Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Internal Transfers Tax Lien Sale topic
No spam. Unsubscribe anytime.
Council approves internal-fund transfers and sells delinquent tax liens to Tower Capital Management
Summary
City finance director reported a projected surplus; council approved transfers between internal service funds to eliminate a workers’ compensation deficit and authorized sale of 2023 delinquent tax liens to Tower Capital Management for 107.25% of face value.
City finance staff told the council June 23 that preliminary May numbers show West Haven in a positive fiscal position for fiscal year 2024–25, and the council approved transfers to rebalance internal service funds and a sale of delinquent tax liens.
Finance Director Michael Gormani said the general fund looked to be about $2 million in surplus in May; the Allentown fire department had an estimated $466,000 positive variance and the sewer fund about $232,000, though he cautioned that final figures are subject to change during the summer close-out process. Gormani said vacancy savings, overtime adjustments, and lower insurance premiums contributed to the position.
To remedy a negative balance in the workers’ compensation internal-service fund, the council approved a transfer of $2,200,000 from the medical internal-service fund (Fund 603) to the workers’ compensation fund (Fund 602). The council also approved a $346,029 transfer from the unallocated contingency account to the Town Aid Road account (14000010-52680) so budgetary expenses for state Town Aid receipts match reported revenue.
On liens, the council approved selling 2023 delinquent sewer fees and tax lien portfolios totaling $1,109,367.75 to Tower Capital Management for $1,245,796.15 (about 107.25% of principal). The tax manager reviewed three RFP responses and recommended Tower Capital for the highest purchase price and acceptable collection practices. Council members confirmed the sale follows Conn. Gen. Stat. §12-195 and the city’s advertising and solicitation process.
Council members also discussed parking-meter rate adjustments for popular beach lots; staff said the city is adjusting rates for out-of-town parkers to better reserve spaces for residents. Councilmember questions about where surplus funds would be applied elicited answers that surplus conversation will occur during July–August year-end closeout and may be directed to pension liabilities for the fire department.
The transfers and lien assignment motion passed at the council meeting and will be reflected in the FY25 year-end adjustments. City staff said the internal-service reallocation improves audit presentation and is consistent with the city’s five-year financial plan.
