Holmdel BOE Does Not Owe Township $400,000, Says President

The following is a statement distributed by Holmdel Township School Board President Barbara Garrity late Friday, Feb. 24.

At Thursday night’s meeting, the Holmdel Township Committee announced that it had just discovered that the Holmdel Township Board of Education owed the Township $400,000.  The Township Committee chose to make this statement, even after the School District’s Business Administrator (BA) challenged the accuracy of this claim to the Township’s Acting Chief Financial Officer prior to the meeting.   In fact, we were notified only hours before the Township Committee meeting took place. 

Several years ago, the Board, the Township and a local fundraising group entered into a shared services project to convert the playing surface of Holmdel High School’s Roggy Field to artificial turf.  The project cost was estimated at $1.6 million.  The Township and District each agreed to contribute $400K, with the remaining $800K to be paid through fundraising activities. 

The Board paid all but $700 of its share -- $350K to the Township, plus $49.3K to Kinsey Associates, the project architect, for services rendered on the project. 

The Board never received a final analysis of the project costs.  However, in early 2009, the District BA informally received preliminary numbers from the Township Administrator / CFO at the time, Mr. Annecharico.  At that point, the project had been completed under budget at a cost of $1,443,300, but fundraising efforts had fallen short and produced only $106K. 

That left $1,337,300 to be split between the Township and School District, or $668,650 for each party.  Given the District’s prior payments to the Township and the project architect, our remaining unpaid share would be $269,350, not $400,000.

At this same 2009 meeting, the Township Administrator/CFO said the Township intended to finance the remaining project costs, including the District’s remaining obligation of $269,350, along with other projects, through a 20-year bond issue.   He indicated that after this took place, the Township would provide the District with a final project accounting, along with an amortization schedule from the Township.

To date, the Board has never received either a final accounting or an amortization schedule from the Township. 

Once we have the final accounting and payment schedule, we will be happy to pay our share of the debt service on these bonds.  If there are back payments owed, due to the Township’s failure to provide us with the needed information, we will bring those payments up to date promptly.  However, we do not owe a lump sum payment of the $269,350 financed by the bonds, nor do we owe the Township $400K.

We look forward to receiving a final project accounting and an amortization schedule from the Township.  We regret that the Township did not address this matter with the Board in a timely manner.  If that had occurred, this error could have been corrected and the public would have received an accurate accounting of the District’s Roggy Field obligation.