GREENFIELD — With internet coming from Greenfield Community Energy and Technology, questions have arisen about how the provider’s funds should be managed.
The city is seeking to create an enterprise fund for Greenfield Community Energy and Technology, a step some city officials claim would allow for more transparency and keep money from the quasi-municipal service separate from other city accounts, including the city’s general fund. However, ambiguity exists in the process and oversight of the enterprise fund according to existing laws.
City Council is expected to discuss the creation of the fund during its meeting Wednesday. The discussion was tabled during its last meeting Feb. 21.
GCET Executive Director John Lunt said, “generally an enterprise fund is used where a municipal organization charges fees for services,” with water and sewer divisions being examples.
The establishment of an enterprise fund could provide transparency, Greenfield Finance Director and Accountant Elizabeth Braccia noted, by providing her with a “really clear way to account for” the expenses and revenue developed by GCET, that would then be reported to the state’s Department of Revenue at the end of the year. In addition, Braccia said an enterprise fund could allow for City Council oversight, like other budgets in the city, and would have to be voted on by the council.
GCET would remain a city entity, Braccia said, remaining under the city’s tax identification. Any borrowing for GCET would have be done by the city, with approval needed by City Council, Braccia said.
The ability to establish the enterprise fund, according to Braccia, comes from the Massachusetts General Law Chapter 164, where telecommunications services were added about eight or nine years ago. This addition, Braccia said, allows for municipal light plants, which GCET is, to provide telecommunications services and operate like a business in some ways.
Braccia said Chapter 164 does not capture the entirety of telecommunications. Among the issues is the lack of oversight from a state board, including the setting of rates.
“It’s a new animal,” Braccia said.
City Councilor Isaac Mass also questioned how the oversight of the fund would occur.
“Bottom line is, there’s no clear answer on who has the oversight of GCET,” he said. “Who is the checks and balances of commission? It’s supposed to be a division of the state, but they aren’t taking responsibility.”
Mass also said the city received a letter from its attorney Gordon Quinn expressing an opinion that the city cannot set up an enterprise fund for GCET.
Mass suggests the discussion should be tabled “until we get better answers.”
Mayor William Martin noted the process is ongoing and has said the city is scheduling to work with an attorney who is an expert on municipal light plants.
You can reach Dan Desrochers at:
ddesrochers@recorder.com
(413)772-0261 ext. 257