City Council Gardner MA

The administration is moving toward a more conservative financial posture, introducing measures to prevent departmental overspending and launching an assessment to reduce the city’s non-emergency vehicle fleet. While the city maintains a “Double A Minus” (AA-) stable rating from S&P Global, rising health insurance claims and a 7% increase in retiree medical rates present ongoing budgetary challenges.

Audit and Financial Operations Update: City Auditor Karen Butler provided a comprehensive six-month update following her appointment in March 2026. The department has transitioned from a period of vacancy and corrective action to a state of operational stability.

Operational Recovery and Reconciliations: Backlog Clearance: Upon hiring, the department was five months behind on journal entries, budget adjustments, and reconciliations. Balance Accuracy: Cash and Accounts Receivable (AR) have been reconciled “to the penny” through July 2026.Policy Improvements: A new digital process flow has been established in the Munis system for journal entries to ensure all adjustments are reviewed and approved for accuracy. FY2026 Closing: The department is currently preparing tax recap forms, balance sheets, and “Schedule A” to determine the tax rate and “free cash” levels.

Risk Management and Compliance: Utility Rate Findings: The 2025 audit identified a lapse in utility rate updates that resulted in a lost quarter of revenue. New procedures are being implemented to ensure timeliness. Cybersecurity Vigilance: The Auditor reported a series of “phishing” attempts where scammers impersonated the city’s auditing firm (CBiz) to request fraudulent payments of $15,000 via updated banking information. A new policy for verifying supplier remittance changes is under review. Building Department Oversight: Policy failures regarding proper approvals for permits and licensing were identified and addressed by the Mayor and City Council.

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Strategic Financial Controls and Budgetary Oversight: The committee and administration discussed several new measures designed to enforce fiscal discipline across city departments.

Expenditure Safeguards: — Overspending Prevention: The Auditor and Mayor discussed utilizing “flags” within the Munis system to prevent users from processing Purchase Orders (POs) when a line item is in a deficit. Budgetary Thresholds: The Mayor has implemented a new policy requiring meetings with any department head whose line items are more than 25% spent at the end of Quarter 1. A separate safeguard exists for those exceeding 50% spending mid-year. Line Item Integrity: The administration emphasized that expenses must not be moved to “wrong buckets” to cover deficits, as this undermines budgeting and forecasting accuracy.

Asset and Resource Management: — City Vehicle Fleet Assessment: The administration is conducting a needs assessment of non-emergency, non-plowing vehicles. The goal is to reduce the fleet size and shift from per-person assignments to shared vehicle access to cut insurance, gas, and maintenance costs. Telecommunications and Postage: Counselor Mack suggested a 3-to-5-year consolidated contract for city cell phones to reduce costs. Additionally, the committee is exploring the use of departmental codes on the Pitney Bowes postage machine to track and budget mailing expenses more accurately.

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Infrastructure and Capital Projects: Wastewater Treatment Plant Aeration Improvements. The committee reviewed a $1.3 million borrowing order to fund critical upgrades at the wastewater treatment facility. Total Project cost is $5.9 million. Federal Grants are $4.6 million. Balance of $1.3 million is Sewer Enterprise Fund Borrowing. Necessity: The project is mandated by EPA regulations requiring decreased nitrogen discharge into the Long Island Sound and Connecticut River basins. Funding Source: The debt service will be paid by the Sewer Enterprise Fund, not the General Fund. These costs were built into the most recent sewer rate adjustments. Timeline: The project is expected to go to bid in winter 2026, with construction beginning in mid-spring 2027.

Capital Improvement Oversight Ordinance: A new ordinance (Item 1184) was discussed to strengthen transparency in capital planning. Transparency: Requires departments to notify the Council of project scopes and costs within specific timelines. Amendment: The committee adopted an amendment requiring the Mayor to designate a specific “Project Lead” (individual employee or official) for all major projects to ensure accountability and timeline adherence.

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Health Insurance and Benefits: The city is facing significant upward pressure regarding health insurance costs. Claims Trends: Health insurance claims for July and August 2026 were approximately $100,000 higher per month than the base expectations, totaling a $200,000 increase over the first two months of the fiscal year. Retiree Insurance (Medics): The rates for supplemental insurance for retirees (65+) will increase by 7% for the upcoming calendar year, effective January 1, 2027. Future Planning: The administration is working with insurance brokers (Hillboo Group) to develop a proactive “full package plan” by the end of the year to address rising premiums.

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Legislative and Administrative Actions: — Hazard Mitigation Plan: Received final FEMA approval and was recommended for adoption by the full Council.Surplus Property: Properties at 35-39 Graham Street and 67 Street were declared surplus following tax title proceedings under new state law requirements. Walsh Square: An order to designate an intersection as “Walsh Square” in honor of a former Council President was recommended. The cost for the sign is estimated at $200–$300, and a private donor has offered to cover the expense. Parking Meter Waiver: A proposal to waive downtown parking meters for the holiday season was removed from the agenda. Feedback from local businesses (60/40 split) suggests a preference for waiving fees only on Saturdays rather than for the entire month to ensure customer turnover.

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In practice, there have been variations from the statutory process. School Committee and Mayoral approval for most school projects is difficult to ascertain, absent, or never requested. The School Committee has inconsistently receives updates from the school administration and with a wide variation of details when updated. Similarly, the City Council has noticed a trend of requests for appropriations from the School Department coming at the last possible hour or with limited details.

Following a thoughtful discussion, the School Committee voted 6-1 to endorse the proposed amendment. This ordinance and amendment will now go through the Council’s legislative process and will be on Monday’s meeting agenda.

Follow the Money: Combating Scammers and Financial Oversight

Fiscal accountability and internal security were central themes throughout our September sessions. At our September 8 meeting, the Council formally placed on file the investigative review by Councillor Heglin regarding a sophisticated fraudulent vendor payment incident. Thanks to immediate, coordinated intervention by the City Auditor, Treasurer, DPW, and Police Department, nearly all stolen funds were successfully recovered. To protect our systems going forward, we are implementing stricter protocols, including mandatory dual-verification of vendor banking changes over the phone, enhanced internal controls within our Munis financial platform, and recurring cybersecurity training for municipal personnel.

Building on these protections, the Council advanced an ordinance on September 21 designed to institutionalize long-term financial governance and budget preparedness. Through an amendment adopted on the floor based on prior debated feedback, the ordinance now requires the City Auditor to submit monthly expenditure reports directly to the Finance Committee, guaranteeing ongoing fiscal visibility. In tandem with these reporting measures, we also advanced legislation establishing predictable multi-year review schedules for enterprise rates—such as water, sewer, and solid waste hauling contracts—to protect residents and local businesses from abrupt rate shocks.

Pumping the Brakes: Steering Away from Blanket Parking Bans

One of the most consequential debates of the month centered around a recommendation from the Traffic Commission that the Mayor passed onto us that would introduce a hybrid winter parking ban across the city. This hybrid proposal would have introduce a full-time ban, regardless of weather conditions, from January to March and on-call bans at all other times of the year. After careful deliberation and hearing from dozens of residents across every ward, the City Council voted unanimously, 10–0, to defeat the measure.

While clearing roadways quickly and efficiently for DPW plows and emergency apparatus remains a critical public safety goal, a blanket overnight ban disproportionately harms working families, multi-vehicle households, and renters who do not have access to dedicated off-street parking.

Rather than penalizing residents on clear winter nights, our focus must instead turn toward modernizing and testing the CodeRED emergency notification system, deploying clear informational signage and mailers, and enforcing the parking prohibitions that are currently in place during actual winter storm events.

September Wrapped Up

September has been an active, productive month across City Hall. As autumn begins, your municipal leaders have remained focused on strengthening internal financial safeguards, expanding intergovernmental collaboration, and enacting fair, sensible local policies that reflect direct resident feedback.

See you all next month! George.

View these infographics. CLICK IMAGE for larger view.

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86 Linwood Street (Cease and Desist): The Commission reviewed the status of repairs and plantings at 86 Linwood Street, an enforcement matter continued from July 2026. Mr. Duffy (homeowner) has hired a contractor to install required plantings. While the Commission noted that the initial work looked “good” in photographs, a dispute remains regarding tree height. Dispute Over Specifications: The Commission originally requested six-foot trees. The homeowner reported difficulty locating trees of that height, finding only three-to-four-foot specimens. The Commission “pushed back,” reiterating the requirement for taller trees. The applicant is currently reaching out to New England Wetlands and other sources to locate compliant stock. The enforcement order was continued to allow the homeowner more time to source the specified trees.

400 Clark Street (Soil Dumping and Vegetation Cutting): A new enforcement order was issued regarding unauthorized soil dumping and vegetation removal. The property owners have hired John Dick, an environmental scientist from Salem, to handle delineations and restoration. Research into the property revealed a 2019 order of conditions related to a detention basin intended to prevent overflow from Wilderbrook. This order was previously registered under “Clark Street” generally rather than the specific 400 Clark Street address.

282 Brookside Drive (Tree Removal): The hearing for Aean Ibram regarding the removal of approximately seven trees within the 200-foot riverfront buffer was continued. The primary point of contention is the Commission’s requirement for a Massachusetts Certified Arborist (MCA) or ISA certified professional to oversee the work. The applicant provided a late-hour email stating that arborist licensing is voluntary in Massachusetts (unlike Connecticut or Rhode Island) and claimed that local companies lacked these specific credentials. However, Commission members clarified that while the certification is voluntary, it has existed since the 1930s and represents a necessary standard of expertise. Members quickly identified several certified companies in the immediate region (e.g., Sterling, Worcester, Holden, Winchendon).

Conservation Agent Recruitment: Jason Stevens (acting for the department) provided an update on the search for a permanent Conservation Agent. The search has been narrowed down to top candidates, and follow-up questions have been sent. An offer is expected to be extended shortly. The Commission anticipates the new agent may start before the September 28 meeting, bringing much-needed “institutional knowledge” and “longevity” to the role.

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Some facts to note: Public Works Director Dane Arnold is in his 3rd decade serving the City. Airport Commission candidate Peter Kettle is a former airport manager. Dr. Kimberly Shea serves as the Dean of Nursing and Health Sciences at Mount Wachusett Community College. Officer Tanner Dumas is cited as a success story for recruitment following the City of Gardner’s exit from Civil Service. Officer Justin Johnson is a military veteran of the U.S. Navy. Committee members noted the high qualifications of this group of appointees.

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Financial Governance and Transparency: The Council processed several items aimed at refining the city’s financial oversight and ensuring the accountability of municipal funds. Increased Financial Reporting (Item 11870) – An ordinance was passed to its first printing intended to increase financial transparency and budget preparedness.

• Monthly Reports: Originally proposed as quarterly, the ordinance was amended by Councilor Heglin (supported by Councilor Brooks) to require the City Auditor to submit monthly reports on current expenditures to the Finance Committee.
• Institutional Backstop: Councilor Heglin noted the ordinance serves as a “backstop against loss of institutional knowledge” and ensures future councils have the necessary tools to make informed decisions.
• Five-Year Forecast: Councilor Brooks, a retired city auditor, expressed that while five-year financial forecasts are difficult to execute, the attempt is worthwhile, and revenue projections provided by the Mayor offer a necessary “early warning” for the spring budget.

Rate Review and Fee Schedules (Item 11891): The Council approved an ordinance creating a regular review schedule for water, sewer, and trash fees to ensure long-term financial viability.

• Water and Sewer: Proposals for rate changes will be on a five-year schedule with an annual review mechanism.
• Solid Waste: The ordinance adds timelines for solid waste hauling contract RFPs and requires a five-year forecast for expenses in the solid waste enterprise account.
• Urgency: While the ordinance focuses on even-numbered years (e.g., 2028), Councilor Brooks and Councilor Dernolowicz noted that water rates specifically may require review as early as 2027 based on current projections.

Oversight of Enterprise Funds (Item 11841B): A new position for a Golf Administrative Assistant was moved to its first printing to bring its compensation under official city ordinance.

• Regulatory Compliance: Councilor Mack clarified that Massachusetts municipal enterprise funds (under MGL Chapter 44, § 53F½) are not autonomous.
• Council Oversight: All salaries funded by enterprise accounts are subject to the same public scrutiny and Council vote as general department funds to prevent “autonomous salaries.”

Public Safety and Infrastructure: Rejection of the Winter Parking Ban (Item 11930) The Council engaged in a comprehensive debate regarding a proposed amendment to Chapter 600 of the city code, which would have reinstated a fixed overnight parking ban (November 15 – April 1). The motion failed 0-10.

Key Objections Included:

• Disproportionate Burden: Councilor Thibeault-Munoz argued the ban would fall hardest on low-income families, renters without driveways, and the elderly, who would be forced to walk long distances from designated lots in the dark over snow and ice.
• Current Infrastructure: Councilor Mack and Councilor Brooks noted that the number of vehicles in the city has grown significantly while parking requirements for new developments have been eased, creating a systemic shortage of off-street parking.
• Technology vs. Tradition: Several councilors, including Councilor Dernolowicz, suggested that with modern communication technology (Code Red, social media), a year-long or permanent calendar-based ban is unnecessary and “unduly burdensome.”
• Lack of Public Input: Councilors highlighted a lack of resident feedback during the planning stages and requested more research into alternatives, such as one-sided street parking during storms.
• System Effectiveness: Councilor Heglin noted that the “spike in tows” last winter was largely due to cyber-security issues with the notification system rather than a failure of the current storm-contingency policy.

Infrastructure and Land Court (Item 11935)

• Tax Title Proceedings: The city is becoming “more aggressive” in pursuing properties behind on taxes, with 22 properties currently in land court.
• Salt Shed Completion: The Council approved the transfer of remaining funds from the DPW salt shed account back to the city’s stabilization account following the project’s completion.

Public Education and Transport: Councilor Heath addressed ongoing issues with the Gardner Public Schools bus schedules.

• Driver Shortage: The delays are attributed to the turnover of drivers who leave after receiving CDL training. New drivers have been hired, but the training process takes approximately six weeks.

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Fiscal Year 2026 Year-End Financial Review: The COA successfully closed FY26 as of June 30, 2026. The financial strategy employed a “First In, First Out” (FIFO) approach to draw down older state grants before they expired. General Fund Performance: The general fund began with $64,519.52 and ended at a net zero balance. This was achieved through: Supplemental Appropriations: $4,525.99 provided by the city to cover deficits. Grant Transfers: $530.91 transferred from grants to cover salary adjustments. Salary Management: Surplus funds from a multi-month custodian vacancy were used to offset deficits in other salary line items, such as the department head’s mid-year salary adjustment.

Grant and Fund Management: The COA manages several accounts with overlapping timelines. The strategy involves reclassifying expenses between the revolving fund and formula grants to ensure maximum utilization of state funds.

Fund Type	Starting Balance	Ending Balance (FY26)	Notes
Gift Fund	$93,581.13	$102,754.70	Grew by 10% in FY26; held for future senior needs.
Revolving Fund	$31,923.85	$118,325.29	Expenses were reclassified to the Formula Grant to zero out FY26 state funds.
FY26 Formula Grant	N/A	$0.00	Successfully expended the full $89,000 cap.
FY24/FY25 Grants	N/A	Carryover	$13,239.25 (FY24) and $27,347.14 (FY25) remaining.

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Infrastructure and Operational Challenges: The COA is facing significant unbudgeted infrastructure expenses in the first quarter of FY27, specifically regarding the building’s elevator and roof.

The “Great Elevator Crisis of 2026”: A failed load test in June revealed that the building’s generator could not power the elevator under maximum capacity. Technical Failures: The elevator control panel and door sensors failed, rendering the unit unsafe for passengers for two weeks. Financial Impact: Estimated costs exceed $14,000, covering parts, labor (Raywire, Reborn Electric), and mandatory reinspection fees ($1,700). Logistical Adjustments: The CDC (occupying the upper floor) operated a provisional food pantry in the front lobby, while others utilized ramps to accommodate the outage.

Facility Maintenance and Utilities: Roof Repairs: The building has persistent leaks. Management is seeking proposals for membrane patching from Greenwood Roofing, as the roof “cannot go another winter” in its current state. Utility Deficits: Systemic deficits continue in energy and utilities. The FY26 utility expense was $21,000 against a $14,500 budget. FY27 is projected to follow this trend with an estimated $7,000–$8,000 deficit. Air Purification: Six existing units cost approximately $7,000 annually for filters. Due to these costs, half the units are currently offline, reserved for high-risk flu or COVID-19 spikes.

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Lifeline Program Success: The Lifeline program, once feared to be a potential financial liability, has proven successful in its first six months of standardized reporting. Financial Status: Ended FY26 with a balance of $8,822.69. Revenue vs. Expense: Monthly subscription revenue is approximately $2,600, while expenses average $1,400, yielding a monthly surplus of $1,200. Accounting Accuracy: Management has improved tracking by specifically allocating mileage and subscription costs to the Lifeline account rather than general grants.

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Governance and Administrative Updates: Bylaw Revisions – The board moved to recommend adoption of new bylaws to align with the Gardner City Charter. A final vote is scheduled for October 2026. Key changes include: Membership Expansion: Board capacity increased to 13 members and 5 associate members. Residency: Non-residents of Gardner are now eligible to serve as full board members. Voting Rights: All appointed members (1-year or 3-year terms) now hold equal voting rights. Annual Meeting: Shifted from May to January to align with the calendar year and officer elections.

Personnel and Volunteers: New Hire: Justin has joined as the new maintenance person, filling a long-standing vacancy. Volunteer Recognition: Scott Pomeroy and Pedro Santana were praised for maintaining operations during the summer and the elevator crisis. Santana, a student from Fitchburg State, is transitioning to a social work internship at the center.

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Notable Quotes: On Financial Planning: “Nobody should be surprised on September 15th… with absolute certainty we’ll have a deficit in repairs and maintenance on June 30th, 2027.” — Mike Ellis On the Elevator Repairs: “It’s going to be a big bill folks… I’m estimating 10 [thousand] and praying to God it comes in a lot less than that.” — Mike Ellis On City Support: “The city knows, the mayor knows… he’s like ‘Mike we got to get it done… this is the right thing to do.’ So we’re going to do it and we’ll figure out how to pay for it.” — Mike Ellis On Future Relocation: “In nine short months we can do this… at Waterford Street.” — Board Discussion

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Upcoming Initiatives: Health Clinics: Promotion of upcoming flu, pneumonia, and COVID-19 vaccine clinics. Holiday Programming: Thanksgiving and Christmas meal distributions are finalized. The staff will earn approximately 19 hours of compensatory time for holiday work, resulting in scheduled closures during the Christmas week. Move to Waterford Street: While specific dates remain fluid, city officials indicate a potential spring relocation after necessary repairs at the new site are completed.

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Case 1 Analysis: Variance for 623 West Street (Case 2026-07-01)

Overview: The applicant sought a variance for a residential property at 623 West Street (Parcel ID H32-19-6A) to address a 3-foot shortfall in the required 30-foot setback for a proposed deck.

Hardship and Environmental Constraints: The contractor and property owner presented evidence that the placement of the house was severely restricted by the presence of Wilderbrook and associated wetlands.

• Buffer Zone Restrictions: The Conservation Commission enforced a strict 200-foot buffer zone from the wetlands/river, pushing the building footprint toward the street and the side lot line.
• Topography and Access: The property’s layout required specific positioning to accommodate a circular driveway and a garage located underneath the dwelling.
• Planning Oversight: The applicant admitted that while better planning might have avoided the 3-foot violation, the current location was the most viable given the environmental constraints.

The Board conducted a site visit and determined that the encroachment was a “very minor clip” involving approximately 15 square feet of relief in a triangular area. Key considerations included:

• Neighborhood Consistency: Existing structures in the vicinity, such as a nearby service station and older homes, are already closer to the lot line than the proposed deck.
• Safety: The Board found no detriment to public safety or traffic flow.
• Conditions of Approval: The Board voted unanimously to grant the variance with a specific condition: the deck relief is granted for 6 feet with a maximum 1-foot drip edge (roof overhang).

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Case 2 Analysis: Special Permit for 100 Central Street (Case 2026-08-01) – Overview

Chair City Church, represented by Attorney Christine Tree and Pastor Dave, applied for a special permit under Section 1180 of the zoning ordinance. This section allows for the adaptive reuse of historic structures to promote preservation.

Proposed Mixed-Use Development

The project, located at the Henry Heywood House (built circa 1860s-1870s), proposes two primary functions:

1. Cafe/Restaurant (1st Floor): A 38-seat establishment serving coffee, tea, and light refreshments (pastries, crepes, and “ventless” cooked items like quiches).
2. Human Services Program (Basement, 2nd, and 3rd Floors): Facilities for mental health therapy, counseling, addiction support groups, and employment training.

Historical Significance and Preservation: The property is recognized as a significant example of the “aesthetic movement” in American architecture.

• Interior Features: The structure contains original stained glass (likely Irish), elaborate black walnut and curly maple carvings, unique fireplaces in every room, and mosaic tile entryways.
• Structural Integrity: The applicants emphasized that the proposed uses allow for the preservation of the grand central staircase and original floor plans, which would likely be destroyed if the building were converted into multi-family housing.

Technical and Operational Considerations

Category	Details
Parking	94 total off-street spaces available. Max calculated load is 69 spaces during peak hours (Sunday).
ADA Access	A ramp will be installed at the rear service entrance. Accessibility for the 2nd and 3rd floors remains a challenge due to the $300k+ cost of an elevator.
Cooking	Limited to microwaves, crepe machines, and ventless Turbo Chef ovens to avoid grease-laden vapors and extensive ventilation renovations.
Tax Status	While currently tax-exempt as a religious entity, the applicants stated the commercial portions (Cafe/Diner) are moving toward a taxable corporate structure.

Board Concerns and Inquiries

• Economic Impact: Board members questioned the necessity of another cafe so close to the existing Chair City Diner (also owned by the church) and the potential for “unfair competition” between non-profits and for-profit businesses.
• Operational Clarity: The Chair requested a “pro forma menu” to prevent “mission creep” regarding food service (e.g., ensuring a light cafe doesn’t evolve into a full-service restaurant without proper venting).
• Traffic: While no formal traffic study was provided, the Board noted increasing commercial activity on Central Street (a state highway).

Next Steps: The Gardner Historical Commission expressed strong support for the project, noting that few Haywood-era mansions remain intact. The ZBA has scheduled two site visits for October 1 and October 3, 2026. The hearing has been officially continued to the November meeting to allow the Historical Commission time to submit formal, non-binding recommendations.

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Key Testimonies and Observations

On Historical Value:

“When I first walked into this property… it was one of those odd, taking experiences that I had to walk into a property that was still preserved in such a way that you just don’t see anymore.” — Chris Pera, Chair of the Gardner Historical Commission.

On the Hardship of Maintenance:

“The property is very costly to maintain… heating is somewhere between $15,000 and $20,000 per season. How do we best leverage this property for our vision?” — Pastor Dave, Chair City Church.

On Preservation through Use:

“If you did not have a larger organization taking over this property and being committed to the preservation… you would have it chopped up, you would have it modernized… Gardner is going to lose something very special.” — Attorney Christine Tree.

On Legal Safeguards:

“I want to see what your game plan is and be honest with it… if we’re not careful and we don’t put a back end on this, the door is open for you to go where you want.” — Ray Lafond, ZBA Chair, regarding the cafe menu.

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Finally, the Mayor and Council President highlight a tightening financial outlook for the city, driven by rising health insurance costs and special education transportation expenses. They emphasize the importance of being proactive with revenue projections to maintain stability before the upcoming tax rate is finalized.

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The Gardner City Council advanced several ordinances aimed at increasing transparency in professional development spending and parking fee exemptions for veterans. Significant community support was evidenced by the acceptance of multiple donations for the police department, including a vehicle for the K9 unit. The session concluded with reflections on community health initiatives and the 25th anniversary of the September 11 attacks.

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