Council, CFO and schools continue talks on combined facilities and maintenance‑of‑effort review

City finance staff told the Lowell City Council they are continuing negotiations with the school department on a refreshed maintenance‑of‑effort agreement and on the concept of a combined city–school facilities department.

Why it matters: The maintenance‑of‑effort (MOE) accounting determines how municipal and school spending are reported under state education finance rules and affects compliance with state net‑school‑spending requirements. Councilors and staff said a combined facilities approach could capture efficiencies, clarify responsibilities, and reduce duplicative maintenance costs.

What staff reported: CFO Baldwin and city staff said they have met multiple times with the school business office and the DPW, reviewed work‑order data and are preparing a framework for negotiation. They noted many MOE categories (utilities, pensions, school nurses, etc.) mirror state regulations (603 CMR) and are unlikely to change materially, but process and custodial arrangements could be updated in a new agreement.

Council discussion: Councilors asked for transparency and suggested embedding an evergreen review clause to revisit the MOE every three years. Several councilors also urged that any consolidated facilities department be designed to protect student services while identifying operating efficiencies. Councilors asked CFO Baldwin to provide more accessible reporting and a public breakdown of MOE categories in the budget presentation so residents can see historical trends and reconciliation steps.

Next steps: Staff said they will continue negotiations and return to council with progress updates in the coming months. The manager and CFO indicated that a negotiated framework could be presented to the council and school committee for formal votes; the council asked for updates within two months.