1

BOROUGH OF CHATHAM

2014 Municipal Budget

July 11, 2014 RJF

July 11, 2014 RJF 2

Budget Process Schedule (revised 3/10/14)

General & Capital Budget Presentation………..February 24th

COLA Ordinance Introduction……………………February 24th

Budget Discussion…………………………………..March 10th

COLA Ordinance Adoption………………………...March 10th

Budget Introduction………………………………..March 24th

Capital Ordinance Introduction…………………March 24th

Budget Adoption……………………………………April 28th

Capital Ordinance Adoption……………………..April 28th

July 11, 2014 3

Description 2013 2014 +/- +/- Percent

Total Budget $13,673,993 $14,094,778 $420,785 3.08%

Total Tax Rate .399 .405 .006 1.50%

Tax Levy (library included)$8,217,632 $8,361,943 $144,311 1.75%

Municipal Tax Rate .360 .365 .005 1.39%

Library Tax Rate .039 .040 .001 2.56%

Annual Increase for Average Assessed Home of $660,325= $46.22

Budget Overview

2014

RJF

Total Budget (less $165,000 from capital) $13,929,778 $255,785 1.87%

July 11, 2014 RJF 4

$165,000 Road Repairs

Initial Grant Funding (Local Aid 2012) $65,000

Supplemental Grant Funding (early 2013) $250,000

Total Combined Grant Amount $315,000

Anticipated Grant Appropriation $150,000

(unaware of the $250,000 grant)

Balance (to be transferred for other road projects) $165,000

July 11, 2014 RJF 5

Road Improvement Plan Mill & Pave

Center Street (original capital) Other general repairs $25,000 (road surplus)

Duchamp Place (original capital) Yale & Harvard (partial reconstruction)

Summit Avenue (Fern – Borough line) (road surplus)

Red Road (Hillside – Fairmount) (road surplus)

Fairview Avenue (Washington – Borough line) (original capital)

Division Avenue (Cost share with Madison) (road surplus)

Fairmount (County project)

Edgehill Avenue (road surplus)

July 11, 2014 6

Description 2012 2013 12/13 2014 13/14

Increase Increase

Municipal Tax $2,588 $2,635 $47 $2,681 $46 (Including Library)

Open Space Tax $33 $33 No Change $33 No Change

Total Tax $2,621 $2,668 $47 2,714 $46_____

Total Annual Municipal Cost Increase (Average Assessment $660,325)

2014

RJF

7

Tax Levy CAP (3 year bank)

Maximum allowable amount to be

raised by taxation $ 7,518,208

Amount to be raised

by taxation (library tax not included) $ 7,518,208

2013 CAP Bank $ 177,185

2012 CAP Bank $ 180,568 2011 CAP Bank $ 175,516

Total CAP Bank $ 533,269

July 11, 2014

CAP Exclusions

Pension Increases

Capital Improvement Increases

Debt Service Increase

New Ratable Adjustment

To The Tax Levy

Health Insurance Increase (2% inside CAP)

LOSAP Increase

Deferred Charges (all)

Library Tax Is Not Included In The Cap Calculation.

If necessary the three year CAP bank or a portion can be applied to the following year budget which allows for a higher percentage tax rate increase over the 2% CAP limit.

RJF

July 11, 2014 RJF 8

Appropriations CAP (2 year bank)

2013 (actual inside CAP) $8,593,913

2014 3.5% $ 300,786

2012 CAP Banking $628,824

2013 CAP Banking $146,558

Added Assessments $20,511

2014 Maximum Allowed $9,690,595

2014 (actual within CAP) $8,796,554

2014 Maximum $894,041 (allowed within appropriations CAP)

2014 CAP Bank $118,658

CAP Exclusions

Debt Service

Capital Improvements

New Ratable Adjustment

Grants

Reserve for Uncollected Taxes

Deferred Charges

Health Insurance Increase (4% inside CAP)

LOSAP

Snow Emergencies

Library

Joint Meeting

July 11, 2014 RJF 9

0.00

2.00

4.00

6.00

8.00

10.00

2008 2009 2010 2011 2012 2013 2014

Total Tax Rate Increase Comparison

2008 - 2014

8.57%

2.34%

1.43%

3.38%

6.81%

1.79%

P

E

R

C

E

N

T

A

G

E

The 2014 local open space tax remains unchanged

1.50%

10

How was your tax 2013 dollar spent?

School Tax

63%

Municipal

Tax

22%

County

Tax

15%

July 11, 2014

($24,279,800) ($8,349,011) ($5,810,678)

RJF

July 11, 2014 RJF 11

Joint Meeting

4%/4%

Pensions & Benefits

7%/7%

Health Benefits

5%/5%

Boards & Commissions

1%/2%

Parking &

Utilities

3%/4%

Legal &

Insurance

3%/4%

Interlocal Agreements

4%/3%

Police

20%/21%

Public Works

9%/9%

Library

6%/6%

Recreation

1%/1% Administration

6%/6% Fire LOSAP EMS

2%/2% Debt Service

13%/13%

Expense Percentage By Department/Type To The Total Budget

2014

Reserve For Uncollected Taxes

13%/13% Deferred

Charges

2%/2%

Red percent is 2013

12

0%

10%

20%

30%

40%

50%

60%

70%

80%

Madison ChathamBorough

FlorhamPark

Long Hill ChathamTownship

NewProvidence

Summit BerkeleyHeights

Chatham Borough ranks 2nd lowest when compared to surrounding towns

July 11, 2014

Tax dollar percent that funds the budget

RJF

July 11, 2014 RJF 13

0

1

2

3

4

2008 2009 2010 2011 2012 2013 2014

Bil

lio

ns

Chatham Borough Chatham Twp. Florham Park Madison

+6.40%

+.25%

+61%

-2.32%

2008 percentage increase/decrease compared to 2014

Property Valuation & Percentage Increases

2008 - 2014

Madison’s increase is due to revaluation

July 11, 2014 RJF 14

Surplus/Reserve for Uncollected Taxes

2008 -2013

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2008 2009 2010 2011 2012 2013

Surplus (actual) Reserve for Uncollected Taxes

Chatham Borough’s Reserve for Uncollected Taxes Ranks 7th Highest In Morris County

July 11, 2014 15

0

1

2

3

4

5

6

2008 2009 2010 2011 2012 2013 2014

Mil

lio

ns

Sewer Leases General

Revenues

2008 - 2014

$1,328 $1,168 $1,035 $855 $855

$516 $537 $544 $559 $580

$5,673 $5,579 $5,266

$4,690

$4,025

RJF

$595

$1,030

$4,035

$1,030

$595

$3,904

July 11, 2014 RJF

16

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2008 2009 2010 2011 2012 2013 2014

Mil

lio

ns Surplus Other Court

Parking Sewer State Aid

Leases

General Revenue Breakdown

2008 - 2014

Grants, Permits & Fees included

July 11, 2014 RJF 17

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

2008 2009 2010 2011 2012 2013 2014

Mil

lio

ns

Salary Operating Debt Service Pension #REF!Library

66

63

60

57

54

49

49

Annual Expense Comparison

2008 - 2014 Fulltime Employees

08 – 66 / 09 – 63 / 10 – 60

11 – 57 / 12 – 54 /13 - 49/ 14-49

Key Reductions

Dispatch: 4 – 0

Police: 25 – 19

DPW: 18 – 16

Administration: 14 - 9

July 11, 2014 18

0

200,000

400,000

600,000

800,000

1,000,000

2008 2009 2010 2011 2012 2013 2014

State Aid Trends

2008 - 2014

Year

2014

2013

2012

Amount Allocated

$572,099

$572,099

$572,099

+ / -

Dollars

$0

$ 0

( $ 2,303)

2011

$574,402

$ 4,606

2010

$569,796

($176,853)

2009

$746,649

($ 81,014)

2008

$827,663

($54,462)

RJF

19

Reserve for Uncollected Taxes

Year

2014

2013

2012

RUT

$1,720,576

$1,732,279

$1,725,706

Total Budget

14,094,778

$13,661,993

$13,424,938

% of Budget

12.21%

12.68%

12.85%

2011

$ 2,021,912

$13,628,582

14.83%

2010

$ 2,431,371

$13,820,540

17.59%

2009

$ 2,691,689

$14,309,139

18.81%

2008

$ 2,720,891

$14,242,636

19.10%

July 11, 2014

2008 - 2014

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

8 9 10 11 12 13 14

RJF

July 11, 2014 20

Mandatory Expenses Increases 2014

Pension – PERS/PFRS…………………………………………..$ 23,971

Debt Service……………………………………………………………. 48,924

DPW Contractual Salaries……………………………………….. 22,125

Police Contractual Salaries……………………………………… 59,792

Library……………………………………………………………………... 30,999

Joint Meeting……………………………………………………………. 92,385

TOTAL………………………………………………………………….. $ 278,196

Total Budget Increase $420,785

Less Capital Transfer $165,000

$255,785 (actual increase)

RJF

July 11, 2014 21

Capital Spending

2008 - 2014

$0

$1

$2

$3

$4

$5

2008 2009 2010 2011 2012 2013 2014

Mil

lio

ns

RJF

July 11, 2014 22

0

500,000

1,000,000

1,500,000

2,000,000

8 9 10 11 12 13 14

General Debt Service

2008 - 2014

$1,748

$1,414 $1,312

$1,446

$1,407

$1,782

RJF

$1,798

July 11, 2014 RJF 23

Budget Line Items For Discussion

Line Item Requested Budgeted Recommended

Project Pride 27,030 27,030 27,030

Planner 47,000 23,407 30,000

Planner (COAH) 25,000 0 0

DPW Overtime 89,000 65,000 89,000

DPW Operating 45,500 30,500 45,500

Totals 233,530 145,937 191,530

July 11, 2014 24

0

2

4

6

8

10

12

14

16

2008 2009 2010 2011 2012 2013 2014

Mil

lio

ns

Revenue Taxes Total Budget

Revenue/Tax/Total Budget Comparison

2014

$14.2 $14.3 $13.8 $13.6 $13.4

The

Challenge

$7.0 $7.3 $7.5 $8.2

$7.0 $7.2

$7.2

$6.4 $6.1 $5.5

$13.7

$8.3

$5.7

RJF

$14.1

$8.0

$5.4

25

DISCUSSION

July 11, 2014 RJF