Quincy City Council Finance Committee: April 13, 2026

• Governing Body: Quincy City Council Finance Committee
• Meeting Type: Finance Committee Meeting
• Date: April 13, 2026
• Chair: Deborah Riley
• Council Attendees: Anne Mahoney, Richard Ash, Noel DiBona, Walter Hubley, David Jacobs, Maggie McKee, Virginia Ryan, Ziqiang Yuan
• Administration Attendees: Christopher Walker (Mayor's Representative), Director of Municipal Finance

The committee discussed Order Number 2026-007, titled "An ordinance establishing fiscal safeguards, reserve protections, and financial transparency."

• Purpose: Councilor Anne Mahoney, the lead sponsor, stated the ordinance is intended to ensure long-term financial stability by creating standards for the use of one-time funds.
• Key Legal Language: Councilor Mahoney read the following into the record: "This ordinance is in front of us tonight because of a very real concern, the long-term financial stability of the city of Quincy... Using one-time money to lower taxes is like using your savings to pay off monthly bills. It works for a while, but eventually the money runs out."
• Concerns Raised:
  • Reliance on tens of millions in one-time funding (Free Cash, Stabilization Funds, Bond Proceeds) to offset the tax levy.
  • In FY2026, $34.5 million was used to artificially lower taxes.
  • Free cash was reported at only $2.4 million for a city of Quincy's size.

• Municipal Comparisons: Councilor McKee presented data from a Massachusetts Municipal Association meeting, comparing Quincy to Watertown.
  • Watertown (Population 35,000) holds a AAA bond rating and $33 million in free cash.
  • Quincy was noted as being at the bottom of the top 50 Massachusetts cities for free cash as a percentage of revenue and at the top for debt as a percentage of revenue.
• Public Survey: Councilor Ryan shared results from a constituent survey indicating deep concerns regarding:
  • Rising annual taxes and perceived lack of accountability in spending.
  • Inadequate tax relief for seniors.
  • Tax breaks for developers contributing to the residential tax burden.

Christopher Walker, representing the Mayor's office, provided a rebuttal to the concerns regarding financial fragility.

• Stabilization Funds: The city currently holds $9.8 million in its stabilization account, representing approximately 2% of the $450 million FY2026 general fund.
• Excess Levy Capacity: Walker argued that the city's $25 million in excess levy capacity acts as a "de facto reserve," allowing the city to stay under the Proposition 2 1/2 levy limit.
• Debt Clarification: The administration noted that Quincy's high debt ranking is skewed by the $475 million pension obligation bond, which replaced an unfunded liability with bonded debt.
• Free Cash Dispute: Walker clarified that the reported $55,000 in free cash is a specific accounting figure certified by the state after the city chose to use the bulk of available cash to offset the tax levy.

The committee explored the use of bond premiums and the status of city audits.

• Bond Premiums: The Director of Municipal Finance reported a current cash balance of $2.5 million in the premium account. An additional $12 million in premiums is anticipated from a bond offering later in the spring/summer.
• Audit Status: The city's auditor, CBiz (formerly Powers and Sullivan/Markham), provided draft FY2025 financial statements on March 25th.
• Transparency: Councilor Mahoney expressed concern that the use of bond premiums for capital expenditures and debt service has not historically been reviewed by the Council.

• School Capacity: Councilor Jacobs raised concerns regarding overcrowding at Lincoln-Hancock, noting that development in Southwest Quincy has outpaced school infrastructure. He criticized the administration for not building a new elementary school eight years ago when space issues were first identified.
• Revitalization: Councilor DiBona defended the administration's spending, citing the success of the District Improvement Financing (DIF) in revitalizing the downtown area and the $100 million investment in roads and sidewalks.

• Official Action: No vote was taken on Order Number 2026-007.
• Next Steps: The committee will continue the discussion in a future meeting. The administration's financial advisors from Hilltop Securities are scheduled to present a debt overview on April 27th.