ATL. HIGHLANDS – More delay, more confusion and more expense to the taxpayer was announced at Thursday’s meeting of the Mayor and Council when Council unanimously passed a resolution authorizing a financial advisor for independent financial advice before the question on regionalization for the school districts can make it to the ballot.
In response to questions from local resident Mark Fisher, borough administrator Robert Ferragina explained each of the municipalities involved must appoint a person or firm to, according to their resolution, to “prepare a financial structure and impact analysis on the proposed consolidation, examining the consolidation of debt, operating expenses and the impact of the regionalization on respective tax levies and tax rates that will be examined. The contractor will also provide guidance on municipal, school budget and possibly country tax impacts, along with student impacts,” though it is not clear what impacts tax levies and financial structures may be placed specifically on students.
The contractor will also prepare a statutory tax assessment distribution and fiscal plan “and other financial work as necessary.”
The borough retained Beneke Economics, and its members, Roert Benecke F.A., CMFO and Chelsea Gleis, P.P. to complete the work based on their qualifications, experience, compensation “and other factors and criteria.” According to the resolution, fees will be $150 per hour for the work, not to exceed $6,000, or 40 hours. There is no time set for when the work has to be completed.
“This is an excellent move,” said Councilman Crowley when the question came up of whether the added expense is mandated or suggested.
“It makes sense, in my opinion, “ said Highlands Mayor Carolyn Broullon, when questioned after the meeting if Highlands would go along with the recommendation. “ For Atlantic Highlands to have a financial person representing Atlantic Highlands for financial mediation and not a labor attorney.”
Atlantic Highlands has retained Matthew Giacobbe as their attorney for the regionalization matter. Giacobbe has said more than once said at public meetings or on ZOOM when he was unable to attend a meeting that he is a labor attorney, not a financial attorney.
Broullon said Highlands will nonetheless go along with the recommendation and Steve Cea of the Porzio firm will represent both Highlands and Sea Bright in the preparation of whatever structure and analysis are needed for the mediation.
The Porzio firm is the firm both those boroughs contracted for the original study and all the financial investigations and considerations. The Mayor noted that while she does not have his hourly rate their contract with Porzio includes all the professionals they used for the study.
The Highlands Mayor also added that she believes the current two studies should have been enough.
“It is ridiculous that we are fighting over future savings that we don’t know how much that savings will be,” Broullon continued. “ All of the financial experts projections were wrong for 2022 equalized value of all three Boroughs. That should have taught everyone involved that we need to set a funding formula, then adjust it as needed until we lock into a 10 year formula.”
Broullon pointed out that the new law allows for a financial person involved during the mediation, “ but again, only Highlands and Sea Bright are talking about this, it’s maddening, honestly. This should have all been done in August. “
It was not clear whether the new firm retained by Atlantic Highlands, Beneke Economics, can refer to any of the financial information previously obtained by experts for the boroughs and the schools in their comprehensive feasibility reports paving the way for the vote on regionalizing. Nor was it clear why the information provided in these reports, studies financed by Sea Bright and Highlands as well as the Tri-District, are not sufficient to proceed with mediation.
At the Atlantic Highlands council meeting , upon further questioning by Fisher, Ferragina said the contract is necessary since each borough, under the state regionalization law, should retain a finance expert before mediation can be started. Borough Attorney Jason Sena said the attorneys from both Highlands and Sea Bright have agreed to the new directive and will be recommending it to their governing bodies. The attorney for this borough on the regionalization question, Matthew Giacobbe was not present at the meeting.
No mediator has been named to resolve the issues between Atlantic Highlands and the other two towns so there is no date for when the question of a preK-12 regional district can be voted on in Sea Bright, Highlands and this borough.
Broullon exasperated by the continual delays and lack of action on a question many officials and residents anticipated would be on the November ballot so the residents could decide if they wanted regionalization, recalled that the entire planning, financial ramifications and keeping the public informed of the process blew up the process when Giacobbe sent Highlands an agreement that was either “take it or leave it, , share 50-50 between the towns forever or get out of it if Atlantic Highlands agrees. To this end, Sea Bright is currently in a bad deal they can’t get out of, the Highlands Mayor continued, adding “But I refuse to do that to Highlands. I do not understand why the neighboring Council thought we would ever agree to those terms.”
