WESTFIELD—Residents are not expected to see a property tax increase this year, Mayor Brian Sullivan announced late last night.
Mayor Brian Sullivan
The announcement, which came via press release, would mean a stop to nine consecutive years of rising property taxes for residents. The stabilization of property taxes will only come if Westfield city council accepts an amended request from Sullivan to apply an additional $1.33 million from the city’s free cash account to offset the expected tax levy. The city was originally expected to utilize just $1 million from the free cash account, but with the announcement it would increase the total to over $2.3 million.
From the press release:
“Given the current financial climate in our state and our country, it is very unusual for a Mayor to provide good news to his constituents when it comes to property taxes. However, given some good financial planning, hard work from many very qualified people, and the City taking advantage of some opportunities, it is my pleasure to announce just that type of good news to the residents and businesses of Westfield… I am pleased to announce that by all indications and calculations, the citizens of Westfield should see no increase in their property taxes for the upcoming tax year.
According to the press release, the stabilization of property taxes was a result of the city’s “diligent financial planning,” including a deposit of $1.2 million into the city stabilization fund and a $600,000 deposit into Westfield’s Other Post-Employment Benefits (OPEB) account.
OPEB, which exists in most municipalities and state governments, are benefits given to retired municipal or state employees in addition to their pensions, which may include healthcare, legal, disability or other services. According to a study done under Mayor Daniel Knapik in 2013, the OPEB liability at that time was over $275 million. A more recent number was not immediately available.
Sullivan said in the press release that use of the $1.33 million from the free cash account toward the tax levy was partially due to his discussions with the city council finance committee and council president Brent Bean.
The announcement however, came with a warning from Sullivan.
“Please be forewarned, this type of a free cash expenditure may not be possible in the upcoming years, and this is not a present simply for the sake of bringing a little Christmas cheer,” Sullivan said in the press release. “This announcement comes on the heels of prudent financial planning and sacrifices which Westfield has been practicing for several years.”
To see Sullivan’s press release, click on this link.
