Holyoke council rejects sewer levy subsidy, splits on $1.11M stabilization transfer

Holyoke City Council on Monday unanimously denied an order that would have subsidized a projected $927,778 shortfall in the city’s sewer enterprise budget from the property tax levy, then split 8-5 on a separate motion to transfer $1,114,335 from the general stabilization account to the capital stabilization account to cover the deficit and fund capital items.

The council first voted to uphold a Finance Committee recommendation to deny the order to subsidize the sewer enterprise from the levy rather than using reserves. Councilor Devine reported the committee vote was 4–1 to deny the order; the full council then recorded unanimous support to deny the order.

The discussion then moved to a separate proposal filed by Councilor Devine to transfer $1,114,335 of earned interest from the general stabilization account into capital stabilization. The mayor argued the transfer would “cure the deficit” and also leave a small amount for capital needs, saying the approach “not only cures [the] deficit, but also gives us a little bit in our capital to invest in ourselves.” The mayor added he would not use ARPA funding for this purpose: “That is not…