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Henderson Council rejects proposed FY27 budget after debate over cuts, fund balance use
Summary
The Henderson City Council declined to adopt the proposed FY27 budget after members raised concerns about heavy cuts and reliance on $5 million from the general fund balance; the motion to deny passed 5–4, and a special meeting was scheduled to find alternatives before the July 1 deadline.
The Henderson City Council voted on June 8 to deny adoption of the city’s proposed fiscal year 2027 budget after sharp debate over cuts and reserve use.
Finance Director Joey Fuqua told the Council the FY27 budget as presented was “balanced but relies on using $5 million from the General Fund’s fund balance,” and that departments had endured significant cuts to training, travel, and capital outlay. Fuqua said staff expects FY26 to end with strong savings but cautioned FY27 would require aggressive cost containment.
Councilmember Geraldine Champion said she could not support a budget that she believed focused cuts on lower‑level positions rather than higher‑level expenditures and moved to deny Ordinance 26‑05 (Adoption of the FY27 Annual Budget). The motion to deny was seconded and recorded as passing with yes votes from Councilmembers Catherine Gill, Tami Walker, Geraldine Champion, Michael Venable and Mayor Melissa Elliott; Councilmembers Garry D. Daeke, Kenia Gomez‑Jimenez, Lamont Noel and Sam Seifert voted no.
City Attorney Dan Hartzog Jr. reminded the Council that a budget must be approved before July 1 and that the Council would need to convene a special called meeting to consider additional options. City Manager Paylor Spruill said staff would return with alternatives and additional information at the special meeting.
The denial leaves the council with a compressed timeline to produce a new budget or identify changes that secure the required majority before the legal deadline for adoption.
