1
BOROUGH OF CHATHAM
2014 Municipal Budget
July 11, 2014 RJF
July 11, 2014 RJF 2
Budget Process Schedule (revised 3/10/14)
General & Capital Budget Presentation………..February 24th
COLA Ordinance Introduction……………………February 24th
Budget Discussion…………………………………..March 10th
COLA Ordinance Adoption………………………...March 10th
Budget Introduction………………………………..March 24th
Capital Ordinance Introduction…………………March 24th
Budget Adoption……………………………………April 28th
Capital Ordinance Adoption……………………..April 28th
July 11, 2014 3
Description 2013 2014 +/- +/- Percent
Total Budget $13,673,993 $14,094,778 $420,785 3.08%
Total Tax Rate .399 .405 .006 1.50%
Tax Levy (library included)$8,217,632 $8,361,943 $144,311 1.75%
Municipal Tax Rate .360 .365 .005 1.39%
Library Tax Rate .039 .040 .001 2.56%
Annual Increase for Average Assessed Home of $660,325= $46.22
Budget Overview
2014
RJF
Total Budget (less $165,000 from capital) $13,929,778 $255,785 1.87%
July 11, 2014 RJF 4
$165,000 Road Repairs
Initial Grant Funding (Local Aid 2012) $65,000
Supplemental Grant Funding (early 2013) $250,000
Total Combined Grant Amount $315,000
Anticipated Grant Appropriation $150,000
(unaware of the $250,000 grant)
Balance (to be transferred for other road projects) $165,000
July 11, 2014 RJF 5
Road Improvement Plan Mill & Pave
Center Street (original capital) Other general repairs $25,000 (road surplus)
Duchamp Place (original capital) Yale & Harvard (partial reconstruction)
Summit Avenue (Fern – Borough line) (road surplus)
Red Road (Hillside – Fairmount) (road surplus)
Fairview Avenue (Washington – Borough line) (original capital)
Division Avenue (Cost share with Madison) (road surplus)
Fairmount (County project)
Edgehill Avenue (road surplus)
July 11, 2014 6
Description 2012 2013 12/13 2014 13/14
Increase Increase
Municipal Tax $2,588 $2,635 $47 $2,681 $46 (Including Library)
Open Space Tax $33 $33 No Change $33 No Change
Total Tax $2,621 $2,668 $47 2,714 $46_____
Total Annual Municipal Cost Increase (Average Assessment $660,325)
2014
RJF
7
Tax Levy CAP (3 year bank)
Maximum allowable amount to be
raised by taxation $ 7,518,208
Amount to be raised
by taxation (library tax not included) $ 7,518,208
2013 CAP Bank $ 177,185
2012 CAP Bank $ 180,568 2011 CAP Bank $ 175,516
Total CAP Bank $ 533,269
July 11, 2014
CAP Exclusions
Pension Increases
Capital Improvement Increases
Debt Service Increase
New Ratable Adjustment
To The Tax Levy
Health Insurance Increase (2% inside CAP)
LOSAP Increase
Deferred Charges (all)
Library Tax Is Not Included In The Cap Calculation.
If necessary the three year CAP bank or a portion can be applied to the following year budget which allows for a higher percentage tax rate increase over the 2% CAP limit.
RJF
July 11, 2014 RJF 8
Appropriations CAP (2 year bank)
2013 (actual inside CAP) $8,593,913
2014 3.5% $ 300,786
2012 CAP Banking $628,824
2013 CAP Banking $146,558
Added Assessments $20,511
2014 Maximum Allowed $9,690,595
2014 (actual within CAP) $8,796,554
2014 Maximum $894,041 (allowed within appropriations CAP)
2014 CAP Bank $118,658
CAP Exclusions
Debt Service
Capital Improvements
New Ratable Adjustment
Grants
Reserve for Uncollected Taxes
Deferred Charges
Health Insurance Increase (4% inside CAP)
LOSAP
Snow Emergencies
Library
Joint Meeting
July 11, 2014 RJF 9
0.00
2.00
4.00
6.00
8.00
10.00
2008 2009 2010 2011 2012 2013 2014
Total Tax Rate Increase Comparison
2008 - 2014
8.57%
2.34%
1.43%
3.38%
6.81%
1.79%
P
E
R
C
E
N
T
A
G
E
The 2014 local open space tax remains unchanged
1.50%
10
How was your tax 2013 dollar spent?
School Tax
63%
Municipal
Tax
22%
County
Tax
15%
July 11, 2014
($24,279,800) ($8,349,011) ($5,810,678)
RJF
July 11, 2014 RJF 11
Joint Meeting
4%/4%
Pensions & Benefits
7%/7%
Health Benefits
5%/5%
Boards & Commissions
1%/2%
Parking &
Utilities
3%/4%
Legal &
Insurance
3%/4%
Interlocal Agreements
4%/3%
Police
20%/21%
Public Works
9%/9%
Library
6%/6%
Recreation
1%/1% Administration
6%/6% Fire LOSAP EMS
2%/2% Debt Service
13%/13%
Expense Percentage By Department/Type To The Total Budget
2014
Reserve For Uncollected Taxes
13%/13% Deferred
Charges
2%/2%
Red percent is 2013
12
0%
10%
20%
30%
40%
50%
60%
70%
80%
Madison ChathamBorough
FlorhamPark
Long Hill ChathamTownship
NewProvidence
Summit BerkeleyHeights
Chatham Borough ranks 2nd lowest when compared to surrounding towns
July 11, 2014
Tax dollar percent that funds the budget
RJF
July 11, 2014 RJF 13
0
1
2
3
4
2008 2009 2010 2011 2012 2013 2014
Bil
lio
ns
Chatham Borough Chatham Twp. Florham Park Madison
+6.40%
+.25%
+61%
-2.32%
2008 percentage increase/decrease compared to 2014
Property Valuation & Percentage Increases
2008 - 2014
Madison’s increase is due to revaluation
July 11, 2014 RJF 14
Surplus/Reserve for Uncollected Taxes
2008 -2013
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
2008 2009 2010 2011 2012 2013
Surplus (actual) Reserve for Uncollected Taxes
Chatham Borough’s Reserve for Uncollected Taxes Ranks 7th Highest In Morris County
July 11, 2014 15
0
1
2
3
4
5
6
2008 2009 2010 2011 2012 2013 2014
Mil
lio
ns
Sewer Leases General
Revenues
2008 - 2014
$1,328 $1,168 $1,035 $855 $855
$516 $537 $544 $559 $580
$5,673 $5,579 $5,266
$4,690
$4,025
RJF
$595
$1,030
$4,035
$1,030
$595
$3,904
July 11, 2014 RJF
16
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2008 2009 2010 2011 2012 2013 2014
Mil
lio
ns Surplus Other Court
Parking Sewer State Aid
Leases
General Revenue Breakdown
2008 - 2014
Grants, Permits & Fees included
July 11, 2014 RJF 17
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
2008 2009 2010 2011 2012 2013 2014
Mil
lio
ns
Salary Operating Debt Service Pension #REF!Library
66
63
60
57
54
49
49
Annual Expense Comparison
2008 - 2014 Fulltime Employees
08 – 66 / 09 – 63 / 10 – 60
11 – 57 / 12 – 54 /13 - 49/ 14-49
Key Reductions
Dispatch: 4 – 0
Police: 25 – 19
DPW: 18 – 16
Administration: 14 - 9
July 11, 2014 18
0
200,000
400,000
600,000
800,000
1,000,000
2008 2009 2010 2011 2012 2013 2014
State Aid Trends
2008 - 2014
Year
2014
2013
2012
Amount Allocated
$572,099
$572,099
$572,099
+ / -
Dollars
$0
$ 0
( $ 2,303)
2011
$574,402
$ 4,606
2010
$569,796
($176,853)
2009
$746,649
($ 81,014)
2008
$827,663
($54,462)
RJF
19
Reserve for Uncollected Taxes
Year
2014
2013
2012
RUT
$1,720,576
$1,732,279
$1,725,706
Total Budget
14,094,778
$13,661,993
$13,424,938
% of Budget
12.21%
12.68%
12.85%
2011
$ 2,021,912
$13,628,582
14.83%
2010
$ 2,431,371
$13,820,540
17.59%
2009
$ 2,691,689
$14,309,139
18.81%
2008
$ 2,720,891
$14,242,636
19.10%
July 11, 2014
2008 - 2014
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
8 9 10 11 12 13 14
RJF
July 11, 2014 20
Mandatory Expenses Increases 2014
Pension – PERS/PFRS…………………………………………..$ 23,971
Debt Service……………………………………………………………. 48,924
DPW Contractual Salaries……………………………………….. 22,125
Police Contractual Salaries……………………………………… 59,792
Library……………………………………………………………………... 30,999
Joint Meeting……………………………………………………………. 92,385
TOTAL………………………………………………………………….. $ 278,196
Total Budget Increase $420,785
Less Capital Transfer $165,000
$255,785 (actual increase)
RJF
July 11, 2014 21
Capital Spending
2008 - 2014
$0
$1
$2
$3
$4
$5
2008 2009 2010 2011 2012 2013 2014
Mil
lio
ns
RJF
July 11, 2014 22
0
500,000
1,000,000
1,500,000
2,000,000
8 9 10 11 12 13 14
General Debt Service
2008 - 2014
$1,748
$1,414 $1,312
$1,446
$1,407
$1,782
RJF
$1,798
July 11, 2014 RJF 23
Budget Line Items For Discussion
Line Item Requested Budgeted Recommended
Project Pride 27,030 27,030 27,030
Planner 47,000 23,407 30,000
Planner (COAH) 25,000 0 0
DPW Overtime 89,000 65,000 89,000
DPW Operating 45,500 30,500 45,500
Totals 233,530 145,937 191,530
July 11, 2014 24
0
2
4
6
8
10
12
14
16
2008 2009 2010 2011 2012 2013 2014
Mil
lio
ns
Revenue Taxes Total Budget
Revenue/Tax/Total Budget Comparison
2014
$14.2 $14.3 $13.8 $13.6 $13.4
The
Challenge
$7.0 $7.3 $7.5 $8.2
$7.0 $7.2
$7.2
$6.4 $6.1 $5.5
$13.7
$8.3
$5.7
RJF
$14.1
$8.0
$5.4
25
DISCUSSION
July 11, 2014 RJF