City Council

Approved by City Council & WPCA March 17, 2025 MINUTES Vote: Unanimous Vol. 27, Page 490 CITY COUNCIL BOARD OF FINANCE Approved by the Board of Finance SPECIAL MEETING March 18, 2025 LOCATION: ZOOM Vote: Unanimous March 5, 2025 A SPECIAL JOINT MEETING of the City Council and the Board of Finance was held on Wednesday, March 5, 2025. Attendance was by Zoom. Present were Mayor Carbone, Corporation Counsel Michael Magistrali, Comptroller Olivia DeRosa, Deputy Comptroller and Manager of Budgets and Planning Erika Johnson, Assessor Stacie Maldonado, Councilors Anne Ruwet, Drake Waldron, Molly Spino, David Oliver, and Board of Finance Members Laurene Pesce, James Wright, Wendy Traub, Chris Beyus, and Deborah Iannacito. Councilors Paul Cavagnero and Stephen Ivain were in the Mayor's Office. Board of Finance Member Christopher Anderson was absent. Mayor Carbone called the meeting to order at 3:05 p.m. Resolution #143-262 Connecticut Municipal Redevelopment Authority On a motion by Councilor Ivain, seconded by Councilor Cavagnero, the Council voted unanimously to adopt Resolution #143-262, authorizing the Mayor to opt in to membership in the Connecticut Municipal Redevelopment Authority (MRDA) as a member municipality. Mayor Carbone explained at Monday’s Council meeting that the Council voted to join the MRDA but also needs a resolution for the application. *See addendum* Councilor Oliver joined at 3:09 p.m. Discussion on the Changes Affecting Assessments & 2024 Grand List Discuss the immediate adoption of HB 7067 by the General Assembly on Monday, February 24, 2025, which includes authorization to adopt a modified schedule for Grand List Adjustments, tax appeals, and Budget and Tax Levy changes, as explained in the Assessors memo dated February 27, 2025. Ms. Maldonado briefed the Boards on House Bill 7067, which impacts motor vehicle assessments and veterans’ disability exemptions. She explained that this is the first year assessments will use a depreciation scale based on the MSRP value. She said the State is presenting an option to adopt a modified depreciation schedule for Grand List adjustments. This implementation could add $10 million to the Motor Vehicle Grand List. She is concerned that last year's real estate revaluation reset property values, and shifting the 15% loss from the Motor Vehicle Grand List to real estate would be detrimental. Mrs. Traub requested a recap of the City Council’s Monday night discussions. Mayor Carbone responded that the primary concern was the impact on taxpayers. The key question was whether motor vehicle owners would see an increase in taxes. Even with the 90% depreciation option, most owners would still see a reduction in taxes. However, leaving the rate at 85% will result in a 15% tax revenue loss, or adopting 90% would still result in a loss, which could shift the tax burden to personal property and real estate. Councilor Ruwet asked for input from the Budget Subcommittee and the Board of Finance regarding potential changes to motor vehicle taxation. She emphasized the importance of allowing the Board of Finance to weigh in on the decision. Although she supported adopting the modified depreciation schedule, she felt they had to wait for the Governor to sign the bill. Mayor Carbone added that state legislators acknowledged the significant reduction in Grand Lists across cities and towns. A 15% reduction for Torrington amounts to $40 million. The sliding depreciation scale could help recover some of these losses. Mrs. Traub acknowledged that the measure would benefit the Grand List but criticized the emergency certification process, which bypasses public hearings and limits taxpayer input. From a Board of Finance perspective, she emphasized that the City needs this revenue and must act quickly. Mr. Wright asked whether the tax burden would shift to businesses with vehicle fleets. Ms. Maldonado explained that with the new system at 85% depreciation, commercial accounts would not be impacted, ensuring fairness for all vehicle owners. The allowable 5% adjustment would ultimately lead to lower costs for fleet owners. Mayor Carbone explained that the sliding scale will cause a lower depreciation rate every year the vehicle ages. Ms. Maldonado added that this long-term predictability benefits businesses, which are accustomed to depreciation models and can better plan for future values. Mr. Beyus expressed frustration, stating that the situation ultimately comes down to maintaining revenue for the City. Mayor Carbone noted that the implementation timeline will impact when the Board of Assessment Appeals can meet, delaying processes that taxpayers rely on and possibly affecting the final budget adoption. Modified Motor Vehicle Depreciation Schedule On a motion by Councilor Ruwet, seconded by Councilor Ivain, the Council voted unanimously to adopt the Modified Motor Vehicle Depreciation Schedule, as explained in the Assessors memo dated February 27, 2025. Adjournment On a motion by Councilor Ivain, seconded by Councilor Oliver, the Boards voted unanimously to adjourn at 3:30 p.m. Respectfully submitted by ATTEST: Heather Abraham, Asst. City Clerk CAROL L. ANDERSON, CITY CLERK MINUTES Vol. 27, Page 491 CITY COUNCIL BOARD OF FINANCE SPECIAL MEETING LOCATION: ZOOM March 5, 2025 Addendum: MINUTES Vol. 27, Page 492 CITY COUNCIL BOARD OF FINANCE SPECIAL MEETING LOCATION: ZOOM March 5, 2025