Date: 5/23/2022
CHICOPEE – With tax rates rising, the City Council approved $3 million in tax relief for the fiscal year 2023 (FY23) tax levy during their May 17 meeting.
Mayor John Vieau introduced the appropriation as a part of his mayor’s orders. Motivated by the “trying period” of Chicopee endures since COVID-19’s advent, the tax relief order aims to help citizens combat rises in the FY23 tax rate, according to Vieau.
Funding for the tax relief comes from the city’s free cash account.
“Frankly, we have the wherewithal in discussions with our financial team to help our taxpayers … This $3 million should help moderate some of the increases in the 2023 budget,” said Vieau.
The tax relief distribution leaves $1.9 million left in the city’s free cash account. The mayor expressed that he is “pretty comfortable” the amount will remain as his team works to finalize the FY23 budget.
For the FY22 budget, Vieau also approved $3 million in tax relief as residential taxes increased by 10 percent. City Assessor Victor Anop applauded the mayor and the City Council at the time for their relief efforts.
“We haven’t had the council pitch in $3 million toward the tax rate since 2010. The council in its wisdom with the mayor made a sound decision during the pandemic to reduce the amount the taxpayer would have to pay,” said Anop.
Members of the City Council expressed support for Vieau’s FY23 tax relief plan. Ward 6 City Councilor Derek Dobosz said the appropriation is “welcomed news around the city.” The councilor stressed that tax relief will help residents as they prepare for bill increases.
“I want to thank the mayor, his Chief of Staff Michael Pise and their financial team … I know a lot of people are hurting because of [the coronavirus pandemic] and struggling with their bills,” said Dobosz.
Ward 9 City Councilor Mary-Beth Pniak-Costello cited COVID-19 and rising inflation costs as central reasons that the tax relief is “needed at this time.” She shared that inflation rose the highest amount over a year-to-year basis in 40 years. “I appreciate helping the residents. This is not an easy time to pay the bills. I am glad the city can help,” said Pniak-Costello.
City Councilor At-Large James Tillotson agreed that free cash funds should go toward aiding the residents.
“I am glad that it’s happening, and I hope we can continue to do this each year … The last couple of years have been real tough and I agree whatever we can do to ease the burden, we should do,” said Tillotson.
Ultimately, the City Council approved the tax relief in a unanimous vote.
The council also unanimously approved a $2 million appropriation for capital budgeting after brief discussion. Vieau explained that funds will address needs in each of the departments, including ambulances for the Fire Department and police cruisers for the Police Department.
The City Council will meet again on June 7.