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Donovan warns of $6 million 2026 budget gap; hiring freeze and revenue options discussed
Summary
Mayor Donovan told attendees Mount Vernon faces an estimated $6 million budget gap for 2026 — roughly 17% of operating budget — and described steps including a hiring freeze, consideration of local funding measures, and seeking smaller revenue options to close the gap.
Mayor Donovan said Mount Vernon faces a budget gap of about $6 million for the 2026 budget year, about 17% of the city’s operating budget, and described steps the city has taken and options under consideration to address the shortfall.
The mayor said rising labor and materials costs and inflation are outpacing the city’s revenues, and he described a hiring freeze already implemented as one immediate measure to reduce spending. He said the city is evaluating additional revenue options for parks, police and fire staffing and may ask residents — via the City Council — whether to approve new funding measures.
Mayor Donovan described the city’s levy rate decline as part of the revenue challenge: he said the levy rate was about $2.85 per $1,000 of assessed value in 2015 and is now “a dollar fifty something,” which he said reduces inflation-adjusted revenue to the city. He said staff had requested about $3 million in additional resources last year to reach service levels comparable to cities of Mount Vernon’s size but the city could not accommodate those increases.
The mayor said maintaining the current level of service into 2026 would leave a roughly $6 million gap and that the hiring freeze could “bridge about half of that gap” if sustained. He said City Council was meeting that night and that residents could be asked whether they want investments in parks or increased police and fire staffing.
Mayor Donovan framed the approach as early action to avoid deeper cuts later, saying “if we take some actions early that we can work through this.” He did not announce specific new tax measures or exact timing for ballot questions.
The mayor urged public engagement as the city explores options and said some smaller, targeted revenue steps are being considered alongside potential resident-approved measures.
