New Bedford City Council Budget Hearing

The New Bedford City Council held a budget hearing on June 1, 2026, to review the fiscal year 2027 budgets for several city departments and funds. The hearing covered the Cable Access Enterprise Fund, Board of Elections, Tourism and Marketing, Arts Culture and Tourism Fund, Traffic Commission, Library, Planning Department, and various functional budgets including the CFO's office, employee benefits, health insurance, pension, snow removal, unemployment compensation, and workers' compensation. Department heads presented their budgets, answered questions, and discussed challenges and future needs.

Discussion Items

• Cable Access Enterprise Fund (Director James Marshall): The department is funded by a 5% grant from Comcast and is self-supporting with no tax dollars. Subscriber numbers have declined from 14,991 in 2024 to an estimated under 13,000 in 2025. The city approved a stabilization fund of over $5 million to offset losses. Channel changes by Comcast in January 2026 caused confusion; notification was sent in November 2025 but not received by the department. Staffing: nine full-time employees, but one retirement will leave four covering city events, making scheduling difficult. The department is important for covering city meetings and events. Questions were raised about indirect costs, future funding sustainability, and potential legislative action at the state level.

• Board of Elections (Chairman Manny De Brito): The budget reflects increased costs for postage, police security, and equipment maintenance. The department has over 100 years of combined staff experience. Postage costs are significant due to vote-by-mail. The state auditor's office reimbursement for unfunded mandates may be uncertain. A contract for voting machine maintenance and storage was discussed. Questions about repairs and maintenance ($49,000), moving costs, and temporary election workers. The department did not request any reclassifications or enhancements. Discussion on the push to move the municipal primary to allow more time for vote-by-mail processing.

• Tourism and Marketing (Marketing Manager Amy DeRozers): The department of two people manages marketing and tourism promotion with a budget of $255,000. They brought in $12.1 million in tourism dollars from May 2025 to April 2026 (from 50+ miles away). The budget was reduced by over $20,000 since FY25. They focus on sustainable tourism and destination management. Questions about banner placements, 250th celebration efforts, travel expenses, and collaboration with other city pages. Concerns about the lack of 250th anniversary decorations in the city. The department uses grants and co-op campaigns to stretch funds.

• Arts, Culture and Tourism Fund: Funded by lodging tax revenue, 95% goes to grants for artists and organizations. The fund is separate from the general fund and cannot be cut without affecting grant distribution. No questions were asked.

• Traffic Commission (Parking Director Lori Alfonso): The traffic commission enterprise fund is funded by parking fees. The department reduced staff from five to four parking enforcement officers to save money. Budget decreased for contractual services and repairs. The downtown parking garage revenue is projected to be slightly down due to trailing 12-month averages. The city is exploring ways to increase revenue through enforcement. Questions about the impact of fewer officers, vehicle and sign costs, and the need for more enforcement in residential permit areas. The CFO noted that revenue projections are based on trailing 12-month averages and cannot be speculative.

• Library (Director Olivia Mellow): The FY27 budget was cut by over $100,000 in salaries, with additional $185,000 removed, eliminating two full-time and several part-time positions. These cuts may affect branch hours and state certification, which provides $350,000-$380,000 in state aid. The library must meet minimum hours (64) and materials expenditure (12% of budget) to remain certified. The budget includes a large increase in utilities (from $27,266 to $130,389) due to electricity costs and solar credit adjustments. The council discussed the importance of maintaining certification and the impact of cuts. The library is also hosting a Lego build event for the 250th celebration.

• Planning Department (City Planner Jen Carloni): The department of seven is fully staffed. They secured nearly $630,000 in grants this year. Accomplishments include zoning changes, comprehensive plan, and transportation projects. The FY27 budget is $711,485. Consultants are used for grant matches and ongoing zoning work. The department is working on signage code, solar updates, and other minor ordinance changes. The council discussed the need to let recent zoning changes settle but also the importance of proactive work. No enhancement requests were funded.

• CFO's Office (Bob Ekstrom): The CFO's budget increased by about $19,000 due to annualized salaries and elimination of a vacancy reserve. Other line items are flat.

• Employee Benefits: The AFSME contract settlement ($953,000) will be distributed to departments later. Retiree severance pay is budgeted in a reserve. Health insurance increased by $4.1 million due to higher working rates and restoration of a prior cut. The city is self-insured with a medical claims trust fund. The pension contribution is $47.3 million, with a planned increase of 8% annually. The council discussed extending the funding schedule to 2036 or 2040 to reduce annual increases. The city is exploring options with the retirement board. Snow removal budget is $300,000, which may be insufficient given recent winters. Unemployment compensation jumped to $722,000 due to 36 potential layoffs. Workers' compensation includes a $300,000 settlement for one case.

Key Outcomes

• No votes were taken during the hearing; it was a discussion and information session.
• The council will consider budget adjustments and potential cuts in future meetings.
• The CFO will provide written breakdowns of health insurance increases and unemployment compensation assumptions.
• The council will request information on the workers' compensation settlement.
• The library's budget cuts may lead to reduced branch hours and risk losing state aid.
• The pension funding schedule may be extended to ease annual increases, with a decision expected after the next actuarial report.
• The council expressed interest in potentially increasing parking enforcement positions if the enterprise fund can sustain them.
• The cable access department will explore legislative solutions for funding.
• The tourism department will continue to focus on sustainable tourism and seek grants.