THE CITY OF SPRINGFIELD, MASSACHUSETTS

MAYOR DOMENIC J. SARNO

HOME OF THE BASKETBALL HALL OF FAME

STATE OF THE CITY ADDRESS

FEBRUARY 7, 2011

Good Morning!

As the 54th Mayor of the City of Springfield, it is my distinct honor and pleasure to
report to you and all our citizens on the “State of the City”.

I am very pleased to report that the state of our beloved City of Springfield is
strong and is steadily improving.

This is no small accomplishment. Just a few years ago, we lost our fiscal
autonomy to the Commonwealth of Massachusetts. But, as a result of making
tough choices and with persistent hard work, we have regained our financial
independence. We have moved forward decisively and we have generated
substantial momentum in every dimension of city government.

And, we did this in the face of the worst global economy since the great
depression.

I want to thank the City Council, the School Committee, our legislative delegation,
our department heads, our city employees, and our terrific citizens and business
community for stepping up to the plate to sustain the City of Springfield in her
hour of need.

City of Springfield • 36 Court Street • Springfield, MA 01103-1687 • (413) 787-6100

Springfield’s recovery from the brink is a tribute to all of you.

While there were some harrowing moments along the way, I am not surprised at
the outcome. Our successful recovery is a reflection of the deep and abiding
commitment and the “can do” spirit of our leadership team, as well as the
understanding and the cooperation of our citizens and business community.

It is critically important that we continue to boldly move forward in this spirit.

There are many challenges ahead of us. We need to capitalize on our momentum
and build on the progress already achieved. We need to leverage our resources to
meet the expectations of our citizens. And, we need to be guided by the exciting
vision of a fully revitalized City of Springfield as we continue the hard work of
municipal stewardship.

Let me summarize our accomplishments and challenges in several key areas:

FINANCIAL MATTERS

The City of Springfield, like municipalities all across the country, has been dealing
with steadily declining revenues. But, believe me, Springfield will continue to
exercise strong fiscal discipline, and we will successfully weather any storm……
even an occasional snowstorm.

Over the years, we have relied on the Commonwealth of Massachusetts to provide

roughly 60% of our revenue through state aid. The remaining 40% is comprised of
property tax revenue, locally generated receipts and reserves. The City has worked
hard to maximize our local revenues through aggressive tax collection and a
detailed review of all departmental revenue on a regular basis.

I have recently written to the state legislature and Governor, asking that the current
state aid distribution formula be reviewed to ensure that Springfield gets its fair
share of state resources. We cannot continue to place an unequal share of the
burden on the hard working taxpayers of our City. I look forward to working hard
and in collaboration with our legislative delegation in Boston, on your behalf, to
achieve the fiscal equity that we deserve.

In the meantime, the City has adopted a series of relief measures offered by the
state through its municipal partnership legislation. This includes joining the Group
2.
Insurance Commission (GIC) for health insurance, adopting the local-option meals
tax, extending the pension schedule, consolidating city and school finance
directors, and enhancing procurement rules. We have also been exploring other
options, including the expansion of our payment in lieu of tax agreements with
local tax-exempt entities and our aggressive collection of outstanding excise taxes.

On the spending side, Springfield has been aggressive in gaining efficiencies and
concentrating on priority programs. Strong management is really the only practical
way to meet the spending requirements of our essential services. The hard fact is
that the cost of these services is increasing at a rate that outpaces our revenue
growth.

At this point, the services that we provide are limited primarily to those related to
education, public works, and public health and safety. Our General Fund budget
totals $533.4 million for Fiscal Year 2011. Only about $125 million or roughly
25% is considered “discretionary”.

As we are all well aware, Springfield has had a tumultuous history in managing its
finances. Since gaining back local control a year and a half ago, we have worked
hard to maintain consistent fiscal discipline. Our new Chief Administrative and
Financial Officer, Lee Erdman, along with our talented finance team, has provided
an experienced and steady voice that has been of great assistance.

And, all our efforts have paid off. I am proud to say that we have earned two
consecutive upgrades in our bond rating to ”A” status, a certification of positive
free cash, and we are projecting a healthy reserve balance at the end of this year.

During these difficult financial times, one of my primary goals is to provide

responsible property tax relief to homeowners and businesses, and to spur
confidence and economic development.

As a result of the City’s effective fiscal management policies, I am pleased that we

were able to adopt a property tax rate for Fiscal Year 2011 that is fair to residents
and businesses, and that is pro-homeowner and pro-jobs.

In fact, Fiscal Year 2011 marked the first time since 1983 that there was a lower
total tax levy than in the previous year, a reduction of $4.3 million.

3.
Another key element in securing Springfield’s financial turn-around was the
repayment of the $52 million no-interest loan from the state. I am pleased to report
that the City has met this loan obligation in full, and that no additional money is
owed to the state.

In preparing our plans for the Fiscal Year 2012 budget, we have already identified
a significant financing gap, based on our assumptions of spending and revenue.

We will continue to prudently allocate the resources available to us, in order to

maintain essential services. We will also cautiously utilize our reserves during this
“rainy” time to help offset some otherwise devastating cuts.

PUBLIC SAFETY AND QUALITY OF LIFE

Public safety and quality of life issues continue to be among my Administration’s

top priorities. As I have said many times, we can speak about many grandiose
development ideas for the City of Springfield. But, if our residents do not feel safe
in their community, we will not be able to capitalize on our tremendous
development potential.

I am pleased to report that since 2008, my Administration has moved to add 74

police officers to our streets to enhance public safety.

This includes 11 existing Police Department positions that were “civilianized”, 5

officers who were reinstated after earlier layoffs in 2003, a police academy class of
27 officers that graduated in Fall, 2009, and another 31 recruits that started their
training this past December and that will hit the streets this Spring.

Under the leadership of Police Commissioner William Fitchet, we have initiated a

“Quality of Life Ordinance Flex Squad” and reorganized the “Street Crime Task
Force”. My Administration has also appointed Springfield’s very first citywide
anti-youth violence coordinator, as well as a point person for dealing with day-to-
day quality of life issues.

But, the bottom line is always the numbers. In 2010, as compared with the average
of the previous four years, larcenies were down 18%, stolen cars were down 23%,
and robberies were down 6%. We are currently targeting breaking and entering as

4.
a high priority. And while even one murder is too many, our solve rate for murder
is nearly 80%.

While we have seen some improvements, the City can and must do more. The acts
of violence and murders that are affecting so many of our City’s youth has got to
stop. The gang against gang and drug related killings are senseless and we must
continue to strive to eliminate this violence.

This situation continues to put us on the defensive in moving our City forward.

Once again, I ask all of our citizens to be vigilant at all times and to report crimes
and suspicious activity to the Police Department. We need everybody to be a
watchdog. Crime fighting is a shared responsibility. Together, we will change the
overall outlook of our City to a MORE POSITIVE one.

We have just concluded a very busy year at the Springfield Fire Department.
Under the leadership of Fire Commissioner Gary Cassanelli, the Department
responded to over 15,000 emergency calls, including over 1,300 fire incidents and
7,400 medical incidents. This number of calls represents a 25% increase over the
past 5 years, a truly remarkable expansion in public services.

A few weeks ago, we announced the largest recruiting class of firefighters to be

hired since 2002. We were successful in securing state stimulus funds that
permitted an additional 8 recruits to be added to a scheduled class of 15, bringing
the total complement of new firefighters to 23.

The Department was also able to purchase 82 digital, portable, interoperable and
water resistant radios for frontline firefighters through a Federal Assistance to
Firefighters Grant.

This past October, we opened a new state-of-the-art fire station on White Street.
And, we witnessed the end of an era with the closing of the antiquated Oakland
Street station.

Let me assure you, my Administration remains committed to providing our public

safety officials and our first responders with all the tools they need to keep all of
our residents safe.

5.
I will continue to be relentless on issues of crime and public safety so that all our
residents feel safe in this community.

EDUCATION

We all know that, when it comes to educating our children, nothing is more
important than the dynamic relationship between the teacher and the student in the
classroom. Building open, honest, and trusting relationships to support this proven
correlation is critical to academic success.

Under Superintendent Alan Ingram’s leadership, the Springfield Public Schools are
moving forward on a number of initiatives in this vein.

The School Department recently announced an expanded home-visit program.

This project builds on the great work undertaken over the last several years by our
schools in partnership with the Pioneer Valley Project.

This is but one component of the Springfield Collaboration for Change, a five-year
initiative spearheaded by the Springfield Public Schools, the Springfield Education
Association and community leaders. This partnership was launched last year when
Springfield was awarded a $1.25 million grant from the NEA Foundation.

While we recognize that there remains much room for improvement in our schools,
we are pleased that the performance of our students on the Massachusetts
Comprehensive Assessment System, or “MCAS”, has improved for every segment
of the student population.

Since 2008, gains were made in all student sub-groups including special education;
limited English proficiency; low income; and in all racial categories.

As a whole, student performance increased nearly three points on the English

Language Arts test, slightly more than two points in math, and nearly four points in
science and technology.

In addition, the number of students reaching proficiency in English increased three

percentage points, and two percentage points in science and technology. However,
there is still room for improvement. Our graduation rate is too low… Our drop-
out rate is too high...

6.
Though we have achieved incremental improvements, it is essential that we
continue to focus on raising academic achievement, making schools safer, building
a strong coalition of community support, and creating a culture of high
expectations.

ECONOMIC DEVELOPMENT

After public safety and education, my Administration’s top priority is job creation.
Our unemployment rate of over 13% is just plain unacceptable.

Now that the recession is abating to a degree, we must redouble our efforts to
create new and good paying jobs for Springfield residents. That’s right, it’s all
about jobs, jobs, and more jobs……..

In the economic development arena, our Development Services Department is

delivering projects that improve our quality of life and increase our economic
vitality. Springfield’s entrepreneurial approach and strong working relationship
with multiple partners, has given us access to resources that yield substantial
tangible results.

Our economic development program is focused on nurturing three strategic assets:

• First, our job base. Springfield’s thriving business community is home to

Mass Mutual Financial Group which employs thousands of people
worldwide. Baystate Medical Center is the City’s largest employer. Big Y
Foods, Smith & Wesson, Merriam-Webster, Performance Food Group and
Peter Pan Bus Lines all call Springfield home. And last, but certainly not
least, we are the headquarters of hundreds of small businesses.

• Second, our neighborhoods. Springfield’s 17 vibrant and diverse

neighborhoods are the very heart and soul of our community. Our Victorian
mansions, impressive architecture, and affordable neighborhoods have
earned Springfield the title “City of Homes.” We need to live up to this
name.

• Third, our downtown. Springfield’s central business district is the home of

hundreds of business and thousands of jobs. It is the heart of civic life with

7.
 restaurants, cultural institutions, places of entertainment, and the seat of
government.

The City has celebrated a number of significant economic development

accomplishments under my Administration:

• We saved 103 good paying jobs at Titeflex under an innovative property tax
agreement.

• We reached agreements that will add 225 new manufacturing jobs at Smith
& Wesson. The company also plans to make a $63 million investment in the
expansion of its plant and equipment.

• We celebrated as the State Street Corridor came to fruition with the

dedication of $17 million in public improvements and a groundbreaking for
the $110 million back-up state data center at the former Technical High
School. DevelopSpringfield has been advancing several redevelopment
initiatives in the Corridor and has launched a new $1 million State and Main
Street small business renovation program. Special thanks to Congressman
Neal for his visionary leadership in the comprehensive State Street initiative.
He continues to be our most valuable partner and supporter.

• We oversaw $425 million plus in planning, design, and construction projects

including Baystate Medical Center’s “hospital of the future”; two new
medical buildings on Wason Avenue; the new Pharmacy School at Western
New England College, and the new Richard B. Flynn Campus Union at
Springfield College.

• We completed the $11 million redevelopment of the former Federal

Building at 1550 Main Street for School Department offices and Baystate
Medical Center.

• We created our own economic development catalyst called “Develop

Springfield”, chaired by MassMutual’s Nick Fyntrilakis, to develop strategic
sites and small businesses.

8.
• We assigned responsibility for the redevelopment of the long vacant Union
Station to the Springfield Redevelopment Authority in an effort to jump-start
this important regional transportation project.

• We created a Business Development and Retention position to enhance our

business recruitment and stabilization efforts.

• We conducted developer selection for the former Zanetti School, the former
School Department Headquarters building, and a 6.6 acre industrial site
located on Bay and Tapley Streets.

• We designated American International College as the preferred developer of

the former Mason Square Fire Station and one of the Indian Motocycle
buildings.

• We collaborated with Western Massachusetts Electric Company to advance

the development two “solar energy fields”, the first to be located at the
former Cottage Street landfill.

• We continue with the $5.5 million redevelopment and beautification of south

Main Street.

• We are preparing to undertake a $3.6 million renovation redevelopment and

beautification of Main Street in the North End.

• We were awarded $1.2 million in Neighborhood Stabilization Program

funding for reinvestment in housing in selected neighborhoods.

• We completed the renovation of the new UMass Design Center in Court

Square and conducted eight neighborhood-based design exercises engaging
more than 600 citizens in the discussion.

• We demolished several key blighted properties, including the former Central

Street area nursing home.

• We are in the midst of launching the City’s first branding campaign with
over $200,000 in city and private funding.

9.
 • And finally, in the very near future we will be announcing a permitting
system that will help reorganize our inspectional services functions to
deliver streamlined permitting and inspection services.

In the coming year, my Administration looks forward to working with our

economic development partners to build on our progress as the national and local
economy emerges from the recession.

I believe that we are poised for a period of sustained growth that will ultimately
transform our City, create jobs, revitalize our neighborhoods, and expand our tax
base.

PARKS AND FACILITIES

Springfield continues to have some of the finest and best maintained parks and
public facilities in the country.

Under the leadership of Patrick Sullivan, our Department of Parks, Buildings and
Recreation Management is committed to maintaining our public facilities in a
manner that will sustain a safe, healthy and productive learning, working, and
recreation environment.

Substantial progress was accomplished in 2010:

• We broke ground for new $114 million Putnam Vocational/Technical High

School.

• We began design and site assembly for the $32 million renovation and
expansion of Forest Park Middle School.

• We submitted requests to the Massachusetts School Building Authority for

funding for school repairs so that our teachers can teach and our students
can learn in the best facilities possible.

• We completed over $5 million in repairs and renovations to schools,

libraries, fire stations, the police headquarters and municipal buildings
throughout the City.

• We set in motion a process for relocating the Mason Square Library to its
10.
 former location in the heart of this community.

• And finally Pynchon Park, a unique vertical park located between Chestnut
and Dwight Streets near the Quadrangle, was renovated and re-opened after
having been closed for thirty-five years.

In 2011, we need to continue these efforts to keep our physical facilities in top
condition for now and in the future.

HEALTH AND HUMAN SERVICES

Our Department of Health and Human Services has a long history of helping
residents in need. Under the leadership of its director, Helen Caulton-Harris, we
continued to deliver on that promise in 2010:

• Two public health action groups were convened to work on food and
nutrition strategies for our residents. Both groups include leadership from
community based organizations, our hospitals, department heads and
members of the community-at-large.

• Health Care for the Homeless, in collaboration with Mercy Medical Center,
opened a new five suite medical facility. This facility will have a significant
impact on the quality of healthcare for our homeless population and decrease
visits to emergency rooms and urgent care facilities. In addition, it will
provide support services that will allow these individuals to break the cycle
of homelessness.

• Finally, we created a teen pregnancy initiative which is a broad based

coalition of medical, educational and community groups and youth to
realistically address this critically important issue.

CULTURE, THE ARTS AND COMMUNITY PRIDE

We are all grateful that Springfield continues to thrive as the cultural center of
Western Massachusetts. Our world-class museums, the Springfield Symphony,
City Stage, and our historic Springfield Armory rival attractions in cities twice our
size.

11.
Our Basketball Hall of Fame is a one-of-a-kind interactive museum that features
legends of the game’s past, present and future. The spectacular Dr. Seuss National
Memorial Sculpture Garden is a magical place that brings out the inner child in all
who visit. And, we cannot forget our beloved Springfield Falcons and Springfield
Armor too.

The brand new Lyman & Merrie Wood Museum of Springfield History has opened
to widespread acclaim. I encourage all our citizens to visit this impressive facility
as a way of gaining a full appreciation of our City’s magnificent history.

Even at the neighborhood level, we have arts resources of every imaginable

description, including ethnic music and dance, theater, and visual arts. In
downtown, we all enjoyed the highly successful “Cityblock Concert Series” at
Stearns Square and the “Hoop City Jazz Festival” in Court Square that attracted
thousands of people. And of course, the many award winning Spirit of Springfield
events from Bright Nights to the Forth of July Fireworks too.

I hope that in 2011 and beyond, we will achieve greater involvement by our
citizens in the whole range cultural, arts, and entertainment opportunities we offer.
We have spectacular resources. Let’s take advantage of them to be uplifted,
enlightened, and inspired.

CONCLUSION

Ladies and gentlemen…… In his recent “State of the Union” address, President
Barack Obama spoke passionately of “winning the future” of the United States.

Today, I challenge all of us to rally together to win Springfield’s future.

I am proud of all that we have accomplished together. And, I hope you are too.

But, my Administration will not rest on its laurels. There is more work to be done.

So, I ask all of you to continue to be steadfast in your commitment to this great
City; enthusiastic in your efforts to secure her future; and resolute in overcoming
the challenges that we will encounter on our journey together.

12.
To the residents of Springfield, I thank you for the opportunity to serve as your
Mayor. I look forward to helping this City accomplish great things now and in the
future.

Together, we are going to Make it Happen! Happy 375th Birthday Springfield.

And always remember and never forget… We are one, we are strong, and we are
Springfield.

May God bless you…. And, may God bless the City of Springfield!

Thank you very much!

13.