Committee on Finance Meeting Summary - October 16, 2025

The Committee on Finance convened on October 16, 2025, to review budget transfers, policy updates, and strategic fund initiatives for the City of New Bedford. Key discussions centered on fiscal impacts of budget cuts, the necessity of supplemental appropriations, and the transition of Tax Increment Financing (TIF) oversight from state to municipal control. While several items regarding transfers and stabilization passed or were tabled for further review, the Committee failed to approve a requested restoration of budget cuts for the MIS department due to concerns regarding the timing and the availability of funds within other departments.

Consent Calendar

• Three letters of absence from Councillors Abrew, Burgo, and Oliver were received and read into the record.

Public Comments & Testimony

• No public comments or testimony were recorded during this meeting transcript.

Discussion Items

• MIS Budget Transfer ($132,572): Administration explained a transfer of funds from Police to MIS to cover annual subscriptions for two firewall services (City Hall and Police) that were mistakenly budgeted in Police. The project aims to unify security management under MIS. Councilors noted the error but expressed support for the technical necessity.
• MIS Appropriation Request ($63,662): The administration requested funds to address a shortfall following a $162,000 budget cut. Staff detailed savings generated by removing Microsoft 365 licenses for 250 employees (saving ~$30,000) and deferring a city AI chatbot project. They warned that further cuts would impact essential services like "Peak Agenda" and GIS support.
  • Positions: Councilors Pereira and Gomes expressed full support for the administrative effort to cut costs and requested a referral to the full Council to see if other funds could be identified for the remaining gap in the future. Councilors Morrad, Carney, and Choquette expressed strong opposition to the request, stating it is premature to restore cuts three months into the fiscal year and expecting the administration to find the funds within the existing $500 million budget by reallocating from other departments. Councilor Lopes questioned the timing and necessity of consulting on the budget, while Councilor Carney reiterated that restoring cuts undermines the intent of the original budget reductions.
• Cable Stabilization Fund ($4,859,000): The Committee discussed transferring a surplus from the former Cable Revolving Fund into a new "Cable Television Public Education and Government Access Stabilization Fund" within the General Fund to subsidize future cable operations amid declining subscriber counts and the rise of streaming.
  • Positions: Councilors Carney expressed support for the mechanism, noting the double protection of the fund being named specifically for cable and requiring a supermajority vote for spending. Councilor Carney raised concerns about the administrative process, asking for guarantees that the funds would not be diverted to other purposes. Councilor Lopes questioned the long-term viability of cable TV, noting the technology is a "dead ride" as consumers shift to streaming.
• Solid Waste Transfer ($175,000): The Committee reviewed a request to fund a $208,000 projected deficit in the Solid Waste department, attributed to rising tonnage fees under a contract with Capital Sanitation. The base fee has increased significantly compared to the previous contract.
  • Positions: Councilor Gomes expressed concern regarding the steep escalation of costs (from $6.7M to $9.4M) under the new contract. Councilor Lopes and Councilor Carney moved to table the item to request the presence of the Director of Capital Services (Jennifer) to better understand operational details and the consultant engagement process before voting.
• Health Insurance Transfer ($750,000): The Committee debated a request to restore a $750,000 cut to health insurance funding. Administration explained that the cut places the financial burden on the Medical Claims Trust Fund rather than the General Fund, eroding the trust fund balance below the DOR recommended 16.7% reserve (currently estimated at 13%).
  • Positions: Councilor Carney expressed support for the transfer, citing the need to maintain financial ratings and compliance with DOR guidelines. Councilor Lopes expressed support, acknowledging the risk to the trust fund. Councilor Morrad expressed opposition or reluctance, questioning the lack of a new medical claims report and the timing. Councilor Giesta and Councilor Gomes expressed support for the transfer to prevent the erosion of the trust fund.
• TIF/STA Policy (Item 6): The Committee reviewed the new TIF policy following state legislature changes that removed state oversight. The Solicitor and EDC presented the new framework where the Assessor's Office handles compliance and the EDC handles applications.
  • Positions: Councilor Lopes expressed concern that the policy document was not yet available for review, despite previous commitments. He stated he would be unable to support the item without seeing the draft SOP, application, and compliance forms to ensure no loopholes exist regarding monitoring and enforcement. Councilor Pereira supported the process but requested the application and forms be provided before the next meeting to ensure readiness for prospective applicants.

Key Outcomes

• Approved:
  • Transfer of $132,572 from Police to MIS for firewall services (Item 1), referred to full Council for adoption.
  • Establishment of the Cable Television Public Education and Government Access Stabilization Fund (Item 3), referred to full Council with a positive recommendation.
  • $750,000 health insurance appropriation (Item 5), referred to full Council with a positive recommendation (Passed 6-1).
• Failed:
  • $63,662 MIS appropriation request (Item 2) failed to be reported out to the full Council (Vote: 3-4 against referral). The item effectively died in committee.
• Tabled:
  • $175,000 Solid Waste transfer (Item 4) tabled pending the presence of the Director of Capital Services and further operational discussion.
  • TIF/STA Policy review (Item 6) tabled by Councilor Lopes to await the submission of the draft SOP, application, and compliance forms.
• Referred:
  • Items 7 and 8 were referred to the Council on Audit pending the attendance of Neil Mello.
  • Items 9 and 10 were waived and referred to the full City Council for no further action.
• Adjournment: Meeting adjourned at 9:12 PM.