The Pelham operating budget and budgeted tax levy represent different aspects of the Town’s finances.   The tax levy is the plug that the Town sets to balance the budget.  No deficit.  No surplus.  It is also the property tax charged to residents.   The operating budget is reviewed here in a separate article: Pelham Operating Budget

The tax levy has increased 7% each year from 2023 to 2025.  This is a combination of reoccurring assessment and new assessment (growth) taxes.  

Surpluses are the excess collection of property taxes less the town's expenses.   The surpluses vary year by year from a low of $4.7 million just declaed for 2025 to a high of $9.2 million for 2023.

The really startling fact to understand here is these surpluses have not been minor numbers.  They are quite large.  In 2023 over half the Pelham property taxes collected ended up not being used in the year.

Around 45% of the tax levy for 2022 and 2024 was not used and for 2025 23% of taxes collected not used.   These surpluses had been transferred to the accumulated surplus account.  Read these articles to learn about surpluses and accumulated surpluses.

It would be reasonable to have some level of consistent surpluses as provincial legislation requires the avoidance of deficits.

These levels of surpluses are not acceptable. If the Town approves a budget and subsequent tax collection it needs to execute on its plans for the good of the community. 

Deviations from plan that result in surpluses or deficits need to be explained to the community in a transparent and accountable manner.   Simply taking pride in that, we have healthy surpluses may be more a reflection of luck, artful budgeting and over taxation rather than good management.    

If we need to “tax in advance” then the Town needs to better its efforts (transparency and communication) in to justifying why the extra tax is necessary.