Pittsfield Council Refers FY24 Budget Items to Committee of WholeBy Brittany Polito, iBerkshires Staff
03:46PM / Wednesday, May 10, 2023 | |
PITTSFIELD, Mass. — The fiscal 2024 budget season has been kicked off with nine orders from Mayor Linda Tyer referred to the Committee of the Whole.
The proposed operating budget for FY24 is $205,634,497 — almost $17,000,000 or 8.9 percent higher than last year's budget of $188,822,018.
This breaks down into $109,350,895 for city operations, $78,088,016 for the School Department, and $18,195,586 for the enterprise which includes the Department of Public Utilities water treatment, sewer, and wastewater.
On May 17, there will be the first public hearing on the 5-Year Capital Improvement Plan, the budget, and nine departments. There will also be budget hearings on May 24, May 30, and June 5.
Orders related to the FY24 budget include:
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The 5-year Capital Improvement Plan for the fiscal years 2024-2028
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To raise and appropriate $205,634,497 to fund the city's operating budget
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To appropriate $1 million from certified free cash to reduce the tax rate
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To borrow an aggregate sum not exceeding $10,648,000.00 for General Fund capital expenditures
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To borrow an aggregate sum not exceeding $14,445,000.00 for Enterprise Fund capital expenditures
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To transfer and appropriate $280,000 from the Public Works Stabilization Fund to the Department of Public Services
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To authorize the use and expenditure of the city's current revolving funds pursuant to MGL, Chapter 44, Section 53E 1/2 for fiscal 2024
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To appropriate $220,500.00 for parking-related expenditures pursuant to MGL, Chapter 40, Sections 21A-22C for fiscal 2024
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Two orders establishing the water and sewer rates for FY24
The proposed FY24 rate increases for water and sewer will increase the average two-bathroom household with scheduled service by $12.87 a month and $9.33 for metered service.
For the first toilet per year is proposed to increase from $271.36 to $298.52 for water and from $303.04 to $378.80 for sewer. For additional toilets, the rate increase would bring it from $135.72 to $149.32 for water and from $151.56 to $189.48 for sewer.
Metered utilities per 100 cubic feet would see an increase from $1.96 to $2.16 for water and from $3.60 to $4.50 for sewer.
Several factors were attributed to the rate increase including inflated prices in water and wastewater chemicals, sludge handling, and utilities.
Depleted retained earnings in water and sewer enterprise accounts were also cited as contributing factors to the rate increase.
"Over the past few years, the retained earnings in both water and sewer enterprise accounts have been steadily decreasing," the order reads.
"This decline is a result of increased operational expenses and necessary infrastructure investments to maintain and improve the water and sewer systems. The continued reliance on retained earnings to cover these expenses is not sustainable in the long run, and it is essential to replenish these accounts through increased revenue from the proposed rate adjustments.
The request is also said to be in line with a request from the state Department of Revenue to match expenses without reliance on retained earnings. This aims to better position the city to address long-term financial obligations, maintain service levels, and invest in necessary infrastructure improvements.
A comparative analysis with other communities found that Pittsfield's rates are among the lowest in the region coming in at $21.76 lower than other gateway cities, $50.35 lower than other towns in Berkshire County, and $33.43 lower than other municipalities in the same congressional district.
A couple of community members spoke about the rate increase during public comment.
Craig Gaetani, who has taken out papers to run for mayor, pointed out that the increase for one toilet would cost more than $150 more per year and said the cost will be rising in the next two decades.
"The rates are coming and will be highest in years 2030, 2032, 2033," he said. "Think about that."
Daniel Miraglia asked when the city will get to a point where there is a decrease. He said the city needs to think of better avenues for funds to offset the rates whether it is free cash or another source.
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