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2015 Middlesex Borough Municipal Audits

BID #: N/A

ISSUED: 5/3/2016

DUE: TBD

VALUE: TBD

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Executive Summary

The Borough of Middlesex's financial statements and supplementary data for the years ended December 31, 2015 and 2014 have been audited by Hodulik & Morrison, P.A. The audit encompasses the various funds of the Borough, including the Current Fund, Trust Fund, General Capital Fund, and Swimming Pool Utility Fund. The report includes an independent auditor's report, reports on internal control and compliance, and detailed financial statements and supplementary information as per the table of contents. The audit was conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards. The financial statements provide a comparative view of the Borough's financial position and operations over the two-year period. Key areas covered include fund balances, revenues, expenditures, debt, and compliance with legal and regulatory requirements. Various schedules offer detailed breakdowns of accounts, such as cash, receivables, payables, and reserves. Risk management practices, pension plans, and post-retirement health care benefits are also addressed. Noteworthy internal control findings and recommendations are provided for the Borough to improve its financial management processes. The audit report highlights specific control deficiencies and suggests that the Borough maintain a complete General Ledger for the Trust Fund and General Capital Fund. Recommendations are included to improve the internal control environment or result in other operating efficiencies. Adherence to New Jersey statutes and regulations, including compliance with the Local Public Contracts Law and the provisions of the Local Fiscal Affairs Law, were also examined.

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Document Text

--- Document: 2015 Middlesex Borough Municipal Audits Document ---
BOROUGH
OF MIDDLESEX
COUNTY OF MIDDLESEX
NEW JERSEY
FINANCIAL
STATEMENTS
AND
SUPPLEMENTARY
DATA
AND
INFORMATION
FOR THE YEARS ENDED
DECEMBER 31, 2015 AND 2014
WITH
REPORT OF INDEPENDENT AUDITORS
HODULIK
& MORRISON,
P.A.
CERTIFIED PUBLIC ACCOUNT ANTS
REGISTERED MUNICIPAL ACCOUNT ANTS
HIGHLAND PARK, N.J.


PART I
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
TABLE OF CONTENTS
PAGE(S)
Independent
Auditor's Report
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
2-4
5-6
FINANCIAL
STATEMENTS
7
A
A- 1
A-2
A-3
B
B- 1
C
C- 1
D
D- 1
D-2
D-3
D-4
Current Fund - Comparative
Balance Sheet - Regulatory Basis - December 31,
2015 and 2014
Current Fund - Comparative
Statement of Operations and Change in
Fund Balance - Regulatory Basis
Current Fund - Statement of Revenues - Regulatory Basis
Current Fund - Statement of Expenditures
- Regulatory Basis
Trust Fund - Comparative
Balance Sheet - Regulatory Basis - December 31,
2015 and 2014
Trust Assessment Fund - Statement of Fund Balance - Regulatory Basis
General Capital Fund - Comparative
Balance Sheet - Regulatory Basis -
December 31, 2015 and 2014
General Capital Fund - Statement of Fund Balance - Regulatory Basis
Swimming Pool Utility Fund - Comparative
Balance Sheet - Regulatory
Basis - December 31, 2015 and 2014
Swimming Pool Utility Operating Fund - Comparative
Statement of
Operations and Change in Fund Balance - Regulatory Basis
Swimming Pool Utility Capital Fund - Statement of Change in Fund Balance
Swimming Pool Utility Operating Fund - Statement of Revenues
Swimming Pool Utility Operating Fund - Statement of Expenditures
8
9
10
11 - 19
20
21
22
23
24
25
26
27
28
29 - 57
NOTES TO FINANCIAL
STATEMENTS
58
PART II - REQUIRED
SUPPLEMENTARY
INFORMATION
Sch. 1
Schedule of the Borough's
Share of the Net Pension Liability (PERS)
Sch.2
Schedule of the Borough's
Contributions
(PERS)
Sch.3
Schedule of the Borough's
Share of the Net Pension Liability (PFRS)
Sch.4
Schedule of the Borough's
Contributions
(PFRS)
59
60
61
62
Notes to Required Supplementary
Pension Information
63


BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
TABLE OF CONTENTS
PAGE(S)
64
PART III -SUPPLEMENTARY
SCHEDULES
65
Current Fund
A-4
A-5
A-6
A-7
A-8
A-9
A-10
A-ll
A-12
A-13
A-14
A-IS
A-16
A-17
A-18
A-19
A-20
A-21
Schedule of Current Fund Cash
Schedule of Petty Cash and Change Funds
Schedule of Due from State of New Jersey - for Allowable
Deductions per Ch. 73, P.L. 1976
Schedule of Property Taxes Receivable and Levy Analysis
Schedule of Non budget Revenues & Various Accounts Receivables
Schedule of Sewer Flow Charges Receivable
Schedule of Interfunds Receivable/Payable
Schedule of 20 14 Appropriation
Reserves
Schedule of Sewer Flow Charge Overpayments
Schedule of Taxes Payable
Schedule of Changes in Various Accounts Pay abies & Reserves
Schedule of Local District School Tax - Deferred School Taxes
Schedule of Deferred Charges
Schedule of State Grants Receivable
Schedule of Due from Current Fund - Grants Fund
Schedule of Reserve for State Grants - Appropriated
Schedule of Reserve for State Grants - Unappropriated
Schedule of Due from General Capital Fund - Grant Fund
66
67
68
69
70
71
72
73 -78
79
80
81
82
82
83
84
85 - 86
87
87
Trust Fund
88
B-2
B-3
B-4
B-5
B-6
Analysis of Trust Assessment
Cash and Investments
Schedule of Assessment Liens
Schedule of Due to General Capital Fund - Assessment Trust Fund
Schedule of Due to Current Fund - Assessment Trust Fund
Schedule of Cash and Reserve Activity
89
89
90
90
91 - 92
General Capital Fund
93
C-2
C-3
C-4
C-5
C-6
C-7
C-8
C-9
C-10
C-ll
C-12
Schedule of General Capital Cash and Investments - Treasurer
Analysis of General Capital Cash and Investments
Schedule of Various Grants, Loans, and Other Receivables
Schedule of Deferred Charges to Future Taxation - Funded
Schedule of Deferred Charges to Future Taxation - Unfunded
Schedule of lnterfunds
Schedule of Improvement
Authorizations
Schedule of General Serial Bonds
Schedule of Capital Leases Payable - MCIA
Schedule of Loans Payable - New Jersey 1987 Green Trust Fund
Schedule of Loans Payable - New Jersey
Green Trust Fund - 1989
94
95
96
97
98
99
100 - 101
102
103
104
105


BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
TABLE OF CONTENTS
PAGE(S)
General Capital Fund (Cont'd.)
C-13
C-14
C-15
C-16
C-17
Schedule of Various Reserves
Schedule of Reserve for Capital Improvement
Fund
Schedule of Loans Payable - NJ Environmental
Infrastructure
Trust Loan
and Fund Loan Payable
Schedule of Bond Anticipation
Notes
Schedule of Bonds and Notes Authorized but not Issued
106
107
108
109
110
Swimming Pool Utility Fund
111
D-5
D-6
D-7
D-8
D-9
D-10
D-ll
D-12
D-13
D-14
D-15
D-16
D-17
D-18
D-19
D-20
D-2l
D-22
Schedule of Swimming Pool Utility Cash and Investments - Treasurer
Analysis of Swimming Pool Capital Cash and Investments
Schedule of Miscellaneous
Receipts - Swimming Pool Utility Operating Fund
Schedule of Fixed Capital-
Swimming Pool Utility Capital Fund
Schedule of Fixed Capital Authorized and Uncomplete
Schedule of Accounts Payable - Swimming Pool Utility Fund
Schedule of 20 14 Appropriation
Reserves
Schedule of Reserve for Snack Bar Operations
Schedule of Interfunds Receivable/Payable
Schedule of Capital Improvement
Fund
Schedule of Reserve for Amortization
Schedule of Deferred Reserve for Amortization
Schedule of Due to Swimming Operating Fund
Schedule of Improvement
Authorizations
Schedule of Bond Anticipation
Notes
Schedule of Accrued Interest on Bonds and Notes
Schedule of General Serial Bonds
Schedule of Bonds and Notes Authorized but not Issued
112
113
114
115
115
115
116
117
118
119
119
120
120
121
122
123
124
125
PART IV - SUPPLEMENTARY
DATA
126
Combined Balance Sheet - All Funds for the Year Ending Decem ber 31, 2015
Comparative
Statement of Operations - Change in Fund Balance - Current Fund
Comparative
Statement of Operations - Change in Fund Balance - Swimming
Pool Utility Operating Fund
Comparative
Schedule of Tax Rate Information
Comparison of Tax Levies and Collection Currently
Delinquent Taxes and Tax Title Liens
Property Acquired for Tax Title Lien Liquidation
Comparative
Schedule of Fund Balances
Officials in Office and Surety Bonds
127
128
129
130
130
131
131
131
132
PART V - GENERAL COMMENTS
AND RECOMMENDATIONS
133
General Comments
Recommendations
134 - 141
142


BOROUGH OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
PART I
INDEPENDENT
AUDITOR'S
REPORT
AND
FINANCIAL
STATEMENTS
-1-


HODULIK
& MORRISON,P.A.
CERTIFIED
PUBLIC ACCOUNTANTS
REGISTERED
MUNICIPAL
ACCOUNTANTS
PUBLIC SCHOOL ACCOUNTANTS
1102 RARITAN
AVENUE,
P.O. BOX 1450
HIGHLAND
PARK, NJ 08904
(732) 393-1000
(732) 393-1196 (FAX)
MEMBERS
OF:
AMERICAN
INSTITUTE
OF CPA'S
NEW JERSEY
SOCIETY
OF CPA'S
REGISTERED
MUNICIPAL
ACCOUNTANTS
OF N.J.
ANDREW
G. HODULlK,
CPA, RMA, PSA
ROBERT
S. MORRISON,
CPA, RMA, PSA
JO ANN BOOS,
CPA, PSA
INDEPENDENT
AUDITOR'S
REPORT
Honorable Mayor and Members
of the Borough Council
Borough of Middlesex
County of Middlesex, New Jersey
Report on the Financial Statements
We have audited
the accompanying
balance
sheets - regulatory
basis of the various
funds of the Borough
of
Middlesex,
County of Middlesex,
New Jersey, as of and for the year ended December
31, 2015 and 2014, the
statements
of operations
and changes
in fund balance - regulatory
basis for the year then ended and the related
statements of revenues - regulatory
basis and statements of expenditures
- regulatory basis of the various funds for
year ended December
31, 2015, and the related notes to the financial statements,
which collectively
comprise the
basic financial statements of the Borough as listed in the table of contents.
Management's
Responsibility
for the Financial Statements
Management
is responsible
for the preparation and fair presentation
of these financial statements in accordance with
the financial reporting provisions
of the Division of Local Government
Services, Department of Community Affairs,
State of New Jersey. Management
is also responsible
for the design, implementation,
and maintenance
of internal
control
relevant
to the preparation
and
fair presentation
of financial
statements
that
are free from
material
misstatement,
whether due to error or fraud.
Auditor's
Responsibility
Our responsibility
is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with auditing standards generally accepted in the United States of America, the standards applicable to
financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States
and the audit requirements
prescribed
by the Division of Local Government
Services, 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 of 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 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. 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
opinion.
-2-


Basis for Adverse Opinion on u.s. Generally Accepted Accounting Principles
As described in Note 2, these financial statements were prepared in conformity with accounting practices prescribed
or permitted by the Division of Local Government
Services, Department of Community Affairs, State of New Jersey,
United States of America, that demonstrate
compliance with the modified accrual basis, with certain exceptions, and
the budget laws of New Jersey, which is a comprehensive
basis of accounting
other than accounting
principles
generally
accepted
in the United
States
of America.
These
prescribed
principles
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. Accordingly,
the accompanying
financial statements -
regulatory basis are not intended to present financial position and results of operations in accordance with accounting
principles generally accepted in the United States of America. The effect on the financial statements between these
regulatory
accounting
practices
and accounting
principles
generally
accepted
in the United
States of America,
although not reasonably determinable,
are presumed to be material.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion,
because
of the significance
of the matter discussed
in the "Basis for Adverse
Opinion
on U.S.
Generally Accepted Accounting
Principles"
paragraph, the financial statements referred to in the first paragraph do
not present fairly, in accordance
with accounting principles
generally accepted in the United States of America, the
financial positions of the Borough of Middlesex,
County of Middlesex,
New Jersey, as of December
31, 2015, the
changes in its financial position, or, where applicable, its cash flows for the year then ended. The financial statements
- regulatory
basis referred to in the first paragraph
do not include the Statement
of Governmental
Fixed Assets,
which should be included to conform with the basis of accounting
described
in Note 2. The amount that should be
recorded for Governmental
Fixed Assets is not known.
Opinion on Regulatory Basis of Accounting
In our opinion, except for the effect on the financial statements
of the omission of the Statement of Governmental
Fixed Assets, the financial statements - regulatory basis referred to above present fairly, in all material respects, the
financial position - regulatory
basis of the various funds of the Borough of Middlesex,
County of Middlesex, New
Jersey as of December
31,2015
and 2014 and the results of operations
and changes in fund balance - regulatory
basis for the year then ended and the related statements of revenues - regulatory basis and statements of expenditures
- regulatory basis of the various funds for the year ended December 31, 2015, on the basis of accounting described in
Note 2.
Other Matters
Required Supplementary
Information
Accounting
principles
generally
accepted
in the United
States of America
require that pension plan information,
including the Notes thereto, (Required
Supplementary
Information
- Part II), as listed in the table of contents be
presented to supplement
the basic financial statements.
Such information,
although not a part of the basic financial
statements is required by the Governmental
Accounting
Standards Board, who considers it to be an essential part of
financial reporting
for placing the basic financial statements
in an appropriate
operational,
economic,
or historical
context. We have applied certain limited procedures
to the required supplementary
information
in accordance
with
auditing standards generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information
and comparing
the information
for consistency
with management's
responses to our inquires, the basic financial statements,
and other knowledge
we obtained during our audit of the
basic financial statements.
We do not express an opinion or provide any assurance on the information
because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
- 3-


Other Information
Our audit was made for the purpose of forming an opinion on the financial statements of the Borough of Middlesex,
County of Middlesex,
New Jersey. The information
included in Part III - Supplementary
Schedules and Part IV -
Supplementary
Data, 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 Middlesex,
County of Middlesex, New Jersey. The Part
III - Supplementary
Schedules are the responsibility
of management
and were derived from and relate 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,
and 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 schedules
and information
contained
in Part IV - Supplementary
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 Reporting Required by Government
Auditing Standards
In accordance
with Government Auditing Standards, we have also issued a report dated May 3, 2016 on our
consideration
of the Borough
of Middlesex's
internal
control
over financial
reporting
and on our tests of its
compliance
with certain provisions
of laws, regulations,
contracts
and grants 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 Middlesex's
internal
control
over
financial
reporting
and
COil;;:&: ~ jJ~
!A.
HODULIK
& MORRISON,
P.A.
Certified Public Accountants
Registered Municipal Accountants
Andrew G. Hodulik
Registered Municipal Accountant
No. 406
Highland Park, New Jersey
May 3, 2016
-4-


HODULIK
& MORRISON,
P.A.
CERTIFJED
PUBLIC ACCOUNTANTS
REGISTERED
MUNICIPAL
ACCOUNTANTS
PUBLIC
SCHOOL ACCOUNTANTS
1102 RARITAN
AVENUE,
P.O. BOX 1450
HIGHLAND
PARK, NJ 08904
(732) 393-1000
(732) 393-1196
(FAX)
ANDREW
G. HODULIK,
CPA, RMA, PSA
ROBERT
S. MORRISON,
CPA, RMA,
PSA
MEMBERS
OF:
AMERICAN
INSTITUTE
OF CPA'S
NEW JERSEY
SOCIETY
OF CPA'S
REGISTERED
MUNICIPAL
ACCOUNTANTS
OF N.J.
JO ANN BOOS,
CPA, PSA
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
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and Members
of the Borough Council
Borough of Middlesex
County of Middlesex, New Jersey
We have audited, in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States and audit requirements as prescribed by the Division of
Local Government Services, Department of Community Affairs, State of New Jersey, the financial
statements - regulatory basis, of the Borough of Middlesex as of and for the year ended December 31,
2015, and the related notes to the financial statements, which collectively comprise the Borough of
Middlesex's financial statements and have issued our report thereon dated May 3, 2016. Our report
expressed a qualified opinion on the financial statements in conformity with this regulatory basis due to
the omission of the Statement of Governmental Fixed Assets. Our report was also modified to reflect the
departures from accounting principles generally accepted in the United States of America, as disclosed in
Note 2, that are embodied in the Other Comprehensive Basis of Accounting utilized for financial
statement presentations.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Borough of
Middlesex'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 opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Borough of
Middlesex's internal control.
Accordingly, we do not express an opinion on the effectiveness of the
Borough of Middlesex'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.
-5-


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.
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
and therefore, material weaknesses or significant deficiencies
may
exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies
in internal control that we consider to be material
weaknesses.
We did identify a certain deficiency
in
internal control, described in the General Comments
section of the Report of Audit that we consider to be a
significant deficiency. (2015-1).
Compliance and Other Matters
As part of obtaining reasonable
assurance
about whether the Borough of Middlesex's
financial statements
are free of material misstatement,
we performed
tests of its compliance with certain provisions
of laws,
regulations,
contracts and grant agreements,
noncompliance
with which could have a direct and material
effect on the determination
of financial statement amounts.
However, providing an opinion on compliance
with those provisions
was not an objective
of our audit and, accordingly,
we do not express
such an
opinion.
The results of our tests disclosed no instances of noncompliance
or other matters that are required
to be reported under Government Auditing
Standards
and audit requirements as prescribed by the Division
of Local Government Services, Department
of Community Affairs, State of New Jersey.
We noted other matters
involving
internal
control
over financial
reporting
that we have
reported
to
management of the Borough of Middlesex
in the General Comments section of the Report of Audit.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness
of the entity'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 entity's
internal control and compliance,
Accordingly,
this communication
is not suitable for any other purpose.
HODULIK & MORRISON,
P.A.
Certified Public Accountants
Public School Accountants
Highland Park, New Jersey
May 3,2016
- 6-


FINANCIAL
STATEMENTS
-7-


Exhibit-A
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
DECEMBER 31. 2015 AND DECEMBER 31. 2014
BALANCE
BALANCE
LIABILITIES, RESERVES
BALANCE
BALANCE
ASSETS
REF.
DEC. 312015
DEC. 312014
AND FUND BALANCE
REF.
DEC. 312015
DEC. 312014
Cash and Investments - Treasurer
A-4
$
6,481,945.09
$
3,484,772.04
Liabilities:
Cash - Change Fund
A-5
500.00
500.00
Appropriation Reserves
A-3,A-II
$
1,083,849.04
$
1,039,328.24
Due from State of N.J. per Ch. 20,
Reserve for Encumbrances
A-3,A-II
151,878.02
169,197,60
PL. 1976
A-6
39161.05
34992.30
Prepaid Taxes
A-7
227,834.83
167,198.35
Various Payables
A-14
67,803.32
63,138.30
6521606.14
3520264.34
Various Reserves
A-14
1,536,039,88
48,430.34
Sewer Flow Charge Overpayments
A-12
224,801.87
Receivables With Offsetting Reserves:
Due to Federal & State Grant Fund
A-IO
875239.19
456653.77
Taxes Receivable
A-7
633,246.09
823,307.17
Tax Title Liens
A-7
323,406.72
305,431.67
3,942,644.28
2,168,74847
Property Acquired for Taxes (At
Assessed Valuation)
A-7
1,423,139.00
1,423,139.00
Reserve for Receivables
Reserve
3,239,719.17
2,625,631.80
Revenue Accounts Receivable
A-8
21,051.84
32,254.84
Fund Balance
A-I
2793961.86
I 701 515.87
Sewer Flow Charges Receivable
A-9
810,881.08
21,445.91
Interfunds Receivable
A-IO
2799444
20053.21
Total Regular Fund
9976325.31
6495896.14
~
3239719.17
2625631.80
Deferred Charges:
2012 Emergency - Hurricane Sandy
A-16
160,000.00
240,000.00
20 II Emergency - Hurricane Irene
A-16
55000,00
110000.00
215000.00
35000000
Total Regular Fund
9976325.31
6495896.14
State and Federal Grant Fund:
State and Federal Grant Fund:
Reserve for State and Federal Grants:
Grants Receivable
A-17
6,489.00
6,782.00
Appropriated
A-19
385,922.56
385,564.83
Due from Current Fund
A-18
475,850.34
456,653.77
Unappropriated
A-20
69,724.88
36,163.70
Due from General Capital Fund
A-21
23775.00
23775.00
Reserve for Encumbrances
A-19
50466.90
65482.24
Total State and Federal Grant Fund
506114.34
487210.77
Total State and Federal Grant Fund
506114.34
487210.77
$
10482439.65
$
6983
106.91
$
10 482 439.65
$
6983
106.91
Deferred School Taxes:
Balance of Tax
A-15
$
11,403,634.00
$
11,160,722.00
Deferred
A-15
II 403 634.00
II 160722.00
School Taxes Payable
$
$
Note: See Notes to Financial Statements


Exhibit A-I
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
CURRENT FUND
COMPARATIVE STATEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE - REGULATORY BASIS
FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014
REVENUE AND OTHER INCOME REALIZED
REF.
YEAR 2015
YEAR 2014
Fund Balance Utilized
A-I, A-2
$
1,019,770.00
$
996,000.00
Miscellaneous Revenues Anticipated
A-2
4,103,631.81
3,509,187.13
Receipts from Delinquent Taxes
A-2
826,992.62
1,029,346.73
Receipts from Current Taxes
A-7
39,966,937.15
39,061,746.12
Non-Budget Revenue
A-2
180,334.80
207,584.13
Other Credits to Income:
Unexpended Balances of Approp. Reserves
A-11
832,252.40
378,821.66
Interfunds Advanced/Returned
- Statutory Animal Excess
Due from Animal Control Fund
A-I0
8092.00
5,527.28
Total Revenues
46,938,010.78
45,188,2l3.05
EXPENDITURES
AND OTHER CHARGES
Budget Appropriations:
Operating
Salaries and Wages
A-3
5,792,421.07
5,547,477.95
Other Expenses
A-3
7,545,045.19
7,623,302.35
State and Federal Programs Off-Set by Revenue
A-3
34,682.00
66,570.86
Municipal Debt Service
A-3
1,810,390.49
1,747,106.85
Capital Improvements
A-3
65,000.00
65,000.00
Deferred Charges and Statutory Expend.-Mun.
A-3
1,327,820.00
1,281,326.00
County Tax
A-l3
5,598,711.81
5,609,423.08
Local District School Taxes
A-l3
22,643,783.00
22,058,200.00
Interfunds Advanced - Net
A-lO
7941.23
6416.82
Total Expenditures
44825794.79
44,004,823.91
Excess in Revenue
2,112,215.99
1,183,389.14
FUND BALANCE
Balance - January 1
A
1 701 515.87
1,514,126.73
3,813,731.86
2,697,515.87
Decreased by:
Utilization as Anticipated Revenue
A-I
1 019770.00
996000.00
Balance - December 31
A
$
2,793,961.86
$
1,701,515.87
Note: See Notes to Financial Statements
- 9-


ExhibitA-2
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY
NEW JERSEY
CURRENT
FUND
STATEMENT OF REVENUES
- REGULATORY
BASIS
FOR THE YEAR ENDED DECEMBER
31, 2015
ANTICIPATED
2015
Total
EXCESS OR
REF.
BUDGET
Budget
REALIZED
(DEFICIT)
Fund Balance Anticipated
A-I
$
1019770.00
$
1019770.00
$
1019770.00
$
Miscellaneous
Revenues:
Licenses:
Alcoholic
Beverages
12,600.00
12,600.00
13,534.00
934.00
Other
37,500.00
37,500.00
36,914.00
(586.00)
Fees and Permits
67,000.00
67,000.00
87,706.28
20,706.28
Fines and Costs:
Municipal
Court
288,980.00
288,980.00
342,919.61
53,939.61
Interest and Costs on Taxes
150,000.00
150,000.00
193,277.68
43,277.68
Interest on Investments
and Deposits
34,700.00
34,700.00
65,087.96
30,387.96
Television Franchise
Fees
96,763.00
96,763.00
96,763.24
0.24
Payment in Lieu of Taxes - Prebyterian
Homes
63,000.00
63,000.00
60,170.55
(2,829.45)
Sewer Rents Receivable
494,000.00
494,000.00
809,693.88
315,693.88
Host Community
Benefit Funds
90,000.00
90,000.00
84,32939
(5,670.61)
Consolidated
Municipal Property Tax Relief Aid
214,201.00
214,201.00
214,201.00
Energy Receipts Taxes
1,565,613.00
1,565,613.00
1,565,613.00
Dedicated
Uniform Construction
Code Fees Offset
with Appropriations
(NJ.S.A.
40A:4-36
and NJ.A.C.
5:23-4.17):
Uniform Construction
Code Fees
187,000.00
187,000.00
411,413.00
224,413.00
Hazardous
Waste Facilities Siting Act (NJ.S.A.
13-15-80)
20,000.00
20,000.00
20,000.00
Public and Private Revenues Offset with Approps.:
Body Armor Replacement
Grant - CY
2,946.00
2,946.00
2,946.00
Middlesex
County - Info. Assis & Transp. Assist -
Older American Act of 1965
14,381.00
14,381.00
14,381.00
Municipal Alliance on Alcoholism
and Drug Abuse
17,355.00
17,355.00
17,355.00
Other Specialltems:
Cellular Phone Tower Lease
100,000.00
100,000.00
56,209.22
(43,790.78)
FEMA - Hurricane
Irene
11 117.00
11 117.00
11 117.00
Total Miscellaneous
Revenues
A-l,A-8
3467
156.00
3467
156.00
4 103631.81
636475.81
Receipts from Delinquent
Taxes
A-l,A-7
883000.00
883000.00
826992.62
(56,00738)
Subtotal General Revenues
5,369,926.00
$
5369926.00
5950394.43
580468.43
Amount to be Raised by Taxes for Support of
Municipal Budget:
Local Tax for Municipal
Purposes
Including
Reserve for Uncollected
Taxes
A-7
11,619,410.80
11,619,410.80
11,889,486.08
270,075.28
Minimum Library Tax
A-7
467044.26
467044.26
467044.26
Total Amount to be Raised by Taxes
for Support of Municipal
Budget
12086455.06
12,086,455.06
12,356,53034
270075.28
Budget Totals
17,456,381.06
17,456,381.06
18,306,924.77
$
850543.71
Non-Budget
Revenues
A-l,A-4
180334.80
$
17 456 381.06
$
17 456 381.06
$
18,487,259.57
Ref.
A-3
A-3
( ) Denotes Deficit
Note:
See Notes to Financial
Statements
-10 -


BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY
NEW JERSEY
CURRENT
FUND
STATEMENT
OF EXPENDITURES
- REGULATORY
BASIS
FOR THE YEAR
ENDED
DECEMBER
31 2015
EXPENDED
2015 BUDGET
BUDGET
AFTER
MODIFICATION
PAID OR
CHARGED
ENCUMBERED
RESERVED
OPERATIONS
WITHIN
"CAPS"
GENERAL
GOVERNMENT:
General
Administration
Salaries
& Wages
s
160,000.00
$
58,407.99
$
$
$
58,407.99
Other Expenses
5,000.00
5,000.00
68.00
4,932.00
Mayor
and Council
Salaries
and Wages
12,000.00
12,000.00
1l,999.76
0.24
Other
Expenses
10,000.00
10,000.00
7,411.51
836.66
1,751.83
Municipal
Clerk
Salaries
and Wages
155,371.00
155,371.00
144,434.47
10,936.53
Other
Expenses
8,150.00
8,150.00
7,071.16
675.99
402.85
Postage
for All Departments
Other Expenses
26,000.00
26,000,00
20,186.49
152.98
5,660.53
""""
Printing
and Advertising
""""
Other Expenses
12,000,00
12,000.00
4,980.80
7,019.20
Financial
Administration
(Treasury)
Salaries
and Wages
120,310.00
114,010,00
95,156.27
18,853,73
Other Expenses
24,710.00
24,710,00
18,605.04
1,657,70
4,447.26
Elections
Other
Expenses
6,000.00
6,000.00
5,378.39
621.61
Annual
Audit
Other
Expenses
45,000.00
45,000,00
3,510.00
41,490,00
Revenue
Administration
(Tax Collection)
Salaries
and Wages
71,487.00
71,487,00
71,175,88
311.12
Other Expenses
1l,160,00
11,160.00
6,809,88
1,507,97
2,842.15
Tax Assessment
Administration
Salaries
and Wages
32,228,00
32,228,00
20,962,82
11,265,18
Other
Expenses
2,950,00
3,450,00
2,937.19
512,81
Legal
Services
Other
Expenses
117,000,00
117,000,00
79,349,08
717.50
36,933.42
Liquidation
of Tax Title Liens
and
Foreclosed
Property
500,00
500,00
500,00
Engineering
Services
Other
Expenses
60,000,00
60,000,00
28,676,92
31,323,08
Computer
Data Services
Salaries
and Wages
80,340,00
80,340,00
80,292,90
47,10
Other
Expenses
121,800,00
121,800,00
72,961.68
48,389.37
448.95
Environmental
Legal
& Engineering
Services
and Costs
Other
Expenses
20,000,00
20,000,00
11,528,05
8,471,95
ExhibitA-3
Page
1 of9
UNEXPENDED
BALANCE
CANCELLED


BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2015
EXPENDED
2015 BUDGET
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
ENCUMBERED
RESERVED
GENERAL GOVERNMENT (CONT'D):
LAND USE ADMINISTRATION:
Planning Board
Other Expenses
Zoning Board of Adjustment
Salaries and Wages
Other Expenses
Code Enforcement
Salaries and Wages
Other Expenses
$
36,050.00
$
36,050.00
$
19,787.73 $
428.61 $
15,833.66
$
3,600.00
3,600.00
2,975.00
625.00
13,100.00
13,100.00
9,095.03
4,004.97
20,163.00
20,163.00
20,027.90
135.10
12,000.00
12,000.00
50.00
11,950.00
25,000.00
22,247.86
22,247.86
16,000.00
14,657.91
14,657.91
272,000.00
267,270.17
267,270.17
123,500.00
123,500.00
123,475.03
24.97
2,000,000.00
2,069,000.00
2,068,990.59
9.41
INSURANCE:
'""'"
N
Temporary Disability Insurance
Long-Term Disability Insurance
Liability Insurance
Workmen's Compensation
Employee Group Insurance
PUBLIC SAFETY:
Police Department
Salaries and Wages
Other Expenses
Juvenile Conference Committee
Salaries and Wages
Other Expenses
Office of Emergency Management
Salaries and Wages
Other Expenses
Aid to Volunteer Ambulance Companies
3,044,500.00
3,038,500.00
2,853,256.92
185,243.08
137,600.00
143,600.00
113,112.85
24,787.96
5,699.19
2,069.00
2,069.00
2,022.72
46.28
250.00
250.00
250.00
4,000.00
4,000.00
4,000.00
18,000.00
18,000.00
8,874.93
908.68
8,216.39
25,000.00
25,000.00
25,000.00
ExhibitA-3
Page 2 of9
UNEXPENDED
BALANCE
CANCELLED


BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2015
EXPENDED
2015 BUDGET
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
RESERVED
PUBLIC SAFETY (CONT'Dl:
Fire Department
Other Expenses
$
121,650.00
$
121,650.00
$
112,508.97 $
Hazardous Waste Facilities Tax-
Other Expenses
5,000.00
5,000.00
Fire Hydrant Fees
Other Expenses
210,000.00
210,000.00
190,237.41
Municipal Prosecutor's Office
Salaries and Wages
24,399.00
24,399.00
24,398.40
Municipal Court
Salaries and Wages
143,788.00
143,038.00
130,704.36
Other Expenses
13,000.00
13,750.00
12,292.18
PUBLIC WORKS:
~
CJJ
Road Repairs and Maintenance
Salaries and Wages
438,785.00
438,785.00
409,131.89
Other Expenses
114,469.00
114,469.00
83,263.00
Shade Tree Commission
Salaries and Wages
2,483.00
2,483.00
2,422.42
Other Expenses
40,000.00
40,000.00
27,255.00
Solid Waste Collection
Salaries and Wages
88,000.00
88,000.00
79,900.38
Garbage and Trash Removal
Salaries and Wages
723,458.00
723,458.00
642,755.66
Other Expenses
54,600.00
54,600.00
40,044.55
ENCUMBERED
5,312.44 $
25.00
1,159.39
17,376.88
12,095.00
8,179.92
3,828.59
$
5,000.00
19,762.59
0.60
12,308.64
298.43
29,653.11
13,829.12
60.58
650.00
8,099.62
80,702.34
6,375.53
ExhibitA-3
Page 3 of9
UNEXPENDED
BALANCE
CANCELLED


BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2015
EXPENDED
2015 BUDGET
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
ENCUMBERED
RESERVED
PUBLIC WORKS (CONT'D):
Community Services Act
(Condominium Community Costs)
Other Expenses
$
43,500,00
$
43,500,00
$
43,458.40 $
s
41.60
$
Building and Grounds
Other Expenses
83,000,00
88,000,00
79,018,17
6,034.43
2,947.40
Rental of Rescue Squad Building
Other Expenses
7,200,00
7,200,00
6,600,00
600,00
Maintenance of Communications Equipment
Other Expenses
1,000.00
1,000,00
1,000,00
HEALTH AND HUMAN SERVICES:
Public Health Services (Board of Health)
I-'
Salaries and Wages
7,905,00
7,905,00
6,718,23
1,186,77
~
Other Expenses
64,535,00
64,535,00
64,419.46
115,54
Animal Control
Other Expenses
30,000,00
30,000,00
16,333,34
13,666,66
Senior Nutrition - Program Costs
Salaries and Wages
8,069,00
8,069,00
2,826.48
5,242,52
Title III Senior Medical Transportation - Program Costs
Salaries and Wages
9,000,00
9,000,00
3,592,26
5,407,74
Title III Information & Assistance - Program Costs
Salaries and Wages
31,100,00
31,100,00
28,037,64
3,062,36
PARKS AND RECREATION:
Recreation Services and Programs
Salaries and Wages
85,394,00
85,394,00
79,786,89
5,607,11
Other Expenses
29,260,00
29,260,00
20,585,52
4,641.16
4,033.32
Parks and Playgrounds
Salaries and Wages
224,689,00
224,689,00
217,645.26
7,043,74
Other Expenses
35,950,00
37,950,00
33,319,02
2,581.90
2,049,08
ExhibitA-3
Page 4 of9
UNEXPENDED
BALANCE
CANCELLED


BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 3I 2015
EXPENDED
2015 BUDGET
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
ENCUMBERED
RESERVED
PARKS AND RECREATION (CONT'Dl:
Celebration of Public Events
Other Expenses
Recreational Field Development
Other Expenses
Senior Citizens Bus Transportation
Other Expenses
Senior Citizens Coordinator
Salaries and Wages
Other Expenses
$
30,000.00
$
30,000.00
$
26,837.64
$
$
3,162.36
$
500.00
500.00
500.00
4,000.00
41,285.00
41,178.45
106.55
41,583.00
47,883.00
47,625.97
257.03
6,000.00
6,000.00
3,259.18
495.98
2,244.84
OTHER COMMON OPERATING FUNCTIONS -
UNCLASSIFIED:
"""'
()l
Accumulated Sick Leave Compensation
Salaries and Wages
Housing and Community Advisory Board
Salaries and Wages
Other Expenses
Environmental Advisory Council
Other Expenses
Maintenance of Tax Map
Other Expenses
Beautification Committee
Other Expenses
Multi-Family Solid Waste Collection
Other Expenses
40,000.00
35,63107
35,631.07
375.00
375.00
375.00
100.00
100.00
100.00
1,150.00
1,150.00
1,150.00
1,000.00
1,000.00
1,000.00
1,295.00
1,295.00
163.67
1,131.33
55,000.00
55,000.00
9,437.74
45,562.26
ExhibitA-3
Page 5 of9
UNEXPENDED
BALANCE
CANCELLED


UTILITY EXPENSES AND BULK PURCHASES:
Electricity
Street Lighting
Telephone (Excluding Equipment Acquis.)
Water
Gas (Natural or Propane)
Fuel Oil (Diesel Fuel)
Gasoline
Sewer Processing and Disposal
Salaries and Wages
Other Expenses
LANDFILL/SOLID WASTE DISPOSAL COSTS:
Landfill Fees
Other Expenses
CODE ENFORCEMENT AND ADMINISTRATION:
Construction Inspector, Plumbing Inspector
and Code Enforcer
Salaries and Wages
Other Expenses
Total Operations Within "CAPS"
Contingent
Total Operations Including Contingent Within "CAPS"
DETAIL:
Salaries and Wages
Other Expenses (Including Contingent)
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2015
EXPENDED
2015 BUDGET
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
ENCUMBERED
RESERVED
$
170,500.00
$
170,500.00
$
156,561.75 $
$
13,938.25
$
171,000.00
171,000.00
147,016.74
23,983.26
60,000.00
65,000.00
61,184.83
3,815.17
30,000.00
30,000.00
25,212.28
4,787.72
30,000.00
25,000.00
23,863.03
1,136.97
75,000.00
75,000.00
66,105.05
8,894.95
85,000.00
85,000.00
84,937.69
62.31
38,955.00
38,955.00
27,389.95
11,565.05
46,550.00
46,550.00
32,559.21
756.82
13,233.97
365,000.00
365,000.00
272,335.17
9,302.28
83,362.55
163,328.00
163,328.00
148,106.30
15,221.70
9250.00
10250.00
8696.81
1540.02
13.17
10,920,658.00
10,920,658.00
9,824,073.35
150,164.64
946,420.01
28000.00
28000.00
24627.57
1 713.38
1659.05
10948658.00
10 948 658.00
9848700.92
151 878.02
948079.06
5,777,379.00
5,664,668.06
5,193,352.80
25.00
471,290.26
5171279.00
5283989.94
4655348.12
151 853.02
476788.80
ExhibitA-3
Page 6 of9
UNEXPENDED
BALANCE
CANCELLED


DEFERRED CHARGES AND STATUTORYEXPENDITURES
MUNICIPAL WITHIN "CAPS"
STATUTORYEXPENDITURES:
Contribution to:
Social Security System (OAS.!,)
Public Employees' Retirement System of NJ
Police and Firemen's Retirement System ofNJ
Pension & Firemen's Widow (NJSA 43:12-228.1)
Defined Contribution Retirement Program (DCRP)
Total Deferred Charges and Statutory Expenditures
Municipal Within "CAPS"
t:::l
Total General Appropriations for Municipal
Purposes Within "CAPS"
OPERATIONS EXCLUDED FROM "CAPS"
Maintenance of Free Public Library (NJSA 40:54-8)
Other Expenses
Middlesex County Utilities Authority Sewerage Treatment
Contractual
Piscataway Sewerage Authority - Share of Costs
Middlesex County Improvement Authority -
County Curbside Collection Program
Other Expenses
Storrnwater Pollution Programs: NJDES/Storrnwater
Permit
Salaries & Wages
Other Expense
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2015
EXPENDED
2015 BUDGET
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
ENCUMBERED
RESERVED
$
270,000.00
$
270,000.00
$
246,617.56 $
$
23,382.44
$
283,016.00
283,016.00
283,016.00
624,804.00
624,804.00
624,804.00
5,000.00
5,000.00
5,000.00
10000.00
10000.00
5619.77
4380.23
1 192820.00
1 192820.00
1 165057.33
27762.67
12.141478.00
12141478.00
11 013 758.25
151 878.02
975841.73
467,044.26
467,044.26
467,044.26
1,204,100.00
1,204,100.00
1,204,085.92
14.08
315,000.00
315,000.00
212,530.80
102,469.20
110,000.00
110,000.00
105,470.97
4,529.03
286,664.00
286,664.00
286,664.00
6,000.00
6,000.00
5,005.00
995.00
ExhibitA-3
Page 7 of9
UNEXPENDED
BALANCE
CANCELLED


PUBLIC AND PRIVATE PROGRAMS
OFFSET BY REVENUES
Body Armor Replacement Grant - CY
Municipal Alliance on Alcohol & Drug Abuse
Older Americans Act - Information Assist
Total Operations Excluded from "CAPS"
DETAIL:
Salaries and Wages
Other Expenses
CAPITAL IMPROVEMENTS - EXCLUDED FROM "CAPS"
Down Payments on Improvements
Capital Improvement Fund
Total Capital Improvements Excl. from "CAPS"
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2015
EXPENDED
2015 BUDGET
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
ENCUMBERED
RESERVED
$
2,946.00
$
2,946.00
$
2,946.00 $
$
$
17,355.00
17,355.00
17,355.00
14381.00
14381.00
14381.00
2423490.26
2423490.26
2315482.95
108007.31
286,664.00
286,664.00
286,664.00
2136826.26
2136826.26
2028818.95
108007.31
65000.00
65000.00
65000.00
65000.00
65000.00
65 000.00
ExhibitA-3
Page 80f9
UNEXPENDED
BALANCE
CANCELLED




BOROUGH OF MIDDLESEX
ExhibitB
MIDDLESEX
COUNTY
NEW JERSEY
TRUST FUNDS
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
DECEMBER
31 2015 AND 2014
BALANCE
BALANCE
LIABILITIES,
RESERVES
BALANCE
BALANCE
ASSETS
REF.
DEC. 31,2015
DEC. 31,2014
AND FUND BALANCE
REF.
DEC. 31,2015
DEC. 31,2014
Assessment Trust Fund:
Assessment Trust Fund:
Cash and Investments - Treasurer
B-6
$
25,135.27
$
24,944.73
Due to General Capital Fund
B-6
$
7,164.08
$
7,164.08
Assessment Liens Receivable
B-3
1470.00
1470.00
Due to Current Fund
B-6
13,875.42
13,684.88
Fund Balance
B-1
5565.77
5565.77
Total Assessment Trust Fund
26,605.27
26,414.73
Total Assessment Trust Fund
26,605.27
26,414.73
Animal Control Fund:
Animal Control Fund:
Cash and Investments - Treasurer
B-6
30,981.73
23,505.33
Due to Current Fund
B-6
13,619.28
5,527.28
Due from State of New Jersey
B-6
5.40
Reserve for Animal Control Expenditures
B-6
17362.45
17983.45
Total Animal Control Fund
30981.73
23510.73
Total Animal Control Fund
30981.73
23510.73
Trust-Other Fund:
Trust-Other Fund:
Cash and Investments - Treasurer
B-6
1,193,126.14
454,441.93
Reserve for Unemployment
Insurance
B-6
212,263.75
214,182.62
Due from Current Fund
B-6
399,388.85
Reserve for Various Deposits
B-6
1 638,409.23
498,417.30
tv
Due from General Capital Fund
B-6
258 157.99
258 157.99
0
Total Trust-Other Fund
1850672.98
712599.92
Total Trust-Other Fund
1 850672.98
712599.92
Escrow Trust Fund:
Escrow Trust Fund:
Developers' Escrow - Water & Soil
B-6
19,612.00
19,462.00
Cash and Investments - Treasurer
B-6
188 142.20
341 559.90
Developers' Escrow Funds
B-6
168530.20
322097.90
Total Escrow Trust Fund
188 142.20
341 559.90
Total Escrow Trust Fund
188 142.20
341559.90
Payroll Fund:
Payroll Fund:
Cash and Investments - Treasurer
B-6
121618.86
183423.14
Payroll Deductions Payable
B-6
121 618.86
183423.14
Total Payroll Trust Fund
121618.86
183423.14
Total Payroll Trust Fund
121618.86
183423.14
Public Assistance Trust Fund:
Public Assistance Trust Fund:
Cash and Investments - Treasurer
B-6
9,837.49
9913.62
Reserve for Public Assistance
B-6
9837.49
9913.62
Total Public Assistance Trust Fund
9837.49
9913.62
Total Public Assistance Trust Fund
9837.49
9913.62
Community Devlopement
Block Grant Fund:
Community
Devlopement
Block Grant Fund:
Due from Midd. Cty CDBG
B-6
96108.11
91057.80
Reserve for Comm. Dev. Block Expends.
B-6
96 108.11
91057.80
Total Comm. Develop. Block Grant Fund
96108.11
91057.80
Total Comm. Develop. Block Grant Fund
96108.11
91057.80
$
2,323,966.64
$
1,388,479.84
$
2,323,966.64
$
1 388,479.84
Note: See Notes to Financial Statements


Exhibit - B-1
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
TRUST ASSESSMENT
FUND
STATEMENT OF FUND BALANCE
- REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER
31, 2015
Balance - December 31, 2014
B
$
5,565.77
Balance - December 31, 2015
B
$
5,565.77
Note: See Notes to Financial Statements
- 21-


Exhibit - C
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
GENERAL CAPITAL FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
DECEMBER 31, 2015 AND 2014
BALANCE
BALANCE
DECEMBER 31,
DECEMBER 31,
ASSETS
REF.
2015
2014
Cash and Investments - Treasurer
C-2
$
2,306,875.75
$
1,756,850.22
Grants - In - Aid, Loans and Other Receivable
C-4
1,262,159.67
1,849,555.57
Interfunds Receivable
C-7
7,164.08
7,164.08
Deferred Charges to Future Taxation:
Funded
C-5
15,465,824.84
12,824,784.44
Unfunded
C-6
197208.85
3,261,654.87
$
19,239,233.19
$
19700009.18
LIABILITIES,
RESERVES
AND FUND BALANCE
General Serial Bonds
C-9
10,318,000.00
8,115,000.00
Capital Leases Payable - M.C.LA.
C-I0
4,214,191.84
3,653,852.19
Loans Payable - N.J. Green Trust Fund - 1987
C-11
32,039.95
52,874.70
Loans Payable - N.J. Green Trust Fund - 1989
C-12
90,097.11
101,125.75
Loans Payable - N.J. Infrastructure
C-15
811,495.94
901,931.80
Bond Anticipation Notes
C-16
2,878,258.00
Reserve for Encumbrances
Payable
C-8
543,858.65
665,454.66
Interfunds Payable
C-7
281,932.99
281,932.99
Improvement Authorizations:
Funded
C-8
1,732,478.92
1,550,331.19
Unfunded
C-8
84,876.79
724,796.17
Reserve for:
Capital Improvement Fund
C-14
222,959.58
157,959.58
Grants and Loans Receivable
C-l3
224,908.55
548,336.45
Insurance Refund
C-l3
4,838.08
4,838.08
To Pay Debt Service
C-l3
64,317.08
63,317.62
Fund Balance
C-l
613 237.71
$
19,239,233.19
$
19700009.18
Bonds and Notes Authorized but not Issued
C-17
$
197208.85
$
383396.87
Note: See Notes to Financial Statements
- 22-


Exhibit - C-l
BOROUGH OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
GENERAL CAPITAL FUND
STATEMENT OF FUND BALANCE - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER
31, 2015
Increased by:
Improvement Authorizations
Canceled
Balance - December 31, 2015
C
$
613,237.71
$
613,237.71
C-8
Note: See Notes to Financial Statements
- 23-


Exhibit-
D
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
SWIMMING
POOL UTILITY FUND
COMPARATIVE
BALANCE
SHEET - REGULATORY
BASIS
DECEMBER
31, 2015 AND 2014
BALANCE
BALANCE
LIABILITIES,
RESERVES
BALANCE
BALANCE
ASSETS
REF.
DEC. 31, 2015
DEC. 31 2014
AND FUND BALANCE
REF.
DEC. 31 2015
DEC. 31 2014
Operating Fund:
Operating Fund:
Cash and Investments
- Treasurer
D-5
$
478,276.38
$
488,512.61
Appropriation
Reserves
D-4, D-11
$
14,764.51
$
130,632.07
Cash - Snack Bar Fund
D-5
3,015.62
3,078.86
Reserve for Encumbrances
D-4, D-11
8,439.36
2,185.38
Due from Swimming Pool Capital Fund
D-13
83599.90
83599.90
Accounts Payable
D-IO
26,796.09
32,971.01
Due to Current Fund
D-13
499.74
841.05
564891.90
575 191.37
Accrued Interest on Bonds
D-20
10620.98
3087.50
61,120.68
169,717.01
Fund Balance
D-l
503 771.22
405474.36
Total Operating Fund
564891.90
575 191.37
Total Operating Fund
564891.90
575191.37
Capital Fund:
Capital Fund:
Cash and Investments
- Treasurer
D-5
406,679.58
918,480.03
Swim Pool Bonds
D-21
1,235,000.00
Fixed Capital
D-8
666,291.56
666,291.56
Bond Anticipation
Notes
D-19
1,235,000.00
Fixed Capital Authorized
and Uncompleted
D-9
1650000.00
1650000.00
Improvement
Authorizations
tv
Funded
D-18
189,059.00
~
Total Capital Fund
2722971.14
3234771.59
Unfunded
D-18
93,670.00
1,074,531.03
Reserve for Encumbrances
Payable
D-18
280,001.58
Capital Improvment
Fund
D-14
7,730.10
7,730.10
Due to Swimming Pool Operating Fund
D-17
83,599.90
83,599.90
Reserve for:
Amortization
D-15
666,291.56
666,291.56
Deferred Amortization
D-16
165,000.00
165,000.00
Fund Balance
D-2
2619.00
2619.00
Total Capital Fund
2722971.14
3234771.59
$
3287863.04
$
3809962.96
$
3287863.04
$
3809962.96
There were Bonds and Notes Authorized
but not Issued at December 31, 2015 and 2014 in the amount of $250,000.00.
(Exhibit D-22)
Note:
See Notes to Financial Statements


Exhibit - D-l
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
SWIMMING
POOL UTILITY OPERATING FUND
COMPARATIVE
STATEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE
- REGULATORY BASIS
FOR THE YEARS ENDED DECEMBER
31, 2015 AND 2014
REVENUE AND OTHER INCOME
YEAR 2015
YEAR 2014
Fund Balance Utilized
D-l, D-3
$
66,224.00
$
59,690.00
Fees - Membership
D-3
254,580.07
235,520.01
Miscellaneous
D-3
114,214.80
91,772.87
Other Credits to Income:
Unexpend. Balance of Appropriation
Reserves
Lapsed and Reserve for Encumb. Canceled
D-ll
129,815.16
76,247.13
Total Revenues
564,834.03
463,230.01
EXPENDITURES
Budget and Emergency Appropiations:
Operating
D-4
$
394,324.00
$
389,390.00
Accrued Interest Adjustment
D-20
5989.17
3087.50
Total Expenditures
400313.17
392,477.50
Excess/(Deficit)
in Revenues
164,520.86
70,752.51
FUND BALANCE
Balance - January 1
D
405474.36
394411.85
569,995.22
465,164.36
Decreased by:
Utilized as Anticipated
Revenue
D- 1
66,224.00
59690.00
Balance - December 31
D
$
503.171.22
$
405474.36
Note:
See Notes to Financial Statements
- 25-


Balance - December 31,2014
Balance - December 31,2015
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
SWIMMING
POOL UTILITY CAPITAL FUND
STATEMENT OF CHANGE
IN FUND BALANCE
REGULATORY
BASIS
FOR THE YEAR ENDED DECEMBER
31, 2015
D
D
Note: See Notes to Financial Statements
- 26-
Exhibit - D-2
$
2,619.00
$
2,619.00


Exhibit - D-3
BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
SWIMMING
POOL UTILITY OPERATING FUND
STATEMENT OF REVENUES
- REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER
31, 2015
2015
EXCESS OR
REF.
BUDGET
REALIZED
(DEFICIT)
Fund Balance
D- 1
$
66,224.00
$
66,224.00
$
Fees - Membership
D-l, D-5
235,500.00
254,580.07
19,080.07
Miscellaneous
D- 1
92,600.00
114214.80
21,614.80
$
394,324.00
$
435,018.87
$
40694.87
REF.
D-4
D- 1
Analysis of Realized Revenues:
Analysis of Miscellaneous
Revenues:
Snack Bar
0-7,0-12
$
19,276.43
Miscellaneous
Revenues
0-7
94938.37
D- 1
$
114214.80
Note:
See Notes to Financial Statements
- 27-


BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
Exhibit - D-4
SWIMMING POOL UTILITY OPERATING FUND
STATEMENT OF EXPENDITURES
- REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2015
EXPENDED
UNEXPENDED
2015
BUDGET AFTER
PAID OR
BALANCE
BUDGET
MODIFICATION
CHARGED
ENCUMBERED
RESERVED
CANCELLED
Operating:
Salaries and Wages
$
195,964.00
$
175,964.00
$
164,772.60
$
$
11,191.40
$
Other Expenses
168,900.00
188,900.00
179,882.24
8,439.36
578.40
Debt Service:
Interest on Notes
13,860.00
13,860.00
13,860.00
Deferred Charges and Statutory Expenditures:
Statutory Expenditures:
N
Social Security System (O.A.S.I.)
13,600.00
13,600.00
12,605.29
994.71
00
State Unemployment
Insurance
2,000.00
2,000.00
2,000.00
Total Swimming Pool Utility Appropriations
$
394,324.00
$
394,324.00
$
371,120.13
$
8,439.36
$
14764.51
$
Ref.
D-3
D-l,D-5
D, D-l
D, D-l
Cash Disbursements
D- 5
$
357,260.13
Accrued Interest Payable
D-20
13,860.00
$
371:120.13
Note:
See Notes to Financial Statements


BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
NOTES TO FINANCIAL STATEMENTS - REGULATORY
BASIS
YEARS ENDED DECEMBER 31, 2015 AND 2014
Note 1:
FORM OF GOVERNMENT
The Borough of Middlesex operates under the legislative Borough of N.J.S.A. 40A:60-1 et seq., which
provides for the election of a mayor to serve a term of four years and a council of six members serving
three-year terms. At its annual meeting, the council elects a president of the council who shall preside
at all its meetings when the mayor is not present. The mayor is the head of the municipal government
and the council
is the legislative
body. The Borough
has adopted
an administrative
code, which
provides
for the delegation
of a portion
of executive
responsibilities
to an administrator
and the
organization of the council into standing committees to oversee various Borough activities.
Note 2:
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
A.
Reporting Entity
Except as noted below, the financial statements of the Borough of Middlesex
include every board,
body, officer or commission
supported and maintained wholly or in part by funds appropriated by the
Borough of Middlesex,
as required by N.J.S.A. 40A:5-5.
Accordingly, the financial statements of the
Borough of Middlesex do not include the operations of the municipal library.
B.
Description of Funds
The accounting policies of the Borough of Middlesex conform to the accounting principles applicable
to municipalities
that have been prescribed by the Division of Local Government Services, Department
of Community Affairs, State of New Jersey.
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 of Middlesex accounts for its financial transactions through the following separate funds:
Current Fund - resources and expenditures
for governmental
operations of a general nature, including
Federal and State grant funds, except as otherwise noted.
Trust Fund - receipts, custodianship
and disbursement
of funds in accordance
with the purposes for
which each reserve
was created.
Pursuant
to the provisions
of N.J.S.A.
40A:4-39,
the financial
transactions of the following funds and accounts are also reported within the Trust Fund:
Trust Assessment Fund
Animal Control Trust Fund
Unemployment
Compensation Insurance Trust Fund
Dedicated Law Enforcement Trust Fund
Developer's Escrow Fund
Uniform Fire Safety Act - Penalty Monies (N.J.S.A. 52:27D-192 et seq.)
Disposal of Forfeited Property (P.L. 1985, Ch. 135)
Payroll Fund
Community Development Block Grant Fund
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.
Swimming Pool Operating
and Capital Funds - account for the operations and acquisition
of capital
. facilities of the municipally-owned
Swimming Pool.
- 29-


NOTES TO FINANCIAL
STATEMENTS
Note 2:
SUMMARY OF SIGNIFICANT
ACCOUNTING
POLICIES (CONT'D):
B.
Description of Funds (Cont'd.)
Governmental
Fixed Assets - the Governmental
Fixed Asset System is used to account for fixed assets
used in governmental
fund type operations
for control
purposes.
All fixed assets
are valued
at
historical
cost or estimated
historical
cost if actual
historical
cost is not available
or any other
reasonable
basis, provided
such basis is adequately
disclosed
in the financial
statements.
Donated
fixed assets are valued at their estimated fair value on the date of donation.
No depreciation
is recorded
on general fixed assets.
The Governmental
Accounting
Standards
Board (GASH) is the accepted
standards-setting
body for
establishing
governmental
accounting
and financial
reporting
principles.
GASB's
Codification
of
Governmental
Accounting
and Financial Reporting
Standards and subsequent
GASB pronouncements
are
recognized
as
U.S.
generally
accepted
accounting
principles
(GAAP)
for
state
and
local
governments.
GAAP provides
for the issuance
of entity-wide
financial
statements
along with the
presentation
of separate fund financial statements that differ from the organization
of funds prescribed
under the regulatory
basis
of accounting
utilized
by the Borough.
The resultant
presentation
of
financial position and results of operations in the form of financial statements is not intended to present
the basic financial statement presentation required by GAAP.
C.
Basis of Accounting
Basis of Accounting
and Measurement
Focus - The basis of accounting as prescribed by the Division of
Local Government
Services
for its operating
funds is generally
a modified
cash basis for revenue
recognition
and a modified
accrual
basis for expenditures.
The operating
funds utilize a "current
financial
resources"
measurement
focus.
The accounting
principles
and practices
prescribed
for
municipalities
by the Division differ in certain respects from generally accepted accounting
principles
(GAAP)
applicable
to local government
units. The most significant
is the reporting
of entity-wide
financial statements,
which are not presented
in the accounting
principles
prescribed
by the Division.
The other more significant differences are as follows:
Revenues
- Revenues
are recorded as received in cash except for statutory reimbursements
and grant
funds which are due from other governmental
units. State and Federal grants, entitlements
and shared
revenues received for operating
purposes
are realized as revenues when anticipated
in the Borough's
budget.
Receivables
for property
taxes and water and sewer consumer
charges
are recorded
with
offsetting
reserves
within the Current Fund.
Other amounts that are due to the Borough which are
susceptible
to accrual
are recorded
as receivables
with
offsetting
reserves.
These
reserves
are
liquidated and revenues are recorded as realized upon receipt of cash.
GAAP requires the recognition
of revenues
for general
operations
in the accounting
period
in which
they become
available
and
measurable.
Expenditures
- For purposes of financial reporting,
expenditures
are recorded as "paid or charged" or
"appropriation
reserves".
Paid or charged
refers to the Borough's
"budgetary"
basis of accounting.
Generally,
these
expenditures
are recorded
when an amount
is encumbered
for goods or services
through
the issuance
of a purchase
order in conjunction
with the encumbrance
accounting
system.
Reserves
for unliquidated
encumbrances
at the close of the year are reported
as a cash liability.
Encumbrances
do
not
constitute
expenditures
under
GAAP.
Appropriation
reserves
refers
to
unexpended
appropriation
balances at the close of the year.
Appropriation
reserves are automatically
created and recorded as a cash liability, except for amounts, which may be cancelled by the governing
body.
Appropriation
reserves
are available
until lapsed at the close of the succeeding
year, to meet
specific
claims,
commitments
or contracts
incurred
and not recorded
in the preceding
fiscal year.
Lapsed appropriation
reserves
are recorded
as income.
Generally,
unexpended
balances
of budget
appropriations
are not recorded as expenditures
under GAAP.
- 30-


NOTES TO FINANCIAL
STATEMENTS
Note 2: SUMMARY
OF SIGNIFICANT
ACCOUNTING
POLICIES (CONT'D.)
C.
Basis of Accounting (Cont'd.)
Expenditures
(Cont'd.)
For the purpose of calculating the results of Current Fund operations, 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
of
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
Current
Fund
balance
sheet.
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.
Compensated
Absences
- The Borough
has adopted
written
policies
via employee
contracts
and
municipal ordinances which set forth the terms under which an employee may accumulated
earned, but
unused,
vacation
and sick leave,
establishes
the limits
on such accumulations
and specifies
the
conditions
under which the right to receive payment for such accumulations
vests with the employee.
The Borough records expenditures
for payments
of earned and unused vacation and sick leave in the
accounting
period in which the payments
are made.
GAAP requires that expenditures
be recorded in
the governmental
(Current)
fund in an amount
that would
normally
be liquidated
with available
financial resources.
Property
Acquired
for Taxes - Foreclosed
property
is recorded
in the Current
Fund at the assessed
valuation when such property was acquired and is fully reserved.
GAAP requires such property to be
recorded in the general fixed asset account group at the lower of cost or fair market value.
Sale of Municipal
Assets - Cash proceeds from the sale of Borough owned property are 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 - Interfund receivables
in the Current Fund are recorded with offsetting reserves, which are
created by charges to operations.
Income is recognized
in the accounting
period the receivables
are
liquidated.
GAAP does not require the establishment
of offsetting reserves.
Interfund receivables
in
the other funds are not offset by reserves.
Inventories
of Supplies - The cost of inventories
of supplies for all funds are recorded as expenditures
at the time individual
items are purchased.
The cost of inventories
are not included
on the various
balance
sheets.
Although
the expenditure
method
of accounting
for purchases
of supplies
is in
accordance with GAAP, the cost of inventory on hand at the close of the year should be reported on the
balance sheet with an offsetting reserve for conformity
with GAAP.
- 31-


NOTES TO FINANCIAL
STATEMENTS
Note 2: SUMMARY OF SIGNIFICANT
ACCOUNTING
POLICIES (CONT'D.)
C.
Basis of Accounting (Cont'd.)
Fixed Assets - Property
and equipment
purchased
by the Current and the General Capital Funds are
recorded
as expenditures
at the time of purchase
and are not capitalized.
Contributions
in aid of
construction are not capitalized.
Governmental
Fixed Assets - New Jersey Administrative
Code 5:30-5.6 established
a mandate
for
fixed asset accounting by municipalities,
effective December 31, 1985, which differs in certain respects
from generally accepted accounting
principles,
requires the inclusion of a statement of Governmental
Fixed Assets of the Borough as part of the basic financial statements.
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.
No depreciation has been provided for in the financial statements.
Accounting
for utility fund "fixed capital"
remains unchanged
under the requirements
of regulation
5:30-5.6.
Property
and equipment
purchased
by the Swimming
Pool Utility Fund are recorded
in the capital
account as 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 balance in the Reserve
for Amortization
and Deferred
Reserve for Amortization
accounts
in the
utility capital fund represent charges to operations
for the cost of acquisitions
of property, equipment
and improvements.
The utility does not record depreciation
on fixed assets.
Grants Received
- Federal
and state grants, entitlements
or shared revenues
received
for purposes
normally financed through the Current Fund are recognized when anticipated in the Borough's
Budget.
GAAP requires such revenues to be recognized in the accounting period when they become susceptible
to accrual, reduced by an allowance for doubtful accounts.
Disclosures
About Pension Liabilities
The Borough has included information
relating to its allocated shares of the net pension liabilities of
the
state
sponsored,
cost-sharing,
multiple
employer
defined
benefit
pension
plans
in which
it
participates
in Note 7 and the accompanying
required supplementary
information. As the Borough does
not present entity-wide financial statements, it does not present on the face of its financial statements its
proportionate
share of the net pension liability of the defined benefit plans in which its employees are
enrolled. GAAP requires the recognition of the net pension liability and associated deferred inflows and
deferred outflows of financial resources in the entity-wide financial statements.
Disclosures
About Fair Value of Financial Instruments
- The following methods and assumptions
were
used to estimate the fair value of each class of financial
instruments
for which it is practicable
to
estimate that value:
Cash and cash equivalents
and short-term
investments
- The carrying amount approximates
fair value
because of the short maturity of those instruments.
Long-term debt - The Borough's
long-term debt is stated at face value.
The debt is not traded and it is
not practicable
to determine
its fair value without
incurring
excessive
cost.
Additional
information
pertinent to the Borough's
long-term debt is provided in Note 3 to the financial statements.
- 32-


NOTES TO FINANCIAL
STATEMENTS
Note 2: SUMMARY
OF SIGNIFICANT
ACCOUNTING
POLICIES (CONT'D.)
C.
Basis of Accounting
(Cont'd.)
Recent Accounting
Standards
GASB issued Statement
No. 72, "Fair Value Measurement
and Application"
in February
2015. This
Statement addresses accounting
and financial reporting issues related to fair value measurements.
The
definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction
between market participants
at the measurement
date. This Statement provides
guidance
for determining
a fair value measurement
for financial
reporting
purposes.
This Statement
also provides guidance for applying fair value to certain investments
and disclosures
related to all fair
value measurements.
The requirements
of this Statement
are effective
for financial
statements
for
periods beginning after June 15,2015.
GASB issued Statement No. 73, "Accounting
and Financial Reporting for Pensions and Related Assets
That Are Not within the Scope of GASB Statement
68, and Amendments
to Certain Provisions
of
GASB
Statements
67 and 68" in June 2015. The objective
of this Statement
is to improve
the
usefulness
of information
about pensions included in the general purpose external financial reports of
state and local governments
for making decisions and assessing accountability.
This Statement results
from a comprehensive
review of the effectiveness
of existing standards
of accounting
and financial
reporting
for all postemployment
benefits
with
regard
to providing
decision-useful
information,
supporting assessments
of accountability
and interperiod equity, and creating additional transparency.
GASB issued Statement No. 74, "Financial
Reporting
for Postemployment
Benefit Plans Other Than
Pension
Plans"
in June
2015.
The objective
of this
Statement
is to improve
the usefulness
of
information
about postemployment
benefits
other than pensions
(other postemployment
benefits
or
OPEB) included in the general purpose external financial reports of state and local governmental
OPEB
plans for making decisions and assessing accountability.
This Statement results from a comprehensive
review
of the
effectiveness
of existing
standards
of accounting
and
financial
reporting
for all
postemployment
benefits (pensions and OPEB) with regard to providing
decision-useful
information,
supporting
assessments
of accountability
and interperiod
equity, and creating additional transparency.
This Statement is effective for financial statements for fiscal years beginning after June 15, 2016.
GASB issued Statement
No. 75, "Accounting
and Financial
Reporting
for Postemployment
Benefits
Other Than Pensions"
in June 2015. The primary objective of this Statement is to improve accounting
and financial reporting by state and local governments
for postemployment
benefits other than pensions
(other postemployment
benefits or OPEB). It also improves
information
provided
by state and local
governmental
employers
about financial
support
for OPEB that is provided
by other entities.
This
Statement results from a comprehensive
review of the effectiveness
of existing standards of accounting
and financial reporting for all postemployment
benefits (pensions and OPEB) with regard to providing
decision-useful
information,
supporting
assessments
of accountability
and interperiod
equity,
and
creating additional
transparency.
This Statement
is effective for fiscal years beginning
after June 15,
2017.
GASB issued Statement No. 76, "The Hierarchy of Generally Accepted Accounting
Principles for State
and Local Governments"
in June 2015. The objective of this Statement is to identify-in
the context of
the
current
governmental
financial
reporting
environment-the
hierarchy
of
generally
accepted
accounting principles (GAAP). The "GAAP hierarchy"
consists of the sources of accounting principles
used to prepare financial statements of state and local governmental
entities in conformity
with GAAP
and the framework
for selecting those principles .. The requirements
of this Statement are effective for
financial statements for periods beginning after June 15,2015.
- 33-


NOTES TO FINANCIAL
STATEMENTS
Note 2: SUMMARY OF SIGNIFICANT
ACCOUNTING
POLICIES (CONT'D.)
C.
Basis of Accounting
(Cont'd.)
GASB issued Statement No. 77, "Tax Abatement
Disclosures"
in August 2015. Financial statements
prepared by state and local governments
in conformity
with generally accepted accounting
principles
provide citizens and taxpayers,
legislative
and oversight
bodies, municipal
bond analysts, and others
with information they need to evaluate the financial health of governments,
make decisions, and assess
accountability.
This information
is intended,
among
other things,
to assist these users of financial
statements
in assessing
(1) whether a government's
current-year
revenues
were sufficient to pay for
current-year
services (known as interperiod equity), (2) whether a government
complied with finance-
related legal and contractual
obligations,
(3) where a government's
financial resources come from and
how it uses them, and (4) a government's
financial position and economic condition and how they have
changed over time.
GASB
issued
Statement
No.
78, "Pensions
Provided
through
Certain
Multiple-Employer
Defined
Benefit Pension Plans" in December 2015. The objective of this Statement is to address a practice issue
regarding
the scope and applicability
of Statement
No. 68, Accounting
and Financial
Reporting
for
Pensions.
This issue is associated
with pensions
provided through certain multiple-employer
defined
benefit pension plans and to state or local governmental
employers whose employees are provided with
such pensions.
GASB
issued
Statement
No.
79, "Certain
External
Investment
Pools
and
Pool
Participants"
in
December
2015. This
Statement
addresses
accounting
and financial
reporting
for certain
external
investment
pools and pool participants.
Specifically,
it establishes
criteria for an external investment
pool to qualify for making the election to measure all of its investments
at amortized cost for financial
reporting
purposes.
An external
investment
pool qualifies
for that reporting
if it meets all of the
applicable
criteria established
in this Statement.
The specific
criteria ad- dress (1) how the external
investment
pool
transacts
with
participants;
(2)
requirements
for
portfolio
maturity,
quality,
diversification,
and liquidity;
and (3) calculation
and requirements
of a shadow
price.
Significant
noncompliance
prevents
the
external
investment
pool
from
measuring
all of its investments
at
amortized
cost for financial
reporting
purposes.
Professional
judgment
is required
to determine
if
instances of noncompliance
with the criteria established
by this Statement during the reporting period,
individually or in the aggregate, were significant.
The
Borough
does
not
prepare
its financial
statements
in accordance
with
generally
accepted
accounting
principles.
The adoption of these new standards will not adversely effect the reporting on
the Borough's
financial condition.
Comparative
Data - Comparative
data for the prior year has been presented
in order to provide
an
understanding
of changes on the Borough's
financial position and operations.
However, comparative
data has not been presented
in each of the statements
since their inclusion would make the statements
unduly complex and difficult to read.
Certain reclassifications
have been made to the fiscal year 2014
financial statements to conform with classifications
used in fiscal year 2015.
- 34-


Note 3:
A.
NOTES TO FINANCIAL
STATEMENTS
DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION
The Local Bond Law, Chapter 40A:2 et seq, governs the issuance of bonds to finance
municipal capital expenditures.
The Borough's debt is summarized
as follows:
Summary of Municipal Debt for Capital Projects
Issued:
General:
Bonds and Notes
Bond Anticipation
Notes
Green Acres Loan
M.C.I.A. Capital Leases
NJ Environmental
Infrastructure
Loans
Swim Pool Utility
Bonds and Notes
Bond Anticipation
Notes
Net Issued
Authorized
But Not Issued:
General:
Bonds and Notes
Swim Pool Utility
Bonds and Notes
Total Authorized
But
Not Issued
Net Bonds and Notes Issued and
Authorized
but not Issued
- 35-
2015
2014
$
10,318,000.00
$
8,115,000.00
2,878,258.00
122,137.06
154,000.45
4,214,191.84
3,653,852.19
811,495.94
901,931.80
1,235,000.00
1,235,000.00
16,700,824.84
16,938,042.44
197,208.85
383,396.87
250,000.00
250,000.00
447,208.85
633396.87
$
17,148,033.69
$
17,571,439.31


NOTES TO FINANCIAL STATEMENTS
Note 3:
DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION
(CONT'D.)
A.
Summary of Municipal Debt for Capital Projects (Cont'QJ
Summarized below are the Borough's individual bond and loan issues which were outstanding
at December 31,2015
and 2014:
General Debt:
$9,865,000, General Improvement Bonds
of2010,
due in annual installments
of $400,000 to $800,000 through Feb. 1,2025,
interest at 3.00% to 4.00%.
$
7,440,000.00
$2,878,000, General Improvement Bonds
of2015,
due in annual installments
of$252,000
to $326,500 through July 15,2025,
interest at 1.00% to 2.50%.
2,878,000.00
Bond Anticipation Notes - Mature 07/17115 @ l.00%
Subtotal - Serial Bond Debt and BAN's for Capital Projects
Outstanding December 31
10,318,000.00
Loans Outstanding:
Green Acres Loans
122,137.06
NJ Environmental
Infrastructure
Loans
811,495.94
MCIA Capital Equipment Loan - 2008
193,598.47
MCIA Capital Equipment Loan - 2013
2,180,272.56
MCIA Capital Equipment Lease - 2014
97,69l.86
MCIA Capital Equipment Loan - 2014
596,565.06
MCIA Capital Equipment Lease - 2015
1,146,063.89
Subtotal - Loans Outstanding
5,147,824.84
Subtotal General Debt
15,465,824.84
Swimming Pool Utility Debt:
$1,235,000, General Improvement
Bonds
of2015,
due in annual installments
of$108,000
to $141,500 through July 15,2025,
interest at 1.00% to 2.50%.
1,235,000.00
Bond Anticipation Notes - Mature 09/29115 @ 1.00%
Total Outstanding Debt
$
16,700,824.84
- 36-
$
8,115,000.00
2,878,258.00
10,993,258.00
154,000.45
901,93l.80
253,689.11
2,540,307.16
120,994.00
738,86l.92
4,709,784.44
15,703,042.44
1,235,000.00
$
16,938,042.44


NOTES TO FINANCIAL STATEMENTS
Note 3: DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION (CONT'D.)
B.
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:
Gross Debt
Deductions
Net Debt
Local School District Debt
Swimming Pool Utility Debt
General Debt
$3,235,000.00
1,485,000.00
15,663,033.69
$3,235,000.00
1,485,000.00
64,317.08
$15,598,716.61
$20,383,033.69
$4,784,317.08
$15,598,716.61
Net Debt $15,598,716.61
Divided by Equalized Valuation Basis per N.J.S.A. 40A:2-2 as
amended
$1,402,699,679.33
=
1.11%
Gross Debt
Deductions
Net Debt
Local School District Debt
Swimming Pool Utility Debt
General Debt
$3,875,000.00
1,485,000.00
16,086,439.31
$3,875,000.00
1,485,000.00
12588.76
$16,073,850.55
$21,446,439.31
$5,372,588.76
$16,073,850.55
Net Debt $16,073,850.55
Divided by Equalized Valuation Basis per N.J.S.A. 40A:2-2 as
amended
$1,416,317,744.33
=
1.13%
The Borough's Borrowing Power Under N.J.S.A. 40A:2-6 as Amended, at December 31,was as follows:
3 112%of Equalized Valuation Basis Municipal
Net Debt
$49,094,488.78
15,598,716.61
$49,571,121.05
16073 850.55
Remaining Borrowing Power
$33495,772.17
$33 497,270.50
- 37-


NOTES TO FINANCIAL
STATEMENTS
Note 3: DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION
(CONT'D.)
B.
Summary
of Statutory Debt Condition
- Annual Debt Statement
Calculation
of "Self-Liquidating
Purpose"
Swimming
Pool Utility Per N.J.S.A. 40A: 2-45
2015
2014
Cash Receipts From Fees, Rents or
Other Charges for the year
$
564,834.03
$
463,230.01
Deductions:
Operating
and Maintenance
Costs
394324.00
389390.00
Excess in Revenue
$
170,510.03
$
73,840.01
C.
Schedule of General Capital Annual Debt Service for Principal and Interest for the
Bonded Debt Issued and Outstanding
at December
31 , 2015
Calendar
General
Year
Principal
Interest
Total
2016
$
927,000.00
$
292,502.72
$
1,219,502.72
2017
959,000.00
269,508.75
1,228,508.75
2018
966,000.00
245,918.75
1,211,918.75
2019
973,000.00
220,928.75
1,193,928.75
2020
983,500.00
193,768.75
1,177,268.75
2021
1,065,500.00
163,820.63
1,229,320.63
2022
1,101,000.00
130,932.50
1,231,932.50
2023
1,108,000.00
96,912.50
1,204,912.50
2024
1,118,500.00
62,252.50
1,180,752.50
2025
1,116,500.00
23856.45
1,140,356.45
Total
$ 10,318,000.00
$
1,700,402.30
$
12,018,402.30
C.
Schedule of Swim Pool Utility Annual Debt Service for Principal and Interest for the
Bonded Debt Issued and Outstanding
at December
31, 2015
Calendar
Swim Pool
Year
Principal
Interest
Total
2016
$
108,000.00
$
23,237.77
$
131,237.77
2017
111,000.00
22,222.50
133,222.50
2018
114,000.00
21,112.50
135,112.50
2019
117,000.00
19,402.50
136,402.50
2020
121,500.00
17,062.50
138,562.50
2021
124,500.00
14,632.50
139,132.50
2022
129,000.00
12,142.50
141,142.50
2023
132,000.00
9,562.50
141,562.50
2024
136,500.00
6,922.50
143,422.50
2025
141,500.00
3643.55
145 143.55
Total
$
1,235,000.00
$
149941.32
$
1,384,941.32
- 38-


NOTES TO FINANCIAL
STATEMENTS
Note 3: DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION
(CONT'D.)
D.
Loan Agreements
Department
of Environmental
Protection
- Green Acres Program Loans
New Jersey 1987 Green Trust Fund
The Borough has contracted
for funding of Acquisition
of Property for Outdoor Recreation
and Conservation
purposes.
The Borough has been awarded a loan amount of$328,000.
Pursuant to the provisions
ofNJ.S.A.
40A: 2-1 et seq. the loan principal in the amount of $32,039.95
and $52,874.70
at December
31, 2015 and
2014 has been included in the calculation
of the Borough's
statutory debt condition.
New Jersey 1989 Green Trust Fund
The Borough has contracted
with Department
of Environmental
Protection
to fund costs related to Mountainview
Phase II Project.
The Borough has been awarded a loan amount of $209,000.
Pursuant to the provisions
of
N.J.S.A. 40A: 2-1 et seq. the loan principal in the amount of$90,097.11
and $101,125.75
at December
31, 2015
and 2014 has been included in the calculation
of the Borough's
statutory debt condition.
Terms of the above loans are included in their respective
supplemental
schedules.
New Jersey Environmental
Infrastructure
Trust and Fund Loans
The Borough has contracted
with the New Jersey Environmental
Infrastructure
Trust to fund costs related to
sewer system.
Information
on these loans and as included in their respective
supplemental
schedule, is
as follows:
Infrastructure
Trust Loan:
Dated Date
Draw Down Date - Expected
Loan Amount
Principal
Due Dates
Interest Rates
Interest Due Dates
Number
of Payments
Final Payment
Oct. 15,2004
Nov. 4, 2004
$895,000
Sept. 1
2.110% - 5.160%
Mar. 1 & Sept. 1
19
Sept. 1, 2024
Infrastructure
Fund Loan (Principal
Only):
Dated Date
Draw Down Date - Expected
Loan Amount
Principal
Due Dates
Non-Interest
Loan
Number
of Payments
Final Payment
Oct. 15, 2004
Nov. 4, 2004
$844,827.50
Feb 1 & Aug. 1
38
Aug. 1,2024
Capital Equipment
and Improvement
Revenue Bonds, Series 2008
The Borough entered into a capital equipment
loan agreement
with the Middlesex
County Improvement
Authority
- Capital Equipment
and Improvement
Revenue Bonds, Series 2008 in the amount of$572,745.83
for the acquisition
of 10 year capital equipment.
The loan obligation
is due in ten annual installments
commencing
with a principal
payment of $48,577.05
for 2009 and remaining
principal payments
spread over
a nine year period with amounts ranging from $50,330.01
through $66,833.58
and bearing interests rates
ranging between
3.500% for calendar year 2009 and 4.200% for calendar year 2018.
- 39-


NOTES TO FINANCIAL
STATEMENTS
Note 3: DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION
(CONT'D.)
D.
Loan Agreements
(Cont'd.)
Capital Equipment
and Improvement
Revenue Bonds, Series 2013
The Borough entered into a capital equipment
loan agreement
with the Middlesex
County Improvement
Authority
- Capital Equipment
and Improvement
Revenue Bonds, Series 2013 in the amount of$2,900,567.38
for the acquisition
of 10 year capital equipment.
The loan obligation
is due in ten annual installments
commencing
with a principal payment of $360,260.22
for 2014 and remaining
principal payments spread over
a nine year period with amounts ranging from $360,034.60
through $220,000.00
and bearing interests rates
ranging between 2.000% for calendar year 2014 and 4.000% for calendar year 2023.
Capital Equipment
and Improvement
Revenue Bonds, Series 2014
The Borough entered into a capital equipment
loan agreement
with the Middlesex
County Improvement
Authority
- Capital Equipment
and Improvement
Revenue Bonds, Series 2014 in the amount of$738,861.92
for the acquisition
of 5 year capital equipment.
The loan obligation
is due in five annual installments
commencing
with a principal payment of$142,296.86
for 2015 and remaining
principal payments
spread over
a four year period with amounts ranging from $143,656.53
through $155,453.32
and bearing interests rates
ranging between
1.500% for calendar year 2015 and 3.000% for calendar year 2019.
Capital Equipment
and Improvement
Revenue Bonds, Series 2014
The Borough entered into a capital equipment
lease agreement
with the Middlesex
County Improvement
Authority
- Capital Equipment
and Improvement
Revenue Bonds, Series 2014 in the amount of$120,994.00
for the acquisition
of 5 year capital equipment.
The loan obligation
is due in five annual installments
commencing
with a principal payment of $23,302.14
for 2015 and remaining
principal payments
spread over
a four year period with amounts ranging from $23,524.80
through $25,456.61
and bearing interests rates
ranging between
1.500% for calendar year 2015 and 3.000% for calendar year 2019.
Capital Equipment
and Improvement
Revenue Bonds, Series 2015
The Borough entered into a capital equipment
lease agreement
with the Middlesex
County Improvement
Authority
- Capital Equipment
and Improvement
Revenue Bonds, Series 2015 in the amount of$I,146,063.89
for the acquisition
of 5 year capital equipment.
The loan obligation
is due in five annual installments
commencing
with a principal payment of$219,193.63
for 2016 and remaining
principal payments
spread over
a four year period with amounts ranging from $220,986.67
through $243,822.55
and bearing interests rates
ranging between
1.500% for calendar year 2016 and 4.000% for calendar year 2020.
The NJ Economic
Development,
Environmental
Infrastructure
Loans and the MCIA Loans above have been
included in the calculation
of the Borough's
statutory debt condition.
- 40-


NOTES TO FINANCIAL
STATEMENTS
Note 4:
FUND BALANCES
APPROPRIATED
Fund balances at December 31, 2015 and 2014 were appropriated and included as anticipated revenue
in their own respective funds for the year ending December 31,2015
and 2014 as follows:
Fund Balance
December 31,2015
Utilized in
Succeeding Budget
Current Fund
Swimming Pool Utility Fund
$2,793,961.86
503,771.22
$1,626,393.06
153,744.10
Fund Balance
December 31,2014
Utilized in
Succeeding Budget
Current Fund
Swimming Pool Utility Fund
$1,701,515.87
405,474.36
$1,019,770.00
66,224.00
Note 5:
DEPOSITS AND INVESTMENTS
The Borough
considers
change
funds, cash in banks
and certificates
of deposit
as cash and cash
equivalents.
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 insures deposits or the State of New Jersey Cash Management
Fund.
New Jersey statutes
require public depositories
to maintain
collateral
for deposit
of public funds that exceed insurance
limits to protect deposits from loss under the provisions
of the Governmental
Unit Deposit Protection
Act ("GUDPA").
GUDPA was enacted in 1970 to protect Governmental
Units from a loss of funds on
deposit with a failed banking institution in New Jersey.
N.J.S.A. 17:9-41 et. seq. establishes the requirements
for the security of deposits of governmental
units.
The statute requires that no governmental
unit shall deposit public funds in a public depository unless
such funds are secured
in accordance
with the Act.
Public depositories
include
Savings and Loan
institutions, banks (both state and national banks) and savings banks the deposits of which are federally
insured.
All public depositories
must pledge collateral, having a market value at least equal to five (5)
percent of the average daily balance of collected public funds; or if the public funds deposited exceed
75 percent of the capital funds of the depository, the depository must provide collateral having a market
value equal to 100 percent of the amount exceeding 75 percent, to secure the deposits of governmental
units.
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
that $25,000,000.
If a public depository fails, the collateral it has pledged, plus the collateral of all other
public depositories,
is available to pay the full amount of their deposits to the Governmental
Units.
At December
31, 2015 and 2014, the book value of the Borough's
deposits were $11,006,323.31
and
$7,450,415.85
and the bank balances of the Borough's
cash and deposits amounted to $11,374,487.89
and $7,830,310.69,
respectively.
Of the bank
balance,
during
2015
and
2014,
$271,447.38
and
$273,110.12 was FDIC insured and $11,103,040.51
and $7,557,200.57
were GUDPA insured.
- 41-


NOTES TO FINANCIAL
STATEMENTS
Note 5:
DEPOSITS AND INVESTMENTS
(CONT'D.)
Deposits (Cont'd.)
At December
31, 2015, the Borough has implemented
the disclosure
requirements
of Governmental
Accounting
Standards
Board Statement
No. 40 "Deposits
and Investment
Risk Disclosures"
(GASB
40) and accordingly the Borough has assessed the Custodial Risk, the Concentration
of Credit Risk and
Interest Rate Risk of its cash and investments.
(a) Custodial
Credit Risk - The Borough's
deposits are exposed to custodial
credit risk if
they are not covered
by depository
insurance
and the deposits
are: uncollateralized,
collateralized
with securities held by the pledging financial institution,
or collateralized
with securities held by the pledging financial institution's
trust department
or agent but
no in the depositor-governments
name.
The deposit risk is that, in the event of the failure
of a depository
financial institution, the Borough will not be able to recover deposits or
will not be able to recover collateral securities that are in possession
of an outside party.
The Borough's
investment
securities are exposed to custodial credit risk if the securities
are uninsured,
are not registered
in the name of the Borough and are held by either: the
counterparty
or the counterparty's
trust department
or agent but not in the Borough's
name.
The investment
risk is that, in the event of the failure of the counterparty
to a
transaction,
the Borough
will not be able to recover
the value of the investment
or
collateral securities that in possession of an outside party.
(b) Concentration
of Credit Risk - This is the risk associated with the amount of investments
that Borough
has with anyone
issuer
that exceeds
5 percent
or more
of its total
investments.
Investment
issued or explicitly
guaranteed
by the U.S. government
and
investments in mutual funds, external investment pools, and other pooled investments are
excluded from this requirement.
(c) Credit Risk - GASB 40 requires that disclosure be made as to the credit rating of all debt
security
investments
except
for obligations
of the U.S.
government
or obligations
explicitly
guaranteed
by the U.S. government.
This is the risk that an issuer or other
counterparty
to an investment
will not fulfill its obligations.
In general, the Borough
does not have an investment
policy regarding
Credit Risk except to the extent outlined
under the Borough's
investment policy.
The New Jersey Cash Management
Fund is not
rated.
(d) Interest Rate Risk - This is the risk that changes in interest rates will adversely affect the
fair value of an investment.
The Borough
does not have a formal policy that limits
investment
maturities
as a means of managing
its exposure to fair value losses arising
from interest rate fluctuations.
As of December
31, 2015, based upon the insured balances
provided
by the FDIC and NJGUDPA
coverage, no amounts of the Borough's
bank balances was considered
exposed to custodial credit risk.
In addition
based upon the existing
deposit and investment
practices,
the Borough
is generally
not
exposed to credit risks, concentration
of credit risks and interest rate risks for its investments
nor is it
exposed to foreign currency risks for its deposits and investments
Investments
New Jersey statutes permit the Borough to purchase the following types of securities:
1.
Bonds or other obligations of the United States of America or obligations guaranteed by the United
States;
- 42-


NOTES TO FINANCIAL
STATEMENTS
Note 5:
DEPOSITS
AND INVESTMENTS
(CONT'D.)
Investments
(Cont'd.)
2.
Government
money market mutual funds;
3.
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 such obligation bear a fixed rate of interest not dependent on any index or other
external factor;
4.
Bonds or other obligations
of the local unit or bonds or other obligations
of school districts of
which the local unit is a part or within which the school district is located;
5.
Bonds or other obligations,
having a maturity
date of not more than 397 days from the date of
purchase, approved by the Division of Investment in the Department of the Treasury for investment
by local units;
6.
Local government
investment pools;
7.
Deposits with the State of New Jersey Cash Management
Fund established pursuant to section 1 of
P.L. 1997, c. 281 (C.52:18A-90.4);
or
8.
Agreements
for the repurchase of fully collateralized
securities, if:
a. the underlying securities are permitted investments pursuant to paragraphs (1) and (3);
b. the custody of collateral is transferred to a third party;
c. the maturity of the agreement is not more than 30 days;
d. the underlying
securities are purchased
through a public depository
as defined in section 1 of
P.L. 1970, c. 236 (C.19:9-41)
and for which a master repurchase
agreement
providing
for the
custody and security of collateral is executed.
Investments
generally are shown by type, carrying amount, market value and level of risk assumed in
the holding
of the various
securities,
where
applicable.
At year-end,
the Borough
maintained
its
invested funds in various money market and sweep accounts included in the above categorization
of the
Borough's
deposits.
In addition
to the sweep
accounts,
the Borough
held cash management
fund
investments
in the
amount
of $239,810.80
and
$239,566.56
at December
31,
2015
and
2014,
respectively.
Change Fund
Demand Accounts
2015
2014
Amount
Amount
$500.00
$500.00
11,005,823.31
7,449,915.85
11,006,323.31
7,450,415.85
Cash & Cash Equivalents:
Total Cash & Cash Equivalents
Investments:
State ofNJ
Cash Mgmt. Fund
239,810.80
$11.246.134.11
239,566.56
$7.689.982.41
Total Cash, Cash Equivalents
& Investments
-43 -


NOTES TO FINANCIAL
STATEMENTS
Note 6:
ASSESSMENT
AND COLLECTION
OF PROPERTY TAXES
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 by January 10 of the
following year.
Upon the filing of certified adopted budgets by the Borough, Local 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 on or before
May 13th.
Tax bills are prepared and mailed by the Collector of Taxes 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 1sl and November
1st of the tax year.
In addition, the
property owner receives a preliminary
bilI 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 New Jersey
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% to 18% of the amount delinquent,
and if a delinquency
(including interest) is in
excess of $10,000.00 and remains in arrears after December 31, an additional flat penalty of 6% may be
charged against the delinquency.
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.
Note 7.
PENSION PLANS
Description
of Plans - The State of New Jersey, Division
of Pension and Benefits (the Division) was
created and exists pursuant to N.J.S.A.
52:18A to oversee and administer
the pension trust and other
postemployment
benefit plans sponsored by the State of New Jersey (the State).
According to the State
of New Jersey Administrative
Code, all obligations of the Systems will be assumed by the State of New
Jersey should the plans terminate. Each defined benefit pension plan's designated purpose is to provide
retirement,
death and disability benefits to its members.
The authority to amend the provision of plan
rests with new legislation
passed by the State of New Jersey.
Pension reforms enacted pursuant
to
Chapter 78, P.L. 2011 included
provisions
creating special Pension Plan Design Committees
for the
Public
Employees
Retirement
System
(PERS)
and the Police
and Firemen's
Retirement
System
(PFRS), once a Target Funded Ratio (TFR) is met, that will have the discretionary
authority to modify
certain
plan design
features,
including
member
contribution
rate; formula
for calculation
of final
compensation
or final salary; fraction used to calculate a retirement
allowance; age at which a member
may be eligible and the benefits for service or early retirement;
and benefits provided
for disability
retirement.
The committee
will also have the authority
to reactivate
the cost of living adjustment
(COLA) on pensions.
However, modifications
can only be made to the extent that the resulting impact
does not cause the funded ratio to drop below the TFR in anyone
year of a projection period.
The Division
issues a publicly
available
financial
report that includes
the financial
statements
and
required supplementary
information for each of the plans.
This report may be accessed via the Division
of Pensions and Benefits website, at www.state.nj.us/treasury/pensions.
or may be obtained by writing
to the Division of Pensions and Benefits, PO Box 295, Trenton, New Jersey, 08625.
A. Public Employees'
Retirement
System (PERS) - The Public Employee Retirement
System is a cost-
sharing, multiple employer
defined benefit pension plan as defined in GASB Statement No. 68.
The
Plan is administered
by The New Jersey Division
of Pensions
and Benefits
(Division).
The more
significant aspects of the PERS Plan are as follows:
- 44-


NOTES TO FINANCIAL
STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
A. Public Employees'
Retirement
System (PERS) (Cont'd.)
Plan Membership
and Contributing
Employers-
Substantially
all full-time employees
of the State of
New Jersey
or any county,
municipality,
school
district
or public
agency
are enrolled
in PERS,
provided the employee is not required to be a member of another state-administered
retirement system
or other
state pension
fund
or other jurisdiction's
pension
fund.
Membership
and contributing
employers of the defined benefit pension plans consisted of the following at June 30, 20 15:
Inactive plan members or beneficiaries
currently receiving benefits
Inactive plan members entitled to but not yet receiving benefits
Active plan members
166,637
703
259,161
426,501
Total
Contributing
Employers - 1,710.
Significant Legislation
- Chapter 19, P.L. 2009, effective March 17, 2009, provided an option for local
employers
of PERS
to contribute
50% of the normal
and accrued
liability
contribution
amounts
certified for payments due in State Fiscal Year 2009.
Such an employer 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 PERS, 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.
Pursuant to the provision of Chapter 78, P.L. 2011, COLA increases were suspended for all current and
future retirees of PERS.
Payrolls and Covered Wages:
For the year ended December
31, 2015 the Borough's
total payroll for all employees was $6,230,036.
Total PERS covered payroll was $2,407,049.
Covered payroll refers to all compensation
paid by the
Borough to active employees covered by the Plan.
Specific Contribution
Requirements
and benefit provisions
- The contribution
policy is set by N.J.S.A
43: 15 and requires contributions
by active members and contributing
employers.
Members contribute
at a uniform rate.
Pursuant to the provisions
of Chapter 78, P.L. 2011, the active member contribution
rate increased from 5.5% of annual compensation
to 6.5% plus an additional
1% phased-in over 7 years
beginning
in July 2012.
The member
contribution
rate was 6.92%
in State fiscal year 2015 and
increased to 7.06% for State fiscal year 2016, commencing
July 1,2015.
The phase-in of the additional
incremental
member
contribution
rate will take place in July of each subsequent
State fiscal year.
Employers
contribution
amounts
are based on an actuarially
determined
rate.
The annual employer
contributions
include funding for basic retirement allowances
and noncontributory
death benefits.
The
Borough's
cash basis contributions
to the Plan for the years ended December
31,2014
and 2015 were
$255,353 and $283,016,
respectively.
Borough Contributions
are due and payable on April 1sl in the
second fiscal period subsequent
to plan year for which the contribution
requirements
were calculated.
Borough
payments
to PERS
for the years ending
December
31, 2014 and 2015 consisted
of the
following:
- 45-


NOTES TO FINANCIAL
STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
A. Public Employees' Retirement
System (PERS) (Cont'd.)
2014
2015
Normal Cost
$ 43,321
$ 44,120
Amortization
of Accrued Liability
190,466
204,091
Total Pension
233,787
248,211
NCGI Premiums
3,976
16,811
Total Regular Billing
237,763
265,022
Additional Billings:
Ch. 19, P.L. 2009
17,590
17,994
Total PERS Payment
$ 255,353
$ 2831016
Ch. 19, P.L. 2009 billings reflect the recoupment
of the 50% deferral of normal and accrued liability
costs due on April 1, 2009. The law set a fifteen-year repayment schedule for the deferred amount, with
additional annual adjustments
to reflect the return on investment
of actuarial net assets of the plan on
deferred principal balances.
The Borough recognizes
liabilities to PERS and records expenditures
for same in the fiscal period that
bills become due.
The vesting and benefit provisions
are set by NJ.S.A.
43:15.
PERS provides
retirement,
death and
disability benefits.
All benefits vest after ten years of service, except for medical benefits, which vest
after 25 years of service or under the disability provisions of PERS.
The following represents the membership tiers for PERS:
Tier
Definition
1
Members who were enrolled prior to July 1, 2007.
2
Members who were eligible to enroll on or after July 1,2007 and prior to November 2,2008
3
Members who were eligible on or after November 2,2008
and prior to May 22, 2010
4
Members who were eligible to enroll on or after May 22, 2010 and prior to June 28,2011
5
Members who were eligible to enroll on or after June 28,2011
A service retirement
benefit of 1/551h of final average salary for each year of service credit is available
to tier 1 and 2 members upon reaching age 60 and to tier 3 members
upon reaching age 62.
Service
retirement benefits of 1/601h 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, to tier 3 and 4 members before age 62 and
tier 5 members with 30 or more years of service credit before age 65. Benefits are reduced by a fraction
of a percent for each month that a member retires prior to the retirement
age of his/her 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.
- 46-


NOTES TO FINANCIAL
STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
A. Public Employees' Retirement System (PERS) (Cont'd.)
Pension
Liabilities,
Pension
Expense,
Deferred
Outflows
of Resources,
and Deferred
Inflows
of
Resources Related to Pensions - The regulatory basis of accounting which is basis for the preparation
of the Borough's
basic financial statements does not require or permit the inclusion of entity-wide, full
accrual basis financial statements.
Accordingly,
the Borough does not recognize pension liabilities for
any current or prior period until the fiscal period in which such payments will become due and payable.
At June 30, 2015, the PERS reported a net pension liability of $22,447,996,119
for its Local (Non-
State) Employer Member Group.
The Borough's
proportionate
share of the net pension liability for the
Local Employer
Member Group that is attributable
to the Borough was $7,464,929
or 0.033254%.
At
June 30, 2014, the PERS reported
a net pension liability of $18,722,735,003
for its Local Employer
Member Group.
The Borough's
proportionate
share of the net pension liability for the Local Employer
Member Group that was attributable to the Borough was $6,018,951 or 0.032148%.
Actuarial
Assumptions-
The total
pension
liability
in the June
30, 2015
measurement
date was
determined
by an actuarial valuation as of July 1,2014
that was rolled forward to June 30,2015.
This
actuarial
valuation
used the following
actuarial
assumptions,
applied to all periods
included
in the
measurement:
Inflation
Salary Increases (2012-2021)
Thereafter
Investment rate of return
3.04%
2.15-4.40% Based on age
3.15-5.40% Based on age
7.90%
Mortality
rates were based on the RP-2000
Combined
Healthy
Male and Female Mortality
Tables
(setback I year for males and females) for service retirement and beneficiaries
of former members with
adjustments
for mortality improvements
from the base year of2012
based on Projection Scale AA. The
RP-2000 Disabled Mortality Tables (setback 3 years for males and setback I year for females) are used
to value disabled retirees.
The actuarial assumptions
used in the July 1, 2014 valuation were based on the results of an actuarial
experience
study for the period July 1, 2008 to June 30, 2011.
It is likely that future experiences
will
not exactly conform to these assumptions.
To the extent that actual experience
deviates from these
assumptions,
the emerging liabilities may be higher or lower than anticipated.
The more the experience
deviates, the larger the impact on future financial statements.
In accordance
with State statute, the long-term
expected rate of return on plan investments
(7.90% at
June 30, 2015)
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.
- 47-


NOTES TO FINANCIAL
STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
A. Public Employees' Retirement System (PERS) (Cont'd.)
Best estimates of arithmetic real rates of return for each major asset class included in the pension plans'
target asset allocation as of June 30, 2015 are summarized
in the following table:
Long-Term
Expected Real
Rate of Return
Asset Class
Target
Allocation
Cash
5.00%
1.04%
U.S. Treasuries
1.75%
1.64%
Investment Grade Credit
10.00%
1.79%
Mortgages
2.10%
1.62%
High Yield Bonds
2.00%
4.03%
Inflation-Indexed
Bonds
1.50%
3.25%
Broad US Equities
27.25%
8.52%
Developed Foreign Equities
12.00%
6.88%
Emerging Market Equities
6.40%
10.00%
Private Equity
9.25%
12.41%
Hedge Funds/Absolute
Return
12.00%
4.72%
Real Estate (Property)
2.00%
6.83%
Commodities
1.00%
5.33%
Global Debt ex US
3.50%
-0.40%
REIT
4.25%
5.12%
Discount
Rate - The discount rate used to measure the pension liabilities of PERS was 4.90%. This
single blended
discount
rate was based on the long-term
expected
rate of return on pension
plan
investments
of 7.90%, and a municipal
bond rate of 3.80% as of June 30, 2015, based on the Bond
Buyer GO 20-Bond
Municipal
Bond Index which includes tax-exempt
general obligation
municipal
bonds with an average rating of AA/ Aa or higher. The projection of cash flows used to determine the
discount
rate assumed
that contributions
from plan members
will be made at the current member
contribution
rates and that contributions
from employers will be made based on the average of the last
five
years
of
contributions
made
in
relation
to
the
last
five
years
of
actuarially
determined
contributions.
Based
on those assumptions,
the plan's
fiduciary
net position
was projected
to be
available to make projected future benefit payments of current plan members through 2033. Therefore,
the long-term
expected rate of return on plan investments
was applied to projected
benefit payments
through 2033, and the municipal bond rate was applied to projected benefit payments after that date in
determining the total pension liability.
Sensitivity
of Net Pension
Liability
-
the
following
presents
the net pension
liability
of PERS
participating
employers
as of June 30, 2015, calculated
using the discount rates as disclosed above as
well as what the net pension liability would be if it were calculated
using a discount
rate that is 1
percentage point lower or 1 percentage rate higher than the current rate:
At 1% Decrease
At current discount rate
At 1% increase
(3.90%)
(4.90%)
(5.90%)
State
$27,802,122,942
$23,722,135,537
$20,314,768,782
Local
27,900,112,533
22,447,996,119
17,876,981,108
PERS Plan Total
$55!702!235!457
$46! 170!131!656
$38!191!749!890
- 48-


NOTES TO FINANCIAL
STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
A. Public Employees' Retirement System (PERS) (Cont'd.)
Components
of Net Pension Liability - The components
of the net pension liability for PERS, including
the State of New Jersey, at June 30, 2015 is as follows:
State
Local
Total
Total Pension Liability
$31,614,118,524
$43,109,580,038
$74,723,698,562
Plan Fiduciary Net Position
7,891 ,982,987
20,661 ,583,919
28,553,566,906
Net Pension Liability
$23J22~135~537
$22~447~996~112
$46~170~161~656
B. Police and Firemen's
Retirement
System (PFRS) - The Police and Firemen's
Retirement System is a
cost-sharing,
multiple employer
defined benefit pension plan as defined in GASB Statement No. 68.
The Plan is administered
by The New Jersey Division of Pensions and Benefits (Division). The more
significant aspects of the PFRS Plan are as follows:
Plan Membership
and Contributing
Employers-
Substantially
all full-time county and municipal police
or firemen and state firemen or officer employees with police powers appointed after June 30, 1944 are
enrolled
in PFRS.
Membership
and contributing
employers
of the defined
benefit
pension
plans
consisted of the following at June 30, 2015:
Inactive plan members or beneficiaries
currently receiving benefits
Inactive plan members entitled to but not yet receiving benefits
Active plan members
44,252
51
40,359
84.662
Total
Contributing
Employers - 585.
Pursuant to the provision of Chapter 78, P.L. 2011, COLA increases were suspended for all current and
future retirees of PFRS.
For the year ended December
31, 2015 the Borough's
total payroll for all employees was $6,230,036.
Total PFRS covered payroll was $2,517,691.
Covered payroll refers to all compensation
paid by the
Borough to active employees covered by the Plan.
Specific Contribution
Requirements
and benefit provisions - The contribution
policy is set by NJ.S.A
43:16A
and requires
contributions
by active members
and contributing
employers.
Pursuant
to the
provisions
of Chapter
78, P.L. 2011, the active member
contributions
rate increased
from 8.5% of
annual compensation
to 10.0% in October 2011. Employers'
contributions
are based on an actuarially
determined
amount,
which
includes
the normal
cost and unfunded
accrued
liability.
The annual
employer
contributions
include
funding
for basic retirement
allowances
and noncontributory
death
benefits.
The Borough's
cash basis contributions
to the Plan for the years ended December
31, 2014
and 2015 were $605,973 and $624,804, respectively.
- 49-


NOTES TO FINANCIAL
STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
B. Police and Firemen's
Retirement
System (PFRS) (Cont'd.)
Borough Contributions
are due and payable on April 1st in the calendar year subsequent to the close of
the plan year for which the contributions
requirements
were calculated.
Borough payments to PFRS for
the years ending December 31, 2014 and 2015 consisted of the following:
2014
2015
Normal Cost
$ 204,446
$ 198,814
Amortization
of Accrued Liability
336,551
354,780
Total Pension
540,997
553,594
NCGI Premiums
20,647
25,998
Total Regular Billing
561,644
579,592
Additional Billings:
Ch. 19, P.L. 2009
44,329
45,212
Total PFRS Payment
$ 605,973
$ 6241804
The vesting and benefit provisions
are set by N.J.S.A. 43:16A.
PFRS provides retirement
as well as
death and disability
benefits.
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
Definition
1
Members who were enrolled prior to May 22, 2010
2
Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011
3
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, as defined, up to 30 years plus 1% for each year of
service
in excess
of 30 years.
Members
may seek special
retirement
after achieving
25 years of
creditable
service,
in which benefits
would
equal 65% (tiers
1 and 2 members)
and 60% (tier 3
members)
of final compensation
plus 1% for each year of creditable
service over 25 years but not to
exceed 30 years.
Members may elect deferred retirement
benefits after achieving ten years of service,
in which case benefits
would begin at age 55 equal to 2% of final compensation
for each year of
service.
Pension
Liabilities,
Pension
Expense,
Deferred
Outflows
of Resources,
and Deferred
Inflows
of
Resources Related to Pensions - The regulatory
basis of accounting
which is basis for the preparation
of the Borough's
basic financial statements does not require or permit the inclusion of entity-wide,
full
accrual basis financial statements.
Accordingly,
the Borough does not recognize pension liabilities for
any current or prior period until fiscal period in which such payments will become due and payable.
At June 30, 2015, the PFRS reported a net pension liability of$16,656,514,197
for its Non-State, Non-
Special Funding
Situation Employer
Member
Group.
The Borough's
proportionate
share of the net
pension
liability
for the Non-State,
Non-Special
Funding
Situation
Employer
Member
Group
was
$12,509,575
or 0.075103%.
- 50-


NOTES TO FINANCIAL
STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
B. Police and Firemen's
Retirement System (PFRS) (Cont'd.)
At June 30, 2014, the PFRS reported a net pension liability of $12,579,072,492
for its Non-State, Non-
Special Funding
Situation Employer
Member Group.
The Borough's
proportionate
share of the net
pension
liability
for the Non-State
Non-Special
Funding
Situation
Employer
Member
Group
was
$9,492,284 or 0.075461 %.
Actuarial
Assumptions-
The total
pension
liability
in the June
30, 2015
measurement
date was
determined
by an actuarial valuation as of July 1,2014 that was rolled forward to June 30, 2015. This
actuarial
valuation
used the following
actuarial
assumptions,
applied to all periods
included
in the
measurement:
Inflation
Salary Increases (2012-2021)
Thereafter
Investment rate of return
3.04%
2.60-9.48% Based on age
3.60-10.48%
Based on age
7.90%
Mortality
rates were based on the RP-2000
Combined
Healthy Mortality
Tables projected
one year
using Projection
Scale AA and one year using Projection
Scale BB for male service retirements
with
adjustments
for mortality
improvements
from the base year based on Projection
Scale BB. Mortality
rates were based on the RP-2000 Combined
Healthy Mortality
Tables projected
fourteen years using
Projection
Scale BB for female service retirements
and beneficiaries
with adjustments
for mortality
improvements
from the base year of2014
based on Projection Scale BB.
The actuarial assumptions
used in the July 1, 2014 valuation were based on the results of an actuarial
experience study for the period July 1,2010 to June 30, 2013.
The long-term
expected
rate of return on pension
plan investments
(7.90%
at June 30, 2015) was
determined using a building-block
method in which best-estimate
ranges of expected future real rate of
return (expected returns, net of pension plans 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.
- 51-


NOTES TO FINANCIAL
STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
B. Police and Firemen's
Retirement
System (PFRS) (Cont'd.)
Best estimates of arithmetic real rates of return for each major asset class included in the PFRS's target
asset allocation as of June 30, 2015 are summarized
in the following table:
Long-Term
Asset Class
Target
Expected Real
Allocation
Rate of Return
Cash
5.00%
1.04%
U.S. Treasuries
1.75%
1.64%
Investment Grade Credit
10.00%
1.79%
Mortgages
2.10%
1.62%
High Yield Bonds
2.00%
4.03%
Inflation-Indexed
Bonds
1.50%
3.25%
Broad US Equities
27.25%
8.52%
Developed Foreign Equities
12.00%
6.88%
Emerging Market Equities
6.40%
10.00%
Private Equity
9.25%
12.41 %
Hedge Funds/Absolute
Return
12.00%
4.72%
Real Estate (Property)
2.00%
6.83%
Commodities
1.00%
5.33%
Global Debt ex US
3.50%
-0.40%
REIT
4.25%
5.12%
Discount Rate - The discount rate used to measure the pension liabilities
of PFRS was 5.79%. This
single blended
discount
rate was based on the long-term
expected
rate of return on pension
plan
investments
of 7.90%, and a municipal
bond rate of 3.80% as of June 30, 2015, based on the Bond
Buyer GO 20-Bond
Municipal
Bond Index which includes tax-exempt
general obligation
municipal
bonds with an average rating of AA/Aa or higher. The projection of cash flows used to determine the
discount
rate assumed
that contributions
from plan members
will be made at the current member
contribution
rates and that contributions
from employers
will be made based on the average of the last
five years of contributions.
Based on those assumptions,
the plan's fiduciary net position was projected
to be available
to make projected
future benefit payments
of current
plan members
through
2045.
Therefore, the long-term
expected rate of return on plan investments
was applied to projected benefit
payments through 2045, and the municipal
bond rate was applied to projected benefit payments after
that date in determining
the total pension liability.
- 52-


NOTES TO FINANCIAL
STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
B. Police and Firemen's
Retirement
System (PFRS) (Cont'd.)
Sensitivity
of Net Pension
Liability
-
the
following
presents
the net pension
liability
of PFRS
participating
employers
as of June 30, 2015, calculated using the discount rates as disclosed above as
well as what the net pension liability would be if it were calculated
using a discount rate that is 1
percentage point lower or 1 percentage rate higher than the current rate:
At 1% Decrease
At current discount rate
At 1% increase
(4.79%)
(5.79%)*
(6.79%)
State
$ 5,169,538,395
$ 4,293,672,366
$ 3,581,810,627
Local
23,884,266,996
18,117,234,618
13,414,734,988
PFRS Plan Total
$29~053~805!391
$22~410~906!984
$16~996~545~615
*- Local Share includes $1,460,720,421
of Special Funding Situation allocated to the State ofNJ
as a
non-employer.
Components
of Net Pension Liability - The components
of the net pension liability for PFRS, including
the State of New Jersey, at June 30, 2015 is as follows:
State
Total
Total Pension Liability
Plan Fiduciary Net Position
$ 6,053,30 I,057
1,759,628,691
$41,464,464,848
23,347,230,230
$47,517,765,905
25,106,858,921
Net Pension Liability
$ 4293,672.366
$18,117,234,618
$22.410,906,984
C. Defined Contribution
Retirement
System (DCRP)
The Defined Contribution
Retirement
Plan (DCRP) is a multiple employer defined contribution
plan as
defined in GASB Statement No. 68. The Plan is administered
by The New Jersey Division of Pensions
and Benefits (Division). The more significant aspects of the DCRP are as follows:
Plan Membership
and Contributing
Employers-
Enrollment
in the DCRP is required for state or local
officials, elected or appointed on or after July 1,2007; employees enrolled in PFRS or PERS on or after
July 1, 2007, who earn salary in excess of established
"maximum
compensation"
limits; employees
otherwise
eligible to enroll in PFRS or PERS on or after November
2, 2008, who do not earn the
minimum
annual salary for tier 3 enrollment
but who earn salary of at least $5,000 annually;
and
employees
otherwise
eligible to enroll in PFRS or PERS after May 21, 2010, who do not work the
minimum number of hours per week required for tier 4 or tier 5 enrollment,
but who earn salary of at
least $5,000 annually. At June 30, 2015, the membership
in the DCRP, based on the information within
the Division's
database, was 36,808.
Contribution
Requirement
and Benefit Provisions
- State and local government
employers
contribute
3% of the employees base salary.
Active members contribute 5.5% of base salary.
- 53-


NOTES TO FINANCIAL
STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
C. Defined Contribution
Retirement System (DCRP) (Cont'd.)
Eligible
members
are provided
with a defined
contribution
retirement
plan intended
to qualify for
favorable
Federal
income
tax treatment
under
IRC
Section
401(a),
a noncontributory
group
life
insurance
plan and a noncontributory
group disability
benefit plan.
A participant's
interest in that
portion of his or her defined contribution retirement plan account attributable to employee contributions
shall immediately
become and shall at all times remain fully vested and non forfeitable.
A participant's
interest
in that portion
of his or her defined
contribution
retirement
plan account
attributable
to
employer contributions
shall be vested and non forfeitable
on the date the participant
commences
the
second year of employment
or upon his or her attainment of age 65, while employed by an employer,
whichever occurs first.
For the year ended December
31, 2015 the Borough's
total payroll for all employees was $6,230,036.
Total DCRP covered payroll was $187,328.
Covered payroll refers to all compensation
paid by the
Borough to active employees covered by the Plan.
Borough and employee contributions
to the DCRP
for the year ended December 31,2015
were $5,620 and $13,097, respectively.
Note 8:
POST-RETIREMENT
HEALTH CARE BENEFITS
Plan Description:
The Borough
of Middlesex
contributes
to the State Health
Benefits
Program
(SHBP),
a
cost-sharing,
multiple-employer
defined
benefit
post-employment
healthcare
plan
administered
by the State of New Jersey Division of Pensions and Benefits.
SHBP was established
in
1961 under NJ.S.A.
52:14-17.25
et seq., to provide health benefits to State employees,
retirees, and
their dependents.
Rules governing the operation and administration
of the program are found in Title 17, Chapter 9 of the
New Jersey Administrative
Code. SHBP provides medical, prescription
drugs, mental health/substance
abuse, and Medicare Part B reimbursement
to retirees and their covered dependents.
The SHBP was extended to employees, retirees, and dependents of participating
local public employers
in 1964. Local employers must adopt a resolution to participate
in the SHBP. In order to receive health
benefits,
retirees
must have been enrolled
in the pension
system for 25 years.
All active full time
employees are covered by the SHBP.
The State Health Benefits Commission
is the executive body established by statute to be responsible for
the operation
of the SHBP.
The State of New Jersey Division
of Pensions
and Benefits
issues a
publicly
available
financial
report
that
includes
financial
statements
and required
supplementary
information for the SHBP.
That report may be obtained by writing to: State of New Jersey Division of
Pensions
and
Benefits,
P.O.
Box
295,
Trenton,
NJ
08625-0295
or
by
visiting
their
website
www.state.nj.us/treasury
/pensions.
Funding Policy:
Participating
employers
are contractually
required to contribute based on the amount
of premiums
attributable
to their retirees.
Post-retirement
medical benefits under the plan have been
funded on a pay-as-you-go
basis since 1994.
- 54-


NOTES TO FINANCIAL
STATEMENTS
Note 8:
POST-RETIREMENT
HEALTH CARE BENEFITS (CONT'D.)
Cost sharing requirements
for retirees are as follows:
1. Any eligible employee who was retired as of June 28, 2011 (the effective date of Ch. 78, P.L.
2011) is not required to contribute to the cost of benefits.
2.
Active employees who had accrued 25 years of service at June 28, 2011 will not be required to
contribute to the costs of benefits upon retirement.
3.
Active employees
who had accrued 20 years of service at June 28, 2011 will be required to
contribute
1.5% of their retirement benefit towards the cost of post-retirement
health benefits.
4.
Active
employees
who had not accrued
20 years
of service
at June 28, 2011 will, upon
retirement continue to pay the applicable percentage of health care costs as set forth in the law.
However,
retiree contributions
will be based upon the retirement
benefit rather than the final
active salary.
The Borough
of Middlesex
contributions
to SHBP
for the year ended
December
31, 2015 were
$964,611.41,
which equaled
the required
contributions
for the year. There were approximately
43
retired participants
eligible at December 31, 2015.
Note 9:
ACCRUED
SICK AND VACATION
BENEFITS
The Borough has permitted employees
to accrue unused sick pay, which may be taken as time off or
paid at a later date at an agreed upon rate. It is estimated that the cost of such unpaid sick and vacation
pay would approximate
$125,703.18
and $107,615.35
for 2015 and 2014.
This amount represents the
current value of all accumulations,
and is not intended to portray amounts that would be recorded under
GAAP. Expenditures
for payment of accrued sick and vacation benefits are recorded in the period in
which payments are made as part of the current year's operating budget appropriations.
In addition the
Police are entitled to compensation
hours capped at a maximum of 480 hours per officer. The estimated
cost of such pay would approximate
$335,587.12
and $298,397.34
for 2015 and 2014.
Note 10:
RISK MANAGEMENT
The Borough, together with other governmental
units, is a member of the Garden State Municipal Joint
Insurance
Fund (the Fund). The Fund, which is organized
and operated
pursuant
to the regulatory
authority of the Departments
ofInsurance
and Community
Affairs, State of New Jersey, provides for a
pooling of risks, subject to established
limits and deductibles.
The Fund's governing board based upon
actuarial and budgetary requirements
calculates payments to the Fund.
Each participant
in the Fund is
jointly and severably
obligated for any deficiency
in the amount available to pay all claims. Lines of
coverage
provided
by the Fund
include
property;
boiler
and machinery;
equipment
floater;
auto
physical;
blanket
bond;
auto
liability;
general
liability;
law enforcement
liability;
public
official
liability and worker compensation
and employer liability.
At December 31,2014,
the Fund reported for all years combined, total assets of$37,541,477,
liabilities
and expenses of $36,638,899,
which includes case reserves of $24,257,282
and IBNR of $11,878,934
and net position for all years of $902,578.
- 55-


NOTES TO FINANCIAL
STATEMENTS
Note 10:
RISK MANAGEMENT
(CONT'D.)
New Jersey Unemployment
Compensation
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
table 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 2015 and the previous two years
Borough
Fiscal
Contributions
Employee
Amount
Ending
Year
And Interest
Contributions
Reimbursed
Balance
2015
$1,620.14
$1,204.68
$4,743.69
$212,263.75
2014
1,653.96
2,747.75
24,355.67
214,182.62
2013
125,866.07
1,009.97
12,703.18
234,136.58
Note 11:
COMMITMENTS
AND CONTINGENCIES
The Borough participates
in several federal and state financial assistance
grant programs. Entitlement
to the funds
is generally
conditioned
upon
compliance
with
terms
and conditions
of the grant
agreements and applicable regulations,
including the expenditures
of funds for eligible purposes. These
programs are also subject to compliance and financial audits by the grantors or their representatives.
As
of December
31, 2015, the Borough does not believe that any material liabilities will result form such
audits.
As of the date of this report, the Borough has litigation pending that traditionally
would be covered
through the procurement
of liability insurance coverage's.
Note 12:
DEFERRED
COMPENSATION
The Borough
has instituted
a Deferred
Compensation
Plan pursuant
to section 457 of the Internal
Revenue Code and P.L. 1977, C. 381; P.L. 1978, C. 39; P.L. 1980, C. 78; and P.L. 1997, C. 116 of the
Statutes of New Jersey.
The Plan is an arrangement
whereby a public employer may establish a plan
and permit its employees
to voluntarily
authorize
a portion of their current salary to be withheld and
invested in one or more of the types of investments
permitted
under the governing
regulations.
The
Borough has engaged a private contractor to administer the plan.
- 56-


NOTES TO FINANCIAL
STATEMENTS
Note 13:
INTERFUNDS
The following interfund balances remained on the balance sheet date at December 31, 2015:
Interfunds
Interfunds
Fund
Receivable
Payable
Current Fund
$27,994.44
$875,239.19
Grant Fund
499,625.34
Assessment Trust Fund
21,039.50
Animal Control Fund
13,619.28
Trust Fund
657,546.84
General Capital Fund
7,164.08
281,932.99
Swimming Pool Util. Oper Fund
83,599.90
499.74
Swimming Pool Util. Cap Fund
83,599.90
Total
$112751930.60
$112751930.60
These interfund balances are not an indication that the respective fund cannot meet its obligation.
The
interfund amounts are reflective
of year-end
closing journals
and adjustments.
The balances resulted
from the time lag between the dates that (1) interfund goods and services are provided or reimbursable
expenditures
occur, (2) transactions
are recorded in the accounting
system, and (3) payments between
funds are made.
Note 14:
SUBSEQUENT
EVENTS
Subsequent to the year ending December 31,2015
and as of the date of the audit report, no events have
occurred that would have a material effect on the financial statements.
- 57-


BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
PART II
REQUIRED
SUPPLEMENTARY
INFORMATION
- 58-


BOROUGH
OF MIDDLESEX
SCHEDULE
OF THE BOROUGH'S
SHARE OF THE NET PENSION LIABILITY
PUBLIC EMPLOYEES
RETIREMENT
SYSTEM (Local Group)
Last 10 Fiscal Years*
Borough's Proportion
of the
Net Pension Liability
0.032148%
Borough's Proportionate
Share of the
Net Pension Liability
$6,018,951
Borough's Covered-Employee
Payroll
$ 2,358,908
Borough's Proportionate
Share of the
Net Pension Liability as a percentage
of the Covered-Employee
Payroll
255.16%
Plan Fiduciary Net Position as a
percentage of the Total Pension
Liability
42.74%
* Amounts presented for each fiscal year were determined
as of June 30.
Note: Percentages
shown are Plan-wide,
and include NPL and PFNP
data that include employees of the State of New Jersey.
- 59-
0.033254%
$7,464,929
$ 2,407,049
310.13%
38.21%
Schedule 1


BOROUGH
OF MIDDLESEX
SCHEDULE
OF THE BOROUGH'S
CONTRIBUTIONS
PUBLIC EMPLOYEES
RETIREMENT
SYSTEM (Local Group)
Last 10 Fiscal Years*
2014
2015
Contractually
Required Contribution
$
255,353
$
283,016
Contribution
in Relation to
Contractually
Required Contribution
$
(255,353)
$
(283,016)
Contribution
deficiency (excess)
$
$
Borough's Proportionate
Share of the
Payroll
$ 2,358,908
$
2,407,049
Contributions
as a percentage of
Covered Employee Payroll
10.83%
11.76%
* Amounts presented for each fiscal year were determined
as of June 30.
- 60-
Schedule 2


BOROUGH
OF MIDDLESEX
SCHEDULE
OF THE BOROUGH'S
SHARE OF THE NET PENSION LIABILITY
POLICE AND FIREMEN RETIREMENT
SYSTEM
(Non-State, Non-Special
Funding Situation Employer Member Group)
Last 10 Fiscal Years*
Proportion of the Non-State, Non-Special
Funding Situation Employer Group Net
Pension Liability attributable to the Borough
0.075461 %
0.075103%
Share of the Liability of the State of New Jersey
for the Net Pension Liability of the Non-State,
Non-Special
Funding Situation Employer Group
$9,492,284
$12,509,575
Borough's Covered-Employee
Payroll
$2,467,337
$2,517,691
Share of the Liability of the State of New Jersey
for the Net Pension Liability of the Non-State,
Non-Special
Funding Situation Employer
Group as a percentage
of the Borough's
Covered-Employee
Payroll
384.72%
496.87%
Plan Fiduciary Net Position as a
percentage of the Total Pension
Liability (See Note Below)
58.86%
52.84%
* Amounts presented for each fiscal year were determined as of June 30.
Note: Percentages
shown are Plan-wide, and include NPL and PFNP
data that include employees of the State of New Jersey.
- 61-
Schedule 3


BOROUGH
OF MIDDLESEX
SCHEDULE
OF THE BOROUGH'S
CONTRIBUTIONS
POLICE AND FIREMEN RETIREMENT
SYSTEM
(Non-State, Non-Special
Funding Situation Employer Member Group)
Last 10 Fiscal Years*
2014
2015
Contractually
Required Contribution
$
605,973
$
624,804
Contribution
in Relation to
Contractually
Required Contribution
$
(605,973)
$
(624,804)
Contribution
deficiency (excess)
$
$
Borough's Proportionate
Share of the
Payroll
$
2,467,337
$
2,517,691
Contributions
as a percentage of
Covered Employee Payroll
24.56%
24.82%
* Amounts presented for each fiscal year were determined as of June 30.
- 62-
Schedule 4


BOROUGH
OF MIDDLESEX
COUNTY OF MIDDLESEX,
NEW JERSEY
NOTES TO REQUIRED
SUPPLEMENTARY
PENSION INFORMATION
DECEMBER
31,2015
NOTE 1. CHANGES IN ASSUMPTIONS
Changes in Assumptions
were applicable for current fiscal year.
- 63-


BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
PART III
SUPPLEMENTARY
SCHEDULES
- 64-


CURRENT FUND
- 65-


CURRENT FUND
SCHEDULE
OF CASH
ExhibitA-4
Cash Balance December 31,2014
.
A
Increased by Cash Receipts
Miscellaneous
Revenue Not Anticipated. ............ A-I, A-8
Due NJ Sr Citizens and Veterans Deductions...
A- 6
Taxes Receivable......
A- 7
Miscellaneous
Anticipated
Revenue..................
A- 8
Sewer Rents Collections......
A- 9
Interfunds...
A-10
Various Accounts Payable & Reserves...............
A-14
Petty Cash Retumed..................
A- 5
180,334.80
139,000.00
40,711,397.50
3,251,597.29
654,356.82
1,009,557.94
1,511,494.54
300.00
$
3,484,772.04
Total Cash Receipts...
47,458,038.89
Decreased by Disbursements
Budget Appropriations
.
Interfunds
.
Sewer Flow Charge Overpayments
Refunded
Tax Overpayments
.
Taxes Payable
.
Various AlP, & Reserves
.
Petty Cash Advanced
.
A-3
A-10
A-II
A-12
A-13
A-14
A-5
(15,169,949.69)
(583,163.11)
(366,152.42)
(69,464.81)
(28,242,494.81 )
(29,341.00)
(300.00)
Total Cash Disbursements...
(44,460,865.84)
Cash Balance December 31, 2015
.
A
- 66-
$ ==6=,4:::::8:.;,1=,9::::;45=.0:=9=


ExhibitA-5
CURRENT FUND
SCHEDULE
OF PETTY CASH AND CHANGE FUNDS
Balance
Balance
December 31,
December 3 1,
2014
Advanced
Returned
2015
Change Fund
Collector - Treasurer
$
200.00
$
$
$
200.00
Municipal Court
150.00
150.00
Construction
50.00
50.00
Borough Clerk
50.00
50.00
Swim Pool Utility
50.00
50.00
Petty Cash Funds:
Borough Clerk
100.00
100.00
Police
100.00
100.00
Recreation
100.00
100.00
$
500.00
$
300.00
$
300.00
$
500.00
Ref.
A
A-4
A-4
A
- 67-


Exhibit - A-6
SCHEDULE
OF DUE FROM STATE OF NEW JERSEY -
FOR ALLOWABLE
DEDUCTIONS
PER CHAPTER
20, P.L. 1976
CURRENT FUND
Balance - December 3 1, 2014
A
$
34,992.30
Increased by:
Allowable Deductions per
Tax Billings
2015 Sr. Citizens and Vet.
Ded. Allowed by Collector
Balance - December 31, 2015
A-6
140,250.00
A-6
3,250.00
143,500.00
178,492.30
A-4
139,000.00
A-6
331.25
139)31.25
A
$
39161.05
Decreased by:
Collected
2015 Sr. Citizens and Vet.
Ded. Disallowed
by Collector
Analysis of Sr. Citizens & Veterans
Deductions Allowed - 2015 Taxes
Per Tax Billings
Allowed (Disallowed)
by Tax Collector (Net)
A-6
A-6
$
140,250.00
2918.75
A-7
$
143,168.75
- 68-


ExhibitA-7
CURRENT FUND
SCHEDULE OF PROPERTY TAXES RECEIVABLE AND LEVY ANALYSIS
Property
CY16
CY15
CY14
Tax
Acquired
Total
Prepaid
Current
Delinquent
Arrears
Liens
for Taxes
Ref.
Balance 12/3112014 ..
$
2,384,679.49
$
(167,198.35)
$
$
823,307.17
$ 305,431.67
$
1,423,139.00
Billings 1Levy:
Original Levy...
A-7
40,571,022.76
40,571,022.76
Added & Omitted ..
......
A-7
29,299.75
29,299.75
Added by Assessor ....
A-7
26,872.43
21,596.69
5,275.74
TTL Interest & Costs ...
A-9
786.95
786.95
Canceled Taxes..
(6,138.15)
(1,207.32)
(4,930.83)
Transfers
Tax Lien ..
(20,528.64)
20,528.64
Revenue
Sr.Citizens & Vets...
Original Levy .....
A-6
(140,250.00)
(140,250.00)
Allowed/Disallowed ...
A-6
(2,918.75)
(2,918.75)
Cash Receipts ..
A-4
(40,711,397.50)
(227,834.83)
(39,656,570.05)
(818,376.34)
(8,616.28)
Prepaid Applied ..
167,198.35
(167,198.35)
Q\
Balance 12/31/2015
..
$
2,151,956.98
$
(227,834.83)
$
633,246.09
$
$
$ 323,406.72
$
1,423,139.00
<o
Ref
A
A,A-7
A
A
A
A
Analysis of2015 Prol1em Tax Leyy:
Current
Tax Yield:
Tax Leyy:
Ref
Taxes Realized:
Ref.
General Purpose Tax
$
40,571,022.76
Local School District Tax
A-15
$ 22,886,695.00
Sr. Citizens & Vets
A-6,A-7
$
143,168.75
Added Taxes
29299.75
County Tax
A-13
5,172,586.83
Cash Receipts
A-7
39,656,570.05
County Open Space
A-13
422,078.45
Prepayments
A-7
167 198.35
$
40600322.51
Due County - Added & Omitted
A-13
4,046.53
Subtotal
A-I
39,966,937.15
Res. For UncoIl. Tax
A-3
875000.00
28,485,406.81
40,841,937.15
Local Tax for Municipal Purposes
A-2
11,619,410.80
Allocated to School
Minimum Library Tax
A-2
467,044.26
and County
A-13,A-15
(28,485,406.81)
Add: Additional Tax Levied
28460.64
A-2
$ 12356530.34
$
40,600,322.51


ExhibitA-8
CURRENT FUND
SCHEDULE
OF NONBUDGET
REVENUES & VARIOUS ACCOUNTS
RECEIVABLES
Accrued!
Cash
Dec. 31,2014
Adjustments
Receipts
Dec. 31,2015
Revenue Accounts Receivable:
Ref.
Fines and Costs - Municipal Court
$
32,254.84
21,051.84
$
(32,254.84)
$
21,051.84
A-2
32,254.84
21,051.84
{32,254.84}
21,051.84
Non - Budget Revenue:
Easements
13,500.00
(13,500.00)
Health Benefits Contrib. - Library
36,829.80
(36,829.80)
Abondoned Property
39,650.00
(39,650.00)
Police Outside Service Admin
10,595.75
(10,595.75)
Duplicate Rec & Tax Bills
920.00
(920.00)
Property Tax List
460.00
(460.00)
Landlord Registration
6,890.00
(6,890.00)
Senior Citizens & Veterans Deduct. - Admin. Fee
2,780.00
(2,780.00)
Lawn Maintenance
8,803.32
(8,803.32)
'-1
Sale of Municipal Assets
29,472.38
(29,472.38)
0
Towing License
1,575.00
(1,575.00)
Prior Year Outstanding
Checks Cancelled
9,694.89
(9,694.89)
Miscellaneous
19,163.66
{l9,163.66}
A-I, A-2,A-4
180,334.80
{l80,334.80}
Total. ..............................................................................
$
32,254.84
$
201,386.64
$
{212,589.64}
$
21,051.84
Ref.
A
A-4
A
Ref.
Analysis of Miscellaneous
Revenues:
Account Receivable Collections
A-4
$
32,254.84
Current Year Collections
A-4
3,219,342.45
Subtotal
A-4
3,251,597.29
Sewer Collections
A-9
654,356.82
Sewer Overpayments Applied
A-9
155,337.06
Interest on Investments
A-I0
7,658.64
Grants Realized - Grant Fund
A-I0
34,682.00
A-2
$ 4,103,631.81


Exhibit - A-9
SCHEDULE
OF SEWER FLOW CHARGES
RECEIVABLE
CURRENT FUND
REF.
Balance - December 31, 2014
A
$
21,445.91
Increased by:
Sewer Flow Charges:
User Charges
2014 Billed in 2015
Reserve
709,280.58
2015 Billed in 2015
Reserve
906877.37
1,616,157.95
1,637,603.86
Decreased by:
Collected - Current Year
A-4,A-8
149,431.45
Collected - Prior Year (Net)
A-4,A-8
504,925.37
Overpayments
Applied
A-8,A-12
155,337.06
Canceled
Reserve
17028.90
826,722.78
Balance - December 31,2015
A
$
810,881.08
Collcetion Analysis:
Budget Revenues
A-9
$
149,431.45
Revenue Accounts Receivable
A-9
504,925.37
A-4,A-8
$
654,356.82
Analysis of Balance:
Year - 2013
$
53,435.16
Year - 2014
757445.92
$
810:881.08
-71-


Exhibit A-1O
CURRENT
FUND
STATEMENT
OF INTERFUNDS
RECEIVABLE/
PAYABLE
Dec. 31, 2014
Cash
Receipts
Cash
Disbursements
Budget
Revenues
Budget
Appropriations
Adjustments
Dec. 31, 2015
Interfunds
Animal
Control
Fund ..................................
$
(5,527.28)
$
(8,092.00)
$
(13,619.28)
Trust Assessment
Fund ................................
(13,684.88)
$
(190.54)
(13,875.42)
Swimming
Pool Utility Operating
Fund ............
(841.05)
$
7,809.41
(7,468.10)
(499.74)
GrantFund
..............................................
456,653.77
68,536.18
$
(49,339.61)
(34,682.00)
$
34,682.00
475,850.34
Trust - Other Fund .......................................
933,212.35
(533,823.50)
399,388.85
'-l
N
Total ...........................................................
$
436,600.56
$ 1,009,557.94
$
{583,163.112
$
{42,340.642
$
34,682.00
$
(8,092.002
$
847,244.75
A
A-4
A-4
A-l,A-8
A-l,A-3
A-I
A
$
436,600.56
$
(27,994.44)
875,239.19
$
847.144.75
Receivables
Payables
$
(20,053.21)
456653.77


ExhibitA-11
Page lof6
SCHEDULE
OF 2014 APPROPRIATION
RESERVES
BALANCE
BALANCE
AFTER
PAID OR
BALANCE
DEC. 31. 2014
ENCUMBRANCES
MODIFICATION
CHARGED
LAPSED
Ollerations
Within "CAPS"
General Administration
Salaries and Wages
$
69,306.93
$
$
69,306.93
$
$
69,306.93
Mayor and Council
Salaries and Wages
0.24
0.24
0.24
Other Expenses
12,935.76
4,191.70
17,127.46
4,454.60
12,672.86
Municipal
Clerk
Other Expenses
680.90
2,900.79
3,581.69
2,922.79
658.90
Postage for All Departments
Other Expenses
5,830.04
84.98
5,915.02
84.98
5,830.04
Printing and Advertising
Other Expenses
11,242.84
11,242.84
204.24
11,038.60
Financial
Administration
Salaries and Wages
2,404.03
2,404.03
2,404.03
Other Expenses
5,539.75
831.99
6,371.74
2,527.11
3,844.63
'I
Annual Audit
C;.:I
Other Expenses
41,200.00
41,200.00
40,150.00
1,050.00
Revenue Administration
Other Expenses
3,265.22
2,748.33
6,013.55
2,705.33
3,308.22
Tax Assessment
Administration
Other Expenses
1,036.76
163.70
1,200.46
163.70
1,036.76
Legal Services
Other Expenses
21,137.99
12,159.78
33,297.77
18,174.78
15,122.99
Liquidation
of Tax Title Liens and
Foreclosed
Property
500.00
500.00
500.00
Engineering
Services
Other Expenses
19,373.49
19,373.49
2,036.93
17,336.56
Computer
Data Services
Other Expenses
12,553.84
16,836.37
29,390.21
20,232.33
9,157.88
LAND USE ADMINISTRATION:
Planning
Board
Other Expenses
6,194.25
400.00
6,594.25
2,475.00
4,119.25
Zoning Board of Adjustment
Salaries and Wages
4,550.00
4,550.00
4,550.00
Other Expenses
6,776.81
6,776.81
6,776.81


ExhibitA-ll
Page 2 of6
SCHEDULE
OF 2014 APPROPRIATION
RESERVES
BALANCE
BALANCE
AFTER
PAID OR
BALANCE
DEC. 31. 2014
ENCUMBRANCES
MODIFICATION
CHARGED
LAPSED
INSURANCE
Temporary
Disability
Insurance
$
1,595.14
$
$
1,595.14
$
$
1,595.14
Long-Term
Disability
Insurance
2,093.94
2,093.94
2,093.94
Liability
Insurance
9,153.26
9,153.26
9,153.26
Workmen's
Compensation
17,188.72
17,188.72
17,188.72
Employees
Group Insurance
19,367.84
19,367.84
19,367.84
PUBLIC
SAFETY
Police Department
Salaries and Wages
96,639.31
96,639.31
6,313.44
90,325.87
Other Expenses
7,607.81
33,811.49
41,419.30
36,519.57
4,899.73
Juvenile Conference
Committee
Salaries and Wages
25.78
25.78
25.78
Other Expenses
250.00
250.00
250.00
'1
Office of Emergency
Management
~
Other Expenses
13,950.89
2,477.61
16,428.50
3,455.61
12,972.89
Fire Department
Other Expenses
8,614.79
11,441.58
20,056.37
16,010.48
4,045.89
Hazardous
Waste Facilities Tax-
Other Expenses
5,000.00
5,000.00
5,000.00
Fire Hydrant
Fees
Other Expenses
17,362.59
17,362.59
17,294.31
68.28
Aid to Volunteer Ambulance
Companies
25,000.00
25,000.00
25,000.00
Municipal
Prosecutor's
Office
Salaries and Wages
0.60
0.60
0.60
Municipal
Court
Salaries and Wages
14,715.61
14,715.61
25.00
14,690.61
Other Expenses
1,720.79
1,134.29
2,855.08
1,482.99
1,372.09


ExhibitA-11
Page 3 of6
SCHEDULE
OF 2014 APPROPRIATION
RESERVES
BALANCE
DEC. 31, 2014
ENCUMBRANCES
BALANCE
AFTER
MODIFICATION
PAID OR
CHARGED
BALANCE
LAPSED
PUBLIC WORKS
Road Repairs and Maintenance
Salaries and Wages
$
11,819.67
$
$
11,819.67
$
$
11,819.67
Other Expenses
32,088.76
10,370.07
42,458.83
13,188.78
29,270.05
Shade Tree Commission
Salaries and Wages
60.58
60.58
60.58
Other Expenses
8,455.22
11,700.00
20,155.22
11,700.00
8,455.22
Solid Waste Collection
Salaries and Wages
9,078.32
9,078.32
9,078.32
Garbage and Trash Removal
Salaries and Wages
76,859.25
76,859.25
76,859.25
Other Expenses
61,222.59
2,029.56
63,252.15
2,412.67
60,839.48
Building
and Grounds
Other Expenses
3,191.60
19,866.47
23,058.07
20,967.43
2,090.64
~
Maintenance
of Communications
Equipment
for All Departments
Other Expenses
500.00
500.00
500.00
HEALTH AND HUMAN
SERVICES
Public Health Services (Board of Health)
Salaries and Wages
254.97
254.97
254.97
Other Expenses
174.00
174.00
174.00
Animal Control
Other Expenses
6,166.67
6,166.67
4,666.66
1,500.01
Senior Nutrition
-Program
Costs
Salaries and Wages
19,442.12
19,442.12
19,442.12
Title III Senior Medical Transportation
- Program
Costs
Salaries and Wages
11,967.85
11,967.85
11,967.85
Title III Information
& Assistance
- Program
Costs
Salaries and Wages
661.35
661.35
661.35


ExhibitA-11
Page 4 of6
SCHEDULE
OF 2014 APPROPRIATION
RESERVES
BALANCE
BALANCE
AFTER
PAID OR
BALANCE
DEC. 31, 2014
ENCUMBRANCES
MODIFICATION
CHARGED
LAPSED
PARKS AND RECREATION
Recreation
Services and Programs
Salaries and Wages
$
1,237.58
$
$
1,237.58
$
$
1,237.58
Other Expenses
1,397.55
3,188.43
4,585.98
3,242.43
1,343.55
Parks and Playgrounds
Salaries and Wages
4,171.80
4,171.80
4,171.80
Other Expenses
17,675.22
948.00
18,623.22
1,178.00
17,445.22
Celebration
of Public Events
Other Expenses
5,772.16
384.00
6,156.16
384.00
5,772.16
Senior Citizens
Bus Transportation
Other Expenses
6.94
6.94
6.94
Recreational
Field Development
Other Expenses
500.00
500.00
500.00
Senior Citizen Coordinator
'I
Other Expenses
808.74
1,324.33
2,133.07
1,174.33
958.74
0\
OTHER COMMON
OPERATING
FUNCTIONS-
UNCLASSIFIED
Accumulated
Sick Leave Compensation
Salaries and Wages
11,673.07
11,673.07
11,673.07
Housing and Community
Advisory
Board
Other Expenses
100.00
100.00
100.00
Environmental
Advisory
Council
Other Expenses
1,150.00
1,150.00
1,150.00
Maintenance
of Tax Map
Other Expenses
1,000.00
1,000.00
995.00
5.00
Beautification
Committee
Other Expenses
862.39
197.61
1,060.00
197.61
862.39
Multi-Family
Solid Waste Collection
Other Expenses
55,000.00
55,000.00
28,137.60
26,862.40


Exhibit A-11
Page 5 of6
SCHEDULE
OF 2014 APPROPRIATION
RESERVES
BALANCE
BALANCE
AFTER
PAID OR
BALANCE
DEC. 31 2014
ENCUMBRANCES
MODIFICATION
CHARGED
LAPSED
UTILITY
EXPENSES
AND BULK PURCHASES
Electricity
$
20,203.83
$
$
20,203.83
$
18,396.19
$
1,807.64
Street Lighting
22,804.57
22,804.57
9,016.23
13,788.34
Telephone
(Excluding
Equipment
Acquis.)
6,587.06
6,587.06
1,520.76
5,066.30
Water
6,323.42
6,323.42
2,932.19
3,391.23
Gas (Natural or Propane)
6,197.31
6,197.31
4,458.39
1,738.92
Fuel Oil (Diesel Fuel)
30,827.97
30,827.97
2,966.08
27,861.89
Gasoline
469.52
469.52
469.52
Sewer Processing
and Disposal
Other Expenses
889.75
4,344.00
5,233.75
2,998.00
2,235.75
LANDFILL!
SOLID WASTE DISPOSAL
COSTS:
Landfill Fees:
'-l
Other Expenses
70,831.26
70,831.26
30,658.56
40,172.70
'-l
CODE ENFORCEMENT
AND ADMINISTRATION:
Construction
Inspector, Plumbing
Inspector
and Code Enforcer
Salaries and Wages
7,334.44
7,334.44
7,334.44
Other Expenses
3033.12
662.52
3695.64
699.42
2996.22
Total Operations
Within "CAPS"
958,616.57
169,197.60
1,127,814.17
364,123.52
763,690.65
Contingent
8000.00
8000.00
2839.70
5 160.30
Total Operations
Including
Contingent
Within "CAPS"
966616.57
169197.60
1135814.17
366,963.22
768850.95


Exhibit A-ll
Page 6 of6
SCHEDULE
OF 2014 APPROPRIATION
RESERVES
BALANCE
BALANCE
AFTER
PAID OR
BALANCE
DEC. 31, 2014
ENCUMBRANCES
MODIFICATION
CHARGED
LAPSED
STATUTORY
EXPENDITURES:
Contribution
to:
Social Security
System (O.A.S.I.)
$
27,110.93
$
$
27,110.93
$
$
27,110.93
Defined Contribution
Retirement
Program
4348.53
4348.53
260.91
4087.62
Total General Appropriations
for
Municipal
Purposes
Within "CAPS"
998076.03
169197.60
1 167,273.63
367,224.13
800049.50
Operations
Excluded
from "CAPS"
Piscataway
Sewerage Authority
- Share of Costs
27,794.62
27,794.62
27,794.62
Stormwater
Pollution
Programs:
NJDES/Stormwater
Permit
Other Expense
3,000.00
3,000.00
3,000.00
Middlesex
County Improvement
Authority
"-l
County Curbside
Collection
Program
10457.59
10457.59
9049.31
1408.28
00
Total Operations
- Excluded
from "CAPS"
41252.21
41252.21
9049.31
32202.90
Total General Appropriations
$
1039328.24
$
169197.60
$
1,208,525.84
$
376273.44
$
832,252.40
Ref.
A
A
A-I
Accounts
Payable
A-14
$
10,121.02
Disbursed
A-4
366,152.42
$
376273.44


Exhibit - A-12
SCHEDULE
OF SEWER FLOW CHARGE OVERPAYMENTS
CURRENT FUND
Balance - December 31, 2014
A
$
224,801.87
Decreased by:
Overpayments
Refunds
Overpayments
Applied
A-4
A-9
69,464.81
155,337.06
$
224,801.87
-79 -


Exhibit A-13
CURRENT FUND
SCHEDULE OF TAXES PAYABLE
Dec. 31, 2014
Taxes
Levied
Cash
Disbursements
Dec. 31, 2015
$
5,172,586.83
$
(5,172,586.83)
$
422,078.45
(422,078.45)
4,046.53
(4,046.53)
22,643,783.00
(22,643,783.00)
$
28,242,494.81
$ (28,242,494.81)
$
A-l,A-7,A-15
A-4
A
County - General. ......... ................ $
County - Open Space
.
County - Added & Omitted
.
Local School District Taxes
.
Total.
=$===========:a:::::==::::::::;:~==~:::::E~==;";':::=========
Ref.
A
- 80-


Exhibit A-14
CURRENT FUND
SCHEDULE OF CHANGES IN VARIOUS ACCOUNTS
PAYABLES & RESERVES
Cash
Cash
Dec. 31, 2014
Receipts
Disbursements
Adjustments
Dec. 31, 2015
Accounts Payable:
Vendor Accounts Payable ................
$
57,838.30
$
(6,250.00)
$
10,121.02
$
61,709.32
Marriage License Filing Fees ...........
,
25.00
$
2,450.00
(1,950.00)
525.00
State Training Fees ........................
5,275.00
18,472.00
(18,178.00)
5,569.00
Subtotal
63,138.30
20,922.00
(26,378.00)
10,121.02
67,803.32
Reserve for:
Codification
of Ordinances ..............
6,389.15
6,389.15
00
Library State Aid ..........................
2,963.00
5,962.00
(2,963.00)
5,962.00
~
FEMAINJDEP
Buyout
170.44
1.32
171.76
Master Plan ................................
1,161.96
1,161.96
TaxAppeals ................................
30,000.00
30,000.00
Sewer Overpayment ......................
7,530.79
7,530.79
Farmers Market ...........................
,
215.00
215.00
Sale of Assets - Cell Tower ...............
1,484,609.22
1,484,609.22
Subtotal
48,430.34
1,490,572.54
(2,963.00)
1,536,039.88
Total. .............................................
$
111,568.64
$
1,511,494.54
$
(29,341.00)
$
10,121.02
$
1,603,843.20
Ref.
A
A-4
A-4
A-11
A


Exhibit - A-15
SCHEDULE
OF LOCAL DISTRICT SCHOOL TAX - DEFERRED
SCHOOL TAXES
Balance - December 31,2014
Deferred School Taxes
A
$
11,160,722.00
Increased by:
Levy, School Year July 1,2015 to
June 30, 2016
A-7
22,886,695.00
34,047,417.00
Decreased by:
School Taxes Requirement
-
Calendar Year Taxes Payable
A-l,A-13
22,643,783.00
Balance - December 31, 2015
Deferred School Taxes
A
$
11,403,634.00
Exhibit - A-16
SCHEDULE
OF DEFERRED
CHARGES
Emergency - Hurricane Sandy
BALANCE
RAISED IN
BALANCE
DEC. 31,2014
CY2015
BUDGET
DEC. 31,2015
$
110,000.00
$
55,000.00
$
55,000.00
240,000.00
80000.00
160000.00
$
350,000.00
$
135,000.00
$
215,000.00
A
A-3
A
Emergency - Hurricane Irene
- 82-


Exhibit
- A-17
SCHEDULE
OF STATE GRANTS
RECEIVABLE
GRANT
FUND
TRANSFERRED
2015 BUDGET
FROM
BALANCE
REVENUE
COLLECTED
GRANTS
BALANCE
DEC. 31,2014
REALIZED
2015
UNAPPROPRIATED
DEC. 31,2015
Body Armor
Replacement
Grant
$
$
2,946.00
$
$
2,946.00
$
Forestry
Grant Match
3,000.00
3,000.00
Middlesex
County
- Info. Assis & Transp. Assist -
Older American
Act of 1965
3,782.00
14,38l.00
14,674.00
3,489.00
Municipal
Alliance
on Alcoholism
and Drug Abuse
17,355.00
11,26l.35
6093.65
Total Federal
and State Grants
Receivable
$
6,782.00
$
34,682.00
$
25,935.35
$
9,039.65
$
6,489.00
Ref.
A
A-18
A-18
A-20
A
ex;
Vl


SCHEDULE
OF DUE FROM CURRENT FUND
GRANT FUND
Balance - December 31, 2014
A
Increased by:
Grants receivable collected
Grants appropriated
- Current Fund budget
Unappropriated
grants collected
$
25,935.35
34,682.00
42,600.83
A-17
A-19
A-20
Decreased by:
Grants revenue - Current Fund budget
Grants expended
34,682.00
49339.61
A-17
A-19
Balance - December 31, 2015
A
- 84-
Exhibit - A-18
$
456,653.77
103,218.18
559,871.95
84,021.61
$
475,850.34


SCHEDULE OF RESERVE FOR STATE GRANTS - APPROPRIATED
GRANT FUND
Exhibit A-19
Page lof2
BALANCE
DEC. 31,2014
TRANSFERRED
FROM
ENCUMBERED
2015 BUDGET
PAID OR
DEC. 31,2014
BY BUDGET
CHARGED
ENCUMBERED
DEC. 31,2015
BALANCE
DEC. 31,2015
Year 2005:
N.J. Hepatitis "B" Grant
$
2,549.00
$
$
$
$
$
2,549.00
Subtotal
2 549.00
2 549.00
Year 2006:
Livable Communities
Grant
24.43
24.43
County of Middlesex - Victor Crowell Park
165,213.98
49,191.19
7,755.80
46,634.35
160,015.02
Subtotal
165:238.41
49 191.19
7755.80
46634.35
160039.45
Year 2008:
County of Middlesex - Mountain View Park
310.22
16,126.05
2,604.00
13,832.27
CXJ
Subtotal
310.22
16 126.05
2:604.00
13:832.27
(J1
Year 2010:
Municipal Alliance Alcohol and Drug Abuse
47.40
47.40
Subtotal
47.40
47.40
Year 2011:
N.J. Clean Communities
Grant
5,607.78
5,607.78
Drunk Driving Enforcement Fund
24,437.55
165.00
2,517.79
22,084.76
Alcohol Education & Rehab
2,385.07
2,385.07
Body Armor Replacement
Fund
3,912.48
3,912.48
Subtotal
36342.88
165.00
2517.79
33990.09
Year 2012:
Body Armor Replacement
Grant - CY
399.98
399.98
Drunk Driving Enforcement
Fund
1,166.14
1,166.14
Haz-Mat Grant
136.44
136.44
Middlesex County - Mountainview
Park
129,726.51
129,726.51
N.J. Alcohol Education & Rehabilitation
- Municipal Court
161.80
161.80
N.J. Clean Communities
Grant
11,284.18
11,284.18
Older Americans Act - Information Assist
279.29
279.29
Subtotal
143 154.34
143 154.34


SCHEDULE OF RESERVE FOR STATE GRANTS - APPROPRIATED
GRANT FUND
ExhibitA-19
Page 2 of2
TRANSFERRED
FROM
BALANCE
ENCUMBERED
2015 BUDGET
PAID OR
ENCUMBERED
BALANCE
DEC. 31,2014
DEC. 31,2014
BY BUDGET
CHARGED
DEC. 31,2015
DEC. 31,2015
Year 2013:
Body Armor Replacement
Grant - CY
1,686.68
1,686.68
Drunk Driving Enforcement Fund
4,699.42
4,699.42
N.J. Alcohol Education & Rehabilitation
- Municipal Court
53.96
53.96
Subtotal
6440.06
6440.06
Year 2014:
Body Armor Replacement
Grant - CY
1,828.93
817.85
1,011.08
Drunk Driving Enforcement
Fund
3,575.92
3,575.92
N.J. Alcohol Education & Rehabilitation
- Municipal Court
52.77
52.77
Forestry Grant Match
3,000.00
3,000.00
N.J. Clean Communities
Grant
23,024.90
1,258.00
21,766.90
(X;
0\
Subtotal
31,482.52
5651.77
25,830.75
Year 2015:
Body Armor Replacement
Grant - CY
2,946.00
2,906.80
39.20
Older Americans Act - Information Assist
14,381.00
14,381.00
Municipal Alliance on Alcoholism
and Drug Abuse
17,355.00
16,429.25
925.75
Subtotal
34682.00
30,810.25
3832.55
39.20
Total Federal and State Grants
$
385,564.83
$
65,482.24
$
34682.00
$
49339.61
$
50466.90
$
385,922.56
Ref.
A
A
A-18
A-18
A
A


Exhibit - A-20
SCHEDULE OF RESERVE FOR STATE GRANTS - UNAPPROPRIATED
GRANT FUND
INCREASED
REALIZED
BALANCE
BY GRANTS
AS
BALANCE
DEC. 31,2014
RECEIVED
REVENUE
DEC. 31,2015
Body Armor Replacement
Grant
$
3,575.00
$
7,511.83
$
2,946.00
$
8,140.83
Clean Communities
Program
23,307.48
28,326.42
51,633.90
Drunk Driving Enforcement
Fund
3,187.57
3,187.57
Municipal Alliance on Alcoholism and Drug Abuse
6,093.65
6,703.65
6,093.65
6,703.65
Municipal Court - DWI
58.93
58.93
$
36,163.70
$
42,600.83
$
9,039.65
$
69,724.88
I
~
Ref.
A
A-18
A-17
A
'1
Exhibit - A-21
SCHEDULE
OF DUE FROM GENERAL CAPITAL FUND - GRANT FUND
Balance - December 31,2014
A
$
23,775.00
Balance - December 31, 2015
A
$
23)75.00


TRUST FUND
- 88-


ANALYSIS OF TRUST ASSESSMENT CASH AND INVESTMENTS
RECEIPTS
BALANCE
ASSESSMENTS
BALANCE
DEC. 31, 2014
AND LIENS
DEC. 31, 2015
Fund Balance
$
5,565.77
$
$
5,565.77
Assessments Receivable
(1,470.00)
(1,470.00)
Due to Current Fund
13,684.88
190.54
13,875.42
Due to General Capital Fund
7 164.08
7164.08
$
24,944.73
$
190.54
$
25,135.27
Ref.
B
B-5
B
00-o
I
( ) Denotes Deficit or Deduction
SCHEDULE OF ASSESSMENT LIENS
TRUST ASSESSMENT FUND
ORD
NO.
IMPROVEMENT
DESCRIPTION
BALANCE
DEC. 31, 2014
BALANCE
DEC. 31, 2015
BALANCE
PLEDGED TO
GENERAL CAPITAL
1106
Curbs and Gutters
$
$
$
1470.00
1,470.00
1,470.00
B
B
Exhibit - B- 2
Exhibit - B-3


Balance - December 31, 2014
Balance - December 31,2015
Balance - December 31, 2014
Increased by
Cash Receipts
Balance - December 31, 2015
SCHEDULE
OF DUE TO GENERAL CAPITAL FUND
ASSESSMENT
TRUST FUND
B
B
SCHEDULE
OF DUE TO CURRENT FUND
ASSESSMENT
TRUST FUND
B
B-2
B
- 90-
Exhibit - B-4
$
7,164.08
$ ===7=,1::::64=.0=8=
Exhibit - B-5
$
13,684.88
190.54
$ =====1::::3=,8=75=.4=2=


TRUST FUNDS
SCHEDULE
OF CASH AND RESERVE ACTIVITY
ExhibitB-6
Page Iof2
Balance
Dec. 31. 2014
..... Cash
Receipts
Disbursements
Adjustments
Balance
Dec. 31. 2015
Assessment Trust:
Assessments
Liens Receivable ..
$
(1,470.00)
$
(1,470.00)
Due to General Capital Fund ...
7,164.08
7,164.08
Due to Current Fund ..
13,684.88
190.54
13,875.42
Fund Balance ..
.................
5,565.77
5,565.77
Total
24,944.73
190.54
25,135.27
Animal Control:
Due Current Fund.
5,527.28
8,092.00
13,619.28
Due From NJ - State License Fees .....
(5.40)
676.80
(671.40)
Animal Control Reserves ..
17,983.45
8,461.20
(990.20)
(8,092.00)
17,362.45
Total
23,505.33
9,138.00
(1,661.60)
30,981.73
Payroll:
Deductions
Payable (Net Change) ..
183,423.14
(61,804.28)
121,618.86
Total
183,423.14
(61,804.28)
121,618.86
Developers' Escrow:
Developer's
Escrow Funds ..
322,097.90
79,101.55
(232,669.25)
168,530.20
Developer's Escrows
Water & Soil
19,462.00
150.00
19,612.00
Total
341,559.90
79.251.55
(232,669.25)
188,142.20
Public Assistance:
Reserve for Public Assistance
................
9,913.62
75.02
(151.15)
9,837.49
Total
9,913.62
75.02
(151.15)
9,837.49
Community
Development
Blk Grant:
Due from Midd. Cty, CDBG ..
(91,057.80)
43,870.69
(48,921.00)
(96,108.11)
Community
Development
Blk Grant:
Year 2006/2007
Reserves
Daisy Park ..
428.20
(428.20)
Community
Development
Blk Grant:
Year 201112012 Reserves
Cook Avenue Repaving
15,295.00
( 15,295.00)
Community
Development
Blk Grant:
Year 201212013 Reserves
Senior Center Improvements
5,394.60
(229.99)
(3,175.00)
1,989.61
Manhole Retrofit
139.00
139.00
Community
Development
Blk Grant:
Year 201312014 Reserves
Senior Center Improvements
..
10,800.00
10,800.00
Lincoln Fire House Doors ....
800.00
800.00
Rescue Squad Generator. ..
2,386.00
2,386.00
Passive Improvements"
2,996.00
(2,519.00)
477.00
Community
Development
Blk Grant:
Year 2014/2015
Reserves
Lincoln Park Improvements
...
13,640.00
(4,095.80)
9,544.20
Senior Nutrition
Project ...
7,550.00
(7,550.00)
Senior Van Driver
7,500.00
(7,500.00)
Code Enforcement ..
7,500.00
(7,500.00)
Senior Center Coordinator
11,075.00
(11,075.00)
Daisy Park Improvements
5,554.00
(2,972.70)
2,581.30
- 91-


TRUST FUNDS
SCHEDULE
OF CASH AND RESERVE ACTIVITY
ExhibitB-6
Page 2 of2
Balance
Dec. 31. 2014
...... Cash ...
Receipts
Disbursements
Adjustments
Balance
Dec. 31. 2015
Community
Development
Blk Grant:
Year 2015/2016
Reserves
Senior Center Improvements
Senior Nutrition Project
Senior Van Driver
Code Enforcement
Senior Center Coordinator
Middlesex
Library Doors
Middlesex
Library AV System
15,346.00
7,500.00
7,500.00
7,500.00
11,075.00
13,500.00
4,970.00
15,346.00
7,500.00
7,500.00
7,500.00
11,075.00
13,500.00
4,970.00
Total
(0.00)
43,870.69
(43,870.69)
Other Trust Funds:
Due from Current Fund
Due from General Capital Fund ..
Reserve for Unemployment
Insurance
.
Miscellaneous
Reserves:
Commodity
Resale Program -
Gasoline
- Borough of Dunellen.
Developers
Escrow Unclaimed
Funds
Drug Alliance Donation
Federal Asset Forfeitures
Municipal
Law Enforcement
Trust
Older Americans
Act. ...
Outside Police Services
.
Police Found Money ...
Parking Offense Adjudication
Act
.
Police Application
Fees
.
Public Defender
Fees ..
Police Communities Education
,.,
"_
Premium on Tax Sale...
.
.
Police Memorial
Fund
Police Donations
.
Police - DARE
.
Police 911 Fund.
Recreation
Fund
.
Recycling Trust
Restitution
Sanitary Sewer
Senior Assisted Transportation
Special Inspection
Street Opening Deposits
Third Party Outside Lien Redemption
Tree Replacement
Fund
UFC Dedicated
Penalties ..
Uniform Fire Safety Penalties
.
IOOthAnniversary
$
(258,157.99)
214,182.62
36,561.00
750.00
5,071.98
8,809.68
6,689.64
10,551.03
161.66
3,008.50
318.85
7,171.50
1,817.40
104,600.00
50.00
2,935.41
1,635.00
19.84
73,488.95
119,646.87
3,885.56
1,380.00
1,195.94
3,847.28
79,791.05
9,025.00
53.86
12,405.53
3,545.77
533,823.50
(933,212.35)
2,824.82
(4,743.69)
99,710.96
(26,651.68)
12,474.42
(750.00)
38.74
486.96
8,051.50
(8,084.50)
132,521.25
(131,904.88)
164.00
8,035.00
(7,500.00)
800,500.00
(85,400.00)
111,913.35
18,939.79
250.00
(103,684.71)
(104,533.62)
$ (399,388.85)
(258,157.99)
212,263.75
109,620.28
12,474.42
5,110.72
9,296.64
6,656.64
11,167.40
161.66
3,172.50
318.85
7,706.50
1,817.40
819,700.00
50.00
2,935.41
1,635.00
19.84
81,717.59
34,053.04
4,135.56
880.00
2,349.94
3,672.28
94,791.05
399,388.85
10,125.00
53.86
12,405.53
2,993.27
Total
1,193,126.14
454,441.93
1,253.00
1,305.24
25,000.00
933,212.35
1,100.00
(500.00)
(99.00)
(1,480.24)
( 10,000.00)
(533,823.50)
Total
$1,568,841.69
(552.50)
2,691,604.88
(1,952,920.67)
B
$ 1.037.788.65
$
2,824,130.68
$(2,293.077.64)
$
License Fees Collected:
2013
2014
Note: R.S. 4:19.11
$
8,821.25
8541.20
.....
there shall be transferred
from such special account to the general
funds of the municipality
any amount then in such special account which
is in excess of the total amount paid into such special account during the
last two fiscal years next preceding. "
$
17362.45
- 92-
B


GENERAL CAPITAL FUND
- 93-


Exhibit - C-2
SCHEDULE
OF GENERAL CAPITAL FUND
CASH AND INVESTMENTS
- TREASURER
Balance - December 31,2014
C
Increased by Receipts:
Grants, Loans and Other Receivables
C- 4
Deferred Charges - Unfunded
C- 6
Various Reserves
C-13
Capital Improvement
Fund
C-14
Decreased by Disbursements:
Improvement
Authorizations
C- 8
Bond Anticipation
Notes
C-17
Balance - December 31,2015
C,C-3
$
1,756,850.22
1,626,912.34
2,878,000.00
999.46
65000.00
4,570,911.80
6,327,762.02
1,142,628.27
2,878,258.00
4,020,886.27
$
223062875.75
- 94-


Exhibit - C- 3
GENERAL CAPITAL FUND
ANALYSIS OF CASH AND INVESTMENTS
BALANCE
BALANCE
DECEMBER
DECEMBER
31 2014
31 2015
Grants Receivable
$ (1,301,219.12)
$
(1,037,251.12)
Due from Assessment
Trust
(7,164.08)
(7,164.08)
Due to Grant Fund
23,775.00
23,775.00
Due to Trust Fund
258,157.99
258,157.99
Improvement
Authorizations
Funded
1,550,331.19
1,732,478.92
Improvement
Authorizations
Expended
(274,420.04)
(112,332.06)
Unexpended
Proceeds of BAN's Issued
615,819.34
Reserve for Encumbrances
665,454.66
543,858.65
Reserve for:
Capital Improvement
Fund
157,959.58
222,959.58
Insurance Refund
4,838.08
4,838.08
To Pay Debt Service
63,317.62
64,317.08
Fund Balance
613 237.71
$
1,756,850.22
$
2,306,875.75
Ref.
C-2
C-2
- 95-


Exhibit - C-4
SCHEDULE
OF VARIOUS
GRANTS,
LOANS AND OTHER
RECEIVABLES
Balance
Balance
Ordinance
December
31,
December
31,
Number
2014
Increases
Decreases
2015
Receivables:
Federal
Highway
- 1999 Rec Trails Mountainview
Greenways
Nature Preserve
1479-99
$
866.25
866.25
$
State ofNJ
DOT - Municipal
Road Program
- Warrenville
Rd.
1528-01
55,787.75
55,787.75
Middlesex
County - Rt. 28 Streetscapes
1582-03
4,840.00
4,840.00
New Jersey Environmental
Infrastructure
Trust
1611-04
404,561.00
263,968.00
140,593.00
State ofNJ
DOT
1643-05
75,489.56
75,489.56
Federal
Homeland
Security
1643-05
24,000.00
24,000.00
Middlesex
County
1643-05
35,966.00
35,966.00
Recycling
Trust
1676-05
2,350.00
2,350.00
State ofNJ
DCA - Livable
Communities
1688-06
l30.00
l30.00
Federal
Homeland
Security
1688-06
8,805.00
8,805.00
\.0
State ofNJ
DOT - Beechwood
Ave.
1715-07
69,476.44
69,476.44
0\
State ofNJ
DOT - Greenbrook
Rd
1736-08
56,250.00
56,250.00
State ofNJ
DOT - Beechwood
Ave.
1772-10
16,361.77
16,361.77
State ofNJ
DOT - Parker Street
1797-11
15,238.34
15,238.34
State ofNJ
OEM
1808-12
140,250.00
140,250.00
Federal
Emergency
Management
Agency
(FEMA)
1808-12
212,741.89
186,444.34
26,297.55
State ofNJ
DOT - Howard Avenue
1818-12
1,441.57
1,441.57
State ofNJ
DOT - Fairview
Avenue
1842-l3
300,000.00
300,000.00
Various Capital
Improvements
(MCIA)
1855-14
125,000.00
125,000.00
State ofNJ
DOT -Marlborough
Avenue
1857-14
300,000.00
300,000.00
Various Capital
Improvements
(MCIA)
1879-15
1,176,500.00
1,176,500.00
$
1,849,555.57
$ 1,176,500.00
$ 1,763,895.90
$
1,262,159.67
Ref.
C
C-8
C-2
C
Cash Transactions
C-2
$ 1,626,912.34
Various Reserves
C-l3
136,983.56
$ 12763:895.90


Exhibit C-5
SCHEDULE
OF DEFERRED
CHARGES
TO FUTURE TAXATION - FUNDED
Serial
Infrastructure
GreenAcres
MCIA
Total
Bonds
Trust
Loans
LoanslLeases
Ref.
Balance - December
31, 2014
C
$
12,824,784.44
$
8,115,000.00
$
901,931.80
$
154,000.45
$
3,653,852.19
Increased by:
BondslLoans
Issued
C-I0
4,024,063.89
2,878,000.00
1,146,063.89
16,848,848.33
10,993,000.00
901,931.80
154,000.45
4,799,916.08
Decreased
by:
Serial BondslLoans
Paid From
C-9,C-I0
Budget Appropriation
C-ll,C-12,C-15
1.3832023.49
6752000.00
90435.86
312863.39
5852724.24
-c
'-l
Balance - December
31, 2015
C
$
1524652824.84
$
1023182000.00
$
811495.94
$
1222137.06
$
422142191.84


SCHEDULE
OF DEFERRED
CHARGES
TO FUTURE TAXATION - UNFUNDED
Exhibit - C-6
ANALYSIS OF BALANCE
- DECEMBER
31,2015
UNEXPENDED
IMPROVEMENT
BALANCE OF
ORD.
BALANCE
2015
BONDS
AUTHORIZATIONS
BALANCE
IMPROV.
NO.
IMPROVEMENT
DESCRIPTION
DEC. 31 2014
FUNDING
ISSUED
CANCELLED
DEC. 31 2015
EXPENDED
AUTHOR.
General Improvements
1503-00
Purchase andlor Installation of Equip. for
Various Departments
$
136.00
$
$
136.00
$
$
$
$
1513-00
Purchase of Senior Citizens Bus
0.08
0.08
1544-01
Improv. to Various Buildings & Facilities
9,253.38
9,253.00
0.38
0.38
1548-01
Reconstr. Of Roads Including Drainage
21,123.19
21,123.00
0.19
1562-02
Various Capital Improvements
8,691.75
8,691.00
0.75
0.75
1571-02
Constr. of Bikeway - Fitzsimmons
Park to
Mountainview
Park
37,085.00
37,085.00
1599-04
Installation
of New Sidewalks, Croosswalks,
Pedestrian Signs at various locations.
3,157.25
3,157.00
0.25
1605-04
Various Capital Improvements
985.00
985.00
1609-04
Resurfacing
of South Ave.
125,151.31
125,151.00
0.31
1626-04
911 Equipment
2,592.00
2,592.00
1643-05
Various Capital Improvements
(NJ DOT $200,000), (NJ DCA $95,000)
(Assistance
to Firefighters
$136,444)
(Federal Homeland
Security $24,000)
(Middlesex
County $97,556)
127,256.00
127,256.00
1646-05
AmendediStreetscape
Improvement
Rt 28
30,400.00
30,400.00
1676-05
Rack Body Truck
1,261.55
1,261.00
0.55
\0
1687-06
Various Capital Improvements
107,838.96
107,838.00
0.96
0.96
00
1708-07
Acquisition
of Street Sweeper
3,349.30
3,349.00
0.30
1772-10
Various Capital Improvements
273,030.00
273,030.00
1797-11
Various Capital Improvements
1,248,566.00
1,248,566.00
1808-12
Acq and Demolition
of Certain Flood Prone Properties
352,991.89
186,444.34
166,547.55
100,148.73
66,398.82
1818-12
Various Capital Improvements
779,125.00
779,125.00
1842-13
Reconstruction
of Fairview Avenue
76,000.00
76,000.00
1857-14
Improvements
to Marlborough
Ave
30,400.00
30,400.00
11,922.99
18,477.01
Local Improvements
1403-97
Constr. of Curbs & Gutters - Cedar, Hooker, etc.
2,180.42
1,922.00
258.42
258.42
1411-97
Constr. of Curbs & Gutters - Emerson & June Way
11,192.23
11,192.00
0.23
0.23
1435-98
Constr. of Curbs & Gutters - Ashland Ave.
9888.56
9888.00
0.56
0.56
$
3261654.87
$
186444.34
$
2878000.00
$
1.68 s
197208.85
$
112332.06
$
84876.79
Ref
C
C-13
C-5
C-8
C


Exhibit - C - 7
SCHEDULE OF INTERFUNDS
GENERAL CAPITAL FUND
ASSESSMENT
TRUST-
GRANT
Ref.
TOTAL
TRUST
OTHER
FUND
Balance - December 31, 2014
Due From
C
$
7,164.08
$
7,164.08
$
$
Due To
C
281,932.99
258,157.99
23,775.00
Balance - December 31,2015
Due From
C
7,164.08
7,164.08
Due To
C
$
2812932.99
$
$
2582157.99
$
232775.00
I
'-0
'-0
I


ExhibitC-8
Page
1 of2
SCHllDl
JLE OF IMPROVEMENI
AUTIIORIZATIONS
2015
RESERVE
FOR
RESERVE
FOR
ORD.
ORDINANCE
BALANCE
- DEC. 31
2014
AUTIIORIZATION
ENCUMBR
PAID OR
ENCUMBR
BALANCE
- DEC. 31
2015
NO.
IMPROVEMENT
DESCRIPTION
DATE
AMOUNT
FUNDED
UNFUNDED
OTHER
12/31114
CHARGED
1213III 5
CANCELLED
!:!.!l'IDlill
UNFUNDED
General
Inmrovements:
1472-99
Reconstruction of Roads, Incl. Drainage
(N3 DOT $120,018.75)
05/22/99
289,000.00
2,531.00
2,531.00
1473-99
Construction of a Park. Inel. Tables, on
Borough
Owned
Property
Located
at Block 224, Lot 29
06122/99
36,000.00
3,220.75
3,220.75
1474-99
Rehabilitation, Reconstruction & Improv.
to Victor Crowell Park
07/13/99
1,055,200.00
1,562.45
1,562.45
1476-99
Environmental
Remedial
Investigation
of
Borough's
Former
Landfill
Site
10/26/99
1,335,570.00
7,993.20
6,567.52
12,563.00
1,997.72
1480-99
Improv. to Recreational Facilities at
Mountainview
Park (NJ Green Acres $209,000)
11/09/99
357,705.00
1,892.25
1,892.25
1484-99
Reconstr.
of Roads & Drainage
(NJ DOT
SI50,000)
12/28/99
322,%4.00
2,831.71
2,831.71
1492-00
Improv,
to Various Bldgs. & Facilities
02122/00
168,000.00
2,119.31
2,119.31
1493-00
Reconstr; of Roads. Incl. Drainage
Where
Required
03/14100
314,163.00
145.35
145.35
1503-00
Purchase
and/or
Installation
of Equip.
for
Various
Departments
09/12100
209,600.00
4,565.32
136.00
4,701.32
1513-00
Purchase
of a Senior
Citizen
Bus
12/19/00
109,600.00
4,332.91
0.08
4,332.99
1524-01
Constr.
Bridge
- East Side of Victor Crowell
Park
05/08/01
103,000.00
8,157.71
8,157.71
1525-01
Reconstr. of Roads Including Drainage
05/29/01
114,000.00
613.05
245.09
367.%
1544-01
Improv. to Various Buildings & Facilities
11120/01
125,000.00
5,147.96
5,147.96
1545-01
Rehab.,
Reccnstr;
And Improvs.
to
Victor Crowell
Park
1lI20/01
250,000.00
5,895.72
5,895.72
1548-01
Reconstr.
Of Roads
Including
Drainage
(NJ DOT $250,000)
12111/01
575,535.00
6,883.12
6,512.75
370.37
1571-02
Constr; of Bikeway - Fitzsimmons Park to Mountainview
Park (NJ DOT Discr; Bike Progr;
S50,000)
10/22/02
164,300.00
15,621.39
9,685.90
5,935.49
1582-03
Various Capital Improvements
(NJ DOT $300,000)
.....
(Downtown
& Bus Improv
Dist $82,120)
05127/03
1,085,000.00
13,527.93
13,527.93
0
1590-03
Preliminary
Planing
Sanitary
Sewer
Improv
0
Project
and Videotaping
Inspection
173,000.00
14,885.27
14,885.27
1599-04
Installation
of New Sidewalks,
Croosswalks,
Pedestrian
Signs
at various
locations.
03/05/04
307,000.00
11,114.87
3,157.25
14,272.12
1600-04
Improv.
to Soccer
Fields
03/05/04
272,000.00
960.22
960.22
1605-04
Various
Capital
Improvements
03/19/04
446,300.00
20,084.41
985.00
2,633.66
16,140.88
2,294.87
1609-04
Resurfacing
of South Ave. (NJDOT
S225,000)
05121/04
456,000.00
97,449.90
97,449.90
1611-04
Improvement
to the Sanitary
Sewer
System
(Infrastructure
Trust
$1,689,655)
07/13/04
1,627,000.00
172,968.47
34,170.99
30,612.18
927.90
175,599.38
1623-04
Streetscape
Improvements
on Rt28
10/23/04
152,000.00
3,029.49
3,029.49
1626-04
911 Equipment
01/07/05
23,000.00
2,163.53
2,163.53
1643-05
Various
Capital
Improvements
(NJ DOT $200,000)
(NJ DCAS95,000)
(Assistance
to Firefighters
$136,444)
(Federal
Homeland
Security
$24,000)
(Middlesex
County
S97,556)
05/10/05
1,305,100.00
7,968.66
127,256.00
3,229.12
131,995.54
1646-05
AmendedlStreetscape
Improvement
Rt 28
05/10/05
32,000.00
1,600.00
30,400.00
32,000.00
1676-05
Rack Body Truck
12/13/05
47,350.00
141.01
141.01
1686-06
Police
Building
4,500,000.00
34,055.14
34,055.14
1687-06
Various
Capital
Improvements
(NJDOT
- $200,000)
10/20/06
1,358,900.00
29,842.13
3,837.59
6,006.62
16,922.39
3,074.57
0.%
1688-06
Various
Equipment
(Assistance
to Firefighters
$157,854)
(Statewide
Livable
Communities
SI5,000)
04111106
182,162.00
1,555.48
1,555.48
1708-07
Acquisition
of Street
Sweeper
02113/07
167,955.00
1,108.23
1,108.23
1715-07
Various
Capital
Improvements
(NJDOT
S240,000)
05/08/07
474,700.00
20,004.65
5,338.00
14,666.65
1718-07
Police Building
08/28/07
500,000.00
6,836.69
6,836.69
1736-08
Various
Capital
Improvements
(NJ DOT - $225,000),
(pedestrian
Bike - S80,000)
06/10/08
892,200.00
5,435.24
10,819.77
2,835.00
13,420.01
1742-08
Fire Truck
09/09/08
550,000.00
4,378.82
4,378.82
1772-10
Various
Capital
Improvements
07/27/10
912,400.00
119,207.90
747.33
8,743.76
111,211.47


ORD.
!'!lL
ExhibitC-8
Page 2 of2
SCHEDln.E
OF IMPROVEMENT
AUTHORIZATIONS
ORDINANCE
BALANCE-DEC.
31 2014
2015
AUTHORIZATION
OTHER
RESERVE FOR
ENCUMBR
12131114
RESERVE FOR
ENCUMBR.
12131115
CANCELLED
BALANCE
-DEC.
31, 2015
PAID OR
CHARGED
IMPROVEMENT
DESCRIPTION
~
UNFUNDED
General
Improvements:
1797-11
1808-12
1818-12
1832-13
1842-13
1855-14
1857-14
1879-15
Various Capital Improvements
Acq and Demolition
of Certain Flood
Prone
Properties
Various
Capital
Improvements
Various Capital Improvements
(MCIA)
Reconstruction
of Fairview Ave (NIDOT-S300,000)
Various Capital Improvements
(MCIA)
Improvements
to Marlborough
Ave (NIDOT - S3oo,Ooo)
Various Capital Improvements
(MCIA)
Fund Balance
Deferred
Charges
to Future Taxation
06114111
03127112
08128112
07126113
08127113
09109114
09109114
1,614,280.00
64,441.15
6,010.00
9,939.24
60,511.91
2,540,000.00
78,574.00
49,374.76
39,532,77
22,017.17
66,398.82
1,116,450.00
62,475.66
907,56
5,480.61
907.56
56,995,05
3,081,700.00
537,172.22
172,707.82
269,326.69
181,923.99
258,629.36
380,000.00
56,288.98
20,712.38
12,938.53
12,973.85
51,088.98
888,325.00
385,414.01
332,802.30
327,860.34
38,746.66
351,609.31
332,000.00
269,600.00
30,400.00
17,630.00
292,053.27
7,099.72
18,477.01
1,176,500.00
1176500.00
83903.43
257114.30
835482.27
1550331.19
724796.17
1 176500.00
665454.66
1,142,628.27
543858.65
613 239.39
1732478.92
84876.79
Ref
C
C
C-4
C
C-2
C
c-i
C
C
c- i
613,237.71
C-6
1.68
613 239.39


SCHEDULE
OF GENERAL
SERIAL BONDS
Exhibit - C-9
MATURITIES
OF BONDS
DATE OF
ORIGINAL
OUTSTANDING
- DEC. 31,2015
INTEREST
BALANCE
BALANCE
ISSUE
ISSUE
ISSUE
DATE
AMOUNT
RATE
DEC. 31, 2014
INCREASE
DECREASE
DEC. 31, 2015
General Improvement
Bonds of2010
02/15/10
$ 9,865,000.00
02/15/16
$ 675,000.00
3.000%
$ 8,115,000.00
$ 675,000.00
$
7,440,000.00
02/15/17
700,000.00
3.000%
02/15/18
700,000.00
3.000%
02/15/19
700,000.00
3.000%
02/15/20
700,000.00
3.200%
02/15/21
775,000.00
3.375%
02/15/22
800,000.00
3.500%
02/15/23
800,000.00
3.500%
02/15124
800,000.00
3.625%
02/15/25
790,000.00
4.000%
General
Obligation
Bonds of2015
07/16/15
2,878,000.00
07/15/16
252,000.00
1.000%
2,878,000.00
2,878,000.00
07/15/17
259,000.00
1.000%
07/15/18
266,000.00
1.500%
07/15/19
273,000.00
2.000%
07/15/20
283,500.00
2.000%
07/15/21
290,500.00
2.000%
07/15/22
301,000.00
2.000%
"""'
07/15/23
308,000.00
2.000%
0
N
07/15/24
318,500.00
2.500%
07/15/25
326,500.00
2.500%
$ 8,115,000.00
$ 2,878,000.00
$ 675,000.00
$ 10,318,000.00
Ref.
C
C-2
C-5
C


SCHEDULE OF CAPITAL LEASES PAYABLE
MIDDLESEX
COUNTY IMPROVEMENT
AUTHORITY
Exhibit - C-I0
PROJECT DESCRIPTION
AMOUNT
OF
LOAN
FEES
INTEREST MATURITIES OF LEASES
PAYABLE
RATE
DATE
AMOUNT
BALANCE
DEC. 31,2014
BALANCE
INCREASED
DECREASED
DEC. 31,2015
Capital Equipment - 2008
$
572,745.83
$
14,522.02
3.750%
4.000%
4.200%
09/15/16
09115117
09115/18
$
62,259.09
$
253,689.11
64,505.80
66,833.58
$
60,090.64
$
193,598.47
Capital Equipment - 2013
2,900,567.38
56,064.13
3.000%
08/15/16
371,735.66
2,540,307.16
360,034.60
2,180,272.56
4.000%
08/15/17
381,537.69
4.000%
08/15/18
396,999.21
4.000%
08/15/19
190,000.00
4.000%
08/15/20
200,000.00
4.000%
08/15/21
205,000.00
4.000%
08115/22
215,000.00
4.000%
08/15/23
220,000.00
....
0
CJ,)
Capital Equipment - 2014 (Lease)
120,994.00
910.59
2.000%
09/15/16
23,524.80
120,994.00
23,302.14
97,691.86
3.000%
09115117
23,995.30
3.000%
09/15/18
24,715.15
3.000%
09/15/19
25,456.61
Capital Equipment - 2014 (Loan)
738,861.92
5,560.58
2.000%
3.000%
3.000%
3.000%
09/15/16
09/15/17
09/15/18
09/15/19
143,656.53
146,529.66
150,925.55
155,453.32
738,861.92
142,296.86
596,565.06
Capital Equipment - 2015
1,146,063.89
6,123.76
1.500%
09/15/16
219,193.63
1,146,063.89
1,146,063.89
3.000%
09/15/17
220,986.67
3.000%
09/15118
227,616.28
4.000%
09115/19
234,444.76
4.000%
09115/20
243,822.55
$
3,653,852.19
$ 1,146,063.89
$
585,724.24
$ 4,214,191.84
Ref.
C
C-5
C-5
C


Exhibit - C-11
SCHEDULE
OF LOANS PAYABLE
NEW JERSEY 1987 GREEN TRUST FUND
BALANCE-
PAYMENT
DATE OF
INTEREST
PRINCIPAL
LOANS
NUMBER
PAYMENT
PAYMENTS
PAYMENTS
PAYABLE
$
32,039.95
34
June 2,2016
$
320.40
$
10,573.89
21,466.06
35
Dec. 2,2016
214.66
10,679.63
10,786.43
36
June 2, 2017
107.86
10786.43
Total Balance Due -
Principal and Interest
$
642.92
$
32,039.95
Payments
Made in 2015
32
June 2, 2015
$
528.75
$
10,365.55
33
Dec. 2, 2015
425.09
10469.20
$
953.84
$
20,834.75
REF.
C-5
Details as to Loan Repayments:
A. Payments made payable to:
Treasurer, State of New Jersey, 1987 Green Trust Fund
B. Payments to be mailed to:
New Jersey Department
of Environmental
Protection
Division of Financial Management
and General Services
Office of Trust Fund Management
Post Office Box 420
Trenton, New Jersey 08625
C. Original Amount of Loan = $328,000.00
-104 -


Exhibit - C-12
SCHEDULE
OF LOANS PAYABLE
NEW JERSEY GREEN TRUST FUND - 1989
BALANCE-
PAYMENT
DATE OF
INTEREST
PRINCIPAL
LOANS
NUMBER
PAYMENT
PAYMENTS
PAYMENTS
PAYABLE
$
90,097.11
25
January 15,2016
$
900.97
$
5,597.17
84,499.94
26
July 15,2016
845.00
5,653.14
78,846.80
27
January 15,2017
788.47
5,709.68
73,137.12
28
July 15,2017
731.37
5,766.77
67,370.35
29
January 15,2018
673.70
5,824.44
61,545.91
30
July 15,2018
615.46
5,882.68
55,663.23
31
January 15,2019
556.63
5,941.51
49,721.72
32
July 15,2019
497.22
6,000.93
43,720.79
33
January 15,2020
437.21
6,060.94
37,659.85
34
July 15,2020
376.60
6,121.55
31,538.30
35
January 15,2021
315.38
6,182.76
25,355.54
36
July 15,2021
253.56
6,244.59
19,110.95
37
January 15, 2022
191.11
6,307.03
12,803.92
38
July 15,2022
128.04
6,370.10
6,433.82
39
January 15, 2023
64.30
6,433.82
0.00
Total Balance Due -
Principal and Interest
$
7,375.02
$
90097.11
Payments Made
Made in 2015
23
January 15,2015
$
1,011.26
$
5,486.89
24
July 15,2015
956.39
5541.75
$
1,967.65
$
11,028.64
REF.
C-5
Details as to Loan Rel2a):,ments:
A. Payments made payable to:
Treasurer, State of New Jersey, 1989 Green Trust Fund
B. Payments to be mailed to:
New Jersey Department
of Environmental
Protection
Division of Financial Management
and General Services
Office of Trust Fund Management
Post Office Box 420
Trenton, New Jersey 08625
C. Original Amount of Loan = $209,000.00
-105 -


Exhibit - C-l3
SCHEDULE OF VARIOUS RESERVES
Ordinance
Balance
Balance
Number
December
31, 2014
Increases
Decreases
December
31,2015
Reserve for:
Cash or Appropriated
Reserves:
Insurance Refund - Landfill (Payment of Bonds)
$
4,838.08
$
4,838.08
Payment of Debt Service
63317.62
999.46
64317.08
Subtotal
68155.70
999.46
69 155.16
Grants, Loans & Other Receivables:
Federal Highway
- 1999 Rec Trails Mountainview
Greenways
Nature Preserve
1479-99
866.25
866.25
State ofNJ DOT - Municipal
Road Program - Warrenville
Rd.
1528-01
55,787.75
55,787.75
Middlesex
County - Rt. 28 Streetscapes
1582-03
4,840.00
4,840.00
New Jersey Environmental
Infrastructure
Trust
1611-04
58,305.00
58,305.00
State ofNJ
DOT - Cedar Ave.
1643-05
75,489.56
75,489.56
Middlesex
County - Cedar Ave.
1643-05
56.00
56.00
......
State ofNJ OEM
1808-12
140,250.00
41,651.37
98,598.63
0
Federal Emergency
Management
Agency (FEMA)
1808-12
212741.89
144792.97
67948.92
0\
Subtotal
548336.45
323427.90
224908.55
$
616492.15
$
999.46
$
323,427.90
$
294,063.71
Ref.
C
C-2
C-6
C


Balance - December 31, 2014
Increased by:
Budget Appropriation
Balance - December 31,2015
Exhibit - C-14
SCHEDULE
OF RESERVE FOR
CAPITAL IMPROVEMENT
FUND
C
$
157,959.58
C-2
65000.00
C
$
222,959.58
-107 -


Exhibit - C-15
SCHEDULE
OF LOANS PAYABLE
NJ ENVIRONMENTAL
INFRASTURCTURE
TRUST LOAN AND FUND LOAN PAYABLE
NET
NET
BALANCE-
PRlNCIPAL
BALANCE-
PAYMENT
DATE OF
PRINCIPAL
INTEREST
SAVINGS
SAVINGS
TOTAL
TRUST LOAN
DATE OF
PAYMENTS
FUND LOAN
NUMBER
COUPON
PAYMENT
PAYMENTS
PAYMENTS
PRINCIPAL
INTEREST
PAYMENTS
PAYABLE
PAYMENT
ONLY
PAYABLE
NJ Infrastructure
Trust Loan:
NJ Infrastructure
Fund Loan:
$
490,000.00
$ 397,970.46
22
02/01116
$
11,578.13
$
1,913.49
$
9,664.64
490,000.00
02/01116
$
7,519.87
390,450.59
23
4.000%
08/01116
$
45,000.00
11,578.13
1,913.26
54,664.87
445,000.00
08/01116
36,746.91
353,703.68
24
02/01117
10,678.13
1,913.04
8,765.09
445,000.00
02/01117
6,935.33
346,768.35
25
5.000%
08/01117
45,000.00
10,678.13
11,220.35
1,904.91
42,552.87
400,000.00
08/01/17
36,162.37
310,605.98
26
02/01/18
9,553.13
1,632.30
7,920.83
400,000.00
02/01118
6,204.66
304,401.32
27
5.000%
08/01/18
50,000.00
9,553.13
11,815.37
1,636.18
46,101.58
350,000.00
08/01/18
38,679.14
265,722.18
28
02/01/19
8,303.13
1,336.46
6,966.67
350,000.00
02/01119
5,392.79
260,329.39
29
5.000%
08/01119
50,000.00
8,303.13
12,345.52
1,331.48
44,626.13
300,000.00
08/01119
37,867.28
222,462.11
30
02/01120
7,053.13
1,027.67
6,025.46
300,000.00
02/01120
4,580.93
217,881.18
31
5.000%
08/01120
55,000.00
7,053.13
13,041.88
1,029.49
47,981.76
245,000.00
08/01120
40,302.57
177,578.61
32
02/01/21
5,678.13
701.36
4,976.77
245,000.00
02/01121
3,687.88
173,890.73
33
5.000%
08/01/21
55,000.00
5,678.13
13,659.36
698.25
46,320.52
190,000.00
08/01/21
39,409.82
134,480.91
34
02/01122
4,303.13
359.84
3,943.29
190,000.00
02/01122
2,794.83
131,686.08
35
5.000%
08/01/22
60,000.00
4,303.13
14,392.04
359.81
49,551.28
130,000.00
08/01/22
41,764.22
89,921.86
"""'
36
02/01/23
2,803.13
2,803.13
130,000.00
02/01/23
1,820.60
88,101.26
0
c»
37
4.250%
08/01123
65,000.00
2,803.13
67,803.13
65,000.00
08/01/23
44,037.62
44,063.64
38
02/01/24
1,421.88
1,421.88
65,000.00
02/01124
923.39
43,140.25
39
4.375%
08/01124
65000.00
1421.88
66421.88
08/01124
43 140.25
Total Due
Principal
$ 490000.00
Principal
Only
$
397970.46
Interest
$ 122,743.84
Savings Credits
$ 76474.52
$ 17757.54
Principal
and Interest
$ 518,511.78
Payments
Made in
2015
20
02/01/15
02/01115
$
8,104.41
21
08/01/15
$
45000.00
08/01115
37331.45
$
45000.00
$
45435.86
REF.
C-5
C-5


Exhibit - C-16
SCHEDULE OF BOND ANTICIPATION NOTES
ORIGINAL
BALANCE
ORD.
IMPROVEMENT
DATE OF
RATE OF
DATE OF
DATE OF
DECEMBER 31,
NO.
DESCRIPTION
ISSUE
INTEREST
ISSUE
MATURITY
2014
DECREASED
1503-00
Purchase andlor Installation of Equip. for
Various Departments
12/18114
1.00%
12118/14
07117115
$
136.00
$
136.00
1544-01
Improv. to Various Buildings & Facilities
12/18/14
1.00%
12/18114
07117115
9,253.00
9,253.00
1548-01
Reconstr. Of Roads Including Drainage
12118114
1.00%
12/18114
07117115
21,123.00
21,123.00
1562-02
Various Capital Improvements
12118/14
1.00%
12/18114
07/17115
8,691.00
8,691.00
1571-02
Constr. of Bikeway - Fitzsimmons Park to
Mountainview Park
12/18114
1.00%
12118/14
07117/15
37,085.00
37,085.00
1599-04
Installation of New Sidewalks, Croosswalks,
Pedestrian Signs at various locations.
12118114
1.00%
12/18114
07117/15
3,157.00
3,157.00
1605-04
Various Capital Improvements
12118114
1.00%
12118114
07117115
985.00
985.00
.....
1609-04
Resurfacing of South Ave.
12/18114
1.00%
12118/14
07/17115
125,151.00
125,151.00
0
1626-04
911 Equipment
12118114
1.00%
12/18114
07/17/15
2,592.00
2,592.00
1.0
1643-05
Various Capital Improvements
12118/14
1.00%
12/18114
07117/15
127,256.00
127,256.00
1646-05
AmendedlStreetscape
Improvement Rt 28
12/18114
1.00%
12118114
07/17115
30,400.00
30,400.00
1676-05
Rack Body Truck
12/18114
1.00%
12/18/14
07/17/15
1,261.00
1,261.00
1687-06
Various Capital Improvements
12118/14
1.00%
12118114
07117115
107,838.00
107,838.00
1708-07
Acquisition of Street Sweeper
12/18114
1.00%
12/18114
07117115
3,349.00
3,349.00
1772-10
Various Capital Improvements
12/18114
1.00%
12118114
07/17115
273,030.00
273,030.00
1797-11
Various Capital Improvements
12118/14
1.00%
12/18114
07/17115
1,248,566.00
1,248,566.00
1818-12
Various Capital Improvements
12118/14
1.00%
12/18114
07117/15
779,125.00
779,125.00
1842-13
Reconstruction
of Fairview Avenue
12118114
1.00%
12/18114
07117/15
76,000.00
76,000.00
1403-97
Constr. of Curbs & Gutters - Cedar, Hooker, etc.
12/18114
1.00%
12118114
07117115
2,180.00
2,180.00
1411-97
Constr. of Curbs & Gutters - Emerson & June Way
12118114
1.00%
12118114
07117115
11,192.00
11,192.00
1435-98
Constr. of Curbs & Gutters - Ashland Ave.
12118/14
1.00%
12/18/14
07/17115
9888.00
9888.00
$
2:878:258.00
$ 2:878:258.00
Ref.
C
C-2


Exhibit - C-17
BONDS AND NOTES AUTHORIZED
BUT NOT ISSUED
ORD.
BALANCE
BONDS
BAN'S
BALANCE
NUMBER
IMPROVEMENT
DESCRIPTION
DEC. 31,2014
ISSUED
REDEEMED
CANCELLED
DEC. 31. 2015
General:
1503-00
Purchase
and/or Installation
of Equip. for
Various Departments
$
$
136.00
$
136.00
$
1513-00
Purchase
of Senior Citizens
Bus
0.08
0.08
1544-01
Improv. to Various Buildings
& Facilities
0.38
9,253.00
9,253.00
0.38
1548-01
Reconstr.
of Roads Including
Drainage
(NJ DOT $250,000)
0.19
21,123.00
21,123.00
0.19
1562-02
Various Capital Improvements
0.75
8,691.00
8,691.00
0.75
1571-02
Constr. of Bikeway
- Fitzsimmons
Park to
Mountainview
Park ($50,000
NJ DOT Discr. Bike Progr.)
37,085.00
37,085.00
1599-04
Installation
of New Sidewalks,
Crosswalks,
Pedestrian
Signs
0.25
3,157.00
3,157.00
0.25
1605-04
Various Capital Improvements
985.00
985.00
1609-04
Resurfacing
of South Ave.
0.31
125,151.00
125,151.00
0.31
1626-04
911 Equipment
2,592.00
2,592.00
1643-05
Various Capital
Improvements
127,256.00
127,256.00
1646-05
Amended/Streetscape
Improvement
on Route 28
30,400.00
30,400.00
1676-05
Rack Body Truck
0.55
1,261.00
1,261.00
0.55
I
1687-06
Various Capital
Improvements
0.96
107,838.00
107,838.00
0.96
""""
""""
1708-07
Acquisition
of Street Sweeper
0.30
3,349.00
3,349.00
0.30
0
1772-10
Various Capital Improvements
273,030.00
273,030.00
1797-11
Various Capital Improvements
1,248,566.00
1,248,566.00
1808-12
Acq and Demolition
of Certain Flood Prone Properties
352,991.89
186,444.34
166,547.55
1818-12
Various Capital Improvements
779,125.00
779,125.00
1842-13
Reconstruction
of Fairview Avenue
76,000.00
76,000.00
1857-14
Improvements
to Marlborough
Ave
30,400.00
30,400.00
Local:
1403-97
Constr. of Curbs & Gutters - Cedar, Hooker, etc.
0.42
1,922.00
2,180.00
258.42
1411-97
Constr. of Curbs & Gutters - Emerson
& June Way
0.23
11,192.00
11,192.00
0.23
1435-98
Constr. of Curbs & Gutters - Ashland
Ave.
0.56
9888.00
9888.00
0.56
$
383396.87
$
2,878,000.00
$
2,878,258.00
$
186446.02
$
197208.85
Ref
C


SWIMMING
POOL UTILITY FUND
-111-


Exhibit - D-5
SCHEDULE
OF SWIMMING
POOL UTILITY CASH AND INVESTMENTS
TREASURER
REF.
OPERATING
FUND
CAPITAL FUND
SNACK BAR ACCOUNT
Balance - December
31,2014
D
$488,512.61
$918,480.03
$3,078.86
Increased by Receipts:
Membership
Fees
D- 3
254,580.07
Miscellaneous
Revenues
D-7
94,938.37
Snack Bar Operation
D-12
29,712.00
Due to Current Fund
D-13
7,378.45
89.65
BAN's
D-19
Swimming
Pool Bonds
D-21
1,235,000.00
Transfer from Snack Bar Account
D-5
19276.43
376,173.32
1,235,000.00
29,801.65
864,685.93
2,153,480.03
32,880.51
I
Decreased
by Disbursements:
""""
Budget Appropriations
D-4
357,260.13
""""
N
Accounts
Payable
D-IO
7,890.58
Appropriation
Reserves
D-ll
1,286.63
Snack Bar Operations
D-12
10,435.57
Due to Current Fund
D-13
7,725.62
83.79
Improvement
Authorizations
D-18
511,800.45
BAN's
D-19
1,235,000.00
Accrued Interest
D-20
12,315.69
Transfer to Operating
Fund
D-5
19,276.43
386478.65
1,746,800.45
29795.79
Balance - December
31, 2015
D
$478,207.28
$406,679.58
$3,084.72


Exhibit - D-6
ANALYSIS OF SWIMMING
POOL CAPITAL
CASH AND INVESTMENTS
BALANCE
BALANCE
DEC. 31,
DEC. 31,
2014
2015
Capital Improvement
Fund
$
7,730.10
$
7,730.10
Improvement
Authorizations
Funded
189,059.00
Improvement
Authorizations
Unfunded
824,531.03
(156,330.00)
Reserve for Encumbrances
Payable
280,001.58
Due (from)/to Swimming Pool Operating Fund
83,599.90
83,599.90
Fund Balance
2,619.00
2,619.00
$
918,480.03
$
406,679.58
Ref.
D
D
-113 -


SCHEDULE
OF MISCELLANEOUS
RECEIPTS
SWIMMING
POOL UTILITY OPERATING FUND
Miscellaneous
(Net of Refunds):
Interest Income
Guest Admissions
Swim Classes Registration
Long Course
Swim Team Membership
Aquacize
Synchro Membership
Syncro Show
Miscellaneous
Income
Subtotal
Food Concession
D-3,D-5
D-3, D-12
-114 -
Exhibit - D-7
YEAR 2015
$
244.24
34,298.00
24,440.00
23,320.00
7,575.00
2,700.00
1,575.00
232.00
554.13
94,938.37
19,276.43
$
114,214.80


Exhibit - D-8
SCHEDULE OF FIXED CAPITAL
SWIMMING POOL UTILITY CAPITAL FUND
BALANCE
BALANCE
DEC. 31,
DEC. 31,
ACCOUNT
2014
2015
Swimming Pool and Grounds
$
234,000.00
$
234,000.00
Improvement - 1987
217,721.56
217,721.56
Improvement - 1991
65,300.00
65,300.00
Improvement - 1997
1492270.00
1492270.00
$
6662291.56
$
6662291.56
REF.
D
D
Exhibit - D-9
SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETE
SWIMMING POOL UTILITY CAPITAL FUND
ORD.NO.
IMPROVEMENT
DESCRIPTION
ORDINANCE
BALANCE
DEC. 31,
2014
BALANCE
DEC. 31,
2015
DATE
AMOUNT
1771-10
Swim Pool Improvements
1852-14
Swim Pool Improvements
07/27110
$ 350,000.00
06/24114
1,300,000.00
$
350,000.00
123002000.00
$
350,000.00
1,3002000.00
$C6502000.OO
$ 126502000.00
D
D
Exhibit - D-l 0
SCHEDULE OF ACCOUNTS PAYABLE
SWIMMING POOL UTILITY FUND
Balance - December 31,2014
D
$
32,971.01
Increased by:
Charges from Approp. Reserves
D-ll
1 715.66
34,686.67
Decreased by:
Cash Disbursements
D-5
7890.58
Balance - December 31, 2015
D
$
26796.09
-115 -


Exhibit - D-ll
SCHEDULE
OF 2014 APPROPRIATION
RESERVES
SWIMMING
POOL UTILITY OPERATING
FUND
BALANCE
DECEMBER
31: 2014
BALANCE
APROPRIATION
RESERVE FOR
AFTER
PAID OR
BALANCED
RESERVES
ENCUMBRANCES
TRANSFERS
CHARGED
LAPSED
Operations:
Salaries and Wages
$
30,848.20
$
$
30,848.20
$
$
30,848.20
Other Expenses
99498.05
2185.38
101:683.43
3:002.29
98:681.14
Total Operations
130:346.25
2185.38
132:531.63
3:002.29
129:529.34
Deferred Charges and Statutory Expenditures
Contribution
to:
Social Security System
285.82
285.82
285.82
Total Deferred Charges and
,_,.
Statutory Expenditures
285.82
285.82
285.82
,_,.
0\
$
130:632.07
$
2 185.38
$
132:817.45
$
3:002.29
$
129:815.16
REF.
D
D
D-l
Cash Disbursements
D-5
$
1,286.63
Accounts Payable
D-lO
1 715.66
$
3:002.29


SCHEDULE
OF RESERVE FOR SNACK BAR OPERATIONS
SWIMMING
POOL UTILITY OPERATING FUND
Increased by:
Receipts from Sales
D-5
Decreased by:
Transfer to Miscellaneous
Revenues
Purchases
19,276.43
10435.57
D-3, D-7
D-5
-117 -
Exhibit - D-12
$
29,712.00
$
29,712.00


Exhibit - D-13
SCHEDULE OF INTERFUNDS
RECEIVABLE/PAYABLE
SWIMMING POOL UTILITY OPERATING FUND
SWIMMING
POOL
CURRENT
REF.
Total
CAPITAL
FUND
Balance - December 31, 2014
D
Due from
$
83,599.90
$
83,599.90
Due to
841.05
$
841.05
Increased by:
Interest earned on investments
D-5
7,378.45
7,378.45
Interest earned on investments - snack bar
D-5
89.65
89.65
91,909.05
83,599.90
8,309.15
Decreased by:
Interest earned on investments
D-5
7,725.62
7,725.62
Interest earned on investments - snack bar
D-5
83.79
83.79
Balance - December 31, 2015
Due from
D
$
83,599.90
$
83,599.90
Due to
D
499.74
$
499.74
-118 -


SCHEDULE OF CAPITAL IMPROVEMENT FUND
SWIMMING POOL UTILITY CAPITAL FUND
Balance - December 31,2014
D
Balance - December 31,2015
D
SCHEDULE OF RESERVE FOR AMORTIZATION
SWIMMING POOL UTILITY CAPITAL FUND
Balance - December 31, 2014
D
Balance - December 31,2015
D
-119 -
Exhibit - D-14
$
7,730.10
$
7730.10
Exhibit - D-15
$ 666,291.56
$ 666,291.56


Exhibit - D-16
SCHEDULE OF DEFERRED RESERVE FOR AMORTIZATION
SWIMMING POOL UTILITY CAPITAL FUND
BALANCE
BALANCE
IMPROVEMENT
DATE OF
DEC. 31,
DEC. 31,
ORD.NO.
DESCRIPTION
ORD.
2014
2015
1771-10
Swim Pool Improvements
07/27110
$
100,000.00
$ 100,000.00
1852-14
Swim Pool Improvements
06/24114
65000.00
65,000.00
$
]65,000.00
$ 165,000.00
D
D
Exhibit - D-17
SCHEDULE OF DUE TO SWIMMING OPERATING FUND
SWIMMING POOL UTILITY CAPITAL FUND
Balance - December 31, 2014
D
$
83,599.90
Balance - December 31, 2015
D
$
83,599.90
-120 -


ORD.
NO.
IMPROVEMENT DESCRIPTION
General Improvements:
1771-10 Swim Pool Improvements
1852-14 Swim Pool Improvements
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
SWIMMING POOL UTILITY CAPITAL FUND
ORDINANCE
DATE
AMOUNT
07/27/10
$
350,000.00
06/24/14
1,300,000.00
BALANCE
DEC 31, 2014
PAID OR
ENCUMB
CHARGED
DEC 31, 2015
BALANCE
DEC 31, 2015
Exhibit - D-18
FUNDED
UNFUNDED
FUNDED
UNFUNDED
$
D
$
93,670.00
980,861.03
$ 511,800.45
$ 280,001.58
$ 189,059.00
$
93,670.00
$
1,074,531.03
$ 511,800.45
$ 280,001.58
$ 189,059.00
$
93,670.00
D
D-5
D
D
D


ORD.
NO.
IMPROVEMENT DESCRIPTION
1852-14
Swimming Pool Improvements
,_.
N
N
I
SCHEDULE OF BOND ANTICIPATION NOTES
DATE OF
ORIGINAL
ISSUE
09/30/14
DATE OF
ISSUE
09/30114
DATE OF
INTEREST
MATURITY
RATE
09/29/15
1.00%
Exhibit - D-19
BALANCE
DEC. 31, 2014
DECREASED
$
1,235,000.00
$
1,235,000.00
$
1,235,000.00
$
1,235,000.00
D
0-5


Exhibit - D-20
SCHEDULE
OF ACCRUED
INTEREST ON BONDS AND NOTES
SWIMMING
POOL UTILITY OPERATING FUND
REF.
Balance - December 31, 2014
D
$
3,087.50
Increased by:
Accrued Interest Charged to:
2015 Budget Appropriations
D-4
13,860.00
Adjustment
to Fund Balance
D-l
5989.17
19,849.17
22,936.67
Decreased by:
Cash Disbursements
D-5
12,315.69
Balance - December 31, 2015
D
$
10,620.98
Analysis of Balance - December 31, 2015:
Principal
Outstanding
Interest
12/31/15
Rate
From
To
Period
Amount
Bonds
$1,235,000.00
Various
07/15/15
12/31/15
5.5 months
10,620.98
-123 -


General Improvement
Bonds 0[2015
SCHEDULE
OF GENERAL
SERIAL BONDS
Exhibit - D-21
DATE OF
ISSUE
07116/15
MATURITIES
OF BONDS
ORIGINAL
OUTSTANDING
- DEC. 31,2015
INTEREST
BALANCE
ISSUE
DATE
AMOUNT
RATE
INCREASE
DEC. 31, 2015
$ 1,235,000.00
07115/16
$
108,000.00
1.000%
$ 1,235,000.00
$
1,235,000.00
07115/17
111,000.00
1.000%
07/15/18
114,000.00
1.500%
07/15/19
117,000.00
2.000%
07115/20
121,500.00
2.000%
07/15/21
124,500.00
2.000%
07115/22
129,000.00
2.000%
07/15/23
132,000.00
2.000%
07/15/24
136,500.00
2.500%
07115/25
141,500.00
2.500%
$ 1,235,000.00
$
1,235,000.00
D-5
D


Exhibit - D-22
BONDS AND NOTES AUTHORIZED
BUT NOT ISSUED
ORD.
BALANCE
BONDS
BAN'S
BALANCE
NUMBER
IMPROVEMENT
DESCRIPTION
DEC. 31, 2014
ISSUED
REDEEMED
DEC. 31, 2015
1771-10
Swim Pool Improvements
$
250,000.00
$
250,000.00
1852-14
Swim Pool Improvements
1,235,000.00
1,235,000.00
$
250,000.00
$ 1,235,000.00
$
1,235,000.00
$
250,000.00
Ref.
D
I.....
~
I


BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
PART IV
SUPPLEMENTARY
DATA
-126 -


BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
COMBINED BALANCE SHEET - ALL FUNDS
FOR THE YEAR ENDING DECEMBER 31. 2015
GENERAL
SWIMMING
CURRENT
TRUST
CAPITAL
POOL
MEMORANDUMTOTAL
ONLY
ASSETS
FUND
FUND
FUND
UTILITY FUND
DEC. 31,2015
DEC. 31,2014
Cash and Investments
$
6,482,445.09
$
1,568,841.69
$
2,306,875.75
$
887,971.58
$
11,246,134.11
$
7,689,982.41
Accounts Receivable:
State & Federal Grants Receivable
6,489.00
96,108.11
1,262,159.67
1,364,756.78
1,947,395.37
Due from State of New Jersey
39,161.05
39,161.05
34,997.70
Taxes, Assessments, Liens &
Utility Charges
956,652.81
1,470.00
958,122.81
1,130,208.84
Interfund Loans
527,619.78
657,546.84
7,164.08
83,599.90
1,275,930.60
849,403.95
Other Accounts Receivable
831,932.92
831,932.92
53,498.07
Property Acquired for Taxes at
Assessed Valuation
1,423,139.00
1,423,139.00
1,423,139.00
Deferred Charges to Revenue of
Succeeding Years
215,000.00
215,000.00
350,000.00
Fixed Capital - Utility
2,316,291.56
2,316,291.56
2,316,291.56
;-->.
Deferred Charges to Future Taxation:
N
General Capital Fund
15,663,033.69
15,663,033.69
16,086,439.31
'1
$
10,482,439.65
$
2,323,966.64
$
19,239,233.19
$
3,287,863.04
$
35,333,502.52
$
31,881,356.21
GENERAL
SWIMMING
LIABILITIES, RESERVES
CURRENT
TRUST
CAPITAL
POOL
MEMORANDUMTOTAL
ONLY
AND FUND BALANCE
FUND
FUND
FUND
UTILITY FUND
DEC. 31,2015
DEC. 312014
Bonds and Notes Payable
$
$
$
10,318,000.00
$
1,235,000.00
$
11,553,000.00
$
12,228,258.00
Loans Payable
5,147,824.84
5,147,824.84
4,709,784.44
Prepaid Taxes, Assessments,
Utility Charges and Licenses
227,834.83
227,834.83
167,198.35
Tax, Assessment, Lien, License and
Utility Charge Overpayments
224,801.87
Appropriation Reserves
1,539,496.48
14,764.51
1,554,260.99
1,591,688.84
Reserve for Encumbrances/
Accounts Payable
270,148.24
121,618.86
543,858.65
325,858.01
1,261,483.76
1,184,939.83
Amts. Pledged to Specific Purposes
1,536,039.88
1,973,981.03
7,730.10
3,517,751.01
1,662,166.96
Escrow Funds
188,142.20
517,023.29
705,165.49
341,559.90
Improvement Authorizations
1,817,355.71
282,729.00
2,100,084.71
3,349,658.39
Interfund Loans
875,239.19
34,658.78
281,932.99
84,099.64
1,275,930.60
849,403.95
Reserve for Amortization of Costs of
Fixed Capital Acquired or Authorized
831,291.56
831,291.56
831,291.56
Reserve for Certain Assets Acquired
or Receivables & Inventories
3,239,719.17
3,239,719.17
2,625,429.12
Fund Balance
2,793,961.86
5565.77
613 237.71
506390.22
3,919,155.56
2,II5,175.00
$
10,482,439.65
$
2,323,966.64
$
19,239,233.19
$
3,287,863.04
$
35,333,502.52
$
31,881,356.21


COMPARATIVE
STATEMENT
OF OPERATIONS
AND
CHANGE
IN FUND BALANCE
- CURRENT
FUND
Revenue
and Other
Year 2015
Year 2014
Income Realized
Amount
%
Amount
%
Fund Balance
Utilized
$
1,019,770.00
2.17
$
996,000.00
2.20
Miscellaneous
- From Other
Than Local Property
Tax Levies
5,124,311.01
10.92
4,101,120.20
9.08
Collection
of Delinquent
Taxes
and Tax Title Liens
826,992.62
1.76
1,029,346.73
2.28
Collection
of Current
Tax Levies
39,966,937.15
85.15
39,061,746.12
86.44
Total Income
46,938,010.78
100.00
45,188,213.05
100.00
Expenditures
Budget Expenditures:
Municipal
Purposes
16,575,358.75
36.98
16,330,784.01
37.11
County Taxes
5,598,711.81
12.49
5,609,423.08
12.75
Local School Taxes
22,643,783.00
50.52
22,058,200.00
50.13
Other Expenditures
7941.23
0.02
6,416.82
0.01
Total Expenditures
44,825,794.79
100.00
44,004,823.91
100.00
Excess in Revenue
2,112,215.99
1,183,389.14
Fund Balance January
1
1,701,515.87
1,514,126.73
3,813,731.86
2,697,515.87
Less:
Utilization
as Anticipated
Revenue
1,019,770.00
996,000.00
Fund Balance December
31
$
2:793,961.86
$
1,701,515.87
-128 -


COMPARATIVE
STATEMENT OF OPERATIONS AND CHANGE
IN FUND BALANCE
- SWIMMING
POOL UTILITY OPERATING FUND
Revenue and Other
Year 2015
Year 2014
Income Realized
Amount
%
Amount
%
Fund Balance Utilized
$
66,224.00
11.72
$
59,690.00
12.89
Membership
Fees
254,580.07
45.07
235,520.01
50.84
Miscellaneous
From Other
Than Membership
Fees
244,029.96
43.20
168,020.00
36.27
Total Income
564,834.03
100.00
463,230.01
100.00
Expenditures
Budget Expenditures:
Operating
394,324.00
98.50
389,390.00
99.21
Other Expenditures
5,989.17
1.50
3,087.50
0.79
Total Expenditures
400,313.17
100.00
392,477.50
100.00
Excess in Revenue
164,520.86
70,752.51
Fund Balance January 1
405,474.36
394,411.85
569,995.22
465,164.36
Less:
Utilization as Anticipated
Revenue
66,224.00
59,690.00
Fund Balance December 31
$
503,771.22
$
405,474.36
-129 -


COMPARATIVE
SCHEDULE
OF TAX RATE INFORMATION *
Tax Rate:
Apportionment
of Tax Rate:
County:
2.343
2.293
2.226
0.094
0.094
0.096
1.044
1.044
1.033
0.086
0.085
0.088
4.615
4.510
4.361
Municipal:
Municipal Library:
County Open Space:
Local School:
Assessed Valuation:
2015
$495,857,040.00
2014
$496,925,279.00
2013
$497,716,343.00
*Per Abstract of Ratables, Middlesex County, NJ
Note: Under the provisions of Chapter 73, L.1976, the County Board of Taxation estimated the
amount of approved Veterans and Senior Citizens Tax Deductions
for 2015 to be $140,250.
COMPARISON
OF TAX LEVIES AND COLLECTION
CURRENTLY
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
Calendar
Cash
of
Year
Tax Levy
Collections
Collection
2015
$40,613,489.16
$39,966,937.15
98.41%
2014
39,907,597.14
39,061,746.12
97.88%
2013
38,856,328.51
37,912,308.96
97.57%
-130 -


DELINQUENT
TAXES AND TAX TITLE LIENS
This 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 three years.
Amount of
Amount of
Percentage
Calendar
Tax Title
Delinquent
Total
of
Year
Liens
Taxes
Delinquent
Tax Levy
2015
$323,406.72
$633,246.09
$956,652.81
2.36%
2014
305,431.67
823,307.17
1,128,738.84
2.83%
2013
419,249.19
894,628.05
1,313,877.24
3.38%
PROPERTY ACQUIRED
BY TAX TITLE LIEN LIQUIDATION
The value of property acquired by liquidation of tax title liens on December 31, on the basis of the last
assessed valuation of such properties, was as follows:
Calendar
Year
Amount
2015
2014
2013
$1,423,139.00
1,423,139.00
1,423,139.00
COMPARATIVE
SCHEDULE
OF FUND BALANCES
Swimming Utility
Operating Fund
Utilized in
Budget of
Calendar
Succeeding
Year
Balance
Year
2015
$2,793,961.86
$1,626,393.06
2014
1,701,515.87
1,019,770.00
2013
1,514,126.73
996,000.00
2012
1,320,410.73
645,000.00
2011
936,117.19
525,000.00
2015
$503,771.22
$153,744.10
2014
405,474.36
66,224.00
2013
394,411.85
59,690.00
2012
309,914.83
43,980.00
2011
271,934.98
43,980.00
Current Fund
-131-


OFFICIALS
IN OFFICE AND SURETY BONDS
The following officials were in office as at December 31, 2015:
NAME
AMOUNT
OF BOND
Ronald S. Dobies
Sean Kaplan
Kevin Dotey
Stephen Greco
John Madden
Jack Mikolajczyk
Robert Schueler
Mayor
President of Council
Councilperson
Councilperson
Councilperson
Councilperson
Councilperson
*
*
*
*
*
*
*
Denise Biancamano
Borough Treasurer/
Chief Financial Officer (from 10/15115)
*
Tonya Hubosky
Tax Collector/Tax
Search Office
Qualified Purchasing Agent
*
Kathleen Anello
Borough Clerk/Dog License Officer/
Assessment
Search Officer
*
Lizandra DeAngelis
Dennis Fackelman
Court Administrator
Municipal Court Judge
*
*
Aravind Aithal, Esq.
James Ayotte
Terry Brundage
Frank Betts
Thomas Reilly
Linda Chismar
Remington
& Vernick
Beverly Weber
Kathleen Bird
Attorney
Construction
Code Official
Health Officer
Tax Assessor (to 05/01/15)
Tax Assessor (from OS/26/15)
Deputy Borough Clerk/
Registrar of Vital Statistics
Engineer
Treasurer, Free Public Library
Secretary, Swim Pool Commission
* All officials and employees handling and collecting Borough Funds are covered by Public
Employees Blanket Bond of $1,000,000.00
under the Joint Insurance Fund.
All of the bonds were examined and were properly executed.
-132 -


BOROUGH
OF MIDDLESEX
MIDDLESEX
COUNTY, NEW JERSEY
PARTV
GENERAL
COMMENTS
AND RECOMMENDATIONS
-133 -


BOROUGH
OF MIDDLESEX
COUNTY OF MIDDLESEX,
NEW JERSEY
YEAR ENDED DECEMBER
31, 2015
GENERAL
COMMENTS
An audit of the financial
accounts
and transactions
of the Borough
of Middlesex,
County of
Middlesex,
New Jersey, for the calendar year ended December
31, 2015, 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 Middlesex,
County of Middlesex,
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.
Cash on hand was
counted
and cash
and investment
balances
were
reconciled
with
independent
certifications
obtained directly from the depositories.
Revenues and receipts were established and verified as to
source and amount insofar as the records permitted.
INTERNAL
CONTROL MATTERS
In planning
and performing
our audit of the financial
statements
of Borough
of Middlesex,
County of Middlesex, New Jersey as of and for the transition year ended December
31, 2015, in
accordance
with auditing
standards
generally
accepted
in the United
States of America,
we
considered the Borough's
internal control over financial reporting (internal control) as a basis for
designing
our auditing
procedures
for the purpose
of expressing
our opinion
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.
Our consideration
of internal
control
was for the limited purpose
described
in the preceding
paragraph
and would not necessarily
identify
all deficiencies
in internal control that might be
significant deficiencies or material weaknesses.
A control deficiency 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
misstatements
on a timely basis.
A significant
deficiency
is a control
deficiency,
or combination
of control
deficiencies,
that
adversely affects the entity's
ability to initiate, authorize, record, process, or report financial data
reliably in accordance
with generally accepted accounting
principles such that there is more than
a remote
likelihood
that a misstatement
of the entity's
financial
statements
that is more than
inconsequential
will not be prevented or detected by the entity's internal control.
-134 -


GENERAL
COMMENTS
INTERNAL
CONTROL MATTERS
(Cont'd.)
A material weakness
is a significant
deficiency,
or combination
of significant
deficiencies,
that
results in more than a remote likelihood that a material misstatement
of the financial statements
will not be prevented or detected by the entity's internal control.
With respect to the reporting of internal control matters, standards require that only a significant
deficiency
and/or a material
weakness
need be reported
in writing to management
and those
charged with governance.
The control deficiencies
reported
are not considered
to be significant
deficiencies
nor material
weaknesses.
In: addition, these control deficiencies
are not required to be reported
in writing,
however, control 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.
As indicated below, we identified certain deficiencies
in internal control that we consider to be
control deficiencies.
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 May 3, 2016 on the financial statements of the Borough of Middlesex.
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.
Control Deficiencies:
2015-1 General Ledger Maintenance
The
Borough's
general
ledger
records
for
its trust
funds
showed
cash
receipts
and
cash
disbursements
posted
to the various
reserve
accounts,
but not posted
to the cash accounts.
Similarly, the general ledger records for its general capital fund showed cash receipts posted to
the various assets and liabilities, but not posted the cash accounts. As a result debits did not equal
credits.
The audit adjustments
in amounts
that are material
to the financial
statements
were
proposed and approved by management
based upon the results of our engagement.
We recommend
that the Borough maintain a complete
General Ledger for both the Trust Fund
and General Capital Fund.
2015-2 Segregation of Duties
Conditions
exist whereby the same person may collect, record and deposit cash receipts in the
following
offices
-
Tax Office,
Finance,
Health
Department/
Vital
Statistics,
Construction-
Zoning/ Planning, Police, Fire Prevention,
Recreation and Borough Clerk.
This condition
is the result of the staffing levels and multi tasks performed
by personnel within
the respective offices.
-135 -


GENERAL
COMMENTS
INTERNAL
CONTROL MATTERS
(Cont'd.)
OTHER MATTERS
Contracts and Agreements
Required
to be Advertised Per N.J.S.A. 40A:II-4
N.J.S.A.
40A:II-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 therefor, 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
$17,500
except
by
contract or agreement."
On September 28,2015,
the Local Public Contracts Law was amended, effective on July 1,2015.
The amendment
addresses
the bid threshold
(Section 7, N.J.S.A.
40A:11-3),
thereby increasing
the amount
from $36,000.00
to $40,000.00
under which a contract
may be awarded
without
public advertising for those municipalities
that have appointed a Qualified Purchasing Agent. The
maximum
bid threshold
remains
at $17,500.00
for those
municipalities
that do not have
a
Qualified Purchasing
Agent. As of December
31, 2015, the Borough has a Qualified Purchasing
Agent.
A review
of the Borough's
purchasing
procedures
indicates
bids were requested
by public
advertising for the following items tested, as disclosed in the official minutes:
Material, Supplies, Equipment,
Service Rentals, Construction
and Repairs:
Community
Pool upgrades; Road Improvements;
Tree RemovallTrimming
and Stump Grinding;
Mill & Overlay Project
State Contracts:
Turnout
Gear; Printer, Scanner and Copier; New Handguns,
Shotguns
and Related Equipment;
Dump Truck; Portable Radios
The
minutes
indicated
the
adoption
of resolutions
authorizing
the
purchase
through
state
approved vendors as required by N.J.A.C. 5:34-1.2.
The minutes
indicate
that resolutions
were adopted
and advertised
authorizing
the awarding
contracts or agreements for "Professional
Services" per N.J.S.A. 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.
-136 -


GENERAL COMMENTS
OTHER MATTERS (Cont'd.)
Contracts and Agreements
Required
to be Advertised Per N.J.S.A. 40A:II-4
(Cont'd.)
A test examination
of expenditures
revealed no individual payments,
contracts or agreements
in
excess of $17,500 or $36,000 as applicable "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 provisions
of
N.J.S.A.40A:II-6.
Any interpretations
as to possible violation ofN.J.S.A.
40A:11-4 and N.J.A.C. 5:30-14 would be
in the province of the municipal solicitor.
Compliance
with P.L. 2005, c.271
The threshold
for Pay-to-Play
is set at $17,500, with no escalator provision. "Pay-to-Play"
laws
cover all contracts (not just professional
services as some believe). Any contract (or aggregation
of purchases
of similar goods or services) that does not meet "fair and open" standards requires
the Borough to obtain the necessary c. 271 documents. The provisions of c. 271 became effective
on January 1,2006.
A non-compliance
would result with the issuance of purchase
orders exceeding
$17,500 during
the
fiscal
period
without
a "fair
and
open"
process,
and
without
obtaining
the
requisite
disclosures.
It is important
to note that the laws and regulations
implementing
"Pay-to-Play"
focus on vendors rather than categories
of goods and services.
While this change may appear
subtle, it greatly expands the monitoring required to assure continuing compliance.
Tests of expenditures
for vendors
with payments
in excess
of $17,500.00
and less than the
applicable
bid threshold
indicated the Borough had the required documentation
for compliance
with P.L. 2005, c.271 for items tested.
Collection ofInterest
on Delinquent Taxes and Assessments
N.J.S. 54:4-67, as amended,
provides the method for authorizing
interest and the maximum rate
to be charged for the non- payment of taxes or assessments
on or before the date when they would
become delinquent.
The governing body, on January
1,2015,
adopted the following resolution authorizing
interest to
be charged on delinquent taxes:
WHEREAS,
R.S. 54:4-67
has been amended
to permit the governing
body to fix the rate of
interest to be charged for the nonpayment
of taxes or assessments
on or before the date when they
would become delinquent
and may provide that no interest shall be charged if payment
of any
installment is made within ten (10) days after the date upon which the same is payable;
-137 -


GENERAL
COMMENTS
OTHER MATTERS (Cont'd.)
Collection ofInterest
on Delinquent Taxes and Assessments
(Cont'd.)
NOW, THEREFORE,
BE IT RESOLVED
that the Borough Council does hereby fix the rate of
interest
at eight percent
(8%)
per annum
on the first One Thousand
Five Hundred
Dollars
($1,500) and at eighteen percent (18%) per annum on any amount in excess of One thousand Five
Hundred Dollars ($1,500) from the date when any tax installment shall be payable and delinquent
until the said installment together with interest is paid provided, however, that if any installments
shall be paid within ten (10) days after the date payable, in that event there shall be no interest
charged.
"In addition, pursuant to NJ.S.A.
54:4-67, there is hereby fixed as a penalty to be charged to a tax
payer with a delinquency
in excess of $10,000 who fails to pay the delinquency
prior to the end
of the calendar year of 6 percent to the amount of delinquency".
The audit of the Collector's
records
on a test basis indicated
that interest
on all delinquent
accounts was calculated in accordance
with the foregoing resolution for items tested.
Delinquent Taxes and Tax Title Liens
The last tax sale was held on October 22,2015.
There were no properties excluded from the sale.
There are no properties payable on an installment basis.
The following
comparison
is made of the number of tax title liens receivable
for the last three
years:
Year
Number of Liens
CY 2015
CY 2014
CY 2013
9
11
12
Investments
The Borough has adopted
a formal cash management
plan policy in compliance
with NJ.S.A.
40A:5-14 of the Local Fiscal Affairs Law, which requires that "each local unit shall adopt a cash
management
plan and shall deposit its fund pursuant to that plan".
Interfund Balances
Interfund Balances appear in the balance sheets of the Borough's
financial statements of the year
ended December 31,2015.
These interfunds, in most cases, resulted from CY 2015 operations and should be cleared by cash
transfer where feasible.
-138 -


GENERAL
COMMENTS
OTHER MATTERS (Cont'd.)
Purchase Order and Encumbrance
System
The
Borough
utilized
a purchase
order
system
for its expenditures
in connection
with
its
budgetary
accounting
encumbrance
system
during
the year
under
review.
Transactions
are
approved based on availability of funds. The utilization of confirming orders was noted.
Payment of Claims
Payments
of claims were examined
on a test basis for the year under review. There were no
exceptions noted for items tested.
Surety Bonds
The "List
of Officials",
included
as part of the Supplementary
Data
section
of this report,
discloses
the status of surety bond coverage's
in effect at December
31, 2015. The minimum
surety bond requirements
for both the Tax Collector and Municipal Court were met for fiscal year
2015.
During July 1998 the Local Finance Board completed a readopting of the Board's
general rules in
the New Jersey Administrative
Code.
Based upon the new provisions
of N.J.A.C.
5:30-8.3 and
8.4, local units are encouraged
to utilize new recommended
amounts
in lieu of the minimum
amounts
in order to provide a higher level of security of public funds.
The Borough's
surety
bond Coverage
meets the new recommended
amounts
as it is covered under the Garden
State
Joint Insurance Fund.
Municipal Court
The financial records maintained
by the Municipal
Court during the period were reviewed.
The
examination
of the general account included review, on a test basis, that deposits were properly
recorded and spread by receipt category and disbursements
were made to the appropriate agencies
on a timely basis.
The bank reconciliations
for both the general and bail accounts were made
available
for review.
The examination
of the bail account's
financial
and supporting
records
maintained by the Municipal Court revealed no exceptions for items tested
The processing
of traffic
and criminal
cases entered
on the State's
on-line
computer
system
revealed no exceptions for items tested.
Condition of Records - Other Officials Collecting Fees
Our reviews
of the records
maintained
for other
officials
collecting
fees were
designed
to
determine that minimum levels of internal controls and accountability
were met, that cash receipts
were deposited or turned over to the Treasurer's
accounts within a 48 hour period as required by
N.J.S.A. 40A:5-15,
and the fees charged were in accordance
with the provisions
of the Borough
Code and that monthly financial reports are being submitted
to the Finance Department
timely.
There were no exceptions noted for items tested.
-139 -


GENERAL
COMMENTS
OTHER MATTERS (Cont'd.)
Condition of Records - Collector of Revenues
The records maintained by the Collector of Revenues were reviewed.
Computerized
cash receipt
records were agreed to manual controls daily and in total monthly with no exceptions
noted for
items tested.
No exceptions were noted for the testing of computerized
real estate tax billings and
billing adjustments for real estate taxes.
Condition of Records - Finance Office
The financial records maintained by the Finance Department
during the period were reviewed.
A
general ledger was maintained
for each fund, and was found to be suitable to serve as the basis
for financial
statement
preparation.
Control accounts
were generally
in proof with supporting
detail. See Control Deficiencies
2015-1 General Ledger Maintenance
as it relates to the Trust
Fund and General Capital Fund.
Sewer Billings
The 2014 billings, which are based on the 2013 readings were to be billed in December of 2014,
however they were not billed until February of 2015. The 2015 billings, which are based on the
2014 readings, were billed in December
of2015.
As a result, the sewer flow charges as reported
in Exhibit
A-9 contain
two billing
years.
The 2014 and 2015 billings
are $709,280.58
and
$906,877.37,
respectively.
Administration
and Accounting
of State & Federal Grants
During CY 2015, the Borough operated programs that were funded in whole or in part by state or
federal grant awards.
As part of the acceptance
of these funds, the Borough is required to make
assurances
to the grantor agency that it will comply, in its general operations
as well as in the
operation of grant funded programs, with various laws and regulations.
In addition, the individual
grant contracts impose specific compliance requirements
for the operations of each program.
The acceptance of grant funds also places additional requirements
upon the Borough with respect
to the Borough's
system of internal controls.
Based upon the matrix of requirements
applicable
to a specific grant, the Borough's
internal controls are required to include systems and policies
and procedures designed to ensure compliance with the many requirements.
We noted that the Finance office made an effort to review prior years'
grant receivable balances
and unexpended
grant reserve balances for proper disposition at December 31, 2015. It was noted
that the Borough continues to carry unexpended
balances
of grant awards that are several years
old.
This condition may have resulted from the decentralized
management
of the various grant
programs.
In the current environment,
it is possible that grant program coordinators
may have
reported expenditures
that were not charged to grant program appropriations.
We suggest that the
Borough continue to monitor prior years'
unexpended
grant reserves and that proper disposition
is made in compliance with the terms and conditions of the grant agreements.
-140 -


GENERAL
COMMENTS
OTHER MATTERS (Cont'd.)
Internal Control Documentation
Statement
on Auditing Standards
115 sets forth requirements
upon the auditee that includes the
documentation
of its internal
controls.
We suggest the Borough
initiate this process
and also
consider utilizing the framework
established
by the Committee
of Sponsoring
Organizations
of
the Treadway Commission
(COSO) for its documentation,
which includes the five components
of
internal
controls,
as
follows:
Control
Environment;
Risk
Assessment;
Control
Activities;
Information
and Communication;
and Monitoring.
In addition,
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.
The Local Finance Board, Department
of Community
Affairs, State of New Jersey, adopted the
following
requirements,
previously
identified as "technical
accounting
directives"
as codified in
the New Jersey Administrative
Code, as follows:
Compliance
with NJ.A.C.
5:30:
N.J.A.C.
5:30 - 5.2 - Encumbrance
Accounting:
This directive
requires the development
and
implementation
of accounting systems, which can reflect the commitment
of funds at the point of
commitment.
The Borough of Middlesex is in compliance with this directive.
N.J.A.C.
5:30 -5.6 - Fixed Asset Accounting:
This directive
requires
the development
and
implementation
of accounting
systems
which assigns
values
to covered
assets and can track
additions, retirements and transfers of inventoried assets.
It is recommended
that
the
Borough
comply
with
N.J.S.A.
5:30
- 5.6 "Accounting
for
Governmental
Fixed Assets" issued by the Division of Local Government
Services, Department
of Community
Affairs, State of New Jersey, in all respects.
It is recommended
the fixed asset inventory be maintained in an accurate and complete manner.
N.J.A.C.
5:30
-
5.7
- General
Ledger
Accounting
System:
This
directive
requires
the
establishment
and maintenance
of a general ledger for, at least, the Current Fund. The Borough is
in compliance
with this directive.
Compliance
with Local Finance Notices
In accordance
with Local Finance Notice No. CFO-10, Uniform Construction
Code, expenditure
records were tested for compliance
with NJ.A.C.
5:23.17(c)2,
and no exceptions
were noted for
those items tested.
The Borough
prepared
and filed a corrective
action plan for the year 2014, pursuant
to Local
Finance Notice No. 92-15 issued by the Division of Local Government
Services, Department
of
Community
Affairs, State of New Jersey.
-141-


RECOMMENDATIONS
We recommend the following:
That the fixed asset inventory
accounting
system be maintained
in an accurate
and complete
manner.
That the Borough
maintains
a complete
General Ledger for both the Trust Fund and General
Capital Fund.
**********
ACKNOWLEDGMENT
During the course of our audit we received the complete cooperation
of the various officials of
the Borough, and the courtesies extended to us were greatly appreciated.
Should
any questions
arise
as to our comments
or recommendations
or should
you desire
assistance in implementing
our recommendations,
please do not hesitate to contact us.
Very truly yours,
HODULIK & MORRISON,
P.A.
Andrew G. Hodulik, CPA, RMA
No. 406
-142 -

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"...y Delinquent Taxes and Tax Title Liens Property Acquired for Tax Title Lien Liquidation Comparative Schedule of Fund Balances Officials in Office and Surety Bonds 127 128 129 130 130 131 131 131 132 PART V - GENERAL COMMENTS AND RECOMMENDATIONS 133 General Comments Recommendations 134 - 141 142 BOROUGH OF MI..."

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2015 Middlesex Borough Municipal Audits Document

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