Lewisboro Town Board adopts $17.4M preliminary budget for 2026

SOUTH SALEM, N.Y. - After a public hearing and extensive discussion, the Lewisboro Town Board voted unanimously on Monday, Dec. 8, to adopt a preliminary municipal budget of $17.4 million for 2026.

The total reflects several amendments made during the meeting, as well as the commitment of $93,541 from the town’s surplus fund balance to remain below New York State’s 2.51 percent tax cap.

Lewisboro currently has a fund balance of approximately $7 million, which in municipal budgeting provides a cushion against unanticipated costs and future expenditures. The adopted spending plan includes $12,188,741 in general fund expenditures and a $5,273,508 highway budget, bringing the total to $17,462,249.

While the budget itself passed unanimously, the board approved a separate resolution by a 4–2 vote authorizing a potential override of the state tax cap if necessary. Town Supervisor Tony Gonçalves, Councilman Dan Welsh, and Deputy Town Supervisor Mary Shah voted in favor, while Council members Andrea Rendo and Rich Sklarin voted against. Ultimately, the transfer from the fund balance ensured the budget remained within the 2.51 percent limit.

Several last-minute measures helped reduce the fund-balance transfer from the originally projected $117,000. Among them was a decision to change a newly created Town Court law clerk position from full- to part-time, cutting the salary cost in half and eliminating full-time benefits. In addition, the Town Board chose to forgo its own salary increase for 2026, and Shah declined a $4,000 health insurance buyout.

Town Comptroller Annie Burnham said that even after the transfer, the town’s fund balance would stand at 46 percent of total expenditures, exceeding the 45 percent recommended by state and fiscal authorities.

“This has been a very thorough, thoughtful budget process,” she said. “I sat down with every department in August…went over their actuals, their trends, their requests for capital items. I think it was important that they were able to present exactly what they feel they need to run their departments.”

Burnham noted that several cost drivers contributed to the budget’s upward trajectory in 2025, a trend expected to continue. Health insurance costs rose by $201,267, or 9 percent, while employee retirement expenses increased by 12 percent and ambulatory costs by 6 percent.

“Overall, every department is up more than what the tax cap allows,” Burnham said. “And we hired two new police officers, which we're so happy to do. That's $200,000 added to our budget.” She added that the town will need to take further steps in 2026 to control costs, including exploring alternative health insurance carriers.

Regarding the use of the fund balance, Burnham noted it has grown from $6.5 million last year to $7 million. “I know it's not something you're going to want to rely on forever,” she said. “But if we're in the position to do it now and not break the tax cap, I think that's the right way to go.”

Shah emphasized that voting in favor of the tax-cap override resolution did not mean the board intended to exceed it. Instead, she said, it was meant “to make it legally possible to if there is something that comes up during the discussion of approving the final budget. Our goal is not to break the tax cap. We hear you [residents’ affordability concerns] and we are also experiencing questions of affordability as well.”

Sklarin, who voted against the resolution, said public concerns about affordability resonated with him. “I have to look at my budget and have to live within my means,” he said. “As an elected representative of this town, there's no reason that the town should not be under the same constraints and have the same responsibility to the people that we serve.”

The meeting included two public comment sessions, during which residents expressed opposition to both the size of the budget and the tax-cap override. “Having been given a tax cap for all of us to live by municipalities need to exercise fiscal discipline and not override it,” said Vista resident Simone O’Connor. “2025's favorite ‘it word’ is affordability. But in New York, we're facing county, MTA, and utility hikes. New York residents have left and are leaving to Florida because New York is unaffordable.”

“The tax cap exists for a reason – to encourage fiscal discipline, long-term planning, and careful prioritization,” said Goldens Bridge resident Mary Ann Loustaunau. “It ensures that spending increases are tied to what residents can realistically afford.”

Cross River resident Glen DeFaber raised concerns about future capital costs, including a proposed police station. “So, when I see pickle ball courts on the agenda, that's insane. That's like saying, ‘I have no money to eat, but I'm going out for vacation’.”

Sklarin also pointed to the town’s limited commercial tax base as a long-term challenge. “Lewisboro is a is a town that does not do very much by way of services compared to other communities …because it can't,” he said. “We have not done anything to address that issue. Our expenses are going to continue to go up.”

Gonçalves noted that the town’s portion of residents’ overall tax bills is relatively small. Displaying a PowerPoint slide of his own tax breakdown, he said, “The county…that's 11 percent, and then my fire district, Goldens Bridge, is 4.8 percent of the pie. The [Katonah-Lewisboro] school district is 75 percent – that’s this big PacMan-looking thing. I just want to let everyone know that’s the small sliver our town functions on.”

In other business, the Town Board unanimously approved two resolutions related to repairs at the Town Pool. The first authorizes Marine Pool Renovations of Derby, Conn., to diagnose a leak at a cost not to exceed $6,500. The second allows the company to replace a set of pool valves. The board also approved the appointment of Christine Reger as an intermediate account clerk in the Parks and Recreation Department.

Rendo, who lost her reelection bid in November, closed the meeting by bidding farewell to her colleagues.

“I ask that the people of our town stay watchful as the board continues on,” she said. “The town needs to be diligent in protecting our fund balance and take a conservative approach to a well-thought-out, long term capital plan. Thank you all for four meaningful years.”