BY JIMMY LAWTONNorth Country This Week

OGDENSBURG — City Manager Fonda Chronis is proposing a 2027 budget that would increase the city’s property tax levy by 3.82%, lower residential water and sewer rates and maintain current city services.

Chronis presented the $14.98 million General Fund budget to the City Council on Oct. 13.

However, work is just beginning with the first budget workshop planned for 6 p.m. tonight (Oct. 14) at city hall.

Under the proposal the  tax levy would increase by $209,310, from the 2026 level to $5.69 million. The tax rate would rise from $15.1672 to $15.5215 per $1,000 of assessed property value, an increase of 2.34%.

The increase would remain below the state property tax cap, meaning the city would not need an override.

Mayor Michael Tooley said the proposal reflects the work, effort and vision of the city council and management team and said the growth in sales tax points toward a shift in the direction.

Tooley said that the change has also been noticed in Albany with more than $32 million in grants coming into the city in recent years.

“Modest progress has been made to address our fiscal problems,” he said.

Chronis noted that it was one of the hardest budget’s he’s ever worked on.

City Councilor Dan Skamperle said it’s clear the city needs growth. Deputy Mayor Jennifer Stevenson agreed, noting that everything is more expensive. 

She offered praise to Chronis and department heads for the work that went into crafting the preliminary budget.

Chronis’ budget plan keeps all current positions and services in place. He says that while the city could lower the tax levy, doing so would require cuts to services.

The budget calls for lower residential water and sewer rates to offset the property tax increase for many households.

The annual flat water rate would drop from $470 to $450, a $20 reduction. The annual sewer rate would fall from $638 to $578, a $60 reduction.

For a home assessed at $97,000 with flat-rate water and sewer service, the city estimates the combined annual cost of property taxes and utilities would decrease by $45.90.

The property tax bill for that home would increase from $1,471.49 to $1,505.59. The $80 reduction in water and sewer charges would more than make up for the tax increase, Chronis says in his report.

Chronis estimates 86% of property parcels would pay less for city services in 2027 when property taxes, water and sewer charges are combined.

Rising employee benefit costs are the main reason for the proposed tax levy increase.

The city expects General Fund employee benefits to rise by $713,296, or 19%, from 2026. That includes about $300,000 in higher state retirement costs than previously estimated, along with double-digit increases in health insurance premiums.

The budget keeps personnel, equipment and contractual costs flat.

The city also plans to change its employee health plan to offset about $240,000 in projected increases without reducing coverage. Changes to retiree health coverage are expected to save $45,710 while providing substantially equivalent coverage.

The General Fund budget totals $14,978,895

Property taxes would bring in about $5.69 million, while sales tax revenue is projected at $3.25 million. The city expects sales tax revenue to be $400,000 higher than the amount budgeted for 2026.

Tooley noted that the city is still down more than $1 million since the transition from receiving a share of the county sales tax to collect its own following failed negotiations between the entities under the previous administration.

Public safety would account for $8.78 million, or 58.6% of General Fund spending. That includes police, fire and code enforcement.

Employee benefits would make up 29.9% of spending, compared with 26.5% in 2026.

The city’s budget also includes $270,000 from fund balance.

Chronis says that the General Fund is expected to run deficits in 2026 and 2027, with the shortfalls covered by drawing from savings. He estimates the unassigned fund balance would fall to 20.7% of General Fund spending in 2027, near the lower end of its target range of 20% to 25%.