Will councilors cut budget to lower taxes?

Date: 6/16/2010

June 16, 2010.

By G. Michael Dobbs

Managing Editor

SPRINGFIELD -- Some city councilors might be using a last-moment meeting to attempt to make cuts to Mayor Domenic Sarno's fiscal year 2011 municipal budget -- that is if there is quorum.

As of press time, City Council President Jose Tosado told Reminder Publications the meeting will be posted but only six members of the council have agreed to attend. Seven would be needed for any official business to take place.

Tosado said, "I didn't want to lose an opportunity for the councilors to vote on aspects on the budget."

The meeting, set for June 16 at 5 p.m. at the council chambers at City Hall, is one day before Sarno's budget would automatically become law. The council passed $424,000 in cuts on June 10, but then did not pass the amended budget, a move that Tosado said, "I'm at a loss [to explain]."

Tosado is seeking guidance from the Law Department on the two votes.

The budget cutting is part of a movement by a group of new councilors to either hold the city's tax rate at its present level or to reduce it. At a subcommittee meeting on June 9, Councilor Michael Fenton explained that in order to provide property tax relief, the council would have to cut Sarno's budget.

Fenton explained that while the budget is passed by June 30, the tax rate is set in December. With a budget in place, it's difficult to lower the tax rate.

"The people need a break," Fenton said.

Sarno wrote in a letter to the council on June 8, "I have been asked to come before the City Council on Wednesday June 9, 2010 to provide a budget impact on three tax rate scenarios. These scenarios include a level tax bill for the average single family, a $0.50 reduction to the residential tax rate and a $1 reduction to the residential tax rate. Although relief in the tax rate is important and we must take into consideration managing its growth as part of being a strong fiscal manager, the amounts identified will come at a devastating cost including layoffs, reductions in programs and elimination of services."

Sarno did not attend the meeting, but outlined in his letter how reductions to the tax rate would result in reductions in police, fire and other city personnel and services.

"I am not writing this to be an alarmist, but rather to inform you of the devastating impacts of what seems to be a simple request. The budget as I presented to you in May is balanced and moves on many initiatives that are important to residents while maintaining modest growth. With all that can be accomplished in my budget recommendation, I expect an increase in the average single-family tax bill of less than $1 per week. In fact, this budget currently anticipates a reduction in commercial tax bills in hopes to attract more business to our community," Sarno added.

In response to the outcome of the June 10 meeting, Councilor Keith Wright is proposing a new budget-cutting measure for the June 16 meeting.

"I am calling for a 2.8 percent cut on all discretionary spending, both for personnel and non-personnel expenditures. According to a May 21, 2010, Division of Administration and Finance memo, discretionary spending amounts to $110,275,382. A 2.8 percent cut on this amount would reduce the need for taxes by $3.09 million and thus comes close to the amount required to maintain, rather than raise, the current amount of taxes we need to collect from homeowners and businesses later this fiscal year," Wright wrote in press release last week.

Wright continued, "My goal at last night's City Council budget meeting was to vote for cuts that seemed reasonable, with the hope of being able to support enough cuts to total approximately $3.5 million. That figure came from discussions between the Council and the Sarno Administration regarding what level of budget cuts would be necessary in order to maintain current tax levels and or allow for an actual tax cut. What became apparent, however, is that making these cuts is extremely difficult, with each of us supporting some cuts and not others. After four hours of deliberation, we had only agreed on about $424,000 in cuts, which was well shy of the amount necessary to significantly affect the tax rate.

"At the end of the night, I was unable to support the cuts because they were not distributed throughout city government. However, I was also not willing to support a budget whose effect will be to once again raise taxes. In fact, the Council decided to not support the Mayor's recommended budget. The Council still has about a week to make cuts to the budget. If the Council does nothing more, then the Mayor's budget will go into effect 45 days after he submitted it to the Council on May 3."

Sarno released a statement after the June 10 meeting that read, "I extend my thanks and appreciation to all of the City Department heads, employees and union members for their participation during last night's City Council budget vote. I recognize that the meeting was long, but this is the necessary process that must take place to ensure the city has the most fiscally prudent budget.

"I am pleased that the City Council did not make any burdensome cuts in public safety, education and basic city services. My administration will continue to move forward on a number of initiatives including a new police and firefighter academy as well as the distribution of blue barrels for single stream recycling throughout the city.

"I have learned that some members of the City Council are questioning the legitimacy of last evening's budget votes and that another meeting may be held next Wednesday. I have instructed the City's Law Department to provide a legal opinion as soon as practically possible and to consult with the Massachusetts Department of Revenue to ensure that the city of Springfield is in compliance with all legalities surrounding the Fiscal Year 2011 Budget."