The Chelsea City Council approved a request from City Manager Tom Ambrosino to clean up and make a big-time deposit into the City’s savings accounts.
The Council approved a $15 million transfer into the Stabilization Fund on Monday night, and also approved a $5 million transfer into a new School Stabilization Fund. At the same time, three old savings accounts were closed out with about $300,000 going into the Stabilization Fund.
The requests came at the behest of Councillor Bob Bishop, who made the requests last month and presided over a committee meeting two weeks ago discussing the matters.
Bishop had indicated that he would like the money in the Stabilization Fund because he believes the City needs to save more money in case of a downturn in the economy. On the background, having the money in the Stabilization Fund gives the Council more control over any spending due to the fact that it requires a two-thirds vote of the Council.
Ambrosino said he supported both transfers and believed that the School Fund was a wise idea given that there are several projects coming up on the City’s schools.
All of them, he said, are in the Capital Improvement Plan.
In the same financial vein, the Council approved the final $3 million payment on the Clark Avenue Middle School project. The City has been paying cash wherever it can on the project – which is still under construction until this summer – to save money on interest payments accrued from having to borrow.
Part of the project is also funded by state reimbursements.