Minutes of the Board of Finance meeting held on Tuesday, August 21, 2007 at 7:30 p.m. at Christ the King Church Parish Center.
Present: Regular Members: Andrew Russell, Wayne Devoe,
H. P. Garvin, III, David Woolley
Alternate Members: Adam Burrows, Janet Sturges
Timothy C. Griswold, Ex-officio, Doris Johnson, Financial Administrator
Absent: Regular Members: Mark Diebolt, Christopher Kerr
Alternate Members: Judy Read
Guests: Bonnie Reemsnyder, Selectwoman
William Swords, Human Resource Consultant, Personnel Management Associates of CT, Inc.
Jim Lyons, Auditor, Kostin, Ruffkess & Company, Inc.
Officer Edward Vasko, Old Lyme Police Department
Officer Dominic Solari, Old Lyme Police Department
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Mr. Russell called the meeting to order at 7: 34 p.m., and stated that Mr. Diebolt and Mr. Kerr would not be present at this evening’s meeting. A motion was made by Mr. Devoe, seconded by Mr. Woolley and passed unanimously to have Mr. Burrows vote for Mr. Diebolt and Mrs. Sturges to vote for Mr. Kerr in their absence. Motion carried.
Minutes of July 17, 2007
The minutes of July 17th were reviewed.
Being no corrections noted Mr. Devoe made a motion, seconded by Mr. Woolley to approve the minutes as written above. Motion carried. Mrs. Sturges and Mr. Garvin abstained from voting, as they were not present.
Starting Salaries for Newly Elected Full-time Elected Officials
Mr. Russell explained that in 1999, Mr. Swords created the Town’s compensation plan and has advised the Board of Finance annually about its implementation. The Salary Review Committee met with Mr. Swords to discuss a policy for the starting salaries for newly elected full-time elected officials (First Selectman, Tax Collector and Town Clerk).
Board of Finance Meeting August 21 2007
He recommends the starting annual salary for newly elected, full-time officials be determined at the discretion of and approval by the Board of Finance prior to the date of election to such office.
Mr. Russell noted that the Board of Finance has reduced the elected official’s salaries in the past. On October 17, 1995, the Board approved Fred Acker’s salary reduction schedule (minutes and schedule attached). Thus, reducing salaries has a precedent.
Mr. Russell also noted that the current salary of the First Selectman is 11% above the average of the peer towns. This is because Mr. Griswold has been in office for ten years. Other salaries are more in line with their averages.
Mr. Swords recommends the starting salaries should be based upon the Guidelines (attached), which take into account individual’s related experience. In no case shall the approved salary be less than the current salary range minimum nor more than the current salary range midpoint. Mrs. Reemsnyder stated that it should be the Selectmen, not the Board of Finance, to set policy. She discussed the value of past work experience outside of Town government. Mr. Swords replied that private sector experience is not the same as specific public office experience. Mr. Burrows stated that experience in non-government can be transferred to the area of Town government. Mr. Burrows said that a policy should not be approved at the first meeting it is presented. He would like to see what other
towns have in place for their elected officials. After further discussions, Mr. Russell stated that one primary concern for setting policy appears to be the timing of
its implementation.
After extensive conversation, a motion was made by Mr. Woolley, seconded by Mr. Burrows to table discussion on the first selectman’s salary until the November Board of Finance meeting, which is after the municipal elections. However, Mr. Devoe, Mr. Garvin, Mrs. Sturges and Mr. Russell opposed the motion. Discussion ensued stating that this subject has been in brought up on numerous occasions before candidates were named. Therefore, Mr. Garvin made a motion to accept Mr. Sword’s recommendation, Mrs. Sturges seconded the motion. Mr. Burrows said he believes the policy needs a second reading before acceptance. Mrs. Sturges stated that this subject has been discussed for a long time and the new policy needs to be accepted. Mr. Devoe, Mr. Russell, Mr. Garvin, and Mrs.
Sturges were in favor of the motion. Mr. Burrows and Mr. Woolley opposed the motion. Motion carried.
Board of Finance Meeting August 21 2007
There were questions raised on the Treasurer’s position and salary, as well as salary levels for other part-time elected officials. Town auditor, Jim Lyons, explained the Treasurer’s position and functions stating that the Treasurer is responsible for moving funds and signing checks, and usually doesn’t get involved with the general ledger of funds. The Treasurer position is also responsible for the selection of investment instruments and a lot of interface with the investment community.
After discussion, a motion was made by Mr. Devoe, seconded by Mr. Woolley to establish a new starting salary of $10,000 for the Treasurer’s position. Another motion was made by Mr. Woolley, seconded by Mrs. Sturges that the salaries of the selectmen and the registrars remain at the present level. Motion carried.
Auditor
Mr. Lyons noted a variety of recommendations made in conjunction with the FY2006 audit, relating to internal control. He stated that the Town doesn’t maintain an updated accounting policies and procedures manual outlining responsibilities and describing the steps involved in processing transactions, including usage of the Town’s computer system. They recommend that an updated manual to document all accounting policies, administrative and internal control procedures and all financial reporting requirements be developed.
Mr. Griswold noted that the prior auditor, Nicole Stadjuhar, made the same comment and that the Town had requested she assist in creating the manual. In fact, the Board of Finance approved the estimated cost of $2,500 and it was carried over as well. Mr. Lyons did not think $2,500 would be enough, but said he will supply an updated cost estimate.
Although the Town is in transition with implementing a new accounting system, their recommendations include trial balance for each Town fund is maintained and that all subsidiary records be reconciled to the general ledger on a monthly basis. He noted that the Town’s social worker; Town Clerk and Tax Collector departments do not maintain adequate segregation of duties over cash receipts and cash disbursements. The record keeping requirements for capital assets has increased significantly. They recommend that the Town complete implementing the procedures for capturing infrastructure improvements (roads, sewer lines, bridges, etc.,), including construction in progress, which will require a joint effort by the Finance and Public Works offices by June 30, 2008.
Board of Finance Meeting August 21, 2007
Donation of open space and Town acceptance of roads must be reflected as donation in the financial statements. Mr. Lyons noted that there are several other items pertaining to out of system checks and reconciling bank accounts on a timely fashion, however, he feels that when the new accounting system is fully up and running, these situations will be rectified.
Police Computers
Officer Vasko highlighted the cost for in-car computers from Tekrepco would be a Panasonic Toughbooks, eternal modem, antenna, modem cable, power cable and a one year warranty. An extended 2 yr. warranty can be purchased for $300 per unit. Whalen Engineering’s installation fees include mounting, parts; upgrade console, wire, and cables. The total per unit is $6,166.93 or $18,500.79 for three units.
Chart of Accounts and Carryovers
The Chart of Accounts and carryover sheets were distributed and reviewed.
Mr. Griswold detailed the Carryovers to FY2008. The Hartford Avenue reconstruction and drainage project that was started in the spring will be completed this fall. The carryovers include the evaluation and repair of the Rogers Lake Dam, Town Hall Improvement Study, Emergency Service Pension Plan fee, Engineering for Church Corner, DSL hookup for Public Works and Animal Control, and floor painting at the Fire Station. Total carryover to Fiscal Year 2008 is $413,200.
A motion was made by Mr. Devoe, seconded by Mr. Woolley to approve the carryovers subject to the auditor’s approval. Motion carried.
Selectman’s Report
Mr. Griswold said that Town Hall project is progressing on schedule.
Town Woods Park Phase II is moving along well.
Board of Finance Meeting August 21, 2007
The change over from the Landfill to the Transfer Station is still in progress. Earth moving activity will occur after Labor Day. A realistic projection of the switch over is anticipated at January, 2008. Following that, work on capping the landfill can begin.
The Church Corner Committee has nearly finalized its plan for lower Lyme Street and parts of Ferry and McCurdy Roads. Once done, the committee will conduct an informational meeting for adjacent neighbors and then schedule a public information meeting. The Town will check with CRERPA to determine when the project should be scheduled to be in synch with state/federal grants.
The bus barn is another lingering issue. The Selectmen voted to hold a meeting with Anchor Engineering, the Town landfill closure engineer, and representatives of District 18 to again see if the school will do and fund the necessary work to relocate the bus barn to a position of the landfill site. With less than three years until the existing bus contract expires, the element of time is becoming an issue. Mr. Griswold is adamant that the school do and pay for the analysis work required.
Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, September 18, 2007 at 7:30 p.m. at the Christ the King Church Parish Center.
A motion was then made by Mr. Woolley, seconded by Mr. Devoe and passed unanimously to adjourn the meeting at 10:30 p.m.
Respectfully Submitted,
Michele Hayes-Finn
Secretary
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