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Borough of Hightstown 2023 Annual Audit (PDF)
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Executive Summary
The Borough of Hightstown's Annual Comprehensive Financial Report for the year ended December 31, 2023, includes an independent auditor's report, financial statements for various funds (Current Fund, Trust Fund, General Capital Fund, Water-Sewer Utility Fund), and supplementary schedules. The audit was conducted in accordance with government auditing standards and standards prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. The report provides an overview of the Borough's financial position and the results of its operations.
Key areas covered in the report include financial statements on a regulatory basis, details on fund balances, revenues, expenditures, and debt. The report also touches upon internal control matters, compliance with laws and regulations, and recommendations for improvement. An Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance is included. This report highlights the scope of testing and compliance results. Roster of Officials are also noted in this document.
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--- Document: Borough of Hightstown 2023 Annual Audit (PDF) Document ---
ANNUAL COMPREHENSIVE FINANCIAL REPORT OF
BOROUGH OF HIGHTSTOWN
156 Bank Street
Hightstown, New Jersey 08520
FOR THE YEAR ENDED DECEMBER 31, 2023
ROSTER OF OFFICIALS
FINANCIAL SECTION
BOROUGH OF HIGHTSTOWN
TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2023
1
Independent Auditors' Report
2-4
Independent Auditors' Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements -
Regulatory Basis Performed in Accordance With Government Auditing Standards
5-6
Exhibit
Number
.FINANCIAL STATEMENTS
A
Current Fund Comparative Balance Sheet - Regulatory Basis
A-1
Current Fund Statement of Operations and Change in Fund Balance -
Regulatory Basis
A-2
Current Fund Statement of Revenues - Regulatory Basis
A-3
Current Fund Statement of Expenditures - Regulatory Basis
B
Trust Fund Comparative Balance Sheet - Regulatory Basis
C
General Capital Fund Comparative Balance - Regulatory Basis
C-1
General Capital Fund Statement of Fund Balance - Regulatory Basis
D
Water-Sewer Utility Fund Comparative Balance Sheet - Regulatory
Basis
D-1
Water-Sewer Utility Fund Comparative Statement of Operations and
Change in Operating Fund Balance - Regulatory Basis
D-2
Water-Sewer Utility Capital Fund Statement of Capital Fund Balance -
Regulatory Basis
D-3
Water-Sewer Utility Operating Fund Statement of Revenues -
Regulatory Basis
D-4
Water-Sewer Utility Operating Fund Statement of Expenditures -
Regulatory Basis
E
Statement of Capital (General Fixed) Assets
Notes to Financial Statements
Required Supplementary Schedules
RSl-1
Schedule of Borough Contributions - Public Employees
Retirement System (PERS)
RSl-2
Schedule of Borough's Proportionate Share of the Net Pension
Liability - Public Employees Retirement System (PERS)
RSl-3
Schedule of Borough's Proportionate Share of the Net Pension
Liability - Police and Fireman Retirement System (PFRS)
RSl-4
Schedule of Borough Contributions - Police and Fireman
Retirement System (PFRS)
7-8
9
10-12
13-17
18-19
20
21
22-23
24
25
26
27
28
29-76
77
78
79
80
Exhibit
Number
BOROUGH OF HIGHTSTOWN
TABLE OF CONTENTS (CONTINUED>
YEAR ENDED DECEMBER 31. 2023
SUPPLEMENTARY - FUND AND ACCOUNT SCHEDULES
A-4
A-5
A-6
A-7
A-8
A-9
A-10
A-11
A-12
A-13
A-14
A-15
A-16
A-17
A-18
A-19
A-20
B-1
B-2
B-3
B-4
B-5
B-6
B-7
B-8
B-9
B-10
B-11
B-12
B-13
B-14
Current Fund:
Schedule of Cash
Schedule of Due from/(to) State of New Jersey
Schedule of Taxes Receivable and Analysis of Property Tax Yield
Schedule of Tax Title Liens
Schedule of Accounts Payable
Schedule of Reserve for Fire Safety and Code Enforcement
Schedule of Revenue Accounts Receivable
Schedule of 2022 Appropriation Reserves
Schedule of Prepaid Taxes
Schedule of Tax Overpayments
Schedule of Regional District School Tax Payable
Schedule of County Taxes Payable
Schedule of Due to State of New Jersey
Schedule of Cash - Grant Fund
Schedule of Grants Receivable - Grant Fund
Schedule of Reserve for Grants - Appropriated - Grant Fund
Schedule of Reserve for Grants - Unappropriated - Grant Fund
Trust Fund:
Schedule of Trust Cash - Treasurer
Schedule of Due to NJS Department of Health
Schedule of Reserve for Animal Control Fund Expenditures
Schedule of Deposits for Redemption of Tax Sale Certificates
Schedule of Regional Contribution Agreement - Manalapan
Schedule of Due from Current Fund
Schedule of Reserve for Law Enforcement Fund
Schedule of Reserve for Public Defender
Schedule of Unemployment Trust Fund
Schedule of Payroll Deductions Payable
Schedule of Miscellaneous Trust Funds
Schedule of Reserve for Escrow Fees
Schedule of Housing Trust
Schedule of Length of Service Award Program [Unaudited]
81
82
83
84
85
85
86
87-89
90
91
91
92
93
94
95
96
97
98
99
100
101
101
102
102
103
103
104
105
106
107
108
Exhibit
Number
BOROUGH OF HIGHTSTOWN
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED DECEMBER 31. 2023
SUPPLEMENTARY - FUND AND ACCOUNT SCHEDULES (CONTINUED)
C-2
C-3
C-4
C-5
C-6
C-7
C-8
C-9
C-10
C-11
C-12
C-13
C-14
C-15
D-5
D-6
D-7
D-8
D-9
D-10
D-11
D-12
D-13
D-14
D-15
D-16
D-17
D-18
D-19
D-20
D-21
D-22
D-23
D-24
D-25
General Caoital Fund:
Schedule of General Capital Fund Cash - Treasurer
Analysis of Capital Fund Cash and Investments
Schedule of Deferred Charges to Future Taxation - Funded
Schedule of Deferred Charges to Future Taxation - Unfunded
Schedule of Grants Receivable
Schedule of Various Reserves
Schedule of Improvement Authorizations
Schedule of Reserve for Capital Improvement Fund
Schedule of Bond Anticipation Notes
Schedule of Due from Water-Sewer Capital Fund
Schedule of General Serial Bonds
Schedule of Capital Improvement Loans
Schedule of Reserve for Encumbrances
Schedule of Bonds and Notes Authorized but Not Issued
Water-Sewer Utilitv Operating Fund:
Schedule of Utility Cash - Collector/Treasurer
Schedule of Consumer Accounts Receivable
Schedule of 2022 Appropriation Reserves
Schedule of Consumer Overpayments
Schedule of Accrued Interest on Bonds, Loans and Notes
Water-Sewer Utility Capital Fund:
Schedule of Utility Capital Cash
Analysis of Cash
Schedule of Grant Receivable - FEMA
Schedule of Fixed Capital
Schedule of Fixed Capital Authorized and Uncompleted
Schedule of Due to Water-Sewer Utility Operating Fund
Schedule of Sewer Serial Bonds
Schedule of Loans Payable
Schedule of Bond Anticipation Notes
Schedule of Reserve for Debt Services
Schedule of Improvement Authorizations
Schedule of Reserve for Encumbrances
Schedule of Reserve for Amortization
Schedule of Deferred Reserve for Amortization
Schedule of Capital Improvement Fund
Schedule of Bonds and Notes Authorized but Not Issued
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135-136
137
138
139
140
141
141
142
143
BOROUGH OF HIGHTSTOWN
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED DECEMBER 31. 2023
SUPPLEMENTARY & STATISTICAL DATA
Combined Balance Sheet - All Funds
Comparative Statement of Operations and Change in Fund Balance - Current Fund
Comparative Statement of Operations and Change in Fund Balance - Water
and Sewer Utility Operating Fund
Comparative Schedule of Tax Rate Information
Comparison of Tax Levies and Current Collection
Delinquent Taxes and Tax Title Liens
Valuation of Property
Real Property Classification
Property Acquired by Tax Title Lien Liquidation
Comparison of Water and Sewer Utility Levies
Comparative Schedule of Fund Balances
Summary of Municipal Debt
Summary of Statutory Debt condition - Annual Debt Statement
Borrowing Power under NJSA 40A:2-6
Calculation of Self-Liquidating Purpose Water-Sewer Utility per NJSA 40A:2-45
AUDITOR'S COMMENTS AND RECOMMENDATIONS
General Comments:
Internal Control Matters
Scope of Audit
Contracts and Agreements Required to be Advertised for N.J.S. 40A: 11-4
Collection of Interest on Delinquent Taxes, Utility Charges and Assessments
Delinquent Taxes and Tax Title Liens
Water-Sewer Utility Operating Fund
Cash Balances
Revenues
Expenditures
Payroll
Miscellaneous Comments:
lnterfunds
Construction Code Official
Aged or Inactive Accounts
Technical Directives - State of New Jersey
Length of Service Awards Program
Internal Control Documentation
Administration and Accounting of State and Federal Grants
Cybersecurity
Other Officials Collecting Fees
Capital Funds
Deferred Charges
Presentation of Financial Statements
Appreciation
Recommendations
144-145
146
147
148
148
148
149
149
150
150
150
151
152
152
152
153
154
154
155
156
156
156
157
157
157
157
158
158
158
159
159
159
159
159
160
160
160
161
162
ROSTER OF OFFICIALS
BOROUGH OF HIGHTSTOWN
ROSTER OF OFFICIALS
DECEMBER 31. 2023
Governina Bodv
Susan Bluth, Mayor
Joshua Jackson, Council President
Joseph Cicalese, Councilmember
Cristina Fowler, Councilmember
Todd Frantz, Councilmember
Jeet Gulati, Councilmember
Frederick Montferrat, Councilmember
Other Officials
Dimitri Musing, Borough Administrator
Margaret Riggio, Borough Clerk, Purchasing Agent, Registrar of Vital Statistics
George Lang, Chief Financial Officer
Pamela Lewis, Tax Collector/Water-Sewer Collector
Ken Pacera, Tax Assessor
Seth Kurs, Magistrate
Carolyn Gaynor, Court Administrator
Timothy McNichols, Prosecutor
Carmela Roberts of Roberts Engineering Group, Borough Engineer
Frederick Raffetto of Hill Wallack, LLC, Borough Attorney
Robert J. Merryman of Apruzzese, McDermott, Mastro & Murphy
Borough Labor Counsel Attorney
Edward McManimon of McManimon, Scotland & Baumann, LLC, Bond Counsel
- 1 -
FINANCIAL SECTION
SANJUEL KLEIN AND Co:MPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS
550 BROAD STREET, 11TH FLOOR
NEWARK, N.J. 07102-9969
PHONE (973) 624-6100
FAX (973) 624-6101
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and Members
of the Borough Council
Borough of Hightstown
County of Mercer
State of New Jersey
To the Honorable Mayor and Members of the Borough Council:
Report on the Financial Statements
36 WEST MAIN STREET, SUITE 303
FREEHOLD, N.J. 07728-2291
PHONE (732) 780-2600
FAX (732) 780-1030
We have audited the financial statements - regulatory basis of the various funds and account groups of
the Borough of Hightstown, County of Mercer, State of New Jersey as of December 31, 2023, and the
related statement of operations and change in fund balance - regulatory basis for the year then ended,
the related statement of revenues - regulatory basis, statement of expenditures - regulatory basis, and
the related notes to the financial statements for the year then ended.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements -
regulatory basis, in accordance with accounting principles and practices prescribed by the Division of
Local Government Services, Department of Community Affairs, State of New Jersey ("the Division"); this
includes 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 fraud or
error.
Auditor's Responsibilitv
Our responsibility is to express an opinion on these financial statements - regulatory basis, based on our
audit. We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States and auditing standards prescribed by
the Division of Local Government Service, Department of Community Affairs, State of New Jersey. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
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 entity'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 entity's internal control.
·
MEMBERS AMERICAN INSTITUTE oF CERTIFIED PUBLIC AccouNTANTS
vvvvw.samuelklein-cpa-rma.com
- 2 -
INDEPENDENT AUDITORS' REPORT
(CONTINUED)
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 Ooinion on U.S. Generallv Accepted Accounting Principles
As described in Note 1 of the financial statements -
regulatory basis, the financial statements are
prepared by the Borough on a basis of the financial reporting provisions of the regulatory basis of the
accounting and budget laws of the Division of Local Government Services, Department of Community
Affairs, State of Jersey which is a basis of accounting other than accounting principles generally accepted
in the United States of America, to meet the requirements of the State of New Jersey.
The effects on the financial statements of the variances between the regulatory basis of accounting
described in Note 1 and accounting principles generally accepted in the United States of America,
although not reasonably determinable, are presumed to be material.
Adverse Ooinion on U.S. Generally Accepted Accountina Princioles
In our opinion, because of the significance of the matters discussed in the "Basis for Adverse Opinion on
the United States Generally Accepted Accounting Principles" paragraph, the financial statements referred
to above do not present fairly in accordance with accounting principles generally accepted in the United
States of America, the financial position of each fund of the Borough of Hightstown, County of Mercer,
State of New Jersey as of December 31, 2023, and change in financial position or cash flows thereof for
the year then ended.
Basis for Disclaimer of Opinion on Lenath of Service Award Proaram Fund ("LOSAP")
As discussed in Note 1, the financial statements of the Length of Service Award Program Fund
("LOSAP") have not been audited, and we were not required by the Division to audit nor were we
engaged to audit the LOSAP financial statements as part of our audit of the Borough's financial
statements. The LOSAP financial activities are included in the Borough's Trust Fund, and represent
43.07% of the assets and liabilities, respectively, of the Borough's Trust Funds as of December 31, 2023.
Disclaimer of Ooinion on Length of Service Award Program Fund ("LOSAP")
Due to the fact that we were not required by the Division to audit nor were we engaged to audit the
LOSAP financial statements as part of our audit of the Borough's financial statements, we do not express
an opinion of the LOSAP financial statements.
Ooinion on Reaulatorv Basis of Accountina
In our opinion, except for the effects of such adjustments, if any, as might have been determined to be
necessary had the LOSAP financial statements been audited, the financial statements referred to above
present fairly, in all material respects the financial statements - regulatory basis of the various funds and
account groups of the Borough of Hightstown, County of Mercer, State of New Jersey, as of December
31, 2023, and the results of its operations and change in fund balance of such funds - regulatory basis for
the year then ended, and the revenues - regulatory basis, expenditures - regulatory basis of the various
funds and account groups for the year ended December 31, 2023 in conformity with accounting principles
and practices prescribed by the Division of Local Government Services, Department of Community
Affairs, State of New Jersey as described in Note 1.
- 3 -
Other Matters
Other Information
INDEPENDENT AUDITORS' REPORT
(CONTINUED)
Our audit was performed for the purpose of forming an opinion on the financial statements of the Borough
of Hightstown, County of Mercer, New Jersey. The information included in Supplementary Fund and
Account Schedules as listed in the table of contents are presented for purposes of additional analysis and
are not a required part of the financial statements of the Borough of Hightstown, County of Mercer, New
Jersey. The information included in Supplementary Fund and Account Schedules are the responsibility of
management and were derived from and related directly to the underlying accounting and other records
used to prepare the financial statements. The information has been subjected to auditing procedures
applied in the audit of the financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
financial statements, or to the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion,
the information is fairly stated, in all material respects, in relation to the financial statements - regulatory
basis taken as a whole.
The information contained Supplementary and Statistical Data have not been subjected to auditing
procedures applied in the audit of the financial statements and, accordingly, we do not express an
opinion, or provide any assurance on them.
Other Reoorting Required by Government Auditina Standards
In accordance with Government Auditing Standards, we have also issued our report dated April 29, 2025,
on our consideration of the Borough of Hightstown's internal control over financial reporting and on 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 Borough of
Hightstown's internal control over financial reporting ~St~
Freehold, New Jersey
April 29, 2025
-4-
Gerard Stankiewicz
Certified Public Accountant
Registered Municipal Accountant #431
SAMUEL KLEIN AND COMPANY, LLP
SAlVIUEL KLEIN AND COl\llP AL'1"Y' LLP
CERTIFIED PUBLIC ACCO U NTANTS
550 BROAD STREET, 1 .lTH FLOOR
NEWARK, N.J·. 07102-9969
PHONE (973) 624-6100
FAX (973) 624-6101
36 WEST MAIN STREET, SUITE 303
:F'REEHOLD, N . .J. 07728-2291
PHONE (732) 780-2600
F AX (732) 780-1030
INDEPENDENT AUDITORS 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
The Honorable Mayor and Members
of the Borough Council
Borough of Hightstown
County of Mercer
State of New Jersey
To the Honorable Mayor and Members of the Borough Council:
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 as prescribed by the Division of
Local Government Services, Department of Community Affairs, State of New Jersey ("the Division"), the
financial statements -
regulatory basis of the Borough of Hightstown (herein referred to as "the
Borough"), as of and for the year ended December 31 , 2023, and the related notes to the financial
statements, which collectively comprise the Borough's financial statements - regulatory basis, and have
issued our report thereon dated April 29, 2025. Our report expressed a modified opinion on the financial
statements in conformity with this regulatory basis because we did not audit the Length of Service Award
Program (LOSAP).
Our report also expressed a modified opinion because of the departure from
accounting principles generally accepted in the United States of America as disclosed in Note 1.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements - regulatory basis, we considered the
Borough's internal control over financial reporting (internal control) to determine the audit procedures that
are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Borough's
internal control. Accordingly, we do not express an opinion on the effectiveness of the Borough's internal
control.
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. 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.
Me:MBERS AMERICAN INSTITUTE: OF' Ce:RTIF'IE:D Pueuc AccoUNTANTS
www.samuelklein-cpa-rma.com
- 5 -
INDEPENDENT AUDITORS 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 (CONTINUED)
Our consideration of internal control 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. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses except for the fact that the
financial statements as of December 31, 2023, were not presented on a timely basis and the General
Ledger for the year 2023, as presented for audit, required several adjusting journal entries to reconcile to
the detailed records. However, material weaknesses may exist that have not been identified.
Comoliance and Other Matters
As part of obtaining reasonable assurance about whether the Borough's financial statements - regulatory
basis are free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts and grants, 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 no instances of noncompliance that are required to be reported under
Government Auditing Standards.
Purpose of this Reoort
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 Borough'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 Borough's internal control and compliance,
accordingly, this communication is not suitable for any other purpose.
Freehold, New Jersey
April 29, 2025
- 6 -
Gerard Stankiewicz
Certified Public Accountant
Registered Municipal Accountant #431
SAMUEL KLEIN AND COMPANY, LLP
FINANCIAL STATEMENTS
ASSETS
Cash
Change Fund
Receivables and Other Assets with
Full Reserves:
Delinquent Taxes Receivable
Tax Title Liens Receivable
Prepaid County Tax
Revenue Accounts Receivable
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
CURRENT FUND
COMPARATIVE BALANCE SHEET
REGULATORY BASIS
Balance
Ref.
Dec. 31, 2023
A-4
$
5,206,247.21
205.00
$
5,206,452.21
A-6
$
291,875.06
A-7
257,921.53
A-15
45.02
A-10
13,693.21
Prepaid Regional School District Taxes
A-14
2,899.00
Interfunds:
Water-Sewer Utility Operating Fund
Water-Sewer Utility Capital Fund
Animal Control Fund
Grant Fund:
Cash
Grants Receivable
Interfu nds:
Current Fund
Water-Sewer Utility Capital Fund
Other Trust Fund
D
D
B
A
A-17
A-18
A
D
B
421,889.92
153,946.87
$
1,142,270.61
$
6,348,722.82
9,436.47
154,760.00
117,746.77
4,755.80
27,842.58
$
314,541.62
$
6,663,264.44
Exhibit A
Page 1 of2
Balance
Dec. 31, 2022
$ 4,099,148.22
205.00
$ 4,099,353.22
$
224,877.75
240,868.08
21,161.62
2,899.00
174,431.13
952.97
231.68
$
665,422.23
$ 4,764,775.45
34,971.68
177,368.00
377,771.52
27,842.58
$
617,953.78
$ 5,382,729.23
The accompanying notes to financial statements are an integral part of the financial statements.
- 7 -
LIABILITIES, RESERVES
AND FUND BALANCE
Liabilities:
Appropriation Reserve
Reserve for Encumbrances
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
CURRENT FUND
COMPARATIVE BALANCE SHEET
REGULATORY BASIS
Balance
Ref.
Dec. 31, 2023
A-3, A-11
$
626,951.29
A-3, A-11
187,953.41
Due to State of New Jersey P. L. 1971
A-5
682.88
Prepaid Taxes
A-12
91,515.27
Accounts Payable
A-8
64,708.24
Tax Overpayments
A-13
9,594.31
Due County for Added & Omitted Taxes
A-15
Reserve for Fire Safety & Code Enforcement
A-9
40,117.00
Interfunds:
Grant Fund
A
117,746.77
Other Trust Fund
B
233,765.74
Animal Control Fund
B
659.32
General Capital Fund
c
2,487 ,366. 54
Payroll Fund
A-3, A-11
7,970.28
Unemployment Fund
A-11
10,000.00
Due to State of New Jersey
A-16
2,836.00
$
3,881,867.05
Reserve for Receivables and Other Assets
A
1,142,270.61
Fund Balance
A-1
1,324,585.16
$
6,348,722.82
Grant Fund:
Reserve for Grants, Appropriated
A-19
$
299,120.97
Reserve for Encumbrances
A-19
4,511.65
Reserve for Grants, Unappropriated
A-20
10,909.00
Interfund - Water-Sewer Utility Operating Fund
A
$
314,541.62
$
6,663,264.44
$
Exhibit A
Page 2 of2
Balance
Dec. 31. 2022
955,135.82
324,421.25
500.00
123,635.29
223,725.48
4,244.28
4,115.80
40,117.00
377,771.52
233,765.74
424,008.94
5,000.00
509.00
$ 2,716,950.12
665,422.23
1,382,403.10
$ 4,764,775.45
$
276,424.73
27,153.00
183,483.05
130,893.00
$
617,953. 78
$ 5,382,729.23
The accompanying notes to financial statements are an integral part of the financial statements.
- 8 -
Exhibit A-1
BOROUGH OF HIGHTSTOWN
CURRENT FUND
STATEMENT OF OPERATIONS AND CHANGE IN FUND BALANCE REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2023
Revenue and Other Income Realized
Ref.
Year 2023
Year 2022
Fund Balance Anticipated
A-2
$
898,000.00
$
820,000.00
Miscellaneous Revenue Realized
A-2
1, 737, 785.86
1,473,631.17
Receipts from Delinquent Taxes
A-2
228,230.69
175,455.33
Receipts from Current Taxes
A-2
18,903,259.58
18,329,888. 21
Nonbudget Revenue
A-2
35,923.64
141,762.88
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
A-11
588,609.53
479,184.88
Cancellation of Prior Year Accounts Payable
A-8
132,718.53
Prior Year Interfund Liquidated
A
231.68
Total Income
$ 22,524, 759.51
$ 21,419,922.47
Expenditures
Budget and Emergency Appropriations:
Operations:
Salaries and Wages
A-3
3,092,141.00
$
2,963,374.00
Other Expenses
A-3
3,537,557.42
3,113,674.50
Capital Improvements
A-3
30,000.00
175,075.00
Municipal Debt Service
A-3
778,589.19
645,025.46
Deferred Charges and Statutory Expenditures
A-3
850,502.00
767,006.00
Total Budget
$
8,288,789.61
$
7,664,154.96
Regional School District Taxes
A-14
9,637,902.00
$
9,581,719.00
County Taxes
A-15
3,316,487.06
3,154,947.85
Prior Year Senior Citizen Deduction Disallowed
A-5
720.55
601.37
Prepaid Regional School District Taxes
A-14
2,899.00
Prepaid County Tax
A-15
45.02
Interfunds Advanced
A-4
400,497.71
175,615.78
Refund of Revenue
A-16
475.00
283.00
Grant Fund Cancellation
A-19
1,959.83
10,382.01
Miscellaneous Expenditure
A-18
37,700.67
l, 784.49
Total Expenditures
A-1
$ 21,684,577.45
$ 20,592,387.46
Excess of Revenue over Expenditures
$
840,182.06
$
827,535.01
Fund Balance, January 1
A
1,382,403.10
1,374,868.09
$
2,222,585.16
$
2,202,403.10
Decreased by:
Utilized as Anticipated Revenue
A-2
898,000.00
820,000.00
Balance, December 31
A
$
1,324,585.16
$
1,382,403.10
The accompanying notes to financial statements are an integral part of the financial statements.
- 9 -
ExhibitA-2
Page I of3
BOROUGH OF HIGHTSTOWN
CURRENT FUND
STATEMENT OF REVENUES REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31. 2023
Anticipated
Budget
Excess or
Ref
Revenues
Realized
(Deficit)
Surplus Anticipated
A-1
$
898,000.00
$
898,000.00
$
Miscellaneous Revenues:
Local Revenues:
Licenses:
Alcoholic Beverages
A-10
$
7,500.00
$
7,500.00
$
Other
A-10
12,000.00
22,899.00
10,899.00
Fees and Permits
A-10
20,600.00
20,073. 11
(526 89)
Fines and Costs:
Municipal Court
A-10
195,000.00
228,879.57
33,879.57
Interest and Costs on Taxes
A-10
44,000.00
48,232.53
4,232.53
Interest on Investments and Deposits
A-10
41,309.00
128,965.32
87,656.32
Lease of Borough Owned Property
A-10
70,000.00
77,760.82
7,760.82
390,409.00
534,310.35
143,901.35
State Aid Without Offsetting Appropriations:
Consolidated Municipal Property Tax Relief Aid
A-10
52,534.00
52,522.86
(11 14)
Energy Receipts Tax
A-10
507,031.00
507,030.72
(0.28)
559,565.00
559,553.58
(11.42)
Dedicated Uniform Construction Code Fees Offset
with Appropriations:
Uniform Construction Code Fees
A-10
88,000.00
209,601.00
121,601.00
Special Items of General Revenue Anticipated -
Shared Service Agreements:
Shared Services Agreement - Roosevelt Borough
Trash Collection
A-10
72,367.00
72,367.00
Shared Services Agreement - Roosevelt Borough
Trash Collection -Tipping Fees
A-10
35,456.00
30,050.25
(5,405.75)
107,823.00
102,417.25
(5,405.75)
Special Items of General Revenue -
Public and Private Revenues:
Recycling Tonnage Grant
A-18
7,023.44
7,023.44
Clean Communities Program
A-18
11,401.94
11,401.94
Stormwater Mapping Grant
A-18
25,000.00
25,000.00
ARP Firefighter Award
A-18
31,000.00
31,000.00
Body Annor Grant
A-18
1,252.04
1,252.04
Mercer County NJSCA Local Arts Program
A-18
8,000.00
8,000.00
$
83,677.42
$
83,677.42
$
- 10 -
ExhibitA-2
Page 2 of3
BOROUGH OF HIGHTSTOWN
CURRENT FUND
STATEMENT OF REVENUES REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31. 2023
Anticipated
Budget
Excess or
Ref.
Revenues
Realized
(Deficit)
Miscellaneous Revenues: (Continued)
Special Items of General Revenue -
Other Special Items:
Uniform Fire Safety Act
A-10
$
10,000.00
$
10,898.58
$
898 58
CATV - Franchise Fee
A-10
27,383.00
27,383 16
0.16
The Peddie School - Gift
A-10
23,000.00
24,000.00
1,000.00
Verizon Franchise Fee
A-10
27,868.00
27,868.13
0.13
ARP Revenue Loss
A-10
125,000.00
125,000.00
Hightstown Housing Authority -
Payment in Lieu of Taxes
A-10
30,000.00
33,076.39
3,076.39
243,251.00
248,226.26
4,975.26
Total Miscellaneous Revenues
A-1
$
1,4 72, 725 .42
$
1,737,785.86
$
265,060.44
Receipts from Delinquent Taxes
A-1, A-2
$
180,000.00
$
228,230.69
$
48,230.69
Amount to be Raised by Taxes for Support of
Municipal Budget
A-2
$
6,248,066.00
$
6,458,870.52
$
210,804.52
Budget Totals
$
8,798,791.42
$
9,322,887.07
$
524,095.65
Nonbudget Revenues
A-1, A-2
35,923.64
$
8, 798, 791.42
$
9,358,810.71
Ref.
A-3
The accompanying notes to financial statements are an integral part of the financial statements.
- 11 -
BOROUGH OF HIGHTSTOWN
CURRENT FUND
STATEMENT OF REVENUES REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31. 2023
Analysis of Realized Revenues:
Ref.
Allocation of Current Taxes:
Prepaid Taxes
A-6
Collected Current Year
A-6
Senior Citizens' and Veterans' Deductions
A-6
A-1
Allocated to:
School and County Taxes
A-14, A-15
Balance for Support of Municipal Budget
Appropriations
Add: Appropriation "Reserve for Uncollected Taxes"
A-3
Amount for Support of Municipal Budget
A-2
Receipts from Delinquent Taxes:
Delinquent Tax Collection
A-2, A-6
Tax Title Lien Collection
A-7
A-2
Analysis of Nonbudget Revenues:
Ref.
Notary
Duplicate Tax Bills
Prior Year Revenue
Owners List
Tax Collector Fees
Senior Citizens and Veterans Administration Fee
Police Accident Reports
Other Police Fees
Fire Code Other
Americana Lease
Construction Housing Fees Penalties
Miscellaneous
A-2, A-4
The accompanying notes to financial statements are
an integral part of the financial statements.
- 12 -
$
$
$
$
$
$
$
Exhibit A-2
Page 3 of3
Dec. 31, 2023
123,635.29
18,762,807.17
16,817.12
18,903,259.58
12,954,389.06
5,948,870.52
510,000.00
6,458,870.52
225,598.30
2,632.39
228,230.69
Dec. 31, 2023
98.42
325.00
2,112.91
100.00
80.00
325.59
1,094.00
2,675.00
8,961.00
12,539.54
2,420.00
5,192.18
35,923.64
Exhibit A-3
BOROUGH OF HIGHTSTOWN
Page I of 5
CURRENT FUND
STATEMENT OF EXPENDITURES REGULATORY BASIS
FOR THE YEAR ENDED PECEMBER 31. 2023
Unexpended
Budget After
Paid or
Reserve for
Balance
~
Modifications
~
!;ocumbr~rn~e
~
Cancelled
OpEBAJ!ONS - WITHIN "CAPS"
GENERAL GOVERNMENT
General Administration:
Salaries and Wages
$
124,750.00
$
124,750.00
$
122,381.45
$
2,368.55
$
Other Expenses
2,075.00
2,075.00
1,622.00
453.00
Mayor and Council:
Salaries and Wages
33,400.00
33,400.00
33,399.72
0.28
Other Expenses
3,250.00
3,250.00
2,129.25
1,120.75
Municipal Clerk:
Salaries and Wages
87,707.00
87,707.00
86,318.41
1,388.59
Other Expenses
15,900.00
15,900.00
5,397.74
$
160.00
10,342.26
Elections:
Other Expenses
5,500.00
5,500.00
5,500.00
Office Supplies and Paper Products
Other Expenses
15,500.00
15,500.00
10,550.67
362.15
4,587.18
Financial Administration:
Salaries and Wages
150,842.00
150,842.00
148,165.66
2,676.34
Other Expenses
15,693.79
15,693.79
10,897.18
1,600.00
3,196.61
Audit Services:
Other Expenses
16,000.00
16,000.00
16,000.00
.......
Grant Writing and Administration:
w
Other Expenses
10,000.00
5,000.00
383.40
4,616.60
(Data Processing/ Info Tech):
Salaries and Wages
5,150.00
5,150.00
5,150.00
Other Expenses
135,000.00
127,000.00
72,343.36
54,656.64
Collection of Taxes:
Salaries and Wages
96,872.00
96,872.00
91,892.35
4,979.65
Other Expenses
7,800.00
7,800.00
4,773.98
225.00
2,801.02
Assessment of Taxes:
Salaries and Wages
20,499.00
20,499.00
20,475. 71
23.29
Other Expenses
7,750.00
7,750.00
6,804.10
945.90
Interest on Tax Appeals:
Other Expenses
100.00
100.00
100.00
Legal Services and Costs:
Other Expenses
122,000.00
122,000.00
110,053.93
4,736.98
7,209.09
Engineering Services and Costs:
Other Expenses
42,600.00
56,600.00
56,600.00
Historical Commission:
Other Expenses
3,800.00
3,800.00
927.50
2,872.50
LAND USE
Municipal Land Use Law (N.J.S.A. 40:550-1)
Planning Board:
Salaries and Wages
30,065.00
30,065.00
29,831.62
233.38
Other Expenses
53,775.00
53,775.00
38,385.62
240.00
15,149.38
INSURANCE
Insurance Deductibles
3,000.00
3,000.00
(8,428.72)
11,428.72
Unemployment Compensation Insurance
5,000.00
5,000.00
5,000.00
General Liability
56,033.00
56,033.00
56,033.00
Workers Compensation Insurance
94,516.00
94,516.00
94,515.68
0.32
Employee Group Health Insurance
468,000.00
468,000.00
440,342.95
27,657.05
Health Benefit Waiver
20,000.00
20,000.00
20,000.00
The a~ompanying not.es to financial statements are an integral part of the financial statements
Exhibit A-3
BOROUGH OF HIGHTSTOWN
Page 2 of5
CURRENT FUND
STATEMENT OF EXPENDITURES REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31. 2.Q.ll
Unexpended
Budget After
Paid or
Reserve for
Balance
Budget
Modifications
Charged
Encumbrance
Reserved
Cancelled
OPERATIONS - WITHIN "CAPS" (Continued)
PUBLIC SAFETY FUNCTIONS
Police Department:
Salaries and Wages
$
1,657,004.00
$
1,657,004.00
$
1,624,676.52
$
32,327.48
$
Other Expenses
220,434.21
220,434.21
156,623.88
$
37,192.00
26,618.33
Office of Emergency Management:
Salaries and Wages
6,000.00
6,000.00
6,000.00
Other Expenses
4,000.00
2,000.00
2,000.00
Fire Department:
Other Expenses
Uniform Fire Safety Act (P.L. 1983, Ch. 383):
114,600.00
114,600.00
88,258.57
21,664.45
4,676.98
Salaries and Wages
14,000.00
14,000.00
10,764.51
3,235.49
Other Expenses
15,500.00
15,500.00
8,065.76
1,136.66
6,297.58
First Aid Organization:
Other Expenses
Municipal Prosecutor:
31,300.00
31,300.00
26,143.92
4,102.02
1,054.06
Other Expenses
14,400.00
14,400.00
14,400.00
PUBLIC WORKS FUNCTIONS
Streets and Road Maintenance:
....>.
Salaries and Wages
250,000.00
250,000.00
231,342.28
18,657.72
~
Other Expenses
97,300.00
88,300.00
48,964.75
16,813.31
22,521.94
Snow Removal:
Salaries and Wages
4,000.00
4,000.00
4,000.00
Other Expenses
7,000.00
7,000.00
7,000.00
Sanitation/Solid Waste Collection:
Salaries and Wages
68,000.00
68,000.00
59,745.11
8,254.89
Other Expenses
63,200.00
63,200.00
57,135.30
6,064.70
Public Buildings and Grounds:
Salaries and Wages
45,300.00
45,300.00
44,119.89
1,180.11
Other Expenses
172,825.00
181,825.00
168,624.13
13,024.93
175.94
Recycling:
Salaries and Wages
102,500.00
102,500.00
99,486.25
3,013.75
Other Expenses
164,358.00
164,358.00
154,479.19
9,878.81
Vehicle Maintenance:
Other Expenses
37,000.00
37,000.00
14,625.36
11,562.00
10,812.64
Community Condominium Services Act:
Other Expenses
44,000.00
44,000.00
28,000.00
16,000.00
HEALTH AND HUMAN SERVICES
Board of Health:
Salaries and Wages
69,969.00
69,969.00
65,430.26
4,538.74
Other Expenses
13,959.00
13,959.00
6,838.86
452.73
6,667.41
Environmental Commission (N.J.S.A. 40: 56A-1):
Other Expenses
5,770.00
5,770.00
4,585.00
400.00
785.00
PARK AND RECREATION
Maintenance of Parks:
Salaries and Wages
38,500.00
38,500.00
36,189.08
2,310.92
Other Expenses
5,200.00
5,200.00
3,010.54
2,100.00
89.46
Recreation & Open Space (Parks Commission):
Salaries and Wages
10,000.00
10,000.00
10,000.00
Other Expenses
23,675.00
23,675.00
5,108.70
18,566.30
Cultural Arts Commission
Other Expenses
4,000.00
4,000.00
262.57
3,737.43
The accompanying notes to financial statements are an integral part of the financial statements
Exhibit A-3
BOROUGH OF HIGHTSTOWN
Page 3 of5
CURRENT FUND
STATEMENT OF EXPENDITURES REGULATORY BASIS
FOR T!:!!i Yf;AR ENg§(;! DECEMBEB ;!!. 2Q£;!
Unexpended
Budget After
Paid or
Reserve for
Balance
~
Modifications
~
i;ncumbrgrn;;;~
~ ~
OPERATIONS - WITHIN "CAPS" (Continued)
OTHER COMMON OPERATING
FUNCTIONS (UNCLASSIFIED)
Celebration of Public Events:
Other Expenses
$
7,850.00
$
7,850.00
$
731.09
$
7,118.91
$
Accumulated Sick and Vacation:
Other Expenses
65,000.00
65,000.00
65,000.00
Postage and Shipping Charges:
Other Expenses
9,800.00
9,800.00
8,441.80
1,358.20
UTILITY EXPENSE AND BULK PURCHASES
Gasoline and Diesel Fuel
84,500.00
75,500.00
60,767.26
14,732.74
Electricity
40,000.00
40,000.00
25,467.50
$
1,480.22
13,052.28
Telephone
40,400.00
43,400.00
38,694.55
4,705.45
Natural Gas
18,000.00
18,000.00
11,199.27
6,800.73
Street Lighting
31,000.00
31,000.00
29,044.90
1,955.10
LANDFILL/SOLID WASTE DISPOSAL COSTS
Landfill Disposal Costs:
Other Expenses
240,000.00
240,000.00
170,122.54
27,672.37
42,205.09
.......
MUNICIPAL COURT
(Jt
Municipal Court:
Salaries and Wages
34,451.00
34,451.00
34,411.92
39.08
Other Expenses
195,000.00
195,000.00
164,826.57
30,173.43
Uniform Construction Code -
Appropriations Offset by Dedicated
Revenues (N.J.A.C. 5:23-4.17)
State Uniform Construction Code
(N.J.S.A. 52:270-120D et seq.):
Salaries and Wages
136,690.00
143,690.00
143,110.53
579.47
Other Expenses
8,025.00
8,025.00
2,802.00
5,223.00
Housing Code Enforcement:
Salaries and Wages
60,266.00
60,266.00
60,197.88
68.12
Other Expenses
3 400.00
3 400.00
1 169.98
----~230.02
Total Operations within "CAPS"
$
5,930,754.00
$
5,930,754.00
~ 5,207,414.78
~
184,353.54
_i
538,985.68
$
Total Operations Including Contingent -
within "CAPS"
$
5,930,754.00
$ 5,930,754.00
$
5,207.414.78
~
184,353.54
$
538,985.68
_i
Detail:
Salaries and Wages
$ 3,045,965.00
$
3,052,965.00
$
2,963,089.15
$
$
89,875.85
$
Other Expenses (Including Contingent)
$ 2,884,789.00
$ 2,877,789.00
$
2,244,325.63
$
184,353.54
$
449,109.83
$
Deferred Charges and Statutory
Expenditures - Municipal Within "CAPS"
$
DEFERRED CHARGES
Anticipated Deficit Water-Sewer Utility
$
50,000.00
$
50,000.00
$
50,000.00
$
The accompanying notes to financial statements are an integral part of the financial statements
...>.
O>
Deferred Charges and Statutory (Continued)
Expenditures - Municipal Within "CAPS" (Continued)
STATUTORY EXPENDITURES:
Public Employees' Retirement System of N.J.
Social Security System (O.A.S.J.)
Police and Firemens' Retirement System of N.J.
Defi.ned Contribution Benefit Plan
Total Deferred Charges and Statutory
Expenditures -
Municipal within "CAPS"
Total General Appropriations for Municipal Purposes within "CAPS"
OPERATIONS - EXCLUDED FROM "CAPS"
Public Employees' Retirement System of N.J.
Police and Firemens' Retirement System of N.J.
Length of Service Award Program (LOSAP):
Other Expenses
Employee Group Health Insurance
Workers Compensation Insurance
Recycling Tax (P.L. 2007, C.311)
Recycling- Other Expense
Total Other Operations - Excluded from "CAPS"
Shared Service Agreements
Dispatch Services East Windsor Township
Other Expenses
Senior Citizens - Program Service Center:
Other Expenses
Senior Citizens Transportation- East Windsor:
Other Expenses
Health Services-West Windsor Township:
Salaries and Wages
Other Expenses
Emergency Medical Services- Robbinsville:
Other Expenses
Landfill Disposal Costs (Roosevelt) :
Other Expenses
Mercer County EMS Dispatch
Other Expenses
Vehicle Maintenance Services:
Other Expenses
Manalapan - Animal Control
Other Expenses
Total Shared Service Agreements
BOROUGH OF HIGHTSTOWN
CURRENT FUND
STATEMENT OF EXPENDITURES REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31. 2.023
fu!..dgfil
$
191,858.00
$
140,000.00
423,648.00
5,ooo.oo
$
810,506.00
~
$
6,741,260.00
-1
$
49,210.00
$
75,162.00
30,000.00
22,000.00
3,653.00
6,500.00
8 142.00
~
194,667.00
-1
$
202,067.00
$
43,952.00
2,180.00
31,176.00
23,959.00
40,000.00
35,456 .00
4,810.00
19,000.00
18 000.00
$ -
420,600.00
$
Budget After
Modifications
191,858.00
140,000.00
423,648.00
5 ODO.DO
810,506.00
6,741,260.00
49,210.00
75,162.00
30,000.00
22,000.00
3,653.00
6,500.00
8 142.00
194,667.00
202,067.00
43,952.00
2,180.00
31,176.00
23,959.00
40,000.00
35,456 .00
4,810.00
19,000.00
18 000.00
420,600.00
$
$
$
$
$
$
$
Paid or
~
191,858.00
123,183.25
423,648.00
2 970.28
791,659.53
5,999,074.31
49,210.00
75,162.00
14,300.00
22,000.00
3,653 .00
5,002.29
8 142.00
177,469.29
202,066.38
6,761.90
31,176.00
23,959.00
40,000.00
28,059.22
4,810.00
10,246.20
18 000.00
365,078.70
$
$
$
$
$
The accumpany1ng notes to financial statements are an integral part of the financial statements
Reserve for
Encumbrance
184,353.54
396.33
396.33
2,043.27
1,160.27
3,203.54
$
$
$
$
$
$
$
R=rYfil!
16,816.75
2,029.72
18 846.47
557,832. 15
15,700.00
1,101.38
1§,801.38
0.62
37,190.10
2,180.00
5,353.51
7,593.53
~2,317.76
-1
$
$
$
$
Unexpended
Balance
~
ExhibitA-3
Page 4 of 5
__,.
-..J
Public and Private Programs Offset by Revenues
Clean Communities Program
Body Armor Replacement Grant
Recycling Tonnage Grant
ARP Firefighter 2022 Award
Stormwater Mapping Grant
Mercer County NJSCA Local Arts Program
Total Public and Private Programs offset by Revenues
Total Operations - Excluded from "CAPS"
Detail:
Salaries and Wages
Other Expenses
Capital Improvements -
Excluded from "CAPS"
Capital Improvement Fund
Total Capital Improvements Excluded from "CAPS"
Municipal Debt Service -
Excluded from "CAPS"
Payment of Bond Principal
Payment of Bond Anticipation Notes & Capital Notes
Interest on Bonds
Interest on Notes
Dam Restoration Loan
Total Municipal Debt Service Excluded from "CAPS"
Deferred Charges - Municipal - Excluded
from "CAPS"
Transferred to Board of Education for Use of
Local Schools (N .J.S.A. 40:48-17.l & 17.3)
Total General Appropriations for Municipal Purposes -
Excluded from "CAPS"
Total General Appropriations - Excluded from "CAPS"
Subtotal General Appropriations
Reserve for Uncollected Taxes
Total General Appropriations
Cash Disbursed
Transferred to Grant Fund
Transferred to Payroll Fund
Reserve for Uncollected Taxes
fu:f,_
A-4
A
A-8
A-2
BOROUGH OF HIGHTSTOWN
CURRENT FUND
STATEMENT OF EXPENDITURES REGULATORY BASIS
FOR T!:l!i ):'.!;AR E!\lO!iQ DECEMBER J1, 2Q2J
.!ll!®.et
$
11,401.94
1,252.04
7,023.44
31,000.00
25,000.00
8 ODO.OD
$
83 677.42
$
698,944.42
$
39,176.00
$
659,768.42
~
30,000.00
$
30,000.00
$
480,000.00
76,750.00
127,200.00
84,715.00
9,926.00
$
778,591.00
_1__ 39,996.00
$
1,547,531.42
$
1,547,531.42
$ 8,288, 791.42
510,000.00
$
8, 798,791.42
Budget After
Modifications
$
11,401.94
1,252.04
7,023.44
31,000.00
25,000.00
8 ODO.DO
$
83 677.42
$
698,944.42
$
39,176.00
659,768.42
~
30,000.00
$
30,000.00
$
480,000.00
76,750.00
127,200.00
84,715.00
9 926.00
$
72~,591.00
$
39,996.00
$ 1,547,531.42
$
1,547,531.42
$
8,288,791.42
510,000.00
$ 8, 798,791.42
A-2
Paid or
Qla.rg.eQ
$
11,401.94
1,252.04
7,023.44
31,000.00
25,000.00
8 ODO.OD
$
83 677.42
$
626,225.41
$
39,176.00
$
587,049.41
$
30,000.00
$
30,000.00
$
480,000.00
76,750.00
127,200.00
84,713.72
9 925.47
_$ __ 778,589.19
$
39,996.00
$ 1,474,810.60
$ 1,474,810.60
$
7,473,884.91
510,000.00
$
7,983,884.91
$
7 ,387 ,237 .21
83,677.42
2,970.28
510,000.00
$ 7,983,884.91
Reserve for
Encumbrance
$
3 599.87
$
$
3,599.87
$
$
3,599.87
$
3,599.87
$
187,953.41
$
187,953.41
A
The accompanying notes to financial statements are an integral part of the financial statements
Exhibit A-3
Page 5 ofS
Unexpended
Balance
~ ~
$
$
$
-1
$
69,119.14
-1
$
$
$
69,119.14
$
-1
$
-1
$
$
(0.00)
1.28
0.00
0.53
$
(0.00)
$
1.81
$
-1
$
69,119.14
~
1.81
~
69,119.14
~
1.81
$
626,951.29
$
1.81
~
626,951.29
-1
1.81
A
ASSETS
Animal Control Fund:
Cash and Investments
Interfund - Current Fund
Other Trust Funds:
Cash and Investments
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
TRUST FUND
COMPARATIVE BALANCE SHEET
REGULATORY BASIS
Balance
Ref.
Dec. 31, 2023
B-1
$
1,733.88
A
659.32
$
2,393.20
B-1
$
586,137.17
Redevelopment Circulation Study
B
18,970.55
Interfunds:
Current Fund
B-6
233,765.74
Payroll Fund
B-10
11,491.66
$
850,365.12
Payroll Fund
Cash and Investments
B-1
$
53,264.97
Due From NJ GIT
B-1
38,218.14
Interfunds - Current Fund
B-10
7,970.28
$
99,453.39
Unemployment Trust Fund
Cash and Investments
B-1
$
31,951.62
Interfunds:
Current Fund
A
10,000.00
Water-Sewer Utility Operating Fund
D
4,000.00
Payroll Fund
B
36,042.96
$
81,994.58
Escrow Trust Funds:
Cash and Investments
B-1
$
78,678.94
Length of Service Awards Program Fund:
(LOSAP) - Unaudited:
Funds Held by Trustee
B-14
$
821,380.60
Due from Borough
B-14
20,250.00
$
841,630.60
$ 1,954,515.83
$
$
$
$
$
$
$
$
$
$
$
$
Balance
Exhibit B
Page I of2
Dec. 31, 2022
889.03
889.03
548,115.00
18,970.55
233,765.74
11,491.66
812,342.95
78,331.80
78,331.80
32,664.84
5,000.00
2,000.00
28,126.51
67,791.35
87,705.76
742,008.11
742,008.11
1, 789 ,069.00
The accompanying notes to financial statements are an integral part of the financial statements.
- 18 -
Exhibit B
Page 2 of2
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
TRUST FUND
COMPARATIVE BALANCE SHEET
REGULATORY BASIS
LIABILITIES, RESERVES
Balance
Balance
AND FUND BALANCE
Ref.
Dec. 31, 2023
Dec. 31, 2022
Animal Control Fund:
Due to N.J. State Department of Health
B-2
$
30.20
$
344.60
Interfund - Current Fund
A
231.68
Reserve for Expenditures
B-3
2,363.00
312.75
$
2,393.20
$
889.03
Other Trust Funds:
Interfunds:
Grant Fund
B
$
27,842.58
$
27,842.58
Water-Sewer Operating Fund
D
16,307.42
16,307.42
Reserve for:
Redemption of Tax Title Liens
B-4
28,328.38
16,560.37
Regional Contribution Agreement -
Manalapan
B-5
145,585.46
141,418.36
Law Enforcement Fund
B-7
53,155.33
51,633.82
Public Defender
B-8
23,079.97
21,734.47
Miscellaneous Trust Funds
B-11
523,426.44
518,399.36
Housing Trust
B-13
32,639.54
18,446.57
$
850,365.12
$
812,342.95
Payroll Fund
Payroll Deductions Payable
B-10
$
51,918.77
$
38,713.63
Interfunds:
Unemployment Trust Fund
B
36,042.96
28,126.51
Other Trust Fund
B
11,491.66
11,491.66
$
99,453.39
$
78,331.80
Unemployment Trust Fund:
Reserve for Unemployment
B-9
$
81,994.58
$
67,791.35
Escrow Trust Funds:
Escrow Fees
B-12
$
78,678.94
$
87,705.76
Length of Service Award Program
Fund (LOSAP) - Unaudited
Reserve for LOSAP
B-14
$
841,630.60
$
742,008.11
$ 1,954,515.83
$ 1,789,069.00
The accompanying notes to financial statements are an integral part of the financial statements.
- 19 -
ASSETS
Cash - Treasurer
Grants Receivable
Interfunds:
Current Fund
Water-Sewer Utility Capital Fund
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GENERAL CAPITAL FUND
COMPARATIVE BALANCE SHEET
REGULATORY BASIS
Balance
Ref.
Dec. 31, 2023
C-2
$
3,606.46
C-6
1,995,613.82
C-2
2,487 ,366. 54
C-11
297,071.10
Deferred Charges to Future Taxation:
Funded
C-4
3,340,216.53
Unfunded
C-5
5,581,909.97
$ 13,705,784.42
LIABILITIES, RESERVES
AND FUND BALANCE
General Serial Bonds
C-12
$
3,280,000.00
Loan Payable
C-13
60,216.53
Bond Anticipation Notes
C-10
3,671,000.00
Reserve for Encumbrances
C-14
891,229.27
Interfund - Water-Sewer Utility Operating Fund
C-2
400,000.00
Improvement Authorizations:
Funded
C-8
1,296,344.92
Unfunded
C-8
1,970,652.66
Capital Improvement Fund
C-9
220,922.50
Reserve for Grants Receivable
C-6
127,959.87
Various Reserves
C-7
1,777,646.99
Fund Balance
C-1
9,811.68
$ 13, 705, 784.42
Bonds and Notes Authorized but Not Issued
$
1,910,909.97
Exhibit C
Balance
Dec. 31. 2022
$
14,388.44
1,756,094.24
424,008.94
297,071.10
3,828,808.57
5,063,692.09
$ 11,384,063.38
$
3,760,000.00
68,808.57
2,663,000.00
240,350.87
1,061,830.49
2,934,048.94
214,522.50
236,121.99
204,425.52
954.50
$ 11,384,063.38
$
2,400,692.09
The accompanying notes to financial statements are an integral part of the financial statements.
- 20 -
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GENERAL CAPITAL FUND
STATEMENT OF FUND BALANCE
REGULATORY BASIS
Ref.
Balance, December 31, 2022
c
Increased by:
Premium on Sale of Bond Anticipation Notes
Balance, December 31, 2023
c
$
954.50
8,857.20
$
9,811.70
The accompanying notes to financial statements are an integral part of the
financial statements.
- 21 -
Exhibit C-1
ASSETS
Operating Fund:
Cash and Investments
Interfunds:
Grant Fund
Other Trust Fund
Water-Sewer Utility Capital Fund
General Capital Fund
Receivables with Full Reserves:
Consumer Accounts Receivable
Deficit in Operations
Total Operating Fund
Capital Fund:
Cash
Grant Receivable - FEMA
Fixed Capital
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY FUND
COMPARATIVE BALANCE SHEET
REGULATORY BASIS
Balance
Ref.
Dec. 31, 2023
D-5
$
278,304.41
D-5
B
16,307.42
D-15
95,109.61
D-5
400,000.00
D-8
121,402.84
D-1
595.27
$
911,719.55
D-10
$
452,206.06
D-12
74,642.56
D-13
15,336,516.65
Fixed Capital Authorized and Uncompleted
D-14
16,952,500.00
Deferred Charge
D-20
63,601.50
Due From:
NJDEP
D-23
16,235.00
NJI Bank
D-23
8,117.00
Total Capital Fund
$ 32,903,818.77
$ 33,815,538.32
$
$
$
ExhibitD
Page 1 of2
Balance
Dec. 31. 2022
453,543.28
130,893.00
16,307.42
108,657.11
151,562.32
860,963.13
444,277.89
474,873.76
15,336,516.65
13,070,000.00
$ 29,325,668.30
$ 30,186,631.43
The accompanying notes to financial statements are an integral part of the financial statements.
- 22 -
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY FUND
COMPARATIVE BALANCE SHEET
REGULATORY BASIS
LIABILITIES, RESERVES
Balance
AND FUND BALANCE
Ref.
Dec. 31. 2023
Operating Fund:
Liabilities:
Appropriation Reserves
D-4/D-7
$
175,842.71
Reserve for Encumbrances
D-4
101,133.34
Interfu nds:
Current Fund
D-5
421,889.92
Other Trust Fund - Unemployment Fund
D-7
4,000.00
Deposits
D-5
500.00
Consumer Overpayments
D-8
7,221.81
Accrued Interest on Bonds, Loans and Notes
D-9
40,270.51
Accounts Payable
D-7
14,437.00
$
765,295.29
Reserve for Receivables
121,402.84
Fund Balance
D-1
25,021.42
Total Operating Fund
$
911,719.55
Capital Fund:
Serial Bonds Payable
D-16
$
1,025,000.00
Loans Payable
D-17
3,536,895.38
Bond Anticipation Notes
D-18
1,169,000.00
Interfu nds:
Grant Fund
D-11
4,755.80
Water-Sewer Utility Operating Fund
D-15
95,109.61
General Capital Fund
C-11
297,071.10
Current Fund
D-5
153,946.87
Improvement Authorization - Funded
D-20
105,951.51
Improvement Authorization - Unfunded
D-20
6,470,041.34
Down Payments on Improvements
D
200.00
Reserve for Encumbrances
D-21
109,745.00
Reserve for Debt Service
D-19
4,631.21
Reserve for Amortization
D-22
17,967,012.05
Deferred Reserve for Amortization
D-23
1,776,845.44
Reserve for Grants
D-10
74,642.56
Reserve for NJI-Bank Advance
D
82,272.23
Capital Improvement Fund
D-24
30,692.95
Fund Balance
D-2
5.72
Total Capital Fund
$ 32,903,818. 77
$ 33,815,538.32
Bonds & Notes Authorized but Not Issued
D-25
$
6,045,220.00
$
$
$
$
Exhibit D
Page 2 of2
Balance
Dec. 31. 2022
81,141.04
193,109.96
174,431.13
2,000.00
500.00
7,731.23
25,466.03
14,437.00
484,379.39
151,562.32
225,021.42
860,963.13
1,200,000.00
3,547,335.09
1,435,000.00
108,657.11
297,071.10
952.97
418,229.75
2,976,292.15
200.00
185,920.68
4,631.21
17,504,332.34
1,061,077.24
474,873.76
82,272.23
28,816.95
5.72
$ 29,325,668.30
$ 30,186,631.43
$
2,918,477.00
The accompanying notes to financial statements are an integral part of the financial statements.
- 23 -
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY OPERATING FUND
COMPARATIVE STATEMENT OF OPERATIONS AND
CHANGE IN OPERATING FUND BALANCE
REGULATORY BASIS
Revenue and Other Income Realized
Ref.
Year 2023
Fund Balance Utilized
D-3
$
200,000.00
Water-Sewer Rents
D-3
2,843,739.19
Miscellaneous
D-3
80,954.49
ARP Loss of Revenue
D-3
49,269.02
Anticipated Deficit
D-3
50,000.00
Other Credits to Income -
Unexpended Balance of Appropriation Reserves
D-7
113,195.43
Total Income
$ 3,337,158.13
Expenditures
Budget:
Operating
$ 2,559,017.00
Capital Appropriations
18,776.00
Debt Service
596,590.00
Deferred Charges and Statutory Expenditures
155,500.00
Refund of Prior Year Revenue
7,870.40
Total Expenditures
D-4
$ 3,337,753.40
Regulatory/(Deficit) to Balance Sheet/
Excess to Fund Balance
$
(595.272
Fund Balance, January 1
D
225,021.42
$
225,021.42
Less: Utilized as Anticipated Revenue - Utility
D-3
200,000.00
Fund Balance, December 31
D
$
25,021.42
Exhibit D-1
Year 2022
$
182,000.00
2,710,830.62
131,806.67
130,893.00
66,586.83
$ 3,222,117.12
$ 2,299,569.00
32,000.00
510,785.90
155,500.00
$ 2,997,854.90
$
224,262.22
182,759.20
$
407,021.42
182,000.00
$
225,021.42
The accompanying notes to financial statements are an integral part of the financial statements.
- 24-
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY CAPITAL FUND
STATEMENT OF CAPITAL FUND BALANCE
REGULATORY BASIS
Balance, December 31, 2022
D
$
Balance, December 31, 2023
D
$
5.72
5.72
The accompanying notes to financial statements are an integral part
of the financial statements.
- 25 -
Exhibit D-2
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY OPERATING FUND
STATEMENT OF REVENUES
REGULATORY BASIS
Surplus Anticipated
Water-Sewer Rents
Miscellaneous
ARP Loss of Revenue
Increased Rents
Anticipated Deficit
Ref.
D-1
D-1,3
D-1,3
D-1,3
D-1,3
D-1,3
Anticipated
Realized
$
200,000.00
$
200,000.00
2, 700,000.00
2,700,000.00
25,000.00
80,954.49
49,269.02
49,269.02
305,613.98
143,739.19
50,000.00
50,000.00
$ 3,329,883.00
$ 3,223,962.70
Analysis of Realized Revenues
Water-Sewer Rents:
2023 Collections
Consumer Overpayments - Applied
Transfer to Consumer Overpayments
D-6
D-6
D-6
Analysis of Miscellaneous Revenues
Interest Earned on Water-Sewer Capital
Interest on Investments
Interest on Delinquent Charges
Sewer Connection Fees
Fire Service
Manual Meter Reading
Sale of Meters
Refund of Prior Year Expenditure
Miscellaneous Revenue
D-3
Exhibit D-3
Excess or
(Deficit)
$
55,954.49
(161,874.79)
$ (105,920.30)
$ 2,843,229. 77
1,514.89
(1,005.47)
$ 2,843,739.19
$
16,851.29
20,665.56
15,302.78
55.00
21,585.29
826.67
305.00
3,249.35
2,113.55
$
80,954.49
The accompanying notes to financial statements are an integral part of the financial statements.
- 26 -
I\.)
--J
Operating:
Salaries and Wages
Other Expenses
Capital Improvements:
Capital Improvement Fund
Debt Service:
Payment of Bond Principal
Payment of Anticipation Notes
Interest on Bonds
Interest on Bond Anticipation Notes
Water and Waste Water Supply Loan
Statutory Expenditures:
Public Employees' Retirement System
Social Security System (O.A.S.I.)
Unemployment Insurance
Disbursements
Accrued Interest on Bond,Loans and Notes
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY OPERATING FUND
STATEMENT OF EXPENDITURES
REGULATORY BASIS
Ap12ropriations
Budget After
Paid or
Budget
Modification
Charoed
$
973,073 .00
$ 1,043,073.00
$1,012,995.36
1,585,944.00
1,515,944.00
1,271,045.59
18,776.00
18,776.00
18,776.00
175,000.00
175,000.00
175,000.00
6,324.00
6,324.00
6,324.00
36,545.00
36,545.00
36,545.00
56,740.00
56,740.00
56,740.00
321,981.00
321,981.00
321,981.00
79,500.00
79,500.00
79,500.00
74,000.00
74,000.00
74,000.00
2,000.00
2 000.00
$ 3,329,883.00
$ 3,329,883.00
$ 3,052,_906.95 -
Ref
D-5
D-9
D-1
$ 2,912,116.01
140,790.94
$ 3,052,906.95
Expended
Encumbered
$101,133.34
- $101,133.34
D
The accompanying notes to financial statements are an integral part of the financial statements.
ExhibitD-4
Unexpended
Balance
Reserved
Canceled
$
30,077.64
143,765.07
2,000.00
$ _
_ 1_75,842. 71
$
D
D-1
General Fixed Assets:
Land
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GENERAL FIXED ASSETS ACCOUNT GROUP
STATUTORY BASIS
STATEMENT OF GENERAL FIXED ASSETS
REGULATORY BASIS
2023
$
90,835.99
Buildings and Improvements
1,175,452.55
Equipment
1,885,459.82
Motor Vehicles and Equipment
3,997,143.51
$ 7,148,891.87
Investment in General Fixed Assets
$ 7,148,891.87
Exhibit E
2022
$
90,835.99
1,175,452.55
1,885,459.82
3,997,143.51
$
7,148,891.87
$
7,148,891.87
The accompanying notes to financial statements are an integral part of the financial statements.
- 28 -
NOTES TO FINANCIAL STATEMENTS
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reportina Entity
The Borough of Hightstown is located in the eastern portion of Mercer County, New Jersey, 16
miles west of Trenton and approximately 51 miles south of New York City and 48 miles North
of Philadelphia. The population, according to the 2020 census, is 5,900.
The Borough of Hightstown operates under the Borough form of government. The governing
body consists of a Mayor and six Council members. All action is passed by a majority or, when
required, a 2/3 vote of Council. The Mayor votes only in the event of a tie. The Mayor has
veto power over all ordinances passed by the Borough Council. This veto can be overridden by
a two-thirds (2/3) vote of the Council.
The financial statements of the Borough of Hightstown, County of Mercer, New Jersey (the
"Borough"), include every board, body, office or commission supported and maintained
wholly or in part by funds appropriated by the Borough as required by N.J.S. 40A:5-5. The
financial statements of the Borough do not include the operations of the Board of Education,
First Aid organization or Fire Company which are subject to a separate audit and
accounting.
The Governmental Accounting Standards Board ("GASB") Statement 14 established criteria
to be used to determine which component units should be included in the financial
statements of the oversight entity. The criteria differ from the Division of Local Government
Services, Department of Community Affairs, State of New Jersey (the "Division")
requirements where certain boards, commissions, and agencies of the Borough, by statute
or other directive, report separately on their financial statements.
The Borough had no
component units during 2023.
B. Descriptions of Funds
The GASB is the recognized standard-setting body for establishing governmental generally
accepted accounting and financial reporting principles. GASB Codification establishes seven
major fund types and two account groups to be used by governmental units when reporting
financial position and results of operations in accordance with generally accepted accounting
principles ("GAAP").
The accounting policies of the Borough conform to the accounting principles applicable to
municipalities which have been prescribed by 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 Borough accounts for its financial
transactions through the following separate funds which differs from the fund structure
required by GAAP:
Current Fund -
revenues and expenditures for governmental operations of a general
nature, including Federal and State grant funds.
Animal Control Trust Fund - animal license revenues and expenditures.
- 29 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Descriptions of Funds (Continued)
Other Trust Fund - sundry deposits held for satisfactory completion of specific work;
receipts and disbursements for dedicated purposes.
General Capital Fund -
resources, including Federal and State Grants in aid of
construction, and expenditures for the acquisition of general capital facilities, other than
those acquired through the Current Fund, including the status of bonds and notes
authorized for said purposes.
Water-Sewer Utility Operating Fund - revenues and expenditures necessary to operate
municipally-owned water supply and sewer collection systems from user fees.
Water-Sewer Utilitv Capital Fund - resources, including Federal and State Grants in aid
of construction, and expenditures for the acquisition of water-sewer capital facilities, other
than those acquired through the Water-Sewer Utility Operating Fund, including the status of
bonds and notes authorized for said purposes.
Capital (General Fixed) Assets Account Group - used to account for fixed capital assets
used in general government operations.
C. Basis of Accounting
The accounting principles and practices prescribed for municipalities by the Division differ in
certain respects from GAAP applicable to local governmental units.
The more significant
differences are as follows:
A modified accrual basis of accounting is followed with minor exceptions.
Propertv Taxes and Other Revenues - property taxes and other revenues are recognized
on a cash basis.
Receivables for property taxes and other items that are susceptible to
accrual are recorded with offsetting reserves on the balance sheet of the Borough's Current
Fund.
GAAP requires such revenue to be recognized in the accounting period when they
become susceptible to accrual, reduced by an allowance for doubtful accounts.
Grant Revenues - Federal and State grants, entitlement or shared revenues received for
purposes normally financed through the Current Fund are recognized when anticipated in
the Borough's budget.
Federal and State grant revenues received for purposes of capital
projects financed by capital ordinances are recognized when received. GAAP requires such
revenues to be recognized in the accounting period when they become susceptible to
accrual.
Expenditures - unexpended or uncommitted appropriations, at December 31, are reported
as expenditures through the establishment of appropriation reserves unless cancelled by the
governing body. GAAP requires expenditures to be recognized in the accounting period in
which the fund liability is incurred, if measurable, except for unmatured interest on general
long-term debt, which should be recognized when due.
- 30 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Basis of Accountina
(Continued)
Encumbrances - contractual orders at December 31, are reported as expenditures through
the establishment of a reserve for encumbrances.
Encumbrances do not constitute
expenditures under GAAP.
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
do not exist under GAAP.
Deferred Charges - the regulatory basis of accounting utilized by the Borough requires
that certain expenditures be deferred, and raised as items of appropriation in budgets of
succeeding
years.
These
deferred
charges
include the
two
general
categories,
overexpenditures
and
emergency
appropriations.
Overexpenditures
occur
when
expenditures recorded as "paid or charged" exceed available appropriation balances.
Emergency appropriations occur when, subsequent to the adoption of a balanced budget,
the governing body authorizes the establishment of additional appropriations based on
unforeseen
circumstances
or for other special
purposes
as
defined
by statute.
Overexpenditures and emergency appropriations are deducted from total expenditures in
the calculation of operating results and are established as assets for Deferred Charges on
the respective balance sheets.
GAAP does not permit the deferral of overexpenditures to
succeeding budgets.
In addition, GAAP does not recognize expenditures based on the
authorization of an
appropriation.
Instead, the authorization of special
purpose
expenditures, such as the preparation of tax maps or revaluation of assessable real
property, would represent the designation of fund balance. The status of deferred charges
at December 31, 2023 is set forth in Note 4.
Deferred Charges to Future Taxation Funded and Unfunded
Upon the authorization of capital projects, the Borough establishes deferred charges for the
cost 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 cost of capital projects.
According to the New Jersey Statutes
Annotated 40A:2-4, the Borough may levy taxes on all taxable property within the local unit
to repay the debt. Annually, the Borough raises the debt requirements for the particular
year in the current budget. As funds are raised, the deferred charges are reduced.
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 financial resources be
recorded as expenditure in the Current Fund and the remaining obligations be recorded as a
long-term obligation. The expenditures in the Water-Sewer Utility Operating Fund would be
on a full accrual basis. The compensated absence liability at December 31, 2023 is set forth
in Note 4.
- 31 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
C. Basis of Accounting
(Continued)
Property Acquired for Taxes - is recorded in the Current Fund at the assessed valuation
when such property was acquired and fully reserved.
GAAP requires such property to be
recorded in the general fixed assets account group at its market value.
Sale of Municipal Assets - Cash proceeds from the sale of Borough owned property may
be reserved until utilized as an item of anticipated revenue in a subsequent year budget.
Year end balances of such proceeds are reported as a cash liability in the Current Fund.
GAAP requires that revenue be recognized in the accounting period that the terms of sales
contracts become legally enforceable.
Interfunds - advances in the Current Fund are reported as interfund receivables with
offsetting reserves which are created by charges to operations. Income is recognized in the
year the receivables are liquidated.
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 individual items are purchased. The costs of inventories are not
included on the various balance sheets.
GAAP requires that the cost of inventories be
reflected on the balance sheet until utilized and expended.
Capital (General Fixed) Assets - In accordance with the Technical Accounting Directive
No. 85-2, Accounting for Governmental Fixed Assets, as promulgated by the Division, which
differs in certain respects from GAAP, the Borough has developed a fixed assets accounting
and reporting system based on an inspection and historic cost analysis.
Fixed assets used in governmental operations (general fixed assets) are required to be
accounted for in the General Fixed Assets Account Group. Public domain ("infrastructure")
general fixed assets consisting of certain improvements other than buildings, such as roads,
bridges, curbs and gutters, streets and sidewalks and drainage systems are not capitalized.
All fixed assets are valued at historical cost or estimated historical cost if actual historical
cost is not available.
Depreciation is not recorded in the General Fixed Assets Account Group.
Expenditures for construction in progress are required to be recorded in the Capital Funds
until such time as the construction is completed and put into operation.
Fixed assets acquired through grants in aid or contributed capital have not been accounted
for separately.
- 32 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
C. Basis of Accounting
(Continued)
Utility Fixed Assets - Accounting for utility fund "fixed capital" remains unchanged under
the Requirements of Technical Accounting Directive No. 85-2.
Property and equipment purchased by the Water-Sewer Utility Fund are recorded in the
capital account at cost and are adjusted for disposition and abandonment. The amounts
shown do not purport to represent reproduction costs or current value. Contributions in aid
of construction are not capitalized.
The balances in the Reserve for Amortization and
Deferred Reserve for Amortization accounts in the utility capital fund represent charges to
operations for the costs of acquisitions of property, equipment and improvements.
Property and equipment of the Water-Sewer Utility Fund are not depreciated.
Principal
payments for Water-Sewer Utility debt are recorded as expenditures in the Water-Sewer
Utility Statement of Operations.
Volunteer Length of Service Award Plan (LOSAPl -
The Borough has established a
volunteer Length of Service Award Plan ("LOSAP")("Plan") to ensure retention of the Borough's
volunteer fire department. The Plan shall be construed under the laws of the State of New
Jersey and is established with the intent that it meets the requirements of a "Length of service
award plan under section 457(e)ll of the Internal Revenue Code".
The LOSAP financial
statements have not been nor are they required to be audited.
D.
Total Columns on Combined Balance Sheet for all Funds -
Supplementary and
Statistical Data - 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 generally
accepted accounting principles. Neither is such data comparable to a consolidation. Interfund
eliminations have not been made in the aggregation of this data.
E. Financial Statements
The GASB Codification requires the financial statements of a governmental unit to be
presented in accordance with GAAP.
The Borough presents its financial statements in
accordance with an other comprehensive basis of accounting as promulgated by the Division
which differs from the financial statements required by GAAP.
In addition, the Division
requires the financial statements to be referenced to the supplementary schedules.
This
practice differs from GAAP.
F. 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 Borough and
approved by the Division in accordance with applicable statutes.
- 33 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. Other Accounting Standards
The Borough is currently reviewing the following for applicability and potential impact on the
financial statements:
•
GASB Statement 99. Omnibus 2022. The objectives of this Statement are to enhance
comparability in accounting and financial reporting and to improve the consistency of
authoritative literature by addressing (1) practice issues that have been identified
during implementation and application of certain GASS Statements and (2) accounting
and financial reporting for financial guarantees. The practice issues addressed by this
Statement are as follows:
o
Classification and reporting of derivative instruments within the scope of
Statement
No.
53,
Accounting and Financial Reporting for Derivative
Instruments.
o
Clarification of provisions in Statement No. 87, Leases.
o
Clarification of provisions in Statement No. 94, Public-Private and Public-Public
Partnerships and Availability Payment Arrangements.
o
Clarification of provisions in Statement No. 96, Subscription-Based Information
Technology Arrangements
o
Extension of the period during which the London Interbank Offered Rate
(LIBOR) is considered an appropriate benchmark interest rate for ..
o
Accounting for the distribution benefits (SNAP)
o
Disclosures related to nonmonetary transactions.
o
Terminology updates related to certain provisions of Statement No. 63, Financial
Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and
Net Position.
o
Terminology used in Statement 53 to refer to resource flows statements.
Effective Date: The requirements of this Statement that are effective as follows:
o
The requirements related to extension of the use of LIBOR, accounting for SNAP
distributions, disclosures of nonmonetary transactions, pledges of future
revenues by pledging governments, clarification of certain provisions in
Statement 34, as amended, and terminology updates related to Statement 53
and Statement 63 are effective upon issuance.
o
The requirements related to leases, PPPSs, and SBITAs are effective for fiscal
years beginning after June 15, 2022 and all reporting periods thereafter.
- 34 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. Other Accounting Standards {Continued)
•
GASB Statement 99. (Continued)
o
The requirements related to financial guarantees and the classification and
reporting of derivative instruments within the scope of Statement 53 are
effective for fiscal years beginning after June 15, 2023 and all reporting periods
thereafter.
o
The Borough does not expect this Statement to impact its financial statements.
•
GASB Statement 100. Accounting Changes and Error Corrections - An Amendment of
GASB Statement No. 62.
The primary objective of this Statement is to enhance
accounting and financial reporting requirements for accounting changes and error
corrections to provide more understandable, reliable, relevant, consistent, and
comparable information for making decisions or assessing accountability.
This Statement defines accounting changes as changes in accounting principles,
changes in accounting estimates, and changes to or within the financial reporting entity
and describes the transactions or other events that constitute those changes.
Effective Date: The requirements of this Statement are effective for accounting changes
and error corrections made in fiscal years beginning after June 15, 2023 and all
reporting periods thereafter. Earlier application is encouraged.
The Borough does not expect this Statement to impact its financial statements.
•
GASB Statement 101. Compensated Absences. The objective of this Statement is to
better meet the information needs of financial statement users by updating the
recognition and measurement guidance for compensated absences.
The objective is
achieved by aligning the recognition and measurement guidance under a unified model
and by amending certain previously required disclosures.
Effective Date: The requirements of this Statement are effective for fiscal years
beginning after December 15, 2023 and all reporting periods thereafter.
Earlier
application is encouraged.
The Borough does not expect this Statement to impact its financial statements.
- 35 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. Other Accounting Standards (Continued)
•
GASB Statement No. 102. Certain Risk Disclosures. State and local governments face
a variety of risks that could negatively affect the level of service they provide or their
ability to meet obligations as they come due. Although governments are required to
disclose information about their exposure to some of those risks, essential information
about other risks that are prevalent among state and local governments is not routinely
disclosed because it is not explicitly required.
The objective of this Statement is to
provide users of government financial statements with essential information about risks
related to a government's vulnerabilities due to certain concentrations or constraints.
Effective Date: The requirements of this Statement are effective for fiscal years
beginning after June 15, 2024, and all reporting periods thereafter. Earlier application
is encouraged.
•
GASB Statement No. 103. Financial Reporting Model Improvements. The objective of
this Statement is to improve key components of the financial reporting model to
enhance its effectiveness in providing information that is essential for decision making
and assessing a government's accountability. This Statement also addresses certain
application issues -
Management's Discussion and Analysis, Unusual or Infrequent
Items, Presentation of the Proprietary Fund Statement of Revenues, Expenses and
Changes in Fund Net Position, Major Component Unit Information, and Budgetary
Comparison Information.
Effective Date: The requirements of this Statement are effective for fiscal years
beginning after June 15, 2025, and all reporting periods thereafter. Earlier application
is encouraged.
H. Subsequent Event
Management has reviewed and evaluated all events and transactions from December 31, 2023
through April 29, 2025, the date that the financial statements are issued for possible disclosure
and recognition in the financial statements, and no items have come to the attention of the
Borough that would require disclosure.
- 36 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 2. CASH AND CASH EQUIVALENTS
A. Deposits
New Jersey statutes permit the deposit of public funds in institutions located in New Jersey
which are insured by the Federal Deposit Insurance Corporation ("FDIC"), or by any other
agencies of the United States that insure deposits or the State of New Jersey Cash
Management Fund.
New Jersey statutes require public depositories to maintain collateral for deposits of public
funds that exceed insurance limits as follows:
The market value of the collateral must equal five percent of the average
daily balance of public funds; or
If the public funds deposited exceed 75 percent of the funds of the
depository, the depository must provide collateral having a market value
equal to 100 percent of the amount exceeding 75 percent.
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.
At year-end the carrying amount of the Borough's deposits was $6,935,290.35 and the book
balance amount was $6,701,772.22 Of this amount $250,000.00 was covered by federal
depository insurance and a collateral pool under New Jersey's Governmental Unit Deposit
Protection Act covered the remaining $6,685,290.35.
B. Investments
1.
When authorized by a cash management plan approved pursuant to N.J.S. 40A: 5-14,
the Borough may use available funds for the purchase of the following types of
securities which, if suitable for registry, may be registered in the name of the Borough:
(a) Bonds or other obligations of the United States or obligations guaranteed by the United
States.
(b) Government money market mutual funds.
( c) 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.
(d) Bonds or other obligations of the Borough, or bonds or other obligations of school
districts of which the Borough is a part or within which the school district is located.
(e) Bonds or other obligations, having a maturity date not more than 397 days from the
date of purchase, approved by the Division of Investments, New Jersey Department of
the Treasury.
- 37 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 2. CASH AND CASH EQUIVALENTS (CONTINUED)
B. Investments (Continued)
(f) Municipal investment pools.
(g) Deposits with the State of New Jersey Cash Management Fund established pursuant to
section 1 of P.L. 1977, c. 281; or
(h) Agreements for the repurchase of fully collateralized securities, if:
(1)
the underlying securities are permitted investments pursuant to paragraphs
(a) and (c) of this section;
(2)
the custody of collateral is transferred to a third party;
(3)
the maturity of the agreement is not more than 30 days;
(4)
the underlying securities are purchased through a public depository as
defined in section 1 of P.L. 1970, c. 236 (C.17:9-41);
(5)
a master repurchase agreement providing for the custody and security of
collateral is executed.
2.
Any investment instruments in which the security is not physically held by the Borough
shall be covered by a third-party custodial agreement, which shall provide for the
designation of such investments in the name of the Borough and prevent unauthorized
use of such investments.
3.
Investments are further regulated and restricted in accordance with N.J.S. 40A:S-15.1.
At year-end, the carrying value of the Borough's investments and the investment balance
was$ - 0 -.
C. Cash Management Plan
In accordance with N.J.S. 40A: 5-14, every municipality shall adopt a cash
management plan and shall deposit and invest its funds pursuant to that plan. The plan
shall be approved annually by majority vote of the governing body and may be modified
from time to time in order to reflect changes in federal or state law or regulations. The
chief financial officer shall be charged with administering the plan.
When an investment in bonds maturing in more than one year is authorized, the
maturity of those bonds shall approximate the prospective use of the funds invested.
The plan also requires a monthly report to the governing body summarizing all investments
made or redeemed since the previous report and shall include, at a minimum, the specific
detailed information as set forth in the statute.
- 38 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
VEAR ENDED DECEMBER 31, 2023
NOTE 2. CASH AND CASH EQUIVALENTS (CONTINUED)
D. Credit Risk Categories
All bank deposits and investments as of the balance sheet date are classified as to credit
risk by the following three categories described below:
Category 1
Category 2
Catetory 3
Deposits covered by federal depository insurance, or by
collateral held by the Borough or its agent, in the
Borough's name.
Deposits covered by collateral held by the pledging
financial institution's trust department, or by its agent,
in the Borough's name.
Deposits covered by collateral, held by the pledging
financial institution, or its trust department, or its
agent but not in the Borough's name.
NOTE 3. ASSESSMENT AND COLLECTION OF PROPERTY TAXES
6,935,290.35
None
None
New Jersey statutes require that taxable valuation of real property be prepared by the
Borough Tax Assessor as of October 1 in each year and filed with the County Board of
Taxation (the "Board") by January 10 of the following year.
Upon the filing of certified
adopted budgets by the Borough, Regional School District and County, the tax rate is struck
by the Board based on the certified amounts in each of the taxing districts for collection to
fund the budgets. Pursuant to statute, this process is to be completed on or before May 3,
with a completed duplicate of the tax rolls to be delivered to the Borough Tax Collector (the
"Collector") on or before May 13th.
Tax bills are prepared then mailed by the Collector of the Borough annually and set forth
the final tax for the tax year.
The bill contains a credit for preliminary amounts billed
previously with the balance payable in equal installments on August 1st and November 1st
of the tax year.
In addition the property owner receives a preliminary bill for the
succeeding year based on one half of the prior year's tax. The preliminary payments are
due and payable on February 1st and May 1st. The N.J. Statutes allow a grace period of 10
days for each payment period and the Borough granted this option to taxpayers. Taxes
become delinquent if not paid on the installment dates and become subject to interest
penalties of 8% or 18% of the amount delinquent. If taxes are delinquent on or after April
1st of the succeeding year, the delinquent amount is subject to "Tax Sale" which places a
tax lien on the property allowing the holder to enforce the tax lien by collection or
foreclosure.
New Jersey property tax laws establish a tax lien on real estate as of January 1st of the
current tax year even though the amount due is not known.
- 39 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 4. DEFERRED CHARGES TO BE RAISED IN SUCCEEDING BUDGETS
Certain expenditures are required to be deferred to budgets of succeeding years.
At
December 31, 2023, there were deferred charges to be raised as follows:
Water-Sewer Utility Operating Fund:
Deficit in operations - 2023
$
595.27
Water-Sewer Utility Capital Fund:
Overexpenditure of Improvement Authorization- Ord. #20-17
$ 63,601.50
NOTE 5. CAPITAL {GENERAL FIXED) ASSETS
During 2023 the following changes occurred in the fixed assets of the Borough:
General Fixed Assets:
Land
Buildings and Improvements
Equipment
Motor Vehicles and Equipment
Balance
Dec. 31. 2022
$
90,835.99
1,175,452.55
1,885,459.82
3,997,143.61
$
7,148,891.97
Additions
$
$
Balance
Dec. 31. 2023
$
90,835.99
1,175,452.55
1,885,459.82
3,997,143.61
$ 7,148,891.97
NOTE 6. TAXES AND WATER-SEWER CHARGES COLLECTED IN ADVANCE
Taxes and water-sewer charges collected in advance set forth as cash liabilities in the
financial statements, are as follows:
Balance, December 31
Prepaid Taxes
$
91,515.27
$
123,635.29
- 40 -
NOTE 7. DEBT
A. Long-Term Debt
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
The Local Bond Law governs the issuance of bonds and notes to finance general municipal
capital expenditures. Bonds are retired in serial installments within the statutory period of
usefulness. Bonds issued by the Borough are general obligation bonds, backed by the full
faith and credit of the Borough. Bond anticipation notes are issued to temporarily finance
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. All such notes must be paid no later than the tenth anniversary of the date of the
original note.
The State of New Jersey also prescribes that on or before the third
anniversary date of the original note a payment of at least equal to the first legally payable
installment of the bonds, in anticipation of which such notes were issued, be paid. A second
legal installment must be paid if the notes are to be renewed beyond the fourth anniversary
date of the original issuance and so on. Tax anticipation notes are issued if the cash on
hand is not sufficient to carry on normal operations of the municipality at any time during
the year. Such notes are authorized by a resolution adopted by the governing body.
The Borough's long-term debt is summarized as follows:
General Capital Fund
$4,960,000 Obligation Bonds, Series 2018.
Remaining annual
maturities of $400,000 to $480,000 at interest rates ranging from
2.50% to 5.00% through April 1, 2030.
Water-Sewer Utility Capital Fund
Water-Sewer Utility Capital Fund - Serial Bonds:
$1,040,000 Water-Sewer System
Refunding
Bonds,
Series
2018.
Remaining annual maturities of $95,000 to $105,000 at an interest rate
of 3.342% through April 1, 2028.
$875,000 Water-Sewer System Bonds, Series 2018. Remaining annual
maturities of $70,000 to $75,000 at interest rates ranging from 2.50%
to 5.00% through April 1, 2030.
- 41 -
$
$
$
$
3,280,000 *
3,280,000
500,000 **
525,000 *
1,025,000
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 7. DEBT (Continued)
A. Lona-Term Debt (Continued)
Redemption
* The 2018 Series Bonds maturing prior to April 1, 2026 are not subject to redemption prior
to their stated maturities. The Bonds of this issue maturing on or after April 1, 2026 are
redeemable at the option of the Borough, in whole or in part, on any date on or after April
1, 2025 at a redemption price equal to 100% of the principal amount thereof, plus accrued
interest to the date fixed for redemption.
** The General Obligation Refunding Bonds 2018 are not subject to early redemption.
The General Capital Fund Bonds and Loans and Water-Sewer Utility Capital Fund Bonds
mature serially in installments to the year 2030. Aggregate annual bonded indebtedness
debt service requirements are as follows:
BONDS:
General Capital
Year
2024
2025
2026
2027
2028
2029
2030
$
$
General Improvement Bonds
Princi~al
480,000
480,000
480,000
480,000
480,000
2,400,000
480,000
400,000
880,000
3,280,000
$
2018
Interest
103,200
79,200
61,200
48,000
33,600
325,200
19,200
6,000
25,200
$ ===3=50=,4=0=0=
- 42 -
$
Total
583,200
559,200
541,200
528,000
513,600
2,725,200
499,200
406,000
905,200
$ =====3:!::::,6==3=0 '=40=0=
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 7. DEBT (Continued)
A. Long-Term Debt (Continued)
BONDS: (Continued)
Water-Sewer Utility
General Imerovement Bonds
2018-R
Year
Principal
Interest
Total
Principal
2024
$
105,000 $
14,955
$
119,955
$
75,000 $
2025
100,000
11,530
111,530
75,000
2026
100,000
8,188
108,188
75,000
2027
100,000
4,846
104,846
75,000
2028
95 000
1 587
96 587
75 000
500,000
41,106
541 106
375,000
2029
75,000
2030
75 000
150,000
$
500,000 $
41 106
$
541 106
$
525,000 $
General Imerovement Bonds
Grand Total
Year
Principal
Interest
Total
2024
$
180,000 $
31,455
$
211,455
2025
175,000
24,280
199,280
2026
175,000
18,126
193,126
2027
175,000
12,721
187,721
2028
170,000
7 212
177 212
875,000
93 794
968 794
2029
75,000
3,375
78,375
2030
75 000
1,125
76 125
150,000
4 500
154 500
$
1,025,000 $
98,294
$
1,123,294
- 43 -
2018
Interest
Total
16,500
$
91,500
12,750
87,750
9,938
84,938
7,875
82,875
5 625
80,625
52,688
427 688
3,375
78,375
1 125
76 125
4 500
154,500
57,188
$
582)88
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 7. DEBT (Continued)
A. Long-Term Debt (Continued)
LOAN:
NJDEP Green Acres Loan
The loan from the NJ
Department of Environmental Protection was for $156,250
commencing June 10, 2011 through June 10, 2030 at interest rate of 2.0%; principal and
interest payment at $9,925.47 per year.
Peddie Lake Dam Restoration Loan
2024
2025
2026
2027
2028
2029
2030
Total
$
Principal
8,764.74
8,940.92
9,120.63
9,303.95
9.490.96
45,621.20
9,681.73
4,913.60
14,595.33
$
60,216.53
==:::::::::::==
Summary of General Capital Debt
2024
$
2025
2026
2027
2028
2029
2030
$
Interest
1,160.73
984.56
804.84
621.51
434.50
4,006.14
243.74
49.14
292.88
$ ===4=,2=9=9=.0=2=
- 44 -
$
9,925.47
9,925.48
9,925.47
9,925.46
9.925.46
49,627.34
9,925.47
4,962.74
14,888.21
$
64,515.55
==:::::::::::==
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 7. DEBT (Continued)
A. Long-Term Debt (Continued)
NJI-Bank
In May of 2010 the Borough has a no interest federal (fund) loan in the amount of
$1,451,250 and a state (trust) loan for $495,000 at interest rates from 3.50% to 5.00%.
The Borough must repay the loan in semi-annual installments over twenty years. Below is a
maturity schedule for the loans.
Federal (Fund)
Year
Principal
2024
$
77,745.52
2025
77,745.52
2026
77,745.52
2027
77,745.52
2028
77,745.52
388,727.60
2029
77,745.81
77,745.81
Total
$
466,473.41
State (Trust)
Principal
Interest
$
28,000.00
28,000.00
33,000.00
33,000.00
33,000.00
155,000.00
33,000.00
33,000.00
$
188,000.00
- 45 -
$
7,520.00
6,400.00
5,280.00
3,960.00
2,640.00
25,800.00
1,320.00
1,320.00
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 7. DEBT (Continued)
A. Long-Term Debt (Continued)
NJI-Bank (Continued)
In May 2012, the Borough received loans from the State of New Jersey to fund Water
Treatment Facility Improvements. The Borough has a no interest federal (fund) loan in the
amount of $685,482 and a state (trust) loan for $238,918 at interest rates from 2.10% to
3.14%. The Borough must repay the loan in semi-annual installments over twenty years.
Below is a maturity schedule for the loans.
Federal (Fund)
State (Trust)
Year
Principal
Principal
Interest
2024
$
36,078.00
$
12,657.00
$
3,025.80
2025
36,078.00
12,924.00
2,758.72
2026
36,078.00
13,213.00
2,470.50
2027
36,078.00
13,521.00
2,162.62
2028
36,078.00
13,907.00
1,775.90
180,390.00
66,222.00
12,193.54
2029
36,078.00
14,317.00
1,365.64
2030
36,078.00
14,751.00
931.82
2031
36,078.00
15,206.00
477.48
108,234.00
44,274.00
2,774.94
Total
$
288,624.00
$
110,496.00
$
14,968.48
- 46 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 7. DEBT (Continued)
A. Lona-Term Debt (Continued)
NJI-Bank (Continued)
In May 2012, the Borough received loans from the State of New Jersey to fund Advanced
Waste Water Treatment Plant Improvements. The Borough has a no interest federal (fund)
loan in the amount of $813,055 and a state (trust) loan for $283,382 at interest rates from
2.10% to 3.14%.
The Borough must repay the loan in semi-annual installments over
twenty years. Below is a maturity schedule for the loans.
Federal {Fund)
State {Trust)
Year
Principal
Principal
Interest
2024
$
42,792.36
$
15,013.00
$
3,588.86
2025
42,792.36
15,330.00
3,272.08
2026
42,792.36
15,672.00
2,930.22
2027
42,792.36
16,037.00
2,565.06
2028
42,792.36
16,495.00
2,106.40
213,961.80
78,547.00
14,462.62
2029
42,792.36
16,982.00
1,619. 78
2030
42,792.36
17,497.00
1,105.22
2031
42,792.52
18,035.00
566.30
128,377.24
52,514.00
3,291.30
Total
$
342,339.04
$
131,061.00
$
17,753.92
- 47 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 7. DEBT (Continued)
A. Long-Term Debt (Continued)
NJI-Bank (Continued)
In May 2017, the Borough received loans from the State of New Jersey to fund Water-Sewer
Plant Improvements. The Borough has a no interest federal (fund) loan in the amount of
$259,627 with principal forgiveness of $173,085 and a state (trust) loan for $80,000 at
interest rates from 3.125% to 5.00%. The Borough must repay the loan in semi-annual
installments over sixteen years. Below is a maturity schedule for the loans.
Federal {Fundl
State {Trustl
Year
Principal
Principal
Interest
2024
$
5,192.52
$
5,000.00
$
1,706.26
2025
5,192.52
5,000.00
1,456.26
2026
5,192.52
5,000.00
1,206.26
2027
5,192.52
5,000.00
1,056.26
2028
5,192.52
5,000.00
906.26
25,962.60
25,000.00
6,331.30
2029
5,192.52
5,000.00
756.26
2030
5,192.52
5,000.00
606.26
2031
5,192.52
5,000.00
456.26
2032
5,192.52
5,000.00
306.26
2033
1,012.52
5,000.00
156.26
21,782.60
25,000.00
2,281.30
Total
$
47,745.20
$ 50,000.00
$
8,612.60
- 48 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 7. DEBT (Continued)
A. Long-Term Debt (Continued)
NJI-Bank (Continued)
In May 2018, the Borough received loans from the State of New Jersey to fund Water-Sewer
Plant Improvements. The Borough has a no interest federal (fund) loan in the amount of
$963,975 and a state (trust) loan for $330,000 at interest rates from 3.73% to 3.75%. The
Borough must repay the loan in semi-annual installments over thirty years.
Below is a
maturity schedule for the loans.
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
Total
Federal (Fund)
Principal
$
32,493.52
32,493.52
32,493.52
32,493.52
32,493.52
162,467.60
32,493.52
32,493.52
32,493.52
32,493.52
32,493.52
162,467.60
32,493.52
32,493.52
32,493.52
32,493.52
32,493.52
162,467.60
32,493.52
32,493.52
32,493.52
32,493.52
32,493.52
162,467.60
32,493.52
32,493.52
10,516.61
75,503.65
$
725,374.05
- 49 -
$
State (Trust)
Principal
Interest
10,000.00
10,000.00
10,000.00
10,000.00
10,000.00
50,000.00
10,000.00
10,000.00
10,000.00
10,000.00
10,000.00
50,000.00
10,000.00
10,000.00
10,000.00
15,000.00
15,000.00
60,000.00
15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
75,000.00
15,000.00
15,000.00
15,000.00
20,000.00
65,000.00
$
10,706.24
10,206.24
9,706.24
9,206.24
8,706.24
48,531.20
8,406.24
8,106.24
7,806.24
7,506.24
7,193. 74
39,018.70
6,881.24
6,556.24
6,231.24
5,893.74
5,387.50
30,949.96
4,881.24
4,375.00
3,850.00
3,325.00
2,800.00
19,231.24
2,275.00
1,750.00
1,225.00
700.00
5,950.00
$
300,000.00
$
143,681.10
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 7. DEBT (Continued)
A. Long-Term Debt (Continued)
NJI-Bank (Continued)
In May 2022 the Borough received loans from the State of New Jersey to fund Water-Sewer
Plant Improvements. The Borough has a no interest federal (fund) loan in the amount of
$324,073 and a state (trust) loan for $315,000 at interest rates from 3.25% to 5.00%. The
Borough must repay the loan in semi-annual installments over thirty years.
Below is a
maturity schedule for the loans.
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
Total
Federal (Fund)
Principal
$
10,923.79
10,923.79
10,923. 79
10,923. 79
10,923. 79
54,618.95
10,923.79
10,923.79
10,923.79
10,923.79
10,923.79
54,618.95
10,923.79
10,923.79
10,923.79
10,923.79
10,923.79
54,618.95
10,923.79
10,923.79
10,923.79
10,923.79
10,923.79
54,618.95
10,923.79
10,923.79
10,923.79
10,923. 79
10,923.79
54,618.95
10,923.79
10,923.79
10,924.35
32,771.93
$
305,866.68
$
State {Trust)
Principal
Interest
5,000.00
5,000.00
5,000.00
5,000.00
5,000.00
25,000.00
10,000.00
10,000.00
10,000.00
10,000.00
10,000.00
50,000.00
10,000.00
10,000.00
10,000.00
10,000.00
10,000.00
50,000.00
10,000.00
10,000.00
10,000.00
15,000.00
15,000.00
60,000.00
15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
75,000.00
15,000.00
15,000.00
20,000.00
50,000.00
$
12,500.00
12,250.00
12,000.00
11,750.00
11,500.00
60,000.00
11,250.00
10J50.00
10,250.00
9J50.00
9,250.00
51,250.00
8,750.00
8,425.00
8,087.50
7,750.00
7,412.50
40,425.00
7,062.50
6,712.50
6,362.50
6,012.50
5,468.76
31,618.76
4,925.00
4,400.00
3,800.00
3,200.00
2,600.00
18,925.00
2,000.00
1,400.00
800.00
4,200.00
$
310,000.00
$
206,418. 76
- 50 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 7. DEBT (Continued)
A. Long-Term Debt (Continued)
NJI-Bank (Continued)
In May 2023 the Borough received loans from the State of New Jersey to fund Water-Sewer
Plant Improvements. The Borough has a no interest federal (fund) loan in the amount of
$145,378 and a state (trust) loan for $125,538 at interest rates from 3.03% to 5.00%. The
Borough must repay the loan in semi-annual installments over fifteen years.
Below is a
maturity schedule for the loans.
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
Total
Federal (Fund)
Principal
$
6,608.09
9,912.14
9,912.14
9,912.14
9,912.14
46,256.65
9,912.14
9,912.14
9,912.14
9,912.14
9,912.14
49,560.70
9,912.14
9,912.14
9,912.14
9,912.14
9,912.09
49,560.65
$
145,378.00
$
$
- 51 -
State (Trust)
Principal
Interest
5,000.00
5,000.00
5,000.00
10,000.00
25,000.00
10,000.00
10,000.00
10,000.00
10,000.00
10,000.00
50,000.00
10,000.00
10,000.00
10,367.00
10,181.00
9,990.00
50,538.00
125,538.00
$
$
4,035.77
5,675.30
5,425.30
5,175.30
4,925.30
25,236.97
4,425.30
3,925.30
3,425.30
2,925.30
2,425.30
17,126.50
1,925.30
1,425.30
925.30
611.18
302. 70
5,189.78
47,553.25
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 7. DEBT (Continued)
A. Long-Term Debt (Continued)
Summary of the total for all NJI-Bank loans is as follows:
Federal (Fund}
State (Trust)
Year
Principal
Principal
Interest
Total
2024
$
211,833.80
$
75,670.00
$
43,082.93
$
330,586.73
2025
215,137.85
81,254.00
42,018.60
338,410.45
2026
215,137.85
86,885.00
39,018.52
341,041.37
2027
215,137.85
87,558.00
35,875.48
338,571.33
2028
215,137.85
93,402.00
32,560.10
341,099.95
1.072,385.20
424,769.00
192,555.63
1,689,709.83
2029
215,138.14
99,299.00
29,143.22
343,580.36
2030
137,392.33
67,248.00
25,424.84
230,065.17
2031
137,392.49
68,241.00
22,981.58
228,615.07
2032
58,521.97
35,000.00
20,487.80
114,009.77
2033
54 341.97
35,000.00
19,025.30
108,367.27
602,786.90
304,788.00
117,062.74
1.024,637.64
2034
53,329.45
30,000.00
17,556.54
100,885.99
2035
53,329.45
30,000.00
16,406.54
99,735.99
2036
53,329.45
30,367.00
15,244.04
98,940.49
2037
53,329.45
35,181.00
14,254.92
102,765.37
2038
53,329.40
34,990.00
13,102.70
101.422.10
266,647.20
160,538.00
76 564.74
503 749.94
2039
43,417.31
25,000.00
11,943.74
80,361.05
2040
43,417.31
25,000.00
11,087.50
79,504.81
2041
43,417.31
25,000.00
10,212.50
78,629.81
2042
43,417.31
30,000.00
9,337.50
82,754.81
2043
43,417.31
30,000.00
8,268.76
81,686.07
217,086.55
135,000.00
50,850.00
402,936.55
2044
43,417.31
30,000.00
7,200.00
80,617.31
2045
43,417.31
30,000.00
6,150.00
79,567.31
2046
21,440.40
30,000.00
5,025.00
56,465.40
2047
10,923.79
35,000.00
3,900.00
49,823. 79
2048
10,923.79
15,000.00
2 600.00
28,523.79
130,122.60
140,000.00
24,875.00
294,997.60
2049
10,923.79
15,000.00
2,000.00
27,923. 79
2050
10,923.79
15,000.00
1,400.00
27,323. 79
2051
10,924.35
20,000.00
800.00
31,724.35
32,771.93
50,000.00
4,200.00
86,971.93
Total
$ 2,321,800.38
$
1,215,095.00
$
466,108.11
$
4,003,003.49
- 52 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 7. DEBT (Continued)
A. Long-Term Debt (Continued)
Summary of Water-Sewer Utility Capital Debt is as follows:
Total for
Year
Bond Indebtedness
NJI-Bank
Total
2024
$
211,455.00
$
330,586.73
$
542,041. 73
2025
199,280.00
338,410.45
537,690.45
2026
193,125.00
341,041.37
534,166.37
2027
187,721.00
338,571.33
526,292.33
2028
177,213.00
341,099.95
518,312.95
968,794.00
1,689,709.83
2,658,503.83
2029
78,375.00
343,580.36
421,955.36
2030
76,125.00
230,065.17
306,190.17
2031
228,615.07
228,615.07
2032
114,009.77
114,009.77
2033
108,367.27
108,367.27
154,500.00
1,024,637.64
1,179,137.64
2034
100,885.99
100,885.99
2035
99,735.99
99,735.99
2036
98,940.49
98,940.49
2037
102,765.37
102,765.37
2038
101,422.10
101,422.10
503,749.94
503,749.94
2039
80,361.05
80,361.05
2040
79,504.81
79,504.81
2041
78,629.81
78,629.81
2042
82,754.81
82,754.81
2043
81,686.07
81,686.07
402,936.55
402,936.55
2044
$
80,617.31
$
80,617.31
2045
79,567.31
79,567.31
2046
56,465.40
56,465.40
2047
49,823.79
49,823. 79
2048
28,523. 79
28,523.79
294,997.60
294,997.60
2049
27,923.79
27,923.79
2050
27,323.79
27,323.79
2051
31,724.35
31,724.35
86,971.93
86,971.93
Total
$
1,123,294.00
$
4,003,003.49
$ 5,126,297.49
- 53 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 7. DEBT (Continued)
B. Short-Term Debt
Bond Anticipation Notes
At December 31, 2023, the Borough's outstanding Bond Anticipation Notes (BAN) are as
follows:
Capital Fund
General
General
General
Water-Sewer
Water-Sewer
Water-Sewer
Water-Sewer
Interest
Rate
4.25 %
4.25
4.25
4.25 %
4.25
4.25
4.25
Subseauent Events
General Capital BAN's:
Original
Issue
Date
12/30/2020
9/29/2022
9/27/2023
9/30/2021
12/30/2020
9/29/2022
9/27/2023
Amount
$
1,084,750.00
1,103,000.00
1.483.250.00
$
3,671.000.00
$
520,000.00
323,676.00
185,000.00
140,324.00
$
1.169,000.00
$
4,840,000.00
Payment
Reau ired
First
Final
2023
2022
2026
2023
2023
2025
2026
2031
2033
2034
2030
2031
2033
2034
On June 26, 2024 the Borough issued $4,081,000 of BAN's consisting of new money of
$500,000, a rollover of $3,581,000, which was net of a budgeted down-payment of
$90,000. The BAN matures on March 25, 2025 and is at an interest rate of 4.50%.
On March 24, 2025 the Borough issued $5,080,000 of BAN's consisting of new money of
$1,137,000 which was net of a budgeted down payment of $138,000. The BAN matures on
March 23, 2026 and is at an interest rate of 4.00%.
Water-Sewer BAN's:
On June 26, 2024 the Borough issued $1,278,000 of BAN's consisting of new money of
$123,000 and a rollover of $1,155,000. The BAN matures on March 25, 2025 and is at an
interest rate of 4.50%.
On March 24, 2025 the Borough issued $1,452,600 of BAN's consisting of new money of
$146,600 which was net of a budgeted down-payment of $22,000 which was net a
budgeted paydown of $14,000. The BAN matures on March 23, 2026 and is at an interest
rate of 4.00%.
- 54 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 7. DEBT (Continued)
C. Bonds and Notes Authorized but not Issued
At December 31, 2023, the Borough had authorized but not issued bonds and notes as
follows:
General Capital Fund
Water-Sewer Utility Capital Fund
Subsequent Events:
$
1,910,909.97
$
6,045,520.00
During 2024 the Borough's Water-Sewer Utility adopted three (3) bond ordinances for
system improvements. The total of $1,573,000 is funded by Capital Improvement Funds of
$11,000 and bonds and notes authorized of $1,562,000.
During 2024 the Borough's General Capital Fund adopted three (3) bond ordinances for
various improvements. The total of $1,655,400 was funded by capital improvement funds
of $25,900, grants of $478,710 and bonds and notes authorized of $1,150,790.
During 2025 the Borough adopted a bond ordinance for improvements to the Borough's
water treatment plant. The total of $1,200,000 is funded by capital improvement funds of
$60,000, and bonds and notes anticipated of $1,140,000.
At December 31, 2024 Bonds and Notes Authorized but Not Issued (unaudited) were as
follows:
General Capital Fund
Water-Sewer Utility Capital Fund
D. Borrowing Power
$
2,608,082.09
$
7,117,481.00
New Jersey statutes limit the debt of a municipality to 3V2% of the average of the last three
preceding years equalized valuations of the taxable real estate and improvements.
The
Borough's statutory net debt percentage at December 31, 2023 was 2.18%. The Borough's
remaining borrowing power is 1.32%.
Subseauent Event
The Borough's statutory net debt percentage at December 31, 2024 was 2.168% resulting
in a remaining borrowing power of 1.332%.
The summary of municipal debt for the last three years and the calculation of statutory net
debt is presented in the statistical section of this report.
- 55 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 7. DEBT (Continued)
D. Borrowina Power (Continued)
Calculation of "Self-Liquidating Purpose". Water-Sewer Utility Per N.J.S.A. 40A:2-45
Cash Receipts from Fees, Rents and
Other Charges for the Year
Deductions:
Operating and Maintenance Costs
Debt Service
Excess/(Deficit) in Revenue
$
2,714,517.00
596,590.00
$ 3,173,962.70
3,311,107.00
$ . ( 137' 144.30)
There was a deficit in revenue of $137,144.30 and as such, the water-sewer utility was not
self-liquidating and therefore, based on the requirements $2,742,886 (20 x $137,144.30
(5%)) was not deductible from the gross debt and was factored into the net debt of the
Borough.
Subseauent Event - In addition for the year ended December 31, 2024 the Water-Sewer
Utility Fund was not self-liquidating.
Borrowina Power Under N.J.S.A. 40A:2-6
3112% of Equalized Valuation Basis (Municipal)
Net Debt
Remaining Borrowing Power
E. Summarv of Debt Activity
$ 18,735,073.39
11,665,012.50
$
7,070,060.89
During 2023 the following changes occurred in the debt of the Borough:
General Capital Fund:
Serial Bonds
Peddie Lake Dam Restoration Loan
Bond Anticipation Notes
Water-Sewer Utility Capital Fund:
Serial Bonds
Bond Anticipation Notes
Loans Payable
Balance
Dec. 31. 2022
$ 3,760,000.00
68,808.57
2,663,000.00
6,491,808.57
1,200,000.00
1,435,000.00
3,547,335.09
6,182,335.09
$12,674,143.66
$ 1,084,750.00
1,084/50.00
- 56 -
140,324.00
270,916.00
411,240.00
Balance
Retired
Dec. 31,2023
$
480,000.00
$
3,280,000.00
8,592.04
60,216.53
76/50.00
3,671.000.00
565,342.04
7,011,216.53
175,000.00
1,025,000.00
406,324.00
1,169,000.00
281,355.71
3,536,895.38
862,679.71
5,730,895.38
~ 1,428,021. 75
~ 12,742,111.91
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 8. PENSION PLANS
Descriotion of Svstems
Substantially all of the Borough's full-time employees participate in one of the following
contributory defined benefit public employee retirement systems which have been established
by State statute: the Public Employees' Retirement System (PERS) or the Police and Firemen's
Pension Fund (PFRS).
Public Emplovees' Retirement Svstem
The State of New Jersey, Public Employees' Retirement System (PERS) is a cost-sharing
multiple-employer defined benefit pension plan administered by the State of New Jersey,
Division of Pensions and Benefits (the Division). For additional information about PERS, please
refer to Division's Annual Comprehensive Financial Report (ACFR), which can be found at
htto: //www. ni .aov /treasury/oensions/annual-reports.shtml.
The vesting and benefit provisions are set by N.J.S.A. 43: 15A. PERS provides retirement,
death and disability benefits. All benefits vest after ten years of service, except for medical
benefits, which vest after twenty-five (25) years of service or under the disability provisions of
PERS.
The following represents the membership tiers for PERS:
Tier
--
1
2
3
4
5
Definition
Members who were enrolled prior to July 1, 2007
Members who were eligible to enroll on or after July 1, 2007 and prior to
November 2, 2008
Members who were eligible to enroll on or after November 2, 2008 and
prior to May 22, 2010
Members who were eligible to enroll on or after May 22, 2010 and prior
to June 28, 2011
Members who were eligible to enroll on or after June 28, 2011
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 65. Early retirement benefits are available to tier 1 and 2 members before reaching age
60, tiers 3 and 4 with 25 or more years of service credit 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 age at which a member can receive full early
retirement benefits in accordance with their respective tier. Tier 1 members can receive an
unreduced benefit from age 55 to age 60 if they have at least 25 years of service. 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.
- 57 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 8. PENSION PLANS (CONTINUED)
Police and Firemen's Retirement Svstem
The State of New Jersey, Police and Firemen's Retirement System (PFRS) is a cost-sharing
multiple-employer defined benefit plan administered by the State of New Jersey, Division of
Pensions and Benefits (the Division). For additional information about PFRS, please refer to
Division's Annual
Comprehensive
Financial
Report
(ACFR),
which
can
be
found
at
htto://www.ni.aov/treasurv/oensions/annual-reoorts.shtml.
The vesting and benefit provisions are set by N.J.S.A. 43:16A. PFRS provides retirement as
well as death and disability benefit. All benefits vest after ten years of service, except disability
benefits, which vest after four years of service.
The following represents the membership tiers for PFRS:
Tier
--
1
2
3
Definition
Members who were enrolled prior to May 22, 2010
Members who were eligible to enroll on or after May 22, 2010 and prior to
June 28, 2011
Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits are available at age 55 and are generally determined to be 2% of
final compensation for each year of creditable service 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 Reauired to be Made
The contribution policy for PERS is set by N.J.S.A. 43:15A and for PFRS is set by N.J.S.A.
43: 16A and requires contributions by active members and contributing employers. Employee
contributions for 2022 were seven and 50/lOOth percent (7.50%) for PERS and 10% for PFRS
of the employee's base wages.
The local employers' contribution amounts are based on an actuarially determined rate, which
includes the normal cost and unfunded accrued liability. Chapter 19, P.L. 2009 an option for
local employers of PERS and PFRS to contribute 50% of the normal and accrued liability
contribution amounts certified for payments due in State fiscal year 2009. Such employers will
be credited with the full payment and any such amounts will not be included in their unfunded
liability. The actuaries will determine the unfunded liability of those retirement systems, by
employer, for the reduced normal and accrued liability contributions provided under this law.
This unfunded liability will be paid by the employer in level annual payments over a period of
15 years beginning with the payments due in the fiscal year ended June 30, 2012 and will be
adjusted by the rate of return on the actuarial value of assets.
- 58 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 8. PENSION PLANS (Continued)
Contributions Reauired to be Made (Continued)
The Borough's contributions to the plan for the past three (3) years are as follows:
PERS
2023
2022
Covered Payroll
$
1,890,391
$
1,614,795
$
Actuarial Contribution Requirements
309,042
252,891
Total Contributions Employer Share
309,042
252,891
Percent of Covered Employee - Payroll
16.35
Ofo
15.66 %
Employee's Share
142,267
121,110
Percent of Covered Payroll
7.53 %
7.50 %
2021
1,666,083
253,869
253,869
15.24
125,015
7.50
All contributions were equal to the required contributions for each of the three (3) years,
respectively.
Pension Deferral (PERS) - Chapter 19 P.L. 2009
In May of 2009 the Borough received approval from the State of New Jersey Local Finance
Board to defer a portion of its 2009 pension liability for PERS in the amount of $73,533. The
repayment would be made over a fifteen (15) year period with interest beginning in 2013 and
ending in 2027 and the amount paid in 2023 was $11,526. The amount due on April 1, 2024
is $11,669 and on April 1, 2025 $11,719.
Pension (PERS) Accrual
The Borough is required to report on its financial statements on an "Other Comprehensive
Basis of Accounting" (OCBOA) Regulatory Basis, which does not require an accrual for its
obligations inclusive of pension. If the Borough were required to reflect the obligation under
Generally Accepted Accounting Principles (GAAP) then an accrual for the PERS obligation would
be needed in the amount of $3.437,404 since the obligation relates to the period December
31, 2023 and prior. The accrual (under GAAP) would affect the fund balance at yearend. The
annual pension bill due on April 1, 2024 is $282,132 and April 1, 2025 is $323,310.
PFRS
2023
2022
2021
Covered Payroll
$
1,398,920
$
1,382,078 $
1,320,672
Actuarial Contribution Requirements
479,314
389,061
378,359
Total Contributions Employer Share
479,314
389,061
378,359
Percent of Covered Employee - Payroll
34.26 %
28.15 %
28.65
Employee's Share
139,892
138,208
132,067
Percent of Covered Payroll
10.00
Ofo
10.00 %
10.00
All contributions were equal to the required contributions for each of the three (3) years,
respectively.
- 59 -
%
%
%
%
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 8. PENSION PLANS (Continued)
Pension Deferral (PFRS) - Chaoter 19 P.L. 2009
In May of 2009 the Borough received approval from the State of New Jersey Local Finance
Board to defer a portion of its 2009 pension liability for PFRS in the amount of $128,160. The
repayment would be made over a fifteen (15) year period with interest beginning 2013 and
ending 2027 and the amount paid in 2023 was $19,496. The amount due on April 1, 2024 is
$19,770 and on April 1, 2025 $19,932.
Pension (PFRS) Accrual
The Borough is required to report on its financial statements on an "Other Comprehensive
Basis of Accounting" (OCBOA) Regulatory Basis, which does not require an accrual for its
obligations inclusive of pension. If the Borough were required to reflect the obligation under
Generally Accepted Accounting Principles (GAAP) then an accrual for the PFRS obligation would
be needed in the amount of $3,925,648 since the obligation relates to the period December
31, 2023 and prior. The accrual (under GAAP) would affect the fund balance at yearend. The
annual pension bill due on April 1, 2024 is $512,388 and April 1, 2025 is $531,946.
Public Employees Retirement Svstem (PERS)
The information for PERS was abstracted from State of New Jersey Public Employees'
Retirement System Schedules of Employer Allocations and Schedules of Pension Amounts by
Employer as of June 30, 2023 and June 30, 2022 Independent Auditor's Report dated May 24,
2024 and May 18, 2023, respectively.
The Borough's reported liability is $4,252,749 and $3,698,407 for its proportionate share of
the net pension liability at December 31, 2023 and December 31, 2022, respectively. The net
pension liability was measured as of [measurement date] June 30, 2023 and June 30, 2022
and the total pension liability used to calculate the net pension liability was determined by
actuarial valuations as of July 1, 2022 and July 1, 2021 which were rolled forward. The
Borough's proportion of the net pension liability was based on a projection of the Borough's
long-term share of contributions to the pension plan relative to the projected contributions of
all participating entities, actuarially determined.
Local Group Share
Borough Proportionate Percentage
Difference - Increase/(Decrease)
June 30,
[Measurement Date 7
2023
2022
$
14,606,489,066
$
15,219,184,920
0.0211093338 %
0.0245067590 %
(0.0033974252) %
- 60 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 8. PENSION PLANS (Continued)
Public Employees Retirement Svstem (PERS) (Continued)
For the year ended December 31, 2023, the Borough's recognizable pension benefit of
$65,976. At December 31, 2023, the Borough reported deferred outflows of resources and
deferred inflows of resources related to PERS from the following sources:
Deferred
Deferred
Outflows of
Inflows of
of Resources
Resources
Changes of assumptions
$
6,717
$ 185,301
Net difference between expected and actual experience
29,234
12,498
Net difference between projected and actual investment
earnings on pension plan investment
14,080
Changes in proportion
372,208
604,289
Borough contributions subsequent to yearend
282,132
Total
$
704,371
$ 802,088
The $282,132 reported as deferred outflows of resources related to pensions resulting from
entities contributions subsequent to the measurement date (i.e. for the Borough year ending
December 31, 2023, the plan measurement date is June 30, 2023) will be recognized as a
reduction of the net pension liability in the Borough year ended December 31, 2024. Other
amounts reported as deferred outflows of resources and deferred inflows of resources related
to pensions will be recognized in pension expense based on local share is as follows:
Year Ended December 31.
Amount
2024
$
(414,962)
2025
(231,616)
2026
323,608
2027
(57,924)
2028
985
$
(379,909)
- 61 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 8. PENSION PLANS (Continued)
.Public Employees Retirement Svstem (PERS) (Continued)
Additional Information:
Collective (local employers) balances at June 30, 2023 and June 30, 2022 are as follows:
Collective deferred outflows of resources
Collective deferred inflows of resources
Collective net pension liability
Collective pension expense/(benefit)
Borough's proportion (of Local Group)
Actuarial Assumotions
$
June 30, 2023
1,080,204,730
1,780,216,457
14,606,489,066
(79,181,803)
0.0211093380
June 30, 2022
$
1,660, 772,008
3,236,303,935
15,219,184,920
(1,032,778,934)
Ofo
0.0245067590 %
The total pension liability for the June 30, 2023 measurement date was determined by an
actuarial valuation as of July 1, 2022, which rolled forward to June 30, 2023. This actuarial
valuation used the following assumptions:
Inflation:
Price
Wage
Salary Increases
Investment Rate of Return
Mortality Rates:
2.75%
3.25%
2.75 - 6.55% (based on years of service)
7.00 Percent
Pre-retirement mortality rates were based on the Pub-2010 General Below-Median Income
Employee mortality table with an 82.2% adjustment for males and 101.4% adjustment for
females, and with future improvement from the base year of 2010 on a generational basis.
Post-retirement mortality rates were based on the Pub-2010 General Below-Median Income
Healthy Retiree mortality table with a 91.4% adjustment for males and 99. 7% adjustment for
females, and with future improvement from the base year of 2010 on a generational basis.
Disability retirement rates used to value disabled retirees were based on the Pub-2010 Non-
Safety Disabled Retiree mortality table with a 127.7% adjustment for males and 117.2%
adjustment for females, and with future improvement from the base year of 2010 on a
generational basis. Mortality improvement is based on Scale MP-2021.
The actuarial assumptions used in the July 1, 2021 valuation were based on the results of an
actuarial experience study for the period July 1, 2018 to June 30, 2021.
- 62 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 8. PENSION PLANS (Continued)
Public Emoloyees Retirement System (PERS) (Continued)
Long-Term Rate of Return:
In accordance with State statute, the long-term expected rate of return on plan investments
(7 .00% at June 30, 2023) 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 real rates of return for each major asset class included in PERS's
target asset allocation as of June 30, 2023 are summarized in the following table:
Asset Class
U.S. Equity
Non-U.S. Developed Market Equity
International Small Cap Equity
Emerging Market Equity
Private Equity
Real Estate
Real Assets
High Yield
Private Credit
Investment Grade Credit
Cash Equivalents
U.S. Treasuries
Risk Mitigation Strategies
Discount Rate
Target
Allocation
28.00 %
12.75
1.25
5.50
13.00
8.00
3.00
4.50
8.00
7.00
2.00
4.00
3.00
100.00 %
Long-term Expected
Real Rate of Return
8.98 %
9.22
9.22
11.13
12.50
8.58
8.40
6.97
9.20
5.19
3.31
3.31
6.21
The discount rate used to measure the total pension liability was 7.00% as of June 30, 2023.
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 and the nonemployer contributing entity will be made based on
100% of the actuarially determined contributions for the State employer and 100% of the
actuarially determined contributions for the local employers. Based on those assumptions, the
plan's fiduciary net position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long-term expected rate of return on plan
investments was applied to all projected benefit payments to determine the total pension
liability.
- 63 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 8. PENSION PLANS (Continued)
Public Emplovees Retirement Svstem (PERS) (Continued)
Sensitivitv of The Collective Net Pension Liabilitv to Changes in the Discount Rate:
The following presents the collective net pension liability of the participating employers as of
June 30, 2023 and June 30, 2022 (measurement dates), 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 -percentage point lower or 1- percentage-point higher than the
current rate:
Borough's proportionate share
of the pension liability
Borough's proportionate share
of the pension liability
Soecial Fundina Situation - PERS:
$
December 31, 2023
[Measurement Date June 30, 2023]
At Current
1% Decrease
6.00%
Discount Rate
7.00%
1% Increase
8.00%
3,980,286
$
4,252,749
$
2,272,189
December 31, 2022
[Measurement Date June 30, 2022]
At Current
1% Decrease
6.00%
Discount Rate
7.00%
1% Increase
8.00%
$
4,751,370
$
3,698,407
$
2,802,293
A special funding situation exists for certain Local employers of the Public Employees'
Retirement System.
The State, as a nonemployer, is required to pay the additional costs
incurred by local employers under Chapter 366, P.L. 2001 and Chapter 133, P.L. 2001. The
Chapter 366, P.L. 2001 legislation established the Prosecutors Part of the PERS which provides
enhanced retirement benefits for prosecutors enrolled in the PERS. The State is liable for the
increased pension costs to a county that resulted from the enrollment of prosecutors in the
Prosecutors Part.
The June 30, 2023 State special funding situation net pension liability
amount of $122.1 million is the accumulated difference between the annual actuarially
determined State obligation under the special funding situation and the actual State
contribution through the valuation date. The special funding situation for Chapter 133, P.L.
2001 is due to the State paying the additional normal cost related to benefit improvements
from Chapter 133.
Previously, this additional normal cost was paid from the Benefit
Enhancement Fund (BEF). As of June 30, 2023, there is no net pension liability associated with
this special funding situation there was no accumulated difference between the annual
additional normal cost under the special funding situation and the actual State contribution
through the valuation date.
The State special funding situation pension expense of $55. 7
million, for the fiscal year ending June 30, 2023, is the actuarially determined contribution
amount that the State owes for the fiscal year ending June 30, 2023. The pension expense is
deemed to be a State administrative expense due to the special funding situation.
- 64 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 8. PENSION PLANS (Continued)
Public Emplovees Retirement Svstem (PERS) (Continued)
Soecial Fundina Situation - PERS: (Continued)
As of June 30, 2023, there is no net pension liability associated with this special funding
situation as there was no accumulated difference between the annual additional normal cost
under the special funding situation and the actual State contribution through the valuation
date. The State special funding situation pension expense of $55. 7 million, for the fiscal year
ending June 30, 2023, is the actuarially determined contribution amount that the State owes
for the fiscal year ending June 30, 2023.
The pension expense is deemed to be a State
administrative expense due to the special funding situation.
The Borough has the following attributed to it related to the Special Funding Situation:
December 31.
2023
2022
2021
Borough's
Proportionate
Share
Employer's Pension Expense
and Related Revenues
Ch.133 P.L. 2001
Borough's
State Total
Share
0.0211894796 %
$
45,000,471
$
9,535
0.0246046674
31.626,530
7,782
- NOT AVAILABLE -
Pension Plan Fiduciary Net Position:
Detailed information about the pension plan's fiduciary net position is available in the
separately issued Financial Report for the State of New Jersey Public Employees Retirement
System (PERS) or by visiting their website at www.state.nj.us/treasury/pensions.
Police and Firemen's Retirement Svstem (PFRS)
The information for PFRS was abstracted from State of New Jersey Police and Firemen's
Retirement System Schedules of Employer Allocations and Schedules of Pension Amounts by
Employer as of June 30, 2023 and June 30, 2022 Independent Auditor's Report dated May 24,
2024 and July 25, 2023, respectively.
The Borough's reported liability net is $4,252,749 and $4,218,511 for its proportionate share
of the net pension liability at December 31, 2023 and December 31, 2022, respectively. The
net pension liability was measured as of June 30, 2023 and June 30, 2022 and the total
pension liability used to calculate the net pension liability was determined by actuarial
valuations as of July 1, 2022 and July 1, 2021 which were rolled forward. The Borough's
proportion of the net pension liability was based on a projection of the Borough's long-term
share of contributions to the pension plan relative to the projected contributions of all
participating entities, actuarially determined.
- 65 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 8. PENSION PLANS (Continued)
Police and Firemen's Retirement System CPFRS) (Continued)
June 30,
(Measurement Date)
Local Group Share
$ 13,084,649,602
$
13,483,472,009
Borough Proportionate Percentage
Difference - Increase
0.0384906500 %
0.0368546200 %
0.0016360300 %
For the year ended December 31, 2023, the Borough's recognizable pension benefit was
$512,388. At December 31, 2023, the Borough reported deferred outflows of resources and
deferred inflows of resources related to PFRS from the following sources:
Changes of assumptions
Net difference between expected and actual experience
Net difference between projected and actual investment
earnings on pension plan investment
Changes in proportion
Borough contributions subsequent to yearend
Total
Deferred
Outflows of
Resources
$
9,179
182,094
216,584
578,158
512,388
$ 1,498,403
Deferred
Inflows of
Resources
$
287,162
202,816
168,934
$
658,912
The $512,388 reported as deferred outflows of resources related to pensions resulting from
entities contributions subsequent to the measurement date (i.e. for the Borough year ending
December 31, 2023, the plan measurement date is June 30, 2023) will be recognized as a
reduction of the net pension liability in the Borough year ended December 31, 2023.
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense based on local share is as follows:
Year Ended December 31.
Amount
2023
$
659,207
2024
632,626
2025
(1,017,831)
2026
87,541
2027
(31,346)
Thereafter
p,195)
$
327,002
- 66 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 8. PENSION PLANS (Continued)
Police and Firemen's Retirement System (PFRS) (Continued)
Additional Information:
Collective (local employers) balances at June 30, 2023 and June 30, 2022 are as follows:
June 30, 2023
June 30, 2022
Collective deferred outflows of resources
$
1, 753,080,638
$
2,163,793,985
Collective deferred inflows of resources
1,966,439,601
2,805,919,493
Collective pension expense/(benefit)
844,810,693
165,943,124
Collective net pension liability
Local Group
13,084,649,602
13,483,472,009
Less: Special Funding Situation (1)
2,035,866,759
2,037,115,833
$
11,048,782,843
$
11,446,356,176
Borough's proportion (of Local Group)
0.0384900500 %
0.0368546200
(1) Special Funding Situation
%
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
that 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.
The amounts contributed on behalf of the local participating
employers under this legislation is considered to be a special funding situation as defined by
GASB Statement No. 68 and the State is treated as a nonemployer contributing entity. The
State special funding situation net pension liability amount of $2,035,866, 759 and
$2,037,115,833 as of June 30, 2023 and June 30, 2022, respectively, are the accumulated
difference between the annual actuarially determined State obligation under the special
funding situation and the actual State contribution through the valuation date. Since the local
participating employers do not contribute under this legislation directly to the plan (except for
employer specific financed amounts), there is no net pension liability or deferred outflows or
inflows to report in the financial statements of the local participating employers related to this
legislation. However, the notes to the financial statements of the local participating employers
must disclose the portion of the nonemployer contributing entities' total proportionate share of
the collective net pension liability that is associated with the local participating employer. In
addition, each local participating employer must recognize pension expense associated with the
employer as well as revenue in an amount equal to the nonemployer contributing entities' total
proportionate share of the collective pension expense associated with the local participating
employer.
However, the notes to the financial statements of the local employers must disclose the portion
of the nonemployer contributing entitles' total proportionate share of the collective net pension
liability that is associated with the local participating employer.
- 67 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
VEAR ENDED DECEMBER 31, 2023
NOTE 8. PENSION PLANS (Continued)
Police and Firemen's Retirement System CPFRS) (Continued)
Additional Information: (Continued)
State Proportionate Share
Net Pension Liability
Attributed to Borough
State Pension
Expense Prooortion
June 30, 2023
June 30, 2022
June 30, 2021
Actuarial Assumotions:
$
783,618.00
750,771.00
686,243.00
$
89,735.00
86,619.00
76,427.00
The collective total pension liability for the June 30, 2023 measurement date was determined
by an actuarial valuation as of July 1, 2022, which rolled forward to June 30, 2023. This
actuarial valuation used the following assumptions:
Inflation:
Police
Wages
Salaries Increase:
Through all Future Years
Investment Rate of Return
Mortality Rates:
2.75%
3.25%
3.25 - 16.25% (based on years of services)
7 .00 Percent
Employee mortality rates were based on the PubS-2010 amount-weighted mortality table with
a 105.6% adjustment for males and 102.5% adjustment for females. For healthy annuitants,
mortality rates were based on the PubS-2010 amount-weighted mortality table with a 96.7%
adjustment for males and 96.0% adjustment for females. Disability rates were based on the
PubS-2010 amount-weighted mortality table with a 152.0% adjustment for males and 109.3%
adjustment for females. Mortality improvement is based on Scale MP-2021.
The actuarial assumptions used in the July 1, 2021 valuation were based on the results of an
actuarial experience study for the period July 1, 2018 to June 30, 2021.
Long-Term Rate of Return:
In accordance with State statute, the long-term expected rate of return on plan investments
(7 .00% at June 30, 2023) 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.
- 68 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 8. PENSION PLANS (Continued)
Police and Firemen's Retirement System (PFRS) (Continued)
Long-Term Rate of Return: (Continued)
Best estimates of arithmetic rates of return for each major asset class included in PFRS's target
asset allocation as of June 30, 2023 are summarized in the following table:
Asset Class
U.S. Equity
Non-U.S. Developed Market Equity
International Small Cap Equity
Emerging Market Equity
Private Equity
Real Estate
Real Assets
High Yield
Private Credit
Investment Grade Credit
Cash Equivalents
U.S. Treasuries
Risk Mitigation Strategies
Discount Rate:
Target
Allocation
28.00 %
12.75
1.25
5.50
13.00
8.00
3.00
4.50
8.00
7.00
2.00
4.00
3.00
100.00 %
Long-term Expected
Real Rate of Return
8.98 %
9.22
9.22
11.13
12.50
8.58
8.40
6.97
9.20
5.19
3.31
3.31
6.21
The discount rate used to measure the total pension liability was 7.00% as of June 30, 2023.
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 and the nonemployer contributing entity will be made based on
100% of the actuarially determined contributions for the State employer and 100% of the
actuarially determined contributions for the local employers. Based on those assumptions, the
plan's fiduciary net position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long-term expected rate of return on plan
investments was applied to all projected benefit payments to determine the total pension
liability.
Sensitivity of The Collective Net Pension Liability to Changes in the Discount Rate:
The following presents the collective net pension liability net of the Special Funding situation of
the participating employers as of June 30, 2023 and June 30, 2022 (measurement dates),
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 -percentage point lower or
1- percentage-point higher than the current rate:
- 69 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 8. PENSION PLANS (Continued)
Police and Firemen's Retirement System (PFRS) (Continued)
Sensitivitv of The Collective Net Pension Liability to Chanaes in the Discount Rate: (Continued)
December 31, 2023
[Measurement Date June 30, 2023]
At Current
1 % Decrease
Discount Rate
1% Increase
8.00%
6.00%
7.00%
Borough's proportionate share
of the pension liability
$
5,925,461
$
4,252,749
$
2,859,780
December 31, 2022
[Measurement Date June 30, 2022]
At Current
1 % Decrease
Discount Rate
1% Increase
8.00%
6.00%
7.00%
Borough's proportionate share
of the pension liability
$
5,788,253
$
4,218,511
$
2,911,693
Pension Plan Fiduciarv Net Position:
Detailed information about the pension plan's fiduciary net position is available in the
separately issued Financial Report for the State of New Jersey Police and Firemen's Retirement
System or by visiting their website at www.state.ni.us/treasurv/oensions.
NOTE 9. FUND BALANCES
The fund balances at December 31, 2023 which have been appropriated and included as
anticipated revenue in the year ending December 31, 2024 are as follows:
Fund Balance
Utilized in Budget of
Percent of Fund
Fund
December 31. 2023
Succeeding Year (2024)
Balance Used
Current
$
1,324,585.00
$
1,030,874.60
77.83%
Water-Sewer
25,021.45
None
None
- 70 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 10. POST EMPLOYMENT RETIREMENT BENEFITS
The Borough does not provide post-retirement healthcare benefits for employees who retire.
Special Funding Situation
Under Chapter 330, P.L. 1997, the State shall pay the premium or periodic charges for the
qualified local police and firefighter retirees and dependents equal to 80% of the premium or
periodic charge for the category of coverage elected by the qualified retiree under the State
managed care plan or a health maintenance organization participating in the program
providing the lowest premium or periodic charge. The State also provides funding for retiree
health benefits to survivors of local police officers and firefighters who die in the line of duty
under Chapter 271, P.L.1989.
Therefore, these employers are considered to be in a special funding situation as defined by
GASB Statement No. 75 and the State is treated as a nonemployer contributing entity. Since
the local participating employers do not contribute under this legislation directly to the plan,
there is no net OPEB liability, deferred outflows of resources or deferred inflows of resources to
report in the financial statements of the local participating employers related to this legislation.
The State's Total OPEB Liability for special funding situation for last three years is as follows:
June 30, 2023
June 30, 2022
June 30, 2021
$
3,489,093,208
3,373,809,587
3,861,357,890
The amount of the State's proportionate share of the net OPEB liability for special funding
situation attributable to employees and retirees of the Borough of Hightstown for last three
years is as follows:
State Proportionate
Number
Share of Net OPEB
Employer OPEB
of
Liability Attributed
Expense/(Benefit) &
Em~loyee
to Borough
Related Revenue
Percent
June 30, 2023
26
$
2,607,696
$
835,465
0.132060 O/o
June 30, 2022
23
4,720,061
(774,189)
0.139903
June 30, 2021
23
5,465,636
(745,806)
0.289249
NOTE 11. DEFINED CONTRIBUTION RETIREMENT PROGRAM
Description of System
The Defined Contribution Retirement Program (DCRP) was established on July 1, 2007 for
certain public employees under the provisions of Chapter 92, P.L. 2007 and Chapter 103,
P.L. 2007.
The program provides eligible members, with a minimum base salary of
$1,500.00 or more, with a tax-sheltered, defined contribution retirement benefit, in addition
to life insurance and disability coverage. The DCRP is jointly administered by the Division of
Pensions and Benefits and Prudential Financial.
- 71 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 11. DEFINED CONTRIBUTION RETIREMENT PROGRAM (CONTINUED)
Descriotion of Svstem (Continued)
If an eligible elected or appointed official will earn less than $5,000.00 annually, the official
may choose to waive participation in the DCRP for that office or position. This waiver is
irrevocable.
This retirement program is a new pension system where the value of the pension is based on
the amount of the contribution made by the employee and employer and adjusted for
membership earnings or loses. It is a Deferred Compensation Program where the employee
has a portion of tax deferred salary placed into an account that the employee manages
through investment options provided by the employer.
The law requires that three classes of employees enroll in the DCRP, detailed as follows:
•
All elected officials taking office on or after July 1, 2007, except that a person who is
reelected to an elected office held prior to that date without a break in service may remain in
the Public Employee's Retirement System (PERS).
•
A Governor appointee with the advice and consent of the Legislature or who serves at
the pleasure of the Governor only during that Governor's term of office.
•
Other employees commencing service after July 1, 2007, pursuant to an appointment by
an elected official or elected governing body which include the statutory untenured chief
administrative officer such as the Business Administrator, County Administrator or Municipal
or County Manager, Department Heads, Legal Counsel, Municipal or County Engineer,
Municipal Prosecutor and the Municipal Court Judge.
Notwithstanding the foregoing requirements, other employees who hold a professional
license or certificate or meet other exceptions are permitted to remain in PERS.
Contributions Reauired and Made
Contributions made by employees for DCRP are currently 5.5% of their base wages.
Member contributions are matched by a 3.0% employer contribution.
The contribution to the plan for the last three years is as follows.
2023
2022
2021
Em plover
$
7,109.42
N/A
N/A
Employee
$
13,034.02
N/A
N/A
- 72 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 12. RISK MANAGEMENT
Property and Liability Insurance
The Borough, together with other governmental units, are members of the Statewide Municipal
Joint Insurance Fund (the "Fund"). The Fund, which is organized and operated pursuant to the
regulatory authority of the Departments of Insurance and Community Affairs, State of New
Jersey, provides for a pooling of risks, subject to established limits and deductibles.
In
addition, the Fund has obtained cost effective reinsurance and excess liability coverages for
participant local units.
For the year ended December 31, 2023, the Fund provided coverage for Property, Boiler and
Machinery, Automobile Liability, General Liability, Workmen's Compensation, Public Employee
Blanket Bond and public officials surety bond coverage.
The coverage is subject to certain
policy limits and deductible amounts. The coverage is designed to minimize the impact of any
potential losses to the Borough for matters that may have been caused or related to the
Borough or its employees.
Statewide Municipal Joint Insurance Fund
At December 31, 2023 the Fund reported for all years combined, total assets of
$50,687,086, liabilities and reserves of $38,834,575 which includes loss reserves of
$38,714,014 and an unrestricted net position balance of $11,852,511. This represents the
latest available information from their Annual Independent Audit Report dated June 28,
2024, which expressed a qualified opinion with respect to the IBNR's liability.
New Jersev Unemolovment Comoensation Insurance
The Borough has elected to fund its New Jersey Unemployment Compensation Insurance under
the "Benefit Reimbursement Method". Under this plan, the Borough is required to reimburse
the New Jersey Unemployment Trust Fund for benefits paid to its former employees and
charged to its account with the State. The Borough is billed quarterly for amounts due to the
State.
The following is a summary of Borough contributions, employee contributions,
reimbursements to the State for benefits paid and the ending balance of the Borough's trust
fund for the current and prior two years:
Year Ended
Contributions
Interest
Amount
Ending
December 31.
Employer
Employee
Earned
Reimbursed
Balance
2023
$ 7,000.00
$
7,816.45
$
918.40
$
1,631.62
$
81,994.58
2022
7,000.00
2,414.33
359.00
967.07
67,891.35
2021
None
4,803.51
383.15
None
59,085.09
- 73 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 13. CONTINGENT LIABILITIES
A. Accrued Sick and Vacation Benefits
The Borough of Hightstown has contractual agreements with two unions, which allow
employees, upon retirement, to be compensated for unused sick time. Employees who retire
will receive a lump sum payment for unused sick time at the latest daily rate for every full day
earned and unused in an amount not to exceed $15,000, credited on their employment
records and certified by the Borough on the effective date of their retirement, at the prevailing
rate of pay at the time of retirement.
Other union employees, upon retirement and depending upon their respective agreement, will
be compensated at the rate of one day for every full day earned and unused, at the current
rate of pay at the time of retirement, but not to exceed $15,000. A similar policy exists for
non-union employees.
All vacation time earned by employees can be carried over subject to a five (5) day limit and is
to be paid to the employee, upon termination with the Borough, at the current rate of pay.
The Borough's estimated total liability for unused sick and unused vacation time for the last
three (3) years is as follows:
Year Ended
December 31.
2023
2022
2021
Total Liabilitv Unused
Sick and Vacation
$
221,366
202,848
215,551
Management believes this amount approximates the calculation as required by GASB #16;
however, the actual potential liability could ultimately be lower than the reported amount.
The Borough has not earmarked funds for the ultimate payout of compensated absences upon
retirement; however, provisions are made annually for actual retirement.
B. State and Federal Financial Assistance
The Borough receives financial assistance from the State of New Jersey and the U.S.
government in the form of grants. Entitlement to the funds is generally conditional upon
compliance with terms and conditions of the financial assistance agreements and applicable
regulations, including the expenditure of the funds for eligible purposes.
Substantially all
grants, entitlements and cost reimbursements are subject to financial and compliance audits
by granters. As a result of these audits, costs previously reimbursed could be disallowed
and require repayment to the granter agency.
As of December 31, 2023, the Borough
estimates that no material liabilities will result from such audits.
- 74 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 13. CONTINGENT LIABILITIES (Continued)
C. Major Tax Assessments
Taxpayers in 2023 with assessments in excess of 1 % of the total assessed valuation were
as follows:
Owner
Presbyterian Homes at Meadow Lake
Hightstown Development Assoc. LLC
SJP/MCP/LAP - Hightstown c/o Pumerac
D. Pendina Litigation
$
Assessed
Value
11,200,000.00
9,552,000.00
5,040,000.00
% of Total
Assessed
Value
2.83%
2.41%
1.42%
There are actions, which have been instituted against the Borough which are either in the
discovery stage or whose final outcome cannot be determined at the present time. In the
opinion of the administration, the amount of ultimate liability with respect to these actions
will not materially affect the financial position of the Borough.
It is the opinion of the Borough officials that there is no litigation threatened or pending that
would materially affect the financial position of the Borough or adversely affect the
Borough's ability to levy, collect and enforce the collection of taxes or other revenue for the
payment of its bonds or other obligations.
The Borough officials believe that negligence and other types of liability suits, of which the
Borough is aware, appear to be within the stated policy limits and would be deferred by the
respective carriers.
NOTE 14.
INTERFUND RECEIVABLES AND PAYABLES
The following interfund balances remained on the balance sheets at December 31, 2023:
Interfund
Interfund
Fund
Receivable
PaY'.able
Current
$
575,836.79
$ 2,857 ,508.65
Grant
150,345.15
Trust Other
245,257.40
44,150.00
Trust Payroll
7,970.28
47,534.62
Trust Unemployment
50,042.96
Animal Control Fund
659.32
General Capital
2,784,437.64
400,000.00
Water-Sewer Utility Operating
511,417.03
425,889.92
Water-Sewer Capital
550,883.38
$
4,325,966.57
$ 4,325,966.57
- 75 -
BOROUGH OF HIGHTSTOWN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2023
NOTE 15. LENGTH OF SERVICE AWARD PLAN
On December 17, 2001, the Division approved the Borough's Length of Service Award Plan,
provided by Lincoln National Life Insurance Company. The purpose of this plan is to enhance
the Borough's ability to retain and recruit volunteer firefighters and volunteer members of
emergency service squads.
Lincoln National Life Insurance Company will provide for the benefit of participants, a multi-
fund variable annuity contract as its funding vehicle. The plan shall provide for a fixed annual
contribution of $1,150 to each eligible volunteer who accumulates a minimum of 75 service
points, based on criteria established by Borough Ordinance No. 99-20.
The Borough's
contribution for any given year is included in the next subsequent year's budget.
All amounts awarded under a length of service award plan shall remain the asset of the
sponsoring agency; the obligation of the sponsoring agency to participant volunteers shall be
contractual only; and no preferred or special interest in the awards made shall accrue to such
participants. Such money shall be subject to the claims of the sponsoring agency's general
creditors until distributed to any or all participants.
Applicable Year
2023
2022
2021
$
Total
20,250.00
18,200.00
13,800.00
Per Member
$
750.00
750.00
750.00
$
1,150.00
1,150.00
1,150.00
A separate Accountant Review Report as of December 31, 2023 revealed net position
available for benefits of $841,630.60 has prepared and submitted in conjunction with the
audit.
Note 16. INTERLOCAL AGREEMENTS/SHARED SERVICES
Public Safety
The Agreement shall be for five (5) years, commencing on May 16. 2021 and ending May 15,
2026. The Agreement may be extended for two additional one-year terms with the agreement
of both Parties.
The Fee shall be $196,630 for the first year of service.
The Fee will be
increased annually in an amount of two percent (2.0%) above the prior year's fee for years
two (2) through five (5). The amount paid for 2023 was $202,066.38. Notwithstanding the
initial five (5) year term, either party may terminate this Agreement, with or without cause,
upon 12 months written notice.
- 76 -
REQUIRED SUPPLEMENTARY SCHEDULES
Contractually
required
Year
contribution
2023
$
309,042
......
2022
252,891
......
2021
253,869
2020
218,424
2019
228,646
2018
213,657
2017
204,612
2016
209,457
2015
204,791
2014
189,679
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
SCHEDULE OF BOROUGH CONTRIBUTIONS
PUBLIC EMPLOYEES RETIREMENT SYSTEM lPERS)
LAST TEN (10) FISCAL YEARS*
Contributions
in relation to
the
contractually
Contribution
required
deficiency
contribution
(excess)
$
309,042
None
$
252,891
None
253,869
None
218,424
None
228,646
None
213,657
None
204,612
None
209,457
None
204,791
None
189,679
None
Exhibit RSl-1
Borough's
Contributions as a
covered-
percentage of
employee
covered-employee
payroll
payroll
1,890,391
16.35%
1,614,795
15.66%
1,666,083
15.24%
1,603,412
13.62%
1,656,554
13.80%
1,650,745
12.94%
1,587,077
12.89%
1,551,245
13.50%
1,617,734
12.66%
1,630,202
11 .64%
-...J
CX>
Year
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
BOROUGH OF HIGHSTOWN
COUNTY OF MERCER
SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE BOROUGH'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS)
LAST TEN (10) FISCAL YEARS*
Borough's
proportionate
share of the net
Borough's
pension liability
Borough's
proportionate
(asset) as a
proportion of the
share of the net
Borough's
percentage of its
net pension liability
pension liability
covered-
covered-employee
(asset)
(asset)
employee payroll
payroll
0.021109333800 %
$
3,057,555
$
1,890,391
161.74%
0.024506790000
3,698,047
1,614,795
229.01%
0.021594013900
2,558,135
1,666,083
153.54%
0.023206645800
3,784,397
1,603,412
236.02%
0.022455205000
4,046,087
1,656,554
244.25%
0.022835960000
4,496,286
1,650,745
272.38%
0. 023063316900
5,368,772
1,587,077
338.28%
0.023031887600
6,821,384
1,551,245
439.74%
0.02480424 7000
5,469,019
1,617,734
338.07%
0.024841652500
4,651,037
1,630,202
285.30%
Notes to Required Supplementary Information:
Benefit Changes - There were none.
Plan fiduciary
net position as
a percentage
of the total
pension
liability
65.23%
62.91%
70.34%
58.32%
56.27%
53.60%
48.69%
47.92%
47.92%
52.08%
Changes of Assumptions - The discount rate remained unchanged from 7.00% as of June 30, 2022 to 7.00% as of June 30, 2023.
Exhibit RSl-2
Contractually
required
Year
contribution
2023
$
479,314
2022
389,061
-..J
<O
2021
378,359
2020
367,527
2019
316,401
2018
256,456
2017
227,335
2016
260,330
2015
228,288
2014
260,330
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
SCHEDULE OF BOROUGH CONTRIBUTIONS
POLICE AND FIREMAN RETIREMENT SYSTEM (PFRS)
LAST TEN (10\ FISCAL YEARS*
Contributions
in relation to
the
contractually
Contribution
required
deficiency
contribution
(excess)
$
479,31 4
None
$
389,061
None
378,359
None
367,527
None
316,401
None
256,456
None
227,335
None
260,330
None
228,288
None
260,330
None
Exhibit RSl-3
Borough's
Contributions as a
covered-
percentage of
employee
covered-employee
payroll
payroll
1,398,920
34.26%
1,382,672
28.14%
1,320,672
28.65%
1,185,284
31.01%
1,134,792
27.88%
1,186,162
21.62%
1,108,037
20.52%
939,823
27.70%
891,986
25.59%
944,522
27.56%
())
0
Year
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE BOROUGH'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
POLICE AND FIREMAN RETIREMENT SYSTEM tPFRSl
LAST TEN 110) FISCAL YEARS*
Borough's
proportionate share
Borough's
of the net pension
Borough's
proportionate
liability (asset) as a
proportion of the
share of the net
Borough's
percentage of its
net pension liability
pension liability
covered-
covered-employee
(asset)
(asset)
employee payroll
payroll
0.038490650000 %
$
4,252,749
$
1,398,920
304.00%
0.036854620000
4,218,511
1,382,078
305.23%
0.033382489300
2,439,977
1,320,672
184.75%
0.033912359800
4,381 ,924
1,185,284
369.69%
0.036384827700
4,452,709
1,134,792
392.38%
0.032363510800
4,379,317
1,186,162
369.20%
0.028976796800
4,473,457
1, 108,037
403.73%
0.027880212900
5,326,216
939,823
566.73%
0.032067860000
5,334,546
891 ,986
598.05%
0.031281930000
3,728,793
944,522
394.78%
Notes to Required Supplementary Information:
Benefit Changes - There were none.
Changes of Assumptions - The discount rate remained unchanged from 7.00% as of June 30, 2022 to 7.00% as of June 30, 2023.
Exhibit RSl-4
Plan fiduciary
net position as
a percentage
of the total
pension
liability
70.16%
68.33%
77.26%
63.52%
64.99%
62.48%
58.61%
47.99%
52.01%
58.70%
SUPPLEMENTARY- FUND AND ACCOUNT SCHEDULES
CURRENT FUND
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
CURRENT FUND
SCHEDULE OF CASH
Exhibit A-4
Current Fund
Balance, December 31, 2022
Increased by Receipts:
Taxes Receivable
Tax Title Liens
Revenue Accounts Receivable
Non budget
Prepaid Taxes
Received from State of N.J. (Ch. 20, P.L. 1971)
Tax Overpayments
Interfunds:
Animal Control Fund
General Capital Fund
Water-Sewer Utility Operating Fund
Grant Fund
Water-Sewer Utility Capital Fund
Due to State of New Jersey
Decreased by Disbursements:
2022 Appropriation Reserves
2023 Appropriations
County Taxes
Regional School District Tax
Due to State of New Jersey
Accounts Payable
Prior Year Adjustment
Interfunds:
Grant Fund
Water-Sewer Utility Operating Fund
Water-Sewer Utility Capital Fund
Miscellaneous Expenditure Charged to Fund Balance
Balance, December 31, 2023
- 81 -
$ 18,986,705.60
2,632.39
1,654,108.44
35,923.64
91,515.27
16,279.45
7,049.90
891.00
2,063,357.60
68,922.68
400,231.20
10,646.00
$
655,690.41
7,387,237.21
3,320,647.88
9,637,902.00
8,794.00
51,558.78
3,003.38
260,024.75
315,380.00
553,225.10
37,700.67
$
4,099,148.22
23,338,263.17
$ 27,437,411.39
22,231,164.18
$
5,206,247.21
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
CURRENT FUND
SCHEDULE OF DUE FROM/(TO) STATE OF NEW JERSEY
(CH. 20, P.L. 1971)
Balance, December 31, 2022
Increased by:
Senior Citizens Deductions Per Tax Billings
$
2,000.00
Veterans Deductions Per Tax Billings
15,000.00
Deductions Allowed by Collector
None
Decreased by:
Senior Citizens Deductions Disallowed by Collector:
Current Year
$
182.88
Prior Year
720.55
Received from State of N .J.
16,279.45
Balance, December 31, 2023
Analysis of Amount for Taxes Receivable Schedule
Increased by:
Deductions Per Tax Billings
Deductions Allowed
Decreased By:
Disallowed
Taxes Receivable
- 82 -
$ 17,000.00
None
182.88
Exhibit A-5
$
(500.00)
17,000.00
$ 16,500.00
17,182.88
$
{682.88}
$ 16,817.12
a>
(J.)
Balance
2023
Year
Dec. 31. 2022
Levv
2022
~ 224,877.75
224,877.75
2023
~ 19,209,978.05
$ 224,877.75
$ 19,209,978.05
Analysis of 2023 Property Tax Levy:
Tax Yield:
General Property Tax
Yield
6% Penalty Added + Fees
Total Tax Yield
Tax Levy:
Regional School District Taxes
County Taxes:
General County Levy
County Library
County Open Space Preservation
Due County for Added and Omitted Taxes
Local Tax for Municipal Purposes
Add: Additional Taxes Levied
Local Taxes for Municipal Purposes Levied
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
CURRENT FUND
SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX YIELD
Added
Taxes
~ 3,403.78
3,403.78
$ 3,403.78
Collections
2022
~
123,635.29
$
123,635.29
$ 19,202,455.06
1,512.02
6,010.97
$ 9,637,902.00
2,883,872.47
297,709.36
134,905.23
NONE
$ 6,248,066.00
7,522.99
NONE
2023
~
223,898.43
223,898.43
18,762,807.17
$ 18,986,705.60
12,954,389.06
6,255,588.99
Transferred
Chap. 20
From Tax
P.L. 1971
Overpayments
~
1,699.87
1,699.87
$
16,817.12
$
16,817.12
$
1,699.87
$ 19,209,978.05
$ 19,209,978.05
ExhibitA-6
Transfers
To Tax
Balance
Title Liens
Dec. 31. 2023
$
2,683.23
2,683.23
~ 17,526.64
289,191.83
$ 17,526.64
$
291.875.06
Added 2022 Taxes
Added tax
2,683.23
SC-Disallowed
720.55
$
3,403.78
Balance, December 31, 2022
Increased by:
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
CURRENT FUND
SCHEDULE OF TAX TITLE LIENS
A
Transfer from Taxes Receivable
$
17,526.64
Other Charges
2,159.20
Decreased by:
Collections
Balance, December 31, 2023
A
- 84 -
Exhibit A-7
$
240,868.08
19,685.84
260,553.92
2,632.39
$
257,921.53
Balance, December 31, 2022
Increased by:
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
CURRENT FUND
SCHEDULE OF ACCOUNTS PAYABLE
Transfer from 2022 Appropriation Reserves
Decreased by:
Cancelled to Fund Balance
Cash Disbursed
Balance, December 31, 2023
$
132,718.53
51,558.78
SCHEDULE OF RESERVE FOR FIRE SAFETY AND CODE ENFORCEMENT
Balance
Cash
Cash
Dec. 31. 2022
Receipts
Disbursements
Code Enforcement - Property Maintenance
Registration Fees
$ 34,617.00
$
$
Fire Safety Fees
5,500.00
$ 40,117.00
$
$
- 85 -
Exhibit A-8
$ 223,728.42
25,257.13
$ 248,985.55
184,277.31
$
64,708.24
Exhibit A-9
Balance
Dec. 31. 2023
$
34,617.00
5,500.00
$
40,117.00
Exhibit A-I 0
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
CURRENT FUND
SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE
FOR THE YEAR ENDED DECEMBER 31, 2023
Balance
Accrued in
Balance
Dec. 31. 2022
2023
Collected
Dec. 31,2023
Licenses:
Alcoholic Beverages
$
7,500.00
$
7,500.00
Other
$
(100.00)
22,999.00
22,899.00
Fees and Permits
20,073.11
20,073.11
Fines and Costs:
Municipal Court
19,319.36
221,210.15
228,879.57
$ 11,649.94
Interest and Costs on Taxes
48,232.53
48,232.53
Interest on Investments and Deposits
128,965.32
128,965.32
Lease of Borough Owned Property
77 760.82
77 760.82
$ 19,219.36
~ 526,740.93
~ 534,310.35
~ 11,649.94
Consolidated Municipal Property Tax
Relief Aid
52,522.86
52,522.86
Energy Receipts Tax
507,030.72
507,030.72
~
559,553.58
~
559,553.58
Uniform Construction Code Fees
$
209,601.00
- $
209,601.00
Shared Services Agreement - Roosevelt Borough
Trash Collection
72,367.00
72,367.00
Shared Services Agreement - Roosevelt Borough
Trash Collection - Tipping Fees
1,942.26
30,151.26
301050.25
21043.27
$
1,942.26
$
102,518.26
$
102,417.25
$
2,043.27
Uniform Fire Safety Act
10,898.58
10,898.58
CATV - Franchise Fee
27,383.16
27,383.16
The Peddie School - Gift
24,000.00
24,000.00
Verizon Franchise Fee
27,868.13
27,868.13
ARP Revenue Loss
125,000.00
125,000.00
Hightstown Housing Authority -
Payment in Lieu of Taxes
331076.39
33,076.39
~ 248,226.26
~
248,226.26
$ 21,161.62
$ 1,646,640.03
$1,654,108.44
$ 13,693.21
Cash Receipts
~ 1,654, 108.44
- 86 -
Exhibit A-11
Page 1 of3
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
CURRENT FUND
SCHEDULE OF 2022 APPROPRIATION RESERVES
FOR THE YEAR ENDED DECEMBER 31. 2023
Balance
Balance
Paid or Char!Jed
December 31, 2022
After
Transfer to
Appropriation
Reserve for
Transfers and
Cash
Accounts
Balance
Reserve
Encumbrances
Encumbrances
Disbursed
Payable
Lapsed
General Administration
Salaries and Wages
$
1,654.43
$
1,654.43
$
1,654.43
Other Expenses
1,718.50
1,718.50
$
225.25
1,493.25
Mayor and Council
Salaries and Wages
0.28
0.28
0.28
Other Expenses
711.00
711.00
711.00
Municipal Clerk
Salaries and Wages
3,981.44
3,981.44
3,981.44
Other Expenses
10,210.24
$
673.99
10,884.23
2,220.79
8,663.44
Elections
Other Expenses
1,443.02
1,443.02
1,443.02
Office Supplies and Paper Products
Other Expenses
2,475.10
4,191.57
6,666.67
4,933.48
1,733.19
Financial Administration
Salaries and Wages
5,405.69
5,405.69
5,405.69
Other Expenses
2,932.72
100.00
3,032. 72
619.99
2,412. 73
Audit Services
Other Expenses
16,000.00
16,000.00
7,218.50
$
8,781.50
Grant Writing and Administration
Other Expenses
2, 710.00
2,710.00
624.80
2,085.20
Central Computer
(Data Processing Tech)
Other Expenses
11,621.20
22,503.00
34,124.20
19,705.30
5,598.00
8,820.90
Tax Collection
Salaries and Wages
5,037.21
5,037.21
5,037.21
Other Expenses
1,539.99
50.00
1,589.99
50.00
1,539.99
Tax Assessment
Salaries and Wages
1,234.39
1,234.39
1,234.39
Other Expenses
177.79
214.89
392.68
214.89
177.79
Interest on Tax Appeals
Other Expenses
100.00
100.00
100.00
Legal Services and Costs
Other Expenses
9,072.22
1,354.25
10,426.47
10,287.06
139.41
Engineering Services
Other Expenses
1,518.44
5,022.50
6,540.94
5,022.50
1,518.44
Historical Commission
Other Expenses
2,081.81
2,081.81
2,081.81
Planning Board
Salaries and Wages
1,399.18
1,399.18
1,399.18
Other Expenses
10,492.59
2,799.66
13,292.25
12,157.72
1,134.53
Insurance
Insurance Deductibles
1,000.00
1,000.00
2,000.00
2,000.00
Unemployment Compensation Insurance
5,000.00
5,000.00
5,000.00
General Liability
27.88
27.88
27.88
Workers Compensation Insurance
0.20
0.20
0.20
Employee Group Health Insurance
63,170.15
63,170.15
446.38
62,723.77
Health Benefit Waiver
20,000.00
20,000.00
20,000.00
Police Department
Salaries and Wages
50,875.07
50,875.07
50,875.07
Other Expenses
38,934.30
46,573.47
85,507.77
56,603.29
886.10
28,018.38
Emergency Management
Other Expenses
2,000.00
2,000.00
2,000.00
Fire Department
Other Expenses
4,236.63
34,664.26
38,900.89
37,132.78
1,768.11
Uniform Fire Safety
Salaries and Wages
3,738.40
3,738.40
3, 738.40
Other Expenses
3,505.54
5,140.39
8,645.93
6,372.20
2,273.73
- 87 -
Exhibit A- 11
Page 2 of3
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
CURRENT FUND
SCHEDULE OF 2022 APPROPRIATION RESERVES
FOR THE YEAR ENDED DECEMBER 31. 2023
Balance
Balance
Paid or Charged
December 31, 2022
After
Transfer to
Appropriation
Reserve for
Transfers and
Cash
Accounts
Balance
Reserve
Encumbrances
Encumbrances
Disbursed
Payable
Lapsed
First Aid Organization:
Other Expenses
$
1,397.27
$ 14,633.85
$
16,031.12
$
14,512.98
$
1,518.14
Municipal Prosecutor
Salaries and Wages
14,400.00
14,400.00
14,400.00
Streets and Roads
Salaries and Wages
14,215.20
14,215.20
14,215.20
Other Expenses
54,250.84
14,931.22
69,182.06
14,656.29
54,525. 77
Snow Removal
Salaries and Wages
4,000.00
4,000.00
4,000.00
Other Expenses
5,000.00
5,000.00
5,000.00
Sanitation/Solid Waste Collection
Salaries and Wages
6,118.10
6,118.10
6, 118.10
Other Expenses
16,875.99
4,926.52
21,802.51
4,951.52
16,850.99
Public Buildings and Grounds
Salaries and Wages
2,017.96
2,017.96
2,017.96
Other Expenses
1,159.35
10,915.09
12,074.44
7,583.94
4,490.50
Recycling
Salaries and Wages
7,904.83
7,904.83
7,904.83
Other Expenses
15,649.55
3,751.24
19,400.79
4,985.74
14,415.05
Vehicle Maintenance
Other Expenses
10,303.31
15,987.31
26,290.62
13,884.87
$
326.03
12,079.72
Community Services/ Condominium Act
Other Expenses
42,000.00
42,000.00
42,000.00
Board of Health
Salaries and Wages
6,601.04
6,601.04
6,601.04
Other Expenses
8,106.91
205.80
8,312. 71
850.66
7,462.05
Environmental Commission
Other Expenses
718.75
2,000.00
2,718.75
2,000.00
718.75
Maintenance of Parks
Salaries and Wages
2,281.62
2,281.62
2,281.62
Recreation & Open Space
Salaries and Wages
262.50
262.50
262.50
Other Expenses
15,111.27
15,111.27
15, 111.27
Cultural Arts Commission
Other Expenses
3,774.90
0.10
3,775.00
3,775.00
Celebration of Public Events:
Other Expenses
1,019.05
1,019.05
1,019.05
Postage and Shipping Charges
Other Expenses
6.49
24.00
30.49
24.00
6.49
Animal Control
Other Expenses
1,675.00
50.00
1,725.00
50.00
1,675.00
Utilities
Gasoline and Diesel Fuel
11,998.01
11,998.01
5,546.85
6,451.16
Electricity
8,845.64
446.73
9,292.37
2,458.63
6,833.74
Telephone
3,378.00
2,431.03
5,809.03
3,007.63
2,801.40
Natural Gas and Heating Oil
1,688.51
2,326.35
4,014.86
3,047.12
967.74
Street Lighting
3,473.82
3,473.82
3,473.82
Landfill Disposal Costs
Other Expenses
194.53
34,911.84
35, 106.37
34,911 .84
194.53
Municipal Court
Salaries and Wages
37.52
37.52
37.52
Other Expenses
28,848.15
63.80
28,911.95
896.14
28,015.81
Construction Official
Salaries and Wages
5,250.36
5,250.36
5,250.36
Other Expenses
4,199.93
539.28
4,739.21
539.28
4,199.93
Housing Code Enforcement
Salaries and Wages
2,357.74
2,357.74
2,357. 74
Other Expenses
926.60
926.60
118.99
807.61
Contribution to:
Public Employees' Retirement System
37,744.00
37,744.00
24,443.51
13,300.49
Social Security System
4,952.47
4,952.47
4,952.47
Defined Contribution Benefit Plan
5,000.00
5,000.00
5,000.00
- 88 -
Length of Service Awards Program
Recycling Tax
Senior Citizen Program
Other Expenses
Senior Citizen Transport - East Windsor
Other Expenses
Health Services
Other Expenses
Landfill Disposal Costs (Roosevelt)
Other Expenses
Dispatch-East Windsor Township
Other Expenses
Vehicle Maintenance Services
Other Expenses
Capital Improvements
Stockton Street Improvement - East Windsor
Reserve for Police SUV Vehicle
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
CURRENT FUND
SCHEDULE OF 2022 APPROPRIATION RESERVES
FOR THE YEAR ENDED DECEMBER 31. 2023
Balance
Balance
Paid or Charged
December 31, 2022
After
Transfer to
Appropriation
Reserve for
Transfers and
Cash
Accounts
Reserve
Encumbrances
Encumbrances
Disbursed
Payable
$
30,000.00
$
30,000.00
$
17,700.00
1,226.75
$
910.74
2,137.49
910.74
45,411.85
45,411.85
33,809.50
2,180.00
2,180.00
200.00
200.00
6,370.08
1,942.26
8,312.34
1,942.26
198,596.00
198,596.00
198,596.00
1,763.44
367.88
2, 131.32
1,275.01
18,049.25
537.50
18,586.75
8,921.25
$
9,665.50
11,587.83
88,230.73
99,818.56
88,230.73
$ 955,135.82
~ 324,421.25
$1,279,557.07
$ 655,690.41
$
35,257.13
Detail of Accounts Payable
Due to Payroll fund - DCRP
$
5,000.00
Due to UCC Trust
5,000.00
Transfer to Accounts Payable:
25,257.13
~ 35,257.13
- 89 -
$
$
Exhibit A-11
Page 3 of3
Balance
Lapsed
12,300.00
1,226. 75
11,602.35
2, 180.00
200.00
6,370.08
856.31
11,587.83
588,609.53
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
CURRENT FUND
SCHEDULE OF PREPAID TAXES
Balance, December 31, 2022
Increased by:
Receipts
Decreased by:
Applied to 2022 Taxes Receivable
Balance, December 31, 2023
- 90 -
Exhibit A-12
$
123,635.29
91,515.27
$
215,150.56
123,635.29
$
91,515.27
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
CURRENT FUND
SCHEDULE OF TAX OVERPAYMENTS
Balance, December 31, 2022
Increased by:
Receipts
Decreased by:
Applied to 2022 Taxes Receivable
Balance, December 31, 2023
$
$
SCHEDULE OF REGIONAL DISTRICT SCHOOL TAX PAYABLE
Balance, December 31, 2022 (Prepaid)
$
Increased by:
Levy Calendar year 2023
Decreased by:
Payments
Balance, December 31, 2023 (Prepaid)
$
- 91 -
Exhibit A-13
4,244.28
7,049.90
1,699.87
9,594.31
Exhibit A-14
(2,899.00)
9,637,902.00
9,637,902.00
(2,899.00~
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
CURRENT FUND
SCHEDULE OF COUNTY TAXES PAYABLE
Balance, December 31, 2022
Increased by:
General County Levy
County Library
County Open Space Preservation
$ 2,883,872.47
297,709.36
134,905.23
Exhibit A-15
$
4,115.80
Due County for Added and Omitted Taxes
None
3,316,487.06
-------
$ 3,320,602.86
Decreased by:
Payments
3,320,647.88
Balance, December 31, 2023 {Prepaid)
$
(45.02)
- 92 -
State Training Fees
Marriage Licenses
EDRS Overpayment
Charge to Fund Balance
Receipts
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
CURRENT FUND
SCHEDULE OF DUE TO STATE OF NEW JERSEY
Balance
Dec. 31. 2022
$
400.00
109.00
$
509.00
- 93 -
Receipts
$
9,996.00
1,125.00
$ 11,121.00
$
475.00
10,646.00
$ 11,121.00
Disbursements
$ 7,869.00
925.00
$ 8,794.00
Exhibit A-16
Balance
Dec. 31. 2023
$ 2,127.00
600.00
109.00
$ 2,836.00
Balance, December 31, 2022
Receipts:
Grants Receivable
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GRANT FUND
SCHEDULE OF CASH
$
41,425.38
Reserve for Grants, Unappropriated
2,947.00
Refunds
2,213.21
Interest Earned
813. 77
Disbursements:
Reserve for Grants, Appropriated
$
71,910.80
Interfund - Current Fund-
813.77
Miscellaneous
210.00
Balance, December 31, 2023
- 94 -
Exhibit A-17
$ 34,971.68
47,399.36
$
82,371.04
72,934.57
$
9,436.47
(!)
U1
Clean Communities
Municipal Court Alcohol Education and Rehabilitation Fund
Small Cities CDBG Block Grant
Recycling Tonnage Grant
Body Armor Grant - State
Street Planting Grant
Stormwater Mapping Grant
ARP Firefighter Award
Mercer at Play
Mercer County NJSCA Local Arts Prog.
NJ Body Worn Camera Grant
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GRANT FUND
SCHEDULE OF GRANTS RECEIVABLE
Balance
Dec. 31, 2022
$ 105,760.00
14,000.00
25,000.00
321608.00
$ 177,368.00
2023
Budget
Revenue
Realized
$
11,401.94
7,023.44
1,252.04
25,000.00
31,000.00
8,000.00
-
$
83,677.42
Cash Received:
By Grant Fund
By Current Fund
Received
$
11,401.94
7,023.44
15,000.00
31,000.00
8,000.00
321608.00
$ 105,033.38
$
41,425.38
631608.00
$ 105,033.38
Exhibit A-18
Transfer
From
Unappropriated
Balance
Reserve
Dec. 31, 2023
$ 105,760.00
$
1,252.04
14,000.00
10,000.00
25,000.00
-
$
1,252.04
$ 154,760.00
<.O
0)
Drunk Driving Enforcement Fund
Clean Communities
Municipal Court Alcohol Education and
Rehabilitation Fund
Small Cities CDBG Block Grant
Recycling Tonnage Grant
Body Armor Grant
Mercer County NJSCA Local Arts Prog.
Mercer at Play
Click It or Ticket
JIF Safety Grant
Statewide JIF Grant
Stormwater Mapping Grant
NJ Body Worn Camera Grant
ARP Firefighter Award
Statewide JIF Safety Grant
Sustainable NJ Capacity Building Stipend
Mercer County NJSCA Local Arts Prog.-2023
Drive Sober
Bulletproof
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GRANT FUND
SCHEDULE OF RESERVE FOR GRANTS - APPROPRIATED
Balance
Dec. 31 2022
$
16,774.29
31,422.81
15,920.69
113,760.00
50,407.20
4,635.03
28,469.00
4,455.45
2,645.88
7,455.00
373.88
105.50
$ 276,424.73
Transfer from
2023
Budget
$ 11,401.94
7,023.44
1,252.04
25,000.00
31,000.00
8,000.00
$ 83,677.42
$
Prior Year
Encumbrances
2,000.00
25,153.00
$
27 ,153.00
Cash Disbursed :
By Grant Fund
By Current Fund
Adjustments:
Cash Received by CF:
Click it or Ticket
Sober
DDE
Bulletproof
Disbursed
$
19,659.65
200.00
6,649.60
1,252.04
3,905.25
7,000.00
25,153.00
31,000.00
6,720.00
1,371.26
$ 102,910.80
$
71,910.80
31,000.00
$ 102,910.80
Due to Current Fund
Adjustment
$
(2,885.36)
(7,000.00)
(6,720.00)
(2,682.91)
$ (19,288.27)
$
7,000.00
6,720.00
2,213.21
1,395.83
1,959.83
$
19,288.87
Current Year
Encumbrances
$
3,000.00
200.00
1,311.65
$
4,511.65
Exhibit A-19
Balance
Dec. 31. 2023
$
42,624.75
15,920.69
113,760.00
49,781.04
529.78
28,469.00
4,455.45
2,645.88
25,000.00
7,455.00
373.88
105.50
8,000.00
$ 299,120.97
Grant
NJ Environmental Comm
American Rescue Plan
Mercer County Arts
Safety Incentive Award
Body Armor Grant
JIF Safety Grant
Statewide Safety Grant
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GRANT FUND
SCHEDULE OF RESERVE FOR GRANTS - UNAPPROPRIATED
Balance
Dec. 31, 2022
Received
$
2,000.00
174,269.01
3,000.00
250.00
1,252.04
2,712.00
$
2,947.00
$ 183,483.05
$
2,947.00
Detail of Transfer
Water-Sewer Utility Operating Fund
Current Fund
Grants Received
- 97 -
Transfer
$ 174,269.01
1,252.04
$ 1751521.05
$
49,269.01
125,000.00
1,252.04
$ 175,521.05
Exhibit A-20
Balance
Dec. 31. 2023
$
2,000.00
3,000.00
250.00
2,712.00
2,947.00
$
10,909.00
TRUST FUND
Animal Control
Balance, December 31, 2022
$
889.03
Increased by Receipts:
Due to State of New Jersey
$
295.20
Interest Earned
Reserve for Animal Control
2,462.40
Redemption of Tax Title Liens
Regional Contribution Agreement • Manalapan
Law Enforcement Fund
Public Defender
Payroll Deposits
Miscellaneous • Reserves
Housing Trust
Escrow Fees
2,757.60
$ 3,646.63
<.O
Decreased by Disbursements:
00
N .J. State Dept. of Health
608.20
Expenditures Per R.S. 4:19-15. 11
1,276.55
Due from NJ-GIT
Redemption of Tax Title Liens
Public Defender
Housing Trust
Unemployment
Interfund · Current Fund
Payroll Deductions
Miscellaneous Trust Funds
Escrow Fees
28.00
1,912.75
Balance, December 31, 2023
_U,733.!ill_
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
TRUST FUND
SCHEDULE OF TRUST CASH ·TREASURER
Other Trust
Escrow Trust
$
548,115.00
$
87,705.76
$ 146,478. 74
4,167.10
1,521.51
3,605.97
237,407.16
14,235.47
~ 114,707.85
407 415.95
114 707.85
$
955,530.95
$ 202,413.61
134,710.73
2,260.47
42.50
232,380.08
123,734.67
369,393.78
123,734.67
$
586,137.17
$
78,678.94
Exhibit B-1
Pav roll
Unemployment Trust Fund
$
78,331.80
$
32,664.84
$
5,745.22
$
918.40
5,218,718.44
5,224,463.66
918.40
$ 5,302, 795.46
$
33,583.24
38,218.14
1,631.62
5,745.22
5,205,567.13
5,249,530.49
1,631.62
$
53,264.97
$
31,951.62
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
ANIMAL CONTROL TRUST - TRUST FUND
SCHEDULE OF DUE TO N.J. STATE DEPARTMENT OF HEALTH
Balance, December 31, 2022
$
Increased by:
State Registration Fees - 2023
$
Decreased by:
Disbursed to State
Balance, December 31, 2023
$
- 99 -
Exhibit B-2
343.20
295.20
638.40
608.20
30.20
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
ANIMAL CONTROL TRUST - TRUST FUND
Exhibit B-3
SCHEDULE OF RESERVE FOR ANIMAL CONTROL FUND EXPENDITURES
Balance, December 31, 2022
Increased by:
License Fees Collected - 2023 Licenses
Collected Cash Receipts
$
2,462.40
Due From - Current Fund
891.00
Decreased by:
Expenditures Per R.S. 4: 19-15.11
Balance, December 31, 2023
Municipal Fees Collected
2021
2022
- 100 -
Amount
$
2,574.60
2,615.00
$
5,189.60
$
286.15
3,353.40
$
3,639.55
1,276.55
$
2,363.00
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
TRUST FUND
Exhibit B-4
SCHEDULE OF DEPOSITS FOR REDEMPTION OF TAX SALE CERTIFICATES
Balance, December 31, 2022
$
16,560.37
Increased by:
Deposits for Redemption
$
102,303.31
Transfer from TIL Premium
44,175.43
146,478.74
$
163,039.11
Decreased by:
Redemption of Tax Title Liens
134,710.73
Balance, December 31, 2023
$
28,328.38
Exhibit B-5
SCHEDULE OF REGIONAL CONTRIBUTION AGREEMENT - MANALAPAN
Balance, December 31, 2022
$
141,418.36
Increased by:
Interest Earned
4,167.10
Balance, December 31, 2023
$
145,585.46
- 101 -
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
TRUST FUND
SCHEDULE OF DUE FROM - CURRENT FUND
Balance, December 31, 2022 Due from
Balance, December 31, 2023 Due from
Exhibit B-6
$
233,765.74
$
233,765.74
Exhibit B-7
SCHEDULE OF RESERVE FOR LAW ENFORCEMENT FUND
Balance, December 31, 2022
$
51,633.82
Increased by:
Interest Earned
1,521.51
Balance, December 31, 2023
$
53,155.33
- 102 -
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
TRUST FUND
SCHEDULE OF RESERVE FOR PUBLIC DEFENDER
Balance, December 31, 2022
Increased by:
Interest Earned
$
675.57
Fees
2,930.40
Decreased by:
Transfer to Current Fund Interest
675.47
Cash Disbursed
1,585.00
Balance, December 31, 2023
SCHEDULE OF UNEMPLOYMENT TRUST FUND
Balance, December 31, 2022
Increased by Receipts:
Appropriation Reserve 2022:
Current Fund
Water-Sewer Operating
Employee Payroll Deductions
Interest Earned
Decreased By:
Cash Disbursed
Balance, December 31, 2023
- 103 -
$
5,000.00
2,000.00
7,916.45
918.40
Exhibit B-8
$
21,734.47
3,605.97
$
25,340.44
2,260.47
$
23,079.97
Exhibit B-9
$
67,791.35
15,834.85
83,626.20
1,631.62
$
81,994.58
Federal Withholding Tax
FICA
State of New Jersey Withholding Tax
Public Employees Retirement System
Police and Firemen's Retirement System
State Unemployment Tax (EE)
State Unemployment Tax (ER)
State Disability (ER)
State Disability (EE)
State FU (EE)
DCRP
Union Dues
Garnishment
Employee Health Benefit Contribution
Employee Dental Contribution
Disability
Life Insurance
Accident Inurance
Critical Illness Insurance
AFA Cancer
Deferred Compensation:
Great West
Equiv est
AFLAC
Miscellaneous
PERS Annnual Bill
PFRS Annual Bill
Net Pay
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
PAYROLL FUND
SCHEDULE OF PAYROLL DEDUCTIONS PAYABLE
Balance
Increased b:t:
December 31,
Borough's
Payroll
2022
Share
Deductions
$
455,538. 74
$ 224,373.94
224,373.94
162,636.76
$
10,881.49
174,178.78
16,526.19
191,688.97
133.13
7,916.45
2,512.13
266.27
4,468.47
1,298.60
1,298.60
2,438.67
7,970.28
13,034.02
4,721.00
59,678.56
200,648.04
13,920.24
4,714.08
2,608.00
1,800.24
565.20
200.40
4,950.00
21,960.00
204.00
8,309.35
6,642.69
320,568.00
490,810.00
2,621,567.12
$
38J13.63
$ 239,324.82
$ 4,987,363.90
2023 Appropration Reserve
$
2,970.28
2022 Appropration Reserve
5,ooo.oo
$
7,970.28
Cash Received
231,354.54
$ 239,324.82
Allocat~d fQr:
Due to Trust Other Fund
Cash Disbursed
- 104 -
Exhibit B-10
Decreased b:t
Balance
December 31,
Disbursements
2023
$ 455,348.25
$
190.49
446,432.40
2,315.48
162,575.52
61.24
170,237.84
14,822.43
188,699.06
19,516.10
8,049.58
2,452.46
59 .67
4,687.01
47.73
1,298.60
(0.00)
3,158.49
578.78
21,004.30
4,721.00
59,678.56
200,648.04
13,920.24
4,714.08
2,608.00
1,800.24
565.20
200.40
4,950.00
21,960.00
204.00
625.19
14,326.85
320,568.00
490,810.00
2,621,567.12
~ 5,213,483.58
$ 51,918.77
$
7,916.45
5,205,567 .13
$ 5,213,483.58
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
TRUST FUND
SCHEDULE OF MISCELLANEOUS TRUST FUNDS
Balance
Increased by
Decreased by
Dec. 31, 2022
ReceiQts
Disbursements
Celebration of Public Events:
Memorial Day Parade Donation
$
2,639.40
$
200.00
Donations:
Animal Welfare
1,289.28
Historical Site
798.71
National Night Out
4,414.37
$
1,400.00
3,220.00
Peddie Dam Footbridge
1,059.48
Franklin St. Project Lighting
6,062.93
Skatepark
19,345.87
Cultural Arts
18,561.37
1,460.00
3,100.00
Environmental Trees
2,056.16
Environmental Donation
74.00
American Diner Escrow
788.50
Regan Redevelopment
142.00
Replace Downtown Coach Lighting
2,833.20
RBE Performance
2,309.05
Parking Offense
Adjudication Act
1,231.00
142.00
Parks and Recreation Donations:
Exercise Class
290.38
Recreation Trips
135.00
Triathlon
50,821.12
20.00
9,738.38
Shakespeare in the Park
3,541.67
6,124.00
6,251.09
Dawes
34,369.06
14,022.68
5,435.70
Recaptured Funds Housing Rehabilitation
1,703.00
Recycling
42,930.43
11,137.60
1,500.64
Recycling-Grass Collection Program
7,104.24
Storm Recovery Fund
53,047.58
4,702.25
Special Duty Police
44,928.09
68,090.00
53,956.00
Tax Sale Premium
108,392.73
135,010.88
134,426.36
Uniform Fire Safety Act
6,975.03
Reserve for Insurance Refunds
90,974.68
9,849.66
Workman's Compensation
9,581.03
$ 518,399.36
$ 237,407.16
$ 232,380.08
- 105 -
Exhibit B-11
Balance
Dec. 31, 2023
$
2,439.40
1;289.28
798.71
2,594.37
1,059.48
6,062.93
19,345.87
16,921.37
2,056.16
74.00
788.50
142.00
2,833.20
2,309.05
1,373.00
290.38
135.00
41,102.74
3,414.58
42,956.04
1,703.00
52,567.39
7,104.24
48,345.33
59,062.09
108,977.25
6,975.03
81,125.02
9,581.03
$ 523,426.44
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
TRUST FUND
SCHEDULE OF RESERVE FOR ESCROW FEES
Balance, December 31, 2022
Increased by:
Receipts
Decreased by:
Disbursements
Balance, December 31, 2023
- 106 -
Exhibit B-12
$
87,705.76
114,707.85
$
202,413.61
123,734.67
$
78,678.94
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
TRUST FUND
SCHEDULE OF HOUSING TRUST
Balance, December 31, 2022
Increased by:
Payments in Lieu of Construction
$ 13,560.00
Interest Earned
675.47
Decreased by:
Cash Disbursed
Balance, December 31, 2023
- 107 -
Exhibit B-13
$
18,446.57
14,235.47
$
32,682.04
42.50
$
32,639.54
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
TRUST FUND
SCHEDULE OF LOSAP
(LENGTH OF SERVICE AWARD PROGRAM)
(UNAUDITED)
Balance, December 31, 2022
Increased by:
Due From Borough - Municipal Contribution
Appreciation on Fair Value of Investments
Decreased by:
Withdrawals
Account Charge
Balance, December 31, 2023
- 108 -
$
20,250.00
120,893.85
$
40,064.38
1,456.98
Exhibit B-14
$ 742,008.11
141,143.85
$ 883,151.96
41,521.36
$ 841,630.60
GENERALCA~TALFUND
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF GENERAL CAPITAL FUND CASH-TREASURER
Balance, December 31, 2022
Increased by Receipts:
Current Fund Appropriation -
Capital Improvement Fund
$
30,000.00
Premium on Sale of Bond Anticipation Notes
8,857.20
Interfund -
Water-Sewer Utility Operating Fund
400,000.00
Bond Anticipation Notes
1,084,750.00
Various Reserves
1,595,000.00
Grants Receivable
381,750.42
Decreased by Disbursements:
Improvement Authorizations
$ 1,426,003.45
Capital Improvement Fund
500.00
Various Reserves
21,778.53
Interfund - Current Fund
2,062,857.62
Balance, December 31, 2023
- 109 -
Exhibit C-2
$
14,388.44
3,500,357.62
$ 3,514,746.06
3,511,139.60
$
3,606.46
BOROUGH OF HIGHTSTOWN
Exhibit C-3
COUNTY OF MERCER
STATE OF NEW JERSEY
GENERAL CAPITAL FUND
ANALYSIS OF CAPITAL FUND CASH AND INVESTMENTS
Recei~ts
Disbursements
Transfers
Balance
Bond Anticipation
Improvement
Balance
Dec 31 2022
Notes/ Miscellanea
Miscellaneous
Authorizations
From
IQ
Dec 31 2023
Fund Balance
$
954.30
$
8,857.20
$
9,811.50
Federal and State Receivable - Current Fund
(150,000.00)
(150,000.00)
Capital Improvement Fund
214,522.50
30,000.00
$
500.00
$
23,600.00
220,422.50
Reserve for Encumbrances
240,350 .87
$
650,878.40
891,229.27
Interfunds:
Current Fund
(424,008.94)
2,062,857 .62
(2,486,866.56)
Water-Sewer Utility Capital Fund
(297,071.10)
(297,071.10)
Water-Sewer Utility Operating Fund
400,000.00
400,000.00
Various Reserves
189,213.64
1,595,000.00
21,778.53
1,762,435.11
Reserve to Pay Notes Ord#18-20
15,211.88
15,211.88
~
l moroyement Authorizatiqns
El.!rilQSl:
04-17
Acquisition of Capacity Rights - JCP&L
16,784.33
16,784.33
05-04
Mercer Street Revitalization Project
17,182.52
17,182.52
05-24
Peddie Lake Dam Improvements
(231.26)
(231.26)
05-34
Streetscape/Main Street Redevelopment Area
11,936.46
11,936.46
07-26
Police Department Equipment
618.17
618.17
08-01
Westerlea Avenue Improvements
2,062.34
2,062.34
09-20
Stockton Street Historic District Improvements
1,677.82
1,677.82
10-02
Reconstruction of Leshin Lane
640.46
640.46
10-16
Summit Street Sidewalk Improvements
(267.71)
(267.71)
-->.
11-05
Milling and Paving Various Roads
6,886.61
6,886.61
-->.
12-04
Hurricane Irene Damage Emergency
(625.25)
(625.25)
0
12-13
Various Capital Improvements
28,946.23
28,946.23
12-15
Communication Equipment - Fire Dept., First Aid
1,100.00
1,100.00
13-07,15-14, 19-04
Peddie Lake Dam Walking Bridge Improvements
64,377.07
$
45,500.00
18,877 .07
13-22
Public Safety Equipment
11,048.00
11,048.00
13-23,
Road Improvements to Park Avenue, Greeley St.
15-06
and Glen Brook Place
2,043.29
2,043.29
14-06
Various capital Improvements including
Document Restoration
14,887.37
14,887.37
14-13
Various Capital Improvements
3,342.67
3,342.67
15-07
Road Improvements to Park Way, Grant St.
and Hutchison Street
2,670.80
2,670.80
15-11
Acquisition of Aerial Ladder Truck
953.22
953.22
15-15,17-15,22-24
Improvements to Stockton St. and Joseph St.
(288,916.39)
108,162.12
3,468.76
(184,223.03)
15-20
Acquisition of Automated Garbage Truck
6,181 .10
6,181.10
16-08
Police Vehicles, Public Safety Equipment
5,624.53
5,624.53
16-12
Rehabilitation of East Ward Street
(35,973.41)
(35,973.41)
17-09, 21-10
Retaining Wall, First Ave Improvements
(97,785.57)
150,000.00
296,978.19
700.00
(244,063.76)
17-12
Police, Fire, DPW Court Equipment
10,392.41
10,392.41
17-17, 19-07
Improvements to Maple Avenue and Sunset Ave
(26,943.84)
800.00
(27,743.84)
18-12
Acquisition of Land - YMCA
26,993.50
26,993.50
18-18
Various Capital Improvements - Public Safety
8,422.11
8,422.11
18-20
Improvements to Lincoln Ave., Hagemount Ave.
and Rocky Brook Court
95,357.91
95,357.91
19-10
Design Costs - Municipal Complex
2,934.01
19,057.12
18,657.12
2,534.01
19-20
Various Capital Improvements Police, Fire & DPW
19,980.04
300.00
19,680.04
20-05
Springcrest, Spruce Ct. and Glen Drive
(25,225.81)
84,750.00
55,026.05
4,498.14
20-15
Crosswalk Signal and Fire Dept Equipment
61,886.22
15,462.84
15,462.84
61,886 22
21-02
Improvements Various Roads- Hauser Ave,
Bennett Pl., Railroad Ave. Dey St,
143,620.82
273,588.30
697,965.60
142,679.88
76,650.43
(346,785.93)
22-11
Improvement Various Roads -Orchard, Clover & s . Main
89,314.70
89,314.70
22-21
Public Safety Jmprovements Police and Fire
43,320.00
600,000.00
122,898.62
448,912.07
71,509.31
Park and Recreation, and E. Ward St Bridge
23-02
Improvements to Maxwell Avenue
100,000.00
24,075.00
2,762.50
73,162.50
23-12
Various Capital Improvements
150,000.00
144,471.27
167,994.34
20,400.00
(142,065.61)
23-22
Improvements to the Sluice Gate
3,200.00
3,200,00
$
14,388.62
$ 3.500.357.62
$ 2,085,136.15
$ 1,426,003.45
$
785,948.79
$
785.948.79
$
3,606.64
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GENERAL CAPITAL FUND
Exhibit C-4
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - FUNDED
Balance, December 31, 2022
Decreased by:
2023 Budget Appropriation to Pay Serial Bonds
2023 Budget Appropriation to Pay Loans
Balance, December 31, 2023
- 111 -
$ 3,828,808.57
$
8,592.04
480,000.00
488,592.04
$ 3,340,216.53
.Q&.NQ,_
05-24,09-13
09-20
10-02
10-16
11-05
12-04
12-13
13-07 ,15-14,19-04
13-23,15-06
14-06
15-07
15-11
15-15,17-15, 22-24
16-12
17-09, 21-10
17-12
17-17,19-07
18-18
......
18-20
......
rv
19-10
19-20
20-05
20-15
21-02
22-11
22·21
23-02
23-12
23-22
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE DF DEFERRED CHARGES TD FUTURE TAXATION - UNFUNDED
Balance
Authorized
Grants
BAN
Imoroyement Descrjotlon
'1e,. 31
;<QZ~
~
Received
~
Peddie Lake Dam Improvements
$
550.00
Stockton Street Historic District Improvements
16,899.57
Reconstruction of Leshin Lane
13,000.00
Summit Street Sidewalk Improvements
526.45
Milling and Paving Various Roads
14,500.00
$
800.00
Hurricane Irene Damage Emergency
625.25
Various Capital Improvements
500.00
Peddie Lake Dam Walking Bridge Improvements
8,702.67
Road Improvements to Parle Avenue, Greeley St. & Glen Brook Pl.
28,210.00
700.00
Various Capital Improvements including Document Restoration
9,334.00
Road Improvements to Park Way, Grant St. & Hutchison Street
35,500.00
600.00
Acquisition of Aerial Ladder Truck
300.00
Improvements to Stockton Street and Joseph Street
534,856.15
$ 108,162.12
6,000.00
Rehabilitation of East Ward Street
90,000.00
Retaining Wall, First Ave Improvements
554,000.00
7,900.00
Police, Fire, DPW Court Equipment
40.00
Improvements to Maple Avenue and Sunset Avenue
330,000.00
17,400.00
Various Capital Improvements - Public Safety
180,500.00
8,300.00
Improvements to Lincoln Ave., Hagemount Ave. & Rocky Brook Ct.
100,000.00
5,300.00
Design Costs - Municipal Complex
476,000.00
16,500.00
Various Capital Improvements Police, Fire & DPW
185,500.00
13,250.00
Springcrest, Spruce Ct. and Glen Drive
358,000.00
Crosswalk Signal and Fire Dept Equipment
100,000.00
Improvements Various Roads- Hauser Ave, Bennet Pl.
Railroad Ave. Dey St.
600,368.00
Improvements Various Roads- Orchard, Clover and 5 . Main
650,000.00
Public Safety Improvements Police and Fire, Parks and Recreation,
and E. Ward St Bridge
775,780.00
Improvements to Maxwell Avenue
$
233,730.00
Various Capital Improvements
407,600.00
Improvement to the Sluice Gate
61,800.00
$ 5,063,692.09
$
703,130.00
$ 108,162.12
$
76,750.00
Analvsis of Balance
Bond
Balance
Anticipation
D~c 31 2Q2;J
NQtes
Exg~nQitures
$
550.00
$
16,899.57
13,000.00
526.45
13,700.00
$
13,700.00
625.25
500.00
8,702.67
27,510.00
12,300.00
9,334.00
34,900.00
9,900.00
300.00
420,694.03
234,000.00
90,000.00
546,100.00
292,100.00
40.00
312,600.00
312,600.00
172,200.00
172,200.00
94,700.00
94,700.00
459,500.00
459,500.00
172,250.00
172,250.00
358,000.00
357,750.00
100,000.00
100,000.00
600,368.00
500,000.00
650,000.00
90,000.00
775,780.00
600,000.00
233,730.00
100,000.00
407,600.00
150,000.00
61,800.00
$ 5,581,909.97
$ 3,!i71,000.00
$
Improvement Authorizations - Unfunded
Less: Unexpended Proceeds of Notes
11-05
$
13-23,15-06
15-07
17-17, 19-07
18-20
19-10
19-20
20-15
17-12
20-05
22-21
23-12
Adjustment
231.26
267.71
625.25
184,223.03
35,973.41
142,065.61
363,386.27
6,886.61
2,043.29
2,670.80
8,422.11
94,700.01
2,934.01
19,680.07
61,886.22
10,312.41
4,498.14
71,509.31
73,162.50
64.423.38
Exhibit C-5
Unexpended
Balance of
Improvement
Authorizations
~
$
318.74
16,899.57
13,000.00
258.74
500.00
8,702.67
15,210.00
9,334.00
25,000.00
300.00
2,471.00
54,026.59
254,000.00
40.00
250.00
100,368.00
560,000.00
175,780.00
133,730.00
115,534.39
61,800.00
$1,547 .523.70
$1,970,652.56
423,128.86
$1,547,523.70
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF GRANTS RECEIVABLE
Receivables not Offset with Reserves:
NJDOT:
Rehabilitation of East Ward Street (16-12)
Retaining Wall, First Ave Improvements (17-09, 21-10)
Improvements to Maple Ave and Sunset Ave (17-17, 19-07)
Improvements to Maxwell St. (23-02)
Springcrest, Spruce Ct. and Glen Drive (20-05)
Improvements to Various Road:
Hauser Avenue, Bennet Place (21-02)
Railroad and Dey (21-02)
Orchard, Clover & S. Main (22-11)
Receivables Offset with Reserves:
NJDOI:
Peddie Lake Dam Walking Bridge
Improvements (13-07, 15-14, 19-04)
Improvements to Stockton Street
and Joseph Street(15-15, 17-15, 22-24)
Total
$
Balance
Dec. 31. 2022
75,000.00
68,795.00
50,000.00
150,000.00
500,000.00
176,177.25
500,000.00
$ 1,519,972.25
$
8,702.67
227,419.32
$
236,121.99
$ 1<756,094.24
- 113 -
Increased
$ 621,270.00
$ 621,270.00
$
$ 621,270.00
Cash Received
Decreased
$ 273,588.30
$ 273,588.30
~ 108,162.12
$ 108,162.12
$ 381J50.42
$ 381J50.42
Exhibit C-6
Balance
Dec. 31. 2023
$
75,000.00
68, 795.00
50,000.00
621,270.00
150,000.00
226,411.70
176,177.25
500,000.00
$ 1,867,653.95
$
8, 702.67
119,257.20
$
127,959.87
$ 1,995,613.82
Reserve for John and Mary Hight Sculpture
Reserve for Donations
Reserve for Municipal Facility
Reserve for Housing Rehabilitation
Reserve for Municipal Facility-FEMA
Police Vehicle Purchase
Payment of Notes #18-20
Reserve for Municipal Building Insurance
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF VARIOUS RESERVES
Balance
Dec. 31. 2022
Increased
$
150.00
50.00
4,859.79
47.00
178,195.85
5,911.00
15,211.88
$ 1,595,000.00
$ 204,425.52
$ 1,595,000.00
- 114 -
Exhibit C-7
Balance
Decreased
Dec. 31. 2023
$
150.00
50.00
4,859.79
47.00
$
16,540.00
161,655.85
5,238.53
672.47
15,211.88
1,595,000.00
$
21,778.53
$1,777,646.99
Exhibit C-8
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
2023 Authorizations
Deferred
Refunds/
Charges
Grants
Ord.
Ordinance
Balance, Dec. 31. 2022
Encumbrances
to Future
and Other
Paid or
Encumbrances
Balance. Dec. 31. 2023
~
Improvement Description
Qfilll
Amount
.El!.ruleQ
Unfunded
Q~!;;. 31 2Q22
~ c;ontributiQIJS
~ D~ ;n 2023
~
Unfunded
04-17
Acquisition of Capacity Rights - JCP&L
8/02/2004
$ 100,000.00
$
16,784.33
$
16,784.33
05-04, 09-13
Mercer Street Revitalization Project
2/07/2005
450,000.00
17,182.52
17,182.52
05-24
Peddie Lake Dam improvements
7/05/2005
166,250.00
$
318.74
$
318.74
05-34
Streetscape/Main St. Redevelopment Area
10/17/2005
450,000.00
11,936.46
11,936.46
07-26
Police Department Equipment
11/19/2007
62,000.00
618.17
618.17
08-01
Westerlea Avenue Improvements
1/22/2008
332,500.00
2,062.34
2,062.34
09-20
Stockton St. Historic District Improvements
9/21/2009
1,840,000.00
1,677.82
16,899.57
1,677.82
16,899.57
10-02
Reconstruction of Leshin Lane
2/01/2010
568,000.00
640.46
13,000.00
640.46
13,000.00
10-16
Summit Street Sidewalk Improvements
9/20/2010
180,000.00
258.74
258.74
11·05
Milling and Paving Various Roads
6/06/2011
432,000.00
6,886,61
6,886.61
12-13
Various Capital Improvements
8/20/2012
262,000.00
28,946.23
500.00
$
26,382.60
$
26,382.60
28,946.23
500.00
12-15
Communication Equip. - Fire Dept., First Aid
9/18/2012
35,000.00
1,100.00
1,100.00
13-04
Road Imprv. Grape Run and Pershing Ave
2/19/2013
485,000.00
13-07,
Peddie Lake Dam
4/01/2013
210,000.00
15-14,
Walking Bridge
8/03/2015
331,000.00
19-04
Improvements
3/04/2019
198,791.00
73,079. 74
$
45,500.00
27,579.74
13-22
Public Safety Equipment
9/03/2013
165,000.00
11,048.00
11,048.00
13-23,
Road Improvements to Park Avenue,
11/18/2013
682,000.00
15-06
Greeley St. and Glen Brook Place
4/20/2015
215,000.00
17,253.29
17,253.29
--"
14-06
Various Capital Improvements including
--"
Document Restoration
3/17/2014
220,000.00
14,887 .37
9,334.00
14,887.37
9,334.00
01
14-13
Various Capital Improvements
7/21/2014
170,000.00
3,342.67
3,342.67
15-07
Road Improvements to Park Way, Grant St.
and Hutchison Street
4/20/2015
619,000.00
27,670.80
27,670.80
15-11
Acquisition of Aerial Ladder Truck
6/01/2015
1,000,000.00
953.22
300.00
953.22
300.00
15-15,
Improvements to Stockton St.
8/21/2015
430,000.00
17-15,
& Joseph St.
11/ 06/2017
132,000.00
22-24
12/01/2023
65,000.00
5,939.76
8,403.07
3,468.76
8,403.07
2,471.00
15-20
Acquisition of Automated Garbage Truck
9/08/2015
325,000.00
6,181.10
6,181.10
16-08
Police Vehicles, Public Safety Equipment
3/07/2016
140,000.00
5,624.53
5,624.53
16-12
Rehabilitation of East Ward Street
4/18/2016
550,000.00
39,026.59
90,000.00
39,026.59
90,000.00
17-09, 21-10
Retaining Wall, First Ave Improvements
8/21/2007
850,000.00
375,009.43
39,094.03
296.978.19
38,394.03
78,731.24
17-12
Police, Fire, DPW Court Equipment
9/05/2017
268,000.00
10,392.41
40.00
10,392.4 1
40.00
17-17,
Improvements to Maple Ave and
11/20/2017
540,000.00
19-07
Sunset Ave
5/20/2019
65,000.00
23,056.18
800,00
22,256.18
18-12
Acquisition of Land - YMCA
6/18/2018
725,000.00
26,993.50
26,993.50
18-18
Various Capital Impro. - Public Safety
9/17/2018
189,600.00
8,422.11
8,422.11
18-20
Improvements to Lincoln Ave., Hagemount
Ave. and Rocky Brook Court
11/05/2018
900,000.00
95,357.5 1
95,357.51
19-10
Design Costs · Municipal Complex
6/17/2019
500,000.00
2,934.01
74,357.90
19,057.12
55,700.78
2,534.01
19-20
Various Capital Improvements Police, Fire
And DPW
11/18/2019
195,000.00
19,980.04
300.00
19,680.04
20-05
Springcrest, Spruce Ct. and Glen Drive
7/20/2020
873,000.00
59,774.19
55,026.05
4,748.14
20-15
Crosswalk Signal & Fire Dept Equipment
12/08/2020
105,000.00
61,886.22
15,462.84
15,462.84
61,886.22
21-02
Improvements VaL Roads- Hauser Ave,
Bennet Pl. and Railroad Ave. Dey St.
3/15/2021
1,630,000.00
319,798.07
600,368.00
76,650.43
697,965.60
142,679.88
156,171.02
22--11
Improvements Various Roads - Orchard,
Clover and S. Main
2/22/2022
1,150,000.00
499,314.70
650,000.00
499,314 70
650,000.00
22·21
Public Safety Improvements Police and Fire,
Parks and Recreation, and E. Ward St
Bridge
12/19/2022
819,100.00
43,320.00
775,780.00
122,898.62
448,912.07
247,289.31
23-02
Improvements to Maxwell Avenue
2/21/2023
855,000.00
$
233,730.00
s
621,270.00
24,075.00
2,762.50
594,432.50
233,730.00
23-12
Various Capital Improvements
7/17/2023
428,000.00
407,600.00
20,400.00
144,471.27
167,994.34
115,534.39
23-22
Improvement to the Sluice Gate
12/15/2023
65,000.00
61,800.00
3,200.00
3,200 00
61,800.00
$ 1.061.830.49
$ 2.934.048.94
$ 240.350.87
$
703,130.00
$
644.870.00
$ 1,426.003.45
s 891,22'1. .. n
$ 1,296,344.92
$ 1,970,652.66
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF RESERVE FOR CAPITAL IMPROVEMENT FUND
Balance, December 31, 2022
Increased by:
2022 Budget Appropriation
Decreased by:
Appropriated to Finance Improvement Authorizations
Balance, December 31, 2023
- 116 -
Exhibit C-9
$ 214,522.50
30,000.00
$ 244,522.50
23,100.00
$ 221,422.50
E~hibit C-10
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF BOND ANTICIPATION NOTES
Date of
Ord.
Date of
Original
Date of
Date of
Interest
Balance
Balance
N2.,_
Descrjptjon
~
~ --1ill!.e._
Mfilllrill'
~ Dec 31. 2022
~ ~ Dec. 31. 2023
11-05
Milling and Paving Various Roads
6/06/2011
12/30/2020
9/27/2023
6/27/2024
4.2500%
$
14,500.00
$
800.00
$
13,700.00
13-23/15-06
Road Improvements to Park Ave, Greeley
Street and Glen Brook Place
9/03/2013
12/30/2020
9/27/2023
6/27/2024
4.2500%
13,000.00
700.00
12,300.00
15-07
Road Improvements to Park Way, Grant St.
and Hutchison Street
4/20/2015
12/30/2020
9/27/2023
6/27/2024
4.2500%
10,500.00
600.00
9,900.00
15-15,17-15, 22-24 Improvements to Stockton St. and Joseph St.
8/21/2015
12/30/2020
9/27/2023
6/27/2024
4.2500%
100,000.00
6,000.00
94,000.00
15-15,17-15, 22-24 Improvements to Stockton St. and Joseph St.
9/29/2022
9/27/2023
6/27/2024
4.2500%
140,000.00
140,000.00
17-09, 21-10
Retaining Wall, First Ave Improvements
8/21/2017
12/30/2020
9/27/2023
6/27/2024
4.2500%
150,000.00
7,900.00
142,100.00
17-09
Retaining Wall, First Ave Improvements
9/27/2023
9/27/2023
9/27/2023
6/27/2024
4.2500%
$
150,000.00
150,000.00
17-17,19-07
Improvements to Maple Ave and Sunset Ave
11/20/2017
12/30/2020
9/27/2023
6/27/2024
4.2500%
330,000.00
17,400.00
312,600.00
18-18
Various Capital Improvements-Public Safety
9/17/2018
12/30/2020
9/27/2023
6/27/2024
4.2500%
180,500.00
8,300.00
172,200.00
18-20
Improvements to Lincoln Ave., Hagemount
Ave and Rocky Brook Court
11/05/2018
12/30/2020
9/27/2023
6/27/2024
4.2500%
100,000.00
5,300.00
94,700.00
->.
19-10
Design Costs - Municipal Complex
6/17/2019
12/30/2020
9/27/2023
6/27/2024
4.2500%
476,000.00
16,500.00
459,500.00
->.
19-20
Various Capital Improvements Police,
-..J
Fire and DPW
11/01/2019
12/30/2020
9/27/2023
6/27/2024
4.2500%
185,500.00
13,250.00
172,250.00
20-05
Springcrest, Spruce Ct. and Glen Drive
7/20/2020
9/29/2022
9/27/2023
6/27/2024
4.2500%
273,000.00
273,000.00
20-05/22-23
Various Road Improvements
9/27/2023
9/27/2023
9/ 27/2023
6/ 27/2024
4.2500%
84,750.00
84,750.00
20-15
Crosswalk Signal and Fire Dept Equipment
12/08/2020
9/29/2022
9/27/2023
6/27/2024
4.2500%
100,000.00
100,000.00
21-02
Improvements Various Roads- Hauser Ave,
3/15/2021
9/29/2022
9/27/2023
6/27/2024
4.2500%
500,000.00
500,000.00
Bennet Pl. Railroad Ave. Dey St
22-11
Improvements Various Roads- Orchard, Clover
2/22/2022
9/29/2022
9/27/2023
6/27/2024
4.2500%
90,000.00
90,000.00
and S Main Public Safety Improvements Police
and Fire, Parks and Recreation, and E. Ward St
Bridge
22-21
Various Capital Improvements
9/27/2023
9/27/2023
9/27/2023
6/27/2024
4.2500%
600,000.00
600,000.00
23-02
Improvements to Maxwell Avenue
9/27/2023
9/27/2023
9/27/2023
6/27/2024
4.2500%
100,000.00
100,000.00
23-12
Various Capital Improvements
9/27/2023
9/27/2023
9/27/2023
6/27/2024
4.2500%
150,000.00
150,000.00
$ 2,663,000.00
$1,084,750.00
$
76,750.00
$ 3,671,000.00
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF DUE FROM - WATER-SEWER CAPITAL FUND
Balance, December 31, 2022 Due from
And
Balance, December 31, 2023 Due from
- 118 -
Exhibit C-11
$ 297,071.10
$ 297 ,071.10
.......
.......
CD
Purpose
General Improvement Bonds of 2018
Date of
Issue
9/27 /2018
Original
Issue
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF GENERAL SERIAL BONDS
Maturities of
Bonds Outstanding
December 31, 2023
Date
Amount
Interest
Rate
$ 4,960,000
4/01/2024
4/01/2025
4/01/2026
4/01/2027
4/01/2028
4/01/2029
4/01/2030
$ 480,000.00
480,000.00
480,000.00
480,000.00
480,000.00
480,000.00
400,000.00
5.00%
5.00%
2.50%
3.00%
3.00%
3.00%
3.00%
Balance
Dec. 31. 2022
$ 3,760,000.00
$ 3, 760,000.00
Decreased
$ 480,000.00
$ 480,000.00
Exhibit C-12
Balance
Dec. 31. 2023
$ 3,280,000.00
$ 3,280,000.00
--"'
N
0
Puroose
Peddie Lake Dam Restoration Loan
Date of
Issue
2011
$
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT LOANS
Maturities of
Bonds Outstanding
Original
December 31, 2023
Interest
Issue
Date
Amount
Rate
156,250
6/9/2024
$
4,360.57
2.00%
12/9/2024
4,404.17
6/10/2025
4,448.22
12/10/2025
4,492.70
6/10/2026
4,537.63
12/10/2026
4,583.00
6/10/2027
4,628.83
12/10/2027
4,675 .12
6/9/2028
4,721.87
12/9/2028
4,769.09
6/10/2029
4,816.78
12/10/2029
4,864.95
6/10/2030
4,913 .60
Balance
Dec. 31. 2022
$
68,808.57
$
68,808.57
Decreased
$
8,592.04
$
8,592.04
Exhibit C-13
Balance
Dec. 31. 2023
$
60,216.53
$
60,216.53
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF RESERVE FOR ENCUMBRANCES
Balance, December 31, 2022
Increased by:
Charged to Improvement Authorizations
Decreased by:
Cash Disbursed
Balance, December 31, 2023
- 121 -
Exhibit C-14
$
240,350.87
762,348.79
$ 1,002,699.66
111,470.39
$
891,229.27
Ord . No.
05-24,09-13
09-20
10-02
10-16
12-04
12-13
13-07,15-14,19-04
13-23, 15-06
_,,
14-06
I\)
I\)
15-07
15-11
15-15, 17-15, 22-24
16-12
17-09, 21-10
17-12
20-05
21-02
22-11
22-21
23-02
23-12
23-22
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Balance
Authorized
Imorovement _Descriotion
Dec. 31. 2022
2023
Peddie Lake Dam improvements
$
550.00
Stockton Street Improvements
16,899.57
Reconstruction of Leshin Lane
13,000.00
Summit Street Sidewalk Improvements
526.45
Hurricane Irene Damage Emergency
625.25
Various Capital Improvements
500.00
Imp. To Peddle Lake Dam Walking Bridge
8,702.67
Road Improvements to Park Avenue, Greeley St.
and Glen Brook Place
15,210.00
Various Capital Improvements including
Document Restoration
9,334.00
Road Improvements to Park Way, Grant St.
and Hutchison Street
25,000.00
Acquisition of Aerial Ladder Truck
300.00
Improvements to Stockton Street and Joseph St.
294,856.15
Rehabilitation of East Ward Street
90,000.00
Retaining Wall, First Ave Improvements
404,000.00
Police, Fire, DPW Court Equipment
40.00
Springcrest, Spruce Ct. and Glen Drive
85,000.00
Improvements Various Roads- Hauser Ave, Bennet Pl.
Railroad Ave. Dey St.
100,368.00
Improvements Various Roads- Orchard, Clover and S Main
560,000.00
Public Safety Improvements Police and Fire, Parks and
Recreation, and E. Ward St Bridge
775,780.00
Improvements to Maxwell Avenue
$
233,730.00
various Capital Improvements
407,600.00
Improvement to the Sluice Gate
61,800.00
$ 2,400,692.09
$
703,130.00
Exhibit C-15
Grants
BA N's
Balance
Received
Issued
Dec. 31. 2023
$
550.00
16,899.57
13,000.00
526.45
625.25
500.00
8,702.67
15,210.00
9,334.00
25,000.00
300.00
$ 108, 162.12
186,694.03
90,000.00
$
150,000.00
254,000.00
40.00
84,750.00
250.00
100,368.00
560,000.00
600,000.00
175,780.00
100,000.00
133,730.00
150,000.00
257,600.00
61,800.00
$ 108, 162.12
$ 1,084,750.00
$ 1,910,909.97
WATER-SEWER UTILITY OPERATING FUND
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY OPERATING FUND
SCHEDULE OF UTILITY CASH - COLLECTOR/TREASURER
Balance, December 31, 2022
Increased by Receipts:
Consumer Accounts Receivable
Miscellaneous Revenue
Interfunds:
Current Fund
Grant Fund
Water Sewer Utility Capital Fund
ARP
Anticipated Deficit
Water-Sewer Rent Overpayment
Decreased by Disbursements:
2023 Appropriations
2022 Appropriation Reserves
Interfund - General Capital Fund
Refund of Prior Year Revenue
Accrued Interest on Bonds, Loans and Notes
Balance, December 31, 2023
- 123 -
$
2,774,313.09
80,954.49
315,380.00
130,893.00
13,547.50
49,259.02
50,000.00
1,005.47
$
2,912,116.01
144,618.57
400,000 .00
7,870.40
125,986.46
Exhibit D-5
$
453,543.28
3,415,352.57
$ 3,868,895.85
3,590,591.44
$
278,304.41
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY OPERATING FUND
SCHEDULE OF CONSUMER ACCOUNTS RECEIVABLE
Balance, December 31, 2022
Increased by:
Water-Sewer Rents Levied
$ 2,829,279.14
Transfer to Consumer Overpayments
1,005.47
Decreased by:
Receipts:
Write off of Prior Year
Gray Water Charge
$
15,699.43
Water-Sewer Rents
Cash Received
2,774,313.09
Due From Current Fund - Peddie School
59,170.45
Due from Current Fund Other Rents
9,746.23
Water-Sewer Rents - Overpayments Applied
1,514.89
Balance, December 31, 2023
- 124 -
Exhibit D-6
$
151,562.32
2,830,284.61
$ 2,981,846.93
2,860,444.09
$
121,402.84
Operating:
Salaries and Wages
$
Other Expenses
Statutory Expenditures:
Unemployment Insurance
Social Security System
!
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY OPERATING FUND
SCHEDULE OF 2022 APPROPRIATION RESERVES
Balance
Balance After
December 31,2022
Transfers and
Reserved
51,927.78
24,173.45
2,000.00
3,039.81
81,141.04
Encumbered
Encumbrances
$
51,927.78
$ 193,109.96
217,283.41
2,000.00
3,039.81
! 193,109.96
! 274,251.00
Cash Disbursed
Due To Trust Other Unemployment
Accounts Payable - 2021 Audit Fee
- 125 -
Paid or
Charged
$ 159,055.57
2,000.00
! 161,055.57
$ 144,618.57
2,000.00
14 437.00
$ 161,055.57
Exl1ibit D-7
Balance
Lapsed
$
51,927.78
58,227.84
3 039.81
~ 113,195.43
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY OPERATING FUND
SCHEDULE OF CONSUMER OVERPAYMENTS
Balance, December 31, 2022
Increased by:
Exhibit D-8
$
7,731.23
Receipts
1,005.47
$
8,736.70
Decreased by:
Overpayments Applied - Water-Sewer Rents
1,514.89
Balance, December 31, 2023
$
7,221.81
- 126 -
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY OPERATING FUND
SCHEDULE OF ACCRUED INTEREST ON BONDS, LOANS AND NOTES
Detail:
BAN's
$
862.96
Bonds
12,208.45
Loans
12,394.62
Balance, December 31, 2022
$
Increased by :
Charged to 2023 Budget:
BAN's
$
56,740.00
Bonds
36,545.00
Loans
47,505.94
$
Decreased by:
Cash Disbursed:
BAN's
$
45,649.35
Bonds
38,589.55
Loans
41,747.56
Balance, December 31, 2023
$
Detail:
BAN's
$
11,953.61
Bonds
10,163.90
Loans
18,153.00
$
40,270.51
- 127 -
Exhibit D-9
25,466.03
140,790.94
166,256.97
125,986.46
40,270.51
WATER-SEWER UTILITY CAPITAL FUND
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY CAPITAL FUND
SCHEDULE OF UTILITY CAPITAL CASH
Balance, December 31, 2022
Increased by Receipts:
Capital Improvement Fund
Bond Anticipation Notes
Interfund:
Water-Sewer Utility Operating Fund Interest Earned
Current Fund :
FEMA Grant Received - Transferred
Cash Received
Grant Fund
NJI Bank - Proceeds
Decreased by Disbursements:
Bond Anticipation Notes
Improvement Authorizations
Water-Sewer Utility Operating Fund:
$
18,776.00
140,324.00
16,851.29
400,231 .20
152,993.90
4,755.80
545,201 .00
$
400,000.00
840,806.23
16,851.29
Exhibit D-10
$
444,277.89
1,279,133.19
$ 1,723,411.08
Interest Earned Transferred
Cash Transfer
13,547.50
1,271,205.02
Balance, December 31, 2023
$
452,206.06
- 128 -
Exhibit D- l l
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY CAPITAL FUND
ANALYSIS OF CASH
Bond
Balance
Anticipation
Transfers
Balance
Dec. 31, 2Q22
Receiots
Disbursements
Notes Paig
From
To
Dec. 31, 2Q2:l
Capital Improvement Fund
$
28,816.95
$
18,776.00
$
16,900.00
$
30,692.95
Interfunds:
Current Fund
952.97
553,225.10
400,231.20
153,946.87
Grant Fund
4,755.80
4,755.80
General Capital Fund
297,071.10
297,071.10
Reserve for Encumbrances
185,920.68
178,530.68
$ 102,355.00
109,745.00
Due To Water-Sewer Operating
108,657.11
16,851.29
$
30,398.79
95,109.61
Reserve for Debt Service
4,631.21
4,631.21
NJ!Bank BAN
Reserve for NJ!Bank
82,272.23
82,272.23
Grant Receivable - FEMA
(474,873.76)
400,231.20
(74,642.56)
Due from NJDEP
16,235.00
(16,235.00)
Due from NJ!Bank
8,117.00
(8,117.00)
Fund Balance
5.72
5.72
Down Payment on Improvements
200.00
200.00
Ord. No.
08-10,08-19
Water-Sewer Improvements
6,140.70
6,140.70
09-02
Water-Sewer Imp. Morrison Avenue
(600.00)
(600.00)
09-15
Water Main Extension
5,190.12
5,190.12
_,..
11-03
Water-Sewer Improvements
12,551.48
9,878.00
2,673.48
I\.)
11-04
Refurbishment of Water Tanks
15,000.00
15,000.00
(()
12-14
Mitigation Water Plant/Roof Replacement
41,532.53
41,532.53
13-19
Water-Sewer Improvements - Grape Run Rd
and Pershing Avenue
6,801.19
6,801.19
14-12
Improvements to Water-Sewer Plants
43,594.16
18,855.30
24,738.86
16-14
Water-Sewer Improvements
(200,213.19)
(200,213.19)
17-10/19-09
Water Mains, Sewer Imp Stockton & Forman
20,375.69
20,375.69
17-11
Secondary Clarifier
(15,050.82)
20,824.00
5,773.18
17-16
Water-Sewer Imp. Maple Ave Sunset Dr
(7,849.00)
20,300.00
20,300.00
(7,849.00)
18-21
Water-Sewer Imp. Lincoln, Hagemount
and Rocky Brook Court
55,169.05
400.00
54,769.05
19-19
Water-Sewer Improvements
4,558.28
200.00
4,358.28
20-06/21-08
Drainage Improvements
410,078.55
772.08
$ (400,000.00)
9,306.47
20-16
Water-Sewer Improvements
49,476.81
16,929.13
7,050.38
39,598.06
20-17
Water-Sewer Flood Mitigation, Generator
281,330.76
354,464.76
9,532.50
(63,601.50)
21-03
Water-Sewer Improvements-Hauser,
Bennet, Prospect, Railroad and Dey
(600.00)
143,144.88
(143,744.88)
22-07
Water Tank Painting and Repairs
(467,900.00)
545,201.00
175,702.15
163,247.30
64,846.15
22-12
Various Water-Sewer Improvements
(52,462.63)
50,000.00
20,316.25
1,910.00
2,752.50
(21,936.38)
22-22
Water Meters Replacement and Upgrades to
Water-Sewer Utility
3,500.00
69,500.00
12,305.00
58,045.00
2,650.00
23-03
Water-Sewer Improvements to Maxwell Avenue
600.00
(600.00)
23-05
Improvements to Sludge Tank and Drywell
31,590.00
(31,590.00)
23-06
Replacement of Water-Sewer Lines
600.00
5,000.00
4,400.00
23-07
Engineer Costs for the Lead Line Water Service
Replacement
5,017.98
(5,017.98)
23-09
Improvements to the Anaerobic Digester
4,290.00
(4,290.00)
23-13
Various Water-Sewer Utility Improvements
19,300.00
42,400.00
6,200.00
(55,500.00)
23-23
Rebuilding of the Rotopress
5 700.00
5 700.00
$ 444,277.89
$ 1,279,133.19
$
84Q&Q6.23
_i (400,000.00)
$
7ll,J68.88
_1_ 722,368.88
$ 452,206.06
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY OPERATING FUND
SCHEDULE OF GRANT RECEIVABLE - FEMA
Balance, December 31, 2022
Decreased by:
Cash Received
Balance, December 31, 2023
Ordinance #20-17 $505,500.00
- 130 -
Exhibit D-12
$ 474,873.76
400,231.20
. $
74,642.56
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL
Balance, December 31, 2022
Balance, December 31, 2023
- 131 -
Exhibit D-13
$ 15,336,516.65
$ 15,336,516.65
Exhibit D-14
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL
AUTHORIZED AND UNCOMPLETED
Fixed
Ord.
Ordinance
Balance
Capital
Balance
No.
Improvement Descriotion
Date
Amount
Dec. 31, 2022
Authorizations
Dec. 31, 2023
08-10, 08-19
Water-Sewer Improvements
10/20/2008
$ 155,400.00
$
155,400.00
$
155,400.00
09-02
Water-Sewer Imp. Morrison Avenue
2/02/2009
215,000.00
215,000.00
215,000.00
09-15
Water Main Extension
9/08/2009
2,200,000.00
2,200,000.00
2,200,000.00
10-01
Water-Sewer Improvements - Leshin Lane
2/01/2010
52,000.00
11-03
Water-Sewer Improvements
6/06/2011
2,083,000.00
2,188,000.00
2,188,000.00
11-04
Refurbishment of Water Tanks
6/06/2011
100,000.00
100,000.00
100,000.00
12-14
Mitigation Water Plant/Roof Replacement
8/20/2012
132,000.00
132,000.00
132,000.00
13-19
Water-Sewer Improvements - Grape Run Rd
and Pershing Avenue
8/19/2013
86,000.00
86,000.00
86,000.00
14-12
Improvements to Water-Sewer Plants
7/21/2014
100,000.00
100,000.00
100,000.00
16-14
Improvements to Water-Sewer Plants
6/06/2016
1,860,000.00
1,860,000.00
1,860,000.00
17-10/19-09
Water Mains, Sewer Imp Stockton & Forman
8/21/2017
1,270,000.00
1,43.5,000.00
1,435,000.00
_...
17-11
Secondary Clarifier
8/21/2017
24.5,000.00
245,000.00
245,000.00
w
17-16
Water-Sewer Imp. Maple Ave Sunset Dr
11/20/2017
110,000.00
110,000.00
110,000.00
I\.)
18-19
Refunding Bonds
10/15/2018
1,040,000.00
18-21
Water-Sewer Imp. Lincoln, Hagemount
and Rocky Brook Court
11/05/2018
175,000.00
175,000.00
175,000.00
19-18
Various Water-Sewer Improvements
11/18/2019
100,000.00
100,000.00
100,000.00
19-19
Various Water-Sewer Improvements
11/18/2019
110,000.00
110,000.00
110,000.00
20-06/21-08
Drainage Improvements
7/20/2020
310,000.00
975,000.00
975,000.00
20-16
Various Water-Sewer Improvements
12/07/2020
115,100.00
115,100.00
115,100.00
20-17
Water-Sewer Flood Mitigation, Generator
12/07/2020
505,500.00
505,500.00
505,.500.00
21-03
Water-Sewer Improvements-Hauser,
Bennet, Prospect, Railroad and Dey
3/15/2022
710,000.00
710,000.00
710,000.00
22-07
Water Tank Painting and Repairs
4/18/222
1,100,000.00
1,100,000.00
1,100,000.00
22-12
Various Water-Sewer Improvements
6/06/2022
380,000.00
380,000.00
380,000.00
22-22
Water Meters Replacements and upgrades
To Water-Sewer Utility
12/19/2022
73,000.00
73,000.00
73,000.00
23-03
Water-Sewer Improvements to Maxwell Avenue
2/21/2023
1,290,000.00
$ 1,290,000.00
1,290,000.00
23-05
Improvements to Sludge Tank and Drywell
4/3/2023
1,640,000.00
1,640,000.00
1,640,000.00
23-06
Replacement of Water-Sewer Lines
4/3/2023
105,000.00
105,000.00
105,000.00
23-07
Engineer Costs for the Lead Line Water Service
Replacement
4/3/2023
100,000.00
100,000.00
100,000.00
23-09
Improvements to the Anaerobic Digester
6/5/ 2023
499,500 .00
499,500.00
499,500 .00
23-13
Various Water-Sewer Utility Improvements
7/17/2023
130,000.00
130,000.00
130,000.00
23-23
Rebuilding of the Rotopress
12/18/2023
118,000.00
118,000.00
118,000.00
$ 13,070,000.00
$ 3,882,500.00
$ 16,952,500.00
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY CAPITAL FUND
SCHEDULE OF DUE TO WATER-SEWER UTILITY OPERATING FUND
Balance, December 31, 2022 (Due To)
$
Increased by:
Interest Earned
$
Decreased by:
Interest Transferred to Water-Sewer
Utility Operating Fund
$
16,851.29
Cash Disbursed
13,547.50
Balance, December 31, 2023 (Due To)
$
- 133 -
Exhibit D-15
108,657.11
16,851.29
125,508.40
30,398. 79
95,109.61
Date of
Purpose
Issue
Water-Sewer Utility Bonds
9/27/2018
....>.
VJ
.J:>,.
Water-Sewer Utility Refunding Bonds
11/27/2018
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY CAPITAL FUND
SCHEDULE OF SEWER SERIAL BONDS
Maturities of
Bonds Outstanding
Original
December 31. 2023
Issue
Date
Amount
$ 875,000.00
4/01/2024
$ 75,000.00
4/01/2025
75,000.00
4/01/2026
75,000.00
4/01/2027
75,000.00
4/01/2028
75,000.00
4/01/2029
75,000.00
4/01/2030
75,000.00
1,040,000.00
3/01/2024
105,000.00
3/1/25-27
100,000.00
3/01/2028
95,000.00
Exhibit D-16
Decreased by
Interest
Balance
Budget
Balance
Rate
Dec. 31. 2022
Aoorooriation
Dec. 31. 2023
5.000%
$
595,000.00
$
70,000.00
$
525,000.00
5.000%
2.500%
3.000%
3.000%
3.000%
3.000%
3.342%
605,000.00
105,000.00
500,000.00
3.342%
3.342%
-
$ 1,200,000.00
$
175,000.00
$ 1,025,000.00
Exhibit D-17
BOROUGH OF HIGHTSTOWN
Page 1 of2
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY CAPITAL FUND
SCHEDULE OF LOANS PAYABLE
Maturities of
Loans Outstanding
Date of
Original
December 31. 2023
Interest
Balance
Balance
Puroose
~
Issue
Date
Amount
_Rfil_
Dec. 31. 2022
Increased
Decreased
Dec. 31. 2023
NJ Environmental Infrastructure Trust
3/10/2010
$
495,000.00
8/01/2024-25
$ 28,000.00 3.50%-4.00%
$
217,000.00
$
29,000.00
$
188,000.00
(State) Loan
8/01/2026-29
33,000.00
NJ Environmental Infrastructure Fund
3/10/2010
1,451,250.00
8/01/2024-28
51,830.35
0.00%
544,218.93
77,745.52
466,473.41
(Federal) Loan
2/01/2024-29
25,915.17
0.00%
8/01/2029
51,830.64
0.00%
NJ Environmental Infrastructure Trust
5/16/2012
283,382.00
8/01/2024
15,013.00
2.110%
145, 781.00
14,720.00
131,061.00
(State) Loan
8/01/2025
15,330.00
2.230%
8/01/2026
15,672.00
2.330%
8/01/2027
16,037.00
2.860%
_..
8/01/2028
16,495.00
2.950%
w
8/01/2029
16,982.00
3.030%
01
8/01/2030
17,497.00
3.080%
8/01/2031
18,035.00
3.140%
NJ Environmental Infrastructure Fund
5/16/2012
813,055.00
2/01/2024-31
14,264.12
0.00%
385,131.40
42,792.36
342,339.04
(Federal) Loan
8/01/2024-30
28,528.24
0.00%
8/01/2031
28,528.40
0.00%
NJ Environmental Infrastructure Fund
5/16/2012
238,918.00
8/01/2024
12,657.00
2.110%
122,906.00
12,410.00
110,496.00
(State) Loan
8/01/2025
12,924.00
2.230%
8/01/2026
13,213.00
2.330%
8/01/2027
13,521.00
2.860%
8/01/2028
13,907.00
2.950%
8/01/2029
14,317.00
3.030%
8/01/2030
14,751.00
3.080%
8/01/2031
15,206.00
3.140%
NJ Environmental Infrastructure
5/16/2012
$
685,482.00
2/01/2024-31
$ 12,026.00
0.00%
324,702.00
36,078.00
288,624.00
Fund Loan
8/01/2024-31
24,052.00
0.00%
NJ Environmental Infrastructure Fund
5/25/2017
80,000.00
8/01/2024-25
5,000.00
5.000%
55,000.00
5,000.00
50,000.00
(State) Loan (2017A-1)
8/01/2026-32
5,000.00
3.000%
8/01/2033
5,000.00
3.125%
NJ Environmental Infrastructure
5/25/2017
86,542.00
2/01/2024-32
1,730.84
0.00%
52,937.72
5,192.52
47,745.20
Fund (Federal) Loan
2/01/2033
1,012.52
0.00%
8/01/2024-32
3,461.68
Exhibit D-17
BOROUGH OF HIGHTSTOWN
Page 2 of2
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY CAPITAL FUND
SCHEDULE OF LOANS PAYABLE
Maturities of
Loans Outstanding
Date of
Original
December 31, 2023
Interest
Balance
Balance
~
~ ~
Date
Amount
_Rill_
Dec. 31. 2022
Increased
Decreased
Dec. 31. 2023
NJ Environmental Infrastructure Trust Loan
5/22/2018
$
330,000.00
8/01/2024 - 36
$ 10,000.00
3.730%
$
310,000.00
$
10,000.00
$
300,000.00
2018 (State) Loan
8/01/2037 - 41
15,000.00
3.730%
8/01/2042 - 46
15,000.00
3.750%
8/01/2047
20,000.00
3.750%
NJ Environmental Infrastructure Loan
5/22/2018
963,975.00
2/01/2024-45
10,831.17
0.00%
757,867.57
32,493.52
725,374.05
Fund (Federal) Loan
8/01/2024-45
21,662.35
0.00%
8/01/2046
10,516.61
0.00%
NJ Environmental Infrastructure Trust Loan 2022
6/23/2022
315,000.00
8/01/2024 -28
5,000.00
5.000%
315,000.00
5,000.00
310,000.00
(State) Loan
8/ 01/2029-33
10,000.00
5.000%
--"'
8/01/2034
10,000.00
3.250%
(J.)
8/01/2035-37
10,000.00
3.375%
0)
8/01/2038-41
10,000.00
3.500%
8/01/2042-43
15,000.00
3.625%
8/01/2044
15,000.00
3.500%
8/01/2045-50
15,000.00
4.000%
8/01/2051
20,000.00
4.000%
NJ Environmental Infrastructure Loan
6/23/2022
324,073.00
2/01/2024-51
3,641.26
0.00%
$
316,790.47
10,923.79
305,866.68
Fund (Federal) Loan
8/01/2024-50
7,282.53
0.00%
8/01/2051
7,282.09
NJ Environmental Infrastructure Trust Loan 2022
6/23/2023
125,538.00
8/01/2025-27
5,000.00
5.000%
$ 125,538.00
125,538.00
(State) Loan
8/01/2028-35
10,000.00
5.000%
8/01/2036
10,367.00
3.030%
8/01/2037
10,181.00
3.030%
8/01/2038
9,990.00
3.030%
NJ Environmental Infrastructure Loan
6/23/2023
145,378.00
8/01/2024-37
6,608.09
0.00%
145,378.00
145,378.00
Fund (Federal) Loan
8/01/2038
6,608.04
0.00%
2/01/2025-38
3,304.05
0.00%
---
$ 3,547,335.09
$ 270,916.00
$ 281,355.71
$ 3,536,895.38
Date of
No.
Descriotion
Ordinance
17-11
Secondary Clarifier
8/21/2017
17-11
Secondary Clarifier
8/21/2017
18-21
Water-Sewer Imp. Lincoln, Hagemount
11/05/2018
and Rocky Brook Court
18-21
Water-Sewer Imp. Lincoln, Hagemount
11/05/2018
and Rocky Brook Court
19-19
Water-Sewer Improvements
11/18/2019
19-19
Water-Sewer Improvements
11/18/2019
20-06
Drainage Improvements
7/20/2020
22-12
Water-Sewer Improvements
6/06/2022
__,,,
22-12
Water-Sewer Improvements
6/06/2022
VJ
22-22
Water-Sewer Improvements
12/19/2022
.......
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY CAPITAL FUND
SCHEDULE OF BOND ANTICIPATION NOTES
Date of
Original
Date of
Date of
Interest
~ ~ Maturity
~
12/30/2020
9/27/2023
6/27/2024
4.25%
9/27/2023
9/27/2023
6/27/2024
4.25%
12/30/2020
9/27/2023
6/27/2024
4.25%
9/29/2022
9/27/2023
6/27/2024
4.25%
12/30/2020
9/27/2023
6/27/2024
4.25%
9/29/2022
9/27/2023
6/27/2024
4.25%
9/30/2021
9/27/2023
6/27/2024
4.25%
9/29/2022
9/27/2023
6/27/2024
4 .25%
9/27/2023
9/27/2023
6/27/2024
4.25%
9/27/2023
9/27/2023
6/27/2024
4.25%
Balance
Dec. 31. 2022
$
210,000.00
70,000.00
100,000.00
50,000.00
35,000.00
920,000.00
50,000.00
$ 1,~35,000 . 00
New Money
Budget
Excess Cash
Increase
$
20,824.00
50,000.00
69,500.00
$ _lA0,324.00.
$
140,324.00
Exhibit D-18
Balance
Decrease
Dec. 31. 2023
$
2,659.00
$
207,341.00
20,824.00
887.00
69,113.00
100,000.00
2,778.00
47,222.00
35,000.00
400,000.00
520,000.00
50,000.00
50,000.00
69 500.00
1__406,324.00
$ 1,169,000.00
$
6,324.00
400,000.00
$
406,324.00
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR DEBT SERVICE
Balance, December 31, 2022
AND
Balance, December 31, 2023
- 138 -
Exhibit D-19
$
4,631.21
$
4,631.21
Exhibit D-20
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
2023 Authorizations
Deferred Charge
Capital
Ord.
Ordinance
Balance. Dec. 31~ 2022
Encumbrances
to future
Improvement
Paid or
Encumbrances
Balance. Dec. 31 2023
tl2._
Improvement Descriotion
~
filnmml
~
~
Qec. 31 2Q22
Revenue
Fund
~ Dec. Jl 2023
~
Unfunded
Deferred
08-10,
Water-Sewer Improvements
08-19
10/20/2008
$
155,400.00
$
6,140.70
$
6,140.70
09-15
Water Main Extension
9/08/2009
2,200,000.00
5,190.12
$
3,750.00
$
5,190.12
$
3,750.00
10-01
Water-Sewer Improvements - Leshin Lane
2/01/2010
52,000.00
11-03
Water-Sewer Improvements
6/06/2011
2,083,000.00
12,551.48
563.00
$
4,365.00
9,878.00
$
4,365.00
3,236.48
11-04
Refurbishment of Water Tanks
6/06/2011
100,000.00
15,000.00
15,000.00
12-14
Mitigation Water Plant/Roof Replacement
8/20/2012
132,000.00
41,532.53
41,532.53
13-19
Water-Sewer Improvements - Grape Run
Rd and Pershing Avenue
8/19/2013
86,000.00
6,801.19
6,000.00
6,801.19
6,000.00
14-12
Improvements to Water-Sewer Plants
7/21/2014
100,000.00
18,855.30
18,855.30
16-14
Water-Sewer Improvements
6/06/2016
1,860,000.00
27,327.67
226,398.00
3,025.00
3,025.00
27,327.67
226,398.00
17-10,
Water Mains, Sewer Imp Stockton &
8/21/2017
1,270,000.00
277,161.69
277,161.69
19-09
Forman and First Ave.
165,000.00
17-11
Secondary Clarifier
8/21/2017
245,000.00
19,949.18
19,949. 18
17-16
Water-Sewer Imp. Maple Ave Sunset Dr
11/20/2017
110,000.00
102,151.00
20,300.00
20,300.00
102,151.00
18-19
Refunding Bonds
10/15/2018
1,080,000.00
18-21
Water-Sewer Imp. Lincoln, Hagemount
and Rocky Brook Court
11/05/2018
175,000.00
60,169.05
400.00
59,769.05
19-18
Various Water-Sewer Improvements
11/18/2019
100,000.00
->.
19-19
Various Water-Sewer Improvements
11/18/2019
110,000.00
24,258.28
200.00
24,058.28
(,.)
20-06/
Springcrest, Spruce & Glen Dr. Improvements
7/20/2020
310,000.00
co
21-08
7/19/2022
665,000.00
459,877.77
772.08
459,105.69
20-16
Water-Sewer Improvements
12/ 07/2020
115,100.00
57,476.81
7,050.38
16,929.13
47,598.06
20-17
Water-Sewer Flood Mitigation, Generator
12/07/2020
505,500.00
281,330.76
9,532.50
354,464.76
$ (63,601.50)
21-03
Water-Sewer Improvements-Hauser,
709,400.00
143,144.88
566,255.12
Bennet, Prospect, Rallroad and Dey
3/15/2022
710,000.00
22-07
Water Tank Painting and Repairs •
4/18/2022
1,100,000.00
632,100.00
138,895.30
175,702.15
595,293.15
22-12
Various Water-Sewer Improvements *
6/06/2022
380,000.00
327,537 .37
2,752.50
20,316.25
1,910 00
308,063.62
22-22
Water Meters Replacements and Upgrades
To Water-Sewer Utility
12/19/2022
73,000.00
3,500.00
69,500.00
12,305.00
58,045.00
2,650.00
23-03
Water-Sewer Improvements to Maxwell Avenue*
2/21/2023
1,290,000.00
$ 1,290,000.00
600.00
1,289,400,00
23-05
Improvements to Sludge Tank and Drywell •
4/03/2023
1,640,000.00
1,640,000.00
31,590.00
1,608,410.00
23-06
Replacement of Water-Sewer Lines
4/03/2023
105,000.00
100,000.00
$ 5,000.00
600.00
4,400.00
100,000.00
23-07
Engineer Costs for the Lead Line Water Service
Replacement *
4/03/2023
100,000.00
100,000.00
5,017.98
94,982.02
23-09
Improvements to the Anaerobic Digester
6/05/2023
499,500.00
499,500.00
4,290.00
495,210.00
23-13
Various Water-Sewer Utility Improvements
7/17/2023
130,000.00
123,800.00
6,200.00
19,300.00
42,400.00
68,300.00
23-23
Rebuilding of the Rotopress
12/ 18/2023
118,000.00
112 300.00
s 700.00
5 700.00
112 300.00
i 418,229.75
i 2 976,292. 15
i 185,920.68
i 3,865,600.00
$ 16,900.00
$
840,806.23
$ 109.745.00
$ 105,951.51
$ _§,470,041.34
$ (63,601.50)
* NJI-Bank
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR ENCUMBRANCES
Balance, December 31, 2022
Increased by:
Charged to Improvement Authorizations
Decreased by:
Transferred to Improvements Authorizatior
Balance, December 31, 2023
- 140 -
Exhibit D-21
$
185,920.68
109,745.00
$
295,665.68
185,920.68
$
109,745.00
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR AMORTIZATION
Balance, December 31, 2022
Increased by:
Paydowns:
Serial Bonds
Loans
BANS
Balance, December 31, 2023
$
175,000.00
281,355. 71
6,324.00
Exhibit D-22
$
17,504,332.34
462,679.71
$ 17,967,012.05
Exhibit D-23
SCHEDULE OF DEFERRED RESERVE FOR AMORTIZATION
Balance, December 31, 2022
$
1,061,077.24
Increased by:
Fixed Capital Authorized
$
16,900.00
NJI-Bank Loan - Forgiveness
284,777.00
FEMA Generator Grant
401,231.20
NJIBank Additions
24,362.00
727,270.20
1,788,347.44
Decreased by:
Prior Year Adjustments
11,502.00
Balance, December 31, 2023
$
1,776,845.44
- 141 -
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
Balance, December 31, 2022
Increased by:
2023 Budget Appropriation
Decreased by:
Appropriated to Finance Improvement Authorizations
Balance, December 31, 2023
- 142 -
Exhibit D-24
$ 28,816.95
18,776.00
$ 47,592.95
16,900.00
$ 30,692.95
__,,,
~
w
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
WATER-SEWER UTILITY CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Bond
Ordinance
Balance
2023
Anticipation
Number
Imorovement_Description
Dec. 31, 2022
Authorizations
_l'\IJ)_tes/Loans Issued
09-02
Morrison Avenue Improvements
$
600.00
09-15
Water Main Extension
3,750.00
11-03
Water-Sewer Improvements
563.00
13-19
Water-Sewer Improvements - Grape
Run Rd. and Pershing Avenue
6,000.00
16-14
Water-Sewer Improvements
226,398.00
17-10/19-09 Water Mains/Sewer Imp Forman and
First Ave.
256,786.00
17-11
Secondary Clarifier
35,000.00
$
20,824.00
17-16
Maple Ave and Sunset Dr. Improvements
110,000.00
18-21
Improvements to Lincoln Ave., Hagemount
Ave. and Rocky Brook Court
5,000.00
19-19
Various Water-Sewer Improvements
19,700.00
20-06/21-08 Springcrest, Spruce and Glen Drive Improvements
8,500.00
20-16
Water-Sewer Improvements
37,180.00
21-03
Water-Sewer Improvements-Hauser,
Bennet, Prospect, Railroad and Dey
710,000.00
22-07
Water Tank Painting and Repairs
1,100,000.00
545,201.00
22-12
Various Water-Sewer Improvements
330,000.00
50,000.00
22-22
Water Meters Replacements and upgrades
To Water-Sewer Utility
69,500.00
69,500.00
23-03
Water-Sewer Improvements to Maxwell Avenue
$ 1,290,000.00
23-05
Improvements to Sludge Tank and Drywell
1,640,000.00
23-06
Replacement of Water-Sewer Lines
100,000.00
23-07
Engineer Costs for the Lead Line Water Service
Replacement
100,000.00
23-09
Improvements to the Anaerobic Digester
499,500.00
23-13
Various Water-Sewer Utility Improvements
123,800.00
23-23
Rebuilding of the Rotopress
112,300.00
$ 2,918,977.00
$ 3,865,600.00
$
685,525.00
Exhibit D-25
Balance
Adiustment
Dec. 31, 2023
$
600.00
3,750.00
563.00
6,000.00
226,398.00
256,786.00
14,176.00
110,000.00
5,000.00
19,700.00
8,500.00
$ 29,180.00
8,000.00
710,000.00
24,352.00
530,447.00
280,000.00
1,290,000.00
1,640,000.00
100,000.00
100,000.00
499,500.00
123,800.00
112,300.00
$ 53,532.00
$ 6,045,520.00
SUPPLEMENTARY AND STATISTICAL DATA
->.
~
~
ASSETS
Cash
Cash _Held by Plan Administrator (LOSAP)
Accounts Receivable:
Grants
Due from State of New Jersey
Grant Receivable - FEMA
Taxes, Liens and Utility Charges
lnterfund Loans
Other Accounts Receivable
Charges to Future Taxation/Revenue
Fixed Capital
Capital Assets
Current
Fund
$
5,215,888.68
154,760.00
549,796.59
726,181.94
16,637.23
.BOROUGH OF HIGHTSTOWN
MERCER COUNTY. NEW JERSEY
COMBINED BALANCE SHEET ALL FUNDS
FOR THE YEAR ENDED DECEMBER 31. 2023
Trust
Fund
General
Capital Fund
Water-Sewer
Utility Fund
751,766.58
$
3,606.46
$
730,510.47
841,630.60
1,995,613.82
24,352.00
74,642.56
38,218.14
121 ,402.84
303,929.96
2,784,437.64
511,417.03
18,970.55
8,922,126.50
64,196.77
32,289,016.65
$
Governmental
Capital Assets
Account
7, 148,891.87
$
Totals
(Memorandum Only)
2023
2022
6,701,772.19 $
5,794,240.94
841,630.60
742,008.11
154,760.00
177,368.00
2,019,965.82
1,756,094.24
74,642.56
474,873.76
709,417.57
617,308.15
4,325.966.57
1,838,551.36
35,607.78
43,031.17
8,986,323.27
8,892,500.66
32,289,016.65
28,406,516.65
7.148,891 .87
7,148,891.87
$
6,663,264.44
$ 1,954,515.83
$ 13,705,784.42
$
33,815,538.32 $
7,148,891.87 $
63,287,994.88 $
55,891,384.91
BOROUGH OF HIGHTSTOWN
MERCER COUNTY. NEW JERSEY
COMBINED BALANCE SHEET ALL FUNDS
FOR THE YEAR ENDED DECEMBER 31. 2023
Governmental
Totals
Current
Trust
General
Water-Sewer
Capital Assets
(Memorandum Onl:z'.)
Fund
Fund
Capital Fund
Utility Fund
Account
2023
2022
LIABILITIES. RESERVES
AND FUND BALANCE
Bonds, Notes and Loans Payable
$
7,011,216.53
$
5,730,895.38
$
12,742, 111 .91
$
12,674,143.66
Prepaid Taxes
$
91,515.27
91 ,515.27
123,635.29
Tax, Utility Charges and Other Overpayments
13,113.19
7,221.81
20,335.00
12,984.51
Accounts Payable
64,708.24
14,437.00
79,145.24
223,725.48
Appropriation Reserves
626,951.29
175,842.71
802,794.00
1,036,276.86
Reserve for Encumbrances
192,465.06
891,229.27
210,878.34
1,294,572.67
971 ,455.76
--"
Amounts Pledged to Specific Purposes (LOSAP)
$
841,630.60
841,630.60
742,008.11
~
01
Developers Deposits and Escrow Funds
78,678.94
78,678.94
87,705.76
Improvement Authorizations
3,266,997 .58
6,575,992.85
9,842,990.43
7,390,401 .33
lnterfund Loans
2,857,508.65
91,684.62
400,000.00
976,773.30
4,325,966.57
1,838,551.36
Accrued Interest on Bonds, Loans and Notes
40,270.51
40,270.51
25,466.03
Other Liabilities
40,117.00
84,387.78
220,922.50
36,024.16
381,451.44
685,950.79
Reserve for Certain Assets Receivable
1, 142,270.61
127,959.87
196,045.40
1,466,275.88
1,527,980.30
Reserve for Amortization of Costs of
Fixed Capital - Acquired or Authorized
17,967,012.05
17,967,012.05
17,504,332.34
Deferred Reserve for Amortization
1,776,845.44
1,776,845.44
1,061,077.24
Reserve for Grants
310,029.97
310,029.97
459,907.78
Various Reserves
858,133.89
1,777,646.99
82,272.23
2,718,053.1 1
768,505.70
Investment in Governmental Capital Assets
$
7,148,891.87
7, 148,891 .87
7, 148,891 .87
Fund Balance
1,324,585.16
9,811.68
25,027.14
1,359,423.98
1,608,384.74
Total Liabilities, Reserves and Fund Balance
$
6,663,264.44
$ 1,954,515.83
$ 13,705,784.42
$
33,815,538.32 $
7, 148,891 .87
$
63,287,994.88 $
55,891 ,384.91
BOROUGH OF HIGHTSTOWN
MERCER COUNTY. NEW JERSEY
COMPARATIVE STATEMENT OF OPERATIONS AND CHANGE IN FUND BALANCE
CURRENT FUND
Revenue and Other Income Realized
Fund Balance Utilized
Miscellaneous - from other than Local
Property Tax Levies
Other Credits to Income
Nonbudget Revenue
Collection of Delinquent Taxes and Tax Title Liens
Collection of Current Tax Levy
Cancellation of Prior Year Accounts Payable
Prior Year lnterfund Liquidated
Total Income
Expenditures
Budget Expenditures - Municipal Purposes
County Taxes
Local School Taxes
Other Expenditures
Total Expenditures
Excess of Revenue over Expenditures
Excess to Fund Balance
Fund Balance, January 1
Less: Utilized as Anticipated Revenue
Fund Balance, December 31
$
Balance
December 31,
2023
898,000.00
1,737,785.86
588,609.53
35,923.64
228,230.69
18,903,259.58
132,718.53
231.68
$ 22,524,759.51
$
8,288,789.61
3,316,487.06
9,637,902.00
441,398.18
$ 21,684,576.85
$
840,182.06
840,182.06
$
1,382,403.10
2,222,585.16
898,000.00
$
1,324,585.16
- 146 -
Balance
December 31,
2022
3.99%
$
820,000.00
7.72%
2.61%
0.16%
1.01%
83.92%
0.59%
0.00%
100.00%
38.21%
15.29%
44.45%
2.04%
100.00%
1,473,631.17
479, 184.88
141,762.88
175,455.33
18,329,888.21
$ 21,419,922.47
$
7,664,154.96
3, 154,947.85
9,581,719.00
191,565.65
$ 20,592,387.46
$
827,535.01
827,535.01
$
1,374,868.09
2,202,403.10
820,000.00
$
1,382,403.10
3.83%
6.88%
2.24%
0.66%
0.82%
85.57%
100.00%
37.22%
15.32%
46.53%
0.93%
100.00%
BOROUGH OF HIGHTSTOWN
MERCER COUNTY. NEW JERSEY
COMPARATIVE STATEMENT OF OPERATIONS AND CHANGE IN FUND BALANCE
WATER AND SEWER UTILITY OPERATING FUND
Balance
Balance
December 31,
December 31,
2023
Percent
2022
Percent
Revenue and Other Income Realized
Fund Balance Utilized
$
200,000.00
5.99%
$
182,000.00
5.45%
Collection of Water and Sewer Rents
2,843, 739.19
85.21%
2,710,830.62
81.23%
Other Credits to Income
113, 195.43
3.39%
66,586.83
2.00%
Miscellaneous - from other than Water & Sewer Rents
130,223.51
3.89%
262,699.67
7.86%
Anticipated Deficit
50,000.00
1.50%
Total Income
$
3,337,158.13
100.00%
$
3,222,117.12
96.55%
Expenditures
Budget Expenditures:
Operating
$
2,559,017.00
76.67%
$
2,299,569.00
68.90%
Capital Appropriations
18,776.00
0.56%
32,000.00
0.96%
Debt Service
596,590.00
17.87%
510,785.90
15.30%
Deferred Charges and Statutory Expenditures
155,500.00
4.66%
155,500.00
4.66%
Prior Year Refund
7,870.40
0.24%
Total Expenditures
$
3,337,753.40
100.00%
$
2,997,854.90
89.82%
Excess of Revenue over Expenditures
$
(595.27)
$
224,262.22
Regulatory/(Deficit) to Balance Sheet/
Excess to Fund Balance
$
(595.27)
$
224,262.22
Fund Balance, January 1
225,021.42
182,759.20
225,021.42
407,021.42
Less:
Utilized as Anticipated Revenue
200,000.00
182,000.00
Fund Balance, December 31
$
25,021.42
$
225,021.42
- 147 -
Tax Rate
Aopointment of Tax Rate:
County Regular
County Library
County Open Space
Local School
Municipal
ASSESSED VALUATIONS
2023
2022
2021
2020
2019
BOROUGH OF HIGHTSTOWN
MERCER COUNTY. NEW JERSEY
COMPARATIVE SCHEDULE OF TAX RATE INFORMATION
2023
0.729
0.075
0.034
2.436
1.579
2022
4.685
0.693
0.071
0.032
2.419
1.470
$ 395,713,300.00
396, 101, 192.00
396, 172,393.00
394,686,499.00
393,687 ,820.00
2021
4.516
0.667
0.068
0.029
2.342
1.410
COMPARISON OF TAX LEVIES AND CURRENT COLLECTION
2020
2019
4.413
4.290
0.678
0.659
0.069
0.066
0.030
0.028
2.284
2.209
1.352
1.328
A study of this tabulation could indicate a possible trend in future tax levies. A decrease in the percentage of current collection
could be an indication of a probable increase in future tax levies.
Percentage
Year
Tax Levy
Cash Collections
of Collection
2023
$ 19,209,978.05
$
18,903,259.58
98.40%
2022
18,576,032.10
18,329,888.21
98.67%
2021
17,915,565.49
17,724,330.08
98.93%
2020
17,451,083.95
17,231,965.87
98.74%
2019
16,390,722.31
16,122,100.50
98.36%
DELINQUENT TAXES AND TAX TITLE LIENS
The tabulation includes a comparison, expressed in percentage, of the total of delinquent taxes and tax title liens, in relation to
the tax levies of the last five (5) years.
Amount of
Amount of
Total
Percentage
Year
Tax Title Liens
Delinquent Taxes
Delinquent
of Tax Levy
2023
$
257,921.53
$
291,875.06
$
549,796.59
2.86%
2022
240,868.08
224,877.75
465,745.83
2.51%
2021
212,328.23
178,357.41
390,685.64
2.18%
2020
198,631.76
199,804.52
398,436.28
2.28%
2019
186,456.28
204,414.99
390,871.27
2.38%
- 148 -
2023
2022
2021
2020
2019
2023
2022
2021
2020
2019
$
$
Vacant Land
2,706,000
$
2,778,300
2,318,700
2,365,800
2,436,800
BOROUGH OF HIGHTSTOWN
MERCER COUNTY. NEW JERSEY
VALUATION OF PROPERTY
Aggregate
Assessed
Aggregate
Ratio of
Valuation of
True Value of
Assessed to
Real Propertl'.
Real Pro~ertl'.
True Value
392,463,700
$ 576,643,697
68.06%
392,879,100
534,602, 123
73.49%
392,578,000
494,617,614
79.37%
391,402,400
452,802,406
86.44%
390,306,400
456,819,288
85.44%
REAL PROPERTY CLASSIFICATION
Residential
Commercial
Industrial
318,253,900
$
54,577,700
$
3,552,900
317, 106,600
56,068, 100
3,552,900
316,258,000
56,615,600
4,012,500
314,503,000
56,967,000
4, 193,400
314,070,100
57,258,400
3,167,900
- 149 -
Assessed Value
of Personal
Equalized
Pro~ertl'.
Valuation
$
3,249,600 $
579,893,297
3,222,092
537,824,215
3,594,393
498,212,011
3,284,099
456,086,505
3,381,420
460,200,708
A~artments
Total
$
13,373,200 $
392,463,700
13,373,200
392,879, 100
13,373,200
392.578,000
13,373,200
391.402.400
13,373,200
390,306,400
BOROUGH OF HIGHTSTOWN
MERCER COUNTY. NEW JERSEY
PROPERTY ACQUIRED BY TAX TITLE LIEN LIQUIDATION
No properties have been acquired in 2023 by foreclosure or deed as a result of liquidation of tax title liens.
There was no property acquired by liquidation of tax title liens on December 31, for the last five (5) years.
COMPARISON OF WATER AND SEWER UTILITY LEVIES
Year
Levy
Cash Collections *
2023
$
2,829,279.14
$
2,843,739.19
2022
2,740,869.97
2,710,830.62
2021
2,729,037.01
2,712,410.65
2020
2,754,719.30
2,736,944.27
2019
2,716,219.27
2,768,273.56
* Cash collections include amounts which were levied in prior years.
COMPARATIVE SCHEDULE OF FUND BALANCES
Utilized in Budget
Balance,
of Succeeding
Fund
Year
December 31
Year
Current
2023
$
1,399,585.16
$
1,030,87 4.00
2022
1,382,403.10
898,000.00
2021
1,374,868.69
820,000.00
2020
1,418,712.88
975,000.00
2019
745,724.44
275,000.00
Water-Sewer
2023
$
25,021.42
$
48,000.00
2022
225,021.42
200,000.00
2021
182,795.20
182,000.00
2020
251,805.50
250,000.00
2019
190,465.19
189,000.00
- 150 -
Issued
General:
Bonds, Notes and Loans
Water-Sewer Utility:
Bonds, Notes and Loans
Authorized but Not Issued
General:
Bonds and Notes
Water-Sewer Utility:
Bonds and Notes
Net Bonds and Notes Issued
and Authorized but Not Issued
BOROUGH OF HIGHTSTOWN
MERCER COUNTY. NEW JERSEY
SUMMARY OF MUNICIPAL DEBT
Year2023
Year2022
$
7,011,216.53
$
6,491,808.57
5,730,895.38
6,182,335.09
$ 12,742,111.91
$ 12,674,143.66
$
1,910,909.97
$
2,400,692.09
6,045,220.00
2,918,477.00
$
7,956,129.97
$
5,319, 169.09
$ 20,698,241.88
$ 17,993,312.75
- 151 -
Year2021
$
5,877,231.31
5,900,486.54
$ 11,777,717.85
$
2, 103,312.07
1,663,511.00
$
3, 766,823.07
$ 15,544,540.92
BOROUGH OF HIGHTSTOWN
MERCER COUNTY. NEW JERSEY
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 and indicates a Statutory Net Debt of 2.18%.
Gross Debt
Deductions
Net Debt
Regional School District Debt
$
1,643,029.46
$
1,643,029.46
None
Water-Sewer Utility Debt
11, 776,615.38
9,033, 729.38
$ 2, 7 42,886.00
General Debt
8,922, 126.50
None
8,922,126.50
$ 22,341, 771.34
$ 10,676, 758.84
$ 11,665,012.50
There was a deficit in revenue of $137, 144.30 and as such, the water-sewer utility was not self-liquidating and
therefore, based on the requirements $2,742,886 (20x$137, 144.30 (5%)) was not deductible from the gross
debt and was factored into the net debt of the Borough.
BORROWING POWER UNDER NJSA 40A:2-6
3Wlo of Equalized Valuation Basis (Municipal)
Net Debt
Remaining Borrowing Power
$ 18,735,073.39
11,665,012.50
$ 7,070,060.89
CALCULATION OF "SELF-LIQUIDATING PURPOSE" WATER-SEWER UTILITY PER NJSA 40A:2-45
Cash Receipts from Fees, Rents or Other Charges for Year
Deductions:
Operating and Maintenance Cost
Debt Service
Excess/(Deficit) in Revenue
$
2,714,517.00
596,590.00
$ 3, 173,962.70
3,311, 107.00
$
(137,144.30)
The foregoing debt information is in agreement with the Annual Debt Statement as filed by the Chief Financial
Officer.
There being a deficit in revenue, the fund was not totally self liquidating and the related debt as of December 31,
2024 is only partially deductible for the purposes of the annual debt statement and resultant net debt calculation.
(Unaudited)
- 152 -
AUDITOR'S COMMENTS AND RECOMMENDATIONS
GENERAL COMMENTS
DECEMBER 31. 2023
The Honorable Mayor and Members
of the Borough Council
Borough of Hightstown
County of Mercer
State of New Jersey
Ladies and Gentlemen:
We have audited the financial statements - regulatory basis and supplemental schedules and
data of the Borough of Hightstown, County of Mercer, New Jersey for the year ended December
31, 2023, and have issued our report thereon. As part of our audit, we reviewed and tested the
Borough's system of internal accounting control to the extent we considered necessary to
evaluate the system as required by auditing standards generally accepted in the United States
of America; by the Division of Local Government Services of the Department of Community
Affairs, State of New Jersey and by the Government Auditing Standards issued by the U.S.
General Accounting Office.
Our comments with respect to the audit, internal control, and any error, omission, irregularity,
violation of law, discrepancy or other nonconformity to the law or regulation found during the
audit are herewith set forth.
Internal Control Matters
The deficiencies in internal control, as reported below, are not considered to be significant
deficiencies nor material weaknesses. In addition, these deficiencies are not required to be
reported in writing, however, these deficiencies are presented to management and those
charged with governance in this report as a means to present those matters identified in review
of the Borough's internal controls and as a means to inform management and those charged
with governance as to the auditing standards requirements with respect to internal controls.
In addition, during our audit we noted certain matters involving the internal control and other
operational matters that are presented for your consideration. This letter does not affect our
report dated April 29, 2025, on the financial statements of the Borough of Hightstown. Our
comments and recommendations, which have been discussed with appropriate members of
management, are intended to improve the internal control or result in other operating
efficiencies.
- 153 -
GENERAL COMMENTS (CONTINUED)
DECEMBER 31. 2023
An audit of the financial accounts and transactions of the Borough of Hightstown, County
of Mercer, New Jersey for the year ended December 31, 2023, has been completed. The
General Comments are herewith set forth:
Scope of Audit
The audit covered the financial transactions of the Finance Department and the other
various offices and departments collecting fees within the Borough of Hightstown, County of
Mercer, New Jersey.
The audit did not and could not determine the character of services rendered for which
payment had been made or for which reserves had been set up, nor could it determine the
character, proper price or quantity of materials supplied for which claims had been passed.
These details were necessarily covered by the internal review and control before approval
of such claims by the Governing Body.
Contracts And Aareements Required To Be Advertised for N.J.S. 40A:11-4
N.J.S. 40A: 11-4 states "Every contract or agreement, for the performance of any work or the
furnishing or hiring of any materials or supplies, the cost or the contract price whereof is to be
paid with or out of public funds not included within the terms of Section 3 of this act, shall be
made or awarded only after public advertising for bids and bidding therefore, except as is
provided otherwise in this act or specifically by any other law. No work, materials or supplies
shall be undertaken, acquired or furnished for a sum exceeding in the aggregate of $44,000.00
due to the presence of a Qualified Purchasing Agent ("QPA").
The governing body of the Municipality has the responsibility of determining whether the
expenditures in any category will exceed $44,000.00 within the fiscal year. Where questions
arise as to whether any contract or agreement might result in violation of the statute, the
Borough Counsel's opinion should be sought before a commitment is made.
The minutes indicate that bids were requested by public advertising for the following items:
Stockton Street Sidewalks
Trailer Jetter
Sludge Removal
Improvements to Hansen, Bennett &
Prospect
In addition, purchased under State contract or cooperative purchasing agreements for the
following items:
Acquisition of a New Garbage Truck
Anti-Speeding Equipment
Firefighting Equipment
- 154 -
GENERAL COMMENTS (CONTINUED)
DECEMBER 31. 2023
Contracts and Agreements Required to be Advertised Per N.J.S. 40A:11-4 (Continued)
The minutes indicate that resolutions were adopted and advertised authorizing the awarding of
contracts or agreements for "Professional Services" per N.J.S. 40A: 11-5.
Inasmuch as the system of records did not provide for an accumulation of payments for
categories for the performance of any work or the furnishing or hiring of any materials or
supplies, the results of such an accumulation could not reasonably be 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 $44,000.00 "for the performance of any work or the furnishing or hiring
of any materials or supplies" other than those where bids had been previously sought by public
advertisement or where a resolution had been previously adopted under the provision of N.J.S.
40A:11-6.
The Borough has several interlocal service agreements for various municipal services which are
beneficial to the taxpayers of the Borough of Hightstown.
Collection of Interest on Delinquent Taxes. Utility Charges and Assessments
The statute provides the method for authorizing interest and the maximum rates to be charged
for the nonpayment of taxes and assessments on or before the date when they would become
delinquent.
The governing body, on January 3, 2023, adopted the following resolution authorizing interest to
be charged on delinquent taxes and assessments:
RESOLVED, that in accordance with N.J.S. 54:4-67, as amended in 1970, it is hereby
authorized that the rate of interest for delinquent taxes and assessments be fixed at
eight percent (8%) per annum up to $1,500.00 and eighteen percent (18%) per annum
over $1,500.00 on all delinquent taxes and water-sewer assessments from the date
same were due and payable, and on all delinquencies in excess of $10,000.00, a
penalty pursuant to the provisions of P.L. 1991, Chapter 75, is hereby fixed in the
amount of six percent (6%) of such delinquency.
The Borough ordinance establishing the rules and regulations on the water-sewer utility
provides, in part, that charges not paid on the due dates shall be subjected to a rate of interest
of eight percent (8%) per annum, up to $1,500.00 and eighteen percent (18%) per annum
interest over $1,500.00.
It appears, from an examination of the Collector's records, that interest on delinquent taxes and
utility charges was collected in accordance with the foregoing resolution and ordinance.
- 155 -
GENERAL COMMENTS (CONTINUED)
DECEMBER 31. 2023
Delinquent Taxes and Tax Title Liens
The detail of all unpaid taxes for 2023, prior years and tax title liens as reflected on the
Schedule of Taxes Receivable and Analysis of Property Tax Yield (Exhibit A-7) and Schedule of
Tax Title Liens (Exhibit A-8) is being properly carried in the Tax Collector's records. An abstract
taken from these records as at December 31, 2023, covering all unpaid charges on that date,
was verified with the accounting control figures shown in this report.
There was a tax sale held on September 12, 2023 and the sale was complete.
Inspection of tax sale certificates on file revealed that all tax sale certificates were available for
audit.
The following comparison is made of the number of tax title liens receivable on
December 31st of the last three (3) years.
Year
2023
2022
2021
Number of Liens
18
17
17
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 taxpaying basis.
Water & Sewer Utilitv Ooerating Fund
The Water & Sewer Utility Operating Fund Schedule of Consumer Accounts Receivable (Exhibit
D-8) as reflected in this audit report maintained by the Water-Sewer Collector was proven to the
detail records.
Cash Balances
The cash balances in all funds were verified by independent certifications obtained from the
depositories as at December 31, 2023.
Cash counts were made at various dates in all departments of the Borough and bank balances
were independently reconciled to the books and records provided for audit.
We have been advised that bank reconciliations for 2023 were not up to date until sometime in
2025, which is consistent with the delinquency of presentation of the records for audit. The new
CFO effective October 1, 2024 has made progress in bringing the records more current.
- 156 -
Revenues
GENERAL COMMENTS (CONTINUED)
DECEMBER 31. 2023
Receipts from licenses, fees, fines and costs, etc., for all departments, including the Municipal
Court, were checked to the records maintained to the extent deemed necessary.
Expenditures
The vouchers for all funds were examined to the extent deemed necessary to determine that
they carried the properly executed certifications as required by statute. Our examination of
expenditures revealed for the most part, compliance with procedures and requirements has
been adhered to.
There was a change to Fund Balance and cash disbursement for $37,700.76 in order to bring
the records into agreement. Due to the significant number of adjustments that were necessary
and the lateness of the audit, it is impossible without performing a "100%" audit, to determine
the correct change.
Payroll
An examination was made of the employees' compensation records for the year 2023 to
determine that salaries were paid in conformity with the amounts of salaries and wages
authorized by ordinance or agreements.
Our examination of payroll did not cover verification of the validity and reasonableness of the
allocation of salaries for individuals whose job encompasses activities that relate to more than
one of the Borough's operating funds or Departments. The allocation of salaries for individuals
whose duties encompass more than one fund or appropriation is done at the sole discretion of
the management of the Borough. It is proper and legal to allocate salaries amongst funds as
long as the duties of the individuals relate to the costs charged to the fund or appropriation.
Our audit revealed minor instances of untimely pension enrollments of new employees, certain
pensionable wages not reported, health benefit contribution not properly withheld, and in one
case, authorized salary increases not enacted. The amounts involved were not significant.
Miscellaneous Comments
The confirmation sent to the Local Board of Education verified that school taxes were paid
during December 31, 2023.
The surety bonds covering the Chief Financial Officer, Tax Collector and the Municipal Court
employees were tested for adequacy of coverage and were determined to be sufficient.
lnterfunds
The Balance Sheets of various funds reflect lnterfund Receivable/Payable as of December
31, 2023. The interfunds will be liquidated subsequent to yearend.
There are interfunds that are over one year old which must be addressed for liquidation.
The new Chief Financial Officer (effective October 1, 2024) is in the process of reviewing
these for liquidation.
- 157 -
GENERAL COMMENTS (CONTINUED)
DECEMBER 31. 2023
Miscellaneous Comments (Continued)
Construction Code Official
Our examination of the Uniform Construction Code Annual Report revealed the revenues for
2023 in accordance with the report were $159,589 and expenditures were $264,775. The
excess of expenditures over revenue should be reviewed for corrective action. The statutes
require (allow) that the revenue of the department be sufficient to support the expenditures.
The Report filed also revealed that the overhead allocation was in excess of the 12% limit.
These matters should be monitored for future compliance.
The separate report as required by the Local Finance Board Notice #17-15 for Uniform
Construction Code Fee was filed in conjunction with the issuance of this audit.
Aaed or Inactive Accounts
Finding 2022/23-1
Reserves, receivables, unexpended appropriations, improvements authorizations, payables
and reconciling items on bank reconciliations in all funds which are aged or inactive should
be reviewed on an ongoing basis for utilization, refund to the funding source or cancellation
to the appropriate fund balance. This matter has been suggested in all prior audits and no
action has been taken.
The CFO of record was part-time and has since retired, which is
probably the reason for lack of action on this matter. The new CFO effective October 1,
2024, has undertaken a review.
Technical Directives - State of New Jersey
N.J.A.C. 5:30-5.7 - General Ledger Accountina Svstem
The general ledger for 2023 was maintained in accordance with acceptable accounting
control standards. However, it was presented late and needed several adjustments to
present accurate balances.
N.J.A.C. 5:30-5.6 -Accounting for Governmental Fixed Assets
A complete inventory has not been updated and as a result not presented for audit
disclosure purposes.
This matter needs to be reviewed by the Administration for
updating.
N.J.A.C. 5:30-5.2 - Encumbrance Accounting
A complete encumbrance accounting purposes was maintained for 2023.
- 158 -
GENERAL COMMENTS (CONTINUED)
DECEMBER 31. 2023
Miscellaneous Comments (Continued)
Lenath of Service Awards Program
The Borough adopted a Length of Service Awards Program (LOSAP). The participants in
the program direct the investments within their individual accounts. A separate Accountants
Review Report was prepared on the program for the year ended December 31, 2023.
Internal Control Documentation
Statement on Auditing Standards 115 sets forth requirements upon the auditee that
includes the documentation of its internal controls.
Internal Controls should be in
conjunction with a financial procedure reviewed on an ongoing basis.
We suggest the
documentation should also include the internal controls that exist over grant compliance
along with providing for this documentation in conjunction with information relating to job
descriptions and procedures manual.
Administration and Accounting of State & Federal Grants
The acceptance of grant funds also places additional requirements upon the Borough with
respect to the Borough's system of internal control. Based upon the matrix of requirements
applicable to the specific grant, the Borough's internal controls are required to include
systems and policies and
procedures
designed
to
ensure with
the compliance
requirements. In addition, we suggest the Borough review all of the applicable grant
agreements and the Borough's system of internal controls in order to ensure the
Borough's internal controls are functioning at the requisite levels to meet the various
accounting and compliance requirements.
Cybersecurity
With the ever-increasing challenges relating to cybersecurity,
each organization
determines what particular assessment or combination of assessments best fits its
information security strategy. We suggest management continue to assess risks related
to cybersecurity along with the utilization of specialized assessments, which would also
include a periodic reporting mechanism to those charged with governance.
Other Officials Collectina Fees
Our reviews of the records maintained for other officials collecting fees, which were
designed to determine that minimum levels of internal control and accountability were
met, and that cash receipts were deposited or turned over to the Borough's Treasurer's
accounts within a 48-hour period as required by N.J.S.A. 40A:5-15. There were no
exceptions to report.
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GENERAL COMMENTS (CONTINUED)
DECEMBER 31. 2023
Miscellaneous Comments (Continued)
Capital Funds
General Capital Fund -
Analysis of Cash (Exhibit C-3) reflects overdrafts in nine (9)
Improvement Authorizations, three (3) of which are minor in amount. The overdrafts will be
resolved when the Borough conducts its annual bond anticipation note (BAN) sale, receives
NJDOT reimbursement, other grant reimbursement or the Borough provides funds in its
annual budget.
Water-Sewer Utility Capital Fund - Analysis of Cash (Exhibit D-1) reflects overdrafts of five
(5) Improvement Authorizations, two (2) of which are minor in amount.
The overdrafts
should be resolved when the NJl-Bank loan closes, the annual BAN sale related to this
occurs or the Borough provides funds in its annual budget.
It should be noted that the new CFO effective October 1, 2024 has undertaken a review of
the improvement authorizations for corrective action.
Deferred Charges
The Water-Sewer Utility Capital Fund Improvement Authorization #20-17 Water-Sewer
Flood Mitigation Generator reflected an overexpenditure of $63,601.50. This is reflected on
the balance sheet as a "Deferred Charges" and must be raised in subsequent year's
budgets. Expenditures should be limited to funds available.
The Water-Sewer Utility Operating Fund reflected an "Deficit in Operations" of $595.27.
This is a result of an excess of expenditures over revenue, which must be raised in the next
subsequent year's budget. A lower level of anticipated revenue is the primary cause.
Presentation of Financial Statements
Finding 2022/23-2
For the past several years the records presented for audit by the former CFO (retired
September 30, 2024) have been significantly delinquent. This condition is problematic since
it affects several matters related to the finances of the Borough. The CFO of record, retired
September 30, 2024, and his records upon retirement were still delinquent.
The Governing Body and the NJ DCA is aware of this condition in spite of assurances by the
former CFO related to becoming more current.
The financial statements and underlying accounting records prepared by the Chief Financial
Officer ("CFO") need to be presented for audit in a more-timely manner.
The new CFO effective October 1, 2024, has been diligently attempting to bring the records
more current.
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GENERAL COMMENTS (CONTINUED)
DECEMBER 31. 2023
Miscellaneous Comments <Continued)
With respect to Findings 2022/23-1 and 2022/23-2, there were recommendations in the
December 31, 2022, audit, however, due to the late filing of the 2022 audit, it was
impractical to implement and therefore these recommendations are unwarranted at this time.
Appreciation
I desire to express my appreciation for the cooperation received from the Borough Officials
and Employees and the courtesies extended to us during the course of the audit.
A formal exit conference, in accordance with audit requirements generally accepted in the
United States of America, has been held on the contents of this audit with the appropriate
Borough Officials.
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RECOMMENDATIONS
DECEMBER 31, 2023
None
The foregoing comments and recommendations noted in our review were not of such a
magnitude that they would affect my ability to express an opinion on the financial statements
taken as a whole.
A Corrective Action Plan for the 2022 audit (prior year) recommendations was adopted on
March 17, 2025.
Should any questions arise as to my comments or recommendations, or should you desire
assistance in implementing my recommendations, please do not hesitate to call me.
Very truly yours,
/Jt;Sfv4
Gerard Stankiewicz
Certified Public Accountant
Registered Municipal Accountant #431
For the Firm
SAMUEL KLEIN AND COMPANY, LLP
- 162 -
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Margaret Riggio
Borough Clerk, Purchasing Agent, Registrar of Vital Statistics
George Lang
Chief Financial Officer
Pamela Lewis
Tax Collector/Water-Sewer Collector
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