Mayor's spending plan drops tax rates, increases salaries Beacon Mayor Lee Kyriacou introduced his 2027 budget proposal on Monday (Oct. 5): a $39.5 million spending plan that cuts the residential property tax rate for a sixth consecutive year. The City Council will hold a public hearing on Nov. 2. The budget must be adopted by its last meeting of the year, on Dec. 21, but is typically approved before then. Speaking to the council on Monday, Kyriacou highlighted what he said are three major components of the plan: "significant" salary increases for city employees, including "comparative survey-based" increases for managers; an increase in spending on emergency services after the city's contract with Ambulnz expires on Dec. 31; and what the mayor said could be "modest" tax increases despite a drop in residential and commercial tax rates. That could happen because residential assessments in Beacon have more than doubled in the past decade, to $1.9 billion, including $270 million in new construction. That growth lets the city cut its tax rate — the proposal for 2027 is $5.43 per $1,000 of assessed value, a 1 percent decrease — while collecting the revenue needed to pay employees and provide services. Despite the lower rate, if the 2027 budget is approved as proposed, city officials estimate the owner of a $525,000 home (which has risen in value by 5 percent over last year) will see property taxes increase by 3.9 percent, or about $108. Property values have also increased on the commercial side. Although non-homestead properties are not assessed every year, their values have more than doubled in a decade, to $486.8 million. The proposed commercial tax rate for 2027 is $8.25 per $1,000 of assessed value, a 5.3 percent decrease. The owner of a $500,000 commercial parcel with a flat assessment would see a 5.3 percent decrease, or about $230 less, the same percentage as the reduction in the tax rate. Kyriacou said that, as property values have grown, the tax rate in Beacon compares favorably to the only other city in Dutchess County. "The City of Poughkeepsie tax rate is over $10 [$10.46]," he said. "Ours is $5.43 this year. We used to be roughly the same." Beacon's budget is broken into a general fund ($29.5 million in 2027) and water ($4.4 million) and sewer ($5.5 million) funds. Water rates will not change in 2027, but sewer fees, which are included in water bills, will rise 10 percent. The budget proposes a $14.5 million levy, a 4.8 percent increase over 2026. The levy is "at cap," meaning as proposed it does not exceed a mandatory limit set by New York State. The largest revenue sources for the city are property taxes (37 percent), water/sewer fees (19 percent) and sales taxes (17 percent). Sales-tax income is projected to increase by $340,000, to $6.8 million. A hotel occupancy tax should generate $210,000, with most coming from the Mirbeau Inn & Spa, which opened in May. In the spending columns, the Police Department accounts for 22 percent, followed by employee benefits (15 percent) and sewer service (14 percent). Under Kyriacou's proposal, spending on ambulance service could nearly double, with a $450,000 placeholder in the 2027 plan as the city negotiates with providers. Other increases include health and dental insurance for employees ($246,000), contractually negotiated salary increases for firefighters ($268,000) and police officers ($230,000) and the cost of hauling sludge from the wastewater treatment plant ($225,000). No new positions are proposed. The budget would use $275,000 in savings, an 82 percent increase over the $151,412 allocated in 2026. On Monday, Kyriacou acknowledged the recent departure of Human Resources Director Sara Morris for a higher-paying job. The salary increases in his 2027 budget, as well as a provision approved by the council to allow mid-year increases, "will make it easier to retain our good employees," he said. After a public hearing, the City Council decided on Monday to table a vote to ...