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 § Dept. budget request forms submitted to Township Mgr. § November § Dept. budget hearings with Township Manager § Preparation of Draft Budget § January/February § Council Budget review § March -May § Budget Introduction § April – June § Public hearing and adoption § July

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: Modest Increase in Construction Permit Revenue - l $17,000 Increase in New Inter-Local Revenue (all three new l 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: 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 l identification signage and welcome signs – EDC

Budget Highlights (con.) § Capital projects (con.): Funds to Upgrade the main switches within the l Municipal/Police Complex main computer systems– Computer Technology Funds to Replace 1 MDT Laptop for Use in Police Vehicles – l – Police Purchase of hydraulic lift stretcher unit (2 yrs. program to l have one at each side of the Township) – EMS Continuation of various established replacement programs for l replacement of communications equipment, radios, fire hoses, turnout gear, and SCBA air packs

Debt Service Debt service appropriation reflects permanent financing l 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 In 2011 the Township had a bond sale to permanently l 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%

2012 Appropriations Reserve for Uncollected Deferred Charges Taxes 1% 7% Debt Service 8% Capital Improvements 4% Pension Expenses Salaries 5% 38% Statutory Expenses 3% Operating Expenses 34%

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

Reserve for Uncollected Taxes Total Appropriation - $726,833 § Elementary School $268,928 l County § WVRHS Municipal 22% 24% $123,561 l § County WVRHS $159,903 17% l § Municipal Elem. School 37% $174,439 l

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

Surplus Available (Dec. 31) 3500000 3000000 2500000 2000000 Fund Balance… 1500000 1000000 500000 0

How Surplus is Generated 100% 80% 60% Misc. Debits/Credits 40% MRNA Excess Rev. 20% Budget Lapse 0% -20%

Historic Change in Surplus $4,000,000 70.0% $3,500,000 60.0% $3,000,000 50.0% $2,500,000 40.0% Surplus Available January 1 $2,000,000 30.0% $1,500,000 20.0% $1,000,000 10.0% $500,000 $- 0.0% 19931994199519961997199819992000200120022003200420052006200720082009201020112012

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

Net Taxable Value 1996-2012 $1,200,000,000 $1,150,000,000 $1,100,000,000 $1,050,000,000 $1,000,000,000 $950,000,000 $900,000,000 $850,000,000 $800,000,000 $750,000,000 $700,000,000 $650,000,000 $600,000,000 $550,000,000 $500,000,000 $450,000,000 $400,000,000 $350,000,000 $300,000,000 1998 2000 2002 2004 2006 2008 2010 2012

2012 Net Taxable Value Hardyston Township 2012 Net Taxable Value Apartment Industrial Farm (Qualified) 1% Vacant Land 4% 0% Commercial 4% 10% Farm (Regular) 1% Residential 80%

Tax Collection Rate

Delinquent Taxes Outstanding as of 1/1 Delinquent Tax Outstanding as of 1/1 $1,000,000 $800,000 $600,000 $400,000 $200,000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

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 of 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 operations 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)