HOLYOKE — Mayor Joshua Garcia recently briefed the city in a press conference held in his office to address what headlines in the past week have called, “Holyoke’s money mess.”
“I’ve heard fears about insolvency, and I want to reassure everybody, members of our public, that Holyoke is not running out of money,” said Garcia, who reassured the city there will be no hiccups to city services while state funding to the city is frozen.
At the beginning of the month, the state’s Division of Local Services froze funding to the Paper City due to failure to submit financial reports for three consecutive years. The city is still finalizing an audit from fiscal year 2023.
“While we have faced challenges in the past, including temporary suspensions to local aid, our dedicated city treasurer has worked diligently to build a strong cash reserve,” said the mayor. “This reserve ensures that the city can continue to meet all of its financial obligations, including payroll, including vendor payments, without any interruptions, nor will there be any any interruptions to city services.”
This means the trash will continue to be picked up, schools will remain open, police will continue to respond to emergencies and city employees will still get paid, said Garcia.
To prevent situations in the future, he called on the City Council to pass his Municipal Modernization Act, which is currently before the council but was shot down in an 8-5 vote earlier this year. The act calls for hiring a chief financial officer and streamlining jobs by combining some and eliminating others.
Garcia also took the moment during the press conference on Oct. 29 to clarify that according to both state and local auditors there are no missing funds or instances of fraud or abuse. He said state restrictions are beginning to be lifted. The city has until December to comply or the state will hire outside help to file all necessary records.