BOROUGH OF MADISON COUNTY OF MORRIS REPORT OF AUDIT …
Transcript of BOROUGH OF MADISON COUNTY OF MORRIS REPORT OF AUDIT …
BOROUGH OF MADISON
COUNTY OF MORRIS
REPORT OF AUDIT
2018
NISIVOCCIA LLP CERTIFIED PUBLIC ACCOUNTANTS
BOROUGH OF MADISON
COUNTY OF MORRIS
REPORT OF AUDIT
2018
BOROUGH OF MADISON TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2018
PART I- FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA Independent Auditors' Report
Financial Statements Current Fund
Comparative Balance Sheet - Regulatory Basis Comparative Statement of Operations and Change in Fund Balance - Regulatory Basis Statement of Revenue - Regulatory Basis Statement of Expenditures - Regulatory Basis
Trust Funds Comparative Balance Sheet - Regulatory Basis Statement of Fund Balance- Regulatory Basis - Assessment Trust Fund (Not Applicable) Statement of Revenue- Regulatory Basis - Assessment Trust Fund (Not Applicable) Statement of Expenditures- Regulatory Basis - Assessment Trust Fund (Not Applicable)
General Capital Fund Comparative Balance Sheet - Regulatory Basis Statement of Fund Balance - Regulatory Basis
Water Utility Fund Comparative Balance Sheet - Regulatory Basis Comparative Statement of Operations and Change in Utility Fund Balance
- Regulatory Basis - Water Utility Operating Fund Statement of Revenue - Regulatory Basis - Water Utility Operating Fund Statement of Expenditures- Regulatory Basis - Water Utility Operating Fund
Electric Utility Fund Comparative Balance Sheet - Regulatory Basis Comparative Statement of Operations and Change in Utility Fund Balance
- Regulatory Basis - Electric Utility Operating Fund Statement of Fund Balance- Regulatory Basis - Electric Utility Capital Fund (Not Applicable) Statement of Revenue - Regulatory Basis - Electric Utility Operating Fund Statement of Expenditures - Regulatory Basis - Electric Utility Operating Fund
Public Assistance Fund (Not Applicable) General Fixed Assets Account Group
Comparative Balance Sheet - Regulatory Basis
Notes to Financial Statements
Supplementary Data Officials in Office and Surety Bonds Current Fund
Schedule of Cash - Treasurer Schedule of Cash - Collector (Not Applicable) Schedule of Taxes Receivable and Analysis of Property Tax Levy Schedule of Tax Title Liens Schedule of Revenue Accounts Receivable Schedule of 201 7 Appropriation Reserves
1-3
Exhibit
A A-1 A-2 A-3
B B-1 B-2 B-3
c C-1
D
D-1 D-2 D-3
E
E-1 E-2 E-3 E-4
G
1-30
Schedule 1
Exhibit A-4 A-5 A-6 A-7 A-8 A-9
PART I (Cont'd) Supplementary Data (Cont'd)
Current Fund (Cont'd)
BOROUGH OF MADISON TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
Schedule of Local School District Taxes Payable Schedule of State and Federal Grants Receivable - Federal and State Grant Fund Schedule of Appropriated Reserves - Federal and State Grant Fund Schedule of Unappropriated Reserves - Federal and State Grant Fund
Trust Funds Schedule of Cash - Treasurer Schedule of Assessments Receivable -Assessment Trust Fund (Not Applicable) Schedule of Reserve for Assessments Receivable -Assessment Trust Fund (Not Applicable) Schedule of Reserve for Animal Control Fund Expenditures - Animal Control Fund
General Capital Fund Schedule of Cash Analysis of Cash Schedule of Deferred Charges to Future Taxation- Unfunded Schedule of Improvement Authorizations Schedule of Capital Improvement Fund Schedule of Bond Anticipation Notes Payable (Not Applicable) Schedule of Serial Bonds Payable Schedule of Loans Payable Schedule of Bonds and Notes Authorized but not Issued
Water Utility Fund Schedule of Cash - Treasurer - Water Utility Fund Analysis of Cash - Water Utility Capital Fund Schedule of Consumer Accounts Receivable - Water Utility Operating Fund Schedule of Fixed Capital - Water Utility Capital Fund Schedule of Fixed Capital Authorized and Uncompleted - Water Utility Capital Fund Schedule of 201 7 Appropriation Reserves - Water Utility Operating Fund Schedule of Improvement Authorizations - Water Utility Capital Fund Schedule of Capital Improvement Fund - Water Utility Capital Fund Schedule of Deferred Reserve for Amortization - Water Utility Capital Fund Schedule of Bond Anticipation Notes Payable - Water Utility Capital Fund (Not Applicable) Schedule of Water Serial Bonds Payable - Water Utility Capital Fund (Not Applicable) Schedule of Bonds and Notes Authorized But Not Issued - Water Utility Capital Fund
(Not Applicable) Electric Utility Fund
Schedule of Cash - Treasurer - Electric Utility Fund Schedule of Cash- Collector - Electric Utility Operating Fund (Not Applicable) Analysis of Electric Capital Cash and Investments - Electric Utility Capital Fund Schedule of Consumer Accounts Receivable - Electric Utility Operating Fund Schedule of Fixed Capital - Electric Utility Capital Fund Schedule of Fixed Capital Authorized and Uncompleted - Electric Utility Capital Fund Schedule of 2017 Appropriation Reserves - Electric Utility Operating Fund Schedule of Improvement Authorizations - Electric Utility Capital Fund Schedule of Capital Improvement Fund - Electric Utility Capital Fund Schedule of Deferred Reserve for Amortization - Electric Utility Capital Fund
Exhibit A-10 A-11 A-12 A-13
B-4
B-5
C-2 C-3 C-4 C-5 C-6 C-7 C-8 C-9
C-10
D-4 D-5 D-6 D-7 D-8 D-9
D-10 D-11 D-12
E-5 E-6 E-7 E-8 E-9
E-10 E-11 E-12 E-13 E-14
Supplementary Data (Cont'd) Electric Utility Fund (Cont'd)
BOROUGH OF MADISON TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
Schedule of Bond Anticipation Notes Payable - Electric Utility Capital Fund (Not Applicable) Schedule of Serial Bonds Payable - Electric Utility Capital Fund (Not Applicable) Schedule of Bonds and Notes Authorized But Not Issued - Electric Utility Capital Fund (Not Applicable)
PART II - SINGLE AUDIT Schedule of Expenditures of Federal Awards Schedule of Expenditures of State Awards Notes to Schedules of Expenditures of Federal and State Awards Independent Auditors' Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
Schedule of Findings and Responses Summary Schedule of Prior Audit Findings
PART III - COMMENTS AND RECOMMENDATIONS Comments and Recommendations Summary of Recommendations
Exhibit
Page 1
2-3 4
5-6 7-8
9
1-4 5
BOROUGH OF MADISON
PART I
REPORT ON AUDIT OF
FINANCIAL STATEMENTS AND
SUPPLEMENT ARY SCHEDULES
YEAR ENDED DECEMBER 31, 2018
NI SI V 0 CC I A u.P Certified Public Accountants & Advisors
The Honorable Mayor and Members of the Borough Council
Borough of Madison Madison, New Jersey
Report on the Financial Statements
fudependent Auditors' Report
Mount Arlington Co1-porate Center 200 Valley Road, Suite 300
Mt Arlington, NJ 07856 973-298-8500 i 973-298-8501 Fax
Lawrence Business Center 11 Lawrence Road Newton, NJ 07860
973-383-6699 I 973-383-6555 Fax
We have audited the financial statements - regulatory basis - of the various funds of the Borough of Madison, in the County of Morris (the "Borough") as of and for the years ended December 31, 2018 and 2017, and the related notes to the financial statements, as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting practices prescribed or permitted by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the "Division") to demonstrate compliance with the Division's regulatory basis of accounting, and the budget laws of New Jersey; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America, audit requirements prescribed by the Division, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. fu making those risk assessments, the auditor considers internal control relevant to the Borough's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Borough's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit op1mons.
wvvw_nisivoccia.corn independent Mernber o'f f.JKR lnte;nat'onal
1
The Honorable Mayor and Members of the Borough Council
Borough of Madison Page2
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note 1, the financial statements are prepared by the Borough on the basis of accounting practices prescribed or permitted by the Division to demonstrate compliance with the Division's regulatory basis of accounting and the budget laws of New Jersey, which is a basis of accounting other than accounting principles generally accepted in the United States of America. The effects on the financial statements of the variances between the regulatory basis of accounting described in Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the Basis for the Adverse Opinion on US. Generally Accepted Accounting Principles paragraph, the financial statements referred to above do not present fairly in accordance with accounting principles generally accepted in the United States of America the financial position of each fund and account group of the Borough as of December 31, 2018 and 2017, or the changes in financial position or where applicable, cash flows thereof for the years then ended.
Opinion on Regulatory Basis of Accounting
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the various funds and account group of the Borough as of December 31, 2018 and 201 7, and the results of operations and changes in fund balance, where applicable, of such funds, thereof for the years then ended on the basis of accounting practices prescribed or permitted by the Division to demonstrate compliance with the Division's regulatory basis of accounting and the budget laws of New Jersey, as described in Note 1.
Emphasis of Matter
As discussed in Note 18 to the financial statements, the Borough implemented Governmental Accounting Standards Board ("GASE") Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions, during the year ended December 31, 2018. Our opinions are not modified with respect to this matter.
Other Matters
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements of the various funds that collectively comprise the Borough's financial statements. The supplementary data schedules listed in the table of contents and the schedules of expenditures of federal 'and state awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance") and New Jersey's OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid, are presented for purposes of additional analysis and are not a required part of the financial statements.
2
The Honorable Mayor and Members of the Borough Council
Borough of Madison Page 3
The supplementary data schedules and the schedules of expenditures of federal and state awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the various fund financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the various fund financial statements or to the various fund financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary data schedules and the schedules of expenditures of federal and state awards are fairly stated, in all material respects, in relation to the financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 22, 2019 on our consideration of the Borough's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Borough's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Borough's internal control over financial reporting and compliance.
May22, 2019 Mount Arlington, New Jersey NISNOCCIA LLP
Valerie A. Dolan Certified Public Accountant Registered Municipal Accountant No. 548
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BOROUGH OF MADISON COUNTY OF MORRIS
2018 CURRENT FUND
BOROUGH OF MADISON CURRENT FUND
A 1 of2
COMPARATIVE BALANCE SHEET- REGULATORY BASIS
December 31, Ref. 2018 2017
ASSETS
Regular Fund: Cash and Cash Equivalents:
Treasurer A-4 $ 15,129,411.60 $ 22,287 ,318.81 Change Fund 600.00 600.00
15,130,011.60 22,287,918.81
Receivables and Other Assets With
Full Reserves: Delinquent Property Taxes Receivable A-6 242,596.68 261,286.24 Tax Title Liens Receivable A-7 44,205.03 40,180.08 Property Acquired for Taxes at Assessed Valuation 15,300.00 15,300.00 Revenue Accounts Receivable A-8 11,030.96 7,885.79 Prepaid Local School Taxes A-10 3.13 Interfund Accounts Receivable:
Animal Control Fund B 19,103.41 22,045.04 Other Trust Fund B 22,130.75 Water Utility Operating Fund D 0.03 1,134.35 Payroll Agency Account 26,041.39 6,041.39
Total Receivables and Other Assets With Full Reserves 358,280.63 376,003.64
Total Regular Fund 15,488,292.23 22,663,922.45
Federal and State Grant Fund: State and Federal Grants Receivable A-11 326,277.58 240,387.12 Due from Current Fund A 175,377.15 223,874.00
Total Federal and State Grant Fund 501,654.73 464,261.12
TOT AL ASSETS $ 15,989,946.96 $ 23,128,183.57
BOROUGH OF MADISON
CURRENT FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
(Continued)
A
2 of2
December 31,
Ref. 2018
LIABILITIES, RESERVES AND FUND BALANCE
Regular Fund:
Appropriation Reserves:
Unencumbered A-3;A-9 $ 2,163,192.92
Encumbered A-3;A-9 1,224,356.60
Total Appropriation Reserves 3,387,549.52
Prepaid Taxes 522,181.85
Tax Overpayments
County Taxes Payable 52,960.64
Due State of New Jersey:
Senior Citizens' and Veterans' Deductions 15,404.29
Construction Code Fees 11,634.00
Interfund Accounts Payable:
Federal and State Grant Fund A 175,377.15
Open Space Trust Fund B 3,218.14
Other Trust Fund B 123.00
General Capital Fund c 66,490.67
Reserve for Tax Appeals Pending 491,473.09
Reserve for Revaluation 32,080.11
4,758,492.46
Reserve for Receivables and Other Assets 358,280.63
Fund Balance A-1 10,371,519.14
Total Regular Fund 15,488,292.23
Federal and State Grant Fund:
Appropriated Reserves A-12 501,654.73
Unappropriated Reserves A-13
Total Federal and State Grant Fund 501,654.73
TOTAL LIABILITIES, RESERVES AND FUND BALANCE $ 15,989,946.96
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
2017
$ 2,249,713.30
1,185,533.97
3,435,247.27
8,732,200.11
250.00
14,949.29
14,845.00
223,874.00
4,358.21
124,455.99
429,366.40
32,080.11
13,011,626.38
376,003.64
9,276,292.43
22,663,922.45
443,282.85
20,978.27
464,261.12
$ 23,128,183.57
BOROUGH OF MADISON
CURRENT FUND
A-1
COMPARATIVE STATEMENT OF OPERATIONS AND CHANGE IN FUND BALANCE -REGULATORY BASIS
Year Ended December 31,
Ref. 2018 2017 Revenue and Other Income Realized
Fund Balance Utilized $ 4,827,009.25 $ 4,587,200.00
Miscellaneous Revenue Anticipated 12,269,953.17 13,050,348.93
Receipts from:
Delinquent Taxes 261,341.93 255,365.77 Current Taxes 68,172,237.75 67' 154,434.05 Nonbudget Revenue 1,091,856.06 398,052.08
Other Credits to Income:
Accounts Payable Cancelled 47,832.05 Unexpended Balance of Appropriation Reserves 2,570,697.49 2,049,774.90 Cancellation of Appropriated Grant Reserves 3,711.42 13,486.20 Tax Overpayments Cancelled 249.96 Interfunds and Other Receivables Returned 51,351.53 92,674.28
Total Income 89,248,408.56 87,649,168.26
Expenditures
Budget Appropriations:
Municipal Purposes 29,826,202.51 29,543,974.36 County Taxes 10,483,701.64 10,537 ,685.36 Amount Due County for Added and Omitted Taxes 52,960.64 72,775.62 Local School District Taxes 42,274,722.00 41,390,945.00 Prepaid Local School Tax 3.13 Municipal Open Space Taxes 640,850.68 636,553.54 Cancellation of Federal and State Grant Fund Receivables 2,337.17 22,536.88 Prior Year Senior Citizens' Deduction Disallowed 250.00 250.00 Interfunds Advanced 45,144.83 51,351.53
Total Expenditures 83,326,172.60 82,256,072.29
Excess in Revenue 5,922,235.96 5,393,095.97
Fund Balance
Balance January 1 9,276,292.43 8,470,396.46
15,198,528.39 13,863,492.43 Decreased by:
Utilized as Anticipated Revenue 4,827,009.25 4,587,200.00
Balance December 31 A $ 10,371,519.14 $ 9,276,292.43
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
BOROUGH OF MADISON CURRENT FUND
STATEMENT OF REVENUE - REGULATORY BASIS YEAR ENDED DECEMBER 31, 2018
Added by Budget NJSA 40A:4-87
Fund Balance Anticipated $ 4,827,009.25
Miscellaneous Revenue: Licenses:
Alcoholic Beverages 30,000.00 Other Licenses 20,000.00
Fees and Permits 350,000.00
Fines and Costs: Municipal Court 150,000.00
Interest and Costs on Taxes 50,000.00 Parking Meters 55,000.00 Interest on Investments and Deposits 80,000.00 Police Burglar Alarm Fees 15,000.00
Cablevision Franchise Fees 200,000.00 Sewer Fees on Tax Exempt Property 260,000.00 Consolidated Municipal Property Tax Relief Aid 41,565.00 Energy Receipts Tax (P .L. 1997, Chapters 162 & 16 7) 766,964.00 Uniform Construction Code Fees 841,000.00 Inter-Municipal Health Contracts for Local Community
Health Services 285,000.00 Inter-Municipal Contract for Tax Assessor Services 88,000.00 Inter-Municipal Contract for Joint Court Agreement 585,000.00 Reserve for Recycling Tonnage Grant
2017 0.37 2018 20,977.90
Clean Communities Program - 2018 $ 27,796.41 Alcohol and Drug Abuse Grant (M.A.A.S.A.)
2018 12,419.00 Supplemental- 2018 2,000.00
Madison Main Street Foundation Grant 140,000.00 Other Special Items:
Utility Operating Surplus of Prior Years - Electric Utility 7,045,153.00 Life Hazard Use Fees 26,000.00 Payment in Lieu of Taxes on Exempt Property- FDU 20,000.00 Madison Cell Tower Leases 280,000.00 Utility Operating Surplus of Prior Years - Water Utility 200,000.00
Rosene! User Fees 30,000.00 Sewer Connection Fees 30,000.00 Recreation Fees 20,000.00
Technology Services 120,000.00
Total Miscellaneous Revenue 11,762,079.27 29,796.41
Realized
$ 4,827,009.25
31,823.80 $ 36,813.00
362,235.35
126,535.25 82,220.27 80,240.30
307,119.37 15,690.00
234,453.57 268,194.95
41,565.00 766,964.00 763,925.79
328,280.00 93,999.00
630,714.93
0.37 20,977.90 27,796.41
12,419.00 2,000.00
140,000.00
7,045,153.00 29,589.00 42,090.38
329,063.32 200,000.00 63,032.64 23,678.00
135.00 163,243.57
12,269,953.17
A-2 I of3
Excess or Deficit*
1,823.80 16,813.00 12,235.35
23,464.75 * 32,220.27 25,240.30
227,119.37 690.00
34,453.57 8,194.95
77,074.21 *
43,280.00 5,999.00
45,714.93
3,589.00 22,090.38 49,063.32
33,032.64 6,322.00 *
19,865.00 * 43,243.57
478,077.49
Receipts from Delinquent Taxes
Amount to be Raised by Taxes for Support of
Municipal Budget: Local Tax for Municipal Purposes Minimum Library Tax
Budget Totals
Nonbudget Revenue
BOROUGH OF MADISON CURRENT FUND
STATEMENT OF REVENUE - REGULATORY BASIS
YEAR ENDED DECEMBER 31. 2018 (Continued)
$
Budget
225,000.00
13,388,531.95 1,330,981.05
14,719,513.00
Added by NJSA 40A:4-87
31,533,601.52 $ 29,796.41
$ 31,533,601.52 $ 29,796.41 ========
Realized Excess or Deficit*
A-2
2 of3
$ 261,341.93 _$ ___ 36~,3_4_1._93_
15,122,021.74 1,733,489.79
1,330,981.05
16,453,002. 79 1,733,489.79
33,811,307.14 2,247,909.21
1,091,856.06 1,091,856.06
$ 34,903,163.20 $ 3,339,765.27
BOROUGH OF MADISON CURRENT FUND
STATEMENT OF REVENUE - REGULATORY BASIS YEAR ENDED DECEMBER 31, 2018
(Continued)
Allocation of Current Tax Collections
Collections Allocated to:
School, County, and Open Space Taxes
Add: Appropriation - Reserve for Uncollected Taxes
Amount for Support of Municipal Budget
Analysis oflnterest Earned
Cash Received - Treasurer Interest Due from:
General Capital Fund Other Trust Fund
Analysis ofNonbudget Revenue: Treasurer:
Morris County Municipal Joint Insurance Fund Refunds State of New Jersey- Senior Citizens and Veterans
Deductions Administrative Fee Department Collections:
Municipal Court - Public Defender Fees Recycling
FEMA Reimbursements - Superstorm Sandy Miscellaneous Refunds
Insurance Refunds Redeveloper's Agreement Payment in Lieu of Taxes on Exempt Property:
Housing Authority Elks Lodge Madison Place and Rose Hall
Sale of Property Joint Meeting Adjustment - Chatham Borough Payroll Processing Refunds Other Miscellaneous
Due from Animal Control Fund: Statutory Excess in Reserve for Animal Control Fund Expenditures
$ 59,615.04
1,415.48
9,4,28.50 25,502.22
9,160.87 11,001.14
21,284.61 44,200.00
136,550.10 9,667.40
453,885.95 90,000.00 64,034.17 46,776.81 90,230.36
$
$
$
A-2 3 of3
68,172,237.75
53,452,234.96 14,720,002.79
1,733,000.00
16,453,002.79
304,638.50
1,796.40 684.47
$ 307,119.37
$ 1,072,752.65
19,103.41
$ 1,091,856.06
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT
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cont
inue
d):
Ass
essm
ent
of T
axes
:
Sal
arie
s &
Wag
es
Oth
er E
xpen
ses
Leg
al S
ervi
ces
and
Cos
ts:
Oth
er E
xpen
ses
Eng
inee
ring
Ser
vice
s an
d C
osts
:
Sal
arie
s &
Wag
es
Oth
er E
xpen
ses
Env
iron
men
tal
Com
mis
sion
(N
.J.S
.A ..
40:5
6A:l
et s
eq.)
: O
ther
Exp
ense
s
Com
mun
ity
Bus
ines
s D
evel
opm
ent:
Sal
arie
s &
Wag
es
Oth
er E
xpen
ses
His
tori
c P
rese
rvat
ion:
O
ther
Exp
ense
s
LA
ND
US
E A
DM
INIS
TR
AT
ION
: P
lann
ing
Boa
rd:
Sal
arie
s &
Wag
es
Oth
er E
xpen
ses
Zon
ing
Boa
rd o
f Adj
ustm
ent:
Sal
arie
s &
Wag
es
Oth
er E
xpen
ses
PUB
LIC
SA
FE
TY
FU
NC
TIO
NS
: P
olic
e an
d F
ire
Bui
ldin
g:
Oth
er E
xpen
ses
Pol
ice:
Sal
arie
s &
Wag
es
Oth
er E
xpen
ses
BO
RO
UG
H O
F M
AD
ISO
N
CU
RR
EN
T F
UN
D
ST
AT
EM
EN
T O
F E
XP
EN
DIT
UR
ES
-R
EG
UL
AT
OR
Y B
AS
IS
YE
AR
EN
DE
D D
EC
EM
BE
R 3
1. 2
018
(Con
tinu
ed)
App
ropr
iati
ons Bud
get A
fter
P
aid
or
Exp
ende
d B
y
Bud
get
Mod
ific
atio
n C
harg
ed
Res
erve
d
$ 17
,471
.00
$ 17
,471
.00
$ 17
,471
.00
37,8
75.0
0 37
,875
.00
22,6
40.6
0 $
15,2
34.4
0
235,
000.
00
235,
000.
00
182,
303.
19
52,6
96.8
1
213,
625.
00
213,
625.
00
202,
257.
80
11,3
67.2
0 59
,450
.00
59,4
50.0
0 34
,677
.44
24,7
72.5
6
2,20
0.00
2,
200.
00
1,76
0.00
44
0.00
90,0
00.0
0 90
,000
.00
61,9
19.2
9 28
,080
.71
14,1
50.0
0 14
,150
.00
6,45
5.58
7,
694.
42
4,80
0.00
4,
800.
00
1,35
0.00
3,
450.
00
59,1
31.0
0 59
,131
.00
56,5
65.5
1 2,
565.
49
135,
000.
00
135,
000.
00
86,3
04.8
3 48
,695
.17
36,0
90.0
0 36
,090
.00
33,6
86.0
0 2,
404.
00
55,9
00.0
0 55
,900
.00
43,9
51.3
0 11
,948
.70
99,1
05.0
0 99
,105
.00
92,7
41.6
6 6,
363.
34
3,83
4,95
3.00
3,
834,
953.
00
3, 7
45, 1
25.0
5 89
,827
.95
357,
345.
00
357,
345.
00
323,
523.
10
33,8
21.9
0
A-3
2 o
f9
Une
xpen
ded
Bal
ance
C
ance
lled
A-3 2 of 9
Ope
rati
ons
Wit
hin
"CA
PS
" (c
onti
nued
):
PU
BL
IC S
AF
ET
Y F
UN
CT
ION
S (
Con
tinu
ed):
Pro
ject
Com
mun
ity
Pri
de:
Oth
er E
xpen
ses
Em
erge
ncy
Man
agem
ent
Ser
vice
s:
Oth
er E
xpen
ses
Fir
st A
id O
rgan
izat
ion
Con
trib
utio
n
Fire
: Sal
arie
s &
Wag
es
Oth
er E
xpen
ses:
Mis
cell
aneo
us O
ther
Exp
ense
s
Uni
form
Fir
e S
afet
y A
ct:
Fir
e O
ffic
ial
Saf
ety
Cod
e:
Sal
arie
s &
Wag
es
PU
BL
IC W
OR
KS
FU
NC
TIO
NS
:
Pub
lic
Wor
ks:
Sal
arie
s &
Wag
es
Oth
er E
xpen
ses
Sew
er D
epar
tmen
t:
Sal
arie
s &
Wag
es
Oth
er E
xpen
ses
Sha
de T
ree:
Oth
er E
xpen
ses
Gar
bage
Rem
oval
:
Oth
er E
xpen
ses
Pub
lic
Bui
ldin
g an
d G
roun
ds:
Sal
arie
s &
Wag
es
Oth
er E
xpen
ses
BO
RO
UG
H O
F M
AD
ISO
N
CU
RR
EN
T F
UN
D
ST
A T
EM
EN
T O
F E
XP
EN
DIT
UR
ES
-R
EG
UL
AT
OR
Y B
AS
IS
YE
AR
EN
DE
D D
EC
EM
BE
R 3
1, 2
018
(Con
tinu
ed)
App
ropr
iati
ons
Bud
get
Aft
er
Pai
d or
Exp
ende
d B
y
Bud
get
Mod
ific
atio
n C
harg
ed
Res
erve
d
$ 97
,420
.00
$ 97
,420
.00
$ 96
,462
.00
$ 95
8.00
12,5
00.0
0 12
,500
.00
10,1
76.2
2 2,
323.
78
60,0
00.0
0 60
,000
.00
60,0
00.0
0
1,44
6,62
1.00
1,
446,
621.
00
1,39
4,91
7.79
51
,703
.21
70,3
50.0
0 70
,350
.00
61,6
10.3
6 8,
739.
64
126,
314.
00
126,
314.
00
126,
210.
70
103.
30
1,55
5,08
2.00
1,
555,
082.
00
1,34
8,67
9.00
20
6,40
3.00
332,
600.
00
332,
600.
00
242,
850.
13
89,7
49.8
7
280,
007.
00
280,
007.
00
262,
001.
89
18,0
05.1
1
115,
300.
00
115,
300.
00
112,
107.
01
3,19
2.99
118,
150.
00
118,
150.
00
114,
118.
41
4,03
1.59
1,65
7,30
0.00
1,
657,
300.
00
1,41
4,29
3.64
24
3,00
6.36
100,
205.
00
100,
205.
00
95,9
83.1
2 4,
221.
88
110,
850.
00
110,
850.
00
87,2
12.4
9 23
,637
.51
A-3
3 o
f9
Une
xpen
ded
Bal
ance
Can
cell
ed
A-3 3 of 9
Ope
rati
ons
Wit
hin
"CA
PS
" (c
onti
nued
):
PU
BL
IC W
OR
KS
FU
NC
TIO
NS
(co
ntin
ued)
:
Veh
icle
Mai
nten
ance
:
Sal
arie
s &
Wag
es
Oth
er E
xpen
ses
HE
AL
TH
AN
D H
UM
AN
SE
RV
ICE
S F
UN
CT
ION
S:
Boa
rd o
f H
ealt
h:
Sal
arie
s &
Wag
es
Oth
er E
xpen
ses
Ani
mal
Con
trol
Ser
vice
s:
Sal
arie
s &
Wag
es
Oth
er E
xpen
ses
Civ
ic C
ente
r:
Oth
er E
xpen
ses
PA
RK
AN
D R
EC
RE
AT
ION
FU
NC
TIO
NS
:
Rec
reat
ion
and
Pla
ygro
unds
:
Sal
arie
s &
Wag
es
Oth
er E
xpen
ses
Sen
ior
Cit
izen
s' P
rogr
ams:
Sal
arie
s &
Wag
es
Oth
er E
xpen
ses
Tee
n C
ente
r:
Oth
er E
xpen
ses
Par
ks C
omm
itte
e:
Oth
er E
xpen
ses
OT
HE
R C
OM
MO
N O
PE
RA
TIN
G F
UN
CT
ION
S:
Cel
ebra
tion
of
Pub
lic
Eve
nts,
Ann
iver
sary
or
Hol
iday
:
Oth
er E
xpen
ses
Mun
icip
al C
ourt
:
Oth
er E
xpen
ses
BO
RO
UG
H O
F M
AD
ISO
N
CU
RR
EN
T F
UN
D
ST
AT
EM
EN
T O
F E
XP
EN
DIT
UR
ES
-R
EG
UL
AT
OR
Y B
AS
IS
YE
AR
EN
DE
D D
EC
EM
BE
R 3
1, 2
018
(Con
tinu
ed)
App
ropr
iati
ons Bud
get
Aft
er
Pai
d or
Exp
ende
d B
y
Bud
get
Mod
ific
atio
n C
harg
ed
Res
erve
d
$ 35
2,83
8.00
$
352,
838.
00
$ 33
7,26
2.21
$
15,5
75.7
9
251,
000.
00
251,
000.
00
228,
369.
88
22,6
30.1
2
52,9
09.0
0 52
,909
.00
52,9
09.0
0
235,
125.
00
235,
125.
00
145,
799
.44
89,3
25.5
6
2,00
0.00
2,
000.
00
2,00
0.00
10,0
00.0
0 10
,000
.00
7,50
0.00
2,
500.
00
35,0
00.0
0 35
,000
.00
31,3
55.3
2 3,
644.
68
51,6
50.0
0 51
,650
.00
51,3
25.4
3 32
4.57
131,
250.
00
131,
250.
00
125,
207.
18
6,04
2.82
105,
496.
00
105,
496.
00
99,9
72.9
9 5,
523.
01
16,2
00.0
0 16
,200
.00
15,6
19.2
2 58
0.78
20,0
00.0
0 20
,000
.00
19,9
98.0
0 2.
00
18,4
60.0
0 18
,460
.00
13,7
25.0
0 4,
735.
00
15,9
00.0
0 15
,900
.00
10,2
05.1
1 5,
694.
89
17,6
07.0
0 17
,607
.00
17,6
07.0
0
A-3
4 o
f9
Une
xpen
ded
Bal
ance
Can
cell
ed
A-3 4 of 9
BO
RO
UG
H O
F M
AD
ISO
N
CU
RR
EN
T F
UN
D
ST
AT
EM
EN
T O
F E
XP
EN
DIT
UR
ES
-R
EG
UL
AT
OR
Y B
AS
IS
YE
AR
EN
DE
D D
EC
EM
BE
R 3
1, 2
018
(Con
tinu
ed)
App
ropr
iati
ons Bud
get
Aft
er
Pai
d or
Exp
ende
d B
y
Bud
get
Mod
ific
atio
n C
harg
ed
Res
erve
d
Ope
rati
ons
Wit
hin
"CA
PS
" (C
onti
nued
):
OT
HE
R C
OM
MO
N O
PE
RA
TIN
G F
UN
CT
ION
S (
cont
inue
d):
Insu
ranc
e:
Gen
eral
Lia
bili
ty
Wor
kers
Com
pens
atio
n
Em
ploy
ee G
roup
Hea
lth
Hea
lth
Ben
efit
Wai
ver
ST A
TE
UN
IFO
RM
CO
NS
TR
UC
TIO
N C
OD
E:
Sta
te U
nifo
rm C
onst
ruct
ion
Cod
e:
Sal
arie
s &
Wag
es
Oth
er E
xpen
ses
UN
CL
AS
SIF
IED
:
Sal
arie
s &
Wag
es A
djus
tmen
t P
rogr
am
UT
ILIT
Y E
XP
EN
SE
S A
ND
BU
LK
PU
RC
HA
SE
S:
Ele
ctri
city
Tel
epho
ne
Gas
Sew
erag
e P
roce
ssin
g an
d D
ispo
sal
Gas
olin
e
Tot
al -
Ope
rati
ons
Wit
hin
"CA
PS
"
Con
ting
ent
Tot
al -
Ope
rati
ons
Wit
hin
"CA
PS
" In
clud
ing
Con
ting
ent
Det
ail:
Sal
arie
s an
d W
ages
Oth
er E
xpen
ses
Incl
udin
g C
onti
ngen
t
$ 39
5,85
0.00
250,
000.
00
1, 7
54,0
00.0
0
60,0
00.0
0
811,
703.
00
129,
050.
00
20,0
00.0
0
365,
000.
00
54,0
00.0
0
88,0
00.0
0
15,0
00.0
0
226,
600.
00
17,7
94,1
19.0
0
50,0
00.0
0
17,8
44,1
19.0
0
9,83
4,48
2.00
8,00
9,63
7.00
$ 33
0,85
0.00
250,
000.
00
1, 7
54,0
00.0
0
60,0
00.0
0
811,
703.
00
194,
050.
00
20,0
00.0
0
365,
000.
00
54,0
00.0
0
88,0
00.0
0
15,0
00.0
0
226,
600.
00
17,7
94,1
19.0
0
50,0
00.0
0
17,8
44,1
19.0
0
9,83
4,48
2.00
8,00
9,63
7.00
$ 30
6,99
5.09
250,
000.
00
1,65
8,20
2. 73
59,8
42.1
3
781,
148.
14
161,
134.
82
264,
440.
63
22,5
54.9
6
62,7
19.4
7
11,3
00.0
0
171,
052.
78
16,1
02,1
42.9
2
2.00
16,1
02,1
44.9
2
9,32
2,52
5.57
6,77
9,61
9.35
$ 23
,854
.91
95,7
97.2
7
157.
87
30,5
54.8
6
32,9
15.1
8
20,0
00.0
0
100,
559.
37
31,4
45.0
4
25,2
80.5
3
3,70
0.00
55,5
47.2
2
1,69
1,97
6.08
49,9
98.0
0
1,74
1,97
4.08
511,
956.
43
1,23
0,01
7.65
A-3
5 o
f9
Une
xpen
ded
Bal
ance
Can
cell
ed
A-3 5 of 9
ST
AT
UT
OR
Y E
XP
EN
DIT
UR
ES
:
Pub
lic
Em
ploy
ees'
Ret
irem
ent
Sys
tem
Soc
ial
Sec
urit
y S
yste
m (
O.A
.S.I
.)
Pol
ice
and
Fir
eman
's R
etir
emen
t S
yste
m o
f New
Jer
sey
Une
mpl
oym
ent
Insu
ranc
e
Def
ined
Con
trib
utio
n R
etir
emen
t P
rogr
am
Tot
al S
tatu
tory
Exp
endi
ture
s -
Mun
icip
al
Wit
hin
"CA
PS
"
Tot
al G
ener
al A
ppro
pria
tion
s fo
r M
unic
ipal
Pur
pose
s W
ithi
n "C
AP
S"
Ope
rati
ons
Exc
lude
d fr
om "
CA
PS
":
San
itat
ion:
Mad
ison
-Cha
tham
Joi
nt M
eeti
ng
Mai
nten
ance
of
Fre
e P
ubli
c L
ibra
ry (
c. 8
2, P
.L.
1985
):
Oth
er E
xpen
ses
Oth
er E
xpen
ses
-T
echn
olog
y
Tax
App
eal
Res
erve
Inte
r-M
unic
ipal
Hea
lth
Con
trac
ts f
or L
ocal
Com
mun
ity
Hea
lth
Ser
vice
s:
Boa
rd o
f H
ealt
h:
Sal
arie
s &
Wag
es
Inte
r-M
unic
ipal
Con
trac
t fo
r T
ax A
sses
sor
Ser
vice
s:
Sal
arie
s &
Wag
es
Inte
r-M
unic
ipal
Con
trac
t fo
r Jo
int
Cou
rt:
Sal
arie
s &
Wag
es
Oth
er E
xpen
ses
BO
RO
UG
H O
F M
AD
ISO
N
CU
RR
EN
T F
UN
D
ST
AT
EM
EN
T O
F E
XP
EN
DIT
UR
ES
-R
EG
UL
AT
OR
Y B
AS
IS
YE
AR
EN
DE
D D
EC
EM
BE
R 3
1, 2
018
(Con
tinu
ed)
App
ropr
iati
ons
Exp
ende
d B
y
$
Bud
get
380,
000.
00
490,
000.
00
1,02
0,00
0.00
50,0
00.0
0
18,0
00.0
0
1,95
8,00
0.00
19,8
02,1
19.0
0
1, 1
30,0
00.0
0
1,43
0,98
1.00
110,
000.
00
75,0
00.0
0
285,
000.
00
88,0
00.0
0
469,
007.
00
115,
993.
00
$
Bud
get
Aft
er
Mod
ific
atio
n
375,
000.
00
490,
000.
00
1,02
0,00
0.00
50,0
00.0
0
23,0
00.0
0
1,95
8,00
0.00
19,8
02, 1
19.0
0
1,13
0,00
0.00
1,43
0,98
1.00
110,
000.
00
75,0
00.0
0
285,
000.
00
88,0
00.0
0
469,
007.
00
115,
993.
00
$
Pai
d or
Cha
rged
364,
549.
65
456,
674.
33
1,01
7,50
5.53
20, 1
17.2
5
1,85
8,84
6.76
17,9
60,9
91.6
8
896,
174.
51
1,43
0,98
1.00
110,
000.
00
75,0
00.0
0
252,
621.
72
87,9
14.7
1
429,
724.
30
99,4
99.1
6
$
Res
erve
d
10,4
50.3
5
33,3
25.6
7
2,49
4.47
50,0
00.0
0
2,88
2.75
99,1
53.2
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ance
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cell
ed
A-3 6 of 9
Ope
rati
ons
Exc
lude
d fr
om "
CA
PS
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onti
nued
):
Pub
lic
and
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vate
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gram
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ffse
t by
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enue
s:
Alc
ohol
and
Dru
g A
buse
Gra
nt (
M.A
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: S
tate
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re -
2018
Bor
ough
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Sup
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Res
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Mad
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Mai
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t F
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& W
ages
Oth
er E
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ses
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al O
pera
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xclu
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From
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A-3
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f9
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Bal
ance
C
ance
lled
A-3 7 of 9
Mun
icip
al D
ebt
Ser
vice
Exc
lude
d fr
om "
CA
PS
":
Pay
men
t o
f Bon
d P
rinc
ipal
Inte
rest
on
Bon
ds
N.J
. E
nvir
onm
enta
l In
fras
truc
ture
Tru
st L
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Inte
rest
on
Loa
n
Pri
ncip
al o
n L
oan
Tot
al M
unic
ipal
Deb
t S
ervi
ce E
xclu
ded
from
"C
AP
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Subt
otal
Gen
eral
App
ropr
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ons
Res
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for
Unc
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Tax
es
Tot
al G
ener
al A
ppro
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tion
s
BO
RO
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OR
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Mod
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Ref
. A
A-3
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f9
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cell
ed
$ 3,
308.
79
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63
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5.42
4,19
5.42
$ 4,
195.
42
A-3 8 of 9
BOROUGH OF MADISON CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS YEAR ENDED DECEMBER 31, 2018
(Continued)
Analysis of
Adopted Budget Added by N.J.S.A. 40A:4-87
Cash Disbursed
Encumbrances Due to Federal and State Grant Fund Reserve for Tax Appeals
Reserve for Uncollected Taxes
Less: Appropriation Refunds
A
Budget After
Modification
$ 31,533,601.52
29,796.41
$ 31,563,397.93
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
$
$
A-3
9 of9
Paid or
Charged
26,258,930.66
1,224,356.60 206,297.93
75,000.00 1, 733,000.00
29,497,585.19
101,575.60
29,396,009.59
BOROUGH OF MADISON COUNTY OF MORRIS
2018 TRUST FUNDS
B 1 of2
BOROUGH OF MADISON
TRUST FUNDS COMPARATIVE BALANCE SHEET- REGULATORY BASIS
ASSETS
Animal Control Fund: Cash and Cash Equivalents
Open Space Trust Fund: Cash and Cash Equivalents
Due from Current Fund Due from General Capital Fund
Affordable Housing Development Trust Fund:
Cash and Cash Equivalents
Other Trust Funds: Cash and Cash Equivalents
Due from Current Fund Due from General Capital Fund
TOT AL ASSETS
LIABILITIES, RESERVES AND FUND BALANCE
Animal Control Fund:
Due to State of New Jersey Due to Current Fund
Prepaid Licenses
Reserve for Animal Control Fund Expenditures
Open Space Trust Fund: Reserve for Open Space Trust
Ref.
B-4 $
B-4
A
c
B-4
B-4
A
c
$
$
A
B-5
December 31, 2018 2017
66,684.61 $ 68,551.48
66,684.61 68,551.48
1,617 ,520.68 999,057.98 3,218.14 4,358.21
15,485.71 95,034.19 1,636,224.53 1,098,450.38
3,270,224.01 2,077,076.22 3,270,224.01 2,077,076.22
1,208,564.07 1,539,935.43 123.00
199.44 199.44 1,208,886.51 1,540, 134.87
6,182,019.66 $ 4,784,212.95
472.40 $ 543.80
19,103.41 22,045.04
4,995.60 5,713.20
42,113.20 40,249.44
66,684.61 68,551.48
1,636,224.53 1,098,450.38 1,636,224.53 1,098,450.38
BOROUGH OF MADISON
TRUST FUNDS COMPARATIVE BALANCE SHEET - REGULATORY BASIS
B 2 of2
December 31,
LIABILITIES, RESERVES AND FUND BALANCE
Affordable Housing Development Trust Fund:
Due to General Capital Fund Reserve for Affordable Housing Development
Other Trust Funds: Due to Current Fund Due to State of New Jersey:
Marriage License Fees
Unallocated Receipts Reserve for:
State Unemployment Insurance
Developers' Escrows
Recycling Chapter 14 P.O.A.A. Community Development
Atlantic Healthcare Dodge Foundation for Police
Tax Sale Premium Community Relations
Jacob Henry Perkins Police Outside Duty
State Law Enforcement
MAASA Trust Playground Fund
Fire Department Community Gardens Project
Station Area Fund
Recreation
TOTAL LIABILITIES, RESERVES AND FUND BALANCE
A
2018
$ 55,000.00
3,215,224.01 3,270,224.01
300.00
139,040.96
516,934.68
3,889.40 9,047.69 5,483.21
500.00
937.63 74,000.00
126.00
21,229.54 225,564.67
7,599.69 832.45
12,654.44
2,773.02 28,098.50
126,047.40
33,827.23 1,208,886.51
$ 6,182,019.66
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT
2017
$ 2,077,076.22
2,077,076.22
22,130.75
425.00
1.00
177,287.22
803,005.44 3,889.40
9,250.69 5,483.21
500.00 937.63
74,000.00
126.00 21,459.25
200,832.54 19,314.51
1,787.45
12,654.44 7,785.66
24,982.13 148,642.52
5,640.03
1,540, 134.87
$ 4,784,212.95
BOROUGH OF MADISON ASSESSMENT TRUST FUND
STATEMENT OF FUND BALANCE - REGULATORY BASIS YEAR ENDED DECEMBER 31, 2018
NOT APPLICABLE
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
B-1
BOROUGH OF MADISON
ASSESSMENT TRUST FUND
STATEMENT OF REVENUE - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2018
NOT APPLICABLE
ASSESSMENT TRUST FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2018
NOT APPLICABLE
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
B-2
B-3
BOROUGH OF MADISON COUNTY OF MORRIS
2018 GENERAL CAPITAL FUND
BOROUGH OF MADISON
GENERAL CAPITAL FUND COMPARATIVE BALANCE SHEET - REGULATORY
c
December 31, Ref. 2018
ASSETS
Cash and Cash Equivalents C-2 $ 4,619,222.98 Due from Current Fund A 66,490.67 Due from Affordable Housing Trust Fund B 55,000.00
Deferred Charges to Future Taxation:
Funded 19,576,259.98 Unfunded C-4 8,283,481.00
TOT AL ASSETS $ 32,600,454.63
LIABILITIES, RESERVES AND FUND BALANCE
Serial Bonds Payable C-8 $ 17,556,000.00 NJ Environmental Infrastructure Loans Payable:
Trust Loan C-9 686,770.34
Fund Loan C-9 1,333,489.64 Improvement Authorizations:
Funded C-5 2,633,451.62 Unfunded C-5 8,273,781.00
Due to Open Space Trust Fund B 15,485.71 Due to Other Trust Fund - Fire Department Trust B 199.44 Capital Improvement Fund C-6 2,006,03 7 .27 Due to Museum of Early Trades and Crafts 19,086.26 Reserve for MCJM Expansion and Operations 66,663.00 Fund Balance C-1 9,490.35
TOTAL LIABILITIES, RESERVES AND FUND BALANCE $ 32,600,454.63
THE ACCOMPANYING NOTES TO FINANCIAL ST A TEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT
2017
$ 3,819,141.31 124,455.99
21,306,373.35 3,513,481.00
$ 28,763,451.65
$ 19,156,000.00
725,842.50
1,424,530.85
2,171,766.99 3,503,781.00
95,034.19 199.44
1,657,720.07 19,086.26
9,490.35
$ 28,763,451.65
BOROUGH OF MADISON GENERAL CAPITAL FUND
STATEMENT OF FUND BALANCE - REGULATORY BASIS
Balance December 31, 201 7 c
Balance December 31, 2018 c
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT
C-1
$ 9,490.35
$ 9,490.35
BOROUGH OF MADISON COUNTY OF MORRIS
2018 WATER UTILITY FUND
BOROUGH OF MADISON
WATER UTILITY FUND
D 1 of2
COMPARATIVE BALANCE SHEET -REGULATORY BASIS
December 31, Ref. 2018 2017
ASSETS
Operating Fund: Cash and Cash Equivalents D-4 $ 2,012,672.24 $ 1, 784,352.66 Change Fund 25.00 25.00
2,012,697.24 1,784,377.66 Due From Water Utility Capital Fund D 1,451.06 651.70
2,014,148.30 1,785,029.36
Receivables with Full Reserves:
Consumer Accounts Receivable D-6 171,509.93 180,385.69
171,509.93 180,385.69
Total Operating Fund 2, 185,658.23 1,965,415.05
Capital Fund: Cash and Cash Equivalents D-4 2,505,896.07 2,673,429.27 Fixed Capital D-7 14,937,757.83 13,987,757.83 Fixed Capital Authorized and Uncompleted D-8 2,285,326.24 2,055,326.24
Total Capital Fund 19,728,980.14 18,716,513.34
TOTAL ASSETS $ 21,914,638.37 $ 20,681,928.39
BOROUGH OF MADISON
WATER UTILITY FUND COMPARATIVE BALANCE SHEET-REGULATORY BASIS
(Continued)
D
2 of2
December 31,
LIABILITIES, RESERVES AND FUND BALANCE
Operating Fund:
Appropriation Reserves:
Unencumbered Encumbered
Due to Current Fund Reserve for Receivables
Reserve for Security Deposits Fund Balance
Total Operating Fund
Capital Fund: Improvement Authorizations - Funded Capital Improvement Fund Due to Water Utility Operating Fund
Reserve for: Amortization Automated Meter Reading
Deferred Reserve for Amortization
Total Capital Fund
TOT AL LIABILITIES, RESERVES AND FUND BALANCE
D-3;D-9
D-3;D-9
A D
D-1
D-10 D-11
D
D-12
2018
$ 412,930.75
98,792.75 511,723.50
0.03 171,509.93
100.00 1,502,324.77
2,185,658.23
1,408,278.13
296,166.88
1,451.06
14,937,757.83
800,000.00 2,285,326.24
19,728,980.14
$ 21,914,638.37
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT
2017
$ 375,585.08 110,101.29
485,686.37
1,134.35 180,385.69
100.00 1,298,108.64
1,965,415.05
1,296,610.69 376,166.88
651.70
13,987,757.83 1,000,000.00
2,055,326.24
18,716,513.34
$ 20,681,928.39
BOROUGH OF MADISON WATER UTILITY OPERA TING FUND
D-1
COMPARATIVE STATEMENT OF OPERA TIO NS AND CHANGE IN FUND BALANCE -REGULATORY BASIS
Year Ended December 31, Ref. 2018
Revenue and Other Income Realized
Fund Balance Utilized $ 122,132.00 Rents 2,494,872.60 Miscellaneous Revenue 215,120.22 Other Credits to Income:
Unexpended Balance of Appropriation Reserves 398,355.31
Total Income 3,230,480.13
Expenditures
Budget Expenditures: Operating 1,600,132.00 Capital Improvements 900,000.00 Deferred Charges and Statutory Expenditures 204,000.00
Total Expenditures 2,704,132.00
Excess in Revenue 526,348.13
Fund Balance
Balance January 1 1,298, 108.64 1,824,456.77
Decreased by: Utilized as Anticipated Revenue 122,132.00 Anticipated as Current Fund Budget Revenue 200,000.00
Balance December 31 D $ 1,502,324. 77
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT
2017
$ 700,000.00 2,522,228.14
63,118.76
500,276.30
3,785,623.20
1,621,598.00 1,500,000.00
194,500.00
3,316,098.00
469,525.20
1,928,5 83 .44 2,398, 108.64
700,000.00 400,000.00
$ 1,298, 108.64
WATER UTILITY OPERA TING FUND
STATEMENT OF REVENUE - REGULATORY BASIS
Operating Fund Balance Anticipated
Water Rents Miscellaneous Revenue
Analysis of Realized Revenue
Miscellaneous Revenue:
Interest on Investments: Water Utility Operating Fund
Other Miscellaneous Revenue
Connection Fees Water Line Protection Program
Interest on Investments:
YEAR ENDED DECEMBER 31, 2018
Anticipated
$ 122,132.00 2,522,000.00
60,000.00
$ 2,704,132.00
$
$
$
Realized
122,132.00 2,494,872.60
215,120.22
2,832, 124.82
36,977.73 5,654.01
159,142.00 11,152.90
D-2
Excess or Deficit*
$ 27,127.40 *
155,120.22
$ 127,992.82
$ 212,926.64
Due from Water Utility Capital Fund 2,193.58
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT
$ 215,120.22
BOROUGH OF MADISON WATER UTILITY OPERATING FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS YEAR ENDED DECEMBER 31, 2018
D-3
Appropriations Expended by
Operating: Salaries and Wages
Other Expenses
Capital Improvements: Capital Improvement Fund
Statutory Expenditures: Contribution to:
Public Employees' Retirement System
Social Security System (0.A.S.1.)
$
Budget
587,932.00
1,012,200.00
900,000.00
149,000.00 55,000.00
$ 2,704,132.00
Cash Disbursed Encumbrances Payable
$
Budget After Modi-
fication
587,932.00 1,012,200.00
900,000.00
149,000.00
55,000.00
$ 2,704,132.00
D
$
Paid or
Charged
537,953.16
663,094.67
900,000.00
149,000.00 41,153.42
$ 2,291,201.25
$ 2,192,408.50
98,792.75
$ 2,291,201.25
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
Reserved
$ 49,978.84
349,105.33
13,846.58
$ 412,930.75
D
BOROUGH OF MADISON COUNTY OF MORRIS
2018 ELECTRIC UTILITY FUND
BOROUGH OF MADISON
ELECTRIC UTILITY FUND
COMPARATIVE BALANCE SHEET- REGULATORY BASIS
E 1of2
December 31, Ref. 2018 2017
ASSETS
Operating Fund:
Cash and Cash Equivalents E-5 $ 12,032,386.18 $ 11,702,473.88
Change Fund 25.00 25.00
12,032,411.18 11,702,498.88
Due from Payroll Agency Account 5,567.76 5,567.76 Due from Electric Utility Capital Fund E 1,984.04 632.52
12,039,962.98 11,708,699.16
Receivables and Other Assets With Full Reserves:
Consumer Accounts Receivable E-8 976,529.27 947,116.76
Total Receivables and Other Assets
With Full Reserves 976,529.27 947,116.76
Total Operating Fund 13,016,492.25 12,655,815.92
Capital Fund: Cash and Cash Equivalents E-5 2,791,610.63 2,456,125.66
Fixed Capital E-9 12,991,083.51 12,684,971.61
Fixed Capital Authorized and Uncompleted E-10 1,670,000.00 1,440,000.00
Total Capital Fund 17,452,694.14 16,581,097.27
TOTAL ASSETS $ 30,469,186.39 $ 29,236,913.19
BOROUGH OF MADISON
ELECTRIC UTILITY FUND COMPARATIVE BALANCE SHEET - REGULATORY BASIS
(Continued)
E 2 of2
December 31,
LIABILITIES, RESERVES AND FUND BALANCE
Operating Fund:
Appropriation Reserves:
Encumbered Unencumbered
Reserve for Receivables Reserve for Security Deposit
Fund Balance
Total Operating Fund
Capital Fund: Improvement Authorizations:
Funded Due to Electric Utility Operating Fund
Capital Improvement Fund
Reserve for: Amortization Deferred Amortization Electric Utility Substation
Total Capital Fund
E-4;E-11
E-4;E-11
E
E-1
E-12
E E-13
E-14
TOTAL LIABILITIES, RESERVES AND FUND BALANCE
2018
$ 665,860.25 1,541,067.15 2,206,927.40
976,529.27 1,260.00
9,831,775.58
13,016,492.25
931,481.03 1,984.04
958,145.56
12,991,083.51 1,670,000.00
900,000.00
17,452,694.14
$ 30,469' 186.39
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT
2017
$ 744,899.40 1,569,445.55
2,314,344.95
947,116.76 1,260.00
9,393,094.21
12,655,815.92
j
956,235.68 632.52
899,257.46
12,684,971.61 1,440,000.00
600,000.00
16,581,097.27
$ 29,236,913.19
BOROUGH OF MADISON
ELECTRIC UTILITY OPERA TING FUND COMPARATNE STATEMENT OF OPERATIONS AND CHANGE IN
FUND BALANCE - REGULATORY BASIS
E-1
Year Ended December 31 Ref. 2018
Revenue and Other Income Realized
Metered Service $ 21,706,561.55
Miscellaneous Revenue 209,797.77
Other Credits to Incomes: Unexpended Balance of Appropriation Reserves 1,501,065.05
Total Income 23,417,424.37
Expenditures
Operating 14,553,090.00
Capital Improvements 895,000.00 Deferred Charges and Statutory Expenditures 485,500.00
Total Expenditures 15,933,590.00
Excess in Revenue 7,483,834.37
Fund Balance
Balance January 1 9,393,094.21 16,876,928.58
Decreased by:
Anticipated as Current Fund Budget Revenue 7,045,153.00
Balance December 31 E $ 9,831, 775.58
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT
2017
$ 21,053,483.68
81,255.13
842,152.40
21,976,891.21
14,108,037.00
895,000.00 459,825.00
15,462,862.00
6,514,029.21
10,013,515.00
16,527,544.21
7,134,450.00
$ 9,393,094.21
BOROUGH OF MADISON
ELECTRIC UTILITY CAPITAL FUND
STATEMENT OF CAPITAL FUND BALANCE - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2018
NOT APPLICABLE
ELECTRIC UTILITY OPERATING FUND
STATEMENT OF REVENUE - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2018
Metered Service
Miscellaneous Revenue
Analysis of Realized Revenue
Miscellaneous Revenue:
Miscellaneous Receipts
Interest Earned:
Electric Utility Operating Fund
Interest Earned:
$
$
$
Anticipated Realized
15,903,590.00 $ 21,706,561.55
30,000.00 209,797.77
15,933,590.00 $ 21,916,359.32
62,861.60
144,328.56
$ 207,190.16
Due from Electric Utility Capital Fund 2,607.61
Metered Services:
Consumer Accounts Receivable
State Aid - Life Line Credits
$ 209,797.77
$ 21,690,249.05
16,312.50
$ 21,706,561.55
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
E-2
E-3
Excess or
Deficit*
$ 5,802,971.55
179,797.77
$ 5,982,769.32
BOROUGH OF MADISON ELECTRIC UTILITY OPERATING FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS YEAR ENDED DECEMBER 31, 2018
E-4
Appropriations Expended by Budget
After Modi- Paid or Budget fication Charged
Operating: Salaries and Wages $ 1,802,115.00 $ 1,802,115.00 $ 1,712,679.42
Other Expenses 12,750,975.00 12,750,975.00 11,304,863.20
Capital Improvements: Capital Improvement Fund 595,000.00 595,000.00 595,000.00
Reserve for Substation Replacement 300,000.00 300,000.00 300,000.00
Statutory Expenditures: Contribution to:
Public Employees' Retirement System 345,500.00 345,500.00 345,500.00
Social Security System 140,000.00 140,000.00 134,480.23
$ 15,933,590.00 $ 15,933,590.00 $ 14,392,522.85
Ref.
Ref.
Cash Disbursed $ 13,959,915.01
Reserve for Encumbrances E 665,860.25
14,625,775.26
Less: Refunds 233,252.41
$ 14,392,522.85
THE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
Reserved
$ 89,435.58 1,446,111.80
5,519.77
$ 1,541,067.15
E
BOROUGH OF MADISON COUNTY OF MORRIS
2018 PUBLIC ASSISTANCE FUND
(NOT APPLICABLE)
BOROUGH OF MADISON COUNTY OF MORRIS
2018 GENERAL FIXED ASSETS ACCOUNT GROUP
BOROUGH OF MADISON
GENERAL FIXED ASSETS ACCOUNT GROUP COMPARATIVE BALANCE SHEET- REGULATORY BASIS
G
December 31, 2018
ASSETS
Land $ 33,249,900.00
Buildings 25,053,725.73
Improvements Other than Buildings 3,999,484.72 Machinery and Equipment 12,517,964.00
TOT AL ASSETS $ 74,821,074.45
RESERVES
Reserve for General Fixed Assets $ 74,821,074.45
THE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
ARE AN INTEGRAL PART OF THIS STATEMENT
2017
$ 37,472,600.00
25,053,725.73 3,999,484.72
11,227,142.00
$ 77,752,952.45
$ 77,752,952.45
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018
Note 1: Summary of Significant Accounting Policies
A. Reporting Entity
Except as noted below, the financial statements of the Borough of Madison include every board, body, officer or commission supported and maintained wholly or in part by funds appropriated by the Borough of Madison, as required by N.J.S. 40A:5-5. Accordingly, the financial statements of the Borough of Madison do not include the operations of the municipal library, fire company or first aid squad.
Governmental Accounting Standards Board ("GASB") Codification Section 2100, "Defining the Financial Reporting Entity" establishes standards to determine whether a governmental component unit should be included in the financial reporting entity. Component units are legally separate organizations for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the nature and significance of their relationship with a primary government are such that exclusion would cause the reporting entity's financial statements to be misleading. The primary government is financially accountable if it appoints a voting majority of the organization's governing body and (1) it is able to itnpose its will on that organization or (2) there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government. A legally separate, tax-exempt organization should be reported as a component unit of a reporting entity if all of the following criteria are met: (1) The economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the primary government, its component units, or its constituents. (2) The primary government, or its component units, is entitled to, or has the ability to otherwise access, a majority of the economic resources received or held by the separate organization. (3). The economic resources received or held by an individual organization that the specific primary government, or its component units, is entitled to, or has the ability to otherwise access, are significant to that primary government. As the financial reporting entity was established in accordance with New Jersey statutes, the requirements of GASB Codification Section 2100 were not followed and, accordingly, the reporting entity could be different from accounting p'rinciples generally accepted in the United States of America.
B. Description of Funds
The accounting policies of the Borough conform to the accounting practices applicable to municipalities which have been prescribed or permitted by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the "Division"). Such practices are designed primarily for determining compliance with legal provisions and budgetary restrictions and as a means of reporting on the stewardship of public officials with respect to public funds. Under this method of accounting, the Borough of Madison accounts for its financial transactions through the following separate funds:
Current Fund - Resources and expenditures for governmental operations of a general nature, including federal and state grant funds.
Trust Funds - Receipts, custodianship and disbursement of funds in accordance with the purpose for which each reserve was created.
General Capital Fund - Receipt and disbursement of funds for the acquisition of general capital facilities, other than those acquired in the Current Fund.
1
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
Note 1: Summary of Significant Accounting Policies (Cont'd)
B. Description of Funds (Cont'd)
Water Utility Operating and Capital Funds - Account for the operations and acquisition of capital facilities of the municipally owned Water Utility.
Electric Utility Operating and Capital Funds - Account for the operations and acquisition of capital facilities of the municipally owned Electric Utility.
General Fixed Assets Account Group - Estimated values of land, buildings and certain fixed assets of the Borough as discussed in Note lE "General Fixed Assets".
C. Basis of Accounting
Basis of accounting refers to when revenue and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied.
The more significant accounting policies in New Jersey follow.
Revenue is recorded when received in cash except for certain amounts which may be due from the State of New Jersey and for the prepayment of future years' revenue. Grant revenue is realized in the Operating Funds when it is budgeted and in the Capital Funds when improvements are authorized. The amounts recorded as property taxes and consumer accounts receivable have not been included in revenue. Amounts that are due to the municipality, which are susceptible of accrual, are recorded as receivables with offsetting reserves in the Current Fund.
Expenditures are charged to operations based on budgeted amounts. Exceptions to this general rule include:
1. Accumulated unpaid vacation, sick pay and other employee amounts are not accrued.
2. Prepaid expenses, such as insurance premiums applicable to subsequent periods, are charged to current budget appropriations in total.
3. Principal and interest on long-term debt are recognized when due.
Expenditures, if any, in excess of appropriations, appropriation reserves or ordinances become deferred charges which must be raised by future taxes. Outstanding encumbrances at December 31 are reported as a cash liability in the financial statements and constitute part of the statutory appropriation reserve balance. Appropriation reserves covering unexpended appropriation balances are automatically created at December 31 of each year and recorded as liabilities, except for amounts which may be cancelled by the governing body. Appropriation reserves are available, until lapsed at the close of the succeeding year, to meet specific claims, commitments or contracts incurred during the preceding fiscal year. Lapsed appropriation reserves are recorded as income.
2
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
Note 1: Summary of Significant Accounting Policies (Cont'd)
C. Basis of Accounting (Cont'd)
Had the Borough's financial statements been prepared under accounting principles generally accepted in the United States of America, encumbrances would not be considered as expenditures; appropriation reserves would not be recorded; revenue susceptible to accrual would have been reflected without offsetting reserves; Federal and State grants and assistance would be recognized when earned, not when budgeted; inventories would not be reflected as expenditures at the time of purchase; investments would generally be stated at fair value; fixed assets purchased by the Water and Electric Utility Capital Funds would be depreciated and the Borough's net OPEB liability and net pension liability and related deferred inflows and outflows, where applicable, would be recorded.
The cash basis of accounting is followed in the Trust and Capital Funds.
D. Deferred Charges to Future Taxation - The General Capital Fund balance sheet includes both funded and unfunded deferred charges. Funded means that bonds have been issued and are being paid off on a serial basis. Unfunded means that debt has been authorized but not permanently financed. A municipality can eliminate an unfunded deferred charge by raising it in the budget, by collecting a grant, or by issuing bonds, loans or capital lease purchase agreements.
E. Other Significant Accounting Policies
Management Estimates - The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents - Amounts include petty cash, change funds, amounts on deposit, and short-term investments with original maturities of three months or less.
Investments - Investments are stated at cost.
Allowance for Uncollectible Accounts - No allowance for uncollectible accounts has been recorded as all amounts are considered collectible.
Compensated Absences - Expenditures relating to unused vested accumulated vacation and sick pay are not recorded until paid.
Foreclosed Property - Foreclosed Property is recorded in the Current Fund at the assessed valuation when such property was acquired and is fully reserved.
Interfunds - Interfund receivables in the Current Fund are recorded with offsetting reserves which are created by charges to operations. Income is recognized in the year the receivables are liquidated. Interfund receivables in the other funds are not offset by reserves.
Inventories of Supplies - The cost of inventories of supplies for all funds is recorded as expenditures at the time individual items are purchased. The cost of inventories is not included on the various balance sheets.
3
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
Note 1: Summary of Significant Accounting Policies (Cont'd)
E. Other Significant Accounting Policies (Cont'd)
Grants Receivable - Grants receivable represent the total grant awards less amounts collected to date. Because the amount of grant funds to be collected are dependent on the total costs eligible for reimbursement, the actual amount collected may be less than the total amount awarded.
General Fixed Assets - In accordance with New Jersey Administrative Code Accounting Requirements, as promulgated by Division of Local Government Services, General fixed assets are recorded at cost except for land and buildings, which are recorded at estimated historical cost as estimated by the independent appraisal company which conducted the inventory of the Borough's assets. Infrastructure assets are not included in general fixed assets; maintenance and minor repairs and replacements, which do not improve or extend the lives of the respective assets, are expensed currently. Donated fixed assets are valued at their fair market value on the date donated. No depreciation has been provided on general fixed assets. The total value recorded for general fixed assets is offset by a "Reserve for General Fixed Assets". When properties are retired or otherwise disposed of, the asset and the reserve are adjusted accordingly.
Assets recorded in the General Fixed Assets Account Group may also be recorded in the Current Fund, General Capital Fund and Utility Funds. The values recorded in the General Fixed Asset Account Group and the Current and Capital Funds may not always agree due to differences in valuation methods, timing or recognition of assets and the recognition of infrastructures. Fixed assets are reviewed for impairment.
Property and equipment purchased by the Utility Funds are recorded in the Utility Capital accounts at cost and are not adjusted for dispositions and abandonments. The amounts shown do not purport to represent replacement costs or current value. Contributions in aid of construction are not capitalized. The balances in the Reserve for Amortization and Deferred Reserve for Amortization accounts in the Utility Capital Funds represent charges to operations for the costs of the acquisition of property, equipment and improvements. The Utility Funds do not record depreciation on fixed assets.
F. Budget/Budgetary Control - Annual appropriated budgets are usually prepared in the first quarter for Current Operating, Utility Operating and Open Space Trust Funds. The budgets are submitted to the governing body and the Division of Local Government Services. Budgets are prepared using the cash basis of accounting. The legal level of budgetary control is established at the line item accounts within each fund. Line item accounts are defined as the lowest (most specific) level of detail as established pursuant to the flexible chart of accounts referenced in N.J.S.A. 40A. All budget amendments/transfers must be approved by the Borough during the year.
Note 2: Long-Term Debt
The Local Bond Law governs the issuance of bond to finance general Borough capital expenditures. All bonds are retired in serial installments within the statutory period of usefulness. All bonds issued by the Borough are general obligation bonds. The Borough's full faith and credit and taxing power has been pledged to the payment of the general obligation debt principal and interest.
4
Note 2: Long-Term Debt (Cont'd)
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
Summary of Municipal Debt
December 31, 2018 2017
Issued: General:
2016
Bonds and Notes $ 17,556,000.00 $ 19,156,000.00 $ 20,696,000.00 NJ Environmental Infrastructure
Loans Payable 2,020,259.98 2,150,373.35 2,280,386.24 Total Issued 19,576,259.98 21,306,373.35 22,976,386.24
Authorized but not Issued: General:
Bonds and Notes 8,283,481.00 3,513,481.00 3,544,378.00 Total Authorized but not Issued 8,283,481.00 3,513,481.00 3,544,378.00
Net Bonds, Notes and Loans Issued and Authorized but not Issued $ 27,859,740.98 $ 24,819,854.35 $ 26,520,764.24
Summary of Municipal Debt Issued and Outstanding - Current Year
Balance Balance 12/31/2017 Additions Retirements 12/3112018
Serial Bonds: General Capital Fund $19,156,000.00 $1,600,000.00 $17 ,556,000.00
Loans Payable: General Capital Fund:
NJ Environmental Infrastructure Loans 2,150,373.35 130,113.37 2,020,259.98
Total $21,306,373.35 $ -0- $1,730,113.37 $19,576,259.98
Summary of Municipal Debt Issued and Outstanding - Prior Year
Balance Balance 12/31/2016 Additions Retirements 12/31/2017
Serial Bonds: General Capital Fund $20,696,000.00 $ 1,540,000.00 $19,156,000.00
Loans Payable: General Capital Fund:
NJ Environmental Infrastructure Loans 2,280,386.24 130,012.89 2,150,373.35
Total $22,976,386.24 $ -0- $1,670,012.89 $21,306,373.35
5
Note 2: Long-Term Debt (Cont'd)
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
Summary of Statutory Debt Condition - Annual Debt Statement
The summarized statement of debt condition, which follows, is prepared in accordance with the required method of setting up the Annual Debt Statement and indicates a statutory net debt of 0.680%.
Gross Debt Deductions NetDebt
Local School District Debt $ 34,050,000.00 $ 34,050,000.00 General Debt 27,859, 740.98 $ 27,859,740.98
$ 61,909,740.98 $ 34,050,000.00 $ 27,859,740.98
Net Debt $27,859,740.98 divided by Equalized Valuation Basis per N.J.S. 40A:2-2 as amended, $4,097,936,786.33 = 0.680%.
Borrowing Power Under N.J.S. 40A:2-6 As Amended
3-1/2% Average Equalized Valuation of Real Property
NetDebt
Remaining Borrowing Power
$ 143,427,787.52
27,859,740.98
$ 115,568,046.54
The foregoing debt information is in agreement with the Annual Debt Statement filed by the Chief Financial Officer.
Analysis of Debt Issued and Outstanding at December 31, 2018
General Capital Serial Bonds Payable
Final Interest Balance Description Maturity Rate Dec. 31, 2018
General Improvement Bonds of 2013 08/15/33 3.00%-4.00% $ 3,001,000.00 Refunding Bonds of 2014 10/15/28 4.50%-5.00% 14,555,000.00
$ 17,556,000.00
General Capital NJ Environmental Infrastructure Loan Payable (Trust Loan)
Final Interest Balance Description Maturity Rate Dec. 31, 2018
Trust Loan 1 08/01/29 3.00%-5.00% $ 270,000.00 Trust Loan 2 08/01/30 2.830%-4.510% 61,770.34 Trust Loan 3 08/01/34 4.00%-5.00% 355,000.00
$ 686,770.34
6
Note 2: Long-Term Debt (Cont'd)
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
General Capital NJ Environmental Infrastructure Loan Payable (Fund Loan)
Description
Fund Loan 1 Fund Loan 2 Trust Loan 3
Total Debt Issued and Outstanding
N.J. Environmental Infrastructure Loans
Final Maturity
08/01/29 08/01/30 08/01/34
$
$
$
Balance Dec. 31, 2018
228,203.50 53,606.14
1,051,680.00
1,333,489.64
19,576,259.98
The Borough of Madison/Madison-Chatham Joint Meeting entered into six loan agreements with the State of New Jersey, acting by and through the NJ Department of Environmental Protection Fund (the "Fund"), and the NJ Environmental Infrastructure Trust (the "Trust") which are recorded in the General Capital Fund. The loan agreements were obtained to finance a portion of the cost of improvements to the MadisonChatham Joint Meeting's Molitor Water Pollution Control Facility. A portion of the Fund loan portion of Fund Loan 1 was funded through the American Recovery and Reinvestment Act. Even though the Borough is responsible for the repayment of the loans, the Borough does not receive or expend any of the loan funds. The Madison-Chatham Joint Meeting is responsible for the draw downs and expenditures of loan funds.
At December 31, 2017, the Madison-Chatham Joint Meeting has borrowed or "drawn down" all of the $2,677,906 Loan funds necessary to complete the improvements to the Madison-Chatham Joint Meeting's Molitor Water Pollution Control Facility partially funded with the Loan funds. Principal payments to the Fund for the loan will continue on a semiannual basis until August 1, 2034 at zero interest. Principal payments to the Trust for the loan will continue on an annual basis until August 1, 2034.
Also, an annual administrative fee of fifteen one hundredths of one percent (.15%) of the initial principal amount of the loan or such lesser amount, if any, as the Trust may approve from time to time is payable on these loans.
Schedule of Annual Debt Service for Principal and Interest for the Next Five Years and Thereafter for Bonds and Loans Issued and Outstanding:
General Year Principal Interest Total
2019 $ 1,740,228.62 $ 838,848.44 $ 2,579 ,077 .06 2020 1,810,355.91 761,271.14 2,571,627.05 2021 1,835,497.43 679,979.62 2,515,477.05 2022 1,845,653.85 597,823.22 2,443,477.07 2023 1,840,822.21 515,004.84 2,355,827.05
2024-2028 9,165,157.34 1,344, 702.98 10,509,860.32 2029-2033 1,242,814.62 106,107.10 1,348,921.72
2034 95,730.00 1,200.00 96,930.00
$ 19,576,259.98 $ 4,844,937.34 $ 24,421,197.32
7
Note 2: Long-Term Debt (Cont'd)
Net Pension Liability
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
The Borough's share of the State of New Jersey Public Employees' Retirement System's (PERS) net pension liability was calculated to be $19,901,368 at June 30, 2018. The Borough's share of the State of New Jersey Police and Firemen's Retirement System's (PFRS) net pension liability was calculated to be $16,075,058 at June 30, 2018. See Note 4 for further information on the PERS and PFRS.
Net OPEB Liability
The State's proportionate share of the net OPEB liability attributable to the Borough at June 30, 2017 was $19,055,911. See Note 18 for further information on these net OPEB liabilities.
Note 3: Fund Balance Appropriated
Fund balances at December 31, 2018, which are appropriated and included in the Current, Water Utility Operating, and Electric Utility Operating Fund adopted budgets for the year ending December 31, 2019, are as follows:
Current Fund Water Utility Fund Electric Utility Fund
Note 4: Pension Plans
$ 5,090,000.25 261,796.00
6,673, 184.00
Borough employees participate in one of the two contributory, defined benefit public employee retirement systems: the State of New Jersey Public Employee's Retirement System (PERS) or the State of New Jersey Police and Firemen's Retirement System (PFRS); or the Defined Contribution Retirement Program (DCRP), a tax-qualified defined contribution money purchase pension plan under Internal Revenue Code (IRC) 401(a).
A. Public Employees' Retirement System (PERS)
Plan Description
The State of New Jersey, Public Employees' Retirement System (PERS) is a cost-sharing multipleemployer defined benefit pension plan administered by the State of New Jersey, Division of Pensions and Benefits (the Division). For additional information about the PERS, please refer to the Division's Comprehensive Annual Financial Report (CAFR) which can be found at www.state.nj.us/treasury/pensions/ financial-reports.shtml.
Benefits Provided
The vesting and benefit provisions are set by N.J.S.A. 43:15A. PERS provides retirement, death and disability benefits. All benefits vest after ten years of service, except for medical benefits, which vest after 25 years of service or under the disability provisions of PERS. The following represents the membership tiers for PERS:
8
Note 4: Pension Plans (Cont'd)
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
A. Public Employees' Retirement System (PERS) (Cont'd)
Benefits Provided (Cont'd)
Tier Definition
1 Members who were enrolled prior to July 1, 2007 2 Members who were eligible to enroll on or after July 1, 2007 and prior to November 2, 2008 3 Members who were eligible to enroll on or after November 2, 2008 and prior to May 22, 2010 4 Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011 5 Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits of 1/55th of final average salary for each year of service credit is available to Tiers 1 and 2 members upon reaching age 60 and to Tier 3 members upon reaching age 62. Service retirement benefits of 1/601h of final average salary for each year of service credit is available to Tier 4 members upon reaching age 62 and to Tier 5 members upon reaching age 65. Early retirement benefits are available to Tiers 1 and 2 members before reaching age 60, to Tiers 3 and 4 with 25 or more years of service credit before age 62 and Tier 5 with 30 or more years of service credit before age 65. Benefits are reduced by a fraction of a percent for each month that a member retires prior to the age at which a member can receive full early retirement benefits in accordance with their respective tier. Tier 1 members can receive an unreduced benefit from age 55 to age 60 if they have at least 25 years of service. Deferred retirement is available to members who have at least 10 years of service credit and have not reached the service retirement age for the respective tier.
Contributions
The contribution policy for PERS is set by N.J.S.A. 43:15A and requires contributions by active members and contributing members. The local employers' contribution amounts are based on an actuarially determined rate which includes the normal cost and unfunded accrued liability. Chapter 19, P.L. 2009 provided an option for local employers of PERS to contribute 50% of the normal and accrued liability contribution amounts certified for payments due in State fiscal year 2009. Such employers will be credited with the full payment and any such amounts will not be included in their unfunded liability. The actuaries will determine the unfunded liability of those retirement systems, by employer, for the reduced normal and accrued liability contributions provided under this law. This unfunded liability is being paid by the employer in level annual payments over a period of 15 years, which began with the payments due in the fiscal year ended June 30, 2012 and are adjusted by the rate of return on the actuarial value of assets. Borough contributions to PERS amounted to $973,239.65 for 2018.
The employee contribution rate was 7.34% effective July 1, 2017 and increased to 7.50% effective July 1, 2018. Subsequent increases after October 1, 2011 were being phased in over 7 years effective on each July 1st to bring the total pension contribution rate to 7 .5% of base salary as of July 1, 2018.
Pension Liabilities and Pension Expense
At June 30, 2018, the Borough's liability was $19,901,368 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2017 which was rolled forward to June 30, 2018.
9
Note 4: Pension Plans (Cont'd)
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
A. Public Employees' Retirement System (PERS) (Cont'd)
Pension Liabilities and Pension Expense (Cont'd)
The Borough's proportion of the net pension liability was based on a projection of the Borough's long-term share of contributions to the pension plan relative to the projected contributions of all participating members, actuarially determined. At June 30, 2018, the Borough's proportion was 0.101 %, which was a decrease of 0.003% from its proportion measured as of June 30, 2017.
For the year ended December 31, 2018, the Borough recognized actual pension expense in the amount of $973,239.65.
Actuarial Assumptions
The total pension liability for the June 30, 2018 measurement date was determined by an actuarial valuation as of July 1, 2017 which was rolled forward to June 30, 2018. This actuarial valuation used the following actuarial assumptions:
Inflation Rate Salary Increases:
Through 2026 Thereafter
Investment Rate of Return
2.25%
1.65 - 4.15% based on age 2.65 - 5.15% based on age 7.00%
Pre-retirement mortality rates were based on the RP-2000 Employee Pre-retirement Mortality Table for male and female active participants. For local employees, mortality tables are set back 2 years for males and 7 years for females. In addition, the tables provide for future improvements in mortality from the base year of 2013 using a generational approach based on the Conduent modified 2014 projection scale. Postretirement mortality rates were based on the RP-2000 Combined Healthy Male and Female Mortality Tables (set back 1 year for males and females) for service retirements and beneficiaries of former members. In addition, the tables for service retirements and beneficiaries of former members provide for future improvements in mortality from 2012 to 2013 using Projection Scale AA and using a generational approach based on the Conduent 2014 projection scale thereafter. Disability retirement rates used to value disabled retirees were based on the RP-2000 Disabled Mortality Table (set back 3 years for males and set forward one year for females).
The actuarial assumptions used in the July 1, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2011 to June 30, 2014. It is likely that future experience will not exactly conform to these assumptions. To the extent that actual experience deviates from these assumptions, the emerging liabilities may be higher or lower than anticipated. The more the experience deviates, the larger the impact on future financial statements.
Long Term Expected Rate of Return
In accordance with State statute, the long-term expected rate of return on pension plan investments (7 .00% at June 30, 2018) is determined by the State Treasurer, after consultation with the Directors of the Division oflnvestments and Division of Pensions and Benefits, the Board of Trustees and the actuaries.
10
Note 4: Pension Plans (Cont'd)
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
A. Public Employees' Retirement System (PERS) (Cont'd)
Long Term Expected Rate of Return (Cont'd)
The long-term expected rate of return was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in PERS' target asset allocation as of June 30, 2018 are summarized in the following table:
Discount Rate
Asset Class
Risk Management Strategies Cash Equivalents U.S. Treasuries Investment Grade Credit High Yield Global Diversified Credit Credit Oriented Hedge Funds Debt Related Private Equity Debt Related Real Estate Private Real Asset Equity Related Real Estate U.S. Equity Non-U.S. Developed Market Equity Emerging Markets Equity BuyoutsNenture Capital
Target Allocation
5.00% 5.50% 3.00%
10.00% 2.50% 5.00% 1.00% 2.00% 1.00% 2.50% 6.25%
30.00% 11.50% 6.50% 8.25%
Long-Term Expected Real Rate of Return
5.51% 1.00% 1.87% 3.78% 6.82% 7.10% 6.60%
10.63% 6.61%
11.83% 9.23% 8.19% 9.00%
11.64% 13.08%
The discount rate used to measure the total pension liability was 5.66% as of June 30, 2018. This single blended discount rate was based on the long-term expected rate of return on pension plan investments of 7.00% and a municipal bond rate of 3.87% as of June 30, 2018 based on the Bond Buyer Go 20 Bond Municipal Bond Index which includes tax-exempt general obligation municipal bonds with an average rating of AA/ Aa or higher. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made based upon the contribution rate in the most recent fiscal year. The local employers contributed 100% of their actuarially determined contributions. Based on those assumptions, the plan's fiduciary net position was projected to be available to make projected future benefit payments of current plan members through June 30, 2046. Therefore, the long-term expected rate of return on plan investments was applied to projected benefit payments through June 30, 2046, and the municipal bond rate was applied to projected benefit payments after that date in determining the total pension liability.
11
Note 4: Pension Plans (Cont'd)
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
A. Public Employees' Retirement System (PERS) (Cont'd)
Sensitivity of the Borough's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the Borough's proportionate share of the collective net pension liability as of June 30, 2018 calculated using the discount rate as disclosed below, as well as what the Borough's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentagepoint lower or I-percentage-point higher than the current rate:
Borough's proportionate share of the Net Pension Liability
Pension Plan Fiduciary Net Position
$
June 30, 2018 1%
Decrease (4.66%)
25,023,678 $
Current 1% Discount Rate Increase
(5.66%) (6.66%)
19,901,368 $ 15,604,079
Detailed information about the pension plan's fiduciary net position is available in the separately issued PERS financial statements.
B. Police and Firemen's Retirement System (PFRS)
Plan Description
The State of New Jersey, State of New Jersey Police and Firemen's Retirement System (PFRS), is a costsharing multiple-employer defined benefit pension plan administered by the State of New Jersey Division of Pensions and Benefits (the Division). For additional information about the PFRS, please refer to the Division's Comprehensive Annual Financial Report (CAFR) which can be found at www.state.nj.us/treasury/ pensions/financial-reports.shtml.
Benefits Provided
The vesting and benefit provisions are set by N.J.S.A. 43:16A. The PFRS provides retirement as well as death and disability benefits. All benefits vest after ten years of service, except disability benefits which vest after 4 years of service. The following represents the membership tiers for PFRS:
Tier Definition
1 Members who were enrolled prior to May 22, 2010 2 Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011 3 Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits are available at age 55 and are generally determined to be 2% of final compensation for each year of creditable service, as defined, up to 30 years plus 1 % for each year of service in excess of 30 years.
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Note 4: Pension Plans (Cont'd)
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
B. Police and Firemen's Retirement System (PFRS) (Cont'd)
Benefits Provided (Cont'd)
Members may seek special retirement after achieving 25 years of creditable service, in which benefits would equal 65% (tiers 1 and 2 members) and 60% (tier 3 members) of final compensation plus 1 % for each year of creditable service over 25 years but not to exceed 30 years. Members may elect deferred retirement benefits after achieving ten years of service, in which case benefits would begin at age 55 equal to 2% of final compensation for each year of service.
Contributions
The contribution policy for PFRS is set by N.J.S.A. 43:16A and requires contributions by active members and contributing members. The Local employers' contribution amounts are based on an actuarially determined rate which includes the normal cost and unfunded accrued liability. Chapter 19, P.L. 2009 provided an option for local employers of PFRS to contribute 50% of the normal and accrued liability contribution amounts certified for payments due in State fiscal year 2009. Such employers will be credited with the full payment and any such amounts will not be included in their unfunded liability. The actuaries will determine the unfunded liability of the retirement system, by employer, for the reduced normal and accrued liability contributions provided under this law. This unfunded liability is being paid by the employer in level annual amounts over a period of 15 years, which began with the payments due in the fiscal year ended June 30, 2012 and are adjusted by the rate ofretum on the actuarial value of the assets.
Special Funding Situation
Under N.J.S.A. 43:16A-15, local participating employers are responsible for their own contributions based on actuarially determined amounts, except where legislation was passed which legally obligated the State if certain circumstances occurred. The legislation which legally obligates the State is as follows: Chapter 8, P.L. 2000, Chapter 318, P.L. 2001, Chapter 86, P.L. 2001, Chapter 511, P.L. 1991, Chapter 109, P.L. 1979, Chapter 247, P.L. 1993 and Chapter 201, P.L. 2001. The amounts contributed on behalf of the local participating employers under this legislation is considered to be a special funding situation as defined by GASB Statement No. 68 and the State is treated as a nonemployer contributing entity. Since the local participating employers do not contribute under this legislation directly to the plan (except for employer specified financed amounts), there is no net pension liability or deferred outflows or inflows to report in the financial statements of the local participating employers related to this legislation. However, the notes to the financial statements of the local participating employers must disclose the portion of the nonemployer contributing entities' total proportionate share of the collective net pension liability that is associated with the local participating employer. The June 30, 2018 State special funding situation net pension liability amount is the accumulated difference between the annual actuarially determined State obligation under the special funding situation and the actual State contribution through the valuation date. The State special funding situation pension expense for the fiscal year ended June 30, 2018 is the actuarially determined contribution amount that the State owes for the fiscal year ending June 30, 2018. The pension expense is deemed to be a State administrative expense due to the special funding situation.
Borough contributions to PFRS amounted to $1,017,505.53 for the year ended December 31, 2018. During the fiscal year ended June 30, 2018, the State of New Jersey contributed $129,318 to the PFRS for normal pension benefits on behalf of the Borough, which is less than the contractually required contribution of $258,636.
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Note 4: Pension Plans (Cont'd)
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
B. Police and Firemen's Retirement System (PFRS) (Cont'd)
Special Funding Situation (Cont'd)
The employee contributions for PFRS are 10.00% of employees' annual compensation, as defined.
Pension Liabilities and Pension Expense
At June 30, 2018, the Borough's liability for its proportionate share of the net pension liability was $16,075,058. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2017 which was rolled forward to June 30, 2018. The Borough's proportion of the net pension liability was based on a projection of the Borough's long-term share of contributions to the pension plan relative to the projected contributions of all participating members, actuarially determined. At June 30, 2018, the Borough's proportion was 0.119%, which was an increase of 0.004% from its proportion measured as of June 30, 2017.
Additionally, the State's proportionate share of the net pension liability attributable to the Borough is $2,183,531 as of June 30, 2018. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2017 which was rolled forward to June 30, 2018. The State's proportionate share of the net pension liability associated with the Borough was based on a projection of the Borough's long-term share of contributions to the pension plan relative to the projected contributions of all participating members, actuarially determined. At June 30, 2018, the State's proportion was 0.119%, which was an increase of 0.004% from its proportion measured as of June 30, 2017, which is the same proportion as the Borough's.
Borough's Proportionate Share of the Net Pension Liability
State's Proportionate Share of the Net Pension Liability Associated with the Borough
Total Net Pension Liability
$ 16,075,058
2,183,531
$ 18,258,589
For the year ended December 31, 2018, the Borough recognized total pension expense of $1,017,505.53.
Actuarial Assumptions
The total pension liability for the June 30, 2018 measurement date was determined by an actuarial valuation as of July 1, 2017 which was rolled forward to June 30, 2018. This actuarial valuation used the following actuarial assumptions:
Inflation Rate Salary Increases:
Through 2026 Thereafter
Investment Rate of Return
2.25%
2.10% - 8.98% based on age 3.10% - 9.98% based on age 7.00%
Pre-retirement mortality rates were based on the RP-2000 Combined Healthy mortality tables projected on a generational basis from the base year of 2000 to 2013 using Projection Scale BB and the Conduent modified 2014 projection scale thereafter.
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Note 4: Pension Plans (Cont'd)
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
B. Police and Firemen's Retirement System (PFRS) (Cont'd)
Actuarial Assumptions (Cont'd)
For pre-retirement accidental mortality, a custom table with representative rates was used and there is no mortality improvement assumed. Post-retirement mortality rates for male service retirements are based on the RP-2000 Combined Healthy Mortality Tables projected on a generational basis using Projection Scale AA from base year of 2012 to 2013 and the Conduent modified 2014 projection scale thereafter. Postretirement mortality rates for female service retirements and beneficiaries were based on the RP-2000 Combined Healthy Mortality Tables projected on a generational basis from the base year of 2000 to 2013 using Projection Scale BB and the Conduent modified 2014 projection scales thereafter. Disability retirement rates were based on a custom table with representative rates and no mortality improvement assumed.
The actuarial assumptions used in the July 1, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2010 to June 30, 2013.
Long Term Expected Rate of Return
In accordance with State statute, the long-term expected rate of return on pension plan investments (7.00% at June 30, 2018) is determined by the State Treasurer, after consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the Board of Trustees and the actuaries. The longterm expected rate of return was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in PFRS' target asset allocation as of June 30, 2018 are summarized in the following table:
Long-Term Target Expected Real
Asset Class Allocation Rate of Return
Risk Management Strategies 5.00% 5.51% Cash Equivalents 5.50% 1.00% U.S. Treasuries 3.00% 1.87% Investment Grade Credit 10.00% 3.78% High Yield 2.50% 6.82% Global Diversified Credit 5.00% 7.10% Credit Oriented Hedge Funds 1.00% 6.60% Debt Related Private Equity 2.00% 10.63% Debt Related Real Estate 1.00% 6.61% Private Real Asset 2.50% 11.83% Equity Related Real Estate 6.25% 9.23% U.S. Equity 30.00% 8.19% Non-U.S. Developed Market Equity 11.50% 9.00% Emerging Markets Equity 6.50% 11.64% BuyoutsN enture Capital 8.25% 13.08%
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Note 4: Pension Plans (Cont'd)
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 20I8 (Continued)
B. Police and Firemen's Retirement System (PFRS) (Cont'd)
Discount Rate - PFRS
The discount rate used to measure the total pension liability was 6.51% as of June 30, 20I8. This single blended discount rate was based on the long-term expected rate of return on pension plan investments of 7.00% and a municipal bond rate of 3.87% as of June 30, 20I8 based on the Bond Buyer Go 20 Bond Municipal Bond Index which includes tax-exempt general obligation municipal bonds with an average rating of AA/ Aa or higher. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers and the nonemployer contributing entity will be made based on the contribution rate in the most recent fiscal year. The State employer contributed 50% of the actuarially determined contributions and the local employers contributed I 00% of their actuarially determined contributions. Based on those assumptions, the plan's fiduciary net position was projected to be available to make projected future benefit payments of current plan members through June 30, 2062. Therefore, the long-term expected rate of return on pension plan investments was applied to projected benefit payments through June 30, 2062, and the municipal bond rate was applied to projected benefit payments after that date in determining the total pension liability.
Sensitivity of the Total Net Pension Liability (including the State's proportionate share of the net pension liability attributable to the Borough) to Changes in the Discount Rate
The following presents the total net pension liability (including the State's proportionate share of the net pension liability attributable to the Borough) as of June 30, 20 I 8 calculated using the discount rate as disclosed above, as well as what the collective net pension liability would be if it were calculated using a discount rate that is I -percentage-point lower or I -percentage-point higher than the current rate:
June 30, 20I8
Borough's proportionate share of the NPL and the State's proportionate share of the Net Pension Liability associated with the Borough
Plan Fiduciary Net Position - PFRS
I% Decrease (5.5I %)
$ 24,436,856
Current Discount Rate
(6.5I%)
$ I 8,258,589
I% Increase (7.5I%)
$ 13,I62,645
Detailed information about the PFRS's fiduciary net position is available in the separately issued PFRS financial statements.
C. Defined Contribution Retirement Program (DCRP)
Prudential Financial jointly administers the DCRP investments with the NJ Division of Pensions and Benefits. If an employee is ineligible to enroll in the PERS or PFRS, the employee may be eligible to enroll in the DCRP. DCRP provides eligible members with a tax-sheltered, defined contribution retirement benefit, along with life insurance and disability coverage. Vesting is immediate upon enrollment for members of the DCRP.
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Note 4: Pension Plans (Cont'd)
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
C. Defined Contribution Retirement Program (DCRP) (Cont'd)
The State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, issues publicly available financial reports that include the financial statements and required supplementary information of the DCRP. The financial reports may be obtained by writing to the State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, PO Box 295, Trenton, New Jersey, 08625-0295.
Employers are required to contribute at an actuarially determined rate. Employee contributions are based on percentages of 5.50% for DCRP of employees' annual compensation, as defined. The DCRP was established July 1, 2007, under the provisions of Chapter 92, P.L. 2007 and Chapter 103, P.L. 2007 and expanded under the provisions of Chapter 89, P.L. 2008. Employee contributions for DCRP are matched by a 3% employer contribution.
For DCRP, the Borough recognized pension expense of $20,117.25 for the year ended December 31, 2018. Employee contributions to DCRP amounted to $27,173.11 for the year ended December 31, 2018.
Note 5: Local School District Taxes
Regulations provide for the deferral of not more than 50% of the annual levy when school taxes are raised for a school year and have not been requisitioned by the school district.
The Borough of Madison has elected not to defer school taxes.
Note 6: Accrued Sick and Vacation Benefits
The Borough permits employees to accrue a limited amount of unused vacation and sick pay, which may be taken as time off or paid at a later date at an agreed-upon rate. It is estimated that the current cost of such unpaid compensation would approximate $2,513,659.24 at December 31, 2018. This amount is not reported either as an expenditure or a liability. The Borough has a written policy that establishes the maximum amount of sick days to be paid out at retirement to be 100 days and that vacation days must be used during the year in which it is earned or by March 31st of the following year. It is expected that the cost of such unpaid compensation would be included in the Borough's budget operating expenditures in the year in which it is used.
Note 7: Selected Tax Information
Property taxes are levied as of January 1 on property values assessed as of the previous calendar year. The tax levy is divided into two billings. The first billing is an estimate of the current year's levy based on the prior year's taxes. The second billing reflects adjustments to the current year's actual levy. The final tax bill is usually mailed on or before June 14th along with the first half estimated tax bills for the subsequent year. The first half estimated taxes are divided into two due dates, February 1 and May 1. The final tax bills are also divided into two due dates, August 1 and November 1. A ten-day grace period is usually granted before the taxes are considered delinquent and the imposition of interest charges. A penalty may be assessed for any unpaid taxes in excess of $10,000 at December 31 of the current year. Unpaid taxes of the prior year may be placed in lien at a tax sale held after April 1 and through December.
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BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
Note 7: Selected Tax Information (Cont'd)
Comparative Schedule of Tax Rate Information
Tax Rate
Apportionment of Tax Rate Municipal County - Regular County Open Space Local School
Assessed Valuations 2018
2018
$ 1.923
.433
.286
.010 1.194
$ 3,542,403,000.00
$
2017
1.908
.429
.290
.011 1.178
2017 $ 3,512,196,300.00 2016
Comparison of Tax Levies and Collection Currently
A study of this tabulation could indicate a possible trend in future tax levies.
2016
$ 1.875
.421
.275
.010 1.169
$ 3,482,257,100.00
Currently Cash Percentage of
Year Tax Levy Collections Collection
2018 $ 68,464,097. 72 $ 68,172,237.75 99.57% 2017 67,474,457.43 67' 154,434.05 99.52% 2016 65,901,333.96 65,572,250.30 99.50%
Also, increases in future tax levies can also be warranted if revenue sources outside of those directly generated by the municipality, such as federal or state aid, should decline without corresponding decreases in budgeted expenditures.
Note 8: Cash and Cash Equivalents and Investments
Cash and cash equivalents include petty cash, change funds, amounts in deposits, money market accounts, and short-term investments with original maturities of three months or less.
Investments are stated at cost. The Borough classifies certificates of deposit which have original maturity dates of more than three months but less than twelve months from the date of purchase, as investments.
GASB requires disclosure of the level of custodial credit risk assumed by the Borough in its cash, cash equivalents and investments, if those items are uninsured or unregistered. Custodial credit risk is the risk that in the event of a bank failure, the government's deposits may not be returned.
Interest Rate Risk - In accordance with its cash management plan, the Borough ensures that any deposit or investment matures within the time period that approximates the prospective need for the funds, deposited or invested, so that there is not a risk to the market value of such deposits or investments.
Credit Risk - The Borough limits its investments to those authorized in its cash management plan which are those permitted under state statute as detailed on the following page.
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BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
Note 8: Cash and Cash Equivalents and Investments (Cont'd)
Custodial Credit Risk-The Borough's policy with respect to custodial credit risk requires that the Borough ensures that Borough funds are only deposited in financial institutions in which NJ municipalities are permitted to invest their funds.
Deposits:
New Jersey statutes require that municipalities deposit public funds in public depositories located in New Jersey which are insured by the Federal Deposit Insurance Corporation, or by any other agency of the United States that insures deposits made in public depositories. Municipalities are also permitted to deposit public funds in the State of New Jersey Cash Management Fund.
New Jersey statutes require public depositories to maintain collateral for deposits of public funds that exceed insurance limits as follows:
The market value of the collateral must equal 5% of the average daily balance of collected public funds on deposit, and
In addition to the above collateral requirement, if the public funds deposited exceed 75% of the capital funds of the depository, the depository must provide collateral having a market value at least equal to 100% of the amount exceeding 75%.
All collateral must be deposited with the Federal Reserve Bank, the Federal Home Loan Bank Board or a banking institution that is a member of the Federal Reserve System and has capital funds of not less than $25,000,000.
Investments:
New Jersey statutes permit the Borough to purchase the following types of securities:
(1) Bonds or other obligations of the United States of America or obligations guaranteed by the United States of America;
(2) Government money market mutual funds;
(3) Any obligation that a federal agency or a federal instrumentality has issued in accordance with an act of Congress, which security has a maturity date not greater than 397 days from the date of purchase, provided that such obligation bears a fixed rate of interest not dependent on any index or other external factor;
( 4) Bonds or other obligations of the local unit or bonds or other obligations of school districts of which the local unit is a part or within which the school district is located;
(5) Bonds or other obligations, having a maturity date not more than 397 days from the date of purchase, issued by New Jersey school districts, municipalities, counties, and entities subject to the "Local Authorities Fiscal Control Law" P.L. 1983, c. 313 (C.40A:5A-1 et seq.) Other bonds or obligations having a maturity date not more than 397 days from the date of purchase may be approved by the Division of Local Government Services in the Department of Community Affairs for investment by local units;
19
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEARENDEDDECEMBER31, 2018 (Continued)
Note 8: Cash and Cash Equivalents and Investments: (Cont'd)
Investments: (Cont'd)
( 6) Local government investment pools;
(7) Deposits with the State of New Jersey Cash Management Fund established pursuant to section 1 of P.L. 1977, c.281 (C.52:18A-90.4); or
(8) Agreements for the repurchase of fully collateralized securities if:
(a) the underlying securities are permitted investments pursuant to paragraphs (1) and (3) of this subsection a. or are bonds or other obligations, having a maturity date not more than 397 days from the date of purchase, issued by New Jersey school districts, municipalities, counties and entities subject to the "Local Authorities Fiscal Control Law", P.L. 1983 c.313 (C.40A:5A-1 et seq.);
(b) the custody of collateral is transferred to a third party;
(c) the maturity of the agreement is not more than 30 days;
( d) the underlying securities are purchased through a public depository as defined in section 1 of P.L. 1970, c.236 (C.17:9-41); and
( e) a master repurchase agreement providing for the custody and security of collateral is executed.
As of December 31, 2018, cash and cash equivalents of the Borough of Madison consisted of the following:
New Jersey Cash on Checking Cash Manage-
Fund Hand Accounts mentFund Totals
Current $ 600.00 $ 5,031,116.74 $10,098,294.86 $ 15,130,011.60 Animal Control 66,684.61 66,684.61 Open Space Trust 1,617,520.68 1,617,520.68 Affordable Housing Development Trust 3,270,224.01 3,270,224.01 Other Trust 1,208,564.07 1,208,564.07 General Capital 4,619,222.98 4,619,222.98 Water Utility Operating 25.00 2,012,672.24 2,012,697.24 Water Utility Capital 2,505,896.07 2,505,896.07 Electric Utility Operating 25.00 12,032,386.18 12,032,411.18 Electric Utility Capial 2,791,610.63 2,791,610.63
$ 650.00 $ 35,155,898.21 $10,098,294.86 $ 45,254,843.07
The Borough did not hold any investments during the year ended December 31, 2018. The carrying amount of the Borough of Madison's cash and cash equivalents at December 31, 2018 was $45,254,843.07 and the bank balance was $44,871,621.27. The $10,098,294.86 in the New Jersey Cash Management Fund is uninsured and unregistered.
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Note 9: Risk Management
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
The Borough is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters.
The Borough of Madison is a member of both the Morris County Municipal Joint Insurance Fund ("MCMJIF") and the North Jersey Municipal Employee Benefits Fund ("NJMEBF"). These funds are both an insured and self-administered group of municipalities established for the purpose of providing certain low-cost insurance coverage for member municipalities in order to keep local property taxes at a minimum.
The following coverages are offered by the MCMJIF to its members:
a.) Workers' Compensation and Employers' Liability b.) Liability Other Than Motor Vehicles c.) Property Damage Other Than Motor Vehicles d.) Motor Vehicle e.) Public Officials' Liability/Employment Practices Coverage f.) Environmental Coverage
The following health benefit coverages are offered by the NJMEBF to its members:
a.) Medical b.) Prescription c.) Dental
As a member of these Funds, the Borough could be subject to supplemental assessments in the event of deficiencies. If the assets of the Funds were to be exhausted, members would become responsible for their respective shares of the Fund's liabilities. There is a very narrow possibility that the MCMJIF will impose supplemental assessments. In the twenty-six year history of the MCMJIF, a supplemental assessment has never been declared.
The Funds can declare and distribute dividends to members upon approval of the State of New Jersey Department of Banking and Insurance. These distributions are divided amongst the members in the same ratio as their individual assessment relates to the total assessment of the membership body. In accordance with Statement No. 10 of the Governmental Auditing Standards Board, these distributions are used to reduce the amount recorded for membership expense in the year in which the distribution was declared. The MCMJIF has not declared dividends in the last six years and currently has no intention to reinstate the dividends. The Finance Committee of the MCMJIF has made this recommendation, which is embraced by the full membership.
The December 31, 2018 audit report for the NJMEBF was not available as of the date of this report. Selected summarized financial information for the MCMJIF as of December 31, 2018 and the NJMEBF as of December 31, 201 7 are as follows.
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BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
Note 9: Risk Management (Cont'd)
Note 10:
Morris County North Jersey Municipal Joint Municipal Employee Insurance Fund Benefits Fund
Total Assets $ 33,810,987 $ 24,792,222
Net Position $ 13,583,877 $ 18,577,048
Total Revenue $ 19,078,609 $ 42,868,531
Total Expenses $ 20,655,181 $ 38,584,808
Change in Net Position $ (1,576,572) $ 4,283,723
Members Dividends $ -0- $ 3,713,966
Financial statements for these funds are available at the Office of the Executive Director.
Morris County Municipal Joint Insurance Fund 9 Campus Drive, Suite 216 Parsippany, New Jersey 07054 (201) 881-7632
North Jersey Municipal Employee Benefits Fund 9 Campus Drive, Suite 216 Parsippany, New Jersey 07054 (201) 881-7632
New Jersey Unemployment Compensation Insurance
The Borough has elected to fund its New Jersey Unemployment Compensation Insurance under the "Benefit Reimbursement Method". Under this plan, the Borough is required to reimburse the New Jersey Unemployment Trust Fund for benefits paid to its former employees and charged to its account with the State. The Borough is billed quarterly for amounts due to the State.
The following is a summary of the interest earned and the ending balance of the Borough's expendable trust fund for the current and prior years:
Fiscal Borough Employee Interest Amount Ending Year Contributions Contributions Earned Reimbursed Balance
2018 $ -0- $ 18,875.40 $ 1,882.07 $ 59,003.73 $ 139,040.96 2017 50,000.00 17,451.28 981.55 49,088.08 177,287.22 2016 50,000.00 16,638.40 930.92 40,950.33 157,942.47
Contingent Liabilities
The Borough is also periodically involved in various other lawsuits arising in the normal course of business, which often include claims for property damage, personal injury, and various contract disputes. In the opinion of management, the ultimate outcome of these lawsuits will not have a material adverse effect on the Borough financial position as of December 31, 2018.
22
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
Note 10: Contingent Liabilities (Cont'd)
Note 11:
Amounts received or receivable from grantors, principally federal and state governments are subject to regulatory requirements and adjustments by the agencies. Any disallowed claims, including amounts previously recognized by the Borough as revenue would constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantors cannot be determined at this time, although Borough officials expect such amounts, if any, to be immaterial.
Various tax appeals on assessed valuations have been filed against the Borough and are awaiting tax court decisions. The ultimate outcome and effect of such appeals have not been determined; however, the Borough's Tax Assessor will aggressively defend the Borough's assessments. The Borough has established a reserve in the amount of $491,473.09 so as to provide for the full amount of this contingency.
Interfund Receivables and Payables
The following interfund balances remained on the balance sheet at December 31, 2018:
Interfund Interfund Fund Receivable Payable
Current Fund $ 19,103.44 $ 245,208.96 Federal and State Grant Fund 175,377.15 Animal Control Fund 19,103.41 Open Space Trust Fund 18,703.85 Affordable Housing Development Trust Fund 55,000.00 Other Trust Fund 322.44 General Capital Fund 121,490.67 15,685.15 Water Utility Operating Fund 1,451.06 0.03 Water Utility Capital Fund 1,451.06 Electric Utility Operating Fund 1,984.04 Electric Utility Capital Fund 1,984.04
$ 338,432.65 $ 338,432.65
The interfund receivable in the Current Fund is comprised of the statutory excess in the Reserve for the Animal Control Fund Expenditures due from the Animal Control Fund and anticipated revenue due from the Water Operating Fund. The interfund receivable in the Federal and State Grant Fund due from the Current Fund is for the receipt of grant funds directly deposited into the Current Fund. The interfund receivable in the Open Space Trust Fund is comprised of the 2018 added/omitted open space tax levy collected in the Current Fund and a prior year interfund not fully turned over from the General Capital Fund. The interfund receivable in the Other Trust Fund is a prior year interfund not turned over for improvement authorizations balance cancelled in the General Capital Fund which was funded by the Other Trust Funds and an interfund advanced to the Current Fund; net of interest earned. The interfund receivable in the General Capital Fund is a reserve for expansion, operation and maintenance of the Madison Chatham Joint Meeting collected in the Current Fund, net of interest earned in the General Capital Fund and improvement authorizations funded by the Affordable Housing Development Trust Fund. The interfund receivable in the Water Utility Operating Fund represents interest earned in the Water Utility Capital Fund, net of a prior year interfund advanced from the Water Utility Capital Fund. The interfund receivable in the Electric Utility Operating Fund represents interest earned in the Electric Utility Capital Fund, net of a prior year interfund advanced from the Electric Utility Capital Fund.
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Note 12: Related Party Transactions
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
The Mayor and Borough Council members also serve as members of the Madison-Chatham Joint Meeting. The Borough of Madison appropriated $1,130,000.00 and paid to the Joint Meeting $896,174.51in2018 for operating expenses. In addition, the Borough of Madison, together with the Borough of Chatham, has funded the improvement of the Joint Meeting wastewater treatment plant.
Note 13: Deferred Compensation
The Borough offers its employees a def erred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, which is administered by Lincoln Financial, permits participants to def er a portion of their salary until future years. Amounts def erred under the plan are not available to employees until termination, retirement, death or unforeseeable emergency.
Note 14: Economic Dependency
The Borough of Madison receives a substantial amount of support from federal and state governments. A significant reduction in the level of support, if this were to occur, may have an effect on the Borough's programs and activities.
Note 15: Open Space Trust Reserve
The Borough adopted an ordinance in 2003 to establish a "Municipal Open Space, Recreation, and Farmland and Historic Preservation Trust Fund," permitting the Borough to collect a tax of two cents (2 cents) per $100.00 of assessed valuation for the Open Space Trust Fund. The 2018 Open Space tax levy is $640,850.68 and the 2018 Open Space tax rate is $0.018. The balance in the Reserve for Open Space at December 31, 2018 is $1,636,224.53.
Note 16: Tax Abatements
As of December 31, 2018, the Borough provides a tax abatement to an educational institution in the Borough of Madison pursuant to a resolution of the governing body dated January 13, 2014 and agreement dated February 7, 2014. In consideration of the full abatement of taxes, the educational institution is required to make payments in lieu of taxes to the Borough in the aggregate initial 2014 annual amount of $38,500, which shall be increased by 2% each year thereafter. The tax abatement provided under the agreement shall remain in full force and effect for a period of twenty years, commencing on January 1, 2014 and concluding on December 31, 2033.
If the Borough's ability to collect the payments in lieu of taxes is challenged by the institution of legal action in Superior Court on or prior to February 28, 2014, then each of the parties shall have the right, on five days written notice to the other, to declare this agreement null and void. If either party declares this agreement to be null and void, then all parties shall have all rights and remedies available to them at law or equity, including the right of the educational institution to file a tax appeal in the New Jersey Tax Court.
The Borough recognized revenue in the amount of $42,090 ($20,837 received for 2018 and $21,254 received in advance in 2018 for 2019) from this annual service charge or payment in lieu of taxes which is recorded as an anticipated miscellaneous revenue in the Current Fund. The taxes which would have been paid on this property for 2018 without the abatement would have been $30,768 of which $6,928 would have been for the local municipal tax, minimum library tax and municipal open space tax.
24
Note 16: Tax Abatements (Cont'd)
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
As of December 31, 2018, the Borough provides a tax abatement to a charitable organization of longstanding in the Borough of Madison pursuant to a resolution of the governing body dated February 22, 2016 and agreement dated February 23, 2016. In consideration of the full abatement of taxes, the charitable organization is required to make payments in lieu of taxes to the Borough in the aggregate initial 2016 annual amount of $9,200, which shall be increased by 2% each year thereafter. The tax abatement provided under the agreement shall remain in full force and effect for a period of twenty years, commencing on January 1, 2016 and concluding on December 31, 2036. If the Borough's ability to collect the payments in lieu of taxes is challenged by the institution of legal action in Superior Court, then each of the parties shall have the right, on five days written notice to the other, to declare this agreement null and void. If either party declares this agreement to be null and void, then all parties shall have all rights and remedies available to them at law or equity, including the right of the charitable organization to file a tax appeal in the New Jersey Tax Court.
The Borough recognized revenue in the amount of $9,667 ($4,786 received for 2018 and $4,882 received in advance in 2018 for 2019) from this annual service charge or payment in lieu of taxes which is recorded as a miscellaneous revenue not anticipated in the Current Fund. The taxes which would have been paid on this property for 2018 without the abatement would have been $45,525 of which $10,251 would have been for the local municipal tax, minimum library tax and municipal open space tax.
As of December 31, 2018, The Borough provides a tax abatement to a public nonprofit housing organization for its senior citizen and low income housing developments in the Borough pursuant to the authority contained in the Redevelopment and Housing Law (N.J.S.A. 40A:12A-l) (the "Law") and agreements dated September 28, 1972, July 14, 1980, May 12, 1981 and December 8, 1997. In consideration of the full abatement of taxes, the public nonprofit housing organization is required to pay to the Borough an annual service charge. The annual service charge made by the public nonprofit housing organization will be equal to 5% of the annual shelter rent derived from such housing project as detailed in the tax abatement agreement.
The Borough recognized revenue in the amount of $136,550 ($74,072 for 2017 and $62,478 for 2018) from this annual service charge or payment in lieu of taxes which is recorded as a miscellaneous revenue not anticipated in the Current Fund. The taxes which would have been paid on this property for 2018 without the abatement would have been $432,577 of which $97,403 would have been for the local municipal tax, minimum library tax and municipal open space tax.
As of December 31, 2018, the Borough provides a tax abatement to a property in the Borough pursuant to NJSA 40A:12A-7 and Ordinance 37-2014 "An Ordinance authorizing the Borough of Madison, in the County of Morris, New Jersey to enter into a financial agreement with KRE Madison NJ Urban Renewal, LLC for property at 33 Green Village Road designated as Block 3001, Lot 8." The development includes 100 rental units and 35 condominium units. The Financial Agreement executed on May 28, 2014 details the Payment in Lieu of Taxes (PILOT). The agreement sets the PILOT payment at the greater of the Minimum Base Service Charge .of approximately $524,600, and the Annual Service Charge which is calculated based on gross shelter rent for the Rental Component and 25% of all condominium service fees and 25% of an implied mortgage payment based on the actual sale price of each condominium unit. The Minimum Base Service Charge shall be increased by 2% per year thereafter. In no event, shall the property pay more than ad valorem taxes.
25
Note 16: Tax Abatements (Cont'd)
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
The Borough anticipates PILOT payments to be approximately $592,000 in 2019. Once all of the units in the rental component are fully rented for an entire year and once all the condominium units are sold, the PILOT payment will exceed the Minimum Base Service Charge. As of June 1, 2019, twenty of the thirtyfive condominium units have sold.
The Borough of Madison governing body agreed to share 32.5 percent of all net PILOT revenue with the Board of Education. The PILOT payments provided under the Financial Agreement shall remain in full force and effect for a period of thirty years, commencing on March 1, 2018 and concluding on February 28, 2048.
Because the project was not fully completed when the Borough adopted the 2018 annual budget, the Borough recognized the PILOT revenue in 2018 as Miscellaneous Revenue Not Anticipated. The Borough anticipated $370,000 in PILOT revenue in the 2019 budget which is 62.5% of the total estimated PILOT. As per statute, the County will receive 5% of the PILOT. As previously mentioned, the Board of Education will receive 32.5% of the PILOT revenue.
The PILOT payments are for the buildings and improvements on the property. The property owners will continue to pay ad valorem land taxes on the assessed value of the land. In 2018, the property paid 'land taxes' of $185,531.04.
The Borough recognized revenue in the amount of $453,886 from this annual service charge or payment in lieu of taxes which is recorded as a miscellaneous revenue not anticipated in the Current Fund. The taxes which would have been paid on this property for 2018 without the abatement would have been $599,476 of which $134,983 would have been for the local municipal tax, minimum library tax and municipal open space tax.
Note 17: Fixed Assets
The following is a summarization of general fixed assets for the year ended December 31, 2018:
Balance Balance Dec. 31, 2017 Additions Deletions Dec. 31, 2018
Land $37,472,600.00 $4,222, 700.00 $33,249,900.00 Buildings 25,053,725.73 25,053,725.73 Improvements Other than Buildings 3,999,484.72 3,999,484.72 Machinery and Equipment 11,227,142.00 $1,311,483.00 20,661.00 12,517,964.00
$77,752,952.45 $1,311,483.00 $4,243,361.00 $74,821,074.45
26
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
Note 18: Postemployment Benefits Other Than Pensions (OPEB)
A. State Health Benefit Local Government Retired Employees Plan
General Information about the OPEB Plan
Plan Description
The State Health Benefit Local Government Retired Employees Plan (the Plan) is a cost sharing multiple employer defined benefit other postemployment benefit (OPEB) plan with a special funding situation. It covers employees of local government employers that have adopted a resolution to participate in the Plan. The plan meets the definition of an equivalent arrangement as defined in paragraph 4 of GASB Statement No. 75, Accounting and Financial Reporting for the Postemployment Benefits Other Than Pensions; therefore, assets are accumulated to pay associated benefits. For additional information about the Plan, please refer to the State of New Jersey (the State), Division of Pensions and Benefits' (the Division) Comprehensive Annual Financial Report (CAFR), which can be found at https://www.state.nj.us./treasury/pensions/financial-reports.shtml.
Benefits Provided
The Plan provides medical and prescription drug coverage to retirees and their dependents of the employers. Under the provisions of Chapter 88, P.L. 1974 and Chapter 48, P.L. 1999, local government employers electing to provide postretirement medical coverage to their employees must file a resolution with the Division. Under Chapter 88, local employers elect to provide benefit coverage based on the eligibility rules and regulations promulgated by the State Health Benefits Commission. Chapter 48 allows local employers to establish their own age and service eligibility for employer paid health benefits coverage for retired employees.
Under Chapter 48, the employer may assume the cost of postretirement medical coverage for employees and their dependents who: 1) retired on a disability pension; or 2) retired with 25 or more years of service credit in a State or locally administered retirement system and a period of service of up to 25 years with the employer at the time of retirement as established by the employer; or 3) retired and reached the age of 65 with 25 or more years of service credit in a State or locally administered retirement system and a period of service of up to 25 years with the employer at the time of retirement as established by the employer; or 4) retired and reached age 62 with at least 15 years of service with the employer. Further, the law provides that the employer paid obligations for retiree coverage may be determined by means of a collective negotiations agreement.
In accordance with Chapter 330, P.L. 1997, which is codified in N.J.S.A. 52:14-17.32i, the State provides medical and prescription coverage to local police officers and firefighters, who retire with 25 years of service or on a disability from an employer who does not provide postretirement medical coverage. Local employers were required to file a resolution with the Division in order for their employees to qualify for State-paid retiree health benefits coverage under Chapter 330. The State also provides funding for retiree health benefits to survivors of local police officers and firefighters who die in the line of duty under Chapter 271, P.L. 1989.
27
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31. 2018 (Continued)
Note 18: Postemployment Benefits Other Than Pensions (OPEB) (Cont'd)
A. State Health Benefit Local Government Retired Employees Plan (Cont'd)
Contributions
Pursuant to Chapter 78, P.L. 2011, future retirees eligible for postretirement medical coverage who have less than 20 years of creditable service on June 28, 2011 will be required to pay a percentage of the cost of their health care coverage in retirement provided they retire with 25 or more years of pension service credit. The percentage of the premium for which the retiree will be responsible will be determined based on the retiree's annual retirement benefit and level of coverage.
Special Funding Situation
Under Chapter 330, P.L. 1997, the State shall pay the premium or periodic charges for the qualified local police and firefighter retirees and dependents equal to 80 percent of the premium or periodic charge for the category of coverage elected by the qualified retiree under the State managed care plan or a health maintenance organization participating in the program providing the lowest premium or periodic charge. The State also provides funding for retiree health benefits to survivors of local police officers and firefighters who die in the line of duty under Chapter 271, P.L. 1989.
Therefore, these employers are considered to be in a special funding situation as defined by GASB Statement No. 75 and the State is treated as a nonemployer contributing entity. For New Jersey local governments who report under the regulatory basis of accounting, the net OPEB liability and related deferred inflows are not recorded in the financial statements and there is only note disclosure of this information. Since the local participating employers do not contribute under this legislation directly to the plan, there is no net OPEB liability, deferred outflows of resources, or deferred inflows of resources to report in the financial statements of the local participating employers related to this legislation.
However, the notes to the financial statements of the local participating employers must disclose the portion of the nonemployer contributing entities' total proportionate share of the collective net OPEB liability that is associated with the local participating employer.
Allocation Methodology
GASB Statement No. 75 requires participating employers in the Plan to recognize their proportionate share of the collective net OPEB liability, collective deferred outflows of resources, collective inflows of resources, and collective OPEB expense. The special funding situation's and nonspecial funding situation's net OPEB liability, deferred outflows of resources, deferred inflows of resources, and OPEB expense are based on separately calculated total OPEB liabilities. The nonspecial funding situation's net OPEB liability, deferred outflows of resources, deferred inflows of resources, and OPEB expense are further allocated to employers based on the ratio of the plan members of an individual employer to the total members of the Plan's nonspecial funding situation during the measurement period July 1, 2016 through June 30, 2017. Employer and nonemployer allocation percentages were rounded for presentation purposes.
28
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31. 2018 (Continued)
Note 18: Postemployment Benefits Other Than Pensions (OPEB) (Cont'd)
A. State Health Benefit Local Government Retired Employees Plan (Cont'd)
OPEB Expense
The total OPEB liability as of June 30, 2018 was not available from the State of New Jersey Division of Pensions and Benefits as of the date of this report. The total OPEB liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016, which was rolled forward to June 30, 2017.
The State's proportionate share of the net OPEB liability attributable to the Borough at June 30, 2017 was $19,055,911. At June 30, 2017, the State's proportion related to the Borough was 0.219149%. This is the percentage of the total State Share of the net OPEB liability of the Plan.
During the year ended June 30, 2017, the State of New Jersey's OPEB expense related to the Borough was $1,363,757.
Actuarial Assumptions and Other Inputs
The actuarial assumptions vary for each plan member depending on the pension plan the member is enrolled in. This actuarial valuation used the following actuarial assumptions, applied to all periods in the measurement.
Inflation Rate
Salary Increases*: Through 2026 Thereafter
2.50%
1.65% - 8.98% 2.65% to 9.98%
* - Salary increases are based on the defined benefit plan that the member is enrolled in and his or her age.
Preretirement mortality rates were based on the RP-2006 Headcount-Weighted Healthy Employee Male/Female Mortality Table with fully generational mortality improvement projections from the central year using MP-2017 scale. Postretirement mortality rates were based on the RP-2006 Headcount-Weighted Health Annuitant Male/Female mortality table with fully generational improvement projections from the central year using the MP-2017 scale. Disability mortality was based on the RP-2006 Headcount-Weighted Disabled Male/Female mortality table with fully generational improvement projections from the central year using the MP-2017 scale.
Certain actuarial assumptions used in the June 30, 2016 valuation were based on the results of the pension plans' experience studies for which the members are eligible for coverage under this Plan - the Police and Firemen Retirement System (PFRS) and the Public Employees' Retirement System (PERS). The PFRS and PERS experience studies were prepared for the periods July 1, 2010 to June 30, 2013 and July 1, 2011 -June 30, 2014, respectively.
29
BOROUGH OF MADISON NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2018 (Continued)
Note 18: Postemployment Benefits Other Than Pensions (OPEB) (Cont'd)
A. State Health Benefit Local Government Retired Employees Plan (Cont'd)
Health Care Trend Assumptions
For pre-Medicare preferred provider organization (PPO) medical benefits, this amount initially is 5.9% and decreases to a 5.0% long term trend rate after nine years. For self-insured post 65 PPO medical benefits and HMO medical benefits, the trend rate is 4.5%. For prescription drug benefits, the initial trend rate is 10.5% decreasing to a 5.0% long term rate after eight years. For the Medicare Part B reimbursement, the trend rate is 5.0%. The Medicare Advantage trend rate is 4.5% and will continue in all future years.
Discount Rate
The discount rate for June 30, 2017 was 3.58%. The discount rate for June 30, 2016 was 2.85%. This represents the municipal bond rate as chosen by the State. The source is the Bond Buyer Go 20-Bond Municipal Bond Index, which includes tax-exempt general obligation municipal bonds with an average rating of AA/ Aa or higher. As the long-term rate of return is less than the municipal bond rate, it is not considered in the calculation of the discount rate, rather the discount rate is set at the municipal bond rate.
B. Life Insurance Coverage
The Borough offers life insurance coverage for eligible retired firefighters through Standard Life Insurance. To be eligible for this benefit, the employee must have been employed by the Borough at the time of retirement with at least 25 or more years of good service with the Borough. The annual costs of providing such benefits amount to approximately $10,000.00 in premiums. The Borough is only responsible for the payment of the annual premiums.
30
BOROUGH OF MADISON
SUPPLEMENTARY DATA
Name
Robert H. Conley
Patrick W. Rowe
Astri J. Baillie
Maureen Byrne
John F. Hoover
Carmela Vitale
Benjamin Wolkowitz
Raymond M. Codey
Elizabeth Osborne
James Burnet
Ashley Marrone
Donna Carey
Lisa Baratto
Russell Brown
Louie DeRosa, III
Matthew J. Giacobbe, Esq.
Darren Dachisen
Michael Fitzpatrick
Joanne Grillo
Gary F. Troxell
Frank Ciampi
Dawn Allgeier
Briana Diamond
Linda Sawyer
BOROUGH OF MADISON
OFFICIALS IN OFFICE AND SURETY BONDS
YEAR ENDED DECEMBER 31, 2018
Mayor
Council President
Council Member
Council Member
Council Member
Council Member
Council Member
Administrator
Clerk
Title
Chief Financial Officer/ Assistant
Administrator
Tax Collector
Utility Rent Collector
Tax Assessor
Building Subcode Construction Official
Fire Chief
Borough Attorney
Police Chief
Health Officer
Secretary, Board of Health
Registrar, Vital Statistics
Magistrate
Court Administrator
Deputy Court Administrator
Deputy Court Administrator
Purchasing/Personnel Officer
$
Amount of
Bond
**
**
**
**
200,000 **
**
**
**
**
**
**
**
**
**
**
Schedule 1
Name of Corporate Surety
**
**
**
**
Travelers Insurance Co.
**
**
**
**
**
**
**
**
**
**
**
**There is a Public Employee Blanket Bond for $1,000,000 covering all municipal employees not separately bonded:
Morris County Municipal Joint Insurance Fund
Municipal Excess Liability Joint Insurance Fund
$ 50,000
950,000 $ 1,000,000
* There is a separate Statutory Position Bond for $1,000,000 covering the Tax Collector:
Morris County Municipal Joint Insurance Fund
Municipal Excess Liability Joint Insurance Fund
All bonds were examined and were properly executed.
$ 50,000
950,000 $ 1,000,000
BOROUGH OF MADISON COUNTY OF MORRIS
2018 CURRENT FUND
A-4
BOROUGH OF MADISON
CURRENT FUND
SCHEDULE OF CASH - TREASURER
Ref.
Balance December 31, 2017 A $ 22,287,318.81
Increased by Receipts:
Taxes Receivable $ 59,631,560.55
Revenue Accounts Receivable 12,064,278.59
Miscellaneous Revenue Not Anticipated 1,072,752.65
Prepaid Taxes 522,181.85
Tax Overpayments 452,257.93
Appropriation Refunds 101,575.60
Appropriation Reserve Refunds 16,231.27
Due to Federal and State Grant Fund:
Grants Receivable 93,987.78
Due from/to State of New Jersey:
Veterans' and Senior Citizens' Deductions 70,024.02
Construction Code Fees 63,008.00
Due from/to General Capital Fund:
Interfund Advanced 1,624.07
Reserve for MCJM Expansion and Operations 66,663.00
Due from Water Utility Operating Fund:
Prior Year Interfund Returned 1,134.35
Due from/to Other Trust Fund:
Prior Year Interfund Returned 22,921.47
Interfund Advanced 16.75
Due from Animal Control Fund:
Prior Year Interfund Returned 22,045.04
74,202,262.92
96,489,581.73
Decreased by Disbursements:
2018 Appropriation Expenditures 26,258,930.66
2017 Appropriation Reserve Expenditures 880,781.05
Local School District Taxes 42,274,722.00
Prepaid Local School District Taxes 3.13
County Taxes 10,483,701.64
Tax Overpayments Refunded 452,257.97
Due State of New Jersey - Construction Code Fees 66,219.00
Due from Federal and State Grant Fund:
Appropriated Reserves 144,214.63
Due from General Capital Fund:
Prior Year Interfund Returned 124,455.99
Due Open Space Trust Fund:
Open Space Tax Levy 637,632.54
Prior Year Interfund Returned 4,358.21
Due Payroll Agency:
Interfund Advanced 20,000.00
Reserve for Tax Appeals Pending 12,893.31 81,360, 170.13
Balance December 31, 2018 A $ 15,129,411.60
BOROUGH OF MADISON CURRENT FUND
SCHEDULE OF CASH - COLLECTOR YEAR ENDED DECEMBER 31, 2018
NOT APPLICABLE
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Balance December 31, 201 7
Increased by:
BOROUGH OF MADISON
CURRENT FUND SCHEDULE OFT AX TITLE LIENS
Ref.
A
Transferred From Taxes Receivable $ Interest and Costs on Tax Sale
Balance December 31, 2018 A
A-7
$ 40,180.08
3,993.95
31.00 4,024.95
$ 44,205.03
A-8
BOROUGH OF MADISON
CURRENT FUND
SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE
Balance Accrued Collected by Balance
Dec. 31, 2017 in 2018 Treasurer Dec. 31, 2018
Borough Clerk:
ABC Licenses $ 31,823.80 $ 31,823.80
Other 36,813.00 36,813.00
Fees and Permits 362,235.35 362,235.35
Municipal Court $ 7,885.79 129,680.42 126,535.25 $ 11,030.96
Interest and Costs on Taxes 82,220.27 82,220.27
Parking Meters 80,240.30 80,240.30
Interest on Investments and Deposits 304,638.50 304,638.50
Police Burglar Alarms 15,690.00 15,690.00
Cablevision Franchise Fee 234,453.57 234,453.57
Sewer Fees on Tax Exempt Properties 268,194.95 268,194.95
Consolidated Municipal Property Tax Relief Aid 41,565.00 41,565.00
Energy Receipts Tax 766,964.00 766,964.00
Uniform Construction Code Fees 763,925.79 763,925.79
lntermunicipal Health Contracts for Local Community
Health Services 328,280.00 328,280.00
Inter-Municipal Contract for Tax Assessor Services 93,999.00 93,999.00
Inter-Municipal Contract for Joint Court Agreement 630,714.93 630,714.93
Utility Operating Surplus of Prior Years - Electric 7,045,153.00 7,045,153.00
Life Hazard User Fees 29,589.00 29,589.00
Payment in Lieu of Taxes on Exempt Property - FDU 42,090.38 42,090.38
Madison Cell Tower Lease 329,063.32 329,063.32
Utility Operating Surplus of Prior Years - Water Utility 200,000.00 200,000.00
Rosenet User Fees 63,032.64 63,032.64
Sewer Connection Fees 23,678.00 23,678.00
Recreation Fees 135.00 135.00
Technology Services 163,243.57 163,243.57
$ 7,885.79 $ 12,067,423.79 $ 12,064,278.62 $ 11,030.96
Ref A A
Cash Receipt $ 12,064,278.59
Due from Water Utility Operating Fund:
Sewer Fees on Tax Exempt Properties 0.03
$ 12,064,278.62
A-9
I of3
BOROUGH OF MADISON CURRENT FUND
SCHEDULE OF 2017 APPROPRIATION RESERVES YEAR ENDED DECEMBER 31, 2018
Balance
Balance After Modi- Paid or Balance
Dec. 31, 2017 fication Charged Lapsed
General Administration:
Salaries and Wages $ 783.99 $ 783.99 $ 783.99
Other Expenses 7,708.45 7,708.45 $ 904.60 6,803.85
Municipal Support: Salaries and Wages 1,521.81 1,521.81 1,521.81
Other Expenses 10,050.74 10,050.74 1,519.39 8,531.35
Human Resources: Salaries and Wages 1,840.51 1,840.51 1,840.51
Other Expenses 16,576.69 16,576.69 10,160.29 6,416.40
Mayor and Council:
Salaries and Wages 1,334.53 1,334.53 1,334.53
Other Expenses 6,658.79 6,658.79 1,220.45 5,438.34
Borough Clerk:
Salaries and Wages 5,409.92 5,409.92 5,409.92
Other Expenses 16,544.29 16,544.29 1,933.27 14,611.02
Financial Administration (Treasury):
Salaries and Wages 6,612.52 6,612.52 6,612.52
Other Expenses 10,198.79 10,198.79 4,603.50 5,595.29
Elections:
Other Expenses 3,710.97 3,710.97 3,710.97
Audit Services:
Other Expenses 42,150.00 42,150.00 37,100.00 5,050.00
Revenue Administration (Tax Collection): Salaries and Wages 9,579.36 9,579.36 9,579.36
Other Expenses 5,964.02 5,964.02 894.67 5,069.35
Tax Assessment Administration:
Salaries and Wages 83.96 83.96 83.96
Other Expenses 24,766.00 24,766.00 12,749.32 12,016.68
Legal Services and Costs:
Other Expenses 135,990.51 135,990.51 9,243.75 126,746.76
Engineering Services:
Salaries and Wages 13,546.76 13,546.76 13,546.76
Other Expenses 19,760.82 19,760.82 3,725.95 16,034.87
Environmental Commission:
Other Expenses 575.00 575.00 575.00
Community Business Development:
Salaries & Wages 101,394.45 101,394.45 101,394.45
Other Expenses 8,130.01 8,130.01 898.45 7,231.56
Historic Preservation:
Other Expenses 3,950.00 3,950.00 85.00 3,865.00
Planning Board:
Salaries and Wages 4,325.87 4,325.87 4,325.87
Other Expenses 92,897.59 92,897.59 3,342.04 89,555.55
Zoning Board of Adjustment: Salaries and Wages 365.44 365.44 365.44
Other Expenses 27,428.89 27,428.89 7,277.66 20,151.23
Police and Fire Building: Other Expenses 22,216.77 22,216.77 15,019.34 7,197.43
A-9
2 of3
BOROUGH OF MADISON CURRENT FUND
SCHEDULE OF 2017 APPROPRIATION RESERVES YEAR ENDED DECEMBER 31, 2018
(Continued)
Balance
Balance After Modi- Paid or Balance
Dec. 31, 2017 fication Charged Lapsed
Police: Salaries & Wages $ 58,605.59 $ 58,605.59 $ 58,605.59
Other Expenses 38,005.92 38,005.92 $ 24,988.32 13,017.60
Project Community Pride:
Other Expenses 937.00 937.00 937.00
Emergency Management:
Other Expenses 7,867.72 7,867.72 6,286.50 1,581.22
Fire Department: Salaries & Wages 22,552.58 22,552.58 22,552.58
Other Expenses 17,903.78 17,903.78 11,563.92 6,339.86
Uniform Fire Safety Act:
Salaries & Wages 101.53 101.53 101.53
Public Works:
Salaries and Wages 272,863.89 272,863.89 272,863.89
Other Expenses 182,332.58 182,332.58 81,591.97 100,740.61
Sewer Department: Salaries and Wages 38,390.18 38,390.18 38,390.18
Other Expenses 89,044.31 89,044.31 25,107.86 63,936.45
Shade Tree Authority:
Other Expenses 32,903.39 32,903.39 12,740.00 20,163.39
Garbage Removal:
Other Expense 658,763.69 658,763.69 384,093.38 274,670.31
Public Building & Grounds:
Salaries & Wages 6,951.59 6,951.59 6,951.59
Other Expenses 41,525.55 41,525.55 18,737.49 22,788.06
Vehicle Maintenance:
Salaries and Wages 19,010.43 19,010.43 19,010.43
Other Expenses 106,067.59 106,067.59 43,224.81 62,842.78
Board of Health:
Salaries & Wages 1,039.00 1,039.00 1,039.00
Other Expenses 151,504.28 151,504.28 34,233.37 117,270.91
Animal Control Services: Salaries and Wages 2,000.00 2,000.00 2,000.00
Other Expenses 3,405.00 3,405.00 426.93 2,978.07
Civic Center:
Other Expenses 7,980.71 7,980.71 5,213.06 2,767.65
Recreation & Playgrounds:
Salaries & Wages 3,307.74 3,307.74 3,307.74
Other Expenses 26,029.97 26,029.97 8,250.00 17,779.97
Senior Citizens Programs:
Salaries & Wages 3,172.63 3,172.63 3,172.63
Other Expenses 3,724.33 3,724.33 1,841.95 1,882.38
Teen Center: Other Expenses 2.00 2.00 2.00
Parks Commission:
Other Expenses 3,871.94 3,871.94 3,871.94
Celebration of Public Events, Anniversary or Holiday:
Other Expenses 12,054.73 12,054.73 662.00 11,392.73
A-9
3 of3
BOROUGH OF MADISON
CURRENT FUND
SCHEDULE OF 2017 APPROPRlATION RESERVES
YEAR ENDED DECEMBER 31, 2018
(Continued)
Balance
Balance After Modi- Paid or Balance
Dec.31,2017 fication Charged Lapsed
Municipal Court:
Salaries and Wages $ 29,677.00 $ 29,677.00 $ 29,677.00
Other Expenses 20,100.00 20,100.00 $ 14,519.41 5,580.59
Insurance:
General Liability 81,473.59 81,473.59 1,154.82 80,318.77
Workers Compensation Insurance 3,000.00 3,000.00 3,000.00
Employee Group Health 206,053.37 206,053.37 9,799.22 196,254.15
Health Benefit Waiver 14,509.49 14,509.49 14,509.49
State Uniform Construction Code:
Salaries and Wages 26,190.31 26,190.31 26,190.31
Other Expenses 68,818.82 68,818.82 7,406.45 61,412.37
Salary & Wage Adjustment Program 20,000.00 20,000.00 20,000.00
Utility Expenses:
Electricity 91,327.65 91,327.65 40,161.87 51,165.78
Telephone 33,569.75 33,569.75 6,035.57 27,534.18
Natural Gas 29, 181.25 29, 181.25 10,066.10 19,115.15
Sewerage Processing and Disposal 3,700.00 3,700.00 3,700.00
Gasoline 114,624.59 114,624.59 5,599.08 109,025.51
Contingent 49,998.00 49,998.00 49,998.00
Public Employees' Retirement System 6,000.57 6,000.57 6,000.57
Social Security 58,541.02 58,541.02 58,541.02
Police and Fireman's Retirement System of New Jersey 17,052.94 17,052.94 17,052.94
Defined Contribution Retirement Program 2,669.30 2,669.30 168.02 2,501.28
Sanitation:
Madison-Chatham Joint Meeting 50,423.28 50,423.28 50,423.28
Maintenance of Free Public Library (c. 82, P.L. 1985):
Other Expenses 24,211.77 24,211.77 24,211.77
Inter-Municipal Health Contracts for Local Conununity
Board of Health:
Salaries and Wages 27, 191.06 27,191.06 27,191.06
Inter-Municipal Services for Joint Court:
Salaries and Wages 6,973.58 6,973.58 6,973.58
Other Expenses 35,962.83 35,962.83 35,962.83
$ 3,435,247.27 $ 3,435,247.27 $ 864,549.78 $ 2,570,697.49
Ref.
Unencumbered A $ 2,249,713.30
Encumbered A 1, 185,533.97
$ 3,435,247.27
Cash Disbursed $ 880,781.05
Less: Appropriation Refunds ( 16,231.27)
$ 864,549.78
BOROUGH OF MADISON
CURRENT FUND SCHEDULE OF LOCAL SCHOOL DISTRICT TAXES PAY ABLE
Balance December 31, 2017
Increased by: Levy - Calendar Year 2018
Decreased by: Payments to Local School District
Balance/(Prepaid) December 31, 2018
A-10
$ -0-
42,274, 722.00
42,274,725.13
$ (3.13)
Mun
icip
al A
llia
nce
Prog
ram
: 20
16
2017
20
18
MA
AS
A S
uppl
emen
tal
-C
ount
y:
2015
20
17
2018
C
lean
Com
mun
itie
s G
rant
: 20
18
Rec
ycli
ng T
onna
ge G
rant
: 20
17
2018
D
istr
acte
d D
rivi
ng C
rack
dow
n G
rant
D
rive
Sob
er o
r G
et P
ulle
d O
ver:
20
16 -
Yea
r E
nd H
olid
ay C
rack
dow
n M
adis
on M
ain
Str
eet F
ound
atio
n G
rant
: 20
17
2018
D
rug
Fre
e C
omm
unit
y M
ento
ring
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nt
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RO
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F M
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ED
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F ST
AT
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ND
FE
DE
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L G
RA
NT
S R
EC
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LE
Bud
get
Tra
nsfe
rred
fro
m
Bal
ance
R
even
ue
Cas
h U
napp
ropr
iate
d D
ec.
31,
2017
R
eali
zed
Rec
eive
d R
eser
ves
$ 23
7.17
1,
292.
25
$ 12
,419
.00
2,00
0.00
2,
000.
00
$ 2,
000.
00
2,00
0.00
64
.85
27,7
96.4
1 27
,796
.41
0.37
$
0.37
20
,977
.90
20,9
77.9
0 1,
320.
00
100.
00
216,
122.
70
64,1
26.5
2 14
0,00
0.00
17
,315
.00
$ 24
0,38
7.12
$
203,
193.
68
$ 93
,987
.78
$ 20
,978
.27
Ref
. A
Fed
eral
$
-0-
Sta
te
27,7
96.4
1 L
ocal
66
,191
.37
$ 93
,987
.78
A-1
1
Bal
ance
C
ance
llat
ion
Dec
.31
,20
18
$ 23
7.17
$
1,29
2.25
12
,419
.00
2,00
0.00
1,93
5.15
1,32
0.00
100.
00
151,
996.
18
140,
000.
00
17,3
15.0
0
$ 2,
337.
17
$ 32
6,27
7.58
A
A-11
BOROUGH OF MADISON FEDERAL AND ST A TE GRANT FUND
SCHEDULE OF APPROPRIATED RESERVES
Transferred
Balance from Cash Dec. 31, 2017 2018 Budget Disbursed
Clean Communities Program:
2015 $ 1,484.67 $ 1,484.67
2016 34,202.81 34,202.81
2017 29,057.43 12,717.28
2018 $ 27,796.41
Recycling Tonnage Grant: 2014 37,247.19
2016 40,905.27
2017 17,920.00 0.37
2018 20,977.90 12,750.00
Drunk Driving Enforcement Fund - 2016 1,895.08
Alcoholism Education and Rehabilitation Fund:
2007 934.20 934.20
2008 2,098.55 2,098.55
2009 872.82 872.82
2012 1,241.15 594.43
2013 422.20
2014 1,181.60
2015 58.93
2016 1,510.79
2017 128.68
Municipal Alliance on Alcoholism and Drug Abuse: State Share - 201 7 739.63
State Share - 2018 12,419.00 11,358.93
Borough Share - 2016 1,415.83
Borough Share - 2017 3,104.75 1,669.99
Borough Share - 2018 3,104.25 2,839.73
MAASA Supplemental - County: Supplemental - 2014 456.76
Supplemental - 2015 2,000.00
Supplemental - 2017 2,000.00 600.00
Supplemental - 2018 2,000.00
Body Annor Grant: 2014 0.03
2015 2,857.44 2,531.10
2016 2,745.56
2017 2,749.66
Distracted Driving Crackdown Grant 1,320.00
Pedestrian Safety Enforcement & Education Fund 7,600.00
Click It or Ticket - 2015 3,925.00
Over the Limit Grant - 2014 3,400.00
Unexpended
Balance Cancelled
$ 739.63
456.76 2,000.00
0.03
A-12 1 of 2
Balance Dec. 31, 2018
$ 16,340.15
27,796.41
37,247.19 40,905.27 17,920.37 8,227.90 1,895.08
646.72 422.20
1,181.60 58.93
1,510.79 128.68
1,060.07 1,415.83 1,434.76
264.52
1,400.00
2,000.00
326.34 2,745.56 2,749.66 1,320.00
7,600.00 3,925.00 3,400.00
Drive Sober or Get Pulled Over:
2016 - Year End Holiday Crackdown
Sustainable Jersey Grant - 2015
Madison Main Street Foundation Grant:
2016
2017
2018 Drug Free Community Mentoring Grant
Grotta Grant for Seniors
Ref.
BOROUGH OF MADISON FEDERAL AND ST A TE GRANT FUND
SCHEDULE OF APPROPRIATED RESERVES
Transferred
Balance from Cash
Dec. 31, 2017 2018 Budget Disbursed
$ 1,065.00 $ 550.00
2,009.37
79,313.10
140,000.00 5,965.00
$ 140,000.00 53,045.12
15,070.00
349.35
$ 443,282.85 $ 206,297.93 $ 144,214.63
A
Federal Grants $ 550.00 State Grants $ 63,193.68 79,544.79
Local Grants 140,000.00 59,610.12
Local Matching Funds 3,104.25 4,509.72
$ 206,297.93 $ 144,214.63
Unexpended
Balance
Cancelled
$ 515.00
$ 3,711.42
A-12
2 of2
Balance
Dec. 31, 2018
$ 2,009.37
79,313.10
134,035.00
86,954.88
15,070.00
349.35
$ 501,654.73
A
Recycling Tonnage Grant:
2017
2018
BOROUGH OF MADISON
FEDERAL AND STATE GRANT FUND
SCHEDULE OF UNAPPROPRIATED RESERVES
Balance
Dec. 31, 2017
$ 0.37
20,977.90
$ 20,978.27
Ref. A
$
$
A-13
Transferred
to Budget
Revenue
0.37
20,977.90
20,978.27
BOROUGH OF MADISON COUNTY OF MORRIS
2018 TRUST FUNDS
Balance December 31, 2017
Increased by Receipts:
Borough Dog License Fees Prepaid Borough Dog License Fees
State Dog License Fees
Other Dog/Cat License Fees
Open Space Tax Levy
Open Space Receipts:
NJEDAGrant
Field Rental
Interest Earned
Due from Current Fund:
Prior Year Interfund Returned
Decreased by Disbursements:
State Board of Health
BOROUGH OF MADISON
TRUST FUNDS
SCHEDULE OF CASH - TREASURER
Ref. Animal Control Fund
B $ 68,551.48
$ 13,984.60
4,995.60
1,567.80
3,089.00
820.82
24,457.82
93,009.30
1,639.20
Expenditures UnderR.S. 4:19-15.11 2,640.45
Due to Current Fund:
Prior Year Interfund Returned 22,045.04
Open Space Expenditures
Open Space Debt Service
Due to General Capital Fund:
Improvement Authorizations
26,324.69
Balance December 31, 2018 B $ 66,684.61
B-4
1 of2
Open Space Trust Fund
$ 999,057.98
$ 637,632.54
409,312.51
88,747.00
13,402.17
4,358.21 1, 153,452.43
2,152,510.41
227,389.73
230,000.00
77,600.00
534,989.73
$ 1,617 ,520.68
B-4 2 of2
BOROUGH OF MADISON TRUST FUNDS
SCHEDULE OF CASH - TREASURER (Continued)
Affordable Housing Development Ref. Trust Fund Other Trust Funds
Balance December 3 I, 2017 B $ 2,077,076.22 $ I ,539,935.43
Increased by Receipts: Due Current Fund:
Interest $ 684.47
Due to State of New Jersey: Marriage License Fees 1,625.00
Reserve for: Affordable Housing Development:
COAHFees $ 1,345,961.25
Interest Earned 29,906.96
Developers' Escrows 140,280.44
Chapter 14 P.O.A.A. I ,I 92.00
Jacob Henry Perkins 9,770.29
Police Outside Duty 1,016,618.80
State Law Enforcement 5,331.82
MAASA Trust 120.00
Fire Department 4,794.80
Community Gardens Project 6,929.47
Station Area Fund 90,746.88
State Unemployment Insurance 20,757.47
Recreation 48,865.34 1,375,868.21 1,347,716.78 3,452,944.43 2,887,652.21
Decreased by Disbursements: Due to Current Fund:
Prior Year Interfund Returned 22,921.47
Interfund Advanced 16.75
Due to State of New Jersey: Marriage License Fees 1,750.00
Reserve for: Affordable Housing Development 182,720.42
Chapter 14 P.0.A.A. 1,395.00
Developers' Escrow 426,351.20
Jacob Henry Perkins 10,000.00
Police Outside Duty 991,886.67
State Law Enforcement 17,046.64
MAASA Trust 1,075.00
Fire Department 9,807.44
Community Gardens Project 3,813.10
Station Area Fund I 13,342.00
Unallocated Receipt 1.00 State Unemployment Insurance 59,003.73
Recreation 20,678.14 182,720.42 1,679,088.14
Balance December 31, 2018 B $ 3,270,224.01 $ 1,208,564.07
BOROUGH OF MADISON ANIMAL CONTROL FUND
SCHEDULE OF RESERVE FOR ANIMAL CONTROL FUND EXPENDITURES
Balance December 31, 2017
Increased by:
Dog License Fees
Other Dog/Cat License Fees
Interest Earned Prior Year Prepaid Licenses
Decreased by: Statutory Excess - Due to Current Fund
Animal Control Fund Expenditures
Balance December 31, 2018
License Fees Collected
2016
2017
Maximum Allowable Reserve
Ref.
B
$ 13,984.60
3,089.00
820.82 5,713.20
19,103.41
2,640.45
B
Amount
$ 20,162.40
21,950.80
$ 42,113.20
B-5
$ 40,249.44
23,607.62
63,857.06
21,743.86
$ 42,113.20
BOROUGH OF MADISON COUNTY OF MORRIS
2018 GENERAL CAP IT AL FUND
BOROUGH OF MADISON
GENERAL CAPITAL FUND
SCHEDULE OF CASH
Ref.
Balance December 31, 201 7 c
Increased by Receipts:
Due from Current Fund:
Current Fund Appropriations: Capital Improvement Fund
Prior Year Interfund Returned
Due From Other Trust Funds:
Police Outside Duty Trust Fund:
Improvement Authorization
Due from Open Space Trust Fund:
Improvement Authorization
Grant Funds Received on Fully Funded
Improvement Authorizations:
Morris County Historic Preservation Trust Fund
New Jersey Department of Transportation Grants
Edward Bryne Memorial Justice Assistance Program
Community Development Block Grant
Private Contribution - Improvement Authorization
Interest on Investments Due to Current Fund
Decreased by Disbursements:
Due to Current Fund:
Interfund Advanced
Improvement Authorization Expenditures
Balance December 31, 2018 c
C-2
$ 3,819,141.31
$ 3,800,000.00
124,455.99
30,000.00
77,600.00
21,360.00
226,875.00
15,000.00
62,150.00
8,000.00
1,796.40
4,367,237.39
8,186,378.70
1,624.07
3,565,531.65
3,567,155.72
$ 4,619,222.98
Fun
d B
alan
ce
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ital
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prov
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t F
und
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Num
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Red
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ork
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Dec
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$ 9,
490.
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BO
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Bal
ance
Dec
. 31
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7
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2018
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Bal
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Dec
. 31
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Fun
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C-5 1 of 3
Impr
ovem
ent
Des
crip
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Aut
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Def
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at A
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at t
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Im
prov
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Mil
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Can
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and
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rage
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ite
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Def
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Ord
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Bal
ance
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Var
ious
T
o F
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e T
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nber
A
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nt
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$
C-5
2 o
f3
Bal
ance
Dec
. 31
, 201
8
Fun
ded
Unf
unde
d
4,29
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2,
400.
00
8,95
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00
104,
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49
20,0
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C-5 2 of 3
Impr
ovem
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escr
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on
Res
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ng a
nd R
epai
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f Bor
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Par
ks a
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ield
s
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men
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Impr
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f the
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Con
trol
Fac
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BO
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AP
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OF
IM
PR
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AT
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S
Ord
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Num
ber
Am
ount
48-1
8 49
-18
50-1
8
$ 50
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.00
46,0
00.0
0
4,77
0,00
0.00
Bal
ance
Dec
. 31
, 201
7 F
unde
d U
nfun
ded
2018
Aut
hori
zati
ons
Var
ious
Sou
rces
$ 50
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.00
46,0
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0
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d C
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ure
Tax
atio
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nfun
ded
4,77
0,00
0.00
Pai
d o
r
Cha
rged
Aut
hori
zati
ons
Can
cell
ed
C-5
3 o
f3
Bal
ance
Dec
. 31
, 201
8 F
unde
d U
nfun
ded
$ 50
,000
.00
46,0
00.0
0
$4,7
70,0
00.0
0
$2,1
71,7
66.9
9 $3
,503
,781
.00
$4,5
29,5
00.0
0 $
4,77
0,00
0.00
$3
,565
,531
.65
$ 50
2,28
3.72
$2
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,451
.62
$8,2
73,7
81.0
0
c c
Cap
ital
Im
prov
emen
t Fun
d
Ope
n S
pace
Tru
st F
und
Aff
orda
ble
Hou
sing
Dev
elop
men
t Tru
st F
und
Pol
ice
Out
side
Dut
y T
rust
Fun
d
Pri
vate
Con
trib
utio
n
$4,2
72,9
00.0
0 16
3,60
0.00
55
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.00
30,0
00.0
0 8,
000.
00
$4,5
29,5
00.0
0
c c
$ 49
5,83
2.20
C
apit
al I
mpr
ovem
ent
Fun
d
6,45
1.52
D
ue to
Op
en S
pace
Tru
st F
und
$ 50
2,28
3.72
C-5 3 of 3
BOROUGH OF MADISON
GENERAL CAPITAL FUND SCHEDULE OF CAPITAL IMPROVEMENT FUND
Ref.
Balance December 31, 2017 c
Increased By:
Improvement Authorizations Cancelled $ 495,832.20 Current Fund Budget Appropriation 3,800,000.00 Grant Funds Received on Fully Funded
Improvement Authorizations 325,385.00
Decreased By:
Appropriation to Finance
Improvement Authorizations
Balance December 31, 2018 c
C-6
$ 1,657,720.07
4,621,217.20
6,278,93 7 .27
4,272,900.00
$ 2,006,03 7 .27
BOROUGH OF MADISON
GENERAL CAPITAL FUND
SCHEDULE OF BOND ANTICIPATION NOTES PAY ABLE
YEAR ENDED DECEMBER 31, 2018
NOT APPLICABLE
C-7
Dat
e o
f A
mou
nt o
f
Pur
pose
Is
sue
Issu
e
Gen
eral
Im
prov
emen
t l 0
115/
08
$ 26
,321
,000
.00
Gen
eral
Im
prov
emen
t 08
115/
13
4,15
1,00
0.00
Ref
undi
ng B
onds
12
/04/
14
14,6
10,0
00.0
0
Ref
.
BO
RO
UG
H O
F M
AD
ISO
N
GE
NE
RA
L C
AP
IT A
L F
UN
D
SC
HE
DU
LE
OF
SE
RIA
L B
ON
DS
PA
Y A
BL
E
Mat
urit
ies
of B
onds
Out
stan
ding
Dec
. 31
, 20
18
Inte
rest
Dat
e A
mou
nt
Rat
e
0811
5119
-26
$ 23
0,00
0.00
3.
00%
0811
5/27
23
0,00
0.00
3.
25%
0811
5/28
21
8,00
0.00
3.
25%
08/1
5/29
14
5,00
0.00
3.
50%
08/1
5/30
-31
145,
000.
00
3.75
%
08/1
5/32
14
5,00
0.00
4.
00%
08/1
5/33
13
3,00
0.00
4.
00%
10/1
5/19
1,
380,
000.
00
5.00
%
10/1
5/20
1,
450,
000.
00
5.00
%
10/1
5/21
-22
1,4 7
5,0
00.0
0 5.
00%
10/1
5/23
-24
1,47
0,00
0.00
5.
00%
10/1
5/25
-26
1,46
5,00
0.00
5.
00%
10/1
5/27
1,
460,
000.
00
4.50
%
10/1
5/28
1,
445,
000.
00
4.50
%
C-8
Bal
ance
B
alan
ce
Dec
. 31
, 20
17
Mat
ured
D
ec.
31,
2018
$ 1,
3 70
,000
.00
$ 1,
3 70
,000
.00
3,23
1,00
0.00
23
0,00
0.00
$
3,00
1,00
0.00
14,5
55,0
00.0
0 14
,555
,000
.00
$ 19
,156
,000
.00
$ 1,
600,
000.
00
$ 17
,556
,000
.00
c c
C-8
BOROUGH OF MADISON
GENERAL CAPITAL FUND
C-9 1 of6
SCHEDULE OF NJ ENVIRONMENT AL INFRASTRUCTURE TRUST LOANS PAY ABLE
I
Trust Loan Fund Loan
Balance December 31, 2017 c $ 725,842.50 $ 1,424,530.85
Decreased by: Loans Paid by Operating Budget 39,072.16 91,041.21
Balance December 31, 2018 c $ 686,770.34 $ 1,333,489.64
SCHEDULE OF PRINCIPAL AND INTEREST PAYMENTS - SERIES 2010A LOAN #S340715-04B TRUST LOAN OUTSTANDING DECEMBER 31, 2018
Payment Maturity Balance
Number Date Interest Principal of Loan
$ 270,000.00
18 211119 $ 5,337.50 270,000.00
19 8/1/19 5,337.50 $ 20,000.00 250,000.00
20 2/1/20 4,937.50 250,000.00
21 8/1/20 4,937.50 20,000.00 230,000.00
22 2/1/21 4,437.50 230,000.00
23 8/1/21 4,437.50 20,000.00 210,000.00
24 211122 4,137.50 210,000.00
25 811122 4,137.50 25,000.00 185,000.00
26 211123 3,637.50 185,000.00
27 8/1123 3,637.50 25,000.00 160,000.00
28 211124 3,137.50 160,000.00
29 8/1/24 3,137.50 25,000.00 135,000.00
30 211125 2,637.50 135,000.00
31 811125 2,637.50 25,000.00 110,000.00
32 211126 2,137.50 110,000.00
33 8/1/26 2,137.50 25,000.00 85,000.00
34 2/1/27 1,700.00 85,000.00
35 8/1/27 1,700.00 25,000.00 60,000.00
36 2/1/28 1,200.00 60,000.00
37 8/1/28 1,200.00 30,000.00 30,000.00
38 211129 600.00 30,000.00
39 8/1/29 600.00 30,000.00 -0-
$ 67,800.00 $ 270,000.00
BOROUGH OF MADISON GENERAL CAPITAL FUND
SCHEDULE OF NJ ENVIRONMENTAL INFRASTRUCTURE TRUST LOANS PAY ABLE
C-9 2 of6
SCHEDULE OF PRINCIPAL AND INTEREST PAYMENTS - 2011 DIRECT LOAN #S3407 l 5-04B-1 TRUST LOAN OUTSTANDING DECEMBER 31, 2018
Payment Maturity Balance
Number Date Interest Principal of Loan
$ 61,770.34
16 2/1/19 $ 1,234.22 61,770.34
17 8/1119 1,234.22 $ 4,187.41 57,582.93
18 211120 1,170.57 57,582.93
19 8/1/20 1,170.57 4,314.70 53,268.23
20 2/1/21 1,099.81 53,268.23
21 8/1/21 1,099.81 4,456.22 48,812.01
22 2/1/22 1,021.61 48,812.01
23 8/1/22 1,021.61 4,612.64 44,199.37
24 2/1/23 937.42 44,199.37
25 8/1/23 937.42 4,781.00 39,418.37
26 2/1/24 845.87 39,418.37
27 8/1/24 845.87 4,964.11 34,454.26
28 211/25 746.59 34,454.26
29 8/1/25 746.59 5,162.68 29,291.58
30 2/1/26 639.98 29,291.58
31 8/1/26 639.98 5,375.89 23,915.69
32 2/1/27 525.74 23,915.69
33 8/1/27 525.74 5,604.37 18,311.32
34 2/1/28 405.81 18,311.32
35 8/1/28 405.81 5,844.24 12,467.08
36 211129 278.69 12,467.08
37 8/1/29 278.69 6,098.46 6,368.62
38 211/30 143.61 6,368.62
39 8/1/30 143.61 6,368.62 -0-
$ 18,099.84 $ 61,770.34
BOROUGH OF MADISON GENERAL CAPITAL FUND
SCHEDULE OF NJ ENVIRONMENT AL INFRASTRUCTURE TRUST LOANS PAY ABLE
C-9 3 of6
SCHEDULE OF PRINCIPAL AND INTEREST PAYMENTS - SERIES 20 I SA LOAN #S340715-05B-1 TRUST LOAN OUTSTANDING DECEMBER 31, 2018
Payment Maturity Balance Number Date Interest Principal of Loan
$ 355,000.00 8 2/1/19 $ 7,825.00 355,000.00 9 8/1/19 7,825.00 $ 15,000.00 340,000.00 10 211120 7,450.00 340,000.00 11 8/1/20 7,450.00 15,000.00 325,000.00 12 2/1/21 7,075.00 325,000.00 13 8/1/21 7,075.00 15,000.00 310,000.00 14 211122 6,700.00 310,000.00 15 8/1/22 6,700.00 20,000.00 290,000.00 16 2/1/23 6,200.00 290,000.00 17 8/1/23 6,200.00 20,000.00 270,000.00 18 211124 5,700.00 270,000.00 19 8/1/24 5,700.00 20,000.00 250,000.00 20 211125 5,200.00 250,000.00 21 8/1/25 5,200.00 20,000.00 230,000.00 22 211126 4,700.00 230,000.00 23 8/1/26 4,700.00 20,000.00 210,000.00 24 2/1/27 4,200.00 210,000.00 25 8/1/27 4,200.00 25,000.00 185,000.00 26 2/1/28 3,700.00 185,000.00 27 8/1/28 3,700.00 25,000.00 160,000.00 28 2/1/29 3,200.00 160,000.00 29 8/1/29 3,200.00 25,000.00 135,000.00 30 2/1/30 2,700.00 135,000.00 31 811/30 2,700.00 25,000.00 110,000.00 32 2/1/31 2,200.00 110,000.00 33 8/1/31 2,200.00 25,000.00 85,000.00 34 2/1/32 1,700.00 85,000.00 35 8/1/32 1,700.00 25,000.00 60,000.00 36 2/1/33 1,200.00 60,000.00 37 8/1/33 1,200.00 30,000.00 30,000.00 38 2/1/34 600.00 30,000.00 39 8/1/34 600.00 30,000.00 -0-
$ 140,700.00 $ 355,000.00
BOROUGH OF MADISON GENERAL CAPITAL FUND
SCHEDULE OF NJ ENVIRONMENT AL INFRASTRUCTURE TRUST LOANS PAY ABLE
C-9 4 of6
SCHEDULE OF PRINCIPAL AND INTEREST PAYMENTS - SERIES 2010 LOAN #S340715-04B FUND LOAN OUTSTANDING DECEMBER 31. 2018
Payment Maturity Balance Number Date Principal of Loan
$ 228,203.50 18 2/1119 $ 6,915.25 221,288.25 19 8/1119 13,830.50 207,457.75 20 2/1/20 6,915.25 200,542.50 21 8/1120 13,830.50 186,712.00 22 2/1/21 6,915.25 179,796.75 23 8/1121 13,830.50 165,966.25 24 2/1/22 6,915.25 159,051.00 25 8/1/22 13,830.50 145,220.50 26 2/1123 6,915.25 138,305.25 27 8/1123 13,830.50 124,474.75 28 2/1/24 6,915.25 117,559.50 29 8/1124 13,830.50 103,729.00 30 2/1125 6,915.25 96,813.75 31 8/1125 13,830.50 82,983.25 32 2/1/26 6,915.25 76,068.00 33 8/1126 13,830.50 62,237.50 34 2/1127 6,915.25 55,322.25 35 8/1/27 13,830.50 41,491.75 36 2/1/28 6,915.25 34,576.50 37 8/1128 13,830.50 20,746.00 38 2/1/29 6,915.25 13,830.75 39 811/29 13,830.75 -0-
$ 228,203.50
BOROUGH OF MADISON GENERAL CAPITAL FUND
SCHEDULE OF NJ ENVIRONMENT AL INFRASTRUCTURE TRUST LOANS PAY ABLE
C-9 5 of6
SCHEDULE OF PRINCIPAL AND INTEREST PAYMENTS - 2011 DIRECT LOAN #S340715-04B-1 FUND LOAN OUTSTANDING DECEMBER 31, 2018
Payment Maturity Balance Number Date Principal of Loan
$ 53,606.14 16 2/1/19 $ 1,521.82 52,084.32 17 8/1/19 3,043.64 49,040.68 18 2/1/20 1,521.82 47,518.86 19 8/1/20 3,043.64 44,475.22 20 2/1/21 1,521.82 42,953.40 21 8/1/21 3,043.64 39,909.76 22 2/1/22 1,521.82 38,387.94 23 8/1/22 3,043.64 35,344.30 24 2/1/23 1,521.82 33,822.48 25 8/1/23 3,043.64 30,778.84 26 2/1/24 1,521.82 29,257.02 27 8/1/24 3,043.64 26,213.38 28 2/1/25 1,521.82 24,691.56 29 8/1/25 3,043.64 21,647.92
30 2/1/26 1,521.82 20,126.10 31 8/1/26 3,043.64 17,082.46 32 2/1/27 1,521.82 15,560.64 33 8/1/27 3,043.64 12,517.00 34 2/1/28 1,521.82 10,995.18 35 8/1/28 3,043.64 7,951.54
36 2/1/29 1,521.82 6,429.72 37 8/1/29 3,043.64 3,386.08 38 2/1/30 1,521.82 1,864.26
39 8/1/30 1,864.26 (0.00)
$ 53,606.14
BOROUGH OF MADISON GENERAL CAPITAL FUND
SCHEDULE OF NJ ENVIRONMENT AL INFRASTRUCTURE TRUST LOANS PAY ABLE
C-9
6 of6
SCHEDULE OF PRINCIPAL AND INTEREST PAYMENTS - SERIES 2015A LOAN #S3407 l 5-05B-l FUND LOAN OUTSTANDING DECEMBER 31, 2018
Payment Maturity Balance Number Date Principal of Loan
$ 1,051,680.00
9 2/1119 $ 21,910.00 1,029,770.00
10 8/1119 43,820.00 985,950.00 11 211120 21,910.00 964,040.00 12 8/1/20 43,820.00 920,220.00
13 2/1121 21,910.00 898,310.00 14 8/1121 43,820.00 854,490.00 15 2/1122 21,910.00 832,580.00 16 8/1122 43,820.00 788,760.00 17 2/1123 21,910.00 766,850.00 18 8/1123 43,820.00 723,030.00 19 2/1124 21,910.00 701,120.00 20 8/1124 43,820.00 657,300.00 21 2/1125 21,910.00 635,390.00 22 8/1125 43,820.00 591,570.00 23 2/1126 21,910.00 569,660.00 24 8/1126 43,820.00 525,840.00 25 211/27 21,910.00 503,930.00 26 8/1127 43,820.00 460,110.00 27 2/1/28 21,910.00 438,200.00 28 8/1/28 43,820.00 394,380.00 29 2/1/29 21,910.00 372,470.00 30 8/1129 43,820.00 328,650.00
31 2/1130 21,910.00 306,740.00 32 8/1130 43,820.00 262,920.00 33 2/1131 21,910.00 241,010.00
34 8/1/31 43,820.00 197,190.00 35 2/1/32 21,910.00 175,280.00
36 8/1/32 43,820.00 131,460.00 37 2/1133 21,910.00 109,550.00
38 8/1/33 43,820.00 65,730.00 39 2/1134 21,910.00 43,820.00 40 8/1/34 43,820.00 -0-
$ 1,051,680.00
Ord
inan
ce
No.
D
ate
28-0
9 07
/16/
09
47-1
4 09
/08/
14
53-1
4 11
/24/
14
50-1
8 11
/26/
18
BO
RO
UG
H O
F M
AD
ISO
N
GE
NE
RA
L C
AP
ITA
L F
UN
D
SC
HE
DU
LE
OF
BO
ND
S A
ND
NO
TE
S A
UT
HO
RIZ
ED
BU
T N
OT
IS
SU
ED
Bal
ance
Impr
ovem
ent D
escr
ipti
on
Dec
. 31
, 20
17
Impr
ovem
ent
of t
he M
adis
on-C
hath
am J
oint
Mee
ting
's
Mol
itor
Wat
er P
ollu
tion
Con
trol
Fac
ilit
y $
181,
068.
00
Ref
undi
ng B
ond
Ord
inan
ce
2,89
0,00
0.00
Reh
abil
itat
ion
of t
he M
adis
on-C
hath
am J
oint
Mee
ting
's
Mol
itor
Wat
er P
ollu
tion
Con
trol
Fac
ilit
y 44
2,41
3.00
Impr
ovem
ent
of t
he M
adis
on-C
hath
am J
oint
Mee
ting
's
Mol
itor
Wat
er P
ollu
tion
Con
trol
Fac
ilit
y
$ 3,
513,
481.
00
C-1
0
2018
B
alan
ce
Aut
hori
zati
ons
Dec
. 31
, 20
18
$ 18
1,06
8.00
2,89
0,00
0.00
442,
413.
00
$ 4,
770
,000
.00
4, 7
70,0
00.0
0
$ 4,
770,
000.
00
$ 8,
283,
481.
00 C-10
BOROUGH OF MADISON COUNTY OF MORRIS
2018 WATER UTILITY FUND
D-4
BO
RO
UG
H O
F M
AD
ISO
N
WA
TE
R U
TIL
ITY
FU
ND
S
CH
ED
UL
E O
F C
AS
H-T
RE
AS
UR
ER
Ref
. O
pera
ting
C
apit
al
Bal
ance
Dec
embe
r 31
, 20
1 7
D
$ 1,
784,
352.
66
$ 2,
673,
429.
27
Incr
ease
d by
Rec
eipt
s:
Con
sum
er A
ccou
nts
Rec
eiva
ble
$ 2,
494,
872.
60
Mis
cell
aneo
us R
even
ue
212,
926.
64
Due
to C
urre
nt F
und:
A
ntic
ipat
ed R
even
ue -
Sew
er F
ees
0.03
D
ue f
rom
/to
Wat
er U
tili
ty C
apit
al F
und:
P
rior
Yea
r In
terf
und
Ret
urne
d 1,
394.
22
Due
to W
ater
Uti
lity
Ope
rati
ng F
und:
In
tere
st o
n In
vest
men
ts
$ 2,
193.
58
Wat
er U
tili
ty O
pera
ting
Fun
d B
udge
t App
ropr
iati
on:
Cap
ital
Im
prov
emen
t F
und
900,
000.
00
2,70
9,19
3.49
90
2,19
3.58
4,
493,
546.
15
3,57
5,62
2.85
Dec
reas
ed b
y D
isbu
rsem
ents
: 20
18 A
ppro
pria
tion
Exp
endi
ture
s 2,
192,
408.
50
2017
App
ropr
iati
on R
eser
ves
87,3
31.0
6 D
ue to
Cur
rent
Fun
d:
Ant
icip
ated
Rev
enue
20
0,00
0.00
In
terf
und
Ret
urne
d 1,
134.
35
Due
to W
ater
Uti
lity
Ope
rati
ng F
und:
P
rior
Yea
r In
terf
und
Ret
urne
d 1,
394.
22
Impr
ovem
ent
Aut
hori
zati
on E
xpen
ditu
res
1,06
8,33
2.56
2,
480,
873.
91
1,06
9,72
6.78
Bal
ance
Dec
embe
r 31
, 20
18
D
$ 2,
012,
672.
24
$ 2,
505,
896.
07
D-4
D-5
BO
RO
UG
H O
F M
AD
ISO
N
WA
TE
R U
TIL
ITY
CA
PIT
AL
FU
ND
AN
AL
YS
IS O
F W
AT
ER
CA
PIT
AL
CA
SH
Rec
eipt
s D
isbu
rsem
ents
T
rans
fers
2018
Im
prov
emen
t
Bal
ance
B
udge
t A
utho
ri-
Bal
ance
Dec
. 3
I, 2
017
App
ropr
iati
on
Mis
cell
aneo
us
zati
ons
Mis
cell
aneo
us
Fro
m
To
Dec
. 31
, 201
8
Due
to W
ater
Util
ity O
pera
ting
Fun
d $
651.
70
$ 2,
193.
58
$ 1,
394.
22
$ 1,
451.
06
Cap
ital
Im
prov
emen
t Fu
nd
376,
166.
88
$ 90
0,00
0.00
$
980,
000.
00
296,
166.
88
Res
erve
for
Aut
omat
ed M
eter
Rea
ding
1,
000,
000.
00
200,
000.
00
800,
000.
00
Ord
.
No.
G
ener
al I
mpr
ovem
ents
07-1
0 20
I 0
Wat
er W
ell
Pum
p S
tati
on C
ontr
ol R
epai
rs
2,70
0.00
2,
700.
00
26-1
2 W
ater
Sys
tem
Com
pone
nts
50.8
5 50
.85
7-16
C
onst
ruct
ion
of W
ater
Mai
n R
epla
cem
ent a
nd
Rel
ated
Wor
k on
Loc
al R
oads
10
,176
.22
10,1
76.2
2
27-1
6 W
ell
Upg
rade
s 6,
975.
00
6,97
5.00
35-1
6 20
16 W
ater
Im
prov
emen
ts P
rogr
am
80,2
80.0
0 $
55,6
18.5
4 24
,661
.46
47-1
6 P
urch
ase
of U
tili
ty M
eter
s, H
andh
eld
Rea
ding
Dev
ices
and
Acc
esso
ries
35
,900
.00
17,3
75.0
0 18
,525
.00
03-1
7 W
ater
Mai
n R
epla
cem
ent P
roje
cts
and
Rel
ated
Wor
k on
Loc
al R
oads
21
1,26
7.27
44
,337
.67
166,
929.
60
38-1
7 C
entr
al A
venu
e W
ater
Mai
n R
epla
cem
ent P
roje
ct
949,
261.
35
949,
261.
35
11-1
8 P
urch
ase
of
Uti
lity
Met
ers
and
Acc
esso
ries
$
200,
000.
00
200,
000.
00
18-1
8 20
18 W
ater
Uti
lity
Pro
gram
Im
prov
emen
ts
1,74
0.00
68
0,00
0.00
67
8,26
0.00
35
-18
Wat
er U
tili
ty W
ork
at W
ell
A
300,
000.
00
300,
000.
00
$ 2,
673,
429.
27
$ 90
0,00
0.00
$
2,19
3.58
$
1,06
8,33
2.56
$
1,39
4.22
$
1,18
0,00
0.00
$
I, 1
80,0
00.0
0 $
2,50
5,89
6.07
D-5
BOROUGH OF MADISON WATER UTILITY OPERATING FUND
SCHEDULE OF CONSUMER ACCOUNTS RECEIVABLE
Ref.
Balance December 31, 2017 D
Increased by: Water Rents Levied
Decreased by: Water Collections
Balance December 31, 2018 D
D-6
$ 180,385.69
2,485,996.84 2,666,382.53
2,494,872.60
$ 1712509.93
Land Reservations Land Pump Station Land Storage Reservoir Springs and Wells Supply Mains Pump Station Structure Electric Pumping Equipment Other Pumping Equipment Standpipe Tanks Distribution Mains Service Pipes and Stops Meters Fire Hydrants Foundations General Structure General Equipment Engineering and Superintendence Office Equipment Ford Pickup Buildings and Renovations New Services Bursting Machine Utility Truck and Mailing Equipment hnprovement to Well "B" Utility Trucks Removal of Underground Storage Tanks Engineering Utility Truck Pipe and Road Repair Water Mains Madison Avenue Water Tank Green Village Road Water Main Midwood Terrace Water Tank Improvements on Morris Place Backhoe Repair of Well Leaks Construction of Air Stripping Facility Water Utility Truck Water Main Replacement - Greenwood Avenue
BOROUGH OF MADISON WATER UTILITY CAPITAL FUND SCHEDULE OF FIXED CAPITAL
Balance Dec. 31, 2017
$ 10,957.98 10,020.00 3,515.80
249,427.04 3,727.00
103,777.04 173,571.25
13,282.28 267,878.60
2,289,647.42 209,906.91 199,478.71 100,316.90
328.40 27,605.56 31,112.46
1,570.18 6,651.24
611.00 75,712.19
35.00 1,423.25
21,925.72 3,932.08
37,042.00 27,810.40
130,000.00 23,052.00
150,000.00 14,015.69
113,012.50 191,014.67 159,671.00 50,000.00 35,000.00
6,827.57 1,255,712.10
30,552.07 299,805.22
Additions by
Ordinance
$
Balance
D-7 1 of3
Dec. 31, 2018
10,957.98 10,020.00 3,515.80
249,427.04 3,727.00
103,777.04 173,571.25
13,282.28 267,878.60
2,289,647.42 209,906.91 199,478.71 100,316.90
328.40 27,605.56 31,112.46
1,570.18 6,651.24
611.00 75,712.19
35.00 1,423.25
21,925.72 3,932.08
37,042.00 27,810.40
130,000.00 23,052.00
150,000.00 14,015.69
113,012.50 191,014.67 159,671.00 50,000.00 35,000.00 6,827.57
1,255,712.10 30,552.07
299,805.22
BOROUGH OF MADISON WATER UTILITY CAPITAL FUND SCHEDULE OF FIXED CAPITAL
(Continued)
Water Main Improvements on Edgewood Road, Greenhill Road and Highway Terrace
Utility Billing System Water System - Improvement - Kings Road Replace Generator Engine and Drive - Well C Improvements on Elm Street and West End Avenue Tower Aeration System Improvement on Elmer, West and Elm Streets VOC Contamination - Well D One Ton Truck with Tailgate Lift Water Main - Dehart Place and Cedar Street Waterline Replacement - Walnut Street Professional Engineering Services for
Modifications and Update of Contract Plans and Specifications for the Borough's Well D VOC Treatment Facility
2003 Water Utility Program Improvements Upgrades to Kings Road - Water Main 2004 Water Utility Program Arbitration Award to Van Wingerden General
Contracting Co. 2004 Water Main Replacement Purchase of Utility Truck Purchase Portable Lighting Award of the Project Title "Water System
Improvements - Well D VOC Removal Facility" 2005 Water Main Replacement Program Purchase of Water Meters and Transmitters Update Well E New Chlorine Vacuum for the Water Wells Purchase of a Car for the Water Meter Reader Asbestos Abatement for the Water & Light Plant Purchase of 20 Cubic Yard Locking Dumpster
for the Water Department Paint Madison Avenue Water Tank Various Repairs at Five Water Wells Water Main Replacements on Municipal Roads Computer Upgrades and Replacements in the
Water System Water Wells
$
Balance Dec. 31, 2017
173,974.59 39,698.50 41,566.80 18,000.00 8,977.96
87,146.56 3,277.98 7,500.00
32,065.00 71,892.90 81,049.15
124,500.00 318,238.37 167,967.78 390,000.00
69,000.00 10,567.00 34,800.08
7,295.00
1,374,178.67 524,741.05
74,943.00 20,502.00 10,920.00 10,546.00 19,725.00
4,953.85 233,429.68
14,795.00 699,490.05
20,990.41
Additions by
Ordinance
$
D-7 2 of3
Balance Dec. 31, 2018
173,974.59 39,698.50 41,566.80 18,000.00 8,977.96
87,146.56 3,277.98 7,500.00
32,065.00 71,892.90 81,049.15
124,500.00 318,238.37 167,967.78 390,000.00
69,000.00 10,567.00 34,800.08
7,295.00
1,374,178.67 524,741.05
74,943.00 20,502.00 10,920.00 10,546.00 19,725.00
4,953.85 233,429.68
14,795.00 699,490.05
20,990.41
D-7 3 of3
BOROUGH OF MADISON WATER UTILITY CAPITAL FUND SCHEDULE OF FIXED CAPITAL
(Continued)
Additions Balance by Balance
Dec. 31, 2017 Ordinance Dec. 31, 2018
Purchase of a Water Leak Detector for the Water Department $ 13,494.65 $ 13,494.65
Purchase and Installation of a New Steam Boiler for the Water & Light Plant on an Emergency Basis 10,299.00 10,299.00
Water Main Replacement Projects Covering the Fletcher and a Portion of Niles Avenue 865,444.34 865,444.34
Water Main Replacement on Green Avenue (Shunpike Rd to Midwood Terr) 233,821.71 233,821.71
Improvements to Lincoln Place 125,000.00 125,000.00 Upgrades to Water System Water Wells 10,000.00 10,000.00 Construction of Water Main Replacement on Vinton
Road and Belmont A venue 232,858.71 232,858.71 Installation of Fire Alarm System at Water and Light Plant 4,950.00 4,950.00 Construction of Water Main Replacement on Academy
Road and Division A venue 305,512.68 305,512.68 Water Main Replacement of Municipal Roads 671,894.59 671,894.59 Purchase of Utility Truck and Accessories 62,465.14 62,465.14 Resurfacing a Section of State Highway 124 24,977.00 24,977.00 Purchase of Back Hoe for DPW 100,631.28 100,631.28 Purchase of Skid Steer with Attachments for the Water Department 75,938.07 75,938.07 Well Upgrades 14,596.42 14,596.42 Purchase of New Generator at Well E 139,830.56 139,830.56 Purchase of a Mini Excavator with Accessories 69,382.07 69,382.07 Central Avenue Water Main Replacement Project $ 950,000.00 950,000.00
$ 13,987,757.83 $ 950,000.00 $ 14,937,757.83
D D
BO
RO
UG
H O
F M
AD
ISO
N
WA
TE
R U
TIL
ITY
CA
PIT
AL
FU
ND
S
CH
ED
UL
E O
F F
IXE
D C
AP
ITA
L A
UT
HO
RIZ
ED
AN
D U
NC
OM
PL
ET
ED
Ord
. B
alan
ce
2018
Im
prov
emen
t Des
crip
tion
N
o.
Dec
. 31
, 20
17
Aut
hori
zati
ons
2010
Wat
er W
ell
Pum
p S
tati
on C
ontr
ol R
epai
rs
07-1
0 $
54,9
70.0
0 W
ater
Sys
tem
Com
pone
nts
26-1
2 15
0,00
0.00
Con
stru
ctio
n o
f Wat
er M
ain
Rep
lace
men
t an
d 7-
16
Rel
ated
Wor
k on
Loc
al R
oads
26
0,35
6.24
Wel
l U
pgra
des
27-1
6 10
,000
.00
2016
Wat
er I
mpr
ovem
ents
Pro
gram
35
-16
190,
000.
00
Pur
chas
e o
f Uti
lity
Met
ers,
Han
dhel
d R
eadi
ng
47-1
6 D
evic
es a
nd A
cces
sori
es
40,0
00.0
0 W
ater
Mai
n R
epla
cem
ent P
roje
cts
and
Rel
ated
03
-17
Wor
k on
Loc
al R
oads
40
0,00
0.00
C
entr
al A
venu
e W
ater
Mai
n R
epla
cem
ent P
roje
ct
38-1
7 95
0,00
0.00
P
urch
ase
of U
tili
ty M
eter
s an
d A
cces
sori
es
11-1
8 $
200,
000.
00
2018
Wat
er U
tili
ty P
rogr
am I
mpr
ovem
ents
18
-18
680,
000.
00
Wat
er U
tili
ty W
ork
at W
ell
A
35-1
8 30
0,00
0.00
$ 2,
055,
326.
24
$ 1,
180,
000.
00
Ref
. D
D-8
Tra
nsfe
rred
to
Fix
ed
Bal
ance
C
apit
al
Dec
. 31
, 20
18
$ 54
,970
.00
150,
000.
00
260,
356.
24
10,0
00.0
0
190,
000.
00
40,0
00.0
0
400,
000.
00
$ 95
0,00
0.00
200,
000.
00
680,
000.
00
300,
000.
00
$ 95
0,00
0.00
$
2,28
5,32
6.24
D
D-8
Operating: Salaries and Wages Other Expenses
Statutory Expenditures: Contribution to:
BOROUGH OF MADISON WATER UTILITY OPERA TING FUND
SCHEDULE OF 2017 APPROPRIATION RESERVES YEAR ENDED DECEMBER 31. 2018
Balance Balance After Dec. 31, 2017 Modification
$ 57,084.61 $ 57,084.61 412,922.95 412,922.95 $
Public Employees Retirement System 3,198.53 3,198.53 Social Security System 12,480.28 12,480.28
$ 485,686.37 $ 485,686.37 $
Analysis of Balance December 31, 2017 Ref.
Encumbered D $ 110,101.29 Unencumbered D 375,585.08
$ 485,686.37
D-9
Paid or Balance Charged Lapsed
$ 57,084.61 87,331.06 325,591.89
3,198.53 12,480.28
87,331.06 $ 398,355.31
Ord
.
No.
Im
prov
emen
t D
escr
ipti
on
07-1
0 20
10 W
ater
Wel
l P
ump
Sta
tion
Con
trol
Rep
airs
26
-12
Wat
er S
yste
m C
ompo
nent
s 07
-16
Con
stru
ctio
n o
f Wat
er M
ain
Rep
lace
men
t and
R
elat
ed W
ork
on L
ocal
Roa
ds
27-1
6 W
ell
Upg
rade
s 35
-16
2016
Wat
er I
mpr
ovem
ents
Pro
gram
47
-16
Pur
chas
e o
f Uti
lity
Met
ers,
Han
dhel
d R
eadi
ng
Dev
ices
and
Acc
esso
ries
03
-17
Wat
er M
ain
Rep
lace
men
t P
roje
cts
and
Rel
ated
W
ork
on L
ocal
Roa
ds
38-1
7 C
entr
al A
venu
e W
ater
Mai
n R
epla
cem
ent
Pro
ject
11
-18
Pur
chas
e o
f U
tility
Met
ers
and
Acc
esso
ries
18
-18
2018
Wat
er U
tili
ty P
rogr
am I
mpr
ovem
ents
35
-18
Wat
er U
tili
ty W
ork
at W
ell
A
BO
RO
UG
H O
F M
AD
ISO
N
WA
TE
R U
TIL
ITY
CA
P IT
AL
FU
ND
S
CH
ED
UL
E O
F I
MP
RO
VE
ME
NT
AU
TH
OR
IZA
TIO
NS
2018
Aut
hori
zati
ons
Bal
ance
C
apit
al
Res
erve
O
rdin
ance
D
ec.3
1,2
01
7
Impr
ovem
ent
for
Aut
omat
ed
Dat
e A
mou
nt
Fun
ded
Fun
d M
eter
Rea
ding
02/2
2/10
$
60,0
00.0
0 $
2,70
0.00
09
/27/
12
150,
000.
00
50.8
5
01/2
5/16
27
0,00
0.00
10
,176
.22
0412
5116
10
,000
.00
6,97
5.00
04
/25/
16
190,
000.
00
80,2
80.0
0
05/2
3116
40
,000
.00
35,9
00.0
0
01/2
3/17
40
0,00
0.00
21
1,26
7.27
09
/25/
17
950,
000.
00
949,
261.
35
03/1
2/18
20
0,00
0.00
$
200,
000.
00
04/0
9/18
68
0,00
0.00
$
680,
000.
00
06/2
5/18
30
0,00
0.00
30
0,00
0.00
$ 1,
296,
610.
69
$ 98
0,00
0.00
$
200,
000.
00
Ref
. D
D-1
0
Bal
ance
P
aid
or
Dec
. 31
, 201
8
Cha
rged
F
unde
d
$ 2,
700.
00
50.8
5
10,1
76.2
2 6,
975.
00
$ 55
,618
.54
24,6
61.4
6
17,3
75.0
0 18
,525
.00
44,3
37.6
7 16
6,92
9.60
94
9,26
1.35
20
0,00
0.00
1,
740.
00
678,
260.
00
300,
000.
00
$ 1,
068,
332.
56
$ 1,
408,
278.
13
D
D-10
BOROUGH OF MADISON WATER UTILITY FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
Ref.
Balance December 31, 201 7 D
Increased by: Water Operating Fund Budget Appropriation
Decreased by: Appropriated to Finance
Improvement Authorizations
Balance December 31, 2018 D
D-11
$ 376,166.88
900,000.00 1,276,166.88
980,000.00
$ 296,166.88
Ord
. N
o.
07-1
0
26-1
2
7-16
27-1
6 35
-16
47-1
6
03-1
7
38-1
7
11-1
8
18-1
8
35-1
8
BO
RO
UG
H O
F M
AD
ISO
N
WA
TE
R U
TIL
ITY
CA
PIT
AL
FU
ND
S
CH
ED
UL
E O
F D
EF
ER
RE
D R
ES
ER
VE
FO
R A
MO
RT
IZA
TIO
N
Dat
e o
f B
alan
ce
2018
Im
prov
emen
t D
escr
ipti
on
Ord
inan
ce
Dec
. 31
, 20
1 7
Aut
hori
zati
ons
2010
Wat
er W
ell
Pum
p S
tati
on C
ontr
ol R
epai
rs
02/2
2/10
$
54,9
70.0
0
Wat
er S
yste
m C
ompo
nent
s 09
/27/
12
150,
000.
00
Con
stru
ctio
n o
f Wat
er M
ain
Rep
lace
men
t an
d
Rel
ated
Wor
k on
Loc
al R
oads
01
125/
16
260,
356.
24
Wel
l U
pgra
des
04/2
5/16
10
,000
.00
2016
Wat
er I
mpr
ovem
ents
Pro
gram
04
/25/
16
190,
000.
00
Pur
chas
e o
f Uti
lity
Met
ers,
Han
dhel
d R
eadi
ng
Dev
ices
and
Acc
esso
ries
05
/23/
16
40,0
00.0
0 W
ater
Mai
n R
epla
cem
ent
Pro
ject
s an
d R
elat
ed
Wor
k on
Loc
al R
oads
01
/23/
17
400,
000.
00
Cen
tral
Ave
nue
Wat
er M
ain
Rep
lace
men
t P
roje
ct
09/2
5/17
95
0,00
0.00
Pur
chas
e o
f Uti
lity
Met
ers
and
Acc
esso
ries
03
/12/
18
$ 20
0,00
0.00
2018
Wat
er U
tili
ty P
rogr
am I
mpr
ovem
ents
04
/09/
18
680,
000.
00
Wat
er U
tili
ty W
ork
at W
ell
A
06/2
5/18
30
0,00
0.00
$ 2,
055,
326.
24
$ 1,
180,
000.
00
Ref
. D
D-1
2
Tra
nsfe
rred
to
Res
erve
for
B
alan
ce
Am
orti
zati
on
Dec
. 31
, 20
18
$ 54
,970
.00
150,
000.
00
260,
356.
24
10,0
00.0
0
190,
000.
00
40,0
00.0
0
400,
000.
00
$ 95
0,00
0.00
200,
000.
00
680,
000.
00
300,
000.
00
$ 95
0,00
0.00
$
2,28
5,32
6.24
D
D-12
BOROUGH OF MADISON COUNTY OF MORRIS
2018 ELECTRIC UTILITY FUND
Bal
ance
Dec
embe
r 31
, 20
17
Incr
ease
d by
Rec
eipt
s:
Ele
ctri
c U
tili
ty C
harg
es R
ecei
vabl
e
Mis
cell
aneo
us R
even
ue
Stat
e A
id -
"Lif
elin
e"
App
ropr
iati
on R
efun
ds
App
ropr
iati
on R
eser
ves
Ref
unds
Due
to/
from
Ele
ctri
c U
tili
ty O
pera
ting
Fun
d:
Inte
rest
Ear
ned
on I
nves
tmen
ts
Bud
get
App
ropr
iati
on -
Cap
ital
Im
prov
emen
t F
und
BO
RO
UG
H O
F M
AD
ISO
N
EL
EC
TR
IC U
TIL
ITY
FU
ND
SC
HE
DU
LE
OF
CA
SH
-T
RE
AS
UR
ER
Ref
. O
pera
ting
E
$
$ 21
,690
,249
.05
207,
190.
16
16,3
12.5
0
233,
252.
41
2,70
0.00
Bud
get
App
ropr
iati
on -
Ele
ctri
c U
tili
ty S
ubst
atio
n R
eser
ve
Due
fro
m/t
o E
lect
ric
Uti
lity
Cap
ital
Fun
d:
Pri
or Y
ear
Inte
rfun
d R
etur
ned
1,25
6.09
Dec
reas
ed b
y D
isbu
rsem
ents
:
2018
App
ropr
iati
on E
xpen
ditu
res
13,9
59,9
15.0
1 20
1 7
App
ropr
iati
on R
eser
ves
815,
979.
90
Due
to C
urre
nt F
und:
Ant
icip
ated
Rev
enue
7,
045,
153.
00
Due
to E
lect
ric
Uti
lity
Ope
rati
ng F
und:
P
rior
Yea
r In
terf
und
Ret
urne
d
Impr
ovem
ent A
utho
riza
tion
Exp
endi
ture
s
Bal
ance
Dec
embe
r 31
, 201
8 E
$
E-5
Cap
ital
11,7
02,4
73.8
8 $
2,45
6,12
5.66
$ 2,
607.
61
595,
000.
00
300,
000.
00
22, 1
50,9
60.2
1 89
7,60
7.61
33
,853
,434
.09
3,35
3,73
3.27
1,25
6.09
560,
866.
55
21,8
21,0
47.9
1 56
2,12
2.64
12,0
32,3
86.1
8 $
2,79
1,61
0.63
E-5
BOROUGH OF MADISON
ELECTRIC UTILITY OPERA TING FUND
SCHEDULE OF CASH - COLLECTOR
YEAR ENDED DECEMBER 31, 2018
NOT APPLICABLE
E-6
E-7
BO
RO
UG
H O
F M
AD
ISO
N
EL
EC
TR
IC U
TIL
ITY
CA
PIT
AL
FU
ND
A
NA
LY
SIS
OF
EL
EC
TR
IC C
AP
ITA
L C
AS
H
Rec
eipt
s D
isbu
rsem
ents
Bal
ance
B
udge
t Im
prov
emen
t T
rans
fers
B
alan
ce
Dec
. 31
, 201
7 A
ppro
pria
tion
M
isce
llan
eous
A
utho
riza
tion
s M
isce
llan
eous
F
rom
T
o D
ec.
31, 2
018
Cap
ital
Im
prov
emen
t Fun
d $
899,
257.
46
$ 59
5,00
0.00
$
690,
000.
00
$ 15
3,88
8.10
$
958,
145.
56
Due
to E
lect
ric
Uti
lity
Ope
rati
ng F
und
632.
52
$ 2,
607.
61
$ 1,
256.
09
1,98
4.04
Res
erve
for
Mad
ison
Ele
ctri
c U
tili
ty S
ubst
atio
n 60
0,00
0.00
30
0,00
0.00
90
0,00
0.00
Impr
ovem
ent A
utho
riza
tion
s:
Ord
. N
o.
Gen
eral
Im
prov
emen
ts
10-1
3 P
urch
ase
and
Inst
alla
tion
of D
esic
cant
Bre
athe
r
Sys
tem
s an
d O
il F
iltr
atio
n S
yste
ms
10,6
23.1
0 10
,623
.10
43-1
3 R
epai
rs t
o W
ater
and
Lig
ht B
uild
ing
34,3
12.2
1 $
6,25
0.00
28
,062
.21
15-1
4 P
urch
ase
of F
iber
Opt
ic P
ilot
Wir
e R
elay
Sys
tem
B
etw
een
Kin
gs R
oad
and
Jam
es P
ark
Sub
stat
ions
30
,000
.00
30,0
00.0
0
30-1
5 P
urch
ase
of P
ole
Bar
n fo
r S
tora
ge
120,
000.
00
500.
00
119,
500.
00
37-1
5 S
igna
liza
tion
Im
prov
emen
ts
13,2
65.6
0 13
,265
.60
56-1
5 A
utom
ated
Met
er P
ilot
Pro
gram
35
,000
.00
35,0
00.0
0
17-1
6 N
ew H
isto
ric
Lam
ppos
ts o
n K
ings
Roa
d 16
,372
.27
16,3
72.2
7
19-1
6 P
urch
ase
of N
ew S
ecur
ity
Fenc
e at
the
Kin
gs R
oad
and
Jam
es P
ark
Sub
stat
ions
11
1,42
7.00
11
1,42
7.00
20-1
6 R
epla
cem
ent o
f Exi
stin
g O
utdo
or S
tair
way
at
Kin
gs
Roa
d S
ubst
atio
n 30
,000
.00
7,90
0.00
22
,100
.00
21-1
6 P
urch
ase
and
Inst
alla
tion
of S
ecur
ity
Cam
eras
at t
he
Kin
gs R
oad
and
Jam
es P
ark
Sub
stat
ions
9,
120.
00
9,12
0.00
36
-16
Pur
chas
e o
f Aut
omat
ed M
eter
s an
d a
Han
dhel
d M
eter
Rea
ding
Dev
ice
20,1
00.0
0 20
,100
.00
48-1
6 P
urch
ase
of U
tili
ty M
eter
s, H
andh
eld
Rea
ding
Dev
ices
and
Acc
esso
ries
6,
346.
00
2,23
6.00
4,
110.
00
55-1
6 T
raff
ic S
igna
l and
Cal
l B
ox I
mpr
ovem
ents
8,
015.
50
920.
00
7,09
5.50
9-
17
Pur
chas
e o
f Tw
o D
oubl
e B
ucke
t Tru
cks
440,
000.
00
414,
190.
20
25,8
09.8
0 19
-17
Pur
chas
e o
f a P
ad-M
ount
Tra
nsfo
rmer
for
the
B-W
ell
Wat
er P
umpi
ng S
tati
on
22,4
78.0
0 22
,478
.00
41-1
7 P
urch
ase
of M
eter
s w
ith
Rad
io R
ead
Tec
hnol
ogy
49,1
76.0
0 49
,176
.00
03-1
8 P
urch
ase
of L
ED
Lig
ht F
ixtu
res
18,1
52.0
0 35
,000
.00
16,8
48.0
0 09
-18
Pur
chas
e o
f Tw
o U
tlli
ty T
ruck
Bod
ies
and
Acc
esso
ries
29
,075
.08
30,0
00.0
0 92
4.92
10
-18
Pur
chas
e o
f Uti
lity
Met
ers
and
Acc
esso
ries
27
0.00
20
0,00
0.00
19
9,73
0.00
32
-18
Pur
chas
e o
f Pri
mar
y V
olta
ge C
oppe
r C
able
12
5,00
0.00
12
5,00
0.00
37
-18
Rep
airs
to
the
Ele
ctri
c U
tili
ty S
tora
ge B
uild
ing
and
Pur
chas
e o
f Bui
ldin
g 15
,825
.00
300,
000.
00
284,
175.
00
$ 2,
456,
125.
66
$ 89
5,00
0.00
$
2,60
7.61
$
560,
866.
55
$ 1,
256.
09
$ 84
3,88
8.10
$
843,
888.
10
$ 2,
791,
610.
63
E-7
BOROUGH OF MADISON
ELECTRIC UTILITY FUND SCHEDULE OF CONSUMER ACCOUNTS RECEIVABLE
Ref.
Balance December 31, 201 7 E
Increased by: 2018 Charges *
Decreased by:
Cash Received
Balance December 31, 2018 E
*Net of $1,538,739 utility dividend rate credits.
E-8
$ 947,116.76
21,719,661.56 22,666, 778.32
21,690,249.05
$ 976,529.27
Land and Land Rights
Station Structure and Improvements
Station Equipment
Poles, Towers and Fixtures
Overhead Conductors and Devices
Underground Conduits
Underground Conductors and Devices
Electric Cable and Equipment
Line Transformers
Services
Meters
Street Lighting and Signal System
Office Furniture and Equipment
Plant Structure and Improvements
1961 Chevrolet Ladder Truck
Ford Pick-up
G.M.C. Truck with Pettman Body
G.M.C. Dump Truck
G.M.C. Bucket Truck
Cable Trailer
Line Truck
Pole Trailer
Transformer Trailer
Portable Lift Truck
Transportation Equipment
Shop Equipment
Laboratory Equipment
Tools and Work Equipment
Communication Equipment
General Equipment
Power Operated Lift Mechanism
General Equipment
Miscellaneous Equipment
Bucket Truck, Mailing Equipment and Hole Digger
Kings Road Substation Conversion
Utility Building Repairs
BOROUGH OF MADISON
ELECTRIC UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL
Balance Dec. 31, 2017
$ 48,113.12
2,183,502.21
196,242.41
48,489.60
247,446.57
129,411.16
91,422.26
261,785.71
576,344.16
70,578.16
256,744.65
272,923.39
41,719.56
11,654.57
3,729.50
1,260.36
24,218.02
5,048.60
28,080.29
786.03 24,459.65
918.64
1,114.26
402.00
713.16
3,646.32
417.73
6,127.07
3,577.41
391.00 13,537.51
1,459.82
4,750.73
92,191.00
43,000.00
115,000.00
Removal and Disposal of Underground Storage Tanks
James Park Circuit Breakers
13,949.72
62,400.00
Computerized Utility Billing Equipment 13,567.20
Distribution Lines 425,001.50
Meters and Fixtures 54,729.74
Transformers 50,795.25
Transfonner - James Park 404,530.31
Transfonner Equipment 4,028.51
Line Truck 119,742.53
Circuits - Loantaka and Samson 114,515.48
Additions by
Ordinance
$
Balance
E-9
I of3
Dec. 31, 2018
48,113.12
2, 183,502.21
196,242.41
48,489.60
247,446.57
129,411.16
91,422.26
261,785.71
576,344.16
70,578.16
256,744.65
272,923.39
41,719.56
11,654.57
3,729.50
1,260.36
24,218.02
5,048.60
28,080.29
786.03 24,459.65
918.64
1,114.26
402.00
713.16
3,646.32
417.73
6,127.07
3,577.41
391.00
13,537.51
1,459.82
4,750.73
92,191.00
43,000.00
115,000.00
13,949.72
62,400.00
13,567.20
425,001.50
54,729.74
50,795.25
404,530.31
4,028.51
119,742.53
114,515.48
BOROUGH OF MADISON ELECTRIC UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAP IT AL (Continued)
Underground Line Conduit
Utility Truck James Park Substation Transmission Line Duct Bank Power Cables Diesel Electric Utility Bucket Truck Upgrade Kings Road Substation Pickup Truck Reconditioning Circuit Breakers Rebuilding Distribution System - Noroling Lane Twenty Electronic Sectionalizers
Four Wheel Drive Vehicle Purchase of New Switchgear for Kings Road Purchase of Single Bucket Truck/Pole Trailer
Purchase of Conduit and Cable Purchase of Pickup Truck Purchase ofHazmat Storage Locker
Medium Voltage Feeder Cable Purchase Parts/Labor for Repair of Transformer - James Park Electric Utility Billing System
Installation of Fiber Repair and Replacement of Transformer Vaults and Covers Emergency Repairs to James Park Substation Construction of New Vehicle Storage Building
at Water & Light Plant Relocation ofUnderground Vault, Conduits & Cable
at Prospect St. in Preparation for the Construction of the New Fire & Police Building
Purchase Pickup Truck with a Lift Tail Gate Purchase A New Vehicle for the Electric Meter Reader Asbestos Abatement from Water and Light Plant
Purchase of a New Cable Trailer Purchase Two 20 Yard Lockable Dumpsters Purchase Two Bucket Trucks Purchase of Pad-Mount Transformer and Metering/
Switch Cabinet for the HDM Building Reconstruction Preparation and Painting of the Kings Road and
James Park Substations Purchase of New Style Pennglobe Victorian Fixtures
for the Commercial District Reconstruction of the Underground Electric Distribution
System at the Madison Commons Purchase and Installation of a New Steam Boiler for
the Water & Light Plant on an Emergency Basis
$
Balance Dec. 31, 2017
126,660.09 99,634.00 85,000.00 83,189.00 4,957.62
109,750.22 1,798,767.02
24,953.00 60,000.00 73,863.00
8,975.00 22,075.00
234,900.00 107,760.00 64,152.26 24,490.00 10,891.00
199,497.50 42,820.21 98,421.00
249,266.66 117,450.00 24,802.44
405,752.92
270,914.71
130.00 12,346.00 19,725.00 18,086.00 9,905.70
326,445.94
42,469.75
134,400.00
59,400.00
157,664.97
10,299.00
Additions by Ordinance
$
E-9
2 of3
Balance Dec. 31, 2018
126,660.09
99,634.00 85,000.00 83,189.00 4,957.62
109,750.22 1,798,767.02
24,953.00 60,000.00
73,863.00 8,975.00
22,075.00
234,900.00 107,760.00 64,152.26 24,490.00 10,891.00
199,497.50 42,820.21 98,421.00
249,266.66 117,450.00 24,802.44
405,752.92
270,914.71
130.00 12,346.00
19,725.00 18,086.00 9,905.70
326,445.94
42,469.75
134,400.00
59,400.00
157,664.97
10,299.00
E-9
3 of3 BOROUGH OF MADISON
ELECTRIC UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL
(Continued)
Balance Additions by Balance Dec. 31, 2017 Ordinance Dec. 31, 2018
Excavation and Installation of Underground
Conduit for the New Feeder Circuit to the
Reckson Building at Giralda Farms $ 43,027.50 $ 43,027.50 Purchase of a Covered Trailer and Accessories to be
used for All Underground Distribution Equipment 8,079.89 8,079.89 Purchase and Installation of Two New Tap Changers and
Two Nitrogen Systems on Transformers Banks 1 & 2
at Kings Road Substation 74,896.04 74,896.04 Purchase of Two Hydraulic Lift Tailgates for Pick-up
Trucks 136 & 137 4,990.00 4,990.00 Purchase of New Replacement Single Bucket Truck 133,317.00 133,317.00 Improvements to Lincoln Place 216,600.26 216,600.26 Purchase of New Style Pennglobe Victorian Fixtures 64,285.00 64,285.00 Installation of Fire Alarm System at Water & Light Plant 4,950.00 4,950.00 Emergency Purchase of Materials, Equipment and Services 22,694.58 22,694.58 Energy Conservation Installations in Borough Buildings 40,675.00 40,675.00 Purchase of LED Light Fixtures for the Cook Avenue
Parking Lot 17,344.00 17,344.00 Signal Improvements 35,000.00 35,000.00 Purchase of 4-wheel Drive Utility Vehicle 27,927.96 27,927.96 Purchase of Three-Quarter Ton Pick-Up Truck 30,000.00 30,000.00 Purchase of New Battery Banks at Kings Road and
James Park Substations 17,825.00 17,825.00 Purchase of Two Pad Mount Transformers 14,727.00 14,727.00 Purchase of Materials for Improvements to
Underground Electric Distribution System 248,988.83 248,988.83 Purchase of Digger/Derrick Truck 224,077.68 224,077.68 Purchase of New Pick-up Truck and Related Equipment 39,914.99 39,914.99 Basketball Court Lighting Replacement at Dodge Field 56,571.00 56,571.00 Purchase of Three Historic Lampposts 12,759.00 12,759.00 Pad-Mount Transformer for the E-Well Water
Pumping Station 10,039.00 10,039.00 Submersible Underground Transformers 122,000.00 122,000.00 Signalization Improvements $ 11,734.40 11,734.40 New Historic Lampposts on Kings Road 210,000.00 210,000.00 Purchase of New Security Fence at the Kings Road and
James Park Substations 8,573.00 8,573.00 Replacement of Existing Outdoor Stairway at
Kings Road Substation 7,900.00 7,900.00 Traffic Signal and Call Box Improvements 67,904.50 67,904.50
$ 12,684,971.61 $ 306,111.90 $ 12,991,083.51
Ref. E E
BOROUGH OF MADISON ELECTRIC UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAP IT AL AUTHORIZED AND UNCOMPLETED
Ord. Balance 2018 Transfen-ed to
Improvement Description No. Dec. 31, 20I7 Authorizations Fixed Capital
Purchase and Installation of Desiccant Breather Systems and Oil Filtration Systems 10-13 $ 45,000.00
Repairs to Water and Light Building 43-13 125,000.00
Purchase of Fiber Optic Pilot Wire Relay System Between Kings Road and James Park Substations 15-14 30,000.00
Purchase of Pole Barn for Storage 30-15 120,000.00
Signalization Improvements 37-15 25,000.00 $ 11,734.40
Automated Meter Pilot Program 56-15 35,000.00
New Historic Lampposts on Kings Road 17-16 210,000.00 210,000.00
Purchase of New Security Fence at the Kings Road and James Park Substations 19-16 120,000.00 8,573.00
Replacement of Existing Outdoor Stairway at Kings Road Substation 20-16 30,000.00 7,900.00
Purchase and Installation of Security Cameras at the Kings Road and James Park Substations 21-16 20,000.00
Purchase of Automated Meters and a Handheld Meter
Reading Device 36-16 35,000.00
Purchase of Utility Meters, Handheld Reading Devices
and Accessories 48-16 40,000.00
Traffic Signal and Call Box Improvements 55-16 75,000.00 67,904.50
Purchase of Two Double Bucket Trucks 09-17 440,000.00
Purchase ofa Pad-Mount Transformer for the B-Well Water Pumping Station 19-17 30,000.00
Purchase of Meters with Radio Read Technology 41-17 60,000.00
Purchase of LED Light Fixtures 03-18 $ 35,000.00
Purchase of Two Utility Truck Bodies and Accessories 09-18 30,000.00
Purchase of Utility Meters and Accessories 10-18 200,000.00
Purchase of Primary Voltage Copper Cable 32-18 125,000.00
Repairs to the Electric Utility Storage Building and Purchase of Building 37-18 300,000.00
$ 1,440,000.00 $ 690,000.00 $ 306, 111.90
Ref E
E-10
Authorizations Balance Cancelled Dec. 31, 2018
$ 45,000.00 125,000.00
30,000.00 120,000.00
$ 13,265.60 35,000.00
111,427.00
22,100.00
20,000.00
35,000.00
40,000.00
7,095.50 440,000.00
30,000.00 60,000.00 35,000.00 30,000.00
200,000.00 125,000.00
300,000.00
$ 153,888.10 $ 1,670,000.00
E
BOROUGH OF MADISON ELECTRIC UTILITY OPERATING FUND
SCHEDULE OF 2017 APPROPRIATION RESERVES YEAR ENDED DECEMBER 31, 2018
Operating: Salaries and Wages Other Expenses
Contribution to: Public Employees Retirement System Social Security System
Analysis of Balance December 31, 2017 Ref.
Encumbered E Unencumbered E
Balance Dec. 31, 2017
$ 133,036.02 2,170,597.66
4,638.71 6,072.56
$ 2,314,344.95
$ 744,899.40 1,569,445.55
$ 2,314,344.95
Balance After Modification
$ 133,036.02 2,170,597.66
4,638.71 6,072.56
$ 2,314,344.95
Cash Disbursed Less: Refunds
Paid or Charged
$ 813,279.90
$ 813,279.90
$ 815,979.90 (2,700.00)
$ 813,279.90
E-11
Balance Lapsed
$ 133,036.02 1,357,317.76
4,638.71 6,072.56
$ 1,501,065.05
E-1
2
BO
RO
UG
H O
F M
AD
ISO
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TIL
ITY
CA
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AL
FU
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SC
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OF
IM
PR
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UT
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2018
Aut
hmiz
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ns
Bal
ance
C
apit
al
Bal
ance
Ord
. O
rdin
ance
D
ec.
31,
2017
Im
prov
emen
t P
aid
or
Aut
ho1i
zati
ons
Dec
. 3
1,2
01
8
No.
Im
prov
emen
t D
esc1
ipti
on
Dat
e A
mou
nt
Fun
ded
Fun
d C
harg
ed
Can
cell
ed
Fun
ded
I 0-1
3 P
urch
ase
and
Inst
alla
tion
of
Des
icca
nt B
reat
her
Sys
tem
s an
d O
il F
iltr
atio
n S
yste
ms
04/2
2/13
$
45,0
00.0
0 $
10,6
23.1
0 $
10,6
23.1
0
43-1
3 R
epai
rs t
o W
ater
and
Lig
ht B
uild
ing
0912
3/13
12
5,00
0.00
34
,312
.21
$ 6,
250.
00
28,0
62.2
1
15-1
4 P
urch
ase
of
Fib
er O
ptic
Pil
ot W
ire
Rel
ay S
yste
m
Bet
wee
n K
ings
Roa
d an
d Ja
mes
Par
k S
ubst
atio
ns
05/1
2/14
30
,000
.00
30,0
00.0
0 30
,000
.00
30-1
5 P
urch
ase
of
Pol
e B
arn
for
Sto
rage
04
1271
15
120,
000.
00
120,
000.
00
500.
00
119,
500.
00
37-1
5 S
igna
liza
tion
Im
prov
emen
ts
05/2
7/15
25
,000
.00
13,2
65.6
0 $
13,2
65.6
0
56-1
5 A
utom
ated
Met
er P
ilot
Pro
gram
12
/14/
15
35,0
00.0
0 35
,000
.00
35,0
00.0
0
17-1
6 N
ew H
isto
1ic
Lam
ppos
ts o
n K
ings
Roa
d 04
1251
16
210,
000.
00
16,3
72.2
7 16
,372
.27
19-1
6 P
urch
ase
of
New
Sec
urit
y F
ence
at
the
Kin
gs R
oad
and
Jam
es P
ark
Sub
stat
ions
04
/25/
16
120,
000.
00
111,
427.
00
111,
427.
00
20-1
6 R
epla
cem
ent
of
Exi
stin
g O
utdo
or S
tai1
way
at
Kin
gs R
oad
Sub
stat
ion
0412
5116
30
,000
.00
30,0
00.0
0 7,
900.
00
22,1
00.0
0 21
-16
Pur
chas
e an
d In
stal
lati
on o
f S
ecm
ity
Cam
eras
at
the
Kin
gs R
oad
and
Jam
es P
ark
Sub
stat
ions
04
1251
16
20,0
00.0
0 9,
120
.00
9,12
0.00
36
-16
Pur
chas
e o
f A
utom
ated
Met
ers
and
a H
andh
eld
Met
er
Rea
ding
Dev
ice
04/2
5/16
35
,000
.00
20,1
00.0
0 20
,100
.00
48-1
6 P
urch
ase
of
Uti
lity
Met
ers,
Han
d he
ld R
eadi
ng D
evic
es
and
Acc
esso
1ies
05
/23/
J 6
40,0
00.0
0 6,
346.
00
2,23
6.00
4,
110.
00
55-1
6 T
raff
ic S
igna
l an
d C
all
Box
Im
prov
emen
ts
07/2
5/J
6 75
,000
.00
8,01
5.50
92
0.00
7,
095.
50
9-17
P
urch
ase
of T
wo
Dou
ble
Buc
ket
Trn
cks
03/1
3/J
7 44
0,00
0.00
44
0,00
0.00
41
4,19
0.20
25
,809
.80
19-1
7 P
urch
ase
of
a P
ad-M
ount
Tra
nsfo
nner
for
the
B-W
ell
Wat
er P
umpi
ng S
tati
on
0510
8117
30
,000
.00
22,4
78.0
0 22
,478
.00
41-1
7 P
urch
ase
of
Met
ers
wit
h R
adio
Rea
d T
echn
olog
y I 0
111/
17
60,0
00.0
0 49
,176
.00
49, 1
76.0
0 03
-18
Pur
chas
e o
f L
ED
Lig
ht F
ixtu
res
03/1
2/18
35
,000
.00
$ 35
,000
.00
18, 1
52.0
0 16
,848
.00
09-1
8 P
urch
ase
of T
wo
Utl
ity
Tru
ck B
odie
s an
d A
cces
sori
es
03/1
2/18
30
,000
.00
30,0
00.0
0 29
,075
.08
924.
92
I 0-1
8 P
urch
ase
of
Uti
lity
Met
ers
and
Acc
esso
ries
03
/12/
18
200,
000.
00
200,
000.
00
270.
00
199,
730.
00
32-1
8 P
urch
ase
of
P1im
ary
Vol
tage
Cop
per
Cab
le
0511
8/18
12
5,00
0.00
12
5,00
0.00
12
5,00
0.00
37
-18
Rep
airs
to
the
Ele
ctri
c U
tili
ty S
tora
ge B
uild
ing
and
Pur
chas
e o
f B
uild
ing
0511
8/18
30
0,00
0.00
30
0,00
0.00
15
,825
.00
284,
175.
00
$ 95
6,23
5.68
$
690,
000.
00
$ 56
0,86
6.55
$
153,
888.
10
$ 93
1,48
1.03
Ref
. E
E
E-12
BOROUGH OF MADISON ELECTRIC UTILITY CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
Ref.
Balance December 31, 201 7 E
Increased by: Electric Utility Operating Fund Budget Appropriation $ 595,000.00
Improvement Authorizations Cancelled 153,888.10
Decreased by: Appropriated to Finance Improvement
Authorizations
Balance December 31, 2018 E
E-13
$ 899,257.46
748,888.10
1,648,145.56
690,000.00
$ 958,145.56
E-1
4
BO
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ISO
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OR
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AT
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Tra
nsfe
rred
to
Ord
. D
ate
of
Bal
ance
20
18
Res
erve
for
A
utho
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tion
s B
alan
ce
No.
Im
prov
emen
t D
escr
ipti
on
Ord
inan
ce
Dec
. 31
, 20
17
Aut
hori
zati
ons
Am
orti
zati
on
Can
cell
ed
Dec
. 31
, 20
18
10-1
3 P
urch
ase
and
Inst
alla
tion
of
Des
icca
nt B
reat
her
Sys
tem
s an
d O
il F
iltr
atio
n S
yste
ms
04/2
2/13
$
45,0
00.0
0 $
45,0
00.0
0
43-1
3 R
epai
rs to
Wat
er a
nd L
ight
Bui
ldin
g 09
/23/
13
125,
000.
00
125,
000.
00
15-1
4 P
urch
ase
of
Fib
er O
ptic
Pil
ot W
ire
Rel
ay S
yste
m
Bet
wee
n K
ings
Roa
d an
d Ja
mes
Par
k S
ubst
atio
ns
05/1
2114
30
,000
.00
30,0
00.0
0
29-1
5 P
urch
ase
of N
ew P
ick-
up T
ruck
and
Rel
ated
Equ
ipm
ent
04/2
7115
30
-15
Pur
chas
e o
f Pol
e B
arn
for
Sto
rage
04
/27/
15
120,
000.
00
120,
000.
00
37-1
5 S
igna
liza
tion
Im
prov
emen
ts
05/2
7/15
25
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.00
$ 11
,734
.40
$ 13
,265
.60
56-1
5 A
utom
ated
Met
er P
ilot
Pro
gram
12
/14/
15
35,0
00.0
0 35
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.00
17-1
6 N
ew H
isto
ric
Lam
ppos
ts o
n K
ings
Roa
d 04
/25/
16
210,
000.
00
210,
000.
00
19-1
6 P
urch
ase
of
New
Sec
urit
y F
ence
at
the
Kin
gs R
oad
and
Jam
es P
ark
Sub
stat
ions
04
/25/
16
120,
000.
00
8,57
3.00
11
1,42
7.00
20-1
6 R
epla
cem
ent o
f Exi
stin
g O
utdo
or S
tair
way
at
Kin
gs R
oad
Sub
stat
ion
04/2
5/16
30
,000
.00
7,90
0.00
22
,100
.00
21-1
6 P
urch
ase
and
Inst
alla
tion
of
Sec
urit
y C
amer
as a
t the
K
ings
Roa
d an
d Ja
mes
Par
k S
ubst
atio
ns
0412
5116
20
,000
.00
20,0
00.0
0 36
-16
Pur
chas
e o
f Aut
omat
ed M
eter
s an
d a
Han
dhel
d M
eter
R
eadi
ng D
evic
e 04
1251
16
35,0
00.0
0 35
,000
.00
48-1
6 P
urch
ase
of
Uti
lity
Met
ers,
Han
dhel
d R
eadi
ng D
evic
es
and
Acc
esso
ries
05
1231
16
40,0
00.0
0 40
,000
.00
55-1
6 T
raff
ic S
igna
l an
d C
all
Box
Im
prov
emen
ts
07/2
5/16
75
,000
.00
67,9
04.5
0 7,
095.
50
9-17
P
urch
ase
of T
wo
Dou
ble
Buc
ket T
ruck
s 03
/13/
17
440,
000.
00
440,
000.
00
19-1
7 P
urch
ase
of a
Pad
-Mou
nt T
rans
form
er f
or t
he B
-Wel
l
Wat
er P
umpi
ng S
tati
on
05/0
8/17
30
,000
.00
30,0
00.0
0 41
-17
Pur
chas
e o
f M
eter
s w
ith R
adio
Rea
d T
echn
olog
y 10
/11/
17
60,0
00.0
0 60
,000
.00
03-1
8 P
urch
ase
of
LE
D L
ight
Fix
ture
s 03
/12/
18
$ 35
,000
.00
35,0
00.0
0 09
-18
Pur
chas
e o
f Tw
o U
tili
ty T
ruck
Bod
ies
and
Acc
esso
ries
03
/12/
18
30,0
00.0
0 30
,000
.00
10-1
8 P
urch
ase
of
Uti
lity
Met
ers
and
Acc
esso
ries
03
112/
18
200,
000.
00
200,
000.
00
32-1
8 P
urch
ase
of
Pri
mar
y V
olta
ge C
oppe
r C
able
05
/18/
18
125,
000.
00
125,
000.
00
37-1
8 R
epai
rs to
the
Ele
ctri
c U
tili
ty S
tora
ge B
uild
ing
and
Pur
chas
e o
f B
uild
ing
05/1
8/18
30
0,00
0.00
30
0,00
0.00
$ 1,
440,
000.
00
$ 69
0,00
0.00
$
306,
111.
90
$ 15~,888.10
$ 1,
670,
000.
00
Ref
. E
E
E-14
BOROUGH OF MADISON
PART II
SINGLE AUDIT
YEAR ENDED DECEMBER 31, 2018
Sch
edul
e A
BO
RO
UG
H O
F M
AD
ISO
N
SC
HE
DU
LE
OF
EX
PE
ND
ITU
RE
S O
F F
ED
ER
AL
AW
AR
DS
YE
AR
EN
DE
D D
EC
EM
BE
R 3
1, 2
018
Tot
al
Nam
e o
f F
eder
al
Pas
s T
hrou
gh
C.F
.D.A
. G
rant
Per
iod
Gra
nt
Am
ount
A
mou
nt o
f C
umul
ativ
e P
rovi
ded
to
Age
ncy
or D
epar
tmen
t N
ame
of P
rogr
am/
Sta
te A
cco
un
t#
Ent
ity
ID
Num
ber
Fro
m
To
Aw
ard
Rec
eive
d E
xpen
ditu
res
Exp
endi
ture
s S
ubre
cipi
ents
U.S
. D
e[>a
rtm
ent
ofT
rans
12or
tati
on
(Pas
sed
thro
ugh
New
Jer
sey
Tra
nspo
rtat
ion
Tru
st F
und
Aut
hori
ty A
ct:
Dep
artm
ent
of
Tra
nspo
rtat
ion)
M
unic
ipal
Sta
te A
id:
480-
078-
6320
-20
.205
Pro
spec
t S
tree
t R
econ
stru
ctio
n A
MF
-609
166
01/0
1/16
12
/311
17
$ 17
2,50
0.00
$
43,1
25.0
0 $
172,
500.
00
Gre
enw
ood
Ave
nue
AM
Q-6
0517
7 01
/011
17
12/3
1/18
24
5,00
0.00
18
3,75
0.00
$
245,
000.
00
245,
000.
00
226,
875.
00
245,
000.
00
417,
500.
00
Nat
iona
l P
rior
ity
Saf
ety
Pro
gram
:
Dri
ve S
ober
or
Get
Pul
led
Ove
r:
066-
1 16
0-1
00-
2016
15
7-03
1020
20
.616
1/
1/20
16
12/3
1/18
5,
000.
00
550.
00
4,48
5.00
Tot
al U
.S.
Dep
artm
ent
of T
rans
port
atio
n 22
6,87
5.00
24
5,55
0.00
42
1,98
5.00
u.s
Dq;
iart
men
t o
f H
ousi
ng a
nd U
rban
Dev
eloQ
men
t:
(Pas
sed
thro
ugh
Mor
ris
Cou
nty)
C
omm
unit
y D
evel
opm
ent
Blo
ck G
rant
:
Pla
in S
tree
t Im
prov
emen
ts
NIA
14
.218
01
/01/
17
12/3
1/18
80
,000
.00
61, 1
50.0
0 80
,000
.00
80,0
00.0
0
Tot
al U
.S.
Dep
artm
ent
of H
ousi
ng a
nd U
rban
Dev
elop
men
t 61
, 150
.00
80,0
00.0
0 80
,000
.00
U.S
. D
eQar
tmen
t o
f Jus
tice
:
(Pas
sed
thro
ugh
New
Jer
sey
Dep
t E
dwar
d B
yrne
Mem
oria
l Ju
stic
e A
ssis
tanc
e I 0
0-06
6-10
20
of
Law
and
Pub
lic
Saf
ety)
G
rant
Pro
gram
36
4-09
1240
16
.738
01
/01/
17
12/3
1/18
15
,000
.00
15,0
00.0
0 15
,000
.00
15,0
00.0
0
Tot
al U
.S.
Dep
artm
ent
of.J
usti
ce
15,0
00.0
0 15
,000
.00
15,0
00.0
0
U.S
. D
q;ia
rtrn
ent
of
Hom
elan
d S
ecur
ity
(Pas
sed
thro
ugh
N.J
. D
epar
tmen
t o
f D
isas
ter
Gra
nts
-P
ubli
c A
ssis
tanc
e -
FEM
A:
I 00-
066-
1200
-L
aw a
nd P
ubli
c S
afet
y)
Sup
erst
orm
San
dy
A92
-068
280
97.0
36
10/2
6/12
12
/31/
13
1, 1
30, 1
68.2
7 9,
160
.87
9, 1
60.8
7 *
1, 1
30, 1
68.2
7
Tot
al U
.S.
Dep
artm
ent
of
Hom
elan
d S
ecur
ity
9, 1
60.8
7 9,
160
.87
1, 1
30, 1
68.2
7
Tot
al F
eder
al A
war
ds
$ 31
2,18
5.87
$
349,
710.
87
$1,6
47,1
53.2
7 $
-0-
* -P
rior
yea
r ex
pend
itur
es
SE
E A
CC
OM
PA
NY
ING
NO
TE
S T
O S
CH
ED
UL
ES
OF
EX
PE
ND
ITU
RE
S O
F F
ED
ER
AL
AN
D S
TA
TE
A W
AR
DS
1
Sch
edul
e B
1 o
f2
BO
RO
UG
H O
F M
AD
ISO
N
SC
HE
DU
LE
OF
EX
PE
ND
ITU
RE
S O
F S
T A
TE
AW
AR
DS
YE
AR
EN
DE
D D
EC
EM
BE
R 3
1, 2
018
Tot
al
Nam
e o
f S
tate
Age
ncy
Sta
te
Gra
nt P
erio
d G
rant
A
mou
nt
Am
ount
of
Cum
ulat
ive
or D
epar
tmen
t A
ccou
nt N
umbe
r F
rom
T
o A
war
d R
ecei
ved
Exp
endi
ture
s E
xpen
ditu
res
De1
2artm
ent
of
Env
iron
men
tal
Pro
tect
ion:
Cle
an C
omm
unit
ies
Act
:
2015
76
5-04
2-49
00-
01/0
1/15
12
/31/
18
$ 29
,915
.51
$ 1,
484.
67
$ 29
,915
.51
2016
00
4-17
8910
01
/01/
16
12/3
1/18
34
,202
.81
34,2
02.8
1 34
,202
.81
2017
01
/01/
17
12/3
1/19
29
,057
.43
12,7
17.2
8 12
,717
.28
2018
01
/01/
18
12/3
1/19
27
,796
.41
$ 27
,796
.41
27,7
96.4
1 48
,404
.76
76,8
35.6
0
Rec
ycli
ng T
onna
ge G
rant
: 10
0-04
2-49
10-
2018
22
4-23
8490
01
/01/
18
12/3
1 /1
9 20
,977
.90
12,7
50.0
0 12
,750
.00
Tot
al D
epar
tmen
t o
f E
nvir
onm
enta
l P
rote
ctio
n 27
,796
.41
61,1
54.7
6 89
,585
.60
Dep
artm
ent
of
Law
and
Pub
lic
Safe
ty:
Bod
y A
nnor
Gra
nt:
066-
1020
-718
-20
15
001-
0901
60
1/1/
2015
12
/31/
19
2,85
7.44
2,
531.
10
2,53
1.10
Tot
al D
epar
tmen
t o
f L
aw a
nd P
ubli
c S
afet
y 2,
531.
10
2,53
1.10
Dep
artm
ent
of t
he T
reas
ury:
(Pas
sed
thro
ugh
Cou
nty
of
Mor
ris)
Gov
erno
r's C
ounc
il o
n A
lcoh
olis
m &
Dru
g A
buse
-
Mun
icip
al A
llia
nce
Prog
ram
(M
.A.A
.S.A
.):
2018
N
IA
0710
1117
06
/30/
18
12,4
19.0
0 11
,358
.93
11,3
58.9
3
Tot
al D
epar
tmen
t o
f the
Tre
asur
y 11
,358
.93
11,3
58.9
3 2
Nam
e o
f Sta
te A
genc
y
or D
epar
tmen
t
Dep
artm
ent o
f Hea
lth
and
Sen
ior
Ser
vice
s:
Alc
ohol
Edu
cati
on a
nd R
ehab
ilit
atio
n F
und:
2007
2008
2009
2012
Tot
al D
epar
tmen
t of H
ealt
h an
d S
enio
r S
ervi
ces
* -P
rior
yea
r ex
pend
itur
es
Tot
al S
tate
Aw
ards
NIA
-N
ot A
vail
able
BO
RO
UG
H O
F M
AD
ISO
N
SC
HE
DU
LE
OF
EX
PE
ND
ITU
RE
S O
F S
T A
TE
AW
AR
DS
YE
AR
EN
DE
D D
EC
EM
BE
R 3
1, 2
018
Sta
te
Acc
ount
Num
ber
098-
9735
-760
-
001-
0901
60
Gra
nt P
erio
d
Fro
m
To
01/0
1/07
12
/31/
18
01/0
1/08
12
/31/
18
01/0
1/09
12
/31/
18
01/0
1/12
12
/31/
19
$
Gra
nt
Aw
ard
3,27
0.07
2,99
8.55
1,11
3.83
1,24
1.15
$
Am
ount
Rec
eive
d
27,7
96.4
1
SE
E A
CC
OM
PA
NY
ING
NO
TE
S T
O E
XP
EN
DIT
UR
ES
OF
FE
DE
RA
L A
ND
ST
AT
E A
W A
RD
S
$ $
Am
ount
of
Exp
endi
ture
s
934.
20
2,09
8.55
872.
82
594.
43
4,50
0.00
79,5
44.7
9
$ $
Sch
edul
eB
2 o
f2
Tot
al
Cum
ulat
ive
Exp
endi
ture
s
3,27
0.07
2,99
8.55
1,11
3.83
594.
43
7,97
6.88
111,
452.
51 3
BOROUGH OF MADISON NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AND ST ATE AW ARDS
YEAR ENDED DECEMBER 31, 2018
Note 1. BASIS OF PRESENTATION
The accompanying schedules of expenditures of federal and state awards (the "Schedules") include the federal and state grant activity of the Borough of Madison under programs of the federal and state governments for the year ended December 31, 2018. The information in these schedules is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance") and New Jersey's OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Because the schedules present only a selected portion of the operations of the Borough, they are not intended to and do not present the financial position, changes in fund balance or cash flows of the Borough.
Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the accompanying schedules of expenditures of federal and state awards are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Passthrough identifying numbers are presented where available. The Borough has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Note 3. RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS
Amounts reported in the accompanying schedules agree with the amounts reported in the related federal and state financial reports.
Note 4. N.J. ENVIRONMENT AL INFRASTRUCTURE LOANS PAY ABLE
At December 31, 2018, the Borough has $686,770.34 and $1,333,489.64 of N.J. Environmental Infrastructure Trust and Fund Loans Payable outstanding which are recorded in the General Capital Fund.
The loan agreements were obtained to finance a portion of the cost of improvements to the MadisonChatham Joint Meeting's Molitor Water Pollution Control Facility. Even though the Borough is responsible for the repayment of the loans, the Borough does not receive or expend any of the loan funds. The Madison-Chatham Joint Meeting is responsible for the draw downs and expenditures of loan funds.
At December 31, 2018, the Madison-Chatham Joint Meeting has received and expended all of the $2,677,906 Loan funds for the improvements to the Madison-Chatham Joint Meeting's Molitor Water Pollution Control Facility partially funded the Loan funds. The project which relates to the loans was completed in 2017.
4
N I s I v 0 c c I A LLP Ceriified Public Accountants & Advisors
Mount Arlingion Corporate Center 200 Valley Road, Suite 300
Mi. Arlington, N,J 07856 973-298-8500 I 973-298-8501 Fax
Lavvrence Business Center 11 Lawrence Road Ne"ton. N.J 07860
973-383-6699 [ 973-383-6555 Fax
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
The Honorable Mayor and Members of the Borough Council
Borough of Madison Madison, New Jersey
Independent Auditors' Report
We have audited, in accordance with auditing standards generally accepted in the United States of America, audit requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the "Division"), and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements - regulatory basis - of the various funds of the Borough of Madison, in the County of Morris (the "Borough") as of and for the years ended December 31, 2018 and 201 7, and the related notes to the financial statements and have issued our report thereon dated May 22, 2019. These financial statements have been prepared in accordance with accounting practices prescribed or permitted by the Division to demonstrate compliance with the Division's regulatory basis of accounting, and the budget laws of New Jersey, which is a basis of accounting other than accounting principles generally accepted in the United States of America.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Borough's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Borough's internal control. Accordingly, we do not express an opinion on the effectiveness of the Borough's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Borough's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of the internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify a certain deficiency in internal control, described in the accompanying Schedule of Findings and Questioned Costs as Finding 2018-01, that we consider to be a significant deficiency.
1/vvJvv. n i slvocci a, cor~1 Independent Member of BKR intern(_~tiein;:1l
5
The Honorable Mayor and Members of the Borough Council
Borough of Madison Page2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Borough's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
The Borough's Response to the Finding
The Borough's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Responses. The Borough's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Borough's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Borough's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
May 22, 2019 Mount Arlington, New Jersey NISIVOCCIA LLP
Valerie A. Dolan Certified Public Accountant Registered Municipal Accountant No. 548
6
Summary of Auditors' Results:
BOROUGH OF MADISON SCHEDULE OF FINDINGS AND RESPONSES
YEAR ENDED DECEMBER 31, 2018
The Independent Auditors' Report expresses an unmodified opinion on the financial statements prepared in accordance with accounting practices prescribed or permitted by the Division of Local Government Services, Department of Community Affairs, State of New Jersey to demonstrate compliance with the Division's regulatory basis of accounting and the budget laws of New Jersey.
A significant deficiency was disclosed during the audit of the financial statements as reported in the Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. No material weaknesses are reported.
No instances of noncompliance material to the financial statements of the Borough which would be required to be reported in accordance with Government Auditing Standards, were disclosed during the audit.
The Borough was not subject to the single audit provisions of the Uniform Guidance and New Jersey OMB's Circular 15-08 for the year ended December 31, 2018 as both state and federal grant expenditures were less than the single audit thresholds of $750,000 identified in the Uniform Guidance and NJOMB 15-08.
Findings Relating to the Financial Statements which are required to be Reported in Accordance with Generally Accepted Government Auditing Standards:
The audit disclosed the following significant deficiency required to be reported under Generally Accepted Government Auditing Standards:
Finding 2018-01 (Repeat Finding 2017-01): Segregation of Duties
Criteria:
Concentration of duties and responsibilities in a limited number of individuals is not desirable from a control point of view.
Condition:
The various departments/offices of the Borough are responsible for the issuance of permits and licenses; collection of taxes, utility charges and permits and license fees; and recording of collections. The reconciliation of certain bank accounts and the preparation of the general ledger for the various funds are performed by one individual.
Cause:
This is due, in part, to the limited number of personnel of the Borough and the decentralized nature of governmental collection procedures.
Effect or Potential Effect:
Segregation of duties refers to separating those functions that place too much control over a transaction or class of transactions that would enable a person to perpetuate errors and prevent detection within a reasonable period of time.
7
BOROUGH OF MADISON SCHEDULE OF FINDINGS AND RESPONSES
YEAR ENDED DECEMBER 31, 2018
Findings Relating to the Financial Statements which are required to be Reported in Accordance with Generally Accepted Government Auditing Standards: (Cont'd)
Finding 2018-01 (Repeat Finding 2017-01): Segregation of Duties (Cont'd)
Recommendation:
It is recommended that an adequate segregation of duties be maintained with respect to the recording and treasury functions.
Management's Response:
The Borough is aware that there is a lack of adequate segregation of duties. However, due to budgetary constraints there are not sufficient resources to completely resolve the finding at this time.
Findings and Questioned Costs for Federal Awards:
Not Applicable - Federal grant expenditures were below the single audit threshold.
Findings and Questioned Costs for State Awards:
Not Applicable - State grant expenditures were below the single audit threshold.
8
Status of Prior Year Findings:
BOROUGH OF MADISON SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED DECEMBER 31, 2018
The prior year finding 2017-01 regarding the segregation of duties was not resolved. Due to budgetary constraints there are not sufficient resources to completely resolve the finding at this time
9
BOROUGH OF MADISON
PART III
COMMENTS AND RECOMMENDATIONS
YEAR ENDED DECEMBER 31, 2018
BOROUGH OF MADISON COMMENTS AND RECOMMENDATIONS
Contracts and Agreements Required to be Advertised for N .J. S .A. 40A: 11-4
N.J.S.A. 40A: 11-3 states:
a. " When the cost or price of any contract awarded by the contracting agent in the aggregate does not exceed in a contract year the total sum of $17,500, the contract may be awarded by a purchasing agent when so authorized by ordinance or resolution, as appropriate to the contracting unit, of the governing body of the contracting unit without public advertising for bids, except that the governing body of any contracting unit may adopt an ordinance or resolution to set a lower threshold for the receipt of public bids or the solicitation of competitive quotations. If the purchasing agent is qualified pursuant to Subsection b. of Section 9 of P.L. 1971, C.198 (N.J.S.A. 40A:ll-9), the governing body of the contracting unit may establish that the bid threshold may be up to $25,000. Such authorization may be granted for each contract or by a general delegation of the power to negotiate and award such contracts pursuant to this section.
b. Any contract made pursuant to this section may be awarded for a period of 24 consecutive months, except that contracts for professional services pursuant to subparagraph (i) of paragraph (a) of subsection ( 1) of section 5 of P .L. 1971, C.198 (N.J.S.A. 40A:ll-5) may be awarded for a period not exceeding 12 consecutive months. The Division of Local Government Services shall adopt and promulgate rules and regulations concerning the methods of accounting for all contracts that do not coincide with the contracting unit's fiscal year.
c. The Governor, in consultation with the Department of the Treasury, shall, no later than March 1 of every fifth year beginning in the fifth year after the year in which P.L. 1999, C.440 takes effect, adjust the threshold amount and the higher threshold amount which the governing body is permitted to establish, as set forth in subsection a. of this section, or the threshold amount resulting from any adjustment under this subsection, in direct proportion to the rise or fall of the index rate as that term is defined in section 2 of P.L. 1971, C.198 (N.J.S.A. 40A:ll-2), and shall round the adjustment to the nearest $1,000. The Governor shall, no later than June 1 of every fifth year, notify each governing body of the adjustment. The adjustment shall become effective on July 1 of the year in which it is made."
N.J.S.A. 40A: 11-4 states: "Every contract awarded by the contracting agent for the provision or performance of any goods or services, the cost of which in the aggregate exceeds the bid threshold, shall be awarded only by resolution of the governing body of the contracting unit to the lowest responsible bidder after public advertising for bids and bidding therefore, except as is provided otherwise in this act or specifically by any other law. The governing body of a contracting unit may, by resolution approved by a majority of the governing body and subject to subsections b. and c. of this section, disqualify a bidder who would otherwise be determined to be the lowest responsible bidder, if the governing body finds that it has had prior negative experience with the bidder."
Effective July 1, 2015 and thereafter, the bid thresholds in accordance with N.J.S.A. 40A:ll-3 and 40A:ll-4 (as amended) are $17,500 for a contracting unit without a qualified purchasing agent and $40,000 for a contracting unit with a qualified purchasing agent.
The governing body of the municipality has the responsibility of determining whether the expenditures in any category will exceed the bid threshold within the fiscal year. Where question arises as to whether any contract or agreement might result in violation of the statute, the Borough Counsel's opinion should be sought before a commitment is made.
The minutes indicated that bids were requested by public advertising per N.J.S.A. 40A:ll-4. The minutes also indicated that resolutions were adopted and advertised authorizing the awarding of contracts or agreements for "Professional Services" and "Extraordinary Unspecifiable Services" per N.J.S.A. 40A: 11-5.
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BOROUGH OF MADISON COMMENTS AND RECOMMENDATIONS
(Continued)
Contracts and Agreements Required to be Advertised for N.J.S.A. 40A: 11-4 (Cont'd)
Inasmuch as the system of records did not provide for an accumulation of payments for categories for the performance of any work or the furnishing or hiring of any materials or supplies, the results of such an accumulation could not reasonably be ascertained. Disbursements were reviewed, however, to determine whether any clear-cut violations existed. None were noted.
Collection of Interest on Delinquent Taxes, Assessments and Utility Charges
The statute provides the method for authorizing interest and the maximum rates to be charged for the nonpayment of taxes on or before the date when they would become delinquent. On January 3, 2018, the governing body adopted a resolution authorizing interest to be charged at the rate of 8% per annum on the first $1,500 of delinquent taxes and 18% per annum for delinquent taxes in excess of $1,500, and allows an additional penalty of 6% be collected against a delinquency in excess of $10,000 on properties that fail to pay the delinquency prior to the end of the calendar year.
On December 10, 2007, the governing body adopted an ordinance authorizing interest to be charged at the rate of 8% per annum on the first $1,500 of delinquent utility charges and 18% per annum for delinquent utility charges in excess of $1,500. It allows for a grace period of 30 days for payment of the utilities bills.
It appears from an examination of the Tax Collector's and Utility Collector's records that interest was generally collected in accordance with the foregoing resolution and ordinance.
Delinquent Taxes and Tax Title Liens
The last tax sale was held on September 27, 2018, and included all eligible properties.
The following comparison is made of the number of tax title liens receivable on December 31, of the last three years:
Year
2018 2017 2016
Number of Liens
4 3 3
It is essential to good management that all means provided by statute be utilized to liquidate tax title liens in order to get such properties back on a taxpaying basis.
Verification of Delinquent Taxes and Other Charges
A test of verification of delinquent charges and current payments was made in accordance with the regulations of the Division of Local Government Services, consisting of verification notices as follows:
Type
Payments of 2018 Taxes Payments of 2019 Taxes Delinquent Taxes Payments of Water Utility Charges Delinquent Water Utility Charges Payments of Electric Utility Charges Delinquent Electric Utility Charges
Number Mailed
20 20 15 20 15 20 15
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Municipal Court
BOROUGH OF MADISON COMMENTS AND RECOMMENDATIONS
(Continued)
The Madison Municipal Joint Court includes the Borough of Madison, the Borough of Chatham, the Township of Chatham, the Township of Harding and the Township of Morris. The transactions for the year 2018 for the Madison Municipal Joint Court were as follows:
RECEIPTS AND DISBURSEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018
Balance Balance Dec. 31, 2017 Receipts Disbursements Dec. 31, 2018
Municipal Treasurer: Fines and Fees $ 39,804.04 $ 593,686.44 $ 589,638.70 $ 43,851.78 Restitution 170.00 4,402.29 4,572.29 POAAFTA 166.00 3,104.00 2,964.00 306.00 Public Defender 550.00 9,163.00 9,428.50 284.50
County: Fines 16,446.50 231,018.01 231,373.51 16,091.00
State: Fines and Costs 37,001.96 556,531.09 555,729.33 37,803.72
Conditional Discharge/Dismissal 238.00 5,232.00 4,930.00 540.00 Weights and Measures 9,150.00 106,300.00 100,700.00 14,750.00 Fish and Game 210.00 210.00 Local Park Commission 50.00 75.00 125.00 Interest 65.14 1,376.49 1,289.13 152.50 Bail 5,779.01 56,714.48 58,160.62 4,332.87
$ 109,420.65 $1,567,812.80 $1,559,121.08 $ 118,112.37
General Capital Fund
One ordinance, which is more than five years old, has a deficit cash balance at December 31, 2018. This situation arises when expenditures are made from an ordinance without the respective debt being issued. Management is aware of this situation. This ordinance is expected to be funded by bonds or raised in a succeeding year's budget. No formal recommendation is judged to be necessary.
Financial Reporting
During our review of the Borough financial records, we noted that the analysis of balance for the payroll agency account as of December 31, 2018 has several deficit balances. It is recommended that the various balances in the payroll agency account be reviewed and monitored on a regular basis and any appropriate adjustments be made.
Management's Response
The analysis of balance for the payroll agency account will be reviewed and monitored on a regular basis and adjustments be made as necessary.
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Management Suggestions
Other Trust Funds
BOROUGH OF MADISON COMMENTS AND RECOMMENDATIONS
(Continued)
Upon review of the Borough's budget rider report, it was noted that the Borough does not have a dedication-by-rider for all the reserves in the Other Trust Funds. It is suggested that the Borough submit application to the State to seek approval for the dedication-by-riders for all applicable Trust Fund reserves from the State of New Jersey according to N.J .S.A.40A:4-39.
Federal and State Grant Balances
As of December 31, 2018, there were various appropriated reserve balances in the Federal and State Grant Fund which have been on the Borough's records for several years. The Borough passed a resolution in July 2018 to cancel several older balances. It is suggested that the Borough continues to review these older grant reserve balances.
Status of Prior Year Recommendations
The recommendations regarding segregation of duties and the analysis of payroll agency balance have not been resolved.
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It is recommended that:
BOROUGH OF MADISON SUMMARY OF RECOMMENDATIONS
1. An adequate segregation of duties be maintained with respect to the recording and treasury functions.
2. Various balances in the payroll agency account be reviewed and monitored on a regular basis and any appropriate adjustments be made.
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