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2021 Middlesex Borough Municipal Audit

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ISSUED: 8/25/2022

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Executive Summary

The Borough of Middlesex's audit report for the year ending December 31, 2021, includes the Independent Auditor's Report on Financial Statements, Internal Control, and Compliance, along with the Financial Statements- Regulatory Basis for various funds. The audit adheres to Government Auditing Standards and the requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. Financial statements for the Current Fund, Trust Fund, General Capital Fund, and Swimming Pool Utility Fund are presented.

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Document Text

--- Document: 2021 Middlesex Borough Municipal Audit Document ---
Report of Audit
the
on
Financial Statements
of the
Borough of Middlesex
in the
County of Middl
New Jersey
esex
for the
Year Ended
December 31, 2021




BOROUGH OF MIDDLESEX
I N D E X
PAGES
PARTI
1-4
Independent Auditor's Report
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
5-6
EXHIBITS
Financial Statements - Regulatory Basis
Current Fund:
"A"
"A-1"
"A-2"
"A-3"
Balance Sheets - Regulatory Basis
Statements of Operations and Change in Fund Balance - Regulatory Basis
Statement of Revenues - Regulatory Basis - Year Ended December 31, 2021
Statement of Expenditures - Regulatory Basis - Year Ended December 31, 2021
Trust Fund:
”B"
"B-1”
Balance Sheets - Regulatory Basis
Statement of Fund Balance- Regulatory Basis
General Capital Fund:
"C"
"C-1"
Balance Sheets - Regulatory Basis
Statement of Fund Balance - Regulatory Basis
Swimming Pool Utility Fund;
“D”
Balance Sheets - Regulatory Basis
Comparative Statement of Operations and Change in Fund Balance - Regulatory Basis “D-1”
Statement of Fund Balance- Regulatory Basis
Statements of Revenues - Regulatory Basis - Year Ended December 31, 2021
Statement of Expenditures - Regulatory Basis - Year Ended December 31, 2021
‘D-2”
“D-3”
“D-4”
General Fixed Assets Account Group:
Balance Sheets - Regulatory Basis
,'EE”
PAGES
7-43
Notes to Financial Statements


BOROUGH OF MIDDLESEX
I N D E X (CONTINUED)
Supplementary Schedules - All Funds
EXHIBITS
Current Fund:
"A-4"
"A-5"
"A-6”
"A-7"
“A-8”
Schedule of Cash-Treasurer
Schedule of Change Funds
Schedule of Taxes Receivable and Analysis of Property Tax Levy
Schedule of Tax Title Liens
Schedule of Sewer Flow Charges Receivable
Schedule of Revenue Accounts Receivable
Schedule of Interfunds
Schedule of 2020 Appropriation Reserves
Schedule of Due State of New Jersey for Senior Citizen and Veteran Deductions
Schedule of County Taxes Payable
Schedule of Local District School Tax Payable
Schedule of Prepaid Taxes
Schedule of Tax Overpayments
Schedule of Encumbrances Payable
Schedule of Changes in Various Accounts Payables and Reserves
Schedule of Grants Receivable
Schedule of Reserve for Grants - Appropriated
Schedule of Reserve for Grants - Unappropriated
Schedule of Interfunds Receivable/Payable- Grant Fund
“A-9”
"A-10”
“A-11"
"A-12"
“A-13”
"A-14"
“A-15"
“A-16”
“A-17”
“A-18”
“A-19”
“A-20”
“A-21”
“A-22”
Trust Fund:
“B-2”
Schedule of Cash-Treasurer
Schedule of Assessments Receivable- Assessment Trust Fund
Schedule of Reserve for Animal Control Expenditures- Animal Control Trust Fund
Schedule Due State of New Jersey- Animal Control Trust Fund
Schedule of Due to General Capital Fund
Schedule of Due to Current Fund- Assessment Trust Fund
Schedule of Reserve for Miscellaneous Trust Deposits- Other Trust Fund
Schedule of Reserve for Developers’ Deposits- Other Trust Fund
Schedule of Reserve for Public Assistance Trust Fund
Schedule of Reserve for Payroll Deductions- Other Trust Fund
Schedule of Due to Current Fund- Animal Control Fund
Schedule of Interfunds Receivable- Other Trust Fund
Schedule of Due to Current Fund- Payroll Trust Fund
“B-3”
“B-4”
“B-5”
“B-6”
“B-7”
“B-8”
“B-9”
“B-10”
"B-11”
“B-12”
“B-13”
“B-14”


BOROUGH OF MIDDLESEX
I N D E X (CONTINUED)
EXHIBITS
General Capital Fund:
"C-2"
Schedule of Cash-Treasurer
Analysis of Cash
Schedule of Deferred Charges to Future Taxation-Funded
Schedule of Deferred Charges to Future Taxation-Unfunded
Schedule of Reserve for Insurance Refund
Schedule of Contracts Payable
Schedule of Capital Improvement Fund
Schedule of New Jersey infrastructure Bank Loan
Schedule of Improvement Authorizations
Schedule of General Serial Bonds
Schedule of State of New Jersey Trust Loan Payable- New Jersey
Environmental Infrastructure Trust Loans
Schedule of State of New Jersey Fund Loan Payable- New Jersey
Environmental Infrastructure Fund Loans
Schedule of Bond Anticipation Notes Payable
Schedule of Capital Leases Payable
Schedule of State of New Jersey Loan Payable- Green Trust Loan Program
Schedule of State Aid Receivable
Schedule of Bond Anticipation Notes Payable
Schedule of Reserve for Grant Receivable
Schedule of Reserve for Payment of Debt Service
Schedule of Due Current Fund
Schedule of Interfunds Payable
Schedule of Bonds and Notes Authorized But Not Issued
"C-3"
"C-4"
“C-5"
"c-e”
“C-7"
"C-8"
"C-9”
“C-10”
“C-11”
“C-12”
“C-13”
“C-13”
“C-14”
"C-15"
“C-16”
“C-17"
“C-18"
“C-19”
“C-20”
“C-21”
“C-22”
Swimming Pool Utility Fund
Schedule of Swimming Pool Utility Cash and Investments - Treasurer
Analysis of Swimming Pool Utility Capital Cash and Investments
Schedule of Fixed Capital
Schedule of Fixed Capital Authorized and Uncompleted
Schedule of 2020 Appropriation Reserves
Schedule of Interfunds Receivable/Payable
Schedule of Reserve for Amortization - Capital Fund
Schedule of Capital Improvement - Capital Fund
Schedule of Deferred Reserve for Amortization - Capital Fund
Schedule of Interfunds Receivable/Payable - Capital Fund
Schedule of Improvement Authorizations - Capita! Fund
Schedule of Accrued Interest on Bonds and Notes - Fund
Schedule of General Serial Bonds - Capital Fund
Schedule of Bonds and Notes Authorized but Not Issued- Capital Fund
“D-5”
“D-6”
“D-7”
“D-8”
“D-9”
“D-10”
“D-11”
"D-12"
“D-13”
“D-14"
“D-15”
“D-16”
“D-17”
“D-18”


BOROUGH OF MIDDLESEX
I N D E X (CONTINUED)
PAGES
PART II
Statistical Data
44-47
Officials in Office and Surety Bonds
48
Comments and Recommendations
49-52


BOROUGH OF MIDDLESEX
PARTI
INDEPENDENT AUDITOR’S REPORT ON
AUDIT OF FINANCIAL STATEMENTS
AND SUPPLEMENTARY SCHEDULES AND DATA
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
FINANCIAL STATEMENTS- REGULATORY BASIS- ALL FUNDS
NOTES TO FINANCIAL STATEMENTS- REGULATORY BASIS
SUPPLEMENTARY SCHEDULES- ALL FUNDS
YEARS ENDED DECEMBER 31. 2021 AND 2020


SUPLEE, CLOONEY & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
308 East Broad Street, Westfield , New Jersey 07090- 2122
Fax 908-789-8535
Telephone 908-789-9300
E-mail
info@scnco .com
INDEPENDENT AUDITOR’S REPORT
The Honorable Mayor and Members
of the Borough Council
Borough of Middlesex
County of Middlesex
Middlesex, New Jersey 08846
Report on the Audit of the Financial Statements
Adverse and Unmodified Opinions
We have audited the accompanying balance sheets - regulatory basis of the various individual
funds and account group of the Borough of Middlesex (the “Borough”), as of and for the year
ended December 31, 2021, the related statements of operations and changes in fund balance -
regulatory basis for the year then ended, and the related statement of revenues - regulatory basis
and statement of expenditures - regulatory basis of the various individual funds for the year ended
December 31, 2021, andthe related notes to the financial statements, which collectively comprise
the Borough’s regulatory financial statements as listed in the table of contents.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the “Matter Giving Rise to
Adverse Opinion” 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 various individual funds and account group of the Borough as of December
31, 2021, or the results of its operations and changes in fund balance for the year then ended or
the revenues or expenditures for the year ended December 31, 2021.
Unmodified Opinion on Regulatory Basis of Accounting
In our opinion, the regulatory financial statements referred to above present fairly, in all material
respects, the regulatory basis balances sheets of the various individual funds and account group
as of December 31, 2021, the regulatory basis statement of operations and changes in fund
balance for the year thenended and the regulatory basis statement of revenues and expenditures
and changes in fund balance for the year ended December 31, 2021 in accordance with the basis
of financial reporting prescribed by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey (the “Division”) as described in Note 1.
1


SUPLEE, CLOONEY & COMPANY
Basis for Adverse and Unmodified Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America, the audit requirements prescribed by the Division, and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller Genera! of the United States. Our responsibilities under those standards are further
described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the Borough and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our adverse and unmodified audit opinions.
Matter Giving Rise to Adverse Opinion
As described in Note 1 of the regulatory financial statements, the regulatory financial statements
are prepared by the Borough on the basis of the financial reporting provisions prescribed by the
Division, which is a basis of accounting other than accounting principles generally accepted in the
United States of America, to meet the requirements 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.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the regulatory financial
statements in accordance with the regulatory basis of accounting prescribed by the Division, and
for the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of regulatory financial statements that are free from material misstatement,
whether due to fraud or error. In preparing the regulatory financial statements, management is
required to evaluate whether there are conditions or events, considered in the aggregate, that
raise substantial doubt about the Borough's ability to continue as a going concern for twelve
months beyond the financial statement date, including any currently known information that may
raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the regulatory financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor's report that includes our opinions. Reasonable assurance is a high level of
assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted
in accordance with GAAS, Government Auditing Standards and audit requirements prescribed by
the Division will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user
based on the financial statements.
2


SUPLEE, CLOONEY & COMPANY
In performing an audit in accordance with GAAS, Government Auditing Standards and audit
requirements prescribed by the Division, we:
•exercise professional judgment and maintain professional skepticism throughout the audit.
•identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• obtain an understanding of internal control relevant to the audit 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 Borough's internal control. Accordingly, no such opinion is
expressed.
•evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
•conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Borough's ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control-related matters that we identified during the audit.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively
comprise the Borough's regulatory
financial statements. The supplementary
information, and data listed in the table of contents as required by the Division are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly
to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the supplemental information, and data listed in the table of contents, as
required by the Division are fairly stated, in all material respects, in relation to the regulatory
financial statements as a whole.
3


SUPLEE, CLOONEY & COMPANY
Prior Period Financial Statements
The financial statements of the Borough as of December 31, 2020, were audited by other auditors
whose report dated September 30, 2021, expressed an adverse opinion on the financial
statements as to the conformity of the financial statements with accounting principles generally
acceptedin the United States of America and anunmodified opinion on those financial statements
in accordance with the basis of financial reporting prescribed by the Division.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated August
25, 2022 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 solely 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 effectiveness of the Borough's 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 Borough's internal control over financial
reporting and compliance.
CERTIFIED PUBLIC ACCOUNTANT
REGISTERED MUNICIPAL ACCOUNTANT NO. 439
August 25, 2022
4


SUPLEE, CLOONEY & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
308 East Broad Street, Westfield, New Jersey 07090-2122
Fax 908-789 - 8535
Telephone 908-789-9300
E-mail
info@scnco.com
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
The 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 audit requirements prescribed by the Division of Local Government Services,
Department of Community Affairs, State of New Jersey and the standards applicable to financial
audits contained in Government Auditing Standards issued by the Comptroller General of the United
States, the regulatory financial statements of the various individual funds and the account group 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 regulatory financial
statements, and have issued our report thereon dated August 12, 2022. Our report disclosed that,
as described in Note 1 to the financial statements, the Borough of Middlesex prepares its financial
statements on a basis of accounting prescribed by the Division of Local Government Services,
Department of Community Affairs, State of New Jersey, that demonstrates compliance with a
modified accrual basis and the budget laws of the State of New Jersey, which is a comprehensive
basis of accounting other than U.S. generally accepted accounting principles.
Internal Control Over Financial Reporting
In planning and performing our audit of the regulatory financial statements, we considered
the Borough’s control over financial reporting (internal control) as a basis for designing 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
Borough’s internal control.
5


SUPLEE, CLOONEY & COMPANY
A deficiency in internal control exists when the design or operation of a controf 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 Borough of Middlesex’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.
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 financial statements. However, providing an opinion on compliance with
those provisions was not an objective of our audit, and accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards. However, there were instances of
noncompliance which is discussed in Part II, General Comments and Recommendations Section of
the audit report.
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 of Middlesex’s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Borough of
Middlesex’s internal control and compliance. Accordingly, this communication is not suitable for any
other purpose.
CERTIFIED PU
REGISTERED MUNICIPAL ACCOUNTANT NO. 439
August 25, 2022
6


THIS PAGE INTENTIONALLY LEFT BLANK


CURRENT FUND


"A"
SHEET #1
BOROUGH OF MIDDLESEX
CURRENT FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
DECEMBER
31.2021
BALANCE
DECEMBER
31. 2020
REF.
A S S E T S
Current Fund:
Cash
Cash-Change Fund
Due State of NJ-Senior Citizen and Veteran Deductions
$
5,827,688.96
$
500.00
5,306,241.41
500.00
46,333.08
5,882,239.85
$
5,353,074.49
A-4
A-5
A-12
54,050.89
$
Receivables and Other Assets With
Full Reserves:
Delinquent Property Taxes Receivable
Tax Title Liens
Property Acquired for Taxes
Sewer Flow Charges Receivable
Revenue Accounts Receivable
Interfunds Receivable
521,991.88
$
87,720.06
1,423,139.00
33,195.41
7,057.66
232,455.99
2,305,560.00
$
$
553,291.95
415,884.70
1,423,139.00
23,133.38
5,006.02
297,781.62
A-6
A-7
A
A-8
A-9
A-10
$
2,718,236.67
A
8,187,799.85
$
$
8,071,311.16
Grant Fund:
Cash
Grant Aid Receivable
Interfunds Receivable
$
544,550.88
$
889,954.13
27,236.52
1,461,741.53
$
A-4
888,891.61
23,775.00
A-19
A-22
$
912,666.61
$
9,649,541.38
$
8.983,977.77
A
The accompanying Notes to Financial Statements are an integral part of this statement.


"A"
SHEET #2
BOROUGH OF MIDDLESEX
CURRENT FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
DECEMBER
31.2021
BALANCE
DECEMBER
31.2020
REF.
LIABILITIES. RESERVES AND FUND BALANCE
Current Fund:
Liabilities:
Appropriation Reserves
Encumbrances
Local School Taxes Payable
Prepaid Taxes
Tax Overpayments
Various Accounts Payable
Various Reserve
Interfunds Payable
1,471,660.57
$
188,886.03
848,188.00
216,614.57
153,751.55
113,357.47
65,716.54
$
1,341,045.60
221,696.89
722,740.00
334,690.95
136,028.82
123,000.47
47,786.52
A-3:A-11
A-17
A-14
A-15
A-16
A-18
A-18
82,780.18
97,248.68
A-10
$
3,140,954.91
$
2,305,560.00
2,741,284.94
$
8,187,799.85
$
3,024.237.93
2,718,236.67
2,328,836.56
Reserve for Receivables and Other Assets
Fund Balance
A
A-1
8,071,311.16
Grant Fund:
Grants-Appropriated
Grants-Unappropriated
Encumbrances Payable
Interfunds Payable
859.758.38
$
594.710.39
7,272.76
777,963.11
A-20
$
A-21
63,600.63
71,102.87
A-20
A-22
1,461,741.53
$
912,666.61
$
$
9.649.541.38
$
8,983,977.77
A
The accompanying Notes to Financial Statements are an integral part of this statement.


"A-r
BOROUGH OF MIDDLESEX
CURRENT FUND
STATEMENTS OF OPERATIONS
AND CHANGE IN FUND BALANCE - REGULATORY BASIS
YEAR ENDED
DECEMBER
31.2021
YEAR ENDED
DECEMBER
31.2020
REF.
REVENUE AND OTHER INCOME REALIZED
$
1,400,000.00
$
5,231,960.83
547,348.94
46,885,651.87
385,705.21
1,100,000.00
5,934,806.28
600,695.74
45,808,928.24
227,180.30
A-1:A-2
Fund Balance Utilized
Miscellaneous Revenue Anticipated
Receipts From Delinquent Taxes
Receipts From Current Taxes
Non-Budget Revenue
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
Statutory Animal Control Excess
Interfunds Returned
A-2
A-2
A-2
A-2
848,060.18
A-11
1,033,936.88
5,641.74
297,781.62
$
55,788,027.09
$
54,519,670.74
A-10
A-10
TOTAL INCOME
EXPENDITURES
Budget and Emergency Authorizations:
Operations:
Salaries and Wages
Other Expenses
Municipal Debt Service
Capital Improvement Fund
Public and Private Programs Offset by Revenues
Deferred Charges and Statutory Expenditures
County Taxes
Local District School Tax
Interfunds Advanced
Refund of Prior Year Revenue
$
7,387,409.00
$
8,763,800.00
1,959,601.03
80,000.00
157,024.20
1,903,250.00
6,795,477.67
26,684,052.00
232,455.99
12,508.82
$
53,975,578.71
$
52,588,749.65
6,662,023.00
10,839,438.04
2,069,513.95
80,000.00
237,565.89
A-3
A-3
A-3
A-3
A-3
A-3
6,026,740.39
26,438,319.00
235,149.38
A-13
A-14
A-10
A-4
TOTAL EXPENDITURES
1,812,448.38
$
1,930,921.09
$
Excess in Revenue
1,497,915.47
A
2,328,836.56
Fund Balance, January 1
4,141,284.94
$
$
3,428,836.56
Decreased by:
Utilized as Anticipated Revenue
1,100,000.00
A-1:A-2
1,400,000.00
2,741,284.94
$
2,328,836.56
$
A
Fund Balance, December 31
The accompanying Notes to Financial Statements are an integral part of this statement.


"A-2”
SHEET #1
BOROUGH OF MIDDLESEX
CURRENT FUND
STATEMENT OF REVENUES - REGULATORY BASIS
YEAR ENDED DECEMBER 31. 2021
EXCESS
OR
BUDGET
NJSA 4QA:4-87
REALIZED
(DEFICIT!
ADOPTED
REF.
$
1,400,000.00
$
1,400,000,00
Fund Balance Anticipated
A-1
Miscellaneous Revenues:
Alcoholic Beverage Licenses
Other Licenses
Fees and Permits:
Construction Code Official
Other
Municipal Court - Fines and Costs
Interest and Costs on Taxes
Interest on Investments and Deposits
Cable Franchise Fees
Sewer Rents Receivable
Payment in Lieu of Taxes - Presbyterian Homes
Payment in Lieu of Taxes - 150 Lofts, LLC
Host Community Benefit Funds
Consolidated Municipal Property Tax Relief Aid
Energy Receipts Tax
Body Armor Replacement Fund - Federal
Body Armor Replacement Fund - State of New Jersey
Clean Communities
CDBG - County HUD Funds
Drive Sober or Get Pulled Over Year End Holiday Crackdown
A-10
Drunk Driving Enforcement Fund
Municipal Alliance on Alcoholism & Drug Abuse
Older Americans Act - Information Assistance
Older Americans Act - Transportation Assistance
Recycling Tonnage Grant
Payment in Lieu of Taxes - Midmarket Urban Renewal
General Capital Fund Balance
Sub-Total Miscellaneous Revenues
13,510.00
$
31,650.00
13,861.80
$
35,182.00
351.80
3,532.00
A-9
$
$
A-9
(381,382.00)
1,772.22
(145,107.80)
(27,260.15)
(14,162.52)
A-9
750.000.00
6,000.00
232,700.00
162,000.00
71,000.00
89,450.17
982,000.00
57,600.00
319,972.00
67,000.00
14,397.00
1,765,417.00
4,447.58
2,280.10
368,618.00
7,772.22
87.592.20
134,739.85
56,837.48
89,450.17
957,366.54
56.100.21
879,993.25
67,827.03
14,397.00
1,765,417.00
4,447.58
2,280.10
28,014.86
63,854.00
6,000.00
6,268.76
7,978.00
6,500.00
10,000.00
19,686.40
325,087.47
216,688.91
34,014.86
$
5,231,960.83
$
A-9
A-9
A-9
A-2
A-9
(24,633.46)
(1,499.79)
560,021.25
827.03
A-8
A-9
A-9
A-9
A-9
A-9
A-10
A-10
A-10
28,014.86
A-10
63,854.00
6,000.00
A-10
6,268.76
7,978.00
6,500.00
10,000.00
19,686.40
263,314.11
216,688,91
$
5,163,714.03
$
A-10
A-10
A-10
A-10
61,773.36
A-9
A-9
34,231.94
A-1
$
547,348.94
$
22,348.94
A-1
$
525,000.00
$
Receipts From Delinquent Taxes
Amount to be Raised by Taxes for Support
of Municipal Budget:
Local Tax for Municipal Purposes
Minimum Library Tax
$
13,610,663.18
$
276,209.62
570,459.02
A-6:A-2
A-6:A-2
$
13,334,453.56
$
570,459.02
14,181,122.20
276,209.62
13,904,912.58
34,014.86
$
21,360,431.97
$
332,790.50
Budget Totals
$
20,993,626.61
$
385,705.21
A-1:A-2
385,705.21
Non-Budget Revenues
34,014.86
$
21746,137.18
$
718.495.71
$
20,993.626,61
$
A-3
REF
A-3
The accompanying Notes to Financial Statements are an integral part of this statement.


"A-2"
SHEET #2
BOROUGH OF MIDDLESEX
CURRENT FUND
STATEMENT OF REVENUES - REGULATORY BASIS
YEAR ENDED DECEMBER 31. 2021
REF.
ANALYSIS OF REALIZED REVENUES
Allocation of Current Tax Collections:
Revenue From Collections
$
46,885,651.87
A-1:A-6
Allocated to:
Local District School Taxes
County Taxes
$
26,684,052.00
6,795,477.67
A-6
A-6
33,479,529.67
Balance for Support of Municipal Budget
Appropriations
Add: Appropriation “Reserve for Uncollected Taxes"
$
13,406,122.20
775,000.00
A-3
$
14,181122.20
A-2
Amount for Support of Municipal Budget Appropriations
Interest on Investments and Deposits
Cash Receipts
Due from Trust Assessment Fund
Due from Payroll Trust
$
55,388.62
72.90
1,375.96
A-9
A-10
A-10
$
56,837.48
A-2
ANALYSIS OF NON-BUDGET REVENUE
$
735.00
3,346.59
42,514.32
282.00
450.00
27,322.50
1,450.00
21,500.00
2,350.00
200.00
169,750.00
22,652.73
24,777.01
568.80
31,645.00
1,728.73
34,432.53
Duplicate Tax Bill Fees
Outstanding Checks Canceled
Library Health Contributions
Sale of Municipal Assets
Property Tax Lists
Outside Police Admin Fees
Property Maintenance Admin Fees
Abandoned Property Registration
Landlord Registration
Bulk Ticket & Pickups
PILOT - RG Middlesex Urban Renewal, LLC
PILOT - The View at 242 Lincoln Blvd
CARES Act
Homestead Rebate Mail Reimbursement
Insurance Reimbursements
Senior Citizens' and Veterans' Administrative Fee
Miscellaneous
$
385.705.21
A-2:A-4
The accompanying Notes to Financial Statements are an integral part of this statement.


"A-3"
BOROUGH OF MIDDLESEX
SHEET #1
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31.2021
UNEXPENDED
BALANCE
CANCELED
EXPENDED
APPROPRIATIONS
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
RESERVED
BUDGET
OPERATIONS WITHIN "CAPS"
GENERAL GOVERNMENT
General Administration:
Salaries and Wages
Other Expenses
Postage for All Departments
Other Expenses
Printing and Advertising
Other Expenses
Mayor and Council:
Salaries and Wages
Other Expenses
Municipal Clerk:
Salaries and Wages
Other Expenses
Elections
Financial Administration:
Salaries and Wages
Other Expenses
Audit
Assessment of Taxes:
Salaries and Wages
Other Expenses
Collection of Taxes:
Salaries and Wages
Other Expenses
Legal Services and Costs:
Other Expenses
Computer Data Services
Other Expenses
Engineering Services and Costs:
Other Expenses
Environmental Legal & Engineering Services:
Other Expenses
124,155.58
$
978.30
4.42
$
2,871.70
$
123,500.00
$
3,850.00
124,160.00
$
3,850.00
21,957.86
3,042.14
25,000.00
25,000.00
7,406.46
2,593.54
10,000.00
10,000.00
16.83
2,869.15
8,950.00
7,000.00
8,933.17
4,130.85
8,800.00
7,000.00
170,321.07
10,829.49
9,878.09
678.93
720.51
121.91
171,000.00
11,550.00
10,000.00
171,000.00
11,550.00
10,000.00
113,727.81
43,122.13
6,000.00
1,272.19
10,377.87
39,000.00
115,000.00
53,500.00
45,000.00
115,000.00
53,500.00
45,000.00
28,900.00
3,700.00
28,834.86
3,658.37
65.14
4163
27,500.00
3,700.00
281.71
2,334.21
64,500.00
7,150.00
64,218.29
4,815.79
64,500.00
7,150.00
26,856.00
185,000.00
158,144.00
175,000.00
33,362.75
249,500.00
216,137.25
249,500.00
50,893.25
31,106.75
97,000.00
82,000.00
15,000.00
13,020.69
1,979.31
10,000.00
The accompanying Notes to Financial Statements are an integral part of this statement.


"A-3"
BOROUGH OF MIDDLESEX
SHEET #2
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31. 2021
UNEXPENDED
BALANCE
CANCELED
APPROPRIATIONS
EXPENDED
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
RESERVED
BUDGET
Purchasing Agent:
Other Expenses
Joint Land Use Board:
Salaries and Wages
Other Expenses
Code Enforcement
Salaries and Wages
Other Expenses
2,000.00
$
2,000.00
$
1,087.73
$
912.27
$
$
6,000.00
25,750.00
4,000.00
8,287.08
2,000.00
17,462.92
6,000.00
25,750.00
62,500.00
21,400.00
62,500.00
21,400.00
46,814.56
4,098.87
15,685.44
17,301.13
PUBLIC SAFETY
Police:
Salaries and Wages
Other Expenses
Juvenile Conference Committee:
Salaries and Wages
Other Expenses
Fire Department:
Other Expenses
First Aid Organization
Other Expenses
Emergency Management Service:
Salaries and Wages
Other Expenses
Public Defender:
Other Expenses
Fire Hydrant Service
Other Expenses
Municipal Prosecutor
Other Expenses
Municipal Court:
Salaries and Wages
Other Expenses
3,744,530.97
146,072.83
155,469.03
27,977.17
3,900,000.00
174,050.00
3,900,000.00
174,050.00
2,134.82
0.18
2,135.00
250.00
2,135.00
250.00
250.00
144,800.00
144,800.00
124,533.93
20,266.07
10,000.00
10,000.00
20,000.00
20,000.00
5,000.00
8,500.00
5,000.00
8,500.00
5,000.00
4,216.87
4,283.13
7,675.00
7,325.00
15,000.00
15,000.00
187,258.31
17,741.69
205,000.00
205,000.00
20,000.00
18,333.26
1,666.74
20,000.00
11,517.49
3,281.03
154,500.00
8,000.00
154,500.00
8,000.00
142,982.51
4,718.97
The accompanying Notes to Financial Statements are an integral part of this statement.


"A-3"
BOROUGH OF MIDDLESEX
SHEET #3
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31. 2021
UNEXPENDED
BALANCE
CANCELED
APPROPRIATIONS
EXPENDED
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
RESERVED
BUDGET
PUBLIC WORKS
Streets Department:
Salaries and Wages
Other Expenses
Garbage and Trash Removal:
Salaries and Wages
Other Expenses
Solid Waste Collection:
Salaries and Wages
Building and Grounds:
Salaries and Wages
Other Expenses
Community Services Act:
Other Expenses
Shade Tree Commission:
Salaries and Wages
Other Expenses
Rental of Rescue Squad Building:
Other Expenses
796,000.00
$
118,350.00
762,431.65
$
116,249.08
33,568.35
$
2,100.92
$
781,000.00
$
113,350.00
431,933.99
29,021.66
11,066.01
11,478.34
431,000.00
40,500.00
443,000.00
40,500.00
147,000.00
142,257.93
4,742.07
145,000.00
97.36
26,535.03
25,000.00
110,000.00
25,000.00
110,000.00
24,902.64
83,464.97
42,775.72
224.28
43,000.00
43,000.00
2,600.00
48,000.00
2,561.62
47,960.00
38.38
40.00
2,600.00
38,000.00
7,200.00
7,200.00
7,200.00
HEALTH AND HUMAN SERVICES
Board of Health:
Other Expenses
Senior Nutrition Program:
Salaries and Wages
Animal Control Services:
Other Expenses
Title ill Senior Medical Transportation:
Salaries and Wages
Title III Information & assistance Program:
Salaries and Wages
72,260.00
154.45
72,260.00
72,105.55
3,283.00
4,217.00
7,500.00
7,500.00
30,000.00
30,000.00
7,000.00
23,000.00
6,217.00
11,000.00
11,000.00
4,783.00
9,558.62
39,000.00
39,000.00
29,441.38
The accompanying Notes to Financial Statements are an integral part of this statement


"A-3"
BOROUGH OF MIDDLESEX
SHEET #4
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31. 2021
UNEXPENDED
BALANCE
CANCELED
EXPENDED
APPROPRIATIONS
PAID OR
CHARGED
BUDGET AFTER
MODIFICATION
RESERVED
BUDGET
PARKS AND RECREATION
Parks & Playgrounds:
Salaries and Wages
Other Expenses
Housing and Community Adviory Board:
Salaries and Wages
Other Expenses
Beautification Committee
Other Expenses
Multi-Family Solid Waste Collection
Other Expenses
Recreation Service & Programs
Salaries and Wages
Other Expenses
Senior Bus Transportation:
Salaries and Wages
Other Expenses
Senior Citizen Coordinator:
Salaries and Wages
Other Expenses
515,500.00
$
55,850.00
488,200.73
$
55,499.37
27,299.27
$
350.63
$
515,500.00
$
55,850.00
500.00
100.00
200.00
300.00
100.00
500.00
100.00
793.07
1,000.00
206.93
1,000.00
24,600.00
30,000.00
5,400.00
30,000.00
58,805.35
10,043.33
10,194.65
5,356.67
69,000.00
15,400.00
79,000.00
15,400.00
6,850.00
3,471.75
20,000.00
5,500.00
10,000.00
5,500.00
3,150.00
2,028.25
1,983.84
6,464.05
65,000.00
11,500.00
63,016.16
5,035.95
65,000.00
11,500.00
STATE UNIFORM CONSTRUCTION CODE
Construction Code Official:
Salaries and Wages
Other Expenses
7,225.45
1,924.75
190,500.00
5,700.00
190,500.00
5,700.00
183,274.55
3,775.25
The accompanying Notes to Financial Statements are an integral part of this statement.


"A-3"
BOROUGH OF MIDDLESEX
SHEET #5
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31. 2021
UNEXPENDED
BALANCE
CANCELED
APPROPRIATIONS
EXPENDED
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
RESERVED
BUDGET
INSURANCE
Temporary Disability Insurance
Long Term Disability Insurance
General Liability Insurance
Workmen’s Compensation
Employee Group Insurance
3,734.82
$
2,067.58
1,486.54
3,952.89
196,589.49
$
30,000.00
$
20,000.00
260,000.00
175,000.00
2,400,000.00
30,000.00
$
20,000.00
260,000.00
175,000.00
2,253,790.00
26,265.18
$
17,932.42
258,513.46
171,047.11
2,057,200.51
Health Insurance Waiver
Other Expenses
5,156.19
25,000.00
25,000.00
19,843.81
Flood Plain Management
Other Expenses
15,000.00
229.50
14,770.50
15,000.00
Utility Expenses & Purchases:
164,024.42
145,426.13
59,745.58
14,165.86
18,385.29
33,209.70
70,000.00
40,975.58
24,573.87
10,254.42
15,834.14
11,614.71
31,790.30
175,000.00
170,000.00
70,000.00
30,000.00
30,000.00
65,000.00
70,000.00
205,000.00
170,000.00
70,000.00
30,000.00
30,000.00
65,000.00
70,000.00
Electricity
Street Lighting
Telephones
Water
Natural Gas
Fuel Oil
Gasoline
Sewerage Processing & Disposal:
Salaries and Wages
Other Expenses
83,605.20
13,779.88
2,894.80
17,370.12
76,500.00
31,150.00
86,500.00
31,150.00
LANDF1LL7SOLID WASTE DISPOSAL COSTS
33,391.80
400,000.00
475,000.00
441,608.20
Other Expenses
The accompanying Notes to Financial Statements are an integral part of this statement.


"A-3"
BOROUGH OF MIDDLESEX
SHEET #6
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31. 2021
APPROPRIATIONS
EXPENDED
UNEXPENDED
BALANCE
CANCELED
PAID OR
CHARGED
BUDGET AFTER
MODIFICATION
BUDGET
RESERVED
UNCLASSIFIED
Celebration of Public Events:
Other Expenses
10,500.00
$
10,500.00
$
4,921.53
$
5,578.47
$
$
Accumulated Sick Leave Compensation
Salaries and Wages
50,000.00
50,000.00
50,000.00
12,983,545.00
11,858,820.86
1,124,724.14
TOTAL OPERATIONS WITHIN "CAPS”
12,988,545.00
20,000.00
12,187.40
7,812.60
20,000.00
Contingent
TOTAL OPERATIONS INCLUDING CONTINGENT
WITHIN "CAPS"
13,003,545.00
11,871,008.26
1,132,536.74
13,008,545.00
Detail:
Salaries and Wages
Other Expenses
6,787,500.84
5,083,507.42
313,244.16
819,292.58
7,079,535.00
5,929,010.00
7,100,745.00
5,902,800.00
DEFERRED CHARGES AND STATUTORY
EXPENDITURES-MUNICIPAL WITHIN "CAPS"
Statutory Expenditures:
Social Security System (O.A.S.I.)
Contribution to:
Public Employee's Retirement System
Police and Firemen’s Retirement Fund
Pension and Firemen's Widow
Defined Contribution Retirement Plan
320,000.00
325,000.00
314,877.07
10,122.93
450,000.00
1,115,000.00
1,250.00
12,000.00
450,000.00
1,115,000.00
1,250.00
12,000.00
447,136.00
1,112,286.01
1,250.00
10,085.38
2,864.00
2,713.99
1,914.62
TOTAL DEFERRED CHARGES AND STATUTORY
EXPENDITURES-MUNICIPAL WITHIN ’’CAPS”
1,898,250.00
1,903,250.00
1,885,634.46
17,615.54
TOTAL GENERAL APPROPRIATIONS FOR MUNICIPAL
PURPOSES WITHIN "CAPS"
14,906,795.00
13,756,642.72
1,150,152.28
14,906,795.00
The accompanying Notes to Financial Statements are an integral part of this statement.


"A-3"
BOROUGH OF MIDDLESEX
SHEET #7
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31.2021
UNEXPENDED
BALANCE
CANCELED
APPROPRIATIONS
EXPENDED
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
RESERVED
BUDGET
OPERATIONS EXCLUDED FROM "CAPS"
$
$
590,000.00
$
1,500,000.00
400,000.00
100,000.00
590,000.00
$
1,500,000.00
400,000.00
100,000.00
590,000.00
$
1,450,654.84
253,352.87
Maintenace of Free Public Library
MCUA - Sewer Authority - Contractual
Piscataway Sewerage Authority - Share of Costs
LOSAP
49,345.16
146,647.13
100,000.00
Stormwater Pollution Programs:
NJPDES/Stormwater Permit
Salaries and Wages
Other Expenses
286,664.00
3,000.00
286,664.00
6,000.00
286,664.00
6,000.00
3,000.00
SHARED SERVICE AGREEMENTS
County Curbside Collection Program:
Other Expenses
242,484.00
22,516.00
265,000.00
265,000.00
PUBLIC AND PRIVATE PROGRAMS
OFF-SET BY REVENUES
Recycling Tonnage Grant
Clean Communities Program (40A;4-87 $28,014.86)
CDBG
Drive Sober or Get Pulled Over Year End
Holiday Crackdown (40A:4-87 $6,000.00)
Municipal Alliance on Alcohol & Drug Abuse
Municipal Alliance on Alcohol & Drug Abuse - Match
Body Armor Grant - Federal
Body Armor Grant - State
Drunk Driving Enforcement Fund
Older Americans Act
19,686.40
28,014.86
63,854.00
19,686.40
19,686.40
28,014.86
63,854.00
63,854.00
6,000.00
7,978.00
1,994.50
4,447.58
2,280.10
6,268.76
16,500.00
6,000.00
7,978.00
1,994.50
4,447.58
2,280.10
6,268.76
16,500.00
7,978.00
1,994.50
4,447.58
2,280.10
6,268.76
16,500.00
321,508.29
3,304,688.20
2,983,179.91
3,270,673.34
TOTAL OPERATIONS EXCLUDED FROM "CAPS
11
CAPITAL IMPROVEMENTS EXCLUDED FROM "CAPS"
80,000.00
80,000.00
80,000.00
Capital Improvement Fund
80,000.00
80,000.00
80,000.00
TOTAL CAPITAL IMPROVEMENTS EXCLUDED FROM "CAPS"
The accompanying Notes to Financial Statements are an integral part of this statement.


"A-3"
BOROUGH OF MIDDLESEX
SHEET #8
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31. 2021
UNEXPENDED
BALANCE
CANCELED
APPROPRIATIONS
EXPENDED
BUDGET AFTER
MODIFICATION
PAID OR
CHARGED
BUDGET
RESERVED
MUNICIPAL DEBT SERVICE-EXCLUDED FROM "CAPS"
Payment of Bond Principal
Payment of Bond Anticipation Notes and Capital Notes
Interest on Bonds
Interest on Notes
Green Trust Loan
NJEIT Loan
MCIA Loan
Fire Truck
1,046,472.00
$
160,000.00
205,075.00
62,229.98
12,996.29
94,213.49
230,600.00
148,014.27
$
$
1,046,472.00
$
160,000.00
205,075.00
62,250.00
12,997.00
95,750.00
230,600.00
148,014,27
1,046,472.00
$
160,000.00
205,075.00
62,250.00
12,997.00
95,750.00
230,600.00
148,014.27
20.02
0.71
1,536.51
TOTAL MUNICIPAL DEBT SERVICE-
EXCLUDED FROM "CAPS"
1,959,601.03
1,557.24
1,961,158.27
1,961,158.27
TOTAL GENERAL APPROPRIATIONS FOR MUNICIPAL
PURPOSES EXCLUDED FROM "CAPS”
1,557.24
5,345,846.47
5,022,780.94
321,508.29
5,311,831.61
1,557.24
20,252,641.47
18,779,423.66
1,471,660.57
SUB-TOTAL GENERAL APPROPRIATIONS
20,218,626.61
775,000.00
RESERVE FOR UNCOLLECTED TAXES
775,000.00
775,000.00
$
20,993,626.61
$
21,027,641.47
$
19,554,423.66
$
1,471,660.57
$
1,557.24
TOTAL GENERAL APPROPRIATIONS
A-1
A:A-1
A-2:A~3
REF.
$
34,014.86
20,993,626.61
Amendment by (NJSA 40A:4-87)
Budget
A-2
A-3
$
21,027,641.47
$
775,000.00
188,886.03
157,024.20
18,433,513.43
A-2
Reserve for Uncollected Taxes
Accounts Payable
Reserve for Grants Appropriated
Disbursements
A-17
A-10,A-22
A-4
$
19,554,423.66
The accompanying Notes to Financial Statements are an integral part of this statement.


TRUST FUND


"B"
SHEET #1
BOROUGH OF MIDDLESEX
TRUST FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
DECEMBER
31.2020
BALANCE
DECEMBER
31.2021
REF.
A S S E T S
Assessment Fund:
Cash
Assessment Receivable
$
11,961.97
$
1,470.00
$
13,431.97
$
13,359.07
11,889.07
1,470.00
B-2
B-3
Animal Control Fund:
Cash
$
29,578.02
$
24,938.14
$
29,578.02
$
24,938.14
B-2
Other Trust Fund:
Cash
Due Current Fund
Due General Capital Fund
706,861.00
97,248.68
522,787.01
$
2,039,610.08
$
79,318.66
522,787.01
$
2,641,715.75
$
1,326,896.69
B-2
B-13
B-13
Escrow Trust Fund:
Cash
$
611,879.43
$
1,018,902.21
$
611,879.43
$
1,018,902.21
B-2
Payroll Trust Fund:
Cash
$
112,201.09
$
167,306.02
$
112,201.09
$
167,306.02
B-2
Public Assistance Trust Fund:
Cash
9,836.41
$
9,833.07
$
9,833.07
$
B-2
9,836.41
$
$
3,418,639.33
$
2,561,238.54
The accompanying Notes to Financial Statements are an integral part of this statement.


"B"
SHEET #2
BOROUGH OF MIDDLESEX
TRUST FUND
BALANCE SHEETS - REGULATORY BASIS
LIABILITIES. RESERVES AND FUND BALANCE
Assessment Fund:
Due Current Fund
Due General Capital Fund
Fund Balance
702.12
$
7,164.08
5,565.77
$
13,431.97
$
13,359.07
$
629.22
B-7
7,164.08
5,565.77
B-6
B-1
Animal Control Fund:
Reserve For Animal Control Fund Expenditures
Due Current Fund
Due to State of New Jersey
12,048.46
12,888.48
$
11,040.00
$
18,530.22
B-4
B-12
1.20
7.80
B-5
$
29,578.02
$
24,938.14
Other Trust Fund:
Reserve For:
State Unemployment Compensation Insurance
Various Trust Deposits
$
190,544.51
$
192,617.04
1,134,279.65
$
2,641,715.75
$
1,326,896.69
B-8
2,451,171.24
B-8
Escrow Trust Fund:
Developers' Escrow - Water & Soil
Developers' Escrow Funds
20,062.00
998,840.21
$
20,062.00
$
591,817.43
$
611,871155" $
1,018,9OCT
B-9
B-9
Payroll Trust Fund:
Payroll Deductions Payable
Due Current Fund
$
112,130.98
$
167,306.02
70.11
$
112,201.09
$
167,306.02
B-11
B-14
Public Assistance Trust Fund:
Reserve for Public Assistance
9,833.07
$
9,833.07
$
9,836.41
$
B-10
9,836.41
$
$
3,418,639.33
$
2,561,238.54
The accompanying Notes to Financial Statements are an integral part of this statement.


"B-1"
BOROUGH OF MIDDLESEX
ASSESSMENT TRUST FUND
STATEMENT OF FUND BALANCE - REGULATORY BASIS
REF.
$
5,565.77
B
Balance, December 31, 2020
$
5,565.77
Balance, December 31, 2021
B
The accompanying Notes to Financial Statements are an integral part of this statement.


GENERAL CAPITAL FUND


"C"
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
DECEMBER
31.2020
BALANCE
DECEMBER
31.2021
REF.
A S S E T S
$
1,753,050.55
$
2,947,534.42
7,164.08
1,726,093.92
2,912,642.77
7,164.08
C-2:C-3
Cash
Grants - In - Aid, Loans and Other Receivable
Due Trust Assessment Fund
Deferred Charges to Future Taxation:
Funded
Unfunded
C-16
C-20
6,235,729.51
10,802,986.64
4,933,363.82
12,710,686.64
C-4
C-5
$
22,351,799.51
$
21,684,616.92
LIABILITIES. RESERVES AND FUND BALANCE
7,832,673.00
$
4,244,000.00
2,342,503.22
24,862.43
559,772.11
98,634.92
522,787.01
23,775.00
4,838.08
56,943.53
6,550,524.00
5,244,500.00
1,270,876.06
23,287.43
559,772.11
98,634.92
522,787.01
23,775.00
4,838.08
$
Bond Anticipation Notes Payable
General Serial Bonds Payable
Contracts Payable
Capital Improvement Fund
Reserve for Grant Receivable
Due Current Fund
Due Trust Other Fund
Due Grant Fund
Reserve for Insurance Refund
Reserve for Payment of Debt Service
State of New Jersey Loan Payable:
Environmental Infrastructure Trust Loans
Environmental Infrastructure Fund Loans
Environmental Infrastructure Loan
Green Trust Loan Program
Capital Leases Payable
Improvement Authorizations:
Funded
Unfunded
Fund Balance
C-17
C-11
C-7
C-8
C-18
C-21
C-21
C-21
C-6
C-19
197,163.70
122,527.51
898,891.00
31,538.30
640,000.00
155,823.06
79,429.81
898,891.00
19,110.95
435,000.00
C-12
C-13
C-9
C-15
C-14
773,466.70
4,307,548.61
414,486.49
1,093,521.46
3,761,436.35
197,797.58
C-10
C-10
C-1
$
22,351799.51
$
21.684.616.92
The accompanying Notes to Financial Statements are an integral part of this statement.


"c-r
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
STATEMENT OF FUND BALANCE - REGULATORY BASIS
YEAR ENDED
DECEMBER 31
YEAR ENDED
DECEMBER 31
2020
REF.
2021
$
414,486.49
$
535.57
C
Balance, January 1
Increased by:
Cancellation of Ordinances
413,950.92
414,486.49
$
414,486.49
$
Decreased by:
Surplus Anticipated-Current Fund
216,688.91
C-2
$
197,797.58
$
414,486.49
C
Balance, December 31
The accompanying Notes to Financial Statements are an integral part of this statement.


THIS PAGE INTENTIONALLY LEFT BLANK


SWIMMING POOL UTILITY FUND


"D"
SHEET #1
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
BALANCE
DEC. 31. 2021
BALANCE
DEC. 31. 2020
REF.
ASSETS
Operating Fund:
Assets:
Cash and Investments - Treasurer
Cash and Investments - Snack Bar
Due from Swimming Pool Capital Fund
$
306,145.02 $
3,001.00
94,320.11
161,999.92
3,008.51
94,320.11
D-5
D-5
D-10
259,328.54
403,466.13
Total Operating Fund
Capital Fund:
Fixed Capital
Fixed Capital - Authorized and
Uncompleted
666,291.56
D-7
666,291.56
D-8
1,650,000.00
1,650,000.00
2,316,291.56
2,316,291.56
Total Capital Fund
$
2,719,757.69 $
2,575,620.10
The accompanying Notes to Financial Statements are an integral part of this statement


"D"
SHEET #2
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY FUND
COMPARATIVE BALANCE SHEET - REGULATORY BASIS
BALANCE
DEC. 31.2020
BALANCE
DEC. 31.2021
LIABILITIES, RESERVES
AND FUND BALANCE
REF.
Operating Fund:
Liabilities:
Appropriation Reserves
Reserve for Encumbrances
Due to Current Fund
Accrued Interest on Bonds
64,774.58 $
5,202.99
114,518.62
5,577.92
D-4, D-9
$
D-4, D-9
114,723.85
1,100.44
114,526.13
6,706.56
D-10
D-16
190,074.11
213,392.02
237,056.98
22,271.56
D-1
Fund Balance
259,328.54
403,466.13
Total Operating Fund
Capital Fund:
General Serial Bonds
Improvement Authorizations
Funded
Unfunded
Capital Improvement Fund
Due to Swimming Pool Operating Fund
Reserve for Amortization
Deferred Reserve for Amortization
Fund Balance
663,500.00
539,000.00
D-17
51,660.79
93,670.00
7,730.10
94,320.11
1,237,791.56
165,000.00
2,619.00
D-15
51,660.79
93,670.00
7,730.10
94,320.11
1,362,291.56
165,000.00
2,619.00
D-15
D-12
D-14
D-11
D-13
D-2
2,316,291.56
2,316,291.56
Total Capital Fund
$
2,719,757.69 $
2,575,620.10
The accompanying Notes to Financial Statements are an integral part of this statement


"D-1"
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY OPERATING FUND
COMPARATIVE STATEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE-REGULATORY BASIS
YEAR ENDED
DECEMBER
31.2020
YEAR ENDED
DECEMBER
31.2021
REVENUE AND OTHER INCOME REALIZED
REF.
D-3
$
21,157.81 $
302,246.88
113,886.78
121,170.19
75,028.00
144,264.25
51,906.29
Fund Balance
Fees - Membership
Miscellaneous
American Rescue Act
Other Credits to Income:
Unexpended Balance of Approp. Reserves
Cancellation of Accrued Interest on Bonds
Cancellation of Accounts Payable
D-3
D-3
D-3
115,215.97
1,128.64
43,628.16
1,113.75
34,693.93
D-9
D-16
350,634.38
674,806.27
Total Revenues
EXPENDITURES
Budget Appropriations:
Operating
Debt Service
Statutory Expenditures and Deferred Charges
315,000.00
78,528.00
11,500.00
369,500.00
78,528.00
14,500.00
D-4
D-4
D-4
405,028.00
462,528.00
Total Expenditures
(54,393.62)
212,278.27
Excess/(Deficit) in Revenues
FUND BALANCE
151,693.18
D
22,271.56
Balance - January 1
97,299.56
234,549.83
Decreased by:
Utilization as Anticipated Revenue
75,028.00
21,157.81
D-1
22,271.56
D
$
213,392.02 $
Balance - December 31
The accompanying Notes to Financial Statements are an integral part of this statement


"D-2"
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY CAPITAL FUND
STATEMENT OF FUND BALANCE-REGULATORY BASIS
REF.
$
2,619.00
D
Balance - December 31, 2020
$
2,619.00
D
Balance - December 31, 2021
The accompanying Notes to Financial Statements are an integral part of this statement


"D-3"
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY OPERATING FUND
STATEMENT OF REVENUES-REGULATORY BASIS
YEAR ENDED DECEMBER 31. 2021
EXCESS OR
(DEFICIT')
2021
BUDGET
REALIZED
REF.
21,157.81 $
302,246.88
113,886.78
121,170.19
D-1
$
D-1.D-5
D-1.D-5
D-1.D-5
21,157.81 $
227,200.00
93,000.00
121,170.19
Fund Balance
Fees - Membership
Miscellaneous
American Rescue Plan Act
75,046.88
20,886.78
$
462,528.00 $
558,461.66 $
95,933.66
D-4
Ref.
Analysis of Miscellaneous Revenues:
Interest
Miscellaneous Revenues
$
56.48
113,830.30
$
113,886.78
D-5
The accompanying Notes to Financial Statements are an integral part of this statement


"D-4"
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY OPERATING FUND
STATEMENT OF EXPENDITURES-REGULATORY BASIS
UNEXPENDED
BALANCE
CANCELLED
EXPENDED
PAID OR
CHARGED
ENCUMBERED
RESERVED
BUDGET AFTER
MODIFICATION
2021
BUDGET
Operating:
Salaries and Wages
Other Expenses
14,720.24 $
50,049.51
189,779.76 $
109,747.50
$
204,500.00 $
165,000.00
$
205,000.00 $
165,000.00
5,202.99
Debt Service:
Payment of Bond Principal
78,528.00
78,528.00
78,528.00
Statutory Expenditures:
Contribution to:
Social Security System (O.A.S.I.)
4.83
14,495.17
14,000.00
14,500.00
462,528.00 $
392,550.43 $
5,202.99 $
64,774.58 $
$
462,528.00 $
Total Swimming Pool Utility Appropriations
D.D-1
D-1.D-5
D.D-1
D-3
Ref.
D-3
The accompanying Notes to Financial Statements are an integral part of this statement


THIS PAGE INTENTIONALLY LEFT BLANK


GENERAL FIXED ASSETS ACCOUNT GROUP


BOROUGH OF MIDDLESEX
STATEMENT OF GENERAL FIXED ASSETS
BALANCE SHEETS - REGULATORY BASIS
BALANCE
DECEMBER
31.2021
BALANCE
DECEMBER
31, 2020
FIXED ASSETS:
5,864,700.00
$
6,533,000.00
10,539,023.00
$
5,864,700.00
6,533,000.00
10,114,287.23
Land
Buildings
Machinery and Equipment
22,936,723.00
$
22,511,987.23
TOTAL FIXED ASSETS
$
RESERVE:
22,936,723.00
$
22,511,987.23
$
Investments in General Fixed Assets
The accompanying Notes to Financial Statements are an integral part of this statement.


NOTES TO FINANCIAL STATEMENTS


BOROUGH OF MIDDLESEX
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31. 2021 AND 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NOTE 1:
Reporting Entity
A.
The Borough of Middlesex is an instrumentality of the State of New
Jersey, established to function as a municipality.
The Borough council
consists of elected officials and is responsible for the fiscal control of the
Borough. A Mayor is elected to serve a term of four years.
A Council
consisting of six members is elected to serve staggered three-year terms.
As defined by GAAP established by the GASB, the financial reporting
entity consists of the primary government, as well as component units,
which are legally separate organizations for which elected officials of the
primary
government
are
financially
accountable.
The
Borough
is
financially accountable for an organization if the Borough appoints a
voting majority of the organization’s governing board and (1) the Borough
is able to significantly influence the programs or services performed or
provided by the organizations; or (2) the Borough is legally entitled to or
can otherwise access the organization’s resources; the Borough is legally
obligated or has otherwise assumed the responsibility to finance the
deficits of, or provide financial support to, the organization; or the
Borough is obligated for the debt of the organization.
Except as noted below, the financial statements of the Borough of
Middlesex include every board, body, officer or commission supported
and maintained wholly or in part by funds appropriated by the Borough of
Middlesex, as required by N.J.S.A. 40A:5-5.
Accordingly, the financial
statements of the Borough of Middlesex do not include the operations of
the free public library, volunteer rescue organizations or the local public
school district, inasmuch as their activities are administered by separate
boards.
Description of Funds
B.
The Governmental Accounting Standards Board (GASB) is the accepted
standard-setting body for establishing governmental accounting and
financial reporting principles.
GASB Codification establishes three fund
types and two account groups to be used by general purpose governmen-
tal units when reporting financial position and results of operations in
accordance with U.S. Generally Accepted Accounting Principles (GAAP).
7


NOTE 1:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Description of Funds (Continued)
B.
The accounting policies of the Borough of Middlesex conform to the
accounting principles applicable to municipalities which have been
prescribed by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey. Such principles and practices
are designed primarily for determining compliance with legal provisions
and budgetary
restrictions and as a means
of reporting on the
stewardship of public officials with respect to public funds.
Under this
method of accounting, the financial transactions and accounts of the
Borough of Middlesex are organized on the basis of funds and an account
group which is different from the fund structure required by GAAP. A fund
or account group is an accounting entity with a separate set of self-
balancing accounts established to record the financial position and results
of operation of a specific government activity. As required by the Division
of Local Government Services the Borough accounts for its financial
transactions through the following individual funds and account groups:
Current Fund - resources and expenditures for governmental operations
of a general nature, including grant funds.
Trust Fund - receipts, custodianship and disbursement of funds in
accordance with the purpose for which each reserve was created.
General Capital Fund - receipts and disbursement of funds for the
acquisition of general capital facilities, other than those acquired in the
Current Fund.
Swimming Pool Utility Operating and Capital Funds - account for the
operations and acquisition of capital facilities of the municipally-owned
swimming pool.
General Fixed Assets Account Group - utilized to account for property,
land, buildings and equipment that have been acquired by other
governmental funds.
Basis of Accounting
C.
The accounting principles and practices prescribed for municipalities by
the State of New Jersey differ in certain respects from generally accepted
accounting principles applicable to local government units.
The more
significant accounting policies and differences in the State of New Jersey
are as follows:
A modified accrual basis of accounting is followed with minor exceptions.
8


SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C.
Basis of Accounting (Continued)
NOTE 1:
Revenues - are recorded when received in cash except for certain
amounts which are due from other governmental units. Federal and State
grants are realized as revenue when anticipated in the Borough's budget.
Receivables for property taxes are recorded with offsetting reserves on
the balance sheet 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 revenue when
received.
GAAP requires revenues to be recognized in the accounting
period when they become susceptible to accrual, reduced by an
allowance for doubtful accounts.
Expenditures - are recorded on the "budgetary" basis of accounting.
General expenditures are recorded when an amount is encumbered for
goods or services through the issuances of a purchase order in
conjunction with the Encumbrance Accounting System.
Outstanding
encumbrances, at December 31, are reported as a cash liability in the
financial statements and constitute part of the Borough's regulatory
Appropriation
Reserve
balance.
Appropriation
reserves
covering
unexpended
appropriation
balances
are
automatically
created
at
December
31st of
each
year and recorded as liabilities, except for
amounts which may be canceled by the governing body. Appropriation
reserves are available, until lapsed at the close of the succeeding year, to
meet specific claims, commitments or contracts incurred during the
preceding fiscal year.
Lapsed appropriation reserves are recorded as
income.
Appropriations for principal payments on outstanding general
capital and utility bonds and notes are provided on the cash basis;
interest on general capital indebtedness is on the cash basis, whereas
interest on utility indebtedness is on the accrual basis.
Encumbrances - Contractual orders, at December 31, are reported as
expenditures through the establishment
of encumbrances payable.
Under GAAP, encumbrances outstanding at year end are reported as
reservations of fund balance because they do not constitute expenditures
or liabilities.
Foreclosed Property - is recorded in the Current Fund at the assessed
valuation when such property was acquired and is fully reserved. GAAP
requires such property to be recorded in the General Fixed Assets
Account Group at its market value.
Sale of Municipal Assets - The proceeds from the sale of municipal
assets can be held in a reserve until anticipated as a revenue in a future
budget. GAAP requires such proceeds to be recorded as a revenue in
the year of sale.
9


SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
NOTE 1:
Basis of Accounting (Continued)
C.
Interfunds - 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,
receivables in the other funds are not offset by reserves. GAAP does not
require the establishment of an offsetting reserve.
General Fixed Assets - N.J.A.C. 5:30-5.6 Accounting for Governmental
Fixed Assets, which differs in certain respects from generally accepted
accounting principles, requires the inclusion of a statement of general
fixed assets of the Borough as part of its basic financial statements.
General fixed assets are defined as non-expendable personal property
having a physical existence, a useful life of more than one year and an
acquisition
cost
of
$500.00
or
more
per
unit.
("infrastructure") general fixed assets consisting of certain improvements
other than buildings, such as roads, bridges, curbs and gutters, streets
and sidewalks and drainage system are not capitalized.
Interfund
Public
domain
Property and equipment acquired by the Current and General Capital
Funds are recorded as expenditures at the time of the purchase and are
not capitalized in their own respective funds. The Borough has valued its
land and buildings at assessed values. GAAP requires capital assets to
be recorded
at
their
historical
cost
or
estimated
historical
cost.
Additionally, GAAP requires depreciation to be calculated on capital
assets, with the exception of land.
General Fixed Assets that have been acquired and that are utilized in the
Current and General Capital Funds are instead accounted for in the
General Fixed Asset Account Group. No depreciation has been provided
on general fixed assets or reported in the financial statements.
Fixed assets acquired through grants in aid or contributed capital have
not been accounted for separately.
Inventories of Supplies - The costs of inventories of supplies for all funds
are recorded as expenditures at the time individual items are purchased.
The costs of inventories are not included on the various balance sheets.
GAAP requires the cost of inventories to be reported as a current asset
and equally offset by a fund balance reserve.
Fixed Capital - Swimming Pool Utility - Accounting for utility fund “fixed
capital” is done in compliance with N.J.A.C. 5:30-5.6.
Property and
equipment purchased by the Swimming Pool Utility Fund are recorded in
the capital account
at cost
and are adjusted for disposition and
abandonment.
reproduction costs or current value. The fixed capital reported is as taken
from the municipal records and does not necessarily reflect the true
condition of such fixed capital. Contributions in aid of construction are not
capitalized.
The amounts shown do
not purport to represent
10


SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
NOTE 1:
Basis of Accounting (Continued)
C.
Fixed Capital - Swimming Pool Utility (continued) - The balance in the
Reserve for Amortization and Deferred Reserve for Amortization accounts
in the utility capital fund represents changes to operations for the cost of
acquisitions of property, equipment, and improvements. The utility does
not record depreciation on fixed assets.
Accounting
and
Financial
Reporting for Pensions - Governmental
Accounting Standards Board (GASB) Statement No. 68 Accounting and
financial
reporting
for
pensions
administered
by
state
and
local
government employers improves accounting and financial reporting state
and local governments for pensions.
It also improves information
provided by state and local government employers about financial support
for pensions that is provided by other entities.
This Statement results
from a comprehensive review of the effectiveness of existing standards of
accounting and financial reporting for pensions with regard to providing
decision useful information, supporting assessments of accountability and
interperiod equity, and creating additional transparency.
Under GAAP, municipalities are required to recognize the pension liability
in Statements of Revenues, Expenses, Changes in Net Position (balance
sheets) and Notes to the Financial Statements in accordance with GASB
68. The liability required to be displayed by GASB 68 is displayed as a
separate line item in the Unrestricted Net Position area of the balance
sheet.
New Jersey’s municipalities and counties do not follow GAAP accounting
principles and, as such, do not follow GASB requirements with respect to
recording the net pension liability as a liability on their balance sheets.
However, N.J.A.C. 5:30 6.1(c) (2) requires municipalities to disclose
GASB 68 information in the Notes to the Financial Statements. The
disclosure must meet the requirements of GASB 68.
The New Jersey Division of Local Government Services issued Local
Finance Notice 2021-10 which allows local units to disclose the most
recently available information as it relates to the New Jersey Division of
Pensions & Benefits' reporting on GASB 68. As of the date of this report
the information for the period ended June 30, 2021 was not available,
therefore the information dated June 30, 2020 is disclosed.
11


SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
NOTE 1:
Basis of Accounting (Continued)
C.
Accounting and Financial Reporting for Postemplovment Benefits Other
Than Pensions (OPEB)
The Governmental Accounting Standards Board (GASB) has issued
Statement
No.
75,
“Accounting
and
Financial
Reporting
for
Postemployment
Benefits
Other
Than
Pensions".
This
statement
establishes standards for measuring and recognizing liabilities, deferred
outflows and inflows of resources, and expenses for postemployment
benefits other than pensions.
It also requires the State of New Jersey to calculate and allocate to each
participating member, for note disclosure purposes only, the OPEB net
liability of New Jersey Health Benefits Local Government Retiree Plan
(the Plan). The statement does not alter the amount of funds that must be
budgeted for OPEB payment under existing state law.
Under GAAP, municipalities are required to recognize the OPEB liability
in Statements of Revenues, Expenses, Changes in Net Position (balance
sheets) and Notes to the Financial Statements in accordance with GASB
75. The liability required to be displayed by GASB 75 is displayed as a
separate line item in the Unrestricted Net Position area of the balance
sheet.
New Jersey’s municipalities and counties do not follow GAAP accounting
principles and, as such, do not follow GASB requirements with respect to
recording the OPEB liability as a liability on their balance sheets.
However, N.J.A.C. 5:30 6.1(c) (2) requires municipalities to disclose
GASB 75 information in the Notes to the Financial Statements. The
disclosure must meet the requirements of GASB 75.
The New Jersey Division of Local Government Services issued Local
Finance Notice 2021-10 which allows local units to disclose the most
recently available information as it relates to the New Jersey Division of
Pensions & Benefits’ reporting on GASB 75. As of the date of this report
the information for the period ended June 30, 2021 was not available,
therefore the information dated June 30, 2020 is disclosed.
12


NOTE 1:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basic Financial Statements
D.
The GASB codification also
defines the financial statements of a
governmental unit to be presented in the general purpose financial
statements to be held in accordance with GAAP. The Township presents
the
financial
statements
listed
in
the
table
of
contents
of
the
"Requirements of Audit and Accounting Revision of 1987" as prescribed
by the Division of Local Government Services, Department of Community
Affairs, State of New Jersey and which differ from the financial statements
required by GAAP.
NOTE 2:
CASH AND CASH EQUIVALENTS
The Borough considers petty cash, change funds, and cash in banks, deposits in
the New Jersey Cash Management Fund and certificates of deposit as cash and
cash equivalents.
Deposits
New Jersey statutes permit the deposit of public funds in institutions
which are located in New Jersey and which meet the requirements of the
Governmental Unit Deposit Protection Act (GUDPA) or the State of New
Jersey Cash Management Fund. GUDPA requires a bank that accepts
public funds to be a public depository. A public depository is defined as a
state bank, a national bank, or a savings bank, which is located in the
State of New Jersey, the deposits of which are insured by the Federal
Deposit
Insurance
Corporation.
The
statutes
also
require
public
depositories to maintain collateral for deposits of public funds that exceed
certain insurance limits. All collateral must be deposited with the Federal
Reserve Bank or a banking institution that is a member of the Federal
Reserve System and has capital funds of not less than $25,000,000.00.
Under GUDPA, if a public depository fails, the collateral it has pledged,
plus the collateral of all other public depositories, is available to pay the
full amount of the deposits to the governmental unit.
The Borough of Middlesex had the following cash and cash equivalents at
December 31, 2021:
A.
Cash In Bank
Reconciling Items
Fund
Total
$
6,006,070.05
$
544,550.88
11,961.97
29,632.83
2,801,196.01
9,833.07
1,758,068.03
309,648.26
(177,881.09)
$
5,828,188.96
544,550.88
11,961.97
29,578.02
2,763,690.60
9,833.07
1,753,050.55
309,146.02
Current Fund
Grant Fund
Trust Assessment Fund
Animal Control Trust Fund
Trust Other Fund
Public Assistance Trust Fund
General Capital Fund
Swimming Pool Utility Operating Fund
(54.81)
(37,505.41)
(5,017.48)
(502.24)
(220,961.03)
$
11,250,000.07
$
11,470,96110
$
Total
13


CASH AND CASH EQUIVALENTS (CONTINUED)
NOTE 2:
Deposits (Continued)
A.
Custodial Credit Risk - Deposits - Custodial credit risk is the risk that in
the event of a bank failure, the deposits may not be returned.
The
Borough does not have a specific deposit policy for custodial credit risk
other than those policies that adhere to the requirements of statute. As of
December 31, 2021, based upon the coverage provided by FDIC and
NJGUDPA, no amount of the bank balance in the bank was exposed to
custodial credit risk. Of the cash balance in the bank, $250,000.00 was
covered by Federal Depository Insurance and $11,082,678.16 was
covered by NJGUDPA. The New Jersey Cash Management Fund is an
investment pool and is not insured by either FDIC or GUDPA.
The
Borough has $138,282.94 in the New Jersey Cash Management Fund.
B.
Investments
The purchase of investments by the Borough is strictly limited by the
express authority of the New Jersey Local Fiscal Affairs Law, N.J.S.A.
40A:5-15.1. Permitted investments include any of the following type of
securities:
Bonds or other obligations of the United States of America or
obligations guaranteed by the United States of America;
1.
Government money market mutual funds which are purchased
from an investment company
or investment trust which is
registered with the Securities and Exchange Commission under
the “Investment Company Act of 1940," 15 U.S.C. 80a-1 et seq.,
and operated in accordance with 17 C.F.R. § 270.2a-7 and which
portfolio is limited to U.S. Government securities that meet the
definition of an eligible security pursuant to 17 C.F.R. § 270.2a-7
and repurchase agreements that are collateralized by such U.S.
Government securities in which direct investment may be made
pursuant to paragraphs (1) and (3) of N.J.S.A. 5-15.1.
These
funds are also required to be rated by a nationally recognized
statistical rating organization.
2.
Any obligation that a federal agency or a federal instrumentality
has issued in accordance with an act of Congress, which security
has a maturity date not greater than 397 days from the date of
purchase, provided that such obligation bears a fixed rate of
interest not dependent on any index or other external factor.
3.
Bonds or other obligations of the Local Unit or bonds or other
obligations of school districts of which the Local Unit is a part or
within which the school district is located.
4.
14


CASH AND CASH EQUIVALENT (CONTINUED)
NOTE 2:
Investments (Continued)
B.
Bonds or other obligations, having a maturity date not more than
397 days from date of purchase, approved by the Division of Local
Government Services of the Department of Community Affairs for
investment by local units.
5.
Local government investment pools that are fully invested in U.S.
Government securities that meet the definition of eligible security
pursuant to 17 C.F.R. § 270a-7 and repurchase agreements that
are collateralized by such U.S. Government securities in which
direct investment may be made pursuant to paragraphs (1) and
(3) of N.J.S.A. 5-15.1. This type of investment is also required to
be rated in the highest category by a nationally recognized
statistical rating organization.
6.
Deposits with the State of New Jersey Cash Management Fund
established pursuant to section 1 of P.L. 1977, c. 281 (C. 52:18A-
90.4); or
7.
Agreements for the repurchase of fully collateralized securities if:
8.
the
underlying
securities
are
permitted
investments
pursuant to paragraphs (1) and (3) of this subsection;
a.
the custody of collateral is transferred to a third party;
b.
the maturity of the agreement is not more than 30 days;
c.
d.
the underlying securities are purchased through a public
depository as defined in section 1 of P.L. 1970, c. 236 (C.
17:19-41); and
a master repurchase agreement providing for the custody
and security of collateral is executed.
e.
The Borough of Middlesex’s investment activities during the year were in
accordance with the above New Jersey Statute.
As of December 31, 2021, the Borough has $138,282.94 on deposit with
the New Jersey Cash Management Fund. Based upon the limitations set
forth by New Jersey Statutes 40A:5-15.1 and existing investment
practices, the Borough is generally not exposed to credit risks, custodial
credit risks, concentration of credit risks and interest rate risk for its
investments nor is it exposed to foreign currency risk for its deposits and
investments.
15


MUNICIPAL DEBT
NOTE 3:
The Local Bond Law, Chapter 40A:2, governs the issuance of bonds to finance
general municipal capital expenditures,
installments within the statutory period of usefulness. All bonds issued by the
Borough are general obligation bonds, backed by the full faith and credit of the
Borough.
Bond Anticipation Notes, which are issued to temporarily finance
capital projects, are included in the below Summary of Municipal Debt and
Summary of Statutory Debt Condition Annual Debt Statement:
All bonds are retired in annual
YEAR 2019
YEAR 2021
YEAR 2020
Issued:
General:
Bonds, Notes and Loans
Swimming Pool Utility:
Bonds, Notes and Loans
$
13,664,927.82 $
13,685,144.61 $
14,208,073.47
663,500.00
539,000.00
785,000.00
14,203,927.82
14,348,644.61
14,993,073.47
Less:
Reserve for Payment of Debt Service
56,943.53
14,146,984.29
14,348,644.61
14,993,073.47
Authorized but not Issued
General:
Bonds, Notes and Loans
Swimming Pool Utility:
Bonds, Notes and Loans
3,997,531.79
3,369,421.05
3,340,196.90
250,000.00
250,000.00
250,000.00
4,247,531.79
3,619,421.05
3,590,196.90
Total Authorized but not Issued
Net Bonds and Notes Issued and
and Authorized but not issued
$
18,394,516.08 $
17,968,065.66 $
18,583,270.37
16


NOTE 3: MUNICIPAL DEBT (CONTINUED)
SUMMARY OF STATUTORY DEBT CONDITION ANNUAL DEBT STATEMENT
The summarized statement of debt condition which follows is prepared in accordance with the
required method of setting up the Annual Debt Statement and indicates a statutory net debt
of 1.025%:
Net Debt
Gross Debt
Deductions
435,000.00
$
789,000.00
56,943.53
17,605,516.08
$
435,000.00
$
789,000.00
17,662,459.61
Local School District Debt
Swimming Pool Utility Debt
General Debt
$
18,886,459.61
$
1,280,943.53
$
17,605,516.08
Net debt $17,605,516.08 divided
by
equalized valuation
basis
per
N.J.S.
40A:2-2,
$1,717,944,670.67 equals 1.025%
Borrowing Power Under N.J.S.A. 40A:2-6 as Amended
$
1,717,944,670.67
Equalized Valuation Basis - December 31, 2021
$
60,128,063.47
3 1/2% of Equalized Valuation Basis
17,605,516.08
Net Debt
$
42,522,547.39
Remaining Borrowing Power
Equalized Valuation Basis is the average of the equalized valuation of real estate,
including improvements and the assessed valuation of Class II railroad property of the
Borough of Middlesex for the last three (3) preceding years.
17


NOTE 3: MUNICIPAL DEBT (CONTINUED)
LONG-TERM DEBT
General Serial Bonds:
$2,878,000.00 in General Obligation Bonds dated July 16, 2015,
due in annual remaining installments ranging between $301,000.00
and $326,500.00 due on July 15 each year with interest rates from
2.000% to 2.500%.
$
1,254,000.00
$3,700,000.00 in General Obligation Refunding Bonds dated
December 19, 2019, due in annual remaining installments ranging
Between $740,000.00 and $750,000.00 due on February 15 each
Year with interest rates from 4.000% to 5.000%.
2,990,000.00
$
4,244,000.00
Swimming Pool Utility Serial Bonds:
$1,235,000.00 in General Obligation Bonds dated July 16, 2015,
due in annual remaining installments ranging between $129,000.00
and $141,500.00 due on July 15 each year with interest rates from
2.000% to 2.500%.
$
539,000.00
$
539,000.00
BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
At December 31, 2021, the Borough has authorized but not issued bonds and notes as
follows:
$
3,997,531.79
250,000.00
General Capital Fund
Swimming Pool Capital Fund
$
4,247,531.79
Total
18


NOTE 3:
MUNICIPAL DEBT (CONTINUED)
CALCULATION OF "SELF-LIQUIDATING PURPOSE" SWIMMING POOL UTILITY
PER N.J.SA. 40A:2-45
Cash Receipts from Fees, Rents or Other
Charges for Year and Anticipated Surplus
Deductions:
Operation and Maintenance
Debt Service
Total Deductions
$
558,461.66
$
384,000.00
78,528.00
462,528.00
$
95,933.66
Excess in Revenue - Self-Liquidating
SCHEDULE OF ANNUAL DEBT SERVICE FOR PRINCIPAL AND INTEREST
FOR BONDED DEBT ISSUED AND OUTSTANDING
Swim Pool Utility Capital
General Capital
Total
Principal
Interest
Principal
Interest
Year
$
1,337,775.00
1,310,750.00
1,289,450.00
1,248,450.00
$ 12,170.00
9,590.00
6,950.00
3,537.50
$ 129,000.00
132,000.00
136,500.00
141,500.00
$
155,605.00
116,160.00
72,500.00
26,912.50
2022
$
1,041,000.00
2023
1,053,000.00
2024
1,073,500.00
2025
1,076,500.00
$ 32,247.50
$
5,186,425.00
$
539,000.00
$
371,177.50
Total
$
4,244,000.00
GREEN TRUST LOANS
1989 Loan Program
LOAN
PRINCIPAL
INTEREST
CALENDAR
YEAR
LOAN
TOTAL
12,996.28
6,498.12
$
12,677.13
$
6,433.82
319.15
64.30
2022
2023
383.45
$
19,494.40
$
19,110.95
$
19


MUNICIPAL DEBT (CONTINUED)
NOTE 3:
ENVIRONMENTAL INFRASTRUCTURE TRUST LOANS
FUND
CALENDAR
YEAR
TRUST LOAN
LOAN
TOTAL
PRINCIPAL
INTEREST
PRINCIPAL
$
44,559.05
$
34,870.76
$
45,607.96
$
55,174.08
55,041.02
95,891.46
93,488.90
56,829.85
5,724.45
3,444.06
1,788.83
2022
2023
2024
$
155,823.06
$
10,957.34
$
79,429.81
$
246,210.21
MIDDLESEX COUNTY IMPROVEMENT AUTHORITY CAPITAL LEASE
CALENDAR
YEAR
LOAN
PRINCIPAL
LOAN
INTEREST
TOTAL
17,400.00
$
232,400.00
8,800.00
228,800.00
$
215,000.00
$
220,000.00
2022
2023
$
435,000.00
$
26,200.00
$
461,200.00
In accordance with NJSA 40A:2-8.1, a local unit may, in anticipation of the
issuance of bonds, borrow money and issue notes if the bond ordinance or
subsequent resolution so provides.
Any such note shall be designated as a
"bond anticipation note" and shall be subject to the following provisions:
(1) every note shall contain a recital that it is issued for a period not exceeding
one year and may be renewed from time to time for additional periods, none
of which shall exceed one year;
(2) all such notes, including renewals, shall mature and be paid not later than
the first day of the fifth month following the close of the tenth fiscal year next
following the date of the original notes; and
(3) no such notes shall be renewed beyond the third anniversary date of the
original notes unless an amount of such notes, at least equal to the first
legally payable installment of the bonds in anticipation of which those notes
are issued, is paid and retired on or before each subsequent anniversary date
beyond which such notes are renewed from funds other than the proceeds of
obligations.
The Borough had the following outstanding bond anticipation note(s) at year end:
Interest Rate
Maturity Date
Amount
1.00%
06/23/22
$
7,832,673.00
General Capital
20


NOTE 4:
FUND BALANCES APPROPRIATED
Fund balance, at December 31, 2021, which was appropriated and included as
anticipated revenue in its own respective fund for the year ending December 31,
2022, was $1,600,000.00 for the Current Fund and $61,528.00 for the Swimming
Pool Utility Operating Fund.
PROPERTY TAXES
NOTE 5:
Property Taxes attach as an enforceable lien on property as of January 1. Taxes
are levied based on the final adoption of the current year municipal budget, and
payable in four installments on February 1, May 1, August 1 and November 1.
The Borough bills and collects its own property taxes and also the taxes for the
County and the Local School District. The collections and remittance of county
and school taxes are accounted for in the Current Fund. Borough property tax
revenues are recognized when collected in cash and any receivables are
recorded with offsetting reserves on the balance sheet of the Borough's Current
Fund.
Taxes Collected in Advance - Taxes collected in advance and recorded as cash
liabilities in the financial statements are as follows:
Balance
December
31. 2021
Balance
December
31, 2020
$
216,614.57
$
334,690.95
Prepaid Taxes
21


NOTE 6:
PENSION PLANS
Substantially
all
eligible
employees
participate in the
Public Employees'
Retirement System (PERS), or the Police, Firemen's Retirement System (PFRS)
or the Defined Contribution Retirement System (DCRP), which have been
established by state statute and are administered by the New Jersey Division of
Pensions and Benefits. The Division issues a publicly available financial report
that includes the financial statements and required supplementary information for
the Public Employees Retirement System, Police and Firemen's Retirement
System and Consolidated Police and Firemen's Pension Fund. These reports
may be obtained by writing to the Division of Pensions and Benefits, P.O.
Box
295,
Trenton,
New
Jersey,
08625
or
are
available
online
at
www.ni.gov/treasurv/pensions/annrprts.shtml.
Public
Employees'
Retirement
System
(PERS) - The
Public Employees'
Retirement System (PERS) was established as of January 1, 1955, under the
provisions of N.J.S.A. 43:15A, to provide retirement, death, disability and medical
benefits to certain qualified members. The PERS is a cost-sharing multiple
employer
plan.
Membership
is
mandatory
for
substantially,
all
full-time
employees of the State of New Jersey or any county, municipality, school district
or public agency, provided the employee is not required to be a member of
another state-administered retirement system or other state pension fund or local
jurisdiction's pension fund.
Police and Firemen's Retirement System (PFRS) - The Police and Firemen's
Retirement System (PFRS) was established as of July 1, 1944, under the
provisions of N.J.S.A. 43:16A. to provide retirement, death, and disability benefits
to its members. The PFRS is a cost-sharing multiple-employer plan. Membership
is mandatory for substantially, all full-time county and municipal police or firemen
or officer employees with police powers appointed after June 30, 1944.
Defined Contribution Retirement Program (DCRP) - The Defined Contribution
Retirement Program (DCRP) was established July 1, 2007, under the provisions
of Chapter 92, P.L. 2007 and Chapter 103, P.L 2007, and was expanded under
the provisions of Chapter 89, P.L. 2009. The DCRP provides eligible employees
and their beneficiaries with a tax-sheltered, defined contribution retirement
benefit, along with life insurance coverage and disability coverage.
Vesting and Benefit Provisions
The vesting and benefit provisions for PERS are set by N.J.S.A. 43:15A and
43:36. All benefits vest after ten years of service, except for medical benefits,
which vest after 25 years of service. Members may seek early retirement after
achieving 25 years of service credit or they may elect deferred retirement after
achieving ten years of service credit, in which case, benefits would begin the first
day of the month after the member attains normal retirement age.
22


PENSION PLANS
NOTE 6:
Vesting and Benefit Provisions (Continued)
The vesting and benefit provisions for PFRS are set by N.J.S.A. 43:16A and
43:36. All benefits vest after ten years of service, except for disability benefits,
which vest after four years of service. Retirement benefits for age and service are
available at age 55. Members may seek special retirement after achieving 25
years of creditable service or they may elect deferred retirement after achieving
ten years of service.
Newly elected or appointed officials that have an existing DCRP account, or are
a member of another State-administered retirement system are immediately
vested in the DCRP. For newly elected or appointed officials that do not qualify
for immediate vesting in the DCRP, employee and employer contributions are
held during the initial year of membership. Upon commencing the second year of
DCRP membership, the member is fully vested. However, if a member is not
eligible to continue in the DCRP for a second year of membership, the member
may apply for a refund of the employee contributions from the DCRP, while the
employer contributions will revert back to the employer. Employees are required
to contribute 5.5% of their base salary and employers contribute 3.0%.
Funding Policy
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 life insurance benefits is based on
actual claims paid. For fiscal year 2021, 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.
During
2021,
PERS
provides
for
employee
contributions of 7.50% of employees' base salary.
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. The local employers’ contribution amounts
are based on an actuarially determined rate, which includes the normal cost and
unfunded accrued liability. For the fiscal year 2021, the State contributed an
amount less than the actuarially determined amount. During 2021, PFRS
provides for employee contributions of 10.00% of employees' base salary.
The Borough's share of pension, which is based upon the annual billings
received from the State, amounted to $1,559,422 for 2021, $1,368,010 for 2020,
and $4,260,490 for 2019.
Certain Borough employees are also covered by the Federal Insurance
Contribution Act.
23


PENSION PLANS (CONTINUED)
NOTE 6:
Accounting and Financial Reporting for Pensions- GASB 68
As of the date of this report, the New Jersey Division of Pension and Benefits has
not provided updated actuarial valuations for pensions for the year ended June
30, 2021. 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, 2020.
The Governmental Accounting Standards Board (GASB) has issued Statement
No. 68 “Accounting and Financial Reporting for Public Employees Pensions”
which requires the State of New Jersey to calculate and allocate, for note
disclosure purposes only, the unfunded net pension liability of Public Employees
Retirement System (PERS) and the Police and Firemen’s Retirement System
(PFRS) of the participating municipality as of December 31, 2020.
The
statement does not alter the amounts of funds that must be budgeted for pension
payments under existing state law.
Under accounting principles and practices prescribed by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey,
any unfunded net pension liability of the municipality, allocated by the State of
New Jersey, is not required to be reported in the financial statements as
presented and any pension contributions required to be paid are raised in that
year’s budget and no liability is accrued at December 31, 2020.
Public Employees Retirement System (PERS)
At June 30, 2020, the State reported a net pension liability of $6,384,516.00 for
the Borough ’s proportionate share of the total net pension liability. The total
pension liability for the June 30, 2020 measurement date was determined by 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 a projection of
the Borough’s long-term share of contributions to the pension plan relative to the
projected contributions of all participating employers, actuarially determined. At
June 30, 2020, the Borough’s proportion was 0.0391510737 percent, which was
a decrease of 0.0001166153 percent from its proportion measured as of June 30,
2019.
For the year ended June 30, 2020, the State recognized an actuarially
determined pension expense of $444,687.00 for the Borough ’s proportionate
share of the total pension expense. The pension expense recognized in the
Borough’s
financial
statements
based
on the April 1,
2020
billing was
$464,828.00.
24


NOTE 6:
PENSION PLANS (CONTINUED)
Accounting and Financial Reporting for Pensions - GASB 68 (Continued)
Public Employees Retirement System (PERS) (Continued)
At June 30, 2020, the State reported deferred outflows of resources and deferred
inflows of resources related to PERS from the following sources:
Deferred
Outflow of
Resources
Deferred
Inflow of
Resources
Differences between expected and actual
experience
Changes of assumptions
Net difference between projected and actual
earnings on pension plan investments
Changes in proportion and differences
between Borough contributions and
proportionate share of contributions
116,252
$
207,121
$
22,578
2,673,257
218,228
202,676
643,770
$
1,185,371
$
2,898,511
Other local amounts reported by the State as the Borough’s proportionate share
of deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in the State’s actuarially calculated pension expense
as follows:
Year Ended
June 30,
Amount
($578,420)
(551,696)
(329,468)
(209,767)
(43,789)
2021
2022
2023
2024
2025
($1,713,140)
25


PENSION PLANS (CONTINUED)
NOTE 6:
Accounting and Financial Reporting for Pensions - GASB 68 (Continued)
Public Employees Retirement System (PERS) (Continued)
Actuarial Assumptions
The total pension liability for the June 30, 2020 measurement date was
determined by an actuarial valuation as of July 1, 2019, which rolled forward to
June 30, 2020. These actuarial valuations used the following assumptions:
June 30. 2020
Inflation
Price
Wage
2.75%
3.25%
Salary Increases
Through 2026
Thereafter
2.00-6.00%
3.00-7.00%
Based on
Years of Service
7.00%
Investment Rate of Return
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.
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.
26


PENSION PLANS (CONTINUED)
NOTE 6:
Accounting and Financial Reporting for Pensions - GASB 68 (Continued)
Public Employees Retirement System (PERS) (Continued)
Long-Term Rate of Return
In accordance with State statute, the long-term expected rate of return on plan
investments (7.00% at both June 30, 2020 and June 30, 2019) is determined by
the State Treasurer, after consultation with the Directors of the Division of
Investment and Division of Pensions and Benefits, the board of trustees and the
actuaries. The long-term expected rate of return was determined using a building
block method in which best-estimate ranges of expected future real rates of
return (expected returns, net of pension plan investment expense and inflation)
are developed for each major asset class. 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
Expected Real
Rate of Return
Target
Allocation
Assets Class
7.71%
8.57%
10.23%
11.42%
9.73%
9.56%
5.95%
7.59%
2.67%
0.50%
1.94%
3.40%
US Equity
Non-U.S. Developed Market Equity
Emerging Market Equity
Private Equity
Real Assets
Real Estate
High Yield
Private Credit
Investment Grade Credit
Cash Equivalents
U.S. Treasury’s
Risk Mitigation Strategies
27.00%
13.50%
5.50%
13.00%
3.00%
8.00%
2.00%
8.00%
8.00%
4.00%
5.00%
3.00%
Discount Rate
The discount rate used to measure the total pension liability was 7.00% and
6.28% as of June 30, 2020 and June 30, 2019, respectively. 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 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.
27


NOTE 6:
PENSION PLANS (CONTINUED)
Accounting and Financial Reporting for Pensions - GASB 68 (Continued)
Public Employees Retirement System (PERS) (Continued)
Sensitivity of the Borough's proportionate share of net pension liability to
changes in the discount rate
The following presents the Borough’s proportionate share of the net pension
liability
of the participating employers as of June 30, 2020 respectively,
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
was
calculated using
a
discount rate
that
is
1-percentage
point
lower
or 1-percentage point higher than the current rate:
June 30, 2020
At Current
Discount Rate
7.00%
1%
1%
Increase
8.00%
Decrease
6.00%
Borough's proportionate share
of the pension liability
$8,037,041.00
$6,384,516.00
$4,982,315.00
Pension plan fiduciary net position
Detailed information about the pension plan’s fiduciary net position is available in
the separately issued Financial Report for the State of New Jersey Public
Employees Retirement System (PERS). The report may be obtained at State of
New Jersey Division of Pensions and Benefits P.O. Box 295 Trenton, New
Jersey 08625-0295 http://www.state.ni.us/treasurv/pensions.
Police and Firemen’s Retirement System (PFRS)
At June 30, 2020, the State reported a net pension liability of $12,324,220.00 for
the Borough 's proportionate share of the total PFRS net pension liability. The
total pension liability for the June 30, 2020 measurement date was determined by
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 a
projection of the Borough's long-term share of contributions to the pension plan
relative to the projected contributions of all participating employers, actuarially
determined.
28


PENSION PLANS (CONTINUED)
NOTE 6:
Accounting and Financial Reporting for Pensions - GASB 68 (Continued)
Police and Firemen’s Retirement System (PFRS) (Continued)
At June 30, 2020, the Borough’s proportion was 0.0953789652 percent, which
was an increase of 0.0055746404 percent from its proportion measured as of
June 30, 2019.
For the year ended June 30, 2020, the State recognized an actuarially
determined pension expense of $1,208,329.00. The pension expense recognized
in the Borough’s financial statements based on the April 1, 2020 billing was
$953,817.00.
At June 30, 2020, the State reported deferred outflows of resources and deferred
inflows of resources related to PFRS from the following sources:
Deferred
Outflow of
Resources
Deferred
Inflow of
Resources
Differences between expected and actual
experience
Changes of assumptions
Net difference between projected and actual
earnings on pension plan investments
Changes in proportion and differences
between Borough contributions and
proportionate share of contributions
124,249
$
31,014
$
44,230
3,304,050
722,627
1,891,047
82,005
$
2,768,937
$
3,430,285
Other amounts reported as deferred outflows of resources and deferred inflows
of resources related to pensions will be recognized in pension expense as
follows:
Year Ended
June 30
Amount
(570,465)
(326,253)
66,692
163,707
4,971
2021
$
2022
2023
2024
2025
(661,348)
$
29


NOTE 6:
PENSION PLANS (CONTINUED)
Accounting and Financial Reporting for Pensions - GASB 68 (Continued)
Police and Firemen’s Retirement System (PFRS) (Continued)
Actuarial Assumptions
The total pension liability for the June 30, 2020 measurement date was
determined by an actuarial valuation as of July 1, 2019, which rolled forward to
June 30, 2020. This actuarial valuation used the following assumptions:
June 30. 2020
Inflation:
Price
Wage
2.75%
3.25%
Salary Increases
Through All Future Years
3.25-15.25%
Based on Years of
Service
7.00%
Investment Rate of Return
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. For healthy annuitants, 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, 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.
30


PENSION PLANS (CONTINUED)
NOTE 6:
Accounting and Financial Reporting for Pensions - GASB 68 (Continued)
Police and Firemen's Retirement System (PFRS) (Continued)
Long-Term Rate of Return
In accordance with State statute, the long-term expected rate of return on plan
investments (7.00 percent at June 30, 2020 and June 30, 2019) is determined by
the State Treasurer, after consultation with the Directors of the Division of
Investment and Division of Pensions and Benefits, the board of trustees and the
actuaries. The long-term expected rate of return was determined using a building
block method in which best-estimate ranges of expected future real rates of
return (expected returns, net of pension plan investment expense and inflation)
are developed for each major asset class. 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
Expected Real
Rate of Return
Target
Allocation
Assets Class
7.71%
8.57%
10.23%
11.42%
9.73%
9.56%
5.95%
7.59%
2.67%
0.50%
1.94%
3.40%
27.00%
13.50%
5.50%
13.00%
3.00%
8.00%
2.00%
8.00%
8.00%
4.00%
5.00%
3.00%
US Equity
Non-U.S. Developed Market Equity
Emerging Market Equity
Private Equity
Real Assets
Real Estate
High Yield
Private Credit
Investment Grade Credit
Cash Equivalents
U.S. Treasury’s
Risk Mitigation Strategies
31


PENSION PLANS (CONTINUED)
NOTE 6:
Accounting and Financial Reporting for Pensions - GASB 68 (Continued)
Police and Firemen's Retirement System (PFRS) (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.00% and
6.85% as of June 30, 2020 and June 30, 2019, respectively. 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 actuariaily determined contributions for the State employer
and 100% of actuariaily determined contributions for the local employers. Based
on those assumptions, the plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on plan investments was applied
to all projected benefit payments to determine the total pension liability.
Sensitivity of the 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
of the participating employers as of June 30, 2020 respectively,
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
was calculated using a
discount rate that is 1-percentage
point
lower
or 1-percentage point higher than the current rate:
June 30, 2020
At Current
Discount Rate
7.00%
1%
1%
Increase
8.00%
Decrease
6.00%
Borough's proportionate share
ofthePFRS pension liability
$16,388,676.00
$12,324,220.00
$8,948,379.00
32


NOTE 6:
PENSION PLANS (CONTINUED)
Accounting and Financial Reporting for Pensions - GASB 68 (Continued)
Police and Firemen’s Retirement System (PFRS) (Continued)
Special Funding Situation
In accordance with 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.c. 2001, Chapter 86, P.L. 2001,
Chapter 511, P.L. 1991, Chapter 109, P.c. 1979, Chapter 247, P.L. 1993 and
Chapter 201, P.L. 2001. The amounts contributed by the State on behalf of the
Borough under this legislation is considered to be a special funding situation as
defined by GASB Statement No. 68, and the State is treated as a nonemployer
contributing entity. Since the Borough does not contribute under this legislation
directly to the plan (except for employer specific financed amounts), there is no
net pension liability or deferred outflows or inflows to disclose in the notes to the
financial statements of the Borough related to this legislation.
At June 30, 2020 and 2019, the State's proportionate share of the net pension
liability attributable to the Borough for the PFRS special funding situation is
$1,912,663.00 and $1,735,356.00, respectively.
At June 30, 2020, the Borough's and State of New Jersey's proportionate share
of the PFRS net pension liability were as follows:
$12,324,220.00
Borough’s Proportionate Share of Net Pension Liability
State of New Jersey Proportionate Share of
Net Pension Liability Associated with the Borough
1,912,663.00
$14,236,883.00
Pension plan fiduciary net position
Detailed information about the pension plan's fiduciary net position is available in
the separately issued Financial Report for the State of New Jersey Police and
Firemen’s Retirement System (PFRS). The report may be obtained at State of
New Jersey Division of Pensions and Benefits P.O. Box 295 Trenton, New
Jersey 08625-0295 http://www.state.ni.us/treasury/pensions.
33


NOTE 7:
COMPENSATED ABSENCES
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
$106,139.11 for 2021.
This
amount represents the current
value of all
accumulations and is not intended to portray amounts that 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 entitled to
compensation hours capped at a maximum of 480 hours per officer. The
estimated cost of such compensation would approximate $370,743.22 for 2021.
NOTE 8:
DEFERRED COMPENSATION PLAN
The Borough offers its employees a deferred compensation plan created in
accordance with Internal Revenue Code Section 457. The plan, available to all
Borough employees, permits them to defer a portion of their salaries until future
years. The Borough does not make any contribution to the plan. The deferred
compensation is not available to employees until retirement, death, disability,
termination or financial hardships.
In accordance with the requirements of the Small Business Job Protection Act of
1996 and the funding requirements of Internal Revenue Code Section 457(g), the
Borough's Plan was amended to require that all amounts of compensation
deferred under the Plan are held for the exclusive benefits of plan participants
and beneficiaries.
All assets and income under the Plan are held in trust, in
annuity contracts or custodial accounts.
The accompanying financial statements do not include the Borough's Deferred
Compensation Plan activities. The Borough’s Deferred Compensation Plan is
fully contributory and the Borough has no liabilities in conjunction with the plan.
NOTE 9:
LITIGATION
The Borough’s Attorney’s letters did not indicate any litigation, claims or
contingent liabilities which would materially affect the financial statements of the
Borough.
NOTE 10:
TAX APPEALS
There are tax appeals filed with the State Tax Court of New Jersey requesting a
reduction of assessments for 2021.
Any reduction in assessed valuation will
result in a refund of prior year’s taxes in the year of settlement, which may be
funded from current tax revenues, through the establishment of a reserve, or by
the issuance of refunding bonds per N.J.S.A. 40A:2-51.
The Borough has a
reserve of $24,496.20 at December 31, 2021.
34


NOTE 11:
CONTINGENT LIABILITIES
The Borough participated in several federal and state financial assistance grant
programs. Entitlement to the funds is generally conditional upon compliance with
terms and conditions of the grant agreements and applicable regulations,
including the expenditure of funds for eligible purposes.
These programs are
also subject to compliance and financial audits by the grantors or their
representatives.
As of December 31, 2021, the Borough does not believe that
any material liabilities will result from such audits.
NOTE 12:
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.
The Borough maintains insurance coverage through the
Middlesex County Joint Insurance Fund (JIF) covering each of those risks of
loss.
Management believes such coverage is sufficient to preclude any
significant uninsured losses to the Borough. Settled claims have not exceeded
this commercial coverage in any of the past three fiscal years.
New Jersey Unemployment Compensation Insurance - The Borough has elected
to fund its New Jersey Unemployment Compensation Insurance under the
“Benefit Reimbursement Method”.
Under this plan, the Borough is required to
reimburse the New Jersey Unemployment Trust Fund for benefits paid to its
former employees and charged to its account with the State.
The Borough is
billed quarterly for amounts due to the State. Below is a summary of Borough’s
contributions, employee contributions, reimbursements to the State for benefits
paid, and the ending balance of the Borough’s expendable trust fund for the
current and previous two years:
Amount
Reimbursed
Ending
Balance
Year
Contributions
1,164.09
$
2,072.31
2,688.95
3,236.62
$
190,544.51
4,301.88
8,636.23
2021
$
2020
192,617.04
194,846.61
2019
ACCOUNTING AND FINANCIAL REPORTING
FOR
POSTEMPLOYMENT
BENEFITS OTHER THAN PENSIONS- GASB 75
NOTE 13:
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, 2021. 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, 2020.
35


GASB
75:
POST-EMPLOYMENT
BENEFITS
OTHER
THAN
PENSIONS
(CONTINUED)
NOTE 13:
The Governmental Accounting Standards Board (GASB) has issued Statement
No. 75, “Accounting and Financial Reporting for Postemployment Benefits Other
Than Pensions” which is effective for fiscal years beginning after June 15, 2017.
This statement establishes standards for measuring and recognizing liabilities,
deferred outflows and inflows of resources, and expenses for postemployment
benefits other than pensions. OPEB obligations are non-pension benefits that
the municipality has contractually or otherwise agreed to provide employees
once they have retired and, in most instances, will be for retirement health,
prescription and dental insurance coverage.
Under current New Jersey budget and financial reporting requirements, the
municipality is not required to fund any amounts in excess of their current costs
on a pay-as-you-go basis or to accrue funds, create a trust or issue debt to
finance their other post-employment benefit liability. Additionally, the municipality
is not required to recognize any long-term obligations resulting from OPEB on
their financial statements.
Plan Description and Benefits Provided
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.
The Plan meets the definition of an equivalent arrangement as defined in
paragraph 4 of GASB Statement No. 75, Accounting and Financial Reporting for
the Postemployment Benefits Other Than Pensions-, therefore, assets are
accumulated to pay associated benefits.
The Plan provides medical and prescription drug coverage to retirees and their
covered dependents of the 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.
36


GASB
75:
POST-EMPLOYMENT
BENEFITS
OTHER
THAN
PENSIONS
(CONTINUED)
NOTE 13:
Plan Description and Benefits Provided (Continued)
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.L1989.
Contributions
The Borough’s contributions to SHBP for the years ended December 31, 2021
were $884,361.23, which equaled the required contributions for the year.
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.
Total OPEB Liability
The Borough’s total OPEB liability of $21,873,511 was measured as of June 30
2020, and was determined by an actuarial valuation as of that date.
37


NOTE 13:
GASB
75:
POST-EMPLOYMENT
BENEFITS
OTHER
THAN
PENSIONS
(CONTINUED)
Actuarial Assumptions
The total OPEB liability as of June 30, 2020 was determined by an actuarial
valuation as of July 1, 2019, which was rolled forward to June 30, 2020. 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 period measurements:
2020 and 2019
2.50%
Inflation rate
Salary Increases*:
Public Employees Retirement System (PERS):
Initial Fiscal Year Applied
Rate Through 2026
Rate Thereafter
2.00% to 6.00%
3.00% to 7.00%
Police and Firemen's Retirement System (PFRS):
Rate for All Future Years
3.25% to 15.25%
Mortality:
PERS
Pub-2010 General classification headcount weighted mortality
with fully generational mortality improvement projections from
the central year using scale MP-2020
PFRS
Pub-2010 Safety classification headcount weighted mortality
with fully generational mortality improvement projections from
the central year using scale MP-2020
‘Salary increases are based on years of service within the respective plan.
Actuarial assumptions used in the July 1, 2019 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 is initially 5.6% and decrease to a
4.5% long-term trend rate after seven years. For post-65 medical benefits, the
actual fully-insured Medicare Advantage trend rates for fiscal year 2021 through
2022 are reflected. The rates used for 2023 and 2024 are 21.83% and 18.53%,
respectively, trending to 4.5% for all future years. For prescription drug benefits,
the initial trend rate is 7.00% and decreases to a 4.5% long-term trend rate after
seven years.
38


GASB
75:
POST-EMPLOYMENT
BENEFITS
OTHER
THAN
PENSIONS
(CONTINUED)
NOTE 13:
Discount Rate
The discount rate for June 30, 2020 was 2.21%. This represents the municipal
bond return rate as chosen by the State. The source is the Bond Buyer Go 20-
Bond Municipal Bond Index, which includes tax-exempt general obligation
municipal bonds with an average rating of AA/Aa or higher. As the long-term rate
of return is less than the municipal bond rate, it is not considered in the
calculation of the discount rate, rather the discount rate is set at the municipal
bond rate.
Sensitivity of the Total OPEB liability to changes in the discount rate and
healthcare cost trend rates
The following presents the collective net OPEB liability of the Borough, as well as
what the Borough’s total OPEB liability would be if it were calculated using a
discount rate that is 1-percentage-point lower (1.21 percent) or 1-percentage
point higher (3.21 percent) than the current discount rate:
June 30, 2020
1.00%
Increase (3.21%1
1.00%
Decrease (1.21)
At Discount
Rate (2.21)
$25,859,111.00
$21,873,511.00
$18,718,546.00
Total OPEB Liability
Sensitivity of the Total OPEB liability to changes in the healthcare cost trend
rates
The following presents the net OPEB liability of the Borough, as well as what the
Borough’s total OPEB liability would be if it were calculated using healthcare cost
trend rates that are 1-percentage-point lower or 1-percentage-point higher than
the current healthcare cost trend rates:
June 30, 2020
Healthcare Cost
Trend Rate
1.00%
Increase
1.00%
Decrease
Total OPEB
$26,814,513.00
$18,100,353.00
$21,873,511.00
39


GASB
75:
POST-EMPLOYMENT
BENEFITS
OTHER
THAN
PENSIONS
(CONTINUED)
NOTE 13:
At June 30, 2020, the Borough reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred
Outflow of
Resources
Deferred
Inflow of
Resources
Differences between expected and actual
experience
Changes of assumptions
Net difference between projected and actual
earnings on pension plan investments
Changes in proportion
$
576,131.00
$
4,073,256.00
3,271,589.00
4,864,331.00
13,891.00
1,944,736.00
2,476,906.00
$
5,806,347.00
$
11,414,493.00
Other amounts reported as deferred outflows of resources and deferred inflows
of resources related to pensions will be recognized in pension expense as
follows:
Year Ended
June 30
Amount
2021
$
(1,280,421.00)
(1,281,488.00)
(1,283,385.00)
(1,284,721.00)
(822,357.00)
344,226.00
2022
2023
2024
2025
Thereafter
$
(5,608,146.00)
OPEB Plan Fiduciary Net Position
Detailed information about the OPEB plan’s fiduciary net position is available in
the separately issued Financial Report for the State of New Jersey State Health
Benefits Local Government Retired Employees Plan. The report may be obtained
at State of New Jersey Division of Pensions and Benefits P.O. Box 295 Trenton,
New Jersey 08625-0295 http://www.state.nj.us/treasurv/pensions.
40


NOTE 14:
DEFERRED SCHOOL TAXES
School taxes raised in the calendar year for the school fiscal year (July 1 to June
30) which remain unpaid at December 31 may be deferred to current fund
balance in an amount not exceeding fifty percent (50%) of the levy providing the
school district has not requisitioned the funds.
The balance of unpaid local
school taxes levied, amount deferred and the amount reported as a liability
(payable) at December 31, 2021, are as follows:
$13,416,680.00
12.568,492.00
Total Balance of Local Tax
Deferred Taxes
Local Tax Payable
$
848 188 00
NOTE 15:
INTERFUND RECEIVABLES AND PAYABLES
The following interfund balances remained on the balance sheet at December
31, 2021:
Interfund
Receivable
Interfund
Payable
Fund
$
$
232,455.99
27,236.52
82,780.18
Current Fund
Grant Fund
Assessment Trust Fund
Animal Control Fund
Trust Other Fund
Payroll Trust Fund
General Capital Fund
Swim Pool Utility Operating Fund
Swim Pool Utility Capital Fund
7,866.20
18,530.22
602,105.67
70.11
645,196.93
114,518.62
94,320.11
7,164.08
94,320.11
$
963,282.37
$
963,282.37
All balances resulted from the time lag between the dates that short-term loans
were disbursed and payments between funds were made.
41


LENGTH OF SERVICE AWARDS PROGRAM
NOTE 16:
The Borough of Middlesex adopted an ordinance establishing a Length of
Service Awards Program for the members of the Middlesex Fire Department
pursuant to N.J.S.A. 40A:14-183 et seq.
All assets of the plan are held by an independent administrator, the Lincoln
Financial Advisers.
Under this program, each volunteer that performs the minimum amount of
service will have an annual amount of $1,150.00 deposited into a tax deferred
income account that will earn interest for the volunteer. The cost amounted to
$55,200.00 in 2021.
The accompanying financial statements do not include the Borough’s Length of
Service Awards Program's activities. The Borough’s Length of Service Awards
Program’s financial statements are contained in a separate review report, as
required by state regulations.
FIXED ASSETS
NOTE 17:
The Borough’s governmental fixed assets are reported as follows:
Balance
Balance
Dec 31,
Dec 31,
Additions
Deletions
2021
2020
Description
Land
Building and Building
Improvements
Machinery and
Equipment
$ 5,864,700
$ 5,864,700
6,533,000
6,533,000
$1.558.329
$1,133.593
10.114.287
10.539.023
S 22.511.987
S 1.558.329
S22.936.723
Total
NOTE 18:
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 2021 were
$1,040,100.00 and taxes in 2021 that otherwise would have been due on these
long-term tax exemptions amount to $4,120,802.63, based upon the assessed
valuations of the long-term tax exemption properties.
42


NOTE 19:
SUBSEQUENT EVENTS
The Borough has evaluated subsequent events occurring after the financial
statement date through August 25, 2022 which is the date the financial
statements were available to be issued. Based upon this evaluation, the Borough
has determined that the following subsequent event needed to be disclosed:
The Borough adopted Ordinance 2062-22 for Various Capital Improvements in
the amount of $2,279,900.00. There were Bonds and Notes authorized in the
amount of $1,636,870.00.
43


BOROUGH OF MIDDLESEX
SUPPLEMENTARY SCHEDULES- ALL FUNDS
YEAR ENDED DECEMBER 31. 2021


"A-4"
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF CASH - TREASURER
CURRENT FUND
GRANT FUND
REF.
$
$
5,306,241.41
Balance, December 31, 2020
Increased by Receipts:
Miscellaneous Revenue Not Anticipated
Taxes Receivable
Sewer Rents Receivable
Revenue Accounts Receivable
State of New Jersey-Senior Citizens and Veterans
Prepaid Taxes
Tax Overpayments
Various Accounts Payable and Reserves
Grants Receivable
Grants Unappropriated
Interfunds Returned
A
$
385,705.21
46,988,258.44
957.366.54
4,118,115.73
84,871.23
216,614.57
35,185.11
246.761.55
$
A-2
A-6
A-8
A-9
A-12
A-15
A-16
A-18
153,967.18
594,710.39
123,164.69
A-19
A-21
A-10A-22
75,923.31
53,108,801.69
$ 58,415,043.10
871,842.26
$
871,842.26
Decreased by Disbursements:
Refund of Prior Year Revenue
Appropriations
Appropriation Reserves
County Taxes
Local District School Tax
Various Accounts Payable and Reserves
Grants Appropriated
Interfunds Returned
$
A-1
$
12,508.82
18,433,513.43
528,805.61
6,795,477.67
26,558,604.00
256,404.55
A-3
A-11
A-13
A-14
A-18
A-20
131,556.80
195,734.58
A-10A-22
2,040.06
327,291.38
52,587,354.14
$
5,827,688.96
$
544,550.88
Balance, December 31, 2021
A


"A-5"
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF CHANGE FUNDS
BALANCE
DECEMBER 31,
2021 AND 2020
$
200.00
150.00
50.00
50.00
50.00
Collector - Treasurer
Municipal Court
Construction
Borough Clerk
Swim Pool Utility
$
500.00
A
REF.


"A-6"
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY
TRANSFERRED
TO TAX
TITLE LIENS
BALANCE
DECEMBER
31.2021
BALANCE
DECEMBER
31. 2020
OVERPAYMENTS
APPLIED
COLLECTIONS
CANCELED
2021
ADDED TAXES
2020
2021 LEVY
YEAR
$
$
2,883.42
$
544,465.52
$
966.72
14,186.69
$
$
$
$
$
3,850.14
549,441.81
2019
250.00
9,460.40
2020
42,446.50
521,741.88
46,533,498.54
10,323.36
17,462.38
6,654.23
334,690.95
47,453,509.38
2021
521,991.88
334.690,95
$
47.080.847.48
$
10.323.36
$
57.599.91
$
17.462.38
$
16.114.63
$
553.291.95
$
47.453.509.38
$
$
A-2
A-7
A-2:A-16
A
A-2:A-15
A
REF.
REF.
$
46,988,258.44
92,589.04
A-4
Collector (Including Homestead Credit)
Due From State of New Jersey Per Chapter 20, P.L. 1971
A-12
$
47.080.847.48
ANALYSIS OF 2021 PROPERTY TAX LEVY
TAX YIELD
General Purpose Tax
Added Taxes (54:4-63.1 et. seq.)
$
47,373,909.72
79,599.66
$
47.453.509.38
TAX LEVY
Local District School Tax (Abstract)
County Taxes:
County Tax
County Open Space Preservation Tax
County Added
5
26,684,052.00
A-2:A-14
$
6,268,807.95
515,338.34
11,331.38
A-13
A-13
A-13
6,795,477.67
$
13,334,453.56
570.459.02
69,067.13
A-2
Local Tax for Municipal Purposes (Abstract)
Municipal Library Taxes
Add: Additional Tax Levied
Local Tax for Municipal Purposes Levied
A-2
13,973,979.71
$
47.453.509.38


"A-7"
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF TAX TITLE LIENS
REF.
$
415,884.70
A
Balance, December 31, 2020
Increased by:
Transferred From Taxes
10,323.36
A-6
426,208.06
Decreased by:
Canceled/Adjusted
338,488.00
Reserved
$
87,720.06
Balance, December 31, 2021
A


"A-8"
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF SEWER FLOW CHARGES RECEIVABLE
REF.
$
23,133.38
A
Balance, December 31, 2020
increased by:
Sewer Flow Charges: User Charges
967,428.57
Reserve
990,561.95
Decreased by:
Receipts
957,366.54
A-2.A-4
$
33,195.41
A
Balance, December 31, 2021


"A-9"
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE
BALANCE
DECEMBER
31.2021
BALANCE
DECEMBER
31.2020
ACCRUED
IN 2021
COLLECTED BY
TREASURER
REF
Clerk:
Alcoholic Beverage Licenses
Other Licenses
Fees and Permits:
Construction Code Official
Other
Municipal Court - Fines and Costs
Interest and Costs on Taxes
Interest on Investments and Deposits
Cable Franchise Fees
Payment in Lieu of Taxes - Presbyterian Homes
Payment in Lieu of Taxes * 150 Lofts, LLC
Host Community Benefit Funds
Consolidated Municipal Property Tax Relief Aid
Energy Receipts Tax
Payment in Lieu of Taxes - Midmarket Urban Renewal
A-2
General Capital Fund Balance
$
13,861.80
35,182.00
$
13,861.80
$
35,182.00
$
A-2
A-2
368,618.00
7,772.22
89,643.84
134,739.85
55,388.62
89,450.17
56,100.21
879,993.25
67,827.03
14,397.00
1,765,417.00
325,087.47
216,688.91
368,618.00
7,772.22
87.592.20
134,739.85
55,388.62
89,450.17
56.100.21
879,993.25
67,827.03
14,397.00
1,765,417.00
325,087.47
216,688.91
A-2
A-2
7,057.66
5,006.02
A-2
A-2
A-2
A-2
A-2
A-2
A-2
A-2
A-2
A-2
5.006.02
$
4.120.167.37
$
4,118,115.73
$
7,057.66
$
A
REF.
Reserve
A-4
A


BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF INTERFUNDS
SWIMMING
POOL
OPERATING
FUND
GENERAL
CAPITAL
FUND
ASSESSMENT
TRUST FUND
FUND
ANIMAL
CONTROL
TRUST FUND
PAYROLL
TRUST FUND
GRANT
FUND
TRUST FUND
TRUST OTHER
TOTAL
REF.
Balance, December 31, 2020:
Interfunds Receivable
Interfunds Payable
$
98,634.92
$
114,526.13
$
629.22
$
12,888.48
$
$
71,102.87
$
$
297,781.62
97,248.68
A
97,248.68
A
5,641.74
5,641.74
155,029.70
1,448.86
157,024.20
75,923.31
2,040.06
17,930.02
Statutory Animal Control Excess
Grant Revenues
Interest on investments
Grant Appropriations
Receipts
Disbursements
Various Accounts Payables and Reserves
A-18
A-1
A-2
155,029.70
1,375.96
72.90
A-2
157,024.20
74,564.39
1,994.50
A-3
53.07
45.56
1,305.85
A-4
A-4
17,930.02
Balance, December 31, 2021:
interfunds Receivable
interfunds Payable
70.11
$
98,634.92
$
114,518.62
702.12
$
18,530.22
$
$
$
$
232,455.99
$
82,780.18
A
79,318.66
3,461.52
A


"A-11"
Sheet #1
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF 2Q20 APPROPRIATION RESERVES
BALANCE
DECEMBER
312020
BALANCE
LAPSED
ADJUSTED
BALANCE
PAID OR
CHARGED
ENCUMBRANCES
Salaries and Wages:
General Administration
Mayor and Council
Clerk
Financial Administration
Assessment of Taxes
Collection of Taxes
Code Enforcement
Joint Land Use Board
Police
Juvenile Conference Committee
Municipal Court
Road Repairs and Maintenance
Shade Tree Commission
Solid Waste Collection
Garbage and Trash Removal
Buildings and Grounds
Senior Nutrition - Program Costs
Title III Senior Medical Transportation- Program Costs
Title III Information & Assistance - Program Costs
Recreation Services and Program
Parks and Playgrounds
Senior Citizens Coordinator
Accumulated Sick Leave Compensation
Construction Department
Sewer Processing and Disposal
$
2,500.12
$
3,466.82
4,184.45
2,119.70
90.00
47.03
6,771.02
3,750.00
87,042.40
$
$
2.500.12
$
3,466.82
4,184.45
2,119.70
90.00
47.03
6,771.02
3,750.00
87,042.40
2,500.12
3,466.82
4,184.45
2,119.70
90.00
47.03
6,771.02
3,250.00
79,032.71
500.00
8,009.69
0.08
0.08
0.08
11,291.73
36,417.33
130.12
18,603.06
20,655.64
252.64
537.00
2,450.00
133.10
8,599.63
5,376.41
422.03
322.17
136.65
5,847.93
11,291.73
25.751.44
130.12
17,060.67
15,977.87
252.64
537.00
2,450.00
133.10
8,599.63
1,443.09
422.03
322.17
136.65
3,969.21
11,291.73
36,417.33
130.12
18,603.06
20,655.64
252.64
537.00
2,450.00
133.10
8,599.63
5,376.41
422.03
322.17
136.65
5.847.93
10,665.89
1,542.39
4,677.77
3,933.32
1,878.72
Other Expenses:
General Administration
Mayor and Council
Clerk
Postage for All Departments
Printing and Advertising
Financial Administration
Elections
Annual Audit
Assessment of Taxes
Collection of Taxes
Legal Services and Costs
Engineering Services and Costs
Board of Health
Computer Data Services
Environmental Legal and Engineering Services and Costs
Code Enforcement
Purchasing Agent
Joint Land Use Board
Temporary Disability Insurance
Long-Term Disability Insurance
Liability Insurance
Workmen's Compensation
Employee Group Insurance
Flood Plan Management
Police
Juvenile Conference Committee
Office of Emergency Management
Public Defender
Fire Department
Fire Hydrant Fees
Municipal Prosecutor's Office
Municipal Court
Road Repairs and Maintenance
Shade Tree Commission
Garbage and Trash Removal
Community Services Act (Condominium Costs)
Buildings and Grounds
Animal Control
24.95
54.39
2,600.00
566.73
803.88
3,298.99
3,453.03
1.638.37
28.93
3.831.25
2,142.59
643.56
9,400.00
2,100.00
1,206.80
994.46
7.263.25
13,900.55
35,506.72
18,609.44
1,770.50
15,090.76
1,397.06
16,516.68
3,559.65
1.542.26
6,594.90
11,526.80
252,237.59
10,490.76
9,095.77
250.00
1,575.94
8,890.00
338.07
2,734.86
1,433.34
4.483.38
36,034.98
851.00
9,996.29
247.93
10,717.38
1,700.00
3,453.03
1,673.37
2,028.93
4,213.05
2,596.57
2,127.36
9,400.00
30,000.00
1,206.80
969.46
8,725.75
27.276.80
35,456.72
27,333.60
7,956.50
15,090.76
1,397.06
16,639.18
3,559.65
1,542.26
6,594.90
11.526.80
293,597.59
10,125.76
3,517.15
250.00
467.32
11,890.00
303.93
19,522.86
1,433.34
4,621.24
40,815.93
24.95
19.39
600.00
184.93
349.90
1,815.19
3.477.98
1,692.76
2,628.93
4.397.98
2,946.47
3.942.55
9,400.00
30,000.00
1,206.80
1,171.53
20.725.75
27.276.80
35,506.72
34,531.28
7,956.50
15,090.76
1,397.06
17,776.68
3,559.65
1,542.26
6,594.90
11.526.80
252,837.59
10.925.76
105,710.49
250.00
3.822.56
12,280.00
7,572.46
19,522.86
2,933.34
4,751.58
50,946.00
17,001.00
11,716.48
247.93
23,134.27
1,700.00
27,900.00
177.07
13,462.50
13,376.25
202.07
50.00
7,197.68
15,921.84
6,186.00
1,137.50
1,260.00
240.00
800.00
102,193.34
600.00
435.00
96,614.72
3,355.24
390.00
7,268.53
2.246.62
3,390.00
7,234.39
16,788.00
1,500.00
268.20
14,911.02
16,150.00
1,720.19
1,500.00
130.34
10,130.07
17,000.00
407.57
1.00
11.308.91
247.93
12,303.53
1,700.00
12,416.89
10,830.74


"A-11"
Sheet #2
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF 2020 APPROPRIATION RESERVES
BALANCE
DECEMBER
31, 2020
BALANCE
LAPSED
ADJUSTED
BALANCE
PAID OR
CHARGED
ENCUMBRANCES
4,105.03
14.335.42
7,214.15
6,575.41
100.00
2,187.84
17,717.75
24,053.12
10,897.06
6,054.78
7,735.54
3,746.74
37.452.42
14,788.34
6,475.36
345.59
$
6,926.57
370.82
$
9,882.80
4,450.62
$
21,261.99
7.214.15
7,023.98
100.00
2.219.15
17,717.75
33,789.57
25,024.10
10,817.84
10,404.65
9,890.55
37,452.42
14,788.34
6,675.36
51,902.67
3,516.05
21,880.00
20,886.29
10,807.31
1,878.41
4,079.80
$
11,379.19
7,214.15
6.575.41
100.00
2,199.63
17.717.75
33,789.57
25,024.10
9,020.87
10,404.65
9,890.55
37,452.42
14,788.34
959.36
23,114.40
3,516.05
19,077.50
20,886.29
10,807.31
1.878.41
Recreation Services and Program
Parks and Playgrounds
Senior Citizens Bus Transportation
Senior Citizens Coordinator
Housing and Community Advisory Board
Construction Department
Multi-Family Solid Waste Collection
Electricity
Street Lighting
Telephone
Water
Gas (Natural or Propane)
Fuel Oil (Diesel Fuel)
Gasoline
Sewer Processing and Disposal
Sanitary Landfill Fees
Celebration of Public Events
Contingent
Social Security System
Public Employees' Retirement System of NJ
Defined Contribution Retirement Plan
Middlesex County Utilities Authority Sewerage
Treatment Contractual
Piscataway Sewerage Authority - Share of Costs
Middlesex County Improvement Authority -
Curbside Recycling Collection
LOSAP
Stormwater Pollution Programs:
NJPDES/Stormwater Permit
$
448.57
448.57
31.31
19.52
9,736.45
14,127.04
4,763.06
2,669.11
6,143.81
1,796.97
200.00
51,902.67
5,716.00
12,788.27
3,516.05
17,749.36
20,886.29
9,382.54
1,878.41
4,130.64
2,802.50
1,424.77
733.96
41,486.79
36,286.57
41,486.79
35,552.61
23,286.57
41,486.79
12,952.07
59,800.00
57,040.07
115,000.00
44,088.00
55,200.00
22,044.00
34,996.07
115,000.00
2,378.32
2,378.32
2,378.32
528,805.61
$
1,033,936.88
221,696.89
$
1,562,742.49
$
$
1,341,045.60
$
TOTAL
A-4
A-1
JREL
A
A-17


"A-te"
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF DUE STATE OF NEW JERSEY
FOR SENIOR CITIZEN AND VETERAN DEDUCTIONS
REF.
$
46,333.08
A
Balance, December 31, 2020
Increased by:
Deductions Per Tax Billings
Deductions Allowed
$
89,250.00
3,500.00
A-12
A-12
92,750.00
$
139,083.08
Decreased by:
Receipts
Deductions Disallowed
84,871.23
160.96
A-4
A-12
85,032.19
$
54,050.89
A
Balance, December 31, 2021
REVENUE REALIZED:
Deductions Per Tax Billings
Deductions Allowed by Collector
Less: Deductions Disallowed by Collector
$
89,250.00
3,500.00
160.96
A-12
A-12
A-12
$
92,589.04
A-6


"A-13”
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF COUNTY TAXES PAYABLE
REF.
2021 Tax Levy:
County Tax
County Open Space Preservation Tax
County Added
$
6,268,807.95
515,338.34
11,331.38
A-6
A-6
A-6
$
6,795,477.67
A-1
Decreased by:
Payments
$
6,795,477.67
A-4
MA-14”
SCHEDULE OF LOCAL DISTRICT SCHOOL TAXES PAYABLE
REF.
Balance, December 31, 2020
School Taxes Payable
Deferred School Taxes
$
722,740.00
12,568,492.00
A
13,291,232.00
$
Increased by:
2021 Tax Levy - Calendar Year
26,684,052.00
A-1:A-6
39,975,284.00
Decreased by:
Payments
26,558,604.00
A-4
Balance, December 31, 2021
School Taxes Payable
Deferred School Taxes
848,188.00
12,568,492.00
A
$
13,416,680.00


"A-1511
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF PREPAID TAXES
$
334,690.95
Balance, December 31, 2020
A
Increased by:
Collections of 2021 Taxes
216,614.57
A-4
$
551,305.52
Decreased by:
Applied to Taxes Receivable
334,690.95
A-6
$
216,614.57
A
Balance, December 31, 2021


"A-16"
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF TAX OVERPAYMENTS
$
Balance, December 31, 2020
136,028.82
A
Increased by:
Collections of 2021 Taxes
35,185.11
A-4
$
171,213.93
Decreased by:
Applied to Taxes Receivable
17,462.38
A-6
$
Balance, December 31, 2021
153,751.55
A


"A-17"
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF ENCUMBRANCES PAYABLE
REF.
$
221,696.89
Balance, December 31, 2020
A
Increased by:
2021 Appropriations
188,886.03
A-3
$
410,582.92
Decreased by:
Transfer to 2020 Appropriation Reserves
221,696.89
A-11
$
188.886.03
Balance, December 31, 2021
A


nA-18"
BOROUGH OF MIDDLESEX
CURRENT FUND
SCHEDULE OF CHANGES IN VARIOUS ACCOUNTS PAYABLES AND RESERVES
BALANCE
DECEMBER
31.2021
BALANCE
DECEMBER
31.2020
CASH
DISBURSEMENTS
CASH
RECEIPTS
Accounts Payable:
Vendor Accounts Payale
$
696.00 $
99,557.47
$
100,253.47 $
99,557.47
696.00
100,253.47
Subtotal
Reserve for:
Codification of Ordinances
FEMA/NJDEP Buyout
Master Plan
Tax Appeals
Sewer Overpayments
Farmers Market
RAB Payments
Other Liens
Staff Appreciation
Marriage License Filing Fees
State Training Fees
PILOT Fess due to Middlesex County
Sale of Assets - Cell Tower
6,389.15
171.76
1,16196
24,496.20
172.49
215.00
500.00
35.00
17,930.02
550.00
6,389.15
171.76
1,161.96
24,496.20
172.49
215.00
500.00
35.00
3,000.00
201,595.55
18,300.02
1,475.00
27,441.00
13,250.00
3,000.00
201,595.55
370.00
2,150.00
48,963.00
1,225.00
21,522.00
13,250.00
14,644.96
14,644.96
79,516.54
256,078.55
70,533.52
265,061.57
Subtotal
265,061.57 $
256,774.55 $
179,074.01
$
170,786.99 $
Total
A
REF.
A
A-4
$
246,761.55
18,300.02
Cash Receipts
Due Current Fund
A-10
$
265,061.57
$
256,404.55
370.00
A-4
Cash Disbursements
Due Current Fund
A-10
$
256,774.55


"A-19"
BOROUGH OF MIDDLESEX
GRANT FUND
SCHEDULE OF GRANTS RECEIVABLE
BALANCE
DECEMBER
31. 2021
BALANCE
DECEMBER
31.2020
ACCRUED
RECEIPTS
2021
Middlesex County- Info Assist and Transp
Assist - Older American Act of 1965
Middlesex County - Info Assist and Transp
Assist - Older American Act of 1965
Middlesex County Open Space
Municipal Alliance on Alcoholism and Drug Abuse - 2018
Municipal Alliance on Alcoholism and Drug Abuse - 2019
Municipal Alliance on Alcoholism and Drug Abuse- 2020
NJ Div of Highway Traffic Safety - 2018 Udrive, Utext, Upay
Community Development Block Grant
CDBG - County HUD Funds (2012/2013-2016/2017)
CDBG - County HUD Funds (2017/2018)
CDBG - County HUD Funds - Adjustments
CDBG - County HUD Funds (2018/2019)
CDBG - County HUD Funds (2019/2020)
CDBG - County HUD Funds (2020/2021)
Recycling Tonnage Grant
Body Armor Replacement Fund - Federal
Body Armor Replacement Fund- State of New Jersey
Clean Communities
Drive Sober or Get Pulled Over Year End Holiday Crackdown
CDBG - County HUD Funds
Drunk Driving Enforcement Fund
Municipal Alliance on Alcoholism & Drug Abuse
Older Americans Act - Information Assistance
Older Americans Act - Transportation Assisstance
Recycling Tonnage Grant
$
252.00
$
252.00
$
$
5,155.00
667,631.79
5,280.25
6,108.66
4,080.80
6,600.00
5,155.00
667,631.79
5,280.25
6,108.66
4,080.80
6,600.00
8,450.15
14,060.98
8,450.15
15,346.00
15,346.00
1,249.98
63,486.00
63,854.00
26,050.98
1,285.02
15,346.00
1,249.98
36,683.06
20,575.00
26,802.94
43,279.00
26,050.98
4,447.58
4,447.58
2,280.10
28,014.86
6,000.00
63,854.00
6,268.76
7,978.00
6,500.00
10,000.00
19,686.40
2,280.10
28,014.86
6,000.00
63,854.00
6,268.76
6,078.00
6,500.00
10,000.00
19,686.40
1,900.00
889,954.13
155,029.70
$
153,967.18
$
888,891.61
$
$
A
A-4
A-2,A-22
A
REF.


"A-20"
SHEET #1
BOROUGH OF MIDDLESEX
GRANT FUND
SCHEDULE OF RESERVE FOR GRANTS - APPROPRIATED
RESERVE FOR
ENCUMBRANCE
DECEMBER 31. 2020
TRANSFERRED
FROM 2021
BUDGET
BALANCE
DECEMBER
31.2021
BALANCE
DECEMBER
31.2020
PAID OR
CHARGED
Year 2005
NJ Hepatitis "B" Grant
$
$
$
$
2,549.00
2,549.00
Year 2006
Livable Communities Grant
County of Middlesex - Victor Crowell Park
24.43
198,625.66
24.43
198,625.66
Year 2008
County of Middlesex - Mountain View Park
3,745.75
3,745.75
Year 2011
1,121.54
NJ Alcohol Education & Rehab
1,121.54
Year 2012
136.44
139.00
119,386.51
161.80
167.44
136.44
139.00
119,386.51
161.80
167.44
Haz-Mat Grant
CDBG - Manhole Retrofit
County of Middlesex- Mountain View Park
NJ Alcohol Education & Rehab
Older Americans Act - Information Assist
Year 2013
800.00
365.15
53.96
800.00
365.15
53.96
CDBG - Lincoln Fire House Doors
CDBG - Passive Improvements
NJ Alcohol Education & Rehab
Year 2014
NJ Alcohol Education & Rehab
Forestry Grant Match
NJ Clean Communities Grant
52.77
875.00
52.77
875.00
31.45
31.45


"A-20"
SHEET #2
BOROUGH OF MIDDLESEX
GRANT FUND
SCHEDULE OF RESERVE FOR GRANTS - APPROPRIATED
BALANCE
DECEMBER
31. 2021
TRANSFERRED
FROM 2021
BUDGET
RESERVE FOR
ENCUMBRANCE
DECEMBER 31.2020
BALANCE
DECEMBER
31.2020
PAID OR
CHARGED
Year 2015
Municipal Alliance on Alcoholism and Drug Abuse
575.26
575.26
Year 2016
NJ Alcohol Education & Rehab
Municipal Alliance on Alcoholism and Drug Abuse
CDBG - Senior Center Improvements
DWI- Municipal Court
Middlesex County Open Space
362.59
20,965.00
7,146.00
58.93
191,553.20
362.59
20,965.00
7,146.00
58.93
130,506.59
61,046.61
Year 2017
Body Armor Replacement Fund
Drunk Driving Enforcement Fund
Clean Communities Grant
Municipal Alliance on Alcoholism and Drug Abuse
NJ Alcohol Education & Rehab
Older Americans Act- Information Assist
1,601.40
18.17
217.60
1,601.40
10.08
28.25
217.60
27,973.68
64.34
20,950.00
27,973.68
64.34
18,301.50
2,648.50
Year 2018
2,180.40
255.56
1,140.56
3,320.96
255.56
12,237.94
4,441.14
2,196.67
552.85
Body Armor Replacement Fundd
Clean Communities Grant
CDBG
Drunk Driving Enforcement Fund
NJ Alcohol Education & Rehab
Older Americans Act - Information Assist
12,237.94
3,162.76
2,196.67
552.85
1,418.58
140.20
Year 2019
Body Armor Replacement Fundd
CDBG
Senior Van Driver
Senior Center Improvements
Clean Communities Grant
Clean Communities Grant - CH 159
Drunk Driving Enforcement Fund
Municipal Alliance on Alcoholism and Drug Abuse
NJ Alcohol Education & Rehab
Recycling Tonnage Grant
108.76
108.76
5,907.00
3,507.00
23,307.90
15,800.75
(4,570.03)
5,907.00
29,911.00
23,307.90
29,194.76
1,744.50
1,637.80
562.62
336.20
26,404.00
13,394.01
6,314.53
1,637.80
562.62
336.20


"A-20
H
SHEET #3
BOROUGH OF MIDDLESEX
GRANT FUND
SCHEDULE OF RESERVE FOR GRANTS - APPROPRIATED
BALANCE
DECEMBER
31. 2021
RESERVE FOR
ENCUMBRANCE
DECEMBER 31.2020
TRANSFERRED
FROM 2021
BUDGET
BALANCE
DECEMBER
31.2020
PAID OR
CHARGED
Year 2020
Recycling Tonnage Grant
Community Development Block Grant
Municipal Alliance on Alcoholism and Drug Abuse
Municipal Alliance on Alcoholism and Drug Abuse - Match
NJ Alcohol Education & Rehab
Body Armor Grant
Clean Communities Grant
16,661.48
33,575.00
6,078.00
784.34
1,249.00
30,279.00
2,385.57
15,524.91
63,854.00
6,078.00
4,873.50
3,834.28
3,101.97
26,323.50
4,089.16
3,834.28
3,101.97
26,323.50
Year 2021
Recycling Tonnage Grant
Clean Communities Program
CDBG
Drive Sober or Get Pulled Over Year End Holiday Crackdown
Municipal Alliance on Alcohol & Drug Abuse
Municipal Alliance on Alcohol & Drug Abuse- Match
Body Armor Grant - Federal
Body Armor Grant - State
Drunk Driving Enforcement Fund
Older Americans Act
7,004.26
12,682.14
28,014.86
63,854.00
5,280.00
1,029.95
1,728.55
4,447.58
2,280.10
6,268.76
2,368.00
19,686.40
28,014.86
63,854.00
6,000.00
7,978.00
1,994.50
4,447.58
2,280.10
6,268.76
16,500.00
720.00
6,948.05
265.95
14,132.00
63,600.63
$
157,024.20
$
138,829.56
$
859,758.38
$
777,963.11
A-3.A-22
A
A
RER
A
$
131,556.80
7,272.76
Disbursements (Net of Refunds)
Encumbrances Payable
A-4
A
$
138,829.56


"A-21"
BOROUGH OF MIDDLESEX
GRANT FUND
SCHEDULE OF RESERVE FOR GRANTS - UNAPPROPRIATED
BALANCE
DECEMBER 31
BALANCE
DECEMBER 31
CASH
RECEIPTS
2021
DESCRIPTION
2020
$
594,710.39 $
$
594,710.39
American Rescue Plan Act
$
$
594,710.39 $
594,710,39
A
REF.
A
A-4


"A-22"
BOROUGH OF MIDDLESEX
GRANT FUND
SCHEDULE OF INTERFUNDS RECEIVABLE/PAYABLE - GRANT FUND
SWIMMING
POOL OPERATING
FUND
GENERAL
CAPITAL
FUND
CURRENT
FUND
TOTAL
REF.
Balance, December 31, 2020:
Interfunds Receivable
Interfunds Payable
$
23,775.00
$
S
$
23,775.00
71,102.87
A
71,102.87
A
155,029.70
157,024.20
123,164.69
195,734.58
155,029.70
157,024.20
1,994.50
74,564.39
Grant Revenues
Grant Appropriations
Receipts
Disbursements
A-19
A-20
121,170.19
121,170.19
A-4
A-4
Balance, December 31, 2021:
Interfunds Receivable
3,461.52
$
23,775.00
$
$
27,236.52
$
A


"B-2"
BOROUGH OF MIDDLESEX
TRUST FUND
SCHEDULE OF CASH-TREASURER
PUBLIC
ASSISTANCE
TRUST
PAYROLL
FUND
TRUST
OTHER
ESCROW
TRUST
ANIMAL
CONTROL
ASSESSMENT
REF.
24,938.14
$
706,861.00
$
1,018,902.21
$
167,306.02
$
9,836.41
11,889.07
$
$
Balance, December 31, 2020
B
Increased by Receipts;
Due Current Fund
Animal Control Licenses
Due State of New Jersey - Dog Licenses
Resen/e for Various Trust Deposits
Reserve for Developers Deposits
Reserve for Public Assistance
Reserve for Payroll Deductions
Interfunds
72.90
B-7
4,850.08
691.80
B-4
B-5
1,647,151.60
B-8
183,782.06
B-9
60.11
B-10
9,580,475.46
1,375.96
183,782.06
$
9,581,851.42
$
B-11
18,300.02
5,541.88
$
1,665,451.62
$
B-13.B-14
60.11
72.90
$
$
Decreased by Disbursements:
Due Current Fund
Animal Control Licenses
Due State of New Jersey - Dog Licenses
Resen/e for Various Trust Deposits
Reserve for Developers Deposits
Reserve for Public Assistance
Reserve for Payroll Deductions
Interfunds
B-7
218.00
684.00
B-4
B-5
332,332.54
B-8
590,804.84
B-9
63.45
B-10
9,635,650.50
1,305.85
B-11
370.00
B-13.B-14
9,636,956.35
63.45
332,702.54
590,804.84
902.00
29,578.02
$
2,039,610.08
$
611,879.43
$
112,201.09
$
9,833.07
11,961.97
$
B
$
Balance, December 31, 2021


"B-3"
BOROUGH OF MIDDLESEX
TRUST FUND
SCHEDULE OF ASSESSMENTS RECEIVABLE
ASSESSMENT TRUST FUND
BALANCE
PLEDGED TO
GENERAL CAPITAL
BALANCE
DECEMBER
31. 2021
BALANCE
DECEMBER
31.2020
ORDINANCE
IMPROVEMENT DESCRIPTION
1,470.00
$
1,470.00
$
1,470.00
$
Curbs and Gutters
01/10/03
1,470.00
$
1.470.00
1,470.00
$
$
REF.
B
B


"B-4"
BOROUGH OF MIDDLESEX
TRUST FUND
SCHEDULE OF RESERVE FOR ANIMAL CONTROL EXPENDITURES
ANIMAL CONTROL TRUST FUND
REF.
$
12,048.46
Balance, December 31, 2020
B
Increased by:
Dog License Fees
Cat License Fees
Cancel prior year amount Due to State of NJ
$
4,374.33
475.75
B-2
B-2
1.20
B-5
4,851.28
$
16,899.74
Decreased by:
Excess Transferred To Current Fund
Disbursements
B-12
5,641.74
218.00
B-2
5,859.74
$
11,040.00
Balance, December 31, 2021
B
LICENSE FEES COLLECTED
AMOUNT
YEAR
$
5,700.28
5,339.72
2019
2020
$
11,040.00


"B-5"
BOROUGH OF MIDDLESEX
TRUST FUND
SCHEDULE OF DUE TO STATE OF NEW JERSEY
ANIMAL CONTROL TRUST FUND
B
$
Balance, December 31, 2020
1.20
Increased by:
Receipts
B-2
691.80
$
693.00
Decreased by:
Disbursements
Cancel prior year amount Due to State of NJ
$
B-2
684.00
B-4
1.20
685.20
$
Balance, December 31, 2021
B
7.80


MB-6
W
BOROUGH OF MIDDLESEX
TRUST FUND
SCHEDULE OF DUE TO GENERAL CAPITAL FUND
ASSESSMENT TRUST FUND
REF.
Balance, December 31, 2020
$
7,164.08
B
$
Balance, December 31, 2021
B
7,164.08
"B-7”
SCHEDULE OF DUE TO CURRENT FUND
ASSESSMENT TRUST FUND
$
629.22
Balance, December 31, 2020
B
Increased by:
Cash Receipts
72.90
B-2
$
702.12
Balance, December 31, 2021
B


MB-8"
BOROUGH OF MIDDLESEX
TRUST FUND
SCHEDULE OF RESERVE FOR MISCELLANEOUS TRUST DEPOSITS
OTHER TRUST FUND
BALANCE
DECEMBER
INCREASED
DECREASED
31.2021
BALANCE
DECEMBER
31.2020
1,164.09
$
3,236.62
$
190,544.51
$
192,617.04
$
Reserve for Unemployment
Miscellaneous Reserves:
Accumulated Absence Liability
Affordable Housing
Baekeland Avenue Improvements
Commodity Resale Program
Gasoline - Borough of Dunellen
Developers Escrow Unclaimed Funds
Development
Non-Residential Development
Federal Asset Forfeitures
Municipal Law Enforcement Trust
Older Americans Act
Outside Police Services
Police Found Money
Parking Offense Adjudication Act
Police Application Fees
Public Defender Fees
Police Communities Education
Premium on Tax Sale
Police Memorial Fund
Police Donations
Police - DARE
Police 911 Fund
Recreation Fund
Recycling Trust
Restitution
Sanitary Sewer
Senior Assisted Transportation
Special inspection
Street Opening Deposits
Third Party Outside Lien Redemption
Tree Replacement Fund
UFC Dedication Penalties
Uniform Fire Safety Penalties
100th Anniversary
15,828.51
1,135,821.36
277,156.15
15,828.51
1,035,487.67
277,156.15
100,333.69
82,051.86
15,812.00
19,351.54
62,913.39
4.919.22
19,080.70
1,103.48
7,076.36
4,049.24
2,983.62
318.85
2,267.50
5,080.22
268,000.00
50.00
6.953.23
1,635.00
19.84
145,576.43
35,091.74
5,782.99
880.00
9,582.76
3,672.28
165,095.81
97,602.44
39,962.06
53.86
12,405.53
2,993.27
59,614.66
133,683.60
156,120.80
15,812.00
24,667.54
5,316.00
62,913.39
82.31
116.26
3,969.30
4,836.91
18.964.44
1,336.18
8,773.16
3,350.36
3.930.50
318.85
1.707.50
4,730.64
327,900.00
50.00
6,903.23
1,635.00
19.84
104,325.33
25,707.68
5,782.99
880.00
9,232.76
3,672.28
144,470.81
97.602.44
45,762.06
53.86
12,405.53
2,993.27
4,202.00
1,696.80
1,500.00
986.88
2,198.88
40.00
1,350.00
700.00
69,500.00
790.00
350.42
129,400.00
50.00
29,019.35
13,775.87
70,270.45
23,159.93
200.00
550.00
22,500.00
1,875.00
6,300.00
500.00
$ 1,326,896.69
$ 1,647,151.60
$
332,332.54
$ 2,641,715.75
REF.
B-2
B-2
$
190,544.51
2,451,171.24
B
$
192,617.04
B
1,134,279.65
Reserve for Unemployment
Various Trust Deposits
$ 1,326,896.69
$ 2,641,715.75


"B-9"
BOROUGH OF MIDDLESEX
TRUST FUND
SCHEDULE OF RESERVE FOR DEVELOPERS' DEPOSITS
OTHER TRUST FUND
BALANCE
DECEMBER 31
BALANCE
DECEMBER 31,
DISBURSEMENTS
2021
RECEIPTS
2020
$
$
20,062.00
591,817.43
20,062.00 $
998,840.21
$
Developers' Escrow - Water & Soil
Reserve for Various Deposits
590,804.84
183,782.06
590,804.84 $
611,879.43
1,018,902.21 $
183,782.06 $
$
B
B-2
B~2
B
REF.


MB-ICT
BOROUGH OF MIDDLESEX
TRUST FUND
SCHEDULE OF RESERVE FOR PUBLIC ASSISTANCE
PUBLIC ASSISTANCE TRUST FUND
REF.
$
9,836.41
B
Balance, December 31, 2020
Increased by:
Cash Receipts
60.11
B-2
$
9,896.52
Decreased by:
Cash Disbursements
$
63.45
B-2
$
9,833.07
Balance, December 31, 2021
B
"B-11"
SCHEDULE OF RESERVE FOR PAYROLL DEDUCTIONS
OTHER TRUST FUND
$
167,306.02
Balance, December 31, 2020
B
Increased by:
Cash Receipts
9,580,475.46
B-2
9,747,781.48
$
Decreased by:
Cash Disbursements
9,635,650.50
B-2
112,130.98
$
Balance, December 31, 2021
B


"B-12"
BOROUGH OF MIDDLESEX
TRUST FUND
SCHEDULE OF DUE TO CURRENT FUND
ANIMAL CONTROL FUND
REF.
$
Balance, December 31, 2020
12,888.48
B
Increased by:
Statutory Excess Due to Current Fund
5,64174
B-4
B
$
18,530.22
Balance, December 31, 2021


MB-13"
BOROUGH OF MIDDLESEX
TRUST FUND
SCHEDULE OF INTERFUNDS RECEIVABLE
OTHER TRUST FUND
DUE FROM
GENERAL
CAPITAL
FUND
DUE FROM
CURRENT
FUND
REF.
$ 522,787.01
$ 97,248.68
B
Balance December 31, 2020
Increased by:
Cash Disbursements
370.00
B-2
522,787.01
97,618.68
Decreased by:
Cash Receipts
18,300.02
B-2
$ 79,318.66
$ 522,787.01
Balance December 31, 2021
B


BOROUGH OF MIDDLESEX
PAYROLL TRUST FUND
SCHEDULE OF DUE TO CURRENT FUND
REF.
Increased by:
Cash Receipts
$
1,375.96
B-2
Decreased by:
Cash Disbursements
1,305.85
B-2
$
70.11
B
Balance December 31, 2021


"C-2"
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF CASH - TREASURER
REF.
1,726,093.92
$
C
Balance, December 31, 2020
Increased by Receipts:
Deferred Charges to Future Taxation - Unfunded
Bond Anticipation Notes Payable
Reserve for Payment of Debt Service - Premium on BAN
State Aid Receivable
Capital Improvement Fund
160,000.00
1,442,149.00
56,943.53
350,983.35
80,000.00
$
C-5
C-17
C-19
C-16
C-8
2,090,075.88
$
3,816,169.80
Decreased by Disbursements:
Fund Balance - Surplus Anticipated in Current Fund
Contracts Payable
Bond Anticipation Notes Payable
C-1
216,688.91
1,686,430.34
160,000.00
C-7
C-17
2,063,119.25
$
1,753,050.55
C
Balance, December 31, 2021


"C-3"
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
ANALYSIS OF CASH
BALANCE
DECEMBER
31.2021
REF.
$
Fund Balance
Capital Improvement Fund
Improvement Authorizations-Funded
Unfunded Improvements Expended - Listed on "C-5"
Contracts Payable
Reserve for Grant Receivable
Reserve for Capital Projects
Reserve for Payment of Debt Service
Unexpended Proceeds of Bond Anticipation Notes - Listed on "C-5"
Interfunds
State Aid Receivable
Excess BAN’S - Listed on ’C-5"
197,797.58
24,862.43
1,093,521.46
(1,986,396.30)
2,342,503.22
559,772.11
4,838.08
56,943.53
1,750,300.86
638,032.85
(2,947,534.42)
18,409.15
C
$
1,753,050.55
"C-4"
SCHEDULE OF DEFERRED CHARGES TO
FUTURE TAXATION - FUNDED
Balance, December 31, 2020
C
$
6,235,729.51
Decreased by:
Appropriation to Pay Bonds
Environmental Infrastructure Trust
Environmental Infrastructure Fund
Capital Leases
Green Trust
$
C-11
1,000,500.00
41,340.64
43,097.70
205,000.00
12,427.35
C-12
C-13
C-14
C-15
1,302,365.69
Balance, December 31, 2021
C
$
4,933,363.82


"c-s"
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
ANALYSIS OF BALANCE
DECEMBER 31, 2021
UNEXPENDED
IMPROVEMENT
EXPENDITURES
AUTHORIZATIONS
BALANCE
DECEMBER
31, 2021
BOND
ANTICIPATION
NOTES
BALANCE
DECEMBER
31.2020
NJEIT
NOTE
BUDGET
AUTHORIZATIONS
APPROPRIATION
2021
ORDINANCE
NUMBER
IMPROVEMENT DESCRIPTION
88,415.99
25,576.73
$
$
$
78,131.56
$
4,823.27
$
166,547.55
30,400.00
949,780.00
2.827,500.00
$
$
166,547.55
30,400.00
989,780.00
2,327,500.00
$
Acquisition and Demolition of Certain Flood Prone Properties
Improvements to Marlborough Ave - (NJDOT - $300,000)
Various Capital Improvements
Sanitary Sewer Improvements
Amend Ordinance 1907-17
South Ave Improvements
2017 Capita) Improvements
Warrenville Road Improvements
George Ave Improvements
Various Capital Improvements
Various Capital Improvements
Bound Brook
Sewer Study and Improvements
Tax Maps, Various Capital Improvements
Various Acquisitions and Improvements
Various Capital Improvements
1808-12
1857-14
1893-16
1907-17/
2040-21
1909-17
1920-17
1922-17
1924-17
1947-18
1961-19
1962-19
1975-19
1979-19
2002-20
2039-21
949,780.00
40,000.00
176,606.40
898,891.00
1,752,002.60
500,000.00
100,000.00
100,000.00
1,661,125.00
370,500.00
462,870.00
1,740,159.24
62,800.00
104,440.00
47,500.00
1,179,775.35
1,439,589.50
1,567,700.00
100,000.00
1,745,625.00
380,000.00
488,870.00
1,740,159.24
62,800.00
104,440.00
47,500.00
1,179,775.35
1,439,589.50
84,500.00
9,500.00
26,000.00
1,661,125.00
166,225.00
462,870.00
1,740,159.00
62,800.00
104,440.00
47,500.00
1,179,775.35
1,439,589.50
152,836.13
51,438.87
0.24
1,567,700.00
1,567,700.00
160,000.00
$
12.710,686.64
$
7,814,263.85
$
898,891.00
$
1,986,396.30
$
2,011.135.49
2,067,700.00
$
$
10,802,986.64
$
C-3
C
C
C-2
REF.
C-10
$
7,832,673.00
18,409.15
C-17
Bond Anticipation Notes Payable
Less: Cash on Hand to Pay Notes
C-3
$
7,814,263.85
$
3,761,436.35
(1,750,300.86)
C-10
Improvement Authorizations Unfunded
Less: Unexpended Proceeds of Bond Anticipation Notes
C-3
$
2,011,135.49


"C-6"
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF RESERVE FOR INSURANCE REFUND
REF.
Balance, December 31, 2021
and December 31, 2020
C
$
4,838.08
"C-7"
SCHEDULE OF CONTRACTS PAYABLE
C
$
1,270,876.06
Balance, December 31, 2020
Increased by:
Improvement Authorizations
4,028,933.56
C-10
$
5,299,809.62
Decreased by:
Improvement Authorizations
Disbursements
$
1,270,876.06
1,686,430.34
C-10
C-2
2,957,306.40
$
2,342,503.22
Balance, December 31, 2021
C


"C-8"
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
REF.
$
C
23,287.43
Balance, December 31, 2020
Increased by:
2021 Appropriations
80,000.00
C-2
$
103,287.43
Decreased by:
Appropriated to Finance Improvement Authorizations
78,425.00
C-10
$
24,862.43
C
Balance, December 31, 2021


"C-9"
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF NEW JERSEY INFRASTRUCTURE BANK LOAN
REF.
Balance, December 31, 2021
and Balance December 31, 2020
$
C
898,891.00


,,C-10
M
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
2021
BALANCE
DECEMBER 31, 2021
BALANCE
DECEMBER 31, 2020
2020
CONTRACTS
PAYABLE
CONTRACTS
PAYABLE
NEW
UNFUNDED
AUTHORIZATIONS
ORDINANCE
ORDINANCE
NUMBER
UNFUNDED
FUNDED
FUNDED
AMOUNT
IMPROVEMENT AUTHORIZATIONS
DATE
$
88,415.99
$
88.415.99
$
$
$
2.540,000.00
$
888.325.00
332,000.00
1.393,000.00
614,202.14
300,000.00
2.450.000,00
500.000.00
1,837,500.00
400,000.00
514.600.00
1.981,165.00
620.000.00
1,135,000.00
344,816.68
1.258,553.00
2,031,210.00
2,032,000.00
$
03/27/12
$
09/09/14
09/09/14
08/09/16
10/11/16
10/11/16
02/14/17
09/14/21
05/23/17
07/25/17
09/19/17
08/14/18
06/11/19
06/11/19
08/13/19
10/22/19
06/23/20
08/24/21
1808-12
Acquisition and Demolition of Certain Flood Prone Properties
1855-14
Various Capital Improvements (MCIA)
1857-14
Improvements to Marlborough Ave - (NJDOT - $300,000)
1893-16
Various Capital Improvements
1899-16
Various Capital Improvements
1900-16
Milling and Paving of Various Roads
1907-17/
Sanitary Sewer Improvements
2040-21
1920-17
2017 Capital Improvements
1922-17
Warrenville Road Improvements
1924-17
George Ave Improvements
1947-18
Various Capital Improvements
1961-19
Various Capital Improvements
1962-19
Bound Brook
1968-19
2019 Library HVAC & Tax Revaluation
1979-19
Tax Maps. Various Capital Improvements
2002-20
Various Acquisitions and Improvements
2039-21
Various Capital Improvements
23,425.00
23,425.00
25,576.73
40.708.95
25,576.73
40,149.13
7,777.34
7,217.52
82.932.49
98,968.74
82,932.49
98,968.74
176,606.40
500,000.00
1,344,267.88
507,432.88
513,441.40
Amend Ordinance 1907-17
53,099.24
34,932.92
66,057.51
152,836.13
48.729.32
210.307.92
47.891.19
152.836.13
48,729.32
234,976.78
96,462.60
945,915.26
86,171.68
593.401.42
1.439,589.50
40,615.11
566.166.51
189,677.78
219.195.00
219,063.62
958.260.51
426,111.71
15,946.25
2,023.10
135,462.78
219.195.00
92,774.60
207,731.35
3.89
467,684.70
787,260.26
86.171.68
104,440.00
467,112.40
812,941.11
1.567,700.00
123,880.77
38.188.29
2,032.000.00
$
773,466.70
$ 4,307,548.61
$
2,532,000.00
$ 1,270,876.06
$
4,028,933.56
$
1,093,521.46
$
3,761,436.35
C
C:C-5
C-7
C-7
REL
C
c
$
2,067,700.00
385,875.00
78,425.00
C-5
Bonds and Notes
Grants Receivable
Capital Improvement Fund
C-16
C-8
$
2,532.000.00


"C-1r
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF GENERAL SERIAL BONDS
MATURITIES OF BONDS
OUTSTANDING
DECEMBER 31,2021
BALANCE
DECEMBER
31.2020
BALANCE
DECEMBER
31.2021
ORIGINAL
ISSUE
INTEREST
RATE
DATE OF
ISSUE
AMOUNT
DECREASE
DATE
PURPOSE
$
301,000.00
2.000%
308,000.00
2.000%
318,500.00
2.500%
326,500.00
2.500%
$
1,544,500.00
$
290,500.00
$
1,254,000.00
07/16/15
$
2,878,000.00
07/15/22
07/15/23
07/15/24
07/15/25
General Obligation Bonds of 2015
02/15/22
02/15/23
02/15/24
02/15/25
740,000.00
4.000%
745,000.00
5.000%
755,000.00
5.000%
750,000.00
5.000%
General Obligation Refunding Bonds 2019
12/05/19
3,700,000.00
3,700,000.00
710,000,00
2,990,000.00
5,244,500.00
$
1,000,500.00
$
4,244,000.00
$
C
C
REF.
C-4


"C-^"
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF STATE OF NEW JERSEY TRUST LOAN PAYABLE - NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST LOANS
PRINCIPAL REQUIREMENTS
OF LOAN OUTSTANDING
DECEMBER 31, 2021
BALANCE
DECEMBER
31. 2021
BALANCE
DECEMBER
31. 2020
INTEREST
RATE
ORIGINAL
ISSUE
DATE OF
ISSUE
DECREASED
AMOUNT
DATE
PURPOSE
5.000%
3.000%
3.250%
850,000.00
08/01/22
$
08/01/23
08/01/24
45,607.96
55,174.08
55,041.02
$
NJ Environmental Infrastructure Trust 2004 A
08/01/05
$
197,163.70
$
41,340.64
$
155,823.06
$
197,163.70
$
41,340.64
$
155,823.06
C*4
C
REF.
C


"013"
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF STATE OF NEW JERSEY FUND LOAN PAYABLE - NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE FUND LOANS
PRINCIPAL REQUIREMENTS
OF LOAN OUTSTANDING
DECEMBER 31, 2021
BALANCE
DECEMBER
312020
BALANCE
DECEMBER
31.2021
ORIGINAL
ISSUE
DATE OF
ISSUE
DECREASED
AMOUNT
DATE
PURPOSE
$
2,794.83
41,764.22
1,820.60
33,050.46
$
844,828.00
02/01/22
08/01/22
02/01/23
08/01/23
08/01/05
NJ Environmental Infrastructure Trust 2004 A
79,429.81
43,097.70
122,527.51
$
122,527.51
$
43,097.70
$
79,429.81
C-4
C
REF.
C


"C-M"
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF CAPITAL LEASES PAYABLE
MATURITIES OF BONDS
OUTSTANDING
DECEMBER 31, 2021
BALANCE
DECEMBER
31. 2020
BALANCE
DECEMBER
31.2021
INTEREST
RATE
AMOUNT OF
LOAN
FEES
PAYABLE
AMOUNT
DECREASE
DATE
PURPOSE
$
215,000.00
4.000%
220,000.00
4.000%
$ 2,900,567.38
$
56,064.13
08/15/22
08/15/23
Capital Equipment- 2013
$
640,000.00
$
205,000.00
$
435,000.00
$
640,000,00
$
205,000.00
$
435,000.00
04
C
REF.
C


UC-15”
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF STATE OF NEW JERSEY LOAN PAYABLE - GREEN TRUST LOAN PROGRAM
BALANCE
LOANS
PAYABLE
PRINCIPAL
PAYMENTS
PAYMENT
DATE
INTEREST
PAYMENTS
PAYMENT
NUMBER
$
19,110.95
12,803.92
6,433.82
191.11 $
128.04
64.30
$
6,307.03
6,370.10
6,433.82
January 15, 2022
July 15, 2022
January 15, 2023
37
38
39
Total Balane Due
Principal and Interest
383.45 $
$
19,110.95
C
REF.
315.38 $
253.56
6,182.76
6,244.59
January 15, 2021
$
July 15, 2021
35
36
$
12,427.35
568.94 $
C-4
REF.


"C-l6”
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF STATE AID RECEIVABLE
REF.
C
$
2,912,642.77
Balance, December 31, 2020
Increased by:
New Grants Awarded
C-10
385,875.00
$
3,298,517.77
Decreased By:
Receipts
350,983.35
C-2
$
2,947,534.42
C
Balance, December 31, 2021
Analysis of Balance:
Federal Homeland Security
Middlesex County
Recyling Trust
State of NJ DCA - Livable Communities
Federal Homeland Security
State of NJ DOT - Beechwood Ave
State of NJ DOT - Greenbrook Road
State of NJ DOT - Beechwood Ave
State of NJ DOT - Parker Street
State of NJ OEM
Federal Emergency Management Agency (FEMA)
Various Capital Improvements (MCIA)
State of NJ DOT - Marlborough Avenue
State of NJ DOT - Warrenville Road
State of NJ DOT - South Avenue
Due from Township of Piscataway - South Avenue
State of NJ DOT - Runyon Avenue
State of NJ DOT - Harris Avenue, Ashland Road, Fischer Ave
State of NJ DOT - Bound Brook Road
State of NJ DOT - Sherman Ave, Chestnut Street and Hazelwood Ave
State of NJ DOT - Milling and Overlay
$
24,000.00
35,966.00
2,350.00
130.00
8,805.00
69,476.44
56,250.00
16,361.77
15,238.34
140,250.00
26.297.55
125,000.00
22.708.56
83,478.74
100,000.00
25,199.16
48,371.21
557,200.00
1,030,560.00
174,016.65
385,875.00
1643-05
1643-05
1676-05
1688-06
1688-06
1715-07
1736-08
1772-10
1797-11
1808-12
1808-12
1855-14
1857-14
1893-16
1909-17
1909-17
1947-18
1961-19
1962-19
2002-20
2039-21
$
2,947,534.42


"CM7*
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF BOND ANTICIPATION NOTES PAYABLE
BALANCE
DECEMBER
31.2021
BALANCE
DECEMBER
31.2020
ORIGINAL
DATE OF
ISSUE
INTEREST
RATE
DATE OF
MATURITY
DATE OF
ISSUE
INCREASED
DECREASED
DESCRIPTION
ORDINANCE
949,780.00
1,661,125.00
166,225.00
462,870.00
1,740,159.00
62,800.00
104,440.00
47,500.00
1,195,625.00
1,442,149.00
949,780.00
$
1,661,125.00
166,225.00
462,870.00
1,740,159.00
62,800.00
104,440.00
47,500.00
1,195,625.00
1,442,149.00
989,780.00
1,745,625.00
175,725.00
488,870.00
1,740,159.00
62,800.00
104,440.00
47,500.00
1,195,625.00
$
$
$
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
989,780.00
1,745,625.00
175,725.00
488,870.00
1,740,159.00
62,800.00
104,440.00
47,500.00
1,195,625.00
06/23/22
06/23/22
06/23/22
06/23/22
06/23/22
06/23/22
06/23/22
06/23/22
06/23/22
06/23/22
06/28/18
06/28/18
06/28/18
06/28/18
06/26/19
06/25/20
06/25/20
06/25/20
06/25/20
06/23/21
06/23/21
06/23/21
06/23/21
06/23/21
06/23/21
06/23/21
06/23/21
06/23/21
06/23/21
06/23/21
Various Capital improvements
2017 Capital Improvements
Warrenville Rd Improvements
George Ave Improvements
Various Capital Improvements
Various Capital Improvements
Bound Brook
Sewer Study and Improvements
Tax Maps, Various Capital Improvements
Various Capital Improvements
1893-16
1920-17
1922-17
1924-17
1947-18
1961-19
1962-19
1975-19
1979-19
2002-20
$
6,550,524.00
$
7,832,673.00
$
6,550,524.00
$
7,832,673.00
C:C5
C
REF.
$
6,390,524.00 $
6,390,524.00
1,442,149.00
Renewal
Issued for Cash
C-2
Bonds paid by Budget
C-2
160,000.00
$
7,832,673.00 $
6,550,524.00


"C-18"
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF RESERVE FOR GRANT RECEIVABLE
REF.
Balance, December 31, 2021
and December 31, 2020
$
C
559,772.11
Analysis of Balance
Ord
Description
Middlesex County - Cedar Avenue
State of NJ OEM
Federal Emergency Management Agency (FEMA)
State of NJ DOT - South Avenue
Townhip of Piscataway - South Avenue
State of NJ DOT - Runyon Avenue
2014 Loan Reimbursement
$
56.00
98,598.63
67,948.92
100,000.00
25,199.16
138,053.24
129,916.16
1643-05
1808-12
1808-12
1909-17
1909-17
1947-18
$
559,772.11
"C-19"
SCHEDULE OF RESERVE FOR PAYMENT OF DEBT SERVICE
REF.
Increased by:
Premium on BAN'S
$
56,943.53
C-2
C
$
56,943.53
Balance, December 31, 2021


"C-20"
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF DUE CURRENT FUND
REF.
$
7,164.08
C
Balance, December 31, 2020 (Due From)
$
7,164.08
C
Balance, December 31, 2021 (Due From)


"C-21"
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF INTERFUNDS PAYABLE
DUE TO
GRANT
FUND
DUE TO
TRUST OTHER
FUND
DUE TO
CURRENT
FUND
REF.
Balance, December 31, 2021
and December 31, 2020
$
522,787.01
$ 98,634.92
$
23,775.00
C


"C-22"
BOROUGH OF MIDDLESEX
GENERAL CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
BALANCE
DECEMBER
31. 2021
ORDINANCE
NUMBER
IMPROVEMENT DESCRIPTION
166,547.55
30,400.00
1,928,609.00
100,000.00
204,275.00
$
Acquisition and Demolition of Certain Flood Prone Properties
Improvements to Marlborough Ave
Sanitary Sewer Improvements
South Ave Improvements
Warrenville Road Improvements
Various Capital Improvements
Various Capital Improvements
1808-12
1857-14
1907-17/2040-21
1909-17
1922-17
1947-18
2039-21
0.24
1,567,700.00
$
3,997,531.79


"D-5"
BOROUGH OF MIDDLESEX
SCHEDULE OF SWIMMING POOL UTILITY CASH AND INVESTMENTS - TREASURER
SNACK BAR ACCOUNT
OPERATING FUND
REF.
$
3,008.51
$
161,999.92
Balance - December 31, 2020
D
Increased by Receipts:
Miscellaneous Revenue
Fees - Membership
American Rescue Plan
Snack Bar
Interfunds Receivable/Payable
$
113,886.78
302,246.88
121,170.19
D-3
D-3
D-3
$
26,378.00
45.56
D-5
D-10
537,303.85
26,423.56
699,303.77
29,432.07
Decreased by Disbursements:
2021 Budget Appropriations
2020 Appropriation Reserves
Snack Bar
Interfunds Receivable/Payable
D-4
392,550.43
608.32
D-9
D-5
26,378.00
53.07
D-10
26,431.07
393,158.75
$
3,001.00
$
306,145.02
Balance - December 31, 2021
D


"D-6"
BOROUGH OF MIDDLESEX
ANALYSIS OF SWIMMING POOL UTILITY CAPITAL CASH AND INVESTMENTS
BALANCE
DECEMBER 31
2021
$
7,730.10
94,320.11
2,619.00
Capital Improvement Fund
Due to Swimming Pool Operating Fund
Fund Balance
Improvement Authorizations
(156,330.00)
51,660.79
Ordinance 1771-10 Swimming Pool Improvements
Ordinance 1852-14 Swimming Pool Improvements
$
D
REF.
( ) Denotes Deficit or Deduction


"D-7"
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL
BALANCE
DECEMBER
31.2020
BALANCE
DECEMBER
31. 2021
Account
234,000.00
$
217,721.56
65,300.00
149,270.00
$
234,000.00
217,721.56
65,300.00
149,270.00
Swimming Pool and Grounds
Improvements - 1987
improvements - 1991
Improvements - 1997
666,291.56
$
666,291.56
$
D
REF.
D


"D-81’
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
BALANCE
DEC. 31. 2020
BALANCE
DEC. 31.2021
ORDINANCE
ORD.
AMOUNT
DATE
IMPROVEMENT DESCRIPTION
NO.
General Improvements:
$
350,000.00
1,300,000.00
$
350,000.00
1,300,000.00
$
350,000.00
1,300,000.00
07/27/10
06/24/14
Swimming Pool Improvemments
Swimming Pool Improvemments
1771-10
1852-14
$ 1,650,000.00
$
1,650,000.00
D
Ref.
D


"D-9"
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY OPERATING FUND
SCHEDULE OF 2020 APPROPRIATION RESERVES
BALANCE
AFTER
MODIFICATION
RESERVE FOR
ENCUMBRANCES
DEC. 31. 2020
PAID OR
CHARGED
BALANCE
LAPSED
BALANCE
DEC. 31. 2020
Operating:
Salaries and Wages
Other Expenses
29,635.53 $
85,049.63
$
29,635.53
84,441.31
29,635.53 $
83,949.19
$
$
608.32
1,100.44
Statutory Expenditures:
Contribution to:
Social Security System (O.A.S.I.)
1,139.13
1,139.13
1,139.13
1,100.44 $
115,824.29 $
608.32 $
115,215.97
114,723.85 $
$
D-1
D
D-5
Ref.
D


"D-1Q"
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY OPERATING FUND
SCHEDULE OF INTERFUNDS RECEIVABLE/PAYABLE
SWIMMING POOL
POOL UTILITY
CAPITAL FUND
CURRENT
FUND
TOTAL
Ref.
Balance, December 31, 2020
Due From
Due to
94,320.11 $
94,320.11 $
114,526.13
$
D
114,526.13
D
45.56
53.07
45.56
53.07
D-5
Cash Receipts
Cash Disbursements
D-5
Balance, December 31, 2021
Due From
Due to
94,320.11 $
94,320.11 $
114,518.62
$
D
114,518.62
D


"D-11"
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR AMORTIZATION
REF.
$
1,237,791.56
Balance - December 31, 2020
D
Increased by:
Bonds Paid by Current Budget Appropriation
Bonds Paid by Swimming Pool Budget Appropriation
$
78,528.00
45,972.00
D-17
D-17
124,500.00
$
1,362,291.56
Balance - December 31, 2021
D
"D-12"
SCHEDULE OF CAPITAL IMPROVEMENT
REF.
D
Balance - December 31, 2020
$
7,730.10
D
$
7,730.10
Balance - December 31, 2021


nD-13u
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY CAPITAL FUND
SCHEDULE OF DEFERRED RESERVE FOR AMORTIZATION
BALANCE
DEC. 31.2021
BALANCE
DEC. 31.2020
ORDINANCE
ORD.
DATE
AMOUNT
IMPROVEMENT DESCRIPTION
NO.
General Improvements:
$
100,000.00
65,000.00
$
100,000.00
65,000.00
$
350,000.00
1,300,000.00
07/27/10
06/24/14
1771-10
1852-14
Swimming Poo! Improvemments
Swimming Pool Improvemments
$
165,000.00
$
165,000.00
D
Ref.
D


"D-14"
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY CAPITAL FUND
SCHEDULE OF INTERFUNDS RECEIVABLE/PAYABLE
SWIMMING POOL
UTILITY OPERATING
FUND
TOTAL
Balance, December 31, 2020
Due to
94,320.11
$
94,320.11
$
Balance, December 31, 2021
Due to
94,320.11
$
94,320.11
$
D
D
Ref.


"D-15"
BOROUGH OF MIDDLESEX
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
SWIMMING POOL UTILITY CAPITAL FUND
BALANCE
DEC. 31, 2021
BALANCE
DEC. 31, 2020
ORDINANCE
ORD.
FUNDED
UNFUNDED
FUNDED
UNFUNDED
AMOUNT
IMPROVEMENT DESCRIPTION
DATE
NO.
General Improvements:
$
$
93,670.00 $
93,670.00
07/27/10
$
350,000.00 $
06/24/14
1,300,000.00
51,660.79
Swim Pool improvements
Swim Pool Improvements
1771-10
1852-14
51,660.79
51,660.79 $
$
51,660.79 $
93,670.00 $
93,670.00
D
D
Ref.
D
D


"D-16"
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY OPERATING FUND
SCHEDULE OF ACCRUED INTEREST ON BONDS AND NOTES
REF.
$
6,706.56
Balance - December 31, 2020
D
Decreased by:
Accrued Interest Canceled
1,128.64
D-1
$
5,577.92
D
Balance - December 31, 2021
Analysis of Balance - December 31. 2021:
Principal
Outstanding
12/31/21
Interest
Rate
Period
To
Amount
From
Bonds
539,000.00
2.000%
07/15/21
12/31/21
51/2 months $
5,577.92
$


"D-17"
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY CAPITAL FUND
SCHEDULE OF GENERAL SERIAL BONDS
BALANCE
DEC. 31,
BALANCE
DEC. 31,
INTEREST
RATE
MATURITIES OF BONDS
DATE OF
AMOUNT OF
ISSUE
2021
DECREASED
2020
DATE
AMOUNT
ISSUE
DESCRIPTION
$
$
$
129,000.00 $
132,000.00
136,500.00
141,500.00
2.000%
2.000%
2.500%
2.500%
07/15/22
07/15/23
07/15/24
07/15/25
07/16/15
$
1,235,000.00
General Improvement Bonds of 2015
539,000.00
663,500.00
124,500.00
$
663,500.00 $
124,500.00 $
539,000.00
D-11
D
D
Ref.
$
78,528.00
45,972.00
Bonds Paid by Swim Pool Budget Appropriations
Bonds Paid by Current Budget Appropriations
D-11
D-11
$
124,500.00


“D-IS"
BOROUGH OF MIDDLESEX
SWIMMING POOL UTILITY CAPITAL FUND
SCHEDULE OF BONDS AND NOTES
AUTHORIZED BUT NOT ISSUED
BALANCE
DEC. 31. 2021
BALANCE
DEC. 31. 2020
ORD.
NO.
IMPROVEMENT DESCRIPTION
$
250,000.00
$
250,000.00
2360
Swim Pool Improvements
$
250,000.00
$
250,000.00


PART II
BOROUGH OF MIDDLESEX
STATISTICAL DATA
LIST OF OFFICIALS
COMMENTS AND RECOMMENDATIONS
YEAR ENDED DECEMBER 31. 2021


COMPARATIVE STATEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE - CURRENT FUND
YEAR 2021
YEAR 2020
AMOUNT
%
AMOUNT
%
REVENUE AND OTHER INCOME REALIZED
$
1,400,000.00
2.51%
$
1,100,000.00
Fund Balance Utilized
Miscellaneous - From Other Than
Local Propery Tax Levies
Collection of Delinquent Taxes
and Tax Title Liens
Collection of Current Tax Levy
2.02%
6,955,026.28
12.47%
7,010,046.76
12.86%
0.98%
84.04%
547,348.94
46,885,651.87
600,695.74
45,808,928.24
1.10%
84.02%
Total Revenue
$
55,788,027.09
100.00%
$
54,519,670.74
100.00%
EXPENDITURES
Budget and Emergency Authorizations:
Municipal Purposes
County Taxes
Local District School Tax
Other Expenditures
37.68%
$
19,888,540.88
12.64%
49.65%
0.02%
$
20,251,084.23
6,795,477.67
26,684,052.00
12,508.82
37.82%
11.46%
50.27%
0.45%
6,026,740.39
26,438,319.00
235,149.38
$
53,743,122.72
100.00%
$
52,588,749.65
100.00%
Total Expenditures
$
2,044,904.37
$
1,930,921.09
Excess in Revenue
Fund Balance, January 1
2,328,836.56
$
4,373,740.93
1,497,915.47
$
3,428,836.56
Decreased by:
Utilized as Anticipated Revenue
1,400,000.00
1,100,000.00
$
2,973,740.93
Fund Balance, December 31
$
2,328,836.56
44


COMPARATIVE STATEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE - SWIMMING POOL OPERATING FUND
YEAR 2020
YEAR 2021
%
AMOUNT
AMOUNT
%
REVENUE AND OTHER INCOME REALIZED
21.40%
41.14%
37.46%
3.14% $
44.79%
52.07%
$
21,157.81
302,246.88
351,401.58
75,028.00
144,264.25
131,342.13
Fund Balance
Fees - Membership
Miscellaneous
100.00%
100.00%
350,634.38
$
674,806.27
Total Revenues
EXPENDITURES
Budget Appropriations:
Operating
Debt Service
Statutory Expenditures and Deferred Charges
77.77%
19.39%
2.84%
79.89% $
16.98%
3.13%
$
369,500.00
78,528.00
14,500.00
315,000.00
78,528.00
11,500.00
100.00% $
405,028.00
100.00%
$
462,528.00
Total Expenditures
(54,393.62)
212,278.27
Excess/(Deficit) in Revenues
FUND BALANCE
$
151,693.18
$
22,271.56
Balance - January 1
$
97,299.56
$
234,549.83
Decreased by:
Utilization as Anticipated Revenue
75,028.00
21,157.81
$
22,271.56
$
213,392.02
Balance - December 31
45


COMPARATIVE SCHEDULE OF TAX RATE INFORMATION
2021
2020
2019
$9,639
$9,422
$9,167
Tax Rate
Appointment of Tax Rate:
Municipal
2.713
2.721
2.575
0.116
0.104
0.105
Municipal Library
County General
1.276
1.130
1.129
0.095
County Open Space
0.095
0.105
5.263
Local School
5.429
5.372
$491,481,557.00
Year 2021
Year 2020
Year 2019
$492,104,366.00
$493,000,675.00
COMPARISON OF TAX LEVIES AND COLLECTION CURRENTLY
A study of the tabulation will indicate a possible trend in future tax levies. A decrease in
the percentage of current collection could be an indication of a probable increase in future tax
levies.
PERCENTAGE
CASH
COLLECTIONS
OF
COLLECTION
TAX LEVY
YEAR
$46,885,651.87
45,808,928.24
44,609,463.47
98.80%
98.72%
98.41%
$47,453,509.38
46,402,353.48
45,326,701.46
2021
2020
2019
46


DELINQUENT TAXES AND TAX TITLE LIENS
This tabulation includes a comparison, expressed in percentage of the total of delinquent
taxes and tax title liens, in relation to the tax levies of the last three years.
AMOUNT OF
TAX TITLE
LIENS
AMOUNT OF
DELINQUENT
TAXES
PERCENTAGE
OF TAX
LEVY
DECEMBER
31. YEAR
TOTAL
DELINQUENT
$87,720.06
415,884.70
419,307.69
$521,991.88
553,291.95
633,345.83
$609,711.94
969,176.65
1,052,653.52
1.28%
2.09%
2.32%
2021
2020
2019
PROPERTY ACQUIRED BY TAX TITLE LIEN LIQUIDATION
The value of property acquired by liquidation of tax title liens on December 31, on
the basis of the last assessed valuation of such properties was as follows:
AMOUNT
YEAR
$
1,423,139.00
1,423,139.00
1,423,139.00
2021
2020
2019
COMPARATIVE SCHEDULE OF FUND BALANCES
UTILIZED IN BUDGET
OF SUCCEEDING
YEAR
$1,600,000.00
1,400,000.00
1,100,000.00
2,200,000.00
2,211,000.00
BALANCE
DECEMBER 31
YEAR
$2,741,284.94
2,328,836.56
1,497,915.47
2,586,086.89
3,190,644.60
2021
2020
Current Fund
2019
2018
2017
61,528.00
21,157.81
75,028.00
78,628.00
128,060.00
2021
213,392.02
22,271.56
151,693.18
186,532.20
250,287.56
Swimming Pool Utility
Operating Fund
2020
2019
2018
2017
47


OFFICIALS IN OFFICE AND SURETY BONDS
The following officials were in office during the period under audit:
AMOUNT OF
BOND
NAME
TITLE
John Madden
James Eodice
Jeremiah Carnes
Amy Flood
Jack Mikolajczyk
Martin Quinn
Douglas Rex
Marcia Karrow
Caroline Benson
Mayor
Council President
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember
Business Administrator
Acting Chief Financial Office/
Treasurer
Tax Collector
Purchasing Agent
Municipal Clerk
Court Administrator
Municipal Court Judge
Attorney
Construction Code Official
Health Officer
Tax Assessor
Deputy Borough Clerk
Darcy Delvecchio
Carmen Modica
Linda Chismar
Merari Gaud
Spero Kalambakas
Christopher M. Corsini, Esq.
Robert Klein
Dawn Guttschall
Carmen Modica
*AII officials and employees handling and collecting Borough funds are covered by the
Borough’s insurance policy and blanket bond through the Municipal Excess Liability Joint
insurance Fund. Public Employees Blanket Bond of $1,000,000.00.
48


COMMENTS AND RECOMMENDATIONS


GENERAL COMMENTS
CONTRACTS AND AGREEMENTS REQUIRED TO BE ADVERTISED FOR (N.J.S.A. 40A:11-4)
"Every contract or agreement, for the performance of any work or the furnishing or hiring
of any materials or supplies, the cost or the contract price whereof is to be paid with or out of public
funds not included within the terms of Section 3 of this act, shall be made or awarded only 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 amount set
forth in, or the amount calculated by the Governor pursuant to Section 3 P.L. 1971 C. 198 (C.
40A:11-3), except by contract or agreement.”
Effective July 1, 2020, the bid threshold in accordance with N.J.S.A. 4QA:11-4 is
$17,500.00 or up to $44,000.00 if the entity has a Qualified Purchasing Agent. The Borough has a
Qualified Purchasing Agent and has elected to increase its bid threshold to $44,000.00. The
governing body of the Municipality has the responsibility of determining whether the expenditures
in any category will exceed $44,000.00 within the fiscal year.
Where question arises as to
whether any contract or agreement might result in violation of the statute, the Borough Counsel’s
opinion should be sought before a commitment is made.
The minutes indicate that bids were requested by public advertising for the following items:
2019 Road Reconstruction & Improvement Project-Fisher Ave and Ashland Road
2020 Road Program (Harris, Sherman, Chestnut and Hazelwood)
Phase II Sewer (Greenbrook Road & Louis Ave Pump Station)
The minutes indicate that resolutions were adopted and advertised authorizing the
awarding of contracts or agreements for "Professional Services" per N.J.S.A. 40A:11-5 for the
following services:
Municipal Prosecutor
Bond Counsel
Labor Attorney
Municipal Attorney
Municipal Auditor
Municipal Engineer
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 or any materials or supplies,
the results of such an accumulation could not reasonably be ascertained. Disbursements were
reviewed, however, to determine whether any clear cut violations existed.
Our examination of expenditures did not reveal any individual payments, contracts or
agreements in excess of $44,000.00 for the performance of any work or the furnishing or hiring of
any materials or supplies, other than those where bids had been previously sought by public
advertisement or where a resolution had been previously adopted under the provisions of N.J.S.A.
40A:11-6.
49


COLLECTION OF INTEREST ON DELINQUENT TAXES AND ASSESSMENTS
The statute 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 5, 2021 adopted the following resolutions authorizing
interest to be charged on delinquent taxes:
BE IT RESOLVED by the Mayor and Council of the Borough of Middlesex, as follows:
In the event the quarterly payment of taxes or assessments are not paid on the date on
which they become delinquent, but are paid within ten days on the date on which they
become delinquent, the Tax Collector be and is hereby authorized to collect interest on all
such delinquent payments; and
In the event that quarterly payment of taxes and assessments are nit paid within ten days
of the date on which they become delinquent, and the total amount of said delinquency is
less than $1,500.00, the Tax Collector be and is hereby authorized to collect 8% interest
per annum from the date said payments first become delinquent up to $1,500.00 of the
delinquency and 18% interest on all such delinquent payments over $1,500.00.
Pursuant to N.J.S.A. 54:4-67, which is the New Jersey statute defining a tax delinquency,
the Governing Body of the Borough of Middlesex does hereby fix a penalty to be charged
to a taxpayer with a delinquency in excess of $10,000.00 who fails to pay the delinquency
prior to the end of the calendar year 2021 and the penalty so fixed shall be six (6%) of the
amount of the yearly delinquency.
DELINQUENT TAXES AND TAX TITLE LIENS
The last tax sale was held on December 7, 2021 and was complete.
The following comparison is made of the number of tax title liens on December 31 of the
last three years:
AMOUNT
YEAR
9
2021
10
2020
11
2019
Inspection of tax sale certificates on file revealed that all tax sale certificates were
available for audit.
50


VERIFICATION OF DELINQUENT TAXES AND OTHER CHARGES
A test verification of delinquent charges and current payments was made in accordance
with the regulations of the Division of Local Government Services, including the mailing of
verification notices as follows:
Information Tax Positive Confirmation
Delinquent Tax Positive Confirmation
50
25
PAYROLL
Our audit of the Payroll account disclosed that there was no resolution authorizing the use
of ADP as the Borough’s third party payroll service provider in accordance with N.J.A.C. 5:30-17.3
and there was no resolution approving an official responsible for the oversight of ADP, there was
no signed contract approving ADP as a third party provider and all employees eligible to receive
health benefit waiver payments received the full $5,000.00 allotment. A calculation is not
performed to determine if the cost saved is less than 25% of the cost saved which would be the
payment if less than the $5,000.00
MUNICIPAL COURT
During the audit of the court it was noted that disbursements required to be made by the
15th day of the subsequent month were not made for three (3) of the months.
The bank reconciliation page for the General Account is not always fully completed and
balanced.
ENCUMBRANCES ACCOUNTING SYSTEM
There were three (3) purchase orders tested that were determined to be confirming orders;
that is, purchases were made for goods or services without providing a written purchase order to
the Chief Financial Officer to encumber on a timely basis. In effect, the controls that minimize the
possibilities of overexpenditures and unauthorized purchases are not in operations.
OTHER COMMENTS
Transactions invariably occur in one fund which require a corresponding entry to be made
in another fund, thus creating interfund balances. Reference to the various balance sheets show
the interfund balances remaining at year end. As a general rule all interfund balances should be
closed out as of the end of the year. It is the Borough's policy to review and liquidate all interfund
balances on a periodic basis.
51


RECOMMENDATIONS
That a resolution authorizing the use of the Borough’s third party payroll service provider in
accordance with N.J.A.C. 5:30-17.3 be adopted.
That there be a signed contract approving a third party provider.
That a calculation be made for all employees receiving health benefit waiver payments to
determine the amount of payments to be received
That all disbursements by the Municipal Court be made by the 15,h of the subsequent
month.
That the bank reconciliation page for the Municipal Court General Account be fully
completed and balanced.
That the use of confirming orders be stopped.
That interfunds at a minimum be liquidated by the end of the year when possible.
52

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