Cuts, new revenues and what to do about the sewer fund are among budget topics Holyoke councilors will address.
HOLYOKE -- The road to a balanced budget could begin at City Hall Tuesday.
Follow along as live coverage of the 6:30 p.m. meeting of the City Council Ordinance Committee is posted in the comments section under this story.
Councilors will be debating a proposal that would require that the proposed spending plan the mayor submits each spring for the subsequent year be free of a deficit.
Council President Kevin A. Jourdain, who co-filed the balanced-budget proposal with Councilor Nelson R. Roman, said the plan makes sense because "good stewardship" means the city shouldn't spend more money that it has coming in.
Mayor Alex B. Morse said he shared the sentiment about the importance of a balanced budget. But establishing an ordinance won't achieve that because, instead, instilling a practice of balanced-budgeting will require councilors and the mayor discussing "a comprehensive plan that includes cuts and revenue."
For years, mayors in the spring have submitted a proposed budget to the City Council that contains a deficit, projected spending exceeding projected revenues. The practice has been that once the state Department of Revenue (DOR) 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.
Technically, the City Council could address the deficit problem on its own. Once the mayor submits his proposed budget in the spring, that opens a 45-day window in which the City Council is authorized to review the budget and make cuts. The council cannot add to the budget.
Councilors usually do make more than $1 million in cuts to the spending plan the mayor submits, but that's after weeks of hearings and in recent years, that has still left the city beginning the fiscal year on July 1 with a deficit.
The current fiscal year began with a deficit of $2.5 million that had risen to $2.9 million by the time transfers and cuts were made to plug the hole in December.
Among the problems of carrying a deficit into the fiscal year is it handcuffs the city by restricting how the free cash can be used, if other needs arise, knowing a transfer will be needed from that source to plug the deficit.
Such a transfer usually happens shortly after the DOR certification. Such certification usually comes in September or October, a balanced budget being a requirement under state law before the City Council can set the new tax rate each year in December.
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.
Here is the balanced-budget order the Ordinance Committee will consider:
"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."
Here is the agenda for the Ordinance Committee meeting:
1. Jourdain/Roman 1/5/15: Order: 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.
2. Bartley 12/15/15: Order that the City remove the "no parking" sign in front of 70 Chestnut St. (Whiting School).
3. Bartley 11/17/15: Ordered, that The city council consider deleting the "no left turn" ordinance on Whiting Farms Rd. at K-Mart Plaza. Further, the city council consider ordaining a "left turn only" lane into K-Mart Plaza from Northampton St.
4. Jourdain 11/17/15: Ordered, that an Ordinance be created establishing "No Parking" on the odd side of Beacon Avenue from the corner of Canby Street & Beacon Ave and the driveway to 27-29 Canby Street. Neighbors across the street are unable to get in and out of their driveway.
5. Bartley 11/17/15: The city council amend parking ordinance on Westfield Rd. near Blessed Sacrament that will allow for parking during weekend masses and will provide additional parking space.
6. Vacon 11/17/15: That the speed limit on Lower Westfield Road be reduced from 30mph to 20 mph for the portion of the road from Homestead Ave. that leads to the Elks.
7. Vacon 11/17/15: Add a stop sign at the end of Lynn Ann Dr. going easterly at Lower Westfield Rd. per recommendation of DPW/Engineering.
8. Leahy 11/6/15: Ordered that Donlee St. to be posted residential parking. Please bring in Chief of Police and City engineer to discuss.
9. Vacon 10/6/15: Ordered that "no overnight parking" signs be placed in front of 5 Donlee St. and across from 5 Donlee per request of residents.
10. McGee 10/6/15: Ordered that DPW install blinking crosswalk lights at the corner of Nonotuck and Lincoln as soon as possible.
11. Lisi 8/4/15: That the City consider replacing the bus stop at the corner of Hampshire & Maple Sts. it was recently deleted, but serves as a busy connection between buses coming down Hampshire St.
12. Bartley Order To amend Holyoke Code of Ordinances Chapter 22, Sections 161-163 (Pawnbrokers),and Chapter 66 (Secondhand dealers), by requiring that all city businesses subject to these laws be required to photograph any merchandise it receives, buys and sells, and to photograph any Sellers, and then upload the photos onto a police computer system for the purpose of making an electronic record. Currently, pawnbrokers are only required to keep a "book...open to the inspection of the Mayor or city council" or any other duly authorized person. Further, the amendment should require said dealers to hold items for at least 30 days prior to resale and the amendment should require pawnbrokers and secondhand dealers to register with the Chief of Police (i.e. Section 62-73) like Peddlers, Hawkers and Solicitors must do.
13. Soto 8/5/14: Ordered, that Section 2-34 of the Ordinances be reviewed and amended as necessary to prevent any office of city hall from closing early or closing during normal business hours.
14. Bartley 11/17/15: Order: The city council order removal of the handicap parking sign at 5-7 Martin St. The business at that address no longer requires it.
15. Soto 10/6/15: Ordered that a handicap sign be placed in front of 136 Sargeant St. for Ivonne Mora.
16. Lebron-Martinez 11/17/15: Order that a handicap sign be placed in front of 100 Beech St. for Phillip Manzi.
17. Valentin 11/17/15: Ordered that a handicap sign be placed in front of 195 Suffolk St. for Maria Vasquez.
18. Valentin 11/17/15: Ordered that a handicap sign be placed in front of 16 Clinton St. for Robert A. Fitzpatrick Jr.
19. Soto 6/16/15: Ordered that handicap sign be placed in front of 582 South Summer St. for Hector L. Velasquez.
20. Bartley: Order that a handicap space be placed at 34 Congress Ave. for Josue Andujar.
21: Lisi 3/17/15: Order: That the Council consider amending Zone SC to allow for certain additional business types.
22. Lisi 3/17/15: Order: That city create a Shopping Center Zoning Code designed for such large-scale districts, including but not limited to the Kmart Plaza (King Street), the South St. Plaza etc.
23: Bresnahan: Order: the DPW install appropriate signage stating local traffic only, no commercial vehicles on Lower Westfield Rd. from Whiting Farms Road to Holy Family and on Route 5 at the bottom of Lower Westfield Rd. The neighborhood has seen an increase of commercial vehicles (trucks).
Not all items listed may in fact be discussed and other items may also be brought up for discussion to the extent permitted by law