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FINANCE / CLAIMS
COMMITTEE ACTIONS
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DECEMBER 11, 2003
ATTENDANCE: Bruce Kimmel, Chairman; Doug Sutton, Carvin Hilliard; Doug Hempstead; Michael Coffey
STAFF: Tom Hamilton, Finance Director; Fred Gilden, Comptroller;
Lisa Biagiarelli, Tax Collector; Gerald Foley, Purchasing Agent
CALL TO ORDER
The Chairman called the meeting to order at 8:05 p.m.
APPROVAL OF THE MINUTES OF THE FOLLOWING
FINANCE COMMITTEE MEETING: OCTOBER 1, 2003
** MR. SUTTON MOVED TO APPROVE THE MINUTES OF OCTOBER 1, 2003.
** MOTION PASSED WITH TWO ABSTENTIONS (MR. HEMPSTEAD AND MR. COFFEY).
Claims for Committee: receive the monthly Claims report; review and approve claims as required for Claims Report dated:
November 12, 2003: Mr. Kimmel stated that there were no items over $5,000 on the report for the Committee vote on, therefore it was for informational purposes only.
December 11, 2003: Mr. Kimmel asked for an explanation of the two special requests. Ms. Biagiarelli replied that they were both court stipulations where tax refunds were given.
** MR. KIMMEL MOVED TO APPROVE THE CLAIMS REPORT OF DECEMBER 11, 2003 AND FORWARD IT TO THE COMMON COUNCIL.
** MOTION PASSED UNANIMOUSLY.
Narrative On Tax Collections Dated December 11, 2003 –
Receive Report and Discuss
Ms. Biagiarelli reported that at the end of November they had collected 53.12% of the current (2002 grand list) adjusted tax levy, which was ahead of last year’s collection of 51.88% as of the end of November. She stated they were slightly behind in the sewer use levy.
Ms. Biagiarella continued that as of the end of November they had also collected in excess of $3 million in past due taxes, sewer use changes, and interest, which was an increase of $763,000 from the same time period in the prior fiscal year. She reported that the increase was attributed to increased collection enforcement initiatives including the real estate tax sale of June 2003, and the tax warrant program with marshals and constables making door to door collections.
Ms. Biagiarella reported that tax bills for the second installment would go out next week, which was a week later than last year. She noted that taxpayers would have until February 2, 2004 to pay without interest penalty because February 1st falls on a Sunday.
Monthly Tax Collector’s Report Dated November 30, 2003 – Receive Report and Discuss
This report was reviewed by the Committee.
Authorize the Mayor, Alex A. Knopp to sign an amendment with RCC Consultants contract for the development of specifications for a new telephone system for the City Hall for a sum not to exceed $37,000.00.
Mr. Foley stated that recently the City contracted with RCC Consultants to perform a city-wide Communication Network Study and it was subsequently amended to include the development of specifications for the telephone systems for the new Police Station and Brien McMahon High School. He requested that the contract be amended again to include the development of specifications for a new telephone system at City Hall.
Mr. Hamilton stated that the current system was more than 10 years old. He continued that the number of lines the system can accommodate was maxed out and they cannot add any more users. He reported that they were also looking into integrating this switch with the switches going into Brian McMahon and the Police Department for a backup system.
Mr. Coffey asked who was in charging of Council members obtaining outside access to email. Mr. Hamilton replied that the request should go through the City Clerk’s office and Mr. Armand Madeo, the IT Director. Mr. Kimmel asked that this be looked into by the next meeting.
** MR. KIMMEL MOVED TO AUTHORIZE THE MAYOR, ALEX A. KNOPP TO SIGN AN AMENDMENT WITH RCC CONSULTANTS CONTRACT FOR THE DEVELOPMENT OF SPECIFICATIONS FOR A NEW TELEPHONE SYSTEM FOR THE CITY HALL FOR A SUM NOT TO EXCEED $37,000.00.
** MOTION PASSED UNANIMOUSLY.
Informational Update on the Operating Budget
Mr. Hamilton reviewed a letter from the Mayor, dated December 5, 2003, which
summarized the major budget challenges. He reported that the biggest budget concern
to revenue was the real estate conveyance tax. He noted that the State is scheduled to
revoke the City’s ability to impose a conveyance tax of .5% which would generate
significant revenue. He noted that the City will have to either increase revenues or
decrease services by $3 million just to stay even with last year. He continued that he will
not know will happen until legislature reconvenes in February. Mr. Hamilton reported
that another issue was that the State was going to revoke the City’s ability to tax
commercial property owners who receive tax breaks for new manufacturing equipment
purchases. He reported that this is projected to result in a reduction of revenue of
approximately $350,000 to the City.
Mr. Hamilton continued that the declining interest on investments was also expected to
cause a revenue shortfall in the budget due to interest rates remaining low. He noted
that State law governs what they can invest in. Mr. Hamilton reported that debt service
has also been affected by the City’s agreement to move $1.5 million for the acquisition of
textbooks from the Board of Education’s budget to the capital budget. Mr. Hamilton also
reported that the required contributions to the City’s pension fund are also expected to
increase substantially in FY 2005. He noted that prior to this year and the prior three
years, due to the very strong performance of the stock market, the City was not required
to make any contribution at all. He stated that the pension contribution will be a major
budget issue for the next four years.
Mr. Hamilton concluded by stating that there were a lot of unknowns in the budget. He
reported that he held budget meetings with all the departments and all department’s
budgets were conservative. He recommended following the budget process similar to
last year.
Mr. Hamilton next reviewed the performance measurement concept. He stated that he was trying to instill in the departments the focus on outputs and outcomes that will provide information on what the departments are doing and how they are accomplishing it. He reported that he was piloting this in Public Works and the Health Department. He concluded by stating that performance measurement was a work in progress with the purpose to make the City government more effective and efficient.
Mr. Kimmel next reviewed the budget process. He stated that on Monday, January 12th the Finance Director will submit the Department’s proposed budgets to the Board of Estimate and Taxation, along with any recommendations, and on Tuesday, January 13th, there will be a ½ hour discussion and presentation prior to the Common Council meeting. He reported that a public hearing will be held on Tuesday, January 21st at 7:00 p.m. to be followed by a Special Meeting of the Finance/Claims Committee.
From Tabled Items of October 1, 2003 meeting:
1) Discuss Fee Schedule related to Delinquent Motor Vehicle Taxes and take necessary action.
Ms. Biagiarelli requested that she be given another month to obtain more research on the fee schedule for delinquent motor vehicle taxes. She also stated that she would like
to compare what other municipalities are doing. Mr. Kimmel replied that she should report back to the Committee when she had all the information.
** MR. KIMMEL MOVED TO ADJOURN THE MEETING.
** MOTION PASSED UNANIMOUSLY.
The meeting was adjourned at 9:50.m.
Respectfully submitted,
Donna DeVito for
Telesco Secretarial Services
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