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 o munic icipal l ser servic ices. s. The bal balance is is by la law colle ollected by the mun unicipal government an and dis distributed to o eith either the loc local scho school, reg egional l sch school l or or the he Cou ounty of of Suss Sussex.  The mun unicipal tax x for or 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 Special Items of Local Construction Code Fees Revenue Revenue 1% 1% 4% Interlocal Services Revenue Grants 8% 0.46% Delinquent Taxes 5% State Aid 7% Fund Balance Property Taxes 7% 67%

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%

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

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

D EB EBT S ER 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

D EB EBT S ER 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 or 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 or Unc ncolle lected Taxes County $144,804.06 Municipal 21% $163,699.47 24% WVRHS $132,569.04 20% Elementary School $238,927.43 35%

Use se of of 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

C HA IN T AX AX R ATABLE BASE HANGES IN 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 Farm (Qualified) Farm (Regular) 9% 0.10% 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.