Town council sets 2012 tax rates

Date: 12/20/2011

Dec. 21, 2011

By Debbie Gardner

Assistant Editor

WEST SPRINGFIELD — The Town Council approved a 2012 tax rate at its Dec. 12 meeting that increased the amount both residential and business customers will pay, with businesses once again receiving the larger share of the increase.

By a vote of 7-1, with Councilor Robert Mancini opposed and Councilor Lida Powell absent, the council approved a shift of 1.56, which will translate into an increase of $68.25, or 1.9 percent on the average residential tax bill, and $834.33, or 2.7 percent on the average commercial/industrial/residential tax bill. The new tax rates were set at $17.25 residential and $35.64 commercial/industrial per thousand valuations, respectively.

“One of our main goals is to be as fair as possible to both the residents and commercial and businesses property owners, that’s where we find ourselves every year,” At large Town Councilor Brian Griffin told Reminder Publications, “We take no pride in setting the tax rate.”

Griffin said that, given the events of the past year, the general consensus among the councilors was that they should ease the burden on residents to a small degree.

He said that there was discussion among the councilors about going with a 1.53 shift, which would have benefited business owners at the expense of residents, and also moving the rate to a 1.568 shift, which would have benefited residents at the expense of residents.

“Clearly, that is a dangerous situation to get yourself into,” Griffin said of the wide swings that were discussed. “Next year [the council] would have no room at all [to adjust the rate].”

Cognizant of that fact, he said the council chose to compromise on the 1.56 tax shift.

District 1 Town Councilor Angus Rushlow said he had advocated to keep the tax rate stable for one more year “because businesses and residents are all having the same problems paying bills.”

He noted that he was aware of “27 or 28 businesses that have left town,” primarily because of the tax burden.

Remo Pizzichemi, president of the West of the River Chamber of Commerce and owner of the Hampton Inn on Riverdale Street, said he was disappointed by the council’s decision.

“We’re now allowed to tread water again rather than stimulate any kind of economic development for new employers to come to our town, rather than losing them as we have been,” Pizzichemi said.

He spoke to easing the tax burden on West Springfield business owners at the council’s Nov. 21 public hearing on the tax rate, presenting councilors with a packet showing numerous empty storefronts and business properties in town.

West Springfield has one of the highest residential and commercial/business tax rates in comparison with surrounding communities, excluding Springfield. The tax rate in Agawam, which has a similar population and business/ industrial base, is $14.35 residential and $28.63 business/commercial. The tax rate in Westfield, which has a both larger population and business/industrial base, is $16.14 residential and $30.38 commercial/industrial.

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Town councilors also approved a supplemental appropriation to transfer $487,000 from the town’s free cash account to pay for expenses resulting from the June 1 tornado. Griffin said the council chose to use free cash rather than money in the town’s stabilization fund to pay the expense, because use of the stabilization found would have resulted in the expenditure being added to the tax levy. According to Griffin, West Springfield has $4.7 million in its free cash account.

Debbie Gardner can be reached by email at debbieg@thereminder.com