HOLYOKE — One of the fundamental pillars of Mayor Joshua Garcia’s agenda passed Tuesday night, when the City Council voted 11-2 to adopt his Municipal Finance Modernization Act.

Garcia, who has ran on a platform of fiscal responsibility, introduced the act as a way to clean up city finances after several unfilled audits with the state going back to 2023 that has led to the city’s funding being stripped.

The act will serve as a guidebook for how to enhance efficiency, increase auditing, and ensure stricter accountability. It proposes reorganizing departments, including the creation of a Department of Administration and Finance, to tackle past audit issues, reduce reliance on contractors and prevent financial mismanagement.

Garcia celebrated the passing of the act in a Facebook post on Tuesday night, calling it a “giant step in Holyoke history.”

“I want to extend my sincere congratulations and appreciation to the Holyoke City Council for finally passing the provisions in what we have been referring to as the Municipal Finance Modernization Act,” Garcia wrote. “After more than a year of deliberation, and four years of me convincing the public why this is important, this reform will modernize our financial management, strengthens controls, reduces liabilities, and aligns with long-standing recommendations from the state’s Division of Local Services.”

Garcia also laid out some key features.

“Central to the Act is the creation of the Chief Administrative and Financial Officer (CAFO) position, a role the state has urged us to create for nearly 20 years,” said Garcia. “This will bring professional oversight, better coordination, and improved fiscal accountability to our operations.”

The 20-page Municipal Modernization Act was first presented to the City Council last year, and died after it was voted out by an 8-5 margin. But council newcomers who took office in January — Nicole Maisonnet of Ward 2, at-large Councilor Mimi Panitch and Anne Thalheimer of Ward 3 — changed the result this time around.

The three councilors replaced no votes from last year, namely former councilors David Bartley, Kevin Jourdain and Carmen Occasio, with Ocassio being the only one of the three who did not seek reelection.

Also voting in favor on Tuesday were at-large councilors Michael Sullivan, Israel Rivera, Tessa Murphy-Romboletti, Jenny Rivera of Ward 1, Richard Purcell of Ward 4, Juan Anderson-Burgos of Ward 6 and Meg Magrath-Smith of Ward 7.

Linda Vacon of Ward 5 and at-large Councilor Howard Greaney Jr. voted against the act, as they have during past votes on the measure. Neither could be reached for comment on Wednesday.

The mayor wrote, “This success reflects the Council’s constructive engagement and commitment to good governance. I look forward to implementing these changes very soon.”