City Finances

Leading up to the November 4 local election, the Newton Beacon asked candidates in competitive elections for mayor and city council how they would improve city finances in Newton.

John Chaimanis, City Council Candidate, Ward 4 At-Large: I believe that my expertise is unique and will be a valuable addition to the City Council.  I own and operate a clean energy investment business and oversee a staff of professionals.  Early in my career I ran the business and operations of a public charter school. I have a network of finance professionals, and connections with former finance committee chairs. A few areas I will focus on: Meet our retirement obligations as needed on time, as opposed to ahead of schedule, which we are currently on pace to do; Rebalancing the residential and commercial tax base; Newton needs a stronger focus on retail & commercial uses; Focus on funding capital projects with money that does not come from our tax levy, including using grants and donations; Where appropriate, work to develop public-private partnerships that help our tax revenues ‘go further’; Similar to universities, consider establishing an endowment in conjunction with a nonprofit, encouraging private donations where the income generated would be used for additional cash flow for specific city matters.

Cyrus Dahmubad, City Council Candidate, Ward 4 At-Large: First, we need to encourage new growth in the areas we have zoned for it, particularly in Village Centers and around transportation and commercial areas, by working to understand and reduce continued limitations and streamlining permitting and approvals to reduce the cost creating growth. This will help our village centers thrive economically. Second, we should study creating new areas for growth through “form-based-light” zoning in our underused and unused industrial/manufacturing areas; we should do this in such a way that creates options for the creation of residential, mixed-use, and commercial districts to best enable us to capitalize on revenue opportunities as they appear. Lastly, we should readjust the schedule and rate of our repayment of the pension board so that we are still meeting our obligations, while also ensuring that we have more funds available for our schools, open spaces, infrastructure, and other services.

Lisa Gordon, City Council Candidate, Ward 6 At-Large: I will be transparent about the City’s finances, reviewing expenditures and identifying opportunities to both reduce costs and increase revenues. This includes improving efficiencies through technology, pursuing new economic development while supporting existing businesses, and seeking out grant funding. I am excited to work together to advocate for the City’s long-term financial health.

Julie Irish, City Council Candidate, Ward 5: Newton has been under financial strain for years, and now risks losing more federal and state funding. The first step is to take a hard look at all expenses. With a $500M budget, we should be able to identify savings. As a new Mayor takes office, it’s reasonable to ask whether every position is essential, whether reallocations make sense, and whether costs such as outside consultants can be reduced. At the same time, we must prioritize increasing revenues by supporting and attracting new businesses. We also need to revisit and strengthen Payments and Services in Lieu of Taxes (PILOT/SILOT) agreements with large nonprofit institutions that own significant property but are exempt from property taxes. Finally, we must address long-term obligations such as pensions and bonds. This may mean restructuring debt, extending the pension payment plan, or considering an override in the coming years. I believe that by staying proactive and practical, we can put Newton on stronger financial ground.

Josh Kritzman, City Council Candidate, Ward 4 At-Large: In order to enhance Newton’s financial sustainability, we need to develop mechanisms to help us avoid over-reliance on state or federal funding. We’ve seen recently that revenue streams which seemed reliable, may be less certain than believed. But through innovative taxation, including maximizing our participation in state option local taxes, and growing our property tax base through reasonable and appropriately located development, we will ensure a more fiscally sustainable future. We should also continue to invest in renewable energy and infrastructure to reduce long-term costs. Whenever possible, we should also promote public-private partnerships for community projects to share financial risks and benefits. Finally, transparency in budgeting and spending will build public trust should the city need to ask for another override.

Marc Laredo, Mayoral Candidate: We will be transparent, candid, and clear regarding the state of the city’s finances. We will carefully review city expenditures to make sure that we are providing city services efficiently and effectively, and we will explain to our residents the important tradeoffs that we have had to make in order to live within our financial means. As noted below, we will take a more proactive approach to economic development which, in turn, will help the city’s financial situation.

Garry Miller, City Council Candidate, Ward 5: The city has spent far too long patching the city budget with one-time solutions. We need a longer-term solution to better match city revenues with expenses at a time of elevated inflation. That means finding savings wherever we can find it in the city budget. But for a longer-term solution, the only real options are to either ask for a Prop 2 1/2 override or work to grow and strengthen the tax base thru thoughtful development. Of these options, growth seems to me the best solution. This will take time, and the city’s finances may well require a boost before that happens. If so, an interim Prop 2 1/2 override is the most equitable solution. I would unequivocally oppose using fees for city services to close funding gaps.

Sean Roche, City Council Candidate, Ward 6 At-Large: To improve life in Newton across just about any area is going to require a sustainable fiscal outlook. The simple answer is growth, focused on two areas: * New housing development * Revitalized village centers and commercial areas New housing will be net revenue positive for the city, particularly if we encourage housing for groups like young professionals and seniors that are particularly underserved by our current housing stock. New housing in and around our village centers and commercial areas activates the those areas as economic engines. There is a huge regional demand for housing. Our village centers are perfectly poised to drive more economic productivity. We have the tools for a better fiscal future.