City Council

~AD HOC REPORT~ Review of Elderly Tax Relief Programs Thursday, January 25, 2024 Chairman Chianese called the meeting to order at 6:31 p.m. on Thursday, January 25, 2024. Present were Committee Members Frank Salvatore and Emile Buzaid. From the City were Les Pinter, Deputy Corporation Counsel; Joseph Mortellitti, Corporation Counsel Representative; Dan Garrick, Director of Finance; Donna Murphy, Tax Assessor; and Taylor O’Brien, Mayor’s Office. Ex Officio Members present were: Duane Perkins, and Peter Buzaid. Present from the public were Charlie Setaro, Tom Brown, Lynn Waller, and John Waller. Ms. Murphy discussed the Elderly Tax Relief Programs. The State requires all assessors to provide tax relief programs; however, the programs are fully funded by the City. The City calculates income limits based on gross income plus 100% of social security, per State guidelines. The programs and benefits provided for year 2022 were: City Local ($325,761), City Energy Assistance Program ($224,157), Tax Freeze Program ($434,380), S.A.V.E. Program ($13,300), Deferral Program (0), Veterans Program ($275,352); totaling $1.2 million in tax relief. She explained the programs’ requirements and implementation challenges. Furthermore, she suggested the City implement one program that provides maximum relief for citizens. The State statutes implicated in the programs are: 12-129 (N) and 12-48. Mr. Mortelliti stated they will review Statute 129(N) to verify if the Statute will allow the City to implement only one program. Mr. Duane Perkins spoke on the importance of reviewing the existing programs and performing community outreach. Ms. Murphy clarified the Veterans Program’s requirements with Ms. Waller. The Statue allows 10% relief, up to $10,000. Mr. Setaro spoke on the Tax Freeze Program’s challenges. Ms. Murphy clarified the income guidelines for disabled applicants with Mr. Waller. Ms. Murphy recommended the following changes for the new program: A sliding scale similar to the State (mirroring State income limits with an additional $20,000); The use of gross income plus 50% of Social Security (this will help increase the number of qualified applicants); Asset verification, with property value cut- off of $500,000 (based on the current median home value of $250,670); IRS transcript; Disclosure of rental property/use; Grandfathering existing recipients; Resident/Taxpayer of the City requirement of at least 5 years; Sunset/eliminate the Tax Freeze Program; Community outreach (to get more applicants). Ms. O’Brien favors implementing one program to simplify the public’s understanding and eligibility requirements. Mr. Peter Buzaid asked about participation, Ms. Murphy noted that there were 874 total applicants in 2022. The City anticipates the new program will increase that number. Ms. O’Brien discussed various opportunities where the program can be promoted. Member Salvatore cited the 22 Census; 14.8% of the population (12,871) are 65+. Ms. Murphy addressed Ms. Waller’s concerns regarding income limits. Ms. Murphy explained how applicants who apply for the new program would not be eligible for an older program. Furthermore, the new program will greatly benefit taxpayers and should provide more tax relief. Chair Chianese asked about State statutes and City ordinance dates for the acceptance of applications. Ms. Murphy explained; the City will start accepting applications for the existing programs on February 1, 2024; ends May 15, 2024. Chair Chianese suggested extending the deadline to June 2024, Ms. Murphy stated the deadline cannot be extended at this time due to extensive review times and tax bill deadlines. Mr. Pinter stated that a new ordinance must be fully vetted by legal and then the City Council. Furthermore, he noted that the new program would affect the City budget which will be presented in April. Mr. Garrick expressed concern regarding the proposed implementation of the new program and its affect on the proposed budget. Chair Chianese stated that the Committee will review the following at the next meeting: draft application, draft ordinance, and demographics data. Member Salvatore asked about expediting the process. Mr. Pinter explained the process of enacting an ordinance; the Committee could review the draft ordinance in late February, the City Council could review the proposed ordinance in March or April, and a Public Hearing and Committee of the Whole meeting would take place in April. Member Salvatore suggested that the new program take effect in 2025 to allow for adequate legal review and community outreach. Mr. Setaro requested the City review Section (44-53) J-9 of the City Ordinance, and take into consideration the pensions of federal workers vs. social security income. A motion made by Committee Member Salvatore, seconded by Committee Member E. Buzaid, to continue the ad hoc subject to the call of the Chair. Motion carried unanimously. A motion made by Committee Member E. Buzaid, and seconded by Committee Member Salvatore, to adjourn. The motion carries unanimously. The meeting adjourned at 8:00 p.m. Respectfully submitted, Ben Chianese, Chair Frank Salvatore Emile Buzaid