Executive Summary
On May 26, 2026, the Ways & Means Committee held a hearing to review the FY27 operating budgets for the Assessing, Auditing, and Treasury departments, alongside the FY27-FY31 Capital Plan. The session covered the city's $2.46 billion payroll, property tax collection rates of 99.1%, and the management of Boston's $295 billion property valuation. Key discussions included the transition of ARPA-funded compliance roles to the operating budget, the impact of Federal Reserve rates on interest revenue, and the equitable distribution of capital investments across neighborhoods like Allston-Brighton and Mattapan. The committee also explored a policy shift in debt amortization intended to provide $30 million in short-term fiscal flexibility.
Meeting Overview and Attendees
The hearing was called to order at 10:09 AM by Councilor Ben Weber, Chair of the Committee on Ways and Means. The meeting focused on Dockets #0733-0740, regarding the FY27 operating budgets for Assessing, Auditing, and Treasury, as well as the FY27-FY31 Capital Plan.
Attendees:
- Councilor Ben Weber (Chair)
- Councilor Edward Flynn
- Councilor Ruthzee Louijeune
- Councilor Sharon Durkan
- Councilor Liz Breadon
- Councilor Miniard Culpepper
- Councilor John Fitzgerald
- Councilor Enrique Pepén
- Councilor Erin Murphy
Panelists:
- Scott Finn, City Auditor
- Nicholas Aranello, Commissioner of Assessing
- John Hernandez, Second Assistant Collector Treasurer (Collecting Division)
- Jerica Bradley, First Assistant Collector Treasurer (Treasury Division)
- Ian Donnelly, Deputy Budget Director and Director of Capital Planning
Auditing Department Budget and Compliance
City Auditor Scott Finn presented the department's mission and performance metrics.
Key Statistics (FY25):
- Processed approximately 146,000 vouchers for over 11,000 vendors.
- Reviewed and approved over 2,200 contracts.
- Managed payroll for 29,800 employees, totaling $2.46 billion.
- Published the Annual Comprehensive Financial Report and Single Audit (covering 12 federal programs).
Compliance Initiatives:
- The department plans to transition a compliance officer position from ARPA funding to the operating budget in FY27 to maintain oversight of federal grant monitoring and subrecipient compliance.
Assessing Department and Property Valuations
Commissioner Nicholas Aranello provided an overview of the city's $295 billion property tax base.
Departmental Highlights:
- Property taxes generated over $3.5 billion in revenue for FY26.
- Over 75,000 properties received the residential exemption.
- The department manages over 190,000 real estate and personal property accounts.
Discussion Points:
- Assessment Accuracy: Councilors questioned the gap between assessed values and recent high-value sales. Aranello explained that state law requires a lag in data (FY26 assessments are based on January 1, 2025, values using 2024 sales data).
- Staffing: The department currently has approximately 20 vacancies, which Aranello noted makes the "Herculean task" of annual valuation more difficult.
- Leadership Transition: Commissioner Aranello announced he is leaving the department after 20 years of service.
Treasury and Collecting Divisions
The Treasury and Collecting divisions reported on revenue management and fiscal health.
Collecting Division (John Hernandez):
- Maintained a collection rate of 99.1% for FY25.
- Recovered $26.1 million through delinquent account outreach in FY25.
- Goal to reduce tax takings by 700 parcels through proactive outreach with the Mayor's Office of Housing and Age Strong.
Treasury Division (Jerica Bradley):
- Manages over $100 million in monthly payroll and $200 million in monthly vendor payments.
- Interest Revenue: Projections for interest revenue are down due to Federal Reserve rate changes. The department is monitoring asset allocation to normalize these returns within the 14 asset classes allowed by state law.
FY27-FY31 Capital Budget and Debt Management
Ian Donnelly presented the five-year capital plan, focusing on neighborhood investments and debt strategy.
Debt Amortization Policy:
- The administration proposed a policy change to pay off no less than 30% of debt within the first five years (a decrease from the previous 35-40% target).
- This change is intended to provide $30 million in debt service flexibility for FY27.
Neighborhood Investments:
- Councilors Louijeune and Pepén raised concerns about the "Citywide" classification of projects, which can obscure the actual level of investment in specific neighborhoods like Mattapan and Roxbury.
- Specific Project Updates:
- Shaw-Taylor School: Advancing through the MSBA process; exterior work to bid soon.
- North End and South Boston Libraries: Current plans focus on "state of good repair" (HVAC and windows) rather than full reconstruction.
- Jackson Mann Community Center: Acknowledged as a point of frustration for Allston-Brighton residents due to planning delays.
Public Testimony
Several residents and organization representatives provided testimony:
- Gregory Maynard (Boston Policy Institute): Criticized the administration's revenue forecasting, stating, "Inaccurate revenue forecasts were in Mayor Wu's favor in her first term... now, in FY26, however, those inaccurate forecasts are hurting the city."
- Kevin Norton (Brighton Resident): Expressed frustration over the Jackson Mann Community Center, calling its condition a "pattern of political emasculation" of Allston-Brighton.
- Ryan Kelso (Allston-Brighton Progressives): Noted that Allston-Brighton has the fourth-lowest per capita capital budget ($500 per resident) despite having fewer community center resources than other neighborhoods.
- Jason Yutkins (Boston EMS): Urged the council to prioritize EMS infrastructure, stating that many facilities "no longer meet the demands of a modern EMS system."
- DB (Brighton Resident): Raised concerns regarding tax equity in condo conversions, suggesting that land becomes non-taxable once a building is converted to condos, shifting the tax burden.