TOWN OF WEBSTER 2026 BUDGET MESSAGE The Town of Webster began the 2026 budget season in early May. It’s a process that takes six months of the year to complete and it demands a considerable effort by the Town department heads, the Director of Finance and the Town Board. Each department head was instructed to put forth their best effort to minimize the tax levy for the citizens, while providing for the needs within their respective departments. The department heads presented their budgets during the live streamed budget workshops that were held on July 31st and August 7th. A public hearing on the 2026 Preliminary Budget will be held on October 16th. Expenditures The Town’s budget provides funding for many services which include the court system, law enforcement, fire safety inspections, animal control, park maintenance, programs for senior citizens, the fitness facility, recreation programs, public works, drainage improvements, leaf pickup, snow plowing, maintenance of roads and bridges, Webster Public Library, the wastewater treatment plant, wastewater pump stations and the entire sewer collection system. The budget also includes special districts which cover the cost of capital improvements and maintenance for drainage, lighting, parks, sewer systems and water supply lines. The total expenditure budget for 2026 is $53,272,314 which includes $4,910,994 of interfund transfers. These interfund transfers effectively gross up the expenditures and revenue. The net estimated expenditures for 2025 equals $48,361,320 which is broken down as follows: Expenditure Category Employee Compensation Employee Benefits Retiree Employee Benefits Capital Purchases Contractual Costs Debt Service Transfer to Sewer Capital Reserve Total
Amount 17,055,499 7,475,500 2,252,600 3,095,045 10,575,656 7,507,020 400,000 48,361,320
Percentage 35.3% 15.5% 4.7% 6.4% 21.8% 15.5% .8% 100.0%
TOWN OF WEBSTER 2026 BUDGET MESSAGE The Town’s expenditures consist of five major categories which include employee compensation, employee benefits, contractual purchases of goods and services, capital expenditures and debt service. The year-to-year results for each category is as follows: Employee Compensation – The Town employees fall into five groups which include the non-union administrators and part time workers, the blue-collar union (highway and sewer), the police union (police officers) and the white-collar union (office administration). There are three union contracts which cover approximately 125 full-time employees. Total employee compensation for 2026 is $17,055,499 versus $16,377,353 for 2025. This represents a $678,146 (4.2%) increase. Two new positions were added, which include an assistant assessor and an engineering technician. The two positions have an aggregate compensation cost of $130,883. However, the cost is partially offset by two part time positions that will not be funded within the 2026 budget. • Employee Benefits – The employee benefits include contributions to the NYS retirement system, employers share of social security, worker’s compensation insurance, medical and dental insurance, health savings account contributions and medical insurance paid on behalf of retired former employees. The budget for 2026 is $9,728,100 versus $8,407,000 for 2025. This represents a $1,321,100 (15.8%) increase. The large increase is due mainly to a rise in base wages and escalated NYS Retirement System contribution rates as well as a sharp increase in retiree health insurance costs for Medicare supplemental health insurance.
TOWN OF WEBSTER 2026 BUDGET MESSAGE • Contractual Purchases of Goods and Services – Total contractual expenses for 2026 is $10,575,656 versus $9,437,503 for 2025. This represents a $1,138,153 (12.1%) increase. The Town is planning for the following cost increases: o Assessing Revaluation $264,000 (up $219,000 or 486.7%) o CHIPS Road Materials $450,000 (up $200,000 or 80%) o Drainage System Materials $315,000 (up $100,000 or 46.5%) o Engineering Surveying $100,000 (up $95,000 or 1,900%) o Insurance Premium $566,000 (up $131,000 or 30.1%). o Town Attorney Consulting $161,020 (up $134,871 or 515.8%) o Vehicle Leases $304,050 (up $69,267 or 29.5%) o Utilities – Electric $750,400 (up $242,400 or 47.7%) o Utilities – Natural Gas $278,400 (up $142,075 or 104.2%) • Capital Expenditures – Capital expenditures include fixed asset items such as buildings, equipment, furniture, and vehicles. Total capital expenses for 2026 is $3,095,045 versus $2,591,310 for 2025. This represents a $503,735 (19.4%) increase. The following major items are included within the 2026 budget: o Highway equipment $1,110,000 which includes one six-wheel chassis $180,000, two ten-wheel chassis $380,000, two ten-wheel bodies $300,000 and a CAT excavator $250,000 (up $195,000 or 21.3%) o CHIPS equipment is $145,000 which includes a six-wheel truck body (up $20,000 or 16%)
TOWN OF WEBSTER 2026 BUDGET MESSAGE o Sewer collection system improvements $660,000 which includes a camera van $84,000, a Ford F-150 pickup truck $57,000, replace electrical at Millcreek pump station $138,000, control panels at five pump stations $81,500, pump replacements at three pump stations $71,000 and replacement of five discharge manholes $200,000 (up $190,900 or 40.7%) o Wastewater treatment plant equipment $181,500 which includes overhead cranes $12,000, a loader forklift $128,000, a vehicle maintenance lift $19,000 and other small equipment items $22,500 (up $110,508 or 155.7%) Debt Service – The 2026 budget includes a significant increase in debt service costs. In August of 2025 the Town renewed the 2024 bond anticipation note (BAN) and issued a serial bond. The borrowing totaled $101,141,000 to fund the Highway Building project ($24,250,000), Sandbar Park project ($3,706,000), the Wastewater Treatment Plant Phase II project ($66,400,000), the Vosburg Pump Station project ($380,000) and a serial bond for the Tebor Road to Phillips Road Conveyance Pipe project ($6,405,000). The BAN is a one-year loan which is based on projected cash flow requirements for each project. The Town’s debt sale was very competitive, which resulted in a $1,276,292 premium paid to the Town and a net interest rate of 2.6662% on the BAN and 4.4529% on the bond. This is thanks to the Town’s excellent Aa1 bond rating. When the BAN matures the premium will be recognized as revenue in 2026 which will partially offset the gross interest charge. The bond will be repaid in 9 years and will be reimbursed by Coca Cola fairlife at a rate of 96%. The Town’s net debt service payments for 2026 will total $6,230,728 versus $5,271,174 for 2025. This represents a $959,554 (18.2%) increase.
TOWN OF WEBSTER 2026 BUDGET MESSAGE NYS Tax Cap The Town operates within the New York State tax cap guidelines which include all operating funds and special districts. It is driven by two factors which include the tax base growth factor (1.0091 for 2026) and the allowable levy growth factor (1.02 for 2026). According to the calculation, the Town’s tax levy is limited to $22,861,250 for 2026. The Preliminary Budget is $22,855,143 which is $6,107 below the cap. The year-to-year increase is $645,202 which represents a 2.91% change. The tax levy for 2026 versus 2025 is as follows: Operating Funds Fund General – Town Wide General - Part Town Highway – Town Wide Highway – Part Town Total Operating Funds
2026 Tax Levy 16,532,563 0 1,303,639 0 17,836,202
2025 Tax Levy 16,067,599 0 1,169,498 0 17,237,097
Net Change 464,964 0 134,141 0 599,105
Sewer Fund Cost Center O&M Rent Capital Charge Total Sewer Fund
2026 Tax Levy 2,536,444 1,486,549 4,022,993
2025 Tax Levy 3,224,144 679,167 3,903,311
Net Change -687,700 807,382 119,682
Special Districts Fund Drainage District Lighting Districts Park Districts Sewer Districts Water Districts Total Special Districts
2026 Tax Levy 709,806 78,200 113,865 40,501 53,576 995,948
2025 Tax Levy 787,655 35,400 120,279 68,181 58,018 1,069,533
Net Change -77,849 42,800 -6,414 -27,680 -4,442 73,585
TOWN OF WEBSTER 2026 BUDGET MESSAGE Other Funds There are three other funds which do not require a tax levy. The Debt Service Fund which is utilized to offset the cost of serial bonds, the Webster Public Library which is funded by the General Town Wide Fund and the Parkland Trust Fund which is financed by parks and recreation fees. Grand Totals Fund Category Operating Funds Sewer Fund Special Districts Grand Totals
2026 Tax Levy 17,836,202 4,022,993 995,948 22,855,143
2025 Tax Levy 17,237,097 3,903,311 1,069,533 22,209,941
Net Change 599,105 119,682 -73,585 645,202
Tax Rates Since the Town contains the Village of Webster, there are two different tax rates that apply to the residents. A Village resident pays the tax rate derived from the tax levy within General Town Wide and Highway Town Wide Funds. These funds pay for services which benefit all Town and Village residents. A resident who lives outside of the Village pays the tax rate derived from all four operating funds. For 2026 and 2025 the Town utilized sales tax revenue and appropriated fund balance to lower the part town tax rate to zero. Therefore, the rates are the same for Village and outside the Village residents. The estimated tax rates for 2026 compared to 2025 are as follows: Fund Village Property Town Outside of Village
2026 Tax Rate 5.52 5.52
2025 Tax Rate 5.39 5.39
Net Change .13 .13
TOWN OF WEBSTER 2026 BUDGET MESSAGE Wastewater Treatment The Sewer Fund provides wastewater collection and treatment services to the residents who live outside of the Village. There is an operation and maintenance (O&M) rate which is paid by the 15,429 residents who own a home that is connected to the Town’s sewer system. This O&M rate covers the cost to run the collection system and the wastewater treatment plant. There is also a capital charge which is paid by 15,809 residents who are connected to the system or have a collection line running in front of their home. The capital charge rate pays for capital reserve contributions, equipment, treatment plant upgrades and debt service from capital projects. The estimated sewer rates for 2026 compared to 2025 are as follows: Sewer Charge O&M Rate Capital Charge Total Sewer Charge
2026 Sewer Rate 164.40 94.03 258.43
2025 Sewer Rate 209.45 43.28 252.73
Net Change -45.05 50.75 5.70
An average home outside the Village has a $178,000 assessed value. If it is connected to the sewer system, the following amounts will be paid:
Town Property Taxes Sewer O&M and Capital Charge Totals
2026 $982.56 258.43 $1,240.99
2025 $959.42 252.73 $1,212.15
So, the aggregate tax bill for an average home outside of the Village of Webster will go up $28.84 or 2.4%.
TOWN OF WEBSTER 2026 BUDGET MESSAGE Revenue The Town benefits from several significant revenue sources other than property taxes. The material revenue categories are as follows: • • • • • • • • • •
Cablevision Fees $450,000 Recreation Programs, Fitness Memberships and Classes $1,102,600 Lodge Rentals $130,000 Mortgage Tax $1,000,000 Sales Tax $6,700,000 Building Permits $120,000 Consolidated Highway Improvement Program $595,000 NYS & Monroe County Contracts $770,000 Parkland Trust Fund - Park & Recreation Fees $70,000 Commercial Sewer Charges and Entrance Fees $6,207,249
This budget includes increased wastewater treatment revenue from commercial sewer charges, debt reimbursement and fees for treating high strength organic waste. The three categories are up at an aggregate of $1,968,827 (46.5%) year to year. Even though debt service cost has increased substantially within the Sewer Fund the revenue generated from the wastewater treatment business has outpaced the cost by $2,429,261 (96%) during the past three years, as illustrated below: DESCRIPTION Debt Service Cost Business Revenue
2024 $1,734,478 $1,246,406
2025 $2,836,043 $4,238,422
2026 $4,266,060 $6,207,249
3 YEAR DELTA $2,531,582 $4,960,843
The Town is expecting debt service cost to stabilize and for revenue to continue to grow. Thanks to this trend, the Town has been able to budget for a $400,000 contribution to the Sewer Capital Reserve in 2026.
TOWN OF WEBSTER 2026 BUDGET MESSAGE Interest Revenue The Town invests its’ excess cash in fully collateralized investments which include US Treasury Bills, US Treasury Notes and Certificates of Deposit. The amount of expected interest revenue has been increased across all funds. It’s at $575,232 for 2026 versus $553,982 for 2025. Interest rates are expected to remain in the 3.80% to 4.00% range for year. The Town is fortunate to have accumulated surplus from prior years, which is available to stabilize the tax rate. The 2026 budget includes appropriations from fund balance that total $6,008,158. This includes $4,583,500 from the operating funds and $1,424,658 from the remaining funds and special districts. The Town has a fund balance policy which requires the major funds to keep fund balance within a range of 15% to 50% of operating expenses. At the end of 2024 the Town had two funds that exceeded the range. A long-term plan is being implemented to utilize the surplus to stabilize the tax rates and bring unappropriated fund balance back in line. Overall, the 2026 budget is fiscally sound despite increased debt related to the various capital projects that are underway. A material amount of increased spending has been offset by revenue growth which is directly attributable to the wastewater treatment plant capital project. The Town officials are working together to project the Town’s financial position into the future so that revenue and expenses can be effectively managed beyond the one-year window of the budget process. We are pleased to say that the Town has been able to stay under the New York State tax cap, while continuing to provide the same level of service to the citizens.
Thomas J. Flaherty
Paul S. Adams
Town Supervisor
Director of Finance