RIGHT ON TIME. UM. OKAY. GOOD MORNING. FOR THE RECORD MY NAME IS BEN WEBER. I'M THE DISTRICT SIX CITY COUNCILOR AND THE CHAIR OF THE WAYS AND MEANS COMMITTEE.
TODAY IS MAY 27TH, 2026 AND THE EXACT TIME IS 10:19 A.M. THIS HEARING IS BEING RECORDED. IT'S ALSO BEING LIVE STREAMED TO BOSTON.GOV/CITY COUNCIL DASH TV AND BROADCAST ON XFINITY
CHANNEL EIGHT, RCN CHANNEL 82 AND FILES CHANNEL 964. WRITTEN TESTIMONY MAY BE SENT TO THE COMMITTEE EMAIL AT CCW AND IN BOSTON.GOV AND WILL BE MADE PART OF THE RECORD AND
AVAILABLE TO ALL COUNCILORS. PUBLIC TESTIMONY WILL BE TAKEN AT THE END OF THIS HEARING. UH UM INDIVIDUALS WILL BE CALLED ON THE ORDER IN WHICH THEY'VE SIGNED UP ON A TWO MINUTES TO TESTIFY.
UM, IF YOU ARE INTERESTED IN TESTIFYING IN PERSON, PLEASE ADD YOUR NAME TO THE SIGN UP SHEET NEAR THE ENTRANCE. UH, OF THE CHAMBER. IF YOU'RE LOOKING TO TESTIFY VIRTUALLY, PLEASE EMAIL OUR CENTRAL STAFF LIAISON KARISHMA
CHOHAN AT CAR IS H. MCCUTCHEON AT BOSTON GOV FOR THE LINK IN YOUR NAME WILL BE ADDED TO THE LIST. THIS MORNING'S HEARING IS ON DOCKET NUMBER 1030 MESSAGE IN
ORDER AUTHORIZING THE CITY OF BOSTON TO APPROPRIATE THE AMOUNT OF $47,120,292 FOR PURPOSES OF FUNDING THE SNOW
AND WINTER MANAGEMENT APPROPRIATION TO MEET OPERATING EXPENSES, UH, OF THE FISCAL YEAR UH FISCAL PERIOD COMMENCING JUNE JULY 1ST, 2025
AND ENDING JUNE 30TH 2026. THIS MATTER IS SPONSORED BY MAYOR MICHELLE WU AND REFERRED TO THE COMMITTEE ON MAY 20TH 2026. TODAY I'M JOINED BY MY COLLEAGUES AND OUR RIVAL
COUNCILOR CULPEPER COUNCILOR FITZGERALD. UH I HAVE RECEIVED A LETTER OF ABSENCE FROM COUNCILOR LOUIJEUNE. UH, WE'RE JOINED BY OUR UH TODAY OR THIS MORNING BY OUR
CHIEF FINANCIAL OFFICER ASHLEY GRAFTON BURGER AND OUR BUDGET DIRECTOR JIM WILLIAMSON. UM. >> WE'RE JUST GOING TO, UH, GO PAST OPENING STATEMENTS, WAIVE THOSE AND IF YOU HAVE A PRESENTATION WE'LL HEAR FROM YOU AND THEN WE'LL GET TO
QUESTIONS. UM. >> NO. OKAY. OKAY. WELL THANK YOU CHAIR WEBER AND
OTHER MEMBERS OF THE BOSTON CITY COUNCIL. UH, MY NAME IS JIM WILLIAMSON. I'M THE BUDGET DIRECTOR HERE AT THE CITY OF BOSTON AND I'M JOINED BY THE CHIEF FINANCIAL OFFICER ASHLEY GRAHAM BURGER.
UH, WE APPRECIATE THIS OPPORTUNITY TO DISCUSS THE FBI SUPPLEMENTAL BUDGET AND ITS IMPACT ON THE CITY'S FINANCES. UH, WE UNDERSTAND THE ADMINISTRATION VALUES THE SHARED RESPONSIBILITY OF THE
CITY COUNCIL TO SAFEGUARD, UH, BOSTON'S LIMITED PUBLIC RESOURCES AND, UH, SERVE THAT SERVE OUR CITY'S RESIDENTS BETTER VIEW THE, UH THE APPROPRIATION ORDER BEFORE YOU
EXPLAIN THE DETAILS OF ITS FINANCIAL TRANSACTION AND REQUEST, UH, YOUR RECOMMENDATION FOR APPROVAL AT THE NEXT CITY COUNCIL MEETING. SO, UM, WHAT WE, UH WE PUT BOTH
DOCKETS. WE KNOW THERE'S A SEPARATE HEARING UH, THIS AFTERNOON WITH ,UM, ON DOCKET 0131 BUT JUST FOR, UH, COMPLETENESS UH, IN TERMS OF THE OVERALL CHANGE TO
THE BUDGET, UM, UH, DOCKET 101030 IS FOR $47.1 MILLION AND THAT'S FOR SNOW AND WINTER MANAGEMENT. UM, AND LATER TODAY WE WILL
COME IN TO SPEAK TO DOCKET 1031A $22.8 MILLION SUPPLEMENTAL FIRST PUBLIC SCHOOLS FOR UH HEALTH INSURANCE AND UH, UTILITIES.
UM, UH JUST A LITTLE UH UH UM SO THE FUNDING SOURCE THAT UH, SUPPORTS THIS APPROPRIATION UH ,THESE APPROPRIATIONS ARE FREE CASH. UM, AND JUST FOR FOR CONTEXT, I
THINK IT'S BEEN UH, COMMUNICATED A FEW TIMES ABOUT THE THE LEVEL OF FREE CASH THAT THE CITY HAS ON HAND. UH, WE STARTED UM, AT 526 BY BUDGETING 4 MILLION UH, $40
MILLION FOR OPEB WHICH HAS BEEN UH OUR STANDARD PRACTICE FOR FOR SEVERAL YEARS NOW. UH, AND WITH THESE TWO SUPPLEMENTS, THE TOTAL $70 MILLION THAT WILL BE UH, $110
MILLION DRAW ON ON THE FREE CASH BALANCE. UH, AND WE MUST REMEMBER THAT ADDITION TO THAT IS $40 MILLION CARRIED FORWARD INTO THE FALL 27 BUDGET.
SO THERE'LL BE A DRAW OF ABOUT $150 MILLION THROUGH THE TWO FISCAL YEARS, WHICH IS ABOUT 24% OF UM THE FREE CASH BALANCE OF 601.
SO UM SO UH SO WE WE UH WE UNDERSTAND THAT THIS IS SORT OF RESERVED FOR EXTRAORDINARY EVENTS AND I THINK UH, THE WAY UH WE'LL GET INTO THE SNOW AND WINTER MANAGEMENT AND AND SPEAK
TO HOW IT IS SORT OF UH DIFFERENT FROM OUR UH, RECENT YEARS EXPERIENCE WITH SNOW. UM, SO THE SNOW BUDGET SUPPLEMENTAL COVERS, UH, THE
SNOW AND ICE CONTRACTORS FOR PUBLIC WORKS, THE BOSTON PUBLIC SCHOOLS PARKS AND RECREATION AND THE MAYOR'S OFFICE OF HOUSING. SO. >> UH, THE CITY PROVIDES SNOW AND ICE REMOVAL FOR ALL THE
ROADS OPEN TO PUBLIC TRAVEL, MUNICIPAL PARKING LOTS, PUBLIC STAIRWAYS, FOOTBRIDGES, BRIDGES, PATHS, BRIDGE, UM PATHWAYS AND FOR UH AS A AS A
LANDLORD UH YOU KNOW SO THE OWNER OF CITY OWNED LOTS THEY CLEAR THE SIDEWALKS IN FRONT OF THOSE LOTS UH, EXPENSE ITEMS INCLUDE THINGS LIKE CONTRACTORS UH, BOTH EMERGENCY RESPONSE
AND, UH, THIS YEAR, GIVEN THE ACCUMULATION OF SNOW, UH, SEVERAL POST-STORM REMOVALS, UM, THEIR STAFF OVERTIME, UH, PUBLIC WORKS STAFF WHO ARE
DRIVING TRUCKS, MANAGING CONTRACTORS RESPONDING TO INCREASED UM ROADWAY TREATMENT WHICH INCLUDES SALT AND OTHER APPROACHES TO SORT OF TREATING
THE ROADWAY TO TO UM, HAVE A BETTER RESPONSE, UH, FOR SNOW REMOVAL AND ICE MELTING UH, THIS YEAR GIVEN THE ACCUMULATION OF SNOW WELL, WE RENTED SNOW MELT ERS UH UH THAT
WAS A SORT OF A, UH AN UNUSUAL SORT OF ONE TIME EXPENSE. UH UH, THE WHERE WE STORE OUR SNOW THAT WERE REMOVED FROM SORT OF MAJOR THOROUGHFARES. BUSINESS DISTRICTS ARE THINGS
WHAT WE CALL SNOW FARMS. UH, AND IT'S OFTEN SORT OF CITY OWNED UM, ASSETS BUT OTHERS UH ,PROPERTY THE CITY HAS ACCESS TO UM SO FOR EXAMPLE PARKING
LOTS OF GOLF GOLF COURSE, UM MUNICIPAL AND GOLF COURSES, THINGS OF THAT NATURE. UH AND GIVEN THAT UM OVER TIME SOME OF THE MORE UH OTHER PROPERTY HAS HAS NO LONGER IN
THE CITY'S UM CONTROL UH IT'S THE NUMBER OF SNOW FARMS HAS REDUCED SO SNOW MELT WAS BECAME MORE IMPORTANT TO MAKE ROOM IN THESE STORAGE AREAS TO TO STORE
IT UH IN THERE'S ALSO SORT OF ALL THE PERIPHERY COSTS OF UM OF OF PROVIDING A SNOW RESPONSE. UM SO THIS OUR CENTRAL FLEET IS
REPAIRING EQUIPMENT, YOU KNOW, UH, RETROFITTING IT FOR SNOW RESPONSE. UH, AND ALSO WITHIN UH THE SNOW PREPARATION WE CHARGE THE UM THE DEBT SERVICE FOR LIKE
REPLACEMENT OF SNOW EQUIPMENT SO LARGE, YOU KNOW, UM, SPROUT AND SNOW SPREADERS AND PLOW BLADES IN THE LIKE, UH, AND THEN EVEN SOME OF THE MORE UH,
SORT OF LOWER LEVEL COST THINGS LIKE WEATHER MONITORING COSTS AND THINGS OF THAT NATURE. SO UM, I GUESS SNOW IN UH WINTER MANAGEMENT HIGHLIGHTS
AND I KNOW UH UM CHIEF GOVE CAME DOWN HERE AND DID A PRESENTATION UH, IN EARLY MARCH UM RIGHT ON THE HEELS OF THOSE THOSE SNOW STORMS BUT UM IT'S
WE ARE NOT ALONE IN IN DEALING WITH THESE SORT OF UH UH, VARIABLE SNOW UH, OCCURRENCES IN THE CITY. SO UH AND IT'S NOT UNCOMMON FOR
COMMUNITIES, UH, AROUND THE STATE TO SEEK FREE CASH SUPPLEMENTALS TO UH, CLOSE UH, A BUDGETARY UH, CAP, UM, FOR SNOW REMOVAL.
SO IT'S IT'S UM WELL, THERE'S A REPORTING DEADLINE FOR THE CURRENT FISCAL YEAR, ISN'T IT, UNTIL SEPTEMBER 15TH. SO COMMUNITIES AROUND THE STATE ARE GOING TO THEIR THEIR UM,
SELECT BOARDS IN TOWN MEETINGS TO GET THESE SUPPLEMENTALS TO CLOSE THE BOOKS. THEY DON'T ACTUALLY OFFICIALLY HAVE TO REPORT THEIR SNOW AND ICE REMOVAL COSTS UNTIL THE
STATE UH BUT THAT'S HOW UM, SENSITIVE AND HOW UH IMPACTFUL IT IS TO MUNICIPAL BUDGETS FOR THE STATE SEPARATES THAT ONE COST ITEM IS UH IS SOMETHING THAT THEY WANT TO PAY ATTENTION
TO IT HAVE ALL THESE STATE LAWS ,YOU KNOW, MASS GENERAL LAW CHAPTER 4431 SO IT SPEAKS TO THE EMERGENCY NATURE OF OF SNOW REMOVAL AND THE FACT THAT YOU
CAN OVERSPEND YOUR APPROPRIATION UH, THIS PAST WINTER, UH SAW 61.6IN OF SNOW MARKING THE COLDEST AND SNOWY SPRING IN 11 YEARS.
SO WE SORT OF FELL INTO A LITTLE BIT OF COMPLACENCY AND NOT BEING UH, SORT OF HAVING THIS UH THING ON AVERAGE IT WAS UH 2.1% BELOW NORMAL REVERSING
A TEN YEAR TREND WHERE UH TEMPERATURES IN THE WINTER AROUND HERE HAVE BEEN 3% THREE DEGREES HIGHER. UH, THE UH THE STREETS TEAM AND
OTHER TEAMS UH SCHOOLS AND PARKS AND MINIMUM WAGE MANAGE 20 DIFFERENT DISTINCT WINTER WEATHER EVENTS THIS WINTER REQUIRING ALMOST CONTINUOUS ICE RESPONSE DURING THAT EXTENDED
COLD PERIOD. UM AND JUST TO HIGHLIGHT THERE WAS SORT OF TWO UH MAJOR WINTER STORMS THAT BOOKEND BETWEEN A PERIOD OF VERY COLD WEATHER.
SO UH, THE JANUARY 25TH 226 STORM UH WAS 23.2IN OF SNOW IN A 36 HOUR WINDOW AND I THINK UH ,THOSE WERE NOTES UH, TAKEN FROM CHIEF GROVES AND
PRESENTATION BEFORE THIS BODY, YOU KNOW, TALKING ABOUT HOW THE CITY'S RESPONDING TO THAT STORM AND IN THE FEBRUARY STORM AS WELL I BELIEVE IT WAS IN EARLY MARCH, UH, THE SECOND STORM
WHICH WAS NOT REGIONALLY DISPERSED EVENLY. UM, I THINK UH UH I THINK THE SOUTHEASTERN MASSACHUSETTS AND EVEN INTO RHODE ISLAND THEY WERE MORE ADVERSELY IMPACTED.
IT WAS A NAMED STORM WINTER STORM HERNANDO UH CIVIC BUT IT IN BOSTON IT WASN'T AS AS MUCH ACCUMULATION AS THE PREVIOUS STORM SO IT WAS 17.1IN DURING
THE BLIZZARD OF 2026 OR WINTER STORM ORLANDO. UH AND ULTIMATELY ONCE FEMA DID THEIR SORT OF CALCULATION OF ELIGIBILITY FOR FEMA, SUFFOLK COUNTY WAS EXCLUDED
BECAUSE WE DIDN'T HIT OUR SORT OF YOU KNOW, PROBABLY NOT DOING THE JUSTICE ON THE THE FORMULA THEY USE BUT IT'S NOT A RECORD IN THEIR MIND TO TO UNLOCK UM,
FEDERAL RESOURCES. AND SO UM EVEN BEFORE UH THE UH THE WINTER THAT WE UH, ENDURED WE WERE WE'RE WORKING TOWARDS
UM UH, CLOSING WHAT WE ANTICIPATED OF OF REVENUE THAT WAS NOT MEETING SORT OF UM UH, YOU KNOW, THE ESTIMATED AMOUNTS UH, YOU KNOW, SO SPENDING THAT
WE'RE WELL, WELL ACQUAINTED WITH UH, LIKE UH, PUBLIC SAFETY OVERTIME AND EXECUTION OF COURT SPENDING AND THEN UH, AS AS WE JUST TALKED ABOUT THINGS THAT
ARE ARE NOT AS UM CONSISTENT BUT SNOW REMOVAL. UM, SO WE WENT THROUGH A PROCESS OF DOING A MORE CONTROLLED HIRING PROCESS.
UM, SO AND ONE OF THE ONE OF THE THINGS IS UM, UH ACTUALLY, YOU KNOW, UH, YOU KNOW, WORKING WITH THE MAYOR'S TEAM COMMUNICATED TO UM, THE
COUNCIL ON THE STATUS OF UM THE FY 26 BUDGET UM TOWARDS THE END OF MARCH AND WE HAD ALREADY SORT OF UH, TRY TO CAPTURE WITHIN THAT PROJECTION TO NOT OVERSTATE UM, UH THE POSITION
WE WERE IN UH UH SOME OF THE SAVINGS THAT WERE RECEIVING AND INITIALLY IT WAS SORT OF UH UH SORT OF A CONTROLLED HIRING APPROACH WITH FILLING VACANCIES
WITH SOME OTHER VERY NON-DISCRETIONARY, VERY DISCRETIONARY EXPENSES LIKE UH, FOOD TRAVEL, YOU KNOW, UH, SLIDE WHICH IS SORT OF LIKE
CITY UM, NONUNION REQUIRED CLOTHING AND THINGS LIKE THAT BUT NOT THE BIGGEST COST ELEMENT BUT SORT OF A WAY TO SORT OF MANAGE COSTS WITHOUT HAVING UH A LOT OF IMPACT ON
DEPARTMENTAL OPERATIONS. UM, BUT UH, CONTINUED HIRING IN ESSENTIAL ROLES WHERE WE WHERE WE WERE AUTHORIZING SPENDING SOMEPLACE PLACES LIKE UH E911
CALL TAKERS, UM, UH LIFEGUARDS UH THOSE SORT OF TITLES CONTINUE TO FILL AND ACTUALLY WE'VE BEEN SUCCESSFUL IN FILLING THOSE TITLES EVEN UH UH SORT OF THE MUCH LOVED UH OR
HATED I GUESS PARKING ENFORCEMENT OFFICERS LOVED IN FORM IN TERMS OF REGULATING THE THE CURB. UH, BUT YOU KNOW, NO ONE LIKES TO GET A PARKING TICKET WHEN WHEN YOU, UH, VIOLATED THE THE
REGULATIONS. BUT, UM, SO THOSE ARE THINGS THAT ARE CONTINUE TO HIRE UH AND THEN NON-PERSONAL UH, SPENDING SO WE UM WE STILL
MAINTAIN THAT THOSE SORT OF MORE UM DISCRETIONARY SPENDING CONTROLS BUT ALSO UM, YOU KNOW, GIVEN WHERE WE WERE AND WE NEEDED TO CLOSE THAT AND HAD THE BENEFIT OF KNOWING
WHERE THE DIRECTION WE WERE HEADING FOR SNOW UM, WE PUT ON A MORE STRINGENT AND I THINK THAT COMMUNICATION WITH THIS HISTORICALLY HAS BEEN A TRANSITION MEMO, UM, FOR DEPARTMENTS GETTING READY TO
CLOSE OUT THE FISCAL YEAR AND GETTING READY FOR THE NEXT FISCAL YEAR BUT ALSO INCLUDED PROVISIONS FOR UH CONTROLLING OUR NON PERSONNEL SPENDING WITH SORT OF UP A WAY TO SORT
OF BEING VERY DELIBERATIVE ON HOW LONG PERSONNEL SPENDING UH SO THAT THAT'S DRIVEN AGAIN UM UH YOU KNOW UH SOME MODEST
SAVINGS BUT MANY OF THE SAVINGS THAT WE ACHIEVED UH, HAVE BEEN UH OFFSET BY COUNTERBALANCING SORT OF GROWTH AND EXPENDITURE ITEMS. SO WE HAD MORE FLAHERTY ON THE
SECURITY NEEDS FOR WORLD CUP SOCCER. UM, NEW UH HAD MORE INFORMATION ON THE NUMBER OF EVENTS, THE DURATION OF EVENTS, UM, YOU KNOW, OTHER COMMUNITY BASED
EVENTS RELATED TO IT. SO THOSE HAVE BEEN BAKED IN WITH UH, WITH NOW THE BETTER UNDERSTANDING OF GRANT AWARDS. UM, AND THEN YOU KNOW, UH, UH,
INCREASING ENERGY COSTS. WE DID SEE WE SORT OF UH, PUT IN A MORE MORE ACCURATE A MORE UM REFLECTIVE OF WHAT WE'RE SEEING IN REAL TIME, UH, ON
COSTS RELATED TO ENERGY. SO BUT, UM, WE DO FEEL CONFIDENT THAT WITH THESE UPDATED PROJECTIONS AND SOME ADJUSTMENTS WE WE CAN WITH THIS
UH UM, UH, $47.1 MILLION FOR THE CITY IN THE $22.8 MILLION WILL BE THAT WE WILL END THE BUDGET, UH, ON BALANCE. SO WITH THAT THANK YOU.
OKAY. >> YEAH. THANK YOU VERY MUCH AGAIN. SO THIS AFTERNOON WE'RE HAVING A HEARING ON UH THERE'S SUPPLEMENTAL. UM SO I'M GOING TO GO TO MY COLLEAGUES IN GERMANY COUNCILOR FITZGERALD. IF I DIDN'T SAY THAT ALREADY.
UH, SO COUNCILOR CULPEPPER, WE'RE GOING TO AN EIGHT EIGHT MINUTES, UH, FOR A FIRST ROUND. AND, UH. >> FOR. ME TO COME BACK. WE'LL DO THAT. WHENEVER YOU'RE READY. THANK YOU, MR CHAIR. >> I ONLY. >> GET THE MIC. UH. EIGHT MINUTES.
>> I'M SORRY. COUNCILOR KILPATRICK. JUST. THANK YOU, MR CHAIR FOR EIGHT MINUTES. I MUST SAY THIS IS THE FIRST TIME SINCE I'VE BEEN IN THIS
MICROPHONE THAT I'VE BEEN GIVEN EIGHT MINUTES TO TALK AND I PROBABLY ONLY HAVE TWO MINUTES WORTH OF QUESTIONS. SO IF I COULD SAVE SOME OF MY TIME FOR LATER IN THE WEEK WHEN
I REALLY NEED THAT SIX MINUTES, I'D BE TRULY GRATEFUL. YOU KNOW, JIM AND I TALKED EARLIER BEFORE WE GOT BEFORE YOU CAME IN MOST OF MY QUESTIONS HE'S ANSWERED ALREADY.
I WAS ASKING HIM ABOUT THE STATE BUDGET AND HOW IT BALANCED AND WHY WE HAD TO LEVEL FUND. BUT JIM, JUST TALK ABOUT THAT A LITTLE BIT MORE BECAUSE I THINK
YOU HELP ME CUT DOWN ON THE NUMBER OF QUESTIONS I HAD. WHEN YOU STARTED TALKING ABOUT ME AND CHARISMA, UH, TALKING ABOUT THE STATE LAW AND WHAT WE HAD TO DO IN ORDER TO COMPLY
WITH THE STATE LAW. I THINK YOU ACTUALLY SORT OF SUMMARIZED IT A BIT AS WELL. SO MASS GENERAL LAW CHAPTER 44 UH SECTION 31 D ALLOWS FOR POLICE POWERS TO EXCEED THEIR
SOLE APPROPRIATION. ONE CAVEAT IS IS THAT UM UH YOU CAN DO IT AUTOMATICALLY WITHOUT ANY PERMISSION BY UM UH AS LONG AS YOU HAVEN'T REDUCED YOUR
PRIOR YEAR'S APPROPRIATION. SO UH, YOU KNOW, I THINK THAT'S A GOOD A GOOD RULE BECAUSE IT'S SORT OF YOU DON'T WANT TO UM, SORT OF UH, ARTIFICIALLY LOWER SOMETHING THAT IS IS A COST.
TO TALK ABOUT THAT A LITTLE BIT SO LONG AS YOU DON'T REDUCE YOUR PRIOR YEAR'S APPROPRIATION. SO THAT THAT IS SORT OF A PROVISION OF THE LAW THAT SAYS
THAT, UM, UH, YOU DON'T NEED TO LIKE SEEK ANY PERMISSION TO LIKE EXCEED IT AS LONG AS YOU HAVE TO REDUCE THE BARRIERS, YOU KNOW, SO THE CURRENT YEAR APPROPRIATION. IS IS AT LEAST AS MUCH AS THE PRIOR YEAR.
AND THAT'S WHY WE ENDED UP AGAIN WITH THAT 22 MILLION FROM THE PRIOR YEAR. RIGHT. >> AND IT'S IDEALLY IT'S IT'S UM YOU SHOULD BE HAVING
BUDGETING SOMETHING ON A CONSISTENT. PATTERN OF EXPENDITURE. UM THE PROBLEM IS IS WITH. STORMWATER MANAGEMENT WE HAVEN'T REALLY ESTABLISHED A CONSISTENT PATTERN OF SPENDING
. SO IT'S IN IN IN ANY DOLLAR YOU BUDGET UM UH YEAH GETS FACTORED INTO THE OVERALL SIZE OF THE
BUDGET AND UH, YOU KNOW, CLAIMS RESOURCES THAT MAY BE AVAILABLE FOR ANY OTHER PART OF THE BUDGET. AND SO WE'RE GOING TO BE AT $70 MILLION OVERALL FOR THE SNOW.
THIS YEAR AND NEXT YEAR. WE CAN'T WE DON'T WE WON'T HAVE A FISCAL YEAR 27. BUT THE BUDGET FOR FISCAL YEAR 2017 IS THE SAME AS IT WAS LAST
YEAR. KNOWING THAT WE COULD HAVE WE COULD BE SITTING HERE NEXT YEAR SAME TIME WITH ANOTHER 40 PLUS MILLION DOLLAR SUPPLEMENT.
UM. WE CERTAINLY HOPE THAT THIS WAS LIKE AN EXTRAORDINARY EVENT BUT DOESN'T REPEAT ITSELF EVERY YEAR. YEAH COULD BE MORE JIM HOW MUCH
ARE THE PRIVATE CONTRACTORS PAID PER HOUR THAT ACTUALLY DOING THIS. IS IT I WILL DEFER TO THE STREETS ACCOUNTANT BUT IT IS BASED ON THE TYPE OF EQUIPMENT . SO LIKE THE HOURLY RATE FOR A
SMALL PICKUP TRUCK VERSUS A BIG TEN WHEELER VERSUS A YOU KNOW, A BIG FRONT END LOADER OR UH BUT IT'S THAT UH I WOULD I WOULD DEFER TO THEM ON THE
EXACT RATE I KNOW THERE WAS A CONTRACT YEAR CHANGE IN THAT FY 25 AND THE RATES WENT UP CONSIDERABLY, YOU KNOW, BETWEEN FISCAL YEAR 424 AND THEREFORE 25. SO THAT MANIFESTED ITSELF A
LITTLE BIT IN THE IN THE DEFICIT THAT WE ACHIEVED LAST YEAR. UH, A MORE MODEST DEFICIT, MANAGEABLE DEFICIT. UH, BUT UM, THAT IS AND THAT'S
UH A FUNCTION OF CONTRACTORS BUILDING AND THEIR LABOR COSTS ALL OF THEIR OVERHEAD, UH, INTO THOSE RATES UH, LABOR EQUIPMENT
,FUEL, INSURANCE, ALL OF THE LIKE WHICH ARE ALL, YOU KNOW, AS AS EVERYBODY KNOWS, A. GROWING UM. COULD YOU AT SOME POINT GIVE US THROUGH THE CHAIR A BREAKDOWN
OF THE CONTRACTORS SPENDING THE STAFF OVERTIME, THE EQUIPMENT REPAIR AND, UM, REALLY INTO SITTING IN THE SNOW MELTER AND THOSE OPERATIONS I REMEMBER
YEARS AGO THERE WAS A LOT OF DISCUSSION AND, UH, MAY REST IN PEACE, MA'AM, WHEN NINO OF BUYING SNOW MELTS BECAUSE NEW YORK HAD. YOU KNOW, THEY HAD SNOW MELT AS
LONG FOR ANYONE AND I THOUGHT WE HAD BOUGHT SOME BUT I GUESS NOT, HUH? >> I THINK WE RENTED THEM THE LAST TIME WE RENTED. IS THERE ANY. POSSIBILITY OF US STARTING TO
LOOK AT BUYING SNOW MELT THIS YEAR? THEY SAVE ON SALT. THEY SAVE ON SPACE. YEAH I THINK A GOOD SORT OF COST BENEFIT OF OF THE UTILITY IN A MUNICIPAL
ENVIRONMENT WHAT WHAT YOU'LL HEAR ANECDOTALLY THAT IT'S IT'S VERY CHALLENGING TO OPERATE THEM IN A YOU KNOW URBAN SNOW ENVIRONMENT BECAUSE IT'S IT'S OUR SNOW IS NOT PRISTINE LIKE
AN AIRPORT OR SOMETHING. IT SHOULD HAVE GOT IN PROBABLY THE AIRPORT. >> IS. NOT COMPLETELY PRISTINE ABOUT UH WE HAVE FURNITURE AND YOU KNOW ALL. WE GET THE SAME SNOW. NO YOUR GOODS. RIGHT DON'T WE? ALL RIGHT.
PROBABLY A LITTLE MORE THAN THAT. RIGHT. >> BUT THEY THEY'VE DONE SO WELL WITH THOSE. SNOW MELTS AND SO WHO'S GOING TO SAVE MONEY. RIGHT. >> YEAH WE CAN CERTAINLY UH. MIGHT MAKE SENSE TO LOOK INTO
UM YEAH YEAH YEAH. UM AND. IF YOU COULD JUST GET. THOSE CATEGORIES UH, TO ME THROUGH THE CHAIR UH, AND
THEN I WANTED TO LOOK AT THE NUMBER OF PRIVATE CONTRACTORS VERSUS THE IN-HOUSE CONTRACTORS OR CITY OPERATIONS. HOW DOES THAT MEASURE UP AND
HOW ARE WE DOING WHETHER WE NEED TO BEEF THAT UP FOR THE FUTURE OR CUT IT DOWN? I'LL JUST I JUST WANTED TO LOOK AT THOSE NUMBERS THEN WE CAN TALK ABOUT THEM LATER, MR CHAIR . THAT'S ALL I HAVE WHEN I HAVE TIME.
LET'S SEE. THE ONE MINUTE AND 41 SECONDS. I JUST SAW A, UH. THANK YOU, MR CHAIR. JUST TO FOLLOW UP BASED ON. UM. >> WHAT COUNCILOR CULPEPPER SAYING. SO FIRST OF ALL.
UH UH, I JUST LOOK AT CHAPTER 44 SECTION 31 D IT'S IT'S PRETTY CLEAR YOU KNOW, IT JUST SAYS. UH, THAT. >> YOU CAN SPEND OVER FOR SNOW REMOVAL, YOU KNOW, UH, PROVIDED THAT THE APPROPRIATION.
FOR SUCH PURPOSES IN THE FISCAL YEAR EQUALED OR EXCEEDED THE APPROPRIATION FOR THE. FOR SNOW REMOVAL IN THE PRIOR FISCAL YEAR. KNOW. >> UH, SO THAT'S SO IF WHAT HAPPENS IF YOU'RE IF YOU WE
APPROPRIATED $21 MILLION IN FISCAL YEAR 27 AND WE WENT OVER. I. >> I THINK THERE'S AN APPROVAL PROCESS THAT WE WOULD HAVE TO GO THROUGH IN ORDER TO OVERSPEND OUR BUDGET.
WHEREAS NOW BASED ON THAT LAW YOU JUST CITED, WE CAN JUST DO IT WITHOUT ADDITIONAL AUTHORIZATION. BUT IF YOU REDUCE IT THERE'S OTHER STEPS THAT YOU WOULD NEED TO GO THROUGH IN ORDER TO SPEND
BEYOND THAT APPROPRIATION. OKAY. >> AND THEN I JUST BEFORE I SORRY COUNCIL UH IT DOES IT SAYS THAT IF YOU DO GO OVER EXPENDITURES MADE UNDER THE AUTHORITY, THE SECTION SHALL BE CERTIFIED TO THE BOARD OF ASSESSORS AND INCLUDED. >> IN THE NEXT ANNUAL.
TAX RATE. CAN YOU. EXPLAIN EXPLAIN. WHAT THIS APPROPRIATION DOES FOR THE. TAX RATE? I GUESS. SO YES I WILL DO MY BEST. THIS HAS BEEN AN EDUCATION THAT WE HAVE GONE THROUGH TO THIS
YEAR AS WE'VE BEEN LEARNING MORE ABOUT UM OVERSPENDING. SO UM BASICALLY IF YOU INCUR A DEFICIT IN YOUR SNOW SPENDING IN ONE FISCAL YEAR THE NEXT
FISCAL YEAR YOU WOULD HAVE TO ENSURE THAT YOU ARE RAISING ENOUGH TAXES TO COVER THAT DEFICIT SO YOU HAVE TO DEAL WITH IT IN THE NEXT YEAR.
UM, AND YOU'RE STILL CAPPED BY ,YOU KNOW, YOUR LEVY AND PROP TWO AND A HALF AND ALL OF THAT BUT YOU WOULD SO YOU WOULD NEED TO ENSURE THAT THERE IS SUFFICIENT TAX REVENUE THAT YOU'RE RAISING IN ORDER TO
COVER THAT SHORTFALL FROM THE PRIOR YEAR. OKAY. >> UH I SO I, I PAUSED YOUR TIME IN ONE MINUTE 38 UH BUT. UM UH BUT SO SO BASICALLY CAN YOU JUST JUST EXPAND A LITTLE
MORE SO THE FISCAL YEAR 27 BUDGET, DO WE THEN HAVE TO PUT IN AN EXTRA $47 MILLION? SO BECAUSE WE'RE DOING THIS SUPPLEMENTAL AND HOPE THAT WE'LL HAVE THE COUNCIL SUPPORT AND APPROPRIATING FREE CASH, WE
WON'T BE IN THAT POSITION BUT SHOULD WE YOU KNOW, IF WE WEREN'T PURSUING A SUPPLEMENTAL WE WOULD HAVE TO SOMEHOW ACCOUNT FOR IT IN NEXT YEAR. OH OKAY. YEAH THAT THAT HELPS. UH OKAY. THANK YOU.
UH. COUNCILOR COPEPODS. YOU HAVE. >> ACTUALLY. >> IF WE WEREN'T PURSUING. >> THE SUPPLEMENTAL, YOU'RE SAYING THAT WE WOULD HAVE TO ACCOUNT FOR NEXT YEAR. UM.
AND SO WHAT IF WE WEREN'T. PURSUING A SUPPLEMENTAL? WHAT WOULD THAT LOOK LIKE? YEAH, WELL, I MEAN, THE THE BIG THING THAT JIM AND I ARE FOCUS ON TOO IS NOT HAVING THE CITY'S
BOOKS AND IN DEFICIT THIS YEAR RIGHT WE OKAY THAT WOULD BE NOT GREAT FOR. THE THE BOND RATING. THE BOND RATING ALL OF THAT RIGHT SO WE'RE TRYING TO CURE
THAT SHORTFALL BEFORE JUNE 30TH SUCH THAT WE DON'T END IN DEFICIT. AND SO. IF I MAY UM SO THE ADMINISTRATION TALKED ABOUT
USING THE USE OF FREE CASH AND THINK THE MAYOR SAID IT WAS FISCALLY IRRESPONSIBLE. UH, BUT WE'RE USING FREE CASH THIS.
YEAR WAS USED LAST YEAR. WHAT'S THE. >> DISTINCTION IN TERMS OF WHEN IT'S APPROPRIATE TO USE FREE CASH AND WHEN IT ISN'T? YES. >> UM SO I'M I PULLED UP I ANTICIPATED THAT QUESTION SO I
PULLED UP THE GUIDANCE FROM THE STATE ON THE USE OF FREE CASH AND UM FROM DHL'S DIVISION OF LOCAL SERVICES AS A NON RECURRING REVENUE SOURCE.
FREE CASH SHOULD BE RESTRICTED TO PAYING ONE TIME EXPENDITURES UH, FUNDING CAPITAL PROJECTS OR REPLENISHING OTHER RESERVES AND WE DO NOT RECOMMEND THAT FREE CASH BE BUDGETED FOR ONGOING
OPERATIONAL PURPOSES. SO REALLY THE ONE TIME KIND OF UNIQUE EMERGENCY NATURE OF THE EXPENSE MAKES FREE CASH AN APPROPRIATE RESOURCE FOR THE EXPENDITURE.
WELL, YOU KNOW WE HAVE DIFFERENT INTERPRETATIONS OF WHAT NONRECURRING IS BECAUSE I DON'T THINK SNOW REMOVAL IS NON-RECURRING BUT UH MR CHAIR,
MY TIME IS UP. THANK YOU. >> I I KNEW YOU WOULDN'T LET ME DOWN. I FORGOT TO EVEN UM OKAY. COUNCILOR FITZGERALD. THANK YOU. >> CHAIR. UM. >> JUST THINKING. >> OFF OF YOUR LAST COMMENT THOUGH.
IT JUST SORT OF GIVES MORE CREDENCE TO SUPPORT THE SUPPLEMENTAL. I THINK IT'S FAIR TO SAY WE NEVER WANT TO GO INTO A FISCAL YEAR PLANNING TO PULL FROM RESERVES OR FREE CASH, BUT AT THE END OF THE YEAR, YOU KNOW,
GIVEN ANY SORT OF CIRCUMSTANCES THAT YOU CAN AND THAT CERTAINLY UM I THINK IT'S A RED FLAG FOR FOR THE RATINGS AS WELL IF THE PLAN GOING INTO A FISCAL YEAR IS IS PULLING FROM FREE CASH.
SO I DO UNDERSTAND IT FROM THAT REGARD. UM BUT I GUESS WELL I'LL START WITH THE SNOW AND THEN I HAVE QUESTIONS JUST ABOUT THE HOW MONEY WORKS AFTER THAT.
UM, A LOT OF WHAT I'M HEARING IS 2015 VERSUS 2026, RIGHT? BUT MY INTERPRETATION IS UM, COSTS HAVE GONE UP.
YOU KNOW, LABOR HAS GONE UP, UH ,MATERIALS HAVE GONE UP ETC. UM. BUT WHAT WAS THE ACTUAL SNOW FROM 2015. >> TO 2026 AND WHAT DID WE SEE IT WAS THERE ANY OTHER DIFFERENCE THE WAY WE
APPROACHED IT UH, IN TERMS OF HOW TO MOVE THE SNOW, WAS IT THE WAS IT A MORE I KNOW THERE WERE MORE SNOW OCCURRENCES THIS YEAR I THINK BUT THERE WAS MORE
SNOW FALL IN 2015 AND I THINK JUST A LOT OF PEOPLE HAVE ASKED ME THAT QUESTION OF LIKE WE DID THIS, YOU KNOW, 11 YEARS AGO AND WE DIDN'T HAVE TO GO 47 MILLION OVER BUDGET.
SO WHAT WAS THE PURPOSE OF THAT YEAR? I THINK IF IF YOU COULD EXPLAIN THAT ANSWER TO TO. FOLKS NO IT'S IT'S THE EXACT QUESTION WE ALL HAD THIS. TIME WITH UM SO YOU'RE IN IN 20
1415 IT WAS 110IN OF SNOW. UM. . A. SLIGHTLY MORE UH NUMBER OF UM OCCURRENCES OR EVENTS 27 UM BUT
WE IT'S IT'S BASICALLY YOU KNOW. UM SOME TEN YEARS LATER, UH, IN TERMS OF COST GROWTH, UM, THE UH THE APPROACH WE ACTUALLY
PUSHED A LOT ON ASKING ABOUT HOW ARE YOU DOING THINGS DIFFERENTLY AND MAYBE UH, THIS YEAR, UH, THE NUMBER
OF REMOVALS WAS PROBABLY UM BUT IT WAS UH, EVENT SPECIFIC. IT WAS SORT OF IT WASN'T MELTON IT WAS UH IT WAS ACCUMULATING UH IMPEDING UH MOBILITY.
UM SO ULTIMATELY WE AGREED WITH THE APPROACH THAT IT WAS NECESSARY TO UH FOR PUBLIC SAFETY AND. ACCESS AND. >> TO DO THAT UH AND THEN WE WERE COMPOUNDED BY THE FACT SO
YOU HAVE COST GROWTH IN TEN YEARS, UH, LESS SPACE TO STORE, YOU KNOW, UH, REMOVED SNOW, UH. AND THEN THE. >> NEED TO, UH, DEPLOY RENTED MELT OR A SORT OF AN EMERGENCY BASIS TO. SORT OF MELT IT.
>> TO. MAKE ROOM FOR MORE SNOW. SO UM, BUT, UH, THE STREETS TEAM HAD SAID THAT NOT OPERATIONALLY, YOU KNOW, ON A SNOW FIGHTING OR EMERGENCY
SILVER FROM THERE'S THE FOLLOWING TYPICAL PROTOCOLS. YEAH OKAY. UNDERSTOOD. >> WE ALSO HAD THE BENEFIT OF GETTING A FEW MCCLAIN AND UH, IN 2015. GOTCHA TO COVER THAT COVETED DO
WE KNOW HOW MUCH THAT THAT COVERED. IT? >> IT COVERED ABOUT $3 MILLION OF OUR COST THAT DIDN'T HAVE TO GO INTO THE GENERAL FUND. IT WAS COVERED BY. FEMA BY FEMA. SO 3 MILLION OF THAT. OKAY. WHERE ARE WE OVER IN 2015?
DID WE DO WE WE WENT PAST OUR SNOW BUDGET IN 2015 SIMILAR TO THIS YEAR RIGHT. UM HOW. >> MUCH OVER WHERE WE THEN IT. >> WAS ROUGHLY $20 MILLION. OVER 20,000,003 MILLION COVERED BY FEMA. SO WE HAD TO ABSORB 17 MILLION
AND DID WE DO A SUPPLEMENTAL BUDGET IN 2015 AS WELL? UM, WE DID NOT UM HAVE TO DO THAT IN 2017. WE JUST HAD ENOUGH OF A BUFFER. BUILT INTO. >> THE BUDGET. CASH ON HAND A YEAR ROUND TO.
TO COVER. IT TO TAKE THAT ON. GOTCHA. UM. SO 150 MILLION UH THAT ALTOGETHER WE'RE USING I UNDERSTAND THAT YOU KNOW THE 110 IS ONES COMING FROM SNOW. >> THE OTHER WILL BE FOR.
BP'S UM AND THAT 40 MILLION THAT WE THAT'S AN ANNUAL THING, RIGHT? CAN YOU JUST EXPLAIN TO ME WHAT THAT IS USED FOR? >> AND WE PULLED IT OUT. TO START A FISCAL YEAR AND I KNOW THAT RIGHT. IF I'M CORRECT AND I KNOW WE JUST STARTED THIS CONVERSATION
SAYING. UH, USUALLY. STARTING A FISCAL YEAR BY PULLING FROM RESERVES. >> BUT I KNOW THAT THIS IS A CONSISTENT THING. CAN YOU EXPLAIN TO ME WHY IT'S A CONSISTENT THING AND WHY IT HAPPENS AT THE BEGINNING OF A FISCAL. YEAR PULLING FROM RESERVES JUST SO.
PEOPLE UNDERSTAND WHAT YOU'RE. ALREADY PULLING FROM THERE TO. START THERE WHY NOT JUST PULL MORE? YES. >> SO WE UH HISTORICALLY BUDGET $40 MILLION OF AVAILABLE FUND BALANCE TO FUND OUR
CONTRIBUTION TO OUR RETIREE HEALTH CARE LIABILITY. UM, SO THAT $40 MILLION REVENUE MATCHES, UH, $40 MILLION
DISCRETIONARY EXPENSE. RIGHT. WE'RE NOT UNDER THE SAME KIND OF SCHEDULE FOR OUR, UM, OPEB LIABILITY AS WE ARE WITH OUR PENSION, BUT IT'S A LARGE LIABILITY AND SO WE WANT TO START.
SPENDING, YOU KNOW, MAKE. MAKE SOME PROGRESS TOWARD THAT. SO WE WE ACKNOWLEDGE THAT UM, EXPENSE WITH THAT ONE TIME REVENUE SOURCE WE DON'T ALWAYS
END UP NEEDING TO USE THAT $40 MILLION OF AVAILABLE FUND BALANCE TO FUND THAT CONTRIBUTION. SO SHOULD REVENUES COME IN SUFFICIENT DURING THE YEAR WE CAN COVER THAT EXPENSE WITHOUT
PULLING IN THAT FUND BALANCE. UM AND SO THAT HAPPENS AND YOU KNOW, SOME YEARS WHERE WE DON'T ACTUALLY NEED TO USE THAT THAT MONEY TO FUND THAT PARTICULAR EXPENSE OKAY. BUT JUST TO SO FOR FOLKS WHO
UNDERSTAND WHAT YOU'RE ALREADY PULLING FROM THAT'S WHAT IT'S FOR. IT GOES TO FUND OUR OPEB AND THAT IS JUST A CONTINUOUS DOWN PAYMENT AS WE BECAUSE IT IS SUCH A LARGE NOT THAT WE HAVE TO WE'RE JUST DOING OUR FISCAL RESPONSIBILITY TO PAY THAT
DOWN. UM IS THERE. >> A PERCENTAGE OF THAT I KNOW YOU SAID THE 150 THAT WE'RE PULLING. >> IS ABOUT. 25% OF OUR CERTIFIED FREE CASH. IS THERE A. PERCENTAGE THAT'S GIVEN OR GUIDANCE FROM THE STATE THAT IS
SORT OF A UH A TIPPING POINT THAT THEY MIGHT SAY HEY, YOU NEVER WANT TO PULL. X AMOUNT MORE. AND AND GIVEN. UH I KNOW WE THINK RIGHT IT'S LIKE 1.7 1.9 BILLION OF OF UH
FREE CASH. 601 MILLION OF IT IS. CERTIFIED WHICH MEANS THAT'S WHAT WE CAN ACTUALLY DRAW DOWN FROM. UM, IF WE'RE DRAWING DOWN 150. KNOWING 40 OF IT IS FOR THE
ANNUAL DOWN PAYMENT FOR OPEB AND THE OTHER 110 IS FOR. UM SNOW AND WINTER. MANAGEMENT THAT HAS HAPPENED AND BP'S. SHORTFALLS THAT HAVE HAPPENED. UM I WONDER IF THERE IS A HOW
DO WE REPAY THAT AND THEN YOU KNOW, BECAUSE YOU. >> COULD JUST SAY OH IF THAT'S THE SAFE AMOUNT TO PULL DOWN EVERY. YEAR WE COULD ALMOST SAY WHAT WE'LL WE'LL TAKE AWAY 25% EVERY YEAR. HOWEVER I DON'T THINK THAT. THAT THAT TAKES US VERY FAR FISCALLY RIGHT.
SO HOW IS THAT MONEY THEN. PUT BACK IN AND HAVE WE BUDGETED LIKE AT THE END OF THE YEAR WE'LL. >> HAVE X AMOUNT OVER REVENUE THAT WILL THEN REPLACE IT WITH IS THAT HOW IT WORKS. YEAH SO WE DON'T UM NECESSARILY
IT DEPENDS ON HOW YOU CLOSE THE FISCAL YEAR. AND SO YOUR YEAR END BUDGETARY BALANCE WILL CONTRIBUTE TO THAT OVERALL FUND BALANCE WHICH THEN
IS KIND OF THE BASIS FOR THE CALCULATION OF YOUR FREE CASH. UM, SO IN THE YOU KNOW, PAST COUPLE OF YEARS WHERE WE'VE ENDED THE YEAR WITH A PRETTY SIGNIFICANT SURPLUS I THINK IN
23 AND 24 IN PARTICULAR, UM, THAT HELP TO REPLENISH OUR FUND BALANCE AND THEN THEREFORE OUR FREE CASH. AND SO IT'S REALLY A FUNCTION OF, YOU KNOW, HOW YOU END THE YEAR AND HOW MUCH OF A SURPLUS
YOU HAVE AVAILABLE TO THEN KIND OF REPLENISH THAT AND THEN ALSO AS I UM HAVE MENTIONED BEFORE, THEY START FROM A YOU KNOW, DOLLARS WHEN THEY'RE CERTIFYING OUR FREE CASH STARTS FROM A
POINT OF OUR AVAILABLE FUND BALANCE AND LOOKS AT OUR BALANCE SHEET LOOKS AT ANY YOU KNOW, RECEIVABLES LIABILITIES THAT WE HAVE IF WE'RE ABLE TO
KIND OF, YOU KNOW, CURE THOSE RECEIVABLES THAT HELPS BOOST OUR FREE CASH AS WELL. SO IT'S IT'S A LITTLE BIT OF LIKE INCREASING THE THE BEGINNING FUND BALANCE THAT YOU'RE STARTING WITH. BUT ALSO IT'S A BIT OF A
BALANCE SHEET EXERCISE. SO BETWEEN THOSE TWO THINGS THAT CAN IMPACT YOUR FREE CASH LEVELS. AND ONE MORE QUESTION UH CHAIR AND I HAVE TO ASK THIS GIVEN THAT, YOU KNOW, A LOT OF OUR
BUDGET EACH YEAR IS BASED ON NEW GROWTH AND WE'RE NOT SEEING A LOT OF THAT AND WE TALK ABOUT THE. SURPLUS BEING ABLE TO FILL IN WHAT WE PULL FROM FREE CASH OVER THE LONG RUN.
DO WE HAVE ANY UH, EQUATION LAID OUT OF, YOU KNOW, THE. FORECAST OF NEW GROWTH AND HOW MUCH OVER. REVENUE WE MIGHT BE AND THE OTHER THINGS THAT HAPPEN IN ORDER TO PAY BACK THE.
150 WHAT I'LL CALL THE 110. BECAUSE I KNOW THE FOR THESE ANNUAL. SO TO PAY BACK THE 110 AND HOW LONG LIKE IS THAT DOES THAT HAPPEN IN ONE FISCAL. YEAR LIKE AT THE END OF THE YEAR LIKE WE. >> PUT. 110 BACK OR DOES THAT. COME IN.
IN OVER SEVERAL YEARS? AND IF YOU'RE THINKING HOW MANY MORE HOW. MANY YEARS DO YOU THINK IT WOULD TAKE. AND GIVEN RIGHT NOW WHAT LITTLE GROWTH. WE'RE SEEING AND KNOWING THAT THAT'S GOING TO BE A HIT ON THE BUDGET. THAT WILL IT TAKE.
>> EVEN LONGER. >> TO PUT THIS. 110 BACK? YEAH I MEAN MOST LIKELY YOU'RE GOING TO BUILD THAT BACK OVER TIME. BUT I'M THINKING ABOUT HOW WE ENDED FISCAL YEAR 2023 WITH A
OVERALL BUDGET SURPLUS OF 192 MILLION AND THAT WAS DRIVEN BY INTEREST INCOME. UM, MOSTLY. THAT WASN'T THE FEDERAL THAT WAS IN THE ARPA OR ANYTHING LIKE THAT. THAT WAS. THAT WAS OUR CASH WAS EARNING A LOT MORE MONEY BECAUSE INTEREST
RATES WERE SO HIGH. AND THAT'S REALLY WHAT HAS DRIVEN YOU KNOW, REALLY WHAT DROVE THE SURPLUSES IN 23 AND 24. AND NOW THAT THOSE INTEREST RATES ARE STARTING TO COME DOWN AS A AS A REASON WHY WE'RE SORT
OF PROJECTING THAT THAT REVENUE IS GOING TO START TO MODERATE A BIT. SO I YOU KNOW, I DON'T EXPECT THAT WE'RE GOING TO BE IN A HIGH INTEREST RATE ENVIRONMENT LIKE WE WERE IN 23 AGAIN. BUT YOU CAN YOU KNOW, SOMETHING
COULD HAPPEN WHERE YOU CAN REPLENISH IT IN ONE YEAR BUT IT SEEMS UNLIKELY. SO IT'S PROBABLY A MULTI-YEAR BUILD BACK OF THAT BALANCE. SO I ONLY ASK THAT TO HIGHLIGHT THAT THERE IS RISK OF IF INTEREST RATES ARE LOWERING NEW
GROWTH ISN'T OCCURRING. IT WILL TAKE LONGER TO PAY BACK WHATEVER WE PULLED DOWN. SO WE HAVE TO BE VERY CAREFUL ABOUT WHAT WE PULL DOWN. FOR AND SNOW BEING. A NON-RECURRING AS COUNSELOR CULPEPER. LIKES IT'S A.
RECURRING THING. . UM WE HOPE TO YEAH. YOU SAY IT'S RECURRING, RIGHT? UH, WE HOPE TO UH. WELL LET'S JUST FINGERS CROSSED. >> FOR NO SNOW NEXT YEAR, I GUESS. THANK YOU CHAIR I APPRECIATE. >> IT OKAY. AND I THINK ONE QUESTION
COUNCILOR FITZGERALD I THINK ASKED AND I HAVE SORT OF A ADDITION TO THAT AT LEAST WHAT THE GUIDANCE FROM THE STATE WOULD BE ON THE FUND ON THE BALANCE WHICH I DIDN'T HEAR AN ANSWER AND ALSO MY MY ADD ON TO
THAT IS WHAT IS THE WHAT IF MOODY'S AND THE RATING AGENCIES LOOK AT IS THAT THE SAME NUMBER. YOU KNOW. >> SO I'M NOT SURE UM IF THE DIVISION OF LOCAL SERVICES HAS
A PARTICULAR PERCENTAGE I FEEL LIKE THEY MIGHT SAY I DON'T KNOW WHAT OKAY. >> BUT THERE IS A GUIDE GUIDANCE LIKE GENERAL ACCOUNTING PRINCIPLES OR SOMETHING. UM SO I CAN GO BACK TO THAT. THE CITY MAINTAINS A POLICY
ABOUT OVERALL FUND BALANCE LEVELS AND HOW MUCH FUND BALANCE WE SHOULD HAVE. UM AND THAT'S THAT THAT'S THAT LARGER STARTING NUMBER THAT 1.2 UM BILLION DOLLAR FIGURE.
UM OUR POLICY IS THAT UM THAT NUMBER SHOULD BE UH NO LESS THAN 15% OF EXPENSES. WE'RE CURRENTLY AT ABOUT 24% OF EXPENSES SO WE'RE WELL IN EXCESS OF OUR OWN POLICY.
UM, AND I'M SORRY THE SECOND PART OF YOUR QUESTION WAS ABOUT WHAT THE AGENCIES LOOK AT TODAY. SO THEY THEY TEND TO LOOK AT THAT UM, LARGER UNASSIGNED FUND BALANCE NUMBER. UM, THEY'RE LESS INTERESTED IN
OUR FREE CASH CALCULATION SPECIFICALLY. UM, SO THEY TEND TO FOCUS ON THAT BIGGER 1.2 NUMBER AND EVEN THEN THEY LOOK AT IT DIFFERENTLY. THEY INCLUDE SOME THINGS THEY
EXCLUDE OTHER THINGS. SO IT'S UM BUT THEY'RE FOCUSED ON THAT LARGER NUMBER. >> YEAH AND I'M JUST SAYING SO THEY'RE. LIKE LIKE. WE SAID 15% IS SORT OF THE. YEAH WHERE WE WANT TO BE JUST
TO THE RATING AGENCIES HAVE THE SAME UH. YOU KNOW NUMBER THAT. THEY'RE LOOKING FOR. YES. >> UM SO THEY HAVE SAID TO US MOODY'S SPECIFICALLY THIS YEAR
HAS SAID THAT UM, UH FOR FUND BALANCE FOR A YOU KNOW, SIMILARLY SITUATED TRIPLE-A RATED CITY LIKE OURSELVES THAT WE SHOULD BE I THINK AT LEAST
25% UM OF RESERVES. SO UM AND BASED ON THEIR CALCULATION WE'RE AT 30% UM, SO WE'RE IN EXCESS OF THEIR EXPECTATION OKAY. THANK YOU. OKAY.
SO WE'VE ENJOYED MAY COUNCILORS MURPHY AND FLYNN. UH, COUNCILOR MURPHY, YOU BEAT FLYNN UH, ACROSS THE TAPE THERE. SO, UH, YOU'RE UP NEXT TWO MINUTES. LATE AND HE OPENED THE DOOR FOR ME.
SO THAT'S HOW I GOT IN FIRST. UM. THAT'LL SHOW. >> YEAH. >> SO SORRY. WE WERE UPSTAIRS. ADVOCATING FOR THE COLA. INCREASE FOR OUR RETIREES AND JUST WANTED TO MAKE SURE I CAME.
DOWN AND JUST LISTEN SO I. I KNOW. >> MY COLLEAGUES HAVE ASKED SOME QUESTIONS, DON'T REALLY HAVE ANY SPECIFIC QUESTIONS BUT THANK YOU FOR BEING HERE OKAY. IT'S COUNCIL FLYNN'S TURN. OKAY. >> I'LL GIVE MY TIME TO CULPEPER.
I KNOW WE ALWAYS SPONSOR EXTRA MINUTES. I ONLY USE 30S SO IF YOU NEED TO USE SOME. NO NO CHARISMA DO NOT ENCOURAGE
COUNCILOR CULPEPER COUNCILOR FLYNN. YEAH EIGHT MINUTES. THANK YOU. THANK YOU. >> MR CHAIR. THANK YOU. CHAIR CHAIRMAN TO UM THE CFO ASHLEY FOR BEING HERE. FOR THE FOR THE WORK YOU'RE
DOING. THE ADMINISTRATION HAS CHARACTERIZED THE USE OF FREE CASH AS FISCALLY IRRESPONSIBLE
CHALLENGING YET THE CITY HAS RELIED ON IT UM, IN EACH OF THE LAST THREE YEARS I BELIEVE SO IS THERE A DISTINCTION THAT
WE'RE MAKING SPECIFICALLY WHEN IS THE USE OF FREE CASH RESPONSIBLE VERSUS IRRESPONSIBLE AND HOW SHOULD THE CITY EVALUATE THE ADMINISTRATION'S RECENT USE
OF IT SUCH AS SUCH AS OPEB? UM THANK YOU COUNCILOR. SO UM, I BEFORE YOU JOINED WAS SHARING UM GUIDANCE FROM THE. STATE THE DIVISION OF LOCAL.
SERVICES ON UM THEIR RECOMMENDATION FOR WHEN TO USE FREE CASH AND UM I'LL REPEAT IT. UH, THEY SAY THAT IT IS A NON RECURRING REVENUE SOURCE AND SO FREE CASH SHOULD BE RESTRICTED
TO PAYING FOR ONE TIME EXPENDITURES UM, AND THAT THEY DO NOT RECOMMEND THAT FREE CASH BE BUDGETED FOR ONGOING OPERATIONAL PURPOSES. UM I WAS ALSO UM HAVING A SIMILAR CONVERSATION WITH
COUNCILOR FITZGERALD ABOUT THIS AND THAT EACH YEAR. UM IT IS THE CITY'S LONGSTANDING PRACTICE TO UM, PUT FORWARD AN OPERATING BUDGET THAT.
ASSUMES A USE OF $40 MILLION OF FREE CASH TO PAY FOR, UM, OUR CONTRIBUTION TO OUR RETIREE HEALTH CARE LIABILITY. UM, THAT'S A DISCRETIONARY CHOICE. UM, WE'RE NOT ON A SCHEDULE IN THE SAME WAY THAT WE ARE WITH.
>> OUR. PENSION OBLIGATION. TO FUND THAT LIABILITY. BUT HISTORICALLY WE HAVE MADE THAT, UM, PART OF OUR BUDGET. UM, I DON'T THINK UM IN MY TIME
HERE WE HAVE ACTUALLY. NEEDED TO USE FREE. CASH TO FUND THAT OPEB CONTRIBUTION. THAT MIGHT BE A DIFFERENT CASE THIS YEAR. UM, BUT WE HAVE NOT NEEDED TO USE FREE CASH TO FUND THAT UM
PARTICULAR EXPENSE. WE'VE HAD OTHER REVENUE AVAILABLE TO. COVER IT. >> UM. >> AND THEN JUST. LASTLY I WILL SAY THE LAST TIME THE UM THE ADMINISTRATION AND THE COUNCIL APPROPRIATED FREE CASH WAS JANUARY 2025 FOR THAT
ONE TIME HOUSING ACCELERATOR UM ,APPROPRIATION WAS. >> THAT $100 MILLION, 110 $110 MILLION. OKAY. UM, THE $48 MILLION IS THAT ALL FOR SNOW AND WENT UP MANAGEMENT
OR WILL IT GO UM TO TRANSFER TO COVER UH, YOU KNOW, EXECUTION OF COURTS, POLICE OVERTIME. WHAT IS OUR FINAL SNOW AND WENT TO MANAGEMENT NUMBER FOR FY 26
. WE SPENT 36 MILLION IN FY 2015 WHEN WE HAD 110IN OF SNOW IN THE SECOND COLDEST MONTH IN
BOSTON HISTORY. HOW DID WE SPEND SO MUCH MORE ONE DECADE LATER WITH SO MUCH LESS SNOW? I'M NOT SURE. COUNCIL YEAH WE UH YEAH IT'S UM
TEN YEARS OF OF CHANGES IN LABOR UM COSTS UH PARTICULARLY IN THE CONTRACTOR UH REALM. UM IT'S UH THERE HAS BEEN A CHANGE IN DYNAMIC ON THE AVAILABILITY OF FOR IN
PARTICULARLY IN THE SNOW REMOVAL CATEGORY OF PLACES TO STORE SNOW. UH, IT REQUIRED UM, UH, SORT OF THE EMERGENCY PROCUREMENT OF SNOW MELTING OPERATIONS TO MAKE ROOM FOR THE PROCUREMENT.
SO, UH, WE ALSO HAD THE BENEFIT IN THERE FOR UH 15 OF UH FEMA CLAIM UM, THERE UH, UP ONE OF THE UH WE HAD TWO MAJOR
STORMS UH, THIS WINTER UH THE SECOND OF WHICH WHICH WAS A NAMED STORM UH, THAT UNLOCKED SORT OF UH THERE'S A WHOLE PROCESS WHEREBY THE GOVERNOR PETITIONS TO DECLARE STATE
OF EMERGENCY, UH, GEOGRAPHICALLY THAT WAS MORE ORIENTED TOWARDS SOUTHEASTERN MASSACHUSETTS. SO WHEN THEY FINALLY DID THE CALCULATIONS, SUFFOLK COUNTY DID NOT IS NOT ELIGIBLE FOR FEMA CLAIM THIS YEAR.
SO THAT'S ONE OF THE UH, POINT OF COMPARISONS. BUT UH, IT'S LARGELY UM UH, YOU KNOW, ALSO EVENT SPECIFIC UH UH
VERY COLD SNAP BETWEEN TWO FAIRLY SIGNIFICANT STORMS NO MELTING REQUIRING A LOT MORE REMOVAL. OKAY THANK YOU JIM, WE WERE
GIVEN A TRIPLE-A BOND RATING IN 2014 WHEN WE HAD 7% OF, UH, OPERATING BUDGET AND FREE CASH WERE CURRENTLY AT 30%.
AND EVEN IF WE DRIVE DOWN TO 450 MILLION, WE'LL STILL BE AT 9% OF OUR OPERATING BUDGET AND FREE CASH. I GUESS MY QUESTION IS HOW LONG CAN WE GO AND FREE CASH TO KEEP
A TRIPLE-A BOND RATING? UM. >> THAT'S A GREAT QUESTION. UM, I WAS UH, MENTIONING THAT THE RATING AGENCY IS AS FAR AS WE KNOW ARE NOT NECESSARILY FOCUSED ON OUR FREE CASH
BALANCE THAT'S CERTIFIED BY THE STATE. THEY'RE INTERESTED IN OUR OVERALL AVAILABLE FUND BALANCE, WHICH IS. THAT $1.2 BILLION FIGURE THAT. >> WE'VE MENTIONED BEFORE. UM, AND SO THEY'VE SAID TO US,
UH, MOODY'S IN PARTICULAR THAT SIMILARLY SITUATED TRIPLE-A RATED MUNICIPALITIES SHOULD HAVE AT LEAST UH 25% UM IN. RESERVES. >> UM UH.
AND ACCORDING TO THEIR CALCULATION WHERE IT UH 30% SO WE'RE. WE'RE IN EXCESS OF THEIR UM POLICY BUT IT'S OBVIOUSLY SOMETHING WE LOOK AT REALLY CLOSELY AND EVALUATE UH, AS
WE'RE UM, YOU KNOW, GETTING READY TO BE. RATED AND. >> UH, MAKING THESE TYPES OF, YOU KNOW, SPENDING DECISIONS. THANK YOU. >> I HAVE TWO MORE MINUTES LEFT. UM, DOES THE OVERSPENDING AND
SNOW AND FY 2026 CHANGE THE AMOUNT THAT WE NEED TO SET ASIDE BY LAW FOR SNOW AND WENT TO MANAGEMENT? NO, WE UH WE WE ONE OF THE
PROVISIONS OF UH AND COUNCIL WEBER SORT OF UH READ THE NATIONAL LAW THAT SPEAKS TO THE ABILITY TO AUTOMATICALLY OVERSPEND ONE OF THE THE REQUIREMENTS OF THAT AUTOMATIC
ABILITY TO OVERSPEND IS THAT YOU MAINTAIN THE SAME APPROPRIATION AS THE PRIOR YEAR, UH, AT A MINIMUM. UM, SO UH, WE YOU KNOW, UM,
SNOW APPROPRIATING FOR SNOW IS NOT AN EXACT SCIENCE. WE WE TRY TO UH, LOOK AT A GOOD REASONABLE ESTIMATE OF WHAT WE CAN EXPECT FOR SPENDING UH, THIS YEAR OBVIOUSLY DID NOT,
UH, MEET THE SAME PATTERN THAT WE'VE RECEIVED IN THE LAST, YOU KNOW, UM, 5 OR 6 YEARS. SO, UM, WE I THINK UH, WE'VE WE
SET OF FIVE THE LAST SIX YEARS HAD BEEN UM WITH A SURPLUS SO UM BUT I THINK UM, UH, YOU KNOW ,IT'S IT'S A REASONABLE ESTIMATE TO HAVE FOR FOR COMING
YEAR OF FISCAL REMOVAL COST. OKAY. >> DO WE HAVE ANY REVENUE NUMBERS THROUGH ON MAY 1ST? FOR THE CURRENT FISCAL YEAR. REVENUE NUMBERS? >> I THINK WE. HAVE THEM. >> THROUGH UM. MARCH 31ST. >> OKAY.
>> ARE YOU ABLE TO PROVIDE THOSE? UH WE WE CAN YEAH. WE I THINK WE. >> CAN PROVIDE THEM TO. >> THEM FOR THE CHAIR. AND IF THEY PUBLICLY AVAILABLE . WE YES WE WILL GET THOSE. >> OKAY THEN MAYBE MY FINAL
QUESTION IS OVER THE LAST SEVERAL YEARS EXCLUDING LAST YEAR BUT WHEN THE CITY DOESN'T USE ALL OF THIS SNOW BUDGET
WITH TELL ME WHERE PHYSICALLY THAT MONEY GOES INTO AND HOW MANY HOW MUCH MONEY HAS GONE INTO THAT POT OF MONEY BASED ON LET'S JUST SAY THE LAST FOUR YEARS ARE THE EXCEPTION OF LAST
YEAR. HOW MUCH MONEY DID WE PUT INTO BACK INTO THE CITY UH, CITY COFFERS?
IT UM SO ONE YEAR UH, FY 22 WHICH WAS THAT UH FAIRLY LARGE UM THAT WAS THE WINTER STORM. UH, KEENAN THAT IS IT. BUT SO IF YOU NET THAT OUT I
MEAN WE WERE RETURNING YOU KNOW, UH, 1 OR $2 MILLION EVERY YEAR. UM, OKAY. AND THEN UH, YOU KNOW, FY 22 WE WE SPENT ABOUT $7 MILLION AND
THAT WAS WITH A UM FEMA CLAIM THAT BEFORE THAT WE WERE ELIGIBLE FOR THAT THAT UH FOR OUR CALENDAR YEAR 2022 STORM. OKAY. >> MR CHAIR, MAY I ASK ONE MORE QUESTION? YES. >> OKAY.
UM, MANY MANY OF THE PEOPLE OF MANY OF THE PEOPLE THAT PLOW THE THE SNOW, MOVE THE SNOW, UH, CONTRACTORS OF THE CITY PAYS. HAVE WE PAID ALL THE CONTRACTORS TO DATE?
I BELIEVE STREETS IS GOING THROUGH A PROCESS THERE. IT DID REQUIRE SOME CONTRACTS TO BE AMENDED. SO I THINK THE VAST MAJORITY OF THE CONTRACTORS HAVE BEEN PAID, BUT THERE MAY BE
INSTANCES WHERE THEY HAVE TO LIKE FORMALIZE A CONTRACT CHANGE IN ORDER TO MAKE THOSE FINE. YOU JUST TALK LIKE 1 OR 2 I. FIRST I WOULD DEFER TO STREETS BASED IN THAT ORDER
OF MAGNITUDE YOU KNOW. BUT FOR MILLIONS OF DOLLARS OR FOR. UH I THINK IT'S UH YOU KNOW, WITHIN THE SMALL MILLIONS OF DOLLARS NOT YOU KNOW. WELL THAT'S.
THAT'S A UM AN IMPORTANT POINT INFORMATION THAT I SHOULD KNOW THOUGH. IS IF. >> THERE'S OUTSTANDING BASICALLY OUTSTANDING BILLS THAT WE HAVEN'T PAID YET. UM, WE'RE. WE'VE WE'VE CAPTURED IN THIS
PROJECTION ALL OF THE. ALL OF THAT'S PROJECTED IN. YES YES YES OKAY. UM WELL THROUGH THE CHAIR COULD I GET A LIST OF THE UNPAID
BILLS THAT WE HAVE AND UM WE HAVE A PROCESS IN OKAY. OKAY. >> YES. >> THANK YOU. >> MR CHAIR. IS THAT OKAY? UH, THANKS. A COUPLE QUESTIONS FROM THE CHAIR.
UH, THEN WE CAN GO TO PUBLIC TESTIMONY. IS ANYONE HERE TO GIVE PUBLIC TESTIMONY? OKAY. UM, SO I GUESS JUST IN TERMS OF, UH, THE YEAR TO YEAR STUFF,
IS IT POSSIBLE TO DO A REVOLVING FUND FOR THIS SO LIKE CAN WE CAN SEEMS LIKE WE NEED THE MONEY EVERY 567 YEARS I DON'T YOU KNOW UM HAVE WE
LOOKED INTO THAT? UM YES. AND THIS IS SOMETHING THAT. >> THE MAYOR HAS EXPRESSED INTEREST IN EXPLORING THE POSSIBILITY OF DOING A SNOW RESERVE. UM, SO THERE. ARE MUNICIPALITIES DO HAVE THE
OPTION TO. CREATE. >> YOU KNOW, A SPECIAL PURPOSE STABILIZATION FUND. UM, SO WE ARE EXPLORING KIND OF WHAT IT WOULD WHAT IT WOULD TAKE TO ESTABLISH THAT AND HOW
IT WOULD OPERATE. UM, IT WOULD, YOU KNOW, PROBABLY REQUIRE UM, THE MAYOR AND THE CITY COUNCIL TO MAKE A CHOICE TO APPROPRIATE MONEY INTO IT, A CHOICE TO
APPROPRIATE MONEY OUT OF IT. SO UM, THERE'S SOME KIND OF. PROS AND CONS OF DOING IT THAT WAY. SO WE'RE. IT'S POSSIBLE AND WE'RE EXPLORING IT. OKAY. >> UM, IS THERE STATE
REIMBURSEMENT FOR, UH, LIKE A SNOW EMERGENCY? NO. >> NO OKAY. SO EVERYBODY'S NOT UNLESS THEY YOU KNOW, WE'RE YOU KNOW, JIM TALKED ABOUT THE FEMA WHICH WE'VE GOTTEN IN THE PAST UNLESS THE STATE WERE TO APPROPRIATE
MONEY FOR IT, THERE'S NOT ANY KIND OF RECURRING POT OF UM, FUNDS MADE AVAILABLE. OKAY. >> UH UM LET'S SEE IS INTO COMPARING TO 2015 IS THERE WAS
THERE ANY CHANGE IN THE WAY WE'VE CONTRACTED WHERE THERE MORE CONTRACTORS IS MORE COMPETITIVE IN 2015 WAS. UM WE YEAH IT'S A THREE YEAR CYCLE ON RE PROCUREMENT AND
IT'S IT'S SORT OF PRICED OUT ON THE TYPE OF EQUIPMENT AND HOURLY RATE ON THE. >> TYPE OF SETTLEMENT. UM THAT THAT'S TOOK THE VAST MAJORITY OF THE UH PUBLIC WORKS TENDERS UM SCHOOLS AND PARKS
THAT KNOW EACH POINT HAVE A SLIGHTLY DIFFERENT MODEL BUT PROBABLY SIMILAR IN NATURE. UH, THOSE RATES HAVE OBVIOUSLY GROWN UH OVER OVER TIME SINCE 2015.
UM UH ALSO THE AMOUNT OF CITY WORKFORCE WE BEAT JUST BECAUSE OF UM, CHALLENGING, YOU KNOW, CHALLENGES AND HIRING FOLKS AND CDL LICENSE, UH, LICENSES AND
HAVING THEM UH, OUR UH, INTERNAL WORKFORCE IS NOT EXACTLY THE SAME AS IT WAS IN 2015. UM, TO BE ABLE TO MAN CITY UM GET THOSE UM, SO THE GOAL WOULD
BE TO TRY TO AND THERE IS A STRATEGIC APPROACH OF LIKE UH, STORM RESPONSE TO LIKE. ACTIVATE CITY RESOURCES BEFORE YOU CALL. >> IN CONTRACTORS. BUT I WOULD PREFER THE STREETS ON THAT EXACT APPROACH. OKAY. >> UM AND THEN UH, JUST UH I
THINK NEARLY THE LAST THING FOR ME. SO WE SPENT TIME TALKING ABOUT DEALS AND YOU KNOW, NON-RECURRING VERSUS RECURRING.
SO UM, I I THINK I DIFFER UH, WITH COUNCILOR CULPEPPER ON THE SNOW BEING A RECURRING THING BUT UM. CAN YOU JUST DISTINGUISH
BETWEEN SO USING THE, UH, UM, FREE CASH FOR THE SNOW REMOVAL APPROPRIATION LIKE LOOKING AT THE DLS GUIDANCE DISTINGUISH
BETWEEN SNOW REMOVAL, THE HOUSING ACCELERATOR AND YOUTH JOBS. UH, AND HELP US UNDERSTAND OR HELP ME UNDERSTAND, UH, HOW THAT RULE WOULD APPLY TO EACH OF THOSE OR WHAT YOUR THINKING
IS ON THIS. SURE. >> UM, SO YOU KNOW, AFTER THE COUNSELOR ASKED THE QUESTION I WAS THINKING WELL, YES, WE DO ACKNOWLEDGE THAT SNOW IS A RECURRING EXPENSE WHICH IS WHY WE EVERY YEAR IN OUR BUDGET
BUDGET, YOU KNOW, 22 PLUS MILLION UM, FOR THAT COST. BUT WHAT. IS NOT COMMON IS FOR US TO SPEND. SIGNIFICANTLY MORE THAN THAT UPWARDS OF 70 MILLION. SO IF WE WERE KIND
OF HISTORICALLY SPENDING $70 MILLION ON UH, OUR SNOW REMOVAL WHICH WE ARE NOT UM, THEN I THINK THAT'S THE DIFFERENCE, RIGHT? IT IS IT IS NOT UM AND THE THE
LAST 5 OR 6 YEARS OF DATA SHOW THAT WE'RE, YOU KNOW, MORE OR LESS APPROPRIATELY COVERING. THE RECURRING. COST OF SNOW WITHIN OUR OPERATING BUDGET. AND SO THIS KIND OF ONE TIME
EXTRAORDINARY AMOUNT OVER AND ABOVE THAT WOULD BE. APPROPRIATE USE OF FREE CASH, UH, BECAUSE IT IS TRULY UM EXTRAORDINARY IN ONE TIME IN. NATURE UM THE OTHER.
HOUSING EXCEL HOUSING. ACCELERATOR YOUTH JOBS. YEP. UH ANOTHER EXAMPLE OF A ONE TIME PROGRAM WHERE UM IT IS INTENDED TO BE KIND OF A ONE TIME SEEDING. >> OF A PROGRAM THAT WILL. REVOLVE UM, AND SO THERE'S NO
NEED TO. CONTINUOUSLY REFRESH THAT APPROPRIATION. UM, SO THAT IS AA1 TIME PROGRAM THAT DOES NOT REQUIRE ADDITIONAL RESOURCES. AND THEN THE YOUTH. SCHOOL YEAR JOBS THAT HAS BEEN.
UH. >> PROGRAM THAT HAS BEEN CONTINUOUSLY. FUNDED IN THE CITY'S UH ANNUAL . OPERATING BUDGET FOR THE. LAST COUPLE. >> OF YEARS. UM, AND THERE'S AN ONGOING EXPECTATION THAT THAT, YOU
KNOW, THAT. THOSE RECURRING COSTS WILL CONTINUE TO BE. FUNDED AND UH, SO IF YOU WERE TO FUND THAT WITH A ONE TIME SOURCE THAT SHOULD NOT MATERIALIZE IN THE FOLLOWING YEAR, YOU WOULD.
CREATE A MISMATCH IN THAT EXPENSE AND CREATE A CLIFF, UM, IN THE CITY'S BUDGET. SO UM, THAT. IS UNIQUE. >> AND THAT IT IS A UH THE EXPECTATION IS THAT IT IS A. RECURRING EXPENSE FOR THE CITY . OKAY. >> UM OKAY.
THANK YOU. UH, MERCY. UM. AND IN TERMS OF UH I GUESS WE TALKED A LITTLE BIT ABOUT THE
SNOW MELT YEARS AND UM, I THOUGHT THAT, UH, THAT THERE WAS A DEBATE BETWEEN LIKE BUYING THEM AND HAVING THEM MAYBE SIT AROUND FOR THE LAST 8 OR 9 YEARS UH, AS OPPOSED TO
LEASING THEM LIKE WHAT'S THE HOW HOW DO YOU LIKE IS IT YOU KNOW, IF YOU ADD IN THE CAN YOU DO THE MATH LIKE UM DO WE SAVE MONEY BY LEASING OR DO WE THIS IS. >> A COST.
UH I DON'T HAVE THAT SORT OF COST BENEFIT ANALYSIS BUT IT IS THAT IS THE THE RENT VERSUS BUY UM ANALYSIS THAT YOU YOU DO. YEAH.
BECAUSE I I THINK UM INFREQUENT USE SOMETIMES PROBABLY IS NOT A GOOD SORT OF MAINTENANCE UM MODEL SO YOU KNOW IF HE IS
DIDN'T USE THEM FOR SEVEN YEARS THAT YOU KNOW, THE RELIABILITY OF THEM ACTUALLY BEING WORKABLE UM, YOU MIGHT MIGHT BE CHALLENGED. OKAY. >> UM, OKAY. UH WELL I GUESS LAST QUESTION
SO AFTER YOU I THINK YOU IDENTIFIED IT WAS 150 MILLION THAT'S COMING THAT IS CURRENTLY OR UH, BUDGETED IF WE PASSED THESE APPROPRIATIONS COMING OUT
OF FREE CASH AND NEXT YEAR'S OPIOID, UM, WAS THERE HOW DO YOU ANTICIPATE THAT IMPACTING LIKE THE REVIEW OF OUR RESERVES ? UH, ARE WE GETTING WHAT THE
PERCENTAGES ARE GOING TO BE AND UM, BASED ON OUR REVENUE PROJECTIONS. UM. >> WE WE. HAVEN'T DONE THE CALCULATION OF OUR RESERVES. I THINK WE WOULD WAIT UNTIL YEAR END BECAUSE THERE'S AGAIN
A LOT OF, UM, OTHER INPUTS KIND OF INTO THAT. UM, BUT THAT IS DEFINITELY SOMETHING THAT WE WILL. BE MONITORING AS. >> WE CLOSE. FISCAL YEAR 26 TO GET A SENSE OF WHAT OUR RESERVE BALANCES WILL BE.
UM, AND THEN BE THINKING AHEAD TO NEXT SPRING WHEN WE GO OUT FOR RATINGS KIND OF HOW WE'RE BEING VIEWED. OKAY. >> THANK THANK YOU. WE'VE BEEN JOINED BY MADAM PRESIDENT COUNCILOR BREADON. UM, THE I'M GIVING PEOPLE EIGHT
MINUTES. UH, SO DO YOU DO YOU WANT EIGHT MINUTES TO GATHER YOUR THOUGHTS? HOW ABOUT THIS? WE'RE GOING TO TAKE PUBLIC TESTIMONY AND THEN, UH, IF YOU HAVE ANY QUESTIONS, WE'LL COME TO YOU. OKAY?
WE'VE GOT A, UH AFTER HEARING FROM ABOUT 100 FOLKS, UH, LAST NIGHT, I'M RELIEVED TO SAY THERE'S ONE PERSON ON THE LIST . UH, SO YEAH. MR MAYNARD, UH, YOU DON'T GET
ANY MINUTES. I'M GOING TO GIVE YOU TWO MINUTES. UH, AND WHENEVER YOU'RE READY, INTRODUCE YOURSELF AND THEN I'LL START. >> THE CLOCK. THANK YOU. UH, MY NAME IS GREGORY MAYNARD AND I'M THE CO-FOUNDER AND EXECUTIVE DIRECTOR OF THE BOSTON POLICY INSTITUTE.
SNOW AND POLICE OVER TIME ARE PERENNIAL SOURCES OF OVERSPENDING IN BOSTON'S BUDGET. SO WHY DOES BOSTON HAVE THIS EXTRAORDINARY FY 26 DEFICIT? THE ANSWER IS OVERSPENDING ON
HEALTH INSURANCE. THIS ISN'T BP'S ANALYSIS IN THE LETTER INTRODUCING THE VERY SUPPLEMENTAL APPROPRIATION THAT IS THE SUBJECT OF THIS HEARING, MAYOR WU WROTE, QUOTE, THE
SPIKE IN HEALTH INSURANCE COSTS FOR CITY EMPLOYEES WAS A CURRENT YEAR ISSUE. THAT RAISES THE QUESTION WHY WAS BOSTON'S FY 26 HEALTH INSURANCE SPENDING FORECAST SO
INACCURATE? THIS IS A QUESTION THAT THE CITY HALL OFFICIALS AT THIS HEARING BUDGET DIRECTOR WILLIAMSON AND CFO GRIFFIN BERGER SHOULD BE ABLE TO ANSWER . ACCORDING TO MUNICIPAL HEALTH
CARE EXPERTS, FOR A SELF-INSURED CITY LIKE BOSTON, THE PROCESS TO MAKE THE FOLLOWING YEAR'S HEALTH INSURANCE FORECASTS STARTS IN THE FALL. OUTSIDE VENDORS WORK WITH CITY OFFICIALS TO ANALYZE THE LAST
TWO YEARS OF MEDICAL AND PRESCRIPTION COSTS DATA, THEN ADD THE CURRENT TRENDS. THOSE PROJECTIONS ARE PROVIDED AROUND CHRISTMAS AND THEN NUMBERS ARE PICKED BY FEBRUARY .
THIS WORK IS WELL DOCUMENTED WITH SLIDE DECKS AND MEMOS AND OFTEN INCLUDES PRESENTATIONS TO BODIES LIKE THE PUBLIC EMPLOYEE COMMITTEE. UNFORTUNATELY, EVEN WITH ALL
THAT CAREFUL PREPARATION AND ANALYSIS, FY 26 WASN'T THE ONLY HEALTHCARE SPENDING ESTIMATE THAT WAS WRONG. SOMETHING ALSO WENT WRONG IN FY 27.
THE REASON WE KNOW THAT IS BECAUSE BP'S WAS FORCED TO ADD $16 MILLION TO ITS HEALTH INSURANCE SPENDING ON MARCH 25TH MARCH 25TH FOR THOSE WHO
DON'T KNOW WAS THE DAY THE SCHOOL COMMITTEE VOTED ON THE BP'S FY 27 BUDGET ALMOST TWO MONTHS AFTER BP'S FIRST ISSUED ITS BUDGET ON FEBRUARY 4TH.
THAT LAST MINUTE ADDITION, ESPECIALLY GIVEN THE FY 26 DEFICIT SHOULD BE A FLASHING RED LIGHT FOR THIS COUNCIL. UNFORTUNATELY THIS COUNCIL DOES NOT SEEM TO AGREE THE
COUNCIL DID NOT HOLD AN FY 27 BUDGET HEARING ON EITHER HEALTH INSURANCE COSTS OR THE PEOPLE OPERATIONS CABINET, WHICH OVERSEES THE CITY'S HEALTH INSURANCE PROGRAM AND HAS A
$337 MILLION BUDGET. SOMETHING SEEMS TO BE WRONG WITH BOSTON'S HEALTH CARE SPENDING AND THIS COUNCIL NEEDS TO FIGURE OUT WHAT IT IS. THANK YOU. OKAY, COUNCILOR BREADON.
IT'S GOOD TO SEE YOU BOTH. UM. SORRY FOR MY LITTLE MISS. >> I WAS, UM. IN THE DISTRICT. UM. >> I'M JUST WONDERING THE SNOW, UM, SUPPLEMENTAL REQUEST FOR
SNOW REMOVAL 47 MILLION. UM, DOES THAT MEAN WE WENT OVER OUR BUDGETED AMOUNT OF WHAT WAS 20? WHAT DO WE BUDGET AND THEN IS THAT 47 OVER AND ABOVE WHAT WE BUDGETED?
SO DOES THAT MEAN WE SPENT. 6067 MILLION ON SNOW REMOVAL. YES. AND DO WE HAVE A BREAKDOWN LIKE IS IS ANYONE LOOKING AT THAT LIKE REALLY GETTING INTO THE
WEEDS ON THAT ONE BECAUSE IT SEEMS AND I KNOW IT WAS WHAT WAS IT. 40IN OF SNOW. SOME 50IN OF SNOW AND I THINK THE PROBLEM WAS WE DIDN'T
NOTHING MELTED SO IT STAYED AROUND FOR A LONG TIME. BUT 67 MILLION FOR TWO STORMS SEEMS PRETTY EXCESSIVE. UM ANY THOUGHTS ON THAT? UM YES. SO WE. ARE DEFINITELY UH WORKING VERY,
VERY. CLOSELY WITH STREETS TO UNDERSTAND THE DRIVERS THERE. UM. AND UM IN OUR PRESENTATION EARLIER WE TALKED ABOUT HOW. THOSE TWO MAJOR WINTER STORMS
WERE OF COURSE, YOU KNOW, A HUGE DRIVER YOU MENTIONED NOTHING MELTED. UM, BUT ASIDE FROM THOSE. THERE'S YOU KNOW, 20 OTHER. WINTER WEATHER EVENTS, RIGHT? LIKE LITTLE THINGS, YOU. >> KNOW, FREEZING RAIN. THEY HAVE TO. >> GO. OUT.
AND YOU KNOW, SALT THE ROADS RIGHT? >> SO THERE'S THE BIG STORMS. BUT THEN THERE'S KIND OF THAT THOSE KIND OF DAY TO DAY THINGS THAT ADD UP AS WELL. UM AND I THINK YOU KNOW THE BIG DIFFERENCE THIS WINTER TOO IS IT WAS MUCH COLDER THAN
EXPECTED SO NOTHING WAS MELTING. WE GOT NO ASSIST. FROM THE. YOU KNOW, THE WEATHER. UM SO YES, I THINK THERE'S. UH HUGE OPPORTUNITY GOING INTO NEXT. WINTER TO WORK CLOSELY WITH STREETS.
TO UNDERSTAND. THE DRIVERS THERE AND IT IS. WORK WE INTEND TO DO. OKAY. >> UM AND THEN YOU KNOW, WE UNDERSPENT OUR SNOW BUDGET FOR SEVERAL YEARS IN A ROW WE HAVE
THIS IS THE UNPREDICTABILITY OF CLIMATE CHANGE. UM, WE UNDERSPENT IS IT A WAY THAT UM THE MONEY THAT WE UNDERSPEND? DO WE HAVE A SNOW DAY?
YEAH. DO WE HAVE A SNOW DAY FUND OR HOW DO WE MANAGE THE UNPREDICTABILITY OF IT? WE DON'T. >> UM BUT IT. >> IS. SOMETHING UNDER STATE LAW, UM, A MUNICIPALITY CAN CREATE A SPECIAL PURPOSE STABILIZATION. FUND AND THAT'S.
SOMETHING THAT THE MAYOR HAS, UH, TALKED ABOUT. AND SO. JIM'S TEAM, UH, AND MYSELF ARE EXPLORING WHAT IT WOULD TAKE TO CREATE ONE UM, HOW WE WOULD ADMINISTER IT HOW MANY WOULD GO
IN HOW MANY COULD COME OUT. SO IT'S, UH, A POSSIBILITY THAT WE ARE EXPLORING. UM. >> I KNOW WE'RE GOING TO TALK ABOUT THE BP'S SUPPLEMENTAL THIS AFTERNOON. THAT'S CORRECT.
UM, AND THEN I'M JUST CURIOUS ABOUT IN TERMS OF THE BREAKDOWN OF THE COSTS FOR SNOW REMOVAL, HOW MUCH OF IT IS UM, YOU KNOW, CITY LABOR VERSUS CONTRACT OR CONTRACTED SERVICES.
IS IT. >> A BREAKDOWN ON THAT? YES. >> AND I THINK WE'VE UM. AND I'M SORRY. NO. >> IT'S OKAY. UM, WE I THINK IT MIGHT HAVE BEEN COUNCILOR CULPEPER ASKED FOR A SIMILAR BREAKDOWN AND SO WE, UM, COMMITTED TO.
FINDING THAT EXCELLENT. AND, UM, DID ANY WAS THERE SORT OF UM, UH, ANY VENDORS INCREASE THEIR UH, COST OR THEIR CHARGES
IF YOU WENT ABOVE A CERTAIN AMOUNT OF SNOW, WAS THERE WAS THERE ANY ANY SORT. >> OF UM YES. COUNCIL IT'S LARGELY THE BIGGEST CONTRACT IS AN HOURLY RATE PLUS SOME TYPE OF EQUIPMENT. SO IF YOU CHANGE IT SPEED ON A
THREE YEAR CYCLE. SO UH 425 WAS A CONTRACT YEAR CHANGE AND THE STREETS DID SAY THE RATES FOR THOSE UH SIMILAR PIECES OF EQUIPMENT WENT UP SIGNIFICANTLY WITH THE CONTRACT CHANGE.
SO UH ALL DIFFERENT IS DIFFERENT RATES FOR TYPE OF EQUIPMENT FROM A. SMALLER TRUCK. TO A TEN WHEELER REMOVAL EQUIPMENT, FRONT END LOADERS ALL OF THAT HAVE DIFFERENT PRICE POINTS.
DO WE HAVE ANY LESSONS TO LEARN FROM OTHER PLACES LIKE I KNOW MONTREAL GETS A LOT MORE SNOW THAN WE DO. IT'S A LOT COLDER. I'VE BEEN THERE IN APRIL. IT'S FREEZE YOU FREEZE TO DEATH. BUT UM DO WE HAVE ANY LESSONS
LEARNED FROM OTHER PLACES THAT OBVIOUSLY COULD BE PLACES LIKE BUFFALO OR MONTREAL OR PLACES TO GET MORE SNOW? I THINK IT'S THAT IN ORDER TO INVEST IN EQUIPMENT THAT YOU
WOULD ONLY USE EVERY FIVE YEARS IS PROBABLY NOT THE BEST INVESTMENT. BUT ANY THOUGHTS ON THAT? YEAH, IT'S A GOOD QUESTION. >> I THINK YOU KNOW JIM AND I MIGHT. DEFER TO THE STREETS CABINET AND THE TEAM THAT ACTUALLY DOES THE. OPERATIONS ON. >> THAT, BUT IT'S CERTAINLY
SOMETHING WE CAN TALK ABOUT WITH THEM AND UM, BRING BACK TO THIS BODY. AND UM AND THE LETTER FROM THE ADMINISTRATION UH, IT WAS DESCRIBED AS A ONE TIME COST UH ,AN EXTRAORDINARY ONE TIME
COST. UH, WHAT IS IT IS IT ACTUALLY EXTRAORDINARY LIKE IS IT EXTRAORDINARY MAYBE SOMETHING THAT HAPPENS ONCE IN 20 YEARS. BUT YOU KNOW, I DON'T KNOW THE
UNPREDICTABILITY OF CLIMATE IS IS REALLY A CHALLENGE BUT UM, DO WE HAVE WHAT SORT OF UNDERSTANDING DO WE HAVE OF OF AN EXTRAORDINARY ONE TIME COST? YES. >> I MEAN IF YOU LOOK AT.
OUR UM, SNOW EXPENDITURES OVER THE LAST YOU. KNOW, TWO. YOU KNOW, FIVE, TEN. YEARS UM, THIS. >> IS. DEFINITELY AN OUTLIER YEAR. UM, JIM WAS MENTIONING EARLIER
UM, YOU KNOW, WE TYPICALLY RETURN, YOU KNOW, 1 TO 2, YOU KNOW, WITH THE EXCEPTION OF, YOU KNOW, UH, FY 22, WHICH WAS A MAJOR WINTER STORM AS WELL. UM, WE'RE TYPICALLY RETURNING 1
TO 2 MILLION. >> A YEAR. UM. >> THIS LEFT OVER THEM. YES, EXACTLY. SO, UM, THAT'S KIND OF BEEN OUR RECENT EXPERIENCE. SO THIS, YOU KNOW, RELATIVE TO THOSE YEARS. >> IS. EXTRAORDINARY TO.
HAVE, UM, SUCH A HIGH EXPENSE. UM, AND YOU KNOW, AND IT'S NOT OUR EXPECTATION THAT THAT. CONTINUES BUT. >> SHOULD THAT BE OUR YOU KNOW. UH. >> REALITY WILL OBVIOUSLY ALL HAVE TO WORK TOGETHER TO ADJUST THE AMOUNT GOING FORWARD BUT HOPEFULLY THAT IS NOT THE CASE. >> WE HAVE.
A VERY UNPREDICTABLE REALITY THESE BUSINESS. UM UM I'M JUST IN TERMS OF UM SUPPLEMENTAL I KNOW WE HAVE TO DRAW FROM UH, FREE CASH TO
BALANCE THE BUDGET AT THE END OF THE YEAR. UM, AND THEN IT'S LIKE A ONE OFF. WHAT ARE WE DOING TO MAKE SURE THAT WE DON'T HAVE TO DRAW? UM, PULL ON SUPPLEMENTALS UM,
AGAIN NEXT YEAR? YEAH. UM, I THINK THIS, YOU. >> KNOW, CONVERSATION ABOUT. REVENUE FORECASTING IS PART OF IT AS WELL. UM, YOU. >> KNOW, I THINK.
WE HAVE UM. FOR 27 YOU KNOW, REALLY WE'RE THOUGHTFUL ABOUT OUR REVENUE FORECAST TO MAKE SURE IT WAS. SUFFICIENTLY YOU KNOW, THERE WERE SUFFICIENT REVENUE TO BALANCE BUDGET BUT ALSO, YOU
KNOW, CONSERVATIVE ENOUGH SO THAT WE HAVE SOME FLEXIBILITY. >> TO ABSORB, UM. ANY EXTRAORDINARY. EVENTS LIKE THIS? I MEAN, OF COURSE LIKE, YOU KNOW, THERE'S GOING TO BE THINGS THAT YOU JUST CAN'T FORESEE, RIGHT? SO WE WE. WE WANT TO MAKE SURE THAT. >> WE'RE.
BEING THOUGHTFUL IN OUR REVENUE. PROJECTIONS SUCH THAT WE HAVE SOME. FLEXIBILITY TO ABSORB THIS. UM, AND WE THINK WE'VE STRUCK THAT RIGHT BALANCE. BUT YOU KNOW, WE'LL SEE WHAT THE NEXT YEAR BRINGS.
AND WE'RE REALLY FORTUNATE THAT WE'VE UM HAD MANY GOOD YEARS AND WE'VE BEEN ABLE TO. BUILD RESERVES SO THAT WE'RE IN A. POSITION TO BE ABLE TO. DO THIS. MANY MUNICIPALITIES IN MASSACHUSETTS. IS A MUCH. MORE DIRE CHOICE.
UM, THEIR RESERVE LEVELS OR FREE CASH LEVELS ARE RUNNING REALLY LOW. SO UM, WE'RE FORTUNATE THAT WE'RE IN A GOOD PLACE TO BE ABLE TO DEAL WITH THIS UM, IN THIS YEAR. IN A SITUATION WHERE WE HAVE EXTRAORDINARY WEATHER EVENTS
LIKE THIS LIKE A NO FURTHER SOUTH AND TAUNTON AND SOUTH. SHORE GOT HAMMERED LIKE THEY GOT 50IN OF SNOW. IN ONE STORM. UM, THE DOES THE STATE HAVE ANY
ANY HELP FOR MUNICIPALITIES IN THOSE. SORT OF CIRCUMSTANCES? NOTHING NORMAL AND RECURRING. UM, YOU KNOW, THEY COULD MAKE A CHOICE TO APPROPRIATE FUNDS IN THEIR. BUDGET TO COVER THESE COSTS BUT THERE'S NO LIKE RECURRING
PROGRAM. UM, SOMETIMES THERE'S FEMA. REIMBURSEMENT AVAILABLE AND. SOME OF THOSE SOUTH COAST TOWNS . WERE ELIGIBLE FOR FEMA REIMBURSEMENT FOR. >> THE UM, FEBRUARY SNOWSTORM BUT WE UNFORTUNATELY MISSED.
THE RATE OF. ACCUMULATION BY LIKE AN INCH OR SO. YOU KNOW, WE WERE JUST. SHY UM, AND SO. >> WE. WEREN'T ABLE. >> TO DRAW DOWN ANY FEMA REIMBURSEMENT FOR UM, ANY OF THE. STORMS THIS YEAR. OKAY. >> THANK YOU. >> OKAY. >> UH THANK YOU, COUNCILOR FLYNN, IF YOU HAVE SOME FOLLOW UP.
SO JUST YOU KNOW, FOR THE RECORD, UH, UM, ANYONE WATCHING ONLINE WE DID HOLD A PRE-BUDGET HEARING ON HEALTH CARE SPENDING WITH, UH, CHIEF CRAWFORD BERGER.
I THINK, MR CHAIR, MY SINCERE AS WELL AS ALEX LAWRENCE TO TALK ABOUT HEALTH CARE SPENDING . UH, AND UH, GENERALLY WE DON'T HOLD A HEARING JUST WITH HUMAN
SERVICES IN OUR BUDGET PROCESS BECAUSE THEY'RE YOU KNOW, THEY THEY'RE BUDGETED PAYS FOR THE HEALTH INSURANCE AND THEY'RE BASICALLY PAYING THE PAYROLL OF ALL THE DEPARTMENTS THAT WERE COMING BEFORE US.
SO UM, JUST IF ANYONE WANTS TO KNOW WHAT OUR THOUGHT PROCESS ON THAT WAS, CAN YOU JUST CLARIFY BEFORE WE GET TO COUNCILOR FLYNN? SO I KNOW THERE WAS SOME NEGOTIATIONS WITH THE PAC ABOUT GLP ONE SOME THINGS DO WE HAVE
TO REVISIT THAT UH, GOING INTO NEXT YEAR? WHAT'S THE PLAN? YES. >> SO WE ARE. UM IN. THE MIDDLE OF A. SEVEN YEAR CONTRACT, UM, FOR HEALTH UH, PLANS WITH OUR
PUBLIC EMPLOYEE UNIONS. UM, AND WE'RE IN THE PROCESS OF NEGOTIATING THAT A SUCCESSOR THE NEXT SUCCESSOR OR FIVE YEAR SUCCESSOR AGREEMENT UM, WHICH WILL GO INTO PLACE UH FOR FY
28. SO WE ARE IN THE PROCESS OF UM THAT NEGOTIATION NOW WITH OUR UH, UNION. PARTNERS AND UM, IT'S YOU KNOW, THOSE TYPES OF ISSUES ARE ON THE.
TABLE I GUESS MY I THOUGHT THE SELLING HAD BEEN NEGOTIATED WITH LIKE UTILIZATION MANAGEMENT. IS THAT IN EFFECT IS THAT. RIGHT THAT IS. >> IN EFFECT WILL GO. THROUGH TO FISCAL YEAR 27. YES I MEAN EVERYTHING YOU KNOW WE WE'RE NEGOTIATING THE
SUCCESSOR CONTRACT SO I GUESS ANYTHING CAN CHANGE IN THAT IN THAT NEXT CONTRACT. BUT WE WERE ABLE TO WORK WITH UM THE UNIONS TO ESSENTIALLY REOPEN THE CONTRACT THAT WE'RE IN CURRENTLY TO PROVIDE FOR
THAT UTILIZATION MANAGEMENT WHICH YIELDED SAVINGS. >> YEAH. OKAY. THANK YOU VERY MUCH, COUNCILOR FLYNN. UH, FOUR MINUTES. YEAH. ACTUALLY THE NEGOTIATION WITH THE UNIONS ON THAT ISSUE. WHO WAS THE LEAD.
POINT PERSON FOR THE CITY? UM, IT'S. >> A. GROUP OF US. UM, IT'S, UH, SHARED UM. NEGOTIATION WITH THE FINANCE CABINET, UM, AND THE PEOPLE OPERATIONS CABINET AND CLOSE
COLLABORATION WITH UM, UH, THE LABOR RELATIONS A. LITTLE MANDARIN. UM, RENEE. OH, IS NO PART OF THAT? UM. >> HE'S PART OF THE TEAM. BUT YEAH. >> IT'S A IT'S A LARGE. >> GROUP BETWEEN FINANCE AND PEOPLE OFTEN.
UM, I ASKED A QUESTION. I DON'T THINK I RECEIVED THE ANSWERS AT THAT HEARING YOU MENTIONED ABOUT HEALTH HEALTH CARE FOR CITY EMPLOYEES, THE MONTH TO MONTH SPENDING IN FY
26. UM, ARE YOU GOING TO PROVIDE THAT TO ME? THAT'S THE. INFORMATION I REQUEST TO SEE HOW MUCH IT INCREASED EACH MONTH. YEAH.
>> I'M UH IF YOU I CAN PULL UP I. THINK WE WE DID GET YOUR. UM, REQUEST. COUNCILOR FLYNN I, UH, BELIEVE . >> WE RESPONDED. >> BUT I'M I'M HAPPY TO PULL IT UP. OKAY. >> UM, WELL. SO HOW MUCH.
>> SHOULD WE SPEND ON HEALTH INSURANCE FOR CITY EMPLOYEES IN FY 26? FOR 26?
>> TO HEALTH INSURANCE? THE, UH FY 26 APPROPRIATION IS 250 MILLION UH $307,372.
IS THAT INCLUDING BP'S. UH UH UH ACTUALLY BP'S BUDGETS UH, FOR THEIR OWN HEALTH INSURANCE. >> WELL, THE UM ADD THAT IN GENERAL HOW MUCH IS HOW MUCH SHOULD BE. UH. >> I DON'T HAVE HEALTH INSURANCE FALLS ALMOST I CAN
SEE RIGHT UNDER. AND THEN AND THEN PART OF THAT JIM HOW MUCH SHOULD BE OVERSPEND? I I THINK THAT CAUGHT US OFF
GUARD. RIGHT. UM THE THE WEIGHT LOSS DRUG. UM BUT IF WE IF WE WERE LOOKING AT THE MONTH TO MONTH SPENDING
CLOSELY WE WOULD HAVE NOTICED THE PRICE UM INCREASE GOING UP SIGNIFICANTLY. IS THAT IS THAT ACCURATE? YES. >> SO UH DPS IS THAT'S LIKE 26
UH, HEALTH INSURANCE BUDGET WAS $134 MILLION. OKAY. >> AND PART OF THE SUPPLEMENTAL THAT YOU'LL BE DISCUSSING THIS AFTERNOON, UH, HELPS COVER THE FULL VERSION FOR THAT ACCOUNT.
BUT WERE YOU WERE YOU LOOKING AT EACH MONTH AND SEEING HOW IT WENT UP SO YOU KNEW RIGHT AWAY THAT IT WAS GOING UP RIGHT? I THINK IT'S UM FOR SCHOOLS
THEY ACTUALLY DO THEIR THEIR OWN PROJECTION AND THEIR PAYROLLS ARE NOT NECESSARILY AS EVEN AS AS A CITY DEPARTMENT YOU'RE IN THE SUMMER PAYROLLS
AND THE LIKE BUT UH THROUGH THE FALL THEY WERE IDENTIFYING UM A HEALTH INSURANCE EXPOSURE AND IT SORT OF CAME TO LIGHT UM, YOU KNOW, AS AS WE APPROACHED EARLY DECEMBER.
IMMEDIATELY. >> UH, THAT THERE WAS GOING TO BE A PROBLEM. OKAY. >> YOU KNOW, IT WAS PART OF THAT LARGER UM. UH. >> SHORTFALL WHERE THEY ENACTED SPENDING CONTROLS IN NOVEMBER TO DECEMBER. OKAY. >> UM.
BUT YOU'RE ABLE TO GET ME THAT MONTH TO MONTH SPENDING. YES. >> I DO REMEMBER THERE WAS SOME, UM, REPORTS WE MIGHT HAVE ALREADY DONE IT, SO. OKAY. >> UM. >> SORRY. >> I BELIEVE WE GOT THE MONTH
TO MONTH SPENDING. OKAY. >> AND IT WAS, UH, SHARED WITH YOUR OFFICE. UM, JUST WHEN WHEN WE RECEIVED IT. UH. I'M STILL WAITING. >> FOR THAT TO COME THROUGH. OKAY. >> UM. AND AND DO YOU HAVE ANY FOLLOW
UPS? YEAH. >> WASN'T THERE WASN'T THERE AN OPPORTUNITY MAYBE FOR AND THIS IS SOMETHING I RECOMMENDED BUT HAVING BP'S, UM, COORDINATE AND
STAY STAY WITH THE CITY OF BOSTON AS PART OF SOME OF THE STREAMLINING PROCESS OF UM, HEALTH INSURANCE. SO WE'RE ALL KIND OF UNDER THE
SAME SYSTEM. UM, THAT MIGHT SAVE MONEY. I KNOW THAT'S SOMETHING THE TEACHERS UNION WOULDN'T LIKELY SUPPORT. I THINK IT'S SEEMS LIKELY THE MAYOR'S OFFICE WOULD SUPPORT
SOMETHING I RECOMMENDED. ISN'T THAT AN OPPORTUNITY FOR US TO SAVE MONEY? UM. >> SO THE WAY WE. BUDGET FOR. >> HEALTH INSURANCE EACH YEAR, UM, AND WE YOU KNOW, BETWEEN THE CITY AND IT'S REALLY. FORMULAIC WHERE WE.
UM, TAKE HOW MANY EXPECTED, YOU KNOW, MEMBERS WE HAVE AND THEN THE YOU KNOW, EXPECTED RATE AND SO. IT'S IT'S REALLY. THERE'S NO. IT'S NOT. >> NECESSARILY ANY ECONOMIES OF SCALE. >> TO. BE GAINED BY COMBINING THEM
BECAUSE THEY ARE SORT OF CREATED AS ONE. WE'RE ALL UNDER THE SAME AGREEMENT. UM. ,WE. JUST PUT YOU KNOW, THE BUDGET FOR HEALTH INSURANCE IN THAT OVERALL BP'S BUDGET.
SO FROM. WHAT WE CAN TELL ON THE FINANCE SIDE THERE'S REALLY NO UM, ECONOMIES OF SCALE. TO BE. >> GAINED BY COMBINING THEM ALL ON THE CITY SIDE. UM, BECAUSE WE. >> YOU KNOW, WE WE GIVE THAT. BUDGET TO BP'S BASED ON THE
FORMULA OF OF WHAT WE EXPECT. EACH YEAR. THAT'S THAT'S NOT. SOMETHING I SUPPORT. I WANT US TO COMBINE THEM. I THINK IT DOES SAVE THE. CITY UH, MONEY IF WE PUT IT ALL
UNDER ONE UMBRELLA INSTEAD OF INSTEAD OF UM, DOING TWO SEPARATE SEPARATE UM. SYSTEMS. UM, I THINK THE TEACHERS UNION
THAT'S ALWAYS BEEN SUPPORTIVE OF THE MAYOR'S SUPPORT AND I THOUGHT THE MAYOR SUPPORTS IT AS WELL. UM, BUT YOU'RE SAYING WE CAN'T GET THAT DONE? IT'S NOT THAT WE. >> CAN'T GET IT DONE. I'M JUST SAYING THAT I DON'T UH FROM WHAT.
WE'VE BEEN ABLE TO LOOK AT, THERE'S REALLY NO SAVINGS TO BE GAINED BY COMBINING THEM BECAUSE THEY ARE CURRENTLY THE SAME SYSTEM. WE JUST. SPLIT THE. APPROPRIATION INTO TWO PLACES. SO THERE'S NOT TWO. SYSTEMS. >> THERE'S NOT TWO DIFFERENT
YOU KNOW, HEALTH PLANS THAT YOU KNOW PEOPLE ARE BEING MANAGED UNDER. IT'S REALLY JUST TAKING A CENTRAL APPROPRIATION BUDGETING IT ACROSS TWO LOCATIONS. AND THEN MY MY FINAL QUESTION I
WAS DOWNSTAIRS UM TESTIFYING IN SUPPORT OF UH SALARY CITY RETIREES AND ADVOCATING FOR A LITTLE BIT OF DIGNITY AND JUSTICE FOR RETIREES.
THEY'RE NOT MAKING A LOT IN THEIR PENSION. THEY WORK HARD. UM THEY'RE NOT THEY'RE NOT GETTING WEALTHY. THEY'RE STRUGGLING TO MAKE ENDS MEET. IS IS THE CITY GOING TO SUPPORT
THEM IN THEIR ADVOCACY FOR A COLA? UM, A COLA INCREASE OF 3% AND ALSO THE THE EXTRA SUPPORT THAT THEY'RE REQUESTING AS WELL. UM. >> SO WE WILL REVIEW THE
REQUEST. BUT WHAT I WILL. SHARE IS THAT AS IT RELATES TO THE. COLA BASE, I THINK THE ASK HAS BEEN TO INCREASE IT BY. $3,000 I BELIEVE SO YEAH.
UM AND SO THE UH IMPACT OF THAT WOULD BE A $90. >> MILLION INCREASE. TO THE UNFUNDED LIABILITY. IN THE PENSION SYSTEM. UM, AND SHOULD WE CHOOSE TO TRY IT IF WE WERE GOING TO TRY AND
STAY ON OUR SCHEDULE OF BEING FULLY FUNDED BY 2028, IT WOULD REQUIRE A SIGNIFICANT INCREASE IN THE CITY'S OPERATING BUDGET TO FUND. THAT DID. >> AT. THE. END OF THE.
CITY UM 2028 WASN'T IT UM DIDN'T THEY READJUST THAT RECENTLY? NO. >> NO, THE FUNDING SCHEDULE. >> IS. STILL TO BE FUNDED BY 2028. >> BUT DIDN'T THE MAYOR'S SUPPORT, UM SUPPORT THE COLA BASE AND THE COLA INCREASE?
THAT'S WHAT THE RETIREES TOLD ME THAT THEY THEY GOT A COMMITMENT FROM THE MAYOR THAT THE MAYOR WOULD SUPPORT THEM AND AND THE CITY ADMINISTRATION NOW IS DOESN'T SEEM LIKE
THEY'RE IN SUPPORT OF IT. MAYBE I HAVE THAT WRONG BUT IS THAT IS THAT A FAIR ANALYSIS OF IT? I'M NOT. SURE ABOUT. >> WHAT YOU KNOW, THE MAYOR HAS SAID TO THE. RETIREES DIRECTLY UM, BUT I
KNOW THAT WE HAVE. SUPPORTED THE COLA INCREASE OVER THE LAST 3% 3% AND IN FACT. I THINK IT WAS. >> IN. 2023 WE VOLUNTARILY INCREASED IT BY 5%.
SO WE WENT ABOVE AND BEYOND UM IN 20 I THINK IT WAS 2023 AND HAVE SUPPORTED THE THE 3% COLA IN OTHER YEARS BUT THE. COLA BASE. UM GIVEN AGAIN THE SIGNIFICANT
INCREASE TO THAT YOU KNOW SPEAKING AS A CFO UM SIGNIFICANT INCREASE TO THE UNFUNDED LIABILITY AND THE VERY LIMITED WINDOW BY WHICH WE WOULD HAVE TO ACTUALLY FUND THAT UNFUNDED NEW UNFUNDED.
LIABILITY, IT WOULD. MEAN, YOU KNOW, A $45 MILLION INCREASE IN THE OPERATING BUDGET FOR FY 27 AND 28 IN ORDER TO MEET OUR. >> SKIES RIGHT NOW I UNDERSTAND THAT I'M ASKING FOR A LITTLE
BIT OF DIGNITY FOR, UM, CITY RETIREES. I'VE I'VE SEEN THEM UH, THEY'VE BEEN IN THE CITY THEY'VE BEEN WORKING SINCE THE 1970S. UM, THEY WEREN'T GETTING PAID
MUCH BACK THEN AND THEY WERE PLOWING OUR STREETS. THEY WERE EDUCATING OUR CHILDREN, PUTTING OUT FIRES, HELPING THE ELDERLY AND, UH, THEY DIDN'T HAVE BIG SALARIES. I LOOK AT THEM NOW AND THEY'RE
BARELY MAKING ENDS MEET. UM, IN THIS CITY, THE HIGH COST OF HOUSING, THE HIGH THE THE HIGH COST OF FOOD THEY THEY'RE TELLING ME THAT THEY'RE THEY'RE BARELY MAKING IT AND MANY
OF THEM THAT OWN THEIR OWN HOMES, UM, ARE STRUGGLING TO PAY THEIR UM TAX BILL AS WELL. I'M JUST ASKING FOR A LITTLE BIT OF CONSIDERATION FOR THEM. I'M NOT ASKING FOR THEM TO BE WEALTHY.
I'M JUST ASKING FOR DIGNITY IN RETIREMENT. BUT, UM, I GUESS THAT'S A CONVERSATION FOR ANOTHER DAY. THANK YOU, MR CHAIR. OKAY. >> THANK YOU. SO JUST LOOKING AT THE, UH, INFORMATION REQUESTS FROM THE,
UH, THE HEALTH CARE HEARING, UH, I THE REQUEST WE HAVE DOWN FOR YOU AND FOR THERE WAS NO MONTH TO MONTH. IT WAS YEAR OVER YEAR SPENDING . NO, MY MIND WAS MINE WAS MONTH TO MONTH. I'M JUST.
SO BASED ON UH OUR OUR OUR QUESTION TO THEM FOR ON YOUR BEHALF WAS WAS YEAR TO YEAR. >> NO WE HAVE NOT WE CAN GET. WE CAN WE CAN GET BUT MR. >> CHAIR THAT'S INACCURATE I I. SPECIFICALLY ASKED MONTH TO
MONTH OKAY WELL THAT'S IF IT'S MONTH TO MONTH THAT'S HOW YOU WILL KNOW IF IF THE COST IS GOING UP SIGNIFICANTLY YEAR TO YEAR IT'S TOO LATE THEN NOW YOU NEED TO LOOK AT ONE MONTH AND
THE NEXT MONTH AND SEE HOW MUCH THE PERCENT INCREASED OR DECREASED AND THAT'S HOW YOU FACTOR THINGS IN UH BUT I SPECIFICALLY ASKED MONTH TO MONTH. OKAY. UM UH WE WILL GET THE MONTH TO MONTH. THAT'S A. >> BIG DIFFERENCE MONTH TO
MONTH AND YEAR. >> TO YEAR I AGREE I SO UH. YOU KNOW, I JUST I JUST WANT TO BE I JUST WANT TO BE ON THE RECORD THAT I SPECIFICALLY ASKED FOR THAT NIGHT AND I'M STILL WAITING, MR CHAIR.
OKAY, WELL, THEY RESPONDED TO OUR REQUEST FOR YEAR TO YEAR AND WE GOT THAT. INTENTION. >> BUT THAT'S NOT WHAT I ASKED MR J. UH, YES. IF I I APOLOGIZE FOR THE
MISCOMMUNICATION. UH, WE WILL GET THE MONTH TO MONTH UH, DATA. UH, OKAY. UH, COUNSELOR BREADON, DO YOU HAVE A PHONE? UM. >> I'M JUST CURIOUS ABOUT THE THE HEALTH CARE BUDGET FOR, UM
. I'M UNABLE TO SAY IT WAS. 134,000,030 134. AND IS TECHNICALLY IT'S IT'S LIKE A SPLIT.
IT'S IT'S THE SAME PROGRAM AS THE AS WE HAVE UH, AND IT'S SPLIT INTO TWO PIECES. SO BRINGING THAT INTO THE CITY TO PUT IT ALL IN ONE BUCKET
WOULD MEAN THAT YOU WOULD YOU WOULD YOU WOULD TAKE THAT $134 MILLION OUT OF THE BUDGET AND IT WOULD WOULDN'T REALLY IT WOULDN'T REALLY MOVE THE NUMBERS UM, BECAUSE YOU'D HAVE
TO TAKE THE MONEY OUT OF THE BP'S BUDGET. CORRECT? YEAH. >> OKAY. >> THAT'S GOOD. THANK YOU. OKAY. >> UH, THANK YOU VERY MUCH IF THAT'S THAT'S ALL. UH, COUNCILOR FLYNN UH, YEAH. UH, OKAY.
WELL, I JUST WANT TO SAY THANK YOU VERY MUCH. UH UM, AND UH, FOR ALL THIS INFORMATION AND UH, WE'LL, UH, PROCESS IT AND, UH, BRING THIS UP, I GUESS MY MY QUESTION IS
WHEN DOES THIS HAVE TO BE APPROVED UH, TO. PREVENT FURTHER, UM, HARM? UM. >> UH, BY THE END OF THE FISCAL. YEAR, UM. JUNE 30TH. >> OKAY. >> OKAY. WELL, THANK YOU VERY MUCH.
UH, THIS MORNING'S HEARING AND I LOOK FORWARD TO SEEING MY COLLEAGUES THIS AFTERNOON FOR THIS MORNING'S HEARING IS NOW ADJOURNED. YOU. >>