Peru’s 2027 Budget Faces Rising Costs, Infrastructure Debt; Tax Levy to Increase
By John T. Ryan
Rising infrastructure costs, mounting debt, and the need to expand Peru’s tax base highlighted the Town Board’s November 5 public hearing on its preliminary 2027 budget.
Supervisor Craig Randall outlined the five town budgets (General, Highway, Water, Sewer, Valcour Sewer), explaining that although some individual budgets are decreasing, the town faces significant financial challenges from road and bridge projects, wastewater improvements, and an anticipated drinking water system upgrade.
Final Budget Meeting November 19
Randall said the preliminary budget will undergo additional adjustments, particularly as more information becomes available about sales tax revenues. The Town Board plans to consider the final budget at a special meeting Thursday, November 19, at 5:30 p.m. Randall emphasized that even after all adjustments, the budget will exceed the State’s 2% tax cap.
General Fund Tax Levy to Increase
The preliminary General Fund budget is about $11,682 higher than this year’s budget, but the tax levy is expected to increase by about $224,000.
Randall attributed much of the increase to lower-than-expected sales tax revenue. The town received approximately $166,656 in 2026, compared with the budgeted $225,000. The preliminary 2027 budget estimates only $125,000. The town is also reducing its planned use of General Fund balances from $200,000 to $100,000.
The projected tax rate is $1.91 per $1,000 of assessed valuation, compared with $1.69 last year.
Randall said credit rating agencies have expressed concern about the town’s growing debt and reliance on fund balances. The town’s credit rating affects the interest rates it pays when borrowing money.
Highway and Infrastructure Debt
The proposed Highway Fund budget is approximately $2.269 million, down about $45,000. Nevertheless, the highway tax levy is projected to increase approximately 1.8%, primarily because of debt associated with recent road, culvert, and bridge projects.
Two bond anticipation notes totaling approximately $7.3 million are expected to be combined into a single 30-year bond in 2027.
Water and Sewer Projects Bring Future Expenses
The sewer budget is projected to decrease by approximately $47,000. However, beginning in 2028, the town will face annual debt payments for its wastewater treatment plant project. A state grant will fund 50% of the project, while the town’s approximately $8 million share will be financed through a 30-year, interest-free loan. The new facility is expected to become operational around December.
The town is also planning a $9.4 million drinking water improvement project to address turbidity problems with its existing surface-water supply. The proposed improvements include a supplemental groundwater source and filtration upgrades. The town anticipates a $5 million state grant, with the remaining $4.4 million potentially financed through a 30-year interest-free loan.
Randall noted that future debt payments could significantly affect water rates. The water system serves approximately 800 customers, while the sewer system serves about 600.
Town Seeks to Expand Housing Opportunities
Randall said expanding Peru’s tax base will be important in managing future expenses. The town wants to encourage additional housing, particularly for young families and seniors seeking one-story homes.
Attracting young families would benefit the school district, while additional senior housing could allow longtime residents to remain in Peru and make their existing homes available to younger families. Randall also discussed pursuing grants for municipal improvements and community projects.
Other Hearing Topics
School Board President Bonnie Barry was the only member of the public to attend the meeting. Barry and board members discussed concerns about electric bicycles and scooters being operated dangerously on town roads, trails, and park property.
Randall suggested additional safety education and cooperation with the school district and Clinton County Sheriff’s Department. Barry also expressed interest in greater cooperation among the Town Board, School Board, and Fire Department on long-term community planning.
Editor’s Note – The Gazette recorded this meeting, asked ChatGPT to summarize it and write a news story based on its summary. Your editor reviewed ChatGPT story, made a few corrections and added clarifying information.
Posted: November 7th, 2026 under Community Events, General News, Northern NY News, Peru News, Town Board News.