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Mayor Kim Ecklund has said the 2027 city budget wouldn't be pretty.
The proposal released Thursday by Ecklund includes a 7.39% tax levy increase, increasing the tax levy by $1,302,414 to support a $47.3 million total budget. The proposed 2027 tax rate of $27.63 per $1,000 of assessed valuation is a 7.26% increase from 2026. Ecklund also proposes using $2,775,406 from the city surplus, though that is set to provide only a temporary and limited financial cushion and is not sustainable to support ongoing operations.
Background wise, during her presentation of the budget to council members, Ecklund said the basic state aid the city receives as a municipality remains flat at $4,572,280, where it has been since 2011. There are no additional AIM payments expected either, and the city is also set to see the end of their usage of ARPA funds.
"The 2026-2027 New York state budget included a one time temporary municipal aid payment of the $1,592,760, which was unanticipated and greater than any other temporary municipal aid that we had received," Ecklund said. "This funding will help us with unplanned increases in 2026 expenses and reduce the amount that would otherwise be drawn from the fund balance at 2026's end."
The historical level of basic aid funding is expected to be maintained in the 2027 budget. Ecklund noted that a tax cap of two percent makes it difficult for municipalities to move forward facing continuous rising costs and inflation. As of August 2026, she added the rate of inflation in New York State is at 4.3%.
Ecklund briefly talked a bit more on the history of aid from the state, fixed costs and labor in the budget that are continuing to increase, such as dental and health insurance, salt contract cost, stop loss insurance, state pension costs, minimum staffing and arbitration, and labor agreements including grant funded positions.
"The end of 2026 and the first quarter of 2027 mark the conclusion of funding for 12 grant funded fire department positions," Ecklund said. "Four ARPA positions were funded and scheduled to sunset at the end of 2026. SAFER grant positions were eight positions that were funded through the SAFER grant that will continue to lose grant funding until completely reaching the end in the first quarter of 2027."
The loss of funding for these 12 positions represents approximately a $1.5 million increase in fire department salaries and fringe benefit costs, Ecklund said. For 2027 staffing, through attrition, utilization of ambulance revenue, and overall personnel management, the city's executive budget is proposing no layoffs in 2027. This is for both the fire department and city-wide.
Ecklund then addressed labor contracts, which are now all fully executed, and noted that that is a huge accomplishment for the city following two years where there were no contracts. The contracts were active, but there were no negotiations. Current contracts will not begin to expire until the end of 2028.
Salaries are projected to increase $1,191,232 overall over what they were in 2026. Ecklund also addressed the continual increase in retirement rates, projected health and dental insurance increases, property insurance, fuel expenses, salt costs, and the city's fiscal outlook.
"With mounting costs that are largely outside the city's control, maintaining a balanced budget is becoming increasingly challenging," Ecklund said. "The approach for 2027 is through careful planning, disciplined financial management, risk assessment and litigation. The city is working to preserve essential services and maintain a balanced and sustainable 2027 budget that meets the needs of Jamestown's residents and taxpayers."
Ecklund then shared charts with the council outlining the budget, broken down by categories and departments. Like the past few years there is no discretionary capital spending included in the city's 2027 budget beyond CHIPS funding and essential capital improvements. Long term strategic planning for both financial and capital needs is also currently underway.
Ecklund then discussed property tax assessment challenges and future outlook, and the impact from the recent Downtown Revitalization Initiative funding from the state. The rest of Ecklund's budget presentation addressed early action the City Council has taken in regards to the budget, significant increases that have been seen and are continuing in the city, positive developments such as a projected increase in sales tax of four percent and other projected revenue increases, and an overall budget recap and key takeaways.
The budget now gets handed over to city council for review, beginning with department budget presentations that start on October 19. A public hearing on the budget will be held on November 16, and by the charter the budget has to be adopted by December 1. The official budget vote is scheduled for November 30.