Cold Spring Eyes 3.7% Tax Levy Hike

By Holly Crocco

The Cold Spring Village Board continued discussions on its tentative 2026-27 budget during its most recent meetings, with the public offering input on the spending plan.

The proposed $5.5 million budget increases the tax levy by 3.7 percent, or $2 million, which is within the state-mandated cap.

“It’s an unstable economy and costs in every sector are skyrocketing into double-digit percentages,” said Mayor Kathleen Foley during the April 8 board meeting, where she opened the public hearing on the budget. “Just as individual households are experiencing, the village is facing steep cost increases in material, fuel, electricity, and more.”

Foley highlighted some achievements from the current year, including a sales-tax-sharing agreement with the county, new municipal agreements with highway departments across Putnam, and engaging a labor attorney to bring best practices to the village.

“We had a big year on the infrastructure and capital project side,” she added, noting that the village completed two FEMA disaster recovery projects, as well as replaced the stormwater culvert on Fair Street that was a long time in the making, paved and repaired several village streets, repaired sidewalks, and made upgrades at three critical intersections for pedestrian safety, including enhanced crosswalks and improved visibility.

For the coming year, Foley said the village is prioritizing essential projects and services to maintain the quality of life that residents have come to expect.

Expenses for the general fund – the largest of the three funds that make up the village’s budget – are broken down as follows: 26 percent for streets, parks, and infrastructure, including staff; 19 percent for the police department; 16 percent for employee benefits/retirements; 14 percent for salaries and contracts; 7 percent for professional services (engineering and legal expertise); 7 percent for garbage/recycling; 5 percent for the fire company; 3 percent for village court; and 3 percent for debt service.

Revenue is made up from 54 percent property taxes, 11 percent state aid, 11 percent from interfund transfers, 8 percent justice court fees, 5 percent parking fees, 1 percent hotel occupancy tax, 1 percent county sales tax, and another 9 percent in “miscellaneous.”

Foley noted that county sales tax sharing, which formally began in November, adds only about $50,000 to the village’s coffers. “We’ll take it,” she said. “But it’s 1 percent. It’s a drop in the bucket compared to our expenses – particularly those related to visitation management.”

Goals for the next year include completing two more FEMA recovery projects from the July 2023 storm, additional street paving and sidewalk replacement, an engineering assessment of the village dock and pier, improved signage for metered and residential parking, installing wayfinding signage, engineering for rectangular rapid flashing beacons, undertaking a climate adaptability study, systemized fleet management, and expanding multiday garbage pickup on Main Street in longer months to meet the growing visitor season.

The water fund includes $8 million for a repair project for the upper reservoir, for which a $2.5 million grant has been secured for construction and engineering.

The water flat rate – the charge for delivering safe drinking water – will increase $2 per month on average. This is the same for all residents inside the village and includes the operation and maintenance of five reservoirs and water impoundments, the operation and maintenance of the water treatment plant, and staffing.

The water usage rate will increase about $1 per every 5,000 gallons used.

In the wastewater fund, the flat rate – the charge for treating the water before discharge, covering operation and maintenance of the plant, and staffing – will increase on average $1.50 per month.

The usage rate will increase on average 55 cents for every 5,000 gallons.

Residents had mixed feelings about the tentative spending plan.

“There are a lot of things in this budget that don’t make sense,” said Bill Pew. “Reducing things the village residents care about while increasing the sales of village property and increasing the mayor’s compensation is disingenuous… Increasing the budget over 5 percent, while underspending the current budget 20 percent, risks creating a slush fund for wasteful spending.”

Ed Thompson disagreed.

“I think you’ve made some tough choices, and I think all the choices are fair choices for all the village residents,” he told the board. “Given the amount of time and effort that the board puts in, I think the remuneration is incredibly modest.”

Further, Thompson said the current board has been charged with correcting course from the prior administration.

“It’s a problem of legacy … a problem of chronic underinvestment in the past, which has resulted in you having to do catch-up projects as well as having to deal with the high running costs of out-of-date infrastructure,” he said. “I think the budget is a step toward.”

Discussion on the tentative budget continued at the April 13 meeting.