Finance Committee - Regular Meeting

Alright. Good evening, everyone. I'm Jake Wilson. He, him pronouns, counselor at large, and your finance committee chair. It's 06:00 on the dot, and I'd like to call to order the Monday, 11/10/2025 meeting of the finance committee of the Sunwell 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's central website and local cable access government channels. Clerk, could you please call the roll to establish quorum?

Alright. This is roll call. Councilor Mbaugh?

Present.

Councilor Burnley? Councilor Klingen?

Present.

Councilor Scott?

Present.

Chair Wilson?

Present.

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

And councilor Burnley let us know that, he will be joining us here shortly. Alright. Folks, we're gonna be taking up our seven item agenda, in the order posted tonight. Gonna start with the first item, the minutes. ID number 25Dash1612, approval of the minutes of the finance committee meeting of 10/21/2025.

On the minutes, any discussion? Seeing none. The item's laid on the table to recommend approval with a single vote at the end of tonight's meeting. We, don't have director Reisch with us for our second agenda item, so we're gonna keep in committee ID number 25Dash1451, director of infrastructure and asset management conveying the draftcom the draft combined sewer overflow plan. Hopefully, director Rish can join us for a subsequent finance committee meeting.

It's gonna bring us to our third agenda item, ID number 25Dash1585. The mayor requesting approval to pay prior invoices totaling $23,109.33 using available funds in various Department of Public Works accounts for various services. We have DPW commissioner Jill Lathan with us. Commissioner, please tell us about this request.

Good evening, committee. Thank you for joining me. I'm Jill Lathan, commissioner of DPW. So we have just a few prior year invoices. We have the Primo brands, which is the $575.34. This is basically because this company kind of sold ownership, and so we closed out that PO, and they changed ownerships, and then we had some outstanding invoices that we need to to pay for that. The next one is the 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 close out the PO, they decided to respond to our multiple emails saying that they had a bill for us.

And then this last one is Direct Energy, which is 18827.17¢. So anytime we have these utility bills or gas bills, it's always gonna be kind of we're do our best. Those bills kinda come in. We do our best to estimate when we can close out that PO. Every year, this the utilities and gas are always gonna kinda come in late because it's either over projected or under projected.

So this is a prior year invoice that we need to pay for that. This is utility bills are always gonna be kind of influx because a variable cost that we do our best to estimate at the end of the year, to carry out as much as we can, but then we get invoices and trying to, you know, continue to to clean up and catch up on. So that is where we are for those to go ahead.

Alright. Thanks for that, commissioner. 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, that explanation. That's what we always ask with prior invoices. What happened? You know, why did it happen? You know, what are we looking to do to to try to keep it from happening again? I appreciate that that explanation. So not seeing any discussion. We're gonna lay this one on the table to reckon recommend approval here at the end of the Thanks, commissioner.

Thank

And it take us to our fourth agenda item, ID number 25Dash1584. The mayor requesting approval to accept and expend a $3,000 grant with no new match required from the Summer of Cambridge elder services to the council on aging for senior transportation. We have I see director Ashley Speliotis from the council on aging with us. Director, please explain this request.

Sure. Good evening, everyone. Like councilor Wilson said, Ashley Spallones from the Council on Aging. This is a yearly grant that we receive from Somerville Cambridge Elder Services. It's part of title three funding for direct transportation. And we use this, 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, or sometimes if there is no other way to receive services here, we will use this, 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? This

Exactly. Yep. The taxi program right now, the senior taxi program is to get people to places, so to the grocery store, pharmacy, farmer's market, food pantries, or routine medical appointments. But this grant is solely used to get people to the senior center.

Alright. Appreciate that explanation. Colleagues, we have any any other questions on this one? Mister

chair.

Request. Yes. Councilor Mabaugh.

Excellent use of funds.

Mhmm. Agreed. Hear. Hear. Anything else on this one, colleagues?

Okay. 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, another grant acceptance. Our fifth agenda item, ID number 25Dash1600. The mayor requesting approval to accept and expend a $1,110,000 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. Alright. We have, finance director Alan Onacio from OSPCD with us. Director Onacio, you wanna explain this one, please?

Sure. Thank you. Through the chair, as I believe was in the body of the council item. This is a minor typo correction, a clerical correction. This originally went before you, I believe, a few weeks ago or late summer, early early fall. 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.

Alright. Thank you for that. Colleagues, discussion.

Mister chair.

Councilor Mubar.

You know, with director Ignacio again, you know, it's always like, it's hard to 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 East Somerville, Assembly Square, and all whatnot, you know, I '93. So 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 Inazzo?

We're the chair. I I don't know that there's a direct study that would analyze that specific question. You know, I would I would turn to the mobility department and the piece of department who are working to on the larger project that this is gonna help fund the design for. I know that that development is, you know, relatively short distance away, and kind of leads right into Washington Street, which leads to little interchange connector. So, proximity wise, it's it's not that significantly much further, and there is, you know, expected to be a larger increase in population and, commercial activity once Union Square is all built out.

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

Okay. Thank you. I think that, I'm gonna say chairman Scott. Well, I think I actually say chairman Scott now because I'm talking to the chair, actually, mayor elect. So chairman Scott, I'm not recognizing you as in, like, a chair to the chair. I think chairman Scott has something to

to something. Alright. Vice vice chair Scott, you've got the floor.

Thank you, mister mayor elect. No. I just I I said my piece on this when it was before us last time. You know, I mostly just disappointed to see so much of this going to police overtime as opposed to the design implementation of the Unisquare Streetscape Plan, but happy to, as we did last time, approve this one with the typo changes. Know, move to approve, sir.

Alright. With no other discussions seen from colleagues, we're gonna lay this one on the table to recommend approval. 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.

Alright. Well, while they jump on camera, we're gonna go to our next agenda item. That's our sixth one, ID number 25Dash1560. The mayor requested approval to create the community benefit stabilization fund and accept the payment to the fund of $3,946,742.98 from the community benefit contributions outlined in project development covenants. So we have the aforementioned director, Inasio, and I believe we have our director of finance, Ed Bean, well. There he is. Whoever wants to tell us about it, take it away.

Thank you through the chat. I guess I'll kick it off since I'm on camera. This is, continuing our efforts to, clean up and, you know, make sure we have all our appropriate stabilization funds in good order. These, again, as I came before you a couple weeks ago on, on a couple of the infrastructure stabilization funds, you know, a a lot of our larger, development districts, transformative district, districts are having their large scale projects reach a point where that they've been triggering a lot of these payments. Many several years ago when Union Square was the first one sort of coming up, We created a Union Square stabilization fund, which we as is in accordance with the the Union Square development covenant.

And so for lack of a better, place, these have been set kind of sitting there, the most recent ones. And so now it's time to, per the official community, benefits ordinance, move them to their proper, generalized community benefits stabilization fund for all of the other, master master plan projects that are now triggering, these payments. So, with that, we ask for, acceptance of this community benefit stabilization fund and any additional questions you may have.

Alright. Thanks for that, director. We got a queue here. Councilor Clegan is first up followed by councilor Vaughan and councilor Scott. Councilor Clegan?

Thank you, mister chair. Through you. So and I think I heard you say that this is for mostly, 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, Wall Street stabilization fund for traffic mitigation. Things like those won't be rolled into this. Will they are? Or

No. If if through the chair if something is if they 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 or planning board approval. These are for, you know, the the larger projects that have either, master development covenants, or, you know, think your Assembly Squares, your Boynton Yards, your US Twos, those those larger transformative district projects.

I figured so. Through you, mister 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 my colleagues brought up, you know, having the list print sent to us. And so but this is, like you said, basically, for the the community benefits agreement ordinance, to service that. So, yeah, no further

Alright. Thanks for that. Councilor Mabad and councilor Scott. Actually, director Meade, did you have a

Oh, just I just wanted to add on to that, mister chairman, that the enabling language here mirrors the community benefits ordinance. And so it's very broad based. So the the receipts can fund human services, the arts, culture 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.

Alright. Thanks for that. Councilor Mubal, you are up, and then councilor Scott.

Thank you, chair. I guess I'm just curious as to is is this, like, from server developers? Like, this is or this is from, like, one developer? Like, can you I'm sure director spoke to it, but I wanna get some clarification there.

Through through the chair, yes. They're currently right now is one very specific, community benefit stabilization fund set up, which is the Union Square community benefit stabilization. That is tied to a very specific set of community, benefits payments mainly through The US Two, and that has its own specific covenant and civic advisory committee, 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 are triggering payments and we've made some collections, you know, per the larger general community benefits ordinance, as mister Bean was saying.

Now we have to create a Summerville 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, guys.

You still got the floor?

Yes.

Why?

Councilor Bob, we can jump to councilor Scott and come back to you. Give him a second. Council Scott, why don't why don't we jump to you, we can come back to councilor Mabah at a better moment?

Yeah. That sounds great. Thank you, mister chair. So councilor Mabah was kinda starting down a bit of the path that I was curious about. Normally, when we get a a big stabilization fund, creation like this, 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. 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 receded into, but, you know, didn't necessarily fit the mandate to appropriate from because that was specific to the Union Square community benefits project that was also jointly run with the civicadvisorycom committee, which mister Galagani can explain more. And then there's also receipts that we've recently received that, may have been in a pending or suspension account. And so now we need to formally create the general, stabilization fund that, as mister Bean said, will follow the general community benefits ordinance that has been passed.

Okay. And So they do come from multiple they have come from multiple development district projects.

Okay. So just to make sure I've got this clean, we've been sticking checks from developers on community benefits payments into a desk drawer, and this is just creating the proper folder for them to sit in, to a certain extent.

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

Alright. Thanks. I'm very analog and old. I also, though, I guess this the first part of what you said, said that the Union Square community benefit stabilization fund, which, again, is very constrained in terms of its uses, is sitting there, and a certain chunk of this $3,000,000 is coming from there and going into this new community benefit 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, 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 benefit stabilization fund.

Oh, wow. Alright. 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, went into Union Square community benefit stabilization fund that was not from Union Square plan development area, projects?

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, deputy director Ignacio. I don't have any way to know where these funds are coming from or how much they are. And and for that matter, how much of the Union Square community benefits fund is gonna be depleted, from this. Right?

Because there's also been you know, there have been various appropriations out of that fund. And, I mean, I guess, I don't wanna be in the referee's seat saying how much of that gets credited versus the Union Square specific funds versus citywide funds and all that. I'm just trying to understand this transaction because it is a very large transaction here. Even if it's internal bookkeeping, it's it's something that I feel like I I need to understand. So I guess maybe director Bean or or if you can help me maybe read me out on this or

Yes. Yes. So there is a spreadsheet. So director Anasio can supply a spreadsheet of a breakdown of all of these funds. Okay. Not all of the Union Square stabilization fund is going to this new one, a portion thereof. And I I you know, I'm looking at it right now. I don't know if you can call it up, Alan, right now. I'll tell you

I I can. I sent it to the AGA team just to go through the official channels, but I absolutely I absolutely can pull it up. Give me one second. I don't know if you wanna continue on with any other questions, but I can I can pull it up in short order?

I'll just add anything that's pulled up, please. Let's make sure that gets sent to the clerk, to get entered into the record. Also, I wanna acknowledge councilor Burnley has joined us. So, clerk, please, note councilor Burnley is present.

Got it. Thank you.

And then, councilor Scott, did you on this point, did you wanna add in before we toss? I wanna give it back to councilor Rabaugh.

I mean, this is kind of the the big question

It

is. Chair. So, I might have follow ups, but I'm happy to, yeah. Honestly, you know, this is I imagine it's gonna be a lot to digest and a lot to parse. You know? So as much as I understand this is just a standard bookkeeping thing, I I kinda do wanna understand it before I before I vote for it. So maybe the right thing to do is to have this documentation, sent my way or sent to the entire committee, and then, perhaps deputy director Anashya and director Bean and I can have a conversation in the coming week, to figure out, to make sure I'm I've got it all sorted.

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

Yeah. That's one way to go. Alright. I appreciate it. I'm I'm a let you I'll I'll come back

We'll come back to you. I wanted to throw it back to councilor Mabaugh because he he was he did have the floor when we when we jumped away to you. I wanna bring it back. We promised we would, and then we'll go back to you, councilor Scott. Councilor Mabaugh.

Thank you, mister chair. You know, I don't I don't have the most beautiful voice. So but I'm glad that you're still giving it back to me. I think chairman Scott councilor Scott was really also touching to, like, the spaces where I was I was getting at because I I know, like, doctor Gangani and I, we were catching up briefly about other stuff, and then I kinda, like, asked about this, where it was coming from, where this money was coming from. And 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 the reason why I was asking all these other question, whether it's like one developer or several developers, you know, whether it's for new project payments or certificate of occupancy or maybe linkage fees or conditional planning? Because since I sit on the job creation and attention trust, I wanna know like, hey, you know, is this voluntary, you know, like, there are 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, does the city council need to have it imposed, like, some measure about, okay, this is you know, we wanna make sure that this money is spent in this way to accomplish, you know, its its purpose, a mitigation purpose for why it was created or if if not, then we can now start to now meddle around to say, okay, there are things that we wanna do, you know, with these funds.

There are other needed programs that need to be funded and all whatnot. So I guess 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 how or not. That is that's where my curiosity is. If anybody can really, like, just help me get frame that for me, that would that would be super great I'll be super grateful.

Who wants that one? Director Nassio, director Bean? Well, thank you, director Bean or director Ganagali. Jump in whenever you'd like. I have the spreadsheet available to share, but if, director Bean or director Ganagali have anything to say in advance, I'm I'm happy to do.

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

you can you identify yourself for our clerk, please?

Most certainly. Tom Galegani. 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 up to four buckets with each of these different six different projects. 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 projects that could be described as community benefits. That would be job training or 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 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. In other covenants, it's more general. In some some covenants, we use different wording. We don't use the word community benefits because as these covenants evolved over time, we use different standards and different definitions.

I'm just gonna answer a question that was brought up for before too and that, basically, all the money that has been paid to date for Union Square, the Union Square project specifically, 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 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 a, you know, a couple 100, couple thousand, but it's basically been exhausted. The Union Square money so far has been exhausted and has been sent to 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 I've heard, and I apologize for showing up a little late. Track was a little, hairy than I expected.

No. Thanks for that. Councilor Bahia, 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 postsecondary education program. Thank you, director Garigani. I appreciate that.

Director Nassau, did you wanna add anything on that before I give it back to councilor Scott here?

I just wanted to say if it helps advance the conversation, I'm I'm ready and able to, 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, I can if that's the protocol.

The the yes. Clerk, could you allow director Ignacio, to share his screen? And then, we'll just ask to make sure that the that the document being shown here is entered into the record, with this meeting.

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

Great.

Let me just find and so you will see I just wanna point out, I did color code this. 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 mister Galigani mentioned, are the essentially three buckets of previous appropriations we have made out of this fund. And also as Galigani, mister director Galigani mentioned, there most likely is a slight variance, between what was collected and what was appropriated, and that is mainly due to, at this point, just interest received on the stabilization fund.

Councilor Scott, I'm gonna guess you're about to ask the question. 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 then I promise I'll get back to you. So is it reasonable to say the ones in yellow roughly total that the the deduction totals there and the ones in green roughly total the, revenue totals minus that amount?

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

Yep.

Okay. Thanks. Councilor Scott.

Thank you, mister chair. So, so this is this is why I was hoping to see this. Now if I just do the math here, it you're right. Those yellow ones add up to that, roughly 1,000,000 down at the bottom that have been deducted. So I appreciate that, narrative from director Galigani. But when you do 1,000,000 when you do 4.6 minus one, that gets you to 3.6, and we are looking to transfer, well, closer to $4,000,000 here. So I'm curious where the rest of the funds are coming from.

Again, I'd have to check the interest earned, and anything in pending, but these are the developer payments we have received, the direct developer contributions we have received. It should equal 3.96.

Okay. So, in that case, this is and these are all revenues that were brought in and deposited in the Union Square community benefits, stabilization fund. This transfer coming out, at least according to what we see in front of us, is actually, if it was possible to do so, would leave the Union Square community benefits stabilization fund at a negative balance, of about 300 k. So let's hope there was enough interest to cover that. 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 that is correct. Almost everything has been, received as a developer contribution payment has been appropriated out for the three buckets, outlined below.

Okay. So I think, mister chair, the reason I was having a hard time understanding all this is because normally because this is, functionally a request of a, transfer from the Union Square, Community Benefit Stabilization Fund to the newly created Summerville community benefit stabilization fund, in the amount of functionally its entire balance at the moment, and that would normally look like a request for exactly that. I was confused about the language here to create a fund and accept a payment to the fund as opposed to requesting the council's permission to transfer from one stabilization fund to another, which is, I think, the legal form this this generally follows. So I 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, protocol or the the counsel procedure on that.

Well, look, I don't think anybody's gonna take us to court on it. I just wanna understand what the mechanism, here is. 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 in accordance with the the ordinance, we can reclassify and do that without any formal transfer per se.

That's so wait. The ordinance overrides the state law requirement for the

That's not the state law refers generally to transfers in the general fund.

Okay. Alright. Well, I I just wanna 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, and that if we had had that fund, that stabilization fund created a year ago, 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, 2019, it looks like. So, yeah, we would have needed to create this earlier. But, presumably, as these payments would come in, they would have gone to the general one. That's understandable.

But the net result, 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, scheduled payment from US two comes in, which is going to be based on their progress on their project. Is that right?

That is correct. Through the chair, that is correct.

Alright. Well, thank you. I think that's gonna be sources and concern and discussion on the Uniscore Neighborhood Council. I'll be sure to, talk to them and loop them in on on this. It's a mister chair, has a copy of this gone to, the committee as well as to the clerks?

A copy of this document being shared here? That's a good question.

Through the chair

Don't soon.

I I will be sharing this document, shortly with the committee and then

Alright. Alright. Well, I appreciate that. And, if, I guess, at some point, mister chair, we could find out where the other $360,000, came from that's unaccounted for in this transfer, I I think that's a

I think I see interest, 347,000 interest. And I'll ask mister Nasio to

go back.

Is it possible that 4,600,000.0 does not include or that that that, it looks like it's included in that, but it's that the interest income is in addition to the 4,600,000.0? That the that the, sum that the sum there is of, up until the sell above it, not including the sell above it? Yes. Exactly. I have

to go through, through the chair. Will go through review the the actual spreadsheet, not the PDF version. There are a couple different sources of interest or investment income, and I will provide a revised I can provide a a 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, that remains. Colleagues, any more discussion on this?

Yeah. I mean, miss miss Chad, I just I continue to not love, having to do back the envelope math, during a during a meeting like this. So might I ask that we, keep this one in committee? And I'm sure we're gonna have another, finance committee before the end of our before the end of our session. Correct?

We will definitely have another finance. I'm just getting ready to plan that one, in a couple days, actually. So, yes, we will.

Alright. Then I I I think I'd like to make sure we get the math right. And maybe we can just keep this in committee, and, hopefully, it'll be a a quick rubber stand next time we come through.

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

Through the chair. Yes. I just wanted to share something on that particular point. As you 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 from this community benefit stabilization fund for a variety of food security initiatives. So if there are outstanding questions, it would be our request that we can have 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 food security situation, how would you feel about discharging this without a recommendation, and trying to do that work here, make sure everyone's in a good place by Thursday, just, you know, in in light of what we're up against here?

Yeah. You know, mister chair, I'm I'm never a fan of, having the administration's, emergency become a crisis on our part. But, given that we're all trying to get food into our neighbors, let's I would I would, though, ask if, perhaps deputy director Inaccio or or director Bean can, reach out to me. I guess tomorrow is a holiday, so on Wednesday to make sure we have a conversation about this. Absolutely. Alright. Thank you, sir.

Alright. So, colleagues, the plan here then is to actually, let's take a vote on that then to discharge. I'll move to discharge without a recommendation. Clerk, could you please call the roll on that?

Alright. On item number six, to to discharge this without recommendation. Councilor Mbaugh?

Yes.

Councilor Burnley?

Aye.

Councilor Klingen?

Yes.

Councilor Scott?

Yes, please.

Chair Wilson?

Yes.

Alright. With that, that is all votes in favor.

Alright. Thanks for that. And those of you who were sticking around for that, thanks for coming and running us through that. Look forward to to, you know, the explanation that we're asking for, those exact numbers of how we got to that point. It's gonna bring us to our final agenda item tonight, ID number twenty five dash one five nine nine. The mayor request approval to create a housing assistance stabilization fund under the provisions of Massachusetts general law chapter 40 section five b. I see we still have, director Bean with us, and I think we have, director Ellen Schachter from housing stability as well. I see we have director Galigani also. Who wants to tell us about this request?

Well, I guess I'll start. Having conversations with director Schechter looking at long term situations here. I think we're all agreed about the importance of this situation, housing assistance. Seems to me that 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 wanna get something on the books. And, the need for that, I I'm sure director Schachter can, speak on that and tell us why she thinks it's important. It's also, you know, I think it's important that the general fund closes out on June 30. The housing stabilization is multiyear, so it's from an operational perspective. It's gonna be a lot easier to execute contracts, and 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, you know, I would turn it over to director Schachter 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, councilor?

Yeah. Please, please identify yourself for the clerk also,

and then I'll

let you let you explain the item. Counselor Mabal is just in the queue.

Okay. Thank you so much. So Ellen Schachter, director of the office of housing stability and to the chair and to the other finance committee members, really, really, really glad that this issue was 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 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 we're 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. A stabilization fund at this point would do a couple of things. Particular, the two programs I am most concerned with are called our FLEX, S A H T F 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. At this point, I am very pleased that I think the administration is going to be looking to see if there are any additional funds that could be put into these funds to ensure the longer term 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 disruptor disruptive to rental assistance programs.

Alright. Thank you for that. Now, Councilor Mubaugh, you were first up.

Thank you, chair. Good to see you, Doctor. Schachter. You know, I appreciate that editorial. You know?

It's you're always doing good work, and I cannot over, know, emphasize, like, how nice it is. And when I looked at this, honestly, I'm mostly I'll just throw a couple of things out there and then just help me piece it together because, yes, this is a new funding source for this program. But since I sit on the affordable housing trust, it appears to me to be like, I think at this part of this, would it be first, like, how would the the money are they competing programs or, like, are we

Through like. 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 Gellig Anasio or finance director Bean might be able to answer this might be answered this as well.

Because, yeah, because I I just wanna make sure that, you know

Yeah.

If they 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 third category for its grants and programs or like, I think you get where I'm going. Yes, 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 Finance Director Bean or Director Ignacio 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 the affordable housing trust fund, for example, for our flex SHTF program, are most likely going to be expended by the end of this fiscal year. 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. 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 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 to that that

I might not

be aware of.

Thanks, director. Director Bean?

So as, director Shakta mentioned, if we remember, we the city, with your help, administration adopted the community impact fee on short term rentals back in the spring. So the law says that 35 percent 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 the stabilization fund. The other area you mentioned is repurposing of existing stabilization funds. So we're in the process work trying to work out the status of some of these dormant stabilization funds, and that's that's another thought possible source here to repurpose that and and see the the this new stabilization fund.

And then, of course, you know, what we've listed in the enabling legislation is, you know, a number of other sources can be used to fund this 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 to appropriate into it.

And, Chair, thank you, Doctor. Bin and Doctor. Chatter. So I guess we would are we gonna create a new committee similar to the Affordable Housing Trust, you know, to manage this?

My understanding I don't I don't know. Maybe, director Bean, I don't know if you wanna answer this. My understanding was a was a a no and that but that these funds would be going into programs that we are currently running to keep them funded.

This is another entity. Yes. I mean, we don't want too much bureaucracy here either as well. One, we've rectified it to be able to spend that money, get it in there, and and, of course, you know, not disparaging the good work of the affordable housing trustees here. But I I I think this is this is gonna be be reserved for Ellen's programs during the course of the fiscal year. We wanna come right back to you, appropriate the money, and be able to use it.

Okay. No. I mean, like, anything for director Shakta. I just want is for, like again, so what are the expected sources for, you know, the revenues, you know, for this fund?

Well, as I suggested, I think we would come back to you on the community impact fee for short term rentals. That's a start. We're certainly looking at repurposing some of these stabilization funds, not only the dormant ones, but I've also been talking to Amanda Williams about the racial and social justice fund and maybe some monies there we can repurpose. We've done that already for 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 there's some other issues, which we'll talk to the the new mayor about soon, and and and plan some things out. So there's other potential sources as well.

Gotcha. No. Thank you, Chad. Thanks. I appreciate that.

Thank you, counselor. Counselor Scott.

Thank you, mister Chair. I'll I'll keep my snark to an absolute minimum. This is a this this is basically just a bookkeeping measure that'll ensure that director Schachter can keep delivering on the programs that she's offering that are awkward across, 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 a much more transparent way for folks in the community to be able to tell just how much the city of Somerville is actually devoting towards, housing stabilization.

So I think this is a a a great, tool. I think it's the right tool. I'm actually kinda just shocked we haven't done this earlier, but I appreciate it. The best time to make a process improvement is right when you notice it. So, that's awesome. And I will take my top 10 list of responses, to the rest of the discussion and hold that for the after committee meeting. Thank you, mister

award two, counselor. Anything else on this, colleagues? Alright. We're gonna lay this one on the table to recommend approval as well. That brings us to the end of tonight's agenda, and thank you to staff for for coming and walking us through all this tonight.

Thank you so much.

So at the end of the agenda here, councilor Klingen moves to recommend approval of the items on the table and to adjourn. Could the clerk please read the agenda item numbers that are up for recommendation approved and call the roll on recommended approval of those items and adjournment?

Yep. On adjournment and recommending approval for items one, three, four, five, and seven. Councilor Mbaugh?

Yes, please.

Councilor Burnley? Aye. Councilor Klingon?

Yes.

Councilor Scott?

Yes, please.

Chair Wilson.

Yes, please.

Alright. That is all votes in favor, and it is 06:55PM.

Alright. Thanks, everyone. Have a great night.