SPRINGFIELD, Mass. (WWLP) – Inflation persists across the country to start the new year but the city of Springfield is making the most of it. Mayor Domenic Sarno called this approach nothing short of innovative, turning previously lazy city money into a high-yield investment.
The Mayor and his financial team announcing the move, after finalizing it Wednesday night. They will take nearly $45 million from the city’s Stabilization Reserve Account and put into treasury bills. Those, thanks to the reserve’s interest rate hikes to fight inflation, returning at unprecedented rates. The city is locking in at 4.67 percent, that adds up to more than $2 million in just a year.
“We have been working on this for a couple of months. I wanted to make sure it is safe and secure, which it is. And the beauty of this is that I don’t have to use any of the city’s money. We make money off of our money and I’m going to give it back for the residents and business community,” said Mayor Sarno.
The money will go to the Fiscal Year 2024 budget to help offset rising property taxes, another consequence of the current economic turmoil. The mayor said that Springfield is the first city in the state to try this approach to funding tax breaks. He also emphasized the city has plenty of emergency funds, around $65 million, for whatever this year throws our way.
Mayor Sarno states, “We will continue with the fiscal policies that removed us from the brink of bankruptcy to the highest bond ratings in city 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 and we are now able to 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.”