Mayor Rejects Compromise, Councilors Urge Action on Revenue
We need urgent action to provide school and city services residents expect and deserve.
July 25th Update from Councilors Bears & Collins on Mayor’s Rejection of Override Compromise Proposal:
We are disappointed to share that the Mayor did not accept our compromise proposal to place a tiered override on the November 2022 ballot and did not suggest an alternative compromise. We maintain that Medford voters should be trusted to make this major decision about our city’s financial future.
Given that the lack of Mayoral support would guarantee the failure of the proposal, we did not request to schedule a Special Meeting of the City Council this week, and therefore the deadlines set by state law will pass without action.
The City Administration is now back to square one with no plan to address the city’s structural deficit. We cannot endure more unsustainable cuts to city and school services and even bigger maintenance backlogs for our crumbling infrastructure, which the Mayor has warned are likely in the FY2024 city budget if the status quo prevails.
As individual councilors, the two of us remain focused on finding a positive solution, and we believe that a greater sense of urgency, more collaboration with the City Council, and improved transparency from the Mayor’s Office will help us get there.
Every Councilor has said at recent meetings that they are ready to work with the Mayor on a plan to address Medford’s financial challenges. We encourage the Mayor to reach out to the Council and move forward urgently and collaboratively with a plan to sustainably invest in our city’s present and future needs.
Original Post from July 20th, 2022:
Due to the dire financial situation exposed through the FY23 budget process, Councilor Collins and I proposed sending a $12 million override referendum to the voters to end the structural deficit and avoid budget and service cuts in FY24. The Mayor responded with a $3 million override proposal. Last night, the Council process was procedurally tabled for one week. Today, Councilor Collins and I wrote a letter to the Mayor suggesting a compromise, and we are awaiting a reply.
Read a detailed explanation of the $12 million proposal below. I’ve also provided links to the Mayor’s 7/19 override proposal, the 7/20 letter from Councilor Collins and myself, and the slides from my presentation regarding the $12 million proposal I gave at the 7/19 Council meeting.
Medford does not bring in the revenue needed to meet spending needs for city services, public schools, and infrastructure. Since FY2021, the City has had a “structural deficit” using between $6-12 million in one-time revenue to balance the city budget. This is unsustainable.
In June, the City Council made several recommendations, including a request that, by 7/14 the Mayor provide an alternative revenue plan to a Proposition 2.5 override that raises revenue needed to avoid further budget and service cuts in FY2024.
The Mayor’s initial response in June did not provide a detailed alternative revenue plan. On July 19th, the Mayor agreed that an override had become necessary and proposed a $3 million referendum that would go to the Medford Public Schools.
State law requires the Council to vote on a proposed override ballot question, the Mayor to approve that question, and submission of that proposed question to the Secretary of State by August 2nd for it to be on the November 2022 election ballot.
The proposed $12 million referendum would end the structural deficit, avoid budget and service cuts in FY2024, and support key investments in the Medford Public Schools, Department of Public Works, and Medford Public Library.
The final decision would still rest with Medford voters. If a majority voted “yes,” the cost impact would be $550/year or about $46/month for the average single-family home. The amount depends on each property’s assessed value and the new tax rate. You can calculate the specific impact for you at bit.ly/DLSTaxCalc.
In August, the City Council will be discussing increased exemptions and higher income eligibility for over-65 senior exemption as well as a potential residential, “owner-occupied” exemption to help residents most affected.
We can’t afford another year of austerity budgets that will negatively impact our community and future. We must trust Medford voters to make this major decision about our city’s financial future and ensure that no future cuts to essential staff and services in FY2024 and beyond.