Financing agreement saved taxpayers money

Earlier this year I was selected to be a member of the Old Bridge Township Council budget negotiating committee to help resolve the failed Board of Education budget. The committee, which also included council members Patrick Gillespie and Robert Volkert, met on numerous occasions in an attempt to identify ways to provide needed tax relief for the taxpayers of Old Bridge.

The committee scrutinized the budget and requested explanations and justification for countless items that had been included in the failed budget. Ultimately, the goal of the committee was to cut the budget, and, in turn, reduce the impact of the board budget on the property owners of Old Bridge.

One budget item, in particular, that we discussed was the allocation of principal and interest to pay for needed improvements and upgrades to the school facilities. The projects that the board recommended were all eligible to be paid for by borrowing the necessary money. It was anticipated that the resulting principal and interest would be paid back over a five-year period, and the failed budget included the first year's payment.

When the committee discussed the merits of the projects, the committee recognized that the township could help the board get the projects under way, save money and at the same time reduce the budget. The committee agreed to recommend that the township use its favorable bond rating and timing of the note sales to borrow the money for the needed repairs and use the resulting savings to reduce the failed budget. Of course, the board would reimburse the township for every dollar that the financing arrangement cost.

I have highlighted the budget committee's actions concerning the projects because there has been a great deal of misinformation circulating and politically motivated finger-pointing since the council voted to finance the projects. The end result of the budget negotiating committee's hard work and the council's concurrence was to reduce the board budget by $1.6 million and provide a measure of tax relief. Not one dollar was added the to the board budget during the budget process or subsequent council action.

I am proud that the council majority agreed to assist the board with the financing of its projects, with no impact on the municipal budget. I'm also glad that the board can now quickly move forward and correct flooding problems that occur in two schools, replace old bleachers, upgrade technology equipment, upgrade security, replace boilers, renovate gyms, etc., at schools throughout the school district.

Richard Greene

member

Old Bridge Township Council