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Bissonnette: Chicopee in ‘best financial shape of city’s history’

Date: 10/4/2013

By G. Michael Dobbs

news@thereminder.com

CHICOPEE – His opponents might see his announcement of the status of the stabilization funds to be somewhat political about a month before voters go to polls, but Mayor Michael Bissonnette gave credit to city officials and the City Council for putting Chicopee into its present condition: “the best financial shape of the city’s history.”

Bissonnette announced on Sept. 30 that $2.2 million would be added to the stabilization or “rainy day” account.

Assessor Laura McCarthy explained the monies came from an overlay account that was reserved to pay for potential settlements in lawsuits involving telecommunication companies and their tax responsibilities to cities and towns. Since a number of those issues have been settled, the funds could be transferred elsewhere.

The result is a stabilization account with about $12.48 million. Bissonnette said that since he came into office in 2002 $32.5 million has been added to the account. Those funds have been used to purchase capital equipment, lower the tax levy and balance the budget to prevent changes of service and layoffs of city employees.

He said he could “safely predict” there would be no property tax increase this year.

The city also now has the highest bond rating in its history from Moody’s and Standard & Poor’s. Bissonnette said that city had been in its “highest bonded indebtedness” nearly $200 million, but now that amount has been lowered to under $50 million.

He noted the accomplishments in the city’s finances are “extraordinary when going through the worst recession in the city’s history.”

He thanked the city’s union employees for accepting contracts that were without raises , which helped keep people employed during the recession. The city will be negotiating new contract next year, he added.

What has also helped the city is the continued retail development of Memorial Drive. He said the investments at Westover Air reserve Base have helped fuel that renewed growth, but the “uncertainty at Westover is palpable” due to the sequester and other proposed changes and cuts.

Bissonnette said the city still has to face reductions in state aid and has dropped from $15 million to $9 million during his time as mayor. He expressed hope that with continued economic recovery the state would be restoring some assistance.

“No city in Massachusetts is out of the woods yet, but Chicopee is in much better condition than any other community. There isn’t a single mayor in the Commonwealth who would want to be in our position,” Bissonnette said.