The Springfield City Council voted to adopt a residential tax factor of 0.7874 on a roll call that carried the necessary majority, setting the residential tax rate at $15.46 and the commercial/industrial/personal property rate at $34.35. Councilor Allen moved the measure and Councilor Davila seconded it; the council adopted the factor after extended debate over budget priorities and the impact on residents.

The council also approved a related series of transfers intended to blunt this year’s property tax increase, including a $3,000,000 move from certified FY25 free cash into estimated FY26 revenues. Kathy Buono, the city’s chief administrative and financial officer, told the council the free‑cash certification was $18,600,000 and noted that $2,000,000 comes from interest earned on a prior $45,000,000 stabilization investment.

Councilors debating the tax factor split along lines of principle and pragmatism. Councilor Davila, one of the motion’s supporters, said, “I don’t like this at all, but we have to be responsible and raise the money, period.” By contrast, Councilor Whitfield said she would oppose the factor because of its likely effect on low‑income residents and renters, saying she would “vote my heart.” The council president argued that failing to adopt a factor would force the city to issue estimated bills and could concentrate the year’s increase into a single large quarterly bill for taxpayers.

Finance staff and officials gave several figures to justify the approach and to set context. Pat Burns and Kathy Buono said the city has used free cash to mitigate tax bills since 2021 (and once in 2013): fiscal 2022 approximately $2,500,000; fiscal 2023 (including the Eversource settlement) about $10,000,000; fiscal 2024 about $9,000,000; last year $6,000,000; and this year $7,000,000. Buono said earlier investments of $45,000,000 in treasury bills produced roughly $2,000,000 in annual interest that the administration has directed to tax relief.

Several councilors pressed for longer‑range alternatives to recurring free‑cash transfers. Councilor Allen highlighted new‑growth opportunities and pending housing developments as a revenue strategy, and others urged more granular line‑item review in the upcoming budget season. Jessica, an assessor/finance staff member, explained that a residential exemption under Massachusetts law (MGL c.59 §5C) reallocates tax burden within the residential class rather than lowering the levy, and that it can sometimes shift costs to renters or higher‑value homeowners depending on local values.

On the $3,000,000 free‑cash transfer, the clerk called the roll after a motion to 'move the question' to limit further debate; the transfer passed by roll‑call vote. The council’s action on the tax factor required seven votes to pass; the final roll call recorded more than the required votes and the factor was adopted. The council adjourned and said it would reconvene at 7 p.m. for its hearings meeting.

What’s next: Finance staff said they will provide additional line‑item and historical free‑cash data at councilors’ requests, and several councilors signaled they will press for a deeper budget review during the next budget cycle.

Sources: meeting transcript of Springfield City Council; statements by Councilor Allen, Councilor Davila, Councilor Whitfield, Kathy Buono, Pat Burns, Jessica (assessor).