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Borough governments are still mulling an Allenhurst-Loch Arbour merger, and Allenhurst’s commissioners discussed the proposed consolidation at their Dec. 11 meeting.

Loch Arbour has asked to join Allenhurst in order to reduce its school taxes. Loch Arbour currently pays the Ocean Township school district through a formula that takes property taxes into account, while Allenhurst pays lower school taxes due to a per-pupil sending-receiving relationship with Asbury Park schools, with some students attending Red Bank Regional.

But before Allenhurst can move toward consolidation, its commissioners are looking for ways their borough would benefit.

The most recently proposed plan would establish two tax districts, one for the former residents of Allenhurst and one for the former residents of Loch Arbour. The New Jersey Department of Community Affairs [DCA] is currently reviewing that plan.

The separate tax districts would enable the new town to charge slightly higher municipal property taxes in the former Loch Arbour, paying down some of Allenhurst’s debt. The disparity between the two districts’ tax rates would decrease over four or five years until both districts paid the same amount in taxes.

Establishing two districts could also keep Allenhurst off the hook if Ocean Township or its residents take legal action against Loch Arbour due to the merger, Mayor McLaughlin said.

If the DCA accepts this plan, which Mayor McLaughlin described as “a fluid draft,” Allenhurst will submit the plan for cost analysis, and move forward with a final draft of the statute to put to a vote.

“There will be a series of public meetings with our residents, Loch Arbour will have meetings with their residents, then one meeting with residents from both,” Commissioner Chris McLoughlin said. “This doesn’t happen without the vote of the Allenhurst residents.”

The borough could save about $950,000 a year through this statute, Mayor McLaughlin said, and pay off Allenhurst’s debt in four years.

“If they [Loch Arbour] agree with that and want to vote on it, that’s their headache not our headache,” Mayor McLaughlin said.

“If it’s available and we don’t explore it, shame on us,” McLoughlin said.

Reactions at the commissioners’ meeting were mixed.

“We had that big meeting at the firehouse and most of Allenhurst was opposed to it, so why are we talking about it again?” said resident Joan March.

“Right now I’m neutral, I don’t think we have enough information,” said resident Sandra De Murley. “But please keep us informed. I’m interested and I would like to know whether it’s good or bad, and I don’t know yet. But I have questions that are unanswered.”

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