Township of EdisonNew Jersey2020 Budget Presentation

Introduction

2

MayorThomas Lankey

Council Members

Council PresidentJoyce Ship-Freeman

Vice PresidentSamip Joshi

Richard BrescherJoseph CoyleRobert Diehl

Alvaro GomezAjay Patil

2019 Tax Rate ComparisonSource: NJ Department of Treasury 2019 Abstract of Ratables for Middlesex County

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County Tax County Open Space Tax

District School Tax

Reg. Consol. & Joint School Tax

Municipal Local Purpose Tax

Municipal Open Space Tax

Municipal Library Tax General Tax Rate County Equalization

RatioEffective Tax

Rate

Cranbury Twp 0.372 0.032 0.996 0.000 0.348 0.020 0.031 1.799 96.82 1.734

South Brunswick Twp 0.951 0.080 3.040 0.000 0.887 0.040 0.087 5.085 37.66 1.911

Monroe Twp 0.429 0.036 1.463 0.000 0.474 0.015 0.039 2.456 83.43 2.048

Old Bridge Twp 0.838 0.071 2.987 0.000 0.980 0.000 0.076 4.952 43.16 2.134

South Plainfield Boro 0.998 0.084 3.594 0.000 1.321 0.000 0.092 6.089 35.86 2.171

Piscataway Twp 0.365 0.031 1.257 0.000 0.621 0.000 0.034 2.308 95.95 2.205

Edison Twp 0.867 0.073 3.108 0.000 1.280 0.000 0.080 5.408 41.11 2.217

Plainsboro Twp 0.369 0.031 1.508 0.000 0.347 0.009 0.034 2.298 96.98 2.227

South River Boro 1.240 0.105 4.334 0.000 2.443 0.000 0.115 8.237 28.91 2.372

New Brunswick City 0.364 0.031 0.927 0.022 1.046 0.000 0.033 2.423 99.36 2.374

Sayreville Boro 0.752 0.064 2.905 0.000 1.423 0.020 0.069 5.233 48.05 2.484

Metuchen Boro 0.809 0.068 3.684 0.000 1.328 0.000 0.073 5.962 44.29 2.628

Helmetta Boro 0.420 0.036 1.908 0.000 0.725 0.000 0.000 3.089 86.16 2.631

Carteret Boro 0.372 0.032 1.150 0.000 1.175 0.030 0.034 2.793 96.27 2.657

South Amboy City 0.372 0.032 1.148 0.000 1.186 0.000 0.034 2.772 96.41 2.666

East Brunswick Twp 1.463 0.123 7.115 0.000 2.164 0.019 0.136 11.020 24.36 2.679

Perth Amboy City 0.378 0.032 0.803 0.000 1.743 0.000 0.033 2.989 96.59 2.841

Woodbridge Twp 1.289 0.109 5.829 0.000 3.058 0.000 0.119 10.404 27.82 2.877

Middlesex Boro 1.129 0.095 5.263 0.000 2.575 0.000 0.105 9.167 31.78 2.899

Milltown Boro 0.735 0.062 3.731 0.000 1.466 0.000 0.068 6.062 48.78 2.945

Spotswood Boro 0.396 0.034 1.893 0.000 0.962 0.000 0.036 3.321 91.26 3.002

North Brunswick Twp 0.671 0.057 3.548 0.000 1.302 0.030 0.060 5.668 54.28 3.052

Dunellen Boro 0.340 0.029 1.893 0.000 0.810 0.000 0.031 3.103 106.34 3.265

Jamesburg Boro 0.676 0.057 3.584 0.000 1.806 0.000 0.062 6.185 52.85 3.269

Highland Park Boro 0.878 0.074 5.176 0.000 2.207 0.000 0.080 8.415 40.78 3.422

2019 Taxes in Other Towns

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A. Effective Tax Rate From the 2019 Middlesex County Abstract of Ratables

B. 2019 Taxes equals Effective Rate x Market Value of $437,200

C. Average Household Market Value is $437,200 and an Assessed Value of $179,900

Taxes(1)Effective

RateCranbury Twp 7,583 1.734South Brunswick Twp 8,356 1.911Monroe Twp 8,952 2.048Old Bridge Twp 9,331 2.134South Plainfield Boro 9,491 2.171Piscataway Twp 9,641 2.205Edison Twp 9,692 2.217Plainsboro Twp 9,736 2.227South River Boro 10,371 2.372New Brunswick City 10,379 2.374Sayreville Boro 10,862 2.484Metuchen Boro 11,488 2.628Helmetta Boro 11,502 2.631Carteret Boro 11,615 2.657South Amboy City 11,656 2.666East Brunswick Twp 11,715 2.679Perth Amboy City 12,422 2.841Woodbridge Twp 12,576 2.877Middlesex Boro 12,676 2.899Milltown Boro 12,878 2.945Spotswood Boro 13,124 3.002North Brunswick Twp 13,344 3.052Dunellen Boro 14,276 3.265Jamesburg Boro 14,291 3.269Highland Park Boro 14,961 3.422

2020 Tax Levy Breakdown

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2020 Average Household Market Value $476,240

Assessed Value $180,400

Total Tax Rate 5.656Total Taxes $10,203.42

School$5,711.46 55.97%

Municipal$2,475.09 24.26%

Library$156.95 1.54%

County$1,859.92 18.23%

Total Ratable Value

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YEARTOTAL NET

TAXABLE VALUE EQUALIZATION

RATE

Change in Equalization

RateEQUALIZED

VALUE 2014 7,028,001,196 49.83 -0.27 14,103,955,842 2015 7,064,183,022 48.19 -1.64 14,707,968,404 2016 7,066,343,552 45.07 -3.12 15,727,414,723 2017 7,096,395,983 44.60 -0.47 15,961,613,143 2018 7,144,232,527 43.21 -1.39 16,583,245,741 2019 7,194,825,765 41.11 -2.1 17,551,031,338 2020 7,261,505,066 37.88 -3.23 19,214,656,348

7*Proposed based on current budget presentations

County Equalized Value

2014 2015 2016 2017 2018 2019 2020

% Change 2019-2020

Carteret Boro 1,960,746,661 2,215,022,158 2,183,837,869 2,206,662,949 2,289,561,570 2,566,484,822 2,749,814,139 7.143%Cranbury Twp 1,561,888,554 1,467,820,463 1,559,947,896 1,525,848,058 1,630,433,601 1,825,460,397 1,904,783,157 4.345%Dunellen Boro 553,084,033 568,041,053 593,289,232 601,419,131 597,114,728 622,635,344 647,453,389 3.986%East Brunswick Twp 7,243,291,908 7,171,369,479 7,140,250,110 7,273,330,826 7,514,827,698 7,836,894,006 7,609,709,616 -2.899%Edison Twp 14,154,869,738 14,707,968,404 15,727,414,723 15,961,613,143 16,583,245,741 17,551,031,338 19,214,656,348 9.479%Helmetta Boro 204,530,949 201,665,013 202,885,809 211,121,144 207,868,241 217,881,336 216,995,616 -0.407%Highland Park Boro 1,293,534,693 1,275,352,475 1,298,309,135 1,271,362,906 1,362,134,950 1,408,215,339 1,413,751,393 0.393%Jamesburg Boro 432,680,593 443,277,283 435,350,539 443,026,923 446,595,618 450,458,510 438,678,405 -2.615%Metuchen Boro 2,121,701,671 2,190,249,757 2,283,881,743 2,343,041,025 2,380,520,174 2,402,189,438 2,488,765,476 3.604%Middlesex Boro 1,409,619,504 1,407,192,360 1,416,000,849 1,459,868,096 1,487,917,062 1,558,756,387 1,546,308,514 -0.799%Milltown Boro 865,099,041 857,046,578 858,236,200 882,224,874 892,836,364 914,675,588 965,595,580 5.567%Monroe Twp 6,719,653,264 7,373,011,854 8,097,648,564 8,647,586,697 8,915,617,575 9,309,723,058 9,627,707,884 3.416%New Brunswick City 3,173,887,778 3,276,893,385 3,209,818,471 3,340,868,868 3,447,263,259 3,465,543,605 3,555,744,868 2.603%

North Brunswick Twp 4,573,448,641 4,488,181,475 4,535,680,708 4,498,276,710 4,591,529,090 4,653,563,648 4,792,576,882 2.987%Old Bridge Twp 6,807,582,255 7,009,317,782 7,355,860,113 7,537,644,595 8,228,233,085 8,121,067,833 8,435,071,630 3.867%Perth Amboy City 3,204,095,668 3,206,794,805 3,074,156,692 3,264,101,142 3,178,439,442 3,462,346,579 3,507,489,171 1.304%Piscataway Twp 6,158,768,621 6,362,944,683 6,992,903,825 6,992,261,473 6,982,716,964 7,900,321,863 8,172,161,130 3.441%Plainsboro Twp 3,793,949,572 3,934,558,955 4,049,537,640 4,337,221,593 4,485,181,379 4,693,534,890 4,582,818,068 -2.359%Sayreville Boro 4,441,520,316 4,446,175,185 4,569,924,865 4,673,153,751 4,703,088,282 4,835,821,184 5,058,685,991 4.609%South Amboy City 836,937,513 829,336,800 859,767,737 842,359,951 877,872,449 930,577,455 958,844,813 3.038%South Brunswick Twp 7,857,568,028 7,979,299,583 8,751,413,961 8,677,593,421 8,842,349,546 10,203,328,560 10,057,209,811 -1.432%South Plainfield Boro 3,714,283,185 3,832,729,139 3,813,794,648 3,723,235,606 3,843,714,759 4,006,630,876 4,356,261,017 8.726%South River Boro 1,319,732,478 1,293,849,676 1,341,187,237 1,354,166,813 1,386,482,532 1,423,394,580 1,450,246,131 1.886%Spotswood Boro 763,687,429 773,106,424 779,306,164 785,955,400 793,187,090 819,444,152 854,448,456 4.272%Woodbridge Twp 10,754,813,319 10,844,503,459 11,525,153,357 10,713,831,035 10,913,703,479 11,549,228,325 11,849,664,473 2.601%

95,920,975,412 98,155,708,228 102,655,566,087 103,567,776,130 106,582,434,678 112,729,209,113 116,455,441,958 3.305%

Levy Cap Calculation

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Levy CAP Calculation ADJUSTED TAX LEVY 95,928,036.75

Prior Year Amount Raised by Taxation 92,125,992.89 Additions:Less: Prior Year Deferred Charges: Emergencies - New Ratable Adjustment to Levy 600,901.12

92,125,992.89 Subtotal 96,528,937.87Add: 2% CAP Increase 1,842,519.86 Adjusted Tax Levy Prior to Exclusions 93,968,512.75

Cap Bank Data

Exclusions: 2017 3,743,314.00Allowable Debt Service and Capital Lease 1,969,368.00 2018 1,160,833.00

Less Cancelled or Unexpended Exclusion 9,844.00 2019 335,176.00

ADJUSTED TAX LEVY 95,928,036.75 Total Allowable 2020 Operating Appropriations within "CAP" 101,768,260.87

2020 Budget Amount to be Raised 99,700,451.97

Amount that 2019 Local Tax is Under Tax Levy Cap 2,067,808.90

2020 Non-Property Tax Revenue

Surplus Anticipated$7,289,246 14.43%

Library $6,327,927 12.53%

Other Misc. Local Revenues $9,430,999

18.67%

Energy Receipts and Property Tax

Assistance $16,042,72631.76%

Fees & Permits$1,593,687 3.15%

Municipal Hotel Tax$905,640 1.79%

Uniform Construction

Code $5,396,302 10.68%

Latchkey$1,000,000 1.98%

Tax Appeal Settlements $2,531,950

5.01%

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2020 Appropriations

Municipal Services $44,241,244 29.45%

Public Safety $56,607,408 37.68% Debt Service,

Infrastructure Improvements $15,249,367 10.15%

Insurance $27,792,683 18.50%

Library $6,327,927 4.21%

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Change in Revenues and Appropriations

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Source: Township of Edison

Non-Property Tax Revenues Appropriations

2020 2019 2018Difference

(2020-19)Percent Change

Other Misc. Local Revenues 8,494,476 7,365,847 8,068,549 1,128,629 15.322%Energy Receipts and Property

Tax Assistance 16,042,726 16,042,726 16,042,726 - 0.000%Fees and Permits 1,593,687 1,418,056 1,346,800 175,631 12.385%

Uniform Construction Code 5,396,302 4,959,001 6,283,342 437,301 8.818%Municipal Hotel Tax 905,640 1,058,105 1,087,101 (152,465) -14.409%

Latchkey 1,000,000 2,124,012 2,025,609 (1,124,012) -52.919%Surplus Anticipated 7,289,246 8,222,182 9,250,359 (932,936) -11.347%

Sub-Total 40,722,077 41,189,929 44,104,485 (467,852) -1.136%

Note Sale Premium 936,523 1,175,524 731,565 (239,001) -20.331%Cancellation of Appropriations

and Fund Emergency Notes - 3,245,000 - (3,245,000) -100.000%Tax Appeal Settlements 2,531,950 - - 2,531,950 100.000%

Total 44,190,550 45,610,453 44,836,050 (1,419,903) -3.113%

Note: Does not include Debt Service and Library

2020 2019 DifferencePercent Change

Public Safety 56,607,408 55,193,867 1,413,541 2.561%Insurance 27,792,683 26,788,065 1,004,618 3.750%

Municipal Services 44,241,244 43,247,975 993,269 2.297%Total 128,641,335 125,229,907 3,411,428 2.724%

One Time Revenues

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2020 2019 2018 2017 2016 2015 2014FEMA Reimbursement - Sandy 657,382

Reserve for NJEIT Loan 144,947Sale of Liquor Licenses 412,000 350,000 1,000,000

Community Contribution 500,000 400,000Cancellation of Trust Interfund 492,493

Reserve for Debt Service 104,716 102,411 100,158 97,954 189,488Note Sale Premium 936,523 1,175,524 731,565 210,953 643,000

FEMA Reimbursement - January Blizzard 300,000Cancellation of Funded Ordinances 2,436,000

Cancellation of MCIA Rerve Fund 253,000Sale of Property 121,000

Cancellation of Tax Maps Reserve 600,000Stormwater Discharge Fees 473,312

Capital Surplus 305,922Cancel 2018 Appropriations 3,245,000

Fund Emergency Notes 2,263,600Tax Appeal Settlements 2,531,950

Sub Total 3,573,189 6,786,535 1,610,957 1,941,907 5,063,981 0 1,802,329

Surplus Used in Budget 7,289,246 5,958,522 9,250,359 7,987,461 3,736,455 10,000,000 6,450,000

Total 10,862,436 12,745,057 10,861,316 9,929,368 8,800,436 10,000,000 8,252,329

Total Assessed Value

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2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

7.237 7.303

7.108 7.050 6.992 7.028 7.064 7.066 7.096 7.144 7.195 7.261

(In Billions)

Source: Township of Edison

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Tax Appeal Overview

At the State Tax Court level a total of 105 appeals were filed in 2019. Over 30% of those appeals have been resolved, further showing our approach to resolving matters in a timely fashion to lessen the exposure to the Township. According to our Tax Appeal Professionals we have approximately 446 appeals open at the Tax Court level representing 270 properties. Prior to the onset of the pandemic the Reserve for Tax Appeals is sufficient to cover the Township’s liability based on our Risk Exposure Analysis of each property.

*154=138+16 Assessor Appeals for Hospital Properties**190=170+20 Assessor Appeals for Hospital Properties

Year Docket Cases Properties Total Assessment Change

Total Refunds Paid (multiple year of

appeals)

Appeals Still Pending

2009 167 204 35,238,200.00 $ 1,288,399.22 2010 273 307 194,836,600.00 2,429,151.61 12011 292 353 151,817,200.00 6,697,780.81 22012 259 381 134,042,598.00 5,501,359.38 122013 325 422 141,313,800.00 6,465,084.29 182014 257 349 187,251,669.00 8,700,875.75 442015 153 201 161,029,228.00 7,730,464.60 362016 154 190 76,011,820.00 3,656,739.34 852017 123 149 12,633,700.00 639,995.65 1072018 96 126 16,315,700.00 1,558,853.07 682019 105 153 12,527,000.00 442,104.65 73

Total $ 45,110,808.37 446

Tax Appeal Debt Repayment

15

2014 2015 2016 2017 2018 2019 2020 2021

2.9700 2.9710

4.5220 4.1000

2.1100 2.0900 2.0700 2.0490

(In Millions)

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For the years 2014 through 2019 the Township invested $101.12 million in the Township’s infrastructure. These investments were made in the following categories:

Investing in Edison

Category AmountRoads $40.00 millionDPW $14.00 millionRecreation $3.00 million

Police $11.70 millionFire $8.80 millionGeneral* $9.76 millionBuildings $13.86 million

* General includes Animal Shelter, Health and Senior Services and Various Technology

Road Improvement Program

17

Year Number ofTotal Length (Centerline

miles)Construction Cost

2014(1) 36 15.2 $2.90 million

2015/2016 62 18.64 $7.90 million

2016/2017 58 15.85 $6.00 million

2017 59 17.6 $5.20 million

2018 (2) 73 10.81 $6.00 million

2019 (3) 73 15.6 $6.00 million

2020 (4) 57 15.0 $6.00million

Total 418 108.7 $40.00 million

1 Includes 11 streets (3.2 miles) paved by the Edison Township Road Department

2 Does not include the resurfacing of roadways or portions of roadways associated with the Drainage projects, or DOT funded projects funded with FY18 monies under contract and yet to be paved.

3 Approximate Length and quantity of streets. Projects under construction but not yet complete.

4 Approximate Length and quantity of streets. Projects have been awarded but not under construction.

What Do You Get for $2,475.09

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Police, Fire Protection and Emergency Medical Services

Road Infrastructure Improvements

Snow Plowing and Salting Services

Recycling Collection

Community Outreach Program

Recreation Programming for all ages and interests

Maintenance of parks and fields

Animal Control and Shelter Services

Support of Edison Arts Society and the Edison Memorial Tower

Vital Statistics and Health Services

Senior Services (transportation, social activities, senior lunch program)

School$5,711.46 55.97%

Municipal$2,475.09 24.26%

Library$156.95 1.54%

County$1,859.92 18.23%

Financial Challenges

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The COVID-19 pandemic resulted in a three month hold on all our lives. The State has just begun Phase II of re-opening. The full impact of the shutdown has not yet been fully evaluated.

The great recession caused a decline in total assessed values beginning 2011 leading to significant tax appeals. In 2019 105 tax appeals were filed and 30% have been resolved. The Township continues to address appeals in a timely basis.

In 2020, the Township returned $2.5 million in tax appeal resolutions to the budget. This is a one time revenue.

Edison paid tax refunds totaling more than $45 million between 2009 and 2019.

Though total assessed values began increasing in 2014, they still have not reached pre-recession levels.

Financial Challenges

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• Rather than dramatically increasing tax rates to make up for the revenue shortfall, the Township used all available reserves in order to deliver quality services.

• Approximately 85% of the Township’s budget is due to union contracts and state regulations.

• The majority of the Township’s reserves is used to balance the 2020 Budget.• Due to the pandemic, it is unclear if the Township will be able to refill its reserves.

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Edison Moving Forward

Address the financial challenges.

Update financial projections to reflect necessary changes in revenues and operating costs while still maintaining Edison’s investment in its infrastructure.

Expansion of tax base through responsible redevelopment and economic growth.

Expansion of our animal welfare services and outreach.

Continue evaluation of Community Center Project.

Maintain investments for infrastructure improvements.

Prioritizing investment in public safety both through capital investments and a stringent hiring process.

Sustain technological initiatives that reduce costs and gain productivity.

Identify and modify organizational processes to ensure efficient and accurate work flow.

Continue increasing our commercial ratable base to ensure a stable residential tax rate.