[{"_1":2,"_87":-5,"_88":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6195109,"mediaKeyId","3862839-068b0b6a5eeb2759b8fcf4c438543e10","parentId",3862839,"title","Council asks corporation counsel to review legality after $400K in water/sewer charges shifted off general fund","audioSeconds",873,"startMs",1345000,"endMs",2218000,"viewUrl","/Search/View?dp=1&key=3862839-068b0b6a5eeb2759b8fcf4c438543e10&start=1345&end=2218","thumbnailUrl","https://assets.pipeline.soar.com/3862839-068b0b6a5eeb2759b8fcf4c438543e10/thumbnail_1345000.jpg","articleUrl","/articles/6195109/Fall-River-City/Bristol-County/Massachusetts/Council-asks-corporation-counsel-to-review-legality-after-400K-in-watersewer-charges-shifted-off-general-fund","mediaUrl","https://secure.pipeline.soar.com/6195109-69b11348450f3d81dc6abe1ec906b981/orig.mp4?Expires=1771184435&Signature=Wv0Iw1hWb8VtfdQC2hVsTjs2n46KZnKMUEPUA2pY5mZoN6ELlouCEjU64lWUIY6jVnrdurOWcorsV9YCqD2iVdD360bPKeNaALPmw-f9hwT-6bQIQ0mVMg4~TL0kpt9R1oavoRdSR9Hhoz9ysgsEOAaSkgu8qmbLCNUS1CBq985EqOWnekvyta5rJsia7nUiczctVkQ-sr2pdEXD75pALBzCs~1rzu1lddcqRYdctdF-aIpIPKGZ2dY4WZPD4j45K0OszMHZx9FdKo7xMLpQdPLB6Sx1h23V7QgDaKuGPCyDPLBvMx7XZ6PqzAEuZ4xell36UfwG8MY2o9NSwMNyLw__&Key-Pair-Id=KUT5TJCACFTXG","author","Fall River City, MA","date","2025-06-17T02:33:03Z","article","Finance staff told the City Council Committee on Finance on June 11 that the FY2026 appropriation removes roughly $400,000 in water and sewer charges that general-fund departments would normally pay into the Water & Sewer enterprise funds.

Interim Finance Director Emily Arp said the change is a one-time measure to ease the general fund while the administration and the enterprise funds reconcile indirect-cost allocations. “The goal is to have it just be…it’s a one-time stop-gap measure for this year while we work through the indirect charges with water sewer,” Arp said. She said her office discussed the change with Water & Sewer officials, who expect to absorb the one-time cost by using stronger-than-expected FY2025 revenues and some capital timing adjustments.

Several councilors pushed back on the authority and fairness of the change. Councilor Dean asked whether removing those departmental charges would create an illegal tax or cross-subsidy under Massachusetts precedent, referencing Emerson v. Boston and noting the three-pronged legal tests that are sometimes applied to municipal utility and CSO charges. “If the municipality is not paying for it, then it becomes an illegal tax because then you’ve got a group that’s not paying for it,” Dean said.

Arp said the practice of not charging other municipal departments for water and sewer is not unique and that some municipalities do not bill internal departments. She told the committee the administration would ask corporation counsel to confirm that the accounting change does not violate legal constraints on CSO or utility charges. “Check and make sure — corporation counsel is gonna look into that and make sure that we are not in violation of anything,” she said.

Councilors also sought assurance the enterprise funds would not run deficits because of the shift. Arp said Water & Sewer projects it can manage the one-time reduction using available capital and stronger-than-expected revenues, and she stressed the change was not a permanent policy decision.

Next steps: the committee directed staff to get a legal opinion from corporation counsel on whether moving those charges into the enterprise funds without an intra-municipal charge violates state law or creates an improper subsidy; staff also said they will bring back reconciliation details and the proposed plan for next fiscal year as part of follow-up budget materials.","mediaType","Video","parentTitle","6.16.2025 Fall River City Council","oneSentenceSummary","Finance staff removed about $400,000 in water and sewer indirect charges from general fund departments for FY2026 as a one-time measure; councilors questioned whether that creates an improper cross-subsidy and asked the law department to review Emerson v. Boston–style tests for CSO/utility charges.","taxTitle","Fall River City, Bristol County, Massachusetts","taxId",4215,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6195115,"Fall River plans audit, transfer to plug roughly $2.3M health-insurance shortfall in FY2026 budget",8739,128000,8867000,"/Search/View?dp=1&key=3862839-068b0b6a5eeb2759b8fcf4c438543e10&start=128&end=8867","https://assets.pipeline.soar.com/3862839-068b0b6a5eeb2759b8fcf4c438543e10/thumbnail_128000.jpg","/articles/6195115/Fall-River-City/Bristol-County/Massachusetts/Fall-River-plans-audit-transfer-to-plug-roughly-23M-health-insurance-shortfall-in-FY2026-budget","https://secure.pipeline.soar.com/6195115-df0fcabe07e95111681242025ac0c2c3/orig.mp4?Expires=1771184435&Signature=c7akHm4wqJxTqsMr8t4vIzuzffqP5Z6vpmygacVW5jkAO8ciOhCrQps0yDV5dpcrHgozclUvqagSJvY-vpgZTPj2GtFRrCvuGwrj8mP9ttNAFIRPfqU8x6NwS5rsTqR8IndDen0rpChhVC5WA7q7jjg46OpUvXLNXwlGUWKXUWrxUH1ndU0IqlzHiYYuNwouVmdirCWA7gKNxqpwXcQA2ZeYalbu0HqJ78qSJCdDi3bLZxfTlqcvBCJGv2zkOLQQowfXCiIIlkvv3iDUz6dR2ObCQAChrDD1tRLt3o1aA6ZR26srmi7ABGFKyUyT8RJ3tsLBjDMqHxfo8bSwmMLEDQ__&Key-Pair-Id=KUT5TJCACFTXG","Interim Finance Director Emily Arp told the Fall River City Council Committee on Finance on June 11 that revised FY2026 health-insurance estimates require changes to how the city funds its employer trust fund.

Arp said the administration proposed using an anticipated $2.0 million transfer to raise the trust fund balance while ordering a detailed audit of the employer trust fund to “make sure that everything in the account is operating the way it should.” Diane LaFlaiche, a consultant with Gallagher, told the committee Gallagher’s projection for plan cost increases was 8.5 percent.

The committee heard repeated testimony that the employer trust fund has been underfunded in prior years and that the current shortfall was the result. “Over the years what has happened with our trust fund is that the city didn’t put enough into [the] trust fund,” said a council member during discussion, noting the gap has been discussed at multiple meetings. Arp said the combination of planned appropriations and the proposed $2.0 million transfer would put the fund balance near $2.7 million in a June 30 projection, but that the council’s target should be far higher.

Councilors and staff described a target employer-trust balance equal to roughly three months of claims plus incurred-but-not-reported (IBNR) reserves. Councilor Dionne asked for the recommended balance for claims; staff calculated three months of claims at about $10.5 million and IBNR at about $2.1 million, producing a target around $12.6 million. Arp said it will likely take several fiscal years and recurring appropriations — not one-time transfers — to rebuild the trust fund toward that goal.

Arp and Gallagher’s consultants repeatedly emphasized two near-term steps: a more detailed, forensic-style audit of trust-fund accounting and revenue flows; and continuing to increase the annual general-fund appropriation for health costs. “The first step, the biggest step, is the audit,” Arp said. She told the committee the audit will check that expenses that should be charged to the trust fund are charged there, and that revenues due to the trust fund are being posted correctly.

Diane LaFlaiche of Gallagher confirmed the firm’s projection of an 8.5 percent increase in employer costs for FY2026 and endorsed the administration’s use of conservative assumptions for rebates and stop-loss projections. Gallagher and city staff said prescription-rebate income is variable and is currently estimated conservatively in the FY2026 projections.

Councilors pressed administration staff on sustainability. Arp said the administration increased the FY2026 health appropriation by more than the 8.5 percent projected increase — describing a 14 percent step in total when previous one-time adjustments are included — and said the plan is to build the appropriation gradually over several years while auditing and reconciling outside agency contributions and other revenue flows. She acknowledged that using the existing fund balance is not a sustainable, long-term strategy but said it would cover FY2026 if the council approves the transfer under consideration.

Committee action: the committee voted to refer the FY2026 appropriation order to the full City Council for consideration. The committee discussion and the referral followed the administration’s resubmission of the budget and the consultants’ presentation of revised health-cost estimates.

What’s next: the audit scope and the timing of the proposed $2.0 million transfer are both dependent on council approval; staff told the committee they will return with audit findings and a five-year projection that includes trust-fund rebuilding scenarios if the transfer and budget are approved.","Interim Finance Director Emily Arp and Gallagher consultants told the City Council Committee on Finance the employer health trust fund faces a multi-year shortfall; the administration proposes a $2.0M transfer and a detailed audit while increasing FY2026 health appropriations.","actionData","errors"]

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Council asks corporation counsel to review legality after $400K in water/sewer charges shifted off general fund

Fall River plans audit, transfer to plug roughly $2.3M health-insurance shortfall in FY2026 budget