LYNN – Mayor Judith Flanagan Kennedy could have taken a bow Tuesday night. Instead, she simply smiled and said, “I’m thrilled” when the City Council voted unanimously to approve her $239 million municipal budget.Kennedy managed to craft a balanced budget despite a $3.8 million shortfall and a Supreme Judicial Court ruling that ordered the city to immediately pay the Lynn Police Association $383,000 in back wages stemming from budgetary problems that arose under the former mayor.She credited Chief Financial Officer Richard Fortucci and Comptroller John Pace for their fiscal prowess and reported proudly that every city department cut its expenses an average 4 percent.”There will be no layoffs or furloughs on the city side,” she said.Under questioning by Councilor-at-large Daniel Cahill, the mayor explained that the $383,000 judgment for the police would be paid in fiscal 2010 as required by the court, but the money will not be drawn from the $650,000 currently in the city’s overlay or reserve account. Cahill insisted the mayor pay the bill from that account. Kennedy said that would limit the city’s options since the amount of state aid for the year remains unknown. Besides, spending down the reserve account could potentially lower the city’s bond rating, making borrowing more expensive, she said.The state Department of Revenue already has agreed to allow the city to account for the money in its 2011 budget. Cahill’s motion to pay the bill immediately was defeated 10-1, as was his attempt to eliminate a $31,000 Parking Department job related to overseeing a city-owned abandoned car lot.The School Department budget, separate from the municipal ledger, was still unbalanced last week, according to Superintendent Catherine Latham, who will present it to the School Committee. Kennedy, too, planned to scrutinize the school document, hoping to find items that can be cut in order to spare layoffs of teachers and school personnel.Seventy teachers, classroom aides and other School Department employees were sent letters last week, notifying them of potential layoffs.
