HomeMy WebLinkAbout1988-09-20 Finance Committee Minutes FINANCE COMMITTEE MEETING 9,20, '88
ASSENT MCMEhlAt1IN,GF:F_EhIE. HFIF:RISOh!
MEETING CALLED TO IJFEIIEF: AT 7 : 40
FRES:ENT 19"F THE FINCf:HCS F:'EG!UE:C:T lJEF2F_ F!SSE' ::=:CIF.•. LOCI::E,
AND AF'F'RA-SEF. 4'AhIO TINE.
THI SE DENTLEMEN WERE PRESENT TO ENLIGHTEN THE COMMITTF_E
ASGUT THE WORKINGS OF REAL ESTATE CLF13SIFICATION. SOME OF
THE INFORMATION OBTAINED FOLLOWS
1. ONLY THE SELECTMEH CAN DISTITUTE CLASSIFICATION FIND 'SET
THE TR ,; FATE DIFFERENTIAL.
a.. THE MA}:I hllJt1 SPREAD EIETLJEEh1 CIGMMERC IFIL AhlD RE IDENT IAL
RATES IS 150% 1175% IFA TOLIN ALPEADY HAS CLRSSIFICATION •Y:
I': AT THE MAX. i PER STATE LAW.
S. THE EFFECT OF ACCEPTIHO CLFiSSIFLCRTIfM FIND SETTING THE
RATES AT THE 1509' LEVEL WOULD CHANGE THE PRECEHT $1:3.34
IIIIFFIIFTI RFITE TO A PE`_IOEli-r I1=11._ RFITE OF 312.4' RI-ICI COt9t1ERCIAL
P.I=ITE III I :Ei.',ii . THIc: L.IOULD THCFE H ,F Ti9- . J 011 ICOMN RI_
F FOPELIi , 7o-17J. THTE: I:: FI HERVY DUF:OEN 014 R St'1ALI_.
UP- 11,F ' IFIt I FS WFIS °'CLIHT :U OUT SY 1-1119FLE I..:riTALFFiMlj_
4 . DIE fl '3 'SH`TIHu T,=I 'IIFID 111.4 FCIDN REP111FI'-ITI.AL TI-1
C 17 t 1MFFIC I:'IL� CLA�=s I F I CAT ION b;fnJLD OEFlEF:ATE FIOOIT IfINRL RE'JEF{UE
'r:Y THI.::[HO CfIt1MERUTHL "NEN GROWTH" AT A HIFiHER FATE [20.01 I11
THE ADF:':'E E:MAMFLE:) PATHFI.: THRN THE_ F'RESF.HT 31 :. 34. ACCORDIHC
TO R FIVIT01ir RY THE HRIFIMAH THE ADDITIONAL
f. VENUE Wi nj L.D BE C HSJ IE '. I` LE OH VE!J -,F101-0 1-11 AT THE LFINDFILL
HI �i4tE THE ADOCC R E:'Elil [ tl JER G COULD 1 D .•E FIVE.F:
3. L:ci, :3:JD F"EF. YEiRF:.
F. T'HEIdL IS AHUTHER MEi_HAHI :M ALLOWED EY STRTE LAW TO SHIFT
TIR:•i LDUFLIEH CRLLEO THE "RESIDElJTIAL_ E;EMF'TIOW, WHICH IN
EFFECT LOUEF:S THE TA',i Ohl LOWEF'. VALUECI PROPERTY AhID INQREASIES
THE TAS: OI•l HIGHER VALUED PROPERTY. THE AS:--ESSOF.:S ADVISE
AOAIII7T THDE: RS IT I' VERS,' DIFFICULT TO FIOt1IHISTEF: FMD HAS
OHL.Y A 11AMINAL EFFECT. ,
_. THE WHO C. I_I=It'MEll1ED CLAi;3IFICATICIH FELT THE -
TIMME TO CLAS%IFY HAD ARRIVED DHE Til PPOJECTED LFINCIFILI_
DF_Vp_f:'J=•MENT. THEY ALSO FELT IT WAS FRIF: TO HOMART TO LET
THEM MOW UP FROH WHAT KIND OF REAL ESTATE TAX LOAD TFIEY
WILL EVENTUALLY FACE.
. THE rl.. SE?SOF: WHO VOTED Fe319 [I -T i;LFc3 E ' ="'IOfI FELT THAT
THE C EF'TY .JC. CTF I '. Lf.E `ill :7T PI-[I rI..: THAT NUCH YET,
T III I _,O P FUTUF:C CHTE THE 'ELECTt'lEN (JILL
THE DECISION Ohl WHAT PERCENTAGE OF
ASPREAD IN RRTES TO CHOOSE IS THEIR'S AND WILL BE A VERY
DIFFICULT DE=TSION. WE Doti T WAHT TO DAMAGE_ :=MALL BUSIFIESSES
AND VET DO HOT WAFIT TO MISS THE OPPORTUHITV TO TAX'
COMMEF:CIAL _PIIWTH IN THE P.U. D. EUIHE AT R (HIGHER RATE.
MR. POFTER FELT THAT CLPIS.SIFICATION WAS A FORM OF TAXATION
WITHOUT F:EI=RESENTATION, AN ARGUMENT WITH SOME 'dRLIDITY.
HOWEVER THE ENABLING LEGISLATION L-1195 PASSED BY THE STATE
LEGIS:I_PITURE IJHER.E MOST EI_ISINES: DOES HAVE REPRESENTATIOH
BOTH AS VOTIHG CITIZENS AND THPU LOBBY'S .
THE CHAIR WILL ALSO PUT TOGETHER A LITET OF WHRT SUFIFCUHDIHG
ClIMMUNITIES: OD RELRTI'JE TO CLASSIFICATION. THE LIST WHICH
THE CHFIIR HRO AVAILABLE WAS ILLEGIE;LE TO ALL ON THE
COMMITTEE EXCEPT THE CHRIP CWHO ODDLY ENOUGH HAD
WRITTEN THAT LICsT HIMSELF).
AFTEF=: THE ASSESSORS LEFT THE CHAIR WENT THRU THE FOLLOWING
ITEMS WITH RIHAEIING SPEECI.
"DON WHPF'ENT FOR 'IND F'AYNEHT OF AUDIT FEE -- %11 .000
+ READ LI fTEF.'I eEIHT TO -:TATE RIcF REQ 4 -11. I°IR-ILTiIll IN LOCA(_
HID -IIT_-', THETF'. F!E: '.TJF:ATI1_I.1.
+RFc'IJF it D I-EPTIFTED F"n:EF I_li'c:H FIT ''t HH I:=:, 2 ",lu,017.
+ E:E.PDh TEF( 1-114 LFICUF'. NF_COTIHTIOI:H. FIIF FOLIE E. FIRE, ❑. F'. Id. .
LI IL FHGIIII T.Hu . IIF( (_IFR TI F'.r RHO iAR10IJS E''CHOOI_
Il H'_ AHO IH FVE TIWH HPI (AID n.
+FFH_3EN LR H-IH L.JJ_ _!-.T Fl F. _EGFyI -IEP'.. TCE_: FUF:r'1
+ SIEIHT OVER THE F'F:OPGSED FALL TOG-111 MEETING WF1F,REHT WHICH
I ;flTRII I -":'_FAL MfX4EY HF II ._._3 THE 4 _A J.' . '�T R'IF AHICH ARE
1101"Ei= TI F. F'GE q :%I_I7', 1r- . 5-. 11I 10H. ._. HEW FIRE STRTIOH
!9I ; ',I. ' J.IIJIi_IF' IL I , r ICE ACE 'E4 MII_LICIH 4.
(;IIT fP F'IL I; N F'F!11, +I=1L. I=T ;I I OF`.1 'F'1TE $81i1 . r1LJ0.
h Er.?F 1. I .I_v _ :FSI: IIFf II;:IE: CI I Tl .i I. II itliH) .
TAF" F'I.'RTEF'. FOE NI-Ii-Cl FF:ESEi'i= 2 FOSIF..:L.E METHODS OF
FUID1141--, I_F'I-D SETF_ PLAH R.F_VIELIS !:•i-. Fn45^?IF_;I_Y I14TERNALLY
GENERATED BTUDIESI . THESE ITEM^ SEEM VERY HARD TO BUDGET FOR,
ANO WE AF:'E (_004:I1•IG FOR. A 'JIABLE MF_THim OF FUINDING THESE
:jTIl0IF9i I.JITHNIT COHc:TATtlT FIE`;F_F:VE FIND TRAHSFERS.
IHETHOIi 1. I-: F;A.:T=ALLY 1=I I .7 :FIiVE FUND FOR I .Fl:D' 9:TUDIES OR Ft
SF'ECIAI_ PE'JEHI '.E FUHD. THEY DID NOT RE:;OMMEHD Ft R.EVC.LVIIHG
FJJt40.
(METHOD; 'd, WHICH THEY FA'•GIF.., .11-11Jl_D IEE TO I-IA'•:'E T041H MEETING
VOTE_ A CUIHTIIIOEFr AF'F'ROPR:IRTIIJFI •::C'jHTIH:OEHT OH PEVENUE BEING
F'.ECEIVED 1-1-IRIJ FEES? . THE FIFFROF'RIATED FUNDS CAN BE SPENT
[IHLi IF THE FEES HR'.'E E:EEH COLLECTED.
f-1 RAISED BY DEAHE IHn!-'[(ELL. , IIH HOW THIS. SYSTEM
WOULD HLI11.:1 THE TOWN TO RECOVER ITS OWN THTERHAL COSTS OF
dTUDIE., .::!ICH AS ENGINEERING TIME RHO THE TOWN (MANAGERS TIME,
OVER RHD FIF'OVE THE OUTSIDE COIHSLILTFtHT COSTS. PORTER
ARID MUCCI WILL TRY TO F'EFINE THE PLAI'H SU IT CAN BE DISCUSSED
WITH CPLD, THE TOWN NRNAGER S: TOWN ACCOUNTANT.
NEXT MEETING IS TUESDAY 9. '27,' AND GUESTS WILL BE THE
CHAIRMAN OF THE MUNICIPAL ELECTRIC BORF'.O AND THE GENERAL
MRHRGER OF F!F_RDIFIO ELECTRIC .
A JOINT MEETIIHG IS ALSO SCHECILILED FOR lOAf WITH THE
SELE7_TMEH. AS:=:ESSORS, & SCHOOL COMMITTEE TO DISCUSS WITH THE
MUNICIPAL SPACE COMMITTEE THE TOWNS SPACE P'F.OELEMS.
THE CHAIR ALSO NEEDS H Y'ODUNTEER TO C+D WITH A GF'OUP OF
FINCOM MEMBERS FROM OTHER TOWNS TO THE F'.EGIONAL YOKE TO LOOK
AT THEIR ROOF PR.CBLEMS. YEC: FOLKS, THEY`RE BACK, WITH
ANOTHER BONDING PROP'OS'AL FOR POUFS AHD SPECIAL NEEDS. WE
INPRE33ED THEM SO MUCH WITH CUP E::PEF'.TIFE THE LAST TIME WE
TURNED THEM DOWN THAT THEY WANT OUR INPUT. WHEN I HAVE A
DATE FOR THIS EXuURSIOIJ I WILT_ ASK FOR. A '.•'OL fM`EER OR TWO. I
AM SURE THAT MANY WILL VOLUNTEER AND I WILL THEN HAVE THE
DIFFICULT TA::;k: OF CHOOSING THE LUCKY DELEGATE.
THE CHAIR'. WOULD LIKE TG REQUEST OF THE MEMBERS THAT ONCE
FI MEF_TIHiI: I:=: '_FILED TIG OF:DEFI , THE MEMEIF_F'.S WRIT TO SE.
I .OGHTTED 0? ThE CHAIR BEFI .._. SPII :HO TO 1 IC TTMES BEING
ocscus ;mm PLEASE 1.30 FITI l MF F TC' h, EEF COHFE F!'•t:ES" TO
TIM ]NUil A:-: THESE ARE4APYDIMUPTIVE 11 DI:. HOT DISPLAY
tlCOUFTEly TO FIi= III IIIHII ELi ! EDF; :F-:h IF ME DO HOT ADHERE TO
16 TO THE ADZE (E-J-EIIALLY HiEH HE HAVE GUE:LT IHUF, MEETINGS
WILL DEVOL1,1E INTO HAUS L IDUP. FEPMTHTIQH WITH THE REST OF
TOWN GOVFFN1,lE!dT FIND HENCE OUR ROLE; WILL BE EFFEDTECI.
If" -I '•;'EI,I. I FI I_V"F IF GFIGUHrj AT THI HEETHHO -Ildl; T !-1 iPE lJE
"E":PIED rr l—,!UhlD F TTI FIE
HCH L''ZC. 113) .
A IEHFT 70 ZHQW IW AT ALL .,L;I h OULI'=D MEETUnS. IT IS
N,--,T EA--,Y TO HAVE OUTSIDE UESTB COME TO FINCO9
MEETIFIi+:FS. MOST OF THEN HWE '`:'ERY BUSY LIVES THEMSELVES AND
IF THEY MAI+::E TINE TO COME TO U.S ME SHOULD BE THERE.
MEETING WA3 ADJOURNED AT IO : SO AT L•11-i[CH TIfIE :30NE VER,'
HEATED DI:3CI1SA D—iHS TOOK PLACE. '::TETE LIGHTS WEFIF_ SHUT OFF AT
SUBMITTED
DON ALLEN
E:--SECRETARY