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The Schenectady City Council Finance Committee is planning additional hearings on the proposed 2026 budget. These hearings will occur on Tuesday (October 21), Wednesday (October 22), and Friday (October 24) at City Hall, starting at 5:30 p.m. Mayor Gary McCarthy's proposed budget calls for over $120 million in spending, marking a more than three percent increase from the current budget. The plan also includes the largest property tax hike since McCarthy took office.
The proposed budget has sparked concern among city residents, particularly regarding the 17% tax increase and higher residential trash collection fees. During a recent public hearing, residents voiced their concerns about the budget's impact on their finances. Ellie Pepper, a resident, questioned the need for increased spending on the police department when crime data suggests a decline. She also highlighted significant pay raises for the mayor's and police chief's executive secretaries.
Mayor McCarthy's budget relies on approximately $2 million from fund balance monies and includes pay raises for city staff. The property tax rate would rise from $13.38 to $15.77 per $1,000 of assessed property value. This means that properties assessed at $100,000 would see an annual property tax increase of $240, while garbage fees would rise by $104 per year.
Council members, facing reelection in November, have pledged to work towards a more balanced budget. City Council President Marion Porterfield assured residents that the council would strive for a livable budget. Councilman John Mootooveren, chairman of the finance committee, expressed optimism about reaching a compromise with the mayor.
The budget process has been challenging, with McCarthy citing the loss of American Rescue Plan Act funding, rising healthcare costs, and limited state aid. Councilman Damonni Farley emphasized the importance of considering the budget's impact on vulnerable residents. McCarthy aims to finalize a balanced budget by November 1.