Minutes of the Board of Finance meeting held on Tuesday, March 27, 2007 at 7:00 p.m. at the Old Lyme Memorial Town Hall.
Present: Regular Members: Andrew Russell, Wayne Devoe,
H.P. Garvin, III, Christopher Kerr, David Woolley
Alternate Members: Adam Burrows, Judy Read, Janet Sturges
Absent: Regular Members: Mark Diebolt
Alternate Members:
Timothy C. Griswold, ex-officio, Doris Johnson, Financial Administrator
Guests: Bonnie Reemsnyder, Selectwoman
Skip Sibley, Selectman
Mary Fiorelli, Director, Phoebe Griffin Noyes Library
David Winer, President, Board of Trustees, Phoebe Griffin Noyes Library
Stanford Brainerd, Treasurer, Phoebe Griffin Noyes Library
John Roach, Old Lyme Public Works Superintendent
Kathy Murphy, President, Lymewood Elderly Housing
Don Tapper, Representative, Lymewood Elderly Housing
Jack Alexander, Old Lyme Resident
Claire Kiernan, Lymeline Reporter
Robert Pierson, President, Old Lyme Fire Department
David Jewett, Chief, Old Lyme Fire Department
Harry Smith, Purchasing Agent, Old Lyme Fire Department
Ellis Jewett, Old Lyme Fire Department
Thomas Kahrl, Old Lyme Resident
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Mr. Russell called the meeting to order at 7:04 p.m. Mr. Russell stated that Mr. Diebolt will not be attending this evenings meeting. Therefore, Mr. Woolley, seconded by Mr. Kerr to have Mrs. Sturges vote for Mr. Diebolt in his absence, made a motion. Motion carried.
52-640 Old Lyme Phoebe Griffin Noyes Library
52-640-537-000 Phoebe Griffin Noyes Library Association
Mrs. Sturges and Ms. Read met with the library officials and reiterated that the usage of the library has increased over the past year. The Library initially requested $295,750 (an increase of $85,725 or 41%). Since then, the Library Board reviewed the individual line items and eliminated approximately $27,000 worth of expenses.
Board of Finance Meeting March 27, 2007
Ms. Fiorelli highlighted the changes recently made to their budget, which included an increase in building maintenance, insurance, liability, property and workman’s compensation. Decreases included payroll services and pension line due to an employee retiring. Ms. Fiorelli stated that the overall increase over last year’s budget equals 8.6%. Mr. Winer detailed the various fund-raiser events the Library has been aggressively pursuing. The Library established an agreement with the Friends in 2003 for an annual pledge to be determined each January. The pledge represents their anticipated income from Phoebe’s book cellar and the Book Worm Ball. These funds go directly for various expense lines that are marked with an “F” in bold for Friends. The
pledge is $30,000 with supplemental funds negotiated later in the fiscal year. The Library used Marilyn Dunphy for fundraising. So far, she has secured $200,000 in pledges and donations against a goal of $1,000,000.
Mr. Devoe questioned why Grants are listed as both income and expense. Ms. Fiorelli stated that the income side is what they have applied for from Foundations or the State or any other educational resources in the next fiscal year. The expenditures side are expenses relating to Grant applications, such as printing, book purchasing, etc.
A question was raised about the increase in the payroll line. Ms. Fiorelli and Mr. Winer stated that the increase includes a 3% cost of living increase for salaries and wages. Also included is the restoration of a part time assistant for young adult services and an increase of 4 hours weekly for the circulation supervisor. The library employs 13 staff; 4 full time, 9 part time. The savings by utilizing volunteer staff in the circulation department is approximately $20,000 in wages during the past fiscal year. However, there is a $10,000 variance and additional information is needed.
After discussion, it was decided to table postpone voting at this time until additional information on payroll is provided.
51-580-537-002 Lymewood
Mr. Woolley stated that he met with Ms. Murphy and Mr. Tapper to discuss the tax abatement request. Mr. Woolley stated that Lymewood is a non-profit 501(c)(3) organization, and the current real estate tax payment of $21,000 is among their largest expenses. The rents have increased four times in the last three years due to escalating costs. Current rents are as high as $623 per month.
Board of Finance Meeting March 27, 2007
The organization has recently completed a rehab the heating and lighting in of all the buildings and some improvements of the grounds. In order to make these necessary repairs, including meeting certain ADA codes, Lymewood had to re-mortgage the property to obtain the required funds. It is noted that future Federal subsidies are not guaranteed and Lymewood is on a year-to-year approval cycle. Mr. Woolley reiterated that the abatement was initially granted in June 1983 upon the opening of Lymewood and extended until 1994 when Lymewood requested that the tax abatement cease. Lymewood has received a $3,000 grant each year from the town since the abatement ceased 13 years ago. Mr. Griswold stated that the tax abatement was stopped because it benefited the Federal government and Lymewood felt a
direct subsidy would benefit the residents more.
There was considerable discussion about the benefits of tax abatement versus a direct contribution. Ms. Murphy is requesting that the Town re-instate the 70% tax abatement for the Lymewood Elderly Housing property.
A motion was made by Mr. Devoe made a motion to support 100% tax abatement of Lymewood with the motion seconded by Mr. Woolley, subject to review by the Town Attorney. Motion carried. Mrs. Sturges, seconded by Mr. Kerr, made a motion that Lymewood line would decrease to $0. Motion carried.
51-580 Senior Citizens
Lymes’ Senior Center
Mr. Woolley met with Mr. Griswold and the Senior Center Treasurer, William Paradis to discuss the various expenses relating to the Senior Center. Included in the FY08 budget is the Senior Center Director’s compensation of $11,558 and a new “emergency” line item of $1,500. There was considerable discussion about the towns being responsible for the Director’s compensation. For Old Lyme, it might cause the combined position of Social Services Coordinator/Senior Center Director to become a full-time position, including benefits. If so, this could increase Old Lyme’s cost from about $12,000 (for Social Service only) to $38,000 (after deducting Lymes’ share) or an increase of $26,000. Mr. Woolley has requested a stipend of $5,000 be paid to the
senior board in the area of “Program Support” to be earmarked for the Director in quarterly installments. The Center would still be responsible for the Director’s compensation, but the increased support from the towns would enable various programs to continue.
Board of Finance Meeting March 27, 2007
Mr. Woolley outlined the Senior Center expenditure line items. There are increases in utilities, oil, propane gas, heat, alarm service, and telephone expenses. New item listed on the operating budget is for an exterminator. The Center has been running over budget
for the last couple of years. Mr. Woolley stated that the intent of the Center was to rent the facility and keep a portion of the funds to offset operating expenses. However, rentals have been discontinued because the Senior Center Board has decided that the revenue does not compensate for the aggravation and the occasional damage to the Center. The Center is allowing more civic groups to use the facility without charge.
Mr. Woolley made a motion, seconded by Mrs. Sturges, to approve the budget of $30,340, including a new line “Program Support” in the amount of $5,000. Mr. Devoe, Mr. Garvin, Mr. Kerr, and Mr. Russell opposed the motion.
There was a discussion about the Program Support line of $5,000 and a motion was made by Mr. Devoe, seconded by Mr. Garvin to reduce the Program Support line to $1,500, changing the total budget amount to $26,840, contingent upon the Town of Lyme. Motion carried.
Five Year Capital Plan
Mr. Griswold outlined the five-year capital and nonrecurring budget for the General Government. He stated that it is difficult to predict Town Hall improvements due to the upcoming renovation projects. Under the Information Technology, there is a $10,000 amount for Document Imaging, which would reduce paper documents and file cabinets. Other items under General Government include Town Clerk copier, chair recovering and dishwasher replacement at the Senior Center, Assessor and Tax Quality Data software upgrade. Other items include replacing the White Sand Bathhouse, a digital transcription recorder and a fireproof file cabinet for the Registrar.
Public Works Capital items include small equipment, an Elgin Sweeper to replace a 1984 model, a rack body dump truck, a backhoe, and a dump truck with plow and sander. In the year 2010, a rehab vac/sweeper, pick up truck, and mason dump is included. Three tanks above ground fuel storage are included in the five year Capital plan.
Board of Finance Meeting March 27, 2007
The Public Safety Capital plan for Animal Control includes painting outside building, driveway paving and landscaping and miscellaneous equipment. Public Safety for Fire Capital items includes air bottles; exhaust removal system at Cross Lane, portable high- pressure pump to replace a 1954 unit. Other items include server computer, outboard motor, client and rugged laptops. Vehicle equipment included the Quint ladder to replace a 1989 tanker and two tankers. There was discussion about the Capital line of Emergency Services Retirement Plan catch-up payment for FY08. After discussion, Mr. Devoe made a motion, seconded by Mr. Woolley to move the Emergency Service Retirement Plan of $41,000 out of the Five Year Capital to Fire Services line #47-490 with a footnote earmarking it as a catchup
amount. Motion carried.
The Police Capital items include two police vehicles, six laptops and six cameras and accessories in vehicles. For building expenses include computer/copier, carpet replacement and mountain bike.
Five Year Capital for Public Works Roads and Projects include reconstruction of Swan and Portland Avenues, Johnnycake Hill Road, Meetinghouse Lane and north of Buttonball Road. The road paving projects include Wychwood/Nottingham Roads, Oakridge, Wildwood Roads, the south side of Buttonball Road and Flat Rock Hill Road.
A motion was made by Mr. Woolley, seconded by Mr. Kerr and passed unanimously to approve $673,500 for the Five Year Capital Plan.
42-275 Tree Commission
Mr. Griswold detailed a list of projected expenditures, which include roadside trimming of Town Woods Road, Whippoorwill Road, Sill Lane and various roads at Rogers Lake. There was discussion on the addition of a paid clerk, as all the Boards and Commissions have.
A motion was made by Mrs. Sturges, seconded by Mr. Kerr and passed unanimously to approve $27,045, which includes funding for the clerk.
41-15 Insurance
Mr. Griswold said the Insurance group includes medical insurance, life insurance, property/liability insurance, workman’s compensation, fire department insurance and bonds for the Tax Collector, Town Clerk and Treasurer.
Board of Finance Meeting March 27, 2007
It was decided to table voting until further information concerning the life insurance line is provided.
Revenues
Mr. Griswold distributed an Arrears and Interest/Liens FY08 sheet. This is based on FY06 Audit Uncollected increase to $417,815, $10,000,000 increase in FY08 estimates. The Revenue for FY2008 was reviewed. Under the Taxes, Interest and Lien Fees include Current Levy, Motor Vehicles, Property Tax Arrears, Interest and Lien Fees. The Local and Intergovernmental Revenues were distributed and reviewed.
Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, April 3, 2007 at 7:00 p.m. at the Old Lyme Memorial Town Hall. Insurance, PGN Library, Landfill Closure, Ambulance and the Old Lyme Historical Society budgets as well as three sets of minutes will be discussed and approved.
A motion was then made by Mr. Kerr, seconded by Mr. Devoe and passed unanimously to adjourn the meeting at 10:08 p.m.
Mr. Russell reopened the meeting for public comment. Resident, Thomas Kahrl questioned why the Board of Finance unanimously endorsed the proposed $54 million high school project. He stated that as the appointed fiduciary agents for the citizens of Old Lyme, the Board is responsible for making sound financial decisions for the taxpayers. He questioned if the Board analyzed the financial impact of the financing of the proposed $54 million project together with the impact of the financing of the existing $34 million project on the taxpayers.
A motion was then made by Mrs. Sturges, seconded by Mr. Garvin and passed unanimously to adjourn the meeting at 10:20 p.m.
Respectfully Submitted,
Michele Hayes-Finn
Secretary
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