All right.

Good evening, everyone.

I'm Jake Wilson.

He, him pronouns, Councilor at Large, and your finance committee chair.

It's six o'clock on the dot.

And I'd like to call to order the Monday, November 10th, 2025 meeting of the Finance Committee of the Somerville City Council.

First, I get to read the magic words that let us do this all here on Zoom.

Pursuant to chapter two of the acts of 2025, this meeting of a city council committee will be conducted via remote participation.

We will post an audio video recording and a comprehensive record of these proceedings as soon as possible after the meeting on the City of Summerville website and local cable access government channels.

Clerk, could you please call the role to establish quorum?

All right, this is roll call.

Counselor Mbaugh.

Present.

Counselor Burnley.

Counselor Klingon.

Counselor Scott.

Present.

Chair Wilson.

Present.

All right.

With that, we have four here, so we do have quorum.

And Counselor Burling let us know that uh he will be joining us here shortly.

Uh all right.

Uh folks, when we've taken up our seven item agenda uh in the order posted tonight.

We're gonna start with the first item, the minutes.

ID number 25-1612, approval of the minutes of the finance committee meeting of October 21st, 2025.

On the minutes, any discussion?

Seeing none, uh, the items laid on the table to recommend approval with a single vote at the end of tonight's meeting.

Um we uh don't have director raish with us for our second agenda item.

So we're gonna keep in committee uh ID number 25-1451, Director of Infrastructure and Asset Management conveying the draft uh the draft combined sewer overflow plan.

Uh hopefully Director Rage can join us for a subsequent finance committee meeting.

Um bring us to our third agenda item, ID number 25-1585.

The mayor requesting approval to pay prior invoices totaling 23,109.33 cents using available funds in various Department of Public Works accounts for various services.

Uh, we have DPW Commissioner Jill Lathan with us.

Uh Commissioner, please tell us about this request.

Good evening, uh committee.

Thank you for joining me.

I'm Joe Lathin, Commissioner DPW.

So we have just a few prior invoices.

We have the um primo grants, uh, which is the 575 34.

This is uh basically because this company kind of sold ownership.

And so we closed out that BO and they changed ownerships, and then we had some upstanding invoices that we need to pay for that.

Uh the next one is the uh impact fire alarm invoices.

We have contacted this company several times throughout the year to get their last bills before the end of the year closing.

They were unresponsive, and then of course, as soon as we closed on the PO, they decide to respond to our multiple emails saying that they had a bill for us.

Um, and then this last one, this direct energy, which is 18,827.17 cents.

So anytime we have these utility bills or gas bills, um, it's always going to be kind of we're gonna do our best.

Those bills kind of come in.

We do our best to estimate when we can close out that BOM every year.

This utilities and gas are always going to kind of come in late because it's either overprojected or underprojected.

So um, this is a prior year invoice that we need to pay for that.

This is utility bills are always going to be in flux because it's available costs that we do our best to estimate at the end of the year um the carry all as much as we can, and then we get invoices and trying to you know continue to clean up and catch up on so that is where we are for those particular items.

All right, thanks for that, Commissioner.

Uh, any discussion by the committee.

I think not to speak on behalf of the committee.

I'll just say for me personally, I appreciated that uh that explanation.

That's what we always ask with prior invoices.

What happened?

Uh, you know, why did it happen?

Uh, you know, what are we looking to do to try to keep it from happening again?

I appreciate that explanation.

So, not too many.

We're gonna lay this one on the table to recommend recommend approval here at the end of the meeting.

Thanks, Commissioner.

Thank you.

Gonna take us to our fourth agenda item, ID number 25-1584, the mayor requesting approval to accept and expend a $3,000 grant with no new match required from the Somerville Cambridge Elder Services to the Council on Aging for Senior Transportation.

Uh, we have I see Director Ashley Speliotis from the Council on Aging with us.

Uh, director, please explain this request.

Sure.

Good evening, everyone.

Um, like Councilor Wilson said, Ashley Spalonis from the Council on Aging.

Uh, this is a yearly grant that we receive from Somerville Cambridge Elder Services.

It's part of Title III funding for direct transportation.

And we use this um small grant for emergency transportation needs directly to the council on aging.

So that's rides for seniors to visit with our social workers.

If they are experiencing food insecurity to come here for emergency food, um, or uh sometimes if there is no other way to receive services here, we will use this uh grant for those services.

Thanks, Director.

Welcome.

While I wait and see if colleagues have any questions.

I'll just ask so just to clarify this is totally separate from any taxi to health or any of the senior taxi programs, right?

Exactly.

Yep.

The taxi program right now, the senior taxi program is to get people two places.

So to the grocery store, pharmacy, farmers market, um, food pantries, or routine medical appointments.

But this grant is solely used to get people to the senior center.

All right.

I appreciate that explanation.

Colleagues, we have any any other questions on this one.

Yes, Councilor Mabaugh.

Excellent use of funds.

Agreed.

Here, here.

Uh anything else on this one, colleagues.

Okay.

Uh, we're gonna lay this one on the table to recommend approval.

Director, thanks for coming and hanging out with us tonight.

Thank you.

It's gonna take us to another uh another grant acceptance.

Uh, fifth agenda item ID number 25-1600.

The mayor requesting approval to accept and expend a 1,10,000 dollar grant with no new match required from the Massachusetts Gaming Commission to the Office of Strategic Planning and Community Development and Police Department for the development of the Union Square Plaza and Streetscape phase one.

All right, we have uh finance director Alan Inasio from OSP CD with us.

Uh Director Anasia, you want to explain this one, please?

Sure.

Thank you through the chair.

Uh, as I believe was in the uh body of the council item.

Uh this is a minor typo correction, uh clerical correction.

Uh this originally went before you, I believe, a few weeks ago.

Um, or uh late summer, early early fall.

Uh the original order was missing 10,000.

So we have replaced the entire order in hopes that you will reapprove it with the additional 10,000 corrected.

All right.

Thank you for that.

Colleagues, discussion.

Mr.

Chair.

Councilor Mavaugh.

You know, with directory now.

So again, you know, it's always like it's hard to reject any of his any of his projects.

But I guess I'm curious as to most of these projects are always around, you know, like mitigation, you know, for like the impact of the casino around is some of the assembly square and oh why not, you know, I-93.

So um I'm like just a little bit of curiosity.

I'm wondering like, you know, if there are any new study or findings that have been made to show that the casino impacts are reaching union square now, Director Inaso.

Remember the chair.

I I don't know that there's a direct study um that um would analyze that specific question.

Um, you know, I would I would turn to the mobility department um and the PSUF department who are working to on the larger project that this is going to help fund the design for.

Um, I know that that development is you know relatively short distance away.

Um and kind of leads right into Washington Street, which leads to little interchange connectors.

So uh proximity-wise, it's it's not that significantly much further.

Um, and there is, you know, expected to be a larger increase in population and um commercial activity once Union Square is all built out.

So um that would be my best guess, but um to be honest, I don't think there's been a formal study or analysis of that question.

Okay, thank you.

I think uh uh I almost said Chairman Scott.

Well, I think actually let's say Chairman Scott now because I'm talking to the chairs, actually the mayor elect.

So Chairman Scott.

I'm not recognizing you as in a uh chair to the chair.

I think Chairman's gonna have something to discuss.

All right.

Vice Chair Scott, you've got the floor.

Uh thank you, Mr.

Mayor Elect.

Um, I just I I said my piece on this when it was before us last time.

Uh, you know, I mostly just uh disappointed to see so much of this going to police overtime as opposed to the design uh and implementation of the Union Square Streetscape plan, but uh happy to as we did last time approved this one with the typo changes.

Uh you know, move to approve, sir.

All right, with no other discussions seen from colleagues.

Uh, we're gonna lay this one on the table to recommend approval.

Uh Director Nassi, I think you're sticking around for another one, though, I believe, right?

Yes, I have a couple of colleagues, but I'm happy to kick it off.

Absolutely.

All right.

Well, while they jump on camera, we're gonna go to our next agenda item.

That's our sixth one.

ID number 25-1560.

The mayor requesting approval to create the community benefit stabilization fund and accept a payment to the fund of 3,946,742 and 98 cents from the community benefit contributions outlined in project development covenants.

Uh so we have the aforementioned director Inacio, and I believe we have our director of finance Ed Bean as well.

There he is.

Um, whoever wants to tell us about it, take it away.

Uh thank you through the chair.

I guess I'll kick it off since I'm on camera.

Uh, this is uh continuing our efforts to uh clean up and um you know make sure we have all our appropriate stabilization funds um in good order.

Uh these again, as I came before you a couple weeks ago on uh on a couple of the infrastructure stabilization funds.

Um, you know, a lot of our larger uh development districts, transformative district uh districts are having their large scale projects reach a point where that they've been triggering a lot of these payments.

Um several years ago when Union Square was the first one sort of uh coming up.

Uh we created a Union Square stabilization uh fund, which we as is in accordance with the the Union Square uh development covenant.

Um so for lack of a better um place, these have been set kind of uh sitting there, uh the most recent ones.

And so now it's time to per the official community uh benefits ordinance, move them to their proper uh a generalized community benefits stabilization fund for all of the other um uh master master plan projects that are now triggering uh these payments.

So um with that, we ask for uh acceptance of this community benefit stabilization fund and any additional questions you may have.

All right, thanks for that, Director.

We got a cue here.

Uh Counselor Klingon's first up, followed by Councilor Bond, then Councillor Scott.

Counselor Clay.

Thank you, Mr.

Chair, through you.

So and I think I heard you say that this is for mostly um master plan covenants, because like I just think about some of the stabilization funds that are very sort of area specific.

I always talk about the like Lowell Street stabilization fund for traffic mitigation.

Um things like those won't be rolled into this, will they or no?

If if through the chair, if something is if a something is from a specific project and is specifically called out in a specific zoning condition, then that is held in a unique stabilization fund solely dedicated to serve that zoning condition and that and that zoning or planning board approval.

Um, these are for you know the the larger projects that have either uh master development covenants um or you know, think your assembly squares, your point in yards, your US2s, those those larger transformative district projects.

I figured so three, Mr.

Chair.

I figured so I just wanted to get that clarification on record just because there's been a lot of interest in stabilization funds ever since uh my colleagues brought up, you know, uh having a list print uh sent to us.

And so um, but this is like you said, basically for the the community benefits agreement ordinance uh to service that.

So yeah, no further questions.

All right, thanks for that.

Uh Councilor Bond and Councillor Scott.

Actually, uh Director Bean, did you have a Oh, just I just wanted to add on to that, Mr.

Chairman, that the enabling language here mirrors the community benefits ordinance.

And so it's very broad-based.

So the um the the receipts can fund human services, the arts, cultural enrichment, sustainability, public health, preventing and mitigating commercial and residential displacement, housing, educational programs focused on science, technology, engineering, and other areas of community enrichment.

So that mirrors exactly the language in the community benefits ordinance.

All right, thanks for that.

Councilor Baugh, you are up, and then Councillor Scott.

Uh thank you, uh Chair.

I guess I'm just curious as to um is this like from several developers?

Like this is oh, this is from like one developer.

Like can you I'm sure that I didn't actually spoke to you, but I want to get some clarification there.

Through through the chair, yes.

There currently, right now is one very specific uh community benefit stabilization fund set up, which is the Union Square Community Benefit Stabilization.

That is tied to a very specific set of community um uh uh community benefits payments, mainly through the US two, and that has its own specific covenant and civic advisory committee um at the time.

And so those payments we've been utilizing, we've come before you for appropriations.

And now that these larger projects are triggering payments and we've made some collections um, you know, per the larger uh general community benefits ordinance as Mr.

Bean was saying.

Now we have to create a summerable wide or a or or a more general broad-based community benefits ordinance to accept all of the additional payments from the other development districts.

Yeah, I apologize.

You still got report yes.

Councilor Bob, we can jump to Councilor Scott and come back to you.

Give it a second.

Councilor Scott, why don't why don't we jump to you and we can come back to Councilor Mabaugh uh at a better moment?

Yeah, that sounds great.

Thank you, Mr.

Chair.

Um so Councilor Mbaugh was kind of uh starting down a bit of the path that I was curious about.

Normally, when we get a uh a big stabilization fund uh creation like this, uh uh we've got a little bit more idea where these funds are coming from.

Is this one single large payment that's coming in?

Is this a combination of multiple payments and a transfer from another stabilization fund?

I guess what what is the source of the 3.9 change million dollars?

Sure, through the chair, through the chair, it's both.

Um it is we will be repurposing some of the funds that we've been holding in the Union Square Community Benefits Fund, which was a community benefits fund, which we were seeded into, but you know, didn't necessarily fit the mandate to appropriate from because that was specific to the Union Square um community benefits project that was also jointly run with the civic advisory commit uh committee, which Mr.

Galligani can explain more.

Um, and then there's also receipts that we've recently received that um may have been in a pending or suspension account.

And so now we need to formally create the general uh stabilization fund that, as Mr.

Bean said, will follow the general community benefits ordinance that has been passed.

Okay.

Uh so and they do come from multiple, they have come from multiple development district uh projects.

Okay, so just to make sure I've got this clean.

We've been uh sticking checks from developers on community benefits payments into a desk drawer, and this is just uh uh creating the proper uh folder for them to sit in uh to a certain extent.

Through the chair, digital accounting system desk drawer, yes.

All right, thanks.

I'm very analog and old.

Uh I also though uh I guess this the first part of what you said uh said that the Union Square community benefits stabilization fund, which again is very constrained in terms of its uses, um, is sitting there, and a certain chunk of this $3 million is coming from there and going into this new community benefits stabilization fund.

Is that correct?

Through the chair, no, we've for lack of a for lack of a what we're going for the lack of the exercise we've been missing that we're going through tonight, um, to not leave checks in a drawer.

We have been depositing them in the Union Square Community Benefits Fund as we work through developing the ordinance, and now we are ready to create the community benefits, the general community benefits stabilization fund.

Oh, uh wow.

All right, community benefits ordinance was a while ago.

So you're saying that basically the as we've received payments, they've been parked in the Union Square Community Benefit Stabilization Fund.

Correct.

Okay.

So do we know how much money uh went into the Union Square Community Benefit Stabilization Fund that was not from Union Square um Plan Development Area uh project through the chair?

We do that that is the majority of that is the the balance we're putting before you now.

Okay, well, I just I don't have a piece of paper in front of me, uh, Deputy Director Inasio.

I don't have any way to know where these funds are coming from or how much they are.

Uh and for that matter, how much of the Union Square community benefits fund is going to be depleted uh from this, right?

Because there's also been you know, uh there have been various appropriations out of that fund.

Uh, and I mean, I guess I don't want to be in the referee's seat saying how much that gets credited versus the union square specific funds versus uh citywide funds and all that.

I I'm just trying to understand this transaction because it is a very large uh transaction here, even if it's internal bookkeeping, uh it's it's something that I feel like I need to understand.

Um I guess maybe Director Bean or if you can help me maybe read me out on this or yes.

So there is a spreadsheet.

So uh director Anasio can supply a spreadsheet of a breakdown of all of these funds.

Oh not all of the Union Square stabilization fund is going to this new one, a portion thereof.

And uh I you know, I'm looking at it right now.

I don't know if you can call it up, Alan right now.

If I I can't, I sent it to the AGA team just to go through the official channels, but I actually I absolutely can pull it up.

Um give me one second.

I don't know if you want to continue on with any other questions, but I can I can pull it up in short order.

I'll just anything that's pulled up, please.

Let's make sure that gets sent to the clerk uh to get entered into the record.

Also, I want to acknowledge Councillor Burnley has joined us.

So, Clerk, please uh note Councillor Burnley is present.

Got it.

Thank you.

And then Councillor Scott, did you on this point do you want to add in before we toss?

I want to give it back to Councillor Rabat.

I mean, this is kind of the the big question, yes, chair.

So uh I might have follow-ups, but I'm happy to uh yeah, honestly, uh you know, this is I imagine it's gonna be a lot to digest and a lot to parse.

Um, you know, so uh as much as I understand this is just a standard bookkeeping thing, I kind of do want to understand it before I before I vote for it.

Uh so maybe the right thing to do is to have this documentation uh sent my way or sent to the entire committee, and then uh perhaps deputy director and Asha and Director Bean and I can have a conversation in the coming week uh to figure out uh to make sure I'm I've got it all sorted.

Um, counselor, there's always the option of discharging this one without a recommendation, so that if people uh you know want to sink their teeth into this one and then and go deep on it, they have that opportunity before you know before Thursday night.

Uh yeah, that's one way to go.

All right, I appreciate it.

I'm I'm gonna let you I'll come back for we'll come back to you.

I wanted to throw it back to Councilor Bob because he he was he did have the floor when we uh when we jumped away to you.

I want to bring it back.

We promised we would, and then we'll go back to you, Counselor Scott.

Councilor Mabaugh.

Uh thank you, Mr.

Chair.

You know, I don't I don't have the most beautiful voice, so but I'm glad that you're sticking it back to me.

I think Chairman Scott, uh Council Scott was really also touching to like this basis where I was I was getting at because I I know like uh Dr.

Garagani and I we were catching up briefly about other stuff, and then I kind of like asked about this where it was coming from, where this money was coming from, and uh and because when I saw it, I wasn't sure if you know if this was some free cash transfer from you know, like last year or this year into next year.

But I guess even the fact that it's coming from developers, and one of the reason why I was asking all these other questions, whether it's like one developer or several developers, you know, whether it's for new project permits or certificate of occupancy or maybe linkage fees or conditional planning, like because since I sit on the job creation and attention trust, I want to know like, hey, you know, is this voluntary, you know, like the programs that have been vanishing in front of me that we need to fund, keep funding, like really like equity-based programs, like it's just vanishing.

So I'm wondering, you know, if this is like a very specific funding, like so.

Do we need to have a criteria like those city council need to have it in posed like some measure about like okay, this is you know, we want to make sure that this money is spent in this way to accomplish you know its its purpose, the mitigation purpose for uh why it was created, or if not, then we can now start to not meddle around to say okay, there are things that we want to do, you know, with these funds, there are other needed uh uh programs that need to be funded and or whatnot.

So I guess um, but I wasn't sure if if that is like within that purview, like if if it's generic, we need to know if it's like specific, then okay, we need to know how specific it is, where it's coming from, and all now.

That is that's where my curiosity is if anybody can really like just help me get framed out for me.

That will that would be super good.

I'll be super grateful.

Who wants that one?

Director Anasio, Director Bean.

Uh thank you.

Uh Director Beaner, Director Gar Galligani, jump in whenever you'd like.

I have the spreadsheet available to share, but if uh director bean or director Ghana Gali have anything to say in advance, I'm I'm happy to do through.

I'll take a first crack at that, and Ed can uh can correct me when I go astray.

And can you can you identify yourself for our clerk, please?

Most certainly uh Tom Galligani, I'm the executive director of the Office of Strategic Planning and Community Development.

Thank you.

We're talking about money, and Alan will show the spreadsheet at some point.

It's about six different large development projects have contributed to this money.

And each of these projects had project-specific covenants that articulated a whole series of voluntary contributions.

We're just talking about one of the buckets of money, one of maybe uh up to four buckets with each of these different six different projects.

Um, and typically we use generally the same wording, but in each covenant, it might have been different, slightly different.

But generally speaking, we're talking about instead of physical infrastructure, we're talking about social infrastructure.

So all kinds of uh projects that could uh be described as community benefits that would be job training or um affordable housing or social service supporting different social services.

When I look at all six covenants, they generally talk about the same kinds of things.

So if to answer your question, what can we spend the money on?

That's what we can spend the money on.

Those kinds of topic areas.

We go into some detail in some of the covenants and other covenants, it's more general.

And some covenants we use different wording.

We don't use the word community benefits because as these covenants evolved over time, we use different um standards and different definitions.

Um, I'm just gonna answer a question that was brought up for before too, and that uh basically all the money that has been paid to date for union square, the union square project specifically, um, has been spent, and those have been allocated by the council on various different occasions.

They've gone in either one of two places, contributions uh or funding programs run by SEC, those are mainly job training programs or job readiness programs, and contributions and checks sent to union square main streets for small business support in Union Square.

And it's funny how it actually just works out.

The money that's come in, all of it pretty much has been expended.

Maybe I'm off by uh you know, a couple hundred, couple thousand, uh, but it's basically been exhausted.

The union square money so far has been exhausted and has been sent to uh projects and programs that have benefited Union Square.

As you as the Union Square development project continues and new buildings are built, there'll be more money that comes in.

And at that point, we'll make different decisions.

We collectively as a community will make different decisions about how it gets spent.

Hope that answers a couple different questions that I've heard.

And I'm apologize for showing up a little late.

Track was a little uh hairy than I expected.

No, thanks for that.

Uh Councilor Bao, you still have the floor.

Any anything else?

No, thank you.

That's that's helpful.

That's helpful.

So and now I know that I can squeeze some of that funds for my post-secondary education program.

Thank you, Dr.

Galligani.

I appreciate that.

Director Nassi, did you want to add anything on that before I give it back to Councillor Scott here?

I just wanted to say if it helps advance the conversation, I'm I'm ready and able to uh screen share the document.

If I can do so without going through IGA, I'm not quite sure.

I haven't been asked to screen share before, but I can if uh I can't if that's the protocol.

The the yes, uh clerk, could you allow Director Inacio uh to share his screen and then uh we'll just ask to make sure that the that the document being shown here is entered into the record uh with this meeting.

Uh Director Anasio, you should be able to just share your screen.

Great.

Let me just find.

And so you will see.

I just want to point out um I did color code this.

Um so the payments in green are the payments that are not attributable to US two and will be and are being moved tonight.

The payments in yellow are the payments we have already collected for the existing union square civic advisory community benefits fund.

And the two buckets at the bottom, as Mr.

Galagani mentioned, are the essentially three buckets of previous appropriations we have made out of this fund.

And also, as Galagani, uh, Mr.

Director Galligani mentioned, there most likely is a slight variance um between what was collected and what was appropriated, and that is mainly due to um at this point, just interest received on the stabilization fund.

Counselor Scott, I'm gonna guess you're about to ask the question I might be about to ask about the yellow versus green and the totals.

I mean, I'm happy to let you take a swing, sir.

I'll ask one quick question that I promise I'll get back to you.

So it is a reasonable to say the ones in yellow roughly total that the deduction totals there, and the ones in green roughly total the um revenue totals minus that amount.

Uh the green totals, the green buckets total the amount that is before your appropriation tonight.

Yep.

Okay.

Thanks.

Counselor Scott.

Uh thank you, Mr.

Chair.

So uh this is this is why I was hoping to see this.

Now, if I just do the math here, uh it you're right, those yellow ones add up to that uh roughly 1 million down at the bottom that have been deducted.

Uh so I appreciate that uh narrative from Director Galligani.

Uh, but when you do one million, when you do 4.6 minus one, uh that gets you to 3.6.

And we are looking at transfer, well, closer to four million dollars here.

So I'm curious where the rest of the funds are coming from.

Hey.

Uh again, I'd have to check the interest earned um and anything in pending, but these are the developer payments we have received, the direct developer contributions we have received.

They should equal 3.96.

Okay.

So uh in that case, this is and these are all uh revenues that were brought in and deposited in the union square community benefits uh stabilization fund.

This transfer coming out, uh at least according to what we see in front of us, is actually uh if it was possible to do so, would leave the Union Square Community Benefits Stabilization Fund at a negative balance of about 300k.

So let's hope there was enough interest to cover that.

Uh, but I can't I can't see a way in which this doesn't zero out the existing Union Square Community Benefits Stabilization Fund.

No, that that is correct.

Almost everything that has been appropriate uh received as a developer contribution payment has been appropriated out for the three buckets um outlined below.

Okay.

So I think Mr.

Chair, the reason I was having a hard time understanding all this is because normally good because this is uh functionally a request of a uh transfer from the Union Square uh community benefits stabilization fund to the newly created Somerville community benefits stabilization fund uh in the amount of functionally its entire balance at the moment, and that would normally look like a request for exactly that.

Uh I was confused about the language here uh to create a fund and accept a payment to the fund as opposed to uh requesting the council's permission to transfer from one stabilization fund to another, which is I think the legal form this this generally follows.

Um so I I think I've got that correct now.

Is is that is that an accurate characterization, Deputy Director That is correct.

We are requesting to open a new fund with payments we have received.

It is sitting in an existing stabilization account, so I would defer to Director Bean as to the uh protocol or the council procedure on that.

Well, look, I don't think anybody's gonna take us to court on it.

I just want to understand what the mechanism uh here is.

Uh Director Bean, I'm sorry, you're seeing muted it it conforms with the ordinance.

So the ordinance speaks of a one consolidated fund.

So it it in accordance with the the ordinance we can reclassify and do that without any formal transfer per se.

Huh.

That's so wait, the ordinance overrides the state law requirement for the that's not a the state law refers generally to transfers in the general fund.

Okay.

All right.

Well, I just want to understand what the final result is here.

The final result is that there will be a new community benefits fund that's more broadly applicable in the city.

Um and that if we had had that fund, uh that stabilization fund created a year ago, uh then these these funds might have already been deposited in them as they went.

Although I guess we've been collecting these as far back as uh 2019, it looks like.

So yeah, we would have needed to create this earlier, but uh presumably as these payments would come in, they would have gone to the general one.

That's understandable.

Uh, but the net result uh once we're done with this bookkeeping adjustment is that the Union Square Community Benefits Fund is going to be empty and unusable until the next uh scheduled payment from US2 comes in, which is going to be based on their progress on the project.

Is that right?

That is correct.

Through the chair, that is correct.

All right.

Well, thank you.

Uh I think that's gonna be uh source of some concern and discussion on the Union Square Neighborhood Council.

I'll be sure to um talk to them and loop them in on this.

Uh it's the Mr.

Chair has a copy of this gone to uh the committee as well as to the clerks.

A copy of this document being shared here.

Uh that's a good question.

Through the chair.

Um I I will be shedding this document uh shortly with the committee and then uh all right.

Well, I appreciate that.

And uh if I guess at some point uh Mr.

Chair, we could find out where the other 360,000 uh came from that's uh unaccounted for in this transfer.

Uh I I think that's a I think it's the interest 347,000 interest.

And I'll ask Mr.

Nassio to go back.

Is it possible that 4.6 million does not include or that that that uh it looks like it's included in that, but is that the interest income is an addition to the 4.6 million?

That uh that the uh sum that the sum there is of uh up until the sell above it, not including the sell above it.

Uh yes, exactly.

I have to go through uh through the chair, I will go through review the the actual spreadsheet, not the PDF version.

Um there are a couple different sources of interest or investment income.

Um, and I will provide a revised I can provide a uh uh revised spreadsheet to IGA to share with you all.

Absolutely.

Excellent.

I think that would be helpful in unpacking some of the mystery here that uh that remains.

Uh colleagues, any more discussion on this?

Yeah, I mean, Mr.

Chair, I just um I continue to not love uh having to do back the envelope math uh during a during a uh meeting like this.

So uh might I ask that we um keep this one in committee and I'm sure we're gonna have another uh finance committee before the end of our uh before the end of our session, correct?

Uh we will definitely have another finance just getting ready to plan that one uh in a couple days, actually.

So yes, we will.

Uh all right.

Then I I think I'd like to make sure we get the math right.

Um and maybe we can just keep this in committee and hopefully it'll be a uh quick rubber stamp next time we come through.

Uh Director Singh, did you have a uh comment on that on that particular plan or anything in general here?

Uh through the chat, yes.

I just wanted to share something on that particular point.

Um as you uh the agenda for this Thursday City Council meeting has been posted, and you'll see that there are two requests that have been submitted by the administration to appropriate funds uh from this community benefits stabilization fund uh for a variety of food security initiatives.

Um so if there are outstanding questions, um uh it would be a request that um we can have um that you reach out to the administration so we can resolve those questions and answer anything on Thursday at the city council meeting.

Council Scott, in light of that update and the urgency of the uh food security situation, how would you feel about discharging this without a recommendation?

Uh and trying to do that work here, make sure everyone's in a good place by Thursday.

Uh just you know, in light of what we're up against here.

Yeah, you know, Ms.

Chair, I'm I'm never a fan of uh having the administration's uh emergency become a crisis on our part, but uh given that we're all trying to get food into our neighbors.

Um let's uh I would I would though ask if uh perhaps uh deputy director Ignacio uh our director being can uh uh reach out to me.

I guess tomorrow's a holiday, so on Wednesday to make sure we have a conversation about this.

Absolutely.

All right, thank you, sir.

All right.

So colleagues, the plan here then is to actually let's take a vote on that then to uh discharge.

I'll move to discharge without a recommendation.

Uh clerk, could you please call the role on that?

All right.

On item number six to discharge this without a recommendation.

Counselor Mbaugh.

Yes.

Counselor Burnley.

Uh Councillor Klingon.

Yes.

Councilor Scott.

Yes, please.

Chair Wilson.

Yes.

All right.

With that, that is all votes in favor.

All right.

Thanks for that.

Uh and those of you who uh were sticking around for that.

Thanks for coming and running us through that.

Look forward to to it, you know, the explanation that we're asking for, uh, those exact numbers of how we got to that point.

It's gonna bring us to our final agenda item tonight.

ID number 25-1599, the mayor request approval to create a housing assistance stabilization fund under the provisions of Massachusetts General Law, Chapter 40, Section 5B.

Uh I see we still have uh Director Bean with us, and I think we have uh Director Ellen Shachter from Housing Stability as well.

I see we have Director Galligani also.

Um who wants to tell us about this request.

I guess I'll start.

Um having conversations with Director Schechter looking at long-term situations here.

Uh I think we're all agreed about the importance of this situation, uh housing assistance.

Uh seems to me that um the proper course of action would be to create a housing assistance stabilization fund and begin seeding that.

There's no money being appropriate here tonight.

Just want to get something on the books.

And um the need for that.

I I'm sure Director Schechter can uh speak on that.

Um and uh tell us why she thinks it's important.

It's also uh, you know, I think it's important that the general fund closes out on June 30th.

A housing stabilization is multi-year.

So it's from an operational perspective.

It's gonna be a lot easier to uh execute contracts um and uh no need to close out encumbrances at year end.

Stabilization funds are also interest bearing.

So when we get some money in there, we'll be earning interest that can be used.

So uh, you know, I would turn it over to um director Schechter to talk a little bit about that.

Great.

Thank thank you so much.

And to the chair and other city council.

I see Councilor Mabaugh has his hand up, but should I finish first, Councillor?

Yeah, uh please please identify yourself for the clerk also let you explain explain the item.

Counselor Mabaugh is just in the queue.

Okay, thank you so much.

So Ellen Sachter, director of the Office of Housing Stability, and to the chair and to the other finance committee members.

Um really, really glad that this issue is coming before you.

As you as you all know, I have a number of programs that relate to either temporary rental assistance or ongoing rental assistance through our mass municipal vouch through our municipal voucher program and a couple of things.

We have some of those programs have been funded through one-time appropriations of free cash or other things that have not all been funded each year through the general revenue.

It's also extremely difficult to have contracts for rental assistance programs that end in June, where we can't start the new contract until after the contract is drafted and after you have all approved a budget.

Many of our programs have landlords that were paying every month for some continuous period.

And it is really, really difficult to maintain the continuity of those programs when we are waiting after the end of one fiscal year until a full appropriation, everything's worked out, and we can do a new contract.

So a stabilization fund at this point would do a couple of things.

In particular, the two programs I am most concerned with are called our Flex SAHTF program and our municipal voucher program, each of which provide ongoing rental assistance for certain periods of time in order to keep people stably housed.

So at this point, we I am very pleased that I think the administration's going to be looking to see if there are any additional funds that can be put into these uh funds to ensure the longer term stable uh stability of these programs and also just to allow us to contract as needed over time and not not have to wait until after the appropriations for each year in order to run these contracts.

It's just very, very disruptive, disruptive to rental assistance programs.

All right.

Thank you for that.

Councilor Mavar, you were first up.

Thank you, Chair.

Uh good to see you, Dr.

Shakte.

You know, I appreciate that editoria.

You know, it's you're always doing good work, and uh I cannot of us, you know, emphasize like how nice it is.

And when I looked at this, uh honestly, I'm mostly I'll just throw a couple of things out there and then just help me piece it together because um yes, this is a new uh uh funding source for this program.

But since I sit on the affordable housing trust, you know, it appears to me, you know, to be like I think it are this part of this would it be first like how would the money are there competing programs or like are we um so the chair, I think I understand the question, and I think it's a good one if you would like me to help frame and I think possibly Director Gallagher uh Anasio or um Finance Director Bean might be able to answer this.

Uh might be this as well.

Well, because I just want to make sure that you know, yeah.

If the you know, like the source of the revenue, you know, how would it be managed?

Could it be added to the affordable housing trust as a tech category for his grants and programs, or like you know, they I think you get where I'm going to so please just kind of like differentiate this tool for me and then bring it home.

I'll say what I know and then would hope maybe that that um that finance director bean or or director Nasio might be able to fill in.

But what I understand is that currently, right now we have funding that exists that sits in the Affordable Housing Trust Fund for both the MVP program and for the Flex SAHTF program.

I think the purpose of this stabilization fund is to be able to look at other sources of revenue that might exist right now within the city, either from other stabilization funds, possibly at some point short-term rental dollars to help us have funding for these programs to continue beyond this current fiscal year.

Right now, the funds that we have in uh the Affordable Housing Trust Fund, for example, for our Flex SAHTF program are most likely going to be expended by the end of this fiscal year.

Um, and since it hasn't been funded traditionally through general revenue appropriations, and these are multi-year contracts that we typically have.

We're really trying to figure out how do we keep these programs funded, what sources of money might be available to help us to continue these programs.

I'm not sure and would defer to the other directors.

Um, if we do put this money at some point when it's ready, would it then be transferred into the affordable housing trust fund?

And my guess is it'd be yes, if the purpose of those funds is for our flex SAHTF or MVP, but it is also possible, for example, we have rental assistance contractors who are funded through the end of this fiscal year, no funding afterwards.

It might be that some money comes out of the stabilization fund for that purpose as for that purpose as well.

But I think at that, I will turn it over to the to Director Bean or Inasio to add anything uh to that.

I might not be aware of.

I like the director.

Director Bean.

So as uh Director Shachter mentioned.

Um if we remember we had the city with your help um administration adopted the community impact fee on short-term rentals back in the spring.

So the law says that 35% of those monies must be dedicated to either affordable housing or infrastructure projects.

With a legislative with a vote of the legislative body.

So we would intend to come before you with a vote to dedicate 35% of those monies to this stabilization fund.

The other area mentioned is repurposing of existing stabilization funds.

So we're in the process working trying to work out um the status of some of these dormant stabilization funds.

And that's a that's another part possible source here to repurpose that and and see the um the this new stabilization fund.

And then of course, you know, what we've listed in enabling legislation is you know, a number of other sources can be used to fund this um stabilization fund via grants or free cash or even develop a mitigation.

So you know the intent here is to get this on the books, and we'll start finding some sources to appropriate to it.

And uh thank you, Dr.

Bean and Dr.

Shakta.

So I guess would it would are we gonna create the new committee similar to the Affordable Housing Trust?

You know, to manage this.

Um my understanding.

I don't I don't know, maybe Director Bean.

I don't know if you want to answer this.

My understanding was uh was a no, and that, but that these funds would be going into programs that we are currently running to keep them funded.

Um this is another entity, yes.

I mean, uh we don't want too much bureaucracy here either as well.

Want director Schechter to be able to spend that money, get it in there, and of course, you know, not disparaging the good work of the affordable housing trustees here, but I I think this is uh this is gonna be reserved for Ellen's uh programs during the course of the fiscal year.

We want to come right back to you, appropriate the money and uh be able to use it.

Okay, no, I mean I anything for Director Shacht.

I just want is for like again.

So what I'd expect that sources for you know the revenues, you know, uh for this fund.

Well, as I suggested, I think we're gonna come back to you on the community impact fee for short-term rentals.

That's a start.

Uh we're certainly looking at repurposing some of these stabilization funds, not only the dormant ones, but I've also been talking to um Amanda Williams about the racial and social justice fund.

There may be some money's there we can repurpose.

We've done that already for uh affordable housing purposes.

These are potential sources.

We'll see how things go throughout the fiscal year with free cash.

We'll see where we stand.

There's there's some other issues which we'll talk to the the new mayor about soon.

Um, and um and plan some things out.

So there's other potential sources as well.

Gotcha.

Thank you, Chad.

Thanks.

I appreciate that.

Thank you, Counselor.

Counselor Scott.

Uh thank you, Mr.

Chair.

I'll I'll keep my snark to an absolute minimum.

Uh this is a uh this is uh basically just a bookkeeping uh measure that'll ensure that Director Schechter can keep delivering on the programs that she's offering that are awkward across uh uh annual budget cycles that don't line up.

So I think this is a fine way to go about it.

I think this is actually uh a much more transparent way for folks in the community to be able to tell just how much the city of Somerville is actually voting towards uh housing stabilization.

So I think this is a uh a great uh tool.

I think it's the right tool.

I'm actually kind of just shocked we haven't done this earlier.

Uh but uh appreciate it.

The best time to make a process improvement is right when you notice it.

So uh that's awesome.

Um and I will take my top 10 list of responses uh to the rest of the discussion and hold that for the after committee meeting.

Thank you with the word two counselor.

Anything else on this, colleagues.

All right, we're gonna lay this one on the table to recommend approval as well.

Uh that brings us to the end of tonight's agenda.

Uh, and thank you to staff for uh for coming and walking us through all this tonight.

Thank you so much.

Uh so at the end of the agenda here, uh, counselor Klingon uh moves to recommend approval of the items on the table and to adjourn.

Uh could the clerk please read the agenda item numbers uh that are up for recommendation approved and call the roll on recommend approval of those items and adjournment.

Yep, on adjournment and recommending approval for items one, three, four, five, and seven.

Councilor and both.

Yes, please.

Councillor Burnley.

Hi.

Councilor Klingon.

Yes.

Councilor Scott.

Yes, please.

Chair Wilson.

Yes, please.

All right, that is all votes in favor.

And it is 6 55 p.m.

All right, thanks everyone.

Have a great night.