County staff recommend 4.34% levy increase as part of 2025 budget package

Tompkins County staff presented two 2025 budget scenarios on Sept. 3 and recommended a 4.34% property-tax levy increase to maintain services and preserve reserve policies. The presenter said the recommended operating budget totals $252,000,000, includes a $36,000,000 capital program and would raise the county property tax bill for the owner of a median-valued home ($300,000) by about $138.

The administrator framed the recommendation as a "transition year" prompted by new audit information about unassigned fund balance and the county's decision to set a 25% minimum fund-balance policy. "If approved, the recommended 2025 operating budget ... would add $138 to the tax bill on a median priced home of $300,000," the presenter said. Staff emphasized that using unassigned fund balance in 2025 would risk falling below the newly established minimum and that a side-by-side 2% scenario was prepared for comparison.

Legislators pressed staff on several assumptions driving the recommendation, including the treatment of one-time and multi-year over-target requests (OTRs), pension and health-insurance cost projections, and the department vacancy factor used in labor-cost forecasts. On interest-income estimates and the proposed use of debt-service reserves, one legislator asked, "How much is in that debt service fund now?" County staff replied that roughly $11,000,000 is on hand and suggested $3,000,000 could be used while maintaining the recommended minimum. The presentation also spelled out mandate-driven increases: an estimated $362,000 Medicaid cost shift for 2025 and a $606,000 increase in childcare costs tied to state eligibility and provider rate changes.

The county administrator said materials showing exactly which OTRs were restored under the 2% and 4.34% scenarios will be available to the expanded budget committee for detailed review. The budget process will continue in multiple committee hearings planned through September and October.