Finance Committee Meeting, October 21, 2026: Grants, Fee Waivers, and Union Costs Approved

The Finance Committee met on October 21, 2026, to consider several supplemental appropriations, a new fine schedule, fee waivers, and an update from the Director of Finance. Key discussions centered on the city's obligations under union contracts, the purchase of fire department equipment, a maritime rescue vehicle, and a resilience hub study. The committee also debated fee waiver policies and expressed a desire for more transparency in budget reporting. All items except one received favorable recommendations to the full City Council.

Consent Calendar

• Approval of the minutes from the October 7, 2026, Finance Committee meeting.
• Approval of the agenda as amended: removed R-20-26 (not ready) and added SA 527, SA 627, SA 727, SA 827, and FT 327.

Discussion Items

• FT 327 and SA 827 (Union COLA Funding): These two items are tied to the finalization of union negotiations for the cost-of-living adjustment (COLA). FT 327 transfers funds to appropriate departments to absorb the COLA impact, and SA 827 replaces the transferred pay-go funds with capital reserve. Both were approved unanimously after explanation.
• SA 527 (Fire Department Grant): A FEMA grant for FY27 assistance to firefighters. The grant will purchase three cardiac monitor defibrillators and 15 AEDs. The committee discussed the need for greater transparency in how grant savings are used but ultimately approved the measure.
• SA 727 (Port Security Grant): A grant for a remote-operated vehicle (ROV) for underwater search and rescue. The city will provide a match of approximately $28,000. Discussion included coordination with the Naval Academy. Approved.
• SA 627 (Resilience Hub Study): A $12,000 grant to study microgrid and battery storage pre-construction costs at the Eastport Terrace/Harbor House redevelopment. Members questioned the timing given the project's distant completion, but approved due to the small amount and potential long-term benefit.
• R-37-26 (Eviction Notice Fines): Establishes a $1,000 per day fine for violations related to tenant eviction process (under O-30-26). The committee determined the fine is sufficient to deter violations and approved it.
• R-39-26 (Fee Waiver for Budweiser Clydesdale Event): A fee waiver for the Budweiser Clydesdale horses meet and greet on December 27, 2026, organized by the West Street Association. A lengthy debate on fee waiver criteria ensued; Alderman O'Neill opposed, noting a pattern of waivers and lack of criteria. The motion passed 2-1, but the committee agreed to discuss fee waiver policies further at the next meeting.
• R-40-26 (Flea Market Itinerant Merchant Sales): Authorizes hawker and peddler sales in the Historic District for a November 22, 2026, flea market. The committee voted to take no action, recommending it be referred to the Economic Matters Committee in the future.

Key Outcomes

• Favorable recommendations (to full City Council): FT 327, SA 527, SA 627, SA 727, SA 827, R-37-26, and R-39-26.
• No action taken on R-40-26.
• Finance Department Update: Director of Finance Ajayi reported that the audit is on target in the final fieldwork phase; collective bargaining agreements (CBAs) are being implemented; and the FY2028 budget timeline has been issued. The committee requested that future updates include a summarized budget vs. actual report highlighting the top five to ten variances.
• Next Steps: The committee will invite Ms. Nolan to discuss fee waiver criteria at the next meeting. The full City Council will consider the approved items on Monday, October 26, 2026.