Town Board Workshop
Town Board Minutes 2025.10.16

Minutes

October 16, 2025 · 15 min read · extracted text · View original

Webster Town Board

October 16, 2025

A workshop meeting of the Webster Town Board was called to order by Supervisor Flaherty at

7:00 p.m. at the Webster Town Board Meeting Room, 1002 Ridge Road, Webster, New York,

with the following officials present:

Supervisor ................................................................................ Thomas J. Flaherty

Councilwoman ........................................................................... Patricia T. Cataldi

Councilman....................................................................................... John J. Cahill

Councilwoman ............................................................................ Ginny L. Nguyen

Attorney for the Town .........................................................................Kyle Taylor

Town Clerk .................................................................................. Danene M. Marr

Absent:

Councilwoman...........................................................................Jennifer S. Wright

Department Heads Present:

Finance Director ..................................................................................Paul Adams

***

Paul Adams, Finance Director, provided a summary of the following Town of Webster 2026

Budget Message that appeared in the October 8, 2025 edition of the Webster Herald.

TOWN OF WEBSTER

2026 BUDGET MESSAGE

The Town of Webster began the 2026 budget season in early May 2025. 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:

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Webster Town Board

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%

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 are as follows:

Employee Compensation

The Town employees fall into five groups which include the nonunion 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.

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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.

•

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:

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Assessing Revaluation $264,000 (up $219,000 or 486.7%)

CHIPS Road Materials $450,000 (up $200,000 or 80%)

Drainage System Materials $315,000 (up $100,000 or 46.5%)

Engineering Surveying $100,000 (up $95,000 or 1,900%)

Insurance Premium $566,000 (up $131,000 or 30.1%).

Town Attorney Consulting $161,020 (up $134,871 or 515.8%)

Vehicle Leases $304,050 (up $69,267 or 29.5%)

Utilities

Electric $750,400 (up $242,400 or 47.7%)

Utilities

Natural Gas $278,400 (up $142,075 or 104.2%)

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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%)

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.

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:

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Operating Funds

Fund

General

Town Wide

General

Part Town

Highway

Town Wide

Highway

Part Town

Total Operating Funds

2026 Tax Levy

16,532,563

2025 Tax Levy

16,067,599

0

1,303,639

0

17,836,202

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

1,169,498

0

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:

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Webster Town Board

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

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%.

Revenue

The Town benefits from several significant revenue sources other than property taxes. The

material revenue categories are as follows:

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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 $6,305,579

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Webster Town Board

This budget includes increased wastewater treatment revenue from commercial sewer charges

and fees for treating high strength organic waste. The two categories are up at an aggregate of

$1,935,472 (179.4%) 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 $2,460,091 (97.2%) during the past three years, as illustrated below:

DESCRIPTION

Debt Service Cost

Business Revenue

2024

$1,734,478

$1,313,906

2025

$2,836,043

$4,357,117

2026

$4,266,060

$6,305,579

3 YEAR DELTA

$2,531,582

$4,991,673

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.

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.

***

There being no further business to come before the Board, the meeting was adjourned at

7:26 p.m.

____________________________________

Danene M. Marr, Town Clerk

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