Holyoke Taxpayers Assn February 18, 2016

City Council President Kevin A. Jourdain Councilor At Large Ward 6 Councilor 2016 – Present City Council President 2012-Present

Education Bachelor of Arts, Economics & Political Science UMASS-Amherst Master of Business Administration, Anna Maria College Juris Doctor, Magna Cum Laude, Massachusetts School of Law

Professional Background Tax Examiner, Mass Department of Revenue Board of Appeals, Mass Division of Insurance Sr Financial Analyst, Sisters of Providence Health System Director of Managed Care, SPHS/ Trinity Health - New England (Current) Attorney At Law, Law Office of Kevin Jourdain (Current)

Avg. Tax Bill vs. Comparables

Avg. Tax Bills

TAX LEVY HISTORY 1850 Holyoke becomes a Town – Starts with Tax Levy of ZERO dollars FY 1999 Holyoke Tax Levy = $28,616,299 FY 2014 Holyoke hits Levy Ceiling at $52,995,199 (+$24.38 million/yr from FY 99!) Raised taxes as much in last 15 years as first 150 years! Holyoke does not have a Revenue Problem!

Budget Snapshot: 1999 to 2016

Budget Buster 1 STRUCTURAL DEFICIT FY 16, MAYOR SUBMITS BUDGET $4.5 MILLION IN THE HOLE. (others did too) COUNCIL CUTS $1.6 MILLION BUDGET ON JULY 1, IS $2.9 IN THE RED $2 MILLION IN RESERVES ARE NEEDED ANNUALLY TO COVER EXPENSES by JAN 1. HARDER TO CUT WHEN FY HALF DONE

Budget Buster 2 POLICE SPENDING $12.3 MILLION – UP 58% SINCE 1999 QUINN BILL LOSS OF $500,000 ANNUALLY OVERTIME IN EXCESS OF $1 MILLION CHICOPEE PD $9.8 MILLION (+16K RESIDENTS) WESTFIELD PD $6.8 MILLION (+1K RESIDENTS)

Budget Buster 3 RETIREMENT SPENDING $12.1 MILLION – UP 157% SINCE 1999 $156 UNFUNDED LIABILITY STARTING IN FY 17 SLATED TO GROW $600,000 PER YR UNTIL 2032 TO $27.2 MILLION (+125%) THIS FUNDING SCHEDULE IS IMPOSSIBLE TO SUPPORT. GASB 45 STILL LOOMING ($300 MILLION ?)

STABILIZATION FUND BALANCE 1999$8.7 MILLION BALANCE 2016$11.5 MILLION NO PRINCIPAL PAYMENT MADE SINCE 1999 INTEREST IS NOW BEING USED TO COVER STRUCTURAL DEFICIT. $450,000 IN FY 16 EARNING AVERAGE 4.5% OR $500K/YR INT. ONLY FOR LEGITIMATE EMERGENCIES KEY TO PRESERVING OUR BOND RATING

BOND RATINGS IN BALANCE “If the City has lost critical revenues that in the past have served to produce surpluses and balance the budget, then the city needs to consider what new revenue sources it will implement, or what cuts and efficiencies it will make, to preclude spending at a level that is unsustainable moving forward. This is not only critical to the impact on the rating, but more important, critical to the City’s success in accomplishing any of its goals.” Cinder McNerney, First Southwest

JOURDAIN PLAN CHANGE RETIREMENT FUNDING SCHEDULE OR PASS PENSION OBLIGATION BOND NO FURTHER REDUCTIONS TO STABILIZATION FUND PURCHASE 57 SUFFOLK ST FOR SCHOOL HQ BALANCE BUDGET BY JULY 1 NOT JAN 1 CLOSE THE STRUCTURAL DEFICIT ASAP – JOINT CMTE ON THIS ISSUE. SEEK OUTSIDE INPUT.

JOURDAIN PLAN (CONT’D) HIRING FREEZE FOR NON-PUBLIC SAFETY, AND NON-DEPARTMENT HEAD POSITIONS WATER & SEWER MERGER UNDER WATER DEPT LOBBY FOR LOCATION OF SHERIFF’S ALCOHOL TREATMENT CENTER AT GAH AT ATTRACTIVE RATES OR SELL FACILITY. COMPREHENSIVE CAPITAL BOND

JOURDAIN PLAN (CONT’D) CONTINUE TO SUPPORT STRATEGIC ECONOMIC DEVELOPMENT OPPORTUNITIES PROVIDE INCENTIVES THROUGH LOW COST CITY LAND SALES AND TAX INCENTIVES RETAIN HIGH QUALITY TAX COLLECTOR AND AUDITOR CONTINUE WITH GOVERNMENT REFORM AGENDA

JOURDAIN PLAN (CONT’D) FINAL THOUGHTS “WE KNOW WHAT MUST BE DONE, SO LET’S DO IT” “IF WE ALL LOVE HOLYOKE, DOESN’T SHE DESERVE OUR COURAGE AND BEST EFFORTS?” “WE ARE ALL IN THIS TOGETHER!”

Any Questions? Kevin A. Jourdain, Esq. 18 Raymond Ave, Holyoke (413) THANK YOU FOR YOUR TIME!