City approves operating budget

On June 28, 2017, in Latest News, by The Somerville Times

Comprehensive support for the Green Line Extension project is but one of many significant portions of the FY18 Operating Budget approved by the city.

Spearheads resolutions to several issues

By Jordan Deschenes

The Board of Aldermen approved budget appropriations totaling $216,811,873 last week following two weeks of budget-related Finance Committee meetings. The total differs from the mayor’s proposed budget as a result of minor cuts. Outside of the budget, three major items were also approved to address issues related to city efficiency, housing stock, and future climate commitments.

Free Cash and the FY18 Operating Budget

The largest municipal operating budget appropriations related to the funding of both the Sewer and Water Enterprise Budgets. Aldermen also approved the creation of the Green Line Extension (GLX) Stabilization Fund.

Twelve different allocations from the Unreserved Fund Balance Account were approved, totaling over eight million dollars. Also known as “free cash,” unreserved funds are handled diligently each year by the city to ensure that they are not lost during the change to a subsequent financial year calendar.

The board fulfilled the two requests to mitigate interest payments on $50 million in city bonds taken out for initial GLX funding by decreasing the principal amount. The items called for the appropriation of over $2.9 million for GLX funding from both unreserved funds and reserved revenue as a result of building sales.

Free cash was further budgeted to add to the Facility Construction and Renovation Stabilization fund to aid renovation and construction costs for the new Somerville high school.

Items related to city officers, carbon pollution, and Airbnb monitoring

Among dozens of other regular items that were addressed throughout the night, the board approved three items that would ensure the city’s commitments to sustainable development and greater fiscal and operational efficiency.

Ten aldermen signed on to an item that that re-affirmed the board’s commitment to the principles of the Paris Climate Agreement, with particular regard to carbon pollution. The city is currently in talks to aim for net-zero carbon emissions by 2050. Alderman Katjana Ballantyne explained that this commitment was necessary because city hall would be establishing a long-term climate change plan in the upcoming fiscal year.

“The world and local communities cannot deny that climate change is a real issue, regardless of what the President of United States says,” said Ballantyne.

“I feel privileged to be living in Somerville where we have such an (environmentally) active community and a city government focused on making Somerville carbon-neutral…and in support of the Paris Climate Agreement.”

Alderman William White presented a draft ordinance that would establish holdover terms during the timeframe for the re-appointment of city officers. White’s ordinance was written in response to a long-standing problem in which expired and vacant city positions have not been filled in a timely manner due to inefficiency.

According to Alderman Robert McWatters, the issue has been handled poorly for nearly two decades and remains to be addressed with legislation or state law. The city has previously handled expired terms by keeping incumbent officials employed without official re-appointment. McWatters served as a city clerk for eighteen years before serving on the BOA.

“This is not unique to this administration,” said McWatters. “In eighteen years, this was a constant problem with all mayors.”

A final item on the agenda set a conversation in motion to properly address the illegal use of whole house rentals for short-term Airbnb renting (under 30 days). Purchasing units for the sole purpose of transient Airbnb renting has consequently diminished the city’s available housing stock for potential buyers, particularly families.

Although the request calls for a temporary solution to identify illegal property owners, city officials are expected to create a long-term plan in the near future. The current method for addressing the issue involves penalizing owners with fines and an eventual court order in the event that he or she does not cease and desist. The city does not have an active program to research and identify illegal Airbnb practices.

Alderman Mark Niedergang claimed that there are hundreds of such units throughout the city and encouraged neighborhoods to report any findings.

“It is illegal and if someone complains, then it will be investigated. So, I encourage everyone to complain if you see a whole unit somewhere in your neighborhood being rented out and you have objections.”

 

1 Response » to “City approves operating budget”

  1. ritepride says:

    GLX Stabilization Fund? A portion of taxes owners pay goes to pay for
    the operation of the “T”, along with the other cities/towns in MA. This has existed for decades.

    Thus the city’s creation of an additional stipend to the “T” is illegal. It places the taxpayers in double jeopardy. This should open the door for state and federal agencies to do a forensic accounting of the city’s finances.