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Report of the Committee on Financemeeting as a Committee of the Whole
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REPORT OF THE COMMITTEE ON FINANCEMEETING AS A COMMITTEE OF THE WHOLEThe Committee on Finance convened on May 12, 2010, as a Committee of the Whole with Chairman Maryann Heuston presiding and Committee Members Aldermen Bruce Desmond, Rebekah Gewirtz, Sean O?Donovan, Walter Pero, John Connolly, Robert Trane and William White also present and voting. Also present were Mayor Joseph Curtatone, Chief of Staff Janice Delory, Administrative Assistant Matt Dias, Personnel Director Jessie Baker, Finance Director Ed Bean, Deputy Director of Communications Jaclyn Rossetti, Rita Van Steensburg, Executive Director of OSPCD Monica Lamboy, Housing Director Phil Ercolini, Superintendent of Inspectional Services Ed Nuzzo, and School Committee members Mary Jo Rossetti, Maureen Bastardi, M. Teresa Cardoso, Adam Sweeting, Paul Bockelman, Mark Niedergang and Christine T. Rafal.City's Financial Outlook and preliminary FY-11 budget forecast:Mayor Curtatone addressed the members regarding the city?s FY-11 budget and said that once again, local aid to Somerville will be cut. It is anticipated that the net reduction in local aid will be $2.4 million, which is over $15 million less than in 2002. The total FY-11 deficit is $8.1 million and healthcare costs are responsible for a good portion of this deficit. In addition to this, the city?s healthcare costs continue to increase and have actually tripled in the last ten years to the point where healthcare costs are now equal to our entire state aid allocation. The city is going to have to find ways to resolve these fiscal challenges because its current financial structure is unsustainable. Many forces contributed to this economic downturn, including the nation-wide economic recession, inflation of fixed costs, contractual employee increases, an increase in debt service costs, a decline in local revenue streams, increased pension costs and a reduction in Medicare reimbursements. Somerville needs to maintain its guiding principles of:? Fiscal responsibility by avoiding short-term savings at the expense of long-term prosperity,? Upholding core commitments and values by ensuring the safety and education of our residents and? Shared sacrifice so that no group will bear a disproportionate burden.The realities are this: there will be no relief from Beacon Hill, salary increases cannot be negotiated because there is no money to do so, personnel cuts must be made and some fees will be increased.Looking ahead to FY-12, there is the potential to save several million dollars annually by shifting the city?s healthcare to the GIC. City departments will be restructured to save tax dollars wherever possible, competitive sourcing services will be sought out and unused assets may be disposed of in order to close the projected FY-12 budget gap of $10 million or more.Alderman Pero mentioned the sacrifices made by the city?s retirees last year and he doesn?t want to see this group hurt again. Ms. Baker discussed the Personnel Department?s efforts with respect to dealing with retirees and told the members that retirees should realize a savings this year. Efforts will continue to bring the GIC into the city?s healthcare picture and Mayor Curtatone said that all new contracts would include a GIC provision. The mayor also said that he believes that pension reform will be passed and Mr. Bean discussed hoe that might impact the city.Mr. Sweeting discussed the School Committee?s budget scenarios and said that the public hearing on the School Department?s budget is scheduled for June 10th.189166 -Requesting approval to expend a $150,000 grant from the State for the Police Dept. to fund a feasibility study for a Regional Emergency Communications Center:Ms. Rossetti and Ms. Van Steensburg discussed the study and noted that this is a reimbursable grant.Chairman Heuston?s motion that no action be taken, based on this study, before the Board of Aldermen has an opportunity to review the results, was approved.189288 - Requesting approval of the One-Year Action Plan for HUD?s CDBG, HOME, and ESG programs, estimated at $4,192,339, with $712,816 in program income:Alderman White expressed concern about allegations of fraud within the Inspectional Services Department and said that a constituent has concerns about ADA compliance. There are several allegations by a single person, according to Ms. Lamboy. Alderman White requested a copy of the city?s response to the allegations and Alderman Gewirtz plans on discussing this matter in a Housing and Community Development Committee meeting.189289 - Requesting acceptance of a $749,893 HUD Healthy Homes Technical Study grant, to study the cardiovascular benefits of in-home air filtration in the Mystic Development:Mr. Ercolini discussed air pollution studies as they relate to tenants at the Mystic Housing facility and said that participants would receive a stipend. The study will be conducted in conjunction with tufts University.189291 - Requesting acceptance of a gift of unknown value (historic railroad artifacts) from KSS Realty Partners, for use in the Community Path project:No discussion189292 - Requesting approval to declare 4 vehicles in the Fire Dept. as surplus and available for disposition:No discussionThe committee discussed matters before it and took action on the following 5 items: 189166: Communication from Mayor - Requesting approval to expend a $150,000 grant from the State for the Police Dept. to fund a feasibility study for a Regional Emergency Communications Center. RECOMMENDATION: Should be approved with conditions (that no action be taken, based on this study, before the Board of Aldermen has an opportunity to review the results) VOTE: Unanimous, 8 - 0 in favor 189288: Communication from Mayor - Requesting approval of the One-Year Action Plan for HUD?s CDBG, HOME, and ESG programs, estimated at $4,192,339, with $712,816 in program income. RECOMMENDATION: Should be approved VOTE: Unanimous, 8 - 0 in favor 189289: Communication from Mayor - Requesting acceptance of a $749,893 HUD Healthy Homes Technical Study grant, to study the cardiovascular benefits of in-home air filtration in the Mystic Development. RECOMMENDATION: Should be approved VOTE: Unanimous, 8 - 0 in favor 189291: Communication from Mayor - Requesting acceptance of a gift of unknown value (historic railroad artifacts) from KSS Realty Partners, for use in the Community Path project. RECOMMENDATION: Should be approved VOTE: Unanimous, 8 - 0 in favor 189292: Communication from Mayor - Requesting approval to declare 4 vehicles in the Fire Dept. (1 1998 Ford Explorer and 3 1994 Crown Victorias) as surplus and available for disposition. RECOMMENDATION: Should be approved VOTE: Unanimous, 8 - 0 in favor