LANESBOROUGH, Mass. — Budget preparations have begun and Town Manager Paul Sieloff is hoping to keep tax increases to 1.5 percent.

 

Sieloff said nearly all department heads have returned budget requests and he has crafted a draft budget. He said he's factored in an expected drop in assessed values and the increased cost of the Mount Greylock Regional School renovation and new-build project. Sieloff is hoping to have a budget that increases taxes by 1.5 percent — a small amount compared to previous years. That 1.5 percent does not include the $200,000 or so for the school project.

 

"This year we are going to have an increase of just under $200,000 for the high school project," Sieloff said. 

 

This last year, the assessed value of the Berkshire Mall dropped significantly with the settlement of appellate tax cases and the loss of two anchor stores in recent years. The Mount Greylock project payments began last year. Those two together led to an 8 percent hike in tax bills.

 

The jump in the increase school payments won't be nearly as high and the mall's value isn't expected to decrease as much this coming year. 

 

"We should have hardly any increase at all in health insurance," Sieloff said. 

 

Health insurance is one of the biggest cost centers in any budget and this year Berkshire Health Group is eliminating the insurance plan town employees were on. Now, the insurance plan will be a deductible plan with lower premiums. The traditional annual health insurance increase is being offset by the difference in prices between the current plan and the less expensive plan. In all, the costs are remaining the same but the plan is of lesser quality.

 

The Finance Committee, however, on Monday suggested Sieloff do more. It wants the town to lower the percentage of the health insurance plan the town pays and put more of the cost burden on employees.

 

"They [unions] have to understand how tight things are and give a little," said Finance Committee Christine Galib. 

 

Sieloff responded by saying the elimination of the plan to keep costs level was "like pulling teeth" and getting through those negotiations is the first step. He said the town in the coming year will be considering changes to the percentages as it enters union negotiations. 

 

Finance Committee member Ray Jones, however, said that should have already been done. He said if union workers, like the teachers' union, don't like the pay and benefits offered in Lanesborough they can take jobs in Pittsfield or other neighboring communities.

 

"Anybody tell these unions that they should be happy to have a job?" Jones said. 

 

Sieloff said health insurance is always on the negotiating table when it comes to collective bargaining but major changes should move at a "reasonable pace."

 

There are a number of steps to make such a change. It means negotiating with all of the unions, bringing on a consultant and lawyers, and then reaching a settlement regarding the savings. The Board of Selectmen may push that issue this year, Sieloff said, but a change wouldn't be made until after July 1 when the fiscal year starts.

 

The leveling off of the health care plan, or very modest increase, gives Sieloff some room to operate within the budget. But the schools have not yet proposed any budgets and Sieloff has little control over those numbers. He said he has been in conversation with school officials and looking for a flat budget from the elementary School and a Mount Greylock budget with 1 percent or less of an increase. 

 

"There is only so much I can do with 30 percent of the budget," Sieloff said.

 

One specific change he does want to make is an increased funding for road repairs. He said the town gets about $230,000 per year from the state's Chapter 90 funding and since he was hired in Lanesborough, he's been looking to supplement that. He had started a budget line for repairs and is now looking to boost it by $15,000 to bring it to $75,000. 

 

"I'd like to get the number to $100,000. We started at zero," Sieloff said.

 

The Finance Committee got its first look at the budget on Monday when it met with the Fire Department, Police Department, and Public Works — the three largest sectors of the town's budget. In March, the group hopes to have at least a precursory meeting with school officials to get a better sense of budget expectations.