Minutes of the Board of Finance meeting held on Tuesday, November 20, 2018 at 7:30 p.m. at the Old Lyme Memorial Town Hall.
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Present:~~~~~~~~~~Regular Members:~ Andrew Russell, BJ Bernblum, David Woolley
Alternate Members: Adam S. Burrows, Judith Read, Anna Reiter
Bonnie A. Reemsnyder, ex-officio
Nicole Stajduhar, Finance Director
Mary Jo Nosal, Selectwoman
Timothy C. Griswold, Treasurer
Absent:~~~~~~~~~~~ Regular Members:~ H. P. Garvin, III, David Kelsey, Janet Sturges
~Alternate Members:~
Guest: Ron Nossek, Blum, Shapiro & Company, P.C.
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Mr. Russell called the meeting to order at 7:30 p.m. Mr. Russell noted that three regular members will not be present this evening and Mrs. Sturges requested that Ms. Read vote for her in her absence. A motion was made by Mr. Bernblum, seconded by Mr. Woolley to have Mr. Burrows and Mrs. Reiter vote for Mr. Garvin and Mr. Kelsey in their absence. Motion carried.
Annual Financial Report Draft for Year End June 30, 2018
Mr. Nossek reviewed highlights of the Town’s June 30, 2018 audit results. He described the strict governmental standards that must be followed for municipal audits. The assets of the Town exceeded its liabilities at the close of the 2018 fiscal year by $32,344,852. Of this amount, $12,737,475 (unrestricted net position) may be used to meet the Town’s ongoing obligations to citizens and creditors. The Town’s total net position increased by $1,477,360. The most significant reasons for the increase were the positive general fund operations and capital purchases in excess of depreciation expense. As of the close of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $12,632,384, an increase of $949,821 in comparison with the prior year. The most significant reasons for the increase were the positive general fund operations. At the end of the fiscal year, unassigned fund balance for the general fund was $8,681,456, or 24.2% of
the total budgetary general fund expenditures and transfers out. The Town’s total long-term debt decreased by $320,000 (13.0%) due to annual scheduled debt service payments.
At the end of the current fiscal year, the total fund balance for the General Fund was $10,570,782, an increase of $626,481 from the prior fiscal year, due to favorable revenue from tax collections, government grants and investment income. Those were also complemented by favorable variances in all expenditure functions.
Board of Finance Meeting November 20, 2018
Minutes of October 16, 2018 Regular Meeting
The minutes of October 16th Regular meeting were reviewed. Mr. Bernblum noted several corrections. On page 2, 2nd paragraph, it should be noted that the Economic Development Commission requested $47,000 which did not include the website development cost and audit of $15,000. On page 3, under ‘Old Business’, 2nd paragraph, last sentence, the words, ‘the State and’ between ‘from’ and ‘the’ should be added to that sentence. Under the same section, next paragraph, 2nd sentence, include the words, ‘Memorandum of Understanding’ instead of ‘MOA’ and include to the end of the last sentence the words, ‘and indemnification’ to that sentence. On page 4, 3rd paragraph, within the 1st sentence, under ‘Solar Power Landfill Lease’, change the 1st word in the sentence from, ‘The’ to ‘A’.
There being no other corrections noted, a motion was made by Ms. Read, seconded by Mr. Woolley, to approve the minutes, as modified. Mr. Burrows abstained as he was not present. Motion carried.
Financial Reports
Mrs. Stajduhar highlighted the October 2018 Financial Reports.
Under Revenues, total property tax monthly revenue of $184,442, 55.44% year-to-date collected. Miscellaneous Income - $5,000 Sale of property. Revenues also included reimbursements for Town Woods Park ($6,117), Lymes’ Senior Center ($6,417), and, OL Volunteer Ambulance Association ($2,013). Grants received include ECS ($60,378), State Property ($9,966), and College Property ($33,136).
The percentage of general government revenue budget received to date is 54.6%.
Other revenues include State reimbursement ($3,102) for the Sound View Improvement Project.
Mrs. Stajduhar reviewed the expenditures: Special Deduction – Town first quarter pension ($36,293) contribution, Open Space – Contracted Services ($2,469) for Silverstein Appraisal Services, Public Works – Vehicle Maintenance/Parts – Mal’s ($6,706) for a 2001 and 2009 International, and, Public Works – Project Contractors – Al Bond ($4,150) for catch basins on Jericho Hill.
The percentage of general government budget spent year-to-date, without capital or RSD#18 included, is 36.3%.
Carryovers include the following: WPCA testing – ($20,267) for Woodard & Curran as well as Police car camera ($7,150) and lights ($2,800), Volunteer pension ($9,875) PASI, and WPCA pump out tracking software ($4,740).
Other funds expenditures include WMC engineers ($1,909) for Sound View Improvement Project.
Board of Finance Meeting November 20, 2018
Old Business
Mrs. Reemsnyder stated that the Board of Selectmen approved $44,000 for the Economic Development Commission request to support the CERC proposal. The components funded would include the following:
Survey Existing Businesses - $4,500. to develop the survey, gather information, track responses, analyze the data and make recommendations for action.
Feasibility Study - $27,500. To survey local businesses, analyze industry strengths, challenges, and opportunities.
General on-site Economic Development Support - $12,000 (year), starting when Feasibility Study is complete.
After discussion, it was decided to add this discussion and decision to the December 18th Board of Finance meeting under Old Business. This item will most likely be included in the call of the Annual Town Meeting, scheduled for Monday, January 28, 2019 at the LOL Middle School Auditorium.
New Business
Mrs. Reemsnyder stated that Mr. Parcak said that the furnace replacement and heat pump installation at Lyme Street fire house is near completion and is requesting an additional $5,000 in funding for electrical work, propane piping, HVAC and air handling equipment required to complete the installation. Mrs. Stajduhar stated that the $5,000 could not come out of the General Fund Capital budget, therefore, would have to go to Town Meeting or be paid out of the Public Building Improvement Fund with approval of both boards of Selectmen and Finance.
A motion was made by Mr. Burrows, seconded by Mr. Woolley, to approve $5,000 from the Public Building Improvement Fund for the needed electrical work. Motion carried.
Mrs. Reemsnyder explained that Mr. Parcak stated that an additional $12,300 is needed to complete the spray applied insulation at the Lyme Street fire house. This requirement is due to Building/Fire code requirements for Spray-applied foam insulation in areas containing mechanical equipment that will require service and maintenance. Mrs. Stajduhar stated that the board can approve this as an additional appropriation from General Fund Capital since it is under $20,000 and there is already a budgeted amount for this line item.
A motion was made by Mr. Bernblum, seconded by Mr. Woolley, to approve an additional appropriation of $12,300 from the General Fund Capital. Motion carried.
Mrs. Reemsnyder stated that the Police Station on Shore Road would like to be able to hook up to the CT Water due to high bacteria levels in their water source. The cost to hook up to CT Water is $8,850. Mrs. Stajduhar stated that the funds could be taken from the Building Improvement Fund. Mrs. Stajduhar recommends allocating funds from the Town Hall Improvement fund. It was suggested that the Public Works crew assist with digging, etc. to defray the cost.
Board of Finance Meeting November 20, 2018
A motion was made by Mr. Burrows, seconded by Mrs. Reiter, and passed unanimously to approve $8,850, and have Public Works assist with the digging, etc. Motion carried.
Other Business
Nothing to report.
Selectman’s Report
Solid Waste/Recycling Contract: Mrs. Reemsnyder stated that the committee received four proposals, which range in cost from $520,000 for the first year to $824,000, or $2,175,486 to $3,473,113 for a four year contract. The committee reviewed the four bids and are working on the contract. The draft contract has been prepared and the committee is scheduled to review it next week.
Historic Survey Committee: Mrs. Reemsnyder stated that Heritage Consultants is currently working on the Historic Survey of areas of the town, focusing on characteristics and history of historic properties. Mrs. Reemsnyder hopes to identify approximately 175-200 properties in town.
Hains Park Bathroom: Mrs. Reemsnyder stated that the Hains Park Bathroom Committee is currently working on the Hains Park Bathrooms and there is no news to report on this ongoing project.
Halls Road Improvement Committee: 2nd presentation: The Halls Road Improvement Committee is holding a community meeting and the introduction of design concepts and community workshop on Thursday, December 6th at 7:00 pm at the LOL Middle School Cafeteria. The Yale Urban Design Workshop in conjunction with the Halls Road Improvement Committee has been developing design options based on the community meeting held this past July. On December 6th, the YUDW will present their recommendations and options and then will conduct a design workshop with the attendees in order to stimulate feedback from the public. A working presentation to continue to get feedback from the community.
PGN Library Project: Mrs. Reemsnyder stated that in speaking with bond counsel, he agreed that borrowing the money too early is not recommended as there are limitations on doing so. Therefore, approving the borrowing of the money could be done at the January 2019 Annual Town Meeting, if no other meeting is scheduled prior to that meeting.
Board of Finance Meeting November 20, 2018
Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, December 18, 2018 at 7:30 p.m. in the Town Hall Meeting Hall.
A motion was then made by Ms. Read, seconded by Mr. Bernblum, to adjourn the meeting at 9:15 p.m. Motion carried.
Respectfully Submitted,
Michele E. Hayes,
Secretary
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