At a glance
The Council voted 5-5 on the 2026 budget, which means it failed to pass. Under the city charter, when the Council does not act on a budget within 20 days of its submission, the budget is automatically approved. The budget raises property taxes by 3.9 percent and draws $385,000 from the fund balance. A procedural error cut funding for a filled position in the youth department; members said they would restore it through a budget amendment in December.
Roll call and introduction of budget resolution
President Morris called roll and introduced the resolution to approve the 2026 budget. The only business on the agenda was approval of the budget for January 1 through December 31, 2026.
Key points
- All council members were present.
- The budget resolution was the only item on the special meeting agenda.
- Morris opened the floor for discussion.
Council President Morris opposes the budget
Morris said she would vote no. She said the city has dipped into the fund balance for two years in a row, raised taxes last year and again this year, and needs to bring revenue and spending into alignment.
Key points
- Morris said the city used COVID relief funding in prior years to avoid drawing from the fund balance, but is now drawing down reserves.
- Taxes were raised last year and are being raised 3.9 percent this year.
- Morris said revenue projections have been more optimistic than actual results, and the city is not on a sustainable trajectory.
- She said the Board of Estimate and Apportionment should have held a second round of hearings with departments after deciding to freeze vacant positions, so departments could review the final budget before it reached the Council.
Morris said the city drew $800,000 from the fund balance in 2024, and actual 2025 revenues fell short of projections, meaning the draw is likely higher this year.
Youth department position cut by error
Morris explained that a hiring freeze eliminated all vacant positions citywide, including two in the youth department. One of those positions is actually filled, not vacant. The budget document submitted to the Board of Estimate and Apportionment incorrectly listed it as vacant.
Key points
- The Board of Estimate and Apportionment implemented a hiring freeze on vacant positions as part of the budget process.
- The youth department budget submitted to the board listed two vacancies; in fact, only one position was vacant.
- The board eliminated both positions under the freeze, which removed funding for a current employee.
- Morris said the board should have circulated the revised budget to departments before sending it to the Council, which would have allowed the error to be caught.
- Under the city charter, the Council can only reduce budget line items, not increase them, so the position cannot be restored at this stage.
Several members said they would restore the position through a budget amendment in December.
City Attorney explains Council's limited budget powers
City Attorney Crystal Tipton said the charter gives the Council 20 days to approve or amend the budget by reducing line items. The Council cannot increase the budget or send it back to the Board of Estimate and Apportionment. If the Council does not act within 20 days, the budget is automatically approved.
Key points
- The Council's powers are defined by the city charter and are limited.
- Once the mayor's budget is presented to the Council, the Council has 20 days to approve it or reduce line items.
- The Council cannot increase the budget or reject it and send it back.
- If the Council does not act within 20 days, the budget is automatically approved.
- The only way to restore the youth department position is through a budget amendment after the budget takes effect.
Clarification on the youth department positions
Youth Director Kamal Lewis clarified that the athletic director position listed as vacant is a new title that has not been approved by civil service. There is no one currently in that role. Treasurer Tom DePietro said a current employee's name and title were removed from the youth department budget submission, which is why funding for that person does not appear in the budget.
Key points
- Lewis said the athletic director position is new and has not been created through civil service; no one is filling it.
- The hiring freeze correctly applied to two vacant positions in the youth department.
- DePietro said a current employee's name and title were omitted from the budget submission, which removed their salary from the budget.
- The two positions at issue are the new athletic director title (vacant and not yet created) and the current employee whose salary was omitted.
The transcript contains overlapping statements about which position is vacant and which is filled. The statements from Lewis and DePietro clarify that one position is a new title not yet approved, and one is a current employee whose salary was omitted from the submission.
Discussion of fund balance and revenue projections
Council members discussed the fund balance draw, revenue shortfalls, and the difficulty of making budget changes under time pressure. Dewan Sarowar said everyone should take responsibility for budget decisions. Dominic Merante asked whether delaying the vote would allow time to find budget cuts to offset the youth department position.
Key points
- Sarowar said the fund balance is affected by Council votes, rising costs for insurance and road salt, and post-COVID cost increases.
- Sarowar said the city has done many projects and faces a combination of factors beyond its control.
- Several constituents emailed Sarowar opposing the budget; Sarowar suggested taking another week or two to review it.
- The 20-day deadline is Sunday, so additional time would not change the outcome.
- Merante asked whether the Council could identify budget cuts now to fund the youth department position without drawing more from the fund balance.
Possible budget amendments and revenue sources
President Morris said several revenue sources could materialize in 2026: the finance committee's fee schedule, parking enforcement by the police department, building permits for projects in the pipeline, and the sale of the Dunn warehouse. Council members discussed whether to reduce a line item now or wait until December to amend the budget.
Key points
- Morris said the finance committee has not completed a fee schedule in 10 years, but one is expected.
- Parking enforcement is expected to resume within a couple of months.
- Several building permits for large projects are in the works.
- The sale of the Dunn warehouse could bring significant revenue.
- Council members debated whether to cut a line item now (which would return money to the fund balance) or approve the budget and amend it in December.
- Finance committee fee schedule
- Parking enforcement resumption
- Building permits for major projects
- Sale of the Dunn warehouse
Confusion over amendment procedures
Members asked City Attorney Tipton and Treasurer DePietro to clarify whether the Council could cut a line item now to earmark funding for the youth department position, or whether the only option was to amend the budget in December. The attorney and treasurer confirmed that any increase to a line item would have to come through a December amendment.
Key points
- Several members asked whether reducing a line item now would automatically make the money available for the youth department.
- Tipton said reducing a line item would return money to the fund balance, but the Council cannot add to a different line item before approving the budget.
- The only procedural path to restore the youth department position is a budget amendment after the budget takes effect.
- Members discussed whether there was time to identify a line item to cut before the Sunday deadline; the consensus was that the holiday week made that impractical.
Morris restates opposition to the budget's trajectory
Morris said the larger issue is that the city is not living within its means. Revenue and spending are misaligned, taxes have been raised two years in a row to the maximum allowed rate, and the trajectory is unsustainable. She said the youth department position can be fixed procedurally, but the budget overall is not sound.
Key points
- Morris said the city raised taxes last year and is raising them 3.9 percent this year, the highest rate allowed.
- Tax increases affect renters, business owners on Warren Street, and homeowners.
- The city is not living within its means and needs to align revenue with spending.
- Morris said the budget is not good and the city is not on a sound path.
Public comment from Nick Zachos
Nick Zachos spoke remotely and said both youth department positions should be restored. He said the full-time recreation attendant position is a union position and cannot be legally cut. He said the assistant director position is vital to running the summer camp and supervising staff, and cutting both positions without consulting the department was disappointing.
Key points
- Zachos said the full-time recreation attendant position is a union position and cutting it would result in lawsuits.
- The assistant director position helps run the summer camp and provides supervisory capacity in a department with few supervisory roles.
- Zachos said cutting both positions without consulting the youth department was disappointing and happened behind closed doors.
- He urged the Council to restore both positions through a budget amendment in December.
- Not restoring the positions would hinder the department and endanger the safety of children at Oakdale.
Discussion of the budget's overall scope and shortfall
Rich Volo said the Board of Estimate and Apportionment reduced the budget from $19 million to $16 million by cutting line items including a garbage truck and a street sweeper. The fund balance shortfall is $385,000; restoring the youth department position would increase it to around $435,000. Volo said the board did diligent work and praised their effort.
Key points
- The Board of Estimate and Apportionment reduced the budget by roughly $3 million through line-item cuts.
- Specific cuts included a garbage truck and a street sweeper.
- The fund balance shortfall in the proposed budget is $385,000.
- Restoring the youth department position would increase the shortfall by $40,000 to $50,000, bringing it to around $435,000.
- Volo said the board went through many line items carefully and did a thorough job.
Volo opposes sale of Dunn warehouse
Volo said he personally opposes selling the Dunn warehouse. He said the city is incorporated to hold property, and selling assets to cover budget gaps is not a good long-term strategy. He suggested the city could address housing issues and bring vacant properties onto the tax rolls to generate revenue.
Key points
- Volo said he does not support selling the Dunn warehouse.
- The city is incorporated as a body corporate and politic to hold property.
- Selling city-owned buildings is not a sustainable way to generate revenue.
- Volo suggested converting vacant properties to housing and bringing them onto the tax rolls as an alternative revenue source.
DePietro defends fund balance use and tax rate
Treasurer Tom DePietro said the city has used the fund balance in every budget for the past 10 years. He said the city did not raise taxes for the first three years of the current administration, raised them minimally in the fourth year, and this year's increase is still below what other municipalities are doing.
Key points
- DePietro said the fund balance has been used every year for the past decade.
- The city did not raise taxes for three years, then raised them minimally.
- This year's 3.9 percent increase is above the tax cap but below increases in other cities.
- DePietro defended the budget's use of the fund balance as consistent with past practice.
Exchange on tax increases and gentrification
Morris said Council members voting yes are responsible for raising taxes on the community. Mohammed Rony said gentrification and property tax increases go hand in hand, and when gentrification happens, fewer longtime residents pay taxes. The exchange was brief and did not resolve.
Key points
- Morris said members voting yes should think about the fact that they are asking taxpayers to pay more.
- Rony said gentrification causes property values and taxes to rise together.
- Rony said longtime residents bear the cost of rising taxes during gentrification.
- Morris said tax rates do not necessarily rise with gentrification, only property values.
Roll call vote: budget fails 5-5
The Council voted on the budget resolution. The vote was 5-5, which means the resolution failed. Under the charter, the budget will automatically take effect on Sunday when the 20-day deadline expires.
Key points
- Voting no: Gary Purnhagen, Margaret Morris, Lola Roberts, Mohammed Rony, Dominic Merante.
- Voting yes: Henry Haddad, Dewan Sarowar, Jason Foster, Jennifer Belton, Rich Volo.
- The resolution failed 5-5.
- Because the Council did not approve the budget within 20 days, it will automatically become effective on Sunday, December 1.
The budget becomes effective by default on Sunday, December 1. The Council plans to restore the youth department position through a budget amendment in December.
About this page
FUTURE HUDSON is an experiment in civic engagement: every public meeting of the City of Hudson since January 2026, transcribed and made readable, so any resident can follow what the city is deciding without attending every meeting. This page covers one meeting; see the full archive.
How it was made
The meeting video was transcribed automatically; the transcript was then organized into sections and summarized. The raw transcript is above, every claim can be checked against it.
What to be skeptical of
The transcript is automated and contains speech-recognition errors; names and numbers may be wrong. This page has not been reviewed by a human. Nothing here is an official record, the city's official minutes are authoritative.