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Committee approves cancellation of old capital ordinances after finance explanation, member questions oversight

Hillsborough Township Committee · December 10, 2024
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Summary

Officials approved cancelling roughly $477,000 in old capital-ordinance balances to release funds for unfunded capital projects. Committeewoman Hand pressed for why amounts dating to 2007–2019 were only now being closed; finance staff said these are leftover encumbrances, not tax overcollections.

The Hillsborough Township Committee voted Dec. 10 to cancel several long‑outstanding capital ordinances and move most unused balances into the township’s capital fund balance to offset other unfunded projects.

Finance staff identified approximately $477,141.90 in capital-ordinance balances that can no longer be used under their original descriptions and recommended canceling nine old ordinances. The recommendation was presented as Consent Agenda item 1 and included in a consent package (items 1–34) that the committee approved by roll call.

Concern from the dais: Committeewoman Hand asked why funds dating back to 2007, 2009 and later were only being addressed now, asking, “My question is, these date all the way back to 02/2007. So why is this coming to light now?” Finance staff (Mrs. Noon and Alicia) and other committee members explained the amounts represent encumbered or leftover capital balances from projects that were not completed or that came in under budget and therefore remained on the capital ledger; staff said the amounts are not newly collected tax revenue.

A committee member suggested reviewing external audit oversight after the age of some encumbrances was raised; the mayor said the team would consider that suggestion and noted the decision to consolidate and cancel long-dormant capital ordinances would allow the township to repurpose funds for current capital needs.

Why it matters: canceling unused capital ordinances frees restricted funds for current and near-term infrastructure projects. Committee members pressed for clearer prior notice and documentation; staff said some members received limited premeeting information and that the finance team will continue to review details.

Next steps: staff will move forward with the ledger adjustments, and the committee discussed evaluating audit arrangements and communication of financial packages to members ahead of meetings.