SERVICES TO SENIORS COMMITTEE

The Services to Seniors Committee Meeting was held on April 4, 2007 at 1:08 p.m. with co-chair Russell presiding. Members present were Mr. Hicks, Mr. Hare, Dr. Matthews, Ms. Pohlmann, and Mr. Stephens.

AGENDA ADDITIONS/ DELETIONS

Approval of Minutes – April 4, 2007

Mr. Stephens moved for approval of the Minutes of the Regular Services to Seniors Committee Meeting of March 21, 2007, seconded by Mr. Hicks and unanimously carried.

Presentation-

Mr. Donald Capuano, Tax Assessor for the City of Dover, indicated there are approximately 385 senior citizens enrolled in the Senior Citizen Exemption project, which includes single and married persons. The income requirements are $15,000 for a single person and $21,000 for a married couple. Mr. Capuano indicated his observation of the project is that the income limits are too low. They turn away more recipients than they keep. Many residents go out and obtain employment just to be able to get medical benefits. This additional income takes them over the income requirements. Every thing is going up in the City but the requirements remain flat. There were 385 person enrolled in the program and it only cost the city $63,525 a year. One suggestion he along with Councilman McGiffin has suggested is a deduction of $6,000 off their income for medical and drug expenses. Mr. Capuano indicated the whole area of exemptions needs to be looked at carefully. He informed the committee he has worked in five other states and Delaware is the only state that does not give exemptions for the blind, handicapped, or veterans. Mr. Capuano stated the exemptions exist everywhere in the country except here.

In response to Dr. Matthews’s question, Mr. Capuano indicated it is an option and that you would have to legislate through City council and it cost money to do these things. Right now they are charging $63,525 out of the budget to operate the changes. This would mean the 6,000 projection would go to 70,000, roughly 7,000 a year in revenue.

In response to Mr. Hare’s question, Mr. Capuano indicated the County’s rate is $18,000 for single individuals and $26,000 for married couples. Mr. Capuano stated the living expenses is going up for example the electric rates are high, oil and maintenance.

In response to Mr. Stephens question, Mr. Capuano indicted the County does not give the exemptions to the blind, handicapped or veterans.

 

Mr. Capuano stated he has seen a case where the individual missed the exemption by $97.00 and they had to dismiss the candidate. He felt the $6,000 medical exemption would help the constituents out.

In response to Mr. Hare’s question, Mr. McGiffin indicated raising the income requirements to $30,000.00 isn’t something they looked at. Mr. McGiffin indicated they were looking at an acute fix until an in-depth more comprehensive study could be completed. The $6,000 medical deduction is a Band-aid fix until a comprehensive study could be done. They felt this was something the City could do fairly easily to provide quick relief to residents who are in desperate situations. This temporary fix would help about 10% of the seniors.

Mr. Hare agreed with Mr. McGiffin and indicated back in the 90’s when he was on council the fees and services went up, the electric rates went up but nothing like this was escalated up to go with the fees and services. It this had followed the electric rate for the last 10 years the fees could possibly be at $25,000.00 by now. He agreed to put the band-aid on until City Council appoints the Commission for Services to Seniors.

In response to Mr. Stephens’s question, Mr. Capuano indicated the residents must resident in the City for approximately three years and they must show proof of medical expenses. He stated the band-aid fix would help about 10% of the seniors.

In response to Mr. Capuano’s statement Mr. Hare stated it is very hard to get an 80 year old residents to keep up with medical records and that it was too much for any senior. Why make it hard for them. This seems like it is a hardship for them. He recommend raise the income limits. Mr. Hicks, Ms. Matthews and Mr. Stephens concurred.

In response to Mr. McNulty’s question, Mr. McGiffin indicated the last study conducted on the exemptions was done in 1985. Mr. McGiffin made a correction the correct year was May 2005.

Mr. Capuano indicated we are going to be the riches city in the State of Delaware next year due to multi-million dollars investments going on every month in the city.

In response to Mr. Stephens’s question, Mr. Capuano indicated he is on record that he wants the $6,000 medical deduction. He indicated the committee could submit their recommendation to council.

In response to Mr. Stephens’s question, Mr. Deprima indicated the committee could make a better or different recommendation than Mr. Capuano council would have two choices to review. He stated he was the person who suggested Mr. Capuano come to this committee with the recommendation. He cleared it with Mr. McGiffin, Mr. Slavin and Ms. Russell. He thought the recommendations from the Services to Seniors committee would be beneficial and highly favorable to Council.

 

In response to Ms. Pohlmann’s question, Mr. Capuano indicated the rate would be over 100,000, which is a 40 to 50 % increase and this is not unreasonable. He also indicated we need a comprehensive study.

After tremendous discussion the committee made the following motion.

Mr. Hare made a motion that the tax exemption level be raised to match the County rate of $18,000 individual and $26,000 for married couples, have the Services to Seniors Commission formed. The commission will take a look at the recommendation within the year and come back with a permanent recommendation. Mr. Hicks seconded and unanimously carried.

In response to Mr. McNulty’s question, Mr. Capuano indicated the present $15,000 and $21,000 income limit is based on adjusted income, which does not include Social Security and Railroad pension.

The Division of Aging did not attend.

Discussion of Prioritization of Recommendations-

1). Income requirements to match the County’s income level for the Senior Citizen

      income limits.

2). Form a Service to Seniors Commission to include 9 members with a chair and vice-

     chair.

The meeting dates will be discussed on a meeting to meeting basis.

Next Meeting Dates and Times, Meeting Format, Etc.

The next meeting has been scheduled for April 23, 2007 at 7:00 p.m. at Council Chambers.

Mr. Hicks moved for adjournment, seconded by Mr. Stephens and unanimously carried.

Meeting Adjourned at 2:21 p.m.

Respectfully submitted,

Sophia R. Russell

Co-Chairs