The City of Chicopee has received confirmation of free cash certification as of July 1, 2016 in the amount of $7,332,258.
Free Cash is a revenue source that results from the calculation, as of July 1, of a City’s remaining, unrestricted funds from the operations of the previous fiscal year, based on the balance sheet as of June 30. It can include actual receipts in excess of revenue estimates and unspent amounts in department budget line items for the year just ending, plus unexpended Free Cash from the previous year. Free Cash plays a role in sustaining a strong credit rating, and the Department of Revenue encourages that cities strive to generate Free Cash in the amount equal to 3% to 5% of its annual budget. It is a non-recurring revenue source and as such the DOR recommends that the prudent use of Free Cash would be to fund one-time expenditures, capital purposes, or to replenish other reserves or accounts. Chicopee’s annual budget is $183,425,195.82 for Fiscal year 2017.
“Given our needs, I could easily commit $9 million of this $7.3 million balance,” said Mayor Kos. “I will work with the City Council and department heads to determine an appropriate allocation of these funds which address our current budgetary needs, capital needs, and consideration of the financial pressure on our taxpayers,” Mayor Kos added. “Snow removal funding, City Hall repairs, vehicle replacement, and tax relief are just some of the possibilities. I thank our City’s financial team (Treasurer Laflamme, Auditor Riley, Collector Iwanicki, and Assessors Suchy, McCarthy, and Anop) for their efforts and cooperation in addressing the City’s financial needs.”
Council President John Vieau echoed the Mayor saying, “We are proud to work together as a Council with the Mayor to determine how these funds could best assist the City and our taxpayers. As always, this will be a cooperative effort.”