Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Budget topic
No spam. Unsubscribe anytime.
New Lebanon presents 2026 budget; consultant warns of declining reserves and sewer fund deficit
Summary
Financial consultants presented the proposed 2026 appropriation budget, warning of a steady decline in general fund reserves driven largely by police subsidies and projecting a sewer fund cash deficit unless multi-year rate adjustments and capital planning proceed.
New Lebanon officials and outside financial consultants presented the village27s proposed 2026 appropriation budget at the Nov. 18 council meeting, outlining assumptions, fund-by-fund projections and recommended next steps to stabilize long-term finances.
The consultant said the budget relies on conservative assumptions, including an expected 2.5% increase in income tax collections and 3% wage increases; however, he warned the general fund balance is on a steady downward trend. "We have assumed that tax collections will increase about 2 and a half percent," the financial consultant told the council, then highlighted that 75% of income-tax revenue supports the general fund while 25% is earmarked for capital improvements.
Key figures and recommendations presented: - General fund cash balance: projected to be a little over $900,000 at the end of 2026 in the current draft, down from more than $1.4 million in 2022. - Police subsidy: Transfers from the general fund to the police fund remain the largest single pressure on the general fund; the consultant said addressing law-enforcement funding is central to reversing the trend. - Street fund: Budget calls for $100,000 from the street fund for resurfacing plus $150,000 from the capital improvement fund to stabilize spending on streets. - Water and sewer: The consultant recommended delaying water-rate increases until 2027 but signaled a series of rate increases is likely needed; the sewer fund is projected to be in a deficit cash position and out of compliance with state law without a multi-year recovery plan.
Presenter notes included examples of consumer impacts under policy scenarios: a low-volume household using about 2,000 gallons per month would see an illustrative change from roughly $30.62 to $33.97 per month if no water increase and a 20% sewer increase were implemented, a change of about $3.35.
Council members asked clarifying questions about staffing (including planned full-time equivalents in police and fire), capital needs, and the treatment of supplemental appropriations; the presenters said several previously outstanding audit and bookkeeping issues have been cleaned up and that internal controls and a purchasing manual were being advanced to reduce future audit noncompliance.
The budget ordinance (first reading) was introduced and staff scheduled a second reading and public hearing for Dec. 2, 2025. Council will consider formal adoption after that public hearing and the second reading.
