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FINANCE / CLAIMS
COMMITTEE ACTIONS
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MAY 7, 2003
Approved FJG 06/12/03
ATTENDANCE: Bruce Kimmel, Chairman; Matthew Miklave; Christopher Perone; Douglas Sutton; Carvin Hilliard.
STAFF: Jack Miller, Director of Finance Department; Lisa Biagiarelli, Tax Collector; Frederic J. Gilden, Comptroller.
Chairman Kimmel called the meeting to order at 7:37 p.m.
APPROVE MINUTES OF THE FOLLOWING FINANCE COMMITTEE MEETINGS
April 2, 2003
The following corrections were made:
On page 1, last paragraph of the page, change Mr. Baker to Mr. Miller.
** MR. MIKLAVE MOVED TO APPROVE THE MINUTES AS AMENDED.
** MOTION CARRIED WITH ONE ABSTENTION (MR. HILLIARD).
April 3, 2003
The following correction was made:
On page 3, middle of the page, change the heading title to "Joint Public Hearing with Planning Committee," not "Finance Committee."
** MR. MIKLAVE MOVED TO APPROVE THE MINUTES AS AMENDED.
** MOTION CARRIED UNANIMOUSLY.
CLAIMS COMMITTEE: RECEIVE MONTHLY CLAIMS REPORT;
REVIEW/APPROVE CLAIMS AS REQUIRED FOR CLAIMS REPORT
DATED MAY 7, 2003
Mr. Miklave recused himself from discussion of this item and left the room. Ms. Biagiarelli said that that there were two special requests on Page 3 of the Claims Committee report because their dollar amount exceeded $5,000. One request, $5,413.85, was a duplicate payment which she said was a fairly frequent occurrence. The other, $5,145.46, was a payment made by the mortgage company on the wrong parcel of land.
** CHAIRMAN KIMMEL MOVED TO APPROVE THE CLAIMS COMMITTEE
REPORT.
** MOTION CARRIED UNANIMOUSLY.
Mr. Miklave rejoined the meeting.
DELINQUENT TAX REPORT: RECEIVE REPORT AND DISCUSS
Ms. Biagiarelli pointed out the highlights of her narrative of delinquent taxes. She said that at the end of March, about 97.5% of delinquent taxes (comprised of the adjusted current tax levy, adjusted current sewer use levy and delinquent taxes, interest and lien fees) have been collected.
Ms. Biagiarelli said that Mayor Knopp announced that Norwalk would hold a property tax sale on June 23, 2003 beginning at 5:00 p.m. The advertisement appears in The Norwalk Hour. In March, there were 93 properties to be included in that sale. Since then, several have been paid and at present 72 remain on the list to be sold. It was her opinion that by the date of the sale there will be about 40 properties left. She referred to three huge poster boards on exhibit in the Town Hall lobby advertising the sale and showing some of the properties. Anyone sincerely interested in purchasing the properties via the sale can get a listing of what is available and a brochure explaining the process.
Ms. Biagiarelli explained a bid can only be placed on one individual property, not on a group together. A minimum bid must include the accrued taxes and interest, fees for the posting of legal notices, her fee, the post-title charge and the taxes that would appear on the next grand list. The bidder places a $5,000 deposit to enter the bidding. The balance due on the property must be paid by the following Friday or the bidder risks forfeiture. All proceeds from the sale will be collected before the end of the fiscal year. She said that the City will acquire the properties that aren't sold.
Mr. Perone asked if bids were ever higher than fair market value. Ms. Biagiarelli said that fair market value was irrelevant as long as the property sold for the taxes due on it. If a property has an existing lien on it, the lien holder must be notified prior to the sale that the property is on the sale list. She said that the City is not allowed to make a profit on the sale. Mr. Miller said that the City is trying to avoid any liabilities.
Mr. Miklave asked if any of the properties on the list were occupied by resident owners. Ms. Biagiarelli said that there were approximately 10-12 properties that were owner occupied and it was expected that they would pay the taxes before the sale. There are a few condos that are unoccupied. Chairman Kimmel asked what happens if someone cannot pay right now. Ms. Biagiarelli said that unfortunately, she has no control over what happens since it is her obligation to the City (and is State enforced) to collect the taxes. She explained that Norwalk is legally required to hold a tax sale as part of the collection process. The sale is really a last resort effort to collect the taxes owed on the properties; the City's goal is to realize $2 million in revenue from the sale. The City spends exorbitant sums of money to service its properties and the money must come back to the City so that it can continue to provide those services.
Mr. Miklave asked if any residents who are not owners of the properties will be affected once the property is sold. Ms. Biagiarelli said that she was not sure how many would be affected. Mr. Miklave said that while he understood that Ms. Biagiarelli needed to perform her function as Tax Collector, he was extremely concerned for those residents who would be displaced through no fault of their own. This would create real injury for real people. Mr. Sutton said that he understood Mr. Miklave's concerns and the difficulty that Ms. Biagiarelli faced in carrying out her function as Tax Collector. He added that there didn't seem to be any recourse.
Mr. Miller said that there are three properties on the list that the Land Trust is interested in acquiring.
Mr. Biagiarelli said that she was bound by law to perform her functions timely and expeditiously or be subject to personal liability; she had already been sued six times previously. She said that it is distressing feeling but under no circumstances could she show any favoritism. The criteria for the sale was reviewed by Mayor Knopp and needed to be strictly adhered to.
RECEIVE BOARD OF ESTIMATE AND TAXATION SPECIAL APPROPRIATIONS
Mr. Miller said that three special appropriations were approved by the Board of Estimate and Taxation's at their May 5th meeting. The "BET" tabled an item regarding the $18,606 shortfall that the Registrar of Voters Office experienced due to overage in the temporary and part-time wage accounts. Chairman Kimmel asked why it was tabled; Mr. Miller said that information is still being collected. Mr. Miklave remembered that that same item was corrected last year by the Common Council.
$7,000 Transferred from Contingency to the City Clerk's Office for Expected Shortfall for Typing Services, Account No. 01-0400-5225.
Mr. Miller said that there were special meetings held that required typing services that were unplanned at the time of budget preparation and consequently there is an expected shortfall of $7,000 in this year's budget. Next year's budget has been adjusted so there should be no shortfall.
$25,500 Transferred from Contingency to the Personnel Department for Expected Shortfall in Legal Services Due to Labor Negotiations, Account No. 01-0700-5258.
Mr. Miller said that there have been many unplanned meetings and activities and additional funds were needed to pay for outside legal counsel. Next year's budget has been adjusted ($50,000 is budgeted) so that the problem doesn't reoccur. Chairman Kimmel said that the Board of Education uses its own legal firm. Mr. Miller said that it would be preferable if the Board of Ed and the City used the same labor attorney but the Board of Ed chooses to use their own and has been doing so for probably the last 20 years.
$15,000 Transferred from Contingency to the Police Department to Pay for Building Maintenance at the Police Substation, Account No. 01-3054-5241; 01-3054-5266.
Mr. Miller said that the shortfall exists because a grant to cover maintenance of the substation facility was not received from the DEP. The same situation will probably occur next year if the grant is not received. The additional cost to maintain the substation will continue until the new police station is opened.
REVIEW CITY FINANCIAL QUARTERLY REPORT AS OF MARCH 31, 2003
Mr. Miller provided highlights of the quarterly financial report. He said that the largest variance, $6.3 million, related to the payment from part of the Maritime Center bonds. Losses reported early in the year point toward a fund balance of less than 4%, but the year will probably end with the fund balance close to 5%. Steps have been taken to fill the holes in this year's budget; improvement in tax revenue was unexpected. There were a few reductions in expenditures.
Regarding the overtime amount, a drastic improvement was seen in the Police and Fire departments. He referred to an issue that is ongoing with the Board of Education. There is an extra cost of approximately $30,000 for police to provide security at school events. He said that a special account will be set up for usage by the Board of Ed so that it can control the amount of money being spent for police coverage. Chairman Kimmel and the other members discussed police security at school events.
Mr. Miller said that the City has imposed an additional 8% to cover its liability if any should arise during the school events. Chairman Kimmel asked if any office could work a special event and then go to his regular ship without sleeping; Mr. Miller said that he did not have an answer to that question. He said that if an officer is filling in for someone it is considered overtime. If he is working as a special assignment, the rate of pay is at a different rate. The hours worked for special events are not included in the pension.
Chairman Kimmel said that he was pleased about the quarterly report, and in particular, the fund balances.
CONTRACT WITH SCILLIA, DOWLING & NATARELLI
TO PERFORM CITY AUDIT
Mr. Gilden said that the auditors have been paid $81,370 which is 3% higher than expected. The City did not bid the firm, which just completed work on the GASB No. 34 model which brought Norwalk into compliance. For next year, the Mayor will appoint an audit committee. Mr. Miller said that he did a comparison between what Norwalk spent and what other municipalities were paying; Norwalk was low in comparison. If bids are received, Mr. Miller said that he was sure the numbers would come in higher. He said that is important to have a long relationship with one auditing firm … they must thoroughly understand the internal and external workings of the City in order to be as effective as possible. It takes a considerable amount of time for a new auditing firm to "come up to speed." Mr. Miller said that the BET felt it was important to have a few of its representatives meet with the auditors and the Council. He asked if anyone from the Finance/Claims Committee wanted to be involved in that meeting. Chairman Kimmel said that he met with Mr. Davidson; the issue should be raised in caucus.
** MR. MIKLAVE MOVED TO AUTHORIZE THE MAYOR, ALEX A. KNOPP,
TO SIGN A CONTRACT WITH SCILLIA, DOWLING & NATARELLI, LLC TO PERFORM THE
CITY AUDIT FOR THE FISCAL YEAR ENDING JUNE 30, 2003 FOR A SUM NOT TO EXCEED
$84,000. THE BOARD OF ESTIMATE AND TAXATION AUTHORIZED THE APPOINTMENT ON
APRIL 7, 2003.
** MOTION CARRIED UNANIMOUSLY.
RESOLUTION APPROPRIATING $200,000 FOR THE
MARITIME TICKETING OFFICE PROJECT
** CHAIRMAN KIMMEL MOVED THE MEETING INTO EXECUTIVE SESSION.
** MOTION CARRIED UNANIMOUSLY.
The committee members went into Executive Session at 8:30 p.m. to discuss this item.
** CHAIRMAN KIMMEL MOVED THE MEETING BACK TO PUBLIC SESSION.
** MOTION CARRIED UNANIMOUSLY.
The committee members rejoined the meeting in Public session at 8:40 p.m.
** CHAIRMAN KIMMEL MOVED TO TABLE THE RESOLUTION APPROPRIATING
$200,000 FOR THE MARITIME TICKETING OFFICE PROJECT AND AUTHORIZING THE ISSUANCE
OF $200,000 BONDS OF THE CITY TO MEET SAID APPROPRIATION AND PENDING ISSUANCE
THEREOF THE MAKING OF TEMPORARY BORROWINGS FOR SUCH PURPOSE TO THE COMMITTEE'S
NEXT MEETING.
** MOTION CARRIED UNANIMOUSLY.
** MR. MIKLAVE MOVED TO ADJOURN.
** MOTION CARRIED UNANIMOUSLY.
The meeting was adjourned at 8:45 p.m.
Respectfully submitted,
Carol A. Wiggins for
Telesco Secretarial Services
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