FY23 Budget: Rising to the Challenge
Town of Amherst, Massachusetts
A Message from the Town Manager
“This budget takes meaningful steps to meet our shared goals of improving sustainability and racial equity, and invests in our future as we emerge from the pandemic.”
-Paul Bockelman, Amherst Town Manager
Budget Overview
Below are some budget highlights, please click here to view the whole FY23 Budget document.
Budget Highlights
Proposed FY23 Budget: $89,905,330
Operating budget increases restored to 2.5% Plus Additional Funds for CRESS. Includes funding for the new office of Diversity, Equity, and Inclusion.
Capital spending budgeted at 10% of the Tax Levy hitting the Towns Goal. Includes funding for new ladder truck and the first payment for the construction of the Jones Library.
Continued commitment to fund pension and OPEB liabilities.
Complemented by strategic use of ARPA Funds for Economic Development, Mental Health, CAARP Implementation, Housing, Homelessness and more!
Overall budget increase of 5.1% from the adopted FY22 Budget.
FY 23 Budget Overview Table 1
*Please note the Amherst School Committee voted a budget of $25,105,300 on March 29, 2022. This amount is $52,800 higher than the amount in the budget guidelines provided by the Town Council. The Town Manager’s budget proposes the amount in the Town Council’s budget guidelines.
Revenue: General Fund
Revenues continue to recover from the pandemic led higher by local receipts, ambulance receipts, property taxes and state aid.
Property Tax Revenue: 2.5% increase plus New Growth for a total increase of 3.6%. New Growth is a key revenue driver for the Town and has been very strong the past few years. It is vital to maintaining our current service levels and for making new investments.
Local Receipts: Increasing by 17.39% and nearing pre-pandemic levels. Key drivers include hotel/motel excise tax, licenses and permits, and departmental revenue.
State Aid: Increase of 2.3% based on the Governor’s Proposed Budget.
Other Financing Sources: Recurring revenues are projected to increase. Ambulance Fund is up 35.5% and will support a planned purchase of a new ambulance in FY23. Enterprise Fund Reimbursements are up 19.4% as indirect costs from the Sewer funds have been restored. This section also includes Miscellaneous Revenues which in FY23 are a $100,000 of prior year unexpended capital, $75,000 of funding from Comcast to offset I-Net debt, and $500,000 of Reserves to support the first year payment for the library debt.
Expenses: General Fund
The expenditure budget increase is led by investments in operating budgets and capital while funding required pension and other state assessments.
Operating Budget: 2.5% increases for all departments. The elementary school budget increase is higher due to savings in charter tuition and the Municipal budget increase includes an additional $300,000 to fund the new CRESS department. Major cost drivers in the operating budgets are contractual wage increases and health insurance costs for active and retired employees.
Capital Budget: Set at 10% of the tax levy for FY23. It provides capital funding for all Town departments except the Enterprise Funds. More information on the capital budget included later in this document.
Miscellaneous: Includes the Hampshire County pension assessment which is rising by $362,798 or 5.5%. This assessment is driven by the cost of pension benefits and the total wage level of employees belonging to the Hampshire County retirement system.
Unappropriated Uses: Led higher by State Assessments for Charter Tuition and PVTA. Both of these costs have higher reimbursements on the revenue side to help offset the increase.
Capital Improvement Program
The plan for FY 2023 includes investments in school and town buildings, accessibility improvements, sustainability improvements, public safety equipment, roads and sidewalks, vehicle replacements, zoning, and more.
Appx. $1.5 million for road repairs (includes Chap 90)
$200,000 for sidewalks
$200,000 for Sustainability projects (double the prior year funding)
$100,000 for improvements to North Fire Station
$350,000 for Gym Floor Replacement at Crocker Farm
$1.5 million for ladder truck replacement
$361,500 for ambulance replacement
Enterprise Funds: Expenses
Enterprise Fund revenues are increasing as consumption recovers from a pandemic related dip and due to an increase in water and sewer rates.
Water: 5.6% increase
Sewer: 6.2% increase
Transportation: 1.1% increase
Solid Waste: 0.8% decrease
Notes:
Projecting 2.5% increase in water consumption as impacts of the pandemic subside
Planned increase in water and sewer rates to support infrastructure investments (still below state average and most area communities)
Projecting increase to parking revenues as downtown activity returns and parking permit fees are increased.
No use of reserves planned to support enterprise funds.
Stay Engaged
There are multiple ways to get involved. First, you may want to check the budget calendar which can be found here . This outlines when different departments will be reviewed by Finance Committee. The Finance Committee will hold a formal public hearing on the entire budget on May 16 th . You may want to attend one of these meetings and share your thoughts. Other ways include visiting the Town’s website Engage Amherst to submit questions and share your feedback that will be responded to in a timely fashion or by participating in other public events that will be posted on the Town wide calendar related to the budget.
You can also always email the Town Council at towncouncil@amherstma.gov or the Town Manager at townmanager@amherstma.gov .
Important FY 23 Budget Documents
View current, proposed, and previous budget information at www.amherstma.gov/budget
Meetings & Public Hearings
Budget Public Hearing May 16th @ 5:00 PM
Capital Improvement Program Forum June 6th
A full listing of important dates can be found on the budget calendar here.
Climate Action
Objective: To prioritize and implement regulatory, fiscal, and other actions to meet the Climate Action Goals adopted by the Council on November 18, 2019 by (1) making substantial progress on implementing Community Choice Aggregation, (2) implementing the portions of the Climate Action, Adaptation, and Resilience Plan that have been prioritized to start in FY2022 and FY2023, (3) ensuring that budgeting, purchasing, construction, repair, hiring, and other decisions involve considerations of energy, climate action, and resilience in order to determine greenhouse gas emissions impacts of energy use and move Amherst towards meeting the Climate Action Goals, (4) educating Town multiple-member bodies and staff on how to apply a climate lens in decisions-making in order to advance the Climate Action emission reduction goals, (5) including in the Capital Inventory (Charter Sec. 5.7(a)) a timeline for the transition of municipal buildings, vehicles, and equipment from the use of fossil fuels, and (6) reporting on the progress made towards meeting the 2025 interim Climate Action Goals.
Funding
$200,000 allocated in the Capital Improvement Program for Sustainability Projects.
$500,000 of ARPA funds allocated to implement strategies from the Climate Action, Adaptation, and Resiliency Plan.
Proposed acquisition of at least four hybrid vehicles, two vehicles with anti-idling technology, and one fully electric vehicle.
Resources Allocated to
Bring North Landfill Solar Project to completion
Complete Solar/Battery Storage Feasibility Study at Multiple Municipal Locations
Move forward with development of CCA
Outreach to rental community to measure rental housing efficiency
Expanding Bikeshare Network (Atkins)
Solar Siting Assessment
Community Health & Safety
Objective: To ensure the health and safety of the residents of Amherst by (1) continuing to take all steps necessary to ensure the health of the community in the presence of the COVID-1 pandemic and (2) in accordance with the Council’s vote on December 13, 2021, implementing the Community Responders for Equity, Safety, and Service Department to provide services to respond to issues of homelessness, mental health, and other non-criminal calls for assistance.
Funding
$371,520 added to fund the CRESS department
$250,000 of ARPA funds allocated for CRESS implementation costs
$252,000 of ARPA funds allocated to for Public Health Staffing and resources
$500,000 of ARPA funds allocated for public mental health services
Economic Vitality
Objective: To ensure the present and future economic health and well-being of the Town by (1) working closely with local institutions and business entities, including the BID and Chamber of Commerce, to provide support and assistance to the local business community in the face of the economic challenges encountered as a result of the COVID-19 pandemic, (2) facilitating the review and revision of the Zoning bylaws to promote diverse neighborhoods, affordable housing, and new growth in downtown and village centers, (3) creating a leadership structure to oversee parking policy, planning, and implementation, and (4) implementing high visibility and consistent signage in key locations and updating the Town’s parking webpage to be more user-friendly.
Funding
$100,000 of ARPA funds allocated to provide startup, growth, and technical assistance grants to small businesses
$350,000 of ARPA funds allocated for economic empowerment to support entrepreneurs, cultural organizations, and local artists and to foster economic opportunities with the University and Colleges.
$300,000 of ARPA funds allocated to support economic improvements in downtown
Resources Allocated to
Working closely with the BID and the Chamber of Commerce to provide support and assistance to the local business community
Working with local restaurants to establish outdoor dining spaces
Improvements to parking, including a new leadership structure and updated website
Implementing the wayfinding system which will provide high visibility and consistent signage
Advancing the North Common project to support revitalization of Downtown
Four Major Capital Investments
Objective: To continue progress on Four Major Capital Investments consistent with the October 21, 2019 Council vote by (1) meeting Town and MSBA milestones and deadlines, (2) supporting the Library Building Committee in its work to realize the renovation/expansion of the Jones Library consistent with the Town Council’s April 5, 2021 vote and the election results on November 2, 2021 affirming that vote, (3) funding and beginning the schematic design phase for the replacement of the Central Fire Station, and (4) securing a new location or locations for the Department of Public Works headquarters.
Resources Allocated to
Support the work of the Elementary School Building Committee and the Jones Library Building Committee
Identify a location for the Public Works facility
Housing Affordability
Objective: To provide access to safe, affordable housing for low- and moderate-income residents by (1) working with the Community Resources Committee and the Amherst Municipal Affordable Housing Trust to implement the Comprehensive Housing Policy adopted by the Town Council on September 27, 2021, (2) ensuring the continued operation of a seasonal shelter, and (3) ensuring the operation of a permanent seasonal or year-round shelter.
Funding
$2,000,000 of ARPA funds allocated to support development of Affordable Housing and a shelter/transitional housing.
Adding CPA funded Housing Coordinator to support issues related to affordable housing.
Resources Allocated to
Continue development of affordable housing at Belchertown Road and East Street School sites.
Identify both temporary and permanent shelter locations.
Racial Equity & Social Justice
Objective: To ensure all community members are protected, listened to, and served by their public servants, to foster a community free of fear, intimidation, and violence, and to incorporate significant involvement of BIPOC residents in shaping policies and procedures by (1) implementing the Diversity, Equity, and Inclusion Department, (2) supporting the work of the African Heritage Reparations Assembly in making recommendations for repairing the damage of structural racism in Amherst, (3) supporting the work of the Community Safety and Social Justice Committee, and (4) making recommendations to the Town Council regarding the actions recommended in the Community Safety Working Group Reports.
Funding
Adding $61,802 to fully fund the Office of Diversity Equity and Inclusion.
$500,000 of ARPA funds allocated to exploring the creation of a Youth Empowerment Center.
Resources Allocated to
Support the work of the African Heritage Reparations Assembly.
Support the work of the Community Safety and Social Justice Committee.
Stay Involved
Thank you for viewing our FY23 Budget Story companion piece. Visit our FY23 Budget page on Engage Amherst to view more documents, upcoming meeting dates, share your feedback and ask budget related questions. Click here to view the full FY 23 Proposed Budget document.
Email your Town Council at towncouncil@amherstma.gov or visit them online at www.amherstma.gov/towncouncil
Email the Town Manager at townmanager@amherstma.gov
You may also view this and past budgets documents at www.amherstma.gov/budget
