741 Colonel Ledyard Highway

Ledyard, Connecticut 06339

TOWN OF LEDYARD

Finance Committee

Meeting Minutes

Chairman

Kevin J. Dombrowski

Regular Meeting - Hybrid Format

Wednesday, September 21, 2022

5:00 PM

Council Chambers - Town Hall Annex

Building

In -Person Council Chambers

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CALL TO ORDER

the Meeting was called to order by Councilor Saums at 5:06 p.m. at the Council Chambers Town

Hall Annex Building.

Councilor Saums welcomed all to the Hybrid Meeting. He stated for the Town Council Finance

Committee and members of the Public who were participating via video conference that remote

meeting information was available on the Agenda that was posted on the Town’s Website -

Granicus-Legistar Meeting Portal.

II.

ROLL CALL

Councilor Bill Saums

Councilor Andra Ingalls

Councilor Tim Ryan

Present:

In addition, the following were in attendance:

Mary McGrattanTown Councilor

S. Naomi RodriguezTown Councilor

Fred Allyn, III Mayor

Matthew Bonin Finance Director

Steve Masalin Director of Public Works/Town Engineer

Jason Hartling Superintendent of Schools

Roxanne MaherAdministrative Assistant

III.

CITIZENS COMMENTS

None.

IV.

VI.

PRESENTATIONS / INFORMATIONAL ITEMS

None.

FINANCIAL REPORTS

Finance Director Matthew Bonin reviewed the following Reports:

v Revenue Report Fiscal Year Ending June 30, 2022

Mr. Bonin noted the Revenue Report dated June 30, 2022 reflected all the revenues

received for the Fiscal Year 2021/2022.

o Original Revenue Budget:

o Actual Revenue Received:

$60, 295,917

$61,112,615

TOTAL:

+$ 816,798

Mr. Bonin noted Revenues received were $816,798 more than the amount that was

budgeted.

v Expenditure Report Fiscal Year Ending June 30, 2022

Mr. Bonin stated the Expenditure Report has accounted for all Fiscal Year Purchase

Orders.

General Government

o Original Expenditure Budget:

o Actual General Government Expenditures: $28,047,955

TOTAL: ($ 516,886)

$26,623,848

BOE Healthcare Over Budget

($ 861,753)

TOTAL: ($ 311,663)

Mr. Bonin stated the Board of Education Healthcare Account was over budget as

follows:

ü Retirees were over budgeted amount by: $512,000

ü Active Employees were over budget by: $350,000

BOE Healthcare Over Budget

($861,753)

Board of Education Expenditure Budget:

o Original Expenditure Budget:

o Actual Expenditures:

$33,671,969

$33,466,745

TOTAL:

+$ 205,224

v Other Finance Sources & Uses

ü BOE Surplus from Fiscal Year 2022/2021

$907,220

$565,965

ü ASTE Vo-Ag Science Capital

ü Miscellaneous (ClearGov; Owl-HQ)

ü Public Works Tree Removal

$301,692

$ 10,408

$ 25,000

4,155

ü Parks & Rec. (Food Pantry Electric)

TOTAL:

$ 907,220

v Fund Balance for Fiscal Year Ending June 30, 2022 (Unaudited) $4,612.497

Mr. Bonin provided an overview of the Unaudited Fund Balance stating there was a

$402,582 decrease in the Fund Balance from the previous year (FYE 6/30/2021);

providing an Undesignated Fund Balance of 7.5% of the Expenditure Budget:

o Audited Fund Balance 6/30/2021:

o Projected Fund Balance 6/30/2022:

$5,014,582

$4,612,497

o Excess Revenues/ Over Expenditures ($402,582)

Finance Director Matthew Bonin explained that the projected Fund Balance would be

adjusted to account for the property taxes that were collected during the months of July

and August (60 days after year-end), noting that they were waiting for those numbers to

come in. He stated on average the swing would be between $40,000 - $50,000.

Mr. Bonin continued by suggesting the Finance Committee consider not moving the

Board of Education’s Fiscal Year 2021/2022 Operating Budget Surplus in the amount

$205,224 to the BOE Capital Account because the Board of Education’s Healthcare

Costs exceeded the budgeted amount by $861,753.

Councilor Saums stated although he agreed that they should look at the net of the Board

of Education’s $206,223 Operating Budget Surplus and their $861,753 shortfall in the

BOE Healthcare expenditures, that changes may need to be made to the following two

Resolutions, that would state the transfer of the funds would be based on the Board of

Education’s Net Budget:

“Resolution Creating a Funding Mechanism for Making Annual Appropriations to a

Capital Reserve Fund for the Board of Education” adopted on September 28, 1988 -

required the transfer of the Board of Education’s Surplus Funds at the end of each

year.

“Resolution Regarding The Establishment of An Account for the Revenues Received

From Leasing the Ledyard High School Multi-Use Facility” adopted on April 22,

2022 - Required 15% of the Board of Education’s Surplus to be transferred to the

account established for the replacement of the artificial turf field, when the surplus

exceeded $250,000.

The Finance Committee commented on the $4,612,497 Projected Fund Balance for the

Fiscal Year Ending June 30, 2022; which was 7.5% of the expenditure budget; and they

noted the Bond Rating Agency (Standard & Poors) has suggested Municipalities

maintain an Undesignated Fund Balance that was 10% - 12% of their Annual

Expenditure Budget.

6/30/2022 - Revenue Summary Report

6/30/2022 - Expenditure Summary Report

Unaudited Fund Balance Projection - 9/21/2022

VII. APPROVAL OF MINUTES

MOTION to approve the Finance Committee Regular Meeting Minutes of September 7,

2022

APPROVED AND SO DECLARED

Andra Ingalls

RESULT:

MOVER:

Tim Ryan

SECONDER:

IX.

OLD BUSINESS

MOTION to authorize the Permanent Municipal Building Committee (PMBC) to set the bid

rate for the Gales Ferry School and Juliet W. Long School roofing projects at $50.00 per

square foot to account for inflation.

In addition, the Permanent Municipal Building Committee may, with Town Council

approval, modify the scope of the “Various School Improvement Projects” to include the

replacement of the roofs at the Central Office, Gales Ferry School, and Juliet W. Long

School; installation of solar equipment at Gales Ferry School and Juliet W. Long School;

upgrades to the building management systems at Gales Ferry School; and electrical and

HVAC upgrades at Juliet W. Long School) to stay within the authorized amount

$6,725,000, as approved by the townspeople at the February 22, 2022 town-wide

referendum.

Also, the Town Council acknowledges that the Town of Ledyard is aware that the State of

Connecticut notified the Board of Education that the State would only provide a

reimbursement rate of 75% for the cost of the Gales Ferry School roof. This reduction in

State grant reimbursement was based the State’s record that the Board of Education accepted

the school in 2006, although the Gales Ferry School project was completed in 2001;

therefore, the State believed that school did not meet the State’s the 20-year criteria for full

reimbursement.

Moved by Councilor Ryan, seconded by Councilor Ingalls

Discussion: Councilor Saums provided some background noting that based on the Board

of Education’s letter dated September 2, 2022 the Finance Committee discussed a

request for the Town Council take the following actions:

· Authorize the Project Funding be increased from $35.000 per square foot to

$50.000 per square foot for the reroofing of the Gales Ferry School and Juliet W.

Long School; and

· Acknowledge that the town is aware that the State will only provide a Grant

reimbursement rate of 75% of the cost of the Gales Ferry School Roof Project.

Councilor Saums stated because more information was needed the Finance Committee

did not act on the Board of Education’s request at their September 7, 2022 meeting. He

stated during the past week that both he and Finance Director Matthew Bonin have

reached out to Mr. Robert Ficeto at the State Board of Education to obtain the State’s

documentation that was mandating the Town Council take a formal action to increase

the bid amount for the roof projects from $38.00 to $50.000 per square foot; and that

they acknowledge the State was now only going to provide grant funding for the Gales

Ferry School roof in the amount of 75% of the cost, explaining that according to the

State’s records, the Gales Ferry School Project was not accepted by the Board of

Education until 2006; although the School was completed and opened to students in

1999. Therefore, he stated the grant funding would be reduced because the State’s

records indicated that the roof did not meet the 20-year replacement lifecycle

requirement for the normal grant reimbursement (65% of 100% of the project cost).

Councilor Saums went on to state at the February 22, 2022 Town-wide Referendum the

townspeople approved to Bond $6,725,000 for various school improvement projects,

which included the school(s) roof projects. Therefore, he stated the town believed that

they would have enough money for the roof projects even with inflation.

Councilor Saums stated although a number of e-mails have been exchanged that little

information by way of documentation from the State has been received. He went on to

state in an e-mail received today (9/21/2022) Mr. Ficeto’s noted the Town Council’s

action needed to include the following three things:

(1) The name of school where the project was taking place;

(2) The type of work (i.e.: oil tank replacement, roof replacement, asbestos

abatement);

(3) The dollar amount.

Councilor Saums stated he continued to have concerns about the need to take these

actions because the town has not seen any documentation from the State in which they

have mandated the Town Council take additional actions. He suggested the Finance

Committee forward this action to the Town Council pending confirmation from the State

that they have requested the Legislative Body take additional actions. He stated if

Ledyard has not received confirmation from the State before the Town Council’s

September 28, 2022 meeting, then the Town Council would not act on the Motion.

Superintendent of Schools Jason Hartling stated Board of Education Director of

Facilities and Grounds Wayne Donaldson was on vacation this week. He provided an

overview of the preparation process to submit a proposed project to the State, noting that

they meet with State Officials to discuss nuances and guidelines. He stated during a

Pre-Submittal Conference Mr. Donaldson had with State Officials that the State shared

the State’s Mandates. Therefore, he stated it was a verbal request, and therefore, they did

not have the State’s required Mandates in writing. He stated that he fully supported

trying to get something in writing from the State; and that he appreciated Mr. Bonin and

Councilor Saums hard work to try to get documentation from the State.

Councilor Ryan requested clarification on the grant reimbursement for the school(s) roof

projects.

Superintendent Hartling explained Ledyard’s State Grant Reimbursement Rate for the

School Roof Projects was 65% of the total project cost, which was based on the State’s

Needs Profile for Ledyard. However, he explained, what the State was now saying, was

because the records show that the Ledyard Board of Education did not accept the Gales

Ferry School Project until 2006; even though it was completed and opened to students in

1999; that Gales Ferry School roof did not meet the 20-year replacement lifecycle

requirement for the normal 65% grant reimbursement of the full 100% project cost.

Therefore, the grant reimbursement rate for the Gale Ferry School roof was now going to

be 65% on 75% of the total project cost. He stated all the other roof projects would

receive a grant reimbursement rate of 65% of the total 100% cost of the project.

Councilor Ryan expressed concern that the Ledyard Board of Education did not accept

the Gales Ferry School Project until 2006 when it was completed in 1999. Mr. Hartling

noted that he was not with Ledyard 20-years ago; therefore, he could not speak to what

occurred. However, he stated the only rationale he could apply to the delay in the Board

of Education formally accepting the completion of the Gales Ferry School project was

that in 2006 Ledyard must have gone back to the State for another Grant Program and

the State told them that they could not apply for another grant until they closed out the

open project that was still on the State’s Books.

Councilor Ryan questioned the reason the State would require the Town to take a formal

action stating that they would increase the bid amount from $34.00 to $50.00 per squire

foot for the roof replacement projects. Mr. Hartling explained that the State does not

want the School District to present a project, only to come back and say that they needed

more money for the project. He noted the State was looking to make sure the project cost

was a realistic, accurate placeholder number. He stated before the Board of Education

could solicit bids for the School Roof Projects that they had to have the State’s approval.

Councilor Saums stated because the Gales Ferry School actually met the 20-year

lifecycle replacement, noting that the roof has been leaking for some time and it needed

to be replaced, that the thought was that they would move forward with the project and

continue to work with our State Legislators to obtain the 65% grant reimbursement on

the full 100% cost of the roof replacement project.

Councilor Ingalls addressed closing out the Gales Ferry School Project when it was

completed in 1999 and she questioned whether the Board of Education needed to

received something from the State before the Board of Education could vote to close the

project. Mr. Hartling explained there were multiple stages in closing out a school

construction project. He stated the marker the State used was for Boards of Education to

vote to accept and close out the project. He noted as an example of the process that the

Board of Education has voted to accept and close out the Middle School and Gallup Hill

School(s) Consolidation/ Improvement Projects. He stated once the Ledyard Board of

Education forwarded their action to the State, there were a number of steps the State

would take to close out the project for grant reimbursement, which included many years

of waiting for the State to conduct their Audit of the project.

Councilor Ingalls questioned how the town received the grant funding for the Gales

Ferry School Project if the project was not closed out at the time it was completed in

1999. Mr. Hartling provided an overview of how construction projects receive the State

Grant Funding. He explained that the State provides some grant funding as they worked

through the construction process. However, he stated the State holds back a certain

percentage of the grant funding until the State has completed their Audit of the project.

He noted as an example for the Middle School and Gallup Hill School(s)

Consolidation/Improvement Projects the State would be holding back 11% of the grant

funding, noting that this funding would not be released to the Town until the State has

completed their Project Audit. He concluded by stating that the date the State was using

for Gales Ferry School Project Completion was the date the Board of Education accepted

the project, which was in 2006.

The Finance Committee agreed to forward this action to the Town Council pending

confirmation from the State that they have requested the Legislative Body take these

actions.

RECOMMENDED FOR APPROVAL

Tim Ryan

RESULT:

MOVER:

Andra Ingalls

SECONDER:

Saums, Ingalls and Ryan

AYE:

Continued discussion regarding the status and possible changes to Capital Improvement Plan

(CIP) and Capital Non-Recurring (CNR) Fund based on the American Rescue Act Funding

(ARPA) and the process to approve ARPA Projects and expend ARPA Funding.

Councilor Saums suggested the Committee deferred discussion regarding the ARPA

Funded projects to their September 21, 2022 meeting, noting that he would like Mayor

Allyn, III to be present for their discussion.

NO ACTION

RESULT:

Any other Old Business proper to come before the Committee.

None.

NEW BUSINESS

MOTION to approve an additional appropriation of $4,477.79 to Account #10110311-56135

(Town Clerk - Recording/Licensing Supplies); upon receipt of the Secretary of the State

Grant Funding.

Moved by Councilor Ingalls, seconded by Councilor Ryan

Discussion: Councilor Saums stated because a high number of absentee ballots were

expected to be returned for the upcoming 2022 Mid-Term General Election, the

Secretary of State would be providing grant funding to help offset these costs, via

funding provided by the federal government. The amount of grant funding allocated

to the Town of Ledyard for this purpose was $4,477.79.

Finance Director Matthew Bonin stated the Town has already received the grant

funding from the State. He noted this motion would appropriate the funds to the

Town Clerk’s Budget.

VOTE: 3- 0 Approved and so declared

RECOMMENDED FOR APPROVAL

Andra Ingalls

RESULT:

MOVER:

Tim Ryan

SECONDER:

Saums, Ingalls and Ryan

AYE:

MOTION to appropriate $3,000 to Account 21040113-56315 (Transfer Station

Improvements) from Account 21090305-58915 (Undesignated) to fund the purchase of a

weather-tight container for oversized televisions and other electronics at the Transfer Station.

Moved by Councilor Ryan, seconded by Councilor Ingalls

Discussion: Public Works Director/Town Engineer Steve Masalin explained the

Department of Energy and Environmental Protection (DEEP) guidelines require

covering electronics staged for disposal at transfer stations. He provided some

background noting initially they used cardboard boxes for disposal of televisions and

other electronics at the Transfer Station; and that they were now using a large tent

style tarp to cover televisions and other electronics at the Transfer Station. He stated

although the tarp style tent worked better than the cardboard boxes the average

lifecycle of the tarp has been no more than two-years, noting that it gets blown apart,

etc. He stated rather than replace the electronic protection staging area with the same

type of material (tarp) that they would like to purchase a weather-tight export type of

container which would last much longer and would be a savings long-term because

they would not have to replace the tarp every two-years.

Mr. Masalin went on to explain that the Transfer Station and other recycling revenues

were appropriated to the Undesignated Fund. He stated over the last five years these

revenues have totaled about $75,000 per year. Therefore, he stated because the Public

Works Budget did not have adequate funding to purchase the weather-tight export

type container, he was requesting a transfer/appropriation from the Undesignated

Fund in the amount $3,000 to Account 21040113-56315 (Transfer Station

Improvements) from Account 21090305-58915 (Undesignated) to purchase the

weather-tight container for the oversized televisions and other electronics at the

Transfer Station.

Councilor Ingalls questioned the reason the State required electronics, that were

being discarded, to be stored in a weather tight container. Councilor Ryan stated he

would assume the Department of Energy and Environmental Protection (DEEP)

required storing the electronics in a weather tight container was because of corrosion

and potential seepage of chemicals and other toxic materials that were in the

electronics.

Councilor Saums questioned the Mayor’s comment on LF# 22-446 regarding possible

savings by purchasing a used export box for electronics from an on-line auction site such as

E-Bay. Mr. Masalin stated he and the Mayor discussed options to purchase the export box.

He stated Building & Grounds Forman Sean Ruszcyk investigated options to purchase a

used export box, including purchasing a used export box from the supplier they would like

to purchase the new export box from. He explained although the pricing was less expensive,

that the supplier did not have any used export boxes available. He stated they were keeping

purchasing a used export box from the Supplier as an option, should the Supplier have a

used export box come in before the town moved forward with the purchase of the export

box. He also addressed the weather tight warrantee on a used export box, noting the lifecycle

of a new export box would go beyond five-years before they would need to replace the box.

VOTE: 3 - 0 Approved and so declared

RECOMMENDED FOR APPROVAL

Tim Ryan

RESULT:

MOVER:

Andra Ingalls

SECONDER:

Saums, Ingalls and Ryan

AYE:

Discussion concerning appropriation of Transfer Station and other recycling revenues to a

reserve fund for Transfer Station capital needs.

Public Works Director/Town Engineer Steve Masalin thanked the Finance

Committee for the opportunity to discuss a proposal regarding the revenue generated

from the transfer station fees and recycling fees which were currently being

appropriated to the Undesignated Capital Fund. He explained once the revenues were

deposited to the Undesignated Fund the only way to access those funds was thru a

special request of the Town Council to approve an appropriation from Undesignated

Fund. He noted that the Public Works Department has stood in-line with other

Departments to request Town Council approval for the use of the Undesignated

Funds for various Public Works initiatives including road work, drainage work, and

transfer station work, etc.

Mr. Maslin went on to note as he mentioned in New Business Item #2 (above), that

he has been tracking the revenues generated from transfer station fees and recycling

fees and they have generated over $1.5 million over a 21-year period, averaging about

$75,000 per year during the last five years. He stated the reason for his request to

discuss these revenues this evening was to appeal to the Town Council to consider

drafting a mechanism similar to Ordinance #200-009 “An Ordinance Providing the

Transfer of Certain Revenues from the Real Estate Conveyance Tax to Specific Town

of Ledyard Funds” He explained per the Ordinance: “ A sum equal to forty percent

(40%) of the money thus received shall be deposited to Fund 8, the Parks and Recreation

Capital and Non-Recurring Expense Fund; an additional forty percent (40%) of said money

shall be deposited to Fund 6, Capital and Non-Recurring Funds, to be used only for

capital/infrastructure expenses; and the remaining twenty percent (20%) of said money shall

be deposited to Fund 6, Capital and Non-Recurring Funds, with an Acquisition of Open

Space Allocation”.

Mr. Masalin stated although he was not coming with a proposed measurement in terms of

specifics, if the Finance Committee was not interested in his concept to set aside a portion

of the transfer station and recycling revenues for Public Works initiatives. However, he

stated putting something aside would be of value noting it would eliminate him having to

come to the Town Council for appropriations from the Undesignated Fund things such as

Transfer Station Improvements for lifecycle and compliance improvements.

The Finance Committee and Mr. Masalin continued by discussed the following:

Single Stream Recycling has not worked as well as initially expected, because of glass

contamination. The glass containers were breaking and mixing in with paper.

Recycling revenues were declining because the town was being charged per ton for

things such as glass, that they were being asked to include in the Single Stream recycling

because it was cheaper to put the glass in the Stream Recycling than the cost of the

weight of the glass in the household trash that would go to the incinerator.

Looking at alternative ways to remove glass completely out of the waste stream.

Currently there was no market for the recycling of glass. Some markets were using

crushed glass as an aggregate, for asphalt and other products.

Cost to pick-up recyclables every week, alternating between paper one week and glass

the other week.

Pay as you Throw programs were not popular and did not produce a correlating decrease

in taxes for residents.

Mr. Masalin stated the was looking for a consensus from the Finance Committee as

to whether he should take the next step to prepare a proposal with numbers with

some specifics to allocate a fixed percentage of the Transfer Station and Recycling

Revenues to an Account to be used for period Public Works initiatives. He stated to

spend the funds from this Account that he could prepare a Plan, as he currently does

for the Building Improvement Needs, to be presented during the annual budget

approval process. He also noted that in addition to the funding in this account that

there would most likely need to

Councilor Ingalls questioned whether there were any Departments that currently

request appropriations from the Capital Undesignated Fund that do not generate any

revenues and would be impacted because a portion of the current revenue stream that

has been deposited into the Capital Undesignated Fund would now be redirected to

another account that they would not have access to. Mr. Masalin stated there were

Departments that do not generate revenue and do request funding from the Capital

Undesignated Fund. He stated some research would be required to determine the

portion of the Transfer Station and Recycling Revenues that the Public Works

Department has used in past years to help determine the correct fixed percentage that

would be allocated to the new Account for the Public Works Department; explaining

that the Capital Undesignated Fund grows independent of any budgeting for it.

The Finance Committee agreed by consensus for Mr. Masalin to prepare a proposal

to allocate a fixed percentage of the Transfer Station and Recycling Revenues to a

new Account to be used for periodic Public Works initiatives for discussion. Mr.

Masalin stated he would talk with the Mayor and work with Finance Director

Matthew Bonin and others to draft a proposal.

CONTINUE

RESULT:

Any other New Business proper to come before the Committee.

None.

XI.

ADJOURNMENT

Councilor Ryan moved the meeting be adjourned, seconded by Councilor Ingalls.

VOTE: 3 - 0 Approved and so declared, the meeting was adjourned at 6:13 p.m.