Minutes of the Board of Finance meeting held on Tuesday, April 1, 2008 at 7:00 p.m. at Christ the King Church Parish Center.
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Present:~~~~~~~~~~ Regular Members:~ Andrew Russell, Wayne Devoe, Mark Diebolt,
H. P. Garvin, III, Christopher Kerr,
Alternate Members:~ Judy Read, Ruth Roach, Janet Sturges
Timothy C. Griswold, ex-officio
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Absent:~~~~~~~~~~~ Regular Members:~David Woolley
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Guest: Ronald E. Rose, Building Official/Sanitarian
Skip Sibley, Selectman
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Mr. Russell called the meeting to order at 7:00~p.m. Mr. Russell stated that Mr. Woolley will not be present this evening, therefore, a motion was made by Mr. Diebolt, seconded by Mr. Kerr to have Mrs. Sturges vote for Mr. Woolley. Motion carried.
Director of Health Compensation
Mr. Rose stated that the Town’s Health Director, Dr. Sikand, has requested an increase in his stipend. His compensation has been unchanged since FY06 ($19,000) while the volume of work has increased considerably. He started in FY02 at $15,000 and his pay was increased to $18,000 in FY04. Mr. Rose explained that the State has increased the many mandates requiring response and action. A few of these include emergency preparedness, pandemic planning, lead protocol follow-up, reviewing of mandatory reporting, meetings, etc. The hours of the job have increased to 8 to 10 hours a week and the Health Director makes himself available 24 hours a day, 7 days a week and arranges for back-up physician coverage when needed. Mr. Rose recommended Dr. Sikand’s stipend be increased by $6,000
from $19,000 to $25,000.
Salaries
Salary sheet reflects a 3% general wage increase and 3% step increase for eligible staff. Other increases include hiring a Finance Director and reconfiguring that department. It is recommended the foreman position become a project coordinator position for twelve months, through April 2009. 50% of Landfill Coordinator position is funded from Landfill Closure Account and a Gate Tender that will be 100% funded by Landfill Closure account. There was discussion on the Ambulance Association hours and salary. There was discussion on the Information Technology Clerk position and its necessity. Mr. Sibley agreed with the need for a technology person, however, he did not agree with the job sharing concept. Mr. Sibley commented on a number of personnel issues and the Board suggested that the
Board of Selectmen present the Board of Finance with its recommendations on these issues. No action could be taken at this time.
A motion was made by Mr. Diebolt, seconded by Mr. Garvin and passed unanimously to table salaries pending clarification from the Board of Selectmen. Motion carried.
Board of Finance Meeting April 1, 2008
Insurance
Mr. Griswold stated that the insurance line item includes the medical, life, property/liability insurance, workman’s compensation, etc. The figures have not been received from the insurance company for FY09 budget. Therefore, it was decided to pass on this line until next week.
Special Deductions
Mr. Griswold highlighted the Special Deductions, which includes social security, unemployment insurance, pensions (8% of the full-time compensation) and vacation/sick leave buyback. It was decided to pass on this line item until next week.
Treasurer
Mr. Griswold stated that Kostin, Rufkess plans to increase the cost of our audit from about $17,000 to $44,000 per year. The firm is willing to discount the fee to about $33,000. Mr. Nossik told Mr. Griswold that it might make sense for Old Lyme to send out a Request for Proposal (RFP) to area CPA firms which might result in a lower fee. He will send a sample RFP and will supply the names of capable CPA firms.
Budget Review
Proposed Budget for fiscal year 2008
Mr. Griswold reviewed the proposed budget for fiscal year 2008. Under Local Revenue, there is an increase under Landfill Income with anticipation of the new fees when transition to Transfer Station scale is functioning. Elimination of the Newsletter Advertisements is due to the outsourcing of the Newsletter. Under Intergovernmental Revenue, there are increases in Town Aid road ($30,700), ECS ($105,600) and several other grants. There is a reduction under Emergency Management ($90,000), and cut-backs of State assistance has reduced some State Programs. Mr. Griswold said LOCIP will be zero because those funds will be used for the Town Hall expansion project.
Board of Finance Meeting April 01, 2008
General Government expenses increased by $171,210 or 8.59%. Major contributors are the Treasurer’s office salaries ($44,749) and Town Hall expenses (($45,700). Boards and Commissions increased by $9,435 or 3.01% with increases in the Flood and Erosion Control Committee ($530) and Historic District Commission ($510) and Land Use ($13,956). Decreases came from the Harbor Management Commission (-$510), Water Pollution Control Authority (-$4,937) and the Board of Finance (-$333). Public Works increased by $25,320 (3.43%). Parks and Recreation increased $37,945 or 11.95% with an increase in Town Woods Park ($18,138) and a Cross Lane parking attendant. The Public Safety increased $37,175 or 2.76% with large increases in the Fire Department ($22,036) and the Police ($34,653).
Social Services increased $4,523 or 2.27%. Under Capital Project Funds, there is a decrease of $50,000 related to Open Space. The area of Grants to Non-Profits increased by $18,500 (7.41%) with the major share going to the Library ($15,000). The Private Beach Associations increased by $12,000 (13%) for the additional security for the Federation of Beaches. Sanitation/Recycling increased $16,005 or 1.31% with numerous increases and a major reduction in Septage Disposal (-$45,000) due to lower activity. Debt Service increased $173,000 due to the Town Hall financing. Capital increased $38,234 or 5.68%. The School budget increased $732,725 or 3.39%, after use of the School’s fund balance.
Mill Rate Calculation for Fiscal Year 2009
The total grand list has increased by $9,104,050 or 0.61%. The net property tax requirement increased by $1,241,588 (4.64%). The mill rate calculation includes Tax Relief Elderly for $40,000, Volunteer Tax Abatement for $45,000 and Lymewood Tax Abatement for $21,400 (1.90%). Therefore, gross property tax requirement increased by $1,243,988 or 4.64%. The impact on the mill rate is an increase of .72, increasing the mill rate to 18.96%. The new mill rate of 19.0 mills is recommended.
Minutes of March 11, 2008
Minutes of March 11th were reviewed. There was a typographical error noted on page 4, first sentence, change 1 cent to 12 cents regarding the per gallon charge for septage disposal.
A motion was made by Mr. Devoe, seconded by Mr. Kerr and passed unanimously to approve the minutes as amended. Motion carried.
Board of Finance Meeting April 1, 2008
Minutes of March 18, 2008
Minutes of March 18th were review. There were no corrections noted.
Therefore, a motion was made by Mr. Kerr, seconded by Mr. Devoe and passed unanimously to approve the minutes as written. Motion carried.
Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday,
April 8th. Budgets for the following will be reviewed and discussed: Minutes of March 25th, salaries, Insurance, Special Deductions, and Treasurer.
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Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, April 8, 2008 at 7:00 p.m. at the Christ the King Church Parish Center.
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A motion was then made by Mr. Kerr, seconded by Mr. Diebolt and passed unanimously to adjourn the meeting at 9:15 p.m.
Respectfully Submitted,
Michele Hayes-Finn
Secretary
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