Minutes of the Board of Finance meeting held on Tuesday, August 18, 2009 at 7:30 p.m. at the Old Lyme Memorial Town Hall Meeting Hall.
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~Present:~~~~~~~~~ Regular Members:~Andrew Russell, Wayne Devoe, H. P. Garvin, III,
Christopher Kerr, Janet Sturges, David Woolley
Alternate Members:~ Anne Coburn, David Kelsey
Timothy C. Griswold, First Selectman, Ex-officio
Doris Johnson, Finance Administrator
Nicole Stadjuhar, Finance Director
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Absent:~~~~~~~~~~~ Regular Members:~
~~~~~~~~~Alternate Members:~ Judy Read
Guests: Bonnie Reemsnyder, Selectwoman
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~Mr. Russell called the meeting to order at 7:32 p.m.~ Mr. Russell stated that Ms. Read will not be present this evening.
Minutes of July 21, 2009
The minutes of July 21st were reviewed. On page two, first paragraph, there was a typographical error to the word unusable. A correction was noted in the second paragraph, last sentence, to add the word “annual” after $22,000. Page four, second paragraph, fourth sentence, add the words “per year” after $50,000.
There being no other corrections noted, a motion was made by Mr. Devoe, seconded by Mrs. Sturges and passed unanimously to approve the minutes as modified.
Chart of Accounts
Mrs. Stadjuhar outlined the FY 2009 actual revenues versus the budget and noted there was an unfavorable variance of $126,225. She then outlined the FY 2009 actual expenses versus the budget and noted there was a favorable variance of $508,478. During the fiscal year, additional appropriations from surplus were made, totaling $539,350. The following shows the impact on surplus.
Beginning surplus (1 July 2008) $3,240,461
Additional Appropriations - 539,350
Carryover - 439,825
Unused carryover + 129,619
FY2009 Favorable Variance + 382,253
Ending Surplus (6/30/09) +2,773,158
FY 2010 Budget $2,773,158/$31,046,444 8.93%
(See attached Exhibit I)
Board of Finance Meeting August 18, 2009
During the month of July (FY2010), the tax collector has collected 48.93% of the property tax current levy, and tax interest and penalties, and motor vehicle registrations.
Carryovers FY2009
Mr. Griswold detailed the proposed carryovers to FY2010 (see attached list). It was noted that the Park and Recreation pick up truck that was requested was not purchased during the past budget year. There was a discussion on why the Park and Recreation truck has taken 18 months to purchase since it was approved back in May of 2008. The Senior Center carryover represents a new fridge for the Lyme Senior Center instead of carpet replacement.
A motion was made by Mr. Garvin seconded by Mr. Kerr and passed unanimously to approve the Grand Total carry over to FY 2010 of $439,825. Motion carried
Mr. Russell stated that he received three letters of thanks for the support received from the town from the Florence Griswold Museum, the Literacy Volunteers and the Lyme Academy of Fine Arts.
Old Business
Bus Barn Appropriation – Project Financing of $675,000:
Mr. Griswold distributed several bus barn financing documents and funding scenarios. The Town’s cost to operate the facility includes insurance of approximately $1,000 and a $5,000 Reserve for Replacements. When factoring in recovering the construction cost estimated at $675,000, Mr. Griswold said debt service over an approximate 20 period at a 4.00% interest rate would amount to about $60,000 per year. Rent from the bus company is forecast to be $50,000 for a minimum of ten years. The Town has a ten year commitment from the school to locate the bus activity at the Four Mile River site. Given the longer payback requirement, Mr. Griswold will ask the school to commit for twenty years. He explained some Town options for funding the bus barn. The Town could borrow the
funds, appropriate them from surplus or “borrow” them from other funds. Given the relatively small amount and the long-term payback, it does not make sense for the town to borrow the funds. Given that the Town’s surplus is forecast to be less than 9%, taking funds from surplus would adversely impact that percentage. Mr. Griswold recommended borrowing funds from designated accounts (see attached Exhibit II) and taking $100,000 from surplus. The appropriation must be approved at a Town Meeting. The facility needs to be completed by July 2010, when the present bus contract expires.
A motion was made by Mr. Garvin, seconded by Mr. Kerr to recommend the appropriation of $675,000 to Town Meeting to be held on Monday, August 24th. Motion carried.
Board of Finance Meeting August 18, 2009
Federation of Beaches Request
Mr. Griswold stated that, at the last Board of finance meeting, the Federation of Beaches requested an appropriation of $500 to refund the $500 deposit it lost on the aquatic ATV.
Mr. Woolley stated that he congratulates the officials of the Federation of Beaches for being forthright in admitting deposit was lost. Mr. Woolley made a motion seconded by Mr. Devoe to deny the request for $500 for the Federation of Beaches. Motion carried.
New Business
Town Woods Park Maintenance Contract: Mr. Griswold explained that Ron Tyler of Country Lawn and Garden, the current grounds maintenance contractor at Town Woods Park, has offered to extend his contract at no increase for three years (from July 2010 to 30 June 2013). Because of the amount ($110,000), it was agreed this should go out to bid, even though there is no price increase.
Selectman’s Report
Church Corner: Mr. Griswold stated that Church Corner is about two weeks behind schedule. Though the drainage has been completed, it had to be redesigned to accommodate two fiber-optic cables and cement conduits pipes that were discovered. American Industries has been shaping the road surface in preparation for laying down the binder course of pavement. American Industries will be delivering and installing the granite curbing shortly.
Public Works Garage: The contract with Delta Building has been signed and the pre-construction meeting is scheduled. The project should be completed in October, as it is a forty-five day project.
Old Lyme Designated as a Preserve America Community: Old Lyme has been approved as a Preserve America Community, one of 11 communities in CT, (and 760 in the U. S.) to receive this designation. The Historic District Commission applied for the designation to recognize Old Lyme’s commitment to preserving its history, and to make additional grant funds available to the town.
Stoneleigh Knoll Drive Drainage Issues: There was a meeting held to discuss the drainage problems in the Stoneleigh Knoll Drive area. Water does not drain properly and residents have problems with water ponding in the area. The open ditch drainage system that was put in place 40 years ago is no longer working properly because of development and people installing small drains to make ponds. There will be a site walk to evaluate to see what is causing the problem.
Board of Finance Meeting August 18, 2009
Thomas Heinssen – Sworn in as 5th Police Officer: Thomas Heinssen has been sworn in as the town’s 5th Police Officer. He will be starting in mid-September, after completing some course work. He retired from the State Police June 30, and has worked in Old Lyme in the past as our Trooper Sergeant.
Bob Pierson, President of the Old Lyme fire Department, sent Mr. Griswold a letter requesting the Department be reimbursed 100% of the expenses associated with the Memorial Day parade held in 2008. Mr. Griswold sent him a letter explaining the Town has consistently budgeted $2,500 for this and that the Department has generously underwritten the balance.
There is a Special Town Meeting set for Monday, August 24, 2009 at 7:30 PM at the Middle School. Items on the agenda will include the Bus Barn Appropriation of $675,000, an Amendment to the Building on Unaccepted Roads Ordinance and the Acceptance of Briar Hill Drive as a Town Road. Mr. Griswold is researching whether or not Briar Hill road was already accepted at a prior Town meeting with the condition that the Town receives a deed to the road parcel from the developer.
A motion was then made by Mr. Kerr, seconded by Mr. Devoe and passed unanimously to adjourn the meeting at 9:20 p.m.
Respectfully Submitted,
Michele Hayes-Finn
Secretary
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