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from certified free cash and unexpected bond proceeds into operating, capital and prior-year deficit accounts, and rescinded more than $21 million in unissued borrowing authority dating back as far as 1998.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 "We just rescinded 28 years worth of authorized unissued debt," she said, adding that the practice is standard housekeeping and helps rating-agency assessments.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 medical claims ($45,000); and a prior-year FEMA deficit of $505,538. The auditor also listed numerous smaller prior-year deficits dating from 2014–2023 and a tentative allocation of $100,000 “for Haverhill’s 250th celebration.” Perkins said the total figure spoken during the presentation was $1,148,941.86; the order initiating the transfer appeared on the agenda as $1,000,149.41.

- FEMA/CARES explanation: Perkins told the council that during CARES Act administration some charges were later ruled ineligible by FEMA, and the Department of Revenue (DOR) gives municipalities three fiscal years to fund such reclassifications before deducting them from free cash. The administration's plan presented to the council was to fund one-third of the FEMA amount each fiscal year for three years.

- Unexpected bond proceeds reallocations: The council approved reallocation of $500,000 in unexpected bond proceeds as follows: $150,000 to repair and outfit the former Social Security building for school use (the superintendent had toured the property); $175,000 for underground oil tank removals; $100,000 for Nettle School elevator repairs; and $75,000 for Americans with Disabilities Act upgrades at Haverhill High.

- Smaller bond reallocations: The council also approved $55,867.95 in reallocations (Moody School roof feasibility and Hunking Middle School lighting repairs). City staff and the mayor explained the Hunking work will remove an unsupported computerized lighting control system and replace it with a conventional dimmer/switch approach after a pilot.

- Rescission of unissued borrowing: Perkins moved—and the council approved—rescinding numerous unissued borrowing authorizations stretching back roughly 28 years. Perkins said the total rescinded exceeded $21 million and called the action "good housekeeping," noting it removes perceived unused borrowing capacity that can affect debt ratios and ratings.

Votes at a glance (all roll-call outcomes: 10 yeas, 0 nays, 1 absent)

- Accept gift: $250 from Lowell 5 Savings Bank for the Council on Aging Saint Patrick’s Day event — outcome: approved.

- Accept gift: $100 from Stella and Mike Papuzzi for Northern Essex elderly transport program — outcome: approved.

- Accept revenue and expense reports for January 2025 — outcome: approved.

- Order: Transfer from fiscal 2024 certified free cash to various 2025 appropriations and prior-year deficits (agenda item 13.1). Motion: moved by Councilor Mitchison; second by Councilor LePage — outcome: approved. (See clarifying details for line-item list.)

- Order: Reallocate $500,000 from unexpected bond proceeds for Social Security building repairs/outfitting, underground oil tank removal, Nettle School elevator repairs and ADA upgrades at Haverhill High — outcome: approved.

- Order: Reallocate $55,867.95 from unexpected bond proceeds to complete Moody School roof feasibility and repair Hunking Middle School lighting — outcome: approved.

- Order: Rescind multiple unissued borrowing authorizations (loan orders dating back to 1998 through 2020) totaling over $21 million in authorized-but-unissued amounts — outcome: approved.

What the council asked for and next steps

Vice President Jordan and other councilors pressed for detail on the large FEMA charge and asked whether earlier CARES Act spending had sufficient outside oversight; Perkins said the CARES-era work had been handled in-house and that ARPA-era spending has used outside consultants to ensure compliance. Several councilors asked for clarity on how the 250th-celebration funds would be used; the mayor said the $100,000 is a reservation to guarantee event dates and will be held in a separate account until specific contracts or expenditures are authorized.

Clarifying details

- FEMA ineligible amount (as spoken in meeting): $1,500,000 was described as ineligible charges; repayment amount listed by Perkins: $505,538 (to be funded one-third per year over three years).

- Free-cash transfer totals: the auditor read a list of line items and spoke a terminal figure of $1,148,941.86; the order on the agenda referenced $1,000,149.41. The transcript does not reconcile those two figures; the article reports both and marks the discrepancy as "not specified" in the clarifying details.

- Haverhill 250th celebration funding: $100,000 appropriated to a separate account for future event costs (no vendor contracts executed at this meeting).

Proper names

[{"name":"Haverhill City","type":"agency"},{"name":"Angel A. Perkins","type":"person"},{"name":"Vice President Jordan","type":"person"},{"name":"Councilor Mitchison","type":"person"},{"name":"Councilor LePage","type":"person"},{"name":"Mayor Barrett","type":"person"},{"name":"Steve Durrance","type":"person"},{"name":"Department of Revenue","type":"other"},{"name":"FEMA","type":"other"},{"name":"CARES Act","type":"other"},{"name":"ARPA","type":"other"}]

Community relevance

Geographies: Haverhill (citywide). Funding sources: certified free cash, unexpected bond proceeds, general obligation municipal loan proceeds. Impact groups: taxpayers (debt profile impacts), city departments (capital and operating funding), school department (facility funding and fit-out of Social Security building).

Meeting context

Engagement level: multiple councilors asked questions; the fiscal package generated extended explanation by the city auditor; duration: the fiscal package occupied a significant portion of the meeting (roughly the middle third of the recorded session). Implementation risk: medium — some items (prior-year funding, bond reallocations) are administrative and local; the FEMA repayment and long-term debt profile affect future budgets and credit ratings.

Searchable tags

["free cash","bond reallocation","FEMA","CARES","ARPA","budget","capital projects","Haverhill 250"]