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HomeMy WebLinkAbout1998-07-20 Finance Committee MinutesFinance Committee Meeting Minutes July 20, 1998 Councilors Attending: Jim Tyler, David LeM Joseph Baldacci, Michael Crowley, Gerry Palmer StaffAtt®divg: Edward Bameh, Ron Heger, Mary Anne Chabla, Erik Sampled 1. Executive Sessions: a. Hardship Abatement Request - Cannot &Nadine Lang -154 Grove Street - Waive Foreclosure on their 1998 taxes and enter into a workout agm nneut for taxes due. b. Hardship Abammmt Request - Betty White/Kellie Jackson- 5 Grove Street Court - The abatement was denied Owners to enter into a workout agreement for taxes owed a. Hardship Abatement Request - Damn Hightower -64 Elm Street -The abatement was denied. Owner to enter into a workout agreement for taxes owned. d. Hardship Abatement Request -Russell Thayer -15 Highland Avenue - The abatement was denied. Erik will draft a tax mortgage for execution. 2. Municipal Ouitda'm Deedx(LWAIJ City Solicitor explained that there were a number of properties m 1992 and 1993 where totes were paid prior to the lien foreclosing. Discharges were not issued a[ the time and quit claim deeds are now needed The recommendation is to issue quit claim deeds on all the properties. Approved. _ 3. Personal r r (Thomas Bennett) City Assessor explained that staff did an estimation of personal property valuation in 1997. Priorto that date, it was stall's understanding that when Cole's Express want out of business, Mr. Bennett acquired some of the equipment. Assessing sant a request for a declaration to be filed. Assessing's records are somewhat unclear. Normally there would be a print arm and documentation no each of the accounts. Because this was a new account all that staff has is a hand written notation from Lillian Smith that the account was opened up and no that same day, three other accounts were mailed declarations. Atter that time spot, Mr. Bennett wrote and requested that staff forward a declaration far him to fill out His letter indicates that he may not have received the original mailing. When he Sled for an abatement, the Assessing Department's time limit had expired in order for the City Assessor to issue the abatement. It is now before this Committee for approval. Approved recommendation to full Comead, 4. Kldal a. Printing Papa (City Wide) XPEDX of Portland ($27,540.84) Approved. 5, Eradneerhes Services Contract Agreement wqtb Edwards & Kelsey Ar DCPQ Bob Ziegelaar explained that this is a straightforward contract for engineering services. Approved. 6. n City Manager explained that it came to staffs attention that the City of Portland has reamortized then payment schedule Som the original 30 years. Under the current schedule, the amortization of (he $34 million currently, there is an almost $2 million payment. That payment will overseas 6%every year until the final payment n made in the year 2017 in the amount of almost $5.7 million. By reamorGang, it would go down to a 3% mutual increase. The downside is that even on a present value basis, it costs more over the entre period of time, however another factor that enters in is that at the present time there is a significant difference between the actuarial value of the City's account with Maine State and the market value of that account The actuarial value is based on purchase price of the security or investment at the time of purchase inflated 89/6 peryearovertime. The market value reflects current prices. The lastfewyear in Maine State, there has been a much higher rate ofnoun item the Sa/o. On the actuarial basis, we are 60'/ funded and on a market basis 80%. Potentially one of the things that happens by lengthening the payment schedule out, if the rote of mount is better than 80/% over time, you can essentially lower some of the numbers at the end of the payment period. The downside is clearly that over time, it costs more. Short tern for the next 19 years, less would be paid, but over a 30 year period instead of a 19 year period. City Manager Fd Barrett recommended this change because it evens out the 6% curve to a 3% crave, and it buys some additional time. Councilor Tyler asked what assumptions were made on growth and taxable value in regard to the tax rote impact information which was presented? Aon Heller answered that he didn't feel that any assumptions needed to be made about growth and taxable value if you are comparing the two amounts. Approved recommendation to Council. 7. ilfidate on Pr9gms - Auditor's Management IettComment (Fo) (Tabled from last Meeting) Icon Hitler updated the Committee on the three reportable conditions. a. The School Department which is been fixed. b. The extra cash drawer bas been taken care of. The extra drawer was taken out. Everyone has been assigned a drawer. C. Sewer system controls are still being worked on with the Water District. Some of the other issues in the letter will be taken care of as systems are upgraded. Computer capability and disaster recovery plan are items that are being addressed The issue of golf cause receipts is being taken care of. There is a new register that provides two receipts and an internal copy. The Yew 2000 compliance is being worked on. Those machines that need updating are being targeted by staff. Ed explained that there are a number of items that relate ro software problems in what software the City still has. These items will not be fixed until the new software is installed. Because of that, some of these commanda will be in this year's report again. Ron is confident that the City is in good shape for the audit. 8. Resolve, Making an AIWmpriation form the Mall Area Traffic Impa Account to the Capitol Fund for Purposes of Relocatong Kittredge Road An audience member spoke to the Committee on behalf of her sister. She indicated that her sister hadn't been notified of this. Ed Barrett explained red a6 this action does is appropriate the funds and once Out is done, staff would work with those who have property and alignment issues. Committee recommended to NII Council. 9. Rtwoe& XAccepting andAppropriating 1200 Contribution from Edge Norton for the Puroose of Purchasing Four New Wheelchairs for the Bangnr Committee approved