HOLYOKE — With state officials still monitoring its recovery from a financial reporting crisis, Holyoke is moving to hire its first chief administrative and financial officer, a key position meant to stabilize the city’s troubled fiscal operations.
City Council President Tessa Murphy‑Romboletti has been meeting every week with the state Division of Local Services. She said the state has been pleased with progress the city is making, even as officials continue sorting through major gaps in its books.
In recent years, Holyoke struggled to finish basic financial documents, which caused the state to freeze millions in aid. The city is now trying to complete audits for several years at once.
A spokesperson for the Division of Local Services said the agency “continues to work closely with local officials in the City of Holyoke to support its ongoing financial management operations and practices.”
Murphy‑Romboletti said the city has turned in everything needed for the fiscal 2023 audit and that consultants are reviewing the material.
She said Holyoke has also submitted what it needs for the 2024 audit and consultants have begun reconciliation work while gathering information for 2025.
“I am confident that we are on the right path and grateful to the state for their continued support and our work,” she said.
Holyoke wraps CAFO search
As the cleanup continues, Holyoke is searching for a new chief administrative and financial officer, a major position created to help overhaul how the city handles its money.
Applications are due Monday. Murphy‑Romboletti said the mayor has formed a search committee that includes two city councilors, Patti Devine and Mike Sullivan, to help review candidates.
Sullivan said members are considering about eight résumés. He described them as “very qualified and interesting candidates.” Once the review is finished, the group will make a recommendation to the mayor and the city’s human resources department, he said.
Not all councilors feel informed about the progress, however. Ward 4 Councilor Richard Purcell said that since the financial modernization act passed, he has mostly heard that Murphy‑Romboletti was meeting with the state in Boston. He said he wants to see proof that improvements are happening.
“It’s great that we have finally got it done,” he said of the modernization plan. Still, he said he wants evidence “that we are accomplishing something.”
Purcell recalled how the city briefly lost access to its free cash account, saying that money is vital. “It helps get stuff done and helps keep taxes low.”
Stabilizing Holyoke’s finances
Holyoke’s financial troubles reached a crisis point last fall. In October, the state froze local aid payments because the city had failed to complete three years of required financial reports, including its 2023 audit and 2024 filings. Without those documents, the state could not certify the city’s free cash, which affected setting the tax rate.
Treasurer Rory Casey has said the problems were “structural” and built up over many years. The city faced unreconciled cash accounts, poor tracking of grants and revenue, outdated technology and staff members who lacked training.
Casey said the Thursday weekly meetings with the state Division of Local Services have been going well and officials indicated their satisfaction with the progress made to date.
Since the act was adopted and signed into law six weeks ago, Holyoke has focused on making operational changes to ensure compliance and stability, Casey said.
This includes training staff on updated processes, recruiting for key financial positions and strengthening day-to-day financial management.
“More specifically, we are training existing staff on reconciliation procedures using FY26 accounts, automating processes that were previously handled manually, and enhancing internal controls and cross-department communication,” he said.
Casey said the next big step is finishing the 2024 and 2025 financial reviews and confirming how much free cash the city holds.
He expects that work to be done before the fiscal year ends in June. Once that happens, he said, Garcia and the City Council will be able to decide how to use the money under the city’s financial rules.
“It will also mark a return to full compliance with regulatory reporting requirements and signal that the city is back on track financially,” he said.
Garcia has the authority to reappoint the treasurer position every 60 days and has indicated his intention to do so once the current term expires.
“I have agreed to continue serving in this role on a temporary basis to support continuity and assist with the transition. I have no intention of seeking appointment to the permanent Treasurer/Collector position,” Casey said.
Casey said ideally, this financial modernization plan would have been in place before the start of the current fiscal year last July 1, allowing for a longer transition period.
With its passage in February, the city is working on an accelerated timeline to have all elements fully implemented by the start of fiscal year 2027, he said.
“While the timeline is ambitious, there is a strong, shared commitment across City Hall to meet that goal, and the collaboration between departments has been encouraging,” Casey said.
Holyoke pushes toward hiring new finance chief as audit work continues
