Finance Committee

Meeting Minutes: Finance Committee of the Somerville City Council

Meeting Type: Finance Committee Meeting Governing Body: Somerville City Council Meeting Date: June 18th, 2025 Attendees:

• Jake Wilson, Councilor at Large, Finance Committee Chair
• Will Mbah, Councilor
• Willie Burnley, Councilor
• Jesse Clingan, Councilor
• J.T. Scott, Councilor
• Kimberly Wells, City Clerk
• Matt Sano, Superintendent of Inspectional Services
• Angela Allen, Chief Procurement Officer
• Ann Gill, Director of Human Resources
• Ellen Collins, Deputy Director of HR
• Rene Mello, Worker's Compensating Manager
• Lisa Jones-Brinkley, Benefits Manager
• Kristen Hill, Recruitment and Retention Manager
• Jessica Paveo, HR Admin Manager
• Sue Yerkes, Parks and Recreation Director
• Linda, Finance Manager, Parks and Recreation
• Yanni Taragades, Director of Operations, Parks and Recreation
• Gregory Jenkins, Director of Arts Council
• Mike Mastroboni, Budget Director
• Ed Bean, Finance Director
• Cheryl Cruz, Deputy Treasurer
• Nick Dervis, Deputy Collector
• Chief Assessor Golden

Executive Summary: The Finance Committee convened for its third night of departmental budget hearings for the proposed FY2026 budget. Key discussions included Inspectional Services' efforts to track short-term rentals and enforce the vacant properties ordinance, the City Council's budget, and the City Clerk's office's readiness for new licensing types. Human Resources addressed increases in health and life insurance costs and pension contributions. Parks and Recreation discussed budget allocations, enterprise fund projections, and the impact of capital projects on future operating costs. The meeting concluded with a review of non-departmental items, including debt service and the city's capital planning strategy.

I. Call to Order and Roll Call

• Chair Jake Wilson called the meeting to order at 6:01 p.m.
• The meeting was conducted via remote participation as per Chapter 2 of the Acts of 2023.
• Roll Call:
  • Councilor Mbah: Present
  • Councilor Burnley: Present
  • Councilor Clingan: Present
  • Councilor Scott: Present
  • Chair Wilson: Present
• A quorum was established.

II. Introduction to Budget Hearings

• Chair Wilson welcomed attendees to the third night of departmental budget hearings for the proposed FY2026 budget.
• He acknowledged counselors' submitted questions and the new format for budget season, including an additional Monday night meeting for follow-up questions.
• Motions for cuts or resolutions for additional funding would be tabled until "cut night" on Tuesday, June 24th.

III. Departmental Budget Reviews

A. Inspectional Services (ISD)

• Short-Term Rentals:
  • Councilor Burnley inquired about investments to track short-term rentals, noting reduced software allocation.
  • Superintendent Matt Sano stated ISD is exploring options for proactive identification, acknowledging current software is more reactive.
  • Chair Wilson mentioned attending the Mass Municipal Association conference and speaking with vendors offering sophisticated software for tracking short-term rentals and potential revenue generation. He expressed interest in following up with Director Bean and ISD on these options.
• Vacant Properties Ordinance:
  • Councilor Scott asked about the enforcement of the vacant properties ordinance, noting its absence in the departmental memo.
  • Superintendent Sano indicated that staff allocation would need to be reviewed and suggested discussions on potential updates to the ordinance to make it more enforceable for ISD.
  • Councilor Burnley inquired if a supplemental allocation would be appropriate for enforcement or if the administration sought changes to the ordinance. Superintendent Sano expressed openness to discussions on updates.
• Staffing and Vacancies:
  • Councilor Burnley asked about vacancies in ISD.
  • Superintendent Sano reported that a building inspector position is filled and will start in the new fiscal year, bringing all staff-level positions to full capacity, except for the director position.
  • Councilor Burnley questioned if current staffing levels would be sufficient to meet inspectional needs and expedite the permitting process. Superintendent Sano stated they are in a "pretty good place" but acknowledged process improvements could always be made.
• Permitting Process Simplification:
  • Councilor Mbah asked about steps ISD is taking to simplify and improve access to permitting and inspection services, especially for non-English speakers and first-time applicants.
  • Superintendent Sano stated that optimizing applications and permitting processes, creating better materials, and addressing language barriers are goals for FY2026.
• Motions: No motions were made regarding Inspectional Services.

B. City Council & Clerk of Committees

• In-State Conferences:
  • Councilor Burnley asked why the budget for in-state conferences was exceeded.
  • City Clerk Kimberly Wells explained that more counselors attended the Mass Municipal Association Conference than in previous years, leading to the overage. The FY2026 budget has been increased to reflect this.
• Budget Static Nature and Legal Services:
  • Councilor Burnley noted the generally static nature of the City Council budget over the years and the "relative de-funding of the legal services line."
• Motions: No motions were made regarding City Council or Clerk of Committees.

C. City Clerk

• Motions: No questions or motions were made regarding the City Clerk's budget.

D. Licensing Commission

• New Licensing Types:
  • Councilor Burnley inquired if additional funding would be needed to create new licensing types, specifically mentioning cannabis hospitality, event organizer, and supplemental licenses.
  • City Clerk Kimberly Wells stated no additional funding is needed, as the council previously provided funding for an additional position in the City Clerk's office, which is supporting the infrastructure for new license types. The primary delay is awaiting state regulations.
• Motions: No motions were made regarding the Licensing Commission.

E. Law Department

• Special Items Allocation:
  • Councilor Mbah inquired about a $529,000 "special item" listed in the May 29th memo for the Law Department.
  • Budget Director Mike Mastroboni clarified that the $529,000 is allocated to Human Resources, not the Law Department, for items such as union-related educational programs, fluency bonuses, and the MBTA PASS program.
• Outside Litigation and Contract Work:
  • Councilor Mbah asked about outstanding outside litigation or contract work, noting past supplementary appropriations for items like the 90 Washington Street case and the storm sewer treatment agreement.
  • City Solicitor stated that the water and sewer outflow project contract was recently finalized, requiring a recent appropriation.
• Judgments and Settlements:
  • Councilor Mbah questioned the discrepancy in numbers for judgments and settlements, noting a $60 million payment for 90 Washington Street in FY25 and a budgeted amount of $250,000 for FY26.
  • Budget Director Mike Mastroboni clarified that the $60 million was a supplemental appropriation for the 90 Washington case settlement. He explained that "building insurance" and "judgments and settlements of claims" are two separate programs that appear in the same report, and the FY26 budgeted amount for judgments and settlements is $250,000.
• Legal Assistance Programs:
  • Councilor Mbah asked if costs for legal assistance for immigrants and low-income tenants were under the Law Department.
  • City Solicitor stated these costs are under the SomerViva budget.
• Online Subscriptions:
  • Councilor Burnley noted that actual spending for online subscriptions in FY25 exceeded the budgeted amount by approximately $4,000, but the FY26 allocation remained at $12,000. He asked for clarification.
  • City Solicitor explained that the department procured a few small, helpful items during the year, and other items were no longer necessary, resulting in a net neutral effect on the budget for FY26.
• Motions: No motions were made regarding the Law Department.

F. Damages to Persons and Property

• Motions: No questions or motions were made regarding Damages to Persons and Property.

G. Elections

• Braille and Accessibility:
  • Councilor Burnley inquired about the city's acquisition and usage of a Brailler and its role in providing Braille notebooks.
  • Chairman Salerno explained that the department uses "auto-mark machines" in every precinct, which have Braille capabilities for voters with disabilities, allowing them to mark their ballots independently.
• Motions: No motions were made regarding Elections.

H. Auditing

• Motions: No questions or motions were made regarding Auditing.

I. Grants Development

• Grant Writer Vacancy:
  • Councilor Scott asked about the vacancy in the grant writer position and its hiring status.
  • A representative from Grants Development (Makin Kelly) clarified that the position has a 9/1 start date, not 7/1, and has been impacted by the hiring freeze but has been posted with candidates in the pipeline.
• Motions: No motions were made regarding Grants Development.

J. Assessing

• In-State Travel:
  • Councilor Burnley noted that in-state travel in FY25 was approximately three times the allocated amount and asked for an explanation.
  • Chief Assessor Golden explained that the increase was due to the need for two assessors to obtain accreditation, requiring travel for in-person education in Southbridge and Plymouth. He anticipated the line item would decrease as staff become accredited.
• Printing and Stationery:
  • Councilor Burnley asked about a $7,000 increase in printing and stationery.
  • Chief Assessor Golden explained that the increase is due to numerous mailings throughout the year, including residential exemption notices and the annual finance newsletter, which was transferred from the Treasury Department to streamline efficiency.
• Motions: No motions were made regarding Assessing.

K. Treasury

• Printing and Stationery Transfer:
  • Councilor Clingan acknowledged the $6,500 transfer for printing and stationery from Treasury to Assessing, confirming the earlier discussion.
• Motions: No motions were made regarding Treasury.

L. Building Insurance

• Motions: No questions or motions were made regarding Building Insurance.

M. Procurement and Contracting Services (PCS)

• Disparity Study Recommendations:
  • Councilor Burnley asked how the recommendations from the disparity study would impact the department's workload in FY26.
  • Chief Procurement Officer Angela Allen stated that the department is actively evaluating recommendations to determine what can be done with existing resources and what may require more. She emphasized the importance of filling the recently vacated Deputy CPO position for data reform. She also mentioned meetings with Boston and Cambridge procurement offices to learn about implementation strategies.
• Motions: No motions were made regarding Procurement and Contracting Services.

N. Human Resources (HR)

• Special Items Budget:
  • Councilor Mbah inquired about a $500,000 "special item" in the HR budget.
  • Deputy Director Ellen Collins explained that the special items budget includes union-related educational programs, fluency bonuses, and the MBTA PASS program, which provides MBTA cards for benefit-eligible city employees.
• Benefit Expenditures:
  • Councilor Mbah asked about substantial increases in major benefit expenditures, specifically a 10% increase in health and Medicare costs and an 8% increase in pension contributions.
  • Director Ann Gill attributed the increase to the astronomical cost of medical insurance nationwide and the hiring of new employees.
• Motions: No motions were made regarding Human Resources.

O. Health and Life Insurance and Medicare

• Motions: No questions or motions were made regarding Health and Life Insurance and Medicare.

P. Workers' Comp

• Motions: No questions or motions were made regarding Workers' Comp.

Q. Information Technology (IT)

• Motions: No questions or motions were made regarding Information Technology.

R. Parks and Recreation

• Budget Changes and Account Lines:
  • Councilor Mbah noted minimal change in the overall Parks and Recreation budget despite hopes for significant improvements in recreation programs and website.
  • Director Sue Yerkes explained that a deeper look into each account line resulted in increases to individual lines (e.g., professional services, technology, recreation supplies) to make them more accurate, even if the overall budget increase was modest (around 3%).
• Revenue Projections and Enterprise Funds:
  • Councilor Mbah asked about projections for revenues and costs for facilities like Dillboy and Foss Park.
  • Director Yerkes stated that the department prioritizes providing services over being a "moneymaker" and is partnering with the finance team to review the revenue structure for enterprise funds.
• Capital Projects and Future Operating Costs:
  • Councilor Mbah inquired about the department's ability to carry forward capital projects listed in the Capital Improvement Plan (CIP) and the impact on future operating costs.
  • Budget Director Mike Mastroboni explained that the city's capital planning is at a "turning point" due to starkly different revenue projections. He stated that the next CIP would be "less ambitious and more realistic," focusing on maintaining core services and existing assets rather than expanding them, similar to the general fund budget.
• Dillboy Field Fees (Enterprise Fund):
  • Chair Wilson followed up on Dillboy field permit fees, noting actual revenues of $106,000 as of June 12th, with an additional $40,000 expected. He asked if the opening of Rivas Field had led to a decrease in permitted hours at Dillboy.
  • Director Yerkes and Director of Operations Yanni Taragades explained that there was a transition period where both Revis and Dillboy were permitted equally. While Revis opened, many groups, including the high school and youth soccer, maintained similar usage hours at Dillboy.
• Jenny Smithers Pool Retained Earnings (Enterprise Fund):
  • Chair Wilson asked about the use of retained earnings for Jenny Smithers Pool and its implications for future general fund subsidies.
  • Budget Director Mike Mastroboni stated that the $373,000 in retained earnings was used to avoid reducing the general fund budget. He acknowledged that an increase in the general fund subsidy would likely be needed next year unless program revenue significantly increases.
• Motions: No motions were made regarding Parks and Recreation or its Enterprise Funds.

S. Arts Council

• Armory Operations:
  • Councilor Mbah inquired about the funding for the Arts Council's increased responsibility with the Art of the Armory, noting a lack of specific line items in the budget.
  • Director Gregory Jenkins explained that the city is developing a fee structure for leasable spaces in the Armory to provide sustainability. He noted that multiple departments (DPW, Arts Council, OSPCD) are already supporting the Armory, creating an "economy of scale." There is no additional "01" request for FY26.
• Motions: No motions were made regarding the Arts Council.

IV. Non-Departmental Items

• Debt Service:
  • Councilor Mbah questioned the relatively small amount budgeted for debt service ($22.6 million) given the city's capital projects.
  • Budget Director Mike Mastroboni explained that the debt service target is 8% or lower of general fund revenue. He listed projects borrowed in May and highlighted the city's strategy to manage debt service, including a $4.7 million appropriation from stabilization funds (pre-cash) to reduce borrowing, saving $400,000 in debt service next year and $9.6 million over 20 years. He also noted that projects from the past are continually being paid off, and new borrowing is added. He confirmed that the city will be slowing down the pace of capital projects due to revenue and economic uncertainty, rising interest rates, and contractor availability.
• Motions: No questions or motions were made regarding non-departmental items (salary contingency, revolving funds, PAYGO, debt service, unemployment compensation, pension, and state assessments).

V. Adjournment

• Chair Wilson asked if any departments needed to be called back for additional questions on Monday night. No counselors indicated a need.
• Budget Director Mike Mastroboni encouraged counselors to email IGA with any questions for "cut night" to ensure productive discussions.
• Councilor Mbah moved to adjourn the meeting.
• Roll Call on Adjournment:
  • Councilor Mbah: Yes
  • Councilor Burnley: Aye
  • Councilor Clingan: Yes
  • Councilor Scott: Yes
  • Chair Wilson: Yes
• The meeting was adjourned at 7:52 p.m.