Minutes of the Board of Finance meeting held on Tuesday, March 31, 2009 at 7:00 p.m. at the Old Lyme Memorial Town Hall.
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Present:Regular Members: Andrew Russell, Wayne Devoe, H. P. Garvin, III,
Janet Sturges, David Woolley
Alternate Members: Anne Coburn, David Kelsey, Judy Read
Timothy C. Griswold, First Selectman, ex-officio,
Nicole Stadjuhar, Finance Director
Absent: Regular Members: Christopher Kerr
Alternate Members:
Guest: Bonnie Reemsnyder, Selectwoman
Skip Sibley, Selectman
Regional School District #18 Superintendent Elizabeth M. Osga
Regional School District #18 Board of Education Treasurer, Nan Salvino
Open Space Chairperson, Diana Atwood Johnson
Open Space Vice-Chair, George James
Old Lyme Conservation Trust President, Anna Silberberg
Ted Kiritsis, Open Space Committee Member
David McCulloch, Old Lyme Conservation
Evan Griswold, Old Lyme Conservation Trust
Milton Allen, Old Lyme Resident
Mary Jo Nosal, Old Lyme Resident
Jon Mittelman, Old Lyme Resident
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Mr. Russell called the meeting to order at 7:03 p.m.
Board of Education Budget Presentation
Superintendent Osga outlined the Regional School District #18 budget: Highlights during the past year include implementation and refinement of electronic portfolios at middle and high school levels, renewal of district technology plan as well as completion of new homework guidelines.
The facilities accomplishments include the approval of high school renovation project, pre-construction phase of the high school renovation project, the start of construction of new track, which is funded predominately by a memorial donation. Communication has improved in way of an expanded use of district website and the addition of a district web-based newsletter.
Superintendent Osga stated that the 2009-2010 budget reflects a comprehensive set of program and operational adjustments. The adjustment elements include staffing reduction and restructuring.
The notable features include music and physical education schedules to be revised to a net reduction between .2 - .4 teaching positions, Middle school academic teams to be restructured with a reduction of four teaching positions, High school special education programs will be restructured reducing one special education teaching position. Other position reductions include the areas of an assistant principal at the Middle school level, instructional assistant assignments, and custodial rescheduling.
A question was asked on the average class size. Ms. Salvino stated that the class size in the Middle School is between 20-22 pupils per class.
There are no new staffing or programs being added to the 2009-2010 budget. The total budget for the Regional School District #18 is $28,197,791, an increase of $480,724 or a 1.7% increase.
Impact to the Towns: The Old Lyme share of the District budget will decrease from 80.4% in FY09 to 80.3% in FY10. The District’s budget excess as of 30 June 08 was $548,245 as compared to $383,853 in FY07. Old Lymes share of the excess was $439,892 in FY08 and $306,699in FY07. After subtracting the budget excess, the billing to Old Lyme for FY10 will be $22,551,994 versus $22,326,280 in FY09. Ms. Salvino was not able to forecast what t he budget excess will be at the end of FY09.
Public Comment – Open Space
Mr. Kiritsis recommended that the funding of Open Space be made an agenda item for the Town Budget Meeting. Mr. Griswold stated that the Land Acquisition ordinance specifies that the Land Acquisition Fund appropriation must be part of the Town budget.
Mrs. Atwood Johnson stated that in the past the voters have shown their support of the annual $75,000 of Open Space and that there should not be a cap on the amount accumulated for Open Space. She stated that the Open Space Committee must prioritize potential land purchases and there presently are two long term negotiations in the process. Mr. Garvin commented that two board members were not present to hear the original Open Space presentation and appreciates the Committee’s energy and efforts on behalf of the Town. Mrs. Atwood Johnson stated that not only is Committee committed to preserving land, but also to assist the Town with land needs, such as finding a place to process leaves.
Mr. Griswold asked what other amounts are due to be paid to the Open Space fund. Mrs. Atwood Johnson stated that the fund is due about $25,000 from “payments in lieu of the 15% open space requirement and another $75,000 from the Aawa subdivision, off of Lords Meadow Road. She said the $75,000 has a lien behind a mortgage and other liens.
Mrs. Nosal thanked Mrs. Atwood Johnson and the Committee for all their efforts and requested the support of the townspeople towards Open Space. Ms. Silberberg stressed the importance of Open Space; it increases tax income, as homes next to open space have an economic benefit. Open space provides fresh drinking water by protecting the watershed throughout the town through green corridors. Mr. Allen stated that he would be willing to pay additional taxes for Open Space. He said it is responsible looking ahead. He thanked the Griswold family for their past generosity throughout the years towards Open Space. Mr. James presented facts from surrounding towns on how they funded Open Space. Many have established lines of credit for open space purchases. Mr. Mittelman commented that Open
Space is important for future generations of the Town. Mr. Evan Griswold said watershed protection has become more critical and will be more so in the future. Mrs. Reemsnyder stated that since there hasn’t been a Selectmen’s meeting since the last Board of Finance meeting, she wanted it noted that she is in favor of keeping the $75,000 in the budget for Open Space.
Mr. Russell thanked everyone for their comments and stated that the Board approved $75,000 for Open Space on February 3rd. While there has been discussion by the Board about reducing the amount, no action has been taken.
Mr. Russell stated that since there is a regular member absent this evening, a motion was made by Mr. Garvin, seconded by Mr. Devoe to have Ms. Read vote for Mr. Kerr in his absence. Motion carried.
Revenues
Mr. Griswold highlighted the proposed budget for fiscal year 2009-2010, Draft D. He stated that, depending on whether the Public Works Union Contract is ratified, the medical cost sharing amount may change.
Expenses
The Fire Protection charge will reduce to $24,000 because the town has been overcharged by CT Water by about $1,500 a year. Draft D funds Open Space at $40,000, which is what the Board suggested at its last meeting.
Mr. Griswold stated that the changes in Draft D for FY2009-2010 will increase General Government expenses 0.13%. If Open Space is funded at $75,000 and Public Works wages are factored in, the increase will be about 0.92%.
The average Tax Collection percentage rate over the last nine years is 98.77%. Mrs. Stadjuhar stated that through February, the Tax Collector has collected 97.4% of total taxes with four months left of the fiscal year. There was discussion about what rate should be used in FY10.
If the collection rate were 98.0% versus 98.7%, the impact on the mill rate would be about 0.1 mills. Due to the uncertainty about State funding (could be 10-15% less than the Governor’s numbers), it was recommended that we use 98.0%.
Budget Overview Discussions
Mr. Russell stated that there are four proposed budget scenarios that have been discussed.
Mrs. Sturges commented that last week she proposed that Open Space budget be cut from $75,000 to $40,000. She has now changed her position and feels that the full $75,000 should be budgeted.
A motion was made by Mr. Devoe, seconded by Ms. Read to remove $18,000 from the Fireworks line item. Voting in favor of the motion were Mr. Devoe, Ms. Read, Mr. Garvin and Mr. Woolley. Mrs. Sturges voted against the motion.
Mr. Devoe made a motion to take $18,000 from the Parking Lot fund and move it into the Open Space line item. There was no second for the motion.
There was a discussion and it was recommended to remove the medical cost sharing revenue and reduce the medical expense line by the same amount.
Minutes of March 17, 2009 Meeting
Minutes of March 17th were reviewed.
A motion was made by Mr. Garvin, seconded by Mr. Woolley to approve the minutes as written. Mr. Devoe abstained, as he was not present at the meeting. Motion carried.
Minutes of March 24, 2009 Meeting
Minutes of March 24th were reviewed. A typographical error on page 2, first sentence of last paragraph, add an “a” before the word “request” and the word “and” before the word “therefore”. On page 3, first sentence, add the name “David” before “Griswold”. A correction was noted to the fourth sentence on page three, to change “weekend” to “week” as two hours during the week are included in the total hours.
Page 3, under Debt Services, fifth paragraph; fourth sentence the words “only a” should be added between “and” a “nominal growth….” On, page 4, a typographical error to Mrs. Sturges who made the motion to adjourn the meeting, not Mr. Sturges as written.
A motion was then made by Mrs. Sturges, seconded by Mr. Devoe and passed unanimously to approve the minutes as modified. Ms. Read abstained, as she was not present.
Other Business
Mr. Griswold stated that he received correspondence from the Old Lyme Fire Department stating that the OLFD had approval for $5,000 in the FY2008 capital budget to replace or repair the outboard motor on an inflatable boat. The letter stated that because repairs to the boat proved to be unpractical, the Fire Department used its funds to purchase a new boat for $4,270. During this process, other problems arose with the purchase that caused billing to be delayed. Therefore, the OLFD neglected to ask that the funds be carried over to FY2009. The Fire Department is now requesting approval of $4,000 to fund repairs to the outboard motor. This item will be discussed next week.
Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, April 7, 2009 at 7:00 p.m. Final budget adjustments will be discussed. The Board of Finance Public Budget Hearing is scheduled for Monday, April 20th, at 7:30 p.m. at the Lyme-Old Lyme Middle School. The Town Budget Meeting is scheduled for Monday, May 18th at 7:30 p.m. at the Lyme-Old Lyme Middle School Auditorium at which there will be a vote on the Town budget for fiscal year 2009-2010, assuming the Regional School District #18 budget is approved on May 5th.
A motion was then made by Mr. Woolley, seconded by Mr. Devoe and passed unanimously to adjourn into Executive Session at 9:10 p.m. to discuss the Public Works Union Contract.
A motion was then made by Mrs. Sturges, seconded by Mr. Garvin and passed unanimously to come out of Executive Session at 9:49 p.m.
A motion was then made by Mr. Garvin, seconded by Ms. Read and passed unanimously to adjourn the meeting at 9:50 p.m.
Respectfully Submitted,
Michele Hayes-Finn
Secretary
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