PITTSFIELD – Over objections from local businesspeople and community leaders who said the position was needed and valuable, the Pittsfield Town Council accepted the 2001 budget Tuesday night, which eliminated the economic director’s position in four months.

Citing cost-cutting efforts, proponents of the budget voted to phase out Sylvia Hudson’s job in favor of a twice-a-week consultant after May 1.

Several business people said that Hudson’s assistance had been invaluable to their success, according to Town Manager Dwight Dogherty. Planning board member Tina Bernier, who also served on the town’s comprehensive planning committee, said there was too much work to be done to rely on a consultant.

The council was adamant, said Dogherty, with only Councilor Robert Stackhouse voting against the budget. Councilor Tim Nichols was unable to attend the meeting because of a work requirement, but he asked Stackhouse to read a letter in which he condemned the council’s personal attack on Hudson at recent budget workshops. In his letter, Nichols requested that the economic development issue be closely monitored and revisited before May 1.

Dogherty said Nichols’ letter apparently had no effect on the other councilors.

During the public hearing phase of the $2.3 million budget, Dogherty said the only comments were those made in favor of retaining Hudson and the director’s position. By cutting back the job, the town will save $2,311.

According to Dogherty, $150,000 will be taken from undesignated surplus to lower taxes. Assuming there will be $974,391 in revenues in 2001, Dogherty said the amount to be raised through taxation is $1.4 million. “There is no indication the tax rate will change,” he said Wednesday morning, “but a lot will depend on valuation.” The current tax rate is $24.30 per $1,000 of valuation.

“We know that the SAD 53 budget from January to June 30 will be about $1,000 lower per month,” he said. With an estimated increase of $30,000 in county taxes offset by $31,839 in increased tax payments, “it all evens out,” he said.

Dogherty said the town will be in very good shape fiscally if the proposed 6 percent increase in general purpose aid to education, proposed by the state Legislature, is passed. “That will really affect us in the second six months of next year,” he said.

One budget item that is still unclear, said Dogherty, is what will happen to the Public Safety budget when union negotiations are complete.

The current contract with the Teamsters’ Union expires Dec. 31, and the union has notified Pittsfield that it will no longer represent the five police officers and three dispatchers.

That old contract will remain in effect, said Dogherty, while a new one is negotiated with a new union, which has yet to be confirmed. “We won’t know the effect of this until we go through negotiations,” said the manager.

In other business, Dogherty reported to town councilors that by investing the George M. Parks Fund in “the bluest of the blue chip stocks,” the fund has grown over the past several years from $33,872 to more than $100,000. The fund is required to “assist the town’s most needy,” according to the terms of Parks’ will.

“The annual dividends,” Dogherty reported, “are contributed in an annual amount of $4,500 to Kennebec Valley Community Action Program social services division, and, in turn, are leveraged to provide counseling services to clients residing at the Families in Transition home at 20 Nichols St.”

Dogherty explained that if the town does not expend the annual income, the state can take the funds, as the income would not be expended for the established purpose of the trust.

He has suggested creating a small loan fund, that could serve general assistance clients who need a small amount of money for a short period of time and who would like to pay it back, such as for filling a medical prescription.

The council also:

. Awarded the town’s custodial contract to Irene and Russell Leighton, who operate Clean Sweep Cleaning Service of Newport. It is a three-year contract, with $15,600 to be paid out the first year.

. Ratified a trash ordinance that penalizes persons who throw household trash into the town’s recycling containers. Dogherty reported that since mandatory re cycling went into effect in October, the town has shipped 100 tons more of recyclables than it did last year. As of Wednesday, 800 tons of items had been processed and shipped from the Pittsfield Recycling Center.

. Approved changing the town employees’ insurance options.

. Appointed Dr. Kevin Flannigan to fill a vacancy on the SAD 53 board of directors.

. Voted to buy a nonconforming lot on Harriet Street, but did not determine future use of the land.

. Passed the capital projects, water and sewer budgets for 2001 as proposed.