LEGISLATIVE, FINANCE AND ADMINISTRATION COMMITTEE
The Legislative, Finance, and Administration Committee meeting was held on August 13, 2007, at 6:00 p.m. with Chairman Slavin presiding. Members present were Mr. Salters, Mr. McGlumphy, and Mr. Shevock. Mrs. Jones was absent. Members of Council present were Mr. Carey, Mr. McGiffin, Mr. Hogan, and Mr. Ruane.
AGENDA ADDITIONS/DELETIONS
Mr. Salters moved for approval of the agenda, seconded by Mr. McGlumphy and unanimously carried.
Proposed Ordinance - Chapter 102 - Taxation, Article I - In General, Section 102-4 - Omitted Real Property Assessments
One of the issues identified in the Strategic Evaluation Plan for the Assessment Office was the lack of any standards or regulations for omitted assessments. These are property assessments that, for a variety of reasons, had dropped off the tax role and were not being assessed or billed. Omitted assessments can be caused by computer error, clerical errors, conversion of software or records, missing building permits, or failure to issue temporary and final certificates. A few cases were recently found by the Assessor. The Assessor researched omitted assessment regulations from other communities and developed, with the City Manager, a draft ordinance. It is important to note that in the cases found by the Assessor the properties were billed taxes for past years, and the tax bills were paid. However, having regulation in the code would validate the city's effort when trying to collect on omitted assessments.
Staff recommended adoption of the proposed ordinance amending Chapter 102 - Taxation, Article I - In General, by adding a new Section 102-4 - Omitted Real Property Assessments.
Mr. Ruane, referring to the reasonable penalty in paragraph (c) of the proposed amendment, noted that Section 49A of the City of Dover Charter specifies that “said taxes shall be paid within 30 days of billing and those taxes not paid shall accrue a penalty in the amount of 1 and ½% per month.” Mr. DePrima, City Manager, stated that he would consult with the City Solicitor regarding inclusion of the penalty percentage in the ordinance.
Responding to Mr. Salters, Mr. DePrima advised members that if ten (10) year old omissions were discovered, staff would develop a repayment plan for the property owner. He noted that State law limits recovery for omissions to ten (10) years. Mr. Hogan suggested that paragraph (c) be revised to include a provision for mitigating circumstances.
Mr. Salters moved to recommend adoption of the proposed ordinance amending Chapter 102 - Taxation, Article I - In General, by adding a new Section 102-4 - Omitted Real Property Assessments, as amended (Attachment #1). The motion was seconded by Mr. Shevock and unanimously carried.
Discussion - Senior Tax Exemption
During their Regular Meeting of April 4, 2007, members of the Services to Seniors Committee considered a proposal by Councilman McGiffin and Mr. Capuano, City Tax Assessor, to allow a $6,000 income deduction for medical and drug expenses for senior citizens. The committee recommended that the tax exemption level be raised from $15,000 to $18,000 for individuals and from $21,000 to $26,000 for married couples to match the County rate and that the issue be reviewed within the year for a permanent recommendation.
Councilman McGiffin advised members that the City of Dover currently provides a property tax exemption for senior citizens on fixed social security incomes; however, senior citizens on fixed military, federal, or other incomes do not qualify, regardless of their financial position. Additionally, there is not an allowance for citizens with unusually high medical and prescription drug expenses.
Councilman McGiffin suggested that an ad-hoc committee be formed, comprised of one (1) appointee nominated by each Councilperson, to review the fairness and appropriateness of the current tax exemption ordinance, the standards, and the process to determine if it is responsive to the needs of the citizens of Dover.
Mr. Salters moved to recommend that an ad-hoc committee be formed, comprised of one (1) appointee nominated by each Councilperson, to review the fairness and appropriateness of the current tax exemption ordinance, the standards, and the process to determine if it is responsive to the needs of the citizens of Dover to provide a recommendation to the Legislative, Finance, and Administration Committee. The motion was seconded by Mr. Carey and unanimously carried.
Finance Department Procedure - Cell Phone Use
Mrs. Mitchell, Finance Director/Treasurer reviewed Finance Department Procedure # F320 - Cellular Phone Assignment and Usage (Attachment #2). She noted that the procedure was developed to strengthen internal controls and to resolve issues arising from employee cell phone use.
Responding to Mr. Ruane, Mrs. Mitchell stated that Section VI - Non-Compliance, addresses misuse of the phones. She noted that it could be revised to include reimbursement of charges in cases of abuse. Mr. DePrima noted that abuse is also addressed in the Employee Handbook.
Mr. Shevock moved for adjournment, seconded by Mr. Salters and unanimously carried.
Meeting Adjourned at 6:27 P.M.
Respectfully submitted,
Timothy A. Slavin
Chairman
TAS/tam
S:ClerksOfficeAgendas&MinutesCommittee-Minutes20078-13-2007 LF&A.wpd
Attachments
Attachment #1 - Proposed ordinance amendment - Chapter 102 - Taxation, Article I - In General, Section 102-4 - Omitted Real Property Assessments
Attachment #2 - Finance Department Procedure - #F320 - Cellular Phone Assignment and Usage (Attached to Original Minutes and File Copy)