A regular meeting of the Township Council of the Township of Old Bridge was held on December 13, 2004 at the Municipal Complex. The meeting was called to order at 8:00 p.m. by President Baker who asked all present to participate in a salute to the flag which was followed by a short prayer.

Moment of Silence

President Baker requested a moment of silence for the Armed Forces serving abroad and at home and offered condolences to the family of Kenneth Banks, former water authority executive director.

Clerk, Rose-Marie Saracino, announced that pursuant to Section 5 of the Open Public Meetings Act, this meeting has been advertised in the Home News and Tribune and that the next public meeting would be held on Monday, December 20, 2004 at 7:30 p.m. at the municipal complex.

Roll call by Clerk Saracino showed the following council members answering present: Councilmen Butler, Calogera, Gillespie, Greene, Testino, Volkert, Councilwoman Panos, President Baker. Councilman Maher was absent.

Certificates of Recognition - Sayrewood South Little League District Winners.

Certificates were presented to three teams who won a district championship - Minor District Team (10 year olds); Major Division Team (12 year olds); Senior District Team (15-16 year olds) by Councilmen Greene, Calogera and Mayor Phillips. Mr. Pepe thanks the Mayor and council for this special recognition and Tom Badcock and Rocky Donatelli for all their help.

Recess 8:20 p.m.
Regular Meeting resumed at 8:25 p.m.

Roll call by Clerk Rose-Marie Saracino showed the following answering present: Councilmen Calogera, Gillespie, Greene, Testino, Volkert, President Baker. Councilman Butler and Councilwoman Panos were absent from the podium. Councilman Maher was absent.

Kiwanis Donation

Mr. Larry Redmond presented a donation in the amount of $1,000.00 to Camp Robin from the proceeds of a fund raising event.

RESOLUTION NO. 626

APPROVAL OF MINUTES

BE IT RESOLVED by the Township Council of the Township of Old Bridge, County of Middlesex, State of New Jersey, that:

the following minutes are hereby approved:

10/18/04 - Agenda/Executive
10/25/04 - Regular
11/08/04 - Combined/Executive
11/15/04 - Agenda/Executive
11/22/04 - Regular

Moved by Councilman Butler, seconded by Councilman Testino and so ordered on the following roll call vote:

AYES: Councilmen Butler, Gillespie, Testino, Volkert, President Baker. `

NAYS: None.

ABSTAIN: Councilmen Calogera, Greene, Councilwoman Panos.

ABSENT: Councilman Maher.

RESOLUTION NO. 627

BILL LIST

BE IT RESOLVED by the Township Council of the Township of Old Bridge, County of Middlesex, State of New Jersey, that:

WHEREAS, the Business Administrator has the responsibility of approving all vouchers subject to preaudit and control; and

WHEREAS, the Director of Finance is responsible for the preaudit, the disbursement of all monies and the control over all expenditures to ensure that the budget appropriations are not exceeded; and

WHEREAS, the finance committee of the Township Council has satisfied them in respect to the bill listing of December 13, 2004 that there exists a detailed bill or voucher supporting each payment and there is indication that goods or services have been received or rendered.

NOW, THEREFORE, BE IT RESOLVED by the Township Council of the Township of Old Bridge that the bill listing of December 13, 2004 as approved by the Business Administrator after preaudit and control by the Director of Finance and after review by the finance committee be spread on the minutes in the amount of $8,803,551.72 (Accounts Payable).

Moved by Councilman Butler, seconded by Councilman Calogera and so ordered on the following roll call vote:

AYES: Councilmen Butler, Calogera, Gillespie, Greene, Testino, Volkert, Councilwoman Panos, President Baker.

NAYS: None.

ABSENT: Councilman Maher.

RESOLUTION NO. 628

BILL LIST

BE IT RESOLVED by the Township Council of the Township of Old Bridge, County of Middlesex, State of New Jersey, that:

WHEREAS, the Business Administrator has the responsibility of approving all vouchers subject to preaudit and control; and

WHEREAS, the Director of Finance is responsible for the preaudit, the disbursement of all monies and the control over all expenditures to ensure that the budget appropriations are not exceeded; and

WHEREAS, the finance committee of the Township Council has satisfied them in respect to the bill listing of December 13, 2004 that there exists a detailed bill or voucher supporting each payment and there is indication that goods or services have been received or rendered.

NOW, THEREFORE, BE IT RESOLVED by the Township Council of the Township of Old Bridge that the bill listing of December 13, 2004 as approved by the Business Administrator after preaudit and control by the Director of Finance and after review by the finance committee be spread on the minutes in the amount of $761,942.30 (Payroll).

Moved by Councilman Butler, seconded by Councilman Testino and so ordered on the following roll call vote:

AYES: Councilmen Butler, Calogera, Gillespie, Greene, Testino, Volkert, Councilwoman Panos, President Baker.

NAYS: None.

ABSENT: Councilman Maher.

RESOLUTION NO. 629

BILL LIST

BE IT RESOLVED by the Township Council of the Township of Old Bridge, County of Middlesex, State of New Jersey, that:

WHEREAS, the Business Administrator has the responsibility of approving all vouchers subject to preaudit and control; and

WHEREAS, the Director of Finance is responsible for the preaudit, the disbursement of all monies and the control over all expenditures to ensure that the budget appropriations are not exceeded; and

WHEREAS, the finance committee of the Township Council has satisfied them in respect to the bill listing of December 13, 2004 that there exists a detailed bill or voucher supporting each payment and there is indication that goods or services have been received or rendered.

NOW, THEREFORE, BE IT RESOLVED by the Township Council of the Township of Old Bridge that the bill listing of December 13, 2004 as approved by the Business Administrator after preaudit and control by the Director of Finance and after review by the finance committee be spread on the minutes in the amount of $37,641.34. (Overtime).

Moved by Councilman Butler, seconded by President Baker and so ordered on the following roll call vote:

AYES: Councilmen Butler, Gillespie, Greene, Volkert, Councilwoman Panos, President Baker.

NAYS: Councilmen Calogera, Testino.

ABSENT: Councilman Maher

RESOLUTION NO. 630

BILL LIST

BE IT RESOLVED by the Township Council of the Township of Old Bridge, County of Middlesex, State of New Jersey, that:

WHEREAS, the Business Administrator has the responsibility of approving all vouchers subject to preaudit and control; and

WHEREAS, the Director of Finance is responsible for the preaudit, the disbursement of all monies and the control over all expenditures to ensure that the budget appropriations are not exceeded; and

WHEREAS, the finance committee of the Township Council has satisfied them in respect to the bill listing of December 13, 2004 that there exists a detailed bill or voucher supporting each payment and there is indication that goods or services have been received or rendered.

NOW, THEREFORE, BE IT RESOLVED by the Township Council of the Township of Old Bridge that the bill listing of December 13, 2004 as approved by the Business Administrator after preaudit and control by the Director of Finance and after review by the finance committee be spread on the minutes in the amount of $830,180.83 (Payroll).

Moved by Councilman Butler. seconded by Councilman Calogera and so ordered on the following roll call vote:

AYES: Councilmen Butler, Calogera, Gillespie, Greene, Testino, Volkert, Councilwoman Panos, President Baker.

NAYS: None.

ABSENT: Councilman Maher.

RESOLUTION NO. 631

BILL LIST

BE IT RESOLVED by the Township Council of the Township of Old Bridge, County of Middlesex, State of New Jersey, that:

WHEREAS, the Business Administrator has the responsibility of approving all vouchers subject to preaudit and control; and

WHEREAS, the Director of Finance is responsible for the preaudit, the disbursement of all monies and the control over all expenditures to ensure that the budget appropriations are not exceeded; and

WHEREAS, the finance committee of the Township Council has satisfied them in respect to the bill listing of December 13, 2004 that there exists a detailed bill or voucher supporting each payment and there is indication that goods or services have been received or rendered.

NOW, THEREFORE, BE IT RESOLVED by the Township Council of the Township of Old Bridge that the bill listing of December 13, 2004 as approved by the Business Administrator after preaudit and control by the Director of Finance and after review by the finance committee be spread on the minutes in the amount of $25,327.45 (Payroll Overtime)

Moved by Councilman Butler, seconded by President Baker and so ordered on the following roll call vote:

AYES: Councilmen Butler, Gillespie, Greene, Volkert, Councilwoman Panos, President Baker.

NAYS: Councilmen Calogera, Testino.

ABSENT: Councilman Maher.

Report of the Clerk

MONTHLY REPORT OF COLLECTIONS OF ROSE-MARIE SARACINO, TOWNSHIP CLERK

The following represents the collections made during the month of November 2004:

DOGS
2852-2878 181.00
2854,2861,2862 replacement 1.50
2878 issued at no cost – lost in mail

CATS
266-270 41.00

LICENSES
Hot Dog
Don’s Dogs 50.00

Limousine
Mirj Enterprises 50.00
Ahmed 50.00
Novak 5.00
Novak – Driver 50.00
Manhattan Limo 50.00

Sale of Christmas Trees
Junice 100.00

Taxi
Ed’s In Town Car Service 25.00

Raceway
Raceway Park – Renewal 500.00
880.00

BINGO/RAFFLE
RA 03-05 St Bernadette’s 50.00
RA 04-05 Southwood School PTA 70.00
RA 05-05 St Thomas Church 20.00
RA 06-05 St Thomas Church 10.00
RA 07-05 St Thomas Church 10.00
BA 08-05 St Bernadette’s 520.00
BA 09-05 St Bernadette’s 510.00
RA 10-05 Laurence Harbor First Aid 20.00
RA 11-05 Holmdel Education Foundation 300.00
RA 12-05 St Ambrose Church 10.00
1,520.00

PARKING PERMITS
#1506-1652 (133 permits) 3,325.00
#1513,1525,1535,1539,1571,1579,1592,1601,1605,1606,1610,1620, 1640,1644
replacements 70.00

Temporary Permits
460-464 25.00

3,420.00

MISCELLANEOUS
Photocopies 272.35
Reimb for Polling Place 450.00
Late fee – DOG 20.00
742.35

TOTAL $6,785.85

Motion

to accept the Report of the Clerk made by Councilman Butler, seconded by Councilman Calogera and so ordered on the following roll call vote:

AYES: Councilmen Butler, Calogera, Gillespie, Greene, Testino, Volkert, Councilwoman Panos, President Baker.

NAYS: None.

ABSENT: Councilman Maher.

Prior to the roll call vote the following discussion took place.

Councilman Calogera: I would like an update on the Inverness parking facility with respect to participation and the amount of money taken in. Are we running about one hundred fifty cars a day?

Clerk Saracino: That information does not come from my department. We only issue the parking permits and do not have a breakdown of that information.

Scott Wolman: We collect about $150 per day for Inverness and about $380 for Westminster. Dave Merwin collects the money and deposits it in the bank and delivers the transmittal sheets to finance.

Preliminary public comments.

Mr. Dunlop: Responded to an article in the Suburban entitled "Taking Credit Where Credit is not Due" as written by Councilman Calogera with respect to the new ordinance creating the commercial, office, industrial zone. His opinion is that this ordinance is a great idea and that Mayor Phillips should take the credit for it.

Mr. Valentino: Informed the Township Council that the "smoking" ordinance No. 43-02 was recently challenged in court and that Attorney Convery prepared a wonderful brief defending the ordinance.

Attorney Convery: Carol Berlen wrote the brief.

Mrs. Seiler: Expressed her concerns about filling the redevelopment agency positions and her dismay that a request for resumes was not posted; believes that there is a flaw in the ordinance; and that Mr. Volkert should have abstained from the vote that appointed his brother to a post in the agency.

Hearing

Budget Amendments

Township of Old Bridge
Budget Amendment
SFY 2005
FROM TO
3. Miscellaneous Revenues - Section B: State Aid Without Offsetting Appropriations

Extraordinary Aid 0.00 300,000.000
Garden State Pilot Program 13,389.00 22,492.00

Total Section B: State Aid Without Offsetting Appropriations 8,557,935.00 8,867,038.00

3. Miscellaneous Revenues - Section F: Special Items of General Revenue Anticipated with Prior Written Consent of Director of Local Government Services - Public and Private Revenues Offset with Appropriations:

DWI Grant 0.00 29,627.00
Recycling Tonnage Grant 0.00 15,560.00
County Homeland Security 0.00 70,000.00
Information & Assistance 8,000.00 15,000.00
Downtown & Business District Improvement Fund Grant 0.00 100,000.00

Total Section F: Special Items of General Revenues Anticipated with Prior Written Consent of Director of Local Government Services – Public and Private 220,382.00 442,569.00

3. Miscellaneous Revenues - Section G: Special Items of General Revenues Anticipated with Prior Written Consent of Director of Local Government Services - Other Special Items:

Sale of Land 600,000.00 737,000.00
UCC Additional Revenue 200,000.00 240,000.00

Total Section G: Special Items of General Revenues Anticipated with Prior Written Consent of Director of Local Government Services - Other Special Items 3,537,641.00 3,714,641.00

Summary of Revenues
3. Miscellaneous Revenues:

Total Section B: State Aid Without Offsetting Appropriations 8,557,935.00 8,867,038.00

Total Section F: Special Items of General Revenues Anticipated with Prior Written Consent of Director of Local Government Services - State & Federal Revenues 220,382.00 442,569.00

Total Section G: Special Items of General Revenues Anticipated with Prior Written Consent of Director of Local Government Services - Other Special Items 3,537,641.00 3,714,641.00

Total Miscellaneous Revenues 15,844,924.00 16,553,214.00

5 Subtotal General Revenue (Item 1,2,3 and 4) 23,543,394.00 24,251,684.00

6 Total Amount to be Raised by Taxes for Support of Municipal Budget 24,153,435.00 23,318,684.00

10 Total General Revenue $47,696,829.00 $47,570,182.00 1039

8 (A) Operations - Within "CAPS"

Office of the Mayor
Other Expenses 14,875.00 17,375.00

Cultural Arts
Other Expenses 19,000.00 22,000.00

Division of Economic Development
Salaries & Wages 85,000.00 0.00
Other Expenses 10,000.00 0.00

Township Clerk
Other Expenses 127,700.00 148,700.00

Elections
Salary & Wages 1,000.00 1,750.00

Purchasing
Salary & Wages 38,854.00 48,854.00

Municipal Court
Salaries & Wages 0.00 369,621.00
Other Expenses 0.00 98,977.00

Recreation
Salaries & Wages 1,444,304.00 1459,314.00
Other Expenses 217,550.00 229,550.00

Office on Aging
Salaries & Wages 364,868.00 384,868.00

Public Safety
Salaries & Wages 10,500,060.00 10,546,954.00

Engineering
Salaries & Wages 684,772.00 695,272.00

Planning & Development
Other Expenses 132,150.00 195,150.00

Building & Maintenance
Salary & Wages 235,031.00, 207,531.00
Other Expenses 100,400.00 165,400.00

Employee Termination
Salaries & Wages 800,000.00 450,000.00

Salary Adjustment
Salaries & Wages 749,957.00 772,778.00

Subcode Official
Salaries & Wages 802,587.00 835,456.00
Other Expenses 168,700.00 237,700.00

Total Operations {Item 8(A)} within "CAPS" 26,264,007.00 26,654,449.00

Total Operations Including Contingent - within "CAPS" 26,284,007.00 26,654,449.00

Detail:
Salary & Wages 20,380,030.00 20,445,995.00
Other Expenses(Including Contingent) 5,903,977.00 6,228,454.00

(E) Deferred Charges and Statutory Expenditures - Municipal Within "CAPS"

(1) Deferred Charges
Prior Year Bill: OBMUA 0.00 15,424.00

(2) Statutory Expenditures

Social Security (O.A.S.I.) 931,500.00 867,500.00

Total Deferred Charges and Statutory Expenditures - Municipal Within "CAPS" 115,438.00 66,862.00

(H-1) Total General Appropriations for Municipal Purposes within "CAPS" 27,431,045.00 27,772,911.00

(A) Operations - Excluded from "CAPS"
Municipal Court
Salaries & Wages 369,621.00 0.00
Other Expenses 98,977.00 0.00

Group Insurance
Other Expenses 7,377,622.00 7,194,161.00

Police and Firemen's Retirement System
Other Expenses 343,814.00 425,331.00

Public & Private Programs Offset by Revenues

DWI Grant
Salaries & Wages 0.00 29,627.00

Information & Assistance
Other Expenses 0.00 7,000.000

Recycling Tonnage Grant
Other Expenses 0.00 15,560.00

County Homeland Security
Other Expenses 0.00 70,000.00

Downtown and Business District Improvement Fund Grant
Other Expenses 0.00 100,000.00

Total Operations - Excluded from "CAPS 10,663,905.00 10,315,550.00

Detail:
Salary & Wages 570,285.00 230,291.00
Other Expenses 10,093,620.00 10,085,259.00

Capital Improvements - Excluded from "CAPS"

Middlesex County Improvement Authority 31,651.00 32,196.00

Total Capital Improvements Excluded from "CAPS" 281,651.00 282,196.00

(d) Municipal Debt Service - Excluded from "CAPS"

Interest on Bonds 1,602,610.00 1,500,694.00

Total Municipal Debt Service - Excluded from "CAPS" 6,046,870.00 5,944,954.00

(H-2) Total General Appropriations for Municipal
Purposes Excluded from "CAPS" 17,577,400.00 17,127,674.00

(O) Total General Appropriations Excluded from "CAPS" 17,577,400.00 17,127,674.00

(L) Subtotal General Appropriations {Items(H-1) and (O)} 45,008,445.00 44,900,585.00

(M) Reserve for Uncollected Taxes 2,688,384.00 2,669,597.00

9 Total General Appropriations 47,696,829.00 47,570,182.00 0

Dedicated Revenues From Arena Utility
Operating Surplus Anticipated 100,000.00 118,000.00

Total Arena Utility Revenues 665,726,00 683,726.00

Appropriations For Arena Utility

Operating:
Other Expenses 195,800.00 213,800.00

Total Arena Utility Appropriations 665,726.00 683,726.00

Appropriations For Parking Utility

Operating:
Salaries & Wages 55,000.00 45,000.00
Other Expenses 15,500.00 25,500.00

Total Parking Utility Appropriations 206,000.00 206,000.00

President Baker opened a public portion.

Ms. Seiler: Expressed her disappointment that the amendments to the budget were not posted in a public place even though they were published in the newspaper. Inquired as to the status of $85,000 designated to the EDC; why certain departments' budgetary requests were exceeded. Encouraged a tax decrease.

Seeing no further hands President Baker closed the public portion.

Motion

to accept the foregoing amendments to the SFY 2004/2005 Budget made by Councilman Butler, seconded by President Baker and so ordered on the following roll call vote:

AYES: Councilmen Butler, Calogera, Gillespie, Greene, Testino,Volkert, Councilwoman Panos, President Baker.

NAYS: None.

ABSENT: Councilman Maher

Prior to the roll call vote the following discussion took place.

Mr. Shah: The primary reason for the subcode increase is the annual transfer of the amount of social security costs relating to the employees which is transferred into the budget. Their budget is self-supporting. This was part of the social security line item. As it appears on page 2, the figure $931,000 will now be $867,500, that money was transferred into the subcode budget. This is a reallocation of the cost.

President Baker: The first question related to the EDC. There was some revenue, and it was amended to have no revenue.

Mr. Shah: We had originally planned to bring the operation of the EDC within the municipal administration. That plan was changed, and that is why it has been removed.

Mayor Phillips: This was a decision that was made during the budget process. Sometimes you make changes when you think things could be better. Sometimes you come to the realization that some things are better off left alone. We rethought bringing Russ Azzarello, the executive director of the EDC, into a staff position in town. The more we looked at it, and the more we got to work with the EDC directly, we think that he is doing such a good job for the EDC we did not want to change it. The reduction is in the amount of $85,000 which is consummate to his costs, benefits and operating costs that we would have included in the budget. We increased the EDC budget by a proportionate amount.

Mr. Shah: The EDC budget is $80,000 contributions versus $95,000 that we had in the budget.

Mayor Phillips: This just means leaving Russ Azzarello as an employee of the EDC as opposed to making him an employee of the Township of Old Bridge with the hope that he is going to continue doing the same outstanding job working with the EDC. I was originally selfish because I wanted Russ Azzarello in the administration in town hall every day. When businesses come into town, they want someone who is knowledgeable and can sell the town - both of which Russ can do. I see many projects about to be consummated. I know that there are interested parties who are interested in bringing good things to Old Bridge, whether it be through his interaction with the YMCA or different shopping malls that are looking to relocate along Rt. 9. He has done a good job, and we decided to leave well enough alone.

Councilwoman Panos: Is that $95,000 coming out of planning?

Mr. Shah: Up until last year we contributed $75,000 to the EDC; we increased that to $80,000. The $95,000 that is in the salary and OE for the EDC department is now zero.

Councilwoman Panos: There is also a $25,000 contribution to the EDC (item No. 217). What becomes of that?

Mr. Shah: The number becomes $80,000 total.

Councilwoman Panos: The original $95,000 budget plus the additional $50,000 that was a contribution before the amendments transforms into $80,000.

Councilman Greene: At the last meeting we were given amendments. Tonight there are amendments before us. I want to be sure that they are the same.

Mr. Shah: What you introduced is what you have before you tonight.

Councilman Greene: We are being asked to vote on the amendments, and then you want us to vote on the budget - two different votes. I have comments which I will wait to make until we vote on the budget.

Councilman Testino: I am happy to see that the administration held to the campaign promises of zero tax increase. I know that this was a difficult budget year, and this will be the third year in a row that we have a zero tax increase. It is important to allow the citizens to know that we have that stabilized tax base. I challenge you to take a hard look at the upcoming fiscal budget. I believe that in this process we are able to continue to add to the surplus that the bonding company required. We are keeping our ratings intact, and that is a good commitment that is being carried on with this amendment and part of our pledge. I would like to see that continue in the upcoming year. The mayor, council and the administration have seen fit with this budget to still deliver valuable core services of the township. We have brought the police force up to full strength, and we have been able to keep that manpower in place.

A slight disappointment is the amount of the grant which was $300,000. When you are starting with a budget which we have strived to stabilize, the state has a hard time seeing that good financial planning should reap some rewards back to us. I thank Mr. Butler and the mayor for their good services lobbying for that. I understand that we are still keeping the grant writer's money in the budget. I look forward to the grant writing bringing more money into the budget to relieve some of the pressures that we have experienced.

I commend the mayor for seeing fit to push ahead with master plan money to try to get that ordinance moving. I thank Mr. Shah for trying to place some of the cost to the cost center as he just showed us with this amendment. Since we have certain state mandated programs, and code enforcement is one of those, it is important to put the cost at the cost center so that we are able to recognize that the revenue derived from those programs are applied to the cost. That is something that Mr. Jacobs helped us realize. I thank the administration, and I will be voting in the affirmative and for a zero tax increase.

RESOLUTION NO. 632

ADOPTING SFY 2004-2004 BUDGET

BE IT RESOLVED by the Township Council of the Township of Old Bridge, County of Middlesex, State of New Jersey, that:

the budget herein before set forth is hereby adopted and shall constitute an appropriation for the purposes stated of the sums therein set forth as appropriations, and authorization of the amount of:

(a) $23,318,498.00 (Item 2 below) for municipal purposes, and
(b) $0 (Item 3 below) for school purposes in Type I school Districts only (N.J.S.A. 18A:9-2) to be raised by taxation and
(c) $0 (Item 4 below) to be added to the certificate amount to be raised by taxation for local school purposes in Type II School Districts only (N.J.S.A.18A:9-3) and certification
to the County Board of Taxation of the following summary of general revenues and appropriations

Summary of Revenues

1. General Revenues Surplus Anticipated 40003-10 $6,313,470.00
Miscellaneous Revenues Anticipated 40004-10 $16,553,214.00
Receipts from Delinquent Taxes 41419-10 $1,385,000.00
2. Amount to be Raised by Taxation for Municipal Purposes (Item 6(a), Sheet 11)
41415-10 $23,318,498.00
3. Amount to be raised by taxation for Schools in Type I School Districts only:
Item 6, Sheet 42 40010-10 $
Item 6(b), Sheet 13 (NJSA 40A:4-14) 41416-10 $

Total amount to be raised by taxation for Schools in Type I School Districts only $

4. To be added to the Certificate for amount to be raised by taxation for schools in Type II School Districts only:
Item 6(b), Sheet 13 (NJSA 40A:4-14) 41416-10 $
Total Revenues 40000-10 $47,570,182.00
Summary of Appropriations
5. General Appropriations

Within “CAPS”
(a&b)Operations including contingent $26,674,449.00
(e) Deferred charges and statutory expenditures - municipal $1,098,362.00
(f) Judgments 100.00

Excluded from “CAPS”
(a) Operations - total operations excluded from “CAPS” $10,315,550.00
(c) Capital Improvements 282,196.00
(d) Municipal Debt Service 5,944,954.00
(e) Deferred Charges - Municipal 584,974.00
(n) Transferred to Board of Education for Use of Local Schools 0.00
(g) Cash Deficit 0.00
(k) For Local District School Purposes 0.00
(m) Reserve for Uncollected Taxes (include other reserves if any) 2,669,597.00

6. School appropriations - Type I School Districts Only (NJSA 40A:4-13)

TOTAL APPROPRIATIONS $47,570,182.00

Moved by Councilman Testino, seconded by Councilman Butler and so ordered on the following roll call vote:

AYES: Councilmen Butler, Calogera, Gillespie, Greene, Testino, Volkert, President Baker.

NAYS: None.

ABSENT: Councilman Maher.

ABSENT PODIUM: Councilwoman Panos.

Prior to the roll call vote the following discussion took place.

Councilman Greene: I negotiated the budget for the City of New York, and when this is done, everything may not be what you want, but ultimately, you hope that your priorities are met and that the services that you feel the residents deserve, they get, and that the agencies are fully staffed. That is how I view this budget. I see good. I see bad. I would like to alert the administration and the council that we all have to work diligently and hard in the next year. If we don't, we will see the ugly. The good I see is that there is no tax increase. I like the idea that the first aid squads are getting additional funding. I also feel good about the fact that our fund balances are sufficient, that the rating agencies will keep our bond rating, which is important. If we don't keep that rating, that will cost us more in interest. I was more active in the township's balance last year, and in that role I directly spoke with the finance director with the representatives of the bond rating agency who told us that the key was the fund balances. Mr. Shah, do you believe that we are okay in what the bond rating agencies expect of us?

Mr. Shah: Yes, I do.

Councilman Greene: If you look at the document provided here and given to us when the budget was presented, Mayor Phillips said that the challenges have required the use of several one-time revenues. He also said that financial security cannot be achieved indefinitely with one-time revenues. The finance director is on record as saying that the amounts will have to be made up through other means next year. What they are saying is that we have revenues that came in which enable us to balance this budget. If we don't take steps between now, next year when we put together the budget, we will be in a hole.

We received $1.5 million as a result of a tax court judgment. There was a company who wanted to operate in the township. They built a building, and did not pay their taxes, but through the court process, we were able to get $1.5 million from them. We are not getting that next year.

Another clear alarm is that we have issued debt for projects and some of the projects did not go forward or came in less than anticipated. We are taking $1 million of capital projects which we issued debt service for which we will be paying for over a period of time. We are using that to close this budget. We sold land for about $737,000 - another one shot. We received a one-shot through the sale of a liquor license. These items amount to $3.6 million which we are not going to have next year. If the economy tanks; if the real estate market falters, the township will have serious problems next year. You have to look at a budget as a whole, and we do have a no tax increase budget. With this warning that I have presented to the administration, we can take the necessary steps so that we don't have the ugly next year.

Councilman Calogera: It is nice to have a zero increase, and I am happy for that. I have the same concerns as Mr. Greene with one-time revenues. There are certain areas where we are going to have to pay more attention to with the growth of the town. We are stressing our public works department; our rec. programs are getting expanded; our library needs more consideration in the future. We need to look down the road and ask how we are going to tighten up and accomplish these things and still stay within a zero increase.

If we start with $3.6 million behind next year, it will be hard to keep up. Instead of giving the attention to those departments who will need it for the expansion of services, we will have to cut services. The administration may want to give the council an idea of how they will close that gap next time.

Councilwoman Panos: There was an MCIA recycling fee that was increased $457,000 over what was spent last year.

Mr. Shah: I think that we distributed a letter that we received from the MCIA. There was a tipping fee tax that they were collecting which expired, and the county was subsidizing the cost of recycling over the last several years to many towns from the collected taxes. Those taxes were depleted, and the towns have to pay the full share of the cost.

Councilwoman Panos: Will this be an annual increase or is it just what we owe?

Mr. Shah: This is a one-time increase to bring us to pay the full service cost. It was being subsidized in the past. There won't be another $500,000 increase, but the total cost in the budget now is the cost going forward. There may be an increase depending on the bids received and upon additional services provided.

Councilwoman Panos: There are twenty or so items that we budgeted more money for. You might have a contingent amount (Item No. 870) which is $15,000 over what was actually spent last year. Don't we hold the departments accountable?

Mr. Shah: In some cases that may be true; in others it may create a problem. Even though we budgeted for 104 police officers, we only had 97. The net expenses were less than what was budgeted. We have a full complement this year. If you short change yourself based on last year's expenses, you will be short changed by the year end. A contingency budget is another area. It means that if there is a contingency, an item of expense that does not fall into any other category of other appropriations, is where it gets charged. Some years there may or may not be expenses against it. You have to fund certain amounts. That is why it is not based on the expenses. When you compare the expenses, you have to be careful. In many departments when an employee either resigns or retires, and we have a gap period prior to rehiring another employee, the expenses will be less than the actual budgeted amount.

Councilwoman Panos: In the Clerk's office we are budgeting almost $14,000 over what we spent last year. Do we anticipate the post rate to rise?

Mr. Shah: There is a new item this year. As you will recall we did a temporary emergency appropriation and put the money in the Clerk's office for the codification company. The amendment covers the additional cost of the codification.

Councilwoman Panos: I am referring to the postage amount in the Clerk's budget. There is also a "redistricting elections" cost. Are we redistricting this year?

Clerk Saracino: The county has not said if they are doing a redistricting.

Mayor Phillips: We redistricted by ward, not by district. Ward 1, District 5 is enormous and will have to be split.

Councilwoman Panos: We are giving the tax assessor $25,000 more than they spent last year (Item Nos. 286 and 294).

Mr. Shah: This is the cost of the tax appeal, and some years we have more than others. We did not have many last year; the cost was less.

Councilwoman Panos: If we are budgeting for $25,000 over and took half of that, we would still be saving the taxpayer about $300,000.

Mayor Phillips: I have consulted with Brian Enright, and we anticipate that are going to have a very litigious year with respect to tax appeals. Instead of under budgeting we are trying to give you the fairest representation as we can as to what the cost will be.

Councilwoman Panos: The legal department is budgeted $54,123 over what they spent last year. Why not give them half?

Mr. Shah: We go through these questions and answers in departmental meetings. The council committee then meets, and many items are discussed. If you base this on expenses, you will cause a problem because in all the departments mentioned, the actual costs are not predictable. Year after year there may be a consistent amount, a slight increase or perhaps a lowering of the costs because we can predict some of them. In the area of litigation, we cannot predict. The legal department has legal representations for police officers for which they hire attorneys. Some years there are more than others. Under the contract we are obligated to hire attorneys. Most of the departments mentioned by you are those where we have either unpredictable costs from one year to another. We are trying to consistently budget the same amount.

Councilwoman Panos: I am happy with a no increase budget; but I am unhappy because I have reviewed this budget and believe that it could have been cut more. We have allocated monies above which should have been. If we took one half of the allocations that are already above and beyond, we could have saved $297,000. I believe that $75,000 for the redevelopment agency should have been $37,000 because we have already gone six months into the year. I say that we could have brought this down one cent.

President Baker: I hope that the council woman forwarded her suggestions to the department heads, and it is my wish and hope that they will take this under consideration. I thank the entire council who took the opportunity to attend the budget workshops. I appreciate the department heads' efforts.

Councilman Butler: I want to take you back to 2002 when the criteria was changed for township eligibility for state aid. There was an initial allocation of $100,000. The administration and a few council people were able to speak to the administration of the Division of Local Government Services and we received an additional $100,000. We received $200,000. We looked at the process and decided what we had to do for the next budget year, and followed through on that. We revisited Trenton for the 2004 budget, and we were successful in convincing them that we needed additional state aid, and they gave us $300,000. You have a chance to do something with one-shot revenues. If you don't have the one-shot revenues, you don't have the opportunity to do anything. The mayor was kind enough to ask me and Messrs. Shah and Jacobs to visit Trenton.

We have been down to Trenton a lot over the years, and when we came out of the budget meeting, I thought that I was beat about the head and shoulders. There is a process, and we have to go along with that process. We were told that we could take the surplus and cancel out what you are short. If you take the surplus and cancel out what you are short. Moody's and Standard and Poor's will increase your bond rating. If that is done, that is going to cost us much more money to borrow. What sense does that make? That is what we do when we go to Trenton. We have to clarify these things for those people. I told the mayor that he was going to have to carry the ball, and I congratulate him for securing our $300,000.

Councilman Gillespie: Any budget is a collection of choices and priorities. We had to beat the bushes and take actions in order to raise more revenue. Given the choice between raising revenue and taxes, certainly raising whatever non tax revenue is certainly preferable. Having been here in 1992 and 1993 when we could not even pay bills, this is a welcome choice for me. I want to commend the administration and the council for bringing in a budget without a tax increase for the third year in a row, and we should continue to do this next year. As to some of the areas where spending was increased, Councilwoman Panos mentioned two issues that we should not cut.

One is the assessor. If we are going to be able to defend ourselves adequately against tax appeals, the cost will be more than $25, 000 or $50,000 or whatever we are spending on legal fees. The other is with respect to the legal department. We are going through contract negotiations now. Skimping on money to have to pay labor lawyers is penny wise and pound foolish. If we go south there, the cost will be a lot more than the $25,000 or $40,000 we might spend on hiring competent experts to get us through the process.

The last line of the budget message is that ours like many of the municipal budgets is salary, wage, health benefits, pension expenses which are the areas which we must be vigilant on. We need to watch these in terms of our personnel costs because those things are killers in terms of the budget. I am going to vote for this budget proudly. I commend all involved in this project - the administration, council members, Councilman Greene for working with me on the administration committee and Councilman Maher on the finance committee. I will be voting "yes".

President Baker: Walking around Ward II with the mayor,people [tell me they want] a patrol car to show up when they call; they want their streets plowed; and they want us to do whatever we can not to raise taxes. We have done that.

Consent Agenda

President Baker opened a public portion.

Ms. Seiler: Inquired why the address of some contractors are mentioned; others are not.

Mr. Jacobs: Contracts are public information and available in the clerk's office.

President Baker: Let's include the address on the agenda. We will have an answer in thirty days.

Mayor Phillips: You will see your answer when you see the next agenda. The address will or will not be on it.

Seeing no further hands President Baker closed the public portion.

RESOLUTION NO. 633

AUTHORIZING RETURN OF DEPOSIT MONIES FROM THE TOWNSHIP OF OLD BRIDGE LAND SALE HELD ON AUGUST 25, 2004

BE IT RESOLVED by the Township Council of the Township of Old Bridge, County of Middlesex, State of New Jersey, that:

WHEREAS, the Township of Old Bridge conducted a land sale on August 25, 2004; and

WHEREAS, Lot 30 and 31 in Block 13005 were purchased by Gregory DeStefano; and

WHEREAS, the Township of Old Bridge received deposit monies on the properties in the amounts of $7,200.00 for Lot 30 and $6,800.00 for Lot 31; and

WHEREAS, after a period of due diligence, Mr. DeStefano has determined that he does not want to purchase these lots; and

WHEREAS, Mr. DeStefano has requested that the deposit monies in the amounts of $7,200.00 for Lot 30 and $6,800.00 for Lot 31 be returned.

NOW, THEREFORE, BE IT RESOLVED by the Township Council of the Township of Old Bridge, County of Middlesex, State of New Jersey that the finance department is hereby authorized to return the deposit monies for Block 13005, Lot 30 in the amount of $7,200.00 and for Block 13005, Lot 31 in the amount of $6,800.00 to Mr. DeStefano.

Moved by Councilman Butler, seconded by Councilman Calogera and so ordered on the following roll call vote:

AYES: Councilmen Butler, Calogera, Gillespie, Greene, Testino, Volkert, Councilwoman Panos, President Baker.

NAYS: None.

ABSENT: Councilmen Maher.

RESOLUTION NO. 634

AUTHORIZING THE RENEWAL OF LICENSE FOR OLD BRIDGE RACEWAY PARK, INC. FOR THE YEAR 2005

BE IT RESOLVED by the Township Council of the Township of Old Bridge, County of Middlesex, State of New Jersey, that:

WHEREAS, the license for Old Bridge Township Raceway Park, Inc. is hereby renewed for the year 2005 subject to the following:

1. Old Bridge Raceway Park, Inc. make periodic announcements requesting patrons to refrain from disposing litter on the roads when exiting the park and that the patrons leave the park and drive through the Township of Old Bridge in a quiet and orderly manner; and

2. No unmuffled motors will begin prior to 10:00 a.m. and that unmuffled racing will cease at 10:00 p.m. with the exception of three (3) special evenings' events, one each in June, July and August.

Moved by Councilman Butler, seconded by Councilman Calogera and so ordered on the following roll call vote:

AYES: Councilmen Butler, Calogera, Gillespie, Greene, Testino, Volkert, Councilwoman Panos, President Baker.

NAYS: None.

ABSENT: Councilmen Maher.

RESOLUTION NO. 635

AUTHORIZING THE PURCHASE OF ONE (1) 2005 CHEVY BLAZER FOUR WHEEL DRIVE VEHICLE UNDER STATE CONTRACT NO. 53131 FROM WARNOCK FLEET, EAST HANOVER, NJ

BE IT RESOLVED by the Township Council of the Township of Old Bridge, County of Middlesex, State of New Jersey, that:

WHEREAS, the Township of Old Bridge wishes to purchase one (1) 2005 Chevy Blazer Four Wheel Vehicle under State Contract No. 53131; and

WHEREAS, the Township of Old Bridge wishes to purchase the aforesaid vehicle for the price of $17,953.00; and

WHEREAS, the Township of Old Bridge wishes to award the State Contract No. 53131 to Warnock Fleet for the one (1) 2005 Chevy Blazer Four Wheel Drive vehicle.

NOW, THEREFORE, BE IT RESOLVED by the Township Council of the Township of Old Bridge, County of Middlesex, State of New Jersey as follows:

1. Warnock Fleet, 176 Route 10, East Hanover, NJ is hereby awarded a contract in the amount of $17,953.00 for one (1) 2005 Chevy Blazer Four Wheel Drive vehicle.

2. The award of the contract is contingent upon the issuance of a Certification of Availability of Funds No.1294 certifying the existence of a sufficient appropriation to fund the said contract.

3. The Mayor and Township Clerk are hereby authorized to sign the contract documents necessary to effectuate the award of this contract. The township attorney shall review any and all contractual documents prepared in furtherance of this award.

This resolution is conditioned upon the following:

A. Formal execution of a contract approved by the Director of Law

B. Issuance of a Certificate of Availability of Funds as aforesaid.

C. Compliance by the vendor with filing of Affirmative Action Form AA302 or AA201 or otherwise complying with affirmative action employee information reporting.

No contract shall be considered awarded unless and until the above requirements are executed.

BE IT FURTHER RESOLVED that a true copy of this resolution shall be deposited with the following township offices: the engineering department.

Moved by Councilman Butler, seconded by Councilman Calogera and so ordered on the following roll call vote:

AYES: Councilmen Butler, Calogera, Gillespie, Greene, Testino, Volkert, Councilwoman Panos, President Baker.

NAYS: None.

ABSENT: Councilmen Maher.

RESOLUTION NO. 636

AUTHORIZING THE EXTENSION OF A CONTRACT BETWEEN THE TOWNSHIP OF OLD BRIDGE AND APPUZZESE, MC DERMOTT, MASTRO FOR CONTINUED UNION NEGOTIATIONS

BE IT RESOLVED by the Township Council of the Township of Old Bridge, County of Middlesex, State of New Jersey, that:

WHEREAS, the Township of Old Bridge previously entered into a contract for SFY 2004 with Apruzzese, McDermott, Mastro for professional services with regard to continued union negotiations; and

WHEREAS, an extension to the contract with Apruzzese, McDermott, Mastro is requested in the amount of $5,000 for continued union negotiation; and

WHEREAS, the Township Council wishes to extend the contract in the amount of $15,000.00

NOW, THEREFORE, BE IT RESOLVED by the Township Council of the Township of Old Bridge, County of Middlesex, State of New Jersey as follows:

1. An extension of the contract is awarded to Apruzzese, McDermott, Mastro in regard to continued union negotiations in the amount of $15,000.00.

2. The award of the contract is contingent upon the issuance of a Certification of Availability of Funds No. 1295 certifying the existence of a sufficient appropriation to fund the extension of said contract.

3. The Mayor and Township Clerk are hereby authorized to sign the contract documents necessary to effectuate the award of this contract. The township attorney shall review any and all contractual documents prepared in furtherance of this award.

Moved by Councilman Butler, seconded by Councilman Calogera and so ordered on the following roll call vote:

AYES: Councilmen Butler, Calogera, Gillespie, Greene, Testino, Volkert, Councilwoman Panos, President Baker.

NAYS: None.

ABSENT: Councilmen Maher.

RESOLUTION NO. 637

APPROVING CHANGE ORDER NO. 1 TO DEFINO CONTRACTING COMPANY FOR CONTRACT NO. 01-22 FOR PAVEMENT REHABILITATION AT CANYON WOODS DEVELOPMENT

BE IT RESOLVED by the Township Council of the Township of Old Bridge, County of Middlesex, State of New Jersey, that:

WHEREAS, the Township Council of the Township of Old Bridge previously authorized Contract No. 01-22 with the firm of Defino Contracting Company for pavement rehabilitation at Canyon Woods; and

WHEREAS, Defino Contracting Company has requested Change Order No. 1 to increase the amount of the contract due to the changes in the contract quantities and extra work.

NOW, THEREFORE, BE IT RESOLVED by the Township Council of the Township of Old Bridge, County of Middlesex, State of New Jersey that Change Order No. 1 is hereby authorized as set forth on the attached Change Order.

BE IT FURTHER RESOLVED that the modified cost of services after this Change Order is as follows:

Original Contract ………………………………………. $173,870.67
Change Order No. 1 ……………………………………....+1,230.00
New Total Authorized …………………………………. $175,100.67
(Total Amount of Change Order ……………………..... $1,230.00)

BE IT FURTHER RESOLVED that the Mayor and Clerk of the Township of Old Bridge are hereby authorized to execute such written contract documents as may be approved in form by the township attorney.