HILLSBOROUGH: Township briefs

By Audrey Levine, Staff Writer
Pension deferral called a ‘Ponzi scheme’
   Branding it Trenton’s own “ponzi scheme,” the Township Committee unanimously approved a resolution Tuesday to not join the state’s pension deferral plan, and to provide full pension payments by the April 30 deadline.
   ”This so-called property tax relief is no relief at all,” Mayor Frank DelCore said. “It would help if Trenton took action instead and lowered the costs of pensions. But this is not fiscally responsible, (and) just adds to obligations in the future.”
   The plan allows municipalities to pay half their pension costs this year, then pay the remaining half, plus interest that begins accumulating this year, over a 15-year period beginning in April 2012.
   In total, Hillsborough is required to pay $1,209,662 for the Police and Fire Retirement System (PFRS), and $482,226 for the Public Employees Retirement System (PERS), equaling $1,691,888. If the township utilized the deferral plan, it would pay $795,399 this year, but can expect to accrue about $800,000 at an 8.75 percent interest rate.
   This is in addition to the $795,399 deferred from this year’s payment.
   ”This plan has been very suspect from the beginning,” Committeeman Carl Suraci said. “The upfront payment (at the) 8.75 percent interest rate over 15 years is more than double what the actual loan is.”
   In addition, according to Committeewoman Gloria McCauley, the interest rate could increase over the years, requiring the township to pay more money than it had initially anticipated.
Fireworks contract approved
   In preparation for the annual July 4 celebration, the Township Committee unanimously approved a resolution to authorize a contract with Garden State Fireworks for the Independence Day Celebration fireworks display.
   The contract is for an amount not to exceed $12,500. Garden State Fireworks provided the same service in 2008.
   According to the resolution, the celebration will be held on June 27, with a rain date of June 28.
   ”There is a cost savings to not do the celebration on July 4,” Mayor Frank DelCore said. “And it leaves people free on July 4 weekend. This has been a great success in the past.”
Landscaping firms to maintain medians
   To continue maintaining the medians throughout Hillsborough, the Township Committee unanimously approved a resolution to enter into concession agreements for local median maintenance with Schultz Landscaping, LLC.
   This service is provided at no cost to the township, in exchange for the company being able to place a sign on the median saying who maintains it.
   The contract allows the landscaping company to mow weekly at minimum, with additional times added during the warmer summer months. Grass length must be maintained at no less than three inches.
   ”All the medians are now maintained by local companies,” Mayor Frank DelCore said.
Contract for brush removal OK’d
   The Township Committee unanimously approved a resolution to authorize a contract with Shane Doyle Farms LLC for an amount not to exceed $9,535 for brush management services on properties on Montgomery and Wertsville roads.
   According to the resolution, the township will only be required to pay $2,383.75, or 25 percent, of the total contract, because the remaining 75 percent will be funded by a federal Wildlife Habitat Incentives Program grant.
Depot committee named
   With the township and county having finally taken control of the General Services Administration Belle Mead Depot, the Township Committee unanimously appointed Deputy Mayor Bob Wagner, Committeeman Anthony Ferrera and Township Clerk Kevin Davis to serve on the Belle Mead GSA Depot Joint Administrative Committee.
   This newly formed committee will manage the environmental remediation of the property, as well as the parks and recreation development of the 369 acres.
   The Somerset County Freeholders have appointed Freeholder Director Rick Fontana, Deputy Director Jack Ciattarelli and Park Commission Director Raymond Brown as the representatives from the county.
   ”The preservation for development is an initial step,” Deputy Mayor Wagner said. “Now we move toward the cleanup.”
   The ownership of the property was transferred from the federal government to the township and committee in early April, with the funds being supplied up front by the Somerset County Improvement Authority. The township will pay its share once the land has been subdivided for parks and recreation, and research and development.
   According to Mayor Frank DelCore, the money has been split into two escrow funds to cover the cleanup, with $11.827 million in one fund, and $3.908 in the other.
   The next step, Mayor DelCore said, is to develop a Remedial Action Workplan for the cleanup. He said it should be ready to be sent to the New Jersey Department of Environmental Protection (NJDEP) in the fall.
   ”When that is approved, we can move forward with the cleanup,” he said. “We will also be soliciting public input in the coming months for creating parks and recreation on the land.”