Mayor Richard A. Cohen has proposed a fiscal 2013 budget that is based getting about $23 million in aid from Massachusetts.
AGAWAM — Mayor Richard A. Cohen has developed a proposed fiscal 2013 budget of $77,385,217, a spending plan 5.2 percent, or $3,837,587, more than this year’s budget.
Cohen sent the proposed spending plan to the City Council. It is empowered to make cuts, but may not add anything to the proposal. The council has until July 1 to put a budget in place, otherwise Cohen’s plan takes effect.
The mayor’s proposed budget is balanced and does not call for any layoffs.
Cohen’s proposed spending plan also allows for a School Department budget of $36,488,490, the amount of spending for next year recommended by the School Committee. That proposed School Department budget reflects an increase of about $2 million, or 5.9 percent over this year’s school spending. The School Department spending plan is a so-called “level of services” budget, meaning it would keep the current level of services.
Cohen’s proposed budget is based on about $23 million in local aid from the state. He anticipates the city will receive about $4.4 million in local receipts and approximately $50.6 million in money collected in property taxes.
“I’m trying to be cautious. I don’t know what the new year will bring,” Cohen said Monday. The mayor pointed to uncertainty over how much FEMA will reimburse the city for about $6 million in damage from the Oct. 29 snowstorm. He is hoping for 75 percent reimbursement from the federal government and as much as 25 percent from the state.
His budget calls for using $1,250,000 in free cash, which should still leave about $4 million in the free cash account.
The spending plan calls for a total of $3,247,555 to fund Town Hall departments including the Mayor’s Office, an increase of 6.7 percent.
Proposed spending for police, fire services, emergency management and inspection services as well as street lighting costs totals $8,858,316, an increase of 5.2 percent. The proposed budget for the Department of Public Works comes to $4,851,962, an increase of 6.9 percent.
“The fact that we will be able to avert layoffs and massive service cuts to municipal and school services within this budget is no small feat,” Cohen wrote to the council in his budget message in the document. “The cooperation of everyone is needed in difficult times and is crucial in guiding our town through these fiscal challenges. However, continued cooperation is and will be needed as we move forward in order to minimize the impact of the economic recession on our taxpayers.”
The spending proposal got a boost from so-called new growth, or increased value to the city’s property tax base, of about $2.7 million. Cohen said much of that was due to work by Western Massachusetts Electric Company setting up new power towers.