Audit committee reviews new quarterly financial statement; CFO projects about $1.5 million shortfall

The New Bedford City Council Committee on Audit on Monday night heard a presentation from Chief Financial Officer Robert Ekstrom on new quarterly-style financial statements and projections that the administration plans to post on the city website.

Ekstrom told the committee the packet provides a one-page general fund summary by department and additional pages that break the figures down by object code and enterprise funds. He said the city’s year-to-date expenditures through December were about $211 million against an original appropriation he described as roughly $469 million, and that, at the time of the report, the administration was projecting “a million 5 in deficits.”

The report showed a small projected surplus for City Council of about $21,000 driven by a vacancy in labor accounts, while other departments are producing a mix of favorable and unfavorable variances. “Half of that is labor and another half is non labor items,” Ekstrom said of the roughly $1.5 million projection. He identified fire overtime as one major driver of personal‑services pressure and singled out solid waste for large non‑labor costs tied to higher tonnage and unusual items that required extra pickup.

Ekstrom also described an unexpected bill related to a vendor carryover tied to the prior solid-waste contractor transition, saying that the previous carrier invoiced the city and that “I think it was 360 or $80,000.” He said the administration covered the charge with a free‑cash transfer request and would pursue additional options if that funding were denied.

Committee members asked for additional detail and follow-up. Councillor Morad requested that for any department whose revised budget is $100,000 or more above the original budget, staff provide a one‑sentence explanation of the driver (for example, carryover encumbrances or a specific contract). Councillor Oliver asked whether department heads were having conversations to reduce costs; Ekstrom said department projections drive the process and that the administration has ongoing conversations with departments and labor where relevant.

Ekstrom said the packet will be posted quarterly to the city website, accompanied by a two‑page narrative “analysis” so readers can get a high‑level view in prose as well as the tables. He said monthly Munis extracts will continue but that the new reports are designed to look more like financial statements and to include quarterly accrual adjustments.

Procedural actions during the discussion included removing the item from the table so the committee could consider the report; Councillor Sean Oliver moved to remove the item from the table, and Councillor Morad seconded. The committee then voted to receive and place the communication on file (motion by Councillor Oliver; second by Councillor Morad; voice vote, ayes). After discussion and agreement to circulate the material to the full council and to provide clarifying one‑sentence explanations where requested, the committee later voted to table the item for future follow-up (motion by Councillor Oliver; second by Councillor Morad; voice vote, ayes).

Ekstrom identified several specific mechanics the report shows: the adopted budget can increase because of encumbrances rolled from the prior fiscal year; departmental projections feed monthly reconciliation forms; and object‑code views (personal services, purchases, etc.) show where pressure is concentrated. He pointed to fire staffing gaps — including long‑term leaves and military leaves that increase overtime — as a persistent source of overtime costs. He also noted that school expenditures are typically backloaded into the summer months and can make percent‑to‑date comparisons appear uneven.

The committee asked the CFO to leave print and electronic copies for councilors and the clerk’s office, and to circulate the packet to the full council ahead of related finance committee discussions. Ekstrom and staff said they would post the report and the planned two‑page narrative on the city website and include an explanatory guide to the columns so residents can read the table.

The meeting concluded with the committee tabling the item for follow‑up; members said they expect additional detail on specific drivers, and that the finance committee will take up related transfers next week.