City Council - Post-Audit: Government Accountability, Transparency, & Accessibility Committee Hearing on Docket #1446

Meeting Date: November 17, 2025 at 02:00 PM Governing Body: Boston City Council Type of Meeting: Committee Hearing Attendees:

Julia Mejia, Councilor (Chair)
John Fitzgerald, Councilor
Henry Santana, Councilor
Brian Worrell, Councilor
Ashley Groffenberger, Chief Financial Officer for the City
Jim Williamson, Budget Director
Scott Finn, City Auditor

Executive Summary: The City Council's Post-Audit: Government Accountability, Transparency, & Accessibility Committee convened to review the first quarter (Q1) expenditures for Fiscal Year 2026 (FY26), ending September 30, 2025. Key discussions focused on departmental spending benchmarks, budgetary pressures such as public safety overtime and court settlements, and the city's financial resiliency plans. The committee also explored the process for internal budget transfers and the impact of federal funding changes. The administration provided insights into the $4.84 billion operating budget, noting that $1.3 billion (28%) had been expended in Q1, with certain early-year expenses like pensions and OPEB trust fund payments contributing to this figure.

I. Call to Order and Meeting Logistics

Councilor Julia Mejia, Chair of the Committee, called the meeting to order at 2:03 PM.
The hearing was conducted virtually via Zoom in accordance with Chapter 2 of the Acts of 2025, modifying Open Meeting Law requirements.
The hearing was recorded and livestreamed on boston.gov/city-council-tv and broadcast on Xfinity Channel 8, RCN Channel 82, and Biles Channel 964.
Written comments could be submitted to ccc.gata@boston.gov.
Public testimony was scheduled for the end of the hearing, with individuals allotted approximately two minutes to speak. Sign-up was available via email to karishma.chouhan@boston.gov.

II. Docket #1446: Review of FY26 Operating Budget Expenditures

Sponsor: Councilor Julia Mejia
Referral Date: August 6, 2025
Purpose: To review past expenditures through quarterly updates on the FY26 operating budget, specifically focusing on Q1 expenditures (through September 30, 2025).

III. Administration Presentation on Q1 FY26 Expenditures

Ashley Groffenberger, Chief Financial Officer, introduced the presentation, joined by Jim Williamson, Budget Director, and Scott Finn, City Auditor.
FY26 Operating Budget: The total annual operating budget for FY26 is $4.84 billion.
Q1 Expenditures (as of September 30, 2025): $1.3 billion, representing 28% of the total budget.
Early-Year Expenses:
- Pensions: $468 million paid to the Boston Retirement System.
- Boston Public Health Commission: Higher-level budgetary expenses delivered upfront.
- Other Post-Employment Benefits (OPEB) Trust Fund: Payments made for long-term liability investment.
Budgetary Pressure Points:
- Court judgments and settlements (variable and unpredictable).
- Public safety overtime (Police and Fire Departments).
- Operational overtime (e.g., 24/7 roles, security property management).
- Boston Transportation Department (BTD) deployment issues (parking enforcement, technology vendor change for curb management).
- YouthJobs program fulfillment (requires greater than anticipated support, evolving ecosystem).
- Snow removal and winter management (extended cold periods, sleet, freezing rain).
Enterprise Approaches to Budget Management:
- Continuous sharing of information (e.g., this forum, ENF staff meetings).
- Adherence to financial policies, procedures, and controls.
- Regular review of positions (posting, filling, changes).
- System-driven expenditure controls to prevent exceeding budget.
- Budget office review of transfers.
- Management of fixed costs (e.g., debt structuring, timing, size, amortization with third-party consulting).

IV. Councilor Questions and Discussion

Councilor John Fitzgerald joined the meeting.
Councilor Mejia's Questions:
- Departments below 25% benchmark: Noted significant underspending in departments like Human Rights Commission (2%), Office of Fair Housing and Equity (5%), Arts and Culture (12%), and Diversity, Supplier Diversity (10%).
  - Jim Williamson's Response: Often due to vacancies (intentional salary savings budgeted) or seasonality of activities.
- Departments over 25% benchmark: Police overtime (44% spent), Fire Department (over 50% spent).
  - Jim Williamson's Response:
    - Police Overtime: Driven by resource deployment in areas like Mass and Cass, community events, protests, and elections.
    - Fire Overtime: Due to minimum staffing requirements, covering leaves, injuries, vacation, and sickness. Noted success in occupational safety group for police reducing injured officers.
- Execution of Courts: $12 million spent, no designated allocation visible.
  - Jim Williamson's Response: Recurring base level of claims as a self-insured organization (motor vehicle accidents, property damage). A significant settlement drove Q1 expenditures. Projections are challenging, deferring to the Law Department for specifics.
Councilor Fitzgerald's Questions:
- Budgetary Pressures: Sought clarification on the "budgetary pressures" list.
  - Jim Williamson's Response: These are variable items that are difficult to predict and manage, not necessarily discretionary or "on the chopping block." Examples include public safety overtime, court settlements, and snow removal, which are legally authorized to exceed budgets.
- Future Budgetary Pressures: Inquired about the impact of federal cuts or commercial abatements.
  - Jim Williamson's Response: Health benefits costs are super-inflationary and a concern. Formula-driven federal grants are stable, but discretionary grants may be challenging to secure.
Councilor Mejia's Follow-up Questions:
- Resiliency Plans: Asked about flexibility in departmental spending given federal funding cuts.
  - Ashley Groffenberger's Response: The FY26 budget was deliberately constrained with "belt-tightening" adjustments. The city maintains reserves for unexpected issues.
- Emergency Fund for Vulnerable Populations: Inquired about an emergency fund for situations like Fenway Health's decision regarding gender-affirming care due to federal threats.
  - Ashley Groffenberger's Response: No specific city-side fund for this; would require further conversation. The city's general reserves address broader issues.
- Directives to Slow Spending: Asked if departments were directed to slow spending.
  - Ashley Groffenberger's Response: No specific directives currently; monitoring economic conditions and revenues. The city can react if adjustments are needed.
- Capital Budget Expenditures: Requested insight into spending on various projects, specifically White Stadium.
  - Ashley Groffenberger's Response: Operating expenditures were provided; capital expenditure data was not immediately available but could be provided later.
- BPD Asset Purchases: Requested the dollar amount for asset purchases conducted by BPD from seized property.
  - Ashley Groffenberger's Response: Will follow up to provide this information.
- Indemnification vs. Execution of Courts: Asked for clarification on the difference.
  - Jim Williamson's Response: Indemnifications are lines in public safety agencies (Police, Fire) for medical expenses (similar to workers' comp) for officers injured in the line of duty. Execution of courts covers court settlements and other claims.
- Legal Basis for Exceeding Appropriations: Inquired about legal provisions beyond Acts of 1992 Chapter 190, Section 17, allowing liabilities incurred by police, fire, and execution of courts to exceed appropriations. Also asked for the city's definition of "extreme emergency involving health and safety of the people or their property" and if it was used during COVID-19.
  - Jim Williamson's Response: State laws allow snow emergency funding and judgments/settlements to exceed appropriations. During COVID-19, many emergency response expenses were covered by FEMA external grants, not this specific provision.
- Auditing Measure of Budget Fidelity: Asked if auditing measures how true the adopted budget is to the final departmental budget.
  - Jim Williamson's Response: (Implied: Yes, through various controls and reviews).
- Internal Transfers Process: Asked about the process, metrics for approval/disapproval, and tracking.
  - Jim Williamson's Response: Initiated by departments in the financial system, routed to analysts for review. Analysts consider both the need for the transfer and the availability of resources from other accounts. Operational expertise is deferred to departments, while fiscal responsibility is maintained.
- Parks and Recreation Budget: Noted a nearly $2 million decrease in permanent employees.
  - Ashley Groffenberger's Response: Will investigate, as initial data suggests an increase, not a decrease.
Councilor Henry Santana joined the meeting.
Councilor Mejia's Question to Ashley Groffenberger (for Councilor Santana): Asked for an update on youth jobs expenditures and future anticipations, given its status as a budgetary pressure.
- Ashley Groffenberger's Response: The YouthJobs program has significantly expanded, a priority for both administration and council. It has been a cost pressure, managed by applying savings from other areas. The city is monitoring and ensuring sufficient appropriation to meet the need, with close discussion with the council on any changes.
Councilor Brian Worrell joined the meeting.
Councilor Worrell's Questions:
- Revenue Projections: Inquired about the city's new growth projection of $60 million and requested quarterly revenue reports.
  - Ashley Groffenberger's Response: Can provide Q1 revenue projections, but noted that early-year data can be less indicative of full-year trends. Agreed to revisit revenue projections in six months.
- FY25 Year-End Transfers: Asked about the release and timeline.
  - Ashley Groffenberger's Response: Still working on closing books and external audit; information expected by the end of next month.
- Bond Sales: Asked for an update on scheduled bond sales from May.
  - Ashley Groffenberger's Response: Did not pursue a refunding in May due to unfavorable market conditions but did sell regular general obligation bonds.
- Salary Savings/Vacancies: Asked about the location of salary savings, particularly in departments with hiring issues, for the current fiscal year.
  - Jim Williamson's Response: Salary savings are proactively budgeted for turnover. It's difficult to determine specific departmental impacts after only three months due to seasonality.
- BPPA Contract Extension: Asked about the $6.7 million estimated cost for the one-year contract extension with the Boston Police Patrolmen's Union.
  - Ashley Groffenberger's Response: Costs are anticipated and reserved for in the collective bargaining reserve within the budget. It's not a net new increase but a shift from the reserve, approved through supplemental appropriations.
- Future Budget Outlook: Asked about the likelihood of departments exceeding budgets and expectations for the FY27 budgeting process.
  - Ashley Groffenberger's Response: Aside from perennial pressures (public safety overtime, settlements, snow), departments are generally on track for Q1. The city has mechanisms to address overages. The FY27 picture is murky, but the city's strong financial management and stable property tax base provide stability amidst uncertainty.

V. Public Testimony

No public testimony was received.

VI. Adjournment

Councilor Mejia expressed gratitude to the administration and central staff.
Future hearings will likely delve deeper into revenue and the capital budget.
The hearing on Docket #1446 was adjourned.

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