![Page 1: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/1.jpg)
Executive Municipal Budget Overview Presentation
Jill ian Barrick, Business Administrator
Town Council Meeting | May 25, 2021
FY 2021
![Page 2: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/2.jpg)
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
2
Budget Summary Points
![Page 3: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/3.jpg)
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
3
![Page 4: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/4.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
FY 2021 Property Tax Rates Breakdown
4
$0.36 of Each Total Tax Dollar
Funds Municipal Government
Municipal36.3%
School District50.3%
County11.8%
Library1.5%
![Page 5: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/5.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
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
5
![Page 6: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/6.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Tax BaseFY 2021 Town Net Assessed Valuation: $2,296,392,450
$29 million increase as compared to 2020 ratables
6
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
![Page 7: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/7.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Equalization Rate
7
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
![Page 8: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/8.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Financial Summary Totals
8
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%
![Page 9: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/9.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
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
9
![Page 10: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/10.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
FY 2021 Anticipated Revenues (%)“Where The Budget $$ Comes From”
10
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%
![Page 11: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/11.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
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
![Page 12: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/12.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
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
12
![Page 13: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/13.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
“State Aid” aka Energy Tax Receipts and CMPTRA
13
$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
![Page 14: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/14.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
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.
14
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
![Page 15: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/15.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Fund Balance Trend
15
$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
![Page 16: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/16.jpg)
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%
![Page 17: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/17.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
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
17
![Page 18: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/18.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
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
18
![Page 19: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/19.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
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
19
*compared to FY2020 Budget
![Page 20: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/20.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
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
20
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
![Page 21: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/21.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
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
21
![Page 22: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/22.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
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
22
![Page 23: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/23.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Debt Service (Sewer Utility)
23
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!
![Page 24: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/24.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
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
24
![Page 25: Executive Municipal Budget Overview Presentation](https://reader031.vdocuments.mx/reader031/viewer/2022013000/61c9b2b0398b8c3da04c2b26/html5/thumbnails/25.jpg)
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Q&A