One of the more interesting pieces of information to come out of last Monday nights Middletown Township Committee meeting was the fact that the Middletown can’t pay its bills.
Resolution No.09-263 which passed unanimously, authorized the borrowing of approx. $1.5 million to pay the interest on a $10 million Tax Anticipation Note.
This emergency appropriation needed to be made because funds were not made available to pay the interest on the note in the 2009 township budget that was passed in August.
This just goes to show you what another fine mess the Middletown GOP has gotten us into. The GOP majority members couldn’t negotiate in good faith with Democratic members on the committee to come up with a budget that was responsible and would not have included a 9 % tax increase, instead they turned over the budget to the State and succumbed to pressure to put off pension payments and reduce surpluses to get an approval for a 5.2% increase while in the process they forgot that appropriate money for the interest on the $10 million Tax Anticipation Note.
I bring this up because it Looks like the Feds are going to have problems servicing debt payments on their bills soon.
Below is the resolution:
WHEREAS, an emergency has arisen with respect to the interest due on the $10,000,000
Tax Anticipation Note authorized pursuant to Resolution 09-205 adopted on August 3, 2009, and no adequate provision was made in the 2009 budget for the aforesaid purpose, and NJS 40A:4-46 provides for the creation on an emergency appropriation for the purpose mentioned above, and
WHEREAS, the total amount of the emergency appropriations created, including the appropriation to be created by this resolution is $51,334.00 and three (3) percent of the total operating appropriations in the budget for 2009 is $1,478,267.00 and
WHEREAS, the foregoing appropriation together with prior appropriations does not exceed
three (3) percent of the total operating appropriations (including utility operation appropriations) in the budget for 2009,
NOW, THEREFORE, BE IT RESOLVED, (by not less than 2/3 of all governing body
members affirmatively concurring) that in accordance with NJS 40A:4-48:
1. An emergency appropriation is here by made for: 9-01-45-935-200-200 – Debt Service – Interest on Tax Anticipation Note
2. That said emergency appropriation shall be provided for in full in the 2009 budget,
and is requested to be excluded from CAPS, pursuant to NJS 40A:4-53.3c(1)
3. That two (2) certified copies of this resolution be filed with the Director of the Division of Local Government Services