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NOVEMBER 10, 2004

ATTENDANCE: Carvin Hilliard, Acting Chairman; Kenneth Baker; Douglas Sutton

STAFF: Thomas Hamilton, Director of Finance; Lisa Biagiarelli, Tax Collector; Fred Gilden, Comptroller

Mr. Hilliard called the meeting to order at 8:10 pm. At this point in the meeting a quorum was not present, it was decided to discuss items and pass them to the Common Council for approval.

1. Approval of the Minutes – October 14, 2004

There was no discussion this evening.

2. Claims Committee: receive the monthly claims report, review and approve claims as required for Claims Report dated November 10, 2004

Ms. Biagiarelli handed out a report that summarized the material in the back up material. She called attention to the comparison of this year’s figures to last year’s figures noting that they are down by less than ½% of the collection levy; she also noted a difference in the back taxes as there are fewer to collect. They are working on a tax sale now, however it will be considerably smaller than the last one.

Mr. Hamilton commented that the auditors had noted that the tax collection rate for Norwalk is outstanding for a city of this size. He said in terms of actual tax collections, they came within $2500 of their projected figure. With regard to tax appeals they are a little uncertain of the projected number at this time but noted that they are in good shape and that it is important to get this number nailed down as 85% of the revenue comes from taxes.

3. Narrative on Tax Collections dated November 10, 2204 – Receive Report and discuss

Ms. Biagiarelli noted the importance of committee members reviewing the figures on a monthly basis. She said although the figures are down there are not of great concern. Regarding the tax bills, Ms. Biagiarelli stated that they are normally sent out over Thanksgiving to be in the mail well before Christmas, however they are still waiting for information from the tax assessor’s office and this may change plans slightly.

Mr. Baker asked what makes up the other 15% of revenue.

Mr. Hamilton replied that it came in the form of state aid, fees, charges and interest.

Mr. Hilliard about the shortage of employees in the tax office.

Ms. Biagiarelli said that the counter person had been transferred to the Fair Rent office, however they hope to have her replaced by the first week in December.

5. Authorize the Mayor, Alex Knopp, to execute an agreement with Systemed Rx (a wholly owned subsidiary of Medco Health Solutions, Inc) to provide Prescription Benefit Manager services to the City – Account No. 169022-5258

Mr. Hamilton indicated that this had been discussed previously and that they are now ready for authorization. The basic idea is that the city has joined with ten other municipalities in the state as a purchasing coalition to go out for bids for prescription drugs for city employees and retirees. The reason is that the larger the pool the greater the discounts can be achieved; the city is expected to achieve savings of 12.1% over what they currently pay. Mr. Hamilton stated that the savings are solely attributable to the lower prices, there is no cost shifting and there will be no reductions in benefits – it is a win/win situation. They are hoping to put this in place for January 1, 2005 and hope for approval at the next Common Council meeting.

Mr. Baker asked if this had to be discussed with the union.

Mr. Hamilton replied that they have met with the collective bargaining groups; however, the city does have the right to make the change. He said they want to work co-operatively with the unions to maintain a good working relationship. He said the biggest change to the employees is that they will have to carry a second card now, everything else will remain the same; he also noted that a welcome packet would be sent out to all employees explaining the new service.

Mr. Sutton said in unbundling services; why did they choose prescription drugs.

Mr. Hamilton responded by saying that prescription drugs are the fastest rising components of medical care and they have a very large mark up.

Members of the committee agreed that this item would be passed to the Common Council for approval.

6. Authorize the Mayor, Alex A. Knopp, to execute a loan agreement with the Oak Hills Park Authority for the construction of the Oak Hills Park Authority Restaurant. Construction costs are being paid through the Capital Projects Fund with monies previously bonded for the project as authorized by the Common Council. The agreement is for the Oak Hills Park Authority to pay the City for principal, interest and bond issuance costs associated with the project.

Mr. Hamilton stated that this is not the appropriation; that is already in place. The construction is already underway using city capital budget dollars. The second half of the agreement is between the City and Oak Hills to repay the city for the cost of the project - $2.2 million in principal, interest and the cost of bond issuance. Regarding the terms of the loan, Mr. Hamilton indicated that it is a twenty-year term at an interest rate of 4.5% that is consistent with the city’s cost of money. The structure provides for payment of interest only for the first three years. He referred to article 4, page 6, the loan requires the Authority to fund a restaurant reserve account that will be under the city’s comptroller; by July 1, 2006 the figure of $200,000 has to have been transferred into the restaurant reserve account. After the first three years when the restaurant reserve account has been met, interest and principle will paid to the city. As an added security to the city, Mr. Hamilton explained that if there is a default on payments by the Oak Hills Authority the city can look to the restaurant reserve account and if the restaurant reserve account does not have enough money the city will have the right to a portion of fees from rental income of the golf carts and equipment. This will provide a backstop if the Oak Hills Authority cannot make the payments.

Mr. Baker asked how the income is set up.

Mr. Hamilton explained that income comes from greens fees; cart rentals and the restaurant can be rented out for functions.

Mr. Baker commented that this is not a great backstop if this puts the Oak Hills Authority in a deficit.

Mr. Hamilton said this is as much security as they can reasonably ask for.

Mr. Baker asked about concerns regarding the restaurant being profitable without a driving range.

Mr. Hamilton said he was not sure what the final projections are. However, the Oak Hills Authority have found a tenant for the restaurant for a ten year period and by having the restaurant would make the golf course a more attractive amenity for golfers and tournaments etc.

It was agreed by committee members that the item would be passed to the Common Council for approval.

The meeting was adjourned at 8:50 pm.

Respectfully submitted,

Kate Kye
Telesco Secretarial Services