These initiatives are possible thanks to the Sarno Administrations prudent, sustainable and sound fiscal management policies that has resulted in the highest bond rating in the city’s history, with a healthy reserve that provides a safety net in case for any unforeseen emergencies and/or economic recession.
Mayor Sarno, working in partnership with City Councilor Tim Allen, will be submitting to the City Council for approval an order to provide a total of $7 million to continue to provide much-needed tax relief for residents by offsetting the tax levy. $5 million will be transferred from the FY23 certified free cash and $2 million will come from the interest that will be generated in less then a year from the innovated financial investment plan which was previously announced by Mayor Sarno, CAFO Plante, and Councilors Allen, Attorney Michael Fenton and Maria Perez using United States Treasury Notes.
Mayor Sarno states, “Thanks to my administrations sound, prudent and sustainable fiscal management policies, which has brought our City 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, we are able to provide continued tax relief for our residents and continue to enhance our neighborhoods with improvements, street paving and sidewalk construction. I want to thank my CAFO TJ Plante and his dedicated finance team, City Councilor Tim Allen, Chair of the Councils Finance Committee, and Treasurer/Collector Stephen Lonergan for their efforts in advancing these important initiatives.”
City Councilor Tim Allen, Chair of the Council’s Finance Committee, stated, “I support the distribution of our free cash as suggested by the administration. We are addressing three critical needs for our residents. First, by providing for tax relief, $5 million from our free cash and another $2 million from the interest from the US Treasury Notes, for a total of $7 million. Second, improving our neighborhoods, streets and roads, and third putting more money into our stabilization reserves to prepare for any economic uncertainty including a recession.”
In addition, Mayor Sarno will submit two orders for the City Council for approval to continue to enhance our neighborhoods and infrastructure. The first order will be to allocate $3 million from the FY23 certified free cash into a neighborhood enhancement fund. This neighborhood enhancement fund will provide citywide neighborhood beautification, improvements and enhancement aspects. The second order will provide the Department of Public Works (DPW) with $2.5 million from the FY23 certified free cash for paving of neighborhood streets and construction of sidewalks.
“With our local allocation of state Chapter 90 Funds being pretty much leveled funded for over a decade, since 2012, my administration is committed to seeing that our public roadways are paved and sidewalks are maintained. I will be submitting an order for the City Council to approve to provide DPW Director Chris Cignoli with $2.5 million so our dedicated DPW crews can pave even more streets in our neighborhoods,” said Mayor Sarno.
Mayor Sarno will also submit an order to transfer the remaining balance of the FY23 certified free cash, $16 million, into the stabilization reserves. This will bring to total amount to over $68 million.
“Maintaining a healthy and stable amount in our stabilization reserves is a testament to our strong fiscal management policies,” said Mayor Sarno. “We must remain cognizant of the ‘ebbs and flow’ of our local and national economy and the threat of a potential recession and any financial hardships it may bring. The City of Springfield was the first community in the Commonwealth to take advantage of this innovative financial investment strategy, and I am proud of the commitment my administration was able to make for our citizens without compromising our obligation to financial excellence. Again, these sound and prudent financial measures that my dedicated and award-winning finance team take, do not mortgage our cities fiscal health and future by investing in unsustainable and unrealistic short-term items that would only compromise and hinder our ability to continue to invest in our neighborhoods and maintain key city services in the future, especially during times of economic uncertainty.”
CAFO TJ Plante stated, “Under Mayor Sarno’s leadership, the City of Springfield has maintained a very healthy and positive bond rating, the highest in the City’s history, and continues to enhance our stabilization reserves which will guard against any potential supply chain issues for goods and services and possible economic recession and uncertainty. Mayor Sarno has never wavered in his commitment to responding to meet all of the quality of life, public health and safety needs for our residents and business community, while also assuring that all vital core services are maintained in our neighborhoods. I am also thrilled that our strategic and innovated investment plan of generating significant revenue from investing in US Treasury Notes is paying off which a significant return on investment of $2 million which will be used to provide continued tax relief for our residents by offsetting the tax levy. All of this, while we continue to invest in our neighborhoods and continue building upon our healthy reserves.”