Mayor Joshua Garcia talks about the changes that Holyoke is making to its Finance Department after an ordinance approval from the Holyoke City Council.
Reminder Publishing photo by Tyler Garnet
HOLYOKE — Following the recent approval by the City Council to improve the city’s Finance Department, Mayor Joshua Garcia and others hosted a press conference on Feb. 9 to talk about the newly improved department and the city’s current fiscal standing.
Following months of discussions, the City Council approved provisions to the city’s Municipal Finance Modernization Act during its Feb. 3 meeting with an 11-2 vote in favor of the changes.
Garcia talked about the “historic” moment for the city and the steps that are underway to achieve “good governance.”
“This landmark legislation represents a major step forward on how we handle our city finances,” Garcia stated. “The act specifically modernizes our financial operations by centralizing key functions under a new department of finance.”
At the top of the Finance Department will be the mayor, just like any other department in the city. Underneath the mayor in the organization chart is the chief administrative and financial officer, a role that the state has urged Holyoke to create for nearly 20 years, according to Garcia.
The CAFO position has officially been posted, according to Garcia, who said the position is for “any person looking for a challenge and new opportunity.”
The act will also consolidate the treasurer and collector position to one, and introduce a comptroller and financial analysts to the department.
Rory Casey has been appointed by Garcia as the city’s interim treasurer until a new one is appointed.
The city is also looking to fill its auditor position. Casey explained that before the comptroller and other positions can be posted, “Certain things have to fall into place.”
He said a major domino fell into place when the treasurer role changed from an elected position to an appointed position. “That happened about a year ago; the act passed last week, so now we can start putting all those other things into action,” Casey stated. “There will be positions that are going to be open, there are positions that don’t currently exist where we have to talk to some collective bargaining units in order to make sure everyone is on the same page.”
Garcia said that although the public does not have direct involvement in the appointment of the new CAFO, he said he will host open public interviews.
City Councilor and Ordinance Committee Chair Meg Magrath-Smith said there is a structure in the ordinance itself that outlines the hiring process for the CAFO and includes the creation of a committee made up of city employees to discuss candidates. The mayor and City Council will eventually determine recommendations for interviews.
The residency requirement ordinance has been dropped for all the city’s financial officer positions. Magrath-Smith explained, “We wanted to make sure that we are widening the pool as much as possible so that we can get the highest, qualified candidates.”
Garcia also said the new act will also consolidate scattered responsibilities, strengthen internal controls, reduce liabilities and align the city’s practices with longstanding recommendations from the state’s division of local services.
According to Garcia, the provisions are “nearly” budget neutral, saving the city approximately $100,000.
Looking ahead, Garcia said, “These changes mean better stewardship of taxpayer dollars, stronger safeguards against errors of efficiency and greater confidence from state partners and rating agencies. These changes strengthen accountability and offer better oversight balance between the executive and the legislative branches of our government, ensuring accountability of each other. Together, these efforts address issues that have challenged our city for years and will position us for long-term fiscal health even well beyond us who are elected today.”
Last year, Holyoke faced challenges with cash reconciliation due to a lack of proper financial documentation. The state halted local aid payments because Holyoke had not completed cash reconciliations from fiscal year 2023 to the current fiscal year. The delay led to concerns about the city’s financial records and the ability to certify free cash, which is crucial for setting future tax rates.
Casey, who shared his excitement for the changes in the Finance Department, also gave an update on the city’s current financial status. CliftonLarsonAllen, LLP (CLA) was recently appointed by the state to assist with cash reconciliation services.
The FY23 audit is complete, and the FY24 audit is underway. Casey said they expect the FY25 audit to wrap up before the end of the fiscal year as well.
He stated, “This is going to get us back on track, which is the most important thing, so that whoever comes and is the treasurer/collector is not left with the same mess that I inherited and the same mess that previous treasurers have also inherited.”
Casey also said they since the vote from the City Council took place, he and the finance team met internally to develop plans that will help cross-train current and future staff.
Garcia ended the press conference by officially signing the Municipal Finance Modernization Act into law.
Magrath-Smith explained that since the act is an ordinance change, the Charter and Rules Committee will discuss what charter changes need to occur to make it a reality. The ordinance will then go through the home rule petition process.
