ALLEGANY — The town board approved a $5.91 million budget on Tuesday, setting its spending plan for 2026.

“This budget reflects our continued commitment to responsible fiscal management while maintaining high-quality services and investing in the long-term needs of our community,” said town Supervisor Chris McPherson. “The 2026 budget supports essential operations such as public safety, infrastructure maintenance, recreation, and community development — ensuring that Allegany remains a great place to live, work, and raise a family.

“The Town Board and I extend our appreciation to our department heads, staff, and residents who contributed valuable input throughout the budget process,” he added. “We look forward to another productive year serving the residents of Allegany and building upon the progress we’ve made together.”

The budget rose 4.33% from the 2025 budget. The General Fund A budget was set at $1.54 million, a 2.56% increase; General Fund B at $232,000, a 2.93% increase; Highway Fund A at $1.19 million, an 11.57% increase; Highway Fund B at $1.24 million, a 2.46% increase; no change in lighting at $3,500; $351,400 for sewer services, a 5.21% increase; and $621,000 for water, a 0.07% decrease.

Principal and interest on a bond anticipation note for the highway department rose more than $80,000 in the new budget, up 120% from the previous budget. McPherson noted the BAN increased for the next five years to pay for two new snowplows. No new borrowing for other purchases from any department were included in the budget.

The cost of mandatory contributions to state retirement funds rose 11.1% in the budget, while medical insurance costs rose 7.2%.

Town contracts with outside agencies also increased. The contract with the Cattaraugus County Assessing Office increased from $18,000 to $34,500, the agreement with the village of Allegany for police services rose from $8,000 to $20,000 to cover increased speed enforcement and patrols, and the town’s contribution to the Allegany Public Library rose about $3,000 to $59,832.

The budget calls for $2.54 million in property taxes — an increase of 1.94% over the 2025 budget. The budget is in compliance with the state-mandated property tax cap, McPherson said, which generally limits property tax increases to 2% or the rate of inflation, whichever is lower. Of tax dollars to be collected, $772,194 will be for the general fund, just under $1 million for the highway fund, $761,000 for fire protection, and around $11,000 for lighting and water.

Revenues outside of property taxes rose 1.77% to $4.73 million. However, to limit the tax increase, $447,505 in fund balance was used to balance the budgets — $250,000 for the general fund, and $196,900 for the highway fund. Fees were not increased on town recreation programs, McPherson added.