Albany Mayor Dr. Dorcey L. Applyrs has proposed a 2027 city budget that would increase the property tax levy by 15%, introduce a 0.5% city-only sales tax and reduce personnel and operating expenditures by $9.1 million.
Applyrs presented the proposal to the Common Council on Oct. 1. According to the city, the property tax levy increase would generate an additional $9.646 million. For a typical home valued at $250,000, the city estimates an annual tax increase of $280, or about $23 a month, in 2027.
The proposed sales tax would generate an additional $5.25 million, the city said. It would add 5 cents to a $10 purchase or 50 cents to a $100 purchase.
The plan comes as the city faces fiscal challenges and rising debt service costs. Debt service would increase by $9.3 million to a total of $28.5 million in 2027. The proposal also includes a $1.5 million contingency fund for unexpected costs or revenue shortfalls.
Other revenue measures include a new “embellishment fee” for tax-exempt properties, projected to bring in $500,000. The city said the fee would draw on aspects of a Rochester program that offsets costs for street cleaning, snow plowing and sidewalk rebuilding.
The proposal anticipates an additional $350,000 from stronger event fee collections and lists $2.5 million in revenue from recreation and departmental fee increases. The city is also exploring hotel occupancy and short-term rental fees, with $500,000 in revenue identified in the budget highlights.
According to the city, every department contributed savings through position reductions, lower operating spending and other cuts. The administration said the proposal follows recommendations from the Office of the State Comptroller after its review of actions in Albany’s 2025 and 2026 budgets.
The city identified public safety, continued services to residents and economic vitality as the proposal’s priorities. The proposed budget is available on the City of Albany website.