Minutes of the Board of Finance meeting held on Tuesday, March 29, 2011 at 7:00 p.m. at the Old Lyme Memorial Town Hall.
Present: Regular Members:~ Andrew Russell, Wayne Devoe, Christopher Kerr,
Janet Sturges, David Woolley
Alternate Members:~ Anne Coburn, David Kelsey, Judy Read
Timothy C. Griswold, ex-officio, Nicole Stajduhar, Finance Director
Absent: Regular Members:~ H. P. Garvin, III
Alternate Members:
Guest: Loren E Baker, Jr., President, Valley Shore Emergency Communications, Inc.
Rick Darren, Valley Shore Emergency Communications, Inc.
Bob Knauff, Representative, Old Lyme Volunteer Ambulance Association
Ellis Jewett, Old Lyme Fire Department
David Jewett, Chief, Old Lyme Fire Department
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Mr. Russell called the meeting to order at 7:00~p.m.
Mr. Garvin~will be absent this evening, 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 March 22, 2011
Mr. Russell stated that since some Board members did not receive their minutes via the mail, it was decided to postpone reviewing and approving the March 22nd minutes until the next meeting.
Budget Adjustments
Mrs. Stajduhar highlighted the budget estimate. She stated that there are several adjustments that are required. The Tree Warden salary ($1,500) was included in the motion for the Tree Commission and $10 “wages” was in the Fire Marshal’s budget. These items are also in the Salary Spreadsheet, causing a double counting. Also, a $488 decrease is required for a math error. Under the adjustments proposed, the Tax Collector – Motor Vehicle Fee needs to be increased $346 based on a letter from the State, the Fire Department insurance should be increased by $2,000, based on advice from the broker and the marital status of two employees and needs to be changed which will result in a Medical Insurance increase of $13,814. Therefore, the Tax Collector budget of
$18,020 that was approved must be increased to $18,366 and the Insurance budget that was approved in the amount of $635,520 must be increased to $651,334.
After the adjustments, the General Government budget is $7,667,532 and the capital budget is $706,393, bringing the total to $8,373,925.
A motion was made by Mrs. Sturges, seconded by Mr. Woolley to reduce the Tree Commission budget by $1,500 from $11,010 to $9,500. Motion carried.
A motion was made by Mr. Devoe, seconded by Mrs. Sturges to reduce the Fire Marshal budget by $10 from $5,410 to $5,400. Motion carried.
A motion was made by Ms. Read, seconded by Mrs. Sturges to revise salary spreadsheet total by $488 from $2,359,622 to $2,359,134. Motion carried.
A motion was made by Mr. Woolley, seconded by Ms. Read to increase the Tax Collector budget $346 from $18,020 to $18,366. Motion carried.
A motion was made by Mr. Devoe, seconded by Mr. Kerr to increase Insurance budget by $15,814 from $635,520 to $651,334. Motion carried.
Regional School District #18 Budget Summary
Mr. Griswold detailed the Regional School District #18’s budget summary stating that the total budget approved by the Board of Education for FY11-12 is $30,546,763. Mr. Griswold detailed the impact of the bonded debt on the FY 2012 budget and future years. Reducing the budget of $30,546,763 by the estimated receipts of $9,890 results in a subtotal of $30,536,873. RSD18 had a surplus of $1,388,435 for the 2010 fiscal year which will be used to reduce the FY 2012 billings to the two towns. After applying the surplus, the net billings to the towns will be $29,148,438, with $23,283,484 being Old Lyme’s burden.
Mr. Griswold discussed two scenarios: one using 100% of the FY 2010 surplus and the other using 50% of the surplus. Using 100% results in a net property tax requirement is $29,361,664 and using 50% results in a net property tax requirement of $29,911,664.
Mill Rate Calculation
Mr. Griswold highlighted the mill rate calculation using 50% of the surplus ($551,787). That will result in a mill rate of 19.19, rounded to 19.20, or a 3.12% increase. Using 100% of the surplus ($1,101,787) would bring the mill rate to 18.83, rounded to 18.80, or a 1.06% increase.
Mr. Russell stated that there are several guests in attendance to discuss the budget for Valley Shore Emergency Communications, Inc. budget, so a motion was made by Mr. Kerr, seconded by Mrs. Sturges to leave the Budget Adjustment and Mill Rate discussion and enter into discussion with representatives of Valley Shore Emergency Communications. Motion carried.
205-0510 Valley Shore Emergency Communications
Mr. Griswold explained that the Valley Shore Emergency Communications, Inc. Board of Directors is comprised of two representatives from each of the ten member towns. The Board approved a budget of $1,225,073 for FY2012, which is a 4.79% increase over current budget. However, due to the way the town shares are calculated, Old Lyme’s assessment increased from $113,584 to $122,098 or 7.50%. There is a chance that the State of CT may reduce the number of regions with consolidation of the emergency communication centers throughout the State.
Mr. Darren highlighted the formula that Valley Shore uses to calculate each town’s share. Individual town fees are calculated through the use of an established formula taking into account the grand list, population and call activity. Based on the formula, Old Lyme’s share for 2011-12 will increase from $113,584 to $122,098. He stated that the ten member towns are fortunate to have funding support through the 9-1-1 Telecommunications Fund, which is derived from a surcharge on every phone line. This year, the legislature is considering an increase in the surcharge cap to prepare for a complete replacement of the current 9-1-1 system infrastructure. Valley Shore is hoping that an increase in the surcharge may also result in enhanced financial support.
Valley Shore will continue to do everything possible locally to keep costs contained, while at the same time, supporting essential technical and operational programs. A top planning priority this year will be to complete the assessment of technical infrastructure and to identify ways in which its inevitable replacement may be funded.
Budget Adjustments and Mill Rate Calculation/ Wrap Up
There was discussion about whether or not to approve a tax abatement for Ryefield Manor, similar to that of Lymewood.
A motion was made by Mr. Kerr, seconded by Ms. Read to not grant Ryefield Manor a tax abatement this year. Mr. Woolley opposed the motion. Motion carried.
Mr. Woolley made the motion, seconded by Mr. Kerr, to grant a 100% tax abatement for Lymewood for FY 2010, however, any future requests for tax abatements will need to be reviewed by the Board of Finance annually. Motion carried.
Ames Open Space
Mr. Griswold stated that, last night, the Board of Selectmen voted to recommend to the voters at the Annual Town Budget Meeting the approval of the Ames property purchase as open space, using funds from the Town’s Land Acquisition Fund. This transaction was discussed at a previous Board of Finance meeting. A motion was made by Mrs. Sturges, seconded by Ms. Read, to recommend to the voters at the Annual Town Budget Meeting the approval of Ames property purchase as open space. Mr. Kerr abstained from voting. Motion carried.
Mr. Russell stated that the Board of Finance Budget Public Hearing will be on Monday, April 18, 2011 at 7:30 p.m. in the Town Hall Meeting Hall. Attendance is stressed.
A motion was then made by Mr. Kerr, seconded by Mrs. Sturges and passed unanimously to adjourn the meeting at 8:55 p.m.
Respectfully Submitted,
Michele Hayes-Finn
Secretary
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