Amherst confluence of four committees Finance Director Sandy Pooler crunched the numbers for next year's (FY12) operating budget tonight at a joint meeting of the Finance Committee, School Committee, Select Board, and Library Trustees (affectionately known as "The gang of four"), and--in spite of the sputtering economy--the outlook was rosy as long as the spending increases keep to 2.8%, enough to provide level services.
The town finished the year with a $1.1 million surplus, which reverted to Free Cash. Total reserves (Free Cash and Stabilization) now stand at $5.6 million--not counting the cushion (around $1 million) in the Amherst Regional School's "Excess and Deficiency" savings account.
While the state is usually portrayed as the skunk in the room, an extra supplemental appropriation of $514,000 coming in for FY12 spruced up their bad guy image among town officials. The local option hotel/motel and meals tax tallied a handsome $495,000 in FY11, up $150,000 from the previous year--and with the historic Lord Jeffrey Inn coming back on line soon, that amount should go up even higher in FY12.
The property tax is of course far and away the town's main revenue source, contributing 63%, with state aid a distant second at 20%. And within that property tax, the disparity between commercial and residential continues to be an embarrassment.
In the current fiscal year residential taxpayers contribute 91% of the tax base compared to commercial/industrial at a pathetic 9%. In 2002 it was 89% residential to an anemic 11% commercial/industrial.
Half of Amherst is owned by
tax exempt entities: Amherst College and UMass coming in at #1 and #2 respectively, with the town itself #3 (mostly conservation land) and Hampshire College #4. UMass makes annual
Payments
In
Lieu
Of
Taxes of $325,000 for Fire and Ambulance protection, Hampshire College does not. Amherst College kicks in $100,000 every now and then.
Town Meeting will vote next month on a couple of warrant articles that could help turn around that dismal commercial/residential ratio by stimulating commercial smart growth development. A $40,000 appropriation for a townwide housing marketing study but with particular emphasis on the Gateway Corridor area for a proposed commercial mixed use project, and Form Based Zoning in the North Amherst and Atkins Corner Village Centers.
Of course Town Meeting is also one of the main factors in stonewalling development of any kind as the BANANAs (
Build
Absolutely
Nothing
Anywhere
Near
Anything) can usually muster the 34% minority vote required to kill a business friendly zoning change.