Ancram Weighs Tax Increase and Cuts to Close $135,000 Budget Gap

The Ancram Town Board is weighing a property tax increase and budget cuts as it works to close a projected $135,000 budget gap in 2027.

According to projections by the town’s Financial Advisory Council, Ancram would face a decline in revenue even with a 3.1% property tax increase. The council estimates a year-end cash balance of $860,000, and the town is required to maintain a surplus balance of $750,000, said Budget Officer Steve Olyha, who chairs the council. That leaves only $110,000 available from the surplus, down from the $213,000 used in 2026, Olyha said.

With housing costs rising and home sales slowing, Olyha said he expects declines in sales tax and mortgage tax revenue, as well as revenue from building permits. At the same time, he expects salary and insurance costs to rise.

Olyha recommended that the board consider an additional 6.4% property tax increase, on top of the 3.1% increase he said the council had assumed in its projections, to maintain the required surplus.

The additional increase would cut the gap by $45,000, Olyha said. The town property tax represents a relatively small portion of residents’ overall tax bills, he said, with county and school taxes accounting for larger shares.

“Even though it’s an additional $45,000, that higher increase averages out to $54 a household,” Olyha said. “So we’re not talking about an enormous burden.”

At its Aug. 18 meeting, Olyha said, the council identified possible budget cuts to the assessor’s office, building department, affordable housing, and Ancram Neighbors Helping Neighbors.

Olyha said those cuts alone might not be enough to balance the budget while maintaining the required surplus. The board could also consider lowering the surplus requirement to $600,000 or $650,000, he said, but he cautioned that doing so would be unsustainable in future years without additional budget cuts or even larger tax increases.

“So the only other two materials we have that we can cut are the highway department and the roughly $80,000 around the town camp and town pool,” he said. “As you heard me say before, the FAC did not touch that in this round, we talked about it as part of Ancram’s brand and how important it is. But I’m stuck. We have a gap to make up. I have to give you a balanced budget in September. And without some cuts in those two areas, or the additional tax increase, or the change in the surplus, you can’t balance the budget.”

Olyha said the estimated gap represents a worst-case scenario and does not include any potential grants the town might receive. The council will review a more detailed list of possible cuts, and the figures may be adjusted before its tentative budget submission in October, he said.

In other business, Supervisor Colleen Lutz reported that the Columbia County Board of Supervisors passed two laws at its Aug. 12 meeting increasing the income threshold for property tax exemptions for senior citizens and people with disabilities to $45,000. The new laws establish a sliding scale of exemptions based on income. Senior citizens and people with disabilities with annual incomes of $45,000 or less would qualify for a 50% property tax exemption, while those with incomes between $52,500 and $53,399.99 would qualify for a 5% exemption.

The town is considering matching the county’s changes, Lutz said. The board scheduled public hearings on the two local laws and the tentative 2027 budget beginning at 6 p.m. Thursday, Sept. 17, before its next meeting.

Lutz also reported that the Columbia County Office of Emergency Management accepted several Homeland Security grants to update cybersecurity, purchase a respirator fit-test machine, and purchase software for the Flock system.

“There was a tremendous outcry from the public about the use of Flock in the county,” Lutz said, adding that the Columbia County Sheriff’s Office uses the Flock system to read vehicle license plates and does not collect other biometric data.

“The biggest concern, I think, from the public is the misuse external to the county sheriff’s office,” she said, “And what happens to the data when it’s collected.”

The resolution passed the county’s public safety committee and will go before the full Board of Supervisors for a vote at its next meeting Sept. 9, she said.

Lutz also scheduled sexual harassment and workplace violence training sessions from September through December. The training is required annually for all town employees and committee members, she said.