At the end of last fiscal year (ending June 30), the City of Newton had $23,633,416 of Certified Free Cash available. So far, $6.5 million of that has been appropriated, and uses for another $4 million are proposed and pending, leaving $13.1 million unallocated. So as of today, December 10 — exactly 44% through the current fiscal year — the City has allocated (perhaps by chance, perhaps by design) 44% of its Certified Free Cash.
In municipal finance, “Free Cash” refers to unrestricted funds available to the City government from the previous year. The amount is certified by the state, taking into account surplus revenues, funds appropriated but not spent, and miscellaneous adjustments.
Even though there may be Free Cash each year, the amount varies and is not guaranteed, so Free Cash is considered “one-time money” and thus is generally used for one-time expenses — or building up reserves. Free Cash does not have to be used in the year after it is certified. Any unused Free Cash is carried over, going into the calculation of Free Cash for the following year.
The $6.5 million of Free Cash already appropriated this year is allocated as follows (follow the links for details including how City Councilors voted):
- Newton Fire Department ($2,925,000)
- $1.8 million for Fire Ladder Truck #3 (Public Safety & Transportation, Finance)
- $1 million for PFAS-free gear for firefighters (Public Safety & Transportation, Finance)
- $75,000 for Fire Shift Commander vehicle (Public Safety & Transportation, Finance)
- $50,000 for Fire Self-Contained Breathing Apparatus (SCBA) gear (Finance)
- Newton Public Schools ($2,381,308)
- $2 million for NPS Stabilization Fund (Programs & Services, Finance)
- $338,119 for McKinney-Vento Homeless Transportation (Programs & Services, Finance)
- $43,189 for NPS, collected from Helpsy textile recycling (Finance)
- Other ($1,200,000)
- $1 million for vehicle replacements for Dept. of Public Works (Public Facilities, Finance)
- $200,000 for traffic calming capital projects (Public Facilities, Finance)
The $4 million of Free Cash that is pending is proposed to be used as follows:
- Newton Public Schools ($3,000,000)
- $2,000,000 for NPS Math Curriculum (Programs & Services, Finance)
- $700,000 for capital improvements to Newton North HS (Public Facilities, Finance)
- $300,000 for new VOIP phone systems for both high schools (Programs & Services, Finance)
- Other ($1,000,000)
- $775,000 for improvements to municipal buildings (Public Facilities, Finance)
- $225,000 for Police/Fire security cameras and access control systems (Public Facilities, Finance)
Regarding upcoming uses for the remaining $13.1 million of Free Cash not yet allocated, the City’s Chief Financial Officer, Maureen Lemieux, told Fig City News: “The Mayor and her team make final decisions on the use of free cash every spring. The final impact of the winter storm season and additional operating needs become clearer as the fiscal year moves into the third and fourth quarters.”
