Click above to View Action History

PUBLIC HEARING AND REGULAR MEETING
FEBRUARY 12, 2004

ATTENDEES: Bruce Kimmel, Chairman; Ken Baker, Calvin Hilliard, Doug Sutton, Douglas Hempstead (8:25 p.m.)

STAFF: Frederic Gilden, Comptroller; Tom Hamilton, Director of Finance;
Lisa Biagiarelli, Tax Collector; Ken Whitman, Tax Assessor.

OTHERS: Brian Lockhart, The Advocate.

PUBLIC HEARING

1. TERMINATION OF $350,000 FOR CAPITAL PROJECT #C0260 (HEALTH
SAFETY AND CODE UPDATE) RELATED TO ELEVATOR COMPLIANCE

The Chairman called the Public Hearing to order at 8:15 p.m. Since there were no
members of the public present to speak on this issue, the Chairman closed the Public Hearing.

CALL TO ORDER

The Chairman then called the Regular Meeting of the Finance/Claims Committee to order at 8:20 p.m.

2. APPROVAL OF THE MINUTES OF THE FOLLOWING FINANCE
COMMITTEE MEETINGS: January 8, 2004 & January 24, 2004

Chairman Kimmel noted that three council members - Mr. Miklave, Mr. Coffi and
Mr. Hempstead - were absent. He also commented that he had not had an opportunity to go through these minutes.

** MR. KIMMEL MOVED TO TABLE THIS ITEM TO THE NEXT MEETING.

At 8:25 p.m. Mr. Hempstead arrived at the meeting.

** MOTION WAS PASSED UNANIMOUSLY.

Before moving on, Mr. Kimmel wanted to make a point. He said that the Council had always had a good record of getting material for this Committee well in advance of the meeting, but something happened this time - they were placed in the members' mail boxes instead of the caucus meeting room on Monday. Mr. Kimmel said it was common knowledge that it's hard to get to the mail boxes. It should not have happened because it's not what people are used to. It sets bad precedent and he hoped it didn't happen again. He said the person who did it should know better.

Claims Committee: receive the monthly Claims Report; review and approve claims as required for Claims Report dated: February 12, 2004

This item was not discussed.

3. NARRATIVE ON TAX COLLECTIONS DATED FEBRUARY 12, 2004 - RECEIVE
REPORT AND DISCUSS.

After apologizing for getting the Narrative to Mr. Kimmel late, Ms. Biagiarelli gave details of the Tax Collector's report as of the end of January 2004 which showed that almost 90% of the adjusted current tax levy had been collected - close to $166 million. An additional $7.7 million of the current sewer levy was also collected - nearly 87%. She noted that these numbers are very slightly ahead, perhaps 1%, of last fiscal year. However, she stressed that they should not become overconfident simply because we are slightly ahead at this time. There can be no meaningful analysis of the current tax collection until comparison with the numbers at the end of February is made. She said she would say the same thing if they were behind.

In her Narrative, Ms. Biagiarelli stated that the first week of February was very busy, with more than $11 million collected, and as of this date, all payments received had been processed and they were up to date with their postings.

Regarding past due collections, Ms. Biagiarelli said that as of the end of February, $3.6 million was collected in past due taxes, sewer use and interest charges, up more than $559,000 from the same time period last year. She said that they were continuing to focus on past due collections as time permits. She went on to say that delinquent notices will be mailed out at the end of February and that approximately 700 tax liens will be filed by the second week in March, if everything goes according to schedule.

Mr. Kimmel asked Ms. Biagiarelli if there was anything to report regarding auto tax (the motor vehicle delinquency fee). She said that there are proposals before the legislature to change the law that currently exists and that there's still no consensus on how much to charge. Some towns are not charging anything at all, some charging $5, some more, some only 50 cents.

Mr. Whitman said that the matter had been discussed with the Mayor and he seemed okay with charging $5 for a motor vehicle release. However, Mr. Whitman wanted Mr. Kimmel's opinion before he made the final decision. Mr. Kimmel said that he felt they were in a tight spot. Mr. Whitman said that if the city charged $5 per release it could recover $7,500 to $9,200 or even more. Mr. Kimmel said he had no problem with that. Mr. Whitman said that every other agency in the city is okay with it.

4. MONTHLY TAX COLLECTOR'S REPORT DATED JANUARY 31, 2004 - RECEIVE REPORT AND DISCUSS

Mr. Whitman submitted his report and said there was a court stipulation regarding 390 Westport Avenue on an erroneous payment by the taxpayer's escrow agent, Wells Fargo, and he needed the Council's approval.

Mr. Kimmel asked if there were any questions regarding this special request. Since there were none, it was agreed by all.

5. DISCUSSION ON REVALUATION AND TAX RELIEF PROGRAMS

Mr. Kimmel asked Mr. Whitman if there was anything new as regards the question of phasing in of revaluation. Mr. Whitman stated that revaluation is still in the preliminary hearing stage and they were in the process of approving $1800 in going over the appeals. He said it had also allowed him to look at residential neighborhoods to make evaluations. There are thousands of properties being changed over. He expected to be finished by the middle of next week with the appeals and then he could finalize the grand list, send it to the printer and expected his report to be out by the end of February - in the mail by February 27th.

Mr. Whitman said that the deadline for applications for tax relief was March 22nd so there was plenty of time. If people were unhappy they were allowed to get assistance. Everyone in the city will receive letters giving details of the deadline and how they should appeal. Mr. Whitman explained that they were trying to work out a system on the Internet so that people could get warnings ahead of time and also save them from going to the Assessor's Office.

Mr. Hilliard asked Mr. Whitman if he'd looked at properties again. To which he replied that he was in the process of looking at all neighborhoods. Mr. Hilliard asked if Mr. Whitman could give further information on this. Mr. Whitman said that he looks at certain neighborhoods to see if he should be making changes to a street or property. For instance, if the property is next to a railroad or a highway. That's why it takes longer than one day, he explained, because he's looking for fairness. He went on to say that if there are five or six properties on one street and they have a legitimate complaint, he will change the whole street rather than one at a time.

Mr. Whitman went on to say that there are 242 commercial (11% of commercial base) that the revaluation company was handling, and there were 1,560 residential or other properties which included single family, multi-family and condos - about 6% of the remaining parcels in town. He felt there were a reasonable number of appeals for revaluation since last time it was about 11% overall. Mr. Baker asked Mr. Whitman what was the percentage of commercial properties, to which he replied that it was in the 15% range. Residential was in the 10-11% range.

Mr. Kimmel inquired as to the amount of the tax increase now. Mr. Whitman said that the reason he gave a range was because when he made the 55% increase it was based on evaluation only and the fact that there was a policy to keep the motor vehicle tax the same and not lose revenue. The 55% increase is not break-even. If you take into consideration the motor vehicle tax then that 55% is really close to 60%. He said that the total grand list had changed about $25 million upwards and even though there's been a decrease, there's been an increase too.

Mr. Whitman said that he's been talking to contemporaries who are in agreement that people are getting much more savvy about the revaluation process. He explained that he's been doing a lot of research and gets 75-100 e-mails a day (spends 2 hours reading them) saying that people have been looking at properties. He felt this was a benefit in the long run.

Mr. Hilliard asked how many single-family homes were affected in Norwalk. Mr. Whitman said there were about 16,000. Mr. Hempstead asked how many were above 60%. Mr. Whitman replied that 50% of homeowners will receive no, or minimal, decrease. A 5% increase or greater applied to 40% of homeowners.

Mr. Kimmel said that peoples' income varies and their ability to pay taxes is important. This applied to different parts of the city, South Norwalk as opposed to Rowayton, when discussing relative incomes. Mr. Hilliard said that landlords pass the increase in property taxes to the tenants.

Mr. Whitman went on to say that different phases in the economy effects revaluation - commercial property was outstripping residential for the first time.

As regards the phasing, Mr. Hamilton said that the Mayor would support this. Although Mr. Whitman wasn't sure whether it was two, three or four years, Mr. Hamilton said the Mayor would reserve his opinion, but most likely he'll support a phasing. Mr. Whitman said that phasing would benefit two-thirds of homeowners - 30%.

Mr. Hempstead said that the last phasing was way too long and that the budget is part of the answer. Mr. Hempstead said he was in favor of a 2-year phase-in.

Mr. Kimmel said that he was leaning towards 3 years for people who are hurting. Mr. Hempstead agreed and said that people have gone from a $4,000 tax payment to a $40,000 tax payment and that incomes haven't increased that much. Mr. Kimmel said that it was impossible to look at income without consequences. He said the disparity in income and tax could not be resolved at the local level.

Mr. Whitman said there would be more detailed information at the next meeting regarding phasing. Mr. Kimmel asked if anyone was against phasing. No one responded, except Mr. Hamilton who reiterated that the Mayor was looking at some kind of phasing.

Tax Relief Programs

Mr. Whitman handed out his report. He said that they expected to get 150 new applicants a year and the process will start over again. He said there were two local city programs costing $524,000 and that state programs are fully reimbursed at the moment. He said there was $471,000 tax relief for the elderly which was down from three years ago when there were 1100 applicants.

Mr. Kimmel asked how many people in Norwalk would be eligible and was it possible to take a census. Mr. Whitman said there was a problem trying to match with age because the program doesn't always apply to the elderly situation. Mr. Kimmel said that he would like to provide help to those who need it. Mr. Whitman said that it was a tight budget year and they'd be talking about millions of dollars in relief. Mr. Kimmel asked for projections and Mr. Whitman said if they went in $50 increments, for every 1,000, it would be $50,000, which is realistic.

Mr. Hilliard said that there should be more emphasis on lower income - those who need to be helped the most. With an $18,000 income they're paying $4,000 tax. The city program would be a supplemental tax benefit.

Mr. Kimmel wanted to know why it was decreased the second year. Mr. Whitman said it was a compromise - instead of 1,000 we went to 550-600. Mr. Kimmel asked Mr. Whitman if they could make the decision in March since they didn't have the full picture of the budget. Mr. Whitman said that as long as it's done before April 15th - if we can get statistics from census - we will see how it affects the elderly.

Mr. Kimmel said that at the next meeting, when we have all the details, we will be able to come to some decision.

6. STATUS ON OPERATING BUDGET FOR FISCAL YEAR 2004-05

Mr. Gilden presented his report which Council members needed to go over. Mr. Gilden said that there was still a long way to go but there was some potentially good news in terms of significant revenue related to legislation in session - the government has proposed an extension of real estate tax at a rate of 2.5.221 for 17 communities in Norwalk.

Mr. Gilden stated that the Board of Estimate indicated an interest in making decisions over the next couple of weeks. March 1st is the deadline given for the Board to approximate a budget back to Council. They're going to need more time. Will be coming up with liens to make reductions. He said he was unable to share potential areas but seeking to bring number down from where it is.

Mr. Kimmel asked about Pension and Debt Service areas. Mr. Gilden said that there had been a number of discussions and they will be finalizing their report and will be in a position to make some recommendations in those areas by the end of the following week. Mr. Kimmel said he was anticipating positive developments in those areas. Mr. Gilden said that they were asking the Actuary to go ahead and look at the increase in assistance through December 31st and Mr. Gilden was expecting that there would be favorable news regarding increase in pensions. He said that debt services would be going up next year. He mentioned that they were working with a financial advisor.

Mr. Hempstead asked if this was related to the Board of Education. Mr. Gilden said that he was unable to go into details but will be making recommendations and going through the budget in detail. He said that they would be meeting with the BOE to discuss the areas they can assist us with. The Mayor will review areas that had been identified as potentially eligible for achievement. However, Mr. Gilden was not prepared to talk about it tonight.

Mr. Hempstead asked if there had been any movement by the BOE to take a harder look at their budget, beyond what they've done in moving on their own. Mr. Gilden said that he hadn't seen anything in the paper and they hadn't conveyed anything to him personally.

Mr. Kimmel asked what the process was with the BOE regarding budgets. Mr. Hamilton said that he had met for 5 hours with the Superintendent and budget staff. He spent 16 hours going through the budget in preparation for that meeting so that he could ask questions. He said that the BOE was going before the Board of Estimates next week - February 18th.

Mr. Hilliard said that in all fairness to the BOE, with the "No Child Left Behind" legislation in 2002, there are certain guidelines they have to accomplish and it's in the interest of the city that they're successful. Asking for 12 extra teaching positions is okay. They have not been delineated but we're asked to pay for them. We're not sure what they're doing. Adding personnel because there's federal legislation may not solve the problem and could be a waste.

Mr. Hamilton said that the teachers are assigned to high school level to do remedial work with kids not meeting the minimum requirements on tests.

Mr. Hempstead said that student costs are extremely high for special needs. He also said that less than 1% of teachers are ever fired. Mr. Sutton said there was a lot of emphasis placed on public school teachers being evaluated - the process has to be fair.

7. DISCUSSION OF BACKUP & RESTORE RFP AND TO TAKE WHATEVER
ACTION IS NECESSARY

Mr. Hamilton said he was hoping to have this ready to go tonight, but was unable to. He explained that the ITT Committee computer back-up system was inadequate to do the job. The e-mail server went down over the summer and thousands of messages were lost. Other systems also went down. They managed to retrieve some material, but not with any confidence.

Mr. Hamilton added that 22 responses were received and interviews took place. The committee has now chosen two candidates and decided to bring in these finalists for more interviews. The information was not ready tonight, but Mr. Hamilton appreciated the Council members considering it. Mr. Kimmel asked Mr. Hamilton when the Committee is likely to choose the candidate. He replied that they would make their final selection two weeks from today's date.

** MR. KIMMEL MOTIONED TO TABLE THIS ITEM UNTIL MARCH 9TH
WHEN MORE INFORMATION WOULD BE AVAILABLE.

** MOTION WAS PASSED UNANIMOUSLY.

8. AUTHORIZE THE TERMINATION OF ELEVATOR COMPLIANCE PORTION
OF THE CAPITAL BUDGET APPROPRIATIONS FOR THE HEALTH, SAFETY
AND CODE UPDATE PROJECT- ACCOUNT NO.09035010-5777-C0260 -
REDUCTION: $350,000.

Mr. Hamilton stated that all elevator improvements at city schools are now
expected to become part of the overall $70 million school improvement project.

** MR. KIMMEL MOVED TO AUTHORIZE THE TERMINATION OF THE ELEVATOR
COMPLIANCE PORTION OF THE CAPITAL BUDGET APPROPRIATIONS FOR
THE HEALTH, SAFETY AND CODE UPDATE PROJECT - ACCOUNT NO.
09035010-5777-C0260 - REDUCTION: $350,000.

** MOTION WAS PASSED UNANIMOUSLY.

9. AUTHORIZE THE MAYOR, ALEX A. KNOPP, TO EXECUTE AN AGREEMENT
WITH MRM CONSULTING, INC. TO PROVIDE RISK MANAGEMENT CONSULTING SERVICES TO THE CITY COMMENCING FEBRUARY 1, 2004 AND ENDING JUNE 30, 2008, TO BE BILLED AT AN HOURLY RATE OF $175/HR THROUGH JUNE 30, 2005; AT $185/HR FROM JULY 1, 2005 TO JUNE 30, 2007; AND AT $195/HR FOR FY 2007-08. ANNUAL AMOUNT OF CONTRACT NOT TO EXCEED $72,000, OR THE AMOUNT BUDGETED FOR SUCH SERVICES, WHICHEVER IS LESS.

Mr. Hamilton said that MRM Consulting was a well-established firm with specialized expertise in the area of risk management. The City would like to stay within $61,000 of the budget for this service and they have the right to terminate the contract with the company at any time if it's not working. MRM's initial review will cost more, but will decrease to $5,000 per month. Mr. Hamilton recommended approval of the contract since he is confident that MRM Consulting will serve the city well.

** MR. KIMMEL MOVED TO AUTHORIZE THE MAYOR, ALEX A. KNOPP, TO
EXECUTE AN AGREEMENT WITH MRM CONSULTING, INC. TO PROVIDE
RISK MANAGEMENT CONSULTING SERVICES TO THE CITY COMMENCING FEBRUARY 1, 2004 AND ENDING JUNE 30, 2008, TO BE BILLED AT AN HOURLY RATE OF $175/HR THROUGH JUNE 30, 2005; AT $185/HR FROM JULY 1, 2005 TO JUNE 30, 2007; AND AT $195/HR FOR FY 2007-08. ANNUAL AMOUNT OF CONTRACT NOT TO EXCEED $72,000, OR THE AMOUNT BUDGETED FOR SUCH SERVICES, WHICHEVER IS LESS.

** MOTION WAS PASSED UNANIMOUSLY.

10. RECEIVE ANNUAL FINANCIAL REPORT DATED JUNE 30, 2003

** MR. KIMMEL MOVED TO TABLE THIS ITEM TO THE NEXT MEETING.

** MOTION WAS PASSED UNANIMOUSLY.

OTHER BUSINESS

Mr. Hempstead introduced the subject of computer and audio equipment and felt that an inventory should be taken of what is being purchased and where it's going. Also, there needs to be follow-up on the condition of the equipment.

Mr. Kimmel said that a memo had gone out and that nothing will go to BOE without approval from the ITT Committee.

Mr. Hempstead reiterated his concern relating to the functionality of the equipment once it's been purchased and gets to the schools…that it's not doing what it's supposed to be doing - serving the best interest of the students. He wanted to know who was responsible for overseeing the delivery and maintenance of equipment to the schools. He said that the city is spending a lot of money on computers and needs to know that they're being properly maintained.

Mr. Kimmel said that this was a capital expense.

Mr. Hempstead felt that the Board of Education should address the issue, if the word is out there.

Moving on, Mr. Kimmel asked Mr. Hamilton when he thought he would have a firm handle on the budget - for March 9th perhaps?

Mr. Hamilton said that he still had a lot of work to do on the budget . Mr. Kimmel said that the regularly scheduled meeting would be March 11th and asked if that would give Mr. Hamilton sufficient time. He said he thought it would probably work. Mr. Kimmel said that a discussion would take place at that time regarding phasing and civil tax rate.

Mr. Kimmel also said that assuming the information is received on time, a Public Hearing should be scheduled for 7 p.m. on March 11th - see how much could be accomplished. He said that if more time was needed, the Hearing could be adjourned to the next night or a Saturday morning.

It was agreed that a Public Hearing should be scheduled for March 11th, 2004.

Mr. Sutton asked if it was just going to be a Public Hearing and Mr. Kimmel said that the Regular Financial Meeting would follow afterwards.

There being no further business the meeting was adjourned at 10:45 p.m.

Respectfully submitted,

Marie Rowe
Telesco Secretarial Services