Bylaws have several slightly

different definitions depending

on the dictionary used, but

they are basically the rules and

regulations adopted by an or-

ganization to provide a frame-

work for its operation. As

such, they need periodic review

to ensure that they continue to

meet the needs of the group.

Your Board of Governors

appointed a committee in the

fall of 2018 to review our by-

laws, with the plan to update

them in 2019. After publishing

the proposed revisions in early

2019, the committee received

feedback from association

members that prompted the

committee to revisit and mod-

ify its suggested changes.

Your 2020 Spring Packet

contained the recommended

changes to be voted on at our

August Annual Meeting.

Many people have told me

that this year, with the Covid-19

pandemic going on, they have

lost track of what day it is, or

even what month it is. Every day

is just like the previous, except

for putting out the trash and

occasional forays to the grocery

store or pharmacy. I can sympa-

thize although since my hus-

band, Bob, and I retired, every

day is Saturday anyway!

But for Lake Hayward, our

little slice of heaven, time

marches on and before we know

it, the summer will be over. Chil-

dren will be returning to school,

either in person, virtually, or a

combination of the two. Corpo-

rations will be reevaluating the

need for employees to work in

the office and some businesses

will remain closed permanently.

We hope that you continue to

enjoy your time here, even

though we have had far fewer

events than other years. Your

board has tried to keep your

health and safety first and fore-

most in everything we have

sponsored this summer. We will

continue to act in the best inter-

est of the community in the

future as we gaze into the Covid

crystal ball.

Please set aside time to attend

our Annual Meeting at 10 a.m.

on Sunday, Aug. 16 at the Pavil-

ion. We will be voting on the

budget for 2021-22, bylaw

changes, the dam reconstruction

proposal and new members for

your Board of Governors. All

members registered with Kathy

Sabo, our secretary-clerk, will be

able to vote. As at our June

meeting we ask that you practice

social distancing and wear a

mask in consideration of all.

This newsletter has budget

information for your review, a

report from our nominating

committee, bylaw material and

handouts to help you make an

informed decision regarding the

dam.

Come to the Town Hall Meet-

ing on Saturday morning at 10 at

the Pavilion to ask your ques-

tions. If you are interested in

applying for the part-time prop-

erties manager position, please

send your resume and references

to me by this Sunday, Aug. 9.

We plan to start interviews for

the position this week. If you’re

not sure what the position en-

tails, contact me for informa-

tion.

As always, I hope that you

stay safe and stay healthy.

- Bonnie Sudell

As August begins, summer slips by before you know it

Property Owners’ Association

August 8, 2020

Classifieds 2

Summer Events 2

Furious George 3

Dam repairs 4

Movie night 4

Board nominations 6

Inside this issue:

Contact POALH:

POALH

P.O. Box 230

Colchester, CT 06415

Walk-up mailbox:

83 Wildwood Rd.

Email: president

@lakehaywardct.com

8/8 TOWN HALL MEETING,

10-11 a.m. at First Beach

Pavilion

8/8 FURIOUS GEORGE,

1-4 p.m. at First Beach

Pavilion

8/14 MOVIE NIGHT,

Dusk at First Beach

Pavilion

8/15 TRIVIA KARAOKE,

7:30-10 p.m. at First Beach

Pavilion

Upcoming Events

MESSAGE FROM THE PRESIDENT

WHAT: FURIOUS GEORGE

band

WHEN: 1-4 p.m.,

Saturday, August 8

WHERE: First Beach

Lake Hayward

Board will propose bylaw changes for vote at Annual Meeting

BYLAWS

See BYLAWS, Page 2

The Furious George band will be

performing at 1 p.m. on Saturday, Aug. 8

at the Pavilion. Popcorn and cold drinks

for the kids and family will be served.

On Sunday, Aug. 9, join your event

committee at the baseball field, which is

at the south end of the lake. We will be

playing several games for the whole fam-

ily. There will be hundreds of water bal-

loons and start time is noon.

A Karaoke Dance Party is set for

Saturday, Aug. 15 at 7:30 p.m. at the Pa-

vilion. We will have single and duo micro-

phones setup for your best vocal per-

formance. There will also be prizes for

answering trivia questions and, through-

out the evening, the best dance party. The

Pavilion will be decked out, like you

never have seen it done before. Just ask

Roger and Peggy: “That’s right, Jeff. We

know where to go for a great time at Lake

Hayward.”

A quick note: Check out next week's

newsletter as we are planning a Super

Cool Beach Version for the Cake Walk

on Wednesday, Aug. 19, at 7 p.m. Every-

one who attends, please buy your cookies,

cakes or desserts at the store, bringing the

boxed item with you and all of your quar-

ters to the Pavilion. We are teaching a

new socially distant version with a new

twist. Then, on Friday, Aug. 21, we are

having Adult Bingo at 7:30 p.m. We will

have prizes for the winners of the 12

games. Donation per game is $1 and all

12 games are $8. Now that’s a deal. Come

on down to the Pavilion and enjoy your

weekend in a safe and responsible man-

ner. We need volunteers to help. Please

email Jeffc@lakehaywardct.com

Page 2 Lake Hayward

Classifieds

PART-TIME PROPERTY

MANAGER: The POALH is seeking

candidates for the part-time position of

Property Manager. The ideal applicant will

be available year-round, with most time

spent between May 1 and Oct. 31. Re-

sponsibilities include: maintaining associa-

tion property through routine mainte-

nance as directed by the POALH Proper-

ties Committee; investigating association

member concerns and advising the Prop-

erties Committee of corrective actions

required; working with the Properties

Committee to develop the annual operat-

ing budget and capital expenditures budget

for submission to the Budget Committee;

managing the budget set forth by the

Board of Governors; overseeing multiple

projects, developing and maintaining a list

of qualified contractors by trade; accom-

plishing association goals as set by the

Properties Committee, including assis-

tance in developing RFP’s for larger pro-

jects and reporting progress to the Board

of Governors.

Candidates should have at least three

years experience performing light mainte-

nance activities including carpentry, paint-

ing and other miscellaneous tasks and be

able to create documents in Word and

Excel. For information and to submit your

resume, including references, email presi-

dent@lakehaywardct.com.

PLANTS: Potted spring bloomers for

next year: Penstemon, Balloon Flower,

Climbing Magnolia Vine, Foxgloves and

Morning Glories; free and ready to go.

haddamite@protonmail.com

BEDS: One double bed, wooden head

and footboards, painted cream; very

sturdy, metal sides, slats. Taken apart and

ready to go to grateful home. $35.

One queen or double white iron head-

board with wooden posts. Wayfair. Un-

used, ready to assemble (easy to do). Cost

$120; will let go for $50 or best offer. Ea-

ger to sell.

Call Linda at 860-537-2052.

Lakeside events continue with karaoke, cake walk

SUMMER EVENTS

Many of the proposed changes were

added to clarify existing bylaws. For ex-

ample, the word “registered” was added in

several places when referring to members

and voting to reflect voting rights as re-

flected in the charter. Many changes cor-

rected capitalization or pluralization er-

rors. Some changes reflect legal require-

ments, as in the change in posting require-

ments from 7 to 10 days. Some changes

were to permit flexibility. For example,

the bylaws currently state “Said Treasurer

shall be bonded for not less than twenty-

five thousand dollars.” Your bylaws com-

mittee proposes “The Treasurer shall be

bonded for an amount determined at least

annually by the board.” Absentee ballots

were removed in Article VI (Meetings and

Referendums) as the procedure is imprac-

tical and unused. (They need to be nota-

rized and apply only to Special Meetings

and Referenda.) Changes in Article VII

(Taxes) were made to reflect legal require-

ments and the Charter.

Per Section 8 of our charter, approval

of the proposed changes requires an af-

firmative vote of at least two-thirds of

members present at the Annual Meeting.

Your bylaws committee encourages you

to review the recommendations and let

your voice be heard on Aug. 16.

- Jan DePratti, Bonnie Sudell,

Ed Bader

Bylaws committee

BYLAWS: Proposed changes will be voted on

From PAGE 1

Lake Hayward Page 3

Furious George plays everybody’s favorite

music from the 1960s right up through

today. They’ve shared the stage with big

name artists like Los Lobos and Big Shot

and can be found playing for some of the

nicest people at some of the best places

around. Furious George is: Steve Johnson,

Dave Zold, Kevin Finn and George Shea.

They’ve been making music for more than

12 years and have established themselves as

one of the areas top-tier cover bands with

club owners and fans alike.

Page 4 Lake Hayward

Each phase, cost of the dam repairs will be topic of conversation at Saturday’s Town Hall Meeting

At the Annual Meeting of the asso-

ciation on Aug. 16, members will be

asked to approve an additional appro-

priation of $66,000 to fund the con-

struction of Phase 1 of the Dam Re-

construction Project.

Last year, members approved $10,000

for dam repairs, bringing the total esti-

mated cost of Phase 1 to $76,000.

On Aug. 8 at 10 am at the First

Beach Pavilion, the association will

hold a Town Hall meeting to discuss

the Dam Reconstruction Project.

Karl Acimovic, the consulting engi-

neer hired by the association will dis-

cuss the attached schematic of both

Phase 1 and 2 and the related cost of

each Phase.

Here you will see a schematic of the

Dam Reconstruction Project and the

estimated costs of both Phase 1 and

Phase 2. The reconstruction of the

dam is under control of the Connecti-

cut Department of Energy and Envi-

ronmental Protection and the manage-

ment of the dam reconstruction must

be managed by a qualified consulting

engineer.

Upon approval of Phase 1 of the

project, the Dam Committee will work

with Acimovic to develop bid specifica-

tions for the project and solicit bids.

In addition, the Association will seek

other funding sources including grants

from the Town of East Haddam, the

Connecticut State Bonding Commis-

sion and other sources of funding for

both Phase 1 and Phase 2.

Movie night returns on Aug. 14 with a showing of the 2009 Academy Award-winning fantasy “Up”

Join us on Friday evening, Aug. 14, at

dusk at the Pavilion to watch the 2009

Academy Award-winning fantasy “Up.”

This animated classic follows 78-year-old

balloon salesman Carl Fredricksen as he

ties thousands of balloons to his house and

flies off to explore South America in mem-

ory of his deceased wife.

On his journey, he discovers a stowaway

on board, mak-

ing new friends

that include a

talking dog and

deals with an

evildoer who

was his child-

hood idol.

Does he find the mysterious Paradise

Falls? Does he stop the villain?

Find out for yourself as you socially dis-

tance on the sand.

In case of rain, the movie will be shown

under the Pavilion, where face coverings

will be required.

(1 hour, 36 minutes long, rated PG for

some peril and action)

Lake Hayward Page 5

Dam Repairs: Phase I and Phase II

Page 6 Lake Hayward

Nominating committee submits list of four board candidates for consideration at Annual Meeting

The nominating committee has com-

pleted its task and submitted a slate of can-

didates for consideration to fill expiring

terms of existing board of governor mem-

bers.

For the first time in memory, the com-

mittee solicited its candidate pool through

email and social media to promote the im-

portance to get involved in our community.

Our community responded and the com-

mittee had its work cut out to select four

candidates to make up our slate of nomi-

nees.

Each candidate applied addressing key

questions put forth by the committee, as

well as met with the committee to discuss

their interests and skills that could benefit

the board and the community. Part of the

process included discussion on the role and

responsibilities of each board member in-

cluding understanding and abiding by the

governing documents that guide and sup-

port board decisions such as our charter,

bylaws and any related state statues we are

subject to follow..

In accordance with our charter and by-

laws, the POALH nominating committee

presents the following slate of candidates to

be considered and duly elected at the An-

nual Meeting to be held on Aug. 16.

The Bylaws (Article XIII - Nominating

Committee) state that the Nominating

Committee's purpose is to select candidates

for the successors to the members whose

terms are expiring.

The committee met with a field of ten

qualified candidates. The committee estab-

lished a number of objectives and criteria as

part of the vetting process; specifically, to

balance the slate with new members to the

community with relevant skills and experi-

ences, interests, and commitment to pro-

vide long term leadership to our commu-

nity, and include existing members of the

community who have demonstrated com-

mitment and contributions through critical

committee participation and who can bring

a perspective that benefits the existing

board and community. Additionally, the

committee wanted to be sure each district

is represented as best as possible and as

required in our charter; confirm the individ-

ual can attend all required in person board

and association meetings and meet the

technology requirement to comply with

mandated Freedom of Information and

HIPPA requirements.

The following individuals make up this

year’s slate of nominees including the board

position they will fill.

● First Beach Representative (Two -year

term) Evelyn Passan

● Second Beach Representative (Two -year

term) Dave Edgington

● Third Beach Representative (Two -year

term) Corrine Haliday

● At Large Representative (Three -year

term) Angela Buccheri

As provided in our charter, additional

nominations from the floor the day of the

annual meeting is permitted. Candidates

nominated from the floor must identify the

board position seeking to fill and be pre-

pared to address the membership.

With such a qualified pool of candidates,

the committee was able to achieve its objec-

tives. We would like to acknowledge and

thank those listed below who submitted

their application and met with us. You may

recognize some names, and if they are new

to you, you will certainly hear more from

them as they continue to volunteer and stay

involved in our community.

C. Dustin Maurice

Mathew Planeta

John Jacoby

Kim Jonah

Ed Bader

Jeff Conway

Respectfully submitted,

The Nominations Committee 2020:

Gail Miers

John Eckart

Mary LaPorte

Board contacts Bonnie Sudell

President/Second Beach Representative

Public Safety

860-678-1392 (Home)

860-836-5245 (Cell)

BonnieS@lakehaywardct.com

Cindy Biancamano

Second Beach Representative

860-917-5646

CindyB@lakehaywardct.com

Jeffrey Conway

First Beach Representative, Social/Recreation Chairman

401-297-5602

JeffC@lakehaywardct.com

Janet DePratti

Representative at Large, water testing

860-578-5850

JanD@lakehaywardct.com

Hema DeSilva

Third Beach Representative

860-306-6688

HemaD@lakehaywardct.com

Jason Griffing

Representative at Large,

Email alerts and announcements

JasonG@lakehaywardct.com

Gary Petersen

Representative at Large,

Properties Chairman

860-324-9029

GaryP@lakehaywardct.com

Kathy Sabo

First Beach Representative, Recording Secretary

KathyS@lakehaywardct.com

Secretary@lakehaywardct.com

Bill Taylor

Third Beach Representative

860-537-0480

WilliamT@lakehaywardct.com

RESPONSIBILITY 2019-20 2019-20 2020-21 LINE 2021-2022 2021-2022 vs.

CATEGORY OF BUDGET ACTUAL BUDGET 1 PROPOSED 2020-2021

(A/0 6-30-20) (REV. 1-25-20) 2 BUDGET (%)

INCOME 3

BANK INTEREST GRIFFIN 731.00 $ 5,379.30 $ 2,700.00 $ 4 1,650.00 $ (38.89%)

EAST HADDAM EXPENSE REIMB. HALLIDAY/MILLER 6,667.00 $ 6,667.00 $ 7,500.00 $ 5 7,500.00 $ 0.00%

TAX REVENUES 6

CURRENT YEAR TAX REVENUE BADER 196,100.00 $ 195,789.66 $ 185,661.00 $ 7 208,931.00 $ 12.53%

DELINQUENT TAX COLLECTIONS BADER - $ - $ - $ 8 - $ - $

INTEREST ON DELINQUENT TAXESBADER 1,000.00 $ 1,029.85 $ 1,054.00 $ 9 800.00 $ (24.10%)

LIEN AND OTHER FEES BADER 204.00 $ (12.00) $ 10 - $ - $

TOTAL TAX REVENUES BADER 197,304.00 $ 196,807.51 $ 186,715.00 $ 11 209,731.00 $ 12.33%

EAST SHORE DONATIONS GRIFFIN - $ 3,175.00 $ 3,000.00 $ 12 - $ - $

TRANSFERS FROM RESERVES BADER 4,379.00 $ 4,379.00 $ 25,030.00 $ 13 - $ (100.00%)

MISCELLANEOUS INCOME GRIFFIN - $ 75.03 $ 257.00 $ 14 - $ (100.00%)

TOTAL INCOME 209,081.00 $ 216,482.84 $ 225,202.00 $ 15 218,881.00 $ (2.81%)

EXPENSES 16

PROPERTIES PETERSEN 35,000.00 $ 43,542.80 $ 40,000.00 $ 17 37,000.00 $ (7.50%)

PROPERTY IMPROVEMENTS PETERSEN 16,630.00 $ 21,198.00 $ - $ 18 - $ - $

COMMUNICATIONS GRIFFING 5,300.00 $ 4,632.10 $ 5,300.00 $ 19 4,000.00 $ (24.53%)

SOCIAL/EVENTS (NET OF REVENUES)CONWAY 7,500.00 $ 7,502.18 $ 7,000.00 $ 20 6,000.00 $ (14.29%)

INSURANCE BADER 26,649.00 $ 27,022.00 $ 28,345.00 $ 21 27,292.00 $ (3.71%)

PROFESSIONAL FEES 22

FINANCIAL REVIEW GRIFFIN 2,500.00 $ 2,500.00 $ 2,500.00 $ 23 2,500.00 $ 0.00%

LEGAL FEES BADER 3,000.00 $ 2,118.50 $ 5,500.00 $ 24 4,000.00 $ (27.27%)

PUBLIC SAFETY SUDELL, B 5,800.00 $ 5,813.37 $ 4,000.00 $ 26 3,300.00 $ (17.50%)

REAL ESTATE TAXES GRIFFIN 3,500.00 $ 3,595.44 $ 3,500.00 $ 27 3,670.00 $ 4.86%

STIPENDS 28

ASSISTANT SECRETARY GRIFFIN 2,000.00 $ 2,000.00 $ 2,000.00 $ 29 2,000.00 $ 0.00%

TAX COLLECTOR BADER 7,000.00 $ 7,000.00 $ 7,000.00 $ 30 7,000.00 $ 0.00%

TREASURER GRIFFIN 9,500.00 $ 9,500.00 $ 9,500.00 $ 31 9,500.00 $ 0.00%

WEB MASTER TROCCHI 2,000.00 $ 2,000.00 $ 2,000.00 $ 32 2,000.00 $ 0.00%

FINANCIAL ADVISOR BADER 987.00 $ 987.00 $ 1,000.00 $ 33 1,000.00 $ 0.00%

PROPERTY MANAGER - $ - $ 4,000.00 $ 34 4,000.00 $ 0.00%

TOTAL STIPENDS 21,487.00 $ 21,487.00 $ 25,500.00 $ 35 25,500.00 $ 0.00%

WASTE MANAGEMENT GRIFFIN 44,000.00 $ 43,884.00 $ 44,000.00 $ 36 45,000.00 $ 2.27%

LQIC HALLIDAY 16,465.00 $ 12,994.64 $ 21,907.00 $ 37 23,219.00 $ 5.99%

CAPITAL RESERVE CHARGE BADER 8,000.00 $ 8,000.00 $ 25,000.00 $ 38 25,000.00 $ 0.00%

WEB MASTER TROCCHI 1,150.00 $ 922.79 $ 700.00 $ 39 700.00 $ 0.00%

UTILITIES GRIFFIN 8,500.00 $ 7,980.01 $ 8,700.00 $ 40 8,200.00 $ (5.75%)

TAX COLLECTOR BADER 3,600.00 $ 3,482.01 $ 3,250.00 $ 41 3,500.00 $ 7.69%

TOTAL EXPENSES 209,081.00 $ 216,674.84 $ 225,202.00 $ 42 218,881.00 $ (2.81%)

43

NET INCOME (LOSS) (192.00) $ 44

Budget Committee Proposed Budget 2021-2022

1

Page 1 of 5

REPORT OF THE 2021 - 2022 POALH BUDGET COMMITTEE (July 30, 2020) The Budget Committee submitted the attached fiscal 2021 - 2022 (July 1, 2021 - June 30, 2022) Budget to the Board of Governors (BOG) at its July 22 meeting, where it was approved. The Budget Committee convened four times in July. During these meetings it met with committee chairs and individuals responsible for specific line items in the budget to evaluate the requested budget amounts. An Association Town Hall was held July 18 to discuss the proposed budget with the membership prior to its submission to the Board. There was thoughtful and extensive dialogue throughout this process. The result is a balanced budget that is reasonable, meets the needs of the Association, and addresses the operating budget and capital challenges of the Association.

2021 - 2022 BUDGET CHALLENGES

• Replacing Revenue - the Revenue challenge was to replace two nonrecurring revenue sources that are in the 2020 -2021 budget … East Shore Donations and Transfers From Reserves totaling $28,030 (12% of the operating budget).

1. East Shore residents voluntarily donate funds to POALH each year for weed

treatment. With the upcoming large dam repair costs, East Shore residents are highly motivated to help fund the dam restoration and have requested that all funds they raise be applied to the capital expense for the dam repair projects. As a result, an East Side Dam Repair Reserve will be established and funded by their voluntary donations and the East Shore Donations line item will no longer appear in the operating budget. $3,000 was budgeted for 2020 - 2021 operating funds. This line item is now removed from the proposed operating budget.

2. The Transfer to Reserves in the 2020 - 2021 operating budget ($25,030) resulted

from revenues exceeding expenses in fiscal 2018 - 2019. Consistent with POALH policy, any amount not spent from the most recent prior year (2018 - 2019 in this case) are held in reserve and utilized as a revenue source in the second succeeding year (2020 - 2021 in this case). For the year just ended June 30, 2020, there were no unexpended funds to help with the new budget, so this line item is $0 for 2021 - 2022. In the Recommendation section later in the report, we offer a remedy for the budget roller coaster effect caused by this policy.

• Develop a capital reserve plan to generate sufficient funds to handle approximately $200,000 of dam repairs in the next five years.

HIGHLIGHTS OF THE 2021 - 2022 OPERATING BUDGET The overall 2021 - 2022 Operating Budget decreased by 2.81% from the 2020 - 2021 budget and is up 1% from the 2019 - 2020 actual expenses. The Budget Committee was faced with controlling expenses to help modify the mill rate increase resulting from the loss of the two revenue sources (East Shore Donations and Transfers From Reserves) described above. The Committee’s budget recommendation with the 2.81% decrease still provides adequate funding for the core responsibilities of POALH as defined by our Charter, which stipulates in Section 3:

“The objects of said association shall be to provide for the improvement of the land in said territory, its maintenance as a residential area, the health, comfort, safety,

Page 2 of 5

protection and convenience of the inhabitants thereof and the maintenance and protection of the lake."

REVENUES

• Tax Revenues, Interest on Delinquent Taxes, Mill Rate - Tax revenues are budgeted at $208,931, which is a 12.5% increase over the current budget but a more modest 6.5% increase over taxes budgeted in 2018 - 2020. The reason for this increase is to make up for the revenue loss of $28,030 as noted above in 2021 -2022 Budget Challenges. Even with budgeted expenses reduced by $6,300, a tax increase is unavoidable to maintain a balanced budget.

Interest on Delinquent Taxes is budgeted $254 less than the current budget as it is estimated delinquent taxpayers will pay approximately $800 in interest charges for their failure to pay their taxes on time. The mill rate will increase from 4.115 mills in 2020 - 2021 to approximately 4.6 mills in 2021 - 2022.

• East Haddam Expense Reimbursement - POALH continues to receive reimbursement from the Town’s budget through the efforts of the East Haddam Lakes Association. Reimbursement amounts to 50% of qualified expenses related to limnologist water analysis and advice, weed treatment, water testing, education of lake residents and other direct efforts to preserve the health of Lake Hayward up to a maximum annual reimbursement of $7,500. It is projected this amount will remain in the Town’s operating budget for 2021 - 2022.

• Bank Interest - Interest rates are anticipated to remain low and our deposit balances will decrease due to dam repairs.

EXPENSES

• Properties - The Properties operating budget decreased $3,000 (7.5%) from the 2020 - 2021 budget but still remains $2,000 higher than the 2019 - 2020 budget. Properties operating expenses include a wide array of ongoing maintenance including mowing, trimming, spring and fall cleanups, beach sand reclamation, port-a-potty cleaning, basketball and tennis court maintenance, tree removal and trimming. Also included are expansion of boat racks due to increased demand and continuing to survey rights-of-way to determine boundaries.

• Communications - The Communications budget includes the weekly newsletter, postage and supplies. The 2021 - 2022 budget decreased by $1,300 from the (25%) 2020 - 2021 budget and by 14% from the 2019 - 2020 actual budget. The decrease is driven by printing and postage savings emanating from the decision to provide the Spring Packet in electronic form only (through email and on the website).

• Social/Events (Net of Revenues) - This budget is the net cost (event costs offset by revenues associated with specific events/activities for which there is a fee) of all events/activities POALH holds for its members and families such as bands, adult and kids crafts, dinners, golf tournament, triathlon and Lake Hayward Days events. Actual expenses for social/events are more than double the amount funded through the budget since some activities have fees. Even with the budget decrease of $1,000 (14%), the same number and

Page 3 of 5

diversity of events are attainable by increasing the focus on generating additional event revenues so that more events, especially the adult only ones, are held on a breakeven basis. See Recommendations section below.

• Insurance - Insurance costs remain stable with a small increase over 2019 - 2020 actual expenses and an almost 4% decrease relative to the current year budget. The Association has approximately $500,000 of tangible property covered under its Property insurance policy. POALH also carries General Liability, Workers Compensation, Directors & Officers’/Crime policies and an Umbrella Excess Liability Policy as recommended by our insurance agency and agreed to by the Board.

• Professional Fees - This budget decreased 19% from 2020 - 2021 anticipating a drop in legal fees. Fees to our independent accountants, who conduct an annual financial review of the Association’s financial statements, are unchanged.

• Public Safety - The Pubic Safety Committee contracts with the East Haddam Police Department and CT State Police to provide security at Association events as needed. Other costs include signage for specific events.

• Real Estate Taxes - The East Haddam mill rate remained unchanged for 2020 - 2021 but budgeted for 2021 - 2022 is a 2% increase over 2019 - 2020 actual taxes on Association property.

• Stipends - There are no changes in stipends relative to the 2020 - 2021 budget.

• Waste Management - An increase of $1,000 is budgeted as there has not been a fee increase in several years. This fee is for weekly collection of property owners’ waste in Fall, Winter and Spring and twice a week collections in the summer months.

• LQIC Operating Expenses - Critical to maintaining the health of the lake and property values are activities managed by LQIC, including the annual spot herbicide treatment of invasive weeds by our contractor Solitude, limnologist fees to analyze and report on lake water samples taken during the summer by volunteers and educational events for members that provide information we all can use to maintain and hopefully improve the quality of lake water and the watershed.

• Capital Reserve Charge - The $25,000 charge is to build the reserve to fund capital projects. The amount is unchanged from the current budget. More information is provided in the following section entitled Reserve Summary.

• Web Master Expenses - This budget covers all the costs of maintaining the Association’s website except for the webmaster’s stipend.

• Utilities - Included in this line item are electricity, water, cable for the Association’s video security system and the Association’s record retention system.

• Tax Collector Expenses - These expenses include the Association’s online property tax and collection system and printing the tax bills. Other costs include postage, envelopes, paper, toner and membership in the Connecticut Tax Collectors Association.

Page 4 of 5

RESERVE SUMMARY

The two-page capital reserve analysis shows the proposed five-year capital projects (Proposed Capital Expenditures) and Pending Future Capital Projects that can be undertaken if funds are available. The second page (POALH Estimated Reserve Summary) illustrates a 10 year capital buildup to fund projects in the pipeline (Pending Future Capital Projects) and provide a reserve for additional projects. Notables on this page are that a) reserves will be significantly drawn down due to the dam repair projects, and b) receipt of grants in support of capital projects can significantly expedite the completion of projects on the Pending Future Capital Projects list. Implementation of the specific Budget Committee recommendations below (see #2 and #3) can have a major impact on improving Association finances, decreasing pressure to increase taxes in coming years and accomplishing pending projects more expeditiously. Requiring approval at the August 16, 2020 POALH Annual Meeting is appropriation of $66,000 to rebuild the dam’s east spillway in 2021 - 2022. The total estimated cost of Phase 1 of the dam repair is $76,000, but $10,000 was already approved at the August 18, 2019 POALH Annual Meeting. See Motions section below.

RECOMMENDATIONS OF THE 2021 - 2022 BUDGET COMMITTEE 1. It is current policy to hold in reserve and use as a revenue source in the second succeeding

fiscal year any amount not spent from the most recent prior year. Recommended is that: A. This practice be discontinued as it can and has resulted in sizable swings in taxes billed

to residents and made preparing the operating budget challenging and confusing. B. A new policy be adopted to transfer to unallocated reserves any amount not spent from

the prior year. This will minimize large swings in taxes billed to residents, enhance operating budget development and hopefully add funds to reserves, which is particularly important given the significant capital needs of the Association in the coming years. See Motions section below.

2. Completion of the Watershed Management Plan is critically important if POALH is to seek

grants to offset a portion of the upcoming $201,000 in projected dam repair expenses and other lake protective measures. The Board is strongly encouraged to ensure the Watershed Management Plan is completed no later than Spring 2021, sooner if possible. Completion of the Plan will be beneficial to managing the lake, its watershed and will significantly enhance our ability to qualify for “larger” grants.

3. There is an acute need for POALH to have a grant coordinator to develop and manage a

grant process, with responsibilities ranging from locating grants available, preparing grant applications, tracking the use of grant funds received and ensuring proper reporting to the grant provider. This should be done as soon as possible as POALH has left grant opportunities “on the table” in recent years.

4. Develop and implement untapped revenue sources. There is currently substantial pressure

to reduce the expense budget, as evidenced by the proposed 2021- 2022 operating budget. Possibilities for additional revenue streams, among others, are a) a subscription fee to receive a hard copy newsletter, b) a fee for private use of the pavilion, c) fees for adult events (i.e. crafts, dinners) so they are self funded by the participants d) fundraising events, and e) obtaining grants. POALH should continue to control expenses, while also focusing on building additional revenue sources.

Page 5 of 5

MOTIONS

Below are motions recommended by the Budget Committee for the Annual Meeting: Motion: “Move to approve the 2021 - 2022 POALH operating budget presented by the Budget

Committee totaling $218, 881.” Motion: “Move to approve the $66,000 capital expenditure to rebuild the dam’s east spillway.” Motion: “Move to replace the policy of carrying forward unexpended operating funds to a future

operating budget with a policy to transfer any unexpended operating funds to Unallocated Capital Reserves.

SUMMARY

The Budget Committee thanks all the members involved in the 2021 - 2022 budget process for their efforts. The budget development process continues to improve each year in an effort to have a thorough, well thought out and transparent budget that supports objectives in POALH’s Charter. Your comments are welcomed before and during the Annual Meeting. Respectfully submitted, Ed Bader, Chair; Lee Griffin, POALH Treasurer; Dave Edgington; Kim Jonah; Randy Miller

POALH Estimated Reserve Summary (7/30/2020)

Year Ending June 30

Beginning Capital Reserve

Fund

Reserve additions from Op Budget

Grants & Town

Support ***

Special Assess-ment

Actual Expenditures

Proposed Capital

Expenditures **

Ending Capital

Reserve Fund

2020 $140,000 $8,000 $15,000 $0 $51,043 $111,957

2021 $111,957 $25,000 $0 $15,000 $121,957

2022 $121,957 $25,000 $0 $66,000 $80,957

2023 $80,957 $25,000 $0 $0 $105,957

2024 $105,957 $25,000 $0 $0 $130,957

2025 $130,957 $25,000 $0 $125,000 $30,957

2026 $30,957 $25,000 $0 $25,000 * $30,957

2027 $30,957 $25,000 $0 $25,000 * $30,957

2028 $30,957 $25,000 $0 $25,000 * $30,957

2029 $30,957 $25,000 $0 $25,000 * $30,957

2030 $30,957 $25,000 $0 $30,000 * $25,957

Totals $258,000 $15,000 $0 $51,043 $336,000

* Projects identified as Pending Future Capital Projects on attached Proposed Capital Expenditures spreadsheet** See Proposed Capital Expenditures spreadsheet*** 2020 is one-time disbursement from Town of East Haddam Lake Capital Fund

1

Proposed Capital Expenditures (as of 7/30/20)

Year Ending June 30 Description Est.Cost Year Total

2020 Dredge Project - 3rd Beach $ 41,000 CompleteDam Repairs - Phase 1 $ 10,000 See 2022 -Dam Rebuild East SpillwayPurchase of Hay Field Road Parcel $ 12,500 CompleteAED - 3rd Beach $ 2,000 $ 65,500 Complete

Proposed Capital Projects:2021 Watershed Management Plan Development $ 15,000 $ 15,000 Approved at 8/18/19 Annual Meeting

2022 Dam - Rebuild east spillway $ 66,000 $ 66,000 Total project $76K, $10K in reserves. Seek approval at 8/16/20 Annual Mtg.

2023 N/A

2024 N/A

2025 Dam - Rebuild west spillway $ 125,000 $ 125,000

TOTAL PROPOSED PROJECTS $ 206,000

Pending Future Capital Projects:Bio-detention basin construction $ 30,000 Replace fence -2nd Beach Parking Lot $ 15,000 Replace raft - 3rd Beach $ 3,000 Replace fence -3rd Beach Parking Lot $ 7,000 Fence around basketball court $ 10,000 Replace chain link fence - 3rd Beach $ 15,000 Repave basketball court $ 7,000 Approved at 8/18/19 Annual MeetingLake Hayward Sign - South Entrance $ 3,000 Approved at 8/18/19 Annual MeetingDredge Project - 2nd Beach $ 40,000 TOTAL PENDING PROJECTS $ 130,000

TOTAL CAPITAL PROJECTS $ 336,000

1