Quincy City Council: October 20, 2025

Governing Body: City Council Meeting Type: Regular Meeting Meeting Date: Monday, October 20th, 2025 Attendees:

• Councillor Ashe
• Councillor Campbell
• Councillor Devine
• Councillor DiBona
• Councillor Harris
• Councillor Liang
• Councillor McCarthy
• Councillor Minton
• President King
• Mayor Thomas Peacock (for presentation)
• City Clerk (unnamed)

• The meeting was called to order by President King.
• Roll Call:
  • Councillor Ashe: Present
  • Councillor Campbell: Present
  • Councillor Devine: Present
  • Councillor DiBona: Present
  • Councillor Harris: Present
  • Councillor Liang: Present
  • Councillor McCarthy: Present
  • Councillor Minton: Present
  • President King: Present
• A moment of silence was observed.
• The Pledge of Allegiance was recited.
• The Open Meeting Law was read into the record by the City Clerk:

  "Pursuant to the open meeting law, any person may make an audio or video recording of this public meeting or may transmit the meeting through any medium. Attendees are therefore advised that such recordings or transmissions are being made, whether perceived or unperceived by those present, and are deemed acknowledged and permissible."

• Presenter: Mayor Thomas Peacock
• Overview: Mayor Peacock provided a detailed presentation on the city's debt and financial position, categorized into:
  • Debt Service by Category
  • Pension Obligation Bond (POB)
  • District Improvement Financing (DIF)
  • General Debt
  • Additional Financial Information

• Types of Debt:
  • Short-Term Debt: Primarily Bond Anticipation Notes (BANs), used for early project phases, with only interest paid initially.
  • Long-Term Debt:
    • General Debt: Includes $155 million in Massachusetts School Building Authority (MSBA) school construction projects, $100 million in self-supporting water/sewer debt (paid by ratepayers), and $50 million in Community Preservation Act (CPA) spending.
    • Projected savings over the life of the POB: $168 million.
• Pension Obligation Bond (POB):
  • The retirement system is governed by Mass General Laws Chapter 32.
  • Funded by mandatory employee contributions (9% plus 2% on earnings above $30,000) and annual city contributions based on an actuarial funding schedule, aiming for full funding by 2040.
  • Historical Context: Former City Councilor John Keenan had previously proposed a similar concept.
  • Timeline:
    • June 2015: Governmental Accounting Standards Board (GASB) introduced new reporting standards requiring public pension liabilities on balance sheets.
    • January 2020: Mayor initiated discussions with the municipal finance team.
    • March 2021: Milliman Consulting contracted for analysis.
    • August 2021: Ramirez & Company selected as senior manager for underwriting.
    • September 2021: Discussions with the state's Administration and Finance (A&F).
    • October 2021: A&F approved the POB issuance.
    • November 2021: S&P Global affirmed Quincy's AA long-term rating and stable outlook.
    • November 29, 2021: Sale date.
    • December 15, 2021: Closing date.
  • Key Outcome: The city secured a POB at a 2.62% interest rate.
  • Investment: $475 million was approved and invested directly with MassPrim, a respected pension fund manager.
  • Projected Savings: $168.5 million over the life of the bond.
  • Impact: Starting in 2026, the POB debt service remains constant at $37 million through 2040. Without the POB, the city's contribution would have been $50 million in 2026, increasing by 5.4% annually until 2040.
  • Aggregate Savings: The aggregate service cuts to the city without the POB would have been approximately $697 million.
• District Improvement Financing (DIF):
  • The downtown program is flourishing, building on former Mayor Phelan's rezoning efforts and the creation of the Urban Redevelopment District.
  • The DIF program, authorized by the City Council, allows new growth in value from commercial real estate within the district to fund infrastructure projects.
  • Growth Metrics:
    • General fund revenues increased 4.1% since 2007.
    • DIF revenues grew over 1,375% in the same period.
    • Downtown assessed value rose by 140.2%.
  • Self-Funding: The downtown infrastructure projects (e.g., moving the Brook, Hannon Parkway, utility upgrades, new bridge) are paid for by the DIF program, capturing new value.
  • Case Studies:
    • West of Chestnut: Significant increase in tax revenue post-development.
    • One Chestnut Place: Dramatic increase in tax revenue from the largest residential building.
    • Global Investors (former Coleman Sporting Goods site): Projected tax revenue increase from $43,000 to $500,000-$600,000 annually.
  • Recognition: The Mayor of Leominster, Dean Mazzarella, visited Quincy to study its successful DIF program.
• General Debt (Infrastructure and Schools):
  • Includes investments in education, with four major school construction projects completed and a new one (Squantum) underway.
  • Most other school buildings received MSBA grants for modernization (windows, boilers, roofs).
  • Projects are financed through local bonding and significant state reimbursement.
  • Christopher Harris Center:
    • Funded by ESSER and ARPA monies (federal funds) and a county share (approximately $20 million).
    • First special needs municipal built, owned, and operated center in Massachusetts.
    • Projected savings of $3-4 million over the next few years by bringing special education students back to the city from outsourced programs.
  • Infrastructure Improvements:
    • Approximately 44% of city streets have been redone in the last decade.
    • Annual Chapter 90 funding: $1.9 million. Current spending: $24 million.
    • Public Safety Headquarters on C Street: A 100-year building constructed with high-quality materials.
    • Seawall improvements: Adam Shore seawall lifted by two feet; total of 12,000 linear feet planned for Adam Shore and Manet Avenue.
• Excess Levy Capacity:
  • Quincy's excess levy capacity is substantial, with $31 million left on the table this year.
  • Since 2008, 198 cities/towns requested 923 overrides (506 passed). In the last five years, 220 requests (141 passed).
  • Quincy has left $442 million of unused excess levy capacity since the Mayor took office.
  • Comparison: Many neighboring communities (e.g., Somerville, Braintree, Weymouth) have required Proposition 2 1/2 overrides for school funding or operating expenses, unlike Quincy.
• Other Performance Indicators:
  • Residential tax rate: Among the lowest 40% statewide.
  • Tax burden: Approximately 50% (middle of the range) for services that are "top of the heap."
  • Assessed valuations increased by 32% since 2021.
  • Unemployment rates: Outperformed state and national averages since the pandemic.
  • Strategic partners: Strong relationships with state and federal entities for grants and funding.

• Councillor McCarthy:
  • POB Funding: Clarified that the $475 million POB was an addition to an existing $400 million, bringing the system to 100% funding.
  • Current POB Value: Noted the POB's current value is around $880 million, recently $930 million, demonstrating positive market performance.
  • Savings: Emphasized the staggering savings from the fixed $37 million annual payment compared to the escalating payments without the POB (e.g., $73 million in 2033).
  • DIF Short-Term BANs: Asked for more detail on how short-term BANs transition to permanent financing within the DIF.
  • Coleman's Site: Highlighted the significant tax revenue increase from the former Coleman's site (from $50,000 to $500,000-$600,000) as an example of DIF success, even with land disposition agreements.
  • School Debt: Inquired about older school projects (e.g., Quincy High) coming off the debt rolls.
  • $16 Million Ledger Comment: Asked for clarification on a Ledger article regarding a $16 million payment, which the Mayor stated was unnecessary given the fully funded system and ongoing actuarial review.
• Councillor Campbell:
  • $16 Million Payment: Expressed comfort with the Mayor's explanation regarding the $16 million, noting the 2040 full funding target and the dynamic nature of the number.
  • Borrowing Capacity: Inquired about the city's borrowing capacity and any concerns about future funding. Mayor stated the city is in a good place, with strong confidence from the market and competitive rates.
  • Federal Funding: Asked if there was any fear of federal funding reimbursements being affected. Mayor stated no current impact on CDBG or other grants, but they are monitoring the situation.
• Councillor DiBona:
  • Department Head Collaboration: Praised the working relationship between department heads/commissioners and the City Council.
  • "Big Five" Budget Items: Referenced the consistent challenge of funding schools, police, fire, health insurance, and pensions.
  • POB "Sweet Spot": Acknowledged the 2.62% POB rate as a "sweet spot" that other municipalities can no longer achieve.
  • External Funding: Highlighted $41 million from National Grid and MassDOT for projects like the C Street project, demonstrating how city investment attracts external funding.
  • General's Bridge Area Development:
    • North of Bridge (Beth Israel Medical Building): 110,000 sq ft building with urgent care, day surgeries, and primary care. State contributing $25 million to a $50 million garage.
    • South of Bridge (Atlantic Development and Hanover Development): Specialty grocer, other retail, 300 housing units, and another garage. Significant tax revenue increase expected.
  • MSBA Process: Asked for an explanation of how MSBA reimbursements work (city bonds for full amount, then reimbursed along the way).
  • Inflation: Inquired about the impact of inflation on projects. Mayor stated inflation has flattened out, and construction costs are more predictable now compared to post-pandemic.
• Councillor Liang:
  • DIF Long-Term Plan: Asked about the long-term plan for the DIF, specifically when the funds would no longer be focused on downtown and would revert to the general fund. Mayor clarified that excess DIF revenue already goes to the general fund and that ongoing development continues to push out the need for DIF.
  • Wollaston Redevelopment: Inquired about the timeline for state approval of the Urban Redevelopment District in Wollaston and the subsequent DIF district. Mayor expects imminent approval and activity by next spring, noting ongoing work with DEP on drainage issues.
  • Dialogue and Collaboration: Emphasized the importance of dialogue and collaboration between the Mayor's office and the City Council, even on issues where there is disagreement (e.g., POB).
• Councillor Ashe:
  • DIF Case Studies (Slides 15 & 16): Clarified that "Without West of Chestnut" refers to prior collected taxes, and "With West of Chestnut" refers to actual collected taxes post-development.
  • Pension Commission Order: Asked if an order from the Pension Employee Retirement Administration Commission (PERAC) is standard for the annual budget. Mayor stated the city receives a "bill."
  • Milliman Second Opinion: Inquired about the timeline for Milliman's second opinion on the actuarial study. Mayor expects it before the end of the calendar year, noting a "battle of the experts" regarding assumptions.
  • S&P Report and Bond Rating: Asked about the timeframe for the city's bond rating and economic outlook to bounce back. Mayor stated the primary concern from S&P was increasing reserves, but the city remains competitive in the market.
  • Property Tax Rates: Inquired about the property tax rates for the next year. Mayor stated it's too early, awaiting free cash certification and new growth numbers.
• Councillor Devine:
  • Public Perception of Debt: Addressed public confusion regarding the city's debt and the $1.6 billion figure, emphasizing the benefits of the city's financial strategy.
  • Comparison to Other Communities: Highlighted Quincy's superior police and fire departments and infrastructure compared to other communities, attributing it to proactive financial management.
  • Crown Colony Development: Noted national investors' interest in Quincy despite volatile market conditions elsewhere.
  • Milton's Pension Obligation: Asked about Milton's pension situation as a comparison. Mayor stated only a handful of communities statewide are in better shape than Quincy regarding pensions.

• Motion: To approve the previous meeting minutes.
• Moved by: Councillor Liang
• Seconded by: Councillor McCarthy
• Vote:
  • All in favor: Aye
  • Opposed: None
• Outcome: Motion passed.

• No items.

• No items.

• Ordinance Committee:
  • Chair: Councillor Liang
  • Item: 2025-118 (Ward 4, Councillor Devine) - Add two stop signs on Kimball Street at Campbell Street, creating a four-way stop.
  • Recommendation: Positive recommendation out of committee.
  • Motion: To approve the recommendation.
  • Moved by: Councillor Liang
  • Seconded by: Councillor McCarthy
  • Roll Call Vote:
    • Councillor Ashe: Yes
    • Councillor Campbell: Yes
    • Councillor Devine: Yes
    • Councillor DiBona: Yes
    • Councillor Harris: Yes
    • Councillor Liang: Yes
    • Councillor McCarthy: Yes
    • Councillor Minton: Yes
    • President King: Yes
  • Outcome: Motion passed (9-0).

• Councillor DiBona:
  • Thomas Arnett: Recognized the passing of Thomas Arnett, a lifelong Quincy resident, 86 years old. Served over 40 years in the National Guard, retiring as a Colonel. Worked as an insurance claim manager for 26 years. Wake held tonight, funeral tomorrow at 10:30 AM at St. Anne's Church.
  • Dr. Carmen Mariano: Recognized the passing of Dr. Carmen Mariano on October 15th at 78 years old. Survived by his wife, Didi Fagerlund Mariano (52 years of marriage), sister Natalie Mariano, and three children: Eric Fagerlund, Justine Fagerlund, and Courtney Fagerlund. A long career in education, remembered for his passion, devotion, and kindness. Funeral mass on Saturday, October 25th at 10 AM at St. Paul's Church in Hingham, followed by burial at Mount Wollaston Cemetery.
• Councillor Campbell:
  • Brady O'Connor: Recognized the passing of Brady O'Connor, who immigrated from County Kerry in 1959 and lived in Adam Shore. She was 82 years old, raised eight children, and had 12 grandchildren. Married for 58 years. Worked as a nurse at the old Quincy Hospital. Mother of Lieutenant and Deputy Fire Chief Kevin O'Connor. Services on Wednesday at Magoun-Biggins Funeral Home in Rockland, mass on Thursday at 9 AM at Holy Family Church in Rockland.
• Councillor Devine:
  • Reiterated thoughts and prayers for the O'Connor family.

• No items.

• Next regularly scheduled City Council meeting: Monday, November 10th at 6:30 PM.

• Motion: To adjourn the meeting.
• Moved by: Councillor Liang
• Seconded by: Councillor McCarthy
• Vote:
  • All in favor: Aye
  • Opposed: None
• Outcome: Motion passed.
• The meeting was adjourned.