City Council Votes to Not Raise Property Tax
Dan Allie
I wish everyone a healthy and prosperous New Year.
Last month, the City Council voted to not raise property taxes.
After 9 consecutive years of tax increases, it was the right thing to do to help working families, small business owners and seniorsliving on fixed incomes.
The city had 7.3 million dollars in its stabilization fund and 4.3 million dollars in free cash. At our December 1st,meeting, the Mayor proposed using 1.3 million dollars from free cash. Some councilors,including myself believed the city had sufficient funds on hand, and that taxpayers deserved a break.Atour December 15thmeeting, Mayor Sullivan announced he would use 2.3 million dollars from Free Cash to balance the budget.
I would like to thank Mayor Sullivan for agreeing to not raise taxes, and for the efforts of our Finance Committee, City Councilors and others who worked on the budget and city finances.
The residential rate will be $19.42 and the commercial rate $37.09.The city is currently at 89.4% of the levy ceiling, the maximum amount of property taxes allowed under Proposition 2 1/2.The levy ceiling is the total assessed value of real and personal property, plus new growth for the year, multiplied by 2.5%. Revenue from new growth is typically between $800,000 and $1,200,000. New homes starts, wages and property values have been relatively flat.
According to Councilor Dave Flaherty, “The city should consider reducing the growth in the city budget, and look for new revenue sources and development, because even with a zero increase in levy limit next year, taxes could go up 3.42%. A 2.5% increase in taxes next year could result in taxes going up almost 6%.”
The total payroll for the city is about 69 million. The city council was not given the costs for years 2 and 3 of the recent labor contract, but a 2.5% increase would cost about 1.725 million, plus longevity, step, and track increases of 750,000 for a total of 2.475 million, in year 2, and then again in year 3. However, the school department alone isprojecting a payroll increase of 2.3 million this year.
This should make it obvious to everyone that if we fail to control spending growing faster than our ability to raise taxes, or residents ability to pay taxes, that we will have a issue unless we see an increase from local aid, free cash or an increase in revenue.
Many people cannot afford higher property taxes. No government has ever taxed its citizens into prosperity. I believe our economy works best when people have more of their money to spend, go shopping or out to eat locally, and invest.
I also believe the state needs to keep its promises, solve its own problems and restore funding for local aid and the Quinn Bill, before it considers any new spending or programs.
These cuts have cost cities in Massachusetts millions of dollars every year, adversely affecting education budgets and property taxes. Westfield taxpayers pay an additional 1.5 million dollars every year. People have had enough of broken promises, paying higher taxes while getting cuts in services.
We need to do better. So how do we, as a city move forward?
With incomes and property values flat, we need new growth and revenues.
The council has been presented a 15 million dollar bond request from the Gas & Electric to expand fiber to the entire city. This will provide residents with better service at a much lower cost. There ought to be a way to provide some benefit to the city, and consideration forany damage to our roads.
Second, we need to get off the merry-go-round of state programs, and get down to the business of providing basic services that people can afford, and living within our means.
The council is consideringastate program that seeks to get cities to adopt aComplete Streets policy regarding all new construction, instead of just providing funds to fix our roads and sidewalks.
Implementing this policy and the evaluation of its effectiveness will mandate all sorts of things that city boards, departments and officials will have to do.
I havemany concerns with the language in the64-page Complete Streets proposal, such as:
- Appointees to each Board/Commission should include at least one member who demonstrates or pledges specific support for bicycle, pedestrian or Complete Streets principles and facilities.
- Cost alone shall not be considered a valid reason for rejecting further pursuit of such principles or options.
- Complete Streets design recommendations shall be incorporated into all phases of all publicly and privately funded projects, as appropriate.
We all should ask, “Who writes this stuff?” What agenda and goals are they promoting that people should pledge support to, and mandate policies be incorporated into all projects, and not consider costs? This takes control away from local government.
People should be appointed to boards and commissions based on experience, expertise and wanting to serve the community. Period.
Too many of our laws and policies are being written by unelected bureaucrats, regulatory agencies, planning commissions, academic experts, and international organizations, rather than local and state legislators, or national organizations. For example, the International Code Council wrote the “Stretch Code” for our state building code.
Can you believe the audacity of the state telling cities that cost should not be considered a factor?Everything the state and federal government does costs too much.
It cost 500,000 dollars for the clock downtown, or to install a traffic light at Southampton Road School.
The state spent 400 million dollars on 2 health connector websites. The first website did not work and could not transfer data to the second one. This created enormous problems for 400,000 residents. Governor Patrick could have sought a waiver from the federal government from ObamaCare, since Massachusetts was the model and the state had a website Governor Romney built for 10 million dollars. This self-inflicted wound wasted millions and did not buy so much as a Band-Aid.
We pay 600 million dollars a yearto the Registry of Motor Vehicles for a service that costs 60 million, and service has never been worse.
Weare painfully aware that the state has a history:
- of changing the rules down the road, including the ability to “opt out of programs”, as it did with the Business Improvement District, or “enacting new rules that”, to quote Anne Burke, former Director of the Economic Development Council “line up with enabling legislation of the world”.
- changing the funding formula, as it did with Local Aid, that cost Westfield $5,000,000 in the last six years, including 2013 when the state had a $900,000,000 surplus.
- decreasing the funding as more communities participate, as is doing with the Community Preservation Act,
- eliminating state funding that create unfunded mandates, such as the Quinn Bill, which now costs Westfield taxpayers $775,000 per year, and represents a significant increase in property taxes.
We need to create jobs and new growth, but lets give all our residents proper notification before Rural Residential zones are changed to Industrial A. I still cannot believe Westfield did not have a notification ordinance for our residents.
Pleasecontact your city councilors and ask them to support a motionI putbefore the council to amend the Zone Change Procedure.
All abutters, residents, taxpayers and property owners within 500 feet from the border directly affected by any proposed zone change, from rural residential, agricultural or Business A and B to Industrial A, shall be notified by mail no less than (14) days before a public hearing is held.
Your Voice Matters.
In the meantime, take someone out to lunch, and don’t forget to tip your waitress.
Dan Allie
City Councilor
