Penn Yan village officials have formally adopted a 2026-27 budget that stays just under the state’s tax cap, locking in a plan that leaders say works for now — but continues to rely on short-term fixes to manage long-term cost pressures.
The Village Board approved the spending plan following a public hearing this week, setting a 4.57% increase in the tax levy — just below the 4.58% cap allowed under the state formula. For the average property owner, that translates to an estimated $95 annual increase.
To make the numbers work, the village will again rely heavily on fund balance, using about $363,000 to offset rising costs. Officials reiterated that without that one-time support, the tax levy increase would have approached nearly 14%, underscoring what they’ve described as a growing structural imbalance.
Clerk-Treasurer Holly Easling told the board that while reserves remain available — including several funds not yet tapped this fiscal year — the strategy of using fund balance to support ongoing operations is not sustainable. The same concern had been raised during earlier budget discussions this month.
The adopted plan reflects continued pressure from personnel costs, which remain the largest driver of spending increases. Wages and benefits alone are expected to rise by roughly $265,000, with additional increases anticipated in the coming years.
Union negotiations are still ongoing, but some increases are already known. Members of the Police Benevolent Association are set to receive raises between 5% and 6%, while other employees — including part-time and non-union staff — are expected to see similar adjustments. Village officials also weighed a proposed pay increase for court clerks, which would bring hourly wages more in line with neighboring communities.
Beyond personnel, officials continue to flag uncertainty on the revenue side, including concerns about long-term stability in shared revenues like county sales tax distributions. At the same time, modest new revenue streams — including cannabis sales tax — are expected to provide only limited relief.
While the budget maintains compliance with the state’s tax cap for another year, village leaders have been clear that the underlying financial pressures have not eased — and could intensify as costs continue to rise faster than recurring revenues.
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