In Hudson government, the Common Council has the power of the purse. The Council must approve the city budget and pass resolutions to accept donations, pay the monthly bills, commit the city to expenditures, approve change orders, issue bonds and incur debt, and dip into the fund balance to cover unanticipated expenses and close budget gaps. Since the Council approves endless budgetary decisions, one hopes councilmembers are paying attention and have the courage to raise a red flag when it looks like things may be getting out of hand.
This is the situation that exists in Hudson now. Given the number of projects happening in the city that are reliant on grant funding, the requirement to pay for those projects upfront and be reimbursed, the need to borrow the money to make the upfront payments, and the uncertainty about when (or if, when it comes to federal funding under the current administration) reimbursement will happen, it seems the City is sailing rather close to the wind, particularly since information shared by the city treasurer at the informal Council meeting on April 8 suggested that, when all the numbers are in for 2024, there may be less than $2 million in unrestricted funds left in the City's fund balance.
As a resident and homeowner in Hudson, I am grateful for members of the Common Council who are being vigilant and concerned about the City's fiscal future as nondiscretionary costs (health insurance, raises dictated by union contracts) continue to rise and a possible recession looms. Our mayor, however, takes a different approach. This is what he posted today on Instagram.
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