Financial Woes Discussed at Board of Finance Meeting

By Susan MacEachron

The budget deficit facing the town from the July flooding clean-up, ongoing costs from the gas spill, and recent trouble with the Botelle School boilers were discussed at the Board of Finance (BoF) meeting on Nov. 14.

First Selectman Matt Riiska said he is working with the state to get Local Capital Improvement Funds (LoCIP) released to offset part of the $567,000 in flood clean-up expense. LoCIP funds are provided to towns for capital improvement projects based upon a formula, and Norfolk currently has $208,000 in its allocation.  Riiska said he submitted the required paperwork and has been responding to questions from the state. He assured the BoF that the town will eventually get the money.  

Once the LoCIP funds are received the town still will have to find a way to cover the remaining $359,000 of flood clean-up expense.  A potential solution is drawing from the town’s capital reserve fund, with a current balance of $790,000.  Riiska said he will consult with the town’s auditor, George Sinnamon, about how much could be withdrawn and still maintain an adequate reserve. 

Riiska next addressed ongoing costs related to the gas spill. Three bills have been submitted to Federated Insurance and the first two for $168,000 and $99,000, have been paid in full.  The recently submitted bill for $58,000 covers the cost of attorneys’ fees and housing for residents displaced by the spill. Riiska said four houses along Route 44 remain unoccupied.  Alternative housing costs for two families are being covered by the town and submitted to Federated Insurance for reimbursement.  Riiska expects the town will continue to incur expenses related to the spill for several months.

BoF chair Michael Sconyers asked School Superintendent Mary Beth Iacobelli to describe the issue with the Botelle School boilers. Iacobelli said one of the two boilers at Botelle School recently “went down” and shortly after it was repaired the second boiler broke down.  William Perrotti and Sons (Perrotti) has serviced the Botelle boilers for many years and was able to repair both boilers. However, the boilers are approximately 30 years old and when asked if they needed to be replaced, Perrotti said “yesterday”. Iacobelli is waiting for an estimate on the cost of new boilers.

Sconyers noted that the school has $66,793 in its non-lapsing fund and proposed that the BoF approve the use of $30,000 to repair or replace one of the boilers.  The non-lapsing fund is a mechanism the Board of Education (BOE) and the BoF established to allow a portion of the school budget that remains unspent at the end of any fiscal year to be set aside for unanticipated projects or capital needs in a subsequent year.  The fund can only be tapped with permission from the BoF.  Iacobelli said the BOE approved this use of the fund and asked if the BoF would authorize use of the full amount so that both boilers could be replaced. Sconyers said initially the school should deal with just one. The BoF approved spending $30,000 from the non-lapsing fund. 

In closing, Sconyers recognized that this was the last meeting for two long-term members of the BoF, Graham Allyn and Nina Ritson, and for alternate Catherine Hester.  Sconyers thanked them for their service on the committee and said he would regret not seeing them at the next meeting.

Leave A Comment