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FINANCE / CLAIMS
COMMITTEE ACTIONS
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MARCH 13, 2003
Approved FJG 06/12/03
ATTENDANCE: Douglas Sutton, Chairman; Matt Miklave; Ken Baker; Chris Perone.
STAFF: Fred Gilden, Comptroller..
PUBLIC HEARING
The meeting was called to order by Mr. Sutton at 7:45PM. Everyone
stood for the pledge
of allegiance. He then read the items up for discussion and opened the floor
for comments.
1. WHETHER NORWALK SHOULD EXERCISE THE OPTION GRANTED BY STATE LAW TO INCREASE THE MUNICIPAL PORTION OF THE REAL ESTATE CONVEYANCE TAX FROM .25% TO .50% OF THE SALES PRICE DURING THE LIMITED PERIOD JUNE 1, 2003 TO JUNE 30, 2004 AS A TEMPORARY MEASURE TO REPLACE STATE FINANCIAL AID TO NORWALK THAT HAS BEEN CUT.
Mr. Kettle, a resident of Admiral Lane in Norwalk, began by stating that he respected the officials and understood that financially, the City was experiencing hardship. However, he asked that the fairness of the levy be seriously considered before it was adopted. He added that it was unfair and discriminatory to isolate only one segment of the community to be responsible for funding the budget gap. He continued to say that just because the State empowered them to do it, that there was no logic to using it except for the fact that the City was in a jam. He stated that everyone should be made to pay their fair share. He suggested placing a surcharge on property tax would be a fairer approach than utilizing the conveyance tax increase.
The Mayor spoke next, urging the Committee to utilize the authority granted to increase the conveyance tax. He added that it would help to fill a pivotal void that had been left due to the many cuts in State aid. He pointed out that this budget year showed that Norwalk received 7 million dollars less from the State than they had in previous years. However, there were more mandates and other burdens that have been placed on municipalities which make the imposed on them. He said that in 2001-2, Norwalk received 17.5% of its operating revenues from non-tax sources. The budget that has been recommended for this year only showed 13.5% in non-tax sources due to all the State cuts and loss of income revenue. Mayor Knopp continued to argue that the partnership between the State and the municipalities had been broken and that in Connecticut, the municipalities were creatures of State Law. Which meant that they were not allowed to raise revenue by any other means except those that were authorized by the State. He agreed that there were better ways to fix the budget gap than utilizing the conveyance tax but unfortunately, it was the only option given by the State. He added that Connecticut had the 3rd highest property tax in the nation and was overly dependent on tax to raise revenue. He pointed out that 47 other states allowed their municipalities other ways to raise funds but Connecticut did not. Therefore, they could not afford to not take advantage of the one option they had been given. He said that raising taxes or adding a surcharge would be unfair because taxes were not based on income but on assessed property value. He stated that it was a better option to utilize this temporary solution because it's removal would be equivalent to the salaries of 38 teachers. He then urged the Committee to approve the conveyance tax.
2. WHETHER NORWALK SHOULD EXERCISE THE OPTION GRANTED BY THE STATE LAW
IN SECTION 53 OF HOUSE BILL 6495 TO RESTORE ITS PERSONAL PROPERTY TAX LEVY
ON MANUFACTURING EQUIPMENT LIMITED TO THE DIFFERENCE IN THE AMOUNT REIMBURSED
TO THE STATE AND THE AMOUNT DUE THE CITY ON ITS GRAND LIST FOR SUCH PERSONAL
PROPERTY USED IN MANUFACTURING.
There was no discussion on this item.
Mr. Sutton closed the public hearing at 8:00PM.
Respectfully submitted,
Michele Montgomery
Telesco Secretarial Services
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