SOUTH HADLEY — The credit rating agency Moody’s Investors Service has announced that it has put South Hadley Fire District No. 1 “on review” after receiving insufficient financial information from the district.
In a statement Wednesday, the rating agency said that South Hadley Fire District No. 1 is one of 11 local government debt issuers across the country to be placed on review. The other places under review include several counties, cities and public agencies in Kentucky, Oklahoma and Indiana, as well as the town of Ashburnham, Massachusetts.
“The review is prompted by the lack of sufficient, current financial information,” Moody’s said. “If the information is not received over the next 30 days, we will take appropriate rating action which could include the withdrawal of the issuers’ ratings.”
In an email Friday, South Hadley Fire District No. 1 Clerk-Treasurer Terie Fleury said that “the information is expected soon and will be reported to the proper agencies.”
Fleury did not respond to questions asking what information was missing, why it was missing and whether the issue would affect the district’s bond rating.
A Moody’s spokesperson did not return a phone call requesting more information about the review.
The announcement comes after a tense meeting last month of the fire district’s Prudential Committee — the elected body in charge of that district’s finances — after some members of the public leveled accusations of financial mismanagement against Fleury and district leadership.
The elected Prudential Committee held a special meeting on June 15 in order to correct three mistakes made by district leadership: paying off a previously unpaid unemployment claim; sending additional money to the Hampshire County Retirement System, which the district owed due to a incorrect estimate by Fleury; and paying Fleury for an unexpected 53rd pay period last fiscal year.
Some members of the public at the meeting accused Fleury of incompetence, though others, including some fire fighters, said she was being unduly criticized for an error and unforeseen circumstances.
South Hadley is one of a few municipalities in the state where the fire department is not under the control of the town’s regular executive and legislature. The town’s two fire districts have their own elected officials who manage the budgets for water and fire services.
Dusty Christensen can be reached at dchristensen@gazettenet.com.