THOMPSON — The Town of Thompson is proposing $20.2 million in spending across its four main budget funds for 2027, a 25 percent increase over this year, but Town Supervisor Scott Mace said much of the additional spending is tied to a new swimming pool and other one-time projects.

The preliminary figures increase spending in those funds from approximately $16.2 million in 2026 to $20.2 million next year. However, the proposed property tax levy, the amount the town collects from property owners, would increase by approximately $189,000.

Mace said the main operating funds would see more modest increases, ranging from 3 to 5 percent, aside from the larger projects.

“If you take all that out, we’re about 3%,” Mace said.

One of the biggest expenses is a proposed $2.75 million swimming pool project. Mace said the town received a $2.2 million grant and plans to contribute approximately $500,000 in work performed by town employees.

The budget also includes $490,000 for improvements to the Jefferson Street Highway Department facility, which Mace said has needed roof repairs for years.

Another concern is the town’s declining fund balances, money set aside from previous years that can help cover expenses and avoid tax increases.

Mace said previous budgets relied on those reserves, including money generated by Resorts World Catskills.

“We’ve had decreases for a bunch of years, but we’ve been spending from the fund balance,” Mace said.

The proposal also includes 3 percent salary increases, including for the supervisor and Town Board. Rising health insurance, retirement benefits, fuel and construction costs are contributing to higher expenses.

Casino revenue continues to play an important role in town finances, although Mace said recent payments have declined.

“It’s a good budget. It’s a tight budget,” Mace said.

The Town Board will hold a public hearing Wednesday, Nov. 4, at 7 p.m. at Town Hall in Monticello.

According to Mace, the preliminary budget will be available for public review on the town’s website, thompsonny.gov, beginning Friday, Oct. 30, giving residents an opportunity to review the spending plan before the hearing.

Mace said if no major issues arise during the hearing, the board expects to adopt the budget that same evening.