HomeMy WebLinkAbout2012-01-24 Finance Committee Minutes
SPECIAL FINANCE COMMITTEE
January 24, 2012
Minutes
Councilors: Durgin, Baldacci, Blanchette, Gallant, Gratwick
Staff: Conlow, Cyr, Little
1. Consent Agenda
a. Write off of Taxes – 368 Finson Road
b. Write off of Taxes – Various Mobile Homes
Cyr noted that the first item is an Assessing Department error. A mobile home was
moved and had mistakenly been assessed twice. The City Assessor has the ability to
abate the current year but not to go backwards. Approval of this item would abate the
double assessment for FY2011. The second item relates to six mobile homes that have
been moved totaling $1,392 in outstanding taxes. The owners did not notify the City of
the move.
A motion was made and seconded to approve the Consent Agenda items.
Gallant spoke of holding the mobile home park owners responsible for the units within
their individual parks through a registration process. Little said that staff would look
into the suggestion with the Legal Department. Gallant suggested an ordinance that
would require the park owner to keep the necessary information on file of the owners
of the individual trailers within the park in order to provide a better paper trail and to
keep the owners liable for their property taxes. Little stated that the Assessing
Department is in contact with all park owners and that’s how the information is updated
to change names each year. Some parks do not have fulltime, onsite management and
trailers get moved. Blanchette noted that transfer plates are necessary through the
State to move a mobile home and wondered if municipalities could receive a copy of the
paperwork. Baldacci mentioned an existing State law and asked staff to report back on
its enforcement requirements. Little said that the current law and procedure requires a
taxpayer to pay all outstanding taxes in order to move a mobile home. The Treasurer
provides a signed form indicating that there are no outstanding tax and sewer charges.
That form then goes to the DMV. DMV then issues the permit to move the trailer.
Some are, obviously, moved without a State permit. Little would need to check with
DMV to see if they can track or confirm issued permits. Gallant and Durgin agreed to
further research but not spending more money that what is currently owed.
A motion was made and seconded to approve the Consent Agenda items. The vote was
unanimous.
2. Maine Resident Military Excise Tax Exemption
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Little noted that a new law went into effect on January 1 of this year allowing for a
local ordinance to expand the Military Exemption of Excise Tax. Little recommended
that an ordinance be drafted and approved stating that any Maine resident in the US
Armed Forces permanently stationed outside of Maine or a Maine resident in the
National Guard or Reserves who has been deployed or being deployed for more than
180 days in a combat theater would be exempt from excise tax on their vehicle
registrations. Little recommended that this action be retroactive back to January 1,
2012. A motion was made and seconded to approve staff recommendation.
Responding to Gratwick, Little said there is no limit to the number of vehicles but the
vehicles must be registered in just the military service member’s name. It is an
unknown loss in excise tax because there is no way to know how many Bangor
residents will qualify. Little said he looks at this as more related to fairness where there
is a certain group of Armed Forces members who already enjoy that exemption and this
will bring in the ones previously excluded. In response to Gallant, Little said if the
military member is in the Guard or Reserve they have to be deployed to a combat
theater for more than 180 days. The exemption is only for that one year. The military
individual is required to bring the City a statement from their Commander regarding
their status. In response to Baldacci, Little said the current definition is ‘active military
duty where the duty assignment is in a combat theater or in any area where armed
conflict is taking place.’ The vote was unanimous.
3. Finance Committee Resolution Approving the Details of the City’s
$6,525,000 2012 General Obligation Refunding Bonds
Cyr stated that bonds were sold this morning. The majority of the $6.5M was to
refinance $5.3M of outstanding 2002 bonds and $1.2M was added for projects that
were approved as part of the recent budget process. The estimated savings was
$500,000 and the actual savings was $600,000 over the next 10 years. The savings will
be spread fairly evenly across the General Fund, the School Department, and a couple
of Enterprise Funds. Cyr said the City typically issues bonds through the competitive
market and noted that 9 bids were received from underwriters. She provided copies of
the Resolution for the Committee’s review. Responding to Blanchette, Cyr said the
City’s financial advisor provides guidance and Bangor seems to do better than others.
Blanchette suggested the City issue a press release about this savings. Gallant agreed.
A motion was made and seconded to accept staff’s recommendation. The vote was
unanimous.
Committee adjourned at 5:30 pm.