Loading...
HomeMy WebLinkAbout2009-01-28 Finance Committee Minutes FINANCE COMMITTEE January 28, 2009 Minutes Councilors: Stone, Bronson, D’Errico, Hawes, Palmer, Wheeler, Nealley Staff: Barrett, Cyr, Cammack, Hamilton, Fraser, Drew, Gardner 1. Consent Agenda A motion was made and seconded to approve the Consent Agenda. a. Resolve, Accepting & Appropriating Shelter Plus Care Tenant Based Grant Renewal from HUD b. Resolve, Accepting & Appropriating Shelter Plus Care Project Based Grant Renewal from HUD c. Resolve, Appropriating $184,500 in Assistance to Firefighters Grant and $20,500 in Local Match for Replacement of Tanker 6 d. Workout Agreement – Shirley 385 Fern Street 2. Bids/Purchasing a. Overhead Doors – Fire Station 6 – Overhead Door Company - $11,425 Cyr stated this item is for purchase and installation of overhead doors for the new Station 6 on Griffin Road. Two bids were received. A motion was made and seconded to approve staff recommendation. In response to Stone, Cyr said that the project is on track with an opening of the facility scheduled for April 1, 2009. b. Sodium Hypochlorite – WWTP – GAC Chemicals – $106,080 Cyr said this is a chemical used in the treatment process at the Wastewater Treatment Plant. Typically, the City goes out to bid for this item annually or once every 2-3 years. The proposed contract is different in that chemical costs have been volatile and staff recommends a one-year contract with two one-year extensions. 7 bids were issued and only one response received from GAC Chemicals at $1.02/gallon, a 20% increase in current costs. Responding to Stone, Barrett indicated that there is a Wastewater Treatment Association in Maine and New England but that he is not aware of joint purchasing of products. Barrett said he would check with Brad Moore and report back to Stone. A motion was made and seconded to approve staff’s recommendation to the full Council. 3. Presentation of FY 2008 Audit Results nd This item was postponed to the February 2 Finance Committee meeting. 4. Assessors Update – Personal Property Phil Drew, Appraiser, and Linda Gardner, Personal Property Clerk, from the Assessing Department addressed the Committee regarding personal property. Responding to Stone, Drew said the purpose of the presentation is to provide information about personal property tax information for businesses. The Assessing Department is required to discover the personal property and place a tax upon it, which helps reduce the tax burden from the individual real estate taxpayers. Drew noted that the second portion of the presentation is to speak about the ratio of the City which is basically the relative nature of the assessments versus the market value of Bangor properties. Handout materials were provided to Committee members. Notices are sent to businesses by the City and businesses are asked to report to the City their equipment, furnishings, leasehold improvements, etc. The businesses also receive a form with listed assets from the previous year. Last year, there were 2,763 taxable personal property accounts on April 1, 2008 which approximates $5M in tax dollars annually to the City. In January 2009, 2,270 declaration forms were mailed out by the City. Drew expressed appreciation to the City’s Central Services division that provides all the printing for the forms and letters and to the Treasury Department which places postage on each piece of mail. The Assessing Department also tries to introduce businesses to the BETR and the BETE tax exemption programs. This information is provided by a mailing. In 2009, 295 Bangor businesses submitted applications to the state were processed for the BETR program. The potential tax dollars being returned from the State of Maine to Bangor businesses total $2,177,977. In 2008, 92 Bangor businesses filed paperwork for the BETE program with the City of Bangor and were granted exemptions on qualified property. Those businesses saved a little over $162,000 in taxes at the municipal level and the State of Maine reimbursed the City of Bangor for that same amount on December 23, 2008. Barrett noted that the State’s reimbursement amount will be reduced over time down to 50%. Drew then spoke about the ratio sales analysis and quality results. Municipal assessors by State Law are required to conduct annual sales ratio studies. Each municipality is required to achieve a minimum assessment ratio of 70% and a maximum assessment quality of 20. The sale period of this study was from July 2007 to June 2008. The sale prices are compared against the April 1, 2008 total assessed value prior to any exemptions. The assessment is shown as a percentage of the sale price. A percentage below 100% represents under-assessment. A study of single family homes that have sold in Bangor since July 1, 2008 through December 31, 2008 showed that 92 single family homes sold with a median ratio of 94%. In the 2007-08 study, the median was 92%. The median sale price decreased from $156,000 in 2007 to $147,150 in 2008. Barrett said there has been a dramatic drop in real estate values in parts of the country and one of the messages helpful for Bangor taxpayers for better and worse is that on the better side Bangor hasn’t seen that dramatic decline. There has been some reduction in values. On the other side, Barrett said that most Bangor taxpayers will not necessarily see a reduction in their assessed value next year simply because Bangor is roughly under 10% in under-assessing properties on average. 5. Order, Authorizing the City to Accept Donations toward th Expenses Associated with Bangor’s 175 Birthday Celebration Stone asked Barrett to lead off the discussion. Barrett turned it over to Palmer. Palmer noted that due to the economy the City needs to be financially frugal and he feels that the birthday celebration committee has not spent any money to date. He noted that City services and staff have been used. On February 12, the kick off event will be at the Bangor Auditorium. Palmer agreed that a budget needs to be put together. He spoke about the proposed Order which would authorize solicitation of donations. He noted that the committee was formed very quickly and that all Council Members have been invited to attend. Councilors Hawes and Nealley have been very involved along with Palmer. Barrett ran through a budget which he noted was a combination of out of pocket expenses and also in-kind expenses. For the February 12 event, normally the auditorium would rent for $1,400 but the building was not th previously rented for the 12. Billable expenses are associated with set up, clean up, personnel staff of about $500. The Council carries a line item in its budget for Bass Park Rental, which can be used to offset costs for non-profit organizations, who request and meet certain criteria. Building, tearing down and cleaning up for the planned bonfire is approximately $360 which is personnel costs associated with Public Works employees. It would most likely be an in-kind cost because they will do the work during normal hours. The Fire Department will assign two extra duty officers to be present during the bonfire. It is an out of pocket expense of $364, and it could certainly be taken from the Fire Department’s overtime budget. United Technology College has offered to bake four cakes if the City supplies the materials for $100. The Carter Boy’s band entertainment has requested for reimbursement of their transportation costs of $75. The Bangor Band will also be providing entertainment at no cost. Printing of flyers for the event is estimated at $350, and printing programs will be $230 or so. Supply costs are estimated at $759. There is adequate funding in the Council’s printing budget should the Council wish to do so. Barrett complimented the Council on being very frugal this year. In total, the estimated cost for direct and in-direct costs for th the February 12 event is $3,300-$3,400. Barrett noted that there had been some discussion at the birthday committee level of a Bangor Daily News insert for $3,000. McKay has a small marketing budget and most is earmarked for specific items. There is, however, a section of that budget that is set aside for ‘community support marketing’ and could be used for that purpose should be Council desire. There has been discussion about printing bookmarks and bumper stickers at an estimated $550. Palmer clarified that there had been discussion about producing Paul Bunyan medallions to be given away. The number to be produced has not yet been decided upon by the committee. A commemorative t-shirt has been looked at with the idea of selling them th starting on February 12. At $10/each, costs would be reimbursed. In moving forward, the birthday committee plans to use existing events as a way to highlight the occasion. th Palmer noted a soon to be released Boston Globe article regarding the 175. He thinks a BDN insert price could be shaved. He noted that throughout the year the Parks and Recreation band shell might be needed and would be another in-kind cost to be considered. The estimated cost of this celebration th compared to the celebration 50 years ago as well as Bangor’s 150 in 1984 was compatible. He stressed that this is the wrong time to be spending big th money on the 175 and it would send the wrong message to taxpayers. Hawes agreed that this event has gotten a little further ahead of itself than expected when the committee was formed. The initial plan was a simple, fun th kick off on February 12 and then reconvene the committee to look at what else can be dovetailed with throughout the year; i.e. The American Folk th Festival, 4 of July Parade, etc. Hawes said that the 500 t-shirts presented the most reasonable per shirt cost. Varying sizes have been ordered and the order has not yet been completed at this point pending this committee’s direction. 500 shirts will th most likely not sell on February 12 but they would be available throughout the year. Initially, there was an agency that offered to purchase the shirts, th sell the shirts and return the net proceeds to the City. The 175 committee was advised that it was not a good way to proceed and that the t-shirt purchase and sales should be processed through a City account for better accountability. Hawes indicated there have been other conversations regarding a newspaper insert. There is a City employee who has expressed interest in taking on this project at a lesser than $3,000 cost. The bookmarks are something to hand out to individuals at the first event. Others will be printed during the year and made available for free at upcoming events. At a minimum, Hawes told the committee that it needed to nail down plans th for February 12. To back out at this point, would not set well. After th February 12, the 175 Committee will reconvene to look at individual events, one by one, and coming back to the Finance Committee with proposed budgets and onto the Council. Bronson spoke about the lack of organizational time for the event and the th large budget associated with the 125 celebration. He did note that it was not the City alone but the event also involved the Chamber of Commerce and th many other organizations. Palmer said that the 175 Committee has been in place for thirty days. The River City Festival budget was well over $100,000. He agreed that February 12 needs to happen. Bronson asked if the proposed budget presented by Barrett is for the entire year. Palmer said there is a plan underway with events that can be utilized th throughout the year; i.e. 4 of July Parade. Many events will be low or no th cost. He noted that the 175 Committee is represented by the Chamber, the BCVB, and Bangor Public Library. Nealley agreed that dovetailing with various upcoming events. He said the budget for any celebration needs to be as lean as possible. He thinks that the BDN insert makes good sense. He expressed great reservations about the donation proposal for event sponsors. Barrett clarified that the Code of Ethics covers this area of solicitation. It is a Council adopted ordinance, not a charter change. Councilors and certain designated staff individuals are not allowed to ask for contributions for City purposes without Council permission. It would require a Council Order. Hawes said that going forward throughout the year that the 175 Committee needs to come back to the Finance Committee with the three solid events to dovetail with and a proposed budget. She is not convinced that a $3,000 insert is necessary. The Weekly, Bangor Metro, and The Edge can be used to get the message out to the public. th Hawes recommended that within the next month that the 175 Committee lay out a strategy of exactly what they are looking to do through the year and bring them back to the Finance Committee with proposed budgets. th Regarding February 12, Hawes said two things need to be determined by the Finance Committee: will there be an event on February 12 and will the t- shirt order move forward. th Palmer said the 175 Committee has met three times to date and the meetings have all been televised and rebroadcast in high rotation. th D’Errico agreed with the February 12 event and felt that outlined costs are reasonable. He asked about waiving auditorium costs. Barrett explained that the Council’s budget carries a line item of $5,000 that it can use to pay for the cost of certain non-profit groups that meet certain qualifications to use the Auditorium and Civic Center. To date, no funds have been expended. th D’Errico said he supported the events of February 12. As far as future activities, he felt they needed further consideration. th Hawes made a motion that the February 12 event move forward to be held at Bass Park which will include a bonfire, hot chocolate/coffee, cake and there are two providers of music. The fire will be started at about 5 pm, and the actual event is booked from 6-9 pm. Nealley seconded the motion. Stone noted that all were in favor. Regarding t-shirts, Bronson agreed with proceeding but felt the retail price is too low. Nealley agreed. D’Errico agreed as costs will be recovered. Hawes made a motion that 500 t-shirts be purchased in multiple sizes and that they th be made available for sale on February 12 and to be sold throughout the th year. She felt that $10 was an economical price but the 175 Committee agreed with the $10. The motion was seconded by Bronson. Stone opposed the motion as well as Councilor D’Errico. Responding to D’Errico, Hawes said the birthday logo was designed by the Central Services Division. The shirts are classy looking. th Responding to Stone, Barrett suggested to follow up with the 175 Committee asking them to return with a schedule of specific events and an estimated budget for each for the Finance Committee’s review. Clearly, all have spoken that everything should be done as inexpensively as possible. th Wheeler agreed that the recognition of Bangor’s 175 is a good thing. He th noted that in 1984, for the 125 celebration the budget was in excess of $100,000. There was a shortfall and he recalled that the Council approved a $10,000 or $25,000 appropriation to cover the shortfall. Wheeler spoke about various events that took place that year. He said that planned events need to be attractive and accessible. Hawes said, regarding the Council Order for donation solicitation, originally it sounded like a good idea. In hindsight, she felt it might place Councilors in positions where they don’t necessarily want to be in. She noted that she would not support the Order at this point. It seems no longer feasible. Stone agreed with Hawes. No motion was made on the proposed Order. It failed. th Hawes asked Palmer if the 175 Committee would come back to the Finance Committee with an outline of upcoming events with budgets. Palmer agreed. Committee adjourned at 6:15 pm.