SPRINGFIELD — The Springfield City Council voted 12-0 to use $3 million of the city’s free cash to reduce the tax rate on Nov. 24.
Setting the tax classification, however, involved a great deal more debate and had two councilors voting against any plan that would raise taxes.
Municipalities are required to set a tax rate that allows them to fund their budget, and the levy is the amount of the budget to be raised through taxes. For fiscal year 2026, Springfield’s levy would have been $293.22 million. To keep the annual tax increase manageable, however, the tax advisory committee urged Mayor Domenic Sarno to use $3 million of the city’s $18 million of free cash to offset the tax rate. This, in addition to $4 million that had been previously set aside to reduce taxes, brought the levy to $286.22 million.
A basic tax rate is calculated by dividing the levy by the total taxable real and personal property value in the city — $14.57 billion for FY26 — multiplied by 1,000. If all property were taxed the same with a levy of $286.22 million, it would have produced a tax rate of $19.64 per $1,000 of property value.
However, Springfield employs a tax shift. Residential property accounts for 77% of all taxable land in Springfield, while 23% is commercial, industrial and personal property, which includes business materials, vehicles and equipment. However, the tax shift transfers a portion of the tax burden from residential properties to commercial and industrial ones. So, despite commercial and industrial properties comprising less than a quarter of the city’s base, 40% of the levy in 2025 was paid by those taxpayers. Residential taxpayers covered the other 60%.
This year, the maximum shift of 1.78 resulted in a residential tax of $15.46 per $1,000 of property value and a commercial, industrial and personal tax rate of $34.35 per $1,000 of value. Addressing his colleagues on the council, Councilor Timothy Allen explained that the use of free cash and the tax shift would limit the increase to the average annual tax bill by $244. Without the shift, residential bills would rise by $1,394 on average.
Not everyone was convinced that it was the best possible tax rate for residents. Govan said that tax bills increase every year. “We could do more,” she said. She said she voted against the budget in the spring.
Allen said the budget had been trimmed, with Chief Administrative and Finance Officer Cathy Buono cutting 15 unfilled positions and asking departments to limit their expenses.
However, Councilor Tracye Whitfield was unconvinced. She said she had gone through the budget, and there were more opportunities to reduce it. “We could do a little bit better,” she said. Several people had reached out to her with concerns that they could not afford higher tax bills, she said.
“I’m going to stand up for the little guy,” Whitfield said. “I’m not going to vote for the tax factor.” She urged the council to find a revenue stream that relieves pressure from residents.
Councilor Jose Delgado said, “It’s our job as city councilors to fund the budget. It’s easy to say, ‘I’m not going to vote for this,’ but that’s throwing the rest of us under the bus.” He said the time to lower the cost to taxpayers is during the budget process. Whitfield echoed that, and Councilor Maria Perez also said the budget and taxes need to be top of mind all year long.
City Council President Michael Fenton said it was “irresponsible” to vote against setting the tax classification and take “a political position.” When asked by Fenton, Buono confirmed that the city would need to use between $18 million and $20 million of reserve funding to eliminate any increase in tax bills. If the council did not vote on a tax classification, Fenton said, the state Department of Revenue would set the tax rate. “Great effort” was taken to secure the funds that reduced the tax bills. “We have a responsibility,” he said.
Whitfield told Fenton that she respected his position but disagreed. “I stand on principal,” she said. “It’s not about politics. I am listening to my constituents.”
Govan agreed with Whitfield. She said her constituents tell her that their cost of living and bills are rising. “The only thing not going up is their income,” she said.
Councilor Victor Davila asked about the residential exemption, an option to shift the tax burden within the residential category, from owner-occupied, low value homes to vacation homes, rental properties and high-value homes. Guerra said the exemption would adversely affect many older residents whose homes have appreciated in value over many years. She said higher taxes for rental property owners would translate to higher rents for tenants.
“Springfield is the city of homes,” Davila commented. “We’re not the city of renters.”
Councilor Malo Brown asked if the city could adjust taxes based on age and income. Buono said, “We have to follow state law. We can’t just make up our own” exemptions. Brown responded that he was “not too happy with the state.”
Brown then took issue with the council positions being “part-time” two-year terms and said it does not give them enough time to devote to important issues, such as reviewing the tax options. Delgado acknowledged that most councilors work during the day and cannot attend subcommittee meetings on these issues. Fenton later explained that changing the length of council terms would require a charter amendment, and the city would have to pay full-time salaries to councilors if they were full-time positions.
Allen referred to several locations throughout his district where subdivisions were under construction. “We’re in a position where we need the growth,” he said. Davila predicted that in two or three years, “We’re going to hit the wall.”
Davila asked Comptroller Patrick Burns what would happen if the council did not set the tax classification. Burns said the city would need to estimate the taxes and that, rather than quarterly bills, “The entire increase would be realized in the fourth quarter.”
Ultimately, the council voted 10-2 to approve the tax classification and the related tax rates, with Whitfield and Govan dissenting.
Looking toward the FY27 budget season, which will begin in January, Govan remarked, “We’re going to have to make some hard decisions. We can’t continue going in this direction.”
