WESTFIELD – Mayor Daniel M. Knapik presented the proposed 2014 fiscal year municipal budget to the City Council last night seeking an increase of slightly over one percent from the budget he presented a year ago.
Knapik gave the City Council the details of his $127,367,854.49 FY 2014 budget package, which represents an increase over the $125,215,664.19 FY 2013 budget he presented a year ago, but a decrease of the amended or actual 2013 spending level of $128,667,747.34.
The amended 2013 municipal budget is 2.76 percent over the original budget and is substantially higher that the 1.01 percent increase, contained in the proposed 2014 budget, over the original 2013 package.
Departments, boards and commission requested a 2014 budget totaling $130,858,860.18.
Knapik said that he cut funding from several department budgets because the City Council recently approved appropriations of free cash for capital equipment and projects that were initially included in departmental 2014 budget requests.
Another fact that could impact the proposed budget is the local aid numbers in the state budget now being reconciled between the House of Representatives and the Senate. Knapik said that the House budget would increase unrestricted local aid, while the Senate budget would increase “circuit breaker” or special education reimbursement, a major cost center in the School Department budget.
The School Committee approved a budget of $6, 045, 432, while Knapik approved school funding at $55,509,895, meaning that the district will have to either find of cut $535,575 to bring that budget into balance.
“We’re still working on the budget as of a few minutes ago,” Knapik said to the City Council members, stating that he used the most recent numbers to estimate the level of state aid to the city. The city’s budget projection is based on numbers between the proposed House and Senate budget packages.
Knapik said that the city has $4,678,016 currently in the stabilization account and $1,220,738 in the free cash account. Typically some portion of that free cash account is transferred into the stabilization account at the end of the fiscal year.
Another consideration is that the city is scheduled to receive a number of federal and state reimbursements, totaling $1,620,000 in the up-coming fiscal year, “so free cash will start at $1.6 million even before our local numbers are added to that.”
The state Department of Revenue (DOR)certifies free cash in either November or December, making that funding available for the second half of the city’s fiscal year. The DOR certification process examines the previous year’s fiscal budget to ensure that all financial obligations have been met and any unencumbered funds are added to the free cash account.
Earlier this month the City Council authorized Knapik to make interdepartmental transfers of up to $10,000 to balance the city’s 2013 fiscal year accounts to make without council authorization. Any transfers exceeding that amount still require council approval.
Ward 5 Councilor Richard E. Onofrey Jr., the Finance Committee chairman said that he will set up departmental meetings and hopes to have his committee review of the proposed 2014 budget complete by the City Council’s June 16 session so the entire council can act on the proposed budget.
The City Council typically cuts some level of funding, but does have the ability to restore departmental budgets to the previous fiscal year level if it deems cuts in the department are too draconian.
The Finance Committee process is to call in department supervisors to discuss their proposed budgets and to identify additional funding needs which are often addressed later in the fiscal year when the free cash account becomes available.
