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CFO presents FY25 budget status: spending-monitoring tools, school transportation costs and enterprise‑fund issues highlighted
Summary
Chief Financial Officer Dr. Troy Clarkson presented a February FY25 budget update on Feb. 18, showing department-level spending trackers, noting overall city spending near target while flagging school transportation costs, rising insurance premiums and enterprise-fund retained earnings as areas for ongoing focus.
At a Feb. 18 Finance Committee resolve, Chief Financial Officer Dr. Troy Clarkson reviewed Brockton’s FY25 budget monitoring tools and current financial position and answered councilors’ questions about school spending, insurance costs, enterprise retained earnings and marijuana-related revenue.
Clarkson said the city’s monitoring spreadsheet showed the fiscal year was 62.47% complete as of Feb. 13 and that overall city spending was at 62.7% — near the target percentage for the year. He said some cells light up red when spending outpaces the expected percentage and that his office meets monthly with departments to review those trends and determine whether transfers or austerity measures are needed.
Several councilors raised specific concerns. Councilor Farwell and others pressed on collective bargaining and longer-term liabilities; Clarkson said previously negotiated step increases and other commitments already built into contracts will add roughly $4 million in personnel costs on July 1 absent negotiated changes. Councilors also pressed for more detail on how pandemic-era and CARES Act funds were distributed; Clarkson said the administration purchased software to track grantee performance and will provide a report on previously awarded CARES Act grants.
School transportation was a major point of discussion. Committee members noted several school line items that exceeded target percentages (for example, bus drivers and special-education-related transportation lines). Clarkson said the schools are pursuing route efficiency, have conducted a transportation audit, are seeking bids and have revised certain vendor contracts; he and committee members said they will provide updated reports to the committee as the year progresses.
The committee discussed enterprise funds and retained earnings. Clarkson said retained earnings are the enterprise equivalent of free cash and are composed of excess revenues and unspent budgeted funds; he reported water retained earnings were roughly $12 million last year and about $9 million remained after a recent $3 million transfer for a water-main construction project. He stressed the long-term goal of using retained earnings for capital rather than recurring operating costs.
Councilors asked for additional documentation on insurance renewals and broker fees after the city solicitor and CFO explained rising auto and property insurance costs and an unusually high renewal driven by claims history and adjusted building valuations. The committee requested renewal documents and broker-fee information before the full Council vote on the related transfers.
On marijuana revenue, Clarkson said tax receipts from the commonwealth are tracked and reported as general revenue; host-community fees historically used by some cities were challenged in court, and Brockton now reports only the taxed receipts it receives from the state. Councilors asked the CFO to produce a breakdown of marijuana-related receipts, which the CFO agreed to provide.
Committee members asked for monthly budget monitoring reports going forward and additional follow-ups on school spending, enterprise forecasts and insurance renewal documentation. The resolve to invite the CFO, mayor and auditor for the update was adopted.
