By: Vic Monaco, Matt Chiappardi
HIGHTSTOWN The East Windsor Regional School District says the two towns it serves owe it thousands of dollars to cover a large portion of an approximate $217,000 deficit in running a fueling station used by all three entities.
Superintendent Ron Bolandi acknowledges the issue resulted from a district billing failure. And all three parties expressed a desire this week to resolve the issue.
But East Windsor Mayor Janice Mironov said Wednesday that she was surprised when told by the Herald of the total deficit figure claimed by the district.
"No one has publicly or privately suggested that they could document that number," she said.
On Monday’s school board agenda was a recommendation to deny the township and borough access to the facility on Mercer Street. The recommendation from Business Administrator Kurt Stumbaugh claimed the district has been trying for more than six months to recoup costs.
Mr. Bolandi said Wednesday that the item was removed from the agenda because the board’s attorney said termination of the agreement is illegal.
"All parties have to agree to end the agreement," he said.
"It was put on the agenda by Kurt and he was in error."
Mr. Bolandi said that under a 20-year agreement, the facility is operated by the district but jointly owned by the three entities. When the pact expires in five years, he said, the district becomes the owner.
The superintendent said at issue for a couple of years is an auditor-certified deficit of about $217,000 in running the facility over about a 10-year period. He said the agreement calls for the three entities to share in making up that deficit, based on percentage of use.
Those percentages over the 10-year period, he said, are about 40 percent for the district and township each and about 20 percent for the borough.
That would mean the district would be seeking about $87,000 from the township and about $43,000 from the borough.
"The former business administrator did not bill the township and the borough correctly, and in some years didn’t bill them at all," Mr. Bolandi said. "The district has assumed that liability totally."
"The disagreement on how much (each owes) is perfectly legitimate and we’re hoping we can reach an amenable solution," he added.
Mayor Mironov, while saying "the parties are discussing and identifying a way to equitably resolve the situation," stressed that the township is not to blame.
"This discussion reflects a billing and record-keeping problem of the district and not East Windsor’s failure to pay its bills," she said. "Hopefully the school district will review and repair its procedures."
Hightstown Business Administrator Candace Gallagher said the borough’s chief financial officer is reviewing the matter.
"We are as anxious to resolve this as anybody," she said Wednesday while declining to comment further.
Borough Mayor Bob Patten could not be reached for comment.
