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Officials defend stabilization funds and free‑cash practice as councilors press for transparency
Summary
Mayor Sherra and Finance Director Nardi argued that moving certified free cash into targeted stabilization funds (capital, climate, special education, fiscal stability) is prudent for year‑round liquidity; some councilors said early allocations limit flexibility and asked for clearer debt schedules and fund details.
City leaders defended a policy of transferring certified free cash into several stabilization accounts, saying earmarked reserves give the city year‑round liquidity and prioritize capital, climate and special education needs.
Director Nardi explained that free cash is certified by the Department of Revenue (usually in November–December) and that stabilization accounts are intended to be available throughout the year without waiting for DOR certification. "Free cash is not available all year so if you have something catastrophic happen in July or August, your free cash may not be certified," she said.
Councilors pushed back. Councilor Stratton and others questioned the practice of both putting money into and taking money out of the same stabilization fund within a single fiscal period and asked why some replenishment couldn't wait until later in the budget process. Director Nardi and the finance director responded that backfilling reserves after draws is standard and that any expenditure from a stabilization fund requires a council vote.
The business administrator for the schools, Bobby Jones, clarified rules about the education circuit breaker (special education reimbursement): the city reported a balance of about $1,176,096 and noted some reimbursements are carried forward for one year per common practice.
Ending: No policy change was made; staff said they will add more detail about the debt schedule and project lists to the published budget book and will continue to brief councilors on reserve policy and timing.
