2. A communication transmitted from Richard C. Rossi, City Manager, relative to the City of Cambridge retaining the noteworthy distinction of being one of approximately 36 municipalities in the United States with three AAA ratings from the nation's three major credit rating agencies.

I am pleased to inform you, the taxpayers, and all our residents that the City of Cambridge has retained its noteworthy distinction of being one of approximately 36 municipalities in the United States with AAA ratings from each of the nation’s three major credit rating agencies. Each year since 1999, the City has received these ratings from Moody’s Investors Service, Standard & Poor’s and Fitch Ratings. This achievement allows the City to invest more money into important projects throughout Cambridge with a favorable interest rate. The agencies highlighted the City’s conservative budgeting practices and prudent use of reserves to help keep tax levy increases at a moderate level to cover operating expenditures.

These ratings are in conjunction with the City’s sale of $35 million in General Obligation bonds, which took place on March 1, 2016. This sale will finance capital projects such as the King Open/Cambridge Street Upper School and Community Complex, sewer reconstruction, street and sidewalk reconstruction, and other municipal and school building renovations.

All three agencies have given the City a positive outlook. However, in reviewing Moody’s criteria, it is important that we continue to pay attention to the factors listed below to ensure our AAA rating in the future.

• Material growth in the debt burden
• Deterioration of the tax base or weakening of the local economy
• Trend of operating deficits that lead to a significant reduction in reserve levels
• Significant increases in pension and other postemployment benefit (OPEB) liabilities

Based on this ongoing recognition from the rating agencies, the City Council can be justly proud of its sound fiscal policies. Additionally, I would like to thank the City’s Department Heads and staff for their commitment to prudently managing their budgets and programs. The City is fortunate to have such a strong and dedicated team.

Attached are the rating opinions of Fitch Ratings, Moody’s Investors Service, and Standard & Poor’s Corporation.

Very truly yours, Richard C. Rossi, City Manager

O-5     Feb 29, 2016  Mar 14, 2016
COUNCILLOR MAHER
MAYOR SIMMONS
COUNCILLOR CHEUNG
VICE MAYOR MCGOVERN
WHEREAS: Harvard Square continues to be a major destination and hub for shopping, dining, entertainment and sightseeing, attracting residents and visitors from surrounding cities and towns and those from around the world; and
WHEREAS: The Harvard Square Business Association, which hosts its 106th Annual Meeting on Mar 4, 2016, has been promoting commerce in Harvard Square for all of its 106 years and has a proven track record of working closely and partnering with residents, students, neighborhood groups, Harvard University and the City of Cambridge; and
WHEREAS: The Association has been thoughtful in proposing enhancements to the Square that aim to make visiting the Square more interesting for the public than ever before; and
WHEREAS: The City of Cambridge has already taken the important step of appropriating $500,000 in the current fiscal year to conduct an engineering study of the Out of Town Kiosk and surrounding plaza and has further committed $2 million in FY ‘17 and $2 million in FY18 to undertake the full restoration of the Kiosk building and plaza; and
WHEREAS: Upon completion, the newly envisioned kiosk will be repurposed to better meet the changing needs of residents and visitors alike with enhanced communal features and uses including preserving the historic and iconic Kiosk, improving pedestrian safety and access, increasing open space and greenery, and adding state-of-art information and technology; now therefore be it
ORDERED: That the City Manager be and hereby is requested to form a special working group that will be tasked with developing a framework for the continued stewardship, curatorship and oversight of the historic Kiosk; and be it further
ORDERED: That the City of Cambridge and the Harvard Square Business Association develop a public/private partnership that will thoughtfully and purposefully continue efforts to support and promote commerce in Harvard Square while being good stewards of the public space by managing the fiscal and programmatic aspects of this important and iconic space.
ORDERED: That this matter be referred to Neighborhood and Long Term Planning, Public Facilities, Arts and Celebrations Committee for a hearing.

3. Resolution on the death of Margaret Carney-Myers.   Councillor Mazen

R-3     Mar 14, 2016
COUNCILLOR MAZEN
WHEREAS: This City Council is deeply saddened by the loss of Ms. Margaret Carney-Myers, who, on, Feb 2, 2016, at the age of 58 years, passed away in Okmulgee, Oklahoma; and
WHEREAS: Margaret was a longtime and beloved resident of Chalk Street in Cambridgeport; and
WHEREAS: Margaret was a devoted and loving mother to two children, Samuel and Sophie, seeing them through Graham & Parks and Samuel through Cambridge Rindge & Latin School; and
WHEREAS: Margaret was a cherished friend of many in Cambridge, known for her hospitality, wisdom, good cheer, volunteerism, annual holiday lights that extended into her street tree; and
WHEREAS: Margaret’s home and spirit embodied neighborliness and positive energy; her front door and gate were always open to friends and neighbors and she could often be found greeting others on her front stoop; now therefore be it
RESOLVED: That the City Council go on record extending its deepest sympathy to the family of Ms. Margaret Carney-Myers in their time of sadness; and be it further
RESOLVED That the City Clerk be and hereby is requested to forward a suitably engrossed copy of this resolution to the Carney-Myers family on behalf of the entire City Council.

8. Resolution on the death of Steven Warren Reckhow.   Councillor Maher

R-8     Mar 14, 2016
COUNCILLOR MAHER
WHEREAS: This City Council was deeply saddened at learning of the death of Steven Warren Reckhow on Feb 26, 2016; and
WHEREAS: Steven Warren Reckhow was born into a family that had a reverence for learning, nature and the exploration of all things, and grew up in Irondequoit, New York; and
WHEREAS: Steve graduated from Columbia University with a dual degree in civil engineering and urban planning, followed by graduate studies in public administration at Boston University and worked as a planner for the Southeastern Massachusetts Regional Planning & Development District and then as a planning and energy consultant at a small international consulting firm and later as an independent energy consultant; and
WHEREAS: In the 1980’s, Steve’s early interest in real estate grew to envision projects ranging from affordable housing to multi-family historic restorations in Cambridge; and
WHEREAS: Steve used his considerable talents as an engineer, planner and developer in focusing all of his efforts to make neighborhoods and communities more vibrant and sustainable; and
WHEREAS: Steve’s passion for urban revitalization, sustainable design and historic preservation was the driving force behind Neighborhood Design, a private development company he established with his wife and best friend Sylvia, and together they completed several residential and multi-use projects that won the prestigious Cambridge Historic Preservation Awards and have also contributed to the revitalization of the Mid-Cambridge neighborhood; and
WHEREAS: Steve was the beloved husband of Sylvia Jean Wheeler; and
WHEREAS: Steve’s passing will leave a void in the lives of all his surviving family, his siblings Anne Clarkson and her husband Chris, Robert Reckhow, Wayne Reckhow and his wife Barbra; his nieces Lynne, Nancy, Alyssa, Taylor, Jensen and nephew Grant Reckhow; his aunt Marge Meyer and uncle John Meyer and wife Marcia; and his cousins David and Tracy Meyer, Glenn Meyer, Emily Reid, David and Kenneth Reckhow and Gail and John Collins; as well as members of the Wheeler family, who looked upon him as a much loved brother to Robert and Kit Wheeler, David Wheeler, Elizabeth Scannell; and uncle to Wendy Belair, Christopher, Jeffrey and Jennifer Wheeler; and
WHEREAS: Steven will be sorely missed by all he touched and loved; now therefore be it
RESOLVED: That this City Council go on record extending its deepest sympathy for the family of Steven Warren Reckhow at this time of such personal loss; and be it further
RESOLVED That the City Clerk be and hereby is requested to forward a suitably engrossed copy of this resolution to the Reckhow family on behalf of the entire City Council.

O-5     Mar 14, 2016
COUNCILLOR KELLEY
COUNCILLOR DEVEREUX
WHEREAS: Cambridge’s residential housing is growing by thousands of units recently built and currently projected; and
WHEREAS: It is unclear who is living in these new units and what City services, specifically those associated with public schools or associated needs they will require; and
WHEREAS: The City should strive to meet the needs of all Cambridge residents, and accurate data on who is living in what types of units, both current and projected, will help the City and CPS plan for future needs and programs; now therefore be it
ORDERED: That the City Manager be and hereby is requested to consult with relevant City departments to develop data on residents of housing developments with 16 units or more to capture such demographic information as the City might find relevant for future planning, to include the number and age of residents, as well as the percent of owner-occupied units, broken down by unit size, specific building and building location; and be it further
ORDERED: That the City Manager be and hereby is requested to present the City Council with the findings.

TEXT OF COMMITTEE REPORTS
Committee Report #1
The City Council held a public hearing on Wed, Feb 24, 2016 beginning at 5:30pm in the Sullivan Chamber. [Note: This was a de facto meeting of the Ordinance Committee.]

The purpose of the hearing was to conduct a public hearing to discuss a zoning petition filed by Peter L. Cohen, et al to amend the Zoning Ordinance to restrict garage development in dimensionally nonconforming lots.

Present at the hearing were Mayor Simmons; Councillor Devereux; Vice Mayor McGovern; Councillor Mazen; Councillor Cheung; Councillor Kelley; Councillor Maher; Councillor Toomey; Jeff Roberts, Zoning and Land Use Planner, Community Development Department (CDD); and City Clerk Donna P. Lopez.

Also present were Peter Cohen, 11 Donnell Street; Charlie Teague, 23 Edmonds Street.

Mayor Simmons presided at the hearing due to Council Committees not being approved. She convened the hearing and explained the purpose. She outlined the format of the hearing. She noted that if comments were submitted by e-mail that they would be made part of the record. She then invited the petitioner to come forward.

PETITION
The City Council heard from the petitioner, Mr. Peter L. Cohen, 11 Donnell Street. He stated that he wanted to amend the zoning ordinance in a very modest way that is important to him and his family. He spoke about his neighborhood. The neighborhood contains modest two family houses, a few single family houses and a few triple deckers. His neighbors are friendly, but not intrusive. There is a sense of neighborhood. There are young families with children in the neighborhood. He noted that the scale and architecture of the homes in the neighborhood are located close to and face the street. Most homes have off street parking and there are a few garages which are separate structures tucked behind the homes. He stated that the exceptions are 10 and 12 Donnell Street have garages that were built into the main structure facing the street in a townhouse style. He further stated that 7B and 7C Donnell Street have a garage facing the street as part of the condominium structure but is located down a driveway and 50 feet from the street. He explained that in his residential neighborhood there are no residential units, old or new, with a garage facing the street. He did not want the urban landscape to change except when there is a compelling reason. He explained why this is an issue to build a structure where the main feature facing the street is a garage. Economic pressures could dictate an outcome that may alienate the neighborhood.

He stated that he lives next to property that is the subject of redevelopment. He added that there are other non-conforming lots that can be rezoned and will over time will be subject to the same redevelopment pressures and bad outcome. The amendment that he drafted applies to other properties and commented about unintended consequences. He spoke about the 9 Donnell Street which is the subject of the amendment which is a two family worker's cottage built in the l850's. Mr. Cohen proceeded with his presentation

He stated that the house at 9 Donnell Street is relatively small with a two car garage on a lot that is 6,000 square feet. This property was owned for sixty years by one owner but recently is in the hands of a developer. Because of the narrowness of the lot there is a push to remove the existing house. The current owner has brought the proposal to the Planning Board which has approved the proposal in principal which would have two different structures in the style of a townhouse, with a courtyard in the middle with underground parking underneath. The neighbors were told by the property owners that there is an alternative and they can build by right one long structure with a garage structure in front, view I is what the structure would look like from the street. It is his understanding that this is what the developer wants to build on the site with Planning Board approval. During the Planning Board hearing the Planning Board members questioned whether the development was economically viable. He stated that the zoning could be amended to prohibit this or the Planning Board could grant a special permit. He wanted to get ahead of this situation before the structure is built. He depicted a reasonable development that has a garage. He spoke about the technical and spiritual aspects of this proposal. He stated that 101 Orchard Street depicts frontage of a house and a garage. This amendment would only effect a narrow group of properties that are dimensional non-conforming lots where there is a garage. He spoke of the law of unintended consequences. He commented that developers are looking at lots as an economic proposition. He wanted development done in a tasteful way that does not upset neighborhood values. He stated that within the first 50 feet of land a garage should not be built, but could apply to the Planning Board for a special permit. He explained the structure of his petition. He stated that Section B (2) of his petition deals with demolition during the pendency period of the special permit application and covers historical signification properties that are being torn down. This will codify the current practice. Mr. Cohen stated that Section C deals with if the petition is challenged by developers and struck down this would just prohibit garages in the front 50 feet. He spoke about the memo written by Community Development start. He stated that language in his petition needs to be clarified. It is not the intention to prohibit parking rather where parking is put. He wanted to find a balance for the neighborhood and developer with neighborhood values being primary. He noted that the language in his petition needs refinement.

Peter L. Cohen, petitioner - Presentation (Attached)

CITY STAFF
Mayor Simmons requested Mr. Roberts to explain the memo from CDD.

Mr. Roberts spoke that the memo prepared for the review of the planning issues. He stated that the Planning Board will hear the petition on March 8. The memo contains an overview of the petition. The full impact of the petition have not been fully studied and Residence B is a common zoning district which contains about 4,000 lots and have not studied how many of these lots are non-conforming. It is not typical for lots to be narrower than the 50 foot lot width. In the current zoning ordinance between Articles Five and Six there are a set of different requirements pertaining to parking facilities, both in structured parking facilities such as garages as well as surface parking. There are restrictions currently in place for smaller lots and there is more flexibility. The issue raised with this proposal is the balance between the requirement that housing when created has to provide parking at one space per unit and must meet the dimensional requirement in the zoning verses having additional restrictions that would limit where the parking is allowed to go and be designed on the lot. Relief is sought by a special permit from the Planning Board or variance from the Board of Zoning Appeal. Mr. Roberts added that the petitioner did not some of the technical points made. One is that the proposed provision is cited in Article Ten, the procedures section, of the zoning. What is being proposed is more of a development control and belongs in Article 5 of the zoning. He commented on the terminology of multi-family which is standard term in zoning and building codes that refers to three units or more. Sections B and C in the petition that discusses procedures for special permit relief provisions are unusual compared to the way that special permits are typically provided for in the zoning. When there is a special permit provision there is criteria cited and if the Planning Board or BZA finds that the project meets the zoning requirements and the criteria outlined in the zoning then the special permit will be granted; variances require proving hardship to have the zoning requirement relieved. These provisions if passed needs to be reviewed to determine the legal appropriateness of the language.

Peter L. Cohen, et al., Zoning Petition - Community Development Memo.

PUBLIC COMMENT
At this time Mayor Simmons opened the hearing to public comment.

Charles Teague, 23 Edmonds Street, stated that he is the project manager for the lot that is the target of this petition. He noted that this project is targeted because it is next door to Attorney Cohen. He stated that this petition is illegal. He noted that for Part A there is a letter from the trustee of 9 Donnell Street, Mr. Robert McHale has been sent to the City Council and is written protest to the petition (COMMUNICATION #3). The memo points that Part A is illegal in Massachusetts and alleged that this is reverse spot zoning. This petition singles out one or more parcels and is more restrictive than other lots in the same area. He noted that the memo from Mr. McHale points out that it is unclear why the proposed requirements will only apply to such non-conforming lots and not to other lots in the same district. He stated that the quantity and characteristics of the parcels that will be affected by the Cohen petition must be known and that the petitioner did not do this research. He stated that he has had previous petitions that have been enacted by the City Council. He spoke of a previous petition submitted that failed to pass that contained language that a special permit may normally be granted to be in compliance with state law that a special permit may be granted. The public was questioning why special permits were always approved. He noted that it was disappointing that the City Council did not seek a legal opinion on this that was offered by the City Solicitor. He announced that the approval process is set by state case law. He noted that Part B of the petition tries to change the approval process and override state law. He concluded that this petition is a waste of time because it is illegal.

John Tittmann, 29 Kelley Street, spoke about the livability of the streets in Cambridge. This petition addresses an important issues. Street need to be built and a zoning process created that insures that streets are for people to walk on; not designed to make it more comfortable for cars. Convenient streets created for automobiles make it dangerous for walking. He stated that putting garage doors against street sidewalks is not good for urbanism.

Bill Wendel, 97A Garden Street, stated that garages will fade in importance in our lifetime. He stated that the question needs to be asked is what the future of garages is. Garages are being turned into livable space.

On a motion of Councillor Devereux public comment closed at 6:10pm on a voice vote of six members.

CITY COUNCIL DISCUSSION
Councillor Mazen agreed with the petitioners that cars are a dying breed and garages need to comport with certain ascetic qualities. He expressed his frustration with the neighbor/developer conflicts and that there is immense room for a win-win situation in this matter and that filing a zoning petition is a last resort. There is little attempt to make the developer happy because in this case the developer is someone in the neighborhood who owns property and wants to make money from the property. He stated properties should not be allowed to make money; it should be used for housing. In this situation the designs are not unseemly; the neighborhood could have helped with the designs. He noted that the antagonism is such that it would be difficult to arrive at a win-win situation. He felt that the reverse spot zoning character of this petition is illegal. He wants to say yes and this petition is not working in this vein. He expressed his frustration with this situation and wished neighborhoods could solve these problems substantively.

Councillor Devereux questioned Mr. Roberts if there is problem with garages in Res. B would CDD have been thinking about this otherwise. Mr. Roberts responded that this is not an issue that has been brought to his intention. He stated that he was not aware of garages being put into the front of small residential lots. The project cited by the petitioner is a case before the Planning Board and the deals with two separate structures on a lot. He stated that the provision of the zoning causes the developers to put forth a single structure design that is deliberately unattractive because the provisions of the zoning stated that the Planning Board has to make a determination that the development of two structures is superior to a single structure. Councillor Devereux noted that as long as this petition is active the developer is blocked from doing anything. She questioned if the special permit is granted does this petition stop the demolition and the development is less economically viable the longer there is delay. Mr. Roberts responded that the special permit was decided but the decision has not filed. He further stated that because the decision was not filed before the petition was advertised and if the zoning were adopted it would be effective retroactively to the date when it was first advertised. If the City Council choses to adopt the petition the Donnell Street project would be subject to petition because the special permit has not been filed before the first advertisement date. The current status of the Special Permit depends on what the City Council decides to do. The Inspectional Services Department will not issue a building permit if the project is in this uncertain stage of not knowing if the project conforms to the zoning. Before a building permit is issued this petition must be resolved.

Councillor Maher added that the work done would be done at jeopardy due to the petition. Mr. Roberts agreed that if a building permit were issued the developer would be building at risk and if the City Council adopted the petition the developer would have to alter the project or seek additional relief.

Councillor Maher commented that there is more going on than what is happening at Donnell Street. This is an extremely tight street and neighborhood and people are frustrated. He understands the frustration when people want to change the neighborhood. He is eager to hear what the Planning Board will say about this petition and how many properties this does effects. He added that this neighborhood has been under siege and the City Council has a responsibility to act on the changes to this neighborhood. He stated that changes will be coming to Concord Avenue.

Vice Mayor McGovern stated that he hoped that issues are resolved in a collaborative way. He stated that there is an issue on Kinnaird Street where a second dwelling was built with a garage in front that has caused concern for the neighbors. He wanted a legal opinion and what the PB has to say. He wanted to hear the risk that the City is taking on this matter. He stated that there is creditability on this. He wanted a legal opinion.

Mayor Simmons stated that this petition could be referred to the Ordinance Committee.

Councillor Toomey moved to keep the matter in committee. The motion carried on a voice vote of 6 members.

The following e-mails were received and made part of the report.
1. A communication was received from Mike Phillips, 57 Madison Ave, in opposition to the Cohen zoning petition.
2. A communication was received from Dexter Eames, 6 Avon Place, in opposition to the Cohen zoning petition.
3. A communication was received from Robert McHale, Trustee of the 9 Donnell Street Realty Trust, in opposition to the Cohen zoning petition.
4. A communication was received from Lewis Hyde, 8 Donnell Street, in support of the Cohen zoning petition.
5. A communication was received from David and Mary McElroy, 2 Garden Court, in support of the Cohen zoning petition.
6. A communication was received from Ellen Ezorsky, 15 Beech Street, in support of the Cohen zoning Petition.
7. A communication was received from Ellen Garber Stark, 14 Donnell St., in support of the Cohen zoning petition.
8. A communication was received from David Vogel in support of the Cohen zoning petition.
9. A communication was received from Kenny Likis, 9 Saville Street, in support of the Cohen zoning petition.

ADJOURNMENT
Mayor Simmons thanked all those present for their attendance.

On motion of Councillor Toomey the hearing adjourned at 6:30pm.

For the City Council,
Mayor E. Denise Simmons

Committee Report #2
The Finance Committee, comprised of the entire membership of the City Council, conducted a public hearing on Mar 3, 2016 at 5:06pm in the Ackermann Room.

The purpose of the hearing was to discuss the FY 16 budget and the FY 17 budget process. Vice Mayor McGovern announced that the meeting is being privately audio recorded.

Present at the hearing were Vice Mayor McGovern, Chair of the Committee; Councillor Carlone; Councillor Cheung; Councillor Kelley; Councillor Maher; Councillor Mazen; Councillor Toomey; Mayor Simmons; City Manager Richard Rossi; Deputy City Manager Lisa Peterson; Assistant City Manager for Fiscal Affairs Louis DePasquale; Ellen Semonoff, Assistant City Manager for Human Service Programs; Iram Farooq, Assistant City Manager for Community Development; Budget Director Jeana Franconi; Nancy Glowa, City Solicitor; Robert Haas, Commissioner of Police; Ellen Semonoff; Owen O'Riordan, Public Words Commissioner; Lee Gianetti, Director of Communications and Community Relations; and City Clerk Donna P. Lopez.

Also present were John Hawkinson, 2 Clinton Street; and Hasson Rashid, 820 Massachusetts Avenue.

Vice Mayor McGovern opened the hearing and explained the purpose. The meeting was the result of Policy Order # 9 dated January 25, 2016 (ATTACHMENT A) to discuss goals as they relate to the current budget and the FY17 budget.

City Manager Rossi spoke about the FY16 budget as it rolls into FY17 budget. He stated that the preparation of the budget is a top priority for a city manager as it affects the entire City. He explained that 80% of the budget costs are fixed costs which is where the budget starts from. It is no secret that Cambridge has high property values. All the departmental initiatives grow the budget in a positive way. Policy related issues are taken into consideration as well as the state budget. The budget process takes twelve months. Mr. Rossi stated that in Cambridge the budget is incredible. The police, fire and human services provided in the City has come about as joint effort with the city manager, city departments and the community.

Councillor Cheung noted that City Council committees have goal setting meetings. What is the goal of this meeting? Councillor Carlone stated that because goals were not set last term the budget is not affected. Councillor Cheung stated that he had meetings to develop goals for his committees and they roll up into the Government Operations, Rules and Claims Committee.

Mr. Rossi explained the process. He stated that the City Manager is responsible for preparing the budget and is impacted in many ways. A goal setting exercised is needed between the City Council and the City Manager. He stated that goals need to be broad but tell the story of where the City wants to go.

Vice Mayor McGovern gave an example. He is interested in having a shower bus for the homeless and would love for Cambridge to have this. Where does he go for this to be in the budget? Mr. Rossi explained that this is the type of thing that the City Manager and his team determine how this will be done. He cannot prepare a budget on the requests of nine different people; he cannot fund everyone's great ideas. Councillor Cheung explained his request for more money and governance for the IT budget; which took multiple years and this translated into budgetary money. Mr. Rossi stated that this needed a bigger process and this budget was increased over a long term process.

Councillor Mazen stated that the whole finance-City Manager team does a great job to provide a budget package. He spoke about balance between specificity and implementation. Mr. Rossi stated that from a policy point of view initiatives will come out in the committee process rather than by a policy order. The IT process was a more public facing process. Councillor Mazen noted that two major factors of the budget process that will indicate success. They are the latitude to cut spending based on discussions with the City Council to make some fiscal decision moving forward and the other is that the City Council would come together to establish projects which may not be a priority and to take a consensus list to give guidance to the City Manager. Mr. Rossi stated that in the end that he has to make a decision. He added that the personnel who run the city departments are the experts and he makes his budget based on this input and on the input of the City Council. Councillor Mazen stated that if this is done as package the City Manager can tell what can be done on this list. Mr. Rossi stated that this budget meets the needs of the community.

Vice Mayor McGovern commented that when Plan E is questioned the system works because of the checks and balances in place. He asked how can the City Council have an impact and have input into the budget process. Mr. Rossi responded that the majority of the increase in the City budget comes from the City Council. He stated that the needs of the community are great.

Councillor Carlone stated that he felt frustrated by the budget process. The City Council had little input. There is a 5-10 year plan and fixed costs due to salaries. He stated that more money needs to be put into affordable housing and that the childcare strategy makes sense. The City Council general goals is what the budget is based on and they are not very objective. Mr. Rossi noted that this is within the City Council's purview. This makes it easier for the City Manager to interpret. He explained that the City Manager has to have a balanced budget, fill the needs and protect the City. The City Council's responsibility is to adopt and approve the budget. The City Council can reject the budget or add to the budget. Councillor Carlone asked if the City Council is really involved in the budget process. He wanted a list of infrastructure project or housing projects so that he can digest this information. Mr. Rossi stated that the City Council is underestimating what impact the City Council has in the budgetary process.

Councillor Cheung stated that this debate is around the micro versus the macro issues. The City Council has to ensure that the City Manager is hiring competent employees. All the micro issues will wipe out the macro issues. Mr. Rossi spoke about a Policy Order that requires a study and the amount of work and time that is spent on unreal issues. He spoke about the time drain on employees is hard on everyone.

Councillor Cheung noted that macro stuff is being done well. He explained that he asked how to effect the IT budget and that he followed the instructions given by the City Manager. The City Charter is set up to limit the power of the City Council and the City Council has diluted power and there is currently more transparency.

Vice Mayor McGovern applauded the City staff and employees who work for the city. He added that the City Council has to be respectful of the City Manager's time and it is hard for an elected official to respond to a constituent that they cannot help them. Mr. Rossi explained that things that are not feasible may not go forward.

Councillor Mazen stated that the productive tension is the balance of what is appropriate. The process needs flexibility and needs input from the City Council. The City Council can get behind the budget and he wanted more leeway to create a budget that all are happy with. City Manager Rossi stated that this is not the way it works. It is his responsibility to prepare a budget. Councillor Mazen suggested that the preparation of the budget with City Council input may cause delay. Mr. Rossi stated that the City Council input is in the goal setting session. He stated that the laws on the budget must be read; they are written to protect the public. He cautioned about the loss of state aid. Councillor Mazen wanted consensus building so that there is input into the budget and asked how the goal setting sessions make their way into the budget process. Councillor Cheung informed the committee that he wanted participatory budgeting and there was a Finance Committee hearing and now Cambridge has participatory budgeting.

Councillor Carlone stated that his frustration is that the goal setting process was unproductive. Mr. Rossi stated that for goal setting process the city will hire a consultant to hear what the City Council wants and then the consultant will have a feeling of how things were done.

Vice Mayor McGovern stated that the School Department has guidelines which lists the values that have to be in the budget. Mr. Rossi stated that this is done on a departmental level all the time. Vice Mayor McGovern asked if it would be more helpful if the City Council meet and listed things they wanted in the budget. Councillor Carlone stated that he wanted more clarity on the impact. Councillor Mazen wanted to make the process easier with less pain.

Vice Mayor McGovern stated that Cambridge is in the envy of all other communities.

Councillor Cheung stated that he does not want to hire a consultant. The City Council can have committee hearings and report out overarching goals. Councillor Mazen stated that doing this in committees has too many moving parts. Councillor Cheung noted that there has been consistency in finding money in the budget for emergency needs.

Mr. Rossi explained the process when an idea is brought to him. Councillor Carlone spoke about City Council consensus. Mr. Rossi stated it is a good idea; but it is one on a list of good ideas. Councillor Mazen spoke about developing a patter for the City Council on what works and does not work. These discussion need to be before the City Council.

At this time Assistant City Manager for Fiscal Affairs, Mr. DePasquale, gave an update on the FY 16. He stated that the City Council is not giving themselves credit for the impact the City Council has on the budget. The budget process development takes a lot of time. The budget has grown 25 positions and it will increase in FY17. Mr. Rossi stated that this is due to the increase in programing. Mitigation funds has been purposed in the community and the money is helping nonprofits. Mr. Rossi stated that he is hearing that early childcare is only a City issue and he wanted the City Council to respond to this comment when they meet with the School Committee. He spoke about the City initiatives created by the City Council: such as STEAM, vulnerability assessment and early childcare.

Public Works Commissioner O'Riordan stated that there was a capital meeting held on street reconstruction. For FY15 $8 million was allocated; this year $4 million is allocated. He stated that in FY15 budget hearing heard about the problem of tree wells and money was put into budget to deal with this as well as funding for truck barriers; street clean and recycling. Mr. Rossi added that Net Zero is a big cost to the City.

Ms. Semonoff stated that second position was added DHSP for civic engagement. Funding was expanded for legal services for eviction protection and for food pantries. She stated that Baby U was created from a request from the City Council; transitional jobs program was also grown from a City Council request.

Commissioner Haas spoke about providing services for the most vulnerable and this is done by collaboration with many City departments. He stated that the work with youth has shown that there is a decrease in juvenile arrest. He spoke about the work with the elderly. Police work has been acknowledged nationally. He explained that 93.8% of his budget is salaries. He has two social workers on staff; this is not seen in other police departments. We are building and working towards a healthier community.

Mr. Rossi spoke about the Law Department budget working to provide better process on enforcement. He added that the City Clerk's has a great computer system and will be an advanced City Clerk's Office in the years to come.

Assistant City Manager for Community Development, Iram Farooq, spoke about the $3.3 million allocated for planning. The Net Zero process impact on the budget is a 25 year plan. The City Council has prioritized Planning Board improvements; funding for urban design and traffic analysis. She stated that the Planning Board will begin streaming their meetings. There have been updates to the inclusionary zoning; regional engagement; Mayors Compact, etc., Hubway; bike network planning and bike racks.

Mr. Rossi stated that no public project is created without input from the City Council. He stated that the City Council's fingerprints are all over the budget. This is a partnership and a clear City Council message helps the administration to implement.

Mr. DePasquale stated that 98% of property tax bills are paid on time and the City is at 99% to date. Last year there was a 16.28% increase in residential value. He spoke about the small number of application for abatements. He explained that revenue is coming in strong. Departmental budgets are in good shape. Budget issue this year is snow expenditure of $600,000 over what was appropriated. The expenditure is generally around $2 million. He stated that the School Department has a projected $500,000 - $700,000 deficit. These items will come to the City Council for a supplemental appropriation. Mr. Rossi stated that the benefit level for employees has changed due to City Council input. Mr. DePasquale stated that there is a $1-2 million surplus in salaries; health insurance has a surplus with a zero increase. Mr. Rossi stated that free cash should never be spent down; it is the City's insurance policy.

Mr. DePasquale gave an overview of FY17 budget. The School Department has the biggest gap; and the gap is closing without affecting the students. There is a 5.5% projected tax levy increase at the start of the process for FY17. He spoke about the modest tax levy increase. Water rates have had a zero increase for 5-6 years; sewer rates a 3.2% increase and it may go up greater this year. City is growing and the City needs to keep an eye on the budget and property tax increases.

Councillor Carlone thanked Vice Mayor McGovern for convening this hearing. Vice Mayor McGovern added that he will have a hearing on the goals.

At 6:29pm Vice Mayor McGovern opened the hearing to public comment.

Mr. Rashid stated that there is not enough money in the budget for the homeless.

At 6:30pm public comment was closed.

Councillor Cheung encouraged the City Manager to have the City Council committees hold hearings on the goals. He suggested having ideas held in a holding meeting for all new ideas.

Vice Mayor McGovern stated that after the Roundtable/working meeting with the School Committee on Mar 28, 2016 he wanted to hold smaller hearings with the City Council and the School Committee to have questions answered before the budget hearing so that the budget hearing is on budget items rather than curriculum issues. Mr. Rossi stated that departments are already executing their plan and when the City Council throws another program in it is difficult.

Councillor Mazen stated that it is important to address homelessness. It is unfair to say that nothing is done and that government does not have the amount of resources to address this issue. He stated that the problem is large. Vice Mayor McGovern spoke about the departmental services that have helped homelessness.

Vice Mayor McGovern thanked all attendees.

The hearing adjourned at 6:39pm on a motion by Councillor Cheung.

For the Committee,
Vice Mayor Marc McGovern, Chair