General and Water Budgets passed unanimously by Common Council
From City Hall
The City of Hornell Common Council met in a special meeting following public hearings to review and approve the budgets for the upcoming 2026-2027 fiscal year. The Council unanimously approved the proposed budgets for both the General and Water funds. While the Water fund remains stable, the City’s General Fund includes a 12.89% decrease in the tax rate, dropping from $13.45 to $11.72 per thousand.
The General Fund budget this year was shaped by the recent completion of the 2025 revaluation. The budget focused on maintaining services, while being mindful of the impacts on tax payers. Since the last assessment revaluation, which was effective in 2020, the value of homes in Hornell has changed significantly. State sales data shows the median home price in 2020 was $62,000, but as of 2025, that figure rose to $111,950: an increase of nearly 81 percent. The goal of a revaluation is to ensure property values are set fairly by redistributing the tax levy across the community. This helps ensure the tax burden is shared equitably, so a neighbor who recently purchased a home at today’s prices is not carrying a heavier load than someone whose assessment remained at 2020 levels.
This budget serves as a blueprint for the services to keep our community safe and functioning, including fire protection, police services, and infrastructure maintenance. Just as households are feeling the pinch of rising costs and inflation, so does the City. Increases to costs such as health insurance and utilities are felt at the local government level just as they are at home. For example, residents are familiar with the rising costs of electricity, and this is also experienced by the City. This is seen not only with the highly visible streetlights in our neighborhoods, but also in the unseen infrastructure, such as at the Water Treatment Plant and Water Pollution Control Plant which operate 24/7 using massive equipment and pumps that run continuously. Furthermore, the cost of specialized chemicals needed to ensure our water remains clean and safe has risen exponentially over a short period.
Maintaining this infrastructure and keeping our community safe depends heavily on the people behind the services. As New York State implemented significant minimum wage increases, the City has navigated the challenges of wage compression to remain competitive in attracting and retaining skilled professionals. A routine task like fixing a pothole costs significantly more than it did just a few years ago. That single repair requires the rising cost of asphalt materials and fuel for the equipment, but also, importantly, the labor cost of the employee performing the repair. This reality applies across all municipal levels: whether it is the specialized equipment and fuel required for our fire trucks or the training and gear needed for our police officers. Many of our team members hold specific state or national certifications and bring decades of service to this community, and their expertise is vital to our daily operations. Keeping experienced staff here in Hornell is a priority to ensure our community remains safe and efficient for every resident.
While budgets for the last two years have had no increase to the tax rate, and even a decrease in 2024-2025, overall expenses have risen from around 17 million dollars to over 19 million dollars during that same period. To balance these costs, the City is utilizing $1.3 million of fund balance, or savings, directly in the budget to buffer the impact of the housing market surge and keep tax bills as flat as possible for the typical homeowner whose value moved with the market. This balanced approach allows us to continue to provide the high-quality services our residents expect, while remaining mindful of the financial reality we all face as neighbors.
