Pelham Operating Budget

The Pelham operating budgets are the net expenses and miscellaneous revenues before  property tax revenue.  It is the planned operating spending of the Town. 

Increased growth, like new homes, will increase our operating costs (ie snowplowing and other services).  The Town budget covers salaries, wages and benefit's, supplies, contract services, etc.  

Inflation needs to be allowed for.  The consumer price increase (CPI) has been much less than the spending increases by the Town.  

Planned spending for 2026 is $21.8 million dollars being an 6.7% increase above the planned 2025 spending.  

These type of annual increases have been chronic for the past four years.

The spending budget is the major driver to what appears on your property tax bill.

2026 Operating Budget Breakout

The danger in small numbers

Reserves and Deferred Revenue

The following is drawn directly form the Town of Pelham 2026 Approved Operating Budget, page 5,6.  Paraphrased for brevity.

  The Town’s operating budget includes reserve transfers, which are used to fund capital projects and other significant expenditures.   The Town’s reserve policies outline an approved plan that the Town needs to follow.  It has phased in targets and reserves (taxes) which must be increased sufficiently to reach minimum target balances by 2039.

The 2026 budget includes an $310,000 increase to the capital reserve contribution of 1.5% of the tax levy.  The capital is one of the largest items impacting the tax levy.

Tax Levy Increases

Hospital                                                             0.43%

Capital increase - Reserve transfers            1.49%        

Operating budget increase net of

reserve transfers                                              2.01%

                                                                                       3.50%    

Less Assessment growth                                  2.69%    

Operating plan / non tax revenues                          6.19%    

Capital increase - Reserve transfers                1.49%    

What is the total capital reserve number not just the increase

Operating budget increase net of

reserve transfers, exclude growth                     4.70%    why is this so much greater than inflation

                                  Assessment Growth                -2.69%     

                                 Hospital Contribution                0.44%    

                                                                                                  3.94%    

Your Property Tax Bill
and other comments

2026 taxes for the Region, Pelham incudes Hospital, and Waste increased 4.7% over 2025.  Previous year increases have been: 2026   4.7%,   2025   6.8%,   2024   4.6%,   2023   7.3%,   2022   3.0%,    2021    1.8%.

2026 taxes for Pelham increased 3.5% over 2025.  Previous year increases have been: 2025   4.8%,    2024   4.2%,    2023   5.4%,    2022   3.2%,     2021    1.8%.

Your Tax Bill split, Region 45%, The Town 45% and 10% for Education.

Our Mayor will soon represent 90% of your tax bill.

Inflation (CPI) was 2.3% at January 2026, previous years were 2025  1.9%, 2024  2.9%, 2023  5.9%, 2022  5.1%, 2021   1.0%.  Inflation was high in 2022/2023 due to covid and supply chain problems.  It has lessened since then and appears to be running between 2 and 3%.

Increases in assessment in Pelham from growth (new homes, etc) has the effect of lowering your tax bill by spreading out spending amongst more new tax payers.   If all other spending was held flat you would see a decrease in your tax bill.  Unfortunately inflation drives up the town spending budget which drives up your property tax bill. 

Total Pelham assessment value used in setting the 2025 property tax levy was $3.201 billion dollars.  The assessment value used for setting the 2026 levy is $3.286 billion dollars.  This is an assessment growth of $84.9 million or 2.65%.   Using the assessment values we can say Pelham grew 2.65% in 2025.  This provided us a property tax leverage of $542 thousand (Pelham spending only) which should offset any planned increase in budget spending. This lowers your property tax bill

Focusing on 2026 the simple math shows

Pelham planned increase in spending.      6.7%

Offset by growth of approximately              2.7%

Expect to see around                                     4.0%

Property Tax Levy you are seeing.                3.5%

The graph details out the actual increases I have seen on my own personal property tax bills over the recent past, excluding education levies..  You should have all seen the same increases.  (unless your assessed values changed)