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The City of Chicopee has received confirmation of Free Cash Certification as of July 1, 2015 in the amount of $6,302,566.
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 $177,934,120.02 for Fiscal year 2016.
“It is a positive indication of the financial health of our City,” said Mayor Kos. “I look forward to working 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. “We know it will be available for snow removal funding as the year progresses as well.”
Council President George Moreau confirmed, “The City Council continues to work with Mayor Kos to look at the City’s needs and how we can best address them with this money.”