2010 BUDGET UPDATE

I have been meeting with the Select Board and the Finance Committee to discuss the proposed Town of Amherst budget for the period July 1, 2009 to June 30, 2010. As you may know, the projected revenue from the Commonwealth has been reduced by $2,800,000. That dramatic reduction requires the Town to implement steps to meet that funding gap. Those steps include funding social service programs from the Community Development Block Grant fund and not local property taxes; it includes increases in fees for Leisure Services and Supplemental Education (LSSE) programs; it includes increases in ambulance fees for individual users and the towns of Hadley, Leveritt, Shutesbury and Pelham; it includes reorganization and potentially regionalization of the Police Communication and Dispatch Center; it includes the elimination of five positions in the town budget. Certainly, there will be more changes that need to be made. However, I am doing my best to reduce the need to lay employees off.

I have sent a letter to the three unions currently under contract with the town. I hope to have a conversation about the contracted Cost of Living Adjustment (COLA) of 3 1/2% scheduled for implementation on July 1, 2009. The reduction or elimination of the COLA would go a long way to resolving our budgetary problem for next year. In order to show leadership and to set an example, I will not accept a COLA for next year. Further, the town department heads have stated that they would be willing to accept a COLA adjustment less than previously committed consistent with the school administration. I am pleased and proud of the position that the department heads have taken.

I have been invited to participate on a weekly radio show with Jay Fedanza of WHAI of Greenfield, Massachusetts. The spot will run weekly on Tuesday morning. The show is designed to highlight the various activities of Amherst for the previous week.

Finally, it looks as if I will have my left hip replaced on June 15, 2009. I had the right hip replaced in 2004. I am hoping for same terrific results-----higher mobility and no pain.

Have a great weekend.

Larry

BUDGET DISCUSSION IN AMHERST

It has been very interesting and telling to observe the discussion over the proposed Town of Amherst budget and the effects of the loss of State Aid ($978,000 for 2009; $2,800,000 for 2010). There are those who are pleased to understand that draconian cuts are not the exclusive option available to the Town to address the severe shortfall in revenue. As a result of some very wise decisions in the past, the Town now has the option to employ revenue it has generated from grants and the independent health insurance trust owned and operated by the Town. I will continue to look for strategic reductions that do not appreciably impact the ability of the organization to deliver services. I will also continue to work very hard on developing alternative revenue sources which have already generated over $400,000. for next year. Leisure Services and Supplemental Education (LSSE) Department has implemented dramatic changes in the number of programs and how those programs are administered. Specifically, LSSE has reduced staff by one position and increased revenue for programs by over $181,000. The Fire Department has also seen an important increase in revenue of over $200,000. These increases in revenue are a result of the investment that the Town has made in capacity and is the reason why Amherst has more options going forward to address our budgetary challenges.

The Winter Fest at Cherry Hill Golf Course last weekend was great. The weather was fantastic and the community responded with great attendance. It was wonderful to see the community enjoy this tremendous asset.

Town Budget - Part 1

Consistent with the Town Act that requires the annual submittal of the Town of Amherst budget by January 16th, I have forwarded to the Select Board and to the Finance Committee the Fiscal Year 2010 (July 1, 2009 through June 30, 2010) the proposed budget for the Town of Amherst General Fund (Police, Fire, DPW, Health and other departments), Solid Waste Fund, Water Fund, Sewer Fund and the Transportation Fund. The proposed General Fund budget complies with the recommendations made by both the Select Board and the Finance Committee. If you are interested in the details of the budget, please go to the Town of Amherst web site www.amherstma.gov. I am deeply appreciative of the tremendous effort made by staff to prepare the proposed budget. The next step will be to receive and take steps to address the anticipated cuts in revenue certain to come from the Commonwealth for both the present fiscal year and the next fiscal year. More than ever, the Town must stay positive and creative as it meets this new challenge.

The skating rink has been created at Kendrick Park and is ready for use. Nothing gives me greater pleasure than to see people skating in Kendrick Park. Many thanks to the hardy crew at the DPW who installed the rink.

Tomorrow is the Martin Luther King Birthday Breakfast at the Amherst Regional Middle School at 8:30 AM. It is an honor to be able to celebrate this great man of courage and conviction.

HOLIDAY SEASON IN AMHERST

Town Hall is closed today (December 19, 2008) in anticipation of the considerable snow and wind predicted. The decision to close was strongly influenced by the experience from last year when the Town, School, University and Amherst College all shut down mid day during a snow storm, releasing all their employees at the same time causing massive gridlock on Route 9. The Town could not get its ambulances back from the hospital and the plows could not move in Hadley. This year, the Town, University, Amherst College, Town of Hadley and the School District all communicated and coordinated their responses to the anticipated snow storm thereby avoiding the problems of generating significant traffic in the teeth of the storm.

The Town of Amherst and the Town of Hadley have come to an agreement in principle for the provision of ambulance service by Amherst for the people of Hadley. The discussion was at times difficult but important. Total revenue in fiscal year 2010 should be approximately $400,000.00 for just over 700 ambulance calls to Hadley. That revenue along with the stability that a three year agreement provides, allows Amherst to adequately plan and prepare for the
future needs of the Amherst Fire Department. I appreciate the Town of Hadley for all the hard work it invested in making this partnership work.

I attended the Holiday Party hosted by Chancellor Holub of the University of Massachusetts Amherst. It was a great event. The University is facing extremely difficult budgetary issues. It would be naive for the town to think that those budgetary challenges will not affect Amherst. It is important that Amherst support the University as it takes action to meet the budgetary challenges.

I met with Tony Marx, President of Amherst College on Thursday, December 18th. President Marx and Amherst College are also facing considerable challenges that would have been unthinkable six months ago. But the world has changed and even those institutions with the greatest resources have been rendered cautious by the recent economic crisis. Given that, I am very impressed with President Marx's commitment to fully pursue the Lord Jeffery Inn renovation next year.

Best wishes to all of you for a wonderful holiday.

THANKSGIVING

With the recent passing of Thanksgiving, it is time to say thank you to those who made this
year 's celebration one to remember. Over the last decade, Nancy Pagano, Director of the Amherst Senior Center, has organized and conducted a Thanksgiving Day feast at the Bangs Center. Nancy, along with her many terrific volunteers, prepares a wonderful Thanksgiving Day feast for those who can not get out of their homes and for those who have no place to go for the day. To give of her time and to make this incredible effort speaks volumes to her commitment to the community. So Nancy, thank you for showing us the true meaning of Thanksgiving.

I am also grateful to Susan Strate of the Donahue Institute of the University of Massachusetts Amherst. Through her hard work and advocacy, the Census Bureau has approved a challenge to the Town of Amherst census count for 2007. Consequently, the Town of Amherst has increased it's total population to 35,967 or an increase of 1,687. The increase is a result of changes in the group quarter counts. The increase should help in those formulaic grants contingent upon population.

The Fire Department has recently received very exciting news about a grant in the amount of approximately $250,000.00. That funding will be utilized, in part, for fire safety and fire prevention enhancements. I am grateful for Chief Hoyle's efforts to secure this important grant.

Have a great weekend.

Larry

AROUND TOWN - NOVEMBER 22, 2008

I have been meeting with large downtown property owners to discuss the advantages of creating a Business Improvement District (BID) for downtown Amherst. A BID is designed to provide supplemental services to members of the district. The members of the BID decide the supplemental services needed and manage the cost and delivery of those services. BIDs have been around a long time and traditionally have been used to coordinate and enhance marketing, cleanup, flowers, beautification and special events. Ann Burke, from Western Massachusetts Economic Development Council, has been assisting in this effort. Jerry Jolly and the PDA have encouraged the study of the cost and benefits of such a program. I am also deeply appreciative of the financial and technical support provided by the Main Street Initiative team of the Massachusetts Department of Economic and Community Development.

I have been meeting with the Amherst department heads to plan and review tentative budgets for the fiscal year that begins July 1, 2009 and ends June 30, 2010. I have been very impressed with the many solid ideas that the department heads have created for expense reduction or revenue enhancements. However, I am not terribly confident that a budget can be produced without significant changes in the services provided.

I met this week with representatives of the six social service agencies that receive cash contributions from the town budget. We agreed that we needed to plan for a reduction in the town's contribution and that as a partner, the town was committed to working with our partners to develop a plan that will be responsible. We plan on meeting again next week with the representatives of the six social service agencies to continue to plan for alternatives to the cash support provided by the town.

I had the pleasure to serve as a presenter at the Amherst Rotary Auction conducted last weekend. I was very impressed with the dedication of Rotarians to generate funds for needy charities. What a great organization!

Questions and Complaints

I have had a number of questions regarding how to move forward on questions or complaints posted on either the blog or the town web page. The best way to receive a response is to contact me directly at 413-259-3002. I have been trying to respond to those who post a question on the blog but have been blocked by the system from communicating directly to them.

I hope to hear from you soon.

Larry Shaffer
Town Manager