A dispute over $1.7 million remains unresolved
By Nick Norlen
Staff Writer
Princeton Township has issued its formal response to the borough’s request that it provide documentation on its funding of the North Ridge sewer pumping station.
But Borough Councilman David Goldfarb said the response still doesn’t address his claim that the township was never entitled to the approximately $1.7 million in connection fees that have been used to fund the project.
In August, Mr. Goldfarb alleged that the township retained sewer connection revenues to pay for its Mount Lucas Road pump station, rather than contributing them to the joint sewer rehabilitation trust fund, which covers sewer repairs in both municipalities.
Borough Attorney Michael Herbert then sent a letter to the township requesting documentation on the situation.
Last week’s response from the township is similar to previous statements by Township Administrator Jim Pascale — that the pump station was financed by the township alone and that connection fees will be contributed to the joint fund when both the capital and interest from the construction are recouped.
According to the document, the pump station, which cost $3,015,000, was financed by funds from Montgomery Township, which had bought sewer capacity from the township, and from connection fees to be collected from system users.
The document also states that the connection fees won’t be contributed to the Princeton Sewer Operating Committee “until the Township recoups all of its capital costs, including interest thereon.”
”As of December 31, 2006 the Township still needed to recoup $101,901.98 towards the capital cost of the project,” the document says.
Saying that he is “puzzled by Mr. Goldfarb’s inquiry,” Mr. Pascale called the issue an “open and shut” case Friday.
”We feel very confident and comfortable with our position,” he said. “We are hoping that with this submission from our attorney, at the request of the borough attorney … will finally put to rest this matter.”
But Mr. Goldfarb said the response is nothing new.
”It’s a restatement of facts that everybody accepts as being true,” he said. “The question remains as to why the township felt it was entitled to divert funds from the North Ridge that they would have otherwise been paying into the sewer rehabilitation trust fund.”
Mr. Goldfarb said the borough is continuing to look for evidence of an agreement — or lack thereof — from the borough for the township to retain the connection fees.
The next step is for the two parties to come together and find an agreement, he said.
”I honestly believe that this was not done with the intention of cheating the borough. I believe that they didn’t realize the impact of their decision at the time,” he said. “But that doesn’t excuse it.”
However, he said he doesn’t expect it to be easy.
”It’s difficult to deal with the township on the most mundane of issues, so I expect it will be difficult,” he said.
Although Mr. Goldfarb has raised the issue a number of times since the pump station was built, the most recent round of comments started when the Borough Council introduced a $500,000 bond ordinance to fund the sewer rehabilitation trust fund.
The council adopted that bond ordinance Tuesday.