Westfield mayor outlines 2026 budget, warns SEA 1 changes will cut future revenue

Mayor Patrick Tam presented the city’s proposed 2026 budget Tuesday and warned that a recent state law interpretation — described in the meeting as “SEA 1” — and changes to how the local income tax (LIT) is administered will produce multi‑year revenue shortfalls. The mayor said the recommended 2026 budget reduces the city tax rate slightly while shifting some funds to reserves and continuing investments in public safety and infrastructure. Why it matters: Tam said the combined effect of state changes will shrink the city’s tax base and force larger decisions later about services funded by property tax and local income tax revenue. Tam told the council the city discovered a county assessment adjustment that reduced the revenue the city expected from reassessed property values. “We found out as late as I think last week that the county had made some misinterpretation… and they had overshot that number by I think the number was $625,000,000 for the entire county,” Tam said. He said the city will absorb the change this year, but warned of larger impacts when adaptations to LIT take effect. Tam presented projections the council requested: the city’s LIT revenue is projected at $34,300,000 in 2026 and about $38,200,000 in 2027, but he said a later change to the LIT mechanism could remove roughly $43,600,000 in revenue in 2028 under the current projections. He also cited estimated lost revenues of about $10.6 million in 2027–28 and $11.3 million in 2029 across affected funds. The recommended 2026 budget totals $80,141,497.13, Tam said. He described priorities that include continued investment in police and fire staffing and benefits, completion of major road and trail projects, and park improvements such as new pickleball courts and permanent restrooms at Freedom Trail Park. Tam said the administration proposes a small tax‑rate reduction for 2026. “We are going to actually reduce the city tax rate, not by a lot,” he said, calling the reduction a continuation of an effort to be “fiscally responsible.” Councilors asked for more detail about public safety funding and the plan to increase firefighter pay. Tam said the budget raises pay and benefits for the fire department to bring long‑term compensation more in line with police staffing and competitiveness in the region; he characterized the change as a three‑year plan with a large initial increase and smaller annual longevity adjustments thereafter. The council received the presentation and will consider final adoption at its Oct. 13 meeting. Tam said the administration will provide follow‑up detail on revenue projections and the SEA 1 assessment changes. Looking ahead, the mayor said the city must prepare for a new annual obligation: under the changes to LIT the council will need to set the city’s LIT rate each year. “There’s no way the city can obviously absorb $43,600,000,” he said, and warned that future decisions will be required to balance services and revenue. The council opened the required public hearing on the 2026 budget at 8:12 p.m. and closed it at 8:47 p.m. before adjourning. The budget is scheduled for final reading on Oct. 13.