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FINANCE / CLAIMS
COMMITTEE ACTIONS
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JANUARY 8, 2003
Approved FJG 06/12/03
ATTENDANCE: Bruce Kimmel, Chairman; Matthew Miklave,
Ken Baker
Douglas Sutton, Chris Perone
OTHERS PRESENT: Land Use Committee: Alan Lo, Betsy Bain, Bill Krummel
GUESTS PRESENT: Mayor Knopp, Mr. Stuart Opdahl
STAFF: Jack Miller; Finance Director; Frederic Gilden;
Comptroller
Lisa Biagarelli; Tax Collector, Mr. Whitman; Tax Accessor
Mr. Kimmel called the meeting to order at 7:30 p.m.
THE FOLLOWING ITEM IS A JOINT COMMITTEE MEETING WITH LAND USE AND BUILDING MANAGEMENT COMMITTEE:
APPROVE RESOLUTION APPROPRIATING $670,000 FOR THE ACQUISITION OF LAND AT 288 HIGHLAND AVENUE AND AUTHORIZING THE ISSUANCE OF $670,000 BONDS OF THE CITY TO MEET SAID APPROPRIATE AND PENDING THE ISSUANCE THEREOF THE MAKING OF TEMPORARY BORROWINGS FOR SUCH PURPOSE.
Mr. Kimmel opened the item for questions.
Mayor Knopp said the Ad Hoc Building Committee always expressed interest and it was decided the city would not acquire the property by eminent domain; the current owner and her attorney have submitted a letter on a voluntary basis and at no time was there any pressure from the Mayor's office for the owner to sell the property. He said the owner could remain rent free until June 2003 if necessary however, a fence will be put up to utilize a side of the property to allow construction to begin. Mayor Knopp said the site line would improve for the Global Studies Center and thus allowing a rich scholastic program at Brien McMahon High School. He noted that without the property the practice fields would have to be shrunk in addition to moving the tennis courts so overall they feel this would be a safe construction process. He stated they are adding 1,400 acres and reducing the nonconformity and the architect feels the plan fits in and it's supported.
Ms. Bain said the additional land should improve the site plan and property. She relayed the feelings of the Ad Hoc Committee in that the consensus was that it would definitely enhance the ultimate outcome of the building; there was a unanimous endorsement for the land.
Mr. Perone asked if there was any view from the Ad Hoc Committee regarding the structure. Ms. Bain said the property acquisition did not impact the preferred site for the addition.
Mr. Miklave asked the estimate for the retaining wall. Mr. Opdahl said it was estimated at $8k that is on the high end and both walls would be in back of the property. Ms. Bain added there is also regarding being done in addition to the retaining walls.
Mr. Opdahl noted they were pushing other projects out in the next year or so.
Mr. Krummel said the ED049 should be revised. Mr. Opdahl agreed it would be and he also said an ED040 needed to be filed as well.
Mr. Kimmel said with these type of eminent domain situations it always registers a "negative bell" and he asked all to keep in mind the initiative came from the owner upon request.
Ms. Bain added the committee was approached last year about selling the property prior to the site analysis; so it's not a surprise.
Mr. Krummel asked about the legal proves involved for eminent domain i.e., the trial referee involved in looking at the appraisal of the property. Mayor Knopp replied that there is a judicial proceeding wherein the city seeks permission from the Common Council via the Superior Court; he noted there is no reason why the judge wouldn't accept the value of the property that is reasonable.
Mayor Knopp further stated that the day after approval by the Common Council a certificate of taking is filed. Ms. Bain asked if upon this, could the design process begin. Mayor replied that there is a 60-day waiting process before actual construction begins.
** MR. KIMMEL MOVED TO APPROVE RESOLUTION APPROPRIATING $670,000 FOR THE ACQUISITION OF LAND AT 288 HIGHLAND AVENUE AND AUTHORIZING THE ISSUANCE OF $670,000 BONDS OF THE CITY TO MEET SAID APPROPRIATE AND PENDING THE ISSUANCE THEREOF THE MAKING OF TEMPORARY BORROWINGS FOR SUCH PURPOSE.
Mayor Knopp added that the Board of Estimate has approved the request.
** MOTION PASSED UNANIMOUSLY
Mr. Kimmel called a recess of the Finance Committee at 7:50 p.m. for the purpose of convening the Land Use Committee portion of the meeting.
Mr. Krummel called the Land Use Committee meeting to order at 7:50 p.m.
BOARD OF EDUCATION
Review proposal to acquire property at 288 Highland Avenue to be incorporated as part of Brien McMahon High School site and refer the following to the Common Council:
** MR. KRUMMEL MOVED TO APPROVED TO PROCEED WITH THE ACQUISITION
OF 288 HIGHLAND AVENUE BY EMINENT DOMAIN FOR THE RENOVATION FO BRIEN MCMAHON
HIGH SCHOOL/CENTER FOR GLOBAL STUDIES IN THE AMOUNT OF $670,000 AND AUTHORIZE
THE MAYOR TO EXECUTE ANY AND ALL DOCUMENTS NECESSARY FOR THE ACQUISITION OF
288 HIGHLAND AVENUE.
** MOTION PASSED UNANIMOUSLY
** MS. BAIN MOVED TO AUTHORIZED THE INCLUSION OF THIS PROPERTY AS PART OF
THE BRIEN MCMAHON HIGH SCHOOL/CENTER FOR GLOBAL STUDIES RENOVATION PROJECT
AND THE SUBMISSION OF ALL FORMS AND DOCUMENTATION NECESSARY TO THE STATE BOARD
OF EDUCATION FOR PROJECT REIMBURSEMENT; and
AUTHORIZE FLETCHER THOMPSON TO PROCEED WITH THE DESIGN OF
BRIEN
MCMAHON HIGH SCHOOL/CENTER FOR GLOBAL STUDIES RENOVATION PROJECT WITH THE
INCLUSION OF 288 HIGHLAND AVENUE.
Discussion
Mr. Kimmel asked should the entire project be couched, could the reimbursement
be higher. Mr. Opdahl said probably not because they are using it for athletic
purposes.
** MOTION PASSED UNANIMOUSLY
The Land Use Committee portion of the meeting adjourned at 7:50 p.m.
Mr. Kimmel reconvened the Finance/Claim Committee Meeting at 7:50 p.m.
APPROVE THE MINUTES OF THE FOLLOWING FINANCE COMMITTEE MEETING
DECEMBER 4, 2002
Corrections
Page 3
Paragraph in middle of page; 4th line down where it reads objectives should
read options.
Paragraph in middle of page; 9th line down where it reads The insurers company
should read The insurance company.
Last paragraph; 1st sentence where it reads percentage rate of double-A and
triple-A rates should read percentage rate difference of double-A and triple-A
bond.
Page 5
Last paragraph; 3rd line down where it reads come up with a capital figure
should read come up with a budget capital by the second council meeting
in January.
** MR. KIMMEL MOVED TO APPROVE THE MINUTES AS CORRECTED
** MOTION PASSED WITH FOUR VOTES IN FAVOR AND ONE ABSTENTION (MR. PERONE)
CLAIMS COMMITTEE: RECEIVE THE MONTHLY CLAIMS REPORT; REVIEW AND APPROVE CLAIMS AS REQUIRED FOR CLAIMS REPORT dated JANUARY 8, 2003
It was noted that Mr. Miklave would recuse himself from the discussion and vote on this matter.
Ms. Biagarelli explained out the special request indicated on the report is a duplicate payment.
** MR. KIMMEL MOVED APPROVAL OF THE REPORT
** MOTION PASSED UNANIMOUSLY
DELINQUENT TAX REPORT: RECEIVE REPORT AND DISCUSS
Ms. Biagarelli stated she had the runoff but a narrative wasn't available because the December figures haven't been done yet. She said for the first six months to the fiscal year $99 million was collected and 56% of the current levy and $2.7 million was collected in penalty interest. She said they are on target to date and noted she would have more information at the February meeting.
REVALUATION
Mayor Knopp said that during the last campaign, the revaluation process was criticized because it was thought the city software was inadequate; there was a reduction in personnel in the Tax Accessor's office. The last full revaluation was done in 1983 and they are looking to correct the flaws for the year 2003 revaluation and they have had assistance from the Tax Accessor. Mayor Knopp said he wanted known that the criticism was not an attack on the Tax Accessor's abilities. He continued to say that funds were set aside to fix the obsolete software problems and over the last several months they have been interviewing firms to examine the accounts per the state's requirements. He pointed out the proposal tonight was to authorize a contract with a firm via a competitive bidding process.
Mr. Whitman the Tax Accessor explained the information submitted is the result of the RFP (Request for Proposal) that was sent out several months age for revaluation of the bulk of real estate parcels in Norwalk for the state mandated year 2003 list. He stated that part I involved 2,100 commercial properties; there were three bidders for part I with varied prices. He noted the Revaluation Committee consisted of Mr. Miller, Mr. Schmidt, Mr. Foley and himself. He said that based on selection of the committee, the recommended vendor happens to be the highest bidder and was given consideration for the high bid being from the firm of Lescher, Glenn & Denning. He said they feel they will get a high quality job promised per the specific demands of the contract, he noted all aspects of the final contract were also included.
Mr. Kimmel asked about details of the RFP. Mr. Whitman said what they did with the RFP respondents is they had a grid with several criteria and they based the companies on this and the overriding consideration was the quality and experience of the individual working on the project; he noted the biggest firm is not necessarily the best, he pointed out Coler and Trumbull were far less experience than Lescher, Glenn & Denning.
Mr. Kimmel mentioned the $124,000 difference and he noted they couldn't afford to have questions about the project later. He said he felt they should go where they would get the best and fairest results.
Mayor Knopp added they tried in the past six months to professionalize the bid process through a selective criteria and one question would insisted upon is which employee would be assigned if a particular firm was chosen to work on a large job, he noted they would not want to assign a firm without also checking the individuals working on the Norwalk accounts so in doing so this professionalizes the process. The contract would name the individual and the number of hours spent working on the Norwalk account resulting in a productive measure.
Mr. Baker asked about the 2,100 real estate parcels and if this many would be appraised. Mr. Whitman said yes, there are several on the cusp in terms of the type or property to be determined.
Mr. Baker asked the percentage of appraisals these make up. Mr. Whitman said 7% of actual parcel make up and 23% of actual valuation.
Mr. Perone asked if they talked to the company in Stamford in terms of their abilities. Mr. Whitman said they were included in the process.
Mr. Perone asked if they did larger urban areas. Mr. Whitman said this company did not do Stamford noting that the fee appraisers are working with this company and they are well regarded in Connecticut.
Ms. Bain asked about residential valuation. Mr. Whitman said it would be done similar, in-house by the Tax Accessor's office with a professional consultant to assist. He explained there is a procedure to inspect property every eight to ten years but they are not done all at once; it's a cyclical process.
Mr. Kimmel asked about timing of the entire process. Mr. Whitman said they have already started inspecting sales back to 2002, so when they are at a point of finalizing, they will have a year's work of sales and would continue inspecting and sending out sales questionnaires. In the meantime they are sending out neighborhood analysis that would be ongoing on a monthly basis to allow an idea of where revaluation is going.
Mr. Kimmel asked what would the residents find out on October 1, 2003. Mr. Whitman replied nothing, pointing out this is just an appraisal date, they are still going through the process but sales are not in until several weeks after, so the final analysis continues a least another month after probably until November then the notices would be sent out in early January. Mayor Knopp indicated October 1 is the date of the grand list used for valuation. He also noted there is a schedule on the city's website for citizen viewing.
Mr. Whitman spoke about the software that is being upgraded; he said they had problems with the current software and the city network couldn't be supported by it so the new software should be in place by the end of the month.
Mr. Baker asked if the valuation of 2,100 properties justifies 70% more of the other bids. Mayor Knopp responded yes, and explained the residential properties aren't as complex, but putting a value on a large commercial property where there isn't a comparable sale and receiving a proprietary value involves more.
Mayor Knopp further spoke about the importance of getting accurate values and felt fairer values would be done in 2003. He said he felt this was the right process and the software would be initiated to greatly improve the next valuation.
Mr. Whitman returned to the question of valuation percentage and said that over a five-year period, more than 60% were commercial appeals not residential, so its money well spent up front and in the long run for any potential tax appeals.
Mr. Kimmel stated this was not an action item and he asked this matter to be on the January 14 agenda.
** MR. KIMMEL MOVED TO AUTHORIZE THE MAYOR, ALEX A. KNOPP,
TO ENTER INTO A CONTRACT FOR THIS FIRM (LESCHER, GLENN & DENNING) FOR
THE PURPOSES OF REVALUATION SERVICES NOT TO EXCEED $318,000
** MOTION PASSED WITH FOUR VOTES IN FAVOR AND ONE ABSTENTION (MR. MIKLAVE)
RECEIVE BOARD OF ESTIMATE and TAXATION SPECIAL APPROPRIATIONS
from
JANUARY 6, 2003
Mr. Kimmel no action was required for this agenda item and would be on the agenda next week.
DISCUSSION OF PROPERTY TAX RELIEF PROGRAMS
Mr. Kimmel turned over the floor to Mayor Knopp and Jack Miller for discussion and information.
Mayor Knopp asked if the committee would be holding three hearings concerning this topic and he said asked the city to adopt to provide an optional exemption for low-income veterans for $5,000 per taxpayer because Norwalk currently doesn't participate in this type of program. The property tax exemption would be off their assessed value of $5k and the amount of income allowed would be $25,400 for a single person and $31,100 if married. He recommended beginning the program with a $5k exemption that would entitle a qualified veteran to receive $150.00 in tax savings. Currently there are 200 to 500 veterans in Norwalk who would qualify and the potential cost to the city would be $75k. He said he believes the entire population recognizes the sacrifices of veterans and therefore felt this would be a good program to offer them.
** MR. KIMMEL MOVED THE ITEM FOR PUBLIC HEARING
** MOTION PASSED UNANIMOUSLY
Mayor Knopp spoke about adjustments in the tax relief program for elderly
homeowners. He suggested increasing the level ceiling of the qualified income
to be raised to $40k for 2002 and $45k for 2003; there would be a two-step
increase up to $45k income. He said the original recommendation by the Tax
Referral Committee also raise the deferred income up to $4,000 to a homeowner
or 50% of the tax due or whichever is less. For instance, if a tax bill were
$9,000 the maximum would be $4,000. He said he sees the benefit to offer the
city a bigger tax relief for seniors who are house rich and cash poor; it
offers immediate support but doesn't involve a permanent subsidy, so this
is also a way to minimize a shift of tax to the non-elderly working person
in Norwalk and the best middle ground for all. He further said a lot of time
was spent talking to the Tax Collector in Westport and how they have had the
program in place for many years; they found that repayment rates are high
so there is no drain on the treasury or deferred shifts to the elderly. In
doing a two-step process, they would be able to gauge the success of the program.
Mr. Kimmel asked the limit currently. Mayor Knopp said it was $35,000. The Mayor further said the amount set aside would probably be less than $250k.
Ms. Bain mentioned the $250k that was set aside and how they anticipated it probably wouldn't get to that amount. Mayor Knopp responded the city is in a different situation than last year, but they would set aside a reasonable amount and there would be a contingency expenditure. He pointed out there were complaints last year that the amount wasn't high enough.
Mr. Miklave said he wholeheartedly supported the program, its an equitable program deferral of taxes and feels the city owns this to men and women of Norwalk. He noted he was glad the administration followed through with the program.
Mr. Kimmel said he failed to understand the suggestion that there shouldn't be a program, the availability is key and it is not so much how many utilize it but more that it is available. He said he wholeheartedly supported it.
** MR. KIMMEL MOVED THE ITEM FOR PUBLIC HEARING
** MOTION PASSED UNANIMOUSLY
Mayor Knopp spoke about a tax relief program for volunteer firefighters in Rowayton stating that it constitutes a potentially complex program but it's a good idea. He said it would take additional discussion to determine an equitable way to encourage people to sign up. He said there is some question of whether it should only apply to the 6th Taxing District or also to non-residents as well. The crux of the program would involve providing a tax credit. He said he hopes the committee would have the opportunity to hear from some of the volunteer firefighters at some point.
Mr. Barberson a representative said there are thirty-one (31) people who would be active.
The Mayor continued to say he expects there would be an interesting debate but this fact shouldn't be disputed that the 6th Taxing District should authorize a tax credit. He said the volunteer firefighters allow a tax credit dollar for dollar reduction in tax payment. He recommended holding a public hearing to authorize the 6th Taxing District a tax credit based on the mill rate. He said he felt many different parties would come out to speak and he noted this program would ultimately save taxpayers.
Ms. Bain said she appreciated the request for a public hearing in view of the 6th Taxing District that has relied on other resources. She said the district is already highly taxed and it is becoming more difficult for people who live in the area to volunteer. She felt there would be more discussion regarding those who wish to volunteer that don't live in the district.
Mr. Barberson said they were in the midst of the budgeting process
and are making a dollar provision to fund a substantial portion based on people
who own property, the amount being funded is $15k.
Mr. Kimmel said he read it was $22k. Mr. Barberson replied that the final
calculation was $15k based on thirty (30) active members.
Mr. Kimmel asked the average credit given. Mr. Barberson said he wasn't sure of the actual credit but there were thirteen (13) people who qualify for the entire $1,000.
Mr. Kimmel said then if ten of the thirteen would qualify that are homeowners; a senior homeowner would have a $5k credit; pointing out this could present a complex issue.
Ms. Bain said there were various elements to discuss for them to understand the ramifications and implications; she noted that beginning to authorize the 6th Taxing District to offer a credit was good.
** MR. KIMMEL MOVED THE ITEM FOR PUBLIC HEARING
** MOTION PASSED UNANIMOUSLY
Mr. Kimmel asked if the senior tax credit would go up this year. Mr. Whitman said it would be $36,500 for year 2002.
Mr. Miklave requested the committee consider a personal property exemption
for ambulatory type vehicles for citizens with medical or physical impairments.
He pointed out that for many the difficulty of living a normal is exacerbated
by needing a specially equipped vehicle; they have to spend more for these
vehicles and then are also taxed on the value of the vehicle but if they didn't
have the vehicle they would be forced to live a sheltered life, so to ease
the burden, the Connecticut Statute authorizes exemption from a personal property
tax and he recommends adopting a total exemption for these vehicle.
Mr. Kimmel questioned if it would be total exemption. Mr. Miklave said yes.
Mayor Knopp asked if a copy of the state statute was available. Mr. Miklave replied he didn't have it available tonight.
Mr. Whitman commented that when he first came to Norwalk and contracted with other cities that had this assessment, he found Norwalk didn't have one. He said it was recommended to former councils in the past and he was in favor of it. He noted there is flexibility in the program and it wouldn't have to necessarily be for the entire or total value; he said that in ten years, he has received a small request for the exemption. Mr. Miklave acknowledged this might be true stating that although the number may be low, for those that qualify it is important.
Mr. Whitman added that it would be a simple exemption to implement.
Mr. Perone said it's a good idea and he asked how an ambulatory vehicle would be defined. Mr. Miklave said it was defined in the statute.
Mr. Perone asked if someone where to modify a van they already had, would this be considered a vehicle for exemption assistance. Mr. Kimmel replied that it would be important to clearly define the type of exemption.
Mr. Miller commented that he felt there were more than twenty (20) people with this type of vehicle in Norwalk. Mr. Miklave said it would apply only to vehicles owned and those being provided for a fee or service would not be eligible.
Mr. Whitman added that a survey should be done of the financial impact.
Mr. Miller said the success would depend on how the program is developed and the structure of the program would be key.
Mayor Knopp said he thought the definition should apply that municipality may be limited to a certain type vehicle.
Ms. Bain asked if there would further discussion and then a proposal submitted leading to a public hearing. Mr. Miklave said he thought the process should be that it be referred to the law department and then to the Ordinance Committee.
Mr. Kimmel asked if there was a consensus to pass the matter on to the law department. All agreed.
Mayor Knopp noted that not all ordinance changes go through the Ordinance Committee; he said the concern is that all changes in the benefit programs be done in time for the July 1, 2003 tax bill. He further suggested scheduling a hearing to act by the second meeting in January. Mr. Kimmel expressed concern the information for the ambulatory vehicle program would be ready by then. Mr. Miklave said he felt the information could be provided by then.
** MR. KIMMEL MOVED TO SEND THE MATTER OF RELIEF FOR THE
AMBULATORY TYPE VEHICLE TO PUBLIC HEARING
** MOTION PASSED UNANIMOUSLY
** MR. KIMMEL MOVED THAT THE NEXT PUBLIC HEARING BE HELD
ON JANUARY 21, 2003 TO BE HELD IN THE COUNCIL CHAMBERS
** MOTION PASSED UNANIMOUSLY
He stated all information required for this meeting should be available.
BUDGET 2003-2004
Mr. Kimmel said they have a general overview of rough estimates to be discussed in January. He said finance would make recommendations on January 13 and a public hearing would be scheduled on January 22, he said it would be a good idea for the committee to meet afterward. He briefly reviewed the process of setting the cap as set forth by the Common Council and Board of Estimate. He said it's a compressed time frame but they didn't have to make a final decision this month especially since revenues from the state aren't known yet.
Mr. Miller said they would transfer the budget next week and reports would be distributed in the packets. He said the revenue budget rescissions were imposed for the year but he was not sure what the government would propose yet nor was he certain of the grand list, so the budget may have some holes in it but in any event, something would be transmitted on the second Tuesday of the month. He pointed out it would be a horrific year due to putting together a budget under the worst circumstances ever seen.
Mr. Miklave thought the process of setting the budget cap was absurd and he said not knowing the budget for last year and also not knowing it for next year presents a major difficulty, he hoped the process would be more friendly-user in the future.
Mr. Kimmel said they would have a public hearing on January 22 that would allow time to digest the recommendations from the Finance Department. He noted they would schedule a meeting following the public hearing.
Mayor Knopp asked if there would be a committee meeting after the meeting on January 21 to discuss the tax reliefs. Mr. Kimmel replied they could schedule one.
AUTHORIZE THE MAYOR, ALEX A. KNOPP, TO SIGN A CONTRACT WITH RCC CONSULTANTS
TO PERFORM AN INFORMATION TECHNOLOGY COMMUNICATION NETWORK STUDY FOR A SUM
NOT TO EXCEED $75,000.00
** MR. KIMMEL MOVED THE ITEM TO COMMON COUNCIL
Mr. Miklave good-naturedly commented it was stunning knowing how complicated technology is and it was about time they were bringing the City of Norwalk up-to-date with technology into the 21st century.
** MOTION PASSED UNANIMOUSLY
Mr. Kimmel commended the technology department in the early days of the Mayor's administration in a great job done noting how hard they worked.
ADJOURNMENT
** MR. MIKLAVE MOVED TO ADJOURN
** MOTION PASSED UNANIMOUSLY
The meeting was adjourned at 9:30 p.m.
Respectfully submitted,
Diane Graham
Telesco Secretarial Services
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