Bond Ordinance for New Pool Passed in Cape May

CAPE MAY – Cape May City Council considered and approved the ordinance authorizing $1 million for a new pool and associated facilities at Cape May Elementary School.
The pool is used to teach city children, and those from the Coast Guard base, how to swim. As well as being a part of the school’s program; however, the pool also sees significant use from the community, especially from seniors. Discussion of this approaching bond issue has been on the agenda of council for over a month.
A detailed presentation of the current plan for the work was given by John Collins, school board secretary, including work on the pool itself, the piping system, the decking, and the locker rooms. Collins also spoke to the concern that the cost of the work could, under certain scenarios, run to more than the $1 million dollars in the bond issue. He described contingency planning that would segment certain portions of the work to allow decreases in scope if that became necessary.
As procedure requires the council opened the issue to public comment before voting. Jerry Gaffney, a past member of council and mayor, asked for an explanation of why the city was getting involved in what should more properly be a school board issue. Mayor Edward Mahaney Jr. responded with three points.
The state budget shortfall has led Gov. Chris Christie to reduce the reserves held by schools across the state. This move hurt the ability of the school system to pay for these improvements. With these reductions in reserves, “they can’t afford it,” noted Mahaney.
Second, the school system, like those across the state, is not experienced at bond issues. It has no past history and doesn’t have a bond rating. Putting in place the things they would need to successfully issue bonds for this purpose would add at least a year to the project and probably cost money that would not otherwise need to be spent. One example of a new expense would be the need to pay for the bond rating service.
The mayor’s third point was that the city’s high rating and experience could mean as much as a 3.5 percent difference in the rate that would have to be paid for the bonds. Wichterman again pointed out that the school system would repay the financing over time.
The hope is that funding can be completed in time for the work to begin in March 2015. Since the work is expected to take three months, that would allow the pool to be reopened in time for the summer in June.
Other Improvements
In a related issue, Mahaney announced that the city received a $100,000 grant for a new generator at the school. The generator will be used to improve the site as an emergency shelter for city residents in instances where the emergency does not require full evacuation of the area.
Mahaney also noted that the state Department of Transportation would begin a dredging program for the harbor area and associated waterways in October with the goal of having the work completed by the start of the boating season next summer. He noted the benefits the effort would have for the fishing fleets as well as the recreational boaters.
School Funding Issue Update
Deputy Mayor Jack Wichterman provided two updates on the ongoing process challenging the current funding formula for the Lower Cape May Regional school district. As earlier reported, the city gained approval for a referendum on the funding formula that will allow voters in the three municipalities of Cape May City, Lower Township and West Cape May to vote on the issue of Cape May withdrawing from the regional system. That is one step in a long and involved process by council to get an adjustment in the funding formula which results in what the council sees as a disproportionate burden placed on the city taxpayers.
The referendum has now been set for Dec. 9.
An ongoing concern is responsibility to pay for the special election, which is estimated to cost approximately $40,000. The regional school board looks to Cape May City to pay the full costs since it was action by the city that gave rise to the need for the referendum.
Wichterman cited the tradition in such cases in the state that places the responsibility for the expense with the school system. A conference call has been set for Sept. 10 in hopes that the issue can be resolved without asking a court to intervene.
Public Comment
Public comment brought Gaffney to the lectern. He noted that the term of this council is up at the close of the year and that three seats on the five-member council will change hands since current members are not seeking reelection.
Given there will potentially be a new majority in council, Gaffney suggested that the council seek to pull back from the scheduled referendum and leave the matter in the hands of the new council next year.
This elicited strong reaction from Wichterman who cited the three-year effort by the current council to get a change in the formula.
Councilman William Murray pointed out that the ultimate decision would be left for the new council. “There is no action left that this council will take,” Murray said.
The referendum is scheduled and the only remaining action, should the city lose the referendum as expected, is going to court to have the current formula overturned.
Murray pointed out that any decision to pursue the matter in the courts would be made by the new council.
To contact Vince Conti, email vconti@cmcherald.com.