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Executive Summary
This document is an audit report on the financial statements of the Borough of Stockton, New Jersey, for the year ended December 31, 2012. The audit was conducted by Suplee, Clooney & Company, Certified Public Accountants, and includes an independent auditor's report, financial statements for various funds (Current, Trust, General Capital, Water Utility, and Sewer Utility), supplementary schedules, and statistical data. The report expresses an adverse opinion on the financial statements in accordance with U.S. Generally Accepted Accounting Principles (GAAP) due to the Borough's use of a regulatory basis of accounting, but an opinion that regulatory basis financial statements present fairly regulatory basis balances sheets of the various individual funds as of December 31, 2012 and 2011, the regulatory basis statement of operations and changes in fund balance for the years then ended and the regulatory basis statement of revenues and expenditures and changes in fund balance for the year ended December 31, 2012 in accordance with the basis of financial reporting prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey.
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Document Text
--- Document: 2012 Audit Document ---
Report of Audit
on the
Financial Statements
of the
Borough of Stockton
in the
County of Hunterdon
New Jersey
for the
Year Ended
December 31, 2012
BOROUGH OF STOCKTON
INDEX
PART I
Independent Auditor's Report
1-3
EXHIBITS
Financial Statements - Statutory Basis
Current Fund:
Balance Sheets - Regulatory Basis
"A"
Statements of Operations and Change in Fund Balance - Regulatory Basis for the
Year Ended December 31,2012
"A-1"
Statement of Revenues - Regulatory Basis for the Year Ended December 31,2012
"A-2"
Statement of Expenditures - Regulatory Basis for the Year Ended December 31, 2012
"A-3"
Trust Fund:
Balance Sheets - Regulatory Basis
liB"
General Capital Fund:
Balance Sheets - Regulatory Basis
"G"
Statement of Fund Balance - Regulatory Basis
"C-1"
Water Utility Fund:
Balance Sheets - Regulatory Basis
"0"
Statements of Operations and Change in Fund Balance - Operating Fund - Regulatory
Basis for the Year Ended December 31, 2012
"0-1"
Statement of Revenues - Operating Fund - Regulatory Basis for the Year Ended
December 31,2012
"0-2"
Statement of Expenditures - Operating Fund - Regulatory Basis for the Year Ended
December 31,2012
"0-3"
Sewer Utility Fund:
Balance Sheets - Regulatory Basis
"E"
Statements of Operations and Change in Fund Balance - Regulatory Basis for the
Year Ended December 31,2012
"E-1"
Statement of Fund Balance - Capital Fund - Regulatory Basis
"E-2"
Statement of Revenues - Operating Fund - Regulatory Basis for the Year Ended
December 31,2012
"E-3"
Statement of Expenditures - Operating Fund - Regulatory Basis for the Year Ended
December 31,2012
"E-4"
PAGES
Notes to Financial Statements
4-20
BOROUGH OF STOCKTON
I N D E X (CONTINUED)
Supplementary Schedules - All Funds
Current Fund:
Schedule of Cash-Treasurer
Schedule of Cash-Collector
Schedule of Deferred Charges
Schedule of Taxes Receivable and Analysis of Property Tax Levy
Schedule of Due State of New Jersey Per Chapter 20, P.L. 1971
Schedule of Revenue Accounts Receivable
Schedule of Interfunds
Schedule of Reserve for Encumbrances - Grant Fund
Schedule of Reserve for Grants - Unappropriated - Grant Fund
Schedule of 2011 Appropriation Reserves
Schedule of County Taxes Payable
Schedule of Local District School Tax
Schedule of Regional High School Tax
Schedule of Prepaid Taxes
Schedule of Tax Overpayments
Schedule of Grants Receivable - Grant Fund
Schedule of Reserve for Grants Appropriated - Grant Fund
Schedule of Reserve for Miscellaneous Reserves
Schedule of Encumbrances Payable
Schedule of Due Current Fund - Grant Fund
Trust Fund:
Schedule of Cash-Treasurer
Schedule of Reserve for Animal Control Trust Fund Expenditures
Schedule of Due State of New Jersey - Animal Control Fund
Schedule of Various Reserves and Deposits
Schedule of Due Current Fund
General Capital Fund:
Schedule of Cash-Treasurer
Analysis of Cash
Schedule of Reserve for Miscellaneous Deposits
Schedule of Deferred Charges to Future Taxation-Unfunded
Schedule of Grants Receivable
Schedule of Improvement Authorizations
Schedule of Bond Anticipation Notes
Schedule of Capital Improvement Fund
Schedule of Interfunds
Schedule of Deferred Charges to Future Taxation Funded
Schedule of Green Trust Loans Payable
Schedule of New Jersey Environmental Infrastructure Trust Loans Payable
Schedule of New Jersey Environmental Infrastructure Trust Loans Receivable
Schedule of Contracts Payable
Schedule of Bonds and Notes Authorized But Not Issued
EXHIBITS
"A-4"
"A-5"
"A-6"
"A-7"
"A-8"
"A-9"
"A-10"
"A-11 "
"A-12"
"A-13"
"A-14"
"A-15"
"A-16"
"A-17"
"A-18"
"A-19"
"A-20"
"A-21"
"A-22"
"A-23"
"B-1"
"B-2"
"B-3"
"B-4"
"B-5"
"C-2"
"C-3"
"C-4"
"C-5"
"C-6"
"C-7"
"C-8"
"C-9"
"C-10"
"C-11"
"C-12"
"C-13"
"C-14"
"C-15"
"C-16"
BOROUGH OF STOCKTON
I N 0 E X (CONTINUED)
EXHIBITS
Water Utility Fund:
Schedule of Cash-Treasurer for the Year Ended December 31, 2012
Schedule of Encumbrances Payable- Operating Fund
Schedule of Consumer Accounts Receivable- Operating Fund
Schedule of Overpayments-Operating Fund
Schedule of Fixed Capital Authorized and Uncompleted- Capital Fund
Schedule of 2011 Appropriation Reserves-Operating Fund
Schedule of Improvement Authorizations-Capital Fund
Schedule of Reserve for Deferred Amortization-Capital Fund
Schedule of Capital Improvement Fund-Capital Fund
Schedule of Reserve for Amortization-Capital Fund
Schedule of Fixed Capital-Capital Fund
Schedule of Interfunds-Operating Fund
Schedule of Interfunds-Capital Fund
Schedule of Bond Anticipation Notes-Capital Fund
Schedule of Bonds and Notes Authorized But Not Issued-Capital Fund
Sewer Utility Fund:
Schedule of Cash-Treasurer for the Year Ended December 31, 2012
Schedule of Accrued Interest-Operating Fund
Schedule of Consumer Accounts Receivable-Operating Fund
Schedule of Interfunds-Operating Fund
Schedule of Encumbrances Payable- Operating Fund
Schedule of 2011 Appropriation Reserves- Operating Fund
Schedule of New Jersey Environmental Infrastructure Loan Receivable-Capital Fund
Schedule of Capital Improvement Fund-Capital Fund
Schedule of Fixed Capital Authorized and Uncompleted-Capital Fund
Schedule of Interfunds-Capital Fund
Schedule of Improvement Authorization-Capital Fund
Schedule of Fixed Capital-Capital Fund
Schedule of Reserve for Amortization-Capital Fund
Schedule of Reserve for Deferred Amortization-Capital Fund
Schedule of Reserve for Capital Improvements-Capital Fund
Schedule of Bonds Payable-Capital Fund
Schedule of New Jersey Environmental Infrastructure Trust Loan Payable-Capital Fund
Schedule of Bonds and Notes Authorized But Not Issued-Capital Fund
"0-4"
"0-5"
"0-6"
"0-7"
"0-8"
"0-9"
"0-10"
"0-11"
"0-12"
"0-13"
"0-14"
"0-15"
"0-16"
"0-17"
"0-18"
"E-5"
"E-6"
"E-7"
"E-8"
"E-9"
"E-10"
"E-11"
"E-12"
"E-13"
"E-14"
"E-15"
"E-16"
"E-17"
"E-18"
"E-19"
"E-20"
"E-21"
"E-22"
BOROUGH OF STOCKTON
I N DE X (CONTINUED)
PART II
Independent Auditor's Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
Schedule of Expenditures of State Financial Assistance - Year Ended
December 31,2012
Notes to the Schedule of Expenditures of State Financial Assistance -
Year Ended December 31,2012
PART III
Statistical Data
Officials in Office and Surety Bonds
General Comments and Recommendations
PAGES
21-22
23
24-25
26-31
32
33-36
BOROUGH OF STOCKTON
PART I
INDEPENDENT AUDITOR'S REPORT ON
AUDIT OF FINANCIAL STATEMENTS
AND SUPPLEMENTARY SCHEDULES AND DATA
FINANCIAL STATEMENTS - REGULATORY BASIS - ALL FUNDS
NOTES TO FINANCIAL STATEMENTS - REGULATORY BASIS
SUPPLEMENTARY SCHEDULES - ALL FUNDS
YEAR ENDED DECEMBER 31,2012 AND 2011
SUPLEE, CLOONEY & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
308 East Broad Street, Westfield, New Jersey 07090-2122
Telephone 908-789-9300
Fax 908-789-8535
E-mail info@scnco.com
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and Members
of the Borough Council
Borough of Stockton
County of Hunterdon
Stockton, New Jersey 08559
Report on the Financial Statements
We have audited the accompanying balance sheets - regulatory basis of the various
individual funds of the Borough of Stockton, as of December 31, 2012 and 2011, the related
statement of operations and changes in fund balance - regulatory basis for the years then
ended, and the related statement of revenues - regulatory basis and statement of expenditures -
regulatory basis of the various individual funds for the year ended December 31, 2012, and the
related notes to the financial statements, which collectively comprise the Borough's regulatory
financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with the regulatory basis of accounting prescribed by the Division of
Local Government Services, Department of Community Affairs, State of New Jersey.
Management is also responsible for the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are free from
material misstatements, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these regulatory financial statements
based on our audit. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America, the audit requirements prescribed by the Division of
Local Government Services, Department of Community Affairs, State of New Jersey (the
"Division"), and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.
1
SUPLEE, CLOONEY & COMPANY
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the regulatory 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 regulatory 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 regulatory financial statements, except for the omission of
Statement of General Fixed Assets, the regulatory financial statements are prepared by the
Borough of Stockton on the basis of the financial reporting provisions prescribed by the Division
of Local Government Services, Department of Community Affairs, State of New Jersey, which is
a basis of accounting other than accounting principles generally accepted in the United States
of America, to meet the requirements of New Jersey.
The effects on the financial statements of the variances between the regulatory basis of
accounting described in Note 1 and accounting principles generally accepted in the United
States of America, although not reasonably determinable, are presumed to be material.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the "Basis for
Adverse Opinion on U.S Generally Accepted Accounting Principles" paragraph, the financial
statements referred to above do not present fairly, in accordance with accounting principles
generally accepted in the United States of America, the financial position of the various
individual funds and account group of the Borough of Stockton as of December 31, 2012 and
2011, or the results of its operations and changes in fund balance for the years then ended of
the revenues or expenditures for the year ended December 31, 2012.
Opinion on Regulatory Basis of Accounting
In our opinion, except for the effects of such adjustments, as described in the sixth
paragraph, if any, that might have been determined to be necessary had we been able to audit
the Statement of General Fixed Assets, the regulatory financial statements referred to above
present fairly, in all material respects, the regulatory basis balances sheets of the various
individual funds as of December 31, 2012 and 2011, the regulatory basis statement of
operations and changes in fund balance for the years then ended and the regulatory basis
statement of revenues and expenditures and changes in fund balance for the year ended
December 31, 2012 in accordance with the basis of financial reporting prescribed by the
Division of Local Government Services, Department of Community Affairs, State of New Jersey
as described in Note 1.
2
SUPLEE, CLOONEY & COMPANY
Other Matters
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements
that collectively comprise the Borough of Stockton's regulatory financial statements.
The
supplementary information and data and schedule of state financial assistance listed in the table
of contents as required by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey are presented for purposes of additional analysis and
are not a required part of the regulatory financial statements.
The supplemental information and schedules listed above and also listed in the table of
contents are the responsibility of management and were derived from and relates directly to the
underlying accounting and other records used to prepare the regulatory financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the
regulatory financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to
prepare the regulatory financial statements or to the regulatory financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the supplemental information and data listed in the
table of contents, schedules of expenditures of federal awards and state financial assistance are
fairly stated, in all material respects, in relation to the regulatory financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report
dated August 16, 2013 on our consideration of the Borough of Stockton'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 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 Stockton's internal control over
financial reporting and compliance.
REGISTERED MU
August 16, 2013
3
CURRENT FUND
"A"
SHEET #1
BOROUGH OF STOCKTON
CURRENT FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
REF.
31,2012
31,2011
ASSETS
Cash-Treasurer
A-4
$
413,287.48
$
382,177.42
Petty Cash
225.00
225.00
Due State of New Jersey-Chapter 20, PL 1971
A-8
2,779.76
2,529.76
$
416,292.24
$
384,932.18
Receivables and Other Assets With Full Reserves:
Delinquent Property Taxes Receivable
A-7
$
15,780.04
$
25,543.30
Revenue Accounts Receivable
A-9
231.56
Interfunds Receivable
A-10
6,215.17
10,929.57
A
$
22,226.77
$
36,472.87
Deferred Charges:
Special Emergency Authorization
A-6
$
$
30,000.00
Overexpenditure of Appropriations
A-6
615.93
Overexpenditure of Appropriation Reserves
A-6
2,365.82
$
$
32,981.75
$
438,519.01
$
454,386.80
Grant Fund:
Grants Receivable
A-19
$
$
3,000.00
Due Current Fund
A-23
8,667.28
45,330.82
$
8,667.28
$
48,330.82
$
447,186.29
$
502,717.62
The accompanying Notes to the Financial Statements are an integral part of this statement.
"A"
SHEET #2
BOROUGH OF STOCKTON
CURRENT FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
REF.
31.2012
31.2011
LIABILITIES. RESERVES AND FUND BALANCE
Liabilities:
Appropriation Reserves
A-3:A-13
$
4,922.26
$
51,322.68
Encumbrances Payable
A-22
15,814.50
2,019.46
Prepaid Taxes
A-17
1,432.27
2,235.89
Tax Overpayments
A-18
18,510.58
20,168.15
Interfunds Payable
A-10
37,816.58
66,593.08
County Taxes-Payable
A-14
504.33
Miscellaneous Reserves
A-21
2,929.20
$
79,000.52
$
145,268.46
Reserve for Receivables and Other Assets
A
22,226.77
36,472.87
Fund Balance
A-1
337,291.72
272,645.47
$
438,519.01
$
454,386.80
Grant Fund:
Encumbrances Payable
A-11
$
$
3,000.00
Reserve for Grants Appropriated
A-20
4,129.94
41,200.88
Reserve for Grants Unappropriated
A-12
4,537.34
4,129.94
$
8,667.28
$
48,330.82
$
447,186.29
$
502,717.62
The accompanying Notes to the Financial Statements are an integral part of this statement.
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENTS OF OPERATIONS
AND CHANGE IN FUND BALANCE - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2012
REF.
YEAR 2012
REVENUE AND OTHER INCOME
Fund Balance Utilized
A-1:A-2
$
124,084.67
Miscellaneous Revenue Anticipated
A-2
121,442.09
Receipts From Delinquent Taxes
A-2
25,537.85
Receipts From Current Taxes
A-2
1,930,080.20
Non-Budget Revenue
A-2
11,936.59
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
A-13
44,324.19
Tax Overpayments Canceled
A-18
2,347.74
County Tax Canceled
Local District School Tax Canceled
Regional High School Tax Canceled
Miscellaneous Reserves Canceled
A-21
2,929.20
Grants Canceled
A-20
41,200.88
Interfunds Returned
4,714.40
Total Income
$
2,308,597.81
EXPENDITURES
Budget Appropriations:
Operations Within "CAPS":
Operating
A-3
$
329,097.00
Deferred Charges and Statutory Expenditures
A-3
24,204.75
Operations Excluded From "CAPS":
Operating
A-3
22,631.94
Capital Improvements
A-3
23,459.00
Municipal Debt Service
A-3
46,781.19
Deferred Charges
A-3
30,000.00
County Taxes
A-14
327,090.57
County Share of Added Taxes
A-14
504.33
Local District School Tax
A-15
664,284.00
Regional High School Tax
A-16
628,494.89
Refund of Prior Year Revenue
A-4
23,319.22
Interfunds Advanced
Total Expenditures
$
2,119,866.89
Excess in Revenue
$
188,730.92
Adjustments to Income Before Fund Balance:
Expenditures Included Above Which are by Statute
Deferred Charges to the Budget of the Succeeding Year
Statutory Excess to Fund Balance
$
188,730.92
Fund Balance
Balance, January 1
A
272,645.47
$
461,376.39
Decreased by:
Utilization as Anticipated Revenue
A-1:A-2
124,084.67
Fund Balance, December 31
A
$
337,291.72
The accompanying Notes to the Financial Statements are an integral part of this statement.
YEAR 2011
$
83,444.00
138,544.21
129,940.58
1,828,388.06
13,361.33
38,476.14
20.00
3.00
5.19
$
2,232,182.51
$
385,204.48
21,715.02
21,427.51
34,500.00
47,228.15
322,523.76
648,821.00
568,919.61
2.26
4,146.46
$
2,054,488.25
$
177,694.26
30,615.93
$
208,310.19
147,779.28
$
356,089.47
83,444.00
$
272,645.47
"A_211
SHEET#1
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2012
ANTICIPATED
EXCESS
OR
REF.
BUDGET
REALIZED
(DEFICIT)
Fund Balance Anticipated
A-1
$
124,084.67
$
124,084.67
$
Miscellaneous Revenues:
Licenses:
Alcoholic Beverages
A-9
3,824.00
3,824.00
Fines:
Municipal Court
A-9
2,000.00
2,716.47
716.47
Interest and Costs on Taxes
A-9
13,500.00
6,646.53
(6,853.47)
Garden State Preservation Trust Fund
A-9
6,150.00
6,150.00
Consolidated Municipal Property Tax Relief Act
A-9
2,414.00
2,414.00
Energy Receipts Tax
A-9
43,157.00
43,157.00
Cell Tower Rental
A-9
27,000.00
26,400.00
(600.00)
Hotel and Motel Tax
A-9
21,000.00
26,004.15
5,004.15
Recycling Tonnage Grant
A-19
129.94
129.94
Clean Communities Program
A-19
4,000.00
4,000.00
A-1
123,174.94
121,442.09
(1,732.85)
Receipts From Delinquent Taxes
A-7
25,000.00
25,537.85
537.85
Amount to be Raised by Taxation for Support
of Municipal Budget:
Local Tax for Municipal Purposes
A-2:A-7
330,657.72
434,706.41
104,048.69
Budget Totals
$
602,917.33
$
705,771.02
$
102,853.69
Non-Budget Revenue
A-1:A-2
11,936.59
11,936.59
$
602,917.33
$
717,707.61
$
114,790.28
REF.
A-3
The accompanying Notes to the Financial Statements are an integral part of this statement.
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31,2012
Allocation of Current Tax Collections:
Collections Realized on a Cash Basis
Allocated to:
School and County Taxes
Balance for Support of Municipal Budget Appropriations
Add: Appropriation-HReserve for Uncollected Taxes"
Amount for Support of Municipal Budget Appropriations
Analysis of Non-Budget Revenues
Miscellaneous Revenue Not Anticipated:
Treasurer:
Borough Clerk
Interest on Investments
Cable TV Franchise Fee
Reimbursement of Costs
Excess Animal Control Fees
Miscellaneous
Administrative Fee - Senior Citizen and Veterans
Tax Collector
Refunds
REF.
A-1 :A-7
A-3
A-2
A-4
A-5
A-4
A-2
$
$
$
$
The accompanying Notes to the Financial Statements are an integral part of this statement.
HA_2H
SHEET#2
1,930,08020
1,620,373.79
309,706.41
125,000.00
434,706.41
5,896.74
282.53
5,269.79
6,140.35
193.60
38.40
135.00
17,956.41
20.00
17,976.41
6,039.82
11,936.59
OPERATIONS WITHIN "CAPS"
GENERAL GOVERNMENT
Governing Body:
Salaries and Wages
Other Expenses
Municipal Clerk (Admin and Executive):
Salaries and Wages
Other Expenses
Elections:
Other Expenses
Financial Administration:
Salaries and Wages
Other Expenses
Computer Support
Administration.
Salaries and Wages
Audit Services
Tax Assessment Administration:
Salaries and Wages
Other Expenses
Revenue Administration:
Salaries and Wages
Other Expenses
Legal Services.
Other Expenses
Engineering Services:
Other Expenses
MUnicipal Land Use Law (NJSA 40:550-1)
Planning Board:
Salaries and Wages
Other Expenses
Legal Fees
Planner Fees
Engineering Fees
Zoning Board:
Salaries and Wages
Insurance (NJSA 40A:4-45.3(00»:
Liability Insurance
Worker Compensation Insurance
Flood Insurance
Employee Bonds
PUBLIC SAFETY
Police'
Salaries and Wages
Other Expenses
Aid to Volunteer Fire Company
Municipal Prosecutor:
Salaries and Wages
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2012
APPROPRIATIONS
BUDGET AFTER
PAID OR
BUDGET
MODIFICATION
CHARGED
$
8,035.00 $
8,359.00 $
8,358.27
900.00
1,088.00
1,088.00
36,657.00
35,789.00
35,788.44
6,100.00
4,000.00
3,999.20
400.00
16,646.00
16,647.00
16,646.40
6,500.00
4,758.00
4,757.94
2,500.00
6,855.00
7,097.00
7,096.16
10,000.00
10,000.00
10,000.00
5,306.00
5,306.00
5,305.90
1,600.00
78.00
77.04
7,720.00
7,720.00
7,650.77
1,240.00
2,630.00
2,629.24
8,000.00
9,322.00
9,321.50
9,000.00
12,782.00
12,781.40
4,390.00
4,390.00
4,384.80
750.00
977.00
97650
2,000.00
2,000.00
1,085.00
200.00
1,34600
1,34600
1,000.00
875.00
1,174.00
1,173.46
14,460.00
14,460.00
13,914.00
14,137.00
14,420.00
14,420.00
3,935.00
2,854.00
2,854.00
1,100.00
1,100.00
999.00
4,661.00
4,661.00
4,569.00
75.00
75.00
17,000.00
17,000.00
17,000.00
1,143.00
1,143.00
857.50
The accompanying Notes to the Financial Statements are an integral part of this statement.
"A-3"
SHEET #1
RESERVED
CANCELED
$
0.73 $
0.56
0.80
0.60
0.06
0.84
0.10
0.96
69.23
0.76
0.50
0.60
5.20
0.50
915.00
0.54
546.00
10100
92.00
75.00
285.50
PUBLIC WORKS
Street and Road Maintenance:
Other Expenses
Snow Removal:
Other Expenses
Solid Waste Collection:
Other Expenses
Building and Grounds:
Other Expenses
Recycling:
Other Expenses
Environmental Commission:
Salaries and Wages
Other Expenses
HEAL TH AND HUMAN SERVICES
Board of Health:
Other Expenses
Animal Control Services:
Salaries and Wages
Other Expenses
PARKS AND RECREATION
Recreation:
Other Expenses
MUNICIPAL COURT
Municipal Court:
Salaries and Wages
Other Expenses
PubliC Defender (P L. 1997, c.256):
Other Expenses
STATE UNIFORM CONSTRUCTION CODE
(N.J.SA52270-120 ET.SEQ.)
Building Inspector:
Salaries and Wages
Other Expenses
UNCLASSIFIED
Electricity
Street Lighting
Telephone
Natural Gas
TOTAL OPERATIONS WITHIN "CAPS"
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2012
APPROPRIATIONS
BUDGET AFTER
PAID OR
BUDGET
MODIFICATION
CHARGED
$
11,000.00 $
14,306.00 $
14,305.88
14,700.00
7,025.00
7,025.00
67,000.00
60,073.00
60,072.02
8,250.00
11,162.00
11,161.77
12,500.00
12,500.00
11,900.18
311.00
311.00
360.00
360.00
280.00
1,700.00
1,700.00
1,200.00
586.00
782.00
78132
300.00
300.00
2,500.00
37.00
37.00
6,430.00
6,430.00
6,430.00
4,388.00
3,330.00
3,329.60
200.00
200.00
1,846.00
1,847.00
1,846.20
200.00
200.00
2,210.00
610.00
608.61
14,000.00
12,500.00
12,49343
3,100.00
3,282.00
3,281.59
3,500.00
966.00
923.88
$
348,26600 $
329,097.00 $
324,756.00
The accompanying Notes to the Financial Statements are an integral part of this statement.
RESERVED
$
0.12
0.98
0.23
599.82
311.00
80.00
500.00
0.68
300.00
040
200.00
0.80
200.00
1.39
6.57
041
42.12
$
4,341.00
$
$
"A-3"
SHEET #2
CANCELLED
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2012
APPROPRIATIONS
BUDGET AFTER
PAID OR
BUDGET
MODIFICATION
CHARGED
DEFERRED CHARGES AND STATUTORY EXPENDITURES-
MUNICIPAL WITHIN "CAPS"
Overexpenditure of Appropriations
$
615.93 $
615.93 $
615.93 $
Overexpenditure of Appropriations Reserves
2,365.82
2,365.82
2,365.82
Statutory Expenditures.
Contribution to
Public Employee's Retirement System
12,859.00
12,85900
12,859.00
Social Security System
7,756.00
7,864.00
7,863.93
Unemployment Insurance
500.00
500.00
11982
TOTAL DEFERRED CHARGES AND STATUTORY
EXPENDITURES-MUNICIPAL WITHIN "CAPS"
$
24,096.75 $
24,204.75 $
23,824.50 $
TOTAL GENERAL APPROPRIATIONS FOR MUNICIPAL
PURPOSES WITHIN "CAPS"
$
372,362.75 $
353,301.75 $
348,580.50 $
OPERATIONS EXCLUDED FROM "CAPS"
Length of Service Award Program
$
12,600.00 $
18,30200 $
18,301.35 $
Council on Affordable Housing
200.00
200.00
TOTAL OTHER OPERATIONS - EXCLUDED FROM "CAPS"
$
12,800.00 $
18,502.00 $
18,301.35 $
STATE AND FEDERAL PROGRAMS OFF-SET BY REVENUES
Clean Communities Program
$
4,00000 $
4,000.00 $
4,000.00 $
Recycling Tonnage Grant
129.94
129.94
129.94
TOTAL PUBLIC AND PRIVATE PROGRAMS
$
4,129.94 $
4,129.94 $
4,129.94 $
TOTAL OPERATIONS - EXCLUDED FROM "CAPS"
$
16,929.94 $
22,631.94 $
22,431.29 $
CAPITAL IMPROVEMENTS-EXCLUDED FROM "CAPS"
Capital Improvement Fund
$
100.00 $
100.00 $
100.00 $
Capital Improvement Fund - Lambertville Sewerage Authority
10,000.00
23,35900
23,358.64
TOTAL CAPITAL IMPROVEMENTS EXCLUDED FROM "CAPS"
$
10,100.00 $
23,459.00 $
23,458.64 $
MUNICIPAL DEBT SERVICE-EXCLUDED FROM "CAPS"
Interest on Notes
$
1,036.00 $
1,036.00 $
1,03312 $
Loan Repayments for Principal & Interest-Green Trust
12,436.64
12,436.64
12,436.64
Loan Repayments for Principal & Interest-NJ Environmental
35,052.00
35,052.00
33,311.43
TOTAL MUNICIPAL DEBT SERVICE-EXCLUDED FROM "CAPS"
$
48,52464 $
48,524.64 $
46,781.19 $
The accompanying Notes to the Financial Statements are an integral part of this statement
"A-3"
SHEET #3
RESERVED
CANCELLED
$
0.07
380.18
380.25 $
4,721.25 $
0.65 $
200.00
200.65 $
$
$
200.65 $
$
0.36
0.36 $
$
2.88
1,740.57
$
1,743.45
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2012
APPROPRIATIONS
BUDGET AFTER
PAID OR
BUDGET
MODIFICATION
CHARGED
DEFERRED CHARGES-MUNICIPAL EXCLUDED FROM "CAPS"
Emergency Authorization: Hurricane Irene
$
30,000.00 $
30,000.00 $
30,000.00 $
TOTAL GENERAL APPROPRIATIONS FOR MUNICIPAL
PURPOSES EXCLUDED FROM "CAPS"
$
105,554.58 $
124,615.58 $
122,671.12 $
SUB-TOTAL GENERAL APPROPRIATIONS
$
477,917.33 $
477,917.33 $
471,251.62 $
RESERVE FOR UNCOLLECTED TAXES
125,000.00
125,000.00
125,000.00
TOTAL GENERAL APPROPRIATIONS
$
602,917.33 $
602,917.33 $
596,251.62 $
REF.
A-2
A-1
Encumbrances Payable
A-22
$
15,814.50
Reserve for Uncollected Taxes
A-2
125,000.00
Special Emergency 40AA-53
A-6
30,000.00
Deferred Charges
A-6
2,981.75
Reserve for Grants Appropriated
A-20
4,12994
Cash Disbursements
A-4
418,32543
$
596,251.62
The accompanying Notes to the Financial Statements are an integral part of this statement.
"A-3"
SHEET #4
RESERVED
CANCELLED
$
201.01 $
1,74345
4,922.26 $
1,74345
4,922.26 $
1,74345
AA-1
TRUST FUND
BOROUGH OF STOCKTON
TRUST FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
REF.
31, 2012
31,2011
ASSETS
Animal Control Trust Fund:
$
1,827.68 $
1,72295
Other Funds:
Cash
B-1
27,351.79
27,931.08
$
29,179.47
$
29,654.03
LIABILITIES, RESERVES AND FUND BALANCES
Animal Control Trust Fund:
Due Current Fund
B-5
$
193.28
$
409.95
Due State of New Jersey
B-3
44.60
44.60
Reserve for Animal Control Fund Expenditures
B-2
1,589.80
1,268.40
1,827.68
1,722.95
Other Funds:
Due Current Fund
B-5
4,235.19
3,739.84
Reserve For:
Various Reserves and Deposits
B-4
23,116.60
24,191.24
27,351.79
27,931.08
$
29,179.47
$
29,654.03
The accompanying Notes to the Financial Statements are an integral part of this statement.
GENERAL CAPITAL FUND
"e"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
BALANCE SHEETS - STATUTORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
REF.
31,2012
31,2011
ASSETS
Cash
C-2
$
625,398.94
$
19,238.68
Deferred Charges to Future Taxation - Funded
C-11
599,455.60
632,549.18
Deferred Charges to Future Taxation - Unfunded
C-5
745,000.00
320,000.00
Interfunds Receivable
C-10
29,149.30
21,262.26
N.J. Environmental Trust Loans Receivable
C-14
104,798.06
159,614.50
Grants Receivable
C-6
13,536.67
280,690.77
$
2,117,338.57
$
1,433,355.39
LIABILITIES, RESERVES AND FUND BALANCE
Bond Anticipation Notes
C-8
$
320,000.00
$
40,000.00
Contracts Payable
C-15
11,569.00
11,958.40
Interfunds Payable
C-10
152,170.04
Green Acres Loan Payable
C-12
136,946.99
146,501.14
N.J. Environmental Trust Loans Payable
C-13
462,508.61
486,048.04
Improvement Authorizations:
Funded
C-7
228,080.38
Unfunded
C-7
559,407.09
280,449.41
Capital Improvement Fund
C-9
140,007.95
136,073.00
Reserve for:
Miscellaneous Reserves
C-4
202,461.88
103,783.52
Fund Balance
C-1
132,267.01
461.50
$
2,117,338.57
$
1,433,355.39
The accompanying Notes to the Financial Statements are an integral part of this statement.
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
STATEMENT OF FUND BALANCE - REGULATORY BASIS
Balance, December 31,2011
C
$
461,50
Increased by:
Improvement Authorizations Canceled
C-7
$
112,986,94
Cancellation of Various Reserves
C-4
18,818,57
131,805,51
Balance, December 31,2012
C
$
132,267,01
The accompanying Notes to the Financial Statements are an integral part of this statement
THIS PAGE INTENTIONALLY LEFT BLANK
WATER UTILITY FUND
1L
BOROUGH OF STOCKTON
WATER UTILITY FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
REF.
31,2012
31,2011
ASSETS
Operating Fund:
Cash - Treasurer
D-4
$
52,442.77 $
153,317.19
Interfunds Receivable
D-15
88,718.57
4,449.49
$
141,161.34 $
157,766.68
Receivables and Inventories with Full Reserves:
Consumer Accounts Receivable
D-6
$
3,627.02 $
5,271.39
D
$
3,627.02 $
5,271.39
Total Operating Fund
$
144,788.36 $
163,038.07
Capital Fund
Fixed Capital
D-14
$
402,376.93 $
321,915.00
Fixed Capital Authorized and Uncompleted
D-8
230,000.00
138,200.00
Interfunds Receivable
D-16
152,170.04
47,225.37
Total Capital Fund
$
784,546.97 $
507,340.37
$
929,335.33 $
670,378.44
LIABILITIES, RESERVES AND FUND BALANCE
Operating Fund:
Liabilities
Appropriation Reserves
D-3:D-9
$
24,726.70 $
20,751.58
Encumbrances Payable
D-5
765.43
256.56
Overpayments
D-7
353.84
Interfunds Payable
D-15
2,116.14
48,152.64
$
27,608.27 $
69,514.62
Reserve for Receivables and Inventory
D
3,627.02
5,271.39
Fund Balance
D-1
113,553.07
88,252.06
Total Operating Fund
$
144,788.36 $
163,038.07
Capital Fund
Improvement Authorizations:
Funded
D-10
$
23,997.30 $
26,735.37
Unfunded
D-10
28,971.10
17,745.00
Capital Improvement Fund
D-12
15,483.07
12,745.00
Bond Anticipation Notes
D-17
175,000.00
Interfunds Payable
D-16
88,718.57
Reserve for:
Amortization
D-13
402,376.93
321,915.00
Deferred Amortization
D-11
35,000.00
118,200.00
Capital Outlay
D-4
15,000.00
10,000.00
Total Capital Fund
$
784,546.97 $
507,340.37
$
929,335.33 $
670,378.44
The accompanying Notes to the Financial Statements are an integral part of this statement.
"D-1"
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
STATEMENTS OF OPERATIONS
AND CHANGE IN FUND BALANCE - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 , 2012
YEAR ENDED
YEAR ENDED
DECEMBER
DECEMBER
REF.
31,2012
3t 2011
REVENUE AND OTHER INCOME REALIZED
Rents
D-2
$
83,281.41 $
109,791.39
Other Credits to Income:
Miscellaneous Revenue Not Anticipated
D-2
800.87
1,35719
Overpayments Canceled
D-7
353.84
Unexpended Balance of Appropriation Reserves
D-9
19,864.89
21,589.70
TOTAL INCOME
$
104,301.01 $
132,738.28
EXPENDITURES
Operating
D-3
$
72,300.00 $
72,300.00
Statutory Expenditures and Deferred Charges
D-3
1,700.00
1,700.00
Capital Improvements
D-3
5,000.00
5,000.00
TOTAL EXPENDITURES
$
79,000.00 $
79,000.00
Excess in Revenue
$
25,301.01 $
53,738.28
Fund Balance
Balance, January 1
D
88,252.06
34,513.78
Balance, December 31
D
$
113,553.07 $
88,252.06
The accompanying Notes to the Financial Statements are an integral part of this statement.
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2012
REF.
ANTICIPATED
Water Use Charges
0-1 :0-6
$
79,000.00 $
Miscellaneous Revenue Not Anticipated
0-1 :0-2
0-3
$
79,000.00 $
ANALYSIS OF REALIZED REVENUE
Water Use Charges:
Consumer Accounts Receivable:
Collected
0-6
$
0-3
$
Miscellaneous-Collector
$
Interest on Delinquent Accounts
0-2:0-4
$
REALIZED
83,281.41
$
800.87
84,082.28 $
83,281.41
83,281.41
188.61
612.26
800.87
The accompanying Notes to the Financial Statements are an integral part of this statement.
EXCESS
OR
(DEFICIT)
4,281.41
800.87
5,082.28
Operating:
Salaries and Wages
Other Expenses
Capital Improvements:
Capital Outlay
Total Operating
Total Capital Improvements
Statutory Expenditures:
Contributions to:
Social Security System (O.A.S.!,)
Total Statutory Expenditures
Cash Disbursements
Encumbrances Payable
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31,2012
"D-3"
APPROPRIATIONS
EXPENDED
BUDGET AFTER
PAID OR
BUDGET
MODIFICATION
CHARGED
RESERVED
$
23,460.00 $
23,460.00 $
15,560.04 $
7,899.96
48,840.00
48,840.00
32,522.76
16,317.24
$
72,300.00 $
72,300.00 $
48,082.80 $
24,217.20
$
5,000.00 $
5,000.00
5,000.00 $
$
5,000.00 $
5,000.00 $
5,000.00 $
$
1,700.00 $
1 1QO.50 $
1,700.00 $ __
---.:..!..:....:;...:
509.50
$
1,700.00 $
1 190.50 $
1,700.00 $ __ --'_
509.50
$
79,000.00 $
!'i4 ?73.30 $
79,000.00 $=====
24,726.70
REF.
D-2
D-1
D:D-1
D-4
$
53,507.87
D-5
765.43
$
54,273.30
The accompanying Notes to the Financial Statements are an integral part of this statement.
THIS PAGE INTENTIONALLY LEFT BLANK
SEWER UTILITY FUND
SHEET #1
BOROUGH OF STOCKTON
SEWER UTILITY FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
ASSETS
REF.
31,2012
31,2011
Operating Fund
Cash - Treasurer
E-5
$
281,142.17 $
198,766.42
Interfund Receivable
E-8
2,116.14
2,622.67
$
283,258.31 $
201,389.09
Receivables and Inventories with Full Reserves:
Consumer Accounts Receivable
E:E-7
$
13,489.99 $
28,314.04
Total Operating Fund
$
296,748.30 $
229,703.13
Capital Fund:
Fixed Capital
E-16
$
2,879,656.48 $
1,950,022.00
Fixed Capital Authorized and Uncompleted
E-13
20,000.00
1,060,000.00
N.J. Environmental Infrastructure Loan Receivable
E-11
34,061.39
174,876.00
Interfunds Receivable
E-14
47,103.94
Total Capital Fund
$
2,980,821.81 $
3,184,898.00
$
3,277,570.11 $
3,414,601.13
The accompanying Notes to the Financial Statements are an integral part of this statement.
SHEET #2
BOROUGH OF STOCKTON
SEWER UTILITY FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
LIABILITIES, RESERVES AND FUND BALANCE
REF.
31,2012
31, 2011
Operating Fund:
Liabilities
Budget Appropriations
E-4:E-10
$
67,428.83 $
9,121.07
Encumbrances Payable
E-9
26,204.60
Interfunds Payable
E-8
48,890.64
10,302.00
Accrued Interest
E-6
9,158.96
7,106.67
$
125,478.43 $
52,734.34
Reserve for Receivables
E
13,489.99
28,314.04
Fund Balance
E-1
157,779.88
148,654.75
Total Operating Fund
$
296,748.30 $
229,703.13
Capital Fund
Improvement Authorizations:
Funded
E-15
$
$
105,989.52
Unfunded
E-15
20,000.00
24,376.00
Serial Bonds Payable:
E-20
202,877.19
226,583.04
N.J. Environmental Infrastructure Loan Payable
E-21
356,644.07
513,918.76
Interfunds Payable
E-14
2,622.67
Reserve for:
Amortization
E-17
2,318,014.74
1,723,438.96
Deferred Amortization
E-18
521,705.24
Capital Improvements
E-19
3,000.00
3,000.00
Capital Improvement Fund
E-12
79,044.00
62,022.00
Fund Balance
E-2
1,241.81
1,241.81
Total Capital Fund
$
2,980,821.81 $
3,184,898.00
$
3,277,570.11 $
3,414,601.13
The accompanying Notes to the Financial Statements are an integral part of this statement.
BOROUGH OF STOCKTON
SEWER UTILITY FUND
STATEMENTS OF OPERATIONS
AND CHANGE IN FUND BALANCE - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2012
REF.
YEAR 2012
REVENUE AND OTHER INCOME REALIZED
Sewer Service Charges
E-3
$
297,249.27
Miscellaneous
E-3
5,450.54
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
E-10
9,052.47
TOTAL INCOME
$
311,752.28
EXPENDITURES
Operating
E-4
$
149,782.00
Statutory Expenditures and Deferred Charges
E-4
1,950.00
Capital Improvement
E-4
27,022.00
Debt Service
E-4
91,168.54
Refund of Prior Year Revenues
E-5
32,704.61
TOTAL EXPENDITURES
$
302,627.15
Excess in Revenue
$
9,125.13
Fund Balance
Balance, January 1
E-1
148,654.75
Balance, December 31
E
$
157,779.88
$
$
$
$
$
$
The accompanying Notes to the Financial Statements are an integral part of this statement.
YEAR 2011
300,198.36
20,631.21
539.40
321,368.97
150,504.00
1,950.00
27,022.00
98,215.65
7,891.09
285,582.74
35,786.23
112,868.52
148,654.75
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
STATEMENT OF FUND BALANCE - REGULATORY BASIS
Balance, December 31,2011
Balance, December 31,2012
E
E
$ ====1=,2=4=1.=81;::::
$ ===1=,2=4=1.=81=
The accompanying Notes to the Financial Statements are an integral part of this statement.
BOROUGH OF STOCKTON
SEWER UTILITY OPERATING FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31,2012
Sewer Charges
Miscellaneous
ANAL YSIS OF REALIZED REVENUE
Sewer Charges:
Collections
Miscellaneous:
Interest on Delinquent Accounts
Miscellaneous
Interest on Investments
REF.
E-1:E-3
$
E-1 :E-3
E-4
$
E-7
E-3
E-3:E-5
ANTICIPATED
REALIZED
260,915.00
$
297,249.27
9,100.00
5,450.54
270,015.00
$
302,699.81
$
297,249.27
$
297,249.27
$
4,494.59
923.13
32.82
$
5,450.54
EXCESS
OR
(DEFICIT)
$
36,334.27
(3,649.46)
$
32,684.81
The accompanying Notes to the Financial Statements are an integral part of this statement.
Operating:
Salaries and Wages
Other Expenses
Capital Improvements:
Total Operating
Capital Improvement Fund
Capital Outlay
Total Capital Improvements
Debt Service:
Payment of Bond Principal
Interest on Bonds
New Jersey Environmental Infrastructure Loan:
Payment of Bond Principal
Interest on Bonds
Total Debt Service
Deferred Charges and Statutory Expenditures:
Social Security System (OAS.I.)
Total Statutory Expenditures
Cash Disbursements
Accrued Interest
"E-4"
BOROUGH OF STOCKTON
SEWER UTILITY OPERATING FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31,2012
APPROPRIATIONS
EXPENDED
BUDGET AFTER
PAID OR
BUDGET
MODIFICATION
CHARGED
RESERVED
CANCELLED
$
25,111.00 $
25,111.00 $
17,225.68 $
7,885.32 $
125,393.00
124,67100
75,769.04
48,901.96
$
150,504.00 $
149,782.00 $
92,994.72 $
56,787.28 $
$
17,022.00 $
17,022.00 $
17,022.00 $
$
10,000.00
10,000.00
10,000.00
$
27,022.00 $
27,022.00 $
17,022.00 $
10,000.00 $
$
23,076.00 $
23,798.00 $
23,797.69 $
$
0.31
11,237.00
11,237.00
11,237.00
49,165.00
49,165.00
49,072.85
92.15
7,061.00
7,061.00
7,061.00
$
90,539.00 $
91,261.00 $
91,168.54 $
$
92.46
$
1,950.00 $
1,950.00 $
1,308.45 $
641.55 $
$
1 ,950.00 $
1,950.00 $
1,308.45 $
641.55 $
$
270,015.00 $
270,015.00 $
202,493.71 $
67,428.83 $
92.46
REF.
E-3
E-1
E:E-1
E-5
$
184,195.71
E-6
18,298.00
$
202,493.71
The accompanying Notes to the Financial Statements are an integral part of this statement.
THIS PAGE INTENTIONALLY LEFT BLANK
NOTES TO FINANCIAL STATEMENTS
NOTE 1:
BOROUGH OF STOCKTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31,2012 AND 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A.
Reporting Entity
The Borough of Stockton is an instrumentality of the State of New Jersey,
established to function as a municipality. The Borough Council consists of
elected officials and is responsible for the fiscal control of the Borough.
Except as noted below, the financial statements of the Borough of
Stockton include every board, body, officer or commission supported and
maintained wholly or in part by funds appropriated by the Borough of
Stockton, as required by N.J.S.A. 40A:5-5.
Accordingly, the financial
statements of the Borough of Stockton do not include the operations of the
local and regional school districts, inasmuch as their activities are
administered by separate boards.
B.
Description of Funds
The Governmental Accounting Standards Board (GAS B) is the accepted
standard-setting body for establishing governmental accounting and
financial
reporting
principles.
GASB codification establishes the
presentation of basic financial statements into three fund types, the
governmental, proprietary and fiduciary funds, as well as government-wide
financial reporting that must be used by general purpose governmental
units when reporting financial position and results of operations in
accordance with U.S. Generally Accepted Accounting Principles (GAAP).
The accounting policies of the Borough of Stockton conform to the
accounting principles applicable to municipalities which have been
prescribed by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey. Such principles and practices
are designed primarily for determining compliance with legal provisions
and budgetary restrictions and as a means of reporting on the stewardship
of public officials with respect to public funds.
Under this method of
accounting, the financial transactions and accounts of the Borough of
Stockton are organized on the basis of funds and an account group which
is different from the fund structure required by GAAP. A fund or account
group is an accounting entity with a separate set of self-balancing
accounts established to record the financial position and results of
operation of a specific government activity. As required by the Division of
Local Government Services, the Borough accounts for its financial
transactions through the following individual funds and account group:
4
NOTE 1:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B.
Description of Funds (Continued)
Current Fund - resources and expenditures for governmental operations of
a general nature, including federal and state grant funds
Trust Fund - receipts, custodianship and disbursement of funds in
accordance with the purpose for which each reserve was created
General Capital Fund - receipt and disbursement of funds for the
acquisition of general capital facilities, other than those acquired in the
Current Fund
Water Utility Operating and Capital Funds - account for the operations and
acquisition of capital facilities of the municipally owned Water Utility
Sewer Utility Operating and Capital Funds - account for the operations and
acquisition of capital facilities of the municipally owned Sewer Utility
General Fixed Assets Account Group - utilized to account for property,
land, buildings and equipment that have been acquired by other
governmental funds
C.
Basis of Accounting
The accounting principles and practices prescribed for municipalities by
the State of New Jersey differ in certain respects from generally accepted
accounting principles applicable to local government units.
The more
significant accounting policies and differences in the State of New Jersey
are as follows:
A modified accrual basis of accounting is followed with minor exceptions.
Revenues - are recorded when received in cash except for certain amounts
which are due from other governmental units. All grants are realized as
revenues when anticipated in the Borough's budget.
Receivables for
property taxes are recorded with offsetting reserves on the balance sheet of
the Borough's Current Fund; accordingly, such amounts are not recorded
as revenue until collected. Other amounts that are due the Borough, which
are susceptible to accrual, are also recorded as receivables with offsetting
reserves and recorded as revenues when received.
GAAP requires
revenues to be recognized in the accounting period when they become
susceptible to accrual, reduced by an allowance for doubtful accounts.
5
NOTE 1:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C.
Basis of Accounting (Continued)
Expenditures - are recorded on the "budgetary" basis of accounting.
Generally expenditures are recorded when an amount is encumbered for
goods or services through the issuance of a purchase order in
conjunction with the Encumbrance Accounting System.
Outstanding
encumbrances at December 31st are reported as a cash liability in the
financial statements and constitute part of the Borough's statutory
Appropriation Reserve balance.
Appropriation reserves covering unexpended appropriation balances are
automatically created at December 31 st of each year and recorded as
liabilities, except for amounts which may be canceled by the governing
body. Appropriation reserves are available, until lapsed at the close of
the succeeding year, to meet specific claims, commitments or contracts
incurred during the preceding fiscal year. Lapsed appropriation reserves
are recorded as income.
Appropriations for principal payments on
outstanding general capital and utility bonds and notes are provided on
the cash basis, interest on general capital indebtedness is on the cash
basis, whereas interest on utility indebtedness is on the accrual basis.
Encumbrances - Contractual orders at December 31 are reported as
expenditures through the establishment of encumbrances payable.
Under GAAP, encumbrances outstanding at year end are reported as
reservations of fund balance because they do not constitute expenditures
or liabilities.
Foreclosed Property - Foreclosed property is recorded in the Current
Fund at the assessed valuation when such property was acquired and is
fully reserved.
GAAP requires such property to be recorded in the
General Fixed Assets Account Group at its market value.
Sale of Municipal Assets - The proceeds from the sale of municipal
assets can be held in a reserve until anticipated as revenue in a future
budget. GAAP requires such proceeds to be recorded as revenue in the
year of sale.
Interfunds - Interfund receivables in the Current Fund are recorded with
offsetting reserves which are created by charges to operations. Income is
recognized in the year the receivables are liquidated.
Interfund
receivables in the other funds are not offset by reserves. GAAP does not
require the establishment of an offsetting reserve.
6
NOTE 1:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C.
Basis of Accounting (Continued)
General Fixed Assets - N.J.A.C. 5:30-5.6, Accounting for Governmental
Fixed Assets, as promulgated by the Division of Local Government
Services, which differs in certain respects from generally accepted
accounting principles, requires the inclusion of a statement of general
fixed assets of the Borough as part of its basic financial statements.
General fixed assets are defined as nonexpendable personal and real
property having a physical existence, a useful life of more than one year
and an acquisition cost of $300.00 or more per unit.
Public domain
("infrastructure") general fixed assets consisting of certain improvements
other than buildings, such as roads, bridges, curbs and gutters, streets
and sidewalks and drainage systems are not capitalized.
General Fixed Assets that have been acquired and are utilized in a
governmental fund operation are accounted for in the General Fixed
Asset Account Group rather than in a governmental fund.
No
depreciation has been provided on General Fixed Assets or reported in
the financial statements.
The Borough has developed a fixed assets accounting and reporting
system based on an inspection and valuation prepared by an
independent appraisal firm.
Adjustments for assets acquired/sold
subsequent to this date have been recorded. Fixed assets are valued at
historical cost or estimated historical cost if actual historical cost is not
available. Buildings and land are stated at the assessed value contained
in the Borough's most recent property revaluation.
Expenditures for construction in progress are recorded in the Capital
Funds until such time as the construction is completed and put into
operation.
Fixed assets acquired through grants in aid or contributed capital has not
been accounted for separately.
Inventories of Supplies - The cost of inventories of supplies for all funds
are recorded as expenditures at the time individual items are purchased.
The cost of inventories is not included on the various balance sheets.
GAAP requires the cost of inventories to be reported as a current asset
and equally offset by a fund balance reserve.
7
NOTE 1:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C.
Basis of Accounting (Continued)
Fixed Capital - Water Utility and Sewer Utility - Accounting for utility fund
"fixed capital" remains unchanged under the requirements of N.J.A.C.
5:30-5.6.
Property and equipment purchased by the Water Utility Fund and the
Sewer Utility Fund are recorded in the capital account at cost and are
adjusted for disposition and abandonment. The amounts shown do not
purport to represent reproduction costs or current value. The fixed capital
reported is as taken from the municipal records and does not necessarily
reflect the true condition of such fixed capital.
Contributions in aid of
construction are not capitalized.
The balance in the Reserve for
Amortization and Deferred Reserve for Amortization accounts in the utility
capital fund represents charges to operations for the cost of acquisition of
property, equipment and improvements.
The utility does not record
depreciation on fixed assets.
D.
Basic Financial Statements
The GASB codification also defines the financial statements of a
governmental unit to be presented in the general purpose financial
statements to be held in accordance with GAAP. The Borough presents
the financial statements listed in the table of contents of the
"Requirements of Audit and Accounting Revision of 1987" as prescribed
by the Division of Local Government Services, Department of Community
Affairs, State of New Jersey and which differ from the financial statements
required by GAAP.
8
NOTE 2:
Fund Type
Current Fund
Animal Control Fund
Other Trust Fund
General Capital Fund
CASH AND CASH EQUIVALENTS
The Borough considers petty cash, change funds, cash in banks and certificates
of deposit as cash and cash equivalents.
A.
Deposits
New Jersey statutes permit the deposit of public funds in institutions
which are located in New Jersey and which meet the requirements of the
Governmental Unit Deposit Protection Act (GUDPA) or the State of New
Jersey Cash Management Fund. GUDPA requires a bank that accepts
public funds to be a public depository. A public depository is defined as a
state bank, a national bank, or a savings bank, which is located in the
State of New Jersey, the deposits of which are insured by the Federal
Deposit Insurance Corporation.
The statutes also require public
depositories to maintain collateral for deposits of public funds that exceed
certain insurance limits. All collateral must be deposited with the Federal
Reserve Bank or a banking institution that is a member of the Federal
Reserve System and has capital funds of not less than $25,000,000.00.
The Borough of Stockton has the following cash and cash equivalents at
December 31,2012:
Bank
Change
Reconciling Items:
Reconciled
Balance
Funds
Total
Additions
Deletions
Balance
$ 402,659.02
$225.00
$
402,884.02
$ 10,703.46
$ 75.00
$ 413,512.48
1,827.68
1,827.68
1,827.68
32,618.09
32,618.09
185.66
5,451.96
27,351.79
625,521.94
625,521.94
462.00
585.00
625,398.94
Water Utility Operating Fund
Sewer Utility Operating Fund
52,442.77
280,877.47
52,442.77
280,877.47
52,442.77
264.70
281,142.17
TOTAL DECEMBER 31,2012
$1,395,946.97
$225.00
$ 1,396,171.97
$ 11,615.82
$6,111.96
$1,401,675.83
Custodial Credit Risk - Deposits - Custodial credit risk is the risk that in
the event of a bank failure, the deposits may not be returned.
The
Borough does not have a specific deposit policy for custodial credit risk
other than those policies that adhere to the requirements of statute. As of
December 31, 2012, based upon the coverage provided by FDIC and
NJGUDPA, no amount of the bank balance was exposed to custodial
credit risk. Of the cash on balance in the bank, $250,000.00 was covered
by Federal Depository Insurance and $1,145,946.97 was covered under
the provisions of NJGUDPA.
9
NOTE 2:
CASH AND CASH EQUIVALENTS (CONTINUED)
B.
Investments
The purchase of investments by the Borough is strictly limited by the
express authority of the New Jersey Local Fiscal Affairs Law, N.J.S.A.
40A:5-15.1. Permitted investments include any of the following type of
securities:
1.
Bonds or other obligations of the United States of America or
obligations guaranteed by the United States of America;
2.
Government money market mutual funds which are purchased
from an investment company or investment trust which is
registered with the Securities and Exchange Commission under
the "Investment Company Act of 1940," 15 U.S.C. 80a-1 et seq.,
and operated in accordance with 17 C.F.R. § 270.2a-7 and which
portfolio is limited to U.S. Government securities that meet the
definition of an eligible security pursuant to 17 C.F.R. § 270.2a-7
and repurchase agreements that are collateralized by such U.S.
Government securities in which direct investment may be made
pursuant to paragraphs (1) and (3) of N.J.S.A. 5-15.1.
These
funds are also required to be rated by a nationally recognized
statistical rating organization.
3.
Any obligation that a federal agency or a federal instrumentality
has issued in accordance with an act of Congress, which security
has a maturity date not greater than 397 days from the date of
purchase, provided that such obligation bears a fixed rate of
interest not dependent on any index or other external factor;
4.
Bonds or other obligations of the Local Unit or bonds or other
obligations of school districts of which the Local Unit is a part or
within which the school district is located.
5.
Bonds or other obligations, having a maturity date not more than
397 days from date of purchase, approved by the Division of
Investment of the Department of Treasury for investment by Local
Units;
6.
Local government investment pools that are fully invested in U.S.
Government securities that meet the definition of eligible security
pursuant to 17 C. F. R. § 270a-7 and repurchase agreements that
are collateralized by such U.S. Government securities in which
direct investment may be made pursuant to paragraphs (1) and
(3) of N.J.S.A. 5-15.1. This type of investment is also required to
be rated in the highest category by a nationally recognized
statistical rating organization.
10
NOTE 2:
NOTE 3:
CASH AND CASH EQUIVALENTS (CONTINUED)
B.
Investments (Continued)
7.
Deposits with the State of New Jersey Cash Management Fund
established pursuant to section 1 of P.L. 1977, c.281 (c.52:18A-
90.4); or
8.
Agreements for the repurchase of fully collateralized securities if:
a.
the
underlying
securities
are
permitted
investments
pursuant to paragraphs (1) and (3) of this subsection;
b.
the custody of collateral is transferred to a third party;
c.
the maturity of the agreement is not more than 30 days;
d.
the underlying securities are purchased through a public
depository as defined in section 1 of P.L. 1970, c.236
(c. 17:19-41); and
e.
a master repurchase agreement providing for the custody
and security of collateral is executed.
The Borough of Stockton had no investments outstanding as of
December 31,2012.
Based upon the limitations set forth by New Jersey Statutes 40A:5-15.1
and existing investment practices, the Borough is generally not exposed
to credit risks, custodial credit risks, concentration of credit risks and
interest rate risk for its investments nor is it exposed to foreign currency
risk for its deposits and investments.
MUNICIPAL DEBT
The Local Bond Law, Chapter 40A:2, governs the issuance of bonds to finance
general municipal capital expenditures.
All bonds are retired in annual
installments within the statutory period of usefulness. All bonds issued by the
Borough are general obligation bonds, based by the full faith and credit of the
Borough.
Bond Anticipation Notes, which are issued to temporarily finance
capital projects, shall mature and be paid off within ten years if financed by the
issuance of bonds.
11
NOTE 3:
MUNICIPAL DEBT (CONTINUED)
SUMMARY OF MUNICIPAL DEBT
YEAR 2012
YEAR 2011
YEAR 2010
Issued:
General Capital
Bonds, Notes and Loans
$
919,455.60 $
672,549.18 $
705,769.19
Water Utility:
Bonds and Notes
175,000.00
Sewer Utility:
Bonds and Notes
559,521.26
740,501.80
812,999.81
Net Debt Issued
$ 1,653,976.86 $ 1,413,050.98 $ 1,518,769.00
Authorized But Not Issued:
General Capital - Bonds and Notes
$
425,000.00 $
280,000.00 $
Water Capital - Bonds and Notes
20,000.00
20,000.00
20,000.00
Sewer Utility - Bonds and Notes
22,120.48
24,376.00
24,376.00
Total Authorized But Not Issued
$
467,120.48 $
324,376.00 $
44,376.00
NET BONDS AND NOTES
ISSUED AND AUTHORIZED
BUT NOT ISSUED
$ 2,121,097.34 $ 1,737,426.98 $ 1,563,145.00
SUMMARY OF STATUTORY DEBT CONDITION (ANNUAL DEBT STATEMENT)
The summarized statement of debt condition which follows is prepared in
accordance with the required method of setting up the Annual Debt Statement
and indicates a statutory net debt of 1.299%.
GROSS DEBT
DEDUCTIONS
NET DEBT
Regional School District Debt
$
1,166,543.84 $
1,166,543.84 $
Sewer Utility Debt
581,641.74
581,641.74
Water Utility Debt
195,000.00
195,000.00
General Debt
1,344,455.60
127,443.88
1,217,01172
$
3,287,641.18 $
2,070,629.46 $
1,217,011.72
NET DEBT $1,217,011.72 DIVIDED BY EQUALIZED VALUATION BASIS PER
N.J.S.A. 40A:2-2, $93,706,623 EQUALS 1.299%.
12
NOTE 3:
MUNICIPAL DEBT (CONTINUED)
BORROWING POWER UNDER N.J.S.A. 40A:2-6 AS AMENDED
Equalized Valuation Basis - December 31, 2012
$93,706,623.00
3-1/2% of Equalized Valuation Basis
$3,279,731.81
Net Debt
1.217,011.72
Remaining Borrowing Power at December 31, 2012
$2062 720.09
Equalized Valuation basis is the average of the equalized valuation of Real
Estate, including improvements, and the assessed valuation of Class II Railroad
Property of the Borough for the last three (3) preceding years.
SCHOOL DEBT DEDUCTION
School debt is deductible up to the extent of 3% of the Average Equalized
Assessed Valuation of real property for the Local and Regional School Districts.
CALCULATION OF "SELF-LIQUIDATING PURPOSE" WATER UTILITY
PER N.J.S.A. 40A:2-45
Cash Receipts from Fees, Rents of Other
Charges for Year and Anticipated Surplus
Deduction:
Operating and Maintenance Cost
Excess (Deficit) in Revenue
$84,082.28
74,000.00
$ 10,082.28
CALCULATION OF "SELF-LIQUIDATING PURPOSE" SEWER UTILITY
PER N.J.S.A. 40A:2-45
Cash Receipts from Fees, Rents of Other
Charges for Year and Anticipated Surplus
Deduction:
Operating and Maintenance Cost
Debt Service Per Sewer Utility Account
Excess (Deficit) in Revenue
13
$302,699.81
$151,732.00
91,168.54
242,900.54
$ 59,799.27
NOTE 3:
MUNICIPAL DEBT (CONTINUED)
LONG TERM DEBT:
General Capital
Green Acres Trust Loan:
$200,000.00 of 2005 Trust Loan due in annual
installments of $6,156.74 to $12,131.23 through
January 2025 at an interest rate 2.00%.
New Jersey Environmental Infrastructure Trust Loans:
$300,000.00 of 2006 Trust Loan due in annual
installments of $10,000.00 to $25,000.00 through
August 2026 at variable interest rates of 4.00% to 5.00%.
$282,975.00 of 2006 Trust Loan due in annual
installments of $13,539.43.00 to $16,403.27 through
August 2026.
Sewer Utility Capital
New Jersey Environmental Infrastructure Loans:
$495,000.00 of 2000 Trust Loan due in annual
installments of $25,000.00 to $40,000.00 through
August 2020 at interest rates of 5.00% to 5.25%.
$488,624.00 of 2000 Trust Fund due in annual installments of
principal only $23,688.20 to $26,433.67 through August 2016.
Sewer Improvement Bonds:
$591,000.00 of 1979 Serial Bonds due in annual
installments of $22,577.00 to $33,569.82 through
December 2019 at a variable interest rate.
14
$
136,946.99
$
250,000.00
$
212,508.61
$
265,000.00
91,644.07
$
356,644.07
$
202,877.19
NOTE 3:
MUNICIPAL DEBT (CONTINUED)
Interest
Original
General Capital
Rate
Issue Date
Amount
2010-02
2.72%
9/23/2010 $
40,000.00
2011-01
2.72%
9/21/2012
280,000.00
$
320,000.00
Water Capital
2012-04
2.72%
9/21/2012 $
175,000.00
Bonds and Notes Authorized But Not Issued
At December 31, 2012, the Borough has authorized but not issued bonds and
notes as follows:
General Capital Fund
$425,000.00
Water Utility Capital Fund
$20,000.00
Sewer Utility Capital Fund
$22,120.48
SCHEDULE OF ANNUAL DEBT SERVICE FOR PRINCIPAL AND INTEREST
FOR BONDED DEBT ISSUED AND OUTSTANDING DECEMBER 31, 2012
SEWER UTILITY
Calendar
Year
Principal
Interest
Total
2013
$
24,891.14 $
10,143.86 $
35,035.00
2014
26,135.70
8,899.30
35,035.00
2015
27,442.48
7,592.52
35,035.00
2016
28,814.61
6,220.39
35,035.00
2017
30,255.34
4,779.66
35,035.00
2018
31,768.10
3,266.90
35,035.00
2019
33,569.82
1,678.49
35,248.31
Total
$
202,877.19 $
42,581.12 $
245,458.31
15
NOTE 3:
MUNICIPAL DEBT (CONTINUED)
SCHEDULE OF ANNUAL DEBT SERVICE FOR PRINCIPAL AND INTEREST
FOR NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE LOANS ISSUED AND
OUTSTANDING DECEMBER 31,2012
SEWER UTILITY
Calendar
Trust Loan
Fund Loan
Year
Principal
Interest
Principal
Total
2013
$
30,000.00 $
13,687.50 $
26,433.67 $
70,121.17
2014
30,000.00
12,187.50
25,526.08
67,713.58
2015
30,000.00
10,687.50
24,618.49
65,305.99
2016
30,000.00
9,150.00
15,065.83
54,215.83
2017
35,000.00
7,612.50
42,612.50
2018
35,000.00
5,775.00
40,775.00
2019
35,000.00
3,937.50
38,937.50
2020
40,000.00
2,100.00
42,100.00
Total
$
265,000.00 $
65,137.50 $
91,644.07 $
421,781.57
SCHEDULE OF ANNUAL DEBT SERVICE FOR PRINCIPAL AND INTEREST
FOR NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE LOANS ISSUED AND
OUTSTANDING DECEMBER 31,2012
Calendar
Trust Loan
Fund Loan
Year
Principal
Interest
Principal
Total
2013
$
15,000.00 $
11,012.50 $
16,371.61 $
42,384.11
2014
15,000.00
10,262.50
15,899.59
41,162.09
2015
15,000.00
9,512.50
15,427.55
39,940.05
2016
15,000.00
8,762.50
14,955.52
38,718.02
2017
15,000.00
8,012.50
14,483.49
37,495.99
2018
15,000.00
7,412.50
14,105.87
36,518.37
2019
15,000.00
6,812.50
13,728.23
35,540.73
2020
20,000.00
6,212.50
16,497.49
42,709.99
2021
20,000.00
5,412.50
15,993.99
41,406.49
2022
20,000.00
4,587.50
15,474.75
40,062.25
2023
20,000.00
3,762.50
14,955.52
38,718.02
2024
20,000.00
2,912.50
14,420.55
37,333.05
2025
20,000.00
1,912.50
13,791.18
35,703.68
2026
25,000.00
1,062.50
16,403.27
42,465.77
Total
$
250,000.00 $
87,650.00 $
212,508.61
$
550,158.61
16
NOTE 3:
NOTE 4:
MUNICIPAL DEBT (CONTINUED)
SCHEDULE OF ANNUAL DEBT SERVICE FOR PRINCIPAL AND INTEREST
FOR GREEN TRUST LOANS ISSUED AND
OUTSTANDING DECEMBER 31, 2012
Calendar
Trust Loan
Year
Principal
Interest
Total
2013
$
9,746.19 $
2,690.45 $
12,436.64
2014
9,942.08
2,494.56
12,436.64
2015
10,141.92
2,294.72
12,436.64
2016
10,345.77
2,090.87
12,436.64
2017
10,553.72
1,882.91
12,436.63
2018
10,765.86
1,670.78
12,436.64
2019
10,982.24
1,454.39
12,436.63
2020
11,202.99
1,233.65
12,436.64
2021
11,428.17
1,008.47
12,436.64
2022
11,657.88
778.76
12,436.64
2023
11,892.20
544.44
12,436.64
2024
12,131.23
305.41
12,436.64
2025
6,156.74
61.57
6,218.31
Total
$
136,946.99 $
18,510.98 $
155,457.97
FUND BALANCES APPROPRIATED
Fund balances at December 31, 2012 which were appropriated and included as
anticipated revenue in their own respective funds for the year ending
December 31, 2013 were as follows:
Current Fund
Water Operating Fund
Sewer Operating Fund
17
$
163,000.00
$
None
$
None
NOTE 5:
NOTE 6:
NOTE 7:
PROPERTY TAXES
Property taxes attach as an enforceable lien on property as of January 1. Taxes
are levied based on the final adoption of the current year municipal budget, and
are payable in four installments on February 1, May 1, August 1 and
November 1.
The Borough bills and collects its own property taxes and also
taxes for the County and local school district. The collections and remittance of
county and school taxes are accounted for in the Current Fund.
Borough
property tax revenues are recognized when collected in cash and any
receivables are recorded with offsetting reserves on the balance sheet of the
Borough's Current Fund.
Taxes collected in advance - Taxes collected in advance and recorded as cash
liabilities in the financial statements are as follows:
Prepaid Taxes
PENSION PLANS
BALANCE
DECEMBER
31,2012
$1,432.27
BALANCE
DECEMBER
31,2011
$2,235.89
Borough employees, who are eligible for a pension plan, are enrolled in one of
two pension systems administered by the Division of Pensions, Treasury
Department of the State of New Jersey. The plans are: the Public Employees
Retirement System and the Police and Firemen's Retirement System.
The
Division annually charges participating government units for their respective
contributions to the plans based upon actuarial methods. Certain portions of the
costs are contributed by the employees. The Borough's share of pension costs,
which is based upon the annual billings received from the State, amounted to
$10,252.00 for 2010, $12,591.00 for 2011.and $12,859.00 for 2012.
Information as to the comparison of the actuarially computed value of vested
benefits with the system's assets is not available from the State Retirement
System and, therefore, is not presented.
COMPENSATED ABSENCES
The Borough does not have a policy which allows employees to accrue unused
vacation and sick pay.
18
NOTE 8:
NOTE 9:
NOTE 10:
NOTE 11:
LITIGATION
The Borough Attorney's letter did not indicate any litigation, claims or contingent
liabilities that are either not covered by the Borough's insurance carrier or would
have a material financial impact on the Borough.
TAX APPEALS
There are tax appeals filed with the County and State Tax Court of New Jersey
requesting a reduction of assessments for the year 2012.
Any reduction in
assessed valuation will result in a refund of prior years' taxes in the year of
settlement, which may be funded from tax revenues through the establishment of
a reserve or by the issuance of refunding bonds per N.J.SAOA:2-51.
CONTINGENT LIABILITIES
The Borough participates in several federal and state financial assistance grant
programs. Entitlement to the funds is generally conditional upon compliance with
terms and conditions of the grant agreements and applicable regulations,
including the expenditure of funds for eligible purposes.
Findings and
questioned costs, if any, relative to federal and state financial assistance
programs will be discussed in detail in Part II of the 2012 audit report.
In
addition, these programs are also subject to compliance and financial audits by
the grantors or their representatives. As of December 31, 2012, the Borough
does not believe that any material liabilities will result from such audits.
RISK MANAGEMENT
The Borough is exposed to various risks of loss related to torts; theft of, damage
to, and destruction of assets; errors and omissions, injuries to employees; and
natural disasters.
The Borough maintains commercial insurance coverage
covering each of those risks of loss. Management believes such coverage is
sufficient to preclude any significant uninsured losses to the Borough. Settled
claims have not exceeded this commercial coverage in any of the past three
fiscal years.
19
NOTE 12:
INTERFUND RECEIVABLES AND PAYABLES
The following interfund balances remained on the balance sheets at December 31,
2012:
INTERFUND
INTERFUND
FUND
RECEIVABLE
PAYABLE
Current
$6,215.17
$37,816.58
Grant
8,667.28
Animal Control
193.28
Trust Other
4,235.19
General Capital
29,149.30
152,170.04
Water Utility Operating
88,718.57
2,116.14
Water Utility Capital
152,170.04
88,718.57
Sewer Utility Operating
2,116.14
48,890.64
Sewer Utility Capital
47,103.94
TOTAL
$334,140.44
$334,140.44
All balances resulted from the time lag between the dates that short-term loans
were disbursed and payments between funds were made.
NOTE 13:
LENGTH OF SERVICE AWARDS PROGRAM
The Borough approved a Voluntary Length of Service Awards Program (LOSAP)
on November 4, 2003.
Under the program, a fixed amount of funds may be
contributed on behalf of those volunteer fire and medical personnel which meet the
eligibility criteria adopted by the governing body of the Borough. The Borough's
sponsoring agency is Lincoln National, with the maximum contribution per
volunteer set at $380.00 for 2012.
20
BOROUGH OF STOCKTON
SUPPLEMENTARY SCHEDULES - ALL FUNDS
YEAR ENDED DECEMBER 31,2012
Balance, December 31,2011
Increased by Receipts:
Collector
State of New Jersey-Chapter 20, P.L. 1971
Revenue Accounts Receivable
Miscellaneous Revenue Not Anticipated
Appropriation Reserves Refunds
Interfunds Received
Reserve for Grants - Unappropriated
Decreased by Disbursements:
2012 Appropriations
2011 Appropriation Reserves
Interfunds Disbursed
County Taxes
Local District School Tax
Regional High School Tax
Miscellaneous Reserves
Refund of Current Years Revenue
Refund of Prior Year Revenues
Balance, December 31,2012
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF CASH-TREASURER
REF.
CURRENT FUND
A
$
382,17742
A-5
$
1,978,11943
A-8
6,500.00
A-9
110,665.62
A-2
17,95641
A-13
8,826.00
A-10
111,536.64
A-12
2,233,604.10
$
2,615,781.52
A-3
$
418,32543
A-13
17,843.95
A-10:A-23
94,397.86
A-14
327,090.57
A-15
664,284.00
A-16
628,494.89
A-21
22,698.30
A-2
6,039.82
A-1
23,319.22
2,202,494.04
A
$
413,28748
"A-4tl
FEDERAL AND STATE
GRANT FUND
$
$
4,537.34
4,537.34
$
4,537.34
$
4,537.34
4,537.34
$
-0-
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF CASH-COLLECTOR
Received:
Interest on Delinquent Taxes
Taxes Receivable
2012 Taxes Prepaid
Tax Overpayments
Outside Liens
Senior Citizen Deductions Disallowed
Miscellaneous Revenue Not Anticipated
Decreased by Disbursements:
Payments to Treasurer
A-9
A-7
A-17
A-18
A-21
A-8
A-2
A-4
$
6,646.53
1,945,403.53
1,432.27
1,668.80
22,698.30
250.00
20.00
$
1,978,119.43
$
1,978,119.43
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF DEFERRED CHARGES
BALANCE
RAISED
DECEMBER
IN 2012
31,2011
BUDGET
Overexpenditure of Appropriation
$
615.93
$
615.93
Overexpenditure of Appropriation Reserves
2,365.82
2,365.82
Emergency Authorization
30,000.00
30,000.00
$
32,981.75
$
32,981.75
REF.
A
A-3
"A-T'
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY
BALANCE
BALANCE
DECEMBER
COLLECTED
OVERPAYMENTS
DECEMBER
YEAR
31 2011
2012 LEVY
IN 2011
IN 2012
APPLIED
CANCELED
31,2012
2011
$
25,543.30
$
$
$
25,537.85
$
$
5.45
$
$
25,543.30
$
$
$
25,537.85
$
$
5.45
$
2012
1,954,037.87
2,235.89
1,926,865.68
978.63
8,177.63
15,78004
$
25,543.30
$
1,954,037.87
$
2,235.89
$
1,952,403.53
$
978.63
$
8,183.08
$
15,780.04
REF.
A
A-2:A-17
A-2
A-2·.A-18
A
Collector
A-5
$
1,945,403.53
State of New Jersey
A-8
7,000.00
$
1,952,403.53
ANALYSIS OF 2012 PROPERTY TAX LEVY
TAX YIELD
General Purpose Tax
$
1,951,039.30
Added Taxes (54.4-63.1 et. seq.)
2,998.57
$
1,954,037.87
TAX LEVY
Regional High School Tax (Abstract)
A-16
$
628,49489
Local District School Tax (Abstract)
A-15
664,284.00
County Taxes:
County Tax (Abstract)
A-14
$
327,090.57
Due County for Added Taxes (54:4-63.1 et. seq.)
A-14
504.33
Total County Taxes
327,594.90
Local Tax for Municipal Purposes (Abstract)
A-2
$
330,657.72
Add: Additional Tax Levied
3,006.36
333,664.08
$
1,954,03787
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF DUE STATE OF NEW JERSEY
PER CHAPTER 20, P.L. 1971
Balance, December 31,2011
I ncreased by:
Deductions Per Tax Duplicate:
Senior Citizens
Veterans
Decreased by:
Received From State of New Jersey
Disallowed by Collector - 2011 Taxes
Balance, December 31,2012
SUMMARY OF 2012 EXEMPTIONS
Senior Citizens and Veterans Deductions
Per Tax Billings
REF.
A
$
250.00
6,750.00
A-4
$
6,500.00
A-5
250.00
A
A-7
$
2,529.76
7,000.00
$
9,529.76
6,750.00
$
2,779.76
$
7,000.00
"A-9"
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE
BALANCE
ACCRUED
COLLECTED BY
DECEMBER
REF.
IN 2012
COLLECTOR
TREASURER
31,2012
Clerk:
Alcoholic Beverage Licenses
A-2
$
3,824.00
$
$
3,824.00
$
Municipal Court:
Fines and Costs
A-2
2,948.03
2,716.47
231.56
Interest and Costs on Taxes
A-2
6,646.53
6,646.53
Consolidated Municipal Property Tax Relief Act
A-2
2,414.00
2,414.00
Energy Receipts Tax
A-2
43,157.00
43,157.00
Garden State Preservation Trust Fund
A-2
6,150.00
6,150.00
Hotel and Motel Tax
A-2
26,004.15
26,004.15
Cell Tower Rental
A-2
26,400.00
26,400.00
$
117,543.71
$
6,646.53
$
110,665.62
$
231.56
REF.
A-5
A-4
A
"A-10"
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF INTERFUNDS
WATER
SEWER
ANIMAL
TRUST
GENERAL
UTILITY
UTILITY
GRANT
CONTROL
OTHER
CAPITAL
OPERATING
OPERATING
REF.
TOTAL
FUND
FUND
FUND
FUND
FUND
FUND
Balance, December 31,2011:
Due From
A
$
10,929.57
$
$
409.95
$
3,739.84
$
$
92727
$
5,852.51
Due To
A
66,59308
45,330.82
21,262.26
Cash Receipts
A-4
111,536.64
4,537.34
410.27
4.65
99,804.60
927.27
5,852.51
Cash Disbursements
A-4
94,397.86
193.60
500.00
91,917.56
1,786.70
Transferred from Grant Fund
A-24
41,200.88
41,200.88
Balance, December 31, 2012:
Due From
A
$
6,215.17
$
$
193.28
$
4,235.19
$
$
000
$
1,786.70
Due To
A
37,816.58
8,667.28
29,149.30
"A-11"
BOROUGH OF STOCKTON
GRANT FUND
SCHEDULE OF RESERVE FOR ENCUMBRANCES
Balance, December 31,2011
A
$
3,000.00
Decreased by:
Transfer to Grants Appropriated
A-20
$ ====3~,
O:::::;O=O=.O~O
"A-12"
BOROUGH OF STOCKTON
GRANT FUND
SCHEDULE OF RESERVE FOR GRANTS-UNAPPROPRIATED
BALANCE
BALANCE
DECEMBER
CASH
APPLIED TO
DECEMBER
31,2011
RECEIPTS
RECEIVABLE
31,2012
Clean Communities
$
4,000.00
$
4,000.00
$
4,000.00
$
4,000.00
Recycling Tonnage Grant
129.94
537.34
129.94
537.34
$
4,129.94
$
4,537.34
$
4,129.94
$
4,537.34
REF.
A
A-4
A-19
A
"A-13"
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF 2011 APPROPRIATION RESERVES
BALANCE
BALANCE
DECEMBER
AFTER
PAID OR
BALANCE
31,2011
TRANSFERS
CHARGED
LAPSED
SALARIES AND WAGES
Governing Body
$
75.34 $
75.34 $
$
75.34
Municipal Clerk
0.18
0.18
0.18
Financial Administration
326.00
326.00
326.00
Assessment of Taxes
104.00
104.00
104.00
Revenue Administration
186.95
186.95
186.95
Administrative
4.66
4.66
4.66
Planning Board
101.88
101.88
101.88
Zoning Board
142.50
142.50
142.50
Police
9.00
9.00
9.00
Municipal Prosecutor
285.50
285.50
285.50
Recycling
490.00
490.00
490.00
Animal Control Services
191.50
191.50
191.50
Environmental Commission
43.00
43.00
43.00
Building Inspector
36.00
36.00
36.00
OTHER EXPENSES
Governing Body
534.00
534.00
534.00
Municipal Clerk
1,613.84
1,627.85
14.01
1,613.84
Elections
400.00
400.00
400.00
Financial Administration
2.96
502.96
502.96
Assessment of Taxes
58.96
58.96
58.96
Revenue Administration
346.11
346.11
346.11
Legal Services and Costs
0.19
2,500.19
1,830.31
669.88
Engineering Services
664.55
(2,700.95)
(5,324.73)
2,623.78
Planning Board'
1,354.17
1,354.17
1,354.17
Legal Fees
1.36
1.36
1.36
Planning Fees
116.00
116.00
60.00
56.00
Engineering Fees
247.11
247.11
247.11
Insurance:
Liability Insurance
188.00
188.00
188.00
Flood Insurance
1,218.00
1,218.00
1,218.00
Employee Bonds
130.00
130.00
130.00
Police
75.00
75.00
75.00
Environmental Commission
80.00
80.00
80.00
Public Defender
200.00
200.00
200.00
Streets and Road Maintenance
9,192.00
10,979.00
3,812.98
7,166.02
Snow Removal
3,897.50
3,897.50
3,897.50
Solid Waste Collection
6,557.27
6,557.27
5,460.82
1,096,45
Recycling
1,102.22
1,102.22
1,036.38
65.84
Shade Tree
1,000.00
1,000.00
1,000.00
Building and Grounds
385.79
385.79
4.69
381.10
Animal Control
608.50
608.50
608.50
Board of Health
525.00
525.00
525.00
Recreation Services
2,918.52
2,918.52
2,918.52
Building Inspector
200,00
200.00
200.00
Street Lighting
647.07
1,095,68
1,063,47
32.21
Electricity
2,210.00
2,210.00
2,21000
Telephone
55,97
191.31
172.67
1864
Natural Gas
1,452.73
1,452.73
262.89
1,189.84
Municipal Court
1,188.00
1,188.00
12150
1,066.50
Unemployment Insurance
119.52
119.52
119.52
Length of Service Award Program
2,401.98
2,401,98
2,401.98
Capital Improvement Fund Lambertville Sewerage Authority
3,633.85
3,633.85
3,633.85
Council on Affordable Housing
4,000,00
4,000,00
4,000.00
$
51,322,68 $
53,342,14 $
9,017.95 $
44,324,19
REF.
A
A-1
Balance, December 31,2010
A-13
$
51,322.68 $
Encumbrances Payable
A-22
2,019,46
Cash Disbursements
A-4
17,843.95
Refunds
A-4
(8,826,00)
$
53,342,14 $
9,017,95
IA-14"
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF COUNTY TAXES PAYABLE
REF.
2012 Tax Levy:
County Taxes
A-1 :A-7
$
272,012.07
County Open Space
A-1 :A-7
27,903.40
County Library
A-1 :A-7
27,175.10
County Share of Added Taxes
A-1 :A-7
504.33
$
327,59490
327,594.90
Decreased by:
Cash Disbursements
A-4
327,090.57
Balance, December 31,2012
A
$
504.33
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF LOCAL DISTRICT SCHOOL TAX
REF.
Increased by:
Levy
A-1 :A-7
$
664,284.00
Decreased by:
Cash Disbursements
A-4
$
664,284.00
SCHEDULE OF REGIONAL HIGH SCHOOL TAX
Increased by:
Levy
A-1 :A-7
$
628,494.89
Decreased by:
Cash Disbursements
A-4
$
628,494.89
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF PREPAID TAXES
REF.
Balance, December 31,2011 (2012 Taxes)
A
$
2,235.89
Increased by:
Collection of 2013 Taxes
A-5
1,432.27
$
3,668.16
Decreased by:
Application to 2012 Taxes Receivable
A-7
2,235.89
Balance, December 31,2012 (2013 Taxes)
A
$
1,432.27
"A-18"
SCHEDULE OF TAX OVERPAYMENTS
Balance, December 31, 2011
A
$
20,168.15
Increased by:
Cash Receipts
A-5
1,668.80
$
21,836.95
Decreased by:
Applied
A-7
$
978.63
Canceled
A-1
2,347.74
3,326.37
Balance, December 31,2012
A
$
18,510.58
"A-19"
BOROUGH OF STOCKTON
GRANT FUND
SCHEDULE OF GRANTS RECEIVABLE
BALANCE
ACCRUED
DECEMBER
2012
UNAPPROPRIATED
31,2011
BUDGET
APPLIED
CANCELED
Green Communities Program
$
3,000.00
$
$
$
3,000.00
Clean Communities Program
4,000.00
4,000.00
Recycling Tonnage Grant
129.94
129.94
$
3,000.00
$
4,129.94
$
4,129.94
$
3,000.00
REF.
A
A-2
A-12
A-20
Clean Communities Program
Green Communities Program
Woodruff Foundation
NJ SLA HEOP Grant
Recycling Tonnage Grant
Alcohol Education and Rehabilitation Fund
Smart Growth Planning:
State
Local Match
Delaware River Greenway
Park Services Grant
Municipal Stormwater Regulation Grant
Grants Receivable
Operations
REF.
A-19
A-1
BOROUGH OF STOCKTON
GRANT FUND
SCHEDULE OF RESERVE FOR GRANTS APPROPRIATED
BALANCE
PRIOR YEAR
2012
DECEMBER
ENCUMBRANCES
BUDGET
31,2011
PAYABLE
APPROPRIATIONS
$
17,903.49
$
$
4,000.00
3,000.00
6,500.00
2,405.72
1,929.52
12994
118.79
3,523.60
4,021.90
2,500.00
820.60
1,477.26
$
41,200.88
$
3,000.00
$
4,129.94
A
A-11
A-3
"A-20"
BALANCE
DECEMBER
CANCELED
1.1, 2012
$
17,903.49
$
4,000.00
3,000.00
6,500.00
2,405.72
1,929.52
129.94
118.79
3,523.60
4,021.90
2,500.00
820.60
1,477.26
$
44,200.88
$
4,129.94
A
$
3,000.00
41,200.88
$
44,200.88
"A-21"
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF RESERVE FOR MISCELLANEOUS RESERVES
BALANCE
DECEMBER
CASH
CASH
31, 2011
RECEIPTS
DISBURSEMENTS
CANCELED
Due State and County
$
28.00 $
$
$
28.00
Hotel/Motel Fees
38.00
38.00
Revaluation
100.00
100.00
Flood Damage
2,763.20
2,763.20
Outside Liens
22,698.30
22,698.30
$
2,929.20 $
22,698.30 $
22,698.30
$
2,929.20
REF.
A
A-5
A-4
A-1
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF ENCUMBRANCES PAYABLE
REF.
Balance, December 31,2011
A
$
2,019.46
Increased by:
Charges to Appropriations
A-3
15,814.50
$
17,833.96
Decreased by:
Transferred to Appropriation Reserves
A-13
2,019.46
Balance, December 31,2012
A
$
15,814.50
SCHEDULE OF DUE CURRENT FUND - GRANT FUND
Balance, December 31, 2011
A
$
45,330.82
I ncreased by:
Cash Disbursements
A-4
4,537.34
$
49,868.16
Decreased by:
Canceled
A-10
41,200.88
Balance, December 31,2012
A
$
8,667.28
BOROUGH OF STOCKTON
TRUST FUND
SCHEDULE OF CASH-TREASURER
REF.
ANIMAL CONTROL
TRUST OTHER
Balance, December 31, 2011
B
$
1,722.95
$
27,931.08
Increased by Receipts:
Dog License Fees
B-2
$
1,099.00
$
Due From State of New Jersey
B-3
75.00
Various Reserves and Deposits
B-4
173,821.23
Due Current Fund
B-5
193.92
500.00
1,367.92
174,321.23
$
3,090.87
$
202,252.31
Decreased by Disbursements:
Expenditures Under R.SA:19-15.11
B-2
$
584.00
$
Statutory Excess Due Current Fund
B-2
193.60
Due From State of New Jersey
B-3
75.00
Various Reserves and Deposits
B-4
174,895.87
Due Current Fund
B-5
410.59
4.65
1,263.19
174,900.52
Balance, December 31, 2012
B
$
1,827.68
$
27,351.79
BOROUGH OF STOCKTON
TRUST FUND
SCHEDULE OF RESERVE FOR ANIMAL CONTROL TRUST FUND EXPENDITURES
Balance, December 31, 2011
Increased by:
Animal Control Fees Collected
Decreased by:
Expenditures Under R.S.4:19-15.11:
Cash Disbursements
Statutory Excess Due Current Fund
Balance, December 31,2012
B
B-1
B-1
B-1
B
$
LICENSE FEES COLLECTED
584.00
193.60
YEAR
AMOUNT
2011
2010
$
947.60
642.20
$
1,589.80
SCHEDULE OF DUE STATE OF NEW JERSEY-
ANIMAL CONTROL FUND
Balance, December 31,2011
B
Increased by:
Cash Receipts
B-1
Decreased by
Cash Disbursements
B-1
Balance, December 31, 2012
B
$
1,268.40
1,099.00
$
2,367.40
777.60
$ ===1=,5=8=9=.8=0
$
44.60
75.00
$
119.60
75.00
$
44.60
BOROUGH OF STOCKTON
TRUST FUND
SCHEDULE OF VARIOUS RESERVES AND DEPOSITS
BALANCE
BALANCE
DECEMBER
CASH
DECEMBER
31,2011
RECEIPTS
EXPENDED
31,2012
State Unemployment Insurance
$
13,378.15 $
1,015.78 $
116.00 $
14,277.93
Stockton Park Auxiliary
906.64
906.64
Tax Sale Premiums
500.00
500.00
Payroll Agency
5,048.34
157,120.52
158,700.62
3,468.24
Planning Board Escrow
4,358.11
15,684.93
15,579.25
4,463.79
$
24,191.24 $
173,821.23 $
174,895.87 $
23,116.60
REF.
B
B-1
B-1
B
BOROUGH OF STOCKTON
TRUST FUND
SCHEDULE OF DUE CURRENT FUND
TRUST
ANIMAL
REF.
TOTAL
OTHER
CONTROL
Balance, December 31,2011:
Due to
B
$
4,149.79
$
3,739.84 $
409.95
Increased by:
Cash Receipts
B-1
693.92
500.00
193.92
Decreased by:
Cash Disbursements
B-1
415.24
4.65
410.59
Balance, December 31,2012:
Due to
B
$
4,428.47
$
4,235.19 $
193.28
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF CASH - TREASURER
REF.
Balance, December 31, 2011
C
$
19,238.68
Increased by Receipts:
Budget Appropriations:
Capital Improvement Fund
C-9
$
100.00
Interfunds
C-10
267,795.38
Miscellaneous Deposits
C-4
124,468.88
Bond Anticipation Notes
C-8
320,000.00
N.J. Environmental Trust Loan Receivable
C-14
21,663.22
Grants Receivable
C-6
190,457.88
$
924,485.36
943,724.04
Decreased by Disbursements:
Bond Anticipation Notes
C-8
$
40,000.00
Contracts Payable
C-15
151,675.72
Miscellaneous Deposits
C-4
3,137.00
Interfunds
C-10
123,512.38
318,325.10
Balance, December 31, 2012
C
$
625,398.94
Capital Improvement Fund
Contracts Payable
Grants Receivable
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
ANALYSIS OF CASH
New Jersey Environmental Trust Loan Receivable
Improvement Authorizations Expended as Set Forth on "C-5"
I nterfunds Receivable
Interfunds Payable
Miscellaneous Reserves
Capital Fund Balance
Unexpended Proceeds of Bond Anticipation Notes Issued as Set Forth on "C-5"
REF.
$
BALANCE
DECEMBER
31,2012
140,007.95
11,569.00
(13,536.67)
(104,798.06)
(12,439.00)
(29,149.30)
152,170.04
202,461.88
132,267.01
146,846.09
$ =====6:=2=5=,3=98=.9=4=
C-2
"C-4"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF RESERVE FOR MISCELLANEOUS DEPOSITS
BALANCE
BALANCE
DECEMBER
CASH
CASH
DECEMBER
31~
RECEIPTS
DISBURSEMENTS
CANCELED
31, 2012
Road Construction
$
7,406.50 $
$
1,137.00 $
6,269.50 $
Purchase of Recreation Equipment
2,215.00
2,215.00
Debt Service
2,975.00
200.00
3,175.00
State Aid
35,000.00
35,000.00
Purchase of Fire Equipment
21,500.00
21,500.00
Purchase of OEM Equipment
817.00
817.00
Purchase of Public Safety Equipment
10,000.00
10,000.00
Open Space Acquisition
12,549.07
12,549.07
Improvements to Playgrounds
2,000.00
2,000.00
Master Plan Revisions
5,486.00
5,486.00
N.J. DOT - Prallsville Road Improvements
124,268.88
124,268.88
Preliminary Expenses:
Mill Street Feasibility Study
1,834.95
1,834.95
N.J. DOT Grant Preparation
2,000.00
2,000.00
$
103,783.52 $
124,468.88 $
3,137.00 $
22,653.52 $
202,461.88
REF.
C
C-2
C-2
C
Capital Improvement Fund
C-9
$
3,834.95
Surplus
C-1
18,818.57
$
22,653.52
"C-5"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
ANALYSIS OF BALANCE, DECEMBER 31, 2012
BALANCE
BOND
UNEXPENDED
ORDINANCE
DECEMBER
ANTICIPATION
IMPROVEMENT
NUMBER
IMPROVEMENT DESCRIPTION
31,2012
NOTES
EXPENDITURES
AUTHORIZATIONS
2010-02
Improvements to Woolverton Road
$
40,000.00 $
40,000.00 $
$
2011-01
Improvements to Old Prallsville Road
280,000.00
280,000.00
2012-08
Road and Drainage Improvements - Wilson Drive
425,000.00
12,439.00
412,561.00
$
745,000.00 $
320,000.00 $
12,439.00 $
412,561.00
REF.
C
C-8
C-3
Improvement Authorizations-Unfunded
C-7
$
559,407.09
Less: Unexpended Proceeds of Bond
Anticipation Notes - 2010-02 and 2011-01
C-3
146,846.09
$
412,561.00
Balance, December 31, 2011
Decreased by:
Cash Receipts
Canceled
Balance, December 31,2012
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF GRANTS RECEIVABLE
C
C-2
C-7
C
$
190,457.88
76,696.22
$
280,690.77
267,154.10
$ ===13=,5=3=6=.6=7
"C-7"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
BALANCE
BALANCE
ORDINANCE
ORDINANCE
DECEMBER 31,2011
2012
PAID OR
DECEMBER 31, 2012
NUMBER
IMPROVEMENT DESCRIPTION
DATE
AMOUNT
FUNDED
UNFUNDED
AUTHORIZATIONS
CHARGED
CANCELED
FUNDED
UNFUNDED
General Improvements:
Reconstruction of Mill Street
10/17/05
$
300,000.00
$
$
$
$
$
$
$
04/24106
325,000.00
06/26/06
475,00000
33,153.22
33,153.22
Purchase of Copy Machine
09/26105
5,000.00
5.00
5.00
Improvements to Bridge Street
04/24/06
2,000,000.00
02/11108
260,000.00
194,922.16
5,244.00
189,678.16
2010-02
Woolverton Road
02108/10
140,000.00
449.41
(2,893.06)
3,342.47
2011-01
Old Prallsville Road
04/11/11
280,000.00
280,000.00
136,496.38
143,503.62
2012-08
Road and Drainage Improvements - Wilson Drive
12/10/12
425,000.00
425,000.00
12,439.00
412,561.00
$
228,080.38
$
280,449.41
$
425,000.00
$
151,286.32
$
222,836.38
$
$
559,407.09
REF.
C
C
C-15
CC-3
CC-5
Deferred Charges to Future Taxation - Unfunded
$
425,000.00
$
Grants Receivable
C-6
76,696.22
Loan Receivable
C-15
33,153.22
Capital Surplus
C-1
112,986.94
$
425,000.00
$
222,836.38
"C-8"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF BOND ANTICIPATION NOTES
DATE OF
ISSUE OF
BALANCE
BALANCE
ORIGINAL
DATE OF
DATE OF
INTEREST
DECEMBER
DECEMBER
ORDINANCE
IMPROVEMENT DESCRIPTION
NOTE
ISSUE
MATURITY
RATE
31,2011
INCREASED
DECREASED
31,2012
2010-02
Improvements to Woolverton St.
09/23/10
09/22/11
09/21/12
2,59%
$
40,000,00 $
$
40,000,00 $
09/21/12
09/20/13
2,72%
40,000,00
40,000,00
2011-01
Improvements to Old Prallsville Road
09/21/12
09/21/12
09/20/13
2,72%
280,000,00
280,000,00
$
40,000,00 $
320,00000 $
40,000,00 $
320,000,00
REF,
C
C-2
C-2
C:C-5
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
REF.
Balance, December 31, 2011
C
$
136,073.00
I ncreased by:
2012 Budget Appropriation
C-2
$
100.00
Reserve for Preliminary Expenses Canceled
C-4
3,834.95
3,934.95
Balance, December 31,2012
C
$
140,007.95
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF INTERFUNDS
WATER
CURRENT
CAPITAL
REF.
TOTAL
FUND
FUND
Balance, December 31, 2011:
Due From
C
$
21,262.26 $
21,262.26 $
Receipts
C-2
267,795.38
92,795.38
175,000.00
Disbursements
C-2
123,512.38
100,682.42
22,829.96
Balance, December 31, 2012:
Due From
C
$
29,149.30 $
29,149.30 $
Due To
C
152,170.04
152,170.04
Balance, December 31,2011
Decreased by:
Bonds Paid by Budget
Loans Paid by Budget
Balance, December 31, 2012
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES
TO FUTURE TAXATION FUNDED
REF.
C
C-13
$
C-12
C
$
632,549.18
23,539.43
9,554.15
33,093.58
$
599,455.60
"C-12"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF GREEN TRUST LOANS PAYABLE
DATE OF
AMOUNT OF
OUTSTANDING
BALANCE
BALANCE
ORIGINAL
ORIGINAL
DECEMBER 31,2012
INTEREST
DECEMBER
DECEMBER
IMPROVEMENT DESCRIPTION
ISSUE
ISSUE
DATE
AMOUNT
RATE
31, 2011
DECREASED
31,2012
Open Space Acquisition
01/07/05
$
200,000.00
2013
$
9,746.19
2014
9,942.08
2015
10,141.92
2016
10,345.77
2017
10,553.72
2018
10,765.86
2019
10,982.24
2020
11,202.99
2021
11,428.17
2022
11,657.88
2023
11,892.20
2024
12,131.23
2025
6,156.74
2.00%
$
146,501.14 $
9,554.15 $
136,946.99
REF.
C
C-11
C
"C-13"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST LOANS PAYABLE
DATE OF
AMOUNT OF
OUTSTANDING
BALANCE
BALANCE
ORIGINAL
ORIGINAL
DECEMBER 31, 2012
INTEREST
DECEMBER
DECEMBER
IMPROVEMENT DESCRIPTION
ISSUE
ISSUE
DATE
AMOUNT
RATE
31 2011
DECREASED
31 2012
Mill Street
11/09/06
$
300,000.00
08101/13-16
$
15,000.00
5.000%
$
$
$
08/01/17-19
15,000.00
4.000%
08101/20
20,000.00
4.000%
08/01/21-22
20,000.00
4125%
08101/23
20,000.00
4.250%
08/01/24
20,000.00
5.000%
08101/25
20,000.00
4.250%
08101/26
25,000.00
4.250%
260,000.00
10,000.00
250,000.00
Mill Street
11/09/06
282,975.00
2013
16,371.61
2014
15,899.59
2015
15,427.55
2016
14,955.52
2017
14,483.49
2018
14,105.87
2019
13,728.23
2020
16,497.49
2021
15,993.99
2022
15,474.75
2023
14,955.52
2024
14,420.55
2025
13,791.18
2026
16,403.27
226,048.04
13,539.43
212,508.61
$
486,048.04
$
23,539.43 $
462,508.61
REF.
C
C-11
C
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF NEW JERSEY ENVIRONMENTAL TRUST LOANS RECEIVABLE
Balance, December 31, 2011
Decreased by:
Cash Receipts
Canceled
Balance, December 31, 2012
Balance, December 31,2011
Increased by:
C
C-2
C-7
C
$
SCHEDULE OF CONTRACTS PAYABLE
C
Charges to Improvement Authorizations
C-7
Decreased by:
Cash Disbursements
C-2
Balance, December 31, 2012
C
21,663.22
33,153.22
$
159,614.50
54,816.44
$ ==1
0=4=,7::::9=8.::::06=
$
11,958.40
151,286.32
$
163,244.72
151,675.72
$
11,569.00
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
ORDINANCE
NUMBER
2012-08
IMPROVEMENT DESCRIPTION
Road and Drainage Improvements - Wilson Drive
BALANCE
DECEMBER
31,2012
$ ===42=5=,0=0=0=0=0
Balance, December 31, 2011
Increased by Receipts:
Collections
Interfunds
Capital Outlay
Bond Anticipation Notes
Miscellaneous Revenue Not Anticipated
Decreased by Disbursements:
2012 Appropriations
2011 Appropriation Reserves
Improvement Authorizations
Interfunds
Balance, December 31, 2012
BOROUGH OF STOCKTON
WATER UTILITY FUND
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31) 2012
REF.
OPERATING
D
$
153,317.19
D-6
$
83,281.41
D-15:D-16
13,633.01
D-17
D-2
800.87
97,715.29
$
251,032.48
D-3
$
53,507.87
D-9
1,143.25
D-10
D-15:D-16
143,938.59
198,589.71
D
$
52,442.77
"D-4"
CAPITAL
$
$
163,773.90
5,000.00
175,000.00
343,773.90
$
343,773.90
$
163,773.90
180,000.00
343,773.90
$
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
SCHEDULE OF ENCUMBRANCES PAYABLE
REF.
Balance, December 31, 2011
D
$
256.56
Increased by:
Transferred from Budget
D-3
765.43
$
1,021.99
Decreased by:
Transferred to Appropriation Reserves
D-9
256.56
Balance, December 31, 2012
D
$
765.43
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
SCHEDULE OF CONSUMER ACCOUNTS RECEIVABLE
Balance, December 31, 2011
D
$
5,271.39
Increased by:
Water Rents Levied - Net
81,637.04
$
86,908.43
Decreased by:
Collection
D-2:D-4
83,281.41
Balance, December 31,2012
D
$ ===3=,6=2=7=.0=2
"D-7"
SCHEDULE OF OVERPAYMENTS
Balance, December 31,2011
D
$
353.84
Decreased by:
Canceled
D-1
$
353.84
======
"0-8"
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
BALANCE
TRANSFER
BALANCE
ORDINANCE
ORDINANCE
DECEMBER
TO FIXED
DECEMBER
NUMBER
IMPROVEMENT DESCRIPTION
DATE
AMOUNT
31,2011
AUTHORIZED
CAPITAL
CANCELED
31 2012
General Improvements:
Construction of New Water Services on Broad and
03/26/01
$
10,200.00 $
10,200.00
$
$
10,163.00
$
37.00
$
Bridge Street
Painting of the Water Tank
01/28/02
40,000.00
40,000.00
39,03500
965.00
01/27/03
18,000.00
18,000.00
18,000.00
Authorizing New Services on Railroad Ave and
Main Street
11/29/04
6,500.00
6,500.00
6,500.00
Preparation of Environmental Protection Application
06/26/06
8,500.00
8,500.00
6,763.93
1,736.07
2006-21
Purchase and Installation of Equipment
12101/06
10,000.00
10,000.00
10,000.00
2007-11
Purchase and Installation of Equipment
10/29/07
10,000.00
10,000.00
10,000.00
2008-11
Acquisition and Installation of Capital Equipment
11/10108
20,000.00
20,000.00
20,000.00
2011-05
Acquisition and Installation of Capital Equipment
11/14/11
15,000.00
15,000.00
15,000.00
2012-04
Pump Station Repairs
03/12/12
175,000.00
175,000.00
175,000.00
$
138,200.00
$
175,000.00
$
80,461.93
$
2,738.07
$
230,000.00
REF.
D
D-10
D-14
D-11
0
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
SCHEDULE OF 2011 APPROPRIATION RESERVES
BALANCE
BALANCE
DECEMBER
AFTER
PAID OR
BALANCE
31,2011
TRANSFERS
CHARGED
LAPSED
Operating:
Salaries and Wages
$
8,202.71 $
8,202.71 $
$
8,202.71
Other Expenses
12,016.21
12,272.77
1,143.25
11,129.52
Contributions to:
Social Security System (OAS.L)
532.66
532.66
532.66
$
20,751.58 $
21,008.14 $
1,143.25 $
19,864.89
REF.
D
D-4
D-1
Balance, December 31, 2011
D-9
$
20,751.58
Encumbrances Payable
D-5
256.56
$
21,008.14
ORDINANCE
NUMBER
IMPROVEMENT DESCRIPTION
General Improvements:
Construction of New Water Services on
Broad and Bridge Street
Painting of Water Tank
Preparation of Environmental Protection Application
2006-21
Purchase and Installation of Equipment
2007-11
Purchase and Installation of Equipment
2008-11
Acquisition and Installation of Capital Equipment
2011-05
AcquiSition and Installation of Capital Equipment
2012-04
Pump Station Repairs
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
BALANCE
ORDINANCE
DECEMBER 31,2011
2012
PAID OR
DATE
AMOUNT
FUNDED
UNFUNDED
AUTHORIZATION
CHARGED
03/26/01
$
10,200.00 $
37.00 $
$
$
$
01/28/02
40,000.00
01/27/03
18,000.00
965.00
06/26/06
8,500.00
1,736.07
12/01/06
10,000.00
4,125.00
10/29/07
10,000.00
4,872.30
11/10108
20,000.00
17,745.00
11/14/11
15,000.00
15,000.00
03/12/12
175,000.00
175,000.00
163,773.90
$
26,735.37 $
17,745.00 $
175,000.00 $
163,773.90 $
REF.
D
D
D-8
D-4
CANCELED
37.00 $
965.00
1,736.07
2,738.07 $
D-12
"D-10"
BALANCE
DECEMBER 31,2012
FUNDED
UNFUNDED
$
4,125.00
4,872.30
17,745.00
15,000.00
__
1_1,226.10
23,997.30 $
28,971.10
D
D
"0-11"
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR DEFERRED AMORTIZATION
BALANCE
TRANSFER TO
BALANCE
DATE OF
DECEMBER
RESERVE FOR
DECEMBER
IMPROVEMENT DESCRIPTION
ORDINANCE
~2011
AMORTIZATION
CANCELED
31,2012
General Improvements:
Construction of New Water Services on Broad and
Bridge Street
03/26/01
$
10,200.00 $
10,163.00 $
37.00 $
Painting of Water Tank
01/28/02
40,000.00
39,035.00
965.00
01/27/03
18,000.00
18,000.00
Authorizing New Services on Railroad Ave and Main Street
11/29/04
6,500.00
6,500.00
Preparation of Environmental Protection Application
06/26/06
8,500.00
6,763.93
1,736.07
Ord. 2006-21 Purchase and Installation of Equipment
12/01/06
10,000.00
10,000.00
Ord. 2007-11 Purchase and Installation of Equipment
10/29/07
10,000.00
10,000.00
Ord. 2011-05 Purchase and Installation of Equipment
11/14/11
15,000.00
15,000.00
$
118,200.00 $
80,461.93 $
2,738.07 $
35,000.00
REF.
0
0-13
0-8
0
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
REF.
Balance, December 31,2011
D
$
12,745.00
Increased by:
Improvement Authorizations Canceled
D-10
2,738.07
Balance, December 31,2012
D
$
15,483.07
SCHEDULE OF RESERVE FOR AMORTIZATION
Balance, December 31,2011
D
$
321,915.00
Increase by:
Transfer from Reserve for Deferred Amortization
D-11
80,461.93
Balance, December 31,2012
D
$ ===4=,=02=,3=7=6=.9=3
"D-14"
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL
BALANCE
BALANCE
DECEMBER
DECEMBER
ACCOUNT
31,2011
ADDITIONS
31,2012
Unallocated Balance of 1938 and Prior
$
7,523.00 $
$
7,523.00
Fire Hydrants
15,167.00
15,167.00
Pumping Equipment
32,948.00
32,948.00
Spring and Wells
3,998.00
3,998.00
Storage Tanks
12,574.00
12,574.00
Distribution Mains and Accessories
27,136.00
27,136.00
PUrification System
1,766.00
1,766.00
General Equipment
8,915.00
8,915.00
General Construction Expenditures
3,674.00
3,674.00
Meters
1,145.00
1,145.00
Generator
10,843.00
10,843.00
Thermal Coil Meter Pits
1,781.00
1,781.00
Touch Reader
400.00
400.00
Painting of Various Buildings
1,455.00
1,455.00
Roof Replacements
1,050.00
1,050.00
Purchase and Installation of Water Meters (Ord. 11/12/73)
13,877.00
13,877.00
Repairs and Construction of a Cover for the Reservoir of
the Water System (Ord 11/12/73)
10,100.00
10,100.00
Improvement to the Water Supply System (12/11/74)
2,283.00
2,283.00
Construction of a Water Main Extension (Ord. 04/28/86)
49,650.00
49,650.00
Water Line on Route 523 and Broad Street
35,048.00
35,048.00
Water Tower Pipe Extension
1,185.00
1,185.00
Water Tank Painting
2,227.00
2,227.00
Replacement of Water Line on Ferry Street
56,000.00
56,000.00
Water Line Construction
4,630.00
4,630.00
Water Main Construction on Mill Street
1,390.00
1,390.00
Water Tank Renovations
1,152.00
1,152.00
Well House Renovations
2,423.00
2,423.00
Capital Outlay
11,575.00
11,575.00
Construction of New Water Services on Broad and Bridge Street
10,163.00
10,163.00
Painting of the Water Tank
57,035.00
57,035.00
Authorizing New Services on Railroad Avenue and Main Street
6,500.00
6,500.00
Preparation of EPA Application
6,763.93
6,763.93
$
321,915.00 $
80,461.93 $
402,376.93
REF.
D
D-8
D
"0-15"
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
SCHEDULE OF INTERFUNDS
SEWER
WATER
CURRENT
OPERATING
CAPITAL
REF.
TOTAL
FUND
FUND
FUND
Balance, December 31,2011:
Due From
0
$
4,449.49 $
$
4,449.49 $
Due To
0
48,152.64
927.27
47,225.37
Increased by:
Cash Receipts
0-4
13,633.01
8,633.01
5,000.00
Decreased by:
Cash Disbursements
0-4
143,938.59
927.27
2,067.38
140,943.94
Balance, December 31,2012:
Due From
0
$
88,718.57 $
$
$
88,718.57
Due To
0
2,116.14
2,116.14
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF INTERFUNDS
GENERAL
WATER
CAPITAL
OPERATING
REF.
TOTAL
FUND
FUND
Balance, December 31, 2011:
Due From
D
$
47,225.37 $
$
47,225.37
Increased by:
Cash Receipts
D-4
163,773.90
22,829.96
140,943.94
Decreased by:
Cash Disbursements
D-4
180,000.00
175,000.00
5,000.00
Balance, December 31,2012:
Due From
D
$
152,170.04 $
152,170.04 $
Due To
D
88,718.57
88,718.57
"0-17"
BOROUGH OF STOCKTON
WATER CAPITAL FUND
SCHEDULE OF BOND ANTICIPATION NOTES
DATE OF
ISSUE OF
BALANCE
ORIGINAL
DATE OF
DATE OF
INTEREST
DECEMBER
ORDINANCE
IMPROVEMENT DESCRIPTION
NOTE
ISSUE
MATURITY
RATE
INCREASED
.:li, 2012
2012-04
Pump Station Repairs
09/21/12
09/21/12
09/20/13
2.72%
$
175,000.00 $
175,000.00
$
175,000.00 $
175,000.00
REF.
0-4
0
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
IMPROVEMENT DESCRIPTION
Acquisition and Installation of Capital Equipment
BALANCE
DECEMBER
31,2012
$ __
----.:2::..:0~, 0:...:.0...:..0 ':":"O-=-O
$
20,000,00
Balance, December 31,2011
Increased by Receipts:
Consumer Accounts Receivable
Miscellaneous
Interfunds
N.J. Infrastructure Loan Receivable
Capital Improvement Fund
Decreased by Disbursements:
2012 Appropriations
2011 Appropriation Reserves
Interfunds
Accrued Interest
Refund of Prior Years Revenue
Balance, December 31,2012
BOROUGH OF STOCKTON
SEWER UTILITY FUND
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31,2012
REF.
OPERATING
E
$
198,766.42
E-7
$
297,249.27
E-3
5,450.54
E-8:E-14
59,765.80
E-11
E-12
362,465.61
$
561,232.03
E-4
$
184,195.71
E-10
26,273.20
E-8:E-14
20,670.63
E-6
16,245.71
E-1
32,704.61
280,089.86
E
$
281,142.17
"E-5"
CAPITAL
$
-0-
$
32,704.61
17,022.00
49,726.61
$
49,726.61
$
49,726.61
49,726.61
$
-0-
"E-6"
BOROUGH OF STOCKTON
SEWER UTILITY OPERATING FUND
SCHEDULE OF ACCRUED INTEREST
REF.
Balance, December 31,2011
E
$
7,106.67
Increased by:
Charges to 2012 Budget
E-4
18,298.00
$
25,404.67
Decreased by:
Cash Disbursements
E-5
16,245.71
Balance, December 31,2012
E
$
9,158.96
SCHEDULE OF CONSUMER ACCOUNTS RECEIVABLE
Balance, December 31,2011
E
$
28,314.04
Increased by:
Sewer Use Charges Levied - Net
282,425.22
$
310,739.26
Decreased by:
Collections
E-5
297,249.27
Balance, December 31,2012
E
$
13,489.99
BOROUGH OF STOCKTON
SEWER UTILITY OPERATING FUND
SCHEDULE OF INTERFUNDS
SEWER
WATER
CURRENT
CAPITAL
OPERATING
REF.
TOTAL
FUND
FUND
FUND
Balance, December 31,2011:
Due From
E
$
2,622.67 $
$
2,622.67 $
Due To
E
10,302.00
5,852.51
4,449.49
Receipts
E-5
59,765.80
10,039.19
49,726.61
Disbursements
E-5
20,670.63
14,105.00
6,565.63
Balance, December 31,2012:
Due From
E
$
2,116.14 $
$
$
2,116.14
Due To
E
48,890.64
1,786.70
47,103.94
BOROUGH OF STOCKTON
SEWER UTILITY OPERATING FUND
SCHEDULE OF ENCUBRANCES PAYABLE
Balance, December 31,2011
E
$
26,204,60
Decreased by:
Transfer to Appropriation Reserves
E-10
$ ===26=,2=0=4,=60=
BOROUGH OF STOCKTON
SEWER UTILITY OPERATING FUND
SCHEDULE OF 2011 APPROPRIATION RESERVES
BALANCE
BALANCE
DECEMBER
AFTER
PAID OR
BALANCE
31,2011
TRANSFERS
CHARGED
LAPSED
Operating:
Salaries and Wages
$
7,535,72 $
7,535,72 $
$
7,535,72
Other Expenses
973,44
27,178,04
26,273.20
904,84
Social Security
611,91
611,91
611,91
$
9,121,07 $
35,325,67 $
26,273.20 $
9,052.47
REF,
E
E-5
E-1
Balance, December 31, 2011
E-10
$
9,121,07
Encumbrances Payable
E-9
26,204,60
$
35,325,67
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE LOAN RECEIVABLE
REF.
Balance, December 31, 2011
E
$
174,876.00
Decreased by:
Cash Receipts
E-5
$
32,704.61
Canceled
E-21
108,110.00
140,814.61
Balance, December 31,2012
E
$
34,061.39
SCHEDULE OF CAPITAL IMPROVEMENT FUND
Balance, December 31,2011
E
$
62,02200
Increased by:
Cash Receipts
E-5
17,022.00
Balance, December 31,2012
E
$ ===7=9=,0=44==.==00=
"E-13"
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
BALANCE
TRANSFER
BALANCE
ORDINANCE
ORDINANCE
DECEMBER
TO FIXED
DECEMBER
NUMBER
IMPROVEMENT DESCRIPTION
DATE
AMOUNT
31,2011
CAPITAL
CANCELED
31,2012
Repair and Improvement of the Wastewater
Collection System
07/10/00
$
1,040,000.00 $
1,040,000.00 $
929,634.48 $
110,365.52 $
2008-12
Acquisition and Installation of Capital Equipment
11/10/08
20,000.00
20,000.00
20,000.00
$
1,060,000.00 $
929,634.48 $
110,365.52 $
20,000.00
REF.
E
E-16
E-15
E
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF INTERFUNDS
SEWER
OPERATING
REF.
TOTAL
FUND
Balance, December 31,2011:
Due To
E
$
2,622.67 $
2,622.67
Disbursements
E-5
49,726.61
49,726.61
Balance, December 31, 2012:
Due From
E
$
47,103.94 $
47,103.94
ORDINANCE
NUMBER
IMPROVEMENT DESCRIPTION
Repair and Improvement of the Wastewater
Collection System
2008-12
Acquisition and Installation of Capital Equipment
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
BALANCE
ORDINANCE
DECEMBER 31,2011
DATE
AMOUNT
08/14/00
$
11/10108
1,040,000.00 $
20,000.00
FUNDED
105,989.52 $
1(11; 089.52 $
$==~~
REF.
E
UNFUNDED
4,376.00 $
20,000.00
24,376.00 $
E
CANCELLED
110,365.52 $
110,365.52 $
E-13
"E-15"
BALANCE
DECEMBER 31, 2012
FUNDED
UNFUNDED
$
20,000.00
$
20,000.00
E
E
"E-16"
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL
BALANCE
BALANCE
DECEMBER
DECEMBER
ACCOUNT
31,2011
ADDITIONS
31,2012
Miscellaneous Equipment
$
4,612.00
$
$
4,612.00
Improvement Authorizations:
Construction of Sanitary Sewer System:
1974
1,200,000.00
1,200,00000
1975
165,000.00
165,000.00
1977
362,900.00
362,900.00
1979
157,100.00
157,100.00
Safety Equipment
4,387.00
4,387.00
Engineering Studies
19,600.00
19,600.00
Pump Station Stairways and Landings
18,929.00
18,929.00
Chemical Tank
4,400.00
4,400.00
Comminutor
13,094.00
13,094.00
Repair and Improvements to the Wastewater
Collection System
929,634.48
929,634.48
$
1,950,022.00
$
929,634.48
$
2,879,656.48
REF.
E
E-13
E
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR AMORTIZATION
Balance, December 31,2011
E
$
1,723,438.96
Increased by:
Bonds Paid by Budget
E-20
$
23,705.85
Transfer from Reserve for
Deferred Amortization
E-18
570,869.93
594,575.78
Balance, December 31,2012
E
$
2,318,014.74
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR DEFERRED AMORTIZATION
REF.
Balance, December 31,2011
E
Increased by:
Loans Paid by Budget
E-21
Decreased by:
Transfer to Reserve for Amortization
E-17
SCHEDULE OF RESERVE FOR CAPITAL IMPROVEMENTS
Balance, December 31,2011 and
December 31,2012
E
$
521,705.24
49,164.69
$
570,869.93
$
570,869.93
$ ===3=,0::::::0=.:0:::::.0=0
"E-20"
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF BONDS PAYABLE
DATE OF
AMOUNT OF
OUTSTANDING
BALANCE
BALANCE
ORIGINAL
ORIGINAL
DECEMBER 31,2012
DECEMBER
DECEMBER
IMPROVEMENT DESCRIPTION
ISSUE
ISSUE
DATE
AMOLJNT
:21, 2011
DECREASED
31,2012
Sewer Improvements
1979
$
591,000.00
12/02/13
$
24,891.14
12/02/14
26,135.70
12/02/15
27,442.48
12/02/16
28,814.61
12/02/17
30,255.34
12/02/18
31,768.10
12/02119
33,569.82
$
226,583.04 $
23,705.85 $
202,877.19
REF.
E
E-17
E
"E-21"
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST LOAN PAYABLE
DATE OF
AMOUNT OF
OUTSTANDING
BALANCE
BALANCE
ORIGINAL
ORIGINAL
INTEREST
DECEMBER 31, 2012
DECEMBER
DECEMBER
IMPROVEMENT DESCRIPTION
ISSUE
ISSUE
RATE
DATE
AMOUNT
31,2011
DECREASED
31,2012
N.J. Environmental Infrastructure Trust Loan
10/15/00
$
495,000.00
5.00%
08/01/13
$
30,000.00
$
$
$
5.00%
08/01/14
30,000.00
5.13%
08/01/15
30,000.00
5.13%
08/01/16
30,000.00
5.25%
08/01/17
35,000.00
5.25%
08/01/18
35,000.00
5.25%
08101/19
35,000.00
5.25%
08/01/20
40,000.00
290,000.00
25,000.00
265,000.00
N.J. Environmental Infrastructure Fund Loan
10/15/00
488,624.00
0.00%
08/01/13
26,433.67
08/01/14
25,526.08
08/01/15
24,618.49
08/01/16
15,065.83
223,918.76
132,274.69
91,644.07
$
513,918.76
$
157,274.69
$
356,644.07
REF.
E
E
Paid by Budget
E-18
$
49,164.69
Canceled
E-11
108,110.00
$
157,274.69
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
IMPROVEMENT DESCRIPTION
Repair and Improvement of the Wastewater Collection System
Acquisition and Installation of Capital Equipment
$
BALANCE
DECEMBER
31, 2012
2,120.48
20,000.00
$
22,120.48
BOROUGH OF STOCKTON
PART II
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
SCHEDULE OF EXPENDITURES OF
STATE FINANCIAL ASSISTANCE
NOTES TO THE SCHEDULE OF EXPENDITURES OF
STATE FINANCIAL ASSISTANCE
SUPLEE, CLOONEY & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
308 East Broad Street, Westfield, New Jersey 07090-2122
Telephone 908-789-9300
Fax 908-789-8535
E-mail info@scnco.com
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Honorable Mayor and Members
of the Borough Council
Borough of Stockton
County of Hunterdon
Stockton, New Jersey 08559
We have audited, in accordance with the auditing standards generally accepted in the
United States of America, the audit requirements prescribed by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey and the
standards applicable to financial audits contained in Government Auditing Standards issued by
the Comptroller General of the United States, the regulatory financial statements of the various
individual funds and the account group of the Borough of Stockton, as of and for the year ended
December 31, 2012, and the related notes to the financial statements, which collectively
comprise the Borough's regulatory financial statements, and have issued our report thereon
dated August 16, 2013.
Our report disclosed that, as described in Note 1 to the financial
statements, the Borough of Stockton prepares its financial statements on a basis of accounting
prescribed by the Division of Local Government Services, Department of Community Affairs,
State of New Jersey, that demonstrates compliance with a modified accrual basis and the
budget laws of the State of New Jersey, which is a comprehensive basis of accounting other
than U.S. generally accepted accounting principles.
Internal Control Over Financial Reporting
In planning and performing our audit of the regulatory financial statements, we
considered the Borough's control over financial reporting (internal control) 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 Borough's internal control.
21
SUPLEE, CLOONEY & COMPANY
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. However,
we noted certain immaterial matters involving internal control that we have reported to the
Borough of Stockton in the General Comments and Recommendations Section of the audit
report.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Borough's financial
statements are free from material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with
which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
However, there were immaterial instances of
noncompliance which are discussed in Part III, General Comments and Recommendations
Section of the audit report.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control
and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the entity's internal control or on compliance. This report is an integral part of an
audit performed in accordance with Government Auditing Standards in conSidering the entity's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
August 16, 2013
22
N
VJ
STATE GRANTOR/PROGRAM TITLE
Department of Environmental Protection
Clean Communities Program
Clean Communities Program
Recycling Tonnage Grant
Recycling Tonnage Grant
Total
Department of Transportation
Improvements to Woolverton Road
Improvements to Old Prallsville Road
GRAND TOTAL
BOROUGH OF STOCKTON
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL AWARDS
YEAR ENDED DECEMBER 31,2012
GRANT
GRANT PERIOD
AWARD
STATE ACCOUNT NUMBER
FROM
TO
AMOUNT
4900-765-042-4900-004-V 42Y -6020
Continuous
$
4,000.00 $
4900-765-042 -4900-004-V 42Y -6020
Unappropriated
4,000.00
4900-752-042-4900-001-V42Y -6020
Unappropriated
537.34
4900-752-042-4900-001-V42Y -6020
Continuous
129.94
$
1 0-480-078-6320-001-AKN-TCAP-601 0
Continuous
100,000.00 $
11-480-078-6320-001-AK3-6010
Continuous
155,937.00
$
$
SCHEDULE 1
CUMULATIVE
2012
EXPENDITURES
FUNDS
2012
DECEMBER
RECEIVED
EXPENDITURES
31,2012
$
$
4,000.00
537.34
4,537.34 $
$
$
$
100,000.00
124,268.88
124,268.88
__
1_24,268.88
124,268.88 $
124,268.88 $
224,268.88
128,806.22 $
124,268.88 $
224,268.88
NOTE 1. GENERAL
BOROUGH OF STOCKTON
NOTES TO THE SCHEDULE OF EXPENDITURES OF
STATE FINANCIAL ASSISTANCE
YEAR ENDED DECEMBER 31,2012
The accompanying schedule of expenditures of state financial assistance presents the activity
of all state financial award programs of the Borough of Stockton, County of Hunterdon, New
Jersey.
All state financial awards received directly from state agencies, as well as federal
financial awards passed through other government agencies, is included on the Schedule of
Expenditures of State Financial Assistance.
NOTE 2. BASIS OF ACCOUNTING
The accompanying schedule of expenditures of state financial assistance is presented on the
prescribed basis of accounting, modified accrual basis with certain exceptions, prescribed by
the Division of Local Government Services, Department of Community Affairs, State of New
Jersey, that demonstrates compliance with the budget laws of New Jersey, which is a
comprehensive basis of accounting, other then generally accepted accounting principles. The
basis of accounting, with exception, is described in Note 1 to the Borough's financial statements
- regulatory basis.
NOTE 3. RELATIONSHIP TO STATE FINANCIAL REPORTS
Amounts reported in the accompanying schedule agree with the amounts reported in the related
state financial reports.
NOTE 4. RELATIONSHIP TO FINANCIAL STATEMENTS - REGULATORY BASIS
Amounts reported in the accompanying schedule agree with amounts reported in the Borough's
regulatory basis financial statements. These amounts are reported in the Grant Fund, General
Capital Fund or Trust Other Fund. Reconciliations of revenues and expenses are presented on
the following page.
24
NOTE 4. RELATIONSHIP TO FINANCIAL STATEMENTS - REGULATORY BASIS (CONTINUED)
Revenues:
Grant Fund
General Capital Fund
Expenditures:
General Capital Fund
NOTE 5. OTHER
State
Total
$
4,537.34
$
4,537.34
124,268.88
124,268.88
$
128,806.22
$
128,806.22
$
124,268.88
$
124,268.88
$
124,268.88
$
124,268.88
Matching contributions expended by the Borough in accordance with terms of the various grants
are not reported in the accompanying schedule.
25
PART III
BOROUGH OF STOCKTON
STATISTICAL DATA
LIST OF OFFICIALS
COMMENTS AND RECOMMENDATIONS
YEAR ENDED DECEMBER 31,2012
COMPARATIVE STATEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE - CURRENT FUND
YEAR 2012
YEAR 2011
AMOUNT
%
AMOUNT
%
REVENUE AND OTHER INCOME REALIZED
Fund Balance Utilized
$
124,084.67
5.37% $
83,444.00
3.74%
Miscellaneous-From Other Than Local Property
Tax Levies
228,895.09
9.91%
190,409.87
8.53%
Collection of Delinquent Taxes and Tax Title Liens
25,537.85
1.11%
129,940.58
5.82%
Collection of Current Tax Levy
1,930,080.20
83.60%
1,828,388.06
81.91%
TOTAL INCOME
$
2,308,597.81
100.00% $
2,232,182.51
100.00%
EXPENDITURES
Budget Expenditures:
Municipal Purposes
$
476,173.88
22.46% $
510,075.16
24.83%
County Taxes
327,594.90
15.45%
322,523.76
15.70%
School Taxes
1,292,778.89
60.98%
1,217,740.61
59.27%
Other
23,319.22
1.10%
4,148.72
0.20%
TOTAL EXPENDITURES
$
2,119,866.89
100.00% $
2,054,488.25
100.00%
Excess in Revenue
$
188,730.92
$
177,694.26
Adjustments to Income Before Fund Balance:
Expenditures Included Above Which are by Statute
Deferred Charges to Budget of Succeeding Year
30,615.93
Statutory Excess of Fund Balance
$
188,730.92
$
208,310.19
Fund Balance, January 1
272,645.47
147,779.28
$
461,376.39
$
356,089.47
Less Utilization as Anticipated Revenue
124,084.67
83,444.00
Fund Balance, December 31
$
337,291.72
$
272,645.47
26
COMPARATIVE STATEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE-WATER UTILITY FUND
YEAR 2012
YEAR 2011
AMOUNT
%
AMOUNT
%
REVENUE AND OTHER INCOME REALIZED
Collection of Water Rents
$
83,281.41
79.85% $
109,791.39
82.71%
Miscellaneous-From Other Than Water Rents
21,019.60
20.16%
22,946.89
17.30%
TOTAL INCOME
$
104,301.01
100.00% $
132,738.28
100.00%
EXPENDITURES
Budget Expenditures:
Operating
$
72,300.00
91.52% $
72,300.00
91.52%
Deferred Charges and Statutory Expenditures
1,700.00
2.15%
1,700.00
2.15%
Capital Improvements
5,000.00
6.33%
5,000.00
6.33%
TOTAL EXPENDITURES
$
79,000.00
100.00% $
79,000.00
100.00%
Excess in Revenue to Fund Balance
$
25,301.01
$
53,738.28
Fund Balance, January 1
88,252.06
34,513.78
Fund Balance, December 31
$
113,553.07
$
88,252.06
27
COMPARATIVE STATEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE-SEWER UTILITY FUND
YEAR 2012
YEAR 2011
AMOUNT
%
AMOUNT
%
REVENUE AND OTHER INCOME REALIZED
Collection of Sewer Rents
$
297,249.27
95.35% $
300,198.36
93.41%
Miscellaneous - From Other Than Sewer Rents
14,503.01
4.65%
21,170.61
6.59%
TOTAL INCOME
$
311,752.28
100.00% $
321,368.97
100.00%
EXPENDITURES
Budget Expenditures:
Operating
$
149,782.00
49.49% $
150,504.00
52.70%
Deferred Charges and Statutory Expenditures
1,950.00
0.64%
1,950.00
0.68%
Debt Service
91,168.54
30.13%
98,215.65
34.39%
Capital Improvements
27,022.00
8.93%
27,022.00
9.46%
Other
32,704.61
10.81%
7,891.09
2.76%
TOTAL EXPENDITURES
$
302,627.15
100.00% $
285,582.74
100.00%
Excess Revenue
$
9,125.13
$
35,786.23
Fund Balance, January 1
148,654.75
112,868.52
Fund Balance, December 31
$
157,779.88
$
148,654.75
28
COMPARATIVE SCHEDULE OF TAX RATE INFORMATION
Tax Rate
Appointment of Tax Rate:
Municipal
County
County Open Space
County Library
District School
Regional School
Assessed Valuations:
2012
2011
2010
$
2012
$2.075
$0.351
0.290
0.030
0.029
0.707
0.668
94,024,961.00
$
94,178,900.00
2011
$1.968
$0.334
0.288
0.031
0.025
0.687
0.603
$
94,924,293.00
COMPARISON OF TAX LEVIES AND COLLECTION CURRENTLY
2010
$1.863
$0.338
0.289
0.030
0.025
0.676
0.505
A study of this tabulation could indicate a possible trend in future tax levies. A decrease
in the percentage of current collection could be an indication of a probable increase in future tax
levies.
Currently
Cash
Percentage of
Year
Tax Levy
Collections
Collection
2012
$
1,954,037.87
$
1,930,080.20
98.77%
2011
1,855,975.61
1,828,388.06
98.51%
2010
1,768,439.55
1,630,382.47
92.19%
29
DELINQUENT TAXES AND TAX TITLE LIENS
This tabulation includes a comparison expressed in percentage of the total delinquent
taxes, in relation to the tax levies of the last three years:
AMOUNT OF
DELINQUENT
TOTAL
PERCENTAGE
YEAR
TAXES
DELINQUENT
OF TAX LEVY
2012
$15,780.04
$15,780.04
0.81%
2011
$25,543.30
$25,543.30
1.38%
2010
$129,940.58
$129,940.58
7.35%
PROPERTY ACQUIRED BY TAX TITLE LIEN LIQUIDATION
The Borough has no property acquired by foreclosure or deed as a result of liquidation of
outstanding tax title liens.
COMPARISON OF WATER UTILITY LEVIES
CASH
YEAR
LEVY
COLLECTIONS
2012
$
81,637.04
$
83,281.41
2011
108,815.66
110,122.42
2010
79,901.66
79,602.58
COMPARISON OF SEWER UTILITY LEVIES
CASH
YEAR
LEVY
COLLECTIONS
2012
$
282,425.22
$
297,249.27
2011
301,532.66
300,108.00
2010
273,579.34
286,749.80
30
COMPARATIVE SCHEDULE OF FUND BALANCES
UTILIZED
BALANCE
IN BUDGET OF
YEAR
DECEMBER 31
SUCCEEDING YEAR
2012
$
337,291.72
$
163,000.00
2011
272,645.47
124,084.67
Current Fund
2010
147,779.28
83,444.00
2009
119,782.55
81,444.00
2008
37,289.77
-0-
2012
$
113,553.07
$
-0-
2011
88,252.06
-0-
Water Utility Operating Fund
2010
34,513.78
-0-
2009
27,873.71
-0-
2008
5,180.44
-0-
2012
$
157,779.88
$
-0-
2011
148,654.75
-0-
Sewer Utility Operating Fund
2010
112,868.52
-0-
2009
13,670.82
-0-
2008
11,394.87
-0-
31
OFFICIALS IN OFFICE AND SURETY BONDS
The following officials were in office during the period under audit:
NAME
TITLE
Stephen Giocondo
Mayor
Michael Hagerty
Council President
Nic Messina
Councilman
Aaron Lipsen
Councilman
Neal Esposito
Councilman
Timothy Nemeth
Councilman
Kate Steffanelli
Councilwoman
Donna Griffiths
Tax Collector, Deputy Clerk
Michele Hovan
Borough Clerk
Judie McGrorey
CFO
John Bennett
Counsel
Michelle Trivigno
Assessor
Edward Martin
Magistrate
Cindy Hooven
Court Administrator
All bonds were examined and were properly executed.
AMOUNT
OF BOND
$75,000.00
$75,000.00
NAME OF SURETY
Selective Insurance Company
Selective Insurance Company
The Borough does not maintain blanket bond coverage for individuals not specifically covered by a separate bond.
32
GENERAL COMMENTS AND RECOMMENDATIONS
GENERAL COMMENTS
CONTRACTS AND AGREEMENTS REQUIRED TO BE ADVERTISED FOR (N.J.S.A. 40A:11-4)
Every contract or agreement for the performance of any work or the furnishing or hiring of
any materials or supplies, the cost or the contract price whereof is to be paid with or out of public
funds, not included within the terms of Section 3 of this act, shall be made or awarded only by
the governing body of the contracting unit after public advertising for bids and bidding therefor,
except as is provided otherwise in this act or specifically by any other law. No work, materials or
supplies shall be undertaken, acquired or furnished for a sum exceeding in the aggregate the
amount set forth in or the amount calculated by the Governor pursuant to Section 3 of P.L. 1971
c.198 (C.40A: 11-3), except by contract or agreement.
Effective January 1, 2011, the bid threshold in accordance with N.J.S.A. 40A: 11-4 is
$17,500.00. In accordance with N.J.S.A. 40A:11-3 and authorized by a resolution dated October
30, 2006 of the governing body, the bid threshold for all purchases made by the Borough's
qualified purchasing agent is $29,000.00.
The governing body of the Municipality has the responsibility of determining whether the
expenditures in any category will exceed $29,000.00 within the fiscal year.
Where question
arises as to whether any contract or agreement might result in violation of the statute, the
Solicitor's opinion should be sought before a commitment is made.
The minutes indicate that bid were requested by public advertising for the following items:
Old Prallsville Road Improvements
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 audit of expenditures did not reveal any individual payments, contracts or agreements in
excess of $29,000.00 "for the performance of any work or the furnishing or hiring of any materials
or supplies, other than those where bids had been previously sought by public advertisement or
where a resolution had been previously adopted under the provisions of N.J.S.A. 40A: 11-6".
The minutes indicate that resolution authorizing contracts or agreements for "Professional
Services" per N.J.S.A. 40A: 11-5 was advertised during 2012 for the following professional
services:
Borough Auditor
Borough Engineer
Borough Attorney
Planning Board Attorney
Bond Counsel
33
COLLECTION OF INTEREST ON DELINQUENT TAXES AND ASSESSMENTS
The statute provides the method for authorizing interest and the maximum rate to be
charged for the non-payment of taxes or assessments on or before the date when they would
become delinquent.
The governing body on January 3, 2012 adopted the following resolution authorizing
interest to be charged on delinquent taxes.
WHEREAS, N.J.S.A. 54:4-67 permits the governing body of each municipality to fix the
rate of interest to be charged for non-payment of taxes or assessments subject to any
abatement or discount for the late payment of taxes as provided by law; and
WHEREAS, N.J.S.A. 54:4-67 has been amended to permit the fixing of said rate of 8%
per annum on the first $1,500.00 of delinquency and 18% per annum on any amount in excess
of $1,500.00 and allows an additional penalty of 6% be collected against a delinquency in
excess of $10,000.00 on properties that fail to pay the delinquency prior to the end of the
calendar year.
1.
The Tax Collector and Water and Sewer Clerk are hereby authorized and
directed to charge 8% per annum on the first $1,500.00 of delinquency
after the due date and 18% per annum on any delinquencies in excess of
$1,500.00 becoming delinquent after the due date and if a delinquency is
in excess of $10,000.00 and remains in arrears beyond December 31 an
additional penalty of 6% shall be charged against the delinquency.
2.
BE IT FURTHER RESOLVED that these interest rates be effective for the
year 2012.
It appears from an examination of the records that interest was collected in accordance
with the forgoing resolution.
DELINQUENT TAXES AND TAX TITLE LIENS
No tax sale was held in 2012.
The following comparison is made of the number of tax title liens receivable on
December 31 st of the last three years:
NUMBER OF LIENS
2012
None
2011
None
2010
None
It is essential to good management that all means provided by statute be utilized to
liquidate tax title liens in order to get such properties back on a tax paying basis.
34
CONFIRMATION OF DELINQUENT TAXES AND OTHER CHARGES
A confirmation of delinquent charges and current payments was made in accordance
with the regulations of the Division of Local Government Services consisting of verification
notices as follows:
Delinquent Tax Positive Confirmations
Delinquent Utility Rent Positive Confirmation
Information Tax Current Positive Confirmation
Information Utility Rent Current Positive Confirmation
OTHER COMMENTS
Interfunds
NUMBER MAILED
10
10
10
10
Transactions invariably occur in one fund which requires a corresponding entry to be
made in another fund, thus creating interfund balances.
References to the various balance
sheets show the interfund balances remaining at year end.
As a general rule all interfund
balances should be closed out as of the end of the year.
It is the Borough's policy to review and liquidate all interfund balances on a periodic
basis.
OTHER
Fixed Assets
The General Fixed Assets Ledger has not been updated since 2006.
Treasurer
The budgets for the Current Fund, Water Operating Fund and Sewer Operating Fund
were incorrectly entered into the client's financial accounting system. The entry to reverse the
temporary budget was not made when the adopted budget was set up.
As a result, the
unexpended funds available in these budget appropriations were overstated. The client then
used these overstated balances to make budget transfers in December 2012. The resulting
transfers were disallowed as sufficient balances did not exist at the time they were made.
35
RECOMMENDATIONS
*That the Fixed Assets Ledger be updated for all additions and deletions.
That due care be taken in entering the adopted budget.
*Prior Year Recommendations
36
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