While I am disappointed we were not able to lower the property tax rate further in 2015, I am mindful of what has been accomplished, and will work to the best of my abilities for all the people of Westfield, with the proper respect for, and listening to all parties.
I appreciate the work by Mayor Knapik on managing the city’s finances, budget, stabilization fund, our bond rating and premium that added 4 million dollars to free cash. I want to thank all the members of the city council for their efforts, especially those who met with the Mayor, Councilors Sullivan, Keefe and President Bean. Thank you to all the people who attended the public hearings, and spoke. I believe all these efforts were needed to help reduce the tax levy.
I was in favor of using a small portion of the stabilization fund for tax relief, or obligations such as partially restoring the health Insurance trust fund, or other post employment benefits.
In June, we voted to put all the free cash into the stabilization. According to the DOR, a city should maintain about 5 percent of its operating budget in a stabilization account, which is a very safe, non-interest bearing account. With $6.2 million, Westfield is in a good standing.
I understand the Mayor’s reluctance to dip into stabilization as it sends a poor message to the rating agencies. According to Mayor Knapik, some communities do not put free cash into stabilization. With that in mind, we should carefully consider adding additional funds to it.
The people of Westfield elected us to work to together to represent them. I believe that beginning in February, the city council should put together a working group, to meet with the mayor to work on issues of concern. The mayor is working to improve the city’s bond rating to AAA, negotiating with the health fund trustees to move to a 6 week premium holiday, and other cost cutting measures, which will save the city money in 2015 and the future.
I agree that we need a balanced solution to fund present and future obligations and projects. I believe we can do better controlling spending, but at this time people need some tax relief.
We need to listen to people and business owners, and work as community so we are not taxing our parents and neighbors out of their homes trying to maintain a level of government many cannot afford.
Many of our neighbors, homeowners and business owners, working families and seniors on fixed incomes are struggling financially, and cannot afford higher property taxes.
The issue is not that taxes on homeowners will only increase a few dollars a month, as long as we increase taxes on businesses. This pits the homeowners against businesses. Westfield has one of the highest commercial tax rates in western Mass.
How does this help small business, create jobs, or make Westfield more business friendly?
The fact is, for many years, people in the private sector have been concerned about making ends meet, losing or finding a job, stagnant wages or income, inflation, or trying to stay in business. Some people cannot retire. Others approaching retirement are already being taxed at a level they calculated to be at when they retire, and may not be able to remain in their homes or in Westfield.
The issue for many is that property taxes have increased every year for many years. One gentleman spoke about his taxes increasing 23 percent over 9 years. What do you say to a business owner, whose taxes used to be $8000, but are now $15,000; or a homeowner, whose taxes have gone from $1300 to $3500 or $4200?
If we cannot offer tax relief to our citizens who need it, when we have million dollars in free cash and stabilization, when can the people of Westfield expect some relief? We must continue to work toward a balanced solution. I would encourage all parties, from city employees and department heads, from parents and our unions, to look for and offer suggestions, and work toward and support all reasonable efforts on cost savings in 2015.
I want to wish the good people of Westfield, a Happy Hanukkah, and the Feast of Dedication. May our faith and oil also keep burning. Merry Christmas. May you seek and find the true meaning of Christmas and may God Bless us, everyone.
City Councilor Dan Allie
Disclaimer: The views expressed in this column are those of the author and not the staff, editor, or publisher of this publication.
