TOWN OF SOUTH WINDSOR
MINUTES
TOWN COUNCIL WORK SESSION
COUNCIL CHAMBERS JANUARY 20, 2004
SOUTH WINDSOR TOWN HALL 7:00 P.M.
1. Call Meeting to Order
Mayor Havens called the meeting to order at 7:05 p.m.
2. Roll Call
Members Present: Mayor Edward Havens
Deputy Mayor John P. Pelkey
Councillor William Aman
Councillor Thomas Delnicki
Councillor Deborah Fine
Councillor Judith Paquin
Councillor Elizabeth Pendleton
Councillor Matthew Streeter
Councillor Muriel Yakavone
Also Present: Town Manager Matthew B. Galligan
Town Attorney Barry D. Guliano
Public Participation - None
Communications – None
Town Manager’s Report – None
Items for Discussion
Possible Fiscal Affects of Granting Tax Abatements/Exemptions on Farm Buildings (See Attached Exhibit A)
Town Manager Galligan said he would be addressing the Council this evening, as the Town Assessor was absent due to a death in his family.
According to Town records, there are 252 “outbuildings,” on 93 accounts, which means there is the possibility of total assessments of all buildings of $1.2 million. This multiplied by the current mill rate of 29.79
6. A. (Continued)
would provide a decrease in tax dollars of $34,000. He explained that this would be a “worst case scenario,” as this would be if every building was able to take part in the program.
Continuing, Mr. Galligan explained that there are about 23 accounts which would be eligible for the program, since an account must first qualify for the “farm machinery exemption program” before it would be considered. If each building was worth $100,000 (the maximum amount), the total exposure would be $68,000 in taxes to the Town. Since most would be worth far less than $100,000, the worst case scenario would be about $34,000 in taxes.
Mr. Galligan said that completion of an application would be necessary prior to consideration. It was requested that Mr. Danna appear before Council to explain what the criteria would be as well as what requirements would be found on the application.
When asked if the buildings for which applications were submitted would be inspected, Mr. Galligan responded that inspections would be made.
Mr. Galligan explained that some of the farm machinery exemptions are “already on our books.”
Regarding the amount of abatements, Mr. Galligan said he believed it would be 100 percent. He indicated that paperwork could be prepared showing the Council what the application would be like, what the laws are, and the purpose of the legislation. Mr. Havens requested further information, and Mr. Galligan said he would have Mr. Danna prepare an analysis of the accounts.
B. Recent Changes in the Exemption Status for Veterans
Two changes in the Veterans’ exemption were explained by Mr. Galligan. The assessment allowance went up to 10 percent of the total value of a qualifying income. The qualifying income limits have been raised to $51,100 and $56,900 for a married couple. The Town currently has 285 low income, elderly or disabled accounts, of which 132 are State qualified low-income Veterans. Therefore, this program, keeping the
6. B. (Continued)
same income levels, the additional taxes to be lost would be about $18,500. With the raised income levels of $51,100 and $56,900, we
cannot determine what the effect would be, as we don’t know how many people would or could apply. Mr. Galligan said he would attempt to obtain information from the State census records concerning income levels.
Councillor Aman questioned whether we had to go up to $51,000 under this program, and Mr. Galligan responded that he didn’t believe so; the law is unclear and he said that Mr. Danna, through the Tax Assessors’ Association, is trying to get a legal opinion.
C. Update the Town Council on Total Dollar Amounts Associated With Tax Exemptions/Abatements
Mr. Galligan indicated that the Town is involved in every program the State has had relating to tax exemptions and abatements, and we are at the maximum allowed by law.
Executive Session
A motion was made by Deputy Mayor Pelkey to go into Executive Session to discuss issues relating to the Town regarding the lease, sale, or purchase of real estate. The motion was duly seconded and was unanimously approved.
Adjournment
The meeting was adjourned at 7:48 p.m. following the Executive Session.
Respectfully submitted,
Merlyn P. Guild
Assistant to the Clerk of the Council
Attachment – Exhibit A
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