On Fiscal Responsibility
It has become quite clear over the past year that we are facing fiscal issues in Lowell, not unlike any other community across the Commonwealth. It has also become clear that we have been remiss in not fully funding our health care, pension, infrastructure and capital improvement funds.
- Our health care trust fund is currently funded in such a way that is “pay as you go”, with a couple of months worth of funding in place. In FY08, it will be mandatory that we begin to pre-fund those health insurance costs.
- Our Pension fund is currently funded at 60%. By 2028, the City of Lowell will be required to fund its Pension fund at 100%.
- The last Capital Improvement Plan was completed in 1999. In order to create a schedule for capital improvement, we must create a list and then prioritize the projects that will require investment. (Includes roads, buildings, parks, sidewalks, heavy equipement, etc.).
I believe that these shortfalls may be remedied with careful, frequent oversight of our spending and exploring new avenues for revenue generation. You as the taxpayer should know exactly how we are spending your money. This boils down to fiscal accountability and transparency.
Our city treasury cannot be a perpetual source of cash revenue to feed the never ending appetite of government. I support efficiency in government through attrition and the combining of departments and cross training our municipal employees to be able to step in and ensure seamless delivery of services. In addition, I support the use of technology to further these efficiencies. Service delivery in the City must be evaluated on an ongoing basis, ensuring that we are delivering services to you in a timely, cost efficient and exceptional manner. You are the City’s customer and deserve to be treated well.
Here are some ideas for areas where we may better utilize our tax dollars:
Waste Management and Mandatory Recycling. Every percentage point we increase our recycling , we save $55,000 in disposal costs. Quite conceivably, by raising our recylcing rate to 32% citywide, could save us approximately $1 million. Recyclable materials are in high demand, particularly overseas. The Taxpayer is paying to have their waste disposed of and then the waste company turns around and sells our recycled goods on the open market. As an additional source of revenue, we should be demanding a portion of the proceeds in the resale of our recycled materials from the Waste Management Company.
Centralizing Supply and Procurement for the City’s operations (ie: office supplies, services, fuel, electricity). In centralizing the procurement process, each department orders only what they immediately require and central supply has greater leverage in negotiating bulk pricing. Furthermore, if we were to enter collaborative purchasing agreements with other communities in the Merrimack Valley region, we lower our pricing to a greater degree because our purchase power has increased.
Re-Examine Health Care Service Procurement. The City of Lowell, as does every other community across the Commonwealth, pays an extraordinary amount of money each year to provide health insurance to municipal employees and their families. With double digit increases each year, we must take a hard look at how we can lower our cost and meet or exceed the quality of care currently delivered. Pending legislation, communities may be able to opt in under the Group Insurance Commission. While this may or may not be advantageous to the City, it certainly is a route worthy of exploration. Additionally, the creation of a wellness program for our City employees and their families, would go a long way in creating healthy habits and lowering our long term claim rates
In government, we must work to live within our means. This concept is no different than the processes you employ within your own household. I assure you, I will not ask you for more in taxes until I know that the City of Lowell’s financial house is in order.