Executive Municipal Budget Overview Presentation

Executive Municipal Budget Overview Presentation

Jill ian Barrick, Business Administrator

Town Council Meeting | May 25, 2021

FY 2021

FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWNFY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN

● 1.8 cent increase in Municipal Tax Rate

● $5.42 monthly increase to average residential home of

$355,808

● Net Assessed Valuation –$2,296,392,450

● $559,804 under the 2% Property Tax Levy CAP

● One Cent of the Municipal Tax Rate =$229,639

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Budget Summary Points

FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN

Property Tax Rates

FY2020 FY2021 * Difference

Municipal $1.025 $1.043 $0.018

School District* $1.458 $1.446 -$0.013

County* $0.344 $0.332 -$0.012

Library $0.045 $0.043 -$0.002

TOTAL $2.883 $2.871 -$0.011

* FY 2021 Estimated Tax Rates

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FY 2021 Property Tax Rates Breakdown

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$0.36 of Each Total Tax Dollar

Funds Municipal Government

Municipal36.3%

School District50.3%

County11.8%

Library1.5%


Tax Bill Comparison(per $100k of assessed value)

FY 2021 Total Property Tax $ EffectDecrease of -$2.88/quarter or -$11.53/year

FY2020 FY2021 Difference

Municipal Tax $1,025 $1,043 $18.27

Morris School District Tax* $1,458 $1,446 ($12.42)

Morris County Tax* $355 $340 ($15.12)

Public Library Tax $45 $43 ($2.26)

Total Tax Bill Amount $2,883 $2,871 ($11.53)

* FY 2021 Estimated Tax Amounts

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Tax BaseFY 2021 Town Net Assessed Valuation: $2,296,392,450

$29 million increase as compared to 2020 ratables

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2020 2021 Difference

Vacant Land $17,756,200 $26,285,000 $8,528,800

Residential $1,284,274,800 $1,289,671,900 $5,397,100

Commercial $707,233,200 $718,131,450 $10,898,250

Industrial $7,430,100 $7,430,100 $0

Apartment $250,710,500 $254,874,000 $4,163,500

Total Assessed Value $2,267,404,800 $2,296,392,450 $28,987,650


Equalization Rate

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76.02%

80.24%

85.29%86.02% 85.53%

80.12%

78.32%

72.42%

75.39%74.03%

77.00%

65.00%

70.00%

75.00%

80.00%

85.00%

90.00%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Equalization Rate


Financial Summary Totals

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FY2020 FY2021

Operating Fund

Municipal Budget $41,847,256 $42,884,114

Grants 573,853 855,822

Operating Fund Total 42,421,109 43,739,936

Percent Change 3.1%

Sewer Utility Fund

Sewer Utility Budget 7,808,746 7,235,258

Capital Improvements Plan 311,000 250,000

Sewer Utility Fund Total 8,119,746 7,485,258

Percent Change -7.81%

Total Financial Budgets $50,540,855 $51,225,194

Percent Change 1.4%


2% Property Tax Levy CAP

• Projected Total Revenues - $43,739,936

• Maximum Allowable Municipal Tax Levy Amount -$24,517,272

• FY 2021 Municipal Tax Levy Revenue -$23,957,467

• $559,805 Under Tax Levy Cap Limit

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FY 2021 Anticipated Revenues (%)“Where The Budget $$ Comes From”

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Municipal Tax Levy57.0%

Surplus Anticipated10.1%

Special Items7.0%

Sewer Utility Surplus8.7%

State Aid6.6%Local Revenues

4.9%Receipts from Delinquent Taxes

1.6%

UCC2.3%State & Federal Grants

2.0%


COVID-Sensitive Revenues

1 1

2019 Actual

2020Actual

2021Proposed

3-Year Average

FINES & COSTS - Municipal Court 1,072,632 566,551 786,000 886,979

LICENSES - Clerk/Health/Marriage 135,621 100,052 120,000 123,498

Swimming Pool 113,783 64,183 98,000 98,538

Sewer Utility User Fees 7,600,873 6,818,035 7,141,258 7,348,285

Hotel/Motel Tax 606,539 235,782 180,000 496,920


General Revenues

Revenue Increases FY2020 vs FY2021 Budget (projected)

• Uniform Construction Code fees $392,000

• Receipts from Delinquent Taxes $125,000

Swimming Pool Fees $98,000

• PILOT - 45 Market (Vertical) $70,000

• Municipal Court $36,000

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“State Aid” aka Energy Tax Receipts and CMPTRA

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$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021

Actual Amount Received State Aid Formula

Cumulatively, the

State has shorted the

Town $19.7 million

since 2001

Full funding of

Energy Tax

Receipts/CMPTRA

equals $0.10 cents or

$340 to the average

homeowner


Use of Surplus/Fund Balance

• The town typically budgets for between $2.0 and $3.0 million in Surplus annually

• Surplus is generated by lapsed appropriations and unanticipated revenue

• Use of Surplus should be targeted to one-time expenses

• Surplus Policy resolution adopted in 2018.

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Source & Use Amount

Revenue Source

Fund Balance Anticipated (Surplus) $4,400,000

Total $4,400,000

Proposed Appropriation Use

Reserve for Tax Appeals 400,000

Capital Improvements 150,000

Reserve for Sick and Vacation Accumulation 200,000

Reserve for Uncollected Taxes 811,065

Municipal Operations - Property Tax Relief 1,730,890

COVID 19- Loss of Revenue (projected) $1,108,045

Total $4,400,000


Fund Balance Trend

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$4,362,291

$14,920,374 $14,790,342 $14,647,500

$13,636,594 $14,018,004

$12,431,435

$11,031,435

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

FY 2014 FY 2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021PROPOSED

Fund Bal. December 31st Proposed Fund Balance Target Fund Balance Target

FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN 16

FY 2021 Proposed Appropriations (%)“How The Budget Revenues Are Allocated”

Capital Improvements150,000

0.3%

Shared Service Agreements

796,1861 .8%

Reserve for Uncollected Taxes

811 ,0651 .9%

Other4,068,834

9.3%

Debt Services3,171 ,900

7.3%

Pension4,748,310

10.9%

General Government

5,390,38412.3%

Insurance7,031 ,031

16.1%

Public Works6,846,080

15.7%

Public Safety10,726,145

24.5%


General AppropriationsDepartmental Operations - $24,690,670

• Up 4%, or $837,241.

• Salary & Wages - $18,689,814 (43% of Total Appropriations)

• Up +4%, or $ 701,737

• 192 Full-Time Employees

184 Current fund, 8 Sewer Utility

• Other Expenses - $ 6,000,856 (14% of Total Appropriations)

• Up 2%, or $135,503

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What Changed? – Largest Increases

OPERATING BUDGET FY2021 Increase*

PFRS Pension 380,144

Medical and Dental Insurance 265,161

Reserve for Vacation and Sick Pay 200,000

Police Salary and Wages 177,872

Recycling and Sanitation Services 160,606

TOTAL CHANGE 1,183,783

*compared to FY2020 Budget

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What Changed? – Largest Decreases

OPERATING BUDGET FY2021 Decrease*

Interest on Bonds -294,690

Tax Assessor –Other Expenses -200,000

Reserve for Tax Appeals -100,000

Capital Improvement Fund -75,000

Zoning - Salary and Wages -55,878

TOTAL CHANGE -725,568

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*compared to FY2020 Budget


Pension Costs

FY 2021 Pension Cost - $ 3,998,674

FY 2021 Pension Obligations

• PFRS - $380,144 Increase, Up 14.4% from 2020

• PERS - $88,094 Increase, Up 9.8% from 2020

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Rates Per NJ Pension Website https://www.nj.gov/treasury/pensions/2021-employer-billing.shtml

Local Employer contribution rate changes:

• PERS – 15.11% compared to 13.69% in 2020

• PFRS – 32.37% compared to 29.8% in 2020


Health Care Insurance

FY 2021 Health Care Appropriation total of $6.2 Million which is net of:• Current Employee/Retiree Premium Cost Sharing ($893K)

• Offset from Sewer $217k and Building Dept. $100k

• CMS Drug Subsidy and rebates $101,663

$265,000 increase in 2021

• Broker went out to market for proposals.

• Town converted to Self Insured from fully-insured in 2018; No profit to Insurance Provider

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Debt Service (Operating Budget)

Standard & Poor’s Credit Rat ing – “ AA (Posit ive Outlook)”

Principal Debt Payment Obligat ions paid down by $2.3M in FY 2020.

• $2,370,000 scheduled principal payment this year.

Net Debt Outstanding as of 12/ 31/ 20 - $26,002,690

• General Obligation Bonds - $20 million

• Bond Anticipation Notes - $6 million

Total Net Debt to Equalized Valuat ion ($3,005,684,497): 0.86%

Total Net Debt DECLINED BY $18.8 mill ion or 42% since FY 2010

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Debt Service (Sewer Utility)

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Principal Debt reduced by $1 ,575,000 in FY 2020.

• 1,070,000 scheduled to be paid off this year (includes $500,000 payments on BAN’s)

Sewer Util ity Debt Outstanding as of 12/ 31/ 20 - $3,454,681

• Long Term Debt - $2,532,681

• Bond Anticipation Notes - $922,000

“ Pay-A-You-Go” - Util ity Budget includes $250,000 for Capital Projects

No NEW Sewer Util ity Debt - 9TH year in a ROW!


Capital ProjectsTotal allocated for new capital funding is $4,398,930 which includes:

• $2,285,530 in sidewalk, curb and roadway

improvements

• $105,000 for vehicles and heavy equipment

• $590,900 Park & Playground improvements

• $5,000 for Dam improvements

• $240,000 for Building improvements

• $875,000 Fire Equipment

• $297,500 Section 20

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Q&A

Executive Municipal Budget Overview Presentation

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