NEWBURYPORT — Auditors for the city recently announced that the city has $1.5 million of unspent money left over from the last fiscal year, which comes as good news in an era of tight municipal budgets and threatened cuts in state funding.
The surplus, called "free cash" in municipal lingo, was identified as city officials closed out the fiscal year that ended June 30, and it must still be certified by the state. City councilors aren't planning a spending spree, but still the term "wish list" does come to mind when attempting to predict how this money will be applied.
"This money is available for appropriation," said Bill Squillace, city auditor, "and it developed as a combination of money that wasn't spent and the fact the city collected a little more than projected.
"Plans for spending it are up to the mayor and the City Council, where the mayor will recommend and the council will decide by majority vote."
At-Large Councilor Thomas Jones said, "This money is a reflection that we (mayor and council) were frugal and held down spending. One matter we will consider is putting money back into the capital improvements fund that was taken to upgrade city phone and computer systems.
"I also think we should look at improving sidewalks in older parts of the city, because a lot of people in Newburyport walk. And I think we should look at funding new technology for the library."
Ed Cameron, the city councilor representing Ward 4, said that a surplus is to be expected because cities, by state law, are prohibited from running a deficit.
"This isn't really free money, and out of an operating budget in the upper 40-millions ($49.1 million), it is not a large amount," Cameron said. "But if we are thinking about upgrades, we need work on the city's infrastructure, especially sidewalks.
"I'd also like to see us someday get back to the schools and return some things that we lost a few years ago, like foreign languages (at the middle school) and arts and music programs."
Bob Cronin, city councilor representing Ward 3, said, "I expect the mayor's office will come up with a list of needs, and the council will respond.
"That said, improving sidewalks in the city is a priority, even though we have designated revenue for this need from the (local) meals tax we collect. Another need is to look at equipment for snow removal."
Mayor Donna Holaday was pleased to learn of the surplus but circumspect about what to do with it.
"I'm ecstatic that there's extra at the end of the fiscal year, and this is a good sign, because we want to maintain our strong bond rating," she said. "We have a lot of capital needs, including two trucks. And we're always thinking about priorities, but we can't do anything immediately. It will be confirmed by the (state Department of Revenue), and we might look at this in November."
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