A new budget proposed to operate the largest city in western Massachusetts would put more cops on the streets and more cash into the city’s savings account. It also reflects a rebounding Springfield housing market after the foreclosure crisis of nearly a decade ago.
Springfield Mayor Domenic Sarno is recommending a nearly $629 million budget for the fiscal year that begins July 1st.
Sarno said his spending plan, which now goes to the City Council, calls for no layoffs, maintains basic city services, fully-funds all labor contracts, hires 17 firefighters and pays for a new police academy class of 50 – all while increasing total spending by less than 2 percent.
" We feel this is a good sound budget and it really shows the fiscal stability, discipline, and prudent decision-making we've done," said Sarno.
This is the 10th budget under Sarno’s administration. The mayor announced the filing of the budget at a City Hall news conference Tuesday afternoon where he was joined by members of his finance team and several city department and agency heads.
The proposed budget is balanced without tapping the city’s cash reserves and it proposes to increase the $40 million “rainy day fund” by $5 million.
" This budget is balanced for the third year in a row without any use of reserves," Sarno said, adding that it was " unheard of."
With the addition of 50 police officers, the number of employees budgeted for in the Springfield Police Department is 581, the most in decades.
For the second year in a row, the city budget would commit $250,000 to fund an early childhood education program that is a joint venture of the Springfield Public Schools and three other organizations.
While the budget does not call for any new initiatives, Sarno says it keeps services intact such as curbside trash removal and recycling collections, and keeps popular neighborhood-based programs.
" All my branch libraries stay open, pools will be open for the summer as will spray ( pads), the advance of the police department's quality of life flex squad has been loved by our neighborhoods," said Sarno.
The budget directs $58 million into the city’s pension fund, a nearly 15 percent increase over this year’s contribution. It is an effort to reduce the city’s unfunded pension liability, which ranks as the highest in the state, and was a source of tension between the administration and the City Council in last year’s budget deliberations.
" We have continued an aggressive pace to address ( the pension liability), but that comes from the bottom line of the budget, as some councilors need to be aware, and takes away from services," Sarno said.
For revenue, Springfield remains heavily dependent on payments from the state. 60 percent of the budget is made up from state sources, including unrestricted local aid that is projected to increase by 3.9 percent.
The budget also assumes a $7 million increase in property tax revenue. Springfield Chief Administration and Finance Officer T.J. Plante said major economic development projects, including the MGM casino under construction and a $75 million new factory to build subway cars, has revived the housing market, allowing the city to raise the full amount under the state’s 2.5 percent tax cap law plus $3 million new growth.
" The fact that we can get the value out of that is fantastic," said Plante. "We are able to see the fruits of all our labor come together and it seems to be working."
Also built into the budget is an $8 million payment due from MGM as part of its casino development agreement with the city.
The City Council will now have almost seven weeks to review the proposed budget and vote before the start of the next fiscal year. City Councilor Tom Ashe said it is enough time.
"We will have good conversations I am sure," said Ashe. " The fact that we've gotten ( the budget) this far in advance and money is going into the rainy day fund, which is always important, is going to be a good start."
Under the city charter, the City Council can cut but cannot add to the spending recommended by the mayor.
