NORTH ADAMS, Mass. — The city has a fairly good idea what the increase in its fiscal 2018 budget will be: 1.12 percent, largely driven by health insurance increases, pensions, the school budget and two new positions. 

 

But it doesn't yet know how much revenue will come in this year as it pursues some $2.6 million in liens, taxes and interest outstanding. The hope is to use some of those gains to offset taxes and prepare engineering for projects in anticipation of a debt drop-off in 2020.

 

"The budget is balanced that you received ... it will remain balanced," Mayor Richard Alcombright said at Thursday's Finance Committee meeting, in reviewing what had been covered at a recent City Council meeting. "We will be using several recurring reserve accounts if we have the capacity to do so."

 

Those accounts would likely be the transfer station and the Windsor Mill, which the city is trying to sell. 

 

"You see that we struggle each year to find ways to increase our local receipts. We've been fairly stagnant over time," the mayor said. This year sees a drop in transfer station monies and some $67,000 overall in state aid. "Our state aid is probably equivalent to what we were receiving in 2004-2005. And there's no indication it's going to be any different anytime soon."

 

There's also a 3 percent drop in Community Develop Bock Grant administration funding because of new federal restrictions.  

 

So even though the budget is up only 1.12 percent, the tax rate is expected to rise by about 4 percent, with $16.9 million in real estate and personal property taxes going toward the $39.9 million budget. 

 

The City Council authorized in February the tax title auction of some 200 properties worth about $2.6 million. 

 

A list of delinquent taxpayers posted in the newspaper last week has already prompted activity in the treasurer's office of owners coming in to pay or set up payment options within the 30 days allowed.

 

Officials are expecting to garner between $700,000 and $800,000 of what's left to auction next month. 

 

"People buy the lien, they don't by the title," Alcombright said. "What happens is they become the collector of the debt  at the same rates of interest as the city would charge so it's not a whole lot different."

 

Real property with a building in good condition are most likely to sell because it's worth the collector's efforts. 

 

The city has about a 97 percent collection rate, according to officials, but some of the properties have had outstanding bills or interest dating to the 1980s. Any funds collected would flow into free cash on July 1.

 

"When we come to fund the budget in November and set our tax rate, I would hope to take some of that, whether it's $300,000 or a quarter of a million, and utilize that against this $16.9 [million dollars]," the mayor said. "This money is what was tax money and, in someway shape or form, we'd like to return it. The other thing I think it would help preserve our levy ceiling if we do this."

 

Some of those funds could also be turned to engineering for long-delayed capital improvements. 

 

"We have significant needs," Alcombright said. "I'd like to use $250,000 to the top priorities on our [Capital Improvement Plan]."

 

Specifically, he's looking at leaning retaining walls along West Main Street and the city's deteriorating aqueducts and dams attached to the reservoirs. 

 

The water treatment plant also needs a new computerized operating system because the current one is obsolete and can no longer be serviced; the city's been buying used parts to keep it running. There's a potential to switch the plant to natural gas, which will require an access road off Phelps Avenue. The city also needs to update its voting machines.  

 

About $1.1 million in debt and interest will fall off the books in 2020. If engineering can be done in the next year, the city can use short-term borrowing with the intention to bond in 2020 for those items and the recently purchased Department of Public Works building. 

 

"We're thinking a half-million bucks could support $10 million in borrowing for 20 years," the mayor said. "What will that $10 million fix? That why we need to engineer."