City Council gave itself the option to exceed New York’s property tax cap in its 2027 budget Monday, while approving a two-year fire protection contract that will bring the city $3.1 million from the Town of Canandaigua.
The tax cap vote does not set next year’s tax levy or commit the city to exceeding the limit. City Manager John Goodwin said council has passed a similar law annually since the state tax cap took effect, including years when the city ultimately stayed under it.
Goodwin said the law gives council room to respond to costs and revenue estimates as it works through the budget. It also protects the city if a small error in calculating the cap would otherwise put its levy over the limit.
Council held a public hearing on the measure before the vote. No one spoke.
Budget decision still ahead
The cap applies to the total amount the city raises through property taxes, not directly to an individual property owner’s bill. Goodwin said assessments determine how that levy is divided among property owners. The city expects to conduct a reassessment next year.
Goodwin said sales taxes account for roughly a third of city revenue and property taxes for another third. State aid and other sources make up much of the remainder. He said the city’s primary unrestricted state aid has not increased in more than a decade, although temporary additions in recent years have made it harder to predict what will be available in future budgets.
The city manager expects to present his recommended budget Nov. 1. Council can change it before adoption, and Goodwin said the process will include a public hearing and budget work during November. The budget is expected to be adopted in December.
Town fire contract renewed
In a separate vote, council authorized a new agreement to provide fire protection to portions of the Town of Canandaigua. The current contract expires Dec. 31. Under the successor agreement, the town will pay the city $1.5 million in 2027 and $1.6 million in 2028.
Goodwin said the payment formula considers the assessed value of the town area served, its share of the Fire Department’s calls and a portion of the city’s operating and capital costs. Council approved the agreement without opposition or extended debate.
Council also accepted financial statements for the year ending Dec. 31, 2025. The attached audit draft says the city’s statements fairly present its financial position in all material respects. The resolution, however, contains a discrepancy: Its title and opening language refer to 2025, while its final clause says council is accepting statements for 2024.
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