WEBVTT METADATA Video-Count: 1 Video-1: youtube.com/watch?v=3l8wTY2nvjk NOTE MEETING SECTIONS: Part 1 (Video ID: 3l8wTY2nvjk): - 00:09:12: Meeting Introduction: Financial Situation and School Contribution Changes - 00:10:51: City Budget Process and Free Cash Explanation - 00:24:59: Councilor Questions: New Growth, Budget, and Future Outlook - 00:25:20: Councilor Comments: Balancing School Needs with Growth - 00:27:52: Councilor Comments: Future Funding Without New Growth? - 00:30:48: Councilor Comments: Investment in Schools, Hard Choices - 00:33:12: Councilor Comments: City's Financial Limitations and Future - 00:35:52: Councilor Comments: Long Term Stability and Revenue - 00:39:56: City Manager Comments: Potential Wins and Economic Development - 00:42:58: Councilor Comments: Opportunities for Growth and Community - 00:47:19: Councilor Comments: Holistic Transparency, Community Impact - 00:49:33: Councillor Comments: Financial Strains, Spending Limits - 01:00:46: Councillor Comments: Unrealistic Expectations, Revenue - 01:03:14: Councillor Comments: Managing Money and State Formula Part: 1 1 00:09:12.560 --> 00:09:28.320 turning on my mic. Here we go. So, this is not a regular meeting uh of the city council. So, we will not be starting with the pledge or anything uh around that. Um this is basically just a meeting that we would have normally had um in the conference room. We are having it here uh because we expected that there might be more attendance than 2 00:09:28.320 --> 00:09:45.440 usual. Um, so before we begin, uh, I will have the clerk call the role of the members and then I will lay out what we're going to talk about. >> Council Taylor >> here. >> Councelor Cooper. >> Councelor Jimenez Rivera >> present. >> Councelor Hines. >> Councelor Tenary Garcia 3 00:09:45.440 --> 00:10:02.240 >> present. >> Council Tesh. >> Councelor Kelly Garcia >> present. >> Councilor Santigette >> present. >> Councelor De Jesus >> present. >> Councelor Brown is running late. And councelor Robinson >> here. >> Eight members present. You have a quorum, Mr. President. Thank you, Mr. Clerk. So, we are here to discuss the 4 00:10:02.240 --> 00:10:18.560 kind of financial uh situation from the city side as it relates to the contribution to the Chelsea public schools. Um there has been uh some information uh since the meeting was called around that contribution changing. So, we will be going over some of those changes, discussing the, you 5 00:10:18.560 --> 00:10:34.480 know, impact um for this year, potentially for next year as well on the uh public schools and sorry, and on this and on the city and kind of any other questions that folks have around um this change and kind of how this all works. So, with that, I will start it off by 6 00:10:34.480 --> 00:10:51.200 handing it off to the city manager and to um assistant deputy city manager um to cover the information that we need to discuss. Thank you. >> Thank you very much, um, Council President. Uh, um, so before I start, I 7 00:10:51.200 --> 00:11:07.440 just want us to to to outline kind of the the the process of the budget, right? Uh, uh, as it as it plays out, uh, um, every year and and also uh highlight basically, you know, what uh, what roles are are where basically, 8 00:11:07.440 --> 00:11:25.279 right? So, so, um, we we officially kick off, uh, our budget season in September, and we do that, uh, with with, um, with highlighting, uh, the capital improvement plan, right? And, and what that does is it it it does a a a very 9 00:11:25.279 --> 00:11:40.160 broad view of of the long-term capital needs of of the city. Uh uh we usually have a uh uh a conference with the city council well ahead of that submission. Uh and and we had a uh a community 10 00:11:40.160 --> 00:11:56.320 meeting in December to uh kind of put put the the the cards on the table with the entire community. Um so once once January comes over then things start picking up. uh um we uh gather all the 11 00:11:56.320 --> 00:12:10.560 information on the CIP and submit it to the city council uh um by the end of January. And I'm highlight I'm highlighting the CIP because the the CIP is is one of our biggest free cash 12 00:12:10.560 --> 00:12:27.600 users right of uh in the budget. Um this this budget uh uh we are going to be using $8 million of free cash uh uh in order to fund the CIP. Uh and that is a good thing. It is a good thing because uh uh when you are borrowing for for a a 13 00:12:27.600 --> 00:12:43.519 home right now, I'm sure you are reading up online that uh interest rates are really really high. Right. So so Chelsea having the ability to to pay for uh a large portion of our expenses with cash 14 00:12:43.519 --> 00:12:59.360 is really really important. Right. Uh uh Chelsea has uh um a very manageable amount of debt. uh particularly compared to uh our neighbors and that is also important because uh um paying things with cash 15 00:12:59.360 --> 00:13:15.519 upfront uh um means that we we are not tied to very big payments in the future right so uh I am highlighting this because the uh there's a lot of talk about our free cash position but uh um uh I'll share uh towards the end of my 16 00:13:15.519 --> 00:13:32.800 remarks uh um the the natural fluctuation of free cash in the city of Chelsea. So, uh uh the CIP was indeed submitted to the city council at the end of January. The city council has had a several meetings now. Uh and you have a 17 00:13:32.800 --> 00:13:50.160 public hearing on the CIP tonight and we are hoping that you vote on the on the CA on the CIP also tonight. The capital improvement plan includes all projects for the city and the school all combined together, right? uh uh into one plan. Um 18 00:13:50.160 --> 00:14:05.839 the next step uh is is for the school department to file their their um their operating budget uh and submit it to the city manager and that is due on April 1st, right? uh uh and and the the the 19 00:14:05.839 --> 00:14:23.519 school committee is a governing body uh of of of of I guess uh uh dictating how the school budget is is is made up, right? So so we don't have the ability to intervene uh a and and and uh and say 20 00:14:23.519 --> 00:14:39.839 how the school budget is is is is appropriated. It is not something that is allowed by law and it is certainly not something that is allowed uh by charter and it works that it works that same way in in all cities and towns in 21 00:14:39.839 --> 00:14:55.040 Massachusetts. Right. So the school committee uh uh essentially submits the the the budget uh by April 1st to the city manager. Uh and the city manager then has 30 days to to turn around and 22 00:14:55.040 --> 00:15:10.560 submit a a combined budget for the entire city which includes the schools. Uh when we submit that budget to the city council which is due on May 1st, it includes a a a single line item of of school expenses. Right. 23 00:15:10.560 --> 00:15:27.440 uh it doesn't go into details on on how much for transportation is is included or or anything like that, right? We vote on the budget on on a single line item. Um so we submit the the the budget to the city council uh and we submit it on 24 00:15:27.440 --> 00:15:43.920 May 1st and the city council then has 45 days to act on the budget by charter. And this is the same in all cities and towns in Massachusetts. the city council uh uh cannot add into that budget, right? So, so the the the city council 25 00:15:43.920 --> 00:16:00.720 can reduce any one item or or or line, but the city council does not have the option to add uh into that budget. So, so it's really important for us to to to follow the process uh and and essentially have, you know, all these 26 00:16:00.720 --> 00:16:18.959 checkpoints uh uh follow the process. We knew that this budget year was going to be a very very difficult year, right? Uh um so so we went ahead u Paul and I uh and and we concluded our our budget on on the city side extremely early and we 27 00:16:18.959 --> 00:16:37.440 sent you a a a preliminary budget which is pretty much our our city budget. uh um uh we sent it to you at the last meeting, I believe, where we where we outline uh a a few of the highlights of our budget, right? Um the the usually 28 00:16:37.440 --> 00:16:54.880 when we do a budget, it starts with uh uh with taking a look at revenues, right? So, so we we uh essentially match our expenses with our revenues. uh a and what you are reading online is what is happening here in Chelsea. Our revenues 29 00:16:54.880 --> 00:17:12.079 are not doing well. We are as of January, at the end of of January, we are $2 million behind when it comes to to uh uh local receipts. So, it it is the portion that is not made up of uh of local taxes. We know that that I if if 30 00:17:12.079 --> 00:17:26.720 folks are having a hard time with with water bills, with electric bills, with with everything, I know they're going to have a hard time with their tax bill. So, we we we uh uh expect uh uh receipts also in in in local tax revenue to be 31 00:17:26.720 --> 00:17:45.760 down. I uh the entire uh um entire meeting that I had in December was focused on one topic and that was new growth, right? So, so uh uh the majority of our budget And it's the same way for for uh for most cities and towns is made up of 32 00:17:45.760 --> 00:18:03.440 local taxes, right? And that local tax uh is is um is governed by Proposition 2 and a half. Uh um the only exception to Proposition 2 and a half is new growth. And and this year was the lowest new growth that we've had in 10 years. 33 00:18:03.440 --> 00:18:20.480 Right. So So we we uh uh we are hurting all around. Uh um and and we are pulling every lever we can including uh rewriting zoning, including uh uh uh the new marketing campaign that was approved by the city council in order to increase 34 00:18:20.480 --> 00:18:38.960 our our our new growth. Right? So So when we look at revenue, obviously uh it's not a pretty picture. Our new growth is is uh uh is the lowest that has been in 10 years. And we also see uh um a lot of growth when it comes to big 35 00:18:38.960 --> 00:18:54.320 ticket items, right? We in the letter that we submitted to the city council, we note that that uh in FY27, we are going to pay for the for the full cost of the Wakefield school. Uh that is is is an addition of $2 million. $2 million 36 00:18:54.320 --> 00:19:12.320 per year uh compared to what what uh uh that school cost in FY22, right? uh uh our health insurance cost uh is going up by 12%. And that applies to all employees. So on on the city side and on the on the school side and and it is a number that is is really really hard to 37 00:19:12.320 --> 00:19:30.400 carry. So uh um the budget that we put in front of of the city council essentially uh uh um adds uh less than 1% on on non-discretionary expenses. Uh and I highlighted to the city council that all of that 1% is related to the 38 00:19:30.400 --> 00:19:48.000 addition of engine 4, which is something that we committed to in 2024, uh as a way to respond to the 24 fires that we had in in Chelsea that year. So uh uh um however we we uh uh even in this picture 39 00:19:48.000 --> 00:20:05.600 of of a very dire situation when it comes to revenue, we knew that that we had to tap into as much as possible from this this pot of free cash. And uh uh ahead of this meeting, I submitted a chart uh to the city council and I will 40 00:20:05.600 --> 00:20:21.440 have I will be having a budget uh meeting for the community on Wednesday where I will share essentially the the uh um the uh the chart of free cash uses. Yes, we do have $33 million in 41 00:20:21.440 --> 00:20:38.400 free cash. That is true. That is something that we have been building for the last five years. uh uh in FY22 out of the pandemic, the free cash number was $9 million, sorry, was $14 million, right? And we have been steadily uh uh 42 00:20:38.400 --> 00:20:54.559 um building up that reserve, right? Uh uh a and and being as wise as possible uh with with uh um with our free cash usage. Free cash is made up of two items. one is uh is revenue that is 43 00:20:54.559 --> 00:21:12.559 above projections and this year I I I am not expecting any any revenues to be a big windfall uh and expenses that are falling under under budgeted right and and with with gas going up with all all of our expenses going up essentially 44 00:21:12.559 --> 00:21:28.559 what I'm trying to tell you is that free cash generation I is not going to be the same in FY27 as it has been in the last uh uh in the last few years. With that said, we we we always plan for free cash 45 00:21:28.559 --> 00:21:44.640 usage every year, right? And a and we want to start at at a certain time at at a certain point and end at at a certain point. Last year in FY25, we started at a similar number, at a similar number, and we ended up at $10 million in free 46 00:21:44.640 --> 00:22:01.280 cash. That included uh uh uh um uh moving some money to our general stabilization account. It included funding our CIP and it included uh uh um supporting our our operating budget. 47 00:22:01.280 --> 00:22:17.120 Right. So this year in FY26, we we are planning a very similar usage. So, what that means is that uh uh the CIP that is before the council right now is going to use $8 million of that 48 00:22:17.120 --> 00:22:33.520 free cash. Uh uh the city council has already moved uh uh some funds to our general stabilization account. Uh which is a a a very good move. uh and and we expect to increase our usage of free 49 00:22:33.520 --> 00:22:50.480 cash to uh supplement this year's budget by $4 million. That number uh uh is is is not small uh and it is not something that we think is is a good practice but it is something that we are going to do 50 00:22:50.480 --> 00:23:07.600 this year uh uh in order to to uh walk into the situation with eyes wide open uh and do as much as we can. So what we are doing is is uh uh is taking some of the of the free cash funds uh a and we 51 00:23:07.600 --> 00:23:22.400 uh um have shared with uh our superintendent um that we are increasing the contribution from the the city to the schools by an additional $2 million. Uh the other letter that I submitted to 52 00:23:22.400 --> 00:23:38.799 to uh um to uh our city council is essentially a picture uh of net school spending, right? And and of course we would want to uh um support our schools as much as as as we could, right? As 53 00:23:38.799 --> 00:23:55.280 much as we can. We we uh um we know that that uh we do not have enough resources for for uh Chelsea public schools. Uh there is is is uh one figure that is thrown around uh uh when you compare 54 00:23:55.280 --> 00:24:13.039 districts and and that figure is net school uh net school spending. Uh with this additional uh $2 million we project that in FY27 our net school net school spending will be uh uh just under 107%. 55 00:24:13.039 --> 00:24:27.279 Right? So so that is is again I think is is a good move. I think it's something that I hope the council supports when the budget uh uh is before you. But I I I am approaching this with a lot of of 56 00:24:27.279 --> 00:24:43.440 of caution and and uh a recognition that that we need to make changes uh on on uh on our economic development front in order to really recharge that new growth that is not happening at the moment. So 57 00:24:43.440 --> 00:24:59.440 I'll stop there. uh uh uh and we're here to answer any questions from the city council. >> Thank you, Mr. Manager. And just to clarify for folks that have just joined, this is a subcommittee meeting. So there is no public comment portion that will happen at the next meeting. So just just 58 00:24:59.440 --> 00:25:20.880 so folks know, um I want to open it up to counselors for any questions or thoughts that people have. Um I guess I will stop there and open it up for any questions. or or comments comments or questions. I will anything. Go ahead, Councelor 59 00:25:20.880 --> 00:25:36.480 Sneaggate. Thank you very much. Um, as I was thinking about this, I realized that I was um at a really very interesting intersection having been a teacher, an administrator, and now a city counselor. And I know this is a very difficult 60 00:25:36.480 --> 00:25:52.960 position to be in on all fronts. So, I just wanted to say that I was happy that you were able to do what you've done for the school department, but it does seem to come with the caveat that unless 61 00:25:52.960 --> 00:26:09.919 things change with us for new growth, etc. almost that this is a one-time deal. If I understand uh to sort of uh summarize what I think I heard you say that you can do it, we can do it now but we other things need to change for us to 62 00:26:09.919 --> 00:26:27.600 continue to do net spending 7%. is that >> absolutely. I mean uh um we have been on this bandwagon of of of new growth for a little bit and um what what we are trying 63 00:26:27.600 --> 00:26:43.760 to get our residents to understand is that uh um uh in local government it's all about trade-offs, right? It's all about trade-offs. Uh and um Chelsea does not have an an limited supply, right, of uh 64 00:26:43.760 --> 00:27:00.240 uh of funds. And and we also hear that um that there are pressures on all sides on on on the state on on on local employers, right? On on uh on all sides. So, so we need to do whatever we can do 65 00:27:00.240 --> 00:27:18.960 in order to to uh uh um um affect change at a at a local level in order to be able to fund the things that we want to fund. This conversation is about Chelsea Public Schools. Last year, uh in FY26, 66 00:27:18.960 --> 00:27:35.440 we had $1 million of new growth, right? Two years ago, we had $3 million of of new growth. we would not have needed to touch free cash if we had had the new growth last year that we had in in FY23, 67 00:27:35.440 --> 00:27:52.000 right? So, so I I I urge the city council, I urge the residents, I urge everyone to to please uh um you know, say yes to growth and say yes to development. >> Thank you, councelor, and thank you, Mr. Manager. any uh councelor Robinson uh 68 00:27:52.000 --> 00:28:07.039 and then councelor Brown after councelor Brown your mic is on. >> Are we just kicking the can down the road? I say that in regards to we just had to come up with another two million for the schools since 2023 69 00:28:07.039 --> 00:28:22.960 we gave 854,000 287 20 U 25 we gave them seven over 7 million 2026 we gave 8 million and now we're giving them 10 million and as we 70 00:28:22.960 --> 00:28:40.399 say without new growth we're going to be to my knowledge we're going to be in the same place next year to be able to come up with more money for the school if we don't have any new development or anything. How we going to match that? Are we going to be looking to 71 00:28:40.399 --> 00:28:57.679 lay off people on the city side as we see the school budget is much larger when the what the city budget is? >> Those are a very good question, counselor. Uh um I don't have answers to those questions. Uh um I I I I am walking into this conversation eyes wide 72 00:28:57.679 --> 00:29:11.919 open uh and and I've had a lot of conversations with with the counselors knowing that that that is a risk, right? That is a risk. Uh uh um certainly um there are things that we are doing on 73 00:29:11.919 --> 00:29:28.880 our end on expenses uh uh to manage you know uh uh uh manage costs on our end. Um so we we'll continue doing that. Um but but unless if if things continue the way they are tracking right now, we are 74 00:29:28.880 --> 00:29:45.760 going to be in the same boat, right? I I am hopeful hopeful that that things change. I I am hopeful that we are are able to execute on the zoning changes that are before this council. uh uh whether it's it's the 40R that is before this council uh in Prattville, whether 75 00:29:45.760 --> 00:30:02.000 it's it's uh uh the the development uh uh in in uh in West Chelsea or or Market Basket at the Plaza uh or or or just uh um whether it's it's every project that is before is before the the the boards, 76 00:30:02.000 --> 00:30:17.600 right? I mean, it is it is absolutely uh um imperative to change the course that we're in. Thank you, Mr. Manager. And I'd just like to just quick follow up um just on that point. I think it it's important uh as you were mentioning, right, for 77 00:30:17.600 --> 00:30:33.679 people to understand that we I think most of the council, right, Chelsea public schools, the school committee, we heard everybody loud and clear. I know many of us were at the at the school committee meeting the other night. People want us to invest in our schools, but unless we bring that growth, we won't be able to sustain this. And I 78 00:30:33.679 --> 00:30:48.720 think it's really important that we make that connection because we hear you. It's important for us to invest in our schools, but also without growth, we can't. So I Yeah. Uh, councelor recuper sorry, I had councelor Brown first. >> Thank councelor Taylor. >> Thank you, Mr. President. Again, 79 00:30:48.720 --> 00:31:04.159 apologize for being late. I called in. Um, so I want to thank the city manager for your efforts. Um most of us all of if not all of us we've had those conversations with you and a lot of the folks understand that you know our reflection is what we have in front of 80 00:31:04.159 --> 00:31:18.799 us today and we're trying to deal with this today but we also have to as city councilors we have to be aware of what's coming tomorrow. So um most of us up here understand that and we've heard that in your conversation today. If we 81 00:31:18.799 --> 00:31:34.640 do this, when we do this today, if it's going to be a perpetual motion, then we're looking at some bad days. If you didn't get that, we're looking at some bad days in the um next year to follow. You know, it could be layoff, it could be um a lot of other things on projects 82 00:31:34.640 --> 00:31:52.480 gone. We must continue to um realize that we are making a great investment in the city of Chelsea, in particular our education where we've invested all u money in the new um vote uh tech school metro. So that's taken a big hunk of 83 00:31:52.480 --> 00:32:08.240 cash out of our budget this year and hopefully we'll be able to sustain next year and be able to do um what we trying to get done with our education here. um everyone around the state and particularly cities um that have the 84 00:32:08.240 --> 00:32:26.640 sanctuary statue um flag on them are being hit hard on um funding and stuff. But I appreciate the city manager taking time to speak with the ways and means chair and the senate uh and also the speaker of the house on behalf of Chelsea Education here. Uh but we we 85 00:32:26.640 --> 00:32:41.600 can't just throw this under the rug. This is a hard bite here. We're biting it today, but you know, future come, tomorrow come, we have to take the realization if we don't get on get the wheel rolling in the right direction for 86 00:32:41.600 --> 00:32:58.080 our for our city, um not only will the school department be in some kind of dire situation, but um our city too. So, um I just want to really commend you for the work. I know it's been a tough call. I know it's been really a lot of phone calls between city councils trying to, 87 00:32:58.080 --> 00:33:12.960 you know, um, get more money, but you were able to get what you got and we appreciate your reference and I said that to you earlier, so I wanted to say it to to you publicly also. Thank you. >> Thank you, councelor, councelor Rupo Taylor and then to Jesus. 88 00:33:12.960 --> 00:33:29.120 >> Thank you. Um, damn much I'm going to say, but I'm going to tell you how it is. This is how it's going to be. We can stand up here and tell you all these things. The city doesn't have as much money as people think it has. So eventually it's going to come to one thing. We all want the children to go to 89 00:33:29.120 --> 00:33:46.000 school. The city does so much work. It it gives everybody everything. So eventually you're going to have to choose between schools, nonprofits, and whatever it is in this city that we need. This is the pro that's going to happen. They don't they're not going I'm going to tell you eventually it's going 90 00:33:46.000 --> 00:34:02.559 to they're going to come everybody that the city gives money to is going to ask for money. When the city can't give it to you, what are you going to do? Who do you choose? Here's the point that a lot of people don't get. The city can only choose certain things that it can do. They can't say, "Well, are we going to 91 00:34:02.559 --> 00:34:17.119 fund the school and we're going to fund you?" It's going to be one or the other or a little in one or a little in another. You can ask that to the city manager. You can ask that to the financial officer. That's the way it's going to be. So, this is the way we all 92 00:34:17.119 --> 00:34:32.159 got to understand. And here's something else. This city needs to grow. If it doesn't grow, the money doesn't grow on trees. So if the money doesn't grow on trees and the people can't live here, what's the point of your schools, your children, because the parents will leave. The children can't go to school 93 00:34:32.159 --> 00:34:48.639 if then they cannot live here. Remember, the parents have to live here for the children to go to school. If the parents can't afford because the city's raising so high that it would gentrify EVEN FASTER. SO WHAT IS THE POINT of the children going to school when the parents can't live here? So it has to be 94 00:34:48.639 --> 00:35:06.000 AN OPEN THING. HOW does this work? Do we want the parents to live here or the children go to school? It's a big dilemma, but it's a choice that the city manager and us have to make. It's a hard choice. It's not an easy choice to make. But like I tell you again, it's going to 95 00:35:06.000 --> 00:35:21.280 be a choice. Either do the parents live here and the kids go to school or the parents leave and the kids go with them. So what do you want to do? Like if you pay attention to what the city manager is telling you is this city needs to grow. If it doesn't grow, it doesn't have any money. So you could come up 96 00:35:21.280 --> 00:35:38.400 HERE AND SPEND ALL THE TIME YOU WANT. NONE OF US are against teachers. None of us are against teaching children. The children is the future for all of us. So we all want that. But you can't get blood out of a stone if the stone can't do it. Like the old saying says, you can't squeeze and get if there's nothing 97 00:35:38.400 --> 00:35:52.880 to get. >> Thank you, councelor. >> That's it. >> Uh Mike, please. Uh councelor Taylor. Uh so I want to thank the city manager and the deputy city manager for looking 98 00:35:52.880 --> 00:36:10.240 at this problem and uh coming up with at least a a solution um for this year. I just wanted to say I have long been a voice crying in the wilderness that this 99 00:36:10.240 --> 00:36:25.520 city had better be careful because we are going to uh corner ourselves into a bad economic position. I have long advocated among my colleagues that we have to look at the city's finances like 100 00:36:25.520 --> 00:36:42.560 an economic engine. And the the thing is is that for that to happen, we need to have a balanced community. We have to have balanced uh uh finances. We cannot overspend in one 101 00:36:42.560 --> 00:36:58.160 area or put everything into one area because it neglects it. You we've we've essentially killed off up till now our ability to make money and and 102 00:36:58.160 --> 00:37:12.480 Like the counselor said, money doesn't grow on trees and our new growth um number is is is bad. We have a we have an economic downturn where there's not a lot of 103 00:37:12.480 --> 00:37:28.800 construction going on and uh we were, you know, we made the we made the decision to sue the federal government and so we have a lot less money coming in from the federal government. Our finances are in 104 00:37:28.800 --> 00:37:46.000 jeopardy. When I was elected, I told the voters, "My main objective is to ensure the long-term financial stability of this city." Some of us have lived here since we were 105 00:37:46.000 --> 00:38:02.640 in receiverhip. That's when I moved here. And I've seen the progression. Chelsea's come a long way, but now that people like were used to, you know, having, you 106 00:38:02.640 --> 00:38:18.800 know, lots of goodies from the federal government, like we got $30 million worth of ARPA money, you know, there was plenty of money to go around and everybody was, you know, this is the time that we got to pay for it now. None of that, all that stuff is 107 00:38:18.800 --> 00:38:35.680 gone. Um, and we need to take the steps necessary in order to generate more revenue for the city so that we actually can fund things that are needed in the 108 00:38:35.680 --> 00:38:52.240 city. So, so I I I beg of all my colleagues to to take this into consideration that that if we don't have an economic engine in Chelsea, none of the stuff that any of you guys want is 109 00:38:52.240 --> 00:39:08.560 is going to be possible. So, you we we got to make sure that the city can increase our revenues in order to give everybody the goodies they want. and and you know we have to be 110 00:39:08.560 --> 00:39:23.839 financially responsible in order to do this. I'm all for this particular uh addition I suppose. um you know it's a kind of a catastrophic uh drop in in 111 00:39:23.839 --> 00:39:40.240 in students and you know we have to we have to make sure that our schools uh are sound but this this everybody has to realize we are in a 112 00:39:40.240 --> 00:39:56.320 different situation than we have been in over the last several years. This is a fact that has nothing to do with politics, has nothing to do with ideology, has nothing to do with anything except except economics. 113 00:39:56.320 --> 00:40:12.720 So I I just want everybody here and whoever's watching on on television to understand that. And if anybody has a question, you can you feel free to reach out to the city manager. You can reach out to me, have a discussion about this. 114 00:40:12.720 --> 00:40:31.280 I have been talking about this for years. So, I I just I just wanted to to to say thank you to you guys and I'm glad that you guys get it. No, and I wanted to add that that um you know, while while um 115 00:40:31.280 --> 00:40:47.359 while the picture is is dark, right, that um I also know that that it only takes one win in order to start uh uh a momentum, right? And and I know that I speak to uh councelor Robinson on a 116 00:40:47.359 --> 00:41:02.400 regular a regular basis about this win, right? Uh what is the win that we're going to get, right? And and and unfortunately recently we haven't had a lot of wins, right? Uh a lot of the wins that that are proposed uh uh have evaporated uh and have become losses. 117 00:41:02.400 --> 00:41:18.079 But but I I I am hopeful that that uh uh we we can have one win. uh uh if if if in fact the Connecticut Suns can can uh can can uh uh have a a big investment here in Chelsea, right? That that that 118 00:41:18.079 --> 00:41:34.800 win on on its own creates creates uh uh momentum, right? From a housing standpoint, we we we see what what is happening uh in in our neighboring communities. We see what what is you know what what growth can do to to 119 00:41:34.800 --> 00:41:51.040 support our local budget, right? our local budgets. Uh the city of Everett is getting 25 million million dollars a year from the casino, right? Uh uh uh and and they negotiated a a very good deal on on the stadium, right? I mean, 120 00:41:51.040 --> 00:42:07.920 these are the kind of deals that that are game changers, right, in Chelsea. And these these this is really um the focus of of what we are doing now. we are are focusing on on uh uh on on on the deals uh and and and on building 121 00:42:07.920 --> 00:42:24.800 momentum uh from an an economic development standpoint in in in terms of uh uh re refueling that growth. So so again a market basket and and the re redevelopment of that plaza it could be 122 00:42:24.800 --> 00:42:41.520 one of those wins. It could be one of those wins and I urge uh uh uh I urge everyone to to support it. The the uh the redevelopment uh uh in in Prattville could be one of those wins, right? Uh uh um we just have to be be chasing uh uh 123 00:42:41.520 --> 00:42:58.480 absolutely every win and realize that that our livelihood, our our legacy, our ability to fund our budgets are tied to these winds. Thank you, councelor and uh city manager 124 00:42:58.480 --> 00:43:14.079 councelor de Jesus and then councelor Kelly Garcia. >> Thank you Mr. President. Uh first and foremost um thank you city manager um and deputy city manager for working on this. Really appreciate you guys working on this around the clock. Um and thank 125 00:43:14.079 --> 00:43:31.280 you to everyone who is in the chamber right now. Like we have a full house and I don't see this so much as a threat. I see this as opportunity for us to hear from you, right? Um it's an opportunity for you guys to guide us because as much as we work on this side to crunch 126 00:43:31.280 --> 00:43:46.480 numbers and and look for opportunities for growth and and all of that, we also need to be guided by the people in our community. So, thank you all for being here this evening. Um I want to echo the city manager's words um the long uh work 127 00:43:46.480 --> 00:44:03.280 of my fellow counselor here, um Robinson in my district. I'm looking forward to seeing these wins. Also, whether it's in Forbes, whether it's in that um upcoming uh proposal for Flat Iron, um these are the opportunities we need to drive um our our economy here in Chelsea. But I 128 00:44:03.280 --> 00:44:19.440 also want to acknowledge that this is this is going to be a tough year. It's going to be a tough few years. And I I don't want to just pour money into things. I want to take us back to the conversation we've been having on the council about being mindful of how the 129 00:44:19.440 --> 00:44:34.480 money is being used. Um, and I don't want to overstep because I am in full support that and and agreement that the school committee has its own entity. They should be running their budget. That is their show. That is their arena 130 00:44:34.480 --> 00:44:52.160 to control. Um, but I think that when we get feedback and and right now they're the ones on the hot seat, but in a few weeks we're going to be on the hot seat as I hope we also get community members here to guide us and give us advice as to where they would like the money to be spent. But I think that, you know, we 131 00:44:52.160 --> 00:45:09.200 have a lot of great areas um with our school committee, with our our superintendent. Um I mean when I think about the amazing programs that even like our our um Aaron Jennings has been coming up with like we are we have some amazing amazing faculty and and administrators that have been doing 132 00:45:09.200 --> 00:45:24.319 great work but we also heard a lot of concerns from teachers and students and parents um in the last week and I don't want to disregard that in lie of the fact that we are able to pour money into the system. I want to make sure that as 133 00:45:24.319 --> 00:45:41.440 we look to invest this new funding, we continue to listen to the voices in the room and see how we can still make sure that we have social workers that don't have a case load of 500 students. Right? And I'm I'm speaking this very respectfully because I am not in the schools. I don't have the advantages of 134 00:45:41.440 --> 00:45:56.960 of some of my fellow counselors who have had um many t a lot of time in schools and are more familiar. But I'm speaking this from what I heard simply in last week's uh Chelsea High meeting. And I want to find a way where we can have these conversations without emotions and 135 00:45:56.960 --> 00:46:13.920 with just facts of how we can potentially pivot or or be strategic and and move some pieces around. I I I genuinely hope that um the comments and the feedback and and and the presence of our community is taken as an opportunity 136 00:46:13.920 --> 00:46:30.400 for us to grow together and get out of the situation that we're in. I think that we all saw this coming. I think we are a sanctuary city that is rich in culture and and strong to its values. I don't take back the the lawsuit that we did earlier in the year. I think we 137 00:46:30.400 --> 00:46:46.720 stood with our people in Chelsea and and I just think that as the same way we did that at the beginning of the year, we're going to continue to fight together, find ways to continue to um support our families regardless of where they're from. Support our faculty, our administration, 138 00:46:46.720 --> 00:47:02.079 and work together. Um but yes, I I agree. We need to be creative. Um, I'm looking forward to specifically in my district, Flat Iron and and and um, you know, whatever Green Roots and and TND and the city has cooking with um, 139 00:47:02.079 --> 00:47:19.359 Forbite. I'm all for it, but we need to make sure the community is guiding this and that they're in the front forefront. Thank you. >> Thank you, councelor Councelor Garcia. >> Uh, good evening everyone. We have a full room. Um, first and foremost, thank you, city manager, deputy city manager 140 00:47:19.359 --> 00:47:35.599 for providing a a transparent overview and really like a simplistic, holistic vision of how much we're giving to our schools. Um, and I can honestly stand here in front of my community and share that 141 00:47:35.599 --> 00:47:51.760 both bodies, city council and school committee want nothing but the best for our students. I can firmly say that it is in the how and where that money goes that you know we are working alongside 142 00:47:51.760 --> 00:48:07.680 lines of differences to your point counselor de Jesus and uh and you know I'm I've held several hats in the past. I served as I was a teacher for 10 years uh on the school board for 10 or for 143 00:48:07.680 --> 00:48:25.200 eight. And when I first started my my commitment to the school committee, we had very few layoffs and then it was years of no layoffs and we celebrated and Katherine, you know, you know, there are a lot of folks uh in the audience 144 00:48:25.200 --> 00:48:42.400 that would come up to the podium and speak for so many years. Um, and my heart is broken now because we have to make really difficult decisions and and I want to thank every single person 145 00:48:42.400 --> 00:48:58.800 in this audience and all the ones who are watching at home who couldn't make it today. all of the folks who came and spoke last week, I want you to know that we we hear you, we see you, and we will try our best um to figure this out 146 00:48:58.800 --> 00:49:15.920 together. And uh a part of me wants to be hopeful, but it's we have to make really difficult decisions. And uh and I thank you for pushing us. I thank you for um you know, being the voice of reason and being on the grounds, right? 147 00:49:15.920 --> 00:49:33.200 and uh and I ask that you continue to do so and um yeah stay tuned for for more. Thank you. >> Thank you counselor. Any other counselors like to speak? Right. I just have a I have a quick comment and then a 148 00:49:33.200 --> 00:49:51.440 question. So I think these shortfalls and this is kind of financial strains, right? It's not just Chelsea as you mentioned. They're happening everywhere and I think um they're happening in cities that have also not sued the federal government. So I think it's important to keep in mind right that this is not just a situation around that 149 00:49:51.440 --> 00:50:08.800 and that also politics defines the rules of the playing field. The rule the things that we do impact us the things that the state does impact us. The things that the federal government does impact us right so it's political decisions are being made that are that are laying the playing field and that's 150 00:50:08.800 --> 00:50:24.160 why we're here. And I think it's important that we keep that in mind as well that even though we all have, you know, the best interest in Chelsea, right, different opinions are going to make that different. One thing that I I want to highlight is the net school spending that was uh brought up earlier. 151 00:50:24.160 --> 00:50:41.359 My understanding is that this would bring us to about 107%, right? Which means that we're basically 7% over what's required. That sounds like a lot, but when you actually look at every municipality in Massachusetts, the average is actually 30% over 100. And I 152 00:50:41.359 --> 00:50:58.240 think this is it would be great to be there, right? 30% over even 50% sounds amazing, but as has been mentioned by everybody here and by the city manager, we don't have that kind of money, right? So, it's we don't we're not below because we don't want to be. We're below because we're limited in the resources 153 00:50:58.240 --> 00:51:14.000 that we have. And that is where I want to make sure that we after this whole process is done for this year, we need to have a conversation as a community about where do we want to be? Not next year, not the year after, but where do we want to be in 5 years and 10 years so that we can 154 00:51:14.000 --> 00:51:30.960 be thoughtful about what we want the level of funding for our schools to be and then figure out what it's going to take both from the, you know, what's the dollar amount that it's going to get us there, but also maybe we don't have that money yet. So, we have to figure out how to get to that growth and then use that 155 00:51:30.960 --> 00:51:47.520 as a as another kind of argument for people to make sure that we are continuing to invest in our city so that then we can invest that money back into our schools, into our, you know, housing, into, you know, businesses, all of the things that we need in our community. So, I want to make sure that that we keep that in mind so that we can 156 00:51:47.520 --> 00:52:04.559 have that conversation once we're done with our budget and really lay out what do we want out of Chelsea, right? This is part of the Palante, right, master planning process that we're doing. It's like what do we want out of Chelsea in the next 15 years and the next 20 years? Let's do that for Chelsea public schools as well so that we can be in tandem with 157 00:52:04.559 --> 00:52:19.119 our district and with our school committee and really make sure that the city is committed to the level that the residents of the community want us to be. Um and then the question um you sorry >> I just want to add just uh um 158 00:52:19.119 --> 00:52:35.200 >> two things right the the um the alter alternative is is to request the citizens of the city to tax themselves more right and and and that is something that um uh hasn't happened in a gateway city in a very very very long time. Uh 159 00:52:35.200 --> 00:52:52.480 councelor Sanave reminded me that Chelsea had an override vote in 1990. It failed 1990 or 91 or something like that, but but it failed. I I didn't know that. I didn't know that. And it's not something that that we talk about a lot. Uh um so uh Melrose Melrose uh had the 160 00:52:52.480 --> 00:53:08.800 largest override vote in the history of the Commonwealth at $13 million. Uh uh and and it took two tries basically to to to convince the the the residents to vote for that override. Brooklyn uh is going 161 00:53:08.800 --> 00:53:27.040 to have now the biggest override of $20 million. Uh and that is going to be on on uh on on the ballot at some point in May for Brookline. I I know that we are not Melrose. We are not Brookline. We are not Arlington. Uh and and uh Malden 162 00:53:27.040 --> 00:53:41.599 is is is is the closest example that we have and they are having an override vote on March 31st. We are all watching it very very very closely because it is an impossible decision. It is an 163 00:53:41.599 --> 00:53:58.480 impossible request to uh uh ask uh uh gateway communities to ask um residents to tax themselves on on top of what what what is happening. I I I share these examples because uh uh you know there are towns in in Massachusetts that have 164 00:53:58.480 --> 00:54:14.800 made this trade-off, right? That that that that have said we do not want one development here. we will pay higher taxes in return and that is Brooklyn that is is reading Massachusetts and I worked there it was something that they were proud of right uh uh that is 165 00:54:14.800 --> 00:54:29.920 unfortunately not an option for us in Chelsea so again when we are are are speaking to our residents when we are speaking to uh uh to the community we also have to remind residents of of of of the the trade-offs that we all make 166 00:54:29.920 --> 00:54:46.400 in our organizations in our daily lives in our homes right? Uh uh I want to go to Disney World this year. Right. But but in in this world that is not an investment that I'm going to make this particular year, right? Uh uh um these are the 167 00:54:46.400 --> 00:55:02.640 kinds of things that that we need to translate to our our residents. Of course, we want everything. Of course, but but our role as leaders in municipal government knowing that override is not an option in Chelsea. >> Thank you. So just to my question, can 168 00:55:02.640 --> 00:55:18.240 you differentiate between free cash and the general stabilization fund that you mentioned earlier? I just want to make sure that people understand what's the status of the stabilization fund and what would be the presumably negative impact of tapping into those funds. >> Sure. So, so, so the um there there are 169 00:55:18.240 --> 00:55:34.559 two accounts. Uh uh uh free cash uh historically h has been has been used more as a uh um as an eb and flow as a as as a check-in account maybe is is is a better way to think about it. In Chelsea, we fund uh most of our capital 170 00:55:34.559 --> 00:55:49.520 improvement plan from free cash and that is a good thing. As I shared earlier, we we also fund a lot of the nice to haves, right? out of free cash. The banners that we have on on Broadway, the the uh 171 00:55:49.520 --> 00:56:06.799 um the celebrations that we have, you know, the the the the social programs that that we have, all of those things are are things that we we fund out of free cash. uh uh uh the general uh stabiliz 172 00:56:06.799 --> 00:56:22.960 stabilization account uh is is is more restrictive. In order to in order to have a vote uh uh in order to move money out of the stabilization account, it requires a twothird uh uh majority of the council and it's made that way to 173 00:56:22.960 --> 00:56:38.880 make it very hard to get money out. Right. the the we have when uh when the pandemic happened that that budget year, right, we used uh uh an exorbitant amount of general stabilization fund in 174 00:56:38.880 --> 00:56:55.359 order to balance that budget. I believe it was about $10 million uh uh um uh luckily ARPA uh came along, right? But if ARPA had not come along, right, the the we have not had had a way to 175 00:56:55.359 --> 00:57:12.720 replenish th those funds. ARPA is not coming along now, right? We are not going to have the federal government uh uh uh come and give us uh uh a rainy day fund. So So what we have in our general stabilization account is $23 million at 176 00:57:12.720 --> 00:57:28.559 the moment. uh um that is it is money that that we have been growing uh uh steadily since the the pandemic and and again it that is more of a of a savings account. I will say that that one of the 177 00:57:28.559 --> 00:57:46.480 generators of free cash uh is is uh revenue on interest. Revenue on interest, right? So so right now with in when when interest rates are high, having money on hand generates money for the city. Uh in 2026, I I believe we 178 00:57:46.480 --> 00:58:02.960 made $5 million on on interest, right? And that is I is one of the ways that that free cash is generated, right? So, so, so by spending down all of our monies, we are also spending down the ability to create money. >> Thank you. Uh, so I have councelor 179 00:58:02.960 --> 00:58:19.599 Taylor and then councelor de Jesus. And I'm also just uh just for folks uh we are going to end at 7 unless there is any last burning questions. So I think those two are probably the last two. I'll have you speak after the two of them since you have not spoken and then 180 00:58:19.599 --> 00:58:37.200 I think we'll end on that. I'll actually defer to councelor Tash if he wants to speak first because you you haven't had a chance yet. So go ahead. >> Thank you counselor. Um you know I just wanted to say that I did attend u last week's meeting as well and um you know 181 00:58:37.200 --> 00:58:53.040 it was appall appalling to hear you know some of the stories um where you know students are struggling you know beyond their ability to control it where they definitely need a lot of studentf facing positions. um me graduating from Chelsea High School in 2019, you know, only a 182 00:58:53.040 --> 00:59:08.400 couple of years ago, I can definitely um relate to, you know, all the complexities that it means being a young person growing up in Chelsea. But I know that nowadays it is a lot more difficult because you're, you know, you're dealing with a um a more difficult presidency when it comes to a community like 183 00:59:08.400 --> 00:59:25.359 Chelsea. Um and all of that gets complicated especially when now you have uh um you know loss of funding and that means the loss uh you know the loss of the ability to be able to provide the um necessary attention that each student 184 00:59:25.359 --> 00:59:41.440 needs um especially again in a city like Chelsea. Um and so you know today after this meeting we'll also visit the uh capital improvement plan for the city of Chelsea. Um a lot of uh government decisions are a balance of decisions of 185 00:59:41.440 --> 00:59:57.280 what priorities we have. Um and this council has always made sure that those priorities are always also with students and education and preparing a better future um for the city of Chelsea because again, you know, the the future 186 00:59:57.280 --> 01:00:14.400 stands with the with the kids. And so, you know, having that in mind, I want to make sure that as a council we keep on thinking, all right, what's what's maybe a priority that maybe we can put off for a couple of years so that maybe we can, you know, see about saving some of those positions that are going to be very 187 01:00:14.400 --> 01:00:29.680 beneficial to all the students that again are going to grow up and are going to come back to the city and are going to make Chelsea a better place. you know, I had the opportunity to move out, go somewhere else, but I decided, you know what, I've given so many years to the city and maybe I want to continue living here, and that's what I've done. 188 01:00:29.680 --> 01:00:46.200 Um, so hopefully again, you know, going through the process in the council and seeing, you know, how much money we can spare to make sure that we save additional positions, it's something we have to do. Thank you. >> Thank you, councelor. Councelor Taylor. 189 01:00:46.480 --> 01:01:02.559 >> Yeah. I just wanted to make something clear like us not being at 130%. That that that's that's really unrealistic. Okay. Very unrealistic. We are not Lexington. We are not Weston. We 190 01:01:02.559 --> 01:01:20.079 are not Newton. Okay. Um we're a fairly poor community. And we cannot act or spend like we're a rich community. Now if people want to change that, if 191 01:01:20.079 --> 01:01:36.079 people want to like you look, we can be guided all we want by the community. Community should be heard, but it doesn't matter what the community says if we don't have the ability to generate 192 01:01:36.079 --> 01:01:51.200 revenue. This is the most important thing. If we cannot generate revenue, we have no revenue to spend. So unless you want to go back into 193 01:01:51.200 --> 01:02:08.559 receiverhip and and and load this 25 years of us making progress to throw it away because we refuse to to accept reality. And we we we all want to be about our, you know, our constituency, our 194 01:02:08.559 --> 01:02:24.640 ideology, whatever we want instead of looking at the cold hard facts about where we stand and what we need to do in order to generate that revenue. None of the other stuff matters. It just doesn't matter. You're not going to be able to 195 01:02:24.640 --> 01:02:41.359 do it. And trying to compare us to others, saying, you know what, these other communities have this. We should have it, too. You're right. We should, but we're not. We're not in no position to do that. That's that's the course of years trying to build and making the 196 01:02:41.359 --> 01:02:58.240 right decisions. So I I just wanted to I just wanted to let that that you know I I don't want anybody to be you know under the wrong impression about where we where we are and what we're able to do. What we're able to do is the most 197 01:02:58.240 --> 01:03:14.400 important thing. Thank you. Thank you, councelor. Councelor Dees was >> I will be very brief. I just wanted to state also that for example, I myself um am very aware through my work in my previous uh years before even becoming a 198 01:03:14.400 --> 01:03:30.480 counselor of the issue we have at the state level with the formula that distributes money, right? Like we can argue all around here and we can be upset about the money we have or the money we don't have. The the reality is that it's coming from the state and the 199 01:03:30.480 --> 01:03:47.839 state has a formula that is broken and it's not equitable equitably distributed among the communities most in need. What I will go back to is my previous point made. We need to be better at managing our money in ways where I'll I'll 200 01:03:47.839 --> 01:04:02.720 piggyback off what my fellow counselor said. If there are positions that are in place right now that maybe we are not able to see the full implementation of because it takes time and so we're not seeing outcomes yet or maybe it's not um 201 01:04:02.720 --> 01:04:17.839 appropriate at the time because we are you know seeing a decreasing number of enrollment. Then let's put those positions on pause and maybe we pick it up in the future and let's then evaluate every level from administration to faculty to teachers. Let's make sure 202 01:04:17.839 --> 01:04:33.839 that we are able to keep hold of those positions that are crucial and vital right now such as our such as we heard very clearly from the audience last week, social workers, mental health specialists, um those bilingual teachers, right? You name it. and then 203 01:04:33.839 --> 01:04:50.559 make the decision to onboard when we're in a healthier financial level those other positions that obviously we want because who wouldn't want our youth to have those opportunities that other communities have, but we're we're not at the same level playing field as other communities. And so until the state fixes this formula, we're going to 204 01:04:50.559 --> 01:05:06.400 continue to see this back and forth. And you know, on top of that, we're a sanctuary city. We're in under attack. So let's make sure that we are making more um more of an analysis of what is happening within the schools with the different 205 01:05:06.400 --> 01:05:22.480 positions. Similar to how at the city level uh we're working with um our city manager to have you know whoever is getting a a a funding from the city will be coming up to share with us their outcomes and we'll be able to have a a a 206 01:05:22.480 --> 01:05:40.240 more transparent budget this year. this year as we hear from those who are directly benefiting from city dollars. And so, let's do something. Let's think outside the box with the schools. Let's work with the schools that support them, but also let's be creative. We're going to continue to see these cuts. Um, it's 207 01:05:40.240 --> 01:05:55.839 a state formula issue. Yeah. >> Thank you, counselor. Uh, with that, uh, we will now adjourn the subcommittee meeting. Uh, I'm told that we need about 5 minutes to switch over into the regular meeting. So we will um adjourn and we'll get started in about 5 to 7 208 01:05:55.839 --> 01:06:00.599 minutes with the next meeting. Thank you.