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 Planners Bring STR, ADU, Signage Bylaws for Town Vote

By Breanna SteeleiBerkshires Staff

LANESBOROUGH, Mass. — The Planning Board held a public comment on the much anticipated bylaws for short-term rentals, accessory dwelling units, and signage to be presented at the annual town meeting.

For the past few months, planners have diligently been working on wordage of the new bylaws after Second Drop Farm's short-term rental was given a cease and desist because the building inspector said town bylaws don't support them.

The draft bylaw can be found on the website.

The board voted on each of the four articles and had public comment before moving to entertain any amendments brought forward.

A lot of discussion in the STR section was around parking. Currently the drafted bylaw for parking states short-term rentals require two parking spaces, and with three or more bedrooms, require three spaces but never more than five.

There were questions about the reasons for limiting parking and how they will regulate parking renters choose to park on the lawn or the street. Planners said it is not their call, that is up to the property owner and if it is a public street that would be up to the authorities.

Some attendees called for tighter regulation to make sure neighborhoods are protected from overflow.

Lynn Terry said she lives next to one of the rented houses on Narragansett Avenue and does not feel safe with all of the cars that are parked there. She said there can be up to 10 at a time on the narrow road, and that some people have asked to use her driveway to park. She thinks limiting to five cars based on the house, is very important.

The wordage was amended to say a parking space for each bedroom of the house.

Rich Cohen brought up how his own STR at the Old Stone School helps bring in money and helps to preserve the historic landmark. He told the board he liked what they did and wants to see it pass at town meeting, knowing it might be revised later on.

He said the bylaws now should not be a "one size fits all" but may need to be adjusted to help protect neighborhoods and also preserve places like his.

After asking the audience of fewer than 20 people, the board decided to amend the amount of time an short-term rental can be reserved to 180 days total a year in a residential zone, and 365 days a year in every other zone. This was in the hopes the bylaw will be passed and help to deter companies from buying up properties to run STRs as well as protecting the neighborhood character and stability.

They also capped the stay limit of a guest to 31 days.

Cohen also asked them to add "if applicable" to the Certificate of Inspection rule as the state's rules might change and it can help stop confusion if they have incorrect requirement that the state doesn't need.

The ADU portion did not have much public comment but there were some minor amendments because of notes from KP Law, the town counsel.

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