HomeMy Public PortalAboutCity Council Fiscal Year 2023 Budget Policy Guidelines Watertown's FY2023 Budget Policy Guidelines
As Approved and Ranked by the City Council
November 23, 2021
The City Council is adopting these budget policy guidelines pursuant to Section 5-1 of the Watertown
Home Rule Charter. Based on these guidelines, the City Manager will develop budgetary goals and the
City budget for Fiscal Year 2023. Watertoti�,n's Ongoing Budget Policv Guidelines Resolution 2012-72,
Amending Watertou,n's Ongoing Bridget Policv Guidelines Resolution 2017-84 and Watertown's
Ongoing Capital Project Budget Guidelines Resolution 2013-76 are hereby incorporated by reference.
I. COST-SAVINGS/REVENUES
Note: The items in this section were ranked in order of priority by the Citv Council on December 2
The City Council believes that identification of cost savings and/or new revenues should be a
precondition to additional expenditures. To this end, in developing the FY23 budget, the City Manager
should:
A. Continue to proceed with the guidelines of the Strategic Framework for Economic Development,
with the long-term goal to promote a diversified and growing tax base.
B. Continue pursuing mitigation monies and/or other measures for larger scale projects.
C. Consider filing additional applications to all applicable federal and Commonwealth programs
and grants, including, but not limited to, the Commonwealth's Community Compact program,
the Municipal Vulnerability Preparedness program, the Green Communities program, the
Housing Choice program and the Community Oriented Policing Services (COPS) grant.
D. Actively seek Payment In Lieu Of Taxes (PILOT) agreements with each non-profit organization
owning or purchasing property in Watertown.
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Watertown's FY2023 Budget Policy Guidelines as Approved and Ranked
II. PROGRAM ENHANCEMENTS/EXPENDITURES
Note: The items in this section were ranked in order of ariority by the Citv Council on December 2
To the extent that resources allow, in light of the financial policies stated above, and adhering to the
principle of first identifying cost-savings and/or new revenue, the following program enhancements and,
if necessary, new expenditures should receive priority in the FY23 budget. Education program
enhancements and expenditures should be considered subsequently in light of the recommendations of
the School Committee.
A. Continue support for Building for the Future Initiative funding in collaboration with the School
Building Committee, for the Three Elementary Schools project, and for the MSBA High School
project, without debt exclusion funding.
B. Continue to work collaboratively with the Watertown Public Schools to develop a
comprehensive multi-year educational budget that assures sustainable funding for our schools
and the successful education of our children, and seek to accommodate a FY23 Education
appropriation that will provide level-service funding for our schools.
C. Improve the operational efficiency, flexibility, and capacity of the Public Works Department to
meet the City's growing needs to manage contractors, respond to work order requests, oversee
development projects, plan and implement infrastructure improvements, improve
communications to residents about road construction, comply with the MassDEP 2030 Solid
Waste Management Plan, and maintain complete streets infrastructure. Consider what
technology platforms are needed to support the Department.
D. Update the five year plan and funding schedule for the integrated improvements of the City's
streets and sidewalks, water-sewer-stormwater infrastructure, and underground utilities. The plan
should show status of ongoing projects, identify future projects including those with no funding
source, identify sources of stormwater and sewage outflow to the Charles River, and
coordination with water-s ewer-stormwater projects and underground utility projects.
E. With the creation of the Acquisition of Land/Open Space Stabilization Fund, continue working
on plans with the City Council to meet the identified and ongoing need for acquisition of land for
open space and recreational use, including proposals submitted to the Community Preservation
Committee.
F. Continue to work with the Watertown Transportation Management Association to identify
sustainable sources of funding, including tax revenue if needed, for the shuttle bus program in
Watertown.
G. Hire a management consultant to review the structural operations of the Personnel Department
and to make recommendations for improvements, including issues of Diversity, Equity, and
Inclusion.
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Watertown's FY2023 Budget Policy Guidelines as Approved and Ranked
H. Continue to develop an evolving comprehensive IT master plan to ensure Watertown's
commitment to government technology leadership remains strong, including but not limited to
implementing the remaining recommendations of the City-wide Information Technology
Assessment.
I. Continue to enhance the capabilities of the Department of Community Development and
Planning by adding resources and/or redeploying existing resources.
J. Continue to enhance the capabilities of the Department of Public Works Forestry Department by
adding resources and/or redeploying additional resources for improving Watertown's public
shade trees and increasing the City's overall tree canopy by: (1) Developing a robust data
collection process for public shade trees in Watertown, and (2) Analyzing the data to determine
an action plan and to seek collaboration and partnership opportunities with community groups
such as Trees for Watertown.
K. Finalize re-use of the former north branch library, and the former police station.
L. Based on final City Council policy direction, develop a budgetary plan to meet the identified
need for DPW staging space.
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Watertown Town Council
Administration Building
.................. 149 Main Street
Watertown, MA 02472
Phone: 617-972-6470
ELECTED OFFICIALS:
Mark S. Sideris,
Council President Resolution#2012-
Stephen P.Corbett,
Vice President Resolution: Watertown's Ongoing Budget Policy Guidelines
John A. Donohue,
Councilor At Large WHEREAS the Town Council adopts budget policy guidelines each year pursuant to
Susan G. Falkoff,
Councilor At Large Section 5-1 of the Watertown Honic Rule Charter, so that the Town Manager call
Anthony Paloniba, develop budgetary goals and the Town budget for the next fiscal year, and
Councilor At Large WHEREAS for the past several years, annual budget policy guidelines have included
Angeline B.KOUnelis,
District A Councilor three sections of ongoing budget practices, namely Section 1. FINANCIAL POLICIES,
Cecilia Lenk, Section 11. ONGOING BUDGET PRACTICES, and Section V. BUDGET AND
District B Councilor FINANCIAL MONITORING, and
Vincent J. Piccirilli,Jr.,
District C Councilor WHEREAS the budget policy guidelines in these three sections have reached a point of
Kenneth M.Woodland maturity whereby they have become standard operating procedure, and do not need to be
District D Councilor rc\,iscd each year.
NOW THEREFORE IIE IT RESO1,VED that the "Town Council of the City known
as the Town of Watertown hereby establishes the following budget policy guidelines as
permanent policy guidance, to be followed annually:
I. FINANCIAL POLICIES
A. Unreserved fund balance: In order to respond to emergencies and other
unanticipated needs, preserve financial flexibility, and maintain favorable bond ratings,
the Town should seek to maintain all unreserved fund balance (including stabilization
,funds) equal to 7-10% ofthe annual operating budget. Tile Council and the Town
Manager will work to develop a formal inulti-year policy on the Unreserved fund
balance, including the use of free cash if the unreserved fund balance is above the 7-10%
target.
B. Capital Expenditures: In order to maintain and improve its infrastructure,
facilities, and equipment, the Town Should seek to make annual capital expenditures
(including debt and exclusive of enterprise funds) equal to at least 7.5-8% of the
operating budget.
C. Pension Liability and Other Post Employment Benefits: In order to achieve long
term financial stability, meet the Town's obligations to its employees and retirees, and
maintain favorable bond ratings, the Council, the Retirement Board and Town Manager
will work to address the Town's unfunded pension liability and other post-employment
benefits (OPEB). As was done with the unfunded Pension Liability, create a long-range
financial plan for addressing the unfunded OPEB liabilities, including the converting the
OPEB stabilization fund to an OPEB Trust Fund. Continue dialog with Retirement
Board and State representatives to consider options for pension reforms for new hires.
11. ONGOING BUDGET PRACTICES
A. Continue the Town's efforts within all departments to obtain grant funding from
federal, state, and other sources, including the use college interns,
B. Continue to analyze the Town's charges for licenses, permits, penalties, and fees
to determine whether they should be increased or new ones instituted, while adlicring to
the principal that fees should not exceed the cost of services provided,
C. Review the possibilities and cost implications of contracted services vs. staffing in
various departments.
D. Support the possibilities of providing more services on a regional or inter-
municipal basis in accordance with the council resolution.
E. All department heads should seek to identify line items within their existing
budgets where costs can be controlled and not increased. Look at other possible
scenarios including spending freezes, level dollar and reduction budgets. Review the use
of overtime in each department and monitor consistent Town-wide practices and related
utilization.
F. Continue to enhance the Town's website and use other technologies as cost
effective means of delivering information and services, increasing public awareness, and
encouraging public feedback,
G. Explore cost savings by sharing personnel across Town departments. Work
towards merging or combining the following functions to better serve both Town and
School Departments: facilities management, human resources, finance, and information
technology.
H. Meet annually in Executive Session(s) to discuss strategies on pending collective
bargaining agreements and the potential impact on upcoming and future budgets.
111. BUDGET AND FINANCIAL MONITORING
A. In order to improve its ability to monitor the implementation of the Town budget,
the Town Council will receive quarterly reports on the revenues and expenditures during
the fiscal year.
B. 'llie Town Council will receive a report On tile Use and balance of monies in the
Council reserve upon each transfer, and a report each month when there is a change in
Town Councilors' expense line items,
C. All early-warning system will be used to alert the TOW11 Council if revenues fall
below projections.
D. The Town Council will receive quarterly updates oil progress in addressing the
recommendations in tile annual audit report.
13E IT FURTHER RESOLVED that this resolution shall be incorporated by reference
into the annual budget,policy guidelines that are adopted each year.
00,
)e6,t,jnqJl Member
I hereby certify that at a regular meeting of the Town Council for which a quorum was
present, the above Resolution was adopted by a vote of' for, 0 against and resent
on Dece bei-A 1, 2012.
Vale�-ie,,Oa,pas Mark S. Sideris
Council Clerk Council President
Watertown Town Council
Administration Building
149 Main Street
w . Watertown, MA 02472
Phone: 617-972-6470
ELECTED OFFICIALS: Resolution# 2013-
Mark S.Sideris,
Council President
Stephen P.Corbett, Resolution: Watertown's Ongoing Capital Project Budget Guidelines
Vice President
WHEREAS the Town Council adopts budget policy guidelines each year pursuant to
John A. Donohue,
Councilor At Large Section 5-1 of the Watertown Home Rule Charter, so that the Town Manager Call
develop budgetary goals and the Town budget for the next fiscal year, and
Susan G. Falkoff,
Councilor At Large
i WHEREAS in the Fiscal Year 2014 budget policy guidelines, Attachment A
Anthony Palomba, "ADDITIONAL RECOMMENDATIONS ON CAPITAL PROJECTS" was included to
Councilor At Large
Angeline B. KOUnelis, use theTown's capital project funds in the most efficient manner, and to improve the
District A Councilor efficiency and transparency of the Capital Improvement Program (CIP)process, and
Cecilia Lank,
District B Councilor WHEREAS these recommendations have become standard operating procedure for the
Vincent J. Piccirilli,Jr., Town of Watertown, and (to not need to be revised each year.
District C Councilor
Kenneth M.woodland NOW THEREFORE, BE IT RESOLVED that the Town Council of the City known as
District D Councilor the Town of Watertown hereby establishes the following recommendations on capital
projects as permanent budget policy guidance, to be followed annually:
I. Status of existing capital funds and proiects: As part of the January CIP submission by the
Town Manager, include from each department, a listing of all existing unspent capital
funds (including Chapter 90, developer mitigation, grant funds, etc.) and a status on each
project or acquisition, including how and when remaining Rinds will be spent, effective
November 30th.
a. Include project funds appropriated by the Town Council to the School Department.
b. Include Water/Sewer Enterprise Fund reporting of capital projects & funds as a new
section of the CIP separate from the General Fund.
2. Details on new moicets: As part of the January CIP submission by the Town Manager,
provide details for all items in the CIP that have been previously shown as annual lump
sums in a single line.
a. Include the School Department's"various school improvements".
b, Include "highway reconstruction"and "sidewalk reconstruction", with a forecast of
streets to be done each year.
c. Include Water/Sewer Enterprise Fund capital projects as a new section of the CIP
separate from the General Fund, with a forecast of streets to be done each year.
d. Include transportation or water/sewer an([ storinwater projects which have or will be
proposed in the fixture, with no funding source yet identified.
3. Coordination Issues Related to Public Works vro-iects: The increasing volume and
complexity of public works projects requires a rethinking of how the Town does its
planning to maximize the use of capital funds and departmental resources, as well as
providing information to the public in a timely,readily accessible fashion.
a. To this end, the CIP needs to have a five-year forecast of what water/sewer/stormwater,
road reconstruction, and sidewalk reconstruction are planned, by specific street, which
will:
i. Insure that work is sequenced to obtain the maximum life from road and sidewalk
reconstruction without major water/sewer work compromising their integrity.
ii. Allow utility companies adequate time to plan underground service replacements prior to
road and sidewalk reconstruction, to avoid compromising their integrity.
iii. Allow time for the Zoning Enforcement Office to notify property owners of non-
conforming driveways, while giving the owners adequate tirne to seek a variance.
iv. Allow developers time to plan their projects in coordination with the Town, and avoid
digging up newly installed roads and sidewalks.
v. Allow abutting homeowners, who may want to pay for granite curbs on streets scheduled
for asphalt curbs,time to arrange contracting and payment.
vi. Allow time for the Trec Warden to notify abutters who may want a street tree in front of
their property, to allow for the placement of a tree pit prior to the installation of a new
sidewalk.
vii. Provide more transparency to citizens on public works projects and spending.
viii. Allow the Public Works Committee or other appropriate committee adequate time to
review the proposed work and provide policy guidance on the above as it relates to
Watertown's goals.
b. Issues of coordination and timing need to be improved to insure the most efficient use of
funds, and bonding Of annual street construction projects should be coordinated with
bidding such that contractors can begin by April and be completed by November.
c. The Public Works Department should address, on an ongoing basis:
i. ASSUrO adequate supervisory capacity to eliminate decision bottlenecks and improve
timeliness of responses for construction work.
ii. Notification to the public of what construction is happening and where and when it will
occur must be improved, and should be available on the wcbsitc and updated regularly.
iii. Improve conipletion of punch list items on projects needs to be improved, including
painting of roadway markings, installation of traffic signs, removal of temporary
Construction Signs, Cleanup Of Construction debris, etc.
4. Protection of investments: With millions of dollars being spent each year in Watertown
on street and sidewalk construction, the administration should take a more aggressive
role to protect the value of these investments to illsilre,that 111axillitim life is obtained
from the new surfaces.
BE IT FURTHER RESOLVED that this resolution shall be incorporated by reference
into the annual budget policy uideli ties that are adopted each year.
c on wil Mcmber
I hereby certify that at a regular meeting of the Town Council for which a quorum was
present, the above Resolution was adopted by unanimous voice vote on December 9,
2013,
Valdic Papas, Council Clerk Mark S. Sidevis, Comicit President
Watertown Town Council
Administration Building
149 Main Street
Watertown, MA 02472
ELECTED Phone: 617-972-6470
OFFICIALS:
Resolution 9 84 2017- R - 84
Mark S. Sideris,
Council President
Vincent J.Piccirilli,Jr., RESOLUTION: AMENDING WATERTOWN'S ONGOING BUDGET POLICY
Vice President GUIDELINES
Michael F. Dattoli, WHEREAS the Town Council adopted Resolution 2012-72 Jvatertoii)n's Ongoing
Councilor At Large Budget Policy Guidelines, to establish permanent financial policy guidance, and
Aaron P.Dushku,
Councilor At Large WHEREAS since 2014 the Town Council and the School Committee have been working
Susan G.Falkoff, on a plan for the renovation or reconstruction of Watertown's school buildings, including
Councilor At Large submitting Statements of Interest to the Massachusetts School Building Authority, and
Anthony 11alornba,
Councilor At Large WHEREAS at the Fiscal Year 2019 Preliminary Budget Overview presented on October
10,2017,it was proposed to self-fund a project to renovate or reconstruct three elementary
Angeline B.Kounelis, schools entirely within the operating budget, with funds redirected from the retirement
District A Councilor appropriation when the pension is fully funded, while also paying down the OPEB
Lisa J.Feltner, liability, and
District B Councilor
Kenneth M. Woodland, WHEREAS the value of the debt service required for such school capital expenditures
District D Councilor would exceed 8% of the operating budget as stipulated in Resolution 2012-72, and
WHEREAS the Town of Watertown wants a "strong" position for its financial
management policies to get the most favorable rates when going to the bond market for
such capital expenditures.
NOW THEREFORE BE IT RESOLVED that the Town Council of the City known as the Town of
Watertown hereby amends Resolution 2012-72 Wafertovi)n's Ongoing Budget Policy Guidelines, with
existing guidelines I.A and 1.13 to be deleted in their entirety and replaced with the following language:
I. A. Unreserved fund balance: In order to respond to emergencies and other unanticipated needs,
preserve financial flexibility, and maintain favorable bond ratings, the Town should seek to maintain an
unreserved fund balance (including stabilization funds) equal to 8-15% of the annual operating budget.
The Council and the Town Manager will work to develop a formal multi-year policy on the unreserved
fund balance, including the use of free cash, if the unreserved fund balance is above the 8-15%target.
1. B. Capital Expenditures: In order to maintain and improve its infrastructure, facilities, and
equipment, the Town should seek to make annual capital expenditures (including debt and exclusive of
the school Building for the Future Initiative funding and enterprise funds) equal to at least 7.5-8% of the
operating budget.
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BE IT FURTHER RESOLVED that this resolution shall be incorporated by reference into the annual
budget policy guidelines that are adopted each year.
Council Member
I hereby certify that at a regular meetina of the Town Council for which a quorum was present, the above
Resolution was adopted by a vote of for, 0 against, and present on November 28, 2017.
Marily Pronovost, Council Clerk Mark S. Sideris, Council President
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