SPECIAL MEETING
April 30, 1983
A Special Meeting of Council was held on April 30, 1983 at 10:00 a.m. to set a tax rate with Mayor Carroll presiding. Members present were Messrs. Richter, Tudor, Boaman, Hardcastle, Carey, Witt, Weyandt and Shevock.
Mayor Carroll declared the meeting open for discussion and the setting of a tax rate for the year 1983/84.
Mr. Witt referred to a financial analysis that he prepared and copied to Mayor and Council and moved that a tax rate of $1.21 per $100 of assessed value be set for fiscal year 1983/84. The motion was seconded by Mr. Carey.
Mr. Witt explained that his report is based on a tax rate of $1.21, taking into consideration tax discounts that will be taken by property owners, estimated quarterly billings, and penalties that the City will receive for non-payment. The report recommended that the Fire Chief’s car in the amount of $9,000 be considered a part of the budget; reducing the library planning appropriation from $10,000 to $8,000; delete new carpeting in City Hall in all non-public areas; and also delete resurfacing of Carol Street.
Per questions presented by Mr. Richter, Finance Director Karia pointed out specific areas of Mr. Witt’s calculations that did not agree with his estimates which reduced the net income of total assessables by $10,000.
Reviewing the circumstances that initiates the submission of the City Manager’s proposed budget, Mr. Richter advised that a greater part of the budget is represented by salaries for personnel that Council previously approved as a part of the City’s obligation in the budget. He reminded Council that micro-computers are an important segment of efficiently conducting business and responding to public need. In addition, the City’s vehicle and equipment inventory is deteriorating. He felt that the present services must be maintained. The Legislative and Finance Committee and members of Council have closely scrutinized the projected revenues and based a proposed budget for fiscal year 1983/84 on a reasonable tax rate.
Mr. Richter stated that postponing certain improvements will only result in a delay and those improvements will appear as an item in a future budget proposal. He recommended a compromise among members of Council that would result in a reasonable tax rate.
Mr. Weyandt voiced his support for reassessment and in his opinion the reassessment of properties plus the new construction that seems to be on the increase in the City of Dover will result in a substantial tax income. He voiced his objections to increasing taxes due to his concern for fixed income senior citizens.
Mr. Shevock stated that a reassessment could not be completed in a time span that would effect City revenues for the coming fiscal year.
Mayor Carroll reminded members of Council that the record of previous Councils indicates that certain needed improvements were cut from budgets, resulting in a tax increase of 20¢ per $100 of assessed value in one year. Cutting of needed improvements should not continue for that reason.
By a roll call vote of five (5) yes, three (3) no (Mr. Richter, Mr. Boaman and Mr. Shevock) Council approved Mr. Witt’s motion, setting a tax rate at $1.21 per $100 of assessed value.
In accordance with Section 10 of the City of Dover Charter, Mayor Carroll announced his veto of the motion and the Clerk circulated written notice to each Council member.
Mr. Tudor requested an opinion from City Solicitor Rodriguez on what would happen if Council did not set a tax rate during the month of April or at the present meeting, and would the present tax rate be utilized as a basis for taxation during the year 1983/84.
Mr. Rodriguez stated that the Charter requires Council to set a tax rate during the month of April of each year. At this point in the present meeting, Council has not set a tax rate since Mayor Carroll has exercised his right to veto, voiding Council’s action to set a tax rate at $1.21. Council’s failure to act in accordance with the Charter could lead to legal action by the taxpayers.
Mayor Carroll called for the pleasure of Council.
By request of Mr. Richter, Mayor Carroll called for a recess.
Following the recess, Mayor Carroll reconvened Council.
Mr. Tudor moved that the tax rate for fiscal year 1983/84 be set at $1.205. He also recommended that the Fire Chief’s car be removed as a budget item. He felt that reducing the tax rate by one-half cent and removal fo the Fire Chief’s vehicle as a budget item would conform with Mr. Witt’s proposal which was based on $1.21 tax rate. Mr. Weyandt seconded the motion for the purpose of discussion.
Mr. Tudor was advised by Mr. Boaman and Mr. Richter that Mr. Witt’s summary of figures, based on a tax rate of $1.21, were reduced by $10,000 in regards to estimated revenues. In addition, Mr. Witt’s calculations anticipated a $60,000 to $70,000 surplus for the current fiscal year and said surplus does not exist in accordance with Finance Director Karia due to a necessary adjustment in bookkeeping procedures.
Mr. Witt agreed that a tax rate of $1,2175 would compare favorably with his calculations as submitted in his report.
Mr. Tudor withdrew his motion to set a tax rate at $1.205, as did Mr. Weyandt his second.
Taking into consideration Mr. Karia’s adjustments to Mr. Witt’s report, Mr. Witt moved that the tax rate for fiscal year 1983/84 be set at $1.2175 per $100 of assessed value. The motion was seconded by Mr. Richter.
Mr. Boaman moved to amend the motion for the amount necessary to resurface Carol Street ($21,000) which would increase the tax rate to $1.23 per $100 of assessed value. The motion was seconded by Mr. Shevock.
Mr. Witt called for the question.
By a roll call vote of five (5) no, three (3) yes (Mr. Richter, Mr. Boaman and Mr. Shevock) Mr. Boaman’s amendment was defeated.
Mr. Witt called for the question on the original motion to set a tax rate of $1.2175 per $100 of assessed value.
By unanimous roll call vote, the motion was carried.
Meeting Adjourned at 11:25 A.M.
WILLIAM H. WILLIS CITY CLERK
All orders, ordinances and resolutions adopted by City Council during their meeting of April 30, 1983, are hereby approved.
CRAWFORD J. CARROLL
MAYOR
May 5, 1983
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