WOBURN - City Treasurer/Tax Collector Donald Jensen told the City Council at its most recent meeting that the city's finances are secure and its cash is available.

"I feel confident, if need be, I would be able to gain access to the city's funds," said Jensen.

Council members requested Jensen to address the city's financial solvency in the wake of the recent turbulence in the stock market.

"Many colleges had their endowment money frozen," said Alderman at-large Paul Denaro. "If we needed the money can we get our hands on it? I want to make sure we can keep personnel and services."

As of June 30, the city had slightly less than $33.9 million in accounts and investments in a dozen banks, and the funds are "collaterialized" in all but one insitution which holds about $1.43 million in 12 accounts, most of which have a balance under $50,000.

In a response to a question from City Council President Charles Doherty about the city being temporarily "frozen out" of its investments, Jensen said the account - $2.6 million for affordable housing that was given as part of an agreement with the developer of the InWood site off Route 93 - has been transferred to another investor, Merrill Lynch.

The city's two other stabilization accounts - $11 million for the schools and $2 million for the general fund - were already with Merrill Lynch.

"The (school) stabilization fund started with a little over $9 million and has grown about $2 million in five years," said Jensen. "That's about a 4 percent annual increase."

Armand Bassi, a Vice-President with Merrill Lynch, said the majority of the city's investments are in Treasury bills and "other government securities" that are designed to "maintain capital preservation and liquidity."

Like everyone other investor, the city took a loss in one account in June due to "market flucuations."

Jensen had no information about the status of the city's investments or accounts after June 30, but has assured the council "the security of the asset is utmost, and our banks are aware of that."

Ward 2 Alderman Richard Gately asked about some escrow accounts that are being converted from passbooks to statements, something Jensen termed an "on-going process."

Denaro asked about the $41 million "check" the state Treasurer's office presented to city officials last week to reimburse the city for the White/Woburn High project.

Ward 5 Alderman Darlene Mercer-Bruen suggested the check was a "photo-op" for the press. The state program offers as "pay-as-you-build" system that reimburses communities on a monthly basis.

These timely payments have prevented Woburn from having to issue debt to finance the MSBA's share of projects costs saving Woburn taxpayers millions in avoided interest costs, according to a spokesman from the Treasurer's office, in a press release that was issued along with the $41 million "check."

Denaro praised Jensen for keeping the council apprised of the city's financial situation.

"It's important we get it out in public," he said. "No (other) community can sit back and talk about $11 million in reserves. You've done a very nice job."