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Minutes of the Board of Finance meeting held on Tuesday, August 16, 2011 at 7:30 p.m. 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
Alternate Members:~ Anne Coburn, David Kelsey
Timothy C. Griswold, Ex-Officio
Nicole Stadjuhar, Finance Director
Skip Sibley, Selectman
Bonnie Reemsnyder, Selectwoman
Absent:~~~~~~~~~~~ Regular Members:~
~~~~~~~~~Alternate Members:~ Judy Read
Guest: Ed Adanti, Public Works Director
Ruth Roach, Information Technology Specialist
Ron Rose, Sanitarian and Building Inspector
John Flower, Asst. Sanitarian and Asst. Building Inspector
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Mr. Russell called the meeting to order at 7:34 p.m.
Minutes of July 19, 2011
The minutes of the July 19th meeting were reviewed.
There being no corrections noted, a motion was made by Mr. Kerr, seconded by Mr. Devoe and passed unanimously to approve the minutes as written. Motion carried.
Chart of Accounts/Financial Reports
Mrs. Stajduhar highlighted the July 2011 Financial Report notes for the Revenues stating the total tax collections for property tax were $15,387,465 and current levy is at 52.34% collected. Revenue that has been collected for summer beach parking fines is $7,926. Park and Recreation has collected $34,261 or 68.5% for programs and the Parking Lot revenue is 41.6% collected or $35,340. The Rowing revenue is $24,689, which is over 100% collected. The Grant revenues include $57,390, which is 50% of Town Aid Road from the State. Revenues for July that are not reflected within the reports include: Town Clerk fees of $12,963 and Building Dept. fees of $8,199.
Board of Finance Meeting August 16, 2011
Mrs. Stajduhar detailed the July 2011 Financial Report notes for the Expenditures and highlights include: The Assessor’s Contract Services paid $11,725 (Quality Data - $4,175 and Vision Appraisal - $7,550). The Tax Office Contract Services paid $6,179 to Quality Data for tax software and printing. Under Insurance, $69,126 represents two months worth of Medical and Dental payments. Public Works Vehicle Fuel paid out $14,428 (2,400g regular and 1,400g diesel). Parks and Recreation seasonal wages amounted to $26,518 for summer programs. Within the Capital, General Government - Hains Park $7,910 is for the York Rake and new sand. Capital expenditures under Public Works included a dump truck with plow for $74,736 from Nutmeg International, $9,400 for paving of Flat Rock Hill,
Browns Lane and Mile Creek Roads under the Contractors line, and $4,399 for wood guardrails in Lords Meadow.
New Business
Approve Carryovers to FY2012: Mr. Griswold highlighted the carryovers to FY 2012 stating that there are two carryovers from FY2008 for the Academy Lane Fire dock ($17,400) and the Rogers Lake Dam ($74,300), totaling $$91,700. The Capital budget carryovers included $1,200 for Town Hall use, $40,300 for the R-10 Registry within the Land Use budget. There was a final amount of $900 for the Rogers Lake Study and $6,987 for the GIS upgrades within the Information Technology area. The Sound View Parking Lot study Capital is $2,500. Septage Facility improvements are $32,200 and $15,000 is for the Refuse/Recycling carts purchases. The Fire-Rugged laptops in the amount of $5,900, were requested to be carried over and the Police bathroom improvements were also requested for $2,000. Under Public
Works, Homestead Circle and Town Woods overlay equaled $10,800. As well as the Public Works, McCurdy Road culvert repair for $60,000.
Approved for FY10-11: Operating carryover for FY2011, Selectman’s mileage amount is $934, Payroll Consultant is $4,000 and Selectman’s Miscellaneous is $539. Under the Info Tech., GIS school for two individuals is $4,000 and Animal Control Internet hookup allocation is $2,000. The Board of Finance Clerk amount is $513. The Tree Commission – Contracted Services amount is $9,500. Land Use carryover within its operating budget represents: $1,700 for ZBA Legal, $2,000 for Land Use Printing and, $1,690 for Education/Training. Under Public Works; Clean Catch Basins is$12,900 and Blacktop is $6,000 Operating carryover to FY 2012. Parks and Recreations carryover includes Town Woods Contract Maintenance for $6,000. The Fire Department requested a $12,900 for
Ladder Testing and Fire classes for $1,800. All remaining unspent budget items requesting carry over included $1,650 for Rogers Lake, $7,100 for Church Corner improvement, $3,200 under the Federation of Beaches for Security of Miami Beach. Total FY2011 for Operating equaled $72,576 and the Total Carryover to FY2012 (FY2008 Carryover, FY2011 Capital and FY2011 Operating) totaled $342,063.
Board of Finance Meeting August 16, 2011
After discussion, a motion was made by Mrs. Sturges, seconded by Mr. Devoe to carry over $14,000 from the Info Tech consultant line for an independent contractor to study the Info Tech Department. After further discussion, a motion was made by Mr. Woolley, seconded by Mr. Deove to alter the Roger’s Lake request of $1,650, deducting $1,230, therefore leaving $420, within the Rogers Lake study.
A motion was made by Mrs. Sturges, seconded by Mr. Garvin, and passed unanimously to approve $350,833 for the total carryover to FY2012. Motion carried.
Transfers
Mrs. Stadjuhar highlighted the transfers.
A motion was made by Mr. Garvin, seconded by Mr. Woolley, and passed unanimously, to approve $146,869 for transfers.
Mr. Griswold stated that a discussion regarding a promotion of a Public Works employee needs to be added to the agenda. Therefore, a motion was made by Mr. Kerr, seconded by Mr. Devoe to add the promotion of a Public Works employee discussion be added to the agenda under New Business. Motion carried.
New Business
Mr. Griswold stated that Brian Lorentson joined the Public Works department in January of 2002 as a Maintainer I. Mr. Adanti urged Mr. Lorentson to obtain his CDL license so that he would be able to operate one of the larger dump trucks for snow plowing during the winter and for other jobs, as necessary. Mr. Lorentson has secured his CDL license, at his own expense, and Mr. Adanti is recommending that he be promoted to the position of Maintainer II. The Public Works Union Contract states that, in order to be a Maintainer II or III, the employee must have a CDL license. However, the contract is silent about whether the Town must promote a Maintainer I employee to Maintainer II, once the employee obtains a CDL. The difference between a Maintainer 1 and a Maintainer II is $6,427 annually. Mr. Adanti requests that, in view of Brian’s excellent work record and his initiative to obtain his CDL, that Mr. Lorentson be promoted to a Maintainer II level. After extensive discussion,
it was decided that Mr. Lorentson be promoted to Maintainer II and that, in accordance with the Union Contract, he be compensated at 90% of the prevailing Maintainer II rate until 30 June 2012.
Board of Finance Meeting August 16, 2011
A motion was made by Mr. Devoe, seconded by Mr. Kerr and passed unanimously to approve promoting Mr. Lorentson to the Maintainer II level with a wage rate of 90% of the current rate for a Maintainer II, with his hourly rate of $18.43. The motion was made with the provision of the Union Contract of 90%. Motion carried.
Old Business
Ryefield Manor and Lymewood Tax Abatement Update
Mr. Griswold distributed a Lymewood and Ryefield Manor financial summary. He stated that he met with Kathy Murphy, President of Lymewood Elderly Housing, Inc, and Kathleen Koch, Administrator of Lymewood with Board of Finance representative, David Kelsey, to discuss the Lymewood tax abatement. Mr. Griswold summarized Lymewood demographics stating that Lymewood consists of 24 units in six buildings plus a common building. Twenty units are under the jurisdiction of HUD and 4 under Rural Development. In calendar 2010, rent from tenants was $89,374 (avg. of $310/month) and rental assistance income was $94,130 (avg. $327/month). In 2010, vacancy amounted to $18,538 or nearly 10% of the rental income. This, is in spite of a waiting list of 65 people. It appears the high vacancy rate is
caused by the inability of Lymewood to rehabilitate the units quickly, once they have been vacated.
Mr. Griswold stated that Lymewood employs a management company and has a maintenance contract. Please refer to the Financial Comparison handed out previously (attached). The complex had a loss of $60,414 in 2010 and a loss of $63,562 in 2009. Depreciation was $52,230 and $50,335 in those same years.
Lymewood had two mortgages totaling $933,700 with debt service in 2010 of $57,700. The Replacement Reserve stands at $47,500 and there is a Betterment for Tenants Reserve of $43,200.
Recommendations from Mr. Griswold and Mr. Kelsey: 1. Lymewood be required to deposit the Town’s tax abatement into its Replacement Reserve and withdraw funds for major repairs or capital projects. 2. Lymewood must renegotiate the interest rate on its second mortgage (currently 5.375%). A 2% reduction could save $8,000 per year. 3. Turn the vacant units more rapidly, reducing the vacancy by at least 5%, which could save over $9,000. 4. Provide Ryefield Manor a FY2012 tax abatement of 50% (about $11,000) for the second half of the year. 5. Require both Lymewood and Ryefield to provide the Board of Finance their audits for 2011 and their budgets for 2012. 6. Require Ryefield to go out to bid on its maintenance contract and consider the same for all management and maintenance contracts for both
complexes, and, 7. Base each year’s tax abatement on the Town’s financial analysis, with the understanding that the tax abatement is not guaranteed.
Board of Finance Meeting August 16, 2011
It was recommended that the issues outlined above be carefully considered, before and during the next budget season (FY2013) for both Lymewood and Ryefield Manor. Going forward, the tax abatement benefit will not be guaranteed from year to year and that all items, except item #4, will be communicated to the complexes.
A motion was made by Mrs. Sturges, seconded by Mr. Woolley, to communicate items 1-6 to the management of the complexes, with the exception of item #4, and to revisit the tax abatement issue in the next budget season. Motion carried.
Other Business
Nothing to report.
Selectman’s Office
The 17 town CT River Council of Elected Officials (CRVCEO) comprised of the Chief Elected Official from each town, voted to request the CT Office of Policy and Management (OPM) to designate the CRVCEO as a Council of Governments (COG). The State seeks to reduce the number of regional planning agencies from 15 to less than 10, so consolidation is inevitable, similar to what happened with the Probate consolidations. Once the details are worked out, each town would be required ratify the vote of its CEO. In the case of Old Lyme, this would be done at a Town Meeting. Lower CT Valley Selectmen’s group, is discussing combining town groups, such as was done with local Probates, therefore, combining towns, less staff necessary, with the same benefits. By participating, the town may be able to
control its own destiny. It would need to be presented before a town meeting, perhaps in October.
The Police boat has been resurrected and operational. This was possible because of many voluntary hours and Town funds of less than $3,000 from the FY11 Marine Patrol line item.
Board of Finance Meeting August 16, 2011
Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, September 20, 2011 at 7:30 p.m.
Mr. Griswold stated that the Board of Selectmen discussed two personnel matters in its Executive Session. Mr. Rose spoke about his FY11 actual hours versus the budget. He said that all the things for which he is responsible cannot be done within the 20 hours allotted.
A motion was made by Mr. Garvin, seconded by Mr. Woolley to enter into Executive Session at 10:10 pm to discuss personnel matters. Mr. Kerr recused himself and departed. Motion carried.
A motion was made by Mrs. Sturges, seconded by Mr. Garvin to adjourn the Executive Session at 10:57 p.m. Motion carried.
A motion was made by Mr. Woolley, seconded by Mrs. Sturges to adjourn the regular meeting at 10:58 p.m.
Respectfully Submitted,
Michele Hayes-Finn
Secretary
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