Springfield committee recommends $221 tax increase to average homeowner

This article first appeared on Masslive.com on November 19th, 2024. I participated in the City of Springfield’s Tax Rate Review Committee, which determines the tax rates for residential and commercial properties. The experience was eye opening, and reaffirmed my belief that new voices on the City Council are needed to Keep Springfield Affordable, as property taxes have drastically grown in the last ten years.

Member Juan Latorre, an engineer agreed with that proposal saying over the last decade this is the highest increase to the average homeowner. In previous years most increases are more in the range of $150. Last year’s increase for the bill on the average home was $161.

—-

SPRINGFIELD – A tax classification committee will recommend the City Council shift the biggest tax burden permitted onto businesses this year, but the average homeowner will still see the largest increase they have in a decade.

The eight-member advisory committee voted Tuesday to recommend a tax rate that will raise the tax bill by $221 on the average home, which is assessed at $255,800 for fiscal year 2025, to $4,045.

The proposed tax rate will technically drop from the fiscal year 2024 rate of $16.06 for every $1,000 a home is valued to $15.85 per $1,000. But assessments continue to increase so most homeowners will see an increase in their bills, said Patrick Greenhalgh, chairman of the board of assessors.

The committee also voted to shift the burden on commercial properties to the maximum allowed by law, which will push businesses to pay 1.75% of the levy, or amount needed to pay the city’s expenses this year, while homeowners will pay 0.77% of the amount.

That change will increase business properties’ taxes by 19 cents or $35.60 per $1,000 valuation, but commercial properties have not seen as much of a hike in assessed worth that homes have, Greenhalgh said.

The shift was recommended by Mayor Domenic J. Sarno. Greenhalgh, who is also a committee member, said he agreed with the proposal.

“It is as much relief as we can provide for the residents. I think the commercial rate doesn’t go up drastically,” said Wilfredo Lopez, a seven-year member of the advisory committee and owner of Homes Logic Real Estate.

The recommendation will now go to the City Council which is scheduled to adopt a new tax rate on Monday.

Several city councilors repeated concerns that homeowners need relief from annual tax increases, especially at a time when they are also facing increases in the cost of food, medical care and other expenses.

“It is my annual cry,” City Councilor Zaida Govan said. “Can we find some relief for the residents?”

While Springfield has the lowest tax bill in the region and one of the lowest statewide, she said the city also has one of the lowest median incomes so residents are less able to afford an increase.

This year the city has about $17 million remaining it the free cash fund that was certified two weeks ago. Govan said using $10 million of that to reduce the tax levy would give residents some relief.

It is up to the mayor to allocate that money. So far, he has agreed to reduce the levy by a total of $3 million with $2 million coming from interest earned in investments in federal treasury bills and an additional $1 million from last year’s free cash.

Every $1 million used to reduce the tax levy cuts all residential and business bills by a small amount. The average homeowner’s bill will be reduced by $15, Greenhalgh said.

Committee members agreed they felt using $10 million is too radical after Cathy Buono, chief administrative and financial officer, explained the city has a number of expenses it must pay and should have some in reserve for emergencies.

“I will recommend we request $2 million to get that increase under $200,” said Mark Howard, a committee member and economics professor at Springfield College.

Member Juan Latorre, an engineer agreed with that proposal saying over the last decade this is the highest increase to the average homeowner. In previous years most increases are more in the range of $150.

Last year’s increase for the bill on the average home was $161.

“Two million is a reasonable number,” City Councilor Timothy Allen said. “I don’t see the harm in expressing that. Is the mayor going to pay attention? I don’t know.”

Under the city charter the mayor is the only person who can submit a spending proposal like that one. It must also be confirmed by a City Council majority.

City Councilor Tracye Whitfield said she would like to see something in the middle such as a $4 or $5 million infusion of free cash, saying $10 million was too much with the other expenses the city faces.

“What we know is taxes are through the roof. Taxes have gone up every year for nine years,” she said.

She argued city officials are always saying money has to be set aside to pay for unexpected expenses such as last year’s major water main break that cost more than $4 million to repair, but she questioned the wisdom of saving money for things that may or may not happen when they know taxpayers need relief.

Retired city assessor Richard Allen said he is alarmed by the growing size of the city budget and saying the only true way to cut taxes is to reduce the amount of money needed to fund the city’s operation.

The city’s levy increased by $19.5 million this year. “I’m struck by this historic increase in the levy and I hope there are productive discussions to reduce the levy,” he said.