Executive Summary
The Ways & Means Committee held a hearing on May 27, 2026, to discuss Docket #1030, a supplemental appropriation of $47,120,292 from free cash to fund snow and winter management for the fiscal year ending June 30, 2026. Budget Director Jim Williamson and CFO Ashley Grafenberger testified that the request was necessitated by the coldest and snowiest winter in 11 years, featuring 61.6 inches of snow and 20 distinct weather events. The committee explored the impact on the city's $601 million certified free cash balance, the legal framework for overspending snow budgets under state law, and the rising costs of contractors and equipment compared to historical benchmarks. No formal vote was taken during this hearing, which also briefly addressed a separate $22.8 million supplemental for Boston Public Schools (Docket #1031).
Meeting Information
- Governing Body: Boston City Council, Ways & Means Committee
- Meeting Type: Committee Hearing
- Date: May 27, 2026
- Time: 10:19 AM
- Chair: Councilor Benjamin Weber
- Attendees:
- Councilor Benjamin Weber (Chair)
- Councilor Miniard Culpepper
- Councilor John Fitzgerald
- Councilor Erin Murphy
- Councilor Edward Flynn
- Councilor Liz Breadon (Council President)
- City Officials Present:
- Ashley Grafenberger, Chief Financial Officer
- Jim Williamson, Budget Director
Docket #1030: Snow and Winter Management Supplemental Appropriation
The primary focus of the hearing was Docket #1030: "Message and order authorizing the City of Boston to appropriate the amount of $47,120,292 For purposes of funding the snow and winter management appropriation to meet operating expenses of the fiscal year, fiscal period commencing July 1st, 2025 and ending June 30th, 2026."
Key Discussion Points:
- Winter Severity: The 2025-2026 winter saw 61.6 inches of snow, the highest in 11 years. There were 20 distinct winter weather events, including a January storm with 23.2 inches and Winter Storm Hernando in February with 17.1 inches.
- Cost Drivers: Expenses included emergency contractors, staff overtime, roadway treatments (salt), and the rental of snow melters due to a lack of available snow storage sites (snow farms).
- Legal Authority: The city utilized Massachusetts General Law Chapter 44, Section 31D, which allows municipalities to exceed snow appropriations. Budget Director Williamson noted: "Mass General Law Chapter 44, Section 31D Allows for municipalities to exceed their small appropriation... as long as you haven't reduced your prior year's appropriations."
- FEMA Ineligibility: Unlike the 2015 winter, Suffolk County did not meet the federal formula requirements for FEMA reimbursement for the 2026 storms.
Financial Impact and Free Cash Reserves
The administration proposed funding the supplemental requests using the city's free cash reserves.
Financial Breakdown:
- Docket #1030 (Snow): $47,120,292
- Docket #1031 (BPS): $22,800,000 (for health insurance and utilities)
- Total Supplemental Draw: ~$70 million
- Total Free Cash Draw (including OPEB): $110 million for FY26.
- Certified Free Cash Balance: $601 million.
- Unassigned Fund Balance: $1.2 billion.
Policy and Ratings:
- CFO Grafenberger stated that the city's policy is to maintain an unassigned fund balance of at least 15% of expenses. The city is currently at approximately 24-30%, exceeding both internal policy and Moody's AAA rating requirements (25%).
- The administration defended the use of free cash for snow as a "one-time extraordinary" expense, adhering to Division of Local Services (DLS) guidance.
Councilor Inquiries and Operational Analysis
- Contractor Costs: Councilor Culpepper requested a breakdown of contractor spending versus in-house operations. Director Williamson noted that contractor rates increased significantly in FY25 due to a new three-year contract cycle.
- Snow Melters: Councilor Culpepper inquired about purchasing versus renting snow melters. The administration noted that while renting is the current model, they are open to a cost-benefit analysis of purchasing, despite maintenance challenges in urban environments.
- Deficit Prevention: Councilor Flynn questioned the characterization of free cash use as "fiscally irresponsible" in other contexts. CFO Grafenberger clarified that while not recommended for ongoing operations, it is appropriate for emergency shortfalls to prevent the city's books from ending in a deficit, which would harm bond ratings.
Public Testimony
Speaker: Gregory Maynard, Executive Director of the Boston Policy Institute (BPI)
- Summary: Mr. Maynard argued that the FY26 deficit was driven by inaccurate health insurance forecasting rather than just snow. He noted that BPS had to add $16 million to its health insurance budget at the last minute in March.
- Direct Quote: "Something seems to be wrong with Boston's health care spending, and this council needs to figure out what it is."
Other Business: Retiree COLA and Health Insurance
- Retiree Advocacy: Councilor Flynn advocated for a 3% Cost of Living Adjustment (COLA) and an increase in the COLA base for city retirees. CFO Grafenberger noted that increasing the base by $3,000 would result in a $90 million increase to the city's unfunded liability.
- Health Insurance Negotiations: The city is currently negotiating a successor five-year agreement with the Public Employee Committee (PEC) for FY28. Recent negotiations regarding GLP-1 (weight loss) drugs yielded savings through new utilization management protocols.