Campaign Statement: Krol Outlines Steps for Strong Financial Oversight

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PITTSFIELD, Mass. — Mayoral candidate John Krol has released a plan on how his administration will root out waste, provide effective financial oversight, find savings for residents and small business owners, all while growing the economy. 
 
"At a time when we have seen a record amount of excess cash, new cannabis revenue and an historic influx in federal dollars through ARPA, residents are rightfully upset that their taxes and water/sewer rates are skyrocketing. We need to fundamentally change the way we approach managing tax dollars in the city to provide professional oversight, identify waste and inefficiencies, and make our tax dollars go further," said Krol. 
 
A former city councilor, he also has been a small-business owner and executive in the health-care industry.
 
Krol outlined four simple steps to professionalize and to depoliticize city finances and operations to bring tax and fee relief to residents and local small business owners. 
 
1) Hire non-political financial experts
 
Begin a national search to hire a director of finance from outside the Pittsfield political establishment.
 
2) External audit performed by a fresh set of eyes
 
Currently Pittsfield has contracted with the same external auditor for more than a decade. It is time for a fresh set of eyes by contracting with a professional firm that has never done work for the city of Pittsfield in the past.
 
3) Leave no stone unturned — an internal city auditor
 
In addition to the aforementioned external auditing process, a Krol administration will work to create a position for a full-time internal auditor. The role of the position would not only include audits of the financials of every department but also key city functions and operations. This is a role that has been established in many other municipalities in Massachusetts and throughout the nation. Krol's vision is to have an internal auditor who is independent and does not report directly to the mayor.
 
4) Prioritize tax and fee relief for our residents and small local businesses
 
Savings discovered through rooting out waste, inefficiency and any corruption will be prioritized for tax and fee relief for our residents and small businesses.
 
"We need to hire the right people who are experts and have no connection to the political establishment, and then look under the hood to see why taxpayers and businesses have seen their taxes and fees go up. Where is that money going?" said Krol. "We can talk about building strong schools, safe streets, making Pittsfield more business-friendly and providing exceptional city services, but at the core of it all, none of this can be accomplished without building trust and confidence that our tax dollars are being spent properly."
 
Many municipalities across the country do have an internal auditor department, he said, and, most recently, the city of Springfield created such a department that not only focuses on financial matters, but also provides auditing of city functions, operations, contracts and more.
 

Tags: campaign statements,   election 2023,   mayor,   


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Lanesborough Officials Take Road District Dissolution Off Warrant

By Breanna SteeleiBerkshires Staff

LANESBOROUGH, Mass. — The Select Board has removed a town meeting warrant article regarding the dissolution of the Baker Hill Road District.

JMJ Holdings development consultant Tim Grogan spoke in public comment saying the Berkshire Mall owner is currently has purchase-and-sale agreement for the mall. 

Back in February, the Select Board settled a tax dispute with JMJ Holdings by agreeing to move forward in dissolving the district if the company paid $1.1 million to the town. JMJ Holdings had to provide a signed development-and-purchase agreement 30 days before the town meeting. 

JMJ holdings did not submit a payment to be made by May 9. Because of that, the Select Board voted to take the article of the warrant to be voted at the annual town meeting.

Meanwhile, the Baker Hill Road District presented a slideshow defending the district and explaining what it does.

The district currently provides a non-resident-funded revenue stream of around $500,000 per year. These funds help pay for police cars and officer salaries, dump trucks, fire trucks, and more for the town.

"Dissolution would mean the district's three commercial property owners would no longer have to pay for upkeep of the Route Seven/Eight connector road. As a result, the BHRD annual contribution of more than $500,000 to Lanesborough would disappear permanently, since the services and maintenance costs associated with the Route Seven and Eight connector road would still remain," said Tom Caraccioli, PR consultant with AH&M Inc. "Lanesborough would have to absorb these costs and continue to provide emergency services to the mall and Target. The financial burden for these remaining expenses would then fall on Lanesborough taxpayers through higher taxes or the reduction of other important town services."

The proposal with JMJ would affect the town in a negative way Caraccioli claimed. 

"JMJ is proposing a one-time payment of $1.1 million to Lanesborough in exchange, JMJ would never pay BHRD taxes again. The decision to dissolve the BHRD by accepting this proposed $1.1 million would be a permanent choice that would have irreversible consequences," he said. "There will be no official system in place to cover recurring costs once the money from this single payment is spent. Therefore, the proposed one-time payment is not a long-term solution for the town of Lanesborough."

JMJ's dispute was that the Berkshire Mall no longer exists as a functioning entity and it should not be on the hook for protection and maintenance that had been based on the mall's operation in its heyday. The company is seeking to redevelop the site as senior housing and town officials were asking the state to take over the Connector Road. 

District officials said it's not guaranteed that the state would take over the road linking Routes 7 and 8, built to service the mall back in the '80s, and that the state Department of Transportation had historically discouraged the town from asking. Even if it happened, it could take three to five years, during which no BHRD funds would be collected if the district is dissolved. The state would not replace the revenue they support, and they argued the state is facing its own budget issues making it unlikely they would want to take over.

The road district was created by an act of the Legislature and would require another act to dissolve it. The town meeting article asked for voter support for a home-rule petition to start that process.  

After the presentation, it was asked what the current financial status of the BHRD, given that JMJ hasn’t paid in a long time and if the district actually has the money or if it is dependent on the mall sale.

Mark Siegars, attorney for BHRD, reminded the room that the mall is under a purchase and sale agreement and if the sale closes, the district expects to receive more than a million dollars because of the lawsuit and lien, but does not have that cash yet. If the sale does not go through, BHRD will take the mall and sell it. The district still gets payments from Target, which is separate from the mall. 

There were also some questions on the district's history, with Select Board member Jason Breault asking if the mall did not have a high tax rate from the district, would it still be solvent. The exchange became heated between Siegars and BHRD Chair Bill Prendergast.

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