Albion village adopts new budget with 11 percent tax increase

Board pared some expenses at last moment to get tax rate under $16

ALBION – Village taxpayers may have expected a drop in their village taxes with the 2025-26 budget because the fire department no longer is part of the village budget.

The fire department now is in the Albion Joint Fire District which is its own taxing entity with its own tax bills.

But the village taxes will be up in 2025-26 – by 11 percent. The Village Board is putting more money in reserves and faces other inflationary increases, with less fund balance to help offset taxes, board members said on Tuesday when the budget was adopted.

The spending in the General Fund increased less than 1 percent or by $62,106 from $4,701,848 to $4,763,955.

But the tax levy, what the village collects in property taxes, is up 11.1 percent or by $345,650 – from $3,117,813 to $3,463,463.

The tax rate will drop more than 20 percent or by $4.41 per $1,000 of assessed property – from $20.40 to $15.99. A big increase in the village’s tax base following town-wide reassessments last year pushed down the tax rate. The village’s taxable valuation is up 41.6 percent or by $63,666,806 – from $152,867,932 to $216,534,738.

The village is using about $200,000 less in its fund balance and that accounts for more than half of the tax increase. Village Clerk-Treasurer Tracy Van Skiver said the village’s fund balance currently stands at only $300,000. She said the state comptroller’s office has recommended the village get the fund balance between $800,000 and $1.1 million. Those funds can help the village with unexpected expenses outside of what is budgeted.

The village only is using $64,000 in its fund balance to help offset property taxes in 2025-26, compared to $261,150 in 2024-25.

“My concern is the fund balance,” Van Skiver told the board on Tuesday. “We’re trying to protect it.”

The budget was adopted by the board on Tuesday after about a 90-minute discussion from board members. The board started the meeting with the budget with the tax rate at $16.34. The board wanted to get that below $16 and needed to cut about $60,000.

The tentative budget had five new reserve accounts at $105,000 for the Department of Public Works and Police Department. Those reserves would have money set aside for equipment, vehicles and infrastructure, and lessen the need for financing and borrowing in the future. The reserve funds should lessen the need to whittle down the fund balance.

The board decided to keep the reserve accounts, but to reduce the amounts by 36 percent or by $37,800 – from $105,000 to $67,200.

“Having some reserves is in the best interests of the village,” said Trustee Greg Bennett.

But he didn’t want to see steep cuts to departments for what they need now just so the village could set aside more funds for the future.

Trustee Joyce Riley suggested eliminating the village’s animal control department which costs $17,000 and having the county take over the responsibility. But Bennett and Trustee Tim McMurray didn’t want to eliminate positions and services to the community. They both said the current animal control officer, Harry Papponetti, responds promptly to calls and concerns in the village. They didn’t want the department axed at the last second without input from Papponetti.

Riley said the village, in order to rein in expenses, ultimately will need to look at eliminating positions.

“Cutting people is where the real savings is, but it’s difficult,” she said. “We need to do it in a way where we’re conserving the village.”

(The Village Board is holding a public hearing at 6 p.m. on June 11 at the Village Hall to hear from the community about possible elimination of the village government and consolidation with the towns of Albion and Gaines.)

Besides reducing the reserve funds, the board made the following budget adjustments on Tuesday to get the tax rate below $16:

General Fund

• Schools and conferences for clerk’s department, down $2,000 to $3,500
• Auditor for clerk’s department, down $850 to $17,850
• Attorney, down $5,000 to $25,000
• Janitor in DOW, down $5,720 to $10,400
• Parts & Repairs in DPW, down $5,000 to $70,000
• Highway overtime in DPW, down $8,000 to $12,000
• Tree replacement in DPW, down $500 to $1,000

Water Fund

• Auditor, down $825 to $17,325

Sewer Fund

• Auditor, down $825 to $17,325

The total budget is at $8,904,229 with General Fund at $4,763,955, Water Fund at $2,640,689 and Sewer Fund at $1,499,585.