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CAPITAL DEBT PLAN GETS INITIAL APPROVAL

$1.6 million will be borrowed for projects, but no budget hit this year

Township Committee members on Tuesday directed Township Administrator Joseph Manning to prepare a bond ordinance to borrow some $1.6 million for capital improvements, a sharp decline from the $4.1 million originally requested when the budget process started.

Overall, some $2.05 million of improvements to the likes of the Maplecrest Park shelter and Memorial Park basketball courts will be done, among others, but with $449,150 in grants, only the $1.6 million need be funded.

With the long-term debt that will incur through the bonding, set for approval March 17, only a $76,415 payment will be due this year, an amount TC members said is already in the capital improvement fund. "So we would be at zero in the capital improvement budget," Manning told the TC.

That is good news as the TC continues to grapple with the budget, which remains at a deficit and has already sparked 17 layoffs and a summer Friday unpaid furlough plan. More budget discussion is set for Saturday morning.

Still, some members, such as TC Member Fred Profeta, wanted to know what the future debt payments on the capital improvements would be. "I would like to know what is the debt service," Profeta said.  "I can't tell you that because we have not borrowed the money," Manning responded. He said such information would be provided before the March 17 meeting and vote on the bond ordinance.

In addition, the bond amount could be reduced further if Maplewood's portion of the federal stimulus package, still unknown, is put toward any of the projects.  "Some of these projects aren't going to go through the capital fund because they are going to go into stimulus," said Vice Mayor Kathleen Leventhal.

We will see.

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