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Clerk-Treasurer says Bakertilly analysis shows ~$43,000 tax-cap credit increase tied to proposed fire engine financing
Summary
Clerk-Treasurer Drew Cooper reported a Bakertilly analysis saying proposed fire engine financing could increase tax-cap credits about $43,000—about 80% falling on the General Fund—and noted the Fire Chief agreed to a $25,000 annual transfer and would not object to forgiving $124,000 in hydrant-fee debt; the forgiveness resolution was tabled.
At the Middletown Town Council’s May 21 meeting, Clerk-Treasurer Drew Cooper reported the results of a Bakertilly tax-cap credit analysis tied to a proposed fire engine purchase and financing plan.
According to Cooper, the analysis indicates the financing would lead to an approximately $43,000 increase in tax-cap credits taken from Middletown’s property tax levy; roughly 80% of that impact would fall on the General Fund. Cooper presented those figures during discussion of the proposed purchase and related financing.
Cooper said the Fire Chief agreed to transfer $25,000 annually from the Fire LIT Public Safety fund to the General Fund to offset some of the levy impact. Cooper also said the Fire Chief would not object to the Town Council forgiving $124,000 in unpaid hydrant-fee debt owed to the Water Utility, a proposal the clerk presented as RESOLUTION 2019-05-21-01. The council tabled the resolution for consideration at the next meeting.
The matter will return to the council for further action; the clerk identified follow-up steps including detailed interfund transfer terms and bringing the resolution back for a vote.
