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Minutes of the Board of Finance meeting held on Tuesday, March 26, 2019 at 7:00 p.m. at the Old Lyme Memorial Town Hall.
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Present:~~~~~~~~~~ Regular Members:~ Andrew Russell, H. P. Garvin, III, Janet Sturges, David Woolley
Alternate Members:~ Adam S. Burrows, Judith Read, Anna Reiter
Bonnie A. Reemsnyder, ex-officio
Mary Jo Nosal, Selectwoman
Nicole Stajduhar, Finance Director
Absent:~~~~~~~~~~~ Regular Members:~ BJ Bernblum, David Kelsey
~Alternate Members:~~
Guest: Amanda Blair, Co-Chairs, Open Space Commission
Evan Griswold, Open Space Commission
Stephen Tagliatela, Chairman, Board of Trustees, Lyme Academy College of Fine Arts
Mary Biekert,The Day Reporter
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Mr. Russell called the meeting to order at 7:00 p.m., and stated that Mr. Bernblum and Mr. Kelsey cannot attend and have designated Mrs. Reiter to vote for Mr. Bernblum and Ms. Read to vote for Mr. Kelsey in their absence.
Executive Session
A motion was made by Mrs. Sturges, seconded by Ms. Read, to enter into Executive Session at 7:01 p.m, for the purpose of discussing the sale, lease or purchase of real estate. Motion carried.
A motion was made by Ms. Read, seconded by Mrs. Reiter to recommend to Town Meeting the purchase of property as discussed during Executive Session. Motion carried.
A motion was made by Mrs. Sturges, seconded by Mrs. Reiter, to adjourn Executive Session at 7:28 p.m. Motion carried.
Old Business
Lyme Academy of Fine Arts: Mr. Tagliatela explained that with UNH ending its sponsorship of their programs (and responsibility for all expenses) in August, the Academy must reinvent itself or close. Having concluded that they cannot support the entire campus by returning to the Academy’s historical programming, they have been actively seeking a partner for their campus. To date, they have met with numerous colleges and other academic institutions and have not received a viable proposal, but are continuing discussions and awaiting additional proposals that are being formulated. The biggest challenge the Academy is facing is bridging the year between September 2019 (when UNH leaves) to May 2020, the earliest realistic date by which a compatible partner for the campus can be secured. Despite the dire circumstances they are facing, they plan on continuing the summer programs, aiming to increase enrollments to 276 by adding a Middle
Board of Finance Meeting March 26, 2019
School Apprenticeship program to the High School Pre-College offering. Programming for Fall 2019 and beyond will depend upon bringing in a new partner to occupy a portion of the campus or new opportunities that can be accommodated. He stated that since their founding in 1976, they have been an integral part of the Old Lyme community, adding to its long history of being a place where art is taught, made and appreciated. Their endowment totals approximately $7 million, but the majority of it is restricted to scholarships, faculty salaries, and facilities construction. Mr. Tagliatela stated that the estimate of annual costs for general maintenance, utilities, debt service, insurance, and security is approximately $700,000. There was a question on what kind of condition are the buildings in.
Mr. Tagliatela stated the condition of the buildings is presently in good shape. The Academy has requested a one-time special allocation of $90,000, in addition to their annual grant of $12,500. The special request would have to be added to the Capital request.
There was an extensive discussion regarding funding the one-time allocation of $90,000. The sentiment of the board is that if some of the line items (plowing, facilities manager) could be decreased it would decrease the town’s financial involvement. The Board felt that the town shouldn’t fund the one-time special allocation and if and when the day comes that they need additional funding, town residents should weigh in on the decision by way of a Town Meeting. It was decided that there was not enough information provided.
A motion was made by Mr. Garvin, seconded by Mrs. Sturges, to not fund the requests of Lyme Academy of Fine Arts. Motion carried.
Mill Rate Discussion
Mrs. Stajduhar reviewed the Preliminary Budget Summary for fiscal year 2019/2020. She received the Regional School District’s final numbers and Old Lyme’s student represents 80.7% or $27,556,679 billing to the Town. The increased net billing to the Town is $1,213,420 or 4.6% increase. The 2019/20 Preliminary Budget Summary included General Government ($6,819,053) or 9.49%, Salaries ($2,746,305) or 1.87%, Capital ($1,790,250) or 73.17%, Regional School District 18 ($27,556,679) or 14.6%, less Revenue ($3,316,387) or 39.87%. The net amount raised through taxation ($35,595,600) is 4.91%. Mrs. Stajduhar reviewed the mill rate calculations stating the Regional School District’s increase of 4.67% would increase the Mill Rate to 22.93 from 21.91.
Mrs. Stajduhar reviewed the Mill Rate Calculation sheet for fiscal year 2019/2020. The total Grand List, before Board of Assessment Appeals is $1,585,659,738 with the Collection Rate being at 98.25%. The Net Taxable Tax Req. is $35,595,900 with the addition of Elderly Tax Relief ($30,000), Volunteers Tax Abatement ($39,000), Lymewood and Ryefield Manor Tax Abatement at 75% each ($38,000), hope at 100% ($7,000), for a Gross Property Tax Req. of $35,727,900. Mrs. Stajduhar stated with the above calculations, the Mill Rate would be at 22.93, a change of 4.67%.
Lymewood and Ryefield Manor Tax Abatements: Mrs. Stajduhar stated that the Board of Finance has historically given 75% tax abatement to Lymewood and Ryefield Manor. Mrs.Stajduhar stated that the tax abatement amount for both entities would be approximately $21,000 each or $38,000 combined. HOPE’s tax abatement at 100% would be approximately $7,000.
Board of Finance Meeting March 26, 2019
A motion was made by Mrs. Sturges, seconded by Ms. Read, to continue 75% tax abatements for the upcoming year for Lymewood and Ryefield Manor, and HOPE tax abatement of 100%. Motion carried.
Use of Surplus:
Mrs. Stajduhar showed various scenarios using surplus to fund the larger projects in FY2019/20. If $200,000 were taken from surplus, the mill rate would be 22.80, a 4.10% increase and if $500,000 were used from surplus, the mill rate would increase by 3.21%. The board discussed using more out of surplus to offset such a high mill rate increase. Mrs. Stajduhar stated that using $800,000 out of surplus to offset next year’s budget, the mill rate would increase by 0.50 or a 2.28% change in mill rate. There was a discussion and review of the various large projects that need to be addressed, as well as the Regional School District’s increase.
A motion was made by Mrs. Sturges, seconded by Mr. Garvin, to take $800,000 out of surplus to decrease the mill rate for FY2019/20. Motion carried.
Additional Appropriations
Discussed above.
Approval of March 19, 2018 Minutes
The minutes of March 19th were reviewed. An addition was added on page 4, 5th paragraph, the 1st sentence should read, “Included with the Suspense Lift, there was a letter…”.
There were no corrections noted, a motion was made by Mrs. Reiter, seconded by Mrs. Sturges, to approve the minutes, as modified. Motion carried.
Other Business
Mrs. Stajduhar reported that the Town’s Auditor’s fee increased by $680, from $34,000 to $34,680.
Mrs. Reemsnyder stated that the new Resident State Trooper, Greg Hunter, started on Monday, March 25th. He is from Troop F in Westbrook and is looking forward to working as the town’s new Resident State Trooper.
Board of Finance Meeting March 26, 2019
Mr. Russell stated that the Board of Finance Budget Public Hearing is scheduled for Monday, April 15th at 7:30 p.m. in the Meeting Hall at the Memorial Town Hall. Mr. Russell will not be present but Mr. Kelsey will be presenting the budget at that meeting.
A motion was then made by Mrs. Sturges, seconded by Mrs. Reiter, to adjourn the meeting at 9:30 p.m. Motion carried.
Respectfully Submitted,
Michele E. Hayes
Secretary
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