The Holyoke council president also wants the School Department headquarters settled and a plan devised to fund pensions.
HOLYOKE -- City Council President Kevin A. Jourdain called for a balanced-budget ordinance and a municipal employee hiring freeze Monday after the council reelected him as leader on Inauguration Day.
"Good stewardship requires that we not spend more than we have coming in for revenues. Our departments must realize it is not business as usual," Jourdain said at City Hall (see Jourdain's speech below).
The 15-member council met briefly in City Council Chambers after the inauguration ceremony was held upstairs in the auditorium and installed Jourdain as president again by a vote of 14-1.
Jourdain also said the city:
must be poised to embrace chances to increase the tax base;
find a plan to pay for the $156 million owed in pensions to city retirees;
stop tapping the stabilization, or rainy-day, fund when money is lacking elsewhere;
should resolve where School Department headquarters should be, including possibly taking the current leased site at 57 Suffolk St. by eminent domain;
should appoint a third member of the Board of Assessors and a city auditor;
should lobby to make the former Holyoke Geriatric Authority at 45 Lower Westfield Road the permanent home of the Hampden County Sheriff's Department's Western Massachusetts Correctional Addiction Center.
Ward 4 Councilor Jossie M. Valentin said "Peter Tallman" when the roll call read aloud by City Clerk Brenna Murphy McGee reached her name in the voting for City Council president.
"Because the vote is about who I wanted to see as City Council president," said Valentin, saying hers was more a vote for Tallman than against Jourdain.
Tallman, 58, a 17-year councilor at large, attracted the most votes of any candidate on the city election ballot on Nov. 3, with 5,476 votes, in winning reelection to another two-year term.
A bid in the community to "draft" Tallman into seeking the council presidency failed to gain steam early last month. Jourdain had said a few weeks before that that he had commitments from a majority of councilors for another term as president.
Tallman told The Republican and MassLive.com Dec. 1 of such a draft, "I'm not ruling it out," but it was clear Jourdain had the votes.
Jourdain and Ward 2 Councilor Nelson Roman have filed an order the City Council will consider Tuesday that proposes establishing an ordinance that would require that the budget the mayor submits for the City Council to review in the spring be balanced.
The order states:
"That an Ordinance be created requiring the Mayor to submit a balanced budget for the subsequent fiscal year to the City Council by April 30th of each year. The Mayor's Budget proposal for expenses may not exceed the projected revenues for the subsequent fiscal year. The Mayor may not use uncertified free cash dollars or unapproved withdrawals from the Stabilization fund in his revenue estimate to provide a balanced budget for the subsequent fiscal year."
The reference is to a practice mayors have used for years. The budget submitted to the City Council contains a deficit, showing projected spending that is higher than projected revenues. The practice has been that once the state Department of Revenue certifies the amount of free cash available for the city to use, transfers will be approved from that money source to eliminate the deficit later in the fiscal year.
Free cash is money that was unspent in accounts in the previous fiscal year.
"It is improper practice, which predates the current administration albeit continued by (the) current mayor, to have the chief executive submitting a budget to the City Council that is $4.5 million in the hole and expect the City Council to figure it out," Jourdain said.
"I expect the chief executive to submit balanced budgets to the City Council. The current practice makes it nearly impossible to balance the budget through spending reductions because half the fiscal year is already over," he said.
When the mayor submits a proposed budget to run the city in the next fiscal year, that triggers a 45-day window in which the City Council is authorized to review and cut, but not add to, the budget.
The council holds hearings on specific accounts such as the Police, Fire and Public Works departments' budgets and usually carves a seven-figure cut in the total. But the cutting hasn't been enough for the city to begin the fiscal year without a deficit.
Mayor Alex B. Morse said he agreed with Jourdain about the need for a balanced budget, but getting there will require discussion and not just an ordinance.
"I couldn't agree more with the spirit of this order. Every year we strive to present a balanced budget, but as Councilor Jourdain himself acknowledged, this has been an issue for years," Morse said.
"Simply passing an order will not solve this problem. We need a comprehensive plan that includes cuts and revenue, and no mayor can produce that alone. It must be done in collaboration with the council. I look forward to working with Councilor Jourdain, Councilor Roman, and all of their colleagues in addressing this issue head on," he said.
One of the problems causing the deficit is that expenses in the sewer fund have out-stripped revenues. Morse and Jourdain have clashed on how to solve that. Morse has urged the council for years to establish a series of small increases in the sewer rate to attract new revenue.
Jourdain has said that before customers are hit with higher rates, other steps must occur. More must be done to seize revenue in the form of overdue sewer bills, cutting expenses and possibly renegotiating the city's contract with the private company that operates the wastewater treatment plant on Berkshire Street, he said.
Morse has said the issue is one of revenue. The deficit is caused by the city having to borrow money to comply with federal laws to reduce sewage flow into the Connecticut RIver. Hundreds of thousands of dollars in overdue sewer bills have been received and little is to be gained by seeking cuts at the wastewater treatment plant or in reopening the operator contract, he has said.
Also on the Tuesday City Council agenda is an order filed by Jourdain and Councilor Todd A. McGee to save money by imposing a freeze on filling of city positions.
"I have also joined the call for a hiring freeze for all non-public safety personnel until such time as the budget situation improves. This is common sense," Jourdain said in his remarks to the City Council.
Morse said "an indiscriminate hiring freeze" won't solve the problem. His administration already has a policy that aims for efficiency by reviewing whether positions remain necessary or if they can be merged with others, he said.
"However, there are roles we need to fill, and simply saying we will not fill any position could be dangerous and would do more harm than good. For example, if our purchasing agent was to retire, the city would not be able to produce any contracts or process any payments. This would cause government to stop altogether. This is one example of many, and a reason I cannot support the order as written," Morse said.
Here is the text of the speech that Holyoke City Council President Kevin A. Jourdain made on Inauguration Day:
Firstly, I would like to thank my colleagues for re-electing me as President of the City Council. It has been an exceptional honor and privilege to serve you, the institution, and most importantly the people of Holyoke in this capacity.
I would like to thank my Mom Kathy, my wife Shari and my son Kevin Jr for being here today. I love each of you very much. My two daughters are in school today and cannot be with us.
Today is Inauguration Day; therefore, today is a glorious day. With Pomp and Circumstance, and robust with splendor, we to whom the people have chosen, has come a great honor but also a great responsibility. The origin of the word "inauguration" comes from the Latin word "augur." In ancient Rome, the Augur's responsibility was to determine by means of ancient rituals if it was the will of the gods for a public official to be deemed worthy to assume office, or if some official action already taken was pleasing to the Gods.
The Augur would interpret the will of the Gods by watching the flight patterns of certain birds interpreting their movements, noises, and conduct. The ancient Romans entrusted great faith in the Augurs to determine the pax, fortuna, and salus (peace, good fortune, and well-being) of the Roman people in taking their official actions.
Today, we have no Augurs to determine if we are the right people to serve, all we have is the supreme best hopes of the electorate to determine if we are the right people to serve. Each of us has stood before the people of Holyoke and has been chosen. Each of us is willing to serve with the best of intentions guided by our visions for a better Holyoke.
As Council President, I will seek to harness that collective energy in each of us so that the City Council may be a positive force for the Common Good.
I too like you have a vision.
My vision is one of a prosperous city, vibrant and dynamic. To achieve that we must embrace opportunities to grow the community economically, grow our tax base, and expand the job opportunities for our residents. We must continue to embrace policies and projects that are consistent with this spirit.
We also need to continue to give special attention to our downtown core. It is vital to our success. We must continue to expand on our investments there.
My vision is also of a city that has a government which is responsible to its mission by being good stewards of its resources. Stewardship does not simply mean preserving that which we have, but also about maintaining and growing our reserves for the continuity of our mission for many generations to come. It is unjust and selfish for us to spend for today with no plan to serve for tomorrow. Preservation of services at current levels today without consideration for our need to reform and re-tool and at the further expense of our city's long-term financial vitality is not in the public good.
To that end, the City Council and the Mayor must once and for all fix the structural deficit in our city budget. Difficult choices need to be made, so let us make them. The city must in a sustainable manner develop a plan to retire the $156 million unfunded Retirement Fund liability. The current plan to pay it off by 2032 is impossible to fund under the current budget framework. I engage the Mayor and Retirement Board to work with us to develop a real solution. Solving this will free up millions of dollars in working cash flow to preserve services and protect our cash reserves.
We must not deplete our current Stabilization Fund balances any further. To do so jeopardizes the city's future against significant emergencies, significant unexpected capital needs and to maintain our excellent bond rating. It is a travesty that no money has been put into this fund since 1999, and now we take it as routine that we need to make withdrawals from it.
A permanent home for the Holyoke School Department must be found that is in the final and financial best interests of the city, its children and staff. I once again renew my plan for the eminent domain taking of 57 Suffolk Street if other more reasonable terms cannot be met. This solution could save the city of Holyoke millions of dollars. I look forward to continuing to work closely with Dr. Zrike with whom I am thus far thoroughly impressed.
Since it is likely that our tax levy will remain close to its current levels for the near term, or with small growth, it is only proper that our departments' expenses also remain level. Good stewardship requires that we not spend more than we have coming in for revenues. Our departments must realize it is not business as usual.
To support this principle, I have co-sponsored a new government reform measure in the form of a proposed new ordinance to implement greater restrictions to require the Mayor to submit a budget which is balanced to the City Council when he initially proposes it, as opposed to the current practice, which is to be millions short, and then only balanced half way through the fiscal year. It is improper practice, which predates the current administration albeit continued by current mayor, to have the chief executive submitting a budget to the City Council that is $4.5 million in the hole and expect the City Council to figure it out. I expect the Chief Executive to submit balanced budgets to the City Council. The current practice makes it nearly impossible to balance the budget through spending reductions because half the fiscal year is already over.
To support this initiative and the remainder of my government reform goals, it is my intention to leave my seat on the Finance Committee and to join the Ordinance Committee for the purpose of assisting in this critical work.
I have also joined the call for a hiring freeze for all non-public safety personnel until such time as the budget situation improves. This is common sense.
In like manner, I shall request of the Mayor a capital bond for the purpose of funding important capital projects that the city desperately needs, including, important improvements to parks, sidewalks, our schools, and the city hall annex. We have decaying and dangerous traffic intersections that need our immediate attention and I will advocate for those dollars in this bond. Moreover, we need to consider bonding for items that we have traditionally expensed in effort to free up significant dollars in our operating budget. For example, items such as police cars, that are hundreds of thousands of dollars, need to be purchased on an annual basis. Under this capital plan, these costs would be covered by the bond instead. The city's important capital needs cannot be ignored during these tight fiscal times, this offers us a solution.
Over the coming weeks, we will be filling a number of important positions vital to our government including filling the 3rd Assessor position and the City Auditor position. It is critical we get top quality people in these positions.
We must continue to work in earnest with our Water Department to provide us a proposal to merge their department with the sewer department under their Special Act framework. The Water Department Manager tells me very soon they will have a proposal for your consideration. I have made this a top priority of mine over the next term.
It is also my intention to continue to lobby for the permanent location of the Sheriff's Alcohol Treatment Center here in the City of Holyoke. The city would benefit greatly from a lucrative long-term lease with the state for the use of the former Geriatric Authority property. We can achieve even better terms than we have presently. This is the one certain way for the city to re-coup the millions lost to the former operations while providing a valuable service to the people of Hampden County. In a related manner, I will be advocating for the adoption of legislation I have filed to regulate the use of licenses for city property use which have been used to circumvent the City Council's lease granting authority.
As you know the bulk of our work occurs in our committees, and I will work hard to make our committee system more efficient and vibrant. Later this week, I will announce the new committee assignments for all Councilors for the new term. It is my intention to give some new Councilors opportunities to serve in the leadership of the Council and bring their fresh perspectives and energies to the committees.
I also have an ambitious agenda of improvements requested by the residents of my ward 6. The list is too long to mention here but I will continue to be working with you on achieving these improvements together.
As promised, I kept my word to serve just 6 years as Council President. I am so very pleased in how much we have been able to achieve over the last 4 years. In my last term as President, I will be sprinting to the finish with an ambitious plan of reform and improvement. We will not just be marking time, but rather making history and I am very fortunate indeed to have this opportunity.
Inaugurations are about new beginnings. But in the end, we will be judged by the results we produce. I will do everything in my power to assist each of you to be a success in your duties and for our city to prosper. Let us begin our work.
May Almighty God keep Holyoke within His Divine Providence and may He Bless the work of our new Mayor and City Council.
Thank you.