The city of Oneonta Common Council came to a majority consensus to consider raising the tax levy 6.3% in the tentative 2026 budget Thursday, Nov. 13.
Don Mathisen, D-Eighth Ward, said the council should take into account various factors impacting people’s finances, including the different taxes residents pay, like school, county and library taxes. He said utilities in the state are up 11% year over year, rent is up about 5% and monthly homeowner expenses are up above 3%.
He added that employer-sponsored health insurance is up about 7%, food costs are up 2.7% and restaurant meals have increased about 4.7% year to year.
“I think it’s important that we put all of what we are doing here in a larger context,” Mathisen said.
He said if it were up to him, he would not raise property tax above the tax cap and would consider cutting 1% of the city’s spending, a little more than $200,000.
Elayne Mosher Campoli, D-First Ward, said it is important to bear in mind that the budget the council passes can still be addressed throughout 2026 and adjustments could be made.
“We will be able to respond to those challenges, some of these uncertainties, as they become more clear,” Mosher Campoli said. “Setting ourselves up with the strongest budget possible will give us the most options and the best level of services for our community.”
The struggle of community members is a “deeply troubling,” said Cecelia Walsh-Russo, D-Second Ward. Local government provides resources and support that no other entity does, she added, and the city has a responsibility to residents to provide those services that sustain life.
Walsh-Russo said the tax cap is an “arbitrary number.”
“The greater responsibility is to providing the resources that our residents depend on,” Walsh-Russo said.
Virginia Lee, the city’s finance director, provided a five-year projection, hoping it could assist the council in deciding how to move forward with the budget. She said she assumed a tax levy increase of $600,000 for 2026 through 2028, with a 3% increase 2029 and 2030.
If the council decides to go back to the original budget, before about $260,000 of improved assets were added last month, Lee said she recommends considering a tax levy between $300,000 and $600,000 and reducing the appropriated fund balance.
“Then you can increase your appropriated fund balance during the year for the things you think you want to add in as time goes on,” Lee said. “That way, you are laying the foundation for the future by still trying to control costs.”
Walsh-Russo said she was considering the option to roll back the about $260,000 of improved assets to the city, leaning toward it due to the “economic vulnerability that people find themselves in.” Much of the about $260,000 was the increased fire overtime budget.
While she said her tendency would be to implement a larger tax levy increase, Walsh-Russo said she wants to be cognizant of people’s economic situations.
Mosher Campoli said it was an interesting proposal, and she supports balancing the budget responsibly.
Michael Forster Rothbart, D-Seventh Ward, said he was not confident that the items previously discussed as priorities would get funded if left out of the budget.
With increased fire overtime pay, retirement and FICA taking up about $185,000 of the $260,0000, he recommended funding the $80,000 in the budget and excluding the overtime. He said the overtime budget could depend on whether or not the city has the additional revenue.
Kaytee Lipari Shue, D-Fourth Ward, said the city needs a communication position, something the council discussed at its last two meetings as a priority. She said better communication out of city hall is a “worthy expenditure.” While the position was not included in the $260,000, Lipari Shue said she would be in favor if scrapping the other improvements entirely and budgeting for the new position.
Lee said she did not support the $300,000 tax levy. Her recommendation last year was for $600,000, and she said her ask for next year will be bigger.
“The more we delay in raising the tax levy where we think it needs to be, the harder the request is going to be as the future rolls on,” Lee said.
Later, she asked if the council could do a $325,000 tax levy to cover cyber insurance for the city. Scott Harrington, R-Sixth Ward, suggested raising it to a 6.3% increase, or $350,000.
Len Carson, R-Fifth Ward, also was in favor of the $350,000 tax levy. Mosher Campoli said she was willing to compromise, and Walsh-Russo agreed. Lipari Shue was still deliberating, and Forster Rothbart said he believed the tax levy should be higher, as the funds are necessary for the city to provide essential services.