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Executive Summary
This document comprises the financial statements and supplementary data for the Borough of Middlesex, Middlesex County, New Jersey, for the years ending December 31, 2017 and 2016. Prepared by Hodulik & Morrison, P.A., Certified Public Accountants, it includes an independent auditor's report, reports on internal control, comparative balance sheets, statements of operations, and changes in fund balance for various funds (Current, Trust, General Capital, and Swimming Pool Utility). The audit was conducted in accordance with government auditing standards and requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. The auditor's report includes an adverse opinion on U.S. Generally Accepted Accounting Principles (GAAP) due to the use of regulatory accounting practices.
The report also covers supplementary schedules and data related to current fund activities, trust fund analyses, general capital cash and investments, swimming pool utility finances, and other relevant information. The document outlines revenue, expenditures, and fund balances, offering a comprehensive view of the Borough's financial activities during the specified period. The report, dated September 26, 2018, also mentions compliance with specific laws, regulations, contracts, and grant agreements.
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Document Text
--- Document: 2017 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, 2017 AND 2016
WITH
REPORT OF INDEPENDENT AUDITORS
HODULIK & MORRISON, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
REGISTERED MUNICIPAL ACCOUNTANTS
HIGHLAND PARK, N.J.
PART I
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
TABLE OF CONTENTS
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
FINANCIAL STATEMENTS
A
A- 1
A-2
A-3
B
B- I
C
C- 1
D
D- 1
D-2
D-3
D-4
E
Current Fund - Comparative Balance Sheet - Regulatory Basis - December 3 I,
2017 and2016
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 3 I,
2017 and 2016
Trust Assessment Fund - Statement of Fund Balance - Regulatory Basis
General Capital Fund - Comparative Balance Sheet - Regulatory Basis -
December 31, 2017 and 2016
General Capital Fund - Statement of Fund Balance - Regulatory Basis
Swimming Pool Utility Fund - Comparative Balance Sheet - Regulatory
Basis - December 31, 2017 and 2016
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
Statement of Governmental Fixed Assets
NOTES TO FINANCIAL STATEMENTS
PART II - REQUIRED SUPPLEMENTARY INFORMATION
Sch. 1
Schedule of the District's Share of the Net Pension Liability (PERS)
Sch. 2 Schedule of the District's Contributions (PERS)
Sch. 3 Schedule of the District's Share of the Net Pension Liability (PFRS)
Sch. 4 Schedule of the District's Contributions (PFRS)
Notes to Required Supplementary Pension Information
PAGE(S)
2-4
5-6
7
8
9
10
11 - 19
20
21
22
23
24
25
26
27
28
29
30 - 59
60
61
62
63
64
65
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
TABLE OF CONTENTS
PART III-SUPPLEMENTARY SCHEDULES
Current Fund
A-4
A-5
A-6
A-7
A-8
A-9
A-10
A-11
A-12
A-13
A-14
A-15
A-16
A-17
A-18
A-19
A-20
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. l 976
Schedule of Property Taxes Receivable and Levy Analysis
Schedule ofNonbudget Revenues & Various Accounts Receivables
Schedule of Sewer Flow Charges Receivable
Schedule of lnterfunds Receivable/Payable
Schedule of 2016 Appropriation Reserves
Schedule of Deferred Charges
Schedule of Taxes Payable
Schedule of Changes in Various Accounts Payables & Reserves
Schedule of Local District School Tax - Deferred School Taxes
Schedule of Due from General Capital Fund - Grant Fund
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
Trust Fund
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
General Capital Fund
C-2
C-3
C-4
C-5
C-6
C-7
C-8
C-9
C-10
C-11
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 Interfunds
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
PAGE(S)
66
67
68
69
70
71
72
73
74
75 - 80
81
82
83
84
84
85
86
87 - 88
89
90
91
91
92
92
93 - 95
96
97
98
99
100
101
102
103
104
105
106
107
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
TABLE OF CONTENTS
General Capital Fund (Cont'd.)
C-13
C-14
C-15
C-16
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 Bonds and Notes Authorized but not Issued
Swimming Pool Utility Fund
D-5
D-6
D-7
D-8
D-9
D-IO
D-11
D-12
D-13
D-14
D-15
D-16
D-17
D-18
D-19
D-20
D-21
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 2016 Appropriation Reserves
Schedule of Reserve for Snack Bar Operations
Schedule of lnterfunds 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 Accrued Interest on Bonds and Notes
Schedule of General Serial Bonds
Schedule of Bonds and Notes Authorized but not Issued
PART IV - SUPPLEMENTARY DATA
Combined Balance Sheet - All Funds for the Year Ending December 31, 2017
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
PART V - GENERAL COMMENTS AND RECOMMENDATIONS
General Comments
Recommendations
PAGE(S)
108
109
110
111
112
113
114
115
116
116
116
117
118
119
120
120
121
121
122
123
124
125
126
127
128
129
130
130
13!
131
131
132
133
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)
ANDREW G. HODULIK, CPA, RMA, PSA
ROBERTS. MORRISON, CPA, RMA, PSA
MEMBERS OF:
AMERICAN INSTITUTE OF CPA'$
NEW JERSEY SOCIETY OFCPA'S
REGISTERED MUNICIPAL ACCOUNTANTS OF N.J.
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 and governmental
fixed assets of the Borough of Middlesex, County of Middlesex, New Jersey, as of and for the year ended
December 31, 2017 and 2016, 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, 20 I 7, 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.
- 2 -
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
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, 2017, the changes in its financial position, or, where applicable, its cash flows for the year
then ended.
Opinion on Regulatory Basis of Accounting
In our opinion, the financial statements - regulatory basis referred to above present fairly, in all material
respects, the financial position - regulatory basis of the various funds and governmental fixed assets of the
Borough of Middlesex, County of Middlesex, New Jersey as of December 31, 2017 and 2016 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, 2017, 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 Infonnation
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 Ill - 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 September 26, 2018 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 compliance.
J/.JluLt)( i )!~
I I! A.
HODULIK & MORRISON, P.A.
Certified Public Accountants
Registered Municipal Accountants
---:n~dulik
Registered Municipal Accountant
No. 406
Highland Park, New Jersey
September 26, 2018
- 4 -
HODULIK & MORRISON, P.A.
CERTIFJED PUBLIC ACCOUNTANTS
REGISTERED MUNICIPAL ACCOUNTANTS
PUBLIC SCHOOL ACCOUNT ANTS
1102 RARITAN A VENUE, P.O. BOX 1450
HIGHLAND PARK, NJ 08904
(732) 393-1000
(732) 393-1196 (FAX)
:MEMBERS OF:
AMERICAN INSTITlITE OF CPA'S
NEW JERSEY SOCIETY OF CPA'S
REGISTERED MUNICIPAL ACCOUNTANTS OF NJ.
ANDREW G. HODULIK, CPA, RMA, PSA
ROBERTS. MORR1SON, CPA, RMA, 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,
2017, 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 September 26, 2018. Our
report was 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 and was unmodified based upon that Other
Comprehensive Basis of Accounting.
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. However, material weaknesses may exist
that have not been identified.
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 ofNew 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
September 26, 2018
- 6 -
FINANCIAL STATEMENTS
-7-
Exhibit" A
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
COMPARATIVE BALANCE SHEET - REGULA TORY BASIS
DECEMBER 31 2017 AND DECEMBER 31 2016
BALANCE
BALANCE
LIABILITIES, RESERVES
BALANCE
BALANCE
ASSETS
REF.
DEC. 31 2017
DEC. 31 2016
AND FUND BALANCE
REF.
DEC. 31 20!7
DEC 31 2016
Cash and Investments - Treasurer
A-4 $
6,934,45167 ') 5,959,198 79
Liabilities:
Cash" Change Fund
A-5
50000
500.00
Appropriation Reserves
A-3,A-11 $
652,503 97~$
602,329.13
Due from State of NJ. per Ch 129,
Reserve for Encumbrances
A-3, A-11
218,93641 C
175,159.78
PL 1976
A-6
43,66105
39,661.05
Prepaid Taxes
A-7
905,467 87 / 223,346.50
Various Payables
A-14
81,947 84 / 72,267 04
6,978,612.72
5,999,359 84
Various Reserves
A-14
1,1Jo,on88 I 1,410.on.88
Interfunds Payable
A-10
799034.15 ~0,87858
Receivables With Offsetting Reserves:
498,98548:f
Taxes Receivable
A-7
701,809 59
3,787,96812
3,374,058.91
Tax Title Liens
A-7
360,646.06
334,506 62
Property Acquired for Taxes (At
Reserve for Receivables
Reserve
2,782,504.29 ,
3,702,96248
Assessed Valuation)
A-7
l,423,13900j' 1,423,139.00
Fund Balance
A-1
3 190 644.60 _;
2,705,300.93
Revenue Accounts Receivable
A-8
22,214.39 /
25,223 93
00
Sewer Flow Charges Receivable
A-9
186,778.64'
1,170,920.95
Tota! Regular Fund
9761 117.01
__Jl,W_J_22.32
Interfunds Receivable
A-10
290 740 72 / 4736239
2 782 504.29 _U02,96248
Deferred Charges·
20!2 Emergency - Hurricane Sandy
A-12
80 000.00
80 000.00
Total Regular Fund
9761117.01
9,782.322.32
State and Federal Grant Fund·
State and Federal Grant Fund:
Reserve for State and Federal Grants:
1,4;~:!;~ ;; ~
Grants Receivable
A-17
1,524,198.53 / 1,514,484.89
Appropriated
A-19
1,920,507.50
Due from Current Fund
A-18
377,893 89/ 471,489.73
Unappropriated
A-20
30,420.23
Due from General Capital Fund
A-16
23 775.00·
23 775 00
Reserve for Encumbrances
A-19
421 176.06 /
58 821.89
Total State and Federal Grant Fund
1 925 867.42
2 009 749.62
Total State and Federal Grant Fund
1 925 867.42
2 009 749.62
$
11 686 984.43 $
11 792 071.94
$ 1168698443 $
11 792 071.94
Deferred School Taxes
Balance of Tax
A-15 $
12,136,004.00 /$
11,743,634.00
Deferred
A-15
12 136 004.00
11 743 634.00
School Taxes Payable
$
$
Note: See Notes to Financial Statements
Exhibit A-1
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
CURRENT FUND
COMPARATIVE STATEMENT OF OPERATIONS AND
CHANGE IN FUN D BALANCE - REGULA TORY BASIS
FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016
REVENUE AND OTHER INCOME REALIZED
REF.
YEAR2017
YEAR 2016
Fund Balance Utilized
A-1, A-2 $
1,886,616.88 $
1,6 I 8,212.06
Miscellaneous Revenues Anticipated
A-2
5,455,165.91
5,753,352.85
Receipts from Delinquent Taxes
A-2
688,212.53
636,089.00
Receipts from Current Taxes
A-7
42,363,346.31
40,773,289.51
Non-Budget Revenue
A-2
473,762.95
63,382.52
Other Credits to Income:
Unexpended Balances of Approp. Reserves
A-11
372,009.90
807,610.29
Interfunds Advanced/Returned - Statutory Animal Excess
Due from Animal Control Fund
A-10
6 863.34
7 174.04
Total Revenues
51 245 977.82
49 659 110.27
EXPENDITURES AND OTHER CHARGES
Budget Appropriations:
Operating
Salaries and Wages
Other Expenses
State and Federal Programs Off-Set by Revenue
Municipal Debt Service
Capital Improvements
Deferred Charges and Statutory Expend.-Mun.
County Tax
Local District School Taxes
Interfunds Advanced - Net
Total Expenditures
A-3
6,531,189.00
5,977,338.95
A-3
8,080,390.88
7,955,548.01
A-3
148,671.31
1,675,785.02
A-3
2,301,480.87
2,274,996.44
A-3
80,000.00
65,000.00
A-3
1,701,478.00
1,380,089.30
A-13
5,831,969.88
5,556,152.47
A-13
23,955,459.00
23,225,281.00
A-10
243 378.33
I 9 367.95
48 874 017.27
48 129 559.14
2,371,960.55
1,529,551.13
Excess in Revenue
FUND BALANCE
Balance - January I
Decreased by:
Utilization as Anticipated Revenue
A
2 705 300.93
2 793 961.86
5,077,261.48
4,323,512.99
A-1
l 886 616.88
l 618 212.06
A
$
3 190 644.60/
$
2 705 300.93
- 9 -
Balance - December 31
Note: See Notes to Financial Statements
Exhibit A-2
BOROUGH OF MIDDLESEX
MIDDLE§EX ~OUNTY NEW JBB§J;;;Y
CURRENT FUND
STATE!v1ENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2016
ANTICIPATED
APPROP.
2016
NJ.S.A
Total
EXCESS OR
REF.
BUDGET
40A:4-87
Budget
REALIZED
{DEFICIT)
Fund Balance Anticipated
A-1
$
1 886 616.88 s
$
1 886 616.88
$
1 886 616.88 $
Miscellaneous Revenues
Licenses:
Alcoholic Beverages
13,600.00
13,600.00
13,510.00
(90.00)
Other
34,900.00
34,900.00
20,016.70
(14,88330)
Fees and Permits
77,500.00
77,500.00
91,394.34
13,894.34
Fines and Costs:
Municipal Court
278,000.00
278,000.00
306,294.05
28,294.05
Interest and Costs on Taxes
164,500.00
164,500.00
170,627.27
6,127.27
Interest on Investments and Deposits
111,800.00
111,800.00
74,379.42
(37,420.58)
Television Franchise Fees
96,640.16
96,640.16
96,640.16
Payment in Lieu of Taxes - Prebyterian Homes
58,400.00
58,400.00
58,703.43
303.43
Sewer Rents Receivable
794,000.00
794,000.00
2,001,686.62
1,207,686.62
Host Community Benefit Funds
64,000.00
64,000.00
79,762.19
15,762.19
Consolidated Municipal Property Tax Relief Aid
176,560.00
176,560.00
176,560.00
Energy Receipts Taxes
1,603,254.00
1,603,254.00
1,603,254.00
Dedicated Uniform Construction Code Fees Offset
with Appropriations (N.J.SA 40A:4-36 and N.JAC. 5:23-4.17)
Uniform Construction Code Fees
373,000.00
373,000.00
224,492.00
(148,508 00)
Hazardous Waste Facilities Siting Act (N.J.S.A. 13-15-80)
20,000.00
20,000.00
20,000.00
Public and Private Revenues Offset with Approps:
N.J. Alcohol Education & Rehabilitation - Municipal Court
64.34
64.34
64.34
Body Armor Replacement Grant * CY
2,990.70
2,990.70
2,990.70
Drunk Driving Enforcement Fund
27,358.42
27,358.42
27,358.42
Community Development Block Grant
48,921.00
48,921.00
48,921.00
DMV Inspection Fines
2,635.00
2,635.00
2,635.00
Drunk Driving Enforcement Fund
3,821.85
3,821.85
3,821.85
Middlesex County - Info. Assis & Transp. Assist -
Older American Act of 1965
17,700.00
3,250.00
20,950.00
20,950.00
Municipal Alliance on Alcoholism and Drug Abuse
20,965.00
20,965.00
41,930.00
41,930.00
Other Special Items·
Reserve for Sale of Municipal Assets - Cell Tower
300,000.00
300,000.00
300,000.00
MCUA - Overpayment Credit
69,174.42
69,174.42
69,174.42
Additional Sewer Rents Receivable
100 000.00
100 000.00
(100 000.002
Total Miscellaneous Revenues
A-l,A-8
4 422 914.58
61 085.31
4 483 999.89
5 455 165.91
971 166.02
Receipts from Delinquent Taxes
A-1,A-7
650 000.00
650 000.00
688 212.53
38,212.53
Subtotal General Revenues
6,959 53 l .46 $
61 085.31 $
7 020 616.77
8 029 995.32
1 009 378.55
Amount to be Raised by Taxes for Support of
Municipal Budget:
Local Tax for Municipal Purposes Including
Reserve for Uncollected Taxes
A-7
12,221,626.42
12,221,626.42
12,573,560.43
351,934.01
Minimum Library Tax
A-7
484 987.00
484 987.00
484 987.00
Total Amount to be Raised by Taxes
for Support ofMunicipal Budget
12706613.42
12 706 613.41
13 058 547.43
351 934.01
Budget Totals
19,666,144.88
61,085.31
19,727,230.19
21,088,542.75 $
! 361 312.56
Non-Budget Revenues
A-l,A-4
473 762.95
$
19666144.88 s
61 085.31 $
19727 230.19 $
21562305.70
Ref.
A-3
A-3
A-3
() Denotes Deficit
Note: See Notes to Financial Statements
-10-
BOROUGH OF MIDDLESEX
Exhbit A-3
MIDDLESEX COUNTY NEW JERSEY
Page 1 of9
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2017
EXPENDED
UNEXPENDED
BUDGET AFTER
PAID OR
BALANCE
2017 BUDGET
MODfFICA TION
CHARGED
ENCUMBERED
RESERVED
CANCELLED
OPERATIONS WITHIN "CAPS"
GENERAL GOVERNMENT:
General Administration
Salaries & Wages
s
105,000.00 s
105,000.00 $
103,690.57 $
s
1,309.43
Other Expenses
5,000.00
5,000.00
2,813.26
1,862.72
324.02
Mayor and Council
Salaries and Wages
I2,000.00
12,000.00
11,999.76
0.24
Other Expenses
7,500.00
7,500.00
5,486.72
495.52
1,517.76
Municipal Clerk
Salaries and Wages
173,000.00
173,000.00
172,933.26
66.74
Other Expenses
12,200.00
12,200.00
8,807.62
2,639.66
752.72
Postage for All Departments
,_.
Other Expenses
23,000.00
23,000.00
I6,622.24
566.99
5,810.77
,_.
Printing and Advertising
Other Expenses
7,500.00
7,500.00
6,387.47
l,l\2.53
Financial Administration {Treasury)
Salaries and Wages
95,750.00
95,750.00
95,136 66
613.34
Other Expenses
44,700.00
44,700.00
42,181.40
140.00
2,378.60
Elections
Other Expenses
6,000.00
6,000.00
6,000.00
Annual Audit
Other Expenses
45,000.00
45,000.00
45,000.00
Revenue Administration (Tax Collection)
Salaries and Wages
71,750 00
72,250.00
72,045.00
205.00
Other Expenses
11,235.00
10,735.00
8,608.55
488.58
1,637.87
Tax Assessment Administration
Salaries and Wages
20,000.00
20,000.00
19,999.99
0.01
Other Expenses
3,350.00
3,350.00
3,325.57
24.43
Legal Services
Other Expenses
98,500.00
108,600.00
94,436.53
7,971.00
6,192.47
Engineering Services
Other Expenses
99,500.00
93,400.00
47,016.29
45,140.74
1,242.97
Computer Data Services
Salaries and Wages
84,500.00
84,500.00
84,405.94
94.06
Other Expenses
189,900 00
189,900.00
150,669.44
36,48139
2,749.17
Environmental Legal & Engineering Services and Costs
Other Expenses
[4,500.00
10,500.00
1,404.00
195.00
8,901.00
BOROUGH OF MIDDLESEX
ExhbitA-3
MIDDLESEX COUNTY NEW JERSEY
Page 2 of9
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULA TORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2017
EXPENDED
UNEXPENDED
BUDGET AFTER
PAID OR
BALANCE
2017 BUDGET
MODIFICATION
CHARGED
ENCUMBERED
RESERVED
CANCELLED
GENERAL GOVERNMENT (CONT'D):
LAND USE ADMINISTRATION:
Planning Board
Salaries and Wages
$
4,800 00 s
4,800.00 $
3,200.00 s
$
1,60000 $
Other Expenses
62,750.00
62,750.00
33,541.15
15,041.10
14,167.75
Zoning Board of Adjustment
Salaries and Wages
4,800.00
4,800.00
2,800.00
2,000.00
Other Expenses
6,000.00
6,000.00
4,325.73
1,135.00
539.27
Code Enforcement
Salaries and Wages
63,500.00
63,500.00
57,099.57
6,400.43
Other Expenses
12,250.00
12,250.00
5,914.48
161.47
6,174.05
'""
N
INSURANCE:
Temporary Disability Insurance
27,000.00
27,000.00
25,769.94
1,230.06
Long-Tenn Disability Insurance
18,000.00
18,000.00
16.792.81
1,207.19
Liability Insurance
286,700.00
286,700.00
284,184.47
2,515.53
Workmen's Compensation
148,050.00
148,050.00
148,050.00
Employee Group Insurance
2,393,628.88
2,418,628.88
2,418,444.01
184.87
PUBLIC SAFETY:
Police Department
Salaries and Wages
3,433,000.00
3,394,295.00
3,204,462.42
189,832.58
Other Expenses
148,500.00
148,500.00
126,294.14
12,241.61
9,964.25
Juvenile Conference Committee
Salaries and Wages
2,135.00
2,135.00
2,108.98
26.02
Other Expenses
250.00
250.00
250.00
Office of Emergency Management
Salaries and Wages
4,400.00
4,400.00
4.400.00
Other Expenses
16,900 00
16,900.00
11,828.99
4,430.00
641.01
Aid to Volunteer Ambulance Companies
25,000.00
25,000.00
25,000.00
BOROUGH OF MIDDLESEX
Exhbit A-3
MIDDLESEX COUNTY NEW JERSEY
Page 3 of9
CURRENT FUND
ST ATE ME NT OF EXPENDITURES - REGULA TORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2017
EXPENDED
UNEXPENDED
BUDGET AFTER
PA!DOR
BALANCE
2017 BUDGET
MODIFICATION
CHARGED
ENCUMBERED
RESERVED
CANCELLED
PUBLIC SAFETY (CONT'D):
Fire Department
Other Expenses
$
132,050.00 $
132,050.00 s
97,840.08 $
13,849.74 s
20,360 18 $
Hazardous Waste Facilities Tax -
Other Expenses
2,000.00
2,000.00
2,000.00
Fire Hydrant Fees
Other Expenses
210,000.00
210,000.00
191,518.47
18,481.53
Municipal Prosecutor's Office
Salaries and Wages
24,398.00
24,398.00
24,398.00
Municipal Court
Salaries and Wages
161,000.00
151,000.00
148,151.88
112.50
2,735.62
Other Expenses
12,250.00
12.250.00
7,917.50
200.90
4,131.60
'
>-'
PUBLIC WORKS·
w
'
Road Repairs and Maintenance
Salaries and Wages
706,000.00
732,500.00
732,500.00
Other Expenses
147,875.00
147,875.00
126,188.93
20,915.99
770.08
Shade Tree Commission
Salaries and Wages
2,483 00
2,483.00
2,483.00
Other Expenses
25,000.00
25,000.00
22,590.00
2,410.00
Solid Waste Collection
Salaries and Wages
162,750.00
162,750.00
159,226.66
3,523.34
Garbage and Trash Removal
Salaries and Wages
368,000.00
400,000.00
398,362.83
1,637.17
Other Expenses
48,600.00
48,600.00
47,586.60
459.94
553.46
BOROUGH OF MIDDLESEX
Exhbit A-3
MIDDLESEX COUNTY NEW JERSEY
Page 4 of 9
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2017
EXPENDED
UNEXPENDED
BUDGET AFTER
PAID OR
BALANCE
2017 BUDGET
MODIFICATION
CHARGED
ENCUMBERED
RESERVED
CANCELLED
PUBLIC WORKS (CONT'D]:
Community Services Act
(Condominium Community Costs)
Other Expenses
$
55,500.00 $
55,500.00 $
$
$
55,500.00 $
Building and Grounds
Other Expenses
u 1,000 00
126,000.00
109,798.70
15,332.43
868.87
Rental of Rescue Squad Building
Other Expenses
7,200.00
7,200.00
6,600.00
600.00
HEALTH AND HUMAN SERVICES:
Public Health Services (Board of Health)
'
Salaries and Wages
2,939.00
2,939.00
1,469.50
1,469.50
>--'
Other Expenses
67,800.00
67,800.00
66,692.85
56.50
1,050.65
"'"
Animal Control
Other Expenses
30,000.00
30,000.00
16,500.00
13,500.00
Senior Nutrition - Program Costs
Salaries and Wages
7,200 00
7,200.00
3,442.36
3,75764
Title III Senior Medical Transportation - Program Costs
Salaries and Wages
12,500.00
12,500.00
3,775.36
8,724.64
Title III Infonnation & Assistance - Program Costs
Salaries and Wages
32,000.00
32,000.00
28,842.62
3,157.38
PARKS AND RECREATION:
Recreation Services and Programs
Salaries and Wages
103,500.00
103,500.00
90,261.36
13,238.64
Other Expenses
32,060.00
42,060.00
26,007.46
3,949.41
12,103.13
Parks and Playgrounds
Salaries and Wages
304,000.00
244,000.00
238,379.40
5,620.60
Other Expenses
66,820.00
66,820.00
50,818.23
8,442.46
7,559.31
PAR.KS AND RECREATION (CONT'D}:
Celebration of Public Events
Other Expenses
Senior Citizens Bus Transportation
Other Expenses
Senior Citizens Coordinator
Salaries and Wages
Other Expenses
OTHER COMMON OPERATING FUNCTIONS.
UNCLASSIFIED
,....
(J1
Accumulated Sick Leave Compensation
Salaries and Wages
Housing and Community Advisory Board
Salaries and Wages
Other Expenses
Maintenance of Tax Map
Other Expenses
Beautification Committee
Other Expenses
Multi-Family Solid Waste Collection
Other Expenses
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2017
EXPENDED
BUDGET AFTER
2017BUDGET
MODIFICATION
PAID OR
CHARGED
ENCUMBERED
RESERVED
$
60,000.00 $
4,000.00
51,000.00
6,000.00
60,000.00 $
4,000 00
51,000.00
6,000.00
50,477.64 $
1,009.36
50,958.04
4,302.71
539.09 s
95.00
8,983.27 s
2,895.64
41.96
825.59
871.70
40,000.00
30,000 00
30,000.00
375.00
375.00
375.00
100.00
100.00
100.00
1,150.00
J,150.00
1,150.00
1,000.00
1,000.00
382.50
458.00
159.50
35,000.00
20,000.00
18,837.60
1,162.40
ExhbitA-3
Page 5 of9
UNEXPENDED
BALANCE
CANCELLED
BOROUGH OF MIDDLESEX
Exhbit A-3
MIDDLESEX COUNTY NEW JERSEY
Page 6 of9
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2017
EXPENDED
UNEXPENDED
BUDGET AFTER
PAID OR
BALANCE
2017 BUDGET
MODIFICATJON
CHARGED
ENCUMBERED
RESERVED
CANCELLED
UTILITY EXPENSES AND BULK PURCHASES:
Electricity
s
175,000.00 $
185,000.00 $
152.] 33.23 s
s
32,866.77 $
Street Lighting
171,000.00
151,000.00
124,068.32
26,931.68
Telephone (Excluding Equipment Acquis.)
75,000.00
75,000.00
56,102.58
18,897.42
Water
35,000.00
25,000.00
20,073.22
4,926.78
Gas (Natura! or Propane)
25,000.00
25,000.00
24,047.05
952.95
Fuel Oil (Diesel Fuel)
75,000.00
40,000.00
40.000.00
Gasoline
85,000.00
61,000.00
60,040.00
960.00
Sewer Processing and Disposal
Salaries and Wages
74,000.00
79,000.00
73,589.80
5,410.20
Other Expenses
46,200.00
46,200.00
45,539.20
560.54
l00.26
'
LANDFILL/SOLID WASTE DISPOSAL COSTS
>--'
°'
Landfill Fees
Other Expenses
350,000.00
350,000.00
314,547.75
20,041.58
15,410.67
CODE ENFORCEMENT AND ADMINISTRATION:
Construction Inspector, Plumbing Inspector
and Code Enforcer
Salaries and Wages
151,500.00
151,500.00
146,552.56
4,947.44
Other Expenses
7,200.00
7,200.00
5,116.34
1,049.85
1,033.81
Tota! Operations Within "CAPS"
12,090,998.88
11,991,793.88
11,147,691.65
218,936.41
625,165.82
Contingent
28,000.00
28,000.00
25,019.54
2,980.46
Total Operations Including Contingent Within "CAPS"
12,118,998.88
12,019,793.88
11,172,711.19
218,936.41
628,146.28
DETAIL:
Salaries and Wages
6,278,280.00
6,223,575.00
5,967,050.52
J 12.50
256,411.98
Other Expenses (Including Contingent)
~718.88
5,796,218.88
5,205,660.67
218,823.91
371,734.30
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULA TORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2017
EXPENDED
BUDGET AFTER
2017 BUDGET
MODIFICATION
PAIDOR
CHARGED
ENCUMBERED
RESERVED
DEFERRED CHARGES AND STATUTORY EXPENDITURES
MUNICIPAL WITHIN "CAPS"
ST A TUTOR Y EXPENDITURES
Contribution to
Social Security System (0.AS.I.)
s
270,000.00 s
292,000.00 $
290,605.37 $
$
1,394.63 $
Public Employees' Retirement System of NJ
328,116.00
328,116.00
328,116.00
Police and Firemen's Retirement System of NJ
701,362.00
701,362.00
701,362.00
Pension & Firemen's Widow (NJSA 43: 12-228.1)
5,000.00
5,000.00
5,000.00
Defined Contribution Retirement Program (DCRP)
10.000.00
10,000.00
9,636.56
363.44
Total Deferred Charges and Statutory Expenditures
'
Municipal Within "CAPS"
I 314.478.00
I 336 478.00
I 334,719.93
___
1,758.07
....
'.:J
Total General Appropriations for Municipal
Purposes Within "CAPS"
13 433 476.88
13.356,271.88
12 507 43Ll2
218 936.41 ~904.35
OPERATIONS EXCLUDED FROM "CAPS"
Maintenance of Free Public Library (NJSA 40:54-8)
Other Expenses
484,987.00
484,987.00
484,987.00
Middlesex County Utilities Authority Sewerage Treatment
Contractual
1,219,430.00
1,219,430.00
1,219,429.40
0.60
Piscataway Sewerage Authority - Share of Costs
400,000.00
477,205.00
477,202.18
2.82
Middlesex County Improvement Authority -
County Curbside Collection Program
Other Expenses
117,500.00
117,500.00
97,903.80
19,596.20
Exhbit A-3
Page 7 of9
UNEXPENDED
BALANCE
CANCELLED
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2017
Exhbit A-3
Page 8 of9
BUDGET AFTER
2017 BUDGET
M0DIF1CA TION
EXPENDED
PAfDOR
CHARGED
ENCUMBERED
RESERVED
UNEXPENDED
BALANCE
CANCELLED
OPERATIONS EXCLUDED FROM "CAPS" (CONT'D)
Stormwater Pollution Programs: NJDES/Stonnwater Penni!
Salaries & Wages
286,664.00
286,664.00
286,664.00
Other Expense
6,000.00
6,000.00
3,000.00
3,000.00
PUBLIC AND PRIVATE PROGRAMS
OFFSET BY REVENUES
Body Armor Replacement Grant - CY
$
s
2.990.70 $
2,990.70 $
$
$
Drunk Driving Enforcement Fund
3,821.85
3,821.85
Clean Communities Grant
27,358.42
27.358.42
CDBG
48,921.00
48,921.00
48,921.00
...
OMV Inspection Fines
2,635.00
2,635.00
""
Middlesex County Open Space
Municipal Alliance on Alcohol & Drug Abuse
20,965.00
41,930.00
41,930.00
N.J. Alcohol Education & Rehabilitation - Municipal Court
64.34
64.34
Older Americans Act - Information Assist
17 700.00
20,950.00
20,950.00
Total Operations Excluded from "CAPS"
2 602 167.00
2 740.457.31
2 717 857.69
22 599.62
DETAIL
Salaries and Wages
304,364.00
307,614.00
307,614.00
Other Expenses
2 297 803.00
2 432 843.31
2 410 243.69
22 599.62
CAPITAL IMPROVEMENTS - EXCLUDED FROM "CAPS"
Down Payments on Improvements
Capital Improvement Fund
80 000.00
_SQ,000 00
80,000.00
Total Capital Improvements Exel from "CAPS"
80 000.00
80,000.00
80,000.00
MUNICIPAL DEBT SERVICE - EXCLUDED FROM "CAPS"
Payment of Bond Principal
959,000.00
959,000.00
959,000.00
Interest on Bonds
269,509.00
269,509.00
269,508.76
0.24
Loan Repayment for Principal and Interest
23,891.00
23,891.00
23,890.58
0.42
Loan Repayments for Principal and Interest
MCIA Loan
963,685.00
963,685.00
963,684.90
0.10
Loan Repayments for Principal and Interest
Environmental lnfratructure Loan
94,416.00
94 416.00
85,396.63
9,019.37
Total Municipal Debt Service- Exe! from "CAPS"
2 310,501.00
2,310 501.00
2,301,480.87
9_,_020.13
BOROUGH OF MIDDLESEX
Exhbit A-3
MIDDLESEX COUNTY NEW JERSEY
Page 9 of9
CURRENT FUND
ST A TEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2017
EXPENDED
UNEXPENDED
BUDGET AFTER
PA!DOR
BALANCE
2017 BUDGET
MOD1F1CAT10N
CHARGED
ENCUMBERED
RESERVED
CANCELLED
DEFERRED CHARGES - MUNICIPAL
EXCLUDED FROM "CAPS"
Deferred Charges
Special Emergency Authorization - 5 Years
s
80,000.00 s
80,000.00 $
80,000.00 s
s
s
Deferred Charges to Future Taxation - Unfunded
285,000.00
285,000.00
285,000.00
Total Deferred Charges - Municipal
Excluded from "CAPS"
365,000.00
365,000.00
365,000.00
Total General Appropriations for Municipal
Purposes Excluded from "CAPS"
5 357 668.00
5 495 958.31
5 464,338.56
22 599.62 ___
9,020.13
' ""'
'O
Subtotal General Appropriations
18,791,144.88
18,852,230.19
17,971,769.68
218,936.41
652,503.97
9,020. l3
Reserve for Uncollected Taxes
__ ns,000.00
875 000.00
875,000.00
Total General Appropriations
s 19,666,144.88 $
19727,230.19 s
18.846 769.68 $
218 936.41 s
652,503.97 s
9020.13
REF
A-2
A-2
A-I
A,A-1
A.A-1
A-1
Adopted Budget
A-2
s
19.666.144.88
Approp. by N.J.S.A. 40A:4-87
A-2
61,085.31
s
19.727230.19
Disbursed
A-4
s
17,743,098.37
Reserve for Uncollected Taxes
A-7
875,000.00
Reserve for State Grants
A-JO
148,671.31
Emergency Approp. 40A:4-47
A-12
80,000.00
$
18,846,769.68
Note: See Notes to Financial Statements
Exhibit B
BOROUGH OF MIDDLESEX
MIDDLESEX QOUNTY NEW JERSEY
TRUST FUNDS
COMPARATIVE BALANCE SHEET. REGULATORY BASIS
DECEMBER}! 2016AND2015
BALANCE
BALANCE
LIABILITIES, RESERVES
BALANCE
BALANCE
ASSETS
REF.
DEC. 31 2017
DEC. 31 2016
AND FUND BALANCE
REF
DEC. 312017
DEC 31 2016
Assessment Trust Fund·
25,64232/
$
Assessment Trust Fund:
/
Cash and Investments - Treasurer
B-6 $
25.387.89
Due to Genera! Capital Fund
B-6
$
7,164.08)
7,164.08
Assessment Liens Receivable
B- 3
1,47000/
1,470.00
Due to Current Fund
B-6
14,382.47
14,128.04
Fund Balance
B-1
5 565.77 I
5 565.77
Tota! Assessment Trust Fund
27112.32
26 857.89
Total Assessment Trust Fund
27 112.32
26 857.89
Animal Control Fund·
Animal Control Fund:
4.20/
Cash and Investments - Treasurer
B-6
44,116.06 /
37,795.72
Due to State of NJ
B- 6
Due to Current Fund
8- 6
27 656.66 '/
20,793.32
Reserve for Animal Control Expenditures
8-6
16,455.20 /
17,002.40
Total Animal Control Fund
44 116.06
37 795.72
Total Animal Control Fund
44 116.06
37 795.72
Trust-Other Fund:
Trust-Other Fund:
N
Cash and Investments - Treasurer
B-6
157,49823/ 486,889.90
Reserve for Unemployment Insurance
B-6
207,983.83"/
212,120.77
0
/
893 441.67 /
Due from Current Fund
8-6
421,140,26•',
399,388.85
Reserve for Various Deposits
8- 6
932.315.97
Due from General Capita! Fund
8-6
522 787.01 I
258 157.99
Total Trust-Other Fund
1 101 425.50
____ 1, 144,436.74
Total Trust-Other Fund
l 101 425.50
1.144 436.74
Escrow Trust Fund:
20,062.00~
Escrow Trust Fund:
496,31821/
Developers' Escrow- Water & Soil
8- 6
19,962.00
Cash and Investments - Treasurer
8-6
637,289.@
Developers' Escrow Funds
8- 6
476.256.21,/
61732749
Tota! Escrow Trust Fund
496318.2]
637 289.49
Total Escrow Trust Fund
496318.21
637 289.49
Payroll Fund:
Payroll Fund:
Cash and Investments - Treasurer
8- 6
127,90K39'i
129,491.21
Payroll Deductions Payable
B-6
127,908.39""
129 491.21
Total Payroll Trust Fund
127.908.39
129491.21
Total Payroll Trust Fund
127 908.39
129 491.21
Public Assistance Trust Fund:
9 837.96 /
0
Public Assistance Trust Fund:
9 83796/
Cash and Investments. Treasurer
B-6
9 838.23
Reserve for Public Assistance
B-6
9 838.23
Total Public Assistance Trust Fund
9 837.96
9 838.23
Total Public Assistance Trust Fund
9 837.96
9 83823
Community Devlopement Block Grant Fund:
67 448.91 /
Community Devlopement Block Grant Fund:
Due from Midd. Cty CDBG
B-6
92,76041
Due to Current Fund
8-6
s.aoo.oo-".
12,294.00
Reserve for Comm. Dev. Block Expends.
8- 6
59 248.91/
80,466.41
Total Comm. Develop. Block Grant Fund
67 448.91
__
9:U_§_0.41
Total Comm. Develop. Block Grant Fund
67 448.91
92,76041
$
I 874 167.35 s 2 078 469.69
s
1.874 167.35
$
2 078.469.69
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 2017
Balance - December 31, 2016
B
$ 5,565.77
Balance - December 31, 201 7
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 - REGULA TORY BASIS
DECEMBER 31. 2017 AND 2016
BALANCE
BALANCE
DECEMBER 31,
DECEMBER 31,
ASSETS
REF.
2017
2016
Cash and Investments - Treasurer
C-2
$
- / / $
1,028,015.02
Grants - In - Aid, Loans and Other Receivable
C-4
1,426,497.97 /
1,326,497.97
Interfunds Receivable
C-7
7,164.08 /
7,I64.08
Deferred Charges to Future Taxation:
/
Funded
C-5
l l,645,938.37v / 13,596,684.52
Unfunded
C-6
6,228,722.55'
I 471 727.55
$ 19 308 322.97 $
17 430 089.14
LIABILITIES, RESERVES
AND FUND BALANCE
General Serial Bonds
C-9
8,432,000.00 j 9,391,000.00
Capital Leases Payable - M.C.I.A.
C-10
2,556,267:01 / 3,393,822.13
Loans Payable - N.J. Green Trust Fund - 1987
C-11
10,786.43
Loans Payable - N.J. Green Trust Fund - 1989
C-12
67,370.35 ~
78,846.80
Loans Payable - N.J. Infrastructure
C-15
590,301.01 / 722,229.16
Reserve for Encumbrances Payable
C-8
1,409,753.13 I
455,744.31
Interfunds Payable
C-7
786,987.42'
281,932.99
Improvement Authorizations:
Funded
C-8
1,785,549.58
1,691,145.21
Unfunded
C-8
3,243,660.61
888,043.25
Reserve for:
Capital Improvement Fund
C-14
41,834.58 .
221,939.58
. Grants and Loans Receivable
C-13
324,908.55 (
224,908.55
Insurance Refund
C-13
4,838.08/
4,838.08
To Pay Debt Service
C-13
64,317.08
64,317.08
Fund Balance
C-1
535.57
535.57
$ 19,308 322.97 $
17 430 089.14
Bonds and Notes Authorized but not Issued
C-16
$
6,228,722.55 $=.,;,l.,;4=7=
1 =72=7=.5=5=
Note: See Notes to Financial Statements
- 22 -
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
GENERAL CAPITAL FUND
STATEMENT OF FUND BALANCE - REGULA TORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
Balance - December 3 1, 2016
C
Balance - December 31, 2017
C
Note: See Notes to Financial Statements
- 23-
Exhibit - C-1
$
535.57
$
535.57
ASSETS
Operating Fund:
Cash and Investments - Treasurer
Cash - Snack Bar Fund
Due from Swimming Pool Capital Fund
~
Total Operating Fund
Capital Fund:
Cash and Investments - Treasurer
Fixed Capital
Fixed Capital Authorized and Uncompleted
Total Capital Fund
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
SWIMMING POOL UTILITY FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
DECEMBER 31 2017 AND 2016
BALANCE
BALANCE
LIABILITIES, RESERVES
REF.
DEC. 31 2017
DEC. 31, 2016
AND FUND BALANCE
203,695.18/$
Operating Fund:
D-5
s
280,975.38
Appropriation Reserves
D-5
3,006.7s/ 3,003.47
Reserve for Encumbrances
D-13
160 774.90
160 774.90
Accounts Payable
Due to Current Fund
367,476.83
444,753.75
Accrued Interest on Bonds
367.476.83
444.753.75
Fund Balance
Total Operating Fund
Capital Fund:
Swim Pool Bonds
Improvement Authorizations
Funded
Unfunded
Reserve for Encumbrances Payable
Capital Improvment Fund
Due to Swimming Pool Operating Fund
Reserve for:
Amortization
Deferred Amortization
Fund Balance
Total Capital Fund
$ 2814254.17 $ 2891531.09
(
There were Bonds and Notes Authorized but not Issued at December 31, 2017 and 2016 in the amount of $250,000.00. (Exhibit D-21)
Note: See Notes to Financial Statements
D-5
D-8
D-9
130,485.78/
666,291.56 j
1,650,000.00
2 446 777.34
130,485.78
666,291.56
1 650 000.00
2 446 777.34
Exhibit- D
BALANCE
BALANCE
REF.
DEC. 31 2017
DEC.31 2016
D-4,D-11 $
66,805.18/$
12,677.53
D-4,D-11
6,395.92 /,
6,093.26
D-10
34,235.43/
34,234.50
D-13
76.18
147.03
D-19
9676.56/
10 185.31
117,189.27 / 63,337.63
D-1
250 287.56 ·
38! 416.12
367.476.83
444 753.75
D-20
l,016,000.00
l, 127,000.00
D-18
51651 79/
51,651.79
D-18
93:61000/
93,670.00
D-18
64,039 99/
64,039.99
D-14
7,730.10 / 7,730.10
D-17
160,774.90
160,774.90
D-15
885,291.56::::
774,291.56
D-16
165,000.00 /
165,000.00
D-2
2 619.00
2 619.00
2 446 777.34
2 446 777.34
$ 2,814,254.17 $
2,891,531.09
Exhibit - D-1
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, 2017 AND 2016
REVENUE AND OTHER INCOME
YEAR2017
YEAR2016
Fund Balance Utilized
D-1, D-3
$
155,000.00 $
153,744.10
Fees - Membership
D-3
276,587.50
262,985.00
Miscellaneous
D-3
106,108.19
114,217.89
Other Credits to Income:
U nexpend. Balance of Appropriation Reserves
Lapsed and Reserve for Encumb. Canceled
D-11
13 176.50
14 186.11
Total Revenues
550 872.19
545 133.10
EXPENDITURES
Budget and Emergency Appropiations:
Operating
D-4
$
527 000.75 $ 513 744.10
Total Expenditures
527 000.75
513 744.10
Excess/(Deficit) in Revenues
23,871.44
31,389.00
FUND BALANCE
Balance - January 1
D
381 416.12
503,771.22
405,287.56
535,160.22
Decreased by:
Utilized as Anticipated Revenue
D- 1
155 000.00
153 744.10
Balance - December 31
D
$
250,287.56 $ 381,416.12
Note: See Notes to Financial Statements
- 25 -
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, 2017
Balance - December 31, 2016
D
Balance- December 31, 2017
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 OPERA TING FUND
STATEMENT OF REVENUES - REGULA TORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
2017
EXCESS OR
REF.
BUDGET
REALIZED
{DEFICIT)
Fund Balance
D- 1
$
155,000.00
$
155,000.00
$
Fees - Membership
D-1,D-5
262,250.00
276,587.50
14,337.50
Miscellaneous
D- 1
110 260.00
106 108.19
(4,151.81)
$ 527 510.00
$
537 695.69
$
10 185.69
D-4
D- 1
Analysis of Realized Revenues:
Analysis of Miscellaneous Revenues:
Snack Bar
Miscellaneous Revenues
D-7,D-12
D-7
D- 1
$
9,445.48
96 662.71
$
106,108.19
Note: See Notes to Financial Statements
- 27 -
Operating:
Salaries and Wages
Other Expenses
Debt Service:
Payment of Bond Principal
Interest on Bonds
N
a,
Deferred Charges and Statutory Expenditures:
Statutory Expenditures:
Social Security System (O.A.S.l.)
State Unemployment Insurance
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
SWIMMING POOL UTILITY OPERA TING FUND
STATEMENT OF EXPENDITURES - REGULA TORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
Exhibit - D-4
EXPENDED
UNEXPENDED
2017
BUDGET AFTER
PAID OR
BALANCE
BUDGET
MODIFICATION
CHARGED
ENCUMBERED
RESERVED
CANCELLED
$
194,187.00 $
194,187.00 $
181,603.73 $
$
12,583.27 $
184,500.00
184,500.00
123,882.17
6,395.92
54,221.91
111,000.00
111,000.00
111,000.00
22,223.00
22,223.00
21,713.75
509.25
13,600.00
2,000.00
13,600.00
13,600.00
2,000.00
2 000.00
sn,10.00 $
453 799.65 $
6 395.92 $
66805.18 $
509.25
D-1,D-5
D, D-1
D, D-1
$
432,085.90
21 713.75
$
453,799.65
Total Swimming Pool Utility Appropriations
$
527 510.00 $
-- , "
Ref.
D- 3
Cash Disbursements
Accrued Interest Payable
D-5
D-19
Note: See Notes to Financial Statements
Exhibit - E
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
STATEMENT OF GOVERNMENTAL FIXED ASSETS
COMPARATIVE BALANCE SHEET- REGULATORY BASIS
DECEMBER 31, 2017 AND 2016
BALANCE
DEC 31, 2017
BALANCE
DEC 31, 2016
General Fixed Assets:
Land
$
5,864,700.00
$ 5,864,700.00
Buildings
6,533,000.00
6,533,000.00
Machinery and Equipment
9 371 724.00
8 943 668.00
Total Governmental Fixed Assets
$ 21 769 424.00
$21,341,368.00
Investment in Governmental Fixed Assets
$ 21 769 424.00
$ 21,341,368.00
Note: See Notes to Financial Statements
- 29 -
Note 1:
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
NOTES TO FINANCIAL STATEMENTS -REGULATORY BASIS
YEARS ENDED DECEMBER 31, 2017 AND 2016
FORM OF GOVERNMENT
The Borough of Middlesex operates under the legislative Borough ofN.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 aonual 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 aod 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 aod 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
traosactions of the following funds and accounts are also reported within the Trust Fund:
Trust Assessment Fund
Animal Control Trust Fund
Unemployment Compensation lnsurance 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.
- 30-
Note 2:
NOTES TO FINANCIAL STATEMENTS
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D):
Description of Funds (Cont'd.)
B.
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 (GASB) 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 goverrunental 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.
- 31 -
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. G AAP 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.
- 32 -
NOTES TO FINANCIAL ST A TEMENTS
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. Pub lie 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.
- 33-
NOTES TO FINANCIAL STATEMENTS
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
C.
Basis of Accounting
GASB issued Statement No. 80, "Blending Requirements for Certain Component Units-an
amendment ofGASB Statement No. 14" in January 2016. The objective of this Statement is to improve
financial reporting by clarifying the financial statement presentation requirements for certain
component units. This Statement amends the blending requirements established in paragraph 53 of
Statement No. 14, The Financial Reporting Entity, as amended.
GASB issued Statement No. 81, "Irrevocable Split-Interest Agreements" in March 2016. The objective
of this Statement is to improve accounting and financial reporting for irrevocable split-interest
agreements by providing recognition and measurement guidance for situations in which a government
is a beneficiary of the agreement.
GASB issued Statement No. 82, "Pension Issues-an amendment of GASB Statements No. 67, No. 68,
and No. 73" in March 2016. The objective of this Statement is to address certain issues that have been
raised with respect to Statements No. 67, Financial Reporting for Pension Plans, No. 68, Accounting
and Financial Reporting for Pensions, and 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 ofGASB Statements 67 and 68.
GASB issued Statement No. 83, "Certain Asset Retirement Obligations" in November 2016. This
Statement addresses accounting and financial reporting for certain asset retirement obligations (AROs).
An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A
government that has legal obligations to perform future asset retirement activities related to its tangible
capital assets should recognize a liability based on the guidance in this Statement.
GASB issued Statement No. 84, "Fiduciary Activities" in January 2017. This Statement establishes
criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria
generally is on (I) whether a government is controlling the assets of the fiduciary activity and (2) the
beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify
fiduciary component units and postemployment benefit arrangements that are fiduciary activities. The
requirements of this Statement are effective for reporting periods beginning after December 15, 2018.
GASB issued Statement No. 85, "Omnibus 2017'' in March 2017. The objective of this Statement is to
address practice issues that have been identified during implementation and application of certain
GASB Statements. This Statement addresses a variety of topics including issues related to blending
component units, goodwill, fair value measurement and application, and postemployment benefits
(pensions and other postemployment benefits [OPEB]). The requirements of this Statement are
effective for reporting periods beginning after June 15, 2017.
GASB issued Statement No. 86, "Certain Debt Extinguishment Issues" in May 2017. The primary
objective of this Statement is to improve consistency in accounting and financial reporting for in-
substance defeasance of debt by providing guidance for transactions in which cash and other monetary
assets acquired with only existing resources-resources other than the proceeds of refunding debt-are
placed in an irrevocable trust for the sole purpose of extinguishing debt. The requirements of this
Statement are effective for reporting periods beginning after June 15, 2017.
- 34-
NOTES TO FINANCIAL ST A TEMENTS
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
C.
Basis of Accounting (Cont'd.)
GASB issued Statement No. 87, "Leases" in June 2017. The objective of this Statement is to better
meet the information needs of financial statement users by improving accounting and financial
reporting for leases by governments. This Statement increases the usefulness of governments' financial
statements by requiring recognition of certain lease assets and liabilities for leases that previously were
classified as operating leases and recognized as inflows of resources or outflows of resources based on
the payment provisions of the contract. The requirements of this Statement are effective for reporting
periods beginning after December 15, 2019.
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 2016
financial statements to conform with classifications used in fiscal year 2017.
- 35-
NOTES TO FINANCIAL STATEMENTS
Note 3:
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:
A.
Summary of Municipal Debt for Capital Projects
2017
2016
Issued:
General:
Bonds and Notes
$
8,432,000.00
$
9,391,000.00
Green Acres Loan
67,370.35
89,633.23
M.C.l.A. Capital Leases
2,556,267.01
3,393,822.13
NJ Environmental Infrastructure Loans
590,301.01
722,229.16
Swim Pool Utility
Bonds and Notes
1,016 000.00
1 127 000.00
Net Issued
12 661 938.37
14 723 684.52
Authorized But Not Issued:
General:
Bonds and Notes
6,228,722.55
1,471,727.55
Swim Pool Utility
Bonds and Notes
250 000.00
250,000.00
Total Authorized But
Not Issued
6 478 722.55
1,721 727.55
Net Bonds and Notes Issued and
Authorized but not Issued
$
19,140 660.92
$
16 445,412.07
- 36-
NOTES TO FINANCIAL STATEMENTS
Note 3: DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION (CONT'D.)
A.
Summary of Municipal Debt for Capital Projects {Cont'd.)
Summarized below are the Borough's individual bond and loan issues which were outstanding
at December 31, 2017 and 2016:
2017
2016
General Debt:
$9,865,000, General Improvement Bonds
of 2010, due in annual installments
of$400,000 to $800,000 through Feb. 1, 2025,
interest at 3.00% to 4.00%.
$
6,065,000.00
$
6,765,000.00
$2,878,000, General Improvement Bonds
of 2015, due in annual installments
of$252,000 to $326,500 through July 15, 2025,
interest at 1.00% to 2.50%.
2 367 000.00
2 626 000.00
Subtotal - Serial Bond Debt and BAN's for Capital Projects
Outstanding December 31
8 432 000.00
9 391 000.00
Loans Outstanding:
Green Acres Loans
67,370.35
89,633.23
NJ Environmental Infrastructure Loans
590,301.01
722,229.16
MCIA Capital Equipment Loan - 2008
66,833.58
131,339.38
MCIA Capital Equipment Loan - 2013
1,426,999.21
1,808,536.90
MCIA Capital Equipment Lease - 2014
50,171.76
74,167.06
MCIA Capital Equipment Loan - 2014
306,378.87
452,908.53
MCIA Capital Equipment Lease - 2015
705 883.59
926 870.26
Subtotal - Loans Outstanding
3 213 938.37
4 205 684.52
Subtotal General Debt
11 645 938.37
13 596 684.52
Swimming Pool Utility Debt:
$1,235,000, General Improvement Bonds
of 2015, due in annual installments
of$108,000 to $141,500 through July 15, 2025,
interest at 1.00% to 2.50%.
l 016 000.00
1 127 000.00
Total Outstanding Debt
$
12 661 938.37
$
14 723 684.52
- 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
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
$2,265,000.00
1,266,000.00
18 174,660.92
$2,265,000.00
1,266,000.00
64 317.08
$18110343.84
$21,705 660.92
$3,595,317.08
$18110343.84
Net Debt $18,110,343.84 Divided by Equalized Valuation Basis per N.J.S.A. 40A:2-2 as
amended
$1,447,436,931.67 =
1.251%
Gross Debt
Deductions
Net Debt
Local School District Debt
Swimming Pool Utility Debt
General Debt
$2,745,000.00
1,377,000.00
15 068 412.07
$2,745,000.00
1,377,000.00
64,317.08
$15,004 094.99
$19 190 412.07
$4186317.08
$15 004 094.99
Net Debt $15,004,094.99 Divided by Equalized Valuation Basis perN.J.S.A. 40A:2-2 as
amended
$1,420,388,588.67 =
1.056%
The Borough's Borrowing Power Under N.J .S.A. 40A:2-6 as Amended, at December 31,was as follows:
3 1/2% of Equalized Valuation Basis Municipal
Net Debt
$50,660,292.61
18110343.84
$49,713,600.60
15 004 094.99
Remaining Borrowing Power
$32,549 948.77
$34,709 505 .61
- 38 -
NOTES TO FINANCIAL STATEMENTS
Note 3 DEBT, DEBT SERVICE AND STATUTORY DEBT CONDlTION (CONT'D.)
B.
Summary of Statutory Debt Condition - Annual Debt Statement
Calculation of"Self-Liquidating Purpose"
Swimming Pool UtiliD: Per N.J.S.A. 40A: 2-45
2017
2016
Cash Receipts From Fees, Rents or
Other Charges for the year
$ 537,845.69
$
530,946.99
Deductions:
Operating and Maintenance Costs
394 287.00
382,942.00
Excess in Revenue
$
143 558.69
$
148 004.99
C.
Schedule of General Capital Annual Debt Service for Principal and Interest for the
Bonded Debt Issued and Outstanding at December 31, 2017
Calendar
General
Year
Principal
Interest
Total
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
I 116 500.00
23 856.45
1 140 356.45
Total
$ 8 432 000.00
$ 1 138 390.83
$ 9 570 390.83
C.
Schedule of Swim Pool Utility Annual Debt Service for Principal and Interest for the
Bonded Debt Issued and Outstanding at December 31, 2017
Calendar
Swim Pool
Year
Principal
Interest
Total
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
3 643.55
145 143.55
Total
$ 1 016 000.00
$
104 481.05
$ 1 120 481.05
- 39-
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 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-l et seq. the Joan principal in the amount of$67,370.35 and $78,846.80 at December 31, 2017
and 2016 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
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
$895,000
Sept. 1
2.110%- 5.160%
Mar. 1 & Sept. I
19
Sept. I, 2024
Oct. 15, 2004
Nov. 4, 2004
$844,827.50
Feb l & Aug. 1
38
Aug. 1, 2024
- 40 -
NOTES TO FINANCIAL STATEMENTS
Note 3 DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION (CONTD.)
D.
Loan Agreements {Cont'd.)
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.
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 IO 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 $1,146,063.89 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.
- 41-
Note 4: FUND BALANCES APPROPRIATED
NOTES TO FINANCIAL STATEMENTS
Fund balances at December 31, 2017 and 2016 were appropriated and included as anticipated revenue
in their own respective funds for the year ending December 31, 2017 and 2016 as follows:
Current Fund
Swimming Pool Utility Fund
Fund Balance
December 31,2017
$3,190,644.60
250,287.56
Current Fund
Swimming Pool Utility Fund
Fund Balance
December 31,2016
$2,705,300.93
381,416.12
Utilized in
Succeeding Budget
$2,211,000.00
128,060.00
Utilized in
Succeeding Budget
$1,886,616.88
155,000.00
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 l 00 percent of the amount exceeding 7 5 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, 2017 and 2016, the book value of the Borough's deposits were $7,890,631.66 and
$8,488,087.70 and the bank balances of the Borough's cash and deposits amounted to $7,921,611.05
and $8,783,648.10, respectively. Of the bank balance, during 2017 and 2016, $250,000.00 and
$250,000.00 was FDIC insured and $7,671,611.05 and $8,533,648.10 were GUDPA insured.
-42 -
NOTES TO FINANCIAL STATEMENTS
Note 5:
DEPOSITS AND INVESTMENTS (CONT'D.)
Deposits (Cont'd.)
At December 31, 2017, 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 countcrparty '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 any one 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, 2017, 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:
I. Bonds or other obligations of the United States of America or obligations guaranteed by the United
States;
- 43-
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 oflnvestment 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 $242,828.89 and $240,783.18 at December 31, 2017 and 2016,
respectively.
Cash & Cash Equivalents:
Change Fund
Demand Accounts
2017
Amount
2016
Amount
Total Cash & Cash Equivalents
Investments:
$500.00
7,890,131.66
7,890,631.66
$500.00
8 487 587.70
8,488,087.70
State of NJ Cash Mgmt. Fund
Total Cash, Cash Equivalents & Investments
242,828.89
$8 133 460 55
240,783.18
$8 728 870 88
- 44 -
Note 6:
NOTES TO FINANCIAL STATEMENTS
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 l 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 I" and November 1st of the tax year. In addition, the
property owner receives a preliminary bill for the succeeding year based on one half of the prior year's
tax. The preliminary payments are due and payable on February 1st and May 1st. The New Jersey
Statutes allow a grace period of l O 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 of6% 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
ofNew 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 any one 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:
- 45-
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 local jurisdiction's pension fund.
Membership and contributing
employers of the defined benefit pension plans consisted of the following at June 30, 2017:
Inactive plan members or beneficiaries currently receiving benefits
Inactive plan members entitled to but not yet receiving benefits
Active plan members
Total
Contributing Employers - 1,705.
170,124
650
254,685
425,459
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, 2017 the Borough's total payroll for all employees was $7,426,271.
Total PERS covered payroll was $2,786,154. 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
43:15A and requires contributions by active members and contributing employers. 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 7.20% for State fiscal year 2017. The phase-in of the additional
incremental member contribution rate takes place in July of each subsequent State fiscal year.
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, 2016 and 2017 were $304,004 and $328,116, respectively.
Borough Contributions are due and payable on April 1" 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, 2016 and 2017 consisted of the following:
- 46 -
NOTES TO FINANCIAL STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
A. Public Employees' Retirement System (PERS) (Cont'd.)
2016
2017
Normal Cost
$ 48,401
$48,287
Amortization of Accrued Liability
222,968
245,738
Total Pension
271,369
294,025
NCGI Premiums
14,529
14 674
Total Pension & NCGJ
285,898
308,699
Additional Billings:
LTD Expense
I, 112
Ch. 19, P.L. 2009
18 106
18,305
Total PERS Payment
$ 304 004
$328116
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 N.J.S.A. 43:15A. PERS provides retirement, death and
disability benefits. All benefits vest after ten years of service, except for medical benefits, which vest
after 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
Service retirement benefits of 1/55
1" of final average salary for each year of service credit is available to
tiers 1 and 2 members upon reaching age 60 and to tier 3 members upon reaching age 62. Service
retirement benefits of 1/60'" 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 tiers 1 and 2 members before reaching age 60, tiers 3 and 4 with 25 or more years of
service credit before age 62, and tier 5 with 30 or more years of service credit before age 65. Benefits
are reduced by a fraction of a percent for each month that a member retires prior to the age at which a
member can receive full early retirement benefits in accordance with their respective tier. Tier 1
members can receive an unreduced benefit from age 55 to age 60 if they have at least 25 years of
service. Deferred retirement is available to members who have at least 10 years of service credit and
have not reached the service retirement age for the respective tier.
- 47 -
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, 2017, the PERS reported a net pension liability of $23,278,401,588 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 $8,099,204 or 0.034793%. At
June 30, 2016, the PERS reported a net pension liability of $29,617,131,759 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 $10,291,452 or 0.034748%.
Actuarial Assumptions- The collective total pension liability for the June 30, 2017 measurement date
was determined by an actuarial valuation as of July 1, 2016, which was rolled forward to June 30,
2017. This actuarial valuation used the following actuarial assumptions:
Inflation
Salary Increases: Through 2026
Thereafter
Investment rate of return
2.25%
1.65-4.15% Based on age
2.65-5.15% Based on age
7.00%
Pre-retirement mortality rates were based on the RP-2000 Employee Preretirement Mortality Table for
male and female active participants. For State employees, mortality tables are set back 4 years for
males and females. For local employees, mortality tables are set back 2 years for males and 7 years for
females. In addition, the tables provide for future improvements in mortality from the base year of 2013
using a generational approach based on the plan actuary's modified MP-2014 projection scale. Post-
retirement mortality rates were based on the RP-2000 Combined Healthy Male and Female Mortality
Tables (set back 1 year for males and females) for service retirements and beneficiaries of former
members and a one-year static projection based on mortality improvement Scale AA. In addition, the
tables for service retirements and beneficiaries of former members provide for future improvements in
mortality from the base year of 2013 using a generational approach based on the plan actuary's
modified MP-2014 projection scale. Disability retirement rates used to value disabled retirees were
based on the RP-2000 Disabled Mortality Table (set back 3 years for males and set forward 1 year for
females).
The actuarial assumptions used in the July 1, 2016 valuation were based on the results of an actuarial
experience study for the period July 1, 2011 to June 30, 2014. It is likely that future experience will not
exactly conform to these assumptions. To the extent that actual experience deviates from these
assumptions, the emerging liabilities may be higher or lower than anticipated. The more the experience
deviates, the larger the impact on future financial statements.
In accordance with State statute, the long-term expected rate of return on plan investments (7 .00%
at June 30, 2017) is determined by the State Treasurer, after consultation with the Directors of the
Division of Investment 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.
- 48-
NOTES TO FINANCIAL STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
A. Public Employees' Retirement System (PERS) (Cont'd.)
These ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation.
Best estimates of arithmetic rates of return for each major asset class included in PERS's target asset
allocation as of June 30, 2017 are summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Absolute return/risk mitigation
5.00%
5.51%
Cash equivalents
5.50%
1.00%
U.S. Treasuries
3.00%
1.87%
Investment grade credit
10.00%
3.78%
Public high yield
2.50%
6.82%
Global diversified credit
5.00%
7.10%
Credit oriented hedge funds
1.00%
6.60%
Debt related private equity
2.00%
10.63%
Debt related real estate
1.00%
6.61%
Private real estate
2.50%
11.83%
Equity related real estate
6.25%
9.23%
U.S. equity
30.00%
8.19%
Non-U.S. developed markets equity
11.50%
9.00%
Emerging markets equity
6.50%
11.64%
Buyouts/venture capital
8.25%
13.08%
Discount Rate - The discount rate used to measure the total pension liability was 5.00% as of June 30,
201 7. This single blended discount rate was based on the long-term expected rate of return on pension
plan investments of 7.00% and a municipal bond rate of 3.58% as of June 30, 2017 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 contribution rate in
the most recent fiscal year. The State employer contributed 40% of the actuarially determined
contributions and the local employers contributed 100% of their 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 2040. Therefore, the long-term
expected rate of return on plan investments was applied to projected benefit payments through 2040
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, 2017, calculated using the discount rates as disclosed above as
well as what the collective net pension liability would be if it were calculated using a discount rate that
is l percentage point lower or l percentage rate higher than the current rate:
State
Local
PERS Plan Total
Borough's proportionate share
of the net oension liabilitv
At I% Decrease
(4.00%)
$29,818,581,732
28,878,437,027
$58 697.018 759
$10.04 7 .613
At current discount rate
(5.00%)
$25,645,622,797
23,278,401,588
$48 924 024 385
$8.099.204
At 1 % increase
(6.00%)
$22,179,578,513
18,612,878,069
$40,792 456 5 82
$6.475.939
- 49 -
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 net pension liability for PERS, including the
State of New Jersey, at June 30, 2017 is as follows:
State
Local
Total
Total Pension Liability
$32,535,896,852
$44,852,367,051
$77,388,263,903
Plan Fiduciary Net Position
6,890,274,055
21,573,965,463
28,464,239,518
Net Pension Liability
$25,645,622,727
$23 278 4Q I 588
_$48,224,024,385
Collective Deferred Outflows of
Resources and Deferred Inflows of
Resources - Amounts
reported as deferred outflows of resources and deferred inflows of resources ( excluding
employer specific amounts) related to pensions will be recognized in pension expense as
follows:
Year ending
Amount
2018
$301,244
2019
390,916
2020
264,952
2021
(194,843)
2022
(168,120)
Total
$594 149
Changes in Proportion - The previous amounts do not include employer specific deferred outflows
of resources and deferred inflows of resources related to changes in proportion. These amounts should
be recognized (amortized) by each employer over the average of the expected remaining service lives
of all plan members, which is 5.48, 5.57, 5.72 and 6.44 years for the 2017, 2016, 2015, and 2014
amounts, respectively.
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, 2017:
Inactive plan members or beneficiaries currently receiving benefits
Inactive plan members entitled to but not yet receiving benefits
Active plan members
Total
43,011
47
40 789
Contributing Employers - 586.
- 50 -
NOTES TO FINANCIAL ST A TEMENTS
Note 7.
PENSION PLANS (CONT'D.)
B. Police and Firemen's Retirement System (PFRS) (Cont'd.)
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, 2017 the Borough's total payroll for all employees was $7,426,271.
Total PFRS covered payroll was $2,802,491. 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
43:16A and requires contributions by active members and contributing employers. Pursuant to the
provisions of Chapter 78, P.L. 2011, the active member contributions rate was 10.0% in State fiscal
year 2017. 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, 2016 and 2017 were $655,824 and
$701,362, respectively.
Borough Contributions are due and payable on April I st 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, 2015 and 2016 consisted of the following:
2016
2017
Normal Cost
$204,668
$223,141
Amortization of Accrued Liability
378,595
403 933
Total Pension
583,263
627,074
NCGI Premiums
27,214
28,500
Total Regular Billing
610,477
655,574
Additional Billings:
Ch. 19, P.L. 2009
45 347
45,788
Total PFRS Payment
$ 655 824
$ 7Q],362
The vesting and benefit provisions are set by N.J.S.A. 43:I6A. 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
- 51 -
NOTES TO FINANCIAL STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
B. Police and Firemen's Retirement System (PFRS) (Cont'd.)
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 I% 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 I and 2 members) and 60% (tier 3
members) of final compensation plus I% 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, 2017, the PFRS reported a net pension liability of $15,438,066,691 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
$12,120,985 or 0.078514%. At June 30, 2016, the PFRS reported a net pension liability of
$19,102,557,969 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 $15,359,398 or 0.080405%.
Actuarial Assumptions- The collective total pension liability for the June 30, 2017 measurement date
was determined by an actuarial valuation as of July I, 2016, which was rolled forward to June 30,
2017. This actuarial valuation used the following actuarial assumptions:
Inflation rate
Salary Increases: Through 2026
Thereafter
Investment rate of return
2.25%
2.10-8.98% Based on age
3.10-9.98% Based on age
7.00%
Pre-retirement mortality rates were based on the RP-2000 Pre-Retirement mortality tables projected
thirteen years using Projection Scale BB and then projected on a generational basis using the plan
actuary's modified 2014 projection scales. Post-retirement mortality rates for male service retirements
and beneficiaries are based the RP-2000 Combined Healthy Mortality Tables projected one year using
Projection Scale AA and three years using the plan actuary's modified 2014 projection scales and
further projected on a generational basis using the plan actuary's modified 2014 projection scales. Post-
retirement mortality rates for female service retirements and beneficiaries were based the RP-2000
Combined Healthy Mortality Tables projected thirteen years using Projection Scale BB and then three
years using the plan actuary's modified 2014 projection scales, which was further projected on a
generational basis using the plan actuary's modified 2014 projection scales. Disability mortality rates
were based on special mortality tables used for the period after disability retirement.
The actuarial assumptions used in the July I, 2016 valuation were based on the results of an actuarial
experience study for the period July 1, 2010 to June 30, 2013.
- 52 -
NOTES TO FINANCIAL STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
B. Police and Firemen's Retirement System (PFRS) (Cont'd.)
The long-term expected rate of return on plan investments (7.00% at June 30, 2017) is determined by
the State Treasurer, after consultation with the Directors of the Division oflnvestment and Division of
Pensions and Benefits, the board of trustees and the actuaries. The long-term expected rate of return
was determined using a building block method in which best-estimate ranges of expected future real
rates of return (expected returns, net of pension plan investment expense and inflation) are developed
for each major asset class. These ranges are combined to produce the long-term expected rate of return
by weighting the expected future real rates of return by the target asset allocation percentage and by
adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class
included in PFRS's target asset allocation as of June 30, 2017 are summarized in the following table:
Long-Term
Asset Class
Target
Expected Real
Allocation
Rate of Return
Absolute return/risk mitigation
5.00%
5.51%
Cash equivalents
5.50%
1.00%
U.S. Treasuries
3.00%
1.87%
Investment grade credit
10.00%
3.78%
Public high yield
2.50%
6.82%
Global diversified credit
5.00%
7.10%
Credit oriented hedge funds
1.00%
6.60%
Debt related private equity
2.00%
10.63%
Debt related real estate
1.00%
6.61%
Private real estate
2.50%
11.83%
Equity related real estate
6.25%
9.23%
U.S. equity
30.00%
8.19%
Non-U .S. developed markets equity
11.50%
9.00%
Emerging markets equity
6.50%
11.64%
Buyouts/venture capital
8.25%
13.08%
Discount Rate - The discount rate used to measure the total pension liability was 6.14% as of June 30,
2017. This single blended discount rate was based on the long-term expected rate of return on pension
plan investments of 7.00% and a municipal bond rate of 3.58% as of June 30, 2017 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 and the nonemployer contributing entity will
be made based on the contribution rate in the most recent fiscal year. The State employer contributed
40% of the actuarially determined contributions and the local employers contributed 100% of their
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
2057. Therefore, the long-term expected rate of return on plan investments was applied to projected
benefit payments through 2057, and the municipal bond rate was applied to projected benefit payments
after that date in determining the total pension liability.
- 53-
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 collective net pension liability of the
participating employers as of June 30, 2017, calculated using the discount rate as disclosed above as
well as what the collective net pension liability would be if it was calculated using a discount rate that
is I-percentage point lower or I-percentage-point higher than the current rate:
At 1 % Decrease
At current discount rate
At I% increase
(5.14%)
(6.14%)*
(7.14%)
State
$ 5,202,348,756
$4,395,743,141
$3,734,560,750
Local
22,619,279,081
17 167 260 198
12,687,806,745
PFRS Plan Total
$27,821,627,837
$21,563,003,339
$16,422,367,495
*- Local Share includes $1,729,193,507 of Special Funding Situation allocated to the State of NJ 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, 2017 is as follows:
Total Pension Liability
Plan Fiduciary Net Position
$5,939,531,281
I 543 788 140
$41,471,190,457
24,303,930,259
$] 7 167 260 1 98
$47,410,721,738
25 847 718 399
$2] 563 003,3;i9
Net Pension Liability
$ 4 395 743 141
Collective Deferred Outflows of
Resources and Deferred Inflows of
Resources - Amounts reported as
deferred outflows of resources and deferred inflows of resources ( excluding employer specific
amounts) related to pensions will be recognized in pension expense as follows:
Year ending
Amount
Total
$125,827
367,995
16,256
(588,954)
(25,796)
$/104,672)
2018
2019
2020
2021
2022
Changes in Proportion - The previous amounts do not include employer specific deferred outflows of
resources and deferred inflows of resources related to changes in proportion. These amounts should be
recognized (amortized) by each employer over the average of the expected remaining service lives of
all plan members, which is 5.59, 5.58, 5.53, and 6.17 years for the 2017, 2016, 2015 and 2014 amounts,
respectively.
- 54 -
NOTES TO FINANCIAL STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
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 l , 2007; employees enrolled in TPAF or PERS on or
after July 1, 2007, who earn salary in excess of established "maximum compensation" limits;
employees otherwise eligible to enroll in TPAF 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 TPAF 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, 2016, the membership in the DCRP, based on the information within
the Division's database, was 46,557.
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.
Eligible members are provided with a defined contribution retirement plan intended to qualify for
favorable Federal income tax treatment under !RC Section 40l(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, 2016 the Borough's total payroll for all employees was $7,426,271.
Total DCRP covered payroll was $321,219. 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, 2016 were $9,637 and $19,432, respectively.
D. Cumulative PERS and PFRS Deferred Outflows of Resources and Deferred Inflows of Resources
Net Pension
Deferred
Deferred
Total Pension
Liability
Outflows
Inflows
Expense
PERS
$8,099,204
$2,219,877
$1,625,728
$698,381
PFRS
12,120,985
2,281,295
2,385,966
1,142,448
Total
$ 2Q,22Q, l 82
$4,SQI 172
$4,011,624
$1,84Q,822
- 55 -
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 N.J.S.A. 52:14-17.25 et seq., to provide health benefits to State employees, retirees, and
their dependents.
Rules governing the operation and administration of the program are found in Title 17, Chapter 9 of the
New Jersey Administrative Code. SHBP provides medical, prescription drugs, mental health/substance
abuse, and Medicare Part B reimbursement to retirees and their covered dependents.
The SHBP was extended to employees, retirees, and dependents of participating local public employers
in 1964. Local employers must adopt a resolution to participate in the SHBP. In 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.
Cost sharing requirements for retirees are as follows:
I. 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, 2017 were
$1,160,659.68, which equaled the required contributions for the year. There were approximately 46
retired participants eligible at December 31, 2017.
- 56-
Note 9:
NOTES TO FINANCIAL STATEMENTS
ACCRUED SICK AND VACA T!ON 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 $134,684.86 and $125,679.04 for 2017 and 2016. 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 $322,616.96 and $321,623.34 for 2017 and 2016.
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 of Insurance 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, 2017, the Fund reported for all years combined, total assets of$49,959,759, liabilities
and expenses of $43,134,304, which includes case reserves of $28,162,179 and IBNR of $14,639,682
and net position for all years of$6,825,455.
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 2017 and the previous two years
Borough
Fiscal
Contributions
Employee
Amount
Ending
Year
And Interest
Contributions
Reimbursed
Balance
2017
$2,113.43
$0.00
$6,250.37
$207,983.83
2016
2,123.05
3,024.89
5.290.92
212,120.77
2015
1,620.14
1,204.68
4,743.69
212,263.75
- 57 -
NOTES TO FINANCIAL STATEMENTS
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, 2017, 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.
Note 13:
lNTERFUNDS
The following interfund balances remained on the balance sheet date at December 31, 2017:
[nterfunds
Interfunds
Fund
Receivable
Payable
Current Fund
$290,740.72
$799,034.15
Grant Fund
401,668.89
Assessment Trust Fund
21,546.55
Animal Control Fund
27,656.66
Trust Fund
943,927.27
Community Development Block Grant
8,200.00
General Capital Fund
7,164.08
786,987.42
Swimming Pool Util. Oper Fund
160,774.90
76.18
Swimming Pool Util. Cap Fund
160 774.90
Total
$1,804,215.86
$1,804,215.86
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.
- 58-
NOTES TO FINANCIAL ST A TEMENTS
Note 14:
LONG TERM TAX EXEMPTIONS
The Borough provides for long-term tax exemptions, as authorized and permitted by New Jersey State
Statutes. N.J.S.A. 40A:20-l et seq. sets forth the criteria and mechanism by which property taxes can
and are abated. The exemptions provided by the Borough are predominately for affordable housing
projects. Taxes abated include municipal, local school and county taxes. The Borough is required to
remit five percent (5.00%) to the County for any payments received in lieu of taxes (PILOT payments).
The Borough PILOT billings in 2017 were $0.00 and taxes in 2017 that otherwise would have been due
on these long-term tax exemptions amounted to $2,584.55, based upon the assessed valuations of the
long-term tax exemptions properties.
Note 15:
SUBSEQUENT EVENTS
Subsequent to the year ending December 31, 2017 and as of the date of the audit report, the following
projects have been authorized:
Appropriating $1,981,165 and authorizing $1,882,106 bonds and notes for Various Capital
Improvements.
The Borough issued Bond Anticipation Notes dated June 28, 2018 with a maturity date of June 27,
2019. The BAN's were issued for $3,400,000 with a net interest cost of2.1403% and a coupon rate of
2.75%.
- 59 -
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
PART II
REQUIRED SUPPLEMENTARY INFORMATION
- 60 -
Schedule 1
BOROUGH OF MIDDLESEX
SCHEDULE OF TIIB BOROUGH'S SHARE OF THE NET PENSION LIABILITY
PUBLIC EMPLOYEES RETIREMENT SYSTEM /Local Group)
Last 10 Fiscal Years"
2014
2015
2016
2017
Borough's Proportion of the
Net Pension Liability
0.032148%
0.033254%
0.034748%
0.034793%
Borough's Proportionate Share of the
Net Pension Liability
$6,018,951
$7,464,929
$10,291,452
$8,099,204
Borough's Covered-Employee
Payroll
$ 2,358,908
$ 2,407,049
$ 2,420,826
$ 2,786,154
Borough's Proportionate Share of the
Net Pension Liability as a percentage
of the Covered-Employee Payroll
255.16%
310.13%
425.12%
290.69%
Plan Fiduciary Net Position as a
percentage of the Total Pension
Liability
52.08%
47.93%
40.14%
48.10%
* Amounts presented for each fiscal year were determined as of June 30.
- 61 -
Schedule 2
BOROUGH OF MIDDLESEX
SCHEDULE OF THE BOROUGH'S CONTRJBUTIONS
PUBLIC EMPLOYEES RETIREMENT SYSTEM (Local Group)
Last 10 Fiscal Years*
Contractually Required Contribution
$
255,353
$
283,016
$
304,004
$
328,116
Contribution in Relation to
Contractually Required Contribution
$ (255,353)
$ (283,016)
$ (304,004)
$ (328,116)
Contribution deficiency (excess)
$
$
$
$
Borough's Proportionate Share of the
Payroll
$ 2,358,908
$ 2,407,049
$ 2,420,826
$ 2,786,154
Contributions as a percentage of
Covered Employee Payroll
10.83%
11.76%
12.56%
11.78%
* Amounts presented for each fiscal year were determined as of June 30.
- 62 -
Schedule 3
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 IO Fiscal Years*
2014
2015
2016
2017
Proportion of the Non-State, Non-Special
Funding Situation Employer Group Net
Pension Liability attributable to the Borough
0.075461%
0.075103%
0.080405%
0.078514%
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
$15,359,398
$12,120,985
Borough's Covered-Employee
Payroll
$2,467,337
$2,517,691
$2,517,691
$2,802,494
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%
610.06%
432.51%
Plan Fiduciary Net Position as a
percentage of the Total Pension
Liability (See Note Below)
62.41%
56.31%
52.01%
58.60%
* 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.
- 63-
Schedule 4
BOROUGH OF MIDDLESEX
SCHEDULE OF THE BOROUGH'S CONTRIBUTIONS
POLICE AND FIREMEN RETIREMENT SYSTEM
(Non-State, Non-Special Funding Situation Employer Member Group)
Last IO Fiscal Years*
2014
2015
2016
2017
Contractually Required Contribution
$ 605,973
$
624,804
$
655,824
$
701,362
Contribution in Relation to
Contractually Required Contribution
$ (605,973)
$ (624,804)
$ (655,824)
$ (701,362)
Contribution deficiency (excess)
$
$
$
$
Borough's Proportionate Share of the
Payroll
$2,467,337
$ 2,517,691
$ 2,572,302
$ 2,802,491
Contributions as a percentage of
Covered Employee Payroll
24.56%
24.82%
25.50%
25.03%
* Amounts presented for each fiscal year were determined as of June 30.
- 64-
BOROUGH OF MIDDLESEX
COUNTY OF MIDDLESEX, NEW JERSEY
NOTES TO REQUIRED SUPPLEMENTARY PENSION INFORMATION
DECEMBER 31, 2017
NOTE 1. CHANGES IN ASSUMPTIONS
The following information is as abstracted from the State of New Jersey, Division of Pension and
Benefits, Financial Statements and Supplementary Schedules report as of June 30, 2017, dated March
29, 2018. This information pertains to the RSI schedules of changes in net pension liability contained
in that report.
Changes in benefit terms - None
Changes in assumptions- For 2017, the discount rate changed to 5.00% and the long-term rate of return
changed to 7.00%. For 2016, the discount rate changed to 3.98%, the long-term expected rate of
return changed to 7.65% from 7.90%, demographic assumptions were revised in accordance with the
results of the July I, 2011 - June 30, 2014 experience study and the mortality improvement scale
incorporated the plan actuary's modified MP-2014 projection scale. Further, salary increases were
assumed to increase between 1.65% and 4.15% (hased on age) through fiscal year 2026 and 2.65%
and 5.15% (based on age) for each fiscal year thereafter. For 2015, the discount rate changed to
4.90%. In addition, the social security wage base was set at $118,500 for 2015, increasing 4.00% per
annum, compounded annually and the 40l(a)(l7) pay limit was set at $265,000 for 2015, increasing
3.00% per annum, compounded annually. For 2014, the discount rate was 5.39%.
Changes in benefit terms - In 2017, Chapter 26, P.L. 2016 increased the accidental death benefit
payable to children if there is no surviving spouse to 70% of final compensation.
Changes in assumptions - For 2017, the discount rate changed to 6.14% and the long-term rate of
returned changed to 7.00%. For 2016, the discount rate changed to 5.55%, the long-term expected
rate of return changed to 7.65% from 7.90%, and the mortality improvement scale incorporated the
plan actuary's modified 2014 projection scale. Further, salary increases were assumed to increase
between 2.10% and 8.98% (based on age) through fiscal year 2026 and 3.10% and 9.98% (based on
age) for each fiscal year thereafter. For 2015, the discount rate changed to 5.79% and demographic
assumptions were revised in accordance with the results of the July 1, 2010 - June 30, 2013
experience study. For 2014, the discount rate was 6.32%.
- 65 -
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
PART Ill
SUPPLEMENTARY SCHEDULES
- 66-
CURRENT FUND
- 67 -
CURRENT FUND
SCHEDULE OF CASH
Exhibit A-4
Cash Balance December 31, 2016
.
A
Increased by Cash Receipts
Miscellaneous Revenue Not Anticipated
A-1, 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 Returned.................................. A- 5
473,762.95
132,250.00
43,597,430.21
3,002,699.38
2,001,686.62
519,418.21
13,407.00
300.00
$
5,959,198.79
Total Cash Receipts...............................................................................
49,740,954.37
Decreased by Disbursements
Budget Appropriations
.
Interfunds
.
Appropriation Reserves
Taxes Payable
.
Various A/P, & Reserves
.
Petty Cash Advanced
.
A-3
A-10
A-11
A-13
A-14
A-5
(17,743,098.37)
(825,669.03)
(394,775.91)
(29,787,428.88)
(14,429.30)
(300.00)
Total Cash Disbursements........................................................................ (48,765,701.49)
Cash Balance December 31, 20 I 7
..
A
- 68-
$
6 934 451.67
===========
CURRENT FUND
SCHEDULE OF PETTY CASH AND CHANGE FUNDS
Balance
December 3 1,
2016
Advanced
Balance
December 31,
Returned
2017
Change Fund
Collector - Treasurer
Municipal Court
Construction
Borough Clerk
Swim Pool Utility
Petty Cash Funds:
Borough Clerk
Police
Recreation
$
200.00
$
150.00
50.00
50.00
50.00
100.00
100.00
100.00
$
100.00
100.00
100.00
$
200.00
150.00
50.00
50.00
50.00
$
500.00
$ 300.00
$ 300.00
$
500.00
A
A-4
- 69 -
A-4
A
Exhibit A-5
SCHEDULE OF DUE FROM STATE OF NEW JERSEY -
FOR ALLOWABLE DEDUCTIONS PER CHAPTER 129, P.L. 1976
CURRENT FUND
Balance - December 31, 2016
Increased by:
Allowable Deductions per
Tax Billings
2017 Sr. Citizens and Vet.
Ded. Allowed by Collector
Decreased by:
Collected
2017 Sr. Citizens and Vet.
Ded. Disallowed by Collector
Balance - December 31, 2017
Analysis of Sr. Citizens & Veterans
Deductions Allowed - 2017 Taxes
Per Tax Billings
Allowed (Disallowed) by Tax Collector (Net)
A
A-6
A-6
A-4
A-6
A
A-6
A-6
A-7
- 70 -
133,000.00
3 750.00
132,250.00
500.00
$
39,661.05
136 750.00
176,411.05
132 750.00
$
43 661.05
$ 133,000.00
3 250.00
$ 136,250.00
Exhibit - A-6
Exhibit A-7
CURRENT FUND
SCHEDULE OF PROPERTY TAXES RECEIVABLE AND LEVY ANALYSIS
Property
CY 18
CY 17
CY 16
Tax
Acquired
Total
Prepaid
Current
Delinquent
Arrears
Liens
for Taxes
Ref.
Balance 12/31/20!6_, .
$
2,236,108.71
$
(223,346.50)
$
$
701,809.59
$ 334,506.62
$
1,423,139.00
Billings/ Levy:
Original Levy ...
.......... A- 7
42,879,044.46
42,879,044.46
Added & Omitted ........ A- 7
60,751.01
60,751.01
Added by Assessor ........ A- 7
TTL Interest & Costs ...... A- 9
791.00
791.00
Canceled Taxes .....
(65,712 30)
(52,365.24)
(13,347.06)
Transfers
Tax Lien ..
(26,139.44)
26,139.44
'1
,....
Revenue
Sr.Citizens & Vets ..
Original Levy ..
. ... A-6
(133,000.00)
(133,000.00)
Allowed/Disallowed ..
A-6
(3,250.00)
(3,250.00)
Cash Receipts ..
....... A-4
(43,597,430.21)
(905,467.87)
(42,003,749.81)
(688,212.53)
Prepaid Applied ...
223,346.50
(223,346.50)
Balance 12/31/2017 ..
$
1,377,302.67
$
(905,467.87)
$
498,735.48
$
250.00
$
$ 360,646.06
$
1,423,139.00
Ref.
A
A,A-7
A
A
A
A
Anal~sis of2017 Pro12e[D'. Tax LeYX:
Current
Tax Yield:
Tax Leyy:
Ref.
Taxes Realized:
Ref.
General Purpose Tax
s 42,879,044.46
Local School District Tax
A-15
$ 24,347,829.00
Sr. Citizens & Vets
A-6,A-7
s
136,250.00
Added Taxes
__
6_0 751.01
County Tax
A-13
5,385,830.30
Cash Receipts
A-7
42,003,749.81
County Open Space
A-13
437,890.60
Prepayments
A-7
223 346.50
s 42,939,795.47
Due County - Added & Omitted
A-13
8,248.98
Subtotal
A-1
42,363,346.31
Res. For Uncoil. Tax
A-3
875 000.00
30,179,798.88
43,238,346.31
Local Tax for Municipal Purposes
A-2
12,221,626.42
Allocated to School
Minimum Library Tax
A-2
484,987.00
and County
A-13,A-15
(30,179,798.88)
Add: Additional Tax Levied
53 383.17
A-2
$ 13,058,547.43
J;_ 42,939,795.47
Exhibit A-8
CURRENT FUND
SCHEDULE OF NONBUDGET REVENUES & VARIOUS ACCOUNTS RECEJV ABLES
Accrued/
Cash
Dec.31,2016
Adjustments
Receipts
Dec. 31, 2017
Revenue Accounts Receivable:
Ref.
Fines and Costs - Municipal Court
$ 25,223.93
22,214.39 $
(25,223.93) $ 22,214.39
A-2
25,223.93
22,214.39
(25,223.93)
22,214.39
Non - Budget Revenue:
Abandoned Property
85,500.00
(85,500.00)
Containers
3,319.00
(3,319.00)
Duplicate Rec & Tax Bills
850.00
(850.00)
Easements
13,500.00
(13,500.00)
FEMA - Hurricane Sandy
134,632.98
(134,632.98)
FEMA - Severe Winter Storm
54,802.15
(54,802.15)
Health Benefits Contrib. - Library
36,815.88
(36,815.88)
Homestead Rebate
684.60
(684.60)
Landlord Registration
21,450.00
(21,450.00)
Police Outside Service Admin
67,315.55
(67,315.55)
Property Maintenance Admin Fee
9,727.76
(9,727.76)
Property Tax List
520.00
(520.00)
Senior Citizens & Veterans Deduct. - Admin. Fee
2,645.00
(2,645.00)
Miscellaneous
42,000.03
(42,000.03)
A-1, A-2,A-4
473,762.95
(473,762.95)
Total. ...........................................................
$ 25,223.93
$
495,977.34
$
(498,986.88) $ 22,214.39
Ref.
A
A-4
A
Ref.
Anal:Ysis of Miscellaneous Revenues:
Account Receivable Collections
A-4
$
25,223.93
Current Year Collections
A-4
2.977 475.45
Subtotal
A-4
3,002,699.38
Sewer Collections
A-9
2,001,686.62
Interest on Investments
A-10
2,108.60
Grants Realized> Grant Fund
A-10
148,671.31
Reserve for Sale of Municipal Asscts . Cell Tower
A-14
300 000.00
A-2
$ 5 455,165.91
- 72-
SCHEDULE OF SEWER FLOW CHARGES RECEIVABLE
CURRE NT FUND
Balance - December 31, 2016
A
Increased by:
Sewer Flow Charges:
User Charges
Reserve
Decreased by:
Collected - Current Year
Canceled
A-4, A-8
Reserve
Balance - December 3 l, 2017
A
Collection Analysis:
Budget Revenues
A-9
A-4, A-8
Analysis of Balance:
Year- 2017
- 73-
2,001,686.62
56 541.17
Exhibit - A-9
$1,170,920.95
1 074 085.48
2,245,006.43
2 058 227.79
$
186 778.64
$ 2,001,686.62
$ 2,001,686.62
$
186 778.64
$
186 778.64
Exhibit A-10
CURRENTFUND
STATEMENT OF INTER.FUNDS RECEIVABLE/ PAY ABLE
Cash
Cash
Budget
Budget
Dec. 31, 2015
Receipts
Disbursements
Revenues
Appropriations Adjustments
Dec. 31, 2016
lnterfunds
Animal Control Fund .......................... $ (20,793.32) $
$
$
$
(6,863.34)
(27,656.66)
Trust Assessment Fund ........................
(14,128.04)
(254.43)
(14,382.47)
Trust - Other Fund .............................
399,388.85
66,241.52
(44,490.11)
421,140.26
:;;!
Community Development Block Grant .....
(12,294.00)
12,294.00 $
(8,200.00)
(8,200.00)
General Capital Fund .....................
300,000.00
(540,425.41)
(240,425.41)
Swimming Pool Utility Operating Fund ....
(147.03)
1,925.02
(1,854.17)
(76.18)
Grant Fund ......................................
471,489.73
138,957.67
(232,553.51)
(148,671.31)
148,671.31
377,893.89
Total... ............................................... $ 823,516.19 $ 519,418.21
$ (825,669.03) $ (150,779.91) $
148,671.31
$ (6,863.34) $
508,293.43
Ref.
A
A-4
A-4
A-1,A-8
A-1,A-3
A-1
A
Receivables
$ (47,362.39)
$
(290,740.72)
Payables
870,878.58
799,034.15
$ 823,516.19
$
508,293.43
Exhibit A-11
SCHEDULE OF 2016 APPROPRIATION RESERVES
Page I of6
BALANCE
BALANCE AFTER
PAID OR
BALANCE
DEC3! 2016
ENCUMBRANCES
MODIFICATION
CHARGED
LAPSED
Operations Within "CAPS"
General Administration
Salaries and Wages
$
461.57 $
s
461.57 $
s
461.57
Other Expenses
2,754.49
2,754.49
1,373.73
1,380.76
Mayor and Council
Salaries and Wages
0.24
0.24
0.24
Other Expenses
3,157.55
660.88
3,818.43
1,042.88
2,775.55
Municipal Clerk
Salaries and Wages
120.76
120.76
120.76
Other Expenses
573.75
558.04
1,131.79
921.02
210.77
Postage for AU Departments
Other Expenses
2,194.60
2,194.60
2,100.00
94.60
Printing and Advertising
Other Expenses
2,717.41
2,717.41
853.79
1,863.62
~
Financial Administration
Salaries and Wages
1,929.74
1,929.74
1,929.74
Other Expenses
4,823.61
4,823.61
1,978.05
2,845.56
Elections
Other Expenses
4,921.00
4,921.00
4,921.00
Annual Audit
Other Expenses
41,467.00
41,467.00
41,175.00
292.00
Revenue Administration
Salaries and Wages
736.89
736.89
736.89
Other Expenses
1,707.59
394.95
2,102.54
336.95
1,765.59
Tax Assessment Administration
Salaries and Wages
475.12
475.12
475.12
Other Expenses
755.57
755.57
120.00
635.57
Legal Services
Other Expenses
16,034.28
3,937.44
19,971.72
14,983.92
4,987.80
Engineering Services
Other Expenses
I 1,344.72
9,858.60
21,20332
12,824.50
8,378.82
Computer Data Services
Salaries and Wages
52.01
52.01
52.01
Other Expenses
26,937.98
47,763.74
74,701.72
50,452.75
24,248.97
Exhibit A-11
SCHEDUL E OF 2016 APPROPRlATIONRE SERVE S
Page2of6
BALANCE
BALANCE AFTER
PAIDOR
BALANCE
DEC.31 2016
ENCUMBRANCES
MODIFICATION
CHARGED
LAPSED
LAND USE ADMINISTRATION:
Environmental Legal & Engineering Services and Costs
Other Expenses
$
11,345.25 $
936.00 $
12,281.25 $
2,652.00 $
9,629.25
Planning Board
Salaries and Wages
1,400.00
1,400.00
1,400.00
Other Expenses
11,589.20
952.19
12,54139
7,079.16
5,462.23
Zoning Board of Adjustment
Salaries and Wages
1,800.00
1,800.00
1,800.00
Other Expenses
12,565.78
12,565.78
4,050.00
8,515.78
Code Enforcement
Salaries and Wages
135.93
135.93
135.93
Other Expenses
6,624.19
354.78
6,978.97
401.46
6,577.51
INSURANCE
' '-l
"'
Temporary Disability Insurance
1,474.11
1,474.11
1,474.11
Long-Tenn Disability Insurance
2,723.66
2,723.66
2,723.66
Employees Group Insurance
194. 93
194.93
194.93
PUBLIC SAFETY
Police Department
Salaries and Wages
84,649.37
84,649.37
6,503.40
78,145.97
Other Expenses
10,914.63
14,644.35
25,558.98
21,365.33
4,193.65
Juvenile Conference Committee
Other Expenses
236.02
236.02
236.02
Office of Emergency Management
Other Expenses
4,745.07
583.28
5,328.35
234.53
5,093.82
Fire Department
Other Expenses
6,490.29
8,986.82
15,477.11
8,532.45
6,944.66
Hazardous Waste Facilities Tax-
Fire Services/ First Aid Organization
Other Expenses
3,000.00
3,000.00
3,000.00
Fire Hydrant Fees
18,689.49
18,689.49
17,410.77
1,278.72
Municipal Prosecutor's Office
Salaries and Wages
0.60
0.60
0.60
Municipal Court
Salaries and Wages
6,386.40
6,386.40
200.00
6,186.40
Other Expenses
2,830.34
2,830.34
2,830.34
Exhibit A-11
Page3of6
SCHE DULE OF 2016 APPROPRIATION RESERVE S
BAL AN CE
BAL ANCE AFTER
PAID OR
BAL ANCE
DEC.31 2016
ENCUMB RA NCES
MODlFICATION
CHA RGED
LAPSED
PUB LIC WORK S
Road Repairs and Maintenance
Salaries and Wages
$
9,432.25
$
$
9,432.25
$
s
9,432.25
Other Expenses
3,633.32
24,125.23
27,758.55
26,263.25
1,495.30
Shade Tree Commission
Salaries and Wages
18.!3
18. 13
18.13
Other Expenses
165.10
15,000.00
15,165.10
14,550.00
615.10
Garbage and Trash Removal
Salaries and Wages
16,876.61
16,876.61
16,876.61
Other Expenses
I 4,096.36
3,263.87
17,360.23
3,996.94
13,363.29
Community Services Act
(Condominium Community Costs)
Other Expenses
583.77
583.77
583.77
Building and Grounds
"
Other Expenses
3,669.11
17,942.84
21,611.95
21,150.67
461.28
"
Rental of Rescue Squad Building
Other Expenses
1,800.00
1,800.00
1,800.00
HEALTH AND HUMAN SERVICES
Public Health Services (Board of Health)
Salaries and Wages
1.67
1.67
1.67
Other Expenses
1,077.57
1,077.57
1,077.57
Animal Control
Other Expenses
6,566.66
6,566.66
4,800.00
1,766.66
Senior Nutrition -Program Costs
Salaries and Wages
1,426.43
1,426.43
1,426.43
Title Ill Senior Medical Transportation - Program Costs
Salaries and Wages
784.28
784.28
784.28
Title III Information & Assistance - Program Costs
Salaries and Wages
7,621.24
7,621.24
7,621.24
Exhibit A-II
Page4of6
SCHEDULE OF 2016 APPROPRIATION RESERVE S
BAL ANCE
BAL ANCE AFTER
PAIDOR
BAL AN CE
DEC. 31 2016
ENCUMBRA NCES
MODIFICATION
CHARGED
LAP SED
PARK S AND RE CREATION
Recreation Services and Programs
Salaries and Wages
$
10,869.12 $
$
10,869.12 $
$
10,869.12
Other Expenses
7,718.54
328.19
8,046.73
328.19
7,718.54
Parks and Playgrounds
Salaries and Wages
2,168.97
2,168.97
2,168.97
Other Expenses
1,617.83
3,505.88
5,123.71
4,147.31
976.40
Celebration of Public Events
Other Expenses
7.83
154.00
161.83
154.00
7.83
Senior Citizens Bus Transportation
Other Expenses
2,098.07
2,098.07
2,098.07
Senior Citizen Coordinator
Salaries and Wages
613.02
613.02
613.02
Other Expenses
3,415.42
832.29
4,247.71
825.29
3,422.42
"
(/)
OTHER COMMON OPERATING FUNCTIONS-
UNCLASSIFIED
Accumulated Sick Leave Compensation
Salaries and Wages
9,431.52
9,431.52
9,431.52
Housing and Community Advisory Board
Other Expenses
100.00
100.00
100.00
Maintenance of Tax Map
Other Expenses
1,000.00
1,000.00
1,000.00
Beautification Committee
Other Expenses
14.60
14.60
14.60
Multi-Family Solid Waste Collection
Other Expenses
48,000.00
48,000.00
33,457.09
14,542.91
Exhibit A-11
SCHEDULE OF 2016 APPROPRIATlON RESERVES
Page5of6
BALANCE
BALANCE AFTER
PAJDOR
BALANCE
DEC 31 2016
ENCUMBRANCES
MODIF1CAT10N
CHARGED
LAPSED
UTIL1TY EXPENSES AND BULK PURCHASES
Electricity
$
32,812.08 $
$
32,812.08
$
14,225.70 $
18,586.38
Street Lighting
16,601.82
16,601.82
15,940.09
661.73
Telephone (Excluding Equipment Acquis.)
2,438.61
2,438.61
2,438.61
Water
5,662.04
5,662.04
4,032.09
1,629.95
Gas (Natural or Propane)
1,183.38
1,183.38
1,18338
Fuel Oil (Diesel Fuel)
4,957.05
42.95
5,000.00
42.95
4,957.05
Gasoline
2,442.12
2,442.12
2,442.12
Sewer Processing and Disposal
Salaries and Wages
4,520.70
4,520.70
4,520.70
Other Expenses
901.95
10,130.00
I 1,031.95
10,795.50
236.45
LANDFILL/ SOUD WASTE DISPOSAL COSTS:
"'
Landfill Fees:
\0
Other Expenses
42,869.67
2,830.85
45,700.52
29,503.89
16,196.63
CODE ENFORCEMENT AND ADM!NlSTRA TION:
Construction Inspector, Plumbing Inspector
and Code Enforcer
Salaries and Wages
4,668.47
4,668.47
4,668.47
Other Expenses
2 164.90
572.61
2 737.51
593.52
2 143.99
Total Operations Within "CAPS"
585,191.35
170,159.78
755,351.13
390,557.78
364,793.35
Contingent
579.75
5,000.00
5,579.75
5,130.85
448.90
Total Operations Including Contingent Within "CAPS"
585,771.10
175,159.78
760,930.88
395,688.63
365,242.25
Exhibit A-11
Page 6 of6
SCHE DUL E OF 2016 APPROPRJATION RE SERVES
BALANCE
BALANCE AFTER
PAIDOR
BALANCE
DEC. 31 2016
ENCUMBRA NCES
MODIFICATION
CHA RGED
LAPSED
STATUTORY EXP END ITURE S:
Contribution to:
Social Security System (0.A.S.I.)
$
2,792.06 $
$
2,792.06 $
$
2,792.06
Defined Contribution Retirement Program
47.56
47.56
47.56
Total General Appropriations for
Municipal Purposes Within "CAPS"
588 610.72
175,159.78
763,770 50
395,688.63
368,081.87
Operations Excluded from "CAPS"
Middlesex County Utilities Authority Sewerage Treatment
912.59
912.59
912.59
Stormwater Pollution Programs: NJDES/Stormwater Permit
Other Expense
3,000.00
3,000.00
3,000.00
Middlesex County Improvement Authority
(l:J
County Curbside Collection Program
9,805.82
9,805.82
9,790.38
15.44
0
Total Operations - Excluded from "CAPS"
13,718.41
13,718.41
9,790.38
3,928.03
Total General Appropriations
$
602 329.13 $
175.159.78 $
777 488.91
$
405 479.01
$
372 009.90
Ref
A
A
A-1
Accounts Payable
A-14
$
10,703.10
Disbursed
A-4
394,775.91
$
405,479.01
SCHEDULE OF DEFERRED CHARGES
BALANCE
DEC. 31,2016
Emergency - Hurricane Sandy
$
80 000.00
$
80 000.00
A
RAISED IN
CY 2017 BUDGET
$
80,000.00
$
80 000.00
A-3
- 81 -
Exhibit -A-12
BALANCE
DEC. 31,2017
$
$
A
Exhibit A-13
CURRENT FUND
SCHEDULE OF TAXES PAYABLE
Dec. 31, 2016
Taxes
Levied
Cash
Disbursements
Dec. 31, 2017
County - General ................... $
$ 5,385,830.30 $ (5,385,830.30) $
County - Open Space ..............
437,890.60
(437,890.60)
County - Added & Omitted .......
8,248.98
(8,248.98)
Local School District Taxes ......
23,955,459.00
(23,955,459.00)
Total. ................................ $
$ 29,787,428.88 $ (29,787,428.88) $
Ref.
A
A-l,A-7,A-15
A-4
A
- 82 -
Exhibit A-14
CURRENT FUND
SCHEDULE OF CHANGES IN VARIOUS ACCOUNTS PAY ABLES & RESERVES
Transfer from/(to)
Cash
Dec. 3 l, 2016
Budget
Receipts
Cash
Disbursements Adjustments
Dec. 31, 2017
Accounts Payable:
Vendor Accounts Payable .........
$
71,430.04
$
$
$
(24.30) $ 10,703.10 $
82,108.84
Marriage License Filing Fees .....
375.00
1,550.00
(2,100.00)
(175.00)
State Training Fees .................
462.00
11,857.00
(12,305.00)
14.00
Subtotal
72,267.04
13,407.00
{14,429.30}
10,703.10
81,947.84
'
00
Reserve for:
w
Codification of Ordinances ........
6,389.15
6,389.15
FEMA/NJDEP Buyout
171. 76
171.76
Master Plan ..........................
1,161.96
1,161.96
Tax Appeals .........................
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. ......
1,384,609.22 $ (300,000.00)
1,084,609.22
Subtotal
1,430,077.88
(300,000.00}
1,130,077.88
Total.. ....................................
$
1,502,344.92 $ (300,000.00} $
13,407.00 $ (14,429.30} $ 10,703.10 $ 1,212,025.72
Ref.
A
A-2,A-8
A-4
A-4
A- 11
A
Exhibit - A-15
SCHEDULE OF LOCAL DISTRICT SCHOOL TAX - DEFERRED SCHOOL TAXES
REF.
Balance - December 3 1, 2016
Deferred School Taxes
A
$ 11,743,634.00
Increased by:
Levy, School Year July I, 2017 to
June 30, 2018
A-7
24,347,829.00
36,091,463.00
Decreased by:
School Taxes Requirement -
Calendar Year Taxes Payable
A-l,A-13
23,955,459.00
Balance - December 3 I, 20 I 7
A
$ 12,136,004.00
Deferred School Taxes
Exhibit - A-16
SCHEDULE OF DUE FROM GENERAL CAPITAL FUND - GRANT FUND
Balance - December 31, 2016
A
$
23,775.00
Balance - December 31, 2017
A
$
23 775.00
- 84-
Exhibit - A-17
SCHEDULE OF STATE GRANTS RECEIVABLE
GRANTFUND
2017 BUDGET
BALANCE
REVENUE
COLLECTED
BALANCE
DEC,31,2016
REALIZED
2017
DEC. 31,2017
Alcohol Ed & Rehab Fund - Municipal Court
$
362.59 $
$
$
362.59
Forestry Grant Match
3,000.00
3,000.00
Middlesex County - Info. Assis & Transp. Assist -
Older American Act of 1965
2,914.00
2,914.00
Middlesex County Open Space
1,497,227.00
1,497,227.00
Municipal Alliance on Alcoholism and Drug Abuse
10,981.30
10,981.30
N.J. Alcohol Education & Rehabilitation - Municipal Court
64.34
64.34
(P
Body Armor Replacement Grant - CY
2,990.70
2,990.70
V1
Clean Communities Program
27,358.42
27,358.42
Community Development Block Grant
48,921.00
48,921.00
DMV Inspection Fines
2,635.00
2,635.00
Drunk Driving Enforcement Fund
3,821.85
3,474.81
347.04
Middlesex County - Info. Assis & Transp. Assist -
Older American Act of 1965
20,950.00
17,698.00
3,252.00
Municipal Alliance on Alcoholism and Drug Abuse
41,930.00
21,834.10
20,095.90
Total Federal and State Grants Receivable
$
1 514 484.89 $
148671.31 $
138 957.67 $
1 524 198.53
Ref.
A
A-18
A-18
A
Exhibit-A-18
SCHEDULE OF DUE FROM CURRENT FUND
GRANT FUND
REF.
Balance - December 31, 2016
A
$
471,489.73
Increased by:
Grants receivable collected
A-17
$ 138,957.67
Grants appropriated - Current Fund budget
A-19
148671.31
287 628.98
759,118.71
Decreased by:
Grants revenue - Current Fund budget
A-17
148,671.31
Grants expended
A-19
232 553.51
381,224.82
Balance - December 31, 20 I 7
A
$
377 893.89
- 86 -
SCHEDULE OF RESERVE FOR STATE GRANTS - APPROPRIATED
GRANTFUND
TRANSFERRED FROM
BALANCE
ENCUMBERED 2017BUDGET
PAIDOR
ENCUMBERED
BALANCE
DEC. 31 2017
DEC. 31 2017
DEC. 31 2016
DEC. 3! 2016
BY BUUUCl
CHARGED
Year 2005:
NJ_ Hepatitis "B" Grant
$
2 549.00 $
$
s
s
s
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
201 443.66
690.00
200 753.66
Subtotal
20146809
690.00
200,778.09
Year 2008·
County of Middlesex - Mountain View Park
7 032.27
2 526.48
540.00
6 286.48
2 732.27
Subtotal
7,032.27
2,526.48
540.00
6,286.48
2,73227
Year 2010:
0,
Municipal Alliance Alcohol and Drug Abuse
47 40
4740
"
Subtotal
47.40
47.40
Year 2011:
NJ. Clean Communities Grant
2,937.78
1,501.41
2,175.94
825.47
l,437 78
Drunk Driving Enforcement Fund
21,332.71
!69.00
2,762 06
2.95
18,736.70
Alcohol Education & Rehab
2,385 07
2,385.07
Body Ann or Replacement Fund
I 005.68
I 005.68
Subtotal
27,66!24
1,6704!
4,938.00
828.42
23,565.23
Year 2012:
Body Annor Replacement Grant - CY
399.98
399.98
Drunk Driving Enforcement Fund
l,!66.!4
240.00
l 99.20
726.94
Haz-Mat Grant
136.44
136.44
Middlesex County - Mountainview Park
119,386.51
119,386.51
N.J. Alcohol Education & Rehabilitation - Municipal Court
!6180
!61.80
NJ. Clean Communities Grant
l l,284.18
l l,284. !8
Older Americans Act - Infonnation Assist
!67.44
!67.44
Subtotal
I 32 702.49
240.00
199.20
!32,263.29
Year 2013:
Body Armor Replacement Grant - CY
1,686.68
l,686.68
Drunk Driving Enforcement Fund
4,699.42
4,699.42
NJ. Alcohol Education & Rehabilitation - Municipal Court
53.96
53.96
Subtotal
6,440 06
6,440.06
ExhbitA-19
Page 1 of2
ExhbitA-19
SCHEDULE OF RESERVE FOR STA TE GRANTS - APPROPRIATED
Page 2 of2
GRANT FUND
TRANSFERRED FROM
BALANCE
ENCUMBERED 2017BUDGET
PAID OR
ENCUMBERED
BALANCE
DEC. 31 2016
DEC. 31 2016
BY BUDGET
CHARGED
DEC. 31 2017
DEC. 31 2017
Year 2014:
Body Armor Replacement Grant - CY
1,01108
1,011.08
N.J. Alcohol Education & Rehabilitation - Municipal Court
52.77
52.77
Forestry Grant Match
875.00
2,125.00
2,125.00
875 00
N.J. Clean Communities Grant
21,766 90
20,040.00
1,726.90
Subtotal
23,705.75
2,125.00
22,165.00
3,665.75
Year 2015
Body Armor Replacement Grant - CY
2,946.00
2,946.00
Municipal Alliance on Alcoholism and Drug Abuse
925 75
350.49
575 26
Subtotal
3 871.75
350.49
3 521.26
Year2016·
(X)
Alcohol Education & Rehabilitation
362.59
362.59
(X)
N.J. Clean Communities Grant
39,795.19
39,795.19
Municipal Alliance on Alcoholism and Drug Abuse
20,965.00
20,965.00
Drunk Driving Enforcement Fund
3,602.18
3,330 98
271.20
DWI - Municipal Court
58.93
58.93
Body Armor Replacement Grant - CY
5,518.56
5,518.56
Middlesex County Open Space
1 444 727 00
52 500.00
151 37804
413 861.96
931 987.00
Subtotal
1,515,029.45
52,500.00
154,709.02
413,861.96
998,958.47
Year 2017:
Body Armor Replacement Grant - CY
2,990.70
2,990.70
Drunk Driving Enforcement Fund
3,821.85
3,82185
Clean Communities Grant
27,358.42
27,358.42
CDBG
48,921 00
48,921.00
OMV Inspection Fines
2,635.00
2,635.00
Municipal Alliance on Alcohol & Drug Abuse
41,930 00
41,930.00
N.J. Alcohol Education & Rehabilitation - Municipal Court
64.34
64.34
O!der Americans Act - Information Assist
20 950 00
20 950.00
Subtotal
148 671.31
48 92100
99,750.31
Total Federal and State Grants
s 1,920 507.50 s
58 821.89 $
148 671.31 $
232 553.51
$
42117606 $ 1,474,27113
Ref
A
A
A-18
A-18
A
A
SCHEDULE OF RESERVE FOR STATE GRANTS- UNAPPROPRIATED
GRANT FUND
BALANCE
BALANCE
DEC. 31,2016
DEC. 31,2017
Body Armor Replacement Grant
$
5,367.83
$
5,367.83
Clean Communities Program
23,307.90
23,307.90
Drunk Driving Enforcement Fund
I 744.50
I 744.50
$ 30,420.23
$
30,420.23
Ref.
A
A
- 89 -
Exhibit - A-20
TRUST FUND
- 90-
Exhibit - B- 2
ANALYSIS OF TRUST ASSESSMENT CASH AND INVESTMENTS
RECEIPTS
BALANCE
ASSESSMENTS
BALANCE
DEC.3L20lfi
ANDLIEJ'IS
DEC. 31 201]
Fund Balance
$
5,565.77 $
$
5,565.77
Assessments Receivable
(1,470.00)
(1,470.00)
Due to Current Fund
14,128.04
254.43
14,382.47
Due to General Capital Fund
7 164.08
7 164.08
$
25,387.89 $
254.43
$
25,642.32
Ref.
B
B-5
B
'
VO
.....
( ) Denotes Deficit or Deduction
Exhibit - B-3
SCHEDULE OF ASSESSMENT LIENS
TRUST ASSESSMENT FUND
ORD
NO.
1106
IMPROVEMENT
DESCRJPTION
BALANCE
BALANCE
BALANCE
PLEDGED TO
DEC.31,2016
DEC.JI 2017 GENERALCAPITAL
Curbs and Gutters
$
1 470.00
$
1 470.00
$
1.470.00
Ref.
B
B
Exhibit - B-4
SCHEDULE OF DUE TO GENERAL CAPITAL FUND
ASSESSMENT TRUST FUND
Balance- December 31, 2016
B
$
7,164.08
Balance-December 31, 2017
B
$==7="=
16=4=.0=8=
Exhibit - B-5
SCHEDULE OF DUE TO CURRENT FUND
ASSESSMENT TRUST FUND
REF.
Balance - December 31, 2016
B
$
14,128.04
Increased by
Cash Receipts
B-2
254.43
Balance - December 31, 2017
B
$
14 382.47
- 92 -
Exhibit B-6
TRUST FUNDS
Page 1 of 3
SCHEDULE OF CASH AND RESERVE ACTIVITY
Balance
.................. Cash ..
Balance
Dec.31.2016
Receipts
Disbursements
Adjustments
Dec.31.2017
Assessment Tru st
Assessments Liens Receivable ..
$
(1,470.00)
$
(1,470.00)
Due to General Capital Fund ..
7,164.08
7,164.08
Due to Current Fund ..
14,128.04
254.43
14,382.47
Fund Balance ..
5,565.77
5,565.77
Total
25,387.89
254.43
25,642.32
Animal Control:
Due Current Fund ..
20,793.32
6,863.34
27,656.66
Due To NJ - State License Fees ..
960.60
(956.40)
4.20
Animal Control Reserves ..
17,002.40
6,916.40
(600.26)
(6,863.34)
16,455.20
Total
37,795.72
7,877.00
(1,556.66)
44,116.06
Payroll:
Deductions Payable (Net Change) ..
129,491.21
(1,582.82)
127,908.39
Total
129,491.21
(1,582.82)
127,908.39
Developers' Escrow:
Developer's Escrow Funds ..
617,327.49
285,532.65
(426,603.93)
476,256.21
Developer's Escrows - Water & Soil ...
19,962.00
100.00
20,062.00
Total
637,289.49
285,632.65
(426,603.93)
496,318.21
Public Assistance:
Reserve for Public Assistance ..
9,838.23
9804
(98.31)
9,837.96
Total
9,838.23
98.04
(98.31)
9,837.96
- 93 -
TRUST FUNDS
SCHEDULE OF CASH AND RESERVE ACTIVITY
Balance
Dec.31.2016
.. Cash..
Balan ce
Receipts
Disbursements
Adjustments
Dec.31.2017
Community Development Blk Grant:
Due from Midd. Cty. CDBG ..
Due to Current Fund ....
Community Development Blk Grant:
Year 2012/20l3 Reserves
Senior Center Improvements
Manh ole Retrofit
Community Development Blk Grant:
Year 2013/2014 Reserves
Lincoln Fire House Doors ..
Passive Improvements ..
Comm unity Development Blk Grant:
Year 2015/2016 Reserves
ADA Borough Hall Improvements
Community Development Blk Grant:
Year 2016/2017 Reserves
Senior Center Improvements
Senior Nutrition Project
Senior Van Driver
Code Enforcement
Senior Center Coordinator
Community Development Blk Grant:
Year 2017/2018 Reserves
Senior Center Improvements
Senior Nutrition Project
Senior Van Driver
Code Enforcement
Senior Center Coordinator
{92,760.41)
12,294.00
1,877.76
139.00
800.00
365.15
28,363.50
15,346.00
7,500.00
7,500.00
7,500.00
11,075.00
74,232.50
8,200.00
(12,294.00)
(28,363.50)
{8,200.00)
{7,500.00)
{7,500.00)
{7,500.00)
(11,075.00)
(48,921.00)
15,346.00
7,500.00
7,500.00
7,500.00
ll,075.00
(67,448.91)
8,200.00
1,877.76
139.00
800.00
365.15
7,146.00
15,346.00
7,500.00
7,500.00
7,500.00
11,075.00
Total
(0.00)
(0.00)
82,432.50
(82,432.50)
-94-
Exhibit B-6
Page 2 of 3
TRUST FUNDS
SCHEDULE OF CASH AND RESERVE ACTIVITY
Balance
Dec.31.2016
....... ,, .... Cash ....
Balance
Dec.31.2017
Receipts
Disbursements Adjustments
Other Trust Funds:
Due from Current Fund .
$ (399,388.85)
(66,241.52)
44,490. l I
$ (421,140.26)
Due from General Capital Fund ..
(258,157.99)
(264,629.02)
(522,787.01)
Reserve for Unemployment Insurance ..
212,120.77
2, l 13.43
(6,250.37)
207,983.83
Miscellaneous Reserves:
Commodity Resale Program -
Gasoline - Borough of Dunellen ...
157,288.25
59,535.69
(69,322.43)
147,501.51
Developers Escrow Unclaimed Funds
12,474.42
12,474.42
Development
21,751.4[
21,751.41
Federal Asset Forfeitures ..
4,661.93
46.73
4,708.66
Municipal Law Enforcement Trust.
9,390.09
93.71
(500.00)
8,983.80
Older Americans Act ..
6,503.64
5,800.50
(5,373.50)
6,930.64
Outside Police Services ..
24,412.09
478,905.95
(475,119 81)
28,198.23
Police Found Money ..
161.66
899.26
(444.00)
616.92
Parking Offense Adjudication Act ...
3,308.50
248.00
3,556.50
Police Application Fees ...
318.85
318.85
Public Defender Fees ..
7,331.50
8,485.00
(7,850.00)
7,966.50
Police Communities Education ....
1,817.40
800.00
(150.00)
2,467.40
Premium on Tax Sale ..
210,500.00
223,700.00
(155,700.00)
278,500.00
Police Memorial FW1d ..
50.00
50.00
Police Donations ..
5,260.41
[00.00
(l 02.20)
5,258.21
Police - DARE ..
1,635.00
1,635.00
Police 911 Fund ..
19.84
19.84
Recreation Fund ..
79,118.21
83,067.38
(80,313.69)
81,871.90
Recycling Trust ..
37,580.07
56,261.96
(63,630.43)
30,211.60
Restitution ..
4,135.56
4,135.56
Sanitary Sewer ..
880.00
880.00
Senior Assisted Transportation ..
3,762.94
1,309.00
5,071.94
Special Inspection ..
3,672.28
3,672.28
Street Opening Deposits ..
96,491.05
30,250.00
(5,625.00)
121,116.05
Third Party Outside Lien Redemption
236,264.12
(145,997.83)
90,266.29
Tree Replacement Fund ...
9,825.50
9,825.50
UFC Dedicated Penalties ..
53.86
53.86
Uniform Fire Safety Penalties ....
12,405.53
12,405.53
100th Anniversary... .
2,993.27
2,993.27
Total
486,889.90
907,126.50
(1,236,518.17)
157,498.23
Total
$ 1,326,692.44 $ 1,283,42112 $ (1,748,792.39) $
$ 861,32117
&£
B
B
License Fees Collected:
Year
Amount
2015
$
8,461.20
2016
7 994.00
$
16 455.20
Note: R.S. 4:19.11
.. 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."
- 95 -
Exhibit B-6
Page 3 of 3
GENERAL CAP IT AL FUND
-96-
SCHEDULE OF GENERAL CAPITAL FUND
CASH AND INVESTMENTS - TREASURER
REF.
Balance - December 31, 2016
C
$ 1,028,015.02
Increased by Receipts:
Grants, Loans and Other Receivables
C-4
300,000.00
Deferred Charges - Unfunded
C-6
285,000.00
lnterfunds Received
C-7
805,054.43
Capital Improvement Fund
C-14
80 000.00
1 470 054.43
2,498,069.45
Decreased by Disbursements:
Interfunds Disbursed
C-7
300,000.00
Improvement Authorizations
C-8
2,198,069.45
2 498 069.45
Balance - December 31, 2017
C,C-3
$
• 97 -
Exhibit - C-2
Exhibit - C- 3
GENERAL CAPITAL FUND
ANALYSIS OF CASH AND INVESTMENTS
BALANCE
BALANCE
DECEMBER
DECEMBER
31 2016
31 2017
Grants Receivable
$ (1,101,589.42)
$
(1,101,589.42)
Due from Assessment Trust
(7,164.08)
(7,164.08)
Due to Current Fund
240,425.41
Due to Grant Fund
23,775.00
23,775.00
Due to Trust Fund
258,157.99
522,787.01
Improvement Authorizations Funded
1,691,145.21
1,785,549.58
Improvement Authorizations Expended
(583,684.30)
(2,985,061.94)
Unexpended Proceeds of BAN's Issued
Reserve for Encumbrances
455,744.31
1,409,753.13
Reserve for:
Capital Improvement Fund
221,939.58
41,834.58
Insurance Refund
4,838.08
4,838.08
To Pay Debt Service
64,317.08
64,317.08
Fund Balance
535.57
535.57
$ 1,028,015.02
$
Ref.
C-2
C-2
- 98-
Exhibit - C-4
SCHEDULE OF VARIOUS GRANTS LOANS AND OTHER RECEIVABLES
Balance
Balance
Ordinance
December 31,
December 31,
Number
2016
Increases
Decreases
2017
Receivables:
New Jersey Environmental Infrastructure Trust
1611-04
$
140,593.00
$
140,593.00
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 of NJ DCA - Livable Communities
1688-06
130.00
130.00
Federal Homeland Security
1688-06
8,805.00
8,805.00
State of NJ DOT - Beechwood Ave.
1715-07
69,476.44
69,476.44
State of NJ DOT - Greenbrook Rd
1736-08
56,250.00
56,250.00
'-D
'-D
State of NJ DOT- Beechwood Ave.
1772-10
16,361.77
16,361.77
State of NJ DOT - Parker Street
1797-11
15,238.34
15,238.34
State of NJ OEM
1808-12
140,250.00
140,250.00
Federal Emergency Management Agency (FEMA)
1808-12
26,297.55
26,297.55
State of NJ DOT- Howard Avenue
1818-12
1,441.57
1,441.57
State of NJ DOT- Fairview Avenue
1842-13
10,638.30
10,638.30
Various Capital Improvements (MCIA)
1855-14
125,000.00
125,000.00
State of NJ DOT -Marlborough Avenue
1857-14
300,000.00
300,000.00
State of NJ DOT-Warrenville Road
1893-16
353,700.00
353,700.00
State of NJ DOT -South Avenue
1909-17
$
400,000.00
$
300,000.00
100,000.00
$
1 326 497.97
$
400 000.00
$
300 000.00
$
I 426,497.97
Ref.
C
C-13
C-2
C
Exhibit C-5
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - FUNDED
Serial
Infrastructure
Green Acres
MCIA
Total
Bonds
Trust
Loans
Loans/Leases
Ref.
Balance - December 31, 2016
C
$
13,596,684.52 $
9,391,000.00 $
722,229.16 $
89,633.23 $
3,393,822.13
Decreased by:
Serial Bonds/Loans Paid From
C-9,C-10
Budget Appropriation
C-11,C-12,C-15
1,895,695.35
959,000.00
76,877.35
22,262.88
837,555.12
De-Obiligation
C-15
55,050.80
e-'
Balance - December 31, 2017
C
$
11,645,938.37 $
8,432,00Q.OQ_ $
590,301.01
$
67,370.35 $
2,556,267.01
0
0
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
Exhibit- C-6
ANALYSIS OF BALANCE - DECEMBER 31 2017
UNEXPENDED
BALANCE OF
ORD
BALANCE
2017
2017
BALANCE
IMPROV.
NO.
IMPROVEMENT DESCRIPTION
DEC 31 2016
AUTHOR
FUNDING
DEC 31 2017
EXPENDED
AUTHOR
General Improvements
1808-12
Acq and Demolition of Certain Flood Prone Properties $
166,547.55 $
$
$
166,547.55 $
78,131.56 $
88,415.99
1857-14
Improvements to Marlborough Ave
30,400.00
30,400.00
4,823.27
25,576.73
1893-16
Various Capital Improvements
989,780.00
989,780.00
860,242.33
129,537.67
1900-16
Milling and Paving of Various Roads
285,000.00
285,000.00
1907-17
Sanitary Sewer Improvements
2,327,500.00
2,327,500.00
161,935.55
2,165,564.45
1909-17
South Ave Improvements
400,000.00
300,000.00
100,000.00
100,000.00
1920-17
2017 Capital Improvements
1,745,625.00
1,745,625.00
1,239,170.23
506,454.77
1922-17
Warrenville Rd Improvements
380,000.00
380,000.00
198,755.00
181,245.00
1924-17
George Ave Improvements
488,870 00
488,870.00
442,004.00
46,866.00
$
1 471 727.55 $
534199500 $
585 000.00 $
6 228 772.55 $
___ 2,985 061.94 $
3,243,660.61
Ref
C
C-8
C-2
C
'
>--'
0
>--'
Exhibit - C - 7
SCHEDULE OF INTERFUNDS
GENERAL CAPITAL FUND
ASSESSMENT
TRUST-
GRANT
Ref.
JOTAL
CURRENT
TRUST
OTHER
FUND
Balance - December 31, 2016
Due From
C
$
7,164.08 $
$
7,164.08 $
$
Due To
C
281,932.99
258,157.99
23,775.00
Increased by:
Cash Received
C-2
805,054.43
540,425.41
264,629.02
'
>-'
0 Subtotal
805,054.43
540,425.41
264,629.02
N
Decreased by:
Funds Disbursed
C-2
300 000.00
300 000.00
300,000.00
300,000.00
Balance - December 31, 2017
Due From
C
7,164.08
7,164.08
Due To
C
$
786,987.42 $
240,425.41
$
$
522,787.01
$
23,775.00
SCHE DULE OF JTv!P ROYEM ENT AlJTH ORJZAT!ONS
ExhibitC-8
RESERVE FO R
RESERVE FO R
ORD
ORDINANCE
BALANCE DEC. 31 2016
2017
ENCUMBR.
PAID OR
ENCUMBR
BALANCE-DEC. 31 2017
!ill
JTv!PROVEMEfil DESCRIPTION
DATE
AMOUNT
FUNDED
UNF![NDED
AUHTORJZA TIO NS
12131/)6
CHARGED
12/31117
Eill!.!2!ill
UNFUNDED
Genera! Improvements
1611-04
Improvement to the Sanitary Sewer System
(Infrastructure Trust $1,689,655)
07/13/04
1,627,000.00
$
!76,527.28
$
$
$
$
$
$
176,527.28
1687-06
Various Capital Improvements (NJDOT- $200,000)
10/20/06
1,358,900.00
3,075.53
3,075.53
51
Acq and Demolition of Certain Flood Prone Properties
03/27/12
2,540,000.00
88,415.99
88,415.99
1818-12
Various Capital Improvements
08/28/12
1,116,450.00
57,902.61
576.67
57,325.94
1832-13
Various Capital Improvements (MCIA)
07/26/13
3,081,700.00
271,061.57
!0,500.00
25,229.80
1,475.10
254,856.67
1842-13
Reconstruction ofFairview Ave (NJDOT-$300,000)
08127/13
380,000.00
51,088.98
12,973.85
64,062.83
1855-14
Various Capital Improvements (MCIA)
09/09114
888,325.00
346,436.56
800.00
12,330.62
334,905.94
1857-14
Improvements to Marlborough Ave (NJDOT- $300,000)
09/09/14
332,000.00
18,477.01
7,099.72
25,576.73
1879-!5
Various Capital Improvements (MCIA)
07/19/15
1,176,500.00
467,247.87
13,029.10
37,686.21
10,760.00
431,830.76
1893-!6
Various Capital Improvements
08/09/16
1,393,000.00
726,332.23
355,619.11
873,150,03
79,263.64
129,537.67
1899-!6
Various Capital Improvements
)0/l l/16
614,202.14
317,804.81
19,349.15
168,175.72
37,455.33
131,522.91
1900-16
Milling and Paving of Various Roads
JO/l i/16
300,000.00
54,818.02
36,373.38
91,191.40
1907-17
Sanitary Sewer Improvements
02/)4/17
2,450,000.00
2,450,000.00
194,682.44
89,753.11
2,165,564.45
1909-17
South Ave Improvements
02/14/17
400,000.00
400,000.00
59,749.68
240,250.32
100,000.00
}920-17
20! 7 Capital Improvements
05/23/l 7
1,837,500.00
1,837,500.00
670,292.49
660,752.74
506,454.77
1922-17
Warrenville Rd Improvements
07/25/17
400,000.00
400,000.00
156.772.46
61,982.54
181,245.00
1924-!7
George Ave Improvements
09/19/17
514,600.00
514 600.00
467 734.00
-- _4_§,_$_66. 00
'
$ 1 691 145.21
S 888 043.25
$
5 602.100.00
$
455 744.31
$ 2,198,0§9,4?
___ J_ 1,409,753.13
$ __ Ll~549 58
$ 3,24J,!'i§_Q§1_
.....
0
Ref
C
C
C
0
C
C
C
w
Deferred Charges to Fu1ure Taxation Unfunded
C- 6
$
5,34),995.00
Capital Improvement Fund
C-14
260 105.00
$
_?.,_6_Qb)OOOO
SCHEDULE OF GENERAL SERJAL BONDS
Exhibit - C-9
MATURJTIES OF BONDS
DATE OF
ORJGINAL
OUTSTANDING - DEC. 31.2017 INTEREST
BALANCE
BALANCE
ISSUE
ISSUE
ISSUE
DATE
AMOUNT
RATE
DEC. 31, 2016
DECREASE
DEC. 31. 2017
General Improvement Bonds of2010
02/15/10
$ 9,865,000.00
02/15/18
$ 700,000.00
3.000%
$
6,765,000.00
$ 700,000.00
$ 6,065,000.00
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%
02/15/24
800,000.00
3.625%
02/15/25
790,000.00
4.000%
General Obligation Bonds of2015
07/16/15
2,878,000.00
07/15/18
266,000.00
1.500%
2,626,000.00
259,000.00
2,367,000.00
07/15/19
273,000.00
2.000%
.....
07/15/20
283,500.00
2.000%
0
""'
07/15/21
290,500.00
2.000%
07/15/22
301,000.00
2.000%
07/15/23
308,000.00
2.000%
07/15/24
318,500.00
2.500%
07/15/25
326,500.00
2.500%
$
9 391 000.00
$ 959 000.00
s 8 432,000.00
Ref.
C
C-5
C
SCHEDULE OF CAPITAL LEASES PAY ABLE
Exhibit - C-10
MIDDLESEX COUN TY IMPROVEMENT AUTHORITY
AMOUN T
OF
FEES
INTEREST MATURITIES OF LEASES
BALANCE
BALANCE
PROJECT DESCRIPTION
LOAN
PAYABLE
RATE
DATE
AMOUN T
DEC. 31,2016
DECREASED
DEC. 31,20!7
Capital Equipment - 2008
$
572,745.83
$
14,522.02
4.200%
09/15/18
$ 66,833.58
$
131,339.38
$
64,505.80
$
66,833.58
Capital Equipment - 2013
2,900,567.38
56,064.13
4.000%
08/15/18
396,999.21
1,808,536.90
381,537.69
1,426,999.21
4.000%
08/15/!9
190,000.00
4.000%
08/15/20
200.000.00
4.000%
08/15/21
205,000.00
4.000%
08/15/22
215,000.00
4.000%
08/15/23
220,000.00
Capital Equipment- 2014 (Lease)
120,994.00
910.59
3.000%
09/15/18
24,715.15
74,167.06
23,995.30
50,171.76
>--'
3.000%
09/!5/19
25,456.61
0
(Jl
Capital Equipment - 2014 (Loan)
738,861.92
5,560.58
3.000%
09/15/18
150,925.55
452,908.53
146,529.66
306,378.87
3.000%
09/15/19
155,453.32
Capital Equipment - 2015
1,146,063.89
6,123.76
3.000%
09/15/!8
227,616.28
926,870.26
220,986.67
705,883.59
4.000%
09/15/19
234,444.76
4.000%
09/15/20
243,822.55
$
3.393,822.13
$
837 555.12
$
2 556,267.01
Ref.
C
C-5
C
SCHEDULEOFLOANSPAYABLE
NEW JERSEY 1987 GREEN TRUST FUND
PAYMENT
NUMBER
DATE OF
PAYMENT
INTEREST
PAYMENTS
PRINCIPAL
PAYMENTS
Payments
Made in 2017
36
June2,2017 $
107 .86
$
IO 786.43
_..---'-'-''"-'--'-----
$
107 .86 =$=====10='=78=6=.4=3=
C-5
REF.
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
-106-
Exhibit - C-11
BALANCE-
LOANS
PAYABLE
SCHEDULE OF LOANS PAYABLE
NEW JERSEY GREEN TRUST FUND - 1989
Exhibit - C-12
BALANCE-
DATE OF
INTEREST
PRINCIPAL
LOANS
PAYMENT
PAYMENTS
PAYMENTS
PAYABLE
$
67,370.35
January 15, 2018 $
673.70
$
5,824.44
61,545.91
July 15, 2018
615.46
5,882.68
55,663.23
January 15,2019
556.63
5,941.51
49,721.72
July 15, 2019
497.22
6,000.93
43,720.79
January 15, 2020
437.21
6,060.94
37,659.85
July 15, 2020
376.60
6,121.55
31,538.30
January 15, 202 l
315.38
6,182.76
25,355.54
July 15, 2021
253.56
6,244.59
19,110.95
January 15, 2022
191.1 l
6,307.03
12,803.92
July 15, 2022
128.04
6,370. l 0
6,433.82
January 15, 2023
64.30
6,433.82
PAYMENT
NUMBER
29
30
31
32
33
34
35
36
37
38
39
Total Balance Due -
Principal and Interest
$
4, l 09.2 l
$
67,370.35
Payments Made
Made in 2017
27
28
788.47
$
5,709.68
__
_;.;73:...;l"'.3'-'7-
5 7 66. 77
January 15, 2017 $
July 15, 2017
REF.
$
1,519.84
$
11,476.45
C-5
Details as to Loan Repayments:
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
-107-
Exhibit - C-13
SCHEDULEOF VARIOUS RESERVES
Ordinance
Balance
Balance
Number
December 31, 2016
Increases
Decreases
December 31, 2017
Reserve for:
Cash or Appropriated Reserves:
Insurance Refund - Landfill (Payment of Bonds)
$
4,838.08
$
4,838.08
Payment of Debt Service
64,317.08
64,317.08
Subtotal
69,155.16
69,155.16
Grants, Loans & Other Receivables:
New Jersey Environmental Infrastructure Trust
1611-04
58,305.00
58,305.00
Middlesex County - Cedar Ave.
1643-05
56.00
56.00
State of NJ OEM
1808-12
98,598.63
98,598.63
Federal Emergency Management Agency (FEMA)
1808-12
67,948.92
67,948.92
State of NJ DOT -South Avenue
1909-17
400,000.00
300,000 00
100,000.00
.....
0
ff)
Subtotal
224,908.55
400,000.00
300,000.00
324,908.55
$
294 063.71
$
400 000.00
$
300 000.00
$
394,063.71
Ref.
C
C-4
C-6
C
SCHEDULE OF RESERVE FOR
CAPITAL IMPROVEMENT FUND
Balance- December 31, 2016
C
Increased by:
Budget Appropriation
C-2
Decreased by:
Appropriated to Finance Improvement
Authorizations
C-8
C
Balance - December 31, 2017
-109-
Exhibit - C-14
$
221,939.58
80 000.00
301,939.58
260 105.00
$
41,834.58
Exhibit • C-15
SCHE DUL E OF LOANS PAYABLE
NJ ENVfRONME NT AL lNF RA STUR CTURE TR UST LOAN AND FUND LOAN PAY AB LE
NE T
NET
BAL ANCE-
PRIN CIPAL
BALANCE-
PAYME NT
DATE OF
PRIN CIPAL
INT ERE ST
SAVINGS
SAVINGS
TOTAL
TRUST LOAN
DATE OF
PAYME NTS
FUND LOAN
NUMB ER
COUP ON
PAYME NT
PAYME NTS
PAYME NT S
PRJNCfPAL
fNT ERE ST
PAYME NTS
PAYABLE
PAYME NT
ONL Y
PAYAB LE
NJ Infrastructure Trust Loan:
NJ Infrastructure Fund Loan:
$ 400,000.00
$ 3[0,605.98
26
02/01/18
$
9,553. I3
$
1,632.30
$
7,920.83
400,000.00
02/01118
$
6,204.66
304,40132
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
02/01/19
5,392.79
260,329.39
29
5.000%
08/0[/19
50,000.00
8,303. I3
12,345.52
1,331.48
44,626.13
300,000.00
08/0 l/19
37,867.28
222,462.11
30
02/01/20
7,053.13
1,027.67
6,025.46
300,000.00
02/01/20
4,580.93
217,88l.!8
31
5.000%
08/01/20
55,000.00
7,053.13
13,041.88
1,029.49
47,981.76
245,000.00
08/01/20
40,302.57
177,578.61
32
02/01/21
5,678.13
701.36
4,976.77
245,000.00
02/01/21
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
02/01/22
4,303.13
359.84
3,943.29
190,000.00
02/01/22
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
'
37
4.250%
08/01/23
65,000.00
2,803.13
67,803.13
65,000.00
08/01/23
33,050.46
55,050.80
.....
.....
38
02/01/24
1,421.88
1,421.88
65,000.00
02/01/24
55,050.80
0
39
4.375%
08/01/24
65,000.00
1,421.88
66,421.88
08/01/24
55,050.80
Total Due
Principal
$ 400 000.00
Principal Only
_J 255,555.18
Interest
$ 78,231.32
Savings Credits
$ 65 254.17
$ 10 112.84
Principal and Interest
$ 402,864.31
Payments
NET
Payments
Made in
SAVINGS
Made in
2017
PRINCIPAL
Wl
24
02/01/17
02/01/17
$
6,935.33
25
08/01/17
.J. 45,000.00
$ ll,220.35
08/01/17
36,162.37
$ 45 000.00
$ 11 220.35
$
43 097.70
REF.
C-5
C-5
C-5
De-Obligaated
$
55 050.80
C-5
BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
ORD.
BALANCE
AUTHORIZED
NUMBER
IMPROVEMENT DESCRIPTION
DEC. 31, 2016
2017
General:
1808-12
Acq and Demolition of Certain Flood Prone Properties
$
166,547.55
1857-14
Improvements to Marlborough Ave
30,400.00
1893-16
Various Capital Improvements
989,780.00
1900-16
Milling and Paving of Various Roads
285,000.00
1907-17
Sanitary Sewer Improvements
2,327,500.00
1909-17
South Ave Improvements
400,000.00
1920-17
2017 Capital Improvements
1,745,625.00
1922-17
Warrenville Rd Improvements
380,000.00
1924-17
George Ave Improvements
488,870.00
$
1,471,727.55
$
5 341,995.00
""'
""'
""'
Ref.
Exhibit-C-16
2017
BALANCE
FUNDING
DEC. 31, 2017
$
166,547.55
30,400.00
989,780.00
285,000.00
2,327,500.00
300,000.00
100,000.00
1,745,625.00
380,000.00
488 870.00
$
585,000.00
$
6,228,722.55
C
SWIMMING POOL UTILITY FUND
-112-
Exhibit - D-5
SCHEDULE OF SWIMMING POOL UTILITY CASH AND INVESTMENTS
TREASURER
REF.
OPERA TING FUND
CAPITAL FUND
SNACK BAR ACCOUNT
Balance - December 31, 2016
D
$280,975.38
$130,485.78
$3,003.47
Increased by Receipts:
Membership Fees
D-3
276,587.50
Miscellaneous Revenues
D-7
96,662.?I
Snack Bar Operation
D-12
25,496.00
Due to Current Fund
D-13
1,775.38
78.79
Transfer from Snack Bar Account
D-5
9,445.48
384,471.07
25,574.79
""
""
665,446.45
130,485.78
28,578.26
w
Decreased by Disbursements:
Budget Appropriations
D-4
432,085.90
Accounts Payable
D-10
425.00
Appropriation Reserves
D-11
5,168.36
Snack Bar Operations
D-12
16,050.52
Due to Current Fund
D-13
1,849.51
75.51
Accrued Interest
D-19
22,222.50
Transfer to Operating Fund
D-5
9,445.48
461,751.27
-
25,571.51
Balance - December 31, 2017
D
$203,695.18
$130,485.78
$3,006.75
Exhibit - D-6
ANALYSIS OF SWIMMING POOL CAP IT AL
CASH AND INVESTMENTS
Capital Improvement Fund
Improvement Authorizations Funded
Improvement Authorizations Unfunded
Reserve for Encumbrances Payable
Due (from)/to Swimming Pool Operating Fund
Fund Balance
BALANCE
BALANCE
DEC. 31,
DEC. 31,
2016
2017
$
7,730.10
$
7,730.10
51,651.79
51,651.79
(156,330.00)
(156,330.00)
64,039.99
64,039.99
160,774.90
160,774.90
2 619.00
2 619.00
$130485.78
$ 130 485.78
Ref.
D
D
-114 -
Exhibit - D- 7
SCHEDULE OF MISCELLANEOUS RECEIPTS
SWIMMING POOL UTILITY OPERATING FUND
YEAR2017
Miscellaneous (Net of Refunds):
Interest Income
$
2,045.71
Guest Admissions
31,613.00
Swim Classes Registration
26,595.00
Long Course
23,240.00
Swim Team Membership
7,875.00
Aquacize
1,880.00
Synchro Membership
1,496.00
Party Fees
1,000.00
Syncro Show
180.00
Weekly Passes
60.00
Miscellaneous Income
678.00
Subtotal
D-3,D-5
96,662.71
Food Concession
D-3,D-12
9 445.48
$
106,108.19
- 115 -
Exhibit - D-8
SCHEDULE OF FIXED CAPITAL
SWIMMING POOL UTILITY CAPITAL FUND
BALANCE
BALANCE
DEC.31,
DEC. 31,
ACCOUNT
2016
2017
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
149 270.00
149,270.00
$ 666 291.56
$ 666,291.56
REF.
D
D
Exhibit - D-9
SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETE
SWIMMING POOL UTILITY CAPITAL FUND
BALANCE
BALANCE
IMPROVEMENT
ORDINANCE
DEC. 31,
DEC. 31,
ORD.NO.
DESCRIPTION
DATE
AMOUNT
2016
2017
177!-IO Swim Pool Improvements 07/27/10 $ 350,000.00
$
350,000.00
$ 350,000.00
!852-14 Swim Pool Improvements 06/24/!4
1,300,000.00
1 300 000.00
1 300 000.00
$ 1,650,000.00
$ 1,650,000.00
D
D
Exhibit - D-l 0
SCHEDULE OF ACCOUNTS PAY ABLE
SWIMMING POOL UTILITY FUND
Balance - December 31, 20 l 6
D
$
34,234.50
Increased by:
Charges from Approp. Reserves
D-1 l
425.93
Balance- December 31, 2017
D-5
D
- 116-
34,660.43
425.00
Decreased by:
Cash Disbursements
$
34 235.43
Exhibit - D-11
SCHEDULE OF 2016 APPROPRIATION RESERVES
SWIMMING POOL UTILITY OPERATING FUND
BALANCE
DECEMBER 31, 2016
BALANCE
APROPRIATION
RESERVE FOR
AFTER
PAID OR
BALANCED
RESERY:ES
ENCUMBRA__NCES
TRANSEERS
CHARGED
LAPSED
Operations:
Salaries and Wages
$
8,772.53
$
$
8,772.53
$
$
8,772.53
Other Expenses
3,622.17 .
6,093.26
9,715.43
__
5,594.29
4,121.14
Total Operations
12,394.70
6,093.26
18,487.96
5,594.29
12,893.67
.....
Deferred Charges and Statutory Expenditures
.....
Contribution to:
"
Social Security System
282.83
282.83
282.83
Total Deferred Charges and
Statutory Expenditures
282.83
-
282.83
282.83
$
12 677.53
$
6,093.26
$
18770.79 $
5 594.29
$
13 176.50
REF.
D
D
D-1
Cash Disbursements
D-5
$
5,168.36
Accounts Payable
D-10
425.93
$
5,594.29
SCHEDULE OF RESERVE FOR SNACK BAR OPERATIONS
SWIMMING POOL UTILITY OPERA TING FUND
Increased by:
Receipts from Sales
Decreased by:
Transfer to Miscellaneous Revenues
Purchases
D-5
D-3, D-7
D-5
9,445.48
16 050.52
-118 -
Exhibit - D-12
$
25,496.00
$
25 496.00
Exhibit - D-13
SCHEDULE OF INTERFUNDS RECEIVABLE/PAYABLE
SWIMMING POOL UTILITY OPERA TING FUND
Balance - December 31, 2016
Due from
Due to
SWIMMING
POOL
CURRENT
REF.
Total
CAPITAL
FUND
D
$160,774.90
$
160,774.90
147.03
$
147.03
Increased by:
Interest earned on investments
Interest earned on investments - snack bar
Balance - December 3 I, 20 I 7
Due from
Due to
D-5
1,775.38
1,775.38
D-5
78.79
78.79
162,776.10
160,774.90
2,001.20
D-5
1,849.51
1,849.51
D-5
75.51
75.51
D
$160,774.90
$
160,774.90
D
76.18
$
76.18
Decreased by:
Interest earned on investments
Interest earned on investments - snack bar
-119 -
SCHEDULE OF CAPITAL IMPROVEMENT FUND
SWIMMING POOL UTILITY CAPITAL FUND
Balance - December 31, 2016
D
Balance - December 31, 2017
D
SCHEDULE OF RESERVE FOR AMORTIZATION
SWIMMING POOL UTILITY CAPITAL FUND
Balance - December 31, 20 I 6
D
Increased by:
Bonds Paid by Budget Appropriation
D-20
D
Balance - December 31, 2017
-120-
Exhibit - D-14
$
7,730.10
$
7,730.10
Exhibit - D-15
$774,291.56
111,000.00
$ 885,291.56
ORD.NO.
1771-10
1852-14
Exhibit - D-16
SCHEDULE OF DEFERRED RESERVE FOR AMORTIZATION
SWIMMING POOL UTILITY CAPITAL FUND
IMPROVEMENT
DA TE OF
DESCRIPTION
ORD.
Swim Pool Improvements
07/27110
Swim Pool Improvements
06/24/14
BALANCE
DEC. 31,
2016
$ I 00,000.00
65,000.00
BALANCE
DEC. 31,
2017
$ 100,000.00
65 000.00
$165,000.00
$ 165 000.00
D
D
SCHEDULE OF DUE TO SWIMMING OPERA TING FUND
SWIMMING POOL UTILITY CAPITAL FUND
Balance - December 31, 2016
D
Balance - December 31, 2017
D
-121-
Exhibit - D-1 7
$ 160,774.90
$ 160 774.90
ORD.
NO.
IMPROVEMENT DESCRIPTION
General Improvements:
1771~10 Swim Pool Improvements
I 852-14 Swim Pool Improvements
'
>-'
N
N
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
SWIMMING POOL UTILITY CAPITAL FUND
DATE
FUNDED
BALANCE
DEC 31, 2016
UNFUNDED
DEC 31, 2016
DEC 31 2017
FUNDED
ORDINANCE
AMOUNT
07127/10 $ 350,000.00
06124/14
1,300,000.00
$ 51 651.79
ENCUMB
ENCUMB
UNFUNDED
$ 93,670.00
$
64 039.99
$ 64 039.99
$ 51 651.79
Exhibit - D-18
BALANCE
DEC 31, 2017
$ 93,670.00
$ 51651.79
$ 93.670.00
$
64039.99
$ 64039.99
$ 51651.79
$ 93,670.00
Ref.
D
D
D
D
D
D
Exhibit - D-19
SCHEDULE OF ACCRUED INTEREST ON BONDS AND NOTES
SWIMMING POOL UTILITY OPERA TING FUND
REF.
Balance - December 3 I, 2016
D
$ 10,185.31
Increased by:
Accrued Interest Charged to:
201 7 Budget Appropriations
D-4
21 713.75
31,899.06
Decreased by:
Cash Disbursements
D-5
22,222.50
Balance - December 31, 2017
D
$
9,676.56
Analysis of Balance - December 31, 2017:
Principal
Outstanding
Interest
12/31/17
Rate
From
To
Period
Amount
Bonds
$1,016,000.00
Various
07/15/17
12/31/17
5.5 months
$
9,676.56
-123-
SCHEDULE OF GENERAL SERIAL BONDS
Exhibit - D-20
MA TURIT!ES OF BONDS
DATE OF
ORIGINAL
OUTSTANDING-DEC. 312017
INTEREST
BALANCE
BALANCE
ISSUE
ISSUE
ISSUE
DATE
AMOUNT
RATE
DEC. 31, 2016
DECREASE
DEC.31 2017
General Improvement Bonds of2015
07/16/15
$ 1,235,000.00
07/15/18
$
I 14,000.00
1.500%
$1,127,000.00
$111,000.00
$1,016,000.00
07/15/19
117,000.00
2.000%
07/15/20
121,500.00
2.000%
07/15/21
124,500.00
2.000%
07/15/22
129,000.00
2.000%
07/15/23
132,000.00
2.000%
07/15/24
136,500.00
2.500%
07/15/25
141,500.00
2.500%
$ 1 127 000.00
$111000.00
$ LOI6,000.00
Ref.
D
D-15
D
•
-
>--'
N
"'"
BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
ORD.
NUMBER
IMPROVEMENT DESCRIPTION
1771-10
Swim Pool Improvements
- 125-
BALANCE
DEC. 31, 2016
$ 250 000.00
$ 250,000.00
Exhibit - D-21
BALANCE
DEC. 31, 2017
$ 250 000.00
$ 250 000.00
D
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
PART IV
SUPPLEMENTARY DATA
-126 -
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
COMBINED BALANCE SHEET· ALL FUNDS
FQR THE YEAR ENDfNG DECEMBER 31 2017
GENERAL
SWIMMING
CURRENT
TRUST
CAPITAL
POOL
GOVERNMENT AL
MEMORANDUMTOT AL ONLY
ASSETS
FUND
FUND
FUND
lITIUTY FUND
FIXED ASSETS
DEC. 312017
DEC. 31 2016
Cash and Investments
$
6,934,951.67 s
861,321.17 $
$
337,187.71
$
s
8,133,460.55 $
8,728,870.88
Accounts Receivable:
State & Federal Grants Receivable
1,524,198.53
67,448.91
1,426,497.97
3,018,145.41
2,933,743.27
Due from State of New Jersey
43,661.05
43,661.05
39,661.05
Taxes, Assessments, Liens &
Utility Charges
859,631.54
1,470.00
861,101.54
1,037,786.21
Interfund Loans
692,409.61
943,927.27
7,164.08
160,774.90
1,804,275.86
1,368,112.94
Other Accounts Receivable
208,993.03
208,993.03
1,196,144.88
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
80,000.00
Fixed Assets· General
21,769,424.00
21,769,424.00
21,341,368.00
Fixed Capital . Utility
2,316,291.56
2,316,291.56
2,316,291.56
Deferred Charges to Future Taxation:
General Capital Fund
17,874,660.92
17,874,660.92
15,068,412.07
>--'
N
$
l l ,@~,2_~_4_A_3_ $ 1,874,167.35 $ _ _19_]08 32'.L2Z_ $
2,SJ.,:tlHJL $
21,769,424.00 __ $_ 57 453152.92 $
55 533,5J9.86
"
GENERAL
SWIMMING
LIABILITIES. RESERVES
CURRENT
TRUST
CAPITAL
POOL
GOVERNMENT AL
MEMORANDUMTOTALONLY
6ND FIJND BALANC!~
FUND
FUND
FtJND
UTJL!IY [UND
FIXED ASSETS
DEC. 31 2017
DEC. 31 2016
Bonds and Notes Payable
$
s
$
8,432,000.00 $
1,016,000.00 $
$
9,448,000.00 $
10,518,000.00
Loans Payable
3,213,938.37
3,213,938.37
4,205,684.52
Prepaid Taxes, Assessments,
Utility Charges and Licenses
905,467.87
905,467.87
223,346.50
Tax, Assessment, Lien, License and
Utility Charge Overpayments
Appropriation Reserves
652,503.97
66,805.18
719,309.15
615,006.66
Reserve for Encumbrances/
Accounts Payable
722,060.31
127,912.59
1,409,753.13
114,347.90
2,374,073.93
1,006,037.29
Arnts. Pledged to Specific Purposes
2,634,769.24
1,186,967.57
435,898.29
7,730.10
4,265,365.20
5,156,482.78
Escrow Funds
496,318.21
496,318.21
637,289.49
Improvement Authorizations
5,029,210.19
145,321.79
5,174,531.98
2,724,510.25
lnterfund Loans
799,034.15
57,403.2]
786,987.42
160,851.08
1,804,275.86
1,368,112.94
Investments in Governmental Fixed Assets
21,769,424.00
21,769,424.00
21,341,368.00
Reserve for Amortization of Costs of
Fixed Capital Acquired or Authorized
1,050,291.56
1,050,291.56
939,291.56
Reserve for Certain Assets Acquired
or Receivables & Inventories
2,782,504.29
2,782,504.29
3,702,962.48
Fund Balance
3 190 644.60
5 565.77
535.57
252 906.56
3 449 652.50
3 095 437.39
$
11,686,984,4}_ $
1,874,167.35 $ t9,30_~JJ1._97 s
2,814,254,17 $
21,769,424.00 s 51A.~iu£2L $ -----22,_533,529.86
COMPARATIVE STATEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE - CURRENT FUND
Revenue and Other
Year 2017
Year 2016
Income Realized
Amount
%
Amount
%
Fund Balance Utilized
$
1,886,616.88
3.68
$
1,618,212.60
3.26
Miscellaneous - From Other
Than Local Property
Tax Levies
6,307,802.10
12.31
6,631,519.70
13.35
Collection of Delinquent Taxes
and Tax Title Liens
688,212.53
1.34
636,089.00
1.28
Collection of Current
Tax Levies
42 363 346.31
82.67
40 773 289.51
82.l l
Total Income
51 245 977 .82
100.00
49,659 110.81
100.00
Expenditures
Budget Expenditures:
Municipal Purposes
18,843,210.06
38.55
19,328,757.72
40.16
County Taxes
5,831,969.88
l l.93
5,556,152.47
11.54
Local School Taxes
23,955,459.00
49.01
23,225,281.00
48.26
Other Expenditures
243 378.33
0.50
19 367.95
0.04
Total Expenditures
48,874 017.27
100.00
48,129 559.14
100.00
Excess in Revenue
2,371,960.55
1,529,551.67
Fund Balance January 1
2 705 300.93
2 793 961.86
5,077,261.48
4,323,513.53
Less:
Utilization as Anticipated
Revenue
I 886 616.88
1 618 212.60
Fund Balance December 31
$
3 190 644.60
$
2 705 300.93
-128-
COMPARATIVE STATEMENT OF OPERATIONS AND CHANGE
IN FUND BALANCE - SWIMMING POOL UTILITY OPERA TING FUND
Revenue and Other
Year 2017
Year 2016
Income Realized
Amount
%
Amount
%
Fund Balance Utilized
$
I55,000.00
28.14
$
153,744.10
28.20
Membership Fees
276,587.50
50.21
262,985.00
48.24
Miscellaneous From Other
Than Membership Fees
119 284.69
21.65
128 404.00
23.56
Total Income
550 872.19
100.00
545133.10
l 00.00
Expenditures
Budget Expenditures:
Operating
527 000.75
100.00
513 744.10
100.00
Total Expenditures
527 000.75
100.00
513 744.10
l 00.00
Excess in Revenue
23,871.44
31,389.00
Fund Balance January l
381 416.12
503 771.22
405,287.56
535,160.22
Less:
Utilization as Anticipated Revenue
155 000.00
153 744.10
Fund Balance December 31
$
250,287.56
$
381,416.12
-129-
COMPARATIVE SCHEDULE OF TAX RATE INFORMATION*
Tax Rate:
Apportionment of Tax Rate:
Local School:
2.463
2.393
2.343
0.097
0.094
0.094
1.086
1.034
1.044
0.089
0.086
0.086
4.909
4.752
4.615
Municipal:
Municipal Library:
County:
County Open Space:
Assessed Valuation:
2017
2016
2015
$496,055,584.00
$495,949,961.00
$495,857,040.00
*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 2017 to be $133,000.
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
2017
$42,939,795.47
$42,363,346.3 I
98.66%
2016
41,510,703.28
40,773,289.51
98.22%
2015
40,613,489.16
39,966,937.15
98.41%
-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
2017
$360,646.06
$498,985.48
$859,631.54
2.00%
2016
334,506.62
701,809.59
1,036,316.21
2.50%
2015
323,406.72
633,246.09
956,652.81
2.36%
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
2017
2016
2015
COMPARATIVE SCHEDULE OF FUND BALANCES
$1,423,139.00
1,423,139.00
1,423,139.00
Swimming Utility
Operating Fund
Utilized in
Budget of
Calendar
Succeeding
Year
Balance
Year
2017
$3,190,644.60
$2,211,000.00
2016
2,705,300.93
1,886,616.88
2015
2,793,961.86
1,618,212.06
2014
1,701,515.87
1,019,770.00
2013
1,514,126.73
996,000.00
2017
$250,287.56
$128,060.00
2016
381,416.12
155,000.00
2015
503,771.22
153,744.10
2014
405,474.36
66,224.00
2013
394,411.85
59,690.00
Current Fund
-131 -
OFFICIALS IN OFFICE AND SURETY BONDS
The following officials were in office as at December 31, 2017:
AMOUNT
NAME
TITLE
OFBOND
Ronald J. DiMura
Mayor
*
Robert Schueler
President of Council
*
Patrick Corley
Councilperson
*
Kevin Dotey
Councilperson
*
John Madden
Councilperson
•
Jack Mikolajczyk
Councilperson
•
Dan Parenti
Councilperson
*
Denise Biancamano
Chief Financial Officer/
*
Tax Collector
Carmen Modica
Acting Purchasing Agent
•
Kathleen Anello
Borough Clerk/Dog License Officer/
*
Assessment Search Officer
Lizandra DeAngelis
Court Administrator
•
Dennis Fackelman
Municipal Court Judge
*
Aravind Aithal, Esq.
Attorney
Robert Klein
Construction Code Official
Terry Brundage
Health Officer
Thomas Reilly
Tax Assessor
Linda Chismar
Deputy Borough Clerk/
Registrar of Vital Statistics
Remington & Vernick
Engineer
Beverly Weber
Treasurer, Free Public Library
Katherine Bird
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
PARTY
GENERAL COMMENTS AND RECOMMENDATIONS
-133 -
BOROUGH OF MIDDLESEX
COUNTY OF MIDDLESEX, NEW JERSEY
YEAR ENDED DECEMBER 31, 2017
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, 2017, 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, 2017, 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 September 26, 2018 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:
2017-1 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: 11-4
N.J.S.A. 40A:11-4 states "Every contract or agreement, for the performance of any work or the
furnishing or hiring of any materials or supplies, the cost or the contract price whereof is to be
paid with or out of public funds not included within the terms of Section 3, of this act, shall be
made or awarded only after public advertising for bids and bidding therefor, except as is provided
otherwise in this act or specifically by any other Jaw. 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.
11
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:J l-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, 2017, 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:
Road Improvements; Tree Removal/Trimming and Stump Grinding; Mill & Overlay Project
State Contracts:
Antennas, Speakers and Charging System; Firefighter Helmets; 2 Mobile 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 PerN.J.S.A. 40A:l l-4 {Cont'd.)
A test examination of expenditures revealed no individual payments, contracts or agreements in
excess of $17,500 or $40,000 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:1 l-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 Jaws 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 oflnterest 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, 2017, 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 (I 0) days after the date upon which the same is payable;
-137 -
GENERAL COMMENTS
OTHER MATTERS (Cont'd.)
Collection oflnterest on Delinquent Taxes and Assessments (Cont'd.)
NOW, THEREFORE, BE [T 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 (I 0) days after the date payable, in that event there shall be no interest
charged.
"In addition, pursuant to N.J.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 December 13, 2017. 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:
Number of Liens
CY 2017
CY 2016
CY 2015
9
9
9
Investments
The Borough has adopted a formal cash management plan policy in compliance with N.J.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".
lnterfund Balances
lnterfund Balances appear in the balance sheets of the Borough's financial statements of the year
ended December 31, 2017.
These interfunds, in most cases, resulted from CY 2017 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, 2017. The minimum
surety bond requirements for both the Tax Collector and Municipal Court were met for fiscal year
2017.
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 ofN.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.
Administration and Accounting of State & Federal Grants
During CY 2017, 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, 20 I 7. 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 N.J.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 - Accounting for Governmental Fixed Assets: This directive requires the
development and implementation of accounting systems which assign values to covered assets
and can track additions, retirements and transfers of inventoried assets. The Borough contracted
with an outside agency to perform a fixed asset inventory and has established a Fixed Assets
Accounting and Reporting System. The Borough is in compliance with this directive.
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-IO, Uniform Construction Code, expenditure
records were tested for compliance with N.J.A.C. 5:23. l 7(c)2, and no exceptions were noted for
those items tested.
The Borough prepared and filed a corrective action plan for the year 2016, pursuant to Local
Finance Notice No. 92-15 issued by the Division of Local Government Services, Department of
Community Affairs, State ofNew Jersey.
-141 -
RECOMMEND A TIO NS
We recommend the following:
None
* * * * * * * * * *
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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