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Date: 6/28/2023
AGAWAM — City councilors delivered the deciding vote on June 20 to increase municipal pensions in the face of a rising cost of living.
“Our retirees are struggling and having difficulty on whether or not they can put food in their refrigerators and purchase medications they all, including myself, need,” said Hampden County Retirement Board Chair Karl Schmaelzle, a Feeding Hills resident, in an address to the Agawam City Council.
The cost-of-living adjustment would rise from the already approved 3% to a total of 5% on the first $18,000 of benefit, an increase to the individual retiree of about $360 per year. Schmaelzle said about half of Hampden County Retirement Board clients get annual pension payments of $18,000 or less.
Schmaelzle said the increased benefit rate would not affect town assessments in the upcoming fiscal year. He said 11 towns had already approved it, and he needed just one more to achieve the required two-thirds majority in the 18-member system.
He said the state employee and teacher retirement program cost-of-living raises were changed to 5% this year, and Social Security — for which he said county retirement members often don’t qualify, or receive a two-thirds cut in benefits — saw cost-of-living adjustments of 8.7% in 2022 and 5.9% this year. Agawam town government has 379 retirees in the county system, 266 of whom live in Agawam.
Councilor Cecilia Calabrese was the lone vote in Agawam against the 2% boost. She said “these are taxpayer funds and there are people who don’t have the benefit of a state retirement that are also dealing with increased costs of food, fuel, electricity, utilities, cost of living, and now we’re saying to those folks, OK, we’re going to take some of your tax dollars and give them to these folks over here.”
Councilor Rosemary Sandlin said town workers often consider their defined-benefit pension when choosing to work in the public sector, which she said pays less than the private sector.
“I think it behooves us, when we have the opportunity to give them a 2% boost, we take that opportunity and say ‘thank you’ for all your years of service,” she said.
Also at their June 20 meeting, the council approved the mayor’s proposed $123.53 million budget for fiscal year 2024, the year that begins July 1.
Before the vote, Mayor William Sapelli said the budget represents less than a 6% increase from FY23. He said he is aware this will result in a property tax increase at a time when homeowners are contending with price inflation, but said the town government is facing the same pressures of increasing costs for insurance, supplies, vehicles and energy.
“The only way we can reduce the budget is by eliminating some of the services we have and enjoy, or by not upgrading our equipment and our supplies, and/or laying off people,” he said.
All 10 councilors at the meeting voted for the budget. Councilor George Bitzas was not present.
Councilors declined to acquire 497 S. Westfield St., a 53.6-acre parcel where Ralph DePalma had planned to build townhouses. DePalma is planning to sell the land to Bretta Construction LLC of Wilbraham, but because a portion of it was receiving agricultural tax breaks, the town had the right to match the $2.2 million sale price and buy it.
Town resident Corrinne Wingard spoke in favor of the acquisition, proposing that the town build much-needed affordable housing for seniors and young adults, and also set aside some conservation land. She said the town has $1.86 million in Community Preservation Act funds it could put toward the purchase, and could bond the rest of it against future CPA revenue. CPA funds come from a surtax on local property taxes and from matching state grants.
Council President Christopher Johnson said the mayor had said he does not want to acquire the land, and therefore “there’s virtually nothing we as a council can do, because all appropriations originate with the executive.” The council voted 8-1 against buying the land, with only Councilor Paul Cavallo in favor.