HARDYSTON TOWNSHIP IP 2020 Municipal Budget Prese sented at Bud - - PowerPoint PPT Presentation

HARDYSTON TOWNSHIP IP 2020 Municipal Budget

Prese sented at Bud Budget Public He Hearing April 22, 2020

Bu Budget Process/Timeline

• October
• Dept. budget request forms

submitted to Township Mgr.

• November
• Dept. budget hearings with Township

Manager

• January/February

Preparation of Draft Budget & Council Budget review

• March – April

Budget Introduction Public hearing and adoption

Bu Budget Hig Highlights

• Total budget - $11,488,451.82
• Increase in appropriations from 2019 Budget -

$200,822.92

• Percentage Increase to Appropriations – 1.7%

Bu Budget Hig Highlights

Tax Levy Increase

• Increase to levy 2019 to 2020 - $62,905 (.85%)
• Increase to average home valued at $232,914 = $19.63

Bu Budget Hig Highlights

Tax Levy Increase

• Allowable tax levy increase = $214,385.79
• Actual tax levy increase = $62,905
• Unused Cap Bank Availability for Future Years:
• 2018

$337,320

• 2019

$135,411

• 2020

$151,480

• TOTAL

$624,211

Bu Budget Hig Highlights

• Of

f the he app approxim imately $6 $6,5 ,596.14 tha hat the he average hom home in in Har ardyston Township pai paid in in rea eal l es estate taxes in in 20 2019, $1,6 1,601.06 (24 (24%) ) was as attributable le to

• munic

icipal l ser servic ices.

• s. The

bal balance is is by la law colle

• llected by the mun

unicipal government an and dis distributed to

• eith

either the loc local scho school, reg egional l sch school l or

• r the

he Cou

• unty of
• f

Suss Sussex.

• The mun

unicipal tax x for

• r the average hom

home in in 20 2020 will ill be be $1 $1,6 ,620.70

General Revenues

PROJECTED REVENUE CHANGES

• Miscellaneous Revenue (excluding grants, receipts for delinquent taxes, and

property tax revenue) increased by 2%.

• 2020 Revenue Changes –
• Revenue expectations for Municipal Court Fines/Fees and Uniform Fire Safety

Fess Revenue did not meet expectations in 2019 resulting in a reduction in anticipated revenue for 2020 of $23,561.

• Construction code fees, SRECs, interest on investments and additional revenue

from abandoned & vacant properties and quarry license fees resulted in positive changes in anticipated revenue for 2020 totaling $68,375.

• Revenue from shared services continues to be strong and stable and represents

8% of revenue needed to fund the municipal budget.

Revenue Co Comp mparis ison 2019 2019-2020 2020

Item of Revenue 2020 2019 $ Change % Change Property Taxes 7,425,910 $ 7,363,004 $ 62,905 $ 0.85% Fund Balance 750,000 $ 730,000 $ 20,000 $ 2.7% State Aid 725,074 $ 725,074 $

• $

0.0% Delinquent Taxes 585,000 $ 581,245 $ 3,755 $ 0.6% Grants 393,425 $ 306,191 $ 87,234 $ 28.5% Interlocal Services Revenue 898,103 $ 909,750 $ (11,647) $

• 1.3%

Construction Code Fees 134,840 $ 126,480 $ 8,360 $ 6.6% Special Items of Revenue 44,700 $ 52,400 $ (7,700) $

• 14.7%

Local Revenue 531,400 $ 493,484 $ 37,915 $ 7.7% TOTAL 11,488,452 $ 11,287,629 $ 200,823 $ 1.8%

Gen eneral Revenues

Property Taxes 67% Fund Balance 7% State Aid 7% Delinquent Taxes 5% Grants 0.46% Interlocal Services Revenue 8% Construction Code Fees 1% Special Items of Revenue 1% Local Revenue 4%

APPROPRIATIONS

• Overall total appropriations increased by

$200,822.92

• Appropriations within the cap (excludes

debt service, capital & reserve for uncollected taxes) increased by 3.7% or $289,079, $566,716 less than the maximum permitted under the appropriations cap

APPROPRIATIONS

• Increases
• Legal - $15,000, 25%
• Social Security - $29,000, 11%
• Insurance - $51,718, 7%
• Buildings & Grounds – $34,780, 64%
• Decreases
• Administration S&W - $75,213, 32%
• Reserve for Uncollected - $63,533, 9%

Appropriations - Excluded from CAPS Capital Improvements 405,700.00 $ 425,900.00 $ (20,200.00) $

• 5%

Debt Service 997,881.54 $ 953,990.64 $ 43,890.90 $ 4% Deferred Charges 24,250.00 $ 148,250.00 $ (124,000.00) $

• 511%

Reserve for Tax Appeals 25,000.00 $ 25,000.00 $

• $

0% LOSAP 28,000.00 $ 28,000.00 $

• $

0% Reserve for Uncollected Taxes 680,000.00 $ 743,533.60 $ (63,533.60) $

• 9%

Subtotal 2,160,831.54 $ 2,324,674.24 $ (100,309.10) $

• 4.64%

Appropriations - Within CAPS Municipal Salaries (Exclude Police & Dispatch) 1,310,717.49 $ 1,334,535.54 $ (23,818.05) $

• 2%

Police & Dispatch Salaries 2,674,790.16 $ 2,507,951.32 $ 166,838.84 $ 6% Operating Expenses 2,125,387.66 $ 2,062,545.08 $ 62,842.58 $ 3% Health Insurance 772,686.76 $ 725,848.57 $ 46,838.19 $ 6% Pension Expenses 853,510.00 $ 846,133.00 $ 7,377.00 $ 1% Statutory Expenses 299,000.00 $ 270,000.00 $ 29,000.00 $ 10% Subtotal 8,036,092.07 $ 7,747,013.51 $ 289,078.56 $ 3.60% Total 10,196,923.61 $ 10,071,687.75 $ 188,769.46 $ 1.85%

Appr Appropr pria iations s Comp Comparis ison n 20 2019 19-2020 2020

APPROPRIATIONS

Capital Improvements 4% Debt Service 10% Deferred Charges 0% Reserve for Tax Appeals 0.25% LOSAP 0.27% Municipal Salaries (Exclude Police & Dispatch) 13% Police & Dispatch Salaries 26% Operating Expenses 21% Health Insurance 8% Pension Expenses 8% Statutory Expenses 3% Reserve for Uncollected Taxes 7%

DEB

EBT SER ERVIC ICE

• Current municipal debt totals $11,510,250
• Percentage of debt to Township value

presently is 1.026 %

• Percentage of debt allowed is 3.5%, which

would equate to $39,124,351

DEB

EBT SER ERVICE

• The Township continues to retain its Aa2 bond

rating.

• The Township’s current debt is secured by

permanent financing.

• The Township authorized an additional $4,825,000

in debt service to finance the 7 year capital plan in 2018.

• The Township will issued the first short-term note in

the amount of $1.795 million in 2019 to fund the 2019/2020 road resurfacing projects and fire engine.

• The Township will issued the second short-term

note in the amount of $1.790 million in 2021 to fund the 2021/2022 road resurfacing projects and fire engine.

• The notes are anticipated to convert to permanent

financing in 2023

Rese eserve for

• r Unc

ncolle lected Taxes

• Total appropriation - $680,000
• Represents the amount required to be budgeted to account for

under collection of the municipal, county, and school taxes.

• Reduced from 2019 appropriation due to the improved tax

collection

• 2019 tax collection rate is 98.38%
• Collection Rate used for 2020 budget is 97.80% which will allow

for deviation from the prior year’s collection and is more in line with historic collection

Res eserv rve for

• r Unc

ncolle lected Taxes

County $144,804.06 21% WVRHS $132,569.04 20% Elementary School $238,927.43 35% Municipal $163,699.47 24%

Use se of

• f Fu

Fund Bala alance

• 2020 budget proposes to increase surplus

utilization by $20k to $750,000

• Continued policy of balancing surplus utilization

against regeneration

• In the 2019 budget we utilized $730,000 and

regenerated 1,121,141.50. Adding $391,141.50 to fund balance.

• As of December 31, 2019 the Township’s fund

balance totaled $2,052,787.86

• This positive impact on surplus was a result of a

improved tax collection over prior years.

• Given the fact that it is premature to assume that

the improved tax collection is sustainable coupled with the current economic events surrounding the COVID-19 pandemic it is recommended that we maintain the prior year’s rate of surplus utilization

Fun Fund ba bala lance Available (De (Dec. 31) 31)

Ho How fu fund bala lance is is Gen enerated

His Historic Ch Change in in fu fund bala lance

CHA

HANGES IN IN TAX AX RATABLE BASE ASE

• The equalized tax ratable base of the Township saw a decrease of $3.9 million.
• Attributable to tax appeals, farmland assessments, and Verizon telephone

communication court ruling

• The significant loss in valuation is important as it relates to the overall increase

in the tax levy.

• With no changes in spending the rate would need to increase by approximately .003 cents per

$100 of assessed value or approximately $5.91 on the average home to account for the loss in value

• Optimistic that through the 2020 appeal process and new construction activity

we will regain the loss in value

• The extension of the appeals process and future claims as a result of the COVID-

19 pandemic may have a significant impact on 2021.

2020 Net Taxable Value

Commercial 9% Farm (Qualified) 0.10% Farm (Regular) 1% Industrial 4% Apartment 2% Vacant 3% Residential 81%

Ha Hardyston Township Tax x Rate Analysis

• The average annual tax rate increase for the

municipal portion of the tax rate for the past 22 years (since 1998) has been less than 2%

• The total increase in the municipal portion of an

average home’s property taxes over the past 22 years (including this year) was $464.18 – an average increase of $21.41/year or $1.80/mo.

Con Conclusions

• While in prior years we have been able to present a

budget that resulted in zero increase in taxation this year’s budget does include a modest increase.

• The budget is comprehensive in nature and

addresses a number important fiscal policies, priorities regarding service to the residents and present and future capital planning needs.

• The budget includes stable utilization of surplus

and provides for recycling, senior bus service, parks and recreation, public safety, road resurfacing and facilities maintenance.