Pittsfield Hospitality and Tourism Receipts Rebounding, Cannabis Dropping

By Brittany PolitoiBerkshires Staff
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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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BRTA Looks to Another Year of Fare Free

By Breanna SteeleiBerkshires Staff

PITTSFIELD, Mass. — The BRTA is expecting another year of fare free rides.

Berkshire Regional Transit Authority Administrator Kathleen Lambert told the advisory board recently that she expects to receive $1.3 million in state funding to remain fare free. She said RTAs may be given up to $40 million this year statewide, which is $5 million up from last year.

While the state budget is not formally approved yet, the effect will take place on July 1.

The news came at the same time the board approved the BRTA's budget of $13.6 million, which is an increase of 11 percent since last fiscal year.

Some of the increases were in the fixed route area which jumped from $9 million to $12 million. Lambert said this is due to the contractual agreement between the union where they have a five percent raise for all of the drivers and other union members, as well as a seven percent raise for paratransit fleet operators.

Lambert said much of the costs raised were fuel costs because of the ongoing war in Iran. The authority uses about 8,000 gallons of fuel a month and has planned for $5.75 per gallon.

The customer service desk, which currently staffs two employees, will be shut down, she said. The two employees were given notice months in advance and one showed interest in becoming a bus driver and will plan to interview for that. Lambert said two new drivers have started and that the new transit company Keolis, which is taking over for Transdev, will continue to hold recruiting events. The new manager is Mark Moujabber, taking over for Bobby Quintos. 

Lambert told the board she believed there are discrepancies in ridership data. Deputy Administrator Benjamin Hansen, who was in operations before his current role, said the authority has been seeing low ridership because of route cancellations, however, this past month, the numbers did not make sense as demand has stayed the same but ridership seemed exponentially low.

To get the figures, bus drivers must manually push a button on the farebox to record passengers, wheelchairs, and bikes, which might have errors. There are automatic passenger counters (APCs) installed, but they are not certified, so are only used as a rough comparison tool as they are not accurate.

Board member Stuart Lawrence asked if there has been any investigation on if this might be deliberate. Hansen said there is not as he does not know how they could watch for that to happen.

Lambert said she has been working with professor Paula Consolini at Williams College, who will have a group of samplers who will ride the bus and gather a week's worth of data.

In the last meeting, the board spoke about anonymous emails from drivers, and a letter iBerkshires received spoke of unhappy drivers who were considering quitting because of decisions being made without "input from frontline staff," frustration and falling morale, and the removal of the former general manager shortly after Lambert came in.  

Multiple employees had also signed on to a vote of no confidence letter in the BRTA administration spearheaded by Raymond Killeen who is a bus driver and represents Cheshire on the advisory board. Killeen said losing Quintos was hard, stating he was an excellent general manager and not having him there led to hardships on accomplishing many things.

"Once the removal was there, it was difficult to accomplish certain things, because we had lost the general manager. So, the letter was an attempt to get things moving a little bit quicker, so we could provide a better service for the residents of Berkshire County. I don't know if it accomplished that. We were able to do some things, though, but the concern amongst rank and file here is that we're not providing the best service we possibly could, and we're hoping that when the new management team comes in, that can be accomplished," Killeen said.

Killeen said he was unhappy with the progress to a revised driver schedule. The day after the meeting, Lambert and the team had a meeting to discuss and negotiate run schedules, Lambert said it was a very good and productive meeting.

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