• Significant revenue declines and the need for significant appropriation reductions to balance the budget have been the main focus of the 2011 municipal budget review. In addition, the State of NJ has enacted P.L. 2011, c.38 (S-2068) effective March 21, 2011 which removes the mandatory Library appropriation from the municipal budget and creates its own separate tax levy. This is not a new tax, but a different way to display the Library appropriation on your tax bill.

• For the second consecutive year total Salaries and Wages have decreased.

Retirements, salary freezes, reductions in overtime and negotiated concessions with unionized employees to avoid layoffs have produced a $287,377 (-1.77%) decrease in the total Salary and Wages line item.

• For the fourth year in a row Operating Expenses have been reduced. In 2011, Operating Expenses have been reduced by $250,598 (-8.55%).

• In 2011 the Town will be anticipating available fund balance equaling $1,719,000 to fund the budget. The $1,719,000 allocation of surplus in the 2011 budget is $1,414,000 less than was available for the 2010 budget. Due to this continued decline in surplus revenue the last few years, surplus accounts are no longer a main source to fund multiple revenue declines or be used as an offset for increased expenses. Appropriations must be reduced to stay compliant with tax levy caps.

• Under the State’s New 2% Levy Cap law the Town is approved for a tax levy of $24,110,046 which represents a decrease of 4.83% compared to 2010’s tax levy. This includes the 2% levy cap allowance ($457,579), plus ($773,510) in State approved exclusions.

2011 Municipal Budget - Headlines

2011 Municipal Budget

Significantly declining revenue for the second consecutive year required the need to significantly reduce expenses.

•Total Anticipated Revenues -$834,881(-6.07%) compared to 2010

•Total Municipal Budget -$2,058,533 (-5.26%) •No longer includes mandatory Library appropriation of $2,449,484 as per recently enacted P.L.c38 (S-2068).

•Total Salaries & Wages -$287,377 (-1.77%)

•Total Operating expenses -$250,598 (-8.55%)

2011 Municipal Budget - Revenues = $37,040,243Delinquent Taxes

$1,575,000 4.25%

Fund Balance, $1,719,000

4.64%

Misc. Revenue, $6,563,127.28

17.72%

State Aid$3,073,326.00

8.30%

Local Property Taxes, $24,109,789.72

65.09%

Revenue Sources

- Miscellaneous Revenue (+$633,700)

- Surplus (-$1,414,000)

- Property Taxes (-$1,223,651)

- State Aid (no change)

2011 Municipal Budget - Revenues

2011 State Aid Analysis - Revenues

4% Levy Cap 4% Levy Cap 4% Levy Cap 2% Levy Cap

AID PROGRAMS 2008 2009 2010 2011

Consolidated Municipal Property Tax Relief Act (CMPTRA) $1,473,690 $1,161,069 $529,527 $469,890

Total Energy Tax Receipts Distribution $2,708,389 $2,853,727 $2,543,799 $2,603,436

Total State Aid $4,182,079 $4,014,796 $3,073,326 $3,073,326

-0.87% -4.00% -23.45% 0.00%

-$36,499 -$167,283 -$941,470 $0.00

2011 Major Miscellaneous Revenue Sources

•Municipal Court Fines and Fees $713,000 (-$37,000)

•Parking Permits, Meters & Paystations $1,755,000 (-$45,000)

•Building Department Fees $739,000 (+$271,000)

•Interest on Income & Investments $16,000 (-$9,500)

•Cable Franchise Fees $ 396,004 (+$36,619)

•Library Reimbursements $ 239,927

•Interest & Costs on Taxes $ 370,600 (+60,600)

2011 Fund Balance Analysis - Revenues• Fund Balance is considered to represent cash and may be utilized as a

revenue item in the budget to support appropriations.

• Fund Balance results from the process of closing the operations account at the end of the fiscal year and is generated either by excess of revenue over what was anticipated in the budget or lesser expenditures than were appropriated in the budget. The net result of the two determines what amount of fund balance will be available at the beginning of the next fiscal year. In addition to the fund balance account the Town has maintained the sale of assets fund balance which has been a strategic account.

• 2011 available fund balance is $1,414,000 less than was appropriated in 2010.

Available Fund Balance Snapshot – January 1

2008 2009 2010 2011Surplus $3,894,896 $2,848,351 $2,055,545 $1,843,409SoA $3,848,407 $3,416,811 $1,293,711 $711Total $7,743,303 $6,265,163 $3,349,256 $1,844,110

2011 Municipal Budget - Appropriation Trends

6 Year Staffing Reductions:

28 F/T positions eliminated

18 P/T positions eliminated

9 F/T positions reduced to P/T

6 F/T positions funded outside tax support

EXPENDITURES 2008 2009 2010 2011

Salaries & Wages $17,007,984 $17,224,614 1.3% $16,196,923 -6.0% $15,909,546 -1.8%

Operating $ 3,074,828 $ 3,056,002 -0.6% $ 2,929,795 -4.1% $ 2,679,197 -8.6%

Statutory/Required $14,344,277 $15,798,828 10.1% $16,415,877 3.9% $14,828,169 -9.7%

2011 Municipal Budget - Appropriations = $37,040,243

Salary & Wages $15,909,546

42.95%

Statutory/Required$14,828,169

40.03%* As per P.L. c38(S-2068) does not

include $2,449,484 Library appropriation.

Operating Expenses$2,679,197

7.23%

Deferred Charges$5,000.01%

Reserve for Uncollected Taxes $1,940,000

5.24%

Debt Service$1,673,331

4.52%

Capital Improvement Fund$5,000.01%

Did You Know???

The 2011 Municipal Budget includes appropriations for:

•Street Lighting $380,000

•Public Fire Hydrants $507,400

•Senior Transportation Services $40,200

•Reserve for Uncollected Taxes $1,940,000

•Leaf Collection & Disposal $238,000

•Curbside Recycling $139,000

•Crossing Guards $335,400

2011 Municipal & Library Tax Levy CalculationsTotal Appropriations $37,040,243

minus

Anticipated Revenues $12,930,453equals

Local Purpose Tax $22,109,789 (2% Cap +)divided by

Total Ratable Value $1,892,997,716equals

Municipal Tax Rate 1.274

Avg. assessed home in 2011 = $184,000 – Approx. Municipal taxes = -$115/year

Total Library Appropriations $2,449,454divided by

Total Ratable Value $1,892,997,716equals

Library Tax Rate 0.129 (As per P.L. 2011 c.38 (S-2068))

Avg. assessed home in 2011 = $184,000 – Approx. Library taxes = $237/year

Approximate Net increase = $122/year

2010 Total Tax Collections = $138,607,942

Union County OpenSpace Tax Levy

.82%$1,150,883.29

School District Tax Levy60.55%%

$83,913,722.00

Municipal Tax Levy18.28%

$25,333,440.77

Union County Tax Levy20.35%

$28,209,895.97

Continued Examination …

Review and submission of 2011-2012 capital improvement budget

Continued examination of revenue sources with anticipated increases in various fines and fees in addition to implementing new fees where appropriate.

Continued examination of all expense items with anticipated reductions in programs, services and personnel to deliver a tax levy compliant budget in 2012.

Continued examination and management of debt service.

2012 Municipal Budget Challenges

•Preservation of Services (Public Safety, Senior Transportation, Curbside Leaf Collection, Curbside Recycling, Conservation Center, Infrastructure Improvements, etc…)

•Continued Reduction in Expenses

•Continued Loss of Revenue: Surplus

State Aid Miscellaneous Revenues