LYNN — The city has been removed from financial oversight of the Commonwealth of Massachusetts.
The city was notified that oversight would be lifted last week after it made an $8.1 million payment to complete the repayment of $14 million in deficit bonds the city had borrowed in fiscal years 2018 and 2019, which were used to balance the city’s budget amid shortfalls.
The city will no longer need to complete a pro-forma tax recap upon the City Council approving a budget, submit audited financial statements prior to the approval of the tax rate, submit a balance sheet in order to have free cash certified prior to the approval of a tax rate, or submit quarterly reports to the state Division of Local Services.
Mayor Jared Nicholson said in a statement he was looking forward to the elimination of the debt giving the city more financial flexibility in the future. He added that the city would continue acting in a fiscally-responsible manner.
“We are very pleased to put this behind us,” Nicholson said. “We wouldn’t be here without the shared sacrifice and ongoing discipline on the part of the previous administration, my fellow elected officials, our current financial team, led by Chief Financial Officer Michael Bertino, and the entire team of city workers.”
Nicholson said Senior Deputy Commissioner of Local Services at the Department of Revenue Sean Cronin, who served as fiscal stability officer, was also instrumental in the city’s fiscal affairs in recent years.
City Council President Jay Walsh said the elimination of the debt was a major step forward for the city.
“It means more resources can be allocated towards improving our local infrastructure and serves as a promising sign for Lynn’s future growth and development,” Walsh said in a statement.
