Cold Spring Launches 2026-27 Budget Process

By Rob Sample

Facing a host of expensive infrastructure needs, the Cold Spring Village Board on Feb. 25 grappled with spending priorities for 2026-27 – the village’s next fiscal year.

No decisions were made at the first of what will be several budget roundtables prior to the official budget deadline of March 20 and public hearing April 8. However, Mayor Kathleen Foley and Village Accountant Michelle Ascolillo both hinted at a modest tax increase, enabling the village to cope with its pressing infrastructure needs.

“We need to determine salary adjustments for our staff and work toward expanding revenue generation,” said Foley. “We’ll all be part of discussions going on, but I’m sure those of you who have sat in department meetings are getting a sense that we’ve got a lot we have to fund this year.”

That includes the village’s financial obligation to the Length of Service Award Program, a pension-like benefit provided to volunteer firefighters.

Ascolillo noted that under New York law, village property taxes may exceed the state’s 2 percent cap on increases based on positive changes in assessments, new construction, and renovations to existing buildings. She said any increase would likely be around 3 percent.

The trustees tackled the village’s water and wastewater programs, both of which are funded through a combination of flat connection fees and usage rates. Last year, the village hiked its quarterly water rates by half to help defray the cost of issuing bonds for badly needed improvements, with one dam dating to 1865.

The village is anticipating another increase for 2026-27.

“Last year, the village increased the flat water rate 50 percent to help start planning for the bond payment for the dam,” noted Ascolillo. She said that the fixed nature of the rate increase provided more of a guarantee to pay the bond’s debt service, which the village expects to retire in 2029 or 2030.

“The money that the village is raising or charging is not just sitting, it’s going toward the behind-the-scenes work to get the dam ready for construction,” as well as engineering costs, said Ascolillo.

The flat water rate increase would be per connection and would not be based on usage. The board discussed several varieties of increases beginning at $15 per user.

Trustee Laura Bozzi called this method regressive.

“I would much prefer to have people pay for what they use,” she said. “Fifteen dollars is nothing for someone who has a huge house, a big yard, and they’re doing all their landscaping. But for someone who is on a fixed income, it’s a big deal. My preference would be to try to split it between a flat and a usage rate, something to reflect that people are using the resource differently and are in really different circumstances.”

Foley countered that during a drought, the revenue to provide for underlying infrastructure needs would fall short. Ascolillo said her office would model revenue trends during a drought last year.

Trustee Andrew Hunt also pointed out that the increase in funds coming from property owners who use more water should ultimately balance out any regressive effects of a flat rate increase.

Long-deferred infrastructure needs have come to a head, said Foley.

“The village for many, many years did not think in terms of capital projects and long-range asset care,” she said. “The dam is a public safety hazard and we’ve got to deal with it. So, it stinks to be the board that has to deal with it.”

The wastewater plant is also quite dated and needs a host of improvements, including new pumps, and all that would require bonding. “These are all replacement and repair costs,” said Foley.

Among other big departmental requests, the village’s police department is asking for a new patrol vehicle “to replace one of their old, outdated ones that has a lot of issues,” said Ascolillo. The new vehicle cost would be about $65,000 to $70,000 for a fully-outfitted Durango, and would be purchased on a three- to five-year installment plan.

The highway and facilities department is looking to increase one of its part-time employees to full-time, among other things. “Their big equipment request is a new backhoe, estimated at $120,000 on the low end,” said Ascolillo.

The board also eyed several measures aimed at increasing village revenues.

The village recently increased its occupancy tax from 4 to 5 percent, based on a change to state rules. This tax encompasses three hotels and inns and will soon encompass Airbnb rentals. Additionally, it’s not uncommon for a flood of day-trippers to show up during warm months, prompting several board members to suggest instituting a day pass or visitor’s fee to help the village cope with the influx of people – particularly with regard to trash cleanup.

“Another increase to sources of revenue is the new Putnam County tax-sharing contract,” said Ascolillo. “It’s new to the budget… We will (also) need a deeper dive on grants the village wants to apply for. That’s something that I will work on, and docking (fees) are another.”