Minutes of the Special Board of Finance meeting held on Tuesday, January 6, 2009 at 7:30 p.m. at Old Lyme Memorial Town Hall.
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Present:~ Regular Members:~ Andrew Russell, Wayne Devoe, H. P. Garvin, III,
Christopher Kerr, David Woolley
Alternate Members:~ Judy Read, Janet Sturges
Timothy C. Griswold, ex-officio, Doris C. Johnson, Finance Administrator
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Absent:~~~~~~~~~~~ Regular Members:~ Mark Diebolt
~~~~~~~~~~~~~~~~~~~~~~~~~Alternate Members:~~Ruth Roach
Guest: Ron Nossek, Auditor
John Bysko, Town of Old Lyme Treasurer
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~~Mr. Russell called the meeting to order at 7:32 p.m.~
Kostin Ruffkess
Ron Nossek from Kostin Ruffkess discussed the Preliminary Draft of the Annual Financial Report for Year Ending June 30, 2008 and highlighted the management discussion and analysis for the year. The assets of the Town exceeded its liabilities at the close of the 2008 fiscal year by $13,266,975. Of this amount, $4,490,441 (unrestricted net assets) may be used to meet the Town’s ongoing obligations to citizens and creditors. He stated that the Town’s total net assets increased by $837,165. The most significant reasons for the increase were the substantial additions to capital assets in excess of depreciation expense and scheduled debt principal payments on long-term debt. As of the close of the fiscal year, the Town’s governmental funds reported combined ending fund balances of
$1,992,110, a decrease of $2,300,095 in comparison with the prior year. This was primarily due to the Town Hall Expansion project. He stated that at the end of the 2008 fiscal year, unreserved fund balance for the general fund was $3,240,461, or 11.1% of total general fund expenditures and transfers out. The Town’s total long-term obligations increased by $615,204 (47.3%) during the 2008 fiscal year due to the increase in the estimated landfill closure and post-closure costs.
When comparing FY2008 to FY2007, property taxes (including interest and liens) increased by $842,857 (3.2%) during the year. This increase is due to increased spending as approved in the adopted budget. The Capital and operating grants and contributions for governmental activities increased by $698,659 due to increase in state grants relating to the Town Woods Phase II project. Mr. Nossek stated that Education increase was substantially due to the Regional School District #18 budget increase of $591,941 (2.82%). Public Works expenses decreased by $409,788 due substantially to lower labor demands on the department due to weather and road repairs. Sanitation increased by $1,546,803 due to the increase estimate of the landfill closure and post closure care costs. Other increases in
expenses closely paralleled inflation and growth in the demand for services.
Board of Finance Meeting January 6, 2009
Mr. Nossek highlighted the Town’s financial statement findings. He stated that the Town does not prepare complete financial statements and notes to the financial statement in preparation of the audit in accordance with generally accepted accounting principles. He said that the Town, as many other small Towns, does not maintain a sufficient complement of personnel with appropriate skills, training and industry specific experience in the selection, application and implementation of generally accepted accounting principles commensurate with financial reporting requirements.
Mr. Russell stated Mr. Diebolt will not be present this evening, therefore a motion was made by Mr. Garvin, seconded by Mr. Devoe to have Ms. Read vote for Mr. Diebolt in his absence. Motion carried.
Church Corner Project Appropriation
Mr. Griswold stated that the Town has been awarded a $425,000 STEAP Grant to assist in funding the Church Corner project. The Church Corner plans have been completed and are on the agenda to come before the town for approval at the Annual Town Meeting on January 26th. Original plans have been modified and reworked to address some of the concerns that were expressed by area neighbors. Mr. Griswold stated that the Board of Selectmen voted to appropriate $600,000 from the town’s undesignated surplus account to fund the road, sidewalk and related expenses.
A motion was made by Mr. Garvin, seconded by Ms. Read to appropriate a sum, not to exceed $600,000, from the Town’s undesignated surplus account to fund the road, sidewalk and related expenses associated with the Church Corner Project located at the intersection of Lyme Street, Ferry road and McCurdy Road. It is understood that a Small Town Economic Assistance Program (“STEAP”) grant in the amount of $425,000 has been approved by the State of Connecticut for this project. Motion carried.
The next Board of Finance meeting will be held next Tuesday, January 20th at 7:30 p.m. at the Memorial Town Hall.
A motion was made by Mr. Devoe, seconded by Mr. Woolley and passed unanimously to adjourn the meeting at 9:05 p.m.
Respectfully Submitted,
Michele Hayes-Finn
Secretary
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