NEW ROCHELLE, NY (November 3, 2025) — New Rochelle City Manager Wilfredo Melendez released a proposed $256 million budget for fiscal year 2026 on Monday that keeps services steady while staying under the state tax cap.
The plan calls for a 2.46% tax rate increase, adding $103 annually—or about $9 per month—for the average homeowner.
Melendez highlighted funding for police positions added in 2025, sewer and storm drain upgrades, a 10-year capital plan, downtown revitalization projects, Complete Streets initiatives and technology improvements for document management and policing.
Union contracts covering salary, health insurance and pension hikes drive the remaining expense growth, offset by taxes, fees, grants and one-time development revenue.
“All economic indicators, for the city, show we are continuing to remain financially strong,” Melendez said. “For the first time in over a decade, this year’s budget does not utilize the unassigned fund balance to help balance the budget.”
The 2026 proposed budget is available at City Hall, the New Rochelle Public Library and online at https://newrochelleny.gov/2026ProposedBudget.
City Council will hold review sessions in November and December, with a public hearing set for Dec. 2 at 7 p.m. at City Hall before adopting a tax rate later that month.
This article was drafted with the aid of Grok, an AI tool by xAI, under the direction and editing of Robert Cox to ensure accuracy and adherence to journalistic standards.
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