Mayor Kim Ecklund discusses cost increases that are driving a proposed 7.5% increase in city taxes in the 2026 budget.

City residents may see a 7.5% overall tax increase for 2026, though this number is significantly decreased from the amount it could have been.

Last year’s city budget almost gave residents an 8% tax increase before city council was able to reduce that amount significantly, but following that the city has been preparing for another tough budget for 2026, even approving an override to the 2% tax cap levy back in May to prepare. During Wednesday’s budget presentation, Mayor Kim Ecklund said the original amount when looking at the budget was over a 20% tax increase.

“I will tell you that the first budget was a 29% increase,” Ecklund said. “The first round of numbers was 29. We got it down to 24, got it down to 20, got it down through all of these reiterations between here and there, ending up where we’re at with a 7.5% tax increase.”

Part of the ability to reduce this amount, and something that Ecklund said is very concerning to her, is an appropriation of the fund balance of $3,340,616, which is over half of what currently remains in the fund balance. Ecklund addressed the city’s current fund balance at the beginning of her presentation, which currently sits at just over $6 million.

“It is a very risky and concerning move,” Ecklund said. “I have expressed my concern both to the comptroller and to the former comptroller, who you all should be aware of quite a bit in working with my team, Joe Bolito, and I do want to thank him for his dedication. He was here with us for four hours, even yesterday.”

The driving factor of this decision, Ecklund said, is the growth of state funds exponentially. While this budget is one she said she remains a little uncomfortable with, she feels it’s the best they can do and that there is not a lot of wiggle room.

“I wish things were different but it is what it is and I’m confident that what we are delivering today is the best we can deliver to both our employees and taxpayers,” Ecklund said.

Other factors that Ecklund presented during Wednesday’s budget meeting that factored into the tax increase include an increase in both health insurance and retirement costs, along with a loss in property values. Ecklund also addressed multiple required state mandates, such as the hiring of matrons for the jail, that were not budgeted for, and the loss of a few properties that brought in assessed values such as Jamestown Business College. With the transition of that property to non-taxable status as it transfers to ownership by St Susan Center, the city is seeing a $517,700 reduction in assessed value. Thanks to court cases challenging assessments, the city also saw a reduction of $1.67 million for the BWB Building on Washington Street, along with a decrease of $340,000 for the Big Lots Plaza and a decrease of $800,000 for the Rite Aid in Brooklyn Square. Total assessments are down $4,187,700.

With state aid continuing to remain flat since 2011 and temporary state aid going away for 2026, the city is once again looking at no funding for capital projects besides CHIPS-funded road projects.

“With that said, we are committed to a stable, sustainable and resilient Jamestown,” Ecklund said. “For me, there are still some things that are not final in this budget. We’re still waiting on insurance quotes; we’re in the process, we’re out for bid. I don’t know where that’s going to fall, it could come in higher, it could come in lower.”

More sales tax numbers are still coming in and are something Ecklund said they will need to continue to work with the comptroller on and once those numbers are in they will be delivered. She emphasized that with everything the city is currently facing this is the best budget she is able to deliver without impacting personnel and community services.

Budget presentations begin for the city council at the next work session on October 20 and continue until the city council is required to have the budget finalized and approved on December 1.