Saratoga Springs budget workshop pins 2026 shortfall on rising public‑safety costs; revenue options discussed
Summary
Council workshop presenters said most recent revenue growth has flowed to public safety, while benefits, retirement and capital costs have surged. Staff offered several revenue options — occupancy tax collection, tax‑rate changes and reducing discounts — to narrow an estimated budget gap.
Saratoga Springs City Council finance staff and public‑safety leaders told the council at a budget workshop that most recent revenue growth has been absorbed by Department of Public Safety (DPS) spending and that continued increases in personnel, benefits and capital costs have created a budget gap for 2026.
Commissioner Songhvi, presenting the 2026 comprehensive (comp) budget, said the comp budget is a conservative revenue estimate and noted that the amended budget — prepared later in collaboration with departments — is the vehicle staff will use to reconcile department needs. "If the amended budget doesn't get voted on by November 30, the comp budget becomes the budget," Songhvi said.
The presentation outlined several cost drivers: health insurance costs that rose about 27% over four years, retirement costs that increased roughly 86%, and liability insurance that climbed about 188%. Songhvi also cited a jump in capital costs, using ambulances as an example: "the ambulance we ordered in 2019 was costing us $180,000 and then the ambulance in 2025 is costing us $587,000," he said.
Staffers showed that personnel and benefits comprise roughly 84% of the general fund spending (54% personnel, 30% benefits), leaving little discretionary budget. Sales tax has grown — staff estimated about a $3 million increase since 2022 — but Commissioner Songhvi said DPS now consumes the majority of that additional revenue, with DPS accounting for about 60% of the budget and public works about 19%.
Councilors and staff discussed several revenue strategies to address a projected gap, including county collection of short‑term‑rental occupancy taxes and sharing of county collections back to the city; adjusting the property tax rate up to the tax cap (staff noted the statutory cap option of up to 4.5%); and removing the early‑payment discount on property tax (an option that commissioners have discussed in prior sessions). Songhvi described county legislation changes that could return a share of a newly collected county occupancy tax to municipalities and said staff is tracking county timelines for a registry and vendor implementation.
No final budget votes were taken at the workshop; staff and departments will use the comp figures as a baseline while they develop an amended budget for council consideration.
