BOROUGH OF CHATHAM 2014 Municipal Budget July 11, 2014 RJF 1 - - PowerPoint PPT Presentation

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BOROUGH OF CHATHAM

2014 Municipal Budget

July 11, 2014 RJF

July 11, 2014 RJF 2

Budget Process Schedule (revised 3/10/14)

General & Capital Budget Presentation………..February 24th COLA Ordinance Introduction……………………February 24th Budget Discussion…………………………………..March 10th COLA Ordinance Adoption………………………...March 10th Budget Introduction………………………………..March 24th Capital Ordinance Introduction…………………March 24th Budget Adoption……………………………………April 28th Capital Ordinance Adoption……………………..April 28th

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Description 2013 2014 +/- +/- Percent Total Budget $13,673,993 $14,094,778 $420,785 3.08% Total Tax Rate .399 .405 .006 1.50% Tax Levy (library included)$8,217,632 $8,361,943 $144,311 1.75% Municipal Tax Rate .360 .365 .005 1.39% Library Tax Rate .039 .040 .001 2.56% Annual Increase for Average Assessed Home of $660,325= $46.22

Budget Overview 2014

RJF

Total Budget (less $165,000 from capital) $13,929,778 $255,785 1.87%

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$165,000 Road Repairs

Initial Grant Funding (Local Aid 2012) $65,000 Supplemental Grant Funding (early 2013) $250,000 Total Combined Grant Amount $315,000 Anticipated Grant Appropriation $150,000

(unaware of the $250,000 grant)

Balance (to be transferred for other road projects) $165,000

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Road Improvement Plan

Mill & Pave

Center Street (original capital) Other general repairs $25,000

(road surplus)

Duchamp Place (original capital) Yale & Harvard (partial reconstruction) Summit Avenue (Fern – Borough line) (road surplus) Red Road (Hillside – Fairmount) (road surplus) Fairview Avenue (Washington – Borough line) (original capital) Division Avenue (Cost share with Madison) (road surplus) Fairmount (County project) Edgehill Avenue (road surplus)

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Description 2012 2013 12/13 2014 13/14 Increase Increase Municipal Tax $2,588 $2,635 $47 $2,681 $46

(Including Library)

Open Space Tax $33 $33 No Change $33 No Change Total Tax $2,621 $2,668 $47 2,714 $46_____ Total Annual Municipal Cost Increase

(Average Assessment $660,325)

2014

RJF

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Tax Levy CAP (3 year bank)

Maximum allowable amount to be raised by taxation $ 7,518,208 Amount to be raised by taxation (library tax not included) $ 7,518,208 2013 CAP Bank $ 177,185 2012 CAP Bank $ 180,568 2011 CAP Bank $ 175,516 Total CAP Bank $ 533,269

July 11, 2014

CAP Exclusions

Pension Increases Capital Improvement

Increases

Debt Service Increase New Ratable Adjustment

To The Tax Levy

Health Insurance

Increase (2% inside CAP)

LOSAP Increase Deferred Charges (all)

Library Tax Is Not Included In The Cap Calculation. If necessary the three year CAP bank or a portion can be applied to the following year budget which allows for a higher percentage tax rate increase over the 2% CAP limit.

RJF

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Appropriations CAP (2 year bank)

2013 (actual inside CAP) $8,593,913 2014 3.5% $ 300,786 2012 CAP Banking $628,824 2013 CAP Banking $146,558 Added Assessments $20,511 2014 Maximum Allowed $9,690,595 2014 (actual within CAP) $8,796,554 2014 Maximum $894,041 (allowed within appropriations CAP) 2014 CAP Bank $118,658 CAP Exclusions

Debt Service Capital Improvements New Ratable Adjustment Grants Reserve for Uncollected Taxes Deferred Charges Health Insurance Increase

(4% inside CAP)

LOSAP Snow Emergencies Library Joint Meeting

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0.00 2.00 4.00 6.00 8.00 10.00 2008 2009 2010 2011 2012 2013 2014

Total Tax Rate Increase Comparison 2008 - 2014

8.57% 2.34% 1.43% 3.38% 6.81% 1.79%

P E R C E N T A G E

The 2014 local open space tax remains unchanged

1.50%

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How was your tax 2013 dollar spent?

School Tax 63%

Municipal Tax 22% County Tax 15%

July 11, 2014

($24,279,800) ($8,349,011) ($5,810,678)

RJF

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Joint Meeting 4%/4% Pensions & Benefits 7%/7% Health Benefits 5%/5% Boards & Commissions 1%/2% Parking & Utilities 3%/4% Legal & Insurance 3%/4% Interlocal Agreements 4%/3% Police 20%/21% Public Works 9%/9% Library 6%/6% Recreation 1%/1% Administration 6%/6% Fire LOSAP EMS 2%/2% Debt Service 13%/13%

Expense Percentage By Department/Type To The Total Budget

2014

Reserve For Uncollected Taxes 13%/13% Deferred Charges 2%/2%

Red percent is 2013

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0% 10% 20% 30% 40% 50% 60% 70% 80%

Madison Chatham Borough Florham Park Long Hill Chatham Township New Providence Summit Berkeley Heights

Chatham Borough ranks 2nd lowest when compared to surrounding towns

July 11, 2014

Tax dollar percent that funds the budget

RJF

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1 2 3 4

2008 2009 2010 2011 2012 2013 2014

Billions

Chatham Borough Chatham Twp. Florham Park Madison

+6.40% +.25% +61%

• 2.32%

2008 percentage increase/decrease compared to 2014

Property Valuation & Percentage Increases 2008 - 2014

Madison’s increase is due to revaluation

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Surplus/Reserve for Uncollected Taxes 2008 -2013

$- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000

2008 2009 2010 2011 2012 2013

Surplus (actual) Reserve for Uncollected Taxes

Chatham Borough’s Reserve for Uncollected Taxes Ranks 7th Highest In Morris County

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1 2 3 4 5 6

2008 2009 2010 2011 2012 2013 2014

Millions Sewer Leases General

Revenues 2008 - 2014

$1,328 $1,168 $1,035 $855 $855 $516 $537 $544 $559 $580 $5,673 $5,579 $5,266 $4,690 $4,025 RJF $595 $1,030 $4,035 $1,030 $595 $3,904

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0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

2008 2009 2010 2011 2012 2013 2014

Millions

Surplus Other Court Parking Sewer State Aid Leases

General Revenue Breakdown 2008 - 2014

Grants, Permits & Fees included

July 11, 2014 RJF 17 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0

2008 2009 2010 2011 2012 2013 2014 Millions

Salary Operating Debt Service Pension #REF! Library

66 63 60 57 54 49 49

Annual Expense Comparison 2008 - 2014

Fulltime Employees 08 – 66 / 09 – 63 / 10 – 60 11 – 57 / 12 – 54 /13 - 49/ 14-49

Key Reductions Dispatch: 4 – 0 Police: 25 – 19 DPW: 18 – 16 Administration: 14 - 9

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200,000 400,000 600,000 800,000 1,000,000

2008 2009 2010 2011 2012 2013 2014

State Aid Trends 2008 - 2014

Year 2014 2013 2012 Amount Allocated $572,099 $572,099 $572,099 + / - Dollars $0 $ 0 ( $ 2,303) 2011 $574,402 $ 4,606 2010 $569,796 ($176,853) 2009 $746,649 ($ 81,014) 2008 $827,663 ($54,462) RJF

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Reserve for Uncollected Taxes

Year 2014 2013 2012 RUT $1,720,576 $1,732,279 $1,725,706 Total Budget 14,094,778 $13,661,993 $13,424,938 % of Budget 12.21% 12.68% 12.85% 2011 $ 2,021,912 $13,628,582 14.83% 2010 $ 2,431,371 $13,820,540 17.59% 2009 $ 2,691,689 $14,309,139 18.81% 2008 $ 2,720,891 $14,242,636 19.10% July 11, 2014

2008 - 2014

500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 8 9 10 11 12 13 14

RJF

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Mandatory Expenses Increases 2014

Pension – PERS/PFRS…………………………………………..$ 23,971 Debt Service……………………………………………………………. 48,924 DPW Contractual Salaries……………………………………….. 22,125 Police Contractual Salaries……………………………………… 59,792 Library……………………………………………………………………... 30,999 Joint Meeting……………………………………………………………. 92,385 TOTAL………………………………………………………………….. $ 278,196 Total Budget Increase $420,785 Less Capital Transfer $165,000 $255,785 (actual increase)

RJF

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Capital Spending 2008 - 2014

$0 $1 $2 $3 $4 $5 2008 2009 2010 2011 2012 2013 2014

Millions

RJF

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500,000 1,000,000 1,500,000 2,000,000 8 9 10 11 12 13 14

General Debt Service 2008 - 2014

$1,748 $1,414 $1,312 $1,446 $1,407 $1,782

RJF

$1,798

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Budget Line Items For Discussion

Line Item Requested Budgeted Recommended Project Pride 27,030 27,030 27,030 Planner 47,000 23,407 30,000 Planner (COAH) 25,000 DPW Overtime 89,000 65,000 89,000 DPW Operating 45,500 30,500 45,500 Totals 233,530 145,937 191,530

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2 4 6 8 10 12 14 16 2008 2009 2010 2011 2012 2013 2014

Millions

Revenue Taxes Total Budget

Revenue/Tax/Total Budget Comparison 2014

$14.2 $14.3 $13.8 $13.6 $13.4

The Challenge

$7.0 $7.3 $7.5 $8.2 $7.0 $7.2 $7.2 $6.4 $6.1 $5.5 $13.7 $8.3 $5.7

RJF

$14.1 $8.0 $5.4

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DISCUSSION

July 11, 2014 RJF