Tough choices in Easthampton: $6.9M override or deep cuts

EASTHAMPTON — Residents will be asked to vote on a $6.9 million Proposition 2½ override at a municipal election in June, in an attempt to balance a $6.4 million deficit entering next fiscal year.

Mayor Salem Derby informed the public of this request at a press conference Thursday afternoon, standing beside more than 20 city employees and elected officials. The override question will be proposed at a municipal election on Tuesday, June 9. While nothing has been determined if the override fails, such a result would be “devastating” to city services and education, Derby said.

“We’re asking to fund the city that we know and love,” said Derby, flanked by city and school officials in front of Nashawannuck Pond. “If the override fails, we (will have to) cut, and I want to be honest about what that means. It means severe reductions to the school budget, it means cuts to public safety operations, it means reduced services to the most vulnerable residents of our city.”

Derby said the city will now prepare two budgets — one assuming the override passes, and another version if it does not.

The median assessed property for Easthampton homeowners is $418,000 this year. Based on that value, if the override passes it would increase property tax bills by approximately $1,199 a year. That equals $99 a month, or $3.29 a day.

“It’s a genuine hardship, and I acknowledge that without qualification,” Derby said about that amount. “What I will tell you is what $3.29 a day protects — it protects our schools, it protects our fire department, it protects our police, it protects the roads you drive on, the senior center and the public health services that every one of us depends on.”

Derby said the $6.4 million deficit is driven by two main factors. The first is rising special education and student transportation costs, including bus contracts and out-of-district placements.

The second is employee-related expenses — health insurance, retirement contributions and post-employment obligations — which he said are increasing by more than 6% annually.

“This is not unique to Easthampton. Every municipality in Massachusetts is grappling with the same pressure, but we cannot wish it away,” Derby said.

Neighboring communities also facing overrides this spring include South Hadley, Hadley, Southampton, Westhampton and others. Derby noted that Easthampton currently has the second-lowest residential tax rate in the region and if the override passes, that rate will still be lower than several neighboring communities.

However, the mayor said that the $6.9 million override is not a long-term solution. He said a recently established budget task force, consisting of several city officials, estimates that over the next two years the city would need approximately $8 million to close the deficit and also provide stability.

Derby said the $6.9 million ask seeks to provide current stability while being a reasonable request for community members.

“Why 6.9 million? Because we’re not just fiscal technicians, we’re your neighbors,” Derby said. “We understand what it means to be asked for more money right now. We understand that costs are up everywhere, at the grocery store, at the gas station, in your rent, in your mortgage.”

To address the additional $1.1 million shortfall not covered by the override, Derby said the city will examine line items across all departments, though he said few savings remain without difficult choices.

“The city has already started the process and there is not much excess to trim,” Derby said. “The easy cuts were made long ago. What remains are hard trade-offs and we will make them thoughtfully and transparently.”

School Committee member Sam Hunter said in an interview that while no decisions have been made, if the override fails, schools would likely have to consider cutting items deemed “nonessential,” such as athletics, theater and music.

Moving forward, Derby said the city is going to pursue as much state aid as possible. In an effort to control spending, the mayor has extended the city’s hiring freeze put in place last year, and also issued a spending freeze earlier this month.

Williston partnership?

Additionally, Derby told the Gazette he is exploring a partnership with the Williston Northampton School that could bring additional income to Easthampton.

Derby said he met with Williston Head of School Robert W. Hill III and another school representative at the end of March to present the proposal. Williston did not immediately agree to it and since the meeting, said it would not meet again until August to discuss the proposal further, according to Derby.

“I proposed a strategic partnership, really acknowledging the fact that Easthampton’s success is going to have an effect on Williston and vice versa,” Derby said.

The proposal, which is modeled after the University of Massachusetts Amherst agreement with the town of Amherst, asks Williston to commit $400,000 to Easthampton over the next three years, starting at the beginning of next fiscal year. Williston is a tax-exempt institution according to the proposal, and Derby said the agreement would ask for a small portion of the amount Williston would be taxed for, if not exempt.

In an email to the Gazette, Williston spokesperson Ann Hallock said Hill met with Derby as Williston does with new mayors and the school will continue to be in contact with the mayor, but it is too early to make a decision on the proposal.

“Given the scope of the issues raised, it is too soon to speculate about outcomes or timelines, especially given that the school is mid-cycle in its budget planning and preparing to welcome a new Chief Financial Officer in July,” Hallock wrote.

Derby said looking at the UMass and Amherst agreement, along with Mount Holyoke College’s recent commitment to give $3 million to the town of South Hadley over a 10-year period, this agreement could be another effective way to bring income to Easthampton.

“Williston Northampton School has been a cornerstone of our community for generations,” the proposal states. “As a tax-exempt institution, the School benefits from the full range of municipal services, public safety, infrastructure, economic vitality and civic investment that Easthampton residents and taxpayers fund … This agreement is an opportunity to formalize and strengthen that mutual relationship.”

Moving forward, the City Council will hold a special meeting on Monday at 6 p.m. at the Municipal Building to discuss next steps.

“We just heard it all together so now we have to figure out what this is going to look like,” Council President Koni Denham said in an interview after the press conference. “One of the things that I’ve always appreciated about Easthampton is its economic diversity, and I think this is going to make that a more challenging reality for some residents.”