New Windsor residents will see higher property taxes and water and sewer charges in 2027 after the Town Board unanimously adopted a new budget last Wednesday.

The $64.97 million spending plan is about $7.83 million, or 13.77%, higher than the 2026 budget. Property tax collections will rise by nearly $3.46 million, or 14.95%, to $26.58 million. For a typical single-family home, the town estimates an increase of approximately $265 in town-related property taxes.

Much of the increase is tied to debt payments for improvements to the town’s wastewater treatment plant, along with rising employee costs and expenses to maintain municipal services. Town officials say those financial pressures have made it necessary to exceed New York’s property tax cap.

Debt payments are increasing by $2.88 million or 47.5%, compared with 2026, according to the budget. The largest contributing factor is borrowing associated with the $109.3 million wastewater treatment plant upgrade, which is under construction.

Labor expenses are also rising by $1.23 million or 7.2%, while employee benefit costs will increase by $1.3 million or 10.7%. Spending on contractual operations and maintenance is projected to grow by $1.1 million or 6%, which the town attributes primarily to inflation and increased demand for services and infrastructure as residential and commercial development continues.

The board approved the budget following a public hearing that drew no comments from residents attending in person or online.

Before closing the hearing, Town Supervisor Stephen Bedetti encouraged anyone with questions to contact him directly.

“My cell phone number’s on the internet and my door is always open,” Bedetti said.

What Homeowners Will Pay
The town’s budget includes an illustrative tax bill for a single-family home assessed at $40,000, equivalent to a full market value of approximately $432,900.

For that property, annual town-related property taxes are projected to increase from approximately $2,670 to $2,935, a difference of $264.69, or 9.91%.

Of that increase, approximately $147.95 comes from the general fund, which pays for services such as public safety and general government operations. Highway taxes account for another $32.61, while sewer district taxes add $60.39. Smaller increases are projected for ambulance services, garbage collection and water districts.

The figures do not include Orange County, water and sewer operating funds or fire district taxes. Actual increases will vary depending on a property’s assessed value and the districts in which it is located.

The town’s general fund will grow from approximately $28.4 million to $30.82 million, an increase of about 8.5%, while highway spending will rise by 7.36% to $6.27 million.

Together, those two funds account for approximately $37.08 million of the town’s spending in 2027.

Sewer Spending Drives Budget Growth
One of the largest increases involves the town’s sewer fund, which will grow from approximately $5.77 million to $8.45 million, a jump of $2.68 million, or 46.49%.

The budget also raises the average sewer district property tax rate from $6.82 to $12.86 per sewer point, an increase of 88.56%. The town uses sewer points to calculate assessments, although the amount a property owner pays depends on the number of points assigned to the property.

The budget lists a separate increase in sewer usage charges, which are calculated at a different rate.

The town is also preparing to examine problems that allow groundwater and rainwater to enter its sewer system, increasing the volume of water that must be treated.

During the Nov. 4 meeting, the board authorized an agreement with MHE Consulting Engineers to study these issues in 21 of the town’s 24 sewer districts.

The study will examine infiltration, which occurs when groundwater enters pipes through cracks or other openings, and inflow, which involves rainwater entering through sources such as improperly connected drains.

Bedetti said the town had received additional grants to address these problems.

“They actually free up a lot of gallons for the sewer plant,” Bedetti said, referring to the improvements supported by the grants.

Residents will also pay more for water consumption and sewer service in 2027.

The water rate will increase from $9.22 to $9.56 per 1,000 gallons, or approximately 3.62%. The minimum quarterly water charge will rise from $41.40 to $42.90.

The annual sewer usage rate will increase by 8.64%, from $18.05 to $19.61 per point. For a typical household assessed at 10 sewer points residents will face an annual charge of $196.10, compared with $180.50 in 2026.

Property Tax Increase Exceeds State Cap
Under New York’s property tax cap requirements, New Windsor’s allowable levy increase for 2027 would be approximately $586,547. However, the proposed increase exceeds that limit by about $2.87 million.

The town’s 2027 preliminary budget document states that remaining within the cap would not provide enough money to meet its current and anticipated financial obligations.

Officials identified maintaining municipal services, addressing infrastructure needs associated with population growth and development and preserving the financial reserves to support the town’s long-term stability and Aa3 credit rating as reasons for exceeding the limit.

This would be the second time New Windsor has exceeded the state property tax cap since it was implemented in 2012.

The budget takes effect Jan. 1, 2027.