Judgement Shore Regional board of Education can go ahead with its referendum calling for a $51 million bond issue for repairs and renovations to the school next week.
But even if it is approved, the school district cannot borrow the money until some of the problems with Sea Bright’s regionalization are decided.
That was decision of Superior Court Judge Owen McCarthy yesterday after hearing arguments from both Sea Bright and Shore Regional, as well as Jason Sena and the state Attorney General, both representing Monmouth County Clerk Christine Hanlon.
Vito Gagliardi and Keri Wright of the Porzio law firm representing the borough of Sea Bright, had sought to cancel the referendum announced last month by the Shore Regional School District.
Gagliardi cited two laws he felt would halt the vote, citing the law that says no district could incur more debt while a decision is pending on whether Sea Bright can be excused from that regional district and join Henry Hudson Regional as a third town with Highlands and Atlantic Highlands.
Gagliardi also questioned whether Shore Regional was properly following election laws inasmuch as it could not keep the public informed on how a $51 million issue would impact taxes for voters without knowing whether three or four municipalities would be included in the board of education.
Jason Sena, former Atlantic Highlands borough attorney, represented County Clerk Hanlon, who was opposed to halting the vote on the basis of the lack of time between now and the already scheduled election day as well as the fact preliminary steps have already been taken and completed for the vote to take place under state election laws. To halt the process now, Sena argued, would cause irreparable damage.
On a zoom hearing Monday, the judge heard arguments from both sides, with Geoffrey Stark representing Shore Regional and Mark Gulbranson the acting Attorney General and Sena representing the Monmouth County election office and Gagliardi and Kerri Wright representing Sea Bright and its mayor, Mayor Brian Kelly, representing private citizens whose taxes would be directly impacted should Sea Bright stay in the Shore Regional district.
Gagliardi brought to the judge’s attention that whether Sea Bright will actually be part of the Shore Regional district is still a matter to be determined. That conclusion is awaiting the decision of Appellate Courts that have twice upheld Sea Bright’s request to leave the district and join Henry Hudson Regional. Shore Regional continues to challenge those decisions and it is that matter that is yet to be resolved.
In this week’s actions, brought by Gagliardi in an attempt to stop the election until Sea Bright’s situation can be decided, he argued that a funding formula should the $51 million be approved, has not yet been established, nor could it be while the district awaits an Appellate decision and the ultimate decision of the Commissioner of education.
He argued the Department of Education would never have allowed the referendum without sufficient information as to its impact on taxation, and traced the history of the Sea Bright litigation on the regionalization question for several years, long preceding any notice of a bonding referendum.
Further, he argued, the regionalization question has been ongoing for at least four years and has been upheld by the court only to have Shore Regional continue the litigation with challenges to the court decision.
Judge McCarthy closed the arguments Monday and delayed his decision until Tuesday morning to review all the testimony and background. He then indicated he was basing his decision on allowing the vote to continue on the county election arguments the preparation for the election has gone too far to be halted without causing damage and possible illegalities. He cited the fact sample and mail-in ballots have already been mailed to voters, as well as other routine procedures which must be followed for every election.
At the same time Judge McCarthy noted there will be likely be more litigation before matters are settled, so issuing a stay on the issuance of any bonds , should the matter be approved March 11, would be necessary. At Monday’s hearing, he described Sea Bright’s dilemma of whether it can leave the Shore Regional district as the “elephant in the room.”
“On behalf of the taxpayers of Sea Bright, I appreciate Judge McCarthy taking the difficult step of entering an injunction here and preventing Shore Regional from issuing any bonds, assuming the issue is passed,” Gagliardi said after the judge’s decision.
