SPRINGFIELD – The City Council voted Monday to use $5.7 million of the $18.6 million in free cash certified in mid-November to pay down liabilities and old debts.
For several years, the city has tried to put 10% of its free cash into a reserve account saved to make state required payments to its underfunded pension account.
Free cash is made up of money budgeted but not spent, funds earned from investments and fee payments.
An additional 10% is being tapped to beef up the account that pays for health insurance and other benefits for employees, which also has a huge liability, said Cathy Buono, chief administrative and financial officer.
About $2.1 million was also allocated to pay off COVID expenses that were not covered by reimbursements from the state and federal government.
Buono said the city has appealed those denials several times and has exhausted all other options.
