Residents decry proposed 17% tax increase at Schenectady budget hearing; council schedules follow-up

Schenectady City Council held a public hearing Oct. 14 on the proposed 2026 operating and capital budget, and several residents urged the council and mayor to reduce a proposed 17% property tax increase and to rethink recent changes to garbage fees and city programs.

The hearing drew eight scheduled public commenters and additional speakers who raised concerns about the scale of the proposed tax increase, the city’s use of American Rescue Plan Act funding, the garbage sticker program, capital purchases for the police department and cuts to teen employment programs.

"This year's whopping 17% tax increase ... is just inexcusable and unacceptable," said Joe Anderson, president of Boulevard Appreciation Neighborhood Association, who described rising housing and utility costs facing residents. "Cuts need to be made and efficiencies need to be found while expanding the tax base and bringing in more revenue."

Other speakers quantified and questioned budget line items. "This proposed budget, I estimate, would increase my monthly mortgage payments by at least $50 a month," said Sean Radigan, who also summarized figures he said he found in the budget document, including a general-fund total near $120,500,000 and a $25,000,000 police budget that he said reflects about 184.5 positions. Radigan attributed part of the shortfall to a loss of ARPA funds and disputed the amount of ARPA listed in documents.

"The proposed 2026 budget raises total city spending to about $120,000,000, a 3.17% increase over last year," said Ellie Pepper, who told the council the proposed property tax rate would rise from $13.30 to $15.77 per $1,000 of assessed value and said the increase would exceed the state tax cap. "We were told that the casino would decrease taxes — where is that money going?" she asked, urging the council to publish how casino revenue has been received and spent.

Public comment also focused on the city's recent roll-out of a garbage sticker program. Hayden Engert described the sticker program as "complicated, inconvenient, and unfair, especially to seniors and families on fixed income," and urged alternatives such as scheduled bulk pickup and a transparent citywide waste fee. Council president Porterfield later clarified that neither a mandatory bag count nor a council-sponsored bag-count policy currently exists: "The bag count was voted down. We do not require, currently, people to count their bags of garbage," she said.

Speakers pressed the council to preserve smaller line items with direct resident benefit. Diane Moore and others asked the council to reconsider cuts to teen employment in city parks; Moore called the program valuable and warned restoration would be difficult once eliminated.

A few speakers urged broader policy changes. Dean Mirabito recommended shifting funds from policing toward prevention programs, and Tom Kennedy, chair of the Schenectady Republican Party, urged caution about long-term use of federal ARPA funds and the budget deficit they say the city faces.

Mayor McCarthy responded to public comment, describing the budget process as "difficult and challenging," and citing multiple pressures, including declining ARPA funding and rising health-care costs for a self-insured city. He said Schenectady receives less state aid on the state's formula than some peer cities and expressed a desire to continue discussions with the council to reach "a balanced and fair budget" by Nov. 1.

Council president Porterfield thanked residents for attending, noted the next budget hearing scheduled for Oct. 15 at 5:30 p.m. in Room 110, and said council and mayoral deliberations would continue. "Please join us online, show up in Room 110, listen what's happening, and continue to voice your concern," she said.

The public hearing closed after city staff read communications and petitions submitted in writing and the council approved a legislative consent agenda later in the meeting. No final budget adoption occurred that night; council members said further review and deliberation would follow.

The hearing record includes repeated requests for clearer, plain-language disclosure of how casino revenue and ARPA funds were applied to prior budgets and specific line items for employee benefits and capital spending.

The council indicated it will hold additional budget sessions before a final vote; the mayor and council members both said they expect continued negotiation ahead of the Nov. 1 timetable mentioned by the mayor.