During the May 5 Long Beach City Council meeting, City Comptroller Inna Reznik and City Manager Dan Creighton discussed the general summary of the proposed budget for the upcoming year.
Reznik offered detailed explanations for many budget proposal items. A digital budget book explaining the proposal is online through the city’s transparency portal at longbeachny.gov/budget.
Public comments about budget items, expenses and priorities are welcomed until May 19, when the City Council will vote on the budget at the 7 p.m. city council meeting.
$5.5 million in increased revenue and expenditures
The total budget for the upcoming year has increased more than 5 percent, or roughly $5.5 million, from $108.3 million in 2026 to $113.8 million. In expecting a balanced budget, both revenue and expenses are projected to increase the same amount.
Several factors led to an increase in annual expenses. “We have collective bargaining agreements, that include pay raises that we have to honor,” Creighton said. “Fringe benefits, especially health insurance, pensions and Medicare have increased significantly. Finally, with inflation where it has been, everything we buy costs more.”
Reznik explained that property taxes accounted for 59 percent of the city’s revenue, with departmental income bringing in nearly 19 percent of annual funds — the numbers are comparable to the 2026 budget.
Budget would pierce the tax cap 1.5 percent
To accommodate the anticipated increase in spending, the tax cap would need to be breached to avoid compromising services and affecting programs.
Increasing above the tax cap would lead to an average tax increase of $229 per household per year to maintain the current level of service across the city. The tax increase would play a role in covering the $5.5 million increase in city expenses.
$230 million in current grant investments
The city is currently managing 57 different grants from federal, state and county resources. These added funds help to defer the cost of a range of services and allow a number of programs which would not otherwise be feasible within the operation budget.
Current programs include the federal Community Development Block Grant which supports nonprofit organizations with up to $10,000 per project.
City’s credit rating sits at a healthy A2
In 2021, the city’s credit rating was Baa3 — nearly considered “junk bond” status. After improving its credit rating to A2 in 2025, the city’s rate of borrowing was positively affected which, in turn, benefits taxpayers.
In 2019, the City of Long Beach was designated at one of the most financially stressed municipalities in all of New York State. Through sound management and budgeting practices, including work to improve the credit rating, the city no longer holds any designation of concern on the state comptroller’s fiscal stress monitoring system.