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Executive Summary
The Borough of Roosevelt's Comprehensive Annual Financial Report (CAFR) for the year ended December 31, 2017, includes financial statements, supplemental schedules, and an independent auditor's report. The report is divided into four sections: Introductory, Financial, Statistical, and Auditor's Comments and Recommendations. The financial statements have been audited by Samuel Klein and Company, who issued an unqualified opinion stating the financial statements are presented fairly in conformity with the basis of accounting prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey.
During 2017, the Borough of Roosevelt experienced both progress and challenges in operational and financial areas. The Current Fund revenues, excluding fund balance utilized, totaled $1,308,744.08, with expenditures of $1,132,431.89. The Water-Sewer Utility Operating Fund generated operating revenues, excluding fund balance, of $840,654.71 and incurred operating expenses of $862,629.82. The Borough Council is actively seeking new and innovative ways to provide cost-efficient services to its residents, such as the contract with an outside service vendor to oversee the operation of the water and sewer utility, in hopes of achieving efficiencies and savings. The transmittal letter is dated August 31, 2018.
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Document Text
--- Document: 2017 - Audit Report Document ---
COMPREHENSIVE ANNUAL FINANCIAL REPORT OF
BOROUGH OF ROOSEVELT
33 North Rochdale Avenue
Roosevelt, New Jersey 08555
FOR THE YEAR ENDED DECEMBER 31, 2017
Presented by
George Lang
Chief Financial Officer
Borough of Roosevelt
BOROUGH OF ROOSEVELT
TABLE OF CONTENTS
YEAR ENDED DECEMBER 31 I 2017
INTRODUCTORY SECTION
Letter of Transmittal
Roster of Officials
Consultants and Advisors
FINANCIAL SECTION
Exhibit
Number
Independent Auditors' Report
Independent Auditors' 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
GENERAL PURPOSE FINANCIAL STATEMENTS
A
Combined Statement of Assets, Liabilities, Reserves and Fund
Balance - All Funds and Accounts - Regulatory Basis
A-1
Combined Statement of Revenues, Expenses and Changes in
Fund Balance - Regulatory Basis - Budget and Actual -
Current and Water-Sewer Utility Operating Funds
A-2
Statement of Change in Fund Balance - General Capital Fund -
Regulatory Basis
A-3
Statement of Change in Fund Balance - Water-Sewer Utility
Capital Fund - Regulatory Basis
Notes to Financial Statements
COMBINING AND INDIVIDUAL FUND AND ACCOUNTS
STATEMENTS
Current Fund:
B
Comparative Statement of Assets, Liabilities and Fund
Balance - Regulatory Basis
B-1
Comparative Statement of Operations and Changes in Fund
Balance - Regulatory Basis
B-2
Statement of Revenues - Regulatory Basis
B-3
Statement of Expenditures - Regulatory Basis
B-4
Statement of Taxes Receivable and Analysis of Property Tax
Levy
B-5
Statement of Tax Title Liens Receivable
1-7
8
9
10-12
13-14
15-16
17-19
20
21
22-62
63-64
65-66
67
68-72
73-74
75
BOROUGH OF ROOSEVELT
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
FINANCIAL SECTION (CONTINUED)
Exhibit
Number
COMBINING AND INDIVIDUAL FUND AND ACCOUNTS
STATEMENTS (CONTINUED)
Current Fund (Continued):
B-6
Statement of 2016 Appropriation Reserves
B-7
Statement of Local District School Taxes Payable
B-8
Statement of Grants Receivable - Grant Fund
B-9
Statement of Appropriated Reserves - Grant Fund
Trust and Agency Fund:
C
Combining Balance Sheets - Regulatory Basis
C-1
Statement of Reserve for Animal Control Expenditures
C-2
Statement of Reserve for Trust Deposits
C-3
Statement of Payroll Deductions
General Capital Fund:
D
Comparative Statement of Assets, Liabilities, Reserves and
Fund Balance - Regulatory Basis
D-1
Analysis of Cash and Cash Equivalents
D-2
Statement of Intergovernmental Accounts Receivable
D-3
Statement of Deferred Charges to Future Taxation, Unfunded
D-4
Statement of Improvement Authorizations
D-5
Statement of Capital Improvement Fund
D-6
Statement of Bonds Payable
D-7
Statement of Bonds and Notes Authorized but Not Issued
Water-Sewer Utility Operating Fund:
E
Comparative Statement of Assets, Liabilities, Reserves and
Fund Balance - Regulatory Basis
E-1
Comparative Statement of Operations and Change
in
Operating Fund Balance - Regulatory Basis
E-2
Statement of Revenues - Regulatory Basis
E-3
Statement of Expenditures - Regulatory Basis
E-4
Statement of Consumer Accounts Receivable
E-5
Statement of 2016 Appropriation Reserves
E-6
Schedule of Accrued Interest on Bonds and Loans
76-77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93-94
95
96
97
98
99
100
BOROUGH OF ROOSEVELT
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
FINANCIAL SECTION (CONTINUED)
Exhibit
Number
COMBINING AND INDIVIDUAL FUND AND ACCOUNTS
STATEMENTS (CONTINUED)
Water-Sewer Utility Capital Fund:
F
Comparative Statement of Assets, Liabilities, Reserves and
Fund Balance - Regulatory Basis
F-1
Analysis of Cash and Cash Equivalents
F-2
Statement of Fixed Capital
F-3
Statement of Fixed Capital Authorized and Uncompleted
F-4
Statement of Loans Payable - MCIA
F-5
Statement of Loans Payable - NJEIT
F-6
Statement of Farmer's Home Administration Loans
F-7
Statement of Bond Anticipation Notes
F-8
Statement of Improvement Authorizations
F-9
Statement of Bonds and Notes Authorized But Not Issued
Capital Asset:
G
Comparative Statement of Capital Assets
STATISTICAL SECTION
H-1
H-2
H-3
H-4
H-5
H-6
H-7
H-8
H-9
H-10
H-11
H-12
H-13
Current Fund Expenditures by Function
Current Fund Revenues by Function
Water-Sewer Utility Operating Fund Expenditures by Function
Property Tax Rates Per $100 of Assessed Valuation
Municipal Property Tax Levies and Collections
Delinquent Taxes and Tax Title Liens
Assessed and Estimated Actual Value of Taxable Property
Schedule of Ten Largest Taxpayers
Computation of Legal Debt Margin
Ratio of Bonded Debt, Bond Anticipation Notes and Loans to
Equalized Value and Net Debt Per Capita
Calculation of "Self-Liquidating Purpose" Per N.J.S. 40A:2-45 -
Water-Sewer Utility Operating Fund
Demographic Statistics
Miscellaneous Statistics
101-102
103
104
105
106
107-109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
BOROUGH OF ROOSEVELT
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
AUDITOR'S COMMENTS AND RECOMMENDATIONS
General Comments:
Contracts and Agreements Required to be Advertised for N.J.S. 40A: 11-4
Collection of Interest on Delinquent Taxes and Utility Charges
Delinquent Taxes and Tax Title Liens
Water-Sewer Utility Receivables
Cash Balances
Revenues
Expenditures
Payroll
Miscellaneous Comments
Surety Bond Coverage
Municipal Court
Technical Directives - State of New Jersey
I nterfund Receivable/Payable
Other Matters
Appreciation
Following-up on Prior Year Recommendation
Recommendations
128
129-130
130
130
130
131
131
131
131
131
131
131
132
132
132
133
INTRODUCTORY SECTION
Borough of Roosevelt
:fa,rw:.y d-/omatuuk d-/ldoT.f.a 'hi5..br.f.at
P.O. BOX 128
o 33 N. ROCHDALE AVE. • ROOSEVELT, NEW JERSEY 08555
OFFICE: {609) 448-0539 • FAX: (609) 448-8716
August 31, 2018
TO:
The Honorable Mayor and Council Members
RE:
Comprehensive Annual Financial Report for the
Year Ended December 31, 2017
The Comprehensive Annual Financial Report for the Borough of Roosevelt, County of
Monmouth, State of New Jersey, is submitted herewith and includes financial statements and
supplemental schedules. I believe that it is accurate in all material respects; that it is presented
in a manner designed to set forth fairly the financial position and results of operations of the
Borough of Roosevelt as measured by the financial activity of its various funds and account
groups; and that all disclosures necessary to enable the reader to gain maximum understanding
of the Borough's financial affairs have been included.
The Comprehensive Annual Financial Report (CAFR) is presented in four (4) sections:
Introductory, Financial, Statistical and Auditor's Comments and Recommendations.
The
Introductory Section includes this transmittal letter, the Borough's Organizational Chart and a
Roster of Officials.
The Financial Section includes the annual financial statements and
individual fund financial schedules, as well as the Independent Auditors' Report. ·The Statistical
Section includes selected financial, economic and demographic information, generally
presented on a multi-year basis.
Responsibility for completeness and clarity of the report,
including disclosures, rests with the Chief Financial Officer and ultimately with the Mayor and
Council. The fourth and final section is prepared by the Independent Auditor ·and contains their
required annual comments and recommendations, if any, to the Mayor and Council. The Mayor
and Council are required to adopt a plan of action on the implementation of any audit
recommendations.,
The financial statements have been audited by Gerard Stankiewicz, CPA, RMA of Samuel Klein
and Company, Certified Public Accountants, whose opinion is expressed in the Financial
Section.
Please note that the Independent Auditors' Report on the regulatory basis is
unqualified and states that the financial statements - regulatory basis, are presented fairly in
conformity with the basis of accounting as prescribed by the Division of Local Government
Services, Department of Community Affairs, State of New Jersey.
- 1 -
PRESENT AND FUTURE CHALLENGES
During the 2017 calendar year, the Borough of Roosevelt has made progress in a number of
operational and financial areas; however, this administration is clearly aware of the issues and
problems that continue to demand our attention and improvement. While we take pride in the
accomplishments of the past year, we are mindful of the issues that continue to face us.
CURRENT FUND
In 2017, our Current Fund, which encompasses the general government functions of the
Borough had revenues, exclusive of fund balance utilized of $1,308,744.08 expenditures of
$1,132,431.89 and an increase of $165,261.69 in fund balance at year-end. The increase was
caused by interfund advance charges to fund balance that created revenues. The Current
Fund total revenues increased approximately $190,369.85, or 13.01% compared to 2016
caused primarily by increases in other credits.
lncrease/~Decrease
~
2017
2016
Amount
Percent
Local Sources:
Fund Balance Utilized
$
345,000.00
$
391,000.00
$
(46,000.00)
(11.76) %
Current Tax Revenue
762,496.52
759,772.78
2,723.74
0.36
Delinquent Tax Revenue
48,904.30
45,169.46
3,734.84
8.27
Miscellaneous Revenues Anticipated
15,085.00
(15,085.00)
(100.00)
NonbudgetRevenues
43,869.53
35,422.11
8,447.42
23.85
Other Credits to Income
367,087.08
118,075.88
249,011.20
210.89
Total Revenues from Local Sources
$ 1,567 ,357.43
$ 1,364,525.23
$
202,832.20
14.86 %
State Aid
81,849.00
81,849.00
0.00
0.00
Grants
4,537.65
17,000.00
~12,462.35~
(73.31~
Total Current Fund Revenues
$ 1,653,744.08
$ 1,463,374.23
$
190,369.85
13.01 %
1. Current and Delinquent Taxes - These are the collections on taxes levied on all property
owners residing in the Borough.
2. State Aid and Grants - This represents funds received from the State of New Jersey or the
Federal Government in the form of grants or direct aid.
3. Miscellaneous Revenues Anticipated - This represents all of the miscellaneous revenues of
the Borough including fees, fines, licenses, interest and other direct charges, except those
detailed separately above.
4. Nonbudget Revenue and Other Credits - These are items that are not budgeted as revenue
items, however, are included in the overall revenue.
- 2 -
The decrease in expenditures in 2017 compared to 2016 was $33,767.57 or 2.90%. Below is a
comparison of the Current Fund expenditures:
lncrease/~Decrease)
2017
2016
Amount
Percent
Within "CAPS":
General Government
$
359,486.00
$
326,187.00
$
33,299.00
10.21 %
Land Use
30,700.00
30,693.00
7.00
0.02
Insurance
58,500.00
41,356.00
17,144.00
41.45
Public Works
123,250.00
150,170.00
(26,920.00)
(17.93)
Health and Human Services
16,200.00
16,700.00
(500.00)
(2.99)
Parks and Recreation
29,200.00
28,442.00
758.00
2.67
Utilities
29,500.00
37,200.00
(7,700.00)
(20.70)
Other Common Functions
1,500.00
2,000.00
(500.00)
(25.00)
Public Safety
38,600.00
52,750.00
(14,150.00)
(26.82)
Sanitation
32,000.00
31,000.00
1,000.00
3.23
Deferred Charges and Statutory
Expenditures
78,000.00
60,445.00
17,555.00
29.04
Total Expenditures within "CAPS"
$
796,936.00
$
776,943.00
$
19,993.00
2.57 %
Outside "CAPS":
Insurance
$
144.00
$
(144.00)
(100.00) %
Public Safety
$
26,171.00
7,421.00
18,750.00
252.66
Sanitation
65,660.00
64,400.00
1,260.00
1.96
General Government
36,400.00
(36,400.00)
100.00
Grants
4,537.65
17,000.00
(12,462.35)
(73.31)
Capital Improvements
30,000.00
45,000.00
(15,000.00)
(33.33)
Deferred Charges and Statutory
Expenditures
15,377.24
24,891.46
(9,514.22)
(38.22)
Debt Service
13,750.00
14,000.00
(250.00)
(1. 79)
Total Expenditures outside 'CAPS"
$
155,495.89
$
209,256.46
$
(53, 760.57)
(25.69) %
Reserve for Uncollected Taxes
$
180,000.00
$
180,000.00
$
0.00
0.00
$
1,132,431.89
$
1,166,199.46
$
(33,767.57)
(2.90) %
For the foreseeable future, our elected and appointed leaders will have to deal with the need to
maintain stable tax rates, and deal with serious water-sewer infrastructure problems.
The
governing body and the administration will have to introduce new ideas and creative solutions to
solve these problems.
The remainder of this transmittal letter will provide greater details relating to our progress during
2017 and some of our plans for the future.
- 3 -
WATER-SEWER UTILITY FUND
Our Water-Sewer Utility Operating Fund generated operating revenues exclusive of fund
balance $840,654. 71 and incurred operating expenses of $862,629.82. The decrease in
operating expenses from 2017 to 2016 was $45,808.61 or 5.04%. , Fund balance increased
$21,975.11. The following schedule summarizes revenues and expenses for 2017 and 2016.
lncrease/~Decrease)
2017
2016
Amount
Percent
Revenues
Fund Balance Utilized
$
21,975.11
61,059.09
$
(39,083.98)
(64.01) %
Rents
713,820.20
$
743,887.34
(30,067.14)
(4.04)
Cell Tower Fees
79,612.29
75,874.11
3,738.18
4.93
Deficit General Budget
20,231.88
Interest on Delinquent Rents
10,254.58
10,215.77
38.81
0.38
Nonbudget Revenue
111.57
146.14
(34.57)
(23.66)
Other Credits to Income:
Unexpended Balance of
Appropriation Reserves
16,624.19
39,231.09
(22,606.90)
(57.62)
$
862,629.82
$
930,413.54
$
(88,015.60)
(9.46) %
Expenditures
Operating
$
566,349.33
$
612,456.00
$
(46, 106.67)
(7.53) %
Capital Improvements
14,500.00
(14,500.00)
(100.00)
Debt Service
273,709.49
257,782.43
15,927.06
6.18
Deferred Charges and
Statutory Expenditures
22,571.00
23,700.00
~1,129.00)
~4.76)
$
862,629.82
$
908,438.43
$
(45,808.61)
(5.04) %
STATUTORY AUTHORITY
The Borough is organized and administered in accordance with the provisions of New Jersey
State Law and consists of an elected Mayor and a six (6) member Council responsible for
providing all basic governmental services, except education, to its 882 local residents.
The Borough, pursuant to law, has the authority to levy taxes and issue debt.
In accordance with accounting principles generally accepted in the United States of America, as
prescribed by the Governmental Accounting Standards Board, the Borough, for reporting entity
determination purposes, is considered an independent government entity.
- 4 -
MAJOR ACTIVITIES AFFECTING BUDGET/FINANCIAL CONDITIONS
The Borough Council is actively involved in all decisions of the operation of the Borough and
has expressed a genuine concern for all residents.
The Governing Body is consistently
searching for new and innovative ways to provide cost efficient services to its residents.
The Borough maintains its own Water and Sewer Treatment Plant.
The Borough's Water-Sewer Utility Budget is always under review and evaluation of the user
charges to support the budget is done frequently in order for the utility to remain solvent. Major
repairs and upkeep are done after careful scrutiny and with great concern by the Borough's
Governing Body.
The Borough also annually appropriates funds for road reconstruction; however, the funding
mix usually includes NJDOT grants.
The Borough provides for emergency response dispatching through Monmouth County 911.
The Borough of Roosevelt is unique in that it was designated as a historic district by the State
of New Jersey since the forefathers of the town were part of a social experiment in the 1930's
post-depression era.
The Borough is trying to maintain the charming character of the
community as the millennium began.
The Borough is also known for many of its artistic
residents.
The Borough recently after much study and thought entered into a contract with an outside
service vendor to oversee the operation of the water and sewer utility. It is anticipated that
there will be operational efficiencies and savings.
The Borough is a participant in the State of New Jersey Infrastructure Trust, NJI Bank, a low
interest loan program which is utilized to do major repairs to the Borough water tower.
CASH MANAGEMENT
Bank balances are insured up to $250,000.00 in the aggregate by the Federal Deposit
Insurance Corporation for each bank.
In addition, the State of New Jersey Unit Deposit
Protection Act insures the remaining balance of funds on deposit in registered depositories. At
December 31, 2017, all cash funds on deposit were in registered depositories and were
covered by these insurers.
The Borough invests all surplus funds for appropriate periods of time as determined by the
Chief Financial Officer. During 2017, idle funds were invested in a money market fund. The
Chief Financial Officer of the Borough monitors available cash balances for investment on an
ongoing basis in order to maximize earnings on invested cash. The Borough has not entered
into any compensating balance agreements.
- 5 -
ACCOUNTING AND BUDGET INFORMATION
Accounting
The Borough maintains a computerized accounting system to record all financial transactions.
In developing and evaluating the Borough's accounting system, consideration is given to the
adequacy of internal accounting controls. Internal accounting controls are designed to provide
reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss
from unauthorized use or disposition; and (2) the reliability of financial records for preparing
financial statements and maintaining accountability for assets.
The concept of reasonable
assurance recognizes that (1) the cost of controls should not exceed the benefits expected to
be derived; and (2) the evaluation of costs and benefits requires estimates and judgment by
management.
Management of the Borough is responsible for establishing and maintaining an adequate
internal control structure.
Budget
The local budget law for the State of New Jersey requires every local unit to adopt an Operating
Budget in the form required by the Division of Local Government Services (the "Division"),
Department of Community Affairs of the State of New Jersey. Certain items of revenue and
appropriation are regulated by law and the proposed budget must be certified by the Director of
the Division prior to final adoption. The Budget Law requires each local unit to appropriate
sufficient funds for the payment of current debt service, and the Director is required to review
the adequacy of such appropriations, unless a specific amount is required by law. The review
function, focusing on anticipated revenues, serves to protect the solvency of all local units.
Section 5:30-4 of the New Jersey Administrative Code provides that every local unit that
proposes to spend $25,000.00 or more on capital equipment, construction or improvements
must prepare a Capital Budget.
If the Borough's population exceeds 10,000 the Capital
Program shall include by title all projects anticipated for the budget year and the five
succeeding years, with the estimated costs and the anticipated financing by sources and
amounts.
A Capital Budget Section included with the Annual Budget does not in itself confer any
authorization to raise or expend funds. Rather, it is a document used as part of the local unit's
planning and management program.
Specific authorization to expend funds for purposes
described in the Capital Budget must be granted separately, through the adoption of a bond
ordinance, by appropriating funds from the Capital Improvement Fund, or other lawful means.
The budget of the Borough is categorized into appropriations by function. Each appropriation
represents a service program or division within the Borough. Funds are appropriated to each of
the budget lines by the Mayor and Council in accordance with procedures prescribed by the
State of New Jersey Local Budget Law.
- 6 -
Distinct appropriations are required for "salaries and wages" and for "other expenses". The
Borough delineates each appropriation into sub accounts by budget codes.
The Chief Financial Officer monitors expenditures throughout the fiscal year to ensure that
spending remains within the amounts of funds authorized. Budget modifications are processed
in the last two months of the year to transfer funds from one area to another as needed.
DEBT ADMINISTRATION
The authorized bonded indebtedness of municipalities in the State of New Jersey is limited by
statute to an amount equal to 3%% of their equalized value. The equalized valuation basis of
the Borough is set by statute as the average for the last three years of the equalized value of all
taxable real property and improvements and certain railroad property within its boundaries as
annually determined by the State Board of Taxation.
The Borough has gross debt authorized and outstanding of $4,374,768.40 of which
$4, 187,518.40 is attributed to the Water-Sewer Utility and $187,250 is attributed to the General
Capital Fund.
RISK MANAGEMENT
The Borough, like many other municipalities in the early '80's, was faced with an insurance
crisis. It was unable to obtain coverage at any price. The Borough banded together with other
municipalities to form the Monmouth County Municipal Joint Insurance and the New Jersey
Municipal Excess Liability Funds. These Funds procure insurance on a pooled basis, generally
self-insuring the initial level of loss for workers' compensation, property, general liability and
automobile. The Funds provide their members with risk management services, including the
defense of and settlement of claims and establish reasonable and necessary loss reduction and
prevention procedures to be followed by the members.
ACKNOWLEDGMENTS
The preparation of this report on a timely basis could not be accomplished without the efficient
and dedicated services of the entire staff of the Administration Department and the Finance
Department. I would also like to express my appreciation to Gerard Stankiewicz, CPA, RMA of
Samuel Klein and Company for his help and assistance in preparation of the Borough's CAFR.
Respectfully submitted,
George Lang
Chief Financial Officer
- 7 -
BOROUGH OF ROOSEVELT
ROSTER OF OFFICIALS
DECEMBER 31 I 2017
Governing Body
Peggy Malkin, Mayor (effective August 14, 2017)
Council President (through August 14, 2017)
Jeff Ellentuck, Mayor (through August 14, 2017)
Michael Ticktin, Council Member (through August 18, 2017)
Michael Hamilton, Council Member
Jill Lipotti, Council Member (through August 14, 2017)
Stacey Bonna, Council Member (through August 14, 2017)
Joseph Trammel, Council Member
Cody Parker, Council Member (effective December 11, 2017)
Maureen Parrot, Council Member (effective September 25, 2017)
Robin Phillips, Council Member (effective September 25, 2017)
Nick Murray, Council Member (September 25, 2017 through November 7, 2017)
Deirdre Sheean, Council Member (effective November 17, 2017)
Other Officials
Kathleen Hart, Borough Clerk
George J. Lang, Chief Financial Officer
Ana Debevec, Treasurer
Salvatore P. Cannizzaro, Tax Collector and Water-Sewer Utility Collector
Donna Taylor, Tax Assessor
Michael Samuel - R3M, Borough Utility Engineer
Roberts Engineering Group, LLC, Borough Engineer
Richard Shaklee, Borough Attorney (through September 25, 2017)
Ira Karasick, Borough Attorney (effective September 25, 2017 through December 31, 2017)
Nicole Sonnenblick, Municipal Court Judge
Diane Canzanella, Municipal Court Administrator
Michele Donato, Planning Board Attorney
- 8 -
BOROUGH OF ROOSEVELT
CONSULTANTS AND ADVISORS
DECEMBER 31, 2017
AUDIT FIRM
Gerard Stankiewicz, CPA, RMA, PSA
of the firm
Samuel Klein and Company
36 West Main Street
Suite 303
Freehold, New Jersey 07728
ATTORNEY
Ira Karasick
460 Bloomfield Ave
Montclair, NJ 07042
BOND COUNSEL
Gluck Walrath LLP
11 Wharf Avenue
Red Bank, NJ 07701
OFFICIAL DEPOSITORY
1st Constitution Bank
- 9 -
FINANCIAL SECTION
SAMUEL KLEIN AND COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
550 13HOAD STREET, 11 TH FLOOR
NEWARK. N.J. 07102-9969
PHONE (973) 624-6100
FAX (973) 624-6101
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and Members
of the Borough Council
Borough of Roosevelt
County of Monmouth
State of New Jersey
To the Honorable Mayor and Members of the Borough Council:
Report on the Financial Statements
36 WEST MAIN STREET, SUITE 303
FREEHOJ,D, N.J. 07728-2291
PHONE (732) 780-2600
FAX (732) 780-1030
We have audited the financial statements - regulatory basis of the various funds and account
groups of the Borough of Roosevelt, County of Monmouth, State of New Jersey as of December
31, 2017, and the related statement of operations and change in fund balance - regulatory
basis for the year then ended, the related statement of revenues - regulatory basis, statement
of expenditures - regulatory basis, and the related notes to the financial statements for the year
then ended.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements -
regulatory basis, in accordance with accounting principles and practices
prescribed by the Division of Local Government Services, Department of Community Affairs,
State of New Jersey; this includes the design, implementation and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements - regulatory basis,
based on our audit. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United
States and auditing standards prescribed by the Division of Local Government Service,
Department of Community Affairs, State of New Jersey. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
www.samuelkleln-cpa-rma.com
- 10 -
INDEPENDENT AUDITORS' REPORT (CONTINUED)
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements.
The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error.
In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal control.
Accordingly, we express no such opinion.
An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note 1 of the financial statements - regulatory basis, the financial statements
are prepared by the Borough on a basis of the financial reporting provisions of the regulatory
basis of the accounting and budget laws of the Division of Local Government Services,
Department of Community Affairs, State of Jersey which is a basis of accounting other than
accounting principles generally accepted in the United States of America, to meet the
requirements of the State of New Jersey.
The effects on the financial statements of the variances between the regulatory basis of
accounting described in Note 1 and accounting principles generally accepted in the United
States of America, although not reasonably determinable, are presumed to be material.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matters discussed in the "Basis for Adverse
Opinion on the United States Generally Accepted Accounting Principles" paragraph, the
financial statements referred to above do not present fairly in accordance with accounting
principles generally accepted in the United States of America, the financial position of each fund
of the Borough of Roosevelt, County of Monmouth, State of New Jersey as of December 31,
2017, and change in financial position or cash flows thereof for the year then ended.
Opinion on Regulatory Basis of Accounting
In our opinion, the financial statements referred to above present fairly, in all material respects
the financial statements - regulatory basis of the various funds and account groups of the
Borough of Roosevelt, County of Monmouth, State of New Jersey, as of December 31, 2017,
and the results of its operations and change in fund balance of such funds - regulatory basis for
the year then ended, and the revenues - regulatory basis, expenditures - regulatory basis of
the various funds and account groups for the year ended December 31, 2017 in conformity with
accounting principles and practices prescribed by the Division of Local Government Services,
Department of Community Affairs, State of New Jersey as described in Note 1.
- 11 -
INDEPENDENT AUDITORS' REPORT (CONTINUED)
Other Matters
Report on Supplementary Information
Our audit was made for the purpose of forming an oprrnon on the financial statements -
regulatory basis referred to in the first paragraph as a whole.
The supplemental financial
statements presented for the various funds are presented for purposes of additional analysis as
required by the Division of Local Government Services, Department of Community Affairs, State
of New Jersey and is not a required part of the above 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. Such information has
been subjected to the auditing procedures applied in the audit of the financial statements and
certain additional procedures, including comparing the reconciling such information directly to
the underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the information is
fairly stated in all material respects in relation to the financial statements of each of the
respective individual funds and account group taken as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
August 31, 2018, on our consideration of the Borough of Roosevelt's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe
the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the Borough of Roosevelt's internal control
over financial reporting and compliance.
Freehold, New Jersey
August 31, 2018
-~
Gerard Stankiewicz
Certified Public Accountant
Registered Municipal Accountant #431
SAMUEL KLEIN AND COMPANY
- 12 -
SAMUEL KLEIN AND COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
550 BROAD STREET, 11 TH FLOOR
NEWARK, N.cJ. 07102·99<39
PHONE (973) <324-6100
FAX (97~"3) <324-<3101
36 WEST MAIN STREET, SUITE 303
FREEHOLD, N.J. 07728-2291
PHONE (732) 780·2<300
FAX (732) 780-10:30
INDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED
ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
The Honorable Mayor and Members
of the Borough Council
Borough of Roosevelt
County of Monmouth
State of New Jersey
To the Honorable Mayor and Members of the Borough Council:
We have audited, in accordance with the auditing standards generally accepted in the United
States of America, the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States and audit
requirements as prescribed by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey, the financial statements - regulatory basis of the
Borough of Roosevelt (herein referred to as "the Borough"), as of and for the year ended
December 31, 2017, and the related notes to the financial statements, which collectively
comprise the Borough's basic financial statements, and have issued our report thereon dated
August 31, 2018.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements -
regulatory basis, we
considered the Borough's internal control over financial reporting (internal control) to determine
the audit procedures that are appropriate in the circumstances for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the Borough's internal control. Accordingly, we do not express an opinion on
the effectiveness of the Borough's internal control.
MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
www.samuelklein-cpa-rma.com
- 13 -
INDEPENDENT AUDITORS 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 (CONTINUED)
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis.
A material weakness is a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be prevented,
or detected and corrected on a timely basis.
A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Borough's financial statements -
regulatory basis are free of material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts and grants, noncompliance with which could
have a direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances
of noncompliance that are required to be reported under Government Auditing Standards.
However, we noted certain immaterial instances of non-compliance that we have reported to the
management of the Borough in the "General Comments and Recommendations" section of this
report.
This report is intended solely for the information of the governing body, management and the
Division of Local Government Services, Department of Community Affairs, State of New Jersey
and is not intended to be and should not be used by anyone other than these specified parties.
Freehold, New Jersey
August 31, 2018
'
r
.5:1·
•· t~
Gerard Stankiewicz
Certified Public Accountant
Registered Municipal Accountant #431
SAMUEL KLEIN AND COMPANY
- 14 -
GENERAL-PURPOSE FINANCIAL STATEMENTS
ASSETS AND OTHER DEBITS
Cash and Cash Equivalents
Intergovernmental Accounts Receivable
Receivables and Other Assets:
Delinquent Property Taxes Receivable
Tax Title Liens
Foreclosed Property
Consumer Accounts Receivable
->.
lnterfunds Receivable
01
Revenue Accounts Receivable
Deferred Charges
Fixed Capital
Fixed Assets
Grant Fund:
Grants Receivable
lnterfunds Receivable
Total Assets and Other Debits
BOROUGH OF ROOSEVELT
COMBINED STATEMENT OF ASSETS, LIABILITIES, RESERVES AND FUND BALANCE -
ALL FUNDS AND ACCOUNT GROUPS - REGULATORY BASIS
DECEMBER 31, 2017
(WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2016)
Governmental Funds
Current
$ 1,269,223.23
66,543.49
181,700.00
189,413.11
300.00
2,893.19
32,044.60
$ 1,742,117.62
General
Capital
$ 116,226.01
15,983.04
187,250.00
$ 319,459.05
Trust and
Agency
$ 36,493.24
12,720.11
$ 49,213.35
Water-Sewer Utility
Operating
Capital
$
44,311.25 $
2, 179.12
258,075.00
105,516.48
257,977.73
7,438,533.31
$ 407,805.46 $ 7,698,787.43
See Notes to Financial Statements.
$
$
Capital Assets
Account Group
2,451,472.98
2,451,472.98
$
Exhibit A
Sheet 1of2
Totals
Memorandum Only
2017
2016
1,468,432.85
$
1,087,644.61
258,075.00
263,718.60
66,543.49
39,809.83
9,094.47
181,700.00
181,700.00
105,516.48
83,312.52
476,093.99
866,819.34
300.00
1,135.04
187,250.00
237,250.00
7,438,533.31
7,438,533.31
2,451,472.98
2,451,472.98
2,893.19
5,893.19
32,044.60
31,703.78
$ 12,668,855.89
$ 12,698,087.67
LIABILITIES, RESERVES AND
FUND BALANCE
Liabilities and Reserves:
Appropriation Reserves
Other Liabilities and Reserves
Bond Anticipation Notes
Loans Payable
Improvement Authorizations
-"
lnterfunds Payable
O>
Reserve for Amortization
Reserve for Receivables and
Other Assets
Grant Fund:
Reserve for Encumbrances
Appropriated Reserves
Total Liabilities and Reserves
Equity and Other Credits:
Investment in Capital Assets
Fund Balance
Total Equity and Other Credits
Total Liabilities, Reserves and
Fund Balance
BOROUGH OF ROOSEVELT
COMBINED STATEMENT OF ASSETS. LIABILITIES, RESERVES AND FUND BALANCE·
ALL FUNDS AND ACCOUNT GROUPS • REGULA TORY BASIS
DECEMBER 31, 2017
(WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2016)
Governmental Funds
Current
$
171,751.57
461,060.23
32,044.60
437,956.60
4,751.50
30,186.29
$ 1,137,750.79
$
604,366.83
$
604,366.83
$ 1,742,117.62
General
Capital
205,446.65
112,156.43
$ 317,603.08
$
1,855.97
$
1,855.97
$ 319,459.05
Trust and
Agency
38,162.85
11,050.50
$ 49,213.35
$ 49,213.35
Water-Sewer Utility
Operating
Capital
44,934.44
66,271.82
12,545.00
376,150.00
2,990,956.40
793,237.39
191,082.72
273,960.77
3,251,014.91
105,516.48
$ 407,805.46 $
7,697,864.47
$
922.96
$
922.96
$ 407,805.46 $
7,698,787.43
See Notes to Financial Statements.
$
$
$
Capital Assets
Account Group
2,451,472.98
2,451,472.98
2,451,472.98
$
$
$
$
Exhibit A
Sheet2 of 2
Totals
Memorandum Only
2017
2016
216,686.01
$
181,328.41
783,486.55
666,214.58
376,150.00
2,990,956.40
3,176,166.94
905,393.82
995,793.22
508,138.59
898,523.12
3,251,014.91
3,065,804.37
543,473.08
761,327.90
4,751.50
5,510.00
30,186.29
32,086.97
9,610,237.15
$
9,782,755.51
2,451,472.98
$
2,451,472.98
607,145.76
463,859.18
3,058,618.74
$
2,915,332.16
$ 12,668,855.89
$ 12,698,087.67
ExhibitA-1
Sheet 1 of 3
BOROUGH OF ROOSEVELT
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE - REGULATORY BASIS
BUDGET AND ACTUAL- CURRENT AND WATER-SEWER UTILITY OPERATING FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017
Current Fund
Water-Sewer Utili!}'. O~erating Fund
Variance
Variance
Final
Favorable
Final
Favorable
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
Revenues:
Fund Balance Anticipated
$
345,000.00
345,000.00
21,975.11
21,975.11
Water-Sewer Rents
$
743,887.34
713,820.20
$
(30,067.14)
Miscellaneous Revenues
10,000.00
$
(10,000.00)
86,089.88
89,866.87
3,776.99
State Aid
81,849.00
81,849.00
Deficit (General Budget)
46,000.00
20,231.88
(25,768.12)
Grants
4,537.65
4,537.65
->.
$
441,386.65
$
431,386.65
$
(10,000.00)
$
897,952.33
$
845,894.06
$
(52,058.27)
--..I
Receipts from Delinquent Taxes
43,000.00
48,904.30
5,904.30
Amount to be Raised by Taxes for Support
of Municipal Budget:
Local Tax for Municipal Purposes Including
Reserve for Uncollected Taxes
648,045.24
762,496.52
~451.28
Budget Totals
$
1, 132,431.89
$
1,242,787.47
$
110,355.58
$
897,952.33
$
845,894.06
$
(52,058.27)
NonbudgetRevenue
43,869.53
43,869.53
111.57
111.57
Taxes Allocated to School and County
1,839,881.43
1,839,881.43
Other Credits to Income
367,087.08
367,087.08
16,624.19
___!§..624.19
Total Revenues
$
1, 132,431.89
$
3,493,625.51
$
2,361, 193.62
$
897,952.33
$
862,629.82
$
(35,322.51)
See Notes to Financial Statements.
__,.
CX>
BOROUGH OF ROOSEVELT
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE- REGULATORY BASIS
BUDGET AND ACTUAL - CURRENT AND WATER-SEWER UTILITY OPERA TING FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017
Exhibit A-1
Sheet 2 of 3
Current Fund
Water-Sewer Utility Operating Fund
Expenditures:
Current:
Within "CAPS":
General Government
$
Land Use
Insurance
Public Safety
Public Works
Health and Human Services
Parks and Recreation
Utilities
Other Common Functions
Sanitation
Deferred Charges and Statutory Expenditures
Excluded from "CAPS":
Public Safety
Sanitation
Grants
Operating
Capital Improvements
Debt Service
Deferred Charges and Statutory Expenditures
Reserve for Uncollected Taxes
Total Budget Expenditures
$
Final
Budget
Actual
359,486.00
359,486.00
30,700.00
30,700.00
58,500.00
58,500.00
38,600.00
38,600.00
123,250.00
123,250.00
16,200.00
16,200.00
29,200.00
29,200.00
29,500.00
29,500.00
1,500.00
1,500.00
32,000.00
32,000.00
78,000.00
78,000.00
26,171.00
26,171.00
65,660.00
65,660.00
4,537.65
4,537.65
30,000.00
30,000.00
13,750.00
13,750.00
15,377.24
15,377.24
180,000.00
~000.00
1, 132,431.89
$
1,132,431.89
See Notes to Financial Statements.
Variance
Favorable
(Unfavorable)
Final
Budget
$
601,349.33
274,032.00
22,571.00
$
897,952.33
Actual
566,349.33
273,709.49
22,571.00
$ 862,629.82
$
Variance
Favorable
(Unfavorable)
35,000.00
322.51
$
35,322.51
...>.
<O
BOROUGH OF ROOSEVELT
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE - REGULATORY BASIS
BUDGET AND ACTUAL - CURRENT AND WATER-SEWER UTILITY OPERATING FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017
ExhibitA-1
Sheet 3 of 3
Current Fund
Water-Sewer Utility Operating Fund
Expenditures (Continued):
County Taxes including County Added
and Omitted
Local District School Taxes
lnterfund Advanced
Total Expenditures
Excess/(Deficit) in Revenues Over/(Under)
Expenditures
Fund Balance, January 1, 2017
Decreased By:
Utilization as Anticipated Revenue
Fund Balance, December 31, 2017
Final
Budget
Actual
$
253,481.43
1,586,400.00
11,050.50
Variance
Favorable
(Unfavorable)
$
(253,481.43)
(1,586,400.00)
(11,050.50)
$
1,132,431.89
$
2,983,363.82
$ (1,850,931.93)
$
510,261.69
$
510,261.69
439, 105.14
439,105.14
$
949,366.83
$
949,366.83
345,000.00
345,000.00
$
604,366.83
$
604,366.83
See Notes to Financial Statements.
Final
Budget
$
897,952.33
Actual
$
862,629.82
$
21,975.11
21,975.11
21,975.11
$
$
Variance
Favorable
(Unfavorable)
35,322.51
21,975.11
21,975.11
21,975.11
BOROUGH OF ROOSEVELT
GENERAL CAPITAL FUND
STATEMENT OF CHANGE IN FUND BALANCE -
REGULATORY BASIS
BALANCE. DECEMBER 31. 2016
BALANCE. DECEMBER 31. 2017
(There was no change during the year.)
See Notes to Financial Statements.
- 20 -
Exhibit A-2
$
1,855.97
========
BOROUGH OF ROOSEVELT
WATER-SEWER UTILITY CAPITAL FUND
STATEMENT OF CHANGE IN FUND BALANCE -
REGULATORY BASIS
BALANCE, DECEMBER 31 I 2016
BALANCE, DECEMBER 31, 2017
(There was no change during the year.)
See Notes to Financial Statements.
- 21 -
Exhibit A-3
$
922.96
=====
NOTES TO FINANCIAL STATEMENTS
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2017
Note 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A Reporting Entity - The Borough of Roosevelt is located in Western Monmouth
County approximately forty-five (45) miles southwest of the City of New York and
fifty (50) miles northeast of the City of Philadelphia. The population, according to
the 2010 census, is 882.
The Borough of Roosevelt operates under the Borough form of government. The
governing body consists of a Mayor and six Council members. All action is
passed by a majority or, when required, a two-thirds (2/3) vote of the Council.
The Mayor votes only in the event of a tie. The Mayor has veto power over all
ordinances passed by the Borough Council. This veto can be overridden by a
two-thirds (2/3) vote of the Council.
B. Description of Funds - The Governmental Accounting Standards Board (GASB)
is the recognized standard setting body for establishing governmental accounting
and financial reporting principles. The GASB establishes funds 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 financial statements of the Borough of Roosevelt contain all funds and
account groups in accordance with the "Requirements of Audit" as promulgated
by the State of New Jersey, Department of Community Affairs, Division of Local
Government Services. These principles are regulatory basis, which differs from
accounting principles generally accepted in the United States of America
("GAAP") for governmental entities. Such principles and practices are designed
primarily for determining compliance with legal provisions and budgetary
restrictions and as a means of reporting on the stewardship of public officials with
respect to public funds.
Under this method of accounting, the Borough of
Roosevelt accounts for its financial transactions through the following separate
funds which differs from the funds required by accounting principles generally
accepted in the United States of America (GAAP).
Current Fund - The Current Fund accounts for resources and expenditures
for governmental operations of a general nature, including Federal and State
grant funds.
Trust Funds - The various Trust Funds account for receipts, custodianship
and disbursement of funds in accordance with the purpose for which each
reserve was created.
The Trust Other Fund, Animal Control Fund and
Payroll Trust Fund are part of this Trust.
General Capital Fund - The General Capital Fund accounts for receipt and
disbursement of funds for the acquisition of general capital facilities, other
than those acquired in the Current Fund. General bonds and notes payable
are recorded in this fund and are offset by deferred charges to future taxation.
- 22 -
Note 1.
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Description of Funds (Continued)
Utility Fund - The Water-Sewer Utility maintains an Operating Fund and a
Capital Fund which reflect revenue, expenditures, stewardship, acquisitions
of utility infrastructure and other capital facilities, debt service, long-term debt
and other related activity.
Payroll Trust Fund - Net salaries, certain payroll deductions and social
security contributions of municipal and utility operations are deposited into
bank accounts of the Payroll Fund. Other deductions are retained by the
operating funds and paid directly there from. A Payroll Fund does not exist
under GAAP.
Capital Asset Accounts - These accounts reflect estimated valuations of land,
buildings and certain moveable fixed assets of the Borough as discussed
under the caption of "Basis of Accounting".
C. Basis of Accounting - The accounting principles and practices prescribed for
municipalities by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey, differ in certain respects from
accounting principles generally accepted in the United States of America
(GAAP). The accounting system is maintained on the modified accrual basis
with certain exceptions.
Significant accounting policies in New Jersey are
summarized as follows:
Property Taxes and Other Revenue - Property Taxes and other revenue are
realized when collected in cash or approved by regulation for accrual from
certain sources of the State of New Jersey and the Federal Government.
Accruals of taxes and other revenue are otherwise deferred as to realization
by the establishment of offsetting reserve accounts.
GAAP requires such
revenue to be recognized in the accounting period when they become
susceptible to accrual, reduced by an allowance for doubtful accounts.
Grant Revenue - Federal and State grants, entitlements or shared revenue
received for purposes normally financed through the Current Fund are
recognized when anticipated in the Borough of Roosevelt's budget. GAAP
requires such revenue to be recognized in the accounting period when they
become susceptible to accrual.
Expenditures - Expenditures for general and utility operations are generally
recorded on the accrual basis. Unexpended appropriation balances, except
for amounts which may have been canceled by the governing body or by
statutory regulation, are automatically recorded as liabilities at December 31st
of each year, under the title of "Appropriation Reserves".
- 23 -
Note 1.
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Basis of Accounting (Continued)
Expenditures (Continued)
Grant appropriations are charged upon budget adoption to create spending
reserves.
Budgeted transfers to the Capital Improvement Fund are recorded as
expenditures to the extent permitted by law.
Expenditures from Trust and Capital Funds are recorded upon occurrence
and charged to accounts statutorily established for specific purposes.
Budget Appropriations for interest on General Capital Long-Term Debt is
raised on the cash basis and is not accrued on the records; interest on Utility
Debt is raised on the accrual basis and so recorded.
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, which should be recognized when due.
Encumbrances - As of January 1, 1986 all local units were required by
Technical Accounting Directive No. 85-1, as promulgated by the Division of
Local Government Services, to maintain an encumbrance accounting system.
The directive states that contractual orders outstanding at December 31 are
reported as expenditures through the establishment of an encumbrance
payable. Encumbrances do not constitute expenditures under GAAP.
Appropriation Reserves - Appropriation reserves 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.
Compensated Absences - Expenditures relating to obligations for unused
vested accumulated sick, vacation and compensatory pay are not recorded
until paid. 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 be recorded as a long-
term obligation.
- 24-
Note 1.
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31 I 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Basis of Accounting (Continued)
Property Acquired for Taxes - Property Acquired for Taxes (Foreclosed
Property) is recorded in the Current Fund at the assessed valuation during
the year when such property was acquired by deed or foreclosure and is
offset by a corresponding reserve account. GAAP requires such property to
be recorded in the capital assets account group at market value on the date
of acquisition.
lnterfund Accounts Receivable - lnterfund Accounts Receivable in the Current
Fund are generally recorded with offsetting reserves which are established by
charges to operations. Collections are recognized as income in the year that
the receivables are realized. lnterfund Accounts Receivable of all other funds
are recorded as accrued and are not offset with reserve accounts. lnterfund
Accounts Receivable of one fund are offset with lnterfund Accounts Payable
of the opposite fund.
GAAP does not require the establishment of an
offsetting reserve.
Inventories of Supplies - Materials and supplies purchased by all funds are
recorded as expenditures.
An annual inventory of materials and supplies for the Water-Sewer Utility is
required, by regulation, to be prepared by Borough personnel for inclusion on
the Water-Sewer Utility Operating Fund balance sheet. Annual changes in
valuations, offset with a Reserve Account, are not considered as affecting
results of operations.
Materials and supplies of other funds are not
inventoried nor included on their respective balance sheets.
Capital Assets
General - In accordance with Technical Accounting Directive No. 85-2,
Accounting for Governmental Capital Assets, as promulgated by the
Division of Local Government Services, which differs in certain respects
from GAAP, the Borough of Roosevelt has developed a capital asset
accounting and reporting system.
GAAP requires that fixed assets be capitalized at historical or estimated
historical cost if actual historical cost is not available. Depreciation on
utility fixed assets should also be recorded.
Capital assets used in governmental operations (capital assets) are
accounted for in the Capital Asset Accounts.
Public domain
("infrastructure") capital assets consisting of certain improvements other
than buildings, such as roads, bridges, curbs and gutters, streets and
sidewalks and drainage systems are not capitalized.
- 25 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES {CONTINUED)
C. Basis of Accounting {Continued)
Capital Assets (Continued)
General (Continued)
Acquisition of land, buildings, machinery, equipment and other capital
assets are recorded on a perpetual capital asset record.
Vehicles, furniture, equipment and other items are reflected at
replacement values at time of inventory preparation.
Additions to the
established capital assets are valued at cost.
Depreciation of assets is not recorded as an operating expense of the
Borough.
Utilities - Capital acquisitions, including utility infrastructure costs of the
Water-Sewer Utility, are recorded at cost upon purchase or project
completion in the Fixed Capital account of the utilities. The Fixed Capital
Accounts are adjusted for dispositions or abandonments. The accounts
include moveable fixed assets of the Utility but are not specifically
identified.
Utility improvements that may have been constructed by developers are
not recorded as additions to Fixed Capital.
Fixed Capital of the Utilities are offset by accumulations in Amortization
Reserve Accounts.
The accumulations represent costs of fixed assets
purchased with budgeted funds or acquired by gift as well as grants,
developer contributions or liquidations of related bonded debt and other
liabilities incurred upon fixed asset acquisition.
The Fixed Capital Accounts reflected herein are recorded in the records of
the municipality and do not necessarily reflect the true condition of such Fixed
Capital. The records consist of a control account only.
Memorandum Only -
Total Columns - Total columns are captioned
"memorandum only" to indicate that they are presented only to facilitate
financial analysis. Data in these columns do not present financial position,
results of operations or changes in financial position in conformity with
generally accepted accounting principles. Neither are such data comparable
to a consolidation.
lnterfund eliminations have not been made in the
aggregation of this data.
- 26 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31 I 2017
Note 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Other Accounting Standards
The Borough is currently reviewing the following for applicability and potential
impact on the financial statements:
GASB Statement No.
75,
Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions.
The primary objective of
this Statement is to improve accounting and financial reporting by state and
local governments for postemployment benefits other than pensions (other
postemployment benefits or OPES).
Effective Date: The provisions in Statement 75 are effective for fiscal years
beginning after June 15, 2017. The Borough does not expect this Statement
to have an impact its financial statements.
•
GASB Statement No. 82.
Pension Issues -
an Amendment of GASB
Statements No. 67, No. 68 and No. 73.
Specifically, this Statement
addresses issues regarding (1) the presentation of payroll-related measures
in required supplementary information, (2) the selection of assumptions and
the treatment of deviations from the guidance in an Actuarial Standard of
Practice for financial reporting purposes, and (3) the classification of
payments made by employers to satisfy employee (plan member)
contribution requirements.
Effective Date: The requirements of this Statement are effective for reporting
periods beginning after June 15, 2016, except for the requirements of
paragraph 7 in a circumstance in which an employer's pension liability is
measured as of a date other than the employer's most recent fiscal yearend.
In that circumstance, the requirements of paragraph 7 are effective for that
employer in the first reporting period in which the measurement date of the
pension liability is on or after June 15, 2017. The Borough does not expect
this Statement to impact its financial statements.
•
GASB Statement No. 83.
Certain Asset Retirement Obligations.
This
Statement addresses accounting and financial reporting for certain asset
retirement obligations (AROs).
An ARO is a legally enforceable liability
associated with the retirement of a tangible capital asset. A government that
has legal obligations to perform future asset retirement activities related to its
tangible capital assets should recognize a liability based on the guidance in
this Statement.
Effective Date: The requirements of this Statement are effective for reporting
periods beginning after June 15, 2018. The Borough does not expect this
Statement to impact its financial statements.
- 27 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Other Accounting Standards (Continued)
•
GASB Statement No. 84.
Fiduciary Activities.
This objective of this
Statement is to improve guidance regarding the identification of fiduciary
activities for accounting and financial reporting purposes and how those
activities should be reported.
This Statement establishes criteria for
identifying fiduciary activities of all state and local governments. The focus of
the criteria generally is on (1) whether a government is controlling the assets
of the fiduciary activity and (2) the beneficiaries with whom a fiduciary
relationship exists. Separate criteria are included to identify component units
and postemployment benefit arrangements that are fiduciary activities.
Effective Date: The requirements of this Statement are effective for reporting
periods beginning after December 15, 2018. The Borough does not expect
this Statement to impact its financial statements.
•
GASB Statement No. 85. Omnibus 2017. This objective of this Statement is
to address practice issues that have been identified during implementation
and application of certain GASS Statements. This Statement addresses a
variety of topics including issues related to blending component units,
goodwill, fair value measurement and application, and postemployment
benefits (pensions and other postemployment benefits [OPES]).
Effective Date: The requirements of this Statement are effective for reporting
periods beginning after June 27, 2017. The Borough does not expect this
Statement to impact its financial statements.
•
GASB Statement No. 86. Certain Debt Extinguishment Issues. The primary
objective of this Statement is to improve consistency in accounting and
financial reporting for in-substance defeasance of debt by providing guidance
for transactions in which cash and other monetary assets acquired with only
existing resources - resources other than the proceeds of refunding debt -
are placed in an irrevocable trust for the sole purpose of extinguishing debt.
This Statement also improves accounting and financial reporting for prepaid
insurance on debt that is extinguished and notes to financial statements for
debt that is defeased in substance.
Effective Date: The requirements of this Statement are effective for reporting
periods beginning after June 27, 2017. The Borough does not expect this
Statement to impact its financial statements.
- 28 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Other Accounting Standards (Continued)
•
GASB Statement No. 87. The objective of this Statement is to better meet
the information needs of financial statement users by improving accounting
and financial reporting for leases by governments. This statement increases
the usefulness of governments' financial statements by requiring recognition
of certain lease assets and liabilities for leases that previously were classified
as operating leases and recognized as inflows of resources or outflows of
resources based on the payment provisions of the contract. It establishes a
single model for lease accounting based on the foundational principle that
leases are financings of the right to use an underlying asset.
Under this
Statement, a lessee is required to recognize a lease liability and an intangible
right-to-use lease asset, and a lessor is required to recognize a lease
receivable and a deferred inflow of resources, thereby enhancing the
relevance and consistency of information about governments' leasing
activities.
Effective Date: The requirements of this Statement are effective for reporting
periods beginning after December 15, 2019.
Earlier application is
encouraged.
•
GASB Statement No. 88.
Certain Disclosures Related to Debt, including
Borrowings and Direct Placements. The primary objective of this Statement
is to improve the information and is disclosed in notes to government financial
statements related to debt, including direct borrowings and direct placements.
It also clarifies which liabilities governments should include when disclosing
information related to debt.
This Statement requires that additional essential information related to debt
be disclosed in notes to financial statements, including unused lines of credit;
assets pledged as collateral for the debt; and terms specified in debt
agreements related to significant events of default with finance related
consequences,
significant
termination
events
with
finance-related
consequences, and significant subjective acceleration clauses.
Effective Date: The requirements of this Statement are effective for reporting
periods beginning after June 15, 2018. Earlier application is encouraged.
- 29 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31 I 2017
Note 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Other Accounting Standards (Continued)
•
GASB Statement No. 89. Accounting for Interest Cost Incurred Before the
End of a Construction Period. The objectives of this Statement are (1) to
enhance the relevance and comparability of information about capital assets
and the cost of borrowing for a reporting period and (2) to simplify accounting
for interest cost incurred before the end of a construction period.
Effective Date: The requirements of this Statement are effective for reporting
periods beginning after December 15, 2019.
Earlier application is
encouraged.
The requirements of this Statement should be applied
prospectively.
E. Subsequent Events
Management has reviewed and evaluated all events and transactions from
December 31, 2017 through August 31, 2018, the date that the financial
statements are issued for possible disclosure and recognition in the financial
statements, and no items have come to the attention of the Borough that would
require disclosure.
- 30 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 2.
CASH, CASH EQUIVALENTS AND INVESTMENTS
A Cash and Cash Equivalents
New Jersey statutes permit the deposit of public funds in institutions located in
New Jersey, which are insured by the Federal Deposit Insurance Corporation
(FDIC) or any other agencies of the United States that insures deposits or the
State of New Jersey Cash Management Fund.
The State of New Jersey Cash Management Fund is authorized by statute and
regulations of the State Investment Council to invest in fixed income and debt
securities which mature or are redeemed within one year. Twenty-five percent of
the Fund may be invested in eligible securities which mature within two years
provided, however, the arbitrage maturity of all investments in the Fund shall not
exceed one year. Collateralization of Fund investments is generally not required.
In addition, by regulation of the Division of Local Government Services,
municipalities are allowed to deposit funds in the Municipal Bond Insurance
Association (MBIA) through their investment management company, the
Municipal Investors Service Corporation.
In accordance with the provisions of the Governmental Unit Deposit Protection
Act of New Jersey ("GUDPA"), public depositories are required to maintain
collateral for deposits of public funds that exceed insurance limits as follows:
The market value of the collateral must equal five percent of the average
daily balance of public funds or
If the public funds deposited exceed 75 percent of the capital funds of the
depository, the depository must provide collateral having a market value
equal to 100 percent of the amount exceeding 75 percent.
All collateral must be deposited with the Federal Reserve Bank, The Federal
Home Loan Bank Board or a banking institution that is a member of the Federal
Reserve System and has capital funds of not less than $25,000,000.00.
As of December 31, 2017, the Borough had funds on deposit in interest bearing
checking accounts. The amount of the Borough's cash and cash equivalents on
deposits as of December 31, 2017 was $1,441,723.24. These funds constitute
"deposits with financial institutions" as defined by GASS Statement No. 3 as
amended by GASS No. 40.
- 31 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 2.
CASH. CASH EQUIVALENTS AND INVESTMENTS (CONTINUED)
B. Investments
New Jersey statutes permit the Borough to purchase the following types of
securities:
•
Bonds or other obligations of the United States of America or obligations
guaranteed by the United States of America. This includes instruments
such as Treasury bills, notes and bonds.
•
Government money market mutual funds.
•
Any federal agency or instrumentality obligation authorized by Congress
that matures within 397 days from the date of purchase, and has a fixed
rate of interest not dependent on any index or external factors.
•
Bonds or other obligations of the local unit or school districts of which the
local unit is a part.
•
Any other obligations with maturities not exceeding 397 days, as
permitted by the Division of Investments.
•
Local government investment pools, such as New Jersey CLASS and the
New Jersey Arbitrage Rebate Management Program.
•
New Jersey State Cash Management Fund.
•
Repurchase agreements of fully collateralized securities, subject to
special conditions.
In addition, a variety of State laws permit local governments to invest in a wide
range of obligations issued by State governments and its agencies.
C. Risk Category
The deposits of the Borough are covered by the FDIC and where applicable by
GUDPA and present minimal risk.
- 32 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 3.
TAXES AND TAX TITLE LIENS RECEIVABLE
Property assessments are determined on true values and taxes are assessed based
upon these values.
The residential tax bill includes the levies for the Borough,
County and School purposes.
Certified adopted budgets are submitted to the
County Board of Taxation by each taxing district. The tax rate is determined by the
Board upon the filing of these budgets.
The tax bills are mailed by the Tax Collector annually in June and are payable in four
quarterly installments due the first of August and November of the current year and a
preliminary billing due the first of February and May of the subsequent year. The
August and November billings represent the third and fourth quarter installments and
are calculated by taking the total year tax levy less the preliminary first and second
quarter installments due February and May. The preliminary levy is based on one-
half of the current year's total tax.
Tax installments not paid by the above due dates are subject to interest penalties
determined by a resolution of the governing body. The rate of interest in accordance
with the aforementioned resolution is 8% per annum on the first $1,500.00 of
delinquency and 18% on any delinquency in excess of $1,500.00. The governing
body may also fix a penalty to be charged to a taxpayer with a delinquency in excess
of $10,000.00 who fails to pay that delinquency as billed prior to the end of the fiscal
year. The penalty so fixed shall not exceed 6% of the amount of the delinquency
with respect to each most recent fiscal year only. The resolution also sets a grace
period of ten days before interest is calculated.
Taxes unpaid on the 11th day of the eleventh month in the fiscal year when the taxes
became in arrears are subject to the tax sale provisions of the New Jersey statutes.
The municipality may institute in rem foreclosure proceedings after six months from
the date of the sale if the lien has not been redeemed.
The following is a five-year comparison of certain statistical information relative to
property taxes and property tax collections for the current and previous four years.
- 33 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS {CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 3.
TAXES AND TAX TITLE LIENS RECEIVABLE (CONTINUED)
Comparative Schedule of Tax Rates
2017
2016
2015
Tax Rate
$ 2.906
$ 2.868
$ 2.919
Apportionment of Tax Rate:
Municipal
0.756
0.728
0.728
County
0.300
0.292
0.312
Local School
1.850
1.848
1.879
Assessed Valuation
2017
$
85,665,800.00
2016
85,344,749.00
2015
85,837,215.00
2014
81,996,061.00
2013
84,211,290.00
Comparison of Tax Levies and Collections
Year
Tax Levy
Collections
2017
$
2,488,921.44
$
2,422,377. 95
2016
2,444,490.38
2,401,459. 77
2015
2,508,575.69
2,460, 128.19
2014
2,457,517.51
2,392,927.73
2013
2,453,383.85
2,364,694.04
Delinquent Taxes and Tax Title Liens
Tax
Delinquent
Total
Year
Title Liens
Taxes
Delinquent
2017
$
None
$
66,543.29
$
66,543.29
2016
9,094.47
39,809.83
48,904.30
2015
5,873.74
43, 107.26
48,981.00
2014
None
55,520.54
55,520.54
2013
None
80,868.39
80,868.39
- 34-
2014
2013
$ 2.996
$ 2.913
0.749
0.306
1.941
Percentage
of Collections
97.33%
98.24%
98.07%
97.37%
96.39%
0.748
0.313
1.852
Percentage
of Tax Levy
2.68%
2.00%
2.12%
2.26%
3.30%
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31 I 2017
Note 4.
PROPERTY ACQUIRED BY TAX TITLE LIEN LIQUIDATION
The value of property acquired by liquidation of tax title liens on December 31, on the
basis of the last assessed valuation of such properties, was as follows:
2017
2016
2015
2014
2013
Note 5.
WATER-SEWER UTILITY
$
Amount
181,700.00
181,700.00
181,700.00
181,700.00
181,700.00
The Borough operates its own water treatment plant and sewerage treatment plant.
The water-sewer delinquent balances are subject to the same requirements of the
tax sale provision of the New Jersey Statutes in effect for taxes. Customers are
billed at a base rate for a minimum usage plus a factor for excess consumption on a
bi-monthly basis for 2017.
Billings and Collections
2017
2016
2015
2014
2013
Amount
Levied
$
736,024.16
737,919.21
736,973.28
735,597.83 **
667,925.70
* May include amounts levied in prior years
** Rate increase effective
- 35 -
Collections*
$
713,820.20
743,887.34
746,261.82
732,603.16
662,432.23
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 6.
DEFERRED SCHOOL TAXES
Regulations provide for the deferral of not more than 50% of the annual levy when
school taxes are raised for a school year and have not been requisitioned by the
school district.
The Borough of Roosevelt raises its share of Local District School Taxes on a school
year basis.
Balance
Balance
December 31,
December 31,
Increase/
2016
2017
(Decrease)
Balance of Tax*
$
792,856.00
$ 788,388.00
$
4,468.00
Deferred Portion
491,850.50
491,850.50
None
Tax Payable
$
301,005.50
$ 296,537.50
$
4,468.00
*Required for school operations for the six-month period following December 31 51.
Note 7.
FUND BALANCES APPROPRIATED
The following schedule details the amount of fund balances available at the end of
each year and the amounts utilized in the subsequent year's budget.
Current Fund
2017
2016
2015
2014
2013
$
Balance
December 31
604,366.83
439,105.14
805,633.55
801,740.85
690,598.27
Water-Sewer Utility Operating Fund
2017
$
None
2016
21,975.11
2015
61,059.09
2014
None
2013
None
- 36 -
Utilized in Budget
of Succeeding Year
$
323,900.00
345,000.00
391,000.00
322,500.00
259,873.15
$
None
21,975.11
61,059.09
None
None
Percentage of Fund
Balance Used
53.59%
78.57%
48.53%
40.22%
37.63%
None
100.00%
100.00%
None
None
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 8.
MUNICIPAL DEBT
The Local Bond Law governs the issuance of bonds and notes to finance general
capital expenditures. All bonds are retired in serial installments with 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, must be paid off within ten years and
five months or required by the issuance of bonds.
Summary of Municipal Debt (Excluding Current and Operating Debt)
Year2017
Year2016
Year2015
Issued
General:
Notes
$
None
$
None
$
None
Loans
115,000.00
125,000.00
135,000.00
Water-Sewer Utility:
Notes
376,150.00
None
541,513.00
Loans
2, 990, 956.40
3, 176, 166.94
2,540,379.28
Debt Issued
$
3,482, 106.40 $ 3,301, 166.94 $ 3,216,892.28
Authorized but Not Issued
General:
Bonds and Notes
$
72,250.00
$
112,250.00 $
157,250.00
Water-Sewer Utility:
Bonds and Notes
820,412.00
1,196,562.00
1,132,637.00
Total Authorized but Not Issued
$
892,662.00
$ 1,308,812.00 $ 1,289,887.00
Net Bonds and Notes Issued and
Authorized but Not Issued
$
4,374,768.40 $ 4,609,978.94 $ 4,506,779.28
- 37 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 8.
MUNICIPAL DEBT (CONTINUED)
Summary of Statutory Debt Condition, Annual Debt Statement
The summarized statement of debt condition that follows is prepared in accordance
with the required method of setting up the Annual Debt Statement and indicated a
statutory debt of 1.09%.
Gross Debt
Deductions
Net Debt
Local School District Debt
$
431,000.00
$
431,000.00 $
None
Water-Sewer Utility Debt
4, 187,518.40
3,450,397.00
737,121.40
General Capital Debt
187,250.00
None
187,250.00
$
4,805,768.40
$
3,881,397.00 $
924,371.40
Equalized Valuation basis per N.J.S. 40A:2-2 As Amended is $85, 138,404.33. The
Annual Debt Statement as amended has been filed.
Borrowing Power Under N.J.S. 40A:2-6 As Amended
3Yi% of Equalized Valuation Basis (Municipal)
Net Debt
Remaining Borrowing Power
School Debt Deductions
$
2,979,844.15
924,371.40
$ ==2=,0=5=5=,4=72=·=75=
School debt is deductible up to the extent of 3.0% of the Average Equalized
Assessed Valuations of real property for the Local School District.
- 38 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 8.
MUNICIPAL DEBT (CONTINUED)
Calculation of "Self-Liquidating Purpose". Water-Sewer Utility, Per N.J.S. 40A:2-45
Cash Receipts from Fees, Rents or
Other Charges for Year
Deductions:
Operating and Maintenance Cost
Debt Service
Excess/(Deficit) in Revenue
$
588,920.33
273,709.49
$
825,773.75
862,629.82
$
{36,856.07}
There being a (deficit) in revenue for the Water-Sewer Utility, the fund was not self-
liquidating and therefore, only a portion related debt $36,856.07 less the deficit
capitalized at 5% per statute ($36,856.07x20=$737, 121.40). $34,506.97 is
deductible for purposes of the annual debt statement and resultant net debt
calculation.
General Capital Fund
On December 4, 2012 the Borough permanently financed the remaining balance of
Bond Anticipation Notes of $165,000.00 and provided for related debt issuance costs
through the Monmouth County Improvement Authority ("MCIA"), with the proceeds
from the issuance of a $165,000.00 loan plus a premium of $12,872.75.
The repayment of bonds issued by the MCIA on December 4, 2012 will occur
through December 1, 2027 at principal amounts of ranging from $10,000.00 to
$15,000.00 at interest rates ranging from 2.0% to 4.0%.
Redemption:
The MCIA ("Issuer") Series 2012 Bonds are subject to optional redemption at
the discretion of the Issuer. Bonds maturing on or after December 1, 2022 will
be subject to redemption at 100% of par on or after December 1, 2021 in
accordance with the terms of the issuer's bond agreement.
An early
redemption and/or refunding would not affect the Borough's obligation to repay
the principal portion of the loan in accordance with the original terms.
- 39 -
Note 8.
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
MUNICIPAL DEBT {CONTINUED)
General Capital Fund {Continued)
Schedule of Annual Debt Service for Principal and Interest for Debt Issued and
Outstanding
Calender Year
Princi~al
Interest
Total
2018
$
10,000.00
$
3,450.00
$
13,450.00
2019
10,000.00
3,150.00
13, 150.00
2020
10,000.00
2,850.00
12,850.00
2021
10,000.00
2,450.00
12,450.00
2022
10,000.00
2,050.00
12,050.00
50,000.00
13,950.00
63,950.00
2023
10,000.00
1,650.00
11,650.00
2024
10,000.00
1,250.00
11,250.00
2025
15,000.00
1,050.00
16,050.00
2026
15,000.00
600.00
15,600.00
2027
15,000.00
300.00
15,300.00
65,000.00
4,850.00
69,850.00
$
115,000.00
$
18,800.00
$
133,800.00
-40-
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 8.
MUNICIPAL DEBT (CONTINUED)
Water-Sewer Utility Capital Fund
The long-term debt of the Borough consists of the Farmer's Home Administration
("FHA") Loan.
Schedule of Annual Debt Service for Principal and Interest for Debt Issued and
Outstanding
Calender Year
2018
2019
2020
2021
2022
Total
Detail:
Principal
Interest
Interest Rate:
Due Dates:
Maturity:
Purpose:
1992 Loan
Principal
and Interest
$
18,000.00
18,000.00
18,000.00
18,000.00
9,000.00
$
$
81,000.00
- 41 -
$
70,485.93
10,514.07
$
81,000.00
5%
March and September
March 31, 2022
Improvements to the Water System
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS {CONTINUED}
YEAR ENDED DECEMBER 31, 2017
Note 8.
MUNICIPAL DEBT (CONTINUED)
Water-Sewer Utility Capital Fund (Continued)
Loans Payable
Schedule of Annual Debt Service for Principal and Interest for Debt Issued and
Outstanding
MCIA Refunding Loan - 2011
Calender Year
Principal
Interest
Total
2018
$
75,000.00
$
58,650.00
$
133,650.00
2019
80,000.00
54,900.00
134,900.00
2020
85,000.00
50,900.00
135,900.00
2021
90,000.00
46,650.00
136,650.00
2022
95,000.00
42, 150.00
137, 150.00
425,000.00
253,250.00
678,250.00
2023
95,000.00
38,350.00
133,350.00
2024
100,000.00
34,550.00
134,550.00
2025
105,000.00
31,550.00
136,550.00
2026
105,000.00
28,400.00
133,400.00
2027
110,000.00
25,250.00
135,250.00
515,000.00
158, 100.00
673,100.00
2028
115,000.00
21,950.00
136,950.00
2029
115,000.00
18,500.00
133,500.00
2030
125,000.00
12,750.00
137,750.00
2031
130,000.00
6,500.00
136,500.00
485,000.00
59,700.00
544,700.00
Total
$ 1,425,000.00
$
471,050.00
$ 1,896,050.00
-42 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS {CONTINUED}
YEAR ENDED DECEMBER 31, 2017
Note 8.
MUNICIPAL DEBT (CONTINUED)
Water-Sewer Utility Capital Fund (Continued)
Loans Payable (Continued)
Schedule of Annual Debt Service for Principal and Interest for Debt Issued and
Outstanding (Continued)
Calender Year
Principal
Interest
Total
2018
$
35,000.00
$
12,350.00
$
47,350.00
2019
35,000.00
11,300.00
46,300.00
2020
35,000.00
10,250.00
45,250.00
2021
40,000.00
8,850.00
48,850.00
2022
40,000.00
7,250.00
47,250.00
185,000.00
50,000.00
235,000.00
2023
40,000.00
5,650.00
45,650.00
2024
45,000.00
4,050.00
49,050.00
2025
45,000.00
3, 150.00
48, 150.00
2026
45,000.00
1,800.00
46,800.00
2027
45,000.00
900.00
45,900.00
220,000.00
15,550.00
235,550.00
Total
$
405,000.00
$
65,550.00
$
470,550.00
- 43 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS {CONTINUED}
YEAR ENDED DECEMBER 31, 2017
Note 8.
MUNICIPAL DEBT (CONTINUED)
Water-Sewer Utility Capital Fund (Continued)
Loans Payable (Continued)
Schedule of Annual Debt Service for Principal and Interest for Debt Issued and
Outstanding (Continued)
Calender Year
2011
2012
Grand Total
2018
$
133,650.00
$
47,350.00
$
181,000.00
2019
134,900.00
46,300.00
181,200.00
2020
135,900.00
45,250.00
181,150.00
2021
136,650.00
48,850.00
185,500.00
2022
137,150.00
47,250.00
184,400.00
678,250.00
235,000.00
913,250.00
2023
133,350.00
45,650.00
179,000.00
2024
134,550.00
49,050.00
183,600.00
2025
136,550.00
48,150.00
184,700.00
2026
133,400.00
46,800.00
180,200.00
2027
135,250.00
45,900.00
181,150.00
673,100.00
235,550.00
908,650.00
2028
136,950.00
136,950.00
2029
133,500.00
133,500.00
2030
137,750.00
137,750.00
2031
136,500.00
136,500.00
544,700.00
544,700.00
Total
$ 1,896,050.00
$
470,550.00
$ 2,366,600.00
-44 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS {CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 8.
MUNICIPAL DEBT (CONTINUED)
Water-Sewer Utility Capital Fund - Loans Payable (Continued)
MCIA Refunding Loan - 2011
On December 29, 2011 the Borough refinanced the remaining balance of the USDA
1992 Loan $1,983,362.01 through the Monmouth County Improvement Authority
("MCIA"), with the proceeds from the issuance of a $1,825,000.00 loan plus a
premium of $191,019.25. The refinancing was approved by the Local Finance Board
and resulted in a net present value savings of $616,240.61, or 31.44%.
The repayment of bonds issued by the MCIA on December 29, 2011 will occur
through December 1, 2031 at principal amounts of ranging from $75,000.00 to
$130,000.00 and interest rates ranging from 3.0% to 5.0%. The USDA 1992 Loan
was paid off on January 14, 2012 in accordance with the requirements.
Redemption
The MCIA Series 2011 Bonds ("Issuer'') are subject to optional redemption at
the discretion of the Issuer. Bonds maturing on or after December 1, 2021 will
be subject to redemption at 100% of par on or after December 1, 2020 in
accordance with the terms of the issuer's bond agreement.
An early
redemption and/or refunding would not affect the Borough's obligation to repay
the principal portion of the bond in accordance with the original terms.
MCIA Loan - 2012
On December 4, 2012 the Borough permanently financed the remaining balance
Bond Anticipation Notes of $572,400.00 and provided for related debt issuance costs
through the Monmouth County Improvement Authority ("MCIA"), with the proceeds
from the issuance of a $570,000.00 loan plus a premium of $47,601.50.
The repayment of bonds issued by the MCIA on December 4, 2012 will occur
through December 1, 2027 at principal amounts ranging from $35,000.00 to
$45,000.00 at interest rates ranging from 2.0% to 4.0%.
Redemption
The MCIA Series 2012 Bonds ("Issuer'') are subject to optional redemption at
the discretion of the Issuer. Bonds maturing on or after December 1, 2022 will
be subject to redemption at 100% of par on or after December 1, 2021 in
accordance with the terms of the issuer's bond agreement.
An early
redemption and/or refunding would not affect the Borough's obligation to repay
the principal portion of the bond in accordance with the original terms.
-45 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS {CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 8.
MUNICIPAL DEBT (CONTINUED)
State of New Jersey Environmental Infrastructure Trust Loans (NJEIT)
State Portion
$135,000.00 NJEIT -
2010 Winter Program - Annual maturities of
$5,000.00 to $10,000.00 through August 1, 2029
at interest rates ranging from 3.0% to 5.0%.
$
100,000.00 *
$195,000.00 NJEIT -
2016 Spring Program - Annual maturities of
$5,000.00 to $15,000.00 through August 1, 2029
at interest rates ranging from 2.0% to 5.0%.
190,000.00 **
$
290,000.00
Federal Portion
$405,000.00 NJEIT -
2010 Winter Program - Annual maturities of
$20,593.21 through August 1, 2029. There is no
interest being charged on this loan. The loan is
not subject to early redemption or refunding.
$
247, 118.72
$604,588.00 NJEIT -
2016 Spring Program - Annual maturities of
$20,593.21 through August 1, 2035. There is no
interest being charged on this loan. The loan is
not subject to early redemption or refunding.
553,351.75
$
800,470.47
$ 1,090,470.47
-46-
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 8.
MUNICIPAL DEBT (CONTINUED)
State of New Jersey Environmental Infrastructure Trust Loans (NJEIT) (Continued)
Redemption:
*
The Series 2010 Winter Program Bonds of the NJEIT ("Issuer") are
subject to optional redemption at the discretion of the Issuer. Bonds
maturing on or after September 1, 2019 will be subject to redemption at
100% of par on or after September 1, 2018 in accordance with the
terms of the issuer's bond agreement. The Series 2010 Bonds of the
Issuer are also subject refunding; however, only on a parity basis
subject to the terms of issuer's bond agreement. An early redemption
and/or refunding would not affect the Borough's obligation to repay the
principal portion of the loan in accordance with the original terms.
** The Series 2016 Spring Program Bonds of the NJEIT ("Issuer'') are
subject to optional redemption at the discretion of the Issuer. Bonds
maturing on or after September 1, 2025 will be subject to redemption at
100% of par on or after September 1, 2024 in accordance with the
terms of the issuer's bond agreement. The Series 2011 Bonds of the
Issuer are also subject refunding; however, only on a parity basis
subject to the terms of issuer's bond agreement. An early redemption
and/or refunding would not affect the Borough's obligation to repay the
principal portion of the loan in accordance with the original terms.
-47 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS {CONTINUED}
YEAR ENDED DECEMBER 31, 2017
Note 8.
MUNICIPAL DEBT (CONTINUED)
State of New Jersey Environmental Infrastructure Trust Loans (NJEIT) (Continued)
2010 Winter Program
Princieal
Interest
Federal
State
State
Total
2018
$
20,593.21
$
5,000.00
$
4,000.00
$
29,593.21
2019
20,593.21
5,000.00
3,750.00
29,343.21
2020
20,593.21
5,000.00
3,550.00
29,143.21
2021
20,593.21
5,000.00
3,300.00
28,893.21
2022
20,593.21
10,000.00
3,150.00
33,743.21
102,966.05
30,000.00
17,750.00
150,716.05
2023
20,593.21
10,000.00
2,750.00
33,343.21
2024
20,593.21
10,000.00
2,350.00
32,943.21
2025
20,593.21
10,000.00
1,950.00
32,543.21
2026
20,593.21
10,000.00
1,550.00
32,143.21
2027
20,593.21
10,000.00
1,200.00
31,793.21
102,966.05
50,000.00
9,800.00
162,766.05
2028
20,593.21
10,000.00
800.00
31,393.21
2029
20,593.41
10,000.00
400.00
30,993.41
41, 186.62
20,000.00
1,200.00
62,386.62
$ 247,118.72
$ 100,000.00
$ 28,750.00
$
375,868.72
- 48 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS {CONTINUED}
YEAR ENDED DECEMBER 31, 2017
Note 8.
MUNICIPAL DEBT (CONTINUED)
State of New Jersey Environmental Infrastructure Trust Loans (NJEIT) (Continued)
2016 Spring Program
Principal
Interest
Federal
State
State
Total
2018
$
30,741.75
$
5,000.00
$
6,812.50
$
42,554.25
2019
30,741.75
10,000.00
6,562.50
47,304.25
2020
30,741.75
10,000.00
6,062.50
46,804.25
2021
30,741.75
10,000.00
5,562.50
46,304.25
2022
30J41.75
10,000.00
5,062.50
45,804.25
153,708.75
45,000.00
30,062.50
228,771.25
2023
30,741.75
10,000.00
4,562.50
45,304.25
2024
30,741.75
10,000.00
4,062.50
44,804.25
2025
30,741.75
10,000.00
3,662.50
44,404.25
2026
30,741.75
10,000.00
3,262.50
44,004.25
2027
30,741.75
10,000.00
2,862.50
43,604.25
153,708.75
50,000.00
18,412.50
222, 121.25
2028
30,741.75
10,000.00
2,462.50
43,204.25
2029
30,741.75
10,000.00
2,262.50
43,004.25
2030
30,741.75
10,000.00
2,062.50
42,804.25
2031
30,741.75
10,000.00
1,862.50
42,604.25
2032
30,741.75
10,000.00
1,650.00
42,391.75
153,708.75
50,000.00
10,300.00
214,008.75
2033
30,741.75
15,000.00
1,350.00
47,091.75
2034
30,741.75
15,000.00
900.00
46,641.75
2035
30,742.00
15,000.00
450.00
46, 192.00
92,225.50
45,000.00
2,700.00
139,925.50
$ 553,351.75
$ 190,000.00
$ 61,475.00
$
804,826.75
- 49 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS {CONTINUED}
YEAR ENDED DECEMBER 31, 2017
Note 8.
MUNICIPAL DEBT (CONTINUED)
State of New Jersey Environmental Infrastructure Trust Loans (NJEIT) (Continued)
Total NJEIT Programs
Princi~al
Interest
Federal
State
State
Total
2018
$
51,334.96
$ 10,000.00
$ 10,812.50
$
72, 147.46
2019
51,334.96
15,000.00
10,312.50
76,647.46
2020
51,334.96
15,000.00
9,612.50
75,947.46
2021
51,334.96
15,000.00
8,862.50
75, 197.46
2022
51,334.96
20,000.00
8,212.50
79,547.46
256,674.80
75,000.00
47,812.50
379,487.30
2023
51,334.96
20,000.00
7,312.50
78,647.46
2024
51,334.96
20,000.00
6,412.50
77,747.46
2025
51,334.96
20,000.00
5,612.50
76,947.46
2026
51,334.96
20,000.00
4,812.50
76, 147.46
2027
51,334.96
20,000.00
4,062.50
75,397.46
256,674.80
100,000.00
28,212.50
384,887.30
2028
51,334.96
20,000.00
3,262.50
74,597.46
2029
51,335.16
20,000.00
2,662.50
73,997.66
2030
30,741.75
10,000.00
2,062.50
42,804.25
2031
30,741.75
10,000.00
1,862.50
42,604.25
2032
30,741.75
10,000.00
1,650.00
42,391.75
194,895.37
70,000.00
11,500.00
276,395.37
2033
30,741.75
15,000.00
1,350.00
47,091.75
2034
30,741.75
15,000.00
900.00
46,641.75
2035
30,742.00
15,000.00
450.00
46,192.00
92,225.50
45,000.00
2,700.00
139,925.50
$ 800,470.47
$ 290,000.00
$ 90,225.00
$ 1,180,695.47
- 50-
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS {CONTINUED}
YEAR ENDED DECEMBER 31, 2017
Note 8.
MUNICIPAL DEBT (CONTINUED)
Combined Schedule of Water-Sewer Utility Capital Fund Indebtedness
Calendar
Year
FHA Loan
MCIA Loan
NJEIT Loan
Total
2018
$
18,000.00
$
181,000.00
$
72,147.46
$
271, 147.46
2019
18,000.00
181,200.00
76,647.46
275,847.46
2020
18,000.00
181, 150.00
75,947.46
275,097.46
2021
18,000.00
185,500.00
75, 197.46
278,697.46
2022
9,000.00
184,400.00
79,547.46
272,947.46
81,000.00
913,250.00
379,487.30
1,373,737.30
2023
179,000.00
78,647.46
257,647.46
2024
183,600.00
77,747.46
261,347.46
2025
184,700.00
76,947.46
261,647.46
2026
180,200.00
76,147.46
256,347.46
2027
181,150.00
75,397.46
256,547.46
908,650.00
384,887.30
1,293,537.30
2028
136,950.00
74,597.46
211,547.46
2029
133,500.00
73,997.66
207,497.66
2030
137,750.00
42,804.25
180,554.25
2031
136,500.00
42,604.25
179,104.25
2032
42,391.75
42,391.75
544,700.00
276,395.37
821,095.37
2033
47,091.75
47,091.75
2034
46,641.75
46,641.75
2035
46, 192.00
46,192.00
139,925.50
139,925.50
Total
$
81,000.00
$ 2,366,600.00
$ 1, 180,695.4 7
$ 3,628,295.47
- 51 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 8.
MUNICIPAL DEBT (CONTINUED)
Bond Anticipation Notes
Interest
Rate
Original
Issue Date
Payment Required
Amount
First
Final
General Capital Fund
1.70%
12/29/2017
$
376, 150.00
2020
2031
$
376, 150. 00
Bonds and Notes Authorized but not Issued
At December 31, 2017, the Borough had notes authorized but not issued as follows:
Fund
General Capital
Water-Sewer Utility Capital
Subsequent Event
$
Amount
72,250.00
820,412.00
$
892,662.00
General Capital Fund -
the Borough adopted a Bond Ordinance (#18-05) for
$520,000.00 which authorized debt of $310,000.00, and included a NJDOT grant of
$210,000.00 for repair the Homestead Lane and Cedar Court.
Water-Sewer Capital Fund - the Borough adopted a Bond Ordinance (#18-06) that
authorized debt of $715,000.00 for repairs the water mains along Homestead Lane,
Elm Court and Cedar Court. The project will be financed by the NJl-Bank which
offers favorable financing rates; however, the amount could be reduced by grant
proceeds.
Note 9.
PENSION PLAN
Description of Systems
Substantially all of the Borough's full-time employees participate in the contributory
defined benefit public employee retirement system which had been established by
State statute: the Public Employees' Retirement System (PERS).
- 52 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 9.
PENSION PLAN (CONTINUED}
Description of Systems (Continued}
Public Employees' Retirement System
The State of New Jersey, Public Employees' Retirement System (PERS) is a
cost-sharing multiple-employer defined benefit pension plan administered by the
State of New Jersey, Division of Pensions and Benefits (the Division). For
additional information about PERS, please refer to Division's Comprehensive
Annual
Financial
Report
(CAFR},
which
can
be
found
at
http://www.nj.gov/treasury/pensions/financial-reports.shtml.
The vesting and benefit provisions are set by N.J.S.A. 43:15A. PERS provides
retirement, death and disability benefits. All benefits vest after ten years of
service, except for medical benefits, which vest after twenty-five (25) years of
service or under the disability provisions of PERS.
Tier
Definition
1
Members who were enrolled prior to July 1, 2007
2
Members who were eligible to enroll on or after July 1, 2007 and
prior to November 2, 2008
3
Members who were eligible to enroll on or after November 2, 2008
and prior to May 22, 201 O
4
Members who were eligible to enroll on or after May 22, 2010 and
prior to June 28, 2011
5
Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits of 1/551h of final average salary for each year of
service credit is available to tiers 1 and 2 members upon reaching age 60 and to
tier 3 members upon reaching age 62. Service retirement benefits of 1/601h of
final average salary for each year of service credit is available to tier 4 members
upon reaching age 62 and tier 5 members upon reaching age 65.
Early
retirement benefits are available to tiers 1 and 2 members before reaching age
60, tiers 3 and 4 with 25 or more years of service credit before age 62 and tier 5
with 30 or more years of service credit before age 65. Benefits are reduced by a
fraction of a percent for each month that a member retires prior to the age at
which a member can receive full early retirement benefits in accordance with
their respective tier. Tier 1 members can receive an unreduced benefit from age
55 to age 60 if they have at least 25 years of service. Deferred retirement is
available to members who have at least 10 years of service credit and have not
reached the service retirement age for the respective tier.
- 53 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 9.
PENSION PLAN (CONTINUED)
Contributions Required to be Made
The contribution policy for PERS is set by N.J.S.A. 43:15A and requires contributions
by active members and contributing employers. Employee contributions for 2017
were seven and 20/1 OOth present (7.20%) and effective July 1, 2017, employee
contributions were increased to seven and 34/100th percent (7.34%) of the
employee's base wages.
Employer's contributions are actuarially determined
annually by the Division of Pension.
The local employers' contribution amounts are based on an actuarially determined
rate, which includes the normal cost and unfunded accrued liability. Chapter 19, P.L.
2009 an option for local employers of PERS to contribute 50% of the normal and
accrued liability contribution amounts certified for payments due in State fiscal year
2009. Such employers will be credited with the full payment and any such amounts
will not be included in their unfunded liability. The actuaries will determine the
unfunded liability of those retirement systems, by employer, for the reduced normal
and accrued liability contributions provided under this law. This unfunded liability will
be paid by the employer in level annual payments over a period of 15 years
beginning with the payments due in the fiscal year ended June 30, 2012 and will be
adjusted by the rate of return on the actuarial value of assets.
The Borough's contributions to the plan for the past three (3) years are as follows:
PERS
2017
2016
2015
Covered Payroll
$
170,056 $
167,640 $
142,960
Actuarial Contribution Requirements
16,602
13,655
20,809
Total Contributions Employer Share
16,602
13,655
20,809
Percent of Covered Employee - Payroll
9.76
8.15 %
14.56 %
Employee's Share
12,363
11,953
10,010
Percent of Covered Payroll
7.27 %
7.13 %
7.00 %
All contributions were equal to the required contributions for each of the three (3)
years, respectively.
Due to the employee contribution percent changing July 1st of every year; the percent
of covered payroll is an average of the first two quarters and the last two quarters of
the year.
- 54 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 9.
PENSION PLAN (CONTINUED)
Pension (PERS) Accrual
The Borough is required to report on its financial statements on an "Other
Comprehensive Basis of Accounting" (OCBOA) Regulatory Basis, which does not
require an accrual for its obligations inclusive of pension.
If the Borough were
required to reflect the obligation under Generally Accepted Accounting Principles
(GAAP) then an accrual for the PERS obligation due April 1, 2018 would be needed
in the amount of $22,416.00 since the obligation relates to the period December 31,
2017 and prior. The accrual (under GAAP) would affect the fund balance at yearend.
The information for PERS was abstracted from State of New Jersey Public
Employees' Retirement System Schedules of Employer Allocations and Schedules of
Pension Amounts by Employer as of June 30, 2017 and June 30, 2016 Independent
Auditor's Report dated April 27, 2018 and April 6, 2017, respectively.
The Borough's reported liability of $563,269.00 and $553,480.000 for its
proportionate share of the net pension liability at December 31, 2017 and December
31, 2016, respectively. The net pension liability was measured as of June 30, 2017
and June 30, 2016 and the total pension liability used to calculate the net pension
liability was determined by an actuarial valuation as of those dates. The Borough's
proportion of the net pension liability was based on a projection of the Borough's
long-term share of contributions to the pension plan relative to the projected
contributions of all participating entities, actuarially determined.
Local Group Share
Borough Proportionate Percentage
Difference - Increase
June 30,
(Measurement Date)
$ 23,278,401,588
0.0024197069 %
0.0005509240 %
- 55 -
$ 29,617, 131,759
0.0018687829 %
Note 9.
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31 I 2017
PENSION PLAN (CONTINUED)
Public Employees Retirement System (PERS) (Continued)
For the year ended December 31, 2017, the Borough's recognizable pension
income of negative $5, 119.00. At December 31, 2017, the Borough reported
deferred outflows of resources and deferred inflows of resources related to PERS
from the following sources:
Deferred
Outflows of
Resources
Changes in assumptions
$
113,479
13,263
Net difference between expected and actual experience
Net difference between projected and actual investment
earnings on pension plan investment
Changes in proportion
Borough Contribution:
Subsequent to Yearend
3,835
133,903
22,416
Total
$
286,896
=====
Deferred
Inflows of
Resources
$ 113,063
198,329
$ 311,392
The $22,416.00 reported as deferred outflows of resources related to pensions
resulting from entities contributions subsequent to the measurement date (i.e. for
the Borough year ending December 31, 2017, the plan measurement date is
June 30, 2016) will be recognized as a reduction of the net pension liability in the
Borough year ended December 31, 2017. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to pensions will
be recognized in pension expense based on local share is as follows:
Year Ended
December 31,
2018
2019
2020
2021
2022
- 56 -
$
Amount
13,260
20,010
12, 125
(16,126)
(11,754)
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31 I 2017
Note 9.
PENSION PLAN (CONTINUED)
Public Employees Retirement System (PERS) (Continued)
Additional Information:
Collective (local employers) balances at June 30, 2017 and June 30, 2016 are as
follows:
June 30, 2017
June 30, 2016
Collective deferred outflows of resources
$ 6,424,455,842
$
8,685,338,380
Collective deferred inflows of resources
$ 5,700,625,981
$
870, 133,595
Collective net pension liability
$ 23,278,401,588
$ 29,617,131,759
Borough's proportion (of Local Group)
0.0024197069 %
0.0018687824 %
Actuarial Assumptions
The total pension liability for the June 30, 2017 measurement date was
determined by an actuarial valuation as of July 1, 2016, which rolled forward to
June 30, 2017. This actuarial valuation used the following actuarial assumptions:
Inflation
Salary Increases:
Through 2026
Thereafter
Investment Rate of Return
2.25 Percent
1.65 - 4.15 Percent (based on age)
2.65 - 5.15 Percent (based on age)
7. 00 Percent
- 57 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 9.
PENSION PLAN (CONTINUED)
Public Employees Retirement System (PERS) (Continued)
Mortality Rates
Pre-retirement mortality rates were based on the
RP-2000 Employee
Preretirement Mortality Table for male and female active participants. For local
employees, mortality tables are set back 2 years for males and 7 years for
females. In addition, the tables provide for future improvements in mortality from
the base year of 2013 using a generational approach based on the plan actuary's
modified MP-2014 projection scale. Post-retirement mortality rates were based
on the RP-2000 Combined Healthy Male and Female Mortality Tables (set back
1 year for males and females) for service retirements and beneficiaries of former
members and a one-year static projection based on mortality improvement Scale
AA.
In addition, the tables for service retirements and beneficiaries of former
members provide for future improvements in mortality from the base year of 2013
using a generational approach based on the plan actuary's modified MP-2014
projection scale. Disability retirement rates used to value disabled retirees were
based on the RP-2000 Disabled Mortality Table (set back 3 years for males and
set forward 1 year for females).
The actuarial assumptions used in the July 1, 2016 valuation were based on the
results of an actuarial experience study for the period July 1, 2011 to June 30,
2014.
It is likely that future experience will not exactly conform to these
assumptions.
To the extent that actual experience deviates from these
assumptions, the emerging liabilities may be higher or lower than anticipated.
The more the experience deviates; the larger the impact on future financial
statements.
Long-Term Rate of Return
In accordance with State statute, the long-term expected rate of return on plan
investments (7.00% at June 30, 2017) is determined by the State Treasurer, after
consultation with the Directors of the Division of Investments and Division of
Pensions and Benefits, the board of trustees and the actuaries. The long-term
expected rate of return was determined using a building block method in which
best-estimate ranges of expected future real rates of return (expected returns,
net of pension plan investment expense and inflation) are developed for each
major asset class.
These ranges are combined to produce the long-term
expected rate of return by weighting the expected future real rates of return by
the target asset allocation percentage and by adding expected inflation.
- 58 -
Note 9.
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
PENSION PLAN (CONTINUED)
Public Employees Retirement System (PERS) (Continued)
Long-Term Rate of Return (Continued)
Best estimates of arithmetic real rates of return for each major asset class
included in PERS's target asset allocation as of June 30, 2017 are summarized
in the following table:
Target
Long-Term Expected
Asset Class
Allocation
Real Rate of Return
Absolute Return/Risk Mitigation
5.00 %
5.51 %
Cash Equivalents
5.50
1.00
U.S. Treasuries
3.00
1.87
Investment Grade Credit
10.00
3.78
Public High Yield
2.50
6.82
Global Diversified Credit
5.00
7.10
Credit oriented Hedge Funds
1.00
6.60
Debt related Private Equity
2.00
10.63
Debt related Real Estate
1.00
6.61
Private Real Asset
2.50
11.83
Equity related Real Estate
6.25
9.23
U.S. Equity
30.00
8.19
Non-U.S. Developed Markets Equity
11.50
9.00
Emerging Market Equities
6.50
11.64
BuyoutsNenture Capital
8.25
13.08
100.00 %
Discount Rate
The discount rate used to measure the total pension liability was 5.00% as of
June 30, 2017. This single blended discount rate was based on the long-term
expected rate of return on pension plan investments of 7.00%, and a municipal
bond rate of 3.58% as of June 30, 2017 based on the Bond Buyer GO 20-Bond
Municipal Bond Index which includes tax-exempt general obligation municipal
bonds with an average rating of AA/Aa or higher. The projection of cash flows
used to determine the discount rate assumed that contributions from plan
members will be made at the current member contribution rates and that
contributions from employers will be made based on the contribution rate in the
most recent fiscal year. The local employers contributed 100% of their actuarially
determined contributions. Based on those assumptions, the plan's fiduciary net
position was projected to be available to make projected future benefit payments
of current plan members through 2040.
- 59 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 9.
PENSION PLAN (CONTINUED)
Public Employees Retirement System (PERS) (Continued)
Discount Rate (Continued)
Therefore, the long-term expected rate of return on plan investments was applied
to projected benefit payments through 2040, and the municipal bond rate was
applied to projected benefit payments after that date in determining the total
pension liability.
Sensitivity of The Collective Net Pension Liability to Changes in the Discount
Rate
The following presents the collective net pension liability of the participating
employers as of (measurement dates) June 30, 2017 and June 30, 2016,
calculated using the discount rate as disclosed above as well as what the
collective net pension liability would be if it was calculated using a discount rate
that is 1 -percentage point lower or 1- percentage-point higher than the current
rate:
Borough's proportionate share
of the pension liability
$
Borough's proportionate share
of the pension liability
$
December 31, 2017
1% Decrease
4.00%
698,774
$
At Current
Discount Rate
5.00%
563,269
$
December 31, 2016
1% Decrease
2.98%
678,225
$
At Current
Discount Rate
3.98%
553,480
$
Pension Plan Fiduciary Net Position.
1% Increase
6.00%
450,377
1% Increase
4.98%
449,769
Detailed information about the pension plan's fiduciary net position is available in
the separately issued Financial Report for the State of New Jersey Public
Employees Retirement System (PERS) or by visiting their website at
www. state. nj. us/treasury/pensions.
Note 10.
POST EMPLOYMENT HEAL TH BENEFITS
The Borough presently does not provide for Post Employment Health Benefits upon
retirement.
- 60 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 11.
DEFERRED COMPENSATION PLAN
The Borough of Roosevelt offers its employees a Deferred Compensation Plan
created in accordance with the provisions of N.J.S. 43:15B-1 et seq., and the Internal
Revenue Code, Section 457.
The Plan, available to all municipal employees,
permits them to defer a portion of their salary until future years.
The deferred
compensation is not available to employees until termination, retirement, death or
unforeseeable emergency.
The "Small Business Job Protective Act of 1996" modified several provisions of
Section 457 of the Internal Revenue Code. The most significant change in the law
related to the ownership of the fund.
All amounts of compensation deferred under the Plan, all property and rights
purchased with those amounts, and all income attributable to those amounts,
property or rights are (until paid or made available to the employee or other
beneficiary) solely the property and rights of the employees.
The Deferred
Compensation Plan is administered by the Equitable Life Assurance Company.
Note 12.
INTERFUNDS RECEIVABLE/PAYABLE
Note 13.
lnterfund receivable and payable balances at December 31, 2017 were as follows:
Fund
Due From
Due To
Current
$
189,412.61
$
32,044.60
Grant
32,044.60
Trust
12,720.11
11,050.50
General Capital
15,983.04
Water-Sewer Utility Operating
257,977.73
191,082.22
Water-Sewer Utility Capital
273,960.77
$
508,138.09
$
508, 138.09
RISK MANAGEMENT
The Borough together with other governmental units are members of the Monmouth
County Municipal Joint Insurance Fund (the "Fund"). The Fund, which is organized
and operated pursuant to the regulatory authority of the Departments of Insurance
and Community Affairs, State of New Jersey, provides for a pooling of risks, subject
to established limits and deductibles.
In addition, the Fund has obtained cost
effective reinsurance and excess liability coverages for participant local units.
For the year ending December 31, 2017, the Fund provided coverage for Property,
Boiler and Machinery, Automobile, General Liability, Workmen's Compensation and
Public Employee Blanket Bond.
- 61 -
BOROUGH OF ROOSEVELT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2017
Note 13.
RISK MANAGEMENT (CONTINUED)
The Borough has contracted with a private insurance carrier related to public
officials' surety bond coverage and public officials' liability insurance. The coverage
is subject to certain policy limits and deductible amounts. The coverage is designed
to minimize the impact of any potential losses to the Borough for matters which may
have been caused or related to the Borough or its employees.
The Borough's
employees are covered through the State of New Jersey Health Benefits Program.
Note 14.
CONTINGENT LIABILITIES
A Litigation
There are no matters of litigation that would, in the result of an adverse opinion, have
a material impact on the financial condition of the Borough.
B. Grants
The Borough of Roosevelt participates in federally and state assisted grant
programs.
These programs are subject to program compliance audits by the
granters or their representatives. The Borough is potentially liable for expenditures
which may be disallowed pursuant to the terms of these grant programs.
Management is not aware of any material items of noncompliance which would result
in the disallowance of program expenditures.
C. Compensated Absences
The Borough allows employees to carryover unused vacation days at the end of the
year. The amount of liability is minimal. Unused sick time does not accumulate and
therefore no liability exists as of December 31, 2017.
D. State Tax Appeals
There was one state tax appeal pending at December 31, 2017. The outcome as of
the date of this report has not been determined; however, in the event of an adverse
ruling it is not expected to have a negative impact on the financial condition of the
Borough.
- 62 -
COMBINING AND INDIVIDUAL FUND AND
ACCOUNTS STATEMENTS
CURRENT FUND
BOROUGH OF ROOSEVELT
CURRENT FUND
Exhibit B
Sheet 1 of 2
COMPARATIVE STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCE·
REGULATORY BASIS
AS OF DECEMBER 31, 2017 AND 2016
Balance
Balance
December 31,
December 31,
2017
2016
ASSETS
Cash and Cash Equivalents
$
1,269,223.23
$
921,642.19
$
1,269,223.23
$
921,642.19
Receivables and Other Assets with Full Reserves:
Delinquent Property Taxes
$
66,543.49
$
39,809.83
Tax Title Liens
9,094.47
Foreclosed Property
181,700.00
181,700.00
Revenue Accounts Receivable
300.00
1,135.04
lnterfunds Receivable:
Due From Water-Sewer Operating Fund
178,362.61
284,529.79
Due from Payroll Fund
11,050.50
$
437,956.60
$
678,015.38
Total Current Fund
$
1,707,179.83
$
1,599,657.57
Grant Fund:
Due from Current Fund
$
32,044.60
$
31,703.78
Grants Receivable
2,893.19
5,893.19
Total Grant Fund
$
34,937.79
$
37,596.97
Total Assets
$
1,742,117.62
$
1,637,254.54
- 63 -
BOROUGH OF ROOSEVELT
CURRENT FUND
Exhibit B
Sheet 2 of 2
COMPARATIVE STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCE-
REGULATORY BASIS
AS OF DECEMBER 31, 2017 AND 2016
Balance
Balance
December 31,
December 31,
2017
2016
LIABILITIES. RESERVES AND FUND BALANCE
Current Fund:
Liabilities:
Appropriation Reserves
$
171,751.57
$
114,416.34
Reserve for Encumbrances
11,397.08
19,360.01
Prepaid Taxes
121,878.23
6,296.77
Accounts Payable
20,340.00
8,021.00
Due to State of New Jersey -
Chapter 20 P.L. 1971
1,374.89
1,124.89
Various
25.00
Local District School Tax Payable
301,005.50
296,532.50
lnterfunds Payable -
Due to Grant Fund
32,044.60
31,703.78
Due County for Added and Omitted Taxes
39.53
81.76
Reserve for:
Cable Television, Appropriated
5,000.00
5,000.00
Total Liabilities
$
664,856.40
$
482,537.05
Reserve for Receivables and Other Assets
$
437,956.60
$
678,015.38
Fund Balance
$
604,366.83
$
439,105.14
Total Current Fund
$
1,707, 179.83
$
1,599,657.57
Grant Fund:
Appropriated Reserves
$
29,592.03
$
32,086.97
Unappropriated Reserves
594.26
Reserve for Encumbrances
4,751.50
5,510.00
Total Grant Fund
$
34,937.79
$
37,596.97
Total Liabilities, Reserves and Fund Balance
$
1,742,117.62
$
1,637,254.54
- 64 -
BOROUGH OF ROOSEVELT
CURRENT FUND
Exhibit B-1
Sheet 1 of 2
COMPARATIVE STATEMENT OF OPERATIONS AND CHANGES IN FUND BALANCE -
REGULATORY BASIS
FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016
Revenues and Other Income Realized:
Fund Balance Utilized
Miscellaneous Revenues Anticipated
State Aid
Grants
Receipts from Delinquent Taxes
Receipts from Current Taxes
NonbudgetRevenue
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
Current Appropriations Cancelled
Prior Year lnterfunds Liquidated
Allocated to School and County Taxes
Total Income
Expenditures:
Budget Appropriations:
Within "CAPS":
General Government
Land Use
Insurance
Public Safety
Public Works
Health and Human Services
Parks and Recreation
Utilities
Other Common Functions
Sanitation
Deferred Charges and Statutory Expenditures
- 65 -
2017
$
345,000.00
81,849.00
4,537.65
48,904.30
762,496.52
43,869.53
73,405.53
25,768.12
267,913.43
1,839,881.43
$
3,493,625.51
$
359,486.00
30,700.00
58,500.00
38,600.00
123,250.00
16,200.00
29,200.00
29,500.00
1,500.00
32,000.00
78,000.00
2016
$
391,000.00
15,085.00
81,849.00
17,000.00
45,169.46
759,772.78
35,422.11
91,630.78
26,445.10
1,825,686.99
$
3,289,061.22
$
326,187.00
30,693.00
41,356.00
52,750.00
150,170.00
16,700.00
28,442.00
37,200.00
2,000.00
31,000.00
60,445.00
BOROUGH OF ROOSEVELT
CURRENT FUND
Exhibit B-1
Sheet 2 of 2
COMPARATIVE STATEMENT OF OPERATIONS AND CHANGES IN FUND BALANCE·
REGULATORY BASIS
FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016
Expenditures (Continued):
Budget Appropriations (Continued):
Excluded from "CAPS":
Insurance
Public Safety
$
26, 171.00
Sanitation
65,660.00
General Government
Grant Programs
4,537.65
Capital Improvements
30,000.00
Debt Service
13,750.00
Deferred Charges and Statutory Expenditures
15,377.24
Reserve for Uncollected Taxes
180,000.00
Local District School Taxes
1,586,400.00
County Taxes
253,441.90
County Taxes -Added and Omitted
39.53
lnterfund Advanced
11,050.50
Total Expenditures
$
2,983,363.82
Excess in Revenue over Expenditures
$
510,261.69
Fund Balance, January 1
439, 105.14
$
949,366.83
Decreased By:
Utilized As Anticipated Revenue
345,000.00
Fund Balance, December 31
$
604,366.83
- 66-
$
144.00
7,421.00
64,400.00
36,400.00
17,000.00
45,000.00
14,000.00
24,891.46
180,000.00
1,577,451.00
248,154.23
81.76
272,703.18
$
3,264,589.63
$
24,471.59
805,633.55
$
830,105.14
391,000.00
$
439,105.14
Exhibit B-2
BOROUGH OF ROOSEVELT
CURRENT FUND
STATEMENT OF REVENUES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2017
Budget
Excess
as
or
Modified
Realized
(Deficit)
Fund Balance Anticipated
$
345,000.00
$
345,000.00
State Aid Without Offsetting Appropriations:
Consolidated Municipal Property Tax Relief Aid
$
2,736.00
$
2,736.00
Energy Receipts Tax
79,113.00
79, 113.00
$
81,849.00
$
81,849.00
Public and Private Programs Offset With Appropriations:
Clean Communities Program
$
4,000.00
$
4,000.00
Recycling Tonnage Grant
537.65
537.65
$
4,537.65
$
4,537.65
Other Special Items:
Recreation Fees
$
10,000.00
$
(10,000.00)
Receipts from Delinquent Taxes
$
43,000.00
$
48,904.30
$
5,904.30
Amount to be Raised by Taxation for Support of
Municipal Budget:
Local Tax for Municipal Purposes
$
648,045.24
$
762,496.52
$ 114,451.28
Budget Totals
$ 1, 132,431.89
$ 1,242,787.47
$ 110,355.58
NonbudgetRevenue
43,869.53
43,869.53
$ 1,132,431.89
$ 1,286,657.00
$ 154,225.11
- 67 -
Exhibit B-3
Sheet 1of5
BOROUGH OF ROOSEVELT
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2017
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
GENERAL GOVERNMENT FUNCTIONS
General Administration:
Salaries and Wages
$
58,956.00
$
58,956.00
$
58,694.88
$
261.12
Data Processing
17,000.00
18,500.00
16,652.45
1,847.55
Other Expenses
18,000.00
18,000.00
15,513.21
$
300.14
2,186.65
Mayor and Council:
Other Expenses
1,800.00
1,800.00
832.96
967.04
Municipal Clerk:
Salaries and Wages
62,150.00
62,150.00
57,599.72
4,550.28
Other Expenses
39,600.00
39,600.00
35,799.77
35.80
3,764.43
Financial Administration:
Salaries and Wages
21,873.00
21,873.00
20,698.04
1,174.96
Other Expenses
4,650.00
4,650.00
1,849.14
70.76
2,730.10
Audit Services:
O>
Other Expenses
11,100.00
11,100.00
11,000.00
100.00
co
Revenue Administration:
Salaries and Wages
8,140.00
8,140.00
8,140.00
Other Expenses
7,750.00
7,750.00
4,369.11
88.78
3,292.11
Tax Assessment Administration:
Salaries and Wages
9,167.00
9,167.00
8,987.00
180.00
Other Expenses
3,600.00
6,100.00
5,786.22
313.78
Legal Services and Costs:
Other Expenses
75,700.00
75,700.00
42,906.46
2,500.00
30,293.54
Engineering Services and Costs:
Other Expenses
16,000.00
16,000.00
13,253.75
2,746.25
LAND USE ADMINISTRATION
Planning Board:
Salaries and Wages
4,100.00
4,100.00
1,544.00
2,556.00
Other Expenses
13,500.00
13,500.00
3,378.27
10,121.73
Zoning Officer:
Salaries and Wages
8,900.00
8,900.00
6,110.00
2,790.00
Other Expenses
800.00
800.00
96.67
703.33
Code Enforcement:
Salaries and Wages
1,000.00
1,000.00
500.00
500.00
Housing Inspection:
Salaries and Wages
2,400.00
2,400.00
1,500.00
900.00
Exhibit B-3
~heet 2 of 5
BOROUGH OF ROOSEVELT
CURRENT FUND
STATEMENT OF EXPENDITURES- REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2017
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
INSURANCE
Purchase of Insurance:
Liability
$
13,000.00
$
13,000.00
$
10,972.26
$
2,027.74
Worker Compensation
16,000.00
16,000.00
15,384.88
615.12
Employee Group Plans
28,000.00
28,000.00
5,490.56
22,509.44
Unemployment Compensation Insurance
1,500.00
1,500.00
1,129.89
370.11
PUBLIC SAFETY FUNCTIONS
Office of Emergency Management:
Other Expenses
500.00
500.00
500.00
Aid to Volunteer First Aid:
Other Expenses
20,000.00
20,000.00
20,000.00
Fire Department:
Other Expenses
2,000.00
2,000.00
928.12
1,071.88
O>
School Crossing Guards:
c.o
Salaries and Wages
10,000.00
10,000.00
9,311.86
688.14
Municipal Court:
Other Expenses
6,000.00
6,000.00
6,000.00
Public Defender:
Other Expenses
100.00
100.00
100.00
PUBLIC WORKS FUNCTIONS
Streets and Road Maintenance:
Salaries and Wages
7,000.00
7,000.00
3,490.75
3,509.25
Other Expenses
35,750.00
31,750.00
16,270.66
$
5,795.79
9,683.55
Solid Waste Collection:
Other Expenses
24,500.00
24,500.00
24,154.25
345.75
Public Buildings and Grounds:
Other Expenses
58,600.00
58,600.00
41,835.09
78.84
16,686.07
Vehicle Maintenance:
Other Expenses
1,400.00
1,400.00
887.60
512.40
HEAL TH AND HUMAN SERVICES FUNCTIONS
Public Health Services:
Other Expenses
9,000.00
9,000.00
6,045.00
2,015.00
940.00
Environmental Commission:
Salaries and Wages
2,200.00
2,200.00
1,815.45
384.55
Other Expenses
4,000.00
4,000.00
1,138.04
2,861.96
Animal Control:
Other Expenses
1,000.00
1,000.00
918.00
82.00
Exhibit B-3
Sheet 3 of 5
BOROUGH OF ROOSEVELT
CURRENT FUND
STATEMENT OF EXPENDITURES- REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2017
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
PARK AND RECREATION FUNCTIONS
Recreation Services and Programs:
Salaries and Wages
$
12,000.00
$
12,000.00
$
9,783.37
$
2,216.63
Other Expenses
17,200.00
17,200.00
3,761.17
$
28.66
13,410.17
OTHER COMMON OPERATING FUNCTIONS
Celebration of Public Events:
Other Expenses
1,500.00
1,500.00
1,500.00
UTILITY EXPENSE AND BULK PURCHASES
Electricity
6,000.00
6,000.00
5,069.13
930.87
Street Lighting
10,500.00
10,500.00
8,838.93
1,661.07
Telephone
6,000.00
6,000.00
4,736.84
446.31
816.85
Gas (Natural and Propane)
6,000.00
6,000.00
5,074.85
925.15
.......
Gasoline
1,000.00
1,000.00
656.55
37.00
306.45
0
LANDFILUSOLID WASTE DISPOSAL COSTS
Landfill Tipping Fees:
Other Expenses
32,000.00
32,000.00
26,501.55
5,498.45
Total Operations within "CAPS"
718,936.00
718,936.00
546,906.45
11,397.08
160,632.47
Total Operations Including Contingent - within "CAPS"
$
718,936.00
$
718,936.00
$
546,906.45
$
11,397.08
$
160,632.47
Detail:
Salaries and Wages
$
207,886.00
$
207,886.00
$
188,175.07
$
19,710.93
Other Expenses (Including Contingent)
511,050.00
511,050.00
358,731.38
$
11,397.08
140,921.54
DEFERRED CHARGES AND STATUTORY EXPENDITURES -
MUNICIPAL WITHIN "CAPS"
Deferred Charges:
Anticipated Deficit Water-Sewer Utility
$
46,000.00
$
46,000.00
$
20,231.88
$ 25,768.12
Statutory Expenditures:
Contribution to:
Public Employees' Retirement System:
Other Expenses
11,000.00
11,000.00
7,131.00
$
3,869.00
Social Security System (OAS.I.)
17,000.00
17,000.00
14,118.22
2,881.78
Defined Contribution Benefit Plan
4,000.00
4,000.00
4,000.00
Total Deferred Charges and Statutory Expenditures -
Municipal within "CAPS"
$
78,000.00
$
78,000.00
$
41,481.10
$
10,750.78
25,768.12
Exhibit B-3
Sheet 4 of 5
BOROUGH OF ROOSEVELT
CURRENT FUND
STATEMENT OF EXPENDITURES- REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2017
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
Total General Appropriations for Municipal Purposes
within "CAPS"
$
796,936.00
$
796,936.00
$
588,387.55
$
11,397.08
$
171,383.25
$ 25,768.12
OPERATIONS- EXCLUDED FROM "CAPS"
Other Operations - Excluded from "CAPS":
Recycling Tax
$
1,400.00
$
1,400.00
$
1,032.48
$
367.52
Total Other Operations - Excluded from "CAPS"
1,400.00
1,400.00
__
1,032.48
367.52
Shared Service Agreements:
Solid Waste Collection( Borough of Hightstown)
Other Expenses
64,260.00
64,260.00
64,260.00
911 Communication Center (County of Monmouth)
--.J
Other Expenses
7,421.00
7,421.00
7,420.20
0.80
.......
Fire Protection Services( Millstone Fire District No. 1)
Other Expenses
_J§._?50.00
18,750.00
18,750.00
Total Shared Service Agreements
90,431.00
90,431.00
90,430.20
0.80
Public and Private Programs Offset by Revenues:
Clean Communities Program
4,000.00
4,000.00
4,000.00
Recycling Tonnage Grant
537.65
537.65
537.65
Total Public and Private Programs Offset by Revenues
4,537.65
4,537.65
4,537.65
Total Operations - Excluded from "CAPS"
$
96,368.65
$
96,368.65
$
96,000.33
$
368.32
Detail:
Other Expenses
$
96,368.65
$
96,368.65
$
96,000.33
$
368.32
CAPITAL IMPROVEMENTS- EXCLUDED FROM "CAPS"
Capital Improvement Fund
$
30,000.00
$
30,000.00
$ _]Q,000.00
Total Capital Improvements Excluded from "CAPS"
$
30,000.00
$
30,000.00
$
30,000.00
Municipal Debt Service - Excluded From "CAPS"
Payment of Bond Principal
Interest on Bonds
Total Municipal Debt Service Excluded from "CAPS"
Deferred Charges - Municipal - Excluded From "CAPS"
Deferred Charges to Future Taxation - Unfunded -
Ord. 264 South Valley Road Improvements
Total Def. Charges - Municipal - Excluded From "CAPS"
Total General Appropriations for Municipal Purposes
Excluded from "CAPS"
.....,i
I\.)
Total General Appropriations - Excluded from "CAPS"
Subtotal General Appropriations
RESERVE FOR UNCOLLECTED TAXES
Total General Appropriations
BOROUGH OF ROOSEVELT
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2017
Budget
$
10,000.00
3,750.00
13 750.00
15,377.24
15,377.24
$ ___1§_5,495.89
$
155,495.89
$
952,431.89
180,000.00
$
1,132,431.89
$
$
$
$
$
Budget After
Modification
10,000.00
3,750.00
13,750.00
15,377.24
15,377.24
155,495.89
155,495.89
952.431.89
180,000.00
1,132,431.89
Cash Disbursed
RUT
Grant
Paid or
Charged
$
10,000.00
__
3,750.00
----11.750.00
15,377.24
---1.§,377.24
$
155,127.57
$
155,127.57
$
743,515.12
__!!!Q,000.00
$
923,515.12
$
738,977.27
180,000.00
4,537.85
$
923,515.12
Exhibit B-3
Sheet 5 of 5
Encumbered
Reserved
Cancelled
$
368.32
$
368.32
$
11,397.08
$
171,751.57
$ 25,768.12
$
11,397.08
$
171,751.57
$ 25,768.12
Year
2016
2017
I
-.J
w
BOROUGH OF ROOSEVELT
CURRENT FUND
STATEMENT OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY
Balance
December 31,
Tax
Added
Collections
2016
1fil'.Y
Taxes
2016
2017
$
39,809.83
$ ~809.83
$ 2,488,921.44
$
6,296.77
2,411,831.18
$
39,809.83
$ 2,488,921.44
$
6,296.77
$ 2,451,641.01
Detail OF Amount to be Raised by Taxation - Municipal Purposes:
Cash Received
Senior Citizen and Veterans Deductions
Prepaid Taxes
Less Allocated to:
Local School district
County
Add: Reserve for Uncollected Taxes
Amount to be Raised by Taxation
Delinquent Tax Revenue:
2017 Collections
Tax Title Liens
$ 2,411,831.18
4,250.00
6,296.77
$ 2,422,377.95
1,586,400.00
253,481.43
180,000.00
$
762,496.52
$
39,809.83
9,094.47
$
48,904.30
State Share
Senior Citizens'
and Veterans'
Deductions
Allowed
$ __
4,250.00
$
4,250.00
Transfer
to Tax
Title Liens
$
$
Exhibit B-4
Sheet 1 of 2
Balance
December 31,
2017
66,543.49
66,543.49
BOROUGH OF ROOSEVELT
CURRENT FUND
Exhibit B-4
Sheet 2 of 2
STATEMENT OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY
ANALYSIS OF 2017 PROPERTY TAX LEW
Tax Yield
General Purpose Taxes
Added Taxes (54:4-63.1et. Seq.)
Tax Levy
Local District School Taxes
County Taxes:
County Taxes
County Library Tax
County Health Tax
County Open Space Tax
County Added and Omitted Taxes
Total County Taxes
Local Tax for Municipal Purpose
Add: Additional Tax Levy
Total Tax Levy
- 74-
$
$
$
2,488,532.71
388.73
$
2,488,921.44
$
1,586,400.00
220,579.73
15,454.77
4,450.07
12,957.33
39.53
253,481.43
$
1,839,881.43
648,045.24
994.77
649,040.01
$
2,488,921.44
BOROUGH OF ROOSEVELT
CURRENT FUND
STATEMENT OF TAX TITLE LIENS RECEIVABLE
BALANCE, DECEMBER 31, 2016
DECREASED BY
Collections
- 75 -
Exhibit B-5
$
9,094.47
9,094.47
Exhibit B-6
Sheet 1 of 2
BOROUGH OF ROOSEVELT
CURRENT FUND
STATEMENT OF 2016 APPROPRIATION RESERVES
Balance
December31, 2016
Balance
Appropriation
Reserve for
After
Paid or
Balance
Reserves
Encumbrances
Transfers
Charged
Lapsed
Salaries and Wages:
Operations - Within "CAPS":
General Administration
$
1,156.00
$
1,156.00
$
1,156.00
Municipal Clerk
1,887.84
1,887.84
$
1,076.17
811.67
Financial Administration
1,215.04
1,215.04
1,215.04
Tax Assessment Administration
180.00
180.00
180.00
Planning Board
2,912.50
2,912.50
2,912.50
Zoning Officer
3,112.16
3,112.16
3, 112.16
School Crossing Guards
1,029.89
1,029.89
1,029.89
Streets and Road Maintenance
9,775.76
9,775.76
9,775.76
Environmental Commission
406.60
406.60
406.60
Recreation Services and Programs
219.98
219.98
219.98
Code Enforcement
612.00
612.00
612.00
-....J
Housing Inspection
548.00
548.00
548.00
O>
I
Total Salaries and Wages
$
23,055.77
$
23,055.77
$
1,076.17
$
21,979.60
Other Expenses:
Operations - Within "CAPS":
General Administration:
Data Processing
$
2,113.91
$
2, 113.91
$
149.00
$
1,964.91
Other Expenses
829.45
$
465.73
1,295.18
610.72
684.46
Mayor and Council
71.62
271.62
255.72
15.90
Municipal Clerk
1,127.15
848.82
1,975.97
1,288.45
687.52
Financial Administration
149.57
2,285.48
2,435.05
2,287.48
147.57
Audit Services
350.00
350.00
350.00
Revenue Administration
202.24
3,050.00
3,252.24
3,050.00
202.24
Tax Assessment Administration
832.78
617.78
97.50
520.28
Legal Services and Costs
6,732.89
570.00
7,302.89
4,407.12
2,895.77
Engineering Services and Costs
1,513.23
2,500.00
4,013.23
1,898.00
2, 115.23
Planning Board
5,245.88
5,245.88
3,240.88
2,005.00
Zoning Officer
727.94
727.94
727.94
Purchase of Insurance:
Liability
291.64
291.64
291.64
Worker Compensation
178.18
178.18
178.18
Employee Group Plans
3,427.52
1,872.36
5,299.88
1,872.36
3,427.52
Unemployment Compensation Insurance
438.07
438.07
227.42
210.65
Exhibit B-6
Sheet 2 of 2
BOROUGH OF ROOSEVELT
CURRENT FUND
STATEMENT OF 2016 APPROPRIATION RESERVES
Balance
December 31, 2016
Balance
Appropriation
Reserve for
After
Paid or
Balance
Reserves
Encumbrances
Transfers
Charged
Lapsed
Other Expenses(Continued):
Operations - Within "CAPS": (Continued)
Office of Emergency Management
$
484.83
$
484.83
$
484.83
Fire Department
8,366.70
$
1,567.50
9,934.20
$
7,542.27
2,391.93
Public Defender
100.00
100.00
100.00
Streets and Road Maintenance
3,327.46
1,406.88
4,734.34
2,109.20
2,625.14
Solid Waste Collection
500.00
500.00
500.00
Public Buildings and Grounds
1,838.02
1,750.69
3,588.71
1,744.45
1,844.26
Vehicle Maintenance
507.05
65.00
572.05
572.05
Public Health Services
2,955.00
2,955.00
2,015.00
940.00
Environmental Commission
3,217.42
274.38
3,491.80
24.38
3,467.42
Animal Control
1,198.00
1,198.00
1,198.00
-.J
Recreation Services and Programs
1,776.00
310.17
2,086.17
310.17
1,776.00
-.J
Electricity
1,371.56
475.00
1,846.56
590.89
1,255.67
Street Lighting
2,945.41
800.00
3,745.41
811.26
2,934.15
Telephone
1,730.55
460.00
2,190.55
417.45
1,773.10
Gas (Natural and Propane)
4,246.29
650.00
4,896.29
921.53
3,974.76
Gasoline
1,961.18
8.00
1,969.18
8.00
1,961.18
Landfill Tipping Fees
3,783.06
3,783.06
1,845.83
1,937.23
Deferred Charges and Statutory Expenditures -
Municipal Within "CAPS":
Statutory Expenditures:
Contribution to:
Public Employees' Retirement System
12,319.00
12,319.00
12,319.00
Social Security System (OAS.I.)
77.26
77.26
72.33
4.93
Defined Contribution Benefit Plan
5,000.00
5,000.00
5,000.00
Operations - Excluded from "CAPS":
Recycling Tax
333.44
333.44
74.73
258.71
Shared Services:
Borough Clerk Services (Borough of Hightstown)
9,089.47
9,104.47
9, 103.51
0.96
911 Communications Center(County of Monmouth)
0.80
0.80
0.80
Total Other Expenses
$
91,360.57
$
19,360.01
$
110,720.58
$
59,294.65
$
51,425.93
Grand Total
$
114,416.34
$
19,360.01
$
133,776.35
$
60,370.82
$
73,405.53
BOROUGH OF ROOSEVELT
CURRENT FUND
Exhibit B-7
STATEMENT OF LOCAL DISTRICT SCHOOL TAXES PAYABLE
BALANCE, DECEMBER 31, 2016
School Tax Payable
$
296,532.50
School Tax Deferred
491,850.50
$
788,383.00
INCREASED BY
Levy - School Year July 1, 2017 to
June 30, 2018
1,586,400.00
$
2,374,783.00
DECREASED BY
Payments
1,581,927.00
BALANCE. DECEMBER 31. 2017
$
792,856.00
ANALYSIS OF BALANCE
School Tax Payable
$
301,005.50
School Tax Deferred
491,850.50
$
792,856.00
2017 LIABILITY FOR LOCAL SCHOOL TAX
Tax Paid
$
1,581,927.00
Less: Tax Payable, December 31, 2016
296,532.50
$
1,285,394.50
Add: Tax Payable, December 31, 2017
301,005.50
AMOUNT CHARGED TO OPERATIONS
$
1,586,400.00
- 78 -
Grant
Federal:
Green Communities Grant
Recreational Trails Grant
State:
Clean Communities Program
Recycling Tonnage Grant
BOROUGH OF ROOSEVELT
GRANT FUND
STATEMENT OF GRANTS RECEIVABLE
2017
Balance
Revenue
December 31,
Realized
2016
As Adopted
$
3,000.00
$
2,893.19
$
4,000.00
$
537.65
$
5,893.19
$
4,537.65
$
- 79 -
Exhibit B-8
Decreased by
Balance
Cash
December 31,
Receipt
2017
3,000.00
$
2,893.19
4,000.00
537.65
7,537.65
$
2,893.19
Grant
State:
NJ DEP:
Recycling Tonnage Grant
$
Clean Communities Program
CX>
Sustainable New Jersey Small Grant
0
Green Communities Grant
Recreational Trails Grant
Fund for Roosevelt
Municipal Alcohol Education
and Rehabilitation Fund
JIF Safety Grant
$
BOROUGH OF ROOSEVELT
GRANT FUND
STATEMENT OF APPROPRIATED RESERVES
2017
Budget
Balance
A1;mro12riation
December 31,
2016
As Adopted
Refunds
8,811.81
$
537.65
19,885.44
4,000.00
$
491.68
2,044.73
$
226.12
336.50
266.81
250.00
32,086.97
$
4,537.65
$
226.12
$
Exhibit B-9
Decreased by
Balance
Reserve for
December 31,
Disbursed
Encumbrances
2017
$
9,349.46
4,352.94
$
2,241.50
17,291.00
480.79
10.89
183.48
2,087.37
336.50
266.81
250.00
5,017.21
2,241.50
$
29,592.03
TRUSTANDAGENCYFUND
ASSETS
Cash and Cash Equivalents
$
Receivables and Other Assets:
lnterfund Receivable - Due from
())
Water-Sewer Operating Fund
.....
Total Assets and Other Debits
$
LIABILITIES AND RESERVES
Liabilities and Reserves:
lnterfund Payable -
Due to Current Fund
Due to State of New Jersey
Payroll Deductions Payable
Reserves
$
Total Liabilities and Reserves
$
BOROUGH OF ROOSEVELT
TRUST AND AGENCY FUND
COMBINING BALANCE SHEETS - REGULATORY BASIS
AS OF DECEMBER 31, 2017 AND 2016
Expendable Trust
Agency
Animal Control
Trust Other
Pai'.roll
2017
2016
2017
2016
2017
2016
880.80 $
396.80
$ 34,797.84 $
52,313.55
$
814.60
$ 2,132.12
12,720.11
880.80 $
396.80
$ 34,797.84
$
52,313.55
$ 13,534.71
$ 2, 132.12
=
$ 11,050.50
$
8.40
2,484.21
$ 2,132.12
880.80
388.40
$ 34,797.84 $
52,313.55
880.80 $
396.80
$ 34,797.84 $
52,313.55
$ 13,534.71
2, 132.12
Exhibit C
Totals
2017
2016
$ 36,493.24
$
54,842.47
12,720.11
$ 49,213.35
$
54,842.47
$ 11,050.50
$
8.40
2,484.21
2, 132.12
35,678.64
52,701.95
$ 49,213.35
$
54,842.47
BOROUGH OF ROOSEVELT
TRUST FUND
Exhibit C-1
STATEMENT OF RESERVE FOR ANIMAL CONTROL EXPENDITURES
BALANCE, DECEMBER 31 I 2016
INCREASED BY
Dog License Fees
Due to State of New Jersey
Late Fees/Miscellaneous
DECREASED BY
Expenditures
BALANCE, DECEMBER 31, 2017
BOROUGH LICENSE FEES COLLECTED
Year
Amount
2015
360.00
2016
558.00
$
918.00
AUDITOR'S NOTE:
R.S. 4:19-15.11
$
448.00
8.40
36.00
$
388.40
492.40
$
880.80
0.00
$
880.80
=====
"There shall be transferred from such special account to the general funds of the
Municipality any amounts then in such account which is in excess of the total amount paid
into such special account during the last two fiscal years next preceding."
- 82 -
Parking Offense
Historical Commission Donations
Recreation Donations
Fire Department Donations
Escrow Funds
CX>
Tax Sale Premiums
w
Public Defender- Millstone Township
Woodland Trail Memorial Fund
BOROUGH OF ROOSEVELT
TRUST OTHER FUND
STATEMENT OF RESERVE FOR TRUST DEPOSITS
Balance
December 31,
Increased
2016
By Receipts
$
11.00
315.00
250.00
$
100.00
100.00
18,650.55
32,500.00
32,000.00
$
257.00
450.00
230.00
800.00
$
52,313.55
$
33,350.00
$
Exhibit C-2
Balance
Decreased
December 31,
By Disbursed
2017
$
11.00
315.00
350.00
100.00
18,650.55
50,000.00
14,500.00
550.00
157.00
315.71
714.29
50,865.71
$
34,797.84
BOROUGH OF ROOSEVELT
TRUST OTHER FUND
STATEMENT OF PAYROLL DEDUCTIONS
Balance
Increased
December 31,
by Payroll
2016
Deductions
Federal Withholding Tax
$
30,163.00
$
Public Employees Retirement System:
Regular
1,005.89
12,363.14
Contributory Insurance
69.90
850.42
Social Security and Medicare Taxes
53,371.63
State Income Tax
770.07
9,873.05
New Jersey Unemployment/Family Leave
204.79
1,325.23
New Jersey Disability Tax
81.47
607.60
Employer Share Unemployment/Family
Leave/Disability
2,047.66
Health Insurance Deductions
10,101.36
Deferred Compensation
1,200.00
2, 132.12 $
121,903.09
$
Payroll Deductions
$
93,169.37
Social Security:
Current Fund
14,190.55
Water-Sewer Utility Operating Fund
12,495.51
Unemployment Taxes:
Current Fund
1,260.71
Water-Sewer Utility Operating Fund
786.95
$
121,903.09
- 84-
Exhibit C-3
Decreased
Balance
by Cash
December 31,
Disbursed
2017
30,163.00
12,327.58
$
1,041.45
849.20
71.12
53,371.68
(0.05)
9,665.76
977.36
1,328.05
201.97
596.71
92.36
2,047.66
10, 101.36
1, 100.00
100.00
121,551.00
$
2,484.21
GENERAL CAPITAL FUND
Exhibit D
BOROUGH OF ROOSEVELT
GENERAL CAPITAL FUND
COMPARATIVE STATEMENT OF ASSETS, LIABILITIES, RESERVES
AND FUND BALANCE- REGULATORY BASIS
AS OF DECEMBER 31, 2017 AND 2016
Balance
Balance
December 31,
December 31,
2017
2016
ASSETS
Cash and Cash Equivalents
$
116,226.01
$
89,456.81
Intergovernmental Accounts Receivable
New Jersey Department of Transportation
Grants Receivable
$
5,643.60
lnterfunds Receivable:
Due from Water-Sewer Utility Capital Fund
$
15,983.04
$
9,345.00
Deferred Charges to Future Taxation -
Funded
$
115,000.00
$
125,000.00
Unfunded
72,250.00
112,250.00
$
187,250.00
$
237,250.00
Total Assets
$
319,459.05
$
341,695.41
LIABILITIES. RESERVES AND FUND BALANCE
Other Liabilities and Reserves:
Bonds Payable
$
115,000.00
$
125,000.00
Capital Improvement Fund
66,603.15
66,603.15
Reserve for Building Improvements
18,495.50
18,495.50
Reserve for Encumbrances
5,348.00
$
205,446.65
$
210,098.65
Improvement Authorizations:
Funded
$
40,877.77
$
28,195.77
Unfunded
71,278.66
101,545.02
$
112, 156.43
$
129,740.79
Fund Balance
$
1,855.97
$
1,855.97
Total Liabilities, Reserves and Fund Balance
$
319,459.05
$
341,695.41
There were $72,250.00 Bonds and Notes Authorized but not Issued at December 31, 2017.
- 85 -
Exhibit D-1
BOROUGH OF ROOSEVELT
GENERAL CAPITAL FUND
ANALYSIS OF CASH AND CASH EQUIVALENTS
Balance
Balance
December 31,
Cash
Cash
Transfers
December 31,
2016
Receiots
Disbursed
From
To
2017
Fund Balance
$
1,855.97
$
1,855.97
Capital Improvement Fund
66,603.15
$
30,000.00
$
30,000.00
66,603.15
Due from NJ DOT
(5,643.60)
$
5,643.60
Due from Water-Sewer Utility Capital Fund
(9,345.00)
$
6,638.04
(15,983.04)
Reserve for Encumbrances
5,348.00
5,348.00
Reserve for Building Improvements
18,495.50
18,495.50
Improvement Authorizations:
co
Ordinance
(j)
Number
Improvement Description
228
Reconstruct Manholes
11,842.68
11,842.68
231
Reconstruction of Pine Drive Storm Sewers
8,409.82
8,409.82
234
Soil Removal
7,943.27
7,943.27
264
Road Improvements to South Valley Road
(9,733.64)
15,377.24
5,643.60
15-006
Road Improvements to Windsor Road
(971.34)
(971.34)
17-002
Municipal Building Improvements
11,970.00
5,348.00
30,000.00
12,682.00
$
89,456.81
$
45,377.24
$
18,608.04
$
40,991.60
$
40,991.60
$
116,226.01
BOROUGH OF ROOSEVELT
GENERAL CAPITAL FUND
Exhibit D-2
STATEMENT OF INTERGOVERNMENTAL ACCOUNTS RECEIVABLE
BALANCE, DECEMBER 31, 2016
DECREASED BY
Improvement Authorization Canceled
- 87 -
$
New Jersey
Department of
Transportation -
Ordinance #264
5,643.60
5,643.60
Ordinance
Number
231
264
I
CX>
2015-006
CX>
BOROUGH OF ROOSEVELT
GENERAL CAPITAL FUND
STATEMENT OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
Decreased
Decreased
Balance
by
by
Balance
December 31,
Budget
December 31,
Improvement Description
2016
Canceled
Appropriation
2017
Reconstruction of Pine Drive
Storm Sewers
$
62,250.00
$
62,250.00
Road Improvements to South
Valley Road
40,000.00
$
24,622.76 $
15,377.24
Road Improvements to
Windsor Road
10,000.00
10,000.00
$
112,250.00
$
24,622.76 $
15,377.24
$
72,250.00
Exhibit D-3
Analysis of Balance
Unexpended
Balance of
Improvement
Expenditures
Authorizations
$
62,250.00
$
971.34
__
9,028.66
$
971.34
$
71,278.66
Exhibit D-4
BOROUGH OF ROOSEVELT
GENERAL CAPITAL FUND
STATEMENT OF IMPROVEMENT AUTHORIZATIONS
2017 Authorizations
Balance
Capital
Balance
Ordinance
Ordinance
December 31, 2016
Improvement
Paid or
December 31, 2017
Number
Title
Date
Amount
Funded
Unfunded
Fund
Cancellation
Charged
Funded
Unfunded
228
Reconstruct Manholes
812712007
$
12,000.00 $
11,842.68
$
11,842.68
231
Reconstruction of Pine Dr.
Storm Sewers
212512008
175,000.00
8,409.82
$
62,250.00
8,409.82
$
62,250.00
234
Soil Removal
8/11/2008
18,000.00
7,943.27
7,943.27
264
Improvements to
00
South Valley Road
6/23/2014
280,000.00
30,266.36
$
30,266.36
<.O
15-006
Improvements to
Windsor Road
8/10/2015
40,000.00
9,028.66
9,028.66
Municipal Building
17-002
Improvements
5/8/2017
30,000.00
$
30,000.00
$
17,318.00
12,682.00
$
28,195.77
$
101,545.02 $
30,000.00 $
30,266.36
$
17,318.00
$
40,877.77
$
71,278.66
=
Unfunded
$
24,622.76
NJDOT Grant Receivable
5,643.60
$
30,266.36
Disbursed
$
11,970.00
Encumbered
__
5,348.00
$
17,318.00
BOROUGH OF ROOSEVELT
GENERAL CAPITAL FUND
STATEMENT OF CAPITAL IMPROVEMENT FUND
BALANCE. DECEMBER 31 I 2016
INCREASED BY
2017 Budget Appropriation
DECREASED BY
Appropriated to Finance Improvement Authorizations
BALANCE, DECEMBER 31, 2017
- 90 -
Exhibit D-5
$
66,603.15
30,000.00
$
96,603.15
30,000.00
$
66,603.15
Date of
Original
Puroose
Issue
Monmouth County Improvement Authority
12/4/2012
Pooled Loan Revenue (Refunding) Bonds
Serial Bonds
c.o
......
BOROUGH OF ROOSEVELT
GENERAL CAPITAL FUND
STATEMENT OF BONDS PAYABLE
Amount of
Original
Issue
Date
Amount
$ 165,000.00
12/1/2018 $
10,000.00
12/1/2019
10,000.00
12/1/2020
10,000.00
12/1/2021
10,000.00
12/1/2022
10,000.00
12/1/2023
10,000.00
12/1/2024
10,000.00
12/1/2025
15,000.00
12/1/2026
15,000.00
12/1/2027
15,000.00
Exhibit D-6
Balance
Balance
Interest
December 31,
December 31,
Rate
2016
Decreased
2017
3.00%
$
125,000.00 $ 10,000.00
$
115,000.00
3.00%
4.00%
4.00%
4.00%
4.00%
2.00%
3.00%
2.00%
2.00%
$
125,000.00
10,000.00
$
115,000.00
Ordinance
Number
231
264
co
N
2015-006
BOROUGH OF ROOSEVELT
GENERAL CAPITAL FUND
STATEMENT OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Balance
December 31,
Budget
Description
2016
Appropriation
Cancelled
Reconstruction of Pine Drive Storm Sewers
$
62,250.00
Improvements to South Valley Road
40,000.00
$
15,377.24
$
24,622.76
Road Improvements to Windsor Road
10,000.00
$
112,250.00
$
15,377.24
$
24,622.76
Exhibit D-7
Balance
December 31,
2017
$
62,250.00
10,000.00
$
72,250.00
WATER-SEWER UTILITY OPERATING FUND
BOROUGH OF ROOSEVELT
Exhibit E
Sheet 1 of 2
WATER-SEWER UTILITY OPERATING FUND
COMPARATIVE STATEMENT OF ASSETS, LIABILITIES, RESERVES
AND FUND BALANCE - REGULATORY BASIS
AS OF DECEMBER 31, 2017 AND 2016
Balance
Balance
December 31,
December 31,
2017
2016
ASSETS
Cash and Cash Equivalents
$
44,311.25
$
19,525.20
lnterfunds Receivable:
Due from Water-Sewer Utility Capital Fund
$
257,977.73
$
411, 198.30
Receivables and Other Assets:
Consumer Accounts Receivable
$
105,516.48
$
83,312.52
Total Assets
$
407,805.46
$
514,036.02
- 93 -
BOROUGH OF ROOSEVELT
Exhibit E
Sheet 2 of 2
WATER-SEWER UTILITY OPERATING FUND
COMPARATIVE STATEMENT OF ASSETS, LIABILITIES, RESERVES
AND FUND BALANCE - REGULATORY BASIS
AS OF DECEMBER 31, 2017 AND 2016
Balance
Balance
December 31,
December 31,
2017
2016
LIABILITIES, RESERVES AND
FUND BALANCE
Liabilities:
Appropriation Reserves
$
44,934.44
$
66,912.07
Other Liabilities and Reserves:
Reserve for Encumbrances
$
53,339.73
$
42,265.89
Prepaid Rents
1,380.50
2,577.44
Accrued Interest on Bonds and Loans
11,551.59
12,463.20
66,271.82
57,306.53
lnterfund Payable:
Due to Current Fund
178,362.61
284,529.79
Due to Payroll Trust
12,720.11
$
191,082.72
$
284,529.79
Reserve for Receivables and Inventory
$
105,516.48
$
83,312.52
Fund Balance
$
21,975.11
Total Liabilities, Reserves and Fund Balance
$
407,805.46
$
514,036.02
- 94 -
Exhibit E-1
BOROUGH OF ROOSEVELT
WATER-SEWER UTILITY OPERATING FUND
COMPARATIVE STATEMENT OF OPERATIONS AND CHANGE IN
OPERATING FUND BALANCE - REGULATORY BASIS
FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016
2017
2016
Revenue and Other Income Realized:
Fund Balance Utilized
$
21,975.11
$
61,059.09
Rents
713,820.20
743,887.34
Cell Tower Fees
79,612.29
75,874.11
Interest on Delinquent Rents
10,254.58
10,215.77
Deficit (General Budget)
20,231.88
NonbudgetRevenue
111.57
146.14
Other Credits to Income
Unexpended Balance of Appropriation Reserves
16,624.19
39,231.09
Total Income
$
862,629.82
$
930,413.54
Expenditures:
Operating
$
566,349.33
$
612,456.00
Capital Improvements
14,500.00
Debt Service
273,709.49
257,782.43
Deferred Charges and Statutory Expenditures
22,571.00
23,700.00
Total Expenditures
$
862,629.82
$
908,438.43
Excess/(Deficit) in Revenue
21,975.11
Statutory Excess to Fund Balance
21,975.11
Fund Balance, January 1
21,975.11
61,059.09
$
21,975.11
83,034.20
Decreased by:
Water-Sewer Utility Operating Budget
21,975.11
61,059.09
Fund Balance, December 31
$
21,975.11
- 95 -
BOROUGH OF ROOSEVELT
WATER-SEWER UTILITY OPERATING FUND
STATEMENT OF REVENUES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2017
Fund Balance Anticipated
Rents
Cell Tower Fees
Interest on Delinquent Rents
Deficit (General Budget)
Nonbudget Revenue
ANALYSIS OF NON BUDGET REVENUE
Interest on Investments:
Received from Water-Sewer Utility
Capital Fund
Received by Water-Sewer Utility
Operating Fund
Anticipated
$
21,975.11
743,887.34
75,874.11
10,215.77
46,000.00
$ 897,952.33
$ 897,952.33
- 96 -
Realized
$
21,975.11
713,820.20
79,612.29
10,254.58
20,231.88
$ 845,894.06
111.57
$ 846,005.63
$
1.18
110.39
$
111.57
Exhibit E-2
Excess
or
(Deficit)
$
(30,067.14)
3,738.18
38.81
(25,768.12)
$
(52,058.27)
111.57
$
(51,946. 70~
Exhibit E-3
BOROUGH OF ROOSEVELT
WATER-SEWER UTILITY OPERATING FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
YEAR ENDED DECEMBER 31, 2017
Budget After
Paid or
Budget
Modification
Charaed
Encumbered
Reserved
Cancelled
OPERATING
Salaries and Wages
$
158,232.00
$
167,232.00
$
163,846.01
$
3,385.99
Other Expenses
443,317.33
434,117.33
304,584.09
$
53,339.73
41,193.51
$
35,000.00
Total Operating
$
601,549.33
$
601,349.33
$
468,430.10
$
53,339.73
$
44,579.50
$
35,000.00
DEBT SERVICE
Payment of Bond Principal
$
110,000.00
$
110,000.00
$
110,000.00
Interest on Bonds
75,400.00
75,400.00
75,399.97
$
0.03
co
Principal and Interest on 1982 Farmers Home
-...J
Administration Loan
18,000.00
18,000.00
17,696.72
303.28
NJEIT 2010 Loan
27,930.00
27,930.00
27,919.52
10.48
NJEIT 2016 Loan
42,702.00
42,702.00
42,693.28
$
8.72
Total Debt Service
$ ~032.00 $
274,032.00
$
273,709.49
$
322.51
DEFERRED CHARGES AND STATUTORY EXPENDITURES
Statutory Expenditures:
Contribution to:
Public Employees' Retirement System
$
9,471.00
$
9,471.00
$
9,471.00
Social Security System (0.A.S.I.)
12,200.00
12,400.00
12,056.98
$
343.02
Unemployment Compensation Insurance
(N.J.S.A. 43:21-3 et. seq.)
700.00
700.00
688.08
11.92
Total Deferred Charges and Statutory Expenditures
$
22,371.00
$
22,571.00
$
22,216.06
$
354.94
Total Water-Sewer Utility Appropriations
$
897,952.33
$
897,952.33
$
764,355.65
$
53,339.73
$
44,934.44
$
35,322.51
BOROUGH OF ROOSEVELT
WATER-SEWER UTILITY OPERATING FUND
STATEMENT OF CONSUMER ACCOUNTS RECEIVABLE
BALANCE. DECEMBER 3l 2016
$
INCREASED BY
Water-Sewer Rents Levied
DECREASED BY
Collections
$
711,242.76
Prepaid Rents Applied
2,577.44
BALANCE, DECEMBER 31, 2017
$
- 98 -
Exhibit E-4
83,312.52
736,024.16
819,336.68
713,820.20
105,516.48
<.o
<.o
Operating:
Salaries and Wages
Other Expenses
BOROUGH OF ROOSEVELT
WATER-SEWER UTILITY OPERATING FUND
STATEMENT OF 2016 APPROPRIATION RESERVES
Balance
December 31, 2016
Balance
Appropriation
Reserve for
After
Reserves
Encumbrance
Transfers
$
12,370.02
$
12,370.02
52,072.18
$
42,265.89
94,338.07
Deferred Charges and Statutory Expenditures:
Statutory Expenditures:
Contribution:
Public Employees' Retirement System
26.00
26.00
Social Security System (O.A.S.I.)
2,233.86
2,233.86
Unemployment Compensation Insurance
(N.J.S.A. 43:21-3 et. seq.)
210.01
210.01
$
66,912.07
$
42,265.89
$
109,177.96
Exhibit E-5
Paid or
Balance
Charged
Lapsed
$
5,601.64
$
6,768.38
86,414.73
7,923.34
26.00
438.53
1,795.33
98.87
111.14
$
92,553.77
$
16,624.19
BOROUGH OF ROOSEVELT
WATER-SEWER UTILITY OPERATING FUND
SCHEDULE OF ACCRUED INTEREST ON BONDS AND LOANS
BALANCE. DECEMBER 31. 2016
INCREASED BY:
Budget Appropriations:
Interest on Bonds
Interest on NJEIT Loan
Interest on USDA Loan
DECREASED BY:
Cash Disbursed
BALANCE. DECEMBER 31, 2017
ANALYSIS OF ACCRUED INTEREST- DECEMBER 31. 2017
Outstanding
December 31,
Interest
2017
Rate
From
Loan - NJEIT
$
290,000.00
various
08/01/17
Loan- USDA
70,485.93
5.00%
10/01/17
Bonds
1,830,000.00
various
12/01/17
- 100 -
$
75,399.97
9,277.84
3,821.14
To
12/31/17
12/31/17
12/31/17
Period
5 months
3 months
1 month
Exhibit E-6
$
12,463.20
88,498.95
100,962.15
89,410.56
$
11,551.59
Amount
$
4,505.21
1,129.71
5,916.67
$
11,551.59
WATER-SEWER UTILITY CAPITAL FUND
BOROUGH OF ROOSEVELT
Exhibit F
Sheet 1 of 2
WATER-SEWER UTILITY CAPITAL FUND
COMPARATIVE STATEMENT OF ASSETS, LIABILITIES, RESERVES
AND FUND BALANCE-REGULATORY BASIS
AS OF DECEMBER 31, 2017 AND 2016
ASSETS
Cash and Cash Equivalents
Fixed Capital
Fixed Capital Authorized and Uncompleted
NJEIT Loans Receivable
Total Assets
LIABILITIES, RESERVES AND
FUND BALANCE
Bond Anticipation Notes
Loans Payable:
Farmer's Home Administration Loan
NJEIT Loan
MCIA Loan
Other Liabilities and Reserves:
Reserve for Encumbrances
Capital Improvement Fund
- 101 -
$
$
$
$
Balance
December 31,
2017
2,179.12
5,234,793.06
2,203, 7 40.25
258,075.00
7,696,608.31
7,698,787.43
376,150.00
70,485.93
1,090,470.47
1,830,000.00
2,990,956.40
4,995.00
7,550.00
12,545.00
Balance
December 31,
2016
$
2,177.94
5,234,793.06
2,203,740.25
258,075.00
7,696,608.31
$
7,698,786.25
$
84,361.51
1, 151,805.43
1,940,000.00
3, 176, 166.94
7,550.00
7,550.00
BOROUGH OF ROOSEVELT
Exhibit F
Sheet 2 of 2
WATER-SEWER UTILITY CAPITAL FUND
COMPARATIVE STATEMENT OF ASSETS, LIABILITIES, RESERVES
AND FUND BALANCE - REGULATORY BASIS
AS OF DECEMBER 31, 2017 AND 2016
Balance
Balance
December 31,
December 31,
2017
2016
LIABILITIES, RESERVES AND
FUND BALANCE (CONTINUED)
lnterfunds Payable:
Due to Water-Sewer Utility Operating Fund
$
257,977.73
$
411, 198.30
Due to Current Fund
161,746.25
Due to General Capital Fund
15,983.04
9,345.00
$
273,960.77
$
582,289.55
Improvement Authorizations:
Funded
$
3,640.25
$
3,640.25
Unfunded
789,597.14
862,412.18
793,237.39
866,052.43
Reserve for Amortization
3,232,064.91
3,046,854.37
Deferred Reserve for Amortization
18,950.00
18,950.00
3,251,014.91
3,065,804.37
Fund Balance
922.96
922.96
Total Liabilities, Reserves and Fund Balance
$
7,698,787.43
$
7,698,786.25
There were Bonds and Notes Authorized but not Issued at December 31, 2017 of $820,412.00
- 102 -
BOROUGH OF ROOSEVELT
WATER-SEWER UTILITY CAPITAL FUND
STATEMENT OF FIXED CAPITAL
BALANCE, DECEMBER 31, 2016
AND
BALANCE, DECEMBER 31, 2017
Detail:
Improvements to the Water-Sewer Treatment Plant
Capital Outlay - 1990
Capital Outlay - 1989 - Appropriation Reserves
Capital Outlay - 1991
Capital Outlay - 1990 - Appropriation Reserves
Capital Outlay - 1992
Capital Outlay - 1991 - Appropriation Reserves
Installation of Fire Suppression System in Chemical Building
Sludge Removal - Imhoff
Expansion of Water-Sewer Treatment Plant and Rehabilitation
of Sanitary Sewers
Capital Outlay - 1992 - Appropriation Reserves
Capital Outlay - 1993 - Appropriation Reserves
Capital Outlay - 1994
Capital Outlay - 1994 - Appropriation Reserves
Capital Outlay - 1995
Capital Outlay - 1995 - Appropriation Reserves
Capital Outlay - 1996
Capital Outlay - 1996 Appropriation Reserves
Capital Outlay - 1997
Improvements to the Water System - 1980
Other Adjustments
Capital Outlay - 1998
Capital Outlay - 1999
Capital Outlay - 2000
Capital Outlay - 2001
Rehabilitation to Well #3
Capital Outlay - 2003
Installation of Water Meters
Water-Sewer Improvements - Ord. 195
Water-Sewer Improvements - Ord. 219
Water-Sewer Improvements - Ord. 225
Maple Ct/North Rochdale Improvements
Upgrades to Water Treatment Plant and Rehabilitation of Water Storage Tank
- 104 -
Exhibit F-2
$ 5,234,793.06
$
775,000.00
52,466.86
41,394.85
21,252.65
10,791.33
102,443.93
93,051.58
55,000.00
45,000.00
2,000,000.00
84,479.07
46,901.43
26,827.67
2,840.95
34,463.77
5,536.23
37,397.00
720.00
35,641.90
515,164.32
32,616.38
31,497.00
32,655.39
12,714.00
4,545.00
50,000.00
14,032.00
125,000.00
100,000.00
85,000.00
154,000.00
41,359.75
565,000.00
$ 5,234, 793.06
Ordinance
Number
221
247/256
_.,
0
257/261
01
2016-03
2016-18
BOROUGH OF ROOSEVELT
WATER-SEWER UTILITY CAPITAL FUND
STATEMENT OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
Balance
Transferred
Date
December 31,
to Fixed
Description
Authorized
2016
Capital
Maple Ct. I N. Rochdale Improvements
07/10/06
$
3,640.25
Acquisition and Installation of an Automatic
Bar Screen and Inlet Weir Replacement
07/13/09
210,000.00
Upgrades Water Treatment Plant and
05/23/11
Rehab. Water Storage Tank
03/27/13
1,620,000.00
Rehabilitation of Elevated Water T ewer
02/22/16
210,000.00
Various Water Sewer Improvements
09/12/16
128,100.00
$ 2,203,740.25
Exhibit F-3
Balance
December 31,
2017
$
3,640.25
210,000.00
1,620,000.00
210,000.00
128,100.00
$ 2,203,740.25
Exhibit F-4
BOROUGH OF ROOSEVELT
WATER-SEWER UTILITY CAPITAL FUND
STATEMENT OF LOANS PAYABLE· MONMOUTH COUNTY IMPROVEMENT AUTHORITY
Date of
Amount of
Balance
Balance
Original
Original
Interest
December 31,
December 31,
Purpose
Issue
Issue
Date
Amount
Rate
2016
Decreased
2017
Monmouth County Improvement Authority
12/29/2011
$
1, 125,000.00
12/1/2018 $
75,000.00
5.00%
$ 1,500,000.00
$
75,000.00
$ 1,425,000.00
Pooled Loan Revenue (Refunding) Bonds
12/1/2019
80,000.00
5.00%
Serial Bonds
12/1/2020
85,000.00
5.00%
12/1/2021
90,000.00
5.00%
12/1/2022
95,000.00
4.00%
12/1/2023
95,000.00
4.00%
12/1/2024
100,000.00
3.00%
12/1/2025
105,000.00
3.00%
12/1/2026
105,000.00
3.00%
.....
Term Bonds
12/29/2011
700,000.00
12/1/2027
110,000.00
3.00%
0
O>
12/1/2028
115,000.00
3.00%
12/1/2029
115,000.00
5.00%
12/1/2030
125,000.00
5.00%
12/1/2031
130,000.00
5.00%
Monmouth County Improvement Authority
12/4/2012
570,000.00
12/1/2018
35,000.00
3.00%
440,000.00
35,000.00
405,000.00
12/1/2019
35,000.00
3.00%
12/1/2020
35,000.00
4.00%
12/1/2021
40,000.00
4.00%
12/1/2022
40,000.00
4.00%
12/1/2023
40,000.00
4.00%
12/1/2024
45,000.00
2.00%
12/1/2025
45,000.00
3.00%
12/1/2026
45,000.00
2.00%
12/1/2027
45,000.00
2.00%
$ 1,940,000.00
$ 110,000.00
$ 1,830,000.00
Exhibit F-5
Sheet 1of3
BOROUGH OF ROOSEVELT
WATER-SEWER UTILITY CAPITAL FUND
STATEMENT OF LOANS PAYABLE
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
Maturities of
Amount of
Loan Outstanding
Balance
Balance
Date
Original
December 31, 2017
Interest
December 31,
Decreased
December 31,
Purpose
Of Issue
Issue
Date
Amount
Rate
2016
fu'.
2017
NJEIT - STATE
2010 Winter Program:
03/01/10
$ 135,000.00
08/01/18
$
5,000.00
5.000 %
$
105,000.00
$
5,000.00
$
100,000.00
Water-Sewer System Improvements -
08/01/19
5,000.00
4.000
State Portion Ord #10-237
08/01/20
5,000.00
5.000
08/01/21
5,000.00
3.000
08/01/22
10,000.00
4.000
08/01/23
10,000.00
4.000
08/01/24
10,000.00
4.000
08/01/25
10,000.00
4.000
08/01/26
10,000.00
3.500
......
08/01/27
10,000.00
4.000
0
08/01/28
10,000.00
4.000
--.J
08/01/29
10,000.00
4.000
2016 A-1 Series:
05/26/16
$ 195,000.00
08/01/18
5,000.00
5.000 %
$
195,000.00
$
5,000.00
$
190,000.00
Water-Sewer System Improvements -
08/01/19
10,000.00
5.000
State Portion Ord #257/261
08/01/20
10,000.00
5.000
08/01/21
10,000.00
5.000
08/01/22
10,000.00
5.000
08/01123
10,000.00
5.000
08/01/24
10,000.00
4.000
08/01/25
10,000.00
4.000
08/01/26
10,000.00
4.000
08/01/27
10,000.00
4.000
08/01/28
10,000.00
2.000
08/01/29
10,000.00
2.000
08/01/30
10,000.00
2.000
08/01/31
10,000.00
2.125
08/01/32
10,000.00
3.000
08/01/33
15,000.00
3.000
08/01/34
15,000.00
3.000
08/01/35
15,000.00
3.000
Total NJEIT - State
$
300,000.00
$
10,000.00
$
290,000.00
Exhibit F-5
Sheet 2 of 3
BOROUGH OF ROOSEVELT
WATER-SEWER UTILITY CAPITAL FUND
STATEMENT OF LOANS PAYABLE
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
Maturities of
Amount of
Loan Outstanding
Balance
Balance
Date
Original
December 31, 2017
Interest
December 31,
Decreased
December 31,
Purpose
Of Issue
Issue
Date
Amount
Rate
2016
fty
2017
NJEIT - FEDERAL
Water-Sewer System Improvements -
03/01/10
$ 405,000.00
02/01/18
$
6,864.40
0.00 %
$
267,711.93
$
20,593.21
$
247,118.72
Federal Portion Ord #10-237
08/01/18
13,728.81
02/01/19
6,864.40
08/01/19
13,728.81
02/01/20
6,864.40
08/01/20
13,728.81
02/01/21
6,864.40
08/01/21
13,728.81
02/01/22
6,864.40
->.
08/01/22
13,728.81
0
02/01/23
6,864.40
OJ
08/01/23
13,728.81
02/01/24
6,864.40
08/01/24
13,728.81
02/01/25
6,864.40
08/01/25
13,728.81
02/01/26
6,864.40
08/01/26
13,728.81
02/01/27
6,864.40
08/01/27
13,728.81
02/01/28
6,864.40
08/01/28
13,728.81
02/01/29
6,864.40
08/01/29
13,729.01
Water-Sewer System Improvements -
05/26/16
$ 604,588.00
02/01/18
10,247.25
0.00 %
$
584,093.50
$
30,741.75
$
553,351.75
Federal Portion Ord #257/261
08/01/18
20,494.50
02/01/19
10,247.25
08/01/19
20,494.50
02/01/20
10,247.25
08/01/20
20,494.50
02/01/21
10,247.25
08/01/21
20,494.50
02/01/22
10,247.25
08/01/22
20,494.50
.....
0 co
Purpose
NJEIT - FEDERAL (CONTINUED)
Water-Sewer System Improvements -
Federal Portion Ord #257/261
Total NJEIT - Federal
Date
Of Issue
BOROUGH OF ROOSEVELT
WATER-SEWER UTILITY CAPITAL FUND
STATEMENT OF LOANS PAYABLE
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST
Maturities of
Amount of
Loan Outstanding
Original
December 31, 2017
Interest
Issue
Date
Amount
Rate
02/01/23
$
10,247.25
08/01/23
20,494.50
02/01/24
10,247.25
08/01/24
20,494.50
02/01/25
10,247.25
08/01/25
20,494.50
02/01/26
10,247.25
08/01/26
20,494.50
02/01/27
10,247.25
08/01/27
20,494.50
02/01/28
10,247.25
08/01/28
20,494.50
02/01/29
10,247.25
08/01/29
20,494.50
02/01/30
10,247.25
08/01/30
20,494.50
02/01/31
10,247.25
08/01/31
20,494.50
02/01/32
10,247.25
08/01/32
20,494.50
02/01/33
10,247.25
08/01/33
20,494.50
02/01/34
10,247.25
08/01/34
20,494.50
02/01/35
10,247.25
08/01/35
20,494.75
Exhibit F-5
Sheet 3 of 3
Balance
Balance
December31,
Decreased
December 31,
2016
fu'.
2017
$
851,805.43
$
51,334.96
$
800,470.47
$ 1,151,805.43
$
61,334.96
$ 1,090,470.47
...>.
...>.
0
1982
Farmer's Home
Administration Loan
Interest
Rate
5.00%
BOROUGH OF ROOSEVELT
WATER-SEWER UTILITY CAPITAL FUND
STATEMENT OF FARMER'S HOME ADMINISTRATION LOANS
Annual
Balance
Due
Principal and
Final
December 31,
Date
Interest Due
Maturity
2016
3/31 and 9/30 $
18,000.00
2022
$
84,361.51
$
84,361.51
Exhibit F-6
Balance
December 31,
Decreased
2017
$
13,875.58
$
70,485.93
$
13,875.58
$
70,485.93
Exhibit F-7
BOROUGH OF ROOSEVELT
WATER-SEWER UTILITY CAPITAL FUND
STATEMENT OF BOND ANTICIPATION NOTES
Date of
Balance
Ordinance
Original
Date of
Date of
Interest
December 31,
Number
Description
Issue
Issue
Maturity
Rate
Increased
2017
247/256
Acquisition and Installation of an Automatic
12/29/17
12/29/17
12/28/18
1.700%
$
23,750.00
$
23,750.00
Bar Screen and Inlet Weir Replacement
265
Improvements to Lake Drive Pump Station
12/29/17
12/29/17
12/28/18
1.700%
30,400.00
30,400.00
2016-03
Rehabilitation of Elevated Water-Tower
12/29/17
12/29/17
12/28/18
1.700%
200,000.00
200,000.00
~
~
~
2016-18
Various Water Sewer Improvements
12/29/17
12/29/17
12/28/18
1.700%
122,000.00
122,000.00
$
376, 150.00
$
376, 150.00
Ordinance
Number
Title
221
Maple Court I N. Rochdale Improvements
247/256
Acquisition and Installation of an
Automatic Bar Screen and Inlet
Weir Replacement
.....
257/261
Various Water-Sewer Improvements
.....
I\.)
I
265
Improvements to Lake Drive
Pump Station
2016-03
Rehabilitation of Elevated Water Tower
2016-08
Various Water Sewer Improvements
Detail:
Reserve for Encumbrances
Due to Water-Sewer Utility Operating Fund
BOROUGH OF ROOSEVELT
WATER-SEWER UTILITY CAPITAL FUND
STATEMENT OF IMPROVEMENT AUTHORIZATIONS
Balance
December 31,
Ordinance
2016
Date
Amount
Funded
Unfunded
7/10/2006
$
45,000.00
$
3,640.25
5/23/2011
185,000.00
$
4,645.71
3/27/2013
25,000.00
3/27/2013
215,000.00
719,234.38
12/9/2013
1,405,000.00
6/23/2014
32,000.00
4,313.00
2/22/2016
210,000.00
33,284.25
9/12/2016
128,100.00
100,934.84
$
3,640.25
$
862,412.18
Exhibit F-8
Balance
December 31,
Paid or
2017
Charged
Funded
Unfunded
$
3,640.25
$
4,645.71
719,234.38
$
95.00
4,218.00
624.00
32,660.25
72,096.04
28,838.80
$
72,815.04
$
3,640.25 $
789,597.14
$
4,995.00
67,820.04
$
72,815.04
Ordinance
Number
247/256
257/261
->.
265
->.
w
2016-03
2016-18
BOROUGH OF ROOSEVELT
WATER-SEWER UTILITY CAPITAL FUND
STATEMENT OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Balance
December 31,
Description
2016
Acquisition and Installation of an Automatic Bar Screen
$
23,750.00
$
and Inlet Weir Replacement
Various Water-Sewer Improvements
820,412.00
Improvements to Lake Drive Pump Station
30,400.00
Rehabilitation of Elevated Water Tower
200,000.00
Various Water Sewer Improvements
122,000.00
1, 196,562.00
$
Exhibit F-9
Balance
Notes
December 31,
Issued
2017
23,750.00
$
820,412.00
30,400.00
200,000.00
122,000.00
376,150.00
$
820,412.00
CAPITAL ASSET
Capital Assets:
BOROUGH OF ROOSEVELT
CAPITAL ASSET ACCOUNT
COMPARATIVE STATEMENT OF CAPITAL ASSETS
AS OF DECEMBER 31, 2017 AND 2016
Balance
December 31,
2017
Land and Buildings
$
2,357,400.00
$
Machinery and Equipment
94,072.98
$
2,451,472.98
$
Exhibit G
Balance
December 31,
2016
2,357,400.00
94,072.98
2,451,472.98
Investment in Capital Assets
$
2,451,472.98
$
2,451,472.98
- 114 -
STATISTICAL SECTION
(UNAUDITED)
Exhibit H-1
BOROUGH OF ROOSEVELT
CURRENT FUND EXPENDITURES BY FUNCTION
FOR THE LAST TEN (10) FISCAL YEARS
!UNAUDITED!
Fiscal Year
Function
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
General Government
$
359,486.00
$
362,587.00
$
333,785.00
$
272,921.00
$
271,919.00
$
268,518.00
$
314,118.00
$
309,472.00
$
443,959.00
$ 353,002.00
Land Use
30,700.00
30,693.00
23,093.00
37,993.00
34,789.00
35,233.00
57,343.00
60,810.00
61,100.00
43,700.00
Insurance
58,500.00
41,500.00
40,500.00
46,500.00
50,300.00
48,800.00
50,100.00
47,400.00
43,900.00
39,400.00
Public Works
123,250.00
150,170.00
139,650.00
99,050.00
85,900.00
155,250.00
72,250.00
76,833.00
129,042.00
115,550.00
Health and Human Services
16,200.00
16,700.00
19,000.00
15,900.00
18,500.00
18,500.00
18,000.00
15,500.00
16,600.00
15,309.00
Parks and Recreation
29,200.00
28,442.00
26,392.00
26,792.00
19,792.00
19,792.00
19,792.00
19,000.00
19,600.00
17,200.00
Utilities
29,500.00
37,200.00
35,000.00
33,500.00
30,500.00
30,200.00
28,500.00
27,500.00
27,500.00
27,500.00
Other Common Functions
1,500.00
2,000.00
1,000.00
1,000.00
1,000.00
5,000.00
1,000.00
1,000.00
1,000.00
1,000.00
Public Safety
64,771.00
60,171.00
64,471.00
61,297.00
50,400.00
44,400.00
42,400.00
33,300.00
34,850.00
34,650.00
Sanitation
97,660.00
95,400.00
97,400.00
115,400.00
93,400.00
36,400.00
39,400.00
42,000.00
40,600.00
40,600.00
Uniform Construction Code
3,560.00
3,460.00
3,000.00
Deferred Charges and
Statu1ory Expendilures
93,377.24
60,724.50
144,842.71
115,131.29
123,460.00
26,768.00
32,240.00
30,167.00
143,830.00
lnterlocal Service Agreement
85,336.46
61,379.00
59,917.00
65,218.00
7,000.00
Grant Programs
4,537.65
17,000.00
4,250.00
11,300.00
4,301.45
11,441.68
4,732.52
4,050.27
4,534.52
4,542.20
Debt Service
13,750.00
14,000.00
14,200.00
14,400.29
14,370.00
9,640.00
7,700.00
4,200.00
8,830.00
2,601.00
_...
Capital Improvements
30,000.00
45,000.00
58,000.00
40,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
20,000.00
_...
01
Reserve for Uncollected Taxes
180,000.00
180 000.00
170,000.00
160 000.00
160,000.00
150,000.00
150,000.00
140,000.00
130,000.00
130,000.00
I
Total Current Fund Expendilures
$ .J_.n2.431.0s
$_J,166,199.46
$ _1,087.465.50
$ 1,080,896.00
$
970,302.74 -
$ 1,041,573.68
$
915,480.52
$
901,523.27
$ 1.011,682.52
$ 995,884.20
.....
.....
O>
Function
Local Sources:
Fund Balance Utilized
Current Tax Revenue
Delinquent Tax Revenue
Miscellaneous Revenues Anticipated
Non-Budget Revenues
Other Credits to Income
lnterlocal Service Agreement
State Aid
Grants
Total Current Fund Revenues
2017
2016
$
345,000.00 $
391,000.00
762,496.52
755,772.78
48,904.30
45,169.46
15,085.00
43,869.53
39,422.11
367,087.08
118,075.88
81,849.00
81,849.00
4,537.65
17,000.00
$ 1,653,744.08 $ 1,463,374.23
BOROUGH OF ROOSEVELT
CURRENT FUND REVENUES BY FUNCTION
FOR THE LAST TEN (10} FISCAL YEARS
(UNAUDITED)
Fiscal Year
2015
2014
2013
2012
$
322,500.00 $
259,873.15
$
199,618.00
$
174,742.00
749,830.74
710,478.82
702,009.25
701,598.58
53,207.77
81,118.39
81,567.97
80,862.46
10,136.50
62,326.85
4,872.29
1,100.00
47,323.11
53,112.87
87,036.73
113,304.91
249,128.22
192,127.65
189,630.13
204,173.73
81,849.00
81,849.00
81,848.88
81,849.00
4,250.00
11,300.00
4,301.45
11,441.68
$ 1,518,225.34 $ 1.452.186.73
$ 1,350,884.70
$ 1,369,072.36
Exhibit H-2
2011
2010
2009
2008
$
138,100.00
$
120,999.18
$
225,000.00
$
275,000.00
700,064.81
704,930.53
673,527.30
589,044.08
62,607.04
67,140.59
49,134.13
84,423.42
1,605.00
1,660.00
26,114.00
1,550.00
101,252.42
58,570.25
31,887.94
36,872.99
81,584.12
80,708.10
34,522.69
4,608.20
81,849.00
82,930.82
104,119.50
136,906.38
4,732.52
4,050.27
4,534.52
__ 4_,542.20
$ 1,171,794.91
$ 1.120.989.74
$ 1, 148,840.08
$ 1,132,947.27
_...
_...
-...J
Function
Operating
Capital Improvements
Debt Service
Deferred Charges and Statutory Expenditures
2017
$ 601,349.33
273,709.49
22,571.00
$ 897 ,629.82
BOROUGH OF ROOSEVELT
WATER-SEWER UTILITY OPERATING FUND EXPENDITURES BY FUNCTION
FOR THE LAST TEN j10l FISCAL YEARS
jUNAUDITEDl
Fiscal Year
2016
2015
2014
2013
2012
$ 612,456.00
$ 562,635.00
$ 527,810.00
$ 494,959.94
$ 455,939.33
14,500.00
12,000.00
257,782.43
232,034.87
230,547.38
229,353.03
307,785.00
23,700.00
21,500.00
55 765.00
37,157.22
22,793.00
$ 908,438.43
$ 816, 169.87
$ 814,122.38
$ 773,470.19
$ 786,517.33
Exhibit H-3
2011
2010
2009
2008
$ 437,540.00
$ 433,937.00
$ 426,337.00
$ 404,100.69
248,653.00
238,953.05
215,280.63
208,514.00
22,707.00
20,429.00
19,049.00
_2Z,285.31
$ 708,900.00
$ 693,319.05
$ 660,666.63
$ 649,900.00
Assessment
Year
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
*
BOROUGH OF ROOSEVELT
PROPERTY TAX RA TES
PER $100 OF ASSESSED VALUATION
FOR THE LAST TEN (10) FISCAL YEARS
(UNAUDITED)
Local
School
Borough
District
County
$ 0.756
$ 1.850
$ 0.300
0.728
1.848
0.292
0.728
1.879
0.312
0.749
1.941
0.306
0.748
1.852
0.313
0.748
1.780
0.313
0.747
1.750
0.320
0.748
1.714
0.308
0.634
1.425
0.268
0.530
1.371
0.242
Source: Tax Collector.
* Revaluation Effective
- 118 -
Exhibit H-4
Total
$ 2.906
2.868
2.919
2.996
2.913
2.841
2.817
2.770
2.327
2.143
Year Ended
December 31.
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
BOROUGH OF ROOSEVELT
MUNICIPAL PROPERTY TAX LEVIES AND COLLECTIONS
FOR THE LAST TEN (10) FISCAL YEARS
(UNAUDITED)
Total
Current Tax
Tax Levy
Collections
$
2,488,921.44
$
2,422,377.95
2,444,490.38
2,401,459. 77
2,508,575.69
2,460, 128.19
2,457,517.51
2,392,927.73
2,453,383.85
2,364,694.04
2,399,625.97
2,318,058.00
2,372,099.72
2,292,739.51
2,338,055.07
2,269,420.62
2,234, 179.82
2,167,288.73
2,065,395.22
2,013,071.59
- 119 -
Exhibit H-5
Tax Levy
Collected
97.33%
98.24%
98.07%
97.37%
96.39%
96.60%
96.65%
97.06%
97.01%
97.47%
Year Ended
December 31.
2017
$
2016
2015
2014
2013
2012
2011
2010
2009
2008
BOROUGH OF ROOSEVELT
DELINQUENT TAXES AND TAX TITLE LIENS
FOR THE LAST TEN (10) FISCAL YEARS
(UNAUDITED)
Amount of
Amount of
Delinquent
Total
Tax Title Liens
Taxes
Delinquent
None
$ 66,543.29
$
66,543.29
9,094.47
39,809.83
48,904.30
5,873.74
43,107.26
48,981.00
None
55,520.54
55,520.54
None
80,868.39
80,868.39
None
81,567.97
81,567.97
6,499.81
74,362.85
80,862.66
None
63,374.22
63,374.22
None
66,891.09
66,891.09
None
49, 134.13
49, 134.13
- 120 -
Exhibit H-6
Percentage
of Tax Levy
2.67%
2.00%
1.95%
2.26%
3.30%
3.40%
3.41%
2.71%
2.99%
2.38%
Exhibit H-7
BOROUGH OF ROOSEVELT
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
FOR THE LAST TEN (10) FISCAL YEARS
(UNAUDITED)
Percentage of
Net Assessed
Net
Estimated
to Estimated
Year Ended
Assessed
Full Cash
Full Cash
December 31,
Valuations
Valuations
Valuations
2017
$
85,781,888
$
86,995,208
98.61%
2016
85,362,800
85,912,641
99.36%
2015
85,725,600
85,507,544
100.26%
2014
81,873,900
85,758,772
95.47%
2013
84,087,500
81,480, 136
103.20%
2012
84,280,100
84,797,364
99.39%
2011
84, 103,400
88,548,357
94.98%
2010
84,156,300
94,029,385
89.50%
2009
95,806,200
94, 149, 175
101.76%
2008
*
96,270,800
98,225,487
98.01%
Source: Table of Equalized Valuations, State of New Jersey, Division of Taxation.
* Revaluation Effective
- 121 -
BOROUGH OF ROOSEVELT
SCHEDULE OF TEN LARGEST TAXPAYERS
YEAR ENDED DECEMBER 31, 2017
(UNAUDITED)
Assessed
Taxpayer
Value - 2017
Gade, Sreenivasa and Kanigiri
$
1,747,300
Roosevelt Sr Ct H S C/O LSM of NJ
1,367,100
Sattel, Elsbeth G
1,072,300
Wojnicki, John
880,000
Ticktin, Joshua M
579,400
Dexheimer, W. Kim
560,700
Stinson, Arthur
524,800
Ticktin, Michael & Marilyn
508,800
Marko, Neil & Joy & E Marder
484,300
Petrillo, John
482,300
$
8,207,000
- 122 -
Exhibit H-8
As a Percent
of Net Assessed
Valuation Taxable
2.05%
1.60%
1.26%
1.03%
0.68%
0.66%
0.61%
0.60%
0.57%
0.57%
9.61%
BOROUGH OF ROOSEVELT
COMPUTATION OF LEGAL DEBT MARGIN
FOR THE YEAR ENDED DECEMBER 31, 2017
(UNAUDITED)
2017
2016
2015
Average Equalized Valuation of Taxable Property
Municipal Borrowing Margin - 3%% of $85, 138,404.33
Gross Debt
Deductions
Net Municipal Debt as of December 31, 2017
Municipal Borrowing Margin Available
$
4,805,768.40
3,881,397.00
MUNICIPAL OVERLAPPING DEBT TOTAL
Borough Net Debt
Overlapping Debt Apportioned to Borough:
County of Monmouth:
.072782% of $462,342,600.35 <2l
Exhibit H-9
Equalized
Valuation
Basis <1l
$
86,995,028.00
85,912,641.00
82,507,544.00
$
255,415,213.00
$
85, 138,404. 33
$
2,979,844.15
924,371.40
$ ==2=, 0=5=5==,4=72=·=75=
$
924,371.40
336,504.05
$ ==1=,2=6=0=,8=7=5.=45=
Source: (1) Equalized Valuation Basis were provided by the Annual Report of the State of
New Jersey, Department of the Treasury, Division of Taxation for 2017, 2016 and
2015.
(2) County of Monmouth Chief Financial Officer.
- 123 -
......
N
.:::...
BOROUGH OF ROOSEVELT
RATIO OF BONDED DEBT1 BOND ANTICIPATION NOTES AND LOANS TO
EQUALIZED VALUE AND NET DEBT PER CAPITA
FOR THE LAST TEN (10) FISCAL YEARS
(UNAUDITED)
Less
Net
Self-
Year Ended
Borough
Equalized
Debt
Liquidating
December 31.
Population (1)
Valuation (2)
Issued (3)
Debt
2017
882
$ 86,995,028.00
$ 4,374,768.40
$ 3,450,397.00
2016
882
85,912,641.00
2015
882
82,507 ,544.00
2014
882
85,758,772.00
2013
882
81,480,136.00
2012
882
84, 797 ,364.00
2011
882
88,548,537.00
2010
882
94,029,385.00
2009
937
94, 149, 175.00
2008
937
98,225,487.00
(1) U.S. Bureau of the Census, Population Division for 2010.
(2) Per the State of New Jersey.
(3) Includes Water-Sewer Utility Debt only.
4,609,978.94
4,317,609.34
4,506,779.28
4,214,529.28
4,715,229.41
4,352,979.41
4,787,679.34
4,325,393. 7 4
3,404,736.03
2,444, 106.03
3,841, 793.33
3,520,293.33
3,923,602.09
3,688, 102.09
3,763,075.67
3,478,403.87
2,963,887.25
2,726,387.25
$
Net
Debt
924,371.40
292,369.60
292,250.00
362,250.00
462,285.60
960,630.00
321,500.00
235,500.00
284,671.80
237,500.00
Exhibit H-10
Ratio of
Net
Debt to
Net
Assessed
Debt Per
Value
Capita
1.06%
$ 1,048.04
0.34%
331.48
0.35%
331.35
0.42%
410.71
0.56%
524.13
1.13%
1,089.15
0.36%
364.51
0.25%
267.01
0.30%
303.81
Exhibit H-11
BOROUGH OF ROOSEVELT
CALCULATION OF "SELF-LIQUIDATING PURPOSE" PER N.J.S. 40A:2-45
WATER-SEWER UTILITY OPERATING FUND
FOR THE YEAR ENDED DECEMBER 31, 2017
(UNAUDITED)
Cash Receipts from Fees, Rents or
Other Charges for Year
Deductions:
Operating and Maintenance Cost
$
588,920.33
Debt Service
273,709.49
Total Deductions
(Deficit) in Revenue
- 125 -
$
825,773.75
862,629.82
$
(36,856.07}
Year Ended
December 31,
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
BOROUGH OF ROOSEVELT
DEMOGRAPHIC STATISTICS
FOR THE LAST TEN (10) FISCAL YEARS
(UNAUDITED)
Unemployment
Per Capita
Rate
(1)
Income
(2)
4.3%
$
33,863.00
5.6%
33,863.00
5.4%
33,863.00
5.7%
33,863.00
7.6%
33,863.00
8.3%
33,863.00
8.0%
24,892.00
7.9%
24,892.00
7.8%
24,892.00
4.7%
24,892.00
Exhibit H-12
Borough
Population (3)
882
882
882
882
882
882
882
882
907
907
Source:
(1) New Jersey Department of Labor, Bureau of Labor Force Statistics.
(2) Based on Census of 2010 for year 2012-2017 and census of
2000 for Years 2008-2011.
(3) County of Monmouth
- 126 -
Date Established - 1937
Area
Employees:
Administrative
Public Works
Finance
Recreation
Water-Sewer
Volunteer Firemen
Volunteer First Aid
Source: Borough Records.
BOROUGH OF ROOSEVELT
MISCELLANEOUS STATISTICS
DECEMBER 31 I 2017
Full Time
1
1
2
- 127 -
6
9
Exhibit H-13
Incorporated - 1942
1.69 sq. miles
Part Time
1
1
2
1
2
7 *
AUDITOR'S COMMENTS AND RECOMMENDATIONS
GENERAL COMMENTS
DECEMBER 31 I 2017
Contracts and Agreements Required To Be Advertised For N.J.S. 40A:11-4
N.J.S. 40A: 11-4 states "Every contract or agreement, for the performance of any work or the
furnishing or hiring of any materials or supplies, the cost or the contract price whereof is to be
paid with or out of public funds not included within the terms of Section 3 of this act, shall be
made or awarded only after public advertising for bids and bidding 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 of $17,500.00
in the absence of a Qualified Purchasing Agent ("QPA"), except by contract or agreement."
The governing body of the Municipality has the responsibility of determining whether the
expenditures in any category will exceed $17,500.00 within the fiscal year. Where questions
arise as to whether any contract or agreement might result in violation of the statute, the
Borough Attorney's opinion should be sought before a commitment is made.
The minutes indicate that bids were requested by public advertising for the year as follows:
Sludge Removal
Recycling
Maintenance Agreement
Sodium Hypochlorite Solution
Sodium Aluminate
Sulfur Dioxide Gas
The minutes indicate that resolutions were adopted and advertised authorizing the awarding of
contracts or agreements for "Professional Services" per N.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.
Our examination of expenditures did not reveal any individual payments, contracts or
agreements in excess of $17,500.00 "for the performance of any work or the furnishing or hiring
of any materials or supplies" other than those where bids had been previously sought by public
advertisement or where a resolution had been previously adopted under the provision of N.J.S.
40A:11-6.
The Borough utilizes several vendors to perform various repair services on Borough owned
equipment. One vendor in total exceeded the amount in which services/products should be
bind in accordance with the Local Public Contracts Law ("Bid Threshold') of $17,500.00. The
expenditures were mostly from repairs and were the result of accumulation of several individual
purchases; none of which were in excess of the bid threshold. When the trend over several
years of expenditures in a particular category exceeds the bid threshold, then consideration
should be given to preparing for specifications for the purpose of bidding in accordance with the
Local Public Contracts Law.
- 128 -
GENERAL COMMENTS (CONTINUED)
DECEMBER 31 I 2017
Collection of Interest on Delinquent Taxes and Utility Charges
The governing body, on January 3, 2017, adopted the following resolution authorizing interest to
be charged on delinquent taxes, water-sewer charges and assessments:
WHEREAS, the Mayor and Council of the Borough of Roosevelt are empowered, pursuant
to N.J.S.A. 54:4-67, to fix the rate of interest to be charged for nonpayment of taxes and
other municipal charges; and
WHEREAS, the Mayor and Council of the Borough of Roosevelt find the assessment of
interest against delinquent municipal taxes and other charges will encourage prompt
payment of the same by property owners, resulting in more efficient collection of
revenues by the Borough of Roosevelt; and
WHEREAS, the Mayor and Council of the Borough of Roosevelt find that it is in the best
interest of the citizens of the Borough of Roosevelt to assess such interest.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Borough of
Roosevelt, in the County of Monmouth and State of New Jersey, that the Tax Collector is
hereby authorized to charge the maximum legal rate of interest allowed pursuant to
N.J.S.A. 54:4-67 for delinquencies as defined therein, as may be amended and
supplemented from time to time, which rates presently are as follows:
Eight percent (8%) interest on delinquencies up to one thousand five hundred
dollars ($1,500.00);
Eighteen percent (18%) interest on delinquencies equal to or greater than one
thousand five hundred dollars and one cent ($1,500.01 );
provided that no interest shall be charged on payment if any installment is made ten (10)
calendar days following the date upon when the installment becomes payable.
BE IT FURTHER RESOLVED that where any delinquency as defined in N.J.S.A. 54:4-
67, is in excess of ten thousand dollars ($10,000.00), the Borough of Roosevelt Tax
Collector is hereby authorized to impose the penalty thereon at a minimum legal rate of
interest allowed pursuant to N.J.S.A. 54:4, as may be amended and supplemented from
time to time, which penalty is presently six percent (6%).
- 129 -
GENERAL COMMENTS (CONTINUED)
DECEMBER 31, 2017
Collection of Interest on Delinquent Taxes and Utility Charges (Continued)
BE IT FURTHER RESOLVED that the Borough of Roosevelt Water-Sewer Collector is
hereby authorized to charge the maximum rate of interest allowed by law for the water-
sewer delinquencies, as may be amended and supplemented from time to time, which
rates are presently as follows:
0.0067% per month interest on delinquencies up to one thousand five hundred
dollars and one cent ($1,500.01 );
0.0150% per month on delinquencies equal to or greater than one thousand five
hundred dollars and one cent ($1,500.01 );
provided that no interest be charged if payment of any installments were made within ten
(10) calendar days following the date upon when payable.
It appears from an examination of the Tax Collector and the Water-Sewer Collector records that
interest was collected in accordance with the foregoing resolution.
Delinquent Taxes and Tax Title Liens
The detail of all unpaid taxes for 2017 is being properly carried in the Tax Collector's records.
An abstract taken from these records as at December 31, 2017 covering all unpaid charges on
that date was verified with the accounting control figures shown in this report.
There was no tax sale in 2017.
Water-Sewer Utility Receivables
The details of the Consumer Accounts Receivable Account as reflected on the Balance Sheet
(Exhibit E-1) have been proven to the detail on file in the Water-Sewer Utility Collector's office.
Cash Balances
The cash balances in all funds were verified by independent certifications obtained from the
depositories as at December 31, 2017. Supplemental bank reconciliations as of August 31,
2018 have also been prepared.
Cash counts were made on various dates in all departments of the Borough and bank balances
were independently reconciled from the books and records to such schedules of receipts and
disbursements provided for audit.
- 130 -
Revenues
GENERAL COMMENTS (CONTINUED)
DECEMBER 31, 2017
Receipts from licenses, fees, fines and costs, etc., for all departments, including the Municipal
Court, were checked to the records maintained to the extent deemed necessary.
Expenditures
The vouchers for all funds were examined to the extent deemed necessary to determine that
they carried the properly executed certifications as required by statute. Our examination of
expenditures revealed for the most part, compliance with procedures and requirements have
been adhered to.
Payroll
An examination was made of the employees' compensation records for the year 2017 to
determine that salaries were paid in conformity with the amounts of salaries and wages
authorized by ordinance. Overtime and part-time wages were checked and found to be properly
authorized.
Miscellaneous Comments
The confirmation sent to the Local Board of Education verified that the school taxes payable at
December 31, 2017 was correct.
Surety Bond Coverage
It appears as though the surety bond coverage for the Tax Collector, Water-Sewer Collector and
Chief Financial Officer, Treasurer and Municipal Court are adequate.
Municipal Court
The Borough of Roosevelt has an lnterlocal Services Agreement with the Township of Millstone
to provide Municipal Court administration services. The Township of Millstone Court personnel
handle all operations of the Borough of Roosevelt Municipal Court. A separate report has been
issued on the Borough of Roosevelt's portion of their operation.
Technical Directives - State of New Jersey
•
The general ledger for 2017 was maintained in accordance with acceptable accounting
control standards.
•
A complete encumbrance system for budgetary purposes was maintained during 2017.
•
A fixed assets detail was maintained in 2017.
- 131 -
GENERAL COMMENTS (CONTINUED)
DECEMBER 31 I 2017
lnteriund Receivable/Payable
There are interiunds that relate to the water-sewer utility capital fund that were caused by
expenditures paid on behalf of the fund by other funds which are pending receipt of the
permanent or temporary financing. The other interiund represents amounts due to the Grant
Fund which does not have a checking account. The interiunds are expected to be liquidated
once the financing is closed.
Other Matters
The contents of this audit report have been discussed at an exit conference, with the
appropriate Borough Officials, in accordance with the auditing standards general accepted in
the United States of America for governmental audits.
Appreciation
I desire to express my appreciation for the cooperation received from the Borough officials and
employees and the courtesies extended during the course of the audit.
Following up on Prior Year Recommendation
Recommendation:
Purchasing - that a written certification of availability funds accompany all authorizations for
services or acquisition of goods that are in excess of the Local Public Contract Law bid
threshold or due to the size of the community a lower amount as determined by the
Governing Body.
Condition:
During the year utility engineering services were incurred related to a study and analysis of
the condition of the water-sewer system.
The services were incurred without a written
"certification of availability of funds" from the Borough Chief Financial Officer as required.
The liability for this service was settled subsequent to yearend by a charge as applicable to
an ordinance (Improvement Authorization) and to the 2017 water-sewer operating budget.
It is suggested in the future a resolution accompanied by a written "certification of availability
of funds" for all authorizations for services performed or acquisition of good and services
greater than $17,500.00. A lower threshold should be considered by the Borough due to the
small size of the community.
Status:
Corrective Action Plan adopted in 2017 and all support staff and governing body members
are aware.
- 132 -
RECOMMENDATIONS
DECEMBER 31 I 2017
None.
The problems and weaknesses noted in my audit were not of such magnitude that they would
affect my ability to express an opinion on the financial statements taken as a whole.
Should any questions arise as to my comments, please do not hesitate to contact me.
Very truly yours,
1U2f~
Gerard Stankiewicz
Certified Public Accountant
Registered Municipal Accountant #431
For The Firm
SAMUEL KLEIN AND COMPANY
- 133 -
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George Lang
Chief Financial Officer
Kathleen Hart
Borough Clerk
Salvatore P. Cannizzaro
Tax Collector and Water-Sewer Utility Collector
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