Tempers flare in Mid’twn over library funding
Twp. says surplus funds needed to offset $4M in tax appeal refunds
BY ANDREW DAVISON
Staff Writer
Township officials and residents wait their turn at the microphone during a contentious meeting at the Middletown Township Public Library on the township’s request for funds from the library’s surplus. Below: Mayor Anthony Fiore speaks at the Feb. 16 meeting.
ANDREW DAVISON A fter a lengthy, heated and at times vitriolic debate on all sides, the Middletown Township Public Library board of trustees and the township governing body agreed to negotiate a sum for possible transfer from the library’s surplus funds to the township .
After several revisions made at the library board meeting on Feb. 16, the board unanimously approved a motion proposed by library board and Township Committee member Kevin Settembrino that provides for a future meeting between the stakeholders.
Administrators and attorneys for both sides would meet and negotiate a mutually agreed-upon amount to be voted on at the next library board meeting on March 16, or sooner, if a special meeting is called.
Under state law, the municipality allots one-third of a mil (onethousandth of its assessed property valuation) to funding for the library.
Township and library officials also could not agree on how much surplus the library has available.
Reading from a 2009 audit, Settembrino said that he estimates that the library has $1.2 million in surplus; however, library officials said at the meeting that there is less than $400,000 in available surplus.
Library board Chairman Randall Gabrielan emphasized that an agreed-upon number did not guarantee a contribution, but would require additional action from the board.
However, achieving even this step was no easy task. Public comment filled most of the three-and-ahalf hour meeting as residents queued up to the microphone to voice concerns over the future of the library and the implications of transferring the surplus funds.
Residents and library board members alike said they are concerned that not contributing funds from surplus could draw consequences from the town, such as dissolution or absorption by the county system, but contributing may set a precedent for future payments or jeopardize the library’s solvency.
“One of the things that I, as a trustee, must consider when we talk about reserves is, ‘What’s the purpose of a reserve?’ ” said library board Vice President Gregory Milne.
“One of the purposes is to plan for the future.” Township Administrator Anthony Mercantante explained that the township’s request for assistance stems from an abnormal budget year.
“The Township Committee is faced with a budgetary situation that is unusual this year in that this is the first year there has been a 2 percent cap,” he said.
Mercantante added that a very high number of successful tax appeals in the last two years have strained the budget.
When property owners win tax appeals, Mercantante said, the township has to pay back its portion of the taxes collected, along with the school district and county’s portion. “That adds up to a substantial amount of money, and in the past year we’re over $4 million in tax appeal [judgments],” he said.
Coupled with the state-mandated 2 percent limit on annual tax revenue increases, it creates an unforeseen problem, Mercantante said.
“The township is only legally allowed to increase tax revenue by $900,000 but we have $4 millionplus in [successful] tax appeals.
“We’re basically looking for funds to help supplement our budget that we’ve not had to do before,” he said.
“We’re just asking for help, for a piece of the big puzzle.”
Mayor Anthony Fiore also spoke at the meeting, explaining his request to the board.
“I would not be here today … if we thought that our request would impact the day-to-day operations of the library,” he said.
“We would never close this library, but we are looking for cooperation.”
Fiore said he felt that he had an obligation to the residents of Middletown to explore every financial option, as unpopular or popular as it may be.
“We know we can’t legally take it from you, and that’s not what we’re here to do,” Fiore said, “We’re not here to extort your money. “However, we’re telling you that if we don’t get the help, it will impact more potential jobs in this township, and the only place we can go, and the place we have gone, is public safety.”
The township recently submitted a layoff plan to the state that would potentially eliminate 26 positions, 13 in parks and recreation, 10 in the police department and three in other departments. That plan anticipates $898,000 in assistance from the library surplus.
Fiore said that there could be more layoffs if the library does not contribute.
Milne said that his primary concern as a trustee is to do what is best for the library.
“I have to exercise a judgment about what’s right for the library. I’m not here to pass on police contracts. I’m not here to run DPW. We’re here to run the library,” he said.
“This independent library has been required since 1884 to have an independent library board. Why? To keep it free from the political rancor that we are seeing here today.”
Ultimately, the library board found the option of discussions and a possible compromise acceptable as indicated by the unanimous vote and Milne’s comments.
“I personally am steadfast that we keep the reserves that we are required to keep, but I think it’s always something that is good to discuss.