Middletown mayor: Budget concessions will not obliterate the library

It's pre-budget season. And this year, in light of Gov. Chris Christie's two percent spending cap, layoff rumors are swirling like an out-of-control spin-art project. Middletown is no exception.

Immersed in the pre-budget planning phase, and of the mind that transparency quells dangerous, uninformed speculation, Mayor Anthony Fiore recently (pre-Patch) released information about what residents could expect to have to deal with once this year's budget is presented.

The prospects are grim for the township not being forced by state hand to lay off 26 employees, including 10 police officers (plus looming inter-departmental demotions), 13 township Department of Parks and Recreation staff members and three others (from the Building Department, Department of Finance and Municipal Court). The plan was filed on Friday — with the recommendations coming from the office of Administrator Anthony Mercantate — with the state Civil Service Commission, per standard state procedure.

Because, in his release, Mayor Fiore described a library-involved tactic that may help to save more police jobs and balance spending, misunderstanding took hold. The administration's plan is to borrow money (an originally proposed $898,000 ) from the healthier library surplus of $1.2 million to offset some township budget deficiencies and maintain the quality of municipal services.

A few years ago, when the library's main branch underwent a major renovation, the township bonded for money to contribute to the renovation so that the library would be eligible for a state grant. The $898,000 represents the library's debt service to the township for that money.

The mayor said he is asking for concessions and some sacrifice from the library board to cure the debt service and stave off more police layoffs — what officials deem a priority municpal service. Another major township budget shorftfall problem, the mayor said, is a $4.9 million loss from tax appeals resulting from the township's recent revaluation.

Since the library is not a part of the county library system, it is run under the umbrella of the township and presided over by a library board, which includes Township Committee liaison Kevin Settembrino. It's operating budget is unique in that library employees are township employees and the "state law specifies how much must be allocated to the library each year, whether it is needed to operate the library or not," the mayor specified. 

According to officials, the library board is not pleased at the potential prospects for the library, but has agreed to meet and negotiate the township proposal.

He issued a letter to the public to clear up misconceptions concerning the hows and whys of what the township is asking from its library during this fiscal crunch. Patch will be following up soon with its own story on the budget process in Middletown and who does what, why and how; and, the particular challenges faced by the township this year, including the police and library board's perspectives. 

In the meantime, Mayor Fiore's letter:

Dear Township Residents:

I felt it was necessary for me to respond to the recent flurry of comments and emails regarding the Middletown Township Library. It is unfortunate that some have chosen to engage in the spread of completely false information with regard to the Township Committee’s request of the Middletown Library Board. So let me set the record straight.

First let me make it very clear that neither I nor any member of the Township Committee has ever suggested or proposed closing any library facility in the Township. We would simply not do such a thing.

The situation the Township finds itself in is not unlike that being faced by towns throughout New Jersey. With revenues sharply down due to the economic downturn we remain in and with state-mandated costs ever on the rise, we are now faced with an extraordinary fiscal challenge. This includes the potential for the layoff of a number of employees and even, possibly, police. Be assured that we do all we can to avoid layoffs and we take the matter very seriously.

The library budget is different from the township budget in that state law specifies how much must be allocated to the library each year, whether it is needed to operate the library or not. The result of this is that the library now has a surplus of $1.2 million. While some portion of this surplus is needed for ongoing support of library programs and initiatives, the vast majority is not needed for continued operations.

I personally met about two weeks ago with the Library Director and the Board Chairman and asked that they bring back to the library board a request to transfer approximately $700,000.00 to $800,000.00 of their surplus to the ownership’s budget. This would be used to offset layoffs and to help fund the continuation of many vital township services and help to offset the impact of over $4 million in tax appeals.

The Township Committee is fully aware that the library board cannot be forced to do this. However we are asking that they work with us in a unified effort to help all of the residents and taxpayers of the Township. I would note that the township Sewerage Authority dedicated a portion of its surplus to the township last year and we anticipate them doing the same again this year.

Many people have expressed concern that the Township Committee is seeking to transfer operation of the library to the Monmouth County Library System. Let me be clear that the Township Committee has taken no action to do this. Such a move would be an absolute last resort, but without the transfer of some of the library surplus it may become a fiscal necessity. Not an option, a necessity.

Should this action have to occur, the library would not close, it would simply move under the umbrella of the county and the staff would become county employees rather than township employees. Again, we do not want to make this move.

We would like to see our library continue as the great Township facility it is. Our hope is that we can work with the Library Board as a team with the best interests of the township as the goal.

Sincerely,
Anthony P. Fiore, mayor