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Date: 2/21/2023
EASTHAMPTON — At its Feb. 15 meeting, the Easthampton City Council approved moving $3 million from the town’s free cash to stabilization funds. The move puts the city in a better place if its financial situation should become more challenged.
Councilor Daniel Rist, chair of the Finance Committee, noted that the current amount in the stabilization funds, nearly $10 million, is the largest amount that he can recall the city ever having.
“[The] use of pandemic funds created a large amount of unexpended funds,” explained Rist, adding that because the pandemic relief funds took care of expenses, the city ended up with leftover money. “This will not happen again.”
Due to this rare opportunity, the City Council wanted to make sure that they moved the money to the stabilization accounts where it could roll over year after year and secure the city’s future if another recession should happen.
“This will protect us from massive layoffs like we had in the last recession,” added Rist.
In addition, having such a large nest egg will help the city when it needs to fund larger projects.
“Bonding companies give us a good rating and when we do that we save a tremendous amount,” explained Rist.
Of the $3 million moving to the stabilization funds, $1.5 million will go to the capital stabilization fund for long-term capital projects like new vehicles for the city’s emergency responders or public works department. Another $1.2 million will move to the general stabilization fund and the remaining $300,000 will go to the tax rate stabilization fund.
Other Financial News
The City Council also voted to move several other free cash transfers to the finance committee for its consideration.
Roughly $475,000 will be considered for the Department of Public Works for items like water meters, sewer repair, two new trucks, fuel, and a building custodian for the council on aging and city hall.
The Police Department has requested almost $74,000 for items including equipment, training and uniforms for new recruits and a medical bill from 2021 for an officer who was injured.
The Finance Committee will also discuss a Fire Department request for $194,000 to fund the EMS billing service, ambulance supplies, repairs to vehicles and bulletproof vests. The council noted that the Fire Department has seen a significant issue in the cost of its supplies.