Board of Selectmen Minutes
Town Office Building
January 13, 2017
Selectmen’s Conference Room
10:00 A.M.
First Selectman Mailhos called the meeting to order at 10:15 AM with Selectmen Kowalyshyn & Blessington in attendance as well as Revenue Collector, Lisa Madden and Resident Randy Belair. Business Manager Donna Latincsics arrived at 10:30 AM.
Potential Fee Revenue
First Selectman Mailhos stated that she added this item on the agenda to not only talk about the fees in the Tax office but also to come up with ideas of other fees that the town could potentially collect. She noted that since we are facing a revenue problem, she feels we need to look at the different revenue solutions, before eliminating programs or services or raising taxes.
Revenue Collector, Lisa Madden stated that she would like to reinstate the DMV “put-on” fee that administers delinquent motor vehicles. The town has used the system for several years, with the exception of this year as the DMV discontinued it. It is a fee that covers the cost associated with the tax collector’s office who manually releases them from a list (on the DMV) so they can renew their registration. She noted that this will only pertain to delinquent tax-payers; however she noted that currently we have about 1,400 vehicles that are on that list.
The state stopped collecting the $2 per vehicle fee when the tax law went into effect, however she noted that the tax office still has to manually process paperwork and that will help offset the cost of their time. Ms. Madden stated that all other surrounding towns have continued collecting the fees; some towns collect as high as $5 per vehicle. To reinstate is as simple as adding into the Revenue Collection policy. She would like it to go back into effect in August.
Ms. Madden added that the town sent out 6,300 motor vehicle bills and 1,500 of them are now delinquent.
Selectman Kowalyshyn said that she thinks we should not only reinstate the fee, but we should increase it to $5 if that is what our neighboring towns are doing. Selectman Blessington said he is thinking of this as a tax increase and is not in favor of it. First Selectman Mailhos argued that it isn’t a tax increase; but rather a processing fee to accommodate the extra work the tax collector has to incur to allow a DMV release. Selectman Kowalyshyn added that it is more like a penalty; it will not affect those who pay their taxes on time.
In addition to the delinquent tax fee, Ms. Madden stated that the Town also has an option to file UCC Liens with the State (Uniform Commerecial Code Lein), on small businesses who are not up to date on their personal property tax. For example, a small business is required to pay taxes on machinery or equipment they have on file. Those who are delinquent would have a UCC Lien filed against them within the Tax Office. The UCC Lien is $20.00 per filing and the town will collect in addition to the taxes once paid off. Ms. Madden added that it is time consuming for the Tax Office to process, but in the event that business files bankruptcy, it protects the town. She then noted that Willington currently only has 9 businesses that fall under that category at this time so we are not talking a lot of money.
First Selectman Mailhos said we can add the discussion to a regular meeting agenda to discuss further. She added that we should brainstorm ideas today and see how the budget goes as we move along.
In addition to the Revenue fees, First Selectman Mailhos stated that our building fees have not been discussed in about 7 years. She then clarified that our Building Official has not approached her with the idea of raising the fees; however it is a source of revenue that could be looked at. The price per thousand is $10; and .26 cents goes back to the state. First Selectman Mailhos also noted that seven years ago when we opened discussions, our neighboring towns were raising their fees to $15 per thousand and the Selectmen at the time were not in favor of following suit. She then mentioned that we also know that a lot of basements are going to be fixed and we will not have any fees incur from them.
The Transfer Station is another avenue we have not looked at in quite some time. Selectman Kowalyshyn then stated that while people don’t seem to want to consider this, we have to look at all of our options; otherwise we could see a large increase in our mil rate or we may have to look into cutting services.
Resident Randy Belair asked if we know the percentage of residents who use the Transfer Station. First Selectman Mailhos stated that she believes that 25 – 30% pay for the pick up option; so it is presumed that the remainder uses the Transfer Station (and the residents still can use a bulk permit for large items). Lisa Madden added that most homeowners (who live in Willington) receive bulk cards with their tax bills. The rest (which are presumed to be rentals) are usually given to the renters (if known) or held at the Transfer Station to be given with proof of residence.
Selectman Blessington stated one of the things he is proud of Willington is for the free Transfer Station (the fees are included in the taxes) and he believes the residents like that as well. First Selectman Mailhos stated that the operating cost to run the Transfer Station is $219,000; which includes the salaries so it is not “free”. Selectman Blessington warned that money would be spent by the citizens anyway and his point is it is serving the citizens rather than trying to generate revenue for the town. Selectman Kowalyshyn clarified that we are just trying to help offset the cost, otherwise we will have no other choice but to raise the mil rate or make cuts. Selectman Blessington said he understands the worry for increasing the mil rate, but why can’t we find anything to cut?
Lisa Madden then clarified that we already know that we are going to lose $40,000 in next year’s revenue (because of decreased assessments due to crumbling foundations), so we need to come up with ways to recoup the costs. She then asked Selectman Blessington how he would like to make up the difference. Selectman Blessington said we may have to raise taxes and noted “if the transfer station operation ain’t broke, don’t fix it.”
Resident Randy Belair stated that we have a challenge ahead of us that is going to plague us for years and we are not going to be able to sustain the town. He added that town officials have done a good job pinching pennies over the years; as Willington has one of the lowest mil rates around. He added that people who attended the POCD meeting in the fall expressed that the Transfer Station was one of the good things we have going here in town, but then he stated that the cost is almost a ¼ of a million dollars a year – there has to be a way to help offset it without burdening the taxpayers.
Discussion was held on the best procedure if we were to propose a fee to use the Transfer Station. The Board then discussed what fee would be the most acceptable to residents. Selectman Kowalyshyn added that we need to present it to the Townspeople; and inform them that we have to do this to help offset the cost. She then stated that we will also seek input from our residents and encourage them to attend meetings and voice their opinions. She noted that our goal is to keep what we have and ultimatley it’s our job is to make sure the town is running smoothly and that we are listening to the people. She is not in favor of spending more money; but she is also not in favor of cutting anything just because we are losing revenue. First Selectman Mailhos agreed noting that we need to preserve the good things we have going on here – and the Transfer Station is one of them.
First Selectman Mailhos stated that we should continue discussions – hold a public hearing and this might be the year the question goes on our annual Referendum.
Randy Belair then suggested having the Selectmen try to market our town to counteract the negative things that are happening. He then referenced the fight against the gun range when the residents pulled together in unison. He then added that the residents have once again joined forces in the crumbling foundation fight; noting the leadership is out of Willington. That’s the kind of town he wants to live in.
Discussion was held on the fear of having unoccupied homes (where people will walk away from their homes because they can’t fix them; and they can no longer live there) and the town will no longer be able to collect taxes on them.~ First Selectman Mailhos stated that she thinks about that a lot.~~ Lisa Madden stated that eventually all of the homes are going to need to be fixed or rebuilt.~ She noted in some cases, it may be more cost effective to rebuild a house rather than fix the foundation underneath it; either way, it is going to take time to get the contractors on board and or get funding. Selectman Kowalyshyn stated that she had an idea a few months ago; suggesting having the town take over a home in peril and fix it up and resell it at cost. She stated that would show the townspeople that we are willing to invest in it. ~ The newer neighborhoods are affected; most of which are larger-scale homes. ~ Selectman Kowalayshyn warned although she thought it was a good idea, we don't have anyone to oversee the work and we would have other obstacles that we do not have personnel for. ~ Randy Belair suggested rather than sell the house, how about using it as a "rental" for residents who need a place while their home is being fixed as they will need to stay somewhere. First Selectman Mailhos noted of a home in Union that is open for residents who are misplaced during a basement fix that is owned by one of the contractors. ~ Lisa Madden stated that we could potentially have 300 houses needing to be fixed. ~ Randy Belair clarified that there are only a few contractors who can do the work right now and the work itself is time consuming; they can only do a few per year. Selectman Kowalyshyn added that in some cases, (if one wall is being fixed at a time) the residents will be able to live in their homes during construction.~
First Selectman Mailhos stated that we would also need to take the elderly, handicapped, people with children and even with pets into consideration as well. ~Lisa Madden cautioned that you wouldn't want the town to become landlords. ~Selectman Blessington suggested coming up with an incentive to make contractors come to work here. ~Lisa Madden suggested perhaps offering abatement on property that is purchased as it is being repaired or “flipped”. If the town were to abate the taxes for a year while fixing it up; or even better abate them for several years on properties that could potentially be used as rentals for those who cannot live in their homes while being fixed. ~ She noted that it would save the town money in the long run. ~First Selectman Mailhos added that we (the town might be able to help negotiate the cost of the home); helping contractors in the purchase process. Selectman Blessington would rather see the contractor do the financing, etc and the town help them. ~ Mr. Belair stated that his contractor, for example had written out 85 quotes this past year, and has only signed on 4 jobs, because no one can come up with the money to do the work; but on the other hand, the people need the quote to file insurance claims. ~ Ms Madden stated that towns give tax abatements~to prospective businesses all the time.~
First Selectman Mailhos stated that she will contact the Town Attorney to see if what was discussed is even legally possible to do.~~
Budget Workshop
Robin Campbell had asked for COST dues to be added to the Selectmen's Budget ($875); because COST has become active with crumbling foundation meetings/issues; however First Selectman Mailhos noted that she would still be able to attend the meetings, and pay as we go. ~ First Selectman Mailhos added that the Board of Finance most likely will not support us belonging to both CCM and COST. ~ Selectman Kowalyshyn was in agreement, stating that we should not be paying to be members~for both.~
Donna presented the draft #3 to the Selectmen. ~The bottom line increase is at 5% due to Public Work's paving plan, which is an increase of $252,000. ~~
First Selectman Mailhos also added that no salary increases have been added to the budget yet. ~ She added that we are also hopeful that we will be able to negotiate the insurance costs this year as well during negotiations with the union.
First Selectman Mailhos added that she will talk to Derek to bring the paving project down. ~Selectman Kowalyshyn stated that it would probably benefit the town to just do it. First Selectman Mailhos explained that the town has~a rotation where the roads were on a 7 year plan, but because the budgets kept getting cut, the roads are now more like a 10 year rotation. ~ ~The Selectmen will ask him to cut the asphalt project by a mile and a half.
Donna asked if the Town Clerk position will receive benefits once a new person takes over. ~First Selectman Mailhos stated that the Town Clerk position is entitled to benefits as was discussed and determined a few months ago.
Firsts Selectman Mailhos noted that the snow budget is not doing so well right now as the crews have been very active last month (and were out on holidays and weekends).. ~She gave an example of last year; the crew went out a total of 16 times the entire season. ~This year so far, the crews went out 16 times in December alone.~ She noted that smaller storms are more expensive than a blizzard because the crews are constantly applying product on the roads during a smaller storm and in a blizzard, they are mostly clearing, and then will apply product in the middle and at the end of the storm.
Randy Belair noted that the Board of Education will be seeing a $32,000 cut from the state, however because they have a surplus, they are going to be able to absorb it. ~In addition, Dr. Jacoby is looking into funding an architectural study on the facilities- each of them separately; consolidating the schools and lastly looking into the option in building a new facility. ~
Selectman Kowalyshyn moved to adjourn the meeting at 12:00 PM
Selectman Blessington seconded the motion.
Vote: ~3 Yes (Mailhos, Kowalyshyn & Blessington) 0 No.
Respectfully submitted,
Robin Campbell
Administrative Assistant