Revenue isn't keeping pace with the community's needs or inflation.
Albany is growing—and our needs are growing with it. Over the past 20 years, our population has increased by 39%, and we now serve nearly 58,000 residents. Projections show that number will rise to over 71,000 by 2045.
This growth brings more than just new homes and neighborhoods—it brings:
- More 911 calls for police and fire
- More infrastructure to maintain
- More people in our parks and libraries
- More community needs that require responsive, reliable public services
But while demand has gone up, revenue has not kept pace. At the same time, inflation has sharply increased costs—from fuel and building materials to salaries and utility bills. Like any household, the City is paying more for everything.
Additionally, the City is facing significant operational challenges:
Staffing shortages and turnover
Our workforce is nearly the same size it was during the Great Recession—yet serving thousands more people. At the same time, the City will see nearly 25% of its workforce retire in the next biennium. This exit of knowledge and experience puts a strain on the ability to deliver quality services in a timely manner.
Deferred maintenance
Putting off routine repairs to save money ends up costing more later, but has been done to ensure core services such as public safety could continue to operate.
Outdated technology
Many systems still rely on manual processes or aging software. We haven’t had the resources to invest in automation that could improve efficiency and reduce costs over time. Instead, the City focused on front-line positions, particularly in public safety, to address the growth needs heard from the community. This budget marks a shift to addressing these long-term costs in order to give residents better service and more for their dollar.
New mandates
State and federal requirements around housing, emergency response, reporting, and environmental protections continue to increase workload—often without new funding.
Unlike other levels of government, cities are legally required to adopt and operate within a balanced budget.
That means if revenue doesn’t keep up with costs, we must either reduce services or identify new funding sources. These are hard choices. Cutting services would affect residents who depend on City programs, but increasing fees can be difficult for households already feeling economic pressure.
Creating the City Services Fee
In June 2021, after several years of cost-cutting and streamlining, the Albany City Council created the City Services Fee. This fee was implemented to prevent further reductions to core services that residents rely on and value—such as:
- Police and fire protection,
- Parks and recreation, and
- Library operations
Why was the fee increased in 2025?
In 2025, the City Council approved the first-ever increase to the City Services Fee after an in-depth, months-long review. This increase was designed to:
- Maintain service levels that would otherwise erode due to inflation and increased costs
- Invest in long-term cost-saving strategies to improve efficiency and sustainability
- Create capacity to diversify revenue sources, reducing overreliance on property taxes and fees
- Support community priorities, including:
- Increased parks maintenance
- Addressing homeless encampments and public space impacts
- Expanding public safety to match population growth
- Infrastructure maintenance and improvements
- Keeping libraries open and fully functioning
This increase helps ensure Albany can continue providing the safe, reliable, and high-quality services that our residents expect—now and into the future.
To learn more, visit: City Services Fee Overview & FAQs
While we're continually looking for efficiencies, it was not enough to close the gap.
At the City of Albany, fiscal responsibility is one of our seven core values—and we take it seriously. From department directors to front-line staff, every City employee understands the importance of being a good steward of public resources. We are constantly working to make your dollars go further by:
- Using new technologies to streamline services
- Rethinking how programs are delivered
- Implementing energy efficiency and conservation strategies
- Charging user fees where appropriate
- Leveraging volunteers, sponsorships, and grants
Despite these ongoing efforts, efficiencies alone were not enough to close the growing gap between service needs and available revenue.
Behind the Numbers: Thoughtful, Transparent Budgeting
As part of the 2025–2027 budget process, City staff engaged in extensive internal review and cost analysis to make sure any fee increases were justified, strategic, and as minimal as possible.
- Initially, the City identified $12 million in unfunded operational needs. Fully addressing these would have required raising the City Services Fee to $28.86 per month for single-family homes.
- Instead of passing that full burden on to residents, staff spent over 1,500 hours reviewing priorities, adjusting work plans, redesigning processes, and exploring alternative funding sources.
- Through that process, we were able to cut the proposed fee nearly in half—recommending a more measured increase to $14.82, with a modest annual inflation adjustment to prevent sudden jumps in the future.
This fee helps maintain the services our community depends on while continuing our long-term work to make city operations more sustainable and cost-effective. This is not just about balancing a budget—it’s about balancing values:
- Delivering the services our community has said are important to them
- Doing so efficiently, responsibly, and transparently
- And building a city where resources are aligned with resident needs—now and into the future
To learn more about the City’s budget, please visit our page here.
