Saying the city faces rising costs and a $4.7 million budget gap, Saratoga Springs Finance Commissioner JoAnne Kiernan has proposed an 18% property tax rate increase in her 2027 budget.
The $67.4 million budget would override the state’s property tax cap and cost property owners $128 per $100,000 assessed value, said Kiernan, who took office this year. She says the city over the last four years has used fund balance to balance its budgets while costs have outweighed recurring revenues.
“We have reached a point where continuing that practice is not financially sustainable,” she said in her budget report.
Kiernan said that the city since 2022 has faced rising costs to pay for retirements, health insurance, salaries, overtime and debt service, which have strained city finances. While revenues increased by $6.6 million over the last four years, expenditures have increased by $16.8 million, she said.
She said the 2027 budget comes at a “critical point in the financial history of Saratoga Springs,” and city leaders have to address the budget imbalance before it comes a more serious problem.
“As part of the 2027 comprehensive budget, the City is taking meaningful steps to reduce expenditures and examine how we deliver services. This includes a reduction in workforce, a difficult decision that is necessary given the City’s financial circumstances. Our employees are essential to providing the services our residents rely on, and any reduction in staffing must be carefully considered.”
The city’s public safety department employs 80 police officers and 81 firefighters.