HOLYOKE — Mayor Joshua A. Garcia says the city’s financial fundamentals are strong. In his budget proposal for the fiscal year starting July 1, he proposes to take action on this basis.
“On every important metric, the City of Holyoke is firmly and categorically moving in the right direction,” Garcia said during a special City Council meeting last week.
“Our local economy continues to grow. Our schools are returning to local hands. Our budget is in the black for the third year in a row.”
Notable budget elements include reducing city debt, increasing staff salaries and adding a finance role.
The proposed city budget would be $76.15 million. The proposed school budget is $96.14 million. Combined, the total amount is $172.32 million.
Congress has scheduled budget hearings for May 16, 28, and 29. The council can make cuts from the mayor’s budget, but cannot add to it.
Garcia told officials he expects local revenue to increase modestly. He said the city will have a clearer picture of revenue growth toward the end of the fiscal year on June 30. The 2025 budget proposal will be adjusted by then.
Notable budget changes in the mayor’s plan include a $325,065 reduction in city debt.
The city will provide pay raises and a 2% cost-of-living adjustment under union-negotiated contracts, as well as increases for non-union employees and a 13% increase in health insurance, school transportation, leases and local contributions to the school sector. .
The mayor’s budget proposes new positions, including chief financial and administrative officer in the mayor’s office, with a projected annual salary of $150,000.
Also being sought are a professional accountant and crime analyst at the Holyoke Police Department, a part-time chief clerk at the Department of Conservation, and two tree climbers at the Forest Service.
Garcia said certification of the free cash by the state Department of Revenue is pending. If the account is certified, he will recommend strategic investments to the City Council and aim to allocate funds for capital improvements, reserve accounts and one-time expenditures.
Garcia said Thursday that the budget does not rely on the American Rescue Plan Act’s revenue replacement, does not propose repealing Proposition 2 1/2 or cut services, and has a small surplus. told members of Congress.
He said the surplus would increase due to state-certified valuations of real and personal property, and further adjustments would follow.
Garcia said the city’s potential for new growth could exceed expectations and provide more fiscal flexibility.
Considering the latest Senate budget numbers, state revenue projections, and the House’s original budget, Garcia said he expects another year of school aid increases, which would include local funding for public schools under the Student Opportunity Act. He said it would affect the burden.
Garcia said the city has made progress in managing its finances over the past year.
“The budget is balanced. City services are being delivered. City health is strong,” he said.
Garcia said the next budget proposes strengthening the city’s fiscal health by establishing the role of chief financial management officer. The move is in line with advice from the state Department of Local Services and aims to strengthen financial control of all city departments. He encouraged the City Council to consider a ballot question to create a treasurer position to be appointed by the City Council itself.
Beyond the budget, Garcia said there are signs of investment in Holyoke.
New industries such as Sublime Systems and Clean Crop Technologies are expanding to Holyoke. Both companies were named to Time Magazine’s list of America’s “Top Green Tech Companies.”
“There’s a lot more to come. We’re showing that the future of America’s economy is happening now in Holyoke,” he said.
Garcia said the new housing is another sign of Holyoke’s growing strength. Garcia said the community is seeing significant investment, with more than 100 new housing units developed and 100 more planned to be developed in the coming years.
The city has also made significant investments in school buildings. Students will soon be welcomed into their new middle school, which Garcia said sends a clear message that Holyoke School District students are part of the community and their success is the community’s success. Told.
Garcia said Holyoke is celebrated every day by residents who strive to do the right thing and take responsibility for making their community stronger and more vibrant for generations to come.
“Hoyokers don’t quit. Hoyokers keep pushing,” he said.
Garcia also praised the City Council and staff for being the “guardians of local democracy” and for their hard and often overlooked work.
