The City of Troy’s proposed 2026 budget is drawing concerns from council members in both parties.
The more than $122 million proposed budget includes a 2.29 percent tax hike, $25 reduction in the controversial garbage fee, and tens of thousands in personnel savings.
First-term Republican Mayor Carmella Mantello says under next year’s proposed budget, she hopes the administration can move ahead on projects like replacing lead pipes, opening the Knickerbacker Pool, and moving city hall into the former Proctor’s Theater downtown.
“Other munis [municipalities] have double digit tax increase proposals. We don't here in Troy because we are thinking differently,” Mantello said.
Nearby, the City of Schenectady’s more than $120 million budget proposal includes a 3.17 percent increase. Saratoga Springs’ proposal is a roughly 2% increase. And in Cohoes, residents likely won’t see an increase to property taxes, according to city mayor Bill Keeler.
But some Troy councilors are questioning the administration’s inability to provide specific numbers for many of their questions and how that could impact future budgeting. Councilor Aaron Vera, a Democrat from District 4, says everything has to go perfectly for the budget to pan out as proposed next year.
“Specifically, sales tax, that seemed to be overestimated, in my opinion,” Vera said. “So, I requested some additional information from the comptroller to get better idea of what it is that they're projecting and how that fits into the historical data we have from the county. You know, the budget, it’s a tight budget, that's not unusual.”
Rensselaer County’s 2024 sales tax PILOT receipts totaled $19.79 million for Troy. The city estimates that same fund will draw $22 million in revenue in 2026.
Republican Councilor Ryan Brosnan, of District 2, says while he’s not “overly happy” taxes are being raised, that’s part of life.
“It's going to be a net positive for everybody in the city of Troy,” Brosnan said. “The mayor keeps saying, ‘We're doing more with less,’ but with the increase to the tax, you're able to do more with just a little bit more than you had last year. That being said, it doesn't keep up with inflation, so even though your taxes are going up, it's not meeting inflation.”
Brosnan added he is happy to see union contracts were negotiated ahead of the budgeting process this year. The city’s first responders will see slight increases in their budgets.
The proposal comes as the city is formally preparing to begin work on a new city hall, which some estimate could cost millions more than the administration is anticipating. Last month, the city’s Republican-majority council approved a land development agreement with the Troy Local Development Corporation (LDC). The LDC will lease the property to the city, which the city says will save taxpayers $100,000 annually and not raise taxes.
Council President Sue Steele says while city hall’s transition hasn’t been specifically discussed yet during budget talks, she’s concerned. The Democrat says the estimated $10.5 million project is being rushed and is likely to cost more than its current lease at the Hedley Park Place building on River Street.
“They [the administration] likes to tell their talking point that they're going to be saving taxpayer’s money. I have yet to see that proven so stay tuned,” Steele said.
The 2026 proposed budget includes $650,000 for a new city hall.
The city’s budget also plays a role in Troy’s Business Improvement District’s ability to stay afloat. The BID hasn’t received an increase in funds since 2008. Now, it’s asking for a 15 percent increase, an average of nearly $50 per month per property. Its current rate is nearly $17 per property.
Departmental budget meetings continue through next Thursday.
