Mayor asks council to use $3 million in free cash for tax relief; council approves appropriation
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Summary
Mayor requested the council appropriate $3 million from undesignated free cash to reduce the FY2026 tax levy; council approved the request as part of ongoing tax‑relief practice.
The Chicopee mayor asked the City Council on June 3 to appropriate $3,000,000 from the city’s undesignated free cash to reduce the 2026 fiscal‑year tax levy. The council received and approved the mayor’s order.
The mayor said the budget is up roughly 6% and that rising costs—collective bargaining and health‑care expenses—have driven the increase. The $3 million appropriation is the fifth consecutive year the city has used free cash for tax relief, the mayor said, and city financial staff meet frequently to manage the fiscal picture.
Councilors said the appropriation continues an established practice to offset tax-rate impacts. The motion to receive and pass the mayor’s order carried on a roll call; the council recorded unanimous support on the motion to appropriate the funds.
The appropriation reduces the levy‑supported tax requirement for FY2026 by applying one‑time free cash rather than a permanent tax rate change. No additional conditions were attached at the meeting; the action will be reflected in the city’s FY2026 tax rate calculation.