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CFO: Lowell certifies $8.95M free cash; council to consider appropriations and FY27 guidance
Summary
CFO Baldwin told the council that the city’s free cash is certified at $8,949,041 and recommended appropriations to replenish prior draws and fund priorities; the administration also issued FY27 budget instructions requesting departments submit 'plan B' 10% reductions.
CFO Baldwin reported to the council on Feb. 17 that the Massachusetts Department of Revenue certified Lowell’s free cash at $8,949,041 for FY25. Baldwin recommended using the certified funds to replenish previous withdrawals (including $2.8 million used to mitigate tax impact in FY26), to address parking enterprise shortfalls and a $2 million supplemental appropriation to the schools, and to meet the city’s policy of funding OPEB at 5% of free cash.
Baldwin said department heads were asked to submit FY27 budget requests plus an alternative 'plan B' reflecting a 10% reduction; he flagged fixed‑cost pressure points including debt service, pensions and health insurance and signaled a projected budget gap that staff will address in the coming months. The CFO added that the administration intends to deliver a balanced budget to the council in May to allow for public hearings.
Councilors asked for details about specific encumbrances and about the parking enterprise deficit; Baldwin explained the composition of the snow and ice miscellaneous account and said the city will report back with more granular line‑item detail. Council accepted the informational report and moved to place it on file.
