A loss in property values combined with increases in health insurance and retirement costs has led to a 7.5% tax rate increase in Jamestown Mayor Kim Ecklund’s proposed 2026 city budget.
The $45.57 million spending plan increases appropriations by 5% or nearly $2.2 million.
Ecklund said the proposed budget initially had a 29% tax rate increase before her budget team worked to bring that down to the current proposed rate. She said the use of $3,340,616 from the General Fund Balance toward that reduction is risky, saying that continued use of it would leave the fund balance with nothing in two years.
The proposed 2026 budget calls for $17.96 million to be raised through real property taxes, which represents an increase from 2025 of $1,253,497 or 7.5%.
Challenges in the budget include the loss of assessed property value including the transition of the Jamestown Business College property to non-taxable status with its transfer to St. Susan Center. That represents a $517,700 reduction in assessed value. Several court cases challenging assessments resulted in the reduction of $1.67 million for the BWB building on Washington Street, a decrease of $340,000 for the Big Lots Plaza, and a $800,000 decrease for the Rite Aid property in Brooklyn Square. The total decline in assessments for these four properties alone is $4,187,700.
Ecklund said increased state mandates include the hiring of Jail Matrons that was not budgeted for 2025. Other expenditures include an increase of $502,299 in wages across all bargaining units in 2026 compared with 2025, a 9.41% increases in employer contributions to the New York State Retirement System, a 14.76% increase in health and dental insurance; and a 5% increase in property insurance costs.
Under revenues, a 2% increase in sales tax revenue has been budgeted. The city also has received $25,000 so far in 2025 in revenues from sales of adult-use cannabis with projected revenues for 2026 at $45,000. That said, State Aid has remained flat at $4,527,280 since 2011 with temporary state aid of $530,940 going away for 2026. Emergency Medical Services revenue is also falling short of original projections, and based on current data, will remain below initial projections in 2026.
Under capital projects, Ecklund said there is no discretionary capital spending beyond CHIPS-funded projects and no new capital expenditures planned for 2026. She said unfortunately the delay in replacing aging infrastructure and equipment will drive higher maintenance costs.
Jamestown City Council will begin reviewing the budget on October 20 with presentations by the City Comptroller, Police, and Fire Departments. Council is required to adopt a final spending plan by December 1.
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