City Council

Office of the City Clerk City Hall • 375 Merrimack Street • Lowell, MA 01852 P: 978.674.4161 • F: 978.970.4007 www.LowellMA.gov Lowell City Council Michael Q. Geary City Clerk Regular Meeting Minutes Date: Jun 02, 2015 Time: 5:30 PM Location: City Council Chamber 375 Merrimack Street, 2nd Floor, Lowell, MA GENERAL PUBLIC HEARINGS 1. - GENERAL PUBLIC HEARINGS 1.1. 2015 / 332 - SPECIAL MEETING NOTICE OF HEARING (FY 16 BUDGET VOTE) The Lowell City Council will hold a Special Meeting for Budget Hearing on the proposed Fiscal 2016, City of Lowell Budget on Tuesday June 2, 2015 at 5:30PM and Thursday June 4, 2015 at 5:30PM (if needed) and on such other dates and times to be publicly announced by the City Council. The Hearing will be held in the City Council Chamber, City Hall. The public is invited to attend. By Order, Rodney M. Elliott Mayor Roll Call showed 9 present. (C. Martin arrived at 5:38 PM) Mayor Elliott Presiding. M. Elliott noted posting and advertising for the hearing and recommended to body the approach needed to go through budget in an organized fashion. In City Council, Read twice. Public hearing held and closed. No remonstrant. Adopted by Roll Call vote. Manager Murphy provided a general discussion of the FY16 Budget noting the highlights of the budget including focus on public safety, education and economic City of Lowell • 375 Merrimack Street • Lowell, MA 01852 • www.lowellma.gov  (Page 2 of 4) development. Manager Murphy outlined the challenges faced by this budget and how they will be addressed now and in the future. M. Elliott opened the hearing to the public for all those to speak in favor and in opposition to the vote. No member of the public addressed the body. C. Mercier noted it was a precise budget and could not see making cuts to the budget and commented that all of the relevant data in the budget is helpful. Motion by C. Mercier, seconded by C. Milinazzo to move forward and vote to accept the budget. Adopted on Roll Call Vote, 7 yeas, 2 nays (C. Kennedy, M. Elliott). On motion C. Milinazzo agreed that the budget was well crafted and questioned the line item for the schools. Conor Baldwin (CFO) commented on the line item and spoke to the existing suspense account in the department. C. Milinazzo commented on in-kind services to the schools by the City. Mr. Baldwin noted a MOU of 2006 addressing that issue and commented that some changes should be made and that they are working with the school administration on that matter. C. Milinazzo commented on the enterprise funds in the City and how they reimburse the City. Mr. Baldwin outlined the formula that is used by the enterprise funds to reimburse the City. M. Milinazzo noted the explanation of how different revenues are used to fund operations was an important element in the budget. M. Elliott commented on the school budget noting the suspense account and that there was no money in budget for raises next year. C. Kennedy could not support the motion of C. Mercier and noted it was important to go through budget to provide public with information. C. Kennedy discussed enterprise funds revenues and debt service. Mr. Baldwin noted how the funds operate and the use of forecasts as to payments made by funds on debt service. Mr. Baldwin noted rate increases are also based on forecasts. C. Kennedy commented on the costs of snow removal and how it can be reduced and there is a need to look at lowering costs. Mr. Baldwin outlined the charts for tracking costs and that there may be room for reductions. Rodney Conley (STAT) discussed the charts used for tracing snow removal and noted it was not a perfect measure. C. Kennedy noted it was an excellent budget. C. Samaras noted it was a precise budget and he could not identify cuts and he would speak on specific items he has questions on. C. Samaras commented on finance plan for each department. Mr. Baldwin noted that element of the budget is vital as it spells out where the money is coming from. Robert Healy (Financial Consultant) noted it was vital information to Council and to the public as it shows how expenditures are covered. C. Samaras commented on debt service. Mr. Baldwin noted the line item and commented on how certain subsidies affect the debt service costs. C. Samaras commented on health insurance costs and the moderate projections. Mr. Baldwin noted there were less costs in FY16 which is unusual noting that policies that are chosen by employees will have an effect on costs to City. Mr. Baldwin noted there was a surplus for FY15. C. Samaras commented on public safety element of the budget noting increase in police presence. Supt. Taylor (LPD) commented on the positive changes in the department with added officers as they are more involved with community policing. Supt. Taylor noted the training costs involved in the department and how City of Lowell • 375 Merrimack Street • Lowell, MA 01852 • www.lowellma.gov  (Page 3 of 4) they are paid. C. Samaras questioned the reduction of salaries in the fire department. Mr. Baldwin noted it was the result of an audit and that there are no layoffs or salary reductions in the department. C. Rourke noted it was a complete budget and that it touched on public safety, education and economic development. C. Rourke commented on the ability to see money coming in and going out. C. Rourke commented on health insurance projections. Mr. Baldwin noted how the projections were done and that predicting is more difficult in this area because there is personal choice involved with selecting health plans. C. Rourke commented on charter school reimbursements and how they are declining. Mr. Baldwin noted that this is a major challenge in the budget as each year assessments increase and reimbursements decrease and that difference must be funded by the City. Manager Murphy noted that school enrollments continue to increase in regular schools and that adds to the budget problems. C. Rourke noted it was a State legislation issue. Manager Murphy noted the legislature will never reimburse one hundred percent. C. Rourke noted vacancies present in the LPD. Supt. Taylor commented on the vacancies and how they would be filled. C. Rourke commented on the shot spotter implementation. Supt. Taylor noted time line to begin that program. C. Rourke commented on overtime in the LFD. Fire Chief commented on closing of two companies during summer to alleviate that situation. C. Leahy commented on savings in electric accounts. Mr. Baldwin noted the wide array of energy accounts and the credits attached to them adding that there is an energy manager in the City who monitors them. C. Leahy noted the reduced salaries in the LFD. Mr. Baldwin spoke to recent analysis to tighten that budget. C. Leahy commented on school funding for modular classrooms. Manger Murphy noted there was no request for the classrooms and that there is no money in this budget for them. C. Belanger noted it was a responsible budget with not much to trim. C. Belanger noted there were several items the City has no control over which includes state funding. C. Belanger commented on the snow budget and how it can be amortized over a number of years. Mr. Healy outlined the handling of the snow deficit and how all savings will come from surplus and spreading it over three years so it least affects the tax payer. Mr. Healy noted from which accounts you can deficit spend. C. Belanger noted charter school assessment and the trend that it is taking. C. Belanger noted the department expenses in total and how small the number is. Mr. Baldwin noted that it shows fiscal control and good management by the department heads. C. Belanger noted payroll increases. Manager Murphy commented on contractual obligations under ordinance and union contracts. C. Belanger noted cost decreases in health and waste management budgets. M. Elliott relinquished Chair to Vice-Chair Leahy at 6:50 PM. M. Elliott recognized the effort on the budget preparation on the part of management and department heads. M. Elliott noted concern with tax increase but realized the City is in a good financial position M. Elliott made note of year to date reports and how that and growth will effect free cash certification and tax levy. M. Elliott noted pension liability spike this year. Mr. Baldwin noted that next year the increase will be much less based on formula. Manager Murphy noted the continued financial monitoring of costs and new growth to the end of the fiscal year could lessen the levy on the City of Lowell • 375 Merrimack Street • Lowell, MA 01852 • www.lowellma.gov  (Page 4 of 4) taxpayer that was estimated. M. Elliott noted the decrease in abatements in the City and commented that is beneficial. M. Elliott questioned the PILOT programs in existence currently. Mr. Baldwin noted the Housing Authority has the largest program and that there are some smaller ones. Sue LeMay (Assessor) noted that State owned property (UMass-Lowell) is accounted for in the Cherry Sheets. M. Elliott noted that it was a strong budget. C. Martin commented that the budget was a well-crafted document and that the administration kept the body informed along the way. C. Martin recognized the team effort by department heads and employees and that the tax payers get good value for their dollar. M. Elliott noted the added officers in the LPD and the control of net school spending sends a positive message to the City. C. Samaras commented on street lighting program. Michael McGovern (Asst. City Manager) outlined the approach to dealing with issues city wide. Vice-Chair Leahy returned Chair to M. Elliott at 7:08 PM. C. Kennedy called for a roll call vote on the motion. VOTING Committee Member YES NO ABSTAIN RECUSE MOTION SECONDED Elliott, Rodney M. x Belanger, Corey x Kennedy, Jr, Edward J. x Leahy, John J. x Martin Jr., William F. x Mercier, Rita M. x Milinazzo, James L. x Rourke, Daniel P. x x Samaras, William x x ADJOURNMENT 2. - Time for meeting to stand adjourned. Motion to Adjourn by C. Kennedy, seconded by C. Leahy. So voted. Meeting adjourned at 7:10 PM. Michael Q. Geary, City Clerk City of Lowell • 375 Merrimack Street • Lowell, MA 01852 • www.lowellma.gov