By: Purvi Desai
PLUMSTED The state Local Finance Board on Sept. 13 postponed its decision to grant school officials an extension of credit for school expansions to next month, citing lack of information on a $20 million municipal bond ordinance that the Township Committee introduced last month.
This decision has not delayed the district’s $37.6 million expansion referendum, set for Dec. 12, but school officials are hopeful they will eventually receive approval from the LFB, which must approve all debt taken on by local governments and school districts.
Chris Donnelly, an LFB spokesman, said the board and has asked a Township Committee representative to attend its next meeting on Oct. 11, as it needs to collect additional information on the township’s ordinance before it can make a decision on the school officials’ $34 million extension of credit request.
Superintendent Jerry North said on Sept. 15 that school officials are not altering their plans for a Dec. 12 referendum, despite the LFB’s delay in making a decision.
"The school district is planning to go forward with the school referendum and set the dates for meetings and tours with parents in place," he said, adding that it is also gathering contact information for parents and those concerned, so that they can mail them additional referendum details.
The school district’s original application for an extension of credit for $14 million had to be modified to $34 million last month after municipal officials introduced the township $20 million redevelopment bond ordinance on Aug. 7. As a result of the bond ordinance, the $20 million the school was hoping to borrow from the township’s borrowing capacity, estimated by the town’s equalized property values, was eliminated as a fund source.
The school district can borrow up to 4.5 percent of the town’s borrowing capacity, while the town can borrow 3.5 percent, according to state laws. The Plumsted school district, in past referendums, used up all of its borrowing capacity and was expecting to use some of the town’s. Therefore, the school district’s $37.6 million expansion referendum, which had been originally scheduled for Sept. 26, was moved to Dec. 12.
Mayor Ron Dancer said on Sept. 15 that he had spoken with LFB executive secretary Patricia McNamara, who indicated that the board would like to have someone from the township present at its next meeting.
"I told her that the township would have a representative to be available at the next meeting," the mayor said, adding that although it has not been decided who will attend, it will most likely be an attorney.
When asked why the Township Committee did not send a representative to the LFB’s Sept. 13 meeting, Mayor Dancer said the LFB simply had not asked to see one. Mr. North had said earlier prior to the meeting that the LFB had requested additional information on the bond ordinance, and if possible, a representative.
Tony O’Donnell, a resident who attended the LFB meeting, said he was surprised the board postponed making a decision.
"I expected them to vote on it," he said. "I’m glad that the LFB did not make a decision. They want everyone there so they can ask questions."
Mr. O’Donnell said he thinks school officials will eventually get approval for the credit, but in the end, it will be the voters who will decide whether the district needs to expand the buildings.
"I think it’s really dangerous for us to get into this amount of debt," he said.
Mr. O’Donnell said he spoke at the board meeting and raised questions about whether the town can afford the referendum, what scope of the referendum is, if the town could live with something scaled down, and also whether the demographer’s report estimated enrollment growth projections is credible. He said school officials would not be able to borrow for another 20 years if the extension of credit is granted, and added that if the referendum does pass, school expansions should be made to last for up to 20 years.
The proposed school expansion would include additions and renovations to the primary, middle and high schools, a connector addition between the high and middle schools, with a new 350-seat cafeteria and 800-seat auditorium, an additional 400 parking spaces and a new maintenance building.
The bond ordinance for town redevelopment includes construction of a 509-unit senior citizen retirement community on 150 acres, subject to Planning Board approval, and the construction of a sewer treatment plant that will serve downtown New Egypt, the business center and some of the surrounding areas. The schools are not near the downtown area.

