Westfield presents multi‑year SB1 revenue hit; administration proposes 6% cuts and hiring freeze while declining immediate tax hikes

Westfield officials and municipal advisers told the City Council on Monday that changes under SB1/SCA1 could reduce the city’s operating revenue by millions of dollars over the next three years, and laid out options officials would consider in the 2027 budget cycle.

Oscar, the city’s municipal adviser from Bondri Consulting, said the city’s conservative revenue projection assumes continued assessed‑value growth but warned the removal of levy appeals will substantially limit operating‑levy increases beginning in 2027. He presented estimated net operational losses of about $2.8 million in 2026, $7.1 million in 2027 and $12.6 million in 2028 after some offset from reduced circuit‑breaker losses.

Why it matters: city staff said those are operational dollars — funding everyday services and staffing — not capital projects. The advisers noted new recurring operating costs tied to planned fire stations and police staffing will raise the city’s baseline spending needs just as revenue growth slows.

Mayor Mary Willis and staff emphasized they will not immediately raise property taxes and that the administration plans to “hunker down” for two to three years. Willis said the administration will seek a 6% reduction in the proposed budget, institute a hiring freeze outside public safety and add to the rainy‑day fund to blunt potential shocks. As Willis put it during the session, “we’re not going to overreact. We’re not raising taxes.”

Advisers described specific revenue‑replacement scenarios if local taxing authority changes as currently drafted. Oscar explained that maintaining the current level of certified distributions would require roughly a 0.73% local income‑tax rate under the new formula; to fully replace projected property‑tax losses the analysis showed a rate near 0.91% in some scenarios. He also noted a legal floor: existing local income‑tax debt would require a minimum continuation of about 0.12% to avoid defaulting on pledged payments.

Staff framed these figures as options, not recommendations. The session was educational: consultants repeatedly said no formal council action was required now and that the city must wait for the legislature’s final decisions before making binding choices. Oscar warned the council to plan as if the worst‑case cliff could occur, even while acknowledging legislators may delay or modify the law.

Council members asked for more granular, parcel‑level data to see which 1%, 2% and 3% parcel classes are most affected and requested comparative figures with neighboring cities. Staff committed to follow up with updated analyses and to include any revisions to the forecast after the legislature acts.

Next steps: no vote or ordinance was introduced at the session. City staff said they will return with updated budget materials and more detailed parcel and comparative data ahead of the 2027 budget decisions.