RUSSELL – Russell was the final town to hold its Annual Town Meeting on Monday, and any hopes of changing the way town assessments would be calculated for the next five years rested on its citizens. Blandford, Montgomery, Middlefield, Huntington, and on Saturday, Chester had all voted on above-minimum assessments that would be tied to the Gateway budget increase, which cannot exceed 2.5%, instead of the traditional, statutory method which increases or decreases towns by the March 1 student census, which can vary widely from year to year.
Residents at Russell Annual Town Meeting prepare to take historic vote. (Photo by Amy Porter)
For Russell it was the hardest call of all, because uncharacteristically the town’s student census had decreased by 26 students in March, and the statutory assessment would have meant a decrease of $97,000 in their assessment this year. With the amendment , their assessment will increase by a little more than $40,000 over last year, a swing of $137,000.
The only other town that would have fared better this year by the old assessment method was Blandford, which approved the amended assessment last month, costing $80,000 more.
Chester, on the other hand stood to gain a great deal by the amended assessment this year. Due to an increase of 18 students in the March census, the town faces an increase of $164,000 in the traditional statutory assessment method. If the alternative assessment passes all the towns, that increase is reduced to $30,000.
In order to help persuade Russell to join the towns in the vote, residents in Chester voted on Saturday to pay $40,890 in additional funds to Gateway to offset Russell’s assessment, contingent on Russell passing the amendment.
During the discussion on the floor, Russell Finance committee members, officials from other towns, and Dr. David B. Hopson, Gateway Superintendent all spoke in favor of the amendment. Most of those who spoke have been meeting for eight months to try to find a better way for the towns.
Chester Finance committee and Hilltown Collaborative chair Andy Myers talked about the meetings he and officials from six towns attended at Gateway and with other rural school districts. Myers said for the last two or three years, the Gateway school budget failed, which proved to be very disruptive to the district. “We need to stop that slide,” he said.
Myers said that one of the reasons the budget failed is that for small towns it’s very difficult to plan for the budget when they have to wait until the March 1 census to know how their town will be impacted. He said the plan came together to equalize the assessment for the towns, using as a starting point for each town an average of the last five years of assessments.
Russell Finance committee member Derrick Mason said the Finance Committee took a vote earlier in the evening on Monday, and voted unanimously in favor of the amendment.
“I’m in favor of it,” agreed Russell Finance Committee member Ruth Kennedy, who was unsure leading up to the meeting, acknowledging that the town’s swing was really big this year.
“The state demands we bus, but doesn’t pay for busing. The state demands we have vocational education, but doesn’t pay for it. The only thing we can do is join this collaborative,” said Russell resident Bill Hardie.
Officials from visiting Gateway hilltowns wait to speak in favor of the amendment at the Russell Town Meeting.
Hopson said this is the first time all six towns came together. “This really makes it possible to plan,” he said. Hopson also said the census numbers have already changed for Russell since March. “If the census were to be taken today, that amount would be the same as last year,” he said.
Russell resident Brenda Marra asked what if another town next year had a higher assessment and decided not to vote for the amendment. Hopson acknowledged that anything other than the statutory method is required to be voted by all six towns every year.
“I won’t say this is perfect, but we are trying to work together as six towns,” said Huntington selectman Darlene McVeigh. She added that for Huntington, the amended assessment this year is $45,000 less than if the statutory assessment goes through. McVeigh also said that since Worthington withdrew from the district, Gateway’s assessments to the six towns have increased by $742,000, and of that Huntington has paid 60%. “Huntington can’t afford huge increases. We can’t plan. If for five years we can stabilize the assessments for all six towns, I can plan,” she added.
Mason said the fact that the amended assessment must be voted unanimously over the next five years binds the six towns together, requiring them to negotiate up front. “We have ‘assurances’ from DESE (the Department of Elementary and Secondary Education) that they will work with us. The other upside of pursuing this change in methodology; there are serious issues with unfunded mandates. We need to work as a six-town team,” Mason said.
Mason said another issue they plan to work together on is the MSBA (Massachusetts School Building Authority) “clawback,” which he said is the MSBA requirement that towns continue to repay loans on school buildings that are no longer in use. For Russell, that payment will begin this year after Westfield ends its lease with Russell Elementary School.
“We’re hoping this will give us the first shot we’ve had. The important thing is we’ve got this structure in place,” Mason said.
John Baldasaro, chair of the Chester Select Board, introduced himself as having served on the board for 25 years. “Historically, (Chester) has turned down the Gateway budget the most of any town. We did not feel we were part of the process. Last year, Russell was hit by a large increase, and we turned the budget down for Russell not getting a fair shake. After that, we sat down, found some common ground, and found a way to look at the budget. For the first time in my 25 years, a 1.9% increase was reasonable,” he said.
Baldasaro went on to say that in the old assessment method, towns were penalized for having kids move into town. “This is a once in a generation opportunity,” he said, stressing that DESE made an exception by allowing the Gateway towns and district to amend the assessment without first going through the process of changing the regional agreement.
“If we do this and take a shot for five years, there are programs that will grow Gateway; if we work together and leverage our strength together. This is a window of opportunity to build something better,” Baldasaro said to applause in the meeting.
The only speaker against the plan was Russell selectman Keith Cortis, who said he has served eight years on the board, and is opposed to the amendment. “I’ve watched the Gateway budget go up every year. The Gateway budget is now 66% of the town budget. If Gateway goes up 2%, then all of the towns go up 2%. This is no different than a Prop 2 ½ override. Last year, the town of Russell got hit by a $196,570 increase. With the old statutory method (this year), we would have dropped $96,000. Instead we’ll pay $41,000 more,” Cortis said, adding, “If you want tax relief, you need to vote No on Article 9 and 10.” Cortis said the increase to the town would be $1.34 per $1,000 valuation.
“You have to think of the future, and not just right now,” responded resident Virginia Hardie.
Kennedy said it was true that with the new method, taxes would increase by $1.37 per thousand, and would only be $74,000 below the levy limit. “I’m for it, because I know everybody is working together,” she said.
The amended assessment then passed by a solid majority vote. Article 10, the actual assessment this year was amended to raise and appropriate $2,219,215 for Russell’s total assessment to Gateway, and to transfer the amount of $40,890 from Free Cash as suggested by Hopson, who said the Free Cash would not be necessary when Chester’s offset is applied to Russell’s assessment.
