The Finance Committee met on Monday, May 11. See the video. Budget materials can be found on the City’s website.
Assessing (report)
Director of Assessment Administration Jim Shaughnessy presented the Assessing Department’s budget. Discretionary spending is $67,000, half of which is allocated to software licensing. If given additional funding, Director Shaughnessy would pay his staff higher salaries; with less funding, he would need to reduce staff. The department has four assigned cars. Shaughnessy noted that calendar year 2024 was the largest year for new growth in the past five years, but a 16–20% reduction in permit numbers and values in 2025 led to more conservative FY27 estimates. CFO Lemieux explained that last year’s new growth was $6.8 million and the five-year average of $6.1 million was used as the budgeted figure.
Councilors asked about village center zoning’s impact on assessed values (not enough sales data yet to draw conclusions); the reduction in the reserve for abatements overlay (intentionally lowered to free up operating funds, set at approximately $3.4 million or 0.75% of the levy limit); and the history of overlay surplus releases, including a $20.5 million release tied to an Eversource case that Eversource ultimately withdrew. CFO Lemieux noted that the City has not requested an overlay release since then, and that approximately $8 million could potentially be released, but the new administration has not yet decided how to manage those funds.
“The Committee took a straw vote to accept the Assessing Budget of $1,511,763, the supplemental CIP, and the CIP, which passed unanimously.”
Executive and Economic Development (report)
CFO Lemieux explained that the Executive Office budget was reorganized this year to more clearly separate Executive, Sustainability, and Economic Development functions. Economic Development moved from the Planning Department to the Executive Office, and a Deputy Director position was added, filled by Cheryl Lappin.
Director of Economic Development Lauren Berman and Deputy Director Cheryl Lappin described their work supporting existing and new businesses, developing stronger social media platforms, a community newsletter, and a concierge program to guide new businesses through the permitting process. They are collaborating with the Assessor’s Department to identify vacant office space, developing clearer branding for Newton’s village centers, and meeting with companies that have recently moved to Newton to understand their reasons for choosing the city. The Mayor has asked them to develop a long-term economic strategy by summer.
CFO Lemieux presented the Executive budget, noting the addition of Chief of Staff Dana Hanson and Chief of Community Services John Rice, as well as Chief Operating Officer Josh Morse. She explained the City’s use of $1.5 million of Free Cash in FY27 as part of a larger strategy for FY28 and beyond, and that the City plans to carry forward at least $5 million of this year’s Free Cash. She noted that a Pension Obligation Bond (POB), if sold within the next year, would provide approximately $10 million in budget relief and enable structural improvements. COO Morse and COS Hanson described the benefits of the expanded executive team, emphasizing cross-collaboration and improved support to department heads.
“The Committee took a straw vote to accept the Executive Budget of $2,519,929, the supplemental CIP, and the CIP, which passed unanimously.”
Sustainability (report)
Co-Directors of Sustainability Ann Berwick and Sam Nighman presented the Sustainability section of the Executive budget. Most of the budget goes to salaries for 3.5 FTEs and consulting to support the City’s BERDO program. A councilor read an email from resident Alan Nogee asking about plans to operationalize Climate Action Plan 2.0 goals, including protecting native forests, creating a biodiversity working group, and expanding green infrastructure. Co-Director Nighman said those questions would be addressed at an upcoming Climate Action Plan update to the Council. Co-Director Berwick noted the team’s “idea board” captures potential initiatives not yet included in CAP 2.0, including some related to Nogee’s questions.
Councilors asked about invasive species removal and whether the City has a formal plan. Berwick said the City will need to clarify how the CAP’s resiliency component is implemented in practice. Berwick expressed gratitude for volunteers including the Newton Conservators, Green Newton, Mothers Out Front, and the Newton Energy Commission.
“The Committee took a straw vote to accept the Executive Budget of $2,519,929, the supplemental CIP, and the CIP, which passed unanimously.”
Financial Services (report)
Manager of Financial Services Doug Botelho presented his department’s budget, noting that the Purchasing Department will be merging with Financial Services to integrate the City’s financial infrastructure across Purchasing, Treasury, and the Comptroller’s Office. He described initiatives including new time-and-attendance software with DPW, a vendor management platform to make the bidding process more transparent, and efforts to strengthen citywide data analytics.
Councilors asked how Botelho manages the department’s range of functions. He emphasized cross-collaboration and trust in his team. A recurring constituent question is why the city “pays the amount they do for certain services and products.” Manager Botelho spoke to cost fluctuation and the importance of transparency in financial decision-making.
“The Committee took a straw vote to accept the Financial Services Budget of $1,574,745, the supplemental CIP, and the CIP.”
Human Resources (report)
Director of Human Resources Michelle Pizzi O’Brien presented the HR budget. The FY27 budget reflects an increase of approximately $68,000 (about 5% over FY26), including salary adjustments and a new part-time Billing Analyst position. She highlighted positive recruitment and retention trends, significant hires, including the City Clerk and Police Chief, and ongoing efforts to recruit a Library Director. HR settled several union contracts in the last round of negotiations and rolled out new policies, including an updated non-discrimination policy, a telework policy, and commitments under the Pregnant Workers Fairness Act. New employee benefits include a life insurance plan with The Hartford, vision insurance with Altus, and an expanded deferred compensation plan through Nationwide. HR launched paid parental leave last month. In FY27 HR will implement a new applicant tracking system and expand Munis HR modules.
Councilors asked about AI use in HR (primarily for administrative support); upcoming policy changes affecting City departments over the next 1 to 2 years (the Pay Transparency Act of 2025, changes to paid leave, and accommodations for neurodiverse employees); and about 56 current vacant full-time positions. Pizzi O’Brien said the City remains an employer of choice but faces challenges filling entry-level positions due to public service demands, Newton’s high cost of living, long commutes, and competition from neighboring communities. She said an additional $200,000 would go toward additional HR staff and city-wide workplace culture commitments; a $100,000 cut would reduce outside consulting support.
“The Committee took a straw vote to accept the Human Resources Budget of $1,431,789, the supplemental CIP, and the CIP, which passed unanimously.”
Present: Councilors Grossman (Chair), Bixby, Greenberg, Malakie, Micley, and Silber. Absent: Councilor Charm.
City staff: Steve Curley, Comptroller; Maureen Lemieux, CFO; Doug Botelho, Manager of Financial Services; Endrit Poreci, Senior Analyst; Josh Morse, COO; Dana Hanson, Chief of Staff; Liam Hurley, NPS Assistant Superintendent and CFAO; Greg Gentile, Fire Chief; Shawna Sullivan, Commissioner of Public Works; Alex Valcarce, Commissioner of Public Buildings; Jim Shaughnessy, Director of Assessment Administration; Michelle Pizzi O’Brien, Director of HR; Mary O’Neill, Senior HR Business Manager; Sam Nighman, Co-Director of Sustainability and Acting Deputy Director of HR; Ann Berwick, Co-Director of Sustainability; Jenn Martin, Director of Transportation Planning; Lauren Berman, Director of Economic Development; Cheryl Lappin, Deputy Director of Economic Development.