City Council Finance Sub Committee

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 Finance SC Minutes Date: June 30, 2020 Time: 5:00 PM Location: Zoom/Remote Participation PRESENT: Present on Roll Call were Chairman Elliott, C. Conway, and C. Nuon. Also present Conor Baldwin (CFO), C. Chau, C. Drinkwater, Allison Chambers (Asst. CFO), C. Mercier and Manager Donoghue. MEETING CALLED TO ORDER: C. Elliott called the meeting to order. ORDER OF BUSINESS: C. Elliott commented on how FY21 would begin as a 1/12th budget for a few months. Manager Donoghue noted that the new fiscal year would begin on July 1st and that a 1/12th budget has been adopted and indicated that there has been no indication from the State regarding what type of and the amount of aid going to the City at this time. Manager Donoghue noted that there would be less aid and less revenue to the City and that adjustments to budget would need to reflect that so there is a need for saving and cost measures. C. Elliott noted the need for updated communication as there a number of possible scenarios. Mr. Baldwin commented on the aid to school budget and the projections for the FY21 concerning that funding. Mr. Baldwin provided a historical prospective regarding difficult financial times and how the City responded to them. C. Elliott noted that there are certain fixed and contracted costs that will need to be covered. Mr. Baldwin commented on those costs; which included insurance, workers’ compensation and unemployment. C. Conway noted that planning would be difficult as there is uncertainty with local aid and questioned how long would the 1/12th budgeting be in place. Mr. Baldwin suggested that 1/12th budgeting would go for about three months and the sooner you are no longer using it the better it is. C. Nuon noted the need for 1/12 th budgeting while State handles their shortfalls. Motion by C. Nuon, seconded by C. Conway to provide lists of contractual obligations and school maintenance of effort. So voted. C. Nuon noted that communication must continue with school administration so that there are no surprises. City of Lowell • 375 Merrimack Street • Lowell, MA 01852 • www.lowellma.gov  (Page 2 of 2) Manager Donoghue commented on the budget approach on the school side. Manager Donoghue noted that there would be a deficit so cost savings must be implemented which may include work force reductions but the goal is to save jobs and avoid tax increases. Mr. Baldwin noted that salaries are the largest pool for cost savings and that capital projects could be delayed to avoid more debt. C. Elliott noted the need to keep Council informed of all possible changes. C. Chau commented on money not spent for FY20 on school side. Manager Donoghue noted schools had contractual obligations and heightened expenses associated with remote learning. Mr. Baldwin noted all unspent funds would become part of Free Cash account in the City. C. Elliott noted need to communicate with unions. Manager Donoghue noted discussions and proposals are taking place. C. Conway commented on the communications with the schools. Manager Donoghue and Mr. Baldwin outlined those meetings. C. Elliott commented on last quarter of FY20. Mr. Baldwin noted there was an increase regarding marijuana fees. C. Elliott questioned status of those establishments. Manager Donoghue noted all applications were complete and they await State approval and City permitting approval. ADJOURNMENT: Motion to adjourn by C. Nuon, seconded by C. Conway. So voted. Meeting adjourned at 5:50 PM. Michael Q. Geary, City Clerk City of Lowell • 375 Merrimack Street • Lowell, MA 01852 • www.lowellma.gov