BOARD OF FINANCE
Minutes
Tuesday, March 26, 2013
Present:~Regular Members:~ Andrew Russell, Wayne Devoe, Christopher Kerr, Janet Sturges, David Woolley
Alternate Members:~ B.J. Bernblum, Bob Jose, David Kelsey
Bonnie A. Reemsnyder, First Selectwoman (ex-officio); Nicole Stajduhar, Finance Director; Mary Jo Nosal, Selectwoman, joined the meeting in progress at 8:10pm
Absent:~~Regular Members: H. P. Garvin, III,
Alternate Members: None~~
Guests: Dave Prickett, Woodard & Curran; Kurt Zemba, Chair Wastewater Management Task Force; Kathleen Murphy and Eileen Coffee, Lymewood; Kimberly Drelich, reporter, The Day
Call meeting to order
Chairman Andy Russell called the meeting to order at 7:02pm.
A motion was made by Janet Sturges, seconded by David Woolley, to seat alternate David Kelsey as a voting member at the 3/26 meeting in the absence of regular member H.P. Garvin. Motion passed.
A motion was made by David Woolley, seconded by Janet Sturges, to recognize Kathleen Murphy regarding the proposed Lymewood tax abatement following the Wastewater Management Task Force presentation. Motion passed.
Presentation from the Wastewater Management Task Force
First Selectwoman Bonnie Reemsnyder explained that the Wastewater Management Task Force has recommended and the Selectmen have chosen Woodard & Curran of Cheshire to conduct a feasibility study on the potential for wastewater management alternatives to service the shoreline communities.
The study must follow an aggressive timeline per DEEP requirements. Because testing must be performed in April and early May, a Special Town Meeting to approve funding for the study has been scheduled for April 9.
Task Force Chair Kurt Zemba provided a brief history of the circumstances leading up to the formation of the Task Force and RFQ process. Two Old Lyme beach associations are under consent order from the DEEP to comply with current wastewater management standards. Those associations are investigating the cost and procedure to hook up to the New London Wastewater Treatment Facility. When the consent order(s) became known, the Town’s WPCA engaged the services of Lombardo & Associates to identify any potential for sewer alternatives.
The Lombardo study indicated that viable alternatives may exist and offered preliminary data on potential sites for alternative systems. The Woodard & Curran feasibility study will provide answers to remaining questions regarding possible sites and possible alternative systems.
The feasibility study is eligible for 55% Clean Water Fund reimbursement. Of the estimated $185,000 study cost, only $18,000 is ineligible for grant funding.
Dave Prickett, the Woodard & Currant engineer working with the Task Force, described the New London sewer option as a regional solution to wastewater management. Alternative systems, using in-Town locations, represent a local solution. In both instances, a pipe is installed to carry waste to another location. The local solution may provide environmentally friendly options, including the re-use of treated water.
On-site testing of specific sites will be conducted to determine available capacity. Much data on the capacity needs of the 1400 shoreline dwellings is already available. The study will evaluate both cost and non-cost factors of four potential alternatives: a conventional system with a pumping station; a low pressure/grinder pump system; a vacuum system; and a STEP/STEG system.
If approved at Town Meeting on April 9, the feasibility study will begin immediately. Results will be presented and discussed at several public meetings. If an alternative system is deemed both feasible and more cost-effective than sewer hook up, the system design could take place in 2014 with construction scheduled for 2015-2016.
Chairman Russell referred board members to handouts distributed at the meeting (attached to minutes). He encouraged members to attend the Public Presentation on March 30 or watch the presentation on Public Access Channel 14.
Lymewood Tax Abatement
Kathleen Murphy, Lymewood president and Eileen Coffee, Lymewood Board member, were present to ask the Board to reconsider its decision to reduce Lymewood’s tax abatement from 100% to 50%.
Mrs. Murphy explained that Lymewood operates on a calendar year basis and a tax payment is not included in their 2013 Budget. While a $10,000 to $20,000 abatement would have no significant impact on the Town budget and mill rate, she said, it would have a huge impact on Lymewood. Rental rates are set and capped by HUD with residents paying only 30% of their net incomes. The Lymewood Board has limited control over their budget and generally handles unanticipated expenses by funding them over the course of multiple years. She believes that HUD will not increase its subsidy to Lymewood to make up any local tax abatement difference.
If the abatement has to be reduced, she asked if it could be reduced to only 75% in 2013-2014, instead of 50%; and, if Lymewood could pay their tax bill in January, instead of July, with no penalty. Mrs. Murphy also questioned if Lymewood might be eligible for a lower tax assessment, based upon its status as subsidized affordable housing.
Finance Director Nicole Stajduhar will discuss the tax due date with the Tax Collector. First Selectwoman Bonnie Reemsnyder will discuss it with the Town Attorney.
Approval of March 12, 2013 Minutes
A motion was made by David Kelsey, seconded by David Woolley, to approve the minutes of March 12, 2013 as written. Motion passed.
Wrap Up
Finance Director Nicole Stajduhar distributed Budget documents. Revised Five Year Capital Budget
A Summary of Approved Budgets, a total of $32,934,689, representing an increase over the current year of $251,840. 2012 Grand List Totals
The estimated mill rate based on the current proposed budget is 19.35, up from 19.26.
The Budget shown for Regional District 18 is based upon student totals on October 1. Those numbers are subject to revision based on a student count scheduled for April 1.
The budget totals reflect an increase from 13% to 13.5% for non-union employee insurance contributions, a $5,000 increase; and a sick buy-back at 50%, or $17,000.
Finance Director Stajduhar said that the insurance and buy back have no significant impact to the mill rate. First Selectwoman Reemsnyder asked that the sick buy back be restored to 100%.
The consensus of Board of Finance members was to keep the Tax Collection rate at 98.25%.
Board members discussed the Lymewood tax abatement, expressing a desire to be fair to both Lymewood and Ryefield. The question of when the tax must be paid still needs to be answered.
The next Board of Finance meeting will be at the Public Hearing on April 22. Chairman Russell said any Budget item can be revisited at the Hearing and following it, until the Annual Budget Town Meeting on May 20.
A motion was made by David Kelsey, seconded by Janet Sturges, to change the abatement for both Lymewood and Ryefield to 75% for 2013-2014. Wayne Devoe stated that letters regarding the approved budget amounts to both agencies should emphasize that the 75% is for that budget year only. Members concurred. Motion passed.
Janet Sturges stated that Finance Director Stajduhar deserves credit for the accuracy and efficiency of Town finances and the budget process.
Other Business
First Selectwoman Reemsnyder stated that the call of the April 9 Special Town Meeting will include a request for funding of $27,300: $25,000 for parking kiosks and $2,300 for a reconfigured parking design for the Soundview area. In response to a question, she stated that signage costs are included in the appropriation.
Adjourn
A motion was made by Janet Sturges, seconded by David Woolley, to adjourn. Chairman Russell adjourned the meeting at 8:49pm.
Catherine Frank
3/27/13
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