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Executive Summary
The Borough of North Arlington's audit report for the year ended December 31, 2024, reveals the borough's financial activities, compliance with regulations, and supplementary schedules. The audit encompasses financial statements, including comparative balance sheets and statements of operations for various funds, prepared on a regulatory basis. Key areas covered include the Current Fund, Trust Funds (Animal Control, Other Trust, Unemployment Insurance, and Length of Service Awards Program), the General Capital Fund, and the General Fixed Assets Account Group. The report provides insights into the borough's financial position, revenues, expenditures, and compliance with government auditing standards, with an independent auditor's assessment.
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--- Document: Audit Report Document ---
BOROUGH OF NORTH ARLINGTON
BERGEN COUNTY, NEW JERSEY
REPORT OF AUDIT
YEAR ENDED DECEMBER 31, 2024
BOROUGH OF NORTH ARLINGTON
BERGEN COUNTY
PART I
REPORT ON AUDIT OF FINANCIAL STATEMENTS
AND SUPPLEMENTARY SCHEDULES
YEAR ENDED DECEMBER 31, 2024
Exhibits
A
A-1
A-2
A-3
B
C
C-1
D
A-4
A-5
A-6
A-7
A-8
A-9
A-10
A-11
A-12
A-13
A-14
A-15
A-16
A-17
BOROUGH OF NORTH ARLINGTON
TABLE OF CONTENTS
Part I - Report on Audit of Financial Statements and Supplementary Schedules
Independent Auditor's Report
Financial Statements
Comparative Balance Sheets - Regulatory Basis - Current Fund
Comparative Statements of Operations and Changes in Fund Balance -
Regulatory Basis - Current Fund
Statement of Revenues - Regulatory Basis - Current Fund
Statement of Expenditures - Regulatory Basis - Current Fund
Comparative Balance Sheets - Regulatory Basis - Trust Funds
Comparative Balance Sheets - Regulatory Basis - General Capital Fund
Comparative Statements of Changes in Fund Balances - Regulatory Basis -
1-3
4
5
6-7
8-13
14-15
16
General Capital Fund
1 7
Comparative Balance Sheets - Regulatory Basis - General Fixed Assets Account Group
18
Notes to Financial Statements
Supplementary Schedules
Current Fund
Statement of Cash - Collector/Treasurer
Statement of Change Funds
Statement of Amount Due from State ofNew Jersey- Senior Citizens'
And Veterans' Deductions
Statement of Grants Receivable
Statement of Taxes Receivable and Analysis of Property Tax Levy
Statement of Tax Title Liens
Statement of Revenue Accounts Receivable
Statement of 2023 Appropriation Reserves
Statement of Encumbrances Payable
Statement of Fees Payable
Statement of Prepaid Payable
Statement of Tax Overpayments
Statement of County Taxes Payable
Statement of Local School District Taxes Payable
19-60
61
62
62
63
64
65
65
66-67
68
68
69
69
70
70
Exhibits
A-18
A-19
A-20
A-21
A-22
A-23
A-24
A-25
B-2
B-3
B-4
B-5
B-6
B-7
B-8
B-9
B-10
B-11
B-12
B-13
C-2
C-3
C-4
C-5
C-6
C-7
C-8
C-9
C-10
C-11
C-12
C-13
C-14
BOROUGH OF NORTH ARLINGTON
TABLE OF CONTENTS
(Continued)
Supplementary Schedules (Continued)
Current Fund (Continued)
Statement of Appropriated Grant Reserves
Statement of Reserve for Federal and State Grants - Unappropriated
Statement of Miscellaneous Reserves
Statement of Reserve for Tax Appeals
Statement of Accounts Payable
Statement of Deferred Charges - Emergency Authorization
Statement of Due to North Arlington Public Library
Statement of Prepaid Expense - Payroll
Trust Funds
Statement of Cash and Investments- Collector/Treasurer
Statement of Due To Current Fund Animal Control Trust Fund
Statement of Amount Due To/From State ofNew Jersey-Animal Control Fund
Statement of Reserve for Animal Control Expenditures - Animal Control Fund
Statement of Due from Current Fund- Other Trust Fund
Statement of Payroll and Payroll Deductions Payable - Other Trust Fund
Statement of Reserve for Library Expenditure - Other Trust Fund
Statement of Miscellaneous Reserves - Other Trust Fund
Statement of Reserve for Third Party Ambulance Billings - Other Trust Fund
Statement of Reserve for Unemployment Insurance Benefits -
Unemployment Insurance Trust Fund
Statement of Due to State ofNew Jersey- Unemployment Insurance
Trust Fund
Statement of Due to Other Trust Fund- Unemployment Insurance
Trust Fund
General Capital Fund
Statement of Cash - Collector/Treasurer
Analysis of Cash
Statement of Grants Receivable
Statement of Due From Current Fund
Statement of Deferred Charges to Future Taxation -Funded
Statement of Deferred Charges to Future Taxation - Unfunded
Statement of General Serial Bonds
Statement of Bond Anticipation Notes
Statement of Improvement Authorizations
Schedule of Contracts Payable
Statement of Capital Improvement Fund
Statement of Reserve for Payment of Debt
Statement of Bonds and Notes Authorized But Not Issued
71
72
72
73
73
73
74
74
75
76
76
77
77
78
78
79
80
80
80
80
81
82
83
84
84
85
86
87
88
89
89
89
90
Exhibits
BOROUGH OF NORTH ARLINGTON
TABLE OF CONTENTS
(Continued)
Part II - Government Auditing Standards
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
Report on Compliance for Each Major Federal Program; Report on Internal
Control Over Compliance; and Report on the Schedule of Expenditures of Federal
Awards Required By U.S. Uniform Guidance
Schedule of Expenditures of Federal Awards, Schedule A
Schedule of Expenditures of State Financial Assistance, Schedule B
Notes to the Schedules of Expenditures of Federal Awards and
State Financial Assistance
Schedule of Findings and Questioned Costs
Summary Schedule of Prior Year Audit Findings
Part III - Supplementary Data and Letter of Comments and Recommendations
Comparative Statement of Operations and Change in Fund Balance -
Current Fund
Comparative Schedule of Tax Rate Information
Comparison of Levies and Collection Currently
Delinquent Taxes and Tax Title Liens
Comparative Schedule of Fund Balances
Officials in Office and Surety Bonds
General Comments
Recommendations
91-92
93-95
96
97
98
99-101
102
103
104
104
105
105
106
107-108
109
LERCH, VINCI & BLISS, LLP
CERTIFIED PUBLIC ACCOUNT ANTS
REGISTERED MUNICIPAL ACCOUNT ANTS
DIETER P. LERCH, CPA, RMA, PSA
GARY J. VINCI, CPA, RMA, PSA
JEFFREY C. BLISS, CPA, RMA, PSA
PAULJ. LERCH, CPA, RMA, PSA
JULIUS B. CONSONI, CPA, PSA
ANDREW D. PARENTE, CPA, RMA, PSA
ELIZABETH A. SHICK, CPA, RMA, PSA
ROBERT W. HAAG, CPA, RMA, PSA
Honorable Mayor and
Members of the Borough Council
Borough of North Arlington
North Arlington, New Jersey
INDEPENDENT AUDITOR'S REPORT
Report on the Audit of the Financial Statements
Opinions
DEBRA GOLLE, CPA
MARK SACO, CPA
ROBERT LERCH, CPA, PSA
CHRISTOPHERM. VINCI, CPA, PSA
CHRISTINA CUIFFO, CPA, PSA
JOHN CUIFFO, CPA, PSA
We have audited the financial statements of the Borough of North Arlington which comprise the balance sheets -
regulatory basis of the various funds and account group, as of December 31, 2024 and 2023, and the related statements of
operations and changes in fund balance - regulatory basis for the years then ended, and the related statement of revenues -
regulatory basis and statement of expenditures - regulatory basis of the Current Fund for the year ended December 31,
2024, and the related notes to the financial statements.
Qualified Opinion on Regulatory Basis of Accounting
In our opinion, except for the effects of the matters discussed in the Basis for Qualified Opinion on Regulatory Basis of
Accounting section of our report, the accompanying financial statements - regulatory basis referred to above present
fairly, in all material respects, the financial position - regulatory basis of the various funds and account group of the
Borough of North Arlington as of December 31, 2024 and 2023, and the results of operations and changes in fund balance
- regulatory basis of such funds for the years then ended and the respective revenues - regulatory basis and expenditures -
regulatory basis of the Current Fund for the year ended December 31, 2024 in accordance with the financial accounting
and reporting provisions and practices prescribed by the Division of Local Government Services, Department of
Community Affairs, State ofNew Jersey as described in Note 1.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally
Accepted Accounting Principles section of our report, the accompanying 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 each fund of the Borough of North Arlington as of December 31, 2024 and 2023, or changes in financial
position for the years then ended.
Basis for Opinions
We conducted our audits in accordance with auditing standards generally accepted in the United States of America, the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of
the United States and the audit requirements prescribed by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey. 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 of North Arlington and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinions.
17-17 ROUTE 208 FAIR LAWN, NJ 07410 • TELEPHONE (201) 791-7100 • FACIMILE (201) 791-3035
WWW.LVBCPA.COM
1
Basis for Qualified Opinion on Regulatory Basis of Accounting
As discussed in Note 17 of the financial statements, the financial statements - regulatory basis of the Length of Service
Awards Program (LOSAP) Trust Fund have not been audited, and we were not required by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey, to audit nor were we engaged to audit the
LOS AP Trust Fund financial statements as part of our audit of the Borough's financial statements as of and for the years
ended December 31, 2024 and 2023. The LOSAP Trust Fund financial activities are included in the Borough's Trust Funds,
and represent 4 7 percent and 46 percent of the assets and liabilities of the Borough's Trust Funds as of December 31, 2024
and 2023, respectively.
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note 1 of the financial statements, the financial statements are prepared by the Borough of North
Arlington on the basis of the financial accounting and reporting provisions and practices that demonstrate compliance
with the regulatory basis of accounting and budget laws prescribed by the Division of Local Government Services,
Department of Community Affairs, State of New Jersey, which is a basis of accounting other than accounting principles
generally accepted in the United States of America, to meet the financial reporting requirements of the State of New
Jersey for municipal government entities.
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 and pervasive.
Responsibilities of Management/or the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with the
financial accounting and reporting provisions and practices that demonstrate compliance with the regulatory basis of
accounting and budget laws prescribed by the Division of Local Government Services, Department of Community
Affairs, State of New Jersey as described in Note 1. Management is also responsible for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatements, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the Borough of North Arlington'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/or the Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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 generally accepted auditing standards, Government Auditing Standards and audit requirements
prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, 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.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards and
audit requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of
New Jersey, we:
•
Exercise professional judgement 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 of North Arlington's internal control. Accordingly, no such opinion is expressed.
2
•
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 of North Arlington'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 an opinion on the financial statements of the Borough of North
Arlington as a whole. The supplementary schedules listed in the table of contents, schedule of expenditures of federal
awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and schedule of expenditures of state
financial assistance are presented for purposes of additional analysis and are not a required part of the financial statements
of the Borough of North Arlington. Such information is the responsibility of management and was derived from and
relate directly to the underlying accounting and other records used to prepare the financial statements. The information
has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting and other records
used to prepare the financial statements or to the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary
schedules listed in the table of contents, schedule of expenditures of federal awards and schedule of expenditures of state
financial assistance are fairly stated, in all material respects, in relation to the financial statements as a whole on the basis
of accounting described in Nate 1.
Other Information
Management is responsible for the other information included in the report of audit. The other information comprises the
supplementary data and letter of comments and recommendation section but does not include the financial statements and
our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not
express an opinion or any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and consider
whether a material inconsistency exists between the other information and the financial statements, or the other
information otherwise appears to be materially misstated.
If, based on the work performed, we conclude that an
uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated August 7, 2025 on our
consideration of the Borough of North Arlington'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 of North Arlington'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 the Borough of North Arlington's · ternal control over financial reporting
and compliance.
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H, VINCI & BLISS, LLP
Fair Lawn, New Jersey
August 7, 2025
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ified Public Accountants
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Municipal Accountant
RMA Number CR000457
BOROUGH OF NORTH ARLINGTON
COMPARATIVE BALANCE SHEETS-REGULATORY BASIS
CURRENT FUND
AS OF DECEMBER 31, 2024 AND 2023
ASSETS
Current Fund
Cash and Cash Equivalents
Cash - Change Funds
Due from State of New Jersey - Senior & Veterans Deductions
Grants Receivable
Receivables and Other Assets With Full Reserves
Taxes Receivable
Tax Title Liens Receivable
Interfunds Receivable
Due From Animal Control Trust Fund
Prepaid Payroll
Revenue Accounts Receivable
Deferred Charges:
Emergency Authorizations
Total Assets
LIABILITIES, RESERVES AND FUND BALANCE
Liabilities
Appropriation Reserves
Encumbrances Payable - Current Fund
Encumbrances Payable - Grants
Accounts Payable
Fees Payable
Prepaid Taxes
Tax Overpayments
County Added and Omitted Taxes Payable
Interfunds Payable
Due to Other Trust Fund
Due to General Capital Fund
Due to North Arlington Public Library
Reserve for Tax Appeals
Reserve for Federal and State Grants - Appropriated
Reserve for Federal and State Grants - Unappropriated
Miscellaneous Reserves
Reserve for Receivables
Fund Balance
Total Liabilities, Reserves and Fund Balance
The Accompanying Notes are an Integral Part of these Financial Statements
4
Reference
A-4
A-5
A-6
A-7
A-8
A-9
B-3
A-25
A-10
A-23
A-3,A-11
A-12
A-12
A-22
A-13
A-14
A-15
A-16
B-6
C-5
A-24
A-21
A-18
A-19
A-20
A
A-1
$
$
$
$
EXHIBIT A
Page 1
2024
2023
14,268,810
$
15,716,093
200
200
41,117
42,327
460,003
483,909
14,770,130
16,242,529
631,626
506,920
59,713
158,745
46,941
37,027
425,251
34,404
27,930
1,197,935
730,622
49,500
2,104,000
16,017,565
$
19,077,151
2,708,469
$
2,299,252
326,835
2,526,222
169,519
52,508
41,445
321,176
21,204
18,990
335,628
184,841
10,165
93,166
2,166
338,249
504,292
537,290
504,540
218,973
1,929,974
1,956,126
615,390
833,576
315,638
932,113
125,498
7,570,945
10,352,300
1,197,935
730,622
7,248,685
7,994,229
16,017,565
$
19,077,151
BOROUGH OF NORTH ARLINGTON
COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE
REGULATORY BASIS - CURRENT FUND
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
REVENUE AND OTHER INCOME REALIZED
Surplus Anticipated
Miscellaneous Revenue Anticipated
Receipts from Delinquent Taxes
Receipts from Current Taxes
Non-Budget Revenues
Other Credits to Income:
Interfunds Returned
Prior Year SeniorN ets Allowed
Unexpended Balance of Appropriation Reserves
Cancellation of Prior Year Accounts Payable
Statutory Excess - Animal Control Trust Fund
Total Income
EXPENDITURES
Budget Appropriations
Operations
Salaries and Wages
Other Expenses
Capital Improvements
Municipal Debt Service
Deferred Charges, Statutory Expenditures and Judgments
Local District School Tax
County Taxes
Increase in Prepaid Expenses
Prior Year SeniorN ets Disallowed
Interfunds Advanced
Total Expenditures
Excess in Revenue
Adjustment to Income before Surplus:
Expenditures included above which are by Statute Deferred
Charges to Budgets of Succeeding Years
Statutory Excess to Surplus
Fund Balance, January 1
Less: Utilized as Anticipated Revenue
Fund Balance, December 31
The Accompanying Notes are an Integral Part of these Financial Statements
5
Reference
A-2
$
A-2
A-2
A-2
A-2
A
A-6
A-11
A-22
B-5
A-3
A-3
A-3
A-3
A-3
A-17
A-16
A-1
A-8
A
A-23, A-1
A-1
A
A-2
A
$
2024
4,277,766
6,668,144
452,747
56,109,200
557,714
37,027
250
1,454,449
41,000
9,914
69,608,211
10,114,148
12,143,332
500,000
3,836,923
2,219,392
30,884,196
5,950,806
425,251
4,500
46,941
66,125,489
3,482,722
49,500
3,532,222
7,994,229
11,526,451
4,277,766
7,248,685
EXHIBIT A-1
2023
$
4,195,000
6,272,896
458,752
54,881,292
213,376
32,833
500
1,758,573
4,194
67,817,416
9,096,190
12,166,491
3,304,000
3,546,415
2,067,562
29,949,974
5,672,845
5,167
37,027
65,845,671
1,971,745
2,104,000
4,075,745
8,113,484
12,189,229
4,195,000
$
7,994,229
BOROUGH OF NORTH ARLINGTON
STATEMENT OF REVENUES-REGULATORY BASIS
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
Reference
ANTICIPATED SURPLUS
A-1
MISCELLANEOUS REVENUES
Licenses
Alcoholic Beverages
A-10
Other
A-2
Fees and Permits
A-2
Fines and Costs
Municipal Court
A-10
Interest and Costs on Taxes
A-10
Parking Meters
A-10
Interest on Investments and Deposits
A-2
Cable Television Franchise Fees
A-10
New Jersey Meadowlands Commission
Tax SharingNJSA 13:17-74
A-10
Energy Receipts Tax
A-10
Reserve for Municpal Relief Aid
A-20
Uniform Construction Code Fees
A-10
State and Federal Revenues Offset with Appropriations
Clean Communities Grant
A-19
Drunk Driving Enforcement Fund
A-19
Storm Water
A-19
CARES Act
A-19
American Rescue Plan - Reserve
A-19
Hazardous Waste Grant
A-19
Other Special Items of Revenue
Uniform Fire Safety Act
A-10
Third Party Billing - Emergency Medical Services
A-10
Library Insurance Reimbursement
A-10
Reserve for Payment of Debt
A-10, C-13
Reserve for State Library Aid
A-20
Passaic Valley Sewer Commission - Fire Hydrants
A-10
A-1
RECEIPTS FROM DELINQUENT TAXES
A-1, A-8
AMOUNT TO BE RAISED FOR SUPPORT OF
MUNICIPAL BUDGET
Local Tax for Municipal Purposes
Minimum Library Tax
Total Amount to be Raised for Support of Municipal Budget
A-2
Total General Revenues
Non-Budget Revenue
A-1, A-2
The Accompanying Notes are an Integral Part of these Financial Statements
6
Added by
2024
N.J.S.
Budget
40A:4-87
$
4,277,766
2,250
7,800
35,000
300,000
130,000
30,000
500,000
173,835
1,290,776
1,082,618
111,593
250,000
31,178
3,634
15,000
8,438
841,516
32,347
20,000
360,000
42,000
262,050
13,905
34,500
5,578,440
400,000
19,056,974
877,533
19,934,507
$
30,190,713
$
EXHIBIT A-2
Page 1
2024
Excess or
Realized
(Deficit)
$
4,277,766
55,564 $
53,314
13,909
6,109
61,953
26,953
333,300
33,300
101,532
(28,468)
47,011
17,01 I
1,325,029
825,029
173,835
1,290,776
1,082,618
111,593
373,483
123,483
31,178
3,634
15,000
8,438
841,516
32,347
32,406
12,406
378,567
18,567
42,000
262,050
13,905
36,500
2,000
6,668,144
1,089,704
452,747
52,747
19,821,665
764,691
877,533
20,699,198
764,691
32,097,855
$
1,907,142
557,714
$
32,655,569
BOROUGHOFNORTHARLlNGTON
STATEMENT OF REVENUES-REGULATORY BASIS
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
(Continued)
ANALYSIS OF REALIZED REVENUES
Allocation of Current Tax Collection
Revenue from Collections
Less: Allocated to School and County Taxes
Balance for Support of Municipal Budget Appropriations
Add: Appropriation "Reserve for Uncollected Taxes"
Amount for Support of Municipal Budget Appropriations
Licenses - Other
Borough Clerk
Board of Health
Fees and Permits
Borough Clerk
Recreation
Board of Health
Police
Interest on Investments and Deposits
Revenue Accounts Receivable
Due from Other Trust Fund
Due from General Capital Fund
Non Budget Revenues
PoliceAdmin
Library Refund PY
LOSAP Forfeitures
Worker's Compensation Refunds
Summer Camp Fees
Auction Proceeds
Insurance Claim Proceeds
Miscellanous
FEMA Reimbursement
Prior Year Refunds
Police Range Fees
Clothing Bin Fees
Bergen County Elections Reimbursement
PVMC Rebate
Newspaper Ad Fees
Road Inspection Fees
JIF Insurance Award
SRNETS Admin Fee
PILOT
The Accompanying Notes are an Integral Part of these Financial Statements
7
Reference
A-1,A-8
A-16, A-17
A-3
A-3
A-2
A-10
A-10
A-2
A-10
A-10
A-10
A-10
A-2
A-10
B-6
C-8
A-2
A-1,A-4
$
$
$
$
$
$
$
$
$
$
EXHIBIT A-2
Page 2
56,109,200
36,835,002
19,274,198
1,425,000
20,699,198
1,270
12,639
13,909
19,425
1,590
13,317
27,621
61,953
1,061,215
10,126
253,688
1,325,029
155,693
153,294
92,861
49,440
28,090
20,299
18,865
9,798
8,002
4,290
3,150
2,700
2,419
2,037
1,950
1,650
1,300
960
916
557,714
EXHIBIT A-3
Page 1
BOROUGH OF NORTH ARLINGTON
STATEMENT OF EXPENDITURES- REGULATORY BASIS
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
A1;mropriated
Expended
Unexpended
Budget After
Paid or
Balances
GENERAL APPROPRIATIONS
Budget
Modification
Charged
Reserved
Cancelled
OPERATIONS - WITHIN "CAPS"
GENERAL GOVERNMENT FUNCTIONS
Administrative and Executive
Salaries and Wages
$
350,000
$
358,000
$
351,050
$
6,950
Other Expenses
330,000
370,000
366,863
3,137
Borough Council
Salaries and Wages
78,000
85,500
83,998
1,502
Elections
Salaries and Wages
3,800
3,800
1,539
2,261
Other Expenses
17,100
17,100
16,063
1,037
Financial Administration
Salaries and Wages
43,000
45,500
38,616
6,884
Other Expenses
307,000
307,000
183,130
123,870
Collection of Taxes
Salaries and Wages
10,000
10,000
1,491
8,509
Other Expenses
120,000
120,000
111,323
8,677
Assessment of Taxes
Salaries and Wages
38,000
33,000
27,584
5,416
Other Expenses
47,000
77,000
61,893
15,107
Reassessment
65,000
65,000
65,000
Legal Services and Costs
Other Expenses
195,000
210,000
200,852
9,148
Engineering Services and Costs
Other Expenses
100,000
120,000
75,942
44,058
LAND USE ADMINISTRATION
Municipal Land Use Law N.J.S.A. 40:55-Dl
Planning Board
Salaries and Wages
3,000
3,000
3,000
Other Expenses
36,000
1,000
993
7
Zoning Commission
Salaries and Wages
7,600
7,600
6,000
1,600
Other Expenses
12,000
12,000
12,000
CODE ENFORCEMENT ADMINISTRATION
Rent Leveling Board
Salaries and Wages
5,200
5,200
5,200
INSURANCE
Unemployment
45,000
45,000
45,000
Liability Insurance
515,482
515,482
451,894
63,588
Workers Compensation
490,000
490,000
487,986
2,014
Employee Group Insurance
3,090,000
3,005,000
2,644,323
360,677
Health Benefit Waiver
41,000
71,000
68,225
2,775
PUBLIC SAFETY FUNCTIONS
Police Department
Salaries and Wages
4,709,932
4,709,932
4,208,850
501,082
Salaries and Wages - American Rescue Fund
841,516
841,516
841,516
Other Expenses
366,000
366,000
283,685
82,315
The Accompanying Notes are an Integral Part of these Financial Statements
8
EXHIBIT A-3
Page2
BOROUGH OF NORTH ARLINGTON
STATEMENT OF EXPENDITURES- REGULATORY BASIS
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
A1212ro12riated
Exnended
Unexpended
Budget After
Paid or
Balances
GENERAL APPROPRIATIONS
Budget
Modification
Charged
Reserved
Cancelled
OPERATIONS WITHIN "CAPS" (Cont'd.)
Emergency Medical Transportation
Salaries and Wages
$
915,000
$
950,000
$
941,856
$
8,144
Police Dispatch/911
Salaries and Wages
365,000
392,000
368,272
23,728
Crossing Guards
Salaries and Wages
282,000
372,000
356,078
15,922
Office of Emergency Management
Salaries and Wages
16,000
19,000
16,551
2,449
Other Expenses
12,000
12,000
5,487
6,513
Fire Department
Other Expenses
245,000
323,000
189,014
133,986
Contribution to Volunteer Fire
36,500
36,500
36,500
Volunteer Emergency Squad (First Aid Organization)
Other Expenses
120,000
120,000
103,533
16,467
Community Emergency Response Team (CERT)
Other Expenses
5,000
5,000
5,000
Uniform Fire Safety (Ch. 383, P.L. 1983)
Fire Official
Salaries and Wages
42,000
45,000
39,094
5,906
Other Expenses
10,000
10,000
4,733
5,267
Municipal Prosecutor
Salaries and Wages
18,000
18,000
18,000
PUBLIC WORKS FUNCTION
Streets and Roads
Road Repair and Maintenance
Salaries and Wages
1,180,000
1,140,000
1,108,711
31,289
Other Expenses
335,000
335,000
322,365
12,635
Snow Removal
Salaries and Wages
75,000
34,300
14,371
19,929
Other Expenses
200,000
99,000
39,933
59,067
Shade Tree
Other Expenses
65,000
65,000
42,300
22,700
Sanitation
Solid Waste Collection
Other Expenses-Contractual
565,000
560,000
498,142
61,858
Public Building and Grounds
Other Expenses
425,000
493,000
437,436
55,564
Other Expenses
49,500
49,500
Recycling Program
Other Expenses - Contractual
200,000
200,000
185,357
14,643
HEALTH AND HUMAN SERVICES
FUNCTIONS
Board of Health
Salaries and Wages
173,000
173,000
159,049
13,951
Other Expenses
82,000
82,000
78,384
3,616
Dog Warden
Other Expenses
22,000
22,000
22,000
The Accompanying Notes are an Integral Part of these Financial Statements
9
BOROUGH OF NORTH ARLINGTON
STATEMENT OF EXPENDITURES-REGULATORY BASIS
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
A1mronriated
Exnended
Budget After
Paid or
GENERAL APPROPRIATIONS (Cont'd.)
Budget
Modification
Charged
Reserved
OPERATIONS WITHIN "CAPS" (Cont'd.)
PARKS AND RECREATION FUNCTIONS
Recreation
Salaries and Wages
$
14,000
$
17,000
$
15,469
$
1,531
Other Expenses
105,000
97,000
82,740
14,260
Celebration of Public Events
Other Expenses
5,000
30,000
29,643
357
Youth Center
Salaries and Wages
75,000
75,200
75,171
29
Other Expenses
8,000
4,500
3,656
844
Senior Citizen Services
Salaries and Wages
32,000
2,000
2,000
Other Expenses
5,000
5,000
4,474
526
OTHER COMMON OPERA TING
FUNCTIONS
Municipal Court
Salaries and Wages
229,000
229,000
222,526
6,474
Other Expenses
22,000
27,000
25,537
1,463
Public Defenders (P.L. 1997, C.256)
Salaries and Wages
40,000
40,000
13,979
26,021
Salary Negotiations and Costs
310,000
130,600
9,910
120,690
CODE ENFORCEMENT AND
ADMINISTRATION
Uniform Construction Code Enforcement Functions
Construction Code Official
Salaries and Wages
364,000
374,000
360,686
13,314
Other Expenses
40,000
40,000
17,726
22,274
UTILITY EXPENSES AND BULK PURCHASES
Gasoline
195,000
195,000
118,505
76,495
Electricity
240,000
240,000
193,871
46,129
Telephone
152,000
152,000
144,242
7,758
Street Lighting
290,000
290,000
235,814
54,186
Water
18,000
18,000
15,392
2,608
Total Operations Within "CAPS"
19,399,130
19,416,230
17,117,323
2,298,907
Total Operations including Contingent-Within "CAPS"
19,399,130
19,416,230
17,117,323
2,298,907
Detail:
Salaries and Wages
10,220,048
10,114,148
9,262,367
851,781
Other Expenses
9,179,082
9,302,082
7,854,956
1,447,126
The Accompanying Notes are an Integral Part of these Financial Statements
10
EXHIBIT A-3
Page3
Unexpended
Balances
Cancelled
BOROUGH OF NORTH ARLINGTON
STATEMENT OF EXPENDITURES - REGULATORY BASIS
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
Appropriated
Budget After
Expended
Paid or
GENERAL APPROPRIATIONS (Cont'd.)
DEFERRED CHARGES AND
STATUTORY EXPENDITURES -
MUNICIPAL WITHIN "CAPS"
Statutory Charges
Social Security System (O.A.S.I.)
Public Employees' Retirement System
Police and Firemen's Retirement System
Defined Contribution Retirement Program
Total Deferred Charges & Statutory
Expenditures - Municipal within "CAPS"
Total General Appropriation for Municipal
Purposes within "CAPS"
OPERATIONS EXCLUDED FROM "CAPS"
Lyndhurst-North Arlington Joint Meeting
Share of Costs
Maintenance of Free Public Library
Passaic Valley Sewerage Commission
Share of Costs
Length of Service Award Program: (NJSA 40A-45.3)
Contribution
Liability Insurance
Total Other Operations Excluded
from "CAPS"
$
Budget
Modification
420,000
$
441,000
473,042
484,442
1,285,950
1,285,950
8,000
8,000
2,186,992
2,219,392
21,586,122
21,635,622
177,000
177,000
877,533
877,533
1,393,774
1,393,774
113,100
113,100
175,341
175,341
2,736,748
2,736,748
The Accompanying Notes are an Integral Part of these Financial Statements
11
Charged
$
432,545
$
484,432
1,285,950
4,561
2,207,488
19,324,811
131,990
637,985
1,393,774
175,341
2,339,090
8,455
10
3,439
11,904
2,310,811
45,010
239,548
113,100
397,658
EXHIBIT A-3
Page4
Unexpended
Balances
Cancelled
BOROUGH OF NORTH ARLINGTON
STATEMENT OF EXPENDITURES - REGULATORY BASIS
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
A1mro12riated
Ex12ended
Budget After
Paid or
GENERAL APPROPRIATIONS (Cont'd.)
Budget
Modification
Charged
Reserved
OPERATIONS - EXCLUDED FROM
"CAPS" (Cont'd.)
PUBLIC AND PRIVATE PROGRAMS
OFFSET BY REVENUES
Clean Communities Program
$
31,178
$
31,178
$
31,178
Drunk Driving Enforcement Fund
3,634
3,634
3,634
Storm Water
15,000
15,000
15,000
CARES Act
8,438
8,438
8,438
Hazardous Waste Grant
32,347
32,347
32,347
Reserve for State Library Aid
13,905
13,905
13,905
Total Public and Private Programs Offset by Revenues
104,502
104,502
104,502
Total Operations Excluded from "CAPS"
2,841,250
2,841,250
2,443,592
$
397,658
Detail:
Other Expenses
2,841,250
2,841,250
2,443,592
397,658
CAPITAL IMPROVEMENTS -
EXCLUDED FROM "CAPS II
Capital Improvement Fund
500,000
500,000
500,000
Total Capital Improvements Excluded from "CAPS"
500,000
500,000
500,000
MUNICIPAL DEBT SERVICE -
EXCLUDED FROM "CAPS"
Payment of Bond Principal
1,875,000
1,875,000
1,875,000
Payment of Bond Anticipation Notes and Capital Notes
1,562,050
1,562,050
1,562,050
Interest on Bonds
146,186
146,186
146,185
Interest on Notes
255,105
255,105
253,688
Total Municipal Debt Service -
Excluded from "CAPS"
3,838,341
3,838,341
3,836,923
The Accompanying Notes are an Integral Part of these Financial Statements
12
EXHIBIT A-3
Page 5
Unexpended
Balances
Cancelled
$
1,417
1,418
BOROUGH OF NORTH ARLINGTON
STATEMENT OF EXPENDITURES- REGULATORY BASIS
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
Appropriated
Expended
Budget After
Paid or
GENERAL APPROPRIATIONS (Cont'd.)
Budget
Modification
Charged
Total General Appropriations for Municipal
Purposes Excluded from "CAPS"
$
7,179,591
$
7,179,591
$
6,780,515
$
Subtotal General Appropriations
28,765,713
28,815,213
26,105,326
Reserve for Uncollected Taxes
1,425,000
1,425,000
1,425,000
Total General Appropriations
$
30,190,713
$
30,240,213
$
27,530,326
$
A-1
Budget
Expended
After
Paid or
Reference
Modification
Charged
Budget as Adopted
A-2
$
30,190,713
Emergency Authoization
A-23
49,500
$
30,240,213
Cash Disbursements
A-4
$
25,639,489
Encumbrances Payable
A-12
326,835
Appropriated Grant Reserves
A-18
139,002
Reserve for Uncollected Taxes
A-2
1,425,000
$
27,530,326
The Accompanying Notes are an Integral Part of these Financial Statements
13
Reserved
397,658
2,708,469
2,708,469
A,A-1
EXHIBIT A-3
Page 6
Unexpended
Balances
Cancelled
$
1,418
1,418
$
1,418
A-1
BOROUGH OF NORTH ARLINGTON
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS -TRUST FUNDS
AS OF DECEMBER 31, 2024 AND 2023
Reference
ASSETS
ANIMAL CONTROL FUND
Cash
B-2
OTHER TRUST FUND
Cash
B-2
Due from Current Fund
B-6
Due from Unemployment Trust Fund
B-13
UNEMPLOYMENT INSURANCE TRUST FUND
Cash
B-2
LENGTH OF SERVICE A WARD PROGRAM (UNAUDITED)
Investments
B
Contributions Receivable
B
Total Assets
The Accompanying Notes are an Integral Part of these Financial Statements
14
2024
$
53,012
$
53,012
3,425,833
338,249
116,460
3,880,542
282,014
3,580,664
105,925
3,686,589
$
7,902,157
$
EXHIBITB
2023
50,047
50,047
3,013,352
504,292
40,033
3,557,677
260,679
3,205,364
88,600
3,293,964
7,162,367
BOROUGH OF NORTH ARLINGTON
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS -TRUST FUNDS
AS OF DECEMBER 31, 2024 AND 2023
Reference
LIABILITIES, RESERVES AND FUND BALANCE
ANIMAL CONTROL FUND
Due to Current Fund
B-3
Due to State ofNew Jersey
B-4
Reserve for Animal Control Expenditures
B-5
OTHER TRUST FUND
Reserve for Library Expenditure
B-8
Reserve for Third Party Ambulance Billings
B-10
Miscellaneous Reserves
B-9
UNEMPLOYMENT INSURANCE TRUST FUND
Reserve for Unemployment Insurance Benefits
B-11
Due to Other Trust Fund
B-13
LENGTH OF SERVICE AW ARD PROGRAM (UNAUDITED)
Net Assets Available for Benefits
B
LIABILITIES, RESERVES AND FUND BALANCE
The Accompanying Notes are an Integral Part of these Financial Statements
15
$
46,941
$
58
6,013
53,012
91,083
6,664
3,782,795
3,880,542
165,554
116,460
282,014
3,686,589
$
7,902,157
$
EXHIBIT B
2023
37,027
115
12,905
50,047
91,236
3,466,441
3,557,677
220,646
40,033
260,679
3,293,964
7,162,367
BOROUGH OF NORTH ARLINGTON
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS
GENERAL CAPITAL FUND
AS OF DECEMBER 31, 2024 AND 2023
Reference
2024
ASSETS
Cash
C-2, C-3
$10,077,206
Grants Receivable
C-4
428,880
Due from Current Fund
C-5
537,290
Deferred Charges to Future Taxation
Funded
C-6
3,114,000
Unfunded
C-7
9,288,218
Total Assets
$ 23,445,594
LIABILITIES, RESERVES AND FUND BALANCE
General Serial Bonds
C-8
$ 3,114,000
Bond Anticipation Notes Payable
C-9
8,030,000
Improvement Authorizations:
Funded
C-10
554,692
Unfunded
C-10
3,261,610
Contracts Payable
C-11
4,620,322
Reserve for Grants Receivable
C-4
Reserve for Payment of Debt
C-13
1,208,203
Capital Improvement Fund
C-12
885,420
Fund Balance
C-1
1,771,347
Total Liabilities, Reserves and Fund Balance
$ 23,445,594
EXHIBIT C
2023
$ 7,146,019
159,762
504,540
4,989,000
8,283,012
$ 21,082,333
$ 4,989,000
5,669,000
1,732,852
2,946,294
2,416,682
37,211
262,050
1,733,672
1,295,572
$ 21,082,333
There were bonds and notes authorized but not issued of$1,351,l 18 and $2,706,912 at December 31, 2024
and 2023, respectively (Exhibit C-14).
The Accompanying Notes are an Integral Part of these Financial Statements
16
EXHIBIT C-1
BOROUGH OF NORTH ARLINGTON
COMPARATIVE STATEMENTS OF CHANGES IN FUND BALANCES - REGULATORY BASIS
GENERAL CAPITAL FUND
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
Reference
Balance, January 1
C
Increased by:
Premium on Issuance of Bond Anticipation Notes
C-2
Cancellation of Funded Improvement Authorization Balances
C-10
Balance, December 31
C
The Accompanying Notes are an Integral Part of these Financial Statements
17
2024
$ 1,295,572
54,746
421,029
475,775
$ 1,771,347
2023
$
811,688
30,102
453,782
483,884
$ 1,295,572
EXHIBITD
BOROUGH OF NORTH ARLINGTON
COMPARATIVE BALANCE SHEETS - GENERAL FIXED ASSETS ACCOUNT GROUP
REGULATORY BASIS
AS OF DECEMBER 31, 2024 AND 2023
ASSETS
Land and Improvements
Buildings and Building Improvements
Vehicles and Equipment
LIABILITIES
Investment in General Fixed Assets
The Accompanying Notes are an Integral Part of these Financial Statements
18
2024
2023
$
9,361,901
$
9,361,901
9,369,274
9,118,309
9,862,610
9,668,223
$
28,593,785
$
28,148,433
$
28,593,785
$
28,148,433
NOTES TO FINANCIAL STATEMENTS
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A.
Reporting Entity
The Borough of North Arlington (the "Borough") was incorporated in 1840 and operates under an elected Mayor and
Council form of government. The Mayor is elected to a four-year term and the six council members are elected at-
large, two each year for terms of three years. The Mayor is the Chief Executive Officer of the Borough and as such
presides over all public meetings and makes appointments to various boards. The Borough Council exercises all
legislative powers including final adoption of the municipal budget and bond ordinances and confirmation of the
Mayor's appointments, and all executive authority which is not specifically provided to the Mayor, by State law. A
Borough Administrator is appointed by the Borough Council and is responsible for the implementation of the policies of
the Mayor and Council, for the administration of all Borough affairs and for the day to day operations of the Borough.
The Borough Administrator is the Chief Administrative Officer for the Borough. The Borough's major operations
include public safety, road repair and maintenance, sanitation, fire protection, recreation and parks, health services, and
general administrative services.
GASB requires the financial reporting entity to include both the primary government and component units. Component
units are legally separate organizations for which the Borough is fmancially 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 organization; 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. Component units may also include organizations that are
fiscally dependent on the Borough in that the Borough approves the budget, the issuance of debt or the levying of taxes.
The Borough is not includable in any other reporting entity as a component unit.
The financial statements contained herein include only those boards, bodies, officers or commissions as required by NJS
40A:5-5. Accordingly, the financial statements of the Borough do not include the municipal library, volunteer fire
department or volunteer ambulance squad, which are considered component units under GAAP. Complete fmancial
statements of the above component units can be obtained by contacting the Treasurer of the respective entity.
B.
Description of Regulatory Basis of Accounting
The fmancial statements of the Borough of North Arlington have been prepared on a basis of accounting in conformity
with accounting principles and practices prescribed or permitted by the Division of Local Government Services,
Department of Community Affairs, State of New Jersey (the "Division") which is a regulatory basis of accounting other
than accounting principles generally accepted in the United States of America (GAAP). Such principles and practices
are designed primarily for determining compliance with legal provisions and budgetary restrictions and as a means of
reporting on the stewardship of public officials with respect to public funds. Under this method of accounting, the
Borough accounts for its financial transactions through separate funds, which differ from the fund structure required by
GAAP.
The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing
governmental accounting and financial reporting principles. GASB has adopted accounting statements to be used by
governmental units when reporting financial position and results of operations in accordance with accounting principles
generally accepted in the United States of America. (GAAP). The municipalities in the State of New Jersey do not
prepare financial statements in accordance with GAAP and thus do not comply with all of the GASB pronouncements.
However under the regulatory basis of accounting municipalities are required to follow GASB pronouncements with
regard to disclosure requirements for notes to the financial statements.
19
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C.
Basis of Presentation - Financial Statements
The Borough uses funds, as required by the Division, to report on its financial position and the results of its operations.
Fund accounting is designed to demonstrate legal compliance and to aid financial administration by segregating
transactions related to certain Borough functions or activities. The Borough also uses an account group, which is
designed to provide accountability for certain assets that are not recorded in those Funds.
The Borough has the following funds and account group:
Current Fund - This fund is used to account for the revenues and expenditures for governmental operations of a
general nature and the assets and liabilities related to such activities, including Federal and State grants not
accounted for in another fund.
Trust Funds - These funds are used to account for assets held by the government in a trustee capacity. Funds held by
the Borough as an agent for individuals, private organizations, or other governments are recorded in the Trust Funds.
Animal Control Trust Fund - This fund is used to account for fees collected from dog and cat licenses and
expenditures which are regulated by NJS 4: 19-15 .11.
Other Trust Fund - This fund is established to account for the assets and resources, which are held by the
Borough as a trustee or agent for individuals, private organizations, other governments and/or other funds.
These funds include dedicated fees/proceeds collected, developer deposits, payroll related deposits and
funds deposited with the Borough as collateral.
Unemployment Insurance Trust Fund - This fund is used to account for employee and employer
contributions for the purpose of providing unemployment benefits to former eligible employees.
Length o[Service Awards Program Fund (LOSAP)
This fund is established to account for the tax-deferred
income benefits to active volunteer members of emergency service organizations of the Borough.
General Capital Fund - This fund is used to account for the receipt and disbursement of funds used and related
financial transactions related to the acquisition or improvement of general capital facilities and other capital assets,
other than those acquired in the Current Fund.
General Fixed Assets Account Group - This account group is used to account for all general fixed assets of the
Borough. The Borough's infrastructure is not reported in the account group.
Comparative Data - Comparative data for the prior year has been presented in the accompanying financial statements
in order to provide an understanding of changes in the Borough's financial position and operations.
However,
comparative data have not been presented in all statements because their inclusion would make certain statements
unduly complex and difficult to understand.
20
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C.
Basis of Presentation-Financial Statements (Continued)
Reclassifications - Certain reclassifications may have been made to the December 31, 2023 balances to conform to the
December 31, 2024 presentation.
Financial Statements - Regulatory Basis
The GASB Codification also requires the financial statements of a governmental unit to be presented in the basic
financial statements in accordance with GAAP. The Borough presents the regulatory basis financial statements listed in
the table of contents which are required by the Division and which differ from the basic financial statements required by
GAAP. In addition, the Division requires the regulatory basis financial statements listed in the table of contents to be
referenced to the supplementary schedules. This practice differs from reporting requirements under GAAP.
D.
Measurement Focus and Basis of Accounting
The accounting and fmancial reporting treatment is determined by the accounting principles and practices prescribed by
the Division in accordance with the regulatory basis of accounting. Measurement focus indicates the type of resources
being measured. The basis of accounting indicates the timing of transactions or events for recognition in the financial
statements.
The Borough of North Arlington follows a modified accrual basis of accounting. Under this method of accounting,
revenues, except State/Federal Aid, are recognized when received and expenditures are recorded when incurred. The
accounting principles and practices prescribed or permitted for municipalities by the Division ("regulatory basis of
accounting") differ in certain respects from accounting principles generally accepted in the United States of America
(GAAP) applicable to local government units. The more significant differences are as follows:
Cash and Investments - Cash includes amounts in demand deposits as well as short-term investments with a maturity
date within three months of the date acquired by the government. Investments are reported at cost and are limited by
N.J.S.A. 40A:5-15.1 et seq. with the exception of LOSAP Trust Fund investments which are reported at fair value and
are limited by N.J.A.C. 5:30-14.19. GAAP requires that all investments be reported at fair value.
21
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D.
Measurement Focus and Basis of Accounting (Continued)
Property Tax Revenues/Receivables - Real property taxes are assessed locally, based upon the assessed value of the
property. The tax bill includes a levy for Municipal, County, and School purposes. The bills are mailed annually in
June for that calendar year's levy. Taxes are payable in four quarterly installments on February 1, May 1, August 1, and
November 1. The amounts of the first and second installments are determined as one-quarter of the total tax levied
against the property for the preceding year. The installment due the third and fourth quarters is determined by taking
the current year levy less the amount previously charged for the first and second installments, with the remainder being
divided equally. If unpaid on these dates, the amount due becomes delinquent and subject to interest at 8% per annum,
or 18% on any delinquency amount in excess of $1,500. A penalty ofup to 6% of the delinquency may be imposed on
a taxpayer with a delinquency in excess of $10,000 who fails to pay that delinquency prior to the end of the fiscal year
in which the charges become delinquent. The school levy is turned over to the Board of Education as expenditures are
incurred, and the balance, if any, must be transferred as of June 30, of each fiscal year. County taxes are paid quarterly
on February 15, May 15, August 15 and November 15, to the County by the Borough. When unpaid taxes or any
municipal lien, or part thereof, on real property, remains in arrears on April first in the year following the calendar year
levy when the same became in arrears, the collector in the municipality shall, subject to the provisions of the New
Jersey Statutes, enforce the lien by placing the property on a standard tax sale. The Borough also has the option when
unpaid taxes or any municipal lien, or part thereof, on real property remains in arrears on the 11th day of the eleventh
month in the fiscal year when the taxes or lien became in arrears, the collector in the municipality shall, subject to the
provisions of the New Jersey Statutes, enforce the lien by placing property on an accelerated tax sale, provided that the
sale is conducted and completed no earlier than in the last month of the fiscal year.
The Borough may institute annual
in rem tax foreclosure proceedings to enforce the tax collection or acquisition of title to the property. In accordance
with the accounting principles prescribed by the State of New Jersey, current and delinquent taxes are realized as
revenue when collected. Since delinquent taxes and liens are fully reserved, no provision has been made to estimate
that portion of the tax receivable and tax title liens that are uncollectible. GAAP requires property tax revenues to be
recognized in the accounting period when they become susceptible to accrual (i.e., when they are both levied and
available), reduced by an allowance for doubtful accounts.
Miscellaneous Revenues/Receivables - Miscellaneous revenues are recognized on a cash basis. Receivables for the
miscellaneous items that are susceptible to accrual are recorded with offsetting reserves on the balance sheet of the
Borough's Current Fund. GAAP requires such revenues to be recognized in the accounting period when they become
susceptible to accrual (i.e., when they are both measurable and available).
Grant and Similar Award Revenues/Receivables - Federal and State grants, entitlements or shared revenues received
for purposes normally financed through the Current Fund are recognized when anticipated in the Borough's budget.
GAAP requires such revenues to be recognized as soon as all eligibility requirements imposed by the grantor or
provider have been met.
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. Interfund receivables in the other
funds are not offset by reserves. GAAP does not require the establishment of an offsetting reserve for interfunds and,
therefore, does not recognize income in the year liquidated.
Prepaid Items - Certain payments reflect costs applicable to future accounting periods and are recorded as prepaid
items. Prepaid items in the current fund, except for prepaid debt service, are offset by a reserve, created by a charge to
operations. GAAP does not require the establishment of a reserve for prepaid items.
22
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D.
Measurement Focus and Basis of Accounting (Continued)
Deferred Charges - Certain expenditures, operating deficits and other items are required to be deferred to budgets of
succeeding years. GAAP requires expenditures, operating deficits and certain other items generally to be recognized
when incurred, if measurable.
Funded and unfunded debt authorizations for general capital projects are also recorded as deferred charges and
represent permanent long-term debt issues outstanding (funded) and temporary debt issues outstanding or unissued debt
authorizations (unfunded), respectively. GAAP does not permit the recording of deferred charges for funded and
unfunded debt authorizations.
Appropriation Reserves - Appropriation reserves are recorded as liabilities and are available, until lapsed at the close
of the succeeding year, to meet specific claims, commitments or contracts incurred during the preceding year. Lapsed
appropriation reserves are recorded as additions to income. Appropriation reserves do not exist under GAAP.
Expenditures - Expenditures are recorded on the "budgetary" basis of accounting.
Generally, expenditures are
recorded when an amount is encumbered for goods or services through the issuance of a purchase order in conjunction
with an encumbrance accounting system. Outstanding encumbrances at December 31, are reported as a cash liability in
the financial statements. Unexpended or uncommitted appropriations, at December 31, are reported as expenditures
through the establishment of appropriation reserves unless cancelled by the governing body.
GAAP requires
expenditures to be recognized in the accounting period in which the fund liability is incurred, if measurable, except for
unmatured interest on general long-term debt, as well as expenditures related to compensated absences and claims and
judgements, which are recognized when due.
Encumbrances - Contractual orders outstanding at December 31, are reported as expenditures and liabilities through
the establishment of an encumbrance payable. Encumbrances do not constitute expenditures or liabilities under GAAP.
Compensated Absences - Expenditures relating to obligations for unused vested accumulated vacation and sick leave
are not recorded until paid; however, municipalities may establish and budget reserve funds subject to NJSA 40A:4-39
for the future payment of compensated absences. GAAP requires that the amount that would normally be liquidated
with expendable available financial resources be recorded as an expenditure in the operating funds and the remaining
obligations are recorded as a long-term obligation in the government-wide financial statements.
Tax Appeals and Other Contingent Losses - Losses arising from tax appeals and other contingent losses are
recognized at the time a decision is rendered by an administrative or judicial body; however, municipalities may
establish reserves transferred from tax collections or by budget appropriation for future payments of tax appeal losses.
GAAP requires such amounts to be recorded when it is probable that a loss has been incurred and the amount of such
loss can be reasonably estimated.
Reserve for Uncollected Taxes - Reserve for Uncollected Taxes is a non-spending budget appropriation account
required to provide assurance that cash collected for property taxes levied in the current year will provide sufficient cash
flow to meet expected budgetary obligations.
The minimum amount required to be budgeted in Reserve for
Uncollected Taxes is determined utilizing the actual percentage of property taxes collected in the immediate preceding
budget year, unless allowable alternative methods are utilized with the approval of the Division. A Reserve for
Uncollected Taxes is not established or required under GAAP.
23
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D.
Measurement Focus and Basis of Accounting (Continued)
Pensions - The Borough appropriates in its annual budget the amount required to be paid for pension contributions as
determined by the State administered pension systems. Under the regulatory basis of accounting the Borough is only
required to disclose in the Notes to the Financial Statements it's share of the actuarially determined net pension
liabilities, deferred outflow of resources, deferred inflow of resources and pension expense (benefit) related to the State
administered pension system. GAAP requires these actuarially determined amounts to be reported in the government-
wide financial statements.
Other Post-Employment Benefits (OPEB) - The Borough funds its employer paid post-retirement medical benefits
on a pay-as-you-go basis. Under the regulatory basis of accounting the Borough is only required to disclose in the
Notes to the Financial Statements it's actuarially determined net OPEB liability, deferred outflow ofresources, deferred
inflow of resources and OPEB expense (benefit). GAAP requires these actuarially determined amounts to be reported
in proprietary funds and government-wide financial statements.
General Fixed Assets - In accordance with NJAC 5:30-5.6, Accounting for Governmental Fixed Assets, the Borough
of North Arlington has developed a fixed assets accounting and reporting system. Fixed assets are defined by the
Borough as assets with an initial, individual cost of $3,000 and an estimated useful life in excess of two years.
Fixed assets used in governmental operations (general fixed assets) are accounted for in the General Fixed Assets
Account Group. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than
buildings, such as roads, bridges, curbs and gutters, streets and sidewalks and sewerage and drainage systems are not
capitalized. General fixed assets acquired under capital financing agreements are capitalized at their acquisition cost.
Intangible right-to-use leased assets and intangible right-to-use IT software (SBITAs) are not capitalized.
General Fixed Assets purchased after December 31, 1986 are stated as cost. Donated fixed assets are recorded at
acquisition value at the date of donation.
General Fixed Assets purchased prior to December 31, 1986 are stated as follows:
Land and Buildings
Machinery and Equipment
No depreciation has been provided for in the financial statements.
Assessed Value
Replacement Cost
Expenditures for construction in progress are recorded in the General Capital Fund until such time as the construction is
completed and put into operation for general fixed assets.
GAAP requires that capital assets, including intangible right-to-use leased assets and intangible right-to-use IT software
(SBITAs), be recorded in proprietary-type funds as well as the government-wide financial statement at historical or
estimated historical cost if actual historical cost is not available. In addition, GAAP requires depreciation on capital
assets to be recorded in proprietary-type funds as well as in the government-wide financial statements.
Use of Estimates - The preparation of financial statements requires management of the Borough to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of accrued revenues and expenditures
during the reporting period. Accordingly, actual results could differ from those estimates.
24
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 2 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A.
Budgets and Budgetary Accounting - An annual budget is required to be adopted and integrated into the accounting
system to provide budgetary control over revenues and expenditures. Budget amounts presented in the accompanying
financial statements represent amounts adopted by the Borough and approved by the State Division of Local
Government Services as per N.J.S.A. 40A:4 et seq.
The Borough is not required to adopt budgets for the following funds:
Trust Funds
General Capital Fund
The Borough must prepare its budget in compliance with applicable laws. limiting or capping the amounts by which
both the budget appropriations and the municipal tax levy can increase in the annual budget.
1977 Appropriation "CAP": The 1977 Appropriation Cap is calculated using the formulas and provisions ofN.J.S.A
40A:4-45.l through 4-45.43a. The law was originally adopted in 1976 and was most recently amended in 2003. Under
this law, the Borough is permitted to increase its overall Current Fund appropriations (with certain exceptions) by 2.5%
or the "cost of living adjustment" (COLA), whichever is less. The COLA is calculated based on the Implicit Price
Deflator for Local Governments computed by the U.S. Department of Commerce. The Borough can, when the COLA
is less than or equal to 2.5%, increase its allowable inside-the-cap appropriations to 3 .5%, upon adoption of a COLA
Rate Ordinance by the governing body and beyond 3 .5% upon voter passage of a referendum. Additionally,
municipalities can bank the unused appropriation increases for use in any of the next two (2) succeeding budget years.
2010 Levy "CAP": The 2010 Levy Cap is calculated using the formulas and provisions of N.J.S.A. 40A:4-45.44
through 45 .4 7. It established limits on the increase in the total amount to be raised by taxation for municipal purposes
(municipal tax levy). The core of the levy cap formula is a 2% increase to the previous year's amount to be raised by
taxation for municipal purposes, exclusive of certain appropriations and allowable adjustments and extraordinary costs
related to a declared emergency. Voter approval may be requested to increase the municipal tax levy by more than the
allowable adjusted tax levy. Additionally, municipalities can bank the unused tax levy for use in any of the next three
(3) succeeding budget years.
The governing body is required to introduce and approve the annual budget no later than February 10, of the fiscal year.
The budget is required to be adopted no later than March 20, and prior to adoption must be certified by the Division of
Local Government Services, Department of Community Affairs, State of New Jersey. The Director of the Division of
Local Government Services, with the approval of the Local Finance Board may extend the introduction and approval
and adoption dates of the municipal budget. The budget is prepared by fund, function, activity and line item ( salary or
other expense) and includes information on the previous year. The legal level of control for appropriations is exercised
at the individual line item level for all operating budgets adopted. The governing body of the municipality may
authorize emergency appropriations and the inclusion of certain special items of revenue to the budget after its adoption
and determination of the tax rate. During the last two months of the fiscal year, the governing body may, by a 2/3 vote;
amend the budget through line item transfers. Management has no authority to amend the budget without the approval
of the governing body. Expenditures may not legally exceed budgeted appropriations at the line item level. During
2024 and 2023, the Borough Council increased the original budget by $49,500 and $2,334,255, respectively. In 2024,
the increase was funded by an emergency resolution for sink hole repairs. In 2023, the increases were funded by
additional aid allotted to the Borough as well as an emergency resolution for a Police Communication Center. In
addition, the governing body approved several budget transfers during 2024 and 2023.
25
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 3 CASH DEPOSITS AND INVESTMENTS
The Borough considers petty cash, change funds, cash in banks, certificates of deposit and deposits with the New Jersey
Cash Management Fund as cash and cash equivalents.
A.
Cash Deposits
The Borough's deposits are insured through either the Federal Deposit Insurance Corporation (FDIC), National Credit
Union Share Insurance Fund (NCUSIF), Securities Investor Protection Corporation (SIPC) or New Jersey's
Governmental Unit Deposit Protection Act (GUDP A). The Borough is required to deposit their funds in a depository
which is protecting such funds pursuant to GUDP A. The New Jersey Governmental Unit Deposit Protection Act
requires all banks doing business in the State of New Jersey to pledge collateral equal to at least 5% of the average
amount of its public deposits and 100% of the average amount of its public funds in excess of the lesser of 75% of its
capital funds or $200 million for deposits in excess of the FDIC or NCUSIF insured amounts. GUDPA does not protect
intermingled trust funds, bail funds, withholdings from an employee's salary or funds which may pass to the local
government upon the happening of a future condition.
Bank balances are insured up to $250,000 in the aggregate by the FDIC for each bank. NCUSIF insures credit union
accounts up to $250,000 in the aggregate for each financial institution. SIPC replaces cash claims up to a maximum of
$250,000 for each failed brokerage firm. At December 31, 2024 and 2023, the book value of the Borough's deposits
were $28,107,075 and $26,186,390 and bank and brokerage firm balances of the Borough's deposits amounted to
$28,192,957 and $26,459,427, respectively. The Borough's deposits which are displayed on the various fund balance
sheets as "cash and cash equivalents" are categorized as:
Depository Account
Insured
Unsured and Collateralized
$
$
Bank Balance
2024
2023
27,662,595
$
530,362
25,759,907
699,520
28,192,957
$
26,459,427
============
Custodial Credit Risk - Deposits - Custodial credit risk is the risk that in the event of a bank failure, the
government's deposits may not be returned to it. The Borough does not have a formal policy for custodial credit
risk. As of December 31, 2024 and 2023, the Borough's bank balances of $530,362 and $699,520 were exposed to
custodial credit risk as follows:
Bank Balance
Depository Account
2024
2023
Uninsured and Collateralized
Collateral held by Borough's Agent in the Borough's Name
$
530,362
$
699,520
==========
26
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 3 CASH DEPOSITS AND INVESTMENTS (Continued)
B.
Investments
The Borough is permitted to invest public funds in accordance with the types of securities authorized by N.J.S.A.
40A:5-l 5. l. Investments include bonds or other obligations of the United States or obligations guaranteed by the
United States of America, Government Money Market Mutual Funds, 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 obligations bear a fixed rate of interest not dependent on any
index or other external factor; bonds or other obligations of the Borough or bonds or other obligations of the school
districts which are a part of the Borough or school districts located within the Borough, Bonds or other obligations,
having a maturity date of not more than 397 days from the date of purchase, issued by New Jersey school district,
municipalities, counties, and entities subject to the "Local Authorities Fiscal Control Law, " (C.40A:5A-l et seq.);
Other bonds or obligations having a maturity date not more than 397 days from the date of purchase may be approved
by the Division of Local Government Services in the Department of Community Affairs for investment by local units;
Local Government investment pools, 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); and agreements for the repurchase of fully collateralized
securities, if transacted in accordance with NJSA 40A:5-15.l (8a-8e). In addition, the Borough is permitted to invest
LOSAP Funds with the types of eligible investments authorized in NJAC 5:30-14.19. LOSAP investments include
interest bearing accounts or securities, in which savings banks of New Jersey are authorized to invest their funds, New
Jersey Cash Management Fund, fixed and variable individual or group annuity contracts, mutual fund shares or fixed
and variable life insurance contracts.
As of December 31, 2024 and 2023, the Borough had the following investments:
Fair
Book
Value
Value
2024
Lincoln Financial LOSAP Retirement Fund (Unaudited)
$
3,580,664 $
3,580,664
Fair
Book
Value
Value
2023
Lincoln Financial LOSAP Retirement Fund (Unaudited)
$
3,205,364 $
3,205,364
Custodial Credit Risk - Investments - For an investment, this is the risk, that in the event of the failure of the
counterparty, the Borough will not be able to recover the value of its investments or collateral securities that are held
by an outside party. The Borough does not have a policy for custodial risk. As of December 31, 2024 and 2023,
$3,580,664 and $3,205,364 of the Borough's investments were exposed to custodial credit risk as follows:
27
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 3 CASH DEPOSITS AND INVESTMENTS (Continued)
B.
Investments {Continued}
Uninsured and Collateralized:
Collateral held by pledging financial institution's trust department but not in
the Borough's name (unaudited)
Uninsured and Collateralized:
Collateral held by pledging financial institution's trust department but not in
the Borough's name (unaudited)
Fair
Value
(LOSAP)
Book
Value
$ 3,580,664
$ 3,580,664
Fair
Value
(LOSAP)
Book
Value
$ 3,205,364 $ 3,205,364
Interest Rate Risk - Interest rate risk is the risk that changes in the market interest rate will adversely affect the fair
value of an investment. The Borough does not have a formal investment policy that limits investment maturities as
a means of managing its exposure to fair value losses arising from increasing interest rates.
Credit Risk - Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. State law limits investments as noted above (N.J.S.A. 40A:5-15.1 and N.J.A.C.5:30-
14.19). The Borough does not have an investment policy that would further limit its investment choices. As of
December 31, 2024 and 2023, the Borough's investment in Lincoln Financial Group was rated A2 by Moody's
Investor Services, and A- by Standard and Poor's, respectively.
Concentration of Credit Risk - The concentration of credit risk is the risk of loss that may be caused by the
Borough's investment in a single issuer. The Borough places no limit in the amount the Borough may invest in any
one issuer. More than five (5) percent of the Borough's investments are in Lincoln Financial Group. These
investments are 100% of the Borough's total investments.
Fair Value oflnvestments. The Borough of North Arlington measures and records its investments using fair value
measurement guidelines established by generally accepted accounting principles (GAAP). These guidelines recognize
a three-tiered fair value hierarchy as follows:
• Level 1: Quoted prices for identical investments in active markets;
• Level 2: Observable inputs other than those in Level 1; and
• Level 3: Unobservable inputs.
Investments are valued based on price data obtained from observed transactions and market price quotations provided
by Lincoln Financial Group. Since the value is not obtained from a quoted price in an active market the investments
held by the Borough at December 31, 2024 and 2023 are categorized as Level 2.
28
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 4 TAXES RECEIVABLE
Receivables at December 31, 2024 and 2023 consisted of the following:
Current Fund
Property Taxes
Tax Title Liens
$
$
631,626
$
59,713
2023
506,920
158,745
691,339
$
665,665
=======
In 2024 and 2023, the Borough collected $452,747 and $458,752 from delinquent taxes, which represented 69% and
75%, respectively of the prior year delinquent taxes receivable balance.
NOTE 5 DUE TO/FROM OTHER FUNDS
As of December 31, interfund receivables and payables that resulted from various interfund transactions were as
follows:
2024
2023
Due from
Due to
Due from
Due to
Other Funds
Other Funds
Other Funds
Other Funds
Current Fund
$
46,941
$
875,539
$
37,027
$
1,008,832
Trust Fund
Animal Contro 1
46,941
37,027
Other Trust
454,709
544,325
Unemployment
116,460
40,003
General Capital Fund
537,290
504,540
Total
$
1,038,940
$ 1,038,940
$
1,085,892
$
1,085,862
The above balances are the result of expenditures being paid by one fund on behalf of another and revenues received in
one fund but owed to another fund.
The Borough expects all interfund balances to be liquidated within one year.
29
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 6 DEFERRED CHARGES TO BE RAISED IN SUCCEEDING BUDGETS
Under the regulatory basis of accounting, certain expenditures are required to be deferred to budgets of succeeding
years. At December 31, the following deferred charges are reported on the balance sheets of the following funds:
Current Fund
Emergency Authorization - Sink Hole Repairs
2023
Current Fund
Emergency Authorization - Police
Comm um cation Equipment (1)
( 1)
Funded by a capital ordinance in 2024.
NOTE 7 FUND BALANCES APPROPRIATED
Balance,
December 31,
$ 49.500
$2,104.000
Subsequent Year
Budget
Appropriation
$ 49.500
Balance to
Succeeding
Budgets
Under the regulatory basis of accounting, fund balance in the Current Fund is comprised of cash surplus (fund balance)
and non-cash surplus (fund balance). All or part of cash surplus as of December 31 may be anticipated in the
subsequent year's budget. The non-cash surplus portion of fund balance may be utilized in the subsequent year's
budget with the prior written consent of the Director of the Division of Local Government Services if certain guidelines
are met as to its availability. Fund balances at December 31, which were appropriated and included as anticipated
revenue in the budget for the succeeding year were as follows:
2024
2023
Fund
Utilized
Fund
Utilized
Balance
in Subsequent
Balance
in Subsequent
December 31,
Year's Budget
December 31,
Year's Budget
Current Fund
Cash Surplus
$
6,698,065
$
4,300,000
$
5,363,993
$
4,277,766
Non-Cash Surplus
550,620
2,630,236
$
7,248,685
$
4,300,000
$
7,994,229
$
4,277,766
30
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 8 FIXED ASSETS
A. General Fixed Assets
The following is a summary of changes in the general fixed assets account group for the years ended December 31,
2024 and 2023.
2024
Land and Improvements
Buildings and Building Improvements
Machinery and Equipment
2023
Land and Improvements
Buildings and Building Improvements
Machinery and Equipment
31
Balance
January 1,
2024
$ 9,361,901
9,118,309
9,668,223
$ 28,148,433
Balance
January 1,
2023
$ 8,475,959
8,906,646
9,453,721
$ 26,836,326
Balance,
December 31,
Increases
Decreases
2024
$ 9,361,901
$
250,965
9,369,274
194,387
9,862,610
$
445,352
$
$ 28,593,785
Balance,
December 31,
Increases
Decreases
2023
$
885,942
$ 9,361,901
211,663
9,118,309
214,502
9,668,223
$1,312,107
$
$ 28,148,433
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 9 MUNICIPAL DEBT
The Local Bond Law (N.J.S.A. 40A:2 et. seq.) governs the issuance of bonds and notes used to finance capital
expenditures. General obligation bonds have been issued for general capital fund projects and acquisitions or other
purposes permitted by the Local Bond Law. All bonds are retired in serial installments within the statutory period of
usefulness. 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 and acquisitions or other
purposes permitted by the Local Bond Law must be paid off within ten years and four months or retired by the issuance
ofbonds.
The Borough's debt is summarized as follows:
Issued
General
Bonds and Notes
Less Funds Temporarily Held to Pay Bonds
and Notes
Net Debt Issued
Authorized But Not Issued
General
Bonds and Notes
Net Bonds and Notes Issued and Authorized
But Not Issued
$
$
32
11,144,000
$
10,658,000
1,301,103
354,950
9,842,897
10,303,050
1,351,118
2,706,912
11,194,015
$
13,009,962
===================
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 9 MUNICIPAL DEBT (Continued)
Statutory Net Debt
The statement of debt condition that follows is in the format of the Borough's Annual Debt Statement and indicates a
statutory net debt of 0.437% and 0.547% at December 31, 2024 and 2023, respectively.
Gross Debt
Deductions
Net Debt
2024
General Debt
$
12,495,118
$
1,301,103
$
11,194,015
School Debt
1,098,000
1,098,000
Total
$
13,593,118
$
2,399,103
$
11,194,015
Gross Debt
Deductions
Net Debt
2023
General Debt
$
13,364,912
$
354,950
$
13,009,962
School Debt
1,373,000
1,373,000
Total
$
14,737,912
$
1,727,950
$
13,009,962
Statutory Borrowing Power
The Borough's remaining borrowing power under N.J.S. 40A:2-6, as amended, at December 31, was as follows:
3-1/2% of Equalized Valuation Basis (Municipal)
Net Debt
Remaining Borrowing Power
$
$
33
91,066,655
$
11,194,015
2023
84,870,224
13,009,962
79,872,640
$
71,860,262
==============
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 9 MUNICIPAL DEBT (Continued)
A.
Long-Term Debt
The Borough's long-term debt consisted of the following at December 31:
General Obligation Bonds
The Borough levies ad valorem taxes to pay debt service on general obligation bonds. General obligation bonds
outstanding at December 31 are as follows:
$2,800,000, 2010 General Improvement Encap Bonds, due in
annual installments of $200,000 through
December 15, 2024, interest at 4.00% to 4.25%
$7,634,000, 2013 General Improvement Bonds, due in annual
installments of $609,000 to $650,000 through
August 15, 2027, interest at 3.00% to 3.375%
$7,105,000, 2018 General Improvement Bonds, due in annual
installments of $1,000,000 to $1,255,000 through
October 1, 2025, interest at 2.500% to 2.625%
$
$
$
200,000
1,859,000
2,509,000
1,255,000
2,280,000
3,114,000
$
4,989,000
==========
The Borough's principal and interest for long-term debt issued and outstanding as ofDecember 31, 2024 is as follows:
Calendar
Year
2025
$
2026
2027
Total
$
General Bonds
Principal
Interest
1,880,000
$
92,560
625,000
40,866
609,000
20,554
3,114,000
$
153,980
Total
$
1,972,560
665,866
629,554
$
3,267,980
34
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 9 MUNICIPAL DEBT (Continued)
A.
Long-Term Debt
Changes in Long-Term Municipal Debt
The Borough's long-term capital debt activity for the years ended December 31, 2024 and 2023 were as follows:
2024
General Capital Fund
Bonds Payable
General Capital Fund Long-Term
Liabilities
2023
General Capital Fund
Bonds Payable
General Capital Fund Long-Term
Liabilities
Balance,
December 31,
2023
Additions
$ 4,989,000 _$ ---
$ 4,989,000
$
Balance,
December 31,
====
2022
Additions
$ 6,839,000
$ ----
$ 6,839,000
$ ====
35
Balance,
December 31,
Reductions
2024
Due
Within
One Year
$ 1,875,000
$ 3,114,000
$ 1,880,000
$ 1,875,000
$ 3,114,000
$ 1,880,000
Balance,
December 31,
Reductions
2023
Due
Within
One Year
$ 1,850,000
$ 4,989,000
$ 1,875,000
$ 1,850,000
$ 4,989,000
$ 1,875,000
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 9 MUNICIPAL DEBT (Continued)
B.
Short-Term Debt
The Borough's short-term debt activity for the years ended December 31, 2024 and 2023 was as follows:
Bond Anticipation Notes
Balance
Balance,
Rate
Maturity
December 31,
Renewed/
Retired/
December 31,
Purpose
rill
Date
2023
Issued
Redeemed
2024
2024
Various Improvements and Acquisitions
4.50%
8/2/2024
$
19,000
$
19,000
Various Improvements and Acquisitions
4.50%
8/1/2025
$
914,750
$
914,750
4.50%
8/2/2024
1,614,750
1,614,750
Various Interior Renovations
4.50%
8/1/2025
550,000
550,000
4.50%
8/2/2024
800,000
800,000
Acquisition of a New Pumper Fire Engine
4.50%
8/1/2025
200,000
200,000
4.50%
8/2/2024
350,000
350,000
Acquisition of New Automotive Vehicles
4.50%
8/2/2024
71,251
71,251
Various Interior Renovations
4.50%
8/2/2024
67,000
67,000
Various Acquisitions
4.50%
8/1/2025
369,000
369,000
4.50%
8/2/2024
469,000
469,000
Various Interior Renovations
4.50%
8/1/2025
674,950
674,950
4.50%
8/2/2024
779,749
779,749
Various Public Improvements and Acquisitions
4.50%
8/1/2025
349,200
349,200
4.50%
8/2/2024
399,200
399,200
Fisher Field Playground and Park Improvements
4.50%
8/1/2025
1,049,100
1,049,100
4.50%
8/2/2024
1,099,050
1,099,050
Various Public Improvements and Acquisitions
4.50%
8/1/2025
2,000,000
2,000,000
Acquisition & Install Police Communication Sys
4.50%
8/1/2025
1,923,000
1,923,000
$
5,669,000
$
8,030,000
$
5,669,000 $
8,030,000
36
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 9 MUNICIPAL DEBT (Continued)
B.
Short-Term Debt {Continued}
Bond Anticipation Notes {Continued}
Balance
Balance,
Rate
Maturity
December 31,
Renewed/
Retired/
December 31,
Purpose
00
Date
2022
Issued
Redeemed
2023
2023
Various Improvements and Acquisitions
4.50%
8/2/2024
$
19,000
$
19,000
4.50%
8/8/2023
$
636,000
$
636,000
Various Improvements and Acquisitions
4.50%
8/2/2024
1,614,750
1,614,750
4.50%
8/8/2023
2,300,000
2,300,000
Various Interior Renovations
4.50%
8/2/2024
800,000
800,000
4.50%
8/8/2023
900,000
900,000
Acquisition of a New Pumper Fire Engine
4.50%
8/2/2024
350,000
350,000
4.50%
8/8/2023
400,000
400,000
Acquisition of New Automotive Vehicles
4.50%
8/2/2024
71,251
71,251
4.50%
8/8/2023
121,251
121,251
Various Interior Renovations
4.50%
8/2/2024
67,000
67,000
4.50%
8/8/2023
117,000
117,000
Various Acquisitions
4.50%
8/2/2024
469,000
469,000
4.50%
8/8/2023
519,000
519,000
Various Interior Renovations
4.50%
8/2/2024
779,749
779,749
4.50%
8/8/2023
879,749
879,749
Various Public Improvements and Acquisitions
4.50%
8/2/2024
399,200
399,200
Fisher Field Playground and Park Improvements
4.50%
8/2/2024
1,099,050
1,099,050
$
5,873,000 $
5,669,000 $
5,873,000 $
5,669,000
The purpose of these short-term borrowings was to provide resources for capital construction, acquisitions or
improvement projects and other purposes permitted by the Local Bond Law NJSA 40A:2 et. seq. The amounts issued
for governmental activities are accounted for in the General Capital Fund.
State law requires that notes are to be 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. All bond anticipation 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 following
the date of the original notes. In addition any note renewed beyond the third anniversary date of the original note,
requires one legally payable installment to be paid.
37
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 10 CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS
As of December 31, the Borough had the following commitments with respect to unfinished capital projects:
Capital Project
Installation of Police Communication System
Seagrave Fire Apparatus
Installation of Police Communication System
2023 Road Program
NOTE 11 OTHER LONG-TERM LIABILITIES
A.
Compensated Absences
Construction
Commitment
$1,998,260
880,000
$1,998,260
754,291
Estimated
Date of
Completion
2025
2025
2025
2024
Under the existing policies and labor agreements of the Borough, employees are allowed to accumulate (with certain
restrictions) unused sick leave over the life of their working careers and to redeem such unused leave time in cash ( with
certain limitations) upon death, retirement or by extended absence immediately preceding retirement.
It is estimated that the current cost of such unpaid compensation and salary related payments would approximate
$2,379,145 and $2,359,030 at December 31, 2024 and 2023, respectively. These amounts which is are considered
material to the financial statements, are not reported either as an expenditure or liability.
As of December 31, 2024 and 2023, the Borough has reserved in the Other Trust Fund $1,439,824 and $1,439,824,
respectively, to fund compensated absences in accordance with NJSA 40A:4-39.
38
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 11 OTHER LONG-TERM LIABILITIES (Continued)
Changes in Other Long-Term Liabilities
(1)
Under the regulatory basis of accounting, certain other long-term liabilities which may be considered material to the
financial statements are not reported either as an expenditure or a liability. However, under the regulatory basis of
accounting, these other long-term liabilities and related information are required to be disclosed in the notes to the
financial statements in conformity with the disclosure requirements of the Governmental Accounting Standards Board.
The Borough's changes in other long-term liabilities for the years ended December 31, 2024 and 2023 were as follows:
Balance,
Balance,
Due
December 31,
December 31,
Within
2023
Additions
Reductions
2024
One Year
2024
Compensated Absences
$ 2,359,030
$
20,115
$ 2,379,145
Net OPEB Liability (1)
23,359,630
23,359,630
Net Pension Liability - PERS (1)
5,126,497
5,126,497
Net Pension Liability - PFRS ( 1)
10,673,205
10,673,205
Other Long-Term Liabilities
$41,518,362
$
20,115
$
$41,538,477
$
GASB Statement Numbers 68 Pension and 75 OPEB financial information was not provided by the State's Division of
Pensions and Benefits as of the date of audit.
Balance,
Balance,
Due
December 31,
December 31,
Within
2022
Additions
Reductions
2023
One Year
2023
Compensated Absences
$ 2,064,343
$
294,687
$ 2,359,030
Net OPEB Liability
21,734,449
2,817,265
$
1,192,084
23,359,630
Net Pension Liability - PERS
5,295,759
273,256
442,518
5,126,497
Net Pension Liability - PFRS
12,015,435
22,983
1,365,213
10,673,205
Other Long-Term Liabilities
$41,109,986
$ 3,408,191
$
2,999,815
$41,518,362
$
39
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE12EMPLOYEERETIREMENTSYSTEMS
The State of New Jersey sponsors and administers the following contributory defined benefit public employee
retirement systems (retirement systems) covering substantially all state and local government employees which
includes those Borough employees who are eligible for pension coverage.
Police and Firemen's Retirement System (PFRS) - established in July 1944, under the provisions of N.J.S.A.
43: 16A to provide coverage to substantially all full time county and municipal police or firemen and State firemen
appointed after December 31, 1944. Membership is mandatory for such employees. PFRS is a cost-sharing multi-
employer defined benefit pension plan with a special funding situation. For additional information about PFRS,
please refer to the State Division of Pension and Benefits (Division's) Annual Comprehensive Financial Report
(ACFR) which can be found at www.state.nj.us/treasury/pensions.
The vesting and benefit provisions are set by N.J.S.A. 43: 16A. PFRS provides retirement benefits as well as death and
disa?ility benefits. All benefits vest after ten years of service, except disability benefits which vest after four years of
service.
The following represents the membership tiers for PFRS:
Tier
1
2
3
Definition
Members who were enrolled prior to May 22, 2010
Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011
Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits are available at age 55 and are generally determined to be 2% of final compensation for
each year of creditable service, as defined, up to 30 years plus 1 % for each year of service in excess of 30 years.
Members may seek special retirement after achieving 25 years of creditable service, in which benefits would equal
65% (tier 1 and 2 members) and 60% (tier 3 members) of final compensation plus 1 % for each year of creditable
service over 25 years, but not to exceed 30 years. Members may elect deferred retirement benefits after achieving
ten ):ears of service, in which case, benefits would begin at age 55 equal to 2% of final compensation for each year of
service.
Public Employees' Retirement System (PERS) - established in January 1955, under the provisions of N.J.S.A.
43:15A to provide coverage, to substantially all full-time employees of the State or any county, municipality, school
district, or public agency provided the employee is not a member of another State-administered retirement system.
Membership is mandatory for such employees. PERS is a cost-sharing multi-employer defined benefit pension plan.
For additional information about PERS, please refer to the State Division of Pension and Benefits (Division's)
Annual Comprehensive Financial Report (ACFR) which can be found at www.state.nj.us/treasury/pensions.
The vesting and benefit provisions are set by N.J.S.A. 43:15A. PERS provides retirement, death, and disability
benefits. All benefits vest after ten years of service.
The following represents the membership tiers for PERS:
Tier
1
2
3
4
5
Definition
Members who were enrolled prior to July 1, 2007
Members who were eligible to enroll on or after July 1, 2007 and prior to November 2, 2008
Members who were eligible to enroll on or after November 2, 2008 and prior to May 22, 2010
Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011
Members who were eligible to enroll on or after June 28, 2011
40
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Public Employees' Retirement System (PERS) (Continued)
Service retirement benefits of 1155th of final average salary for each year of service credit is available to tier 1 and 2
members upon reaching age 60 and to tier 3 members upon reaching age 62. Service retirement benefits of 1160th of
final average salary for each year of service credit is available to tier 4 members upon reaching age 62 and tier 5
members upon reaching age 65. Early retirement benefits are available to tier 1 and 2 members before reaching age
60, tier 3 and 4 members with 25 or more years of service credit before age 62, and tier 5 members with 30 or more
years of service credit before age 65. Benefits are reduced by a fraction of a percent for each month that a member
retires prior to the age at which member can receive full early retirement benefits in accordance with their respective
tier. Tier 1 members can receive an unreduced benefit from age 55 to age 60 if they have a least 25 years of service.
Deferred retirement is available to members who have at least ten years of service credit and have not reached the
service retirement age for the respective tier.
The State of New Jersey sponsors and administers the following defined contribution public employee retirement
program covering certain state and local government employees which include those Borough employees who are
eligible for pension coverage.
Defined Contribution Retirement Program (DCRP) - established under the provisions of Chapter 92, P .L. 2007
and Chapter 103, P.L. 2008 to provide coverage to elected and certain appointed officials, effective July 1, 2007 and
employees enrolled in PERS on or after July 1, 2007 who earn in excess of established annual maximum
compensation limits ( equivalent to annual maximum wage for social security deductions).
This provision was
extended by Chapter 1, P.L. 2010, effective May 21, 2010, to new employees (Tier 2) of the PFRS and new
employees who would otherwise be eligible to participate in PERS on or after November 2, 2008 and do not earn the
minimum salary required for tier 3 enrollment or do not work the minimum required hours for tier 4 and tier
5enrollment but earn a base salary of at least $5,000 are eligible for participation in the DCRP. Membership is
mandatory for such individuals with vesting occurring after one (1) year of membership. DCRP is a defined
contribution pension plan.
Other Pension Funds
The state established and administers a Supplemental Annuity Collective Trust Fund (SACT) which is available to
active members of the State-administered retirement systems to purchase annuities to supplement the guaranteed
benefits provided by their retirement system. The state or local governmental employers do not appropriate funds to
SACT.
The cost of living increase for PFRS and PERS are funded directly by each of the respective systems, but are
currently suspended as a result of reform legislation.
·
According to state law, all obligations of each retirement system will be assumed by the State of New Jersey should
any retirement system be terminated.
The State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, issues publicly available
financial reports that include the financial statements and required supplementary information of each of the above
systems, funds, and trust. The financial reports may be accessed via the New Jersey, Division of Pensions and
Benefits website at www.state.nj.us/treasury/pensions.
41
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Measurement Focus and Basis of Accounting
The financial statements of the retirement systems are prepared in accordance with U.S. generally accepted accounting
principles as applicable to governmental organizations. In doing so, the Division adheres to reporting requirements
established by the Governmental Accounting Standards Board (GASB).
The accrual basis of accounting is used for measuring financial position and changes in net position of the pension trust
funds. Under this method, contributions are recorded in the accounting period in which they are legally due from the
employer or plan member, and deductions are recorded at the time the liabilities are due and payable in accordance with
the terms of each plan. The accounts of the Division are organized and operated on the basis of funds. All funds are
accounted for using an economic resources measurement focus.
Investment Valuation
The Division oflnvestment, Department of the Treasury, State of New Jersey (Division oflnvestment) manages and
invests certain assets of the retirement systems.
Empower (formerly Prudential Retirement) is the third-party
administrator for the DCRP and provides record keeping, administrative services and investment options.
Investment transactions are accounted for on a trade or investment date basis. Interest and dividend income is
recorded on the accrual basis, with dividends accruing on the ex-dividend date. The net increase or decrease in the
fair value of investments includes the net realized and unrealized gains or losses on investments.
The State of New Jersey, Department of the Treasury, Division of Investment, issues publicly available financial
reports that include the financial statements of the State of New Jersey Cash Management Fund. The financial report
may be obtained by writing to the State of New Jersey, Department of the Treasury, Division oflnvestment, P.O.
Box 290, Trenton, New Jersey 08625-0290, or at www.state.nj/treasury/doinvest.
Collective Net Pension Liability
The collective net pension liability of the participating employers for local PERS at June 30, 2024 was not available
and for June 30, 2023 is $14.6 billion, and the plan fiduciary net position as a percentage of the total pension liability
is 65.22% at June 30, 2023. The collective net pension liability of the participating employers for local PFRS at June
30, 2024 was not available and for June 30, 2023 is $13.1 billion and the plan fiduciary net position as a percentage
of total pension liability is 70.16% at June 30, 2023.
The total pension liabilities were determined based on actuarial valuations as of July 1, 2022 which were rolled
forward to June 30, 2023.
Actuarial Methods and Assumptions
In the July 1, 2022 PERS and PFRS actuarial valuations, the actuarial assumptions and methods used in these
valuations were described in the Actuarial Assumptions and Methods section of the Actuary's report and are included
here in this note to the financial statements. The pension systems selected economic and demographic assumptions and
prescribed them for use for purposes of compliance with GASB Statement No. 68. The Actuary provided guidance
with respect to these assumptions, and it is their belief that the assumptions represent reasonable expectations of
anticipated plan experience.
42
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Employer and Employee Pension Contributions
The contribution policy is set by laws of the State of New Jersey and contributions are required by active members
and participating employers. Plan members and employer contributions may be amended by State of New Jersey
legislation, with the amount of contributions by the State of New Jersey contingent upon the annual Appropriations
Act. As defined, the various retirement systems require employee contributions for 2024 and 2023 based on 10.0%
for PFRS, 7.50% for PERS and 5.50% for DCRP of employee's annual compensation.
For the years ended December 31, 2024 and 2023 for PFRS and PERS, which are cost sharing multi-employer
defined benefit pension plans, employers' contributions are based on an actuarially determined amount, which
includes the normal cost and unfunded accrued liability. In the DCRP, which is a defined contribution plan, member
contributions are matched by a 3% employer contribution. All contributions made by the Borough for 2024, 2023
and 2022 were equal to the required contributions.
During the years ended December 31, 2024, 2023 and 2023, the Borough, was required to contribute for normal cost
pension contributions, accrued liability pension contributions and non-contributory life insurance premiums the
following amounts which equaled the required contributions for each respective year:
Year Ended
December 31
PFRS
PERS (1)
DCRP
2024
$
1,285,950
$
473,042
$
4,561
2023
1,365,213
442,518
915
2022
1,143,970
441,903
751
For the years ended December 31, 2024, 2023 and 2022 the Borough was not required to contribute for long-term
disability insurance premiums (LTDI) for PERS.
(1)
Includes the Library portion of the bill.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
The regulatory basis of accounting requires participating employers in PERS and PFRS to disclose in accordance with
GASB Statement No. 68, Accounting and Financial Reporting for Pensions, (GASE No. 68) their proportionate share of
the collective net pension liability, collective deferred outflows of resources, collective deferred inflows of
resources and collective pension expense excluding that attributable to employer-paid member contributions.
Under GASB Statement No. 68 local governmental employers are required to provide certain financial information
based on a measurement date no earlier than the end of the employer's prior fiscal year. The GASB No. 68 financial
information from the State's Division of Pensions and Benefits to be reported for the year ended December 31, 2023 for
the measurement date of June 30, 2024 was not available as of the date of audit. Accordingly, the State's Division of
Local Government Services issued Local Finance Notice 2023-10 which authorized and permits New Jersey
municipalities to present the most recent available audited GASB No. 68 financial information to be incorporated into
the audit and remain in compliance with the regulatory basis of accounting disclosure requirements for notes to the
financial statements. As such the GASB No. 68 financial information for the year ended December 31, 2024 is not
presented in the notes to the financial statements.
43
BOROUGH OF NORTH ARLINGTON
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
The employer allocation percentages presented are based on the ratio of the contributions made as an individual
employer toward the actuarially determined contribution amount to total contributions to the plan during the fiscal years
ended June 30, 2023 and 2022. Employer allocation percentages have been rounded for presentation purposes.
Public Employees Retirement System (PERS)
At December 31, 2023, the Borough reported a liability of $5,126,497, for its proportionate share of the PERS net
pension liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of July 1, 2022. The Borough's
proportionate share of the net pension liability was based on the ratio of the Borough's contributions to the pension plan
relative to the total contributions of all participating governmental entities during the measurement period. As of the
measurement date of June 30, 2023, the Borough's proportionate share was 0.03539 percent, which was an increase of
0.00030 from its proportionate share measured as of June 30, 2022 of0.03509 percent.
Public Employees Retirement System (PERS) (Continued)
For the years ended December 31, 2023, the pension system has determined the Borough's pension expense to be
$72,869, for PERS based on the actuarial valuations which is less than the actual contributions reported in the
Borough's financial statements of$442,518. At December 31, 2023, the Borough's deferred outflows ofresources and
deferred inflows of resources related to PERS pension which are not reported on the Borough's financial statements are
from the following sources:
Difference 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
Total
$
$
44
Deferred
Outflows
of Resources
49,016
11,262
23,608
374,827
458,713
2023
$
$
Deferred
Inflows
of Resources
20,955
310,688
307,901
639,544
BOROUGH OF NORTH ARLINGTON
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Public Employees Retirement System (PERS) (Continued)
At December 31, 2023 the amounts reported as deferred outflows of resources and deferred inflows of resources related
to PERS pension will be recognized in pension expense/(benefit) as follows:
Year
Ending
December 31,
Total
2024
$
(198,263)
2025
(45,264)
2026
96,244
2027
(38,180)
2028
4,632
Thereafter
$
(180,831)
Actuarial Assumptions
The Borough's total pension liability reported for the year ended December 31, 2023 was based on the June 30, 2023
measurement date as determined by an actuarial valuation as of July 1, 2022, which was rolled forward to June 30,
2023. This actuarial valuation used the following actuarial assumptions, applied to all periods in the measurement date:
Inflation Rate:
Price
Wage
Salary Increases:
Rate for All Future Years
Investment Rate of Return
2.75%
3.25%
2.75 - 6.55%
Based on Years
of Service
7.00%
The actuarial assumptions used in the July 1, 2022 valuation were based on the results of an actuarial experience study
for the period July 1, 2018 to June 30, 2021.
Mortality Rates
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
generational basis. Mortality improvement is based on Scale MP-2021.
45
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Public Employees Retirement System (PERS) (Continued)
Long-Term Expected Rate of Return
In accordance with State statute, the long-term expected rate of return on plan investments (7% at June 30, 2023) 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 actuaries. The long-term expected rate of return on pension plan
investments was determined using a building-block method in which best-estimate ranges of expected future real rate of
return ( expected returns, net of pension plans investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic real rates of return for each major asset class included in the pension plans' target asset allocation as of June
30, 2023, as reported for the year ended December 31, 2023, are summarized in the following table:
Asset Class
Risk Mitigation Strategies
Cash Equivalents
U.S. Treasuries
Investment Grade Credit
US Equity
Non-US Developed Markets Equity
International Small Cap Equity
Emerging Markets Equity
High Yield
Real Assets
Private Credit
Real Estate
Private Equity
Discount Rate
Target
Allocation
3.00%
2.00%
4.00%
7.00%
28.00%
12.75%
1.25%
5.50%
4.50%
3.00%
8.00%
8.00%
13.00%
2023
Long-Term
Expected Real
Rate of Return
6.21%
3.31%
3.31%
5.19%
8.98%
9.22%
9.22%
11.13%
6.97%
8.40%
9.20%
8.58%
12.50%
The discount rate used to measure the total pension liability for PERS was 7.00% as of June 30, 2023. 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 100% 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 in determining the total
pension liability.
46
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Public Employees Retirement System (PERS) (Continued)
Sensitivity of Net Pension Liability
The following presents the Borough's proportionate share of the PERS net pension liability as of December 31, 2023
calculated using the discount rate of7.00%, as well as what the Borough's proportionate share of the PERS net pension
liability would be if it were calculated using a discount rate that is I-percentage-point lower 6.00% or 1-percentage-
point higher 8.00% than the current rate:
1%
Current
1%
Decrease
Discount Rate
Increase
2023
(6.00%)
(7.00%)
(8.00%)
Borough's Proportionate Share of
the PERS Net Pension Liability
$
6,673,608
$
5,126,497
$
3,809,701
The sensitivity analysis was based on the proportionate share of the Borough's net pension liability at December 31,
2023. A sensitivity analysis specific to the Borough's net pension liability was not provided by the pension system.
Pension Plan Fiduciary Net Position
Detailed information about the PERS pension plan's fiduciary net position is available in the separately issued financial
report from the State of New Jersey, Department of the Treasury, Division of Pension and Benefits. The financial
report
may
be
accessed
via
the
New
Jersey,
Division
of Pensions
and
Benefits,
website
at
www.state.nj.us/treasury/pensi ons.
Police and Firemen's Retirement System (PFRS)
At December 31, 2023, the Borough reported a liability of $10,673,205, for its proportionate share of the PFRS net
pension liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of July 1, 2023. The Borough's
proportionate share of the net pension liability was based on the ratio of the Borough's contributions to the pension plan
relative to the total contributions of all participating governmental entities during the measurement period. As of the
measurement date of June 30, 2023, the Borough's proportionate share was 0.09660 percent, which was a decrease of
0.00837 from its proportionate share measured as of June 30, 2022 of 0.10497 percent.
47
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Police and Firemen's Retirement System (PFRS) (Continued)
For the years ended December 31, 2023, the pension system has determined the Borough pension expense to be
$560,905 for PFRS based on the actuarial valuations which are less than the actual contributions reported in the
Borough's financial statements of $1,365,213. At December 31, 2023, the Borough's deferred outflows of resources
and deferred inflows of resources related to PFRS pension which are not reported on the Borough's financial statements
are from the following sources:
2023
Deferred
Deferred
Outflows
Inflows
of Resources
of Resources
Difference Between Expected and
Actual Experience
$
457,005
$
509,017
Changes of Assumptions
23,037
720,697
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments
543,566
Changes in Proportion and Differences Between
Borough Contributions and Proportionate Share
of Contributions
994,537
1,151,492
Total
$
2,018,145
$
2,381,206
At December 31, 2023 the amounts reported as deferred outflows of resources and deferred inflows of resources related
to PFRS pension will be recognized in pension expense/(benefit) as follows:
Year
Ending
December 3 1,
Total
2024
(499,232)
2025
(286,892)
2026
626,534
2027
(90,031)
2028
(93,058)
Thereafter
(20,382)
$
(363,061)
48
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Actuarial Assumptions
The Borough's total pension liability reported for the year ended December 31, 2023 was based on the June 30, 2023
measurement date as determined by an actuarial valuation as of July 1, 2022, which was rolled forward to June 30,
2023. This actuarial valuation used the following actuarial assumptions, applied to all periods in the measurement date:
Inflation Rate:
Price
Wage
Salary Increases
Rate for All Future Years
Investment Rate of Return
2023
2.75%
3.25%
3.25%-16.25%
Based on Years
of Service
7.00%
The actuarial assumptions used in the July 1, 2022 valuation were based on the results of an actuarial experience study
for the period July 1, 2018 to June 30, 2021.
Mortality Rates
Employee mortality rates were based on the PubS-2010 amount-weighted mortality table with a 105.6% adjustment for
males and 102.5% adjustment for females. For healthy annuitants, mortality rates were based on the PubS-2010
amount-weighted mortality table with a 96.7% adjustment for males and 96.0% adjustment for females. Disability rates
were based on the PubS-2010 amount-weighted mortality table with a 152.0% adjustment for males and 109.3%
adjustment for females. Mortality improvement is based on Scale MP-2021.
49
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Police and Firemen's Retirement System (PFRS) (Continued)
Long-Term Expected Rate of Return
In accordance with State statute, the long-term expected rate of return on plan investments (7% at June 30, 2023) 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 actuaries. The long-term expected rate of return on pension plan
investments was determined using a building-block method in which best-estimate ranges of expected future real rate of
return (expected returns, net of pension plans investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic real rates of return for each major asset class included in the pension plans' target asset allocation as of June
30, 2023, as reported for the year ended December 31, 2023, are summarized in the following table:
Asset Class
Risk Mitigation Strategies
Cash Equivalents
U.S. Treasuries
Investment Grade Credit
US Equity
Non-US Developed Markets Equity
International Small Cap Equity
Emerging Markets Equity
High Yield
Real Assets
Private Credit
Real Estate
Private Equity
Discount Rate
Target
Allocation
3.00%
2.00%
4.00%
7.00%
28.00%
12.75%
1.25%
5.50%
4.50%
3.00%
8.00%
8.00%
13.00%
2023
Long-Term
Expected Real
Rate of Return
6.21%
3.31%
3.31%
5.19%
8.98%
9.22%
9.22%
11.13%
6.97%
8.40%
9.20%
8.58%
12.50%
The discount rate used to measure the total pension liability for PFRS was 7.00% as of June 30, 2023. The projection of
cash flows used to determine the discount rate assumed that contributions from plan members will be made at the
current member contribution rates and that contributions from employers will be based on 100% of the actuarially
determined contributions for the State. 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 in determining the total pension
liability.
50
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Police and Firemen's Retirement System (PFRS) (Continued)
Sensitivity of Net Pension Liability
The following presents the Borough's proportionate share of the PFRS net pension liability as of December 31, 2023
calculated using the discount rate of 7.00%, as well as what the Borough's proportionate share of the PFRS net pension
liability would be if it were calculated using a discount rate that is I-percentage-point lower 6.00% or 1-percentage-
point higher 8.00% than the current rate:
1%
Current
1%
Decrease
Discount Rate
Increase
2023
(6.00%)
(7.00%)
(8.00%)
Borough's Proportionate Share of
the PFRS Net Pension Liability
$
14,871,242
$
10,673,205
$
7,177,243
The sensitivity analysis was based on the proportionate share of the Borough's net pension liability at December 31,
2023. A sensitivity analysis specific to the Borough's net pension liability was not provided by the pension system.
Special Funding Situation - PFRS
Under N.J.S.A. 43:16A-15, the Borough is responsible for their own PFRS contributions based on actuarially
determined amounts, except where legislation was passed which legally obligated the State to make contributions if
certain circumstances occurred. The legislation which legally obligates the State is as follows: Chapter 8, P.L. 2000,
Chapter 318, P .L. 2001, Chapter 86, P .L. 2001, Chapter 511, P .L. 1991, Chapter 109, P .L. 1979, Chapter 24 7, P .L. 1993
and Chapter 201, P .L. 2001. The amounts contributed on behalf of the Borough by the State 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. Accordingly, the Borough's proportionate share percentage of the net pension
liability, deferred outflows and inflows determined under GASB Statement No. 68 is zero percent and the State's
proportionate share is 100% for PFRS under this legislation.
At December 31, 2023, the State's proportionate share of the net pension liability attributable to the Borough for the
PFRS special funding situation is $1,966,662. For the years ended December 31, 2023, the pension system has
determined the State's proportionate share of the pension expense attributable to the Borough for the PFRS special
funding situation is $223,704, which is less than the actual contributions the State made on behalf of the Borough of
$224,910. At December 31, 2023 (measurement date June 30, 2023) the State's share of the PFRS net pension liability
attributable to the Borough was 0.09660 percent, which was a decrease of 0.00837 from its proportionate share
measured as of December 31, 2022 (measurement date June 30, 2022) of 0.10497 percent. The State's proportionate
share attributable to the Borough was developed based on actual contributions made to PFRS allocated to employers
based upon covered payroll.
These on-behalf contributions have not been reported on the Borough's financial
statements.
51
BOROUGH OF NORTH ARLINGTON
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Police and Firemen's Retirement System (PFRS) (Continued)
Pension Plan Fiduciary Net Position
Detailed information about the PFRS pension plan's fiduciary net position is available in the separately issued financial
report from the State of New Jersey, Department of the Treasury, Division of Pension and Benefits. The financial
reports
may
be
accessed
via
the
New
Jersey,
Division
of Pensions
and
Benefits,
website
at
www.state.nj.us/treasury/pensions.
NOTE 13 POST-RETIREMENT MEDICAL BENEFITS
The State of New Jersey sponsors and administers the post-retirement health benefit program plan for participating
municipalities including the Borough.
Plan Description and Benefits Provided
The State of New Jersey sponsors and administers the following post-retirement health benefit program covering
substantially all eligible local government employees from local participating employers.
State Health Benefit Program Fund-Local Government Retired (the Plan) (including Prescription Drug Program
Fund) - The Plan is a cost-sharing multiple-employer defined benefit other postemployment benefit (OPEB) plan with
a special funding situation. It covers employees of local government employers that have adopted a resolution to
participate in the Plan. For additional information about the Plan, please refer to the State of New Jersey (the State),
Division of Pensions and Benefits' (the Division) Annual Comprehensive Financial Report (ACFR), which can be
found at https://www.state.nj.us/treasury/pensions/financial-reports.shtml.
The Plan provides medical and prescription drug to retirees and their covered dependents of the participating employers.
Under the provisions of Chapter 88, P.L. 1974 and Chapter 48, P.L. 1999, local government employers electing to
provide postretirement medical coverage to their employees must file a resolution with the Division. Under Chapter 88,
local employers elect to provide benefit coverage based on the eligibility rules and regulations promulgated by the State
Health Benefits Commission. Chapter 48 allows local employers to establish their own age and service eligibility for
employer paid health benefits coverage for retired employees. Under Chapter 48, the employer may assume the cost of
postretirement medical coverage for employees and their dependents who: 1) retired on a disability pension; or 2)
retires 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)
retires and reached age 62 with at least 15 years of service with the employer. Further, the law provides that the
employer paid obligations for retiree coverage may be determined by means of a collective negotiations agreement.
In accordance with Chapter 330, P.L. 1997, which is codified in N.J.S.A. 52:14-17.32i, the State provides medical and
prescription coverage to local police officers and firefighters, who retire with 25 years of service or on a disability from
an employer who does not provide postretirement medical coverage. Local employers were required to file a resolution
with the Division in order for their employees to qualify for State-paid retiree health benefits coverage under Chapter
330. The State also provides funding for retiree health benefits to survivors of local police officers and firefighters who
die in the line of duty under Chapter 271, P.L. 1989.
52
BOROUGH OF NORTH ARLINGTON
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 13 POST-RETIREMENT MEDICAL BENEFITS (Continued)
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 coverage.
The State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, issues publicly available
financial reports that include the financial statements and required supplementary information of the above Fund. The
financial reports may be assessed via, the New Jersey, Division of Pensions and Benefits website at
www.state.nj.us/treasury/pensions.
Plan Membership and Contributing Employers
Membership and contributing employers/nonemployers of the defined benefit OPEB plan consisted of the following at
June 30, 2023:
Active Plan Members
Inactive Plan Members or Beneficiaries Currently Receiving Benefits
Total
Contributing Employers
Contributing Nonemployers
Measurement Focus and Basis of Accounting
65,613
34,771
100,384
574
1
The financial statements of the OPEB plan are prepared in accordance with U.S. generally accepted accounting
principles as applicable to government organizations. In doing so, the Division adheres to reporting requirements
established by the Governmental Accounting Standards Board (GASB).
The accrual basis of accounting is used for measuring financial position and changes in net position of the other
postemployment benefit plan. Under this method, contributions are recorded in the accounting period in which they are
legally due from the employer or plan member, and deductions are recorded at the time the liabilities are due and
payable in accordance with the terms of each plan. The accounts of the Division are organized and operated on the
basis of funds. All funds are accounted for using an economic resources measurement focus.
Collective Net OPEB Liability
The collective net OPEB liability of the participating employers and the State, as the non-employer contributing entity,
of the Plan at June 30, 2024 was not available and for June 30, 2023 is $15.0 billion, and the plan fiduciary net (deficit)
as a percentage of the total OPEB liability is (0.79)% at June 30, 2023.
The total OPEB liabilities were determined based on actuarial valuations as of July 1, 2022 which was rolled forward to
June 30, 2023.
53
BOROUGH OF NORTH ARLINGTON
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 13 POST-RETIREMENT MEDICAL BENEFITS (Continued)
Actuarial Methods and Assumptions
In the July 1, 2022 OPEB actuarial valuations, the actuarial assumptions and methods used in this valuations were
described in the Actuarial Assumptions and Methods section of the Actuary's report and are included here in this note
to the financial statements. The Plan selected economic and demographic assumptions and prescribed them for use for
purposes of compliance with GASB Statement No. 75.
The Actuary provided guidance with respect to these
assumptions, and it is their belief that the assumptions represent reasonable expectations of anticipated plan experience.
Post-Retirement Medical Benefits Contribution
The funding policy for the OPEB plan is pay-as-you-go; therefore, there is no prefunding of the liability. However, due
to premium rates being set prior to each calendar year, there is a minimal amount of net position available to cover
benefits in future years. Contributions to pay for the health benefit premiums of participating employees in the OPEB
plan are collected from the State of New Jersey, participating local employers, and retired members. The State of New
Jersey makes contributions to cover those employees eligible under Chapter 330, P.L. 1967, as disclosed previously.
Local employers remit employer contributions on a monthly basis.
Retired member contributions are generally
received on a monthly basis.
The employers participating in the OPEB plan made contributions of $431.4 million and the State of New Jersey, as the
non-employer contributing entity, contributed $55.6 million for fiscal year 2023.
The State sets the employer contribution rate based on a pay-as-you-go basis rather than the actuarial determined
contribution an amount actuarially determined in accordance with the parameters of GASB Statement No. 75. The
actuarial determined contribution represents a level of funding that, if paid on an ongoing basis, is projected to cover
normal cost each year and any unfunded actuarial liabilities (or funding excess) of the plan using a systematic and
rational method over a closed period equal to the average of the expected remaining service lives of all employees that
are provided with OPEB through the Plan. The Borough's contributions to the State Health Benefits Program Fund-
Local Government Retired Plan for post-retirement benefits for the years ended December 31, 2024, 2023 and 2022
were $1,288,948, $1,192,084 and $1,119,753, respectively, which equaled the required contributions for each year. In
addition, the Borough's reimbursements to eligible retired employees for Medicare Part B insurance coverage for the
years ended December 31, 2024, 2023 and 2022 were $13,456, $5,460 and $26,640, respectively.
OPEB Liabilities, OPEB Expenses and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
The regulatory basis of accounting requires participating employers in the State Health Benefit Program Fund- Local
Government Retired Plan to disclose in accordance with GASB Statement No. 75, Accounting and Financial Reporting
for Postemployment Benefits other than Pension (GASE No. 75) their proportionate share of the collective net OPEB
liability, collective deferred outflows of resources, collective deferred inflows of resources and collective OPEB
expense excluding that attributable to retiree-paid member contributions.
Under GASB Statement No. 75 local governmental employers are required to provide certain financial information
based on a measurement date no earlier than the end of the employer's prior fiscal year. The GASB No. 75 financial
information from the State's Division of Pensions and Benefits to be reported for the year ended December 31, 2024 for
the measurement date of June 30, 2024 was not available as of the date of audit. Accordingly, the State's Division of
Local Government Services issued Local Finance Notice 2023-10 which authorizes and permits New Jersey
municipalities to present the most recent available audited GASB No. 75 financial information to be incorporated into
the audit and remain in compliance with the regulatory basis of accounting disclosure requirements for notes to the
financial statements. As such the GASB No. 75 financial information for the year ended December 31, 2024 is not
presented in the notes to the financial statements.
54
BOROUGH OF NORTH ARLINGTON
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 13 POST-RETIREMENT MEDICAL BENEFITS (Continued)
The employer allocation percentages presented are based on the ratio of the contributions made as an individual
employer toward the actuarially determined contribution amount to total contributions to the plan during the fiscal years
ended June 30, 2023 and 2022. Employer allocation percentages have been rounded for presentation purposes.
At December 31, 2023, the Borough reported a liability of $23,359,630, for its proportionate share of the net OPEB
liability. The net OPEB liability was measured as of June 30, 2023, and the total OPEB liability used to calculate the
net OPEB liability was determined by an actuarial valuation as of July 1, 2022. The Borough's proportionate share of
the net OPEB liability was based on the ratio of the Borough's proportionate share of the OPEB liability attributable to
the Borough at June 30, 2023 to the total OPEB liability for the State Health Benefit Program Fund - Local
Government Retired Plan at June 30, 2023. As of the measurement date of June 30, 2023 the Borough's proportionate
share was 0.15567 percent, which was an increase of 0.02109 from its proportionate share measured as of June 30, 2022
of 0.13458 percent.
For the years ended December 31, 2023, the Plan has determined the Borough's OPEB (benefit) to be $(283,465),
based on the actuarial valuations which is less than the actual contributions reported in the Borough's financial
statements of $1,192,084. At December 31, 2023, the Borough's deferred outflows of resources and deferred inflows
of resources related to the OPEB plan which are not reported on the Borough's financial statements are from the
following sources:
2023
Deferred
Deferred
Outflows
Inflows
of Resources
of Resources
Difference Between Expected and
Actual Experience
$
1,077,226
$
6,343,712
Changes of Assumptions
3,025,948
6,603,019
Net Difference Between Projected and Actual
Earnings on OPEB Plan Investments
3,854
Changes in Proportion and Differences Between
Borough Contributions and Proportionate Share
of Contributions
5,889,246
891,236
Total
$
9,992,420
$
13,841,821
55
BOROUGH OF NORTH ARLINGTON
NOTES TO THE FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 13 POST-RETIREMENT MEDICAL BENEFITS (Continued)
At December 31, 2023 the amounts reported as deferred outflows of resources and deferred inflows of resources related
to the OPEB plan will be recognized in OPEB expense/(benefit) as follows:
Year
Ending
December 31,
Total
2024
$
(1,925,852)
2025
(1,173,890)
2026
(369,589)
2027
192,700
2028
(419,801)
Thereafter
(152,969)
$
(3,849,401)
Actuarial Assumptions
The Borough's total OPEB liability reported for the year ended December 31, 2023 was based on the June 30, 2023
measurement date as determined by an actuarial valuation as of July 1, 2022, which was rolled forward to June 30,
2023. The actuarial assumptions vary for each plan member depending on the pension plan the member is enrolled in.
This actuarial valuation used the following actuarial assumptions, applied to all periods in the measurement date:
Inflation Rate
Salary Increases*
PERS:
Rate For All Future Years
PFRS:
Rate For All Future Years
2.50%
2.75% to 6.55%
Based on Years of Service
3.25% to 16.25%
Based on Years of Service
* Salary increases are based on years of service within the respective pension plan.
The actuarial assumptions used in the July 1, 2022 valuation were based on the results of the PFRS and PERS
experience studies prepared for July 1, 2018 to June 30, 2021.
100% of active members are considered to participate in the plan upon retirement.
Mortality Rates
Pre-retirement and post-retirement mortality rates were based on the Pub-2010 Healthy "Safety" for PFRS and Healthy
"General" for PERS classification headcount-weighted mortality table with fully generational mortality improvement
projections from the central year using Scale MP-2021. Disability mortality rates were based on the Pub-2010 Disabled
"Safety" for PFRS and Disabled "General" for PERS classification headcount-weighted mortality table with fully
generational mortality improvement projections from the central year using Scale MP-2021.
56
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 13 POST-RETIREMENT MEDICAL BENEFITS (Continued)
Health Care Trends
The trend rate for pre-Medicare medical benefits is initially 6.50% and decreases to a 4.50% long-term trend rate after 9
years. For post-65 medical benefits PPO, the trend is, increasing to 14.80% in Fiscal Year 2026 and decreasing to
4.50% in Fiscal Year 2033. For HMO the trend is increasing to 17.40% in Fiscal Year 2026 and decreasing to 4.50% in
Fiscal Year 2033. For prescription drug benefits, the initial trend rate is 9.50% and decreases to a 4.50% long-term
trend rate after 7 years. For the Medicare Part B reimbursement, the trend rate is 5.00%.
Discount Rate
The discount rate for June 30, 2023 measurement date was 3.65%. 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 ofretum 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 Net OPEB Liability to Changes in the Discounts Rate
The following presents the Borough's proportionate share of the net OPEB liability as of December 31, 2023 calculated
using the discount rate of 3.65% as well as what the Borough's proportionate share of the net OPEB liability would be
if it were calculated using a discount rate that is I-percentage-point lower 2.65% or I-percentage-point higher 4.65%
than the current rate:
1%
Current
1%
Decrease
Discount Rate
Increase
2023
2.65%
3.65%
4.65%
Borough's Proportionate Share of
the Net OPEB Liability
$
27,057,897
$
23,359,630
$
20,384,944
The sensitivity analysis was based on the proportionate share of the Borough's net OPEB liability at December 31,
2023. A sensitivity analysis specific to the Borough's net OPEB liability was not provided by the Plan.
Sensitivity of Net OPEB Liability to Changes in the Healthcare Trend Rate
The following presents the Borough's proportionate share of the net OPEB liability as of December 31, 2023 calculated
using the healthcare trend rates as disclosed above as well as what the Borough's proportionate share of the net OPEB
liability would be if it were calculated using healthcare trend rates that are I -percentage-point lower or 1-percentage-
point higher than the current rate:
Borough's Proportionate Share of
the Net OPEB Liability
$
1%
Decrease
19,852,937
Healthcare Cost
Trend Rates
$
23,359,630
$
1%
Increase
27,849,269
The sensitivity analysis was based on the proportionate share of the Borough's net OPEB liability at December 31,
2023. A sensitivity analysis specific to the Borough's net OPEB liability was not provided by the pension system.
57
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 13 POST-RETIREMENT MEDICAL BENEFITS (Continued)
OPEB Plan Fiduciary Net Position
Detailed information about the OPEB plan's fiduciary net position is available in the separately issued financial report
from the State of New Jersey, Department of the Treasury, Division of Pension and Benefits. The financial reports may
be accessed via the New Jersey, Division of Pensions and Benefits, website at www.state.nj.us/treasury/pensions.
NOTE 14 RISK MANAGEMENT
The Borough is exposed to various risks of loss related to general liability, automobile coverage, theft of, damage to and
destruction of assets; errors and omissions; injuries to employees; termination of employees and natural disasters. The
Borough has obtained commercial insurance coverage to guard against these events to minimize the exposure to the
Borough should they occur.
The Borough of North Arlington is a member of the South Bergen Municipal Joint Insurance Fund (SBJIF) and
Municipal Excess Liability Joint Insurance Fund (MEL). The joint insurance funds are both an insured and self-
administered group of municipalities established for the purpose of insuring against property damage, general liability,
motor vehicles and equipment liability and worker's compensation. The Funds are risk-sharing public entity pools. The
SBilF and MEL coverage amounts are on file with the Borough.
The relationship between the Borough and respective insurance funds is governed by a contract and by-laws that have
been adopted by resolution of each unit's governing body. The Borough is contractually obligated to make all annual
and supplementary contributions to the insurance funds, to report claims on a timely basis, to cooperate with the
management of the funds, its claims administrator and attorneys in claims investigation and settlement, and to follow
risk management procedures as outlined by the funds. Members have a contractual obligation to fund any deficit of the
funds attributable to a membership year during which the municipality was a member.
The funds provide its members with risk management services, including the defense of and settlement of claims, and
established reasonable and necessary loss reduction and prevention procedures to be followed by the members.
Complete financial statements of the funds can be obtained by contacting the respective fund's Treasurer.
There has been no significant reduction in insurance coverage from the previous year nor have there been any
settlements in excess of insurance coverage in any of the prior three years.
The Borough has elected to fund its New Jersey Unemployment Compensation Insurance under the "Benefit
Reimbursement Method". Under this plan the Borough is required to reimburse the New Jersey Unemployment Trust
Fund for benefits paid to its former employees and charged to its account with the State. The Borough is billed
quarterly for amounts due to the State. The following is a summary of Borough contributions, employee contributions,
reimbursements to the State for benefits paid and the ending balance of the Borough's unemployment compensation
trust fund for the current and previous two years:
Year Ended
December 31
2024
2023
2022
Borough
Contributions
$
45,000
Employee
Contributions
$
8,740
$
13,400
11,749
Amount
Ending
Reimbursed
Balance
76,427
(1) $
165,554
25,663
(1)
220,646
17,869
(1)
221,256
(1) Due to delays in processing unemployment claims by the State ofNew Jersey, claims may exist and be owed by the
Borough which are not reported.
58
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL ST A TEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 15 CONTINGENT LIABILITIES
The Borough is a party defendant in some lawsuits, none of a kind unusual for a municipality of its size and scope of
operation. In the opinion of the Borough's Attorney, the potential claims against the Borough not covered by insurance
policies would not materially affect the financial condition of the Borough.
Pending Tax Appeals - Various tax appeal cases were pending in the New Jersey Tax Court at December 31, 2024 and
2023. Amounts claimed have not yet been determined. The Borough is vigorously defending its assessments in each
case. Under the accounting principles prescribed by the Division of Local Government Services, Department of
community Affairs, State of New Jersey, the Borough does not recognize a liability, if any, until these cases have been
adjudicated. The Borough expects such amounts, if any, could be material.
As of December 31, 2024 and 2023, the
Borough has reserved $1,929,974 and $1,956,126, respectively, in the Current Fund for tax appeals pending in the New
Jersey Tax Court. Funding of any ultimate liability would be provided for in succeeding years' budget or from fund
balance.
Federal and State Awards - The Borough participates in a number of federal and state programs that are fully or
partially funded by grants received from other governmental units. Expenditures financed by grants are subject to audit
by the appropriate grantor government. If expenditures are disallowed due to noncompliance with grant program
regulations, the Borough may be required to reimburse the grantor government. As of December 31, 2024 and 2023
significant amounts of grant expenditure have not been audited by the various grantor agencies but the Borough
believes that disallowed expenditures, if any, based on subsequent audits will not have a material effect on the overall
financial position of the Borough.
NOTE 16 FEDERAL ARBITRAGE REGULATIONS
The Borough is subject to Section 148 of the Internal Revenue Code as it pertains to the arbitrage rebate on all tax-
exempt obligations, both long and short-term debt. Under the 1986 Tax Reform Act, the Internal Revenue Service
(IRS) required that all excess earnings from investment proceeds be rebated to the IRS. Arbitrage, for purposes of these
regulations, is defined as the difference between the yield on the investment and the yield on the obligations issued. If
there are excess earnings, this amount may be required to be rebated to the IRS. At December 31, 2024 and 2023, the
Borough has not estimated its estimated arbitrage earnings due to the IRS, if any.
NOTE 17 LENGTH OF SERVICE A WARD PROGRAM (LOSAP)-UNAUDITED
The Borough of North Arlington Length of Service Award Program (the Plan) was created by a Borough ordinance
adopted on July 10, 2000 pursuant to 457 ( e )(11 )(13) of the Internal Service Code of 1986, as amended, except for
provisions added by reason of the Length of Service A ward Program as enacted into federal law in 1997. The voters
of the Borough of North Arlington approved the adoption of the Plan at the general election held on November 17,
2000.
The first year of eligibility for entrance into the Plan was calendar year 2001. The tax deferred income benefits for
emergency services volunteers, consisting of the Volunteer Fire Department and the First Aid Organization, come
from contributions made solely by the Borough on behalf of those volunteers who meet the criteria of a plan created
by the governing body.
If an active member meets the year of active service requirement, a LOSAP must provide a benefit between the
minimum contribution of $100 and a maximum contribution of $1,150 per year. While the maximum amount is
established by statute, it is subject to periodic increases that are related to the consumer price index (N.J.S.A.
40A:14-185(f). The Division of Local Government Services issues the permitted maximum increase annually.
The Borough of North Arlington has approved a contribution amount of $1,900 and $1,850 for 2024 and 2023,
respectively, for each eligible volunteer fire department member into the Plan. The Borough also contributed $1,900
and $1,850 for both 2024 and 2023, respectively for each eligible volunteer first aid squad members into the Plan.
The total Borough contributions were $105,925 and $88,600 for 2024 and 2023, respectively.
59
BOROUGH OF NORTH ARLINGTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2024 AND 2023
NOTE 17 LENGIB OF SERVICE AW ARD PROGRAM (LOSAP)-UNAUDITED (Continued)
In accordance with the amendments to Section 457 of the Internal Revenue Code and the State Deferred Revenue
Regulations, the Borough has placed the amounts deferred, including earnings, in a trust for the exclusive benefit of
the plan participants and their beneficiaries.
Lincoln Financial Group is the administrator of the plan. The Borough's practical involvement in administering the
plan is essentially limited to verifying the eligibility of each participant and remitting the funds to the plan
administrator.
Vesting and Benefits
A volunteer is eligible to receive a distribution of funds upon completing 5 (five) cumulative years as an active
member of the volunteer organization.
Certain restrictions and tax implications may result in the event of a
withdrawal of funds from the Plan.
If a volunteer member does not vest and terminates their association with the emergency service organization, the
funds are returned to the sponsoring agency's surplus.
Reporting Requirements
The New Jersey Administrative Code NJAC 5 :30-14.49 requires that the Borough perform a separate review report of
the plan in accordance with the American Institute of Certified Public Accountants (AICP A) Statements on Standards
for Accounting and Auditing Review Services. Since a review does not constitute an audit, the financial statements
pertaining to the Plan are presented as unaudited in this report as part of the Borough's Trust Fund.
NOTE 19 SUBSEQUENT EVENTS
Bond Anticipation Notes
The Borough issued bond anticipation notes in the amount of $7,478,000 to temporarily finance expenditures related to
various improvements. The bond anticipation notes were issued at an interest rate of 3.75%. These notes dated July 30,
2025 will mature on July 30, 2026.
Debt Authorized
On July 10, 2025 the Borough adopted a bond ordinance authorizing the issuance of $2,683,000 in bonds or bond a
anticipation notes to fund various capital improvements and acquisition of equipment.
On July 10, 2025 the Borough introduced a bond ordinance authorizing the issuance of $1,467,000 in bonds or bond
anticipation notes to fund the acquisition of property.
60
CURRENT FUND
BOROUGH OF NORTH ARLINGTON
STATEMENT OF CASH - COLLECTOR/TREASURER
Balance, December 31, 2023
Increased by Receipts:
Revenue Accounts Receivable
Miscellaneous Revenue Not Anticipated
Due from State of NJ Senior Citizens' and Veterans Deductions
Taxes Receivable
Fees Payable
Prepaid Taxes
Tax Overpayments
Reserve for Federal and State Grants - Unappropriated
Grant Receipts
General Capital Fund Receipts Deposited in Current Fund
Other Trust Receipts Deposited in Current Fund
Receipts From General Capital Fund
Decreased by Disbursements:
2024 Budget Appropriations
2023 Appropriation Reserves
Tax Overpayments
County Taxes Payable
Local District School Taxes
Reserve for Federal and State Grants - Appropriated
Encumbrances Payable - Grants
Fees Payable
Reserve for Tax Appeals
Accounts Payable
Prepaid Payroll
Payments to Other Trust Fund
Balance, December 31, 2024
61
$
5,084,669
557,714
48,960
56,325,106
22,999
335,628
46,685
315,638
19,899
32,750
348,375
515,738
25,639,489
1,006,607
129,686
5,948,640
30,884,196
192,327
43,843
20,785
26,152
280,176
425,251
504,292
EXHIBIT A-4
$ 15,716,093
63,654,161
79,370,254
65,101,444
$ 14,268,810
Office
Tax Collector
BOROUGH OF NORTH ARLINGTON
STATEMENT OF CHANGE FUNDS
$
Balance,
December 31,
2023
200
EXHIBIT A-5
Balance,
December 31,
2024
$
200
$
200
$
200
STATEMENT OF AMOUNT DUE FROM STATE OF NEW JERSEY -
SENIOR CITIZENS' AND VETERANS' DEDUCTIONS
Balance, December 31, 2023
Increased by:
Senior Citizen and Veterans Deductions per Tax Billing
$
52,000
Senior Citizen and Veterans Deductions Allowed per Tax Collector Prior Year
250
Decreased by:
Received in Cash from State ofNew Jersey
48,960
Senior Citizen and Veterans Deductions Disallowed per Tax Collector PY
4,500
Balance, December 31, 2024
62
=====
EXHIBIT A-6
$
42,327
52,250
53,460
$
41,117
EXHIBIT A-7
BOROUGH OF NORTH ARLINGTON
STATEMENT OF GRANTS RECEIVABLE
Balance,
Balance,
December 31,
Cash
December 31,
2023
Receipts
Cancelled
2024
Municipal Alliance
$
10,000
$
10,000
Bullet Proof Vest Partnership
9,847
9,847
Assistance to Firefighters
9,463
9,463
Fire Department Saver Grant
74,437
74,437
Bergen County Open Space - Daniel Morris and
Columbus Park Improvements
19,250
19,250
Body Worn Camera Grant
8,152
8,152
Municipal Alliance on Alcohol and Drug Abuse
4,507
$
4,007
500
CARES Act Grant Fire Dept
19,899 $
19,899
Municipal Alliance
State Share
4,507
4,507
Bergen County Open Space Grant-
Fischer Field
69,668
69,668
Child, Centennial Park
43,604
43,604
BC CDBG Beech & Argyle STS Tree Planting
17,115
17,115
River Road Redevelopment Project Parcel
188,840
188,840
DMHAS Youth Leadership Grant
4,620
4,620
$
483,909
$
19,899 $
4,007
$
460,003
Appropriated Grant Reserves
$
4,007
63
EXHIBIT A-8
BOROUGH OF NORTH ARLINGTON
STATEMENT OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY
Senior
Senior
Citizens' and
Citizens' and
Transferred
Balance,
Added/
Veterans
Veterans'
to Tax
Balance,
December 31,
2024
Omitted
Deductions
Collected In
Deductions
Title
December 31,
Year
2023
Lm
Taxes
Disallowed
2023
2024
Allowed
Cancelled
Liens
2024
2016
$
19
$
19
2017
17
17
2018
17
17
2019
18
18
2020
17
17
2021
16
16
2022
49,709
$
9,103
$
40,590
16
2022
457,107
$
4,500
443,644
$
250
17,699
14
506,920
4,500
452,747
250
58,289
134
2023
$ 56,773,710
$
20,534
$
184,841
55,872,359
52,000
$
37,525
$
16,027
631,492
-
$
506,920
$_ 56,773,710
$_
20!534
$
4,500
$
184,841
$
56,325,106
$
__ 52,250
$
95,814
$
16,027
$
631,626
Analysis of2024 Tax Levy
Tax Yield
General Purpose Tax
$
56,773,710
Added Taxes (54:4-63.1 et seq.)
20,534
$
56,794,244
Tax Levy
Local District School Tax (Abstract)
$
30,884,196
County Taxes (Abstract)
5,692,782
County Open Space
255,858
Due County for Added Taxes(54:4-63. l et seq.)
2,166
$
36,835,002
Local Tax for Municipal Purposes (Abstract)
19,056,974
Minimum Library Tax
877,533
Additional Tax Levied
24,735
$
19,959,242
$
56,794,244
64
BOROUGH OF NORTH ARLINGTON
STATEMENT OF TAX TITLE LIENS
Balance, December 31, 2023
Increased by:
Transfers from Current Taxes Receivable
Interest and Cost on Tax Sale
Decreased by:
Cancelled
Balance, December 31, 2024
BOROUGH OF NORTH ARLINGTON
STATEMENT OF REVENUE ACCOUNTS RECEIVABLE
Balance,
December 31,
Accrued
2023
in 2023
Borough Clerk
Alcoholic Beverage Licenses
$
55,564
Licenses - Other
1,270
Fees and Permits
19,425
Board of Health
Licenses - Other
12,639
Fees and Permits
13,317
Police
Fees and Permits
27,621
Recreation
Fees and Permits
1,590
Parking Meters
47,011
Construction Code Official
Fees and Permits
373,483
Interest on Investments and Deposits
1,061,215
Interest and Costs on Taxes
101,532
Municipal Court
Fines and Costs
$
27,930
339,774
Cable TV Franchise Fees
173,835
New Jersey Meadowlands Commission
Tax SharingN.J.S.A. 13:17-74
1,290,776
Energy Receipts Tax
1,082,618
Uniform Fire Safety Act
32,406
Library Insurance Reimbursement
42,000
Passaic Valley Sewer Commission - Fire Hydrants
36,500
Third Party Billing-Emergency Medical Services
378,567
$
27,930
$
5,091,143
65
EXI-IlBIT A-9
$
158,745
$
16,027
130
16,157
115,189
$
59,713
EXI-IlBIT A-10
Balance,
December 31,
Collected
2024
$
55,564
1,270
19,425
12,639
13,317
27,621
1,590
47,011
373,483
1,061,215
101,532
333,300 $
34,404
173,835
1,290,776
1,082,618
32,406
42,000
36,500
378,567
$
5,084,669
$
34,404
EXHIBIT A-11
Page 1
BOROUGH OF NORTH ARLINGTON
STATEMENT OF 2023 APPROPRIATION RESERVES
Balance,
Encumbrances
Budget
December 31,
Payable
After
Balance
2023
Restored
Transfers
Modification
Cancelled
Expended
Lapsed
Salaries and Wages
Administration & Executive
$
7,947
$
(5,000)
2,947
$
2,947
Borough Council
3,137
3,137
3,137
Elections
3,800
3,800
3,800
Financial Administration
12,487
12,487
12,487
Collection of Taxes
5,180
5,180
5,180
Assessment of Taxes
4,349
4,349
4,349
Planning Board
3,000
3,000
$
2,333
667
Zoning Commission
5,600
$
2,000
7,600
2,000
5,600
Rent Leveling Board
5,200
5,200
5,200
Construction Code Officials
4,884
4,884
4,884
Police Department
67,821
(15,000)
52,821
52,821
Police- Dispatch 911
15,928
(5,000)
10,928
10,928
Emergency Medical Transportation
5,133
5,133
5,133
Office of Emergency Management
4,949
4,949
4,949
Fire Official
5,565
5,565
5,565
Municipal Prosecutor
800
1,800
2,600
1,050
1,550
Crossing Guards
12,217
12,217
12,217
Streets & Roads - Repair & Maintenance
2,318
2,318
2,318
Streets & Roads - Snow Removal
50,000
(25,000)
25,000
25,000
Board of Health
24,280
24,280
24,280
Recreation
262
262
262
Senior Citizens Services
21,234
(15,000)
6,234
6,234
Youth Center
15,681
15,681
15,681
Salary Negotiations and Costs
43,000
43,000
43,000
Municipal Court
555
555
555
Public Defender
19,540
19,540
19,540
Other Expenses
Administration & Executive
2,570
10,339
10,000
22,909
12,982
9,927
Financial Administration
90,154
12,532
102,686
102,636
50
Collection of Taxes
245
12,366
12,611
11,279
1,332
Reassessment
9,601
6,777
16,378
11,476
4,902
Legal Services and Costs
46,792
1,881
48,673
18,280
30,393
Engineering Services and Costs
51,410
51,410
12,486
38,924
Elections
5,683
5,683
5,683
Planning Board
31,796
96
31,892
192
31,700
Zoning Commission
12,000
12,000
12,000
Construction Code Official
21,431
77
21,508
2,752
18,756
Police Department
I 03,789
33,498
137,287
72,525
64,762
Office of Emergency Management
9,151
9,151
9,151
Fire Official
6,212
175
6,387
120
6,267
Fire Department
25,405
23,335
48,740
39,723
9,017
Volunteer Emergency Squad (First Aid Orgi
6,415
19,007
5,000
30,422
23,602
6,820
Streets & Roads - Repair & Maintenance
10,917
7,776
10,000
28,693
27,464
1,229
Streets & Roads - Snow Removal
81,316
9,418
90,734
4,037
86,697
66
EXHIBIT A-11
Page 2
BOROUGH OF NORTH ARLINGTON
STATEMENT OF 2023 APPROPRIATION RESERVES
Balance,
Encumbrances
Budget
December 31,
Payable
After
Balance
2023
Cancelled
Transfers
Modification
Cancelled
Expended
Lapsed
Other Expenses (Continued)
Shade Tree
$
1,135
$
13,050
14,185
$
13,050
$
1,135
Sanitation
60,592
60,592
45,104
15,488
Recycling Program
76,659
76,659
21,111
55,548
Public Building & Grounds
41,239
9,237
$
60,000
110,476
76,271
34,205
Board of Health
4,366
1,296
5,662
2,325
3,337
Recreation
110
110
110
Senior Citizens
2,983
2,983
2,983
Celebration of Public Events
1,130
1,130
1,130
Maintenance of Free Public Library
219,519
99,723
319,242
319,242
Passaic Valley Sewerage Commission
767
767
767
Lyndhurst - North Arlington Joint Meeting
14
14
14
LOSAP
113,100
113,100
90,450
22,650
Municipal Court
5,031
1,462
6,493
1,622
4,871
Unclassified
Insurance
Employee Group Insurance
428,997
248,725
$
(20,000)
657,722
298,473
359,249
Health Benefit Waiver
5,125
5,125
5,125
General Liability Insurance
78,215
78,215
78,215
Unemployment
1,000
1,000
1,000
Worker's Compensation Insurance
44,470
44,470
44,470
Utility Expenses
Electricity
74,252
74,252
16,571
57,681
Street Lighting
52,917
1,773
54,690
26,286
28,404
Telephone
18,950
434
19,384
434
18,950
Water
2,283
1,402
3,685
1,366
2,319
Gasoline
74,719
9,783
84,502
9,783
74,719
Public Employees' Retirement System
Social Security System (OAS.I.)
17,973
17,973
17,973
DCRP
7,085
7,085
7,085
Capital Improvements - Police Communicatic
105,740
1,998,260
2,104,000
$
2,104,000
Municipal Alliance on Alcohol and Drugs
Local Share
1,127
1,127
1,127
$
2,299,252
$
2,526,222
$
4,825,474
2,104,000
$
1,267,025
$
1,454,449
Cash Disbursements
$
1,006,607
Accounts Payable
41,445
Due to Public Library
218,973
Total
$
1,267,025
67
BOROUGH OF NORTH ARLINGTON
SCHEDULE OF ENCUMBRANCES PAYABLE
Balance, December 31, 2023
Increased by:
Charged to 2024 Budget Appropriations - Current Fund
Charged to 2024 Budget Appropriations - Grants
Decreased by:
Restored to Appropriation Reserves
Payments
Cancelled
Balance, December 31, 2024
Balance Detail:
Current Fund
Grants
Balance, December 31, 2024
Balance, December 31, 2023
Increased by:
Cash Receipts
Decreased by:
Payments to State ofNew Jersey
Balance, December 31, 2024
STATEMENT OF FEES PAYABLE
68
$
326,835
169,519
2,526,222
43,843
8,665
EXHIBIT A-12
$ 2,578,730
496,354
3,075,084
2,578,730
$
496,354
$
326,835
169,519
$
496,354
EXHIBIT A-13
$
18,990
22,999
41,989
20,785
$
21,204
Balance, December 31, 2023
Increased by:
Payment of 2025 Taxes
Decreased by:
Applied to 2024 Taxes
Balance, December 31, 2024
Balance, December 31, 2023
Increased by:
Overpayments Received
Decreased by:
Cash Disbursements
Balance, December 31, 2024
BOROUGH OF NORTH ARLINGTON
STATEMENT OF PREPAID TAXES
STATEMENT OF TAX OVERPAYMENTS
69
EXHIBIT A-14
$
184,841
335,628
520,469
184,841
$
335,628
EXHIBIT A-15
$
$
93,166
46,685
139,851
129,686
10,165
Balance, December 31, 2023
Increased by:
General County Levy - 2024
BOROUGH OF NORTH ARLINGTON
STATEMENT OF COUNTY TAXES PAYABLE
County Open Space Preservation Levy -2024
Due County for Added and Omitted Taxes
Decreased by:
Payments
Balance, December 31, 2024
$ 5,692,782
255,858
2,166
STATEMENT OF LOCAL SCHOOL DISTRICT TAXES PAYABLE
Increased by:
Levy - Calendar Year 2024
Decreased by:
Cash Disbursements
70
EXHIBIT A-16
$
$
5,950,806
5,950,806
5,948,640
2,166
EXHIBIT A-17
$30,884,196
$ 30,884,196
EXHIBIT A-18
BOROUGH OF NORTH ARLINGTON
STATEMENT OF APPROPRIATED GRANT RESERVES
Balance,
Transfer from
Balance,
December 31,
Current Year
Paid or
December 31,
2023
AQQfOQriations
Charged
Cancelled
2024
Body Armor Fund
$
3,854
$
3,854
Drunk Driving Enforcement Fund
2,609
$
3,634
1,312
$
4,931
Alcohol Education and Rehabilitation Fund
17,960
17,960
Drive Sober or Get Pulled Over
5,500
5,500
Clean Communities
168,126
31,178
30,935
168,369
Body Worn Cameras
81,520
81,520
Recycling Tonnage Grant
58,167
22,268
35,899
Assistance to Firefighters
Match
238
238
Highway Safety Seat Belts
4,000
4,000
Strengthening Families
3,516
3,516
Municipal Alliance
State Share
4,507
$
4,007
500
Local Match
4,001
3,000
1,001
Fire Department Saver Grant
39,542
3,183
36,359
Fire Hydrants - PVSC
17,350
34,500
36,250
15,600
Emergency Management
10,000
10,000
Arbor Day Grant - County
1,000
1,000
FEMA - CARES Act Grant
41,332
8,438
49,770
Maintenance of Free Public Library - Local Share
NJ Library Construction Bond Act
64,320
28,600
35,720
DMHAS Youth Leadership Grant
4,620
4,620
River Road Redevelopment Project Parcel - Bergen County
188,840
188,840
Beech & Argyle STS Tree Planting - Bergen County
(8,665)
8,665
Bergen County Open Space Grant-
Fischer Field
30,470
30,470
Child, Centennial Park
43,604
43,604
Bergen County Open Space - Daniell Morris/Columbus Park
County Share
19,250
19,250
Local Match
19,250
19,250
Storm Water Grant
15,000
15,000
Hazardious Waste Grant
32,347
32,347
State Library Aid
13,905
13,905
$
833,576
$
139,002
$
353,181
$
4,007
$
615,390
Cash Disbursed
$
192,327
Encumbrances
169,519
Cancelled Prior Year Encumbrances
(8,665)
$
353,181
71
EXHIBIT A-19
BOROUGH OF NORTH ARLINGTON
STATEMENT OF RESERVE FOR FEDERAL AND STATE GRANTS - UNAPPROPRIATED
Anticipated
Balance,
as 2024
December 31,
Cash
Budget
2023
Receipts
Revenue
Body Armor
$
2,916
Clean Communities
$
31,178
35,413
$
31,178
Recycling Tonnage Grant
30,221
Alcohol Education and Rehabilitation
368
Distracted Driving Incentive
6,720
The Hampshire Fund
240,000
Drunk Driving Enforcement Fund
3,634
3,634
Storm Water
15,000
15,000
American Rescue Plan
841,516
841,516
CARES Act
8,438
8,438
Hazardous Waste Grant
32,347
32,347
$
932,113
$
315,638
$
932,113
STATEMENT OF MISCELLANEOUS RESERVES
Reserve for:
Municipal Relief Aid
State Library Aid
72
Balance,
December 31,
2023
$
111,593
$
13,905
Anticipated
as 2024
Budget
Revenue
111,593
13,905
$
125,498
$
125,498
========
Balance,
December 31,
2024
$
2,916
35,413
30,221
368
6,720
240,000
$
315,638
EXHIBIT A-20
Balance,
December 31,
2024
Balance, December 31, 2023
Decreased by:
Cash Disbursements
Balance, December 31, 2024
Balance, December 31, 2023
Increased by:
BOROUGH OF NORTH ARLINGTON
STATEMENT OF RESERVE FOR TAX APPEALS
STATEMENT OF ACCOUNTS PAYABLE
Transfer from 2023 Appropriation Reserve
Decreased by:
Cancelled Payables
Cash Disbursements
Balance, December 31, 2024
$
41,000
280,176
STATEMENT OF DEFERRED CHARGES - EMERGENCY AUTHORIZATIONS
Balance,
2024
December 31,
Emergency
2023
Authorization
Cancelled
Emergency Authorizations - 2024 Budget
$
49,500
Emergency Authorizations - 2023 Budget
$
2,104,000
$
2,104,000
$
2,104,000
$
49,500
$
2,104,000
73
EXHIBIT A-21
$
1,956,126
26,152
$
1,929,974
EXHIBIT A-22
$
321,176
41,445
362,621
321,176
$
41,445
EXHIBIT A-23
Balance,
December 31,
2024
$
49,500
$
49,500
EXHIBIT A-24
BOROUGH OF NORTH ARLINGTON
STATEMENT OF DUE TO NORTH ARLINGTON PUBLIC LIBRARY
Balance, December 31, 2023
$
Increased by:
Transferred from 2023 Appropriation Reserves
218,973
Balance, December 31, 2024
$
218,973
EXHIBIT A-25
STATEMENT OF PREPAID EXPENSE - PAYROLL
Balance, December 31, 2023
$
Increased by:
Cash Disbursement - January 2025 Payroll
425,251
Balance, December 31, 2024
$
425,251
74
TRUST FUNDS
Balance, December 31, 2023
Increased by Receipts:
Animal License Fees
State Dog License Fees
Current Fund Budget Appropriation
Receipts from Current Fund
Employee Contributions
Interest on Deposits
Payroll Deposits
Library Deposits
Third-Party Ambulance Billings Deposits
Miscellaneous Reserves
Decreased by Disbursements:
Reserve for Animal Control Expenditures
State Dog License Fees
Reserve for Library Expenditures
Payroll Disbursements
Miscellaneous Reserves
Unemployment Trust Fund Expenditures
Paid by Other Trust Fund
Balance, December 31, 2024
BOROUGH OF NORTH ARLINGTON
STATEMENT OF CASH AND INVESTMENTS - COLLECTOR/TREASURER
Animal Control Fund
Other Trust Funds
$
50,047
$
3,013,352
$
7,690
1,205
22,000
$
504,292
10,126
14,223,511
17,355
6,664
925,791
30,895
15,687,739
80,942
18,701,091
26,668
1,262
17,508
14,223,511
957,812
76,427
27,930
15,275,258
$
53,012
$
3,425,833
75
EXHIBITB-2
Un_el11lllQY.mentinsurance
$
260,679
$
8,740
12,595
21,335
282,014
$
282,014
Balance, December 31, 2023
Increased by:
Statutory Excess
Balance, December 31, 2024
BOROUGH OF NORTH ARLINGTON
STATEMENT OF DUE TO CURRENT FUND
ANIMAL CONTROL TRUST FUND
STATEMENT OF AMOUNT DUE TO/ FROM STATE OF NEW JERSEY
ANIMAL CONTOL FUND
Balance, December 31, 2023
Increased by:
2024 State Fees Collected
Decreased by:
Payments to State of New Jersey
Balance, December 31, 2024
76
EXHIBITB-3
$
37,027
9,914
$
46,941
EXHIBITB-4
$
$
115
1,205
1,320
1,262
58
BOROUGH OF NORTH ARLINGTON
STATEMENT OF RESERVE FOR ANIMAL CONTROL EXPENDITURES
ANIMAL CONTROL FUND
Balance, December 31, 2023
Increased by:
Current Fund Budget Appropriation
Dog License Fees
Cat License Fees
Decreased by:
Cash Disbursements
Statutory Excess
Balance, December 31, 2024
$
STATEMENT OF DUE FROM CURRENT FUND
OTHER TRUST FUND
Balance, December 31, 2023
Increased by:
COAH Deposited in Current Fund
Decreased by:
Payments from Current Fund
Interest on Investments
Balance, December 31, 2024
$
77
22,000
7,339
351
26,668
9,914
504,292
10,126
EXHIBITB-5
$
12,905
29,690
42,595
36,582
$
6,013
EXHIBITB-6
$
504,292
348,375
852,667
514,418
$
338,249
BOROUGH OF NORTH ARLINGTON
STATEMENT OF PAYROLL AND PAYROLL DEDUCTIONS PAYABLE
OTHER TRUST FUND
Balance, December 31, 2023
Increased by:
Payroll Deposits
Decreased by:
Cash Disbursements
Balance, December 31, 2024
STATEMENT OF RESERVE FOR LIBRARY EXPENDITURE
OTHER TRUST FUND
Balance, December 31, 2023
Increased by:
Cash Receipts
Decreased by:
Cash Disbursements
Balance, December 31, 2024
78
$
$
$
$
EXHIBITB-7
14,223,511
14,223,511
14,223,511
EXHIBITB-8
91,236
17,355
108,591
17,508
91,083
EXHIBIT B-9
BOROUGH OF NORTH ARLINGTON
SCHEDULE OF MISCELLANEOUS RESERVES
OTHER TRUST FUND
Balance,
Balance,
December 31,
Cash
December 31,
2023
Increased by
Disbursements
2024
Escrow Deposits
$
220,754
$
60,587
$
53,421
$
227,920
Premium on Tax Sale
328,700
39,500
108,648
259,552
William Swellick Memorial Fund
6,105
6,105
Domestic Partners
25
25
Lien Redemptions
97,302
691,844
691,844
97,302
P.O.A.A.
49,224
5,034
54,258
Municipal Alliance Donations
85,169
2,025
87,194
Fire Prevention - Fines and Penalties
16,153
16,153
Recreation
625
625
Accumulated Leave
1,439,824
1,439,824
Police - Fund Drive
15,278
82,818
56,984
41,112
Storm Recovery
799,957
799,957
Community Development
25,000
25,000
Military Banners
5,214
2,700
2,988
4,926
Opioid Settlement
22,187
40,822
10,250
52,759
Miscellaneous Reserve
22,232
461
8,677
14,016
Library Expenditures
332,692
-
-
332,692
COAH
-
348,375
-
348,375
$
3,466,441
$
1,274,166
$
957,812
$
3,782,795
Cash Receipts
$
925,791
Due from Current Fund
348,375
$
1,274,166
79
Increased by:
Cash Receipts
BOROUGH OF NORTH ARLINGTON
STATEMENT OF RESERVE FOR THIRD PARTY AMBULANCE BILLINGS
OTHER TRUST FUND
Balance, December 31, 2024
$
$
STATEMENT OF RESERVE FOR UNEMPLOYMENT INSURANCE BENEFITS
UNEMPLOYMENT INSURANCE TRUST FUND
Balance, December 31, 2023
Increased by:
Employee Contributions
Interest Earnings
Decreased by:
Unemployment Claims
Balance, December 31, 2024
Increased by:
Unemployment Claims
Decreased by:
$
STATEMENT OF DUE TO STATE OF NEW JERSEY
UNEMPLOYMENT INSURANCE TRUST FUND
Payments to State of New Jersey by Other Trust Fund
Balance, December 31, 2023
Increased by:
STATEMENT OF DUE TO OTHER TRUST FUND
UNEMPLOYMENT INSURANCE TRUST FUND
Unemployment Trust Fund Expenditures Paid by Other Trust Fund
Balance, December 31, 2024
80
$
8,740
12,595
$
$
$
$
$
EXHIBIT B-10
6,664
6,664
EXHIBIT B-11
220,646
21,335
241,981
76,427
165,554
EXHIBIT B-12
76,427
76,427
EXHIBIT B-13
40,033
76,427
116,460
GENERAL CAPITAL FUND
BOROUGH OF NORTH ARLINGTON
STATEMENT OF CASH - COLLECTOR/TREASURER
Balance, December 31, 2023
Increased by:
Interest Earnings
$
253,688
Current Fund Budget Appropriation
Capital Improvement Fund
500,000
Payment of Note Principal
1,562,050
Grant Proceeds
155,783
Bond Anticipation Notes
3,923,000
Premium on Sale of Bond Anticipation Notes
54,746
Decreased by:
Improvement Authorizations
1,440,342
Bond Anticipation Notes
1,562,000
Payments to Current Fund
515,738
Balance, December 31, 2024
81
EXHIBIT C-2
$
7,146,019
6,449,267
13,595,286
3,518,080
$ 10,077,206
BOROUGH OF NORTH ARLINGTON
ANALYSIS OF CASH
Fund Balance
Capital Improvement Fund
Grants Receivable
Due from Current Fund
Reserve for Payment of Debt
Contracts Payable
Excess Note Proceeds
Ord.
No.
2291
Purchase and Installation of Computer System
2304
Various Public Improvements and Acquisitions
2305
Various Interior Renovations
2306
Purchase of one Police Sport Utility Vehicle
2310
Acquisition of a New Pumper Fire Engine
2314
Acquisition ofNew Automotive Vehicles
2336
Various Interior Renovations
2337
Various Acquisitions
2345
Various Interior Renovations
2361
Various Public Improvements and Acquisitions
2365
Fisher Field Playground and Park Improvements
23 80
Various Public Improvements and Acquisitions
2388
Public Safety 911 Call Station
2400
Acq & Install Police Communications System
2402
Improvements to Macaluso Park
2409
Allan Park Sports Field Lighting Improve
2417
Purchase and install hydro defense system DPW
2419
Purchase one hydraulic wood chipper w access
2427
2024 Road Improvement Program
82
EXHIBIT C-3
Balance,
December 31,
2024
$
1,771,347
$
885,420
(428,880)
(537,290)
1,208,203
4,620,322
92,900
13,030
713,085
76,458
60
(75,085)
6,408
122,813
41,223
64,450
67,119
264,530
376,628
13,736
382,084
116,000
159,528
75,000
2,117
46,000
10,077,206
EXHIBIT C-4
BOROUGH OF NORTH ARLINGTON
STATEMENT OF GRANTS RECEIVABLE
Balance,
Balance,
December 31,
Grants
December 3 1,
2023
Awarded
Cancelled
2024
FEMA Grants
Ordinance 24-2417
$
75,000
$
75,000
Green Acre's Grants
Ordinance 24-2409
222,813
222,813
Community Develogment Block Grants
Ordinance 15-2162
$
37,211
$
37,211
Ordinance 22-2361
24,300
24,300
Bergen County
Ordinance 24-2402
46,587
46,587
Ordinance 19-2261
98,251
-
38,071
60,180
-
$
159,762
$
344,400
$
75,282
$
428,880
Analysis of Balance
Pledged to Ordinance
$
122,551
$
344,400
$
38,071
$
428,880
Pledged to Reserve
37,211
-
37,211
$
159,762
$
344,400
$
75,282
$
428,880
83
BOROUGH OF NORTH ARLINGTON
STATEMENT OF DUE FROM CURRENT FUND
Balance, December 31, 2023
Increased by:
Current Fund Budget Appropriation
Capital Improvement Fund
$
Bond Anticipation Note Principal
General Capital Fund Grant Receipts
Payments to Current Fund
Decreased by:
Interest Earnings
Current Fund Anticipated Revenue - Reserve for Payment of Debt
Receipts from Current Fund
Balance, December 31, 2024
EXHIBIT C-5
$
504,540
500,000
1,562,050
32,750
515,738
2,610,538
3,115,078
253,688
262,050
2,062,050
2,577,788
$
537,290
EXHIBIT C-6
STATEMENT OF DEFERRED CHARGES TO FUTURE TAXATION - FUNDED
Balance, December 31, 2023
$
4,989,000
Decreased by:
Current Fund Budget Appropriation:
Serial Bond Principal
1,875,000
Balance, December 31, 2024
$
3,114,000
84
Ord. No.
2162
2277
2304
2305
2310
2314
2336
2337
2345
2361
2365
2380
2400
2427
Improvement Description
Various Public Improvements
Various Improvements and Acquisitions
Various Public Improvements and Acquisitions
Various Interior Renovations
Acquisition of a New Pumper Fire Engine
Acquisition of New Automotive Vehicles
Various Interior Renovations
Various Acquisitions
Various Interior Renovations
Various Public Improvements and Acquisitions
Fisher Field Playground and Park Improvements
Various Public Improvements and Acquisitions
Acq & Install Police Communications System
2024 Road Improvement Program
BOROUGH OF NORTH ARLINGTON
STATEMENT OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
Balance,
Note Paydowns
December 31,
2024
Budget
Grant
Authorizations
2023
Authorizations
Appropriation
Proceeds
Cancelled
$
37,211
$
37,211
19,000
$
19,000
1,521,850
700,000
817,000
250,000
614,000
150,000
71,751
71,251
67,000
67,000
469,000
100,000
780,000
104,799
399,200
50,000
1,192,000
50,000
2,295,000
$
188,533
$
1,923,000
870,000
$
8,283,012
$
2,793,000
$
1,562,050
$
188,533
$
37,211
Bond Anticipation Notes Payable
Less: Excess Proceeds
Ordinance 2304
Bond Anticipation Notes Payable
85
EXHIBIT C-7
Analx_sis of Balance
Balance,
Bond
Unexpended
December 31,
Anticipation
Improvement
2024
Notes
wenditures
8.!.1tborizaJions
$
821,850
$
821,850
567,000
550,000
$
17,000
464,000
200,000
$
75,085
188,915
500
500
369,000
369,000
675,201
674,950
251
349,200
349,200
1,142,000
1,049,100
92,900
2,106,467
2,000,000
106,467
1,923,000
1,923,000
870,000
870,000
$
9,288,218
$
7,937,100
$
75,085
$
1,276,033
$
8,030,000
$
92,900
92,900
$
7,937,100
Improvement Authorizations - Unfunded
$
3,261,610
Less:
Unexpended Note Proceeds
Ordinance 2304
713,085
Ordinance 2305
76,458
Ordinance 2337
41,223
Ordinance 2345
64,450
Ordinance 2361
67,119
Ordinance 2365
264,530
Ordinance 2380
376,628
Ordinance 2400
382,084
1,985,577
$
1,276,033
Date of
Purpose
Issue
General Improvement - Encap Bonds
12/15/2010
General Obligation Bonds - 2013
8/15/2013
General Improvement Bonds - 2018
10/1/2018
BOROUGH OF NORTH ARLINGTON
STATEMENT OF GENERAL SERIAL BONDS
Maturities of Bonds
Amount of
Outstanding
Original
December 31. 2024
Issue
Date
Amount
$ 2,800,000
12/15/2024
$
200,000
7,634,000
8/15/2025
625,000
8/15/2026
625,000
8/15/2027
609,000
7,105,000
10/1/2025
1,255,000
EXHIBIT C-8
Balance,
Balance,
Interest
December 31,
December 3 1,
Rate
2023
Decreased
2024
4.25%
$
200,000
$
200,000
3.000%
3.250%
3.375%
2,509,000
650,000
$ 1,859,000
2.625%
2,280,000
1,025,000
1,255,000
$ 4,989,000
$ 1,875,000
$ 3,114,000
Paid by Budget Appropriation
$ 1,875,000
86
EXHIBIT C-9
BOROUGH OF NORTH ARLINGTON
STATEMENT OF BOND ANTICIPATION NOTES
Date of
Issue of
Balance,
Balance,
Original
Date of
Date of
Interest
December 31,
December 31,
Ord. No.
Improvement Description
Note
Issue
Maturity
Rate
2023
Increased
Decreased
2024
2277
Various Improvements and Acquisitions
11/12/2020
8/4/2023
8/2/2024
4.50%
$
19,000
$
19,000
2304
Various Public Improvements and Acquisitions
11/12/2020
8/1/2024
8/1/2025
4.50%
$
914,750
$
914,750
8/4/2023
8/2/2024
4.50%
1,614,750
1,614,750
2305
Various Interior Renovations
11/12/2020
8/1/2024
8/1/2025
4.50%
550,000
550,000
8/4/2023
8/2/2024
4.50%
800,000
800,000
2310
Acquisition of a New Pumper Fire Engine
11/12/2020
8/1/2024
8/1/2025
4.50%
200,000
200,000
8/4/2023
8/2/2024
4.50%
350,000
350,000
2314
Acquisition ofNew Automotive Vehicles
11/10/2021
8/4/2023
8/2/2024
4.50%
71,251
71,251
2336
Various Interior Renovations
11/9/2022
8/4/2023
8/2/2024
4.50%
67,000
67,000
2337
Various Acquisitions
11/9/2022
8/1/2024
8/1/2025
4.50%
369,000
369,000
8/4/2023
8/2/2024
4.50%
469,000
469,000
2345
Various Interior Renovations
11/9/2022
8/1/2024
8/1/2025
4.50%
674,950
674,950
8/4/2023
8/2/2024
4.50%
779,749
779,749
2361
Various Public Improvements and Acquisitions
8/4/2023
8/1/2024
8/1/2025
4.50%
349,200
349,200
8/4/2023
8/2/2024
4.50%
399,200
399,200
2365
Fisher Field Playground and Park Improvements
8/4/2023
8/1/2024
8/1/2025
4.50%
1,049,100
1,049,100
8/4/2023
8/2/2024
4.50%
1,099,050
1,099,050
2380
Various Public Improvements and Acquisitions
8/1/2024
8/1/2024
8/1/2025
4.50%
2,000,000
2,000,000
2400
Acq & Install Police Communications System
8/1/2024
8/1/2024
8/1/2025
4.50%
1,923,000
1,92]~000
$
5,669,000
$
8,030,000
$
5,669,000
8,030,000
Issued for Cash $
3,923,000
Renewals
4,107,000
$
4,107,000
Budget Appropriation
1,562,000
$
8,030,000
$
5,669,000
87
EXHIBIT C-10
BOROUGH OF NORTH ARLINGTON
STATEMENT OF IMPROVEMENT AUTHORIZATIONS
2024 Authorizations
Balance,
Capital
Deferred
Balance,
December 31 2023
Grants
Improvement
Charges
Paid or
POs
Authorizations
December 31 2024
Ord. No.
Improvements
Funded
Unfunded
Receivable
Fund
Unfunded
Charged
Restored
Cancelled
Funded
Unfunded
15-2162
Various Public Improvements
$
664,571
$
37,211
$
701,782
17-2228
Various Public Improvements and Acquisitions
543,632
543,632
19-2261
Installation of Turf Fields
39,921
$
1,850
38,071
19-2277
Various Improvements and Acquisitions
401,729
19,000
4,970
$
4,970
420,729
20-2291
Purchase and Installation of Computer System
13,030
$
13,030
20-2304
Various Public Improvements and Acquisitions
755,425
145,300
102,960
$
713,085
20-2305
Various Interior Renovations
71,472
1,417
23,403
93,458
20-2306
Purchase of one Police Sport Utility Vehicle
120
60
60
20-2310/23-2381
Acquisition of a New Pumper Fire Engine
269,490
880,485
799,910
188,915
20-2314
Acquisition of New Automotive Vehicles
8,823
22,564
20,649
6,408
500
21-2334
New RoofBoro Hall & Senior Citizen Center
300
300
21-2336
Various Interior Renovations
55,813
67,000
122,813
21-2337
Various Acquisitions
43,125
1,902
41,223
22-2345
Various Interior Renovations
65,188
20,070
19,583
64,701
22-2361
Various Public Improvements and Acquisitions
25,409
73,253
114,963
67,119
22-2365
Fisher Field Playground and Park Improvements
350,437
7,492
14,485
357,430
23-2380
Various Public Improvements and Acquisitions
1,233,714
1,805,114
1,054,495
483,095
23-2388
Public Safety 911 Call Station
13,736
261,264
261,264
13,736
24-2400
Acq & Install Police Communications System
$
460,000
$
1,923,000
2,000,916
382,084
24-2402
Improvements to Macaluso Park
$
46,587
69,413
116,000
24-2408
Improve ro Childrens Centennial Park
270,026
270,026
24-2409
Allan Park Sports Field Lighting Improve
222,813
222,813
286,098
159,528
24-2417
Purchase and install hydro defense system DPW
75,000
200,000
200,000
75,000
24-2419
Purchase one hydraulic wood chipper w access
80,000
77,883
2,117
24-2427
2024 Road Improvement Program
46,000
870,000
46,000
870,000
$
1,732,852
$ 2,946,294
$
344,400
$
1,348,252
$
2,793,000 L~,Q~,664 $2,4!6,6~2_ $
1,704,514
$
554,692
l_____l_,_261,610
Cash Disbursements
$ 1,440,342
Contracts Payable
4,620,322
$ 6,060,664
Deferred Charges Unfunded $
37,211
Grant Receivable
38,071
Fund Balance
421,029
Reserve for Payment of Debt
1,208,203
$
1,704,514
88
BOROUGH OF NORTH ARLINGTON
SCHEDULE OF CONTRACTS PAYABLE
Balance, December 31, 2023
Increased by:
Charged to Improvement Authorizations
Decreased by:
Restored to Improvement Authorizations
Balance, December 3 1, 2024
STATEMENT OF CAPITAL IMPROVEMENT FUND
Balance, December 31, 2023
Increased by:
Budget Appropriation
Decreased by:
Appropriated to Finance Improvement Authorizations
Balance, December 31, 2024
STATEMENT OF RESERVE FOR PAYMENT OF DEBT
Balance, December 31, 2023
Increased by:
Cancelled Improvement Authorizations
Decreased by:
Anticipated as 2024 Budget Revenue
Balance, December 31, 2024
89
EXHIBIT C-11
$
$
2,416,682
4,620,322
7,037,004
2,416,682
4,620,322
EXHIBIT C-12
$
$
1,733,672
500,000
2,233,672
1,348,252
885,420
EXHIBIT C-13
$
$
262,050
1,208,203
1,470,253
262,050
1,208,203
EXHIBIT C-14
BOROUGH OF NORTH ARLINGTON
STATEMENT OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Balance,
Bond
Balance,
Ord.
December 3 1,
2024
Budget
Authorizations
Anticipation
Grant
December 31,
No.
Improvement Description
2023
Authorizations
Appropriation
Cancelled
Notes Issued
Proceeds
2024
2162
Various Public Improvements
$
37,211
$
37,211
2305
Various Interior Renovations
17,000
$
17,000
2310
Acquisition of a New Pumper Fire Engine
264,000
264,000
2314
Acquisition of New Automotive Vehicles
500
500
2345
Various Interior Renovations
251
251
2365
Fisher Field Playground and Park Improvements
92,950
$
50
92,900
2380
Various Public Improvements and Acquisitions
2,295,000
$
2,000,000
$
188,533
106,467
2400
Acq & Install Police Communications System
$
1,923,000
1,923,000
2427
2024 Road Improvement Program
870,000
870,000
-
$
2,706,912
$
2,793,000
$
50
$
37,211
$
3,923,000
$
188,533
$
1,351,118
90
BOROUGH OF NORTH ARLINGTON
BERGEN COUNTY, NEW JERSEY
PARTII
GOVERNMENT AUDITING STANDARDS
AND
SINGLE AUDIT
LERCH, VINCI & BLISS, LLP
DIETER P. LERCH, CPA, RMA, PSA
GARY J. VINCI, CPA, RMA, PSA
JEFFREY C. BLISS, CPA, RMA, PSA
PAULJ. LERCH, CPA, RMA, PSA
CERTIFIED PUBLIC ACCOUNT ANTS
REGISTERED MUNICIPAL ACCOUNT ANTS
JULIUS B. CONSONI, CPA, PSA
ANDREW D. PARENTE, CPA, RMA, PSA
ELIZABETH A. SHICK, CPA, RMA, PSA
ROBERTW. HAAG, CPA, RMA, PSA
DEBRA GOLLE, CPA
MARK SACO, CPA
ROBERT LERCH, CPA, PSA
CHRISTOPHERM. VINCI, CPA, PSA
CHRISTINA CUIFFO, CPA, PSA
JOHN CUIFFO, CPA, PSA
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and Members
of the Borough Council
Borough ofNorth Arlington
North Arlington, New Jersey
We have audited, in accordance with the auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of
the United States, and audit requirements prescribed by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey, the financial statements - regulatory basis of the Borough of North Arlington,
which comprise the balance sheets - regulatory basis of the various funds and account group as of December 31, 2024,
and the related statements of operations and changes in fund balance - regulatory basis, statements of revenues -
regulatory basis and statements of expenditures - regulatory basis of the Current Fund for the year then ended and the
related notes to the financial statements, and have issued our report thereon dated August 7, 2025. Our report on the
financial statements - regulatory basis was modified to indicate that the financial statements were not prepared in
accordance with accounting principles generally accepted in the United States of America but rather prepared in accordance
with the regulatory basis of accounting prescribed by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey, which is a basis of accounting other than accounting principles generally accepted
in the United States, to meet the financial reporting requirements of the State of New Jersey for municipal government
entities as described in Note 1. In addition, our report on the financial statements - regulatory basis was modified on the
regulatory basis of accounting because of the presentation of the unaudited LOSAP Trust Fund financial statements.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Borough of North Arlington's internal
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 of North Arlington's internal control. Accordingly, we do not express an
opinion on the effectiveness of the Borough of North Arlington's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements
on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that
there is a reasonable possibility that a material misstatement of the Borough'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.
17-17 ROUTE 208 FAIR LAWN, NJ 07410 • TELEPHONE (201) 791-7100 • FACIMILE (201) 791-3035
WWW.LVBCPA.COM
91
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was
not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies
and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations,
during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We
did identify a certain deficiency in internal control, described in the accompanying schedule of findings and questioned
costs as item 2024-001 that we consider to be a significant deficiency.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Borough of North Arlington'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 and audit requirements as prescribed by the Division of
Local Government Services, Department of Community Affairs, State of New Jersey.
However, we noted certain matters that are not required to be reported under Government Auditing Standards that we
reported to management of the Borough of North Arlington in Part ill of this report of audit entitled; "Letter of Comments
and Recommendations".
Borough of North Arlington's Response to Finding
Government Auditing Standards requires the auditor to perform limited procedures on the Borough of North Arlington's
response to the finding identified in our audit and described in the accompanying schedule of findings and questioned
costs. The Borough of North Arlington's response was not subjected to the other auditing procedures applied in the audit
of the financial statements and, accordingly, we express no opinion on the response.
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 North Arlington'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 North Arlington's internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
Fair Lawn, New Jersey
August 7, 2025
92
~, c,,L·.; _JJ/4,t, 11rtd
LERCH, VINCI & BLISS, LLP
Certified Public Accountants
Registered Municipal Accountants
Re stered Municipal Accountant
RMA Number CR000457
h I LERCH, VINCI & BLISS, LLP
B
CERTIFIED PUBLIC ACCOUNT ANTS
REGISTERED MUNICIPAL ACCOUNT ANTS
DIETER P. LERCH, CPA, RMA, PSA
GARY J. VINCI, CPA, RMA, PSA
JEFFREY C. BLISS, CPA, RMA, PSA
PAUL}. LERCH, CPA, RMA, PSA
JULIUS B. CONSONI, CPA, PSA
ANDREW D. PARENTE, CPA, RMA, PSA
ELIZABETH A. SHICK, CPA, RMA, PSA
ROBERTW. HAAG, CPA, RMA, PSA
DEBRA GOLLE, CPA
MARK SACO, CPA
ROBERT LERCH, CPA, PSA
CHRISTOPHER M. VINCI, CPA, PSA
CHRISTINA CUIFFO, CPA, PSA
JOHN CUIFFO, CPA, PSA
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM;
REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT
ON THE SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS
REQUIRED BY U.S. UNIFORM GUIDANCE
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and Members
of the Borough Council
Borough ofNorth Arlington
North Arlington, New Jersey
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the Borough of North Arlington's compliance with the types of compliance requirements identified as
subject to audit in the U.S. Office of Management and Budget (0MB) Compliance Supplement that could have a direct
and material effect on each of the Borough of North Arlington's major federal programs for the year ended December 31,
2024. The Borough of North Arlington's major federal programs are identified in the summary of auditor's results section
of the accompanying schedule of findings and questioned costs.
In our opinion, the Borough of North Arlington complied, in all material respects, with the compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for the year ended
December 31, 2024.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; audit requirements prescribed by the Division of Local Government Services,
Department of Community Affairs, State of New Jersey; audit requirements of Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Our responsibilities under those standards, U.S. Uniform Guidance and New Jersey 0MB Circular are further
described in the Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the Borough of North Arlington and to meet our other ethical responsibilities, in
accordance with 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 opinion on compliance for each major federal program. Our audit does
not provide a legal determination of the Borough of North Arlington's compliance with the compliance requirements
referred to above.
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WWW.LVBCPA.COM
93
Responsibilities of Management/or Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation,
and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulation, rules,
and provisions of contracts or grant agreements applicable to the Borough of North Arlington's federal programs.
Auditor's Responsibilities/or the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Borough of North
Arlington's compliance based on our audit.
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 generally accepted auditing
standards, Government Auditing Standards, audit requirements prescribed by the Division of Local Government Services,
Department of Community Affairs, State of New Jersey, U.S. Uniform Guidance will always detect material
noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for
that resulting from error, as fraud may involve collusion, forgery, intentional omission, misrepresentation, or the override
of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a
substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of
the report on compliance about the Borough of North Arlington's compliance with the requirements of each major federal
program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards. audit
requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of New
Jersey and U.S. Uniform Guidance, we:
•
Exercise professional judgement and maintain professional skepticism throughout the audit.
•
Identify and assess the risks of material noncompliance, 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 Borough of North Arlington's compliance with the compliance requirements referred to above and
performing such other procedures as we considered necessary in the circumstances.
•
Obtain an understanding of the Borough of North Arlington's internal control over compliance relevant to the
audit in order to design audit procedures that are appropriate in the circumstances and to test and report on
internal control over compliance in accordance with the U.S. Uniform Guidance but not for the purpose of
expressing an opinion on the effectiveness of the Borough of North Arlington's internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that
we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does
not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect
and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material
weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement
of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with
a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over
compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor's
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance.
Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in
internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, no such opinion is expressed.
94
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal
control over compliance and the results of that testing based on the requirements of U.S. Uniform Guidance. Accordingly,
this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by U.S. Uniform Guidance
We have audited the financial statements - regulatory basis of the Borough of North Arlington, which comprise the
balance sheets - regulatory basis of the various funds and account group as of December 31, 2024, and the related
statements of operations and changes in fund balance - regulatory basis, statements of revenues - regulatory basis and
statements of expenditures - regulatory basis of the Current Fund for the year then ended and the related notes to the
financial statements and have issued our report thereon dated August 7, 2025, which contained a modified opinion on
those financial statements prepared in accordance with the regulatory basis of accounting because of the LOSAP Trust
Fund has not been audited and also contained a modified opinion on those financial statements because they were not
prepared in accordance with accounting principles generally accepted in the United States of America. Our audit was
conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of
expenditures of federal awards as required by U.S. Uniform Guidance is presented for purposes of additional analysis and
is not a required part of the 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 financial statements. The
information has been subjected to the auditing procedures applied in the audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying accounting and
other records used to prepare the financial statements or to the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the
schedule of expenditures of federal awards is fairly stated in all material respects in relation to the financial statements as
a whole.
Fair Lawn, New Jersey
August 7, 2025
95
•
~~.d-,::JJ~.dlP
LERCH, VINCI & BLISS, LLP
Certified Public Accountants
Register d Municipal Accountants
Reg· ere Municipal Accountant
RMA Number CR000457
Schedule A
BOROUGH OF NORTH ARLINGTON
SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS
FOR THE YEAR ENDED DECEMBER 31, 2024
Federal
Balance
Balance
State
AL
Grant
Grant
2024
December 31,
Revenues
December 31,
Cumulative
Federal Pro&@!!!
Account Number
Number
Year
Award
Receipts
2023
Realized
Expended
Cancelled
2024
fuill.enditures
Law and Public Safety
State and Highway Community Safety
Click It or Ticket
066-1160-100-155
20.600
2009
$
4,000
$
4,000
$
4,000 *
U.S. Denartment of Housing and Urban Develonment
Community Development Block Grant Ord. 2162
NIA
20.205
2015
100,000
37,211
$
(37,211)
* $
62,789
Community Development Block Grant Ord. 2361
NIA
20.205
2022
24,300
24,300
24,300 *
U.S. Denartment ofTreasua
Coronavirus State and Local Fiscal Recovery Fund
(Passed through State Dept. of Community Affairs)
American Rescue Plan
022-8030-100-687
21.027
2021
1,641,516
$
841,516
$
841,516
*
1,641,516
U.S. Denartment of Homeland Security
Public Assistance - IDA
97.036
2024
8,002
$
8,002
8,002
8,002
*
8,002
Assistance to Firefighters Grant Program - SAFER
97.044
2008
104,000
39,542
3,183
36,359 *
67,641
CARES Act - Coronavirus Relief Fund
066-1200-100-CSO
93.391
2020
189,279
41,332
8,438
49,770 *
139,509
FEMA - Ordinance 24-2417
2024
75,000
75,000
75,000 *
-
$
146,385
$
932,956
$
852,701
$
(37,211) $
189,429
See Accompanying Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance
96
Schedule B
BOROUGH OF NORTH ARLINGTON
SCHEDULE OF EXPENDITURES OF ST ATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER 31, 2024
Grant
2024
Balance,
Balance,
Grant
Grant
Award
Grant
December 31,
December 31,
Cumulative
Sta~Grant Pro_g@m
Number
Year
Received
Receipts
2023
Revenue
Expended
Adjustment
2024
fuenditures
Department of Human Services
Strengthening Families
I 00-054-4213
2010
$
3.516
$
3.516
$
3,516 *
Department of Environmental Protection
Clean Communities Program
042-00-4870-100-038
2016
31,516
6,084
$
6.084
* $
31,516
Clean Communities Program
042-00-4870-100-038
2017
26,775
26.775
24,851
1.924 *
24,851
Clean Communities Program
042-00-4870-100-038
2018
25,627
25.627
25,627 *
Clean Communities Program
042-00-4870-100-038
2019
28,598
28,598
28.598 *
Clean Communities Program
042-00-4870-100-03 8
2020
25,788
25,788
25,788 *
Clean Communities Program
042-00-4870-100-038
2021
27.457
27.457
27.457 *
Clean Communities Program
042-00-4870-100-038
2022
27,797
27.797
27,797 ..
Clean Communities Program
042-00-4870-100-038
2023
31.178
$
31,178
31.178 *
Clean Communities Program
042-00-4870-100-038
2024
35.413
$
35.413
*
Recycling Tonnage Grant
042-00-4900-752-00 I
2021
28.489
28.489
22.268
6,221
..
22,268
Recycling Tonnage Grant
042-00-4900-752-00 I
2022
29.678
29.678
29,678 *
Recycling Tonnage Grant
042-00-4900-752-00 I
2024
30.221
30,221
*
Hazardous Waste Grant
NIA
2023
32.347
32.347
32,347
*
*
Storm Water
042-4850-100-099
2023
15.000
15.000
15,000 *
*
Green Acres Grant - Ord. 24-2409
2024
222.813
222,813
222,813 ..
Department of Law and Public Safetv
Police Body Armor Replacement
066-00-1020-718-00 I
2022
8.527
3.854
3,854
*
8,527
Police Body Armor Replacement
066-00-1020-718-00 I
2024
2,916
2,916
..
Drunk Driving Enforcement Fund
1110-448-031020-22
2020
9,156
2,609
1,312
1,297 *
6,547
Drunk Driving Enforcement Fund
1110-448-031020-22
2023
3,634
3,634
3,634 *
*
Drive Sober or Get Pulled Over
066-00-1160-100-157
2018
5.500
5,500
5,500 ..
Distracted Driving Incentive
2024
6,720
6.720
*
Emergency Management Program
NIA
2014
10.000
10,000
10,000 * ..
Body Worn Cameras
066-1020-100-495
2021
81,520
81,520
81,520 ..
Department of Transportation
State Highway Aid - Ordinance 2427
NIA
2024
155.783
155,783
155,783
155,783 *
NJ Department ofTreasun:
(Passed through the County of Bergen)
Municipal Alliance on Alcoholism & Drug Abuse
NIA
2022
4,507
4,507
$
(4,007)
500 ..
NJ Administrative Office of the Courts
Alcohol Education and Rehabilitation
760-046-4240-00 I
2019
2,733
645
645 *
2,088
Alcohol Education and Rehabilitation
760-046-4240-00 I
2020
4,251
4,251
4,251
*
Alcohol Education and Rehabilitation
760-046-4240-00 I
2021
6,589
6,589
6,589 ..
Alcohol Education and Rehabilitation
760-046-4240-00 I
2022
6.475
6.475
6,475 ..
Alcohol Education and Rehabilitation
760-046-4240-00 I
2024
368
368
$
355,759
$
460,755
$
58.369
_$ __
(4,007) $
754,138
Note: This Schedule is not subject to a single Audit in accordance with NJ 0MB Circular 15-08.
See Accompanying Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance
97
NOTES TO THE SCHEDULES OF EXPENDITURES OF FEDERAL AW ARDS
AND STATE FINANCIAL ASSISTANCE
BOROUGH OF NORTH ARLINGTON
NOTES TO THE SCHEDULES OF EXPENDITURES OF FEDERAL AW ARDS
AND STATE FINANCIAL ASSISTANCE
YEAR ENDED DECEMBER 31, 2024
NOTE 1 REPORTING ENTITY
The Borough of North Arlington (the "Borough") received and participated in numerous Federal Award and State
Financial Assistance programs in the form of cost reimbursement grants and revenue sharing entitlements. The
Borough is the reporting entity for these programs. The Borough is defined in Note 1 (A) to the Borough's Financial
Statements.
NOTE 2 BASIS OF PRESENTATION
The accompanying schedules of expenditures of federal awards and state financial assistance (the "Schedules") present
the activity of all federal and state programs of the Borough. All federal awards received directly from federal agencies
or passed through other government agencies are included on the schedule of expenditures of federal awards. All state
awards received directly from state agencies or passed through other government agencies are included in the schedule
of expenditures of state financial assistance. The information in these Schedules are presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principals, and audit Requirements for Federal Awards (Uniform Guidance) and New Jersey 0MB Circular Letter 15-
08 Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid.
NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the Borough conform to the accounting principles and practices prescribed by the Division
of Local Government Services, Department of Community Affairs, State of New Jersey (the "Division") which is a
regulatory basis of accounting other than accounting principles generally accepted in the United States of America
(GAAP). Such principles and practices are designed primarily for determining compliance with legal provisions and
budgetary restrictions and as a means of reporting on the stewardship of public officials with respect to public funds.
Under this method of accounting, the Borough accounts for federal awards and state financial assistances through
separate funds and accounts which differ from those required by accounting principles generally accepted in the United
States of America. The Borough's summary of significant accounting policies are described in Note 1 to the Borough's
Financial Statements.
NOTE 4 RELATIONSHIP TO FINANCIAL STATEMENTS
Amounts reported in the accompanying schedules agree with amounts reported in the Borough's financial statements.
Financial assistance revenues are reported in the Borough's financial statements on a basis of accounting described
above as follows:
Current Fund
General Capital Fund
$
$
Federal
857,956
$
75,000
932,956
$
State
82,159
$
378,596
940,115
453,596
460,755
$ 1,393,711
NOTE 5 RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS
Amounts reported in the accompanying schedules may not necessarily agree with the amounts reported in the related
federal and state financial reports due to timing differences between the Borough's fiscal year and grant program year.
98
Financial Statements
BOROUGH OF NORTH ARLINGTON
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2024
Part I - Summary of Auditor's Results
Type of auditor's repoti issued on financial statements Modified Regulat01y Basis (Unaudited LOSAP)
Internal control over financial rep01iing:
1) Material weakness( es) identified
2) Significant deficiency(ies) that are not
considered to be material weakness( es)?
Noncompliance material to the financial
statements noted?
State Awards Section
Not Applicable
Federal Awards Section
_____ yes
X
___ x ___ yes ----
_____ yes
X
Dollar threshold used to determine Type A programs:
$ 750,000
---'------------
Auditee qualified as low-risk auditee?
_____ yes
X
Type of auditors' repoti on compliance for major progra Unmodified
no
none reported
no
no
----------------
Internal Control over compliance:
Significant Deficiencies identified?
_____ yes
1)
2)
Were significant deficiencies identified that were
not considered to be material weaknesses? _____ yes
Any audit findings disclosed that are required to be reported
in accordance with Uniform Guidance?
_____ yes
Identification of major programs:
X
no
X
no
X
no
AL Number
Name of Federal Program
21.027
American Rescue Plan Fiscal Recovery Funds
See Accompanying Notes to Financial Statements
99
BOROUGH OF NORTH ARLINGTON
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONT'D)
FOR THE YEAR ENDED DECEMBER 31, 2024
Part II - Schedule of Financial Statement Findings
This section identifies the significant deficiencies, material weaknesses, and instances of noncompliance related to the
financial statements that are required to be reported in accordance with Chapter 5 .18 of Government Auditing Standards.
Finding 2023-001
Our audit of the recreation department indicated that a receipt ledger is not being maintained. Furthermore, source
documents to support recreation fees and permits collected were not retained. In addition, transaction activity is not
being recorded in the Borough's trust account.
Criteria or Specific Requirement
Generally Accepted Accounting Principles -Internal Controls
Condition
The recreation department is not maintaining a cash receipt ledger and does not retain source documents upon
collections being made. Receipts and disbursements are not being recorded in the Borough's accounting records.
Questioned Costs
Unknown.
Context
The Borough's financial statements do not report all fees and permits collected by the recreation department nor are
the activity expenses recorded. Neither a transaction ledger nor source documents were maintained.
Amounts reported in the Borough's financial statements for recreation receipts and payments could not be verified.
Recommendation
A daily cash receipts ledger be maintained by the recreation department, all transaction activity be recorded in the
Borough's trust account and source documents be retained and made available for audit.
View of Responsible Officials and Planned Corrective Action
Management has reviewed this finding and has indicated that corrective action will be taken.
100
BOROUGH OF NORTH ARLINGTON
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONT'D)
FOR THE YEAR ENDED DECEMBER 31, 2024
Part III - Schedule of Federal and State Award Findings and Questioned Costs
This section identifies the significant deficiencies, material weaknesses, and instances of noncompliance including
questioned costs, related to the audit of major federal and state programs, as required by U.S. Uniform Guidance and New
Jersey 0MB Circular 15-08.
CURRENT YEAR STATE A WARDS
Not Applicable.
CURRENT YEAR FEDERAL AW ARDS
There are none.
101
BOROUGH OF NORTH ARLINGTON
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
FOR THE YEAR ENDED DECEMBER 31, 2024
This section identifies the status of prior-year findings related to the financial statements are required to be reported in
accordance with Chapter 6.12 of Government Auditing Standards.
STATUS OF PRIOR YEAR FINDINGS
Finding 2023-001
Our audit of the recreation department indicated that a receipt ledger is not being maintained. Furthermore,
source documents to support recreation fees and permits collected were not retained.
Current Status
See Finding 2024-001.
102
BOROUGH OF NORTH ARLINGTON
BERGEN COUNTY
PARTID
SUPPORTING DATA
LETTER OF COMMENTS AND RECOMMENDATIONS
YEAR ENDED DECEMBER 31, 2024
BOROUGH OF NORTH ARLINGTON
SUPPLEMENTARY DATA
COMPARATIVE STATEMENT OF OPERATIONS AND CHANGE IN FUND BALANCE -
CURRENT FUND
Year 2024
Year 2023
Amount
Percent
Amount
Percent
REVENUE AND OTHER INCOME REALIZED
Fund Balance Anticipated
$
4,277,766
6.14%
$
4,195,000
6.19%
Miscellaneous - From Other Than Local
Property Tax Levies
7,225,858
10.38%
6,272,896
9.25%
Collection of Delinquent Taxes and Tax Title Liens
452,747
0.65%
458,752
0.68%
Collection of Current Tax Levy
56,109,200
80.61%
54,881,292
80.93%
Other Credits
1,542,640
2.22%
2,009,476
2.96%
Total Income
69~608~211
100.00%
67~817A16
100.00%
EXPENDITURES
Budget Expenditures
Municipal Purposes
28,813,795
43.57
30,180,658
45.84
County Taxes
5,950,806
9.00
5,672,845
8.62
Local School Taxes
30,884,196
46.71
29,949,974
45.49
Other Expenditures
476,692
0.72
42,194
0.06
Total Expenditures
66,125,489
100.00
65,845,671
100.00
Excess in Revenue
3,482,722
1,971,745
Adjustments to Income before Surplus:
Expenditures Included above which by Statute are
Deferred Charges to Budget of Succeeding Year
49,500
2,104,000
Statutory Excess to Surplus
3,532,222
4,075,745
Fund Balance, January 1
7,994,229
8,113,484
11,526,451
12,189,229
Less: Utilized as Anticipated Revenue
4,277,766
4,195,000
Fund Balance, December 31
$
7,248,685
$
7,994,229
103
BOROUGH OF NORTH ARLINGTON
SUPPLEMENTARY DATA
COMPARATIVE SCHEDULE OF TAX RATE INFORMATION
2024
2023
2022
Apportionment of Tax Rate
$
2.304
$
2.442
$
2.571
Municipal
$
0.773
$
0.833
$
0.886
County
0.243
0.251
0.249
Local School
1.253
1.322
1.402
Library
0.035
0.036
0.034
Assessed Valuation
$
2,464,136,730
$
2,266,200,820
$
2,091,924,774
COMPARATIVE OF LEVIES AND COLLECTION CURRENTLY
A study of this tabulation could indicate a possible trend in future tax levies. A decrease in the percentage of current
collection could be an indication of a probable increase in future tax levies.
Percentage
of
Year
Tax Levy
Cash Collections
Collection
2024
$
56,794,244
$
56,109,200
98.79%
2023
55,415,792
54,881,292
99.04%
2022
53,810,129
53,244,120
98.95%
104
BOROUGH OF NORTH ARLINGTON
SUPPLEMENTARY DATA
DELINQUENT TAXES AND TAX TITLE LIENS
This tabulation includes a comparison, expressed in percentage, of the total of delinquent taxes and tax title liens, in
relation to the tax levies of the last three years.
Amount of
Amount of
December 31
Tax Title
Delinquent
Total
Year
Liens
Taxes
Delinquent
2024
$
59,713
$
631,626
$
691,339
2023
158,745
506,920
665,665
2022
82,513
529,222
611,735
COMPARATIVE SCHEDULE OF FUND BALANCES
Current Fund
2024
2023
2022
105
Balance,
December 31,
$7,248,685
7,994,229
8,113,484
Percentage
of
Tax Levy
1.22%
1.20%
1.14%
Utilized
in Budget of
Succeeding Year
$4,300,000
4,277,766
4,195,000
BOROUGH OF NORTH ARLINGTON
SUPPLEMENTARY DATA
OFFICIALS IN OFFICE AND SURETY BONDS AS OF DECEMBER 31, 2024
Name
Title
Daniel Pronti
Mayor
Mario Karcic
Council President
Allison Sheedy
Council Vice-President
Donna Bocchino
Councilwoman
Lynette Cavadas
Councilwoman
Kirk Del Russo
Councilman
Brian Fitzhenry
Councilman
Stephen Loiacono
Borough Administrator
Kathleen Moore
Borough Clerk
Stephen Sanzari
Chief Financial Officer
Vibha Desai
Acting Tax Collector
Randy Pearce
Municipal Attorney
Joseph C. Angelo
Judge
There is a statutory bond limit in the Municipal Joint Insurance Fund that covers the Treasurer, Tax Collector,
Magistrates, Court Administrators and Court Clerk up to $1,000,000 with a member deductible of $2,500.
106
BOROUGH OF NORTH ARLINGTON
LETTER OF COMMENTS AND RECOMMENDATIONS
GENERAL COMMENTS
Prior Year Unresolved
Our audit indicated several reconciling items are reported on a monthly bank account reconciliations. It is
recommended that reconciling items reported on the monthly bank account reconciliations be reviewed and be
appropriately cleared.
Our audit of the Trust Fund activity revealed that certain trust account activity (i.e. recreation and payroll) is not
recorded in the general ledger system and it is being maintained manually outside of the general ledger system. It
is recommended that all trust fund activities be maintained within the general ledger accounting system.
Our audit revealed that there is no detail listing for the premiums on tax sales balance of $259,552 and the lien
redemption account balance of $97,302. It is recommended that the Borough develop and maintain a detail listing
of the premiums on tax sales and lien redemption account balances.
Our audit of the police outside duty billing revealed that a detailed billing/receivable ledger is not being
maintained only individual billing sheets are being maintained. It is recommended that a detail police outside
duty billing/receivable ledger be maintained.
Current Year
Our audit revealed that there were unrecorded liabilities in the General Capital Fund of $286,098.
It 1s
recommended that the purchase orders are prepared and approved prior to the purchase of goods and services.
Contracts and Agreements Required To Be Advertised For NJS 40a:11-4
NJS 40A: 11-4 states "Every contract or agreement, for the performance of any work or the furnishing or hiring of
any materials or supplies, the cost or the contract price whereof is to be paid with or out of public funds not included
within the terms of Section 3 of this act, shall be made or awarded only 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 $17,500, except by contract or agreement".
The Governing Body of the Borough has the responsibility of determining whether the expenditures in any category
will exceed $17,500 within the 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 no bids were requested by public advertising during 2024.
The minutes indicate that resolutions were adopted and advertised, authorizing the awarding of contracts or
agreements for "Professional Services" perN.J.S.40A:11-5.
Inasmuch as the system of records did not provide for an accumulation of payments for categories for the
performance of any work or the furnishing or hiring of any materials or supplies, the results of such an accumulation
could not reasonably be ascertained. Disbursements were reviewed, however, to determine whether any clear-cut
violations existed.
107
BOROUGH OF NORTH ARLINGTON
LETTER OF COMMENTS AND RECOMMENDATIONS
GENERAL COMMENTS (Continued)
Collection of Interest of Delinquent Taxes and Assessments
The statute provides the method for authorizing interest and the maximum rate to be charged for the non-payment of
taxes or assessments on or before the date when they would become delinquent.
Taxes and Tax Title Liens
A tax sale was held on September 13, 2024.
Year
2024
2023
2022
Number of Liens
3
6
5
It is essential to good management that all means provided by statute be utilized to liquidate tax title liens in order to
get such properties back on a tax paying basis.
Suggestions to Management
•
Non-contractual salaries including Library and Health Department employees be identified and approved by
governing body resolutions.
•
Subsequent taxes on existing municipal tax title liens be transferred appropriately in the tax system.
•
Continued efforts be made to utilize unexpended grant balances.
•
Interfunds due between Borough accounts be promptly liquidated.
•
A payroll deduction ledger be maintained.
•
Old inactive Other Trust reserve balances should be reviewed for potential cancellation.
•
Continued efforts be made to ensure that department cash receipts are properly classified.
•
Review payout policy of sick time with legal counsel as it relates to the State Comptroller's office of
$15,000 lifetime limitation.
•
Consider implementing a policy to reduce the collection of physical cash at the Borough.
108
BOROUGH OF NORTH ARLINGTON
SUPPLEMENTARY DATA
RECOMMENDATIONS
It is recommended that:
*
*
*
*
*
1.
Reconciling items reported on the monthly bank account reconciliations be reviewed and be appropriately
cleared.
2.
A daily cash receipts ledger be maintained by the recreation department, all transaction activity be recorded
in the Borough's trust account and source documents be retained and made available for audit.
3. All trust fund activities be maintained within the general ledger accounting system.
4.
The Borough develop and maintain a detail listing of the premiums on tax sales and lien redemption
account balances.
5.
A detail police outside duty billing/receivable ledger be maintained.
6.
Purchase orders are prepared and approved prior to the purchase of goods and services.
* * * * * * * * * *
Status of Prior Year's Audit Findings/Recommendations
A review was performed on all prior year recommendations and corrective action was taken on all except those
denoted with an asterisk (*).
The problems and weaknesses noted in our review were not of such magnitude that they would affect our ability to
express an opinion on the financial statements taken as a whole.
Should any questions arise as to our comments or recommendations,
r should you desire assistance in
implementing our recommendations, please do not hesitate to call us.
109
CH, VINCI & BLISS, LLP
Certified Public Accountants
Re
unicipal Accountants
~----
c
Municipal Accountant
umber CR000457
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