In West Cape May: Borough/Fire Company Relationship Remains Icy

WEST CAPE MAY – The relationship between borough commission and West Cape May Volunteer Fire Company remains icy following a Nov. 11 meeting in which the Deputy Fire Chief Steve Nelson walked out in disgust.
Nelson, Fire Chief Chuck McPherson and a number of fire company board members and firefighters attended the Nov. 11 borough commission meeting. Nelson said the borough at its Oct. 28 meeting requested three items from the fire company:
• Confirmation of the fire company’s corporate status.
• Confirmation of the fire company’s charitable organization status.
• Confirmation a process is in place to complete filings to the state on time in the future.
Nelson said the fire company had accomplished all three items. He said the fire company’s status was listed on Web sites of the state Division of Consumer Affairs and Division of Taxation. He said the fire company’s bylaws now stated part of the duties of its auditing committee was to verify that annual financial filings are submitted to the state.
“I believe I have accomplished all the things that were requested from us and we are ready to move forward with the recognition,” said Nelson.
Negotiations have been continuing for three years between the borough and fire company to grant the fire company official status. For one year, borough commission has been trying to pass an ordinance to recognize the West Cape May Volunteer Fire Company as the official fire company of West Cape May.
West Cape May Volunteer Fire Company has been in operation more than 88 years but the borough never officially recognized them as its official fire company.
Mayor Pamela Kaithern said it was the first time she saw the new documents from the fire company and she wanted time to read them. She said questions have been raised about information required from the state about the fire company’s 2006 and 2007 federal tax filings.
Nelson said the Division of Consumer Affairs wanted a different breakdown of the fire company’s income. He said the fire company had submitted a 990EZ form, which did not offer that detail. He said that information has been supplied to the state.
Kaithern asked if the 990EZ forms submitted to the state recognized that the fire company thought it had 501c3 status but did not. That status allows donors to deduct donations to the fire company on their income tax forms.
Nelson said he did not ask the state that question. He said the fire company has filed for 501c3 status. The mayor asked if copies of the fire company’s 2006 and 2007 990EZ forms were available to borough commission. Nelson said the borough could request copies from the state.
Kaithern said she wanted copies of the forms from the fire company. Borough Solicitor Frank Corrado said the fire company was obligated to show the forms to the borough. He asked what was the status of their 501c3 application.
Nelson said the fire company’s accountant was working on the application for that status. He asked if Kaithern wanted to see the 2006 and 2007 990EZ forms before borough commission would pass an ordinance to officially recognize the group as the borough’s fire company.
Kaithern said if everything were in order, the ordinance to recognize the fire company would be on the agenda for its Dec. 9 meeting. Geyer said two state agencies have given the borough certification that the fire company has met the requirements for their corporate filing and for their charitable organization status and “provided a statement of how they are going to ensure that happens.”
Borough Commissioner Peter Burke said the fire company needed to show they had a process in place to provide information to the public on their tax and charitable status. Nelson said the public could pay $5 and request information from the state.
Burke said it is a requirement for the fire company to provide a copy of its most recent 990EZ form when requested from the public. Corrado said the fire company needed to ensure it submitted filings to the state on time but also provided public disclosure. At that point in the meeting, Nelson walked out.
Corrado said he would obtain the state statute and go over it with either McPherson or Nelson to make sure the borough is satisfied the fire company can do what it is required by the state. Corrado said he wanted to make sure the public could obtain financial information from the fire company in a timely manner.
He said he did not see a reason why the fire company ordinance could not be on the agenda Dec. 9.
Geyer offered the results of a safety report for the state. He said the fire company’s goal was to perform ongoing inspection of all fire fighting apparatus. He said two of the fire company’s pumper trucks have been tested and certified.
Geyer said their ladder truck was UL tested, repairs to the hydraulic system were completed, additional tests were made and additional repairs are needed. He said repairs to the truck’s aerial platform have been deferred due to budgetary problems.
Geyer said the borough “does not have any more money.” He said during the last two months of the year, commission may transfer money between budget line items to fulfill the borough’s financial needs.
He said the line item of aid to the volunteer fire company was over budget due to major equipment repairs and because the fire company’s cell phone expenses were posted to the wrong account for most of 2009. He said those expenses will be transferred to the aid to the fire company line item making the shortfall even greater.
Final repairs to the aerial ladder truck and replacement of emergency first aid equipment, such as a defibrillator battery, total about $3,200, said Geyer. He said other borough departments had financial needs.
Kaithern said the fire company had also generated an expense of nearly $3,000 for dress uniforms. She suggested the fire company allocate that to its own expense.
Ramsey said a price estimate to repair the aerial ladder truck was good until the end of December when it would increase about $375 in 2010.
Burke said borough departments do not have other sources of income while the volunteer fire company raises funds from the public through solicitations which mention the money is used to maintain service, buy new equipment and train its members. He said the fire company’s materials mention donations to the fire company help keep taxes down.
If there is an emergency need and the fire company has its own money, based on what they have stated to the public, some repairs could be handled through their own finances, said Burke, “Because we may not have the money.” He suggested the expense of dress uniforms could be transferred to the fire company’s budget.
“Perhaps we should develop a list of things the borough is willing to pay for and the things we expect the fire company to pay for so we can avoid this confusion in the future,” said Geyer.
During public comment, resident Kathy Gallagher said it blew her mind that recognizing the volunteer fire company as the official fire company of West Cape May was “dragging out forever.”
Burke said all or most of the money remaining for all departments for the rest of 2009 was accounted for already. He said the borough recently paid half the cost of work done to the aerial ladder truck.
A request came in for additional repairs to the truck for $2,500, nearly the same cost as the first set of repairs, said Burke. That cost would have to be taken from another department where the funds are needed, he said.
“The borough runs on a very tight budget,” said Burke.
He said he did not know how the fire company spent its money because it did not share that information with the borough. Kaithern said $2,500 may seem like a small sum but to the borough it was “a huge amount.”
Burke said the borough has not been dragging its feet on the fire company issue. He said if the borough had not gone through this process with the fire company, its lack of 501c3 status would not have been made public.
He said residents have donated money to the fire company and written off those donations on their income taxes. Burke questioned what would happen if those donors receive a tax audit from the IRS.
Geyer said taking the total amount of funding the borough provides to the fire company, the property owners here pay $88.12 per year.