Free cash amount surprises Chicopee city officials

Date: 12/5/2014

CHICOPEE – The city has a bit of windfall this year, but Mayor Richard Kos said so far how the money will be spent has yet to be determined.

The Kos Administration announced on Nov. 25 the city’s free cash certification as of July 1 indicated it had $7.9 million.

City Auditor Sharyn Riley explained to Reminder Publications that between $3 million to $5 million is considered “normal.”

Free cash is unrestricted funds that come about from either excesses in revenue or unspent amounts of appropriated funds.

The additional funds came $1.9 million from a duplication of appropriation of funds for health insurance, which has been stopped since its discovery as well as a “premium on the sale of bonds” for $1.4 million.

Riley said city officials couldn’t anticipate a bond sale.

“We are in good financial shape,” Riley said. “We’ve been lucky.”

Kos said that right now city officials are looking at possible uses of the funds. 

“The amount of Free Cash allows the city of Chicopee to take advantage of recommendations made by the Department of Revenue to fund one-time expenditures and capital purposes. 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,” Kos said.