Overview:
Greenfield Finance Director Stephen Nembirkow informed City Council on Wednesday that cash reconciliation is progressing well, aiming to clean up books by December ahead of January bond bids. Although the city maintains an AA- bond rating, officials anticipate rising interest rates. Additionally, the council approved nearly $700,000 in capital expenses and a multi-year agreement providing cost-of-living adjustments for city employees.
GREENFIELD — Finance Director Stephen Nembirkow informed City Council this week that the city’s cash reconciliation and auditing efforts are looking “generally very good,” and he expects the cashbooks to be cleaned up by December, which would allow the city to put its bonds out to bid on schedule.
Nembirkow said the city’s bonds expire on Feb. 11, 2027, and the city would need to put bonds out to bid in January to be able to borrow funds. Despite earlier concerns raised this summer that the city’s accounting errors could impact its bond rating and ability to borrow, Nembirkow said the bond rating came in at AA-, the same as last year.
S&P Global Ratings’ bond rating scale runs from AAA down to D, with A representing low-risk investments, and D signifying a default and inability to pay. In its explanation of Greenfield’s bond rating, S&P Global Ratings explained the rating reflects “stable operations, adequate fund balances and manageable debt burden,” paired with concerns that growing costs could weaken the city’s reserves and financial stability.
“The negative outlook reflects our view that growing cost pressures could weaken the city’s reserves,” S&P Global Ratings wrote. “It also reflects uncertainty around the city’s financial stability despite the city’s expectation of balanced actuals for fiscal years 2025 and 2026, given the delayed 2025 fiscal year audit.”
Nembirkow said many of the challenges Greenfield faces that were noted in the bond rating are also being faced across the state. While the bond rating has remained the same, interest rates could rise when the city goes out to bid.
“That negative outlook is indicative of the economics and the economies of Massachusetts cities as a whole,” Nembirkow said. “And we shall see what happens with the bond. Right now, bond yields are very high. Right now, we’re borrowing at around 4%. I expect that bond yield to go up at least a percentage point and a half when we do go out to bonds. … One and a half percent on a $9 million, $10 million [bond] — that’s significant money.
“We’ll cross that bridge when we get there; however, we’re in a better place than we were five, six months ago,” he continued. “We’re continuing the work toward the end goal here and making sure the ship is running right.”
Nembirkow said CliftonLarsonAllen LLP’s reconciliation of the cash books is almost complete, and the FY25 audit will begin shortly thereafter.
Earlier this summer, the Department of Revenue identified $1.97 million in reconciling differences between the city’s Accounting Department and Treasurer/Collector’s Office in FY25. The FY25 budget that City Council had approved in May 2024 was $64.87 million. The state expects weekly updates from the city until the books are closed.
When asked on Wednesday if Greenfield is in the red or the black, Nembirkow said it is still too early to tell, but he is optimistic. He added that auditing efforts have found reporting procedures were not properly followed, but he said there are no missing funds.
The errors occurred after the city hired new employees who did not have experience in municipal government to replace Treasurer Kelly Varner, Accountant Angelica Desroches and Finance Director Diana Parsons, who had all resigned in 2024.
Nembirkow also presented information on the results of the FY24 audit that was recently completed by CBIZ of Merrimack, New Hampshire.
“In general, it was a clean audit; however, there are things to work on,” Nembirkow said.
The night before at the Ways and Means Committee meeting, Nembirkow elaborated that the audit included tips for how the city can improve its documentation, which have been implemented. These include cross-training staff and writing detailed procedures on how revenues and expenses should be noted.
Capital purchases
After hearing the update on the city’s finances, the council voted to approve a total of $692,286 in capital expenses to be paid for through borrowing. Councilors voted unanimously to approve all but one of the expenses put before them, tabling discussions on borrowing $110,000 for traffic light upgrades.
The light upgrades would include the intersection of Pierce and Beacon streets, a location that has prompted complaints from residents about safety, particularly with solar glare in the morning and evening. The upgrades would also include implementation of the video/detection hardware, SmartView 360.
Precinct 3 Councilor Ann Dillemuth said this expense was higher than the others and seemed to be less time-sensitive than water/sewer system upgrades. She questioned whether this funding allocation could wait to allow for more review.
Precinct 5 Councilor Marianne Bullock, who also chairs the Ways and Means Committee, said the upgrades are necessary for public safety and would take place at various locations around the city. She added that first responders currently can’t pause some of the lights to ensure the intersection is clear for them to pass in an emergency. She added that while it is not necessarily an urgent need, the problem with the lights is one the city has been hearing about for years and does need to address.
Precinct 2 Councilor Rachel Gordon also asked for more information on SmartView360, and a breakdown of the $110,000 expense.
Councilors voted to table the matter by a vote of 5-3, with Councilors John Bottomley, John Garrett and Wahab Minhas voting against tabling the request. Councilors Sara Brown, Max Webbe and Lora Wondolowski abstained from the vote.
Bullock also suggested tabling the purchase of a $25,000 electric vehicle for the building inspectors, explaining that the plan had originally been to use sewer/water retained earnings to purchase the vehicle, but since the cashbook variances led the state Department of Revenue to bar Greenfield from using those funds until the books are cleaned up, she hoped that by waiting another six months or so the city could use that money again, rather than need to borrow to pay for the vehicle. However, the council rejected the motion to table the electric vehicle purchase in a 7-4 vote, after others argued the vehicle is necessary for employees to complete their work.
“I believe we should support the employees. … They’re our biggest asset,” Bottomley said. “They need to do their jobs, and they’ve made it clear in our meetings that they need these items to do their job.”
Other approved expenses included personal protective equipment (PPE) for the Fire Department, a van for veterans services and electrical upgrades at the Water Pollution Control Facility’s pump house. A complete list is included on the City Council agenda available on the city’s website.
Union agreement
The council also voted unanimously to approve a memorandum of agreement with the city’s Salary Schedule Employees Association (SSEA). The agreement, which has already been ratified by the union, institutes a 2.5% cost-of-living adjustment backdated to July 1.
The city is appropriating $10,900 from the Contract Stabilization Fund to cover the costs associated with the agreement, which include the cost-of-living adjustment and a one-time lump sum bonus of $500 for 16 employees who are at the top step and did not have any step movement in fiscal year 2027.
“It was pretty standard,” Bullock said during Tuesday’s Ways and Means Committee meeting.
The SSEA includes positions across several city departments, such as the
assistant library director, conservation agent, engineering superintendent, veterans services assistant and recreation assistant director.
In addition to the cost-of-living adjustment for FY27, the agreement includes a 2.5% cost-of-living adjustment effective FY28, and another 2.5% for FY29. It also removed the $1,000 stipend for the library’s information technology (IT) facilitator and $2,000 stipends for the field superintendent and assistant field superintendent, while creating a new reimbursement ranging from $100 to $300 for those in eligible positions to purchase Occupational Safety & Health Administration (OSHA)-standard safety shoes or boots.
With the cost-of-living adjustment, pay will now range from $21.04 per hour at the lowest step and grade to $50.15 per hour at the highest step and grade in FY27. By FY29, the end of the three-year agreement, the lowest pay rate will be $22.11 per hour, and at the highest step, pay will be $52.69 per hour.
New language was added stating the city agrees to replace any eyeglasses, hearing aids, clothing and other personal articles of Department of Public Works and Recreation Department employees that are damaged in work-related incidents where the employee did not show negligence.
