5-Member
Panel Composed of Local Business, Academic and Policy Professionals;
Outside Experts Will Recommend Revenue and Savings Measures in Response
to Decline in Regional Economy and State Aid Cuts

SOMERVILLE –
Mayor Joseph A. Curtatone announced today that he has convened a
special Financial Advisory Committee (FAC) to provide expert advice on
both cost-saving and revenue-producing measures designed to help the
City maintain its financial strength in the face of a deepening
economic recession and impending mid-year cuts in state aid to
Somerville and other cities and towns. The new committee, which will
convene later this week, includes Samuel Tyler, President of the Boston
Municipal Research Bureau; Jonathan G. Sloane, President and Co-CEO of
Century Bancorp; Geoffrey Hargadon, Sr.Vice President for Investments,
UBS Financial Services; Ronald Bonney, Jr., President of Bonney
Automotive and Executive Committee Member of the Somerville Chamber of
Commerce; and Professor Daniel Richards of the Tufts University
Economics Department.

"We began preparing an internal review of
cost-saving and revenue options back in late October, but the new round
of anticipated cuts in local aid means that we have to find a way to
close an additional $3 million gap in the current fiscal year," Mayor
Curtatone said. "Somerville may be in better fiscal shape than many
other cities and towns in Massachusetts, but we're still faced with
some painful choices – and we don't expect much if any improvement in
2010. We could complete this process internally, but why shouldn't we
draw on the wisdom and expertise that's available all around us? We've
never been shy about turning to outside experts for advice about
municipal best practices, and I welcome the fresh perspective this
distinguished outside group will bring."

Curtatone explained
that the FAC would have the opportunity to make cost savings, cost
recovery and financial management recommendations in all areas of city
government, and would address both operating costs and capital
spending. "All options are on the table, but my charge to this new
committee is to help us avoid service cuts and layoffs if at all
possible," Curtatone said.

"In the end, this new advisory group
can't make the tough decisions for us, but they can offer helpful
guidance, and I am pleased that the Mayor is establishing this special
committee," said Ward 2 Alderman Maryann Heuston, who chairs the
Board's Finance Committee. "I also think that having an outside group
involved adds an extra measure of transparency to what is going to be a
challenging process – and that's important if the public is going to
have confidence in the final plan that the Mayor and the Aldermen
develop."

"Even as he proposes cuts in local aid, Governor
Patrick has been careful to argue that cities and towns should be given
more management tools to control costs and develop a more balanced
revenue base," said Curtatone. "But even if we gain the option of a
modest increase in meals or hotel taxes, and even if the legislature is
finally able to close the obsolete and pointless Telecommunications Tax
loophole, we won't see any new revenue from these changes until next
year. We need to act now to make up for these cuts – and we will."

"Somerville
is a regional leader in adopting municipal best practices to improve
service efficiency," said Samuel Tyler. "However, the size of the state
aid cuts this year and next will require creative but hard choices and
I am happy to join the Advisory Committee members in bringing outside
thinking to address this challenge."

Curtatone said the group
would be convened as quickly as possibly and would report back with
recommendations by mid-March at the latest. "We'd be happy to act even
faster on interim recommendations that the committee may choose to make
before their final report," said Curtatone. "I'm sorry to impose such a
tight timetable, but we really don't have a choice. We have to begin
closing the local aid gap well before the end of the current fiscal
year on June 30th.

"In the meantime, I will also begin talking
directly to our union leaders across city government," said Curtatone.
"We want to partner with organized labor on developing realistic
approaches to keeping cost under control while maintaining core
services. I anticipate their willing cooperation."