HOLYOKE — In a June 27 special meeting of the City Council that served as the council’s last meeting before a summer recess, the council approved just over $1 million in transfers from free cash as final bookkeeping to end the fiscal year.
Holyoke Mayor Joshua Garcia explained he brought forward the transfer orders to complete financial business for fiscal year 2024 as the new fiscal year was set to begin with the start of July. Garcia noted to the council that the city produced a positive free cash balance of $1,098,942 and retained earnings of the city’s sewer enterprise Fund of $96,708 as of July 1, 2023.
For the city to have access to free cash and retained earnings, Garcia explained they must transfer funds out of free cash and retained earnings before the new fiscal year. Any funds not transferred out of free cash and retained earnings before July 1 will not be accessible until the next free cash certification period.
Due to this, Garcia brought forward several free cash transfers for one-time related investments as described in the city’s financial management policies manual.
The largest free cash transfer was for $427,347 to the opioid revenue account.
“Just so you’re aware, before any revenue accounts were created to receive that funding when the opioid settlement took place, that fell in the general fund, now converted into free cash so we’re just looking to put that in the appropriate account, as expected by the settlement agreement,” Garcia explained. “Similar to what we did when marijuana funds were caught in this free cash cloud earlier on and we moved it to the appropriate account.”
The next largest transfer was for $246,775 to capital stabilization. These funds transferred into this account will give the city more time to work together in identifying what capital investments they want to make. Garcia explained this addition will bring its total closer to a million dollars and that the council will be able to discuss future capital related investments with these funds later in the year.
Another transfer passed was $100,000 for Mayor’s Contracted Services line. These are one-time non-capital related transfers that will include investments on contracting with an outside consultant to work with the Police Chief Search Committee, contracting with Collins Center for development of a PILOT policy/program and for ongoing historical preservation work via OPED and the Historical Commission.
“It gives us a little flexibility to continue some work that we’ve all been kind of talking about,” Garcia explained. “Access to some funding to get some of that work moving forward.”
Other transfers included $299,820 for a police cruiser, $5,000 to OPEB and $20,000 to general stabilization.
The full discussion and votes on transfers can be viewed through Holyoke Media’s recording of the June 27 City Council Special Meeting.
