Saratoga Springs’ Finance Commissioner presented a comprehensive budget plan Tuesday, signaling a tight 2025 on the horizon.
The city’s adopted budget for 2024 was $61.3 million and the initial requested budget for 2025 was $66.2 million. The Comprehensive budget presented by Democrat Minita Sanghvi at Tuesday’s city council meeting had been pared back to $62.6 million with public safety and other cuts.
The Department of Public Safety makes up more than half of the budget at $36.4 million, followed by Public Works at $12.2 million.
Sanghvi says healthcare costs have also risen dramatically, roughly $3 million from 2023 to 2025, totaling $11.9 million. Another $3 million raise in employee benefits brings that number up to $19.2 million.
Sanghvi notes city’s contributions to employee retirements is also going up.
“So, our retirement increase this year alone is $1.2 million, this is a contractual obligation. The New York State Retirement System increased the average employer contribution rate and Saratoga Springs will now be contributing an average of 19.46% of payroll for the employees’ retirement service system and 33.8% of the payroll for the police and fire retirement system,” said Sanghvi.
The budget does not carry a property tax rate increase.
The plan includes funding for a number of non-profits including $387,000 for a 24/7, 365 low-barrier homeless shelter as well as nearly $120,000 for the city’s Senior Center.
Sanghvi says the city has been working on collecting owed taxes.
“So, the city is owed about $2 million in taxes and about another $1 million in penalties and interest. In 2024 we contacted owners of 240 properties that have delinquent taxes from 2009, you heard that correct, and they resulted in 37 parcels being paid,” said Sanghvi.
Commissioner of Accounts Dillon Moran says his office is also in the process of reassessing properties within the city.
“They are finding so many unpermitted structures it’s going to take almost a year to work through the sussing of that data. And essentially I’ve asked them to accelerate that process because we put $75 million on last year, we see a robust year this year, adding that additional value on it’s going to go directly in the direction the commissioner is speaking. And everything that we add and capture to that assessment roll is tax dollars that should have been paid or ought to be paid without having to raise taxes on everybody else,” said Moran.
The city began a paid parking program this year that was expected to generate more than $1.5 million. Slated to run from Memorial Day through Labor Day, it began late.
The city is also expecting increased sales tax revenues from the two new cannabis dispensaries that opened in recent months, as well as the expected approval of a state bill that would allow local municipalities to collect sales and occupancy taxes from short-term rentals.
Sanghvi’s proposed budget includes $1.3 million in funding for a handful of capital projects like rehabilitating the city’s ice rink and a new radio transmitter for public safety, but:
“After careful consideration of the city’s debt service and the large capital budgets of the past several years, I believe a more limited program is advisable. The projects here listed are five of the six top-ranked projects as reviewed by the city’s Capital Program Committee and will be fully funded by municipal bonds. The sixth item requested was $1.5 million for preliminary work on planning a new police station. We support the idea, but we need a firmer plan with a proposed site and a timeline before we can start allocating monies,” said Sanghvi.
The first public hearing on the proposed budget is October 15th.