On its May 15th agenda, the City Council discussed a requesti by Mayor Fuller to appropriate $10 million from Free Cash to pay down that amount of the $50 million bonds for construction of the new Lincoln-Eliot school. The Mayor indicated that the annual debt service saved from this allocation ($600,000) would be used to help fund the gap in the Newton Public Schools budget not funded by the failed override. Finance Committee Chair Becky Grossman had placed the item on “second call” at the prior meeting and referred it to a Committee of the Whole to allow the Council to have a comprehensive view of all the items to be funded with Free Cash. The Committee of the Whole recommended approving this item, with five in favor and ten abstentions. Finance Chair Grossman noted that the Finance Committee currently has twenty-four items to consider for the City’s available Free Cash and the Council has only two more meetings scheduled before the June 20 deadline to vote on the budget.
Ward 4 City Councilor Lenny Gentile — who made it clear that he whole-heartedly supports funding for construction of Lincoln-Eliot and renovations to Horace Mann — asked the City Council to send the Mayor’s request to the Finance Committee to consider alternatives to the use of the $10 million. He suggested establishing a trust fund (a suggestion which he noted had originated with Finance Chair Grossman) to which the $10 million Free Cash and other surplus money might be added. Finance Committee Vice Chair David Kalis, who supports the proposal, read a letter from Ward 4 Councilor Markiewicz, who was not present but agreed with Councilor Gentile that keeping the $10 million in a trust fund — investing in Treasury Bonds with the current yield of 6% and using only the interest — would give the City more options. The interest earned on the trust (approximately $600,000) would be used for the debt service on bonds sold for the construction of Lincoln-Eliot and be available for other uses. Councilor Markiewicz assured the Council that Lincoln-Eliot would be built.
Some Councilors maintained that there was neither time nor need to send the request to the Finance Committee. Zoning and Planning Committee Chair Deb Crossley argued that “There’s plan on the table that works,” and suggested that the establishment of a trust could be considered next year. Ward 1 Councilor Maria Greenberg reported that Chief Financial Officer Maureen Lemieux could not assure her that the Horace Mann project would move forward. Ward 1 Councilor Alison Leary and Ward 6 Councilor Alicia Bowman support the Mayor’s plan and raised similar concerns about funding for Horace Mann.
Ward 1 Councilor John Oliver said that a “no” vote did not endanger Lincoln-Eliot — which is in Ward 1 — and consideration by the Finance Committee allowed for creation of other opportunities.
President Albright recommended that Finance Chair Grossman communicate the deliberations to the Mayor.
Fifteen Councilors voted to send the appropriation request to the Finance Committee, and eight voted against the motion.
