Pittsfield Local Receipts Trending High, Cannabis Revenues Dropping

By Brittany PolitoiBerkshires Staff
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PITTSFIELD, Mass. — Halfway through fiscal 2023, the city's collected more than 50 percent of its projected receipts and seems on track to take in more than expected.

"I think we are tracking in a way where local receipts will yet again exceed the actuals, will exceed our estimates," Finance Director Matthew Kerwood reported to the Finance subcommittee on Thursday, adding that this is one of the ways that free cash is generated.

Some $6,604,208 was collected by the end of the second quarter on Dec. 31, 51.4 percent of the estimated total of $12,845,725.  Free cash is now at more than $17 million, up from around $5.3 million in fiscal 2021.

These receipts, which include meals and hotel/motel taxes, plummeted in fiscal 2021 due to the pandemic but have been rebounding since.  

A couple of years ago, cannabis tax dollars surpassed expectations due to a boom in new dispensaries. But market saturation is bringing prices down and revenue numbers are now dropping.

Of the estimated $800,000 in cannabis tax, $332,491 was collected by the end of the second quarter, representing 41.6 percent.  

"When you're the only game in town you can charge $300, I'm just making that up, but when there are four players in town, the price point is going to fluctuate," Kerwood said.

There are about seven dispensaries in the city including Temescal Wellness, Berkshire Roots and Bloom Brothers.

Kerwood said he may have to make adjustments downward in that local receipt if the trend continues to happen.

Twenty-five percent of cannabis revenue goes into the public works stabilization account that was created in 2019, 25 percent goes to the stabilization fund, and 50 percent goes to the general fund.


The stabilization fund currently totals $5,148,695, the public works stabilization fund $255,670, and there is $17,130,565 in free cash certification as of Dec. 15.

During the meeting, the subcommittee voted against transferring and appropriating $2 million from certified free cash to the general stabilization account and transferring and appropriating $2 million from certified free cash to the Other Post-Employment Benefits trust account.

They did vote in favor of transferring $2 million in free cash to the public works stabilization account.

Council President Peter Marchetti suggested putting the additional $2 million into public works over the general stabilization account because it will still make more money in investment and can be used to purchase new equipment or do additional road work.

Kerwood also pointed out expenses to watch, which included a 123.2 percent spending of the $800,000 budget for winter maintenance and overtime. 

"This is as of Dec. 31, so anything associated with the Christmas storm would not be part of this expense," he explained.

"But between the two accounts, it's $800,000, there [was a] $3,150 budget adjustment. As of Dec. 31, what had been spent was $486,687. There was another $503,204 encumbered as of Dec. 31, which if you take what has been actually been spent in the encumbrance, it is at 123 percent."

Under state law, this is the only account that can be deficit spent.


Tags: fiscal 2023,   pittsfield_budget,   

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BRTA Hears From New ITS System to Help With Rides

By Breanna SteeleiBerkshires Staff

PITTSFIELD, Mass. — The Berkshire Regional Transit Authority heard from an "intelligent transportation system" company on what it can bring to the bus service.

Spare Labs presented to the board last week, showcasing its platform for demand-response services, fixed-route information, service planning, and rider engagement. 

Spare representatives said the company has been working with transit authorities across the state and hope to "de-risk" the service with software changes.

"We know how tough it is to make a software change. It's no small feat. We've done it quite a few times in the states, so you're now working off of a blank piece of paper. We understand what your partners have done, positives and negatives, so you're building with that in mind," said senior growth manager Joshua Bethel.

Bethel emphasized a hands-on implementation where they will work with BRTA staff to prepare data, test the system, train dispatchers, drivers, and administrators, and help with rider communications.

"One example of how we've de-risked is the MBTA, one of the largest paratransit services [The Ride] in North America. In their switch to Spare, they saw immediate results. So our kind of implementation process is extremely white glove," he said. "We like to get in the trenches. We like to be with you on site, opening up a lot of times. We're here 4 a.m. when the days open, working with you. So look at this as an active partnership." 

Bethel gave an example on how the system helped the Massachusetts Bay Transit Authority with a training approach.

"Internally, every stakeholder will have some type of training, whether it's a dispatcher, a driver, admins. You all will have some level of training and different permissions in the system. Because of that approach, MBTA saw immediate great results," he said. "Their on-time performance pre-spare was 88 percent. Within 24 hours of launch, they were up to 95 percent, and they are continuing to grow."

Spare described several ways riders could interact with the system — a BRTA-branded smartphone app, online booking through a web portal, phone booking with a human dispatcher, text-based interactions, and an AI phone agent for routine requests, such as booking, canceling, or checking the status of a trip.

"One of the biggest differences that riders will see is everything will truly be at their fingertips, and we have multiple ways we're going to stay up to date based on what's available to them, we obviously will have a router app on the smartphone, but we offer availabilities for people who don't have that," Bethel said. "So, for someone who doesn't have a smartphone but they have access to a computer, we have a webbooker. For someone who doesn't have access to a computer but they need to call in, we also will be teaming what you have from a dispatcher standpoint. We also offer an AI call taker who can answer frequently asked questions, and when wait time is too hard, too high, automatically clicks in and says, 'Hey, this is the final wait time. You can call, you can cancel.' So effectively, with the technology, you can reduce wait times as you grow."

Their platform could also account for rider accessibility needs when matching trips to vehicles and could flag cases where a rider's booking did not reflect their usual needs. It can also have caregivers and others book on a rider's behalf if need be for medical appointments and more.

Earlier in the meeting, BRTA Deputy Manager Benjamin Hansen spoke on the ridership numbers citing inaccurate data on how many are riding because of the outdated system. Their system will be able to know in real time when a passenger boards and when one gets off. 

Spare also described tools intended to support route and demand-response planning, including; reporting by route, stop, time of day, and rider; integrations with passenger counting hardware and other systems; real-time vehicle and trip information; traffic-aware routing, which could use Google traffic data; and alerts for unusual patterns or apparent data discrepancies.

They said data could be brought into the platform from existing hardware and configured into reports for BRTA. The Spare team would work with BRTA during implementation to decide which data to import and which measures the agency needs. 

Many of the questions posed by the board were about the selling of data and how rider data is protected. Spare representatives said the company does not sell rider data and that BRTA would control the permissions as the data would belong to BRTA. As for a government agency asking for the data, they were unsure and said they would have to verify the rules for sharing information, but added they are compliant with the Americans With Disabilities Act and federal and state law. 

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