2026 Town of Niagara budget overview

Guest Editorial by Town of Niagara Supervisor Sylvia Virtuoso

On Nov. 18, 2025, the Town Council approved the 2026 budget with a 4-1 vote. The sole dissenting vote came from outgoing Councilman Chuck Teixeira. While I respect Teixeira’s perspective, it’s worth noting that, in a previous Tribune article, Teixeira acknowledged that consistently keeping taxes below the cap for 15 years may have been a mistake. Despite always voting in favor of past budgets, Teixeira felt compelled to oppose this year’s correction. I find it difficult to understand why elected officials would hesitate to address a long-standing issue.

This year, the budget includes a 5% tax increase. Historically, annual tax hikes were kept just under the 2% cap, which is calculated specifically. For 2026, the amount raised above the cap is $95,800 – representing a 3% overage. The cap itself is a guideline that’s been in place for 15 years. In most years, taxes have increased by nearly 2%. Even if we had stayed under the cap, we would still need to raise $440,000; subtracting the over-cap amount, that would be $344,200. While the increase may seem steep, it’s actually less than $100,000 more than what would have been required. Previously, reserve funds helped cover the difference. However, the state comptroller recommends maintaining reserves at 12%-18%. Using reserves again to fill the budget gap would drop us below this threshold, which could negatively impact our credit rating.

Let’s review the unavoidable cost increases. We must honor contracts for CSEA, police and fire, which include health insurance, workers’ compensation, and retirement costs – expenses beyond our control – as well as retiree health insurance. Operating the Police Department will cost $1.2 million in 2026, while the Fire Company’s contract, pension, and compensation total $564,000. These departments are essential for our community’s safety and well-being.

The Highway Department urgently needs one or two new plows, as the current fleet is over 20 years old. If these break down, we’d have to rely on contractors, which would be much more expensive. The Highway/Water Sewer Building required major repairs due to structural deterioration – a long-overdue project that is now complete and safe. The cost of blacktop has more than doubled since 2015, and aside from savings from switching street lighting to LED, expenses have generally increased.

Turning to the Water Sewer Department: While residents have benefited from low bills and rates, the reality is that revenue never fully covers our obligations to Niagara County Sewer, Niagara County Water, or the Niagara Falls Water Board. We consistently use reserves to pay these bills in full. Since 2015, we’ve paid the Niagara Falls Water Board $7,524,696.09 for one-third of the town’s sewer flow. A contract signed in 2014 should have been renegotiated in 2019, but wasn’t, resulting in steep rate hikes – 16.9% in 2022, 8.9% in 2023, and 5.9% in 2026. For the remaining three-quarters of sewer flow, we’ve paid the Niagara County Sewer District $7,725,018.59 since 2015. Their rates have mostly seen minimal increases, with seven years of reductions. We’re currently pursuing multiple grants to transition from the Niagara Falls Water Board to the Niagara County Sewer District, aiming for substantial future savings – a major effort I’m committed to seeing through.

All lift stations are over 40 years old and have only received minimal repairs. This poses a significant risk to staff and could lead to serious problems if they fail completely. The budget increase this year will allow us to address many of these long-standing issues.

On a personal note, my own tax bill is expected to rise by about $200 in 2026 to receive police, fire, roads, and other town services. For perspective, I pay more than $200 each month for cell phones and cable/TV streaming each. Just something to consider.

As always, I welcome your feedback and am available to listen.

Wishing everyone a happy Thanksgiving!