Minutes of the Board of Finance meeting held on Tuesday, March 17, 2015 at 7:00 p.m. at the Old Lyme Memorial Town Hall.
Present: Regular Members: Andrew Russell, BJ Bernblum, H. P. Garvin, III,
Christopher Kerr, Janet Sturges, David Woolley
Alternate Members: David Kelsey, Gil Soucie
Bonnie A. Reemsnyder, ex-officio
Nicole Stajduhar, Finance Director
Skip Sibley, Selectman
Absent: Regular Members:
Alternate Members: Bob Jose
Guest: Harold Thompson, Chairman, Planning Commission
Todd Machnik, Planning Commission
Kurt J. Zemba, Chairman, Water Pollution Control Authority (WPCA)
Douglas Wilkinson, Budget Coordinator, Water Pollution Control Authority (WPCA)
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Mr. Russell called the meeting to order at 7:00 p.m.
A motion was made by Mr. Garvin, seconded by Mr. Woolley to move approval of minutes up on the agenda. Motion carried.
Approval of March 03, 2015 Minutes
The minutes of March 3rd were reviewed. Under Absent members, Mr. Kelsey should be listed under Absent Alternate member.
There being no other corrections noted, a motion was made by Mr. Woolley, seconded by Mr. Bernblum, to approve the minutes of March 3rd, as corrected. Motion passed.
Approval of March 10, 2015 Minutes
The minutes of March 10th were reviewed. Because there was a revised set that not everyone had in their possession, the minutes were tabled until the next meeting.
A motion was made by Mr. Woolley, seconded by Mr. Garvin to move Lymewood and Ryefield Manor Tax Abatements up on the agenda.
Lymewood and Ryefield Manor Tax Abatements
Mrs. Stajduhar stated that last year a 75% tax abatement was granted. Mr. Russell stated that the tax abatement amount for Lymewood is approximately $16,000 and Ryefield Manor is approximately $16,000 as well.
A motion was made by Mrs. Sturges, seconded by Mr. Bernblum to continue 75% tax abatements for the upcoming year for both entities. Motion carried.
A motion was made by Mrs. Sturges, seconded by Mr. Woolley to go back to the top of the agenda to WPCA. Motion carried.
202-0220 Water Pollution Control Authority (WPCA)
WPCA Chair Kurt Zemba and Budget Coordinator Doug Wilkinson presented the WPCA’s proposed budget. Mr. Wilkinson stated that four of the line items: Legal ($45,000), Consultant/Testing ($12,000), Engineering Consulting ($25,000), and Wages comprise 94% of the total budget of $115,492. The Wastewater Management Consultant Project relates to DEEP Compliance Requests and Preparation for Resubmitted Plan Estimated by engineer, D. Prickett, anticipating DEEP actions. There was a discussion on WPCA and wastewater project related expenses. Mr. Zemba stated that the WPCA authorizes invoice payments and defers to the Finance Director for all accounting and banking matters. It was suggested that the Boards of Finance and Selectmen and the Finance Director meet with the WPCA to detail financial practices
and procedures. After discussion, it was decided to move the storm water testing and consultation out of WPCA’s budget and into the Health Departments’ budget, and have the Public Works Director work with the Sanitarian in the Health Department. Mrs. Stajduhar stated that if the WPCA/Health Clerk amounts were removed from the WPCA budget, it would bring the WPCA budget down to $89,300.
A motion was made by Mr. Woolley, seconded by Mr. Bernblum to approve $89,300 for the WPCA budget. Motion carried.
213-1350 Septage Disposal
Mrs. Stajduhar distributed a Septage Disposal worksheet highlighting the last five years’ revenue and expense. Last year, Septage Disposal was within the WPCA’s budget and it will be moved back into General Government. There was a discussion regarding the purpose, which was to have the proper documentation filled out when a pumpout is performed. The Board discussed having an ordinance created for local pumpers that if they perform a pumpout in town, proper documentation would need to be filed with the town in order to monitor septage disposal.
A motion was made by Mr. Garvin, seconded by Mr. Woolley for $100,000 for Septage Disposal.
300 Capital Expenditures/Non-Recurring
Mrs. Stadjuhar highlighted the revised Five Year Capital & Nonrecurring Budget. There was discussion on the various line items that were decreased, eliminated or pushed out another year or so. There was a request to change the Line item for the Police/Fire boat to reflect the collaboration between both departments on seeking an appropriate boat useful to both departments.
A motion was made by Mr. Garvin seconded by Mr. Woolley, to approve $1,006,129 for the Capital Expenditures/Non-Recurring.
100 Revenues
Mrs. Stadjuhar detailed the Revenue for Property Tax, Charge of Services, Investment Income, Intergovernmental and Contributions. She highlighted various line items within the charges for services, investment income, and Intergovernmental revenues. She stated that anticipated Motor Vehicle Supplemental is an increase of $10,000. Based on analysis and submitted budgets, Cell Phone Tower Lease, Senior Center reimbursement from Lyme, Town Clerk ,and Building Department revenues are anticipated to be up and Parks and Recreation, Parking lot, Landfill/Transfer Station are expected to be decreased. She stated that under Intergovernmental, the amounts are estimates from the State. The total Revenue budget is $2,598,230 which does not include the current levy.
FY15/16 Preliminary Budget Summary: The Preliminary Budget Summary included $5,665,445 for General Government with $100,000 for Septage Disposal expense and $89,300 for WPCA, an increase of 5.37%. With Salaries, FICA and Capital ($996,129) added, the subtotal is $9,732,561. Regional School District #18’s budget anticipated increase is $350,887 from last year, or 1.42%. The total budget ($34,732,561), less Revenues ($2,598,230), the net raised through taxation is $32,134,331, up from $31,078,258, a 3.54% increase.
After a discussion on the impact on the Mill Rate, the Board of Finance recommended using $600,000 of surplus, to be used on Capital projects to offset the mill rate. A motion was made by Mrs. Sturges, seconded by Mr. Woolley to recommend using $600,000 from surplus. Motion carried.
Mr. Russell stated that final calculations cannot be finished until the Regional School District #18 completes their budget process. Therefore, a motion was made by Mrs. Sturges, seconded by Mr. Kerr, to cancel the next two meetings (March 24th and 31st) and to add a Special meeting for Tuesday, April 7th at 7:30pm to complete the budget process. Motion carried.
Mill Rate Calculation
The Total Grand List changed -$46,830,555 or -2.90%, from $1,613,137,480 to $1,566,306,925. The Collection Rate will remain at 98.25%. The net Taxable Grand List will decrease by -$46,011,020 or -2.90%. The Net Property Tax Requirement will increase $1,056,073 or an increase of 3.40%. The addition to the Mill rate is the Tax Relief Elderly, Voluntary Tax Abatement, Ryefield and Lymewood Tax Abatement at 75%. The Gross Property Tax Requirement is $32,254,031, up $1,049,223 or 3.36%. Therefore, the Mill Rate calculation will increase from 19.69 to 20.96, an increase of 6.45% without the use of surplus.
Suspense List
The Suspense List was circulated and reviewed.
A motion was made by Mr. Garvin, seconded by Mr. Woolley to accept the Suspense List in the amount of $15,756.97, as presented. Motion carried.
Financial Reports
Mrs. Stajduhar highlighted the Financial Report for February.
The Expenditures were highlighted. Three insurance claims have been filed because of damage to Public Works trucks during the many storms. To date, Town has spent $25,297 for 2015 Blizzard. FEMA has not declared an emergency yet so reimbursement is undecided. Mrs. Stajduhar informed board that there was interior and exterior damage to the Senior Center because of the ice damming this winter.
Under Hains Park Boathouse, $33,525 for docks came in from donations. If docks had not been included in the initial scope of the project, then it would have had to go before a Town Meeting to designate towards docks because it’s over $20,000. Harbor Management Dredging Study spent $12,000 for DEEP Permits for Black Hall and Four Mile River Road projects.
Mrs. Stajduhar discussed the storm water expense that is presently under WPCA. She had a discussion with the prior Sanitarian as well as the First Selectman and it was decided to move it into the Health Department. Mrs. Reemsnyder explained that the Health Department is responsible for taking storm water samples and then working with Public Works to report and cover associated expenses.
Mrs. Reemsnyder informed the board that the CRRA Tipping fees, for garbage is going up $1, from $62 to $63. However, the good news is that the tonnage volume is consistently going down.
Other Business
Mrs. Reemsnyder stated that legislation is being discussed that would call for a statewide mill rate on all motor vehicles beginning with the 2016 Grand List. The mill rate is to be determined by the Department of Revenue Services which will price all the vehicles, collect and administer the tax, handle to prorates, etc., eliminating the local assessment and collection of Motor Vehicle taxes. This legislation would have a large impact on Assessors’ offices and is expected to be supported by the larger cities and opposed by the smaller towns.
Mrs. Reemsnyder reported on a Bill to eliminate printed Legal Notices in the newspaper. Newspapers will not be able to charge for online submissions..
Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, April 07, 2015 at 7:30 p.m. in the Town Hall Meeting Hall and will be a Special Meeting.
A motion was then made by Mrs. Sturges, seconded by Kerr to adjourn the meeting at 10:30 p.m. Motion carried.
Respectfully Submitted,
Michele E. Hayes
Secretary
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