City Council - Finance Committee

Finance Committee Minutes September 10, 2025 Members present: Chair Tom Peake, Councilor Koni Denham, Councilor Peg Conni Members absent: None Also in Attendance: Hetal Patel, City Auditor- Brook Johnson, Treasurer - Interim Mayor Salem Derby, Chris Norris - Fire Chief, Jane Mantolesky - Attorney (REMOTE); Mike Michon - One Industrial Lofts (REMOTE); Allyson Manuel, - Planning Director; Chad Alexander-Police Chief; Felicia Jadczak - City Councilor (REMOTE) Meeting called to order by Councilor Peake at 5:30 pm 1. Approval of minutes from past meetings • August 13, 2025 Motion made by Councilor Denham; Second by Councilor Conni . APPROVED 3-0 2. Mayor’s Communication: None 3. Public Speak: None 4. New Business: • Supplemental Appropriation Request: • $20,000.00 from Reserve Fund to Legal for legal costs billed in Fiscal Year 2026 - Legal budget was not funded for this scal year - Will continue the work on Main Street, water and sewer and other improvements Motion by Councilor Denham, Second by Councilor Conni to approve. APPROVED. 3-0 • $5,830.00 from Reserve Fund to Auditor Salary - temporary increase in hours for auditor by 5 hours/week until 12/31/2025. Addressing current backlog. - On Motion by Councilor Denham and Second by Councilor Conni , and a vote of 3-0, the Finance Committee took no action and continued this discussion to next meeting • City Council Action Request: To adopt Ch. 320 of the Acts of 1987 which would allow the City Council by a 2/3 vote, and following a 2/3 vote of the school committee, to increase the total amount appropriated in support of the school district. - Lengthy discussion on the merits of enacting this were held. Councilor Denham felt that this placed all other employees of the city at a disadvantage as they would have no ability to lobby for money being added to the budget on their behalf. Councilor Denham also felt this lays too much power in the hands of the city council. - Councilor Conni felt that it creates another tool for the council’s toolbox in the unlikely event unfair budgets would be enacted if the Mayor and the School Committee or City Council could not come to reasonable agreement on the budget for the schools. ff ff ff ff fi ff  - Councilor Peake felt it would reduce some of the power from the Mayor and could prove helpful if this could be applied to all departments but unfortunately, there is now path to other departments without a change to the city charter. - School Committee Chair Laura Scott felt this could be another tool to allow collaboration with the Mayor. It does not imply that the Schools support money being taken from other departments. - On Motion by Councilor Conni and second by Councilor Denham, this matter was recommended to the full City Council with a vote of 2-1 - Councilor Denham was opposed. • Interdepartmental Transfer Request: $8,641.20 to fund the unfunded hours associated with the Veterans’ Services Principal Clerk position - This amount will be used to fund the unfunded hours associated with the Veteran’s Services Principal Clerk position. MOTION by Councilor Conni , Second by Councilor Denham to approve. APPROVED 3-0 5. Continuing Business: - Quarterly scal reports from the City Auditor - awaiting these when the books for FY 2025 close. No new information. - Borrowing/Bonding of $3,000,000.00 for 11 Ferry St. - District Improvement Finance (DIF) District. - Economic incentives. Ferry Street District established in 2018. Current payment of taxes and PILOT money currently goes into the General Fund. We have been receiving the 6A payments closing to free cash. There are 2 di erent ways the city can nance this. Either a full loan of $3,000,000 or an incremental loan as it is needed up to $3M. City recommends a General Obligation Bond. V. Special Obligation Bond. Mayor Derby explained that this $3M loan will unlock a signi cant amount of other opportunities for the city. - Review from Hetal Patel (City Auditor) on what was paid v. What was owed. 121A Payment - Have received $198,000 and need DIF account to have $178,000. Need $178,000 to go into DIF borrowing account and we can move that from Free Cash. and 121A - Next step is to review side by side payment for the invoices and what the timing will be of the borrowing needs going forward. City will pay o the borrowing with the DIF Borrowing account. - As for nancing options, Brook Johnson, Treasurer o ered that city could borrow up to $3M at traditional borrowing and 1.7% interest until 2051. This would result in the city paying more in interest over the life of the bond. Option 2 is to borrow the $3M but not pay on principle for a few years at 2.5% interest to 2056. There would be a period of about 7 years where the city would be paying out more on the bond than receiving. There is a plan in place to mitigate that. The advantage is that eventually as the demolition of the building is completed, the new structure would be bringing in more taxes once Certi cate of Occupancy is received. This would o set the de cit. - Motion to recommend to full council by Councilor Conni , Second Councilor Denham. APPROVED 3-0 ff fi fi fi ff ff fi ff ff ff fi ff fi  - Draft of Order of Adoption read into the record by Councilor Peake. Motion by Councilor Denham and second by Councilor Conni to recommend establishing IRD and IRDP. APPROVED 3-0 - Rescinding of borrowing authorizations for CitySpace restoration & Honeywell Energy Cons. Project for HVAC at City Hall did not happen so this money is being refunded. Motion to adjourn at 6:40pm, by Councilor Conni and seconded by Councilor Denham. APPROVED 3-0 6. Next meeting: TBD No additional business to discuss. Respectfully submitted, Councilor Peg Conni ff ff ff