LITTLE FALLS, NY — The Little Falls Common Council convened its regular session on July 1, 2025, at 6:00 PM in the Common Council Chambers, addressing a

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that included financial updates, infrastructure projects, and community development initiatives.

Mayor Deborah Kaufman led the meeting, which saw unanimous approval of minutes, bills, monthly reports, and four key resolutions. The mayor’s detailed comments, delivered during the meeting, underscored the city’s efforts to stabilize its finances and advance critical projects.

Financial Overview and Deficit Financing

Mayor Kaufman provided an in-depth financial update, highlighting the city’s cash position and ongoing efforts to manage its budget. “The cash position today is $1,409,534, which includes the general fund, water fund, sewer, and golf funds. The general fund accounts for approximately $929,000 of that total,” Kaufman stated.

She noted an additional $890,569 in a reserve fund earmarked for upcoming payments, explaining that the fund is currently low due to planned bond financing to address deficit spending.

The mayor emphasized progress in reducing outstanding payments, with $83,219 in 90-day pay and $115,205 in 60-day pay, totaling $397,228.

“That has been reduced compared to what we’ve been reporting in other months, and I’m glad to see that little by little, we are paying everybody, even if it takes longer than we’d like,” she said.

A significant achievement was the approval of a deficit financing bill, a process Kaufman described as challenging but ultimately successful. “It took the better part of a year to get this done and before the legislature. Both the Assembly and Senate voted unanimously, with incredible support from Senator Mark Walczyk and Assemblyman Robert Smullen, who worked night and day,” Kaufman recounted.

She acknowledged the council’s dedication, noting, “Our aldermen and alderwoman were incredibly supportive, dropping everything to attend emergency meetings and vote on minor changes. Their commitment ensured we didn’t give up.”

The deficit financing stabilizes the city’s finances by bringing the general, water, and golf funds to zero. “This isn’t a massive amount of money to spend; it just brings us to zero, which is good at this point. Now we can start building back revenue,” Kaufman explained.

She identified revenue as the city’s primary challenge, driven by population loss and reduced property taxes, and proposed exploring a 3% bed tax to generate approximately $150,000 annually from the city’s 42 Airbnbs and hotels.

Infrastructure and Bonding

Kaufman detailed the closure of an $8 million financing package for water infrastructure, including $6 million for emergency water filtration, approximately $1 million for NYPA lighting and consolidation of outstanding bonds. “The paperwork is completed, and it should go through tomorrow. This was our first time working with an underwriter since we got the deficit financing, which was cumbersome, but the next one should be easier,” she said.

An additional $207,000 from the general fund will support the water filtration plant bond starting August 1, with plans to secure grants to offset costs.

The mayor also addressed the city’s constitutional tax limit (CTL), noting, “We’ve been trying to keep below 80% to make a difference for financiers. Thanks to Sarah’s daily work, we’re now at 79.84%, which is awesome.”

This achievement enhances the city’s financial credibility.

Budget and Revenue Strategies

Reviewing the 2025 budget, Kaufman reported that expenditures are on track with no major surprises. “Everybody’s been staying really close to the budget, with only minor fluctuations,” she said.

Revenue, however, remains under evaluation, with delays in certain streams. The city awaits a bid from a tree forester to estimate harvest revenue and is working with Herkimer County on small property sales.

“Bianca is helping to see which parcels can be released, but county and school district taxes often reduce our revenue, sometimes to as little as $500 or a dollar,” Kaufman noted.

The County is also addressing distressed homes, with two properties, Casler and Webster, approved for demolition pending bids.

“Getting clear title is the slow part—you can’t just take someone’s place down,” Kaufman said.

To prepare for 2026, the City plans to draft the first four months of the budget this summer, anticipating the transition from a calendar to a fiscal year in 2026.

Property tax collection stands at $3.4 million of the projected $3.9 million, with $400,000 still outstanding, which Kaufman described as typical.

A recent tax anticipation note (TAN) of $2 million cost $66,000 in interest but “saved the day” for the first four months of 2025.

Kaufman expressed hope that the fiscal year change will eliminate the need for future TANs, citing discussions with the City’s accounting firm.

Community Development and Grants

Kaufman highlighted several community projects, including the Agent Orange monument in Eastern Park and historic markers placed by the Historical Society.

The swimming pool and parks program opened with record crowds, thanks in part to Alderman Craig Lockwood’s efforts to paint the pool house. “Craig saved the day by getting matching paint over the weekend,” she said.

Buttermilk Falls improvements are progressing, led by a dedicated team including many 70-year-old volunteers.

The Downtown Revitalization Initiative (DRI) is advancing, with a $17,000 roof project completed and submitted for reimbursement. The DRI lowered the threshold for small businesses to participate, reducing the minimum investment from $25,000 to $10,000 for machinery, equipment, furniture, and fixtures.

“This could really help new businesses,” Kaufman noted. A larger $3 million DRI canopy project remains on hold to preserve financial bandwidth for emergencies.

The city’s annual $400,000 HOME grant has been increased to $500,000 for the next year due to strong performance. A $30 million hotel and spa project is moving through zoning, with 44 units planned, though it awaits a zoning waiver due to mixed zoning on the parcel.

Other developments, including the Valley View project, are in progress, pending planning and funding.

Looking Ahead

Kaufman concluded with optimism, emphasizing the council’s resilience and community support. “This deficit financing stabilizes us to prevent a deeper downturn. Our problem has always been revenue, not expenditure, and we’re exploring creative solutions like shared services and a bed tax,” she said.

The mayor invited questions, addressing a query about the bed tax estimate, clarifying it did not include the new hotel, which could further boost revenue.

The meeting adjourned after there being no new or old business brought up.

You can watch the full session on YouTube, or view it below.