City Council

CITY OF DANBURY 155 DEER HILL AVENUE DANBURY, CONNECTICUT 06810 www.danbury-ct.gov ELISA ETCHETO PHONE: 203-797-4514 LEGISLATIVE ASSISTANT FAX: 203-796-1529 e.etcheto@danbury-ct.gov MEETING NOTICE Who: City Council – Ad Hoc Committee When: 6:30 P.M. – Monday, December 9, 2024 Where: 3C, 3rd Floor City Hall, 155 Deer Hill Avenue Purpose: Elderly Tax Relief Programs (Meeting #4) *Agenda Item on file in the Legislative Assistant’s Office and on the City website. Committee Members, Department Representatives & Petitioners: Benjamin Chianese, Chair Frank Salvatore, Council Emile Buzaid, Council Corporation Counsel Representative Dan Garrick, Finance Director Donna Murphy, Tax Assessor Mayor’s Office Posted: Town Clerk Information Board City Website Calendar  DRAFT - CITY COUNCIL MEETING December 3, 2024 - 7:30 P.M. Honorable Mayor, Roberto Alves, called the meeting to order at 7:31 p.m. PLEDGE OF ALLEGIANCE & PRAYER The Pledge of Allegiance was led by Sean Hatch. Councilman McAllister led all in prayer. ROLL CALL COUNCIL MEMBERS PRESENT: Hawley, Rickert, Simone, Gartner, Salvatore, Peter Buzaid, Emile Buzaid, Coelho, LaPine, Wallace-Smith, Dennis Perkins, Fox, Robinson, McAllister, Duane Perkins, Chianese, Rotello, Giordano, Tomchik COUNCIL MEMBERS ABSENT: Elmer, Britton PRESENT: 19, ABSENT: 2 ALSO PRESENT: Dan Casagrande, Corporation Counsel; Robin Edwards, Assistant Corporation Counsel; and Elisa Etcheto, Legislative Assistant. 15. REPORTS – Ad Hoc: Review of Elderly Tax Relief Programs (Amendments to Ordinance Sec. 44-51, 44- 53, 44-54 and Establishment of Sec. 44-41) A Motion was made by Councilman P. Buzaid, seconded by Councilman Rotello to waive the reading of the minutes as all members have copies and copies are available with the Legislative Assistant’s Office, and to accept the reports as presented. Motion carried unanimously. A motion was made by Councilman Simone, second by Councilman Salvatore, to receive the communication and recommit this back to the Ad Hoc Committee due to the substantial changes recommended by Corporation Counsel and the Tax Assessor. Motion carried unanimously. Mayor Alves recommitted the item to the same ad hoc (Chair- Chianese, Salvatore and Emile Buzaid).  ~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  ~AD HOC REPORT~ Review Elderly Tax Relief Programs (Meeting #2) Tuesday, February 20, 2024 Chairman Chianese called the meeting to order at 8:17p.m. on Tuesday, February 20, 2024. Present were Committee Members Frank Salvatore and Emile Buzaid. From the City were Joseph Mortelliti, 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, Mike Coelho, and Paul Rotello. Present from the public were Charlie Setaro, Tom Brown, Lynn Waller, Mike Flanagan, and John Waller. Chair Chianese discussed the Committees progress on the matter. He explained that the Committee will ultimately issue a recommendation for Council to not renew the existing programs. However, the City will modify the Senior Tax Freeze ordinance to allow existing participants to remain in the program if they choose to. Mr. Mortelliti confirmed that a draft of the new ordinance combining the benefits of all the programs is still a work in progress and therefore is not available to the public at this time. Ms. Murphy confirmed existing applicants will receive at a minimum the same discounts and the S.A.V.E. Program will remain active. Ms. O’Brien provided a brief overview of the S.A.V.E. Program. She confirmed that the United Way manages the volunteers. The Committee agreed to modify the language in the S.A.V.E. ordinance to clarify outside entities and exclude appointed volunteers. Furthermore, she suggested inviting the Director of Elderly Services and a representative from United Way to the next meeting. Chair Chianese discussed the Tax Freeze Program. Ms. Murphy suggested modifying the language in Section B, to clarify the year in which a tax freeze takes effect. She provided a brief overview of the following: opt-out period, income/assessment ranges, and benefit estimates. Chair Chianese requested that the City modify the language in the ordinance to make adjustments for individuals who do not receive social security benefits, but do receive pension benefits. Mr. Coelho asked about the timetable for the new ordinance. Ms. Murphy anticipates the program will go into effect next year, 2025. Mr. Mortelliti spoke on the lengthy ordinance process. Ms. Murphy explained the purpose of creating one program with a sliding scale for applicants. She confirmed applicants will not lose their benefits when combining the programs. She confirmed that there are currently, 771 people enrolled in the Tax Freeze Program. She clarified for Mr. Duane Perkins that the Tax Freeze Program is set to sunset with the 2022 Grand List, and there will be no new applications accepted next year. Mr. Rotello suggested the Committee schedule a workshop to finalize the details of the draft ordinance and application before issuing a recommendation to City Council. Mr. Perkins and Mr. Coelho requested the City provide visual aids regarding the sliding scale at the next meeting or workshop. Mr. Mortelliti noted items to be addressed in the new ordinance, and that the City will modify the existing ordinances to initiate the grandfather clause as well as the transition process of benefits. Mr. Setaro requested that the Committee review Section 44-53 (J-9) of the Senior Tax Freeze Program, regarding the year that is used to calculate the freeze. Chair Chianese requested that the following be presented at the next meeting: draft ordinance, updated existing ordinances (sunseting programs), draft application, confirmation of the year used to calculate the Senior Tax Freeze benefit, and teacher pension research. Ms. Murphy clarified the S.A.V.E. application process and tax criteria with Mr. Brown. 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 9:52 p.m. Respectfully submitted, Ben Chianese, Chair, Frank Salvatore & Emile Buzaid  ~AD HOC REPORT~ Review Elderly Tax Relief Programs (Meeting #3) Tuesday, November 12, 2024 Chairman Chianese called the meeting to order at 6:31p.m. on Tuesday, November 12, 2024. Present were Committee Members Frank Salvatore and Emile Buzaid. From the City were Joseph Mortelliti, Corporation Counsel/Outside Counsel; Dan Garrick, Director of Finance; Donna Murphy, Tax Assessor; and Taylor O’Brien, Mayor’s Office. Ex Officio Members present were: Duane Perkins, Peter Buzaid and Bill McAllister. Present from the public were Charlie Setaro, Tom Brown, and Mike Flanagan. Chair Chianese discussed the Committees progress on the matter. He identified the programs that will be sunsetted and amendments to existing ordinances. Ms. Murphy provided an overview of Ordinance Sec. 44-51: Tax credit for elderly homeowners; 810 applicants to the program for the 2023 Grand List; anyone on the program will remain on the program as long as they meet income guidelines. The only amendment is to sunset the program. Chair Chianese confirmed for Member Salvatore that participants can choose to take advantage of the new program instead of this one. Chair Salvatore clarified for Duane Perkins that the ordinance will continue to exist, however, it will not be available to any new applicants. Ordinance Sec. 44-52: Tax deferral program for elderly homeowners; no applicants have qualified for this program in the last eight years. Ms. Murphy confirmed for Duane Perkins that the benefit allows one to defer 25% of their property taxes with 1% interest. Member Salvatore discussed the intent of the ordinance and Mr. Mortelliti clarified the recuperation process including placing a lean on the property. There will be no amendments to this program. Ordinance Sec. 44-53: Tax freeze for elderly programs; Ms. Murphy discussed the sunset date that was already in place. The amendment is to clarify the existing language, noting that anyone who was on the 2022 Grand list could and can remain on the program; no new applications were accepted in 2023 because it automatically sunsetted. Duane Perkins asked for clarification on the issues of the existing program and savings for participants on the new programs. Ms. Murphy confirmed 565 participants in the program for the 2022 Grand List. Member Emile Buzaid asked about property value; 200% of the median value of homes. Ordinance Sec. 44-54: Energy tax credit; Chair Chianese noted that the only amendment is to add the language to sunset the program allowing exisiting participants to continue on the program as long as they meet the income minutes. Ms. Murphy confirmed 945 applicants for the 2023 Grand List; she confirmed that if an applicant continues with the energy tax credit, they can not apply for the new program. Ms. Murphy introduced the new Ordinance, Sec. 44-71; she identified income limits provided by the state. Chair Chianese read through the proposed ordinance, and Ms. Murphy identified possible changes to the draft. Member E. Buzaid, Duane Perkins and P. Buzaid asked how value is determined and noted concerns with increased assessed values and the limit in the ordinance; Ms. Murphy confirmed assessed value is used and the median value can be reviewed after the next revaluation (Oct. 1, 2027). P. Buzaid asked about verification requirements for those who do not file taxes; Duane Perkins asked about verifying delinquent taxes before offering the credit; Member Salvatore asked about past wording to address multifamily dwellings (four or more dwellings); Duane Perkins asked about identifying tax credits on bills; Ms. Murphy confirmed there are state and local credit lines on the bill. Duane Perkins asked about self-reporting when they are no longer qualified for a credit; Member Salvatore asked about credits when properties are sold; Ms. Murphy confirmed the credit would be prorated. Chair Chianese note that a section (k) will be added and the chart will be replaced with a reference to the state statutes for annual changes; Member Salvatore asked for clarification on the limits. A motion made by Committee Member Salvatore, seconded by Committee Member E. Buzaid, to recommend to the council of the whole the adoption of Section 44-71: Tax Relief for Elderly and Totally Disabled Homeowners, subject to a public hearing, as amended. Motion carried unanimously.  A motion made by Committee Member Salvatore, seconded by Committee Member E. Buzaid, to recommend to the city council that we approve the amendments to Sections 44-51, 44-53, 44-54. Motion carried unanimously. A motion made by Committee Member Salvatore, and seconded by Committee Member E. Buzaid, to adjourn. The motion carries unanimously. The meeting adjourned at 8:24 p.m. Respectfully submitted, Ben Chianese, Chair Frank Salvatore Emile Buzaid  ORDINANCE CITY OF DANBURY, STATE OF CONNECTICUT CITY COUNCIL 2024 Be it ordained by the City Council of the City of Danbury: That the Code of Ordinances of Danbury, Connecticut is hereby amended by adding to Chapter 44, Article II, Division 2, entitled “Tax Relief for Elderly & Totally Disabled Homeowners,” consisting of one (1) new section, which said sections read as follows: Sec. 44 - 71. Tax Relief for Elderly & Totally Disabled Homeowners (a) The City of Danbury hereby enacts a tax relief program for elderly and totally disabled homeowners, pursuant to C.G.S. § 12-129n, for eligible residents of the City of Danbury on the terms and conditions provided herein. This section is enacted for the purpose of assisting elderly and totally disabled homeowners with a portion of the cost of property taxation commencing with the Grand List of October 1, 2024. (b) Any elderly and totally disabled person, whether single or married, who owns real property in the City of Danbury, or is liable for the payment of taxes thereon, pursuant to C.G.S. § 12-48, or retains a life use in the property, and who occupies the property as a principal residence may apply for a tax credit on the real property tax bill in accordance with the below table, provided the following conditions are satisfied: 1. Such person is: a. sixty-five (65) years of age or over at the close of the previous calendar year, or such person’s spouse is sixty-five (65) years of age or over at the close of the previous calendar year and resides with such person, or such person is sixty (60) years of age or over and the surviving spouse of a taxpayer qualified for tax credit under this section at the time of the taxpayer’s death; or b. Such person is under age sixty-five (65) and eligible in accordance with applicable federal regulations to receive permanent total disability benefits under Social Security, or has not been engaged in employment covered by Social Security and accordingly has not qualified for benefits thereunder, but has become qualified for permanent total disability benefits under any federal, state or local government retirement or disability plan, including the Railroad Retirement Act and any government related teacher's retirement plan, in which requirements with respect to qualifications for such permanent total disability benefits are comparable to such requirements under Social Security. 2. Applicant has principally resided in the City of Danbury for a minimum of five (5) years and at least one hundred eighty-three (183) days each year, and paid taxes to the City of Danbury for a minimum of five (5) consecutive years prior to applying for tax relief.  3. The maximum value of the Applicant’s properties shall not exceed two (2) times the median assessment from the most recent revaluation. 4. Applicant shall provide a copy of an Internal Revenue Service (“IRS”) transcript upon request from the Assessor for asset verification purposes. Applicant shall provide any other information, records, data and documentation requested by Assessor to accurately ascertain, determine and verify Applicant’s assets. 5. Applicant’s motor vehicles shall be registered with the Connecticut Department of Motor Vehicles. 6. Applicant is not receiving or shall not receive tax relief under Sections 44-49 through 44-70 of the Code of Ordinances. (c) Tax credits are to be calculated using the Applicant’s gross income, plus one-half of the Applicant’s Social Security benefit. (d) Applications under this section must be filed with the Assessor between February 1 and May 15 in the year following the list year with respect to which benefits are claimed hereunder. The Applicant must reapply every two (2) years to continue eligibility for relief hereunder. (e) Applicant shall not have received qualifying income during the calendar year preceding the fiscal year for which a real property tax benefit is claimed in excess of an amount that is ten thousand dollars ($10,000.00) greater than the limits as established and adjusted pursuant to the State of Connecticut Office of Policy and Management guidelines and C.G.S. § 12-170aa(b). The term "qualifying income" includes total adjusted gross income, tax-exempt interest, realized capital gains, veterans disability payments and Social Security payments, as determined under the Internal Revenue Code, as amended. (f) No tax credit shall be given under this section to any person who owes delinquent taxes to the City of Danbury. The Applicant shall submit a certificate from the Tax Collector to the effect that no such delinquent taxes are owed. (g) The Assessor shall determine whether each Applicant is entitled to a tax credit under this section and shall compute the amount of the tax credit to which each qualified Applicant is entitled, and cause a certificate of tax credit to be issued in such form as to permit the Tax Collector to reduce the amount of tax levied against the Applicant. The tax credit shall be applied proportionately to the tax payments. (h) Only one (1) tax credit shall be allowed for each parcel of land eligible for the tax credit under this section. In any case where title to such real property is recorded in the name of the taxpayer or the taxpayer’s spouse, who are eligible for tax credit, and any other person or persons, the amount shall be prorated to allow a tax credit equivalent to the fractional share in the property of such taxpayer or spouse, and if such property is a multiple-family dwelling, such credit shall be prorated to reflect the fractional portion of such property occupied by the taxpayer, as provided by state statutes, as they may be amended. Persons not otherwise eligible shall not receive any tax credit. (i) If the Applicant has qualified and received tax relief under the provision of this section, but subsequently becomes disqualified for any reason, the Applicant shall notify the Assessor on or before February 1 of the year in which the Applicant becomes disqualified  and the exemption shall cease for such fiscal year and such disqualification shall continue until the Applicant is eligible again and files a new application approved by the Assessor. (j) If the Applicant in receipt of a tax credit for any assessment year transfers, assigns, grants or otherwise conveys in the assessment year the interest in the real property to which such claim for tax credit is related, the amount of such tax credit shall be a pro rata portion of the amount otherwise applicable in such assessment year to be determined by a fraction, the numerator of which shall be the number of full months from the October 1st in such assessment year to the date of such conveyance, and the denominator of which shall be twelve (12). If such conveyance occurs in the month of October, the grantor shall be disqualified for tax credit in such assessment year. The grantee shall be required within a period not exceeding ten (10) days immediately following the date of such conveyance to notify the Assessor of the conveyance, whereupon the Assessor shall determine the amount of tax credit to which the grantor is entitled for such assessment year with respect to the interest in real property conveyed and notify the Tax Collector of the reduced amount of tax credit. Upon receipt of such notice, the Tax Collector shall, if such notice is received after the tax due date, within ten (10) days thereafter mail or hand deliver a bill to the grantee stating the additional amount of tax due as determined by the Assessor. Such tax shall be due and payable and collectible as other property taxes and subject to the same liens and processes of collection, provided such tax shall be due and payable in an initial or single installment not sooner than thirty (30) days after the date such bill is mailed or hand delivered to the grantee and in equal amounts in any remaining, regular installments as the same are due and payable. Tax Credit Tax Credit Qualifying Income Married Unmarried Tier One State Plus $10,000 $1200 $900 Tier Two State Plus $10,000 $1000 $700 Tier Three State Plus $10,000 $800 $500 Tier Four State Plus $10,000 $600 $400 Tier Five State Plus $10,000 $500 $300