The Pittsfield, Massachusetts city council has cemented next year’s sewer and water rates.
Tuesday’s meeting began with the council rejecting an alternate plan for the city’s $74 million wastewater plant project proposed by perennial critic Craig Gaetani. Then, after surviving a preliminary vote last week on a pair of 6-5 votes, Mayor Linda Tyer’s sewer and water rates were accepted for fiscal year 2019. The water rate was originally proposed to go up by 20 percent in 2019, and then remain at that rate for 2020 with no further increase until 2022.
“I know we say it’s only 20 percent, and we have it broken down in our packages based on a single-family home with one or two toilets that calculates the water unless they’re on a meter, but when you’re talking about some of the businesses, 20 percent increase just on the water side can be substantial," said Ward Four Councilor Christopher Connell. “I would like to change this and make in 2019 10 percent and 2020 10 percent. And I think that will – it may put us a little behind at the beginning, but in the second year we will be right back there with the amount that we should have in retained earnings.”
The motion prompted a prolonged discussion between the council and city representatives about the manner in which rates were set – but when the dust settled, Mayor Tyer accepted Connell’s proposed change “so we don’t have to come back in June and rehash this. That’s what our preference would be, but we’re comfortable with reducing the amount to be collected for those two periods of time.”
Councilor Melissa Mazzeo, who had raised procedural questions earlier, expressed her confusion to city council president Peter Marchetti about what the nature of the pending vote was.
“I guess what I want to know – is it really an order, though?” asked Mazzeo.
“Well, that has to be an answer to the solicitor, who has already said yes," responded Marchetti.
“He said it is an order – so the order… OK. This is crazy,” said a dismayed Mazzeo.
She asked Pittsfield Director of Finance Matthew Kerwood about the rate plan’s emphasis on building retained earnings. Citing Russell Consulting’s report on the city’s water enterprise fund, Kerwood said the city wants to rebuild its annual retaining earnings to around $2 million or $3 million.
“An appropriation in FY17 – excuse me – of $169,000 for retained earnings – that’s the last appropriation that’s been made for retained earnings," explained Kerwood. "So we’re doing exactly what we said we wanted to do, which is build retaining earnings.”
Mazzeo – who had strenuously opposed Mayor Tyer’s wastewater plant plan – wasn’t convinced that the hike was worth it.
“I don’t think we need to build this thing up, having millions of dollars in there, when we’re hitting our residents so hard on so many other things,” she told the council.
It passed 9-2 – with Mazzeo and Councilor Kevin Morandi voting against it.
The second vote on the mayor’s plan – a 50 percent increase in sewer rates for fiscal year 2019 – passed unamended, by a 7-4 margin.
The projected impact on Pittsfield residents’ tax bill for 2019 is around $43.
