City Council certifies free cash, hears manager's State of the City and approves appropriation

City Manager Golden presented the city's FY2024 review and free cash certification and the City Council voted to appropriate funds at its February 2025 meeting.

The manager told the council that Moody's upgraded Lowell's credit rating in 2024 and that the city's stabilization fund will reach a record $16,900,000 after the appropriation. "Our free cash that is before you this evening is poised to tackle some of the thorniest issues that has evaded Lowell for decades," he said.

Why it matters: The council's action formalizes how unspent prior-year revenues and reserves will be allocated for capital maintenance, ARPA-supported projects and operating priorities; councilors and staff framed the vote as enabling repairs to municipal buildings, school facilities and infrastructure while preserving reserves that support the city's bond rating.

The presentation and discussion covered the city's use of ARPA funds, the new ClearGov budget portal, recent investments in roads and public safety equipment and planned school and park projects. The manager also summarized two large, multi-year economic development initiatives: an $800 million Lowell Innovative Network Corridor ("LINC") and the city's designation as a Front Runner City by the Urban Economy Forum.

Votes at a glance

- Free cash appropriation: Councilor Getchia moved and Councilor Mercia seconded a motion recorded in the minutes as: "That the amount $21,000,019,846 dollars and 0¢ be appropriate." The motion was approved by roll-call vote with all councilors present voting yes. (Roll call excerpt in transcript.)

- Grant acceptances (listed for transparency): the council also authorized acceptance and expenditure of a $109,314.02 Burn State Crisis Intervention Program award from the Executive Office of Public Safety and Security and a $84,500 Sustainable Materials Recovery Program grant from the Massachusetts Department of Environmental Protection (both authorized by recorded roll-call votes during the same meeting).

Supporting details and context

Finance staff and the manager described several revenue and expense drivers: unusually high investment earnings tied to temporary ARPA cash balances and favorable short-term rates; pothole and roadway work; $40 million in ARPA distributions executed before December 2024; and $27.8 million in recent capital work on streets and sidewalks. The finance team said investment earnings in FY2024 totaled roughly $9 million and cautioned councilors not to expect that level to continue.

Councilors emphasized that some enterprise funds still run at deficits despite ARPA offsets and urged continued attention to long-term capital planning for the water, wastewater, parking and school facility accounts. Several councilors and the manager said much of the one-time ARPA money was applied to deferred capital needs, and the manager noted the administration's plan to use free cash for preventative municipal building maintenance and to seed a facilities maintenance program at Lowell High School.

Ending

Councilors praised the administration's presentation and accepted the fiscal reports and ARPA status updates for the record. Staff said more-detailed committee-level briefings on FY2024 results and the FY2026 budget instructions will follow.