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Board of Finance Minutes 09/21/2010
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Minutes of the Board of Finance meeting held on Tuesday, September 21, 2010 at the Old Lyme Memorial Town Hall
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Present: |
Regular Members: Andrew Russell, Wayne Devoe, H. P. Garvin, III, Christopher Kerr, Janet Sturges, David Woolley
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Alternate Members: David Kelsey, Judy Read
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Absent: |
Regular Members:
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Alternate Members: Maggie Ward
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Guest: |
Atty. Fredrik Holth, Chairman, Rogers Lake Authority
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Mr. Russell called the meeting to order at 7: 35 p.m. Mr. Russell stated that there is one guest this evening. Therefore, a motion was made by Mrs. Sturges, seconded by Mr. Woolley to move New Business up on the agenda in order to accommodate this evening’s guest. Motion carried.
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New Business |
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Atty. Holth stated that a survey of the aquatic plants in the lake will be conducted in September, 2010. The plant beds will be sampled to determine the dominant species, density, distribution and bottom sediment attributes, using semi-quantitative methods. Special attention will be paid to identifying the presence of non-native invasive species, especially milfoils, fanwort, curly-leaf pondweed, minor naiad and water chestnut. This Aquatic Plant Survey (two field days) will cost $2,240.
A brief summary of the findings will be prepared that discusses the state of aquatic plants growth in Rogers Lake including a species list of the plant present. At least one map will be generated that shows the locations of major weed beds in the lake. Additional maps will be prepared that show other areas of dense weed growths well as the location of any invasive species. The report will discuss methods of weed control that appear best suited to Rogers Lake. The amount for the Summary Report is $2,800.
The total amount for the Survey and Summary Report is $5,040, split 50% between the two towns. The Town of Lyme has already approved $2,520, so the amount requested from Old Lyme is $2,520. Mr. Griswold stated that the Board of Selectmen recommended approval of half of the survey and report.
A motion was made by Mr. Kerr, seconded by Mrs. Sturges to approve an amount not to exceed $2,520 for Old Lyme’s share of the Survey and Summary Report for the Rogers Lake Proposal for Aquatic Plant Survey and Management Evaluation. Motion carried. (This will be a new item under Capital – General Government).
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Budget Overview Discussion |
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Mrs. Stajduhar said that letters have been sent out to the spending agencies requesting capital and operating budgets. Information should be submitted by October 25th. Binders should be available by the November meeting and Specialists can then meet with their spending agencies.
Mr. Russell said that if any one of the Board of Finance members wants to shift his/her area of specialty, please let him know as soon as possible. The Board of Finance goal for the upcoming budget is a zero increase in the operating budget.
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Minutes of August 17, 2010 |
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The minutes of August 17, 2010 meeting were reviewed. The corrections included: Page 1, last sentence should read, “The Sick Leave Buy Back…”On page 2, first paragraph, forth sentence should read, “Under Debt Service (for Town Hall) Principal,….”was not required”. Third paragraph, third sentence, a typographical error to the word, “posted”. Forth paragraph, third sentence should read, “FY10 Revenues were $246,153 more than budgeted and expenditures were $667,485 less than budgeted.” Forth sentence, delete the words “and unused carry-overs from FY10 are $131,500” from the sentence. On page 3, forth paragraph, delete the words, “back to” from the motion.
There being no other corrections noted, a motion was made by Mrs. Sturges, seconded by Mr. Russell to approve the minutes as modified. Motion carried.
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New Business |
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Mr. Griswold requested that discussion about the Town’s annual pension contribution be added to the agenda. A motion was made by Mrs. Sturges, seconded by Mr. Devoe and passed unanimously to add the Earning of Annual Pension Contribution to this evening’s agenda. Motion carried.
Mr. Griswold stated that full-time employees have historically been eligible to receive an eight percent pension contribution each year, based on each employee’s base salary for that year. The pension contribution has normally been made to each employee’s account during the month of September or October so that the employees may receive the benefit or earnings on the current year contribution for most of the fiscal year. After completing one year or full-time employment, employees are subject to a five year vesting schedule (20% vested each of the five years). The first year pension contribution is prorated so the employment date is reconciled with the fiscal year. The question has risen as to how we should handle the pension contribution when an employee terminates employment during
the fiscal year.
After discussion, the Board requested an opinion about what the Town may legally do with “unearned” amounts. In the past, the Town has had the Hartford deduct the “unearned” portion of the pension contribution for the current year when the employee left during the year. Mrs. Stajduhar and Mr. Griswold discussed this with the Board of Selectmen and two options were discussed, which they have refined. Option one, the contribution would be subject to the following “years of service” calculation”: 0-6 years is 100% of the of the current year contribution would be forfeited; 7-10 years is 50% of the current year contribution would be forfeited; 11-15 years is 25% of the current year contribution would be forfeited; 16 years plus is 0% of the current year
contribution would be forfeited. The Hartford could remove the forfeited portion of the current year contribution from the employee’s account(s). Option two, the contribution could be made 50% on or about September 30th and 50% on or about March 30th. The employee would have to be employed on one or both of those dates to receive 50% or 100% of the contribution. There would be no recognition of “years of service”. One negative is that employees would lose six month’s income on the 50% of the contribution that is paid in March. Because it is uncertain about the legality of removing funds from an employee’s account(s), it was recommended the Mr. Griswold speak with Jack Kneale, the financial advisor for the Emergency Services Pension Plan, for advice.
Mr. Woolley made a motion, seconded by Mr. Garvin to add donation of vacation and/or Sick Time to the agenda. Motion carried.
Mr. Griswold stated that the question has arisen as to whether the Town would allow fulltime employees to donate vacation and/or sick time to another employee who is experiencing a personal emergency or hardship. The Selectmen discussed this last evening and were generally in favor of allowing the donation of vacation and/or sick time, subject to certain parameters. The definition of an emergency or hardship needs to be defined and each case must be approved by the Board of Selectmen. Approval will also take into account the ramifications of the emergency or hardship, such as likely duration, substitute staffing and the like. The recipient must full use all of his/her earned or accumulated vacation and sick time before using any donated time. The sum of the donated time must not exceed the
remaining working days or hours of the recipient in the current fiscal year. There was a discussion on things, such as differences in hourly pay, cost of temporary help to cover certain positions and the like. No action was taken.
A motion was made by Mr. Woolley, seconded by Mr. Devoe to add Rye Field Manor tax abatement to the agenda. Motion carried.
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Rye Field Manor Tax AbatementRequest: Mr. Kelsey reviewed the situation with the Rye Field Manor tax abatement request with the purpose of gathering questions from the Board in order to prepare a more formal memorandum and alternatives for action by the Board of Finance. The request was made by Jack Faniola, the President of the Board of Directors of Shoreline Affordable Housing, Inc., the 501(c)3 organization that owns and oversees Rye Field Manor. Mr. Kelsey noted the property consists of 39 units of senior affordable housing, with the State of CT providing rental assistance for residents, based on income. Total revenue is around $240,000. He also noted the property taxes paid to the Town totaled
approximately $22,000. He further remarked that Jack Faniola and possibly others on the Board or related to board members receive management and property services fees from the organization. Mr. Kelsey said that the use of any savings from a tax abatement would be used to improve existing heating systems at the property and address other deferred maintenance.
Ms. Read asked if the management fees were capped or were reviewed and approved by any government entity. Mr. Kerr asked if Old Lyme residents were given priority when vacancies arose. Ms. Read further asked whether Mr. Faniola or other board members or relatives received additional fees beyond management and property maintenance fees. Mr. Griswold noted that Lymewood, a smaller senior affordable housing project, does receive a tax abatement, though no member of that board has any related party transactions with the project.
Ms. Read expressed a need to establish proper oversight of the use of any tax savings. Mr. Kelsey restated the outstanding questions from the Board of Finance and committed to getting answers that will be incorporated into a memorandum of alternatives.
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Chart of accounts/Financial Report |
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Mrs. Stajduhar stated that the property tax (current levy) is 53% collected. The capital assets income reflects the sale of the old sweeper for $1,200. The Miscellaneous income includes $2,300 from sale of the 35 gallon trashcans. The August collection by Town Clerk of $11,820 is not included in the revenue report. August collection by the Building Department of $5,843 is also not included in the revenue. The Park and Recreation revenue is understated by $4,125 which is still in a deferred revenue account but will be adjusted in September. The Parking Lot revenue represents the actual revenue collected from the municipal parking lot and not transfers from the parking lot fund. The parking lot fund was
merged into the general fund during the month. August collection for septage of $9,500 is not included in revenue.
Within the Expenditures, the Assessor’s legal counsel over budget due to tax appeals. The Health Department legal counsel over budget is due to legal issues related to part time building/health position. The Finance clerk needs to be posed back to prior year through carry over, as well as the Park and Recreation clerk. The Park and Recreation Sound View Facilities are actual expenditures paid.
The Public Works chip seal of Whippoorwill, Grassy Hill, and Coach Roads is $87,402. Under Capital, two copiers were purchased for Police and Tax/Assessor’s Office for $4,700. Capital expense of $3,900 represents Emergency Management Equipment purchased but it is not expected to be reimbursed 100%.
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Old Business |
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Old Business is combined with the Selectman’s Report.
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Selectman’s Office |
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Bus Barn: The Bus Barn dedication took place on September 8th at the Bus Barn on Four Mile River Road. The project is complete and came in $25,000 less than actually budgeted.
Church Corner: Church Corner is near completion. The bluestone walks have been installed by the First Congregational Church and the contractor is waiting for additional blue stone in order to complete the walk along the Green. Mr. Griswold stated that Zanardi Paving has paved the drive to the Cox residence and to the Christ the King Rectory. The pavement must cure for six weeks before the chip seal gravel is applied to the surface. The Town’s share of the cost ($5,608) will be charged to Public Works chip seal which is $13,300 under spent. The Historic District approved a bench to be installed at the Church Corner green facing the Congregational Church.
RFP for Single Stream Recycling: There was a mandatory pre-bid meeting last week, attended by five interested bidders. Various questions were asked and will be answered via e-mail. Bids are due on October 1st.
FEMA: Mr. Griswold reported that the March 30-31, 2010 rain storm cost the town $71,722. FEMA State and Federal assistance will reimburse the town $55,375, leaving the town’s share of $16,346. Of that amount approximately $6,300 represents donated volunteer time so the Town’s total expense for the storm is approximately $10,000.
Oakridge Road project: Mr. Griswold reported that Mr. Adanti received bids for reconstructing Oakridge/Wildwood Roads and Homestead Circle. The successful bidders are Pasteryak for Oakridge/Wildwood at $214,900 versus the budget of $220,000 and Sullivan Paving for Homestead circle at $69,560 versus a budget of $86,000.
Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, October 19, 2010 at 7:30 p.m.
A motion was made by Mrs. Sturges, seconded by Mr. Devoe to adjourn the meeting at 9:35 p.m.
Respectfully Submitted,
Michele Hayes-Finn Secretary
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