PITTSFIELD, Mass. — Mayor Linda Tyer is calling for a 4.2 percent increase to the city's budget.

 

The order calls for a $151,293,951 operating budget, which represents an increase of $6,070,410. The mayor says that will cost the average single-family homeowner an additional $230.47 per year.

 

The capital budget calls for the borrowing of $11,948,000 for capital expenses, which is about $1.7 million than last year. 

 

Recognizing the city's financial limitations recently presented by the Auditor Thomas Scanlon, who says the city's levy ceiling is now lower than the levy limit restricting the amount the city will be able to tax, Tyer says the city's budget makes investments in priorities and positions the city to grow the tax base in the future.

 

"The first step in developing the FY17 budget strategy was to understand what our fiscal challenges are. A decade of declining property values and inadequate growth are the primary factors that effect the city's levy limit," Tyer said. 

 

"However, even in a down cycle we must plan for the future by making smart, long-term investments to be better positioned for increasing property values, inspiring new growth and creating a fiscal safety net for the city."

 

The levy situation left the city with room to raise taxes by about $6 million. If the fiscal 2017 budget proposal goes untouched by the City Council, that capacity will be at $2.4 million.

 

Among the six members of the City Council who received the budget Wednesday afternoon, sending the orders to the council as a whole for a series of hearings, at least two councilors showed an appetite for cutting expenses. 

 

Councilor at Large Kathleen Amuso motioned to cut the operating budget by $3.2 million and send it back to the mayor, a move made just moments after the council was given copies of the proposal. She was joined by Ward 7 Councilor Anthony Simonelli in supporting that but the other councilors voted against such a cut so early in the process. 

 

"I think there are a couple of departments we can make some changes that'll hurt but is doable," Amuso said. "I would really like the mayor to go back to the department directors and find a way to cut $3.2 million."

 

The City Council has little control over line items and Amuso wanted to send the administration back to the drawing board to come back with a proposal more in line with her desires. 

 

"I really want them to do the work and I think they can," Amuso said,

 

Amuso tried to do the same with the capital budget, calling for a $2 million cut there and sending it back to the administration. Again, she was joined by only Simonelli and the motion was defeated.

 

Both Council Vice President John Krol and Councilor at Large Peter White spoke against making such cuts and said having the council review the budgets with department heads over a series of meeting was the proper way to make changes if desired.

 

"This is the mayor's budget. That is the starting point," Krol said.

 

Council President Peter Marchetti added that if the budget is sent back to the mayor at this point, the entire process outlined in the charter would have to start over. The fiscal year starts on July 1 and the council needs the budget for at least seven days before debating can start. Additionally, the public hearing that was already scheduled would have to be rescheduled. 

 

The City Council will hold five budget hearings, each reviewing different departments, starting on June 13. 

 

Tyer's budget is mostly driven by an $1.8 million increase for the School Department, $1.3 million for health insurance increases, and $936,208 for Police Department personnel and equipment — a vow she made at a recent press conference to develop specialized units in the department with additional staff to combat an uptick in gun-related incidents. 

 

"The FY17 budget is fundamental in ensuring that our city has the services it needs to raise property values, to keep educational standards at a premium, and to make public safety priority No. 1," Tyer said.

 

"As we move forward beyond the FY17 budget, I am committed to undertaking a number of strategies that I believe will further position us for cost containment, financial planning, increased efficiencies, and consolidations. We must be better stewards of our finite resources."

 

Additional drives include $329,049 increase for the health insurance mitigation fund; $521,833 increases in retirement contributions; and $489,249 increase in long-term debt principal payments. From there, Tyer said the budget calls for "modest" increases to some budget lines while decreases to eight other lines. 

 

"This budget places a high premium on investments in core services. Subsequently, we assessed the programs and services in relation to their capacity to foster increased real estate values and inspire new growth through private investment," Tyer wrote in a summary letter to the council.

 

Tyer is also asking to use $2 million in free cash to offset the tax rate despite the auditor's recommendation to put the money into reserves. Scanlon advised the city against using free cash to offset the tax rate because it is a "non-reoccurring" funding source and shouldn't be used for operations. Further, he said the city needs to build reserves for the future and free cash would better be used in stabilization accounts. 

 

Instead, the mayor is hoping to get the state Legislature to release some $1.6 million the state has restricted for the city's stabilization reserves. 

 

"As we have learned the city's reserves are too low. It was a difficult decision to utilize free cash to offset the tax rate; however, stabilization reserves will be funding in the amount of $1,720,000 and is comprised of an appropriation from balances remaining in the overlay account and by transferring Chapter 28 restricted stabilization funds," Tyer wrote.

 

The $11.9 million capital budget calls for a number of projects including $250,000 for a site analysis and design for a new police station — a project begun a few years ago with a feasibility study and a part of Tyer's focus on public safety. The biggest project is a $2.6 million runway project reconstruction at the Pittsfield Municipal Airport, a project which will likely be nearly entirely reimbursed by the FAA as is typical with airport projects.

 

The capital budget calls for some $2.5 million in street improvements. $1 million in stormwater improvements; $775,000 for new equipment in the Fire Department; and $378,000 for equipment in the Police Department.

 

Overall, the capital budget as presented is close to 20 percent higher than last year. However, any FAA reimbursement is not factored in, which is likely more than 90 percent of the $2.6 million being expended.

 

Coupled with the budget, water and sewer rates are asked to be raised. Those two operate on enterprise accounts funded by the users. The water rates are proposed to increase by 2 percent while the sewer rate is expected to rise by 6.7 percent. 

 

"Both increases are driven by the increase in debt service from recently completed capital projects and the retirement board fees associated with enterprise employees," wrote Commissioner of Public Utilities Bruce Collingwood. 

 

A total of $570,000 for various improvements at schools, many of which were discussed during the School Budget process.

 

The mayor is also proposing putting $100,000 into the other post-employment benefits trust account.