City officials said they’re not sure exactly where they’ll get the money to pay back ESPN the $890,000 Bristol owes for a tax mistake a few years ago.
But city Comptroller Glenn Klocko said it’s possible that excess revenues from the conveyance tax or other charges could cover the tab.
Prodded by city Councilor Cliff Block, Klocko said the city could also perhaps take the money out of its $17 million rainy day fund.
Klocko said that ESPN, which made an error in an inventory list that caused the city to collect too much in taxes from the sports giant, agreed to receive the reimbursement in two annual installments in order to minimize the impact on Bristol’s finances.
The certificate of correction requiring the repayment was signed by city Assessor Rich Lasky in early July, Klocko said, after auditors approved the plan.
That put the first payment into the current fiscal year and allowed the city to end the previous fiscal year at the end of June with a small surplus.
“We managed our process with the cooperation of ESPN,” Klocko said.
It isn’t clear why the problem didn’t come to public attention earlier. City councilors and the Board of Finance were told of the money due but at least some said it was downplayed to such a degree that they didn’t realize the magnitude of the tax refund the city would have to make.
City Councilor Ken Cockayne, who took office in November, said he was unhappy that nobody told him.
“I don’t think I should have to read about it in The Bristol Press,” Cockayne said.
When the situation came to the city’s attention in late spring, Klocko said, former Mayor William Stortz told him and Lasky to “handle it.”
He said they did, while keeping the mayor and finance officials informed of their decisions.
Klocko said that he suspects the city will have enough extra cash this year to pay ESPN without dipping into the rainy day fund or hitting taxpayers for it.
Block said the city could, if need be, borrow the money from the rainy day fund and then make a commitment to restore the funds over the next four or five years.
“We basically want to not effect taxes,” Block said.
Mayor Art Ward said the city is lucky that ESPN proved a good corporate citizen.
“We’re very appreciative” of its willingness to ease the fiscal crunch on the city, Ward said.
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Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
15 comments:
The answer is obvious. The money will ultimately come from the taxpayers whether it is from the Rainy Day Fund, redirected conveyance taxes, money left over in the budget or any other source of city revenue. After all, unless I am mistaken (which is quite possible as I have known a few accountants who were magicians) any money paid out by the City for this will mean less funds for another program which will have to be made up by the taxpayer. Of course the money should not have been collected in the first place but that was ESPN's screw-up.
Take it from the plush retirement fund instead of passing the gifts to those that have retired .
"but that was ESPN's screw-up"
I don't think so. It was the city's "screw up".
But you are right. The tax payers will be forced to cough up the money. The city will not cut the budget (the only other alternative).
Cut a couple of jobs at the DPW or some other no work, high paying job in this town. Tighten the belt City Hall Everyone else has to. the city new moto should be Money in, Nothing out..
To Mr. 3:54 pm: Why do you say it was the City's screw-up? ESPN admitted that it included assets on the list that it should not have. Do you expect the tax collector to go into every office building in Bristol and personally look at everything? Do you realize how many employees that would take? Get real.
With all due respect to the Comptroller and my failing memory, as a member of the BOF, I don't recall being informed that ESPN was over-taxed in the amount of $890,000 by any city official.
If I were informed and I fail to remember, then shame on me. If ESPN is amendable to receiving payments over the next two years, then I will suggest that credits be given on their current tax liabilities over the next two fiscal years to cover these tax rebates.
This would preclude the use of conveyance tax revenues (which will be on the light side in the next two years), rainy day funds or possible budget surpluses that could also be minimal in the next two years.
Donald R. Soucy
BOF Commissioner
Klocko said that tax credits might be used.
I'm pretty sure the issue came up at a finance board meeting that I had to leave early to go cover something else.
I'm sure our largest taxpayer is ecstatic about having their name tossed around like this.
An error was made, nothing dishonest, is being addressed and yet some people can't seem to get enough of the sensational.
It was assigned to highly paid professionals who worked it out, it will be brought before the appropriate bodies to be acted on.
Lets move on.
Why didn't Klocko tell Cockayne about this when Cockayne met with him during the campaign?
The City Council and the Board of Finance were never told - they read about it in the paper last week, same as everyone else. Only one elected official in the entire city knew - Mayor Stortz, and he only told one other person: Rich Miczenkowski.
I wasn't there: most people weren't, but by Klackos own admission, he was told to handle it. Guess he didn't.
And Mizenkokski apparently was aware: is he not chair of the Board of Finance? Did he tell his board?
And Cockayne wasn't on the council, but apparently did meet with Klacko who I guess didn't tell him.
Certainly certain Council members are not going to step up and defend anybody, especially stortz, certainly at their expense.
A clear case of I said he said.
Plan to pay it back as agreed and lets move on.
I'm not sure who knew and who did not. But Ward and Nicastro each told them dimly remembered being told.
This should be made up by taking that amount out of Klockos "feel good fund".
That is where it went when it contributed to a surplus, that is where it should come from to resolve the issue.
Very simple!
SOMEONE SCREWED UP. ESPN ALWAYS GETS WHATEVER THEY WANT IF THEY EVER LEFT BRISTOL THE WHOLE TOWN WOULD BE DEAD WORSE THEN IT IS KNOW. ESPN CONTROLS US WE DON'T CONTROLS THEM
"Dimly"???
Thats quite a concession for them.
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