20 2020 20 Passaic assaic Co Coun unty ty Bu Budg dget et - PowerPoint PPT Presentation

20 2020 20 Passaic assaic Co Coun unty ty Bu Budg dget et In Intr trodu oduction ction Fe Febru ruar ary y 11, 20 2020 20

Cassandra “Sandi” Lazzara, Director Pasquale “Pat” Lepore, Dep Director Assad R. Akhter John W. Bartlett, Esq. Theodore “TJ” Best Terry Duffy Bruce James Passaic assaic Co Coun unty ty Boar Bo ard d of Cho hosen sen Freehold Fr eeholder ers

2020 20 Passaic ssaic County unty Bud udget et De Devel elop opment ment Proce cess ss Includes a detailed and analytical review of each department concentrating on the following: • Reviewing each table of organizations focusing on vacancies • Reviewing operating expenses looking at a five-year historic trend in spending • Reviewing current and future grant opportunities • Examining future departmental needs • Identifying potential future risk areas • Five-year capital request for each department

Vis isio ion, n, Mi Miss ssio ion n & & Go Goals ls Vision on Passaic County will continue to highlight our Rich History and Bright Future by continuing to build on our fiscal stability. We will continue to focus on quality of life issues, assure a safe and maintained infrastructure and offer cultural and recreational opportunities for all our residents and visitors. We will continue to offer support for those most in need with compassion and the dignity they deserve. Mission ion To protect and preserve the quality of life for our diverse population, all while being effective and efficient stewards of tax dollars.

Our Goals • Protect the County's bond rating • Continue our conservative budgeting approach • Stabilize taxes • Continue to increase crucial appropriations • Increase reserves to insure fiscal stability for future generations • Continue to provide critical investments in our infrastructure our parks and our historic sites • Reduce debt for future generations • Continue to identify shared services with our municipalities and other counties

Achi hieving ving Our ur Go Goals als Protecting the County's Bond Rating Moody’s Investors Services Upgrade ades s Pass ssaic aic Co Coun unty ty to Aa1 The second highest rating available from Moody’s and the highest rating in Passaic County history!

Passaic County’s Rating History DATE TE RATING TING AGENCY NCY RATING TING REASON ASON 1998 Moody’s A3 Downgraded March 2010 Moody’s A2 Upgrade April 2010 Moody’s Aa3 Recalibration June 2013 Standard & Poor’s AA Upgrade November 2017 Moody’s Aa2 Upgrade October 2019 Moody’s Aa1 Upgrade

Achieving Our Goals - Stabilizing Taxes • The last four (4) years the county levy has increased an average of ONLY 0.46% • Over the last ten (10) years the county levy has increased an average 1.76%, staying under the state mandated cap 0.06 0.05 0.04 0.03 0.02 0.01 0.00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Achieving Our Goals - Stabilizing Taxes County tax rate continues to decline 0.76 0.75 0.74 0.73 0.72 0.71 0.70 0.69 0.68 0.67 0.66 2015 2016 2017 2018 2019

Achieving hieving Our r Goals als Continuing to increase crucial appropriations APPROPRIATIONS 2020 2019 CHANGE PERCENTAGE General Government $44,109,531 $43,146,992 $962,539 2.23% Insurance $80,721,000 $84,421,000 ($3,700,000) (4.38%) Regulation $31,868,184 $31,815,334 $52,850 (0.37%) Roads & Bridges $4,363,840 $4,155,050 $208,790 5.02% Correction & Penal $46,764,726 $48,083,925 ($1,319,199) (2.74%) Health & Welfare $70,620,333 $69,968,097 $652,236 0.93% Education $22,987,355 $22,504,129 $483,226 2.15% Parks & Recreation $6,880,761 $5,194,885 1,685,876 32.45% Unclassified $10,468,151 $11,009,319 ($541,168) (4.92%) Contingency $50,000 $50,000 $0.00 0.00% Capital Improvements $3,500,000 $2,000,000 $1,500,000 75.00% Debt Service $54,634,550 $53,878,159 $756,391 1.40% Deferred Charges & Statutory $49,561,244 $50,120,560 ($559,316) (1.12%) Expenditures Total (Net of Grants) $426,529,675 $426,347,450 $182,225 0.04%

Ach chieving ving Ou Our Goals ls YEAR FUND BALANCE Increasing reserves to insure 2019 $77,510,058 fiscal stability for future generations 2018 $66,427,185 HIGHE HEST ST FU FUND BALANCE ANCE IN PASSAI SAIC C 2017 $50,056,246 COU OUNTY Y HIS ISTOR ORY 2016 $45,016,252 Without using one-time gimmicks, 2015 $34,364,188 Passaic County increased fund balance 194% over the past seven (7) years 2014 $26,052,147 2013 $26,351,307 Source, Passaic County Audit Reports, and 2019 Annual Financial Statement (unaudited)

Achievi ieving g Ou Our Goals als Increasing reserves to insure fiscal stability for future generations RESERVES 2017 2018 2019 Workers’ Compensation $5,456,202 $4,135,509 $9,616,289 Health Benefits $13,912,500 $22,005,719 $25,067,153 Liability Insurance $5,436,558 $5,352,632 $17,405,901 Snow Removal $783,671 $877,784 $2,174,124 Accumulated Absences $774,927 $999,488 $1,645,217 Unemployment Compensation $731,357 $588,015 $1,254,670 County Pension Plan $575,735 $577,063 $1,748,320 TOTAL RESERVES $27,670,950 $34,536,210 $58,911,674 TOTAL RESERVES PLUS FUND BALANCE $77,727,196 $100,963,395 $136,121,732 Source, Passaic County Audit Reports, and 2019 Annual Financial Statement (unaudited)

Achie ieving ing Our ur Go Goals ls Balance than Never anticipating more Fund we regenerate YEAR FUND BALANCE E ANTICI ICIPATED TED FUND BALANCE E REGENE ENERA RATED TED CURRENT ENT FUND BALANCE 2019 $19,000,000 $30,082,873 $77,510,058 2018 $19,000,000 $35,370,939 $66,427,185 2017 $18,000,000 $23,039,994 $50,056,246 2016 $18,000,000 $28,652,064 $45,016,252 2015 $18,000,000 $26,312,041 $34,364,188 Source, Passaic County Audit Reports, and 2019 Annual Financial Statement (unaudited)

Achiev ieving ing Ou Our Go Goals ls Continuing to provide critical investments in our infrastructure, parks and historic sites Proje ojects cts Curr urren ently tly Under der Constructi nstruction: on: • Rehabilitation of Courthouse Annex, Paterson • New DPW Building, Wayne • Two Bridges Road Bridge and West End Extension Project, Wayne • Replacement of Morsetown Road Culvert, West Milford • Energy Savings Program • 2019 Road Resurfacing Program (total of 9.76 miles) • Goffle Brook Park Improvements, South of Diamond Bridge Avenue, Hawthorne • Weasel Brook Park – Phase II Improvements, Clifton • Dundee Island Park, Passaic • Elevator Renovations at Parking Garage and Board of Social Services, Paterson

Achievi ieving g Ou Our Goals als YEAR PRINCIPAL INTEREST TOTAL DEBT SERVICE $28,717,000 $8,939,760 $37,656,760 2020 Reducing debt for 2021 26,073,000 7,993,136 34,066,136 2022 25,800,000 7,124,678 32,924,678 future generations 2023 24,505,000 6,307,867 30,812,867 25,448,000 5,450,955 30,898,955 2024 2025 22,696,000 4,539,263 27,235,263 • 84% of debt will be 2026 23,439,000 3,653,351 27,092,351 amortized over the next 10 19,282,000 2,865,850 22,147,850 2027 years 2028 17,795,000 2,164,645 19,959,645 2029 11,395,000 1,675,008 13,070,008 • Debt principal drops off 2030 9,705,000 1,309,808 11,014,808 starting in 2021 9,895,000 1,011,570 10,906,570 2031 • Capital Budget adopted 2032 6,705,000 704,845 7,409,845 policy is to issue no more 2033 6,852,000 512,395 7,364,395 than $10,000,000 in debt 4,820,000 323,050 5,143,050 2034 per year 2035 4,060,000 230,950 4,290,950 2036 2,370,000 142,650 2,512,650 2037 2,385,000 71,550 2,456,550 $271,942,000 $55,021,330 $326,963,330 TOTAL Source, Passaic County Department of Finance

Youth Detention Center with Essex County Ach chie ieving ving Ou Our Go r Goals ls Consumer Affairs with Bergen County Public Health Services Continuing to identify shared • Borough of Haledon services • Borough of Wanaque • Borough of Woodland Park • Township of West Milford Information Technology Partnering with local governments to consolidate and regionalize operations • City of Passaic • Borough of Pompton Lakes • Wanaque Board of Education • Borough of Woodland Park Operation of Hamilton House Museum - City of Clifton Fueling – Pompton Lakes, Prospect Park and West Milford Brining – Borough of Hawthorne

PASSAIC COUNTY’S FUTURE IS BRIGHT

Brig ight Fut utur ure Investing in our infrastructure, parks and historic sites in 2020 • Replacement of the Fairlawn Avenue Bridge, Paterson • Paterson Hamburg Turnpike and Alps Road intersection improvements, Wayne • Superstructure reconstruction of Spruce Street Bridge, Paterson • 2020 road resurfacing program (approx. 4.5 miles) • Replacement of Kingsland Avenue Bridge, Clifton • Replacement of North Haledon Avenue culvert, North Haledon • Lambert Castle & Carriage House Restoration, Paterson • Morris Canal Greenway – Browertown Road Project, Little Falls & Woodland Park • Goffle Brook Park parking lot expansion, Hawthorne • Rifle Camp Park Phase I improvements – Woodland Park • Highlands Preserve Athletic Field improvements – West Milford • Elevator renovation for Court House, Paterson • Highlands Rail Trail – Phase I, Wanaque