Fulton Nears Constitutional Debt Limit as Budget Pressures Continue

FULTON — City officials confirmed this week that Fulton is operating close to its constitutional borrowing limit, highlighting ongoing financial pressures tied largely to personnel costs and long-standing accounting issues.

According to city leadership, Fulton is currently using approximately 94 percent of its constitutional debt limit, leaving a narrow margin for additional borrowing. Officials noted that the percentage can fluctuate as debt is retired or new obligations are approved, but the city remains near the upper threshold.

Questions were also raised regarding financial oversight practices, including whether the city conducts quarterly budget reviews. No answer was provided on whether such reviews are currently taking place.

City officials acknowledged that the city’s financial books have not been balanced for several years, with the majority of the issues developing over the past three to four years. No specific cause for the delays was publicly detailed, though officials confirmed the imbalance remains unresolved.

Labor costs continue to represent the largest portion of the city’s expenditures. Officials stated that union contracts—including wages, benefits, and pension obligations—account for approximately 80 percent of the entire city budget. This total includes contracts with the Civil Service Employees Association (CSEA), the Fulton Fire Department, and the Fulton Police Department.

Despite all union contracts being fully negotiated and ratified, City Council members have asked union leadership to voluntarily reopen discussions in an effort to reduce financial strain on taxpayers. These talks would take place through a Memorandum of Understanding (MOU) and are described by officials as ongoing.

City leaders emphasized that any changes would require union cooperation and would not alter the existing contracts unless mutually agreed upon.

The city’s financial status and budget management practices remain a growing concern for residents as officials continue working to stabilize finances while maintaining essential services.

From Councilor Campolieta, “We continue to best align revenues with expectations so a slight increase in revenues have yielded a slight decrease in tax levy. We all continue to work to find routes for expense reductions beyond the already very accurate projections based on administrative and council review. “

She reminds citizens, at Tuesday’s meeting, that amendments may still come forward for council vote of rejection or acceptance before a final budget vote. Amendment’s proposed may further reduce the tax levy. All council members are working towards even a slight reduction in the tax levy.

It is the council’s obligation to pass a timely budget. Legal counsel has advised the city council of this obligation.

At this point, there is no public comment period at the next city council meeting. However, we have heard many very upset citizens comment on the city’s budget at the past two public hearings.

City of Flutn Council Agenda and Budget as of 12/22/2025 9 am

What the Constitutional Debt Limit Means

New York State law places a cap on the amount of debt municipalities can carry, commonly referred to as the constitutional borrowing limit. City officials confirmed that Fulton is currently at approximately 94 percent of that limit.

Further Information: In the U.S., representative democracy operates at the local level, where residents elect officials to make decisions on their behalf about city services, laws, and spending. Instead of every voter deciding each issue directly, citizens choose a mayor and city council members to represent their interests and vote on local matters.

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