After 18 months of negotiations and growing frustration on both sides, the Hopewell Township Fire District No. 1 Board of Fire Commissioners voted May 28 to release more than $300,000 in previously withheld payments to Pennington Borough Fire District while continuing negotiations over disputed administrative and professional service costs.
The board approved a resolution authorizing payment of approximately $306,000 representing the undisputed portion of Pennington’s 2025 and 2026 shared-services funding. The remaining disputed amount — estimated at between $45,000 and $65,000 in legal, accounting, election and administrative expenses — will be addressed through continued negotiations between representatives of both fire districts.
The action came after an extended public discussion that highlighted sharply different views over what costs should be covered under a shared-services agreement that has governed fire protection services between the two districts for decades.
“We agree, they need to get paid for the service that they’ve provided,” Commissioner Erick Burd said during the discussion.
Commissioner Joseph Novak said the board’s position was to release the undisputed funds (which had been held in escrow) while continuing discussions over the remaining costs.
“We will cut you a check tomorrow,” Novak said, referring to the undisputed portion of the agreement.
Dispute centers on administrative costs
The disagreement stems from Hopewell Township’s decision to withhold payment for certain administrative and professional expenses included in Pennington’s budgets.
According to the historic shared-services agreements between the districts, Hopewell Township pays 76 percent of Pennington’s fire district budget in exchange for primary fire protection services in a large portion of the township.
Pennington officials argue that legal, accounting and administrative costs have long been part of those budgets and have historically been funded through the agreement.
Speaking during public comment, Pennington Fire Commissioner Scott Schaub said Pennington volunteers have continued providing uninterrupted service despite not receiving payments for 18 months.
“The service has been provided but the payment has not,” Schaub told commissioners.
Schaub said the disputed costs are necessary to operate a public fire district and maintain accountability.
“Legal oversight, audits, financial controls, and administrative compliance are also essential components of responsibly operating a public fire district,” he said.
Hopewell commissioners, meanwhile, questioned whether Hopewell Twp taxpayers should be responsible for covering a separate district’s legal and accounting expenses under a shared-services arrangement.
“The issue is simply the administrative fees,” Burd said during the discussion.
Commissioners repeatedly emphasized that the dispute is not over fire protection services themselves, but rather over which expenses are properly included under the agreement.
Working group proposed
As discussion continued, both sides expressed support for forming a smaller working group consisting of commissioners, attorneys and financial representatives from each district to resolve the remaining issues.
Burd suggested representatives from both boards meet with their attorneys and accountants to determine what expenses are appropriate under New Jersey’s shared-services laws and how future payments should be structured.
The goal, commissioners said, is to negotiate an updated agreement that clearly defines responsibilities, costs and reporting requirements moving forward.
The current arrangement traces its roots back more than a decade. Agreements approved in 2010 and renewed in 2016 and 2021 established the framework under which Pennington provides primary fire protection services to portions of Hopewell Township while Hopewell contributes a percentage of Pennington’s operating budget.
Hiring Moves Forward as Commissioners Seek Workplace Agreement
The board also approved a resolution allowing conditional offers of employment to move forward for prospective career firefighters, but only after current professional staff sign a proposed “Harmonious Working Environment” policy and that policy is included with all future hires.
Commissioners said the policy is intended to establish expectations for professional conduct, workplace respect and cooperation among career firefighters, volunteers, commissioners, and partner agencies.
Under the resolution, all current career firefighters would be required to sign the agreement before new hires are brought on board. The district will then work with the firefighters’ union to determine how the policy can be incorporated into future hiring documents and, potentially, collective bargaining agreements.
The discussion follows months of tension surrounding relations within the district between volunteer and career personnel after an incident where some volunteers from the Pennington Fire Company, who were also career firefighters in another municipality, were told they couldn’t volunteer anymore. Commissioners said the goal is to establish clear expectations for professional behavior for everyone while creating a framework for a more collaborative workplace moving forward.
