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North Adams' DOR Review Completed
NORTH ADAMS, Mass. — The Department of Revenue has concluded its review of the city's financial management. The study was undertaken at the request of Mayor Alcombright after his taking office this year.
The report, not surprisingly, urges the city administration to come up with some long-term strategic plans to improve the financial structure. Other findings include "the most precipitous decline in population of any community in Berkshire County" that bode ill for its financial health, according to a summary letter from the mayor, who is expected to discuss the findings at Wednesday's City Council meeting.
The meeting was delayed a day to accommodate the Tuesday primary, during which City Councilor Gailanne Cariddi was elected the Democratic nominee for 1st Berkshire District. The council may also touch upon the replacements process for Cariddi, who will take her new seat halfway through her current council term.
Also on the crowded agenda is request to revise the classification and salaries for the new commissioner of public works and two related positions and discussion of the takeover of the water treatment plant; amendments to the fire scale compensation plans; the appointment of Russel Durant to the Housing Authority, and the application of a taxi license for Kevin Delisle to drive for Lori Smith.
Among the review's findings was:
• The city's equalized property values per capita in 2008 were 34 percent of the state average of $165,919.
• The per capita income was $14,668, the ninth lowest in the state.
The DOR also looked over the responsibilities of the financial officers, coordination among boards and the performance of financial operations.
The city has been dealing with a massive budget caused by reductions in state funds and an agreement with the public unions on fully funding the health insurance plan. Special legislation was filed to allow the city to dip into land account reserves to reduce the budget gap, leaving it with limited cash assets.
The mayor said his administration has pushed forward with developing advisory and semi-autonomous economic groups; created a "Finance Team" and encouraged the Finance Committee to actively engage over the budget; made changes to budgeting, including building around revenues; and developed regular meetings between department heads to discuss cost savings. The DOR has recommended that these procedures be adopted as ordinance.
"[The director of accounts] commended this administration for the bold and tough moves that we made while dealing with our budget even as we face a structural deficit for FY2012 of over $1 million dollars," wrote Alcombright.
The report has 30 recommendations, including adopting long-range planning processes; consolidating operations; establish an audit committee; and review and revise the city's classification and compensation plans and review personnel ordinances and create an employee handbook.
It also advises reconsidering benefits for part-time board members — specifically insurance benefits — currently enjoyed my a number of board members. The benefits were adopted many years ago when medical insurance was far less costly than it is today. The discovery of the benefits during this particularly painful financial crisis has enraged a number of citizens who say their taxes shouldn't be raised to overly benefit others.
Alcombright said several months ago he wanted to work on the issue but because of the budget's June 30 deadline, it was too late this year to tackle the matter. It also, he said, would be unfair to peremptorily dump people off insurance to which they were currently entitled.
