Higher Education Subsidy?

Ladder 1 at UMass HVAC malfunction fire 12/2/14

Undoubtedly the presence of Amherst College (our #1 land owner), Hampshire College (#3 landowner) and UMass/Amherst (#2 landowner) provide the #1 opportunity for employment in town while also providing boatloads of "college aged youth" for our anemic business sector.

But do these tax-exempt institutions really pay their fair share, especially considering property taxes are the #1 revenue source for municipal services?

 AFD Engine 1 at Amherst College Crossett Christmas disturbance 12/7/14

A look at the cold hard facts reveals a simple answer:  Hell no!

In his budget presented yesterday to the Select Board and Finance Committee (and almost certainly to be passed this spring by Amherst Town Meeting) Town Manager John Musante allocates to the Amherst Fire Department $4,466,729.

 2014 was busiest year in history for AFD medical runs (2nd busiest overall)

In 2014 AFD had their second busiest year in history with a total of 5,914 runs with 1,566 of those going to our three institutes of higher education, or 26.5%, which works out to $1,182,789 worth.

UMass paid us $350,000 for AFD protection via a "5 Year Strategic Agreement" (that is now 2.5 years past due for renewal) and Amherst College paid $90,000.  Hampshire College paid zero. 

So total intake to the town coffers is $440,000 on a fair share of $1.2 million!  All these monies simply go into the town's General Fund, not directly to AFD.

Based on service provided, UMass (19% of AFD runs) should have paid us $848,678; Amherst College (4.25% of AFD runs) should have paid $189,835; Hampshire College (3.18% of runs) $142,041.

Amherst College is our #1 landowner and #1 taxpayer because of all the houses they own and rent to professors, and some commercial property (Amherst Golf Course and Lord Jeff Inn).

Last year Amherst College paid around  $490,000.  Hampshire College is our #3 largest landowner, but only paid $67,000 in property taxes on all their holdings last year.

 AFD on scene Hampshire College 12/9/14 for minor fire

Amherst College donated $90,000 to the town last year for AFD protection while Hampshire College -- one of the most expensive liberal arts colleges in America -- donated zero.

If the Town Manager could get our Colleges and University to pay their fair share for vital services, we could easily add a few firefighters to that overburdened public safety department.

And have money left over for a downpayment on the forever talked about, new South Amherst Fire Station.

Status Quo + Budget

Town Manager Musante (center) presented his $21.6 million budget in 40 minutes

Unlike the Amherst public schools the town side of the budget is easily living within its means.

The FY16 budget (starts July 1st)  presented today by Town Manager John Musante to the Select Board and Finance Committee is a 2.5% increase over the current year, and even allows for an increase in badly needed police personnel by two officers.

Although APD will still be down three sworn positions from where they were a decade ago, and two grant funded positions dried up over the past few months.

Musante on adding police

Of course this budget falls terribly short by not also increasing Fire Department personnel, the other -- equally important -- half of Public Safety.  

Other staff additions includes an Economic Development Director, who presumably will work hand in hand with the Chamber of Commerce and Business Improvement District to increase business activity in a town still suffering from an anti-business reputation.

The DPW department will also get an "Administrative Analyst Position" to provide better customer service by being proactive with information.  Seems any time the DPW does a major road project, like the recent Pine Street reconstruction, tempers flare over the pace of the project. 

Interestingly the Town Manager did not follow up on his memo to the Select Board last summer suggesting it was time to relook at leasing out the Cherry Hill Golf Course, which annually costs as much as hiring two new firefighters.

The public schools make up more than a majority of the overall Amherst budget and at the moment they are looking at almost a $1 million in red ink, possibly requiring the axing of 17 employees.

The schools are separate from the town budget presented today although both require Town Meeting approval in the spring.  The only direct crossover is the one-third funding the town does provide for Amherst Together

The Select Board will now work with the Town Manager's budget (hopefully finding a way to add a couple of firefighters) and the Amherst and Regional School Committees will work with School Superintendent Maria Geryk once her sure-to-be-controversial budget is finally presented later next month.

Controlling The Message?

 

A two hour frank discussion about race 
 

Although WHMP was not snarky enough to set up up empty chairs at the "Reading, Writing & Racism?" community forum this morning on the Amherst Town Common to represent Amherst town officials last minute cancellation, they did manage to mention it a few times during the two hour broadcast.  To the applause of the studio audience of 35 or so.

 Crowd on the town common watching live radio broadcast

Town Manger John Musante (whose brother Dave is WHMP general manger), School Superintendent Maria Geryk and new "Media & Climate Communications Specialist" Carol Ross had originally accepted the offer from WHMP  (not exactly a Fox News) to discuss the new "Amherst Together" initiative, a direct response to the racial turmoil over the past year.

Town Manger Musante already caught criticism on Monday night at the Select Board meeting, which consisted entirely of his "evaluation," where SB member Alisa Brewer bristled at his entering into an agreement with the schools without first checking with his bosses, the Select Board.

The schools lack of transparency was repeatedly cited as a problem.  And not just from parents, activists or the media.

Recent ARHS graduate Catia Correia, who worries about her brothers in the aftermath of #Ferguson, talked about the racial incidents surrounding teacher of color  Carolyn Gardner:



Other panelists brought up all the usual criticisms of our public schools -- the achievement gap between students of color and white students, low percentage of minority teachers and just the perception that the administration takes an us against them stance with community members who are trying to help.

By failing to show up for this important unscripted event, town and school officials sent a message that they are uncomfortable having a frank discussion about race when they are not in control of the microphone. 

Makes you wonder what they are (still) trying to hide?

 

Sonji Johnson-Anderson tells panel they did not need a question mark after the title "Reading, Writing & Racism?"

Stephen Armstrong, Ph.D. and owner of Kumon in South Amherst asks panel "Specifically what are you going to do over the next 12 months to level the playing field?"

"That Really Stinks"

Budget Coordinating Group this morning

Good thing about being a fly on the wall at public meetings not usually attended by reporters is town officials are a tad more forthright with their comments.

Take this morning's Budget Coordinating Group meeting for instance.  During his update on the Echo Village negotiation with mega-property owner Jamie Cherewatti, after lamenting the deal falling through at the last minute, Town Manger Musante closed with, "That really stinks".

The town had put all their eggs in one basket with a proposed Community Development Block Grant request of $800,000 because $600,000 of that would have gone towards purchasing from Cherewatti the 24 unit Echo Village Apartment complex.

James Cherewatti on left

The deadline for the grant application was February 14 (how romantic) and Cherewatti's last second rejection (by ignoring it) of a "fair market" purchase offer means the grant application is now dead.  The price offered is exempt from Open Meeting Law public disclosure, although the principal party who made the offer could probably release it.  

The Town Manager pointed out to the BCG, "That has a domino effect on three other programs:  Homeless Shelter, Food Pantry Program at the Survival Center, and $20,000 in emergency funds for the needy."

His proposal, which seemed to garner the support of the group, is to now take a $125,000 recommendation to Town Meeting using Free Cash.

He specifically wants it to be a stand alone item separate from the overall budget to telegraph that it's a "transitional" emergency appropriation, and not a return to the old days of annual town funding of Social Service programs. 

Finance Director Sandy Pooler floated the idea of having the money come out of Stabilization Fund which requires a two thirds vote to reinforce that this is a one time thing, and that Town Meeting "would really have to think about it."

BCG Chair Stephanie O'Keeffe cautioned it could send the message that town officials were setting too high a hurdle and it could be "off putting" to Town Meeting members.

Pooler responded that many things -- including bridge replacement or DPW snow and ice budget increases -- requires a  two-thirds vote, so this is not "singling out" social services.

Finance Chair and Select Board candidate Andy Steinberg thought perhaps the $125,000 should simply be in the routine general fund budget.   Stephanie O'Keeffe quickly responded the Select Board voted Monday unanimously that it be a stand alone article.  This reinforces the notion that we are simply "bridging the gap."

Select Board member Alisa Brewer (always a tad more forthright) added, "I will say it more aggressively:  NO!"

Even the Amherst Bulletin is aroused

No Public Safety Staff Increase

Town Manager John Musante right, Sandy Pooler, Finance Director, to his right

About the most interesting thing in Amherst Town Manager John Musante's  proposed FY15 Budget is what it doesn't contain -- an increase in staffing for either police or fire personnel.  Although if extra monies materialize he does support the hiring of one additional police officer for a downtown beat.

Interestingly in his Letter of Transmittal to his bosses, the Select Board, he does freely admit that UMass has increased enrollment 16% over the past ten years but town police strength has decreased by 10% (five officers) since 2007.

And while he champions the "sector based patrol system" no mention is made of joint patrols with UMass Police Department, recently jeopardized by a union grievance filed by one of their officers.

In calendar year 2013 Amherst Fire Department responded to 5,690 emergencies, a 3.6% increase over the previous year.  Because of the extra $80,000 per year kicked in by UMass for 2 extra ambulances on weekends, and an increase in ambulance rates the budget does call for an increase in minimum on duty staffing from 7 to 8 during the academic year.

But the Town Manager made it pretty clear he does not think an increase in staffing is warranted:  " ... and no increase in authorized staffing is necessary or recommended."

A picture is worth 1,000 words

 

Meanwhile Leisure Services (aka, recreation empire) is "level funded" at $529,299. But last year they were also pretty much level funded and still managed to lose over $300,000. 

The $20,947, 926 municipal budget is supported by $600,000 in "new growth" property taxes which indicates the local economy is on the move.  Amherst Town Meeting has final approval over the budget and will take up discussion in the spring. 

A Really BIG Deal

 Town Manager to Select Board:  "Very, very close" (to a deal)

The five year "Strategic Agreement" with our #1 client for pubic services -- UMass/Amherst -- expired June 30, 2012.   But the contract was extended for one year after former Town Manager Larry Shaffer (and his secretary) suddenly left town just when the agreement was expiring.

Town Manager John Musante told the Select Board last night that a new "partnership" was "very, very close" to being a done deal.

The previous agreement paid the town $350,000 for ambulance protection but was supplemented recently by an additional $80,000 to cover extra AFD weekend staffing to keep up with a spike in demand, all too much of it alcohol related. 

But, the previous agreement also clearly stated:  "If in the future the town vacates Mark's Meadow, UMass may reimburse the town for a portion of the net cost of educating students living in university tax-exempt housing."

The town did indeed (amazingly) close down Mark's Meadow in 2009 -- saving $800,000 in town tax monies the first year.  But nobody ever bothered to reopen the "strategic agreement" to seek reimbursement for the most expensive municipal product Amherst produces:  education.

In 2009 ARPS reported 55 students enrolled from UMass tax exempt housing, and most recently (back in March, when the Town Manager requested the current figures) the number stood at 57.

At the current cost to Amherst taxpayers ($18,388 per pupil) for our elementary schools, that alone comes to $1 million.

 Current Emergency Response Statistics.  Graph courtesy Tom Valle Secretary Local 1764

UMass also absorbs about one-quarter of Amherst Fire Department services (Umass has a police department but not a fire department) and AFD's annual budget is $4.13 million, so that's another $900,000 in UMass costs borne by Amherst taxpayers. 

In 2010 the University of Vermont (10,459 undergrads, 1,540 grad students) paid Burlington (population 42,282 with one-third of all property tax exempt) $1,100,000 or THREE times what the University of Massachusetts (21,373 undergrads, 6,196 grad students) paid Amherst (population 34,874, with one-half of all property tax exempt).

And UVM has their own ambulance service!

Therefore, no matter what the spinmeisters at UMass News and Media Relations say, anything less than $1 million per year for our "partnership" over the next five years is a bad deal.    

AFD & Town Reach Agreement (Tentatively)

 

AFD @ Orchard Valley fire last month

Town Manger John Musante told the Amherst Select Board he has come to terms with the Amherst Fire Department on a new three year contract.   The good news for all concerned is that for the first time in over 20 years, minimum staffing level would move up a notch ... to eight on duty.

But only when our three institutes of higher education are in session. Still, an improvement.

In  the early 1970s the department had a minimum staffing level of seven.  In 1976 it dropped to six and would not return to seven until 1992, where it has remained ever since.  Last year the department handled 5,490 emergency calls.

Musante was short on details since nothing has been signed, but he did indicate the union would be receiving a raise (probably 2%) and that a town approved drug and alcohol policy would be enforced.  Local 1764 will vote on the contract sometime before the New Year. 

You Can Come Home Again

UMPD units lead the UMass Marching Band up North Pleasant Street  into town center

UMass Amherst -- the flagship of higher education and the town's largest employer -- brought pomp and circumstance to the downtown this afternoon on a picture perfect fall day with an old fashioned homecoming spectacle, a perfect mix of small town parade and energetic pep rally.

 

UMass Amherst Chancellor Subbaswamy leads a cheer

Chancellor Subbaswamy promised the civic event would become an annual affair. Even better next year, because the Minutemen will actually return home to play three games at newly renovated McGuirk Stadium.  

An excited Football Coach Charley Molnar.  Afterward MC Tony Maroulis said that's his usual state.

 

Town Manager John Musante tells youthful crowd, "You're always welcome here."

Belly dancers.  My favorite float

 

UMPD officer on a majestic mount.  My daughter's favorite 

More (workin') horses

 

UMass ROTC

Business Improvement District Trolley

The Huddle Continues

John Kennedy, Kumble Subbaswamy left, Stephanie O'Keeffe, John Musante right 5/15 Town Meeting

So yeah, five months after Amherst Town Meeting approved spending $30,000 for yet another study, the 'Mega Powers That Be' have finally gotten around to forming a -- you guessed it -- "steering committee."

At this pace we should see concrete results by the next Summer Olympics.

The September 30 Public Scolding Paid Off

A New Deal

 

AFD North Station Friday morning 10/4, calm before the storm

The "5 Year Strategic Agreement" with UMass/Amherst, now well into its 7th year (expired 6/30/12), reminds me of a tech nerd who upgrades their older beloved computer using the Dr. Frankenstein approach of installing a new plug-in card or mother board rather than just buying a new computer.

UMass last year paid the town $363,718 for fire/EMT protection, mainly because UMass has its own police department (larger and better funded than Amherst PD) but not a full time fire/ambulance department.

Recently UMass coughed up an additional $80,000 to staff two town ambulances on weekends to deal with the spike in calls somewhat due to "substance abuse" calls (mainly alcohol).  So at the very least, that extra $80,000 should become a permanent part of the new-and-improved "Strategic Agreement."

The Town Manager had an excuse last year for simply extending the agreement because, after all, he was only named Town Manager in 2010; and of course there was that coup d'état at UMass that brought down Chancellor Holub in 2011, although allowing him a lame-duck extra year.

 UMass accounts for 19% of AFD calls

There's absolutely no question the extra weekend staffing is both vitally necessary and well utilized.  In fact, the 1st weekend of October, even with all the extra staffing, AFD still had to call in two mutual aid ambulances from Northampton and one from Belchertown.

 Mutual aid still required 8 times this past September, but down from an average of 15 in previous 2 years

UMass accounts for 19% of calls thus far this year. And with the extra $80K UMass pays Amherst for additional weekend ambulance coverage they will pay us a total of  $443,718 this year.  But AFD's budget this year is $4,114,438. 

So their fair share (19%) should come to $781,707. And that extra $337,989 would cover adding AFD staff on the weekdays as well.

Because it's also apparent additional staffing is needed NOT just on weekends.

 A Wednesday night delay

A Sterling Review ... Well, Almost

Amherst Select Board review of Town Manager John Musante this evening

As expected the Select Board annual review of Town Manager John Musante, our highest ranking but only second highest paid town employee, was a cordial affair with fiscal matters garnering across the board highest "commendable" ratings from all five SB members.

But a dark cloud or two appeared on the otherwise sunny landscape with the issue of dealing with the town's surplus buildings garnering  "unsatisfactory" rating from Alisa Brewer, Diana Stein, and Aaron Hayden while the other two checked off "needs improvement". 

But when referencing things that need improvement SB Chair Stephanie O'Keeffe was quick to remind the board that overall the review was "overwhelmingly positive."

The only other "unsatisfactory" rating came from Alisa Brewer for communication issues, like reading things in the newspapers before the board has been apprised about an issue.

 Alisa Brewer:  Most critical but also most effusive

She mentions "dropping the ball" with  the "Blarney Blowout" where things were reported as going well in the downtown that Saturday, but all hell broke loose in North Amherst -- not that the newspapers figured that out very quickly.

This year’s Blarney Blowout revelers well-behaved in #Amherst |  http://t.co/vbA6g9aKxs #westernma
— GazetteNET (@gazettenet) March 11, 2013

And the recent Rental Bylaw Implementation Group was announced on the pages of the Daily Hampshire Gazette before the Select Board was informed (maybe the Town Manager figures they no longer read the Gazette).

Town Manager speaking to Town Meeting in favor of Rental Registration Bylaw

The Town Manager also received high marks for his relations with the Select Board and Town Meeting, with three SB members giving him across the board highest rating and O'Keeffe and Brewer looking for improvement.

Other areas that need improvement are communications with the general public and lower echelon (non management level) town employees.  Staff morale  -- especially in the fire department and DPW -- could also be better.

The handling of housing issues, what many believe to be the #1 problem facing Amherst today, also garnered the concern of the Select Board.  Especially affordable housing.

The about-to-occur loss of Rolling Green's 204 apartment units from the town's Subsidized Housing Inventory is pretty much a disaster.  

Rolling Away

 

Rolling Green Apartments, 204 units

The Amherst Select Board seems to have simply thrown up their hands and quit the fight to maintain our 10% minimum threshold for Subsidized Housing Inventory, a vaccine against a Chapter 40B mega-housing development being shoved down our throats.

Currently with 1,035 affordable units out of a total of 9,621, the town stands at 10.8%.  Rolling Green's 204 units represent 20% of our total stock of affordable housing, so once lost the Town's overall SHI drops to 8.5%.

Town officials have known for a half-dozen years that Rolling Green Apartments would be eligible to go to market rate because their federally subsidized loans were closing out.

The 50 year old complex is currently valued at $9,119,200 so an eminent domain taking is unlikely.  Town Meeting showed little stomach for eminent domain action last spring, rejecting the idea of taking Echo Village Apartments or the "development rights" of the property in northeast Amherst now slated to become "The Retreat" student housing development.

Almost three years ago Town Meeting appropriated $25,000 for a study pretty much specifically targeting the Rolling Green situation.  With the deadline now a mere three weeks away, it would appear Rolling Green is a lost cause.

Not overly "affordable"

And clearly Select Board Chair Stephanie O'Keeffe is not happy about the pace or focus of the process thus far.




You also have to wonder how uncomfortable this makes about-to-be-displaced tenants at Echo Village feel? Their situation came on suddenly, as Jamie Cherewatti only bought the property in January and then immediately jacked up the rents.

Plus, unlike Rolling Green,  the 24 Echo Village units do not count towards our affordability index, so town officials have a little less to lose with their instant transition to market rate.  And in Amherst, "market rate" is EXPENSIVE.

The Feds lump Amherst in with Springfield when setting maximum allowances for Section 8 housing vouchers.  But since Amherst rental units are so expensive (median rent of $1,108 in 2010) those vouchers go elsewhere.  Currently only half the 400 vouchers administered by Amherst Housing Authority are used by clients living in Amherst. 

Fortunately the town recently commissioned a "Housing Production Plan" to shed light on this chronic housing problem, so the state allows a one year reprieve from an unfriendly Ch40B development.

Maybe now town officials will get serious.

Transparency Takes A Back Seat

About 80 people were invited to the B-I-G meeting between state and town officials and private landlords at UMPD headquarters this afternoon, and at least half that showed up.  Since AFD Chief Nelson and Assistant Chief Stromgren were present, I guess it's safe to assume the room was not overcrowded.

 UMPD Chief Horvath politely blocked my entrance

What did they discuss?  We will never know ... for sure.

Click white highlighted links:

 

 My friends at Masslive cover it (sort of) 

The Official UMass Spin (no wonder they did not let me in)

 Amherst Select Board Chair Stephanie O'Keeffe arrives with UMPD escort

Dean of Student Enku Galaye arrived 1st and stayed in the shadows

 

Agenda for today's meeting (courtesy of my mole)

Right side of the room

Left side of the room 1:00 PM

 

Town Manager John Musante, before the door closed

Town/Gown Peace Proposal

 Umass Amherst:  The Entity That Be

In addition to the $50,000+ in spending for extra AFD and UMPD personnel over the next six weeks to deal with off campus rowdy weekend behavior, UMass is also proposing a long-term major study costing between $50,000 and $60,000 to analyze public safety and housing issues created by the presence of our #1 employer, and how potential remedies fit into their "Master Plan".

Town Manager John Musante will be requesting  $25,000 to $30,000 from Amherst Town Meeting in matching funds for the joint town/gown study.  The money could come from the town's "overlay account," a stash of cash set aside in case property owners appeal their assessment and win an abatement.  Apparently the town has put aside more than needed.

Chancellor Kumble Subbaswamy will make an appearance before Amherst Town Meeting this spring to champion the proposal.  Since Swamy is intrepid enough to endure a night of Town Meeting perhaps -- to get a real introduction to the problems of off campus rowdyism -- he should do a ride along with APD any weekend over the next six weeks.

After all, Select Board Chair Stephanie O'Keeffe has done it as has Town Manager Musante and former UMass second in command Todd Diacon. 

UMass Comes Around

UMass/Amherst

All that bitching, errr, complaining about the abusive "Blarney Blowout" paid off as our giant neighbor to the north has agreed to most of the demands of Amherst Town Manager John Musante to help our quaint little college town deal with rowdy students from now through graduation.

Which sure beats handing out oatmeal cookies.  

Unfortunately it looks as though the expanded hours on weekends for UMass Health Services to deal with all the drunks probably is not going to happen.

And yes, it's great UMass has agreed to fund two AFD ambulances.  But the problem is not who pays for the ambulances, it's that we can only put five on the road at one time.  And there have been times when five was not enough.

Can we maybe get UMass to fund two more additional permanent professional firefighters?

 AFD call volumes since 1975

UMass Office of News & Media Relations reports

The Cover Up Continues

In his FY14 budget Letter of Transmittal to his bosses the Select Board, Town Manager John Musante writes, "The 9-hole Cherry Hill Golf Course budget increases by $2,465 (+1%). In addition to offering one of the best values in Western Massachusetts it will expand its winter programming as well as introduce a disc golf program. The golf course will cover its operating and employee benefits costs entirely from user fees."

Hmm ... maybe the Town Manager needs to look up the definition of "entirely".

First of all, according to his own figures, the $2,465 increase is a 1.6% increase over last year's budget, so it would be more correct to round up to 2% rather than down to 1%.

Second of all, according to his own figures, the golf course is "projected" to intake $268,000 against semi-total expenditures of  $277,629  ($240,100 operating and $37,529 employee benefits).  In the red by almost $10,000 or $9,629 to be exact.  Thus the user fees do not entirely cover overhead.

Now I use the term "semi-total expenditures" because those two overhead costs combined leave out one other important cost of doing business in the expensive world of golf:  capital equipment. 

And in FY14 that comes to another $26,654 in lease payments on two mowers, or a grand total of $304,283 against an overly optimist projection of $268,000 in revenues, or a loss of $36,283.

Of course the real problem is the Golf Course will not take in $268,000.  In FY12 , for example, they were "projected" to intake -- guess what? -- $268,000.   But, according to the Town Manager's figures, only managed $242,569.

That year total expenditures with employee benefits and capital came to $283,106 for a loss of over $40,000 or $40,537 to be exact.

Interestingly last year the capital request spreadsheet for the golf course showed a projected total of $135,654 in FY14, the two movers plus $24,000 for a fence and $85,000 for parking lot resurfacing. 

Last year's Cherry Hill five year plan

Those two expensive items have simply been shuffled into the near future along with another BIG ticket $60,000 item, Irrigation Pond Dredging.

Even by fudging the figures Cherry Hill does not "cover its operating and employee benefits cost." And the expensive capital items -- entirely paid for by taxpayers rather than "user fees" -- over the next five years average $50,000 annually.
   

And that alone would cover the cost of one badly needed police officer or firefighter. 
  

This year's five year plan