Framingham City Council Finance Subcommittee Meeting

Date: September 22, 2026

The Finance Subcommittee (President/Councilor Cannon, Chair; Councilor King; Councilor Stefanini; Councilor Malik, remote) met to discuss water/sewer billing equity between rental apartments and owner-occupied homes/condominiums, review approximately $6 million in outstanding water/sewer arrears and collections practices, consider reauthorization of the Opioid Stabilization Fund, and preview the upcoming fiscal year budget cycle.

Public Comments & Testimony

• A representative of Eagle Rock, a rental apartment community, testified about billing inconsistencies between single-family homes and condominiums versus rental apartments. He stated Eagle Rock wants to be an important, valuable member of the community and support the subcommittee and council.
• He reported that people are choosing not to rent apartments in Framingham because the total cost is $1,000-$1,200 more than in Natick, while a condominium in the same exact configuration in Framingham pays $1,000-$1,200 less.
• Councilors responded that the council does not set water/sewer rates, but President Cannon emphasized the council's charter responsibility to audit and investigate government performance, bring visibility to issues, and increase public understanding. He suggested helping residents advocate to the administration and rate-setting authority, and noted the council does not perform collections itself.
• A councilor observed the administration did not only raise residential water rates but also changed the gallon-tier classification thresholds, pushing accounts into higher-priced categories. Apartments are taxed as residential because they are residential, even though they are billed at a commercial-style rate.
• Councilors supported a discussion between the council, the mayor's office, Anthony (administration), and the new CFO to develop a structure that works better, while keeping single-family homeowners in mind if prior tier structures are revisited.

Consent Calendar

• Motion by Councilor Malik to approve the minutes of August 31, 2026; approved unanimously.

Discussion: Water/Sewer Arrears and Collections

• Councilor King presented data showing roughly $6 million total outstanding in water/sewer arrears, with nine accounts on payment plans representing under $100,000 of that total.
• The city earns 14% interest on overdue accounts. State statute requires unpaid water/sewer bills to be committed to the tax bill within approximately three years (before October 1st) or the city loses the tax title remedy and would be limited to other legal collection methods.
• King directed that all accounts still within the lien period must be committed to the tax bill even if on a payment plan or in bankruptcy, noting that committing preserves the city's lien enforcement rights even when collection is stayed.
• Concerns were raised that some payment plans had not been documented in writing; the administration stated it is implementing written agreements with clear terms, expectations of both sides, and consequences for non-adherence.
• A new notification system tied to tax bills is being implemented, with data as of July 7, 2026. The committee discussed waiting to revisit the issue until after demand notices go out, possibly later this fall or after the new year.
• Councilor King will provide a yearly breakdown of arrears by district/settlement. The administration acknowledged it is still determining why certain prior collection steps were not taken, noting the responsible staff and manager had departed.
• Questions were raised about how Framingham's delinquency rate compares with other communities and its own historical data; a formal benchmarking response was not fully provided.

Discussion: Opioid Stabilization Fund (Order 2026-093)

• In 2022, the council voted to accept MGL Chapter 40, Section 5B, paragraph 4, which created the opioid stabilization fund; state law requires the fund to remain in existence for at least three years.
• Without reauthorization, the $750,000 balance would return to the general fund and close to free cash. The Health Department attended to answer questions.
• Councilors described $750,000 as "a lot of money, but not so much money that we can do major, major, major things," and discussed whether the fund could be leveraged operationally, including for housing. An internal administration task force exists, but not all answers were available because the responsible program person and manager had left.
• Any expenditure from the fund would still require City Council approval through the Finance Subcommittee. One councilor expressed high confidence in the city's Amazon funding relative to other, less transparent areas of the budget.
• No vote was taken; the item was discussion only.

Discussion: FY27 Budget Outlook

• The mayor's office will hold an initial budget conversation the following week, with a plan expected; approximately $10 million in free cash is being sorted through.
• Capital requests are due to the council around November 1st, and a fuller budget discussion is planned after one full quarter of revenue, especially local estimated receipts.
• Councilors discussed a three-year financial plan incorporating the city's retirement liability and considered setting aside part of the large free cash pickup as a cushion in case investment returns do not meet expectations, to avoid stressing future budgets.
• Councilor King reiterated his intention to step down from the Finance Subcommittee after the budget process concludes, consistent with his statement when the committee was formed.
• The next Finance Subcommittee meeting was scheduled for Tuesday, October 27, 2026, for 90 minutes, with the Planning Board's own meeting time in mind.

Key Outcomes

• Unanimous approval of the August 31, 2026 meeting minutes.
• Directive to the administration to commit all eligible water/sewer accounts to tax bills before statutory deadlines to preserve lien rights, including accounts on payment plans or in bankruptcy.
• Directive to document all payment plans in writing with clear terms, expectations, and consequences.
• Councilor King will provide arrears data broken down by district/settlement.
• The subcommittee will revisit arrears data after demand notices are sent and will continue budget discussions with the mayor's office the following week and after first-quarter revenue data is available.
• The Opioid Stabilization Fund reauthorization (Order 2026-093) remains under discussion with no vote taken.