WESTFIELD – There was sound Thursday night at the City Council session, until they turned it off because of feedback, and there was fury, some directed at other council members, some at other city officials, but in the end it signified nothing.
Most of the fury came out during floor discussion of motions brought by At-large Councilor David A. Flaherty who withdrew four motions related to the December 5 vote to cut the tax levy and 2014 budget by $1.7 million.
Flaherty had asked the council members to allow him to withdraw motions to reconsider those levy votes because of the confusion the voting process raised. The council members were attempting to reduce the tax levy, the amount of money that must be raised through property and excise taxes. The council’s desire was to lower a tax increase, now at 3.4 percent, to less than 1 percent.
The Department of Revenue was requested by city law and financial officials to review that levy reduction vote and determine if the council was acting within its scope of authority. The DOR ruled that the council has to authority to cut the levy during its June review of the budget. Any budget cut reduces the amount of money that would need to be raised through taxes.
The DOR also ruled that the council does not have the right to cut the levy in November or December when it is setting shift factor that is used to determine a tax increase and how that tax burden is applied to residential property, which account for about 80 percent of the total property assessed value in the city and the commercial, industrial and personal property which comprises the remaining 20 percent of total assessed value.
Mayor Daniel M. Knapik requested a 2 percent increase, below the 2 ½ percent allowed under proposition 2 ½, but the calculations resulted in a tax increase to all classes of property of 3.4 percent.
Flaherty withdrew his motions based upon a conversation he had with a DOR supervisor.
“The city’s tax rate was set by the DOR last Friday, so we can vote on these motions to reconsider and rescind, but it will make no difference because we can’t change the rate,” Flaherty said.
Those votes, while serving no practical purpose, would reflect poorly on the council’s decision making process which would result in greater scrutiny by the DOR, Flaherty said.
Flaherty did say that he would bring out a motion in January, after the new City Council is seated, requesting that Knapik submit a free cash appropriation of $1.7 million to be applied to reduce the property tax rate.
Free cash, which has yet to be certified by the DOR, is estimated at $2.8 million. Knapik has promised to refund $1,245,368 to the stabilization account. Money used to covered a shortfall in project revenue and to reduce the tax increase from 2 ½ percent to 2 percent.
Flaherty’s request of another $1.7 million would empty the free cash account used to fund capital purchases and projects, such as the on-going senior center design and engineering work .
The City Council did approve Flaherty’s motions for open meeting law and public record law training, as well as training in council procedures for handling motions, resolutions, orders and ordinances in light of the fact that six new Council members will be seated at the next session. Several long-time council members agreed to support the training motion as long as attendance is voluntary.
