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Special Joint Meeting

May 16, 2006

6:12 P.M.

A Special Joint Meeting between the Mayor and Town Council and the Board of Education was held in Council Chambers, 402 Kearny Avenue, Kearny, on the evening of the above date.

Mayor Santos called the meeting to order and announced that all requirements under the provisions of the Open Public Meetings Act were in compliance.

ROLL CALL

On roll call, the following members of the Kearny Town Council were present: Councilman Kruznis, Councilwoman Pettigrew, Councilwoman Sherry, Councilwoman Doyle, Councilwoman Eckel, Councilwoman Mc Currie, Councilman Landy, Mayor Santos.

Also present: Mrs. Jill Waller, Assistant Town Clerk, Mr. Joseph D’Arco, Town Business Administrator, Mr. Gregory Costano, Town Attorney, and Mr. Steven Wielkotz, Town Auditor, Ferraioli, Wielkotz, Cerullo & Cuva.

On roll call, the following members of the Kearny Board of Education were present: Mr. Castelli, Mr. Doffont, Mrs. Marks, Mrs. Mc Keown, Mrs. Santos, Mrs. Schalago, Mr. Sgalia, President Mc Donald.

Also present: Mr. Robert P. Mooney, Superintendent of Schools, Dr. Ingrid L. Kiss, Assistant Superintendent of Schools, Mr. Leslie J. Gaulton, Business Administrator/Board Secretary, and Mr. Kenneth J. Lindenfelser, Esq., Board Attorney.

PLEDGE OF ALLEGIANCE

ayor Santos led the assembly in the Pledge of Allegiance to the Flag.

PURPOSE OF THE MEETING

The purpose of the Special Joint Meeting is to continue the discussion of the 2006/2007 defeated school budget.

DISCUSSION

Mr. Gaulton discussed his analysis of the product submitted by Mr. Wielkotz.

TOWN COUNCIL/BOARD OF EDUCATION ENTER CLOSED SESSION

The Town Council and the Board of Education each entered into Closed Session.

COUNCIL & BOARD RETURN TO OPEN SESSION

OBSERVERS

The following observer addressed the Mayor and Council:

Bruce Robertson, Midland Avenue, Kearny

TOWN COUNCIL RE-ENTERS CLOSED SESSION

The Town Council re-entered Closed Session and returned to Open Session at 9:00 P.M.

TOWN OF KEARNY

COUNTY OF HUDSON

2006-(R) 249

RESOLUTION ESTABLISHING THE LOCAL SHARE OF THE GENERAL FUND

OF THE BOARD OF EDUCATION BUDGET FOR THE YEAR 2006-2007

The following resolution was introduced by Mayor Santos, who moved its adoption:

WHEREAS, the Board of Education of the Town of Kearny presented to voters at the annual school election held on April 18, 20096 a question concerning the approval of the local share of the budget for the General Fund in the amount of $42,605,063 for the 2006-2007 school year,

WHEREAS, the voters at said election rejected the budget for the General Fund,

WHEREAS, the Board of Education transmitted its budget documentation for the 2006-2007 school year to the Mayor and Council on April 20, 2006,

WHEREAS, pursuant to N.J.S.A. 18A:22-37, the Mayor and Council are charged with the responsibility of determining: the amount which is necessary to be appropriated for each item in the budget and certifying the tax levy for the local share,

WHEREAS, the Mayor and Council engaged the accounting and auditing firm of Ferraioli, Wielkotz, Cerullo & Cuva, P.A. to review the 2006-2007 school budget and report its findings and make recommendations to the Mayor and Council as to possible areas for reduction of appropriations and other ways in which the local share might be reduced.

WHEREAS, the Mayor and Council thoroughly reviewed the budget and related information presented to it,

WHEREAS, meetings of the Board of Education and of the Mayor and Council were held on May 12, 2006 and May 16, 2006,

NOW THEREFORE BE IT RESOLVED, by the Mayor and Council of the Town of Kearny, Hudson County, New Jersey, that;

1. The local share of the General Fund of the budget of the Town of Kearny Board of Education for the 2006-2007 school year be established at $41,855,063, a reduction of $750,000 from the budget which was rejected by the voters of the Town of Kearny, by reducing the former proposed budget as follows:

Account

Account Description Number Amount Justification

Budgeted Fund Balance-Genl Fund 10-303 $ 250,000 The Board of Education has historically had excess surplus. The current estimate (see attached Schedule 1) reflects $946,942. The School Business Administrator, while he does not agree to our calculation, estimated the excess could be $400,000-$500,000. We believe the $250,000 is prudent and justified. In addition, there is $300,000 of HELP aid funds that is unappropriated in the 2006-07 budget and available to fund any unforeseen expenditures.

Salaries Grades 1-5 11-120-100-101 75,000

Salaries Grades 6-8 11-130-100-101 100,000

Salaries Grades 9-12 11-140-100-101 75,000 The attached schedule (Schedule II) reflects actual calculations agreed to by the Board of Education. The overall salary increase is 4.5%, net of attendance incentives, and including the new positions budgeted. Of the excess, $315,000 is due to breakage from retiring employees and $140,345 is excess appropriations acknowledged by the Board of Education. Of the breakage, $190,000 has been left to be utilized for equivalency payments to teachers who earn additional credits during the year which is the way the Board has always dealt with those payments. In addition, there are funds in the Early Childhood program for salaries which are also budgeted in the General Fund Budget.

Health Benefits 11-000-291-270 200,000 The attached Schedule (Schedule III) represents health benefits-related costs as represented to the Town by the Board of Education. The monthly costs were discussed at the joint meeting and were actually calculated by the Business Administrator. The excess of $600,000 takes into account the $510,000 budgeted in the Early Childhood Budget, which was also budgeted in the General Fund Budget. However, recognizing that this amount is not always utilized in its entirety for health benefits, the Mayor and Council chose to reduce only $200,000 of the excess, thereby leaving the board some flexibility.

Equipment – School Buses 12-000-270-730 50,000 The Town recommended reducing this $65,000 appropriation to $15,000 because the Board purchased a bus and a van in 2005-2006. They also rented a second van to meet their needs. The Town has left sufficient funds to purchase the second van so that the board has the same vehicles in 2006-2007 that they utilized in 2005-2006.

Total Tax Levy Reduction $ 750,000

2. The Municipal Clerk is directed to certify by May 19, 2006, to the Hudson County Board of Taxation, the Hudson County Superintendent of Schools, the Tax Assessor for the Town of Kearny, and the Division of Local Finance of the Department of Community Affairs, State of New Jersey, that the amount necessary to be raised by taxation in the Town of Kearny Board of Education for the General Fund revenue is $41,855,063.

3. This Resolution shall be maintained on file in the office of the Municipal Clerk and that copies of the Resolution shall be forwarded as directed herein.

The following vote was recorded: Councilwoman Sherry, “not voting”, Councilwoman Doyle, “not voting”, Councilwoman Pettigrew, “aye”, Councilman Landy, “aye”, Councilwoman Mc Currie, “aye”, Councilwoman Eckel, “aye”, Councilman Kruznis, “aye”, Mayor Santos, “aye”.

There being six votes in the affirmative and two members “not voting”, the motion was carried.

The following resolution was moved by Mrs. Mc Keown and seconded by Mrs. Schalago:

The Kearny Board of Education hereby resolves to appeal to the Commissioner of Education the decision of the Kearny Town Council regarding budget reductions to the 2006/2007 School Budget.

On roll call, the following vote was recorded: Mr. Castelli, “aye”, Mr. Doffont, “aye”, Mrs. Marks, “aye”, Mrs. Santos, “aye”, Mrs. Schalago, “aye”, Mr. Sgalia, “aye”, Mrs. Mc Keown, “aye”, President Mc Donald, “aye”.

It was moved by Mrs. Mc Keown, seconded by Mr. Sgalia and unanimously carried by acclamation to adjourn the meeting.