Loading...
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 st 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.