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Barrett Asking Council for Increase in Rooms TaxStaff reports
iBerkshires
03:14PM / Friday, August 21, 2009
NORTH ADAMS, Mass. — The City Council on Tuesday will take up a recommendation by Mayor John Barrett III on increasing the local hotel/motel tax from 4 percent to 6 percent.
In his communication to the City Council, the mayor said the 2 percent local rooms tax would generate $50,000 for the city this fiscal year.
The state recently passed a measure allowing municipalities to impose up to 2 percent in rooms taxes to make up for massive cuts in state aid as well as another three-quarters of a percent on restaurant meals. The city lost about $2.5 million in state aid so far over the past two fiscal years. Pittsfield is also considering a rooms tax increase for later this year that will bring in about $135,000.
Barrett has recommended delaying the imposition of the .75 percent local option until next year, given that "it would be an inconvenience as well as an additional cost" to businesses that just had to convert to the new state sales tax of 6.25 percent, effective Aug. 1.
Also on the agenda are easements from North Adams Hospitality (Holiday Inn), G&L River Street LLC (North Adams Tire) and River Street Realty Trust (Michael Deep) in preparation for the $3.2 million Downtown Streetscape Project. Of the 29 temporary easements required, all but the three listed above have signed off. According to the mayor's communication, the inn and North Adams Tire had agreed to donate the land but did not submit the paperwork; Deep refused to sign off. Each will be given a couple hundred in damages to allow the city permanent easement to work on public projects, such as lights and sidewalks.
The streetscape project was announced several years ago by U.S. Sen. Edward Kennedy, who secured $2.2 million in federal funding; another $1 million in federal funds was acquired for new traffic lights.
City Councilor Clark H. Billings has officially submitted his resignation from the council, effective Aug. 29. In what may be his last council act, Billings has asked the council to look at instituting sewer-user fees, something he's been calling for for years.
Finally, the mayor has asked for approval to borrow $680,000 toward a feasibility study on the cost of additions to Greylock and Sullivan elementary schools. The state School Building Authority will pay 80 percent of the cost of the feasibility study and reimburse the city for its costs once the study is completed.
The final tally for the city will be $136,000 but it must borrow all the money upfront.
The city's three elementary schools have to accommodate pupils in sixth and seventh grade with the closing of Conte Middle School. |
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