Rivera proposes $299M budget with 2 percent tax hike

May 15--LAWRENCE -- Mayor Daniel Rivera on Tuesday will present the City Council with a $299 million budget proposal for the city and schools that would increase the tax levy 2 percent, hire two police officers and three building inspectors, give Planning Director Theresa Park a $26,623 raise, contribute $2.4 million more to the schools than the $10 million the state requires, and put the city "on track to come out of state oversight," he said.

The budget would increase spending on the city side by $5 million, or 6 percent, to $88.6 million. On the school side, spending would increase $3.8 million, or 2 percent, to $184.7 million, most of which would be paid by the state. The amount for the schools does not include $25.6 million to pay tuition for students who attend charter schools, although the state would pick up most of that tab as well.

The 2 percent increase in the property tax levy would raise about $1.4 million but the impact on individual property owners can't be calculated until the City Council approves a budget, apportions the tax burden between residential and commercial properties, and then sets a tax rate. The city would collect an additional $2 million in property taxes on new growth, although the collections from personal property would drop $237,000 to $6.6 million, Rivera's budget projects.

Park's 27 percent raise would make her the biggest winner in the budget, boosting her salary from $98,377 to $125,000 in a single swoop. Rivera said Park earned the increase by bringing in $27 million in state and federal grants since he hired her four years ago, and noted she also oversees the Community Development and Inspectional Services departments.

He said Park's new salary would be similar to what comparable cities such as Lowell pay. Lowell Planning Director Diane Tradd earns $128,176 but she also serves as assistant city manager.

The biggest single increase in spending would be for employee benefits, which would rise $1.8 million to $27.6 million, including a $645,000 increase in the cost of employee health insurance.

Other sizable increases would go to the Police and Fire departments, where spending would increase $544,000 to $27.2 million, and to pay debt service, which would increase $574,000 to $12.9 million.

The increases in spending for police include $100,000 for professional training, $93,339 to hire the two new police officers, $90,000 to hire a new community liaison and the $212,916 salary of Roy Vasque, who Rivera recently promoted from lieutenant to chief -- making him the highest-paid city employee.

Vasque's predecessor, James Fitzpatrick, was paid a straight salary of $130,000 but he also received other payments that included $32,625 for any degrees past high school, which Vasque won't receive.

At the Fire Department, the increased spending includes $40,000 to hire a former lieutenant as a half-time budget specialist and a $5,262 raise for Chief Brian Moriarty, a 4 percent raise that will bump his salary to $130,000. The budget specialist would be the only increase to staffing in the department.

The budget also includes spending to pay salary increases that have not yet been negotiated with police and firefighters, although the funding for any increases is concealed in the general fund budget to protect the city's position in talks with the unions. The police and fire unions are working with expired contracts and the talks are now being overseen by the state Joint Labor Management Committee, which can impose a settlement if the talks fail, Rivera said.

Other contracts have been settled, including with the teachers union, where the raises varied depending on performance and longevity. The teachers' three-year contract will raise the starting salary to $45,000.

Rivera also recently settled contracts with the union representing the city's managers and supervisors. Among them:

* City Clerk William Maloney would get a 5.2 percent raise to $69,123.

* Recreation Director Nelson Ortez would get a 5.7 percent raise to $69,386.

* Purchasing Director Rita Brousseau would get a 5.1 percent raise to $70,564, and would receive another $5,000 in her salary that she had been receiving as a separate stipend.

* City Assessor Alexcy Vega would get a 2.9 percent raise to $72,097.

* Streets and Parks Supervisor Lance Hamel would get a 3.6 percent raise to $88,224.

* Veterans Service Director Jaime Melendez would get a 3.3 percent raise to $69,389.

Rivera and the nine city councilors would not get raises in the budget proposal nor would their staffs. Rivera earns $100,385, City Council President Kendrys Vasque earns $17,065 and the eight other city councilors earn $15,057.

The city's three enterprise funds, which collect their own revenues and are independent of the general fund, would run surpluses next year in Rivera's budget proposal. The sewer and water fund would run a $46,100 surplus in its $19.6 million budget. The parking fund, which runs the McGovern and Buckley garages and the open parking lots, would run a $32,874 surplus in its $758,615 budget. The airport would run a $12,000 surplus in its $589,384 budget.

Sean Cronin, who oversees city spending for the state and has veto power over its budgets and contracts, did not return a phone call Monday seeking comment on Rivera's budget proposal. His office would receive $53,500 under Rivera's budget, including $50,000 for professional services. Cronin is not paid for his work as fiscal overseer. He also serves as senior deputy commissioner of local services for the state Department of Administration and Finance, at a salary of $144,446.

The council has until June 30 to approve a budget. The 2019 fiscal year begins July 1.

Editor's note: This story was corrected to report accurately how fiscal overseer Sean Cronin is paid.

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