The city currently has $8 million in cash reserves.
Daniel M. KnapikWESTFIELD – Mayor Daniel M. Knapik said this week he is prepared to use some of the city’s cash reserves to help balance and retain services in the fiscal 2012 municipal budget.
Knapik declined comment on budget projections for the year that begins July 1. He said he expects the School Department to formally address new year financial issues beginning April 4 and that the full city budget will be presented to the City Council for consideration at its May 5 scheduled meeting.
“I do not like to discuss the doom and gloom of what might or might not happen,” said Knapik about his budget plans. However, he did say, “We have, in recent years, already cut as much as possible in programs, expenses and services.”
Difficult issues facing the city continue to be insurance costs and the mayor said a review of insurance programs and costs will be completed shortly. Insurance costs to the city currently are about $14 million annually.
Also, Knapik said “while we will not break any new ground next year we do have some infrastructure issues that must be addressed.
“Right now the budget is fluid. I am awaiting figures from the state on allocations for Westfield for Fiscal 2012,” he said.
Currently the city has about $8 million in free cash and its stabilization account. Knapik used $1.5 million in reserves to offset the current $117 million city budget.
A preliminary School Department budget for the new year represents an increase of about $3 million over the current $52 million school budget.
“I have asked Superintendent Shirley Alvira and her financial team to reduce that by $1.5 million,” said Knapik.
But, Alvira said Wednesday, “It is impossible to live with the same amount for next year. There is uncertainty concerning revenue sources for next year and we are continuing to work with budget figures.”
In the past three years, because of financial constraints, the School Department has lost about 100 positions.
Last year the department was forced to cut 14 positions, but later restored 13 of those with receipt of $1.5 million in federal stimulus funding.
Knapik and Alvira said the budget intent for fiscal 2012 is to maintain public services and programs.
“But, we must be cautious in our financial planning,” Alvira said.
Westfield City Hall