AMHERST — Continuing municipal budget challenges are prompting town officials to explore measures that could improve revenues and reduce expenses, from zoning changes aimed at expanding the tax base to trimming labor and operational costs.
In a financial outlook presentation at a joint meeting of the Town Council, School Committee, Finance Committee and Jones Library trustees on Oct. 5, Finance Director Sean Mangano described a need to begin considering ways to deal with “a very difficult budget that has persisted year after year.”
Mangano said the town should begin strategizing a few weeks before the financial indicators meeting that will set the stage for preparing the town, schools and library’s spending plans for fiscal year 2028, with a focus on items over which the town has control.
One of those areas, he said, is bringing in more tax revenue from developments.
“We’re really looking for how can we actually increase the growth rate for revenues year after year consistently from where it is now,” Mangano said.
Mangano said this is only the start of the conversation and will not impact how the fiscal year 2028 budget is developed. “It’s really looking long term on how we can put the town on a positive trajectory,” he said.
Recent years have brought more struggles in developing budgets. Town Manager Paul Bockelman observed that a Town Council vote last spring to cut capital spending in order to boost the elementary school budget was unusual in that it contradicted the board’s policies.
For many years, the town, schools and library budgets increased equally across the board, creating a partnership across the entities. But that has become strained, with Bockelman noting that funding limitations have contributed to occasional animosity.
With a 1% to 1.5% annual shortfall, as revenues increase 3.5% and expenses increase between 4.5% and 5%, each year shows a gap of about $1 million and developing budgets is likely to only get more difficult.
Mangano put out some ideas for increasing revenue, such as regionalization. For instance, an elementary school district with Amherst and Pelham could generate $300,000 in regional transportation reimbursement.
He also suggested advocating for increased state aid, such as a higher rate of payment-in-lieu-of-taxes on state-owned land. Amherst gets $334,000 a year, or about $17,000 per acre, compared to Edgartown, which receives $93,000 per acre. Another issue is that 30% of the land area in Amherst is tax-exempt, one of the highest across the state.
While not necessarily a popular idea, a Proposition 2½ tax-cap override may be on the table, Mangano said. A general override was last passed by Amherst voters in 2010.
Still, Amherst has been trending in the right direction with its property taxes. Once ranked 51st across the state, the town is now 68th among all communities in the average tax bill.
Jeff Bagg, director of planning and economic development, also presented what he called “early thoughts and strategies that will have to be considered over time.”
Zoning efforts underway could be expedited and made more efficient, he said. Hampshire College, which has never been taxed, could have development potential, while the downtown design standards and the East Amherst overlay district may help in having an appropriate pipeline of projects ready to go.
But the town also needs to take a nuanced approach, Bagg said, observing that developers choose municipalities to commit time and resources to based on how welcoming they are.
“We can initiate good zoning, we can have staff willing to support a project, [but] we need elected officials who will stand up and vocalize support for the projects,” Bagg said.
Amherst could also complete an economic development plan and promote in-fill projects for village centers. There is also tourism potential, Bagg said.
“It is really an untapped set of strategies that we see could help support new revenue growth and make sure we’re inviting people to come to Amherst for a variety of different purposes,” Bagg said.
Councilors had a chance to ask questions, though mostly to react, with a full-fledged discussion likely later in the fall.
District 2 Councilor Amber Cano-Martin suggested that energy usage could be a focus for revenue or cost savings, observing the town has discussed putting solar panels over the high school parking lot.
District 2 Councilor Lynn Grioesemer said she would like to see new municipal programs evaluated for their short-term and long-term costs.
Councilors applauded that the work to investigate revenues and expenses more thoroughly is happening.
“I appreciate the thoroughness of the presentation and the scope of all areas being considered,” said District 5 Councilor Sam MacLeod.
At Large Councilor Andy Churchill looked forward to reviewing solutions.
“It’s sobering, but also very interesting,” said Churchill.
