HARDYSTON TOWNSHIP 2012 Municipal Budget Presented at Budget - - PowerPoint PPT Presentation

HARDYSTON TOWNSHIP 2012 Municipal Budget

Presented at Budget Public Hearing April 3, 2012

Budget Process/Timeline

§ October § November § January/February § March -May § April – June § July

§ Dept. budget request forms submitted to Township Mgr. § Dept. budget hearings with Township Manager § Preparation of Draft Budget § Council Budget review § Budget Introduction § Public hearing and adoption

Budget Highlights

§ Total budget - $10,093,155

l Tax Levy Increase from 2010 - $57,128 l Represents less than 1% or 0.088% increase l Increase on an average home $12.55/year

Budget Highlights (con.)

§ Allowable tax levy increase - $263,598 § Actual tax levy increase - $57,128 § Balance of allowable increase not being utilized - $206,470 § 0.088% increase in the tax levy

Budget Highlights (con.)

§ Budget impacted by the following:

l REVENUE REDUCTIONS: l Reduction of Income from Interest on

Investments - $40,000

l Reduction of Income from Solar Renewable

Energy Credits*

l *Deferred sale of 2011 credits until market

stabilizes to realize higher return in 2012

Budget Highlights (con.)

l POSITIVE REVENUE CHANGES:

l

Modest Increase in Construction Permit Revenue - $17,000

l

Increase in New Inter-Local Revenue (all three new inter-local partnerships commencing mid-year in 2011 after the adoption of the 2011 budget, a full year’s contract is added to revenues for 2012):

• Hamburg Borough – Fire Official - $8,160
• Town of Newton – Fire Subcode - $7,140
• Andover Township – Land Use Administration – 39,189

Budget Highlights

§ Continue with pay-as-you-go capital improvement plan: § Capital projects include:

l

Funds to Replace 1 Single Axle Dump Truck – DPW

l

Fund to Replace DVR’s within Municipal Complex – B&G

l

Funds for the completion of a program to replace facility identification signage and welcome signs – EDC

Budget Highlights (con.)

§ Capital projects (con.):

l

Funds to Upgrade the main switches within the Municipal/Police Complex main computer systems– Computer Technology

l

Funds to Replace 1 MDT Laptop for Use in Police Vehicles – – Police

l

Purchase of hydraulic lift stretcher unit (2 yrs. program to have one at each side of the Township) – EMS

l

Continuation of various established replacement programs for replacement of communications equipment, radios, fire hoses, turnout gear, and SCBA air packs

Debt Service

l

Debt service appropriation reflects permanent financing for all municipal debt, including municipal building and new aerial device fire truck, solar energy generating facility, replacement of old municipal building with salt/substation facility on south side of township, upgrades to existing DPW facility and emergency communication upgrades for police, fire and first aid communications throughout the municipality

l

In 2011 the Township had a bond sale to permanently finance its remaining short-term note debt. Despite the economic downturn, the Township received a bond rating increase by Standards and Poors and was able to secure a very attractive long-term bond rate, as a result.

Budget Highlights (con.)

§ Operational Projects:

l Road resurfacing projects slated for portions of

the following roads in 2012:

• Portions of the public portion of Crystal

Springs Road

• Oil & Stone

–Old Quarry Road, Scenic Lakes Road, Franek Road, Orts Road

• 1000 tons of patch to be utilized throughout

the Township where found to be needed.

Budget Highlights (con.)

§ Operational Projects:

l Replacement of two police vehicles l Replacement of four of five officers who have

retired over the past several years

2012 Municipal Budget Select Budget Appropriations

2012 2011 $ Change % Change Salaries $ 3,827,888 $ 3,751,807 $ 76,081 2.0% Operating Expenses $ 3,390,056 $ 3,332,459 $ 57,597 1.7% Statutory Expenses $ 288,418 $ 283,151 $ 5,267 1.9% Pension Expenses $ 528,019 $ 532,879 $ (4,860)

• 0.9%

Capital Improvements $ 415,000 $ 518,500 $ (103,500)

• 20.0%

Debt Service $ 824,940 $ 713,947 $ 110,993 15.5% Deferred Charges $ 92,000 $ 100,000 $ (8,000)

• 8.0%

Reserve for Uncollected Taxes $ 726,833 $ 726,833 $ - 0.0% Total $ 10,093,154 $ 9,959,575 $ 133,578 1.3%

Salaries 38% Operating Expenses 34% Statutory Expenses 3% Pension Expenses 5% Capital Improvements 4% Debt Service 8% Deferred Charges 1% Reserve for Uncollected Taxes 7%

2012 Appropriations

Differences in Operating 2011 - 2012

§ Increase in fuel costs due to rising prices § Net 2% increase to health insurance costs after employee contributions to premium costs § Modifications for changes in services for tax collection, finance office, computer technology and zoning – resulted in a modest savings.

2011 Salary Distribution

Dispatch 8% Land Use/Zoning 2% Police 47% Recreation 0% Construction 9% Court 2% Admin. 9% Public Works 22% Other Public Safety 1%

Reserve for Uncollected Taxes Total Appropriation - $726,833

County 22% WVRHS 17% Elem. School 37% Municipal 24%

§ Elementary School

l

$268,928

§ WVRHS

l

$123,561

§ County

l

$159,903

§ Municipal

l

$174,439

Revenue Comparison 2011-2012

2012 2011 $ Change % Change Property Taxes 6,511,739 $ 6,454,611 $ 57,128 $ 0.9% Surplus 980,000 $ 977,279 $ 2,721 $ 0.3% State Aid 725,074 $ 725,074 $

• $

0.0% Delinquent Taxes 370,000 $ 370,000 $

• $

0.0% Grants 85,664 $ 58,817 $ 26,847 $ 45.6% Interlocal Services Revenue 934,949 $ 901,117 $ 33,832 $ 3.8% Construction Code Fees 129,000 $ 112,000 $ 17,000 $ 15.2% Special Items of Revenue 47,274 $ 12,500 $ 34,774 $ 278.2% Local Revenue 309,456 $ 348,178 $ (38,722) $

• 11.1%

TOTAL 10,093,155 $ 9,959,576 $ 133,579 $ 1.3%

Surplus Available (Dec. 31)

500000 1000000 1500000 2000000 2500000 3000000 3500000

Fund Balance…

How Surplus is Generated

• 20%

0% 20% 40% 60% 80% 100%

• Misc. Debits/Credits

MRNA Excess Rev. Budget Lapse

Historic Change in Surplus

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 19931994199519961997199819992000200120022003200420052006200720082009201020112012

Surplus Available January 1

Historic Use of Surplus

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 $11,000,000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Total Budget Revenue

Net Taxable Value 1996-2012

$300,000,000 $350,000,000 $400,000,000 $450,000,000 $500,000,000 $550,000,000 $600,000,000 $650,000,000 $700,000,000 $750,000,000 $800,000,000 $850,000,000 $900,000,000 $950,000,000 $1,000,000,000 $1,050,000,000 $1,100,000,000 $1,150,000,000 $1,200,000,000 1998 2000 2002 2004 2006 2008 2010 2012

2012 Net Taxable Value

Vacant Land 4% Residential 80% Farm (Regular) 1% Farm (Qualified) 0% Commercial 10% Industrial 4% Apartment 1%

Hardyston Township

2012 Net Taxable Value

Tax Collection Rate

Delinquent Taxes Outstanding as of 1/1

$200,000 $400,000 $600,000 $800,000 $1,000,000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Delinquent Tax Outstanding as of 1/1

Hardyston Township Tax Rate Analysis

§ The average annual tax rate increase for the municipal portion of the tax rate for the past 15 years (since 1998) has been less than 1% or 0.94% § The total increase in the municipal portion

• f an average home’s property taxes over

the past 15 years (including this year) was $269.58 – an average increase of $17.97/year

Keys to Future Budgets

§ Development of a 5-Year Strategic Plan for future municipal

• perations and revenue projections to continue to meet community

needs and goals incorporating new cap law changes § Consideration of strategies to weather the current and potentially extended period of national and local economic instability § Continued development of strategies to address dwindling surplus § Conservative and balanced management of resources to provide for the growing needs of an expanding and diversified population and community § Continued expansion of Inter-Local Relationships § Continued Economic and Tourism Development

2012 Shared Services

§ Joint Liability/Workers Comp. Insurance § Joint Health Insurance § Public Works Services (Sussex Borough) § Recycling Collection (Hamburg Borough) § Animal Control Services (Wantage) § Fuel Pump Services (BOE’s/Franklin/Hamburg/County of Sussex) § Littell Center Recreation (Franklin) § Lawn Maintenance (Hardyston BOE) § Computer Technology (Hardyston BOE) § HTMUA – Administration, Billing, Field Service, Finance

2012 Shared Services (cont.)

§ Construction (Franklin, Hamburg, Newton Sussex) § Senior Transport. Services (Sussex Cty.) § Fire Prevention (Hamburg Borough § Land Use Administration (Andover Twp.) § Solid Waste Collection/Recycling (HTBOE)

Hardyston Lands Preserved

TOTAL ACRES WITHIN HARDYSTON TOWNSHIP: 20853.67 OWNER ACREAGE % OF TOTAL State of New Jersey 4346.32 20.8% United States of America 174.36 0.8% Audobon Society 77.73 0.4% NJ Natural Land Trust 67.42 0.3% TOTAL TAX EXEMPT OPEN SPACE (1) 4665.83 22.4% Newark Watershed Cons. & Development Corp. (2) 4001.00 19.2% Passaic River Coalition (3) 105.13 0.5% TOTAL TAXABLE OPEN SPACE 4106.13 19.7% TOTAL PRESERVED LANDS (4) 8771.96 42.1% Other Tax Exempt Lands (5) 463.65 2.2% TOTAL ALL TAX EXEMPT LANDS 5129.48 24.6% ALL TAX EXEMPT + PRESERVED TAXABLE 9235.61 44.3%

Completed Goals:

§ See Available Report of 2011 Accomplishments and 2012 Goals

Improvements to Public Facilities & Infrastructure

§ Continue development of independent closure plan with DEP for landfill using grant funding § Development of the Community Garden Project § Various smaller maintenance related projects relating to the Municipal Complex relating to water quality, general maintenance, etc.

Ongoing Projects

Development and finalization of 5-year strategic operations plan § Negotiations for further expansion of

• ur inter-local partnership base

§ Development and implementation of sustainable community and wellness initiatives

Defining Economic Development & Planning Focus and Initiatives

§ Continue focus on development of pre-approved projects § Seek additional industrial development investment in North Church Technical Center § Continue pursuit of the implementation of the Township’s approved affordable housing plan

Challenges

§ Limiting growth of operations § Navigating an uncertain economy § State aid in the new fiscal reality § Accurately forecasting development and its impact to service needs and fiscal consequences § Continue to reduce reliance on surplus in view of development slow down § Continued exploration of shared service

• pportunities

§ Wisely and adequately meeting State-mandated

• bligation to affordable housing