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Executive Summary
The City of Bayonne's Comprehensive Annual Financial Report (CAFR) for the year ended December 31, 2015, presents the city's financial position and operating results. The report includes financial statements, supplementary schedules, and additional information relating to internal control and compliance. The City operates under a Mayor and Council Form of Government and is situated on a peninsula bounded by Newark Bay and Upper New York Bay, providing a broad tax base.
The CAFR is organized into several sections: Introductory, Financial, Supplementary Data, Additional Information Relating to Internal Control and Compliance, Statistical, and General. It uses accounting practices as prescribed by the State of New Jersey, Division of Local Government Services. The report offers insights into the City's financial activities, including fund balances, revenues, expenditures, and debt management. There were issues regarding the accounting for certain grant program expenditures and potential weaknesses in the City's internal control procedures during the audit.
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Document Text
--- Document: Comprehensive Annual Financial Report (Audited) Document ---
CITY OF BAYONNE
STATE OF NEW JERSEY
NEW JERSEY COMPREHENSIVE
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2015
CITY OF BAYONNE
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
DECEMBER 31, 2015
PAGE
EXHIBIT TABLE
SCHED.
Introductory Section:
Letter of Transmittal ………………………………………………………………
1 - 15
Officials in Office …………………………………………………………………
16
Financial Section:
Independent Auditor's Report ………………………………………………………17 - 20
Management Discussion and Analysis …………………………………………… 21 - 28
Basic Financial Statements
Combined Balance Sheet - Regulatory Basis -
All Fund Types and Account Groups ………………………………………29 - 30
Statement of Revenues, Expenditures and Changes in Fund Balance -
Regulatory Basis - All Fund Types and Account Groups ………………… 31 - 32
Statement of Revenues, Expenditures and Changes in Fund Balance -
Regulatory Basis - Budget vs. Actual -
All Fund Types and Account Groups ………………………………… 33 - 34
Notes to Financial Statements ………………………………………………………35 - 102
Supplementary Data Section:
Current Fund
Comparative Schedule of:
Assets, Liabilities, Reserves and Fund Balance ………………………………103 - 104
A
Operations and Changes in Fund Balance …………………………………… 105 - 106
A-1
Schedule of:
Revenues and Other Credits to Income ……………………………………… 107 - 108
A-2
Revenues - Analysis of Budgeted Revenues …………………………………
109
A-2a
Revenues - Analysis of Non-Budget Revenues ………………………………
110
A-2b
Expenditures and Other Charges to Income ……………………………………111 - 120
A-3
Cash and Cash Equivalents ……………………………………………………
121
A-4
Taxes Receivable and Analysis of Property Tax Levy ………………………… 122
A-5
Tax Title Liens …………………………………………………………………
123
A-6
Intergovernmental Receivables ………………………………………………
123
A-7
Revenue Accounts Receivable ………………………………………………… 124
A-8
i
CITY OF BAYONNE
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
DECEMBER 31, 2015
PAGE
EXHIBIT TABLE
SCHED.
Supplementary Data Section (continued):
Current Fund (continued)
Schedule of:
Other Accounts Receivable……………………………………………………
125
A-9
Deferred Charges ………………………………………………………………
125
A-10
Appropriation Reserves ……………………………………………………… 126 - 128
A-11
Local District School Tax Payable ……………………………………………
129
A-12
County Taxes Payable …………………………………………………………
129
A-13
Special Improvement District Tax Payable ……………………………………
130
A-14
Contracts Payable ……………………………………………………………… 130
A-15
Prepaid Taxes …………………………………………………………………
131
A-16
Tax Overpayments ……………………………………………………………
131
A-17
Tax Anticipation Notes Payable ………………………………………………
132
A-18
Due to State of New Jersey - For Senior Citizens' and Veterans' Deductions …
133
A-19
Reserve for Urban Enterprise Zone Funds ……………………………………
134
A-20
Reserves for Other …………………………………………………………… 135 - 136
A-21
Federal and State Grants Fund
Schedule of:
Federal and State Grants Receivable ………………………………………… 137 - 138
A-22
Reserve for Federal and State Grants - Appropriated …………………………139 - 141
A-23
Unappropriated Grant Funds …………………………………………………
142
A-24
Trust Fund
Schedule of:
Assets, Liabilities and Reserves - All Trust Funds ……………………………
143
B
Cash and Cash Equivalents - All Trust Funds …………………………………
144
B-1
Animal Control Trust Fund
Schedule of:
Due to State of New Jersey - Dog License Fees ………………………………
145
B-2
Reserve for Animal Control Expenditures ……………………………………
145
B-3
Due to Current ………………………………………………………………
146
B-4
ii
CITY OF BAYONNE
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
DECEMBER 31, 2015
PAGE
EXHIBIT TABLE
SCHED.
Supplementary Data Section (continued):
Trust Fund (continued)
Insurance Trust Fund
Schedule of Reserve for Insurance Expenditures …………………………………
147
B-5
Insurance Trust Fund
Schedule of Due to Current ………………………………………………………… 148
B-6
Tax Lien Redemption Trust Fund
Schedule of Reserve for Tax Lien Redemption Expenditures ……………………
149
B-7
Tax Lien Redemption Trust Fund
Schedule of Due to Current ………………………………………………………… 149
B-8
Housing and Urban Development Grant Fund
Schedule of:
CDBG Grants Receivable ……………………………………………………… 150
B-9
Interfunds Payable ……………………………………………………………
151
B-10
Reserve for CDBG Grant Expenditures ………………………………………
151
B-11
Other Trust
Schedule of:
Due to Current Fund …………………………………………………………… 152
B-12
Accounts Payable ………………………………………………………………
153
B-13
Due to State of New Jersey ……………………………………………………
153
B-14
Miscellaneous Reserves ……………………………………………………… 154 - 155
B-15
General Capital Fund
Schedule of:
Assets, Liabilities, Reserves and Fund Balance ………………………………
156
C
Fund Balance …………………………………………………………………
157
C-1
Analysis of Cash and Investments …………………………………………………158 - 159
C-2
Analysis of Cash and Cash Equivalents Ending Balance …………………………160 - 161
C-2a
Schedule of:
Deferred Charges to Future Taxation - Funded ………………………………
162
C-3
Deferred Charges to Future Taxation - Unfunded ……………………………
163
C-4
Grants Receivable ……………………………………………………………… 164
C-5
General Serial Bonds Payable …………………………………………………165 - 168
C-6
Fiscal Year Adjustment Bonds Payable ………………………………………
169
C-7
iii
CITY OF BAYONNE
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
DECEMBER 31, 2015
PAGE
EXHIBIT TABLE
SCHED.
Supplementary Data Section (continued):
General Capital Fund (continued)
Schedule of:
School Serial Bonds Payable ………………………………………………… 170 - 172
C-8
Green Trust Loans Payable ……………………………………………………173 - 174
C-9
Demolition Loan Payable ……………………………………………………… 175
C-10
General Bond Anticipation Notes Payable ……………………………………
176
C-11
School Promissory Notes Payable ……………………………………………
177
C-12
Improvement Authorizations …………………………………………………
178
C-13
Capital Improvement Fund ……………………………………………………
179
C-14
Reserve for Retirement of Debt ………………………………………………
180
C-15
Contracts Payable ……………………………………………………………… 180
C-16
Interfunds Receivable/(Payable) ………………………………………………
181
C-17
Bonds and Notes Authorized but not Issued …………………………………
182
C-18
Reserve for Veteran's Stadium Improvements…………………………………
183
C-19
Reserve for Debt Service - BLRA……………………………………………… 183
C-20
Parking Utility Fund
Schedule of:
Assets, Liabilities, Reserves and Fund Balance - Operating and Capital Funds184 - 185
D
Operations and Changes in Fund Balance - Operating…………………………
186
D-1
Fund Balance - Capital ………………………………………………………… 187
D-2
Revenues - Operating …………………………………………………………
188
D-3
Expenditures - Operating………………………………………………………189 - 190
D-4
Cash and Cash Equivalents - Operating and Capital …………………………
191
D-5
Analysis of Parking Utility Capital Cash and Cash Equivalents …………………
192
D-6
Schedule of:
Appropriation Reserves………………………………………………………… 193
D-7
Accrued Interest - Operating…………………………………………………… 194
D-8
Interfunds Payable - Operating…………………………………………………
195
D-9
Fixed Capital - Capital…………………………………………………………
196
D-10
iv
CITY OF BAYONNE
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
DECEMBER 31, 2015
PAGE
EXHIBIT TABLE
SCHED.
Supplementary Data Section (continued):
Parking Utility Fund (continued)
Fixed Capital Authorized and Uncompleted - Capital…………………………
197
D-11
Improvement Authorizations - Capital…………………………………………
198
D-12
Reserve for Amortization - Capital……………………………………………
199
D-13
Deferred Reserve for Amortization - Capital…………………………………
200
D-14
Parking Revenue Serial Bonds Payable - Capital………………………………
201
D-15
General Fixed Assets
Schedule of:
General Fixed Assets ………………………………………………………
202
E
Changes in General Fixed Assets by Class ………………………………… 203
E-1
Payroll Agency
Schedule of Assets and Liabilities ………………………………………………
204
F
Additional Information Relating to Internal Control and Compliance:
Independent Auditor's Report on Internal Control over Financial Reporting
and on Compliance and Other Matters based on an Audit of
Financial Statements Performed in Accordance with
Government Auditing Standards ……………………………………………205 - 207
Independent Auditor's Report on Compliance For Each Major Program
and on Internal Control Over Compliance Required by
Uniform Guidance …………………………………………………………208 - 211
Schedule of Expenditures of Federal Awards …………………………………212 - 214 ………………………
1
Schedule of Expenditures of State Financial Assistance ………………………215 - 217 ………………………
2
Schedule of Expenditures of Other Financial Assistance ………………………218 - 219………………………
3
Notes to Schedules of Expenditures of
Federal Awards and State Financial Assistance ……………………………220 - 221
Schedule of Findings and Questioned Costs
Section I - Summary of Auditor's Results …………………………………222 - 223
Section II - Schedule of Financial Statement Findings ……………………224 - 226
Section III - Schedule of Federal Awards and State Financial Assistance -
Findings and Questioned Costs …………………………………………227 - 233
Status of Prior Year Findings ………………………………………………234 - 237
v
CITY OF BAYONNE
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
DECEMBER 31, 2015
PAGE
EXHIBIT TABLE
SCHED.
Statistical Section: Unaudited
Ten-Year History of Governmental Expenditures ……………………………
238
…………
1
Ten-Year History of Governmental Realized Revenues ………………………
239
…………
2
Comparative Schedule of Operations and Changes in Fund Balance -
Current Fund ………………………………………………………………
240
…………
3
Ten-Year History of Tax Rate and Apportionment of Levies …………………
241
…………
4
Ten-Year History of Delinquent Taxes and Tax Title Liens …………………
241
…………
5
Ten-Year History of Tax Levies and Collections ……………………………… 242
…………
6
Ten-Year History of Property Acquired by Tax Title Lien Liquidation ………
242
…………
7
Ten-Year History of Percentage of
Net Assessed Valuation to Estimated Full Cash Valuation ………………
243
…………
8
Ten-Year History of Ratio of
Annual Debt Service to Operating Expenditures and Revenues …………
244
…………
9
Computation of Legal Debt Margin and Overlapping Debt
As of December 31, 2015 …………………………………………………
245
…………
10
Ten-Year History of Ratio of Bonded and Bondable Debt
to Equalized Value and Debt Per Capita …………………………………
246
…………
11
Ten-Year History of Unemployment Statistics ………………………………
247
…………
12
General Section
General Comments ……………………………………………………………248 - 253
Comments and Recommendations ……………………………………………254 - 256
vi
INTRODUCTORY SECTION
------------------------------------------------------------------------------- City of Bayonne
630 Avenue C, Bayonne, New Jersey, 07002
------------------------------------------------------------------------------Tel: 201-858-6043, Fax. 201-823-9825
TO: The Honorable Mayor and Members of the City Council
RE:
Comprehensive Annual Financial Report for the
Year Ended December 31, 2015
The Comprehensive Annual Financial Report for the City of Bayonne, Bayonne, New Jersey, (the
“City”) is submitted herewith and includes financial statements and supplementary schedules. We
believe it is accurate in all material respects, that it is presented in a manner designed to set forth fairly
the financial position and results of its operations of the City, as measured by the financial activity of its
various funds and accounts, and that all disclosures necessary to enable the reader to gain maximum
understanding of the City’s financial affairs have been included.
Organization of Report
The New Jersey Comprehensive Annual Financial Report (NJ-CAFR) is modeled on national standards
for the presentation of governmental financial information. The report is presented in several sections:
Introductory, Financial, Supplementary Data, Additional Information Relating to Internal Control and
Compliance, Statistical and General Section. Responsibility for completeness and clarity of the report,
including disclosures, rests with the Chief Financial Officer and ultimately with the Mayor and Council.
By adopting the NJ-CAFR format, it is the administration’s intent to facilitate an understanding by the
non-financially oriented citizen as well as provide all necessary information for the most sophisticated
financial observer.
The Introductory Section includes this transmittal letter and a list of principal officials. The Financial
Section includes the independent auditors’ report, combined financial statements, and the notes to
financial statements. To comply with regulatory filing requirements, the Supplementary Data Section
includes additional detailed schedules to supplement the basic financial statements. The Statistical
Section includes selected financial, economic and demographic information, generally presented on a
multi-year basis. The General Section includes general comments and recommendations.
1
Organization of Report (continued)
The City is required to undergo an annual single audit in conformity with the provisions of the Single
Audit Act of 1984, and as amended thereafter, the U.S. Office of Management and the Title 2 U.S. Code
of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance); and New Jersey OMB Circular 15-08,
Single Audit Policy for Recipients of Federal Grants, State Grants, and State Aid. Information related to
this single audit, including findings and recommendations, and reporting requirements under
Government Auditing Standards are included in the section of this report titled Additional Information
Relating to Internal Control and Compliance.
Governmental Structure
The City operates with an elected Mayor and Council under the Mayor and Council Form of
Government (Plan “C” of the Optional Municipal Charter Law). Officers and employees may be duly
appointed, pursuant to the provision of the State Charters or Ordinances of the City. The City is divided
into three wards, with a council person elected from each ward and the Mayor and two council persons
elected at-large by all voters in the City for respective terms in office of four years. The legislative
power of the City is vested in the City Council, which meets once every three weeks.
The Mayor has the power to approve ordinances adopted by the City Council or to return ordinances to
the Council with a statement of his objections. A two-thirds majority of the Council Members may
override the Mayor’s veto. The Mayor cannot vote in proceedings of the Council except to fill a
vacancy, in which case the Mayor may cast the deciding vote. The Mayor has the executive power and
is responsible for enforcing the charter, ordinances and general laws of the City, and supervising all City
departments. The Mayor appoints the directors of all departments with the advice and consent of the
Council.
Background
The City is situated on a peninsula bounded by water on three sides -- Newark Bay on the west; Upper
New York Bay (the entrance to the New York metropolitan area’s water front) on the east; and the Kill
Van Kull on the south, a narrow body of water which connects Newark and Upper New York Bays. The
City of Jersey City forms the City’s northern boundary.
Settled in March of 1646 as a resort center for people living in the interior parts of New Jersey and New
York State, Bayonne became a Township in 1861, and was incorporated as a City on March 10, 1869.
The City is 5.39 square miles in area (approximately three miles long and one mile wide, 2.5 miles wide
including the Peninsula at Bayonne Harbor, or approximately 3,450 acres of which 2,524 acres is
developed land area). Based on the 2010 US Census, it has a population of 63,024 residents.
The City’s location and availability of water frontage for loading and unloading waterborne freight and
residential use on the western side of the City provides a broad tax base for the City.
2
Background (continued)
The principal retail business and shopping areas are located along Broadway, a north to south
thoroughfare. Except for Broadway and J.F.K. Boulevard, the North to South thoroughfares are avenues
in alphabetical order, starting with Avenue A on the western side. Cross streets are in numerical order
from 1 to 63, with 63rd Street and the New Jersey Turnpike extension to the Holland Tunnel being
approximately the dividing line between the City and Jersey City. The City’s residential area
encompasses essentially the land between Avenue A and Avenue E from 1st Street to 58th Street, except
for the concentrated area of office and retail shops on Broadway and a few other small areas.
There are a number of historic landmarks in the City, including such edifices as: St. Mary’s Star of the
Sea Church, a mix of Victorian and Romanesque styles; the Bayonne Public Library, an example of
Classical Revival architecture; and St. Henry’s Church, a well preserved example of Gothic architecture.
Cultural activities include an art center at the Bayonne Jewish Community Center, the City-maintained
Firehouse Museum holding firefighting memorabilia and the Bayonne Historical Society. The ten civic
and fraternal groups, such as the Chamber of Commerce and the Bayonne Women’s Club, provide
forums for the exchange of ideas and camaraderie for those in business or over the age of eighteen.
Activities for younger people are sponsored by the Bayonne Family Community Center, the Bayonne
PAL, the Boy Scouts of America, the Bayonne Little League, the Cal Ripken League, Pop Warner
Football, Bayonne Youth Hockey, the Jewish Community Center, and the City through its thirteen
parks, fifteen playgrounds, and two County operated parks. For those people who play golf, facilities are
available on Staten Island or in Union and Middlesex Counties to the West within about thirty minutes
driving time. Private and miniature golf courses have been built in the City.
Cooperation among business and residents in civic, religious and fraternal endeavors is part of everyday
life in the City.
The Department of Public Safety, under supervision of Robert Kubert (commencing 7/1/14), consists of
the Police and Fire Departments.
The Police Department is under the supervision of Police Chief Drew Niekrasz (commencing 7/1/14).
The Police Department has 1 Chief, 2 Deputy Chiefs, 14 Captains, 15 Lieutenants, 37 Sergeants, 133
Uniformed Officers and 35 Civilians.
The Fire Department is under the supervision of Chief Gregory J. Rogers. Fire Department personnel
consist of 1 Chief, 2 Deputy Chiefs, 4 Battalion Chiefs, 42 Captains, 124 Uniformed Firemen, 3 full-
time civilians and 1 part-time civilian.
In addition to the public school system, the City offers its residents the services of one denominational
high school and two denominational schools for pre-high school students. Several private nursery
schools, day-care centers, recreation areas, a public library, and various houses of worship are located in
the City.
3
Background (continued)
Nearby higher educational facilities consist of St. Peter’s College, New Jersey City University and
Hudson County Community College in Jersey City, Stevens Institute of Technology in Hoboken, St.
John’s University in Staten Island and in Newark, Rutgers – The State University of New Jersey,
University of Medicine and Dentistry, New Jersey Institute of Technology and Seton Hall University
School of Law.
There are few homogeneous areas where single family residences exist, except for a four-block area
along Newark Bay, just south of the County’s Bayonne Park. The principal residential type of usage is
multi-family which includes two family houses primarily, three-to-four-family houses, row houses,
townhouses, garden apartments, and mid and high-rise apartments. Mid- and high-rise apartments are
only situated on isolated sites along the southern waterfront, the northwest section of the City, and
within urban renewal districts. Existing high-rise apartment structures are not considered a significant
residential land use.
The major commercial activity in the form of retail stores is concentrated along Broadway, a situation
that has not changed from the City’s early times. Some major commercial establishments exist on
Avenue C between 24th and 27th Streets, Avenue A and North Street, and Route 440. Office and
professional activity consists typically of medical or legal office space from converted single-family
residences.
There are shopping areas at each end of the City as well as a mixture of retail shops and services, and
professional and commercial offices along Broadway. Recently, the “Bayonne Crossing” Shopping
Center, anchored by Lowe’s Home Improvement and Wal-Mart and many other restaurants and retail
stores, opened as the largest shopping center in the area, with direct access from Route 440. Also on
440, an $18 million complex called “Winners”, billed as one of the nation's most elaborate off-track
wagering facilities, opened in 2012.The City also has a number of small and mid-size industries that
provide employment for area residents and enhances tax revenues for the City. Public transportation
through New Jersey Transit buses and other bus companies provide easy access within the area and to
New York City. The City is also serviced by the Hudson Bergen Light Rail System, with stops at 8th,
22nd, 34thand 45th Streets. Bayonne Crossing is also walking distance from the Light Rail.
There are four industrial districts plus the Peninsula at Bayonne Harbor located along the City’s eastern
and western waterfronts.
53rd Street District
This district encompasses approximately 19 acres in the northwest portion of the City along Newark
Bay, and is the newest district established. Presently, there are only six firms located in this district, two
of which are small manufacturing firms. There are six acres of vacant land in this district on which
development is constricted due to possible subsurface soil contamination.
4
Background (continued)
Bergen Point District
Located at the City’s southwest corner on Newark Bay and the Kill Van Kull, Bergen Point covers an
area of 138 acres. Firms in this district are comprised of smaller metals and chemical manufacturing
firms and light industry. Land for expansion of existing firms is limited,with the exception of 57 acre
Texaco Tract. Texaco has moved its facilities from Bayonne. Texaco has cleared and cleaned the area
under the guidance of ECRA prior to the sale of the 57 acres.
Port Jersey District
Located in the City’s northeast portion along the Jersey City borderline and Upper New York Bay, Port
Jersey encompasses 160 acres in the City of a total of 400 acres, the balance being in Jersey City. Of the
fourteen concerns located in Port Jersey, eleven are warehouse/distribution centers and include such
firms as Todd Logistics, Global Terminal & Container Services, Unimark, Workbench, BMW
Distributions and Preparation Center, and a New York and New Jersey Port Authority-operated
distribution center for foreign-made cars. Port Jersey is one of the major distribution centers in the New
Jersey and New York areas.
Constable Hook District
Located on Upper New York Bay along the City’s eastern/central waterfront, Constable Hook (the
“Hook”) encompasses roughly 727 acres, and is the largest and most heavily concentrated of all the
districts. However, approximately 87 acres in the upland area are currently vacant. The area north of
22nd Street is comprised of various warehouse/ distribution and light industrial firms. Within the Hook
are 55 firms, including such corporations as Exxon, Amerada Hess, IMTT and Coastal Oil.
Peninsula at Bayonne Harbor (formerly Military Ocean Terminal)
This former military facility is situated on 700 acres between the industrial districts of Port Jersey and
Constable Hook on Upper New York Bay. The Peninsula at Bayonne Harbor contains a causeway, an
artificial peninsula extending two miles into Upper New York Bay, with piers for ocean going vessels,
railroad tracks and roadways, a dry-dock over 1,000 feet long capable of handling any ship afloat,
storage facilities, various office-type buildings and residential buildings for military personnel and
families.
The military facility located on the peninsula has been closed. The City has established a Local
Redevelopment Authority (the “Authority”), which actively worked to convert the military base into a
viable commercial, residential and park development, until it was dissolved in June, 2013, at which date
such activities were taken over by the City Council.
In 2009, the first residential development at the Peninsula at Bayonne Harbor, Alexan City View,
opened its leasing office and welcomed its first residents. Trammell Cove Residential, the developer of
the brand new waterfront apartments within the Bayonne Bay District, has announced that it is now
5
Background (continued)
Peninsula at Bayonne Harbor (formerly Military Ocean Terminal) (continued)
leasing for residency. Alexan City View features a variety of amenities including a 9,000 square-foot
resident’s clubhouse with a fitness center, indoor basketball half court, gaming room and outdoor
swimming pool.
Additionally, at the Northeast corner of the Peninsula, Harbor View Park, a public park is located at the
northeast corridor of the Peninsula. The centerpiece of the park is the 100-foot tall monument to “the
struggle against terrorism” designed and donated by world renowned artist, ZurabTseretelli. The base of
the monument is engraved with names of the victims who perished in the September 11, 2001 attacks, as
well as the 1993 World Trade Center Attack. The park, which opened in the fall of 2006, is open to the
public from dawn to dusk.
Golf Course Development
A private, eighteen-hole golf course was constructed at the site of a former municipal landfill and
PSE&G property. The course was built on the eastside of the City and offer views of lower Manhattan.
The course was open in the spring of 2006.
Urban Enterprise Zone
In September of 2002 the City was designated an Urban Enterprise Zone by the State of New Jersey.
With this designation various retailers within the Zone are allowed to charge 3 ½ % sales tax as opposed
to the normal 7% sales tax rate. There are also various other benefits that accrue to members of the
Zone besides the sales tax advantage. There are currently over two hundred businesses that belong to
the Bayonne Urban Enterprise Zone.
Interstate, intrastate and inter-city public transportation is provided by New Jersey Department of
Transportation - Bus Operations and other bus companies.
The major highways serving the City from the north are State Route 440 (formerly Route 169), and the
New Jersey Turnpike Extension by egress and access ramps 14A. To the south, the Bayonne Bridge
over the Kill Van Kull to Staten Island provides connection to east/west Interstate Route 287 and to
Long Island via the Verrazano Narrows Bridge.
In addition to the New Jersey Turnpike Extension providing connections to north/south Interstate 95 and
U.S. Routes 1 and 9, State Route 440, a four-lane limited access highway parallel to Newark Bay,
provides a non-toll access across Newark Bay to U.S. Routes 1 and 9 and Interstate Route 95.
State Route 440 provides a connection to the industrial districts and the United States Military Ocean
Terminal located to the east on Upper New York Bay. State Route 440 has been expanded and
realigned as a four-lane divided highway, and extended to provide a connection with the Bayonne
Bridge. The realignment and extension of Route 440 eliminates the movement of freight over local
streets.
6
Background (continued)
In April, 2000, the first phase of the Hudson-Bergen light rail system began transporting commuters.
The light rail runs parallel on the west side of State Route 440, with three stations located at 22nd Street,
34th Street and 45th Street, running through Exchange Place in Jersey City and ending in Hoboken. The
extension from 22nd Street through 5th Street is currently in progress.
Movement of rail freight is by one rail line, which is the Conrail-owned Bayonne Industrial Track with
branch lines serving three industrial districts. The Bayonne Industrial Track is a single line track
running from the northeast corner of the City parallel to Upper New York Bay to the City’s southern
point along the Kill Van Kull. The rail line divides a portion of the residential section along the City’s
eastern and southern sides.
Electricity and gas is provided by Public Service Electric and Gas Co. Telephone service is provided for
by Verizon. Solid waste pickup is provided to residences, offices and retail stores by a contract with
Suburban Disposal Inc. Larger business concerns and corporations such as Exxon, IMTT and Bayonne
Medical Center must make their own provisions for the carting of solid waste. The water/sewer services
are provided by the Bayonne Municipal Utilities Authority, an Authority created by an ordinance of the
City, duly adopted October 9, 1997, and approved by the Mayor on October 10, 1997.
Parking Utility
Effective January 1, 2012, the Bayonne Parking Authority (the “BPA”) was officially dissolved and the
Bayonne Parking Utility was created. The Bayonne Parking Utility will be accounted for as a separate
Utility Fund on the books and records of the City. The City has determined to initially assume all of the
outstanding debt and obligations of the Parking Authority as a means of providing the City the
immediate ability to continue providing parking service while insuring the timely and efficient payment
of the obligations and debt of the BPA. The operations of the Utility will continue to be funded through
parking fees and ticket charges.
Reporting Period
The City has reverted to a calendar fiscal year from a state fiscal year period ending June 30, annually.
The City’s final state fiscal year reporting period ended June 30, 2011, and its first calendar year is
2012. The interim six month period, July 1, 2011 to December 31, 2011, wasknown as the City’s
“transition year”.
Financial Information
Accounting
The City maintains an on-line, real-time, computerized accounting system to record all financial
transactions.
7
Financial Information (continued)
Accounting
In developing and evaluating the City’s accounting system, consideration is given to the adequacy of
internal accounting controls. Internal accounting controls are designed to provide reasonable, but not
absolute, assurance regarding (1) the safeguarding of assets against loss from unauthorized use of
disposition, and (2) the reliability of financial records for preparing financial statements and maintaining
accountability for assets. The concept of reasonable assurance recognizes that the cost of controls
should not exceed benefits expected to be derived. All internal control evaluations occur within the
above framework. We believe the City’s internal accounting controls adequately safeguard assets and
provide reasonable assurance for the proper recording of financial transactions. Management of the City
is responsible for establishing and maintaining an adequate internal control structure.
Description of Funds
The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body
establishing governmental accounting and financial reporting principles. GASB Codification establishes
three fund types and two account groups to be used by general purpose governmental units when
reporting financial position and results of operations in accordance with accounting principles generally
accepted in the United States of America (GAAP).
The accounting policies of the City of Bayonne conform to the accounting principles and practices
prescribed by the Division of Local Government Services, Department of Community Affairs, State of
New Jersey (the Division). Such principles and practices are designed primarily for determining
compliance with legal provisions and budgetary restrictions, and as a means of reporting on the
stewardship of public officials with respect to public funds.
Under this method of accounting, the City accounts for its financial transactions through the following
separate funds, which differ from the fund structure required by GAAP.
Current Fund - is used to account for all revenues and expenditures for governmental
operations of a general nature, including federal and state grants.
Trust Fund - are used to account for receipts, custodianship and disbursement of funds
heldby the City in a trustee capacity or as an agent for individuals and other
governmental agencies.
General Capital Fund - receipt and disbursement of funds for the acquisition of general
capital facilities, other than those acquired in the current fund. General bonds and notes
payable are recorded in this fund offset by deferred charges to future taxation.
8
Financial Information (continued)
Description of Funds(continued)
Parking Utility Fund – is used to account for operations and acquisition of capital
facilities of the City owned Parking Utility. The Utility Operating Fund records revenues
and expenditures applicable to the general operation of the program to provide parking
management services in the City. The Utility Capital Fund is used to account for capital
acquisitions and improvements used to support the City’s parking management functions,
and the related debt issued to finance such acquisitions and improvements.
General Fixed Assets - is used to account for fixed assets required in general
governmental operations. This account group is not considered a fund.
Budgets and Budgetary Accounting - an annual budget is required to be adopted and
integrated into the accounting system to provide budgetary control over revenues and
expenditures. Budget amounts presented in the accompanying financial statements
represent amounts adopted by the City of Bayonne and approved by the State Division of
Local Government Services per N.J.S.A. 40:4 et seq.
Basis of Accounting
The accounting principles and practices prescribed for municipalities by the State of New Jersey differ
in certain respects from GAAP applicable to local government units. The more significant differences
are as follows:
Grant Revenues - Federal and State Grants, and entitlements of shared revenues received
for the purposes normally financed through the current fund are recognized when
anticipated in the City budget. Under GAAP,such revenues should berecognized in the
accounting period in which they become available and measurable. GAAP defines
available as collectible in the current period or soon enough thereafter to be used to pay
liabilities that are owed at the end of the accounting period. Also, under GAAP, grant
funds received before costs are incurred are deferred, and grant-related expenses incurred
in advance of receipt of grant funds result in the recording of receivable and revenue.
Property Taxes and Other Revenues- property taxes and other revenues are recognized on
a cash basis. Receivables for property taxes and other items are recorded with offsetting
reserves on the balance sheet of the City’s current fund. Under GAAP such receivables
should be recognized in the current accounting period if they are expected to be collected
in no more than 60 days following the end of the year.
9
Financial Information (continued)
Basis of Accounting (continued)
Expenditures - unexpended or uncommitted appropriations, at year end, are reported as
expenditures through the establishment of appropriation reserves unless canceled by the
governing body. Under GAAP, expenditures are usually recognized when the
governmental unit has received and becomes liable for payment of goods and services.
Also, under GAAP, interest cost is generally recognized as anexpenditure in the
accounting period in which it is due, rather than when it is incurred.
Appropriation Reserves - are available until lapsed at the close of the succeeding year to
meet specific claims, commitments or contracts incurred during the preceding year.
Lapsed appropriation reserves are recorded as additions to income. Appropriation
reserves are not established under GAAP.
Compensated Absences - expenditures relating to obligations for unused vested
accumulated vacation and sick pay are not recorded until paid. GAAP requires that the
amount that would normally be liquidated with expendable available financialresources
recorded as an expenditure in the operating funds and the remaining obligations recorded
as long-term obligations.
Encumbrances - contractual orders at year-end are reported as expenditures through the
establishment of a reserve for encumbrances. Encumbrances do not constitute
expenditures or liabilities under GAAP.
Property Acquired for Taxes-is recorded in the current fund at the assessed valuation
when such property was acquired and is fully reserved. GAAP requires such property to
be recorded in the general fixed assets account group at the lower of cost or fair-market
value.
Fixed Assets- Until 1985, property and equipment purchased by the current fund and the
capital fund were recorded as expenditures at the time of purchase. The accounting
principles and reporting requirements prescribed by the State of New Jersey were
modified, effective for financial statements dated December 31, 1985 and thereafter, to
require the inclusion of a statement of general fixed assets of the City as part of the basic
financial statements. In accordance with the State’s accounting directive, the City has
stated land and buildings acquired prior to January 1, 1986 at the most recent (1991) City
revaluation amounts. Machinery and equipment and other fixed assets acquired prior to
December 31, 1985 are stated at either historical cost, insurable value or current
replacement values as allowed by the State’s accounting directive. All general fixed
assets acquired beginning January 1, 1986 are valued at actual cost. Depreciation is not
recorded.
10
Financial Information (continued)
Basis of Accounting (continued)
Deferred Charges to Future Taxation Funded and Unfunded - Upon the authorization of
capital projects, the City establishes deferred charges for the costs of the capital projects
to be raised by future taxation. Funded deferred charges relate to permanent debt issued,
whereas unfunded deferred charges relate to temporary funding or non-funding of the
authorized cost of capital projects. According to N.J.S.A. 40A:2-4, the City may levy
taxes on all taxable property within the local unit to repay the debt. Annually, the City
raises the debt requirements for that particular year in the current budget. As the funds
are raised by taxation, the deferred charges are reduced.Under GAAP, no deferred
charges to future taxation funded or unfunded are set up when a capital project is
authorized.
Fixed Capital and Fixed Capital Authorized and Uncompleted– The full amount of an
authorized Utility Capital project or acquisition is recorded as Fixed Capital Authorized
and Uncompleted, until that time when the authorized funds are used to purchase the
acquisition or the capital project is completed, when it then is reclassified as Fixed
Capital.
Reserve for Amortization and Deferred Amortization – The funded amount of authorized
Utility Capital authorizations are recorded upon ordinance adoption as a Reserve for
Deferred Amortization. Principal payments on bonds or pay-downs on notes issued to
finance these authorizations are amortized to the reserve for amortization if the project is
completed or the deferred amortization if the project is not completed. Upon the
completion of capital projects or acquisition of capital assets authorized, the reserve for
deferred amortization is reclassified as reserve for amortization.
Interfunds- advances from the current fund are reported as interfund receivables with
offsetting reserves that are created by charges to operations. Income is recognized in the
year the receivables are liquidated. Interfund receivables in the other funds are not offset
by reserves. Under GAAP, interfund receivables are not recorded through operations.
Basic Financial Statements
The GASB Codification also defines the financial statements of a governmental unit to be presented in
the general-purpose financial statements to be in accordance with GAAP. The City presents the
financial statements listed in the table of contents which are required by the Division, and which differ
from the financial statements required by GAAP.
11
Budget
No municipal budget may be adopted or amended without the approval of the Director of the Division of
Local Government Services (the “Director”). The Director approves the budget once he has determined
the budget meets all the requirements of the Local Budget Law (N.J.S.A. 40A:4-1 et. seq.), and all the
regulations of the Board.
The Local Budget Law imposes various restrictions on the formulation of the Municipal Budget, the
more important of which pertain to anticipation of revenues and review of adequacy of appropriation.
Among other restrictions, the Local Budget Law requires that the budget be balanced and that the
Director examine the Budget with reference to all estimates of revenue and the following appropriations
(a) salaries and wages and other expenses of each office, department, institution, or other agency of the
City; (b) contingent expenses in an amount no more than 3% of operations; (c) payment of interest and
debt redemption charges; (d) deferred charges and statutory expenditures; (e) cash deficit of preceding
year; (f) other reserves and nondisbursement items deemed advisable by the Mayor and Council; and (g)
the payment of all judgments not for capital purposes and for which Notes or Bonds cannot be lawfully
issued.
Anticipated non-tax revenues of the municipality are limited to the amount actually realized the previous
year unless the Director authorizes a higher figure. Tax Anticipation Notes are limited in amount by law
and must be paid off in full within 120 days of the close of the fiscal year.
The Director has no authority over individual operating appropriations unless a specific amount is
required by law, but the review functions which focus on anticipated revenues serve to protect the
solvency of all local units. The Municipal Budget, by law and regulation of the Division, must be in
balance and is a “cash basis” budget.
Pursuant to the Local Budget Law, miscellaneous revenues shall include such amounts as may
reasonably be expected to be realized in cash during the fiscal year from known and regular sources, or
sources reasonably capable of anticipation and lawfully applicable to the appropriations made in the
budget.
The Local Budget Law further provides that no miscellaneous revenues from any source shall be
included as an anticipated revenue in the budget in an amount in excess of the amount actually realized
in cash, from the same source during the next preceding fiscal year, unless the Director shall determine
that the facts clearly warrant the expectation that such excess amount will actually be realized in cash
during the fiscal year and certified such determination to the local unit.
Property taxes cannot be anticipated in excess of amounts subject to the Tax Levy Cap Law noted
below. The maximum amount of delinquent taxes that may be anticipated is limited by statutory
formula, which allows the unit to anticipate collection at the same rate realized for the collection of
delinquent taxes in the previous year. Also, the local unit is required to make an appropriation for a
“reserve for uncollected taxes” in accordance with statutory formula to provide for a tax collection in an
12
Budget (continued)
amount that does not exceed the percentage of taxes levied and payable in the preceding fiscal year that
was received in cash by June 30 of that year. The budget also must provide for any cash deficits of the
prior year.
Emergency appropriations (those made after the adoption of the budget and the determination of the tax
rate) may be authorized by the governing body or a local unit. However, with minor exceptions, such
appropriations must be included in full in the following year’s budget.
Appropriation “CAPS”
A statute passed in 1977 as amended by N.J.S. 40A: 4-45.1a(commonly known as the “1977 Cap Law”),
imposed limitations on increases in the municipal appropriations subject to various exceptions. Pursuant
to N.J.S.A. 40A;40A;4-45.1a, the Director of the Division of Local Government Services must
promulgate the Cost of Living Adjustment (COLA) applicable to municipal and county budgets. The
COLA is based on the Implicit Price Deflator for State and Local Governments, calculated by the U.S.
Department of Commerce, Bureau of Economic Analysis. Under N.J.S.A. 40A-45.2, “municipalities and
counties shall be prohibited from increasing their final appropriations by more than2.5% unless action is
taken by the governing body to increase the cap to the statutorily permitted 3.5%”.
Tax Levy “CAPS”
In 2007 a statute was passed which stated that starting with Fiscal Year 2008 budgets, municipalities,
counties and fire districts tax levies are limited to a 4% increase. In 2010, the 2007 law was amended to
a 2% increase and modified exclusions There are several general exclusions; increases in debt service
and capital expenditures; weather and other ‘declared’ emergencies; pension contributions in excess of 2
% and limited by the increase in State Health Benefit rate increase.
Deferral of Current Expenses
Supplemental appropriations made after the adoption of the budget and determination of the tax rate
may be authorized by the Mayor and Council with the approval of the Director. However, with minor
exceptions, such appropriations must be included in full in the following year’s budget.
Budget Transfers
Budget transfers provide a degree of flexibility and afford a control mechanism. Transfers between
major appropriation accounts are prohibited until the last two months of the year and, although sub-
accounts within an appropriation are not subject to the same year-end transfer restrictions, they are
subject to internal review and approval.
13
Budget Process
Primary responsibility for the municipality’s budget process lies with the Mayor and the Council. As
prescribed by the Local Budget Law, adoption should occur by the end of August, however, extensions
may be granted by the Division to any local governmental unit. In the first quarter in which the budget
formulation is taking place, the municipality operates under a temporary budget which may not exceed
26.25% of the previous fiscal year’s adopted budget. Upon adoption of an annual operating budget by
the Mayor and the Council, the Board of Taxation computes a tax rate for municipal purposes. The tax
rate for each municipality includes municipal tax, local school requirements and county tax.
Cash Management
The City strives to keep abreast of current developments and procedures in cash management to insure
efficient and profitable use of available cash resources. Cash is deposited in institutions located in New
Jersey, which are insured by the Federal Deposit Insurance Corporation (FDIC), the Savings Association
Insurance Fund (SAIF) or by any other agency of the United States that insures deposits; and MBIA
Class Fund or the State of New Jersey Cash Management Fund, in accordance with state law. Funds not
immediately needed are invested as certificates of deposit on either of the aforementioned funds.
New Jersey Statues require public depositories to maintain collateral for deposits of public funds that
exceed insurance limits. All collateral must be deposited with the Federal Reserve Bank, the Federal
Home Loan Bank Board, or a banking institution that is a member of the Federal Reserve System and
has capital funds of not less than $25,000,000. The City has complied with all statutes and regulations
applicable to deposits and investments.
Risk Management
The City strives continually to evaluate its risk management policies, seeking to improve its safety and
loss control functions, claims management, insurance placement, and financing practices. In accordance
with a resolution dated August 17, 2011, the City authorized participation in and the execution of an
Indemnity and Trust Agreement with the New Jersey Intergovernmental Insurance Fund (the “NJIIF”)
for the provision of property and casualty insurance coverage. The NJIIF is a State-approved, self-
insured reinsured public entity insurance pool created in 1991 which offers New Jersey public entities
multiple lines of insurance.
Annual Independent Audit
The Local Fiscal Affairs Law, Chapter 5 of Title 40A of the New Jersey Statutes, regulates the non-
budgetary financial activities of the municipality. An annual audit for the City’s books, accounts and
financial transactions for the previous year must be performed by a licensed Registered Municipal
Accountant or by qualified employees of the Bureau of Financial Regulation and Assistance in the State
Department of Treasury. The accounting firm of Donohue, Gironda, Doria &Tomkins, LLC was
selected to fulfill this requirement, and a copy of the auditors’ report on the general-purpose financial
14
Annual Independent Audit (continued)
statements and combining individual fund statements and schedules, is included in the financial section
of this report. The audit, conforming to the Division’s “Requirements of Audit,” includes
recommendations for improvement of the City’s financial procedures and must be filed with the Director
of the Division, within six (6) months after the close of each fiscal year. The Clerk of the City must
publish a synopsis of the audit report, together with all recommendations made, in a local newspaper
within 30 days after receipt thereof.
Acknowledgments
The preparation of this report could not have been accomplished without the efficient and dedicated
efforts of the staff of the Finance Department and City Clerk’s Office, the auditors for the City and its
component units, and the cooperation of the various elected officials and appointed management. My
sincere appreciation is extended to each individual for the contributions made in the preparation of this
report.
Respectfully submitted,
Terrence Malloy
Chief Financial Officer
City of Bayonne
15
Amount
Name
Title
of Bond
James Davis
Mayor
Sharon Ashe-Nadrowski
Council President
Juan M. Perez
Council Member At-Large
Thomas Cotter
First Ward Council Member
Salvatore Gullace
Second Ward Council Member
Gary LaPelusa, Sr.
Third Ward Council Member
Joseph DeMarco
Business Administrator
Terrence Malloy
Municipal Controller and Chief Financial Officer
$150,000
Robert F. Sloan
City Clerk
JoAnne Sisk
Tax Collector
$320,000
Janet Convery
Treasurer / Comptroller
$150,000
Joseph G. Nichols
Tax Assessor
Robert Wondolowski
Municipal Services Department Director
Robert Kubert
Public Safety Director
Jay Coffey
Corporation Counsel
Frank T. Carpenter III
Presiding Municipal Court Judge
$150,000
Cheryl Scott Cashman
Municipal Court Judge
$150,000
Genevieve Michane
Court Administrator
Gregory J. Rogers
Fire Chief
Drew Niekrasz
Police Chief
Gary Chmielewski
Director of Public Works, Parks and Recreation
The City also carries the following coverage:
Government Crime - Employee Theft coverage of $1,000,000 per occurrence.
Public Entity Management Liability coverage, including Public Official’s Liability and Employment Practices Liability
coverages, in the amount of $3,000,000.
CITY OF BAYONNE
ROSTER OF OFFICIALS
December 31, 2015
Roster of Officials
16
FINANCIAL SECTION
DONOHUE, GIRONDA, DORIA & TOMKINS, LLC
Certified Public Accountants
310 Broadway
Bayonne, NJ 07002
(201) 437-9000
Fax: (201) 437-1432
E-Mail: dgd@dgdcpas.com
Matthew A. Donohue, CPA
Linda P. Kish, CPA, RMA
Robert A. Gironda, CPA
Mark W. Bednarz, CPA, RMA
Robert G. Doria, CPA (N.J. & N.Y.)
Jason R. Gironda, CPA
Frederick J. Tomkins, CPA, RMA
INDEPENDENT AUDITOR’S REPORT
The Honorable Mayor and Members
of the City Council
City of Bayonne, New Jersey
Report on the Financial Statements
We have audited the accompanying financial statements – regulatory basis of the City of Bayonne, New
Jersey (the “City”), which comprise the combined balance sheets – regulatory basis, of each fund and
account group as of December 31, 2015 (with comparative totals as of December 31, 2014), the related
statement of revenues, expenditures and changes in fund balance – regulatory basis, of the Current Fund,
General Capital Fund and Parking Utility Operating and Capital Funds, for the year ended December 31,
2015 (with comparative totals for the year ended December 31, 2014), and the related statement of
revenues, expenditures and changes in fund balance – regulatory basis – budget and actual, of the
Current Fund and Parking Utility Operating Fund for the year ended December 31, 2015 (with
comparative totals for the year ended December 31, 2014), and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed in the table of
contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with the financial reporting provisions of the Division of Local Government Services,
Department of Community Affairs, State of New Jersey (the “Division”). Management is also
responsible for the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to error or fraud.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America, audit requirements prescribed by the Division and the standards applicable to the financial
audits contained in Government Auditing Standards issued by the Comptroller General of the United
States. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
17
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the City’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note A, the financial statements are prepared by the City on the basis of the financial
reporting provisions of the Division, which is a basis of accounting other than accounting principles
generally accepted in the United States of America, to comply with the requirements of the Division.
The effects on the financial statements of the variances between the regulatory basis of accounting
described in Note A and accounting principles generally accepted in the United States of America,
although not reasonably determinable, are presumed to be material.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the “Basis for Adverse Opinion on
U.S. Generally Accepted Accounting Principles” paragraph, the financial statements referred to in the
first paragraph do not present fairly, in accordance with accounting principles generally accepted in the
United States of America, the financial position of the City as of December 31, 2015 (with comparative
totals as of December 31, 2014), or the changes in its financial position for the years then ended.
Opinion on Regulatory Basis Accounting
In our opinion, the financial statements referred to in the first paragraph present fairly, in all material
respects, the financial position – regulatory basis, of each fund and account group of the City as of
December 31, 2015 (with comparative totals as of December 31, 2014), and each fund’s respective
revenues, expenditures and changes in fund balance – regulatory basis, and revenues, expenditures and
changes in fund balance – regulatory basis – budget and actual, for the years then ended, on the basis of
the financial reporting provisions of the Division as described in Note A.
18
Emphasis of Matter Regarding One-Time Revenues
The City has relied on many one-time revenues and structural imbalance offsets to balance their budget.
It is anticipated that sales of other properties will replace these sources in future years.
Other Matters
Management’s Discussion and Analysis
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis on pages 21 through 28 be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in appropriate operational, economic, or historical
context. This information is not required by the financial reporting provisions of the Division as
described in Note A, however, it is allowable under the Division’s optional New Jersey Comprehensive
Annual Financial Report (NJ-CAFR) reporting format. We have applied certain limited procedures to
the management’s discussion and analysis in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s response
to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The introductory section, statistical section,
schedule of expenditures of state financial assistance and schedule of expenditures of other financial
assistance are presented for purposes of additional analysis and are not a required part of the basic
financial statements. The supplementary data section and general section are presented for purposes of
additional analysis as required by the Division. The schedule of expenditures of federal awards and the
schedule of expenditures of state financial assistance are presented for purposes of additional analysis as
required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards and N.J. Office of
Management and Budget Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State
Grants and State Aid, respectively. The supplementary data section, general comments, comments and
recommendations, schedule of expenditures of federal awards and schedule of expenditures of state
financial assistance are also presented for purposes of additional analysis and are not required parts of
the basic financial statements.
19
The supplementary data section, general comments, comments and recommendations, schedule of
expenditures of federal awards and the schedule of expenditures of state financial assistance are the
responsibility of management and were derived from and relate directly to the underlying accounting
and other records used to prepare the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the supplementary data section, general comments,
comments and recommendations, schedule of expenditures of federal awards and the schedule of
expenditures of state financial assistance are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
The statistical section and schedule of expenditures of other financial assistance have not been subjected
to the auditing procedures as applied in the audit of the basic financial statements and, accordingly, we
do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 30,
2017, on our consideration of the City’s internal control over financial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City’s internal control
over financial reporting and compliance.
DONOHUE, GIRONDA,
DORIA & TOMKINS, LLC
Certified Public Accountants
FREDERICK J. TOMKINS
Registered Municipal Accountant #327
Bayonne, New Jersey
January 30, 2017
20
MANAGEMENT’S DISCUSSION
AND ANALYSIS
CITY OF BAYONNE
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED DECEMBER 31, 2015
(UNAUDITED)
This discussion and analysis of the financial performance of the City of Bayonne provides an overall
review of the City’s financial activities for the year ended December 31, 2015. The intent of this
discussion and analysis is to look at the City’s financial performance as a whole. Readers should also
review the basic financial statements and notes to enhance their understanding of the City’s financial
performance.
OVERVIEW OF THE FINANCIAL STATEMENTS
The City uses accounting practices as prescribed by the State of New Jersey, Division of Local
Government Services which defines the financial statements of a governmental unit to be presented on a
modified accrual basis of accounting. The following financial statements offer financial information
about the activities and operations of the City.
FINANCIAL HIGHLIGHTS
Key financial highlights for the year ended December 31, 2015 and 2014 are as follows:
Fund balance in the Current Fund was $5,280,007 and $5,067,253, respectively, as of December
31, 2015 and 2014. The City’s Current Fund operations resulted in a net increase to fund
balance of $212,754 for the year ended December 31, 2015 and a net decrease to fund balance of
$11,414,090 for the year ended December 31, 2014.
Total realized revenues and credits to income to the City’s Current Fund amounted to
$230,677,898 for the year ended December 31, 2015 and $246,851,442 for the year ended
December 31, 2014. Net of County, School and Special Improvement District taxes collected
and non-revenue credits to income, realized revenues to the Current Fund amounted to
$134,569,339 for the year ended December 31, 2015 and $155,850,257 for the year ended
December 31, 2014.
Budgeted Current Fund appropriations, net of cancellations, for the year ended December 31,
2015 and 2014 were $132,101,057 and $151,456,260, respectively. During the current year,
appropriations that were not paid or charged and which remained from the adopted budget of the
year ended December 31, 2014 lapsed to operations in the amount of $2,247,007. Unexpended
budget appropriations from the budget of the year ended December 31, 2015 will not lapse to
operations until the year ended December 31, 2016, but are set aside in the current year as
appropriation reserves in the amount of $2,304,820.
21
CITY OF BAYONNE
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED DECEMBER 31, 2015
(UNAUDITED)
FINANCIAL HIGHLIGHTS (continued)
Included in the budgeted, or anticipated, revenues for the year ended December 31, 2015 and
2014 is the amount to be raised by taxation in support of the municipal budget in the amounts of
$80,628,755 and $78,385,996, respectively. In addition to the support of the local municipal
budget, the City collected and was obligated to remit the following taxes to the appropriate
agencies, as per the Hudson County Board of Taxation Abstract of Ratables and Taxes Added or
Omitted for the year ended December 31, 2015 and 2014: local school district taxes in the
amount of $60,283,361 and $59,392,474, respectively, County of Hudson taxes in the amount of
$28,73,549 and $27,696,235, respectively and Special Improvement District taxes in the amount
of $290,000 each year.
On January 1, 2012, the City added the Parking Utility Fund to the books and records of the City.
Prior to this date, the entity operated as a separate corporate body named the Bayonne Parking
Authority. Parking Utility Operating Fund balance at December 31, 2015 and 2014 was
$586,268 and $560,530, respectively, an increase of $25,738 and $114,309, respectively.
During the year ended December 31, 2015, the City’s Parking Utility Operating Fund realized
total revenues of $1,594,930, or $1,594,930 net of non-revenue credits to income.
Budgeted Parking Utility Operating Fund appropriations, net of cancellations, for the year ended
December 31, 2015 was $1,376,750. During the current year, appropriations that were not paid
or charged and which remained from the adopted budget of the year ended December 31, 2013
lapsed to operations in the amount of $106,548. As the Bayonne Parking Authority, records
were maintained on accounting principles generally accepted in the United States of America
therefore no appropriation reserves were maintained. Unexpended budget appropriations from
the budget of the year ended December 31, 2015 will not lapse to operations until the year ended
December 31, 2016, but are set aside in the current year as appropriation reserves in the amount
of $127,178.
22
CITY OF BAYONNE
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED DECEMBER 31, 2015
(UNAUDITED)
BASIC FINANCIAL STATEMENTS
The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for
establishing governmental accounting and financial reporting principles and defines the financial
statements of a governmental unit to be presented in accordance with accounting principles generally
accepted in the United States of America (GAAP). The City presents the financial statements listed in
the table of contents which are required by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey, herein referred to as the “Division”, and which differ from the
financial statements required by GAAP. A description of funds and basis of accounting, including
differences as compared to GAAP, can be found in Note A of the Notes to Financial Statements.
FINANCIAL POSITION AS A WHOLE
The following table is a summary of the assets, liabilities, reserves and fund balance for all funds of the
City for the year ended December 31, 2015 and 2014:
2015
2014
2015
2014
2015
2014
2015
2014
Assets:
Cash and Cash Equivalents
22,098,339
$
18,325,057
$
8,477,803
$
8,366,521
$
3,959,239
$
17,987,233
$
1,797,859
$
1,876,548
$
Taxes and Liens Receivable
1,402,912
1,459,391
-
-
-
-
-
-
Property Acquired for Taxes
at Assessed Valuation
6,474,000
6,474,000
-
-
-
-
-
-
Grants and Other
Intergovernmental Receivables
8,924,326
24,734,048
3,818,944
3,701,753
2,344,217
1,219,217
-
-
Other Receivables
2,613,632
4,892,019
-
-
-
353,734
431,807
451,836
Unamortized Debt Issuance
-
-
-
-
-
-
-
-
Deferred Charges
202,391
257,036
-
-
255,746,439
268,642,610
-
-
Fixed Capital
-
-
-
-
-
-
5,354,861
5,354,861
Fixed Capital Authorized and Uncompleted
-
-
-
-
-
-
1,445,483
1,445,483
Total Assets
41,715,600
$
56,141,551
$
12,296,747
$
12,068,274
$
262,049,895
$
288,202,794
$
9,030,010
$
9,128,728
$
Liabilities, Reserves and Fund Balance:
Bonds, Notes and Loans Payable
-
$
-
$
-
$
-
$
248,696,693
$
261,542,750
$
2,855,000
$
3,020,000
$
Other Liabilities and Special Funds
27,643,276
39,677,732
12,296,747
12,068,274
3,395,474
17,625,693
1,389,500
1,353,757
Improvement Authorizations
-
-
-
-
9,784,133
8,860,756
253,891
414,090
Reserve for Certain Receivables
8,792,317
11,396,566
-
-
-
-
-
-
Reserve for Amortization
-
-
-
-
2,499,861
2,334,861
Reserve for Deferred Amortization
-
-
-
-
1,445,483
1,445,483
Fund Balance
5,280,007
5,067,253
-
-
173,595
173,595
586,275
560,537
Total Liabilities, Reserves and Fund Balance
41,715,600
$
56,141,551
$
12,296,747
$
12,068,274
$
262,049,895
$
288,202,794
$
9,030,010
$
9,128,728
$
Bonds and Notes Authorized But Not Issued
$ 7,049,746
$ 7,099,860
(Combined Operating and Capital)
Current Fund
(incl. State & Fed Grant Fund)
Trust Fund
General Capital Fund
Parking Utility Fund
23
CITY OF BAYONNE
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED DECEMBER 31, 2015
(UNAUDITED)
FINANCIAL POSITION AS A WHOLE (continued)
In addition to the funds noted in the chart on the preceding page, the City maintains a separate
accounting of fixed assets in accordance with accounting practices prescribed by the Division. As of
December 31, 2015 and 2014, the City has fixed assets, recorded at historical cost, of $202,345,502 and
$202,345,502, respectively. See Note O for more detail.
CURRENT FUND FINANCIAL ANALYSIS
2015
2014
Dollar
General Government
30,283,410
$
31,506,681
$
(1,223,271)
$
(3.9) %
Sanitation, Health and Welfare
6,502,239
6,719,000
(216,761)
(3.2)
Public Safety
43,866,270
44,238,550
(372,280)
(0.8)
Public Works, Parks and Recreation
9,143,240
8,992,500
150,740
1.7
Contingent, Deferred Charges & Statutory
14,201,145
13,718,650
482,495
3.5
Shared Service Agreements
120,000
120,000
-
0.0
Public and Private Programs
2,471,953
20,197,439
(17,725,486)
(87.8)
Other Special Items
60,202
65,860
(5,658)
(8.6)
Capital Improvements
-
200,000
(200,000)
(100.0)
Debt Service
22,852,598
22,977,580
(124,982)
(0.5)
Reserve for Uncollected Taxes
2,600,000
2,720,000
(120,000)
(4.4)
Total Budgeted Appropriations
132,101,057
151,456,260
(19,355,203)
(12.8)
Non-Budget Expenditures
2,637,005
4,530,563
(1,893,558)
(41.8)
Total Expenditures and Charges
134,738,062
$
155,986,823
$
(21,248,761)
$
(13.6)
Percentage
Year Ended December 31,
Current Fund Expenditures and Charges by Function
Change Increase (Decrease)
Significant changes from the prior year, as identified above, are as follows:
Public and private programs decreased due to TIGER grant, Port Authority Grant and EDA
grants received during 2014.
Capital improvement fund decreased due to management decisions of the City.
24
CITY OF BAYONNE
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED DECEMBER 31, 2015
(UNAUDITED)
CURRENT FUND FINANCIAL ANALYSIS (continued)
2015
2014
Dollar
Budgeted Operating Revenues:
Fund Balance
6,421,172
$
14,900,000
$
(8,478,828)
$
(56.9) %
Local Revenues
10,374,610
10,286,681
87,929
0.9
State Aid
8,829,801
9,032,464
(202,663)
(2.2)
Shared Service Agreements
-
120,000
(120,000)
(100.0)
Public and Private Programs
2,186,618
19,715,136
(17,528,518)
(88.9)
Other Special Items
22,197,506
19,505,006
2,692,500
13.8
Delinquent Taxes
40,182
68,683
(28,501)
(41.5)
Local Tax for Municipal Purposes
82,393,735
79,952,344
2,441,391
3.1
Subtotal
132,443,624
153,580,314
(21,136,690)
(13.8)
Non-Budget Revenues
2,125,715
2,269,943
(144,228)
(6.4)
Total Realized Revenues
134,569,339
155,850,257
(21,280,918)
Other Credits to Income
4,555,642
2,387,930
2,167,712
90.8
Lapsed Appropriation Reserves
2,247,007
1,234,546
1,012,461
82.0
Total Realized Revenues and
Other Credits to Income
141,371,988
$
159,472,733
$
(18,100,745)
$
(11.4)
Current Fund Realized Revenues and Other Credits to Income by Source
Year Ended December 31,
Percentage
Change Increase (Decrease)
Significant changes from the prior year, as identified above, are as follows:
Fund Balance decreased due to management decisions of the City.
Public and private programs decreased due to TIGER grant, Port Authority Grant and EDA
grants received during 2014.
Delinquent taxes decreased due to less prior year taxes outstanding.
Other credits to income decreased due to less interfunds returned during 2015.
Lapsed appropriation reserves increased due to a higher balance reserved from the 2014 budget.
25
CITY OF BAYONNE
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED DECEMBER 31, 2015
(UNAUDITED)
CURRENT FUND FINANCIAL ANALYSIS (continued)
A summary of the result of operations in the Current Fund, per the revenue and expenditure tables
preceding, is as follows:
Total Revenues
141,371,988
$
Less: Fund Balance Utilized as Budget Revenues
6,421,172
Total Revenues, Net of Fund Balance Utilized
134,950,816
Less: Total Expenditures and Charges
134,738,062
Results of Current Year Operations
212,754
Add: Emergencies to be Raised in Future Budgets
-
Fund Balance at December 31, 2014
5,067,253
Fund Balance at December 31, 2015
5,280,007
$
Results of Current Fund Operations
ANALYSIS OF BUDGET VS. ACTUAL
The following table represents revenues anticipated and budgeted appropriations for the year ended
December 31, 2015, as well as the actual results for all items budgeted. Non-budgeted revenues and
expenditures are not included on the following table.
Budgeted
Actual
Variance
Budgeted Approriations:
Operations within "CAPS"
102,126,190
$
99,869,576
$
2,256,614
$
Operations excluded from "CAPS"
Other Operations
1,820,000
1,773,778
46,222
Shared Service Agreements
120,000
120,000
-
Public and Private Programs
2,532,155
2,530,171
1,984
Debt Service
23,162,030
22,852,598
309,432
Deferred Charges
50,114
50,114
-
Reserve for Uncollected Taxes
2,600,000
2,600,000
-
132,410,489
$
129,796,237
$
2,614,252
$
Appropriations Cancelled
309,432
-
309,432
132,101,057
$
129,796,237
$
2,304,820
$
(1)
Comparison of Budget vs. Actual
The item noted as “(1)” in the above budget table represent amounts “reserved”, or budgeted
appropriations that will be available for expenditure in 2016.
26
CITY OF BAYONNE
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED DECEMBER 31, 2015
(UNAUDITED)
ANALYSIS OF BUDGET VS. ACTUAL (continued)
Budgeted
Actual
Variance
Anticipated Revenues:
Fund Balance Utilized
6,421,172
$
6,421,172
$
-
$
Miscellaneous Revenue Anticipated
45,150,562
43,588,535
(1,562,027)
Receipts from Delinquent Taxes
210,000
40,182
(169,818)
Local Tax for Municipal Purposes
80,628,755
82,393,735
1,764,980
Total Anticipated Revenues
132,410,489
$
132,443,624
$
33,135
$
Comparison of Budget vs. Actual
Miscellaneous revenue collections exceeded amounts anticipated by $33,135. Local revenues were
under-budgeted by $94,681 and other special items realized were under-budgeted by $1,347,346.
Collections of current taxes exceeded budgeted amounts by $1,764,980
MUNICIPAL DEBT ADMINISTRATION
The following table summarizes the changes in capital debt for the year ending December 31, 2015:
2015
Debt Issued and Outstanding
251,551,693
$
Authorized but not Issued
7,049,746
Total Debt Issued and
Authorized but not Issued
258,601,439
$
The City’s outstanding debt consists of Bond Anticipation Notes of $58,020,000, General Capital Bonds
of $114,853,257, School Bonds of $75,496,174, Parking Revenue Bonds of $2,855,000, Green Trust
Loans of $226,791 and Demolition Loans of $100,471. All such debt is described in further detail in
Note D of the notes to financial statements.
The City did not have any Tax Anticipation Notes outstanding at December 31, 2015. This
classification of debt does not affect the City’s available Debt Margin.
27
CITY OF BAYONNE
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED DECEMBER 31, 2015
(UNAUDITED)
MUNICIPAL DEBT ADMINISTRATION (continued)
In addition, the City still has on its books debt authorized but not issued of $7,049,746. The purpose of
these authorizations are for various purposes, including fiscal year adjustment bonds, school
improvements and refunding bonds, acquisition of land, refunding tax appeals, demolition of unsafe
buildings, various capital improvements and the dissolution of the BLRA.
COMPONENT UNITS
Had this report been prepared in conformity with GAAP, the financial statements of the Bayonne Board
of Education, Bayonne Housing Authority and Bayonne Municipal Utilities Authority would have been
discretely presented with the financial statements of the City, the primary government or oversight
entity. These financial statements are prepared in accordance with accounting practices as prescribed by
the Division and, accordingly, do not include the financial statements of its component units.
CONTACTING THE CITY’S CHIEF FINANCIAL OFFICER
This financial report is designed to provide the citizens and taxpayers of the City of Bayonne with a
general overview of the City’s finances and to demonstrate the City’s accountability for the
appropriations it budgets and grants, state aid and taxes levied that it receives. If you have any questions
about this report or need additional information, you may contact the Chief Financial Officer at 630
Avenue C, Bayonne, New Jersey, 07002 or at (201) 858-6047.
28
BASIC FINANCIAL STATEMENTS
CITY OF BAYONNE
ALL FUND TYPES AND ACCOUNT GROUPS
AS OF DECEMBER 31, 2015
(WITH COMPARATIVE TOTALS AS OF DECEMBER 31, 2014)
Federal and
General
General
Current
State Grants
Trust
Capital
Fixed
December 31,
December 31,
Fund
Fund
Funds (1)
Fund
Assets
Operating
Capital
2015
2014
Assets:
Cash and Cash Equivalents
22,098,339
$
-
$
8,477,803
$
3,959,239
$
-
$
1,190,250
$
607,609
$
36,333,240
$
46,555,359
$
Intergovernmental Receivables
2,888,631
-
-
-
-
-
-
2,888,631
3,558,976
Grants Receivable
-
6,035,695
3,803,213
2,344,217
-
-
-
12,183,125
26,096,042
Interfunds Receivable (Unreserved)
-
1,698,227
15,731
-
-
-
431,807
2,145,765
2,234,414
Receivables with Full Reserves:
Delinquent Property Taxes
748,057
-
-
-
-
-
-
748,057
841,686
Tax Title Liens
654,855
-
-
-
-
-
-
654,855
617,705
Property Acquired for Taxes
at Assessed Valuation
6,474,000
-
-
-
-
-
-
6,474,000
6,474,000
Revenue Accounts Receivable
789,415
-
-
-
-
-
-
789,415
2,147,315
Interfunds Receivable
125,990
-
-
-
-
-
-
125,990
698,155
Other Receivables
-
-
-
-
-
-
-
-
617,705
Deferred Charges
202,391
-
-
255,746,439
-
-
-
255,948,830
268,899,646
Fixed Capital
-
-
-
-
-
-
5,354,861
5,354,861
5,354,861
Fixed Capital Authorized and Uncompleted
-
-
-
-
-
-
1,445,483
1,445,483
1,445,483
Fixed Assets:
Land
-
-
-
-
165,984,900
-
-
165,984,900
165,984,900
Building
-
-
-
-
10,233,265
-
-
10,233,265
10,233,265
Improvements
-
-
-
-
4,817,988
-
-
4,817,988
4,817,988
Machinery, Equipment and Other
-
-
-
-
21,309,349
-
-
21,309,349
21,309,349
Total Assets
33,981,678
$
7,733,922
$
12,296,747
$
262,049,895
$
202,345,502
$
1,190,250
$
7,839,760
$
527,437,754
$
567,886,849
$
(1) Includes Animal Control Fund, Insurance Trust Fund, Tax Lien Redemption Fund, Housing and Urban Development Grant Fund and Other Trust Funds.
Compartive Totals
COMBINED BALANCE SHEETS - REGULATORY BASIS
(Memorandum Only)
Parking Utility Fund
See Accompanying Notes to Financial Statements
29
CITY OF BAYONNE
ALL FUND TYPES AND ACCOUNT GROUPS
AS OF DECEMBER 31, 2015
(WITH COMPARATIVE TOTALS AS OF DECEMBER 31, 2014)
Federal and
General
General
Current
State Grants
Trust
Capital
Fixed
December 31,
December 31,
Fund
Fund
Funds (1)
Fund
Assets
Operating
Capital
2015
2014
Compartive Totals
COMBINED BALANCE SHEETS - REGULATORY BASIS
(Memorandum Only)
Parking Utility Fund
Liabilities, Reserves and Fund Balance:
Current Liabilities and Reserves:
Notes Payable
-
$
-
$
-
$
58,020,000
$
-
$
-
$
-
$
58,020,000
$
90,435,000
$
Bonds Payable - Current Portion
-
-
-
9,000,133
-
-
195,000
9,195,133
8,090,903
Loans Payable - Current Portion
-
-
-
120,620
-
-
-
120,620
137,961
Prepaid Taxes, PILOTS and Overpayments
3,726,478
-
-
-
-
-
-
3,726,478
3,568,244
Contracts and Accounts Payable
688,623
-
75,519
1,461,135
-
-
-
2,225,277
633,879
Cash Overdraft
-
-
-
-
-
-
-
-
19,015
Intergovernmental Payables:
Bayonne Board of Education
-
-
-
-
-
-
450,000
450,000
450,000
State of New Jersey
22,222
-
35,898
-
-
-
-
58,120
67,147
Other Payables and Accruals
-
-
-
-
-
44,646
-
44,646
6,787
Taxes Payable:
County of Hudson
23,387
-
-
-
-
-
-
23,387
13,153
Special Improvement Districts
494,558
-
-
-
-
-
-
494,558
253,388
Interfunds Payable
1,714,098
-
28,535
97,121
-
432,100
-
2,271,854
3,424,031
Appropriation Reserves
2,304,820
-
-
-
-
127,178
-
2,431,998
2,394,015
Improvement Authorizations
-
-
-
9,784,133
-
-
253,891
10,038,024
9,613,522
Reserve for:
Encumbrances
1,582,091
229,428
-
-
-
58
-
1,811,577
1,729,174
Other Expenditures
9,353,077
-
8,297,827
1,837,218
-
-
335,518
19,823,640
34,403,066
Grant Expenditures
-
7,504,494
3,858,968
-
-
-
-
11,363,462
13,957,046
Retirement of Debt
-
-
-
-
-
-
-
-
626,596
Receivables and Other Assets
8,792,317
-
-
-
-
-
-
8,792,317
10,060,097
Noncurrent Liabilities:
Loans Payable
-
-
-
206,642
-
-
-
206,642
466,716
Bonds Payable
-
-
-
181,349,298
-
-
2,660,000
184,009,298
185,080,520
Total Liabilities and Reserves
28,701,671
7,733,922
12,296,747
261,876,300
-
603,982
3,894,409
315,107,031
365,430,260
Reserve for Amortization
-
-
-
-
-
-
2,499,861
2,499,861
2,174,861
Reserve for Deferred Amortization
-
-
-
-
-
-
1,445,483
1,445,483
1,445,483
Investments in Fixed Assets
-
-
-
-
202,345,502
-
-
202,345,502
201,818,719
Fund Balance
5,280,007
-
-
173,595
-
586,268
7
6,039,877
17,100,523
Total Liabilities, Reserves and Fund Balance
33,981,678
$
7,733,922
$
12,296,747
$
262,049,895
$
202,345,502
$
1,190,250
$
7,839,760
$
527,437,754
$
587,969,846
$
Bonds and Notes Authorized But Not Issued
$ 7,049,746
$ 9,349,860
(1) Includes Animal Control Fund, Insurance Trust Fund, Tax Lien Redemption Fund, Housing and Urban Development Grant Fund and Other Trust Funds.
See Accompanying Notes to Financial Statements
30
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Revenue and Other Income Realized
Fund Balance Utilized
6,421,172
$
14,900,000
$
-
$
-
$
120,000
$
70,000
$
-
$
-
$
Miscellaneous Revenues Anticipated
43,588,535
58,659,287
-
-
1,331,242
1,266,121
-
-
Receipts from Delinquent Taxes
40,182
68,683
-
-
-
-
-
-
Receipts from Current Taxes
171,699,645
167,331,053
-
-
-
-
-
-
Non-Budget Revenues
2,125,715
2,269,943
-
-
-
-
-
-
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
2,247,007
1,234,546
-
-
-
-
-
-
Grant Appropriations Cancelled
4,183,887
-
Premium on Issuance of Debt
-
-
-
643
-
-
-
-
Prior Year Receivables Realized
-
2,233,732
-
-
-
-
-
-
Prior Year Interfunds Returned
51,182
125,564
-
-
-
-
-
-
Other Credits to Income
320,573
28,634
-
-
109,600
143,688
-
-
230,677,898
246,851,442
-
643
1,560,842
1,479,809
-
-
Expenditures
Budget and Emergency Appropriations:
Operations:
Salaries and Wages
55,946,525
$
56,183,500
$
-
$
-
$
635,000
$
620,000
$
-
$
-
$
Other Expenses
32,028,634
31,947,996
-
-
641,750
579,500
-
-
Deferred Charges & Statutory Expenditures
14,151,031
13,168,650
-
-
100,000
96,000
-
-
Appropriations excluded from "CAP"
Operations:
Salaries and Wages
639,244
712,578
-
-
-
-
-
-
Other Expenses
3,832,911
22,995,956
-
-
-
-
-
-
Capital Improvements
-
200,000
-
-
-
-
-
-
Debt Service
22,854,067
22,977,580
-
-
-
-
-
-
Deferred Chages
50,114
550,000
-
-
-
-
-
-
Reserve for Uncollected Taxes
2,600,000
2,720,000
-
-
-
-
-
-
Special District Taxes
290,000
290,000
-
-
-
-
-
-
Parking Utility Fund
Operating
Capital
CITY OF BAYONNE
ALL FUND TYPES AND ACCOUNT GROUPS
FOR THE YEAR ENDED DECEMBER 31, 2015
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2014)
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
- REGULATORY BASIS
General Capital Fund
Current Fund
See Accompanying Notes to Financial Statements
31
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Parking Utility Fund
Operating
Capital
CITY OF BAYONNE
ALL FUND TYPES AND ACCOUNT GROUPS
FOR THE YEAR ENDED DECEMBER 31, 2015
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2014)
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
- REGULATORY BASIS
General Capital Fund
Current Fund
Expenditures (continued)
County Taxes
28,709,162
$
27,601,355
$
-
$
-
$
-
$
-
$
-
$
-
$
Amount Due County for Added and Omitted Taxes
23,387
94,880
-
-
-
-
-
-
Local District School Tax
60,283,361
59,392,474
-
-
-
-
-
-
Interfund Advances
109,731
698,155
-
-
-
-
-
-
Revenue Accounts Receivable Reserved
-
2,147,315
-
-
-
-
-
-
Refund of Prior Year Revenues
-
-
-
-
-
-
-
-
Refund of Prior Year Taxes
1,425,763
-
-
-
-
-
-
-
Appropriated Grants Receivable Cancelled
1,100,042
-
-
-
-
-
-
-
Other Charges to Income
-
1,685,093
-
-
-
-
-
-
224,043,972
243,365,532
-
-
1,376,750
1,295,500
-
-
Excess in Revenue
6,633,926
$
3,485,910
$
-
$
643
$
184,092
$
184,309
$
-
$
-
$
Deficit in Revenue
-
-
-
-
-
-
-
-
Adjustments to Income before Fund Balance:
Expenditures Included Above Which are by Statute
Deferred Charges to Budget of Succeeding Year
Special Emerg. Appropriation - Superstorm Sandy
-
-
-
-
-
-
-
-
Emergency Appropriation - BLRA Dissolution
-
-
-
-
-
-
-
-
Statutory Excess to Fund Balance
6,633,926
3,485,910
-
643
184,092
184,309
-
-
Fund Balance, Beginning
5,067,253
16,481,343
173,595
172,952
560,530
446,221
7
7
11,701,179
19,967,253
173,595
173,595
744,622
630,530
7
7
Decreased by:
Utilized as Anticipated Revenue
6,421,172
14,900,000
-
-
120,000
70,000
-
-
Fund Balance, Ending
5,280,007
$
5,067,253
$
173,595
$
173,595
$
624,622
$
560,530
$
7
$
7
$
See Accompanying Notes to Financial Statements
32
Modified Budget
Actual
Variance
Modified Budget
Actual
Variance
Revenue and Other Income Realized
Fund Balance Utilized
6,421,172
$
6,421,172
$
-
$
120,000
$
120,000
$
-
$
Miscellaneous Revenues Anticipated
45,150,562
43,588,535
(1,562,027)
1,256,750
1,331,242
74,492
Receipts from Delinquent Taxes
210,000
40,182
(169,818)
-
-
-
Receipts from Current Taxes - Net of Taxes for County,
School District and Special Improvement District
80,628,755
82,393,735
1,764,980
-
-
-
Non-Budget Revenues
2,125,715
2,125,715
-
-
-
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
-
2,247,007
2,247,007
-
-
-
Grant Appropriations Cancelled
-
4,183,887
4,183,887
-
-
-
Prior Year Interfunds Returned
-
51,182
51,182
-
-
-
Other Credits to Income
-
320,573
320,573
-
109,600
109,600
132,410,489
$
141,371,988
8,961,499
1,376,750
$
1,560,842
184,092
Expenditures
Budget and Emergency Appropriations:
Operations:
Salaries and Wages
56,585,769
$
56,585,769
-
635,000
$
635,000
-
Other Expenses
35,861,545
35,861,545
-
325,000
325,000
-
Deferred Charges & Statutory Expenditures
14,201,145
14,201,145
-
100,000
100,000
-
Debt Service
23,162,030
22,854,067
(307,963)
316,750
316,750
-
Reserve for Uncollected Taxes
2,600,000
2,600,000
-
-
-
-
132,410,489
132,102,526
(307,963)
1,376,750
1,376,750
-
Parking Utility Operating Fund
CITY OF BAYONNE
ALL FUND TYPES AND ACCOUNT GROUPS
FOR THE YEAR ENDED DECEMBER 31, 2015
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
- REGULATORY BASIS - BUDGET VS. ACTUAL
Current Fund
See Accompanying Notes to Financial Statements
33
Modified Budget
Actual
Variance
Modified Budget
Actual
Variance
Parking Utility Operating Fund
CITY OF BAYONNE
ALL FUND TYPES AND ACCOUNT GROUPS
FOR THE YEAR ENDED DECEMBER 31, 2015
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
- REGULATORY BASIS - BUDGET VS. ACTUAL
Current Fund
Expenditures (continued)
Interfund Advances
-
$
109,731
$
109,731
$
-
$
-
$
-
$
Refund of Prior Year Taxes
-
1,425,763
1,425,763
-
-
-
Appropriated Grants Receivable Cancelled
-
1,100,042
1,100,042
-
-
-
Other Charges to Income
-
-
-
-
-
-
132,410,489
$
134,738,062
2,327,573
1,376,750
$
1,376,750
-
Excess in Revenue
6,633,926
$
6,633,926
$
184,092
$
184,092
$
Fund Balance, January 1
5,067,253
5,067,253
560,530
560,530
11,701,179
11,701,179
744,622
744,622
Less: Utilized as Anticipated Revenue
6,421,172
6,421,172
120,000
120,000
Fund Balance, December 31
5,280,007
$
5,280,007
$
624,622
$
624,622
$
See Accompanying Notes to Financial Statements
34
NOTES TO FINANCIAL STATEMENTS
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The City of Bayonne (the “City”) is a general-purpose government that is governed by a separately
elected governing body. It is legally separate and fiscally independent of other state and local
governments. The City is organized as a Mayor – Council municipality under the provisions of N.J.S.A.
40:69A. The City is governed by an elected Mayor and Council, and by such other officers and
employees as may be duly appointed. The Council consists of five members, two of which are elected
at-large by voters of the City and serve a term of four years beginning on the first day of July next
following their election. The Mayor is also elected directly by the voters of the City and also serves a
term of four years beginning the first day of July following the election.
The financial statements of the City include every board, body, officer or commission supported and
maintained wholly or in part by funds appropriated by the City, as required by N.J.S.A. 40A:5-5. The
Governmental Accounting Standards Board (herein referred to as “GASB”) establishes criteria to be
used to determine which component units should be included in the financial statements of the primary
government (the City). The State of New Jersey, Department of Community Affairs, Division of Local
Government Services (the “Division”) requires the financial statements of the City to be reported
separately from its component units. If the provisions of GASB had been complied with, the financial
statements of the following component units would have been discretely presented with the financial
statements of the City:
Bayonne Board of Education
Bayonne Housing Authority
Bayonne Municipal Utilities Authority
Special Improvement District
Audit reports of the component units are available at the offices of each of the respective component
units.
BASIS OF PRESENTATION
The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for
establishing governmental accounting and financial reporting principles. GASB codification establishes
three fund categories to be used by general purpose governmental units when reporting financial
position and results of operations in accordance with accounting principles generally accepted in the
United States of America (GAAP).
35
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
BASIS OF PRESENTATION (continued)
The financial statements of the City have been prepared in conformity with accounting principles and
practices prescribed by the Division, which differ from GAAP. The principles and practices prescribed
by the Division are designed primarily for determining compliance with legal provisions and budgetary
restrictions and as a means of reporting on the stewardship of public officials with respect to public
funds. Under this method of accounting, the City accounts for its financial transactions through the
following separate funds and account group, which differ from the fund structure required by GAAP.
DESCRIPTION OF FUNDS
Current Fund - is used to account for all resources and expenditures for governmental operations of a
general nature. The Federal and State Grant Fund is presented with the Current Fund.
Trust Funds - are used to account for receipts, custodianship and disbursement of dedicated revenues in
accordance with the purpose for which each reserve was created, subject to available cash in each
individual trust fund reserve established pursuant to state statutes or as an agent for individuals and other
governmental agencies.
General Capital Fund - is used to account for the receipt and disbursement of funds for the acquisition
of general capital facilities, other than those acquired in the Current Fund or other funds. Also included
in this fund are bonds and notes payable offset by deferred charges to future taxation.
Parking Utility Fund – is used to account for operations and acquisition of capital facilities of the City
owned Parking Utility. The Utility Operating Fund records revenues and expenditures applicable to the
general operation of the program to provide parking management services in the City. The Utility
Capital Fund is used to account for capital acquisitions and improvements used to support the City’s
parking management functions, and the related debt issued to finance such acquisitions and
improvements.
General Fixed Assets - is not a separate fund type, but is an account group used to account for all fixed
assets of the City.
36
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
DESCRIPTION OF FUNDS (continued)
The accounts of the City are maintained in accordance with the Division’s principles of fund accounting
to ensure observance of limitations and restrictions on the resources available. The Division’s principles
of fund accounting require that resources be classified for accounting and reporting purposes into funds
in accordance with activities or objectives specified for the resources. The operations of each fund are
accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund
equity, revenues and expenditures. Resources are allocated to and accounted for in individual funds
based upon the purposes for which they are to be spent and the means by which spending activities are
controlled. The General Fixed Assets account group, on the other hand, is a financial reporting device
designed to provide accountability for certain fixed assets and the investment in those fixed assets that
are not recorded in the funds because they do not directly affect net expendable available financial
resources.
BASIS OF ACCOUNTING
The City prepares its financial statements on a basis of accounting prescribed by the Division that
demonstrates compliance with a modified accrual basis and the budget laws of the State of New Jersey,
which is a comprehensive basis of accounting other than accounting principles generally accepted in the
United States of America. The current financial resource focus and modified accrual basis of accounting
is generally followed with significant exceptions which are explained as follows:
Revenues – Revenues are realized when received in cash except for certain amounts which are due from
other governmental units. Receipts from Federal revenue sharing funds and other Federal and State
grants are realized as revenue when anticipated in the budget. Receivables for property taxes and other
amounts that are due to the City are recorded with offsetting reserves on the balance sheet of the Current
Fund. Such amounts are not recorded as revenue until collected. Accordingly, no provision has been
made to estimate that portion of receivables that are uncollectible. Taxes and payments in lieu of taxes
collected in advance are recorded as cash liabilities in the financial statements. GAAP requires revenues
to be recognized in the accounting period when they become measurable and available and in certain
instances reduced by an allowance for doubtful accounts.
Reserve for Uncollected Taxes–Reserve for Uncollected Taxes is the minimum amount of which is
determined on the percentage of collections experienced in the immediate preceding year. It is required
to provide assurance that cash collected for taxes in the current year will provide sufficient cash flow to
meet expected obligations. A Reserve for Uncollected Taxes is not established under GAAP.
37
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
BASIS OF ACCOUNTING (continued)
Expenditures–Expenditures are recorded on the “budgetary” basis of accounting. Generally,
expenditures are recorded when an amount is encumbered for goods or services through the issuance of
a purchase order in conjunction with the encumbrance accounting system. Appropriation reserves
covering unexpended appropriation balances are automatically created at the end of each year and
recorded as liabilities, except for amounts which may be canceled by the governing body.
Appropriations for principal and interest payments on general capital indebtedness are provided on the
cash basis. GAAP requires expenditures in the current (or general) fund, to be recognized in the
accounting period in which the fund liability is incurred, if measurable, except for un-matured interest
on general long-term debt, which should be recognized when due.
Encumbrances– Encumbrances are contractual orders outstanding at year end reported as expenditures
through the establishment of an encumbrance payable. Outstanding encumbrances at year end are
reported as a cash liability in the financial statements. Encumbrances do not constitute expenditures
under GAAP.
Appropriation Reserves–Appropriations are available until lapsed at the close of the succeeding year
to meet specific claims, commitments or contracts incurred during the preceding fiscal year. Transfers
are allowed between certain line items during the first three months of the fiscal year. Lapsed
appropriation reserves are recorded as other credits to income. Appropriation Reserves do not exist
under GAAP.
Interfunds - Advances from the current fund are reported as interfunds receivable with offsetting
reserves which are created by charges to operations. Income is recognized in the year the receivables
are liquidated. Interfunds receivable in the other funds are not offset by reserves. GAAP does not
require the establishment of an offsetting reserve.
Inventories of Supplies- The costs of inventories of supplies for all funds are recorded as expenditures
at the time the individual items are purchased. The costs of inventories are not included on the various
balance sheets. GAAP requires the cost of inventories to be reported as a current asset and equally
offset by a fund balance reserve.
Property Acquired for Taxes–Property Acquired for Taxes is recorded in the current fund at the
assessed valuation when such property was acquired and is subsequently updated for revaluations. The
values of the properties are fully reserved. GAAP requires such property to be recorded as a fixed asset
at market value on the date of acquisition.
38
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
BASIS OF ACCOUNTING (continued)
Deferred Charges to Future Taxation - Funded and Unfunded - Upon the authorization of general
capital projects, the City establishes deferred charges for the costs of the capital projects to be raised by
future taxation. Funded deferred charges relate to permanent debt issued, whereas unfunded deferred
charges relate to temporary or non-funding of the authorized costs of capital projects. The City may
levy taxes on all taxable property within the City to repay the debt. Annually, the City raises the debt
requirements for that particular year in the current budget. As the funds are raised by taxation, the
deferred charges are reduced. GAAP does not require the establishment of deferred charges to future
taxation.
Fixed Capital and Fixed Capital Authorized and Uncompleted – The full amount of an authorized
Utility Capital project or acquisition is recorded as Fixed Capital Authorized and Uncompleted, until
that time when the authorized funds are used to purchase the acquisition or the capital project is
completed, when it then is reclassified as Fixed Capital.
Reserve for Amortization and Deferred Amortization – The funded amount of authorized Utility
Capital authorizations are recorded upon ordinance adoption as a Reserve for Deferred Amortization.
Principal payments on bonds or pay-downs on notes issued to finance these authorizations are amortized
to the reserve for amortization if the project is completed or the deferred amortization if the project is
not completed. Upon the completion of capital projects or acquisition of capital assets authorized, the
reserve for deferred amortization is reclassified as reserve for amortization.
Compensated Absences and Post-Employment Benefits - Compensated absences for vacation, sick
leave and other compensated absences are recorded and provided for in the annual budget in the year in
which they are paid, on a pay-as-you-go basis. Likewise, no accrual is made for post-employment
benefits, if any, which are also funded on a pay-as-you-go basis. GAAP requires that the amount that
would normally be liquidated with expendable financial resources to be recorded as an expenditure in
the operating funds and the remaining obligations be recorded as long-term obligations.
Improvement Authorizations–Improvement Authorizations in the general capital fund represent the
unexpended balance of an ordinance appropriation and is similar to the unexpended portion of the
budget in the current fund. GAAP does not recognize these amounts as liabilities.
39
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
BASIS OF ACCOUNTING (continued)
General Fixed Assets-Accounting for Governmental Fixed Assets as promulgated by the Division
differs in certain respects from GAAP, and requires the inclusion of a statement of general fixed assets
as part of the City’s basic financial statements.
Fixed assets used in governmental operations (general fixed assets) are accounted for in an account
group identified as “General Fixed Assets” and are not included within the records of any fund types.
Purchases from these funds for fixed assets are recorded as expenditures within the fund. Public domain
(infrastructure) general fixed assets consisting of certain improvements, other than improvements to
buildings, such as improvements to roads, bridges, curbs and gutters, streets and sidewalks and drainage
systems, are not capitalized.
All fixed assets, except land, are valued at historical cost or estimated historical cost if actual historical
cost is not available. Expenditures for construction in progress are recorded in the Capital Fund against
authorizations under which the project was approved until such time as the construction is completed
and put into operation.
The City is required to maintain a subsidiary ledger of detailed records of fixed assets and to provide
property management standards to control fixed assets. General fixed assets are defined as non-
expendable personal property having a physical existence, a useful life of more than five years and an
acquisition cost of $5,000 or more per unit.
Fixed assets acquired through grants in aid or contributed capital have not been accounted for separately.
No depreciation has been provided in the financial statements.
GAAP requires the recording of infrastructure assets and requires capital assets be depreciated over their
estimated useful life unless they are either inexhaustible or are infrastructure assets reported using the
modified approach.
Use of Estimates - The preparation of financial statements requires management to make estimates and
assumptions that affect: the reported amounts of assets and liabilities, disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from these estimates.
40
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
BASIS OF ACCOUNTING (continued)
Cash and Investments - New Jersey governmental units are required to deposit public funds in a public
depository. Public depositories are defined by statutes as any State or federally chartered bank, savings
bank or an association located in New Jersey or a state or federally chartered bank, savings bank or an
association located in another state with a branch office in this State, the deposits of which are insured
by the Federal Deposit Insurance Corporation (“FDIC”) and which receives or holds public funds on
deposit, but does not include deposits held by the State of New Jersey Cash Management Fund.
N.J.S.A. 40A:5-15.1 provides a list of securities which may be purchased by New Jersey municipal
units.
The City is also required to annually adopt a cash management plan and to deposit or invest its funds
pursuant to the cash management plan. The cash management plan adopted by the City requires it to
deposit funds as permitted in N.J.S.A 40:5-15.1, so long as the funds are deposited in public depositories
protected from loss under the provisions of the Governmental Unit Deposit Protection Act (GUDPA).
GUDPA was enacted in 1970 to protect governmental units from a loss of funds on deposit with a failed
banking institution in New Jersey and requires all public depositories pledge collateral, having a market
value of five percent of the average daily balance of collected public funds, to secure the deposits of
governmental units. If a public depository fails, the collateral it has pledged, plus the collateral of all
other public depositories in the collateral pool, is available to pay the full amount of their deposits to the
governmental units.
In 2009, legislation revised GUDPA to provide higher levels of security and oversight appropriate to
contemporary banking conditions. Among the increased protections and oversight, the revised GUDPA
ensures a common level of deposit risk by each bank choosing to accept local government deposits,
requires banks to fully collateralize deposits over $200 million, implements enforcement protocol which
allows the Department of Banking and Insurance to institute risk-based collateral requirements promptly
when a bank shows signs of stress, provides enhanced oversight by the Department of banking and
insurance and permits GUDPA certificates to be provided through an online system.
Cash Equivalents include certificate of deposits with a maturity date of less than three (3) months.
Also see Note B - Cash and Cash Equivalents.
41
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
BASIS OF ACCOUNTING (continued)
Budgets and Budgetary Accounting- An annual budget is required to be adopted and integrated into
the accounting system to provide budgetary control over revenues and expenditures. Budget amounts
presented in the accompanying financial statements represent amounts adopted by the City and approved
by the Division in accordance with the Local Budget Law. Budgets are adopted on the same basis of
accounting utilized for the preparation of the City’s financial statements. The budgetary requirements
herein outlined are applicable to only the Current Fund, and not the Trust Fund, General Capital Fund or
the General Fixed Assets account group. However, statutes require the City to adopt annually a six-year
capital plan. This plan allows the governing body to expend or incur obligations for capital purposes
only. Such projects under the plan must be adopted through capital ordinance.
The City must adhere to procedures for adoption of its annual budget as established by the Division.
These procedures include statutory deadlines of: February 20 for introduction and approval and March
20 for adoption. These dates are subject to extension by the Division by approval of the Local Finance
Board. Appropriations within the adopted budget cannot be modified until the final two months of the
year at which time transfers between certain line items are allowed. Under certain circumstances
emergency authorizations and insertions of items of revenue and appropriation are allowed by
authorization of the governing body, subject to approval of the Division.
The City must prepare its budgets in compliance with applicable laws capping the amounts by which
both the budgeted appropriations and tax levy can be increased. A description of both “CAPS” follows:
1977 Appropriation "CAP": The 1977 Appropriation Cap is calculated using the formulas and
provisions of N.J.S.A. 40A:4-45.1 through 4-45.43a. The law was originally adopted in 1976 and was
most recently amended in 2003. Under this law, the City is permitted to increase its overall
appropriations (with certain exceptions) by 2.5% or the “cost of living adjustment” (COLA), whichever
is less. The COLA is calculated based on the traditional federal government inflation calculation. The
City can, when the COLA is less than or equal to 2.5%, increase its allowable inside-the-cap spending to
3.5%, upon passage of a COLA Rate Ordinance.
2010 Levy "CAP": The 2010 Levy Cap is calculated using the formulas and provisions of N.J.S.A
40A:4-45.44 through 45.47. It establishes limits on the increase in the total City amount to be raised by
taxation (tax levy). The core of the levy cap formula is a 2% increase to the previous year’s amount to
be raised by taxation, net of any applicable cap base adjustments and emergency or special emergency
appropriations.
42
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
BASIS OF ACCOUNTING (continued)
Long-Term Obligations - General long-term debt is recognized as a liability of the General Capital
Fund for the full amount.
Reserves (Other than Reserve for Receivables)- Reserves, other than reserves for receivables, are
considered liabilities, and not as a reservation of fund balance.
Reserves for Receivables–Receivables of the City, with the exception of certain intergovernmental
receivables, are offset on the balance sheet with a credit that is created to preserve the revenue
recognition basis required by the Division’s accounting policies. The reserve delays the recognition of
these revenues until they are received in cash.
Advertising Costs -Advertising costs are charged against the appropriate budget line as they occur. The
City does not engage in direct-response advertising.
Sale of Municipal Assets - The proceeds of the sale of municipal assets can be held until made
available through a future budget appropriation. GAAP requires such proceeds to be recorded as
revenue in the year of sale.
Fund Balance - Fund equity represented on the financial statements consists solely of Fund Balance,
which is not further categorized with respect to reservations (portions of fund equity not available for
appropriation for expenditure or legally segregated for a specific future use) or designations (plans for
future use of financial resources).
BASIC FINANCIAL STATEMENTS
The GASB Codification also requires the financial statements of a governmental unit to be presented in
the general purpose financial statements to be in accordance with GAAP. The City presents the
financial statements listed in the table of contents which are required by the Division and which differ
from the financial statements required by GAAP.
Total Columns on Combined Statements -Total columns are captioned “memorandum only” to
indicate that they are presented only to facilitate financial analysis. Data in these columns do not present
financial position, results of operations, or changes in financial position in conformity with accounting
principles generally accepted in the United States of America. Neither is such data comparable to a
consolidation. Interfund eliminations have not been made in the aggregation of this data.
43
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
BASIC FINANCIAL STATEMENTS (Continued)
Comparative Data -Comparative data for the prior year has been presented in the accompanying
financial statements in order to provide an understanding of changes in the City’s financial position and
operations. Comparative data is not presented in all statements because their inclusion would make
certain statements unduly complex and difficult to understand.
Reclassifications -Certain reclassifications have been made to the prior year financial statement
presentation to correspond to the current year’s format. These reclassifications had no effect on fund
balance or changes in fund balance.
Reconciliation of Accounting Basis - As described throughout Note A, substantial differences exist
between GAAP and the budgetary basis prescribed by the Division. Reconciliation between the two
would not be meaningful or informative and therefore is not provided herein.
COMPREHENSIVE ANNUAL FINANCIAL REPORT
The City has elected to utilize the Comprehensive Annual Financial Report (“CAFR”) format for
presentation of its audited financial statements. Where necessary, this format was modified to comply
with reporting requirements prescribed by the Division. Some of the differences not already noted in the
previous sections are described as follows:
All funds are reported as major. No distinction between major and non-major funds is required by the
Division, therefore related information such as combining statements are not required. GAAP requires
this distinction. No government-wide statements as required under GAAP are presented, instead,
combined statements of fund types and account groups are presented which better represents the basis of
account prescribed by the Division.
Certain information, including pension and other post-employment benefits, typically required by
GAAP to be included in a “Required Supplementary Information” section is instead included in the
Notes to Financial Statements.
The City’s CAFR includes a section titled supplementary information. This section incorporates
budgetary comparison schedules similar to those required by GAAP, but also includes other detailed
schedules which comply with accounting practices prescribed by the Division.
44
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE B. CASH, CASH EQUIVALENTS AND INVESTMENTS
DEPOSITS
Cash and cash equivalents on deposit as of the years ended December 31, 2015 and 2014 are partially
insured by the FDIC up to $250,000 for each depository. Deposits in excess of FDIC limits, as noted
below, are entirely insured or collateralized by a collateral pool maintained by public depositories as
required by the GUDPA (see Note A - Cash and Investments) or are on deposit with the MBIA
Government Investment Pool, New Jersey Asset and Rebate Management Program (NJARM) and New
Jersey Cash Management Fund.
Custodial Credit Risk - Custodial credit risk is the risk that, in the event of a bank failure, the City will
not be able to recover deposits or collateral securities that are in the possession of an outside party. The
City does not have a deposit policy for custodial credit risk. Deposits are exposed to custodial credit
risk if they are not covered by depository insurance and the deposits are:
a. Uncollateralized.
b. Collateralized with securities held by the pledging financial institution.
c. Collateralized with securities held by the pledging financial institution’s trust department or agent
but not in the City’s name.
As of December 31, 2015, 49.37% of the City’s deposits were with one financial institution and 37.64%
with another, for a total of 87.01% of the City’s deposits with two financial institutions. The City’s
deposits of cash and cash equivalents at December 31, 2015 are summarized in the following table.
Insured - FDIC
1,183,802
$
Insured - GUDPA
35,809,549
36,993,351
$
Under GUDPA, financial institutions are not required to pledge collateral for amounts covered by FDIC
insurance. For the period of December 1, 2010 to December 31, 2015, noninterest-bearing transaction
accounts are insured by the Dodd-Frank Deposit Insurance Provision of the FDIC. The amount noted as
“GUDPA Insured” above includes deposits covered by the Dodd-Frank Provision as well as GUDPA.
Foreign Currency Risk - Foreign currency risk is the risk that changes in exchange rates will adversely
affect deposits. None of the City’s deposits as of December 31, 2015 are known to be held in foreign
currency.
45
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE B. CASH, CASH EQUIVALENTS AND INVESTMENTS (continued)
INVESTMENTS
New Jersey statutes permit the City to purchase the following types of securities when authorized by the
cash management plan (described in note A):
Bonds or other obligations of the United States of America or obligations guaranteed by the
United States of America.
Government money market mutual funds.
Any obligation that a federal agency or a federal instrumentality has issued in accordance with
an act of Congress, which security has a maturity date not greater than 397 days from the date of
purchase, provided that such obligation bears a fixed rate of interest not dependent on any index
or other external factor.
Bonds or other obligations of the local unit or bonds or other obligations of school districts of
which the local unit is a part or within which the school district is located.
Bonds or other obligations having a maturity date not more than 397 days from the date of
purchase, approved by the Division of Investment of the Department of the Treasury for
investment by local units.
Local government investment pools.
Deposits with the State of New Jersey Cash Management Fund.
Agreements for the repurchase of fully collateralized securities if (a) the underlying securities are
permitted investments pursuant to the first and third bullets of this section, (b) the custody of
collateral is transferred to a third party, (c) the maturity of the agreement is not more than 30
days, (d) the underlying securities are purchased through a public depository and (e) a master
repurchase agreement providing for the custody and security of collateral is executed.
Custodial Credit Risk - In the case of investments, custodial credit risk is the risk that, in the event of
failure of the counterparty, the City will not be able to recover the value of its investments or collateral
securities in the possession of an outside party. Investments are exposed to custodial credit risk if they
are uninsured, are not registered in the City’s name and are held by either the counterparty or its trust
department or agent, but not in the City’s name.
Foreign Currency Risk - Investments are also exposed to the same foreign currency risk as deposits. It
is the risk that changes in exchange rates will adversely affect investments. The City does not have any
investments known to be denominated in foreign currency as of December 31, 2015 and 2014.
46
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE B. CASH, CASH EQUIVALENTS AND INVESTMENTS (continued)
INVESTMENTS (continued)
Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the
fair value of an investment. The City does not have a formal investment policy that limits investment
maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.
Credit Risk – Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill
its obligations. The City does not have an investment policy regarding the management of credit risk.
Concentration of Credit Risk - The City places no formal limit on the amount it may invest in any one
issuer. New Jersey Statutes limit municipal investments to those specified, and as summarily identified
in the first paragraph of the “Investments” section of this Note.
Government Investment Pools consist of investments in the New Jersey Cash Management Fund, MBIA
Municipal Investors Service Corporation and NJ Asset Rebate and Management Program (NJARM).
Because of their liquidity, these investments are classified as cash and cash equivalents on the financial
statements of the City.
New Jersey Cash Management Fund - All investments in the New Jersey Cash Management Fund are
governed by the regulations of the State Investment Council, which prescribe specific standards
designed to insure the quality of investments and to minimize the risks related to investments. In
addition to the Investment Council regulations, the Division of Investment sets further standards for
specific investments and monitors the credit of all eligible securities issues on a regular basis. In all the
years of the Division of Investment’s existence, it has never suffered a default of principal or interest on
any short-term security held by it due to the bankruptcy of a securities issuer; nevertheless, the
possibility always exists, and for this reason a reserve is being accumulated in the New Jersey Cash
Management Fund as additional protection for the other-than-State participants, which includes the City.
The City does not own specific identifiable securities, but instead has a net realizable interest in the joint
value of the fund. There is no credit rating available for the New Jersey Cash Management Fund. As of
December 31, 2015 and 2014, the City had balances of $-0, and $5,796, respectively, in the New Jersey
Cash Management Fund. These balances represent less than 1%, each year, of total deposits and
investments at December 31, 2015 and 2014.
47
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE B. CASH, CASH EQUIVALENTS AND INVESTMENTS (continued)
INVESTMENTS (continued)
MBIA Municipal Investors Service Corporation– The State of New Jersey provides oversight for this
government investment pool, whereas all securities purchased are required to be in compliance with
New Jersey State Statutes and held in a third party custody account. MBIA uses the amortized cost
method of reporting investments. The City does not own specific, identifiable securities, but instead has
a net realizable interest in the joint value of the pool. There is no credit rating available for the MBIA
government investment pool. As of December 31, 2015 and 2014, the City had balances of $-0-,
respectively, in the MBIA Government Investment Pool. These balances represent 0%, respectively, of
total deposits and investments at December 31, 2015 and 2014.
New Jersey Asset and Rebate Management Program– The NJARM is a financial organization
created exclusively for New Jersey local governments. The Program was designed to help achieve
excellence in the governmental unit’s investment program. Created as a joint investment trust under the
Interlocal Services Act, NJARM provides participants with investment and arbitrage compliance
services for both bond proceeds and general operating funds. There is no credit rating available for the
NJARM. As of December 31, 2015 and 2014, the City had balances of $-0-, respectively, in the
NJARM Program. These balances represent 0%, each year, of total deposits and investments at
December 31, 2015 and 2014.
Money Market Accounts – As of December 31, 2015 and 2014, the City’s Parking Utility Fund
invested $607,609 and $747,815, respectively, in FDIC-insured money market “buckets”. Due to their
liquidity, these funds are considered cash and cash equivalents on the City’s financial statements.
NOTE C. PROPERTY TAXES
PROPERTY TAX CALENDAR
Property tax revenues are collected in quarterly installments due February 1, May 1, August 1 and
November 1. Property taxes unpaid on April 1 of the year following their final due date are subject to
tax sale in accordance with State statutes. The amount of tax levied includes not only the amount
required in support of the City’s annual budget, but also the amounts required in support of the budget of
the entities that follow:
48
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE C. PROPERTY TAXES (continued)
PROPERTY TAX CALENDAR (continued)
School Taxes -The City is responsible for levying, collecting and remitting school taxes for the local
school district. Monies are forwarded to the school district monthly. Operations is charged for the full
amount due to operate the local school district, and is based upon the annual County certification of
apportionment of levies. As of December 31, 2015 and 2014, the City had no school taxes payable. The
school tax levy collected by the City during the year ended December 31, 2015 and 2014, amounted to
$60,283,361 and $59,392,474, respectively.
County Taxes - The City is responsible for levying, collecting and remitting county taxes for the
County of Hudson. Operations is charged for the amount due the County for the year, based upon the
ratables required to be certified to the County Board of Taxation by January 10 of the current year.
Monies are forwarded to the County on a quarterly basis. In addition, operations is charged for the
County share of Added and Omitted Taxes certified to the County Board of Taxation by October 10 of
the current year, and due to be paid to the County by February 15 of the following year. As of
December 31, 2015 and 2014, the City had County taxes payable of $23,387 and $94,880, respectively.
The total County tax levied to City taxpayers during the year ended December 31, 2015 and 2014
amounted to $28,732,549 and $27,696,235, respectively.
Special Improvement District -The City is responsible for levying, collecting and remitting Special
Improvement District (SID) taxes. The SID taxes are derived from assessments made upon the members
within the SID and billed through the quarterly property tax bills as noted above. Monies are forwarded
to the SID on a quarterly basis. As of December 31, 2015 and 2014, the City had Special Improvement
District taxes payable of $494,558 and $364,928, respectively. The amount of Special Improvement
District Tax levied and collected by the City amounted to $290,000, each year, during the year ended
December 31, 2015 and 2014.
PROPERTY TAXES RECEIVABLE
Reserve for Uncollected Taxes - Reserve for Uncollected Taxes is a non-spending item of
appropriation required by statute to be included in the City’s annual budget. This appropriation protects
the City from taxes not paid currently by providing assurance that cash collected in the current year will
provide sufficient cash flow to meet obligations as they become due. The minimum amount required to
be appropriated in the budget is determined by the percentage of collections experienced in the
immediate preceding year, unless the three-year average option is chosen. For the year ended December
31, 2015 and 2014, the budgeted reserve for uncollected taxes was $2,600,000 and $2,720,000,
respectively.
49
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE C. PROPERTY TAXES (continued)
PROPERTY TAXES RECEIVABLE (continued)
Delinquent Taxes and Tax Title Liens - As described in Note A, taxes receivable and tax title liens are
realized as revenue when collected. Uncollected receivables are fully reserved, so no provision is made
for the uncollectible portions of these taxes. As of December 31, 2015 and 2014, property taxes
receivable were $748,057 and $841,686, respectively and tax title liens receivable were $654,855 and
$617,705, respectively.
Property Acquired by Tax Title Lien Liquidation – In lieu of a traditional tax sale, the City once
again conducted a bulk levy sale and sold the balance due of its tax levy for the fiscal year ended
December 31, 2015 to a third party purchaser. The sale included all properties except those which were
in bankruptcy or subject to an existing municipal lien. The City received the full value of the balance
due plus a premium of $401,000. The City continues to collect the taxes and any interest due and
forwards those amounts weekly to the purchaser. There were no additional properties acquired by tax
title lien liquidation during the year ended December 31, 2015 and 2014. The value of properties
acquired by tax title lien liquidation as of December 31, 2015 and 2014 was $6,474,000, each year.
Prepaid Taxes - Taxes collected in advance are recorded as cash liabilities in the financial statements.
Prepaid taxes as of December 31, 2015 and 2014 were $770,182 and $681,936, respectively.
Tax Overpayments - Overpaid taxes collected during the year and due to taxpayers either as a refund or
tax credit are recorded as cash liabilities in the financial statements. Tax overpayments as of December
31, 2015 and 2014 were $2,956,296 and $2,859,063, respectively.
50
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE D. MUNICIPAL DEBT
SUMMARY OF MUNICIPAL DEBT
The Local Bond Law governs the issuance of bonds to finance general municipal and utility capital
expenditures. Most bonds are retired in serial installments within the statutory period of usefulness.
Other bonds may be term bonds with sinking fund requirements. Bonds issued by the City are general
obligation bonds, backed by the full faith and credit of the City. Bond Anticipation Notes, which are
issued to temporarily finance capital projects, must be paid off within ten years or retired by the issuance
of bonds.
School Debt (Included as Obligations of the City) - The City of Bayonne Board of Education is a
Type I School District, as such, bonds and notes issued and authorized by the Board of Education are
general obligations of the City. As of January 2015, Bayonne Board of Education is now classified as a
Type II School District. These obligations are accordingly reported on the balance sheet of the City’s
General Capital Fund and are accordingly included in the summary of municipal debt.
At December 31, 2015 and 2014, the City’s statutory debt is summarized as follows:
51
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
Dec. 31, 2015
Dec. 31, 2014
Issued:
General:
Fiscal Year Adjustment Bonds
-
$
665,000
$
General Serial Bonds
114,853,257
113,885,134
Green Acres Trust Loan
226,791
266,491
Demolition Loan
100,471
200,225
Bond Anticipation Notes
58,020,000
59,625,140
Self-Liquidating Purposes:
Parking Revenue Bonds
2,855,000
3,020,000
School:
School Serial Bonds
75,496,174
79,751,385
School Promissory Notes
-
7,149,375
Gross Statutory Debt Issued
251,551,693
264,562,750
Less Statutory Deductions to Debt Limit:
Bonds and Notes for School Purposes
(75,496,174)
(86,900,760)
NJSA 40:2-52 Refunding Bonds - Pension Refunding
(14,980,000)
(15,250,000)
Self-Liquidating Purposes
(2,855,000)
(3,020,000)
Funds Held to Pay Bonds and Notes
(1,341,641)
(6,322,000)
Net Debt Issued
156,878,878
153,069,990
Authorized but not Issued:
General:
Fiscal Year Adjustment Bond Refunding
-
27,293
General Improvements
3,349,746
3,371,937
School Improvements
3,700,000
3,700,630
Gross Authorized but not Issued
7,049,746
7,099,860
Less Statutory Deductions:
Applicable for School Purposes
(3,700,000)
(3,700,630)
Net Debt Authorized but Not Issued
3,349,746
3,399,230
Net Bonds and Notes Issued and Authorized but not Issued
160,228,624
$
156,469,220
$
SUMMARY OF MUNICIPAL DEBT
52
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE D. MUNICIPAL DEBT (continued)
SUMMARY OF MUNICIPAL DEBT (continued)
The City’s long-term debt is summarized below:
Balance
Balance
Due by
Dec. 31, 2014
Issued
Retirements
Dec. 31, 2015
Dec. 31, 2016
General Capital Fund:
Fiscal Year Adjustment Bonds
665,000
$
-
$
665,000
$
-
$
-
$
General Serial Bonds
113,885,134
3,020,000
2,051,877
114,853,257
2,659,893
School Serial Bonds
79,751,385
1,639,000
5,894,211
75,496,174
6,340,240
Green Acres Trust Loan
266,491
-
39,700
226,791
40,499
Demolition Loan
200,225
-
99,754
100,471
100,471
Parking Utility Capital Fund:
Parking Revenue Bonds
3,020,000
50,000
215,000
2,855,000
195,000
197,788,235
$
4,709,000
$
8,965,542
$
193,531,693
$
9,336,103
$
Debt Refunding
During the year ended December 31, 2015, the City renewed or refunded School Promissory Notes and
Bond Anticipation Notes, the proceeds of which were used to pay the principal of the maturing notes
less statutory minimum payments appropriated through the Current Fund budget. School Promissory
Notes and Bond Anticipation Notes are more fully discussed herein.
Qualified Bonds
Certain bonds of the City are issued pursuant to the Municipal Qualified Bond Act. Under this act,
portions of State Aid revenues are withheld by the State of New Jersey and forwarded directly to paying
agents for principal and interest payments of such bonds. The City is responsible to certify maturity
schedules of the qualified bonds to the State. During the year ended December 31, 2015 and 2014, the
State of New Jersey paid $7,343,853 and $7,177,532, respectively of qualified bond interest and
principal maturities directly to paying agents on behalf of the City in lieu of State Aid.
53
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE D. MUNICIPAL DEBT (continued)
BONDS PAYABLE
Fiscal Year Adjustment Refunding Bonds Payable
During the 2015 year, the City paid off the remaining debt with regards to the fiscal year adjustment
refunding bond. The following table is a summary of the activity for such debt during the year ended
December 31, 2015:
Balance
Balance
Description
Dec. 31, 2014
Decrease
Dec. 31, 2015
Fiscal Year Adjustment Refunding Bonds
Issued 4/1/2003 for $4,100,000
Maturing annually from 2009 to 2015
Bearing variable interest rates ranging
from 4.0% to 5.0%
665,000
$
665,000
$
-
$
665,000
$
665,000
$
-
$
Summary of Fiscal Year Adjustment Refunding Bond Activity
General Serial Bonds Payable
The City has outstanding at December 31, 2015 various general serial bond debt issues. The following
table is a summary of the activity for such debt during the year ended December 31, 2015 and the short-
term liability for each issue:
54
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE D. MUNICIPAL DEBT (continued)
BONDS PAYABLE (continued)
General Serial Bonds Payable (continued)
Balance
Balance
Due by
Description
Dec. 31, 2014
Increase
Decrease
Refunded
Dec. 31, 2015 Dec. 31, 2016
Employee Retirement Incentive Refunding Bonds
Issued 1/15/2003 for $15,795,000
Maturing annually from 2011 to 2033
Bearing variable interest rates ranging
from 5.05% to 5.68%
15,250,000
$
-
$
270,000
$
-
$
14,980,000
$
320,000
$
Capital Appreciation Bonds
Issued 7/3/2003 for $6,123,000
Maturing annually from 2011 to 2023
Bearing variable interest rates ranging
from 3.55% to 5.17%
4,193,134
-
424,877
-
3,768,257
399,893
Hudson County Improvement Authority
Issued 10/24/2008 for $10,000,000
Maturing annually from 2011 to 2025
Bearing an interest rates of 7.5%
8,065,000
-
270,000
-
7,795,000
850,000
General Improvement Infrastructure Bond
Issued 6/24/2009 for $67,625,000
Maturing annually from 2010 to 2039
Bearing variable interest rates ranging
from 4.0% to 5.75%
67,040,000
-
290,000
-
66,750,000
355,000
Redevelopment Agency Revenue Bonds
Issued 8/15/2013 for $13,225,000
Maturing annually from 2014 to 2038
Bearing variable interest rates ranging
from 5.4% to 7.625%
13,015,000
-
220,000
(11,755,000)
1,040,000
235,000
Special Assessment Bonds
Issued 11/19/2014 for $6,322,000
Maturing annually from 2015 to 2034
Bearing variable interest rates ranging
from 2.25% to 5.00%
6,322,000
-
322,000
-
6,000,000
320,000
General Obligation Refunding Bonds
Issued 6/10/2015 for $3,020,000 plus refunding
of Redevelopment Agency Revenue Bonds
in amount of $11,755,000
Maturing annually from 2015 to 2038
Bearing variable interest rates ranging
from 2.000% to 4.125%
-
3,020,000
255,000
11,755,000
14,520,000
180,000
113,885,134
$
3,020,000
$
2,051,877
$
-
$
114,853,257
$
2,659,893
$
Summary of General Serial Bonds Activity
55
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE D. MUNICIPAL DEBT (continued)
BONDS PAYABLE (continued)
General Serial Bonds Payable (continued)
In a prior year, the City elected to participate in the Early Retirement Incentive (ERI) Program for
employees covered by PERS, PFRS and TPAF. On February 6, 2003, the City issued Federally Taxable
Pension Refunding Bonds, Series 2003, in the amount of $15,795,000, the proceeds of which were used
to pay the pension liabilities. These bonds are included in the above general serial bonds payable.
School Serial Bonds Payable
The City has outstanding at December 31, 2015 various school serial bond debt issues. The following
table is a summary of the activity for such debt during the year ended December 31, 2015 and the short
term liability for each issue:
Balance
Balance
Due by
Description
Dec. 31, 2014
Increase
Decrease
Refunded Dec. 31, 2015 Dec. 31, 2016
School Refunding Bonds
Issued 4/1/2003 for $3,965,000
Maturing annually from 2016 to 2023
Bearing variable interest rates ranging
from 5.0% to 5.5%
3,965,000
$
-
$
-
$
-
$
3,965,000
$
410,000
$
Capital Appreciation Bonds
Issued 2/15/2003 for $4,753,739
Maturing annually from 2010 to 2022
Bearing variable interest rates ranging
from 4.075% to 4.974%
2,659,283
-
355,260
-
2,304,023
369,188
Capital Appreciation Bonds
Issued 7/3/2003 for $12,381,097
Maturing annually from 2012 to 2023
Bearing variable interest rates ranging
from 3.75% to 4.96%
8,933,102
-
1,048,951
-
7,884,151
1,051,052
School Bonds
Issued 12/2/2004 for $55,309,000
Maturing annually from 2006 to 2024
Bearing variable interest rates ranging
from 4.125% to 4.5%
6,300,000
-
2,700,000
-
3,600,000
315,000
School Bonds (NJ School Bond Reserve Act)
Issued 10/24/2008 for $15,636,000
Maturing annually from 2009 to 2030
Bearing variable interest rates ranging
from 6.0% to 6.25%
15,186,000
-
300,000
(13,836,000)
1,050,000
325,000
Summary of School Serial Bonds Activity
56
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE D. MUNICIPAL DEBT (continued)
BONDS PAYABLE (continued)
School Serial Bonds Payable (continued)
Balance
Balance
Due by
Description
Dec. 31, 2014
Increase
Decrease
Refunded Dec. 31, 2015 Dec. 31, 2016
Early Retirement Incentive Refunding Bonds
Issued 5/7/2009 for $10,920,000
Maturing annually from 2010 to 2021
Bearing variable interest rates ranging
from 3.0% to 6.25%
7,180,000
$
-
$
860,000
$
-
$
6,320,000
$
905,000
$
School Bonds
Issued 11/19/2014 for $6,121,000
Maturing annually from 2015 to 2034
Bearing variable interest rates ranging
from 2.25% to 5.00%
6,121,000
-
215,000
-
5,906,000
220,000
School Bonds
Issued 11/19/2014 for $1,027,000
Maturing annually from 2015 to 2021
Bearing variable interest rates ranging
from 2.00% to 3.25%
1,027,000
-
140,000
-
887,000
140,000
School Refunding Bonds
Issued 8/13/2014 for $28,380,000
Maturing annually from 2016 to 2025
Bearing variable interest rates ranging
from 3.0% to 5.0%
28,380,000
-
-
-
28,380,000
2,505,000
School Bonds (NJ School Bond Reserve Act)
Issued 6/10/2015 for $1,639,000 plus
refunding of old School Bonds in amount
of $13,836,000
Maturing annually from 2015 to 2030
Bearing variable interest rates ranging
from 2.0% to 5.0%
-
1,639,000
275,000
13,836,000
15,200,000
100,000
79,751,385
$
1,639,000
$
5,894,211
$
-
$
75,496,174
$
6,340,240
$
Summary of School Serial Bonds Activity - continued
57
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE D.MUNICIPAL DEBT (continued)
BONDS PAYABLE (continued)
Parking Utility Capital Fund - Revenue Bonds Payable
The City has outstanding at December 31, 2015 various Parking Utility Bonds. The following table is a
summary of the activity for such debt during the year ended December 31, 2015 and the short term
liability for each issue:
Balance
Balance
Due by
Description
Dec. 31, 2014 Increase Decrease Refunded Dec. 31, 2015 Dec. 31, 2016
Parking Revenue Bonds
Issued 6/15/2007 for $4,000,000
Maturing annually from 2007 to 2027
Bearing an interest rate of 5%
3,020,000
$
-
$
170,000
$
(2,480,000)
$
370,000
$
180,000
$
Parking Utility Refunding Bonds
Issued 6/10/2015 for $50,000 plus
refunding of parking revenue bonds
in amount of $2,480,000
Maturing annually from 2015 to 2027
Bearing variable interest rates ranging
from 2.0% to 5.0%
-
50,000
45,000
2,480,000
2,485,000
15,000
3,020,000
$
50,000
$
215,000
$
-
$
2,855,000
$
195,000
$
Summary of Parking Revenue Bond Activity
The Parking Utility Fund had an excess in revenues for the year ended December 31, 2015 and therefore
qualifies as self-liquidating. That calculation is provided below. An excess in revenues allows the
entire amount of Parking Revenue Bonds outstanding, $2,855,000, to be deducted from the gross debt of
the City.
Total Cash Receipts from Fees, Rents or Other Charges
1,326,734
$
Operating and Maintenance Cost
932,822
$
Debt Service:
Interest
146,750
Principal
170,000
1,249,572
Excess in Revenues
77,162
$
Self-Liquidating Utility Calculation
58
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE D.MUNICIPAL DEBT (continued)
LOANS PAYABLE
Demolition Loans Payable
The City has outstanding at December 31, 2015 a loan agreement with the NJ Department of
Community Affairs for the demolition of unsafe buildings. The following table is a summary of the
activity for such debt during the year ended December 31, 2015 and the short term principal liability:
Balance
Balance
Due by
Description
Dec. 31, 2014
Decrease
Dec. 31, 2015
Dec. 31, 2016
Demolition Loan
Issued 10/23/2006 for $973,021
Maturing annually from 2007 to 2016
Bearing an interest rate of 0.720%
200,225
$
99,754
$
100,471
$
100,471
$
200,225
$
99,754
$
100,471
$
100,471
$
Summary of Demolition Loan Activity
Green Trust Loans Payable
The City has outstanding at December 31, 2015 various Green Trust Loans. The following table is a
summary of the activity for such debt during the year ended December 31, 2015 and the short term
principal liability for each issue:
Balance
Balance
Due by
Description
Dec. 31, 2014
Decrease
Dec. 31, 2015
Dec. 31, 2016
1983 Green Trust
Issued 1998 for $450,000
Maturing annually from 1999 to 2018
Bearing variable interest rates
94,135
$
26,230
$
67,905
$
26,757
$
1995 GFB
Issued 2006 for $171,000
Maturing annually from 2007 to 2026
Bearing variable interest rates
108,755
8,500
100,255
8,671
95GT
Issued 2006 for $100,000
Maturing annually from 2007 to 2026
Bearing variable interest rates
63,601
4,970
58,631
5,071
266,491
$
39,700
$
226,791
$
40,499
$
Summary of Green Trust Loans Activity
59
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE D.MUNICIPAL DEBT (continued)
DEBT SERVICE REQUIREMENTS TO MATURITY
The repayment schedule of annual debt service principal and interest for the next five years, and five
year increments there-after, for bonds issued and outstanding is as follows:
Year Ended
Total
Total
Dec. 31,
Principal
Interest
Principal
Interest
Principal
Interest
Principal
Interest
2016
2,659,893
6,257,167
6,340,240
$
3,973,697
$
195,000
$
119,300
$
9,195,133
$
10,350,164
$
2017
3,115,214
6,332,419
6,384,817
3,887,740
205,000
109,750
9,705,031
10,329,909
2018
2,890,234
6,222,412
6,765,362
3,893,719
205,000
104,700
9,860,596
10,220,831
2019
2,965,180
6,131,200
6,810,597
3,747,534
210,000
100,600
9,985,777
9,979,334
2020
3,074,837
6,004,194
7,024,122
3,574,403
220,000
92,200
10,318,959
9,670,797
2021-2025
18,222,900
26,650,048
27,865,036
10,990,331
1,245,000
314,500
47,332,936
37,954,879
2026-2030
22,100,000
19,399,069
12,690,000
2,098,938
575,000
37,600
35,365,000
21,535,607
2031-2035
31,265,000
12,786,862
1,616,000
139,340
-
-
32,881,000
12,926,202
2036-2039
28,560,000
3,881,831
-
-
-
-
28,560,000
3,881,831
114,853,258
$
93,665,202
$
75,496,174
$
32,305,702
$
2,855,000
$
878,650
$
193,204,432
$
126,849,554
$
Schedule of Debt Service Requirements to Maturity - Bonds Issued and Outstanding
General Serial Bonds
School Serial Bonds
Parking Revenue Bonds
The repayment schedule of annual debt service principal and interest for the next five years, and five
year increments there-after, for loans outstanding is as follows:
Year Ended
Dec. 31,
Principal
Interest
Principal
Interest
2016
40,500
4,334
100,471
723
2017
41,314
3,520
-
-
2018
28,153
2,690
-
-
2019
14,588
2,264
-
-
2020
14,881
1,971
-
-
2021-2025
79,013
5,245
-
-
2026
8,342
83
-
-
226,791
$
20,107
$
100,471
$
723
$
Green Trust Loans
Demolition Loan
Schedule of Debt Service Requirements to Maturity - Loans Outstanding
60
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE D.MUNICIPAL DEBT (continued)
NOTES PAYABLE
Bond Anticipation Notes
The City issues bond anticipation notes to temporarily fund various capital projects prior to the issuance
of serial bonds. The term of the notes cannot exceed one year, but the notes may be renewed from time
to time for a period not exceeding one year. Generally, such notes may be paid no later than the close of
the tenth fiscal year next following the date of the original notes. The Division also prescribes that notes
cannot be renewed past the third anniversary date of the original note unless an amount equal to at least
the first legally required installment is paid prior to each anniversary date.
The purposes for which these notes were issued as well as more detailed information of the above-
referenced information can be found in the table that follows:
Paid by Debt
Interest
Maturity
Notes
Reserved from
Paid
Maturity
Interest
Date
Amount
Rate
Date
Balance
Issued
2014 Bond Proceeds
Down
Balance
Date
Rate
Refunding of Tax Appeals:
6/30/2008
2,800,000
1.250%
7/25/2015
460,000
-
-
399,143
60,857
7/6/2016
2.000%
3/31/2011
2,290,000
1.500%
3/27/2015
3,166,000
-
-
908,000
2,258,000
7/6/2016
2.000%
12/22/2015
4,230,000
-
4,230,000
-
-
4,230,000
7/6/2016
1.250%
Acquisition and of Easement of Land:
5/13/2005
7,000,000
1.300%
1/15/2015
6,322,094
-
6,321,000
1,094
-
Citywide Communication Systems:
3/9/2007
5,075,000
1.250%
7/15/2015
3,472,360
-
-
267,189
3,205,171
7/6/2016
2.000%
Various Capital Improvements:
3/9/2007
1,690,000
1.250%
7/5/2015
1,024,640
-
-
88,668
935,972
7/6/2016
2.000%
7/6/2015
3,780,000
-
3,780,000
-
-
3,780,000
7/6/2016
2.000%
Bayonne Medical Center:
11/26/2007
6,200,000
90.000%
7/5/2015
2,075,000
-
-
1,000,000
1,075,000
7/6/2016
1.150%
BLRA Dissolution:
7/25/2013
43,735,000
90.000%
7/15/2015
43,105,046
-
-
630,046
42,475,000
7/6/2016
1.150%
59,625,140
$
8,010,000
$
6,321,000
$
3,294,140
$
58,020,000
$
DETAIL OF BOND ANTICIPATION NOTES
December 31, 2014
Original Issue
December 31, 2015
61
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE D. MUNICIPAL DEBT (continued)
NOTES PAYABLE (continued)
School Promissory Notes
The purposes for which these notes were issued as well as more detailed information of the above-
referenced information can be found in the table that follows:
Interest
Maturity
Maturity
Interest
Date
Amount
Rate
Date
Balance
Notes Paid
Balance
Date
Rate
Various School Improvements:
11/20/2009
6,632,065
$
1.30%
1/15/2015
6,121,906
$
6,121,906
$
-
$
11/20/2009
1,112,685
1.27%
1/15/2015
1,027,469
1,027,469
-
7,149,375
$
7,149,375
$
-
$
Paid by Proceeds on Reserve from 2014 Bonds
7,149,000
$
Paid by Budget Appropriation
375
7,149,375
$
December 31, 2014
Original Issue
DETAIL OF SCHOOL PROMISSORY NOTES
December 31, 2015
Tax Anticipation Notes
Tax anticipation notes are issued for interim financing of Current Fund operations. The local budget law
allows the City to issue notes in anticipation of the collection of taxes or other revenues of such year for
the purposes provided for in the current operating budget. These notes cannot exceed 30% of the tax
levy of the previous fiscal year plus 30% of the miscellaneous revenues realized in cash of the previous
fiscal year. All notes must be paid within 120 days of the beginning of the next fiscal year. There were
no tax anticipation notes issued or outstanding at December 31, 2015 and 2014, respectively.
62
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE D. MUNICIPAL DEBT (continued)
BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
At December 31, 2015 and 2014, the City has authorized but not issued bonds and notes of $7,049,746
and $7,099,860, respectively, in the General Capital Fund. The following activity relates to bonds and
notes authorized but not issued that occurred during the year ended December 31, 2015:
Balance
Debt
Bonds/Notes
Funded by Budget
Balance
Dec. 31, 2014
Authorized
Issued
Appropriation
Dec. 31, 2015
General Improvements
3,371,937
$
8,010,000
$
8,010,000
$
22,191
$
3,349,746
$
Fiscal Year Adjustment Bonds
27,293
-
-
27,293
-
School Improvements
3,700,630
-
-
630
3,700,000
7,099,860
$
8,010,000
$
8,010,000
$
50,114
$
7,049,746
$
SUMMARY OF STATUTORY DEBT CONDITION – ANNUAL DEBT STATEMENT
The summarized statement of debt condition which follows is prepared in accordance with the required
method of setting up the Annual Debt Statement.
Gross Debt
Deductions
Net Debt
School Purposes
79,196,174
$
79,196,174
$
-
$
Self-Liquidating Purposes
2,855,000
2,855,000
-
General Bonds and Notes
176,550,265
16,321,641
160,228,624
258,601,439
$
98,372,815
$
160,228,624
$
Net debt of $160,228,624 divided by the equalized valuation basis per N.J.S.A. 40A:2-2 as amended,
$5,230,842,993 equals 3.063%.
Equalized valuation basis is the average of the equalized valuations of real estate, including
improvements, and the assessed valuation of class II Railroad Property of the County for the last 3
preceding years.
BORROWING POWER UNDER N.J.S.A. 40A:2-6 AS AMENDED
Borrowing Power
3 1/2% of Equalized Valuation Basis
183,079,505
$
Less: Net Debt
160,228,624
Excess Borrowing Power
22,850,881
$
63
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE E. FUND BALANCES APPROPRIATED
Fund balance of the City consists of cash surplus and non-cash surplus. The City can anticipate fund
balance to support its budget of the succeeding year, however, the use of non-cash surplus is subject to
the prior written consent of the Division. Fund balances at December 31, 2015 and 2014 which were
appropriated and included as anticipated revenue in the Current Fund and Parking Utility Operating
Fund budgets of the succeeding year were as follows:
Fund Balance
Utilized in
Fund Balance
Utilized in
Dec. 31, 2014
2015 Budget
Dec. 31, 2015
2016 Budget
Current Fund
5,067,253
$
6,421,173
$
5,280,007
$
5,000,000
$
Capital Fund
173,595
-
172,126
-
Parking Utility Fund:
Operating
560,530
120,000
560,530
180,000
Capital
7
-
7
-
NOTE F. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION
Substantially all City employees participate in the Consolidated Police and Fireman’s Pension Fund
(CPFPF), Public Employees Retirement System (PERS), Police and Fireman’s Retirement System of
New Jersey (PFRS) or the Defined Contribution Retirement Program (DCRP), all of which are multiple
employer plans sponsored and administered by the State of New Jersey, with the exception of the
CPFPF, which is a single employer plan. The CPFPF, PERS and PFRS are cost sharing contributory
defined benefit public employee retirement systems. The DCRP is a defined contribution plan.
In addition, certain employees participate in the City’s Deferred Compensation Plan.
STATE-MANAGED PENSION PLANS - CPFPF
The Consolidated Police and Fireman's Pension Fund (CPFPF) is a single employer contributory defined
benefit plan which was established on January 1, 1952, under the provisions of N.J.S.A. 43:16 to
provide retirement, death and disability benefits to county and municipal police and firemen who were
appointed prior to July 1, 1944. The fund is a closed system with no active members. The City
currently only makes contributions for its retirees who are enrolled in this pension fund.
64
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE F. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (continued)
STATE-MANAGED PENSION PLANS - PERS
The PERS was established in January, 1955 under provisions of N.J.S.A. 43:15A and provides
retirement, death, disability and post-retirement medical benefits to certain qualifying Plan members and
beneficiaries. Membership is mandatory to substantially all full time employees and vesting occurs after
8 to 10 years of service for pension benefits. Significant modifications to enrollment, benefits and
eligibility for benefits under the plan were made in 2007, 2008, 2010 and 2011. These changes resulted
in various “tiers” which distinguish period of eligibility for enrollment. The delineation of these tiers is
noted below:
Tier 1: Employees enrolled before July 1, 2007.
Tier 2: Employees eligible for enrollment after June 30, 2007 but before November 2, 2008.
Tier 3: Employees eligible for enrollment after November 1, 2008 but before May 22, 2010.
Tier 4: Employees eligible for enrollment after May 21, 2010 but before June 28, 2011.
Tier 5: Employees eligible for enrollment after June 27, 2011.
Tier 1 and 2 employees must earn a base salary of $1,500 or more to enroll in the plan. Pensionable
salaries are limited to the IRS maximum salary compensation limits for Tier 1 employees and social
security maximum wage for Tier 2 employees. Tier 2 employees earning over the social security
maximum wage are eligible to participate in DCRP for the excess amount. Tier 3 employees must earn
a base salary that is annually adjusted. For the fiscal year ended December 31, 2015 and 2014 this base
salary amount was $8,200 and $8,100, respectively. Employees earning between $5,000 and the Tier 3
minimum base salary are eligible for participation in DCRP. Pensionable salaries are limited to the
social security maximum wage. Employees earning over the social security maximum wage are eligible
to participate in DCRP for the excess amount. Tier 4 and 5 employees do not have a minimum salary
requirement to enroll, but must work a minimum of 32 hours per week. Employees not meeting the
minimum hour requirement but that make over $5,000 are eligible to enroll in DRCP. Pensionable
salaries are limited to the social security maximum wage. Employees earning over the social security
maximum wage are eligible to participate in DCRP for the excess amount.
65
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE F. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (continued)
STATE-MANAGED PENSION PLANS – PERS (continued)
Service retirement benefits of 1/55th of final average salary for each year of service credit is available to
tiers 1 and 2 members upon reaching age 60 and to tier 3 members upon reaching age 62. Service
retirement benefits of 1/60th of final average salary for each year of service credit is available to tier 4
members upon reaching age 62 and tier 5 members upon reaching age 64. Early retirement benefits are
available to tiers 1 and 2 members before reaching age 60, tiers 3 and 4 before age 62 and tier 5 with 30
or more years of service credit before age 65. Benefits are reduced by a fraction of a percent for each
month that a member retires prior to the retirement age of their respective tier. Deferred retirement is
available to members who have at least 10 years of service credit and have not reached the service
retirement age for the respective tier.
Each of the 5 Tiers have eligibility requirements and benefit calculations which vary for deferred
retirements, early retirements, veteran retirements, ordinary disability retirements and accidental
disability retirements. There is no minimum service requirement to receive these pension benefits.
State-paid insurance coverage may be obtained after 25 years of service for employees in Tiers 1
through 4 and 30 years of service for Tier 5 employees.
Contributions and Liability
The contribution policy for PERS is set by N.J.S.A. 43:15A and requires contributions by active
members and their employers. Such contributions may be amended by State legislation. Employers’
contribution amounts are based on an actuarially determined rate. The annual employer contributions
include funding for basic retirement allowances and non-contributory death benefits. The employee
contributions include funding for basic retirement allowances and contributory death benefits.
Contributions made by the City and its employees for the previous three years are as follows:
Amount
As a
Base Wages
Year Ended
Paid or
Percentage of
Subject to
Amount
December 31,
Charged
Base Wages
Contributions
Contributed
2015
2,052,276
$
0.0%
16,157,773
$
7.06%
(1)
1,129,315
$
2014
1,886,925
11.8%
15,940,214
6.92%
(1)
1,091,816
2013
1,814,869
11.7%
15,568,769
6.78%
(1)
1,044,720
(1) These rates took effect on July 1
City Contribution
Employee Contributions
As a
Percentage of
Base Wages
66
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE F. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (continued)
STATE-MANAGED PENSION PLANS – PERS (continued)
Contributions and Liability (continued)
The net pension liability was measured as of June 30, 2015 and 2014, and the total pension liability used
to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s
proportion of the net pension liability was based on a projection of the City’s long-term share of
contributions to the pension plan relative to the projected contributions of all participating entities,
actuarially determined. At June 30, 2015 and 2014, the City’s net pension liability for PERS, including
the City’s proportionate share, was as follows:
Year Ended
Net Pension
June 30,
Rate
Change
Liability
2015
0.22955%
-0.00072%
51,530,384
$
2014
0.23027%
0.00001%
43,114,167
Proportionate Share
Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the
Discount Rate
The following presents the City’s proportionate share of the net pension liability as of June 30, 2015 and
2014, calculated using the discount rate as disclosed above as well as what the collective net pension
liability would be if it was calculated using a discount rate that is 1% lower or 1% higher than the
current rate:
At:
Rate
Amount
Rate
Amount
1% Decrease
3.90%
64,045,962
$
4.39%
54,239,090
$
Current Discount Rate
4.90%
51,530,384
5.39%
43,114,167
1% Increase
5.90%
41,037,414
6.39%
33,772,063
2015
2014
67
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE F. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (continued)
STATE-MANAGED PENSION PLANS – PERS (continued)
Actuarial Assumptions
The total pension liability for the June 30, 2015 and June 30, 2014 measurement dates were determined
by actuarial valuations as of July 1, 2014 and 2013, respectively, which were rolled forward to June 30,
2015 and 2014, respectively. The total pension liability for the June 30, 2013 measurement date was
determined by an actuarial valuation as of July 1, 2013. These actuarial valuations used the following
actuarial assumptions, applied to all periods in the measurement:
June 30, 2015
June 30, 2014
Inflation Rate
3.04%
3.01%
Salary Increases:
2012-2021
2.15-4.40%
2.15-4.40%
based on age
based on age
Thereafter
3.15-5.40%
3.15-5.40%
based on age
based on age
Investment Rate of Return
7.90%
7.90%
For Measurement Date of:
Mortality - For the June 30, 2015 Measurement Date, mortality rates were based on the RP-2000
Combined Healthy Male and Female Mortality Tables (setback 1 year for males and females) for service
retirement and beneficiaries of former members with adjustments for mortality improvements from the
base year of 2012 based on Projection Scale AA. The RP-2000 Disabled Mortality Tables (setback 3
years for males and setback 1 year for females) are used to value disabled retirees. The actuarial
assumptions used in the July 1, 2014 valuation were based on the results of an actuarial experience study
for the period July 1, 2008 to June 30, 2011. It is likely that future experience will not exactly conform
to these assumptions. To the extent that actual experience deviates from these assumptions, the
emerging liabilities may be higher or lower than anticipated. The more the experience deviates, the
larger the impact on future financial statements will be.
68
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE F. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (continued)
STATE-MANAGED PENSION PLANS – PERS (continued)
Actuarial Assumptions (continued)
For the June 30, 2014 Measurement Date, mortality rates were based on the RP-2000 Combined Healthy
Male and Female Mortality Tables (setback 1 year for females) with adjustments for mortality
improvements from the base year of 2012 based on Projection Scale AA. The actuarial assumptions used
in the July 1, 2013 valuation were based on the results of an actuarial experience study for the period
July 1, 2008 to June 30, 2011.
Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of
return on plan investments (7.90% at June 30, 2015 and 2014) is determined by the State Treasurer, after
consultation with the Directors of the Division of Investments and Division of Pensions and Benefits,
the board of trustees and the actuaries. The long-term expected rate of return was determined using a
building block method in which best-estimate ranges of expected future real rates of return (expected
returns, net of pension plan investment expense and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation.
Best estimates of arithmetic rates of return for each major asset class included in PERS target asset
allocations as of June 30, 2015 and 2014 are summarized in the following table:
Asset Class
2015
2014
2015
2014
Cash
5.00%
6.00%
1.04%
0.80%
U.S. Treasuries
1.75%
*
1.64%
*
Investment Grade Credit
10.00%
*
1.79%
*
Mortgages
2.10%
2.50%
1.62%
2.17%
High Yield Bonds
2.00%
5.50%
4.03%
4.82%
Inflation-Indexed Bonds
1.50%
9.00%
3.25%
3.51%
Broad U.S. Equities
27.25%
25.90%
8.52%
8.22%
Developed Foreign Equities
12.00%
12.70%
6.88%
8.12%
Emerging Market Equities
6.40%
6.50%
10.00%
9.91%
Private Equity
9.25%
8.25%
12.41%
13.02%
Hedge Funds / Absolute Return
12.00%
12.25%
4.72%
4.92%
Real Estate (Property)
2.00%
3.20%
6.83%
5.80%
Commodities
1.00%
2.50%
5.32%
5.35%
Global Debt ex U.S.
3.50%
*
-0.40%
*
REIT
4.25%
*
5.12%
*
Core Bonds
*
1.00%
*
2.49%
Intermediate-Term Bonds
*
11.20%
*
2.26%
Long-Term Expected
Target Allocation
Real Rate of Return
June 30,
June 30,
69
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE F. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (continued)
STATE-MANAGED PENSION PLANS – PERS (continued)
Actuarial Assumptions (continued)
Discount Rate - The discount rate used to measure the total pension liability was 4.90% and 5.39% as of
June 30, 2015 and 2014, respectively. This single blend discount rate was based on the long-term
expected rate of return on pension plan investments of 7.9%, and a municipal bond rate of 3.80% and
4.29% as of June 30, 2015 and 2014, respectively, based on the Bond Buyer Go 20-Bond Municipal
Bond Index which includes tax-exempt general obligation municipal bonds with an average rating of
AA/Aa or higher. The projection of cash flows used to determine the discount rate assumed that
contributions from plan members will be made at the current member contribution rates and that
contributions from employers will be made based on the average of the last five years of contributions
made in relation to the last five years of actuarially determined contributions.
Based on those assumptions, the plan’s fiduciary net position was projected to be available to make
projected future benefit payments of current plan members through 2033. Therefore, the long-term
expected rate of return on plan investments was applied to projected benefit payments through 2033, and
the municipal bond rate was applied to projected benefit payments after that date in determining the total
pension liability.
Deferred Outflows and Inflows of Resources
The following presents a summary of changes in the collective deferred outflows of resources and
deferred inflows of resources for the years ended June 30, 2015 and 2014:
Deferred
Deferred
Net Deferred
Deferred
Deferred
Net Deferred
Outflows
Inflows
Outflow /
Outflows
Inflows
Outflow /
of Resources
of Resources
(Inflow)
of Resources
of Resources
(Inflow)
Changes of Assumptions
5,533,952
$
-
$
5,533,952
$
1,320,280
$
-
$
1,320,280
$
Difference Between Expected
and Actual Experience
1,229,334
-
1,229,334
-
-
-
Net Difference Between
Projected and Actual Earnings
on Pension Plan Investments
-
(828,509)
(828,509)
-
(2,502,165)
(2,502,165)
Subtotal
6,763,286
(828,509)
5,934,777
$
1,320,280
(2,502,165)
(1,181,885)
$
Changes in Proportion
1,123,106
-
344,460
-
7,886,392
$
(828,509)
$
1,664,740
$
(2,502,165)
$
June 30, 2015
June 30, 2014
70
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE F. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (continued)
STATE-MANAGED PENSION PLANS – PERS (continued)
Deferred Outflows and Inflows of Resources (continued)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension expense as follows:
Year Ended
June 30,
2016
1,083,784
2017
1,083,784
2018
1,083,784
2019
1,709,326
2020
974,098
Thereafter
-
5,934,777
$
STATE-MANAGED PENSION PLANS – PFRS
Plan Description and Eligibility
The PFRS was established in July, 1944, under the provisions of N.J.S.A. 43:16A to provide coverage to
substantially all full time county and municipal police or firefighters and state police appointed after
June 30, 1944. Membership is mandatory for such employees with vesting occurring after 10 years of
membership. Significant modifications to enrollment, benefits and eligibility for benefits under the plan
were made in 2010 and 2011. These changes resulted in various “tiers” which distinguish period of
eligibility for enrollment. The delineation of these tiers is noted as follows:
Tier 1: Employees enrolled before May 22, 2010.
Tier 2: Employees enrolled after May 21, 2010 but before June 29, 2011.
Tier 3: Employees enrolled after June 28, 2011.
There is no minimum salary requirement to enroll, regardless of tier. Pensionable salaries are limited to
the social security maximum wage for Tier 2 and 3 employees and federal pensionable maximum for
Tier 1 employees. Employees earning over the social security maximum wage are eligible to participate
in DCRP for the excess amount.
71
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
STATE-MANAGED PENSION PLANS – PFRS (continued)
Plan Benefits
Service retirement benefits are available at age 55 and are generally determined to be 2% of final
compensation for each year of creditable service, as defined, up to 30 years plus 1% for each year of
service in excess of 30 years. Members may seek special retirement after achieving 25 years of
creditable service, in which benefits would equal 65% (tiers 1 and 2 members) and 60% (tier 3
members) of final compensation plus 1% for each year of creditable service over 25 years but not to
exceed 30 years. Members may elect deferred retirement benefits after achieving ten years of service, in
which case benefits would begin at age 55 equal to 2% of final compensation for each year of service.
Contributions and Liability
The contribution policy for PFRS is set by N.J.S.A. 43:16A and requires contributions by active
members and their employers. Such contributions may be amended by State legislation. Employers’
contribution amounts are based on an actuarially determined rate which includes the normal cost and
unfunded accrued liability. The annual employer contributions include funding for basic retirement
allowances and non-contributory death benefits. The employee contributions include funding for basic
retirement allowances and contributory death benefits. Contributions made by the City and its
employees for the previous three years are as follows:
Under N.J.S.A. 43:16A-15, local participating employers are responsible for their own contributions
based on actuarially determined amounts, except where legislation was passed which legally obligated
the State if certain circumstances occurred. The legislation which legally obligates the State is as
follows: Chapter 8, P.L. 2000, Chapter 318, P.L. 2001, Chapter 86, P.L. 2001, Chapter 511, P.L. 1991,
Chapter 109, P.L. 1979, Chapter 247, P.L. 1993 and Chapter 201, P.L. 2001.
Amount
As a
Base Wages
Year Ended
Paid or
Percentage of
Subject to
Amount
December 31,
Charged
Base Wages
Contributions
Contributed
2015
10,134,654
$
26.2%
38,673,848
$
3,867,384
$
2014
9,311,319
24.5%
37,959,957
3,795,896
2013
9,511,193
25.5%
37,931,865
3,793,185
City Contribution
Employee Contributions
As a
Percentage of
Base Wages
10.00%
10.00%
10.00%
72
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
STATE-MANAGED PENSION PLANS – PFRS (continued)
Contributions and Liability (continued)
The amounts contributed on behalf of the City under this legislation are considered to be a special
funding situation. As such, the State is treated as a non-employer contributing entity. Since the City
does not contribute under this legislation directly to the plan (except for employer specified financed
amounts), there is no net pension liability to report in the financial statements of the City related to this
legislation. However, the notes to the financial statements of the City must disclose the portion of the
State’s total proportionate share of the collective net pension liability that is associated with the City.
At June 30, 2015 and 2014, the City’s net pension liability for PFRS, including the special funding
situation described above and changes in the City’s proportionate share, was as follows:
State of N.J.
(nonemployer)
Year Ended
Net Pension
On-Behalf
June 30,
Unit
Rate
Change
Liability
of City
Total
2015
Police & Fire
1.85197%
0.64724%
197,412,428
$
17,312,408
$
214,724,836
$
2014
Police & Fire
1.20473%
0.04656%
151,543,607
$
16,318,699
$
167,862,306
$
City (employer)
Proportionate Share
Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the
Discount Rate
The following presents the City’s proportionate share of the net pension liability of the as of June 30,
2015 and 2014, calculated using the discount rate as disclosed above as well as what the collective net
pension liability would be if it was calculated using a discount rate that is 1% lower or 1% higher than
the current rate:
At:
Rate
Amount
Rate
Amount
1% Decrease
4.79%
970,478,129
$
5.32%
721,043,318
$
Current Discount Rate
5.79%
736,149,029
6.32%
535,046,021
1% Increase
6.79%
545,074,585
7.32%
381,323,823
2015
2014
73
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE F. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (continued)
STATE-MANAGED PENSION PLANS – PFRS (continued)
Actuarial Assumptions
The total pension liability for the June 30, 2015 and June 30, 2014 measurement dates were determined
by actuarial valuations as of July 1, 2014 and 2013, respectively, which were rolled forward to June 30,
2015 and 2014, respectively. The total pension liability for the June 30, 2013 measurement date was
determined by an actuarial valuation as of July 1, 2013. These actuarial valuations used the following
actuarial assumptions:
June 30, 2015
June 30, 2014
Inflation Rate
3.04%
3.01%
Salary Increases:
2012-2021
2.60-9.48%
3.95-8.62%
based on age
based on age
Thereafter
3.60-10.48%
4.95-9.62%
based on age
based on age
Investment Rate of Return
7.90%
7.90%
For Measurement Date of:
Mortality - For the June 30, 2015 Measurement Date, mortality rates were based on the RP-2000
Combined Healthy Mortality Tables projected one year using Projection Scale BB for male service
retirements with adjustments for mortality improvements from the base year based on Projection Scale
BB. Mortality rates were based on the RP-2000 Combined Healthy Mortality Tables projected fourteen
years using Projection Scale BB for female service retirements and beneficiaries with adjustments for
mortality improvements from the base year 2014 based on Projection Scale BB. The actuarial
assumptions used in the July 1, 2014 valuation were based on the results of an actuarial experience study
for the period July 1, 2010 to June 30, 2013.
For the June 30, 2014 Measurement Date, mortality rates were based on the RP-2000 Combined Healthy
Male and Female Mortality Tables with adjustments for mortality improvements from the base year of
2011 based on Projection Scale AA. The actuarial assumptions used in the July 1, 2013 valuation were
based on the results of an actuarial experience study for the period July 1, 2007 to June 30, 2010.
74
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE F. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (continued)
STATE-MANAGED PENSION PLANS – PFRS (continued)
Actuarial Assumptions (continued)
Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of
return on plan investments (7.90% at June 30, 2015 and 2014) is determined by the State Treasurer, after
consultation with the Directors of the Division of Investments and Division of Pensions and Benefits,
the board of trustees and the actuaries. The long-term expected rate of return was determined using a
building block method in which best-estimate ranges of expected future real rates of return (expected
returns, net of pension plan investment expense and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation.
Discount Rate - The discount rate used to measure the total pension liability was 5.79% and 6.32% as of
June 30, 2015 and 2014, respectively. This single blend discount rate was based on the long-term
expected rate of return on pension plan investments of 7.9%, and a municipal bond rate of 3.80% and
4.29% as of June 30, 2015 and 2014, respectively, based on the Bond Buyer Go 20-Bond Municipal
Bond Index which includes tax-exempt general obligation municipal bonds with an average rating of
AA/Aa or higher. The projection of cash flows used to determine the discount rate assumed that
contributions from plan members will be made at the current member contribution rates and that
contributions from employers will be made based on the average of the last five years of contributions
made in relation to the last five years of actuarially determined contributions. Based on those
assumptions, the plan’s fiduciary net position was projected to be available to make projected future
benefit payments of current plan members through 2045. Therefore, the long-term expected rate of
return on plan investments was applied to projected benefit payments through 2045, and the municipal
bond rate was applied to projected benefit payments after that date in determining the total pension
liability.
75
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE F. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (continued)
STATE-MANAGED PENSION PLANS – PFRS (continued)
Actuarial Assumptions (continued)
Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of
return on plan investments (7.90% at June 30, 2015 and 2014) is determined by the State Treasurer, after
consultation with the Directors of the Division of Investments and Division of Pensions and Benefits,
the board of trustees and the actuaries. The long-term expected rate of return was determined using a
building block method in which best-estimate ranges of expected future real rates of return (expected
returns, net of pension plan investment expense and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation.
Best estimates of arithmetic rates of return for each major asset class included in PFRS target asset
allocations as of June 30, 2015 and 2014 are summarized in the following table:
Asset Class
2015
2014
2015
2014
Cash
5.00%
6.00%
1.04%
0.80%
U.S. Treasuries
1.75%
*
1.64%
*
Investment Grade Credit
10.00%
*
1.79%
*
Mortgages
2.10%
2.50%
1.62%
2.17%
High Yield Bonds
2.00%
5.50%
4.03%
4.82%
Inflation-Indexed Bonds
1.50%
9.00%
3.25%
3.51%
Broad U.S. Equities
27.25%
25.90%
8.52%
8.22%
Developed Foreign Equities
12.00%
12.70%
6.88%
8.12%
Emerging Market Equities
6.40%
6.50%
10.00%
9.91%
Private Equity
9.25%
8.25%
12.41%
13.02%
Hedge Funds / Absolute Return
12.00%
12.25%
4.72%
4.92%
Real Estate (Property)
2.00%
3.20%
6.83%
5.80%
Commodities
1.00%
2.50%
5.32%
5.35%
Global Debt ex U.S.
3.50%
*
-0.40%
*
REIT
4.25%
*
5.12%
*
Core Bonds
*
1.00%
*
2.49%
Intermediate-Term Bonds
*
11.20%
*
2.26%
Long-Term Expected
Target Allocation
Real Rate of Return
June 30,
June 30,
76
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE F. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (continued)
STATE-MANAGED PENSION PLANS – PFRS (continued)
Deferred Outflows and Inflows of Resources
The following presents a summary of changes in the collective deferred outflows of resources and
deferred inflows of resources (excluding employer specific amounts) for the years ended June 30, 2015
and 2014:
Deferred
Deferred
Net Deferred
Deferred
Deferred
Net Deferred
Outflows
Inflows
Outflow /
Outflows
Inflows
Outflow /
of Resources
of Resources
(Inflow)
of Resources
of Resources
(Inflow)
Changes of Assumptions
36,447,238
$
-
$
36,447,238
$
5,689,462
$
-
$
5,689,462
$
Difference Between Expected
and Actual Experience
-
(1,702,745)
(1,702,745)
-
-
-
Net Difference Between
Projected and Actual Earnings
on Pension Plan Investments
-
(3,435,790)
(3,435,790)
-
(15,464,516)
(15,464,516)
Subtotal
36,447,238
(5,138,535)
31,308,703
$
5,689,462
(15,464,516)
(9,775,054)
$
Changes in Proportion
4,183,382
(2,142,414)
5,186,593
-
40,630,620
$
(7,280,949)
$
10,876,055
$
(15,464,516)
$
June 30, 2015
June 30, 2014
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension expense as follows:
Year Ended
June 30,
2016
5,931,841
$
2017
5,931,841
2018
5,931,841
2019
9,797,970
2020
3,715,209
Thereafter
-
31,308,703
$
77
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE F. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (continued)
STATE-MANAGED PENSION PLANS - GENERAL
The State established and administers a Supplemental Annuity Collective Trust Fund (SACT) which is
available to active members of several State-administered retirement systems to purchase annuities to
supplement the guaranteed benefits provided by their retirement system. The State or local government
employers do not appropriate funds to SACT.
The State also administers the Pension Adjustment Fund (PAF) which provides cost of living increases,
equal to 60 percent of the change in the average consumer price index, to eligible retirees in all State-
sponsored pension systems except SACT. The cost of living increases for PFRS and PERS are funded
directly by each of the respective systems and are considered in the annual actuarial calculation of the
required State contribution for that system.
According to state statutes, all obligations of PERS and PFRS will be assumed by the State of New
Jersey should the PERS and PFRS be terminated.
The State of New Jersey issues publicly available financial reports that include the financial statements
and required supplementary information of the PERS and PFRS. This report may be obtained by
writing to the State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, P.O.
Box 295, Trenton, New Jersey 08625-0295.
PERS and PFRS Fiduciary Net Position
Detailed information about the pension plans’ fiduciary net position are available in the separately
issued financial reports. These reports may be accessed via the New Jersey Division of Pension and
Benefits website at www.state.nj.us/treasury/pensions.
STATE-MANAGED PENSION PLANS – DEFERRAL
Legislation, known as Chapter 19 of the Public Laws of 2009 (P.L. 2009, c. 19), was enacted and
effective on March 17, 2009 allowing for an adjustment in the contributions that local employers, such
as the City, must make to the PERS and PFRS during the year ended June 30, 2009. Under this
legislation, local governments were given the option to defer exactly 50% of their required pension
contribution as certified by the State of New Jersey, Department of the Treasury, Division of Pensions
and Benefits or pay the full amount of the required contribution for the year ended June 30, 2009.
78
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE F. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (continued)
STATE-MANAGED PENSION PLANS – DEFERRAL (continued)
The City elected the 50% deferral in the amount of $4,568,624. Under the terms of the pension deferral
the City is obligated to commence repayment of the entire deferral in 15 amortized annual installments,
commencing with the year ended December 31, 2012. These payments will be added to the regular
pension bills. The short term liability of the deferral, payable on April 1, 2015, is $687,204, consisting
of $599,737 on the PFRS deferral and $87,467 on the PERS deferral.
DEFINED CONTRIBUTION RETIREMENT PROGRAM
The Defined Contribution Retirement Program (DCRP) was established under the provisions of P.L.
2007, Chapters 92 and 103 and expanded under the provisions of Chapter 89, P.L. 2008 and Chapter 1,
P.L. 2010. It provides eligible members with a tax-sheltered, defined contribution retirement benefit
along with life insurance and disability coverage.
Individuals eligible for membership in the DCRP include (a) state or local officials elected or appointed
or elected to new office on or after July 1, 2007,(b) employees enrolled in PERS on or after July 1, 2007
or PFRS after May 21, 2010 who earn salary in excess of established maximum compensation limits
and(c) employees otherwise eligible for PERS on or after November 2, 2008 or PFRS after May 21,
2010 that earn below the minimum PERS or PFRS salary but more than $5,000 annually. Participation
in DCRP can be irrevocably waived if an official earns less than $5,000.
Vesting occurs upon commencement of the third year of membership. Should the vesting period not be
reached, contributions will be refunded to the appropriate contributing parties. Employer matching
contributions and earnings are only available after the age of 55. Distributions render the member
retired and ineligible for future participation in any State-administered plans. Otherwise, distributions
are available at any time as lump sum, fixed term or life annuity.
79
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE F. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (continued)
DEFINED CONTRIBUTION RETIREMENT PROGRAM (continued)
Members are covered by employer-paid life insurance in the amount of 1 ½ times the annual base salary
on which DCRP contributions were based. Members are also eligible for employer-paid long-term
disability coverage after one year of participation. Eligibility occurs after six consecutive months of
total disability. Members would receive a regular monthly income benefit up to 60% of the base salary
on which DCRP contributions were based during the 12 months preceding the onset of the disability,
offset by any other periodic benefit the member may be receiving. Benefits will be paid until the age of
70 so long as the member remains disabled and has not begun receiving retirement annuity payments.
The following table represents the City and employee contributions during the previous three years:
Year
Ended
Amount
Rate
Amount
Rate
Dec. 31, 2015
56,234
$
5.5%
30,673
$
3.0%
Dec. 31, 2014
24,432
5.5%
14,513
3.0%
Dec. 31, 2013
9,684
5.5%
5,282
3.0%
Employee Contributions
City Contribution
DEFERRED COMPENSATION PLAN (unaudited)
The City has established a deferred compensation program (the “plan”) for its employees under Section
457 of the Internal Revenue Code. The plan is comprised of several separate plans, all of which are
Public Employees' Deferred Compensation Plans, covering employees and elected officials who perform
services for the City. One plan is underwritten by The Hartford Financial Services Group, Inc. (now
called Mass Mutual), the others by Variable Annuity Life Insurance Company (“VALIC”), AXA
Equitable, ING (now called VOYA) and the Metropolitan Life Insurance Company.
The Plans are a tax-deferred supplemental retirement program that allows City employees to contribute a
portion of their salaries, before federal taxes, to a retirement account. Contributions, or deferrals, are
made through payroll deductions. Individuals are 100% vested. Distributions are not available to
employees until termination, retirement, death, or unforeseeable emergency. All amounts of
compensation deferred under the plan, all property and rights purchased with those amounts, and all
income attributable to those amounts, property or rights are solely property and rights of the individual
contributors and are not subject to the claims of the City's general creditors.
80
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE G. POST-EMPLOYMENT BENEFITS
POST-EMPLOYMENT BENEFITS PLAN
Plan Description–The City contributes to the State Health Benefits Program (SHBP), a cost-sharing,
multiple-employer defined benefit post-employment healthcare plan administered by the State of New
Jersey Division of Pensions and Benefits. SHBP was established in 1961 under N.J.S.A. 52:14-17.25 et
seq., to provide health benefits to State employees, retirees and their dependents. Rules governing the
operation and administration of the program are found in Title 17, Chapter 9 of the New Jersey
Administrative Code. SHBP provides medical, prescription drugs, mental health/substance abuse, and
Medicare Part B reimbursement to retirees and their covered dependents.
The SHBP was extended to employees, retirees and dependents of participating local public employers
in 1964. Local employers must adopt a resolution to participate in the SHBP. In 1964, the City
authorized participation in the SHBP’s post-retirement benefit program. The City currently provides
lifetime medical benefits to City employees who retire from the City under the following conditions: (a)
after twenty five years of service with the City, or (b) upon a disability retirement. Coverage is also
provided for eligible family members of the employee and paid by the City for the life of the retiree.
The State Health Benefits Commission is the executive body established by statute to be responsible for
the operation of the SHBP. The State of New Jersey Division of Pensions and Benefits issues a publicly
available financial report that includes financial statements and required supplementary information for
the SHBP. That report may be obtained by writing to: State of New Jersey Division of Pensions and
Benefits,
P.O.
Box
295,
Trenton,
NJ
08625-0295
or
by
visiting
their
website
at
www.state.nj.us/treasury/pensions.
Funding Policy–Participating employers are contractually required to contribute based on the amount of
premiums attributable to their retirees. Post-retirement medical benefits under the plan have been
funded on a pay-as-you-go basis since 1994. Prior to 1994, medical benefits were funded on an
actuarial basis. Contributions to pay for the health premiums of participating retirees in the SHBP are
billed to the City on a monthly basis.
81
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE G. POST-EMPLOYMENT BENEFITS (continued)
POST-EMPLOYMENT BENEFITS PLAN (continued)
Significant Legislation - Chapter 78, P.L. 2011, effective June 28, 2011, established new employee
contribution requirements towards the cost of employer-provided health benefit coverage. Employees
are required to contribute a certain percentage of the cost of coverage. The rate of contribution is
determined based on the employee’s annual salary and the selected level of coverage. The increased
employee contributions will be phased in over a 4-year period for those employed prior to Chapter 78’s
effective date with a minimum contribution required to be at least 1.5% of salary. For those employed
on or after June 28, 2011, the 4-year phase-in does not apply and contributions based on the full
percentage rate of contribution are required. Under Chapter 78, certain future retirees eligible for
employee-paid health care coverage at retirement will also be required to pay a percentage of the cost of
their medical coverage determined on the basis of their annual retirement benefit. This legislation
expired on 12/31/15 and has not been renewed.
Chapter 2, P.L. 2010, effective May 21, 2010, requires a minimum contribution of 1.5% of base salary
toward the cost of health benefits coverage by all active public employees. Employees who become a
member on or after the law’s effective date would be required to pay in retirement 1.5% of their pension
benefit toward the cost of health care coverage under the SHBP.
NOTE H. COMPENSATED ABSENCES
Employees may accumulate unlimited sick time. Upon retirement, union employees with a minimum of
100 accrued sick days may receive a cash payment of one-third of accumulated sick time up to a
maximum of $12,500. Employees may carry vacation over for only one year. Upon termination or
retirement, employees may receive a cash payment for the full value of their accumulated vacation time.
As of December 31, 2015 and 2014, the total accumulated absence liability was $5,993,838 and
$7,019,629, respectively. No funds are reserved for accumulated absences, however, the City budgets
compensated absence appropriations annually in the applicable department line items.
82
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE I. RISK MANAGEMENT
Insurance Coverage
The City is exposed to various property and casualty risks including: property damage caused to any of
the City’s property, motor vehicles, equipment or apparatus; liability resulting from the use or operation
of such motor vehicles, equipment apparatus; liability from the City’s negligence, including that of its
officers, employees and servants; and workers’ compensation obligations.
The City established a self-insurance program in accordance with New Jersey Statute Chapter 40:10-6.
The Chapter enables the governing body of any local unit to create a fund to provide insurance coverage
for its exposure to a wide variety of property casualty risks, including property damage caused to any of
the unit's property, motor vehicles, equipment or apparatus; liability resulting from the use or operation
of such motor vehicles, equipment or apparatus; liability for the unit's negligence, including that of its
officers, employees and servants and workers' compensation obligations.
On August 17, 2011, the City authorized participation in and the execution of an Indemnity and Trust
Agreement with the New Jersey Intergovernmental Insurance Fund (the “NJIIF”) for the provision of
property and casualty insurance coverage. The NJIIF is a public entity created in 1991 and offers
coverage to municipalities, counties, and school districts statewide. The NJIIF is a New Jersey
approved, self-insured, reinsured public entity insurance pool which offers all New Jersey public entities
multiple lines of insurance.
The City has obtained the following coverage through the NJIIF:
Equipment Breakdown coverage in the amount of $100,000,000.
Crime coverage including employee dishonesty, forgery, alterations, theft, robbery and fraud in the
amount of $1,000,000.
Environmental Impairment coverage in the amount of $20,000,000.
Workers’ Compensation coverage in the amount of $2,000,000.
General, Automobile and Employee Benefits liability coverage in the amount of $15,000,000.
Public Entity Management Liability coverage, including Public Official’s Liability and
Employment Practices Liability coverage, in the amount of $10,000,000.
Surety bonds for the City Treasurer, Chief Financial Officer, Tax Collector and Municipal Court
Judges.
Disaster Recovery
The City does not have a formal disaster recovery plan in place, however, all financial data is backed up
to hard disks daily.
83
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE J. STATE AID RECEIVABLE – QUALIFIED BONDS
The Division required municipalities reverting to a calendar year to anticipate a full year of State Aid
during the six month transition year. The City receives State Aid in two forms: cash payments and
qualified bond payments in lieu of direct aid in cash. Qualified bonds are State Aid payments withheld
by the State and forwarded directly to paying agents for principal and interest payments on the bonds.
During the transition year ended December 31, 2011, the City certified qualified bond maturity
schedules for the twelve month period of July 1, 2011 to June, 30, 2012, six months beyond the end of
the transition year. As a result, the City recognized State Aid revenues in the amount of $3,357,695 for
debt service payments of the succeeding year, resulting in prepaid debt service at year end.
The following schedule summarizes the State Aid received, qualified bond payments applied and the
prepaid amounts as of December 31, 2015 and 2014.
Beginning Balance
3,558,976
$
3,517,019
$
Add: State Aid (1)
8,829,801
9,032,464
12,388,777
12,549,483
Less Received in Cash
2,156,293
$
1,812,975
$
Qualified Bond Payments
7,343,853
7,177,532
9,500,146
8,990,507
Ending Balance
2,888,631
$
3,558,976
$
STATE AID RECEIVABLE - QUALIFIED BONDS
Year Ended Dec. 31, 2014
Year Ended Dec. 31, 2015
NOTE K. CLEARING ACCOUNT
The City maintains a claims account, or a cash clearing bank account, from which bills are paid for
various funds.
NOTE L.
FIXED ASSETS
The City had the following investment balance and activity in general fixed assets for and as of the year
ended December 31, 2015:
84
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE L.
FIXED ASSETS (continued)
Balance,
Balance,
Dec. 31, 2014
Dec. 31, 2015
Land
165,984,900
$
165,984,900
$
Buildings
10,233,265
10,233,265
Improvements
4,817,988
4,817,988
Machinery, Equipment
and Other
21,309,349
21,309,349
202,345,502
$
202,345,502
$
In accordance with accounting practices prescribed by the Division, and as further detailed in Note A, no
depreciation has been provided for and fixed assets acquired through grants in aid or contributed capital
have not been accounted for separately. The City did not update their internal fixed asset ledger for the
year ending December 31, 2015.
NOTE M. DEFERRED CHARGES TO BE RAISED IN SUCCEEDING BUDGETS
There were certain capital ordinances that were not funded and prior year bills that were not
appropriated for. As of December 31, 2015, the following deferred charges are shown on the balance
sheets of the Current Fund:
Less:
Add:
Balance,
2015 Budget
Results of
Succeeding
Dec. 31, 2014
Appropriation
Current Year
Budgets
Loans Payable-Prior Year
202,391
$
-
$
-
$
202,391
$
Funding Various Capital Ordinances
50,114
50,114
-
-
Prior Year Bills
4,531
4,531
-
-
257,036
$
54,645
$
-
$
202,391
$
85
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE N. INTERFUND TRANSACTIONS
The City has various transactions by and between its individual funds. Certain accounts of the Trust and
Capital Funds earn interest which is required to be recorded as revenue in the Current Fund budget.
Other transactions include budget appropriations in the Current Fund which are required to be turned
over to the Federal and State Grant, Trust and Capital Funds. All these transfers are routine and are
consistent with the activities of the funds making the transfers.
Current Fund and Parking Utility Operating interfunds receivable are fully reserved and recognized as
credits to operations in the year the interfunds are received in cash. Interfunds receivable in the Trust
Funds, General Capital Fund and Parking Utility Operating Fund are not reserved.
The City expects all balances to be repaid by year-end with the exception of the interfund between the
Current Fund and Federal and State Grants Fund. The Federal and State Grants Fund does not have its
own bank account, therefore, the activity of the Fund is run through the Current Fund.
As of and during the year ended December 31, 2015, the Current Fund had the following interfund
activity and receivable/payable balances at year end:
General
HUD
Grants
Other
Utility
Tax Lien
Payroll
Dog
Capital
Grant Fund
Fund
Trust
Operating
Redemption Trust
Agency Fund
Insurance
Trust
Balance: December 31, 2014
630,071
$
20,267
$
(1,428,844)
$
30,915
$
(36)
$
-
$
-
$
-
$
16,902
$
Increased by:
Grants Appropriation
-
-
2,126,416
-
-
-
-
-
-
Statutory Excess
-
-
-
-
-
-
-
-
11,629
Appropriation Cancelled
-
-
4,183,887
-
-
-
-
-
-
Interest Earned
5,783
-
-
-
-
-
-
-
-
Revenue Realized
-
-
-
120,000
-
-
-
-
-
Cash Disbursements
16,124,858
132,921
12,814,130
29,403,094
577,840
5,270,368
410,735
2
-
16,760,712
153,188
17,695,589
29,554,009
577,804
5,270,368
410,735
2
28,531
Decreased by:
Interfund Revenue
630,714
-
-
-
-
-
-
-
-
Grant Revenue
-
-
2,126,416
-
-
-
-
-
-
Budget Appropriation - Matching
-
-
345,537
-
-
-
-
-
-
Receivable Cancelled
-
-
1,100,042
-
-
-
-
-
-
Reserve for Other
-
-
511
-
-
-
-
-
-
Budget Charge for Additional Note Payment
1,469
-
-
-
-
-
-
-
-
Cash Receipts
16,031,411
157,230
15,821,310
29,565,838
577,474
5,270,366
410,728
-
-
16,663,594
157,230
19,393,816
29,565,838
577,474
5,270,366
410,728
-
-
Balance: December 31, 2015
97,118
$
(4,042)
$
(1,698,227)
$
(11,829)
$
330
$
2
$
7
$
2
$
28,531
$
86
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE N. INTERFUND TRANSACTIONS (continued)
In addition to the Current Fund interfund activity noted on the previous page, the City also had the
following interfund activity and balances as of and for the year ended December 31, 2015:
General
Capital
Due to HUD Grants Fund at Dec. 31, 2014
353,734
$
Reimburse CDBG
353,737
Due to Capital Fund Fund at Dec. 31, 2015
(3)
$
Utility
Capital
Due to Utility Capital Fund at Dec. 31, 2014
451,800
$
Paid to Utility Operating Fund
140,206
Improvement Authorization
(160,199)
Due to Utility Capital Fund at Dec. 31, 2015
431,807
$
NOTE O. RELATED PARTY TRANSACTIONS
SHARED SERVICE AGREEMENTS
The Water/Sewer System
The City created the Bayonne Municipal Utilities Authority (the “BMUA”) by virtue of an ordinance
adopted on October 9, 1997. Prior to the creation of the BMUA, the City operated the Water System
together with the Sewer System throughout the City as a combined utility within the City’s Budget. As
described in Note A, the BMUA is considered a component unit of the City.
On November 17, 1997, the BMUA and the City executed an Interlocal Agreement as amended and
supplemented by Amendment No.1 dated August 1, 2000, and Amendment No. 2 dated April 11, 2001
(hereinafter referred to collectively as the “Interlocal Agreement”), which agreement provided for
among other things, the leasing of the Water/Sewer System to the BMUA for a term of up to 50 years.
In accordance with the terms of the Interlocal Agreement, the BMUA acquired the Water/Sewer System
from the City pursuant to a long-term lease for lease payments equal to $23,500,000 (the “Lease
Payments”) plus sufficient funds to retire all of the City’s outstanding Water/Sewer System debt of
$15,343,219 and reimburse the City for certain other costs incurred by the City with respect to the
Water/Sewer System. In addition, the water and sewer accounts receivable previously due to the City
were assigned to the BMUA.
87
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE O. RELATED PARTY TRANSACTIONS (continued)
SHARED SERVICE AGREEMENTS (continued)
The Water/Sewer System (continued)
On April 11, 2001, the City sold the water system assets and the sewer system assets to the BMUA for
consideration of $1.00 each system. Also on April 11, 2001, the City leased the aqueduct to the BMUA
for $28,000,000. The aqueduct consists of a force main that begins at the intersection of Kearny Avenue
and Belleville Turnpike in Kearny, New Jersey, including the pump house, garage and vault at Porte
Avenue, and interconnects with other systems at Kearny Avenue and Schuyler Avenue in Kearny, and
North Arlington, New Jersey and extends past the City’s border at Avenue B and West 56th Street to the
point where it connects with the Bayonne pump station. In accordance with the terms of the Interlocal
agreement, the lease term is for 50 years with an option for the BMUA to purchase a fee simple interest
in the aqueduct from the City for $1.00 at any time on or after the 20th anniversary of the agreement,
April 11, 2021.
The City also has a “Deficiency Agreement” with the BMUA, which is further described in Note S.
On August 6, 2012 the Bayonne Municipal Utilities Authority (the “BMUA”), approved the execution
of a concession agreement between the BMUA and Bayonne Water Joint Venture, LLC, a joint venture
between United Water and Kohlberg, Kravis, Roberts and Company (the “concessionaire”). Under the
terms of the agreement, the concessionaire will undertake all of the obligations for the operations,
maintenance and management of the BMUA’s water and sewer systems in accordance with applicable
law, provide for annual capital improvements, adhere to a schedule of rate increases and provide
compensation to the BMUA in amount sufficient to defease all of the outstanding debt of the BMUA
and pay for certain stranded costs. In exchange, the concessionaire shall retain all revenues from the
systems. During 2014, the City received an $8,850,000 concession fee from the BMUA/KKR
public/private partnership transaction. During 2015, the City budgeted and received $11,237,000 as final
payment of the concession agreement. The 2016 budget will include funds from BLRA land sales –
mostly from Harbor Station North sale of properties – to replace the revenues.
In December 2012, the City of Bayonne and the Bayonne MUA entered into a Concession Agreement
with Bayonne Joint Venture, LLC (“BJV”), a for-profit entity, whereby BJV acquired a 40 year
concession to use, operate, manage, construct, maintain and improve its water system. As such, BJV is
responsible for all expenses of operations of the Bayonne water system, including payments to the
Commission of its share of the operating expenses and debt service on behalf of Bayonne. Nonetheless,
under its water supply agreement, the City of Bayonne remains responsible to the Commission in case of
any shortfall of operating or debt service payments from BJV.
88
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE O. RELATED PARTY TRANSACTIONS (continued)
SHARED SERVICE AGREEMENTS (continued)
Local Redevelopment Authority
In September 1998, the City created a Local Redevelopment Authority (the “BLRA”) to oversee the
development of the Military Ocean Terminal. The Authority consists of seven members from various
segments of the Bayonne community, including two City Council members. The Military Ocean
Terminal was an Army base that was closed in September, 1999. The City assumed the role of caretaker
for the facility under a cooperative agreement with the Department of Defense as of October 1, 1999.
On October 1, 2001, the BLRA assumed ownership of the “clean” portions of the facility. On December
18, 2002, the remaining portion of the facility was turned over to the City. The BLRA has been awarded
a grant to “clean” this portion. The BLRA is in the process of marketing the facility for future
development. The site is now currently known as the Peninsula at Bayonne Harbor. In 2009, the first
residential development at the Peninsula at Bayonne Harbor, Alexan City View, opened its leasing
office and welcomed its first residents.
On May 25, 2005, the City passed a $20,000,000 Bond Ordinance providing for various infrastructure
improvements at the Peninsula. The BLRA, in turn, entered into a loan arrangement with the developer
of the Military Ocean Terminal to borrow $21,500,000 to pay the City for use by the City to fund an
ongoing structural budget deficit. The loan will be repaid by the BLRA upon the sale to the developer
of individual parcels of land in the redevelopment area. This financing structure allows the City,
through the BLRA, to effectively use the anticipated proceeds from the sale of the property for budget
relief while funding the infrastructure improvements over the useful life of such improvements. These
improvements are all to be made at the Peninsula at Bayonne Harbor and are being overseen by the
Bayonne Local Redevelopment Authority. The Authority has reimbursed the City the $20,000,000 for
the issuance of Bond Anticipation Notes.
The City also had a “Subsidy Agreement” with the BLRA, which is further described in Note S.
89
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE O. RELATED PARTY TRANSACTIONS (continued)
SHARED SERVICE AGREEMENTS (continued)
Local Redevelopment Authority (continued)
On August 14, 2013, the City adopted an ordinance for the dissolution of the Bayonne Local
Redevelopment Authority, appropriating $75,000,000 and authorizing not to exceed $75,000,000
principal amount of bonds or notes in connection therewith. Following the direction of the Local
Finance Board and after careful examination and analysis, the City has determined that it is in the best
interest of the residents of the City to dissolve the Authority.
N.J.S.A. 40A:12A-24 grants a municipality the power to dissolve its redevelopment agency by
ordinance, and transfer all of the redevelopment agency’s assets, liabilities and responsibilities to itself
in accordance with section 20 of the Local Authorities Fiscal Control Law, provided that the ordinance
makes adequate provision for the payment of all creditors or obligees of the authority and further makes
adequate provision for the assumption of services provided by the authority which are necessary for the
health, safety and welfare of the recipients of such services.
The City, as part of the dissolution of the Authority and in connection with the provision for the
payment of all creditors or obligees of the Authority, had determined to (i) initially assume the BLRA
Recourse Debt and (ii) permanently replace the Authority as “Issuer” of such Non-recourse debt, subject
to the rights, responsibilities, obligations and limitation of “Issuer” under each bond resolution, project
note resolution, loan agreement, bond, note or mortgage authorizing such Non-recourse debt.
Parking Authority
The Bayonne Parking Authority (the “BPA”) was created by an ordinance of the City on December 17,
1958 pursuant to the provisions of the Parking Authority Laws, N.J.S.A. 40:11A et seq. As described in
Note A, the BPA is considered a component unit of the City.
90
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE O. RELATED PARTY TRANSACTIONS (continued)
SHARED SERVICE AGREEMENTS (continued)
Parking Authority (continued)
Under the terms of the shared service agreement, as amended on June 30, 2011, the City shall furnish
various levels of parking enforcement officers who will, at the direction of the Chief of Police, perform
patrols of all public and City premises and enforce all parking laws, ordinances and regulations of the
City and the State of New Jersey.
The BPA was responsible to reimburse the City, on a quarterly basis or as otherwise agreed, for all
payroll, social security, withholding, unemployment, medical benefits and pension if applicable, liability
insurance, workers’ compensation insurance, disability insurance and any and all other expenses related
to employee compensation and benefits for those City personnel assigned to enforcement of parking
regulations. The BPA must also share with the City $5 for each adjudicated summons in violations of
the residential permit parking ordinances, overtime meter ordinances and street sweeper ordinances.
Effective January 1, 2012, the BPA was officially dissolved and the Bayonne Parking Utility was
created.
Other Shared Service Agreements
The City has an agreement with the Bayonne Housing Authority (the “BHA”) in which the City is to
receive reimbursement for garbage contracts, dumpster fees and forestry expenses. During the year
ended December 31, 2015 and 2014, the City received $120,000, respectively, for such reimbursements.
As of December 31, 2015 and 2014, the City has receivables from the BHA of $395,400 and $590,400,
respectively, for prior year accrued budget revenues. This receivable is part of the revenue accounts
receivable identified on the balance sheet and has been fully reserved. As described in Note A, the BHA
is considered a component unit of the City.
BAYONNE BOARD OF EDUCATION
As described in Note D, the Bayonne Board of Education is a Type I School District, therefore, bonds
and notes authorized by the Board of Education are general obligations of the City and are reported on
the balance sheet of the City’s General Capital Fund and are accordingly included in the summary of
municipal debt. The City budgets the principal and interest payments of the Board of Education’s
obligations as they become due. These obligations are funded by the City through an amount to be
raised by taxation called “addition to local district school tax”, less any regular school debt service aid
91
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE O. RELATED PARTY TRANSACTIONS (continued)
BAYONNE BOARD OF EDUCATION (continued)
received from the State of New Jersey. As of January 2015, Bayonne Board of Education is now
classified as a Type II School District. For the year ended December 31, 2015 and 2014, the City’s
budget included the following debt service requirements of the Board of Education and corresponding
anticipated revenues:
Dec. 31, 2015
Dec. 31, 2014
Debt Service Requirements of the Board of Education:
Payment of Bond Principal
5,900,000
$
6,001,000
$
Payment of School Promissory Note Principal
-
200,000
Interest on Bonds
3,790,000
4,161,000
Interest on Notes
47,000
138,000
9,737,000
10,500,000
Less: Applicable Revenues Anticipated
Regular School Debt Service Aid
-
202,663
Balance for Support of Board of Education:
Addition to Local District School Tax
9,737,000
$
10,297,337
$
Year Ended
The City’s Parking Utility Fund has a payable due to the Board of Education of $450,000 for the
acquisition of a parking lot.
NOTE P. REVENUE ACCOUNTS RECEIVABLE
Revenue accounts receivable are fully reserved receivables due from entities for revenues anticipated in
support of the City’s budget. The following table illustrates activity of the beginning and ending
revenue accounts receivable balances for the year ended December 31, 2015:
92
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE P. REVENUE ACCOUNTS RECEIVABLE (continued)
Balance
Current Year
Balance
Dec. 31, 2014
Accruals
Collections
Cancelled
Dec. 31, 2015
Fines and Costs - Municipal Court
150,582
$
1,944,746
$
1,944,746
$
-
$
150,582
$
Payments in Lieu of Taxes
Bayonne Housing Authority
350,000
604,051
604,051
-
350,000
BHA Post Road Gardens
57,192
-
-
-
57,192
Senior Horizons of Bayonne
49,641
59,411
59,411
-
49,641
Bayonne Community Action
7,000
7,819
7,819
-
7,000
Reimbursement from:
Bayonne Housing Authority (1):
Garbage Contract
115,000
-
-
115,000
-
Dumpsters
5,400
-
-
5,400
-
Other
100,000
-
-
100,000
-
Forestry Expenses
175,000
-
-
-
175,000
Bayonne Board of Education (1)
1,137,500
-
-
1,137,500
-
2,147,315
$
2,616,027
$
2,616,027
$
1,357,900
$
789,415
$
(1) The receivables are further discussed in Note O.
NOTE Q. ECONOMIC DEPENDENCY
Major Taxpayers
The City does not have significant economic dependence on any one taxpayer. However, the ten largest
taxpayers of the City as listed in the following table comprise 10% of the City’s total tax assessment.
Name
Assessment
Bayonne Industries Inc / IMTT
118,102,000
$
Bayonne Auto Terminal, LLC
23,095,700
Gordon Terminal Service Company of NJ, Inc
13,383,500
Texaco Downstream Properties, Inc.
13,085,800
Exxon Corporation
12,440,000
NJIND Hook Road, LLC
9,000,000
MPT of Bayonne, LLC
8,000,000
Buckeye Bayonne Terminal, LLC
7,800,000
South Cove Development, LLC
7,294,100
ALD Realty
7,148,050
219,349,150
$
Top 10 Taxpayers
93
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE Q. ECONOMIC DEPENDENCY (continued)
Peninsula at Bayonne Harbor
Since the BLRA was dissolved, the City will be receiving annual payments from the Port Authority of
$5,000,000 in 2015 and annual payments of $5,000,000 from 2016 through 2033.
The City plans to make use of new funding from Spectra Energy, Bayonne Energy Center, new Port
Authority PILOTs, fund balance, revenues from the long term lease of the water/sewer system and the
continued sale of property and development at the Peninsula at Bayonne Harbor to provide replacement
revenues.
Taking into consideration legislation capping the City’s ability to increase its tax levy, the impact on the
City’s operations would be significant should the City be unable to obtain adequate replacement
revenues.
In the 2015 budget, the City included the balance of $11,237,000 in BMUA concession agreement
revenues, a $2,800,000 Capital Growth Transaction, which is a one-time revenue, and budgeted
$6,000,000 in surplus which the City believes will be regenerated through its 2015 operations. It is
anticipated that sales of other properties will be used to replace this revenue source in calendar year
2016.
State Aid
The City is also a recipient of State Aid. During the year ended December 31, 2015 and 2014, State Aid
accounted for 5.7% and 6.6%, respectively, of the support the City’s budget. Significant changes in
State Aid policy, in conjunction with legislation capping increases to the tax levy, could further impact
the City’s operations.
94
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE R. LEASE/LOAN COMMITMENTS
In 2004, the City entered into a financing lease with the Hudson County Improvement Authority in the
amount of $10,000,000 to fund improvements to the City’s public works garage. On June 24, 2015 the
City refunded the remaining $8,300,000 and entered into a new financing lease with the Hudson County
Improvement Authority in the amount of $8,850,000. The minimum future lease payments are as
follows:
Year Ended
December 31,
Principal
Interest
2016
350,000
$
345,837
$
2017
325,000
376,150
2018
330,000
366,400
2019
340,000
356,500
2020
355,000
346,300
2021-2025
1,980,000
1,507,781
2026-2030
2,450,000
1,032,862
2031-2035
2,450,000
337,819
8,580,000
$
4,669,649
$
On May 15, 2012, the City entered into a loan agreement with the Bayonne City Federal Credit Union
for a fire truck. The loan was in the amount of $177,027.51 bearing an interest rate of 5.25% for 10
years. The minimum future loan payments are as follows:
Year Ended
December 31,
Principal
Interest
2016
16,666
$
6,125
$
2017
17,581
5,211
2018
18,526
4,265
2019
19,522
3,269
2020
20,565
22,226
2021-2022
31,051
1,236
123,911
$
42,332
$
95
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE R. LEASE/LOAN COMMITMENTS (continued)
On August 9, 2012, the City entered into a loan agreement with the Bayonne City Federal Credit Union
for a rescue vessel. The loan was in the amount of $77,186.80 bearing an interest rate of 5.25% for 10
years. The minimum future loan payments are as follows:
Year Ended
December 31,
Principal
Interest
2016
7,177
$
2,768
$
2017
7,571
2,373
2018
7,979
1,966
2019
8,408
1,537
2020
8,856
1,088
2021-2022
15,837
737
55,828
$
10,469
$
NOTE S. CONTINGENT LIABILITIES
Deficiency Agreement
The City’s Interlocal Agreement with the BMUA described in Note O authorizes a Deficiency
Agreement, which was executed on November 17, 1997. The BMUA is a component unit of the City as
described in Note A.
The BMUA and the City have entered into the Deficiency Agreement in order to, among other things,
provide security to the holders of the obligations of the BMUA, which were issued for or with respect to
the Water/Sewer System. Pursuant to its terms, the Deficiency Agreement will remain in full force and
effect as long as any obligations of the Authority, which are entitled to the benefits thereof, remain
outstanding. The BMUA shall impose and collect annual charges from the City in an amount which is
sufficient to provide for, after taking into account all other moneys of the BMUA, deficiencies in funds
of the BMUA which are needed to pay for the BMUA’s expenses of (i) operation and maintenance of
the Water/ Sewer System, and the principal of and interest on all Bonds as the same shall be due, (ii)
maintenance of reserve or sinking funds as may be required by the terms of any contract of the BMUA
or any Bond Resolution or as may be necessary or desirable by the BMUA, and (iii) compliance with the
terms of any Bond Resolution and with the Act.
From its inception through December 31, 2015, the agreement has never been called upon by the
BMUA.
96
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE S. CONTINGENT LIABILITIES (continued)
Subsidy Agreement
The City’s Interlocal Agreement with the BLRA described in Note O authorized a Subsidy Agreement,
which was executed in June of 2003 and ended when the BLRA was dissolved in August of 2013.
Pursuant to the terms of the Subsidy Agreement the City agreed to pay to the BLRA, prior to each fiscal
year an amount, if any, which shall be equal to the excess, as specified in an Accountant’s certificate, of:
(A) The sum of all the amounts necessary in the succeeding fiscal year: (1) to pay or
provide for the expenses of operation and maintenance of the Redevelopment Projects;
(2)to pay or provide for the principal or redemption premium of any Bonds; (3)to pay or
provide for any interest becoming due on any Bonds; (4) to maintain such reserves or
sinking funds to provide for expenses of operation and maintenance of the Redevelopment
Projects or principal or redemption premium of and interest on any Bonds; and (5) to
provide other amounts as may be required by the terms of any contract of the Agency or
Bond Resolution or as deemed necessary or desirable by the Authority;
(B) The sum of the following amounts to the extent available for operating expenses of the
BLRA or Debt Service on any Bonds: (1) all revenues of the BLRA; (2) the proceeds of
any Bonds; (3) the proceeds of insurance; (4) interest received on investments funds held
for the benefit or security of the BLRA or the holders of any Bonds; (5) contributions and
grants for the account of the BLRA; and (6) reserves on hand.
In addition to the amounts required to be paid by the City to the BLRA as described above, the City was
required to pay the BLRA, upon 15 days notice, any amount needed to pay the principal and redemption
premium and/or interest on any Bonds to the extent such funds were not otherwise available from the
BLRA with respect thereto.
If any payment due to the BLRA from the City remained unpaid for 30 days following its due date, the
City would have been charged with and would have had to pay to the BLRA interest on the amount
unpaid from its due date until paid, at a rate per annum equal to 1% in excess of the highest rate of
interest per annum which the BLRA is then paying with respect to any of its Bonds unless waived by the
BLRA.
From its inception through the date the BLRA was dissolved, the agreement was never called upon by
the BLRA.
97
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE S. CONTINGENT LIABILITIES (continued)
Redeveloper Agreement
On February 20, 2013, the City adopted an ordinance approving a financial instrument and authorizing
the execution thereof and other applicable documents related to the issuance by the City of Bayonne of
$17,500,000 Redevelopment Area Bonds (non-recourse to the full faith and credit of the City of
Bayonne) and determining various other matters in connection therewith. This ordinance was adopted to
assist Prince Holdings of Bayonne Urban Renewal Enterprise, LLC (the “Redeveloper”) in financing the
development, design, finance and construction of approximately 250,000 square feet of industrial
warehouse space and associated loading docks and parking, infrastructure improvements and related site
work (the “Project”). To assist the Redeveloper in financing the Project costs as set forth in the
redevelopment agreement, the City, as redevelopment entity, will issue bonds pursuant to the
Redevelopment Area Bond Financing Law, N.J.S.A. 40A:12-64, et seq. Pursuant to the Bond Financing
Law, the City intends to pledge, to the extent required, the annual service charges paid to the City by the
Redeveloper for debt service on the Bonds provided, however, that five percent (5%) of the annual
service charges shall not be subject to such pledge in accordance with N.J.S.A. 40A:20-12 (the “County
Share”). The City and the Redeveloper have agreed that any portion of the annual service charges paid
by the Redeveloper to the City in excess of the amount needed to pay the County Share and Debt
Service on the bonds shall be returned to the City and retained and used by the City for any lawful
purpose.
Tax Appeals
The City is a defendant in various tax appeals that they are defending vigorously. The tax appeals it is
currently defending are not unusual for a municipality of its size. In the past, the City has funded these
appeals through various means, including utilizing the reserve for tax appeals account, which is funded
through budget appropriations, issuing refunding notes to pay for the appeals, direct appropriations and
charges to operations. The Local Finance Board has allowed the City to issue tax refunding obligations
to finance the tax refunds. They are renewable annually for five to seven years after their date of
issuance, with the amortization schedule approved by the Local Finance Board.
During the year ended December 31, 2015, the City renewed previously issued tax refunding notes.
Also during the year ended December 31, 2015, the City funded additional appeals by appropriating and
expending $200,000 in the current budget and charging $2,772,747 to improvement authorizations in the
general capital fund.
98
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE S. CONTINGENT LIABILITIES (continued)
Arbitrage Rebate
The City is subject Section 148 of Internal Revenue Code, which was enacted to minimize the arbitrage
benefits from investing gross proceeds of tax-exempt bonds in higher yielding investments and to
remove the arbitrage incentives to issue more bonds, to issue bonds earlier, or to leave bonds
outstanding longer than is otherwise reasonably necessary to accomplish the governmental purposes for
which the bonds were issued.
Affordable Housing
The State has passed legislation which would seize uncommitted affordable housing funds from
municipalities. After rounds of appeals and court orders, the Appellate Division has ruled that the State
can seize such funds, assuming proper notice and the ability for municipalities to contest the State’s
findings are provided. The extent of the City’s Affordable Housing funds subject to seizure by the State,
if any, is uncertain. As of December 31, 2014 and 2013, the City had balances of $1,196,646 and
$1,150,079, respectively, in its Affordable Housing Trust.
Grant Programs
The City participates in several federal and state financial assistance grant programs. Entitlement to the
funds is generally conditional upon compliance with terms and conditions of the grant agreements and
applicable regulations, including the expenditures of funds for eligible purposes. The state and federal
grants received and expended in the year ended December 31, 2015 were subject to the Uniform
Guidance and NJ OMB Circular 15-08 and 2014 were subject to U.S. OMB Circular A-133 and State of
New Jersey OMB Circular 04-04 which mandates that grant revenues and expenditures be audited in
conjunction with the City’s annual audit. In addition, these programs are also subject to compliance and
financial audits by the grantors or their representatives.
As the result of an audit of the City’s Community Development Block Grant (CDBG), the U.S.
Department of Housing and Urban Development (HUD) notified the City during the transition year
ended December 31, 2011 that certain costs of the program would be disallowed. The City was required
to re-program an amount equal to the disallowed costs, $515,601, from the City’s own resources and
operations.
99
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE S. CONTINGENT LIABILITIES (continued)
Grant Programs (continued)
In addition, documentation supporting the costs of CDBG program’s 2012 expenditures were not
available for audit review as said documents were seized by federal law enforcement agencies for
confidential investigation. As such, our audits questioned $2,411,226 of combined CDBG and
emergency shelter grant expenditures. As of the date of this audit, the City’s liability, if any, cannot be
determined.
Litigation
The City is a defendant in various lawsuits, none of which is unusual for a municipality of its size and
should be adequately covered by the City's insurance program, defense program or by the City directly
and which may be settled in a manner satisfactory to the financial stability of the City. It is anticipated
that any judgments in excess of insured coverage would be paid by the City through future taxation or
future debt borrowing.
The following cases have been noted by both outside and City Counsel as having potentially material
exposure to the City.
Rios v. City of Bayonne, et al- Plaintiff claims excessive use of force by members of the Bayonne Police
Department. The City believes it has a viable defense. Defense counsel filed a motion to dismiss which
was granted in part and denied in part. Paper discovery was concluded under the direct supervision of
the Court. Deposition discovery was commenced and has not yet been concluded. The demand on the
case is $1.6 million. No monetary counter-offer has been made but this matter has been stayed while the
parties explore a possible settlement. The range of potential loss could be between $30,000 and
$100,000, however, as a result of extensive investigation and thereafter the taking of the Plaintiff’s
deposition, the Plaintiff was unable to prove/establish any present or future loss. This case was settled in
December 2015. The City contributed $150,000 toward the settlement, which will be billed to the City
by the NJIIF in the normal course of 2016.
Suarez v. City of Bayonne – this matter involves claims of excessive force and failure to provide medical
treatment against the City of Bayonne and two individual officers employed by the City. The matter was
scheduled for an in person settlement conference before a judge on January 6, 2016, however, nothing
was resolved from the hearing. No monetary estimate of settlement has been provided at this time.
100
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE S. CONTINGENT LIABILITIES (continued)
Litigation (continued)
In addition, the City, its officers and employees are defendants in a number of lawsuits including, but
not limited to, lawsuits alleging employment discrimination and alleged violations of civil rights.
NOTE T. SUBSEQUENT EVENTS
Subsequent events have been evaluated through January 30, 2017 the date which the financial
statements were available to be issued. Material events are disclosed as follows:
Issuance of Notes
On January 20, 2016, the City adopted a refunding bond ordinance providing for the refunding of certain
outstanding general improvement bonds of the City dated June 24, 2009 and school bonds of the City
dated December 22, 2004 to provide debt service savings and authorized the issuance of not to exceed
$80,000,000 aggregate principal amount of general obligation refunding bonds of the City.
On March 22, 2016 the City sold $66,000,000 qualified general improvement refunding bonds at various
interest rates ranging from 2% to 5%. These bonds were issued to advance refund and redeem a portion
of certain outstanding general improvement bonds of the City dated June 24, 2009.
On March 22, 2016, the City also sold $3,425,000 school refunding bonds at various interest rates
ranging from 2% to 4%. These bonds were issued to advance refund and redeem a portion of school
bonds of the City dated December 15, 2004.
On March 16, 2016, the City adopted a capital improvement ordinance to provide for funding for the
improvement of Clark park in the amount of $390,000. Funding to be provided through the Community
Development Block Grant in the amount of $190,000 and Developers Contribution Fund in the amount
of $200,000.
On April 20, 2016, the City adopted a resolution authorizing the issuance of not to exceed $12,000,000
tax anticipation notes. $10,000,000 of notes were issued on July 6, 2016 maturing September 6, 2016.
The notes shall bear interest at the rate of 1.98% per annum.
On April 20, 2016, the City adopted a capital improvement ordinance to provide funding for the
improvement of 16th street park in the amount of $600,000. Funding be provided by FEMA grant #4572
in the amount of $540,000 and capital fund balance in the amount of $60,000.
101
CITY OF BAYONNE
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE T. SUBSEQUENT EVENTS (continued)
On June 17, 2016 the City sold the following notes (through the HCIA pooled note financing program):
$27,042,000 of County-Guaranteed Pooled Notes at 2.00%
$48,845,000 of County-Guranteed Pooled Notes (Federally Taxable) at 2.50%
On December 14, 2016, a bond ordinance was adopted providing for the acquisition of and the payment
of a portion of the purchase price of real property and various 2016 capital improvements appropriating
$4,730,000 therefore and authorizing the issuance of $4,500,000 bonds or notes of the City to finance
part of the costs thereof.
102
SUPPLEMENTARY DATA – CURRENT FUND
Exhibit A
Sheet 1 of 2
CITY OF BAYONNE
CURRENT FUND
AS OF DECEMBER 31, 2015 AND 2014
COMPARATIVE SCHEDULE OF ASSETS, LIABILITIES AND FUND BALANCE
2015
2014
Assets
Current Fund:
Cash and Cash Equivalents
22,097,289
$
18,324,007
$
Cash - Change Funds
1,050
1,050
Subtotal
22,098,339
18,325,057
Intergovernmental Receivable:
State Aid
2,888,631
3,558,976
24,986,970
21,884,033
Receivables and Other Assets with Full Reserves:
Delinquent Property Taxes
748,057
841,686
Tax Title Liens
654,855
617,705
Property Acquired for Taxes at Assessed Valuation
6,474,000
6,474,000
Revenue Accounts Receivable
789,415
2,147,315
Other Accounts Receivable
-
421,618
Interfunds Receivable:
Dog License Trust Fund
28,531
16,902
Insurance Trust Fund
2
-
Tax Lien Redemption Trust Fund
2
-
Housing and Urban Development Grant Trust Fund
-
20,267
Other Trust Fund
-
30,915
Payroll Agency Fund
7
-
Due from Capital Fund
97,118
630,071
Parking Utility Fund
330
-
Total Receivables with Full Reserve
8,792,317
11,200,479
Deferred Charges:
Loans Payable-Prior Year
202,391
202,391
Fund Old Capital Ordinances
-
50,114
Prior Year Bills
-
4,531
Total Deferred Charges
202,391
257,036
Total Current Fund Assets
33,981,678
33,341,548
Federal and State Grant Fund:
Federal and State Grants Receivable
6,035,695
21,175,072
Due from Current Fund
1,698,227
1,428,844
Total Federal and State Grant Fund Assets
7,733,922
22,603,916
Total Assets
41,715,600
$
55,945,464
$
103
Exhibit A
Sheet 2 of 2
CITY OF BAYONNE
CURRENT FUND
AS OF DECEMBER 31, 2015 AND 2014
COMPARATIVE SCHEDULE OF ASSETS, LIABILITIES AND FUND BALANCE
2015
2014
Liabilities, Reserves and Fund Balance
Current Fund:
Appropriation Reserves
2,304,820
$
3,328,437
$
Encumbrances
1,582,091
1,470,979
Contracts Payable
688,623
727,342
Interfunds Payable:
Federal and State Grants Fund
1,698,227
1,428,844
Other Trust Fund
11,829
-
Housing and Urban Development Grant Fund
4,042
-
Parking Utility Fund
-
36
Due to State of New Jersey:
Veteran and Senior Citizen Deductions
22,222
15,810
Tax Overpayments
2,956,296
2,859,063
Prepaid Taxes
770,182
681,936
Prepaid PILOT
-
754,354
Due County for Added and Omitted Taxes
23,387
94,880
Special Improvement District Taxes Payable
494,558
364,928
Reserve for Other
3,528,527
731,108
Reserve for Urban Enterprise Funds
5,824,550
4,616,099
19,909,354
17,073,816
Reserve for Receivables
8,792,317
11,200,479
Fund Balance
5,280,007
5,067,253
Total Current Fund Liabilities, Reserves and Fund Balance
33,981,678
33,341,548
Federal and State Grant Fund:
Encumbrances Payable
229,428
1,417,495
Reserve for Federal and State Grants:
Appropriated
6,909,099
20,246,371
Unappropriated
595,395
940,050
Total Federal and State Grant Fund Liabilities and Reserves
7,733,922
22,603,916
Total Liabilities, Reserves and Fund Balance
41,715,600
$
55,945,464
$
104
Exhibit A-1
Sheet 1 of 2
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015 AND 2014
COMPARATIVE SCHEDULE OF OPERATIONS AND CHANGES IN FUND BALANCE
Year Ended
Year Ended
Dec. 31, 2015
Dec. 31, 2014
Revenue and Other Income Realized:
Fund Balance Utilized
6,421,172
$
14,900,000
$
Miscellaneous Revenue Anticipated
43,588,535
58,659,287
Receipts from Delinquent Taxes
40,182
68,683
Receipts from Current Taxes
171,699,645
167,331,053
Non-Budget Revenues
2,125,715
2,269,943
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
2,247,007
1,234,546
Dog License Trust Fund Statutory Excess
11,629
-
Prior Year Revenue Accounts Receivable Realized
-
2,233,732
Grant Appropriations Cancelled
4,183,887
-
Prior Year Interfunds Returned
51,182
125,564
Reserves for Other Cancelled
46,152
-
Cancelled old outstanding checks
261,660
9,036
Miscellaneous Adjustments
1,132
19,598
230,677,898
246,851,442
Expenditures
Budgetary and Emergency Appropriations:
Appropriations within "CAPS"
Operations
Salaries and Wages
55,946,525
56,183,500
Other Expenses
32,028,634
31,947,996
Deferred Charges and Statutory Expenditures
14,151,031
13,168,650
Appropriations Excluded from "CAPS"
Operations
Salaries and Wages
639,244
712,578
Other Expenses
3,832,911
22,995,956
Capital Improvements
-
200,000
Municipal Debt Service
13,163,184
12,479,728
Deferred Charges
50,114
550,000
Type 1 School District Debt
9,690,883
10,497,852
Reserve for Uncollected Taxes
2,600,000
2,720,000
132,102,526
151,456,260
County Tax
28,732,549
27,696,235
Local District School Tax
60,283,361
59,392,474
Special Improvement District Tax
290,000
290,000
Interfunds Advanced Originating in Current Year
109,731
698,155
Revenue Account Receivables Reserved
-
2,147,315
105
Exhibit A-1
Sheet 2 of 2
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015 AND 2014
COMPARATIVE SCHEDULE OF OPERATIONS AND CHANGES IN FUND BALANCE
Year Ended
Year Ended
Dec. 31, 2015
Dec. 31, 2014
Refund of Prior Year Taxes
1,425,763
-
Refund of Prior Year Revenues
-
285,155
Appropriated Grants Receivable Cancelled
1,100,042
-
Other Charges to Income
Contracts Payable
-
645,593
Prepaid PILOT
-
754,345
224,043,972
243,365,532
Excess in Revenue
6,633,926
3,485,910
Fund Balance, Beginning of Year
5,067,253
16,481,343
11,701,179
19,967,253
Decreased by:
Utilized as Anticipated Revenue
6,421,172
14,900,000
Fund Balance, End of Year
5,280,007
$
5,067,253
$
106
Exhibit A-2
Sheet 1 of 2
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF REVENUES AND OTHER CREDITS TO INCOME
Adopted
N.J.S.A.
Excess or
Budget
40A:4-87
Realized
(Deficit)
SURPLUS:
Surplus Anticipated
6,421,172
$
-
$
6,421,172
$
-
$
MISCELLANEOUS REVENUES:
LOCAL REVENUES
Licenses:
Alcoholic Beverage
78,000
-
76,266
(1,734)
Other
169,000
-
150,102
(18,898)
Fees and Permits
944,000
-
1,075,291
131,291
Fines and Costs - Municipal Court
1,859,000
-
1,944,746
85,746
Interest and Costs on Taxes
450,000
-
333,545
(116,455)
Interest on Investments and Deposits
56,000
-
36,863
(19,137)
Payments in Lieu of Taxes:
Bayonne Housing Authority
290,000
-
604,051
314,051
Senior Horizons of Bayonne
37,000
-
59,411
22,411
Port Authority
2,360,000
-
2,919,808
559,808
Bayonne Community Action
6,750
-
7,819
1,069
Bayonne Energy Center
2,150,000
-
1,508,445
(641,555)
Alexan City View
1,600,000
-
1,106,455
(493,545)
Platty Kill Manor
180,000
-
180,000
-
Rents - City Owned Property
42,000
-
124,267
82,267
Verizon Franchise Fee
247,541
-
247,541
-
10,469,291
-
10,374,610
(94,681)
STATE AID WITHOUT OFFSETTING APPROPRIATIONS
Consolidated Municipal Property Tax Relief Act
1,922,857
-
1,922,857
-
Energy Receipts Tax (PL 1997, Ch. 162 & 167)
6,906,944
-
6,906,944
-
8,829,801
-
8,829,801
-
SHARED SERVICE AGREEMENTS
Housing Authority Garbage Contract
120,000
-
-
(120,000)
120,000
-
-
(120,000)
PUBLIC AND PRIVATE REVENUES
Federal Grants:
Reimbursement of Police Salaries
54,619
-
54,619
-
Bullet Proof Vests
1,072
40,373
41,445
-
Assistance to Firefighters Grant - ARRA
-
45,455
45,455
-
Federal Equitable Sharing -
Reimbursement Police Department
82,289
-
82,289
-
2015 Port Security Grant
-
25,000
25,000
-
Customs and Border Control
119,358
55,570
174,928
-
UASI Training Reimbursement Fund
129,970
-
129,970
-
Area Plan Grant -
Older American Act of 1965 - Title III
147,264
-
147,264
-
Congregate Meals Program
469,124
-
469,124
-
Home Delivered Meals
-
10,000
10,000
-
Emergency Management Assistance
-
10,000
10,000
-
107
Exhibit A-2
Sheet 2 of 2
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF REVENUES AND OTHER CREDITS TO INCOME
Adopted
N.J.S.A.
Excess or
Budget
40A:4-87
Realized
(Deficit)
PUBLIC AND PRIVATE REVENUES (Continued)
State Grants:
Bureau of Housing Inspection
66,858
-
66,858
-
Municipal Alliance Grant
30,942
54,448
85,390
-
Municipal Aid Grant
-
327,592
327,592
-
ESL Grant Cruise Foundation
-
5,000
5,000
-
Body Armor Replacement Fund
-
30,494
30,494
-
Pedestrian Safety Enforcement and Education
9,400
-
9,400
-
Drunk Driving Enforcement Fund
5,760
5,760
-
Police Overtime - DMV
139,715
-
139,715
-
Bayonne Housing Authority Police Grant
260,085
-
260,085
-
Reimbursement - Citywide Communications
-
6,028
6,028
-
1,516,456
609,960
2,126,416
-
Other Items:
Private Contributions for Public Events
500
-
500
-
Ground Restoration
40,894
-
40,894
-
NJ Turnpike Shuttle Service
1,620
-
1,620
-
Donation-Recreation Department
4,939
-
4,939
-
Poster Contest Donations
12,249
-
12,249
-
1,576,658
609,960
2,186,618
-
OTHER SPECIAL ITEMS
Royal Carribean Cruise Port
1,100,000
-
-
(1,100,000)
BHA-Reimbursement Forestry Expenses
50,000
-
-
(50,000)
Debt Service Reimbursement-Empire Golf
185,000
-
216,998
31,998
Indirect Cost Reimbursement-UCC
120,000
-
120,000
-
Uniform Fire Code Inspection Fees
105,000
-
110,976
5,976
Parking Tax
485,000
-
534,919
49,919
Spectra Energy
2,135,000
-
1,860,326
(274,674)
Port Authority Land Payment
5,000,000
-
5,000,000
-
BMUA Concession Fee
11,237,000
-
11,237,179
179
Capital Growth Transaction
2,378,828
-
2,378,828
-
Uniform Fire Safety Act
115,070
-
104,326
(10,744)
Public Works Reimbursement
3,240
-
3,240
-
Interfund Receivable - Due from Capital Fund
630,714
-
630,714
-
23,544,852
-
22,197,506
(1,347,346)
Total Miscellaneous Revenues
44,540,602
609,960
43,588,535
(1,562,027)
RECEIPTS FROM DELINQUENT TAXES:
210,000
-
40,182
(169,818)
Subtotal - General Revenues
51,171,774
$
609,960
$
50,049,889
$
(1,731,845)
$
AMOUNT TO BE RAISED BY TAXES FOR SUPPORT OF MUNICIPAL BUDGET:
Local Tax Incl. Reserve for Uncollected Taxes
69,121,442
-
70,886,422
1,764,980
Minimum Library Tax
1,770,313
-
1,770,313
-
Addition to Local District School Tax
9,737,000
-
9,737,000
-
Total Amount to be Raised by Taxes
80,628,755
-
82,393,735
1,764,980
Total Budget Revenues
131,800,529
609,960
132,443,624
33,135
Non-Budget Revenues
-
-
2,125,715
2,125,715
Total General Revenues
131,800,529
$
609,960
$
134,569,339
$
2,158,850
$
108
Exhibit A-2a
Allocation of Current Tax Collections:
Current Year Taxes Collected in Prior Year
681,936
$
Current Year Taxes Collected in Current Year
168,108,080
State Share of Sr. Citizens' & Veterans' Deductions
309,629
Current Taxes Realized in Cash
169,099,645
$
Add: Appropriation for "Reserve for Uncollected Taxes"
2,600,000
171,699,645
Allocated to:
School Taxes
60,283,361
County Taxes
28,732,549
Special Improvement District Taxes
290,000
Total Allocated to School, County and Special District Taxes
89,305,910
Amount for Support of Municipal Budget Appropriations
82,393,735
$
Receipts from Delinquent Taxes:
Delinquent Taxes Collected
40,182
$
Tax Title Liens Collected
-
Total Receipts from Delinquent Taxes
40,182
$
Miscellaneous Revenues Anticipated:
Accrual per Revenue Accounts Receivable
32,632,318
$
State Aid
8,829,801
State and Federal Grants
2,126,416
Total Miscellaneous Revenues Anticipated
43,588,535
$
FUND BALANCE
6,421,172
$
Total Realized Budget Revenues
132,443,624
$
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF REVENUES -
ANALYSIS OF BUDGETED REVENUES
109
Exhibit A-2b
Miscellaneous Revenue not Anticipated:
Port Authority Reimbursement
844,445
$
Vendor Refunds
87
Restitution - Pedevilano
468
Fidelco
50,000
Delinquent Tax Municipal Lien
618
Purchase Easement 301.02
20,000
Tagliareni PILOT
21,982
Silk Lofts
42,468
5 Year PILOTS
82,196
NJ Turnpike Shuttle Service Reimbursement
2,430
Temporary Fire House Reimbursement
155
Reimbursement Public Works Salaries
27,180
FSA Vantage Point
13,758
Bond Refinancing Savings
129,703
Tax Levy Premium
401,000
Refund for Sales Tax Credit
478
Municipal Incentive Rebate Program
6,743
Premium on Note Sale
116,048
Hurricane Sandy-FEMA
110,055
Prince Holding PILOT
155,000
Homestead Rebate Mailing
2,201
Various Unanticipated PILOT Payments
77,498
Cashier Unallocated
35
Miscellaneous
14,846
Administrative Payment - Sr. Citizen and Veteran Deductions
6,321
2,125,715
$
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF REVENUES -
ANALYSIS OF NON-BUDGET REVENUES
110
Exhibit A-3
Sheet 1 of 10
Appropriations
Expended
Adopted
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
(A) Operations - within "CAPS"
Office of the Mayor
Salaries and Wages
360,000
$
360,000
$
359,771
$
-
$
229
$
-
$
Other Expenses
14,000
14,000
13,618
361
21
-
Planning Board
Other Expenses
50,000
45,000
16,813
3,194
24,993
-
Board of Adjustment
Other Expenses
28,000
28,000
14,403
2,500
11,097
-
Alcohol Beverage Control
Other Expenses
1,000
1,000
289
-
711
-
Environmental Commission
Other Expenses (N.J.S.A. 40:56A-1)
1,000
1,000
-
-
1,000
-
Rent Control Office
Salaries and Wages
15,000
15,000
15,000
-
-
-
Other Expenses
19,000
19,000
6,433
12,530
37
-
Business Administrator's Office
Salaries and Wages
525,000
467,000
464,740
-
2,260
-
Other Expenses
785,000
967,000
854,989
71,129
40,882
-
Bayonne Economic Opportunity Foundation
Other Expenses (N.J.S.A. 40:190-4)
22,500
22,500
22,500
-
-
-
Personnel Department
Salaries and Wages
85,000
88,325
87,739
-
586
-
Telephone Expenses
125,000
125,000
107,496
13,168
4,336
-
Municipal Council
Salaries and Wages
166,000
163,000
161,430
-
1,570
-
Other Expenses
4,000
4,000
1,826
186
1,988
-
Budget & Accounting Fees
75,000
65,000
65,000
-
-
-
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF EXPENDITURES AND OTHER CHARGES TO INCOME
111
Exhibit A-3
Sheet 2 of 10
Appropriations
Expended
Adopted
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF EXPENDITURES AND OTHER CHARGES TO INCOME
(A) Operations - within "CAPS" - (continued)
City Clerk's Office
Salaries and Wages
299,000
$
323,000
$
322,429
$
-
$
571
$
-
$
Other Expenses
32,000
42,000
34,709
120
7,171
-
Primary & General Elections
Salaries and Wages
30,000
20,000
17,677
-
2,323
-
Other Expenses
55,000
55,000
46,245
-
8,755
-
Finance Director's Office
Salaries and Wages
777,000
807,000
803,929
-
3,071
-
Tax Assessor
Salaries and Wages
213,000
216,500
215,744
-
756
-
Collection of Taxes
Salaries and Wages
245,000
255,000
252,304
-
2,696
-
Postage
85,000
85,000
84,842
-
158
-
Planning and Zoning
Salaries and Wages
385,000
423,000
422,623
-
377
-
Other Expenses
4,500
6,500
5,969
-
531
-
Law Department
Salaries and Wages
645,000
636,000
635,964
-
36
-
Other Expenses
32,000
32,000
29,273
183
2,544
-
Contracts
220,000
148,000
77,580
57,420
13,000
-
Board of Health
Salaries and Wages
835,000
735,000
734,192
-
808
-
Other Expenses
487,264
387,239
188,300
56,615
142,324
-
112
Exhibit A-3
Sheet 3 of 10
Appropriations
Expended
Adopted
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF EXPENDITURES AND OTHER CHARGES TO INCOME
(A) Operations - within "CAPS" - (continued)
Bayonne Health Center
Other Expenses
4,000
$
4,000
$
3,797
$
178
$
25
$
-
$
Solid Waste Disposal
Other Expenses
3,500,000
3,500,000
3,000,062
449,551
50,387
-
Solid Waste Collection
Other Expenses
1,850,000
1,876,000
1,773,100
102,547
353
-
Fire Department
Salaries and Wages (Non-Uniform Personnel)
180,000
155,000
154,493
-
507
-
Other Expenses
410,000
370,000
252,292
27,709
89,999
-
Salaries and Wages (Uniform Personnel)
19,950,000
19,991,000
19,972,123
-
18,877
-
Uniform Fire Safety Act
115,070
115,070
115,070
-
-
-
Law Enforcement Department
Non-Uniform Personnel
Salaries and Wages
3,000,000
3,005,000
3,001,416
-
3,584
-
Other Expenses
13,000
13,000
8,390
-
4,610
-
Uniform Personnel
Salaries and Wages
19,950,000
19,620,700
18,446,794
-
1,173,906
-
Other Expenses
520,000
520,000
484,512
24,452
11,036
-
Prosecutor's Office
Salaries and Wages
60,000
5,000
1,077
-
3,923
-
Department of Public Works / Parks
Snow Removal
Salaries and Wages
165,000
170,000
165,000
-
5,000
-
Other Expenses
200,000
205,000
178,315
5,031
21,654
-
Celebration of Public Holidays
Other Expenses
36,000
36,000
35,150
-
850
-
113
Exhibit A-3
Sheet 4 of 10
Appropriations
Expended
Adopted
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF EXPENDITURES AND OTHER CHARGES TO INCOME
(A) Operations - within "CAPS" - (continued)
Swimming Pool
Salaries and Wages
127,000
$
127,000
$
127,000
$
-
$
-
$
-
$
Other Expenses
46,000
46,000
45,638
-
362
-
Parks & Playgrounds - Recreational
Salaries and Wages
1,365,000
1,470,000
1,444,724
-
25,276
-
Other Expenses
90,000
124,000
120,302
3,691
7
-
Streets and Road Maintenance
Salaries and Wages
1,250,000
1,230,000
1,215,462
-
14,538
-
Other Expenses
235,000
185,000
151,392
32,952
656
-
Buildings and Grounds
Salaries and Wages
1,440,000
1,450,000
1,447,526
-
2,474
-
Other Expenses
200,000
253,000
220,863
31,717
420
-
Vehicle Maintenance
Salaries and Wages
660,000
585,000
575,708
-
9,292
-
Other Expenses
335,000
452,000
347,929
101,156
2,915
-
Maintenance of Parks
Salaries and Wages
1,825,000
1,996,000
1,990,306
-
5,694
-
Other Expenses
72,000
82,000
75,125
4,861
2,014
-
Department of Public Works / Parks
Other Public Works
Salaries and Wages
360,000
408,000
405,335
-
2,665
-
Other Expenses
175,000
321,000
146,565
162,746
11,689
-
Public Works Reimbursement
3,240
3,240
3,240
-
-
-
Public Defender
Other Expenses
65,000
71,500
65,442
5,833
225
-
Bulk Levy Sale Expenses
15,000
15,000
6,391
-
8,609
-
114
Exhibit A-3
Sheet 5 of 10
Appropriations
Expended
Adopted
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF EXPENDITURES AND OTHER CHARGES TO INCOME
(A) Operations - within "CAPS" - (continued)
Municipal Court
Salaries and Wages
1,050,000
$
1,050,000
$
1,027,861
$
-
$
22,139
$
-
$
Other Expenses
72,000
73,000
69,885
3,041
74
-
Insurance:N.J.S.A. 40A:4-45.3(00)
General Liability / Workers Compensation
3,170,000
3,070,000
2,970,000
-
100,000
-
Employee Group Health
16,362,200
16,337,200
16,175,624
1,587
159,989
-
Group Insurance Waiver Costs
59,916
59,916
59,916
-
-
-
Homeland Security N.J.S.A. 40A:4-45.3
Police Salaries and Wages
150,000
150,000
150,000
-
-
-
Fire Salaries and Wages
25,000
25,000
25,000
-
-
-
Unclassified
Retirement of Liquor Licenses
20,000
20,000
-
-
20,000
-
Gasoline, Oil, Grease, Etc.
470,000
450,000
266,611
-
183,389
-
Older American Program
58,469
38,469
18,276
10,182
10,011
-
Utilities
1,540,000
1,540,000
1,283,012
256,988
-
-
Reserve for Tax Appeals
200,000
200,000
200,000
-
-
-
(B) Contingent
1,000
1,000
-
-
1,000
-
88,015,159
87,975,159
84,290,551
1,441,628
2,242,980
-
Detail:
Salaries and Wages
56,137,000
55,946,525
54,643,367
-
1,303,158
-
Other Expenses
31,878,159
32,028,634
29,647,184
1,441,628
939,822
-
115
Exhibit A-3
Sheet 6 of 10
Appropriations
Expended
Adopted
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF EXPENDITURES AND OTHER CHARGES TO INCOME
(E) Deferred Charges and Statutory Expenditures within "CAPS"
(1) DEFERRED CHARGES
Prior Year's Bills
4,531
4,531
4,531
-
-
-
4,531
4,531
4,531
-
-
-
(2) STATUTORY EXPENDITURES
Contribution to:
Public Employees Retirement System
1,965,000
$
1,965,000
$
1,963,155
$
-
$
1,845
$
-
$
Social Security System (O.A.S.I.)
1,875,000
1,915,000
1,905,854
-
9,146
-
Consolidated Police & Firemen's Pension Fund
10,500
10,500
10,011
-
489
-
Police & Fire Retirement System of NJ
10,135,000
10,135,000
10,134,691
-
309
-
Unemployment Insurance
50,000
50,000
50,000
-
-
-
Defined Contribution Retirement Program
27,000
32,000
30,673
-
1,327
-
Municipal Pensions to Employees/Widows
44,000
39,000
38,482
-
518
-
14,106,500
14,146,500
14,132,866
-
13,634
-
(H-1)TOTAL GENERAL APPROPRIATIONS
FOR MUNICIPAL PURPOSES WITHIN "CAPS"
102,126,190
102,126,190
98,427,948
1,441,628
2,256,614
-
(A) Operations - Excluded From "CAPS"
GENERAL GOVERNMENT
Free Public Library
1,820,000
1,820,000
1,741,648
32,130
46,222
-
1,820,000
1,820,000
1,741,648
32,130
46,222
-
SHARED SERVICE AGREEMENTS
Housing Authority-Garbage Removal Services
120,000
120,000
11,667
108,333
-
-
120,000
120,000
11,667
108,333
-
-
116
Exhibit A-3
Sheet 7 of 10
Appropriations
Expended
Adopted
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF EXPENDITURES AND OTHER CHARGES TO INCOME
PUBLIC AND PRIVATE APPROPRIATIONS
OFFSET BY REVENUES
Federal Grants:
Reimbursement of Police Salaries
54,619
54,619
54,619
-
-
-
Bullet Proof Vests
1,072
41,445
41,445
-
-
-
Assistance to Firefighters Grant - ARRA
-
45,455
45,455
-
-
-
Federal Equitable Sharing -
Reimbursement Police Department
82,289
82,289
82,289
-
-
-
2015 Port Security Grant
-
25,000
25,000
-
-
-
Customs and Border Control
119,358
174,928
174,928
-
-
-
UASI Training Reimbursement Fund
129,970
129,970
129,970
-
-
-
Area Plan Grant -
Older American Act of 1965 - Title III
485,065
485,065
485,065
-
-
-
Congregate Meals Program
469,124
469,124
469,124
-
-
-
Home Delivered Meals
-
10,000
10,000
-
-
-
Emergency Management Assistance
-
10,000
10,000
-
-
-
State Grants:
Bureau of Housing Inspection
66,858
66,858
66,858
-
-
-
Municipal Alliance Grant
38,678
93,126
93,126
-
-
-
Municipal Aid Grant
-
327,592
327,592
-
-
-
ESL Grant Cruise Foundation
-
5,000
5,000
-
-
-
Body Armor Replacement Fund
-
30,494
30,494
-
-
-
Pedestrian Safety Enforcement and Education
9,400
9,400
9,400
-
-
-
Drunk Driving Enforcement Fund
5,760
5,760
5,760
-
-
-
Police Overtime - DMV
139,715
139,715
139,715
-
-
-
Bayonne Housing Authority Police Grant
260,085
260,085
260,085
-
-
-
Reimbursement - Citywide Communications
-
6,028
6,028
-
-
-
Other Items:
117
Exhibit A-3
Sheet 8 of 10
Appropriations
Expended
Adopted
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF EXPENDITURES AND OTHER CHARGES TO INCOME
Private Contributions for Public Events
500
500
500
-
-
-
Ground Restoration
40,894
40,894
40,894
-
-
-
NJ Turnpike Shuttle Service
1,620
1,620
1,620
-
-
-
Donation-Recreation Department
4,939
4,939
4,939
-
-
-
Poster Contest Donations
12,249
12,249
10,265
-
1,984
-
1,922,195
2,532,155
2,530,171
-
1,984
-
Total Operations - Excluded from "CAPS"
3,862,195
4,472,155
4,283,486
140,463
48,206
-
Detail:
Salaries and Wages
593,789
639,244
639,244
-
-
-
Other Expenses
3,268,406
3,832,911
3,644,242
140,463
48,206
-
118
Exhibit A-3
Sheet 9 of 10
Appropriations
Expended
Adopted
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF EXPENDITURES AND OTHER CHARGES TO INCOME
(D) Municipal Debt Service
Bond Principal
2,462,000
2,732,000
2,716,877
-
-
15,123
Bond Anticipation and Capital Notes
3,295,000
3,295,000
3,294,140
-
-
860
Interest on Bonds
6,200,000
5,930,000
5,807,248
-
-
122,752
Interest on Notes
585,000
585,000
562,350
-
-
22,650
Green Trust Loan Program
Loan Repayments for Principal and Interest
44,835
44,835
44,834
-
-
1
Demolition Loan Program
101,195
101,195
101,194
-
-
1
HCIA Lease Transaction
737,000
737,000
636,541
-
-
100,459
13,425,030
13,425,030
13,163,184
-
-
261,846
(E) Deferred Charges-Municipal-Excluded from "CAPS"
Funding for Various Capital Ordinances
50,114
50,114
50,114
-
-
-
Total Deferred Charges-Municipal-Excluded From "CAPS"
50,114
50,114
50,114
-
-
-
(H-2) TOTAL GENERAL APPROPRIATIONS FOR
MUNICIPAL PURPOSES - EXCLUDED FROM "CAPS"
17,337,339
17,947,299
17,496,784
140,463
48,206
261,846
119
Exhibit A-3
Sheet 10 of 10
Appropriations
Expended
Adopted
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF EXPENDITURES AND OTHER CHARGES TO INCOME
(I) Local District School Purposes - Excluded from "CAPS"
TYPE 1 DISTRICT SCHOOL DEBT
Payment of Bond Principal
5,620,000
$
5,900,000
$
5,894,210
$
-
$
-
$
5,790
$
Interest on Bonds
4,070,000
3,790,000
3,749,981
-
-
40,019
Interest on Notes
47,000
47,000
46,692
-
-
308
9,737,000
9,737,000
9,690,883
-
-
46,117
(O) TOTAL GENERAL APPROPRIATIONS -
EXCLUDED FROM "CAPS"
27,074,339
27,684,299
27,187,667
140,463
48,206
307,963
(L) Subtotal General Appropriations
129,200,529
129,810,489
125,615,615
1,582,091
2,304,820
307,963
(M) Reserve for Uncollected Taxes
2,600,000
2,600,000
2,600,000
-
-
-
TOTAL GENERAL APPROPRIATIONS
131,800,529
$
132,410,489
$
128,215,615
$
1,582,091
$
2,304,820
$
307,963
$
Budget As Adopted
131,800,529
$
-
$
Added by N.J.S.A. 40A:4-87
609,960
-
Reserve for Uncollected Taxes
-
2,600,000
Deferred Charges
-
54,645
Qualified Bonds Paid by State
-
7,343,853
Due to Capital: Deficiency in Proceeds to Pay Notes Charged to Budget
1,469
State and Federal Grants - Matching Funds
-
345,537
State and Federal Grants
-
2,126,416
Cash Disbursements
-
115,743,695
Subtotal: General Appropriations Budgeted and Paid or Charged
132,410,489
128,215,615
-
Appropriations Cancelled
307,963
-
132,102,526
$
128,215,615
$
120
Exhibit A-4
Balance: December 31, 2014
18,324,007
$
Increased by Cash Receipts:
Write Off Old Outstanding Checks
261,660
$
Miscellenous Adjustments
1,132
Miscellaneous Revenues Not Anticipated
2,125,715
Taxes Receivable
166,722,499
State Aid Receivable
2,156,293
Revenue Accounts Receivable
31,729,057
Other Accounts Receivable
-
Interfunds
67,834,357
Prepaid Taxes
770,182
Tax Overpayments
2,956,296
State Sr. Citizen and Veteran Deductions
316,041
Reserve for Urban Enterprise Zone Funds
2,142,120
Reserves for Other
3,906,167
280,921,519
299,245,526
Decreased by Cash Disbursements:
Refund of Prior Year Revenues
Current Year Budget Appropriations
115,743,695
Interfunds
64,733,967
Appropriation Reserves
2,552,409
School Taxes Payable
60,283,361
County Taxes Payable
28,804,042
Special Improvement District Taxes Payable
160,370
Contracts Payable
38,719
Tax Overpayments
2,859,063
Reserve for Urban Enterprise Zone Funds
933,669
Reserves for Other
1,038,942
277,148,237
Balance: December 31, 2015
22,097,289
$
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF CASH AND CASH EQUIVALENTS
121
Exhibit A-5
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY
Balance:
2015
Added
By Discounts
Transfer to
Balance:
Year
Dec. 31, 2014
Levy
Taxes
Prior Year
Current Year
Allowed
Cancelled
Tax Title Liens
Dec. 31, 2015
2014 &
Prior
841,686
$
-
$
13,784
$
-
$
(1,385,581)
$
-
$
1,788,181
$
-
$
452,870
$
CY 2015
-
169,948,441
124,470
681,936
168,108,080
309,629
640,929
37,150
295,187
841,686
$
169,948,441
$
138,254
$
681,936
$
166,722,499
$
309,629
$
2,429,110
$
37,150
$
748,057
$
Tax Yield:
General Purpose
169,658,441
$
Special Improvement District
290,000
Added and Omitted Taxes
138,254
170,086,695
$
Tax Levy:
Local District School Tax (Abstract)
Levy
60,283,361
$
Addition to Local District School Tax
9,737,000
Total Local District School Tax (Abstract)
70,020,361
$
County Tax
County Taxes (Abstract)
28,440,609
County Open Space Taxes
268,553
Added and Omitted County Taxes
23,387
Total County Tax
28,732,549
Special Improvement District Taxes
290,000
Library Tax
1,770,313
Local Tax for Municipal Purposes
Local Tax for Municipal Purposes (Abstract)
69,121,442
Local Tax for Municipal Levied (Added)
114,867
Add: Omitted Taxes
37,163
Local Tax for Municipal Purposes Levied
69,273,472
170,086,695
$
By Cash Receipts - Net of Refunds
Collections
122
Exhibit A-6
Balance: December 31, 2014
617,705
$
Increased by:
Transfer from Taxes Receivable
37,150
Balance: December 31, 2015
654,855
$
Exhibit A-7
SCHEDULE OF INTERGOVERNMENTAL RECEIVABLES - STATE AID
Balance: December 31, 2014
3,558,976
$
Increased by:
Accrued State Aid
8,829,801
12,388,777
Decreased by:
Qualified Bonds Paid by State
7,343,853
$
Cash Receipts
2,156,293
9,500,146
Balance: December 31, 2015
2,888,631
$
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF TAX TITLE LIENS
123
Exhibit A-8
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE
Balance:
Current Year
Balance:
Dec. 31, 2014
Accruals
Collections
Cancelled
Dec. 31, 2015
Local Revenues:
Licenses:
Alcoholic Beverage
-
$
76,266
$
76,266
$
-
$
-
$
Other
-
150,102
150,102
-
-
Fees and Permits
-
1,075,291
1,075,291
-
-
Fines and Costs - Municipal Court
150,582
1,944,746
1,944,746
-
150,582
Interest and Costs on Taxes
-
333,545
333,545
-
-
Interest on Investments and Deposits
-
36,863
36,863
-
-
Payments in Lieu of Taxes:
Bayonne Housing Authority
350,000
604,051
604,051
-
350,000
BHA Post Road Gardens
57,192
-
-
-
57,192
Senior Horizons of Bayonne
49,641
59,411
59,411
-
49,641
Port Authority
-
2,919,808
2,919,808
-
-
Bayonne Community Action
7,000
7,819
7,819
-
7,000
Bayonne Energy Center
-
1,508,445
1,508,445
-
-
Alexan City View
-
1,106,455
1,106,455
-
-
Platty Kill Manor
-
180,000
180,000
-
-
Rents - City Owned Property
-
124,267
124,267
-
-
Verizon Franchise Fee
-
247,541
247,541
-
-
Reimbursement from Housing Authority:
Garbage Contract
115,000
-
-
115,000
-
Dumpsters
5,400
-
-
5,400
-
Other
100,000
-
-
100,000
-
Forestry Expenses
175,000
-
-
-
175,000
1,009,815
10,374,610
10,374,610
220,400
789,415
Private Revenues:
Private Contributions for Public Events
-
500
500
-
-
Ground Restoration
-
40,894
40,894
-
-
NJ Turnpike Shuttle Service
-
1,620
1,620
-
-
Donation-Recreation Department
-
4,939
4,939
-
-
Poster Contest Donations
-
12,249
12,249
-
-
-
60,202
60,202
-
-
Other Special Items:
Debt Service Reimbursement-Empire Golf
-
216,998
216,998
-
-
Indirect Cost Reimbursement-UCC
-
120,000
120,000
-
-
Reimbursement - Board of Education
1,137,500
-
-
1,137,500
-
Uniform Fire Code Inspection Fees
-
110,976
110,976
-
-
Parking Tax
-
534,919
534,919
-
-
Spectra Energy
-
1,860,326
1,860,326
-
-
Port Authority Land Payment
-
5,000,000
5,000,000
-
-
BMUA Concession Fee
-
11,237,179
11,237,179
-
-
Capital Growth Transaction
-
2,378,828
2,378,828
-
-
Uniform Fire Safety Act
-
104,326
104,326
-
-
Public Works Reimbursement
-
3,240
3,240
-
-
Interfund Receivable - Due from Capital Fund
-
630,714
630,714
-
-
1,137,500
22,197,506
22,197,506
1,137,500
-
Total Miscellaneous Revenues
2,147,315
$
32,632,318
$
32,632,318
$
1,357,900
$
789,415
$
124
Exhibit A-9
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
Due from
Balance:
Federal and
Balance:
Dec. 31, 2014
State Grant Fund
Cancelled
Dec. 31, 2015
BMUA West Side Passive Park
271,618
$
-
$
271,618
$
-
$
Baker Residential Homes-Park
150,000
-
150,000
-
421,618
$
-
$
421,618
$
-
$
Exhibit A-10
Balance:
Budget
Balance:
Dec. 31, 2014
Authorized
Appropriations
Dec. 31, 2015
Loans Payable-Prior Year
202,391
$
-
$
-
$
202,391
$
Fund Capital Ordinances
50,114
-
50,114
-
Prior Year Bills
4,531
-
4,531
-
257,036
$
-
$
54,645
$
202,391
$
SCHEDULE OF OTHER ACCOUNTS RECEIVABLE
SCHEDULE OF DEFERRED CHARGES
125
Exhibit A-11
Sheet 1 of 3
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF APPROPRIATION RESERVES
Balance: December 31, 2014
Balance After
Paid or
Balance
Reserved
Encumbered
Transfers
Charged
Lapsed
(A) Operations - within "CAPS"
Office of the Mayor
Salaries and Wages
744
$
-
$
744
$
-
$
744
$
Other Expenses
39
542
581
513
68
Planning Board
Other Expenses
31,366
3,707
35,073
1,367
33,706
Board of Adjustment
Other Expenses
10,942
1,878
12,820
1,878
10,942
Alcohol Beverage Control
Other Expenses
211
-
211
-
211
Environmental Commission
Other Expenses (N.J.S.A. 40:56A-1)
1,000
-
1,000
-
1,000
Rent Control Office
Other Expenses
625
1,310
4,935
4,375
560
Business Administrator's Office
Salaries and Wages
619
-
619
(1,030)
1,649
Other Expenses
25,522
32,376
204,898
185,959
18,939
Personnel Department
Salaries and Wages
310
-
310
-
310
Telephone Expenses
12,113
2,369
14,482
2,424
12,058
Municipal Council
Salaries and Wages
374
-
374
-
374
Other Expenses
696
-
696
135
561
Budget & Accounting Fees
10,000
-
10,000
5,000
5,000
City Clerk's Office
Salaries and Wages
1,460
-
1,460
-
1,460
Other Expenses
1,285
444
1,729
1,507
222
Primary & General Elections
Salaries and Wages
67,880
-
17,880
16,953
927
Other Expenses
106,957
2,610
15,567
-
15,567
Finance Director's Office
Salaries and Wages
3,265
-
3,265
-
3,265
Tax Assessor
Salaries and Wages
9,427
-
9,427
(1,026)
10,453
Collection of Taxes
Salaries and Wages
1,034
-
1,034
-
1,034
Postage
66
-
66
-
66
Planning and Zoning
Salaries and Wages
5,728
-
5,728
117
5,611
Other Expenses
1,812
83
1,895
125
1,770
Law Department
Salaries and Wages
8,166
-
8,166
(500)
8,666
Other Expenses
856
1,822
2,678
2,450
228
Contracts
36,515
59,021
95,536
34,131
61,405
Board of Health
Salaries and Wages
25,751
-
5,751
-
5,751
Other Expenses
8,039
97,366
151,405
98,998
52,407
Aid to PAL Day Care Center (NJSA 40:238.14)
Other Expenses
16,300
-
16,300
-
16,300
Medical Services for Employees
Other Expenses
2,188
812
3,000
812
2,188
Bayonne Health Center
Other Expenses
294
95
389
98
291
126
Exhibit A-11
Sheet 2 of 3
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF APPROPRIATION RESERVES
Balance: December 31, 2014
Balance After
Paid or
Balance
Reserved
Encumbered
Transfers
Charged
Lapsed
(A) Operations - within "CAPS" (Continued)
Solid Waste Disposal
Other Expenses
3,499
$
332,550
$
336,049
$
273,037
$
63,012
$
Solid Waste Collection
Other Expenses
106,013
55,500
161,513
161,513
-
Fire Department
Salaries and Wages (Non-Uniform Personnel)
4,370
-
4,370
-
4,370
Other Expenses
27,079
19,640
46,719
43,408
3,311
Salaries and Wages (Uniform Personnel)
24,955
-
24,955
24,955
-
Law Enforcement Department
Non-Uniform Personnel
Salaries and Wages
2,998
-
2,998
-
2,998
Uniform Personnel
Salaries and Wages
1,721,311
-
1,721,311
670,699
1,050,612
Other Expenses
11,440
34,092
65,532
62,524
3,008
Prosecutor's Office
Salaries and Wages
6,204
7,500
13,704
-
13,704
Department of Public Works / Parks
Snow Removal
Salaries and Wages
5,000
-
5,000
5,000
-
Other Expenses
60,016
19,031
79,047
78,782
265
Swimming Pool
Other Expenses
8,767
-
8,767
-
8,767
Parks & Playgrounds - Recreational
Salaries and Wages
16,386
-
6,386
-
6,386
Other Expenses
2,535
2,720
7,255
7,221
34
Streets and Road Maintenance
Salaries and Wages
2,926
-
2,926
-
2,926
Other Expenses
5,638
87,087
92,725
75,612
17,113
Buildings and Grounds
Salaries and Wages
19,296
-
4,296
-
4,296
Other Expenses
11,539
24,058
49,597
48,733
864
Vehicle Maintenance
Salaries and Wages
219
-
219
-
219
Other Expenses
35,468
48,666
117,134
107,955
9,179
Maintenance of Parks
Salaries and Wages
20,135
-
4,135
-
4,135
Other Expenses
9,472
13,157
22,629
20,707
1,922
Department of Public Works / Parks
Other Public Works
Salaries and Wages
1,926
-
1,926
-
1,926
Other Expenses
677
36,637
38,814
34,460
4,354
Public Defender
Other Expenses
75
5,833
5,908
5,833
75
Bulk Levy Sale Expenses
-
10,002
10,002
1,470
8,532
Municipal Court
Salaries and Wages
39,318
-
39,318
-
39,318
Other Expenses
2,281
6,913
9,194
8,413
781
Insurance:N.J.S.A. 40A:4-45.3(00)
Employee Group Health
199,971
-
199,971
-
199,971
127
Exhibit A-11
Sheet 3 of 3
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF APPROPRIATION RESERVES
Balance: December 31, 2014
Balance After
Paid or
Balance
Reserved
Encumbered
Transfers
Charged
Lapsed
(A) Operations - within "CAPS" (Continued)
Unclassified
Gasoline, Oil, Grease, Etc.
37,475
$
-
$
37,475
$
26,798
$
10,677
$
Older American Program
38,041
2,784
40,825
10,877
29,948
Utilities
44,299
332,931
377,230
337,183
40,047
Professional Services-PBH
4,738
83,301
88,039
59,133
28,906
(B) Contingent
1,000
-
1,000
-
1,000
(E) Statutory Expenditures within "CAPS"
(2) STATUTORY EXPENDITURES
Contribution to:
Public Employees Retirement System
39,825
-
13,825
13,825
-
Social Security System (O.A.S.I.)
10,960
-
10,960
-
10,960
Consolidated Police & Firemen's Pension Fund
108
-
108
-
108
Police & Fire Retirement System of NJ
46,581
-
11,081
-
11,081
Unemployment Insurance
3,000
-
3,000
3,000
-
Defined Contribution Retirement Program
487
-
487
-
487
Municipal Pensions to Employees/Widows
4,107
-
4,107
-
4,107
(A) Operations - Excluded From "CAPS"
GENERAL GOVERNMENT
Free Public Library
343,325
24,142
367,467
76,243
291,224
SHARED SERVICE AGREEMENTS
Housing Authority-Garbage Removal Contract
-
120,000
120,000
30,000
90,000
PRIVATE APPROPRIATIONS
OFFSET BY REVENUES
Other Items
Tree Replacement Fund
13,263
-
13,263
10,612
2,651
Private Contributions for Public Events
130
-
130
130
-
3,328,437
$
1,470,979
$
4,799,416
$
2,552,409
$
2,247,007
$
128
Exhibit A-12
Balance: December 31, 2014
-
$
Increased by 50% of Levy for School Year:
July 1, 2014 to June 30, 2015
29,696,237
$
July 1, 2015 to June 30, 2016
30,587,124
60,283,361
60,283,361
Decreased by:
Cash Disbursements
60,283,361
Balance: December 31, 2015
-
$
Exhibit A-13
Balance: December 31, 2014
94,880
$
Increased by:
General County Taxes
Levied
28,440,609
$
Added and Omitted
23,387
Open Space Tax
Levied
268,553
Added and Omitted
-
28,732,549
28,827,429
Decreased by:
Cash Disbursements
28,804,042
Balance: December 31, 2015
23,387
$
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF LOCAL DISTRICT SCHOOL TAX PAYABLE
SCHEDULE OF COUNTY TAXES PAYABLE
129
Exhibit A-14
Balance: December 31, 2014
364,928
$
Increased by:
2015 Levy
290,000
654,928
Decreased by:
Cash Disbursements
160,370
Balance: December 31, 2015
494,558
$
Exhibit A-15
Balance: December 31, 2014
727,342
$
Decreased by:
Cash Disbursements
38,719
Balance: December 31, 2015
688,623
$
SCHEDULE OF CONTRACTS PAYABLE
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF SPECIAL IMPROVEMENT DISTRICT TAX PAYABLE
130
Exhibit A-16
Balance: December 31, 2014
681,936
$
Increased by:
Cash Receipts
770,182
1,452,118
Decreased by:
Applied to Current Year Taxes Receivable
681,936
Balance: December 31, 2015
770,182
$
Exhibit A-17
Balance: December 31, 2014
2,859,063
$
Increased by:
Cash Receipts - Current Year Tax
2,956,296
5,815,359
Decreased by:
Cash Disbursements
2,859,063
Balance: December 31, 2015
2,956,296
$
SCHEDULE OF TAX OVERPAYMENTS
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF PREPAID TAXES
131
Exhibit A-18
Balance: December 31, 2014
754,354
$
Decreased by:
Miscellenous Revenue Anticipated
754,354
Balance: December 31, 2015
-
$
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF PREPAID PILOT
132
Balance: December 31, 2014
15,810
$
Increased by:
Cash Receipts
316,041
$
Disallowed by Tax Collector:
Senior Citizens' Deductions
15,662
Veterans' Deductions
500
332,203
348,013
Decreased by:
Senior Citizens' Deductions per Tax Billing
45,791
Veterans' Deductions per Tax Billing
270,250
Allowed by Tax Collector:
Senior Citizens' Deductions
7,000
Veterans' Deductions
2,750
325,791
Balance: December 31, 2015
22,222
$
Senior Citizens' and Veterans' Deductions
Per Tax Billing
316,041
$
Add: Allowed by Tax Collector
Senior Citizens' Deductions
7,000
$
Veterans' Deductions
2,750
9,750
325,791
Less: Disallowed by Tax Collector
Senior Citizens' Deductions
15,662
Veterans' Deductions
500
16,162
309,629
$
Analysis of State's Share of Senior Citizens' and Veterans' Deductions
Exhibit A-19
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF DUE TO STATE OF NEW JERSEY -
FOR SENIOR CITIZENS' AND VETERANS' DEDUCTIONS
133
Exhibit A-20
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF RESERVE FOR URBAN ENTERPRIZE ZONE FUNDS
Balance: December 31, 2014
4,616,099
$
Increased by:
Cash Receipts
2,142,120
6,758,219
Decreased by:
Cash Disbursements
933,669
Balance: December 31, 2015
5,824,550
$
134
Exhibit A-21
Sheet 1 of 2
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF RESERVES FOR OTHER
Increased by:
Decreased by Charges for:
Balance
Cash
Cash
Cancelled to
Budget
Transfer to
Balance
Dec. 31, 2014
Receipts
Disbursements
Operations
Revenue
Grants
Dec. 31, 2015
Reserve for:
BLRA Reserve
646
$
734,318
$
733,882
$
-
$
-
$
-
$
1,082
$
Title 39 Fines
16,435
-
-
16,435
-
-
-
Arthur Kill Trust
15,000
-
-
15,000
-
-
-
Brady's Dock
3,189
-
-
3,189
-
-
-
MOT Service Fund
6,910
-
-
-
-
-
6,910
Fire Prevention Poster Contest
1,430
-
840
-
-
-
590
Towing Liens
4,450
-
-
-
-
-
4,450
Tree Replacement Fund
31,509
-
-
-
-
-
31,509
Developers Escrow Municipal Reimbursement
28,137
-
28,137
-
-
-
-
SID Donations
1,000
-
-
1,000
-
-
-
Recreation Donations
177
-
-
177
-
-
-
Reserve for County Share of PILOT
150,000
140,500
119,405
-
-
-
171,095
Fire Department Donations
350
-
-
350
-
-
-
9/11 Memorial Trust
5,000
-
-
5,000
-
-
-
Demolition Lien
16,223
-
-
-
-
-
16,223
Fire Prevention Penalties
31,383
-
-
-
-
-
31,383
Defibulator Donation
1,180
-
-
-
-
-
1,180
Ground Restoration
38,562
-
38,562
-
-
-
-
Contributions - Homeland Security
5,000
-
-
-
-
-
5,000
School Debt Service
-
2,936,124
-
-
-
-
2,936,124
Unappropriated Reserves:
Towing Liens
4,700
3,150
-
-
-
-
7,850
Ground Restoration
6,875
10,931
-
-
10,894
-
6,912
Fire Prevention Poster Contest
7,220
12,029
-
-
12,249
-
7,000
Fire Prevention Penalties
16,804
2,250
-
-
-
-
19,054
Certificates of Occupancy Fees
900
-
-
900
-
-
-
135
Exhibit A-21
Sheet 2 of 2
CITY OF BAYONNE
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF RESERVES FOR OTHER
Increased by:
Decreased by Charges for:
Balance
Cash
Cash
Cancelled to
Budget
Transfer to
Balance
Dec. 31, 2014
Receipts
Disbursements
Operations
Revenue
Grants
Dec. 31, 2015
Child Abuse Prevention
947
$
575
$
-
$
947
$
-
$
-
$
575
$
Minds in Motion
1,875
-
-
1,875
-
-
-
Tree Replacement Fund
21,221
27,285
-
-
-
-
48,506
Boat Ramp Fees
600
-
600
-
-
-
Bayonne Defibrillator
-
5,000
-
-
-
5,000
Sale of Assets:
Police Auction
299,304
33,455
118,116
-
-
-
214,643
Interest Earned on Grant Accounts:
Custom Border Control
5,902
420
-
-
-
-
6,322
Dept. of Justice - Equitable Sharing Funds
7,500
109
-
-
-
511
7,098
Energy Efficiency Grant
679
21
-
679
-
-
21
731,108
$
3,906,167
$
1,038,942
$
46,152
$
23,143
$
511
$
3,528,527
$
136
Exhibit A-22
Sheet 1 of 2
CITY OF BAYONNE
FEDERAL AND STATE GRANT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF FEDERAL AND STATE GRANTS RECEIVABLE
Transfer from
Balance
Original
Added by
Cash
Unappropriated
Adjustments /
Balance
Program
Dec. 31, 2014
Budget
NJSA 40A:4-87
Receipts
Reserve
Cancellation
Dec. 31, 2015
2012 SAFER Grant
870,006
$
-
$
-
$
829,877
$
-
$
-
$
40,129
$
2013 Local Aid Safe Streets to Transit Program
205,000
-
-
-
-
-
205,000
2015 Municipal Aid Program
-
-
327,592
-
-
-
327,592
Assistance to Firefighter Grant
-
-
45,455
-
-
-
45,455
Bayonne Housing Authority Police Grant
-
260,085
-
-
260,085
-
-
Body Armor Fund
-
-
30,494
-
30,494
-
-
FEMA Assistance to Firefighters Grant- 2013
295,291
-
-
266,186
-
-
29,105
Bureau of Housing Inspection
-
66,858
-
-
66,858
-
-
Green Communities Forestry Grant
3,000
-
-
-
-
-
3,000
Congregate Meals Program
404,348
469,124
-
238,862
-
-
634,610
COPS More 2002 (02-CMWX-0173)
9,469
-
-
-
-
9,469
-
Custom Border Patrol
-
119,358
55,570
-
174,928
-
-
Department of Justice Grant
12,096
-
-
-
-
12,096
-
Department of Justice OE/Federal Forfeiture Funds
-
82,289
-
-
82,289
-
-
DOT FY 2014 Grant
85,970
-
-
-
-
-
85,970
DOT Grant - Ave C Paving
342,344
-
-
-
-
342,344
-
DOT Paving Grant - FY 2012
300,061
-
-
-
-
-
300,061
DOT Pedestrian Bridge Grant
550,000
-
-
-
-
-
550,000
Drunk Driving Enforcement Grant
-
5,760
-
-
5,760
-
-
Department of Justice Bullet Proof Vest
-
1,072
40,373
-
41,445
-
-
Emergency Management Grant
-
-
10,000
10,000
-
-
-
ESL Grant Cruise Foundation
-
-
5,000
5,000
-
-
-
Green Acres Grant
750,000
-
-
-
-
500,000
250,000
Home Delivered Meals
10,000
-
10,000
-
-
-
20,000
Hudson County Cultural & Heritage Affairs Grant
17,022
-
-
-
-
17,022
-
Hudson County Open Space Trust Fund
430,020
-
-
41,074
-
-
388,946
Hudson County Open Space Trust Fund - Museum
240,000
-
-
44,417
-
-
195,583
Hudson County Records Management/Paris Grant
25,000
-
-
-
-
25,000
-
Justice Assistance Grant Program - 2011
95
-
-
-
-
95
-
Justice Assistance Grant Program - 2012
19,208
-
-
16,715
-
-
2,493
Current Year Awards
137
Exhibit A-22
Sheet 2 of 2
CITY OF BAYONNE
FEDERAL AND STATE GRANT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF FEDERAL AND STATE GRANTS RECEIVABLE
Transfer from
Balance
Original
Added by
Cash
Unappropriated
Adjustments /
Balance
Program
Dec. 31, 2014
Budget
NJSA 40A:4-87
Receipts
Reserve
Cancellation
Dec. 31, 2015
Current Year Awards
Justice Assistance Grant Program - 2013
16,515
$
-
$
-
$
-
$
-
$
16,515
$
-
$
Justice Assistance Grant Program - 2014
15,715
-
-
-
-
-
15,715
Justice Assistance Grant Program (JAG)
76
-
-
-
-
-
76
KABOOM Grant
9,000
-
-
-
-
9,000
-
Municipal Alliance Grant
-
30,942
54,448
-
85,390
-
-
Older American Act of 1965
144,820
147,264
-
144,820
147,264
-
-
Pedestrian Safety Grant
-
9,400
-
-
9,400
-
-
Police OT - DMV
-
139,715
-
-
139,715
-
-
Police Salary Reimbursement
-
54,619
-
-
54,619
-
-
Port Authority Grant
2,000,000
-
-
-
-
-
2,000,000
Port Security Grant
22,500
-
-
-
-
22,500
-
Port Security Grant - 2010
255,342
-
-
255,342
-
-
-
Port Security Grant - 2011
840,947
-
-
840,947
-
-
-
Port Security Grant - 2014
25,000
-
-
-
-
-
25,000
Port Security Grant - 2015
-
-
25,000
-
-
-
25,000
Reimbursement City Wide Communications System
-
-
6,028
6,028
-
-
-
Safe Routes to Schools Program
300,000
-
-
-
-
-
300,000
TIGER Grant
9,039,560
-
-
8,447,600
-
-
591,960
UASI Training - Fire Department
-
129,970
-
-
129,970
-
-
US Dept. of Justice- DEA -Police OT
119,952
-
-
184
-
119,768
-
US Dept. of Commerce-EDA Grant
3,816,715
-
-
3,790,482
-
26,233
-
21,175,072
$
1,516,456
$
609,960
$
14,937,534
$
1,228,217
$
1,100,042
$
6,035,695
$
138
Exhibit A-23
Page 1 of 3
CITY OF BAYONNE
FEDERAL AND STATE GRANT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF RESERVE FOR FEDERAL AND STATE GRANTS - APPROPRIATED
Program Income/
Current Year
Matching
Paid or
Transfers /
Reserved
Encumbered
Awards
Funds
Charged
Cancellation
Encumbered
Reserved
Law Enforcement Block Grant II
23,810
$
-
$
-
$
-
$
-
$
-
$
-
$
23,810
$
Law Enforcement Block Grant III
21,581
-
-
-
-
214
-
21,795
Law Enforcement Block Grant IX
49,918
-
-
-
-
-
-
49,918
COPS More (Technology)
4,742
-
-
-
-
(4,742)
-
-
COPS Technology
445,092
-
-
-
-
-
-
445,092
COPS Universal Hiring Supplemental
305,833
-
-
-
-
(305,833)
-
-
COPS - Secure Our Schools (SOS)
62,245
-
-
-
-
-
-
62,245
Reimbursement of Police Salaries
-
-
54,619
-
54,619
-
-
-
Justice Assistance Grant - 2009
19,611
-
-
-
-
(19,611)
-
-
Justice Assistance Grant - Annual Round
76
-
-
-
-
-
-
76
Justice Assistance Grant
15,781
-
-
-
-
-
-
15,781
Justice Assistance Grant - 2011
95
-
-
-
-
(95)
-
-
Justice Assistance Grant - 2012
19,208
-
-
-
-
(19,208)
-
-
Justice Assistance Grant - 2013
5,757
-
-
-
-
-
-
5,757
Justice Assistance Grant - 2014
9
15,706
-
-
15,706
-
-
9
Byrne Formula / Community Partnership
27,674
-
-
-
-
(27,674)
-
-
Bulletproof Vests
2,359
35,854
41,445
-
37,663
-
-
41,995
Fire Station Construction - ARRA
7,654
225,235
-
-
123,500
-
109,389
-
Assistance to Firefighters Grant - ARRA
-
-
45,455
-
-
-
-
45,455
Assistance to Firefighters Grant - ARRA
295,291
-
-
-
231,486
-
10,153
53,652
Assistance to Firefighters Grant - ARRA
68,599
-
-
-
-
(68,599)
-
-
Assistance to Firefighters Grant - ARRA
5,401
-
-
-
-
(5,401)
-
-
Drug Enforcement Agency
163,032
-
-
-
-
-
-
163,032
Drug Enforcement Agency
42,119
-
-
-
-
-
-
42,119
Reimbursement Police Department
69,022
1,812
82,289
-
103,875
511
450
49,309
Reimbursement Police Department
67,383
-
-
-
-
(67,383)
-
-
2011 Port Security Grant
102,861
-
-
-
-
-
-
102,861
2014 Port Security Grant
25,000
-
-
-
18,575
-
-
6,425
2015 Port Security Grant
-
-
25,000
-
-
-
-
25,000
Port Security Grant
83,594
-
-
-
-
-
83,594
Port Authority Grant-Relocate Certain Parks
1,973,724
-
-
68,444
-
36,736
1,868,544
Enhanced 911 Grant 2008
42,513
-
-
-
-
-
42,513
Customs and Border Control
55,847
-
174,928
-
130,735
-
5,584
94,456
Balance: December 31, 2015
FEDERAL GRANTS
Balance: December 31, 2014
139
Exhibit A-23
Page 2 of 3
CITY OF BAYONNE
FEDERAL AND STATE GRANT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF RESERVE FOR FEDERAL AND STATE GRANTS - APPROPRIATED
Program Income/
Current Year
Matching
Paid or
Transfers /
Reserved
Encumbered
Awards
Funds
Charged
Cancellation
Encumbered
Reserved
Balance: December 31, 2015
Balance: December 31, 2014
UASI Training Reimbursement Fund
98,960
$
-
$
129,970
$
-
$
228,930
$
-
$
-
$
-
$
2012 Homeland Security Port Grant
2,617
-
-
-
-
-
-
2,617
FY2012 TIGER Discretionary Grant
9,039,560
-
-
-
8,447,600
-
-
591,960
US Dept of Commerce - EDA Grant
2,346,858
-
-
-
-
(2,346,858)
-
-
Avenue C Paving
243,891
-
-
-
11,710
(232,181)
-
-
Municipal Aid - Various Streets
-
62
-
-
-
-
62
-
Pedestrian Bridge
514,027
-
-
-
-
-
-
514,027
Safe Routes to School Program
287,812
-
-
-
-
-
-
287,812
FY 2012 SAFER Grant
903,518
-
-
-
368,064
-
-
535,454
Area Plan Grant - Older American Act
312,447
558
147,264
337,801
386,710
-
900
410,460
Congregate Meals Program
73,804
15,005
469,124
-
441,101
-
52,642
64,190
Home Delivered Meals
-
-
10,000
-
-
-
-
10,000
Emergency Management Assistance
-
-
10,000
-
-
-
-
10,000
Energy Efficiency Block Grant - ARRA
2,836
-
-
-
-
-
-
2,836
Total Federal Grants
17,832,161
294,232
1,190,094
337,801
10,668,718
(3,096,860)
215,916
5,672,794
Balanced Housing -
Bureau of Housing Inspection
56,679
-
66,858
-
66,858
-
-
56,679
Municipal Alliance Grant
639,488
-
85,390
7,736
-
-
732,614
Municipal Aid Grant
-
-
327,592
-
327,592
-
-
-
ESL Grant Cruise Foundation
-
-
5,000
-
-
-
5,000
Body Armor Replacement Fund
53,742
-
30,494
-
37,705
-
1,809
44,722
George Foreman Grant
28
-
-
-
-
-
28
Pedestrian Safety Enforcment and Education
72,926
-
9,400
-
2,060
-
-
80,266
Drunk Driving Enforcement Fund
1,417
165
5,760
-
6,350
-
358
634
Clean Communities Act
201,998
-
-
-
196,256
-
-
5,742
Green Acres Grant
500,000
-
-
-
(500,000)
-
-
FEDERAL GRANTS (Continued)
STATE AND LOCAL GRANTS
140
Exhibit A-23
Page 3 of 3
CITY OF BAYONNE
FEDERAL AND STATE GRANT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF RESERVE FOR FEDERAL AND STATE GRANTS - APPROPRIATED
Program Income/
Current Year
Matching
Paid or
Transfers /
Reserved
Encumbered
Awards
Funds
Charged
Cancellation
Encumbered
Reserved
Balance: December 31, 2015
Balance: December 31, 2014
STATE AND LOCAL GRANTS (Continued)
Green Communities Forestry Grant
-
$
3,000
$
-
$
-
$
-
$
-
$
-
$
3,000
$
FY 14 NJDOT Aid-Various Streets
-
1,704
-
-
-
-
1,704
-
Safe Streets to Transit Program
185,000
5,715
-
-
-
-
5,715
185,000
Police Overtime - DMV
-
-
139,715
-
139,715
-
-
-
Open Space Trust Fund
-
1,109,318
-
-
1,105,392
-
3,926
-
Open Space Trust Fund - Museum
70,998
-
-
-
-
-
-
70,998
County of Hudson - Police Forfeiture Funds
37,849
3,361
-
-
3,399
-
-
37,811
440 Corridor Redevelopment Grant
318,552
-
-
-
-
(318,552)
-
-
Contribution for Public Waterfront Access
250,000
-
-
-
-
(250,000)
-
-
Bayonne Housing Authority Police Grant
560
-
260,085
-
260,085
-
-
560
Parking Utility Reimbursement -
City Wide Communications
-
-
6,028
-
-
-
-
6,028
Pet Smart Charities
7,223
-
-
-
-
-
7,223
KABOOM Grant
9,000
-
-
-
(9,000)
-
-
Library Cultural Grant
8,750
-
-
-
(8,750)
-
-
Total State and Local Grants
2,414,210
1,123,263
936,322
7,736
2,145,412
(1,086,302)
13,512
1,236,305
20,246,371
$
1,417,495
$
2,126,416
$
345,537
$
12,814,130
$
(4,183,162)
$
229,428
$
6,909,099
$
141
Exhibit A-24
CITY OF BAYONNE
FEDERAL AND STATE GRANT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF UNAPPROPRIATED GRANT FUNDS
Balance
Cash
Amount
Balance
Dec. 31, 2014
Receipts
Budgeted
Dec. 31, 2015
FEDERAL GRANTS
Department of Justice -
Reimbursement - Federal Forfeiture Fund
12,598
$
71,406
$
82,289
$
1,715
$
Police Reimbursement Salaries
54,619
45,464
54,619
45,464
Older Americans Act
-
235,344
147,264
88,080
Custom Border Patrol
119,359
66,041
174,928
10,472
Bulletproof Vest Grant Office
1,072
40,373
41,445
-
UASI Training - Fire Dept
102,506
54,015
102,506
54,015
Port Security Grant
-
184
-
184
2011 Port Security Grant
-
2,342
-
2,342
STATE GRANTS
Municipal Alliance Grant
45,942
54,448
85,390
15,000
Body Armor Fund
14,755
15,739
30,494
-
State and Local Housing Inspection
57,326
44,968
66,858
35,436
Drunk Driving Enforcement Fund
5,760
5,616
5,760
5,616
Pedestrian Safety Grant
9,400
9,400
-
Police Overtime-Motor Vehicles
107,090
141,375
139,715
108,750
Clean Communities Grant
-
106,247
106,247
Uniform Fire Safety Code
115,070
115,070
OTHER
Bayonne Housing Authority
267,089
260,085
7,004
UASI Training - Fire Dept (Union County)
27,464
27,464
-
940,050
$
883,562
$
1,228,217
$
595,395
$
142
SUPPLEMENTARY DATA – TRUST FUNDS
Exhibit B
CITY OF BAYONNE
TRUST FUNDS
AS OF DECEMBER 31, 2015 AND 2014
SCHEDULE OF ASSETS, LIABILITIES AND RESERVES - ALL TRUST FUNDS
Totals
Housing and Urban
Tax Lien
Development
December 31,
December 31,
Dog License
Insurance
Redemption
Grant Fund
Other
2015
2014
Assets
Cash and Cash Equivalents
75,607
$
644,346
$
127,395
$
69,436
$
7,561,019
$
8,477,803
$
8,366,521
$
Interfunds Receivable
-
-
-
4,045
11,686
15,731
-
Grants Receivable:
CDBG
-
-
-
3,785,487
-
3,785,487
3,701,753
Emergency Shelter
-
-
-
17,726
-
17,726
-
75,607
$
644,346
$
127,395
$
3,876,694
$
7,572,705
$
12,296,747
$
12,068,274
$
Liabilities, Reserves and Fund Balance
Cash Overdraft
-
$
-
$
-
$
-
$
-
$
-
$
-
$
Interfunds Payable
28,531
2
2
-
-
28,535
421,818
Accounts Payable
-
-
-
-
75,519
75,519
100,267
Due to State of New Jersey
763
-
-
-
35,135
35,898
25,376
Reserve for:
Dog Fund Expenditures
46,313
-
-
-
-
46,313
42,321
Insurance Fund Expenditures
-
644,344
-
-
-
644,344
338,679
Tax Lien Redemption
-
-
127,393
-
-
127,393
222,827
Grant Expenditures
-
-
-
3,858,968
-
3,858,968
3,465,892
Other Expenditures
-
-
-
17,726
7,462,051
7,479,777
7,451,094
75,607
$
644,346
$
127,395
$
3,876,694
$
7,572,705
$
12,296,747
$
12,068,274
$
143
Exhibit B-1
Housing and Urban
Tax Lien
Development
Dog License
Insurance
Redemption
Grant Fund
Other
Balance: December 31, 2014
59,954
$
338,679
$
222,827
$
138,140
$
7,606,921
$
Cash Receipts:
Interfunds
-
2
2
90,620
29,679,737
Surcharges Due to State
2,500
-
-
-
82,090
Reserve for Expenditures
18,345
3,711,827
-
81,903
34,974,137
Grants Receivable
-
-
-
1,396,746
-
Program Income
-
-
-
-
-
Other Reserves
-
-
9,880,986
-
-
20,845
3,711,829
9,880,988
1,569,269
64,735,964
Cash Disbursements:
Surcharges Due to State
2,468
-
-
-
71,600
Reserve for Expenditures
2,724
3,406,162
-
1,178,130
34,847,503
Interfunds
-
-
-
459,843
29,862,763
Other Reserves
-
-
9,976,420
-
-
5,192
3,406,162
9,976,420
1,637,973
64,781,866
Balance: December 31, 2015
75,607
$
644,346
$
127,395
$
69,436
$
7,561,019
$
CITY OF BAYONNE
TRUST FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF CASH AND CASH EQUIVALENTS - ALL TRUST FUNDS
144
Exhibit B-2
CITY OF BAYONNE
TRUST FUNDS - ANIMAL CONTROL TRUST FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF DUE TO STATE OF NEW JERSEY - DOG LICENSE FEES
Balance: December 31, 2014
731
$
Increased by:
State License Fees Collected
2,500
3,231
Decreased by:
Cash Disbursements
2,468
Balance: December 31, 2015
763
$
Exhibit B-3
Balance: December 31, 2014
42,321
$
Increased by:
Dog License Fees Collected
18,345
60,666
Decreased by:
Statutory Excess Due to Current
11,629
$
Cash Disbursements
2,724
14,353
Balance: December 31, 2015
46,313
$
Year Ended,
Amount
Dec. 31, 2014
22,075
$
Dec. 31, 2013
24,238
46,313
$
SCHEDULE OF RESERVE FOR ANIMAL CONTROL EXPENDITURES
License Fees Collected
145
Exhibit B-4
CITY OF BAYONNE
TRUST FUNDS - ANIMAL CONTROL TRUST FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF DUE TO CURRENT FUND - ANIMAL CONTROL
Balance: December 31, 2014
16,902
$
Increased by:
Statutory Excess Due to Current
11,629
Balance: December 31, 2015
28,531
$
146
Exhibit B-5
CITY OF BAYONNE
TRUST FUNDS - INSURANCE TRUST FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF RESERVE FOR INSURANCE EXPENDITURES
Balance:
Cash
Cash
Balance:
Dec. 31, 2014
Receipts
Disbursements
Dec. 31, 2015
Disability
83,057
$
15,309
$
-
$
98,366
$
Employee Benefits
88,805
61,483
-
150,288
Unemployment Insurance
59,331
261,414
45,817
274,928
Workers' Compensation
46,520
2,086,189
2,068,127
64,582
Auto and General Liability Insurance
60,966
1,287,432
1,292,218
56,180
338,679
$
3,711,827
$
3,406,162
$
644,344
$
Current Fund Appropriation
50,000
$
Other Cash Receipts
3,661,827
3,711,827
$
147
Exhibit B-6
CITY OF BAYONNE
TRUST FUNDS - INSURANCE TRUST FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
Balance: December 31, 2014
-
$
Increased by:
Interest due to current
2
Balance: December 31, 2015
2
$
SCHEDULE OF DUE TO CURRENT FUND
148
Exhibit B-7
CITY OF BAYONNE
TRUST FUNDS - TAX LIEN REDEMPTION TRUST FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF RESERVE FOR TAX LIEN REDEMPTION
Balance: December 31, 2014
222,827
$
Increased by:
Cash Receipts
9,880,986
10,103,813
Decreased by:
Cash Disbursements
9,976,420
Balance: December 31, 2015
127,393
$
Exhibit B-8
Balance: December 31, 2014
-
$
Increased by:
Interest due to current
2
Balance: December 31, 2015
2
$
SCHEDULE OF DUE TO CURRENT FUND
149
Exhibit B-9
CITY OF BAYONNE
TRUST FUNDS - HOUSING AND URBAN DEVELOPMENT GRANT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF GRANTS RECEIVABLE
Emergency
Total
Shelter
CDBG
Balance: December 31, 2014
3,701,753
$
-
$
3,701,753
$
Increased by:
Authorizations
1,498,206
-
1,498,206
Reclass
-
17,726
(17,726)
5,199,959
17,726
5,182,233
Decreased by:
Cash Receipts
1,396,746
-
1,396,746
Balance: December 31, 2015
3,803,213
$
17,726
$
3,785,487
$
150
Exhibit B-10
Capital
Current
Total
Fund
Fund
Balance: December 31, 2014
(374,001)
$
(353,734)
$
(20,267)
$
Increased/Decreased by:
Due for Salary and Related Charges
51,124
-
51,124
Cash Disbursements
459,843
353,737
106,106
510,967
353,737
157,230
Increased/Decreased by:
Grants Receivable
42,301
-
42,301
Cash Receipts
90,620
-
90,620
132,921
-
132,921
Balance: December 31, 2015
4,045
$
3
$
4,042
$
Exhibit B-11
SCHEDULE OF RESERVE FOR GRANT EXPENDITURES
Emergency
Total
Shelter
CDBG
Balance: December 31, 2014
3,465,892
$
-
$
3,465,892
$
Increased by:
Program Income - Returned Funds
81,903
-
81,903
-
17,726
(17,726)
51,124
-
51,124
Authorizations
1,498,206
-
1,498,206
1,631,233
17,726
1,613,507
Decreased by:
Due to Current Fund
42,301
-
42,301
Cash Disbursements
1,178,130
-
1,178,130
1,220,431
-
1,220,431
Balance: December 31, 2015
3,876,694
$
17,726
$
3,858,968
$
SCHEDULE OF INTERFUNDS RECEIVABLE/(PAYABLE)
CITY OF BAYONNE
TRUST FUNDS - HOUSING AND URBAN DEVELOPMENT GRANT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
151
Exhibit B-12
CITY OF BAYONNE
TRUST FUNDS - OTHER TRUST
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF DUE TO/(FROM) CURRENT FUND
Balance: December 31, 2014
30,915
$
Increased by:
Receipts Deposited in Trust by Error
13,979
Write off old outstanding checks and PY adjustment
6,446
Budget Revenue - UCC Fees
120,000
Cash Receipts
29,679,737
29,820,162
Decreased by:
Cash Disbursements
29,862,763
29,862,763
Balance: December 31, 2015
(11,686)
$
152
Exhibit B-13
CITY OF BAYONNE
TRUST FUNDS - OTHER TRUST
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF ACCOUNTS PAYABLE
Balance: December 31, 2014
100,267
$
Increased by:
Charges to Miscellaneous Reserves
75,519
175,786
Decreased by:
Prior Year Accounts Payable
100,267
Balance: December 31, 2015
75,519
$
Exhibit B-14
SCHEDULE OF DUE TO STATE OF NEW JERSEY
Marriage
Total
Licenses
DCA Fees
Balance: December 31, 2014
24,645
$
6,895
$
17,750
$
Increased by:
Cash Receipts
82,090
10,345
71,745
106,735
17,240
89,495
Decreased by:
Cash Disbursements
71,600
10,500
61,100
Balance: December 31, 2015
35,135
$
6,740
$
28,395
$
153
Exhibit B-15
Sheet 1 of 2
Balance:
Cash
Cash
Accounts
Balance:
Description
Dec. 31, 2014
Receipts
Disbursements
Payable
Dec. 31, 2015
Cash Performance Bonds
1,829,222
$
259,870
$
397,256
$
1,691,836
$
Recycling Program
120,404
124,999
23,105
2,019
220,279
Police Reimbursements
9,853
5,683,449
5,693,122
180
Building Fines
1,020,166
97,859
77,398
12,756
1,027,871
Refund to Lien Buyers
1,386
-
-
-
1,386
Altha Real Estate
-
-
Contribution-Older American
125,229
35,444
45,711
10,630
104,332
Law Enforcement Trust Fund
16,927
24,793
-
-
41,720
Unclaimed Funds
12,245
-
-
-
12,245
Reserve for Developer's Escrow
756,282
346,023
451,385
22,456
628,464
UCC Dedication by Rider
796,369
1,457,929
1,187,633
27,658
1,039,007
Affordable Housing Trust
1,196,646
3,504
65,838
-
1,134,312
Various Escrow Accounts
52,823
-
-
-
52,823
Fire Prevention Dedication Penalty
30,191
13,400
750
-
42,841
Reserve for POAA
113,088
41,954
14,244
-
140,798
Library State Aid
69,562
22,048
50,372
-
41,238
FSA Vantage Point
13,036
723
13,759
-
-
FSA Flex
10,622
123,326
119,643
-
14,305
Library Fines and Fees
6,654
15,573
4,125
-
18,102
Chapter 25th Street/Sidewalk
58,500
22,500
9,000
-
72,000
Payroll Deduction
1,146,130
24,576,895
24,870,135
-
852,890
Elevator Inspection Fee
65,760
59,276
-
-
125,036
CITY OF BAYONNE
TRUST - OTHER
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF MISCELLANEOUS RESERVES
154
Exhibit B-15
Sheet 2 of 2
Balance:
Cash
Cash
Accounts
Balance:
Description
Dec. 31, 2014
Receipts
Disbursements
Payable
Dec. 31, 2015
CITY OF BAYONNE
TRUST - OTHER
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF MISCELLANEOUS RESERVES
Employee Health Benefits
-
$
2,164,739
$
1,964,452
$
200,287
$
Police Donation Fund
-
100
-
-
100
Other
(1)
(1)
7,451,094
$
35,074,404
$
34,987,928
$
75,519
$
7,462,051
$
Other Cash Activity
34,974,137
$
34,847,503
$
Accounts Payable
100,267
-
Interfund - Current Fund:
Receipts Deposited in Trust in Error
-
13,979
Write Off Old Outstanding Checks and PY
-
6,446
Budgeted Revenue - UCC Fees
-
120,000
35,074,404
$
34,987,928
$
155
SUPPLEMENTARY DATA – CAPITAL FUND
Exhibit C
CITY OF BAYONNE
GENERAL CAPITAL FUND
AS OF DECEMBER 31, 2015 AND 2014
SCHEDULE OF ASSETS, LIABILITIES AND RESERVES
2015
2014
Assets
Cash and Cash Equivalents
3,959,239
$
17,987,233
$
Grants Receivable
2,344,217
1,219,217
Interfunds Receivable - HUD Grants Trust Fund
-
353,734
Deferred Charges to Future Taxation:
Funded
190,676,693
194,768,235
Unfunded
65,069,746
73,874,375
Total Assets
262,049,895
$
288,202,794
$
Liabilities, Reserves and Fund Balance
Fiscal Year Adjustment Bonds Payable
-
$
665,000
$
General Serial Bonds Payable
114,853,257
113,885,134
School Serial Bonds Payable
75,496,174
79,751,385
Green Trust Loan Payable
226,791
266,491
Demolition Loan Payable
100,471
200,225
Bond Anticipation Notes Payable
58,020,000
59,625,140
School Promissory Notes Payable
-
7,149,375
Improvement Authorizations:
Funded
537,187
1,520,815
Unfunded
9,246,946
7,339,941
Contracts Payable
1,461,135
1,493,539
Interfunds Payable - Current Fund
97,118
630,071
Interfunds Payable - HUD Grants Trust Fund
3
-
Capital Improvement Fund
470,577
665,577
Reserve for Capital Improvements-Veteran's Stadium
25,000
25,000
Reserve for Debt Service-BLRA
1,341,641
1,341,506
Reserve for Retirement of Debt
-
13,470,000
261,876,300
288,029,199
Fund Balance
173,595
173,595
Total Liabilities, Reserves and Fund Balance
262,049,895
$
288,202,794
$
and 2014, respectively
There were Bonds and Notes Authorized But Not Issued of $7,049,746 and $7,099,860 at December 31, 2015
156
Exhibit C-1
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF FUND BALANCE
Balance: December 31, 2015 and 2014
173,595
$
157
Exhibit C-2
Sheet 1 of 2
Balance
Cash
Cash
Transfers
Balance,
Dec. 31, 2014
Receipts
Disbursements
From
To
Dec. 31, 2015
Capital Improvement Fund
665,577
$
-
$
-
$
195,000
$
-
$
470,577
$
Due to (from) Current Fund
630,071
5,645,143
929,593
8,010,000
2,761,497
97,118
Due to (from) CDBG Trust
(353,734)
-
-
-
353,737
3
Grants Receivable
(1,219,217)
-
-
1,125,000
-
(2,344,217)
Contracts Payable
1,493,539
-
5,334,349
-
5,301,945
1,461,135
Reserve for Debt Retirement
13,470,000
-
13,470,000
-
-
-
Reserve for Debt Service - BLRA
1,341,506
135
-
-
-
1,341,641
Reserve for Veteran's Stadium Improvements
25,000
-
-
-
-
25,000
Fund Balance
173,595
-
-
-
-
173,595
Improvement Authorizations:
O-93-33
Acquisition of Land
(15,318)
15,318
-
-
-
-
O-95-39
Various School Building Improvements
(300)
300
-
-
-
-
O-96-02
Refunding of Tax Appeals
(560)
560
-
-
-
-
O-99-14
Various Capital Improvements
63,324
10,556
-
24,000
-
49,880
O-99-31
Demolition of Unsafe Buildings
(6,313)
6,313
-
36,000
-
(36,000)
O-01-12
Various Capital Improvements
(27,293)
27,293
-
-
-
-
O-03-24
Various Capital Improvements
13,992
-
-
-
-
13,992
O-03-32
Various Capital Improvements
(330)
330
-
-
-
-
O-04-02
Acquisition of an Easement in Land
12,568
-
-
-
12,568
O-07-02
Various Infrastructure Improvements
147,193
-
-
-
147,193
O-07-43
Bayonne Medicare Center
19,832
-
-
11,250
-
8,582
O-12-39
Street Paving / Public Works Vehicles
36,600
-
-
-
36,600
O-13-13
Refunding of Tax Appeals
123,170
-
-
11,250
-
111,920
O-13-31
Paving of Various Streets
200,000
-
-
200,000
-
-
O-14-01
Purchase of Various Equipment and Repair
of Various Public Facilities-Sandy
1,039,331
-
-
1,039,331
-
-
O-14-21
Paving of Various Streets-CDBG
155,000
-
-
155,000
-
-
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
ANALYSIS OF CASH AND INVESTMENTS
158
Exhibit C-2
Sheet 2 of 2
Balance
Cash
Cash
Transfers
Balance,
Dec. 31, 2014
Receipts
Disbursements
From
To
Dec. 31, 2015
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
ANALYSIS OF CASH AND INVESTMENTS
O-15-16
Various Capital Improvements
-
$
-
$
-
$
3,477,998
$
3,975,000
$
497,002
$
O-15-23
Various Capital Improvements
-
-
-
700,853
1,125,000
424,147
O-15-29
Refunding of Tax Appeals
-
-
-
2,761,497
4,230,000
1,468,503
17,987,233
$
5,705,948
$
19,733,942
$
17,747,179
$
17,747,179
$
3,959,239
$
159
Exhibit C-2a
Sheet 1 of 2
Bond
Balance,
Balance Sheet
Improvement Authorizations
Future Taxation
Anticipation
Dec. 31, 2015
Accounts
Funded
Unfunded
Unfunded
Notes
Capital Improvement Fund
470,577
$
470,577
$
-
$
-
$
-
$
-
$
Due to (from) Current Fund
97,118
97,118
-
-
-
-
Due to (from) CDBG Trust
3
3
-
-
-
-
Grants Receivable
(2,344,217)
(2,344,217)
-
-
-
-
Contracts Payable
1,461,135
1,461,135
-
-
-
-
Reserve for Debt Retirement
-
-
-
-
-
-
Reserve for Debt Service-BLRA
1,341,641
1,341,641
Reserve for Capital Improvements-Veteran's Stadium
25,000
25,000
-
-
-
-
Fund Balance
173,595
173,595
-
-
-
-
Improvement Authorizations:
O-99-14
Various Capital Improvements
49,880
-
49,880
-
-
-
O-99-31
Demolition of Unsafe Buildings
(36,000)
-
-
273,213
(309,213)
-
O-01-12
Various Capital Improvements
-
-
-
-
-
-
O-03-24
Various Capital Improvements
13,992
-
13,992
533
(533)
-
O-04-02
Acquisition of an Easement in Land
12,568
-
12,568
-
-
-
O-06-35
Citywide Communication Systems
-
-
-
-
(3,205,171)
3,205,171
O-07-02
Various Infrastructure Improvements
147,193
-
-
147,193
(935,972)
935,972
O-07-43
Bayonne Medicare Center
8,582
-
-
8,582
(1,075,000)
1,075,000
O-07-44
Refunding Tax Appeals
-
-
-
-
(60,857)
60,857
Charges To
Deferred
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
ANALYSIS OF CASH AND CASH EQUIVALENTS ENDING BALANCE
160
Exhibit C-2a
Sheet 2 of 2
Bond
Balance,
Balance Sheet
Improvement Authorizations
Future Taxation
Anticipation
Dec. 31, 2015
Accounts
Funded
Unfunded
Unfunded
Notes
Charges To
Deferred
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
ANALYSIS OF CASH AND CASH EQUIVALENTS ENDING BALANCE
Improvement Authorizations (continued):
O-11-02
Refunding of Tax Appeals
-
$
-
$
-
$
-
$
(458,000)
$
458,000
$
O-12-39
Street Paving / Public Works Vehicles
36,600
-
36,600
-
-
-
O-13-03
School Refunding Bonds
-
-
-
3,700,000
(3,700,000)
-
O-13-13
Refunding of Tax Appeals
111,920
-
-
111,920
(1,800,000)
1,800,000
O-13-23
BLRA Dissolution
-
-
-
3,040,000
(45,515,000)
42,475,000
O-15-16
Various Capital Improvements
497,002
-
497,002
(3,780,000)
3,780,000
O-15-23
Various Capital Improvements
424,147
-
424,147
-
-
O-15-29
Refunding of Tax Appeals
1,468,503
-
1,468,503
(4,230,000)
4,230,000
3,959,239
$
1,224,852
$
537,187
$
9,246,946
$
(65,069,746)
$
58,020,000
$
161
Exhibit C-3
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - FUNDED
Balance: December 31, 2014
194,768,235
$
Increased By:
General Serial Bonds
3,020,000
$
School Serial Bonds
1,639,000
4,659,000
199,427,235
Decreased by Payments for:
General Serial Bonds Payable
2,051,877
Fiscal Year Adjustment Bonds
665,000
School Serial Bonds
5,894,211
State Loans Payable:
Green Trust Loans
39,700
Demolition Loans
99,754
8,750,542
Balance: December 31, 2015
190,676,693
$
162
Exhibit C-4
Decreased by
Decreased by
Decreased by
Increased by
Notes Paid
Funded by
Paid by
Bonds & Notes
Ordinance
Balance
Improvement
with
Budget
Budget
Balance
Notes
Authorized But
Number
Improvement Description
Dec. 31, 2014
Authorizations
Reserve Funds
Appropriation
Appropriation
Dec. 31, 2015
Payable
Not Issued
Expended
Unexpended
City Improvements:
O-93-33
Acquisition of Land
15,318
$
-
$
-
$
15,318
$
-
$
-
$
-
$
-
$
-
$
-
$
O-96-02
Refunding of Tax Appeals
560
-
-
560
-
-
-
-
-
-
O-99-31
Demolition of Unsafe Buildings
315,526
-
-
6,313
-
309,213
-
309,213
36,000
273,213
O-01-12
Various Capital Improvements
27,293
-
-
27,293
-
-
-
-
-
-
O-03-24
Various School Improvements
533
-
-
-
-
533
-
533
-
533
O-04-02 /
O-06-01
Acquisition / Easement of Land
6,322,094
-
6,321,000
-
1,094
-
-
-
-
-
O-06-35
Citywide Communication System
3,472,360
-
-
-
267,189
3,205,171
3,205,171
-
-
-
O-07-02
Various Capital Improvements
1,024,640
-
-
-
88,668
935,972
935,972
-
-
-
O-07-43
Bayonne Medical Center
2,075,000
-
-
-
1,000,000
1,075,000
1,075,000
-
-
-
O-07-44
Refunding of Tax Appeals
460,000
-
-
-
399,143
60,857
60,857
-
-
-
O-11-02
Refunding of Tax Appeals
916,000
-
-
-
458,000
458,000
458,000
-
-
-
O-13-13
Refunding Tax Appeals
2,250,000
-
-
-
450,000
1,800,000
1,800,000
-
-
-
O-13-23
BLRA Dissolution
46,145,046
-
-
-
630,046
45,515,000
42,475,000
3,040,000
-
3,040,000
O-15-16
Various Capital Improvements
-
3,780,000
-
-
-
3,780,000
3,780,000
-
-
-
O-15-29
Refunding of Tax Appeals
-
4,230,000
-
-
-
4,230,000
4,230,000
-
-
-
School Improvements:
O-95-39
Various Improvements to School Buildings
300
-
-
300
-
-
-
-
-
-
O-03-32
Various School Improvements
330
-
-
330
-
-
-
-
-
-
O-09-23
Various School Improvements
7,149,375
-
7,149,000
-
375
-
-
-
-
-
O-13-03
School Refunding Bonds
3,700,000
-
-
-
-
3,700,000
-
3,700,000
-
3,700,000
73,874,375
$
8,010,000
$
13,470,000
$
50,114
$
3,294,515
$
65,069,746
$
58,020,000
$
7,049,746
$
36,000
$
7,013,746
$
Bond Anticipation Notes Payable
3,294,140
$
School Promissory Notes Payable
375
3,294,515
$
Improvement Authorizations
Non-Financed
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
Analysis of Ending Balance
163
Exhibit C-5
SCHEDULE OF GRANTS RECEIVABLE
Balance
Current Year
Balance
Dec. 31, 2014
Grant Awards
Dec. 31, 2015
New Jersey Department of Transportation
2005 (and prior) Awards
329,347
$
-
$
329,347
$
O-13-26: Paving of Various Streets
100,870
-
100,870
Green Acres Trust
2006 (and prior) Awards
767,000
-
767,000
O-15-23: Veterans Stadium
-
500,000
500,000
Community Development Block Grant
2001 (and prior) Awards
22,000
-
22,000
Hudson County Open Space
O-15-23: ADA Park at 16th Street Park
-
250,000
250,000
O-15-23: ADA Equipment at Clark Park
-
375,000
375,000
1,219,217
$
1,125,000
$
2,344,217
$
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
164
Exhibit C-6
Sheet 1 of 4
Maturities of Bonds Outstanding
December 31, 2015
Paid By
Maturity
Principal
Interest
Balance
Budget
Bonds
Balance
Purpose
Date
Amount
Date
Amount
Rate
Dec. 31, 2014
Increase
Appropriation
Refunded
Dec. 31, 2015
Early Retirement Incentive
1/15/2003
15,795,000
$
1/15/2016
320,000
$
5.050%
15,250,000
$
-
$
270,000
$
-
$
14,980,000
$
Program Refunding Bonds
1/15/2017
150,000
5.050%
1/15/2018
200,000
5.050%
1/15/2019
250,000
5.680%
1/15/2020
350,000
5.680%
1/15/2021
450,000
5.680%
1/15/2022
400,000
5.680%
1/15/2023
470,000
5.680%
1/15/2024
600,000
5.680%
1/15/2025
700,000
5.680%
1/15/2026
800,000
5.680%
1/15/2027
935,000
5.680%
1/15/2028
1,080,000
5.680%
1/15/2029
1,250,000
5.680%
1/15/2030
1,435,000
5.680%
1/15/2031
1,640,000
5.680%
1/15/2032
1,855,000
5.680%
1/15/2033
2,095,000
5.680%
Capital Appreciation Bonds
7/3/2003
6,123,000
7/1/2016
399,893
4.540%
4,193,134
-
424,877
-
3,768,257
7/1/2017
575,214
4.660%
7/1/2018
550,234
4.760%
7/1/2019
525,180
4.860%
7/1/2020
474,837
4.950%
7/1/2021
450,000
5.040%
7/1/2022
424,944
5.110%
7/1/2023
367,955
5.170%
Hudson County Improvement
10/24/2008
10,000,000
8/1/2016
850,000
5.000%
8,065,000
-
270,000
-
7,795,000
Authority
8/1/2017
1,045,000
5.000%
8/1/2018
665,000
5.000%
8/1/2019
635,000
5.000%
8/1/2020
590,000
5.000%
8/1/2021
565,000
5.000%
8/1/2022
650,000
5.000%
8/1/2023
650,000
5.000%
8/1/2024
650,000
5.000%
8/1/2025
1,495,000
5.000%
Original Issue
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF GENERAL SERIAL BONDS PAYABLE
165
Exhibit C-6
Sheet 2 of 4
Maturities of Bonds Outstanding
December 31, 2015
Paid By
Maturity
Principal
Interest
Balance
Budget
Bonds
Balance
Purpose
Date
Amount
Date
Amount
Rate
Dec. 31, 2014
Increase
Appropriation
Refunded
Dec. 31, 2015
Original Issue
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF GENERAL SERIAL BONDS PAYABLE
General Improvement
6/24/2009
67,625,000
$
7/1/2016
355,000
$
5.000%
67,040,000
$
-
$
290,000
$
-
$
66,750,000
$
Infrastructure Bond
7/1/2017
590,000
5.000%
7/1/2018
695,000
5.000%
7/1/2019
765,000
5.000%
7/1/2020
850,000
5.000%
7/1/2021
960,000
5.000%
7/1/2022
1,035,000
5.000%
7/1/2023
1,100,000
5.000%
7/1/2024
670,000
5.000%
7/1/2025
2,220,000
5.000%
7/1/2026
2,255,000
5.000%
7/1/2027
2,295,000
5.250%
7/1/2028
2,320,000
5.250%
7/1/2029
2,345,000
5.250%
7/1/2030
2,365,000
5.250%
7/1/2031
2,385,000
5.750%
7/1/2032
2,400,000
5.750%
7/1/2033
4,840,000
5.750%
7/1/2034
5,150,000
5.750%
7/1/2035
5,480,000
5.750%
7/1/2036
5,830,000
5.500%
7/1/2037
6,205,000
5.500%
7/1/2038
6,605,000
5.500%
7/1/2039
7,035,000
5.500%
Redevelopment Agency
8/15/2013
13,225,000
4/1/2016
235,000
6.375%
13,015,000
-
220,000
(11,755,000)
1,040,000
Revenue Bond
4/1/2017
250,000
6.375%
4/1/2018
270,000
6.375%
4/1/2019
285,000
6.375%
166
Exhibit C-6
Sheet 3 of 4
Maturities of Bonds Outstanding
December 31, 2015
Paid By
Maturity
Principal
Interest
Balance
Budget
Bonds
Balance
Purpose
Date
Amount
Date
Amount
Rate
Dec. 31, 2014
Increase
Appropriation
Refunded
Dec. 31, 2015
Original Issue
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF GENERAL SERIAL BONDS PAYABLE
Special Assessment Bonds
11/19/2014
6,322,000
$
11/15/2016
320,000
$
5.000%
6,322,000
$
-
$
322,000
$
-
$
6,000,000
$
11/15/2017
320,000
5.000%
11/15/2018
320,000
5.000%
11/15/2019
315,000
5.000%
11/15/2020
315,000
5.000%
11/15/2021
315,000
5.000%
11/15/2022
315,000
2.250%
11/15/2023
315,000
2.500%
11/15/2024
315,000
2.750%
11/15/2025
315,000
3.000%
11/15/2026
315,000
3.000%
11/15/2027
315,000
3.000%
11/15/2028
315,000
3.125%
11/15/2029
315,000
3.125%
11/15/2030
315,000
3.250%
11/15/2031
315,000
3.375%
11/15/2032
315,000
3.500%
11/15/2033
315,000
3.500%
11/15/2034
315,000
3.500%
General Obligation
6/10/2015
14,775,000
8/1/2016
180,000
2.000%
-
3,020,000
255,000
11,755,000
14,520,000
Refunding Bonds
8/1/2017
185,000
2.000%
8/1/2018
190,000
2.000%
8/1/2019
190,000
4.000%
8/1/2020
495,000
4.000%
8/1/2021
510,000
4.000%
8/1/2022
535,000
4.000%
8/1/2023
555,000
5.000%
8/1/2024
580,000
5.000%
8/1/2025
610,000
5.000%
8/1/2026
635,000
5.000%
8/1/2027
665,000
4.000%
8/1/2028
690,000
4.000%
8/1/2029
715,000
4.000%
8/1/2030
740,000
4.000%
8/1/2031
775,000
4.000%
8/1/2032
800,000
4.000%
167
Exhibit C-6
Sheet 4 of 4
Maturities of Bonds Outstanding
December 31, 2015
Paid By
Maturity
Principal
Interest
Balance
Budget
Bonds
Balance
Purpose
Date
Amount
Date
Amount
Rate
Dec. 31, 2014
Increase
Appropriation
Refunded
Dec. 31, 2015
Original Issue
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF GENERAL SERIAL BONDS PAYABLE
General Obligation
8/1/2033
830,000
$
4.000%
Refunding Bonds (continued)
8/1/2034
860,000
4.000%
8/1/2035
895,000
4.000%
8/1/2036
925,000
4.125%
8/1/2037
960,000
4.125%
8/1/2038
1,000,000
4.125%
113,885,134
$
3,020,000
$
2,051,877
$
-
$
114,853,257
$
168
Exhibit C-7
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF FISCAL YEAR ADJUSTMENT BONDS PAYABLE
Maturities of Bonds Outstanding
December 31, 2015
Paid By
Original Issue
Maturity
Principal
Interest
Balance
Budget
Balance
Purpose
Date
Amount
Date
Amount
Rate
Dec. 31, 2014
Appropriation
Dec. 31, 2015
Fiscal Year Adjustment
Refunding Bonds, Series 2003
4/1/2003
4,100,000
$
n/a
n/a
n/a
665,000
$
665,000
$
-
$
665,000
$
665,000
$
-
$
169
Exhibit C-8
Sheet 1 of 3
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF SCHOOL SERIAL BONDS PAYABLE
Maturities of Bonds Outstanding
December 31, 2015
Paid By
Maturity
Principal
Interest
Balance
Budget
Bonds
Balance
Purpose
Date
Amount
Date
Amount
Rate
Dec. 31, 2014
Increase
Appropriation
Refunded
Dec. 31, 2015
School Refunding Bonds
04/01/2003
3,965,000
$
01/15/2016
410,000
$
5.000%
3,965,000
$
-
$
-
$
-
$
3,965,000
$
01/15/2017
435,000
5.000%
01/15/2018
455,000
5.250%
01/15/2019
480,000
5.250%
01/15/2020
505,000
5.500%
01/15/2021
530,000
5.500%
01/15/2022
560,000
5.500%
01/15/2023
590,000
5.500%
Capital Appreciation Bonds
02/15/2003
4,753,739
02/15/2016
369,188
4.488%
2,659,283
-
355,260
-
2,304,023
02/15/2017
370,177
4.576%
02/15/2018
349,782
4.654%
02/15/2019
329,960
4.733%
02/15/2020
309,887
4.812%
02/15/2021
300,014
4.903%
02/15/2022
275,015
4.974%
Capital Appreciation Bonds
07/03/2003
12,381,097
07/01/2016
1,051,052
4.340%
8,933,102
-
1,048,951
-
7,884,151
07/01/2017
999,640
4.460%
07/01/2018
1,100,580
4.560%
07/01/2019
1,050,637
4.660%
07/01/2020
989,235
4.750%
07/01/2021
935,966
4.840%
07/01/2022
875,614
4.910%
07/01/2023
881,427
4.960%
School Bonds
12/15/2004
55,309,000
07/15/2016
315,000
4.250%
6,300,000
-
2,700,000
-
3,600,000
07/15/2017
315,000
4.250%
07/15/2018
335,000
4.250%
07/15/2019
335,000
4.250%
07/15/2020
360,000
4.300%
07/15/2021
360,000
4.380%
07/15/2022
380,000
4.400%
07/15/2023
380,000
4.500%
07/15/2024
400,000
4.500%
07/15/2025
420,000
4.500%
Original Issue
170
Exhibit C-8
Sheet 2 of 3
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF SCHOOL SERIAL BONDS PAYABLE
Maturities of Bonds Outstanding
December 31, 2015
Paid By
Maturity
Principal
Interest
Balance
Budget
Bonds
Balance
Purpose
Date
Amount
Date
Amount
Rate
Dec. 31, 2014
Increase
Appropriation
Refunded
Dec. 31, 2015
Original Issue
School Bonds
10/24/2008
15,636,000
$
08/01/2016
325,000
$
6.000%
15,186,000
$
-
$
300,000
$
(13,836,000)
$
1,050,000
$
(NJ School Bond Reserve Act
08/01/2017
350,000
6.000%
P.L. 1980, c. 72)
08/01/2018
375,000
6.000%
Early Retirement
05/07/2009
10,920,000
06/01/2016
905,000
5.750%
7,180,000
-
860,000
-
6,320,000
Incentive Funding Bonds
06/01/2017
960,000
5.750%
06/01/2018
1,015,000
6.250%
06/01/2019
1,080,000
6.250%
06/01/2020
1,145,000
6.250%
06/01/2021
1,215,000
6.250%
School Bonds, Series 2014B
11/19/2014
6,121,000
11/15/2016
220,000
4.000%
6,121,000
-
215,000
-
5,906,000
11/15/2017
225,000
5.000%
11/15/2018
235,000
5.000%
11/15/2019
240,000
5.000%
11/15/2020
250,000
5.000%
11/15/2021
255,000
4.000%
11/15/2022
270,000
2.250%
11/15/2023
280,000
2.500%
11/15/2024
290,000
3.000%
11/15/2025
305,000
3.000%
11/15/2026
320,000
3.000%
11/15/2027
330,000
3.000%
11/15/2028
345,000
3.000%
11/15/2029
355,000
3.125%
11/15/2030
370,000
3.125%
11/15/2031
385,000
3.250%
11/15/2032
395,000
3.250%
11/15/2033
410,000
3.375%
11/15/2034
426,000
3.500%
171
Exhibit C-8
Sheet 3 of 3
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF SCHOOL SERIAL BONDS PAYABLE
Maturities of Bonds Outstanding
December 31, 2015
Paid By
Maturity
Principal
Interest
Balance
Budget
Bonds
Balance
Purpose
Date
Amount
Date
Amount
Rate
Dec. 31, 2014
Increase
Appropriation
Refunded
Dec. 31, 2015
Original Issue
School Bonds, Series 2014C
11/19/2014
1,027,000
$
11/15/2016
140,000
$
2.000%
1,027,000
$
-
$
140,000
$
-
$
887,000
$
(Federally Taxable)
11/15/2017
140,000
3.000%
11/15/2018
145,000
3.000%
11/15/2019
150,000
3.000%
11/15/2020
155,000
3.000%
11/15/2021
157,000
3.250%
School Refunding Bonds
08/13/2014
28,380,000
07/15/2016
2,505,000
3.000%
28,380,000
-
-
-
28,380,000
07/15/2017
2,485,000
4.000%
07/15/2018
2,650,000
4.000%
07/15/2019
2,640,000
4.000%
07/15/2020
2,800,000
4.000%
07/15/2021
2,800,000
5.000%
07/15/2022
2,995,000
5.000%
07/15/2023
3,005,000
5.000%
07/15/2024
3,180,000
4.000%
07/15/2025
3,320,000
3.000%
School Refunding Bonds
06/10/2015
15,475,000
8/1/2016
100,000
2.000%
-
1,639,000
275,000
13,836,000
15,200,000
(NJ School Bond Reserve Act
8/1/2017
105,000
2.000%
P.L. 1980, c. 72)
8/1/2018
105,000
2.000%
8/1/2019
505,000
5.000%
8/1/2020
510,000
5.000%
8/1/2021
535,000
5.000%
8/1/2022
560,000
5.000%
8/1/2023
585,000
5.000%
8/1/2024
610,000
5.000%
8/1/2025
615,000
5.000%
8/1/2026
865,000
5.000%
8/1/2027
2,360,000
3.750%
8/1/2028
2,565,000
3.750%
8/1/2029
2,760,000
5.000%
8/1/2030
2,420,000
5.000%
79,751,385
$
1,639,000
$
5,894,211
$
-
$
75,496,174
$
172
Exhibit C-9
Sheet 1 of 2
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF GREEN TRUST LOANS PAYABLE
Maturities of Bonds Outstanding
Paid By
Balance
Budget
Balance
Description of Loan
Date
Amount
Date
Interest
Principal
Dec. 31, 2014
Appropriation
Dec. 31, 2015
1983 Green Trust
1998
450,000
$
3/9/2016
679
$
13,312
$
94,135
$
26,230
$
67,905
$
9/9/2016
546
13,445
3/9/2017
411
13,580
9/9/2017
276
13,715
3/9/2018
139
13,853
1995 GFB
2006
171,000
2/9/2016
1,003
4,314
108,755
8,500
100,255
8/9/2016
959
4,357
2/9/2017
916
4,401
8/9/2017
872
4,445
2/9/2018
827
4,489
8/9/2018
783
4,534
2/9/2019
737
4,579
8/9/2019
691
4,625
2/9/2020
645
4,672
8/9/2020
598
4,718
2/9/2021
551
4,765
8/9/2021
504
4,813
2/9/2022
455
4,861
8/9/2022
407
4,910
2/9/2023
358
4,959
8/9/2023
308
5,009
2/9/2024
258
5,059
8/9/2024
207
5,109
2/9/2025
156
5,160
8/9/2025
105
5,212
2/9/2026
53
5,264
Original Issue
December 31, 2015
173
Exhibit C-9
Sheet 2 of 2
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF GREEN TRUST LOANS PAYABLE
Maturities of Bonds Outstanding
Paid By
Balance
Budget
Balance
Description of Loan
Date
Amount
Date
Interest
Principal
Dec. 31, 2014
Appropriation
Dec. 31, 2015
Original Issue
December 31, 2015
95GT
2006
100,000
$
2/10/2016
586
$
2,523
$
63,601
$
4,970
$
58,631
$
8/10/2016
561
2,548
2/10/2017
536
2,575
8/10/2017
510
2,599
2/10/2018
484
2,625
8/10/2018
458
2,652
2/10/2019
431
2,678
8/10/2019
404
2,705
2/10/2020
377
2,732
8/10/2020
350
2,759
2/10/2021
322
2,787
8/10/2021
295
2,815
2/10/2022
266
2,843
8/10/2022
238
2,871
2/10/2023
209
2,900
8/10/2023
180
2,929
2/10/2024
151
2,958
8/10/2024
121
2,988
2/10/2025
91
3,018
8/10/2025
61
3,048
2/10/2026
31
3,078
266,491
$
39,700
$
226,791
$
174
Exhibit C-10
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF DEMOLITION LOAN PAYABLE
Maturities of Bonds Outstanding
Paid By
Date of
December 31, 2015
Interest
Balance
Budget
Balance
Description of Loan
Issue
Amount
Date
Amount
Rate
Dec. 31, 2014
Appropriation
Dec. 31, 2015
Demolition Loan
10/23/2006
450,000
$
10/23/2016
100,471
0.720%
200,225
$
99,754
$
100,471
$
200,225
$
99,754
$
100,471
$
Original
175
Exhibit C-11
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF GENERAL BOND ANTICIPATION NOTES PAYABLE
Paid from 2014
Paid by Budget
Ordinance
Date of
Date of
Date of
Interest
Balance
New
Bond Proceeds
Appropriation/
Balance
Number
Purpose
Issue
Amount
Issue
Maturity
Rate
Dec. 31, 2014
Issues
Refunded
Reserved
Proceeds
Dec. 31, 2015
HCIA Tax-Exempt County-Guaranteed Pooled Notes, Series 2014 U-1A (Local Unit Loan Program)
O-06-35
Citywide Communication Systems
03/09/2007
5,075,000
$
06/08/2014
07/15/2015
1.250%
3,472,360
$
-
$
(3,205,171)
$
-
$
267,189
$
-
$
O-07-02
Various Capital Improvements
03/09/2007
1,690,000
06/08/2014
07/15/2015
1.250%
1,024,640
-
(935,972)
-
88,668
-
O-07-44
Refunding Tax Appeals
06/30/2008
2,800,000
06/08/2014
07/15/2015
1.250%
460,000
-
(60,857)
-
399,143
-
4,957,000
-
(4,202,000)
-
755,000
-
HCIA Tax-Exempt County-Guaranteed Pooled Notes, Series 2014 U-1B (Local Unit Loan Program)
O-04-02 /
O-06-01
Acquisition / Easement of Land
05/13/2005
7,000,000
06/18/2014
01/15/2015
1.300%
6,322,094
-
-
6,321,000
1,094
-
6,322,094
-
-
6,321,000
1,094
-
HCIA Federally Taxable County-Guaranteed Pooled Notes, Series 2014 U-2A (Local Unit Loan Program)
O-07-43
Bayonne Medical Center
11/26/2007
6,200,000
07/15/2014
07/15/2015
0.900%
2,075,000
-
(1,075,000)
-
1,000,000
-
O-13-23
BLRA Dissolution
07/25/2013
58,735,000
07/15/2014
07/15/2015
0.900%
43,105,046
-
(42,475,000)
-
630,046
-
45,180,046
-
(43,550,000)
-
1,630,046
-
Tax Appeal Refunding Notes
O-11-02
Refunding Tax Appeals
03/31/2011
2,290,000
03/28/2014
03/27/2015
1.750%
916,000
-
(458,000)
-
458,000
-
O-13-13
Refunding Tax Appeals
04/24/2014
2,250,000
04/24/2014
03/27/2015
1.500%
2,250,000
-
(1,800,000)
-
450,000
-
3,166,000
-
(2,258,000)
-
908,000
-
HCIA Tax-Exempt County-Guaranteed Pooled Notes, Series 2015 X-1A (Local Unit Loan Program)
O-06-35
Citywide Communication Systems
03/09/2007
5,075,000
06/17/2015
07/06/2016
2.000%
-
-
3,205,171
-
-
3,205,171
O-07-02
Various Capital Improvements
03/09/2007
1,690,000
06/17/2015
07/06/2016
2.000%
-
-
935,972
-
-
935,972
O-07-44
Refunding Tax Appeals
06/30/2008
2,800,000
06/17/2015
07/06/2016
2.000%
-
-
60,857
-
-
60,857
O-15-16
Various Capital Improvements
07/06/2015
3,780,000
06/17/2015
07/06/2016
2.000%
-
3,780,000
-
-
-
3,780,000
-
3,780,000
4,202,000
-
-
7,982,000
HCIA Federally Taxable County-Guaranteed Pooled Notes, Series 2015 X-2A (Local Unit Loan Program)
O-07-43
Bayonne Medical Center
11/26/2007
6,200,000
07/06/2015
07/06/2016
1.150%
-
-
1,075,000
-
-
1,075,000
O-13-23
BLRA Dissolution
07/25/2013
58,735,000
07/06/2015
07/06/2016
1.150%
-
-
42,475,000
-
-
42,475,000
-
-
43,550,000
-
-
43,550,000
Tax Appeal Refunding Notes
O-11-02
Refunding Tax Appeals
03/31/2011
2,290,000
06/17/2015
07/06/2016
2.000%
-
-
458,000
-
-
458,000
O-13-13
Refunding Tax Appeals
04/24/2014
2,250,000
06/17/2015
07/06/2016
2.000%
-
-
1,800,000
-
-
1,800,000
O-15-29
Refunding Tax Appeals
12/22/2015
4,230,000
12/02/2015
07/06/2016
1.250%
-
4,230,000
-
-
-
4,230,000
-
4,230,000
2,258,000
-
-
6,488,000
59,625,140
$
8,010,000
$
-
$
6,321,000
$
3,294,140
$
58,020,000
$
Original
176
Exhibit C-12
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF SCHOOL PROMISSORY NOTES PAYABLE
Ordinance
Date of
Date of
Maturity
Interest
Balance
Balance
Number
Purpose
Issue
Amount
Issue
Date
Rate
Dec. 31, 2014
Notes Paid
Dec. 31, 2015
HCIA Tax-Exempt County-Guaranteed Pooled Notes, Series 2014 U-1B (Local Unit Loan Program)
O-09-23
Various School Improvements
11/20/2009
6,632,065
07/25/2014
01/15/2015
1.30%
6,121,906
$
6,121,906
$
-
$
HCIA Federally Taxable County-Guaranteed Pooled Notes, Series 2014 U-2B (Local Unit Loan Program)
O-09-23
Various School Improvements
11/20/2009
1,112,685
07/25/2014
01/15/2015
1.27%
1,027,469
1,027,469
-
7,149,375
$
7,149,375
$
-
$
Paid by Proceeds on Reserve from 2014 Bonds
7,149,000
$
Paid by Budget Appropriation
375
7,149,375
$
Original
177
Exhibit C-13
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
Ordinance
Ordinance
Balance: December 31, 2014
Current Year
Paid or
Balance: December 31, 2015
Number
Description
Date
Amount
Funded
Unfunded
Authorizations
Charged
Funded
Unfunded
O-99-14
Various Capital Improvements
06/17/1999
1,025,000
63,324
$
-
$
-
$
13,444
$
49,880
$
-
$
O-99-31
Demolition of Unsafe Buildings
09/29/1999
600,000
-
309,213
-
36,000
-
273,213
O-03-24
Various Capital Improvements
08/20/2003
2,717,000
13,992
533
-
-
13,992
533
O-04-02
Acquisition of an Easement in Land
01/21/2004
4,500,000
12,568
-
-
12,568
O-07-02
Various Capital Improvements
01/24/2007
1,775,000
147,193
-
-
147,193
O-07-43
Bayonne Medical Center
10/23/2007
6,200,000
19,832
-
11,250
8,582
O-12-39
Street Paving / Public Works Vehicles
12/12/2012
265,000
36,600
-
-
-
36,600
-
O-13-03
School Refunding Bonds
02/20/2013
33,000,000
-
3,700,000
-
-
-
3,700,000
O-13-13
Refunding Tax Appeals
05/22/2013
2,250,000
-
123,170
-
11,250
-
111,920
O-13-23
BLRA Dissolution
08/14/2013
75,000,000
-
3,040,000
-
-
-
3,040,000
O-13-31
Paving of Various Streets-CDBG
09/18/2013
200,000
200,000
-
-
200,000
-
-
O-14-01
Purchase of Various Equipment and Repair of
Various Public Facilities-Sandy Damages
01/15/2014
1,677,531
1,039,331
-
-
1,039,331
-
-
O-14-21
Paving of Various Streets-CDBG
07/16/2014
155,000
155,000
-
-
155,000
-
-
O-15-16
Various Capital Improvements
05/20/2015
3,975,000
-
-
3,975,000
3,477,998
-
497,002
O-15-23
Various Capital Improvements
07/22/2015
1,125,000
-
-
1,125,000
700,853
424,147
O-15-29
Refunding Tax Appeals
09/16/2015
4,230,000
-
-
4,230,000
2,761,497
-
1,468,503
1,520,815
$
7,339,941
$
9,330,000
$
8,406,623
$
537,187
$
9,246,946
$
Capital Improvement Fund
195,000
$
2,761,497
$
Reimbursement to Current
Intergovernmental Receivables
1,125,000
353,737
Reimbursement to CDBG
Deferred Charges Unfunded
8,010,000
(10,556)
Cash Receipts
-
5,301,945
Contracts Payable
9,330,000
$
8,406,623
$
178
Exhibit C-14
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF CAPITAL IMPROVEMENT FUND
Balance: December 31, 2014
665,577
$
Decreased by Authorizations:
Ordinance No. O-15-16: Various Capital Improvements
195,000
Balance: December 31, 2015
470,577
$
179
Exhibit C-15
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF RESERVE FOR RETIREMENT OF DEBT
Balance: December 31, 2014
13,470,000
$
Decreased by Payment of:
Bond Anticipation Notes Payable
6,321,000
$
School Promissary Notes Payable
7,149,000
13,470,000
Balance: December 31, 2015
-
$
Exhibit C-16
Balance: December 31, 2014
1,493,539
$
Increased by:
Contracts Payable
5,301,945
6,795,484
Decreased by:
Cash Disbursements
5,334,349
Balance: December 31, 2015
1,461,135
$
SCHEDULE OF CONTRACTS PAYABLE
180
Exhibit C-17
SCHEDULE OF INTERFUNDS (PAYABLE) / RECEIVABLE
HUD Grants
Current
Trust Fund
Fund
Balance: December 31, 2014
353,734
$
(630,071)
$
Increased by Debits:
Deficiency in Reserve Funds Charged to
Current Fund Budget:
Bond Anticipation Notes
-
1,094
School Promissary Notes
-
375
Deferred Charges Funded by
Current Fund Budget Appropriation
-
50,114
Bond Anticipation Notes Issued
-
8,010,000
Interest Payment Due from Current
-
87,410
Cash Disbursements
-
790,600
-
8,939,593
Decreased by Credits:
Reimburse Current - Tax Refunds
Funded by Ordinance
-
2,761,497
Reimburse CDBG
353,737
-
Interest Earned
-
5,783
Cash Receipts
-
5,639,360
353,737
8,406,640
Balance: December 31, 2015
(3)
$
(97,118)
$
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
181
Exhibit C-18
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Funded by
Ordinance
Balance
Debt
Budget
Notes
Balance
Number
Description
Dec. 31, 2014
Authorized
Appropriation
Issued
Dec. 31, 2015
General Improvements:
O-93-33
Acquisition of Land
15,318
$
-
$
15,318
$
-
$
-
$
O-96-02
Refunding of Tax Appeals
560
-
560
-
-
O-99-31
Demolition of Unsafe Buildings
315,526
-
6,313
-
309,213
O-03-24
Various Capital Improvements
533
-
-
-
533
O-13-23
LRA Dissolution
3,040,000
-
-
3,040,000
O-15-16
Various Capital Improvements
-
3,780,000
3,780,000
-
O-15-29
Refunding of Tax Appeals
-
4,230,000
4,230,000
-
Fiscal Year Adjustment Bonds
O-01-12
Refunded Fiscal Year Adjustment Bonds
27,293
-
27,293
-
-
School Improvements:
O-95-39
Various Improvements to School Buildings
300
-
300
-
-
O-03-32
Various School Improvements
330
-
330
-
-
O-13-03
School Refunding Bonds
3,700,000
-
-
3,700,000
7,099,860
$
8,010,000
$
50,114
$
8,010,000
$
7,049,746
$
182
Exhibit C-19
CITY OF BAYONNE
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF RESERVE FOR CAPITAL IMPROVEMENTS - VETERAN'S STADIUM
Balance: December 31, 2015 and 2014
25,000
$
Exhibit C-20
SCHEDULE OF RESERVE FOR DEBT SERVICE-BLRA
Balance: December 31, 2014
1,341,506
$
Increased by:
Interest Earned
135
Balance: December 31, 2015
1,341,641
$
183
SUPPLEMENTARY DATA - PARKING UTILITY FUND
Exhibit D
Sheet 1 of 2
CITY OF BAYONNE
PARKING UTILITY FUND
AS OF DECEMBER 31, 2014 AND 2013
SCHEDULE OF ASSETS, LIABILITIES, RESERVES AND FUND BALANCE
2015
2014
Assets
Operating Fund:
Cash and Cash Equivalents
1,190,250
$
1,128,733
$
Due from Current
-
36
Total Utility Operating Fund Assets
1,190,250
1,128,769
Capital Fund:
Cash and Cash Equivalents
607,609
747,815
Fixed Capital
5,354,861
5,354,861
Fixed Capital Authorized and Uncompleted
1,445,483
1,445,483
Due from Parking Utility Operating Fund
431,807
451,800
Total Utility Capital Fund Assets
7,839,760
7,999,959
Total Utility Fund Assets
9,030,010
$
9,128,728
$
Liabilities, Reserves and Fund Balance
Operating Fund:
Appropriation Reserves
127,178
$
109,954
$
Reserve for Encumbrances
58
193
Accrued Interest on Bonds
44,646
6,292
Interfunds Payable:
Parking Utility Capital Fund
431,807
451,800
Due to Current
293
-
603,982
568,239
Fund Balance
586,268
560,530
Total Utility Operating Fund Liabilities, Reserves and Fund Balance
1,190,250
1,128,769
184
Exhibit D
Sheet 2 of 2
CITY OF BAYONNE
PARKING UTILITY FUND
AS OF DECEMBER 31, 2014 AND 2013
SCHEDULE OF ASSETS, LIABILITIES, RESERVES AND FUND BALANCE
2015
2014
Liabilities, Reserves and Fund Balance
Capital Fund:
Parking Revenue Serial Bonds Payable
2,855,000
$
3,020,000
$
Improvement Authorizations - Funded
253,891
414,090
Due to Bayonne Board of Education
450,000
450,000
Bond Reserve Fund
335,518
335,518
Reserve for Amortization
2,499,861
2,334,861
Reserve for Deferred Amortization
1,445,483
1,445,483
7,839,753
7,999,952
Fund Balance
7
7
Total Utility Capital Fund Liabilities, Reserves and Fund Balance
7,839,760
7,999,959
Total Utility Fund Liabilities, Reserves and Fund Balance
9,030,010
$
9,128,728
$
185
Exhibit D-1
Revenue and Other Income Realized
Fund Balance Utilized
120,000
$
Parking Fees
1,092,350
Ticket Revenues
234,384
Interest on Investments and Deposits
4,508
Other Credits to Income:
Lapse of 2014 Appropriation Reserves
106,548
Miscellaneous Adjustment
3,052
1,560,842
Expenditures
Budget Appropriations
Operating
960,000
Debt Service
316,750
Statutory Expenditures
100,000
1,376,750
Accrued Interest Adjustment
38,354
1,415,104
Statutory Excess to Fund Balance
145,738
Fund Balance, January 1
560,530
706,268
Decreased by:
Utilized as Anticipated Revenue
120,000
Fund Balance, December 31
586,268
$
CITY OF BAYONNE
PARKING UTILITY OPERATING FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF OPERATIONS AND CHANGES IN FUND BALANCE
186
Exhibit D-2
CITY OF BAYONNE
PARKING UTILITY CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF FUND BALANCE
Balance: December 31, 2015 and 2014
7
$
187
Exhibit D-3
CITY OF BAYONNE
PARKING UTILITY OPERATING FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF REVENUES
Adopted
Excess
Budget
Realized
(Deficit)
Operating Surplus Anticipated
120,000
$
120,000
$
-
$
Parking Fees
1,040,250
1,092,350
52,100
Ticket Revenues
215,000
234,384
19,384
Interest on Investments and Deposits
1,500
4,508
3,008
Total Budget Revenues
1,256,750
1,331,242
74,492
Non-Budget Revenues
-
-
-
Total Parking Utility Revenues
1,376,750
$
1,451,242
$
74,492
$
188
Exhibit D-4
Sheet 1 of 2
CITY OF BAYONNE
PARKING UTILITY OPERATING FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF EXPENDITURES
Expended
Adopted
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
Operating:
Salaries and Wages
635,000
$
635,000
$
633,991
$
-
$
1,009
$
-
$
Other Expenses
140,000
140,000
91,822
58
48,120
-
Group Insurance
120,000
120,000
110,674
-
9,326
-
Other Insurance
65,000
65,000
-
-
65,000
-
960,000
960,000
836,487
58
123,455
-
Debt Service:
Bond Principal
170,000
170,000
170,000
-
-
-
Interest on Bonds
146,750
146,750
146,750
-
-
-
316,750
316,750
316,750
-
-
-
Statutory Expenditures:
Public Employees Retirement System
70,000
70,000
70,000
-
-
-
Social Security (O.A.S.I.)
26,000
26,000
22,277
-
3,723
-
Unemployment Compensation Insurance
4,000
4,000
4,000
-
-
-
100,000
100,000
96,277
-
3,723
-
Total Parking Utility Appropriations
1,376,750
$
1,376,750
$
1,249,514
$
58
$
127,178
$
-
$
Appropriations
189
Exhibit D-4
Sheet 2 of 2
CITY OF BAYONNE
PARKING UTILITY OPERATING FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF EXPENDITURES
Expended
Adopted
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
Appropriations
Budget as Adopted
1,376,750
$
-
$
Cash Disbursements
-
1,211,160
Accrued Interest at Dec. 31, 2014
-
(6,292)
Accrued Interest at Dec. 31, 2015
-
44,646
1,376,750
$
1,249,514
$
190
Exhibit D-5
Operating
Capital
Balance: December 31, 2014
1,128,733
$
747,815
$
Increased by Receipts:
Parking Utility Revenues
1,331,242
$
-
$
Interfund Advances
140,206
-
Expenditures paid by Current
577,840
-
Miscellaneous Adjustment
3,052
-
2,052,340
-
3,181,073
747,815
Decreased by Disbursements:
Budget Appropriations
1,376,750
-
Appropriations Reserves
(127,178)
-
Encumbrances
(58)
-
2014 Appropriation Reserves Paid
3,599
-
Improvement Authorization Paid or charged
160,199
-
Interfunds Returned
577,511
140,206
1,990,823
140,206
Balance: December 31, 2015
1,190,250
$
607,609
$
CITY OF BAYONNE
PARKING UTILITY FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF CASH AND CASH EQUIVALENTS
191
Exhibit D-6
Balance
Balance
Improvement
December 31,
Transfers
December 31,
Balance Sheet
Authorizations -
2014
Miscellaneous
From
To
2015
Account
Funded
Due from Parking Utility Operating
(451,800)
$
140,206
$
-
$
160,199
$
(431,807)
$
(431,807)
$
-
$
Due to Bayonne Board of Education
450,000
-
-
-
450,000
450,000
-
Bond Reserve Fund
335,518
-
-
-
335,518
335,518
-
Fund Balance
7
-
-
-
7
7
-
2007
Construction Projects
414,090
-
160,199
-
253,891
-
253,891
747,815
$
140,206
$
160,199
$
160,199
$
607,609
$
353,718
$
253,891
$
ANALYSIS OF PARKING UTILITY CAPITAL CASH AND CASH EQUIVALENTS
CITY OF BAYONNE
PARKING UTILITY CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
Improvement Authorizations:
Disbursements
Analysis of Ending Balance
192
Exhibit D-7
CITY OF BAYONNE
PARKING UTILITY OPERATING FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF APPROPRIATION RESERVES
Balance after
Paid or
Balance
Reserved
Encumbered
Transfers
Charged
Lapsed
Operating:
Salaries and Wages
1,150
$
-
$
1,150
$
-
$
1,150
$
Other Expenses
39,234
193
39,427
3,599
35,828
Group Insurance
63,947
-
63,947
-
63,947
Other Insurance
-
-
-
-
-
104,331
193
104,524
3,599
100,925
Debt Service:
Bond Principal
-
-
-
-
-
Interest on Bonds
-
-
-
-
-
-
-
-
-
-
Statutory Expenditures:
Public Employees Retirement System
-
-
-
-
-
Social Security (O.A.S.I.)
5,623
-
5,623
-
5,623
Unemployment Compensation Insurance
-
-
-
-
-
5,623
-
5,623
-
5,623
Total Parking Utility Appropriations
109,954
$
193
$
110,147
$
3,599
$
106,548
$
Balance:December 31, 2014
193
Exhibit D-8
Balance: December 31, 2014
6,292
$
Increased by Receipts:
Current Year Interest Accrual
44,646
50,938
Decreased by Disbursements:
Prior Year Interest Accrual
6,292
Balance: December 31, 2015
44,646
$
Principal
Outstanding
Interest
Dec. 31, 2015
Rate
From
To
Period
Amount
370,000
$
5%
12/15/2015
12/31/2015
1/2 Month
771
$
2,485,000
2%
8/1/2015
12/31/2015
5 Months
43,875
44,646
$
CITY OF BAYONNE
PARKING UTILITY OPERATING FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF ACCRUED INTEREST
194
Exhibit D-9
Current
Utility
Total
Fund
Capital
Balance: December 31, 2014
451,764
$
(36)
$
451,800
$
Increased by:
Expenditures Paid by Current
577,840
577,840
-
Cash Disbursed
140,206
-
140,206
1,169,810
577,804
592,006
Decreased by:
Improvement Authorization Paid or Charged
160,199
-
160,199
Cash Disbursements
577,511
577,511
-
Balance: December 31, 2015
432,100
$
293
$
431,807
$
CITY OF BAYONNE
PARKING UTILITY OPERATING FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF INTERFUNDS (RECEIVABLE)/PAYABLE
195
Exhibit D-10
Balance
Balance
December 31,
December 31,
2015
2014
Parking Lots
1,308,151
$
1,308,151
$
Parking Lots Improvements
2,401,172
2,401,172
Meters and Equipment
837,599
837,599
Office Equipment
33,206
33,206
Transportation Equipment
319,902
319,902
Capital Projects
454,831
454,831
5,354,861
$
5,354,861
$
CITY OF BAYONNE
PARKING UTILITY CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF FIXED CAPITAL
196
Exhibit D-11
Balance
Balance
December 31,
December 31,
Improvement Description
Date
2015
2014
Construction Projects
2007
1,445,483
$
1,445,483
$
1,445,483
$
1,445,483
$
Purchase of Parking Lot from Bayonne Board of Education
450,000
$
450,000
$
Construction Projects
659,965
659,965
Other Reserves
335,518
335,518
1,445,483
$
1,445,483
$
CITY OF BAYONNE
PARKING UTILITY CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
197
Exhibit D-12
Ordinance
Due to Board
Paid or
Due to Board
Improvement Description
Date
Amount
Funded
of Education
Charged
of Education
Funded
Construction Projects
2007
4,000,000
$
414,090
$
450,000
$
160,199
$
450,000
$
253,891
$
414,090
$
450,000
$
160,199
$
450,000
$
253,891
$
CITY OF BAYONNE
PARKING UTILITY CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
Balance: December 31, 2014
Balance: December 31, 2015
198
Exhibit D-13
Balance: December 31, 2014
2,334,861
$
Increased by:
Serial Bond Principal Amortization
215,000
2,549,861
Decreased by:
Issuance of new bonds
50,000
Balance: December 31, 2015
2,499,861
$
CITY OF BAYONNE
PARKING UTILITY CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF RESERVE FOR AMORTIZATION
199
Exhibit D-14
Balance
Balance
December 31,
December 31,
Improvement Description
Date
2015
2014
Construction Projects
2007
1,445,483
$
1,445,483
$
1,445,483
$
1,445,483
$
Purchase of Parking Lot from Bayonne Board of Education
450,000
$
450,000
$
Construction Projects
659,965
659,965
Other Reserves
335,518
335,518
1,445,483
$
1,445,483
$
CITY OF BAYONNE
PARKING UTILITY CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF DEFERRED RESERVE FOR AMORTIZATION
200
Exhibit D-15
CITY OF BAYONNE
PARKING UTILITY CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF PARKING REVENUE SERIAL BONDS PAYABLE
Maturities of Bonds Outstanding
December 31, 2015
Paid By
Original Issue
Maturity
Principal
Interest
Balance
Budget
Balance
Purpose
Date
Amount
Date
Amount
Rate
Dec. 31, 2014
Increase
Bonds Refunded
Appropriation
Dec. 31, 2015
Parking Revenue
6/15/2007
4,000,000
$
6/15/2016
180,000
$
5.000%
3,020,000
$
-
$
(2,480,000)
$
170,000
$
370,000
$
Bonds, Series 2007
6/15/2017
190,000
5.000%
Parking Utility Refunding
Bonds, Series 2015
6/10/2015
2,530,000
8/1/2016
15,000
2.000%
-
$
50,000
$
2,480,000
$
45,000
$
2,485,000
$
8/1/2017
15,000
2.000%
8/1/2018
205,000
2.000%
8/1/2019
210,000
4.000%
8/1/2020
220,000
4.000%
8/1/2021
230,000
4.000%
8/1/2022
235,000
4.000%
8/1/2023
245,000
5.000%
8/1/2024
260,000
5.000%
8/1/2025
275,000
5.000%
8/1/2026
280,000
5.000%
8/1/2027
295,000
4.000%
3,020,000
$
50,000
$
-
$
215,000
$
2,855,000
$
201
SUPPLEMENTARY DATA – GENERAL FIXED ASSETS
Exhibit E
CITY OF BAYONNE
GENERAL FIXED ASSETS
AS OF DECEMBER 31, 2015 AND 2014
SCHEDULE OF GENERAL FIXED ASSETS
2015
2014
Assets
Land
165,984,900
$
165,984,900
$
Buildings
10,233,265
10,233,265
Improvements
4,817,988
4,817,988
Machinery, Equipment & Other
21,309,349
21,309,349
202,345,502
$
202,345,502
$
Investment in Fixed Assets
Investment in General Fixed Assets
202,345,502
$
202,345,502
$
202
Exhibit E-1
CITY OF BAYONNE
GENERAL FIXED ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2015
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY CLASS
Balance
Balance
Dec. 31, 2014
Dec. 31, 2015
Land
165,984,900
$
165,984,900
$
Buildings
10,233,265
10,233,265
Improvements
4,817,988
4,817,988
Machinery, Equipment & Other
21,309,349
21,309,349
202,345,502
$
202,345,502
$
203
SUPPLEMENTARY DATA - PAYROLL AGENCY FUND
Exhibit F
CITY OF BAYONNE
PAYROLL AGENCY FUND
AS OF DECEMBER 31, 2015 AND 2014
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
2015
2014
Assets
Cash
7
$
-
$
Total Assets
7
$
-
$
Liabilities
Due to Current Fund
7
$
-
$
Total Liabilities
7
$
-
$
204
ADDITIONAL INFORMATION RELATING TO
INTERNAL CONTROL AND COMPLIANCE
DONOHUE, GIRONDA, DORIA & TOMKINS, LLC
Certified Public Accountants
310 Broadway
Bayonne, NJ 07002
(201) 437-9000
Fax: (201) 437-1432
E-Mail: dgd@dgdcpas.com
Matthew A. Donohue, CPA
Linda P. Kish, CPA, RMA
Robert A. Gironda, CPA
Mark W. Bednarz, CPA, RMA
Robert G. Doria, CPA (N.J. & N.Y.)
Jason R. Gironda, CPA
Frederick J. Tomkins, CPA, RMA
INDEPENDENT AUDITOR’S REPORT ON INTERNAL
CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members
of the City Council
City of Bayonne, New Jersey
We have audited, in accordance with the auditing standards generally accepted in the United States of
America, the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, and audit requirements prescribed by the
Division of Local Government Services, Department of Community Affairs, State of New Jersey (the
“Division”), the accompanying financial statements – regulatory basis of the City of Bayonne, New
Jersey (the “City”), which comprise the combined balance sheets – regulatory basis, of each fund and
account group as of December 31, 2015 (with comparative totals as of December 31, 2014), the related
statement of revenues, expenditures and changes in fund balance – regulatory basis, of the Current Fund,
General Capital Fund and Parking Utility Operating and Capital Funds, for the year ended December 31,
2015 (with comparative totals for the year ended December 31, 2014), and the related statement of
revenues, expenditures and changes in fund balance – regulatory basis – budget and actual, of the
Current Fund and Parking Utility Operating Fund for the year ended December 31, 2015 (with
comparative totals for the year ended December 31, 2014), and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements and have issued our report
thereon dated January 30, 2017.
As described in Note A, the City prepares its financial statements on a basis of accounting prescribed by
the Division that demonstrates compliance with a modified accrual basis and the budget laws of the
State of New Jersey, which is a special purpose framework of accounting other than accounting
principles generally accepted in the United States of America.
205
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate
in the circumstances for the purposes of expressing our opinions on the financial statements, but not for
the purpose of expressing an opinion of the effectiveness of the City’s internal control. Accordingly, we
do not express an opinion on the effectiveness of the City’s internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal control that
might be material weaknesses or significant deficiencies and therefore, material weaknesses or
significant deficiencies may exist that were not identified. However, as described in the accompanying
schedule of findings and questioned costs, we identified certain deficiencies in internal control that we
consider to be material weaknesses and significant deficiencies.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a
timely basis. We consider the deficiencies described in the accompanying schedule of findings and
questioned costs as finding numbers 2015-003 through 2015-008, to be material weaknesses.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance. We consider the deficiencies described in the accompanying schedule of findings and
questioned costs as findings 2015-001 and 2015-002, to be a significant deficiencies.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
The results of our tests disclosed an instance of noncompliance or other matters that is required to be
reported under Government Auditing Standards and which is described in the accompanying schedule of
findings and questioned costs as Finding 2015-002.
We noted additional instances of noncompliance which are required to be reported under audit
requirements prescribed by the Division, and which are described in the accompanying comments and
recommendations section of this report.
206
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
City’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
DONOHUE, GIRONDA,
DORIA & TOMKINS, LLC
Certified Public Accountants
FREDERICK J. TOMKINS
Registered Municipal Accountant #327
Bayonne, New Jersey
January 30, 2017
207
DONOHUE, GIRONDA, DORIA & TOMKINS, LLC
Certified Public Accountants
310 Broadway
Bayonne, NJ 07002
(201) 437-9000
Fax: (201) 437-1432
E-Mail: dgd@dgdcpas.com
Matthew A. Donohue, CPA
Linda P. Kish, CPA, RMA
Robert A. Gironda, CPA
Mark W. Bednarz, CPA, RMA
Robert G. Doria, CPA (N.J. & N.Y.)
Jason R. Gironda, CPA
Frederick J. Tomkins, CPA, RMA
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE
FOR EACH MAJOR FEDERAL AND STATE PROGRAM AND
ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY
THE UNIFORM GUIDANCE AND NEW JERSEY OMB CIRCULAR 15-08
To the Honorable Mayor and
Members of the City Council
City of Bayonne, New Jersey
Report on Compliance for Each Major Federal and State Program
We have audited the City of Bayonne, New Jersey’s (the City’s) compliance with the types of
compliance requirements described in the OMB Compliance Supplement and the N.J. OMB State
Grant Compliance Supplement that could have a direct and material effect on each of the City’s
major federal and state programs for the year ended December 31, 2015. The City’s major
federal and state programs are identified in the summary of auditor’s results section of the
accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts
and grants applicable to its federal and state programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the City’s major federal
and state programs based on our audit of the types of compliance requirements referred to above.
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; the
audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
and N.J. OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants
and State Aid. Those standards, the Uniform Guidance and N.J. OMB Circular 15-08 require
208
that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material
effect on a major federal or state program occurred. An audit includes examining, on a test basis,
evidence about the City’s compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each
major federal and state program. However, our audit does not provide a legal determination of
the City’s compliance.
Basis for Qualified Opinion on the Community Development Block Grant and Emergency
Shelter Grant
We were not able to obtain sufficient appropriate audit evidence about the compliance of the
City with the Community Development Block Grant and Emergency Shelter Grant as described
in finding numbers 2015-003, and 2015-006 regarding allowable costs, nor were we able to
satisfy ourselves as to the City’s compliance with those requirements by other auditing
procedures.
As described in the accompanying schedule of findings and questioned costs, the City did not
comply with requirements regarding the Community Development Block Grant as described in
finding numbers 2015-004 for Subrecipient Monitoring, 2015-005 for Financial Reporting, 2015-
006 for Reporting, and 2015-007 for Cash Management.
Compliance with such requirements is necessary, in our opinion, for the City to comply with the
requirements applicable to those programs.
Qualified Opinion on the Community Development Block Grant and Emergency Shelter
Grant
In our opinion, except for the noncompliance described in the Basis for Qualified Opinion
paragraph, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on the Community Development
Block Grant and Emergency Shelter Grant.
Unmodified Opinion on Each of the Other Major Federal and State Programs
In our opinion, the City complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its other
major federal and state programs identified in the summary of auditor’s results section of the
accompanying schedule of findings and questions costs for the year ended December 31, 2015.
209
Other Matters
The City’s response to the noncompliance findings identified in our audit is described in the
accompanying schedule of findings and questioned costs. The City’s response was not subjected
to the auditing procedures applied in the audit of compliance and, accordingly, we express no
opinion on the response.
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control
over compliance with the types of compliance requirements referred to above. In planning and
performing our audit of compliance, we considered the City’s internal control over compliance
with the types of requirements that could have a direct and material effect on each major federal
and state program to determine the auditing procedures that are appropriate in the circumstances
for the purpose of expressing our opinion on compliance for each major federal and state
program and to test and report on internal control over compliance in accordance with the
Uniform Guidance and N.J. OMB Circular 15-08, but not for the purpose of expressing an
opinion on the effectiveness of internal control over compliance. Accordingly, we do not
express an opinion on the effectiveness of the City’s internal control over compliance.
Our consideration of internal control over financial reporting was for the limited purpose
described in the preceding paragraph and was not designed to identify all deficiencies in internal
control that might be material weaknesses or significant deficiencies and therefore, material
weaknesses or significant deficiencies may exist that were not identified. However, as discussed
below, we identified certain deficiencies in internal control over compliance that we consider to
be material weaknesses.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal or state program on a timely basis. A material weakness in
internal control over compliance is a deficiency, or combination of deficiencies, in internal
control over compliance, such that there is a reasonable possibility that material noncompliance
with a type of compliance requirement of a federal or state program will not be prevented, or
detected and corrected, on a timely basis. We consider the deficiencies in internal control over
compliance described in the accompanying schedule of findings and questioned costs as Findings
2015-003 through 2015-008, to be material weaknesses.
210
A significant deficiency in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance with a type of compliance requirement of a
federal or state program that is less severe than a material weakness in internal control over
compliance, yet important enough to merit attention by those charged with governance. We
consider the deficiencies described in the accompanying schedule of findings and questioned
costs as findings 2015-001 and 2015-002, to be a significant deficiencies.
The City’s response to the internal control over compliance findings identified in our audit is
described in the accompanying schedule of findings and questioned costs. The City’s response
was not subjected to the auditing procedures applied in the audit of compliance and, accordingly,
we express no opinion on the response.
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance and N.J. OMB Circular 15-08. Accordingly, this report is
not suitable for any other purpose.
DONOHUE, GIRONDA,
DORIA & TOMKINS, LLC
Certified Public Accountants
FREDERICK J. TOMKINS
Registered Municipal Accountant #327
Bayonne, New Jersey
January 30, 2017
211
Schedule 1
Sheet 1 of 3
Federal
State
Funds
Prog. Income/
Funds
CFDA
Account
Grant Period
Program or
Funds
Available
Budget
Paid or
Canceled
Available
Cumulative
Federal Department and Program
Number
Number
From
To
Award Amount
Received
Dec. 31, 2014
Appropriations
Charged
Reappropriated
Dec. 31, 2015
Expenditures
Law Enforcement Block Grant II
16.592
*
10/01/1997
09/30/1999
25,000
$
-
$
23,810
$
-
$
-
$
-
$
23,810
$
1,190
$
Law Enforcement Block Grant III
16.592
*
10/01/1998
09/30/2000
22,000
-
21,581
-
-
214
21,795
419
Law Enforcement Block Grant IX
16.592
*
10/01/2004
09/30/2005
49,918
-
49,918
-
-
-
49,918
-
Total Local Law Enforcement Block Grants Program
-
95,309
-
-
214
95,523
COPS More (Technology)
16.710
*
12/01/1995
11/30/1996
4,800
-
4,742
-
-
(4,742)
-
58
COPS Technology
16.710
*
07/01/2011
06/30/2012
445,092
-
445,092
445,092
-
COPS Universal Hiring Supplemental
16.710
*
09/01/2003
08/31/2006
597,089
-
305,833
(305,833)
-
291,256
COPS - Secure Our Schools (SOS)
16.710
*
07/01/2008
06/30/2009
62,245
-
62,245
62,245
-
Reimbursement of Police Salaries
16.710
*
01/01/2015
12/31/2015
45,464
45,464
-
-
-
-
-
45,464
Reimbursement of Police Salaries
16.710
*
01/01/2014
12/31/2014
54,619
-
-
54,619
54,619
-
54,619
Total COPS Grants
45,464
817,912
54,619
54,619
(310,575)
507,337
Justice Assistance Grant - Annual Round
16.738
*
01/01/2009
12/31/2009
31,708
76
76
31,632
Justice Assistance Grant - 2014
16.738
2014-H3464-NJ-DJ
10/01/2013
09/30/2017
15,715
9
9
15,706
Justice Assistance Grant - 2013
16.738
*
01/01/2013
12/31/2013
16,515
5,757
5,757
10,758
Justice Assistance Grant - 2012
16.738
*
01/01/2012
12/31/2012
19,208
16,715
19,208
(19,208)
-
19,208
Justice Assistance Grant - 2011
16.738
*
01/01/2011
12/31/2011
24,514
95
(95)
-
24,514
Justice Assistance Grant - 2009
16.738
*
01/01/2009
12/31/2009
19,611
19,611
(19,611)
-
19,611
Justice Assistance Grant
16.738
*
07/01/2009
06/30/2010
600,000
15,781
15,781
584,219
Total Justice Assistance Grants
16,715
60,537
-
-
(38,914)
21,623
Byrne Formula / Community Partnership
16.579
1020-100-384-2005
05/22/2001
05/14/2005
458,734
-
27,674
-
-
(27,674)
-
458,734
Total Edward Byrne Memorial Formula Grant Program
-
27,674
-
-
(27,674)
-
Federal Equitable Sharing:
Justice: Reimbursement Police Department
16.unknown
02-213-41713-2-199
01/01/2015
12/31/2015
82,289
$
71,774
$
-
$
82,289
$
33,491
$
511
$
49,309
$
33,491
$
Justice: Reimbursement Police Department
16.unknown
02-213-41713-2-199
01/01/2014
12/31/2014
56,762
-
56,762
56,762
-
56,762
Justice: Reimbursement Police Department
16.unknown
02-213-41713-2-199
01/01/2013
12/31/2013
258,607
12,259
12,259
-
258,607
Treasury: Customs and Border Control
16.unknown
*
07/01/2015
06/30/2016
174,928
-
174,928
80,472
94,456
80,472
Treasury: Customs and Border Control
16.unknown
*
07/01/2014
06/30/2015
6,019
6,019
6,019
-
6,019
Treasury: Customs and Border Control
16.unknown
*
07/01/2013
06/30/2014
10,673
10,673
10,673
-
10,673
Treasury: Customs and Border Control
16.unknown
*
07/01/2012
06/30/2013
15,323
15,323
15,323
-
15,323
Treasury: Customs and Border Control
16.unknown
*
07/01/2011
06/30/2012
500,000
66,041
23,832
23,832
-
500,000
Total Federal Equitable Sharing Program
137,815
124,868
257,217
238,831
511
143,765
Police Vests or Bulletproof Armored Vests
16.606
*
01/01/2015
12/31/2015
41,445
40,373
-
41,445
41,445
-
Police Vests or Bulletproof Armored Vests
16.607
*
01/01/2013
12/31/2013
812
-
812
262
550
262
Police Vests or Bulletproof Armored Vests
16.607
*
01/01/2012
12/31/2012
32,357
-
1,547
1,547
-
32,357
Total Police Vests or Bulletproof Armored Vests
40,373
2,359
41,445
1,809
-
41,995
240,367
$
1,128,659
$
353,281
$
295,259
$
(376,438)
$
810,243
$
U.S. Department of Justice (continued)
CITY OF BAYONNE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2015
Total U.S. Department of Justice
U.S. Department of Justice
See Accompanying Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance.
212
Schedule 1
Sheet 2 of 3
Federal
State
Funds
Prog. Income/
Funds
CFDA
Account
Grant Period
Program or
Funds
Available
Budget
Paid or
Canceled
Available
Cumulative
Federal Department and Program
Number
Number
From
To
Award Amount
Received
Dec. 31, 2014
Appropriations
Charged
Reappropriated
Dec. 31, 2015
Expenditures
CITY OF BAYONNE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2015
Assistance to Firefighter Grants (Regular and ARRA)
FEMA-Assistance to Firefighters Grant
97.044
*
07/01/2015
06/30/2016
45,455
$
-
$
-
$
45,455
$
-
$
-
$
45,455
$
-
$
FEMA-Fire Station Construction - ARRA
97.115
*
07/01/2009
06/30/2010
3,567,491
-
7,654
-
7,654
-
-
3,567,491
FEMA-Assistance to Firefighters Grant
97.044
EMW-2013-FO-04777
06/25/2014
06/24/2015
295,291
266,186
295,291
-
241,639
-
53,652
241,639
FEMA-Assistance to Firefighters Grant - ARRA
97.115
*
07/01/2010
06/30/2011
348,579
-
68,599
-
-
(68,599)
-
279,980
FEMA-Assistance to Firefighters Grant - ARRA
97.115
*
07/01/2010
06/30/2011
220,000
-
5,401
-
-
(5,401)
-
214,599
Emergency Management Assistance
10,000
10,000
-
10,000
-
-
10,000
-
Total FEMA Assistance to Firefighter Grants (Regular and ARRA) **
276,186
376,945
55,455
249,293
(74,000)
109,107
Passed Through Port Authority of NY & NJ
Port Authority Grant-Relocate Certain Parks
97.unknown
*
04/07/2014
*
2,000,000
-
1,973,724
-
105,180
-
1,868,544
131,456
Port Security Grant Program
Foam Tanker
97.056
2011-PU-K00254
08/06/2012
*
685,000
840,947
102,861
-
-
-
102,861
582,139
Port Security Grant Program FY15
97.056
25,000
-
-
25,000
-
-
25,000
-
Port Security Grant Program FY14
97.056
EMW-2014-PU-00567-S01
09/23/2014
*
25,000
25,000
-
18,575
-
6,425
18,575
Port Security Grant Program
97.056
EMW-2012-PU-00385
01/01/2012
12/31/2012
25,000
2,342
2,617
-
-
-
2,617
22,383
Port Security Grant Program
97.056
*
01/01/2011
12/31/2011
398,100
255,342
83,594
-
-
-
83,594
314,506
Total Port Security Grant Programs
1,098,631
2,187,796
25,000
123,755
-
2,089,041
Passed Through NJ Department of Law and Public Safety
Hurricane Sandy Public Assistance
97.036
066-1200-100-A92
07/01/2014
06/30/2015
110,055
110,055
-
-
-
-
-
-
UASI Training Reimbursement Fund
97.067
066-1200-100-975
01/01/2015
12/31/2015
129,970
-
-
129,970
129,970
-
-
129,970
UASI Training Reimbursement Fund
97.067
066-1200-100-975
01/01/2013
12/31/2013
53,851
54,015
53,851
-
53,851
-
-
53,851
UASI Training Reimbursement Fund
97.067
066-1200-100-975
01/01/2012
12/31/2012
45,109
45,109
-
45,109
-
-
45,109
FEMA-FY 2012 SAFER Grant
97.083
*
04/07/2013
04/06/2016
2,828,770
829,877
903,518
-
368,064
-
535,454
2,293,316
Total U.S. Department of Homeland Security
2,368,764
$
3,567,219
$
210,425
$
970,042
$
(74,000)
$
2,733,602
$
BLRA-EDA Grant
11.unknown
*
09/23/2010
05/17/2014
7,600,000
$
3,790,482
$
2,346,858
$
(2,346,858)
$
-
$
-
3,790,482
$
2,346,858
$
-
$
-
$
(2,346,858)
$
-
$
FY 2012 TIGER Discretionary Grant **
20.933
*
03/18/2013
12/01/2015
11,400,000
$
8,447,600
$
9,039,560
$
-
$
8,447,600
$
-
$
591,960
$
10,808,040
$
Pass through State of New Jersey Department of Transportation
New Jersey Transportation Trust Fund Authority Act:
Avenue C Paving
20.205
078-6300-480
10/01/2009
09/30/2010
1,293,000
-
243,891
-
11,710
(232,181)
-
1,060,819
Pedestrian Bridge
20.205
078-6300-480
07/21/2005
completion
550,000
-
514,028
-
-
-
514,028
35,972
Safe Routes to School Program
20.205
078-6300-480
*
*
300,000
-
287,812
-
-
-
287,812
12,188
Total Highway Planning and Construction Grants
8,447,600
10,085,291
-
8,459,310
(232,181)
1,393,800
Enhanced 911 Grant 2008
20.615
*
07/01/2008
06/30/2009
55,864
-
42,513
-
-
-
42,513
13,351
Total Enhanced 9-1-1 Grant Program
-
42,513
-
-
-
42,513
Total U.S. Department of Transportation
8,447,600
$
10,127,804
$
-
$
8,459,310
$
(232,181)
$
1,436,313
$
U.S. Department of Transportation
Total U.S. Department of Commerce
U.S. Department of Commerce
U.S. Department of Homeland Security
U.S. Department of Homeland Security (Continued)
See Accompanying Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance.
213
Schedule 1
Sheet 3 of 3
Federal
State
Funds
Prog. Income/
Funds
CFDA
Account
Grant Period
Program or
Funds
Available
Budget
Paid or
Canceled
Available
Cumulative
Federal Department and Program
Number
Number
From
To
Award Amount
Received
Dec. 31, 2014
Appropriations
Charged
Reappropriated
Dec. 31, 2015
Expenditures
CITY OF BAYONNE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2015
Passed through the County of Hudson
Aging Cluster
Area Plan Grant - Older American Act
93.044
Not Applicable
01/01/2015
12/31/2015
147,264
$
-
$
-
$
147,264
$
-
$
-
$
147,264
-
Area Plan Grant - Older American Act
93.044
Not Applicable
01/01/2014
12/31/2014
173,377
235,344
173,377
-
-
-
173,377
-
Area Plan Grant - Older American Act
93.044
Not Applicable
01/01/2013
12/31/2013
153,051
144,820
139,070
-
49,251
-
89,819
63,232
Home Delivered Meals
93.045
Not Applicable
01/01/2015
12/31/2015
10,000
-
-
10,000
-
-
10,000
-
Congregate Meals Program
93.053
Not Applicable
01/01/2015
12/31/2015
469,124
238,862
-
469,124
404,934
-
64,190
404,934
Congregate Meals Program
93.053
Not Applicable
01/01/2014
12/31/2014
466,143
-
73,804
-
73,804
-
-
466,143
Total Aging Cluster
619,026
386,251
626,388
527,989
-
484,650
619,026
$
386,251
$
626,388
$
527,989
$
-
$
484,650
$
Energy Efficiency Block Grant - ARRA
81.128
*
07/01/2009
06/30/2010
521,900
$
-
$
2,836
$
-
$
-
$
-
$
2,836
$
519,064
$
Total U.S. Department of Energy
-
$
2,836
$
-
$
-
$
-
$
2,836
$
U.S. Department of Housing and Urban Development
CDBG - Entitlement Grants Cluster**
14.218
B15MC340101
07/01/2015
06/30/2016
1,498,206
47,353
-
1,498,206
227,587
81,903
1,352,522
145,684
14.218
B14MC340101
07/01/2014
06/30/2015
1,526,479
957,659
1,793,681
-
413,769
(388,053)
991,859
534,620
14.218
B13MC340101
07/01/2013
06/30/2014
1,651,428
391,734
998,775
-
505,999
-
492,776
1,158,652
14.218
B12MC340101
07/01/2012
06/30/2013
1,492,343
-
673,436
-
21,952
(17,726)
633,758
858,585
14.218
B11MC340101
07/01/2011
06/30/2012
2,411,530
-
-
-
-
34,319
34,319
2,377,211
14.218
*
*
*
13,725,741
-
-
-
-
353,734
353,734
13,372,007
Total CDBG - Entitlement Grants Cluster**
1,396,746
3,465,892
1,498,206
1,169,307
64,177
3,858,968
14.231
S11MC340003
07/01/2011
06/30/2012
149,751
-
-
-
-
17,726
17,726
132,025
Total U.S. Department of Housing and Urban Development
1,396,746
$
3,465,892
$
1,498,206
$
1,169,307
$
81,903
$
3,876,694
$
GRAND TOTAL FEDERAL AWARDS
16,862,985
$
21,025,519
$
2,688,300
$
11,421,907
$
(2,947,574)
$
9,344,338
$
* Not Available.
**Denotes Major Program.
Community Development Block Grant
U.S. Department of Health and Human Services
Emergency Shelter Grant
U.S. Department of Energy
Total U.S. Department of Health and Human Services
Community Development Block Grant
Community Development Block Grant
Community Development Block Grant
Community Development Block Grant
Community Development Block Grant
See Accompanying Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance.
214
Schedule 2
Sheet 1 of 3
CITY OF BAYONNE
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER 31, 2015
Program
Funds
Funds
State Account
or Award
Funds
Available
Budget
Paid or
Cancellations/
Available
Cumulative
State Department and Program
or Grant Number
From
To
Amount
Received
Dec. 31, 2014
Appropriations
Charged
Transfers
Dec. 31, 2015
Expenditures
Uniform Fire Safety Code
*
01/01/2015
12/31/2015
104,326
104,326
-
-
-
-
-
104,326
Bureau of Housing Inspection
*
01/01/2015
12/31/2015
66,858
-
-
66,858
10,179
-
56,679
10,179
Bureau of Housing Inspection
*
01/01/2015
12/31/2015
44,968
44,968
-
-
-
-
-
44,968
Bureau of Housing Inspection
*
01/01/2014
12/31/2014
6,623
-
6,623
-
6,623
-
-
6,623
Bureau of Housing Inspection
*
01/01/2013
12/31/2013
50,770
-
50,056
-
50,056
-
-
50,770
149,294
$
56,679
$
66,858
$
66,858
$
-
$
56,679
$
Passed through County of Hudson
Municipal Alliance Grant
100-082-C001-004
07/01/2015
06/30/2016
85,390
$
-
$
-
$
85,390
$
(7,736)
$
-
$
93,126
$
(7,736)
$
Municipal Alliance Grant
100-082-C001-005
07/01/2014
06/30/2015
54,448
54,448
-
-
-
-
-
-
Municipal Alliance Grant
100-082-C001-004
01/01/2014
06/30/2014
30,642
-
30,642
-
-
-
30,642
-
Municipal Alliance Grant
100-082-C001-004
01/01/2013
12/31/2013
61,284
-
61,284
-
-
-
61,284
-
Municipal Alliance Grant
100-082-C001-004
01/01/2012
12/31/2012
63,526
-
63,526
-
-
-
63,526
-
Municipal Alliance Grant
100-082-C001-004
01/01/2011
12/31/2011
63,526
-
63,526
-
-
-
63,526
-
Municipal Alliance Grant
100-082-C001-004
01/01/2010
12/31/2010
63,526
-
63,526
-
-
-
63,526
-
Municipal Alliance Grant
100-082-C001-004
01/01/2009
12/31/2009
78,645
-
78,645
-
-
-
78,645
-
Municipal Alliance Grant
100-082-C001-004
01/01/2008
12/31/2008
78,645
-
78,645
-
-
-
78,645
-
Municipal Alliance Grant
100-082-C001-004
01/01/2007
12/31/2007
79,399
-
79,399
-
-
-
79,399
-
Municipal Alliance Grant
100-082-C001-004
01/01/2006
12/31/2006
71,925
-
71,925
-
-
-
71,925
-
Municipal Alliance Grant
100-082-C001-004
01/01/2004
12/31/2004
82,597
-
48,370
-
-
-
48,370
34,227
54,448
$
639,488
$
85,390
$
(7,736)
$
-
$
732,614
$
(19,317)
Drunk Driving Enforcement Fund
100-78-64000
01/01/2015
12/31/2015
5,616
$
5,616
$
-
$
-
$
-
$
-
$
-
-
Drunk Driving Enforcement Fund
100-78-64000
01/01/2014
12/31/2014
5,760
-
-
5,760
5,126
-
634
5,126
Drunk Driving Enforcement Fund
100-78-64000
01/01/2013
12/31/2013
4,143
-
1,417
-
1,417
-
-
4,143
Total Drunk Driving Enforcement Fund
5,616
1,417
5,760
6,543
-
634
Body Armor Replacement Fund
066-1020-718-001
01/01/2015
12/31/2015
30,494
15,740
-
30,494
-
-
30,494
(30,494)
Body Armor Replacement Fund
066-1020-718-001
01/01/2014
12/31/2014
14,755
-
-
-
-
-
-
-
Body Armor Replacement Fund
066-1020-718-001
01/01/2013
12/31/2013
20,365
-
20,365
-
6,137
-
14,228
6,137
Body Armor Replacement Fund
066-1020-718-001
01/01/2012
12/31/2012
16,262
-
16,262
-
16,262
-
-
16,262
Body Armor Replacement Fund
066-1020-718-001
01/01/2011
12/31/2011
16,008
-
16,008
-
16,008
-
-
16,008
Body Armor Replacement Fund
066-1020-718-001
01/01/2010
12/31/2010
16,033
-
1,107
-
1,107
-
-
16,033
Total Body Armor Replacement Fund
15,740
53,742
30,494
39,514
-
44,722
Grant Period
Department of Law and Public Safety
Department of Community Affairs
Total Department of Community Affairs
Governor's Council on Alcoholism and Drug Abuse
Total Governor's Council on Alcoholism and Drug Abuse
See Accompanying Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance.
215
Schedule 2
Sheet 2 of 3
CITY OF BAYONNE
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER 31, 2015
Program
Funds
Funds
State Account
or Award
Funds
Available
Budget
Paid or
Cancellations/
Available
Cumulative
State Department and Program
or Grant Number
From
To
Amount
Received
Dec. 31, 2014
Appropriations
Charged
Transfers
Dec. 31, 2015
Expenditures
Grant Period
Pedestrian Safety Enforcment and Education
066-1160-100-112
10/01/2015
09/30/2016
9,400
$
-
$
-
$
9,400
$
-
$
-
$
9,400
-
Pedestrian Safety Enforcment and Education
066-1160-100-112
10/01/2014
09/30/2015
9,400
-
-
-
-
-
-
-
Pedestrian Safety Enforcment and Education
066-1160-100-112
10/01/2013
09/30/2014
9,377
-
9,377
-
-
-
9,377
-
Pedestrian Safety Enforcment and Education
066-1160-100-112
10/01/2012
09/30/2013
7,500
-
6,500
-
-
-
6,500
1,000
Pedestrian Safety Enforcment and Education
066-1160-100-112
10/01/2011
09/30/2012
6,000
-
6,000
-
-
-
6,000
-
Pedestrian Safety Enforcment and Education
066-1160-100-112
10/01/2010
09/30/2011
9,000
-
9,000
-
-
-
9,000
-
Pedestrian Safety Enforcment and Education
066-1160-100-112
10/01/2009
09/30/2010
7,698
-
7,698
-
-
-
7,698
-
Pedestrian Safety Enforcment and Education
066-1160-100-112
10/01/2006
09/30/2007
16,868
-
11,304
-
-
-
11,304
5,564
Pedestrian Safety Enforcment and Education
066-1160-100-112
10/01/2007
09/30/2008
10,570
-
10,570
-
-
-
10,570
-
Pedestrian Safety Enforcment and Education
066-1160-100-112
10/01/2008
09/30/2009
12,477
-
12,477
-
2,060
-
10,417
2,060
Total Pedestrian Safety Enforcment and Education
-
72,926
9,400
2,060
-
80,266
21,356
128,085
45,654
48,117
-
125,622
21,356
$
128,085
$
45,654
$
48,117
$
-
$
125,622
$
Library Cultural Grant
*
*
*
8,750
$
-
$
8,750
$
-
$
-
$
(8,750)
$
-
$
8,750
-
$
8,750
$
-
$
-
$
(8,750)
$
-
$
Clean Communities Act
042-4900-765-004
07/01/2014
06/30/2015
106,247
$
106,247
$
-
$
-
$
-
$
-
$
-
$
-
$
Clean Communities Act
042-4900-765-004
07/01/2013
06/30/2014
87,407
-
87,407
-
81,665
-
5,742
87,407
Clean Communities Act
042-4900-765-004
07/01/2012
06/30/2013
93,029
-
93,029
-
93,029
-
-
93,029
Clean Communities Act
042-4900-765-004
07/01/2011
06/30/2012
79,236
-
21,562
-
21,562
-
-
79,236
Total Clean Communities Act
106,247
201,998
-
196,256
-
5,742
106,247
201,998
-
196,256
-
5,742
Green Acres Grant
*
01/01/2008
12/31/2008
500,000
-
500,000
-
-
-
500,000
-
Green Communities Forestry Grant
01/01/2015
12/31/2015
3,000
-
-
-
(3,000)
-
3,000
-
440 Corridor Redevelopment Grant
*
07/01/2007
06/30/2008
374,484
-
318,552
-
-
(318,552)
-
55,932
106,247
$
1,020,550
$
-
$
193,256
$
(318,552)
$
508,742
$
Per Capita Library Aid
*
07/01/2015
06/30/2016
22,048
$
22,048
$
-
$
-
$
-
$
-
$
-
$
-
$
Faith Based Grant
*
07/01/2005
06/30/2006
8,750
-
-
-
-
-
-
8,750
Total Department of State
22,048
$
-
$
-
$
-
$
-
$
-
$
2015 Municipal Aid - Various Streets
15-480-078-6320
05/12/2015
12/31/2015
327,592
$
-
$
-
$
327,592
$
327,592
$
-
$
-
$
327,592
Police Overtime Motor Vehicles
*
01/01/2015
12/31/2015
139,715
141,375
-
139,715
139,715
-
-
139,715
Safe Streets to Transit
*
*
*
205,000
-
185,000
-
-
-
185,000
20,000
Department of Environmental Protection
Total Department of Environmental Protection
Subtotal Department of Environmental Protection
Department of State
Department of Transportation
Total Department of Law and Public Safety
Subtotal Department of Law and Public Safety
New Jersey State Library
Total New Jersey State Library Grants
Department of Law and Public Safety (continued)
See Accompanying Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance.
216
Schedule 2
Sheet 3 of 3
CITY OF BAYONNE
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER 31, 2015
Program
Funds
Funds
State Account
or Award
Funds
Available
Budget
Paid or
Cancellations/
Available
Cumulative
State Department and Program
or Grant Number
From
To
Amount
Received
Dec. 31, 2014
Appropriations
Charged
Transfers
Dec. 31, 2015
Expenditures
Grant Period
141,375
$
185,000
$
467,307
$
467,307
$
-
$
185,000
$
Trust Fund Grants
Recycling Tonnage Grant
042-4900-752-001
07/01/2015
06/30/2016
95,033
$
-
$
-
$
95,033
$
95,033
$
-
$
-
$
95,033
Total Trust Fund Grants
-
$
-
$
95,033
$
95,033
$
-
$
-
$
Capital Fund Grants
Green Acres Grant **
01/01/2015
12/31/2015
500,000
$
-
$
-
$
463,397
$
463,397
$
-
$
-
$
500,000
Total Capital Fund Grants
-
$
-
$
463,397
$
463,397
$
-
$
-
$
GRAND TOTAL STATE FINANCIAL ASSISTANCE
494,768
$
2,038,552
$
1,223,639
$
1,326,232
$
(327,302)
$
1,608,657
$
* Not Available.
**Denotes Major Program.
Department of Transportation
Total Department of Transportation
Department of Environmental Protection
See Accompanying Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance.
217
Schedule 3
Sheet 1 of 2
Program
Funds
Funds
Account
or Award
Funds
Available
Budget
Paid or
Cancellations/
Available
Cumulative
Department and Program
Number
From
To
Amount
Received
Dec. 31, 2014
Appropriations
Charged
Transfers
Dec. 31, 2015
Expenditures
County of Hudson Grants:
County of Hudson Open Space Trust Grants:
Open Space Trust Fund
*
01/01/2005
12/31/2006
1,200,000
$
41,074
$
-
$
-
$
-
$
-
$
-
$
1,200,000
$
Open Space Trust Fund
01/01/2015
12/31/2015
625,000
-
-
237,456
237,456
-
-
625,000
Open Space Trust Fund - Museum
*
01/01/2009
09/30/2010
340,000
44,417
70,998
-
-
-
70,998
269,002
Total County of Hudson Open Space Trust Fund
85,491
70,998
237,456
237,456
-
70,998
County Law Enforcement Trust Account
Police Forfeiture Funds
*
07/01/2011
06/30/2012
205,759
-
37,849
-
38
-
37,811
167,948
Drug Enforcement Agency
*
*
*
163,031
-
163,031
-
-
-
163,031
-
Drug Enforcement Agency
*
*
*
42,119
-
42,119
-
-
-
42,119
-
Reimbursement Police Department
*
*
*
67,383
-
67,383
-
-
(67,383)
-
67,383
Reimbursement - City Wide Communications
*
01/01/2014
12/31/2014
8,540
-
-
-
-
-
-
8,540
Total County Law Enforcement Trust Account
-
310,382
-
38
(67,383)
242,961
Total County of Hudson Grants
85,491
$
381,380
$
237,456
$
237,494
$
(67,383)
$
313,959
$
Private Contributions and Donations:
Dr. Pepper Snapple Group - KaBOOM!
Let's Play Construction Grant
*
07/1/2012
02/21/2013
9,000
$
-
$
9,000
$
-
$
-
$
(9,000)
$
-
$
-
$
Pet Smart Charities
*
09/30/2012
10/30/2013
16,500
-
7,223
-
-
-
7,223
9,277
Contribution for Public Waterfront Access
*
07/01/2010
*
250,000
-
250,000
-
-
(250,000)
-
-
ESL Grant Cruise Foundation
*
*
*
5,000
5,000
-
5,000
-
-
5,000
-
George Foreman Grant
*
07/01/2010
06/30/2011
2,498
-
28
-
-
-
28
2,470
Total Private Contributions and Donations
5,000
$
266,251
$
5,000
$
-
$
(259,000)
$
12,251
$
Grant Period
CITY OF BAYONNE
SCHEDULE OF EXPENDITURES OF OTHER FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER 31, 2015
218
Schedule 3
Sheet 2 of 2
Program
Funds
Funds
Account
or Award
Funds
Available
Budget
Paid or
Cancellations/
Available
Cumulative
Department and Program
Number
From
To
Amount
Received
Dec. 31, 2014
Appropriations
Charged
Transfers
Dec. 31, 2015
Expenditures
Grant Period
CITY OF BAYONNE
SCHEDULE OF EXPENDITURES OF OTHER FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER 31, 2015
Other Reimbursements:
Passed through the Bayonne Housing Authority:
Police Grant
*
01/01/2015
12/31/2015
260,085
$
-
$
-
$
260,085
$
260,085
$
-
$
-
$
260,085
Police Grant
*
01/01/2014
12/31/2014
267,089
-
-
-
-
-
-
-
Police Grant
*
01/01/2013
12/31/2013
458,625
-
560
-
-
-
560
458,065
Passed through the County of Union:
UASI Training Reimbursement Fund
*
04/01/2014
05/31/2014
27,464
-
-
-
-
-
-
Passed through the Bayonne Parking Utility
Citywide Communication System contract
*
*
*
6,028
6,028
-
6,028
-
-
6,028
-
Total Other Reimbursements
6,028
$
560
$
266,113
$
260,085
$
-
$
6,588
$
GRAND TOTAL OTHER FINANCIAL ASSISTANCE
96,519
$
648,191
$
508,569
$
497,579
$
(326,383)
$
332,798
$
*
Not Available
219
CITY OF BAYONNE
NOTES TO SCHEDULES OF EXPENDITURES OF
FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE A. GENERAL
The City of Bayonne (the “City”), received and continues to participate in numerous federal award and
state financial assistance programs, in the form of grant cost reimbursements and revenue sharing
entitlements. The City is the reporting entity for the grant programs received. Administration of the
grant programs is performed by the various departments of the City.
Reporting
The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance present
the activity of all federal and state grant programs of the City. All federal awards received directly from
federal agencies or passed through other government agencies are included on the Schedule of
Expenditures of Federal Awards. All state awards received directly from state agencies or passed
through other government agencies are included on the Schedule of expenditures of State Financial
Assistance.
The information in these Schedules are presented in accordance with the requirements of Title 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and audit
Requirements for Federal Awards (Uniform Guidance) and New Jersey OMB Circular Letter 15-08
Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Federal awards
provided to sub-recipients are treated as expenditures when paid. The City is not utilizing the 10-percent
de minimis indirect cost rate as allowed under the Uniform Guidance
NOTE B. BASIS OF ACCOUNTING
The accounting policies of the City conform to the accounting principles and practices prescribed by the
Division of Local Government Services, Department of Community Affairs, State of New Jersey (the
“Division”). Such principles and practices are designed primarily for determining compliance with legal
provisions and budgetary restrictions and as a means of reporting on the stewardship of public officials
with respect to public funds. Under this method of accounting, the City accounts for federal awards and
state financial assistance through the following accounting practices which differ from those required by
accounting principles generally accepted in the United States of America.
The City, in accordance with the Division’s directives, fully realizes revenues and charges
appropriations when grants are adopted by the governing body in the budget of its Current Fund. The
revenues are charged and the receivable accounted for in the State and Federal grants fund.
Appropriations are charged and the amount allotted for spending is accounted for as an appropriated
reserve. Programs within the General Capital Fund and various Trust Funds (other than the State and
220
CITY OF BAYONNE
NOTES TO SCHEDULES OF EXPENDITURES OF
FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE B. BASIS OF ACCOUNTING (continued)
Federal Grants Fund) are accounted for within the equivalent revenue accounts for those respective
funds. Expenditures are measured from payments charged directly to specific grant programs.
Local Contributions – Local matching contributions are required by certain federal and state grants.
The amount of percentage of matching contributions varies with each program. Local matching
contributions are raised in the Current Fund budget.
NOTE C. REPORTING ENTITY
The City, for purposes of the Schedule of Expenditures of Federal Awards and State Financial
Assistance, includes all the funds of the primary government as defined by criteria established by the
Governmental Accounting Standards Board Statement 14, The Financial Reporting Entity.
The City administers certain federal and state award programs through subrecipients. Those
subrecipients are not considered part of the City’s reporting entity.
NOTE D. PASS-THROUGH AWARDS
The City receives certain federal awards from pass-through awards of the state. The amounts received
are commingled by the state with other funds and cannot be separately identified.
NOTE E. CONTINGENCIES
Entitlement to the funds is generally conditional upon compliance with terms and conditions of the grant
agreements and applicable laws and regulations. Federal and state grants, entitlements and cost
reimbursements are subject to financial and compliance audits by grantors.
NOTE F. MONITORING OF SUBRECIPIENTS
Under the requirements of the Single Audit Act and State regulations, if the City, as a primary recipient,
receives federal and state financial assistance and provides $750,000 or more of such assistance to a
subrecipient in a fiscal year, the City is responsible for determining that the expenditures of federal and
state monies passed-through to subrecipients are utilized in accordance with applicable laws and
regulations.
221
Financial Statements
Type of auditors report issued:
Internal Control over Financial Reporting:
2015-003
1) Material weakness(es) identified?
Yes
2015-007
No
2015-001
2) Significant deficiency(ies) identified?
Yes
2015-002
No
Noncompliance material to basic financial
statements noted?
Yes
2015-002
No
Federal Awards
Type of auditor's report on compliance for major programs:
Qualified for:
CDBG Entitlement Grants Cluster
Emergency Shelter Grant
Unmodified for all other major Federal program
Internal Control over Major Programs:
2015-003
through
1) Material weakness(es) identified?
Yes
2015-008
No
2) Significant deficiency(ies) identified?
Yes
2015-001
No
2015-003
Any audit findings disclosed that are required to be reported
through
in accordance with 2 CFR 200.516(a)?
Yes
2015-008
No
Identification of major Federal Programs:
20.933
- TIGER Grant
14.218
- CDBG Entitlement Grants Cluster
Dollar threshold used to distinguish between Type A and Type B Programs:
Auditee qualified as low-risk auditee?
Yes
No
750,000
$
Name of Federal Program or Cluster
CFDA Number
CITY OF BAYONNE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2015
Section I - Summary of Auditor's Results
Adverse-according to GAAP
Unmodified-as prescribed by NJ DLGS
222
CITY OF BAYONNE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2015
Section I - Summary of Auditor's Results
State Financial Assistance
Type of auditor's report on compliance for major programs:
Internal Control over Compliance:
1) Material weakness(es) identified?
Yes
No
2) Significant deficiency(ies) identified?
Yes
2015-001
No
Any audit findings disclosed that are required to be reported
in accordance with NJ OMB 15-08, as amended?
Yes
No
Identification of major State programs
15-480-078-6320
- 2015 Municipal Aid - Various Streets
Unavailable
- Green Acres Grant
Dollar threshold used to distinguish between Type A and Type B Programs:
750,000
$
Name of State Program
(continued)
State Grant Number
Unmodified-as prescribed by NJ DLGS
Adverse-according to GAAP
223
CITY OF BAYONNE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2015
Section II - Schedule of Financial Statement Findings
(This section identifies the significant deficiencies, material weaknesses, fraud, noncompliance with
provisions of laws, regulations, contracts and grant agreements, and abuse related to the financial
statements for which Government Auditing Standards requires reporting.)
Finding 2015-001
Significant Deficiency in Internal Control over Financial Reporting
Criteria and Condition:
The City’s Schedule of Federal and State Grants Receivable (Exhibit A-22), Schedule of Reserves for
Federal and State Grants - Appropriated (Exhibit A-23), and Schedule of Capital Grants Receivable
(Exhibit C-5) contain grants with outstanding receivable and reserve balances which have been inactive
for several years.
Context:
A review of Federal and State grant receivables and appropriated reserves indicates significant grant
balances exist which have been inactive in excess of five years.
Cause:
The City is not regularly analyzing old grant receivable and reserve balances for propriety.
Effect:
The City has aged receivable and reserve balances in the Federal and State Grant Fund and the General
Capital Fund. The City’s aging schedule for grants receivable is as follows:
Years
Receivable for
Receivable for
Outstanding
Grant year
Current Fund
Capital Fund
1 or less
2015
398,047
$
1,125,000
$
2
2014
3,385,360
-
3
2013
245,129
100,800
4
2012
322,554
-
5
2011
195,583
-
6 - 9
2006 -2010
1,239,022
767,000
10 and more
Prior to 2006
250,000
351,347
6,035,695
$
2,344,147
$
224
CITY OF BAYONNE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2015
Section II - Schedule of Financial Statement Findings
Finding 2015-001 (continued)
Recommendation:
Although a substantial amount of receivables and reserves were cancelled during 2015, the City should
continue to investigate grants with dormant receivable and reserve balances for proper follow-up or
disposition, including: consideration of the collectability of the grants, whether receivable and reserve
balances exist as a result of charges to incorrect grant years and whether aged reserves are expendable or
must be returned to grantor agencies. Going forward, all grants should be continuously monitored for
inactivity and aging.
225
CITY OF BAYONNE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2015
Section II - Schedule of Financial Statement Findings
Finding 2015-002
Significant Deficiency in Internal control
Noncompliance to Basic Financial Statements
Criteria and Condition:
The City did not obtain surety bond coverage for the Court Administrator, in accordance with the
requirements established by N.J.A.C. 5:30-8.4. Surety bond coverage for the Tax Collector did not meet
the minimum required by N.J.A.C. 5:30-8.3 and as recommended by N.J.A.C. 5:30-8.2 for the Chief
Financial Officer.
Context:
A review of the surety bond coverage indicates that the City does not have coverage for the Court
Administrator. The review also indicated that there was insufficient coverage of the Tax collector and
Chief Financial Officer.
Cause:
The City did not obtain any surety bond coverage for the Court Administrator. The City is not regularly
reviewing its projected tax levy and revenues to obtain the minimum surety bond coverage for the Tax
Collector and Chief Financial Officer.
Effect:
The City is not in compliance with N.J.A.C. 5:30-8.2 through N.J.A.C. 5:30-8.4 with regards to surety
bond coverage.
Recommendation:
The City should obtain surety bond coverage for the Court Administrator as required by N.J.A.C. 5:30-
8.4. The City should annually review its projected tax levy and revenues and obtain the minimum surety
bond coverage required under N.J.A.C. 5:30-8.3 and as recommended by N.J.A.C. 5:30-8.2.
226
CITY OF BAYONNE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2015
Section III- Schedule of Federal Awards and State Financial Assistance -
Findings and Questioned Costs
(This section identifies audit findings required to be reported by the 2 CFR 200.516(a) and New Jersey
OMB Circular 15-08.)
Finding 2015-003:
Material Weakness in Internal Control Over Major Programs and Over Financial Reporting- Allowable
Costs
-
U.S. Department of Housing and Urban Development
Community Development Block Grant – CFDA No. 14.218
Emergency Shelter Grant – CFDA No. 14.231
Condition:
The City was able to provide adequate and appropriate accounting records as part
of a standard financial accounting system, however, we could not verify or
reconcile information in IDIS with the City’s internal financial management
system. This finding is repeated from the prior year.
Criteria:
In accordance with 25 CFR 85. 20(b)(2), Accounting records, pursuant to 24 CFR
570.502(a)(4), the City and its subrecipients must maintain records which
adequately identify the source and application of funds provided for financially-
assisted activities. These records must contain information pertaining to grant or
subgrant awards and authorizations obligations, unobligated balances, assets,
liabilities, outlays or expenditures and income.
Cause:
The City’s Community Development Office operates its own financial
management system which has no connection with the City’s financial and
accounting system.
Effect:
Lack of adequate and accurate accounting records can lead to inconsistencies in
the City’s internal control over its financial reporting and management.
Recommendation:
The City should consider integrating the Community Development department
into their financial accounting system.
227
CITY OF BAYONNE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2015
Section III- Schedule of Federal Awards and State Financial Assistance -
Findings and Questioned Costs
Finding 2015-003: (continued)
Views of Responsible Officials of the City:
The City has hired a new employee who will be responsible for reconciling the Community
Development accounting system with IDIS and the City’s financial management system. The City is
also changing its financial management system as of April 1, 2017.
228
CITY OF BAYONNE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2015
Section III- Schedule of Federal Awards and State Financial Assistance -
Findings and Questioned Costs
Finding 2015-004:
Material Weakness in Internal Control Over Compliance - Subrecipient Monitoring
-
U.S. Department of Housing and Urban Development
Community Development Block Grant – CFDA No. 14.218
Condition:
The City does not have a formal procedure in place to track Subpart F of the
Uniform Guidance audit reports for its subrecipients. Therefore, the City did not
properly monitor and was unable to provide documentation on subrecipient
monitoring. This finding is repeated from the prior year.
Criteria:
Pursuant to Subpart F of the Uniform Guidance, the City is required to maintain
and track subpart F of the Uniform Guidance audits of its subrecipients.
Cause:
The City normally checks subrecipient audit reports, which it receives with
CDBG applications. However, it does not perform the necessary monitoring to
ensure that subrecipients submit subpart F of the Uniform Guidance reports, if
required, in accordance with the terms of the subrecipient agreements.
Effect:
The City cannot determine if subrecipients were required to have a subpart F of
the Uniform Guidance audit or provide assurance that subrecipients expended
funds in accordance with their agreement with the subrecipient
Recommendation: The City should maintain a tracking system of all its subrecipients, in order to
ensure that it obtains copies of their subpart F of the Uniform Guidance audit
reports if required. In addition, the City must ensure that its subrecipients address
any finding(s) in their audit report that may affect the program administered by
the Office of Commuinty Development. The City should establish formal
procedures for monitoring CDBG subrecipients for compliance with the terms of
the grant agreement.
Views of Responsible Officials of the City:
Before any 2016 subrecipient agreements are authorized, staff will review agencies to ascertain subpart
F of the Uniform Guidance status and any findings in the reports.
229
CITY OF BAYONNE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2015
Section III- Schedule of Federal Awards and State Financial Assistance -
Findings and Questioned Costs
Finding 2015-005:
Material Weakness in Internal Control Over Compliance – Financial Reporting
-
U.S. Department of Housing and Urban Development
Community Development Block Grant – CFDA No. 14.218
Condition:
The City did not submit quarterly reports for Fiscal Year 2012, 2013, 2014 or
2015. This finding is repeated from the prior year.
Criteria:
In accordance with 24 CFR 85.41(c), Financial Reporting, pursuant to 24 CFR
570.502(a)(15), HUD recipients and subrecipients shall submit an SF 425, Federal
Financial Report, on a quarterly basis, reflecting the federal funds received,
disbursed, ending balance(s) by program and related program income received
and disbursed.
Cause:
The City did not maintain internal controls to ensure timely and accurate
submission of quarterly reports as required by HUD regulations.
Effect:
The City is not in compliance with the CDBG regulations requiring submission of
the Federal Financial Reports.
Recommendation:
The City must submit, to HUD, a copy of the policies and procedures put into
place to ensure timely and accurate submission of the SF 425 form and submit
copies of the missing quarterly reports for FY 2012, FY 2013, FY14 and FY
2015.
Views of Responsible Officials of the City:
The quarterly reports are being prepared and are being submitted to HUD.
230
CITY OF BAYONNE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2015
Section III- Schedule of Federal Awards and State Financial Assistance -
Findings and Questioned Costs
Finding 2015-006:
Material Weakness in Internal Control Over Compliance – Reporting
-
U.S. Department of Housing and Urban Development
Community Development Block Grant – CFDA No. 14.218
Condition:
The City did not have internal accounting information available to ensure that the
information in IDIS and Comprehensive Annual Performance and Evaluation
Report (CAPER) was accurate and complete. This finding is repeated from the
prior year.
Criteria:
In accordance with 24 CFR 85.20(b)(2), Accounting records, pursuant to 24 CFR
570.502(a)(4) and 24 CFR 570.507, the City is required to maintain records which
adequately identify the source and application of funds provided for financially-
assisted activities. These records must contain information pertaining to grant or
subgrant awards and authorizations obligations, unobligated balances, assets,
liabilities, outlays or expenditures and income.
Cause:
There is no connection between the City’s financial and accounting system and
the Community Development Department’s system and the City does not review
documentation for accuracy or ensure that the information is entered in
Community Development’s system.
Effect:
Lack of adequate and accurate accounting records can lead to inconsistencies in
the City’s internal control over its financial reporting and management.
Recommendation:
The City should adhere to its CDBG policies and procedures manual, which
references financial management procedures.
Views of Responsible Officials of the City:
Staff is now following the CDBG policies and procedures manual.
231
CITY OF BAYONNE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2015
Section III- Schedule of Federal Awards and State Financial Assistance -
Findings and Questioned Costs
Finding 2015-007:
Material Weakness in Internal Control Over Major Programs and Over Financial Reporting – Cash
Management
-
U.S. Department of Housing and Urban Development
Community Development Block Grant – CFDA No. 14.218
Condition:
The City could not provide information in order to determine if payments are
being made within three business days of the deposit of grant funds. This finding
is repeated from the prior year.
Criteria:
24 CFR 85.20(b)(7) pursuant to 24 CFR 570.502(a)(5), requires that the City have
procedures for minimizing the time elapsing between the transfer of funds from
the U.S. Treasury and disbursement of grantees and subgrantees must be followed
whenever advance payment procedures are used. The City must establish
reasonable procedures to ensure the receipt of reports on subgrantees’ cash
balances and cash disbursements in sufficient time to enable them to prepare
complete and accurate cash transaction reports to the awarding agency.
Cause:
The City does not have a procedure in place to minimize the time elapsing
between the transfer of funds and their disbursement.
Effect:
The City is unable to demonstrate that the time elapsing between the transfer of
CDBG funds and their disbursement have been timely.
Recommendation:
The City must maintain procedures to minimize the time elapsing between the
transfer of CDBG funds and their disbursement.
Views of Responsible Officials of the City:
The time elapsed issues will be carefully monitored by staff to ensure program compliance with the
three day disbursement rule.
232
CITY OF BAYONNE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2015
Section III- Schedule of Federal Awards and State Financial Assistance -
Findings and Questioned Costs
Finding 2015-008:
Material Weakness in Internal Control Over Compliance – Special Tests and Provisions
-
U.S. Department of Housing and Urban Development
Community Development Block Grant – CFDA No. 14.218
-
Department of Transportation Municipal Aid – 15-480-078-6320-AL5-6010
-
Department of Transportation Urban Aid – 15-480-078-6320-AL2-6010
Condition:
The City failed to provide proof of on-site interviews HUD-11 for the interviews
conducted for the Davis Bacon Inspection.
Criteria:
In accordance with HUD handbook 1344.1 Rev 2, Chapter 5, Section 5-8 ( c)
Subsection (3) (4), inspector shall ensure that all of the information requested on
the HUD-11 interview form is complete and accurately reflects the project
identification, date of interview and employee statements.
Cause:
The City did not do on-site visits and therefore could not provide interview
documentation.
Effect:
Failure to conduct on-site interviews will make it unknown if workers are paid the
correct salary.
Recommendation:
The City must provide on-site inspection documentation for all future on-site
inspections.
Views of Responsible Officials of the City:
An employee of the City will be assigned the responsibility of conducting the required interviews.
233
CITY OF BAYONNE
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
AND QUESTIONED COSTS AS PREPARED BY MANAGEMENT
FOR THE YEAR ENDED DECEMBER 31, 2015
Status of Prior Year Findings
(This section identifies the status of prior-year audit findings related to the basic financial statements
and federal and state awards that are required to be reported in accordance with Chapter 4 of
Government Auditing Standards, 2 CFR 200.516(a) and New Jersey OMB Circular 15-08.)
Finding FS2014-001
Financial Statement Finding
Condition:
The City’s Schedule of Federal and State Grants Receivable (Exhibit A-22) and
Schedule of Reserves for Federal and State Grants - Appropriated (Exhibit A-23)
contain grants with outstanding receivable and reserve balances which have been
inactive for several years.
Current Year Status: This finding is repeated in the current year as Finding 2015-001.
Finding 2014-002
Federal Awards and State Financial Assistance Finding
Condition:
The City was able to provide adequate and appropriate accounting records as part
of a standard financial accounting system, however, we could not verify or
reconcile information in IDIS with the City’s internal financial management
system.
Current Year Status: Law Enforcement Officials as part of an ongoing investigation have taken
possession of the 2012 and 2013 financial records maintained by the Community
Development Department and still have not returned them, therefore the finding
still exists. The City did hire a new employee to be responsible for integrating
Community Development into their financial accounting system during 2015,
however, this finding remains in the current year as Finding 2015-003.
234
CITY OF BAYONNE
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
AND QUESTIONED COSTS AS PREPARED BY MANAGEMENT
FOR THE YEAR ENDED DECEMBER 31, 2015
Status of Prior Year Findings
Finding 2014-003
Federal Awards and State Financial Assistance Finding
Condition:
The City did not disburse CDBG program income before requests were made for
CDBG funds in the United States Treasury Account. The City did not accurately
account for program income generated from the use of Community Development
Block Grant funds. In addition, loan repayments are not properly monitored or
recorded by the City and the program income generated by the loan program is
not recycled into the program.
Current Year Status: This finding has been corrected.
Finding 2014-004
Federal Awards and State Financial Assistance Finding
Condition:
The City does not have a formal procedure in place to track A-133 audit reports
for its subrecipients. Therefore, the City did not properly monitor and was unable
to provide documentation on subrecipient monitoring.
Current Year Status: This finding remains in the current year as Finding 2015-004.
Finding 2014-005
Federal Awards and State Financial Assistance Finding
Condition:
The City did not submit quarterly reports for Fiscal Year 2012, 2013, or 2014.
Current Year Status: This finding remains in the current year as Finding 2015-005.
Finding 2014-006
Federal Awards and State Financial Assistance Finding
Condition:
The City did not have adequate checks and balances and was deficient in internal
control over financial reporting.
Current Year Status: This finding has been corrected.
235
CITY OF BAYONNE
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
AND QUESTIONED COSTS AS PREPARED BY MANAGEMENT
FOR THE YEAR ENDED DECEMBER 31, 2015
Status of Prior Year Findings
Finding 2014-007
Federal Awards and State Financial Assistance Finding
Condition:
The City did not have internal accounting information available to ensure that the
information in IDIS and Comprehensive Annual Performance and Evaluation
Report (CAPER) was accurate and complete.
Current Year Status: This finding remains in the current year as Finding 2015-006.
.
Finding 2014-008
Federal Awards and State Financial Assistance Finding
Condition:
Documentation for personnel costs did not include timesheets in accordance with
2 CFR Part 225, or semi-annual certifications.
Current Year Status: This finding has been corrected.
Finding 2014-009
Federal Awards and State Financial Assistance Finding
Condition:
The City did not file semi-annual Davis-Bacon HUD 4710 report in a timely
manner.
Current Year Status: This finding has been corrected.
Finding 2014-010
Federal Awards and State Financial Assistance Finding
Condition:
The City could not provide information in order to determine if payments are
being made within three business days of the deposit of grant funds.
Current Year Status: This finding remains in the current year as Finding 2015-007.
236
CITY OF BAYONNE
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
AND QUESTIONED COSTS AS PREPARED BY MANAGEMENT
FOR THE YEAR ENDED DECEMBER 31, 2015
Status of Prior Year Findings
Finding 2012-003
Federal Awards and State Financial Assistance Finding
Condition:
The City could not provide supporting documentation for expenditures incurred
for the Community Development Block Grant. In addition, we could not
determine whether the City is in compliance with the requirements related to
rehabilitation projects. This caused questioned costs for Community Development
Block Grant in the amount of $2,397,773 and Emergency Shelter Grant in the
amount of $13,453.
Current Year Status: The Department of Housing and Urban Development (HUD) has not issued a
management decision or cleared/closed the 2012 program year. This finding will
remain until all prior year audits are certified with the Federal Audit
Clearinghouse and HUD issues their final management decision.
237
STATISTICAL SECTION: UNAUDITED
Table 1
Contingent,
Deferred
Sanitation,
Public Works,
Charges and
Shared
Federal,
Judgments /
Reserve for
Year
General
Health &
Public
Parks and
Statutory
Service
State and
Other Special
Capital
Debt
Uncollected
Ended
Government
Welfare
Safety
Recreation
Expenditures
Agreements
County Grants
Items (1)
Improvements
Service
Taxes
Total
Dec. 31,
2015
30,183,910
$
6,502,239
$
43,964,770
$
9,143,240
$
14,202,145
$
120,000
$
2,471,953
$
60,202
$
-
$
23,162,030
$
2,600,000
$
132,410,489
$
2014
31,461,931
6,738,300
44,263,000
8,992,500
13,719,650
120,000
20,197,439
65,860
200,000
23,071,030
2,720,000
151,549,710
2013
29,406,517
6,324,000
42,966,000
8,032,500
15,769,000
131,799
5,100,277
675,834
390,000
21,901,530
3,000,000
133,697,457
2012
32,207,148
6,370,300
41,458,000
7,444,500
12,902,800
208,201
3,554,199
1,990,800
1,615,000
22,641,241
800,000
131,192,189
2011
*
14,294,926
3,069,000
20,210,500
3,846,945
942,206
242,000
1,997,889
41,888
-
14,782,963
727,000
60,155,317
June 30,
2011
31,055,407
6,163,300
37,498,000
7,917,000
14,572,368
4,225,400
5,674,950
190,455
25,000
20,578,621
840,000
128,740,501
2010
29,299,198
6,382,300
37,689,000
6,861,500
12,369,902
5,425,400
10,818,105
262,056
15,000
25,339,491
870,000
135,331,952
2009
33,497,668
6,117,300
37,108,000
7,421,000
7,072,621
5,550,400
3,313,235
31,275
10,000
21,737,186
470,000
122,328,685
2008
41,121,112
6,156,000
37,668,300
7,116,000
1,980,591
5,425,400
3,741,016
89,870
9,000
17,750,318
450,000
121,507,607
2007
56,050,504
6,360,300
35,758,000
7,777,500
1,673,000
5,425,400
6,147,430
62,618
270,000
16,629,736
450,000
136,604,488
(1)
This column represents judgments budgeted in the years ended June 30, 2002 and 2003 and Other Special Items in the years ended June 30, 2004 to present.
*
The year ended December 31, 2011 is a six month "transition year".
**
Refers to Current Fund Appropriation Budget after Modifications.
CITY OF BAYONNE
TEN-YEAR HISTORY OF GOVERNMENTAL EXPENDITURES**
STATISTICAL SECTION (UNAUDITED)
238
Table 2
Shared
Federal
Surplus
Non-Budet
Year
Current
Delinquent
Local
Service
State and
and Special
Revenues &
Ended
Taxes (1)
Taxes
Revenues (2)
State Aid
Agreements
County Grants
Items (3)
Other Items
Total
Dec. 31,
2015
82,393,735
$
40,182
$
10,374,610
$
8,829,801
$
-
$
2,126,416
$
28,618,678
$
2,185,917
$
134,569,339
$
2014
79,952,344
68,683
10,286,681
9,032,464
120,000
19,649,276
34,405,006
2,335,803
155,850,257
2013
80,001,589
279,390
11,070,119
9,330,965
131,799
5,444,098
33,452,291
7,019,657
146,729,908
2012
76,038,435
38,660
6,734,222
9,429,879
208,201
3,274,999
34,343,318
4,605,858
134,673,572
2011
*
39,095,801
65,525
2,807,541
8,961,605
136,576
2,039,777
7,149,400
3,417,776
63,674,001
June 30,
2011
69,149,103
51,653
6,100,718
9,455,185
4,225,400
5,539,980
34,168,960
3,705,936
132,396,935
2010
66,811,995
470,406
5,268,209
11,518,435
5,567,223
10,881,581
35,413,015
1,290,306
137,221,170
2009
66,928,052
221,666
4,526,434
11,715,559
5,425,400
3,096,131
30,664,498
2,624,583
125,202,323
2008
60,292,006
334,145
5,102,162
16,415,175
5,425,400
3,489,980
32,239,375
2,823,443
126,121,686
2007
52,922,289
20,491
5,142,121
17,329,244
5,425,400
5,865,142
27,346,098
1,001,106
115,051,891
(1)
Includes taxes levied for municipal purposes, library purposes and additions to local district school taxes (school debt service less applicable revenues).
(2)
Includes licenses, fees, permits, PILOTs and other items.
(3)
No surplus was utilized in the years ended June 30, 2011 and 2010.
*
The year ended December 31, 2011 is a six month "transition year".
CITY OF BAYONNE
STATISTICAL SECTION (UNAUDITED)
TEN-YEAR HISTORY OF GOVERNMENTAL REALIZED REVENUES
239
Table 3
CITY OF BAYONNE
FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014
COMPARATIVE SCHEDULES OF OPERATIONS AND CHANGES IN FUND BALANCE-CURRENT FUND
Year Ended
Year Ended
Amount
Percent
Amount
Percent
Revenue and Other Income Realized:
Miscellaneous Revenue Anticipated
43,588,535
$
19.44%
58,659,287
$
25.29%
Receipts from Delinquent Taxes
40,182
0.02%
68,683
0.03%
Receipts from Current Taxes
171,699,645
76.56%
167,331,053
72.14%
Miscellaneous Revenue Not Anticipated
2,125,715
0.95%
2,269,943
0.98%
Other Credits to Income
6,802,649
3.03%
3,622,476
1.56%
224,256,726
100.00%
231,951,442
100.00%
Expenditures:
Budget Appropriations
132,102,526
58.96%
151,456,260
62.23%
School, County and Special Improvement
District Taxes
89,305,910
39.86%
87,378,709
35.90%
Other Charges
2,635,536
1.18%
4,530,563
1.86%
224,043,972
100.00%
243,365,532
100.00%
Change in Operations, Net of Surplus Utilized
212,754
(11,414,090)
Fund Balance, Beginning of Year
5,067,253
16,481,343
Fund Balance, December 31
5,280,007
$
5,067,253
$
STATISTICAL SECTION (UNAUDITED)
December 31, 2015
December 31, 2014
240
Table 4
CITY OF BAYONNE
STATISTICAL SECTION (UNAUDITED)
TEN-YEAR HISTORY OF TAX RATE AND APPORTIONMENT OF TAX RATE
Year Ended
Total Tax Rate
Municipal
County*
Local School
Dec. 31, 2015
7.674
3.206
1.300
3.168
Dec. 31, 2014
7.445
3.064
1.243
3.138
Dec. 31, 2013
7.339
3.034
1.240
3.065
Dec. 31, 2012
7.114
2.853
1.246
3.015
Dec. 31, 2011
6.849
2.877
1.144
2.828
June 30, 2011
6.849
2.877
1.144
2.828
June 30, 2010
6.288
2.637
1.100
2.551
June 30, 2009
6.288
2.410
1.092
2.786
June 30, 2008
6.052
2.304
1.019
2.729
June 30, 2007
5.697
2.199
0.984
2.514
* Includes County Open Space.
Table 5
Tax Title
Delinquent
Percent of
Year Ended
Liens
Taxes
Total
Tax Levy
Dec. 31, 2015
654,855
$
748,057
$
1,402,912
$
0.83%
Dec. 31, 2014
617,705
841,686
1,459,391
0.88%
Dec. 31, 2013
581,664
241,657
823,321
0.50%
Dec. 31, 2012
546,136
562,173
1,108,309
0.68%
Dec. 31, 2011
511,697
402,491
914,188
1.12%
June 30, 2011
495,123
350,956
846,079
0.55%
June 30, 2010
463,859
44,344
508,203
0.33%
June 30, 2009
433,261
1,526,654
1,959,915
1.30%
June 30, 2008
400,111
1,193,876
1,593,987
1.12%
June 30, 2007
371,417
1,159,203
1,530,620
1.19%
TEN-YEAR HISTORY OF DELINQUENT TAXES AND TAX TITLE LIENS
(per $100 of assessed valuation)
241
Table 6
CITY OF BAYONNE
STATISTICAL SECTION (UNAUDITED)
Cash
Collection
Year Ended
Tax Levy
Collections
Percentage
Dec. 31, 2015
169,948,441
$
169,099,645
$
99.50%
Dec. 31, 2014
166,250,146
164,611,053
99.01%
Dec. 31, 2013
165,793,165
163,980,742
98.91%
Dec. 31, 2012
163,485,249
161,759,655
98.94%
Dec. 31, 2011
81,472,499
79,547,559
97.64%
June 30, 2011
152,564,269
152,262,479
99.80%
June 30, 2010
152,265,937
151,474,573
99.48%
June 30, 2009
150,544,877
149,667,768
99.42%
June 30, 2008
142,037,946
141,516,792
99.63%
June 30, 2007
129,002,015
128,673,732
99.75%
Table 7
As of
Amount
Dec. 31, 2015
6,474,000
$
Dec. 31, 2014
6,474,000
Dec. 31, 2013
6,474,000
Dec. 31, 2012
6,474,000
Dec. 31, 2011
8,599,000
June 30, 2011
8,599,000
June 30, 2010
8,563,300
June 30, 2009
8,634,700
June 30, 2008
8,634,700
June 30, 2007
8,636,400
TEN-YEAR HISTORY OF PROPERTY ACQUIRED BY TAX TITLE LIEN LIQUIDATION
TEN-YEAR HISTORY OF TAX LEVIES AND COLLECTIONS
242
Table 8
CITY OF BAYONNE
STATISTICAL SECTION (UNAUDITED)
Percentage of Net
Assessed Value
Net Assessed
Estimated Full
To Estimated Full
Year Ended
Valuation Taxable
Cash Valuation
Cash Valuation
Dec. 31, 2015
2,210,569,308
$
5,371,056,108
$
41.16%
Dec. 31, 2014
2,221,521,136
5,132,936,258
43.28%
Dec. 31, 2013
2,249,425,125
5,213,320,757
43.15%
Dec. 31, 2012
2,288,659,464
5,572,966,948
41.07%
Dec. 31, 2011
2,321,613,674
5,762,588,636
40.29%
June 30, 2011
2,318,926,569
5,789,043,010
40.06%
June 30, 2010
2,379,080,059
6,406,764,904
37.13%
June 30, 2009
2,394,463,816
6,694,809,463
35.77%
June 30, 2008
2,381,576,097
6,439,544,725
36.98%
June 30, 2007
2,381,422,330
5,747,770,003
41.43%
NET ASSESSED VALUATION TO ESTIMATED FULL CASH VALUATION
TEN-YEAR HISTORY OF PERCENTAGE OF
243
Table 9
Ratio of Debt
Ratio of Debt
Sevice to
Sevice to
Total Budget (1)
Current Fund
Total Realized
Current Fund
Year Ended
Principal
Interest
Total
Appropriations
Expenditures
Budget Revenue
Revenue
Dec. 31,
2015
12,804,897
$
10,357,133
$
23,162,030
132,410,489
17.49 %
132,443,624
$
17.49%
2014
11,718,115
11,352,915
23,071,030
151,456,260
15.23 %
153,580,314
15.02%
2013
11,836,534
10,064,996
21,901,530
133,563,013
16.40 %
139,710,251
15.68%
2012
9,258,709
13,382,532
22,641,241
130,861,459
17.30 %
130,067,714
17.41%
2011**
8,328,043
6,031,349
14,359,392
60,131,168
23.88 %
60,256,225
23.83%
June 30,
2011
8,819,734
10,786,777
19,606,511
128,671,996
15.24 %
128,690,999
15.24%
2010
11,055,314
14,193,089
25,248,403
135,331,952
18.66 %
135,930,864
18.57%
2009
8,660,000
12,150,041
20,810,041
122,328,685
17.01 %
122,577,740
16.98%
2008
7,778,172
9,024,940
16,803,112
121,507,607
13.83 %
123,298,243
13.63%
2007
7,123,710
8,666,279
15,789,989
136,604,488
11.56 %
114,050,785
13.84%
*
Includes amounts paid or charged for bonded debt and notes issued in anticipation thereof, for City and School Purposes.
Does not include tax anticipation notes, loans or capital lease transactions.
**
The year ended December 31, 2011 is a six month "transition year".
(1)
Budget after Modification less unexpended balances canceled.
Debt Service Requirement
TEN-YEAR HISTORY OF RATIO OF ANNUAL DEBT SERVICE* TO OPERATING EXPENDITURES AND REVENUES
CITY OF BAYONNE
STATISTICAL SECTION (UNAUDITED)
244
Table 10
CITY OF BAYONNE
STATISTICAL SECTION (UNAUDITED)
AS OF DECEMBER 31, 2015
Average Equalized Valuation
5,230,842,993
$
Debt Limit - 3 1/2% of Average Equalized Valuation
183,079,505
$
Net Debt
160,278,244
Remaining Borrowing Power / Debt Margin
22,801,261
$
Gross Debt
Deductions
Net Debt
Local School Debt
79,196,805
$
79,196,805
$
-
$
Self-Liquidating Purposes
2,855,000
2,855,000
-
Municipal Debt
176,599,750
16,321,506
160,278,244
Total
258,651,555
$
98,373,311
$
160,278,244
$
Overlapping Debt (Gross):
County of Hudson (December 31, 2015)
107,694,280
$
Hudson County Improvement Authority (December 31, 2015)
46,291,489
Bayonne Municipal Utilities Authority (December 31, 2015)
17,875
154,003,643
$
COMPUTATION OF LEGAL DEBT MARGIN AND OVERLAPPING DEBT
245
Table 11
CITY OF BAYONNE
STATISTICAL SECTION (UNAUDITED)
Ratio of Gross
Ratio of Net
Average
Debt to
Debt to
Year Ended
Equalized
Gross
Gross Debt
Equalized
Net
Net Debt
Equalized
June 30,
Population
Valuation
Debt
Per Capita
Valuation
Debt
Per Capita
Valuation
Dec. 31,
2015
63,024
5,230,842,993
$
258,651,555
$
4,104
$
4.94%
160,278,244
$
2,543
$
3.06%
2014
63,024
5,206,569,374
271,662,611
4,310
5.22%
156,469,222
2,483
3.01%
2013
63,024
5,360,107,444
285,560,960
4,531
5.33%
175,402,564
2,783
3.27%
2012
63,024
5,512,364,667
215,863,767
3,425
3.92%
102,863,564
1,632
1.87%
2011
63,024
5,885,001,025
224,203,150
3,557
3.81%
107,050,588
1,699
1.82%
June 30,
2011
63,024
6,215,253,093
240,045,473
3,809
3.86%
118,689,507
1,883
1.91%
2010
63,024
6,392,131,807
246,722,673
3,915
3.86%
119,357,171
1,894
1.87%
2009
61,842
6,158,802,322
329,167,730
5,323
5.34%
124,107,664
2,007
2.02%
2008
61,842
5,596,676,492
270,708,369
4,377
4.84%
129,088,302
2,087
2.31%
2007
61,842
4,885,105,940
255,424,276
4,130
5.23%
123,068,880
1,990
2.52%
Included above is all debt as required by NJSA 40A:4-20.
Operating debt, such as tax anticipation notes, emergency notes, special emergency notes and utility revenue notes, are not included.
TEN-YEAR HISTORY OF RATIO OF BONDED AND BONDABLE DEBT TO EQUALIZED VALUE AND DEBT PER CAPITA
246
Table 12
Unemployment Rate (%)
Year
City
County
State
2015
6.5
5.3
5.6
2014
7.3
6.5
6.6
2013
9.8
9.1
8.2
2012
11.6
10.3
9.3
2011
11.1
10.3
9.1
2010
11.5
10.8
9.4
2009
11.3
10.7
10.7
2008
6.5
6.7
7.2
2007
5.3
5.0
4.2
2006
5.5
5.5
4.6
Source: State of New Jersey Department of Labor and Workforce Development website.
TEN-YEAR HISTORY OF UNEMPLOYMENT STATISTICS
CITY OF BAYONNE
STATISTICAL SECTION (UNAUDITED)
247
GENERAL SECTION
CITY OF BAYONNE
GENERAL COMMENTS
DECEMBER 31, 2015
CONTRACTS AND AGREEMENTS REQUIRED TO BE ADVERTISED PER N.J.S.A. 40A:11-3
AND 40A:11-4, et seq.
N.J.S.A. 40A:11-3 states “When the cost or price of any contract awarded by the contracting agent in the
aggregate does not exceed in a contract year the total sum of $17,500, the contract may be awarded by a
purchasing agent or other employee so designated by the governing body when so authorized by
ordinance or resolution, as appropriate to the contracting unit, without public advertising for bids, except
that the governing body of any contracting unit may adopt an ordinance or resolution to set a lower
threshold for the receipt of public bids or the solicitation of competitive quotations. If a purchasing
agent has been appointed, the governing body of the contracting unit may establish that the bid threshold
may be up to $25,000 or the threshold amount adjusted by the Governor pursuant to subsection c. of this
section. Such authorization may be granted for each contract or by a general delegation of the power to
negotiate and award such contracts pursuant to this section.”
The current threshold amount as adjusted by the Governor is $40,000. The City has appointed a
Qualified Purchasing Agent and has passed a resolution raising its bid threshold to the maximum
allowable amount of $40,000.
N.J.S.A. 40A:11-4 states “Every contract awarded by the contracting agent for the provision or
performance of any goods or services, the cost of which in the aggregate exceeds the bid threshold, shall
be awarded only by resolution of the governing body of the contracting unit to the lowest responsible
bidder after public advertising for bids and bidding therefor, except as is provided otherwise in this act
or specifically by any other law. The governing body of a contracting unit may, by resolution approved
by a majority of the governing body and subject to subsections b. and c. of this section, disqualify a
bidder who would otherwise be determined to be the lowest responsible bidder, if the governing body
finds that it has had prior negative experience with the bidder.”
The governing body of the City has the responsibility of determining whether the expenditures in any
category will exceed $40,000 within the fiscal year. Where questions arise as to whether any contract or
agreement might result in a violation of the Statute, the opinion of City Counsel should be sought before
a commitment is made.
248
CITY OF BAYONNE
GENERAL COMMENTS
DECEMBER 31, 2015
CONTRACTS AND AGREEMENTS REQUIRED TO BE ADVERTISED PER N.J.S.A. 40A:11-3
AND 40A:11-4, et seq. (continued)
The minutes indicate that bids were requested by public advertisement and contracts awarded for the
following items:
- Emergency Medical Services
-
Improvements to Ice rink
- Emergency Medical dispatch Services
-
Snow removal
- Sports field lighting installation
-
Rock Salt
- 2015 NJDOT and CDBG paving project
-
Animal Control Services
- Collection of Solid Waste
-
Rock Salt
- ADA compliant plaground equipment
-
Collection of Recycling
- Collection of Recycling
Inasmuch as the system of records did not provide for an accumulation by categories of payments for the
performance of any work or the furnishing or hiring of any materials or supplies, the results of such an
accumulation could not be reasonably ascertained. Disbursements were reviewed, however, to
determine whether any clear-cut violations existed.
Our examination of expenditures did not reveal any individual payments, contracts or agreements in
excess of $40,000, "for the performance of any work, or the furnishing of any materials, supplies or
labor, or the hiring of teams or vehicles," other than those for which bids had been previously sought by
public advertisements or for which a resolution had been previously adopted under the provision of
N.J.S.A. 40A:11-6.
CONTRACTS AND AGREEMENTS EXCEPTED FROM PUBLIC ADVERTISEMENT FOR
BIDS PER N.J.S.A. 40A:11-5, et seq., 40A:11-6.1(b) AND 40A:11-12
N.J.S.A. 40A:11-12 states: “Any contracting unit under this act [the City] may without advertising for
bids, or having rejected all bids obtained pursuant to advertising therefore, purchase any goods or
services under any contract or contracts for such goods or services entered into on behalf of the State by
the Division of Purchase and Property in the Department of the Treasury.”
When utilizing state contracts, as the contracts are commonly referred to, the City is required to place its
order with the vendor offering the lowest price, including delivery charges, that best meets the City’s
requirements, and is also required to document such with specificity prior to placing the order.
The minutes indicate that the following resolutions were adopted authorizing the awarding of contracts
or agreements for “state contracts” per N.J.S.A. 40A:11-12.
249
CITY OF BAYONNE
GENERAL COMMENTS
DECEMBER 31, 2015
CONTRACTS AND AGREEMENTS EXCEPTED FROM PUBLIC ADVERTISEMENT FOR
BIDS PER N.J.S.A. 40A:11-5, et seq., 40A:11-6.1(b) AND 40A:11-12 (continued)
- Chain Link Fence
-
Oil and fuel for municipal vehicles
- Fire Department equipment
-
Food and agriculture products
- Electric equipment and supplies
-
Automobile maintenance and equipment
- Radios and equipment-Police department
N.J.S.A. 40A:11-5.1(a)(i) states: “Any contract the amount of which exceeds the bid threshold, may be
negotiated and awarded by the governing body without public advertising for bids and bidding therefor
and shall be awarded by resolution of the governing body if the subject matter thereof consists of
professional services. The governing body shall in each instance state supporting reasons for its action
in the resolution awarding each contract and shall forthwith cause to be printed once, in the official
newspaper, a brief notice stating the nature, duration, service and amount of the contract, and that the
resolution and contract are on file and available for public inspection in the office of the clerk.”
The minutes indicate that resolutions were adopted and advertised authorizing the awarding of contracts
or agreements for “professional services” per N.J.S.A. 40A:11-5 as follows:
- Lead based paint inspections/risk assessments
-
Engineering services
- Professional planning, engineering, and traffic engineering
-
Discounted vision care network
services
-
Envirnomental services
- Animal cruelty investigator
-
Various Engineering Services
- Redevelopment/Land Use attorney
-
Auditor
- Bond counsel/special counsel
-
Licensed insurance broker services and products
There are additional exceptions noted in N.J.S.A. 40A:11-5, et seq., for contracts which may be
negotiated and awarded by resolution of the governing body without public advertising for bids. The
City has also awarded contracts under other exceptions noted in N.J.S.A. 40A:11-5 including:
N.J.S.A. 40A:11-5.1(dd), the provision or performance of goods or services for the support or
maintenance of proprietary computer hardware and software, except that this provision shall not
be utilized to acquire or upgrade non-proprietary hardware or to acquire or update non-
proprietary software;
250
CITY OF BAYONNE
GENERAL COMMENTS
DECEMBER 31, 2015
CONTRACTS AND AGREEMENTS EXCEPTED FROM PUBLIC ADVERTISEMENT FOR
BIDS PER N.J.S.A. 40A:11-5, et seq., 40A:11-6.1(b) AND 40A:11-12 (continued)
N.J.S.A. 40A:11-5.1(f), the supplying of any product or the rendering of any service by a public
utility, which is subject to the jurisdiction of the Board of Public Utilities or the Federal Energy
Regulatory Commission or its successor, in accordance with tariffs and schedules of charges
made, charged or exacted, filed with the board or commission, and
N.J.S.A. 40A:11-5.1(x) The printing of municipal ordinances or other services necessarily
incurred in connection with the revision and codification of municipal ordinances.
N.J.S.A. 40A:11-6.1(b) states: “When in excess of the bid threshold, and after documented effort by the
contracting agent [the City] to secure competitive quotations, a contract for extraordinary unspecifiable
services may be awarded upon a determination in writing by the contracting agent that the solicitation of
competitive quotations is impracticable. Any such contract shall be awarded by resolution of the
governing body.”
N.J.S.A. 40A:11-5.1(a)(ii) further states: “The governing body shall in each instance state supporting
reasons for its action in the resolution awarding each [extraordinary unspecifiable service] contract and
reasons for its action in the resolution awarding each contract and shall forthwith cause to be printed…a
brief notice of the award of such contract.”
The notice shall be printed once, in the official newspaper, a brief notice stating the nature, duration,
service and amount of the contract, and that the resolution and contract are on file and available for
public inspection in the office of the clerk.
The minutes indicate that resolutions were adopted and advertised authorizing the awarding of contracts
or agreements for “extraordinary unspecifiable services” per N.J.S.A. 40A:11-6.1(b) as follows:
NONE
251
CITY OF BAYONNE
GENERAL COMMENTS
DECEMBER 31, 2015
EXPENDITURE LESS THAN BID THRESHOLD, BUT 15% OR MORE OF THAT AMOUNT
PER N.J.S.A. 40A:11-6.1
N.J.S.A. 40A:11-6.1 states: “For all contracts that in the aggregate are less than the bid threshold but 15
percent or more of that amount, except for paragraph (a) of subsection (1) of section 5 of P.L. 1971,
c.198 (C.40A:11-5) concerning professional services and paragraph (b) of that subsection concerning
work by employees of the contracting unit, the contracting unit shall award the contract after soliciting
at least two competitive quotations, if practicable.” The City advised us that quotations were, for the
most part, solicited for items, the cost of which was $6,000 or more, within the terms of N.J.S.A.
40A:11-6.1.
COLLECTION OF INTEREST ON DELINQUENT TAXES AND ASSESSMENTS
Statutes provide the method for authorizing interest and the maximum rate to be charged for the
nonpayment of taxes, or assessments on or before the date when they would become delinquent.
The governing body adopted the following resolution authorizing interest to be charged on delinquent
taxes:
“In all cases, interest shall be calculated and charged at the rates of 8% per annum on the
first $1,500 of the delinquency, and 18% per annum on any delinquent amounts in excess
of $1,500, to be calculated from the date upon which the taxes first became due and
payable to the date that the payment is actually received.”
In all instances tested, the collector’s records indicate that interest was collected in accordance with the
foregoing resolution.
DELINQUENT TAXES AND TAX TITLE LIENS
The City did not hold a traditional tax sale but held a bulk levy tax sale, and was complete.
The following comparison is made of the number of tax title liens receivable for the most recent five
years:
252
CITY OF BAYONNE
GENERAL COMMENTS
DECEMBER 31, 2015
DELINQUENT TAXES AND TAX TITLE LIENS (continued)
Year Ended
Number
of Liens
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
11
11
11
11
11
It is essential to good management that all means provided by statute be utilized to liquidate tax title
liens in order to get such properties back on a tax paying basis.
CHANGE ORDERS EXCEEDING 20 PERCENT OF ORIGINALLY AWARDED CONTRACT
PRICE
Change orders exceeding the originally awarded contract price by more than 20% are allowed only in
limited instances. The authorization process requires a resolution of the governing body and an affidavit
of publication for notice in an officially designated newspaper of the entity. The City has certified in its
2016 budget the following change orders which exceeded 20% of the originally awarded contract during
2015:
NONE
253
CITY OF BAYONNE
COMMENTS AND RECOMMENDATIONS
DECEMBER 31, 2015
FINDING 1:
There are reserves in the City’s Current Fund which have been inactive for
several years. The table below indicates $22,403 of the $3,528,527 reserved has
had no activity in four years or more.
Years Since
Last Activity
Year of Last Activity
Reserve for Other
1 or less
CY 2015
2,941,124
$
2
CY 2014
342,507
3
CY 2013
222,493
4
CY 2012
-
5
TY 2011 / FY 2011
-
6 and more
Prior to FY 2011
22,403
3,528,527
$
This finding is repeated from the prior year.
Recommendation:
Although the City wrote off a substantial amount of inactive reserves in the prior
year, the City should review the rest of the inactive reserves in its Current Fund
for proper follow-up and disposition.
FINDING 2:
The City’s fixed assets inventory was not update for the 2015 year.
Recommendation:
The City should implement procedures which will provide stronger controls over
additions and disposals of fixed assets.
FINDING 3:
There are interfund balances on the various balance sheets at year end. This
finding is repeated from the prior year.
Recommendation:
Interfund balances should be avoided, if possible. All interfunds should be settled
prior to year end.
254
CITY OF BAYONNE
COMMENTS AND RECOMMENDATIONS
DECEMBER 31, 2015
FINDING 4:
During expenditure testing, there were many Business Registration Certificates
(BRC’s) unavailable for review and many instances where purchase orders were
dated after the invoice date. This finding is repeated from the prior year.
Recommendation:
The City should maintain all vendor BRC’s on file and ready for audit review and
assure purchase orders are issued prior to ordering goods or services.
FINDING 5:
During payroll testing, there were forty-four instances where voluntary deduction
documentation was not available for review and nine instances where employee
W-4 forms were not available for review. This this finding is repeated from the
prior year.
Recommendation:
The City should keep all voluntary deduction documentation and W-4 forms in
each employees personnel file. Archiving these documents makes it difficult to
verify during audit procedures.
FINDING 6:
The City’s departments do not reconcile their permits/licenses issued with the tax
collectors monthly cash report. This finding is repeated from the prior year.
Recommendation:
Every department must maintain ledgers of permits/licenses issued and reconcile
them to the monthly reports provided by the tax office. If there are differences,
they must be reconciled on a monthly basis.
FINDING 7:
During 1099/W-9 testing, there were 46 out of 60 W-9 forms were not available
for review. This finding is repeated from the prior year
Recommendation:
The City should maintain all 1099’s and W-9 forms on file.
FINDING 8:
Not all trust reserves have Division of Local Government Services approval.
Recommendation:
The City should prepare dedication by rider resolutions for each trust reserve
account.
FINDING 9:
The Police Department does not turn over deposits to the Tax Collector on a
timely basis. This finding is repeated from the prior year.
Recommendation:
As required by N.J.S.A 40A:5-15, all funds collected must be deposited within 48
hours of receipt.
255
CITY OF BAYONNE
COMMENTS AND RECOMMENDATIONS
DECEMBER 31, 2015
**********************
Corrective Action
In accordance with regulations promulgated by the Single Audit Act and the Division of Local
Government Services, all municipalities are required to prepare and submit to the Division of Local
Government Services, a Corrective Action Plan with regard to audit deficiencies. This plan must be
approved by formal resolution of the governing body and submitted within 60 days from the date the
audit is received.
Status of Prior Years’ Audit Recommendations
In accordance with Government Auditing Standards, a review was performed on all prior year’s
recommendations. With the exception of those findings noted as being repeated from the prior year,
corrective action was taken on all prior year recommendations.
We noted certain other matters that we reported in the accompanying schedule of findings and
questioned costs section of this report. Such matters are required to be reported under Government
Auditing Standards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards and N.J. OMB Circular 15-
08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid
**********************
256
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