WESTFIELD – The discussion of the tax shift took a back seat to the question of appropriations of Free Cash to reduce the FY17 tax levy during Thursday’s City Council meeting.
Mayor Brian P. Sullivan, during his briefing before the meeting, requested $1,034,300 from Free Cash, which he said would leave more than $2.4 million in the account.
Mayor Brian Sullivan
“I feel comfortable leaving that number to get through the rest of the year,” Sullivan said. He said there is also over $7 million in the Stabilization Fund for emergencies.
“This is the most money ever used to give back to taxpayers,” Sullivan said, adding that he hoped the City Council would use the appropriation to reduce the tax levy from 2.5% to 1%. He also said that the Council has to vote on it by Dec. 15, in order to get the tax bills out.
At-large Councilor Dave Flaherty said the Finance Committee has set a meeting for Dec. 8 at 5 p.m. to discuss the matter, and asked the Council to wait until the Dec. 15 meeting to vote.
During the meeting, Flaherty made an amendment to the motion, requesting that an additional $1,338,100 be appropriated from Free Cash in order to achieve a 0% tax increase. The amendment would leave $1.1 million in the Free Cash account if both appropriations are approved, according to Flaherty.
Flaherty said that the Finance Committee expects that that the City will end the year with additional Free Cash, and if the request is approved by the City Council, the FY17 property tax levy will be equal to FY16 plus new growth.
The amendment, to go to the Finance Committee, passed 10-2, with Ward 2 Councilor Ralph J. Figy and At-large Council Stephen Dondley opposing.
During the public hearing on the tax shift, several business members in the community spoke in favor of reducing the tax shift to businesses.
Kate Phelon, executive director of the Greater Westfield Chamber of Commerce, asked for a reduction in the tax shift to 1.59. Phelon noted that the state has capped the shift at 1.75, after which additional taxes would have to be put on residents.
Phelon also noted that businesses pay higher fees without receiving the same services as residents from the city, such as trash collection.
Dawn Thomas of Instrument Technology, Inc. went further in requesting a 1.55 tax shift for businesses. She also asked for additional money from Free Cash, noting that the minimum wage will be going up in January.
Ray Denardo of Howard Drive spoke up for the residents, saying the Chamber would not.
“Please help relieve the tax burden for the residents,” Denardo said.
Ward 3 Councilor Andrew K. Surprise called the tax shift “ridiculous,” because it pits residents against businesses.
“We should have cut millions out of the budget this year. Instead, we took $100,000. We can’t keep going the way we’re going. I would encourage my fellow councilors to support that additional Free Cash,” Surprise said.
“The real economy is being able to have jobs, being able to spend money. Councilor Surprise is absolutely right,” At-large Councilor Dan Allie said, adding that “not having a tax increase is like having a pay raise.”
Flaherty commented that the time to change the budget is in June, and encouraged the business owners and residents to come and speak at budget time.
Dondley responded that shaving a few points of the CIP tax shift isn’t going to make a difference. He pointed out that the City receives only 27% of taxes from business and industry.
“We could be doing a much better job of attracting new businesses into Westfield. That should be our number one focus,” Dondley said.
At-large Councilor Daniel Knapik agreed with Dondley’s point.
“We’re not going to get out of this problem. Let’s take a look at the underutilized property we have now. Let’s talk about the things we can do,” Knapik said.
Council president Brent B. Bean, II stepped out of his chair to weigh in on the debate. He said he had a quick conversation with Flaherty about increasing the Free Cash allotment.
“I think it’s a great idea. We definitely are healthy in Free Cash and Stabilization,” Bean said. He also responded to a comment by Flaherty that pointed to the raises in city contracts as one of the problems
“If you think those contracts for City Employees are budget busters, you’re wrong,” Bean said. “It’s the Commonwealth’s problems. There’s not enough money to go around, and things cost a fortune in this state. It’s very hard to do business in Mass., and that’s what we’re dealing with.”
The discussion will now go to the Dec. 8 Finance Committee, for a vote at the Dec. 15 City Council meeting.
