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Date: 1/10/2023
EASTHAMPTON – In its first meeting of 2023, the Easthampton City Council approved another 2 percent cost of living increase for its retirees.
The increase comes after former Gov. Charlie Baker approved the rate change in November 2022. The increase will be retroactive to the start of the fiscal year on July 1, 2022. This increase brings the total cost of living increase for fiscal year 2023 to 5 percent.
“[We want to] be reassured that our retirees and beneficiaries are better served,” said Councilor James Kwiecinski.
Mayor Nicole LaChapelle clarified that this increase would have no effect on the city’s current budget and that the Retirement Board has assessed the health of its financial accounts before moving forward with this recommendation.
City Auditor Hetal Patel noted that the city wanted to “evaluate all those factors and make sure we’re making financially sound decisions.”
The move is possible because the city is able to fully fund its retirement account, something that is rare in Western Massachusetts. Although there are unfunded liabilities outside of retirement, this account is doing well, LaChapelle said.
“It shows the financial strength of the city,” added Councilor Daniel Rist.
Stabilization Funds
The council also unanimously approved putting forward a supplemental appropriation request to its Finance Committee that would move $3 million from free cash to its stabilization funds. This would send $1.2 million to the general stabilization fund, $1.5 million to the capital stabilization fund, and $300,000 to the tax rate stabilization fund.
This move will help fund future city stability and capital projects, as well as “lighten the burden on taxpayers,” according to the request. The Finance Committee was expected to discuss the funds at its Jan. 11 meeting.