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THESE MINUTES ARE SUBJECT TO APPROVAL BY BOARD OF FINANCE
The Board of Finance held a regular meeting on Monday, February 11, 2013 in the Council Chamber, 3 Primrose Street, Newtown, CT. John Kortze called the meeting to order at 7:35 pm.
PRESENT: John Kortze, Joseph Kearney, James Gaston, Jr., Richard Oparowski, Harry Waterbury and Carol Walsh.
ALSO PRESENT: First Selectman E. Patricia Llodra, Finance Director Robert Tait and Tax Collector Carol Mahoney.
VOTER COMMENTS: Jeff Jackson, 6 Rowledge Pond Road, Sandy Hook spoke about the property tax increase since moving here in 1985. He is concerned about the future, living on a fixed income. The senior tax program does not address compounding. He thinks the benefit should be adjusted as the tax rate increase. The only other option is to move away from their children and grandchildren and they don’t want to do that.
COMMUNICATIONS: Many emails regarding security in the schools were received (Att. A).
MINUTES: Mr. Kearney moved to accept the minutes of January 24, 2013. Mr. Waterbury seconded. Mr. Oparowski asked to change the wording on page two, paragraph four from there are significant corporate donations available to there may be significant corporate donations available. All in favor of the minutes as amended.
FIRST SELECTMAN REPORT: First Selectman Llodra spoke about grants being pursued to address costs related to the shooting on Dec. 14. The COPS grant (Att. B), the SAMHSA grant (Att. C) and the SERV grant (Att. D). There is also a very active grant that Mr. Tait is a part of, run by the office of victim services; a flow through grant, to cover costs up to date related to managing the events of 12/14, including police overtime. Praxair has made a donation to fund a position at Newtown Youth & Family Services. First Selectman Llodra suggested having EDC members attend a meeting to discuss the STEAP grant relative to Sandy Hook businesses. If the full amount of the grant is not used anything remaining would go to the Sandy Hook streetscape. Mr. Kortze spoke about the charter
and asked for a generic impact statement for these grants.
Mr. Kortze received an email and minutes from Mr. Mangiafico (Att. E). First Selectman Llodra noted that it is worthwhile to read the document and the minutes very carefully. The request includes adding back police officers that have been reduced over time; it is not only about school security. The Board of Finance has the authority to increase the budget.
Mr. Kortze reported the committee voted on the CIP but he does not think the entire Council did. Barry Bernabe presented to the Council. There was a specific notation of the rating agencies guide lines regarding percentage of fund balance.
FINANCE DIRECTOR REPORT: Mr. Tait reviewed some of the budget report and passed out the proposed Board of Selectman budget (Att. F). Mr. Kearney asked if Mr. Tait had discussed the idea of eliminating the motor vehicle taxes and the effect on the budget. Mr. Tait said he does not think that will pass but can be deferred a year.
Mr. Kortze noted he will be the Board of Finance representative in the group relative to the input data collection regarding the fate of Sandy Hook School and the site. (Att. G)
UNFINISHED BUSINESS
Discussion and possible action:
- Policy on depositing unexpended funds to the Capital/Non-Recurring fund: item not discussed.
- Board of Education Reserve Fund Statute: item not discussed.
- Newtown Board of Education Monthly Financial Report 12/31/12: Att. H
- Town of Newtown Year to Date Budget Report: Att. I
NEW BUSINESS:
Discussion and possible action:
- Senior Tax Relief Program: Ms. Mahoney was present to discuss senior tax relief. Mr. Kearney questioned what determines who gets the tax relief and how much they get. He said that a person can have no source of income but have a significant amount of assets. The benefit is paid for by the tax payers. He thinks applicants should supply tax returns and any other sources of assets. Ms. Mahoney spoke with a few accountants, one of them said that it would be difficult to administer asset testing because the tax return does not show assets; in most cases if they had assets it is reflected in their investment income. Ms. Mahoney has been hearing for 25 years that if it were not for this benefit a lot of seniors would not be able to stay in town. Most other towns do not do asset
tests. Mr. Kortze believes municipal income has to be reported but may not be taxable. Mr. Kearney is in favor of the benefit but thinks it should pass the test of fairness. First Selectman Llodra said that the CEO’s of the ten town region we belong to said that there is no structure, no process, no system that is workable without intruding into personal space. Mr. Oparowski said it is a benefit funded by the tax payers; if they find it too intrusive then don’t apply for the benefit. Ms. Walsh agrees a means test should be required. Mr. Waterbury questioned if any other towns do this. First Selectman Llodra said Fairfield does and they also freeze taxes. Mr. Tait said Fairfield does not have the staff, time or funds to do an audit, they take an affidavit. Mr. Gaston agreed it would be nice to have an asset based evaluation. He asked if an increase would be requested even if the number of eligible people decreases. First Selectman Llodra noted the population with an income
of $45,000 or less is who needs the most help. That population will continue to be the neediest population; we will find increasing numbers there. Mr. Tait said there is no issue with affidavits but he is concerned with the extra burden on the staff which is already swapping staff between the collector and the assessor. Mr. Kortze said discussion revolves around the tax relief for the upcoming budget, what is the best way to implement a means test and how address the escalation. Mr. Oparowski thinks if assets are greater than $100,000 they should be listed. Ms. Mahoney will have all towns and cities in CT surveyed to see what they do. First Selectman said that it will lead to the necessity to interview each applicant. Mr. Kearney moved to approve the proposed new Senior Relief Tax program subject to the formulation and completion of an affidavit attesting to the fact that the assets of the applicant do not exceed $250,000 and not
including the primary residence. Mr. Waterbury seconded. Ms. Mahoney questioned if the ordinance had to be changed. She also voiced concern about the time constraints. Mr. Kortze stated the motion is only a recommendation to the Legislative Council. First Selectman Llodra said the Board of Finance does not have the authority to set the limits. Mr. Kortze moved to amend the motion on the floor by recommending that the Board of Finance, in its advisory role, recommend to the Council moving forward with the senior tax relief plan that is presented and, if administratively feasible, implement a means test to incorporate a number that is consistent with other municipalities to the extent we can get that information and an affidavit, exclusive of the primary residence. Mr. Waterbury seconded. The amendment passed 5-1 (YES: Kortze, Gaston, Oparowski, Waterbury, Walsh, NO: Kearney). (Att. J). The main motion: Mr. Kortze moved to
recommend that the Board of Finance, in its advisory role, recommend to the Council moving forward with the senior tax relief plan that is presented and, if administratively feasible, implement a means test to incorporate a number that is consistent with other municipalities to the extent we can get that information and an affadavit, exclusive of the primary residence. Mr. Waterbury seconded. The motion passed 5-1 (YES: Kortze, Gaston, Oparowski, Waterbury, Walsh, NO: Kearney)
- Input for Charter Revision: The Council tabled this and kept the charge committee in place; they likely will not convene an official charter revision this year.
- Approval of Town of Newtown 2013-2014 budget dates: The Public hearing on the 2013-2014 budget will be held on Thursday, Feb. 21, 2013 at 7pm in the Council Chamber. No action was taken on the budget dates.
- Transfer: Mr. Kearney moved the $20,000 transfer from Contingency to Legal Services – other. (Att. K). Mr. Waterbury seconded. All in favor.
ANNOUNCEMENTS: none.
ADJOURNMENT: Having no further business the regular Board of Finance meeting was adjourned at 9:05 pm.
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Susan Marcinek, Clerk
Att. A: Emails regarding security in the schools
Att. B: COPS grant
Att. C: SAMSHA grant
Att. D: SERV grant
Att. E: email and police commission minutes from P. Mangiafico
Att. F: proposed Board of Selectman 2013-2014 budget
Att. G: memo from First Selectman Llodra re: Sandy Hook School, dated 1/29/13
Att. H: Board of Education Monthly Financial Report, 12/31/12
Att. I: Town of Newtown Year to Date Budget Report
Att. J: Senior Tax Relief Program
Att. K: $20,000 transfer
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