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REPRESENTATIVE TOWN MEETING
TOWN OF GREENWICH
EXPLANATORY COMMENTS FOR
DECEMBER 2009 MEETING
DEPARTMENT: Inland Wetlands Agency
CONTACT: Michael Chambers, Director 622-7736
REFERRED TO: Land Use, Legislative & Rules Committees
VOTES:
RESOLVED that the following ordinance establishing a municipal fine for Inland Wetlands violations which was adopted by the Representative Town Meeting on December 10, 2007, and which will automatically be repealed on December 31, 2009 unless reenacted, be readopted by the Representative Town Meeting.
EXPLANATORY COMMENTS
The “Ordinance Establishing a Municipal Fine for Violation of Wetland Regulations” was adopted by the RTM in December 2007. The Ordinance includes a sunset clause that will automatically terminate the Ordinance on December 31, 2009 unless it is reenacted by the RTM. Over the past two years, the Inland Wetlands and Watercourses Agency and the Agency’s Staff have applied the Ordinance and found it to be a useful tool to enforce the IWWA Regulations.
The ability to fine anyone who violates the IWWA Regulations has helped to deter violations. Notably, contractors are aware that they may face a direct penalty if they conduct a regulated activity without a permit and now conduct their activities with a better respect of the Regulations. In addition, the procedures developed to implement the Ordinance in the field have allowed Staff to better focus the attention of wetlands violators on the immediate steps they must take to reduce the extent and duration of impacts to wetlands and watercourses when violations do occur.
From January 2008 through October 2009, a total of 43 Notices of Violation were issued to property owners and other individuals who committed violations of the IWWA Regulations (32 in 2008 and 11 in 2009). In each of these cases, the responsible parties took the steps needed to begin to correct the violation as instructed by Staff in the Notice of Violation within the timeframe specified in the Ordinance and, therefore, no citations have been issued.
The “Ordinance Establishing a Municipal Fine for Violation of Wetland Regulations” helps the IWWA to protect and preserve the wetlands and watercourses in Greenwich, and the IWWA therefore requests that the RTM reenact the Ordinance as proposed. Note that the proposed Ordinance is the same as that adopted by the RTM in December 2007, except for the deletion of the sunset clause.
ATTACHMENTS
Ordinance establishing a municipal fine for violation of wetland regulations
Pursuant to Connecticut General Statutes, Sections 22a-42g and 7-152C
Adopted by the Representative Town Meeting,
Town of Greenwich, Connecticut
December 10, 2007
§ _____ Purpose
This article establishes a means by which the Town of Greenwich may more effectively enforce the Inland Wetlands and Watercourses Regulations of the Town of Greenwich, with the implementation of fines for violations of the regulations. This article shall not be construed to limit or alter the authority, duty and responsibility of the Greenwich Inland Wetlands and Watercourses Agency as granted and established under Connecticut’s Inland Wetlands and Watercourses Act, Sections 22a-36 through 22a-45 of the Connecticut General Statutes, Chapter 2, Article 6, Sections 2-19 through 2-23 of the Greenwich Municipal Code and any other federal, state, or local legislation that may apply.
§ _____ Authority
This article is adopted pursuant to Connecticut General Statutes, Section 22a-42g. In accordance with this statute, the Inland Wetlands and Watercourses Agency, acting on behalf of the Town of Greenwich, is hereby authorized to promulgate regulations in accordance with the provisions of this article setting forth procedures for the issuance of citations and for the setting of fines for violations of the Agency’s regulations.
§ _____ Definitions
The following words, terms and phrases used in this article shall have the following meanings:
“Agency” – The Town of Greenwich Inland Wetlands and Watercourses Agency, acting as the inland wetlands agency under Section 22a-42 of the Connecticut General Statutes.
“Director” – The employee of the Town of Greenwich responsible for the supervision of the Agency staff.
“Director’s Designated Agent” – With respect to any duty to be performed by the Director, an employee of the Agency to whom the Director has expressly delegated the performance of such duty.
“Continuing Violation” – Ongoing work, which has not ceased to the satisfaction of the Director within two calendar days of receipt of a Notice of Violation.
“Person” – Any person, firm, partnership, association, corporation, limited liability company, company, organization or legal entity of any kind, including municipal corporations, governmental agencies or subdivisions thereof.
“Notice of Violation” – A written notice issued by the Director to a person committing a Violation, stating the nature of the Violation, the jurisdiction of the Agency, and prescribing the necessary immediate and long-term actions and steps to correct the Violation including, without limitation, halting work in wetlands or watercourses.
“Regulations” – The Inland Wetlands and Watercourses Regulations of the Town of Greenwich as may be amended from time to time.
“Violation” – Any activity that requires the prior permit or approval of the Agency but that is conducted without prior permit or approval of the Agency.
§ _____ Issuance of Citations
A. The First Selectman of the Town of Greenwich hereby authorizes the Director, with the prior consent of the Chair of the Agency, to issue a citation to any person who has received a Notice of Violation and has failed to comply with the necessary immediate actions and steps to
correct the Violation that are specified in the Notice of Violation within one (1) calendar day after receipt of the Notice of Violation or who commits a Continuing Violation. Any such citation may be issued either by hand delivery or by certified mail to the person named in such citation. In such instances, each citation will apply jointly and severally to the owner of the property in question and his/her agents, contractors and subcontractors. An original or certified copy of the initial citation issued by the issuing official shall be filed and retained by the Town of Greenwich and shall be deemed to be a business record within the scope of Section 52-180 of the Connecticut General Statutes and evidence of the
facts contained therein.
B. The citation shall inform such person:
(1) Of the allegations against him or her for which the citation is issued pursuant to this Article and the amount of the fines and costs due;
(2) That the person has a period of thirty (30) days from the date of the citation (i.e., the date of hand delivery or the date the citation was mailed) to make an uncontested payment of the fines;
(3) That payments shall be submitted to the Agency by check made payable to the Town of Greenwich;
(4) The citation notice shall also inform the person cited that he/she may contest his liability before a citation hearing officer by delivering in person or by mail written notice within twenty (20) days of the date thereof. The notice shall also inform the person cited that if he/she does not demand such a hearing, he/she shall be deemed to have waived contesting liability, such fines and costs shall be assessed against him/her, an assessment and judgment shall be entered against him/her and that such
judgment may issue without further notice.
C. Each Violation shall be a separate and distinct offense. In the case of a Continuing Violation, at the discretion of the Director and with the prior consent of the Chair of the Agency, daily citations may be issued commencing~two calendar days from receipt by the person of~the Notice of Violation.
D. This article shall only apply to Violations that occur after this article’s effective date.
§ _____ Establishment of Fine
A. No fine shall exceed the maximum permitted under state law. Fines for Violations will be determined by the Agency at a public meeting and published in the Regulations. Fines imposed will not exceed the maximum permitted by Connecticut General Statute, Section 22a-42g at the time the Violation occurred.
B. No such fine may be levied against the State of Connecticut or any employee of the state acting within the scope of her/his employment.
C. Any fine collected by the Town of Greenwich pursuant to this article shall be deposited into the Town of Greenwich’s general fund account.
§ _____ Hearing procedure for citations
A. In accordance with Section 7-152c of the Connecticut General Statutes, as the same may be amended from time to time, there is hereby established a wetland citation hearing procedure.
B. The First Selectman shall appoint one or more citation hearing officers, other than police officers or employees or persons who issue citations, members or alternates of the Agency, employees, past employees, members or alternates of the agency, to conduct the hearings authorized by this article.
C. Admission of liability by payment of fine.
(1) If any person who is sent notice pursuant to Subsections A and B of Section _____ wishes not to contest liability for any alleged violation, he/she may, without requesting a hearing, pay the full amount of the fines and costs admitted to in person or by mail to the Greenwich Inland Wetlands and Watercourses Agency. Checks shall be made payable to the Town of Greenwich.
(2) Such payment shall be inadmissible in any proceeding, civil or criminal, to establish the conduct of such person or other person making the payment.
D. Any person may demand a hearing by delivering a written request for the same to the Director within twenty (20) days of the date of the first notice provided for in Subsections A and B of Section _____. Any person who does not deliver such written request within twenty (20) days shall be deemed to have waived contesting liability, and the Director shall certify such person’s failure to respond to the hearing officer. The hearing officer shall thereupon enter and assess the fines and costs provided for by this article and shall follow the procedures set forth in Section _____.
E. Any person who requests a hearing shall be given written notice by certified mail of the date, time and place for the hearing. Such hearing shall be held not less than fifteen (15) days nor more than thirty (30) days from the date of the mailing of notice, provided that the hearing officer shall grant upon good cause shown a postponement or continuance for any reasonable request by any interested party. Once a hearing has been requested, no additional citations shall be issued.
F. The presence of the issuing official shall be required at the hearing if the person issued the citation so requests. A person wishing to contest his/her liability shall appear at the hearing in person or by representative and may present evidence in his/her behalf.
G. If the person that demanded a hearing fails to appear, the hearing officer may enter an assessment by default against him/her upon finding of proper notice and liability under this article.
H. A designated municipal official, other than the hearing officer, may present evidence on behalf of the municipality.
I. The hearing officer may accept from the designated municipal official copies of police reports, investigatory and citation reports and other official documents by mail and may determine thereby that the appearance of such person is not necessary.
J. The hearing officer shall conduct the hearing in the order and form, and with such methods of proof, as he/she deems fair and appropriate. The rules regarding the admissibility of evidence shall not be strictly applied, but all testimony shall be given under oath or affirmation. The hearing office shall take into account the nature of the violation and the history of the site including previous violations.
K. The hearing officer shall announce his/her decision at the end of the hearing.
(1) If the hearing officer determines that the person is not liable, he/she shall dismiss the matter and enter his/her determination, in writing, accordingly.
(2) If the hearing officer determines that the person is liable for the violation, he/she shall then enter and assess the fines and costs against such person as provided by this article.
§ _____ Failure to Pay Fine
If the fines and costs assessed by the hearing officer are not paid on the date of entry, the hearing officer shall send by first class mail a notice of such assessment to the person found liable and shall file, not less than thirty (30) days nor more than twelve (12) months after such mailing, a certified copy of the notice of assessment with the Clerk of the Superior Court facility designated by the Chief Court Administrator together with the applicable entry fee. The certified copy of the notice of assessment shall constitute a record of assessment. Within such twelve (12) month period, assessments against the same person may be accrued and filed as one record of assessment. The Clerk of the Superior Court shall
enter a judgment, in the amount of the assessment plus court costs against such person in favor of the Town of Greenwich. Notwithstanding any other provisions of the Connecticut General Statutes, the hearing officer’s assessment, when so entered as a judgment, shall have the effect of a civil money judgment, and a levy of execution on such judgment may be issued without further notice to such person.
§ _____ Appeals
A person against whom an assessment has been entered pursuant to this article is entitled to judicial review by way of appeal. An appeal shall be instituted within thirty (30) days of the mailing of notice of such assessment by filing a petition to reopen assessment, together with an entry fee in an amount equal to the entry fee for a small claims case pursuant to Section 52-259 of the Connecticut General Statutes, in the Superior Court, which shall then entitle such person to a hearing in accordance with the rules of the judges of the Superior Court.
§ _____ Public Notification
Notice of payment of a fine pursuant to this article shall be published by the Director at least once in a newspaper having a general circulation in the Town of Greenwich.
§ _____ Effective date
This ordinance shall become effective fifteen (15) days after notice of adoption of such ordinance is published in the form of a legal advertisement in a newspaper having a substantial circulation in the Town of Greenwich.
§ _____ Sunset Clause
This ordinance will be automatically repealed and cease to have effect on December 31, 2009, unless it is reenacted by the Representative Town Meeting.
DEPARTMENT: Department of Parking Services
REFERRED TO: Finance, Public Works, Town Services Committees
VOTES:
RESOLVED, that the amount of $18,000.00 additional appropriation for lighting upgrade be approve.
EXPLANATORY COMMENTS
Due to the rash of vehicle vandalisms and car thefts in the Greenwich Plaza Garage, an immediate deterrent for the vehicle larcenies would be the upgrade and installation of additional lighting in the darkest section of the garage. A balance of $24,537 remain in the 59820-29093 budgeted programmed for the restoration of the Town Hall Garage, which have been completed. We requested that the Finance Department close out this account and a parking fund balance be appropriated to finance the project at the Greenwich Plaza garage.
ATTACHMENTS
DEPARTMENT: First Selectman
REFERRED TO: Finance, Health & Human Services, Legislative & Rules Committees
VOTES: Board or commission name vote (y/n/a)
PROPOSED RTM RESOLUTION AMENDING GREENWICH MUNICIPAL CODE ARTICLE 12-6.1. PROPERTY TAX RELIEF FOR SENIORS
NOW THEREFORE, BE IT HEREBY ORDAINED AND ENACTED BY THE REPRESENTATIVE TOWN MEETING THAT:
The ordinance entitled Article 12-6.1. PROPERTY TAX RELIEF FOR SENIORS is hereby amended as attached:
Sec. 12-6.1. Property tax relief for seniors.
1. Statutory authority; age qualification. Pursuant to General Statutes § 12-129n property tax relief shall be provided to any resident of the town with respect to real property occupied by such resident as his or her principal residence for which the resident is liable for taxes as owner or as tenant for life or years under General Statutes § 12-48, who meets the qualifying total annual income herein and (1) who is sixty-five (65) years of age or over, (2) whose spouse, living with the resident is sixty-five (65) years of age or over, or (3) who is sixty (60) years of age or over and the surviving spouse of a taxpayer receiving relief in the town under this section at the time of his or her death. The ages specified in this section shall have been
attained by December 31 preceding the application for tax relief under this ordinance.
2. Taxpayer qualification. Residents or spouses qualifying for tax relief under this section must be taxpayers of real property located in the town for one (1) year immediately preceding their receipt of tax benefits under this section and meet the requirements set forth in subsection 11 of this section with respect to the qualifying total annual income allowable for their federal income tax year preceding the year in which application is made for tax relief under this section.
3. Other relief. Prior to the granting of property tax relief, such person must first have applied for tax relief under any other statute for which he or she is eligible and shall certify to the assessor and tax collector the tax credits received thereunder. No property tax relief granted under this section, together with any property tax relief received by any such person under all applicable statutes shall exceed, in the aggregate seventy-five (75) percent of the total amount of the tax which would, except for those applicable statutes and this section, be laid against the person applying for tax relief hereunder.
4. Limit on abatement. The total credit and deferral abatement of property tax revenue which may be granted in each tax year by the town pursuant to the provisions of this section shall be set by the Board of Estimate and Taxation at the time it sets the mill rate for such tax year at an amount which is (a) not less than the lesser of (1) $570,000 or (2) the amount of the tax [credits] relief for approved applications and (b) not greater than an amount, equal to one–half of one () percent of the total real property tax levied in the town in the current tax year. Such tax relief granted to eligible persons for any fiscal year shall be decreased if necessary to keep the total amount of the town tax relief within such limit by
applying such decrease ratably to the [credit] relief for the eligible persons with the highest qualifying total annual income and relief determined under [S]subsections 6 and 11[.(a)] and then if no [credit] relief is left for persons with such income and relief, by applying the decrease ratably to the [credit] relief for the persons with the next highest income and relief and so on for the others, until the decrease that is required to stay within such limit is met.
5. Principal residence requirement. For purposes of this section the principal residence requirement in subsection 1 shall be met if the resident[s] seeking qualification shall have maintained residence in the property for which tax relief is being sought for at least one hundred eighty-three (183) days during the twelve (12) months immediately prior to the filing of an application hereunder and does not otherwise qualify as a resident of any other country, state, municipality or territory.
6. Qualifying total annual income. Qualifying total annual income for tax relief under subsection 11 of this section shall be reviewed and determined by the assessor on the basis of amounts listed in the computation of total income for federal income tax purposes furnished by the taxpayer for the year preceding the filing of an application for tax relief hereunder of the applying individual, if unmarried, or jointly, if married, regardless of whether or not separate federal income tax returns were filed by such person or his or her spouse and shall be adjusted in accordance with subsections (a) and (b) of this section.
(a) Included in income. Qualifying total annual income shall include income from the following sources, whether or not such sources were included in amounts listed for the computation of total income in a federal income tax return, and shall therefore be adjusted and determined by the assessor to the extent such amounts are not included as total income in a federal income tax return:
(1) Wages, bonuses, commissions, gratuities and fees, self-employment net income;
(2) Gross Social Security, Federal Supplemental Security Income, payment for jury duty (excluding travel allowance);
(3) Dividends, interest, and annuities;
(4) Taxable IRA distributions;
(5) Black Lung payments;
(6) Interest or proceeds resulting from gifts received;
(7) Lottery winnings;
(8) Net income from sale or rent of real or personal property, provided that, to the extent that there is no net income, qualifying total annual income shall not be decreased by sale and rental net income losses;
(9) Pensions, including veterans' and railroad retirement;
(10) Severance pay; Unemployment compensation;
(11) Worker's compensation;
(12) Alimony;
(13) Capital gains, provided that, to the extent there is no capital gain, qualifying total annual income shall not be decreased by capital losses;
(14) Partnership income, provided that, to the extent there is no net income, qualifying total annual income shall not be decreased by partnership net income losses;
(b) Excluded from income. Qualifying total annual income shall exclude income from the following sources, whether or not such sources were included in amounts listed for the computation of total income in a federal income tax return or under subsection (a) above and shall therefore be adjusted and determined by the assessor to the extent that such amounts are included in a federal income tax return or under subsection (a) above:
(1) Social Security payments specifically for a dependent person or minor child;
(2) Casualty loss reimbursements by insurance companies;
(3) Gifts, bequests or inheritances, except for any interest or other income produced by the gift, bequest or inheritance;
(4) Grants for disaster relief;
(5) Income derived through volunteer service under the Domestic Volunteer Service Act of 1973, as amended, including stipends earned under the Foster Grandparents' Program, Retired Senior Volunteer Program, Senior Companion Program, and Community Training under Department of Mental Retardation;
(6) Life insurance proceeds;
(7) For a married homeowner whose spouse is a resident of a health care or nursing home facility and who is receiving payment related to such spouse under Title XIX Medicaid, total income shall not include the spouse's Social Security income, provided that the following has been submitted to the Assessor on the facility's letterhead and signed by the administrator or other nursing home official:
(i) Proof that the spouse is in a health care or nursing home facility,
(ii) The name and address of the facility,
(iii) The period during the benefit year that the spouse was in the facility,
(iv) The period during the benefit year that the spouse was on Title XIX Medicaid;
(8) Food stamps; fuel assistance; child support payments and temporary family assistance program payments.
7. Delinquent taxes. No tax relief shall be given under this section to any person who has delinquent taxes to the town from real property, personal property or motor vehicles, including capital assessments or user charges owed to the town which have not been paid in full or brought current by June 1 preceding the fiscal year for which tax relief shall be granted. For purposes of this section, abated taxes shall not be considered delinquent.
8. Form of application. The form of application for property tax relief under this ordinance shall: (a) be made by affidavit on forms provided by the assessor and accompanied by documentation of all qualifying income, including a copy of the applicant's most recent federal tax return for the taxpayer's fiscal year immediately preceding the town's fiscal year for which tax relief is being requested and[,] (b) state the qualifying information set forth in the preceding sections of this ordinance, whether or not the applicant has previously applied or is currently applying for any other tax relief for the elderly or disabled under any state statute. For those persons not required by law to file a federal tax return, an affidavit from such persons shall
be required attesting to the fact that they are not required to file a tax return. In the case of an application for tax deferral as provided under this ordinance the assessor shall take from the applicant, who shall be an individual and not a trust, an agreement in writing, signed, witnessed and acknowledged as required for a conveyance of land, containing the street address and land records volume and page of the deed to the property to the applicant or other legal description, that states the obligation to repay the deferred taxes and expressly grants to the town a security lien therefor on such real estate which agreement shall be recorded in the land records with the lien filed by the tax collector in accordance with subsection 11(b) hereof.
9. Filing dates. An application for property tax relief under this ordinance, including any required affidavit and documentation, shall be filed by mail or delivered in person to the assessor’s office not earlier than February 1, nor later than May 15 to obtain property tax relief for the next fiscal year. For those persons who have sought and received by May 15 an extension of time to file a tax return, the application must nevertheless be filed by May 15 and a copy of the tax return must be received by the assessor's office by June 15 or the application will be denied. If the qualifying total annual income for the year following that contained in the application remains less than the limit of the category approved for a resident under subsection 11 then that resident shall not
be required to file an application in the next following year but shall only be required to file an application biennially and the assessor may rely on the approved application on file to continue the tax credit accordingly. Otherwise, based on changes for such following year in qualifying total annual income that exceed the limit of the category approved for a resident or for a claim that the resident be allowed a larger [credit] relief based on a lower income category under subsection 11, the resident shall notify the assessor of such change and, if still qualifying for property tax relief, shall file again annually, by the dates set forth in this subsection.
10. Assessment limit. The property tax relief available hereunder shall be available for one (1) residence only collectively for each applicant and spouse and shall not be available to any residence with an assessed value in excess of one hundred and fifty (150) percent of the highest median assessed value of residences sold during each of the prior assessment years, October 1 to September 30, since the inception of the last town-wide revaluation as calculated by the assessor.
11. Computation of credit or deferral. [(a)] The tax relief provided by this section shall be elected by the applicant, subject to subsection 3, as either a credit, as provided in the following subparagraph (a), or a deferral, as provided in the following subparagraph (b), but not both.
(a) Tax Credit.
(1) The computation of the amount of property tax credit hereunder[, subject to section 3,] for the fiscal year commencing July 1, 2009 shall be determined on the following graduated basis:
Qualifying Total Annual Income Property Tax Credit
Less than $24,000 $1,900
$24,000-$36,000 $1,300
$36,001-$50,000 $1,000
$50,001 - $60,000 $500
[(b)] (2) For fiscal years commencing July 1, 2010 and following, the amount of tax credit shall be adjusted by a percentage change from the prior year as follows:
[(1)] (i) In a fiscal year in which a tax assessment revaluation becomes effective, the percentage change shall be the product of the new mill rate times the new grand list divided by the product of the prior grand list times the prior mill rate, minus one.
Example:
Prior Grand List = $20 Billion
Prior Mill Rate = 12 mills
New Grand List = $40 Billion
New Mill Rate = 6.2 mills
Benefit Change = ((6.2 mills x $40 Billion)/(12 mills x $20 Billion))-1
= ($248 million /$240 million)-1
= .03333 or 3.333% increase
[(2)] (ii) In a fiscal year in which a tax assessment revaluation does not become effective the percentage change shall be the same as the percentage change in the mill rate from the prior year.
(b) Tax Deferral.
(1) The amount of tax deferral hereunder for the fiscal year commencing July 1, 2010 and thereafter that persons with a qualifying total annual income of sixty thousand dollars ($60,000) or less may apply for shall be three thousand dollars ($3,000).
(2) The amount of tax deferred shall be reimbursed to the town on the death of the taxpayer or transfer of the property as provided in subsections 12 and 13 hereunder and shall be subject to the following: (i) the tax deferred shall be subject to an interest charge equal to the nominal rate for the United States Treasury security ten (10) year constant maturity quoted on an investment basis in the Federal Reserve Statistical Release as of each July 1, or the first business day thereafter, plus 200 basis points (2%), (ii) the interest rate will change annually, shall become effective July 1 and remain in effect for the twelve (12) month period through and including June 30 and shall compound annually, (iii) interest shall accrue from the date of deferral to the date of payment and (iv) the
cumulative amount of deferred taxes plus interest may be repaid in whole at any time.
(3) Once the amount including interest that is cumulatively deferred for any property exceeds fifty (50%) percent of the assessed valuation of that property or the taxpayer’s prorated assessed valuation of that property as determined by the assessor under subsections 14 or 15 hereof the taxpayer for that property shall no longer qualify for a tax deferral.
(4) Upon the approval of an application for deferral the assessor shall forward notification of the approval together with the agreement specified in subsection 8 hereof to the tax collector who shall file in the land records the agreement together with a tax lien on the property which shall become effective and be continued in the same manner as with other tax liens for the cumulative amount of deferred taxes plus the interest specified herein.
(c) For fiscal years commencing July 1, [2010]2011 and following the qualifying total annual income shall be adjusted by the percentage increase in the Consumer Price Index affecting the town designated “CPI-W NY-NJ-CT-PA” rounded down to the nearest $500.
12. Death of taxpayer. Upon the death of any person entitled to tax relief pursuant to this section, the tax relief hereunder shall end the following June 30, unless his or her spouse is otherwise qualified hereunder. Any deferred tax plus interest shall be paid by the expiration of 270 days from the date of death and if not paid shall become delinquent from the expiration of such time limit in the same manner as for delinquent taxes.
13. [Conveyance] Transfer of property. If any person entitled to [a] tax [credit] relief hereunder [sells] transfers the property with respect to which the tax relief hereunder has been granted to someone other than a spouse otherwise qualified hereunder, the tax relief shall be suspended as of the date of [conveyance] transfer, the deferred tax plus interest shall thereupon become due and if not paid within thirty (30) days shall become a delinquent tax from the date of transfer. [and] T[t]he nonqualifying [purchaser] transferee of such property shall be liable for any such unpaid taxes and shall pay the town a prorated share of taxes that become [thereby] due and owing as provided by General
Statutes § 12-81a.
14. Proration of relief. The property tax relief provided for in this section may, in any case where title to real property is recorded in the name of the taxpayer or his or her spouse and any other person or persons, be prorated to reflect the fractional portion of such taxpayer or spouse or, if such property is a multiple family dwelling, such relief may be prorated to reflect the fractional portion of such property occupied by the taxpayer.
15. Cooperatives. Persons qualifying in accordance with age and income requirements of this ordinance shall be eligible if they are unit owners and occupiers of a cooperative. The amount of annual property tax relief in accordance with this section to any such person shall be determined in relation to an assumed amount of property tax liability applicable to the assessed value for the dwelling unit which such person owns and occupies as determined by the assessor which may be based on the number of cooperative shares attributable to the unit compared to the total number of shares in the cooperative. For purposes of this section the assessor shall determine the assumed amount of property tax liability applicable to the assessed value for the dwelling unit of each such
person who is otherwise eligible under this section, but such determination shall not constitute a tax bill for purposes of property taxation of such cooperative or any individual dwelling unit thereof. Annually not later than the first day of June, the assessor, upon the basis of an application for such relief, shall determine, with respect to the assessment list for the assessment year commencing October first immediately preceding, the portion of the assessed value of the entire cooperative, as included in such assessment list, attributable to the dwelling unit occupied by such person. The assumed property tax liability for purposes of determining the amount of such relief shall be the product of such assessed value and the mill rate in the town as determined for purposes of property tax imposed on said assessment list for the assessment year commencing October first immediately preceding. The amount of relief to which such person shall be entitled for such assessment year shall
be equivalent to the amount of tax reduction for which such person would qualify, considering such assumed property tax liability to be the actual property tax applicable to such person's dwelling unit and such person as liable for the payment of such tax.
16. Procedures. The tax collector and assessor shall prescribe with regard to their respective duties under this section, such forms and procedures as may be necessary to implement this section. The assessor, in addition, shall take such steps as are necessary to satisfactorily establish the facts as to the qualifying income of an applicant for benefits under this section by requesting and reviewing income tax forms filed therewith and any additional evidence of qualifying income, which the assessor may require. This documentation shall not be open to public inspection. The assessor may deny the application of a person who fails to provide information required by the assessor that is necessary to determine eligibility.
17. Effective date. This ordinance, as amended, shall be effective starting with applications accepted February 1, [2009] 2010 for tax relief for the fiscal year commencing July 1, [2009] 2010.
18. All provisions of this ordinance, as amended, shall cease to be effective on June 30, [2013]2014 unless an ordinance extending this ordinance is properly submitted to the Board of Selectmen, the Board of Estimate and Taxation and the Representative Town Meeting and approved prior to that date.
(RTM, 4/9/2001; RTM, 12/10/2001; RTM 6/13/05; RTM 1/20/09)
Additions bold, deletions [brackets]
EXPLANATORY COMMENTS
During the discussion of the Senior Citizen Tax Credit program last year the members of the Board of Selectman agreed that the option of a tax deferral should also be considered for our senior citizen population. Peter Tesei appointed a working group in July of 2009 and asked the committee to report back with their recommendations for amendments to the existing ordinance that would permit implementation in time for 2010.
The committee consisted of: Samuel Deibler, Catherine Brennan, Jim Dougherty, Gordon Ennis, Bob Tuthill, Jim Campell, Nancy Barton, Ted Gwartney, Peter Mynarski, Eugene McLaughlin and John Crary, Chairman. Jim Campell later resigned from the committee due to a scheduling problem. The committee met eight times and reviewed the experience of other communities, the options that were available, the legal issues that were involved and the projected costs of such a change.
The deferral of property taxes is permitted under State law and has been adopted in various forms by 29 other municipalities within the State. However, less than 1,000 participants have joined the program within these municipalities. The Town of Westport has the largest number of participants at 211. During our review of tax deferral programs by other municipalities it was clear that there was no uniform program. Income limits, the value of the underlying property, and the amount that could be deferred were at variance. Within Fairfield County for instance, the maximum income went from $45,000 in Norwalk to $100,000 in Westport and the amount that could be deferred went from the incremental increase in annual taxes in Fairfield to 100% of the real estate tax levy in Westport for those whose
income was under $75,000. (Westport also permitted the incremental increase in annual taxes to be deferred for those whose income was above $75,000 but below $100,000.) Throughout the rest of the state the variances were even more diverse.
Most of the meetings of the committee were spent considering the elements that would make up a tax deferral program. Amongst these were: the age at which a senior could participate, the maximum income limits permitted and the amount of taxes that could be deferred in relationship to the value of the underlying property. Other considerations were: should a lien be required of all participants to secure the Town’s deferred taxes, shall participants who elect to defer taxes also be eligible for the tax credit program, what interest rate should be charged for the taxes that have been deferred, what will be the cost to the Town to administer the program and finally, what will be the impact of a deferral program on the Town’s annual tax revenue.
In order to consider these options the committee studied what other communities had adopted, reviewed financial models of projected participation and the resultant costs and debated the merits of each issue. Initial decisions reached were that a lien had to be entered on all properties who elect the tax deferral option to secure the Town’s legal position, interest should be charged on the taxes deferred, and the interest rate should be sufficient to cover what the Town would have received through normal investments plus an amount sufficient to cover the Town’s administrative costs. The committee settled on the 10 year US Treasury Note plus 2% as being a reasonable. The committee also agreed that this rate should be reset annually to recognize the market place and the rate would be
levied against the aggregate amount of taxes deferred.
The committee also agreed to mirror many of the elements of the existing tax credit program. The age limit would be set at 65 and the maximum income limit would be $60,000. Some consideration was given to raising the age limit to 75 to assure that the costs to the Town were not beyond our expectations. We learned that the average age of participants in the Town’s tax credit program was 82 and the number of people in the group from age 65 to 75 was approximately 16% of the total. Given the relatively small number of people in this group it was viewed as not necessary to increase the age above 65. The committee members also agreed that the maximum amount that could be cumulatively deferred could not exceed 50% of the assessed valuation of the property.
The last areas that the committee considered was the size of the benefit, the affect on the tax credit program and the cumulative affect of both on the Town’s tax revenues. The members agreed that participants should only be eligible for the tax credit program or the tax deferral program, but not both. Given the unknowns on how many people would actually make use of the program it was considered prudent to err on the side of caution until we had a base of knowledge from which to make decisions. The committee felt that it would take two to three years to get a better understanding on how many and why the program was attractive to certain groups of residents. The committee agreed that the current sunset provision in the ordinance should be extended from 2013 to 2014 to give sufficient time to
gather meaningful data.
Finally, the Committee members settled on a flat $3,000 tax deferral option for all income categories between 0 and $60,000. $3,000 was large enough to be consequential but not too large as to create a large unknown for the Town’s budgeted revenues. Financial models were prepared that depict usage by 25 or 100 seniors. While the number of seniors who actually make use of the program is unknown it was pointed out that the cost will be somewhat muted due to the requirement that if you participate in the tax deferral program you may not file under the credit program.
Due to the large number of participants in the Town of Westport program (more than 20% of the State’s total). The committee spent some time reviewing their program and considering the potential for a similar affect on Greenwich. A side by side comparison of the programs depicts some of the key areas that affect the large participation in Westport. Amongst these are the following: Westport’s permits 100% of all property taxes to be deferred for people with incomes up to $75,000. People with incomes between $75,000 and $100,000 may elect to defer the size of their annual tax increase. Westport also permits homeowners to select both the credit program and the deferral program. The Town also charges a lower interest rate than what has been proposed in the Greenwich
program. All of these elements, plus a program that dates back to the 1980’s have resulted in an unusually large level of participation. We don’t believe this level of participation is representative of what we will experience.
The committee believes that the program as proposed for Greenwich should be approved. Controls are in place to assure that the funds deferred will not prove to be a burden to the community. The program should however, be sufficiently attractive for those residents whose circumstances make this program an option that a real benefit is available. Like many government programs compromises were required to reach a consensus. We believe that until more data is forthcoming from several years of actual experience that this proposal is a practical and responsible first step and we urge that it be presented to the RTM for adoption.
DEPARTMENT: Budget Overview Committee, 11/19/2009
REFERRED TO: Education, Finance, Health & Human Services, Parks &
Recreation,Public Works, Town Services Committees
VOTES: NA
RESOLVED,
Whereas the Town of Greenwich faces the same fiscal challenges that our nation, other municipalities, private corporations, and many households face, with falling revenues, reduced subsidies and donations, increasing health care and other fixed costs, losses in the value of retirement accounts and the need to make additional contributions to those accounts,
Whereas state and local municipalities, private corporations,~and local organizations like Greenwich Hospital have performed thorough reviews of operations and have implemented meaningful and sustainable cost reductions while maintaining or even increasing the level of services provided through efficiency gains,
Whereas the RTM desires to inform the First Selectman, the BET, and the Board of Education regarding the concerns of citizens about our fiscal condition and the need to reduce annual operating expenses while maintaining the high level of service Town residents expect,
NOW THEREFORE, it is the sense of the Representative Town Meeting that:
- a prudent and appropriate budget for fiscal 2010-2011 include a reduction in operating expenses of 5%,
- a prudent and appropriate budget for the Board of Education should avoid spending growth (without slighting capital to preserve buildings) in fiscal 2010-2011 while maintaining as near as possible the same level of service that is provided now,
- that the savings identified and realized in the reduction of operating expenses be used to rebuild the Town’s reserve funds and be put towards capital maintenance projects as a priority over new capital projects, and that delaying or neglecting capital maintenance is not an acceptable operating cost reduction,
- that due to the difficult circumstances affecting the Town’s taxpayers, the mill rate increase, previously 3.5% annually, should be reduced, and
- that the projected increase in the Town’s debt to record levels represents a burden on our residents, neighbors and taxpayers which is unwise and must be avoided.
EXPLANATORY COMMENTS
Important Considerations affecting the 2010-2011 Budget & Beyond
Sense of the Meeting Resolution
Objectives: Influence the 2010-2011 Budget & Beyond
Live within our Means
Provide a Sound Financial Footing for the Future
1. Operating Expenses and Employment. Ninety-four percent of the current annual budget of the Town of Greenwich is allocated to operating expenses. Employment costs are the largest part of the budget. Approximately 77% of our Town’s spending is employee costs, including benefits. Greenwich has 13.5 employees per one thousand residents (after adjusting for schools, Nathaniel Witherell, and the Griff golf course), while other nearby municipalities range from only 7 to 11 employees per thousand. To create a prudent budget, employment costs must be reduced and efficiencies must be found.
2. Debt. The Town’s levels of bonded debt and notes were modest during the 1990s. As a result of deficit spending our debt is projected to increase to record levels of over $195 million in five years, as shown below. (These projections are subject to change, either positive or negative.) Repayment of this debt will require the town to run surpluses as large and as long as the deficits which created the debt. Such surpluses are difficult to imagine.
Source: Comprehensive Annual Financial Reports, Projection by Town Comptroller
3. Pension Contribution. Due to the financial crisis, the market value of the assets in the Town’s Pension Fund has fallen from $321,150,186 at July 1, 2008 to $277,403,147 at August 31, 2009. As a result, the required payment to the Defined Benefit Plan (Pension Fund) is expected to increase from $7,161,824 to an estimated $14,000,000 in fiscal 2010-2011, according to the Town’s Retirement Board.
4. Collective Bargaining Agreements Cost Increase. For the single year 2009-2010, agreements were reached with several of the collective bargaining representatives (unions) which provided for a 0.00% increase in general wages, although step increases were still present. For 2010-2011, general wages for the largest group, the teachers, are contracted to increase 3.00%. Most of the other groups’ wages will be negotiated in the spring of 2010. These wages will increase, since the recent 0.00% agreements were extraordinary in nature. If the general wage increase for the employees under the 7 contracts to be negotiated in the spring is for example 2.00%, which is less than almost all recent increases, then
the sum of annual wages for all represented employees would increase $3,700,000. Greenwich needs to operate more efficiently.
5. Capital. Planned capital spending more than doubles from $20,335,000 this year to $54,125,000 in 2010-2011, according to budget projections. Annual capital spending in the upcoming six fiscal years (through fiscal 2016) is $305,782,000 while the amount of tax revenue designated for capital spending (the tax levy) is $219,000,000. This large and growing capital spending will require the Town to increase its debt by $86,782,000 over this period, unless operating expenses are reduced or revenues increase.
6. The Nathaniel Witherell. Capital spending of $29.6 million for The Nathaniel Witherell was planned for fiscal 2009-2010. This item was then moved to a separate off-budget category and does not appear in the capital and debt amounts above. If approved, this expenditure would require substantial additional debt. The Town’s plan would be to issue general obligation bonds, for which the Town’s taxpayers, (not the Witherell) would be ultimately responsible.
7. Income From Fees. The Town’s income from Conveyance Taxes and Building Permit Fees was budgeted at $13.3 million in fiscal 2009-2010. The actual income was $5.8 million. These revenues are budgeted at $8.4 million in fiscal 2010-2011. The current low level of these fees is largely determined by the level of home sales, which are very depressed and expected to continue to be weak in 2011.
8. PAYGO. The practice of spreading large capital items over five budget years (PAYGO) will end in 2010-2011 because the Town no longer has adequate cash. This will require the Town to borrow or raise taxes.
9. Cash. The Town’s cash reserves are low, or zero. The Town has no savings for rainy days, or for future needs such as improvements in infrastructure for flood control.
10. Taxes. BET budget guidelines target mill rate (tax) increases of between 2% and 5%. Actual increases have been 3.5% annually the last few years. Although these numbers may seem modest, the compounding effects of these kinds of increases can be substantial. For example, if taxes continue to increase 3.5% annually, they double in 20 years. If taxes increase 5% annually, they double in about 14 years. The growth rate of our taxes exceeds the rate of inflation.
Greenwich is not alone in the serious fiscal challenges it faces. States and municipalities around the country are reviewing and streamlining operations to prepare for the uncertain fiscal future. According to an October 2009 study by the Center on Budget and Policy Priorities, at least 48 states addressed or are facing shortfalls in their budgets for the new fiscal year totaling $179 billion or 26 percent of state budgets. States find themselves obliged to reduce spending in all major areas, including health care, services to the elderly and disabled, K-12 education, and higher education. The current circumstances are causing most municipalities to reduce spending. The Town of Greenwich needs to reduce spending while maintaining high service levels through streamlined and more efficient
operations.
These and other factors make budgeting difficult for 2010-2011 and future years. The BET and the Office of Selectmen continue their serious efforts to budget carefully. For its part, the RTM has a duty to understand the financial situation, and to participate in appropriate responses. For these reasons, the Budget Overview Committee recommends that the RTM adopt a Sense of the Meeting Resolution which sets forth a general direction for the creation of a successful budget. The foregoing Resolution
- Indicates the gravity of the current unusual circumstances, and
- Assists the Town Departments, Office of Selectmen and Board of Estimate and Taxation by
- Expressing citizens’ observation that the unusual conditions of the Town’s finances at present call for greater-than-usual savings and reductions in taxing and spending, and
- Indicating a general direction for budget development which is appropriate and prudent.
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