Borough to implement new steps in billing township

By Lauren Otis, Staff Writer
   The Princeton Borough Council has unanimously passed a resolution endorsing “capital billing and payment practice” in its financial dealings with Princeton Township, including expecting payment from the township of borough invoices within 90 days, with interest on the outstanding amount accruing if payment isn’t received by that point.
   ”I think this is a useful first step,” said Councilman Roger Martindell at the council meeting on Tuesday. Mr. Martindell raised the issue of endorsing formal billing practices with the township at the council’s last meeting. With so many outstanding payments owed by the township to the borough, Mr. Martindell called a continuation of an informal billing practice with the township “irresponsible” at that Sept. 23 meeting.
   Noting that the billing resolution was non-binding on the township, Mr. Martindell urged that township officials be approached and the idea of engaging in an interlocal agreement on billing be broached with them which would formalize the practices contained in the resolution.
   ”We need to make it very clear to them that we are talking about moneys going forward not moneys going backward,” Mr. Martindell said.
   Mr. Martindell and Councilman Andrew Koontz both expressed satisfaction with the billing resolution going forward, but also voiced their concern over the township’s continuing failure to pay for its share of past joint capital projects.
   According to a borough document distributed at the council meeting, at present the borough is owed over $3.8 million by the township. The township owes the borough $368,456.25 for past joint Sewer Operating Committee projects; $1,072,635.60 for 2006 capital projects (which the borough billed the township for in December 2007); $1,659,101.84 for 2007 capital projects (billed by the borough in September 2008); and $726,811.83 for 2008 capital projects, according to the document.
   ”I have a significant concern about that money from 2006, we haven’t addressed that yet,” said Mr. Koontz, noting it had been almost a year since the borough had billed the township for the $1,072,635.60 amount.
   Mr. Martindell said the $1 million the borough is owed by the township through 2006 “has cost us, at 4 percent a year, and it has been 2½ years since we laid out the money, about $100,000, we laid that out for the township’s benefit.”
   The billing resolution calls for the borough to maintain and regularly update joint purchase orders and invoices; around the 10th of every month submit invoices to the township; expect payment within 90 days and if payment is not received within 90 days “interest will accrue at the average rate of the bonds that were issued to finance the project.”
   The resolution passed Borough Council unanimously in a voice vote. Mayor Mildred Trotman not present at the meeting.