Ward 3 Councilor Andrew K. Surprise (WNG File Photo)
WESTFIELD – When it came time for the seven motions on the City Council’s agenda which addressed the creation of a Special Purpose Stabilization Fund for road and sidewalk repair and maintenance, Ward 3 Councilor Andrew K. Surprise moved to suspend the rules. He asked to take items F & G out of order, which referred to a Council resolution to ask the Mayor to propose orders dedicating 100% of the Local Option Meals Tax and Occupancy Tax to the special purpose fund, for immediate consideration and referral to the Mayor.
“We need the Mayor to fund what’s coming from stabilization,” said Ward 5 Councilor Robert A. Paul, Sr., adding that he had concerns in his ward that he would like funded out of stabilization.
“The issue was, you all got the memo today,” Surprise said, adding, “The memo today from legal stated that we are not allowed to dedicate the money.” Surprise was referring to a memo from the Law Department written by Shanna R. Reed,
Assistant City Solicitor regarding Special Purpose Stabilization Funds.
Reed wrote that MGL chapter 40 section 5B was amended by the Municipal Modernization Act in 2016 to allow a municipality to accept a provision that would permit it to dedicate certain revenue streams to a special purpose stabilization fund. “Although the change does allow a municipality to dedicate the fund, it still must follow the process of approval dictated by the municipality’s form of government,” Reed wrote.
She added that both the language of the statute and the language of the Department of Revenue solidify the basic concept of Municipal Finance Law that in “a city form of government, the Mayor initiates appropriations and the city council, as the legislative body, approves the same.”
Reed concluded that the City Council may, pursuant to the law, “accept a statute or a portion thereof by vote of the legislative body. Consequently, in this particular instance, the Council may vote to accept the statute and this office can provide a resolution to assist in that effort. However, any dedication of a funding source or further appropriation into said fund must be initiated by the Mayor.”
At-large City Councilor David Flaherty
After some discussion, Surprise asked to table to the next meeting the motions to request the Mayor to dedicate 100% of the local option meals and occupancy taxes to the fund. The motion (B) to accept the MGL chapter 40 section 5B was referred to L&O.
At-Large Councilor Dave Flaherty then asked to refer motion (H), “for the Law Department to prepare appropriate orders and/or resolutions, within 20 days, for the City Council to rescind the Local Option Meals Tax,” to the Law Department and L&O. Flaherty said the Law Department was willing to work with this and prepare a special order to rescind the vote.
“You want to rescind the meals tax that you want to dedicate to fund the Stabilization Fund?” Ward 2 Councilor Ralph J. Figy asked.
“So, you’re saying to me, that if the account isn’t set up, then you’re threatening this body to rescind the meals tax?” At-Large Councilor Brent B. Bean, III added.
Figy said according to Council rules, Flaherty’s request had to go through the Mayor.
“Has anyone called the Mayor? The Mayor has been really open and transparent about everything. Can’t he just talk with you about this? Just an observation,” Paul said.
