Mayor Walsh Proposes FY26 City of Syracuse Budget

Published on April 09, 2025

In The Face of Stagnant Revenue, Mayor Walsh Says 2025-26 City Budget Keeps Expenses Below Inflation And Prioritizes Housing, City Services, Public Safety, and Parks 

Syracuse Mayor Ben Walsh introduced a fiscal year 2025-26 city budget that invests in quality neighborhoods and housing, stronger city services, improved public safety, and better parks. The $348.4 million budget keeps expenses well below inflation and manages revenues that are projected to stagnate in the fiscal year ahead. The Syracuse Common Council begins its annual review of the proposed budget on Thursday.

The spending plan proposes continued funding for the Syracuse Housing Strategies Corporation, the multi-year strategy to help homeowners improve Syracuse’s aging housing stock. It adds additional code enforcement inspectors to enforce safe property conditions and neighborhood quality of life. It also further expands the City’s permit review capacity to support increasing investments in housing and economic development.

The budget funds the reopening of a former city Syracuse Fire Department station near downtown Syracuse and creates a new Syracuse Police program to reduce domestic violence. It upgrades the city’s water infrastructure and expands the use of technology to improve Public Works and Parks maintenance programs, as well as responses to service requests. The plan also includes improvements to city parks facilities, including e-gaming and a new recreation center near the Inner Harbor.

Expenses Climb Against Stagnant Revenue

Major expense drivers impacting the City’s fiscal condition are escalating costs for retirement, medical insurance, salaries and wages. Through cost management, the proposal keeps overall expenses at a 2.2% increase, less than the rate of inflation. The budget forecasts sales tax will be slightly down compared to the prior year following multiple years of steady growth. For the first time in three fiscal years, the budget includes no revenue from American Rescue Plan Act (ARPA) relief. It proposes a 2% property tax rate increase and includes a draw on the city fund balance.

“This is a responsible budget in a challenging fiscal environment for cities. Overall revenue is flat, so we need to manage the expenses within our control,” said Mayor Walsh. “We’re investing city resources in the right places, so that services improve, streets are safer, neighborhoods grow stronger and parks thrive.”

The budget covers the city fiscal year running from July 1, 2025 to June 30, 2026. As required in the City Charter, Mayor Walsh delivered his plan to the Common Council on Tuesday. The Council will act on a final city budget by May 8. Mayor Walsh’s full fiscal year 2026 budget is available for review on syr.gov at goto.syr.gov/2026-proposedbudget.

Fiscal Year 2025-26 City Budget Investments

• $1 million General Fund allocation to Syracuse Housing Strategies Corporation
• Two additional code enforcement inspectors for compliance with property maintenance requirements to improve neighborhood quality of life and safety
• Increased third-party permit reviewers to further accelerate reviews and meet demand for growing investment in Syracuse
• Development of Syracuse Comprehensive Plan 2050 to establish a strategic, community-led vision for future growth and development in our community
• Funding for approximately 800 jobs for summer youth and adult workforce development
• Continue city apprenticeships in Building Maintenance and Trades
• Department of Public Works and Parks staffing for expansion of Geographic Information System (GIS) capabilities to improve responsiveness and turnaround time on service requests and maintenance projects
• Planned 27 miles in road reconstruction
• Planned six miles in sidewalk maintenance and reconstruction
• Restructuring Information Technology, Digital Services and API organizational framework for enhanced project oversight and implementation
• Implement automated school zone traffic enforcement (red light and speed) following launch of bus stop arm enforcement in FY25
• Introduce STRIVE program in City of Syracuse in coordination with Onondaga County to enhance response to intimate partner abuse and domestic violence and better address needs of survivors
• Implement SPD Drone First Responder program
• Funding for new Police Academy classes
• Reopen Fire Station 12 on West Genesee Street near Downtown
• New class of Syracuse firefighters
• Restoration begins of Westminster Park stairs
• Upgrades to Thornden stage and amphitheater
• Renovation of Thornden and Onondaga Pools
• Improvements to Pass Arboretum
• Splash pad water feature at Cummings Field

Property Taxes and Water Rates

The 2% increase in the property tax rate will move the combined rate for City and School taxes to $28.83 per thousand of taxable assessed value. For a property with an assessed value of $100,000, the rate change will increase the annual tax bill by approximately $56.53.

The proposed budget includes a 2% increase in water rates for property owners to offset the rising costs of materials; allow continued investment in water infrastructure; and invest in stable water supply. A typical residential increase will be less than $5 per year. Projects include pump station upgrades and lead service line replacements.

Revenues and Expenses

The City expects additional revenue of about $6.6 million in property taxes, $3.7 million from automated school zone traffic enforcement, and $1.2 million in building and property permits generated by increased construction activity.  It also projects $800,000 from the new hotel room occupancy tax. The 2026 budget is supported by a $2 million services agreement payment to the City by Syracuse University. SU also makes a $500,000 payment to the City to fund the University Neighborhood Agreement Advisory Council (UNSAAC).

The increases are offset by the end of ARPA revenue, a $1.5 million drop in income from city investments due to a decrease in interest rates compared to prior years, and a projected drop in sales tax revenue of $700,000 compared to the prior year budgeted amount.

The budget proposes drawing $27.2 million from the city fund balance. The city’s reserve currently is projected to be at $120 million at end of the FY25 fiscal year. After the proposed draw in 2026, the fund balance will exceed the best practice-recommended municipal reserve level by $35 million.

The budget plan includes no projected increase in State Aid and Incentives to Municipalities (AIM) funding. AIM is the second largest source of revenue to the city. The State provided $5 million in Temporary Municipal Assistance in 2025 and has included the same amount in the upcoming state budget. The base amount for AIM has not increased in 15 years.

Common Council Review

The Common Council Finance, Taxation and Assessment Committee will conduct meetings to review the budget between April 10 and April 29 in the Van B. Robinson Common Council Chambers in Syracuse City Hall.  The Common Council will conduct a public hearing on the budget on April 29. A schedule of Common Council budget meetings is available at this link.