Common Council, Special Meeting on 2026 Budget

1. 0:58The special 26 indivisible. here here. Morris here. Here. Roberts here. Romy here. Starwir here. Bola here. President here. Excuse me. Can I give introduction a second to receive the call of the meeting and place it on file and run? All those in favor signify by saying I. Okay. The resolution on the table. The only business
2. 2:08is to approve. Sorry, I forgot to put my hearing aids in. is um all right, I'll start over. The only uh business on tonight's agenda is approving the proposed budget for the period January 21st, 2026 through December 31st, 2026. Can I have an introduction and a second? Okay. Discussion first by council members. Um, any qu like questions or comments there? I mean, we discussed it. I think I don't think we can. I have a comment. Um, I'm sorry everybody. I forgot to put in my hearing aids. Okay. So, you're going to have to shout at me. Um over the years we have been during our but during the
3. 3:16co pandemic we had our funding so that enabled us not to dip into our uh our fund balance. Um but now we're dipping into our fund balance. Last year we raised taxes. This year we're raising them again by 3.9%. Uh I really think that there are areas in this budget where we need to come to terms with revenues and expenditures coming into coming into alignment. Uh because we are not on a good trajectory here. Uh I do want to speak to an issue relating to the youth department which has been subject of much discussion online and elsewhere. um the BEA of which I am not a member uh decided to put in place a hiring fee uh which related old lease to vacate positions. Uh Mr. Lewis and I have discussed this. There was an error in the the doc submitted to the BEA which indicated that there were two vacancies
4. 4:23in the youth department. In fact, there was only one. So the budget that we have before us um went through all of the departments and eliminated all vacancies as part of the hiring increase. Uh the BEA although I suggested it as a member of the public uh did not have a second round of hearings with the departments to say this is what we've done uh etc. uh with any uh feedback before it came to the council. So at the time that this budget was submitted to the council um that's when the departments saw what the decisions were and so at that point Mr. Lewis identified the error in the youth department budget where two positions had been uh eliminated as part of the hiring freeze whereas one of them is actually not a vacancy. It is a it's a position currently occupied by a member of the youth department, an employee of the youth department. We cannot under our charter increase anything in the budget that's not within our priority. The only thing we can do is decrease at a line item
5. 5:38level elements in the budget. So I think that frankly the BEA should have sent this back to the department so that they could see what was in the budget and they would have had an opportunity and at that time I think Mr. Lewis would have identified the error and have corrected it before we got to where we are today. Um, I do think that there are areas I I think we do need to start looking more closely at our expenditures and bringing them in line with our revenue. Our revenue projections have been uh more optimistic than that has occurred in reality. Last year we took out 800,000 uh from the fund balance. Uh we our revenues in 2025 have not matched projections. So that's likely to be more than that this year. uh there I think what should happen is that this needs to go back to the departments and they need to look at where they can cut some costs in operations so that we can come to a budget that is sustainable and uh where
6. 6:48we are not dipping into our fund balance year-over-year which has now happened two years in a row since the end of the co pandemic and the end of the AR funding that enabled us to do these things. Uh so for all of these reasons I have serious concerns with this budget and with the process and uh for that reason I will be voting against uh uh this budget. That's all I have to say is first of all uh it is it is correct we cannot add to the budget at this point. However, I know there's a lot of people here representing the youth department in December. we can add to the budget for next year and those two positions if the council wants to do it. So, it's not hopeless yet. Um, that speaks to that. Um, Crystal, would you explain how why we can't actually send it back to the various departments at this point? Sure. So the council only has the power that's given to it that um in the charter and the charter is very specific
7. 7:54and has a um some significant restrictions on the council's power when it comes to the budget and that's where once that budget gets presented to the council um once the mayor's budget gets presented to the council uh the council has 20 days to either act on it or as um council member Marissa said they can reduce um any of the the line line line items. However, there's no ability to increase the budget. There's no ability to reject it and send it back to the BEA to be to look at it again. Um they are limited in their ability to either approve it or uh you know vote on um amendments that reduce those line items and that's about the only op the only ability the council really has with respect to this budget. which is why the only real option with that position is to do a budget amendment uh provided there are appropriations um elsewhere that can be used to cover the salary for that position. Thank you. Crystal Heather, would you like to add anything at this point?
8. 9:03Uh, no. You know, I just like to reiterate Margaret's point in that, uh, it was not an intention, at least from my perspective, and I believe I speak for the BEA as a whole, to remove any positions. It was only looking at, uh, positions that were vacant. And unfortunately, the document that we were provided indicated that there was a position that apparently was not vacant. So, um I think uh as Tom says, we will look to address that uh via a budget amendment going forward. Thank you. Mr. L, did you want to speak? Yeah, I seem to be the only one paying attention. That position that was cut was never a position that was in the youth department. The athletic director position was created for this budget. So, it's not been approved by civil service. There's no one filling that that's in that role currently. Um, so when it was taken out and it was just under the hiring freeze, we didn't eliminate any positions. We just made it so until departments get approval to hire, they can fill the positions that that are vacant, but that particular position is not in the youth department.
9. 10:13It's not been approved by civil service. So we didn't make any mistake. So So excuse me. Does that mean that it is in fact a vacancy? It's it's in a vac it's a vacancy but it hasn't been created. The position has to go through all the civil service standards for so so the budget that when when the BEA went through with the hiring fees and identified two positions that had asterisks as vacant that was correct those positions are in fact vacant. Yes. Okay. All right. Thank you. I did not understand that. So I'm sorry. So there is not currently a a person on the payroll that is not included in the budget. Sorry. Yeah, that position athletic director doesn't exist yet in that um Tom. Um, yes, Kamal is correct in that the line and
10. 11:21the title that was included in the youth director's budget that said it was vacant is in fact a new title. The piece that is missing from that description is that there is a current employee who has been employed and continues to be to this day employed by the youth department whose name and title were removed from the youth director's budget submission. So there is in fact a person currently employed by the youth department that whose salary was not included in the youth department budget because the name and the title were omitted from the submission. Okay. Um council members. Yeah. I I just want to say that um I'm not talking about the youth department. Um, in general, we all got into playing this uh blame game and that's not going to go anywhere unless we all take full responsibility for certain things including the council when we vote things to just be cognizant that
11. 12:33the fund balance will be affected, the taxes will be affected. And um also there are other things that they're not in our control like the increase of um uh pay insuranceances uh cost of all DPW all the salt everything that it's done in our roads it's it's it's became skyrocket what uh Rob was telling us from uh after co so it's a combination of factors um and also we've done a lot of projects so it is a combination of factors And we have to acknowledge this and um moving forward I do believe we have to strategize making changes on certain things how we view things and um but right now I feel that it would be I had a lot of constituents send me emails against the budget and it's not this I'm this side or that side. I feel having an extra week or two to review everything in case we find something that they can be at
12. 13:39the benefit of the city would not be a bad idea. So I would so the timeline ends on Sunday. Yeah. So I know but I mean when if we have a say we have also a say to not agree and I feel you cannot agree but let's just go forward anyway. Yeah. I mean in 20 days. 20 days from the 10th. Yes. Someday. So, um let me I just want to speak to one thing. This issue of the fund balance. Yes. Last year and this year we're relying on the fund balance. Um two things. We overestimated last year without a doubt. That's not incorrect. However, um the things that we were estimating will be coming forward this year most likely. It took the finance committee still hasn't come up with their fee schedule, their renewed fee schedule, though they've had 10 years and that's happened before. So, that would be one thing that definitely increases revenue. Secondly, the parking situation will presumably get settled within the next couple months um by uh the police department
13. 14:50and that'll bring in revenue. Thirdly, we have a number of projects that the building um permits are in the works that are also going to bring in a significant amount of revenue. And lastly, one way or another, whoever buys the Dun building, that would be a significant boost to the fund balance as well. So, it's not a hopeless situation. Um, and that's that. I guess we're Oh, Dominic Calvin, I got a question for you. Is what Heather says correct? Sorry, Dominic. Can I'm just I'm asking Calvin's check. Correct. There's there's an employee that's currently working that according to the budget if we pass it would be not funded in January 1. If if it's correct. Okay. So it's passed now. So if if it passes then that position is not there. You have to do amendment.
14. 15:55Correct. Yeah. I'm talking to Calvin. Well, actually you made a mistake already. It won't be January 1. We can we should correct it in December. No, I'm just I I was just speaking please. So So not how it works. Okay. How many meetings do we have left? And then um so so Kevin Calvin so to do the amendment then um to cover the salary will have that go into the fund balance again uh after passing the budget we're going to go back into fund to fund this position I'm not sure Heather is that what we'll have to do we'll have to so the fund balance if it's $400,000 it would be additional whatever the salary is for that staff right Heather Uh that is my understanding. I do not know of any other source of revenue that could cover that additional expense. Just as Chris had said earlier. Okay. So So either way, if if we don't pass the budget, um the position is
15. 17:05still there, right? And um and then hopefully if the the my goal would be If the department has could at least buy a modest 3% yes and then that would compensate yes for that salary for the youth department rather than increasing the fund balance uh draw. Um so um and I think that it gives time because my understanding is that if if we do not pass the budget today and whatever the reason in 20 days it's automatically approved by default. Is that correct Crystal? Yes. It's actually 20 days from when the budget was presented to the council. So that meeting where the but the mayor presented the budget to the council that's the start of the 20 days and then if it's not acted on by the council it is a default approval. Okay. So, so, so even if say no, it's going to be approved. Correct. I would like to
16. 18:19Sorry. Go ahead. Okay. Um, one area where I think we could probably uh cut cut some spending is cemetery fun. Um, and I think that to Dominic's point about where is the funding going to come other than the fund balance that position that right? Excuse me. It can come from already a portioned. Sorry, I'm I'm really sorry. Yes, it can come from already budget. Exactly. So it doesn't necessarily happen. So if we were to reduce the line item in the cemetery fund, uh we could potentially uh No, I think as I understand it, we would have to approve it as it is. I see what you're saying. As a budgetary amendment, take it from that. out. But I think in January, if we're trying to do an adjustment or an amendment, that's an area, Dominic, where we could potentially find money that's in the current budget to uh to fund that position without going into
17. 19:28the bund. Do you see what I'm saying? Yeah. Yeah. I mean, could have. You say you could have, right? So, I think it's important that we figure out how to keep those decisions there. So a staff is not um stressed or whatever, right? So especially if it's longtime staff. So um I think it's important to figure out how we can keep that uh staff uh at least that staff. I think you know in terms of you know I I mean maybe how we can get creative in terms of um you know personnel and other budgets to assist in in fulfilling that portion of that salary. I just had another thought actually. Um, if we can take money from the fund balance to pay for this uh other headcount, wouldn't it make sense actually now that I think about it, wouldn't it make sense to reduce it from the line item right now? That would automatically put it back in the fund balance. I'm sorry. Can you because we were basically Can just say what you said again but louder. Um, the only way to like kind of earmark that spending right now would be take it out of a line item right now
18. 20:41before we approve it. Can't do it because you're adding it to another line. It's half. Yeah, we're not adding it to another line. I'm saying that if we take it from a line item, it automatically goes to the funds, right? Essentially, it's just going to that's pretty much what I was saying that we take money out of because otherwise if we approve it, what's to say that uh that department is not going to be like we can't afford this? Yeah. Well, it's hard to review though when you take out a time press. It's until Sunday. So, can't be done, right? We have a time pressure now. If if everything has to be done by Sunday, we can't really find the item that we have to renew. Right. Right. Because this is the
19. 21:50holiday public unless somebody wants to work on Friday. No, we still have that in announcing the public. I think I don't understand how it can happen. It's a good idea. Well, um it's a good idea and we could do it in December. We could do it make that transfer. They're going to get a trans if she can find something. That's that's the if that's the big if we find it for and and we're talking just the position that is currently filled. We're not we have to Yeah, we have No, I know that. But we're not going to try to there's two vacancies right now. So, we're only going to try to fix uh the the mistake of the current employee. we're not going to go and uh approve another position because we have no money for it. We don't make sure we you know fulfill the obligation for that staff um you know to guarantee uh they're they're going to be on board if there's no staff in in that one position position we're still uh and the youth
20. 23:00department still in the same boat with staffing. Yes, Margaret. So aside from this very particular issue of this particular position, uh the big issue for me in this budget and in the budgets of previous years is that we have been on a downward path here in terms of revenue and expenditures. Uh we raised taxes last year. We're raising them now again to 3.9% which is the highest tax the highest level that we can raise them to. that has a direct impact on uh cost of rentals for those for those of us who rent homes in Hudson. It has a direct impact on Warren Street on the business owners. Uh it has direct impact also on individuals who own own homes in Hudson and we are not living within our means. And I think it is time for us to come to grips with that and to go back and say nope, we have to look at what our revenue is and how much we can spend on our uh services to the public. And so to
21. 24:10me, like yes, there's this there's this issue around this individual and we want to make sure that you know that was never the intent of the hiring freeze so that we can fix procedurally. Uh but the bigger picture here is that we are not on a good path and that's what we have to really come to terms with and for that reason this budget is not a good budget. That's the bottom line for me. Yeah. Well, I mean I guess that's the conundrum is how what's the path forward? So I'm sorry. What's the path forward for us right now today? Even if we all say no, the budget passes unless we can, you know, change it somehow. But we can amend it next month. This is correct. Right. We can we can amend it after it's been passed. We can amend it to add that other item, but we cannot lose it. We can't reduce. We cannot reduce. No, it was automatically said. Yeah.
22. 25:16Uh, there's somebody online. It's Nick. Hi. Is that okay for public comment? Yes. Um, I would just like to say that, um, in terms of This is Nick Zakos. Oh, thank you. Um, in terms of these two positions, it from my understanding, and somebody can correct me if I'm wrong, the um full-time wreck attendant position, which was, you know, potentially looking at a a title change of um athletic director or something like that, that one can't be cut legally. That's a union position that is that would, you know, result in lawsuits if that was cut. Um, and so that one it seems like can't be cut. the assistant director position. I would just like to remind all the all the council members that even if that is vacant right now because the assistant director has stepped into the director role, that's a vital position to the youth department. And that's a position that essentially helps to run the summer
23. 26:28camp, who does a huge amount of supervisory work in a department that doesn't have a lot of other supervisory roles. Um, and so while we're talking about bringing back the one, I think the other position has to be brought back and I really think that the council should think about bringing back the assistant director role. I think to cut two positions, two vital positions really without consultation of the of the existing department to happen kind of behind closed doors was really disappointing. And I would really like to urge and I think it seems like you guys are on the right track. it has to happen in a December meeting um in a budget amendment. But I really think that both of those positions need to be brought back. I think to not bring both back would hamper the department um hinder the department in a way that is really dangerous um in terms of ensuring the safety of the kids and ensuring that the youth department run properly and that Oakdale run properly. That's my comment. Thank you. So in in terms of this particular
24. 27:36situation which is unfortunate that it's coming up at this late hour it's nothing that revenue wouldn't help. Um so my understanding is the shortfall is 385,000. Now I like working with numbers because it helps me to like contextualize situations. Now for this salary, how much is this salary and what would that do to the the shortfall? Is it 40,000? Is it 16? Is it 30? In that range. 40. I think 40 to 50. Yeah. So we're looking at instead of 385 short, we're looking at 435. Is that my understanding? if you're notic. Yeah. All right. Um, having just modified that, it helps me to to like work with numbers. I just want to speak to the work that the BEA did because they took a budget of what it was $19 million and then through various meetings and and scrutinous work and diligence and care and I sat in on most of those meetings.
25. 28:48So I saw how the proceedings went down and how these individuals council president, the mayor and Heather all together like mostly Heather would work the numbers, calculate find out and they legitimately went through a lot of line items. It didn't all come out of one place. There was a garbage truck that was asked for that was, you know, not granted. There was a street sweeper that was asked for that was not granted. So, it went from $19 million roughly to $16 million. And, you know, sometimes it gets psyched. I was a treasury secretary and I had this thing on my desk, income greater than dispersements. And that's, you know, a rule of thumb, you know, for most households. If you're not doing that, you're running into borrowing money and incurring more debt. You know, probably we can find someone that would just give take hold our debt at 0%. I think the whole situation will be solved. But we haven't found that that age. In fact, you mentioned that after next
26. 29:55year close to over 3/4 of a million dollars in financing will disappear. So that'll be Yes. But there will be another one that's coming on board next year. Anything like that building? I just one more I just want to make one point from a personal perspective. I'm not a fan of selling the gun warehouse just in general. Just my personal perspective. I think the city has been incorporated as a body corporate and politic in order to hold property and we have property issues. We have housing issues that we really haven't done a great job with. So if we, you know, well, this goes to another subject, but that if if we were able to to take some of these vacant properties and provide housing and in some way, you know, bring that get some things off the tax exempt status and make them taxable. That would be a way of generating revenue. So just a couple of ideas, but again, the BEA Tom you guys did a great job. I kind want to commend you. Thank you.
27. 31:01Comment. Sure. I just want to discuss the fund balance. Um the fund balance's use has been used every budget for the past 10 years. Our excuse me, our first tenure, uh the first three years we didn't raise taxes a single cent. Um the fourth year we raised it a bare minimum. This year we're we're raising it over the cap, but it's still under what other municipalities, other cities are raising in taxes. Okay. Okay. I guess we'll go. So, I mean, so with I just want to speak for the taxpayers. Now, the reality we're all tax she I'm glad you are. I would what I'm what I'm suggesting is that you're going to be responsible for raising the taxes on the on this community and that's the bottom line. I mean, we can argue about all the details of this budget, but you are asking the taxpayers to pay more and that's what you should be thinking about when they vote. Yeah. Can I make a comment? I'm sorry. I just want to make a quick comment statement
28. 32:09maybe. I just feel like with gentrification comes property tax increases, right? Goes hand in hand. I'm sorry. Can you say that again? Gentrification. When that happens, property taxes, it goes hand in hand. Property taxes, the value of people house, gentrification, people coming in making property higher. Yeah. But tax rates do not necessarily go up with gentrification. uh property everything. Yes. If you're community living in your community during gentrification, then you have less people paying any types of taxes. Let's just council member Fountain. No. Daludi. No. Morante. I just wanted to say one thing before I wasn't allowed to speak. um with the police department and DPW a bad storm, a bad incident can also have effects on
29. 33:18our their overtime. So you know that we have to be conscious of that in terms of you know what we what we're looking for when we do these amendments for these positions. All right. Right. So, um I I I think that with the position being eliminated with this budget, um I'm going to say no. On I don't see any organ came in this uh meeting today. I think people say no. So, I'm going to say yes. Morris, no. No. Roberts. I'll say yes. Rooney, this point it doesn't really even matter cuz Yeah. Okay. No. Sorry. No. No. President. Yes.
30. 34:33Okay, we have a motion The only thing we can

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