Mayor Robert Sullivan and CFO Troy Clarkson asked the Finance Committee on Dec. 1 to transfer $1,609,443 from certified free cash to eliminate deficits that arose while the Brockton Redevelopment Authority managed certain federal programs.

Officials said the deficit arose because the BRA spent outside prescribed parameters and some costs were not reimbursable by federal programs (CDBG, HOME, others). Juan (city finance staff) explained the deficiency is made up of three programs (CDBG, HOME, and another program) and that the initial figure was larger before negotiations with HUD and adjustments by prior staff. The mayor said HUD supports the decision to bring the programs back into city control and that external auditors and consultants are reviewing operations and writing new policies and procedures.

Councilors asked for more detail on the composition of the deficit and whether any judgments against the BRA might become city liabilities; staff said a judgment exists against the BRA specifically, not the city, and legal counsel is involved. The committee recommended the appropriation favorably and asked for follow-up materials, including a breakdown of the items that make up the deficit.