Minutes of the Board of Finance meeting held on Tuesday, March 18, 2014 at 7:00 p.m. at the Old Lyme Memorial Town Hall.
Present: Regular Members: Andrew Russell, BJ Bernblum, H. P. Garvin, III,
Christopher Kerr, Janet Sturges, David Woolley
Alternate Members: Bob Jose, David Kelsey
Bonnie A. Reemsnyder, ex-officio
Nicole Stajduhar, Finance Director APPROVED
Mary Jo Nosal, Selectwoman
Absent: Regular Members:
Alternate Members:
Guest: Kurt J. Zemba, Chairman, Water Pollution Control Authority (WPCA)
Attorney Andrew W. Lord, Murtha Cullina LLP
Ed Adanti, Public Works Director
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Mr. Russell called the meeting to order at 7:00 p.m.
Water Pollution Control Authority (WPCA)
Mr. Zemba summarized the status of the Wastewater Treatment Project and the changes in the financial management of the WPCA that will be implemented as a result of the project. The Old Lyme WPCA, in accordance with Chapter 103 of Connecticut General Statutes, Subsection 7-246, and the OLWPCA Ordinance passed on March 28, 1995, as codified in Code 16-9, the operating budget of the OLWPCA should be in the form of an “Enterprise Account” separate from the municipal budget of the Town. Unless financial allocation is requested by the WPCA of the Town of Old Lyme, its budget is subject only to the approval of the WPCA itself. It is the intention of the OLWPCA to operate in accordance with all laws and regulations.
The OLWPCA, pursuant to the unanimous agreement of its chairman and members, intends to prepare and operate its budget and conduct its financial operations at all times with the advice and counsel of the Old Lyme Boards of Selectmen and Finance, and to have its accounting books and records maintained and monitored by the Town’s Financial Office as well as the Board of Finance. Chairman Zemba stated that in the future the Town would be reimbursed for those accounting services from operating revenues. It is the WPCA’s belief that this collaborative process will provide both oversight and a check and balance system that will prevent financial mismanagement or abuse and create a transparent process that will enhance the Authority’s credibility with town residents. It is intended that this process will
be outlined in the WPCA’s Bylaws and that it will in no way impair the independence of the WPCA as intended by the CT General Statutes and Town ordinance, and the WPCA intends to continue to confer with the Board of Finance each year.
For the upcoming fiscal year, all WPCA-related revenues and expenses will be moved into its own budget. The estimated excess of expenses over revenues, in the amount of $111,100, will require the Town’s funding. However, to the extent that these expenses, or those funded by the Town in future years, are attributable to the Wastewater Management Project, they will be repaid to the town from future operating revenues. Mr. Kelsey suggested that any shortfalls, no matter their attribution, funded by the Town should be repaid by the WPCA revenues begin to exceed their expenses. Mr. Kelsey suggested that such shortfalls to be repaid be memorialized in an agreement between the WPCA and the Town of Old Lyme. Mr. Zemba agreed that the WPCA would reimburse shortfalls funded by the Town of Old Lyme to the
extent legally permissible, and that the WPCA would work with the Town to document an agreement establishing the commitment.
A motion was made by Mr. Garvin, seconded by Mr. Woolley, to approve $111,100 for the new WPCA budget. Motion carried.
300 Capital Expenditures/Non-Recurring
Mrs. Stadjuhar highlighted the Five Year Capital & Nonrecurring Budget. She itemized various Capital items within the Info Tech lines. Parks & Recreation has requested funding for general improvements to buildings and resurfacing two basketball courts. The Lyme Arts Association has the second annual installment of $10,000 for its building repairs and renovation project. The Lyme Academy of Fine Arts has requested $8,360 for computers and software for Digital Studio. The Rogers Lake Authority proposed budget included 50% of $5,000 for benthic mats to kill weeds, $35,000 (50%) for site suctioning/harvesting and mats, 50% dredging of Hunington Bay ($130,000), and a boat purchase request of $5,684.50. The Senior Center request included replacement of carpet, dishwasher,
furniture, covered porch ($20,000) and door opener, all 25% reimbursed by Lyme. Sound View requested a town property survey, high water waterfront survey, and a kiosk at the town parking lot. Town Hall Improvements included art maintenance, general improvements and F, F & E (furniture, fixtures and equipment). Public Works requested $5,000 for small equipment replacement, a computerized sander unit, replacement of the Loader purchased in 1988 and refurbished in 2009, which includes $15K trade-in value. Streetlight replacement is included under Public Works. The Fire Department proposed budget includes an installment for two tanker replacements, a fire/rescue boat, air bottles, portable radios and Thermal Imaging Cameras ($6,500 each). Emergency Management requested a town-wide public safety radio enhancement system-phase II for $30,000. Public Safety – Police includes a vehicle with accessories, painting of the Police Station, and a
Police boat and vests. Public Works Roads & Projects include sidewalks from Town Woods Park to the Boston Post Road and a section of Mile Creek Road. Reconstruction of 3,900 feet of Buttonball Road North and Outside Contractors are also included. There was a $15,000 multi-year request from the Historical Society Capital Campaign for the Grange Building renovations.
Mrs. Stajduhar stated that the Capital Expenditure Committee met several times to discuss the individual requests and stated that the Senior Center painting will be deferred and the roof replacement cost will be split among three years due to the additional expenses relating to the new well. It was decided to defer the Sound View survey until the park project is completed, as some surveys will be included in the Sound View Improvement project. The Capital Expenditure Specialists discussed removing the following items: Rogers Lake Authority lake suction harvesting (50% of $70,000) and dredging of Hunington Bay (50%).
The Sound View kiosk and the Senior Center covered porch and dishwasher was also recommended to be removed. Under the Fire Department, the thermal imaging camera was cut by half, and the Fire/Rescue boat and the Police boat have been deferred. Mr. Adanti stated that the sidewalks from Town Woods Park to Route 1 can be deferred a year. It was discussed and decided to allocate $5,000 for the Historical Society Grange building during the budget year.
A motion was made Mr. Kerr, seconded by Mrs. Sturges, for $698,635 to be added to the Capital Non-Recurring budget for FY2014/15. Motion carried
Lymewood and Ryefield Manor Tax Abatements
Mrs. Stajduhar stated that the tax is $22,000 for Lymewood and $21,500 for Ryefield Manor. Lymewood operates on a calendar-year basis. Ryefield Manor was built with a CHFA grant and does not have a mortgage, unlike Lymewood. Also, Lymewood is controlled by HUD and Federal regulations. 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.
A motion was made by Mrs. Sturges, seconded by Mr. Woolley, to grant a 75% tax abatement to both Lymewood and Ryefield Manor for the upcoming year. Motion carried.
Suspense List
The Suspense List was circulated and reviewed.
A motion was made by Mr. Bernblum, seconded by Mr. Woolley, to approve the Suspense List in the amount of $21,431.62. Motion carried.
Approval of March 04, 2014 Minutes
The minutes of March 4th were reviewed. A correction was noted to the spelling of Frank Pappalardo, Chairman of Sound View Commission.
There being no other corrections noted, a motion was made by Mr. Kerr, seconded by Mr. Garvin, to approve the minutes of March 04, 2014 as written/modified/corrected. Motion passed.
A motion was made by Mrs. Sturges, seconded by Mr. Bernblum, to add discussing and approving the March 04, 2014 minutes to the agenda.
Approval of March 11, 2014 Minutes
The minutes of March 11th were reviewed. Under Guests on page 1, Ned Perkins is President and William Donovan is Vice President. Lynn Warren is Business Manager and not the Business Director.
There being no other corrections noted, a motion was made by Mrs. Sturges, seconded by Mr. Woolley, to approve the minutes of March 11, 2014 as corrected. Mr. Kerr abstained. Motion passed.
Old Business
Mrs. Stajduhar stated that at the last Board of Finance meeting, there was discussion of a Public Works employee increasing his classification from a Maintainer II to a Maintainer III. The Salary Committee met and made a recommendation to approve compensation at 90% of the Maintainer III level for the fiscal year, adding an additional $3,300 to the budget.
A motion was made by Mrs. Sturges, seconded by Mr. Garvin to approve an increase of $3,300 for salary, pension and FICA for Public Works wages. Motion carried.
New Business
Registrar’s Request: Mrs. Stajduhar explained that the Registrar’s canvassing the voter’s list requires an expense in the amount of $600. In addition, the Registrar received a letter from the State on a Maintenance Contract for the three voting machines that the Town owns at $200 per machine.
A motion was made by Mrs. Sturges, seconded by Mr. Kerr, to approve the addition of $1,250 to the Registrar’s budget for Maintenance. Motion carried.
Roger’s Lake Boat Request: Mrs. Reemsnyder stated that more information was received regarding the Roger’s Lake boat request. As previously discussed, the present boat is old and in need of repair, and repair quotes received are in excess of $5,000. A used boat (2008, 17’ Triumph with a 60 horsepower engine) in good shape, with a trailer, is available at Reynold’s Garage and Marine for $13,369, and Reynolds will allow a $2,000 trade-in for the old boat. Mrs. Reemsnyder has had numerous conversations with Lyme First Selectman Ralph Eno, who is in favor of purchasing the used boat, and has agreed to split 50%-50% the remaining balance of $11,369.
A motion was made by Mr. Bernblum, seconded by Mr. Kerr, to approve $6,000 from this year’s current Capital budget for half of the boat expense. Motion carried.
Mr. Adanti stated that a public works generator is old and needs to be replaced. He explained that there are additional funds that can be used to purchase a new generator in the Truck Equipment Leasing line.
A motion was made by Mr. Kerr, seconded by Mrs. Sturges, to take $3,200 from the Truck Equipment Leasing line for the generator. Motion carried.
Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, March 25, 2014 at 7:00 p.m. in the Town Hall Meeting Hall. Next week’s schedule includes: Revenues, Mill Rate Calculation, and Wrap Up.
A motion was then made by Mrs. Sturges, seconded by Mr. Kerr, to adjourn the meeting at 10:20 p.m. Motion carried.
Respectfully Submitted,
Michele E. Hayes
Secretary
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