Carmel Budget Stays Within Tax Cap

By Holly Crocco

The proposed 2027 budget for the Town of Carmel stays within the state-mandated 2 percent property tax cap.

“We worked to keep this budget as tight as we could make it, taking into account labor, health care, operation costs – all the things that go into running a town,” said Supervisor Michael Cazzari at the Oct. 7 Carmel Town Board meeting.

According to Town Comptroller Mary Ann Maxwell, the proposed $28.6 million levy represents a little more than a $1 million increase, and comes in $1,100 less than the allowable limit.

The tax rate is 4 percent, which is a 1.15 percent decrease from 2026.

If someone’s assessed value didn’t increase, per the proposed budget, a homeowner with a property valued at $542,780 would pay about $2,171 next year, which is a $27 decrease from 2026.

However, Maxwell cautioned that residents may not see a reduction in their tax bills, because assessed values have gone up. “Generally, you may not see a decrease in taxes just because the tax rate is decreasing,” she said.

Expenses total $38.6 million, with revenue coming in at $9.7 million. A total of $258,000 in reserve funds is proposed to be used.

“I do have to say that Moodys (Corporation) was concerned about the drop in the fund balance from the prior year,” said Maxwell. “In the budget for 2026, we did use $600,000 from the fund balance. This year I tried to keep it as low as possible.”

Despite that concern, the town has maintained its Aa1 bond rating – the second-highest credit rating the corporation gives out.

When it comes to expenditures, contractual employee salary benefits make up 76.8 percent of the budget.

The public safety budget reflects a 5.6 percent increase, including $13.9 million for the police department, as well as New York State retirement pension costs, and police overtime that’s up $918,000.

Maxwell noted that from 2024 to 2026, the police department received $846,000 in grants, and a number of grants are still pending for upcoming equipment and vehicle purchases. “I do have to say, the police department is always looking at different grants,” she said. “They are definitely very active with that.”

Each the Mahopac Public Library and Reed Memorial Library of Carmel will receive $40,000.

A public hearing on the budget is scheduled Nov. 4 at 7 p.m. at Town Hall.