‘Tax Squad’ delivers report on money-saving measures
Date: 12/27/2011
Dec. 28, 2011By G. Michael Dobbs
Managing Editor
HOLYOKE — As one of her last official acts, Mayor Elaine Pluta released the report of the “Tax Squad,” the group she formed to seek ways to lower both residential and commercial property taxes in the city.
Pluta assembled the group earlier in the year. It included Treasurer Jon Lumbra, Auditor Brian Smith, Assessor Anthony Dulude, resident Shelley Schlegel, restaurant owner Jose Bou, resident Jay Whelihan, Francesca Maltese of the O’Connell Development Group and City Councilors Linda Vacon, Kevin Jourdain, and Todd McGee.
Making businesses pre-pay for the services of off-duty police officers for extra duties, not paying for the Commonwealth’s obligation for Quinn Bill expenses and creating a plan for the Holyoke Geriatric Authority to pay its obligations to the city are among the suggestions for cost-savings actions.
Pluta said most of the provisions listed in the report received unanimous support from the group.
Pluta said some of the measures could be implemented immediately, while others would take time.
She said the greater responsibility for putting these cost-cutting actions in motion is with the City Council.
As far as how much money the suggestions in the report would save the city, and therefore affect the tax rates, Pluta said the group did not discuss the monetary impact of the proposals.
“There are too many unknowns,” she said.
The report includes the following recommendations:
• Reduce the growth rate of the city’s operating budget. Review all city leases to make reductions in costs such as the School Department and the Creative Arts Center. The city should develop a plan to consolidate the Human Resources functions within the city government. Explore consolidating all non-school custodians under the Department of Public Works (DPW).
• The city should create a “Replacement Reserve” to fund the need for a revolving five-year Capital Improvement Program. This account should be a revolving account, which is able to fund these needs.
• With the Commonwealth of Massachusetts failing to live up to its commitment to fund its 50 percent share of the Police Quinn Bill, the city should no longer be forced to cover the Commonwealth’s share. The city should keep its commitment to what it has always paid but it cannot afford to absorb the $500,000 that the Commonwealth has refused to pay.
• The Police Department’s “Off Duty” account should be prepaid by all vendors that wish to hire the city’s police services for various purposes; including, road work. No longer should the city be at risk of not getting paid in full for services it renders.
• The city should move to combine the billing of the Water & Sewer Departments.
• At the beginning of each budget session, a brief one or two page document should be prepared identifying the broad budget categories such as debt repayment, police, fire, DPW, School Department, etc., and providing the following information for each category: current budget for each category; change from previous year; change over the past five years; percentage of overall budget; and source(s) of funds, if other than the locally generated revenues.
• If a budget category or line item has been agreed upon by contract or other legal agreement, then the amount and duration of the governing contract or agreement shall be noted prior to acting on that budget item.
• Prior to any financial decision (i.e. bonds, contracts, financial transfers) being made by the City Council, the City Council should be provided with specific information on the impact of their potential decision will have on the tax rate or future spending of the city.
• The city should create a plan and act upon that plan for the Geriatric Authority of Holyoke to pay its obligations to the city.
• The city should reach out to our neighboring communities to forge relationships on how we can provide or share regional services and reduce shared expenses.
• Create or improve the city’s current Payment In Lieu of Tax program.
• The city should develop a plan for reducing commercial tax rates to a potential 150 percent of the residential rate.
• The city should consider restructuring its Tax Incremental Financing program for businesses.
• The city must undertake aggressive marketing of city owned properties. The city should develop a marketing plan to get city owned properties sold and back on the tax rolls.
• The mayor and City Council should pursue pension obligation bonds to fund the city’s unfunded pension liability and restructure the payment series, which will greatly improve the city’s annual cash flow by decreasing our required annual payment and interest rate.
• The city should request the Legislature to allow the city to provide tax incremental finance agreements to individuals who wish to rehabilitate multi-family residential dwellings. Moreover the city should lobby the state to allow greater tax forgiveness over certain types of plighted properties so the city can get them back on the tax rolls.
