Pittsfield Hospitality and Tourism Receipts Rebounding, Cannabis Dropping
PITTSFIELD, Mass. — Hospitality and tourism industries have continued to rebound from the COVID-19 pandemic, Finance Director Matthew Kerwood reported on Tuesday.
During a first-quarter review of the fiscal year 2023 finances, it was revealed that first-quarter collections for hotel/motel local receipts are about $317,000, which is nearly 42 percent of the estimated FY23 collection of $760,000.
Around this time in FY22, the city had collected some $217,000 for that type of local receipt and in FY21, about $182,000.
The first quarter collection for meals is about $254,000, which represents around 33 percent of the estimated FY23 collection of about $776,000.
These numbers have also climbed over the past couple of fiscal years, with about $228,000 collected around this time in FY22 and about $159,000 in FY21.
"From a hotel standpoint and a meal standpoint, we have rebounded from the pandemic," Kerwood said. "Collections are up."
Tax collections, which local receipts are a part of, and state aid are the city's largest sources of revenue.
About 26 percent of preliminary commitments for property and personal property taxes have been collected for FY23: $21.3 million of the $83.5 million for property and $3.3 million of nearly $13 million for personal property.
Around $2.7 million of the nearly $13 million expectation for local receipts has been collected.
Kerwood gave a cautionary note on the cannabis receipts, as the first quarter collection is roughly $71,000 less than it was last year. The city expects to collect $800,000 into the general fund in FY23 and has collected a little over $351,000 with about $176,000 going into the general fund.
The cannabis taxes get split three ways: 50 percent goes to the general fund, 25 percent goes to the general stabilization account, and 25 percent goes to the public works stabilization account.
"This is a trend that we have to watch, see what happens with this revenue source now that the market has expanded and there are more facilities, not only located in the city of Pittsfield, than there were before," he said. "But there are also other competing factors in that New York has legalized, Vermont has legalized."
"So it will be interesting to see how this number continues to go given those circumstances."
The largest local receipt is motor vehicle excise, which the city estimates will bring in over $5.5 million in the fiscal year. About $436,000, or 7 percent of that has been collected in the first quarter because the majority of that revenue is collected in the third quarter.
As of June 30, the city’s stabilization account totals $4.9 million and the public works stabilization account totals $731,336.
The free cash certification as of November 2021 was $5.1 million. In the last year, there has been a $162,400 appropriation for an airport easement project and a million-dollar appropriation to reduce the FY23 tax rate, making the unappropriated balance about $3.9 million.
Kerwood noted that the unemployment insurance expense account is at 56 percent of the $150,000 appropriation for FY23. $83,357 of the $83,936 is attributed to the school department.
When asked about this expense, he said that it would be a better question for school personnel but anecdotally said it may be because there are people leaving the school department.
Councilor At Large Earl Persip pointed out that there are almost 300 openings in the school department.
There is also a high expense on the benefits conversation account that was appropriated $500,000. About $292,000, or 58 percent of that has been spent due to veteran police and fire retirements.
The water enterprise account has seen about $1.4 million in revenues so far, or 28 percent of the FY23 expectation, and has about $1.6 million in expenses, which is 30 percent of the fiscal year budget.
In the first quarter, the sewer enterprise account has seen $1.9 million in revenue, which is 17 percent of the FY23 expectation, and $2.1 million in expenses, or 19 percent of the fiscal year budget. This account includes sewer and wastewater.
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