Fee hikes in works for cash-strapped towns

Report 5-17-09

Laura Crimaldi
Sunday, May 17, 2009

Municipal officials across the state, scrounging local coffers for revenue, are proposing hundreds of thousands of dollars in hikes on fees, fines and permits for everything from marriage licenses to penalties for false home alarms.

The fee hikes are coming on top of layoffs, furloughs, wage freezes and service cuts intended to cope with falling property-tax revenues and drastic cuts to local aid.

“Communities will be forced to turn to other areas like trash and bus fees,” said Geoffrey C. Beckwith, executive director of the Massachusetts Municipal Association. “Even with these fees and other actions, the local-aid cuts are so deep that the real way to deal with this is massive layoffs and reductions in services.”

Local aid and property-tax revenue are the main sources of revenue for cities and towns. Both have been in freefall since the global economic crisis has set in.

Last July, state aid to localities was funded at $1.3 billion, but Gov. Deval L. Patrick cut $128 million from the account in January. The final House budget approved earlier this month funded local aid at about $1.1 billion. The Senate proposal outlined last week funds local aid at about $830 million.

An informal survey of Bay State communities found the following fee hikes on the way or under consideration by local officials:

Brookline estimates it could generate $130,000 in revenue by hiking a marriage license from $35 to $40, a business certificate from $50 to $75, and a Zoning Board of Appeals application from $225 to $350, said Town Administrator Richard Kelliher.

Newton will bring in an extra $115,200 beginning June 1 when it starts issuing parking permits to 120 local business employees who want to park all day at meters in municipal lots. The permit will cost $960 a year, said Board of Alderman Clerk David Olson.

Somerville will collect an additional $250,000 by hiking fees on 37 licenses, including dog licenses, vital records and taxicab medallions. Fees tacked onto late tax, water and sewer bills also will go up, city records show. Later this month, alderman will consider a measure to increase parking fines.

Worcester estimates $500,000 in new revenue by increasing fees for licenses, certain types of building permits and a $5 hike in parking fines on all tickets currently less than $50, city records show.

Swampscott expects to bring in $5,000 with a new false-alarm bylaw for burglar alarms. A fine of $60 is to be assessed on the third offense and every false alarm after that in a calendar year, said town accountant Dave Castellarin.

Medfield will raise $80,000 by hiking the fee on unpaid property taxes from $5 to $25, said Town Administrator Michael J. Sullivan.

Sunderland estimates $25,000 will be raised if all demand fees go up. The town is planning to enforce bylaws through civil means that will generate revenue from fines, Town Administrator Margaret Z. Nartowicz said by e-mail.

Chelsea is considering fees related to fire services to pay for improvements on its aging fleet, but nothing has been decided, City Manager Jay Ash said by e-mail.

Municipal officials complain the fee hikes are coming before major reforms to health care costs, which are obliterating local budgets.

“When cities and towns are pushed so much, it’s hard to accept that at the state level no factor dealing with employee health insurance is negotiated,” said Samuel R. Tyler, head of the Boston Municipal Research Bureau. “At the local level every factor is negotiated.” Tyler cited a report by the Financial Advisory Committee in Somerville. It found that if no changes are made to employee and retiree health benefits in time for next year’s budget, higher health insurance costs will consume the entire amount of tax revenue growth allowed under Proposition 2 - some $2.3 million.

Bernabei, Graham, O'Reilly, Carr, Siciliano