Property owners in the Village of Saugerties will see a slight increase in their property tax bills in the coming fiscal year.
On Monday, the village trustees unanimously adopted the 2025-2026 budget, which includes a property tax rate increase from 5 percent to 5.125 percent. The tax hike is expected to raise an additional $143,327.
The increase comes as village leaders continue their efforts to strengthen Saugerties’ fiscal position.
The village received a fiscal stress score of 73.3, placing it under the “significant fiscal stress” category according to the Annual Financial Report, released April 17 by the state’s comptroller’s office. The village was one of nine municipalities out of a list of 518 villages, towns, and municipalities in the report that received stress designation for 2024. It was one of three municipalities that received a “significant stress” score.
A healthy score ranges from 0 to 44.9. Anything higher falls into a spectrum of fiscal stress. The score is based on several factors, including operating deficits, cash position, fixed costs, short-term cash flows, and fund balance.
“Local governments that receive a fiscal stress designation are typically showing signs of stress in one or more of these areas, particularly with low fund balance, since that indicator is most heavily weighted by the system,” said Rebecca Dangoor, a spokeswoman for the State Comptroller’s Office.
Fund balance levels have been steadily diminishing in the Village of Saugerties.
For the Village of Saugerties, the score marks an improvement from last year’s score of 85. Since identifying the issue in March, 2024, village officials have worked with the state to remedy the situation. In 2024, it raised taxes for the first time in 12 years. The village has been working closely with the state to remedy the problem with more frequent budget tracking throughout the year. The state provides assistance with multi-year planning.
“We got into it for not raising taxes for so many years and draining our fund balance,” said Mayor Bill Murphy. “For many years we kept the tax rate flat,” he added, noting that the 2010 merger of the town and village police departments contributed to savings. “We took that savings and pushed that and gave that savings to our taxpayers. We tried to keep it at bay as much as we could for the last 12 years. And that’s part of the reason we got in trouble.”
The score was released just as the village adopted its new budget. At Monday’s Village Board meeting, trustees unanimously approved a $3.52 million budget, a increase of 3.31 percent increase—$112,827— over last year’s $3.41 million plan. Murphy cited rising health care costs and a lack of revenue as central to the fiscal strain
“Contractual obligations are always the biggest thing. Insurance, health care, those are things we can’t control,” he said.
Village Treasurer Paula Kerbert pegged the financial situation to the general increase in costs. “We spent more than we took in, and we had a lot of stuff that we had to pay for,” she said.
Healthcare and benefits for some 25 village personnel rose from $420,000 in fiscal year 2024-2025 to $510,000 for the 2025-2026 fiscal year.
Kerbet, a village resident herself, said there are plans to increase revenue to attract more visitors to Seamon Park, a hilly park in the northeast corner of the village, and to provide overnight lodging for visitors; the park is a popular spot for picture taking and weddings. In addition, there are plans to grow revenue through a new parking system.
Some village residents said they were blindsided by the 2024 tax hikes.
“Last year was such a shock, my taxes went up 30 percent, and where do you get 30 percent out of your pension?” said Suzanne LeBlanc, a long-time resident and former village trustee. “When I got the bill, I had to rely on the savings—I couldn’t eke it up with what I bring in.” LeBlanc, a major proponent and force behind the police department merger, said the village may want to consider merging departments or resources to cut costs.
Leeanne Thornton, a village resident who also serves as the Town of Saugerties’ board as deputy supervisor, linked the tax hikes to the cost of maintaining services.
“It is a lot of things that are fixed expenses that you really don’t have any control over,” said Thornton, adding that “it might be the time for the village to consider cutting expenses to consolidate and share services from the town.”
New Parking
The village plans to complete a new parking lot that will add 30 new parking spaces behind Mirabella’s Restaurant by July. It is leasing the lot from a property owner for $1,000 a month for a 10-year lease, and hopes the lot will be self-sourced by parking permits.
The Village also plans to roll out a ParkMobile app while maintaining existing meters for another year during the transition. Officials are considering a parking permit system for residents and businesses and will establish a parking committee led by village trustee Terry Parisian and include committee members such as village residents Michael and Lori Wardell, the co-owners of Wardell Pottery. The committee will help determine fees and hours.
“It’s great that the Village has leased the additional space next to the Partition Street lot, and this will be a big step in creating more off-street parking that the Village needs,” said Michael Wardell.
Amy Wu is a reporter covering Woodstock and Saugerties. Send correspondence to amy@theoverlooknews.com.