PARSIPPANY — During the Township Council agenda meeting of Tuesday, October 3, Township Attorney John Inglesino advised the council they were going into closed session to discuss possible litigation with Montville.
Parsippany Focus issued a series of Open Public Records Act (OPRA) requests and received a letter dated September 27, 2017 to Mayor James Barberio from Montville Mayor James Sandham.
Montville Township is seeking $1M dollars from Parsippany, as a one-time credit to offset over the next two years against charges of the Sewer Treatment Plant Agreement to Montville from Parsippany.
“Over the past six weeks our office has made inquiries for certain financial and budget information which relates to the fact that over the last seven years more than $8 million in fund balance from the Parsippany Sewer Utility has been anticipated as revenue as part of the Parsippany municipal budget. Notwithstanding numerous phone calls, requests and delays, as of this date we have not received the documentation from the Township of Parsippany relating to our request,” said James Sandham.
In balancing the 2017 budget, Mayor James Barberio transferred $3.2 Million from the Parsippany Utilities to the Parsippany Municipal Budget. This created a zero percent municipal tax increase. ($700,000 was transferred from Parsippany Water Utility Operating Account and $2.5 Million from Parsippany Sewer Utility Operating Account.)
The same tactic was used in the 2013 Election, when sewer surplus of $550,000 was used to create a 0% budget increase.
Sandham continued “As a long-time user of and contributor to the system, you are aware that the Township of Montville accounts for approximately 20% of the financial revenues for the Parsippany Sewer Utility. Certainly, the governing body was recently made aware that significant funds and transfers have been made from this Utility in addition to the enormous surplus that exists in the facility as well.”
“$8.5 million of fund balance that has been transferred (to the municipal budget) times 11.7% (Montville’ s share of rents) equals $1 million.” the letter stated.
In addition the letter states, “due to the time that has elapsed and the priority of this matter to the Township of Montville, we are making this proposal which will be withdrawn by October 20, 2017. After that date, we will direct the Township Attorney to immediately commence the filing of suit in Superior Court in order to address this issue.”
They are also requesting for 2017 and beyond we will require a detailed analysis of costs and expenses charged to the Sewer Utility as well as a detailed calculation of the allocation methodology amongst the several municipal users.
Mayor James Barberio refused to comment on this story.
Click here to read a copy of Mayor James Sandham’s letter dated September 27, 2017.
Click here to read an email sent to Mayor James Barberio (second request) asking for comment to the story. An additional request was sent on Friday, October 13 to Mayor James Barberio, Council President Louis Valori, Council Vice President Robert Peluso, Councilman Michael dePierro, Councilman Paul Carifi, Jr., and Loretta Gragnani, which also went unanswered.
Editors Note: After the story was posted we did receive an email from Mayor James Barberio stating “Before you post the story the Township Attorney will be reporting on this issue.” Parsippany Focus will update the story as soon as we receive a response from Township Attorney John Inglesino.
