[{"_1":2,"_111":-5,"_112":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87,99],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6638867,"mediaKeyId","2567742-7886e90e9a8e0e02fb7bdec6c2a97177","parentId",2567742,"title","Finance director: Somerville faces tighter FY26 outlook after midyear review; health insurance and pensions drive costs","audioSeconds",1015,"startMs",12665000,"endMs",13680000,"viewUrl","/Search/View?dp=1&key=2567742-7886e90e9a8e0e02fb7bdec6c2a97177&start=12665&end=13680","thumbnailUrl","https://assets.pipeline.soar.com/2567742-7886e90e9a8e0e02fb7bdec6c2a97177/thumbnail_12665000.jpg","articleUrl","/articles/6638867/Somerville-City/Middlesex-County/Massachusetts/Finance-director-Somerville-faces-tighter-FY26-outlook-after-midyear-review-health-insurance-and-pensions-drive-costs","mediaUrl","https://secure.pipeline.soar.com/6638867-2088b4b2e1752b091fd89c5511a717b5/orig.mp4?Expires=1770450860&Signature=dzJV~AL3v~NdYBIkZaCu3Qos1qo30t~uzilTCKj2QXFiyf47Z2~sPZRE2aZmFaQr42XlT4lPo3tSysdUrvHtH-1gv95NlAKT10r1~fDWB8Sw6iiPkYru34jQlk7P0xxKg4Iz-FgnccbBuqXNjZRTH8GxvoJb82YvvAbPzM3~JpsTh13fz~HLzg5-~QuK1hfHlgTWh~o~apy-juFV5VH79FHaqxFEYswLJ-qUNB4xN8kJEK0Rs6z4qDPFcv1QEacH~rtYrmCkPN0~Kk0AlNXSSQvaAG~pFQC79qJjq0mkRu6lKNvjZVlvTsDGl8blmvqDSAdcFURtoBStamzELZbvcA__&Key-Pair-Id=KUT5TJCACFTXG","author","Somerville City, MA","date","2025-03-12T00:00:00Z","article","Somerville’s Finance Director presented the FY25 midyear financial report to the Finance Committee on March 11, telling the committee the city was on track for a modest surplus in FY25 but that next year’s budget faces multiple pressures.

Key points from the report
- Revenue: Through January the city had collected roughly 68.1% of its annual revenue budget; collections were slightly stronger than the same point last year but slower in major growth categories such as building permits and meals tax. Building‑permit receipts have declined from prior years as development activity slows in a higher‑interest environment.
- Health insurance: The Group Insurance Commission (GIC) had just announced a substantial proposed increase in medical premiums. The administration said GIC proposed average increases on some plans in the double digits (the presentation referenced an illustrative 12.7% increase for some Medicare‑related plans), which would add several million dollars to next year’s employer health‑insurance budget.
- Pensions: An updated actuarial valuation will raise the city’s pension appropriation and contribute an estimated increase in FY26 pension costs; the city’s current amortization schedule is to pay down liability through 2033.
- Debt and capital: Rising interest rates affect debt service estimates for the FY26 capital financing plan; the director provided an estimate of modest debt‑service growth tied to planned capital borrowing and to short‑term notes issued for an ongoing property matter.

Asked about federal grants, the finance director warned that possible federal funding reductions for education and other programs would create additional budget uncertainty and asked the committee to consider multiple scenarios.

The committee requested a full breakdown of federal grant receipts and school grant items that could be affected by budget action and the administration agreed to supply a department‑level grant list and to present updated revenue projections after the third quarter.

Why it matters
The midyear report frames the administration’s preliminary planning for FY26. Health‑insurance premiums and pension requirements are fixed‑cost pressures that reduce available capacity for new initiatives; lower development permit revenue and possible federal grant reductions would further constrain next year’s options.

What the committee asked for next
- A department‑level list of FY24 and FY25 federal grants and a school‑department breakdown of federal funding at risk.
- Updated revenue projections with third‑quarter data for use in FY26 budget development.

Provenance: Formal midyear presentation and committee Q&A, March 11 meeting transcript.","mediaType","Video","parentTitle","Somerville City Finance - 2025-03-11","oneSentenceSummary","Finance Director presented the FY25 midyear report to the finance committee, reporting modest revenue growth but flagging health‑insurance and pension cost increases and slower development-driven revenue; the committee asked for more granular grant and school-revenue detail ahead of FY26 budgeting.","taxTitle","Somerville City, Middlesex County, Massachusetts","taxId",4564,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6638872,"City staff present nonunion classification and compensation plan; committee keeps item in committee for follow-up",5145,6525000,11670000,"/Search/View?dp=1&key=2567742-7886e90e9a8e0e02fb7bdec6c2a97177&start=6525&end=11670","https://assets.pipeline.soar.com/2567742-7886e90e9a8e0e02fb7bdec6c2a97177/thumbnail_6525000.jpg","/articles/6638872/Somerville-City/Middlesex-County/Massachusetts/City-staff-present-nonunion-classification-and-compensation-plan-committee-keeps-item-in-committee-for-follow-up","https://secure.pipeline.soar.com/6638872-dc7009b6d659c072a0ed8b1f4bb66056/orig.mp4?Expires=1770450860&Signature=gcNzmwllPFrnjvDQv3jJNtnZDQ5rr1klb-5Z7EhbkBWODvcxyRTt3dPRbWok1Mm6I90YQMfHraot40rqlLJLxZnY13I1r7olpfRp-euIrTX4EbkwLzqXyLYbARjFhj1E9NERxBjYSCQtlQrAjcWWi5-KQR-TnRWDPftPfMpGrwuXzx5x4DLH2WzQxctVa-BWKbT-NNjs3NZMqAdDYbEONoMYe2bJ8N9Ij1wDNRlHZIokLyVMaB6mJCkjvkesGlb1AK1pAXyr6P3RkiBFrRCPLIYhmRh4cimwYkIchMXZXK-UObe1tVM~uvY8pLuMOAJfXaUb2YCN7aDZITEWBDTjNw__&Key-Pair-Id=KUT5TJCACFTXG","City human resources and budget staff presented a classification and compensation study to the Finance Committee on March 11 that proposes a new nonunion pay structure and targeted increases focused on the city’s lowest-paid roles. Director Gill and Deputy Director Ellen Schneider Collins said the consultant‑driven study and Municipal Compensation Advisory Board review recommended new bands designed to improve recruitment and retention and reduce pay inequities.

The administration asked the committee to recommend changes to the nonunion salary ordinance and to authorize retroactive application of the new scales to Jan. 1, 2025. Budget Director Mike Mastruboni told the committee the appropriation to fund the adjustment had been prepared for the forthcoming council appropriation process.

Committee members expressed support for raising pay at the bottom of the pay scale, but several councilors—citing outstanding questions about how particular titles were mapped into the new bands, the treatment of multi‑member body stipends and the process for elected‑official compensation—asked for more time. The city solicitor and the law department advised the committee on statutory timing and state ethics guidance, noting that elected‑official compensation raises legal and timing issues that the Municipal Compensation Advisory Board’s recommendation would help resolve.

The committee voted to keep the nonunion ordinance and related elected‑compensation work in committee and asked the administration to provide: (1) a clearer mapping of old titles to new classifications, (2) the methodology used by the classification consultant, (3) copies of department‑level feedback from division heads and (4) implementation details for retroactive pay and pension/benefit calculations.

Why it matters
The proposed plan would change base pay bands for many city employees and includes retroactive pay to Jan. 1, 2025. Committee members supported the overall equity goal but wanted more staff input, a clear audit trail and coordination with the Municipal Compensation Advisory Board before the council votes on ordinance changes.

Next steps requested by the committee
- Administration to supply an itemized mapping of prior titles to the proposed bands and the consultant methodology.
- Administration to present department‑level feedback and a plan for implementing retroactive payments and employer benefit contributions.
- City legal staff to return with clear options for ensuring the city complies with state ethics guidance if the council considers changes tied to elected official compensation.

Provenance: presentation by HR and budget staff; law department guidance; committee motion to keep in committee.","Administration told the Finance Committee it has a market-driven nonunion classification and compensation plan that would raise pay for lower-paid employees and reclassify some roles; the committee kept the ordinance in committee to allow additional review and feedback from staff, the Municipal Compensation Advisory Board and the law department.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6638876,"Finance committee refuses midyear approval for three Water & Sewer positions amid concerns about timing and leadership",2872,3268000,6140000,"/Search/View?dp=1&key=2567742-7886e90e9a8e0e02fb7bdec6c2a97177&start=3268&end=6140","https://assets.pipeline.soar.com/2567742-7886e90e9a8e0e02fb7bdec6c2a97177/thumbnail_3268000.jpg","/articles/6638876/Somerville-City/Middlesex-County/Massachusetts/Finance-committee-refuses-midyear-approval-for-three-Water-Sewer-positions-amid-concerns-about-timing-and-leadership","https://secure.pipeline.soar.com/6638876-5b4dca8994b08a03cb0a5f780a61bcb2/orig.mp4?Expires=1770450860&Signature=S0dTMaG62fawP3vEfBBVPu47TmumHTGpFKvtrTPzWTP7SnWaG34FR2HPZ4XoH3Anq~WaH3MHNs-uBoaos7WUhicXV8ONqskobfjj5l8KQitlXYN5HxrdTqzBbVTiRFMZxSjTJeyiu6fSInDbH8DEsCP1p9f-AUfe2RaGzk-c6UWUAAbliGg2Zzz2RX5afyU8rNriTFj5U4A~KDlIArYZjpTDGdslRSu9~fFq90vkK1mwohtMEPr0Oe6bYQMeKh-LD7xVsQxSoKy2xd8mvCADqhhfrLusUMgVK4wWVOpepZkFQmV0EUmVGn3rbAW9VNugnO~WousC25BzfYVtNUFFsw__&Key-Pair-Id=KUT5TJCACFTXG","Kelly Hebert, director for finance and administration for the Water & Sewer Department, asked the Finance Committee on March 11 for authorization to use available Water Enterprise Fund wages to fund three positions: a utility billing manager, a service operations manager and a reclassified billing analyst. Hebert said those roles were intended to address workload and cross‑training needs in a department that “produces or generates at least 51,000 billable invoices every year.”

Hebert and other staff described the request as urgent because of high billing volumes, recent turnover in senior Water & Sewer leadership and a series of vacancies that department leaders said were hampering customer service and bill‑run operations. City budget and HR staff supported the request as part of a short list of near‑term, high‑priority positions the department wanted filled before the FY26 budget cycle.

Councilors pushed back repeatedly. Councilor Scott and others said the department lacked a permanent director and that creating two new ongoing nonunion management positions months before the FY26 budget—when elected leaders and possibly a new mayoral administration could set long‑term priorities—was inappropriate. Councilors asked for org charts, vacancy counts and a clearer explanation of why temporary or contracted help could not address immediate workload while the department is reorganized.

After extended discussion the committee considered a motion from Councilor Klingen to recommend not approving all three items. On roll call the committee voted to recommend not approving the requested midyear funding for the utility billing manager, the service operations manager and the billing analyst reclassification. The clerk recorded affirmative votes to recommend not approving from all councilors present.

What committee asked for next
- Staff were directed to return with the three position requests as part of the FY26 budget, accompanied by an organizational chart, current vacancy and overtime data, and an explanation of short‑term alternatives (contractors or temporary staffing) if the committee decides not to fund new permanent FTEs midyear.
- The committee also asked for clearer documentation of who would report to the utility billing manager and for more detail on the billing backlog and cross‑training plan.

Quotes
Kelly Hebert, director for finance and administration for the Water & Sewer Department, said, “This department basically produces or generates at least 51,000 billable invoices every year.”

Councilor John Klingen said the committee should defer creation of new permanent positions until a director is in place to set the department’s strategic structure.

Why it matters
The committee’s recommendation against midyear additions means the department must either hold these positions for FY26 or propose alternative short‑term staffing in the remainder of FY25. The committee’s action reflects an ongoing tension between department leaders who cite operational need and councilors who prefer permanent staffing decisions to be taken in the annual budget process with full organizational context.

Provenance: initial presentation and request; final motion and roll call were recorded in the March 11 transcript.","After extended questioning about vacancies, cross-training, and whether a new department director should set staffing priorities, Somerville’s finance committee voted to recommend against three midyear Water & Sewer staffing requests and asked staff to return with the requests in the FY26 budget.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":103,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6638881,"Finance committee recommends approval for most grants and extensions; split votes on safety grant; water staffing requests blocked",3727,2833000,6560000,"/Search/View?dp=1&key=2567742-7886e90e9a8e0e02fb7bdec6c2a97177&start=2833&end=6560","https://assets.pipeline.soar.com/2567742-7886e90e9a8e0e02fb7bdec6c2a97177/thumbnail_2833000.jpg","/articles/6638881/Somerville-City/Middlesex-County/Massachusetts/Finance-committee-recommends-approval-for-most-grants-and-extensions-split-votes-on-safety-grant-water-staffing-requests-blocked","https://secure.pipeline.soar.com/6638881-4e88ac59b45ad48c859c60bd0292a175/orig.mp4?Expires=1770450860&Signature=jkT3vsK1hx4hpqrxe-jK-35GcbCVl1nPAiP7Wl0XuivT6-w~xX1mo38ExQxLjpDuMcdoBjUdewFc2QRZqUJsHVuMdHg49atM03k4r5QOja-1vNRtwZmCThG0OtArc53azPP8gDgHU0wEIFKrRQkr2CszSAYwnRBkIp4-0VpFykdYpTIpym7K8iZBJ~8rv9UPLz8jGz~qolsHQ1t0i4Sm~qOLAtYlQ~hHSSUWHYZEmfOqg20ooe-3EhocHOYS7q9dW~xiZT0DlcnELhW9dBtGL7w2kwv-~pr6Di282aMTRtt0r-G-ieqELIlg849Qyw6HP6h3tvCxYSHIOlyzVLIvwQ__&Key-Pair-Id=KUT5TJCACFTXG","The Somerville City Council’s Finance Committee on March 11 recommended approval of a group of mayoral grant and contract requests, recorded two roll-call outcomes during the meeting and recommended against funding three midyear Water & Sewer department positions.

In a roll call the committee recommended approval of a $23,105 subaward from the Metropolitan Area Planning Council for the MetroMayors Community Safety Initiative (commonly called the Shannon Grant). The roll call was 3 in favor and 2 opposed: Councilor Imbaugh (yes), Councilor Burnley (no), Councilor Clayton (yes), Councilor Scott (no) and Councilor Wilson (yes).

A second roll call approved $87,450 in noncompetitive staffing funds from the Executive Office of Public Safety and Security for the Police Department with a 5-0 vote: Councilors Mbaugh, Burnley, Clayton, Scott and Wilson all voted yes.

Separately, after a lengthy presentation and questions about timing and departmental leadership, the committee voted on a motion to recommend not approving three midyear Water & Sewer nonunion position requests (Utility Billing Manager; Service Operations Manager; reclassified Billing Analyst). The motion to recommend not approving passed on a roll call vote with the committee registering affirmative votes to recommend nonapproval from Councilors Mbaugh, Burnley, Clayton, Scott and Wilson.

The committee also took a final roll call at the meeting’s end to recommend approval of a group of items that had been “laid on the table” earlier in the evening; those items were recommended to be approved by unanimous roll call.

What the committee recommended
- The MetroMayors grant: recommended 3–2 to approve after discussion about program uses and required matching overtime funds.
- Executive Office of Public Safety and Security staffing grant: recommended 5–0 to approve.
- Three Water & Sewer position requests (midyear): the committee voted to recommend not approving all three requests (5–0 on the motion to not approve).
- Several other grant acceptances, contract extensions and prior-year invoice payments discussed at the meeting were bundled and recommended for approval by roll call at the end of the meeting.

Why it matters
Committee recommendations move to the full City Council for final approval. The committee’s decision to recommend against the three midyear Water & Sewer positions signals continued concern among councilors about creating new or reclassified permanent positions outside the normal budget cycle, especially in a department that currently lacks permanent senior leadership. Conversely, the committee’s approvals for several public-safety and elections security grants will allow the city to accept and spend state, regional or foundation funding for specific programs without additional local match requirements.

Votes at a glance
- 25-0283 (MetroMayors Community Safety Initiative subaward, $23,105; $5,777 match): committee recommended approval, roll call 3–2 (Imbaugh/Clayton/Wilson yes; Burnley/Scott no).
- 25-0284 (Executive Office of Public Safety and Security staffing grant, $87,450): committee recommended approval, roll call 5–0.
- 25-0258 / 25-0260 / 25-0262 (Water & Sewer midyear funding of three positions): committee voted to recommend not approving all three items, roll call to recommend not approving 5–0.
- Bundled approvals listed and recommended by final roll call at meeting end (items laid on table earlier in the meeting): recommended approved by roll call 5–0.

What’s next
The committee’s recommendations will go to the full Somerville City Council. The mayor’s office and department leaders will return with further details and budget materials where required; the Water & Sewer midyear request is expected to be reintroduced in a future budget context. The committee asked staff to provide follow-up detail on several grant and personnel questions at the next meeting.","Somerville Finance Committee on March 11 recommended approval of several mayoral grant requests and extensions, recorded a split roll-call on a Metro Mayors safety grant, and voted to recommend nonapproval of three water enterprise midyear staffing requests after extended debate.","actionData","errors"]

Article not found

Finance director: Somerville faces tighter FY26 outlook after midyear review; health insurance and pensions drive costs

City staff present nonunion classification and compensation plan; committee keeps item in committee for follow-up

Finance committee refuses midyear approval for three Water & Sewer positions amid concerns about timing and leadership

Finance committee recommends approval for most grants and extensions; split votes on safety grant; water staffing requests blocked