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Matters ▸ Attachment

2025.01.09 Q2 Spending Memo — File 25-0023

File 25-0023·2 pages·📄 Original PDF (city portal)·sha256 2b61cf03ec01…
‭City of Somerville, Massachusetts‬ ‭City Clerk’s Office‬ ‭K‬‭ATJANA‬‭B‬‭ALLANTYNE‬ ‭Mayor‬ ‭K‬‭IMBERLY‬‭M. W‬‭ELLS‬ ‭City Clerk‬ ‭DRAFT - for discussion only‬ ‭MEMORANDUM‬ ‭To:‬ ‭Honorable City Council Members‬ ‭From:‬ ‭Mohammed Uddin, City Council Financial Analyst‬ ‭Date:‬ ‬ ‭Re:‬ ‭City Council Analyst FY25 Q2 spending & projections‬ ‭Objective:‬‭Understand the FY25 appropriations, expenditures‬‭for FY25 Q2, projections for the remaining months of‬ ‭FY25 and methodology for projections. A link to the analysis can be found‬‭HERE‬ ‭In summary (Depts Only):‬ ‭Description‬ ‭FY25‬ ‭Appropriation‬ ‭FY25 Expenses‬ ‭(12.17.2024)‬ ‭FY25 Projected‬ ‭Remaining‬ ‭FY25 Surplus‬ ‭and/or Deficit‬ ‭Projected % Surplus‬ ‭and/or Deficit‬ ‭Personnel (51)‬ ‭$94,626,228‬ ‭$39,810,176‬ ‭$46,056,153‬ ‭$8,759,898‬ ‭6.94%‬ ‭Ordinary‬ ‭Maintenance (52)‬ ‭$48,001,514‬ ‭$15,927,843‬ ‭$18,378,281‬ ‭$13,695,390‬ ‭28.53%‬ ‭Total (51 + 52)‬ ‭$142,627,742‬ ‭$55,738,019‬ ‭$64,434,434‬ ‭$22,455,288‬ ‭12.72%‬ ‭Methodology:‬ ‭The appropriation and expenditure columns are based on Munis reporting. The projected remaining is taking the actual‬ ‭expensed weekly (24) average multiplied by the weeks remaining in the fiscal year (27) to project the remaining costs‬ ‭for the fiscal year. With a conservative reduction of 25% we get a conservative surplus projection of $18.6m.‬ ‭Limitations:‬ ‭A deeper level analysis would compare these numbers with a 3-5 year historical average at the same point in time (Q2).‬ ‭These projections do not account for any changes in activity or seasonal activity such as changes in hiring pattern,‬ ‭retirement buyouts, stipends, etc. and invoice processing by departments which is why I added 25% to be conservative.‬ ‭Department-Divisions with Largest Projected Personnel Surplus:‬ ‭Drivers for projected surplus likely include a tight labor market for filling highly skilled and frontline labor positions.‬ ‭Lead time for processing and hiring Public Safety + Civil Service positions. Positions may require special certifications‬ ‭or minimum entry requirements which create barriers to entry (CDL, Hoisting License, Civil Service, Internship versus‬ ‭qualifying years).‬ ‭1. ‭Fire Department - $984,275 ‭2. ‭Police Department - $643,967 ‭3. ‭Public Works- Highway - $660,387 ‭4. ‭Public Works- Building - $591,157 ‭5. ‭School Custodian - $446,022
‭City of Somerville, Massachusetts‬ ‭City Clerk’s Office‬ ‭K‬‭ATJANA‬‭B‬‭ALLANTYNE‬ ‭Mayor‬ ‭K‬‭IMBERLY‬‭M. W‬‭ELLS‬ ‭City Clerk‬ ‭DRAFT - for discussion only‬ ‭6.‬ ‭Board of Health - $437,657‬ ‭7.‬ ‭Inspectional Services - $370,052‬ ‭Department-Divisions with Largest Projected Ordinary Maintenance Surplus:‬ ‭1.‬ ‭Public Works- Building, $3,776,445, driven by utility rates (electric, gas) and on-call maintenance contracts‬ ‭(HVAC, Plumbing, Elevator, Fire Alarm)‬ ‭2.‬ ‭Public Works- Building, $1,681,103, driven by volatility of recycling market and disposal tonnage‬ ‭3.‬ ‭Public Works- Snow, $1,433,553, driven by actual snow operations and activity‬ ‭4.‬ ‭Public Works- Grounds, $860,407, driven by Spring seasonal tree pruning activity and recreation facility repairs‬ ‭5.‬ ‭Public Works- Highway, $686,519, driven by actual days of sweeping operations‬ ‭6.‬ ‭Information Technology, $269,934, potentially driven by the budgeted number of subscriptions and services‬ ‭versus the actuals needed and used depending on staffing‬ ‭7.‬ ‭Human Resources, $381,494, various as-needed service contracts such as investigations, recruitment, FMLA‬ ‭administration, contacts could be driving surplus‬