Transcript 0 - Borough of Montvale

2015 Municipal Budget Overview
Borough of Montvale
April 14, 2015
Key Questions
 What are the sources of revenue that the Borough
expects in 2015?
 What are the Borough’s key expenses and
significant expenditures in 2015?
 How will this affect our municipal tax rate?
 What is the current financial state of the Borough?
 What challenges do we face, and what is our
strategy to build upon Montvale’s strong financial
footing?
2015 Budget Summary
Revenues
Budget
Year
(2015)
Proposed
Surplus Anticipated (Utilized)
Prior
Year (2014)
Adopted
Change
Percent
4,750,000
2,800,000
1,950,000
69.64%
486,450
478,450
8,000
1.67%
1,262,378
1,262,378
0
0%
Construction Code
210,000
225,000
<15,000>
<6.67>%
Interlocal Agreements
166,427
166,381
46
0.03%
Public & Private Revenue
685,600
18,577
667,023
3590.59%
Special Items
329,305
300,744
28,561
9.50%
Delinquent Tax
210,000
215,000
<5,000>
<2.33>%
Municipal Tax
11,839,107
11,499,918
339,189
2.95%
19,939,267
16,966,448
2,972,819
17.52%
Local
State Aid
TOTALS
2015 Budget Summary Appropriations
Budget Year
(2015)
Proposed
Salary and Wages
Prior Year
(2014)
Adopted
Change
Percent
4,445,012
4,245,485
199,527
4.70%
992,956
952,199
40,757
4.28%
Other
Appropriations
7,931,257
7,640,232
291,025
3.81%
Debt Service
1,824,105
1,823,305
800
.04%
Capital
Improvements
3,166,958
786,100
2,380,858
302.87%
Reserve for
Uncollected Taxes
1,578,979
1,519,127
59,852
3.94%
TOTALS
19,939,267
16,966,448
2,972,819
17.52%
Deferred Charges
& Statutory
Expenditures
Significant Expenditures
 Road Resurfacing
 Fire Engine Replacement
 Sewer Line Project at Pascack Brook
 Planning, Design, & Engineering Costs for
replacement of Montvale Firehouse
While capital expenditures, the Borough is paying
for these projects and items with current funds, not
additional debt.
Property Tax Levies
2015
2014
2013
2012
11,839,107
11,499,918
11,181,960
10,767,930
102,808
100,465
100,623
118,762
Regional School
12,196,368
11,841,134
11,270,846
10,919,352
Local School
15,523,031
15,070,904
14,645,752
14,217,867
5,449,701
5,290,972
4,960,331
4,961,331
45,111,015
43,803,393
42,159,512
40,985,242
(Projected)
Municipal
Open Space
County
Total Levy
2015 Projected Tax Levy
0.23%
Percent
12.08%
24.61%
Borough
Library
Local School
1.63%
27.04%
Regional School
County
Open Space
34.41%
Tax Rate Comparison
2015
2014
Change Percent
(Projected)
County
.265
.264
.001
.38%
Regional School
.593
.590
.003
.51%
Local School
.755
.750
.005
.67%
Open Space
.005
.005
0
0%
Library
.036
.038
<.002>
<5.26>%
Municipal
.540
.534
.006
1.12%
Total
Municipal
.576
.572
.004
.70%
Total
2.194
2.181
.013
.60%
The average assessed value of a residence is
estimated at approximately $514,300.
The projected increase in the 2015 municipal
portion of tax for an average residence is
estimated at approximately $31.
Montvale Surplus Overview
Surplus plays two important roles for the town: 1) it serves as a
cushion against the impact of negative financial events; and
2) it provides liquidity for cash flow.
Year
Utilized in Budget
2008
$2,325,000
2009
$1,800,000
2010
$1,800,000
2011
$1,800,000
2012
$1,800,000
2013
$2,100,000
2014
$2,800,000
2015 (proposed)
$4,750,000
Balance at Year End
$3,058,780
$2,190,087
$2,955,738
$3,672,643
$4,448,600
$5,686,888
$6,707,625
$4,572,090
Municipal Debt
Year
Bonds
Notes
Authorized
But Not Issued
Total
2010
10,198,000
1,900.000
46,616
12,144,616
2011
12,663,000
0
1,528
12,644,528
2012
11,175,000
0
0
11,175,000
2013
9,685,000
0
0
9,685,000
2014
8,155,000
0
0
8,155,000
Debt Service: Current Schedule
Year
Principal
2015
2016
2017
2018
2019
2020
2021
$ 1,575,000
1,595,000
1,630,000
1,625,000
875,000
425,000
430,000
Combined Existing
Interest
$
249,100
200,950
152,450
105,900
47,563
21,375
10,750
Total
$
1,824,100
1,795,950
1,782,450
1,730,900
922,563
446,375
440,750
Outstanding Debt
At End of Year
$
6,580,000
4,985,000
3,355,000
1,730,000
855,000
430,000
0
Municipal Debt
The Borough’s bond rating is a AAA with a stable outlook.
The following factors (among others) were considered
in determining the rating:
- Surplus and the ability to replenish
- Outstanding debt and the ability to pay
- Tax Base
- Strong financial management practices and a stable
financial position
Surplus vs. Municipal Debt
If Montvale has a significant Surplus, why
don’t we just pay off our Municipal Debt?
• Our current debt is at advantageous rates that
might be difficult to replicate in the future
• We are careful about economic changes that may
place a call on our surplus
• In a sense, we are holding down additional debt by
paying for capital items with surplus this year
• Also: the “fairness” issue…
Long-term Investments: Who Should Pay?
For major projects that will serve Montvale
for 50+ years, like the new firehouse,
financing a large part of it through debt shares
the financial burden of paying for it between
today’s taxpayers and future Montvale
residents.
Challenges Ahead
 Upcoming Infrastructure Investments
– Firehouse Replacement
– Road Maintenance; Aging Sanitary Sewer System
– Fieldstone Turf Replacement
 Changing Corporate Real Estate Environment
– Are Large Corporate HQs Going to Continue?
– Will Tax Appeals Increase in Frequency and Size?
 Employee Pension and Health Benefit Liabilities
– Much of this Driven by Trenton & Overall Economy
– Continue Offering Services While Managing Salaries
and Benefits
Strategies: Infrastructure
 Firehouse Replacement
– Explore financing that dovetails with paydown of
existing Borough debt
– Timing: Spring, 2016
 Road Program
– Develop a multi-year schedule and treat as a regular
line in operating budget
 Fieldstone Turf Replacement/Sanitary Sewers
– Projects require study
– Pursue Grants when Available
Strategies: Corporate Real Estate
 Evaluate Current Zoning
– Review Master Plan
 Continue Outreach to New Corporate Tenants
– Expand Scope to Nontraditional Tenants
– Target Entities with Strong Ties to Specific Location
Infrastructure
 Establish Increased Reserve for Tax Appeals
Strategies: Salary & Benefit Costs
 Manage Health Costs; Explore Alternative Plan
Designs
– Reduced Costs by Approximately 8.2% in 2014
 Achieve Greater Efficiency though Continued
Successful Shared Services
– Realized Savings of Over $300,000 in 2014 through
Pascack Valley DPW
– Consolidated Municipal Court continues to produce
savings
 Continue to Pursue Flexible Employment
Approach in Administration, etc.
Questions?
APPENDIX & EXHIBITS
Grants Received
 Clean Communities
– 2012
$13,601.29
– 2013
$15,976.00
– 2014
$14,984.21
 Recycling Tonnage Grant
– 2012
$6,892.00
– 2013
$12,143.68
– 2014
$10,627.30
Medical Benefits
Comparison of Health Insurance Costs
for 2014 and 2013
Difference
Actual Cost
Group Insurance
Increase
2014
2013
(Decrease)
Medical
631,079
690,014
(58,935)
Prescription
217,357
229,447
(12,090)
43,312
52,100
(8,788)
891,748
971,561
(79,813)
Dental
Total
% Decrease
8.20%
SHARED SERVICE ANALYSIS
BUDGET
2013
BUDGET
2014
(INCREASE)/
DECREASE
ROAD REPAIRS AND MAINTENANCE:
SALARIES AND WAGES
OTHER EXPENSES
$599,735
$306,525
$0
$10,000
$599,735
$296,525
PUBLIC BUILDINGS AND GROUNDS:
SALARIES AND WAGES
OTHER EXPENSES
$101,426
$121,567
$25,000
$40,000
$76,426
$81,567
$60,000
$10,000
$50,000
RECYCLING:
SALARIES AND WAGES
OTHER EXPENSES
$8,550
$120,000
$0
$5,000
$8,550
$115,000
MAINTENANCE OF ALL VEHICLES:
OTHER EXPENSES
$123,000
$34,000
$89,000
$31,000
$23,899
$0
$0
$31,000
$23,899
$56,664
$33,399
$70,377
$217,104
$4,500
$535
$1,913
$1,051
$2,730
$0
$0
$0
$54,752
$32,348
$67,647
$217,104
$4,500
$535
$60,000
$0
$60,000
$0
$1,503,000
($1,503,000)
$1,938,281
$1,632,694
$305,587
SEWER SYSTEM:
OTHER EXPENSES
OPEN SPACE:
SALARIES AND WAGES
OTHER EXPENSES
OTHER EXPENSES - OTHER:
FICA
WORKERS COMPENSATION
PENSION
HEALTH
VISION
LIFE
CAPITAL IMPROVEMENTS
SHARED SERVICE AGREEMENT:
RIVERVALE
BOROUGH OF MONTVALE
CURRENT FUND
ANALYSI S OF REVENUES AND EXPENDI TURES
2011-2016
2011
AUDITED
2012
AUDITED
2013
AUDITED
2014
UNAUDITED
2015
PROPOSED/PROJECTED
2016
PROJECTED
REVENUES
SURPLUS
LOCAL REVENUES
STATE AI D
UNI FORM CONSTRUCTI ON
I NTERLOCAL SERVI CE
PUBLI C AND PRI VATE
OTHER SPECI AL I TEMS
DELI NQUENT TAX
AMOUNT TO BE RAI SED
EXCESS REVENUES
MRNA
RESERVES LAPSED
OTHER
$1, 800,
$535,
$1, 262,
$404,
$81,
$47,
$359,
$289,
$11, 632,
000
317
378
853
165
322
545
677
913
$623, 008
$518, 774
$4, 005
$593, 843
$808, 966
$9, 945
$782, 510
$797, 608
$10, 415
$537, 452
$743, 307
$26, 401
$500, 000
$850, 000
000
450
378
000
710
$0
$320, 000
$210, 000
$12, 243, 938
$1, 250, 000
$500, 000
$750, 000
$17, 558, 957
$18, 193, 243
$19, 519, 639
$21, 052, 105
$22, 553, 732
$20, 150, 476
$4, 204, 649
$6, 465, 775
$4, 460, 047
$7, 038, 105
$25, 000
$1, 855, 175
$1, 090, 674
$1, 399, 648
$1, 131
$25, 000
$1, 820, 788
$943, 978
$1, 435, 562
$3, 806
$4, 734, 276
$6, 532, 074
$330, 219
$350, 000
$1, 825, 290
$918, 864
$1, 479, 943
$10, 685
$4, 245, 485
$5, 804, 571
$1, 850, 881
$1, 023, 698
$1, 823, 305
$952, 199
$1, 519, 127
$12, 102
$4, 445, 012
$6, 057, 830
$1, 873, 427
$3, 166, 958
$1, 824, 105
$992, 956
$1, 578, 979
$15, 042, 052
$15, 727, 286
$16, 181, 351
$17, 231, 368
$19, 939, 267
$17, 650, 476
$2, 516, 905
$2, 465, 957
$3, 338, 288
$3, 820, 737
$2, 614, 465
$2, 500, 000
0. 444
$1, 800,
$531,
$1, 262,
$376,
$156,
$379,
$433,
$247,
$11, 593,
000
209
378
931
071
888
126
685
201
0. 453
$2, 100, 000
$569, 432
$1, 262, 378
$310, 703
$150, 321
$194, 189
$444, 506
$587, 019
$12, 310, 558
0. 555
$2, 800, 000
$584, 621
$1, 262, 378
$235, 186
$157, 538
$271, 394
$368, 976
$364, 103
$13, 700, 747
0. 572
$4, 750, 000
$550, 250
$1, 262, 378
$225, 000
$155, 000
$685, 600
$386, 397
$250, 000
$12, 939, 107
$2, 750,
$486,
$1, 262,
$210,
$167,
0. 576
EXPENDITURES
OPERATI ONS:
SALARI ES
OTHER EXPENSE
INTERLOCAL SERVICE
CAPI TAL
DEBT SERVI CE
DEFEERED/ STATUTORY
RESERVE FOR UNCOLLECTED
OTHER
ADJ USTMENTS
$4, 533,
$6, 168,
$1, 922,
$560,
$1, 795,
$1, 042,
$1, 627,
200
729
710
000
955
000
882
$110, 000
SURPLUS 1/ 1
$2, 516, 905
$2, 955, 738
$2, 575, 957
$3, 672, 643
$3, 338, 288
$4, 448, 600
$3, 820, 737
$5, 686, 888
$2, 614, 465
$6, 707, 625
$2, 500, 000
$4, 572, 090
SURPLUS ANTICIPATED
$5, 472, 643
$1, 800, 000
$6, 248, 600
$1, 800, 000
$7, 786, 888
$2, 100, 000
$9, 507, 625
$2, 800, 000
$9, 322, 090
$4, 750, 000
$7, 072, 090
$2, 750, 000
SURPLUS 12/ 31
$3, 672, 643
$4, 448, 600
$5, 686, 888
$6, 707, 625
$4, 572, 090
$4, 322, 090
0. 596
BOROUGH OF MONTVALE
ANALYSIS OF BUDGET REVENUES
FIVE YEAR
CATEGORY
SURPLUS
LOCAL REVENUE
STATE AID
2011
2012
INCREASE/
<DECREASE>
PERCENT
2012
2013
0
0.00%
1,800,000
2,100,000
467,100
(2,400)
-0.51%
467,100
1,262,378 1,262,378
0
0.00%
1,800,000 1,800,000
469,500
INCREASE/
<DECREASE>
PERCENT
INCREASE/
<DECREASE>
PERCENT
2014
CUMULATIVE
INCREASE/ INCREASE/
PROPOSED <DECREASE> <DECREASE>
2015
PERCENT
PERCENT
2013
2014
300,000
16.67%
2,100,000
2,800,000
700,000
33.33%
2,800,000
4,750,000
468,450
1,350
0.29%
468,450
478,450
10,000
2.13%
478,450
1,262,378
1,262,378
0
0.00%
1,262,378
1,262,378
0
0.00%
1,950,000
69.64%
2,950,000
163.89%
486,450
8,000
1.67%
16,950
3.61%
1,262,378
1,262,378
0
0.00%
0
0.00%
UNIFORM CONSTRUCTION CODE
225,000
225,000
0
0.00%
225,000
225,000
0
0.00%
225,000
225,000
0
0.00%
225,000
210,000
(15,000)
-6.67%
(15,000)
-6.67%
INTERLOCAL SERVICE AGREEMENTS
134,375
161,606
27,231
0.00%
161,606
156,719
(4,887)
0.00%
156,719
166,381
9,662
0.00%
166,381
166,427
46
0.03%
32,052
100.00%
29,069
28,992
(77)
-0.26%
28,992
24,359
(4,633)
-15.98%
24,359
18,577
(5,782)
-23.74%
18,577
685,600
667,023
3590.59%
656,531
2258.53%
OTHER SPECIAL ITEMS
288,422
366,155
77,733
26.95%
366,155
376,970
10,815
2.95%
376,970
300,744
(76,226)
-20.22%
300,744
329,305
28,561
9.50%
40,883
14.17%
DELINQUENT TAXES
250,000
205,000
(45,000)
-18.00%
205,000
205,000
0
0.00%
205,000
215,000
10,000
4.88%
215,000
210,000
(5,000)
-2.33%
(40,000)
-16.00%
10,563,924 10,767,930
204,006
1.93%
10,767,930 11,181,960
414,030
3.85%
11,181,960 11,499,918
317,958
2.84%
11,499,918
11,839,107
339,189
2.95%
1,275,183
12.07%
16,966,448
19,939,267
PUBLIC AND PRIVATE (GRANTS)
AMOUNT TO BE RAISED
15,022,668 15,284,161
15,284,161 16,000,836
16,000,836 16,966,448