HARDYSTON TOWNSHIP

2012 Municipal Budget

Presented at

Budget Public Hearing

April 3, 2012

Budget Process/Timeline

§ October

§ November

§ January/February

§ March -May

§ April – June

§ July

§ Dept. budget request forms

submitted to Township Mgr.

§ Dept. budget hearings with Township Manager

§ Preparation of Draft Budget

§ Council Budget review

§ Budget Introduction

§ Public hearing and adoption

Budget Highlights

§ Total budget - $10,093,155

l Tax Levy Increase from 2010 - $57,128

l Represents less than 1% or 0.088% increase

l Increase on an average home $12.55/year

Budget Highlights (con.)

§ Allowable tax levy increase - $263,598

§ Actual tax levy increase - $57,128

§ Balance of allowable increase not being

utilized - $206,470

§ 0.088% increase in the tax levy

Budget Highlights (con.)

§ Budget impacted by the following:

l REVENUE REDUCTIONS:

l Reduction of Income from Interest on

Investments - $40,000

l Reduction of Income from Solar Renewable

Energy Credits*

l *Deferred sale of 2011 credits until market

stabilizes to realize higher return in 2012

Budget Highlights (con.)

l POSITIVE REVENUE CHANGES:

l Modest Increase in Construction Permit Revenue -

$17,000

l Increase in New Inter-Local Revenue (all three new

inter-local partnerships commencing mid-year in 2011

after the adoption of the 2011 budget, a full year’s

contract is added to revenues for 2012):

• Hamburg Borough – Fire Official - $8,160

• Town of Newton – Fire Subcode - $7,140

• Andover Township – Land Use Administration – 39,189

Budget Highlights

§ Continue with pay-as-you-go capital improvement plan:

§ Capital projects include:

l Funds to Replace 1 Single Axle Dump Truck – DPW

l Fund to Replace DVR’s within Municipal Complex – B&G

l Funds for the completion of a program to replace facility

identification signage and welcome signs – EDC

Budget Highlights (con.)

§ Capital projects (con.):

l Funds to Upgrade the main switches within the

Municipal/Police Complex main computer systems–

Computer Technology

l Funds to Replace 1 MDT Laptop for Use in Police Vehicles –

– Police

l Purchase of hydraulic lift stretcher unit (2 yrs. program to

have one at each side of the Township) – EMS

l Continuation of various established replacement programs for replacement of communications equipment, radios, fire hoses, turnout gear, and SCBA air packs

Debt Servicel Debt service appropriation reflects permanent financing

for all municipal debt, including municipal building and new aerial device fire truck, solar energy generating facility, replacement of old municipal building with salt/substation facility on south side of township, upgrades to existing DPW facility and emergency communication upgrades for police, fire and first aid communications throughout the municipality

l In 2011 the Township had a bond sale to permanently finance its remaining short-term note debt. Despite the economic downturn, the Township received a bond rating increase by Standards and Poors and was able to secure a very attractive long-term bond rate, as a result.

Budget Highlights (con.)

§ Operational Projects:

l Road resurfacing projects slated for portions of

the following roads in 2012:

• Portions of the public portion of Crystal

Springs Road

• Oil & Stone

– Old Quarry Road, Scenic Lakes Road,

Franek Road, Orts Road

• 1000 tons of patch to be utilized throughout

the Township where found to be needed.

Budget Highlights (con.)

§ Operational Projects:

l Replacement of two police vehicles

l Replacement of four of five officers who have

retired over the past several years

2012 Municipal Budget Select

Budget Appropriations2012 2011 $ Change % Change

Salaries $ 3,827,888 $ 3,751,807 $ 76,081 2.0%

Operating Expenses $ 3,390,056 $ 3,332,459 $ 57,597 1.7%

Statutory Expenses $ 288,418 $ 283,151 $ 5,267 1.9%

Pension Expenses $ 528,019 $ 532,879 $ (4,860) -0.9%

Capital Improvements $ 415,000 $ 518,500 $ (103,500) -20.0%

Debt Service $ 824,940 $ 713,947 $ 110,993 15.5%

Deferred Charges $ 92,000 $ 100,000 $ (8,000) -8.0%

Reserve for Uncollected Taxes $ 726,833 $ 726,833 $ - 0.0%

Total $ 10,093,154 $ 9,959,575 $ 133,578 1.3%

Salaries38%

Operating Expenses34%

Statutory Expenses3%

Pension Expenses5%

Capital Improvements4%

Debt Service8%

Deferred Charges1%

Reserve for Uncollected Taxes

7%

2012 Appropriations

Differences in Operating 2011 -

2012

§ Increase in fuel costs due to rising prices

§ Net 2% increase to health insurance costs after employee contributions to premium costs

§ Modifications for changes in services for tax collection, finance office, computer technology and zoning – resulted in a modest savings.

2011 Salary Distribution

Dispatch

8%Land

Use/Zoning

2%

Police

47%

Recreation

0%

Construction

9%

Court

2%

Admin.

9%

Public Works

22%

Other Public

Safety

1%

Reserve for Uncollected Taxes

Total Appropriation - $726,833

County

22%

WVRHS

17%

Elem.

School

37%

Municipal

24%

§ Elementary School

l $268,928

§ WVRHS

l $123,561

§ County

l $159,903

§ Municipal

l $174,439

Revenue Comparison 2011-2012

2012 2011 $ Change % Change

Property Taxes 6,511,739$ 6,454,611$ 57,128$ 0.9%

Surplus 980,000$ 977,279$ 2,721$ 0.3%

State Aid 725,074$ 725,074$ -$ 0.0%

Delinquent Taxes 370,000$ 370,000$ -$ 0.0%

Grants 85,664$ 58,817$ 26,847$ 45.6%

Interlocal Services Revenue 934,949$ 901,117$ 33,832$ 3.8%

Construction Code Fees 129,000$ 112,000$ 17,000$ 15.2%

Special Items of Revenue 47,274$ 12,500$ 34,774$ 278.2%

Local Revenue 309,456$ 348,178$ (38,722)$ -11.1%

TOTAL 10,093,155$ 9,959,576$ 133,579$ 1.3%

Surplus Available (Dec. 31)

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

Fund Balance…

How Surplus is Generated

-20%

0%

20%

40%

60%

80%

100%

Misc. Debits/Credits

MRNA

Excess Rev.

Budget Lapse

Historic Change in Surplus

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

19931994199519961997199819992000200120022003200420052006200720082009201020112012

Surplus Available January 1

Historic Use of Surplus

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

$10,000,000

$11,000,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Total BudgetRevenue

Net Taxable Value 1996-2012

$300,000,000$350,000,000$400,000,000$450,000,000$500,000,000$550,000,000$600,000,000$650,000,000$700,000,000$750,000,000$800,000,000$850,000,000$900,000,000$950,000,000

$1,000,000,000$1,050,000,000$1,100,000,000$1,150,000,000$1,200,000,000

1998 2000 2002 2004 2006 2008 2010 2012

2012 Net Taxable Value

Vacant Land4%

Residential80%

Farm (Regular)

1%

Farm (Qualified)0% Commercial

10%

Industrial4%

Apartment1%

Hardyston Township2012 Net Taxable Value

Tax Collection Rate

Delinquent Taxes Outstanding as of

1/1

$200,000

$400,000

$600,000

$800,000

$1,000,000

199519961997199819992000200120022003200420052006200720082009201020112012

Delinquent Tax Outstanding as of 1/1

Hardyston Township Tax Rate

Analysis§ The average annual tax rate increase for

the municipal portion of the tax rate for the

past 15 years (since 1998) has been less

than 1% or 0.94%

§ The total increase in the municipal portion

of an average home’s property taxes over

the past 15 years (including this year) was

$269.58 – an average increase of

$17.97/year

Keys to Future Budgets

§ Development of a 5-Year Strategic Plan for future municipal operations and revenue projections to continue to meet community needs and goals incorporating new cap law changes

§ Consideration of strategies to weather the current and potentially extended period of national and local economic instability

§ Continued development of strategies to address dwindling surplus

§ Conservative and balanced management of resources to provide for the growing needs of an expanding and diversified population and community

§ Continued expansion of Inter-Local Relationships

§ Continued Economic and Tourism Development

2012 Shared Services§ Joint Liability/Workers Comp. Insurance

§ Joint Health Insurance

§ Public Works Services (Sussex Borough)

§ Recycling Collection (Hamburg Borough)

§ Animal Control Services (Wantage)

§ Fuel Pump Services (BOE’s/Franklin/Hamburg/County of Sussex)

§ Littell Center Recreation (Franklin)

§ Lawn Maintenance (Hardyston BOE)

§ Computer Technology (Hardyston BOE)

§ HTMUA – Administration, Billing, Field Service, Finance

2012 Shared Services (cont.)

§ Construction (Franklin, Hamburg, Newton

Sussex)

§ Senior Transport. Services (Sussex Cty.)

§ Fire Prevention (Hamburg Borough

§ Land Use Administration (Andover Twp.)

§ Solid Waste Collection/Recycling

(HTBOE)

Hardyston Lands PreservedTOTAL ACRES WITHIN HARDYSTON TOWNSHIP: 20853.67

OWNER ACREAGE % OF TOTAL

State of New Jersey 4346.32 20.8%

United States of America 174.36 0.8%

Audobon Society 77.73 0.4%

NJ Natural Land Trust 67.42 0.3%

TOTAL TAX EXEMPT OPEN SPACE (1) 4665.83 22.4%

Newark Watershed Cons. & Development Corp. (2) 4001.00 19.2%

Passaic River Coalition (3) 105.13 0.5%

TOTAL TAXABLE OPEN SPACE 4106.13 19.7%

TOTAL PRESERVED LANDS (4) 8771.96 42.1%

Other Tax Exempt Lands (5) 463.65 2.2%

TOTAL ALL TAX EXEMPT LANDS 5129.48 24.6%

ALL TAX EXEMPT + PRESERVED TAXABLE 9235.61 44.3%

Completed Goals:

§ See Available Report of 2011

Accomplishments and 2012 Goals

Improvements to Public Facilities

& Infrastructure § Continue development of independent

closure plan with DEP for landfill using

grant funding

§ Development of the Community Garden

Project

§ Various smaller maintenance related

projects relating to the Municipal Complex

relating to water quality, general

maintenance, etc.

Ongoing Projects

Development and finalization of 5-year

strategic operations plan

§ Negotiations for further expansion of

our inter-local partnership base

§ Development and implementation of

sustainable community and wellness

initiatives

Defining Economic Development

& Planning Focus and Initiatives

§ Continue focus on development of pre-approved

projects

§ Seek additional industrial development

investment in North Church Technical Center

§ Continue pursuit of the implementation of the

Township’s approved affordable housing plan

Challenges§ Limiting growth of operations

§ Navigating an uncertain economy

§ State aid in the new fiscal reality

§ Accurately forecasting development and its impact to service needs and fiscal consequences

§ Continue to reduce reliance on surplus in view of development slow down

§ Continued exploration of shared service opportunities

§ Wisely and adequately meeting State-mandated obligation to affordable housing