To the Editor:

Old Lyme’s Board of Finance (BOF) performs a critical function in setting our level of taxation. One of the determining factors is how much to withdraw annually from the town’s Undesignated Fund Balance (the Surplus), basically our “savings account” not tied to particular expenditures but available for future needs. There has developed a serious disagreement on this issue between David Kelsey and the other Republicans on the BOF on the one hand, and Kim Thompson and the other Democrats on the other. Based on the BOF’s meeting minutes from last spring, it is clear that the position of Mr. Kelsey et al. was to maintain the maximum surplus in order to save for a rainy day. Mrs. Thompson and the other Democrats believed that, with the budget increase caused by the Region 18 bonds and the tax burden imposed on many residents by the revaluation, the rainy day was here and, therefore, the town should withdraw as much from the Surplus as was prudent in order to mitigate the burden on Old Lyme’s taxpayers.

According to the BOF minutes of March 25, an accountant from the town’s auditing firm advised the board that the Surplus as of June 30, 2024 was $14,402,328, representing 35.15% of expenditures. She also stated that “bond rating agencies like to see 15% to 25% and that she typically sees 12% to 15%.”

At the BOF meeting on April 8, 2025, after the Democrats argued for a substantial withdrawal from the Surplus, Mr. Kelsey made a motion to withdraw a mere $400,000. The three Republicans on the BOF voted in favor; the three Democrats against. Additional motions followed at this meeting and the following one on April 15, when Mr. Kelsey moved to withdraw $600,000. This was approved by the Republicans and rejected by the Democrats. Mr. Bernblum recommended a withdrawal of $1 million, which would leave the estimated 2025 Surplus at 29.2% of the proposed budget. Finally, confronted with a deadlock and an upcoming Town Meeting, the BOF approved a withdrawal of $800,000. 

Given this history, there can be no doubt where Mr. Kelsey and the other Republicans stand on the Surplus: keep it as high as possible. Conversely, Mrs. Thompson and the other Democrats would like to return as much to the taxpayers as is prudent without impairing the town’s bond rating or its ability to meet future financial obligations. 

Please decide which policy you prefer when voting on November 4.

Sincerely,

Joseph ‘Gil’ Soucie,
Old Lyme.