Minutes of the Board of Finance meeting held on Tuesday, December 21, 2010 at the Old Lyme Memorial Town Hall
Present: Regular Members: Andrew Russell, Wayne Devoe, Janet Sturges, David Woolley
Alternate Members: David Kelsey, Maggie Ward
Absent: Regular Members: H. P. Garvin, III, Christopher Kerr
Alternate Members: Judy Read
Timothy C. Griswold, Ex-Officio
Nicole Stadjuhar, Finance Director
Skip Sibley, Selectman
Guest: Ronald W. Nossek, CPA, Kostin, Ruffkess & Company, LLC
Dr. Jack Faniola, Manager, Rye Field Manor
Ed Prsby, Accountant on the Board of Rye Field Manor
Jim Lewis, Secretary of the Board of Rye Field Manor
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Mr. Russell called the meeting to order at 7: 30 p.m. Mr. Russell stated that Mr. Kerr could not attend, therefore, a motion was made by Mrs. Sturges, seconded by Mr. Woolley to have Mr. Kelsey vote for Mr. Kerr in his absence. Motion carried.
Election of Chairman
A motion was made by Mrs. Sturges, seconded by Mr. Woolley and passed unanimously to elect Mr. Russell for Board of Finance Chairman. Motion carried.
Annual Financial Report for Year End June 30, 2010
Mr. Nossek highlighted the Annual Financial Report for Year End June 30, 2010. He stated that they have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Town, as of and for the year ended June 30, 2010, which collectively comprise the Town’s basic financial statement as listed in the table of contents of the Annual Financial Report. Mr. Nossek stated that under the financial highlights, the assets of the Town exceeded its liabilities at the close of the 2010 fiscal year by $15,908,452. Of this amount, $4,545,445 (unrestricted net assets) may be used to meet the Town’s ongoing obligations to citizens and creditors. The Town’s total net assets increased by $1,758,263. The most significant
reasons for the increase were the substantial additions to capital assets in excess of depreciation expense. As of the close of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $5,955,839, a decrease of $458,882 in comparison with the prior year.
As the end of the 2010 fiscal year, unreserved fund balance for the general fund was $3,468,375, or 11.3% of total general fund expenditures and transfers out. The Town’s total long-term obligations increased by $89,179 (1.5%) during the 2010 fiscal year due to increases to certain liabilities at June 30, 2010.
Mr. Nossek stated that the discussion and analysis is intended to serve as an introduction to the Town of Old Lyme’s basic financial statements. The town’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. The report also contains other supplementary information in addition to the basic financial statements themselves.
Mr. Russell stated that since there are guests attending for Ryefield Manor, he requested that Old Business be moved up on the Agenda. A motion was made by Mr. Kelsey, seconded by Mrs. Sturges to move Old Business up on the agenda. Motion carried.
Old Business
Rye Field Tax Abatement: Mr. Kelsey stated that Rye Field Manor currently pays $18,380 a year in real estate taxes. Rye Field Manor, which consists of 13 buildings containing 39 housing units plus a common building located on 28 acres and is located off of the Boston Post Road near the Kus stump dump. Shoreline Affordable Housing, Inc., is a 50(c)3 entity formed under the Nonstock Corporation Act of State of CT, which amended certificate of incorporation was filed in 2001. Rye Field Manor is operated for the benefit of elderly low-income residents with rental assistance from the State of CT Rental Assistance Program. The average monthly rents for the units in 2009-2010 were $510 per unit. Dr. Faniola stated that Rye Field Manor was built with grants from the State of CT. The 2010
balance sheet value of undepreciated improvements and land is $4.1 million. The cash on balance sheet at June 30, 2010 was $159,277. The use of any tax abatement would be used solely to fund required capital improvements, which include: corrections/additions to water system ($10,000-$12,000); replacement of 39 propane hot air furnaces ($156,000) and window replacement, as needed ($200 labor and materials per window). There was no recommendation at this point about a tax abatement and it will be discussed during the budget season.
Minutes of November 16, 2010
The minutes of November 16, 2010 meeting were reviewed. The corrections included: Page 2, under Single Stream, 2nd sentence, put a “period (.)” after for word “requested” and start the next sentence with the word “later”. On page 3, under #1, add the word “current” before Shoreline Sanitation.
There being no corrections noted, a motion was made by Mrs. Sturges, seconded by Mr. Woolley to approve the minutes as modified. Mr. Devoe abstained as he was absent from that meeting. Motion carried.
Minutes of Special Meeting of December 07, 2010
The minutes of December 7th Special meeting were distributed and will be reviewed at the January 18th meeting.
Chart of Accounts/Financial Reports
Mrs. Stajduhar highlighted the Revenue report for November 2010. The Property tax current levy is 54.4% collected. The November revenue collected by the Town Clerk in the amount of $21,856, has not been posted, which would change the amount remaining to be collected at 46.8%. The November revenue collected by the Building of $13,593 has not been posted, which would change the amount remaining to be collected at 47.9%. Under revenues, the Town received a State grant in the amount of $129,798 for Education Equalization Grant.
Within the November expenditures, Public works road repairs for cold patch are currently overspent, but $4,000 was mis-posted and should be posted to chip seal. The Municipal Police spent $8,500 worth of time on DUI and Seat Belt Grant. The Capital Town Hall FF&E represents a 50% deposit ($5,348) for the new phone system that will be installed within the month. Under Capital, the R-10 Zoning Project includes $4,019 in payroll for those individuals working on determinations. The Capital Public Works paving of Oakridge/Wildwood completed at a cost of $218,900.
Budget Overview
Mrs. Stajduhar stated budgets are still being received and compiled.
Review the 2011 Budget and Regular Meeting Schedule
The 2011 Meeting Schedule was distributed and briefly discussed.
Mr. Devoe made a motion, seconded by Mr. Kelsey to approve the meeting schedule as written.
New Business
Nothing to report.
Selectman’s Report
Mr. Griswold spoke about the pro-forma cost of Automated Single Stream Recycling and the estimated cost per ton. Assuming a 400 ton increase in recycling (33% from 1,200 tons to 1,600 tons) after introducing the new system, which corresponds to a 400 ton decrease in refuse, there would be a $27,600 savings in CRRA tip fees. In conclusion, the automated single stream will cost about $32,300 more per year than at present. However, as the recycling rate increases, the cost per ton will decrease and the town will save about $7,000 in tip fees for each 100 tons. With the present system, the town would have to add a third truck if tonnage exceeds 1,500 tons, however , the automated system can handle up to 3,600 tons before weekly collection or a second unit is needed.
The purchase of 4,700 (95 gallon) recycling carts is estimated to cost $225,000. Delivery to Old Lyme, assembly of the carts, home delivery and inventory will increase the cost to about $260,000. Town Meeting approved an amount not to exceed $260,000 to cover all costs associated with the purchase and distribution of 4,700 (95 gallon) recycling carts. Mr. Griswold is compiling three quotes for the carts and will make a recommendation to the Boards of Selectmen and Finance in January.
Mr. Griswold stated that the four towns that comprise the new Probate Court in East Lyme are reviewing a draft agreement outlining each town’s responsibilities. Each town will be responsible for a percentage of the operating costs, which will be determined by the census figures for each town. Presently, Old Lyme would be responsible for about 15% of the total operating costs. The share of the expense for capital items will need to be determined. The question of insurance liability has not been discussed yet.
Mr. Griswold stated that he attended a workshop and conference call regarding bond rating for the School District High School building project. The bond rating should be known before New Year’s Day and bond offering is scheduled for January 5th. Moody’s Bond Agency seemed pleased with the financial conditions of the School District and the Towns of Lyme and Old Lyme. We expect a bond rating of AA1.
Prior to this meeting, Mr. Kerr called Mr. Griswold about funding the purchase of a new, large garage door for the pole building in the Public Works yard. The estimated cost is $6,000. Mr. Kerr wanted to know if there is sufficient funding left in the Public Works Garage account to pay for the door. Mr. Griswold told the Board there is $20,000 remaining in carryover but that has been earmarked for a truck wash bay, the cost of which has not been determined There are different opinions as to whether Old Lyme should build its own wash bay or work out an arrangement with East Lyme, which will install one in its new Colton Road facility in the future. The consensus of the Board was to do more research and discuss this matter next month when Mr. Kerr will be available.
Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, January 18, 2011 at 7:30 p.m.
A motion was made by Mrs. Sturges, seconded by Mr. Devoe to adjourn the meeting at 9:36 p.m.
Respectfully Submitted,
Michele Hayes-Finn
Secretary
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