Twp., library talks continue on transfer of surplus funds

MIDDLETOWN — With negotiations underway regarding the possible transfer of a portion of the Middletown Public Library’s surplus to the township, both sides report amicable progress.

“I could fairly categorize it as with goodwill on both sides,” Library Director Susan O’Neal said in an interview.

“We’re working toward trying to meet the timetable of the March regular meeting of the Township Committee [March 21].”

Similarly, MayorAnthony Fiore, while he did not attend the meeting, said that he was told that the proceedings were in good faith.

Township Administrator Anthony Mercantante, who attended the meeting, did not return calls seeking comment.

Township Attorney Brian Nelson, who also attended the meeting, stressed the impending budget deadline.

“I’m hopeful that we can come to an arrangement with the library that is acceptable to both parties,” he said.

“I believe the meeting we had was productive, but we have a narrow time frame in which the township needs to adopt the budget.”

The negotiations between the township and library were the result of a motion passed at the contentious Feb. 16 meeting of the library board of trustees.

Municipal officials asked the library to transfer some of its taxpayer-funded surplus to the township to help offset $4 million in tax appeal judgments, help it comply with the new state-imposed 2 percent cap on property tax increases and help prevent additional layoffs.

Under state law, the municipality allots one-third of a mil (one-thousandth of its assessed property valuation) to funding for the library.

According to legislation passed in October, A2911, municipal free libraries must transfer to the township any unreserved general fund balance that exceeds 20 percent of operating expenses for the previous year.

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 has said that there could be more layoffs if the library does not contribute.

At the Feb. 16 meeting, 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 of the library by the county system, but contributing may set a precedent for future payments or jeopardize the library’s solvency.

The result of the current negotiations would still require action from the library board either at its March 16 meeting or a tobe announced special meeting.

“We have not yet decided if there would be a special meeting to vote on whatever agreement is forged,” O’Neal said, adding that the decision would be made this week.

According to O’Neal, the library has $262,453 in unrestricted surplus that would be available for transfer.

It arrived at this number, she said, through the state’s official “proposed transfer form.”

“It’s a form that is provided as part of the law and the procedures in terms of transferring funds,” she said.

“There are a number of steps that must be taken in this whole process, but this form along with various reports has to be approved by the state librarian.”

O’Neal said the library has been working closely with the state librarian throughout this process.

At previous meetings, township officials have stated that according to their calculations, the library has $1.2 million in surplus.

While negotiations are progressing, O’Neal said that this discrepancy over the surplus amount remains an issue.

“We still have a disagreement about the use of the words ‘surplus’ and ‘reserves,’ and that has not been resolved,” she said.

O’Neal said that the negotiations involve issues other than the amount.

“It’s not just a number; in a negotiation, there is an ask and a response and other things are brought up,” she said.