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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Lanesborough Board Looks to Pontoosuc Island Safety and Cleanup

By Breanna Steele

LANESBOROUGH, Mass. — The Friends of Pontoosuc cleaned up the two islands on the lake and shared concerns of what they saw.

Kevin McGinnis, Friends board member, spoke to the Select Board last week about how the cleanup went and erosion the group discovered.

"We particularly wanted to go out and take a peek at the islands and it was seven bags of garbage and a lot of refuse from geese that we actually removed from both islands," he said. "The Keeler Island, particularly in Lanesborough, that had a Sheetrock bucket full of nails that we actually removed from there, too, and that was from probably multiple years of pallet burning out there."

McGinnis added that there is significant erosion on the east side of the islands, facing the deepest part of the channel.

He said Lee Popovich, who knows horticulture, suggested plantings along the edges to hold the soil and filter runoff that may help with the E. coli outbreaks on the lake.

"These are things that we can discuss on trying to keep those islands in enjoyable shape, and for people to be able to enjoy," McGinnis said, by reducing risks such as geese deposits, and plantings that can help filter some of the debris.

"We can't control how hard our rain comes, but we can mitigate some of that filtering processes to keep bacteria count lower. Because if you notice, pretty much the E. coli breakouts that we do have are right after heavy rain."

He wants to help keep the islands safe and healthy. He introduced the cleanup group, saying the cleanup was enjoyable and those who volunteered help make a difference.

"Look forward to in the future bringing more information back, and with a lot of moving parts to talk about mitigating erosion and certain things," McGinnis said. "But it's something that we all need to be kind of aware of, and this body of water is so enjoyable, and we definitely want to try to keep it as healthy as possible, and keep control or keep an eye on certain things."

Select Board member Jason Breault asked about what the insurance is for the islands to which Town Administrator Gina Dario responded that the island is a public park, so it's covered the same way as other town land, like Glaston Park. There's no added liability.

Breault then asked from a patrol aspect what that means.

"Obviously, if we have an underage drinking party, we have no mechanism to address it, or if there's a medical emergency on that area, we would have to get a boat from Pittsfield, so obviously we have some sort of a delay there," Police Chief Rob Derksen said. "That's the only concern, I guess, is it's a park that we can't patrol and we can't regulate on a regular basis," 

Breault wondered if they could get funding for a boat down the line but Derksen said it would be difficult with his small force.

"That's pulling the thread on a sweater because then I have to have certified boat officers and, I mean, so that's training that's time away and then I would have to be able to actually put them on the boat, which again as you've heard me say a million times, most of the time I have one officer on duty so I can't split them in half and put half on a boat, half in a car, so it would be a challenge."

He added that the lake is patrolled by the state Environmental Police but with recent funding challenges, it's not that much.

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