2.1.17 Minutes from Public Hearing
Hollis Select Board meeting was opened at 7 pm by Chairperson River Payne. In attendance were Select Board members Mike Seely, Sr. and River Payne. Roger Hicks was absent from the meeting.
The Select Board suspended the Select Board meeting and opened the Public Hearing at 7:04 p.m.
Mike Seely read the guidelines for this public hearing and introduced Shana Cook Miller, Attorney and TIF Consultant with the Town’s attorney, Bernstein Shur, and Debra Stitson was introduced as Hollis’ Town Assessor.
Abbreviations used in notes:
DECD- Department of Economic & Community Development
TIF- Tax Increment Financing in Maine
Deb- Debra Stitson, Hollis Assessor
Shana- Shana Cook Miller, Attorney and TIF consultant
Mike- Mike Seely Hollis Select Board
River - River Payne Chairperson Hollis Select Board
LRP- Long Range Planning Committee
Comp Plan- Hollis Comprehensive Plan
BC – Hollis Budget Committee
Smitty- Laura Santini Smith – at DECD –she reviews TIF.
April 1st each year is the Assessment date that the state uses to value towns.
All municipal tax bills are also based on this April 1st assessment date.
Shana stated the original Hollis TIF district was designated and the related credit enhancement agreement was signed in 1999 for a duration of 25 years. A TIF (Tax Increment Financing District) requested by municipalities is issued as a tool for economic development and our TIF is structured to appropriate municipal funds. 30 years is the maximum length for a TIF (in Maine). Hollis is currently at 85% of the captured value is eligible for TIF revenues. The income to Town of Hollis will begin to go down after this year from the TIF district’s captured assessment. TIF revenue creates a tax benefit for the town by sheltering value from the state’s assessment value of Hollis every April 1st; school funding formulas, county taxes, municipal revenue sharing, and other funds. The TIF captured funds are invisible to the state calculations in calculating the revenue funding, municipal subsidies or county tax assessment to municipalities. 88 cents on every tax dollar is currently lost to tax shifts. With this TIF year, the Town of Hollis keeps every dollar instead of only 12 cents of each dollar into municipal funding (general fund). The proposed TIF amendment has no changes to the 1999 original contract document, except that it will extend the length of the TIF by 5 years and extend the TIF revenues at the 85% tax shelter with an estimated potential benefit to the town of 1.6 million dollars. Poland Spring Company will receive no financial benefit from this TIF amendment.
The TIF amendment package goes to DECD (Department of Economic & Community Development) for review, after town meeting approval, in order to ensure that it meets all the statutory compliance in Maine. The amendment is then considered adopted once the Hollis voters have approved the TIF amendment. Then the Select Board completes and signs the application and it is resubmitted to DECD and approved by them. When the DECD signs off, the amendment is considered adopted.
Questions from the floor
Q. Richard Marion- Pine Crest Drive –I want to know if (Hollis) taxes will continue to go up?
A. Deb Stitson, Hollis Assessor. The mill rate has been $11.95 the same for the last two years. The shifts keep our funds protected. Your taxes may have gone up if you made improvements or added a garage to your property. Hollis property taxes should have gone down as the Homestead reimbursement was increased last year (April 1, 2016 assessment date) by $5,000. The Homestead is expected to increase for the 2017-2018 tax year. As of April 1, 2017. The Assessor encouraged all residents to apply for the Homestead Exemption and Veteran’s Exemption, the paperwork is in her office and available on –line (www.hollismaine.org)
Q. Joe Ponzetti, Salmon Falls Road- Thanks, for this benefit to the taxpayers, my question is amending the development plan are there any amendments to project costs? Can interpretations of items be added? We have a new rescue and new fire truck a purchased by TIF funds. Can the Community Building improvement or other items be included to utilize TIF funds?
A. Mike Seely – Hollis Select Board - Select board is guided by specific requirements of the approved TIF from DECD, it spells out a road map on what can be spent using TIF funds. The Comp plan has a 5, 10, 15 year road map to follow as well.
A. Shana– The town can propose to change the project list through a statutory amendment to the development program.
Q. Kathy Harriman, Waterboro Road- is the entire town cordoned off or it is a special TIF district?
A. Deb -if you look at the Hollis’ new tax maps it is map 26, Lot TIF 1 & TIF 2.
Q. Becky Bowley, Timber Lane –What’s the rush? Why make changes now? Usually the town has two public hearings so at the first public hearing the voters can make or suggest changes. Why the Feb 14 th vote and tonight is the public hearing?
A. Shana - April 1, 2017 the Maine Tax assessment date, the fiscal year based on April 1 will include a decrease in the TIF captured assessed value by 10 %. Your TIF district currently sheltered at 85%.
Q. Becky Bowley, Timber Lane- Our current TIF sets aside 1 million dollars for public sewer and water. That was put in the program because at that time MSAD6 was expecting public sewer to be expended to BEHS (Bonny Eagle High School) & BEMS (Bonny Eagle Middle School) and that Poland Spring would pay to expend the sewer & water to their plant. That million dollar public sewer and water is probably not going to happen. Can we spend that million dollars on infrastructure like roads?
A. Shana- The costs are all estimates, a project list may or may not be completed. Actual TIF revenues are projected and often projects listed do not get completed. The Select Board can speak to this project list. We do not recommend removing projects from TIF list as items listed do not have to be completed.
Q. Becky Bowley- There is a revolving door in the Hollis Select Board office. We have new selectmen every year with 3 year terms. The New TIF states the SB have total authority to spend the TIF revenue which accounts to million so of dollars. We should take care of current infrastructure and not on new. It is too late to make changes to this document?
A. Shana –If we changed the document now, residents could potentially have a due process claim as they were not given notice of changes made tonight. In 1999, the Select Board was given the authority to make decisions within the limits of the TIF. This could be amended at a later date if the SB choose to do something different. The town will lose 10% if no changes are made this year to extend the life of the district and not lose the captured value. Administration can be done at a later time.
Q. Ken Davis, Pleasant Hill Road – I have lived in town since July 4, 1973. Can you tell me exactly where the TIF district is?
A. Deb- Half of district is on the Poland Spring plant side of the road (Killick Pond Road) and the other half is on the other side of the road from the plant (Poland Spring).
Q. Ken Davis how many acres?
A. Debra Stitson- Approximately 250 acres.
Q. Cynthia Stout- High Street- What is the end date and how is money spent?
A. Mike - A new town complex could be a part of it depending on what is put into the complex. New ambulance was paid for TIF monies, the new fire truck both of these items went out to the townspeople for votes. I have been a Select Board member for about 7 months and perhaps some TIF projects have been completed without town voter approval. We have only June & Nov elections to present articles to the voters. Each election have additional costs.
Q . Cynthia Stout- Are you going to wait to bring it to the voters can it wait? Emergencies?
A. Mike - The Select Board is voted in by the town. The Board historically has not spent money recklessly. We have the right to exercise our options.
Q. Rita Anderson, Cape Road- Why was this done in such hurry? Why did we not have two hearings and have time to make amendments? 2. What is the latest date that this may be submitted If we change this document tonight?
A.Shana – The amendment as drafted must move forward on the schedule that is planned in order to lock in the 85 % with time for the DECD to approve this document as it is time sensitive to April 1st assessments/tax year.
C. Rita Anderson- Why would we give blanket permission for 11 million in the future? Consider to at least put this out to vote.
Q. Dana Gray- Liberty Lane - Smart Shopper had a false statement about it must be submitted by March 1st. I spoke with Smitty (DECD) who would be very accommodative. This amendment was taken away from the LRP (Long Range Planning Committee) on Nov 16th 2016, The Budget Committee and Long Range Planning committee would have had time to make comments.
A. Shana- Smitty is Laura Santini-Smith and she reviews the TIF amendments at the state DECD office for statutory requirements. We selected that date in effort to get this amendment approved in time for the next fiscal year and before Hollis annual town meeting in June. Applications can take more than a year before they are acted on at the state level once they reach Smitty’s desk. This is an effort to utilize funds in an efficient way.
Q. Dana Gray- Liberty Lane - 100 people have responded to me that they all want this. We have 8 different Select Board member with difficulty on clarification on the warrant. This question is for Martha. Can we change that poison pill? DECD Smitty said we could.
A. Shana- Town meeting for a referrendum requires a special notice period (Martha 45 days a warrant must be signed). To give notice for the referendum. This is to capture the 85% rate the actual project list could be changed at a later time.
Q. Len Van Gaasbeek Jr- Walden Lane- I have lived in town for a long time. TIF file copy agreement Expenditure on PS. (Len read information from off some document but it was not audible in person or on the tape.) The Budget Committee should be given a chance to make an approval. We used to have twelve budget committee members and now it is down to 8 members. Last twenty years BC has given recommendations. We have BC members who been on that committee for 22 years, 20 years. Rita I think was a member back with they used horses to plow snow with. We have Select Board members with 1 year, 2 year experience and 7 months. Can we take a broader look and can we amend this TIF quickly so the BC give a recommendation?
(Town Clerk note: The Budget Committee Ordinance calls for a seven member board)
Q. Meg Gardner- Many people object to this. Amendment says why so many object to it. Any and all authority to expend revenues without the need for town meeting approval. Becky Bowley pointed out that the list is incomplete. Dana was right, we were talking 2-3 years. Our comp plan is year and years old. Several million dollars are not going to come up. Wanting to amend the TIF I agree with Dana 100% but what we really want to change is this amendment. Any ratified town appropriations process. Still have to look at the development project list. SB now then to certain amounts to spend. We do not know who are the Select Board are to give to the complete authority and work with DECD. We are not stupid. We can figure out a better plan that this.
A. Shana- Bonds to pay for TIF revenues must go to town meeting approval – major capital projects paid for with TIF revenues, if bonds are used, would require town meeting approval anyway. There is a time factor for making additional changes while still getting the 85% approved this year. Another amendment could come on the heels of this one.
Q. Ken Davis- I have a recommendation here and now. Would the Select Board do a straw poll to see how many are in favor of this one acid paragraph?
A. Shana- You can ask for show of hands. However, this is a referendum vote and will have no bearing on the show of hands tonight. No action will be taken here.
Q. Dana Gray – With all due respect, they took it out of the hands of the Long Range Planning Committee on Nov. 16th. There was already an amendment in motion. There was opportunity to collaborate on this.
Q. Rene Lewis, 18 Usher Mill Road- Which SB members would support another amendment?
C. River Payne – This change would not have happened without this conflict. We are always working for transparency.
Q. Rene Lewis - 85 % level is beneficial. How will it be represented moving forward – understanding your dedication?
A. Mike Seely - If a project that needs immediate attention, do we wait to bring items to the town to vote. Will the whole town do without Fire Rescue equipment? We only meet twice a year for town meeting or special town meetings. There is cost involved in town meeting votes.
Q. Rene Lewis - Will one of you step forward to improve this uncomfortable situation?
Q. Jim Devou, Green Acres- Owner of the Vac Shack- If the amendment was to fail, will we see some of those changes changes be made now?
Q. Russ Garvin- For emergency situations, town should have established an emergency budget. Pull that many if you need to money to buy an ambulance you would have that cash flow.
Q. Rande Gray- 1 Liberty Lane- I was on the phone with Smitty also at DECD. My question is, if you were in such a hurry, why would you take the time to change the paragraph? You kept it very quiet. We talked with Smitty about an hour and she said it is not mandatory that this be presented by March 1st. We have a 45 day window to make changes to the amendment and bring it back to DECD.
Q. Shana -Asked when did the Grays speak with Smitty?
A. Rande Gray- In the last few weeks. Dana stated January 14th. Smitty indicated that the DECD is very accommodating.
A. Shana- To answer your first question, the language was added due to update in DECD policy, which is to spell out the appropriation process. This amendment does not change the process that has been in place since 1999. In regards to timing and process, Smitty has been directed by her superiors not to review new TIF applications or amendments, since Nov of 2016. She had 24 on her desk pending, so timing is an issue.
Q. Rande Gray-If this does pass, can we amend it? Who would direct the change to not give Select Board authority?
A. Shana- Select Board is in charge in sending changes to the TIF to town meeting. There are legal avenues for voters, but general speaking it would go out to town vote.
Q. Jack Rogla, Deerwander Road – I have listened a big negative BC & LRP. Why are you reinventing the wheel?
Q. Becky Bowley – I would hope the Select Board and Budget Committee will work with us. What does the town stand to lose?
A. Deb- I don’t have the exact numbers.
C. Becky Bowley- My calculation is estimated $1.6 million. Whether we like the wording or not, the town is standing to lose a lot of money.
A. Deb- I can recalculate that out. One of my concerns was about the school budget. I spoke to Bill Brockman from MSAD 6 , if the town is at 75 % over 3 years with no changes to our evaluation then the tax shift would increase for Hollis- 1st year would go up $100,000, the next year $200,000. The tax shift means taxes go up.
C. Becky Bowley- I am not happy with the paragraph but I would hate to see the town lose 1.658,000 extra dollars. We need to build trust and support.
C. Deb Stitson - Voting this down does not change the authority the Select Board has. I am not a resident. I have no dog in this fight but this is in the best financial interest of the town of Hollis. Don’t miss this opportunity to lock in the CV 85%.
Q. Becky – Will the SB work with the people of the town?
A. Both members of SB answered yes.
Q: Jim Devou – If we vote for this, we are giving up control to the SB.
C. Chris Young, Shaw Ln. – Gave an example of an emergency situation where the SB had to use TIF funds in an emergency. The generator at the fire station broke down recently. The TIF funds paid for a new generator. The Select Board authorized the expenditure. If we waited for town vote then the fire station would be without a generator.
C. SB - The TIF was written in 1999 and the Select Board already have the authority to act. C.
C. Paul Mattor – Simple, I like simple. It is wrong to say it is flawed, to say it doesn’t change it. It is wrongheaded to challenge the process and the timing now. We need to respect the leadership. If I found a $20 bill on the street, I would reach down and pick it up.
Audience applause.
Q. Rita Anderson- This amendment is necessary. We do not want to lose that million dollar. If the language comes from the state, why it is the state wants to cram it down our throats. We did not have a question. We have special town meetings. When we have an emergency, we meet the emergency. I ‘ve been in Hollis since I was one month old and when I got married I moved across the street. I have not gone very far. We are going to have to pass this with that paragraph. Can we get the Select Board to change this? Do we need a petition to change it?
Shana - the SB calls a town meeting or special town meeting, or you may have a citizen petition as an option.
Q. Rita – Can the language be changed? Change it for budget committee to give a recommendation. Os there other language the state will support? Does this needs to go back to the state?
A. Shana- The town has the authority to vote on it.
C. Rita- SB could take it to town meeting approval future SB came to town for town approval. I do not like things thrown at me from the state. I have been on budget committee for a long while.
C. Martha Huff- Hollis town clerk. I apologize for not answering earlier it is difficult to listen and be writing and try to answer a question from the floor. Yes it takes 45 day to call a special town meeting by warrant. However there are other factors that come into play. Public hearings, ballot printing they all take extra time. In November or in June. I consider myself to be very proactive in getting warrants signed to get ballots ordered. The memory sticks in the voting machines need to be sent to Augusta or out west to be formatted. It makes no difference the ballot still take time to be printed. Absentee ballots need to be available 30 day before a town meeting secret ballot vote. It actually take more than 45 day to plan and hold a special town meeting. We have voters began completing absentee ballots after January 14th. They have already voted. The warrant cannot be changed now.
8:30pm the Hollis Select Board closed the public hearing and took a short break prior to the Select Board meeting.
Select Board meeting reopened. Reconvened at 8:50 p.m.
The emergency medical subscription are still available-25 people have signed up so far.
We have 29 foreclosures on properties pending.
Town Barn – needs repairs. $10,000 was approved for painting. The problem is it is lead paint, cannot be repaired. Town is looking for estimates on siding the building.
Anyone interested in volunteering for Hollis Community Day? Please contact the Select Board.
Dog Licenses: Late fees begin February 1st. See Town Clerk to license your dogs.
Town Clerk Martha huff- Absentee ballots are now available for Feb 14, 2017 special town meeting.
Meeting closed at 9:00pm.
Submitted by Martha Huff and Bennet Flinner 2.22.17