Madison Council OKs Borrowing $4.1M for Rec Center

The Madison Borough Council has approved borrowing more than $4.1 million for the Madison Recreation Center land and installation of sports fields there.

The borough had paid for part of the costs with short-term loans. The bond resolutions approved Monday are part of a plan to pay off the debt over the next two decades.

Madison plans to make the debt payments with open space taxes, contributions from the Madison Athletic Foundation, and user fees.

The council approved two resolutions Monday: one to borrow $2,888,000 for the land acquisition, to be paid off over 20 years. That was approved unanimously.

The second resolution was to borrow $1,263,000 for the installation of the fields, to be paid off over 15 years. That was approved with a 4-2 vote.

Council members Jeannie Tsukamoto and Robert Catalanello cast the "no" votes, saying Madison could pay for the fields installation with available funds. Other council members said available funds should be used for other capital projects, such as roads, pump stations and possibly for work at the sewage treatment plan Madison uses, and borrowing now could help the borough get favorable interest rates.

The measures needed four votes to pass. Council President Carmela Vitale and Councilman Ben Wolkowitz participated via phone because they were on vacation.

During the meeting, Catalanello suggested Madison could pay for the fields with around $2 million that is in "fund balance." He also said a previous council wanted to use money from the sale of borough property on Central Avenue to pay for artificial turf fields somewhere in Madison.

"If we have the money, why don't we use it?" he said.

Councilman Bob Landrigan said it makes more sense for Madison to cover the MRC debt payments with open space funds and use the available funds for other projects. Catalanello agreed, and said he would drop his suggestion if the governing body agreed to commit the available money for capital projects instead of using it to plug holes in the operating budget.

Tsukamoto said borrowing less "makes good financial sense."

Borough Administrator Ray Codey, Councilman Ben Wolkowitz, and Councilwoman Astri Baillie wondered why Catalanello raised the issue when he did.

Codey said the issue has been discussed for months. Wolkowitz said the timing was "confounding." Baillie said the governing body needs to have a full and honest discussion in a timely fashion and said Catalanello might have been using the meeting as a "political platform for you to start your campaign."

Catalanello said he took exception to that comment, has nothing but the best interests of Madison taxpayers in mind, and, if people think his comments are political, that might be the way they think of things.

Vitale said she is "not in favor of bringing down fund balance at this point, especially since we're thinking about lots of other improvements in other areas as well."

Madison Mayor Bob Conley said if Madison aims to keep its AAA bond rating, it won't use surplus capital funds to plug the operating budget. He said borrowing for the MRC "is a prudent plan" and said other work still could be done there, including adding bleachers.

Codey said Madison is $100 million under its bonding limit set by the state.

The Madison Board of Education is expected to give $1 million toward the Madison Recreation Center, which resulted in the amount to be borrowed for the fields being a million dollars less than a previously discussed amount, officials said.