Board of Finance

Approved by the Board of Finance February 18, 2025 MINUTES Vol. 7. Page 443 Vote: Unanimous BOARD OF FINANCE REGULAR MEETING CITY HALL AUDITORIUM / ZOOM January 21, 2025 A REGULAR MEETING of the Board of Finance was held on Tuesday, January 21, 2025. Attendance was in person and by Zoom. Present at City Hall were Mayor Elinor Carbone, Corporation Counsel Michael Magistrali, Deputy Comptroller and Manager of Budgets and Planning Erika Johnson, Assessor Stacie Maldonado, Treasurer Dan Farley, and Board of Finance Members Deborah Iannacito, Laurene Pesce, Wendy Traub, and Jim Wright. Board of Finance Members Chris Beyus and Christopher Anderson participated via Zoom. Mayor Carbone called the meeting to order at 5:01 p.m. beginning with the Pledge of Allegiance. OPEN TO THE PUBLIC On a motion by Mr. Wright, seconded by Mr. Beyus, the Board voted unanimously to open the meeting to the public. No one from the public wished to speak. APPROVE MEETING MINUTES On a motion by Mrs. Traub, seconded by Mr. Wright, the Board voted unanimously to accept the Regular Meeting Minutes from December 17, 2024. On a motion by Mrs. Pesce, seconded by Mrs. Iannacito, the Board voted unanimously to accept the Special Meeting Minutes from January 8, 2025. EXECUTIVE SESSION On a motion by Mr. Wright, seconded by Mrs. Pesce, the Board voted unanimously to enter into executive session pursuant to C.G.S. §200-1 (6) (B) to discuss pending tax assessment litigation, inviting Atty. Magistrali and Assessor Stacie Maldonado at 5:04 p.m. Mr. Anderson joined via Zoom at 5:14 p.m. OPEN SESSION On a motion by Mrs. Traub, seconded by Mr. Wright, the Board voted unanimously to go into an open session at 5:25 p.m. POTENTIAL VOTE On a motion by Mrs. Pesce, seconded by Mrs. Iannacito, the Board voted unanimously to accept the recommendation of the Corporation Counsel to settle pending tax assessment litigation for the Catholic Cemeteries Association, pending City Council approval. UPDATE ON REVALUATION On a motion by Mrs. Traub, seconded by Mr. Anderson, the Board voted unanimously to open the discussion on the Grand List 2024 revaluation presented by Stacie Maldonado, Assessor. Mrs. Maldonado gave the Board a detailed overview of the many working parts contributing to the City’s Grand List this year. She said there is a new legislature affecting the Motor Vehicle Grand List which will result in a 12-13% reduction on the Grand List. She also said there are new exemptions for Veterans who are permanently disabled which will have a $7.1 million effect on the Grand List. Mrs. Maldonado said that 48 Veterans have applied for this exemption so far. She provided insight into the revaluation of the City, she explained that every 10 years there is a physical evaluation of where they go inside the house, and every 5 years, it is based on the market and sales within the City. She said there was a 90% increase in residential properties with a 40% increase in commercial properties. She said these revaluations are driven by State Statute, which sets forth a timeline for the revaluations to be complete. Mrs. Maldonado told the Board that revaluations equalize inequities across the State, which means everyone would be paying their fair share. She said that since the 2019 revaluation, the commercial properties have been carrying the tax burden. Paul Kennedy, a Supervisor with eQuality Valuation Services LLC, provided the Board with a step-by-step process of how they came to the new property values. Mayor Carbone added that there has been a spike in interest in residential properties. Mrs. Pesce asked when the Motor Vehicle and Veterans legislature happened, Mrs. Maldonado said the State tried to change the Motor Vehicle legislation two years ago but had to pause it to correct language, which went back into effect this year. As for the Veterans, the legislation was supposed to impact a small percentage of Veterans, who were 100% totals disabled, however, the language is different, to include any Veteran who is disabled with a determination from the VA. CITY PERFORMANCE REPORTS On a motion by Mr. Anderson, seconded by Mr. Wright, the Board voted unanimously to accept the Performance Reports for the City. Mayor Carbone drew the Board's attention to the page where there is $275,000 put aside for any Assessment Appeals and to settle litigations.  MINUTES Vol. 7. Page 444 BOARD OF FINANCE REGULAR MEETING CITY HALL AUDITORIUM / ZOOM January 21, 2025 BOARD OF EDUCATION REPORTS On a motion by Mr. Beyus, seconded by Mr. Anderson, the Board voted unanimously to accept the Board of Education Budget Performance Reports. Mrs. Traub asked why the Board of Education (BOE) totals do not match The City’s. Ms. Johnson explained that the City performs a quarterly reconciliation process, which could account for discrepancies in the financial totals. She also clarified that the General Fund is a sub-fund posted to the General Ledger (GL) and relies on how quickly the Board of Education (BOE) updates its financial records. Mr. Beyus noted that the BOE Performance Reports do not provide a complete financial picture, leaving gaps in understanding. Mrs. Traub inquired why there were no reports on grants, prompting Mayor Carbone to remind the Board that such reports had been requested during the budget adoption process to support the Board of Finance. Mr. Beyus further expressed concern that there is no clear understanding of how the BOE is spending funds, whether from State sources or City contributions. Ms. Johnson added that the City and the BOE must determine how costs associated with ARPA funds and grants will be absorbed into their respective budgets. BUSINESS BY DEPARTMENT HEADS On a motion by Mr. Wright, seconded by Mrs. Iannacito, the Board voted unanimously to consider business by department heads. Treasurer Dan Farley told the Board they are gathering information for the bond sales. They have a bond rating call on February 3, 2025, and the Bond Sale will be on March 13, 2025. Mr. Farley said this is the end of the bond sales for roadwork. Mrs. Traub asked if the $38 million the City received expires, Mr. Farley said they have never had that issue since they used the funds. Mayor Carbone added that the City would contact Sandra Dawson to provide the answer. Mr. Anderson asked when the Audit was issued if the $40 million in BOE prepaid expenditures posted to the wrong year would negatively impact the City’s bond rating. BUSINESS BY MAYOR & MEMBERS On a motion by Mr. Wright, seconded by Mrs. Traub, the Board voted unanimously to consider business by the Mayor and members of the Board of Finance. Mr. Anderson wished everyone a Happy New Year and said he looks forward to 2025. Mr. Beyus said he would like to see earlier conversations on the mill rate, to lessen the impact on taxpayers. He also asked why the outgoing BOE Business Director, whom they are paying, was brought before the Board of City Council, Mayor Carbone said this wouldn’t be something that would come before the Boards. It is the BOE’s funds which are allocated during Budget Adoption, that they can use as they please. Mr. Beyus said he is looking forward to the upcoming budget season. Mayor Carbone said the BOE Business Director is being paid for six months. Mrs. Traub asked why we would ever offer a six-month severance package when voluntarily quitting. Mrs. Pesce said she went on the final tour of the new high school, and it was incredible. She said she is proud of Torrington for how they celebrated the old high school. Mrs. Iannacito said she attended the open house for the new high school with her daughter who will be there for the remainder of this year and said it is beautiful. She also said the Budget is very important this year, and the Board needs to take their time. Mayor Carbone told the Board the Grand List is due February 28th, not in time for the next Finance Meeting, she said they could have a Special Meeting to review the numbers. ADJOURNMENT On a motion by Mr. Anderson, seconded by Mrs. Iannacito, the Board voted unanimously to adjourn at 6:29 p.m. Respectfully submitted by ATTEST: Heather Abraham, Asst. City Clerk CAROL L. ANDERSON, CITY CLERK CAROL L. ANDERSON, CITY CLERK