Committee Report - Finance - 6-10-15 — File 199507

Finance Committee Page 1 of 2 Printed 6/24/2015 June 10, 2015 REPORT OF THE FINANCE COMMITTEE Attendee Name Title Status Arrived Tony Lafuente Chair Present Maryann M. Heuston Vice Chair Present Katjana Ballantyne Ward Seven Alderman Present John M. Connolly Alderman At Large Present William A. White Jr. Alderman At Large Present Matthew McLaughlin Ward One Alderman Present Robert J. McWatters Ward Three Alderman Present Mark Niedergang Ward Five Alderman Present Rebekah L. Gewirtz Ward Six Alderman Absent Dennis M. Sullivan Alderman At Large Present Mary Jo Rossetti Alderman at Large Present 1. FY-16 Departmental Budget review Finance & Auditing: Mr. Bean reported that the city’s bond rating remains high, which allows the city to borrow at lower rates. During FY-15, $10.6 million of free cash was achieved. The water/sewer stabilization funds have $7.6 million. The city’s capital investment plan has been expanded and a long term water rate study is on the horizon. Mr. Bean said that the requested funds for the GLX Valuation Project would help the city to do long range planning. Alderman White spoke about the rising tax burden on residential property owners, noting that it has risen from 68% in FY-02 to 74% today. He cautioned that if the city keeps going to the Prop 2.5 maximum, most working class people will be priced out of Somerville. Treasury: Mr. Forcellese reported the amounts owed the city in back taxes, excise and personal property taxes and explained how the city attempts to recover those funds. Currently, the city is owed $1.8 million in back taxes. The city has paid $2,723,570 in interest. Alderman White asked what the rate of debt service would be when the debt is is rolled over to permanent financing. Mr. Forcellese reported that building insurance premiums have been reduced by 4.8%, noting that the Brown School claim has not been figured in yet.

Finance Committee Page 2 of 2 Printed 6/24/2015 Assessing: Mr. Levye explained that shifting of a larger share of the tax burden to commercial property is going to take some time. Alderman White requested a copy of the RFP for the GLX Valuation Project. Purchasing: Angela Allen presented her department’s budget request. Grants: Kate Hartke reported that the city has received $4.2 million in grant funding and has become a victim of its own success. Becoming a waterfront community has made it more difficult to obtain grants. The current success rate is 75-80% Law: - Frank Wright presented his department’s budget request. Personnel: Bill Roche presented his department’s budget request.