To the Editor:
Christina and I attended the April 30 town meeting at which the Resolution “authorizing the issuance of bonds and notes to finance an existing appropriation* for the planning, design, and construction of an expanded joint Old Lyme/Lyme Senior Center was discussed by First Selectwoman Martha Shoemaker and the Board of Finance (BOF) Chair, Bennett J. Bernblum.
I am writing to clarify a few points of confusion that were raised that night; which could be useful for those “non-attendees” as you prepare to vote on Tuesday, May 7.
The May 7 referendum in Old Lyme is not for resident approval of funding for the renovation and expansion of the Lymes’ Senior Center. Old Lyme’s portion of those required funds was approved on June 20, 2023 and April 15, 2024. (i.e., the “existing appropriation*” in the above.)
Rather, the First Selectwoman and the Old Lyme Board of Finance (BOF) seek resident approval and authorization to formally explore and potentially commit to bonding for all or part of its Senior Center funding obligation. Note that “exploring.” the issuance of bonds does not obligate the Town—it just provides some important information that the BOF will use to prudently determine which funding alternative to take. Note that these funds are currently available at favorable rates and Old Lyme enjoys a high rating as a municipality seeking funds.
Per [BOF Chairman] Mr. Bernblum in his 04/27/2024 LTE [published on LymeLine.com]; “if it is defeated, then Old Lyme will not have the option to issue bonds for all or part of its $4,107,656 obligation.
Instead, it will have to draw funds from its undesignated surplus, thereby substantially reducing the sums that would be available to mitigate the tax impact from the Region 18 renovations coming down the pike in a year or two. This would be a serious mistake.”
Note that the current undesignated surplus is estimated at $13 million. At the meeting, Mr. Bernblum also discussed a few fiscal “rules of thumb” regarding the amount that should be maintained in Old Lyme’s “rainy day fund.”
A referendum on the Region18 Board of Education 2024-25 budget of $36,920,881 that was approved in February will also be held on May 7.
Sincerely,
Christina J and Thomas D. Gotowka,
Old Lyme.
Helpful explanation— thanks!
Thank you for the clarification.