District Budget

The Fire District’s operational budget year runs from January 1 through December 31. Each year, the District’s operating expenses are funded primarily through property taxes levied on non-tax-exempt properties within the District. Unlike municipalities that may receive revenues from sources such as sales tax, the Fire District has very limited alternative sources of income. In addition, New York State’s property tax cap places limits on the District’s ability to increase its annual tax levy.

Recognizing these financial constraints, the District continues to advocate for the needs of our residents with local, state, and federal officials. We also participate in several statewide fire service organizations that advocate for additional funding opportunities. The District regularly pursues available grant funding to supplement its operating budget and reduce the financial burden on local taxpayers.

In January 2024, District residents approved a referendum authorizing construction of a new fire facility. At that time, the estimated tax impact was $2.15 per $1,000 of taxable assessed property valuation. This estimate was based on borrowing $4,480,000 over a 30-year term at a than available interest rate of 4 percent.

During construction, the project was financed through a temporary Bond Anticipation Note (BAN), which required the District to make interest-only payments while the new station was under construction. As a result, the District’s budgets for the past two years (2025 and 2026) both included these BAN required interest expenses.

Upon completion of construction, the Board of Fire Commissioners formally closed out the project and began the process of converting the temporary BAN financing to permanent serial bond financing. Through competitive construction bidding, project efficiencies, two NYS grants provided by Senator Neil Breslin and Assemblywoman Mary Beth Walsh, and the use of state and federal contracts for goods and services, the District completed the station building project $405,000 below the originally authorized $4,480,000 amount.

As part of the permanent financing process, the District underwent an extensive financial review by S&P Global and received an “A-minus” credit rating. Working with Fiscal Advisors, the District then conducted a competitive bidding process for the permanent serial bond funding.

After reviewing several financing options, the District selected the most advantageous proposal: a 23-year serial bond at an interest rate of 4.67 percent provided by “low-bidder” Greene County Commercial Bank. Although the interest rate affected by global issues was slightly higher than the 4 percent estimate used during the 2023-24 referendum forums, the shorter 23-year repayment period—seven years less than originally projected—will save the District approximately $1.25 million in total interest costs over the life of the financing.

 The final estimated tax impact of the construction project is $2.31 per $1,000 of taxable assessed property value, 16-cents more per $1,000 assessed valuation than the amount estimated at the time of the referendum forums in 2023-24.

The Fire District proposed 2027 annual budget total is $513,054.  The “operational”  only budget is $222,112 - an increase over the 2026 approved operational budget of $4,412.  The permanent serial bond debt repayment related to the new construction increased principal and interest payments will be due beginning in 2027.  The principal portion of the payment due is $105,000; the interest payment portion due is $185,942.

The Board of Fire Commissioners, together with the many dedicated men and women who volunteer their time to protect our community, sincerely thank District residents for their support of this essential building project and its funding. Through careful project management, competitive purchasing, and responsible financing, the District was able to complete this important investment in our community while controlling both construction and long-term financing costs.