City Council — June 16, 2026

Mayor presented a 2% raise for ordinance employees in FY27 (zero for FY26) after withdrawing a prior 3-3-3 proposal, citing financial pressures including 11.1% health-insurance growth; he pledged to match whatever percentage the Council approves for his own salary. Councilors debated the fairness of rescinding a previously promised 2% placeholder, the need for compromise amid rising costs and trash-fee increases, and whether to eliminate unfilled positions or provide partial retroactive pay (1-1.5%).

Council adopted the amended ordinance (2% FY27 increase, elimination of business-liaison position) by an 8-3 roll-call vote.

Budget review continues with the mayor/finance-director overview and section-by-section questioning; council raises and mayor's salary will be addressed via line-item reductions at a later point in the hearings.

Mayor detailed budget drivers (health insurance up 11.1% reduced via union negotiations, salaries ~$4M, debt service, retirement, insurance, trash/recycling) totaling $11.1M before $1.7-1.8M in cuts; Finance Director reviewed revenue sources, tax levy projection of $147.1M, local receipts, state aid net of assessments, and tax bill scenarios ranging $158-$252 depending on CIP factor and growth assumptions.

Budget proposal formally introduced for council review; no vote taken on the overall budget in this segment.

Council to review budget book section-by-section after recess; Thursday meeting scheduled for school budget.

Clarifications sought on whether CDA $200k is a grant vs. interest, why benefits appear under education, prevailing wage impact on trash, IT/cyber costs post-breach, specific parcels for $500k land sales, conservatism of revenue projections, and opportunities to increase PILOT agreements.

Explanations provided; no formal actions taken on questioned items.

Further review during section-by-section budget book discussion.

Mayor stated reduction maintains consistency with 2% ordinance employee raise; councilors expressed preference for 0% for council while debating whether to decouple from mayor's salary or apply uniform cut. a speaker proposed 2% mayor cut (~$1,461) and equivalent council reduction; a speaker and others emphasized messaging consistency with taxpayers and prior 0% for ordinance employees. a speaker questioned math on 1% vs 3% impacts and floated separating council to 0%. a speaker advocated 0% for both given 2026 raises. a speaker and a speaker opposed cutting mayor below 2-3%, citing underpayment and recruitment concerns. Attorney Kahn advised council has authority to cut salaries during budget process regardless of ordinance.

Amendment for 2% mayor / 3% council cut passed 8-3; original 0% motion withdrawn.

Motion to be resolved during general government section of budget book.

a speaker asked about enterprise fund manager, assistant director of small cities, junior civil engineer, and museum education manager; mayor confirmed none are funded or filled. a speaker noted one funded position without raise and supported referral for cleanup.

Agreement to refer ordinance to legal team at next regular meeting for alignment with actual filled positions.

Referral to legal team at next regular meeting.

a speaker moved $12k cut to line 53524, arguing for equitable sacrifices; multiple councillors cited tradition, benefits to lower-income families, 250th anniversary, and private fundraising alternatives. a speaker withdrew after opposition.

Motion withdrawn; no cut enacted.

Motions included $100k reduction to reserve fund (57410), $1k postage cut, and $2.5k outside services cut. Questions covered IT maintenance increases, HR staffing/title changes, collector retirement/transfer, and cybersecurity response costs. Several small reductions passed unanimously.

Three reduction motions passed (11-0 each); ongoing review of other lines.

Councilor Hockman asked about October 2025 forensics expense and July overtime tied to the breach; IT confirmed both were breach-related. Mayor and Gingrich stated the city has cybersecurity coverage, has submitted multiple claims, received partial reimbursement in the hundreds of thousands, and maintains an open deductible with renewal discussions upcoming.

No formal motion; council accepted that recovery efforts are ongoing and some expenses have been reimbursed.

Insurance renewal call scheduled for next week or the week after.

Reductions included $100k reserve fund, mayor salary/postage cuts, finance outside services, and city council salaries. Chair confirmed the adjusted total with Mr. Gingrich.

Motion passed by unanimous roll-call vote to approve $6,440,608.17.

Gamache argued overtime has been trimmed successfully over four months and 20% OT rate is unsustainable; Chief noted grants, seizure funds, and new recruits will help but injuries create unpredictability. Mayor advocated reallocating overtime funds to fill positions for November/January academies, citing staffing concerns from officers and chiefs; councilors raised concerns about increased benefits costs (~$100k), inability to legally reallocate mid-budget, and historical overtime overruns; union representatives noted rising call volume and supported more staffing while committing to manage overtime. Several councilors expressed support for the goal but opposed the cut due to risk of future free-cash supplements. Mayor pledged to propose internal transfers post-approval after meeting with chiefs and unions.

Motion to reduce police OT failed 6-5; public safety budget approved as submitted without reductions (11-0).

Mayor to return with written transfer proposal after budget vote; Mayor to meet with police/fire chiefs and union leadership to develop staffing plan and propose internal budget transfers from overtime to salaries.

Mayor highlighted interim director's work on columbarium and expansion; noted one laborer position eliminated with contract work substituted.

Budget approved at $243,420.

Councilor Manning-Martin moved to eliminate the $20k concerts line; mayor noted signed contracts; amended motion to $5k cut with potential grant/sponsorship offsets discussed.

Amendment passed 8-3; full human services budget approved at $4,356,132.

Efforts to secure sponsorships or grants for concerts.

Debate on George Peabody House part-time wages cuts and Children's Museum salaries moving off operating budget via ticket revenue (~$300k) and CDA grant; councilors clarified accounting treatment and long-term self-sufficiency goal.

Budget approved at $4,754,516; Children's Museum salaries to be funded externally for two years.

Continued monitoring toward full self-sufficiency in ~2 years.

Clarification on line-item variances and retirement system at ~59.5-63.5% funded with $143M unfunded liability.

Budget approved at $38,521,795.