Albany Mayor Dorcey Applyrs announced Thursday that she is proposing a 15% property tax increase in next year's city budget.
That means city homeowners can expect to pay hundreds more dollars in property taxes annually. On a home valued at $250,000, a property owner could be expected to pay $280 more in property taxes per year.
The 2027 balanced budget proposal is Applyrs' response to the city's worsening financial condition. A pair of recent reports from the New York State Comptroller's Office found that the city was facing a $26 million budget gap for this year (up $4 million from city estimates this summer) and was the second-most fiscally stressed municipality in the state.
To close a projected $35 million budget gap for next year, Applyrs' $257 million proposal also includes a 0.5% sales tax increase, new fees, and $9.1 million of cuts. The budget is also being supported by $20 million in additional state aid for 2027, and another $20 million for 2028.
Most of those cuts will come from personnel cost reductions. Ten employees will be laid off, and the city will save $2.3 million by cutting vacant positions.
At a press conference Thursday, Applyrs acknowledged that the budget would be painful for city residents who are already having a tough time making ends meet, but she argued the tax hikes and spending cuts were necessary to balance the budget and fill what was projected to be a $35 million budget gap.
"If there are residents who feel that they have to leave, people have to do what they have to do, and I honor and respect that," Applyrs said. "But it is my hope that we can retain our residents with the understanding with this particular budget, given the level of the structural deficit, these decisions needed to be made in order for us to ensure that we can continue to provide critical services."
Applyrs said the city is also considering a tax on hotels and short-term rentals, which would require state action.
Nine of the Albany Common Council's 15 members will have to vote in favor to override the property tax cap and approve the budget. Multiple members attended Applyrs' press conference on Thursday.
The mayor's budget will be officially introduced to the council at its meeting on Monday.
