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Executive Summary
The Borough of Middlesex's financial statements for the years ending December 31, 2018, and 2017 were independently audited by Hodulik & Morrison, P.A. The audit covered the financial transactions of various offices and departments within the Borough. The regulatory basis financial statements were prepared in conformity with accounting practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. An adverse opinion was issued on the financial statements in accordance with accounting principles generally accepted in the United States of America due to the regulatory accounting practices not accurately representing the financial position and operations under GAAP.
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--- Document: 2018 Middlesex Borough Municipal Audit Document ---
MIDDLESEX BOROUGH
BOROUGH OF MIDDLESEX
COUNTY OF MIDDLESEX
NEW JERSEY
FINANCIAL STATEMENTS
AND
SUPPLEMENTARY DATA
AND INFORMATION
FOR THE YEARS ENDED
DECEMBER 31, 2018 AND 2017
WITH
REPORT OF INDEPENDENT AUDITORS
HODULIK & MORRISON, P.A.
A division of o ~ONNOR
DAVIES
ACCOUNTANTS ANO ADVI SORS
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
TABLE OF CONTENTS
PART I
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 ST A TEMENTS
A
A- I
A-2
A- 3
B
B- I
C
C- I
D
D- I
D-2
D-3
D-4
E
Current Fund - Comparative Balance Sheet - Regulatory Basis - December 31,
2018 and 2017
Current Fund - Comparative Statement of Operations and Change in
Fund Balance - Regulatory Basis
Current Fund - Statement of Revenues - Regulatory Basis
Current Fund - Statement of Expenditures - Regulatory Basis
Trust Fund - Comparative Balance Sheet - Regulatory Basis - December 31,
2018 and 2017
Trust Assessment Fund - Statement of Fund Balance - Regulatory Basis
General Capital Fund - Comparative Balance Sheet - Regulatory Basis -
December 31, 2018 and 2017
General Capital Fund - Statement of Fund Balance - Regulatory Basis
Swimming Pool Utility Fund - Comparative Balance Sheet - Regulatory
Basis - December 31, 2018 and 2017
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 -SUPPLEMENTARY SCHEDULES
Current Fund
A-4
A-5
A-6
A-7
A-8
Schedule of Current Fund Cash
Schedule of Petty Cash and Change Funds
Schedule of Due from State of New Jersey - for Allowable
Deductions per Ch. 73, P.L. 1976
Schedule of Property Taxes Receivable and Levy Analysis
Schedule ofNonbudget Revenues & Various Accounts Receivables
PAGE(S)
2-4
5 - 6
7
8
9
IO
11 - 19
20
21
22
23
24
25
26
27
28
29
30 - 63
64
65
66
67
68
69
70
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
TABLE OF CONTENTS
PART II -SUPPLEMENTARY SCHEDULES
Current Fund (Cont'd.)
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 Sewer Flow Charges Receivable
Schedule of lnterfunds Receivable/Payable
Schedule of 2017 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/to 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
C-13
C-14
C-15
C-16
Schedule of General Capital Cash and Investments - Treasurer
Analysis of General Capital Cash and Investments
Schedule of Various Grants, Loans, and Other Receivables
Schedule of Deferred Charges to Future Taxation - Funded
Schedule of Deferred Charges to Future Taxation - Unfunded
Schedule of lnterfunds
Schedule of Improvement Authorizations
Schedule of General Serial Bonds
Schedule of Capital Leases Payable - MCIA
Schedule of Loans Payable - New Jersey 1987 Green Trust Fund
Schedule of Loans Payable - New Jersey Green Trust Fund - 1989
Schedule of Various Reserves
Schedule of Reserve for Capital Improvement Fund
Schedule of Bond Anticipation Notes
Schedule of Bonds and Notes Authorized but not Issued
PAGE(S)
71
72
73 - 78
79
80
81
82
82
83
84
85 - 86
87
88
89
89
90
90
91 - 94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
I 09
110
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
TABLE OF CONTENTS
Swimming Pool Utility Fund
D-5
D-6
D-7
D-8
D-9
D-10
D-11
D-12
D-13
D-14
D-15
D-16
D-17
D-18
D-19
D-20
D-21
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 of2017 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 III- SUPPLEMENTARY DATA
Combined Balance Sheet-All Funds for the Year Ending December 31, 2018
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 IV - GENERAL COMMENTS AND RECOMMENDATIONS
General Comments
Recommendations
PAGE(S)
11 I
I 12
113
114
115
115
115
116
117
I I 8
119
119
120
120
121
122
123
124
125
126
127
128
129
129
130
130
130
131
132
133-141
142
1
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
PARTI
INDEPENDENT AUDITOR'S REPORT
AND
FINANCIAL STATEMENTS
2
HODULIK & MORRISON, P.A.
A division of O ~ONNOR
DAVIES
ACCOUNTANTS ANO ADVISORS
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 3 1, 20 18 and 2017, 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
3 1, 2018, and the related notes to the financial statements, which col lectively 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 w ith the financial repo11ing 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 op1111on 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.
1102 Raritan Avenue, Highland Park, NJ 08904
Tel: 732.393.1000 I Fax: 732.393.1196
20 Commerce Drive, Suite 301 , Cranford, NJ 07016
Tel: 908.272.6200 I Fax: 908.272.2416
PKF O'Connor Davies, LLP is a member firm or the PKF International Limited network or legally independent firms and does
not accept any responsibility or liability for the actions or inactions on the part or any other individual member firm or firm
3
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, 2018, 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, 20 I 8 and 2017 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, 2018, on the basis of accounting described in Note 2.
Emphasis of Matter
As discussed in the notes to the financial statements, during the fiscal year ending December 31, 2018, the
Borough of Middlesex implemented the provisions of Statement Number 75 of the Governmental Accounting
Standards Board (GASB75). GASB 75 changed the measurement criteria and reporting provisions relating to
the Borough's proportionate share (if any), of the annual expense and net liability of the post-retirement
employee benefits other than pensions (OPEB) of plans in which its employees are enrolled. Our opinion is
not modified with respect to this matter.
4
Other Matters
Other Information
Our audit was made for the purpose of forming an opinion on the financial statements of the Borough of
Middlesex, County of Middlesex, New Jersey. The information included in Part II - Supplementary Schedules
and Pati III - 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 II - 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 III - 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 August 27, 2019 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.
d+r!dti ~ )f~/tl,, I.If
HODULIK & MORRISON, P.A.
A division of PKF O'Connor Davies
Certified Public Accountants
Registered Municipal Accountants
4
~
Andrew G. Hodulik
Registered Municipal Accountant
No. 406
Highland Park, New Jersey
August 27, 2019
5
HODULIK & MORRISON, P.A.
A division of o ~~ONNOR
DAVIES
ACCOUNTANTS AND ADVISORS
REPORT ON TNTERNAL CONTROL OYER FINANCIAL REPORTTNG
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FTNANCIAL ST A TEMENTS 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, 2018, 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 August 27, 2019.
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.
1102 Raritan Avenue, Highland Park, NJ 08904
Tel: 732.393.1000 I Fax: 732.393.1196
20 Commerce Drive, Suite 301, Cranford, NJ 07016
Tel: 908.272.6200 I Fax: 908.272.2416
PKF O'Connor Davies. LLP ,s a member firm of the PKF International limited network of legally independent firms and does
not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.
6
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 repoti 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 & MORRJSON, P.A.
A division of PKF O'Connor Davies
Certified Public Accountants
Public School Accountants
Highland Park, New Jersey
August 27, 2019
7
FINANCIAL STATEMENTS
8
Exhibit- A
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
DECEMBER 3!.,.2018 AND DECEMBER 31 2017
BALANCE
BALANCE
UABILIT!ES, RESERVES
BALANCE
BALANCE
ASSETS
REF.
DEC. 31 2018
DEC. 31 2017
AND FUND BALANCE
REF.
DEC. 31 2018
DEC.312017
Cash and Investments - Treasurer
A-4
$
4,783,515.43
$
6,934,451.67
Liabilities:
Cash - Change Fund
A- 5
500.00
500.00
Appropriation Reserves
A-3,A-11 $
640,857.36
$
652,503.97
Due from State ofN.J. per Ch. 129,
Reserve for Encumbrances
A-3,A-11
384,902.74
218,936.41
P.L. 1976
A-6
40,256.25
43,661.05
Prepaid Taxes
A-7
207,074.40
905,467.87
Tax Overpayments
A- 7
31,653.24
4,824,271.68
6,978,612.72
County - Added & Omitted Payable
A-13
15,067.38
Various Payables
A-14
103,950.96
81,947.84
Receivables With Offsetting Reserves:
Various Reserves
A-14
860,l J 3.62
I, 130,077.88
Taxes Receivable
A-7
650,184.50
498,985.48
Interfunds Payable
A-10
144,565.09
799,034.15
Tax Title Liens
A- 7
360,646.06
360,646.06
Property Acquired for Taxes (At
2,388,184.79
3,787,968.12
Assessed Valuation)
A-7
1,423,139.00
1,423,139.00
Reserve for Receivables
Revenue Accounts Receivable
A-8
22,335.90
22,214.39
Fund Balance
Reserve
2,911,567.41
2,782,504.29
Sewer Flow Charges Receivable
A-9
58,862.74
186,778.64
A-I
2,586,086.89
3,190,644.60
lnterfunds Receivable
A-10
396,399.21
290,740.72
Total Regular Fund
7,885,839.09
9,761,117.01
2,911,567.41
2,782,504.29
Deferred Charges:
Special Emergency
A-12
l 50,000.00
150,000.00
Total Regular Fund
7,885,839.09
9,761,117.0]
State and Federal Grant Fund:
State and Federal Grant Fund:
Reserve for State and Federal Grants:
Grants Receivable
A-17
1,539,229.11
1,524,198.53
Appropriated
A-19
590,060.23
1,474,271.13
Due from Current Fund
A-18
377,893.89
Unappropriated
A-20
33,615.23
30,420.23
Due from General Capital Fund
A-16
23,775.00
23,775.00
Reserve for Encumbrances
A-19
889,329.59
421,176.06
Due to Current Fund
A-18
49,999.06
Total State and Federal Grant Fund
1,563,004.11
1,925,867.42
Total State and Federal Grant Fund
J ,563,004. l l
1,925,867.42
$
9.448,843.20
$
11,686,984.43
$
9,448,843.20
$
11,686,984.43
Deferred School Taxes:
Balance ofTax
A-15
$
12,568,492.00
$
12, 136,004.00
Deferred
A-15
12,568,492.00
12, 136,004.00
School Taxes Payable
$
$
Note: See Notes to Financial Statements
9
Exhibit A-1
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
COMPARA TJVE STATEMENT OF OPERA TJONS AND
CHANGE IN FUND BALANCE· REGULATORY BASIS
FOR THE YEARS ENDED DECEMBER 31 2018 AND 2017
REVENUE AND OTHER INCOME REALIZED
REF.
YEAR 2018
YEAR 2017
Fund Balance Utilized
A-1, A-2 $
2,211,000.00 $
I ,886,616.88
Miscellaneous Revenues Anticipated
A-2
4,727, I 82. 7 I
5,455,165.91
Receipts from Delinquent Taxes
A-2
490,906.74
688,212.53
Receipts from Current Taxes
A- 7
43,420,174.67
42,363,346.3 I
Non-Budget Revenue
A-2
242,162.84
473,762.95
Other Credits to Income:
Unexpended Balances of Approp. Reserves
A-11
410,078.81
372,009.90
Interfunds Advanced/Returned - Statutory Animal Excess
Due from Animal Control Fund
A-10
6,936.16
6,863.34
Total Revenues
51,508,441.93
51,245,977.82
EXPENDITURES AND OTHER CHARGES
Budget Appropriations:
Operating
Salaries and Wages
A-3
6,670, I 56.00
6,531,189.00
Other Expenses
A-3
8,532,529.00
8,080,390.88
State and Federal Programs Off-Set by Revenue
A-3
137,880.88
148,671.3 I
Municipal Debt Service
A-3
2,432,283.45
2,301,480.87
Capita! Improvements
A-3
65,000.00
80,000.00
Deferred Charges and Statutory Expend.-Mun.
A-3
1,411,635.00
1,701,478.00
County Tax
A-13
5,919,779,82
5,83 I ,969.88
Local District School Taxes
A-13
24,777,077.00
23,955,459.00
Interfunds Advanced - Net
A-10
105,658.49
243,378.33
Tota! Expenditures
50,051,999.64
48,874,017.27
Excess in Revenue
1,456,442.29
2,371,960.55
Adjustments to Income Before Fund Balance:
Expenditures Included Above Which are by Statute
Deferred Charges to Budgets of Succeeding Years
A-3
150,000.00
Statutory Excess to Fund Balance
1,606,442.29
2,371,960.55
FUND BALANCE
Balance - January l
A
3, I 90,644.60
2,705,300.93
4,797,086.89
5,077,261.48
Decreased by;
Utilization as Anticipated Revenue
A-1
2,211,000.00
1,886,616.88
Balance - December 31
A
$
2,586,086.89 $
3,190,644.60
Note: See Notes to Financial Statements
10
Exhibit A-2
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
STATEMENT OF REVENUES· REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2018
ANTICIPATED
APPROP.
20!8
N.J.S.A.
Total
EXCESS OR
REF.
BUDGET
40A:4-87
Budget
REALIZED
(DEFICIT)
Fund Balance Anticipated
A-1
$
2,2! 1,000.00 $
$
2,211,000.00
$
2,211,000.00 $
Miscellaneous Revenues:
Licenses:
Alcoholic Beverages
13,500.00
13,500.00
13,450.00
(50.00)
Other
20,000.00
20,000.00
36,285.50
!6,285.50
Fees and Pennits
18,000.00
18,000.00
5,078.19
(12,921.8 I)
Fines and Costs:
Municipal Court
306,000.00
306,000.00
324,601.65
!8,601.65
Interest and Costs on Taxes
170,500.00
170,500.00
131,523.7!
(38,976.29)
Interest on Investments and Deposits
74,000.00
74,000.00
93,227.97
19,227.97
Television Franchise Fees
96,640.16
96,640.16
97,847.30
l,207.14
Payment in Lieu of Taxes~ Prebyterian Homes
58,400.00
58,400.00
392,700.4!
334,300.4 I
Sewer Rents Receivable
l,100,000.00
I, 100,000.00
1,144,529.54
44,529.54
Host Community Benefit Funds
79,700.00
79,700.00
86,327.81
6,627.81
Consolidated Municipal Property Tax Relief Aid
130,525.00
130,525.00
130,525.00
Energy Receipts Taxes
1,649,289.00
1,649,289.00
1,649,289.00
Dedicated Unifonn Construction Code Fees Offset
with Appropriations (N.J.S.A. 40A:4-36 and N.J.A.C. 5:23-4. l 7):
Uniform Construction Code Fees
297,500.00
297,500.00
269,157.00
(28,343.00)
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.:
Clean Communities Program
26,175.56
26,175.56
26, l 75.56
Community Development Block Grant
48,921.00
48,921.00
48,921.00
OMV Inspection Fines
1,58!.40
1,581.40
1,581.40
Middlesex County - Info. Assis & Transp. Assist -
Older American Act of ! 965
17,700.00
8,500.00
26,200.00
26,200.00
Municipal Alliance on Alcoholism and Drug Abuse
20,965.00
20,965.00
20,965.00
Municipal Alcohol Education/Rehabilitation
2,196.67
2, I 96.67
2,196.67
NJ Div of Highway Traffic Safety - 2018 Udrive, Utext, Upay
6,600.00
6,600.00
6,600.00
Other Special Items:
Reserve for Sale of Municipal Assets - Cell Tower
200,000.00
200,000.00
200,000.00
Tota! Miscellaneous Revenues
A-l,A-8
4,3?8,240.16
38,453.63
4,366,693.79
4,727,182.71
360,488.92
Receipts from Delinquent Taxes
A-1,A-7
525,000.00
525,000.00
490,906.74
{34,093.26)
Subtotal General Revenues
7,064,240.16
38,453.63
7,102,693.79
7,429,089.45
326,395.66
Amount to be Raised by Taxes for Support of
Municipal Budget:
Local Tax for Municipal Purposes Including
Reserve for Uncollected Taxes
A-7
12,393,324.32
12,393,324.32
12,671,734.85
278,410.53
Minimum Library Tax
A-7
494,095.00
494,095.00
494,095.00
Total Amount to be Raised by Taxes
for Support of Municipal Budget
12,887,419.32
l 2,887,419.32
13,165,829.85
278,410.53
Budget Totals
19,951,659.48
38,453.63
19,990,!!3.11
20,594,919.30 $
604,806.19
Non-Budget Revenues
A-1,A-4
242,162.84
$ 19,951,659.48 $ 38,453.63
$
19,990,113.11
$
20,837,082.14
Ref.
A-3
A-3
A- 3
( ) Denotes Deficit
Note: See Notes to Financial Statements
11
OPERATIONS WITHIN "CAPS"
GENERAL GOVERNMENT:
General Administration
Salaries & Wages
Other Expenses
Mayor and Council
Salaries and Wages
Other Expenses
Municipal Clerk
Salaries and Wages
Other Expenses
Postage for All Departments
Other Expenses
Printing and Advertising
Other Expenses
Financial Administration (Treasury)
Salaries and Wages
Other Expenses
Elections
Other Expenses
Annual Audit
Other Expenses
Revenue Administration (Tax Collection)
Salaries and Wages
Other Expenses
Tax Assessment Administration
Salaries and Wages
Other Expenses
Legal Services
Other Expenses
Engineering Services
Other Expenses
Computer Data Services
Salaries and Wages
Other Expenses
Environmental Legal & Engineering Services and Costs
Other Expenses
Purchasing Agent
Other Expenses
BOROUGH OF MIDDLESEX
MJDDLESEX COUNTY NEW JER$EY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BAS rs
FOR THE YEAR ENDED DECEMBER 3!, 201~
2018 BUDGET
$
115,500.00 $
8,950.00
12,000.00
5,100.00
192,500.00
11,450.00
23,000.00
7,500.00
98,000.00
45,650.00
6,000.00
45,000.00
76,500.00
7,770.00
20,500.00
3,750.00
102,000.00
76,100.00
15,260.00
250,500.00
9.500.00
2,150.00
BUDGET AFTER
MODIFICATION
82,700.00
8,950.00
12,000.00
5,100.00
192,500.00
11,450.00
23,000.00
7,500.00
98,000.00
45,650.00
6,000.00
45,000.00
76,500.00
7,770.00
20,500.00
3,750.00
114,000.00
76,100.00
15,260.00
250,500.00
13,500.00
2,150.00
$
PAID OR
CHARGED
82,647.89
4,203.90
I !,866.43
3,950.61
192,465.14
4,641.43
21,743.86
5,255.05
98,000.00
45,226.95
5,749.22
70.057.86
5,641.99
20,499.99
1,766.56
91,101.94
59,473.45
!5,257.72
205,235.09
4,585.50
1,191.22
EXPENDED
EN('VMBI;:RED
$
$
2,670.00
400.22
410.00
233.82
161.9!
950.00
10,655.00
10,656.21
2,037.88
4,140.25
101.36
RESERVED
52.11
2,076.10
133.57
749.17
34.86
6,398.57
1,256.14
2,244.95
189.23
250.78
45,000.00
6,442.14
1,966.10
0.01
1,033.44
12,243.06
5,970.34
2.28
43,227.03
4,774.25
857.42
$
UNEXPENDED
BALANCE
CANCELLED
Exhbit A-3
Page 1 of9
12
LAND USE ADMINISTRATION:
Planning Board
Salaries and Wages
Other Expenses
Zoning Board of Adjustment
Salaries and Wages
Other Expenses
Code Enforcement
Salaries and Wages
Other Expenses
INSURANCE;
Temporary Disability Insurance
Long-Tenn Disability Insurance
Liability Insurance
Workmen's Compensation
Employee Group Insurance
Police Department
Salaries and Wages
Other Expenses
Juvenile Conference Committee
Salaries and Wages
Other Expenses
Office of Emergency Management
Salaries and Wages
Other Expenses
Aid to Volunteer Ambulance Companies
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY_J\l..J'~lf,,BSEY
CURRENT FUND
STATEMENT OF EXPENDITURES- REGULATORY BASIS
F'OR THE YEAR ENDED DECEMBER31 20!~
2018 BUDGET
$
4,800.00 $
38,550.00
4,800.00
5,000.00
64,500.00
n,9so.oo
30,000.00
19,000.00
282,000.00
160,928.00
2,580,000.00
3,492,000.00
154,600.00
2,135.00
250.00
4,800.00
16,150.00
25,000.00
BUDGET AFTER
MODIFICATION
4,800.00
38,550.00
1,800.00
5,000.00
64,500.00
11,950.00
30,000.00
19,000.00
282,000.00
160,928.00
2,580,000.00
3,447,300.00
154,600.00
2,135.00
250.00
4,800.00
16,150.00
25,000.00
$
PAID OR
CHARQE;.Q
1,800.00
24,823.11
1,200.00
3,567.35
56,681.00
6,806.50
26,807.74
17,305.78
281,506.27
160,928.00
2,488,035.49
3,407,151.00
121,767.71
2,134.92
4,800.00
7,982.40
25,000.00
EXPENDED
ENCUMBERED
$
$
962.00
12,699.14
2,533.00
RESERVED
3,000.00
13,726.89
600.00
1,432.65
7,819.00
4,181.50
3,192.26
1,694.22
493.73
91,964.51
40,149.00
20,133.15
0.08
250.00
5,634.60
$
UNEXPENDED
BALANCE
CANCELLED
Exhbit A-3
Page 2 of9
13
PUBLIC SAFETY Ji;Q_ljI'!lJ:
Fire Department
Other Expenses
Hazardous Waste Facilities Tax -
Other Expenses
Fire Hydrant Fees
Other Expenses
Municipal Prosecutor's Office
Salaries and Wages
Municipal Court
Salaries and Wages
Other Expenses
PUBLIC WORKS:
Road Repairs and Maintenance
Salaries and Wages
Other Expenses (Emergency Approp - $150,000)
Shade Tree Commission
Salaries and Wages
Other Expenses
Solid Waste Collection
Salaries and Wages
Garbage and Trash Removal
Salaries and Wages
Other Expenses
BOROUGH OF MIDDLESEX
MlDDLESEX COUNTY.,.l:UiW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR END~D DECEMBER 31 2018
2018 BUDGET
$
126,050.00 $
2,000.00
210,000.00
24,400.00
165,000.00
11,750.00
800,000.00
130,525.00
2,622.00
25,000.00
152,000.00
373,000.00
46,600.00
BUDGET AFTER
MODIFICATION
126,050.00
2,000.00
213,500.00
24,400.00
150,000.00
11,750.00
800,000.00
285,525.00
2,622.00
28,000.00
152,000.00
398,000.00
48,600.00
$
PAID OR
CHARGED
l 12,595.06
1,181.70
176,103.30
24,398.40
146,998.16
6,777.80
776,691.75
253,498.91
2,557.88
20,040.00
139,317.41
390,485.23
46,075.58
EXPENDED
ENCUMBERED
$
9,124.29 $
350.00
23.10
9,350.66
7,910.00
RESERVED
4,330.65
818.30
37,396.70
1.60
2,651.84
4,949.10
23,308.25
22,675.43
64.12
50.00
12,682.59
7,514.77
2,524.42
$
UNEXPENDED
BALANCE
CANCEJe_LED
ExhbitA*3
Page 3 of9
14
PUBLIC WORKS (CONT'D):
Community Services Act
(Condominium Community Costs)
Other Expenses
Building and Grounds
Salaries and Wages
Other Expenses
Rental of Rescue Squad Building
Other Expenses
HEAL TH AND HUMAN SERVICES:
Public Health Services (Board of Health)
Other Expenses
Animal Control
Other Expenses
Senior Nutrition - Program Costs
Salaries and Wages
Title l!l Senior Medical Transportation - Program Costs
Salaries and Wages
Title HI Information & Assistance - Program Costs
Salaries and Wages
PARKS AND RECREATION.,;
Recreation Services and Programs
Salaries and Wages
Other Expenses
Parks and Playgrounds
Salaries and Wages
Other Expenses
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 3 l 2018
$
2018 BUDGET
45,500.00 $
22,500.00
95,000.00
7,200.00
69,550.00
31,600.00
7,200.00
12,500.00
35,200.00
104,500.00
24,360.00
300,000.00
62,450.00
BUDGET AFTER
MODIF!CATJON
45,500.00 $
22,500.00
108,000.00
7,200.00
69,550.00
31,600.00
11,700.00
12,500.00
35,200.00
104,500.00
24,360.00
300,000.00
62,450.00
PAIDOR
CHARGED
45,422.52
$
22,424.04
82,914.43
6,600.00
67,829.45
21,300.00
9,045.00
5,534.08
33,541.18
103,107.74
13,546. !0
298,549.53
58,030.71
EXPENDED
J;;t:J£_UMBERED
12,663.82
600.00
224.47
2,979.65
$
RESERVED
77.48
$
75.96
12,421.75
1,720.55
10,300.00
2,655.00
6,965.92
1,658.82
1,392.26
10,589.43
1,450.47
1,439.64
UNEXPENDED
BALANCE
CANCELLED
ExhbitA-3
Page 4 of9
15
PARKS AND RECREATION (CQNT'.Ql
Celebration of Public Events
Other Expenses
Senior Citizens Bus Transportation
Other Expenses
Senior Citizens Coordinator
Salaries and Wages
Other Expenses
Community Center
Other Expenses
OTHER COMMON OPERATING FUNCTJONS-
UNCLASSJF!ED:
Accumulated Sick Leave Compensation
Salaries and Wages
Housing and Community Advisory Board
Salaries and Wages
Other Expenses
Maintenance ofTax 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 TH!i YEAR ENDED DECEMBER31 2018
2018 BUDGET
$
55,000.00 $
5,000.00
52,500.00
6,000.00
82,500.00
35,000.00
375.00
100.00
1.00
1,000.00
35,000.00
BUDGET AFTER
MODIFICATION
55,000.00
5,000.00
6!,000.00
7,000.00
15,000.00
35,000.00
375,00
100.00
!.00
1,000.00
35,000.00
$
PAIDOR
CHARGED
48,927.26
4,177.86
57,115.38
6,339.50
15,000.00
32,213.81
250.00
674.76
33,537.60
EXPENDED
$
141.25
$
316.52
RESERVED
5,931.49
505.62
3,884.62
660.50
2,786.19
125.00
!00.00
LOO
325.24
1,462.40
$
UNEXPENDED
BALANCE
CANCELLED
Exhbit A-3
Page 5 of9
16
UTILITY EXPENSES AND BULK PURCHASJ;'..S;
Electricity
Street Lighting
Telephone (Excluding Equipment Acquis.)
Water
Gas (Natura! or Propane)
Fue! Oi! (Diesel Fuel)
Gasoline
Sewer Processing and Disposal
Salaries and Wages
Other Expenses
1,ANDFILL/SOUD WASTE DISPOSAL COSTS:
Landfill Fees
Other Expenses
CODE ENFORCEMENT AND ADMINISTRATION:
Construction Inspector, Plumbing Inspector
and Code Enforcer
Salaries and Wages
Other Expenses
Total Operations Within "CAPS"
Contingent
Total Operations Including Contingent Within "CAPS"
DETAIL:
Salaries and Wages
Other Expenses (Including Contingent)
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2018
2018 BUDGET
$
175,000.00
171,000.00
70,000.00
30,000.00
25,000.00
75,000.00
80,000.00
66,200.00
40,200.00
360,000.00
153,500.00
7,200.00
!2,443,226.00
28,000.00
! 2,471,226.00
6,409,792.00
6,061,434.00
$
BUDGET AFTER
MODIFICATION
! 75,000.00
171,000.00
70,000.00
30,000.00
25,000.00
40,000.00
50,000.00
71,200.00
45,200.00
370,000.00
153,500.00
7,200.00
12,466,726.00
28,000.00
12,494,726.00
6,357,292.00
6,137,434.00
$
PAJDOR
CHARGED
147,027.67
150,289.23
59,704.91
20,246.54
24,042.80
40,000.00
50,000.00
71,200.00
36,982.53
345,952.21
153,298.03
4,532.50
11,754,937.62
22,186.00
11,777,123.62
6,231,289.57
5,545,834.05
EXPENDED
ENCUMBERED
$
$
8,019.76
732.00
31.14
!0!,077.45
427.50
101,504.95
350.00
101,154.95
RESERVED
27,972.33
20,710.77
10,295.09
9,753.46
957.20
197.71
23,315.79
201.97
2,636.36
610,710.93
5,386.50
616,097.43
125,652.43
490,445.00
$
UNEXPENDED
BALANCE
CANCELLED
Exhbit A-3
Page 6 of9
17
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES- REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER3J 2018
DEFERRED CHARGES AND STATUTORY EXPENDITURES
MUNICIPAL WITHIN "CAPS''
STATUTORY EXPENDITURES:
Contribution to:
Social Security System (O.A.S.I.)
$
Public Employees' Retirement System ofNJ
Police and Firemen's Retirement System ofNJ
Pension & Firemen's Widow (NJSA 43:12-228.1)
Defined Contribution Retirement Program (DCRP)
Total Deferred Charges and Statutory Expenditures
Municipal Within "CAPS"
Tot11J Gt'nl'rnl Appmpri11tions for Municipal
Purposes Within ''CAPS"
OPERATIONS EXCLUDEl)_fB.QM "CAPS"
Maintenance of Free Public Library (NJSA 40:54-8)
Other Expenses
Middlesex County Utilities Authority Sewerage Treatment
Contractual
Piscataway Sewerage Authority - Share of Costs
Middlesex County Improvement Authority -
County Curbside Collection Program
Other Expenses
2018 BUDGET
300,000.00 $
344,023.00
741,112.00
5,000.00
10,000.00
1,400,135.00
13,871,361.00
494,095.00
1,238,700.00
450,000.00
l !7,500.00
BUDGET AFTER
MOQlfJC;\TJON
310,000.00
344,023.00
741,112.00
5,000.00
11,500.00
1,411,635.00
13,906,361.00
494,095.00
1,238,700.00
565,000.00
117,500.00
$
PAID OR
CHARGED
308,430.03
344,022.62
741,112.00
5,000.00
11,193.10
1,409,757.75
13,186,881.37
494,095.00
1,238,477.25
281,538.48
97,903.80
EXPENDED
ENCUMBERED
$
$
!01,504.95
283,397.79
RESERVED
1,569.97
0.38
306.90
1,877.25
617,974.68
222.75
63.73
l 9,596.20
$
UNEXPENDED
BALANCE
CANCELLED
Exhbit A-3
Page 7 of9
18
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDfTURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2018
OPERATIONS EXCLUDED FRQr0 "CAPS" (CONT'D)
Stormwater Pollution Programs: NJDES/Stormwater Permit
Salaries & Wages
Other Expense
PUBUC AND PRJVATE PROGRAMS
OFFSET BY REVENUES
Clean Communities Grant
CDBG
OMV Inspection Fines
Municipal Alliance on Alcohol & Drug Abuse
Municipal Alliance on Alcohol & Drug Abuse - Match
NJ. Alcohol Education & Rehabilitation - Municipal Court
N.J. Div of Highway Traffic Safety - 2018 Udrive, Utext. Upay
Older Americans Act - Information Assist
Total Operations Excluded from "CAPS"
DETAIL:
Salaries and Wages
Other Expenses
CAPITAL lMPROVEMENTS- EXCLUDED FROM "CAPS"
Down Payments on Improvements
Capital Improvement Fund
Tota! Capital Improvements Exel. from "CAPS"
MUNICIPAL DEBT SERVICE- EXCLUDED FROM "CAPS"
Payment of Bond Principal
Interest on Bonds
Loan Repayment for Principal and Interest
Loan Repayments for Principal and [nterest
MCIA Loan
Loan Repayments for Principal and Interest
Fire Truck
Loan Repayments for Principal and Interest
Environmental !nfratructure Loan
Total Municipal Debt Service - Exel. from "CAPS"
$
2018 BUDGET
286,664.00 $
6,000.00
48,921.00
20,965.00
5,241.25
6,600.00
17,700.00
2,692,386.25
304,364.00
2,388,022.25
65,000.00
65,000.00
966,000.00
245,918.75
12.997.00
963,632.47
145.373.0!
113,991.00
2,447,912.23
BUDGET AFTER
MODIFICATION
286,664.00 $
6,000.00
26,175.56
48,921.00
1,581.40
20.965.00
5,241.25
2,196.67
6,600.00
26,200.00
2,845,839.88
312,864.00
2,532,975.88
65,000.00
65,000.00
966,000.00
245,918.75
12,997.00
963,632.47
145,373.01
l l3,991.00
2,447,912.23
PAID OR
l:'l:lARGfil:?.
286.664.00
$
3,000.00
26,175.56
48,921.00
1,581.40
20,965.00
5,241.25
2,196.67
6,600.00
26,200.00
2,539,559.41
312,864.00
2,226,695.41
65,000.00
65,000.00
966,000.00
245,918.75
12,996.28
963,632.47
145,373.01
98,362.94
2,432,283.45
EXPENDED
ENCUMBERED
RESERVED
$
3,000.00
283,397.79
22,882.68
283,397, 79
22,882.68
$
UNEXPENDED
BALANCE
h.8.NCELLED
0.72
15,628.06
15,628.78
Exhbit A-3
Page 8 of9
19
Total General Appropriations for Municipal
Purposes Excluded from "CAPS"
Subtotal General Appropriations
Reserve for Uncollected Taxes
Total General Appropriations
Adopted Budget
Approp. by N.J.S.A. 40A:4-87
Emergency Approp.
Disbursed
Reserve for Uncollected Taxes
Reserve for State Grants
Note: See Notes to Financial Statements
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
fOR THE YEAR ENDED DECEMBER 31 2018
BUDGET AFTER
PAID OR
2018 BUDGET
MODIFICATION
CHARGE[?.
$
5,205,298.48 $
5,358,752.11 $
5,036,842.86
19,076,659.48
19,265,113.11
18,223,724.23
875,000.00
875,000.00
875,000.00
$
19,951,659.48 $
20,140,113.11 $
19,098,724.23
REF.
A-2
A-2
A-I
A-2
$
19,951,659.48
A-2
38,453.63
A-12
150,000.00
$
20,140,113.!1
A-4
$
18,085,843.35
A-7
875,000.00
A-10
137,880.88
$
!9,098,724.23
Exhbit A-3
Page 9 of9
EXPENDED
UNEXPENDED
BALANCE
.!~.NCU!\1B ER.E_Q
R..fil;ERVED
CANCELLED
$
283,397.79
$
22,882.68
$
15,628.78
384,902.74
640,857.36
15,628.78
$
384,902.74 $
640,857.36
$
15,628.78
A,A-1
A,A-1
A-I
20
Exhibit B
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
TRUSTFUNDS
COMPARATIVE BALANCE SHEET - REGULA TORY BASIS
DECEMBER31 2018AND2017
BALANCE
BALANCE
LIABILITIES, RESERVES
BALANCE
BALANCE
ASSETS
B-EF.
!2.F"-(:~..lLlP..li
DEC. 312017
AND FUND BAJ,ANCE
REF.
DEC. 31 2018
DEC__lLZQ.lZ
Assessment Trust Fund·
Assessment Trust Fund:
Cash and Investments - Treasurer
B-2 $
25,990.14
$
25,642.32
Due to General Capital Fund
B-4
$
7,164.08
$
7,164.08
Assessment Liens Receivable
B-3
1,470.00
1,470.00
Due to Current Fund
B-5
14,730.29
14,382.47
Fund Balance
B-1
5,565.77
5,565.77
Total Assessment Trust Fund
27,460.14
27,112.32
Total Assessment Trust Fund
27,460.14
27,112.32
Animal Control Fund:
Animal Control Fund:
Cash and Investments - Treasurer
B-6
49,504.42
44,116 06
Due to State of NJ
B-6
1.20
4.20
Due to Current Fund
B-6
34,592.82
27,656.66
Reserve for Animal Control Expenditures
B-6
14,910.40
16,455.20
Total Animal Control Fund
49,504.42
44,1 !6.06
Total Animal Control Fund
49 504.42
44.116.06
Trust-Other Fund:
Trust-Other Fund:
Cash and Investments - Treasurer
B-6
327,994.29
157,498.23
Reserve for Unemployment Insurance
B-6
200,793.89
207,983.83
Due from Current Fund
R-6
144,565 09
421,140 26
Reserve for Various Deposit~
B-6
794,552 50
893,441 67
Due from General Capita! Fund
B-6
522 787.01
522.787.01
Total Trust-Other Fund
995,346.39
1,101,425.50
Total Trust-Other Fund
995,346.39
1,101,425.50
Escrow Trust Fund:
Escrow Trust Fund:
Cash and Investments - Treasurer
B- 6
645,658.76
496,318.21
Developers' Escrow- Water & Soi!
B-6
20,062.00
20,062.00
Developers' Escrow Funds
B-6
625,596.76
476,256.21
Total Escrow Trust Fund
645,658.76
496,318.21
Tota! Escrow Trust Fund
645,658.76
496,318.21
Payroll Fund:
Payroll Fund
Cash and Investments - Treasurer
8-6
183,725.95
127,908.39
Payroll Deductions Payable
B-6
183,725.95
127,908.39
Total Payroll Trust Fund
183,725.95
127,908.39
Total Payroll Trust Fund
I 83,725.95
127,908 39
Public Assistance Trust Fund:
Public Assistance Trust Fund:
Cash and Investments - Treasurer
B-6
9,841.34
9,837.96
Reserve for Public Assistance
8-6
9,841.34
9,837.96
Total Public Assistance Trust Fund
9,841.34
9.837.96
Total Public Assistance Trust Fund
9,841.34
9,837.96
Community Dev!opement Block Grant Fund:
Community Devlopement Block Grant Fund:
Due from Midd. Cty CDBG
B-6
74,594.91
67,448.91
Due to Current Fund
B-6
8,200.00
Reserve for Comm. Dev. Block Expends.
8- 6
74 594.91
59,248.91
Total Comm. Develop. Block Grant Fund
74,594.91
67,448.91
Total Comm. Develop. Block Grant Fund
74,594.91
67,448.91
$
1,986,131.91
$
1,874,167.35
$
1,986,131.91
$
1,874.167.35
Note: See Notes to Financial Statements
21
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
TRUST ASSESSMENT FUND
Exhibit - B-1
STATEMENT OF FUND BALANCE - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2018
REF.
Balance - December 31, 201 7
B
$
5,565.77
Balance - December 31, 2018
B
$
5,565.77
Note: See Notes to Financial Statements
22
Exhibit - C
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
GENERAL CAP IT AL FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
DECEMBER 31, 2018 AND 2017
ASSETS
REF.
Cash and Investments - Treasurer
C-2
$
Grants - In - Aid, Loans and Other Receivable
C-4
Interfunds Receivable
C-7
Deferred Charges to Future Taxation:
Funded
Unfunded
LIABILITIES, RESERVES
AND FUND BALANCE
General Serial Bonds
Capital Leases Payable - M.C.I.A.
Loans Payable - N.J. Infrastructure
Loans Payable - N.J. Green Trust Fund - 1989
Bond Anticipation Notes
Reserve for Encumbrances Payable
Interfunds Payable
Improvement Authorizations:
Funded
Unfunded
Reserve for:
Capital Improvement Fund
Grants and Loans Receivable
Insurance Refund
To Pay Debt Service
Fund Balance
C-5
C-6
C-9
C-10
C-11
C-12
C-15
C-8
C-7
C-8
C-8
C-14
C-13
C-13
C-13
C-1
$
$
Bonds and Notes Authorized but not Issued
C-16
$
BALANCE
DECEMBER 31,
2018
1,512,647.34
$
2,296,591.68
7,164.08
9,698,288.15
7,968,881.79
BALANCE
DECEMBER 31,
2017
1,426,497.97
7,164.08
11,645,938.37
6,228,722.55
21,483,573.04
$
19,308,322.97
=========
7,466,000.00
1,689,177.24
487,447.68
55,663.23
3,400,000.00
2,739,089.59
786,987.42
1,287,754.56
1,849,391.86
7,775.58
1,623,923.15
4,838.08
84,989.08
535.57
21,483,573.04
$
8,432,000.00
2,556,267.01
590,301.01
67,370.35
1,409,753.13
786,987.42
1,785,549.58
3,243,660.61
41,834.58
324,908.55
4,838.08
64,317.08
535.57
19,308,322.97
4,568,881.79
$ ==6=,2=2=8,=7=22=.5=5=
23
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
GENERAL CAPITAL FUND
STATEMENT OF FUND BALANCE-REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2018
REF.
Balance - December 31, 2017
C
Balance -December 31, 2018
C
Note: See Notes to Financial Statements
Exhibit - C-1
$
535.57
$
535.57
24
Exhibit- D
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
SWIMMING POOL UTILITY FUND
COMPARATIVE BALANCE SHEET· REGULATORY BASIS
DECEMBERi!.,_2018 AND 2017
BALANCE
BALANCE
LIABILITIES, RESERVES
BALANCE
BALANCE
ASSJITJi
REF.
DEC. 31, 2018
DEC. 31 2017
AND FUND BALANC!;
REE
DEC. 31 2018
DEC.31 2017
Operating Fund:
Operating Fund:
Cash and Investments - Treasurer
D-5
$
l 92,586.82 $
203,695.18
Appropriation Reserves
D-4, D-l l $
54,017.98 $
66,805.18
Cash - Snack Bar Fund
D-5
3,008.51
3,006.75
Reserve for Encumbrances
D-4, D-11
15,581.68
6,395.92
Due from Swimming Pool Capital Fund
D-13
160,774.90
160,774.90
Accounts Payable
D-10
34,693.93
34,235.43
Due to Current Fund
D-13
56,651.63
76.18
356,370.23
367,476.83
Accrued Interest on Bonds
D-19
8,892.81
9,676.56
169,838.03
117,189.27
Fund Balance
D-l
186,532.20
250,287.56
Total Operating Fund
356,370.23
367,476.83
Total Operating Fund
356,370.23
367,476.83
Capital Fund:
Capital Fund:
Cash and Investments - Treasurer
D-5
66,454.79
130,485.78
Swim Pool Bonds
D-20
902,000.00
1,016,000.00
Fixed Capita!
D-8
666,291.56
666,291.56
Improvement Authorizations
Fixed Capital Authorized and Uncompleted
D-9
1,650,000.00
1,650,000.00
Funded
D-18
51,660.79
51,651.79
Unfunded
D-18
93,670.00
93,670.00
Tota! Capital Fund
2,382,746.35
2,446,777.34
Reserve for Encumbrances Payable
D-18
64,039.99
Capital lmprovment Fund
D-14
7,730.IO
7,730.10
Due to Swimming Pool Operating Fund
D-17
160,774.90
160,774.90
Reserve for:
Amortization
D-15
999,291.56
885,291.56
Deferred Amorti7..ation
D-16
165,000.00
165,000.00
Fund Balance
D-2
2,619.00
2,619.00
Total Capital Fund
2,382,746.35
2,446,777.34
$
2,739,116.58 $
2,814,254.17
$
2,739,116.58 $
2,814,254.17
There were Bonds and Notes Authorized but not Issued at December 31, 2018 and 2017 in the amount of $250,000.00. (Exhibit D-2 l)
Note: See Notes to Financial Statements
25
Exhibit • D-1
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
SWIMMING POOL UTILITY OPERA TING FUND
COMPARATIVE ST A TEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE - REGULATORY BASIS
FOR THE YEARS ENDED DECEMBER 31, 20 I 8 AND 20 I 7
REVENUE AND OTHER INCOME
YEAR2018
YEAR 2017
Fund Balance Utilized
D-1, D-3
$
128,060.00 $
155,000.00
Fees - Membership
D-3
264,155.90
276,587.50
Miscellaneous
D-3
109,647.41
106,108.19
Other Credits to Income:
Unexpend. Balance of Appropriation Reserves
Lapsed and Reserve for Encumb. Canceled
D-11
65,500.08
13,176.50
Total Revenues
567,363.39
550,872.19
EXPENDITURES
Budget and Emergency Appropiations:
Operating
D-4
$
503,058.75 $
527,000.75
Total Expenditures
503,058.75
527,000.75
Excess/(Deficit) in Revenues
64,304.64
23,871.44
FUND BALANCE
Balance - January l
D
250,287.56
381,416.12
314,592.20
405,287.56
Decreased by:
Utilized as Anticipated Revenue
D-1
128,060.00
155,000.00
Balance - December 31
D
$
186,532.20 $
250,287.56
Note: See Notes to Financial Statements
26
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. 2018
REF.
Balance - December 31, 201 7
D
Balance - December 31, 2018
D
Note: See Notes to Financial Statements
Exhibit - D-2
$
2,619.00
$
2,619.00
27
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
SWIMMING POOL UTILITY OPERATING FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2018
2018
REF.
BUDGET
REALIZED
Fund Balance
D- 1
$
128,060.00 $
128,060.00
Fees • Membership
D-1, D-5
270,000.00
264,155.90
Miscellaneous
D- 1
105,000.00
109,647.41
$
503,060.00 $
501,863.31
REF.
D-4
D- I
Analysis of Realized Revenues:
Analysis of Miscellaneous Revenues:
Snack Bar
D-7,D-12
$
12,381.66
Miscellaneous Revenues
D-7
97,265.75
D- I
$
109,647.41
Note: See Notes to Financial Statements
Exhibit · D-3
EXCESS OR
(DEFICIT)
$
(5,844.10)
4,647.41
$
(1,196.69)
28
Operating:
Salaries and Wages
$
Other Expenses
Debt Service:
Payment of Bond Principal
Interest on Bonds
Deferred Charges and Statutory Expenditures:
Statutory Expenditures:
Social Security System (O.A.S.l.)
State Unemployment Insurance
Tota[ Swimming Pool Utility Appropriations
$
Ref.
Cash Disbursements
D-5
Due to Current Fund
D-13
Accrued Interest Payable
D-19
Note: See Notes to Financial Statements
BOROUGH OF MlDDLESEX
MIDDLESEX COUNTY NEW JERSEY
SWIMMING POOL UTILITY OPERA TING FUND
STATEMENT OF EXPENDITURES - REGULA TORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2018
EXPENDED
2018
BUDGET
203,130.00
IS0,000.00
1 I4,000.00
20,330.00
!3,600.00
2,000.00
503,060.00
D-3
$
$
BUDGET AFTER
MODIFICATION
203,130.00
150,000.00
I 14,000.00
20,330.00
13,600.00
2,000.00
503,060.00
$
$
$
$
PAIDOR
CHARGED
182,529.28
102,636.15
114,000.00
20,328.75
13,600.00
364.91
433,459.09
D-1,D-5
377,658.34
35,472.00
20,328.75
433,459.09
ENCUMBERED
$
IS,581.68
$
IS,581.68
D, D-1
RESERVED
$
20,600.72
31,782.17
1,635.09
$
54,017.98
D, D-1
$
$
Exhibit - D-4
UNEXPENDED
BALANCE
CANCELLED
1.25
1.25
D-1
29
General Fixed Assets:
Land
Buildings
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
STATEMENT OF GOVERNMENTAL FIXED ASSETS
BALANCE SHEET- REGULATORY BASIS
DECEMBER 3 I, 2018
Machinery and Equipment
Total Governmental Fixed Assets
Investment in Governmental Fixed Assets
Note: See Notes to Financial Statements
Exhibit - E
BALANCE
DEC 31, 2018
$
5,864,700.00
6,533,000.00
9,371,724.00
$ 21,769,424.00
$ 21,769,424.00
30
Note I:
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
NOTES TO FINANCIAL ST A TEMENTS - REGULA TORY BASIS
YEARS ENDED DECEMBER 31, 2018 AND 2017
FORM OF GOVERNMENT
The Borough of Middlesex operates under the legislative Borough of N.J.S.A. 40A:60-1 et seq., which provides
for the election of a mayor to serve a term of four years and a council of six members serving three-year terms. At
its annual meeting, the council elects a president of the council who shall preside at all its meetings when the
mayor is not present. The mayor is the head of the municipal government and the council is the legislative body.
The Borough has adopted an administrative code, which provides for the delegation of a portion of executive
responsibilities to an administrator and the organization of the council into standing committees to oversee various
Borough activities.
Note 2:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A.
Reporting Entity
Except as noted below, the financial statements of the Borough of Middlesex include every board, body, officer or
commission supported and maintained wholly or in part by funds appropriated by the Borough of Middlesex, as
required by N.J.S.A. 40A:5-5. Accordingly, the financial statements of the Borough of Middlesex do not include
the operations of the municipal library.
B.
Description of Funds
The accounting policies of the Borough of Middlesex conform to the accounting principles applicable to
municipalities that have been prescribed by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey. Such principles and practices are designed primarily for determining
compliance with legal provisions and budgetary restrictions and as a means of reporting on the stewardship of
public officials with respect to public funds.
Under this method of accounting, the Borough of Middlesex
accounts for its financial transactions through the following separate funds:
Current Fund. resources and expenditures for goverrunental operations of a general nature, including Federal and
State grant funds, except as otherwise noted.
Trust Fund • receipts, custodianship and disbursement of funds in accordance with the purposes for which each
reserve was created. Pursuant to the provisions ofN.J.S.A. 40A:4-39, the financial transactions of the following
funds and accounts are also reported within the Trust Fund:
Trust Assessment Fund
Animal Control Trust Fund
Unemployment Compensation Insurance Trust Fund
Dedicated Law Enforcement Trust Fund
Developer's Escrow Fund
Uniform Fire Safety Act• Penalty Monies (N.J.S.A. 52:27D-192 et seq.)
Disposal ofForfeited 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.
31
Note 2:
B.
NOTES TO FINANCIAL STATEMENTS
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D):
Description of Funds (Cont'd.)
Governmental Fixed Assets • the Governmental Fixed Asset System is used to account for fixed assets used in
governmental fund type operations for control purposes. All fixed assets are valued at historical cost or estimated
historical cost if actual historical cost is not available or any other reasonable basis, provided such basis is
adequately disclosed in the financial statements. Donated fixed assets are valued at their estimated fair value on
the date of donation. No depreciation is recorded on general fixed assets.
The Governmental Accounting Standards Board (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 Hcurrent financial resources)) measurement
focus. The accounting principles and practices prescribed for municipalities by the Division differ in certain
respects from generally accepted accounting principles (GAAP) applicable to local government units. The most
significant is the reporting of entity-wide financial statements, which are not presented in the accounting principles
prescribed by the Division. The other more significant differences are as follows:
Revenues . Revenues are recorded as received in cash except for statutory reimbursements and grant funds which
are due from other governmental units. State and Federal grants, entitlements and shared revenues received for
operating purposes are realized as revenues when anticipated in the Borough's budget. Receivables for property
taxes and water and sewer consumer charges are recorded with offsetting reserves within the Current Fund. Other
amounts that are due to the Borough which are susceptible to accrual are recorded as receivables with offsetting
reserves. These reserves are liquidated and revenues are recorded as realized upon receipt of cash. GAAP
requires the recognition of revenues for general operations in the accounting period in which they become
available and measurable.
Expenditures • For purposes of financial reporting, expenditures are recorded as "paid or charged" or
"appropriation reserves". Paid or charged refers to the Borough's "budgetary" basis of accounting. Generally,
these expenditures are recorded when an amount is encumbered for goods or services through the issuance of a
purchase order in conjunction with the encumbrance accounting system. Reserves for unliquidated encumbrances
at the close of the year are reported as a cash liability. Encumbrances do not constitute expenditures under
GAAP.
Appropriation reserves refers to unexpended appropriation balances at the close of the year.
Appropriation reserves are automatically created and recorded as a cash liability, except for amounts, which may
be cancelled by the governing body.
Appropriation reserves are available until lapsed at the close of the
succeeding year, to meet specific claims, commitments or contracts incurred and not recorded in the preceding
fiscal year. Lapsed appropriation reserves are recorded as income. Generally, unexpended balances of budget
appropriations are not recorded as expenditures under GAAP.
32
NOTES TO FINANCIAL STATEMENTS
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
C.
Basis of Accounting (Cont'd.)
Expenditures (Cont'd.)
For the purpose of calculating the results of Current Fund operations, the regulatory basis of accounting utilized
by the Borough requires that certain expenditures be deferred, and raised as items of appropriation in budgets of
succeeding years. These deferred charges include the two general categories of overexpenditures and emergency
appropriations.
Overexpenditures occur when expenditures recorded as "paid or charged" exceed available
appropriation balances. Emergency appropriations occur when, subsequent to the adoption of a balanced budget,
the governing body authorizes the establishment of additional appropriations based on unforeseen circumstances
or for other special purposes as defined by statute. Overexpenditures and emergency appropriations are deducted
from total expenditures in the calculation of operating results and are established as assets for Deferred Charges
on the Current Fund balance sheet. GAAP does not permit the deferral of overexpenditures to succeeding budgets.
In addition, GAAP does not recognize expenditures based on the authorization of an appropriation. Instead, the
authorization of special purpose expenditures, such as the preparation of tax maps or revaluation of assessable real
property, would represent the designation of fund balance.
Compensated Absences - The Borough has adopted written policies via employee contracts and municipal
ordinances which set forth the terms under which an employee may accumulated earned, but unused, vacation and
sick leave, establishes the limits on such accumulations and specifies the conditions under which the right to
receive payment for such accumulations vests with the employee.
The Borough records expenditures for
payments of earned and unused vacation and sick leave in the accounting period in which the payments are made.
GAAP requires that expenditures be recorded in the governmental (Current) fund in an amount that would
normally be liquidated with available financial resources.
Property Acquired for Taxes - Foreclosed property is recorded in the Current Fund at the assessed valuation when
such property was acquired and is fully reserved. GAAP requires such property to be recorded in the general
fixed asset account group at the lower of cost or fair market value.
Sale of Municipal Assets - Cash proceeds from the sale of Borough owned property are reserved until utilized as
an item of anticipated revenue in a subsequent year budget. Year-end balances of such proceeds are reported as a
cash liability in the Current Fund. GAAP requires that revenue be recognized in the accounting period that the
terms of sales contracts become legally enforceable.
Interfunds • Interfund receivables in the Current Fund are recorded with offsetting reserves, which are created by
charges to operations. Income is recognized in the accounting period the receivables are liquidated. GAAP does
not require the establishment of offsetting reserves. lnterfund 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.
33
NOTES TO FINANCIAL STATEMENTS
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
C.
Basis of Accounting (Cont'd.)
Fixed Assets - Property and equipment purchased by the Current and the General Capital Funds are recorded as
expenditures at the time of purchase and are not capitalized.
Contributions in aid of construction are not
capitalized.
Governmental Fixed Assets - New Jersey Administrative Code 5:30-5.6 established a mandate for fixed asset
accounting by municipalities, effective December 31, 1985, which differs in certain respects from generally
accepted accounting principles, requires the inclusion of a statement of Governmental Fixed Assets of the
Borough as part of the basic financial statements. Public domain ("infrastructure") general fixed assets consisting
of certain improvements other than buildings, such as roads, bridges, curbs and gutters, streets and sidewalks and
drainage systems are not capitalized.
No depreciation has been provided for in the financial statements.
Accounting for utility fund "fixed capital" remains unchanged under the requirements ofregulation 5:30-5.6.
Property and equipment purchased by the Swinuning 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 OPEB Liabilities - With the implementation of GASB 75 for disclosure purposes, the Borough
has included information for OPEB (Postemployment Benefits Other Than Pensions) liabilities relating to
healthcare benefits provided to its retirees within the Notes to the Financial Statements and the accompanying
required supplementary information, if applicable. 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 OPEB liability
of the defined benefit healthcare plans in which its retirees are enrolled. GAAP requires the recognition of the
OPEB liability and associated deferred inflows and deferred outflows of financial resources in the entity-wide
financial statements.
34
NOTES TO FINANCIAL STATEMENTS
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
C.
Basis of Accounting
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.
Recent Accounting Standards
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 (J)
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 20 I 7. 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.
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.
GASB issued Statement No. 88 "Certain Disclosures Relate to Debt, Including Direct Borrowings and Direct
Placements" in April 2018. The primary objective of this Statement is to improve the information that is disclosed
in notes to government financial statements related to debt, including direct borrowings and direct placements. It
also clarifies which liabilities governments should include when disclosing information related to debt. The
requirements of this Statement are effective for reporting periods beginning after June 15, 2018. Earlier
application is encouraged.
35
NOTES TO FINANCIAL STATEMENTS
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
C.
Basis of Accounting (Cont'd.)
GASB issued Statement No. 89 "Accounting for Interest Cost Incurred before the End of a Construction Period"
in June 20 l 8. The objectives of this Statement are ( l) to enhance the relevance and comparability of information
about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest
cost incurred before the end of a construction period. This Statement establishes accounting requirements for
interest cost incurred before the end of a construction period. Such interest cost includes all interest that
previously was accounted for in accordance with the requirements of paragraphs 5-22 of Statement
No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989
FASB and AlCPA Pronouncements, which are superseded by this Statement. This Statement requires that interest
cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is
incurred for financial statements prepared using the economic resources measurement focus. As a result, interest
cost incurred before the end of a construction period will not be included in the historical cost of a capital asset
reported in a business-type activity or enterprise fund. The requirements of this Statement are effective for
reporting periods beginning after December 15, 2019. Earlier application is encouraged. The requirements of this
Statement should be applied prospectively.
GASB issued Statement No. 90 "Majority Equity Interests - an amendment of GASB Statements No. 14 and No.
61" in August 2018. The primary objectives of this Statement are to improve the consistency and comparability of
reporting a government's majority equity interest in a legally separate organization and to improve the relevance
of financial statement information for certain component units. It defines a majority equity interest and specifies
that a majority equity interest in a legally separate organization should be reported as an investment if a
government's holding of the equity interest meets the definition of an investment. A majority equity interest that
meets the definition of an investment should be measured using the equity method, unless it is held by a special-
purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent
and term endowments) or permanent fund. Those governments and funds should measure the majority equity
interest at fair value.
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 2017 financial statements to conform with
classifications used in fiscal year 2018.
36
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 Proiects
Issued:
General:
Bonds and Notes
Green Acres Loan
M.C.I.A. Capital Leases
NJ Environmental Infrastructure Loans
Swim Pool Utility
Bonds and Notes
Net Issued
Authorized But Not Issued:
General:
Bonds and Notes
Swim Pool Utility
Bonds and Notes
Total Authorized But
Not Issued
Net Bonds and Notes Issued and
Authorized but not Issued
$
2018
10,866,000.00
55,663.23
1,689,177.24
487,447.68
902,000.00
14,000,288.15
4,568,881.79
250,000.00
4,818,881.79
$ 18,819,169.94
$
2017
8,432,000.00
67,370.35
2,556,267.01
590,301.01
1,016,000.00
12,661,938.37
6,228,722.55
250,000.00
6,478,722.55
$ 19,140,660.92
37
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, 2018 and 2017:
General Debt:
$9,865,000, General Improvement Bonds
of 2010, due in annual installments
of $700,000 to $800,000 through Feb. I, 2025,
interest at 3.00% to 4.00%.
$2,878,000, General Improvement Bonds
of 2015, due in annual installments
of $273,000 to $326,500 through July 15, 2025,
interest at 2.00% to 2.50%.
$3,400,000, Bond Anticipation Note, mature on
June 27, 2019, interest at 2.75%
Subtotal - Serial Bond Debt and BAN's for Capital Projects
Outstanding December 31
Loans Outstanding:
Green Acres Loans
NJ Environmental Infrastructure Loans
MClA Capital Equipment Loan - 2008
MCIA Capital Equipment Loan - 2013
MCIA Capital Equipment Lease - 2014
MCIA Capital Equipment Loan - 2014
MCIA Capital Equipment Lease- 2015
Subtotal - Loans Outstanding
Subtotal General Debt
Swimming Pool Utility Debt:
$1,235,000, General Improvement Bonds
of 2015, due in annual installments
of $117,000 to $141,500 through July 15, 2025,
interest at 2.00% to 2.50%.
Total Outstanding Debt
2018
$ 5,365,000.00
2,101,000.00
3,400,000.00
10,866,000.00
55,663.23
487,447.68
1,030,000.00
25,456.61
155,453.32
478,267.31
2,232,288.15
13,098,288.15
902,000.00
$14,000,288.15
2017
$ 6,065,000.00
2,367,000.00
8,432,000.00
67,370.35
590,301.01
66,833.58
1,426,999.21
50,171.76
306,378.87
705,883.59
3,213,938.37
11,645,938.37
1,016,000.00
$12,661,938.37
38
NOTES TO FINANCIAL ST A TEMENTS
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:
2018
Gross Debt
Deductions
Net Debt
Local School District Debt
$ I ,795,000.00
$ I ,795,000.00
Swimming Pool Utility Debt
I, 152,000.00
1,128,091.20
$23,908.80
General Debt
17,667,169.94
84,989.08
$] 7,582,180.86
$20,614,169.94
$3,008,080.28
$17,606,089.66
Net Debt $17,606,089.66 Divided by Equalized Valuation Basis per N.J.S.A. 40A:2-2 as
amended $1,497,282,712.33 =
I.I 76%
2017
Local School District Debt
Swimming Pool Utility Debt
General Debt
Gross Debt
$2,265,000.00
1,266,000.00
17,874,660.92
$21,405,660.92
Deductions
$2,265,000.00
1,266,000.00
64,317.08
$3,595,317.08
Net Debt
$17,810,343,84
$17,810,343.84
Net Debt$ 1 7,8 I 0,343.84 Divided by Equalized Valuation Basis per N.J.S.A. 40A:2-2 as
amended $1,447,436,931.67 =
1.230%
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
Remaining Borrowing Power
2018
$52,404,894.93
17,606,089.66
$34,798,805.27
2017
$50,660,292.61
17 ,810,343,84
$32,849,948.77
39
NOTES TO FINANCIAL STATEMENTS
Note 3: DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION (CONT'D.)
B.
Summary of Statutory Debt Condition - Annual Debt Statement
Calculation of"Self-Liquidating Purpose"
Swimming Pool Utility Per N.J.S.A. 40A: 2-45
2018
2017
Cash Receipts From Fees, Rents or
Other Charges for the year
$
50 I ,863.31
$
537,695.69
Deductions:
Operating and Maintenance Costs
368,730.00
394,287.00
Debt Service
I 34,328.75
132,713.75
Excess/Deficit) in Revenue
$
(1,195.44)
$
10,694.94
C.
Schedule of General Capital Annual Debt Service for Principal and Interest for the
Bonded Debt Issued and Outstanding at December 31, 2018
Calendar
General
Year
Principal
Interest
Total
2019
$
973,000.00
$
220,928.75
$
1,193,928.75
2020
983,500.00
I 93,768.75
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
I, I 08,000.00
96,912.50
1,204,912.50
2024
I, I I 8,500.00
62,252.50
I, I 80,752.50
2025
1,116,500.00
23,856.45
1,140,356.45
Total
$
7,466,000.00
$
892,472.08
$
8,358,472.08
C.
Schedule of Swim Pool Utility Annual Debt Service for Principal and Interest for the
Bonded Debt Issued and Outstanding at December 31, 2018
Calendar
Swim Pool
Year
Principal
Interest
Total
2019
$
117,000.00
$
I 9,402.50
$
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
$
902,000.00
$
83,368.55
$
985,368.55
40
NOTES TO FINANCIAL STATEMENTS
Note 3: DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION (CONTD.)
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: 2-1 et seq. the loan principal in the amount of $55,663.23 and $67,370.35 at December 31, 2018
and 2017 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. Infonnation 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
Fina! 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. I
2.110% - 5.160%
Mar. I & Sept. I
19
Sept. I, 2024
Oct. 15, 2004
Nov. 4, 2004
$844,827.50
Feb 1 &Aug. I
38
Aug. 1, 2024
41
NOTES TO FINANCIAL STATEMENTS
Note 3: DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITION (CONT'D.)
D.
Loan Agreements (Cont'd.)
Capital Equipment and Improvement Revenue Bonds, Series 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 l 0 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 $50,330.0 l 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 lmprovement Revenue Bonds, Series 2013
The Borough entered into a capital equipment loan agreement with the Middlesex County Improvement Authority
- Capital Equipment and Improvement Revenue Bonds, Series 2013 in the amount of$2,900,567.38 for the
acquisition of 10 year capital equipment. The loan obligation is due in ten annual installments commencing with a
principal payment of $360,260.22 for 2014 and remaining principal payments spread over a nine year period with
amounts ranging from $360,034.60 through $220,000.00 and bearing interests rates ranging between 2.000% for
calendar year 2014 and 4.000% for calendar year 2023.
Capital Equipment and Improvement Revenue Bonds, Series 2014
The Borough entered into a capital equipment loan agreement with the Middlesex County Improvement Authority
- Capital Equipment and Improvement Revenue Bonds, Series 2014 in the amount of $738,861.92 for the
acquisition of 5 year capital equipment The loan obligation is due in five annual installments commencing with a
principal payment of $142,296.86 for 2015 and remaining principal payments spread over a four year period with
amounts ranging from $143,656.53 through $155,453.32 and bearing interests rates ranging between 1.500% for
calendar year 2015 and 3 .000% for calendar year 2019.
Capital Equipment and Improvement Revenue Bonds, Series 2014
The Borough entered into a capital equipment lease agreement with the Middlesex County Improvement Authority
~ Capital Equipment and Improvement Revenue Bonds, Series 2014 in the amount of $120,994.00 for the
acquisition of 5 year capital equipment. The loan obligation is due in five annual installments commencing with a
principal payment of $23,302.14 for 2015 and remaining principal payments spread over a four year period with
amounts ranging from $23,524.80 through $25,456.61 and bearing interests rates ranging between 1.500% for
calendar year 20! 5 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.
42
NOTES TO FINANCIAL STATEMENTS
Note 4: FUND BALANCES APPROPRIATED
Fund balances at December 3 I, 2018 and 2017 were appropriated and included as anticipated revenue in their
own respective funds for the year ending December 31, 2018 and 2017 as follows:
Current Fund
Swimming Pool Utility Fund
Current Fund
Swimming Pool Utility Fund
Fund Balance
December 31,20 I 8
$2,586,086.89
186,532.20
Fund Balance
December 31,2017
$3,190,644.60
250,287.56
Note 5:
DEPOSITS AND INVESTMENTS
Utilized in
Succeeding Budget
$2,200,000.00
78,628.00
Utilized in
Succeeding Budget
$2,211,000.00
128,060.00
The Borough considers change funds, cash in banks and certificates of deposit as cash and cash equivalents.
Deposits
New Jersey statutes permit the deposit of public funds in institutions located in New Jersey, which are insured by
the Federal Deposit Insurance Corporation (FDIC) or by any other agencies of the United States that insures
deposits or the State of New Jersey Cash Management Fund. New Jersey statutes require public depositories to
maintain collateral for deposit of public funds that exceed insurance limits to protect deposits from loss under the
provisions of the Governmental Unit Deposit Protection Act ("GUDPA"). GUDPA was enacted in 1970 to
protect Governmental Units from a loss of funds on deposit with a failed banking institution in New Jersey.
N.J.S.A. 17:9-41 et. seq. establishes the requirements for the security of deposits of governmental units. The
statute requires that no governmental unit shall deposit public funds in a public depository unless such funds are
secured in accordance with the Act. Public depositories include Savings and Loan institutions, banks (both state
and national banks) and savings banks the deposits of which are federally insured. All public depositories must
pledge collateral, having a market value at least equal to five (5) percent of the average daily balance of collected
public funds; or if the public funds deposited exceed 75 percent of the capital funds of the depository, the
depository must provide collateral having a market value equal to 100 percent of the amount exceeding 75
percent, to secure the deposits of governmental units.
All collateral must be deposited with the Federal Reserve Bank, the Federal Home Loan Bank Board or a banking
institution that is a member of the Federal Reserve System and has capital funds of not less that $25,000,000. If a
public depository fails, the collateral it has pledged, plus the collateral of all other public depositories, is available
to pay the full amount of their deposits to the Governmental Units.
At December 31, 2018 and 2017, the book value of the Borough's deposits were $7,544,574.34 and
$7,890,631.66 and the bank balances of the Borough's cash and deposits amounted to $7,493,898.02 and
$7,921,6 I 1.05, respectively. Of the bank balance, during 2018 and 2017, $250,000.00 and $250,000.00 was FDIC
insured and $7,243,898.02 and $7,671,611.05 were GUDPA insured.
43
NOTES TO FINANCIAL ST A TEMENTS
Note 5:
DEPOSITS AND INVESTMENTS (CONT'D.)
Deposits (Cont'd.)
At December 31, 2018, 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 fmancial institution, or collateralized with securities held by the
pledging financial institution's trust department or agent but no in the depositor-governments
name. The deposit risk is that, in the event of the failure of a depository financial institution, the
Borough will not be able to recover deposits or will not be able to recover collateral securities that
are in possession of an outside party.
The Borough's investment securities are exposed to
custodial credit risk if the securities are uninsured, are not registered in the name of the Borough
and are held by either: the counterparty or the counterparty's trust department or agent but not in
the Borough's name. The investment risk is that, in the event of the failure of the counterparty to a
transaction, the Borough will not be able to recover the value of the investment or collateral
securities that in possession of an outside party.
(b) Concentration of Credit Risk - This is the risk associated with the amount of investments that
Borough has with 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, 2018, based upon the insured balances provided by the FDIC and NJGUDPA coverage, no
amounts of the Borough's bank balances were 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;
44
NOTES TO FINANCIAL STATEMENTS
Note 5:
DEPOSITS AND INVESTMENTS (CONT'D.)
Investments /Cont'd.)
2.
Government money market mutual funds;
3.
Any obligation that a federal agency or a federal instrumentality has issued in accordance with an act of
Congress, which security has a maturity date not greater than 397 days from the date of purchase, provided
such obligation bear a fixed rate of interest not dependent on any index or other external factor;
4.
Bonds or other obligations of the local unit or bonds or other obligations of school districts of which the local
unit is a part or within which the school district is located;
5.
Bonds or other obligations, having a maturity date of not more than 397 days from the date of purchase,
approved by the Division of Investment in the Department of the Treasury for investment by local units;
6.
Local government investment pools;
7.
Deposits with the State of New Jersey Cash Management Fund established pursuant to section I of P.L. 1997,
C. 281 (C.52: I 8A-90.4); or
8.
Agreements for the repurchase of fully collateralized securities, if:
a. the underlying securities are permitted investments pursuant to paragraphs (I) and (3);
b. the custody of collateral is transferred to a third par(y;
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 I of P .L. I 970, c.
236 (C. I 9:9-4 I) 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 $247,290.64 and
$242,828.89 at December 31, 2018 and 2017, respectively.
Cash & Cash Equivalents:
Change Fund
Demand Accounts
Total Cash & Cash Equivalents
Investments:
State of NJ Cash Mgmt. Fund
Total Cash, Cash Equivalents & Investments
2018
Amount
$500.00
7 544 074.34
7,544,574.34
247 290.64
$7 791 864.98
2017
Amount
$500.00
7,890,131.66
7,890,631.66
242,828.89
$8 133,460 55
45
Note 6:
NOTES TO FINANCIAL ST A TEMENTS
ASSESSMENT AND COLLECTION OF PROPERTY TAXES
New Jersey statutes require that taxable valuation ofreal property be prepared by the Borough Tax Assessor as of
October 1 in each year and filed with the County Board of Taxation by January 10 of the following year. Upon
the filing of certified adopted budgets by the Borough, Local School District and County the tax rate is struck by
the board based on the certified amounts in each of the taxing districts for collection to fund the budgets.
Pursuant to statute, this process is to be completed on or before May 3, with a completed duplicate of the tax rolls
to be delivered to the Borough Tax Collector on or before May 13th.
Tax bills are prepared and mailed by the Collector of Taxes of the Borough annually and set forth the final tax for
the tax year. The bill contains a credit for preliminary amounts billed previously with the balance payable in equal
installments on August 1" 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 10 days for each
payment period and the Borough granted this option to taxpayers. Taxes become delinquent if not paid on the
installment dates and become subject to interest penalties of 8% to 18% of the amount delinquent, and if a
delinquency (including interest) is in excess of $ I 0,000.00 and remains in arrears after December 31, an
additional flat penalty of 6% may be charged against the delinquency. If taxes are delinquent on or after April I st
of the succeeding year, the delinquent amount is subject to "Tax Sale" which places a tax lien on the property
allowing the holder to enforce the tax lien by collection or foreclosure. New Jersey property tax laws establish a
tax lien on real estate as of January 1st of the current tax year even though the amount due is not known.
Note 7.
PENSION PLANS
Description of Plans - The State of New Jersey, Division of Pension and Benefits (the Division) was created and
exists pursuant to N.J.S.A. 52: 18A to oversee and administer the pension trust and other postemployment benefit
plans sponsored by the State of New Jersey (the State). According to the State of New Jersey Administrative
Code, all obligations of the Systems will be assumed by the State of New Jersey should the plans terminate. Each
defined benefit pension plan's designated purpose is to provide retirement, death and disability benefits to its
members. The authority to amend the provision of plan rests with new legislation passed by the State of New
Jersey. Pension reforms enacted pursuant to Chapter 78, P.L. 2011 included provisions creating special Pension
Plan Design Committees for the Public Employees Retirement System (PERS) and the Police and Firemen's
Retirement System (PFRS), once a Target Funded Ratio (TFR) is met, that will have the discretionary authority to
modify certain plan design features, including member contribution rate; formula for calculation of final
compensation or final salary; fraction used to calculate a retirement allowance; age at which a member may be
eligible and the benefits for service or early retirement; and benefits provided for disability retirement. The
committee will also have the authority to reactivate the cost of living adjustment (COLA) on pensions. However,
modifications can only be made to the extent that the resulting impact does not cause the funded ratio to drop
below the TFR in 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:
46
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, 2018 and 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
2018
174,904
589
254,780
430 273
1,708
2017
170,124
650
254,685
425 459
1,705
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, 2018 and 2017 the Borough's total payroll for all employees was $7,543,883.49
and $7,426,271, respectively. Total PERS covered payroll was $2,742,406 and $2,786,154, respectively.
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 P .L. 2011,
C. 78, 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 7.34% in State
fiscal year 2018. The phase-in of the additional incremental member contribution rate takes place in July of each
subsequent State fiscal year. 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, 2018 and 2017 were $344,023 and $328,116, respectively.
Borough Contributions are due and
payable on April 1st 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, 2018 and 2017 consisted of the
following:
47
NOTES TO FINANCIAL STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
A. Public Employees' Retirement System (PERS) (Cont'd.)
2018
2017
Normal Cost
$42,424
$48,287
Amortization of Accrued Liability
264,183
245,738
Total Pension
306,607
294,025
NCGI Premiums
15 711
14 674
Total Pension & NCGI
322,318
308,699
Additional Billings:
LTD Expense
3,167
1,112
Ch. 19, P.L. 2009
18,538
18,305
Total PERS Payment
$ 344 023
$ 328 1 Hi
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 returr 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
I
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 1155th 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
1160th 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 years or more of service credit before age 62, and tier 5 with 30 years or
more 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 I 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 IO years of service credit and have
not reached the service retirement age for the respective tier.
48
NOTES TO FINANCIAL ST A TEMENTS
Note 7.
PENSION PLANS (CONT'D.)
A. Public Employees' Retirement System (PERS) (Cont'd.)
Pension Liabilities, Pension Expense, Deferred Outflows of Resources, ond 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, 2018, the PERS reported a net pension liability of $19,689,501,539 for its Local (Non-State)
Employer Member Group. The Borough's proportionate share of the net pension liability for the Local Employer
Member Group that is attributable to the Borough was $7,733,084 or 0.03927516% an increase of0.00448216%
from its proportion measured as of June 30, 2017. At June 30, 2017, the PERS reported a net pension liability of
$23,278,401,588 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 $8,099,204 or
0.034793%.
Actuarial Assumptions- The collective total pension liability for the June 30, 2018 measurement date was
determined by an actuarial valuation as of July I, 2017, which was rolled forward to June 30, 2018. This actuarial
valuation used the following actuarial assumptions:
Inflation
Salary Increases: Through 2026
Thereafter
Investment rate ofreturn
2.25%
1.65-4.15% Based on age
2.65-5.15% Based on age
7.00%
Preretirement 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 Conduent modified 2014 projection scale. Postretirement 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. In addition, the tables for service retirements and beneficiaries
of former members provide for future improvements in mortality from 2012 to 2013 using Projection Scale AA
and using a generational approach based on the Conduent 2014 projection scale thereafter. 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, 2017 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% at June 30, 2018)
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.
49
NOTES TO FINANCIAL ST A TEMENTS
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 ofreturn for each major asset class included in PERS's target asset allocation as of June 30, 2018
are summarized in the following table:
Asset Class
Risk mitigation strategies
Cash equivalents
U.S. Treasuries
Investment grade credit
High yield
Global diversified credit
Credit oriented hedge funds
Debt related private equity
Debt related real estate
Private real estate
Equity related real estate
U.S. equity
Non-U.S. developed markets equity
Emerging markets equity
Buyouts/venture capital
Target
Allocation
5.00%
5.50%
3.00%
10.00%
2.50%
5.00%
1.00%
2.00%
1.00%
2.50%
6.25%
30.00%
11.50%
6.50%
8.25%
Long-Term
Expected Real
Rate of Return
5.51%
1.00%
1.87%
3.78%
6.82%
7.10%
6.60%
10.63%
6.61%
11.83%
9.23%
8.19%
9.00%
11.64%
13.08%
Discount Rate -The discount rate used to measure the total pension liability was 5.66% as of June 30, 2018. 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 3.87% as of June 30, 2018 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 50% of the
actuarially determined contributions and the local employers contributed I 00% 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 June 30, 2046. Therefore, the long-term
expected rate ofretum on plan investments was applied to projected benefit payments through June 30, 2046 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 collective net pension liability of PERS
participating employers as of June 30, 2018, 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 I percentage point
lower or 1 percentage rate higher than the current rate:
At 1 % Decrease
At current discount rate
At 1 % increase
(4.66%)
(5.66%)
(6.66%)
State
$27,413,044,035
$23,704,298,093
$20,597,322,253
Local
24,757,279,564
19,689,501,539
15,437,959,879
PERS Plan Total
$52,llQ 323,522
$'13 323,122 632
$36 Q35 282 132
Borough's proportionate share
of the net pension liability
$2123,461
$7,733 Q84
$6 Q63 283
50
NOTES TO FINANCIAL STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
A. Public Employees' Retirement System (PERS) (Cont'd.)
Components of Net Pension Liability- The components of the collective net pension liability for PERS, including
the State of New Jersey, at June 30, 20 I 8 is as follows:
State
Local
Total
Total Pension Liability
$30,434,600,657
$42,431,573,5 l l
$72,866, l 74,168
Plan Fiduciary Net Position
6,730,302,564
22,742,071,972
29,472,374,536
Net Pension Liability
$23,704 228 Q23
$19,689,501 539
$43,323,722,632
At December 3 l, 20 l 8, the Borough's deferred outflow of resources and deferred inflow of resources related to
PERS were from the following sources, if GASB 68 was recognized:
Difference between expended and actual experience
Change in assumptions
Net difference between projected and actual earnings
On pension plan investments
Changes in proportion and differences between Borough
Contributions and proportionate share of contributions
Borough contributions subsequent to the
measurement date
Total
Deferred Outflows
Of Resources
$147,471
l ,274,284
l ,063,852
344 023
$2 829 630
Deferred Inflows
Of Resources
$39,874
2,472,629
72,537
$2 585,040
Collective Deferred Outflows of Resources and Deferred Inflows of Resources - $344,023 is reflected above as
deferred outflows of resources related to pensions resulting from Borough contributions subsequent to the
measurement date. Other 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
2019
2020
2021
2022
2023
Total
Additional Information
Amount
$301,630
175,662
(284,133)
(257 ,4 I 0)
(35,182)
$(29 433)
Collective balances at June 30, 20 l 8
Collective deferred outflows of resources
Collective deferred inflows ofresources
Collective net pension liability- Local group
Borough's Proportion
$4,684,852,302
7,646,736,226
19,689,501,539
0.03927516%
51
NOTES TO FINANCIAL STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
B. Police and Firemen's Retirement System (PFRS) (Cont'd.)
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
30,2018 and 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
2018
43,755
39
41 517
~
586
2017
43,011
47
40 789
~
586
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, 2018 and 2017 the Borough's total payroll for all employees was $7,543,883.49
and $7,426,271, respectively. Total PFRS covered payroll was $3,049,750 and $2,802,491, respectively. 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 P.L. 2011,
C. 78, the active member contribution rate was 10.0% in State fiscal year 2018. Employers' contributions are
based on an actuarially determined amount, which includes the normal cost and unfunded accrued liability. The
armual 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, 2018 and 2017
were $741,l 12 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, 2018 and 2017 consisted of the following:
2018
2017
N orrnal Cost
$216,365
$223,141
Amortization of Accrued Liability
450 418
403 933
Total Pension
666,783
627,074
NCGI Premiums
28.077
28.500
Total Regular Billing
694,860
655,574
Additional Billings:
Ch. 19, P.L. 2009
46.252
45 788
Total PFRS Payment
$ 741 112
$ 7Ql 362
The vesting and benefit provisions are set by N.J.S.A. 43:16A. PFRS provides retirement as well as death and
disability benefits. All benefits vest after ten years of service, except disability benefits, which vest after four
years of service.
52
NOTES TO FINANCIAL STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
B. Police and Firemen's Retirement System /PFRS) /Cont'd.)
The following represents the membership tiers for PFRS:
Tier
Definition
I
Members who were enrolled prior to May 22, 20 JO
2
Members who were eligible to enroll on or after May 22, 20 JO and prior to June 28, 2011
3
Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits are available at age 55 and are generally determined to be 2% of final compensation
for each year of creditable service, as defined, up to 30 years plus 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, 2018, the PFRS reported a net pension liability of$!3,531,648,591 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 $11,108,633 or 0.082094%. 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%.
Actuarial Assumptions- The collective total pension liability for the June 30, 2018 measurement date was
determined by an actuarial valuation as of July I, 2017, which was rolled forward to June 30, 2018. 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%
Preretirement mortality rates were based on the RP-2000 Combined Healthy Mortality tables projected on a
generational basis from the base year of 2000 to 2013 using Projection Scale BB and the Conduent modified 2014
projection scale thereafter. For preretirement accidental mortality, a custom table with representative rates was
used and there is no mortality improvement assumed. Post-retirement mortality rates for male service retirements
are based the RP-2000 Combined Healthy Mortality Tables projected on a generational basis using Projection
Scale AA from the base year of 2012 to 2013 and the Conduent modified 2014 projection scale thereafter.
Postretirement mortality rates for female service retirements and beneficiaries were based on the RP-2000
Combined Healthy Mortality Tables projected on a generational basis from the base year of2000 to 2013 using
Projection Scale BB and the Conduent modified 2014 projection scales thereafter. Disability mortality rates were
based on a custom table with representative rates and no mortality improvement assumed.
53
NOTES TO FINANCIAL STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
B. Police and Firemen's Retirement System /PFRS) /Cont'd.)
The actuarial assumptions used in the July I, 2017 valuation were based on the results of an actuarial experience
study forthe period July I, 2010 to June 30, 2013.
The long-term expected rate of return on plan investments (7.00% at June 30, 2018) 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-tenn expected rate of return was determined using a
building block method in which best-estimate ranges of expected future real rates of return ( expected returns, net
of pension plan investment expense and inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of return by weighting the expected future real rates of return by
the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic rates of return
for each major asset class included in PFRS's target asset allocation as of June 30, 2018 are summarized in the
following table:
Long-Tenn
Asset Class
Target
Expected Real
Allocation
Rate of Return
Risk mitigation strategies
5.00%
5.51%
Cash equivalents
5.50%
1.00%
U.S. Treasuries
3.00%
1.87%
Investment grade credit
10.00%
3.78%
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 6.51 % as of June 30, 2018. This
single blended discount rate was based on the long-tenn expected rate of return on pension plan investments of
7.00% and a municipal bond rate of 3.87% as of June 30, 2018 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 50% of the actuarially determined contributions and the local employers contributed
I 00% 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 June 30,
2062. Therefore, the long-term expected rate of return on plan investments was applied to projected benefit
payments through June 30, 2062, and the municipal bond rate was applied to projected benefit payments after that
date in determining the total pension liability.
54
NOTES TO FINANCIAL ST A TEMENTS
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, 2018, 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 l % increase
(5.14%)
(6.14%)*
(7.14%)
State
$ 5,090,302,750
$ 4,329,304,276
$3,702,605,881
Local
20,570.435, 198
15 369 699 278
11 080 039 474
PFRS Plan Total
$25,660,737,948
$19,699,003,554
$14,782,645,355
Borough Share
$16 887 0.11
$]] 108,633
$2,026 016
*- Local Share includes $1,838,050,687 of Special Funding Situation allocated to the State of NJ as a non-
employer.
Components of Net Pension Liability- The components of the collective net pension liability of the participating
employers for PFRS, including the State of New Jersey, at June 30, 2018 is as follows:
State
Local
Total
Total Pension Liability
$ 5,837,506,505
$40,960,053,149
$46,797,559,654
Plan Fiduciary Net Position
1,508,202,229
25,590,353,871
27,098,556,100
Net Pension Liability
$ 4 322 304 216
$]5,369 699 218
$12 622,QQ3 554
At December 31, 20 I 8, the Borough's deferred outflow of resources and deferred inflow of resources related to
PFRS were from the following sources, if GASB 68 was recognized:
Difference between expended and actual experience
Change in assumptions
Net difference between projected and actual earnings
On pension plan investments
Changes in proportion and differences between Borough
Contributions and proportionate share of contributions
Borough contributions subsequent to the
measurement date
Total
Deferred Outflows
Of Resources
$113,016
953,527
809,266
741 112
$2 616,921
Deferred Inflows
Of Resources
$45,970
2,846,951
60,774
236,751
$3 190 446
55
NOTES TO FINANCIAL ST A TEMENTS
Note 7.
PENSION PLANS (CONT'D.)
B. Police and Firemen's Retirement System (PFRS) (Cont'd.)
Collective Deferred Outflows of Resources and Deferred Inflows of Resources - $74 I, 112 is reflected above as
deferred outflows of resources related to pensions resulting from Borough contributions subsequent to the
measurement date. 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
2019
$205,314
2020
(146,420)
2021
(751,630)
2022
(507,423)
2023
(114,478)
Total
$(1314637)
Additional Information
Collective balances at June 30, 2018
Collective deferred outflows ofresources
Collective deferred inflows ofresources
Collective net pension liability - Local group
Borough's Proportion
Special Funding Situation
$1,988,215,695
4,286,994,294
15,369,699,278
0.0820937134%
The Borough is responsible for the actuarially determined annual contributions to the PFRS, except where
legislation was passed that legally obligates the State if certain circumstances occur. A special funding situation
exists for the Local employers of the PFRS. The State of New Jersey, as a non-employer, is required to pay the
additional costs incurred by Local employers based upon the provisions of several legislative actions. The
provisions of GASB Statement No. 68 define this these relationship as a "special funding situation", and the State
of New Jersey is defined as a "non-employer contributing entity".
Unaudited data provided by the PFRS indicates that the total Non-employer contributions made to the PFRS by
the State for the year ended June 30, 2018 was $108,857,000. The portion of that contribution allocated to the
Borough was $89,365, or 0.0820937%.
The June 30, 2018 State special funding situation pension expense of
$217,714,180 was actuarially determined and represents the required contribution due from the State for the year.
The special funding situation net pension liability under the special funding situation was reported at
$1,838,050,687 at June 30, 2018 and represents the accumulated difference between the actuarially determined
annual contributions required and the actual State contributions through the valuation date.
The Borough's
allocated shares of the special funding situation pension expense for the year ended June 30, 2018 and its share of
the special funding situation NPL at that date were $178,730 and $1,508,924, respectively.
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:
56
NOTES TO FINANCIAL STATEMENTS
Note 7.
PENSION PLANS (CONT'D.)
C. Defined Contribution Retirement System (DCRP) (Cont'd.)
Plan Membership and Contributing Employers- Enrollment in the DCRP is required for state or local officials,
elected or appointed on or after July 1, 2007; employees enrolled in TPAF or PERS on or after July I, 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 ofat 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 JRC Section 40I(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, 2018 and 2017 the Borough's total payroll for all employees was 7,543,883.49
and $7,426,271, respectively. Total DCRP covered payroll was $361,23 I and $321,2 I 9, respectively. 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 3 I, 2018 were $10,837 and $21,888,
respectively. And for the year ended December 31,2017 were $9,637 and $19,432, respectively.
D. Cumulative PERS and PFRS Deferred Outflows of Resources and Deferred Inflows of Resources
Net Pension
Deferred Outflows
Deferred
Total Pension
Liability
Inflows
Expense
PERS
$7,733,084
$2,485,607
$2,585,040
$719,795
PFRS
11,108,633
1,875,809
3190447
1,000,724
Total
$llM)~
$4361416
$5 775 487
$1720519
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 I 964.
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.
57
NOTES TO FINANCIAL STATEMENTS
Note 8:POST RETIREMENT HEALTH BENEFITS (CONT'D)
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:
1. Any eligible employee who was retired as of June 28, 2011 (the effective date of Ch. 78, P.L.2011) is not
required to contribute to the cost of benefits.
2. Active employees who had accrued 25 years of service at June 28,201 l will not be required to contribute
to the costs of benefits upon retirement.
3. Active employees who had accrued 20 years of service al June 28, 20 I 1 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, 2018 were $1,170,519.97,
which equaled the required contributions for the year. There were approximately 49 retired participants eligible at
December 31, 2018.
Plan Description and Benefits Provided:
P.L. 1987, c.384 and P.L. 1990, c.6. required the Public Employees Retirement System (PERS) to fund post-
retirement medical benefits for those members who retire after accumulating a minimum of 25 years of credited
service or on a disability retirement. Pursuant to P.L 2007, c. 103, separate funds outside the pension plans were
established for the funding and payment of post-retirement medical benefits for retired state employees and retired
educational employees.
Coverage is provided at no cost to members of the PERS that had retired on a disability retirement or retired after
accumulating 25 years of creditable service prior to June 28, 2011 and to those who had a minimum of 20 years of
creditable service on June 28, 2011 and who subsequently retire after accumulating 25 years of credited service or
on a disability retirement. Employees who had less than 20 years of creditable service on June 28, 2011 and
subsequently retire after accumulating a minimum of 25 years of creditable service are required by Chapter 78,
P.L. 2011 to contribute a percentage of the cost of their health care coverage in retirement. The percentage of the
premium that will be the responsibility of the retiree is determined based upon the retiree's annual retirement
benefit and level of coverage. Chapter 78 retirees opting for single will make contributions that escalate from
4.5% for aunual retirement allowance under $20,000 to 35.0% for annual retirement allowances exceeding
$110,000 per annum. Chapter 78 retirees opting for family coverage will range from 3.43% for annual retirement
allowances under $25,000 per annum to 35.0% for aunual retirement allowances exceeding $1 I 0,000 per annum.
Total OPEB Liability
Special Funding Situation
The State of New Jersey's Total OPEB Liability for special funding situation was $6,213,844,492 and
$8,695,413,135 at June 30, 2018 and 2017, respectively.
Under Chapter 330, P.L. 1997, the State shall pay the premium or periodic charges for the qualified local police
and firefighter retirees and dependents equal to 80 percent of the premium or periodic charge for the category of
coverage elected by the qualified retiree under the State managed care plan or a health maintenance organization
participating in the program providing the lowest premium or periodic charge. The State also provides funding for
retiree health benefits to survivors of local police officers and firefighters who die in the line of duty under
Chapter 271, P.L.1989.
58
NOTES TO FINANCIAL STATEMENTS
Note 8:POST RETIREMENT HEALTH BENEFITS (CONT'D)
Therefore, these employers are considered to be in a special funding situation as defined by GASB Statement No
75 and the State is treated as a nonemployer contributing entity. Since the local participating employers do not
contribute under this legislation directly to the plan, there is no net OPEB liability, deferred outflows of resources
or deferred inflows ofresources to report in the financial statements of the local participating employers related to
this legislation.
The special funding situation is not applicable to the Borough of Middlesex therefore no amount of the State's
proportionate share of the net OPEB liability is attributable to the Borough.
Nonspecial Funding Situation:
The State of New Jersey's Total OPEB Liability for nonspecial funding situation was $9,452,773,649 and
$11,720,375,604 at June 30, 2018 and 2017, respectively.
The amounts of the State's Non-employer OPEB Liability that are attributable to employees and retirees of the
Borough of Middlesex was $20,422,220 and $24,907,671 at June 30, 2018 and 20 I 7, respectively. These
allocated liabilities represent 0. I 30355% and 0.122002% of the State's Total Non-employer OPEB Liability for
June 30, 2018 and 2017, respectively.
Components of Net OPES Liability - The components of the collective net OPEB liability of the participating
employers in the Plan, at June 30, 2018 and 2017 is as follows:
2018
2017
Total OPEB Liability
$15,981,103,227
$20,629,044,656
Plan Fiduciary Net Position
314,485,086
213,255,917
Net OPEB Liability
$15 666,618 141
$20,115 788 739
Plan fiduciary net position as a percentage
of the total OPEB liability
1.97%
1.03%
Actuarial Assumptions and Other Inputs:
The total OPEB liability as of June 30, 2018 and 2017 was determined by an actuarial valuation as of June 30,
2017 and 2016, which was rolled forward to June 30, 2018 and 2017. The actuarial assumptions vary for each
plan member depending on the pension plan the member is enrolled in.
This actuarial valuation used the following actuarial assumptions, applied to all periods in the measurement:
Inflation
Salary Increases*:
Through 2026
Thereafter
2.50%
1.65%-8.98%
2.65%-9.98%
* Salary increases are based on the defined benefit plan that the member is enrolled in and his or her age.
Preretirement mortality rates were based on the RP-2006 Headcount-Weighted Healthy Employee Male/Female
mortality table with fully generational mortality improvement projections from the central year using the MP-2017
scale. Postretirement mortality rates were based on the RP-2006 Headcount-Weighted Healthy Annuitant
Male/Female mortality table with fully generational improvement projections from the central year using the MP-
2017 scale. Disability mortality was based on the RP-2006 Headcount-Weighted Disabled Male/Female mortality
table with fully generational improvement projections from the central year using the MP-2017 scale.
59
NOTES TO FINANCIAL STATEMENTS
Note 8:POST RETIREMENT HEALTH BENEFITS (CONT'D)
Certain actuarial assumptions used in the June 30, 2017 valuation were based on the results of the pension plans'
experience studies for which the members are eligible for coverage under this Plan - the Police and Firemen
Retirement System (PFRS) and the Public Employees' Retirement System (PERS). The PFRS and PERS
experience studies were prepared for the periods July l, 2010 to June 30, 2013 and July l, 2011 to June 30, 2014,
respectively.
100% of active members are considered to participate in the Plan upon retirement.
Healthcare Trend Assumptions:
For pre-Medicare preferred provider organization (PPO) and health maintenance organization (HMO) medical
benefits, the trend rate is initially 5.9% and decreases to a 5.0% long-term trend rate after nine years. For self-
insured post-65 PPO and HMO medical benefits, the trend rate is 4.5%. For prescription drug benefits, the initial
trend rate is 10.5% decreasing to a 5.0% long-term trend rate after eight years. For the Medicare Part B
reimbursement, the trend rate is 5.0%. The Medicare Advantage trend rate is 4.5% and will continue in all future
years.
Discount Rate:
The discount rate for June 30, 2018 and 2017 was 3.87% and 3.58%, respectively. This represents the municipal
bond return rate as chosen by the State. The source is 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. As the long-
term rate of return is less than the municipal bond rate, it is not considered in the calculation of the discount rate,
rather the discount rate is set at the municipal bond rate.
Sensitivity of the State's Net OPES Liability to Changes in the Discount Rate:
The following presents the collective net OPEB liability of the participating employers as of June 30, 2018,
calculated using the discount rate as disclosed above as well as what the collective net OPEB liability would be if
it was calculated using a discount rate that is !-percentage point lower or !-percentage- point higher than the
current rate:
Total Net OPEB Liability
Borough's Share
1% Decrease
(2.87%)
$18,38 l ,085,096
$23,960,663
At Discount Rate
(3.87%)
$15,666,618,141
$20,422,220
1 % Increase
(4.87%)
$13,498,373,388
$17,595,805
Sensitivity of the State's Net OPES Liability to Changes in the Healthcare Cost Trend Rates:
The following presents the net OPEB liability as of June 30, 2018, calculated using the healthcare trend rate as
disclosed above as well as what the net OPEB liability would be if it was calculated using a healthcare trend rate
that is I-percentage point lower or ! -percentage point higher than the current rate:
Total Net OPEB Liability
Borough's Share
1% Decrease
$13,068,471,450
$17,035,406
Healthcare Cost
Trent Rate
$15,666,618,141
$20,422,220
l % Increase
$19,029,006,023
$24,805,261
60
NOTES TO FINANCIAL STATEMENTS
Note 8:POST RETIREMENT HEALTH BENEFITS (CONT'D)
At June 30, 2018, the Borough reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following sources:
Difference between expected and actual experience
Changes of assumptions
Changes in proportion
Net difference between projected and actual
investment earnings on OPEB plan investments
Total
Deferred Outflows
Of Resources
1,661,599
10 792
$1,672,391
Deferred Inflows
Of Resources
$4,146,439
5,180,364
545 088
$'.),8] l 891
Collective Deferred Outflows of Resources and Deferred !riflows of Resources - Amounts reported as deferred
outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as
follows:
Year ending
2019
2020
2021
2022
2023
Thereafter
Total
Amount
$(1,221,338)
(1,221,338)
(1,221,338)
(1,222,405)
(1,224,303)
(2,088,778)
$/8, 199 500)
61
Note 8:POST RETIREMENT HEAL TH BENEFITS (CONT'D)
Changes in the Total and Net Plan OPEB Liability:
Total OPEB Liability - Beginning
(Based on 6/30 Measurement Date)
Changes for the year:
Service cost
Interest cost
Difference between expected and actual experience
Changes in assumptions
Contributions: Member
Gross benefit payments
Net changes
Total OPEB Liability - Ending
(Based on 6/30 Measurement Date)
Plan Fiduciary Net Position
Contributions: Employer
Note 9:
Contributions: Non-Employer contributing entities
Contributions: Member
Net investment income
Gross benefit payments
Administrative expenses
Other
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position (Beginning)
Plan Fiduciary Net Position (Ending)
Net OPEB Liability (Ending)
Plan Fiduciary Net Position as% ofOPEB Liability
Covered Employee Payroll
Net OPEB Liability as a Percentage of Payroll
ACCRUED SICK AND VACATION BENEFITS
NOTES TO FINANCIAL STATEMENTS
2018
2017
$
20,629,044,656
$
21,867,849,603
896,235,148
1,064,525,862
764,082,232
648,423,508
(3,626,384,047)
(2,314,240,675)
(2,587,850,974)
53,987,166
53,585,505
(421,621,253)
(417,488,848)
(4,647,941,429)
(l,238,804,947)
$
15,981,103,227
$
20,629,044,656
$
42 l, 194,662
$
381,813,324
53,548,285
53,064,3 l l
53,987,166
53,585,505
2,320,422
791,049
(421,621,253)
(417,488,848)
(8,200,l 13)
(8,894,576)
$
101,229,169
$
62,870,765
$
213,255,917
150,385,152
$
314,485,086
$
213,255,917
$
15,666,618,]4]
$
20,415,788,739
2.0%
l.0%
$
4,646,915,753
$
4,336,016,376
337%
471%
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
$102,818.57 and $134,684.86 for 2018 and 2017. 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 $384,765.08 and $322,616.96 for
2018 and 2017.
Note JO:
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 oflnsurance 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.
62
NOTES TO FINANCIAL STATEMENTS
Note 10:
RISK MANAGEMENT (CONT'D)
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. This represents the latest available information.
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 2018 and the previous two years
Borough
Fiscal
Contributions
Employee
Amount
Ending
Year
And Interest
Contributions
Reimbursed
Balance
2018
$2,771.43
$0.00
$9,961.37
$200,793.89
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
Note I I:
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, 2018, 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:
INTERFUNDS
The following interfund balances remained on the balance sheet date at December 31, 2018:
Interfunds
Interfunds
Fund
Receivable
Payable
Current Fund
$396,399.21
$144,565.09
Grant Fund
23,775.00
49,999.06
Assessment Trust Fund
21,894.37
Animal Control Fund
34,592.82
Trust Fund
667,352.10
General Capital Fund
7,164.08
786,987.42
Swimming Pool Util. Oper Fund
160,774.90
56,651.63
Swimming Pool Util. Cap Fund
160 774.90
Total
$1 255 465.22
$1 255 465.22
63
NOTES TO FINANCIAL STATEMENTS
Note 13:
INTERFUNDS (CONT'D)
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 (I) interfund goods and services are provided or reimbursable expenditures occur, (2)
transactions are recorded in the accounting system, and (3) payments between funds are made.
Note 14:
LONG TERM TAX EXEMPTIONS
The Borough provides for Jong-term tax exemptions, as authorized and permitted by New Jersey State Statutes.
N.J.S.A. 40A:20-J 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 2018 were
$423,000.00 and taxes in 2018 that otherwise would have been due on these Jong-term tax exemptions amounted
to $456,823.48, based upon the assessed valuations of the Jong-term tax exemptions properties.
Note 15:
SUBSEQUENT EVENTS
Subsequent to the year ending December 31, 2018 and as of the date of the audit report, the following projects
have been authorized:
Appropriating $620,000 and authorizing $62,800 bonds and notes for Various Road Improvements.
Appropriating $1,135,000 and authorizing $104,440 bonds and notes for the Bound Brook Streetscape project.
The Borough issued Bond Anticipation Notes dated June 26, 2019 with a maturity date of June 25, 2020. The
BAN's were issued for $5,282,106 with a net interest cost of 1.59849% and a coupon rate of 2.25%.
64
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
PART II
SUPPLEMENTARY SCHEDULES
65
CURRENTFUND
66
CURRENTFUND
SCHEDULE OF CASH
Ref.
Cash Balance December 31, 201 7 ........................ ..
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 .................. .
Sewer Rents Collections ................................ .
lnterfunds ................................................ ..
Various Accounts Payable & Reserves .............. ..
Petty Cash Returned ..................................... .
A-8
A-9
A-10
A-14
A-5
242,162.84
124,513.70
43,123,232.28
3,248,074.91
1,144,529.54
130,603.91
13,961.00
300.00
$
Exhibit A-4
6,934,451.67
Total Cash Receipts .................................................................................... .
48,027,378.18
Decreased by Disbursements
Budget Appropriations .................................. .
A-3
(18,085,843.35)
Interfunds ................................................. .
A-10
(887,097.92)
Appropriation Reserves
A-11
(439,910.45)
Taxes Payable ............................................ .
A-13
(30,681,789.44)
Various A/P, & Reserves ............................... .
A-14
(83,373.26)
Petty Cash Advanced ................................... ..
A-5
(300.00)
Total Cash Disbursements..............................................................................
(50,178,314.42)
Cash Balance December 31, 2018 ......................... .
A
$ ====4,=78=3=,5=1 =5 ·=43=
67
Change Fund
Collector - Treasurer
Municipal Court
Construction
Borough Clerk
Swim Pool Utility
Petty Cash Funds:
Borough Clerk
Police
Recreation
CURRE'IT FUND
SCHEDULE OF PETTY CASH AND CHANGE FUNDS
Balance
December 31,
2017
Advanced
Returned
$
$
200.00
$
150.00
50.00
50.00
50.00
100.00
100.00
100.00
$
100.00
100.00
100.00
500.00
$ 300.00
$ 300.00
A
A-4
A-4
Balance
December 3 1,
2018
$
200.00
150.00
50.00
50.00
50.00
$
500.00
A
Exhibit A-5
68
Exhibit - A-6
SCHEDULE OF DUE FROM STA TE OF NEW JERSEY -
FOR ALLOWABLE DEDUCTIONS PER CHAPTER 129, P.L. 1976
CURRENTFUND
REF.
Balance - December 31, 2017
A
$
43,661.05
Increased by:
Allowable Deductions per
Tax Billings
A-6
124,250.00
201 8 Sr. Citizens and Vet.
Ded. Allowed by Collector
A-6
750.00
125,000.00
168,661.05
Decreased by:
Collected
A-4
124,513.70
2018 Sr. Citizens and Vet.
Ded. Disallowed by Collector
A-6
3,891.10
128,404.80
Balance - December 31, 2018
A
$
40,256.25
Analysis of Sr. Citizens & Veterans
Deductions Allowed - 2018 Taxes
Per Tax Billings
A-6
$
124,250.00
Allowed (Disallowed) by Tax Collector (Net)
A-6
(3,141.10)
A-7
$
121,108.90
69
Exhibit A-7
CURRENT FUND
SCHEDULE OF PROPERTY TAXES RECE!V ABLE AND LEVY ANALYSIS
Property
CY 19
CY 18
CY 17
Tax
Tax
Acquired
Total
Prepaid
Current
Delinquent
Arrears
Overpayments
Liens
for Taxes
Ref.
Balance 12/31/2017.. .
$
1,377,302.67
$ (905,467.87)
$
$
498,735.48
$
250.00
$
$ 360,646.06
$
1,423,139.00
Billings/ Levy:
Original Levy ... .... ......... A- 7
44,002,393.47
44,002,393.47
Added & Omitted ..
A-7
111,968.64
111,968.64
Added by Assessor ..
. A-7
TTL Interest & Costs ..
A-9
Canceled Taxes ..
(52,551.18)
(52,551.18)
Transfers
Tax Lien ...
Revenue
Sr.Citizens & Vets ..
Original Levy ..
A-6
(124,250.00)
(124,250.00)
Allowed/Disallowed ...
A-6
3,610.60
3,141.10
469.50
Cash Receipts ..
A-4
( 43, 123,232.28)
(207,074.40)
(42,393,597.90)
(490,906.74)
(31,653.24)
Overpayments Applied .. . . ... A-12
Transferred to Overpayments .. A-12
Prepaid Applied ..
905,467.87
(905,467.87)
Balance 12/31/2018 ....
$
2,195,241.92
$ (207,074.40)
$
641,636.26
$
8,298.24
$
250.00
$
(31,653.24)
$ 360,646.06
$
1,423,139.00
Ref.
A
A, A-7
A
A
A
A
A
Analysis of2018\ Proge!_1y Tax Leyy:
Current
Tax Yield..:.
Tax Levy:
K~t
Taxes Realized:
Ref.
Genera! Purpose Tax
$
44,002,393.47
Local School District Tax
A-15
$25,209,565.00
Sr. Citizens & Vets
A-6,A-7
$
121,108.90
Added Taxes
111,968.64
County Tax
A-13
5,458,558.34
Cash Receipts
A-7
42,393,597.90
County Open Space
A-13
446,154.10
Prepayments
A- 7
905,467.87
$
44,114,362.11
Due County - Added & Omitted
A-13
15,067.38
Subtotal
A-1
43,420,174.67
Res. For Uncoil. Tax
A-3
875,000.00
31,129,344.82
44,295,174.67
Local Tax for Municipal Purposes
A-2
12,393,324.32
A!located to School
Minimum Library Tax
A-2
494,095.00
and County
A-13, A-IS
(31,129,344.82)
Add: Additional Tax Levied
97,597.97
A-2
$ 13,165,829.85
$44,114,362.ll
70
Exhibit A-8
CURRENT FUND
SCHEDULE OF NONBUDGET REVENUES & VARIOUS ACCOUNTS RECEIVABLES
Accrued/
Cash
Dec.31,2017
Adjustments
Receipts
Dec. 31, 2018
Revenue Accounts Receivable:
Ref.
Fines and Costs - Municipal Court
$
22,214.39
22,335.90
$
(22,214.39) $
22,335.90
A-2
22,214.39
22,335.90
(22,214.39)
22,335.90
Non - Budget Revenue:
Abandoned Property
80,000.00
(80,000.00)
Containers
2,752.00
(2,752.00)
Duplicate Rec & Tax Bills
760.00
(760.00)
Easements
1,500.00
(1,500.00)
Health Benefits Contrib. - Library
36,044.36
(36,044.36)
Homestead Rebate
Landlord Registration
20,750.00
(20,750.00)
Police Outside Service Admin
45,400.00
(45,400.00)
Property Maintenance Admin Fee
7,329.23
(7,329.23)
Property Tax List
730.00
(730.00)
Senior Citizens & Veterans Deduct. - Admin. Fee
2,490.27
(2,490.27)
Miscellaneous
44,406.98
(44,406.98)
A-1, A-2,A-4
242,162.84
(242,162.84)
Tota!
$
22,214.39
$
264,498.74
$
(264,377.23) $
22,335.90
Ref.
A
A-4
A
Ref.
Anal)'.sis of Miscellaneous Revenues:
Account Receivable Collections
A-4
$
22,214.39
Current Year Collections
A-4
3,225,860.52
Subtotal
A-4
3,248,074.91
Sewer Collections
A-9
1,144,529.54
Interest on Investments
A-10
1,938.63
Grants Realized - Grant Fund
A-10
132,639.63
Reserve for Sale of Municipal Assets - Cell Tower
A-14
200,000.00
A-2
$
4,727,182.71
71
Exhibit - A-9
SCHEDULE OF SEWER FLOW CHARGES RECEIVABLE
CURRENTFlND
REF.
Balance - December 31, 2017
A
$
186,778.64
Increased by:
Sewer Flow Charges:
User Charges
Reserve
1,054,836.91
1,241,615.55
Decreased by:
Collected - Current Year
A-4, A-8
995,813.32
Collected - Prior Year (Net)
A-4, A-8
148,716.22
Canceled
Reserve
38,223.27
1,182,752.81
Balance - December 31, 2018
A
$
58,862.74
Collection Analysis:
Budget Revenues
A-9
$
995,813.32
Revenue Accounts Receivable
A-9
148,716.22
A-4, A-8
$ 1,144,529.54
72
ExhibitA-10
CURRENT FUND
ST A TEMENT OF INTERFUNDS RECEIVABLE/ PAY ABLE
Cash
Cash
Budget
Budget
Dec. 31, 2017
Receipts
Disbursements
Revenues
Appropriations
Adjustments
Dec. 31, 2018
Interfunds
Animal Control Fund ............................. $
(27,656.66) $
$
$
$
$ (6,936.16) $
(34,592.82)
Trust Assessment Fund ..........................
(14,382.47)
(347.82)
(14,730.29)
Trust - Other Fund ................................
421,140.26
(276,575.17)
144,565.09
Community Development Block Grant .....
(8,200.00)
8,200.00
General Capital Fund .....................
(240,425.41)
(240,425.41)
Swimming Pool Utility Operating Fund .......
(76.18)
1,599.86
(56,584.50)
(1,590.81)
(56,651.63)
Grant Fund .........................................
377,893.89
120,804.05
(553,938.25)
(132,639.63)
137,880.88
(49,999.06)
Total. .................................................... $
508,293.43
$ 130,603.91
$
(887,097.92) $
(134,578.26) $
137,880.88 $ (6,936.16) $
(251,834.12)
Ref.
A
A-4
A-4
A-1,A-8
A-1,A-3
A-I
A
Receivables
$ (290,740.72)
$
(396,399.21)
Payables
799,034.15
144,565.09
$
508,293.43
$
(251,834.12)
73
Exhibit A-1 l
Page 1 of6
SCHEDULE OF 2017 APPROPRIA TJON RESERVES
BALANCE
BALANCE AFTER
PAID OR
BALANCE
DEC 31 2017
ENCUMBRANCES
MODIFICATION
CHARGED
LAPSED
Operations Within "CAPS"
General Administration
Salaries and Wages
$
1,309.43
$
$
1,309.43
$
$
1,309.43
Other Expenses
324.02
1,862.72
2,186.74
1,983.58
203.16
Mayor and Council
Salaries and Wages
0.24
0.24
0.24
Other Expenses
1,517.76
495.52
2,013.28
515.86
1,497.42
Municipal Clerk
Salaries and Wages
66.74
66.74
66.74
Other Expenses
752.72
2,639.66
5,892.38
4,697.23
1,195.15
Postage for All Departments
Other Expenses
5,810.77
566.99
6,377.76
20380
6,173.96
Printing and Advertising
Other Expenses
l,112.53
1,112.53
383.63
728.90
Financial Administration
Salaries and Wages
613.34
613.34
613.34
Other Expenses
2,378.60
140.00
2,518.60
279.70
2,238.90
Annual Audit
Other Expenses
45,000.00
45,000.00
37,530.00
7,470.00
Revenue Administration
Salaries and Wages
205.00
205.00
205.00
Other Expenses
l,637.87
488.58
2,126.45
427.84
1,698.61
Tax Assessment Administration
Salaries and Wages
0.0!
0.01
0.01
Other Expenses
24.43
24.43
24.43
Legal Services
Other Expenses
6,192.47
7,971.00
21,163.47
17,462.25
3,701.22
Engineering Services
Other Expenses
1,242.97
45,140.74
51,383.71
51,383.71
Computer Data Services
Salaries and Wages
94.06
94.06
94.06
Other Expenses
2,749.17
36,481.39
39,230.56
36,873.16
2,357.40
74
Exhibit A- 11
Page 2 of6
SCHEDULE OF 20 l 7 APPROPRJATION RESER YES
BALANCE
BALANCE AFTER
PAIDOR
BALANCE
DEC 31 2017
ENCUMBRANCES
MODIFICATION
CHARGED
LAPS.@
LAND USE ADM!Nl:,JRATION·
Environmental Legal & Engineering Services and Costs
Other Expenses
$
8,901.00
$
195.00
$
9,096.00
$
2,569.08
$
6,526.92
Planning Board
Salaries and Wages
1,600.00
1,600.00
1,600.00
Other Expenses
14,167.75
15,041.!0
29,208 85
21,101.IO
8.l 07 75
Zoning Board of Adjustment
Salaries and Wages
2,000 00
2,000.00
2,000.00
Other Expenses
539.27
1,135.00
1,674.27
1,135.00
539.27
Code Enforcement
Salaries and Wages
6,400.43
6,400.43
6,400.43
Other Expenses
6,174.05
161.47
6,335 52
372.55
5,962.97
INSURANCE
Temporary Disability Insurance
l,230.06
1,230.06
1,230.06
Long-Tenn Disability Insurance
1,207.19
1,207 19
1,207.19
Liability Insurance
2,515.53
2,515.53
2,515.53
Employees Group Insurance
184.87
184.87
184.87
PUBLIC SAFETY
Police Department
Salaries and Wages
189,83258
175,332.58
8,637.53
166,695 05
Other Expenses
9,964.25
12,241.61
22,205.86
11,263.88
10,941.98
Juvenile Conference Committee
Salaries and Wages
26.02
26.02
26.02
Other Expenses
250.00
250.00
250.00
Office ofEmergency Management
Other Expenses
641.01
4,430.00
5,071.01
4,349.91
72!.IO
Fire Department
Other Expenses
20,360.18
13,849.74
34,209.92
14,740.52
19,469.40
Hazardous Waste Facilities Tax-
Fire Services/ First Aid Organization
Other Expenses
2,000.00
2,000.00
2,000 00
Fire Hydrant Fees
I 8,481.53
18,481.53
17,410.77
1,070.76
Municipal Court
Salaries and Wages
2,735.62
112.50
2,848.12
112.50
2,735.62
Other Expenses
4,131.60
200.90
4,332.50
754.63
3,577_87
75
PUBLIC WORKS
Road Repairs and Maintenance
Other Expenses
$
Shade Tree Commission
Other Expenses
Solid Waste Collection
Salaries and Wages
Garbage and Trash Removal
Salaries and Wages
Other Expenses
Community Services Act
(Condominium Community Costs)
Other Expenses
Building and Grounds
Other Expenses
Rental of Rescue Squad Building
Other Expenses
HEALTH AND HJJMAN SERVICES
Public Health Services (Board of Health)
Salaries and Wages
Other Expenses
Animal Control
Other Expenses
Senior Nutrition -Program Costs
Salaries and Wages
Title III Senior Medical Transportation - Program Costs
Salaries and Wages
Title III Infonuation & Assistance - Program Costs
Salaries and Wages
SCHEDULE OF 2017 APPROPR!A TION RESERVES
BALANCE
J)EUJ..2017
770.08
3,523.34
1,637.17
553.46
55,500 00
868.87
1,469.50
1,050.65
13,500.00
3,757.64
8,724 64
3,157.38
$
ENCUMBRANCES
20,915.99 $
2,410.00
459.94
15,332.43
600.00
56.50
BALANCE AFTER
MOD!FICATION
23,686.07
2,410.00
3,523.34
1,637.17
3,013.40
55,500.00
2 l,201.30
600.00
1,469.50
1,107.15
13,500.00
3,757.64
8,724 64
3,157.38
$
PAID OR
CHARGED
20,29229
2,410.00
2,519.17
55,495.70
15,172.43
600.00
98.50
7,300.00
$
BALANCE
LAPSEJ2
3,393.78
3,523.34
1,637.17
494.23
4.30
6,028.87
1,469.50
1,008.65
6,200.00
3,757.64
8,724.64
3,157.38
Exhibit A-11
Page 3 of6
76
PARKS AND RECREATION
Recreation Services and Programs
Salaries and Wages
$
Other Expenses
Parks and Playgrounds
Salaries and Wages
Other Expenses
Celebration of Public Events
Other Expenses
Senior Citizens Bus Transportation
Other Expenses
Senior Citizen Coordinator
Salaries and Wages
Other Expenses
OTHER COMMON OPERA TING FUNCTIONS-
UNCLASSIFIED
Housing and Community Advisory Board
Other Expenses
Maintenance of Tax Map
Other Expenses
Beautification Committee
Other Expenses
Multi-Family Solid Waste Col!ection
Other Expenses
SCHEDULE OF 2017 APPROPRJATION RESERVES
BALANCE
DEC JI 2017
13,238.64
12,!03.ll
5,620 60
7,559.31
8,983.27
2,895.64
41.96
82559
100.00
l,150.00
159.50
1,162.40
$
ENCUMBRANCES
$
3,949.41
8,442.46
53909
95.00
871.70
45800
BALANCE AFTER
MODIFICATION
8,238.64
16,052.54
620.60
16,001.77
9,52236
2,290.64
41.96
2,397.29
100.00
l,150.00
617.50
1,162.40
$
PAID OR
CHARGE◊
4,068 71
4,961.41
2,539 09
95.00
1,831.25
45800
$
BALANCE
LAPSED
8,238 64
l l,983.83
620.60
11,040.36
6,983.27
2,195.64
41.96
56604
!0000
l,15000
159.50
l,162.40
Exhibit A-11
Page4 of 6
77
Exhibit A~J 1
Page 5 of6
SCHED_ULE OF 2017 APPROPRIATION RESERVES
BALANCE
BALANCE AFTER
PA!DOR
BALANCE
DEC. 31 20!7
ENCUMBRANCES
MODIFICATION
~l:LARGED
LAPSED
UTILITY EXPENSES AND BULK PURCHAS1"S
Electricity
$
32,866.77
$
$
32,866.77
$
24,700.27
$
8,16650
Street Lighting
26,931.68
26,931.68
13,604 62
13,327.06
Telephone (Excluding Equipment Acqu1s.)
18,897.42
18,897.42
4,867.37
14,030 05
Water
4,926.78
4,926.78
2,980.73
1,946.05
Gas (Natural or Propane)
952.95
952.95
952.95
Gasoline
960.00
96000
960.00
Sewer Processing and Disposal
Salaries and Wages
5,4!0.20
410.20
4 I0.20
Other Expenses
100.26
560.54
1,660.80
1,25554
405.26
LANDF!LU SOLID WASTE DISPOSAL COSTS:
Landfill Fees:
Other Expenses
!5,4!0.67
20,04158
40,452.25
40,290.39
161.86
CODE ENFORCEMENT AND ADMINlSTRATION:
Construction Inspector, Plumbing Inspector
and Code Enforcer
Salaries and Wages
4,947.44
4,947.44
4,947.44
Other Expenses
1,033.81
1,049.85
2,083.66
1,008.85
1,074.81
Total Operations Within "CAPS"
625,165 82
218,936.41
844,102.23
441,690.50
402,411.73
Contingent
2,980.46
2,980.46
1,901.55
1,078.91
Total Operations Including Contingent Within "CAPS"
628,146.28
218,936.41
847,082.69
443,592.05
403,490.64
78
Exhibit A-11
Page 6 of6
SCHEDULE Of 2017 APPROPRJA T!ON RESERVES
BALANCE
BALANCE AFTER
PAID OR
BALANCE
DEC31 2017
ENCUMBRANCES
MODIFICATION
CHARGED
!,;\l'SED
STATUTORY EXPENDITURES
Contribution to:
Social Security System (OAS.I.)
$
1,394 63
$
$
1,394.63
$
$
1,394.63
Defined Contribution Retirement Program
363.44
363.44
363.44
Total General Appropriations for
Municipal Purposes Within "CAPS"
629,904.35
218,936.41
848,840 76
443,592.05
405,248 71
Operations Excluded from "CAPS"
Middlesex County Utilities Authority Sewerage Treatment
0.60
0.60
0.60
Piscataway Sewerage Authority- Share of Costs;
282
2.82
2.82
Stonnwater Pollution Programs: NJDES/Stormwater Permit
Other Expense
3,000.00
3,000.00
3,000.00
Middlesex County Improvement Authority
County Curb.side Collection Program
19,596.20
19,596.20
17,769.52
1,826.68
Total Operations - Excluded from "CAPS"
22,599.62
22,599.62
17,769 52
4,830.10
Tota! General Appropriations
$
652,503.97
$
$
871,440.38
$
461,361.57
$
410,078.81
Ref
A
A
A-I
Accounts Payable
A-14
$
21,45112
Disbursed
A-4
439,910.45
$
461,361.57
79
Emergency Appropriation
SCHEDULE OF DEFERRED CHARGES
Ref.
BALANCE
DEC. 31,2017
$
$
RESULTS OF
CY 2018
$ 150,000.00
$ 150,000.00
A-3
$
$
Exhibit - A-12
BALANCE
DEC. 31,2018
150,000.00
150,000.00
A
80
CURRENT FUND
SCHEDULE OF TAXES PAYABLE
Dec. 3 I, 2017
Taxes
Levied
County - General. .................... $
$
5,458,558.34
$
County - Open Space ................
446,154.10
County - Added & Omitted .........
15,067.38
Local School District Taxes ........
24,777,077.00
Total. ................................... $
$ 30,696,856.82
$
Ref.
A-l,A-7,A-15
Cash
Disbursements
(5,458,558.34)
(446,154.10)
(24,777,077.00)
(30,681,789.44)
A-4
$
$
Exhibit A-13
Dec. 31,2018
15,067.38
15,067.38
A
81
Exhibit A-14
CURRENTFUND
SCHEDULE OF CHANGES INV ARJOUS ACCOUNTS PAY ABLES & RESERVES
Accounts Payable:
Vendor Accounts Payable ...........
$
Marriage License Filing Fees .......
State Training Fees ...................
Subtotal
Reserve for:
Codification of Ordinances ..........
FEMA/NJDEP Buyout
Master Plan ............................
Tax Appeals ...........................
Sewer Overpayment. .................
Farmers Market .......................
Sale of Assets - Cell Tower .........
Subtotal
Total. ........................................
$
Ref.
Dec.31,2017
82,108.84
(175.00)
14.00
81,947.84
6,389.15
171.76
1,161.96
30,000.00
7,530.79
215.00
1,084,609.22
1,130,077.88
1,212,025.72
A
Transfer from/(to)
Budget
$
$
(200,000.00)
(200,000.00)
$
(200,000.00)
A-2,A-8
$
$
Cash
Receipts
2,300.00
11,661.00
13,961.00
13,961.00
A-4
Cash
Disbursements
Adjustments
Dec. 31, 2018
$
21,451.12
$
103,559.96
(1,575.00)
550.00
(11,834.00)
(159.00)
(13,409.00)
21,451.12
103,950.96
6,389.15
I 71.76
1,161.96
30,000.00
7,530.79
215.00
(69,964.26)
814,644.96
(69,964.26)
860,113.62
$ (83,373.26) $
21,451.12
$
964,064.58
A-4
A- 11
A
82
Exhibit - A-15
SCHEDULE OF LOCAL DISTRJCT SCHOOL TAX - DEFERRED SCHOOL TAXES
REF.
Balance - December 31, 201 7
Deferred School Taxes
A
$
12,136,004.00
Increased by:
Levy, School Year July 1, 2018 to
June 30, 2019
A-7
25,209,565.00
37,345,569.00
Decreased by:
School Taxes Requirement -
Calendar Year Taxes Payable
A-l,A-13
24,777,077.00
Balance - December 31, 2018
A
$
12,568,492.00
Deferred School Taxes
Exhibit - A-16
SCHEDULE OF DUE FROM GENERAL CAPITAL FUND - GRANT FUND
Balance - December 3 1, 2017
A
$
23,775.00
Balance - December 31, 2018
A
$
23,775.00
83
SCHEDULE OF STATE GRANTS RECEIVABLE
GRANTFUND
2018 BUDGET
BALANCE
REVENUE
DEC. 31,2017
REALIZED
Alcohol Ed & Rehab Fund - Municipal Court
$
362.59 $
Middlesex County Open Space
1,497,227.00
NJ Div of Highway Traffic Safety- 2018 Udrive, Utext, Upay
6,600.00
Clean Communities Program
26,175.56
Community Development Block Grant
48,921.00
DMV Inspection Fines
1,581.40
Drunk Driving Enforcement Fund
347.04
Middlesex County - Info. Assis & Transp. Assist -
Older American Act of 1965
6,166.00
26,200.00
Municipal Alliance on Alcoholism and Drug Abuse
20,095.90
20,965.00
Municipal Alcohol Education/Rehabilitation
2,196.67
Total Federal and State Grants Receivable
$
1,524,198.53 $
132,639.63
Ref.
A
A-18
Exhihit - A-17
COLLECTED
BALANCE
2018
DEC. 31,2018
$
$
362.59
1,497,227.00
6,600.00
26,175.56
41,775.00
7,146.00
1,581.40
347.04
23,212.00
9,154.00
22,668.42
18,392.48
2,196.67
$
117,609.05 $
1,539,229.11
A-18
A
84
SCHEDULE OF DUE FROM/(TO) CURRENT FUND
GRANTFUND
Balance - December 31, 2017
(Due from)
Increased by:
Grants receivable collected
Grants appropriated - Current Fund budget
Unappropriated grants collected
Decreased by:
Grants revenue - Current Fund budget
Grants expended
Balance - December 31, 2018
(Due to)
REF.
A
A-17
A-19
A-20
A-17
A-19
A
$
117,609.05
137,880.88
3,195.00
132,639.63
553,938.25
Exhibit· A-18
$
377,893.89
258,684.93
636,578.82
686,577.88
$
49,999.06
85
Year 2005:
N.J. Hepatitis ttB" Grant
Subtotal
:Year 2006:
Livable Communities Grant
County of Middlesex• Victor Crowe!! Park
Sub1ota!
Year 2008:
County of Middlesex - Mountain View Park
Sub1otal
Y.1;gL20IO:
Municipal Alliance Alcohol and Drug Abuse
Subtotal
Year 2011:
N.J. Clean Communities Grant
Drunk Driving Enforcement Fund
Alcohol Education & Rehab
Body Annor Replacement Fund
Subtotal
Year 2012:
Body Armor Replacement Grant - CY
DruTTk DriviTTg Enforcement Fund
Haz-Mat Grant
Middlesex County - Mountainview Park
NJ. Alcohol Education & Rehabilitation - Municipal Court
N.J. Clean Communities Grant
Older Americans Act - Information Assist
Subtotal
~llL:fil.Ll..:.
Body Armor Replacement Grant - CY
Drunk Driving Enforcement Fund
N.J. Alcohol Education & Rehabilitation - Municipal Court
Subtotal
Yea.!1.QJ.1.;
Body Armor Replacement Grant - CY
NJ. Alcohol Education & Rehabilitation - Municipal Court
Forestry Grant Match
NJ. Clean Communities Grant
Subtotal
SCHEDULE OF RESERVE FOR STA TE GRANTS - APPROPRIATED
QRANTFUND
BALANCE
ENCUMBERED
DEC. 31 20!?,
DEC. 3120!7
2,549.00 $
2,549.00
24.43
200,753.66
200,778.09
2,732.27
6.286.48
2,732.27
6,286.48
47.40
47.40
1,437.78
825.47
18,736.70
2.95
2,385.07
1,005.68
23,565.23
828.42
399.98
726.94
199.20
136.44
119,386.51
161.80
11,284.18
167.44
132,263.29
199.20
1,686.68
4,699.42
53.96
6,440.06
1.011.08
52.77
875.00
1,726.90
3,665.75
TRANSFERRED FROM
2018 BUDGET
BY BUDGET
$
PAID OR
~HARGED
2,128.00
2,128.00
5,273.00
5,273.00
1,843.90
11,743.43
1,000.00
1,005.68
15,593.01
399.98
589.95
989.93
1,686.68
1,686.68
1,01 l.08
1,011.08
$
ENCUMBERED
BALANCE
DEC. 31 201.~
DEC. 3 ! 2QJll.
$
2,549.00
2,549.00
24.43
198,625.66
!98,650.09
3,745.75
3,745.75
47.40
47.40
419.35
22.90
6,973.32
1,385.07
22.90
8,777.74
926.14
136.44
119,386.5]
161.80
!0,694.23
!67.44
131,472.56
4,699.42
53.96
4,753.38
52.77
875.00
1,726.90
2,654.67
Exhbit A-19
Page I of2
86
Exhbit A-19
SCHEDULE OF RESERVE FOR STA TE GRANTS - APPROPRIATED
Page 2 of2
GRANT FUND
TRANSFERRED FROM
BALANCE
ENCUMBERED
2018 BUDGET
PAID OR
ENCUMBERED
BALANCE
DEC. 31 2017_
DEC. 31 2017
BY\i@GET
CHAl,\...GJ~I2
DEC. 31 2018
QI;;~. 31 20!8
Year 2015:
Body Armor Replacement Grant - CY
2,946.00
838.33
2,107.67
Municipal Alliance on Alcoholism and Drug Abuse
575.26
575-26
Subtotal
3,521.26
838.33
2,682.93
Year 2_Q_t6:
Alcohol Education & Rehabilitation
362.59
362.59
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
271.20
271.20
DWI - Municipal Court
58.93
58.93
Body Armor Replacement Grant - CY
5,518.56
5,518.56
Middlesex County Open Space
931,987.00
413,861.96
457,914.42
887,934.54
Subtotal
998,958.47
413,861.96
457,914.42
887,934.54
66,971.47
Year 2QU:
Body Armor Replacement Grant - CY
2,990.70
2,990.70
Drunk Driving Enforcement Fund
3,821.85
3,821.85
Clean Communities Grant
27,358.42
73,790.00
3,568,42
OMV Inspection Fines
2,635.00
2,635.00
Municipal A!!iance on Alcohol & Drug Abuse
41,930.00
41,930.00
NJ. Alcohol Education & Rehabilitation - Municipal Court
64.34
64.34
Older Americans Act - Information Assist
20,950.00
20,950.00
Subtotal
99,750.31
23,790.00
75,960.3 l
Year2.Q.Ut
Clean Communities Grant
26,175.56
26,175.56
CDBG
48,921.00
48,921.00
OMV Inspection Fines
1,581.40
1,581.40
Municipal Al!iance on Alcohol & Drug Abuse
20,965.00
7,672.55
1,125.00
12,167.45
Municipal Alliance on Alcohol & Drug Abuse - Match
5,241.25
5,241.25
N.J. Alcohol Education & Rehabilitation - Municipal Court
2,196.67
2,196.67
NJ. Div of Highway Traffic Safety- 2018 Udrive, Utex.t, Upay
6,600.00
6,600.00
Older Americans Act - Information Assist
26,200.00
25,200.00
247.15
752.85
Sub1ota!
137,880.88
44,713.80
1,372.!5
91,794.93
Total Federal and State Grants
$
1,474,271.13
$
421,176.06 $
137,880.88 $
553,938.25 $
889,329.59 $
590,060.23
Ref.
A
A
A-!8
A-18
A
A
87
SCHEDULE OF RESERVE FOR STATE GRANTS· UNAPPROPRIATED
Body Armor Replacement Grant
Clean Communities Program
Drunk Driving Enforcement Fund
DMV Inspection Fines
Ref.
GRANT FUND
BALANCE
DEC. 3!,2017
$
5,367.83
23,307.90
1,744.50
$
30,420.23
A
INCREASED
BY GRANTS
BALANCE
RECEIVED
DEC. 31,2018
$
$
5,367.83
23,307.90
1,744.50
3,195.00
3,195.00
$
3,195.00
$
33,615.23
A-18
A
Exhibit· A-20
88
TRUST FUND
89
ANALYSIS OF TRUST ASSESSMENT CASH AND INVESTMENTS
Fund Balance
Assessments Receivable
Due to Current Fund
Due to General Capital Fund
( ) Denotes Deficit or Deduction
ORD
NO.
1106
IMPROVEMENT
DESCRIPTION
Curbs and Gutters
RECEIPTS
BALANCE
ASSESSMENTS
DEC. 31, 2017
AND LIENS
$
5,565.77 $
(1,470.00)
14,382.47
347.82
7,164.08
$
25,642.32 $
347.82
Ref.
B
B-5
SCHEDULE OF ASSESSMENT LIENS
TRUST ASSESSMENT FUND
Ref.
BALANCE
DEC. 31, 2017
$
1,470.00
B
BALANCE
DEC. 31, 2018
$
1,470.00
B
$
$
BALANCE
DEC. 31, 2018
5,565.77
(1,470.00)
14,730.29
7,164.08
25,990.14
B
BALANCE
PLEDGED TO
GENERAL CAPITAL
$
1,470.00
Exhibit - B- 2
Exhibit - B-3
90
SCHEDULE OF DUE TO GENERAL CAPITAL FUND
ASSESSMENT TRUST FUND
REF.
Balance - December 31, 20 I 7
B
Balance - December 31, 2018
B
SCHEDULE OF DUE TO CURRENT FUND
ASSESSMENT TRUST FUND
REF.
Balance - December 31, 20 I 7
B
Increased by
Cash Receipts
B-2
Balance- December 31, 2018
B
Exhibit - B-4
$
7,164.08
$
7,164.08
======
Exhibit - B-5
$
14,382.47
347.82
$
14,730.29
91
Assessment Trust:
Assessments Liens Receivable ..
Due to General Capital Fund ..
Due to Current Fund ..
Fund Balance
Total
Animal Control:
Due Current Fund ..
Due To NJ - State License Fees ..
Animal Control Reserves ..
Tota!
Payroll:
Deductions Payable (Net Change) ...
Total
Developers' Escrow:
Developer's Escrow Funds ...
Developer's Escrows - Water & Soi! ...
Total
Public Assistance:
Reserve for Public Assistance.
Total
TRUST FUNDS
SCHEDULE OF CASH AND RESERVE ACTIVITY
Balance
Dec.31.2017
$
(1,470.00)
7,164.08
14,382.47
5,565.77
25,642.32
27,656.66
4.20
16,455.20
44,116.06
127,908.39
127,908.39
476,256.21
20,062.00
496,3 I 8.21
9,837.96
9,837.96
............... Cash ....
Receipts
Disbursements
347.82
347.82
852.00
(855.00)
6,348.18
(956.82)
7,200.18
(1,811.82)
55,8 I 7.56
55,817.56
347,514.41
(198,173.86)
347,514.41
(198,173.86)
132.51
(129.13)
132.51
(129.13)
Adjustments
$
6,936.16
(6,936. I 6)
Balance
Dec.31.2018
Exhibit B-6
Page 1 of4
(1,470.00)
7,164.08
14,730.29
5,565.77
25,990.14
34,592.82
1.20
14,910.40
49,504.42
183,725.95
I 83,725.95
625,596.76
20,062.00
645,658.76
9,841.34
9,841.34
92
Exhibit B-6
Page 2 of 4
TRUST FUNDS
SCHEDULE OF CASH AND RESERVE ACTIVITY
Balance
................. Cash ....
Balance
Dec.31.2017
Receipts
Disbursements
Adjustments
Dec.31.2018
Community Development Blk Grant:
Due from Midd. Cty. CDBG ..
(67,448.91)
41,775.00
(48,921.00)
(74,594.91)
Due to Current Fund ..
8,200.00
(8,200.00)
Community Development Blk Grant:
Year2012/2013 Reserves
Senior Center Improvements
1,877.76
1,877.76
Manhole Retrofit
139.00
139.00
Community Development B!k Grant:
Year 2013/2014 Reserves
Lincoln Fire House Doors ..
800.00
800.00
Passive Improvements ..
365.15
365.15
Community Development Blk Grant:
Year 20 I 6/201 7 Reserves
Senior Center Improvements
7,146.00
7,146.00
Community Development Blk Grant:
Year 2017/2018 Reserves
Senior Center Improvements
15,346.00
15,346.00
Senior Nutrition Project
7,500.00
(7,500.00)
Senior Van Driver
7,500.00
(7,500.00)
Code Enforcement
7,500.00
(7,500.00)
Senior Center Coordinator
11,075.00
(11,075.00)
Community Development Blk Grant
Year 2018/2019 Reserves
Senior Center Improvements
15,346.00
15,346.00
Senior Nutrition Project
7,500.00
7,500.00
Senior Van Driver
7,500.00
7,500.00
Code Enforcement
7,500.00
7,500.00
Senior Center Coordinator
11,075.00
II ,075.00
Total
(0.00)
41,775.00
(41,775.00)
(0.00)
93
Exhibit B-6
Page 3 of4
TRUST FUNDS
SCHEDULE OF CASH AND RESERVE ACTIVITY
Balance
..... Cash ..
Balance
Dec.31.2017
Receipts
Disbursements
Adjustments
Dee. 31.20 18
Other Trust Funds:
Due from Current Fund .
$
( 421, 140,26) $
276,575.17
$
(144,565.09)
Due from General Capital Fund ..
(522,787.0])
(522,787.01)
Reserve for Unemployment Insurance ....
207,983.83
2,771.43
(9,961.37)
200,793.89
Miscellaneous Reserves:
Affordable Housing
100,000.00
100,000,00
Commodity Resale Program -
Gasoline -Borough of Dunellen ..
147,501.5]
77,573.02
(125,132.58)
99,941.95
Developers Escrow Unclaimed Funds
12,474.42
3,337.58
15,812.00
Development
21,751.4]
54,244,65
(23,762.82)
52,233.24
Federal Asset Forfeitures ..
4,708.66
467.86
(403,98)
4,772.54
Municipal Law Enforcement Trust..
8,983.80
2,920.94
403,98
12,308.72
Older Americans Act..
6,930.64
7,260.00
(8,886.60)
5,304,04
Outside Police Services ..
28,198.23
277,328.54
(297,088.54)
8,438.23
Police Found Money ..
616,92
3,159.57
(612.00)
3,164.49
Parking Offense Adjudication Act..
3,556.50
126.00
3,682.50
Police Application Fees ..
318,85
318,85
Public Defender Fees ..
7,966.50
5,406.00
(12,450.00)
922,50
Police Communities Education ...
2,467.40
1,400.00
(287,98)
3,579.42
Premium on Tax Sale
278,500.00
13,500.00
(183,000.00)
109,000.00
Police Memorial Fund ..
50.00
50.00
Police Donations ...
5,258.21
2,931.88
(1,931.88)
6,258.21
Police - DARE ..
1,635.00
1,635.00
Police 911 Fund ..
19,84
19.84
Recreation Fund ..
81,871.90
83,213.85
(69,361.86)
95,723.89
Recycling Trust..
30,211.60
11,307.20
(31,191.99)
10,326.81
Restitution ..
4,135.56
4,135.56
Sanitary Sewer
880,00
880.00
Senior Assisted Transportation ...
5,071.94
6,014,08
(1,195.00)
9,891.02
Special Inspection ..
3,672.28
3,672.28
Street Opening Deposits ....
121,116.05
18,000.00
(10,875.24)
128,240.8]
Third Party Outside Lien Redemption
90,266.29
295,228.08
(287,891.93)
97,602.44
Tree Replacement Fund ..
9,825.50
600,00
(9,240.00)
1,185.50
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
157,498.23
1,243,365.85
(1,072,869.79)
327,994.29
Total
$
861,32L17
$
1,696,153.33
$
(1,314,759.60) $
$
1,242,714.90
Ref.
B
B
94
TRUST FUNDS
SCHEDULE OF CASH AND RESERVE ACTIVITY
License Fees Collected;
Note; R.S. 4;19.11
2016
2017
Balance
Dec. 31. 2017
Amount
$
7,994.00
6,916.40
$
14,910.40
... 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."
.... Cash ....
Receipts
Disbursements
Adjustments
Balance
Dec.31.2018
Exhibit 8-6
Page 4 of 4
95
GENERAL CAPITAL FUND
96
SCHEDULE OF GENERAL CAPITAL FUND
CASH AND INVESTMENTS - TREASURER
REF.
Balance - December 31, 2017
C
$
Increased by Receipts:
Grants, Loans and Other Receivables
C-4
1,320,817.35
Various Reserves
C-13
20,672.00
Capital Improvement Fund
C-14
65,000.00
Bond Anticipation Notes
C-15
3,400,000.00
Decreased by Disbursements:
Improvement Authorizations
C-8
2,543,892.31
Various Reserves
C-13
749,949.70
Balance - December 31, 2018
C,C-3
$
Exhibit - C-2
4,806,489.35
4,806,489.35
3,293,842.01
1,512,647.34
97
Exhibit - C- 3
GENERAL CAPITAL FUND
ANALYSIS OF CASH AND INVESTMENTS
BALANCE
BALANCE
DECEMBER
DECEMBER
31,2017
31,2018
Grants Receivable
$ (1,101,589.42)
$
(672,668.53)
Due from Assessment Trust
(7,164.08)
(7,164.08)
Due to Current Fund
240,425.41
240,425.41
Due to Grant Fund
23,775.00
23,775.00
Due to Trust Fund
522,787.01
522,787.01
Improvement Authorizations Funded
1,785,549.58
1,287,754.56
Improvement Authorizations Expended
(2,985,061.94)
(3,041,999.13)
Unexpended Proceeds of BAN's Issued
322,509.20
Reserve for Encumbrances
1,409,753.13
2,739,089.59
Reserve for:
Capital Improvement Fund
41,834.58
7,775.58
Insurance Refund
4,838.08
4,838.08
To Pay Debt Service
64,317.08
84,989.08
Fund Balance
535.57
535.57
$
0.00
$
1,512,647.34
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
2017
Increases
Decreases
2018
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
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
277,291.44
22,708.56
State ofNJ DOT-Warrenville Road
1893-16
353,700.00
151,629.45
202,070.55
State of NJ DOT -South Avenue
1909-17
100,000.00
100,000.00
Due from Township of Piscataway - South Avenue
1909-17
1,910,911.06
749,949.70
I, 160,961.36
State ofNJ DOT -Runyon Avenue
1947-18
280,000.00
141,946.76
138,053.24
$ 1,426,497.97
$ 2,190,911.06
$ 1,320,817.35
$ 2,296,591.68
Ref.
C
C-13
C-2
C
99
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, 2017
C
$
11,645,938.37 $
8,432,000.00 $
590,301.01
$
67,370.35 $
2,556,267.01
Decreased by:
Serial Bonds/Loans Paid From
C-9,C-10
Budget Appropriation
C-11,C-12
1,947,650.22
966,000.00
102,853.33
11,707.12
867,089.77
Balance - December 31, 2018
C
$
9,698,288.15 $
7,466,000.00 $
487,447.68 $
55,663.23 $
1,689,177.24
100
SCHEDULE OF DEFERRED CHARGES TO FUTURE T AXA T!ON - UNFUNDED
ORD.
BALANCE
20!8
20!8
NO.
IMPROVEMENT DESCRIPTION
DEC. 3! 20!7
t,UTHOR.
FUNDING
General Improvements
1808-!2
Acq and Demolition of Certain Flood Prone Properties
$
166,547.55 $
$
$
1857-14
Improvements to Marlborough Ave
30,400.00
!893-16
Various Capital Improvements
989,780.00
!907-17
Sanitary Sewer Improvements
2.)27.500.00
1909-17
South Ave Improvements
100,000.00
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
1947-18
Various Capital Improvements
1,882,106.00
141,946.76
$
6,228,722.55
$
1,882,106.00
$
141,946.76
$
Ref.
C
C-8
C-IJ
Unexpended Balances of Unfunded lmprov. Authors.
Less: Unexpended Proceeds of Bond Anticipation Notes
BALANCE
DEC. 3! 20!8
166,547.55
30,400.00
989,780.00
2,327,500.00
100,000.00
1,745,625.00
380,000.00
488,870.00
1,740,159.24
7,968,881.79
C
Exhibit - C-6
ANALYSIS OF BALANCE - DECEMBER 3 l 20! 8
UNEXPENDED
BOND
BALANCE OF
ANTICIPATION
!MPROV.
NOTES
!)_XPENDED
AUTHOR.
$
78,131.56 $
88.415.99
4,823.27
25,576.73
989,780.00
l.343,366.45
984, l 33.55
100,000.00
1,745,625.00
175,725.00
51,438.87
152,836.13
488,870.00
1,464,238.98
275,920.26
$ 3,400,000.00 $
3,041,999.13
$
1,526,882.66
C-15
$
1,849,391.86
I 893-16
94,542.51
1920-17
179,23737
1924-17
48.729.32
322,509.20
$
1,526,882,66
101
Ref.
Balance - December 31, 2017
Due From
C
$
Due To
C
Balance - December 31, 2018
Due From
C
Due To
C
$
SCHEDULE OF INTERFUNDS
GENERAL CAPITAL FUND
TOTAL
CURRENT
7,164.08 $
$
786,987.42
240,425.41
7,164.08
786,987.42 $
240,425.41 $
ASSESSMENT
TRUST
7,164.08
7,164.08
$
$
TRUST-
OTHER
522,787.01
522,787.01
$
$
Exhibit - C - 7
GRANT
FUND
23,775.00
23,775.00
102
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
Exhibit C-8
RESERVE FOR
RESERVE FOR
ORD.
ORDINANCE
BALANCE- DEC. 31, 2017
2018
ENCUMBR.
PAIDOR
ENCUMBR.
BALANCE- DEC. 31, 2018
NO.
IMPRO\!E.MENT DESCRIPTION
DATE
t\,_MQ_\)}J_I
FUNDED
UNFUNDED
A.®TORIZ,1, TJONS
12/31/2017
CHARGED
!2/3!/20!8
!:LlHDED
UNFUNDE_Q
General I.rrmrovcmcots:
1611-04
Improvement to the Sanitary Sewer System
(Infrastructure Trust $1,689,655)
07/13/04
$ L627.000.00
$
176,527.28
$
$
$
$
176,527.28
$
1687-06
Various Capital Improvements (NJDOT - $200,000)
10/20/06
1,358,900.00
3,075.53
3,075.53
!808-12
Acq and Demolition of Certain Flood Prone Properties 03/27/!2
2,540,000.00
88,415.99
88.415.99
18!8-12
Various Capital Improvements
08/28/12
l,l !6,450.00
57.325.94
576.67
17,796.70
22,321.00
17,784.91
1832-13
Various Capital Improvements (MCIA)
07/26/13
3,081,700.00
254,856.67
1,475.10
48,730.11
25,511.75
182,089.91
1842-13
Reconstruction of Fairview Ave (NJDOT-$300,000)
08/27/1]
380,000.00
64,062.83
64,062.83
1855-14
Various Capital Improvements {MCIA)
09/09/14
888,325.00
334,905.94
2,200.00
27,000.00
305,705.94
1857-14
Improvements to Marlborough Ave (NJDOT - $300,00 09/09/14
332.000.00
25,576.73
25.576.73
1879-15
Various Capital Improvements (MCJA)
07/19/tS
1,176,500.00
431,830.76
10,760.00
15,390.90
427,199.86
1893-16
Various Capital Improvements
08/09/16
1,393,000.00
129,537.67
79,263.64
95,793.49
18,465.31
94,542.51
1899-16
Various Capital Improvements
10/11/16
614,202.14
131,522.9!
25,591.51
74,181.93
26,000.00
56,932.49
1900-16
Milling and Paving of Various Roads
!0/11/16
300,000.00
91,191.40
11,863.82
4,086.48
44,592.93
54,375.81
1907-17
Sanitary Sewer Improvements
02/14/17
2,450,000.00
2,!65,564.45
89,753.11
!07,112.42
1,!64,071.59
984,133.55
1909-17
South Ave Improvements
02/!4/17
400,000.00
240,250.32
!00,000.00
340,250.32
1920-17
20!7 Capita! Improvements
05/23/17
1,837,500.00
506,454.77
660,752.74
591,117.21
396,852.93
179,237.37
1922-17
Warrcnvi!!e Rd Improvements
07/25/! 7
400,000.00
18!,245.00
61,982.54
90,391.41
!52.836.!3
1924-17
George Ave Improvements
09/19/17
514,600.00
46,866.00
467,734.00
465,870.68
48,729.32
1947-18
Various Capita! Improvements
08/14/18
\,98!,165.00
1,981,165.00
690 970.66
1,014,274.08
275,920.26
'
1,785,549.58
$3,243 660.61
$
1,981,165.00
$1,409,753.13
$2 543 892.31
$2,739,089.59
$ l,287,754.56
$ 1,849,391.86
Ref.
C
C
C
C-2
C
C
C
Deferred Charges to Future Taxation - Unfunded
C-6
$
l,882,!06.00
Capital Improvement Fund
C-!4
99,059.00
$
1,981,165.00
103
SCHEDULE OF GENERAL SERIAL BONDS
Exhibit - C-9
MATURITIES OF BONDS
DATE OF
ORIGINAL
OUTSTANDING- DEC. 31 2018 INTEREST
BALANCE
BALANCE
ISSUE
ISSUE
ISSUE
DATE
AMOUNT
RATE
DEC.31 2017
DECREASE
DEC.31 2018
General Improvement Bonds of20l0
02/15/10
$ 9,865,000.00
02/l 5/l 9
$ 700,000.00
3.000%
$ 6,065,000.00
$ 700,000.00
$ 5,365,000.00
02/15/20
700,000.00
3.200%
02/15/2 l
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 of 2015
07/16/15
2,878,000.00
07/15/19
273,000.00
2.000%
2,367,000.00
266,000.00
2,101,000.00
07/15/20
283,500.00
2.000%
07/15/21
290,500.00
2.000%
07/15/22
301,000.00
2.000%
07/15/23
308,000.00
2.000%
07/15/24
318,500.00
2.500%
07/15/25
326,500.00
2.500%
$ 8,432,000.00
$ 966,000.00
$ 7,466,000.00
Ref.
C
C-5
C
104
PROJECT DESCRIPTION
Capital Equipment - 2008
Capital Equipment - 2013
Capital Equipment - 2014 (Lease)
Capital Equipment- 2014 (Loan)
Capital Equipment - 2015
SCHEDULE OF CAPITAL LEASES PAYABLE
MIDDLESEX COUNTY IMPROVEMENT AUTHORITY
AMOUNT
OF
LOAN
$ 572,745.83
2,900,567.38
120,994.00
738,861.92
1,146,063.89
FEES
INTERESTMATURITIES OF LEASES
PAYABLE
RATE
$ 14,522.02
56,064.13
4.000%
4.000%
4.000%
4.000%
4.000%
910.59
3.000%
5,560.58
3.000%
6,123.76
4.000%
4.000%
DATE
08/15/19
08/15/20
08/15/21
08/15/22
08/15/23
09/15/19
09/15/19
09/15/19
09/15/20
AMOUNT
$ 190,000.00
200,000.00
205,000.00
215,000.00
220,000.00
25,456.61
155,453.32
234,444.76
243,822.55
Exhibit - C-10
BALANCE
BALANCE
DEC. 31 2017
DECREASED
DEC.31,2018
$
66,833.58
$
66,833.58
$
1,426,999.21
396,999.21
1,030,000.00
50,171.76
24,715.15
25,456.61
306,378.87
150,925.55
155,453.32
705,883.59
227,616.28
478,267.31
$ 2,556,267.01
$
867,089.77
$
1,689,177.24
C
C-5
C
105
Exhibit - C-11
SCHEDULE OF LOANS PAYABLE
NJ ENVIRONMENTAL INFRASTURCTURE TRUST LOAN AND FUND LOAN PAYA!JLE
NET
NET
BALANCE-
PRINCIPAL
BALANCE-
PAYMENT
DATE OF
PRINCIPAL
INTEREST
SAVINGS
SAVINGS
TOTAL
TRUST LOAN
DATE OF
PAYMENTS
FUND LOAN
NUMBER COUPON !'AYMENT
PAYMENTS
PAYJ,IENTS
PRINC[PAL
INTEREST
PAYMENTJ;
PAY AB_!,__!;
PAYMENT
ONLY
PAYABLE
NJ Infrastructure Trust Loan:
NJ Infrastructure Fund Loan:
350,000.00
210,671.38
28
02101/19
8,303.13
1,336.46
6,966.67
350,000.00
02101/19
5,392.79
205,278.59
29
5.000%
08101119
50,000.00
8,303.13
12,345.52
1,33 l.48
44,626.13
300,000.00
08101/19
37,867.28
167,411.31
30
02101120
7,053.13
1,027.67
6,025.46
300,000.00
0210!/20
4,580.93
162,830.38
31
5,000%
08/01120
55,000.00
7,053.13
13,041.88
1,029.49
47,981.76
245,000.00
08101/20
40,302.57
122,527.81
32
02101121
5,678.13
701.36
4,976.77
245,000.00
02101121
3,687.88
118,839.93
33
5.000%
08101/21
55,000.00
5,678.13
13,659.36
698.25
46,320.52
190,000.00
0810112!
39,409.82
79,430.11
34
02/0l/22
4,303.13
359.84
3,943.29
190,000.00
0210!/22
2,794.83
76,635.28
35
5.000%
08101/22
60,000.00
4,303.13
14,392.04
359.8!
49,55 l.28
130,000.00
08/0l/22
41,764.22
34,871.06
36
02101123
2,803.13
2,803.13
130,000.00
02101/23
1,820.60
33,050.46
37
4.250%
08/0l/23
65,000.00
2,803.13
9,825.92
57,977.21
65,000.00
08/0l/23
33,050.46
38
0210!/24
1,421.88
1,421.88
65,000.00
02101124
39
4.375%
08/01124
65,000.00
1,421.88
9,958.98
56,462.90
08/0l/24
Total Due
Principal
$ 350,000.00
Principal Only
$ 210,671.38
Interest
$ 59,125.06
Savings Credits
$ 73,223.70
$ 6,844.36
Principal and Interest
$ 329,057.00
Payments
NET
Payments
Made in
SAVINGS
Made in
;rn_rn
PRINCIPAL
2018
26
02/0l/18
02101118
$
6,204.66
27
08101/18
$
50,000.00
$ 11,815.37
08/01118
38,679.14
$
50,000.00
$ 11,815.37
$ 44,883.80
REF.
C-5
C-5
C-5
106
Exhibit - C-12
SCHEDULE OF LOA'-!S PAY ABLE
NEW JERSEY GREEN TRUST FUND - 1989
BALANCE-
PAYMENT
DATE OF
INTEREST
PRINCIPAL
LOANS
NUMBER
PAYMENT
PAYMENTS
PAYMENTS
PAYABLE
$ 55,663.23
31
January 15, 2019
$
556.63
$
5,941.51
49,721.72
32
July 15,2019
497.22
6,000.93
43,720.79
33
January 15, 2020
437.21
6,060.94
37,659.85
34
July 15, 2020
376.60
6,121.55
31,538.30
35
January 15, 2021
315.38
6,182.76
25,355.54
36
July 15, 2021
253.56
6,244.59
19,110.95
37
January 15, 2022
191.11
6,307.03
12,803.92
38
July 15, 2022
128.04
6,370.10
6,433.82
39
January 15, 2023
64.30
6,433.82
Total Balance Due -
Principal and Interest
$ 2,820.05
$ 55,663.23
Payments Made
Made in 2018
29
January 15, 2018
$
673.70
$
5,824.44
30
July 15, 2018
615.46
5,882.68
$
1,289.16
$ 11,707.12
REF.
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
SCHEDULEOF VARIOUS RESERVES
Ordinance
Balance
Number
December31,2017
Reserve for:
Cash or Appropriated Reserves:
Insurance Refund - Landfill (Payment of Bonds)
$
4,838.08
Payment of Debt Service
64,317.08
Subtotal
69,155.16
Grants, Loans & Other Receivables:
New Jersey Environmental Infrastructure Trust
1611-04
58,305.00
Middlesex County - Cedar Ave.
1643-05
56.00
State of NJ OEM
1808-12
98,598.63
Federal Emergency Management Agency (FEMA)
1808-12
67,948.92
State of NJ DOT -South A venue
1909-17
100,000.00
Township of Piscataway - South Avenue
1909-17
State ofNJ DOT-Runyon Avenue
1947-18
Subtotal
324,908.55
$
394,063.71
Ref.
C
Cash Receipts
C-2
Cash Disbursements
C-2
Various Grants, Loans and Other Receivables
C-4
Deferred Charges - Unfunded
C-6
Increases
Decreases
$
$
20,672.00
20,672.00
1,910,911.06
749,949.70
280,000.00
141,946.76
2, 190,91 1.06
891,896.46
$ 2,211,583.06
$
891,896.46
s
20,672.00
$
749,949.70
2, 190,91 1.06
141,946.76
$ 2,211,583.06
$
891,896.46
Exhibit-C-13
Balance
December 31, 2018
$
4,838.08
84,989.08
89,827.16
58,305.00
56.00
98,598.63
67,948.92
100,000.00
I, 160,961.36
138,053.24
1,623,923.15
$
1,713,750.31
C
108
Balance - December 3 l, 20 l 7
Increased by:
Budget Appropriation
Decreased by:
SCHEDULE OF RESERVE FOR
CAP IT AL IMPROVEMEJ\T FUND
REF.
C
C-2
Appropriated to Finance Improvement
Authorizations
C-8
C
Balance - December 31, 20 l 8
Exhibit - C-14
$
41,834.58
65,000.00
106,834.58
99,059.00
$
7,775.58
109
ORD.
NO.
IMPROVEMENT DESCRIPTION
1893-16
Various Capital Improvements
1920-17
2017 Capital Improvements
1922-17
Warrenville Rd Improvements
1924-17
George Ave Improvements
SCHEDULE OF BOND ANTICIPATION NOTES
ORIGINAL
DATE OF
DATE OF
DATE OF INTEREST
ISSUE
ISSUE
MATURITY
RATE
06/28/18
06/28/18
06/27/19
2.75%
06/28/18
06/28/18
06/27/19
2.75%
06/28/18
06/28/18
06127/19
2.75%
06/28118
06/28118
06/27119
2.75%
Ref.
Exhibit - C-15
BALANCE
BALANCE
DEC. 31,
DEC.31,
2017
INCREASED
2018
$
$
989,780.00
$ 989,780.00
1,745,625.00
1,745,625.00
175,725.00
175,725.00
488,870.00
488,870.00
$
$ 3,400,000.00
$ 3,400,000.00
C-2
C
110
Exhibit - C-16
BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
ORD.
BALANCE
AUTHORIZED
BAN'S
CASH
BALANCE
NUMBER
IMPROVEMENT DESCRIPTION
DEC.3I 20I7
2018
ISSUED
RECEIJ'TS
DEC.31 20I8
General:
1808-12
Acq and Demolition of Certain Flood Prone Properties
$
166,547.55
$
$
$
$
166,547.55
1857-14
Improvements to Marlborough Ave
30,400.00
30,400.00
1893-16
Various Capital Improvements
989,780.00
989,780.00
1907-17
Sanitary Sewer Improvements
2,327,500.00
2,327,500.00
1909-17
South Ave Improvements
100,000.00
100,000.00
1920-17
2017 Capital Improvements
1,745,625.00
1,745,625.00
1922-17
Warrenville Rd Improvements
380,000.00
175,725.00
204,275.00
1924-17
George Ave Improvements
488,870.00
488,870.00
I947-18
Various Capital Improvements
1,882,106.00
141,946.76
1,740,159.24
$
6,228,722.55
$
1,882, I 06.00
$
3,400,000.00
$
141,946.76
$
4,568,881.79
Re.[
C
111
SWIMMING POOL UTILITY FUND
112
Exhibit - D-5
SCHEDULE OF SWIMMING POOL UTILITY CASH AND INVESTMENTS
TREASURER
E,EF.
OPERATING FUND
CAPITAL FUND
SNACK BAR ACCOUNT
Balance - December 31, 2017
D
$
203,695. l 8
$
130,485.78
$
3,006.75
Increased by Receipts:
Membership Fees
D-3
$ 264,155.90
$
$
Miscellaneous Revenues
D-7
97,265.75
Snack Bar Operation
D-12
30,330.00
Due to Current Fund
D-13
1,475.22
115.59
Transfer from Snack Bar Account
D-5
12,381.66
375,278.53
30,445.59
578,973.71
130,485.78
33,452.34
Decreased by Disbursements:
Budget Appropriations
D-4
377,658.34
Appropriation Reserves
D-11
7,242.52
Snack Bar Operations
D-12
17,948.34
Due to Current Fund
D-13
1,486.03
113 .83
Improvement Authorizations
D-18
64,030.99
Transfer to Operating Fund
D-5
12,381.66
386,386.89
64,030.99
30,443.83
Balance - December 31, 2018
D
$
192,586.82
$
66,454.79
$
3,008.51
113
ANALYSIS OF SWIMMING POOL CAPITAL
CASH AND INVESTMENTS
BALANCE
DEC. 31,
2017
Capital Improvement Fund
$
7,730.10
Improvement Authorizations Funded
51,651.79
Improvement Authorizations Unfunded
(156,330.00)
Reserve for Encumbrances Payable
64,039.99
Due (from)/to Swimming Pool Operating Fund
160,774.90
Fund Balance
2,619.00
$ 130,485.78
Ref.
D
Exhibit - D-6
BALANCE
DEC. 31,
2018
$
7,730.10
51,660.79
(156,330.00)
160,774.90
2,619.00
$
66,454.79
D
114
SCHEDULE OF MISCELLANEOUS RECEIPTS
SWIMMING POOL UTILITY OPERA TING FUND
Miscellaneous (Net of Refunds):
Interest Income
Guest Admissions
Swim Classes Registration
Long Course
Swim Team Membership
Aquacize
Synchro Membership
Party Fees
Pool Rental
Syncro Show
Weekly Passes
Miscellaneous Income
Subtotal
D-3,D-5
Food Concession
D-3, D-12
Exhibit - D-7
YEAR2018
$
4,461.75
26,784.00
28,120.00
23,560.00
8,175.00
2,190.00
1,650.00
850.00
400.00
268.00
210.00
597.00
97,265.75
12,381.66
$
109,647.41
115
ACCOUNT
SCHEDULE OF FIXED CAPITAL
SWIMMING POOL UTILITY CAPITAL FUND
BALANCE
DEC. 31,
2017
Swimming Pool and Grounds
$
234,000.00
Improvement - 1987
217,721.56
Improvement - I 99 I
65,300.00
Improvement - 1997
149,270.00
$
666,291.56
REF.
D
$
$
SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UN COMPLETE
SWIMMING POOL UTILITY CAPITAL FUND
BALANCE
IMPROVEMENT
ORDINANCE
DEC. 3 I,
ORD.NO.
DESCRIPTION
DATE
AMOUNT
2017
1771-10
Swim Pool Improvements
07/27/10
$ 350,000.00
$
350,000.00
1852-14
Swim Pool Improvements
06/24/14
1,300,000.00
1,300,000.00
$ 1,650,000.00
D
SCHEDULE OF ACCOUNTS PAYABLE
SWIMMING POOL UTILITY FUND
REF.
Balance - December 31, 2017
D
Increased by:
Charges from Approp. Reserves
D-11
Balance - December 31, 2018
D
$
$
$
$
Exhibit - D-8
BALANCE
DEC. 31,
2018
234,000.00
217,721.56
65,300.00
149,270.00
666,291.56
D
Exhibit - D-9
BALANCE
DEC. 31,
2018
350,000.00
1,300,000.00
1,650,000.00
D
Exhibit - D-10
34,235.43
458.50
34,693.93
116
Operations:
Salaries and Wages
Other Expenses
REF.
Cash Disbursements
D-5
Accounts Payable
D-10
SCHEDULE OF 2017 APPROPRJATION RESERVES
SWIMMING POOL UTILITY OPERA TING FUND
BALANCE
DECEMBER 31, 2017
BALANCE
APROPRIA TION
RESERVE FOR
AFTER
RESERVES
ENCUMBRANCES
TRANSFERS
$
12,583.27
$
$
12,583.27
54,221.9]
6,395.92
60,617.83
$
66,805.18
$
6,395.92
$
73,20!. I 0
D
D
Exhibit - D-11
PAID OR
BALANCED
CHARGED
LAPSED
$
$
12,583.27
7,701.02
52,916.8]
$
7,701.02
$
65,500.08
D-1
$
7,242.52
458.50
$
7,701.02
117
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
$ 12,381.66
17,948.34
Exhibit - D-12
$
30,330.00
$
30,330.00
118
Exhibit. D-13
SCHEDULE OF !NTERFUNDS RECEIVABLE/PAY ABLE
SWIMMING POOL UTILITY OPERA TING FUND
SWIMMING
POOL
CURRENT
REF.
Total
CAPITAL
FUND
Balance • December 31, 20 I 7
D
Due from
$ 160,774.90
$
160,774.90
Due to
76.18
$
76.18
Increased by:
Budget Approp • Debt paid by Current Fund
D-4
35,472.00
35,472.00
Interest earned on investments
D-5
1,475.22
1,475.22
Interest earned on investments w snack bar
D-5
I 15.59
115.59
Accrued Interest on Bonds and Notes
D-19
21,112.50
21,112.50
219,026.39
160,774.90
58,251.49
Decreased by:
Interest earned on investments
D-5
1,486.03
1,486.03
Interest earned on investments w snack bar
D-5
113.83
113.83
Balance • December 3 I, 20 I 8
Due from
D
$ 160,774.90
$
160,774.90
Due to
D
56,651.63
$
56,651.63
119
SCHEDULE OF CAPITAL IMPROVEMENT FUND
SWIMMING POOL UTILITY CAPITAL FUND
REF.
Balance - December 31, 2017
D
Balance- December 31, 2018
D
SCHEDULE OF RESERVE FOR AMORTIZATION
SWIMMING POOL UTILITY CAPITAL FUND
Balance - December 31, 2017
Increased by:
Bonds Paid by Budge! Appropriation
Balance-December 31, 2018
REF.
D
D-20
D
Exhibit - D-14
$
7,730.10
$
7,730.10
Exhibit - D-15
$ 885,291.56
114,000.00
$ 999,291.56
120
ORD.NO.
1771-10
1852-14
SCHEDULE OF DEFERRED RESERVE FOR AMORTIZATION
SWIMMING POOL UTILITY CAPITAL FUND
IMPROVEMENT
DESCRIPTION
Swim Pool Improvements
Swim Pool Improvements
DATE OF
ORD.
07127/10
06124/14
BALANCE
DEC. 31,
2017
$ 100,000.00
65,000.00
Exhibit - D-16
BALANCE
DEC. 31,
2018
$ 100,000.00
65,000.00
$ 165,000.00
$ 165,000.00
D
D
SCHEDULE OF DUE TO SWIMMING OPERATING FUND
SWIMMING POOL UTILITY CAPITAL FUND
Balance - December 31, 2017
D
Balance - December 31, 2018
D
Exhibit - D-1 7
$ 160,774.90
$ 160,774.90
121
ORD.
NO.
IMPROVEMENT DESCRIPTION
General Improvements:
1771-10 Swim Pool Improvements
1852-14 Swim Pool Improvements
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
SWIMMING POOL UTILITY CAPITAL FUND
Exhibit • D-18
ORDINANCE
DATE
AMOUNT
BALANCE
DEC 31, 2017
FUNDE~
UNFUNDED
ENCUMB
DEC3! 2017
PAID OR
(;BARGED
BALANCE
DEC 31, 2018
FUlfilEQ
UNFUNDED
07/27/10
$
350,000.00
$
93,670.00
$ 93,670.00
06/24/14
1,300,000.00
$
51,651.79
$
64,039.99
$
64,030.99
$
51,660.79
$
51,651.79
$
93,670.00
$
64,039.99
$
64,030.99
$
51,660.79
$ 93,670.00
Ref.
D
D
D
D-5
D
D
122
Exhibit - D-19
SCHEDULE OF ACCRUED INTEREST ON BONDS AND NOTES
SWIMMING POOL UTILITY OPERATING FUND
REF.
Balance - December 31, 2017
D
$
Increased by:
Accrued Interest Charged to:
2018 Budget Appropriations
D-4
Decreased by:
Cash Disbursements
D-13
Balance - December 3 1, 2018
D
$
Analysis of Balance - December 31, 2018:
Principal
Outstanding
Interest
12/31/18
Rate
From
To
Period
Bonds
$902,000.00
Various
07/15/17
12/31/17
5.5 months
$
9,676.56
20,328.75
30,005.31
21,112.50
8,892.81
Amount
8,892.81
123
ISSUE
General Improvement Bonds of 2015
DATE OF
ISSUE
07/16/15
SCHEDULE OF GENERAL SERIAL BONDS
ORIGINAL
ISSUE
$ 1,235,000.00
MATURJTIES OF BONDS
OUTSTANDING-DEC. 31 2018
DATE
AMOUNT
07/15/19
$
117,000.00
07/15/20
121,500.00
07/15121
124,500.00
07/15/22
129,000.00
07/15123
132,000.00
07/15124
136,500.00
07/15125
141,500.00
Ref.
Exhibit - D-20
INTEREST
BALANCE
BALANCE
RATE
DEC. 31 2017
DECREASE
DEC. 31-2018
2.000%
$ 1,016,000.00
$ 114,000.00
$
902,000.00
2.000%
2.000%
2.000%
2.000%
2.500%
2.500%
$ 1,016,000.00
$ 114,000.00
$
902,000.00
D
D-15
D
124
Exhibit - D-21
BONDS AND NOTES AUTHORJZED BUT NOT ISSUED
ORD.
BALANCE
BALANCE
NUMBER
IMPROVEMENT DESCRIPTION
DEC. 31, 2017
DEC. 31, 2018
1771-10
Swim Pool Improvements
$
250,000.00
$
250,000.00
$
250,000.00
$
250,000.00
Ref.
D
125
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY, NEW JERSEY
PART III
SUPPLEMENTARY DATA
126
BOROUGH OF MIDDLESEX
MIDDLESEX COUNTY NEW JERSEY
COMBINED BALANCE SHEET ALL FUNDS
FOR THE YEAR ENDING DECEMBER 31 2018
GENERAL
SWIMMING
CURRENT
TRUST
CAPITAL
POOL
GOVERNMENT AL
MEMORANDUMTOTAL ONLY
ASSETS
fl/ND
FUND
FUND
UTILITY FUND
FIXED ASSETS
DEC. 31 2018
DEC. 31 2017
Cash and Investments
$
4,784,015.43
$
1,242,714.90
$
1,512,647.34
$
262,050.12
$
$
7,801,427 79 $
8,133,460.55
Accounts Receivable:
State & Federal Grants Receivable
1,539,229.11
74,594.91
2,296,591.68
3,910,415.70
3,018,145.41
Due from State ofNew Jersey
40,256.25
40,256.25
43,66L05
Taxes, Assessments, Liens &
Utility Charges
1,010,830.56
1,470.00
l,012,300.56
861,lOl.54
Interfund Loans
420,174.21
667,352.10
7,164.08
160,774.90
1,255,465.29
1,804,275.86
Other Accounts Receivable
81,198.64
81,198.64
208,993.03
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
150,000.00
150,000.00
Fixed Assets - General
21,769,424.00
21,769,424.00
21,769,424.00
Fixed Capita! - Utility
2,316,291.56
2,316,291.56
2,316,291.56
Deferred Charges to Future Taxation-
General Capital Fund
17 667 169 94
17667 16994
17 874 660.92
$
9,448,843.20
$
1,986,131.91
$ 21,483 573.04
$
2,739 I 16.58
$
21,769,424.00
$
57,427,088.73
$
57,453 152.92
GENERAL
SWIMMING
LIABILITIES, RESERVES
CURRENT
TRUST
CAPITAL
POOL
GOVERNMENT AL
MEMORANDUMTOTALONLY
AND FUND BALANCE
FUND
FUND
FUND
UTILITY FUND
FIXED ASSETS
DEC, 312018
DEC. 31 2017
Bonds and Notes Payable
$
$
$
10,866,000.00
$
902,000.00
$
$
11,768,000.00
$
9,448,000.00
Loans Payable
2,232,288.15
2,232,288.15
3,213,938.37
Prepaid Taxes, Assessments,
Utility Charges and Licenses
207,074.40
207,074.40
905,467.87
Tax, Assessment, Lien, License and
Utility Charge Overpayments
31,653.24
31,653.24
Appropriation Reserves
640,857.36
54,017.98
694,875.34
719,309.15
Reserve for Encumbrances/
Accounts Payable
1,393,250.67
183,727.15
2,739,089.59
59,168.42
4,375,235.83
2,374,073.93
Amts. Pledged to Specific Purposes
1,483,789.08
1,094,693.04
1,721,525.89
7,730.10
4,307,738.11
4,265,365.20
Escrow Funds
645,658.76
645,658.76
496,318.21
Improvement Authorizations
3,137,146.42
145,330 79
3,282,477.21
5,174,531.98
Interfund Loans
194,564.15
56,487.19
786,987 42
217,426 53
1,255,465.29
1,804,275.86
Investments in Governmental Fixed Assets
21,769,424.00
21,769,424.00
21,769,424.00
Reserve for Amortization of Costs of
Fixed Capital Acquired or Authorized
l,164,291.56
1,164,291.56
1,050,291.56
Reserve for Certain Assets Acquired
or Receivables & Inventories
2,911,567.41
2,911,567.41
2,782,504.29
Fund Balance
2 586 086.89
5,565.77
535.57
189 151.20
2 781 339.43
3 449 652.50
$
9,448,843.20
$
1,986,131.91
$ 21,483,573.04
$
2,739,116.58
$
21,769,424.00
$
57,427,088.73
$ 57,453 152.92
127
COMPARATIVE STATEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE · CURRENT FUND
Revenue and Other
Year 2018
Income Realized
Amount
Fund Balance Utilized
$2,211,000.00
Miscellaneous • From Other
Than Local Property
Tax Levies
5,386,360.52
Collection of Delinquent Taxes
and Tax Title Liens
490,906.74
Collection of Current
Tax Levies
43,420,174.67
Total Income
51,508,441.93
Expenditures
Budget Expenditures:
Municipal Purposes
19,249,484.33
County Taxes
5,919,779.82
Local School Taxes
24,777,077.00
Other Expenditures
105,658.49
Total Expenditures
50,051,999.64
Excess in Revenue
1,456,442.29
Adj. to Income Before Fund Balance:
Expend. Included Above Which are by Statute
Deferred Charges to Budget of Succeeding Years
150,000.00
Statutory Excess to Fund Balance
1,606,442.29
Fund Balance January I
3,190,644.60
4,797,086.89
Less:
Utilization as Anticipated
Revenue
2,211,000.00
Fund Balance December 31
$ 2,586,086.89
Year2017
%
Amount
%
4.29
$ 1,886,616.88
3.68
10.46
6,307,802.10
12.3 I
0.95
688,212.53
1.34
84.30
42,363,346.31
82.67
100.00
51,245,977.82
100.00
38.46
18,843,210.06
38.55
11.83
5,831,969.88
11.93
49.50
23,955,459.00
49.01
0.21
243,378.33
0.50
JOO.DO
48,874,017.27
100.00
2,371,960.55
2,371,960.55
2,705,300.93
5,077,261.48
1,886,616.88
$ 3,190,644.60
128
COMPARATIVE STATEMENT OF OPERATIONS AND CHANGE
IN FUND BALANCE - SWIMMING POOL UTILITY OPERA TING FUND
Revenue and Other
Year2018
Year 2017
Income Realized
Amount
%
Amount
%
Fund Balance Utilized
$128,060.00
22.57
$ 155,000.00
28.14
Membership Fees
264,155.90
46.56
276,587.50
50.21
Miscellaneous From Other
Than Membership Fees
175,147.49
30.87
119,284.69
21.65
Total Income
567,363.39
100.00
550,872.19
100.00
Expenditures
Budget Expenditures:
Operating
503,058.75
100.00
527,000.75
100.00
Total Expenditures
503,058.75
100.00
527,000.75
100.00
Excess in Revenue
64,304.64
23,871.44
Fund Balance January I
250,287.56
381,416.12
314,592.20
405,287.56
Less:
Utilization as Anticipated Revenue
128,060.00
155,000.00
Fund Balance December 3 I
$186,532.20
$ 250,287.56
129
COMPARATIVE SCHEDULE OF TAX RATE INFORMATION*
Tax Rate:
Apportionment of Tax Rate:
Municipal:
Municipal Library:
County:
County Open Space:
Local School:
Assessed Valuation:
2018
2017
2016
2018
2.503
0.099
1. 103
0.091
5.093
$495,020,711.00
*Per Abstract ofRatables, Middlesex County, NJ
2017
2.463
0.097
1.086
0.089
4.909
$496,055,584.00
2016
$8.359
2.393
0.094
1.034
0.086
4.752
$495 949 961.00
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 2018 to be $124,250.
COMPARISON OF TAX LEVIES AND COLLECTION CURRENTLY
A study of this tabulation could indicate a possible trend in future tax levies. A decrease in the
percentage of current collection could be an indication of a probable increase in future tax levies.
Percentage
Calendar
Cash
of
Year
Tax Levy
Collections
Collection
2018
$44,114,362.11
$43,420,174.67
98.43%
2017
42,939,795.47
42,363,346.31
98.66%
2016
41,510,703.28
40,773,289.51
98.22%
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
2018
$360,646.06
$650,184.50
$1,010,830.56
2.29%
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%
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 la
assessed valuation of such properties, was as follows:
Calendar
Year
2018
2017
2016
COMPARATIVE SCHEDULE OF FUND BALANCES
Current Fund
Swimming Utility
Operating Fund
Calendar
Year
2018
2017
2016
2015
2014
2018
2017
2016
2015
2014
Amount
$1,423,139.00
1,423,139.00
1,423,139.00
Balance
$2,586,086.89
3, I 90,644.60
2,705,300.93
2,793,961.86
1,701,515.87
$186,532.20
250,287.56
381,416.12
503,771.22
405,474.36
Utilized in
Budget of
Succeeding
Year
$2,200,000.00
2,211,000.00
1,886,616.88
1,618,212.06
1,019,770.00
$78,628.00
128,060.00
155,000.00
153,744.10
66,224.00
131
OFFICIALS IN OFFICE AND SURETY BONDS
The following officials were in office as at December 31, 2018:
NAME
Ronald J. DiMura
Robert Schueler
Kevin Dotey
Sean Kaplan
John Madden
Jack Mikolajczyk
Dan Parenti
Denise Biancamano
Carmen Modica
Kathleen Anello
Lizandra DeAngelis
Dennis Fackelman
Aravind Aithal, Esq.
Robert Klein
Terry Brundage
Thomas Reilly
Linda Chismar
Remington & Vemick
Beverly Weber
Katherine Bird
TITLE
Mayor
President of Council
Councilperson
Councilperson
Councilperson
Councilperson
Councilperson
Chief Financial Officer/
Tax Collector
Acting Purchasing Agent
Borough Clerk/Dog License Officer/
Assessment Search Officer
Court Administrator
Municipal Court Judge
Attorney
Construction Code ·Official
Health Officer
Tax Assessor
Deputy Borough Clerk/
Registrar of Vital Statistics
Engineer
Treasurer, Free Public Library
Secretary, Swim Pool Commission
AMOUNT
OFBOND
*
*
*
*
*
*
*
*
*
*
*
*
* 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
PARTIV
GENERAL COMMENTS AND RECOMMENDATIONS
133
BOROUGH OF MIDDLESEX
COUNTY OF MIDDLESEX, NEW JERSEY
YEAR ENDED DECEMBER 31, 2018
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, 2018, 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, 2018, 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 repotied 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 Jetter does not affect our report
dated August 27, 2019 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:
201 8-1 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:ll-4 states "Every contract or agreement, for the performance of any work or the
furnishing or hiring of any materials or supplies, the cost or the contract price whereof is to be
paid with or out of public funds not included within the terms of Section 3, of this act, shall be
made or awarded only after public advertising for bids and bidding therefor, except as is provided
otherwise in this act or specifically by any other law. No work, materials or supplies shall be
undertaken, acquired or furnished for a sum exceeding in the aggregate $17,500 except by
contract or agreement."
On September 28, 2015, the Local Public Contracts Law was amended, effective on July 1, 2015.
The amendment addresses the bid threshold (Section 7, N.J.S.A. 40A:l 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, 2018, 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:
Emergency Roof Repairs at Police Headquarters; Rehab of Sanitary Sewer System; Road
Improvements; Mountainview Park Improvements
The minutes indicated the adoption of resolutions authorizing the purchase through state
approved vendors as required by N.J.A.C. 5:34-1.2.
The minutes indicate that resolutions were adopted and advertised authorizing the awarding
contracts or agreements for "Professional Services" per N.J .S.A. 40A: 11-5.
Inasmuch as the system of records did not provide for an accumulation of payments for categories
for the performance of any work or the furnishing or hiring of any materials or supplies, the
results of such an accumulation could not reasonably be ascertained.
Disbursements were
reviewed, however, to determine whether any clear-cut violations existed.
136
GENERAL COMMENTS
OTHER MATTERS (Cont'd.)
Contracts and Agreements Required
to be Advertised Per N.J.S.A. 40A: 11-4 (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:l l-6.
Any interpretations as to possible violation ofN.J.S.A. 40A:l l-4 and N.J.A.C. 5:30-14 would be
in the province of the municipal solicitor.
Compliance with P.L. 2005, c.271
The threshold for Pay-to-Play is set at $17,500, with no escalator provision. "Pay-to-Play" laws
cover all contracts (not just professional services as some believe). Any contract (or aggregation
of purchases of similar goods or services) that does not meet "fair and open" standards requires
the Borough to obtain the necessary c. 271 documents. The provisions of c. 271 became effective
on January 1, 2006.
A non-compliance would result with the issuance of purchase orders exceeding $17,500 during
the fiscal period without a "fair and open" process, and without obtaining the requisite
disclosures. It is important to note that the laws and regulations implementing "Pay-to-Play"
focus on vendors rather than categories of goods and services. While this change may appear
subtle, it greatly expands the monitoring required to assure continuing compliance.
Tests of expenditures for vendors with payments in excess of $17,500.00 and less than the
applicable bid threshold indicated the Borough had the required documentation for compliance
with P.L. 2005, c.271 for items tested.
Collection 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, 2018, 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 ( JO) 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 IT RESOLVED that the Borough Council does hereby fix the rate of
interest at eight percent (8%) per annum on the first One Thousand Five Hundred Dollars
($1,500) and at eighteen percent (18%) per annum on any amount in excess of One thousand Five
Hundred Dollars ($1,500) from the date when any tax installment shall be payable and delinquent
until the said installment together with interest is paid provided, however, that if any installments
shall be paid within ten ( l 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 5, 2018. 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:
Investments
Year
CY 2018
CY 2017
CY20l6
Number of Liens
9
9
9
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".
Interfund Balances
lnterfund Balances appear in the balance sheets of the Borough's financial statements of the year
ended December 3 l, 2018.
These interfunds, in most cases, resulted from CY 2018 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-l 5, 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 2018, 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, 2018. 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 infonnation relating to job descriptions and procedures
manual.
Cybersecurity
As part of its overall risk management, the Borough reviews security measures in place relating to
its Infonnation Technology (IT), including the use of specialized assessments. With the ever
increasing challenges relating to cybersecurity, each organization determines what particular
assessment or combination of assessments best fits its infonnation security strategy. We suggest
management continue to assess risks related to cybersecurity along with the utilization of
specialized assessments, which would also include a periodic reporting mechanism to those
charged with governance.
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 perfonn 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.
141
GENERAL COMMENTS
OTHER MATTERS (Cont'd.)
Internal Control Documentation
Compliance with Local Finance Notices
In accordance with Local Finance Notice No. CFO-JO, 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 20 I 6, pursuant to Local
Finance Notice No. 92-I 5 issued by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey.
142
RECOMMENDATIONS
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
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"...elinquent Taxes and Tax Title Liens Property Acquired for Tax Title Lien Liquidation Comparative Schedule of Fund Balances Officials in Office and Surety Bonds PART IV - GENERAL COMMENTS AND RECOMMENDATIONS General Comments Recommendations PAGE(S) 11 I I 12 113 114 115 115 115 116 117 I I 8 1..."
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