Springfield City Council approves $1.04B budget

Springfield Mayor Domenic Sarno addressed the City Council regarding the fiscal year 2027 budget.
Photo credit: Focus Springfield

SPRINGFIELD — The Springfield City Council voted 10-3 to approve the $1.04 billion fiscal year 2027 budget, the first budget in the city’s history to top $1 billion.

Before approving the budget, however, the process hit a snag when Ward 8 City Councilor Zaida Govan requested the council to postpone the budget vote until they could meet with Mayor Domenic Sarno to discuss using free cash to offset the tax rate.

The mayor first announced the budget proposal on May 1, and since then, the council has conducted public hearings with each of the city’s departments to examine their funding requests. Sarno presented the budget to the council at its May 28 meeting.

The $1.04 billion budget proposal is 5.4% higher than the current FY26 budget. When the budget process began, the city faced a $23.7 million gap. Sarno said, “The FY27 budget was balanced through a combination of targeted spending reductions, vacancy management, strategic use of grant funding and realistic revenue estimates.” Cuts were made where possible, but no layoffs were necessary, and all programs were maintained. Sarno added, “The departments worked really hard, which I commend.”

Sarno pointed out that $862 million of the budget is dedicated to non-discretionary costs. Some of these expenses, including employee health insurance, are assessments through contracts or the state.

The mayor emphasized that he has presented a balanced budget, without using the city’s reserves, for 12 years. He also said Springfield has earned the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for 19 consecutive years. He quoted Standard & Poor, which determines the city’s bond rating, as stating Springfield’s fiscal management is a “positive outlier” among communities in the area.

Sarno said Springfield is only the second municipality in the state to create a targeted tax relief program. There is $3 million in the fund currently and it is designed to help property owners whose income is slightly too high to make them eligible for state regulated tax relief. Sarno also said he lowered the age at which municipal tax abatements are available from 70 to 65 and doubled the amount those people can receive.

At Large City Councilor Brian Santaniello asked about the $20 million gap expected in the FY28 School Department budget. Springfield Public Schools Superintendent Sonia Dinnall told him that the team under Chief Financial Officer Patrick Roach is working on creative revenue sources and cuts that will not directly impact the classroom. Davilla asked how much it would cost to follow through on the School Department’s plan to create a day school program for students with an autism diagnosis who would otherwise be in substantially separate classrooms. Dinnall said it costs about $25,000 to establish a classroom.

Moving forward, At Large City Councilor Jose Delgado asked Chief Administration and Finance Officer Cathy Buono’s department to provide a line-item breakdown to examine salaries and expenses over $100,000.

Govan then motioned to continue the vote until after a discussion on using free cash to offset the tax rate. Free cash is previously allocated money left over at the end of a fiscal year. Sarno responded that the council had the budget for nearly four weeks and could have sat down with him during that time. He said it was “premature” to discuss using free cash because the amount is not official or available for use until certified by the state in October. Buono roughly estimated the free cash account has a balance of $8 million. She said last fiscal year the balance was $18 million, and it was $21 million the year before that.

Govan said she was speaking on behalf of her constituents, specifically those who are not eligible for tax relief but still cannot afford an increase to their property tax bill. She said taxes have increased every year for the past decade, while incomes have not kept pace.

Compared to other communities, many of which have sought Proposition 2 1/2 overrides this year, Sarno said, “I think we’ve done a damn good job. We’re trying to be as lean as possible.”

Sarno responded that using one-time funds for recurring costs will create a “yo-yo effect… The next year, when the well is dry, huge balloon payments.” When the tax rate is kept artificially low by using one-time funding sources, such as grants of free cash, the amount gets baked into the next year’s tax levy. Without more funding, the gap must be covered through taxes or services cuts.

Sarno said, “You tell me which libraries you want to close, what police officers and firefighters you want to lay off, what parks you want to stop, what DPW services you want to go.” Sarno also said the city’s reserves will be needed for FY28, which he expects to be a difficult year fiscally.
While Ward 6 City Councilor Victor Davila appreciated “the good spirit and good intent” behind Govan’s motion, he said he had spoken to many residents who were upset about their tax bills but also wanted services, including road maintenance and the fire service. “I do too,” he said. “They don’t like it, but they understand it.”

At Large City Councilor Kateri Walsh said she was prepared to support the budget because there were no layoffs, and the city’s core services were kept intact.

Sarno remarked that if the city cuts services, residents will have to hire private companies to manage necessities, and those companies will charge more than the tax increase. “They’ll be pennywise and pound foolish,” he said. Govan later clarified that she is not suggesting the city cut services, only to discuss tax relief. Sarno left the door open to consider “sustainable” use of free cash after it is certified.

Only Govan, At Large City Councilor Justin Hurst and City Council President Tracye Whitfield were in favor of the vote postponement. When that failed and a vote was held on whether to approve the budget, the same councilors voted against it.

After the meeting, Whitfield released a statement explaining her decision not to support the city’s operating budget. She thanks the mayor, Buono and the team of employees who design the city’s budget. “I recognize the effort required to manage a city of Springfield’s size and the dedication of the employees who continue to serve our residents every day,” she said.

“I oppose the City of Springfield’s proposed $1.03 billion budget for several reasons. Residents were promised that the revenues generated from MGM would help reduce the burden of property taxes on homeowners and families. Instead, those funds have been redirected to other uses, while taxpayers continue to face increasing costs year after year. Many residents feel that commitment was never fulfilled, and it has contributed to growing frustration and distrust among taxpayers who expected meaningful relief.”

Whitfield went on, “Continued property tax increases are making it harder for residents, homeowners, and families to remain in the city… A budget should reflect the future we are trying to build, and right now this proposal does not go far enough to address affordability and economic stability for Springfield residents.”

Whitfield said she agreed with the mayor that residents want services. “But residents also want quality services, and investing in data, improved policy, innovation and technology is how we get there.” She stated that the city should be using technology to reduce waste and eliminate “long-term contracts and outdated practices.”