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The second informational presentation at Wednesday’s Finance Committee was for Community Development & Planning made by Director Liz Murphy.

Before she started, Liz Murphy wanted to attest that the Treasurer’s Office is going beyond this year to make sure tax compliance is in order. This has caused some frustrations with new businesses trying to open in Fitchburg because it takes a little more time as the office does their research and checks their compliance records.

The start of Community Development’s presentation was to tell who its customers were: developers (both business and housing), property owners, landlords, prospective property investors, small and large businesses, realtors, architects, and residents. Community Development also works with other departments as they help with finding grants, planning activities, as well as working along with the City Council. The Department also supports the Planning Board, the Conservation Commission, the Disability Commission, and at times the Historical Commission.

Community Development has three divisions: Planning Division, Economic Development, and Housing.

The Planning Division is focused on business and housing development, its expansion, its improvement, and its repair. They look at a piece of land and find a use.

A few of the upcoming projects with the Planning Division:

• The Kmart plaza redevelopment will be going before the Planning Board sometime soon.

• Possible updates to zoning due to the Housing Production Plan currently in the works. Once the plan has been submitted to the city, there will be discussions and recommendations to implement.

• Updates to zoning in order to comply with the new Clean Energy Siting requirements that the state has regulated. It will be a zoning overhaul that includes solar and battery.

• Changing of zoning to comply with ADU (accessory dwelling unit) regulations changes. The state now allows people to build ADUs on their property.

• There will be possible zoning changes around some proposals for social consumption. Social Consumption allows the on-site consumption of cannabis at licensed Social Consumption Establishments in the Commonwealth.

• The Development Guide also needs to be updated and needs an overhaul.. The guide was created before the city was using OpenGov and helps developers and businesses navigate the permitting process.

• A brand new Conservation agent is starting soon. Because most of the urban core has already been developed, most of the remaining land touches or is in proximity of a wetland. There’s a lot more that goes to the Conservation Commission now versus ten years ago. Anything that is within 100 feet of wetlands or 200 feet of a river/stream has to go before the Conservation Commission. It ends up touching a lot of vacant land at this point. The agent will also work with the DPW on stormwater enforcement and enforce regulations.

• A conservation restriction has been in the works at 77 Bennett Road that has been several years in the making.

The next division is Economic Development which has a Director and a Downtown Coordinator who is part-time grant-funded. Economic Development works with businesses for expansion, retention, direct them to resources, and to remove barriers if possible. The Downtown Coordinator does a lot of marketing and coordinating events. The Economic Development task force is coordinated to provide development review meetings for big projects that look to have all of the departments at the table to give feedback. These meetings help get projects through boards and have a smoother permitting process.

There were some project updates within this division:

• An Airport Site Readiness project is being worked on.

• In West Fitchburg, the focus is on industrial redevelopment, particularly with the former Greif plant. A grant has been received for the property adjacent to the plant that will allow for the Greif site to be studied.

• The department is moving ahead with its three-year Water Street revitalization project and working with DPW to replace sidewalks.

• The department will be applying for funding for next year for an update of its Economic Development Strategic Plan. They will also be implementing a tourism marketing strategy called “36 Hours in Fitchburg” that gives folks suggestions of what visitors could do in the city. The department is looking to create a Cultural District in Fitchburg but is waiting on the state to open cultural district applications.

• Amazon is set to open on Intervale Road in the Fall of 2026 if they stay on track. Economic Development wants to work with MassHire to do some CDL training because Amazon will need a ton of drivers. They want to do a training session for the local workforce to get jobs.

• There is a proposal for the Sandpit site on Airport Road for a new warehouse/distribution center. The sale is close and at the eleventh hour and already has been permitted by the Planning Board.

• Webpage updates and revamping are also in the works to meet the Cannabis Control Commission’s Social Equity requirements

The third division is Housing & Development. The bulk of Community Development staff is in this division. They do a lot of grant writing and manage grant projects. They also manage housing programs and projects, both market-rate and affordable housing. Affordable housing that has been funded has to be monitored for a number of years. This division also offers small business loans and manages the CDBG program.

Here are some of the things this division is working on:

• Implement the Digital Equity Plan with equipment being purchased and training happening at the Senior Center and the Library.

• Implement the EV Charger Project which may come to pass before the turn of the fiscal year.

• Expanding ticketing uses with IT, Building, Fire, and the DPW.

• 80 Lunenburg Street is currently being cleaned and the department has cleaned what it could of the contaminated soil with the state funding it had.

• Support of the ongoing market-rate housing development projects such as 280 Main Street, 533 Main Street, 350 Main Street, 84 Elm Street.

• 84 Elm Street is the former courthouse which the city bought from the state and then resold to the Tocci Group for development.

• The Iver Johnson Mills project on River Street is still ongoing.

• The Theater Block is now going to be housing with a retail front.

• Some other market-rate housing projects currently happening include Eleanor’s Lofts in West Fitchburg.

• The department is encouraging mill conversions in West Fitchburg as well though the area faces a sewer capacity issue that will need to be addressed.

• The murals on Mill Street are looking to be replaced and some of the frames have already been fixed up. The goal is to make it as low maintenance as possible.

• The department is working with a developer for a housing development project on Fairmount Street.

• MassWorks funding is being applied for improving Moran Square that allows for paving once construction is done.

• There is an EPA Brownfields grant that is for an assessment as well as a clean-up grant to remove contamination at John Fitch Highway after the demolition of the old Dunkins location.

• At 173 Bemis Road, the old vacant gas station has also had some clean-up work done. Grants have been applied for to both demolish it and clean it up further.

• The department is participating in the Green Communities Program to make energy efficiency improvements in various buildings such as last year when the non-LED lights were replaced at Longsjo and Goodrich Academy.

• Work is being done with the DPW with the Rail Trail Connector on Railroad Street. Phase 2 of the Rail Trail will be a pedestrian bridge from Railroad Street over to the intermodal center.

• Grant funding is available for sidewalk work on North Main.

• Signage for the Rollstone Hill Rock Walk

• In the next month, the city will be demolishing 7 3rd St, 580 John Fitch Highway (former Dunkins), and 104 Daniel St.

After the presentation, there were questions from the Finance Committee members.

Councilor Fleming was up first with questions on a few of the projects. She wondered if there would be a parking study done for the Theater Block housing project but the project does intend to provide parking on site. With a possible 100 units, there is a possibility of getting grant funding to build a parking garage next to the property for resident and public use as well. Main Street by City Hall to the Upper Common is lacking in public parking. The Theater Block project is in the early stages and hasn’t gone to the Planning Board yet.

Councilor Fleming’s next question was whether the funds for the murals were going to come out of budget. There was a little TDI funding left over from the Main Street project and those funds were transferred for them to be repaired.

Councilor Fleming’s third question concerned 80 Lunenburg Street. Even though the site is being cleaned with removal of toxic soil, is anything being planned or something being built there? There isn’t a specific plan for a specific project. The first need is to finish cleaning the site and then putting it back out to gain interest from developers.

Councilor Walsh had questions as well with the first being what was going on at the former Carol’s Dairy Bar at the corner of John Fitch and Summer Street. There is a proposed gas station and convenience store going there. Director Liz Murphy confirmed that it wasn’t a Cumberland Farms. The development is in front of the Planning Board which has asked for a traffic study before continuing the hearing. The Planning Board is aware of the traffic concerns of that intersection and the Fire Station across the street.

Councilor Walsh’s second question regarded the Amazon facility and the issue with the railroad bridge over Intervale Road/Poplar Street. Amazon has not committed to making physical improvements to the bridge. They are proposing and paying for new engineering of that road.

Councilor Walsh continued and asked what was going on with the Iver Johnson Mills on River Street. A little work is being done in one of the buildings to stabilize the roof. The developers were in a process to purchase a piece of property that was part of the Valley West Plaza that had been demolished but the sale has not gone through. According to Director Liz Murphy, her understanding was that the sale didn’t go through due to the discovery of old oil tanks that ballooned the cost. The Iver Johnson Mills project needs to find more parking but the developer is actively looking.

Councilor Walsh’s last question was about the TDI program on Water Street and whether the department would look at Lunenburg Street in the future for revitalization. Director Liz Murphy replied that the Councilor wasn’t the first to mention Lunenburg Street but that they needed to expand their focus on all of the gateways that come into the city. Lunenburg Street has had some new development lately.

Committee Chair and Councilor Cruz chimed in that Lunenburg Street was part of Ward 6 which was the highest revenue generator of all of the Wards. Ward 6 is the most economically successful but sometimes gets overlooked.

Councilor Beauchemin was up and asked about the Kmart plaza and what was going there. When he suggested BJs, Director Liz Murphy didn’t deny it but wasn’t sure if she wanted to be the one to publicly say it for the first time.

Councilor Beauchemin’s follow-up question concerned Amazon and the possible traffic caused by the facility, particularly on Bemis Road. The Planning Board is conscious of the challenges caused by Amazon coming in. One of their conditions is for Amazon vehicles to not be coming and going during rush hours and work off-hours, such as starting at 10 AM. One of the options could be demolishing 173 Bemis Road and using it as an opportunity to make improvements to the road. Another stoplight at that intersection might not work being so close to the Airport Road light but maybe a rotary could work.

Councilor Beauchemin’s third question was about specifics of the Sandpit site on Crawford Street. There is going to be a 114,000 sq. foot warehouse/distribution center built. It was going to be bigger but once they started doing soil testing they found there was a bunch of paper sludge as well as PFAS that went deep in the soil, causing expensive building challenges.

Councilor Beauchemin then circled back to 80 Lunenburg Street asking why that location could be used for commercial space instead of housing. From Director Liz Murphy’s perspective, that spot isn’t where commercial business is looking to build since there are vacant spaces available elsewhere. The property might be more ideal for home ownership, perhaps even a location for starter homes. Councilor Beauchemin continued saying he drives around the city and sees vacant apartments and the city keeps emphasizing that it needs more housing. He wants to see jobs in the area instead of people going to work outside of Fitchburg. He was worried that creating more housing would create more traffic. Chairman Cruz asked Councilor Beauchemin to reign in his questions to the budget outlook for the Community Planning department. Director Murphy said that housing is still a strong need in the city with the vacancy rate being pretty low.

Councilor Walsh had one last question, concerning the demolition of the former Dunkins on John Fitch Highway and whether it would lead to an interchange in the intersection. Director Murphy confirmed that was the intention. The timeline would be in multiple phases. After demolition, the DPW and the state would be looking for opportunities for funding and designing. If the state is getting more involved, the timeline could be 4 to 5 years.

Chairman Cruz asked how often the Economic Development Task Force meets. They meet once a month and Chairman Cruz wondered if the meeting could be something that was advertised to attract and help more developers. Councilor Beauchemin called a point of order on Chairman Cruz with Council President Zarrella addressing the point of order that Chairman Cruz’s question of advertising the task force was relevant.

Chairman Cruz wanted to know if there was an update on 44 Wanoosnoc Road. There is no update at this time but Director Murphy thinks there needs to be a walk through the building done. The School Department has been using part of the lower level as a workshop. A lot of the land around the property is wetlands or wetlands adjacent which limits development. There is a lot of pull between departments of what the building could be used for but requires funding(training center , warming shelter, etc).

The Finance Committee on Wednesday continued with its informational presentations from different city departments.

The first informational presentation was for the Treasurer’s Office made by Treasurer/Collector Michaela Horn.

The Treasurer’s Office is responsible for critical financial operations to keep the city running. There are 8 full-time employees that manage three divisions: Treasury/Collections, Payroll/Benefits, and Parking.

For Treasury/Collections, the office produces and collects 230,000 bills in a single year. This number includes 40,000 in real estate bills, 132 water and sewer bills, 4,000 personal property bills, over 42,000 excise tax bills (sent out between just March 2 and mid-April) already issued this year alone, and thousands more from parking and airport operations as well as other sources. These numbers continue to grow and only 2 employees are primarily responsible for collecting all 230,000+ bills. 1 person is responsible for reconciling 37 city bank accounts.

The office is currently managing 35 land court cases, with one case that goes as far back as 2007. This year the office introduced tax lien notification letters and expanded the use of payment agreements with residents. Since July 2024, the city had over $3.8 million in outstanding tax liens. With the office’s new strategies, they have recovered nearly $950,000. The office has taken new steps in lien enforcement. For the first time, last Fall the Treasuer Office issued 1600 water lien notices and placed 1200 liens on tax bills.

The Payroll/Benefits division with just two staff members supports more than 1700 employees and more than 1000 retirees. One employee manages the entire payroll operation while the other focuses entirely on benefits administration. This division over the past year secured 20,000 in wellness credits at no cost to the city to host the first ever Employee Health Fair. A benefits management software is being implemented at no cost to the city that would have cost $30,000 and over 300,000 payroll discrepancies have been corrected. One of the most critical responsibilities within this division is managing the Health Insurance Trust Fund. Health insurance is one of the fastest growing costs facing municipalities today. By partnering with a pharmacy benefit consultant, the division was able to make changes projected to save the city $2.6 million over the next three years.

The city’s total general fund budget for FY26 is about $181 million. The Treasurer’s Office operates on a budget of $751,000, representing 0.41% of the total city budget. About 75% of the Treasurer’s budget goes to personnel and the remaining 25% covers operational expenses. The operating expense budget is $192,000. Postage alone (which supports every department in the city) accounts for about 60% of the operating expense budget and it continues to rise. Tax title foreclosure is the next largest operating expense at 26%. After both of these expenses only 14% of the operating budget supports everything else the office does. The office is operating lean and has been for years. They lost a position on FY21 and haven’t recovered staffing levels while the workload has increased.

The final division is Parking which is the most resource-constraint area of the office with only one dedicated employee. This employee handles parking enforcement, meter maintenance, garage upkeep, vehicle maintenance, and daily mail operations for City Hall. The Parking division generates between $140,000 to $160,000 annually. In FY26, $120,000 of expenses was offset by Parking. The Treasurer’s Office is looking to modernize the outdated division with mobile payment systems, updating parking rates and fee structures, and restructuring ordinances.

After the presentation, the Finance Committee asked its questions. Councilor Walsh began by asking about the outstanding tax liens and what the plan was to collect the remainder. The Treasurer responded that the collection process is very heavily reliant on the Land Court process which does not move quickly.

Councilor Walsh then asked what the process was for someone who was delinquent on their taxes. The process involves receiving a bill, followed by a demand notice that gives you 14 days to pay, and finally ending with a lien. The office provides guidance, information, and payment plans for those behind to allow flexibility in catching up on your tax bill.

Councilor Walsh then asked what the Wellness Credits were. These are provided by the dental insurance BlueCross BlueShield and is an extra incentive to promote wellness among the employees.

Councilor Walsh followed up with how much in percentage increase for health insurance costs would the city be looking at. The Treasurer’s Office said there would be a 7.5% increase.

Councilor Beauchemin had a question about the 17 properties that the Treasurer’s Office would have an auction on. After November 2024, the law changed to where it needs to be done through a realtor and sold. The office has to hold the excess equity for the property owner to come and collect. The parcels that are up for auction don’t fall under the new tax laws though.

His next question was about the personal property bills and whether the Assessor’s Office did that particular work. The Treasurer’s Office has a deputy collector who handles mailing out the bills. The Treasurer does work closely with the Assessor’s Office as that office provides the values and dollar figures.

Councilor Beauchemin’s third question was about the parking division and its responsibilities. He was surprised to learn that the parking employee also does cleanups at the garage such as drug paraphernalia.

Councilor Fleming was next and was curious why the Treasurer chose to read a statement rather than talk about the budget. The Treasurer had the numbers before her and could discuss specifics if needed. Her choice in reading the statement was to expose what the office really does and justify staffing because 75% is personnel which doesn’t leave much to cut. Fleming asked what the maximum staffing the office ever had and when. It was formally 10 people until two positions were cut in 2021.

Councilor Beauchemin returned with another question about the cut parking positions since it was losing money and in the red. Would the office plan on raising rates? Rates are being planned to be raised but due to the office’s staffing it’s not a top priority since there’s other work that needs to be done first. Parking tends to be on the back burner. Beauchemin then asked if it’s been considered to sell the parking garage or outsource the work. It’s something that could be explored in the future.

Beauchemin’s next question was if the parking meter situation was still in the red or if it was improving. The Treasurer said it’s still in the red and that not enough revenue is being collected to meet expenditures. Because of this, the parking budget has been significantly reduced. The Treasurer is working with the City Solicitor on updating parking ordinances and to have a fee structure in place. Right now, things are being fine-tuned before being presented before the City Council.

Councilor Beauchemin “couldn’t understand why the city would wait so long to invest money to do something right so we could have money so we can make repairs.” He emphasized that the upcoming city budget is going to be a tight budget with surprises. The Treasurer’s Office doesn’t have the time, resources, and staffing to take care of parking like it should or to make repairs. It’s either pay for the expenses to run it through the general fund or offset through revenues collected through parking.

Council President Zarrella asked what the Council could do to move the updated fee structure forward. The Treasurer asked for the Council to review the structure and her notes while acknowledging her background isn’t in parking and would need more expertise elsewhere.

Councilor Walsh returned to the floor, asking about the timeline of the updated parking fee structure. Three different companies have already been vetted but the office is trying to figure out the best way of procuring this parking resource. There is one company that has been picked out but it’s a matter of coming up with a contract to move forward.

Committee Chair and Councilor Cruz had a few notes about the staffing challenges facing the office and whether or not some of the responsibilities could be shifted around to different offices to alleviate the issue. The Treasurer reaffirmed that it’s all down to staffing and administrative tasks that need to be done. Could the office close the office to the public to accomplish tasks? The Treasurer was open to the idea and didn’t think it would help with the volume of work.

Councilor Fleming followed suit with another parking question, asking if the decrease in funds could be connected with everything going on on Main Street which the Treasurer absolutely agreed with. Construction crews are using the garages more than street parking but enforcement is an issue since it’s only one employee spread thin with also dealing with maintenance. Fleming doesn’t think the office needs another parking person at this time.

Councilor Beauchemin had an idea of cutting costs by maybe outsourcing payroll. The Treasurer replied that outsourcing payroll doesn’t outsource the heavy load of payroll. The office would still have to supply the data.

Council President Zarrella spoke again asking whether any consideration has been given to try identifying specific areas where parking enforcement is more needed than others to save time and costs. The Treasurer already implements a strategy like this but it’s a matter of finding time. Cleanliness in the garage is one of the major complaints the office receives. A parking study is being done to use in the future which looks at the habits of the past versus the present. The city received a grant in the form of a consultant for the parking study.

Councilor Beauchemin noted that parking studies have been done and nothing was implemented. Previous ones were done to look at the former theater block area. Council President Zarrella clarified that the prior full parking study that was done was not strategy-oriented but capacity-oriented. There weren’t action items in the previous study which the current study being done will have.