Mayor: ‘Holyoke has not run out of money’
HOLYOKE — Holyoke's finances are under a microscope, but Mayor Joshua A. Garcia tried to reassure residents Wednesday that the city's bank account isn't running on empty.
Garcia said he wanted to speak directly to Holyokers about the city's well-documented and pressing money situation , which he did during a morning press conference.
Some people were confused by recent state updates and worried Holyoke is running out of money. That's not true, he said.
"There's been a lot of talk, and I strongly believe people should hear directly from me," Garcia said. "I want to reassure everyone: Holyoke has not run out of money."
On Oct. 1, the Massachusetts Division of Local Services froze Holyoke's local aid payments after the city failed to submit required financial reports for three consecutive years. The agency gave the city 60 days to comply, or risk having the state hire outside help and deduct the cost from future aid.
City finances are stable
The city has faced delays in state funding before, but the treasurer saved enough money to keep paying workers and running services, he said.
"Trash will still be picked up, schools will remain open, employees will be paid, and police and fire will continue responding to emergencies," Garcia said.
Auditors found no missing money or fraud, he said. The only issue was late paperwork, which the city is fixing.
Garcia said Holyoke's credit rating is still strong. That means the city can borrow money for projects. In fact, Holyoke just got a $30.1 million loan to improve schools, with the lowest interest rate in more than 10 years.
Long-term fixes needed
Garcia said the city needs long-term changes to avoid future problems. He wants the City Council to approve reforms endorsed by the state. The plan includes hiring a chief financial officer and a comptroller, combining some jobs, and cutting others.
A modified version of the plan was voted down 8-5 earlier this month.
"The number one priority is adopting the Municipal Modernization Act," Garcia said. "Otherwise, we'll find ourselves in a similar position in the future."
At the press conference, Garcia also announced a plan to buffer residents against the social woes caused by the shutdown of the federal government.
Garcia is up for reelection on Tuesday, unopposed.
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