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SARATOGA SPRINGS — The city’s first presentation of the 2024 budget calls for a $60.5 million spending plan – a 6.2% increase over this year’s plan, and the inclusion of a 2.99% tax increase.
Finance Commissioner Minita Sanghvi revealed the $60.5 million 2024 Comprehensive Budget during a 40-minute presentation on Oct. 3, and set a tentative budget public workshop schedule through the month of October for all departments.
By rule, a budget needs to be approved by a majority of the five-member council by Nov. 30, or the $60.5 million plan presented Oct. 3 goes into effect for 2024.
Among the main issues impacting city finances, Sanghvi pointed to inflation - higher prices of everything from construction materials to health care costs; decisions made by previous administrations to not raise property taxes or conduct reassessments for more than a decade, and the number of new hires made by the current administration.
“We’ve not collected delinquent taxes for a decade,” Sanghvi said. “Ten years ago, the city’s real property tax revenue was $15.99 million, and the adopted budget was $40.44 million. In 2024, property tax revenue will be $17.6 million, and the comprehensive budget is $60.5 million.”
A proposed 2.99% tax increase will have the following impact on taxpayers: $3.32 per month higher for a home valued at $200,000 in the inner district, and $3.25 higher for the same house in the outer district. That monthly impact grows with the value of the home; for example, a home valued at $400,000 inner district would cost homeowners $6.64 more per month, etc.
In a Budget Call letter sent to commissioners on June 20, Commissioner Sanghvi recommended the total preliminary “requested” budget made by each department be similar to the “adopted” budget amount approved this year, or about $57 million. This year’s requests ultimately arrived with a $70 million tag. That amount was whittled down to the $60.5 million plan presented Oct. 3.
Personnel and benefits costs overall account for more than 80% of the spending plan. The city’s 2024 Comprehensive Budget includes no new hires.
Sales tax revenue is estimated at $19.5 million for the calendar year 2024, an increase of more than $2 million compared to this year’s plan.
The city has made 30 new hires over the past two years. “No more hiring until we find new revenues,” Sanghvi said. “There is a lot our administration has been working on these past two years and that’s where we needed to hire people - but we also have to figure out what we need to do to continue our growth in services along with new revenues.”
Those new revenue streams could potentially flow from collecting occupancy tax on short term rentals, cannabis sales tax, parking, reassessment, and community preservation funds. Additionally, the city council is working on collecting delinquent taxes amounting to more than $3 million, Sanghvi said.
Tentative schedule - departments have until October 6 to inform the Finance Department that they would like to reschedule the date of their meeting – are slated as follows:
Department of Public Safety 11:30 a.m., Wednesday, Oct. 11); Department of Public Works, Recreation Department (11 a.m., Friday, Oct. 13); Accounts Department, Finance Department (9 a.m., Friday, Oct. 20); Mayor’s Department, Civil Service (11 a.m., Monday, Oct. 23); Summary of Amended Budget Workshop (5 p.m., Wednesday, Oct. 25).
Public workshops for all departments regarding the 2024 budget will take place at City Hall through the month of October. Each will also include a brief public comment period. For an updated listing of times and dates, visit the city website at: Saratoga-springs.org.
