Haverhill council approves transfers totaling roughly $1.15 million, bond reallocations and rescissions

The Haverhill City Council on Monday approved a set of financial orders that move roughly $1.15 million from certified free cash and unexpected bond proceeds into operating, capital and prior-year deficit accounts, and rescinded more than $21 million in unissued borrowing authority dating back as far as 1998.

City auditor and chief financial officer Angel A. Perkins presented the transfer and explained the largest single item: a prior-year FEMA reimbursement denial. "So during the CARES Act, there was an opportunity to submit eligible expenses to FEMA for reimbursement, but the keyword was eligible," Perkins said, describing $1,500,000 in charges FEMA later deemed ineligible and a plan to fund the $505,538 repayment in three equal annual installments.

The council approved the measures by unanimous roll call votes (10 yeas, 0 nays, 1 absent). The votes included accepting two small gifts, certifying January revenue and expense reports, transferring free cash to cover operating items and prior-year deficits, appropriating unexpected bond proceeds to several school and facility repairs, and a large rescission of unissued borrowing authorizations.

Why it matters: Perkins said cleaning up long-standing unissued debt and prior-year deficits will remove recurring deductions from certified free cash and improve the city's credit profile. "We just rescinded 28 years worth of authorized unissued debt," she said, adding that the practice is standard housekeeping and helps rating-agency assessments.

Key details and council discussion

- Free-cash transfers: The council approved an order described on the agenda as a transfer from fiscal 2024 certified free cash to multiple fiscal 2025 appropriations and to fund prior-year special revenue and capital deficits. Perkins listed line items including: IT salary and wages ($50,000); auditing and additional services ($65,000); legal consulting ($150,000); retiree…