Board of Mayor and Burgesses

MINUTES SPECIAL MEETING BOARD OF MAYOR AND BURGESSES APRIL 16, 2020 Due to the COVID-19 Pandemic, the Board of Mayor and Burgesses are practicing social distancing per executive order of Governor Ned Lamont. The meeting was held by Zoom, a remote video conferencing platform, and by phone. 1. Mayor “Pete” Hess called the special meeting to order at 7:03 p.m. with the following in attendance: BURGESSES: PRESS: L. Taf Jackson C. Marenghi A. Yilma M. Bronko J. Mizeski F. Dambowsky R. Neth RESIDENTS: J. DeOliveira R. Vitale Unable to determine due to the format C. Herb DEPARTMENT HEADS: J. Goggin, Tax Collector A. Bruce, Controller OTHERS: D. Sheridan, Board of Finance Chairman 2. Burgess Vitale led in the Pledge of Allegiance to the flag. 3. VOTED: Unanimously on a motion by Deputy Mayor Taf Jackson and seconded by Burgess Neth that the Board of Mayor and Burgesses approve the appointment of Pastor Robert E. Butkus, 127 Walnut Street, Naugatuck, CT 06770 as a member of the Saunders Trust Advisory Board, filling the expired term of Pastor P. Hicks, term to expire January 1, 2022. 4. VOTED: Unanimously on a motion by Deputy Mayor Taf Jackson and seconded by Burgess Neth that the Board of Mayor and Burgesses approve the appointment of Kathleen A. McPadden, 139 Kingswood Drive, Naugatuck, CT 06770 as a member of the Saunders Trust Advisory Board, filling the expired term of G. Russo, term to expire January 1, 2022. 5. Mayor Hess said municipalities need to elect one or both of the programs in Governor Lamont’s Executive Orders 7S and 7W/Tax Deferment Program – Low Interest Rate Program and to notify CT OPM (Office of Policy and Management) by April 25th of their decision. The first program is a Tax Deferment Program. The program extends the last day to pay municipal taxes without interest. Normally taxes would due by the end of July. Under the program, taxpayers who are residents of Naugatuck could pay their taxes as late as October 1st without incurring any interest. Eligible taxpayers would send in a form stating 20% of their household income was reduced. Businesses need to state their income is expected to decrease by 30% from March to June. Applications must be submitted by July 1st. There are two options with this program. The board can decide to offer it to  -2- Minutes – Board of Mayor and Burgesses Special Meeting – April 16, 2020 eligible taxpayers only or to all taxpayers. The second program is a Low Interest Rate Program. Instead of extending the grace period with no interest, it allows people to pay their taxes later but have the interest reduced for a ninety day period. Under this program, taxpayers are entitled to an interest rate reduction from 18% a year to 3% a year for a ninety day period. After the period expires under either program, the interest rate returns automatically back to 18% a year. There is assistance for landlords if they experience a decline in revenue and they offer relief to their tenants or lessees. In addition, these rules do not apply to escrow accounts. It is intended to help taxpayers not banks or escrow companies. Any liens in place remain valid. The borough is not allowed to do any tax auctions during this time. Mayor Hess said the board needs to choose one or both of these programs and let OPM know of their decision. Motion by Deputy Mayor Taf Jackson and seconded by Burgess Neth that the Board of Mayor and Burgesses approve the Borough of Naugatuck to enter into the Tax Deferment Program only for Eligible Taxpayers only and notify OPM of the decision immediately. ROLL CALL VOTE: FOR OPPOSE ABSTAIN Mayor N.W. Hess C. Herb None None L. Taf Jackson C. Marenghi M. Bronko J. Mizeski F. Dambowsky R. Neth J. DeOliveira R. Vitale Motion carried 10-0-0 6. Mayor Hess led a discussion on the upcoming adoption of the 2020-2021 Budget. He said the borough continues to operate at 100% during this pandemic. Health insurance is the biggest expense in the upcoming budget. He thinks the tax collection rate for this year will not be a problem but next year and the year after could be a problem. Mayor Hess said he has not used Contingency in the four years since he has been mayor. He said we may need to look at using it this year. We have a healthy Fund Balance. The borough board previously voted the Fund Balance could not go below eight percent. The mayor said he will bring forward several options for the budget the night of the presentation of the budget to the Joint Boards. Burgesses expressed their concerns with a tax increase this year. 7. VOTED: Unanimously on a motion by Deputy Mayor Taf Jackson and seconded by Burgess Neth to adjourn the special meeting at 8:19 p.m. A digital recording of this meeting is available in the office of the Borough Clerk for further review. Attest: Nancy K. DiMeo Borough Clerk