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Minutes of the Board of Finance meeting held on Tuesday, January 20, 2015 at 7:30 p.m. at the Old Lyme Memorial Town Hall Meeting Hall.
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Present:~~~~~~~~~~ Regular Members:~ Andrew Russell, Bennett Bernblum, H. P. Garvin, III,
Christopher Kerr, Janet Sturges, David Woolley
Alternate Members:~ Bob Jose, David Kelsey, Gil Soucie
Bonnie A. Reemsnyder, ex-officio
Nicole Stajduhar, Finance Director
Mary Jo Nosal, Selectwoman REVISED
Absent: Regular Members:
Alternate Members:
Guest: Kurt Zemba, Chairman of the WPCA
Atty. Andrew Lord, Attorney for the WPCA
Kimberly Drelich, Reporter for The Day
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Mr. Russell called the regular meeting to order at 7:30 p.m. Mr. Russell stated that since Mr. Bysko wasn’t present, a motion was made by Mrs. Sturges, seconded by Mr. Woolley to move the WPCA discussion under New Business up on the agenda to accommodate guests. Motion carried.
New Business
WPCA Report: Mr. Zemba informed that board that the WPCA made a motion to table any action by the Waste Water Management project until such time that the economics of the project can be fully evaluated by the WPCA and other municipal stakeholders, such as the Boards of Selectmen and Finance, and any other involved parties. Mr. Zemba, along with Atty. Lord explained the changing requests of DEEP actions, misdirection and lack of commitment, along with inability to effect East Lyme and New London Agreements. He stated that the Old Lyme Coastal Wastewater Management Plan that was submitted to the DEEP in December 2014 was withdrawn due to the incurrence of unanticipated additional unallocated costs incurred to address the DEEP’s requests for additional information and the
potential unknown additional costs that could be incurred to address other project uncertainties. The withdrawal does not constitute a termination of the project and will allow the WPCA additional time to further evaluate the potential fiscal implications of the project going forward. Mr. Zemba discussed with the board certain outstanding invoices and unbilled expenses. The WPCA and its counsel intend to negotiate with the DEEP and the engineering firm regarding any obligation the Town may have to pay for services already rendered.
Minutes of the December 16, 2014 Regular meeting
The regular meeting minutes of December 16th were reviewed. Page 3, 4th paragraph, last sentence, change the expiration date to June 30, 2015. Page 5, 4th paragraph, 3rd sentence, delete the word “project” and replace with “plans and specs”. Next sentence, same paragraph, delete the words “30% completion” in that sentence.
Board of Finance Meeting January 20, 2015
With no further corrections noted, a motion was made by Mrs. Sturges, seconded by Mr. Woolley, to approve the regular meeting minutes of December 16th, as modified. Motion carried.
Review of Monthly Financial Reports
Mrs. Stajduhar highlighted the Finance Report notes for December.
Under Revenues, the Property tax, total tax collections were $217,870 and $3,365,491 respectively. Other Revenues received in December included: State Grant – Pilot for Elderly of $29,422,, Pequot State Grant partial of $5,106, and Veteran’s Tax Exemption Grant for $5,552.
Other funds collected in December included WPCA - $10,960 collected on septage pumping, Social Services received $4,875 in donations, and Hains Park project received $20,000 in contributions.
The Expenditures were highlighted. Within November, Public Works paid out $6,000 for Sand. The OL Fire Department paid $5,904 under their apparatus line for battery charger and rescue truck repair. Within December, Public Works– Vehicle Maintenance line paid out $9,657 for vehicle maintenance ($4,400 for the 2010 International), OL Fire Department – Firefighter classes paid $4,093 for EMSand Fire Fighters School. Other Associations paid out the last half of grants including the Library, LYSB, either Non-profits and Beaches, totaling $478,000.
Under Capital Expenditures, FF&E line paid $8,000 for Selectman’s Office furniture refinishing and carpeting for the Town Hall stairs. Police Vehicle/Accessories paid $4,000 for the sign and electronics of police car.
Other funds included the following: WPCA - $5,700 (November) and $58,000 (December) in expenses for consulting, septage disposal, and employee; Revaluation - $17,004 (November) and $4,943 (December) for a partial payment on contract to Vision Appraisal;.
Budget Overview for FY2015/16
Mrs. Stajduhar gave a preliminary budget summary for the FY15/16 budget season. Overall the total budget is up $1,132,500, or 3.38% over last years approved budget. Projected for RSD#18 is up $351,000 or 31% of the total budget increase (this is an estimated increase of 1.4% based on prior year history). Capital is up $588,100 or 52% of the total budget increase. Public Works Capital includes $400,000 for Rogers Lake Roads, the Mile Creek Bridge project for $100,000, and gas tank removal of $200,000. General Government is up $193,400. Under Salaries, total wages is up $72,000, with Step increase of $7,000, 2% overall increase for Town Hall including Public Works/Police (2.5%) union $51,000 and new positions in the amount of $15,000. Town Hall will have a new line item for
landscaping in the amount of $3,500. Insurance estimates $30,000 decrease with high deductible plan and mix of coverage (to be determined). Unemployment former finance assistant for $6,000. Under the Pension, new TPA $4,000 but RSD#18 will reimburse for a portion. Sound View Commission increase in costs by $6,000 related to moving Sound View from Parks and Rec. Public Works has $8,000 for tree maintenance. Parks and Rec has a cost reduction of $19,000 due to a reduction of staff needed for Sound View Parking lot.
Board of Finance Meeting January 20, 2015
There was $16,000 increase in Town Woods Park field supplies for Little League. Emergency Management has a $7,000 increase for Everbridge reverse 911 system. The Senior Center is an increase in electricity of $10,000. Revaluation increase of $25,000 to fund future projected needs. Recycling increase of $8,000 for an increase in recycling contracted services. Debt services decrease of $6,000 for interest.
New Business
Beach Stipend Recommendations: Mrs. Reemsnyder stated that for nearly 90 years, Old Lyme has paid grants or “stipends” to several private beach associations. The aggregate amount of these stipends for 2015 fiscal year is approximately $101,000. Last summer the Board of Selectmen appointed six town residents representing a cross section of the community, including beach association members, to study the issues in regards to stipends. The committee was to report their investigation and research, including an oral and written presentation from each beach association receiving stipends, concerning the individual association’s annual budget and expenditures, its use of the stipend funds, its understanding of the historical basis for the stipends, and its rationale for continuation of
the stipends. The committee also was to investigate the practices of other shoreline and lake-side communities regarding their payment of similar support to private associations. Mrs. Reemsnyder distributed to the Board of Finance copies of the committee’s report to the Board of Selectmen dated December 1, 2014, as well as copies of the Board of Selectmen’s report to the Board of Finance, approved on December 16, 2014, which adopted substantially all of the committee’s recommendations.
The committee’s report included the following. Based on the information gathered by the committee and its own understanding of the relevant facts, the committee found that the stipends awarded were used for road maintenance, beach cleanup, and private security, which have the effect of maintaining the beaches in a manner that reflects positively on the Town and reduces policing costs. No other towns were found to provide similar annual support to private beach associations, although in some cases municipalities have contributed to the cost of fire and police services, maintained independently of municipal services, at some private associations. The committee reached several conclusions and policy determination relevant to the continuation of the stipends; they deemed it fair and appropriate for the
Town to pay the beach associations stipends because their private security guards reduce the Town’s policing cost. This reduction was estimated to be $52,500, based on assumed policing for 15 weeks during the summer months, 14 man-hrs. per day, five days per week at an overtime rate of $50 per hour. The committee agreed that other than security guard expenses, which is the only common expense to all beach associations justifying municipal reimbursement, the other expenses, such as beach cleanup, seaweed removal/disposal, storm damage, insurance, road maintenance or snow plowing should not be the burden of non-association taxpayers. Those expenses are expenses inherent in the ownership and operation of private property, benefiting primarily the association property owners and should not be the kinds of expenses incurred by other taxpayers throughout the town. The Committee did find that special circumstances exist in some beach associations that justify
stipends in addition to the policing stipends described above. The proximity of Miami Beach to Sound View Beach and the public parking justify a contribution toward beach maintenance and security expenses incurred by that association, totaling $10,250. The committee recommends that no stipend be given to Miami Beach because of public use of Pond Road but, instead, the Town enter into an agreement with the association regarding maintenance of the portion of Pond
Road between Hartford and Portland Avenues. White Sand Beach Association incurs additional road maintenance and security expense due to public access to the beach and town parking area. The committee determined that a reasonable contribution to these expenses would be an amount equal to the taxes that
Board of Finance Meeting January 20, 2015
currently would be levied on the Town’s beach property were it not exempt ($4,800), plus a nominal amount for security ($1,000), offsetting the expense incurred for monitoring Town beach stickers. The committee recommends that this amount be held constant until the next review period.
The availability of the Rogers Lake West Shores Association community center, free of charge, to non-profit organizations and as an emergency respite center does benefit the community at large and justifies a modest grant ($3,000, about 16% of its current year variable expense). The committee recommends that this item be removed from the beach association stipends and considered by the Board of Finance as a special grant in consideration of Rogers Lake West Shore Association’s agreement to continue such availability of the community center. Total recommendation for the Beach Associations is $81,000.
Mrs. Sturges stated that going forward, the word “Stipend” should be replaced by the word “Grant” as it is a more accurate description of the funds.
New Business
Mrs. Reemsnyder stated that Mr. Roberge, the Emergency Management coordinator reported that his Deputy Officer exceeds expectations in the Emergency Management efforts for the Town. Mr. Roberge is requesting a stipend of $3,000 annually be allocated for this position. He has requested $1,600 be given twice a year and, because the town is halfway through the fiscal year, he has requested a payment of $800 now and $800 at the end of the fiscal year with the funds being added to the upcoming fiscal budget.
A motion was made by Mr. Woolley with no one seconding the motion. After discussion, Mr. Woolley rescinded his motion.
Old Business
Nothing to report
Treasurer’s Report – John Bysko
Mr. Bysko was not present at the meeting.
Selectman’s Report
Mrs. Reemsnyder reported that the Police Union contract for three years, ending June 30, 2017, was signed at the end of November. Highlights include salary increases of 2.33% for FY2015, 2.5% for FY2016, and 2.66%
for FY2017. In FY2016, base health plan will be High deductible ($2,500/$5,000), with the town funding 50% of deductible (first year payment all on July 1, 2015). The Private duty rates increased from $50 to $55 on Oct. 1st and to $60 on Oct. 01, 2016. The course reimbursement for all members was deleted, however, the grant for Associates degree ($250) and Bachelor’s degree ($500) includes all officers.
Board of Finance Meeting January 20, 2015
John Sieviec has been hired to fill the Sanitarian position. He comes with 25 years experience with the Town of Guilford as a Registered Sanitarian. His background is in soils and he also has performed an extensive number of restaurant inspections. He starts on February 9th at the top step of his salary grid.
The Board of Selectmen has approved the creation of a standing committee called the Solid Waste/Recycling Committee. The Recycling Committee had reported that there is a need for future recycling education as well as enforcement. The Solid Waste Ordinance would also need to be looked at and brought up to date. Mrs. Reemsnyder stated that she will get some ideas on paper for a charge of the Committee and suggested that a Board of Finance representative consider being on the committee as well.
In February the Town will be participating in a celebration called the “Loving Parting”, commemorating 350 years that the towns separated and formed their own colony. The towns participating include Old Saybrook, Old Lyme, Lyme, East Lyme and Salem.
Mrs. Reemsnyder stated that a second Solarize Old Lyme workshop would be held on Monday, January 26th at 6:00 p.m., just before the Annual Town Meeting, at the LOLMS Auditorium and Cafeteria. The Town has reached its first 100 points and will be given a $5,000 grant that can be used for any energy efficient project in the Town. Mrs. Reemsnyder commented that the Senior Center would be a perfect place to install solar panels with its open land and direct solar access.
The Rogers Lake Weed Study has released an informative report stating that the plant life in Rogers Lake is evidence of a healthy lake. Mrs. Reemsnyder stated that the study was the right approach and a final recommendation should be received by mid-February so funds can be included in this years budget.
Mrs. Reemsnyder stated the Randi Frank Consulting has been a great help through these last few months during the search for Finance Director, Sanitarian and the Assistant to the Finance Director. Mrs. Reemsnyder asked her to provide a proposal to assist the Town in the area of Human Resources. A Human Resource line can be added within the Selectman’s Office during the budget process.
Mr. Russell stated that Monday, January 26th at 7:30 is the Annual Town Meeting, with a Solarize Old Lyme meeting at 6:00pm before the Town Meeting. The meetings are being held at the Middle School, in the Auditorium and Cafeteria.
Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, February 3, 2015 at 7:00 p.m.
A motion was made by Mrs.Sturges, seconded by Mr. Woolley to adjourn the Regular meeting at 9:30 p.m. Motion carried
Respectfully Submitted,
Michele E. Hayes
Secretary
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