Watertown City Council Meeting Minutes
Governing Body: Watertown City Council Meeting Type: Regular Meeting (In-person with remote access) Meeting Date: October 14, 2025, at 12:00 AM Attendees: Councilors Caroline Bays, Lisa J. Feltner, John G. Gannon, Nicole Gardner, Emily Izzo, Anthony Palomba, Vincent J. Piccirilli, Council President Mark S. Sideris. (Councilor John Airasian was present via Zoom for the Committee on Education and School System Matters report).
Executive Summary
The Watertown City Council convened on October 14, 2025, addressing several key municipal matters. The Council approved minutes from previous meetings and adopted a resolution establishing the Fiscal Year 2027 budget process timeline. Proclamations were issued, honoring three Watertown High School students for assisting the Police Department and recognizing the contributions of two individuals to the Watertown Cable Access Board of Directors. A significant portion of the meeting was dedicated to public hearings and votes on a proposed amendment to the FY2026 budget, allocating $2,072,798 for the Watertown Square Area Plan, and a loan order of $1,350,000 for Bemis Park construction. The City Manager presented a comprehensive preliminary budget overview for Fiscal Year 2027, highlighting financial headwinds, the critical importance of the commercial-residential tax split home rule petition, and outlining various scenarios for the proposed middle school project, emphasizing the need for Council guidance on these challenging decisions.
Official Meeting Agenda
1. Call to Order and Roll Call
- The meeting was called to order.
- Roll Call:
- Bays: Present
- Feltner: Present
- Gannon: Present
- Gardner: Present
- Izzo: Present
- Palomba: Present
- Piccirilli: Present
- Sideris: Present
- Pledge of Allegiance was recited.
2. Public Forum
- No members of the public wished to speak.
- Public forum was closed.
3. Examination of Minutes
- Motion: To approve the minutes of the Special City Council meeting on September 2nd.
- Moved: Councilor
- Seconded: Councilor
- Vote: All in favor (Aye). Motion passed.
- Motion: To accept the minutes from the City Council meeting of September 23rd.
- Moved: Councilor
- Seconded: Councilor
- Vote: All in favor (Aye). Motion passed.
4. President's Report
- Proposed Resolution for Fiscal Year 2027 Budget Process:
- Council President Sideris read a resolution establishing a timeline for the development of the Fiscal Year 2027 Operating Budget and Capital Improvement Program, consistent with Article 5 of the Watertown Home Rule Charter.
- Key Timeline Dates:
- FY2027 Preliminary Budget Overview presented to City Council by October 14, 2025.
- City Council to adopt FY2027 Budget Policy Guidelines by November 25, 2025.
- Proposed FY2027-31 Capital Improvement Program presented to City Council by January 20, 2026.
- City Council to adopt conceptual recommendations on FY2027-31 Capital Improvement Program by February 24, 2026.
- Motion: To accept the proclamation.
- Moved: Councilor
- Seconded: Councilor
- Vote: All in favor (Aye). Motion passed.
- Councilor Piccirilli provided an update on the Budget and Fiscal Oversight Committee, stating that meetings would be scheduled to create the FY2027 budget policy guidelines and requested input from all Councilors.
5. Acceptance of Proclamations
- Proclamation Honoring Riaz Khan, Joel Montoya, and Baran Akisic:
- Council President Sideris read a proclamation recognizing three Watertown High School football players for their courageous actions on September 25, 2025, in assisting the Watertown Police Department with a vehicular hit-and-run incident at Palfrey Street and Pearl Street. Their timely and accurate information, corroboration, and detailed descriptions led to the identification and location of the involved vehicle.
- The Chief of Police thanked the Council and the young men for their outstanding civic responsibility.
- Motion: To accept the proclamation.
- Moved: Councilor
- Seconded: Councilor
- Vote: All in favor (Aye). Motion passed.
7. Public Hearings and Votes
7A. Public Hearing and Vote on a Proposed Amendment to the Fiscal Year 2026 Budget
- City Manager's Report: The City Manager explained that this amendment moves funds from the Watertown Square Stabilization Fund to the Watertown Square expenditure account to cover costs for the Watertown Square Area Plan. This includes funding for the second phase of work by Innis Land Strategies on the urban revitalization plan, legal services, and Bowman Engineering for major engineering design services.
- Total Requested Amount: $2,072,798.
- Public Comment:
- Angie Kanellis: Expressed hope that previous plans for a garage in the CVS parking lot would be reviewed by engineering firms to avoid duplication of effort, noting that infrastructure has not changed.
- Motion: To adopt the proposed amendment to the Fiscal Year 2026 budget.
- Moved: Councilor
- Seconded: Councilor
- Roll Call Vote:
- Feltner: Yes
- Gannon: Yes
- Gardner: Yes
- Izzo: Yes
- Palomba: Yes
- Piccirilli: Yes
- Sideris: Yes
- Bays: Yes
- Vote: 8-0. Motion passed.
7B. Public Hearing and Vote on a Proposed Loan Order for Bemis Park
- City Manager's Report: The City Manager presented a loan order for $1,350,000 to cover construction and construction administration costs for Bemis Park. The original FY2025 CIP allocated $960,000, but costs increased due to stormwater mitigation and inflation. The additional cost is proposed to be absorbed due to Victory Field 2 coming in nearly $2 million under budget.
- Project Details:
- Belco Landscaping had the low bid.
- Includes Alternate One and Two: a shade structure and a portable restroom enclosure.
- Construction bid (including alternates): $1,227,145.
- 10% contingency.
- Construction Administration covered by existing CBA Landscape Architecture contract.
- Total project cost: $1,349,850.
- Public Comment: No members of the public wished to speak.
- Motion: To approve the loan order for Bemis Park as presented.
- Moved: Councilor
- Seconded: Councilor
- Roll Call Vote:
- Gannon: Yes
- Gardner: Yes
- Izzo: Yes
- Palomba: Yes
- Piccirilli: Yes
- Sideris: Yes
- Bays: Yes
- Feltner: Yes
- Vote: 8-0. Motion passed.
8. Committee Reports
8A. Committee on Education and School System Matters Report (Meeting on September 10th)
- Councilor Izzo (Chair): The committee met on September 10th at 5:30 PM to interview candidates for reappointment to the Watertown Cable Access Board of Directors.
- Attendees: Councilor Emily Izzo (Chair), Councilor John Airasian (Secretary, via Zoom).
- Candidate 1: Samantha Henry
- Expressed enjoyment of her time on the board and impressed by staff's handling of challenges.
- Brings a working journalist's perspective, aligning with WCAC's mission.
- Feels the board and staff are strong in strategic thinking and well-positioned for Comcast contract negotiations.
- Motion (by Councilor Airasian): To recommend City Council approve the reappointment of Samantha Henry to the Watertown Cable Access Board of Directors for a term expiring September 15, 2028.
- Seconded: Councilor Izzo
- Vote: 2-0. Motion passed.
- Candidate 2: James Verschbow
- Brings a unique perspective as a WCAC volunteer.
- Noted significant work leading up to Comcast negotiations and hopes for a fair deal.
- Believes more promotion of the station is needed.
- Motion (by Councilor Airasian): To recommend City Council approve the reappointment of James Verschbow to the Watertown Cable Access Board of Directors for a term expiring September 15, 2028.
- Seconded: Councilor Izzo
- Vote: 2-0. Motion passed.
- Motion: To accept the report.
- Moved: Councilor
- Seconded: Councilor
- Vote: All in favor (Aye). Motion passed.
- Motion: To confirm the reappointment of Samantha Henry and James Verschbow to the Watertown Cable Access Board of Directors for terms to expire on September 15, 2028.
- Moved: Councilor
- Seconded: Councilor
- Vote: All in favor (Aye). Motion passed.
8B. Committee on Economic Development and Planning Report (Meeting on October 7th)
- Councilor Feltner (Chair): The committee met on October 7, 2025, at 5:30 PM for a Community Preservation Committee (CPC) confirmation interview.
- Attendees: Councilor Lisa Feltner (Chair), Councilor John Gannon (Vice Chair), Councilor Vincent Piccirilli (Secretary).
- Interviewee: Allison Eck
- Holds dual degrees in physics and comparative literature, currently Executive Communications Manager for Harvard Medical School.
- Lived in Watertown for 13 years, involved in community groups (Watertown Community Conversations, Live Well Watertown, Immigrant Mutual Aid Network).
- Has leadership experience as former President of the Cambridge Symphony Orchestra board for five years and as a trained facilitator for Watertown Community Conversations.
- Expressed interest in prioritizing outreach to the Watertown community to raise awareness of available funding and encourage project applications.
- Action Item: Confirmation of appointment to February 1, 2027.
- Vote: 3-0 in approval.
- Motion: To accept the report.
- Moved: Councilor
- Seconded: Councilor
- Vote: All in favor (Aye). Motion passed.
- Motion: To confirm the appointment of Allison Eck to the Community Preservation Committee as an at-large member for a term to expire February 1, 2027.
- Moved: Councilor
- Seconded: Councilor
- Vote: All in favor (Aye). Motion passed.
9. Communications from the City Manager
9A. Request for Confirmation of Appointment to the Solid Waste and Recycling Advisory Committee
- City Manager: Recommended Alana Berman-Gnevke for a term to expire May 15, 2028. The appointment was reviewed and recommended by the Residence Advisory Committee.
- Referral: To the Committee on Public Works.
9B. Request for Confirmation of Appointment and Reappointments to the Public Arts and Culture Committee
- City Manager: Recommended the appointment of Lei Ma for a term expiring November 15, 2027, and the reappointment of Matt Hanna and Don Scaltretto for terms expiring November 15, 2028. All were reviewed and recommended by the Residence Advisory Committee.
- Referral: To the Committee on Economic Development and Planning.
9C. Request for Confirmation of Appointment and Reappointments to the Historic District Commission
- City Manager: Recommended the appointment of Brendan Shanahan for a term expiring November 15, 2026, and the reappointment of Harvey Steiner and Linda Sternberg for terms expiring November 15, 2028. These appointments follow the process for the Historic District Commission, including recommendations from the Historical Society and the Residence Advisory Committee.
- Referral: To the Committee on Economic Development and Planning.
10. Preliminary Budget Overview for Fiscal Year 2027
- City Manager's Presentation:
- Access to Presentation: watertown-ma.gov/FY27
- Guiding Principles: Grounded in the Home Rule Charter preamble: Safety and tranquility, learning and excellence, equity and diversity, health and well-being, creativity and innovation, accountability and transparency.
- Strategic Priorities & Leadership Formula: Evolving into a goal-setting system for budget development.
- Six Goals for Budgeting:
- Effective Operations: Ethical, efficient, creative organization delivering timely, high-quality services; modernizing systems, fostering collaboration.
- Fiscal Stability: Professional and responsible financial management; sound policies and practices; effective use of taxpayer dollars; resilience to economic uncertainty.
- Community Engagement and Customer Service: Proactive communication, responsive customer service; informing, educating, empowering constituents; ensuring all voices are heard.
- Public Health and Safety: Enhancing health, well-being, and safety; providing programs, resources, professional emergency response.
- Commitment to the Future: Responsible and timely investments for a resilient and beautiful future; climate and energy policies, thoughtful community design, flourishing businesses, state-of-the-art schools.
- Watertown for All: Fostering a welcoming, inclusive, accessible environment; investing in cultural assets, diverse programming.
- Budget Development Principles: Preserve financial condition, provide high-level services efficiently, fund annual operations from current revenues, avoid deferring maintenance, achieve long-term financial management, sound business practices.
- FY2024 Budget Policy Guidelines (Top Priorities):
- Cost Savings & Revenues: Diversified and growing tax base (small business, emerging industries), implementing Watertown Square Area Plan to increase tax base.
- Program Enhancement & Expenditure: Climate and energy plan, implementing comprehensive plan and Watertown Square Plan, sustainable school funding, budget plan for unfunded capital items (Senior Center, East End Fire Station, DPW Staging, Watertown Square, Middle School), high school project completion, Health and Human Services Assessment recommendations, funding for streets, sidewalks, water, stormwater, underground utilities.
- Financial Headwinds:
- Biotech industry growth slowing, not leading to new construction.
- Federal grants (indirect impact on state aid).
- Tariff and inflation costs on new development.
- Increases in municipal operating costs, general inflation, department expenses, insurance costs.
- Critical Risk: Commercial-residential tax split home rule petition for FY2027.
- Mass Municipal Association report: "A Perfect Storm: Cities and Towns Face Historic Fiscal Pressures."
- Watertown is in better shape due to new growth, conservative financial strategies, and stabilization funds.
- Fiscal Year 2025 Closeout:
- Revenue: Closed $10.1 million higher than predicted, primarily due to investment income (high interest rates on funds for high school project).
- Expenditures: Spent approximately $2 million less than budgeted (compared to $9.3 million less in FY2024), indicating departments are fully staffed and operational.
- Debt (as of June 30, 2025):
- Permanent Debt Balance: $282,455,000.
- Authorized Debt (not yet issued): $302,000,000.
- Outstanding Debt as % of Full and Fair Cash Value: 2.45% (46th in state, below 5% expectation).
- Debt per Capita: $7,773 (13th in state, FY2024 data; projected $8,036 by FY2026).
- Debt Service as % of Budget: 11.52% (6th in state, FY2024 data; projected 15.5% by FY2026).
- Enterprise Funds: Water and SOAR Enterprises ended the year with expenditures close to budget and revenues slightly higher, contributing to retained earnings for capital projects.
- Fund Balances:
- Overlay Accounts: $2.6 million (for tax abatements).
- Special Revenue Accounts: Most funds in top 14 accounts (Circuit Breaker, School Extended Day, ARPA, Parking Meter Fund, School Lunch, etc.).
- Community Preservation Act (CPA): $23 million balance, with $3.7 million expected in 2026. Funds used for Willow Park and Walker Pond design.
- Capital Accounts: Watertown High School ($21 million), Elementary Schools ($3.3 million, remainder for middle school), Public Building Streets and Sidewalks, ARPA.
- Stabilization and Trust Funds: OPEB (largest, aiming for full funding by 2031), Middle School Stabilization ($15.2 million), High School Stabilization, Watertown Square Stabilization ($8.2 million).
- Fiscal Year 2026 Update:
- Economic Indicators: Average total employment up, unemployment rate up slightly (FY2024). Residential sales data (through FY2023) shows decline, but median sale prices increasing (through FY2024).
- Construction Permits: Spike in FY2025, but permit fee revenue dropped from FY2024 (more renovations, fewer lab buildings).
- New Growth: Residential growth slightly higher in FY2025, commercial growth declining substantially from FY2022-2024.
- Property Valuation: Total valuation increasing, but at a slower rate. Residential-commercial split settled at 72% residential, 28% commercial.
- Progress on Six Goals:
- Effective Operations: Filling vacancies quickly, improving hiring, administration code draft submitted, increased inter-departmental collaboration.
- Fiscal Stability: Fully funding pension plan, OPEB on track for full funding by 2031, AAA bond rating maintained.
- Community Engagement & Customer Service: 311 call volume growing, new DPW position for construction communication, expanded community engagement.
- Public Health & Safety: Human Services Department established, increased Health Department programs, second in-house ALS ambulance, body-worn camera program for WPD.
- Commitment to the Future:
- Parker Building: Construction underway for new meeting space, food pantry (opening early 2026), and consolidated CDP staff offices (early 2026). Human Services to move to Parker Building.
- Watertown High School: On budget ($220,338,049), meeting sustainability goals, stabilization funds ensuring full funding, opening calendar year 2026.
- Parks: Arsenal Phase B completed, Lowell Playground and Upper Saltonstall near completion (7 parks completed since 2022). Victory Phase 2 under construction. Bemis Park next. Community meetings for Walker Pond underway.
- Watertown for All: ADA self-evaluation transition plan completed, promoting festivals (Fair on the Square, Arts Market each yielded over 3,500 visitors), commitment to inclusivity.
- Fiscal Year 2026 Budget Amendment (Second Amendment):
- Real Estate & Property Taxes: Increase of $1,030,620 (additional new growth, primarily from utility company upgrades).
- Opioid Settlement Fund: $285,456 moved from free cash (due to state-level fund creation issues) to the separate Opioid Settlement Fund.
- Veterans Office Salary: Moved to Human Services Department (housekeeping item).
- Second Ambulance: Fully funding the second ambulance, utilizing new civil service law changes to expedite staffing.
- Education: Increase of $211,875 from state Chapter 70 funds.
- Unreserved Fund Balance (Free Cash) at end of FY2025:
- Anticipated certified free cash: $33 million (down from $43.6 million last year due to Sterritt Lumber site purchase and middle school stabilization funding).
- Goal: Maintain 8-15% of annual budget in financial reserves (general stabilization + free cash). Anticipated 15% this year.
- Importance of 15% reserve due to tax split home rule uncertainty.
- Fiscal Year 2027 and Beyond (Preliminary Outlook):
- Revenue Forecast:
- Real estate and personal property taxes: 2.5% annual increase + new growth ($2,250,000 in FY2027, low point).
- State aid: Level funded (potential for drop).
- Local receipts: Inspection fees, investment income ($2.7 million), motor vehicle excise, meals tax, etc.
- Other financing sources: Typical transfers, $2 million utilization of free cash, $250,000 annually for Special Ed Stabilization Fund, ESCO Capital Project Stabilization Fund transfers.
- Total FY2027 revenue: 3.1% increase over FY2026 (after accounting for one-time transfers in FY2026).
- Property Taxes and Home Rule Petition:
- FY2025-26 total budget expenditures up 4.2%. New growth must cover difference.
- Average exempted residential tax bill likely up 6.2% in FY2026 (due to residential values rising faster than commercial, shifting burden).
- FY2027 Projection (with home rule passing): Average exempted residential tax bill up 4.2% (approx. $7,600).
- FY2027 Projection (without home rule, taxing fully to cap): Average exempted residential tax bill up 18.4% (approx. $1,300 increase, total $8,656). Commercial side would decrease.
- Impact of Tax Split Home Rule: Crucial for maintaining current tax structure and avoiding significant residential tax increases.
- Expenditure Forecast (FY2027 Goals):
- Effective Operations: Modernizing HR systems, completing City Hall renovations, internal policy development.
- Fiscal Stability: Full pension funding, OPEB fully funded by 2031, encouraging new growth (especially Watertown Square).
- Community Engagement: New ways to access 311, improved construction communication, engaging underrepresented populations. (Note: Tight budget for new staff).
- Public Health & Safety: Collaboration for housing/food insecurity, substance use programming (opioid settlement funds), finalizing second ambulance, modernizing CAD system.
- Commitment to the Future:
- Climate Plan: Electric vehicle fleet, encouraging private investment in solar/heat pumps, vehicle reduction strategies.
- Comprehensive Plan: Citywide zoning, economic development (small businesses, corridors), historic preservation plan, complete streets policies.
- Watertown Square: Implementing demonstration project, continuing revitalization plan, high-quality design, developing funding strategy.
- Parks: Construction at Howe and Sullivan, design for Victory Phase III, Victory Tot Lot, Saltonstall Tot Lot, Walker Pond moving to construction.
- Watertown for All: ADA self-evaluation and transition plan implementation, promoting cultural assets, empowering diverse programs.
- Baseline Expenditure Forecast:
- General government: 2.5% increase (historically higher, averaging 6.5%).
- Education: 3.5% increase (potential for program cuts at this rate).
- Snow and ice: Flat.
- Waste disposal: 5% increase.
- State assessments: 2.5% increase.
- Health insurance: 7.5% (early feedback suggests double-digit).
- Debt figures: Based on current and projected future debt, including $70 million for middle school. Borrowing rates projected at 4.5%.
- OPEB + Pension + School Debt + Stabilization (Middle School & Senior Center): Flat at $34.5 million.
- Preliminary Deficits: $3.6 million in FY2027, $3 million in FY2028, $4.6 million in FY2029.
- Revenue Forecast:
- Middle School Project Discussion:
- Previous Discussion: Last year, five items prioritized: Senior Center, East End Fire Station, DPW Staging Area, Watertown Square Plan, Middle School.
- Outcome: Middle School funded at $70 million borrowing + stabilization (now $17.2 million). Watertown Square unfunded (reliance on stabilization/new growth). Senior Center at $25 million (FY2030, unfunded, aggressive stabilization). DPW Staging unfunded (using Starrett Lumber). East End Fire Station pushed beyond 2031.
- Middle School Cost Estimates:
- Original options (tear down/rebuild, renovation) ranged from $76 million to $132 million.
- School Building Committee assigned to figure out an $84.8 million option (replace 1922 building, upgrade remaining).
- Current Situation: AI3 preliminary cost estimate for two preferred options exceeded $120 million (June 2025).
- Reduced cost option (August 2025): Construction Manager at Risk version of new build at $112 million.
- Project Gap: Original budget $84.7 million (stabilization $14.7M + elementary school funds $2M + borrowing $70M). With additional $2.5M from elementary schools, total available $87.2M.
- Gap for $112M project: $25.8 million (plus costs for delays, MSBA reimbursement for demolished building).
- Risks of Middle School Project:
- Impacts options and flexibility in the budget.
- Requires significant adjustments to stabilization funds.
- Delays OPEB payoff.
- Impacts open space and affordable housing contributions.
- Scenario Analysis (Four Boxes):
- Home Rule Passes, No Middle School: Maintains flexibility and options. (Still requires reducing Senior Center stabilization by $3.3M/year to balance existing deficit).
- Home Rule Passes, Middle School Project: Uses much of flexibility, reduces future options. (Path exists by reducing OPEB, Senior Center stabilization, Open Space, Affordable Housing, Council Reserve).
- Home Rule Fails, No Middle School, Tax Relief ($10M below cap): Uses much flexibility, maintains some options for tax numbers. (Requires reducing OPEB, Senior Center, Watertown Square, Land Acquisition, Affordable Housing, Council Reserve, still with $1.8M deficit in FY2028 and $7.6M operational deficit in FY2029).
- Home Rule Fails, Middle School Project, Tax Relief ($10M below cap): Substantial program cuts, not feasible. More realistic outcome is an 18% tax increase.
- Call for Council Guidance:
- Binary Question: Pursue middle school project (restart design for $112M project, use modulars, construction manager at risk, borrow $98M+) OR Hold on middle school project.
- If holding, four options:
- Hold stabilization funds (do nothing, release modulars, rebuild Moxley Field, seek future MSBA funding).
- Summer updates (maintain current school longer, use $17M for substantial improvements, release modulars, restore Moxley Field).
- Pack updates into one year (use modulars for one year, intense improvements, no future swing space).
- Buy land for new middle school (releases modulars, restores Moxley Field, maintains current school, allows slow MSBA process).
- Council President Sideris announced a special meeting at 6:00 PM before the next Council meeting to discuss prioritization and provide guidance to the City Manager.
11. Requests for Information
- No requests for information.
12. Announcements
- No announcements.
13. Public Forum
- No members of the public wished to speak.
- Public forum was closed.
14. Adjournment
- Motion: To adjourn.
- Moved: Councilor
- Seconded: Councilor
- Vote: All in favor (Aye). Motion passed.
- The meeting was adjourned.