LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE
The Legislative, Finance, and Administration Committee meeting was held on January 12, 2009 at 6:00 p.m. with Chairman Slavin presiding. Members present were Mr. McGlumphy, Mr. Salters, Dr. Jones, and Mr. Shevock. Other members of Council present were Mr. Leary, Mr. McGiffin, Mr. Ruane, Council President Hogan, and Mayor Carey.
AGENDA ADDITIONS/DELETIONS
Mr. Salters moved for approval of the agenda, seconded by Mr. Shevock and unanimously carried.
Proposed Resolution - Requests to General Assembly to Amend City of Dover Charter
As a part of the City’s Charter Review Committee’s recommendations, Mr. Slavin stated that proposed Resolutions will be presented requesting the General Assembly to amend the City Charter. At this time, there are two (2) issues for the committee’s consideration, as follows:
Article IV - Financial Affairs, Section 50 - Debt Limit
Mrs. Mitchell, Controller/Treasurer, advised members that an amendment to Article IV - Financial Affairs, Section 50 - Debt Limit of the City Charter is to eliminate the requirement for a referendum based on a set dollar amount but rather a percentage of assessed taxable value. She explained that the amendment would also eliminate the need for future requests to amend the Charter due to inflationary or deflationary changes in the taxable assessed values of real estate. The amount available for debt issuance would always correlate to the assessed taxable value. However, she indicated that the amendment would continue to provide a referendum requirement when the debt issuance would exceed one-fourth (1/4) of one percent (1%) of the taxable assessed value of real property.
Staff recommended approval of the amendment to the City of Dover Charter - Section 50, Debt Limit. In order to amend the City Charter, a Resolution must be adopted requesting the General Assembly to amend the City Charter. The proposed amendment would remove the $3M limit on borrowing without a referendum, while maintaining a threshold of 1/4 of one percent (.25) of taxable assessed value of real property of aggregate principal amount.
Mr. Salters moved to recommend approval of staff’s recommendation, seconded by Mr. Shevock.
Referring to the proposed legislation, Mr. Shevock noted that line 47 indicates “one percent” and that line 74 indicates “five percent”. Responding, Mrs. Mitchell indicated that both lines should reflect “one percent”. City Clerk’s Office Note: The percentage stated in line 47 (one percent) refers to the total aggregate principal amount of bonds outstanding to finance public storm sewers, streets and appurtenances. The mayor and council is authorized and empowered to borrow on the faith and credit of the City of Dover sums of money for such purposes as may be deemed necessary and proper by the mayor and council. The percentage stated in line 74 (five percent) refers to the aggregate of the amounts borrowed, as well as all other bonded indebtedness for which the full faith and credit of the City of Dover has been pledged (total of debt) and should remain at five percent. On July 12, 2007, the aggregate amount of debt was reduced from 25% to 5% of the total assessed value of real property.
Responding to Mr. McGlumphy, Mrs. Mitchell stated that the borrowing limit, which is currently set at $3M, would increase to over $7M based on today’s assessed values. Mr. McGlumphy relayed concern that the City would be potentially limiting the public’s voice, although he understands the difficulty with the referendum process.
Mr. Ruane explained the transparency involved with a bond issuance and reminded members of the public process and fiscal responsibility required with a bond issue.
On a call for the question by Mr. Salters, the motion recommending approval of staff’s recommendation to amend Section 50 - Debt Limit of the City of Dover Charter (Attachment #1) was carried with Mr. McGlumphy voting no.
Article IV - Financial Affairs, Section 47 - General Assessment; Levy on Utility Property and Section 49A - Assessment, Payment, and Collection of Taxes for New Construction
Ms. Russell, City Assessor, advised members that the proposed amendments to Article IV - Financial Affairs of the City Charter, Section 47 - General Assessment; Levy on Utility Property and Section 49A - Assessment, Payment, and Collection of Taxes for New Construction were based on recommendations of an audit of the City of Dover Assessor’s Office performed by Mr. Frederick Chmura, CCMA, AAS and Mr. William Ford IAO, AAS of IAAO (International Association of Assessing Officers) dated June 2008.
Ms. Russell reviewed the proposed amendments and noted that the amendments would codify the recommendations of the IAAO audit and Council actions of 2007 by eliminating the requirement that the assessor be a freeholder; increase the time for appeal from fourteen (14) days to thirty (30) days; change the title and makeup of the appeals committee; allow the assessor to value property once construction permits are issued rather than waiting for occupancy; and, eliminate supplemental billings for new construction valued at less than $25,000.
Referring to the Board of Assessment Appeals, Mr. Ruane noted that language had not been included to describe the membership requirements. He had contacted Ms. Russell earlier and she indicated assurance that once the Charter is amended, an ordinance will be developed to amend Section 102-181 - Tax Appeals Committee of the Dover Code, which will be amended to reflect the Board of Assessment Appeals and provide specifics for the Board.
Due to the recent economic situation, which has resulted in large tracts of land, multiple dwelling units, and residential, commercial, and business units being vacant, Mrs. Williams requested that staff contact the IAAO to determine if there have been any developments to address these situations.
Mr. Slavin read an e-mail submitted by Deputy City Solicitor Pepper into the record (Attachment #2).
Regarding the Board of Assessment Appeals, Mr. DePrima stated that there is sometimes difficulty in assuring a quorum when there are only three (3) members. He suggested that members consider providing for two (2) alternates to the membership to alleviate this issue.
Mr. Salters moved to recommend approval of staff’s recommendations to amend Section 47 and 49A of the City Charter (Attachment #3), seconded by Mr. Shevock and unanimously carried.
Mr. Salters moved for adjournment, seconded by Mr. Shevock and unanimously carried.
Meeting Adjourned at 6:34 P.M.
Respectfully submitted,
Timothy A. Slavin
Chairman
TAS/AC/TM/jg
S:ClerksOfficeAgendas&MinutesCommittee-Minutes20091-12-2009 LF&A.wpd
Attachments
Attachment #1 - Proposed Resolution Requesting the General Assembly to Amend Section 50 - Debt Limit of the City of Dover Charter
Attachment #2 - E-mail Submitted by Deputy City Solicitor Pepper Regarding amendments to Section 47 and 49A of the City of Dover Charter
Attachment #3 - Proposed Resolution Requesting the General Assembly to Amend Section 47 - General Assessment; Levy on Utility Property and Section 49A - Assessment, Payment, and Collection of Taxes for New Construction of the City of Dover Charter