Pittsfield Sets Fiscal 2015 Property Tax Rates
 Connie Boyle told the City Council that the Berkshire Hills County Club has seen its taxes increase by 400 percent in the last decade. |
The council set the tax rates for fiscal 2015 at $18.06 per $1,000 for residential properties and $36.62 per $1,000 of commercial.
The rates raise the taxes on the average single-family home by $131.05 per year.
The rate divides up the needed $73.5 million from taxes to balance the $148 million budget.
The city is once again going with a split tax rate — charging businesses more than residential properties — but has moved slightly closer to a level rate than last year.
Last year, property owners were paying 63.93 percent of the overall tax levy and this year they are being asked to pay 64.19 percent with a shift of 1.66 toward the commercial side.
"The average single family tax bill is $3,179.73. Last year the average single-family tax bill was $3,048.69, which is an increase of $131.05," Board of Assessors Chairwoman Paula King said.
King outlined the change in the taxes. The budget increase and, as a result, the needed revenue from taxes grew by $3.1 million. Total property values dropped by .38 percent or about $12 million.
Ward 6 Councilor John Krol twice tried to move the commercial and residential tax rates closer together. Krol eventually wants the city to eliminate the split rate and instead charge one property rate.
His first motion sought to charge residential properties to $18.18 per $1,000 and businesses to $36.19 per $1,000. That translated to increasing residential taxes by an average of $152.17 per year and commercial $402.91 per year. That was denied in a 7-4 vote.
Krol tried again— moving closer to the administration's proposal — with rates of $18.11 for residential properties and commercials at $36.42. That proposal would translate to $139.85 per year for residential and $519.19 for commercial. That also failed in an 6-5 vote.
Krol's opinion is that the city isn't business friendly enough when it comes to taxes.
Connie Boyle, president of Berkshire Hills Country Club, agrees. He told the City Council at Thursday's hearing that the golf course and resort venue will see its taxes rise by $4,000.
"We don't have children that go to school. We don't have garbage pickup," he said. "That has a tremendous impact on businesses."
Over the last decade, Berkshires Hills taxes have risen by 400 percent. Meanwhile, the golf course pays for permits, inspections and licenses, all which cost money as well. Boyle made similar statement during last year's hearing.
"It makes doing business in Pittsfield very difficult," Boyle said.
Boyle said he is willing to pay more on his own residential property if it helps to attract more businesses. But resident Robert O'Connor disagreed.
O'Connor is on a fixed income and he told the councilors that he is considering moving out of town because he can't afford the residential prices. He questioned the City Council's priorities in setting the budget — citing the recently completed airport renovation and the upcoming Taconic High School project.
"I am totally disgusted with this council," O'Connor said. "Every year, we keep raising taxes."
Hearing both residents and commercial property owners say similar things, Ward 2 Councilor Kevin Morandi voted against the spending plan that was approved in June.
"These are tough economic times and there are a lot of people struggling out there. I hate to see people forced out of their homes and businesses are not coming here," Morandi said on Thursday.
Morandi and Ward 1 Councilor Lisa Tully were the only two to vote in June against fiscal 2015 budget that calls for a $4.1 million increase in spending. Morandi says he is worried about the impact building a new school will have on the budget once that is approved.
 Board of Assessors Chairwoman Paula King outlined the accounting that led to the tax rate options. |
Tully said the city has the 7th highest commercial rate and at the same time, residents are struggling. She said she hopes that eventually the city will craft a budget that calls for no increases in taxes.
Krol, however, said the councilors' nays were"disingenuous" because neither one offered any dramatic cuts or increases in revenues.
Council Vice President Christopher Connell said he isn't calling for cuts but rather looking for ways to raise revenues — either through fines or fees.
"I think that is the better solution right now. Let's really attack the line items on the revenue side," he said, volunteering to sit on a subcommittee to look into revenues.
Ward 3 Councilor Nicholas Caccamo encouraged residents to spend their money with businesses inside the city limits to feed economic development and raise city revenues.
"The more dollars you spend inside city limits is economic development," Caccamo said.
Nonetheless, after Krol's two attempts to move the burden more toward the residential side, Councilor at Large Churchill Cotton motioned to keep the burden the same as last year. That would have resulted in residential rates of $17.98 for residential and $36.89 for commercial.
That motion, too, was denied and the City Council approved the proposed shift and residential factor. The proposed factor passed 8-3.
For Ward 7 Councilor Anthony Simonelli, the tax classification hearing is his "least favorite" meeting of the year. The hearing sets the rates to pay for a budget already approved. While he did vote in favor of this year's budget, he gave a shot over the bow to department heads about the next.
"Obviously there are some fixed costs where there is nothing you can do about it. ... The residents and the commercial are experiencing tough times," he said. "We knew what the final figures were tonight when we voted in June. But what needs to be said is that next June, I would like to certainly ask, caution warn, department heads and the School Committee to please take a close look at their budgets when they come next year."
Thursday's hearing also weighed using additional income sources to offset taxes. Resident and former School Committee member Terry Kinnas suggested using the $5 million or so left in the General Electric Economic Development Fund.
Connell suggested using more of the city's $4.7 million in certified free cash. During the budget process, the City Council approved using $2 million of last year's free cash to offset property taxes.
"I don't advise using any more free cash," said Director of Finance Susan Carmel. "Our free cash is at the level we were at in 2003."
The free cash acts as reserves and there is already about $1 million worth of requests expected in the next few months, she said. In all, the reserves are just 3.2 percent of the total budget.
Councilor at Large Barry Clairmont agreed with Carmel and expressed concern with even using the $2 million. Clairmont said since the city is borrowing millions of dollars for the upcoming school project, those reserves need to be healthy to get the best bond rating.
"We have to stop using this amount of free cash to offset the tax rate," he said. "We will pay dearly in the long run if we don't keep the bond rating where it is now."
Tags: property taxes, tax classification, tax rate,
