Mayor mulls uses for free cash

Date: 12/8/2010

Dec. 8, 2010

By Katelyn Gendron

Assistant Editor

WESTFIELD -- Mayor Daniel Knapik and city ccouncilors are considering how best to spend the $3.7 million in free cash certified by the Massachusetts Department of Revenue (DOR) on Nov. 30.

The figure, which is the total surplus in the city's budget after settling debts, is up $1.5 million from last year. Ward 1 City Councilor Christopher Keefe, member of the council's Finance Committee, noted the funds could be used for one-time expenditures such as a new roof and HVAC system for the Police Department, a new vehicle for the Fire Department or repaving projects.

"I am very pleased with [the] numbers that the DOR released today for Westfield," Knapik said last week. "We will continue year after year to manage the city's budget as we do with our own household budgets, conservatively and with prudence while continually working for new, smart growth."

The mayor attributed the increase in free cash to sound fiscal management by the City Council and the finance team, composed of Assessor Jim Pettengill, Auditor Debbie Strycharz, Collector Mike McMahon and Treasurer Greg Kalfa.

Knapik and Keefe said they'd like to see a large portion of the free cash put into the city's stabilization account, currently totaling $4 million. The city had only $250,000 in the account in 2003 and lacked free cash and excess levy capacity, Keefe noted.

"We've built it up to where the state expects it to be, 5 percent of the operating budget," Keefe said, noting that they city has a reserve debt decline of $2 million.

"This is great news for the city of Westfield, it takes a lot of belt tightening and management in these tough times, but with strong leadership and management in place, we have a surplus this year," Ward 5 City Councilor Richard Onofrey Jr., chair of the council's Finance Committee, said.

City Council President Brian Sullivan echoed Onofrey's sentiments. "One of the factors of free cash is the unanticipated new growth in the city, which is a positive sign for businesses and residents of the city as we move forward in this tough economy."