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Holyoke council presses treasurer and auditor for free-cash certification as state aid remains delayed
Summary
Councilors were told the city's Schedule A has not been filed and that state local aid was being withheld; treasurer and auditor are working to resolve differences and hope to certify free cash this fall, but councilors said delays limit options to relieve taxpayer burden in the current fiscal year.
The Holyoke City Council pressed city finance officials on June 30 for a timeline to certify the city's free cash figure, which the council said has not yet been provided and has delayed the release of local aid.
Committee discussion reported that the treasurer submitted what he had but that the Schedule A remains unfiled; there are differences of opinion between the treasurer and the external auditor that are being worked through. Committee members said the state has been withholding local aid since February because Schedule A was not filed, though they were told local services may release aid even while Schedule A remains outstanding.
Councilor Bacon said the delay is “disappointing and upsetting,” noting the council had been promised free cash certification in June and that the delay removes the council’s ability to consider using free cash to reduce taxpayer burden in the current budget. Councilor Bacon said the withheld state money and lack of a certified free-cash number mean relief would be deferred to the next fiscal year.
Councilor McGrath Smith said structural finance changes are needed and that the council has been discussing options including combining positions, appointing rather than electing the treasurer, and ensuring minimum criteria for the position. Councilors complimented the treasurer for hard work but urged a timely resolution.
The Committee on Finance recorded its order as “complied with” but directed the treasurer and auditor to provide a timeline for certification and noted the city hopes to have a free-cash number by fall.
Ending Councilors requested follow-up from the treasurer and auditor; several councilors signaled support for structural reforms to the finance office while urging a near-term fix so the council can consider free-cash uses before long-term decisions take effect.
