Springfield Mayor Domenic Sarno shared more details on Thursday about a tax relief plan for city residents.
Sarno had pledged the action in response to a Springfield City Council resolution to eliminate trash pickup fees to help with property tax sticker shock.
Mayor Sarno said yesterday that the city will invest about 45-million dollars into federal Treasury notes and take advantage of significantly-higher interest rates.
Mayor Sarno states, “Since taking office, one of my administration main focus and priorities continues to be practicing sound fiscal management policies that have brought us back from the brink of bankruptcy to having the highest bond rating in the city’s history, with a healthy reserve that prepares us for any unforeseen emergencies. This is a safe and prudent plan that we have researched and been working on for some time. With interest rates as high as they are, now is the time to take advantage and advance this beneficial tax relief initiative for our residents and business community. Springfield is believed to be the first community in the Commonwealth to utilize this unique and innovated approach.”
City Councilor Attorney Michael Fenton said, “This is a shrewd, inventive, and unprecedented way to provide tax relief without spending a nickel of city reserves. I suspect this announcement will attract attention from across Massachusetts, the region, and the country. Over the last decade Springfield has emerged from bankruptcy to leading the region in fiscal prudence. Today, we reap the literal profits from over a decade of sound financial management.”
The goal is for some two million dollars to go into the Fiscal Year 2024 budget.
(Photo by DANIEL LEAL/AFP via Getty Images)