Tentative City of Cortland Budget Looks to Raise Property Taxes by 4%

City of Cortland Mayor Scott Steve has revealed the 2026 tentative budget for the City of Cortland along with the next steps needed to finalize the budget. According to Steve, a critical review was conducted with the Director of Administration and Finance for the City of Cortland, Elizabeth Greenwood, who assisted in shaping the budget.

The 2026 tentative budget for the City of Cortland looks to maintain all city services and will have all departments fully staffed. The proposed budget also includes a 4% property tax increase and will keep water and sewer rates the same.

Reasoning why a 4% property tax increase was cited due to rising retirement costs, workforce expenditures such as wage increases from collective bargaining agreements, limited revenues, and quality of life investments. Mayor Steve noted both the City of Cortland Police & Fire Departments are fully staffed for the first time ever, he says.

Mayor Steve says steps have been taken to reduce cost burdens on the city, including healthcare costs. The proposed budget includes new options for health insurance that would “substantially reduce healthcare costs” through all departments within the city. Savings for active employees would amount to just under $860,000 and for retirees, just under $2.2 million dollars. The savings in total for the city would be around $3.05 million.

The City of Cortland will also continue to work on operational efficiencies and centralized purchasing. Some of the measures Mayor Steve says the city has worked on include spending controls with 2025 spending below budgeted levels, the city transitioning from an inefficient purchasing system to a centralized model in the financial department. This move will help the city save $7,000 a year on paper and copier services. Cortland will also adjust its fee schedules to allow the fee to reflect the actual cost of services provided.

With the proposed 4% property tax increase, residents will see an increase around 48 cents annually for each $1,000 of assessed value. For a home assessed at $145,000 in the City of Cortland, projected property taxes will increase by $70 to an annual tax total of $1,806.

Water & Sewer funds will remain unchanged for 2026. The City of Cortland will hold budget review meetings beginning next week. All meetings are open to the public.