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Executive Summary
The Borough of Middlesex's audit report for the year ended December 31, 2020, prepared by Holman Frenia Allison, P.C., includes an independent auditor's report, financial statements on a regulatory basis, and supplementary exhibits as required by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. The financial statements cover various funds including the Current Fund, Trust Fund, General Capital Fund, and Swimming Pool Utility Fund. The audit report also addresses internal control over financial reporting and compliance with laws, regulations, contracts, and grant agreements.
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--- Document: 2020 Middlesex Borough Municipal Audit Document ---
BOROUGH OF MIDDLESEX
AUDIT REPORT FOR THE YEAR
ENDED DECEMBER 31, 2020
Exhibit
Page
Independent Auditor's Report
1
Independent Auditor's Report on Internal Control over
Financial Reporting and on Compliance Based on an
Audit of Financial Schedules Performed in Accordance
with Government Auditing Standards
5
Basic Financial Statements - Regulatory Basis:
Current Fund
Statements of Assets, Liabilities, Reserves and Fund Balance -
Regulatory Basis
A
7
Statements of Operations and Changes in Fund Balance -
Regulatory Basis
A-1
9
Statement of Revenues - Regulatory Basis
A-2
10
Statement of Expenditures - Regulatory Basis
A-3
12
Trust Fund
Statements of Assets, Liabilities, Reserves and Fund Balance -
B
19
Regulatory Basis
Assessment Fund - Statement of Fund Balance- Regulatory Basis
B-1
21
General Capital Fund
Statements of Assets, Liabilities, Reserves and Fund Balance -
Regulatory Basis
C
22
Statement of Fund Balance - Regulatory Basis
C-1
23
Swimming Pool Utility Fund
Statements of Assets, Liabilities, Reserves and Fund Balance -
Regulatory Basis
D
24
Statements of Operations and Change in Operating Fund Balance -
Regulatory Basis
D-1
26
Capital Fund -
Statement of Fund Balance - Regulatory Basis
D-2
27
Operating Fund -
Statement of Revenues - Regulatory Basis
D-3
28
Statement of Expenditures - Regulatory Basis
D-4
29
Governmental Fixed Assets
Statement of Governmental Fixed Assets -
E
30
Balance Sheet - Regulatory Basis
Notes to Financial Schedules
33
Part I
BOROUGH OF MIDDLESEX
COUNTY OF MIDDLESEX, NEW JERSEY
TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
COUNTY OF MIDDLESEX, NEW JERSEY
TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2020
Supplementary Exhibits:
Current Fund
Schedule of Cash - Treasurer
A-4
77
Schedule of Change Funds
A-5
78
Schedule of Taxes Receivable and Analysis of Property Tax Levy
A-6
79
Schedule of Nonbudget Revenues & Revenue Accounts Receivable
A-7
80
Schedule of Interfunds Receivable/Payable
A-8
81
Schedule of 2018 Appropriation Reserves
A-9
82
Schedule of Sewer Flow Charges Receivable
A-10
86
Schedule of Due From/(To) State of New Jersey - Senior Citizens & Veterans Deductions
A-11
87
Schedule of Tax Title Liens
A-12
88
Schedule of Changes in Various Accounts Payables & Reserves
A-14
89
Schedule of Local School Taxes Payable - Deferred School Taxes
A-15
90
Schedule of Federal and State Grants Receivable
A-16
91
Schedule of Reserves for State and Federal Grants and Matching Funds - Appropriated
A-17
92
Schedule of Reserves for State Grants - Unappropriated
A-18
94
Schedule of Due From Current Fund - Grant Fund
A-19
95
Trust Fund
Analysis of Cash and Investments
B-2
99
Schedule of Assessment Liens
B-3
100
Schedule of Reserve for Animal Control Fund Expenditures
B-4
101
Schedule of Due to State of New Jersey Department of Health
B-5
102
Schedule of Due to General Capital Fund
B-6
103
Schedule of Due to Current - Assessment Trust Fund
B-7
103
Schedule of Reserves Activity
B-8
104
Schedule of Developers Escrow
B-9
105
Schedule of Public Assistance
B-10
106
Schedule of Payroll Reserve
B-11
107
General Capital Fund
Schedule of Cash and Investments - Treasurer
C-2
111
Analysis of Cash and Investments
C-3
112
Schedule of Deferred Charges to Future Taxation - Funded
C-4
113
Schedule of Deferred Charges to Future Taxation - Unfunded
C-5
114
Schedule of Reserve Capital Improvement Fund
C-6
115
Schedule of Receivable
C-7
116
Schedule of Improvement Authorizations
C-8
117
Schedule of Various Reserves
C-9
118
Schedule of Interfunds
C-10
119
Schedule of Capital Leases Payable - Middlesex County Improvement Authority
C-11
120
Schedule of General Serial Bonds
C-12
121
Schedule of NJ Environmental Infrastructure Trust and Fund Loan Payable
C-13
122
BOROUGH OF MIDDLESEX
COUNTY OF MIDDLESEX, NEW JERSEY
TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2020
General Capital Fund (continued)
Schedule of New Jersey Infrastructure Bank Loan
C-14
123
Schedule of Bond Anticipation Notes
C-15
124
New Jersey Green Trust Fund - 1989
C-16
125
Statement of Bonds and Notes Authorized But Not Issued
C-17
126
Swimming Pool Utility Fund
Schedule of Cash and Investments
D-5
129
Analysis of Cash and Investments - Capital
D-6
130
Schedule of Fixed Capital
D-7
131
Schedule of Fixed Capital Authorized and Uncompleted
D-8
132
Schedule of Accounts Payable
D-9
133
Schedule of Appropriation Reserves - Operating
D-10
134
Schedule of Interfunds Receivable/Payable - Operating
D-11
135
Schedule of Reserve for Amortization - Capital
D-12
136
Schedule of Capital Improvement Fund
D-13
136
Schedule of Deferred Reserve for Amortization - Capital
D-14
137
Schedule of Interfunds Receivable/Payable - Capital
D-15
138
Schedule of Improvement Authorizations - Capital
D-16
139
Schedule of Accrued Interest on Bonds and Notes
D-17
140
Schedule of Serial Bonds
D-18
141
Schedule of Bonds and Notes Authorized But Not Issued - Operating
D-19
142
Schedule of Findings & Questioned Costs
145
Summary Schedule of Prior Audit Findings & Questioned Costs as
Prepared by Management
146
Letter of Comments and Recommendations -Regulatory Basis
Officials in Office and Surety Bonds
149
General Comments
151
Other Comments
152
Recommendations
152
Acknowledgement
153
Part II
Part II
BOROUGH OF MIDDLESEX
COUNTY OF MIDDLESEX
AUDIT REPORT FOR THE
THE YEAR ENDED DECEMBER 31, 2020
INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and Members
of the Borough Council
Borough of Middlesex
County of Middlesex
Middlesex, New Jersey 08846
Report on the Financial Statements
We have audited the accompanying statements of assets, liabilities, reserves and fund balance - regulatory
basis of the various funds and account group of the Borough of Middlesex as of December 31, 2020 and
2019, and the related statement of operations and changes in fund balance - regulatory basis for the year
then ended, the related statement of revenues - regulatory basis, and statement of expenditures -
regulatory basis for the year ended December 31, 2020 and 2019 and the related notes to the financial
statements, which collectively comprise the Borough’s basic financial statements as listed in the table of
contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles and practices prescribed by 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 fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and in compliance with 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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the Borough’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
1
www.hfacpas.com
1415 Hooper Avenue, Suite 305, Unit A, Toms River, NJ 08753 • By Appointment Only
1985 Cedar Bridge Avenue, Suite 3, Lakewood, NJ 08701 • Tel: 732.797.1333
194 East Bergen Place, Red Bank, NJ 07701 • Tel: 732.747.0010
the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of
America
As described in Note 1, the financial statements are prepared by the Borough of Middlesex on the basis of
the financial reporting provisions of the Division of Local Government Services, Department of
Community Affairs, State of New Jersey, which is a basis of accounting other than accounting principles
generally accepted in the United States of America, to meet the requirements of the State of New Jersey.
The effects on the financial statements of the variances between the regulatory basis of accounting
described in Note 1 and accounting principles generally accepted in the United States of America,
although not reasonably determinable, are presumed to be material.
Adverse Opinion on Accounting Principles Generally Accepted in the United States of America
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 above do
not present fairly, in accordance with accounting principles generally accepted in the United States of
America, the financial position of the Borough, as of December 31, 2020 and 2019, or the results of its
operations and changes in fund balance for the year then ended.
Unmodified Opinion on Regulatory Basis of Accounting
In our opinion, the financial statements referred to above present fairly, in all material respects, the assets,
liabilities, reserves and fund balance - regulatory basis of the various funds of the Borough, as of
December 31, 2020 and 2019, and the results of its operations and changes in fund balance - regulatory
basis of such funds for the year then ended, and the statement of revenues - regulatory basis, statement of
expenditures - regulatory basis of the various funds, and general fixed assets group of accounts –
regulatory basis, for the year ended December 31, 2020 in conformity with accounting principles and
practices prescribed by the Division of Local Government Services, Department of Community Affairs,
State of New Jersey as described in Note 1.
Other Matters
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements referred to in the
first paragraph as a whole. The supplemental schedules presented for the various funds and letter of
comments and recommendations section are presented for purposes of additional analysis as required by
the Division of Local Government Services, Department of Community Affairs, State of New Jersey and
is not a required part of the basic financial statements. The schedule of expenditures and state financial
assistance is presented for purposes of additional analysis as required by New Jersey OMB’s Circular 15-
08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid is also presented for
purposes of additional analysis and is not a required part of the basic financial statements.
2
The supplemental schedules presented for the various funds are the responsibility of management and was
derived from and relates directly to the underlying accounting and other records used to prepare the
financial statements. Such information has been subjected to the auditing procedures applied in the audit
of the financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the information is
fairly stated in all material respects in relation to the financial statements of each of the respective
individual funds and account group taken as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated September 30,
2021 on our consideration of the Borough's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the Borough's internal control over
financial reporting and compliance.
Respectfully submitted,
HOLMAN FRENIA ALLISON, P.C.
Robert W. Allison
Certified Public Accountant
Registered Municipal Accountant
RMA No. 483
Lakewood, New Jersey
September 30, 2021
3
This page intentionally left blank.
4
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Honorable Mayor and Members
of the Borough Council
Borough of Middlesex
County of Middlesex
Middlesex, New Jersey 08846
We have audited, in accordance with the auditing standards generally accepted in the United States of
America, the standards applicable to financial audits contained in Government Auditing Standards issued
by the Comptroller General of the United States and audit requirements as prescribed by the Division of
Local Government Services, Department of Community Affairs, State of New Jersey, the financial
statements - regulatory basis of the Borough of Middlesex, as of and for the year ended December 31,
2020, and the related notes to the financial statements, which collectively comprise the Borough's basic
financial statements, and have issued our report thereon dated September 30, 2021. Our report indicated
that the Borough’s financial statements were not prepared in accordance with accounting principles
generally accepted in the United States of America but rather prepared in accordance with the regulatory
basis of accounting prescribed by the Division of Local Government Services, Department of Community
Affairs, State of New Jersey.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Borough's internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the Borough’s internal control. Accordingly, we
do not express an opinion on the effectiveness of the Borough’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
5
www.hfacpas.com
1415 Hooper Avenue, Suite 305, Unit A, Toms River, NJ 08753 • By Appointment Only
1985 Cedar Bridge Avenue, Suite 3, Lakewood, NJ 08701 • Tel: 732.797.1333
194 East Bergen Place, Red Bank, NJ 07701 • Tel: 732.747.0010
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Borough's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed one instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards and audit requirements as prescribed by the Division of
Local Government Services, Department of Community Affairs, State of New Jersey.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Borough's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards and audit requirements as prescribed by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey in considering the
Borough’s internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Respectfully Submitted,
HOLMAN FRENIA ALLISON, P.C.
Robert W. Allison
Certified Public Accountant
Registered Municipal Accountant
RMA No. 483
Lakewood, New Jersey
September 30, 2021
6
EXHIBIT A
REFERENCE
2020
2019
Current Fund:
Cash and Investments - Treasurer
A-4
5,306,241.41
$
4,409,188.51
$
Cash - Change Funds
A-5
500.00
500.00
Due from State of N.J. per Ch. 129
P.L. 1976
A-11
46,333.08
49,191.31
Total
5,353,074.49
4,458,879.82
Receivables With Offsetting Reserves:
Taxes Receivable
A-6
553,291.95
633,345.83
Tax Title Liens
A-12
415,884.70
419,307.69
Property Acquired for Taxes
A
1,423,139.00
1,423,139.00
Revenue Accounts Receivable
A-7
5,006.02
15,678.42
Sewer Flow Charges Receivable
A-10
23,133.38
49,458.18
Interfunds Receivable
A-8
297,781.62
411,033.05
Total Receivables & Other Assets With Full Reserves
2,718,236.67
2,951,962.17
Total Current Fund
8,071,311.16
7,410,841.99
State and Federal Grant Fund:
Cash
A-4
-
61,644.18
Grants Receivable
A-16
888,891.61
834,134.30
Due From General Capital Fund
A
23,775.00
23,775.00
Total State and Federal Grant Fund
912,666.61
919,553.48
Total Assets
8,983,977.77
$
8,330,395.47
$
ASSETS
BOROUGH OF MIDDLESEX
CURRENT FUND
FUND BALANCE - REGULATORY BASIS
DECEMBER 31, 2020 AND 2019
STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND
The accompanying Notes to the Financial Statements are an integral part of this Statement.
7
EXHIBIT A
REFERENCE
2020
2019
BOROUGH OF MIDDLESEX
CURRENT FUND
FUND BALANCE - REGULATORY BASIS
DECEMBER 31, 2020 AND 2019
STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND
Current Fund:
Liabilities:
Appropriation Reserves
A-3, A-9
1,341,045.60
$
1,015,316.75
$
Reserve for Encumbrances
A-3, A-9
221,696.89
233,034.69
Prepaid Taxes
A-4
334,690.95
245,302.70
Tax Overpayments
A
136,028.82
47,089.74
School Taxes Payable
A-15
722,740.00
555,868.00
Various Payables
A-14
123,000.47
113,836.47
Various Reserves
A-14
47,786.52
653,267.32
Interfunds Payable
A-8
97,248.68
97,248.68
Subtotal Current Fund
3,024,237.93
2,960,964.35
Reserve for Receivables & Other Assets
A
2,718,236.67
2,951,962.17
Fund Balance
A-1
2,328,836.56
1,497,915.47
Total Current Fund
8,071,311.16
7,410,841.99
State and Federal Grant Fund:
Unappropriated
A-18
-
6,493.53
Appropriated
A-17
777,963.11
690,462.85
Reserve for Encumbrance
A-17
63,600.63
222,597.10
Due to Current Fund
A-19
71,102.87
-
Total State and Federal Grant Fund
912,666.61
919,553.48
Total Liabilities, Reserves & Fund Balance
8,983,977.77
$
8,330,395.47
$
LIABILITIES RESERVES & FUND BALANCE
The accompanying Notes to the Financial Statements are an integral part of this Statement.
8
EXHIBIT A-1
REFERENCE
2020
2019
Revenue & Other Income Realized:
Fund Balance Utilized
A-1, A-2
1,100,000.00
$
2,200,000.00
$
Miscellaneous Revenue Anticipated
A-2
5,934,806.28
4,933,827.68
Receipts From Delinquent Taxes
A-2
600,695.74
561,026.18
Receipts From Current Taxes
A-2
45,808,928.24
44,609,463.47
Nonbudget Revenue
A-2
227,180.30
232,694.93
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
A-9
848,060.18
508,638.47
Grants Cancelled (Net)
A-17,A-18, A-19
-
48,787.67
Total Income
54,519,670.74
53,094,438.40
Expenditures:
Budget Appropriations:
Operating
Salaries & Wages
A-3
6,662,023.00
6,843,098.00
Other Expenses
A-3
10,839,438.04
10,411,945.00
State and Federal Programs Off-Set by Revenue
A-3
237,565.89
276,920.53
Municipal Debt Service
A-3
2,069,513.95
2,211,183.54
Capital Improvements
A-3
80,000.00
65,000.00
Deferred Charges and Statutory Expend.-Mun.
A-3
-
150,000.00
County Tax
A-13
6,026,740.39
6,040,553.83
Local District School Taxes
A-13
26,438,319.00
25,948,909.00
Interfunds Advanced
A-10
235,149.38
34,999.92
Total Expenditures
52,588,749.65
51,982,609.82
Excess/(Deficit) in Revenue
1,930,921.09
1,111,828.58
Statutory Excess to Fund Balance
1,930,921.09
1,111,828.58
Fund Balance January 1
A
1,497,915.47
2,586,086.89
Total
3,428,836.56
3,697,915.47
Decreased by: Utilization as Anticipated Revenue
A-2
1,100,000.00
2,200,000.00
Fund Balance December 31
A
2,328,836.56
$
1,497,915.47
$
FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019
BOROUGH OF MIDDLESEX
CURRENT FUND
STATEMENTS OF OPERATIONS
AND CHANGES IN FUND BALANCE - REGULATORY BASIS
The accompanying Notes to the Financial Statements are an integral part of this Statement.
9
EXHIBIT A-2
APPROPRIATED
BY
EXCESS OR
BUDGET
N.J.S.A.40A:47-87
REALIZED
(DEFICIT)
Fund Balance Utilized
1,100,000.00
$
-
$
1,100,000.00
$
-
$
Miscellaneous Revenue:
Licenses:
Alcoholic Beverages
13,510.00
-
13,534.00
24.00
Other
39,350.00
-
31,667.25
(7,682.75)
Fees & Permits - Other
5,475.00
-
6,082.77
607.77
Fines & Costs - Municipal Court
261,400.00
-
112,195.21
(149,204.79)
Interest & Costs on Taxes
135,000.00
-
162,903.52
27,903.52
Interest on Investments & Deposits
82,850.00
-
71,909.40
(10,940.60)
Cable Franchise Fees
94,018.59
-
94,018.59
-
Sewer Rents Receivable
1,038,750.00
-
992,084.50
(46,665.50)
Interfunds Returned
289,748.52
289,748.52
-
Payments in Lieu of Taxes-Presbyterian Homes
58,980.00
-
57,620.50
(1,359.50)
Payments in Lieu of Taxes- 150 Lofts, LLC
301,250.00
-
458,621.86
157,371.86
Host Community Benefit Funds
78,100.00
-
67,265.85
(10,834.15)
Consolidated Municipal Property Tax Relief Aid
14,397.00
14,397.00
-
Energy Receipts Taxes
1,765,417.00
-
1,765,417.00
-
Dedicated Uniform Construction Code Fees Offset
with Appropriations (N.J.S.A. 40A:4-36 and N.J.A.C. 5:23-4.17)
Uniform Construction Code Fees
475,100.00
-
846,013.00
370,913.00
Hazardous Waste Facilities Sitting Act (N.J.S.A. 13-15-80)
20,000.00
-
20,000.00
-
Public and Private Revenues Offset with Approps.:
Recycling Tonnage Grant
19,834.48
-
19,834.48
-
Drunk Driving Enforcement Fund
6,493.53
-
6,493.53
-
Municipal Alliance on Alcoholism and Drug Abuse
19,494.00
3,834.28
23,328.28
-
Body Armor Replacement Grant - CY
3,101.97
-
3,101.97
-
Information Assistance - Older American Act
6,500.00
-
6,500.00
-
Transportation Assistance- Older American Act
10,000.00
-
10,000.00
-
CDBG - County HUD Funds
63,854.00
-
63,854.00
-
Clean Communities
-
26,323.50
26,323.50
-
CARES ACT
-
73,256.63
73,256.63
-
Other Special Items:
Reserve for Sale of Municipal Assets - Cell Tower
600,000.00
-
600,000.00
-
Reserve for Payment of Debt Service
98,634.92
-
98,634.92
-
Total Miscellaneous Revenues
5,501,259.01
103,414.41
5,934,806.28
330,132.86
Receipts From Delinquent Taxes
419,000.00
-
600,695.74
181,695.74
Subtotal General Revenues
7,020,259.01
103,414.41
7,635,502.02
511,828.60
Amount to be Raised by Taxes for Support of
Municipal Budget:
Local Tax for Municipal Purposes Including
Reserve for Uncollected Taxes
13,391,306.58
-
13,580,262.85
188,956.27
Minimum Library Tax
513,606.00
-
513,606.00
-
Total Amount to be Raised by Taxes
for Support of Municipal Budget
13,904,912.58
-
14,093,868.85
188,956.27
Budget Totals
20,925,171.59
103,414.41
21,729,370.87
700,784.87
Nonbudget Revenues
-
-
227,180.30
227,180.30
Total
20,925,171.59
$
103,414.41
$
21,956,551.17
$
927,965.17
$
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
CURRENT FUND
The accompanying Notes to the Financial Statements are an integral part of this Statement.
10
EXHIBIT A-2
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
CURRENT FUND
Revenue From Collections
45,808,928.24
$
Allocation of Current Tax Collections:
School District
26,438,319.00
$
County Taxes
6,026,740.39
32,465,059.39
Balance for Support of Municipal Budget Appropriations
13,343,868.85
Add: Budget Appropriation - Reserve for Uncollected Taxes
750,000.00
Total Amount for Support of Municipal Budget Appropriation
14,093,868.85
$
Receipts From Delinquent Taxes:
Delinquent Tax Collections
600,695.74
$
Total Receipts From Delinquent Taxes
600,695.74
$
Miscellaneous Revenue Not Anticipated:
Receipts:
Duplicate Tax Bill Fees
1,210.00
$
Library Health Contributions
42,514.32
Sale of Municipal Assets
35,147.00
Property Tax Listing
290.00
Easement -Silverline
625.00
Outside Police Admin
19,057.50
Property Maintenance Admin Fee
6,849.23
Abandoned Property Registration
46,000.00
Landlord Registration
19,300.00
Containers
2,444.80
Other Miscellaneous Revenue
38,581.00
Senior Vet Admin Fee
1,982.79
JIF Reimbursement
13,178.66
Total
227,180.30
$
ANALYSIS OF NON-BUDGET REVENUE
ANALYSIS OF REALIZED REVENUES
The accompanying Notes to the Financial Statements are an integral part of this Statement.
11
EXHIBIT A-3
UNEXPENDED
BUDGET AFTER
BALANCE
BUDGET
MODIFICATION
EXPENDED
ENCUMBERED
RESERVED
CANCELED
OPERATIONS WITHIN "CAPS"
GENERAL GOVERNMENT
General Administration:
Salaries and Wages
127,500.00
$
127,500.00
$
119,999.88
$
-
$
2,500.12
$
5,000.00
$
Other Expenses
4,250.00
4,250.00
772.02
24.95
3,453.03
-
Mayor & Council
Salaries and Wages
12,000.00
12,000.00
8,533.18
-
3,466.82
-
Other Expenses
5,500.00
5,500.00
3,807.24
19.39
1,673.37
Municipal Clerk:
Salaries and Wages
163,000.00
163,000.00
138,815.55
-
4,184.45
20,000.00
Other Expenses
8,800.00
8,800.00
6,171.07
600.00
2,028.93
-
Postage for All Departments
Other Expenses
25,000.00
25,000.00
20,602.02
184.93
4,213.05
-
Printing and Advertising
-
Other Expenses
10,000.00
10,000.00
7,053.53
349.90
2,596.57
-
Financial Administration (Treasury):
-
Salaries and Wages
108,000.00
108,000.00
105,880.30
-
2,119.70
-
Other Expenses
66,000.00
66,000.00
62,057.45
1,815.19
2,127.36
-
Elections
Other Expenses
10,000.00
10,000.00
600.00
-
9,400.00
-
Annual Audit
Other Expenses
45,000.00
45,000.00
15,000.00
-
30,000.00
-
Tax Assessment Administration:
-
Salaries and Wages
27,000.00
27,000.00
26,910.00
-
90.00
-
Other Expenses
3,900.00
3,900.00
2,693.20
-
1,206.80
-
Revenue Administration (Tax Collection):
Salaries and Wages
63,700.00
63,700.00
63,652.97
47.03
-
Other Expenses
6,900.00
6,900.00
5,728.47
202.07
969.46
-
Legal Services
Other Expenses
160,000.00
160,000.00
151,274.25
8,725.75
-
Engineering Services:
Other Expenses
93,400.00
93,400.00
66,123.20
-
27,276.80
-
Animal Control & Board of Health:
Other Expenses
70,850.00
70,850.00
35,343.28
50.00
35,456.72
-
Computer Data Services
Other Expenses
250,350.00
250,350.00
215,818.72
7,197.68
27,333.60
Environmental Legal & Engineering Services and Costs
Other Expenses
11,000.00
11,000.00
3,043.50
7,956.50
-
OPERATIONS
APPROPRIATIONS
BOROUGH OF MIDDLESEX
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2020
PAID OR CHARGED
The accompanying Notes to the Financial Statements are an integral part of this Statement.
12
EXHIBIT A-3
UNEXPENDED
BUDGET AFTER
BALANCE
BUDGET
MODIFICATION
EXPENDED
ENCUMBERED
RESERVED
CANCELED
OPERATIONS
APPROPRIATIONS
BOROUGH OF MIDDLESEX
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2020
PAID OR CHARGED
LAND USE ADMINISTRATION
Code Enforcement
Salaries and Wages
74,000.00
59,000.00
52,228.98
-
6,771.02
-
Other Expenses
20,400.00
20,400.00
5,309.24
-
15,090.76
-
Purchasing Agent
Other Expenses
1,750.00
1,750.00
352.94
-
1,397.06
-
Joint Land Use Board
Salaries and Wages
17,000.00
17,000.00
3,250.00
-
3,750.00
10,000.00
Other Expenses
33,500.00
33,500.00
15,723.32
1,137.50
16,639.18
-
INSURANCE
Temporary Disability Insurance
30,000.00
30,000.00
26,440.35
-
3,559.65
-
Long-Term Disability Insurance
20,000.00
20,000.00
18,457.74
-
1,542.26
-
Liability Insurance
260,000.00
260,000.00
253,405.10
-
6,594.90
-
Workmen's Compensation
191,800.00
191,800.00
180,273.20
-
11,526.80
-
Employee Group Insurance
2,400,000.00
2,400,000.00
1,956,162.41
240.00
293,597.59
150,000.00
Flood Plain Management
Other Expenses
15,000.00
15,000.00
4,074.24
800.00
10,125.76
PUBLIC SAFETY
Police Department
Salaries and Wages
3,855,000.00
3,855,000.00
3,662,957.60
-
87,042.40
105,000.00
Other Expenses
139,500.00
139,500.00
33,789.51
102,193.34
3,517.15
Juvenile Conference Committee
Salaries and Wages
2,135.00
2,135.00
2,134.92
-
0.08
-
Other Expenses
250.00
250.00
-
-
250.00
-
Office of Emergency Management
Salaries and Wages
5,000.00
5,000.00
5,000.00
-
-
-
Other Expenses
8,300.00
8,300.00
4,477.44
3,355.24
467.32
-
Public Defender
Other Expenses
15,000.00
15,000.00
2,720.00
390.00
11,890.00
-
Aid to Volunteer Ambulance Companies (Rescue Squad)
20,000.00
20,000.00
20,000.00
-
-
-
Fire Department
Other Expenses
120,300.00
125,300.00
117,727.54
7,268.53
303.93
-
Fire Hydrant Fees
Other Expenses
215,000.00
215,000.00
195,477.14
-
19,522.86
-
Municipal Prosecutor's Office
Other Expenses
21,000.00
21,000.00
18,066.66
1,500.00
1,433.34
-
Municipal Court
Salaries and Wages
165,000.00
165,000.00
153,708.27
-
11,291.73
-
Other Expenses
8,700.00
8,700.00
3,948.42
130.34
4,621.24
-
The accompanying Notes to the Financial Statements are an integral part of this Statement.
13
EXHIBIT A-3
UNEXPENDED
BUDGET AFTER
BALANCE
BUDGET
MODIFICATION
EXPENDED
ENCUMBERED
RESERVED
CANCELED
OPERATIONS
APPROPRIATIONS
BOROUGH OF MIDDLESEX
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2020
PAID OR CHARGED
PUBLIC WORKS
Road Repairs and Maintenance
Salaries and Wages
855,000.00
847,000.00
770,582.67
-
36,417.33
40,000.00
Other Expenses
115,850.00
115,850.00
64,904.00
10,130.07
40,815.93
-
Shade Tree Commission
Salaries and Wages
2,688.00
2,688.00
2,557.88
-
130.12
-
Other Expenses
35,000.00
35,000.00
17,999.00
17,000.00
1.00
-
Solid Waste Collection
Salaries and Wages
152,000.00
152,000.00
118,396.94
-
18,603.06
15,000.00
Garbage and Trash Removal
Salaries and Wages
395,000.00
395,000.00
374,344.36
-
20,655.64
-
Other Expenses
40,500.00
40,500.00
28,783.52
407.57
11,308.91
-
Community Services Act (Condominium Costs)
Other Expenses
45,000.00
45,000.00
44,752.07
-
247.93
-
Buildings and Grounds
Salaries and Wages
24,000.00
24,000.00
23,747.36
-
252.64
-
Other Expenses
107,000.00
107,000.00
83,865.73
10,830.74
12,303.53
-
Rental of Rescue Squad Building
Other Expenses
7,200.00
7,200.00
7,200.00
-
-
-
HEALTH AND HUMAN SERVICES
Animal Control
Other Expenses
30,000.00
30,000.00
28,300.00
-
1,700.00
-
Senior Nutrition - Program Costs
Salaries and Wages
7,500.00
7,500.00
6,963.00
-
537.00
-
Title III Senior Medical Transportation - Program Costs
Salaries and Wages
11,500.00
11,500.00
4,050.00
-
2,450.00
5,000.00
Title III Information & Assistance - Program Costs
Salaries and Wages
38,500.00
38,500.00
38,366.90
-
133.10
-
PARKS AND RECREATION
Recreation Services and Programs
Salaries and Wages
118,000.00
118,000.00
89,400.37
-
8,599.63
20,000.00
Other Expenses
11,800.00
11,800.00
7,349.38
370.82
4,079.80
-
Parks and Playgrounds
Salaries and Wages
425,500.00
435,500.00
430,123.59
-
5,376.41
-
Other Expenses
54,350.00
54,350.00
33,088.01
9,882.80
11,379.19
-
Senior Citizens Bus Transportation
Salaries and Wages
20,000.00
20,000.00
-
-
-
20,000.00
Other Expenses
7,500.00
7,500.00
285.85
-
7,214.15
-
The accompanying Notes to the Financial Statements are an integral part of this Statement.
14
EXHIBIT A-3
UNEXPENDED
BUDGET AFTER
BALANCE
BUDGET
MODIFICATION
EXPENDED
ENCUMBERED
RESERVED
CANCELED
OPERATIONS
APPROPRIATIONS
BOROUGH OF MIDDLESEX
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2020
PAID OR CHARGED
Senior Citizens Coordinator
Salaries and Wages
53,000.00
53,000.00
52,577.97
-
422.03
-
Other Expenses
11,000.00
11,000.00
3,976.02
448.57
6,575.41
-
OTHER COMMON OPERATING FUNCTIONS -
UNCLASSIFIED
Accumulated Sick Leave Compensation
Salaries and Wages
35,000.00
35,000.00
34,677.83
-
322.17
-
Housing and Community Advisory Board
Salaries and Wages
500.00
500.00
500.00
-
-
-
Other Expenses
100.00
100.00
-
-
100.00
-
Construction Dept
Salaries and Wages
152,500.00
157,500.00
157,363.35
-
136.65
-
Other Expenses
5,200.00
5,200.00
2,980.85
19.52
2,199.63
-
Multi-Family Solid Waste Collection
Other Expenses
35,000.00
35,000.00
17,282.25
-
17,717.75
-
UTILITY EXPENSES AND BULK PURCHASES
Electricity
180,000.00
180,000.00
146,210.43
-
33,789.57
-
Street Lighting
170,000.00
170,000.00
144,975.90
-
25,024.10
-
Telephone (Excluding Equipment Acquis.)
70,000.00
70,000.00
59,182.16
1,796.97
9,020.87
-
Water
30,000.00
30,000.00
19,595.35
-
10,404.65
-
Gas (Natural or Propane)
30,000.00
30,000.00
20,109.45
-
9,890.55
-
Fuel Oil (Diesel Fuel)
75,000.00
75,000.00
37,547.58
-
37,452.42
-
Gasoline
80,000.00
80,000.00
65,211.66
-
14,788.34
-
Sewer Processing and Disposal
Salaries and Wages
86,000.00
89,000.00
83,152.07
-
5,847.93
-
Other Expenses
29,150.00
29,150.00
22,474.64
5,716.00
959.36
-
LANDFILL/SOLID WASTE DISPOSAL COSTS
Sanitary Landfill Fees
Other Expenses
375,000.00
375,000.00
339,097.33
12,788.27
23,114.40
-
CODE ENFORCEMENT AND ADMINISTRATION
Celebration of Public Events
Other Expenses
3,750.00
3,750.00
233.95
-
3,516.05
-
Total Operation Within "CAPS"
12,835,873.00
12,835,873.00
11,177,774.27
196,850.39
1,071,248.34
390,000.00
Contingent
25,000.00
25,000.00
3,120.00
2,802.50
19,077.50
-
The accompanying Notes to the Financial Statements are an integral part of this Statement.
15
EXHIBIT A-3
UNEXPENDED
BUDGET AFTER
BALANCE
BUDGET
MODIFICATION
EXPENDED
ENCUMBERED
RESERVED
CANCELED
OPERATIONS
APPROPRIATIONS
BOROUGH OF MIDDLESEX
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2020
PAID OR CHARGED
Detail:
Salaries and Wages
6,910,023.00
6,902,023.00
6,446,723.87
-
215,299.13
240,000.00
Other Expenses (Including Contingent)
5,950,850.00
5,958,850.00
4,734,170.40
199,652.89
875,026.71
150,000.00
Deferred Charges and Statutory Expenditures -
Municipal - Within "CAPS"
Statutory Expenditures:
Social Security System(O.A.S.I.)
320,000.00
320,000.00
299,113.71
-
20,886.29
-
Public Employees' Retirement System of NJ
425,000.00
425,000.00
414,192.69
-
10,807.31
-
Police & Fire Retirement System of NJ
953,817.00
953,817.00
953,817.00
-
-
-
Pension and Firemen's Widow
5,000.00
5,000.00
5,000.00
-
-
-
Defined Contibution Plan (DCRP)
12,000.00
12,000.00
10,121.59
-
1,878.41
-
Total Deferred Charges & Statutory Expenditures
Within "CAPS"
1,715,817.00
1,715,817.00
1,682,244.99
-
33,572.01
-
Judgements
56,062.00
56,062.00
56,061.96
-
-
0.04
Total General Appropriations for Municipal
Purposes Within "CAPS"
14,632,752.00
14,632,752.00
12,919,201.22
199,652.89
1,123,897.85
390,000.04
OPERATIONS EXCLUDED FROM "CAPS":
Maintenance of Free Public Library (NJSA-40:54-8)
Other Expenses
527,000.00
527,000.00
527,000.00
-
-
-
Middlesex County Utilities Authority Sewerage Treatment
Contractual
1,600,000.00
1,710,000.00
1,686,713.43
-
23,286.57
-
Piscataway Sewerage Authority - Share of Costs
475,000.00
365,000.00
323,513.21
-
41,486.79
-
Middlesex County Improvement Authority -
Curbside Recycling Collection
245,000.00
245,000.00
187,959.93
22,044.00
34,996.07
-
LOSAP
115,000.00
115,000.00
-
-
115,000.00
Stormwater Pollution Programs: NJDES/Stormwater Permit
Salaries and Wages
286,664.00
286,664.00
286,664.00
-
-
-
Other Expenses
6,000.00
6,000.00
3,621.68
-
2,378.32
-
The accompanying Notes to the Financial Statements are an integral part of this Statement.
16
EXHIBIT A-3
UNEXPENDED
BUDGET AFTER
BALANCE
BUDGET
MODIFICATION
EXPENDED
ENCUMBERED
RESERVED
CANCELED
OPERATIONS
APPROPRIATIONS
BOROUGH OF MIDDLESEX
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2020
PAID OR CHARGED
PUBLIC AND PRIVATE PROGRAMS
OFFSET BY REVENUES
Body Armor Replacement Grant - CY
3,101.97
3,101.97
3,101.97
-
-
-
Recycling Tonnage Grant
19,834.48
19,834.48
19,834.48
-
-
-
Drunk Driving Enforcement Fund
6,493.53
6,493.53
6,493.53
-
-
-
Clean Communities Grant
-
26,323.50
26,323.50
-
-
-
CDBG
63,854.00
63,854.00
63,854.00
-
-
-
CARES act
-
73,256.63
73,256.63
-
-
-
Municipal Alliance on Alcohol & Drug Abuse
19,494.00
19,494.00
19,494.00
-
-
-
Municipal Alliance on Alcohol & Drug Abuse-Match
4,873.50
4,873.50
4,873.50
N.J. Alcohol Education & Rehabilitation - Municipal Court
-
3,834.28
3,834.28
-
-
-
Older Americans Act - Information Assist
6,500.00
6,500.00
6,500.00
-
-
-
Older Americans Act - Transportation Assist
10,000.00
10,000.00
10,000.00
-
-
Total Public and Private Programs Offset By Revenues:
134,151.48
237,565.89
237,565.89
-
-
-
Total Operations Excluded from "CAPS"
3,388,815.48
3,492,229.89
3,253,038.14
22,044.00
217,147.75
-
Detail:
Salaries and Wages
286,664.00
299,664.00
299,664.00
6,500.00
-
-
Other Expenses
3,102,151.48
3,192,565.89
2,953,374.14
15,544.00
217,147.75
-
Capital Improvements - Excluded from "CAPS:
Capital Improvement Fund
80,000.00
80,000.00
80,000.00
-
-
-
Total Capital Improvements Excluded from
"CAPS"
80,000.00
80,000.00
80,000.00
-
-
-
Municipal Debt Service - Excluded from "CAPS":
Payment of Bond Principal
1,026,475.00
1,026,475.00
1,026,472.00
-
-
3.00
Interest on Bonds
179,850.00
179,850.00
179,847.22
-
-
2.78
Loan Payment for Principal and Interest
118,847.39
118,847.39
118,517.25
-
-
330.14
Loan Payment for Principal and Interest
12,997.00
12,997.00
12,996.30
-
-
0.70
MCIA Loan
487,175.45
487,175.45
487,175.45
-
-
-
Fire Truck
148,014.27
148,014.27
148,014.27
-
-
-
Environmental Infrastructure Loan
100,245.00
100,245.00
98,536.54
-
-
1,708.46
Total Municipal Debt Service Excluded from
"CAPS"
2,073,604.11
2,073,604.11
2,071,559.03
-
-
2,045.08
The accompanying Notes to the Financial Statements are an integral part of this Statement.
17
EXHIBIT A-3
UNEXPENDED
BUDGET AFTER
BALANCE
BUDGET
MODIFICATION
EXPENDED
ENCUMBERED
RESERVED
CANCELED
OPERATIONS
APPROPRIATIONS
BOROUGH OF MIDDLESEX
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2020
PAID OR CHARGED
Total General Appropriations for Municipal Purposes
Excluded from "CAPS"
5,542,419.59
5,645,834.00
5,404,597.17
22,044.00
217,147.75
2,045.08
Subtotal General Appropriations
20,175,171.59
20,278,586.00
18,323,798.39
221,696.89
1,341,045.60
392,045.12
Reserve For Uncollected Taxes
750,000.00
750,000.00
750,000.00
-
-
-
Total General Appropriations
20,925,171.59
$
21,028,586.00
$
19,073,798.39
$
221,696.89
$
1,341,045.60
$
392,045.12
$
Budget
20,925,171.59
$
20,925,171.59
$
Appropriation by 40A:4-87
103,414.41
Total
21,028,586.00
$
-
Reserve for Uncollected Taxes
750,000.00
$
Appropriated Reserves for
Federal & State Grants
237,565.89
Cash Disbursements
18,086,232.50
Total
19,073,798.39
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
18
EXHIBIT B
2020
2019
Assessment Trust Fund:
Cash and Investments - Treasurer
B-2
11,889.07
$
25,990.14
$
Assessment Liens Receivable
B-3
1,470.00
1,470.00
Total Assessment Trust Fund
13,359.07
27,460.14
Animal Control Fund:
Cash
B-2
24,938.14
54,617.00
Total Animal Control Fund
24,938.14
54,617.00
Trust-Other Fund:
Cash and Investments - Treasurer
B-2
706,861.00
426,981.86
Due from Current Fund
A
97,248.68
97,248.68
Due from General Capital Fund
C
522,787.01
522,787.01
Total Trust-Other Fund
1,326,896.69
1,047,017.55
Escrow Trust Fund:
Cash and Investments - Treasurer
B-2
1,018,902.21
624,722.97
Total Escrow Trust Fund
1,018,902.21
624,722.97
Payroll Fund:
Cash and Investments - Treasurer
B-2
167,306.02
142,587.88
Total Payroll Trust Fund
167,306.02
142,587.88
Public Assistance Trust Fund
Cash and Investments - Treasurer
B-2
9,836.41
9,841.34
Total Public Assistance Trust Fund
9,836.41
9,841.34
Total Assets
2,561,238.54
$
1,906,246.88
$
ASSETS
FUND BALANCE - REGULATORY BASIS
DECEMBER 31, 2020 AND 2019
BOROUGH OF MIDDLESEX
TRUST FUND
STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND
The accompanying Notes to the Financial Statements are an integral part of this Statement.
19
EXHIBIT B
2020
2019
FUND BALANCE - REGULATORY BASIS
DECEMBER 31, 2020 AND 2019
BOROUGH OF MIDDLESEX
TRUST FUND
STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND
LIABILITIES, RESERVES & FUND BALANCE
Assessment Trust Fund
Due to General Capital Fund
B-6
7,164.08
$
7,164.08
$
Due to Current Fund
B-7
629.22
14,730.29
Fund Balance
B-1
5,565.77
5,565.77
Total Assessment Trust Fund
13,359.07
27,460.14
Animal Control Fund:
Due to State of New Jersey
B-5
1.20
1.20
Due to Current Fund
B
12,888.48
41,351.22
Reserve for Animal Control Expenditures
B-4
12,048.46
13,264.58
Total Animal Control Fund
24,938.14
54,617.00
Trust-Other Fund:
Reserve for Unemployment Insurance
B-8
192,617.04
194,846.61
Reserve for Various Deposits
B-8
1,134,279.65
852,170.94
Total Trust-Other Fund
1,326,896.69
1,047,017.55
Escrow Trust Fund:
Developers' Escrow - Water & Soil
B-9
20,062.00
20,062.00
Developers' Escrow Funds
B-9
998,840.21
604,660.97
Total Escrow Trust Fund
1,018,902.21
624,722.97
Payroll Fund:
Payroll Deductions Payable
B-11
167,306.02
142,587.88
Total Payroll Trust Fund
167,306.02
142,587.88
Public Assistance Trust Fund
Reserve for Public Assistance
B-10
9,836.41
9,841.34
Total Public Assistance Trust Fund
9,836.41
9,841.34
Total Liabilities, Reserves & Fund Balance
2,561,238.54
$
1,906,246.88
$
The accompanying Notes to the Financial Statements are an integral part of this Statement.
20
EXHIBIT B-1
Balance December 31, 2019
5,565.77
$
Balance, December 31, 2020
5,565.77
$
BOROUGH OF MIDDLESEX
TRUST ASSESSMENT FUND
STATEMENT OF FUND BALANCE - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2020
The accompanying Notes to the Financial Statements are an integral part of this Statement.
21
EXHIBIT C
REFERENCE
2020
2019
Cash and Investments - Treasurer
C-2
1,726,093.92
$
2,194,983.85
$
Grants - In - Aid, Loans and Other Receivable
C-7
2,912,642.77
2,610,587.02
Interfunds Receivable
C-10
7,164.08
7,164.08
Deferred Charges to Future Taxation:
Funded
C-4
6,235,729.51
8,027,076.47
Unfunded
C-5
10,802,986.64
9,379,247.14
Total Assets
21,684,616.92
$
22,219,058.56
$
General Serial Bonds
C-12
5,244,500.00
$
6,493,000.00
$
Capital Leases Payable
C-11
640,000.00
1,083,822.55
NJ Infrastructure Trust Loan
C-14
898,891.00
898,891.00
Loans Payable - N.J. Green Trust Fund - 1989
C-16
31,538.30
43,720.79
Loans Payable - N.J. Infrastructure
C-13
319,691.21
406,533.13
Bond Anticipation Notes
C-15
6,550,524.00
5,282,106.00
Reserve for Encumbrances Payable
C-8
1,270,876.06
1,897,315.68
Interfunds Payable
C-10
645,196.93
786,987.42
Improvement Authorizations
Funded
C-8
773,466.70
2,220,084.56
Unfunded
C-8
4,307,548.61
2,306,892.44
Reserve For:
Capital Improvement Fund
C-6
23,287.43
7,347.93
Grants and Loans Receivable
C-9
559,772.11
688,348.49
Insurance Refund
C-9
4,838.08
4,838.08
To Pay Debt Service
C-9
-
98,634.92
Fund Balance
C-1
414,486.49
535.57
Total Liabilities, Reserves & Fund Balance
21,684,616.92
$
22,219,058.56
$
There were bonds authorized but not issued on December 31, 2020 in the amount of $3,369,421.05 and on
December 31, 2019 of $3,340,196.90.
LIABILITIES, RESERVES & FUND BALANCE
ASSETS
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
FUND BALANCE - REGULATORY BASIS
DECEMBER 31, 2020 AND 2019
STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND
The accompanying Notes to the Financial Statements are an integral part of this Statement.
22
EXHIBIT C-1
Balance December 31, 2019
535.57
$
Increased by Receipts:
Cancellation of Ordinances
413,950.92
Balance, December 31, 2020
414,486.49
$
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
STATEMENT OF FUND BALANCE - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2020
The accompanying Notes to the Financial Statements are an integral part of this Statement.
23
EXHIBIT D
REFERENCE
2020
2019
Operating Fund:
Cash and Investments - Treasurer
D-5
161,999.92
$
266,176.85
$
Cash - Snack Bar Fund
D-5
3,008.51
3,013.15
Due from Swimming Pool Capital Fund
D-11
94,320.11
94,320.11
Total Operating Fund
259,328.54
363,510.11
Capital Fund:
Fixed Capital
D-7
666,291.56
666,291.56
Fixed Capital Authorized and Uncompleted
D-8
1,650,000.00
1,650,000.00
Total Capital Fund
2,316,291.56
2,316,291.56
Total Assets
2,575,620.10
$
2,679,801.67
$
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY FUND
FUND BALANCE - REGULATORY BASIS
DECEMBER 31, 2020 AND 2019
STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND
ASSETS
The accompanying Notes to the Financial Statements are an integral part of this Statement.
24
EXHIBIT D
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY FUND
FUND BALANCE - REGULATORY BASIS
DECEMBER 31, 2020 AND 2019
STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND
REFERENCE
2020
2019
Operating Fund:
Appropriation Reserves
D-4
114,723.85
$
42,710.98
$
Reserve for Encumbrances
D-4
1,100.44
12,065.58
Accounts Payable
D-9
-
34,693.93
Due to Current Fund
D-11
114,526.13
114,526.13
Accrued Interest on Bonds
D-17
6,706.56
7,820.31
Subtotal Swimming Pool Fund
237,056.98
211,816.93
Fund Balance
D-1
22,271.56
151,693.18
Total Operating Fund
259,328.54
363,510.11
Capital Fund:
General Serial Bonds
D-18
663,500.00
785,000.00
Improvement Authorizations:
Funded
D-16
51,660.79
51,660.79
Unfunded
D-16
93,670.00
93,670.00
Capital Improvement Fund
D-13
7,730.10
7,730.10
Due to Swimming Pool Operating Fund
D-15
94,320.11
94,320.11
Reserve for:
Amortization
D-12
1,237,791.56
1,116,291.56
Deferred Amortization
D-14
165,000.00
165,000.00
Fund Balance
D-2
2,619.00
2,619.00
Total Capital Fund
2,316,291.56
2,316,291.56
Total Liabilities, Reserves & Fund Balance
2,575,620.10
$
2,679,801.67
$
There were bonds and notes authorized but not issued on December 31, 2020 and 2019 of $250,000.00
LIABILITIES RESERVES & FUND BALANCE
The accompanying Notes to the Financial Statements are an integral part of this Statement.
25
EXHIBIT D-1
Reference
2020
2019
Revenue & Other Income Realized:
Fund Balance Utilized
D-1, D-3
75,028.00
$
78,628.00
$
Fees - Membership
D-3
144,264.25
273,291.00
Miscellaneous
D-3
51,906.29
128,035.26
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
D-10
43,628.16
68,264.72
Cancellation of Accrued Interest on Bonds
D-3
1,113.75
-
Cancellation of Accounts Payable
D-3
34,693.93
-
Total Revenue
350,634.38
548,218.98
Expenditures:
Budget and Emergency Appropriations
Operating
D-4
405,028.00
504,430.00
Total Expenditures
405,028.00
504,430.00
Excess/(Deficit) in Revenue
(54,393.62)
43,788.98
Fund Balance January 1
151,693.18
186,532.20
Decreased by: Utilization as Anticipated Revenue
D-4
75,028.00
78,628.00
Balance December 31
D
22,271.56
$
151,693.18
$
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY FUND
STATEMENTS OF OPERATIONS AND CHANGE IN
FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019
OPERATING FUND BALANCE - REGULATORY BASIS
The accompanying Notes to the Financial Statements are an integral part of this Statement.
26
EXHIBIT D-2
Balance, December 31, 2019
2,619.00
$
Balance, December 31, 2020
2,619.00
$
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY CAPITAL FUND
STATEMENT OF FUND BALANCE - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2020
The accompanying Notes to the Financial Statements are an integral part of this Statement.
27
EXHIBIT D-3
ANTICIPATED
EXCESS OR
BUDGET
REALIZED
(DEFICIT)
Fund Balance Anticipated
75,028.00
$
75,028.00
$
-
$
Fees - Membership
230,000.00
144,264.25
(85,735.75)
Miscellaneous
100,000.00
51,906.29
(48,093.71)
Total Revenues
405,028.00
$
271,198.54
$
(133,829.46)
$
Miscellaneous Receipts:
Interest
1,113.27
$
Miscellaneous Revenues
50,793.02
51,906.29
$
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2020
ANALYSIS OF MISCELLANEOUS REVENUES
SWIMMING POOL UTILITY OPERATING FUND
BOROUGH OF MIDDLESEX
The accompanying Notes to the Financial Statements are an integral part of this Statement.
28
EXHIBIT D-4
BUDGET
AFTER
BUDGET
MODIFICATION
PAID
ENCUMBRANCES
RESERVED
Operating:
Salaries & Wages
165,000.00
$
165,000.00
$
135,364.47
$
-
$
29,635.53
$
Other Expenses
150,000.00
150,000.00
64,950.37
1,100.44
83,949.19
Total Operating
315,000.00
315,000.00
200,314.84
1,100.44
113,584.72
Debt Service:
Payment of Bond Principal
78,528.00
78,528.00
78,528.00
-
-
Total Debt Service
78,528.00
78,528.00
78,528.00
-
-
Statutory Expenditures:
Social Security System (O.A.S.I.)
11,500.00
11,500.00
$
10,360.87
-
1,139.13
Total Statutory Expenditures
11,500.00
11,500.00
10,360.87
-
1,139.13
Total Expenditures
405,028.00
$
405,028.00
$
289,203.71
$
1,100.44
$
114,723.85
$
Cash Disbursed
289,203.71
$
Total
289,203.71
$
PAID OR CHARGED
APPROPRIATIONS
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY OPERATING FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2020
The accompanying Notes to the Financial Statements are an integral part of this Statement.
29
EXHIBIT E
2020
2019
General Fixed Assets:
Land
5,864,700.00
$
5,864,700.00
$
Buildings
6,533,000.00
6,533,000.00
Machinery and Equipment
10,114,287.23
9,444,013.00
Total Assets
22,511,987.23
$
21,841,713.00
$
Investment in Governmental Fixed Assets
22,511,987.23
$
21,841,713.00
$
BOROUGH OF MIDDLESEX
STATEMENT OF GOVERNMENTAL FIXED ASSETS
BALANCE SHEET - REGULATORY BASIS
DECEMBER 31, 2020 AND 2019
MIDDLESEX COUNTY, NEW JERSEY
The accompanying Notes to the Financial Statements are an integral part of this Statement.
30
MIDDLESEX, BOROUGH OF
NOTES TO FINANCIAL STATEMENTS
************
COUNTY OF MIDDLESEX
FOR THE YEAR ENDED DECEMBER 31, 2020
31
This page intentionally left blank.
32
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 1. Summary of Significant Accounting Policies
Description of Financial Reporting Entity
The Borough of Middlesex, County of Middlesex, New Jersey (hereafter referred to as the “Borough")
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.
Component Units - GASB Statement 14, as amended by GASB Statements 39, 61, 80, 90 and 97,
establishes criteria to be used in determining the component units, which should be included in the
financial statements of a primary government. The financial statements of the Borough are not presented
in accordance with GAAP (as discussed below). Therefore, the Borough had no component units as
defined by GASB Statement No. 14, as amended by GASB Statements 39, 61, 80, 90 and 97.
Basis of Accounting, Measurement Focus and Basis of Presentation - The financial statements of the
Borough contain all funds and account groups in accordance with the “Requirements of Audit” as
promulgated by the State of New Jersey, Department of Community Affairs, Division of Local
Government Services. The principles and practices established by the Requirements of Audit 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. Generally, the
financial statements are presented using the flow of current financial resources measurement focus and
modified accrual basis of accounting with minor exceptions as mandated by these “Requirements”. In
addition, the prescribed accounting principles previously referred to differ in certain respects from
accounting principles generally accepted in the United State of America applicable to local government
units. The more significant differences are explained further in this note.
In accordance with the “Requirements”, the Borough accounts for its financial transactions through the
use of separate funds, which are described as follows:
Current Fund – This fund accounts for revenues and expenditures for governmental operations
of a general nature, including federal and state grant funds.
Trust Funds – These funds account for receipts, custodianship and disbursement of funds in
accordance with the purpose for which each reserve was created. Pursuant to the provisions of
N.J.S.A. 40A:4-39, the financial transactions of the following funds and accounts are also
reported within the Trust Fund:
General Capital Fund – This fund accounts for receipt and disbursement of funds for the
acquisition of general capital facilities, other than those acquired in the Current Fund.
Swimming Pool Operating and Capital Funds – This fund accounts for the operations and
acquisition of capital facilities of the municipally owned Swimming Pool.
General Fixed Asset Account Group – The Fixed Asset Account Group of accounts is utilized
to account for property, land, buildings, and equipment that have been acquired by other funds of
the Borough.
33
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 1. Summary of Significant Accounting Policies (continued)
Budgets and Budgetary Accounting - The Borough must adopt an annual budget for its Current and
Swimming Pool Operating Fund in accordance with N.J.S.A.40A:4 et seq. N.J.S.A.40A:4-5 requires the
governing body to introduce and approve the annual municipal budget no later than February 10th of each
year. At introduction, the governing body must fix the time and place for a public hearing on the budget
and must advertise the time and place at least ten days prior to the hearing in a newspaper published and
circulating in the municipality. The public hearing must not be held less than twenty-eight days after the
date the budget was introduced. After the hearing has been held, the governing body may, by majority
vote, adopt the budget or may amend the budget in accordance with N.J.S.A.40A:4-9. Amendments to
adopted budgets, if any are detailed in the statements of revenues and expenditures.
An extension of the statutory dates for introduction, approval and adoption of the municipal budget may
be granted by the Director of Local Government Services, with the permission of the Local Finance
Board. Budgets are adopted on the same basis of accounting utilized for the preparation of the Borough’s
financial statements. Once a budget is approved it may be amended after November 1, by a resolution
adopted by the governing body.
Cash, Cash Equivalents and Investments - Cash and Cash equivalents include petty cash, change funds
and cash on deposit with public depositories. All certificates of deposit are recorded as cash regardless of
the date of maturity. Under GAAP, investments are reported at fair value but under regulatory basis of
accounting, investments are stated at cost. Therefore unrealized gains or losses on investments have not
been recorded.
New Jersey municipal units are required by N.J.S.A.40A:5-14 to deposit public funds in a bank or trust
company having its place of business in the State of New Jersey and organized under the laws of the
United States or of the State of New Jersey or in the New Jersey Cash Management Fund. N.J.S.A.40A:5-
15.1 provides a list of investments, which may be purchased by New Jersey municipal units. In addition,
other State statutes permit investments in obligations issued by local utilities and other state agencies.
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 Governmental Unit Deposit Protection Act, which was
enacted in 1970 to protect governmental units from a loss of funds on deposit with a failed banking
institution in New Jersey. Public depositories include State or federally chartered banks savings banks or
associations located in or having a branch office in the State of New Jersey, the deposits of which are
federally insured. All public depositories must pledge collateral, having a market value at least equal to
five percent of the average daily balance of collected public funds, to secure the deposits of Governmental
Units. If a public depository fails, the collateral it has pledged, plus the collateral of all other public
depositories, is available to pay the amount of their deposits to the Governmental Units.
The cash management plan adopted by the Borough requires it to deposit funds in public depositories
protected from loss under the provisions of the Act.
Interfunds - Interfund receivables and payables that arise from transactions between funds are recorded
by all funds affected by such transactions in the period in which the transaction is executed. Interfund
receivables in the Current Fund are recorded with offsetting reserves, which are created by charges to
operations. Income is recognized in the year the receivables are liquidated. Interfund receivables in the
other funds are not offset by reserves.
34
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 1. Summary of Significant Accounting Policies (continued)
General Fixed Assets – Accounting for governmental fixed assets, as required by N.J.A.C.5:30-5.6,
differs in certain respects from accounting principles generally accepted in the United States of America.
In accordance with the regulations, all local units, including municipalities, must maintain a general fixed
assets reporting system that establishes and maintains a physical inventory of nonexpendable, tangible
property as defined and limited by the U.S. Office of Management and Budget Circular A-87 (Attachment
B, Section 19), except that the useful life of such property is at least five years. Property and equipment
purchased by the Current Fund and the General Capital Fund are recorded as expenditures at the time of
purchase and are not capitalized. Contributions in aid of construction are not capitalized. Generally, assets
are valued at historical cost; however, assets acquired prior to December 31, 1985 are valued at actual
historical cost or estimated historical cost. In some instances, assets are valued at the assessed valuation of
the property at the time of acquisition, which approximates fair value. No depreciation of general fixed
assets is recorded. Donated general fixed assets are recorded at their acquisition value as of the date of
the transaction. Interest costs relative to the acquisition of general fixed assets are recorded as
expenditures when paid. Public domain ("infrastructure") general fixed assets consisting of certain
improvements such as roads, bridges, curbs and gutters, streets and sidewalks and drainage systems are
not capitalized. Expenditures for construction in progress are recorded in the capital funds until such time
as the construction is completed and put into operation. The Borough is required to maintain a subsidiary
ledger detailing fixed assets records to control additions, retirements, and transfers of fixed assets. In
addition, a statement of general fixed assets, reflecting the activity for the year, must be included in the
Borough's basic financial statements.
The regulations require that general fixed assets, whether constructed or acquired through purchase, grant
or gift be included in the aforementioned inventory. In addition, property management standards must be
maintained that includes accurate records indicating asset description, source, ownership, acquisition cost
and date, the percentage of federal participation (if any), and the location, use, and condition of the asset.
Periodically, physical inventories must be taken and reconciled with these records. All fixed assets must
be adequately controlled to safeguard against loss, damage, or theft.
Utility Fixed Assets – Property and equipment purchases by a utility fund are recorded in the utility
capital account at cost and are adjusted for disposition and abandonment. The amounts shown do not
represent replacement cost or current value. Contributions in aid of construction are not capitalized. The
reserve for amortization and deferred reserve for amortization 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. the cost of the utility fixed assets reduced by the outstanding balances
of bonds, loans, notes, or other borrowings that are attributable to the acquisition, construction or
improvement of those assets.
Foreclosed property – Foreclosed Property or “Property Acquired for Taxes” is recorded in the Current
Fund at the assessed valuation when such property was acquired and is fully reserved. Ordinarily it is the
intention of the Borough to resell foreclosed property in order to recover all or a portion of the delinquent
taxes or assessments and to return the property to a taxpaying basis. For this reason the value of
foreclosed property has not been included in the General Fixed Assets Account Group. If such property
is converted to a municipal use, it will be recorded in the General Fixed Assets Account Group.
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.
35
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 1. Summary of Significant Accounting Policies (continued)
Deferred Charges – The recognition of certain expenditures is deferred to future periods. These
expenditures or deferred charges are generally overexpenditures of legally adopted budget appropriations
or emergency appropriations made in accordance with N.J.S.A.40A:4-46 et seq. Deferred charges are
subsequently raised as items of appropriation in budgets of succeeding years.
Fund Balance – Fund Balance included in the Current and Swimming Pool Fund represent the amount
available for anticipation as revenue in future year’s budgets, with certain restrictions.
Revenues – are recorded when received in cash except for certain amounts, which are due from other
governmental units. Revenue from Federal and State grants are realized when anticipated as such in the
Borough’s budget. Receivables for property taxes are recorded with offsetting reserves on the statement
of assets, liabilities, reserves and fund balance of the Borough’s Current Fund; accordingly, such amounts
are not recorded as revenue until collected. Other amounts that are due the Borough, which are
susceptible to accrual are also recorded as receivables with offsetting reserves and recorded as revenues
when received.
Swimming Pool Revenues – Swimming pool utility revenues are for charges to residents for membership
fees. Revenues from these sources are recognized on a cash basis. Receivables that are susceptible to
accrual are recorded with offsetting reserves on the balance sheet of the Borough’s utility operating fund.
Property Tax Revenues – are collected in quarterly installments due February 1, May 1, August 1 and
November 1. The amount of tax levied includes not only the amount required in support of the Borough’s
annual budget, but also the amounts required in support of the budgets of the County of Middlesex, and
School District. Unpaid property taxes are subject to tax sale in accordance with statutes.
County Taxes – The municipality is responsible for levying, collecting and remitting County taxes for
the County of Middlesex. Operations is charged for the amount due the County for the year, based upon
the ratables required to be certified to the County Board of Taxation by January 10th of the current year.
In addition, operations is charged for the County share of Added and Omitted Taxes certified to the
County Board of Taxation by October 10th of the current year and due to be paid to the County by
February 15th of the following year.
School Taxes – The municipality is responsible for levying, collecting and remitting school taxes for the
Middlesex School District. Operations are charged for the full amount required to be raised from taxation
to operate the local school district July 1 to June 30.
Deferred School Taxes – School taxes raised in advance in the Current Fund for a school fiscal year
(July I to June 30) which remain unpaid at December 31 of the calendar year levied may be deferred to
fund balance to the extent of not more than 50% of the annual levy providing no requisition has been
made by the school district for such amount.
Reserve for Uncollected Taxes – The inclusion of the “Reserve for Uncollected Taxes” appropriation in
the Borough’s annual budget protects the Borough from taxes not paid currently. The Reserve, the
minimum amount of which is determined on the percentage of collections experienced in the immediate
preceding year, with certain exceptions, is required to provide assurance that cash collected in the current
year will provide sufficient cash flow to meet expected obligations.
36
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 1. Summary of Significant Accounting Policies (continued)
Expenditures – are recorded on the “budgetary” basis of accounting. Generally, expenditures are
recorded when an amount is encumbered through the issuance of a numerically controlled purchase order
or when a contract is executed as required by Technical Accounting Directive No. 85-1. When an
expenditure is paid, the amount encumbered is simultaneously liquidated in its original amount.
Encumbrances are offset by an account entitled reserve for encumbrances. The reserve is classified as a
cash liability under New Jersey municipal accounting. At December 31, this reserve represents the
portion of appropriation reserves that has been encumbered and is subject to the same statutory provisions
as appropriation reserves. Appropriations for interest payments on outstanding general capital bonds and
notes are provided on the cash basis. Appropriations for interest payments on outstanding utility capital
bonds and notes are provided on the accrual basis.
Appropriation Reserves – Appropriation reserves covering unexpended appropriation balances are
automatically created at year-end and recorded as liabilities, except for amounts, which may be cancelled
by the governing body. Appropriation reserves and reserve for encumbrances at current year end are
available until December 31st of the succeeding year to meet specific claims, commitments or contracts
incurred during the preceding year. Any unspent balances at this time are lapsed appropriation reserves
and recorded as income.
Long-Term Debt - Long-Term Debt relative to the acquisition of capital assets, is recorded as a liability
in the General and Utility Capital Fund. Where an improvement is a “local improvement”, i.e. assessable
upon completion, long-term debt associated with that portion of the cost of the improvement to be funded
by assessments is transferred to the Trust Fund upon the confirmation of the assessments or when the
improvement is fully and permanently funded.
Compensated Absences – Expenditures relating to obligations for unused vested accumulated vacation
and sick leave are not recorded until paid; however, municipalities may establish and budget reserve
funds subject to NJSA 40A:4-39 for the future payment of compensated absences.
Recent Accounting Pronouncements – The Governmental Accounting Standards Board (GASB) is the
accepted standard-setting body for establishing governmental accounting and financial reporting
principles. GASB adopts accounting statements to be used by governmental units when reporting
financial position and results of operations in accordance with accounting principles generally accepted in
the United States of America (GAAP). The municipalities in the State of New Jersey do not prepare their
financial statements in accordance with GAAP and thus do not comply with all of the GASB
pronouncements. The following GASB pronouncement effective for the current year did have a
significant impact on the Borough’s financial statements.
The following GASB Statements became effective for the fiscal year ended December 31, 2020:
Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. This Statement
provides temporary relief to governments and other stakeholders in light of the COVID-19 pandemic.
That objective is accomplished by postponing the effective dates of certain provisions in Statements and
Implementation Guides that first became effective or are scheduled to become effective for periods
beginning after June 15, 2018, and later.
Statement No. 83, Certain Asset Retirement Obligations. This Statement establishes criteria for
determining the timing and pattern of recognition of a liability and a corresponding deferred outflow of
resources for asset retirement obligations.
37
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 1. Summary of Significant Accounting Policies (continued):
Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct
Placements. This Statement requires that additional essential information related to debt be disclosed in
notes to financial statements, including unused lines of credit; assets pledged as collateral for the debt;
and terms specified in debt agreements related to significant events of default with finance-related
consequences, significant termination events with finance-related consequences, and significant
subjective acceleration clauses.
Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for
Internal Revenue Code Section 457 Deferred Compensation Plans – an amendment of GASB Statements
No. 14 and No. 84, and a supersession of GASB Statement No. 32. Requirements of this pronouncement
related to section 1, paragraph 4 are effective immediately. All other requirements will be effective for
reporting periods beginning June 15, 2021. Management has determined the implementation of certain
provisions within this Statement did not have a significant impact on the Borough’s financial statements.
Management has determined that the implementation of these Statements did not have a significant
impact on the Borough’s financial statements.
Accounting Pronouncements Effective in Future Reporting Periods
Statement No. 87, Leases. The requirements of this Statement are effective for fiscal years beginning after
June 15, 2021.
Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. The
requirements of this Statement are effective for reporting periods beginning after December 15, 2020.
Statement No. 93, Replacement of Interbank Offered Rates. The requirements of this Statement, except
for paragraphs 11b, 13, and 14 are effective for reporting periods beginning after June 15, 2020. The
requirement in paragraph 11b is effective for reporting periods ending after December 31, 2021. The
requirements in paragraphs 13 and 14 are effective for fiscal years periods beginning after June 15, 2021.
Note 2. Deposits and Investments
The Borough is governed by the deposit and investment limitations of New Jersey state law.
Deposits
Custodial Credit Risk Related to Deposits - Custodial credit risk is the risk that, in the event of a bank
failure, the Borough’s deposits may not be returned. Although the Borough does not have a formal policy
regarding custodial credit risk, NJSA 17:9-41 et seq. requires that the governmental units shall deposit
public funds in public depositories protected from loss under the provisions of the Governmental Unit
Deposit Protection Act (GUDPA). GUDPA is a supplemental insurance program set forth by the New
Jersey Legislature to protect the deposits of local governmental agencies. The program is administered by
the Commissioner of the New Jersey Department of Banking and Insurance. Under the Act, the first
$250,000 of governmental deposits in each insured depository is protected by FDIC. Public funds owned
by the Borough in excess of FDIC insured amounts are protected by GUDPA. However, GUDPA does
not protect intermingled trust funds such as salary withholdings, bail funds or funds that may pass to the
Borough relative to the happening of a future condition. Such funds are shown as Uninsured and
Uncollateralized in the schedule below.
38
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 2. Deposits and Investments (Continued)
As of December 31, 2020, the Borough’s bank balance of $9,112,020.05 was insured or collateralized as
follows:
Insured under FDIC and GUDPA
8,541,232.19
$
NJ Cash Management Fund
138,226.46
Uninsured and Uncollateralized
432,561.40
9,112,020.05
$
Investments
The Borough had no investments as of December 31, 2020.
Note 3. Property Taxes
The following is a three-year comparison of certain statistical information relative to property taxes and
property tax collections for the current and previous two years.
Comparison Schedule of Tax Rates
2020
2019
2018
Tax Rate
9.422
$
9.167
$
8.889
$
Apportionment of Tax Rate:
Municipal
2.721
2.575
2.503
Municipal Library
0.104
0.105
0.099
County General
1.130
1.129
1.103
County Open Space
0.095
0.095
0.091
Local School
5.372
5.263
5.093
Year
Amount
2020
492,104,366.00
$
2019
493,000,675.00
2018
495,020,711.00
Assessed Valuation
39
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 3. Property Taxes (Continued):
Comparison of Tax Levies and Collections
Cash
Percentage Of
Year
Tax Levy
Collections
Collection
2020
46,402,353.48
$
45,808,928.24
$
98.72%
2019
45,326,701.46
44,609,463.47
98.41%
2018
44,114,362.11
43,420,174.67
98.42%
Delinquent Taxes and Tax Title Liens
Tax Title
Delinquent
Total
Percentage Of
Year
Liens
Taxes
Delinquent
Tax Levy
2020
415,884.70
$
553,291.95
$
969,176.65
$
2.09%
2019
419,307.69
633,345.83
1,052,653.52
2.32%
2018
360,646.06
650,184.50
1,010,830.56
2.29%
Note: 4: Property Acquired By Tax Title Lien Liquidation
The value of properties acquired by liquidation of tax title liens based on the last assessed valuation of
such properties as of December 31, was as follows:
Year
Amount
2020
1,423,139.00
$
2019
1,423,139.00
2018
1,423,139.00
40
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 5. Fund Balances Appropriated
The following schedule details the amount of fund balances available at the end of the current year and
two previous years and the amounts utilized in the subsequent year’s budgets:
Utilized in
Percentage
Balance
Budget of
of Fund
Year
December 31,
Succeeding Year
Balance Used
Current Fund:
2020
2,328,836.56
$
1,400,000.00
$
60.12%
2019
1,497,915.47
1,100,000.00
73.44%
2018
2,586,086.89
2,200,000.00
85.07%
Swimming Pool Operating Fund:
2020
22,271.56
$
21,157.81
$
95.00%
2019
151,693.18
75,028.00
49.46%
2018
186,532.20
78,628.00
42.15%
Note 6 Disaggregated Receivable and Payable Balances
There are no significant components of receivable and payable balances reported in the financial
statements.
Note 7. Interfund Receivables, Payables and Transfers
The following interfund balances were recorded in the various statements of assets liabilities, reserves and
fund balances at December 31, 2020:
Interfund
Interfund
Fund
Receivable
Payable
Current Fund
297,781.62
$
97,248.68
$
State and Federal Grant Fund
23,775.00
71,102.87
Animal Control Trust
-
12,888.48
Trust Other Fund
620,035.69
-
Assessment Trust
-
7,793.30
Capital Fund
7,164.08
645,196.93
Swim Utility Operating Fund
94,320.11
114,526.13
Swim Utility Capital Fund
-
94,320.11
1,043,076.50
$
1,043,076.50
$
41
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 7. Interfund Receivables, Payables and Transfers (Continued)
The interfund receivables and payables above predominately resulted from payment made by certain
funds on behalf of other funds. All interfund balances are expected to be repaid within one year.
A summary of interfund transfers is as follows:
Transfers
Transfers
Fund
In
Out
Current Fund
289,748.52
$
-
$
Animal Control Trust
-
34,592.82
Assessment Trust
-
14,730.29
Capital Fund
-
240,425.51
289,748.52
$
289,748.62
$
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to
the fund that statute or budget requires to expend them (i.e. interest earning), (2) provide cash flow to
other funds to temporary finance expenditures that are on a reimbursable basis (i.e. grants), (3) when no
bank account exists for a fund, and (4) utilizing surplus or fund balance from one fund as budgeted
revenue in another.
Note 8. Fixed Assets
The following is a summary of changes in the General Fixed Assets Account Group for the year ended
December 31, 2020.
Balance
Balance
December 31,
December 31,
2019
Additions
Deletions
2020
Land
5,864,700.00
$
-
$
-
$
5,864,700.00
$
Buildings and Improvements
6,533,000.00
-
-
6,533,000.00
Machinery & Equipment
9,444,013.00
670,274.23
-
10,114,287.23
21,841,713.00
$
670,274.23
$
-
$
22,511,987.23
$
42
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 9. Pension Obligations
A. Public Employees’ Retirement System (PERS)
Plan Description - The State of New Jersey, Public Employees' Retirement System (PERS) is a cost-
sharing multiple-employer defined benefit pension plan administered by the State of New Jersey,
Division of Pensions and Benefits (the Division). For additional information about PERS, please refer to
Division's
Comprehensive
Annual
Financial
Report
(CAFR)
which
can
be
found
at
http://www.state.nj.us/treasury/pensions/annual-reports.shtml.
The vesting and benefit provisions are set by N.J.S.A. 43:15A. PERS provides retirement, death and
disability benefits. All benefits vest after ten years of service.
The following represents the membership tiers for PERS:
Tier
Definition
1
Members who were enrolled prior to July 1, 2007
2
Members who were eligible to enroll on or after July 1, 2007 and prior to November 2, 2008
3
Members who were eligible to enroll on or after November 2, 2008 and prior to May 22, 2010
4
Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011
5
Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits of 1/55th of final average salary for each year of service credit is available to
tiers 1 and 2 members upon reaching age 60 and to tier 3 members upon reaching age 62. Service
retirement benefits of 1/60th of final average salary for each year of service credit is available to tier 4
members upon reaching age 62 and tier 5 members upon reaching age 65. Early retirement benefits are
available to tiers 1 and 2 members before reaching age 60, tiers 3 and 4 with 25 or more years of service
credit before age 62 and tier 5 with 30 or more years of service credit before age 65. Benefits are reduced
by a fraction of a percent for each month that a member retires prior to the age at which a member can
receive full early retirement benefits in accordance with their respective tier. Tier 1 members can receive
an unreduced benefit from age 55 to age 60 if they have at least 25 years of service. Deferred retirement is
available to members who have at least 10 years of service credit and have not reached the service
retirement age for the respective tier.
Basis of Presentation - The schedules of employer and nonemployer allocations and the schedules of
pension amounts by employer and nonemployer (collectively, the Schedules) present amounts that are
considered elements of the financial statements of PERS or its participating employers. Accordingly, they
do not purport to be a complete presentation of the financial position or changes in financial position of
PERS or the participating employers. The accompanying Schedules were prepared in accordance with
U.S. generally accepted accounting principles. Such preparation requires management of PERS to make a
number of estimates and assumptions relating to the reported amounts. Due to the inherent nature of these
estimates, actual results could differ from those estimates.
43
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS) (continued):
Contributions - The contribution policy for PERS is set by N.J.S.A. 43:15A and requires contributions by
active members and contributing employers. State legislation has modified the amount that is contributed
by the State. The State's pension contribution is based on an actuarially determined amount, which
includes the employer portion of the normal cost and an amortization of the unfunded accrued liability.
Funding for noncontributory group insurance benefits is based on actual claims paid. For the fiscal year
2019, the State's pension contribution was less than the actuarial determined amount. The local
employers' contribution amounts are based on an actuarially determined rate, which includes the normal
cost and unfunded accrued liability. Chapter 19, P.L. 2009 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 employers will be credited with the full payment and any such
amounts will not be included in their unfunded liability. The actuaries will determine the unfunded
liability of those retirement systems, by employer, for the reduced normal and accrued liability
contributions provided under this law. This unfunded liability will be paid by the employer in level
annual payments over a period of 15 years beginning with the payments due in the fiscal year ended June
30, 2012 and will be adjusted by the rate of return on the actuarial value of assets. For the year ended
December 31, 2020, the Borough’s contractually required contribution to PERS plan was $428,293.
Components of Net Pension Liability - At December 31, 2020, the Borough’s proportionate share of the
PERS net pension liability was $6,384,516. The net pension liability was measured as of June 30, 2020.
The total pension liability used to calculate the net pension liability was determined using update
procedures to roll forward the total pension liability from an actuarial valuation as of July 1, 2019, which
was rolled forward to June 30, 2020. The Borough’s proportion of the net pension liability was based on
the Borough’s actual contributions to the plan relative to the total of all participating employers’
contributions for the year ended June 30, 2020. The Borough’s proportion measured as of June 30, 2020,
was 0.0391510737% which was a decrease of 0.001166153% from its proportion measured as of June 30,
2019.
12/31/2020
12/31/2019
Actuarial valuation date (including roll forward)
June 30, 2020
June 30, 2019
Deferred Outflows of Resources
1,185,371
$
1,810,814
$
Deferred Inflows of Resources
2,898,511
2,664,990
Net Pension Liability
6,384,516
7,255,627
Borough's portion of the Plan's total Net Pension Liability
0.03915%
0.04027%
Balances at December 31, 2020 and December 31, 2019
44
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS) (continued):
Pension Expense and Deferred Outflows/Inflows of Resources - At December 31, 2020, the Borough’s
proportionate share of the PERS expense, calculated by the plan as of the June 30, 2020 measurement
date is $444,687. This expense is not recognized by the Borough because of the regulatory basis of
accounting as described in Note 1, but as previously mentioned the Borough contributed $428,293 to the
plan in 2020.
At December 31, 2020, the Borough reported deferred outflows of resources and deferred inflows of
resources related to PERS from the following sources:
Deferred Outflows
Deferred Inflows
of Resources
of Resources
Differences between Expected
and Actual Experience
116,252
$
22,578
$
Changes of Assumptions
207,121
2,673,257
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
218,228
-
Changes in Proportion and Differences
between Borough Contributions and
Proportionate Share of Contributions
643,770
202,676
1,185,371
$
2,898,511
$
45
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS) (continued):
The Borough will amortize the above sources of deferred outflows and inflows related to PERS over the
following number of years:
Deferred
Deferred
Outflow of
Inflow of
Resources
Resources
Differences between Expected
and Actual Experience
Year of Pension Plan Deferral:
June 30, 2014
-
-
June 30, 2015
5.72
-
June 30, 2016
5.57
-
June 30, 2017
5.48
-
June 30, 2018
5.63
-
June 30, 2019
5.21
-
June 30, 2020
5.16
-
Changes of Assumptions
Year of Pension Plan Deferral:
June 30, 2014
6.44
-
June 30, 2015
5.72
-
June 30, 2016
5.57
-
June 30, 2017
-
5.48
June 30, 2018
-
5.63
June 30, 2019
-
5.21
June 30, 2020
-
5.16
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
Year of Pension Plan Deferral:
June 30, 2014
-
5.00
June 30, 2015
-
5.00
June 30, 2016
5.00
-
June 30, 2017
5.00
-
June 30, 2018
5.00
-
June 30, 2019
5.00
-
June 30, 2020
5.00
-
Changes in Proportion and Differences
between Contributions and
Proportionate Share of Contributions
Year of Pension Plan Deferral:
June 30, 2014
6.44
6.44
June 30, 2015
5.72
5.72
June 30, 2016
5.57
5.57
June 30, 2017
5.48
5.48
June 30, 2018
5.63
5.63
June 30, 2019
5.21
5.21
June 30, 2020
5.16
5.16
46
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS) (continued):
The following is a summary of the deferred outflows of resources and deferred inflows of resources
related to PERS that will be recognized in future periods:
Year Ending
Dec 31,
Amount
2021
(197,620)
$
2022
(989,880)
2023
(225,789)
2024
(255,554)
2025
(44,297)
(1,713,140)
$
Actuarial Assumptions - The total pension asset/(liability) as of the measurement date was determined
by using an actuarial valuation as noted in the table below, with update procedures used to roll forward
the total pension liability to the measurement date. The actuarial valuations used the following actuarial
assumptions:
Inflation
Price
2.75%
Wage
3.25%
Salary Increases:
Through 2026
2.00 - 6.00% Based on Years of Service
Thereafter
3.00 - 7.00% Based on Years of Service
Investment Rate of Return
7.00%
Mortality Rate Table
Pub-2010 General Below-Median Income Employee mortality table
PERS
with fully generational mortality improvement projections
from the central year using Scale MP-2020
Period of Actuarial Experience
Study upon which Actuarial
Assumptions were Based
July 1, 2014 - June 30, 2018
Pre-retirement mortality rates were based on the Pub-2010 General Below-Median Income Employee
Mortality Table with an 82.2% adjustment for males and 101.4% adjustment for females, and with future
improvement from the base year of 2010 on a generational basis. Post-retirement mortality rates were
based on the Pub-2010 General Below-Median Income Healthy Retiree mortality table with a 91.4%
adjustment for males and 99.7% adjustment for females, and with future improvement from the base year
of 2010 on a generational basis. Disability retirement rates used to value disabled retirees were based on
the Pub-2010 Non-Safety Disabled Retiree mortality table with a 127.7% adjustment for males and
117.2% adjustment for females, and with future improvement from the base year of 2010 on a
generational basis. Mortality improvement is based on Scale MP-2020.
47
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS) (continued):
The actuarial assumptions used in the July 1, 2019 valuation were based on the results of an actuarial
experience study for the period July 1, 2014 to June 30, 2018. 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.
Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of
return on plan investments (7.00% at June 30, 2020) is determined by the State Treasurer, after
consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the
board of trustees and the actuaries. The long-term expected rate of return was determined using a building
block method in which best-estimate ranges of expected future real rates of return (expected returns, net
of pension plan investment expense and inflation) are developed for each major asset class. These ranges
are combined to produce the long-term expected rate of return by weighting the expected future real rates
of return by the target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic rates of return for each major asset class included in PERS’s target asset allocation as of June
30, 2020 are summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
U.S. Equity
27.00%
7.71%
Non-U.S. Developed Markets Equity
13.50%
8.57%
Emerging Markets Equity
5.50%
10.23%
Private Credit
13.00%
11.42%
Real Assets
3.00%
9.73%
Real Estate
8.00%
9.56%
High Yield
2.00%
5.95%
Private Credit
8.00%
7.59%
Investment Grade Credit
8.00%
2.67%
Cash Equivalents
4.00%
0.50%
U.S. Treasuries
5.00%
1.94%
Risk Mitigation Strategies
3.00%
3.40%
100.00%
48
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 9. Pension Obligations (continued):
A. Public Employees’ Retirement System (PERS) (continued):
Discount Rate - The discount rate used to measure the total pension liability was 7.00% as of June 30,
2020. 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 based on 78% of the actuarially determined
contributions for the State employer and 100% of actuarially determined contributions for the local
employers. 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. Therefore, the long-term expected rate
of return on plan investments was applied to all projected benefit payments to determine the total pension
liability.
Sensitivity of the Borough’s proportionate share of the Net Pension Liability to Changes in the
Discount Rate - The following presents the Borough’s proportionate share of the net pension liability
calculated using the discount rate as disclosed above, as well as what the Borough’s proportionate share
of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (6.00%) or 1-percentage-point higher (8.00%) than the current rate:
1%
Current
1%
Decrease
Discount Rate
Increase
(6.00%)
(7.00%)
(8.00%)
Borough's Proportionate Share
of the Net Pension Liability
8,100,239
$
6,384,516
$
5,021,482
$
B. Police and Firemen’s Retirement System (PFRS)
Plan Description – The State of New Jersey, Police and Firemen’s Retirement System (PFRS) is a cost-
sharing multiple-employer defined benefit pension plan administered by the State of New Jersey,
Division of Pensions and Benefits (the Division). For additional information about PFRS, please refer to
the Division’s Comprehensive Annual Financial Report (CAFR) which can be found at
http://www.state.nj.us/treasury/pensions/annual-reports.shtml.
The vesting and benefit provisions are set by N.J.S.A. 43:16A. PFRS provides retirement as well as death
and disability benefits. All benefits vest after ten years of service, except disability benefits which vest
after four years of service.
The following represents the membership tiers for PFRS:
Tier
Definition
1
Members who were enrolled prior to May 22, 2010.
2
Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011
3
Members who were eligible to enroll on or after June 28, 2011
49
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
Service retirement benefits are available at age 55 and are generally determined to be 2% of final
compensation for each year of creditable service, as defined, up to 30 years plus 1% for each year of
service in excess of 30 years. Members may seek special retirement after achieving 25 years of creditable
service, in which benefits would equal 65% (tiers 1 and 2 members) and 60% (tier 3 members) of final
compensation plus 1 % for each year if 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.
Basis of Presentation - The schedule of employer and nonemployer allocations and the schedule of
pension amounts by employer and nonemployer (collectively, the Schedules) present amounts that are
considered elements of the financial statements of PFRS, its participating employers or the State as a
nonemployer contributing entity. Accordingly, they do not purport to be a complete presentation of the
financial position or changes in financial position of PFRS, the participating employers, or the State. The
accompanying Schedules were prepared in accordance with U.S. generally accepted accounting
principles. Such preparation requires management of PFRS to make a number of estimates and
assumptions relating to the reported amounts. Due to the inherent nature of these estimates, actual results
could differ from those estimates.
Contributions - The contribution policy for PFRS is set by N.J.S.A. 43:16A and requires contributions by
active members and contributing employers. State legislation has modified the amount that is contributed
by the State. The State's contribution amount is based on an actuarially determined rate which includes
the normal cost and unfunded accrued liability. For fiscal year 2020, the State contributed an amount less
than the actuarially determined amount. The Local employers’ contribution amounts are based on an
actuarially determined rate which includes the normal cost and unfunded accrued liability. Chapter 19,
P.L. 2009 provided an option for local employers of PFRS to contribute 50% of the normal and accrued
liability contribution amounts certified for payments due in State fiscal year 2009. Such employers will be
credited with the full payment and any such amounts will not be included in their unfunded liability. The
actuaries will determine the unfunded liability of those retirement systems, by employer, for the reduced
normal and accrued liability contributions provided under this law.
This unfunded liability will be paid by the employer in level annual payments over a period of 15 years
beginning with the payments due in the fiscal year ended June 30, 2012 and will be adjusted by the rate of
return on the actuarial value of assets. For the year ended December 31, 2020, the Borough’s
contractually required contributions to PFRS plan was $1,065,546.
Net Pension Liability and Pension Expense - At December 31, 2020 the Borough’s proportionate share
of the PFRS net pension liability was $12,324,220. The net pension liability was measured as of June 30,
2020. The total pension liability used to calculate the net pension liability was determined using update
procedures to roll forward the total pension liability from an actuarial valuation as of July 1, 2019, to the
measurement date of June 30, 2020. The Borough’s proportion of the net pension liability was based on
the Borough’s actual contributions to the plan relative to the total of all participating employers’
contributions for the year ended June 30, 2020. The Borough’s proportion measured as of June 30, 2020,
was 0.0953789652%, which was an increase of 0.0055746404% from its proportion measured as of June
30, 2019.
50
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
12/31/2020
12/31/2019
Actuarial valuation date (including roll forward)
June 30, 2020
June 30, 2019
Deferred Outflows of Resources
2,768,937
$
2,061,435
$
Deferred Inflows of Resources
3,430,285
3,914,130
Net Pension Liability
12,324,220
10,990,091
Borough's portion of the Plan's total net pension Liability
0.09538%
0.08980%
Balances at December 31, 2020 and December 31, 2019
Pension Expense and Deferred Outflows/Inflows of Resources – At December 31, 2020, the
Borough’s proportionate share of the PFRS expense, calculated by the plan as of the June 30, 2020
measurement date was $1,208,329. This expense is not recognized by the Borough because of the
regulatory basis of accounting as described in Note 1, but as previously mentioned the Borough
contributed $1,065,546 to the plan in 2020.
At December 31, 2020, the Borough had deferred outflows of resources and deferred inflows of resources
related to PFRS from the following sources:
Deferred Outflows
Deferred Inflows
of Resources
of Resources
Differences between Expected
and Actual Experience
124,249
$
44,230
$
Changes of Assumptions
31,014
3,304,050
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
722,627
-
Changes in Proportion and Differences
between Borough Contributions and
Proportionate Share of Contributions
1,891,047
82,005
2,768,937
$
3,430,285
$
51
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
The Borough will amortize the above sources of deferred outflows and inflows related to PFRS over the
following number of years:
Deferred
Deferred
Outflow of
Inflow of
Resources
Resources
Differences between Expected
and Actual Experience
Year of Pension Plan Deferral:
June 30, 2014
-
-
June 30, 2015
-
5.53
June 30, 2016
-
5.58
June 30, 2017
5.59
-
June 30, 2018
5.73
-
June 30, 2019
-
5.92
June 30, 2020
5.90
-
Changes of Assumptions
Year of Pension Plan Deferral:
June 30, 2014
6.17
-
June 30, 2015
5.53
-
June 30, 2016
5.58
-
June 30, 2017
-
5.59
June 30, 2018
-
5.73
June 30, 2019
-
5.92
June 30, 2020
-
5.90
Net Difference between Projected
and Actual Earnings on Pension
Plan Investments
Year of Pension Plan Deferral:
June 30, 2014
-
5.00
June 30, 2015
-
5.00
June 30, 2016
5.00
-
June 30, 2017
5.00
-
June 30, 2018
5.00
-
June 30, 2019
5.00
-
June 30, 2020
5.00
-
Changes in Proportion and Differences
between Contributions and
Proportionate Share of Contributions
Year of Pension Plan Deferral:
June 30, 2014
6.17
6.17
June 30, 2015
5.53
5.53
June 30, 2016
5.58
5.58
June 30, 2017
5.59
5.59
June 30, 2018
5.73
5.73
June 30, 2019
5.92
5.92
June 30, 2020
5.90
5.90
52
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
The following is a summary of the deferred outflows of resources and deferred inflows of resources
related to PFRS that will be recognized in future periods:
Year Ending
Dec 31,
Amount
2021
(511,107)
$
2022
(259,784)
2023
142,802
2024
267,383
2025
(300,642)
(661,348)
$
Special Funding Situation – Under N.J.S.A. 43:16A-15, local participating employers are responsible
for their own contributions based on actuarially determined amounts, except where legislation was passed
which legally obligated the State if certain circumstances occurred. The legislation which legally
obligates the state is as follows: Chapter 8, P.L. 2000, Chapter 318, P.L. 2001, Chapter 86, P.L. 2001,
Chapter 511, P.L, 1991, Chapter 109, P.L. 1979, Chapter 247, P.L. 1993 and Chapter 201, P.L. 2001. The
amounts contributed on behalf of the local participating employers under this legislation is considered to
be a special funding situation as defined by GASB Statement No. 68 and the State is treated as a non-
employer contributing entity. Since the local participating employers do not contribute under this
legislation directly to the plan (except for employer specific financed amounts), there is no net pension
liability to report in the financial statements of the local participating employers related to this legislation.
Additionally, the State’s proportionate share of the PFRS net pension liability attributable to the Borough
is $1,912,663 as of December 31, 2020. The net pension liability was measured as of June 30, 2020. The
total pension liability used to calculate the net pension liability was determined using update procedures
to roll forward the total pension liability from an actuarial valuation as of July 1, 2019, to the
measurement date of June 30, 2020. The State’s proportion of the net pension liability associated with the
Borough was based on a projection of the Borough’s long-term share of contributions to the pension plan
relative to the projected contributions of all participating members, actuarially determined. The State’s
proportion measured as of June 30, 2020 was 0.0953789652%, which was an increase of 0.0055746404%
from its proportion measured as of June 30, 2019, which is the same proportion as the Borough’s. At
December 31, 2020, the Borough’s and the State of New Jersey’s proportionate share of the PFRS net
pension liability were as follows:
Borough's Proportionate Share of Net Pension Liability
12,324,220
$
State of New Jersey's Proportionate Share of Net Pension
Liability Associated with the Borough
1,912,663
14,236,883
$
53
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
At December 31, 2020, the State’s proportionate share of the PFRS expense, associated with the Borough,
calculated by the plan as of the June 30, 2020 measurement date was $216,762.
Actuarial Assumptions - The total pension asset/(liability) as of the measurement date was determined
by using an actuarial valuation as noted in the table below, with update procedures used to roll forward
the total pension liability to the measurement date. The actuarial valuations used the following actuarial
assumptions:
Inflation
Price
2.75%
Wage
3.25%
Salary Increases:
Through all future years
3.25 - 15.25%
Based on Years of Service
Investment Rate of Return
7.00%
Mortality Rate Table
Pub-2010 Safety Employee mortality table
PFRS
with fully generational mortality improvement projections
from the central year using Scale MP-2020
Period of Actuarial Experience
Study upon which Actuarial
Assumptions were Based
July 1, 2013 - June 30, 2018
Pre-retirement mortality rates were based on the Pub-2010 Safety Employee mortality table with a
105.6% adjustment for males and 102.5% adjustment for females, and with future improvement from the
base year of 2010 on a generational basis. Post-retirement mortality rates were based on the Pub-2010
Safety Retiree Below-Median Income Weighted mortality table with a 96.7% adjustment for males and
96.0% adjustment for females, and with future improvement from the base year of 2010 on a generational
basis. For beneficiaries (contingent annuitants), the Pub-2010 General Retiree Below-Median Income
Weighted mortality table was used, unadjusted, and with future improvement from the base year of 2010
on a generational basis. Disability rates were based on the Pub-2010 Safety Disabled Retiree mortality
table with a 152.0% adjustment for males and 109.3% adjustment for females, and with future
improvement from the base year of 2010 on a generational basis. Mortality improvement is based on
Scale MP-2020.
The actuarial assumptions used in the July 1, 2019 valuation were based on the results of an actuarial
experience study for the period July 1, 2013 to June 30, 2018.
54
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of
return on plan investments (7.00% at June 30, 2020) is determined by the State Treasurer, after
consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the
board of trustees and the actuaries. The long-term expected rate of return was determined using a building
block method in which best-estimate ranges of expected future real rates of return (expected returns, net
of pension plan investment expense and inflation) are developed for each major asset class. These ranges
are combined to produce the long-term expected rate of return by weighting the expected future real rates
of return by the target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic rates of return for each major asset class included in PFRS’s target asset allocation as of June
30, 2020 are summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
U.S. Equity
27.00%
7.71%
Non-U.S. Developed Markets Equity
13.50%
8.57%
Emerging Markets Equity
5.50%
10.23%
Private Credit
13.00%
11.42%
Real Assets
3.00%
9.73%
Real Estate
8.00%
9.56%
High Yield
2.00%
5.95%
Private Credit
8.00%
7.59%
Investment Grade Credit
8.00%
2.67%
Cash Equivalents
4.00%
0.50%
U.S. Treasuries
5.00%
1.94%
Risk Mitigation Strategies
3.00%
3.40%
100.00%
Discount Rate - The discount rate used to measure the total pension liability was 7.00% as of June 30,
2020. 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 based on 78% of the actuarially determined
contributions for the State employer and 100% of actuarially determined contributions for local
employers. Based on those assumptions, the plan’s fiduciary net position was projected to be available to
make all projected future benefit payments of current plan members. Therefore, the long-term expected
rate of return on plan investments was applied to all projected benefit payments to determine the total
pension liability.
55
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 9. Pension Obligations (continued):
B. Police and Firemen’s Retirement System (PFRS) (continued):
Sensitivity of the Borough’s proportionate share of the Net Pension Liability to Changes in the
Discount Rate - The following presents the Borough’s proportionate share of the net pension liability
calculated using the discount rate as disclosed above, as well as what the Borough’s proportionate share
of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (6.00%) or 1-percentage-point higher (8.00%) than the current rate:
1%
Current
1%
Decrease
Discount Rate
Increase
(6.00%)
(7.00%)
(8.00%)
Borough's Proportionate Share
of the Net Pension Liability
16,388,676
$
12,324,220
$
8,948,379
$
State of New Jersey's Proportionate
Share of Net Pension Liability
associated with the Borough
2,543,448
1,912,663
1,388,748
18,932,124
$
14,236,883
$
10,337,127
$
Related Party Investments - The Division of Pensions and Benefits does not invest in securities issued
by the Borough.
Note 10. Postemployment Benefits Other Than Pensions
As of the date of this report, the New Jersey Division of Pension and Benefits has not provided updated
actuarial valuations for other post-employment obligations for the year ended June 30, 2020. The New
Jersey Division of Pension and Benefits will post these reports on their website as they are made
available. The footnote below includes the most current information made publicly available, which had a
reporting date of June 30, 2019.
General Information about the OPEB Plan
The State Health Benefit Local Government Retired Employees Plan (the Plan) is a cost-sharing multiple-
employer defined benefit other postemployment benefit (OPEB) plan with a special funding situation. It
covers employees of local government employers that have adopted a resolution to participate in the Plan.
For additional information about the Plan, please refer to the State of New Jersey (the State), Division of
Pensions and Benefits’ (the Division) Comprehensive Annual Financial Report (CAFR), which can be
found at https://www.state.nj.us/treasury/pensions/financial-reports.shtml.
56
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 10. Postemployment Benefits Other Than Pensions (continued):
The Plan provides medical and prescription drug to retirees and their covered dependents of the
participating employers. Under the provisions of Chapter 88, P.L 1974 and Chapter 48, P.L. 1999, local
government employers electing to provide postretirement medical coverage to their employees must file a
resolution with the Division. Under Chapter 88, local employers elect to provide benefit coverage based
on the eligibility rules and regulations promulgated by the State Health Benefits Commission. Chapter 48
allows local employers to establish their own age and service eligibility for employer paid health benefits
coverage for retired employees. Under Chapter 48, the employer may assume the cost of postretirement
medical coverage for employees and their dependents who: 1) retired on a disability pension; or 2) retired
with 25 or more years of service credit in a State or locally administered retirement system and a period
of service of up to 25 years with the employer at the time of retirement as established by the employer; or
3) retired and reached the age of 65 with 25 or more years of service credit in a State or locally
administered retirement system and a period of service of up to 25 years with the employer at the time of
retirement as established by the employer; or 4) retired and reached age 62 with at least 15 years of
service with the employer. Further, the law provides that the employer paid obligations for retiree
coverage may be determined by means of a collective negotiations agreement.
In accordance with Chapter 330, P.L. 1997, which is codified in N.J.S.A 52:14-17.32i, the State provides
medical and prescription coverage to local police officers and firefighters, who retire with 25 years of
service or on a disability from an employer who does not provide postretirement medical coverage. Local
employers were required to file a resolution with the Division in order for their employees to qualify for
State-paid retiree health benefits coverage under Chapter 330. 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.
Pursuant to Chapter 78, P.L, 2011, future retirees eligible for postretirement medical coverage who have
less than 20 years of creditable service on June 28, 2011 will be required to pay a percentage of the cost
of their health care coverage in retirement provided they retire with 25 or more years of pension service
credit. The percentage of the premium for which the retiree will be responsible will be determined based
on the retiree’s annual retirement benefit and level of coverage.
Basis of Presentation
The schedule of employer and nonemployer allocations and the schedule of OPEB amounts by employer
and nonemployer (collectively, the Schedules) present amounts that are considered elements of the
financial statements of its participating employers or the State as a nonemployer contributing entity.
Accordingly, they do not purport to be a complete presentation of the financial position or changes in
financial position of the participating employers or the State. The accompanying Schedules were prepared
in accordance with U.S. generally accepted accounting principles. Such preparation requires management
of the Plan to make a number of estimates and assumptions relating to the reported amounts. Due to the
inherent nature of these estimates, actual results could differ from those estimates.
57
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 10. Postemployment Benefits Other Than Pensions (continued):
Allocation Methodology
GASB Statement No. 75 requires participating employers in the Plan to recognize their proportionate
share of the collective net OPEB liability, collective deferred outflows of resources, collective deferred
inflows of resources, and collective OPEB (benefit) expense. The special funding situation’s and
nonspecial funding situation’s net OPEB liability, deferred outflows of resources, deferred inflows of
resources, and OPEB (benefit) expense are based on separately calculated total OPEB liabilities. For the
special funding situation and the nonspecial funding situation, the total OPEB liabilities for the year
ended June 30, 2019 were $5,637,151,775.00 and $8,182,092,807.00, respectively. The nonspecial
funding situation’s net OPEB liability, deferred outflows of resources, deferred inflows of resources, and
OPEB (benefit) expense are further allocated to employers based on the ratio of the plan members of an
individual employer to the total members of the Plan’s nonspecial funding situation during the
measurement period July 1, 2018 through June 30, 2019. Employer and nonemployer allocation
percentages have been rounded for presentation purposes; therefore, amounts presented in the schedule of
OPEB amounts by employer and nonemployer may result in immaterial differences.
Net OPEB Liability
The total OPEB liability as of June 30, 2019 was determined by an actuarial valuation as of June 30,
2018, which was rolled forward to June 30, 2019. 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 Rate
2.50%
Salary Increases*:
Public Employees' Retirement System (PERS)
Initial Fiscal Year Applied
Rate through 2026
2.00% to 6.00%
Rate thereafter
3.00% to 7.00%
Police and Firemen's Retirement System (PFRS)
Rate for all future years
3.25% to 15.25%
Mortality:
PERS
PERS
Pub-2010 General classification headcount weighted mortality with fully generational
mortality improvement projections from the central year using Scale MP-2019
Pub-2010 Safety classification headcount weighted mortality with fully generational
mortality improvement projections from the central year using Scale MP-2019
* - Salary Increases are based on the defined benefit plan that the member is enrolled in and his or her age.
58
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 10. Postemployment Benefits Other Than Pensions (continued):
OPEB Obligation and OPEB (benefit) Expense - The State’s proportionate share of the total Other
Post-Employment Benefits Obligations, attributable to the Borough’s as of June 30, 2019 was
$15,989,105.00. The Borough’s proportionate share was $0.
The OPEB Obligation was measured as of June 30, 2019, and the total OPEB Obligation used to calculate
the OPEB Obligation was determined by an actuarial valuation as of July 1, 2018, which was rolled
forward to June 30, 2019. The State’s proportionate share of the OPEB Obligation associated with the
Borough was based on projection of the State’s long-term contributions to the OPEB plan associated with
the Borough relative to the projected contributions by the State associated with all participating
Municipalities, actuarially determined. At June 30, 2019, the State proportionate share of the OPEB
Obligation attributable to the Borough was 0.1180349998%, which was a decrease of 0.0123199997%
from its proportion measured as of June 30, 2018.
For the fiscal year ended June 30, 2019, the State of New Jersey recognized an OPEB (benefit) expense in
the amount of $(355,698.00) for the State’s proportionate share of the OPEB (benefit) expense
attributable to the Borough. This OPEB (benefit) expense was based on the OPEB plans June 30, 2019
measurement date.
Actuarial assumptions used in the July 1, 2018 valuation were based on the results of the PFRS and PERS
experience studies prepared for July 1, 2013 to June 30, 2018 and July 1, 2014 to June 30, 2018,
respectively.
100% of active members are considered to participate in the Plan upon retirement.
Health Care Trend Assumptions
For pre-Medicare medical benefits, the trend rate is initially 5.7% and decreases to a 4.5% long-term
trend rate after eight years. For post-65 medical benefits, the actual fully-insured Medicare Advantage
trend rates for fiscal year 2020 are reflected. The assumed post-65 medical trend is 4.5% for all future
years. For prescription drug benefits, the initial trend rate is 7.5% decreasing to a 4.5% long-term trend
rate after eight years.
Discount Rate
The discount rate for June 30, 2019 was 3.50%. 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.
59
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 10. Postemployment Benefits Other Than Pensions (continued):
Sensitivity of Net OPEB Liability to Changes in the Discount Rate
The following presents the collective net OPEB liability of the participating employers as of June 30,
2019, 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 1-percentage point lower or 1-
percentage-point higher than the current rate:
At 1%
At Discount
At 1%
Decrease (2.50%)
Rate (3.50%)
Increase (4.50%)
State of New Jersey's
Proportionate Share of Total OPEB
Obligation Associated with
The Borough
18,487,472.80
$
15,989,105.00
$
13,958,850.94
$
State of New Jersey's
Total Nonemployer OPEB
Liability
15,662,704,137.00
13,546,071,100.00
11,826,026,995.00
Sensitivity of Net OPEB Liability to Changes in the Healthcare Trend Rate:
The following presents the net OPEB liability as of June 30, 2019, 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 1-percentage point lower or 1-percentage point higher than the current rate:
Healthcare Cost
1% Decrease
Trend Rate
1% Increase
State of New Jersey's
Proportionate Share of Total OPEB
Obligations Associated with
The Borough
13,492,834.19
$
15,989,105.00
$
19,173,518.65
$
State of New Jersey's
Total Nonemployer OPEB
Liability
11,431,214,644.00
13,546,071,100.00
16,243,926,531.00
Additional Information – The following is a summary of the collective balances of the local group at
June 30, 2019:
60
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 10. Postemployment Benefits Other Than Pensions (continued):
Collective Balances at December 31, 2019 and December 31, 2018
12/31/2019
12/31/2018
Actuarial valuation date (including roll forward)
June 30, 2019
June 30, 2018
Collective Deferred Outflows of Resources
11,158,226.00
$
8,279,239.00
$
Collective Deferred Inflows of Resources
8,761,825,481.00
7,154,925,195.00
Collective Net OPEB Liability
13,546,071,100.00
15,666,618,141.00
Borough's Portion
0.118035%
0.130355%
The collective amounts reported as a deferred outflows of resources and deferred inflows of resources
related to OPEB will be recognized in OPEB expense as follows:
Year Ending June 30:
2020
(1,425,201,517.00)
$
2021
(1,425,201,517.00)
2022
(1,426,076,187.00)
2023
(1,427,489,995.00)
2024
(1,428,781,861.00)
Thereafter
(1,617,916,178.00)
(8,750,667,255.00)
$
Changes in Proportion
The previous amounts do not include employer specific deferred outflows of resources and deferred
inflow of resources related to the changes in proportion. These amounts should be recognized (amortized)
by each employer over the average remaining service lives of all plan members, which is 8.05, 8.14 and
8.04 years for the 2019, 2018 and 2017 amounts, respectively.
61
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 10. Postemployment Benefits Other Than Pensions (continued):
Plan Membership
At June 30, 2018, the Program membership consisted of the following:
June 30, 2018
Active Plan Members
63,032
Retirees Currently Receiving Benefits
27,871
Total Plan Members
90,903
Changes in the Total OPEB Liability
The change in the State's Total OPEB liability for the fiscal year ended June 30, 2019 (measurement date
June 30, 2018) is as follows:
Service Cost
666,574,660.00
$
Interest on the Total OPEB Liability
636,082,461.00
Change of Benefit Terms
(1,903,958.00)
Differences Between Expected and Actual Experience
(1,399,921,930.00)
Changes of Assumptions
(1,635,760,217.00)
Contributions From the Employer
(346,415,056.00)
Contributions From Non-Employer Contributing Entity
(43,854,500.00)
Net Investment Income
(4,826,936.00)
Administrative Expense
9,478,435.00
Net Change in Total OPEB Liability
(2,120,547,041.00)
Total OPEB Liability (Beginning)
15,666,618,141.00
Total OPEB Liability (Ending)
13,546,071,100.00
$
Pre-retirement mortality rates were based on the Pub-2010 General Below-Median Income Employee
Mortality Table with an 82.2% adjustment for males and 101.4% adjustment for females, and with future
improvement from the base year of 2010 on a generational basis. Post-retirement mortality rates were
based on the Pub-2010 General Below-Median Income Healthy Retiree mortality table with a 91.4%
adjustment for males and 99.7% adjustment for females, and with future improvement from the base year
of 2010 on a generational basis. Disability retirement rates used to value disabled retirees were based on
the Pub-2010 Non-Safety Disabled Retiree mortality table with a 127.7% adjustment for males and
117.2% adjustment for females, and with future improvement from the base year of 2010 on a
generational basis. Mortality improvement is based on Scale MP-2019.
62
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 11. Municipal Debt
The following schedule represents the Borough’s summary of debt, as filed in the Borough’s Annual Debt
Statement required by the Local Bond Law of New Jersey for the current and two previous years:
2020
2019
2018
Issued:
General:
Bonds, Notes and Loans
13,685,144.51
$
14,208,073.47
$
13,098,288.15
$
Utility:
Bonds, Notes and Loans
663,500.00
785,000.00
902,000.00
Total Debt Issued
14,348,644.51
14,993,073.47
14,000,288.15
Authorized but not issued:
General:
Bonds, Notes and Loans
3,369,421.05
3,340,196.90
4,568,881.79
Utility:
Bonds, Notes and Loans
250,000.00
250,000.00
250,000.00
Total Authorized But Not Issued
3,619,421.05
3,590,196.90
4,818,881.79
Total Gross Debt
17,968,065.56
$
18,583,270.37
$
18,819,169.94
$
Deductions:
General:
Funds on Hand For Payment of Bonds and Notes:
Utility:
Self Liquidating Debt
-
1,035,000.00
1,128,091.20
Total Deductions
-
1,035,000.00
1,128,091.20
Total Net Debt
17,968,065.56
$
17,548,270.37
$
17,691,078.74
$
Summary of Statutory Debt Condition - Annual Debt Statement
The following schedule is a summary of the previous schedule and is prepared in accordance with the
required method of setting up the Annual Debt Statement:
Gross Debt
Deductions
Net Debt
Local School Debt
875,000.00
$
875,000.00
$
-
$
Regional School Debt
-
General Debt
17,054,565.56
-
17,054,565.56
Utility Debt
913,500.00
913,500.00
18,843,065.56
$
875,000.00
$
17,968,065.56
$
63
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 11. Municipal Debt (continued)
Net Debt $39,123,089.76 divided by the average Equalized Valuation Basis per N.J.S.A 40A:2-2 as
amended, $1,602,257,725, equals 1.058%. New Jersey statute 40A:2-6, as amended, limits the debt of a
Municipality to 3.5% of the last three preceding year’s average equalized valuations of real estate,
including improvements and the assessed valuation of Class II Railroad Property. The remaining
borrowing power in dollars at December 31, 2020 is calculated as follows:
Borrowing Power Under N.J.S. 40A:2-6 as Amended
3 1/2% of Equalized Valuation Basis (Municipal)
56,079,020.40
$
Net Debt
16,955,930.64
Remaining Borrowing Power
39,123,089.76
$
Self-Liquidating Utility Calculation per N.J.S.A. 40A:2-46
Cash Receipts From Fees, Rents
or Other Charges for the Year
196,170.54
$
Deductions:
Operating and Maintenance Costs
315,000.00
$
Debt Service
78,528.00
Total Deductions
393,528.00
Excess/(Deficit) in Revenue
(197,357.46)
$
*If Excess in Revenues all Utility Debt is Deducted
General Debt
A. Serial Bonds Payable
On February 15, 2010, the Borough issued $9,865,000 of General Obligation Bonds. The General
Obligation Bonds were issued at interest rates varying from 3.00% to 4.00% and mature on February 15,
2025.
On September 15, 2010, the Borough issued $2,878,000 of General Obligation Bonds. The General
Obligation Bonds were issued at interest rates varying from 3.00% to 4.00% and mature on September 15,
2025.
64
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 11. Municipal Debt (continued)
On December 5, 2019, the Borough issued $3,700,000 of Refunding Bonds to refund the callable portion
of the outstanding 2010 Bond Issue. The Refunding Bonds were issued at interest rates varying from
4.00% to 5.00% and mature on February 15, 2025.
Principal and interest due on the outstanding bonds is as follows:
Year
Principal
Interest
Total
2021
1,000,500.00 202,075.00 1,202,575.00
2022
1,041,000.00 167,230.00 1,208,230.00
2023
1,053,000.00 125,750.00 1,178,750.00
2024
1,073,500.00 79,450.00 1,152,950.00
2025
1,076,500.00 30,450.00 1,106,950.00
5,244,500.00
$
604,955.00
$
5,849,455.00
$
B. Bond Anticipation Notes Payable – Short Term Debt
The following is a summary of bond anticipation notes payable accounted for in the General Capital Fund
at December 31, 2020:
Balance
Date of
Date of
December 31,
Description
Issue
Maturity
Rate
2020
Series 2020 A
6/25/2020
6/24/2021
0.500%
5,282,106.00
$
5,282,106.00
$
The purpose of these short-term borrowings was to provide resources for general capital construction,
acquisitions or improvement projects and other purposes permitted by State Local Bond Law NJSA
40A:2 et. seq.
C. Bonds and Notes Authorized But Not Issued
As of December 31, 2020, the Borough had $3,369,421.05 in various General Capital bonds and notes
authorized but not issued.
65
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 11. Municipal Debt (continued)
D. Loans Payable
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 $43,720.79 and $55,663.23
at December 31, 2019 and 2018 has been included in the calculation of the Bough’s statutory debt
condition. Terms of the above loans are included in their respective supplemental schedules (Exhibit C-
16).
New Jersey Environmental Infrastructure Trust
The Borough has contracted with the New Jersey Environmental Infrastructure Trust to fund cost related
to sewer system. Information on these loans and as included in their respective supplemental schedule is
as followed:
Infrastructure Trust Loan:
Dated Date
Oct. 15, 2004
Draw Down Date‐ Expected
Nov. 4, 2004
Loan Amount
895,000.00
$
Principal Due Dates
Sept. 1
Interest Rates
2.110%‐5.160%
Interest Due Dates
Mar. 1 & Sept. 1
Number of Payments
19
Final Payments
Sept. 1 2024
Infrastructure Fund Loan (Principal Only):
Dated Date
Oct. 15, 2004
Draw Down Date‐ Expected
Nov. 4, 2004
Loan Amount
844,827.50
$
Principal Due Dates
Feb. 1 & Aug. 1
Non‐Interest Loan
Number of Payments
38
Final Payments
Aug. 1, 2024
New Jersey Infrastructure Bank Loan
On September 16, 2019 the Borough was issued a note from the New Jersey Infrastructure Trust Act in
the amount of $898,891.00. The note matures on June 30, 2022. No payments of principal or interest on
this short-term loan will be required until construction completion. This note does not yet have a
repayment schedule available nor has the interest been determined.
66
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 11. Municipal Debt (continued)
MCIA Loan Agreements
Capital Equipment and Improvement Revenue Bonds, Series 2013
The Borough entered into a capital equipment loan agreement with Middlesex County Improvement
Authority – Capital Equipment and Improvement Revenue Bonds, Series 2013 in the amount of
$2,900,567.38 acquisition of 10-year capital equipment. The loan obligation is due in ten annual
installment commencing with 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 and
bearing interest rates between 2% for calendar year 2015 and 4% for calendar year 2023.
Capital Equipment and Improvement Revenue Bonds, Series 2015
The Borough entered into a capital equipment loan agreement with Middlesex County Improvement
Authority – Capital Equipment and Improvement Revenue Bonds, Series 2013 in the amount of
$1,146,063.89 acquisition of 5-year capital equipment. The loan obligation is due in ten annual
installment commencing with 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 interest rates between 1.5% for calendar year 2016 and 4% for calendar year 2020.
Year
Principal
Interest
Total
2021
84,438.34 14,106.26 98,544.60
2022
90,167.01 11,356.26 101,523.27
2023
90,044.84 8,606.26 98,651.10
2024
55,041.02 5,606.26 60,647.28
319,691.21
$
39,675.04
$
359,366.25
$
67
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 11. Municipal Debt (continued)
Swimming Pool Utility Debt
A. Serial Bonds Payable
In 2015 the Borough issued $1,235,000 of Utility Revenue Bonds. The Bonds were issued at interest rates
varying from 2.00% to 2.50% and mature on July 15, 2025.
Year
Principal
Interest
Total
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
141,000.00 3,643.55 144,643.55
663,000.00
$
46,903.55
$
709,903.55
$
B. Bond Anticipation Notes Payable – Short Term Debt
The Borough had no bond anticipation notes outstanding in the Utility Capital Fund at December 31,
2020.
C. Bonds and Notes Authorized But Not Issued
As of December 31, 2020 the Borough had $250,000.00 in various Utility bonds and notes authorized but
not issued.
Summary of Principal Debt
A summary of the changes in long-term and short term debt of the Borough is as follows:
Balance
Balance
Balance
December 31,
Accrued/
Retired/
December 31,
Due Within
2019
Increases
Decreases
2020
One Year
General Capital:
General Bonds
6,493,000.00
$
-
$
1,248,500.00
$
5,244,500.00
$
1,000,500.00
$
Bond Anticipation Notes
6,180,997.00
6,550,524.00
5,282,106.00
7,449,415.00
6,550,524.00
Loans
1,534,076.47
-
542,846.96
991,229.51
401,749.49
14,208,073.47
$
6,550,524.00
$
7,073,452.96
$
13,685,144.51
$
7,952,773.49
$
Utility Capital:
Utility Bonds
785,000.00
$
-
$
121,500.00
$
663,500.00
$
124,500.00
$
785,000.00
$
-
$
121,500.00
$
663,500.00
$
124,500.00
$
68
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 12. Deferred School Taxes
School taxes have been raised and the liability deferred by statutes. The balance of unpaid local school
taxes levied, amount deferred and the amount reported as a liability (payable) at December 31, are as
follows:
Local Taxes
2020
2019
Total Balance of Local Tax
13,291,232.00
$
13,124,360.00
$
Deferred Taxes
12,568,492.00
12,568,492.00
Local Tax Payable
722,740.00
$
555,868.00
$
Balance, December 31,
Note 13. Accrued Sick, Vacation and Compensation Time
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 $128,102.64 for 2020. This amount represents the current value of all accumulations
and is not intended to portray amounts the would be recorded under GAAP. Expenditures for payments 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 appropriation. In addition, the Police are entitling to compensation hours
capped at a maximum of 480 hours per officer. The estimated cost of such would approximate
$455,864.45 for 2020.
Note 14. Risk Management
The Borough is exposed to various risks of loss related to torts; theft of, damage to and destruction of
assets; errors and omissions; injuries to employees; and natural disasters.
Joint Insurance Pool
The Borough is a member of the Garden State Municipal Joint Insurance Fund (the Fund). The Fund,
which is organized and operated pursuant to the regulatory authority of the Departments of Insurance and
Community Affairs, State of New Jersey, provides for a polling of risks, subject to established limits and
deductible. The Fund’s governing board based upon actuarial and budgetary requirements calculates
payments to the Fund. Each participant in the Fund is jointly and several 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.
69
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 14. Risk Management (Continued):
New Jersey Unemployment Compensation Insurance
The Borough has elected to fund its New Jersey Unemployment Compensation Insurance under the
“Reimbursement Method”. Under this plan, the Borough is required to reimburse the New Jersey
Unemployment Trust Fund, dollar-for-dollar, for unemployment benefits paid to its former employees
who were laid off or furloughed and charged to its account with the State. The Borough is billed
quarterly for amounts due to the State. The following is a summary of Borough contributions,
reimbursements to the State for benefits paid and the ending balance of the Borough’s unemployment
trust fund for the current and previous two years:
Amount
Year
Contributions
Reimbursed
Ending Balance
2020
2,072.31
$
4,301.88
$
192,617.04
$
2019
2,688.95
8,636.23
194,846.61
2018
2,771.43
9,961.37
200,793.89
Note 15. Contingencies
Grantor Agencies
The Borough receives financial assistance from the State of New Jersey and the U.S. government in the
form of grants. Entitlement to the funds is generally conditional upon compliance with terms and
conditions of the grant agreements and applicable regulations, including the expenditure of the funds for
eligible purposes. Substantially all grants, entitlements and cost reimbursements are subject to financial
and compliance audits by grantors. As a result of these audits, costs previously reimbursed could be
disallowed and require repayment to the grantor agency. As of December 31, 2020 the Borough estimates
that no material liabilities will result from such audits.
Litigation
The Borough is a defendant in several legal proceedings that are in various stages of litigation. It is
believed that the outcome, or exposure to the Borough, from such litigation is either unknown or potential
losses, if any, would not be material to the financial statements.
Tax Appeals
Losses arising from tax appeals are recognized at the time a decision is rendered by an administrative or
judicial body; however, municipalities may establish reserves transferred from tax collections or by
budget appropriation for future payments of tax appeal losses. There are no significant pending tax
appeals as of December 31, 2020.
70
BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
Note 16: Long Term Tax Exemptions
The Borough provides for long-term tax exemptions, as authorized and permitted by New Jersey State
Statutes, N.J.S.A. 40A:20-1 et seq. sets forth the criteria and mechanism by which property taxes can and
are abated. The exemption provided by the Borough are predominately for affordable housing projects.
Taxes are 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 billing in 2020 were $507,425.00 and taxes in 2020 that otherwise would have been due
on these long-term tax exemptions amount to $885,950.64, based upon the assessed valuations of the
long-term tax exemption properties.
Note 17. Subsequent Events
Management has reviewed and evaluated all events and transactions that occurred between December 31,
2020 and September 30, 2021, the date that the financial statements were available for issuance, for
possible disclosure and recognition in the financial statements.
The Borough began participating in a Length of Service Plan, for their EMS and Firefighters during the
2021. The payments were for participation in the 2020 EMS and fire department.
71
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72
SUPPLEMENTARY EXHIBITS
73
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74
CURRENT FUND
75
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76
EXHIBIT A-4
Balance, December 31, 2019
4,409,188.51
$
61,644.18
$
Increased by Receipts:
Miscellaneous Revenue Not Anticipated
227,180.30
$
-
$
Due NJ Sr Citizens and Veterans Deductions
99,139.72
-
Taxes Receivable
46,063,917.18
-
Miscellaneous Anticipated Revenue
3,830,953.27
-
Sewer Rents Collections
983,693.63
-
Interfunds
289,748.52
1,412.00
Various Accounts Payable & Reserves
78,858.85
-
Prepaid Taxes
334,690.95
-
Tax Overpayments
-
-
Interfund Grants Accounts Receivable
-
158,025.55
Grants Unappropriated
-
-
51,908,182.42
159,437.55
Subtotal
56,317,370.93
221,081.73
Decreased by Disbursements:
Budget Appropriations
18,086,232.50
-
Interfunds
150,742.72
74,564.37
Appropriation Reserves
400,291.26
-
County Taxes Payable
6,026,740.39
-
School Taxes Payable
26,271,447.00
-
Various A/P, & Reserves
75,175.65
-
Interfund Grant
-
146,517.36
Total Cash Disbursements
51,010,629.52
221,081.73
Balance, December 31, 2020
5,306,741.41
$
-
$
CURRENT FUND
GRANT FUND
BOROUGH OF MIDDLESEX
CURRENT/GRANT FUND
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31, 2020
77
EXHIBIT A-5
BALANCE
BALANCE
DECEMBER 31,
DECEMBER 31,
2019
INCREASE
DECREASE
2020
Collector - Treasurer
200.00
$
-
$
-
$
200.00
$
Municipal Court
150.00
-
-
150.00
Construction
50.00
-
-
50.00
Borough Clerk
50.00
-
-
50.00
Swim Pool Utility
50.00
-
-
50.00
Total
500.00
$
-
$
-
$
500.00
$
SCHEDULE OF CHANGE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
CURRENT FUND
OFFICE
78
EXHIBIT A-6
BALANCE
DUE FROM
TRANSFER TO
BALANCE
DECEMBER 31,
2020
ADDED
COLLECTED
STATE OF
TAX
DECEMBER 31,
YEAR
2019
LEVY
TAXES
2019
2020
NEW JERSEY
TITLE LIENS
CANCELED
2020
2018
28,740.78
$
-
$
-
$
-
$
11,658.80
$
-
$
17,081.98
$
-
$
2019
604,605.05
-
-
-
589,036.94
(4,122.61)
-
15,840.58
3,850.14
Total
633,345.83
-
-
-
600,695.74
(4,122.61)
-
32,922.56
3,850.14
2020
-
46,366,213.09
36,140.39
245,302.70
45,463,221.44
100,404.10
17,300.01
26,683.42
549,441.81
Total
633,345.83
$
46,366,213.09
$
36,140.39
$
245,302.70
$
46,063,917.18
$
96,281.49
$
17,300.01
$
59,605.98
$
553,291.95
$
General Purpose Tax
46,366,213.09
$
Added & Omitted Taxes (54:4-6 et seq)
36,140.39
Total
46,402,353.48
$
TAX LEVY:
Local District School Tax
26,438,319.00
$
County Taxes:
County Tax
5,559,178.04
$
County Open Space Preservation
462,856.12
Due County for Added & Omitted Taxes
4,706.23
6,026,740.39
Local Tax for Municipal Purposes
13,391,306.58
Local Library Taxes
513,606.00
13,904,912.58
Add: Additional Taxes Levied
32,381.51
13,937,294.09
Total
46,402,353.48
$
ANALYSIS OF 2020 PROPERTY TAX LEVY
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY
FOR THE YEAR ENDED DECEMBER 31, 2020
79
EXHIBIT A-7
BALANCE
BALANCE
DECEMBER 31,
ACCRUED IN
DECEMBER 31,
2019
2020
COLLECTED
2020
Non-Budget Revenue
Licenses:
Alcoholic Beverages
-
$
13,534.00
$
13,534.00
$
-
$
Other
-
31,667.25
31,667.25
-
Fees & Permits - Other
6,082.77
6,082.77
Fines & Costs - Municipal Court
15,678.42
112,195.21
122,867.61
5,006.02
Interest & Costs on Taxes
-
162,903.52
162,903.52
-
Interest on Investments & Deposits
-
71,909.40
71,909.40
-
Cable Franchise Fees
-
94,018.59
94,018.59
-
Payments in Lieu of Taxes-Presbyerian Homes
-
57,620.50
57,620.50
-
Payments in Lieu of Taxes- 150 Lofts, LLC
-
458,621.86
458,621.86
-
Host Community Benefit Funds
-
67,265.85
67,265.85
-
Consolidated Municipal Property Tax Relief Aid
-
14,397.00
14,397.00
-
Energy Receipts Taxes
-
1,765,417.00
1,765,417.00
-
Dedicated Uniform Construction Code Fees Offset
with Appropriations (N.J.S.A. 40A:4-36 and N.J.A.C. 5:23-4.17)
Uniform Construction Code Fees
-
846,013.00
846,013.00
-
Hazardous Waste Facilities Sitting Act (N.J.S.A. 13-15-80)
-
20,000.00
20,000.00
-
Reserve for Debt Service Payment
-
98,634.92
98,634.92
-
Total Anticipated Revenues
15,678.42
$
3,820,280.87
$
3,830,953.27
$
5,006.02
$
CURRENT FUND
SCHEDULE OF NONBUDGET REVENUES & REVENUE ACCOUNTS RECEIVABLE
FOR THE YEAR ENDED DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
80
EXHIBIT A-8
BALANCE
BALANCE
DECEMBER 31,
DECEMBER 31,
2019
Decreaseses
Increase
2020
Interfunds
Animal Control Fund
41,351.22
$
34,592.82
$
6,130.08
$
12,888.48
Trust Assessment Fund
14,730.29
14,730.29
629.22
629.22
Trust - Other Fund
(97,248.68)
-
-
(97,248.68)
General Capital Fund
240,425.41
240,425.41
98,634.92
98,634.92
Swimming Pool Utility Operating Fund
114,526.13
-
-
114,526.13
Grant Fund
-
-
71,102.87
71,102.87
Total Federal and State Grants Receivable
313,784.37
$
289,748.52
$
176,497.09
$
200,532.94
$
Receivables
411,033.05
$
297,781.62
$
Payables
(97,248.68)
(97,248.68)
Total
313,784.37
$
200,532.94
$
BOROUGH OF MIDDLESEX
STATEMENT OF INTERFUNDS RECEIVABLE/PAYABLE
FOR THE YEAR ENDED DECEMBER 31, 2020
CURRENT FUND
81
EXHIBIT A-9
BALANCE
PAID
AFTER
OR
BALANCE
OPERATIONS
ENCUMBERED
RESERVE
TRANSFERS
CHARGED
LAPSED
Administrative & Executive:
General Administration:
Salaries and Wages
-
$
769.30
$
769.30
-
$
769.30
$
Other Expenses
231.72
1,973.38
2,205.10
344.65
1,860.45
Mayor & Council:
Salaries and Wages
-
0.24
0.24
-
0.24
Other Expenses
200.00
235.21
435.21
-
435.21
Municipal Clerk:
Salaries and Wages
-
6,718.85
6,718.85
175.00
6,543.85
Other Expenses
829.67
3,934.58
4,764.25
2,402.68
2,361.57
Postage for All Departments
Other Expenses
-
5,915.43
5,915.43
-
5,915.43
Printing and Advertising
Other Expenses
-
145.43
1,645.43
1,083.31
562.12
Financial Administration (Treasury):
Salaries and Wages
-
11,040.71
11,040.71
-
11,040.71
Other Expenses
2,094.72
5,296.59
7,391.31
7,387.79
3.52
Annual Audit
Other Expenses
-
35,370.00
35,370.00
22,030.00
13,340.00
Tax Assessment Administration:
Salaries and Wages
-
2,955.79
2,955.79
-
2,955.79
Other Expenses
252.00
200.61
452.61
252.00
200.61
Revenue Administration (Tax Collection):
Salaries and Wages
-
0.03
0.03
-
0.03
Other Expenses
164.54
2,482.44
2,646.98
164.54
2,482.44
Legal Services (Legal Department):
Other Expenses
-
13,153.84
13,153.84
11,820.17
1,333.67
Engineering Services:
Other Expenses
3,302.66
9,723.63
13,026.29
7,197.52
5,828.77
Animal Control and Board of Health
Other Expenses
25.00
808.86
833.86
25.00
808.86
Computer Data Services
Other Expenses
14,441.80
3,196.14
17,637.94
15,425.06
2,212.88
Purchasing Agent
Other Expenses
67.72
1,410.72
1,478.44
67.72
1,410.72
LAND USE ADMINISTRATION
Environmental Legal & Engineering Services and Costs
Other Expenses
-
5,043.25
5,043.25
-
5,043.25
Planning Board
Salaries and Wages
-
1,150.00
1,150.00
-
1,150.00
Other Expenses
640.00
11,985.20
12,625.20
2,627.50
9,997.70
Zoning Board of Adjustment
Salaries and Wages
-
1,900.00
1,900.00
-
1,900.00
Other Expenses
140.00
3,206.14
3,346.14
1,065.00
2,281.14
Code Enforcement
Salaries and Wages
-
7,718.99
7,718.99
-
7,718.99
Other Expenses
376.39
2,990.69
3,367.08
376.39
2,990.69
INSURANCE
Temporary Disability Insurance
-
2,946.84
2,946.84
-
2,946.84
Long-Term Disability Insurance
-
1,736.11
1,736.11
-
1,736.11
Workmen's Compensation
342.51
342.51
-
342.51
Employees Group Insurance
420.00
333,072.57
301,992.57
420.00
301,572.57
BOROUGH OF MIDDLESEX
SCHEDULE OF 2019 APPROPRIATION RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2020
82
EXHIBIT A-9
BALANCE
PAID
AFTER
OR
BALANCE
OPERATIONS
ENCUMBERED
RESERVE
TRANSFERS
CHARGED
LAPSED
BOROUGH OF MIDDLESEX
SCHEDULE OF 2019 APPROPRIATION RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2020
PUBLIC SAFETY
Police Department
Salaries and Wages
-
131,706.24
131,706.24
4,611.66
127,094.58
Other Expenses
7,941.22
28,896.59
36,837.81
7,569.49
29,268.32
Juvenile Conference Committee
Salaries and Wages
-
0.08
0.08
-
0.08
Other Expenses
-
250.00
250.00
-
250.00
Office of Emergency Management
Other Expenses
1,056.00
7,871.05
8,927.05
831.46
8,095.59
Fire Department
Other Expenses
22,247.30
3,062.04
25,309.34
20,830.13
4,479.21
Hazardous Waste Facilities Tax-
Other Expenses
-
2,000.00
2,000.00
-
2,000.00
Fire Hydrant Fees
Other Expenses
-
30,003.61
30,003.61
16,320.00
13,683.61
Municipal Prosecutor's Office
Salaries and Wages
2,033.37
-
2,033.37
2,033.37
-
Municipal Court
Salaries and Wages
545.00
891.55
1,436.55
545.00
891.55
Other Expenses
300.00
5,742.57
6,042.57
398.86
5,643.71
PUBLIC WORKS
Road Repairs and Maintenance
Salaries and Wages
-
22,220.03
22,220.03
-
22,220.03
Other Expenses
5,901.70
30,534.70
36,436.40
8,526.99
27,909.41
Shade Tree Commission
-
Salaries and Wages
-
130.12
130.12
-
130.12
Other Expenses
14,550.00
191.16
14,741.16
14,400.00
341.16
Solid Waste Collection
Salaries and Wages
-
8,922.00
8,922.00
-
8,922.00
Garbage and Trash Removal
Salaries and Wages
-
10,844.37
10,844.37
-
10,844.37
Other Expenses
2,647.90
6,839.20
9,487.10
2,261.75
7,225.35
Community Services Act
(Condominium Community Costs)
Other Expenses
-
415.39
415.39
(6,834.70)
7,250.09
Building and Grounds
Salaries and Wages
-
53.44
53.44
-
53.44
Other Expenses
11,577.78
27,264.27
38,842.05
11,396.73
27,445.32
Rental of Rescue Squad Building
Other Expenses
1,200.00
-
1,200.00
1,200.00
-
HEALTH AND HUMAN SERVICES
Animal Control
Other Expenses
-
11,600.00
11,600.00
7,100.00
4,500.00
Title III Senior Medical Transportation-Program Costs
Salaries and Wages
-
11,502.17
11,502.17
-
11,502.17
Title III Information & Assistance-Program Costs
Salaries and Wages
-
9,150.20
9,150.20
-
9,150.20
PARKS AND RECREATION
Recreation Services and Programs
Salaries and Wages
-
9,449.63
9,449.63
-
9,449.63
Other Expenses
1,679.01
2,560.20
4,239.21
1,704.75
2,534.46
Parks and Playgrounds
Salaries and Wages
-
10,370.41
10,370.41
-
10,370.41
Other Expenses
5,133.52
8,449.43
13,582.95
2,158.96
11,423.99
Celebration of Public Events
83
EXHIBIT A-9
BALANCE
PAID
AFTER
OR
BALANCE
OPERATIONS
ENCUMBERED
RESERVE
TRANSFERS
CHARGED
LAPSED
BOROUGH OF MIDDLESEX
SCHEDULE OF 2019 APPROPRIATION RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2020
Other Expenses
1,152.39
3,677.80
4,830.19
1,350.27
3,479.92
Senior Citizens Bus Transportation
Salaries and Wages
-
5,329.00
5,329.00
-
5,329.00
Other Expenses
252.58
1,507.20
1,759.78
248.58
1,511.20
Senior Citizen Coordinator
Salaries and Wages
-
75.03
75.03
-
75.03
Other Expenses
188.23
4,591.54
4,779.77
188.23
4,591.54
OTHER COMMON OPERATING FUNCTIONS-
UNCLASSIFIED
Accumulated Sick Leave Compensation
Salaries and Wages
-
6,700.88
6,700.88
-
6,700.88
Housing and Communitiy Advisory Board
Salaries and Wages
-
375.00
375.00
-
375.00
Other Expenses
-
100.00
100.00
-
100.00
Beautification Committee
Other Expenses
-
120.00
120.00
-
120.00
Construction Department
Salaries and Wages
-
1,016.18
1,016.18
-
1,016.18
Other Expenses
607.15
3,509.43
4,116.58
551.96
3,564.62
Multi Family Solid Waste Collection
Other Expenses
-
1,036.15
1,036.15
-
1,036.15
UTILITY EXPENSES AND BULK PURCHASES
Electricity
-
9,999.93
9,999.93
9,621.16
378.77
Street Lighting
-
26,486.21
26,486.21
19,995.74
6,490.47
Telephone (Excluding Equipment Acquis.)
-
11,454.70
11,454.70
5,347.39
6,107.31
Water
-
7,728.39
7,728.39
3,095.44
4,632.95
Gas (Natural or Propane)
-
12,245.07
12,245.07
3,384.57
8,860.50
Fuel Oil (Diesel Fuel)
-
10,791.94
10,791.94
5,346.06
5,445.88
Sewer Processing and Disposal
Salaries and Wages
-
4,291.03
4,291.03
-
4,291.03
Other Expenses
2,257.05
1,548.63
3,805.68
1,570.82
2,234.86
LANDFILL/SOLID WASTE DISPOSAL COSTS
Landfill Fees
Other Expenses
10,633.23
14,943.68
55,576.91
52,770.11
2,806.80
CODE ENFORCEMENT AND ADMINISTRATION
Total Operations Within "CAPS"
115,089.65
985,872.32
1,100,961.97
271,389.11
829,572.86
Contingent
-
3,468.13
3,468.13
130.00
3,338.13
Total Operations Including Contingent Within "CAPS"
115,089.65
989,340.45
1,104,430.10
271,519.11
832,910.99
Statutory Expenditures:
Social Security System (O.A.S.I.)
-
5,102.43
5,102.43
-
5,102.43
Defined Contribution Retirement Program (DCRP)
-
1,418.12
1,418.12
1,036.74
381.38
Total General Appropriations for
Municipal Purposes Within "CAPS"
115,089.65
995,861.00
1,110,950.65
272,555.85
838,394.80
84
EXHIBIT A-9
BALANCE
PAID
AFTER
OR
BALANCE
OPERATIONS
ENCUMBERED
RESERVE
TRANSFERS
CHARGED
LAPSED
BOROUGH OF MIDDLESEX
SCHEDULE OF 2019 APPROPRIATION RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2020
OPERATIONS EXCLUDED FROM "CAPS":
Middlesex County Utilities Authority Sewerage Treatment
Contractual
108,154.67
2,149.57
110,304.24
108,154.67
2,149.57
Piscataway Sewerage Authority - Share of Costs
-
2,517.34
2,517.34
-
2,517.34
Stormwater Pollution Programs: NJDES/Stormwater Permit
Other Expenses
-
3,000.00
3,000.00
-
3,000.00
Middlesex County Improvement Authority
County Curbside Collection Program
9,790.37
11,788.84
21,579.21
19,580.74
1,998.47
Total Operations - Excluded from "CAPS"
117,945.04
19,455.75
137,400.79
127,735.41
9,665.38
Total General Appropriations
233,034.69
$
1,015,316.75
$
1,248,351.44
400,291.26
848,060.18
85
EXHIBIT A-10
Balance - December 31, 2019
49,458.18
$
Increased by:
Sewer Flow Charges:
User Charges
957,368.83
$
957,368.83
1,006,827.01
Decreased by:
Collected - Current Year
983,693.63
Balance - December 31, 2020
23,133.38
$
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF SEWER FLOW CHARGES RECEIVABLE
FOR THE YEAR ENDED DECEMBER 31, 2020
86
EXHIBIT A-11
Balance, December 31, 2019
49,191.31
$
Increased by:
Allowable Deductions per
Tax Billings
102,250.00
$
2020 Sr. Citizens and Vet.
Ded. Allowed by Collector
500.00
102,750.00
Subtotal
151,941.31
Decreased by:
Deductions Disallowed By Collector - 2020
2,345.90
Deductions Disallowed By Collector - Prior Years
4,122.61
Cash Received
99,139.72
105,608.23
Balance, December 31, 2020
46,333.08
$
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF DUE FROM/(TO) STATE OF NEW JERSEY
SENIOR CITIZENS & VETERANS DEDUCTIONS
FOR THE YEAR ENDED DECEMBER 31, 2020
87
EXHIBIT A-12
Balance, December 31, 2019
419,307.69
$
Increased by:
Transfer from Current Year Taxes
17,300.01
$
Transfer from PY Taxes
-
17,300.01
Subtotal
436,607.70
Decreased by:
Payments
20,723.00
Balance, December 31, 2020
415,884.70
$
EXHIBIT A-13
Balance, December 31, 2019
-
$
Increased by:
County Share of 2020 Levy:
County Tax
5,559,178.04
$
County Open Space Fund Tax
462,856.12
County Portion of Added & Omitted Taxes
4,706.23
6,026,740.39
Subtotal
6,026,740.39
Decreased by:
Payments
6,026,740.39
Balance December 31, 2020
-
$
FOR THE YEAR ENDED DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF TAX TITLE LIENS
FOR THE YEAR ENDED DECEMBER 31, 2020
SCHEDULE OF DUE COUNTY TAXES
88
EXHIBIT A-14
BALANCE
BALANCE
DECEMBER 31,
TRANSFER FROM/(TO)
CASH
CASH
DECEMBER 31,
2019
BUDGET
RECEIPTS
DISBURSEMENTS
2020
Accounts Payable:
Vendor Accounts Payable
100,253.47
$
-
$
100,253.47
$
Marriage License Filing Fees
550.00
-
2,350.00
1,675.00
1,225.00
State Training Fees
13,033.00
-
54,573.00
46,084.00
21,522.00
Subtotal
113,836.47
-
56,923.00
47,759.00
123,000.47
Reserve for:
Codification of Ordinances
6,389.15
-
-
-
6,389.15
FEMA/NJDEP Buyout
171.76
-
-
-
171.76
Master Plan
1,161.96
-
-
-
1,161.96
Tax Appeals
30,000.00
-
-
5,503.80
24,496.20
Sewer Overpayment
172.49
-
-
-
172.49
Farmers Market
215.00
-
-
-
215.00
RAB Payments
500.00
-
-
-
500.00
Other Liens
12.00
-
21,935.85
21,912.85
35.00
Sale of Assets - Cell Tower
614,644.96
(600,000.00)
-
-
14,644.96
Subtotal
653,267.32
(600,000.00)
21,935.85
27,416.65
47,786.52
Total
767,103.79
$
(600,000.00)
$
78,858.85
$
75,175.65
$
170,786.99
$
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF CHANGES IN VARIOUS ACCOUNTS PAYABLES & RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2020
89
EXHIBIT A-15
Balance December 31, 2019
Deferred School Taxes
12,568,492.00
$
School Taxes Payable
555,868.00
13,124,360.00
Increased by:
Levy School Year July 1, 2019 to
26,438,319.00
June 30, 2020
Subtotal
39,562,679.00
Decreased by:
School Taxes Requirement -
26,271,447.00
Calendar Year Taxes Payable
Balance December 31, 2020
School Taxes Payable
722,740.00
$
Deferred School Taxes
12,568,492.00
13,291,232.00
$
2020 Liability for Local School District Tax
Levy for School Year July 1, 2019
to June 30, 2020
26,438,319.00
$
Add:
School Tax Deferred - December 31, 2019
12,568,492.00
39,006,811.00
Less:
School Tax Deferred - December 31, 2020
12,568,492.00
Amount Charged to 2020 Operations
26,438,319.00
$
CURRENT FUND
SCHEDULE OF LOCAL DISTRICT SCHOOL TAXES PAYABLE - DEFERRED SCHOOL TAXES
FOR THE YEAR ENDED DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
90
EXHIBIT A-16
BALANCE
2020
TRANSFER FROM
BALANCE
DECEMBER 31,
BUDGET REVENUE
COLLECTED
UNAPPROPRIATED
DECEMBER 31,
2019
REALIZED
2020
RESERVE
CANCELLED
2020
Middlesex County - Info. Assis & Transp. Assist -
Older American Act of 1965
7,910.00
$
-
$
7,658.00
$
-
$
-
$
252.00
$
Middlesex County Open Space
667,631.79
-
-
-
-
667,631.79
Municipal Alliance on Alcoholism and Drug Abuse-2018
5,280.25
-
-
-
-
5,280.25
Municipal Alliance on Alcoholism and Drug Abuse-2019
16,783.15
-
10,674.49
-
-
6,108.66
N.J. Div of Highway Traffic Safety - 2018 Udrive, Utext, Upay
6,600.00
-
-
-
-
6,600.00
Body Armor Replacement Grant - CY
-
3,101.97
3,101.97
-
-
-
Clean Communities Program
-
26,323.50
26,323.50
-
-
-
Community Development Block Grant
CDBG- County HUD Funds (2012/2013-2016/2017)
8,450.15
-
-
-
-
8,450.00
CDBG- County HUD Funds (2017/2018)
15,346.00
-
-
-
-
15,346.00
CDBG- County HUD Funds -Adjustment
15,346.00
-
-
-
-
15,346.00
CDBG- County HUD Funds (2018/2019)
1,249.98
-
-
-
-
1,250.00
CDBG- County HUD Funds (2019/2020)
63,486.00
-
-
-
-
63,486.00
CDBG- County HUD Funds (2020/2021)
-
63,854.00
-
-
-
63,854.00
Drunk Driving Enforcement Fund
-
6,493.53
-
6,493.53
-
-
Middlesex County - Info. Assis & Transp. Assist -
Older American Act of 1965
-
16,500.00
11,345.00
-
-
5,155.00
Recycling Tonnage Grant
26,050.98
19,834.48
19,834.48
-
-
26,050.98
CARES ACT
-
73,256.63
73,256.63
-
-
-
Municipal Alliance on Alcoholism and Drug Abuse-2020
-
23,328.28
5,831.48
-
13,416.00
4,080.80
Total Federal and State Grants Receivable
834,134.30
$
232,692.39
$
158,025.55
$
6,493.53
$
13,416.00
$
888,891.48
$
Original Budget
129,277.98
$
Chapter 159
103,414.41
Total
232,692.39
$
SCHEDULE OF FEDERAL AND STATE GRANTS RECEIVABLE
FOR THE YEAR ENDED DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
PROGRAM
91
EXHIBIT A-17
TRANSFERRED
BALANCE
FROM 2020
TRANSFER FROM
RESERVE
BALANCE
DECEMBER 31,
BUDGET
RESERVE FOR
FOR
TRANSFER/
DECEMBER 31,
2019
APPROPRIATION
ENCUMBRANCES
EXPENDED
ENCUMBRANCES
CANCELED
2020
Year 2005
N.J. Hepatitis "B" Grant
2,549.00
$
-
$
-
$
-
$
-
$
-
$
2,549.00
$
Subtotal
2,549.00
-
-
-
-
-
2,549.00
Year 2006
Livable Communities Grant
24.43
-
-
-
-
-
24.43
County of Middlesex - Victor Crowell Park
198,625.66
-
-
-
-
-
198,625.66
Subtotal
198,650.09
-
-
-
-
-
198,650.09
Year 2008
County of Middlesex - Mountain View Park
3,745.75
-
-
-
-
-
3,745.75
Subtotal
3,745.75
-
-
-
-
-
3,745.75
Year 2011
N.J. Clean Communities Grant
134.36
-
-
134.36
-
-
-
Alcohol Education & Rehab
1,121.54
-
-
-
-
-
1,121.54
Subtotal
1,255.90
-
-
134.36
-
-
1,121.54
Year 2012
Haz-Mat Grant
136.44
-
-
-
-
-
136.44
CDBG- Manhole Retrofit
139.00
-
-
-
-
-
139.00
Middlesex County - Mountainview Park
119,386.51
-
-
-
-
-
119,386.51
N.J. Alcohol Education & Rehabilitation - Municipal Court
161.80
-
-
-
-
-
161.80
N.J. Clean Communities Grant
3,568.19
-
4,333.30
7,901.49
-
-
-
Older Americans Act - Information Assist
167.44
-
-
-
-
-
167.44
Subtotal
123,559.38
-
4,333.30
7,901.49
-
-
119,991.19
Year 2013
CDBG- Lincoln Fire House Doors
800.00
-
-
-
-
-
800.00
CDBG- Passive Improvements
365.15
-
-
-
-
-
365.15
N.J. Alcohol Education & Rehabilitation - Municipal Court
53.96
-
-
-
-
-
53.96
Subtotal
1,219.11
-
-
-
-
-
1,219.11
Year 2014
N.J. Alcohol Education & Rehabilitation - Municipal Court
52.77
-
-
-
-
-
52.77
Forestry Grant Match
875.00
-
-
-
-
-
875.00
N.J. Clean Communities Grant
1,726.90
-
-
1,695.45
-
-
31.45
Subtotal
2,654.67
-
-
1,695.45
-
-
959.22
Year 2015
Municipal Alliance on Alcoholism and Drug Abuse
575.26
-
-
-
-
-
575.26
Subtotal
575.26
-
-
-
-
-
575.26
Year 2016
-
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
CDBG- Senior Center Improvements
7,146.00
-
-
-
-
-
7,146.00
DWI - Municipal Court
58.93
-
-
-
-
-
58.93
Body Armor Replacement Fund
1,696.13
-
-
1,696.13
-
-
-
Middlesex County Open Space
26,087.80
-
213,868.57
48,403.17
61,046.61
-
130,506.59
Subtotal
96,111.64
-
213,868.57
89,894.49
61,046.61
-
159,039.11
Year 2017
Body Armor Replacement Fund
2,990.70
-
-
1,389.30
-
-
1,601.40
Drunk Driving Enforcement Fund
1,719.62
-
42.84
1,734.21
28.25
-
(0.00)
Clean Communities Grant
3,568.42
-
-
3,350.82
-
-
217.60
Municipal Alliance on Alcoholism and Drug Abuse
41,930.00
-
-
13,956.32
-
-
27,973.68
N.J. Alcohol Education & Rehabilitation - Municipal Court
64.34
-
-
-
-
-
64.34
Older Americans Act - Information Assist
20,950.00
-
-
-
-
-
20,950.00
Subtotal
71,223.08
-
42.84
20,430.65
28.25
-
50,807.02
FOR THE YEAR ENDED DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
FEDERAL AND STATE GRANT FUND
SCHEDULE OF RESERVES FOR STATE AND FEDERAL GRANTS
AND MATCHING FUNDS - APPROPRIATED
92
EXHIBIT A-17
TRANSFERRED
BALANCE
FROM 2020
TRANSFER FROM
RESERVE
BALANCE
DECEMBER 31,
BUDGET
RESERVE FOR
FOR
TRANSFER/
DECEMBER 31,
2019
APPROPRIATION
ENCUMBRANCES
EXPENDED
ENCUMBRANCES
CANCELED
2020
FOR THE YEAR ENDED DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
FEDERAL AND STATE GRANT FUND
SCHEDULE OF RESERVES FOR STATE AND FEDERAL GRANTS
AND MATCHING FUNDS - APPROPRIATED
Year 2018
Body Armor Replacement Fund
3,320.96
-
-
-
-
-
3,320.96
Clean Communities Grant
255.56
-
-
-
-
-
255.56
CDBG
12,237.94
-
-
-
-
-
12,237.94
Drunk Driving Enforcement
6,156.73
-
-
1,575.39
140.20
-
4,441.14
Municipal Alliance on Alcoholism and Drug Abuse
-
-
-
-
-
-
-
N.J. Alcohol Education & Rehabilitation - Municipal Court
2,196.67
-
-
-
-
-
2,196.67
Older Americans Act - Information Assist
552.85
-
-
-
-
-
552.85
Subtotal
24,720.71
-
-
1,575.39
140.20
-
23,005.12
Year 2019
Body Armor Replacement Fund
5,367.83
-
-
5,259.07
-
-
108.76
CDBG
-
Senior Nutrition
7,500.00
-
-
7,500.00
-
-
-
Senior Van Driver
7,500.00
-
-
1,593.00
-
-
5,907.00
Code Enforcement
7,500.00
-
-
7,500.00
-
-
-
Senior Coordinator
11,075.00
-
-
11,075.00
-
-
-
Senior Center Improvements
29,911.00
-
-
-
-
-
29,911.00
Clean Communities Grant
23,307.90
-
-
-
-
-
23,307.90
Clean Communities Grant-CH 159
29,194.76
-
-
-
-
-
29,194.76
DDEF
1,744.50
-
-
-
-
-
1,744.50
Municipal Alliance on Alcoholism and Drug Abuse
10,284.81
-
2,310.00
10,957.01
-
-
1,637.80
Municipal Alliance Match Grant
6,241.25
-
-
6,241.25
-
-
-
N.J. Alcohol Education & Rehabilitation - Municipal Court
562.62
-
-
-
-
-
562.62
Recycling Tonnage Grant
24,008.59
-
2,042.39
25,714.78
-
-
336.20
Subtotal
164,198.26
-
4,352.39
75,840.11
-
-
92,710.54
Year 2020
Recycling Tonnage Grant
-
19,834.48
-
1,924.00
2,385.57
-
15,524.91
Community Development Block Grant
-
63,854.00
-
-
-
-
63,854.00
Municipal Alliance on Alcohol & Drug Abuse
-
19,494.00
-
-
-
13,416.00
6,078.00
Municipal Alliance on Alcohol & Drug Abuse - Match
-
4,873.50
-
-
-
-
4,873.50
N.J. Alcohol Education & Rehabilitation - Municipal Court
-
3,834.28
-
-
-
3,834.28
DDEF
-
6,493.53
-
6,493.53
-
-
-
Body Armor Grant
-
3,101.97
-
-
-
-
3,101.97
Older Americans - Information Assistance
-
16,500.00
-
16,500.00
-
-
-
CAREs Act
-
73,256.63
-
73,256.63
-
-
-
Clean Communities Program
-
26,323.50
-
-
-
-
26,323.50
Subtotal
-
237,565.89
-
98,174.16
2,385.57
13,416.00
123,590.16
Total Federal and State Grants
690,462.85
$
237,565.89
$
222,597.10
$
295,646.10
$
63,600.63
$
13,416.00
$
777,963.11
$
93
EXHIBIT A-18
BALANCE
BALANCE
DECEMBER 31, ANTICIPATED
DECEMBER 31,
GRANT
2019
AS REVENUE
2020
State Grants:
Drunk Driving Enforcement Fund
6,493.53
$
6,493.53
$
-
$
Total Grants
6,493.53
$
6,493.53
$
-
$
SCHEDULE OF RESERVES FOR STATE GRANTS - UNAPPROPRIATED
FOR THE YEAR ENDED DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
FEDERAL AND STATE GRANT FUND
94
EXHIBIT A-19
Balance - December 31, 2019
-
$
Increased by:
Interfund Current
4,873.50
4,873.50
Decreased by:
Cash Receipts
1,412.00
Interfund Current
74,564.37
75,976.37
Balance - December 31, 2020
(71,102.87)
$
BOROUGH OF MIDDLESEX
FEDERAL AND STATE GRANT FUND
SCHEDULE OF DUE FROM CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2020
95
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96
TRUST FUND
97
This page intentionally left blank.
98
EXHIBIT B-2
Public
Trust
Animal
Trust-
Escrow
Payroll
Assistance
Assessment
Control
Other
Trust
Fund
Fund
Balance, December 31, 2019
25,990.14
$
54,617.00
$
426,981.86
$
624,722.97
$
142,587.88
$
9,841.34
$
Increased by Receipts:
Due to State of New Jersey
-
774.60
-
-
-
-
Animal License Fees
-
5,339.72
-
-
-
-
Payroll
-
-
-
-
9,589,240.50
-
Various Receipts
-
-
502,919.36
564,014.30
-
-
Interfund Receipts
629.22
-
-
-
-
-
Total Receipts
629.22
6,114.32
502,919.36
564,014.30
9,589,240.50
-
Decreased by Disbursements:
Animal Control Expenditures
-
425.76
-
-
-
-
Due to State of New Jersey
-
774.60
-
-
-
-
Payroll
-
-
-
-
9,564,522.36
-
Interfund Disbursment
14,730.29
34,592.82
-
-
-
-
Various Disbursements
-
-
223,040.22
169,835.06
-
5.30
Total Disbursements
14,730.29
35,793.18
223,040.22
169,835.06
9,564,522.36
5.30
Balance, December 31, 2020
11,889.07
$
24,938.14
$
706,861.00
$
1,018,902.21
$
167,306.02
$
9,836.04
$
BOROUGH OF MIDDLESEX
TRUST FUND
ANALYSIS OF CASH AND INVESTMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
99
EXHIBIT B-3
BALANCE
ORD
IMPROVEMENT
BALANCE
BALANCE
PLEDGED TO
NO.
DESCRIPTION
DEC. 31, 2019
DEC. 31, 2020
GENERAL CAPITAL
1106
Curbs and Gutters
1,470.00
$
1,470.00
$
1,470.00
$
SCHEDULE OF ASSESSMENT LIENS
FOR THE YEAR ENDED DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
100
EXHIBIT B-4
13,264.58
$
Increased By:
Fees Collected
5,339.72
$
5,339.72
18,604.30
Decreased By:
Statutory Excess due to Current Fund
6,130.08
Expenditures Under R.S. 4:19-15.11
425.76
6,555.84
12,048.46
$
2018 Fees
6,348.18
$
2019 Fees
5,700.28
12,048.46
$
Balance, December 31, 2020
BOROUGH OF MIDDLESEX
COUNTY OF MIDDLESEX, NEW JERSEY
ANIMAL CONTROL TRUST FUND
SCHEDULE OF RESERVE FOR ANIMAL CONTROL FUND EXPENDITURES
FOR THE YEAR ENDED DECEMBER 31, 2020
Balance, December 31, 2019
101
EXHIBIT B-5
1.20
$
Increased By:
2020 License Fees
774.60
775.80
Decreased By:
Payments
774.60
1.20
$
Balance, December 31, 2020
BOROUGH OF MIDDLESEX
COUNTY OF MIDDLESEX, NEW JERSEY
ANIMAL CONTROL FUND
SCHEDULE OF DUE TO STATE OF NEW JERSEY DEPARTMENT OF HEALTH
FOR THE YEAR ENDED DECEMBER 31, 2020
Balance, December 31, 2019
102
EXHIBIT B-6
Balance December 31, 2019
7,164.08
$
Balance December 31, 2020
7,164.08
$
EXHIBIT B-7
Balance December 31, 2019
14,730.29
$
Increased by:
Interest Earned
629.22
Subtotal
15,359.51
Decreased by:
Cash Disbursements
14,730.29
Balance December 31, 2020
629.22
$
FOR THE YEAR ENDED DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
ASSESSMENT TRUST FUND
SCHEDULE OF DUE TO GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2020
SCHEDULE OF DUE TO CURRENT FUND
ASSESSMENT TRUST FUND
103
EXHIBIT B-8
BALANCE
BALANCE
DECEMBER 31,
DECEMBER 31,
2019
RECEIPTS
DISBURSEMENTS
2020
Other Trust Funds:
Reserve for Unemployment Insurance
194,846.61
$
2,072.31
$
4,301.88
$
192,617.04
$
Miscellaneous Reserves:
Affordable Housing
100,333.69
-
-
100,333.69
Commodity Resale Program
Gasoline - Borough of Dunellen
93,604.95
72,705.94
10,190.09
156,120.80
Developers Escrow Unclaimed Funds
15,812.00
-
-
15,812.00
Development
28,866.24
-
4,198.70
24,667.54
Federal Asset Forfeitures
4,836.91
-
-
4,836.91
Municipal Law Enforcement Trust
18,515.30
1,769.14
1,320.00
18,964.44
Older Americans Act
2,670.18
4,290.00
5,624.00
1,336.18
Outside Police Services
15,556.36
105,860.43
112,643.63
8,773.16
Police Found Money
3,958.24
52.00
659.88
3,350.36
Parking Offense Adjudication Act
3,930.50
-
-
3,930.50
Police Application Fees
318.85
-
-
318.85
Public Defender Fees
507.50
1,200.00
-
1,707.50
Police Communities Education
4,730.64
-
-
4,730.64
Premium on Tax Sale
133,900.00
230,600.00
36,600.00
327,900.00
Police Memorial Fund
50.00
-
-
50.00
Police Donations
6,298.21
1,100.00
494.98
6,903.23
Police - DARE
1,635.00
-
-
1,635.00
Police 911 Fund
19.84
-
-
19.84
Recreation Fund
119,236.04
16,470.00
31,380.71
104,325.33
Recycling Trust
24,280.94
14,141.09
12,714.35
25,707.68
Restitution
5,731.10
51.89
-
5,782.99
Sanitary Sewer
880.00
-
-
880.00
Senior Assisted Transportation
9,164.76
395.00
327.00
9,232.76
Special Inspection
3,672.28
-
-
3,672.28
Street Opening Deposits
138,845.81
6,500.00
875.00
144,470.81
Third Party Outside Lien Redemption
97,602.44
97,602.44
Tree Replacement Fund
1,760.50
45,711.56
1,710.00
45,762.06
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
1,047,017.55
$
502,919.36
$
223,040.22
$
1,326,896.69
$
BOROUGH OF MIDDLESEX
TRUST FUND - OTHER
SCHEDULE OF RESERVES ACTIVITY
FOR THE YEAR ENDED DECEMBER 31, 2020
104
EXHIBIT B-9
BALANCE
BALANCE
DECEMBER 31,
DECEMBER 31,
2019
RECEIPTS
DISBURSEMENTS
2020
Developers' Escrow - Water & Soil
20,062.00
$
-
$
-
$
20,062.00
$
Reserve for Various Deposits
604,660.97
564,014.30
169,835.06
998,840.21
Total
624,722.97
$
564,014.30
$
169,835.06
$
1,018,902.21
$
BOROUGH OF MIDDLESEX
TRUST FUND - OTHER
SCHEDULE OF DEVELOPERS ESCROW
FOR THE YEAR ENDED DECEMBER 31, 2020
105
EXHIBIT B-10
Balance December 31, 2019
9,841.71
$
Increased by:
Cash Receipts-Interest
Subtotal
9,841.71
Decreased by:
Cash Disbursements
5.30
Balance December 31, 2020
9,836.41
$
BOROUGH OF MIDDLESEX
PUBLIC ASSISTANCE TRUST FUND
SCHEDULE OF PUBLIC ASSISTANCE
FOR THE YEAR ENDED DECEMBER 31, 2020
106
EXHIBIT B-11
Balance December 31, 2019
142,587.88
$
Increased by:
Cash Receipts
9,589,240.50
Subtotal
9,731,828.38
Decreased by:
Cash Disbursements
9,564,522.36
Balance December 31, 2020
167,306.02
$
BOROUGH OF MIDDLESEX
PAYROLL TRUST FUND
SCHEDULE OF PAYROLL RESERVE
FOR THE YEAR ENDED DECEMBER 31, 2020
107
This page intentionally left blank.
108
GENERAL CAPITAL FUND
109
This page intentionally left blank.
110
EXHIBIT C-2
Balance December 31, 2019
2,194,983.85
$
Increased by Receipts:
Grants, Loans and Other Receivables
70,271.38
$
Bond Anticipation Note
6,550,524.00
Capital Improvement Fund
80,000.00
Deferred Charges to Future Taxation-Unfunded
18,410.00
6,719,205.38
Subtotal
8,914,189.23
Decreased by Disbursements:
Bond Anticipation Note
5,282,106.00
Various Reserves
70,271.38
Interfund Receivable
240,425.41
Improvement Authorizations
1,595,292.52
7,188,095.31
Balance December 31, 2020
1,726,093.92
$
CASH AND INVESTMENTS - TREASURER
FOR THE YEAR ENDED DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
SCHEDULE OF GENERAL CAPITAL FUND
111
EXHIBIT C-3
BALANCE
DECEMBER 31, 2020
Grants Receivable
(2,912,642.77)
$
Due from Assessment Trust
(7,164.08)
Due to Current Fund
98,634.92
Due to Grant Fund
23,775.00
Due to Trust Fund
522,787.01
Encumbrance Payable
1,270,876.06
Capital Improvement Fund
23,287.43
Fund Balance
414,486.49
Various Reserves
564,610.19
Excess Financing
15,850.00
Ordinance
Number
Improvement Description
1808-12
Acq and Demolition of Certain Flood Prone Properties
(78,131.56)
1857-14
Improvements to Marlborough Ave (NJDOT - $300,000)
(4,823.27)
1893-16
Various Capital Improvements
40,149.13
1899-16
Various Capital Improvements
82,932.49
1900-16
Milling and Paving of Various Roads
98,968.74
1907-17
Sanitary Sewer Improvements
(921,176.12)
1909-17
South Ave Improvements
(100,000.00)
1920-17
2017 Capital Improvements
47,891.19
1922-17
Warrenville Rd Improvements
(51,438.87)
1924-17
George Ave Improvements
48,729.32
1947-18
Various Capital Improvements
234,976.78
1961-19
Various Capital Improvements
564,147.30
1962-19
Bound Brook
945,915.26
1968-19
2019 Library HVAC & Tax Revaluation
86,171.68
1979-19
Tax Maps, Various Capital Improvements
593,401.42
2002-20
Various Capital Improvements and Acquisition of Various Capital Assets
123,880.77
1,726,094.51
$
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
ANALYSIS OF CASH AND INVESTMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
112
EXHIBIT C-4
Balance December 31, 2019
8,027,076.47
$
Decreased by:
2020 Budget Appropriations:
Bonds Payable
1,248,500.00
$
MCIA Leases
443,822.55
NJEIT
86,841.92
Green Acres Loan
12,182.49
1,791,346.96
Balance December 31, 2020
6,235,729.51
$
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - FUNDED
FOR THE YEAR ENDED DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
113
EXHIBIT C-5
BALANCE
INCREASED BY
BALANCE
BOND
UNEXPENDED
ORDINANCE
DECEMBER 31,
IMPROVEMENT
CASH
DECEMBER 31,
ANTICIPATION
NJEIT
EXCESS
IMPROVEMENT
NUMBER
DESCRIPTION
2019
AUTHORIZATIONS
RECEIPTS
2020
NOTES
NOTE
EXPENDITURES
FINANCING
AUTHORIZATIONS
1808-12
Acq and Demolition of Certain Flood Prone Properties
166,547.55
$
-
$
-
$
166,547.55
$
-
$
-
$
78,131.56
$
-
$
88,415.99
$
1857-14
Improvements to Marlborough Ave
30,400.00
-
-
30,400.00
-
-
4,823.27
-
25,576.73
1893-16
Various Capital Improvements
989,780.00
-
-
989,780.00
989,780.00
-
-
-
-
1907-17
Sanitary Sewer Improvements
2,327,500.00
-
-
2,327,500.00
-
898,891.00
921,176.12
-
507,432.88
1909-17
South Ave Improvements
100,000.00
-
-
100,000.00
-
-
100,000.00
-
-
1920-17
2017 Capital Improvements
1,745,625.00
-
-
1,745,625.00
1,745,625.00
-
-
-
-
1922-17
Warrenville Road Improvements
380,000.00
-
-
380,000.00
175,725.00
-
51,438.87
-
152,836.13
1924-17
George Ave Improvements
488,870.00
-
-
488,870.00
488,870.00
-
-
-
-
1947-18
Various Capital Improvements
1,740,159.24
-
-
1,740,159.24
1,740,159.00
-
0.24
-
-
1961-19
Various Capital Improvements
62,800.00
-
-
62,800.00
62,800.00
-
-
-
-
1962-19
Bound Brook
104,440.00
-
-
104,440.00
104,440.00
-
-
-
-
1975-19
Sewer Study and Improvements
47,500.00
-
-
47,500.00
47,500.00
-
-
-
-
1979-19
Tax Maps, Various Capital Improvements
1,195,625.35
-
15,850.00
1,179,775.35
1,195,625.00
-
0.35
(15,850.00)
-
2002-20
Various Capital Improvemens
-
1,442,149.50
2,560.00
1,439,589.50
-
-
-
-
1,439,589.50
Total
9,379,247.14
$
1,442,149.50
$
18,410.00
$
10,802,986.64
$
6,550,524.00
$
898,891.00
$
1,155,570.41
$
(15,850.00)
$
2,213,851.23
$
Improvement Authorization Unfunded Per Exh. C-08
4,307,548.61
$
Less: Unexpended proceeds of Bond Anticipation:
1893-16
40,149
1920-17
47,891
1924-17
48,729
1947-18
234,977
1961-19
96,463
1962-19
945,915
1968-19
86,172
1979-19
593,401
2,213,851.23
$
FOR THE YEAR ENDED DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
ANALYSIS OF BALANCE
114
EXHIBIT C-6
Balance December 31, 2019
7,347.93
$
Increased by:
2020 Budget Appropriation - Current Fund
80,000.00
Subtotal
7,347.93
Decreased by:
Appropriated to Finance Improvements
64,060.50
Balance December 31, 2020
23,287.43
$
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF RESERVE CAPITAL IMPROVEMENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2020
115
EXHIBIT C-7
Balance December 31, 2019
2,610,587.02
$
Increased by:
Grant Award
525,000.00
Subtotal
3,135,587.02
Decreased by:
Grant Received
70,271.38
$
Cancellation
152,672.87
222,944.25
Balance, December 31, 2020
2,912,642.77
$
Federal Homeland Security
1643-05
24,000.00
$
Middlesex County
1643-05
35,966.00
Recycling Trust
1676-05
2,350.00
State of NJ DCA - Livable Communities
1688-06
130.00
Federal Homeland Security
1688-06
8,805.00
State of NJ DOT - Beechwood Ave.
1715-07
69,476.44
State of NJ DOT - Greenbrook Rd
1736-08
56,250.00
State of NJ DOT - Beechwood Ave.
1772-10
16,361.77
State of NJ DOT - Parker Street
1797-11
15,238.34
State of NJ OEM
1808-12
140,250.00
Federal Emergency Management Agency (FEMA)
1808-12
26,297.55
Various Capital Improvements (MCIA)
1855-14
125,000.00
State of NJ DOT - Marlborough Avenue
1857-14
22,708.56
State of NJ DOT - Warrenville Road
1893-16
83,478.74
State of NJ DOT - South Avenue
1909-17
100,000.00
Due from Township of Piscataway - South Avenue
1909-17
25,199.16
State of NJ DOT - Runyon Avenue
1947-18
48,371.21
State of NJ DOT- Harris Avenue, Ashland Road, Fischer Avenue 1961-19
557,200.00
State of NJ DOT- Bound Brook Road
1962-19
1,030,560.00
State of NJ DOT-
2002-20
525,000.00
2,912,642.77
$
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF RECEIVABLE
FOR THE YEAR ENDED DECEMBER 31, 2020
ANALYSIS OF BALANCE
116
EXHIBIT C-8
2020
2019
2020
ORDINANCE
IMPROVEMENT
IMPROVEMENT
RESERVE FOR
RESERVE FOR
NUMBER
DESCRIPTION
DATE
AMOUNT
FUNDED
UNFUNDED
AUTHORIZATION
ENCUMBRANCES
CANCELLED
EXPENDED
ENCUMBRANCES
FUNDED
UNFUNDED
1611-04
Improvement to the Sanitary Sewer System
(Infrastructure Trust $1,689,655)
7/13/2004
1,627,000.00
$
176,527.28
$
-
$
-
$
-
$
176,527.28
$
-
$
-
$
-
$
-
$
1687-06
Various Capital Improvements (NJDOT - $200,000)
10/20/2006
1,358,900.00
3,075.53
-
-
-
3,075.53
-
-
-
-
1808-12
Acq and Demolition of Certain Flood Prone Properties
3/27/2012
2,540,000.00
-
88,415.99
-
-
-
-
-
-
88,415.99
1818-12
Various Capital Improvements
8/28/2012
1,116,450.00
40,026.91
-
-
-
40,026.91
-
-
-
-
1842-13
Reconstruction of Fairview Ave (NJDOT - $300,000)
8/27/2013
380,000.00
64,062.83
-
-
-
64,062.83
-
-
-
-
1855-14
Various Capital Improvements (MCIA)
9/9/2014
888,325.00
-
-
-
100,000.00
-
76,575.00
23,425.00
-
-
1857-14
Improvements to Marlborough Ave (NJDOT - $300,000)
9/9/2014
332,000.00
-
25,576.73
-
-
-
-
-
-
25,576.73
1879-15
Various Capital Improvements (MCIA)
7/19/2015
1,176,500.00
231,479.30
-
-
189,837.10
224,626.24
196,690.16
-
-
-
1893-16
Various Capital Improvements
8/9/2016
1,393,000.00
-
51,300.87
-
7,777.34
-
11,151.74
7,777.34
-
40,149.13
1899-16
Various Capital Improvements
10/11/2016
614,202.14
82,932.49
-
-
-
-
-
-
82,932.49
-
1900-16
Milling and Paving of Various Roads
10/11/2016
300,000.00
98,968.74
-
-
-
-
-
-
98,968.74
-
1907-17
Sanitary Sewer Improvements
2/14/2017
2,450,000.00
-
807,685.60
-
514,919.54
-
301,730.86
513,441.40
-
507,432.88
1920-17
2017 Capital Improvements
5/23/2017
1,837,500.00
-
50,667.19
-
92,646.27
-
42,323.03
53,099.24
-
47,891.19
1922-17
Warrenville Rd Improvements
7/25/2017
400,000.00
-
152,836.13
-
-
-
-
-
-
152,836.13
1924-17
George Ave Improvements
9/19/2017
514,600.00
-
48,729.32
-
-
-
-
-
-
48,729.32
1947-18
Various Capital Improvements
8/14/2018
1,981,165.00
-
166,697.16
-
124,500.03
-
40,274.16
15,946.25
-
234,976.78
1961-19
Various Capital Improvements
6/11/2019
620,000.00
501,347.30
62,800.00
-
33,662.60
-
31,639.50
2,023.10
467,684.70
96,462.60
1962-19
Bound Brook
6/112019
1,135,000.00
935,492.50
104,440.00
-
83,272.50
-
41,826.96
135,462.78
-
945,915.26
1968-19
2019 Library HVAC & Tax Revaluation
8/13/2019
344,816.68
86,171.68
-
-
247,195.00
-
28,000.00
219,195.00
-
86,171.68
1975-19
Sewer Study and Improvements
9/10/2019
50,000.00
-
-
-
50,000.00
-
50,000.00
-
-
-
1979-19
Tax Maps, Various Capital Improvements
10/22/2019
1,258,553.00
-
747,743.45
-
453,505.30
-
515,072.73
92,774.60
-
593,401.42
2002-20
Various Acquisitions and Improvements
6/23/2020
2,031,210.00
-
-
2,031,210.00
-
-
260,008.38
207,731.35
123,880.77
1,439,589.50
Total
2,220,084.56
$
2,306,892.44
$
2,031,210.00
$
1,897,315.68
$
508,318.79
$
1,595,292.52
$
1,270,876.06
$
773,466.70
$
4,307,548.61
$
Capital Improvement Fund
64,060.50
$
Deferred Charges to Future Taxation- Unfunded
1,442,149.50
Grants
525,000.00
2,031,210.00
$
ORDINANCE
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
FOR THE YEAR ENDED DECEMBER 31, 2020
BALANCE DECEMBER 31, 2020
BALANCE DECEMBER 31, 2019
117
EXHIBIT C-9
Ordinance
Balance
Balance
Number
December 31, 2019
Increases
Decreases
December 31, 2020
Reserve for:
Cash or Appropriated Reserves:
Insurance Refund - Landfill (Payment of Bonds)
4,838.08
$
-
$
-
$
4,838.08
$
Payment of Debt Service
98,634.92
-
98,634.92
-
Subtotal
103,473.00
-
98,634.92
4,838.08
Grants, Loans & Other Receivables
New Jersey Environmental Infrastructure Trust
1611-04
58,305.00
-
58,305.00
-
Middlesex County - Cedar Ave
1643-05
56.00
-
-
56.00
State of NJ OEM
1808-12
98,598.63
-
-
98,598.63
Federal Emergency Management Agency (FEMA)
1808-12
67,948.92
-
-
67,948.92
State of NJ DOT - South Avenue
1909-17
100,000.00
-
-
100,000.00
Township of Piscataway - South Avenue
1909-17
95,470.54
-
70,271.38
25,199.16
State of NJ DOT - Runyon Avenue
1947-18
138,053.24
-
-
138,053.24
2014 Loan Reimbursement
129,916.16
-
-
129,916.16
Subtotal
688,348.49
-
128,576.38
559,772.11
791,821.49
$
-
$
227,211.30
$
564,610.19
$
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF VARIOUS RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2020
118
EXHIBIT C-10
ASSESSMENT
TRUST -
GRANT
TOTAL
CURRENT
TRUST
OTHER
FUND
Balance December 31, 2019
Due From
7,164.08
$
-
$
7,164.08
$
-
$
-
$
Due To
786,987.43
240,425.41
-
522,787.01
23,775.00
Increased by:
Cash Disbursed
240,425.41
Subtotal
-
240,425.41
-
-
-
Decreased by:
Current Fund Revenue
98,634.92
98,634.92
Subtotal
98,634.92
98,634.92
-
-
-
Balance December 31, 2020
Due From
7,164.08
$
-
$
7,164.08
$
-
$
-
$
Due To
645,196.93
98,634.92
-
522,787.01
23,775.00
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF INTERFUNDS
FOR THE YEAR ENDED DECEMBER 31, 2020
119
EXHIBIT C-11
AMOUNT
BALANCE
PAID BY
BALANCE
OF
FEES
INTEREST
DECEMBER 31,
BUGET
DECEMBER 31,
PROJECT DESCRIPTION
LOAN
PAYABLE
DATE
AMOUNT
RATE
2019
APPROPRIATION
2020
Capital Equipment - 2013
2,900,567.38
$
56,064.13
$
8/15/2021
205,000.00
4.000%
840,000.00
$
200,000.00
$
640,000.00
$
8/15/2022
215,000.00
4.000%
8/15/2023
220,000.00
4.000%
Capital Equipment - 2015
1,146,063.89
6,123.76
243,822.55
243,822.55
-
$
Total
1,083,822.55
$
443,822.55
$
640,000.00
$
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
DECEMBER 31, 2020
SCHEDULE OF CAPITAL LEASES PAYABLE
FOR THE YEAR ENDED DECEMBER 31, 2020
MATURITIES OF LOAN
PRINCIPAL AND INTEREST
MIDDLESEX COUNTY IMPROVEMENT AUTHORITY
120
EXHIBIT C-12
BALANCE
BALANCE
DATE OF
ORIGINAL
INTEREST
DECEMBER 31,
DECEMBER 31,
PURPOSE
ISSUE
ISSUE
DATE
AMOUNT
RATE
2019
DECREASED
2020
General Improvement Bonds of 2010
02/15/10
9,865,000.00
$
965,000.00
$
965,000.00
$
-
$
Refunding Bonds 2019
12/5/2019
3,700,000.00
02/15/21
710,000.00
4.000%
3,700,000.00
-
3,700,000.00
02/15/22
740,000.00
4.000%
02/15/23
745,000.00
5.000%
02/15/24
755,000.00
5.000%
02/15/25
750,000.00
5.000%
General Obligation Bonds of 2015
07/16/15
2,878,000.00
7/15/21
290,500.00
2.000%
1,828,000.00
283,500.00
1,544,500.00
7/15/22
301,000.00
2.000%
7/15/23
308,000.00
2.000%
7/15/24
318,500.00
2.500%
7/15/25
326,500.00
2.500%
Total
6,493,000.00
$
1,248,500.00
$
5,244,500.00
$
OUTSTANDING
DECEMBER 31, 2019
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF GENERAL SERIAL BONDS
FOR THE YEAR ENDED DECEMBER 31, 2020
MATURITIES OF BONDS
121
EXHIBIT C-13
BALANCE
BALANCE
DATE
AMOUNT
DECEMBER 31,
DECEMBER 31,
DESCRIPTION
ISSUE
ISSUE
2019
DECREASED
2020
New Jersey Environmental-Trust Loan
Infrastructure Trust Series 2004 A
8/1/2005
850,000.00
$
239,121.82
$
41,958.12
$
197,163.70
$
New Jersey Environmental-Fund Loan
Infrastructure Trust 2004 A
8/1/2005
844,828.00
167,411.31
44,883.80
122,527.51
Total
406,533.13
$
86,841.92
$
319,691.21
$
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF NJ ENVIRONMENTAL INFRASTRUCTURE TRUST AND FUND LOAN PAYABLE
FOR THE YEAR ENDED DECEMBER 31, 2020
122
EXHIBIT C-14
898,891.00
$
898,891.00
$
Balance, December 31, 2020
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF NEW JERSEY INFRASTRUCTURE BANK LOAN
FOR THE YEAR ENDED DECEMBER 31, 2020
Balance, December 31, 2019
123
EXHIBIT C-15
Original
Balance
Balance
Ordinance
Issue
Date of
Date of
Interest
December 31,
December 31,
Number
Improvement Description
Date
Issue
Maturity
Rate
2019
Increased
Decreased
2020
1893-16
Various Capital Improvements
6/28/2018
6/25/2020
6/24/2021
0.95%
989,780.00
$
989,780.00
$
989,780.00
$
989,780.00
$
1920-17
2017 Capital Improvements
6/28/2018
6/25/2020
6/24/2021
0.95%
1,745,625.00
1,745,625.00
1,745,625.00
1,745,625.00
1922-17
Warrenville Rd Improvements
6/28/2018
6/25/2020
6/24/2021
0.95%
175,725.00
175,725.00
175,725.00
175,725.00
1924-17
George Ave Improvements
6/28/2018
6/25/2020
6/24/2021
0.95%
488,870.00
488,870.00
488,870.00
488,870.00
1947-18
Various Capital Improvements
6/26/2019
6/25/2020
6/24/2021
0.95%
1,882,106.00
1,740,159.00
1,882,106.00
1,740,159.00
1961-19
Various Capital Improvements
6/25/2020
6/25/2020
6/24/2021
0.95%
-
62,800.00
-
62,800.00
1962-19
Bound Brook
6/25/2020
6/25/2020
6/24/2021
0.95%
-
104,440.00
-
104,440.00
1975-19
Sewer Study and Improvements
6/25/2020
6/25/2020
6/24/2021
0.95%
-
47,500.00
-
47,500.00
1979-19
Tax Maps, Various Capital Improvements
6/25/2020
6/25/2020
6/24/2021
0.95%
-
1,195,625.00
-
1,195,625.00
5,282,106.00
$
6,550,524.00
$
5,282,106.00
$
6,550,524.00
$
BOROUGH OF MIDDLESEX
COUNTY OF MIDDLESEX, NEW JERSEY
GENERAL CAPITAL FUND
SCHEDULE OF BOND ANTICIPATION NOTES
FOR THE YEAR ENDED DECEMBER 31, 2020
124
EXHIBIT C-16
BALANCE
PAYMENT
PAYMENT
INTEREST
PRINCIPAL
LOANS
NUMBER
DATE
PAYMENTS
PAYMENTS
PAYABLE
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
952.39
$
31,538.30
$
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
NEW JERSEY GREEN TRUST FUND-1989
FOR THE YEAR ENDED DECEMBER 31, 2020
125
EXHIBIT C-17
GENERAL CAPITAL FUND
AT DECEMBER 31, 2020
BALANCE
BALANCE
ORDINANCE
IMPROVEMENT
DECEMBER 31,
2020
DECEMBER 31,
NUMBER
DESCRIPTION
2019
AUTHORIZATIONS
Decreased
2020
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
1907-17
Sanitary Sewer Improvements
1,428,609.00
-
-
1,428,609.00
1909-17
South Ave Improvements
100,000.00
-
-
100,000.00
1922-17
Warrenville Road Improvements
204,275.00
-
-
204,275.00
1961-19
Various Capital Improvements
62,800.00
-
62,800.00
-
1962-19
Bound Brook
104,440.00
-
104,440.00
-
1975-19
Sewer Study and Improvements
47,500.00
-
47,500.00
-
1979-19
Tax Maps, Various Capital Improvements
1,195,625.35
-
1,195,625.35
-
2002-20
Various Capital Improvements and Acquisition of Various Capital Assets
-
1,442,149.50
2,560.00
1,439,589.50
Total
3,340,196.90
$
1,442,149.50
$
1,412,925.35
$
3,369,421.05
$
BOROUGH OF MIDDLESEX
STATEMENT OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
126
SWIM POOL UTILITY FUND
127
This page intentionally left blank.
128
EXHIBIT D-5
Balance, December 31, 2019
266,176.85
$
3,013.15
$
Increased by Receipts:
Membership Fees
144,264.25
$
-
$
Miscellaneous Revenues
51,906.29
-
Snack Bar Operation
-
10,267.57
Due from Swimming Pool Capital
-
-
Due to Current Fund
-
-
Transfer form Snack Bar Account
4.64
-
Total Receipts
196,175.18
10,267.57
Total
462,352.03
13,280.72
Decreased by Disbursements:
2020 Budget Appropriations
289,203.71
-
2019 Appropriation Reserves
11,148.40
-
Snack Bar Operations
-
10,267.57
Due To Current Fund
-
-
Due to Swimming Pool Capital
-
-
Accrued Interest
-
-
Transfer to Operating Fund
-
4.64
Total Disbursements
300,352.11
10,272.21
Balance, December 31, 2020
161,999.92
$
3,008.51
$
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY
SCHEDULE OF CASH AND INVESTMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020
OPERATING FUND
SNACK BAR ACCOUNT
129
EXHIBIT D-6
BALANCE
DECEMBER 31,
2020
Capital Improvement Fund
7,730.10
$
Due (from)/to Swimming Pool Operating Fund
94,320.11
Fund Balance
2,619.00
Improvement Authorizations
Ordinance
Number
Improvement Description
1771-10
Swim Pool Improvements
(156,330.00)
1852-14
Swim Pool Improvements
51,660.79
-
ANALYSIS OF CASH AND INVESTMENTS
BOROUGH OF MIDDLESEX
SWIMMING POOL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2020
130
EXHIBIT D-7
TRANSFERRED
BALANCE
FROM
BALANCE
DECEMBER 31,
AUTHORIZED
DECEMBER 31,
2019
& UNCOMPLETED
2020
Swimming Pool and Grounds
234,000.00
$
-
$
234,000.00
$
Improvement - 1987
217,721.56
-
217,721.56
Improvement - 1991
65,300.00
-
65,300.00
Improvement - 1997
149,270.00
-
149,270.00
Total
666,291.56
$
-
$
666,291.56
$
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL
FOR THE YEAR ENDED DECEMBER 31, 2020
131
EXHIBIT D-8
BALANCE
BALANCE
ORDINANCE
DECEMBER 31,
FIXED CAPITAL
DECEMBER 31,
NUMBER
IMPROVEMENT DESCRIPTION
AMOUNT
2019
COMPLETED
2020
1771-10
Swim Pool Improvements
350,000.00
$
350,000.00
$
-
$
350,000.00
$
1852-14
Swim Pool Improvements
1,300,000.00
1,300,000.00
-
1,300,000.00
Total
1,650,000.00
$
-
$
1,650,000.00
$
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
FOR THE YEAR ENDED DECEMBER 31, 2020
132
EXHIBIT D-9
Balance December 31, 2019
34,693.93
$
Decreased by:
Cancelled
34,693.93
Balance, December 31, 2020
-
$
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY FUND
SCHEDULE OF ACCOUNTS PAYABLE
FOR THE YEAR ENDED DECEMBER 31, 2020
133
EXHIBIT D-10
BALANCE
AFTER
PAID OR
BALANCE
ENCUMBERED
RESERVED
TRANSFERS
CHARGED
LAPSED
Operations:
Salaries & Wages
-
$
23,902.54
$
23,902.54
$
-
$
23,902.54
$
Other Expenses
12,065.58
16,715.80
28,781.38
11,148.40
17,632.98
Statutory Expenditures:
Contribution to:
Social Security System
-
92.64
92.64
-
92.64
State Unemployment Insurance
-
2,000.00
2,000.00
-
2,000.00
Total
12,065.58
$
42,710.98
$
54,776.56
$
11,148.40
$
43,628.16
$
SCHEDULE OF 2019 APPROPRIATION RESERVES
FOR THE YEAR ENDED DECEMBER 31, 2020
BALANCE DECEMBER 31, 2019
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY OPERATING FUND
134
EXHIBIT D-11
SWIMMING
CURRENT
TOTAL
POOL CAPITAL
FUND
Balance December 31, 2019
Due From
94,320.11
$
94,320.11
$
-
$
Due To
114,526.13
-
114,526.13
Balance December 31, 2020
Due From
94,320.11
$
94,320.11
$
-
$
Due To
114,526.13
-
114,526.13
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY OPERATING FUND
SCHEDULE OF INTERFUNDS RECEIVABLE/PAYABLE
FOR THE YEAR ENDED DECEMBER 31, 2020
135
EXHIBIT D-12
Balance, December 31, 2019
1,116,291.56
$
Increased by:
Bonds Paid by Swim Budget Appropriation
78,528.00
$
Bonds Paid by Current Budget Appropriation
42,972.00
121,500
Balance, December 31, 2020
1,237,791.56
$
EXHIBIT D-13
Balance, December 31, 2020 & 2019
7,730.10
$
SCHEDULE OF CAPITAL IMPROVEMENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR AMORTIZATION
FOR THE YEAR ENDED DECEMBER 31, 2020
SWIMMING POOL UTILITY CAPITAL FUND
136
EXHIBIT D-14
BALANCE
BALANCE
ORDINANCE
DATE OF
DECEMBER 31,
DECEMBER 31,
NUMBER
IMPROVEMENT DESCRIPTION
ORD.
2019
2020
1771-10
Swim Pool Improvements
7/27/2010
100,000.00
$
100,000.00
$
1852-14
Swim Pool Improvements
6/24/2014
65,000.00
65,000.00
165,000.00
$
165,000.00
$
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY CAPITAL FUND
SCHEDULE OF DEFERRED RESERVE FOR AMORTIZATION
FOR THE YEAR ENDED DECEMBER 31, 2020
137
EXHIBIT D-15
SWIMMING
TOTAL
POOL OPERATING
Balance December 31, 2019
Due From
-
$
-
$
Due To
94,320.11
94,320.11
Balance, December 31, 2020
Due From
-
$
-
$
Due To
94,320.11
94,320.11
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY CAPITAL FUND
SCHEDULE OF INTERFUNDS RECEIVABLE/PAYABLE
FOR THE YEAR ENDED DECEMBER 31, 2020
138
EXHIBIT D-16
ORDINANCE
NUMBER
IMPROVEMENT DESCRIPTION
DATE
AMOUNT
FUNDED
UNFUNDED
FUNDED
UNFUNDED
1771-10
Swim Pool Improvements
7/27/2010
350,000.00
$
-
$
93,670.00
$
-
$
93,670.00
$
1852-14
Swim Pool Improvements
6/24/2014
1,300,000.00
51,660.79
-
51,660.79
-
Total
51,660.79
$
93,670.00
$
51,660.79
$
93,670.00
$
DECEMBER 31, 2019
BALANCE
DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
FOR THE YEAR ENDED DECEMBER 31, 2020
BALANCE
139
EXHIBIT D-17
Balance December 31, 2019
7,820.31
$
Decreased by:
Cancellation of Accrued Interest
1,114
Balance December 31, 2020
6,706.56
$
Principal
Outstanding
Interest
12/31/2020
Rate
From
To
Period
Amount
663,500.00
$
2.00%
7/15/2019
12/15/2020
5.5
6,706.56
$
6,706.56
$
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY FUND
SCHEDULE OF ACCRUED INTEREST ON BONDS AND NOTES
FOR THE YEAR ENDED DECEMBER 31, 2020
Analysis of Balance
140
EXHIBIT D-18
BALANCE
BALANCE
DATE OF
ORIGINAL
INTEREST
DECEMBER 31,
DECEMBER 31,
PURPOSE
ISSUE
ISSUE
DATE
AMOUNT
RATE
2019
DECREASED
2020
General Improvement Bonds of 2015
7/16/15
1,235,000.00
$
7/15/21
124,500.00
$
2.000%
785,000.00
$
121,500.00
$
663,500.00
$
7/15/22
129,000.00
2.000%
7/15/23
132,000.00
2.000%
7/15/24
136,500.00
2.000%
7/15/25
141,500.00
2.000%
Total
785,000.00
$
121,500.00
$
663,500.00
$
OUTSTANDING
DECEMBER 31, 2020
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY FUND
SCHEDULE OF SERIAL BONDS
MATURITIES OF BONDS
FOR THE YEAR ENDED DECEMBER 31, 2020
141
EXHIBIT D-19
BALANCE
BALANCE
ORDINANCE
DECEMBER 31,
DECEMBER 31,
NUMBER
IMPROVEMENT DESCRIPTION
2019
2020
1771-10
Swim Pool Improvements
250,000.00
$
250,000.00
$
Total
250,000.00
$
250,000.00
$
SWIMMING POOL UTITLITY OPERATING FUND
BOROUGH OF MIDDLESEX
FOR THE YEAR ENDED DECEMBER 31, 2020
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
142
BOROUGH OF MIDDLESEX
PART II
SCHEDULE OF FINANCIAL STATEMENT FINDINGS -
GOVERNMENT AUDITING STANDARDS
FOR THE YEAR ENDED DECEMBER 31, 2020
143
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144
BOROUGH OF MIDDLESEX
SCHEDULE OF FINANCIAL STATEMENT FINDINGS
FOR THE YEAR ENDED DECEMBER 31, 2020
This section identifies the significant deficiencies, material weaknesses and instances of noncompliance
related to the basic financial statements that are required to be reported in accordance with Government
Auditing Standards and with audit requirements prescribed by the Division of Local Government
Services, Department of Community Affairs, State of New Jersey.
None.
145
BOROUGH OF MIDDLESEX
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
FOR THE YEAR ENDED DECEMBER 31, 2020
This section identifies the status of prior year findings related to the financial statements.
Financial Statement Findings
Finding No. 2019-001
Condition:
Payments in the aggregate to one vendor exceeded the bid threshold during the year ended December 31,
2019.
Current Status:
The finding has been corrected.
FEDERAL AWARDS
N/A – No Federal Single Audit in prior year.
STATE FINANCIAL ASSISTANCE
No Single Audit findings in the Prior Year.
146
BOROUGH OF MIDDLESEX
PART III
LETTER OF COMMENTS AND RECOMMENDATIONS – REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2020
147
This page intentionally left blank.
148
OFFICIALS IN OFFICE AND SURETY BONDS
The following officials were in office at December 31, 2020:
Name
Title
John Madden
Mayor
James Eodice
Council President
Jack Mikolajczyk
Councilmember
Douglas Rex
Councilmember
Amy Flood
Councilmember
Jeremiah Carnes
Councilmember
Martin Quinn
Councilmember
Marcia Karrow
Business Administrator
Caroline Benson
Acting Chief Financial Officer/Treasurer
Darcy Delvecchio
Tax Collector
Lisa Chismar
Municipal Clerk
Merari Gaud
Court Administrator
149
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150
Honorable Mayor and Members
of the Borough Council
Borough of Middlesex
Middlesex, New Jersey 08846
In accordance with requirements prescribed by the Division of Local Government Services, Department
of Community Affairs, State of New Jersey, the following are the General Comments and
Recommendations for the year ended December 31, 2020.
GENERAL COMMENTS:
Contracts and Agreements required to be advertised by (N.J.S.A.40A:11-4)
N.J.S.A.40A:11-4 states every contract or agreement, for the performance of any work or 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 by the
Governing Body of the contracting unit after public advertising for bids and bidding therefore, except as
is provided otherwise in this act or specifically by any other Law. No work, materials or supplies shall be
undertaken, acquired or furnished for a sum exceeding in the aggregate the bid threshold, except by
contract or agreement.
The bid threshold in accordance with N.J.S.A. 40A:11-4 was $40,000 for the months of January through June
2020. As of July 1, 2020, the bid threshold increased to $44,000 for the year ended December 31, 2020.
It is pointed out that the governing body of the municipality has the responsibility of determining whether
the expenditures in any category will exceed the statutory minimum within the fiscal year. Where
question arises as to whether any contract or agreement might result in violation of the statute, the
solicitor's opinion should be sought before a commitment is made.
Inasmuch as the system of records did not provide for an accumulation of payments for categories for the
performance of any work or the furnishing or hiring of any materials or supplies, the results of such an
accumulation could not reasonably be ascertained. Disbursements were reviewed, however, to determine
whether any clear-cut violations existed.
Our examination of expenditures did not reveal any individual payments or contracts in excess of the bid
threshold “for the performance of any work, or the furnishing of any materials, supplies or labor” 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:11-6.
151
www.hfacpas.com
1415 Hooper Avenue, Suite 305, Unit A, Toms River, NJ 08753 • By Appointment Only
1985 Cedar Bridge Avenue, Suite 3, Lakewood, NJ 08701 • Tel: 732.797.1333
194 East Bergen Place, Red Bank, NJ 07701 • Tel: 732.747.0010
Collection of Interest on Delinquent Taxes and Assessments
N.J.S.54:4-67, provides the method for authorizing interest and the maximum rates to be charged for the
nonpayment of taxes or assessments on or before the date when they would become delinquent.
The governing body on January 1, 2020 adopted the following resolution authorizing interest to be
charged on delinquent taxes:
NOW THEREFORE, BE IT RESOLVED, that if said taxes are deemed to be delinquent for non-
payment of taxes, the Tax Collector shall charge eight (8%) percent per annum on the first
$1,500.00 of the delinquency, and eighteen (18%) percent per annum on any amount in excess of
$1,500.00; and
BE IT FURTHER RESOLVED, by the Borough Council of the Borough of Middlesex, that the Tax
Collector shall allow that no interest will be charged on payments received and made by the tenth
calendar day following the date upon which the same became payable; and
BE IT FURTHER RESOLVED, by the Borough Council of the Borough of Middlesex, that the Tax
Collector shall charge, in addition to the interest for delinquent taxes, as noted above, a penalty
of six (6%) percent of the amount of the delinquency in taxes in excess of $10,000.00 to a
taxpayer who fails to pay the delinquency prior to the end of the calendar year.
It appears from an examination of the Collector's record that interest was collected in accordance with the
foregoing resolution.
OTHER COMMENTS (FINDINGS):
None.
RECOMMENDATIONS:
None.
152
Appreciation
We express our appreciation for the assistance and courtesies extended to the members of the audit team.
Respectfully submitted,
HOLMAN FRENIA ALLISON, P. C.
Robert W. Allison
Certified Public Accountant
Registered Municipal Accountant
RMA No. 483
Lakewood, New Jersey
September 30, 2021
153
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"...rior Audit Findings & Questioned Costs as Prepared by Management 146 Letter of Comments and Recommendations -Regulatory Basis Officials in Office and Surety Bonds 149 General Comments 151 Other Comments 152 Recommendations 152 Acknowledgement 153 Part II Part II BOROUGH OF MIDDLESEX COUNTY OF MIDDLESEX AUD..."
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