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Date: 12/5/2023
SPRINGFIELD — “What am I supposed to do? I’m too old to rob a bank!”
Diminutive in stature but not in spirit, 82-year old Lorraine Crump stood boldly at the podium in the City Council chambers on Nov. 28, becoming a figurehead of the resistance to Mayor Domenic Sarno’s proposed property tax increase for fiscal year 2024.
One in a parade of homeowners that opposed the hike, many of them seniors on fixed incomes, the longtime McKnight neighborhood resident recounted how she lives alone with her lights off and heat set low to reduce costs. Even still, she said she is on the verge of losing the home in which she has lived since 1973.
“That’s not the way a person is supposed to live when we see so many people who are rich right here in Springfield. They can afford these taxes, we can’t,” she declared, later adding, “You’re not getting my house. I’m not moving out. If you come to take it, I’m staying. You’re going to have to pick me up and carry me with every piece of furniture you take out of my house. I’m not giving it up. I struggled too hard, and I want to keep it. I don’t have much longer to live. Don’t kill me yet.”
The testimony, along with that of several others, was described by multiple councilors as “heartbreaking” or “heart-wrenching” and swayed the council into delaying its vote on the tax rate to allow Councilor Tim Allen, chair of the Finance and Tax Factor subcommittees, the opportunity to negotiate with Mayor Domenic Sarno on a new plan that would reduce the additional burden placed on residents.
Sarno’s initial plan called for the use of $8 million in funding to offset taxes — $5 million from Eversource’s 2022 $41 million payment resulting from a protracted tax dispute, $2 million from returns on the city’s investment in federal Treasury notes, and $1 million from free cash. Even with this offset the proposal would have resulted in an average tax increase of $175 for single family homeowners.
The following evening, Allen returned to the council with a compromise that included an additional $1 million from free cash. With the additional use of free cash, the estimated average tax increase for single family homeowners will be $161. Allen said he told the mayor while he was initially prepared to support his proposed tax plan, the testimony before the council had moved him to reconsider.
“I tried as hard as I could to get $2 million or more, but that was what I got — $1 million,” he said, adding that while the result wasn’t what he had hoped, the mayor and his staff engaged in productive dialogue. “I did appreciate the spirit of cooperation in the meeting. The mayor said, ‘We’re not the federal government, we can work together,’ and we did today.”
Not all were satisfied with the result, however. Councilor Zaida Govan repeatedly objected and criticized the mayor’s use of free cash on other projects and investments and opting not to utilize additional stabilization funding to provide relief to an issue she said has been festering since she joined the council. Councilor Tracye Whitfield, who was present on Nobv. 28 but unable to attend the Nov. 29 meeting, also criticized the plan.
“The 11 people who testified last night told us. They pleaded with us,” Govan said.
While Crump’s voice was one of defiance and even anger, residents’ testimonies ran the emotional gamut.
Erica Cruz advocated for retired senior residents like her mother, a retired educator living in the city’s Pine Point neighborhood, arguing the tax increase would represent a significant burden. Cruz said while her mother’s home is paid off, rising property taxes have made making ends meet a struggle and implored the city to seek alternatives to another tax increase.
“Just like my mother, retired seniors who live on a fixed income rely on savings, pensions and Social Security to cover their expenses,” she said in a tearful testimony. “As residents of Springfield, the retired seniors are struggling to keep afloat with these increased property taxes. Increased property taxes would force them to make difficult choices such as cutting back on essential needs such as medications and nutrition or even putting them at risk of homelessness.”
Cruz also proposed the creation of a committee designed specifically to study the impact of the property tax burden on the city’s senior population.
Rhonda Hall-Reynolds, also a Pine Point resident and current educator, bluntly told the council families couldn’t afford larger tax bills.
“We need relief, we don’t need more burdens,” she said.
Esther Hudson, a retired resident who has lived in her Old Hill neighborhood home for more than 30 years, detailed a frustrating conversation with the Assessors’ Office regarding the tax hikes during which she said she was told higher property values in the neighborhood were driving the increase.
“I told them, ‘I’d like you to come to my residence and stand at my front door when I look across the street and see two homes that have been boarded up for years,’” she said, adding she has incurred additional expenses to allay detrimental conditions created by those properties. “You cannot convince me that looking at these homes right across the street from me is increasing the value of my home.”
Pernese Morris, a 23-year homeowner in the city’s Upper Hill neighborhood, put it to the council, “Look at everybody’s income before you raise the taxes because it’s not fair to certain people that’s living on a certain budget.”
Kimberly Caldwell, a Liberty Heights homeowner, said while she has experienced tax increases, she has not seen the benefits of those increases.
“If you can pull $1 million, pull a little bit more and for this year, just say, ‘We’re going to leave the taxes alone for the city of Springfield,’” she said.
Retired Board of Assessors Chair Richard Allen heavily criticized the city’s dramatic levy increase, noting the $14.5 million hike for FY24 represented the largest in the city’s history, comparing it to the previous fiscal year’s $5.2 million. In the last 40 years, he added, only three times has the levy increase been in double figures. He suggested the only two ways to provide relief at that point would be to cut the budget or convince the mayor to release additional free cash.
He added, citing earlier testimony, “I think the demographics of Springfield indicate that the present is challenging, and I fear that the future is really troubling and we’re heading for some very strained financial times.”
While residents and council members alike advocated for a larger free cash investment to mitigate tax bill increases, Patrick Greenhalgh, chair of the Board of Assessors, noted in his Nov. 28 presentation that the city had recently dipped into free cash significantly to offset property tax hikes. The city has used a total of $21 million in free cash to this end over the past several years, he said, allocating $1 million cash in FY21, $2.5 million in FY22 and $10 million in FY23. The average savings over those years, according to Greenhalgh, was $323.
Greenhalgh added there were “unique circumstances” that led to the usage of significant amount of free cash, which he noted is a one-time funding source.
“This will dry up,” he said.
The tax rates are decreasing, but the continued upward trend in home values is driving higher taxation. Single family home values increased by 10.8%. The value of condominiums in the city increased by 16% while two- and three-family property values went up by 14.7% and 22.8%, respectively. “The market has remained very strong,” Greenhalgh said.
Additionally, the City Council approved a budget with multiple increases in 2024, including a $43.9 million hike in school department spending; $5.5 million in pensions, representing a 9.7% increase; $1.7 million in additional employee benefit costs, up 5.5% over the prior fiscal year; and salary and wage increases through various union settlements.
In his testimony, Wilfredo Lopez, a resident of the Boston Road neighborhood and local realtor, said the increase in property values was a double-edged sword of sorts. While the growth illustrates that Springfield can be an attractive option for homebuyers, it has priced out many local homeowners. “I don’t think what we’re doing today is going to provide any relief to the taxpayers, no matter what we do, and I feel like we’re repeating this every year,” he said.
Juan Latorre, who ran for an at-large seat on the City Council in the 2023 election, reiterated his hope to see the city implement a tax work-off program for seniors. He also warned that Springfield was getting close to the maximum 1.75 residential factor and once reached, the city would no longer be able to shift additional tax burden to other property and away from residential taxpayers. Additionally, he voiced the need to generate and diversify revenue sources, estimating year-to-year budget increases of 4-8% and expressed concerns for seniors and young families looking to purchase a home alike.
Greenhalgh also pointed out the city offers personal exemptions to various populations. For residents 65 and older, a $1,000 tax abatement is available provided they meet certain asset and income restrictions. An additional $125 exemption is offered to those over 70 whose total assets do not exceed $40,000. Blind residents can take advantage of a $437.50 exemption and veterans with a 10% or greater disability rating, Gold Star parents, and others can receive anywhere between a $400 and full exemption. There is also an exemption from the Community Preservation Act surcharge for those who meet income restrictions based on age and household size. More information on these programs is available through the Assessors’ Office.
Additionally, he encouraged residents to take advantage of the state’s Circuit Breaker tax credit, available to seniors 65 and older as of Dec. 31 of the tax year. The 2023 maximum Circuit Breaker credit is $2,590, according to the Massachusetts Department of Revenue. Greenhalgh told the council that data from the DOR reflected that 1,630 qualified Springfield residents participated in that program in 2021 with an average refund of $909.
Implementation of a senior tax work-off program, which the City Council passed in 2019, was slowed by the coronavirus pandemic and staffing issues in the Department of Elder Affairs, but it is now expected to begin in FY25.
Prior to the vote to approve the tax rate, Councilor Justin Hurst, who recently challenged Sarno for mayor, said while the outcome was likely not what they sought, he hoped those who testified understood that in coming forward with their experiences and concerns, they “actually moved the needle” and made an impact that would benefit residents. He also commended Allen for his efforts and urged him to appreciate the influence he has, sharing his perception that not every councilor would be as welcome at the negotiating table.
“I think you also need to understand the impact you’re able to have on the residents of Springfield who need you,” he said. “There are only so many folks that can do what you did. That’s just the reality.”
Councilor Victor Davilla said he was “torn,” attempting to balance his feelings after the testimony from the night before and his obligation to the rest of the city to fund the approved budget.
Recognizing that tax increases are “painful” and, along with inflation, have had “a tremendous burden particularly among the people who have the least in our city,” Councilor Michael Fenton defended the city’s record in attempting to ease residents’ tax burden.
“Each and every one of us are cognizant of that and I just want to acknowledge that there isn’t a single member here who wants to increase taxes. Sometimes this is a necessary outcome to continue to perform the services that we all like to rely on and at budget time advocate for in our respective districts and across our city,” Fenton said.
He pointed to the fact that the city doubled the senior tax abatement to $1,000 last year while reducing the age restriction from 70 to 65. He also referenced Gov. Maura Healey’s tax cut package, passed in October, which included provisions aimed at mitigating rising tax bills such as doubling the Circuit Breaker tax credit. He also reiterated efforts to bring the senior tax work-off program online. Those combined, he said, represent $4,400 in potential tax relief for seniors and could eliminate property tax liabilities for some altogether. The average single family tax bill in Springfield in FY23 was $3,667.
He also pointed out the $10 million tax supplement provided by the administration and the council in FY23 was the largest of its kind in the city’s history and the mayor’s initial proposal this year was the second highest. He said this relief, and other smaller amounts in previous years, were offered to residents in spite of the DOR telling the city the practice was “problematic.”
“We’ve done a lot. That’s not a summary of what’s happened in the last 10 years, that’s a summary of what’s happened in the last 12 months,” he said. “Our taxes have not increased at the same rate of other cities and towns, they have not increased at consistent with inflation. We remain the city that has the lowest average single family tax bill of any city in the commonwealth other than North Adams. If residents are struggling to meet their property tax bills, we’re putting forward programs to help them afford it. It is a fallacy to state that it would be cheaper to move to a surrounding community because there isn’t a surrounding city within 50 miles of the city of Springfield that has a lower average bill than we do.”