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Newton City Hall
1000 Commonwealth Ave
Newton Centre, MA 02459
617-796-1000
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8:30am-5:00pm
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Mayor David B. Cohen
2009 State of the City Address
Monday, October 19, 2009
Newton City Hall
President Baker, Ladies and Gentlemen of the Board of Aldermen, I am pleased to be here this evening to present the State of the City. I want to welcome members of the School Committee and our legislative delegation, friends, employees, members of the public, my fellow Newtonians.
As we look upon Newton in the autumn of 2009, we realize that we face enormous challenges in the coming years. Chief among them are the need to control the structural deficit, and the need to continue to maintain the breadth and quality of our services in the face of severely limited revenue. These challenges are not unique to Newton. Virtually every community across the state faces a structural deficit, most far greater than our own. But in Newton we are forward thinking, strong and ready to meet the enormous challenges we face in the coming years.
That forward thinking is reflected in the initiatives we continue to implement even as we face the greatest economic downturn since the great depression.
That forward thinking is demonstrated in our new trash program. We have built on the City of Newton’s historic role as the first community in the Commonwealth of Massachusetts to have a community recycling program in 1971. Earlier this month we implemented the new automated trash and recycling collection system. This enormous undertaking involved delivering brand new carts – one blue for trash, one green for recycling – to every household in the city. With the cooperation and efforts of your Honorable Board, and with the diligent work of the Solid Waste Commission, under the able leadership of Alderman Schnipper, we examined trash data to be sure this was the right system for Newton.
Now underway, we can expect to reap the financial and environmental rewards of our new, transformational state-of-the-art collection system. I want to thank Commissioner Tom Daley and the staff of the Environmental Affairs Division Elaine Gentile, Courtney Forrester, and Angie Sotille along with Alderman Schnipper for the extra efforts they made to ensure this large-scale transition was as smooth as possible. In addition to realizing more than $7 million in cost savings by implementing this state-of-the-art collection system, we expect to see a substantial environmental benefit as well. In the parts of the city where we conducted the trial of our new system, the amount of trash which was generated actually decreased by 41% while the amount recycled increased by 18%. Our new system is a sound investment that will serve us fiscally and environmentally for many decades to come.
Our forward thinking is evident in the process of replacing all the residential and commercial water meters in the city with new ones that is currently underway. Once installed, the new meters will provide accurate and timely readings, while also enabling us to alert people of costly and previously unidentifiable leaks at their homes and businesses. Residents will be assured of being charged only for the water they use, and the city will realize cost savings, as we know older water meters measure less water than is being used.
We’ve also invested in energy conservation, upgrading or replacing older oil burners in 21 schools and the Ed Center, ten of which were changed to energy efficient natural gas boilers. This has not only resulted in a permanent, 30% reduction in fuel consumption in these buildings, it has saved the City $1 million in one year alone. We’ve also enlisted an Energy Savings Company to uncover energy savings in public buildings, swapped out streetlights and interior lights with energy efficient ones, and when constructing our two high schools, we’ve installed two state-of-the-art energy and water conservation systems. Good environmental policy is good fiscal policy, and we know these forward thinking initiatives will well-serve our environment and our bottom line.
Some key investments in our future manifest themselves in several public safety measures this year. Your Honorable Board approved $500,000 for a new Fire Engine to be housed at the fully refurbished Station 4 that is scheduled to be re-opened later this month. Including this new addition to the fleet, over the last nine years, and despite overall fiscal challenges, we have now invested nearly $3.5 million to purchase or refurbish seven of our 11 front-line Fire Department apparatus. The renovation of our seven fire houses continues as well. The $4.6 million needed for Station 7 has passed the Finance Committee and will be considered by your Honorable Board later this evening. Should the measure pass, design work will be soon finished and construction will begin shortly after the first of the year.
This year we have also secured top-notch experienced professional ambulance services for the City of Newton. Emergency ambulance care is the service which most dramatically affects the health and safety of our citizens. Whenever those ambulances are called it means that some family in Newton is facing a health care crisis. At those times the only thing that matters is making sure the care their loved one receives is the best. The selection of Cataldo Ambulance Service was the unanimous choice of the advisory committee, made up of city and medical professionals who oversee medical emergency services on a daily basis, and who based their decision on the sole criterion of which company is best suited to protect the public health and safety of Newton citizens. Beginning around the first of the year, we will welcome Cataldo Ambulance Service to Newton. With them the people of the city can be sure that should they or a loved one require it, the emergency care they receive from Cataldo will be the best.
And as we looked forward we recognized the overcrowding at Oak Hill and Day Middle School and the opportunity to expand Crystal Lake. I have docketed $1.4 million that is now before the Public Facilities Committee that would provide badly needed modular classrooms for the faculty and students at Oak Hill, and design funds for Day. At Crystal Lake, after our community came together in a public and thoughtful process, we used CPA funds to enhance the City’s holdings along the south shore of Crystal Lake. With these acquisitions, for the first time this past summer we offered residents a resource for passive recreation along the shore of this long standing community treasure that will well-serve the residents of Newton for generations.
Because we are a community that continues to cast an eye on the future, even as we face economic challenges today, we can address the challenges that face Newton from a position of strength.
That strength is reflected every day in the services that we provide. For each of the past 11 years Newton has ranked among the top 10 safest cities in the nation. And this year’s statistics show that crime is down by 20% year to date from last year.
That strength is shown in our Fire Department. Under the leadership of Chief LaCroix our Department is among the strongest in the state. He notes that the best fires are the ones that never happen, and over the past five years we’ve strengthened our fire prevention bureau. Chief LaCroix also notes that a critical aspect of fire fighting is having enough firefighters on the scene of the fire to fight it properly. In the metro-west area no department is better than ours at making sure we have enough personnel on scene at fires.
That strength is reflected in our schools, which continue to be among the best in the nation. The construction of the new Newton North is proceeding on time and under budget. Under the leadership of former superintendent Jeffrey Young and our interim superintendent Jim Marini, innovation, creativity and excellence are the system’s hallmarks. And the quality of our schools is inextricably linked to the quality of life in Newton.
One of the reasons Newton remains vibrant is because of the steady influx of new Newtonians who care deeply about community. Young families that could choose to live in any community in the nation come to Newton because of its public schools. In fact, Newton is such a desirable place to live that since 1998 the average value of a single family residence in Newton has doubled, from about $350,000 to about $700,000 today.
And that strength is shown in our solid fiscal condition. A triple “A” bond rating is a third-party assessment of our fiscal footing, and it is both an affirmation of the soundness of our fiscal policies and also of our fiscal strength. Newton is one of only two cities in the Commonwealth that enjoys that distinction. One of the reasons for that is that we are prepared for fiscal emergencies.
In reaffirming our triple A rating Moody’s rating service has repeatedly referenced how well we manage our money. We have created and carefully managed the health insurance trust fund to ensure that we have an adequate amount of funds to pay for our health insurance costs. We have been careful to provide adequate reserve funds to pay for any property tax abatements that are granted to property owners. And we had the foresight ten years ago to create a capital reserve fund to help pay for the long deferred building needs that loomed on the horizon.
Newton showed prudence in creating and funding these accounts and fiscal restraint in their management. Together with your Honorable Board, we have achieved surpluses in those accounts. As a result, when the financial meltdown stunned the nation and the world last year, when the state was in crisis from plummeting revenue collections, when communities were in crisis because drastic reductions in state aid forced them to make draconian mid-year budget cuts, Newton remained stable. We had the reserve funds to make up the shortfalls and keep every budgetary commitment we made last year.
And this year, in the face of even deeper cuts in state aid, other communities were forced to shut down fire stations, slash personnel, turn off streetlights and even close schools. But in Newton, even though our local aid was reduced by $3 million dollars, we unanimously passed a city budget which contains no cuts in city services and which retains excellence in our schools. We were able to do this because we had the foresight to keep on hand funds to meet the crisis.
This is my last State of the City Address and in January new hands will be steering the ship of state. It’s important that we hand over to that person a city that is in the best position possible to meet the twin challenges of addressing the structural deficit and delivering high quality services.
The forward thinking investments we have made coupled with our community’s strength and our longstanding prudent fiscal policies have prepared us to meet those challenges. We have some profound choices to make if we are to continue the quality of life the people of Newton are accustomed to. And we must continue working together to make progress on the fiscal issues before us for the rest of this year. And cooperation must continue with the new mayor when he or she takes office in the new year. I know the Board will be ready and willing to do just that.
For starters looking forward to the rest of this year, there could be more bad news on the way from the state which again we must be ready for. The Governor has indicated there could well be further reductions, mid-year, in store for local aid for the current year due to a $600 million shortfall in state revenues. Fortunately the city has $1.7 million available right now from our successful lawsuits against the telecommunications companies, and the state has certified that we have $6.6 million in free cash this year. I am also hopeful that the full Board will follow the recommendation of the Finance Committee and adopt the meals tax. If we act with prudence and restraint, with these funds, Newton will withstand projected further cuts in this year’s local aid.
Next year, fiscal year 2011, is not likely to be any better and could be much worse than the present one. In order to provide a cushion for the reductions in revenue that could occur then, we have been working to identify for the next mayor and next Board of Aldermen additional sources of funds.
For example, we received $2.2 million by winning one additional utilities case before the appellate tax board. Since the utility is appealing the case, we can’t spend the money yet. But as the case proceeds through the appellate courts some or perhaps almost all of it should become available in time for next year.
This and other measures will help in the short term. But if Newton is to comprehensively address the structural deficit for the future, we will have to take some difficult but important steps.
First, we have to look at compensation costs. Considering the historic economic downturn we are experiencing, we took the extraordinary step of not offering a cost of living increase to City employees this year. We have settled the superior officers’ contract which is before your Honorable Board and provides for no cost of living increase in this year and the next. If we are to avoid widespread service reductions in the near future, we cannot afford to offer compensation packages to our other unions that our revenues do not support. That’s why I believe that in the future, in considering any increase in the overall compensation package of our employees – and that includes steps, health insurance and cost of living adjustments – the city should look to the added revenues coming in to the city as a guide. It is only sensible and fair to share the pain when times are tough, and to share the rewards when times are better.
Second, escalating health insurance costs have been an extraordinary burden on our budget for the past decade. Over the past ten years, our health insurance costs have increased by nearly 10% each year. We simply cannot afford to allow health care costs to continue growing at this pace. Today thousands of municipal and state employees across the Commonwealth already enjoy the high quality health coverage of the state’s Group Insurance Commission (GIC). Entering the state system this year would have saved city employees roughly $1 million in their personal charges, and it would have saved the city between $5-6 million – a portion of which would have been passed on to employees. If we are to control our out-of-control health insurance costs, we must work with our union members and enter our employees into the GIC, a move that would not lessen the quality or comprehensive coverage they currently enjoy. We know that by working together, we can overcome this obstacle, and keep our employees well-covered while lowering the fiscal burden that has impacted our municipal budget year after year.
Two other common sense initiatives that would realize savings for the city are the expansion of our CityStat performance management system and the passage of the local option meals tax. We know that tracking statistics has been an important tool in our Department of Public Works, the Parks & Recreation Department and the Police Department. Expanding our capacity to evaluate our programs and services using cost-benefit data will enable us to deliver city services more efficiently and more effectively.
There seems to be consensus that we need the money that will come from a very modest ¾ of 1% raise in the meals tax. I believe the meals tax revenue is a tool given to us by the Legislature to cope with deep local aid cuts, a global economic downturn, and structural deficits facing many of the cities and towns in the Commonwealth, and we ought to use it. The measure passed the Finance Committee 6-0 and is now before your Honorable Board. If passed by your Honorable Board, meals tax revenue would mean $606,000 for this fiscal year, and it will exceed $1.4 million in recurring revenues each year thereafter. And while today’s fiscal challenges are daunting, we know that in the troubled times ahead, the meals tax money is essential to the City of Newton if we are to endure today’s and future fiscal shortfalls without resorting to painful cuts in the city programs and services that are taking place in communities all across the Commonwealth.
The times are challenging but Newton is a great city. I know that regardless of what challenges it might face in the future that greatness will prevail.
On a personal note, as I leave office I am filled with gratitude for having had the chance to serve the city I love for almost forty years. I think I’m most grateful for the literally thousands of people I’ve had a chance to meet over those years that I would never have met had I taken up another calling.
The diversity of backgrounds, points of view and personalities that I have encountered as mayor has enriched me personally and deepened my understanding of this very complex city. One of the things that has struck me most about just about all those people, whether we agreed or disagreed, was that we shared one very important thing in common. At heart we all wanted to do what we believed was best for Newton.
I also came to appreciate a group of people who, by and large, get very little recognition, but do so much to humanize city government and the city itself. Literally thousands of volunteers donate their time and their considerable talent and expertise to form the many boards and commissions the city has. Our city’s volunteers make the many special events in the city the successes they are, and they selflessly perform the tasks and give the extra effort that makes sure we do things here the right way. Our volunteers are an invaluable and indispensable resource, and their efforts transform a city of strangers into a community of neighbors.
You can’t survive as mayor without plenty of support on the home front. To my wife Laura, I thank you and I love you. To my mother and father: I am blessed to have you as parents. To my children Adam and Melissa: You are a continuing source of joy. And to my grandson Ilan in Seattle: I’ll be seeing lots more of you soon.
No mayor can do it alone and I also want to thank my office staff, Susan Burstein, Maureen Grimaldi, Mary Morgan, Sandy Pooler, and Jeremy Solomon. When the psalmist wrote, “thy rod and thy staff they comfort me,” he was definitely talking about my staff. I thank you for all that you have done for me, and all that you have done for this city.
Another group of people are really responsible for the day to day operation of the city. They are the ones who make sure that our streets are safe, our buildings in order, our parks are beautiful, our health and wellness are preserved, and our citizens are served. They oversee the programs and services everyone relies upon, and for the most part takes for granted. Newton’s department heads seek no public recognition. They take pride in a job well done and are devoted to providing excellence in the services they provide. For twelve years I and the citizens of Newton have relied upon you and you have never let me down. Thank you.
And also to the hundreds of city employees I’ve met. I and the entire city thank you for the job you do every day making Newton the best place to live. And I do want to say a word about the Newton firefighters. I know that we have had our differences over the years. But I want everyone to know: When the fire alarm rings putting lives on the line, we all know that there is no better group of men and women to trust your safety to.
And to all of the people of Newton and to this Honorable Board, I want you to know that whatever I may do in the future and wherever the path may lead, the greatest joy and greatest honor in my public life came from serving you and serving the people as your mayor. Thank you very much, and good night.