Rising Insurance and Utility Costs Drive Fulton’s Proposed 5.45% Tax Levy Increase

FULTON – Rising medical insurance, utility and other operating costs are driving a proposed 5.45% increase in Fulton’s 2027 General Fund tax levy, Mayor James Rice said in remarks prepared for the proposed 2027 General Budget public hearing.

Rice said department requests submitted in August initially sought more than $1.1 million in additional appropriations, representing nearly a 12% levy increase. Department heads, the mayor and Common Council worked through October to reduce the proposed year-over-year appropriations increase to $664,867.72, despite working without three department heads during portions of the process.

The mayor identified six principal cost drivers:

• Medical insurance: a 10% increase, or $338,538.61.
• Utilities: a 35% increase over fiscal 2026, adding $124,166 to the General Fund. Across all municipal operations, Rice said utility costs are increasing by approximately $300,000.
• Non-fire and police retirement contributions: an additional $94,214.49, a 30% increase.
• Audit services: an additional $85,000. Rice said the city has engaged a CPA firm and a separate firm to bring its Single Audits current, following findings in a State Comptroller’s report.
• Building and infrastructure repairs: a minimum of $40,000 for the Oneida Street Bridge and anticipated costs of up to $27,000 for the municipal building’s HVAC system.
• Fuel: an additional $41,322, a 21% increase. Rice said fuel costs appear to be stabilizing after placing pressure on the 2026 budget.

Those six areas total $750,241.10 in additional expenses, according to Rice’s remarks—$85,373.38 more than the proposed overall appropriations increase. He credited the work of city officials and staff in containing other costs.

Rice said he hopes the audit work can be completed during fiscal 2027. If revenues or savings become available, he said he would ask the council to continue funding the effort.

The city forecasts a $127,006.54 year-over-year increase in revenue, despite the loss of a $200,000 FEMA Fire Grant and a $43,350 decline in rental permit revenues, Rice said. He credited the council’s work to identify additional revenue sources that could reduce the burden on taxpayers.

The administration had hoped to restore seasonal staffing reduced in 2026 and add support staff in key areas. Rice said existing liabilities and everyday operating expenses continue to make those goals difficult.

“Much like the previous two years, this proposed budget does not adequately address all of our short-term needs or establish the strategies necessary for meaningful long-term planning,” Rice said in his remarks. “That remains a challenge before us.”

Rice acknowledged the impact of the previous year’s budget on taxpayers and said city officials did not wish to impose another levy increase. He welcomed constructive discussion and suggestions from residents and businesses.