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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Lenox Making Changes to Add Parking Spots

By Breanna SteeleiBerkshires Staff

LENOX, Mass. — The Select Board has voted to move ahead with a two-year trial of downtown parking and traffic changes for a two-year trial. 

This comes after a recent public hearing on the proposal to increase parking by making Church and Franklin Streets one-way, which would add 26 new parking spots. 

Department of Public Works Superintendent William "Billy" Gop presented the proposal in January as a solution to the loss of a major parking lot last year, affecting the busy summertime when people come to visit.

Joseph Nejaime, of Nejaime's Wine Cellars on Main Street, voiced some concerns and asked for a trial period because, he said, he believes a lot of time and effort is going into this.

"Disagree a little bit with you that it's a we're putting a whole lot of effort. We're putting some effort into this. We're not putting a ton of money in this," said board member Ed Lane, adding the costs will be minimal. "The whole intent of it is, and I'll give a superintendent got credit, he came up with this idea. He's picking up a lot of parking places. It isn't only for that gravel parking lot.

"I mean, we hear it all the time. We need more parking in town. So this is an idea that may or may not work. I think it probably will, but it may not. So we're going to paint some lines. There are going to be some signage. 

Since the costs will mainly be new signage and painted lines, member Neal Maxymillian said the proposal will be "pretty inexpensive."

"And in addition to parking for visitors to shops and restaurants, we encounter all the time, virtually daily, roads being blocked by delivery trucks," he said. "I mean, Housatonic frequently has a delivery truck that has nowhere to go, so people are stacked up behind it. When you turn left, going past Kenny's place, there's always a delivery truck on the righthand side, and people are waiting, can't make that turn."

Gop added that there will be spots carved out for delivery truck loading areas and the parking will be paused in the winter since it can be tight for snowplows.

Nejaime said he was worried about the way visitors might have a hard time learning the streets will be one way.

"Changing the traffic patterns, I think sometimes can be worrisome precedent, but we if we give it a shot and see how it goes, I'm a little concerned with people who've come here year after year, and they're used to turning right at Franklin Street, but maybe that would be the only place," he said.

Another person in the audience, who represented the chamber, said it was a great idea.

"There hasn't been any response for or against from my perspective. Where I sit, it seems like it's a natural progression of flow," they said. "I love truck-designated spots, because that is such a bottleneck ...

"I think one of the thing that's on my radar and consciousness, is to always bring some more visibility to Church Street back there, they feel kind of under seen  ...  this is going to kind of help that. And you're putting parking spots directly in front of stores. So I also think that's a positive. So signage is key. You know, we'd be happy to, depending on when this gets in motion, make sure it's in our guidebook and any way we can help."

Someone also said, "I love it and I just wanted to say that."

The board voted to move the motion forward and enforce the pattern change. After they two years, members will evaluate the traffic pattern and decide whether to keep it.

 
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