Old Lyme CT - Board of Finance Minutes 10/19/2010

Board of Finance Minutes 10/19/2010

	Minutes of the Board of Finance meeting held on Tuesday, October 19, 2010 at the Old Lyme Memorial Town Hall
Present:	Regular Members: Andrew Russell, Wayne Devoe, Christopher Kerr, Janet Sturges, David Woolley
	Alternate Members: Judy Read
Absent:	Regular Members: H. P. Garvin, III
	Alternate Members: David Kelsey, Maggie Ward Timothy C. Griswold, Ex-Officio Nicole Stadjuhar, Finance Director
Guest:	Bonnie Reemsnyder, Selectwoman
	Mr. Russell called the meeting to order at 7: 33 p.m. Mr. Russell stated that there is one regular member absent. Therefore, a motion was made by Mrs. Sturges, seconded by Mr. Kerr to have Ms. Read vote for Mr. Garvin in his absence. Motion carried. Minutes of September 21, 2010 The minutes of September 21, 2010 meeting were reviewed. The corrections included: Page 1, under New Business, 1^st sentence should identify Rogers Lake. Under New Business, 3^rd paragraph, last sentence, add the word “cost” at the end of the sentence. On page 2, 6^th paragraph, 3^rd sentence, change the word “or” to “of”. On page 5, 1^st paragraph, 3^rd sentence, add the word “charges” after the word “clerk” and change the word “posed” to “posted”. There being no other corrections noted, a motion was made by Mrs. Sturges, seconded by Mr. Devoe to approve the minutes as modified. Motion carried.
	New Business Mr. Russell distributed literature with pictures of the new police vehicle that was put in service on September 28^th. Positive comments from town residents and other law enforcement agencies have been received with regards to the appearance of the vehicle. The Police thank the Town for its support.
	Old Business Employee donation of Vacation time Mr. Griswold explained the sick leave bank policy that RD18 has in place. The policy states that a sick leave bank shall be provided to Non-Certified employees (who are members of the bargaining unit) at the start of each fiscal year. At the start of each fiscal year, each member shall contribute one-half sick day per year to the sick bank from his/her allotment of paid sick days. Prior to accessing the employee sick bank, employees will be required to utilize all accrued sick, personal and vacation time. Should circumstances arise wherein an employee may require more than his/her accumulated sick or vacation leave, the employee may submit a letter requesting additional sick days from the sick bank. The person of authority shall have the right to grant or deny requests in a particular case at his/her discretion, (the person of authority’s decision on a request shall not be subject to the grievance and arbitration procedure of this Agreement). There is a maximum of 20 sick bank days that will be allowed per employee per year, so long as the banked sick leave is sufficient to cover the claims. Should special circumstance arise wherein an employee may require more than his/her accumulated sick leave plus 20 sick bank days, the employee must submit an additional letter to the person of authority for review and decision. Sick leave contributions to the sick bank that are not used during the year in which they are made shall be eliminated at the end of the fiscal year and shall not be restored to the donating employees. Rye Field Tax Abatement Mr. Griswold stated that Mr. Kelsey has been in contact with Dr. Faniola and has some additional information to share with the Board regarding Rye Field Manor tax abatement request and will bring it to the November Board of Finance meeting. Mr. Griswold stated that Dr. Faniola has supplied the 2009 financial statements, as well as documentation stating that Dr. Faniola and his wife have never been members of the Board of Rye Field Manor. Mr. Kerr believes that the taxes are already low and inquired if they are already receiving a tax reduction. Questions as to what their taxes and management fees are were asked. After discussion, Mr. Devoe said that it would be helpful for Mr. Kelsey, as well the accountants for Shoreline Affordable Housing, Inc. be present to clarify some questions. Roger’s Lake Weed Study Mr. Griswold stated that a weed, fan wart, was spotted by the consultant from Northeast Aquatic Research, the firm hired by the Towns of Lyme and Old Lyme at Rogers Lake. The weed is fast spreading and should be eliminated as soon as possible. The Board of Selectmen is hoping the Lake Authority will convene a meeting to include the Authority and the Boards of Selectmen from Lyme and Old Lyme to discuss options to combat the weed problem and the related costs. Mr. Griswold said Old Lyme is likely unwilling to continue to fund an option that has little chance of success, such as weed harvesting. Representatives from the DEP and the consulting company should attend as well.
	Budget Overview Discussion

	Mrs. Stajduhar said that letters have been sent out to spending agencies requesting their capital and operating budgets. Information should be submitted to the Selectman’s Office by October 25^th. Binders should be available at the November meeting and Specialists can then meet with their spending agencies.

	Chart of Accounts/Financial Report
	Mrs. Stajduhar stated that she went to Shoreline Sanitation to review its financials and is happy to report that she felt the town was getting a very fair contract with Shoreline Sanitation. Revenues: Mrs. Stajduhar highlighted the Revenues stating that the property tax current levy is 53.3% collected. Through September, the revenue collected by the Town Clerk of $27,447 has not been posted which would change the amount remaining to be collected to be 68%. The September revenue collected by Building of $10,377 has not been posted which would change the amount remaining to be collected to be 78%. Parks and Recreation revenue has been adjusted by $38,345, which was in deferred revenue. Beach Sticker revenue has been adjusted by $4,125 which was in deferred revenue. The Town received half (or $57,352) in Town Aid road grant from the State and $12,432 in Police DUI. Expenditures: Within the Expenditures, the Treasurer contracted services includes FY 10/11 renewal for accounting software of $3,253 and $5,000 for auditor’s progress billing. Under the Treasurer – miscellaneous/other includes payment of IRS penalty for failure to file 1099 for 2008 of $2,650. The Information Technology contracted services includes FY 10/11 renewal for VTH of $3,900. The Assessor’s legal counsel over budget due to appraisals for 5 tax appeals. The Town Hall – contracted services includes $3,133 for FY10/11 maintenance contract with Automated Building Systems, Inc., the company that will maintain the Town Hall’s HVAC system. Emergency Service Retirement payment that was made for $33,000 is $8,540 under budget. The Debt payment made was $225,000 principal and $55,406 interest expense. Capital Expenditures: Under Parks and Recreation includes the Little League field reimbursement of $3,270. The flail roadside mower was delivered and paid for in the amount of $89,646. Emergency Management Equipment of $9,483 was purchased and is to be reimbursed 100%.


	Selectman’s Report
	McCurdy Ct. Culvert: The engineering work for the McCurdy Court culvert is complete and will be submitted to the DEP. Once approved, we hope to perform the work next year. Rogers Lake Dam: Mr. Griswold stated that the State of CT approved a Small Town Economic Assistance Program grant in the amount of $227,000 for the Roger’s Lake Dam. The total construction is roughly estimated at $315,000. The Town has $74,000 in carryover and hopes the CT Watershed group will contribute $12,000 towards the project. Bus Barn: Mr. Griswold distributed and reviewed the Cost Repayment Schedule. The total cost of the Bus Barn was slightly more than $650,000, which is less than the budget of $675,000. Mr. Griswold had a meeting with the Superintendent of Schools and the School’s Finance Chairman to review a possible repayment plan, using an interest rate schedule that the Town’s underwriter provided. It is expected to take 17 years to repay interest and principal. This includes a reserve payment of $5,000 per year, and $500 for insurance and miscellaneous items. The purpose of the reserve would be to set money aside for repairs in the future. There was discussion of paying the loan twice a year to reduce the time frame. This would save only $6,000 over 17 years. Presently, the rent is $50,000, and $5,500 would come out of it, leaving $44,500 available to pay down the loan. Every five years the payment would be increased by $5,000, which would accelerate the payoff date. Church Corner: The final bluestone has been delivered and Salem Country Gardens will possibly be performing the installation shortly. Backfilling two sections of granite curbing must also be done. Automated Single Stream Recycling Bud Update: Mr. Griswold stated that within the single stream recycling bid, the town requested bids to include an annual cost on a lump sum basis (fixed price) and on a cost-plus basis with a ceiling (guaranteed maximum price). There were two bids received from interested contractors. He stated that both of the bids were originally incomplete and has contacted both contractors to obtain additional information. One contractor provided unit pricing only, stating that the cost will be based on how many recycling carts are actually picked-up. No pricing was provided based on a lump sum or on a guaranteed maximum price. The other contractor supplied the lump sum and guaranteed maximum price, as requested. Mr. Griswold will work with our attorney to evaluate the bids and will provide an update at the November meeting. Flail Mower: Mr. Griswold distributed a photo and commented that Public Works received the new flail mower. It is in service performing roadside trimming.

	Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, November 16, 2010 at 7:30 p.m. A motion was made by Mr Kerr, seconded by Ms. Read to adjourn the meeting at 8:50 p.m. Respectfully Submitted, Michele Hayes-Finn Secretary