East Lyme Finance Board Reviews School Cuts, Stronger Town Finances And Budget Forecast

EAST LYME, CT — East Lyme's Board of Finance reviewed school staffing and transportation reductions, received an update showing stronger-than-expected town finances and approved the appointment of auditors during its July 8 meeting.

The meeting was held at East Lyme Middle School. Board members Scott McCallister, Barry Sheckley, Sandra Bullock and Lauren McNamara attended, while Richard Steel and Kim Kalajainen were absent.

Finance Director Kevin Gervais reported that East Lyme collected 99.36 percent of its taxes, compared with 99.2 percent the previous year. A tax sale contributed about $175,000 in collections of overdue taxes. Unpaid taxes at year-end fell from about $586,000 to about $511,000, according to the meeting minutes.

Gervais also reported that the town's financial results were better than earlier projections. For the 2024-25 fiscal year, the town had a budget of about $91.5 million, collected approximately $90.2 million in revenue and spent about $90.36 million. The town had expected to use about $1 million from its fund balance but was estimating a need for only about $200,000 as the audit continued.

Several revenue sources exceeded projections. Private-duty police services generated about $250,000 against a $125,000 budget, while interest income reached about $1.6 million compared with a budgeted $1.25 million. Town Clerk conveyance fees were about $200,000 higher because of several large property sales, and building permits generated more than $1 million.

The town also recorded savings in several departments, including about $40,000 in the Building Department, $175,000 in the Police Department and $50,000 in the Highway Department.

Gervais said updated figures could potentially result in approximately $1 million being added back to fund balance rather than the town drawing roughly $1 million from it. He cautioned that the figures were preliminary and subject to the audit.

School District Details Budget Reductions

A substantial portion of the meeting focused on the Board of Education budget following a year in which two budget referendums were needed.

Board of Education Chair Eric Bauman and Superintendent Jeffrey Newton discussed changes made by the school district to meet its revised budget. The district eliminated the equivalent of 17.9 full-time positions, although some reductions involved cutting the length or hours of positions rather than eliminating jobs entirely.

The district also cut two building substitute positions, removed one bus from its fleet and eliminated the late bus serving middle and high school students.

Bauman said the district had previously experienced problems after reducing its bus fleet by two vehicles about five years ago, including longer routes, crowding and delays. The buses were eventually restored. Despite that experience, the district is trying a one-bus reduction because of the latest budget cuts, according to the minutes.

Newton said 10 paraeducator positions eliminated from the 2026-27 budget had already been vacant and that no current employees lost their jobs as a result. Other staffing reductions were handled through retirements, transfers, reduced hours and vacancies. Some positions had also been established as one-year jobs because of uncertainty about enrollment and future budgets.

The district is also changing its mix of school security personnel. Newton said some armed security officers will replace unarmed positions, while the district will have one fewer security position overall. He said the district does not publicly disclose actual security staffing levels.

Sheckley questioned continued spending on programs including a Connecticut Association of Boards of Education membership, listed in the minutes at about $20,000, and Project Oceanology, at approximately $42,000 to $47,000, while instructional staffing was being reduced. Newton said the Board of Education believes the programs provide significant value to students.

School officials also said a new enrollment study is expected in the fall. Projections consider housing development, birth rates and local trends, and officials said East Lyme's enrollment has remained relatively stable. Newton said updated student performance data would also be presented after state results are released.

Brookside Farm Museum Director Raises Salary Cut

Brookside Farm Museum Director Anna Perch appeared before the board to discuss a 50 percent reduction in her salary.

Perch told members that the reduction would make it difficult to administer the museum's programs, grants and community partnerships. She described Brookside's work involving local history, environmental restoration, biodiversity and community events and said she was managing three grants, including projects involving forest restoration, wetlands improvement and deferred maintenance.

Perch said she had identified a way to reallocate Brookside's existing budget to restore $14,600 of her salary without taking funding from elsewhere and planned to present the proposal to Cunningham and Gervais.

Old Police Station Under Environmental Review

First Selectman Dan Cunningham updated the board on the assessment of the former police station property.

The work includes reviewing records and testing the building and property. Interior samples were being analyzed for possible asbestos, lead, mold and other hazards, with outdoor testing planned after East Lyme Day.

Cunningham said a public survey at East Lyme Day would gather residents' views about the property. The town will eventually have to consider whether to take ownership, seek cleanup grants or pursue other options, according to the minutes.

Board Approves Auditor, Discusses Future Budget Model

The board voted 4-0 to appoint CliftonLarsonAllen LLP as East Lyme's auditor for fiscal 2026.

Gervais said the town would ordinarily seek proposals for audit services but that the Connecticut Municipal Finance Advisory Committee recommended retaining the current auditor until East Lyme's audits are caught up. The goal is to finish the 2025 audit, complete the 2026 audit by around this time next year and then seek bids for the 2027 audit.

Gervais also outlined a long-term budget projection model he is developing with Sheckley. The model is intended to forecast future revenues, expenses and spending limits and give departments information about the town's financial expectations before they submit budget requests.

Board members discussed testing the model against previous budgets and making the projections available to residents. They also discussed holding a public meeting or hearing to receive feedback.

Cunningham said public involvement during the most recent budget process had been useful and that earlier involvement and greater transparency could reduce misunderstandings about municipal finances. Board members agreed that the budget projection project should remain on future agendas so residents can follow its development.

The board also reviewed a draft policy governing short-term investment of town cash reserves. The Town Council is expected to review the policy before it returns to the Board of Finance for a vote.