Council Meets with Mayor to Discuss Budget

City Faces $4 Million Deficit for FY2010

– Allison Goldsberry

Mayor Michael McGlynn spent nearly two hours on Saturday morning briefing the City Council on next year’s budget. The story of the budget, according to the mayor, is very complicated, as there is a $4 million deficit, restrictive federal stimulus money, and potentially more state aid cuts that could alter the budget planning at any moment.

There are twenty-four more days left in fiscal year 2009 and still plenty of unanswered questions and missing information from the state. According to Mayor McGlynn, the state could cut Medford’s local aid even more at anytime, even after the budget has been completed. In addition, the city is still awaiting word on approval of its early retirement incentive plan and the much-discussed Municipal Partnership Act, which would allow communities to impose hotel and meals taxes to help raise additional revenue.

The $4 million deficit is from a number of sources, including unemployment insurance, Medicare, workers’ compensation, veterans’ aid, and snow and ice removal. The city is nearly $1 million “in the hole” for its snow and ice removal due to frequent storms that favored weekends and holidays. Mayor McGlynn called it one of the worst winters in twenty-two years for snow removal costs. He has asked the state to allow spreading the deficit out over three or five years. In past years Medford has been able to “eat up” the snow removal deficit but this year is not able to do it because the city was already forced to cut $1.4 million earlier in the year for fiscal year 2009.

Mayor McGlynn praised the city and school unions for forgoing contractual pay raises next year. All but one union have frozen salaries, saving the city $2 million.

“That’s the least we should to to be sure we’re protecting other people’s jobs and services to the community,” said McGlynn.

The mayor is also asking city and school employees to pay more of their health insurance costs. Currently, employees pay 19% while the city picks up 81% of the tab. Co-pays are only $5, $10, and $25. The mayor is interested in a 75/25 split and raising co-pays to $10, $15, and $25.

“We should be paying more for our health care,” said the mayor.

According to McGlynn, for every additional 1% picked up by employees, the city saves $180,000.

Medford is also saving money through consolidations and retirements. For example, Board of Health Director Karen Rose will assume the responsibilities of Elder Services Director Jessica Flaherty, who is retiring this year, while Jack Buckley will leave his school department operations job to head up the Department of Public Works.

With DPW Head Paul Gere leaving and stepping into a part-time position with the city paid by federal funds, Deputy DPW Chief Brian Kerins leaving without a replacement, and Buckley leaving the schools to assume control of the DPW, the city is saving $200,000, according to McGlynn.

Regarding federal stimulus cash, Mayor McGlynn expressed his dismay with the money’s restrictions, calling the rules and regulations associated with the stimulus funds “ridiculous.” For example, the money can be used to repair fire stations, but not police stations, and can be used to hire more police, but not more firemen, according to McGlynn. Additionally, the city can’t use federal stimulus money to repair the high school pool or to install turf fields at the high school and Hormel Stadium, as the mayor had hoped.

However, Medford is receiving $504,000 in federal funds for energy improvements. McGlynn said the city is the first in New England to join the Enivormental Protection Agency’s municipal challenge to reduce Medford’s carbon footprint. The city is partnering with National Grid to make energy improvements at all of the schools and the company could potentially cover 70% of improvement costs.

Medford is also receiving $750,000 to address homelessness. McGlynn said the money unfortunately can’t be used to build housing. Community Development Director Lauren DiLorenzo is working on the grant application.

Each of Medford’s City Council members attend the Saturday morning budget meeting, along with City Treasurer Fred Pompeo, City Auditor Ann Baker, and mayoral aide Richard Lee.

At City Councilor Paul Camuso’s suggestion, the Council agreed to forgo their scheduled pay raise on July 1. Though the raise is small, Councilor Camuso called it a “symbolic gesture” demonstrating the Council is willing to freeze its own salary along with other city employees. Councilors receive $25,000 yearly in salary and expenses.

More…

School Superintendent Provides Context for Budget