East Lyme Finance Board Sets FY2027 Mill Rate

EAST LYME, CT — The East Lyme Board of Finance unanimously approved a 28.95-mill tax rate for fiscal year 2027 and advanced nearly $5.3 million in bonding authorizations for capital improvements and water system projects during a special meeting June 11.

The board voted 5-0 to set the FY2027 mill rate at 28.95 mills, an increase of 0.94 mills from the current fiscal year. The action followed voter approval of the town budget in a second referendum.

Board members also unanimously approved a resolution recommending that voters authorize $3,974,425 in bonding for various town capital projects. Finance Director Kevin Gervais said the authorization covers projects previously reviewed during budget deliberations and allows the town to finance improvements if necessary. He emphasized that the action authorizes borrowing but does not require the town to immediately issue debt. Instead, officials expect to use available cash flow to fund projects initially and defer borrowing unless expenditures ultimately warrant it. The motion passed 5-0.

During discussion, board member Kim Kalajainen asked whether a recently announced $300,000 state grant for the townwide radio communications project had been incorporated into the capital plan. Gervais said the grant would primarily offset costs planned for next year and reduce future borrowing needs for the public safety communications system.

The board also voted 5-0 to recommend approval of $586,701 in bonding for Board of Education capital improvements, including school HVAC recapitalization and technology projects. Gervais said the amount reflects funding decisions made during the recently completed budget process, including shifting a portion of technology expenditures from cash funding to debt service.

Two additional bonding resolutions addressed the town's response to emerging federal and state regulations governing per- and polyfluoroalkyl substances, commonly known as PFAS. The board unanimously approved $378,000 for design work on a PFAS removal facility at Well 4A and $372,000 for design of a treatment facility serving Wells 1A and 6. Both resolutions passed 5-0.

Gervais told board members the appropriations fund design work only and will provide cost estimates needed before construction funding is sought next year. First Selectman Dan Cunningham said the facilities will house activated carbon filtration systems designed to remove PFAS from drinking water supplies. He said the town has already reduced output from wells where PFAS has been detected so that blended water remains below current safety limits.

The board heard comments from resident Tim Dowd, who thanked members for their work during the budget process and urged earlier communication between the Board of Finance and Board of Education during future budget cycles. Dowd said earlier discussions could help address concerns before annual budget deliberations reach their final stages.

During board comments, Chairman Scott McCallister and several members discussed reviewing the budget process later this year. Members suggested exploring ways to improve communication among town officials, school officials and residents before preparation of the next budget begins.

The board adjourned after approximately 30 minutes. All votes taken during the meeting were unanimous.