Albany Mayor Kathy Sheehan Presents 2026 City of Albany Proposed?Budget

ALBANY, NY - Mayor Kathy Sheehan presented her 2026 City of Albany Proposed Budget to the residents of the City of Albany and Common Councilmembers earlier today - a budget for city residents that makes transformative and lasting investments in Public Safety & Mental Health Services, World-Class Recreation Facilities, Infrastructure, Sustainability, and the City's Workforce.

2026 Proposed City Budget: https://albanyny.gov/budget 

Video Presentation: https://www.facebook.com/AlbanyMayorKathySheehan/ and https://www.albanyny.gov/299/Speeches-Events 

Albany Mayor Kathy Sheehan said, "On a wintery New Year's Day in 2014, you placed your trust in me as I took the oath of office to become Albany's 75th Mayor - an honor I am grateful for every day.

"The last 12 years have been marked by transformation, resilience, and progress. We have improved the delivery of essential city services, secured historic investments in our parks, streets, and community centers, reduced poverty, led through a global pandemic, enhanced public safety, brought City Hall into the 21st century, and expanded our tax base. It is undeniable: we have overcome challenge after challenge and positioned Albany for a thriving future.

"The 2014 City Budget I inherited from the previous administration was built on a $16 million structural deficit, a depleted rainy-day fund, and significant revenue tied to a quickly-filling landfill.

"I'm proud to say my administration has worked assiduously over these last 12 years to leave our next Mayor with this final budget that is built on a firm fiscal foundation. We have eliminated the structural deficit, grown our rainy-day fund to $15 million, extended the life of the landfill and ended our reliance on the revenue it once generated, and secured a historic and unprecedented commitment for recurring Capital City Funding thanks to our partnership with Governor Kathy Hochul.

"During that time, we have also undertaken what is likely the largest infrastructure improvement plan the City of Albany has ever seen. We built a new Lincoln Park Pool, Albany West Community Center, Albany South Recreation Center, Washington Park Playground, and City Hall Roof. Plus, we paved more than 200 miles of streets, replaced more than 70 miles of sidewalk, constructed more than 13 miles of new bicycle and pedestrian paths, and revitalized nearly every park, playground, and spray pad in Albany. And our Water Department invested more in water and sewer infrastructure over the last 12 years than had been spent in the 25 years before I became Mayor.

"We also worked tirelessly to hold the line on taxes, only increasing the property tax levy approximately 1.2% annually over the last 12 years. The same goes for spending: our budgets have only grown approximately 2.4% annually over the last 12 years, which is less than the rate of inflation. These accomplishments are not by accident - they are only because of our punctilious efforts to do more with less, find new revenues beyond property taxes, and ensure we are efficient and effective stewards of taxpayer dollars, and this budget is yet another testament to that commitment.

"I want to thank our Acting Commissioner of Administrative Services and Budget Director Gideon Grande, Deputy Budget Director Kate Fitzpatrick, and Chief Financial Manager Joel Stetson for the months of hard work that went into creating this document that very clearly reflects what we as a city value.

"We have accomplished so much together in the city that we all love and care deeply about, and I am incredibly proud of the dedicated public servants I have the honor to work alongside who have helped make it possible - this team is truly second-to-none.

"I look forward to working with the residents of the City of Albany and members of the Common Council to approve this budget so that our next Mayor can continue investing in New York's Capital City to ensure it remains an Albany for All - powered by pride and potential - for this generation, and generations to come. I truly believe our future has never been brighter, and I cannot wait to see all the great things to come beginning on January 1, 2026, as a resident of our beautiful city."

Mayor Sheehan's 2026 City of Albany Proposed Budget:

Serious About Public Safety:

• Thanks to a major investment by Governor Hochul, New York State's largest Crime Analysis Center at APD Headquarters continues to be an invaluable resource in the City's efforts to enhance public safety over the last year:
• Shooting Incidents down 54%
• Shooting Victims down 49%
• Property Crime down 20%
• Overall Crime down 21% during Mayor Sheehan's tenure
• Allocating $2 million to replace and upgrade the police department's body worn camera hardware and software - improvements that will continue to enhance transparency, accountability, and efficiency

Mental Health & Substance Abuse Crisis:

• Albany Navigates - the joint mental health and housing resource program in partnership with Albany County - started in June and is already having an impact:
• Street Outreach Team:
• 287 encounters
• 138 admissions
• 41 people housed permanently

Expanding Youth Support:

At the request of our Chief City Auditor and several Councilmembers, allocating $500,000 within the Department of Recreation to help fund a youth support hub pilot program

It is anticipated the expenditure will be funded by grants the City hopes to secure in the coming months

Improving Walkability by Slowing Down Traffic:

In 2025, the City:

• Added 70 speed humps
• Implemented a new 25 MPH citywide speed limit
• Completed installation of speed cameras across 20 school zones to enforce the existing 20 MPH speed limit
• Recently partnered with the Albany City School District to add school bus stop-arm cameras to prevent drivers from ignoring school bus stop lights
• These changes have already helped reduce traffic accidents by 40% and accidents with injuries by 50%

In 2026, the City will:

• Invest $30 million to resurface streets, revitalize sidewalks, and enhance traffic signals in every neighborhood
• Add speed humps on even more streets
• Begin construction of the traffic-calming features contemplated in the Washington Park Complete Streets Study

Expanding Our World-Class Recreational Facilities:

In 2025, the City:

• Opened the brand-new Lincoln Park Pool this summer
• More than 32,000 unique visits to this world-class aquatic facility during its first season
• Continued construction of the new Washington Park Playground (slated to open October 2025), the new Albany West Community Center (slated to open December 2025), and the new Albany South Recreation Center (slated to open Summer 2026)
• While previous budgets' capital plans contemplated the borrowing necessary to construct these projects, this budget allocates the revenue required to begin repaying those bonds while also returning to our more typical park improvement schedule

In 2026, the City will:

• Resurface the playing courts at Colby and Washington Parks
• Rebuild the playgrounds at Swinburne Park and Colonie Street Park
• Replace the spray pads at North Swan Street Park
• During Mayor Sheeha's tenure, the City of Albany has invested $17+ million toward revitalizing nearly every city park

Growing Our City:

Over the last 12 years, Albany's tax base has grown from $4.7 billion to $7.8 billion - reflecting the thousands of new units and more than $1 billion invested in both market-rate and subsidized housing

Mayor Sheehan is calling on the Common Council to revert Albany's inclusionary zoning rules back to the pre-2023 version that was working to build more inclusionary units within more market rate developments

NOTE: the Common Council's inclusionary zoning law is making property tax bills larger

Payments in Lieu of Taxes (PILOTS) for development projects that are awarded property tax abatements by the City's Industrial Development Agency (IDA) are down nearly $400,000 - part of the reason necessary to increase the property tax levy in this budget

Mayor Sheehan fears that future Mayors will need to raise taxes even more on our already over-burdened property owners to pay for this good intentioned but flawed legislation that has essentially stopped all market rate development in Albany

Ensuring Financial Stability:

On average since 2014, the City of Albany has held the line on taxes and spending:

• Albany's property tax levy has increased by only 1.2% while NYS cities' property tax levy combined has increased by 2.3%
• Albany's total spending has increased by only 2.4% while the Consumer Price Index has increased by 2.9%
• Albany's property tax rate has decreased by more than 36.7% while NYS cities' property tax rate has only decreased by 18.7%

The 2026 Budget proposes a 3.0% property tax levy increase:

Anticipated additional expenditures include:

• $4M increase to debt service as we begin repaying bonds associated with the new Lincoln Park Pool, City Hall Roof, Albany West Community Center, Albany South Recreation Center, and Washington Park Playground
• $1M increase (8%) to retiree healthcare expenses due continued economic volatility
• Proposed reorganizations of the Mayor's Office, Treasurer's Office, and Auditor's Office based on requests from the individuals expected to oversee those offices in 2026 have resulted in an overall expenditure increase of approximately $430,000
• Budgeting a $135,000 increase in total spending to recognize pay raises for the City's elected officials - the first pay raise for elected officials since 2022.

Anticipated revenue shortfalls include:

• $1M decrease because the final allocation of American Rescue Plan Act funding is being realized
• $400K reduction in PILOT payments are forecasted partially due to the lack of new development as a result of the Common Council's Inclusionary Zoning rules

The 2026 Budget also proposes an increase to the Solid Waste Collection Fee:

• Mayor Sheehan's administration has been successful in extending the life of the landfill from 2020 to 2028, however ultimately the cost of trash disposal will increase
• When the City created the trash fee in 2017, it was designed to offset the cost of trash collection
• While the fee has remained static since 2019 when the City eliminated the first unit exemption, the cost of trash collection has increased by more than 50% from approximately $3 million a year to more than $5 million
• To cover that added cost, the City is proposing to increase the Solid Waste Collection Fee by $90 per unit per year
• A single-family home in Albany will pay $180 per year for trash removal in 2026, a fee that is less than half of what neighbors across the Capital Region pay for trash disposal

Mayor Sheehan fully anticipates that the next administration will continue the community conversation around the future of solid waste removal and the potential construction of a transfer station as we expect the landfill to reach its capacity in 2028

Securing Grant Resources:

• More than $24 million in grant revenue included in the 2026 budget, including:
• $11 million for Roadways
• $3 million for other city infrastructure
• $3.8 million for Youth & Workforce Development
• $575k for Sustainability Efforts
• $1.3 million for Urban Forestry
• $4.2 million for public safety & health efforts, including:
• $1.6 million for Gun Violence Elimination Program

The Future Is Bright - But Don't Forget the Sins of the Past:

As Mayor Sheehan noted in this year's State of the City address, when the City uncovered a time capsule under the Schuyler Statue, we also found a letter from 1925 that read in part:

"Very slowly has Albany developed in the three hundred years of her history. Her citizens seem to have been content to let well enough alone. Great industries like the General Electric were discouraged from locating here. Leading and influential men desired apparently to keep Albany for the most part a characteristically residential city. In many ways the Capital of the Empire State was decidedly backward as compared with the other leading cities of this state and nation."

This sentiment is part of why Mayor Sheehan's administration has fought for the last decade-plus to ensure Albany received its fair share from New York State

Albany has been treated like no other city, and Mayor Sheehan is proud of the fact Albany has been successful in securing a commitment from Governor Hochul for recurring Capital City Funding - but that was just the first step

With the Governor's Championing Albany's Potential (CAP) Initiative, we have a transformative, once-in-a-generation investment slated for New York's Capital City

The $400 million State-led effort is designed to revitalize Downtown Albany, strengthen cultural institutions, reimagine the I-787 corridor, and enhance public safety

Mayor Sheehan urges the City of Albany: "we must be bold, and we must rid ourselves of the parochialism that has held us back in the past. We have an opportunity to shape progress, further expand our tax base, and continue to grow into a hub of commerce, culture, and connection for generations to come. I hope our City government will continue to support the Governor's efforts in any way that we can, especially because we have built the foundation to do just that."

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