Finance committee reviews multiple FY2026 revolving funds; most referred to full council

The New Bedford City Council Committee on Finance on June 18 reviewed a series of revolving‑fund authorizations for fiscal 2026 and voted to refer most items to the full city council, while tabling one request for additional information.

The revolving funds examined included accounts controlled by the Health Department, Community Services, Inspectional Services, the School Department, the Department of Facilities and Fleet Management (DFFM), Parks, Recreation and Beaches, and the Fort Tabor programs. Committee chair Councilor at large Linda Morad said the body would take funds individually and then consider whether to vote on them together.

Why it matters: the committee’s action sets the maximum amounts each departmental revolving fund may spend in FY2026. Those limits affect how departments operate and budget for personnel, building maintenance and program delivery without recurring general‑fund support.

Committee discussion and key details

Item 1 (Health Department compliance programs): The committee first received and placed the item on file, then voted to table consideration because the department director was not present. Councilor Ryan Perera moved to table and Councilor Maria Giesta seconded; the motion passed. Chair Morad said the administration’s chief financial officer could answer questions if needed but recommended waiting for the department head’s responses.

Item 2 (Adult Social Day Program, Community Services): Pamela, a Community Services staff member, told the committee the fund request for FY2026 is $330,000, up $30,000 from FY2025 “to cover step increases, health insurance costs” and to pay salaries for six full‑time positions. Pamela said the program’s revenue is primarily MassHealth reimbursements and that the two program sites now serve “close to 50” participants between them. The committee voted to refer the item to the full council with a positive recommendation.

Cash handling and internal controls: The committee raised concerns about off‑site cash collections tied to some revolving funds. Chief Financial Officer Bob said remote cash collection poses the highest risk and noted the city uses accounts receivable tracking and periodic petty‑cash counts to reduce risk, but that remote collections are “probably the highest risk in all of the city.”

Items 3 and 4 (Demolition of buildings and Vacant Building Registration, Department of Inspectional Services): Danny, an Inspectional Services staff member, said a large demolition (on Coffin Avenue) used much of the demolition fund and that last year’s vacant‑building account balance fell because the fund took in $53,000 and spent $116,000, leaving a fund balance near $185,683. Councilors asked for a written explanation of the difference between last year’s adopted balance and the current fund balance; staff agreed to provide that to the clerk before the council meeting. The committee referred the items to the full council.

Item 5 (Tangible Supply Disposition, School Department/DFFM/Police): The tangible supply account collects proceeds from disposition of scrap metal and auctioned surplus. Barry, a school department representative, said the school portion is being held to replace aging rooftop ventilation and other mechanicals at older school buildings. Jennifer, from DFFM, said the DFFM portion has deposited about $543,000 in total and spent $280,000, leaving a fund balance of roughly $262,000; for FY2026 she requested $60,000 to replace vehicles and furniture as needed. The committee referred the item to the full council with a positive recommendation.

Item 6 (Quest Center revolving fund, DFFM/Economic Development): Jennifer described the New Bedford Quest Center for Innovation as a city initiative to support entrepreneurship and small business. She told the committee revised revenue estimates put expected rent income for FY2026 at about $149,000 and projected expenses at $182,000, producing a general‑fund subsidy need of roughly $33,000. Derek from the Economic Development Office said the city is applying for a state grant this month that could fund additional build‑out and operating costs; staff said the grant application could reduce or eliminate the subsidy if awarded. The committee voted, by roll call, to refer the item to the full council (vote recorded 9–1).

Items 7 and 8 (Supportive Recreation revolving fund, Parks, Recreation and Beaches): Mary Raposa of Parks, Recreation and Beaches explained the account is funded by program fees, field permits and Rec Center rentals. The department absorbed vendor/consultant payments into the city budget this year, and DFFM provided building service estimates of about $26,496; Mary warned she may request an increase mid‑year if participation expands. The committee referred the FY2025 amendment and the FY2026 authorization to the full council with a positive recommendation.

Item 9 (Fort Tabor revolving fund): Mary also outlined Fort Tabor revenues — parking, beach parking passes, rentals and the Kennedy Summer Day program (about $90,000) — and said building maintenance expenses this year were about $60,000 because of roof and water damage repairs. The committee referred the item to the full council for approval.

What the committee decided: With the exception of Item 1 (tabled for follow‑up), the committee voted to refer the reviewed revolving‑fund authorizations to the full city council, generally with positive recommendations. Several councilors asked staff for additional written details before the council meeting (notably on the vacant building fund balance and the Quest Center fiscal projections).

The next step: referred items will appear on the full City Council agenda for final action; staff said they would provide requested clarifications to the clerk’s office ahead of that meeting.

Quotes (selected)

"This year, we are asking for $330,000 which is an increase from last year of $30,000. The increase is justified for step increases, health insurance costs that we have to absorb," Pamela, Community Services staff, said about the adult social day program fund.

"As best we can is probably the operative phrase there, because the space of remote collection of cash is the probably the highest risk in all of the city," Chief Financial Officer Bob said about off‑site cash handling.

"For the life of this fund, we have deposited approximately $543,000 of which $280,000 has been expended, leaving us with a fund balance of $262,000," Jennifer of DFFM said about the tangible supply disposition fund.

Ending: Committee chair Linda Morad closed the session after the referrals. Most of the reviewed fund authorizations will go to the full City Council for final approval; staff were asked to submit the requested clarifications to the clerk in advance of that meeting.