How Marlboro's debt is being used as a flashpoint this election

MARLBORO – The township's debt is being used as an election flashpoint with three seats on the ballot.

Republicans running for the open township mayorship and two council seats claim the township is mired in $102 million in debt.

All municipalities have debt from borrowing money for projects such as infrastructure improvements and New Jersey allows municipalities to borrow up to 3.5% of the total assessed values of taxable properties in its boundaries. At its highest end, Marlboro could borrow $307 million, according to the township’s annual 2022 independent audit that was completed by the accounting firm Nisivoccia and available on the township's website.

But the township is actually borrowing closer to 0.8% of its total assessed value of taxable properties or $75 million, township budget documents show.

Municipalities are required to budget a list of expenditures every year ahead of time. The $102 million cited by the Republican slate is the authorized debt that was approved by the township council, which has a three-seat Republican majority.

In an August 17 council meeting, independent auditor Valerie Dolan with Nisivoccia was invited by Republican Councilwoman Antoinette DiNuzzo to present the findings of the independent audit.

“I know this hasn’t been done before,” DiNuzzo said. “But I felt it was important to do it because there’s so much misinformation going on around. I mean we hear it all the time, you know. Oh, we’re this much in debt. Heavens, the sky is falling.”

Dolan said, the township is "right in line with our large municipalities."

"I mean, I do have some towns that are at that 1-1.5% of their allowable (3.5%)," she said. "You're not even breaching, you're stuck at three-quarters of that percent."

Dolan said the taxpayer's obligation is $47 million. The water utility and recreation and swim utility debt is paid by the users of those services.

Mayor Jon Hornik said the township’s actual debt is lower than $102 million because projects that were planned for get cancelled and township priorities change.

“So while the governing body of the township authorizes the township to issue bonds up to $102 million, we haven’t done it,” Hornik said.

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Candidates on the Republican ticket wrote that they plan on leading the township, “out of its present challenges and financial burdens into a future marked by transparency, fiscal integrity, and forward momentum.”

Renzo Kolenovic, chairman of the Marlboro Republican Party and owner of the restaurant Renzo’s Marlboro Pizzeria, did not respond to questions about the township’s debt including what the slate believes would be a reasonable amount of debt or what initiatives they would like to see put in place.

According to the independent accounting firm Nisivoccia, the $75 million is a combination of the township’s general obligation bonds and notes, the recreation and swim utility’s bonds and the water utility’s bonds, loans and notes.

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Hornik pointed to the ratings of two credit agencies as signs that the township has assembled its finances “completely correct.”

The township has received a AAA rating from S&P Global Ratings (S&P) in 2017 and Moody’s Investors Service in 2021. Having the highest rating allows the township to borrow at the lowest rates.

Hornik said only six municipalities out of 566 in New Jersey have AAA ratings from both agencies. The municipalities include Bernardsville, Princeton, New Providence, Summit and Warren.

“You can’t get (AAA ratings) if you have too much debt. None of my surrounding neighbors in terms of towns have it,” Hornik said.

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The candidates

On the Democratic ticket, Hornik, a four-term incumbent is running with current councilman Michael Scalea, who has served on the council for nearly a decade, and Iqleen Virdi, who serves on the township’s Ethics Board.

Hornik is a partner at the law firm LaRocca Hornik Rosen & Greenberg LLP. Scalea works on the executive board of the consulting company Canopy Life Sciences. Scalea was appointed in 2014 to the council after former councilman Frank LaRocca became a judge. He later won two subsequent elections. And Iqleen Virdi is the CEO of KIV Investments Group of Companies.

Councilwoman Randi Marder, who has served for 16 years is not running for reelection.

“I would have loved for her to run again. She has served her hometown admirably and was ready to move on from public service," Hornik said. "We did an extensive search to try and find someone to fill her shoes. ... I think we came as close as we possibly can in Iqleen Virdi. She is an accomplished businesswoman. She has both a finance and technology background and currently a CEO of a national tequila company.”

The Republican challengers did not respond to a list of emailed questions. The team includes Feiby Dawod, a risk and operations manager at the investment firm SkyView, for mayor, Kolenovic and John Russotto, a chief technology officer with the HR company Winston, for council.

Hornik wrote in an email that his team's top priority is to keep residents safe. He points to his initiative to find trespassers for every attempt to steal a car for bringing down vehicle thefts. He said since July, the township has not had any vehicle thefts.

He wrote that he hopes to continue managing the township's finances in a fiscally responsible way and maintain its AAA credit ratings.

He wrote, "This year we had a 0% municipal tax increase with only a 1.8% average increase over our tenure."

Hornik said in his tenure the township has worked to expand new and affordable programs for its senior citizens such as exercise and social groups. During extreme weather, Marlboro officers and volunteers are instructed to check on the township's senior communities by going door-to-door. And he said, he was invited to speak in favor of legislation that reduces property taxes by 50% for senior citizens at the New Jersey State Assembly.

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He said his team's priority, if elected, would include building upon current priorities such as Marlboro's infrastructure and open space.

"Last year, we announced the largest road improvement investment of $35 million over seven years. The town's AAA credit rating will allow the upgrade of roads, drainage, safety, and the walkability of our community and a lower cost to taxpayers. We have paved 47% of town with the other 53% to be completed in our 35 million plan over the next 7 years," Hornik wrote.

He pointed to the 310 acres of land he has worked to preserve from development, which includes the 53 acres at the intersection of Route 79 and 520 that is now the Marlboro Farmers' Market. He said this week, the township is adding an additional 15 acres in the Beacon Hill section of Marlboro in a joint state, county and township project to its open space inventory.

He added that, "We take immense pride that people of different religious, ethnic, and cultural backgrounds chose Marlboro as a place to raise their families." He said the township has worked to make Marlboro "a place that celebrates our diversity."

Olivia Liu is a reporter covering transportation, Red Bank and western Monmouth County. She can be reached at oliu@gannett.com.

This article originally appeared on Asbury Park Press: Marlboro politicians squabble over township debt and how much there is