Meeting Date and Time: Tuesday, April 12, 2016 at 7:30 PM
Old Lyme Memorial Town Hall, Old Lyme, CT 06371
Minutes of the Board of Finance meeting held on Tuesday, April 12, 2016 at 7:30 p.m. at the Old Lyme Memorial Town Hall.
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Present:~~~Regular Members:~ Andrew Russell, Chairman; Bennett Bernblum, Janet Sturges, David Woolley
Alternate Members:~ Adam Burrows, Robert Jose, David Kelsey,
Also present: Bonnie A. Reemsnyder, First Selectwoman; Timothy C. Griswold, Treasurer;
Nicole Stajduhar, Finance Director; Skip Sibley, Selectman; Sue Campbell, President, Board of Directors, Lymes’ Senior Center; Bob Pierson; Diane Blackwell, Chair, Friends of Lymes’ Senior Center 501c3 non-profit; Tom Risom, Chief, Old Lyme Volunteer Fire Department
Absent:~~Regular Members: H. P. Garvin, III, Christopher Kerr
Call to Order
Chairman Andy Russell called the meeting to order at 7:32pm. In the absence of regular members Christopher Kerr and H.P. Garvin, he requested a motion to seat alternates David Kelsey and Robert Jose as voting members for the meeting. Motion made by Janet Sturges, seconded by David Woolley. Motion passed.
Chairman Russell requested a motion to move up Other Business as the first item to be considered. Motion made by Janet Sturges, seconded by David Woolley. Motion passed.
Other Business
Senior Center Donation – opinion letter
First Selectwoman Bonnie Reemsnyder reminded Board of Finance members of a $125,000 donation to the Lymes’ Senior Center in a will that was handled for a private client by Town Attorney Marylin Clarke. The check was written to the “Old Lyme Senior Center,” & has now been deposited into a town fund, separate from the General Fund. The Friends of the Lymes’ Senior Center, a 501c3 organization, requested that the donation be given to them. Because of the conflict of interest with our Town Attorney, the First Selectwoman requested a legal opinion from Old Saybrook’s Town Attorney, Mike Cronin. She provided Attorney Cronin with a copy of the towns’ agreement with the Senior Center. She distributed copies of his opinion letter and members reviewed it.
The First Selectwoman said Attorney Cronin’s recommendation is that a check should not be written to a private group, and that the donated funds should be spent at recommendation of the Senior Center Board of Directors.
Janet Sturges suggested that Attorney Mike Cronin may not be fully aware of how the Friends group was conceived and how they operate. She asked what would happen if the Senior Center Board of Directors voted that the donation should be put in the care of the Friends. The First Selectwoman believes that is specifically what Attorney Cronin has not recommended. She believes the towns should not use the donation for capital expenses, but rather in support of programs, special events, and activities that the towns would not normally fund, upon recommendation by the Senior Center Board.
Board of Finance members agreed that Lyme’s portion of the donation (25%) should not be handled differently. The First Selectwoman will discuss this with Lymes’ First Selectman, Ralph Eno. First Selectwoman Reemsnyder believes the donation should be handled as part of the town budget process, with entries for revenue and expenditures.
There was discussion about how to handle the donation. B.J. Bernblum asked if Town Meeting authorization is needed to transfer the donation to a special fund for the benefit of the Lymes’ Senior Center. The Senior Center Board would then prepare budget for the towns’ approval and include requests for funding from the donation in the proposed budgets. Adam Burrows asked if the Town uses exchange accounts. Finance Director Nicole Stajduhar said the Town does not, but does use a separate revenue fund to account for these types of revenues. Mr. Burrows asked if the Senior Center has its own Tax ID, and the Finance Director confirmed it does not. Treasurer Tim Griswold questioned if this discussion would be necessary had the will been written “Lymes Senior Center.” Selectman Skip Sibley offered the Boathouse
docks as an example of a project funded by donations and not included in the town budget.
Bob Pierson advised the Town to be cautious about including Senior Center programming in the Town budget, saying the Senior Center is supposed to fund its own programs. Diane Blackwell said the Senior Center Board needs to complete the process of planning for the future, which includes establishing the Senior Center as a business. She asked for clarifications about the procedure for requesting use of the donation.
Chairman Russell agreed that a procedure is needed. Selectman Sibley said we need guidance on a policy for accepting and redistributing donation(s). Bob Pierson added that any policy should not discourage donation. The First Selectwoman asked if the $125,000 needs to be addressed at a Town Meeting. Mrs. Stajduhar was asked to consult with the town’s auditors on these questions and come back with a recommendation to the Board of Finance. Diane Blackwell stressed that the Lyme Boards of Selectmen and Finance also need to be involved with the discussion. Chairman Russell suggested a possible joint meeting in June.
First Selectman Reemsnyder stressed the importance of consensus on the part of the Boards of Finance and Selectmen that the donation will not be used for regular expenditures.
Fire Dept. Budget Overage
Tom Risom, Chief of the Old Lyme Volunteer Fire Department, requested reallocation of the Fire Department budget. He explained that the Fire Department had a budget surplus of $40-50,000 from the prior year, and intended to request carryover funds to complete four projects:
- Setting up a fitness room at Cross Lane
- Renovating a duty truck
- Upgrading information technology equipment at all 3 stations
- Renovating the Lyme Street offices
Chief Risom said he had incorrectly treated the projects as one, instead of as four separate projects, and is now faced with the need to reallocate funds among line items in the OLFD operating budget.
Chairman Russell said he met with Mr. Risom to emphasize the importance of operating within the approved budget. The Fire Department is always welcome to come back to the Board of Finance as situations change to request budget adjustments. Board members mentioned problems in prior years with funds being used for unbudgeted items. Adam Burrows suggested the Fire Department add an adjustment column to their internal budget records. Finance Director Nicole Stajduhar observed that other town departments would also benefit from an internal system to help track expenditures. The Board of Finance takes action on requested budget transfers after year end.
Selectman Sibley suggested that simple operating procedures be drafted to spell out policies and procedures for the benefit and current and future personnel. Mr. Risom agreed that the Fire Dept. will draft an SOP. Chairman Russell said a Facilities Manager for the Town, as proposed in the new budget, will help manage facilities maintenance issues for the Fire Dept. No action needed by the Board of Finance, who agreed that the Fire Dept. budget could be reallocated.
Middlesex Hospital Paramedic Service request
First Selectwoman Reemsnyder distributed a letter she received requesting $1 per capita from the Town for the Middlesex Hospital Paramedic Service. She invited a Middlesex representative to attend the Board of Finance meeting but received no response. She said Middlesex is asking 19 towns to fund $1 per capita to cover a budget shortfall. Middlesex states it is no longer able to sustain the loss of State revenue. The funding due from Old Lyme would be $7500.
The letter indicates that Middlesex would bill Medicare patients $584 for service if the towns do not pay the requested fee. Middlesex attended a recent RiverCOG meeting, and half of the COG’s 15 member towns indicated they will fund the request. Middlesex has agreed to set up an oversight board that would include seats for CEOs from some of the towns it serves.
Because of our location, Old Lyme can choose between Middlesex and Lawrence & Memorial for its PSA (paramedic service agreement). The First Selectwoman contacted L & M and believes they would charge $2 per capita. L&M requested $2 per capita funding from the six towns it serves, received none, and has indicated that they will impose a fee on any new towns.
Mr. Bernblum asked if Middlesex is fairly reimbursed for their actual service costs. The First Selectwoman said reimbursements are determined by a bundling agreement at the following rates: Basic life support $606: Medicare allows $292; Ambulance Assn receives $257. Advanced life support: $1288: Medicare allows $465; Paramedic Service receives $73.50; Ambulance Assn receives $392.
Chairman Russell requested a list of the towns opting in and out of the Middlesex request. The First Selectwoman listed East Haddam, Essex, Durham, Chester, and Westbrook as towns that agreed to fund. Board members suggested reaching out to the towns that did not agree. Ambulance Chief Carrie McCarthy has confirmed that 90% of ambulance patients in Old Lyme are transported to Middlesex, typically the Westbrook Clinic. Board of Finance members questioned how many Old Lyme ambulance calls actually involve town residents and how many are related to I-95 incidents.
Mr. Bernblum believes it is not acceptable for Middlesex to bill Medicare patients $600. Selectman Sibley questioned if Middlesex will not bill patients if they receive funding from the town. David Kelsey said more information is needed in order to make an informed decision. Noting that L&M requested funding from 6 towns and received funds from none, he wants Old Lyme to negotiate with Middlesex before agreeing to pay.
The First Selectwoman said she would like to see Middlesex’s paramedic budget (a $2 million annual expense). Mr. Burrows suggested that she also request a copy of the contract.
Mrs. Stajduhar has identified extra funds in the FY16/17 budget under Insurance that could cover the requested $7500. Board of Finance members discussed which budget line would be most appropriate for the paramedic expense. Chairman Russell stated that action on the request is not needed immediately. If the Board of Finance decides to include the request in the budget, the Finance Director has identified a line item as the funding source. The question is: should we be paying anything?
A motion was made by Janet Sturges, seconded by David Kelsey, to budget $10 for Middlesex Hospital Paramedic Service under Ambulance: Contracted Services. Motion passed.
Chairman Russell asked the Finance Director to reduce the line item under Ambulance for fuel/other by $10 to keep the department budget total unchanged for FY16/17.
Approval of Minutes from the March 22nd, 2016 meeting
Mrs. Sturges requested the following correction to page 2, paragraph 1, 2nd sentence under 100 Revenues: “She noted anticipated Charge for [not of] Services increases…….”
Mr. Bernblum requested the following correction to page 1, paragraph 1, 2nd sentence under Parks and Recreation Commission: “…the Commission can come before the Board at any time with a request for legal counsel and funds may [not will] be allocated at that time.”
A motion was made by Janet Sturges, seconded by Robert Jose, to approve the minutes of March 22, 2016 as amended. Motion passed. Mr. Kelsey abstained.
FY 2016/17 Budget Summary
Mill Rate Calculation
Finance Director Nicole Stajduhar distributed and reviewed the proposed Budget.
The original proposed budget was $34,916,729, an increase of $160,088.
The final budget proposal is $35,208,538, an increase of $451,897. She said this is largely due to District 18’s final numbers & Capital Requests, including the Academy Lane Fire Dock, Public Works salt shed, and Senior Center HVAC. The proposed budget shows a 1.3% increase over the prior year.
The Operating budget is down, largely due to reductions in the salary lines for Public Works and the Police Department. The WPCA budget has also been reduced. District 18’s impact to towns is reported as: 79.2% Old Lyme 20.8% Lyme – the same percentages as last year.
Revenues are reduced due to State cuts to $1,914,468, a 26% decrease after taking into account the $600,000 the Town used from surplus in FY15/16. Total taxes required are increased 3.53% over the prior year. The mill rate will increase to 21.59 (20.62 in the current year).
ECS funding from the State was originally $605,000 in current year, reduced to $595,000 for 16/17, and was reduced to zero just today. Mr. Burrows called the 100% reduction ridiculous.
Chairman Russell noted the State could make changes by May, but we need to budget $0 for now. If surplus will be applied to the budget, Mrs. Stajduhar would prefer to fund specific capital projects. As of 6/30/15, the Town’s surplus was at 20%. The auditors’ recommended percentage is 15. We would need $600,000 from surplus to make up for the ECS shortfall.
Lyme will lose $150,000 from ECS, and First Selectman Eno has already asked the Superintendent of Schools to look for ways to cut the District 18 budget. Selectman Sibley suggests sending the same message to the Superintendent from Old Lyme. Treasurer Griswold suggests asking District 18 to cover half of the anticipated $600,000 deficit. He asked what percentage of the town’s revenue comes from the State and suggested calling a Leadership Meeting to discuss the budget shortfall.
The First Selectwoman read an email from Selectwoman Nosal recommending reducing budgets from town departments that historically don’t spend their allotted budgets. She opposed using surplus to fund facility maintenance, and suggested increasing the tax collection rate to the average of the past 5 years.
Mr. Kelsey said he is reluctant to apply funds from surplus to the budget, because it is important for residents to see the results of overspending. He expressed concern over the lack of detail in District 18’s budget presentations and over the District’s response to unfunded mandates. He said we will continue to have budget shortfalls and we have to prepare people for the future. He is prepared to support using $600,000 from surplus if it is properly attributed to the loss of revenue from the state.
First Selectwoman Reemsnyder reminded the Board that Towns can’t increase their budgets more than 2.5% without being penalized by the State. Chairman Russell said the Board of Finance has previously discussed using surplus to mitigate a budget increase and reduce the impact to taxpayers.
A motion was made by David Kelsey, seconded by Janet Sturges to use $600,000 in surplus to offset the loss of anticipated state funding for 2016-17. Motion passed unanimously.
With the application of surplus, the new mill rate will be 21.2.
Mrs. Stajduhar will put together a power point for Monday’s Budget hearing and get it to Chairman Russell by Thursday.
Selectman’s Report
First Selectwoman Reemsnyder recounted that she received a $31,000 quote from Mountzoures for exterior work to the Town Hall, but the contractor misunderstood the job requirements. He submitted a revised quote of $39,760 following an on-site walk with Building Official John Flower and Public Works Superintendent Ed Adanti. The Board of Selectmen subsequently decided it was best to develop a Request for Proposals on the project. The RFP will include a mandatory pre-bid site visit.
The Hains Park Boathouse project has received ZBA approval and will be presented at a Zoning Commission hearing in May. They hope for May approval from Zoning and would go out to bid shortly thereafter.
The Marine Patrol unit is due by Memorial Day.
The Sound View Improvement final design has been submitted to DOT. Interviews for the construction inspector are scheduled for Thursday, and construction is on track to start after Labor Day.
A Rogers Lake Weeds permit application has been submitted to the DEEP.
Dredging has been completed and there is a balance of $200,000 in the project fund. Although we would like to be able to use those funds for a survey, we anticipate that we will have to return the balance to the State.
NEC Futures: BJ Bernblum, John Forbis, Sam Gold (RiverCOG) and the First Selectwoman met with five representatives of the Federal Railroad Administration, which committed to no aerial structure. This would mean a tunnel through the Connecticut River. They agreed to gather information from RiverCOG and the National Audubon Society about the impact of a tunnel. They expect to make their decision this summer, with a published report due in the fall. If option 1 is not selected, they will remove the designation from their map. The First Selectwoman will share a letter recapping the meeting as soon as it is finalized.
She added that out of 3,000 comments received about the DC to Boston route, 1200 were from Old Lyme.
She recently attended a CCM Legislative Update and said CCM works hard to minimize impact to towns. She believes the fee we pay to CCM is well worth it.
Treasurer Griswold said it will be important as we approach construction on the Hains Park and SV Bike Path projects that committees provide project budget statements that include lines for all functions and budgets for those functions, with bills applied against the budgets. He said for the safety of the town, discipline must be applied to the projects to help us analyze costs. As an example, he said the Boathouse architect was supposed to cost $35,000.
Adjourn
A motion to adjourn was made by Janet Sturges at 10:13pm, seconded by BJ Bernblum.
Minutes Prepared from Recording
Catherine Frank
4/14/16
NOTICE: Messages to or from the Town of Old Lyme domain are subject to the Freedom of Information statutes and regulations.
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