PITTSFIELD, Mass. — It took the City Council less than an hour on Tuesday to approve a split tax rate that will see the average homeowner's property tax bill increase 8 percent.
The residential rate for fiscal 2023 is $18.32 per $1,000 of valuation and the commercial, industrial, and personal property rate of $39.21.
This is a 24 cent decrease from last year's residential rate of $18.56 and a 69 cent decrease from the commercial tax rate of $39.90.
Despite the lower rate, average tax bill for a single-family home will increase by about $420. The rise if value is primarily due to housing sales in 2021. The average single-family home was valued at more than $248,000 at the time of the assessment in January, up $26,000 from the previous year.
The FY23 tax rates represent a commercial shift factor of 1.74. The city will levy of $101,150,561.84 to cover this year's budget; the levy limit is $104,649,832.
There was a $393,212,727 increase in real and personal property values over fiscal 2022, bringing the city's valuation to $4,488,363,907. The residential valuation is $3,582,488,605.
The tax classification passed with Ward 2 Councilor Charles Kronick, Councilor at Large Karen Kalinowsky, and Ward 1 Councilor Kenneth Warren voting in opposition. Ward 7 Councilor Anthony Maffuccio was absent.
Kronick unsuccessfully motioned to use $3 million in free cash to reduce the burden on homeowners, a move that was described as a "short-term, short-gain strategy" by the city's finance director, Matthew Kerwood.
"What I want is to keep the people in their homes because they can't afford to spend more money on their property taxes than they are spending on interest and principle combined," the councilor said.
Kalinowsky said the city is over-taxing residents and that residents are paying more for basic needs such as oil, gas, and food.
"I think we can do something for our residents," she said. "I don't think our residents can, some of them, afford the tax increase due to what their houses were valued at in January."
Kronick, Kalinowksy, and Warren were the only votes in favor of using free cash while the rest of the council argued against depleting the city's reserves for what they felt was a negligible impact. Some quick math showed that this would save residents about $75.
"We believe that saving those reserves is essential for the fiscal stability of our city," Mayor Linda Tyer said. "So I do not think this is a wise decision."
Tyer said the administration feels strongly about having reserves in the savings account to address emergencies, citing a "significant fiscal crisis" when she took office that prompted recovery goals.
She explained that the city's free cash has not yet been certified by the Department of Revenue and cannot be committed but when it is, the council will see a proposal to spend a "significant amount" on body cameras for police. This has been widely requested by councilors and the community after the police killing of Miguel Estrella in March.
During budget season, the council voted to appropriate $1 million of free cash to reduce to tax rate.
"The impact to the reserves of a $3 million appropriation is significant. The impact of the tax rate for the taxpayer is not going to be hundreds of dollars, it's going to be something less than a dollar," Tyer later added.
"The other thing that I would say is that we're here this evening to fund a budget that was approved in June. That's the process and the budget that we proposed was lower than the budget that the City Council approved because you asked us to put additional services into the budget and we agreed to do it. ...
"So I think that we've done our part to be as fiscally responsible as possible, and I think this evening is an opportunity for us to balance what's needed in order to fund operations for the city of Pittsfield and protect our reserves."
Councilor at Large Earl Persip III said the city needs to think long-term and appropriating more free cash is not a way to solve the high tax rate. Residents don't want their houses to decrease in value, he pointed out, as it is part of a person's wealth as they get older.
"I won't support $3 million," Persip said. "I think using our reserves for 30 cents, $75 for an average taxpayer just isn't using our money in a smart way."
Kronick highlighted the importance of encouraging new business growth in the city and said American Rescue Plan Act funds should be used to "backfill budget accounts that have been depleted by loss of revenue."
Tyer stressed that the regulations written by the U.S. Treasury specifically prohibit the use of ARPA funds to lower the tax rate.
Warren argued that the city can "get creative" by using it to pay for projects that are in the budget so that the money doesn't have to be raised by property taxes.
"It can be done whether you guys want to do it or not. I understand there's a difference of a view and I agree with the administration for the most part," he said.
"Most of the time you need to plan for the future and there are some good things they have done, I have no problem with that, but I also feel that there is a short-term, short gain situation where we could help our residents because of the pandemic [with] the monies that the federal government gave to allow us to do that."
If you would like to contribute information on this article, contact us at info@iberkshires.com.
Your Comments
iBerkshires.com welcomes critical, respectful dialogue. Name-calling, personal attacks, libel, slander or foul language is not allowed. All comments are reviewed before posting and will be deleted or edited as necessary.
No Comments
Lanesborough Reviews DPW, COA, Ambulance Budgets
By Breanna SteeleiBerkshires Staff
LANESBOROUGH, Mass. — The Select Board and Finance Committee had a detailed look last week at the needs for the fiscal 2027 budget from the Parks Commission, ambulance, Council on Aging, and the Department of Public Works.
All were asked what it would mean if they were asked to level fund their budgets.
The Council on Aging Director Lorna Gayle said she had room to reduce her budget and her hours. Her spending plan budgets $54,187 and $38,000 for transportation.
She could cut $300 in office supplies but did request an increase to add a chair tai chi class, adding $3,500 for the instructor.
Gayle she believed she take transportation driver line down to the 2024 level of $30,000; the current projection is a little over $35,000. When others were nervous about losing a driver, Gayle assured them he would not leave as he loves his job.
When asked about participation rates she said it varies but the COA has a good turn out and the yoga class is so full it's capped.
"The participation rates in the classes vary, but we've had sometimes three people because it's snowing, but then we have 22 people, and we're cramped in here," she said. "The line dancing class one started out there were like five of us tap dancing away."
The conversation focused on wages, brain injury services, transportation, and health care, as well as the corresponding Senate and House bills. click for more
Baseball dugouts are planned for Clapp Park, and in April, the community will have one last look inside the historic Wahconah Park grandstand before it is demolished. click for more
Demand in career technical education means that Taconic will hold a lottery on Monday for fall admissions since it's short by almost 20 seats compared to the number of applications. click for more
After five meetings, the Planning Board voted to deny Berkshire Concrete's special permit, however, the company can still reapply before its current permit expires. click for more