NEW YEAR, SAME OLD B***S***

The following blog post is from Danielle Walsh's new blog, " Keeping Middletown Informed". It's the first of many that has been promised by Danielle. I can't wait to read more.  The post below is published here with her permission. Enjoy - MM

January 04, 2019

NEW YEAR, SAME OLD BULLSHIT

'The Middletown Board of Education and Township Committee are now in a race to decide when you will vote for School Board Members with zero input from YOU'
First, I apologize for the vulgarity, but sometimes I am astonished at the lack of respect and trust the Township Committee and the Board of Education have for each other. If you thought a new year and new members would bring a change, think again.

It's no secret the BOE and the TC haven't always seen eye to eye. As I former BOE member and president myself, I've encountered the frustrations of trying to create common ground. The Middletown residents, however, have made it crystal clear that they want to see a better working relationship between the two entities to not only reduce taxes, but to keep the public better informed of issues that affect their families. And in turn, all the candidates who ran this year for both BOE and TC made 'working together' and 'transparency' a central platform of their campaigns.

So here's the latest beef as I see it...There have been passing statements made by members of the Township Committee since the election, that they felt the Board of Education elections should be returned to April. Here's where it gets a little complicated so bear with me while I give you some background...

-BOE elections are presently held in November. There are no party affiliations on the ballot and they are purposely sectioned away from party-specific positions on the physical ballot.
-November elections are directly tied to a 2% cap on the BOE's budget, meaning the BOE may not raise their overall budget by more than 2% in a given year thereby limiting any taxpayer increase. (There is a minor exception with banked cap.) The budget, in turn, does not have to be voted on by the public.
-We used to have BOE elections in April several years ago, but we moved them to November.
- Moving elections to April, would eliminate the cap of spending, and allow the BOE to present any increase they feel necessary with the codicil that is will now be voted on by the public. There were several budgets passed with increases up to 11% to the taxpayer when this was the case.
- If the budget does not pass, it would be turned over to the Mayor for revision.

Still with me? Great! At my last BOE meeting in December, these statements and/or rumors from the TC were addressed. Our attorney told the BOE (all in public and on video at the middletownk12.com website) that basically, whoever passes a resolution first gets to decide when these elections occur, (which seems ridiculous to me, but I digress). I advised my fellow BOE members, that although I did not trust the motivation for the TC's talk of this that they should reach out and try to work together as well as table the decision making until the two new BOE members were sworn in.
On January 2nd, the new BOE had a discussion about passing a resolution to prevent the move to April elections, as a number of BOE members felt strongly that the move was frivolous, among other reasons. There was also further talk of having the resolution prepared for the January 15th meeting, giving the public and the TC about 2 weeks to digest the idea and allow time for discussion with the TC.

Keep in mind here, as stupid as it sounds, whichever governing body passes their resolution first, wins this debate.

Fast forward less than 48 hours later...The TC sends the BOE their resolution to move the elections to April. No public discussion, as the BOE did. No input from the public, which the BOE did. They sent the resolution and informed them it would be voted on at the Township Committee Re-organization meeting on...(wait for it)...Sunday morning....Seriously? The first official act of this new TC is to undermine the BOE and dictate to them, without any time for input or public opinion, when their elections should be.

Not to be outdone , the BOE quickly reacted by sending public notice with intent of their own of passing a resolution keeping the elections in November. The BOE meeting is 9 am Sunday. The TC Meeting is 10 am Sunday morning....Neither meeting is a particularly accessible time of the week for residents to get involved or give residents enough time to learn about the issue, but both are open to the public.

So the pettiness, blame-game and political battle will continue into the new year for the TC and the BOE. The audacity of the TC to presume to know what's best for the BOE without sufficient consultation with them is alarming. There are two sides to the timing of school board elections, and I see validity in both, as I outline below, but to push this through quickly, without public input or even school board input is a deceptive and arrogant move by the TC. My suggestion to you is to share this information and write the TC and BOE and demand your input be counted and transparency be a priority. Otherwise, we will continue to be dictated to and told our voices are obsolete. It is sheer hubris that allows our elected officials in the TC to presume issues are too complicated or too unimportant for our input. And I find it terribly ironic that our TC spouts about the importance of keeping taxes down, while simultaneously voting for measures that cost us more money, and have the potential to raise taxes exponentially.

Here's my take on the pros and cons of April/November Elections....

April...Pros
-Likely a more informed voter base, as school elections draw out those who know the candidates, with the possibility of less votes based on presumed political affiliation
-Public input in the budgeting process for the BOE. The Budget Ad Hoc Committee (of which I was a member) was designed to help inform and sell the public on what their money is being spent on.
-The public votes on whether to approve the budget.

April Cons...
-The additional cost of approximately $40,000 to run the elections separately will be assessed to the BOE, who has already lost $1.3 million to state cuts.
-previously elected BOE members to 3 year terms will be cut approximately 8 months, undermining the will of previous voters.
-Budgets have the potential to skyrocket if approved by the turnout of residents.
-Voter turnout is substantially lower
-If a full day of voting, another day added to the school year, if school's close.
-If a 4-9pm voting window, the possibility on minimal voter turnout broadens and could be considered voter suppression.
-2% cap is lifted on BOE budget.

If the Budget fails during April elections, the mayor would be responsible for revisions and quite honestly, I believe this is why this nonsensical pissing match is happening. The Township Committee wants more oversight of the BOE. Tony Fiori is still whining about losing his precious Stevenson Park Complex and being asked by the public to work with the BOE to upgrade fields. But ask yourself who is more qualified to make financial decisions that concern our children? The BOE Business Administrator and Superintendent in conjunction with teachers, principals, parents/residents and the 9 people elected to the BOE or our (likely) new mayor Tony Perry, who has shown himself at the very least to be dishonest in his campaign practices with zero experience in what our children need to succeed?

No other district in the state has ever gone back to April elections after moving them to November. That doesn't bar us from doing it, but it should give us pause to take our time, talk it out in public, get input and make the right decision, instead of this race to mediocrity we have in Middletown with these rash decisions, excluding all public input. Let's take a step back, take our time and do the right thing for the taxpayers and more importantly our children...

Please share, share, share and help keep Middletown Residents Informed!

Middletown BOE Public Hearing on the Proposed 2014-2015 Budget on May 5, 2014: Tax Levy Expected To Be 3.6%

I found the following press release (see below) on the Middletown Board of Education (BOE) website. There will be a public hearing this upcoming Monday night, May 5th on the proposed 2014-2015 school year budget. According the press release the proposed school budget is expected to include a 2% tax increase.

The press release also states that the BOE plans to utilize a portion of the district's "banked" tax levy saved  from previous years, to fund a pending pension liability assessment from the New Jersey Division of Pensions and Benefits. What the press release doesn't state though is how much of an additional levy will be imposed through the use of the banked cap levy.  The BOE would prefer to inform residents at the meeting Monday night.

Don't fret however, you needn't  wait all weekend to find out. I've learned that the there will be an additional 1.6% added to the  tax levy to fund they pension liability, which would bring the overall tax levy for the upcoming school year to 3.6%.

If you have any further questions about  the proposed budget make sure to attend Monday's BOE meeting and ask. I'm sure you'll get the answers you're be looking for.



FOR IMMEDIATE RELEASE:

Middletown, New Jersey, May 1, 2014 – The Middletown Township Board of Education will be
conducting a public hearing on its final proposed budget for the 2014-2015 school year on Monday,
May 5th at 8:00 p.m. at Middletown High School North, 63 Tindall Road, Middletown.

The Board of Education approved a tentative budget that includes a 2% increase in the tax levy. The
final proposed budget that the Board will be voting on at this meeting includes the utilization of a
portion of the district’s total banked tax levy to fund a pending pension liability assessment from the
New Jersey Division of Pensions and Benefits. The banked cap utilization will increase the 2014-2015
tax levy. This change will be discussed at the May 5th public hearing.

The May 5, 2014 voting meeting agenda is currently posted online at www.middletownk12.org. 

Independent Article On $1.2M Increase In School Budget Gives Potential Insight Into This Year's Municipal Budget

Last week's Independent had an article about the Middletown Board of Education's budget introduction for the upcoming 2013-2014 school year," Decline in property values drives M’twn school tax hike; $78M loss in property valuations contributes to $1.2M tax levy increase", this article may give us some insight into what this year's municipal budget may have in store for us. I recommend reading the article, it went into great detail explaining how the budget for the upcoming school year was put together and what were the priorities. You can then take a look at the Budget Presentation that the school administrators put together for its introduction that took place back on February 27th.

On Wednesday night this week (March 20th), the Middletown Board of Education will hold a public hearing on the budget, after which a vote will take place for its adoption.  

 Here's a snippet from the Independent article:

MIDDLETOWN — Declining property values throughout Middletown contributed significantly to the tax levy increase in this year’s district Board of Education budget.

Proposed at the Feb. 28 board meeting, the $147,856,250 budget represents a tax levy increase of $1,250,042 over last year, which would account for a $68.90 annual hike for residents with a home valued at the township average of $375,500.

That increase is offset, however, by a decrease in the district’s annual debt service payments caused by recent refinancing. The total taxpayer increase would stand at $53.24 per year, or $4.44 per month.

According to board professionals, much of the increase is due to the loss of $78 million in township tax assessment valuations throughout the past year....

The only issue that I have with this article and the budget presentation is it states that the tax levy will increase by $1.2M  due to the loss of $78M in property values caused by Hurricane Sandy. However, it does not give us the exact percentage of the increase, only saying that it keeps this years tax levy below the state mandated 2% cap. Based on my calculations that's correct, I figure the increase to be ~ 1.5%, which is fine. I just wish that the people putting this stuff together treated their intended audience as grown-ups and not children, you'll see what I mean when you examine the presentation.

The presentation goes to great length to explain how well the administrators have done over the past 3 years staying within the parameters of the mandated cap, using that argument to justify this years increase. I find this type of justification nauseating. I'd feel better about it if the school administration just stated the facts and not try to tippy-toe around the truth of the situation, which is, thanks to the damage caused by Hurricane Sandy throughout the township, property values are down and the school district can't make any further cuts to  the upcoming budget without severely effecting the education of our kids.

Knowing that the loss of  township property values is now at $78 million (as per the school budget) and the costs to clean up after Hurricane Sandy is in the millions of dollars, some of but not all of which, will be reimbursed at some point by the federal government and knowing that this years municipal budget should still be in the neighborhood of $65 million as in previous years, supported by a tax levy of nearly $45 million, I don't see how this year's budgeted tax increase will be below the state mandated 2% cap on property taxes.

Last year's tax cap increase was 1.97% and seeing how nothing significant has changed, we can use that as the baseline for this year's increased. Add to it an increase in the cost to health-care and other benefits along with all the clean-up costs associated with Hurricane Sandy and the $78 million hit taken from lost property values, I'd say that Middletown is looking at a budget increase of nearly 5% or more on top of our baseline, making this years increase in the neighborhood of 7% or potentially greater.

If this year's increase to the tax levy is going to be greater that 2% we should know within the next month or so. Middletown will need to ask its residents to approve the budget increase on Primary Day, June 4th.





  

NJ mayors feel squeeze of tax cap, rising costs

There's an article on-line today at the Asbury Park Press's website (posted below) talking about about how mayors all throughout the state, are crying that they are under financial pressure due to Governor Christie's 2% cap on property taxes.  Local expenses are rising faster than 2% annually and there isn't enough revenue coming in to offset the rising costs of health insurance and other essential items in their budgets.

The League of Municipalities President Janice Mironov,.herself the mayor of East Windsor, is once again calling on the state to return the $700 million worth of fees collected from utility companies each year for equipment and infrastructure located on municipal land to the municipalities, instead of having it added to the states's general budget  fund (this is something that I've heard Middletown's former mayor Tony Fiore, cry about meekly last year to no avail).

Instead of crying about the 2% cap and it's impact on local budgets, there is a  very simple way for municipalities to get around the "squeeze" of the 2% cap on their budgets. The problem is  however, local governing bodies are to afraid to attempt it.

All that local municipalities need to due is present their budgets to the residents and allow them to vote on whether or not to approve a budget that would increase the local tax rate by more than 2%, just like Brick Township did last year.

It was an ugly, but necessary process that raised the local tax rate by 12%  in order to prevent the town from outsource garbage collection, paving and other municipal services. Mayor Stephen Acropolis (a Republican) had to defend  and sell the large tax increase to the residents, but when he took the time and spent some political capital to explain that the average property taxes bill would only increase $36 dollars, as opposed to nearly $500 a year for private garbage collection, residents were smart enough to see the benefit of going over the 2% cap.

An added benefit to increasing the tax rate above the 2% cap for Brick resident was the fact that the 2011 increase stabilized the tax rate and no increase was needed for 2012.

Putting the municipal budget up for referendum, to allow residents to vote on it's passage is the democratic thing to do. It allows residents to decide for themselves what services are important to fund and which services aren't. Yes, it is risky for local leaders to stick their heads out and defend higher taxes, but when you present the alternatives in a common sense manner and allow residents to make the decisions of what's important or not important to fund, it give politicians cover from the wrath of the voters (or political opponents for that matter).

TRENTON — Mayors throughout New Jersey are telling lawmakers they’re facing a financial squeeze. 

Gov. Chris Christie’s budget proposes keeping aid to towns at the same amount as this year.

But League of Municipalities President Janice Mironov says towns’ costs are rising higher than the 2 percent cap that Christie imposed.

Mironov says costs for the state health insurance plan are going up 9.2 percent and other government-imposed fees are also set to rise.

The East Windsor mayor renewed her plea to the Senate Budget Committee Tuesday that a portion of the $700 million or so utilities pay each year to locate equipment and infrastructure on municipal land be returned to the towns.

As of now, the energy fees go into the state’s general budget fund

Video: 4/30/12 Special Township Committee Meeting - Budget Hearing

Earlier in the week, Monday as a matter of fact, the Middletown Township Committee held a special budget hearing to adopt the 2012 FY budget. I've been waiting to comment on it until the below video was available.

 The proposed $63.5 million will be supported by a tax levy of $47.6 million, which is about a 1.9% increase over last year. In dollars and sense, the increase in the tax levy from last year is $919,079.

Everyone was very happy with themselves and touted how there where not going to be any further job loses after laying off 27 employees over the past two years and about how new collective bargaining agreements with township unions have saved $400k in health care costs since last year, which is all well and good. However, this budget is so lean that I doubt that the town will make it through the end of the year without an emergency appropriation, like the town has had to use in previous years.

By keeping this budget lean and under the 2% mandated cap, I think the Township is gearing up for a larger increase next year. 

Middletown has established a "Cap Bank," whereas any percentage under the 2% cap saved can be rolled over into the next year's budget. If used, it will allow for a larger tax increase next year when combined with the savings from the FY2011 cap.

This budget is far from being an honest budget, but that is to be expected when it is more important to toe tow the line for your favorite governor, than it is to level with the residents of the township.  It's easier to appropriate emergency dollars later to keep the Township afloat than it is educate, then ask residents to approve a budget that may be a few dollars over the cap. If you can tout an average tax increase of only $43 per household per year with a straight face, than you can certainly do it by touting a $45, $47 or $50 average increase.

Granted, no one (including myself) wants to pay more taxes than necessary. But if you give me a choice of no leaf or brush pick-up, no garbage pick-up, the laying off of police officers or other services, I and I'm sure others, would gladly pay a few dollars more to keep those things regardless of whether or not they fit under any artificial cap.  Just be honest.

Now enjoy the video.

Sweeney: Gov. Christie's tools aren’t the sharpest in the shed

NJ Senate President Stephen Sweeney has written the following article that appears online this morning on NJ.com. It's a must read for anyone who thinks that Governor Christie's "Tool Kit" is the be all, end all solution that will control the rise of property taxes in the state.

Of the 33 bills in the Governor's "tool kit", Sweeney rightfully points out that some of them overlapped and were combined to form 24 and later reduced again to by the Governor when he finally realized that proposals about higher education would do nothing to lower property taxes, leaving 20.

Sweeney points out that the Legislature has passed 8 of the 20 bills thus far, the 2% cap on property tax increases and arbitration reform for police and fire contracts being the key pieces passed. While 2 other bills dealing with civil service reform and a cap on sick-leave payouts were passed by the Legislature but vetoed by the Governor. Sweeney then goes on to tell how many of the remaining "tool kit" reforms will do little to bring down property taxes.

So the next time anyone has to hear Republicans in Middletown chastise Democrats in Trenton for not acting on the "tool kit" and saying that these reforms are necessary so that they can control themselves from overspending, I think Sweeney's article should be read into the record and see what comments, if any Tony Fiore, Gerry Scharfenberger or the others have to say:

The governor has blamed everything and everyone for the highest property tax increase in four years. He continues to state that if only his “tool kit” were passed, New Jersey’s property tax problems would magically disappear.

Closer scrutiny of the governor’s kit proves his claims are false and are merely meant to distract from his own culpability in property tax hikes. The governor cut more than $2.4 billion in funding to schools and municipalities last year. That is why your taxes are going up. The tool kit will not make up that shortfall.

There are reforms that must be implemented, such as pension and health benefits reforms, which I have supported since 2006. I am committed to getting those done. But those reforms are not — and never were — part of the governor’s proposed tool kit.

First, let’s have truth in numbers. The governor started by saying there were 33 bills in the tool kit. Actually, there were 24 after items were combined. Now the governor says there are 20, because he finally realized that four proposals dealing with issues at colleges and universities have absolutely nothing to do with property taxes.

The Legislature did pass eight tool-kit items. First was the creation of the 2 percent cap on annual property tax increases, which the Legislature lowered from the 2.5 percent cap the governor initially proposed. Second was arbitration reform for police and fire contracts, which was heralded across the state by local officials as key to reining in property taxes.

Two others — comprehensive civil service reform and a cap on sick-leave payouts for public employees upon retirement — were passed and sent to the governor, who vetoed them. We have no reform in these two areas because the governor chose to kill reform.

Civil service needs to be reformed and modernized, but abolishing it will not lower property taxes. Only one-third of New Jersey towns are bound by civil service rules, and those towns actually have lower property taxes per capita than towns without civil service. Civil service was established to protect against political corruption and nepotism. It is puzzling that the governor wants to completely eliminate this protection.

Sick-leave payouts should be capped, but the governor vetoed a bill to do that because he wants to take away benefits workers have already earned. That may be a nice talking point, but it won’t stand up in court. And it would create a flood of new retirements as workers cash out before the law would take effect. If the governor got his way, this tool would actually cost taxpayers even more.

Two other parts of the tool kit are already in comprehensive shared services legislation I am sponsoring with Assemblywoman Pamela Lampitt and Assemblyman Paul Moriarty, which goes far beyond what the governor envisioned, and which will move through the Legislature later this spring.

These are the only parts of the tool kit that will save you money on your property tax bill. We did them. The handful of remaining bills that the governor clings to won’t save you anything.
One would cap spending on state government operations — which already exists under law, and even if it did not, would have no impact on local property taxes. Another would allow local governments to use furloughs to save money — which they already can do as long as furloughs are negotiated.

Another bill to centralize all power over civil service decisions in the Civil Service Commissioner (read: czar) would only consolidate the governor’s power and do nothing to lower property taxes.

One bill would move school and fire commission elections to November — a move whose total property tax savings, according to the nonpartisan Office of Legislative Service, would be “minimal.”

Others would change the way some employee discipline measures are handled (OLS estimated savings: $140,000), require the mailing of only one sample ballot per household (OLS estimated savings: $1.4 million), and allow municipalities to offset property tax delinquencies against state income tax refunds (OLS estimated net savings: zero).

The governor’s rhetoric does not stand up to simple math. The tool-kit bills that haven’t yet been passed offer no real help from New Jersey’s crushing $25 billion property tax burden.

Let The Spin Begin: Press Release In Advance Of Budget Introduction Issued By Middletown Committee

In advance of tonights budget introduction by the Middletown Township Committee, the follwoing press release was issued a short while ago, all I can say is let the spinning begin. It seems that only in Middletown can the municipal budget be cut by nearly $4 million but the amount need to be raise through taxation increases by $1.58million. I guess I should be glad though, could you imagine what the tax increase could have been if the Township Committee didn't adhere to the Governor's mandate to stay under the 2% cap?...

MIDDLETOWN – The Middletown Township Committee anticipates introducing its 2011 municipal budget that is $3.87 million (5.9%) less than the Township’s 2010 budget.

“Middletown’s proposed municipal budget is very austere and in full conformance with the new 2% cap levy law despite the Legislature’s continued failure to enact the Governor’s tool kit reforms that would empower the Township to make further cuts,” said Middletown Mayor Tony Fiore.

“We are hopeful to continue to rein in spending through ongoing negotiations with the Township’s collective bargaining units with a focus on decreasing the Township’s health care costs." “Cuts in the proposed budget include the layoffs of 26 employees, including 10 police officers, and the third consecutive year of salary freezes for the Township’s managerial employees,” continued Fiore.

“Middletown will continue to focus on core governmental functions while seeking other ways to continue to reduce costs though interlocal agreements and the Township’s solar initiative that is currently under way.”

Proposed Budget Data and Facts

• 
  
  The proposed 2011 municipal budget is $61,114,285 compared to the adopted 2010 budget that was $64,979,576.


• 
  
  The proposed budget represents an actual decrease in spending of $3,865,291 (5.9%) from the 2010 budget.


• 
  
  The largest cost drivers offsetting the Township’s $3.87 million in budget cuts are tax appeal refunds, State-mandated pension contribution increases of 22%, and costs associated with deferred charges due to numerous retirements last year.


• 
  
  The proposed 2011 budget anticipates an increase in the total tax levy of $1,357,855 which complies with the new 2% cap levy law and will cost the average Middletown homeowner approximately $5 per month.


• 
  
  The municipal budget makes up only approximately 22% of the average property tax bill, the remaining portion relates to the school and county tax levies.

Middletown Board Of Education Approves $144 Million Funding Plan

At last night's Middletown Board of Education meeting, the school board approved a $144 million dollar spending plan for fY 2011-2012, that will be presented to voters on April 27th.

According to the Asbury Park Press's article, the spending plan seems reasonable and I see no reason for voters to reject it. The budget will increase by 1.38% which is well below Governor Christie's 2% cap on budget spending.

This budget will provide for the hiring of additional teachers this year, which will help to alleviate classroom overcrowding in a few of the districts school.

I was not at last night's meeting but from what I was told, a few who were in attendance questioned the leanness of the budget and whether or not the school board left enough wiggle room within it in case it was rejected by voters, as it was last year.

I was told that the response to this questions was that the budget was purposely put together lean in an attempt to show residents and the Township Committee that this budget, unlike previous one, was honest and reflective of the times. And if the budget was rejected, it would be devastating to the district.

The main thing that I am curious about, is how contract negotiations with the teacher's union is going. unlike in years past, these talks have been relatively quite but still unresolved over issues concerning healthcare contributions. So I wonder how the Board of Education can produce and honest, lean budget without a signed contract with the teachers?

Ringing Controversy; Concerned Citizens of Middletown Robocalls Strike A Nerve

It seems that the latest round of Robocalls that went out yesterday afternoon by the group calling themselves "Concerned Residents of Middletown" have struck a nerve with some sitting on the Township Committee who say that the calls don't ring true.

In a column published this morning over at Redbankgreen.com, Middletown Mayor Tony Fiore and his Deputy Mayor Pam Brightbill question the legitimacy of the group Concerned Residents of Middletown and it's message.

“It appears to be just another desperate attempt by the Middletown Democrats to spread misinformation to the taxpayers,” Fiore is quoted as saying in reference to who he thinks is behind the calls. He adds “the real truth will come out. The information they’re pointing out is just not accurate,” when referencing that the Townships budget will be introduced next week.

As if that has any real barring on the truthfulness of the messages contained in the robocalls. Remember last year how Mayor Scharfenberger and those sitting on the Committee, other than Democrat Sean Byrnes, insisted that the Township tax increase was only 2.8% when the proposed budget for 2010 was introduced in last June, when in actuality the municipal tax rate increased by 13.9%.

I think the people lacking credibility on budget issues are those that sit on the Township Committee. The real truth behind the budget numbers and any proposed tax increase which will be presented next Monday night, wont really be known until revised tax bills are sent out to residents, after the budget is adopted later in the year, just as it was last year. When residents looked at their tax statements expecting to see only an increase of 2.8% in the municipal rate, they were stunned by the difference.

Before passing judgment on these robocalls, it is important to see if the message included in them pan out as describe. Only then can we tell who was spreading false information to residents.

N.J. municipalities scramble to notify voters on property tax referendum; I wonder if Middletown has plans to hedge it's bet

According to the Star-Ledger, today is the last day that municipalities around the State have to notifiy their votes of the potential to hold a property tax referendum that would enable a municipality to exceed Governor Christie's 2% cap on budgets.

I posted Saturday about how Middletown's Administrator Tony Mercantante and others have stated that they had no intention to exceed the 2% cap and that there would be no referendum needed, especially since Mercantante had no idea how a referendum would work. He stated at the February 16th Library Board meeting that the State Legislature(code word for Democrats) in its bill, provided no guidance or allocated any type of funds to municipalities for the purpose of such an event. So Middletown wasn't going to even consider such a possibility.

Instead of planning for the possiblility of a referendum, Middletown's Mayor Tony Fiore, and others that control the town planned to follow Governor Christie's lead and stay with in a 2% budget increase.

That sounds great in theory but wouldn't be a good idea to hedge your bets and announce a referendum just in case they can't stay with in the cap?

Is the Township Committee really prepared to lay off 10 or more police officers and the whole department of Parks & Recreation if they can not get union consessions during contract talks or if they Library Board refuses to hand over any more reserved funds then they are legally responsible to do, which at this point is in the neighborhood of $250,000?

I guess these questions will be answered at tonight's Township workshop meeting.


TRENTON — New Jersey enters a new era today as voters get to find out if they may be asked next month to raise their property taxes beyond the Christie administration’s new 2 percent limit.

Under the law signed by Gov. Chris Christie last summer, residents will decide if their town or school budget can exceed the 2 percent cap through a referendum on April 27, the same day as school board elections.

Towns and schools were scrambling last week to meet today’s deadline to publish a newspaper ad notifying voters a referendum may be held. As of Sunday, five towns — Plumsted, Mount Holly, Riverdale, North Arlington and Chesilhurst — had placed ads and at least five more towns and two schools planned to, according to groups representing towns and schools....Read more >>> Here

Can Someone From Middletown Call Someone From Brick To find Out How A Special Budget Referendum Is Supposed To Work?

During the February 16th Library Board meeting, someone asked about the possibility of Middletown exceeding the new State mandated 2% cap on budgets and the possibility of placing a budget referendum question on the ballot that would allow voters to authorize exceeding the cap if they thought it was necessary to retain services.

The question was answered by Township Administrator Tony Mercantante and the goon that acts as Township Attorney Brian Neslon. They answered that Middletown had no intention whatsoever in exceed the 2% cap and even if they did there was no mechanism in place that they knew of, that would guide them towards how a special budget referendum would be putting place or carried out.

Mercantante stated something to the fact that, like most of what the law makers in Trenton do, they passed a provision with no guidance on how to carry it out or how to finance it. Mercantante and Nelson were both adamant that Middletown was not going to spend one dime to carry out a special election just so that voters can approve or disapprove a proposed budget, without funding from the State.

Fast forward now to Wednesday when it was reported in the Asbury Park Press that Township of Brick is planning to hold a special budget referendum to exceed the State mandated 2% cap. At stake are the jobs 172 employees that would include 29 police officers and 117 members o the public works department.

Now the article didn't mention when or how the special budget question was going to happen, but it is a good bet that the question will be posted on the ballot of the next set of elections coming up, which would be the school board election in April.

Contrary to popular beliefs in Middletown, it doesn't take a rocket scientist to figure this stuff out. I believe this is why Governor Christie and those in the State Legislature have told municipal leaders that their budgets need to be submitted to the State by mid March, so if there is a need for a special referendum it could be without the need for a special election or any extra costs associated with it.

It would just be nice to get a straight answer out of people that represent Middletown for a change, without it being turned into a big political name calling game.

So can someone from Mercantante's office call down to Brick and ask someone in the Mayor's office down there, the details on how a special election would work to exceed the budget cap if ever needed?

Looking At Both Sides

by guest blogger Sean F. Byrnes, former Middletown Township Committeeman

Last week we saw the Township of Middletown enveloped in a dispute over the Township’s effort to convince the Board of Trustees for the Library to turn over a significant share of its surplus to the Township Committee for budget relief purposes. Unfortunately, the manner in which the township chose to solicit these funds lacked tact. Although the township had previously made less threatening overtures to the Library in an effort to win the Board of Trustees’ support for a funds transfer, when that effort failed, the Township pursued an aggressive campaign to convince the public that a transfer would be in their best interest. Spearheaded by new Committeeman Kevin Settembrino, this effort, whether intended or not, seemed rooted in tactics of intimidation and threats to de-municipalize the library and combine it with the County Library system. This effort also suggested that a failure of the Board of Trustees to abide by the wishes of the Township Committee would result in the loss of ten police officers, the layoff of a significant number of Township employees and, if you heard the comments at the Library Board of Trustees’ meeting, an effort by Township Committee members to replace existing Board of Trustees members.

Based on the comments from Board of Trustees’ members at their meeting on Tuesday, it would appear that the resolve of the Board of Trustees has not wilted in the face of these threats. Led by Randy Gabrielan, the Chairman of the Board, the Library challenged the assumptions, numbers and legal authority for the Township’s demand for a funds transfer. Looking ahead, as a Township resident, I would hope that both sides could retreat from the current level of heated rhetoric and restart their discussions.

I think it would be in the interest of all taxpayers for the Township Committee and Library to continue their discussions. It might make more sense to have the Township Administrator meet with the Director of the Library to discuss how the Library might be able to assist the township in this time of budget crisis. From the Library’s perspective, the Board has worked hard to build a reserve that could be used for future capital projects, and there is an understandable reluctance to use these funds to satisfy operating expenses for the Township. From the Township’s perspective, the Library has a protected stream of revenue that is not subject to the same stresses and demands that the Township must face when health care costs increase, pensions become more expensive and the cost of doing business generally continues to go up. There may be opportunities for these two parties to cooperate in other ways that would provide relief to the Township without exhausting the reserves of the library.

There is no question that the Township finds itself in a perfect storm of budgetary constraints. To be fair, some of these strains are beyond its control. But the Township moved at a glacial pace over the last several years as this financial crisis approached. A quicker response to the approaching financial storm would have made the Library ask a smaller one. Accordingly, before the Library turns over any of its reserves to the Township, it would be nice to see an acknowledgment that a swifter response from the township in 2009 and 2010 would have avoided the seriousness of the budget crisis that the Township currently faces. The Township did lay off approximately 16 employees last year, but did so only mid-year. Other municipalities took action much sooner and in more dramatic fashion. The former Mayor’s claims of 40 layoffs include retirements.

Other cost-saving measures were proposed over the last several years, but were rejected as too extreme. Unfortunately, as a result of the Township’s failure to act, the Township Committee must now contemplate cuts that go far beyond those that were previously considered “extreme.” Until the Township forms a subcommittee whose function is to focus on budget recommendations, track existing and anticipated debt, look for opportunities for consolidation and sharing of services and generally manage the Township’s finances on a more regular basis, the Township will always be reacting to rather than planning for increased demands for Township resources.

Once again, in fairness, the unfortunate timing of the Township’s reevaluation in 2009, just prior to a steep decrease in property values, set the Township up for a tax appeal nightmare in 2010 and 2011. (Of course, the township had mistakenly put off its reevaluation for approximately 14 years – had the township completed the reval when it should have, the steep drop in real estate prices would not have resulted in such a large number of tax appeals.) But regardless of the failure to conduct a timely revaluation, the Township has a legitimate reason to gripe, because when a resident or commercial property owner prevails on their tax appeal, the township must return to the taxpayer not only the municipal share of the taxes received from the taxpayer, but must also reimburse the taxpayer for the funds received by the School District during the year for which the tax appeal was filed. This reality is difficulty for some to believe, but true. And, in light of the fact that approximately two-thirds of the tax dollars go to school district activities, the Township ends up paying back the taxpayer for School District funds that the Township never received in its budget.

Consequently, the steady decrease in real estate value over the last couple of years has produced a field day for those filing tax appeals. The Township is now struggling to repay multi-year tax appeals that are probably worth nearly $4 million. Unfortunately, the Legislature has failed to assist municipalities facing this dilemma. Under the circumstances, given the unique circumstances facing municipalities, including picking up the tab for the Legislature’s bungling of pension contributions for public workers, the Legislature should provide assistance to townships by creating opportunities for public entities to finance the tax appeals or extend their repayment terms. In several years, the Township will be through this unique period where tax appeal refunds are substantial and hopefully return to a more predictable budget cycle. The Township Committee took the first step in this direction in 2010 when it decided to conduct a reassessment. Even thought the reassessment cost $400,000 the savings achieved in 2011 from reduced tax appeal filings will be far greater.

The realities of the tax appeals as set forth above increase the pressure for some agreement with the Library. At the same time, the Library will see its share of funding decrease by more than 10 percent next year, due to the fact that its revenue stream is dependent solely upon property values. With a 1.3 billion drop in the total assessed real estate in the Township of Middletown, the Library’s stream of revenue will be reduced considerably. Given this dynamic, it may make sense for the Township and Library to discuss mutual relief. In other words, the Township needs money now most desperately. The Library in the out years may need assistance as its funding stream declines. Perhaps assistance from the Library during the current year could be received in exchange for promises by the Township to return the favor several years down the road.

It might also make sense for the Library to consider some sort of partnership with the Arts Center. While the Arts Center has its own Board of Directors, this arrangement, as far as I know, is not routed in any legislative scheme. Indeed, the Township has effectively turned over the operation of the Arts Center to a non-profit corporation and the Board supervises these activities. Resident Jim Grenafege was the first person to suggest that the Library Board of Trustees might consider assimilating some of the Arts Center’s operations into its activities. A casual review of the websites for these two entities suggests that there is some degree of overlap between the artistic and cultural offerings from these two bodies. Given that they both have buildings that are relatively new and both are focused on improving the education of the citizens of this Township when it comes to arts, literature and music, there may be some opportunity for the Library to assist in the operation of the Arts Center, including some of its expenses. It is exciting to contemplate what the far larger Library work force might be able to provide to the Arts Center when it comes to running the day to day events and offerings at the Arts Center.

At the end of the day, the current legislation when it comes to Library transfer to municipalities, amended in October of 2010, will likely allow some transfer to take place. From the Township’s perspective, the amount of money to be transferred under the current legislative scheme will fall short of what the Township needs to avoid drastic reductions in personnel and services. However, somewhere within the circumstances discussed above, creative minds on both sides should be able to work out an arrangement that provides some additional relief for the Township, even if it may not be a direct transfer of funds of the magnitude the Township seeks. My hope would be that the time and energy on both sides be spent working toward that goal, rather than on blaming the other.

APP: Middletown requests library hand over surplus of over $542G

Real quickly, here is the take of Asbury Park Press Reporter Kevin Penton, who was at last night's Middletown Library Board of Trustees meeting. As I said in my post last night after the meeting, it was a long meeting and frustrating at times to sit through listening to the double-talk coming from members of the Township Committee. Even though Penton kept his take on last nights meeting brief and didn't quite capture the total essence of what transpired, I think he did a nice job with this, and I'll have more to say later!

MIDDLETOWN — It is not a demand, but a simple request — the library should give the township at least $542,767, municipal officials said Wednesday.

But should the township public library's board of trustees not agree to the request, there could be consequences.

The Township Committee has the ability to request, by adopting a resolution, that the municipality's library join the Monmouth County Library System, Mayor Anthony Fiore said.

"Such a move would be an absolute last resort," said Fiore in a letter to residents on Wednesday. "Without the transfer of some of the library surplus, it may become a fiscal necessity. Not an option, a necessity."

Shifting the library to the county's stewardship would reduce the township's costs by at least $1 million, Fiore said Wednesday outside of the board of trustees' meeting, which about 100 residents attended.

After more than three hours of debate, the board voted unanimously to ask the attorneys and administrators of the township and the library to meet before the end of the month to agree on a figure. The board would then decide whether to accept it.

Most of the residents who commented during the meeting said the library should not hand the money to the township.

Township officials have said they need the money to avoid laying off more than the 26 positions that are already part of a plan it submitted to the state Civil Service Commission on Friday. Included in the layoff plan are 10 township police department and 13 parks and recreation department positions.

Resident Melanie Elminger compared the situation to the story of the grasshopper and the ant. The ants worked hard all summer to save their food while the grasshopper relaxed and sang. Come winter, the grasshopper wanted the ants' food, even though it had done nothing to save it, she said.

"Mr. Settembrino, don't be a Grinch and steal our library," Elminger said, referring to Kevin Settembrino, a township committeeman who sits on the board of trustees and initiated the request last month.

Fred Deickmann, president of the Middletown Superior Officers Association, encouraged the board to contribute the money.

"Everyone needs to work together on this," said Deickmann, who pledged to work with his union members to come up with additional concessions. "I implore the board to assist."

"We're not here to extort your money," Fiore told the board. "I'm here to plead for cooperation."

Emotions Run High At Library Board Meeting

I just walked throughout the door after attending tonight's Middletown Library Board of Trustees meeting, at this point in time 10:47pm, the meeting is still ongoing. I couldn't stand the BS any longer and I had to leave.

The final nail which was hammered into my head, that made me leave the proceedings was the exchange that was taking place between Board of Trustee members and Mayor Tony Fiore. In a moment of frustration at being questioned about the legality of whether or not theTownship could request funds from the Library and exactly how much money was available for the taking, Fiore said to library Director Susan O'Neal, "With all due respect, you don't know what we know!"

That statement blew my mind, I had to leave, I could take the BS any longer.

One fact that everyone should know about tonight's meeting, regardless of whether or not the Library board gives funds to the Township it WILL NOT effect the need to layoff of members of the Middletown Police Department or the other 16 people that have been targeted to loose their jobs. As a matter of fact, if funds do not come from the Library to help plug Middletown's budget defect MORE people will need to be laid off, not just the previously announced 26 individual.

And even though the Township is not looking to turn over the Middletown library system over to the County, the Township Committee has already looked into the possibility of it and would be willing to do it if nessassary, as per Mayor Tony Fiore.

Reporters from the APP, Independent and RedbankGreen.com were their tonight covering the event. Kevin Penton of the APP said that the will be posting a story before the end of the night.

I'll post more about this later also, but for know I need to go to bed, my head hurts!