Category Archives: Town Hall

Referendum on Lyme-Old Lyme Schools’ Budget to be Held Tuesday, Budget Meeting Monday

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‘Rainy Day Fund’ Will Not be Used to Offset 7.4% Budget Increase

LYME/OLD LYME–Registered voters and qualified taxpayers on Tuesday will be asked to weigh in on the proposed $39.7 million budget for the regional school district serving Lyme and Old Lyme. 

The District 18 Board of Education earlier this month voted unanimously to hold a District Budget Meeting this evening, Monday, May 5, at 6:30 p.m. in the Board of Education Conference Room at Center School. Members of the school board will adjourn to a referendum vote the next day.

A livestream of Monday evening”s meeting can be viewed at this link: https://www.youtube.com/channel/UCF2_W7yYtFwx067Ici9776Q/live

The agenda for the meeting is at this link: https://docs.google.com/document/d/1WB8EzTFs_0MSwy-MnBEaU67YXJNbRkvJ0Vwdw3qYFrk/edit?tab=t.0

The proposed budget represents an increase of $2.7 million, or 7.39%, over the current spending plan. Superintendent of Schools Ian Neviaser has said the bulk of the proposed budget increase is related to debt coming due on the extensive renovation project in four of the district’s five buildings. 

Of the proposed budget’s $2.7 million increase, $1.8 million is attributable to debt payments on the renovation project. 

Voters in late 2022 authorized spending up to $57.5 million on the project. During this budget season, Neviaser has emphasized the district will be spending about $17 million less than that due to grant funding and good interest rates.

The proposed budget includes an increase in special education spending of $726,721 over the current year.

Neviaser said the increase in special education costs is driven by more students, who need to be placed in programs outside the district to meet their needs. There are four students requiring outplacements in the coming year compared to one student when the current budget was approved. 

There are currently 180 kindergarten through grade 12 students with disabilities in the district compared to 162 in 2020-21, according to budget documents. 

Employee benefits are up $448,485, salaries for certified staff members are up $278,654 and transportation costs are up $164,234.

The proposed budget includes maintenance and improvements to district facilities totaling $359,200 for a sound system in the high school auditorium, lighting in the middle school auditorium, replacement of the preschool playground and paving of the sidewalk in front of the middle school. 

Reductions were achieved by turning the high school assistant principal position into a ten-month position rather than a full-year position and reducing middle school education staffing by one position. 

A music teacher cut in Neviaser’s initial recommendation is back in the proposed budget after the school board agreed the reduction would be detrimental to the music program. The district will find savings elsewhere in the proposed budget to cover the cost, Neviaser said. 

District budget documents show that Old Lyme would be responsible for $31.51 million of the budget, while Lyme would pay $6.96 million. Both towns are billed by the regional school district based on enrollment.

That’s a proposed increase in Old Lyme of $1.99 million, or 6.7%, and in Lyme of $299,504, or 4.5%.

Neviaser in a Tuesday email said the regional school board won’t use any of its $3.1 million undesignated fund balance – or Rainy Day Fund – to offset the spending increase despite calls to explore the option.

“The board has not chosen to make any changes to the current proposed budget and plans to go to referendum with what we believe is a fiscally responsible and reasonable request of a 2.69% increase in the operating budget coupled with a 4.7% increase in debt service, which is the main driver for the overall 7.39% increase,” he said. 

School board Chairman Jason Kemp, who said he was speaking for himself rather than the full board, wrote in an email Tuesday that the undesignated fund is generally used for projects that might be too large for an annual budget, but too small to go to referendum and bonding. 

“While nothing is planned at the moment, an example of such a project would be to replace the track which we are told can’t really be resurfaced again. It would be fiscally irresponsible to spend that down significantly to cover a year of debt service on the PK-8 school project,” he said. 

Residents voting through an absentee ballot must submit the 2025 application, which are available on the town’s websites and the Secretary of the State website. Only absentee ballot applications with the current year printed on them will be accepted. 

Absentee ballots must be received by the town clerk before the close of polls on the day of the referendum. 

The referendum is open to registered voters and non-resident property owners in each town.

The referendum will be held May 6 from noon to 8 p.m. The vote will take place in Old Lyme at the Lyme-Old Lyme Middle School Gym, 53 Lyme Street. Lyme residents will vote at the Lyme Town Hall, 480 Hamburg Road.

Editor’s Note: This article has been updated with details of the time and location of the Budget Meeting, and links to both the meeting agenda and the livestream of the meeting.

Old Lyme Town Budget Hearing Uncontentious Despite Proposed 7.8% Increase Over Current Spending

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OLD LYME – Board of Finance Chairman Bennett J. Bernblum on Monday presented the proposed $45.39 million budget along with its potential implications on taxes in this and coming years. 

The proposed $45.39 million 2025-26 budget – which includes town operations and capital expenses as well as the town’s share of the regional Lyme-Old Lyme school district – represents an increase of $3.28 million, or 7.8%, over current spending. It is heavily influenced by large-scale renovation projects affecting the schools and the Lymes’ Senior Center. 

The public hearing on the budget lasted just over a half hour in front of roughly two dozen people in the Town Hall meeting room. Bernblum opened with the acknowledgement that it was not the kind of “sell out crowd” that drew more than 550 people to the Lyme-Old Lyme High School earlier this month to discuss for more than three hours a controversial proposal to allow apartments on the commercial strip of Halls Road. 

Amid the apparent lack of controversy Monday night, Bernblum laid out the budget proposal he said would likely raise tax bills for the average property owner by around 4.7% based on the recent townwide property revaluation. But residents whose home values increased more than the average will see a heftier hike in their tax bills. 

He said the projected tax rate, which won’t be set until immediately after the proposed budget is approved by voters, will be 16.2 mills.

A mill represents $1 in tax per $1,000 of assessed property value.  

Bernblum has said the tax rate would be going up 6.8% if the finance board didn’t offset the increase by taking $800,000 out of the undesignated fund balance, or Rainy Day Fund.

The current tax rate is 24.4 mills. After taking the revaluation into account – and if spending did not change at all in the coming year – the tax rate would be 15.5 mills. 

The town’s grand list of taxable property grew by 57.4% as a result of the revaluation, according to final assessor’s data that takes into account adjustments by the Board of Assessment Appeals. The board finished its final hearings earlier this month. 

That means a house appraised at $400,000 with a valuation mirroring the average 57.4% increase to the grand list is now worth $629,600, according to Bernblum’s presentation. The tax bill for that homeowner based on the proposed budget would be $7,153 – an increase of $321, or 4.7%, over the current tax bill. 

Illustrating the complexity of a revaluation year, Bernblum said a house valued at $600,000 that went up 65% in value due to the revaluation is now worth $990,000. The owner of such a home can expect a $11,247 tax bill if the proposed budget goes through. That’s an increase of $999, or 9.8%, over the current tax bill. 

Old Lyme’s government operations expenses come in at $11.39 million, an increase of $835,260 million, or 7.9%, over the current budget. That includes debt service amounting to $702,350, which is up $271,168, or 62.9%, over current payments. The increase is driven largely by debt payments on the Lymes’ Senior Center renovation project.

The proposal includes an additional $107,000 increase in health insurance expenses over the current year.

The budget proposal, along with new language related to several town ordinances, will go to voters at a town meeting on May 19. 

The Impact of Education

The proposed budget in Old Lyme includes education costs of $31.52 million, which is up $1.99 million, or 6.72%, from the town’s current share of the regional school district budget. The increase is driven by debt payments on a multi-building renovation project approved by voters at a cost of $57.5 million. 

A referendum on the $39.7 million Region 18 budget proposal – which represents an increase of $2.7 million, or 7.39%, over the current spending plan for the district – is scheduled for May 6 in Lyme and Old Lyme.

The Region 18 Board of Education earlier this month voted unanimously to send the budget proposal to referendum.

Earlier objections to a decision to cut an elementary music teacher from the proposed budget were muted after the school board agreed to put the position back into the spending plan. The district will find savings elsewhere in the proposed budget to cover the cost, according to Superintendent of Schools Ian Neviaser. 

Neviaser in a Tuesday email said the regional school board has opted not to use any of its $3.1 million undesignated fund balance to offset the spending increase despite calls to explore the option.

“The board has not chosen to make any changes to the current proposed budget and plans to go to referendum with what we believe is a fiscally responsible and reasonable request of a 2.69% increase in the operating budget coupled with a 4.7% increase in debt service, which is the main driver for the overall 7.39% increase,” he said. 

School board Chairman Jason Kemp, who said he was speaking for himself rather than the full board, wrote in an email Tuesday that the undesignated fund is generally used for projects that might be too large for an annual budget, but too small to go to referendum and bonding. 

“While nothing is planned at the moment, an example of such a project would be to replace the track which we are told can’t really be resurfaced again. It would be fiscally irresponsible to spend that down significantly to cover a year of debt service on the PK-8 school project,” he said. 

He noted the proposed budget is less than the projected 10% increase for the coming year that had been presented to the towns prior to the referendum vote on that project. He cited lower than expected interest rates and grant funding that helped defray costs.

Rainy Days in Old Lyme 

On the town side, the finance board on April 15 voted to use $800,000 from its own undesignated fund balance to soften the impact of the proposed budget increase on taxpayers. 

Budget figures from Finance Director Anita Mancini show the allocation will bring the predicted $14.2 million Rainy Day Fund from 35.15% of the total operating budget at the end of this budget year to an estimated 29.6% in the coming budget year.

Bernblum said maintaining a healthy undesignated fund balance will help the town mitigate the effect of increasing budgets on taxpayers going forward. 

“And that will still leave (a) surplus of a significant amount to hedge against future needs,” he said. 

He emphasized that debt payments from the schools’ renovation project will continue to increase through the 2028-29 budget year. 

“So debt service for Region 18 is going to continue to go up significantly, but not astronomically, over the next several years, and then finally it will begin to come down,” he said. 

A philosophical schism between the two major parties on the finance board has pitted Democrats against Republicans. The decision to dip into the Rainy Day Fund for $800,000 represented a compromise among the three Democrats, who wanted to use more of the surplus to mitigate tax increases, and the three Republicans, who would have preferred to use less in order to save for the future. 

Some finance board members at the time said the town could be facing costs in coming years related to a years-long effort to bring sewers to several beach communities under pressure from the state Department of Energy and Environmental Protection. 

While town officials have long said the expense would be covered by property owners in the affected beach areas, Bernblum on Monday acknowledged there could be costs to residents at large. 

State law specifies towns cannot assess property owners for any amount higher than the percent increase in the property value attributed to the sewers.

“It is possible that something could go wrong in the formula and that…the (Old Lyme Water Pollution Control Authority) won’t be able to bill the homeowners all of the costs necessary to recover 100%, in which case then the town could have some liability,” he said. 

Shoemaker said costs related to connecting town-owned properties to the sewer system, including the Old Lyme Police Department on Shore Road and a planned bathroom facility at Sound View Beach, would also be covered by the town. 

She said the town’s proposed capital plan includes $20,000 for initial engineering designs related to the Sound View bathrooms and contemplates spending an additional $20,000 on designs the following year. 

Uncertain Expenses

Proposed capital costs come in at $2.49 million in the proposed budget. That’s up $456,792, or 22.5%, from the current budget.

The capital spending plan includes $443,500 to save for the purchase of three fire department apparatuses over the next several years. Also included in the budget is an additional $200,000 for road-paving projects, bringing the total line item to $1 million.

The plan earmarks $70,200 toward architectural designs sought by the Halls Road Improvements Committee (HRIC) for a plan to add a pedestrian bridge, sidewalks and other amenities, according to Bernblum. 

But the Board of Selectmen last week agreed to put the work of the HRIC on hold in the wake of a groundswell of opposition to a separate proposal to amend the town’s zoning regulations and the subsequent resignation of HRIC Chairwoman Edie Twining. 

“What is going to happen with Halls Road is in the hands of the Board of Selectmen primarily at this point,” Bernblum said. “So what they decide to do, or we decide to do, with respect to Halls Road at the moment has not been decided.” 

Proposed capital expenses also include $80,000 to supplement $95,000 approved last year at a town meeting for the design and construction of a replacement gazebo at White Sands Beach. 

First Selectwoman Martha Shoemaker said the town engineer’s original estimates were upended when it was discovered the town would have to follow state and federal flood zone requirements in updating the structure. 

Subsequent estimates came in at $173,000 for the project, according to Feb. 24 Board of Selectmen meeting minutes. 

Shoemaker attributed the steep increase to more stringent guidelines for installing the footings and holding the gazebo in place. 

Shoemaker said the plan is to complete the engineering designs using last year’s allocation so the project can go out to bid. 

Bernblum put it this way: “We’ll go out to bid when the designs are completed and cross our fingers that there’s enough money. And if not, we’re going to have to come back to you guys and beg for more.” 

Bernblum said the finance board remains open to public feedback on the proposed budget through the May 19 town meeting. 

“Historically, we haven’t gotten negative feedback in regards to it, but we certainly invite that,” he said.

Editor’s Notes: i) Bennett Bernblum is a financial supporter of LymeLine.com, but has no input to the editorial process, which remains completely independent.
ii) A reminder of Our Policy on Comments.

Lyme Board of Finance Proposes $11.37 Million Budget With No Tax Increase

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Despite Increase in D18 Spending, Budget Down Over $1M Primarily due to Reduction in Capital Costs

LYME – The Board of Finance is predicting a flat tax rate after they unanimously approved a proposed $11.37 million 2025-26 spending plan that will go to a public hearing next month. 

The budget proposal is down $1.02 million, or 8.2%, from the current budget. 

The Board of Finance on Tuesday voted to send the proposed budget to a public hearing on May 8. The finance board will then take a vote on sending the spending plan to a Town Meeting preliminarily set for May 22.

If the proposed budget is approved by voters, the finance board said it will set the tax rate at the current 14.5 mills immediately following the town meeting. 

The budget proposal includes town operating and capital expenses, as well as Lyme’s share of the Region 18 education budget. 

Education costs in Lyme’s proposed budget come out to $6.96 million for the town’s estimated 231 students. That’s up $299,504, or 4.5%, from the town’s current share. The increase is driven by debt payments on a multi-building renovation project approved by voters at a cost of $57.5 million. 

The Region 18 budget, which totals $39.7 million for the district covering Lyme and Old Lyme, is set to go to a referendum vote in both towns on May 6.

Lyme’s $10.84 million town operations budget proposal is up $513,372, or 5.0%, over the current budget. Proposed capital spending comes in at $530,400, a decrease of $1.53 million, or 74.3%, from the current budget. 

First Selectman David Lahm in a Tuesday interview at the Town Hall attributed the decrease in capital spending to the completion of bridge projects on Birch Mill Road and Macintosh Road that had driven up the budget in previous years. 

He said the town is looking at a flat tax rate because officials are not extravagant in their budget planning. 

“We take care of what needs to be taken care of, but we understand the difference between ‘I want’ and ‘I need,’” he said. 

Planning for Tomorrow’s Needs Today

The town’s projected general fund balance – referred to informally as a Rainy Day Fund – amounts to $4.14 million in the proposed budget. The figure represents about 33% of total anticipated revenues, which is one of the figures credit agencies look at to gauge a town’s financial health. 

Finance board Chairman Alan Sheiness at this week’s meeting said the bond agent for the school district told him S&P Global Ratings likes to see reserves in the area of at least 19% to secure a AA or AAA credit rating. 

Finance board policy dictates that the town maintain a “target” fund balance equivalent to two months of operating expenses, but Sheiness in a Friday phone interview said two months’ savings is more of a minimum than a target. 

Nearby towns like Old Lyme have debated how much money to keep in the Rainy Day Fund in order to save for emergencies while not overtaxing residents. 

In a phone interview Friday, Sheiness acknowledged the fund balance in Lyme has historically exceeded the two months’ target. But he said the number fluctuates based on big-ticket capital expenses that may be needed in any given year. 

Sheiness said the finance board looks several years ahead when determining how much money should remain in the town’s reserves. 

“I do understand the number is high today for today’s needs, but it’s not too high today for the next few years’ needs,” he said.

Lyme First Selectman David Lahm Will Not Seek Reelection; No Candidates Announced Yet

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LYME – Newly unaffiliated First Selectman David Lahm will not be seeking reelection in November. 

“I’ll be 66 years old when I leave office,” he said from the Town Hall Tuesday night. “I’ve been a volunteer in one way or another in this town, and in the service of our country in the military, since 1975. It’s time for my wife and I to build some time for us.”

Lahm was a Republican selectman when he was appointed to the top seat in 2022 after the mid-term retirement of Democrat Steve Mattson. 

He said he informed the leadership of both major political parties back in January of his intention not to run for another term. No candidates for the first selectman’s seat have been announced. 

“All things considered, I would have liked to have spent another term, but I look at some people I know who are no longer with us, and I don’t want to be one of these guys who works and then, six months after he retires, dies,” Lahm said. 

Lahm acknowledged that he switched his political affiliation from Republican to unaffiliated a few weeks ago. He said he based the decision on “national politics” under President Donald Trump. 

“I can’t be affiliated with that administration,” he said. 

But his discontent with the situation nationally did not drive his local reelection decision, according to the first selectman. He said officials in Lyme “have a long tradition of working across the aisle.”

Lahm recalled starting out his voting life as a Democrat. He became a registered Republican in 1992. 

“I changed then because I felt the Democratic Party had left me, and I now feel the Republican Party has left me,” he said. 

Lahm began volunteering in Lyme at age 16 as part of the Lyme Fire Company. He went on to join the U.S. Army, earn his law degree, and serve in the Connecticut National Guard until his retirement as a full colonel in 2012. His service includes tours in Afghanistan and Iraq.

Lahm was elected to the Board of Selectmen in 2021. Democrat Kristina White was appointed to take his place when he took over for Mattson as first selectman.

The board under Lahm’s leadership changed its name to the Board of Selectpeople in 2023, though he said at the time they would retain the gendered forms of their titles individually.

Republican Town Committee Chairwoman Mary Powell-St. Louis in a Wednesday phone call said the committee is finalizing its slate of candidates for all board and commission seats up for election in November. She expects to announce the full slate by the end of June.

Powell-St. Louis said she’s been the local Republican chairwoman since March of last year. She replaced Lahm, who resigned from the committee the previous December.

She said she wishes him well on “the next chapter of his journey.”

“I think he’s been a solid force for the town and I think his leadership was well received by the entire community – the Republican, Democratic and unaffiliated sides,” she said. 

She described Lahm’s decision to change his political affiliation as a personal one. 

She said the Republican Town Committee is more concerned with local issues than what happens on the national stage. 

“Speaking for myself, I think that the national politics don’t belong in the small town of Lyme,” she said. “We’re focused on the local issues and local representation.” 

John Kiker, a selectman and the chairman of the Democratic Town Committee, said Lahm’s inclusive leadership style will be missed. 

Kiker and Democrat Kristina White serve with Lahm on the three-member board. 

“He definitely sought our input on all matters,” he said. 

Kiker also emphasized Lahm’s thoughtful way of addressing problems. 

“He has a very calm way of dealing with people, taking things in and making a decision,” he said. 

White in a Wednesday phone interview said Lahm’s commitment to Lyme, a town that has always relied on volunteers, is evident. 

“I think he just exemplifies how we run the town, and exemplifies the character of the town that has always been for people to step up and volunteer,” she said. “And he did that, both as a selectman and stepping in after Steve Mattson resigned.”

Both Kiker and White said they will be running for reelection as selectmen. 

Kiker said local Democratic leadership has identified a possible candidate for first selectman. He declined to announce the name pending a vote by the full Democratic Town Committee in May.

Old Lyme Selectmen Place Halls Road Improvements Committee on Hold

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OLD LYME – The Old Lyme Board of Selectmen on Monday pressed pause on the Halls Road Improvements Committee (HRIC).

Selectmen at their regular meeting agreed to the move in the wake of months of controversy involving the future of a short span of road lined with outdated strip malls set between two highway interchanges. At the center of the dispute was a proposal from the Halls Road committee calling for the creation of an overlay district in the commercial zone that would allow apartments and condominiums to be built above, or behind, ground-floor businesses set close to the street. 

Months of vocal opposition to the group’s work culminated on April 14 when the committee’s vision for Halls Road was rejected in a 4-1 vote by the Zoning Commission. HRIC chairwoman Edie Twining resigned a few days later after six years at the helm. 

Many residents – more than 1,200 in an online petition and more than 500 packed into an April public hearing – did not see eye to eye with the committee.

First Selectwoman Martha Shoemaker in a phone interview Tuesday said the town’s three selectmen agreed to put the Halls Road committee on a “hiatus.”

There are currently four vacancies on the nine-member committee, according to the town website. 

“All three of us so much appreciate all the work the Halls Road Improvements Committee has done over the years, and we just want to plan for the best way forward,” she said. 

Shoemaker and HRIC member Paul Gianquinto will meet with the state Department of Energy and Environmental Protection (DEEP) on May 5 to discuss unfinished business involving a plan for physical improvements to Halls Road. Representatives of the DEEP have been in talks with town officials about the possibility of transferring ownership of the state’s property on the east bank of the Lieutenant River to Old Lyme, as long as the town agrees to build a fishing pier and parking spaces there. 

Shoemaker said she will bring the topic back to the Board of Selectmen for discussion after she and Gianquinto meet with the state. 

As part of the HRIC plan to make the road safer and more passable for walkers and bikers, selectmen in 2023 hired AI Engineers of Middletown to come up with plans for a pedestrian bridge over the Lieutenant River and a trail system between Lyme Street and Halls Road. The designs were funded with $135,000 in federal American Rescue Plan money and a $28,500 grant through the Connecticut Recreational Trails program.

Shoemaker said selectmen on Monday concurred with a longstanding call among residents to put sidewalks on the road. 

She said she’s had preliminary talks with the town engineer about what those sidewalks might look like but did not yet have specific details. She was also exploring grant options through the state to cover construction. 

The Halls Road Improvements Committee was introduced by Democrat Bonnie Reemsnyder in 2015 with the goal of advising the Board of Selectmen on how best to develop a master plan for the area. The result evoked images of village-like storefronts and apartments, a pedestrian bridge, more greenspace and sidewalks. 

But Reemsnyder successor Tim Griswold, a Republican, called the vision too grandiose. He said at the time that he preferred to focus on building sidewalks one segment at a time before considering such broad plans. He withdrew a previous zoning proposal to create a Halls Road Village District before it could go to public hearing. 

The recently rejected overlay district application was signed by Shoemaker in November. The proposal was represented at the public hearing by William Sweeney, the attorney for the Halls Road Improvements Committee since 2022.

Shoemaker emphasized HRIC members serve at the request of the Board of Selectmen. 

“We’re going to put them on pause for a little while,” she said.