During my first five months serving on Council I have learned a lot about how our city government operates. Mayor Skinner and Councilmen Crupper, Gabbert, and Wilson have been invaluable resources due to their prior experience serving. All have been gracious and patient with me while I’ve familiarized myself with the variety of issues facing Williamstown.

When Mayor Skinner recently asked me to serve on the 2013-14 Budget Committee it was the first time my input was solicited for any budget process. After our first meeting I knew I had a lot of information to digest…which included understanding the implications of the budget line item PILOT.

PILOT is an acronym that stands for “Paid In Lieu Of Taxes” which is best described as an “interfund transfer”. It accounts for dollars projected to be transferred from one fund to another to cover a shortfall in projected revenue over projected expense. I learned PILOT transfers are not anything new as previous councils/mayors have typically used funds from electric, sewer, or water to subsidize the City’s general fund in paying for non-revenue producing services. Many of you may have already known this, I did not until I was elected to Council.

I believe this practice has to stop because it encourages the increase (or at least prevents the decrease) of utility rates. I ran for council mainly to do something about rising rates. When campaigning many residents I spoke with felt the same as I, that something needed to be done particularly regarding sewer. It is apparent to me PILOT transfers are the impediment.

Before my election I was under the impression utility rates covered a resident’s usage plus the cost to maintain/repair infrastructure. This is not the case. Understand part of the City’s utility rates may be helping to pay for items such as police/fire protection, street/park maintenance, as well as administrative services.

These general fund items are important. But in looking at past budgets and the proposed budget for 2013-14 it is easy to see more is being spent on them than is taken in. Utility fund profits are making up the difference. Some do not see this as a problem but I disagree. The debate Council should be engaged in is how to balance the general fund without using PILOT transfers from the utility funds. I feel utility rates could be lowered as a result and that would benefit all residents of Williamstown.

I encourage residents to contact Council members and the Mayor’s office to discuss the impact of PILOT transfers on City of Williamstown taxpayers.