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Executive Summary
The Borough of Stockton's audit report for the year ended December 31, 2015, presents the financial statements on a regulatory basis as prescribed by the New Jersey Division of Local Government Services. This basis differs from generally accepted accounting principles (GAAP) and focuses on compliance with legal provisions and budgetary restrictions. The report includes financial statements for the Current Fund, Trust Fund, General Capital Fund, Water Utility Fund, and Sewer Utility Fund. A key deviation from GAAP is the omission of a Statement of General Fixed Assets. The independent auditor's report expresses an adverse opinion on the financial statements' fairness in accordance with GAAP due to the noted variances in accounting principles.
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Document Text
--- Document: 2015 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, 2015
BOROUGH OF STOCKTON
I N D E X
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, 2015
"A-1"
Statement of Revenues - Regulatory Basis for the Year Ended December 31, 2015
"A-2"
Statement of Expenditures - Regulatory Basis for the Year Ended December 31, 2015
"A-3"
Trust Fund:
Balance Sheets - Regulatory Basis
"B"
General Capital Fund:
Balance Sheets - Regulatory Basis
"C"
Statement of Fund Balance - Regulatory Basis
“C-1”
Water Utility Fund:
Balance Sheets - Regulatory Basis
"D"
Statements of Operations and Change in Fund Balance - Operating Fund - Regulatory
Basis for the Year Ended December 31, 2015
"D-1"
Statement of Revenues - Operating Fund - Regulatory Basis for the Year Ended
December 31, 2015
"D-2"
Statement of Expenditures - Operating Fund - Regulatory Basis for the Year Ended
December 31, 2015
“D-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, 2015
"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, 2015
“E-3"
Statement of Expenditures - Operating Fund - Regulatory Basis for the Year Ended
December 31, 2015
“E-4"
PAGES
Notes to Financial Statements
4-30
BOROUGH OF STOCKTON
I N D E X (CONTINUED)
EXHIBITS
Supplementary Schedules - All Funds
Current Fund:
Schedule of Cash-Treasurer
"A-4"
Schedule of Cash-Collector
"A-5"
Schedule of Due Current Fund - Grant Fund
"A-6"
Schedule of Taxes Receivable and Analysis of Property Tax Levy
"A-7"
Schedule of Due State of New Jersey Per Chapter 20, P.L. 1971
"A-8"
Schedule of Revenue Accounts Receivable
"A-9"
Schedule of Interfunds
"A-10"
Schedule of Reserve for Grants Unappropriated - Grant Fund
"A-11"
Schedule of 2014 Appropriation Reserves
"A-12"
Schedule of County Taxes Payable
"A-13"
Schedule of Regional High School Tax
"A-14"
Schedule of Reserve for Grants-Unappropriated
"A-15"
Schedule of Prepaid Taxes
"A-16"
Schedule of Tax Overpayments
"A-17"
Schedule of Grants Receivable - Grant Fund
"A-18"
Schedule of Reserve for Grants Appropriated - Grant Fund
"A-19"
Schedule of Encumbrances Payable
"A-20"
Trust Fund:
Schedule of Cash-Treasurer
"B-1"
Schedule of Reserve for Animal Control Trust Fund Expenditures
"B-2"
Schedule of Due State of New Jersey - Animal Control Fund
"B-3"
Schedule of Various Reserves and Deposits
"B-4"
Schedule of Due Current Fund
"B-5"
General Capital Fund:
Schedule of Cash-Treasurer
"C-2"
Analysis of Cash
"C-3"
Schedule of Reserve for Miscellaneous Deposits
“C-4"
Schedule of Deferred Charges to Future Taxation-Unfunded
"C-5"
Schedule of Grants Receivable
"C-6"
Schedule of Improvement Authorizations
"C-7"
Schedule of Bond Anticipation Notes
"C-8"
Schedule of Capital Improvement Fund
“C-9"
Schedule of Interfunds
“C-10"
Schedule of Deferred Charges to Future Taxation Funded
“C-11”
Schedule of Green Trust Loans Payable
“C-12”
Schedule of New Jersey Environmental Infrastructure Trust Loans Payable
“C-13”
Schedule of Contracts Payable
“C-14”
Schedule of Bonds and Notes Authorized But Not Issued
“C-15”
BOROUGH OF STOCKTON
I N D E X (CONTINUED)
EXHIBITS
Water Utility Fund:
Schedule of Cash-Treasurer for the Year Ended December 31, 2015
"D-4"
Schedule of Encumbrances Payable - Operating Fund
"D-5"
Schedule of Consumer Accounts Receivable - Operating Fund
“D-6"
Schedule of Accrued Interest on Bonds, Notes and Loans - Operating Fund
"D-7"
Schedule of 2014 Appropriation Reserves - Operating Fund
"D-8"
Schedule of Interfunds - Operating Fund
"D-9"
Schedule of Improvement Authorizations - Capital Fund
"D-10"
Schedule of Reserve for Deferred Amortization - Capital Fund
"D-11"
Schedule of Capital Improvement Fund - Capital Fund
"D-12"
Schedule of Reserve for Amortization - Capital Fund
"D-13”
Schedule of Fixed Capital - Capital Fund
"D-14"
Schedule of Fixed Capital Authorized and Uncompleted - Capital Fund
“D-15"
Schedule of Interfunds - Capital Fund
"D-16"
Schedule of Bond Anticipation Notes - Capital Fund
“D-17”
Schedule of Reserve for Miscellaneous Deposits - Capital Outlay - Capital Fund
“D-18”
Schedule of Bonds and Notes Authorized But Not Issued - Capital Fund
“D-19”
Schedule of Contracts Payable - Capital Fund
“D-20”
Sewer Utility Fund:
Schedule of Cash-Treasurer for the Year Ended December 31, 2015
"E-5"
Schedule of Accrued Interest - Operating Fund
"E-6"
Schedule of Consumer Accounts Receivable - Operating Fund
"E-7"
Schedule of Interfunds - Operating Fund
“E-8”
Schedule of Encumbrances Payable - Operating Fund
“E-9”
Schedule of 2014 Appropriation Reserves - Operating Fund
"E-10"
Schedule of New Jersey Environmental Infrastructure Loan Receivable - Capital Fund
“E-11”
Schedule of Capital Improvement Fund - Capital Fund
“E-12"
Schedule of Fixed Capital Authorized and Uncompleted - Capital Fund
“E-13"
Schedule of Interfunds - Capital Fund
“E-14"
Schedule of Improvement Authorizations - Capital Fund
“E-15"
Schedule of Fixed Capital - Capital Fund
“E-16"
Schedule of Reserve for Amortization - Capital Fund
"E-17"
Schedule of Reserve for Deferred Amortization - Capital Fund
"E-18"
Schedule of Reserve for Capital Improvement - Capital Fund
"E-19"
Schedule of Bonds Payable - Capital Fund
"E-20"
Schedule of Bonds and Notes Authorized But Not Issued - Capital Fund
“E-21”
BOROUGH OF STOCKTON
I N D E X (CONTINUED)
PAGES
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
31-32
Schedule of Expenditures of Federal Awards - Year Ended December 31, 2015
33
Schedule of Expenditures of State Financial Assistance - Year Ended
December 31, 2015
34
Notes to the Schedule of Expenditures of Federal Awards and State Financial
Assistance - Year Ended December 31, 2015
35-36
PART III
Statistical Data
37-42
Officials in Office and Surety Bonds
43
General Comments and Recommendations
44-47
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, 2015 AND 2014
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, 2015 and 2014, 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, 2015, 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.
SCC
SUPLEE, CLOONEY & COMPANY
C E R T I F I E D P U B L I C A C C O U N T A N T S
308 East Broad Street, Westfield, New Jersey 07090-2122
Telephone 908-789-9300
Fax 908-789-8535
E-mail info@scnco.com
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 Borough of Stockton’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 Borough of Stockton’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, 2015 and
2014, 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, 2015.
Basis for Qualified Opinion on Regulatory Basis of Accounting
A Statement of General Fixed Assets was omitted from the Borough’s regulatory
financial statements because the amounts to be reported in the statements are not presently
known.
2
3
CURRENT FUND
"A"
SHEET #1
BOROUGH OF STOCKTON
CURRENT FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
REF.
31, 2015
31, 2014
ASSETS
Cash-Treasurer
A-4
$
673,638.97
$
433,596.71
Petty Cash
225.00
225.00
Due State of New Jersey-Chapter 20, PL 1971
A-8
2,779.76
$
673,863.97
$
436,601.47
Receivables and other Assets with Full Reserves:
Delinquent Property Taxes Receivable
A-7
$
35,028.36
$
19,324.45
Revenue Accounts Receivable
A-9
750.81
246.29
Interfunds Receivable
A-10
5,175.93
4,238.79
Prepaid Regional High School Taxes
A-14
1,003.17
A
$
40,955.10
$
24,812.70
$
714,819.07
$
461,414.17
Grant Fund:
Due Current Fund
A-21
$
21,683.05
$
17,683.05
$
21,683.05
$
17,683.05
$
736,502.12
$
479,097.22
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, 2015
31, 2014
LIABILITIES, RESERVES AND FUND BALANCE
Liabilities:
Appropriation Reserves
A-3:A-12
$
56,673.57
$
60,532.22
Encumbrances Payable
A-20
7,409.49
14,003.61
Prepaid Taxes
A-16
2,366.49
11,089.78
Tax Overpayments
A-17
21,024.07
17,042.27
Due State of New Jersey-Chapter 20, PL 1971
A-8
250.00
Interfunds Payable
A-10
29,862.31
19,754.95
Reserve for Grants - Unappropriated
A-15
12,300.00
6,150.00
County Taxes-Payable
A-13
412.28
Local District School Tax Payable
A-15
186,395.83
$
316,694.04
$
128,572.83
Reserve for Receivables and other Assets
A
40,955.10
24,812.70
Fund Balance
A-1
357,169.93
308,028.64
$
714,819.07
$
461,414.17
Grant Fund:
Reserve for Grants Appropriated
A-19
$
17,683.05
$
13,104.09
Reserve for Grants Unappropriated
A-11
4,000.00
4,578.96
$
21,683.05
$
17,683.05
$
736,502.12
$
479,097.22
The accompanying Notes to the Financial Statements are an integral part of this statement.
"A-1"
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENTS OF OPERATIONS
AND CHANGE IN FUND BALANCE - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2015
REF.
YEAR 2015
YEAR 2014
REVENUE AND OTHER INCOME
Fund Balance Utilized
A-1:A-2
$
163,000.00
$
163,000.00
Miscellaneous Revenue Anticipated
A-2
154,390.42
140,558.92
Receipts from Delinquent Taxes
A-2
19,324.45
26,909.25
Receipts from Current Taxes
A-2
1,884,348.50
1,899,113.44
Non-Budget Revenue
A-2
50,371.33
11,298.84
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
A-12
54,119.65
28,006.24
Tax Overpayments Canceled
A-17
5.12
11.52
Reserve for Prepaid Regional High School Tax
1,003.17
Interfunds Returned
6,671.86
Total Income
$
2,326,562.64
$
2,275,570.07
EXPENDITURES
Budget Appropriations:
Operations within "CAPS":
Operating
A-3
$
415,464.00
$
375,975.75
Deferred Charges and Statutory Expenditures
A-3
21,932.00
28,467.92
Operations Excluded from "CAPS":
Operating
A-3
10,828.96
35,766.27
Capital Improvements
A-3
53,000.00
38,000.00
Municipal Debt Service
A-3
60,215.24
57,080.41
Senior and Veteran Deduction Canceled
A-8
2,779.76
County Taxes
A-13
342,309.97
335,638.57
County Share of Added Taxes
A-13
412.28
Regional High School Tax
A-14
1,206,017.00
1,233,198.00
Refund of Prior Year Revenue
A-4
525.00
375.00
Reserve for Prepaid Regional High School Tax
1,003.17
Interfunds Advanced
937.14
Total Expenditures
$
2,114,421.35
$
2,105,505.09
Excess in Revenue
$
212,141.29
$
170,064.98
Fund Balance
Balance, January 1
A
308,028.64
300,963.66
$
520,169.93
$
471,028.64
Decreased by:
Utilization as Anticipated Revenue
A-1:A-2
163,000.00
163,000.00
Fund Balance, December 31
A
$
357,169.93
$
308,028.64
The accompanying Notes to the Financial Statements are an integral part of this statement.
"A-2"
SHEET #1
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2015
SPECIAL
EXCESS
N.J.S.
OR
REF.
BUDGET
40A:4-87
REALIZED
(DEFICIT)
Fund Balance Anticipated
A-1
$
163,000.00
$
$
163,000.00
$
Miscellaneous Revenues:
Licenses:
Alcoholic Beverages
A-9
$
3,824.00
$
$
3,824.00
$
Fines:
Municipal Court
A-9
1,300.00
3,418.98
2,118.98
Interest and Costs on Taxes
A-9
4,200.00
4,734.69
534.69
Consolidated Municipal Property Tax Relief Act
A-9
597.00
597.00
Energy Receipts Tax
A-9
44,974.00
44,974.00
Cell Tower Rental
A-9
25,500.00
34,300.28
8,800.28
Capital Surplus
A-9
25,000.00
25,000.00
Hotel and Motel Tax
A-9
21,461.55
22,727.28
1,265.73
Reserve to Pay Debt
A-9
10,235.23
10,235.23
Recycling Tonnage Grant
A-18
578.96
578.96
Clean Communities Program
A-18
4,000.00
4,000.00
A-1
$
141,670.74
$
$
154,390.42
$
12,719.68
Receipts from Delinquent Taxes
A-7
10,000.00
19,324.45
9,324.45
Amount to be Raised by Taxation for Support
of Municipal Budget:
Local Tax for Municipal Purposes
A-2:A-7
374,166.14
460,609.25
86,443.11
Budget Totals
$
688,836.88
$
$
797,324.12
$
108,487.24
Non-Budget Revenue
A-1:A-2
50,371.33
50,371.33
$
688,836.88
$
$
847,695.45
$
158,858.57
REF.
A-3
A-3
The accompanying Notes to the Financial Statements are an integral part of this statement.
ANTICIPATED
"A-2"
SHEET #2
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2015
REF.
Allocation of Current Tax Collections:
Collections Realized on a Cash Basis
A-1:A-7
$
1,884,348.50
Allocated to:
School and County Taxes
1,548,739.25
Balance for Support of Municipal Budget Appropriations
335,609.25
Add: Appropriation-"Reserve for Uncollected Taxes"
A-3
125,000.00
Amount for Support of Municipal Budget Appropriations
A-2
$
460,609.25
Analysis of Non-Budget Revenues
Miscellaneous Revenue Not Anticipated:
Treasurer:
Borough Clerk
$
3,340.00
Interest on Investments
200.60
Cable Franchise Fee
2,315.09
Excess Animal Control Fees
937.14
Miscellaneous
43,453.50
Administrative Fee - Senior Citizen and Veterans
125.00
A-4
$
50,371.33
A-2
$
50,371.33
The accompanying Notes to the Financial Statements are an integral part of this statement.
"A-3"
SHEET #1
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2015
APPROPRIATIONS
BUDGET AFTER
PAID OR
BUDGET
MODIFICATION
CHARGED
RESERVED
CANCELED
OPERATIONS WITHIN "CAPS"
GENERAL GOVERNMENT
Governing Body:
Salaries and Wages
$
9,520.00 $
9,520.00 $
9,408.52 $
111.48 $
Other Expenses
1,200.00
800.00
725.49
74.51
Municipal Clerk (Admin and Executive):
Salaries and Wages
42,750.00
42,750.00
42,707.06
42.94
Other Expenses
3,500.00
3,600.00
3,568.54
31.46
Elections:
Other Expenses
800.00
800.00
315.09
484.91
Financial Administration:
Salaries and Wages
17,000.00
17,000.00
17,000.00
Other Expenses
1,500.00
1,500.00
752.97
747.03
Computer Support
8,000.00
8,500.00
8,202.57
297.43
Administration:
Salaries and Wages
5,900.00
5,900.00
5,854.80
45.20
Audit Services
18,250.00
18,250.00
17,875.00
375.00
Tax Assessment Administration:
Salaries and Wages
5,660.00
5,660.00
5,658.48
1.52
Other Expenses
550.00
550.00
206.64
343.36
Revenue Administration:
Salaries and Wages
8,160.00
8,160.00
8,158.08
1.92
Other Expenses
1,375.00
1,375.00
919.40
455.60
Legal Services:
Other Expenses
7,000.00
7,000.00
3,037.88
3,962.12
Engineering Services:
Other Expenses
17,500.00
17,500.00
17,255.52
244.48
Municipal Land Use Law (NJSA 40:550-1)
Planning Board:
Salaries and Wages
3,140.00
3,140.00
3,136.51
3.49
Other Expenses
1,500.00
1,500.00
61.66
1,438.34
Legal Fees
1,500.00
1,500.00
978.25
521.75
Planner Fees
750.00
750.00
224.90
525.10
Engineering Fees
500.00
500.00
500.00
Zoning Board:
Salaries and Wages
5,000.00
5,000.00
4,999.95
0.05
Insurance (NJSA 40A:4-45.3(00)):
Liability Insurance
19,660.00
19,660.00
12,643.37
7,016.63
Worker Compensation Insurance
23,000.00
23,000.00
22,641.00
359.00
Flood Insurance
3,823.00
3,823.00
3,823.00
Employee Bonds
1,100.00
1,100.00
984.00
116.00
PUBLIC SAFETY
Police:
Salaries and Wages
4,970.00
4,970.00
4,969.87
0.13
Other Expenses
150.00
150.00
60.00
90.00
Aid to Volunteer Fire Company
17,000.00
17,000.00
17,000.00
Municipal Prosecutor:
Salaries and Wages
1,866.00
1,866.00
1,865.44
0.56
The accompanying Notes to the Financial Statements are an integral part of this statement.
"A-3"
SHEET #2
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2015
APPROPRIATIONS
BUDGET AFTER
PAID OR
BUDGET
MODIFICATION
CHARGED
RESERVED
CANCELLED
PUBLIC WORKS
Street and Road Maintenance:
Other Expenses
$
16,500.00 $
14,350.00 $
10,207.00 $
4,143.00 $
Snow Removal:
Other Expenses
25,000.00
25,000.00
14,800.00
10,200.00
Solid Waste Collection:
Other Expenses
70,000.00
70,000.00
61,977.38
8,022.62
Building and Grounds:
Other Expenses
11,000.00
12,500.00
12,371.00
129.00
Recycling:
Other Expenses
13,500.00
13,500.00
9,691.82
3,808.18
Environmental Commission:
Other Expenses
350.00
HEALTH AND HUMAN SERVICES
Board of Health:
Other Expenses
1,200.00
1,200.00
800.00
400.00
Animal Control Services:
Salaries and Wages
835.00
835.00
833.20
1.80
Other Expenses
500.00
PARKS AND RECREATION
Recreation:
Other Expenses
8,000.00
9,500.00
9,479.45
20.55
MUNICIPAL COURT
Municipal Court:
Salaries and Wages
7,395.00
7,395.00
7,390.36
4.64
Other Expenses
3,800.00
4,100.00
4,100.00
Public Defender (P.L. 1997, c.256):
Other Expenses
200.00
STATE UNIFORM CONSTRUCTION CODE
(N.J.S.A.52:270-120 ET.SEQ.)
Township of Delaware Building Inspector:
Salaries and Wages
1,960.00
1,960.00
1,959.16
0.84
Other Expenses
300.00
UNCLASSIFIED
Electricity
100.00
100.00
99.71
0.29
Street Lighting
13,000.00
13,000.00
11,907.04
1,092.96
Telephone
7,000.00
7,000.00
2,004.72
4,995.28
Natural Gas
2,200.00
2,200.00
1,220.07
979.93
TOTAL OPERATIONS WITHIN "CAPS"
$
415,464.00 $
415,464.00 $
363,874.90 $
51,589.10 $
The accompanying Notes to the Financial Statements are an integral part of this statement.
"A-3"
SHEET #3
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2015
APPROPRIATIONS
BUDGET AFTER
PAID OR
BUDGET
MODIFICATION
CHARGED
RESERVED
CANCELLED
DEFERRED CHARGES AND STATUTORY EXPENDITURES-
MUNICIPAL WITHIN "CAPS"
Statutory Expenditures:
Contribution to:
Public Employee's Retirement System
$
12,482.00 $
12,482.00 $
12,482.00 $
$
Social Security System
8,950.00
8,950.00
8,716.43
233.57
Unemployment Insurance
500.00
500.00
500.00
TOTAL DEFERRED CHARGES AND STATUTORY
EXPENDITURES-MUNICIPAL WITHIN "CAPS"
$
21,932.00 $
21,932.00 $
21,198.43 $
733.57 $
TOTAL GENERAL APPROPRIATIONS FOR MUNICIPAL
PURPOSES WITHIN "CAPS"
$
437,396.00 $
437,396.00 $
385,073.33 $
52,322.67 $
OPERATIONS EXCLUDED FROM "CAPS"
Length of Service Award Program
$
4,750.00 $
4,750.00 $
4,750.00 $
$
Council on Affordable Housing
1,500.00
1,500.00
149.10
1,350.90
TOTAL OTHER OPERATIONS - EXCLUDED FROM "CAPS"
$
6,250.00 $
6,250.00 $
4,899.10 $
1,350.90 $
STATE AND FEDERAL PROGRAMS OFF-SET BY REVENUES
Clean Communities Program
$
4,000.00 $
4,000.00 $
4,000.00 $
$
Recycling Tonnage Grant
578.96
578.96
578.96
TOTAL PUBLIC AND PRIVATE PROGRAMS
$
4,578.96 $
4,578.96 $
4,578.96 $
$
TOTAL OPERATIONS - EXCLUDED FROM "CAPS"
$
10,828.96 $
10,828.96 $
9,478.06 $
1,350.90 $
CAPITAL IMPROVEMENTS-EXCLUDED FROM "CAPS"
Capital Improvement Fund
$
50,000.00 $
50,000.00 $
50,000.00 $
$
Capital Improvement Fund - Lambertville Sewerage Authority
3,000.00
3,000.00
3,000.00
TOTAL CAPITAL IMPROVEMENTS EXCLUDED FROM "CAPS"
$
53,000.00 $
53,000.00 $
50,000.00 $
3,000.00 $
MUNICIPAL DEBT SERVICE-EXCLUDED FROM "CAPS"
Interest on Notes
$
2,030.10 $
2,030.10 $
2,024.41 $
$
5.69
Payment of Bond Anticipation Notes and Capital Notes
8,205.13
8,205.13
8,205.13
Loan Repayments for Principal and Interest-Green Trust
12,436.64
12,436.64
12,436.64
Loan Repayments for Principal and Interest-NJ Environmental
39,940.05
39,940.05
37,549.06
2,390.99
TOTAL MUNICIPAL DEBT SERVICE-EXCLUDED FROM "CAPS" $
62,611.92 $
62,611.92 $
60,215.24 $
$
2,396.68
The accompanying Notes to the Financial Statements are an integral part of this statement.
"A-3"
SHEET #4
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2015
APPROPRIATIONS
BUDGET AFTER
PAID OR
BUDGET
MODIFICATION
CHARGED
RESERVED
CANCELLED
TOTAL GENERAL APPROPRIATIONS FOR MUNICIPAL
PURPOSES EXCLUDED FROM "CAPS"
$
126,440.88 $
126,440.88 $
119,693.30 $
4,350.90 $
2,396.68
SUB-TOTAL GENERAL APPROPRIATIONS
$
563,836.88 $
563,836.88 $
504,766.63 $
56,673.57 $
2,396.68
RESERVE FOR UNCOLLECTED TAXES
125,000.00
125,000.00
125,000.00
TOTAL GENERAL APPROPRIATIONS
$
688,836.88 $
688,836.88 $
629,766.63 $
56,673.57 $
2,396.68
REF.
A-2
A-1
A:A-1
Encumbrances Payable
A-20
$
7,409.49
Reserve for Uncollected Taxes
A-2
125,000.00
Reserve for Grants Appropriated
A-19
4,578.96
Cash Disbursements
A-4
492,778.18
$
629,766.63
The accompanying Notes to the Financial Statements are an integral part of this statement.
TRUST FUND
"B"
BOROUGH OF STOCKTON
TRUST FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
REF.
31, 2015
31, 2014
ASSETS
Animal Control Trust Fund:
Cash
B-1
$
3,006.64
$
2,571.30
Other Funds:
Cash
B-1
23,985.65
26,747.11
$
26,992.29
$
29,318.41
LIABILITIES, RESERVES AND FUND BALANCES
Animal Control Trust Fund:
Due Current Fund
B-5
$
937.14
$
Due State of New Jersey
B-3
44.60
44.60
Reserve for Animal Control Fund Expenditures
B-2
2,024.90
2,526.70
3,006.64
2,571.30
Other Funds:
Due Current Fund
B-5
$
4,235.19
$
4,235.19
Reserve For:
Various Reserves and Deposits
B-4
19,750.46
22,511.92
23,985.65
26,747.11
$
26,992.29
$
29,318.41
The accompanying Notes to the Financial Statements are an integral part of this statement.
GENERAL CAPITAL FUND
"C"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
REF.
31, 2015
31, 2014
ASSETS
Cash
C-2
$
246,628.96
$
252,941.23
Deferred Charges to Future Taxation - Funded
C-11
394,675.66
435,245.13
Deferred Charges to Future Taxation - Unfunded
C-5
548,111.80
556,317.80
Interfunds Receivable
C-10
8,179.26
2,071.90
Grants Receivable
C-6
13,536.67
13,536.67
$
1,211,132.35
$
1,260,112.73
LIABILITIES, RESERVES AND FUND BALANCE
Bond Anticipation Notes
C-8
$
183,313.00
$
191,519.00
Contracts Payable
C-14
10,000.00
10,000.00
Interfunds Payable
C-10
11,226.10
Green Acres Loan Payable
C-12
107,116.80
117,258.72
N.J. Environmental Trust Loans Payable
C-13
287,558.86
317,986.41
Improvement Authorizations:
Funded
C-7
21,683.06
Unfunded
C-7
312,862.16
314,012.16
Capital Improvement Fund
C-9
190,007.95
166,007.95
Reserve for:
Miscellaneous Reserves
C-4
41,323.51
49,835.38
Fund Balance
C-1
57,267.01
82,267.01
$
1,211,132.35
$
1,260,112.73
The accompanying Notes to the Financial Statements are an integral part of this statement.
"C-1"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
STATEMENT OF FUND BALANCE - REGULATORY BASIS
REF.
Balance, December 31, 2014
C
$
82,267.01
Decreased by:
Payment to Current Fund as
Anticipated Revenue
C-2
25,000.00
Balance, December 31, 2015
C
$
57,267.01
The accompanying Notes to the Financial Statements are an integral part of this statement.
THIS PAGE INTENTIONALLY LEFT BLANK
WATER UTILITY FUND
"D"
BOROUGH OF STOCKTON
WATER UTILITY FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
REF.
31, 2015
31, 2014
ASSETS
Operating Fund:
Cash - Treasurer
D-4
$
243,124.34
$
232,808.77
$
243,124.34
$
232,808.77
Receivables and Inventories with Full Reserves:
Consumer Accounts Receivable
D-6
$
3,109.35
$
2,819.53
D
$
3,109.35
$
2,819.53
Total Operating Fund
$
246,233.69
$
235,628.30
Capital Fund:
Fixed Capital
D-14
$
402,376.93
$
402,376.93
Fixed Capital Authorized and Uncompleted
D-15
290,000.00
280,000.00
Interfunds Receivable
D-16
50,590.68
73,189.76
Total Capital Fund
$
742,967.61
$
755,566.69
$
989,201.30
$
991,194.99
LIABILITIES, RESERVES AND FUND BALANCE
Operating Fund:
Liabilities:
Appropriation Reserves
D-3:D-8
$
34,053.71
$
8,504.57
Encumbrances Payable
D-5
3,305.30
3,141.78
Accrued Interest on Bonds and Loans
D-7
655.34
1,500.00
Interfunds Payable
D-9
50,594.28
61,967.26
$
88,608.63
$
75,113.61
Reserve for Receivables and Inventory
D
3,109.35
2,819.53
Fund Balance
D-1
154,515.71
157,695.16
Total Operating Fund
$
246,233.69
$
235,628.30
Capital Fund:
Improvement Authorizations:
Funded
D-10
$
20,542.90
$
19,872.30
Unfunded
D-10
11,108.31
22,249.38
Capital Improvement Fund
D-12
18,983.07
21,983.07
Bond Anticipation Notes
D-17
220,284.00
222,500.00
Reserve for:
Contracts Payable
D-20
4,956.40
14,085.01
Amortization
D-13
402,376.93
402,376.93
Deferred Amortization
D-11
49,716.00
37,500.00
Capital Outlay
D-18
15,000.00
15,000.00
Total Capital Fund
$
742,967.61
$
755,566.69
$
989,201.30
$
991,194.99
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, 2015
YEAR ENDED
YEAR ENDED
DECEMBER
DECEMBER
REF.
31, 2015
31, 2014
REVENUE AND OTHER INCOME REALIZED
Fund Balance Utilized
D-1
$
13,000.00
$
Rents
D-2
85,328.05
84,705.31
Other Credits to Income:
Miscellaneous Revenue Not Anticipated
D-2
435.85
592.93
Accrued Interest Canceled
D-7
492.66
4,282.04
Unexpended Balance of Appropriation Reserves
D-8
7,838.99
9,527.43
TOTAL INCOME
$
107,095.55
$
99,107.71
EXPENDITURES
Operating
D-3
$
84,660.00
$
68,034.00
Statutory Expenditures and Deferred Charges
D-3
1,400.00
1,256.00
Debt Service
D-3
4,215.00
6,200.00
Capital Improvements
D-3
7,000.00
4,500.00
TOTAL EXPENDITURES
$
97,275.00
$
79,990.00
Excess in Revenue
$
9,820.55
$
19,117.71
Fund Balance
Balance, January 1
D
157,695.16
138,577.45
D
$
167,515.71
$
157,695.16
Utilization as Anticipated Revenue
D-1
13,000.00
Balance, December 31
D
$
154,515.71
$
157,695.16
The accompanying Notes to the Financial Statements are an integral part of this statement.
"D-2"
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2015
EXCESS
OR
REF.
ANTICIPATED
REALIZED
(DEFICIT)
Fund Balance Anticipated
$
13,000.00
$
13,000.00
$
Water Use Charges
D-1:D-6
84,275.00
85,328.05
1,053.05
Miscellaneous Revenue Not Anticipated
D-1:D-2
435.85
435.85
D-3
$
97,275.00
$
98,763.90
$
1,488.90
ANALYSIS OF REALIZED REVENUE
Water Use Charges:
Consumer Accounts Receivable:
Collected
D-6
$
85,328.05
$
85,328.05
Miscellaneous-Collector
$
39.84
Interest on Delinquent Accounts
396.01
D-2:D-4
$
435.85
The accompanying Notes to the Financial Statements are an integral part of this statement.
"D-3"
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2015
APPROPRIATIONS
EXPENDED
BUDGET AFTER
PAID OR
BUDGET
MODIFICATION
CHARGED
RESERVED
Operating:
Salaries and Wages
$
17,460.00
$
17,460.00
$
17,421.20
$
38.80
Other Expenses
67,200.00
67,200.00
33,252.30
33,947.70
Total Operating
$
84,660.00
$
84,660.00
$
50,673.50
$
33,986.50
Capital Improvements:
Capital Improvement Fund
$
7,000.00
$
7,000.00
$
7,000.00
$
Total Capital Improvements
$
7,000.00
$
7,000.00
$
7,000.00
$
Debt Services:
Payment of Bond Anticipation Notes
$
2,215.00
$
2,215.00
$
2,215.00
$
Interest on Notes
2,000.00
2,000.00
2,000.00
Total Debt Services
$
4,215.00
$
4,215.00
$
4,215.00
$
Statutory Expenditures:
Contributions to:
Social Security System (O.A.S.I.)
$
1,400.00
$
1,400.00
1,332.79
$
67.21
Total Statutory Expenditures
$
1,400.00
$
1,400.00
$
1,332.79
$
67.21
$
97,275.00
$
97,275.00
$
63,221.29
$
34,053.71
REF.
D-2
D:D-1
Cash Disbursements
D-4
$
58,615.99
Encumbrances Payable
D-5
2,605.30
Accrued Interest
D-7
2,000.00
$
63,221.29
The accompanying Notes to the Financial Statements are an integral part of this statement.
THIS PAGE INTENTIONALLY LEFT BLANK
SEWER UTILITY FUND
"E"
SHEET #1
BOROUGH OF STOCKTON
SEWER UTILITY FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
ASSETS
REF.
31, 2015
31, 2014
Operating Fund:
Cash - Treasurer
E-5
$
456,345.36
$
410,676.91
$
456,345.36
$
410,676.91
Receivables and Inventories with Full Reserves:
Consumer Accounts Receivable
E:E-7
$
15,104.72
$
10,873.50
$
15,104.72
$
10,873.50
Deferred Charges:
Overexpenditure of Appropriations
E-4
$
$
5,259.50
$
$
5,259.50
Total Operating Fund
$
471,450.08
$
426,809.91
Capital Fund:
Fixed Capital
E-16
$
2,879,656.48
$
2,879,656.48
Fixed Capital Authorized and Uncompleted
E-13
40,000.00
20,000.00
Interfunds Receivable
E-14
116,712.18
115,209.33
Total Capital Fund
$
3,036,368.66
$
3,014,865.81
$
3,507,818.74
$
3,441,675.72
The accompanying Notes to the Financial Statements are an integral part of this statement.
"E"
SHEET #2
BOROUGH OF STOCKTON
SEWER UTILITY FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
LIABILITIES, RESERVES AND FUND BALANCE
REF.
31, 2015
31, 2014
Operating Fund:
Liabilities:
Budget Appropriations
E-4:E-10
$
68,194.45
$
152.41
Encumbrances Payable
E-9
17,210.37
20,773.75
Interfunds Payable
E-8
116,712.18
115,209.33
Accrued Interest
E-6
4,296.31
4,936.94
$
206,413.31
$
141,072.43
Reserve for Receivables
E
15,104.72
10,873.50
Fund Balance
E-1
276,886.35
274,863.98
Total Operating Fund
$
498,404.38
$
426,809.91
Capital Fund:
Improvement Authorizations:
Unfunded
E-15
$
20,000.00
$
20,000.00
Serial Bonds Payable:
E-19
124,407.87
151,850.35
N.J. Environmental Infrastructure Loan Payable
E-11
190,065.83
244,684.32
Reserve for:
Amortization
E-17
2,563,062.30
2,481,001.33
Deferred Amortization
E-18
20,000.00
Capital Improvements
E-18
3,000.00
3,000.00
Capital Improvement Fund
E-12
110,110.00
113,088.00
Fund Balance
E-2
1,241.81
1,241.81
Total Capital Fund
$
3,036,368.66
$
3,014,865.81
$
3,534,773.04
$
3,441,675.72
The accompanying Notes to the Financial Statements are an integral part of this statement.
"E-1"
BOROUGH OF STOCKTON
SEWER UTILITY FUND
STATEMENTS OF OPERATIONS
AND CHANGE IN FUND BALANCE - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2015
REF.
YEAR 2014
YEAR 2013
REVENUE AND OTHER INCOME REALIZED
Fund Balance Utilized
E-3
$
26,954.30
$
Sewer Service Charges
E-3
277,675.95
284,477.20
Miscellaneous
E-3
1,566.50
2,065.06
Other Credits to Income:
Accrued Interest Canceled
E-6
6,665.68
3,956.26
Unexpended Balance of Appropriation Reserves
E-10
152.41
21,957.63
TOTAL INCOME
$
313,014.84
$
312,456.15
EXPENDITURES
Operating
E-4
$
167,500.00
$
133,537.50
Statutory Expenditures and Deferred Charges
E-4
6,609.50
1,456.04
Capital Improvement
E-4
35,022.00
17,022.00
Debt Service
E-4
101,860.97
105,461.78
Refund of Prior Year Revenues
E-5
26,792.55
TOTAL EXPENDITURES
$
310,992.47
$
284,269.87
Excess in Revenue
$
2,022.37
$
28,186.28
Adjustments to Income before Fund Balance:
Deferred Charges to the Budget of the Succeeding Year
E:E-4
5,259.50
Statutory Excess to Fund Balance
$
2,022.37
$
33,445.78
Fund Balance
Balance, January 1
E-1
274,863.98
241,418.20
$
276,886.35
$
274,863.98
Decreased by:
Utiization as Anticipated Revenue
E-1
26,954.30
Balance, December 31
E
$
249,932.05
$
274,863.98
The accompanying Notes to the Financial Statements are an integral part of this statement.
"E-2"
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
STATEMENT OF FUND BALANCE - REGULATORY BASIS
REF.
Balance, December 31, 2014
E
$
1,241.81
Balance, December 31, 2015
E
$
1,241.81
The accompanying Notes to the Financial Statements are an integral part of this statement.
"E-3"
BOROUGH OF STOCKTON
SEWER UTILITY OPERATING FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2015
EXCESS
OR
REF.
ANTICIPATED
REALIZED
(DEFICIT)
Fund Balance Utilized
E-1
$
26,954.30
$
26,954.30
$
Sewer Charges
E-1:E-3
284,477.20
277,675.95
(6,801.25)
Miscellaneous
E-1:E-3
1,566.50
1,566.50
E-4
$
311,431.50
$
306,196.75
$
(5,234.75)
ANALYSIS OF REALIZED REVENUE
Sewer Charges:
Collections
E-7
$
277,675.95
E-3
$
277,675.95
Miscellaneous:
Interest on Delinquent Accounts
$
1,486.74
Miscellaneous
35.00
Interest on Investments
44.76
E-3:E-5
$
1,566.50
The accompanying Notes to the Financial Statements are an integral part of this statement.
"E-4"
APPROPRIATIONS
EXPENDED
BUDGET AFTER
PAID OR
BUDGET
MODIFICATION
CHARGED
RESERVED
CANCELLED
Operating:
Salaries and Wages
$
17,500.00
$
17,500.00
$
17,421.20
$
78.80
$
Other Expenses
150,000.00
150,000.00
99,901.58
50,098.42
Total Operating
$
167,500.00
$
167,500.00
$
117,322.78
$
50,177.22
$
Capital Improvements:
Capital Improvement Fund
$
17,022.00
$
17,022.00
$
17,022.00
$
$
Capital Outlay
18,000.00
18,000.00
18,000.00
Total Capital Improvements
$
35,022.00
$
35,022.00
$
17,022.00
$
18,000.00
$
Debt Service:
Payment of Bond Principal
$
27,500.00
$
27,500.00
$
27,442.48
$
$
57.52
Interest on Bonds
8,800.00
8,800.00
8,800.00
New Jersey Environmental Infrastructure Loan:
Payment of Bond Principal
55,000.00
55,000.00
54,618.49
381.51
Interest on Bonds
11,000.00
11,000.00
11,000.00
Total Debt Service
$
102,300.00
$
102,300.00
$
101,860.97
$
$
439.03
Deferred Charges and Statutory Expenditures:
Overexpenditure of Appropriations
$
5,259.50
$
5,259.50
$
5,259.50
$
$
Contributions To:
Social Security System (O.A.S.I.)
1,350.00
1,350.00
1,332.77
17.23
Total Statutory Expenditures
$
6,609.50
$
6,609.50
$
6,592.27
$
17.23
$
$
311,431.50
$
311,431.50
$
242,798.02
$
68,194.45
$
439.03
REF.
E-3
E-1
E:E-1
Cash Disbursements
E-5
$
200,528.15
Accounts Payable
E-9
17,210.37
Deferred Charges
E
5,259.50
Accrued Interest
E-6
19,800.00
$
242,798.02
The accompanying Notes to the Financial Statements are an integral part of this statement.
BOROUGH OF STOCKTON
SEWER UTILITY OPERATING FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2015
THIS PAGE INTENTIONALLY LEFT BLANK
NOTES TO FINANCIAL STATEMENTS
BOROUGH OF STOCKTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2015 AND 2014
NOTE 1:
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 regional school districts, inasmuch as their activities are administered
by separate boards.
B.
Description of Funds
The Governmental Accounting Standards Board (GASB) 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 31st of each year and recorded as
liabilities, except for amounts which may be canceled by the governing
body. Appropriation reserves are available, until lapsed at the close of
the succeeding year, to meet specific claims, commitments or contracts
incurred during the preceding fiscal year. Lapsed appropriation reserves
are recorded as income. Appropriations for principal payments on
outstanding general capital and utility bonds and notes are provided on
the cash basis, interest on general capital indebtedness is on the cash
basis, whereas interest on utility indebtedness is on the accrual basis.
Encumbrances - Contractual orders at December 31 are reported as
expenditures through the establishment of encumbrances payable.
Under GAAP, encumbrances outstanding at year end are reported as
reservations of fund balance because they do not constitute expenditures
or liabilities.
Foreclosed Property - 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. The Borough has not
updated its Fixed Asset Ledger since 2006.
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.
Accounting and Financial Reporting for Pensions - In June 2012, the
Governmental Accounting Standards Board (GASB) approved Statement
No. 68 Accounting and financial reporting for pensions administered by
state and local government employers. This Statement improves
accounting and financial reporting by state and local governments for
pensions. It also improves information provided by state and local
government employers about financial support for pensions that is
provided by other entities. This Statement results from a comprehensive
review of the effectiveness of existing standards of accounting and
financial reporting for pensions with regard to providing decision useful
information, supporting assessments of accountability and interperiod
equity, and creating additional transparency. This Statement replaces the
requirement of Statement No. 27, Accounting for Pension by State and
Local Governmental Employers, as well as the requirements of Statement
No. 50, Pension Disclosures, as they relate to pensions that are provided
through pension plans administered as trusts or equivalent arrangements
that meet certain criteria. The requirements of Statements 27 and 50
remain applicable for pensions that are not covered by the scope of this
Statement. This statement is effective for periods beginning after June 15,
2014.
8
NOTE 1:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C.
Basis of Accounting (Continued)
Accounting and Financial Reporting for Pensions (Continued)
In November of 2013, GASB approved Statement 71, Pension Transition
for Contributions made Subsequent to the Measurement Date-an
amendment to GASB No. 68. The objective of this Statement is to
address an issue regarding application of the transition provisions of
Statement No. 68, Accounting and Financial Reporting for Pensions. The
issue relates to amounts associated with contributions, if any, made by a
state or local government employer or non-employer contributing entity to
a defined benefit pension plan after the measurement date of the
government's beginning net pension liability.
Statement 68 requires a state or local government employer (or non-
employer contributing entity in a special funding situation) to recognize a
net pension liability measured as of a date (the measurement date) no
earlier than the end of its prior fiscal year. If a state or local government
employer or non-employer contributing entity makes a contribution to a
defined benefit pension plan between the measurement date of the
reported net pension liability and the end of the government's reporting
period, Statement 68 requires that the government recognize its
contribution as a deferred outflow of resources.
In addition, Statement 68 requires recognition of deferred outflows of
resources and deferred inflows of resources for changes in the net
pension liability of a state or local government employer or non-employer
contributing entity that arise from other types of events.
At transition to Statement 68, if it is not practical for an employer or non-
employer contributing entity to determine the amounts of all deferred
outflows of resources and deferred inflows of resources related to
pensions, paragraph 137 of Statement 68 required that beginning
balances for deferred outflows of resources and deferred inflows of
resources not be reported. Consequently, if it is not practical to determine
the amounts of all deferred outflows of resources and deferred inflows of
resources related to pensions, contributions made after the measurement
date of the beginning net pension liability could not have been reported as
deferred outflows of resources at transition. This could have resulted in a
significant understatement of an employer or non-employer contributing
entity's beginning net position and expense in the initial period of
implementation.
9
NOTE 1:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C.
Basis of Accounting (Continued)
Accounting and Financial Reporting for Pensions (Continued)
This Statement amends paragraph 137 of Statement 68 to require that, at
transition, a government recognize a beginning deferred outflow of
resources for its pension contributions, if any, made subsequent to the
measurement date of the beginning net pension liability. Statement 68, as
amended, continues to require that beginning balances for other deferred
outflows of resources and deferred inflows of resources related to
pensions be reported at transition only if it is practical to determine all
such amounts.
Under GAAP, municipalities are required to recognize the pension liability
in Statements of Revenues, Expenses, Changes in Net Assets (balance
sheets) and Notes to the Financial Statements in accordance with
GASB 68. The liability required to be displayed by GASB 68 is displayed
as a separate line item in the Unrestricted Net Assets area of the balance
sheet.
New Jersey’s municipalities and counties do not follow GAAP accounting
principles and, as such, do not follow GASB requirements with respect to
recording the net pension liability as a liability on their balance sheets.
However, N.J.A.C. 5:30 6.1(c)(2) requires municipalities to disclose
GASB 68 information in the Notes to the Financial Statements. The
disclosure must meet the requirements of GASB 68.
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.
10
NOTE 2:
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, 2015:
Bank
Reconciling Items:
Reconciled
Fund Type
Balance
Additions
Deletions
Balance
Current Fund
$ 677,556.35
$ 85.62
$ 4,096.31
$ 673,545.66
Animal Control Fund
3,007.84
3,007.84
Other Trust Fund
29,643.70
35.04
5,693.09
23,985.65
General Capital Fund
249,190.75
8,664.31
11,226.10
246,628.96
Water Utility Operating Fund
238,047.39
11,226.10
6,149.15
243,124.34
Sewer Utility Operating Fund
455,288.21
1,582.15
525.00
456,345.36
TOTAL DECEMBER 31, 2015
$1,652,734.24
$ 21,593.22
$27,689.65
$1,646,637.81
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, 2015, 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 $1,402,734.24 was covered under
the provisions of NJGUDPA.
11
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.
12
NOTE 2:
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, 2015.
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.
NOTE 3:
LONG-TERM 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.
13
NOTE 3:
LONG-TERM DEBT (CONTINUED)
SUMMARY OF MUNICIPAL DEBT
YEAR 2015
YEAR 2014
YEAR 2013
Issued:
General Capital
Bonds, Notes and Loans
$
577,988.66
$
626,764.13
$
793,980.80
Water Utility:
Bonds and Notes
220,284.00
222,500.00
175,000.00
Sewer Utility:
Bonds and Notes
314,473.70
396,534.67
478,196.45
Net Debt Issued
$ 1,112,746.36
$ 1,245,798.80
$ 1,447,177.25
Authorized But Not Issued:
General Capital - Bonds and Notes
$
364,798.80
$
364,798.80
$
406,048.80
Water Capital - Bonds and Notes
20,000.00
20,000.00
20,000.00
Sewer Utility - Bonds and Notes
22,120.48
22,120.48
22,120.48
Total Authorized But Not Issued
$
406,919.28
$
406,919.28
$
448,169.28
NET BONDS AND NOTES
ISSUED AND AUTHORIZED
BUT NOT ISSUED
$ 1,519,665.64
$ 1,652,718.08
$ 1,895,346.53
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 .988%.
GROSS DEBT
DEDUCTIONS
NET DEBT
Regional School District Debt
$
1,034,307.78 $
1,034,307.78 $
Sewer Utility Debt
336,594.18
336,594.18
Water Utility Debt
240,284.00
240,284.00
General Debt
942,787.46
29,664.45
913,123.01
$
2,553,973.42 $
1,640,850.41 $
913,123.01
NET DEBT $913,123.01 DIVIDED BY EQUALIZED VALUATION BASIS PER
N.J.S.A. 40A:2-2, $92,466,606.67 EQUALS .988%.
14
NOTE 3:
LONG-TERM DEBT (CONTINUED)
BORROWING POWER UNDER N.J.S.A. 40A:2-6 AS AMENDED
Equalized Valuation Basis - December 31, 2015
$92,466,606.67
3-1/2% of Equalized Valuation Basis
$3,236,331.23
Net Debt
913,123.01
Remaining Borrowing Power at December 31, 2015
$2,323,208.22
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 Regional School District.
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
$98,763.90
Deduction:
Operating and Maintenance Cost
$86,060.00
Debt Service Per Water Utility Account
4,215.00
90,275.00
Excess in Revenue
8,488.90
$
15
NOTE 3:
LONG-TERM DEBT (CONTINUED)
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
$306,196.75
Deduction:
Operating and Maintenance Cost
$168,850.00
Debt Service Per Sewer Utility Account
95,835.92
264,685.92
Excess in Revenue
41,510.83
$
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%.
$
107,116.80
New Jersey Environmental Infrastructure Trust Loans:
$300,000.00 of 2006 Trust Loan due in annual
installments of $15,000.00 to $25,000.00 through
August 2026 at variable interest rates of 4.00% to 5.00%.
$
205,000.00
$282,975.00 of 2006 Trust Loan due in annual
installments of $8,788.26 to $15,427.55 through
August 2021.
$
82,558.86
16
NOTE 3:
LONG-TERM DEBT (CONTINUED)
Sewer Utility Capital
New Jersey Environmental Infrastructure Loans:
$495,000.00 of 2000 Trust Loan due in annual
installments of $30,000.00 to $40,000.00 through
August 2020 at interest rates of 5.00% to 5.25%.
$
175,000.00
$488,624.00 of 2000 Trust Fund due in annual installments of
$15,065.83 to $24,618.49 due August 2016.
15,065.83
$
190,065.83
Sewer Improvement Bonds:
$591,000.00 of 1979 Serial Bonds due in annual
installments of $28,841.61 to $33,569.82 through
December 2019 at a variable interest rate.
$
124,407.87
Bonds and Notes Authorized But Not Issued
At December 31, 2015, the Borough has authorized but not issued bonds and
notes as follows:
General Capital Fund
$364,798.80
Water Utility Capital Fund
$20,000.00
Sewer Utility Capital Fund
$22,120.48
17
NOTE 3:
LONG-TERM DEBT (CONTINUED)
SCHEDULE OF ANNUAL DEBT SERVICE FOR PRINCIPAL AND INTEREST
FOR GREEN TRUST LOANS ISSUED AND
OUTSTANDING DECEMBER 31, 2015
Calendar
Trust Loan
Year
Principal
Interest
Total
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
$
107,116.80
$
11,031.25
$
118,148.05
SCHEDULE OF ANNUAL DEBT SERVICE FOR PRINCIPAL AND INTEREST
FOR NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE LOANS ISSUED AND
OUTSTANDING DECEMBER 31, 2015
Calendar
Trust Loan
Fund Loan
Year
Principal
Interest
Principal
Total
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
8,788.26
34,200.76
2022
20,000.00
4,587.50
24,587.50
2023
20,000.00
3,762.50
23,762.50
2024
20,000.00
2,912.50
22,912.50
2025
20,000.00
1,912.50
21,912.50
2026
25,000.00
1,062.50
26,062.50
Total
$
205,000.00
$
56,862.50
$
82,558.86
$
344,421.36
18
NOTE 3:
LONG-TERM DEBT (CONTINUED)
SCHEDULE OF ANNUAL DEBT SERVICE FOR PRINCIPAL AND INTEREST
FOR NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE LOANS ISSUED AND
OUTSTANDING DECEMBER 31, 2015
Calendar
Trust Loan
Fund Loan
Year
Principal
Interest
Principal
Total
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
$
175,000.00
$
28,575.00
$
15,065.83
$
218,640.83
SEWER UTILITY
SCHEDULE OF ANNUAL DEBT SERVICE FOR PRINCIPAL AND INTEREST
FOR BONDED DEBT ISSUED AND OUTSTANDING DECEMBER 31, 2015
SEWER UTILITY
Calendar
Year
Principal
Interest
Total
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
$
124,407.87
$
15,945.44
$
140,353.31
19
NOTE 4:
SHORT-TERM DEBT
In accordance with NJSA 40A:2-8.1, a local unit may, in anticipation of the
issuance of bonds, borrow money and issue notes if the bond ordinance or
subsequent resolution so provides. Any such note shall be designated as a
"bond anticipation note" and shall be subject to the following provisions:
(1) every note shall contain a recital that it is issued for a period not exceeding
one year and may be renewed from time to time for additional periods, none
of which shall exceed one year;
(2) all such notes, including renewals, shall mature and be paid not later than
the first day of the fifth month following the close of the tenth fiscal year next
following the date of the original notes; and
(3) no such notes shall be renewed beyond the third anniversary date of the
original notes unless an amount of such notes, at least equal to the first
legally payable installment of the bonds in anticipation of which those notes
are issued, is paid and retired on or before each subsequent anniversary date
beyond which such notes are renewed from funds other than the proceeds of
obligations.
Outstanding Bond Anticipation Notes are summarized as follows:
Interest
Original
General Capital
Rate
Issue Date
Amount
2010-02
1.50%
9/23/2010
$
34,763.00
2011-01
1.50%
9/21/2012
148,550.00
$
183,313.00
Water Capital
2012-04
1.50%
9/21/2012
$
172,784.00
2014-04
1.50%
9/19/2014
47,500.00
$
220,284.00
In accordance with N.J.S.A. 40A:4 sections 64 through 73, in any fiscal year, in
anticipation of the collection of taxes for such year, whether levied in such year,
or in anticipation of other revenue for such year, the Borough may, by resolution,
borrow money and issue its negotiable notes, each of which shall be designated
by the fiscal year to which it pertains. The proceeds may be used to pay
outstanding previous notes of same purpose, or for purposes provided for in the
budget or for which taxes are levied or to be levied for in such year. The amount
outstanding shall not exceed an amount certified as the gross borrowing power,
and no such notes shall be authorized in excess of an amount certified as the net
borrowing power. Tax anticipation notes may be renewed from time to time, but
any note shall mature within 120 days after the beginning of the succeeding fiscal
year, and bear an interest rate that does not exceed 6%. The Borough did not
have any Tax Anticipation Notes in 2015.
20
NOTE 5:
FUND BALANCES APPROPRIATED
Fund balances at December 31, 2015 which were appropriated and included as
anticipated revenue in their own respective funds for the year ending
December 31, 2016 were as follows:
Current Fund
$163,000.00
Water Operating Fund
$ 13,195.00
Sewer Operating Fund
$ 22,800.00
NOTE 6:
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:
BALANCE
BALANCE
DECEMBER
DECEMBER
31, 2015
31, 2014
Prepaid Taxes
$2,366.49
$11,089.78
NOTE 7:
PENSION PLANS
Substantially all eligible employees participate in the Public Employees'
Retirement System (PERS) or the Defined Contribution Retirement System
(DCRP), which have been established by state statute and are administered by
the New Jersey Division of Pensions and Benefits. The Division issues a publicly
available financial report that includes the financial statements and required
supplementary information for the Public Employees Retirement System. These
reports may be obtained by writing to the Division of Pensions and
Benefits, P.O. Box 295, Trenton, New Jersey, 08625 or are available online at
www.nj.gov/treasury/pensions/annrprts.shtml.
21
NOTE 7:
PENSION PLANS (Continued)
Public Employees' Retirement System (PERS) - The Public Employees'
Retirement System (PERS) was established as of January 1, 1955, under the
provisions of N.J.S.A. 43:15A, to provide retirement, death, disability and medical
benefits to certain qualified members. The PERS is a cost-sharing multiple
employer plan. Membership is mandatory for substantially, all full-time
employees of the State of New Jersey or any county, municipality, school district
or public agency, provided the employee is not required to be a member of
another state-administered retirement system or other state pension fund or local
jurisdiction's pension fund.
Defined Contribution Retirement Program (DCRP) - The Defined Contribution
Retirement Program (DCRP) was established July 1, 2007, under the provisions
of Chapter 92, P.L. 2007 and Chapter 103, P.L 2007, and was expanded under
the provisions of Chapter 89, P.L. 2009. The DCRP provides eligible employees
and their beneficiaries with a tax-sheltered, defined contribution retirement
benefit, along with life insurance coverage and disability coverage.
Vesting and Benefit Provisions
The vesting and benefit provisions for PERS are set by N.J.S.A. 43:15A and
43:36. All benefits vest after ten years of service, except for medical benefits,
which vest after 25 years of service. Members may seek early retirement after
achieving 25 years of service credit or they may elect deferred retirement after
achieving ten years of service credit, In which case, benefits would begin the first
day of the month after the member attains normal retirement age.
Newly elected or appointed officials that have an existing DCRP account, or are
a member of another State-administered retirement system are immediately
invested in the DCRP. For newly elected or appointed officials that do not qualify
for immediate vesting in the DCRP. employee and employer contributions are
held during the initial year of membership. Upon commencing the second year of
DCRP membership, the member is fully invested. However, if a member is not
eligible to continue in the DCRP for a second year of membership, the member
may apply for a refund of the employee contributions from the DCRP, while the
employer contributions will revert back to the employer. Employees are required
to contribute 5.5% of their base salary and employers contribute 3.0%.
Funding Policy
The contribution policy is set by New Jersey State Statutes and contributions are
required by active members and contributing employers. Plan members and
employer contributions may be amended by State of New Jersey legislation.
Effect July 2014 PERS provides for employee contributions of 6.92% of
employees' annual compensation. Employers are required to contribute at an
actuarially determined rate. The actuarially determined contribution includes
funding for cost-of-living adjustments, noncontributory death benefits, and post-
retirement medical premiums.
22
NOTE 7:
PENSION PLANS (Continued)
All contributions were equal to the required contributions for each of the three
years, respectively.
Certain Borough employees are also covered by the Federal Insurance
Contribution Act. The Borough's share of pension costs, which is based upon the
annual billings received from the State, amounted to $12,482.00 for 2015,
$11,531.00 for 2014, and $11,834.00 for 2013.
Accounting and Financial Reporting for Pensions – GASB #68
The Governmental Accounting Standards Board (GASB) has issued Statement
No. 68 “Accounting and Financial Reporting for Public Employees Pensions” and
is effective for fiscal years beginning after June 15, 2014. This statement
requires the State of New Jersey to calculate and allocate, for note disclosure
purposes only, the unfunded net pension liability of Public Employees Retirement
System (PERS) and the Police and Firemen’s Retirement System (PFRS) of the
participating municipality as of December 31, 2015. The statement does not alter
the amounts of funds that must be budgeted for pension payments under existing
state law.
Under accounting principles and practices prescribed by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey,
any unfunded net pension liability of the municipality, allocated by the State of
New Jersey, is not required to be reported in the financial statements as
presented and any pension contributions required to be paid are raised in that
year’s budget and no liability is accrued at December 31, 2015.
Public Employees Retirement System (PERS)
At June 30, 2015, the State reported a net pension liability of $320,741.00 for the
Borough of Stockton’s proportionate share of the total net pension liability. The
total pension liability for the June 30, 2015 measurement date was determined by
an actuarial valuation as of July 1, 2014, which was rolled forward to June 30,
2015. The Borough's proportion of the net pension liability was based on a
projection of the Borough’s long-term share of contributions to the pension plan
relative to the projected contributions of all participating employers, actuarially
determined. At June 30, 2015, the Borough’s proportion was 0.0014288177
percent, which was a decrease of 0.0003446243 percent from its proportion
measured as of June 30, 2014.
23
NOTE 7:
PENSION PLANS (CONTINUED)
Accounting and Financial Reporting for Pensions - GASB 68 (Continued)
Public Employees Retirement System (PERS) (Continued)
For the year ended June 30, 2015, the State recognized an actuarially
determined pension expense of $16,657.00 for the Borough of Stockton’s
proportionate share of the total pension expense. The pension expense
recognized in the Borough’s financial statement based on the April 1, 2015 billing
was $14,620.00.
At June 30, 2015, the State reported deferred outflows of resources and deferred
inflows of resources related to PERS from the following sources:
Deferred
Deferred
Inflow of
Outflow of
Resources
Resources
Differences between expected and actual experience
$7,652.00
Changes of assumptions
34,445.00
Net difference between projected and actual earnings
on pension plan investments
$5,157.00
Changes in proportion and differences between Borough
contributions and proportionate share of contributions
54,742.00
32,030.00
$59,899.00
$74,127.00
Other local amounts reported by the State as the Borough’s proportionate share
of deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in the State’s actuarially calculated pension expense
as follows:
Year Ended
June 30
Amount
2016
$2,474.00
2017
$2,474.00
2018
$2,474.00
2019
$7,420.00
2020
($614.00)
24
NOTE 7:
PENSION PLANS (CONTINUED)
Accounting and Financial Reporting for Pensions - GASB 68 (Continued)
Public Employees Retirement System (PERS) (Continued)
Additional Information
Collective balances at June 30, 2015 and 2014 are as follows:
6/30/2015
6/30/2014
Collective deferred outflows of resources
$5,086,138,484
$1,032,618,058
Collective deferred inflows of resources
478,031,236
1,726,631,532
Collective net pension liability - local
22,447,996,119
18,722,735,003
Borough's proportion
0.0014288177%
0.0017734420%
Actuarial Assumptions
The total pension liability for the June 30, 2015 measurement date was
determined by an actuarial valuation as of July 1, 2014, which rolled forward to
June 30, 2015. The total pension liability for the June 30, 2014 measurement
date was determined by an actuarial valuation as of July 1, 2013. These actuarial
valuations used the following assumptions:
June 30, 2014
June 30, 2015
Inflation
3.01 Percent
3.04 Percent
Salary Increases (based on age)
2012-2021
2.15-4.40 Percent
2.15-4.40 Percent
Thereafter
3.15-5.40 Percent
3.15-5.40 Percent
Investment Rate of Return
7.90 Percent
7.90 percent
Mortality rates were based on the RP-2000 Combined Healthy Male and Female
Mortality Tables (setback 1 year for males and females) for service retirement
and
beneficiaries
of former members
with
adjustments for mortality
improvements from the base year of 2012 based on Projection Scale AA. The
RP-2000 Disabled Mortality Tables (setback 3 years for males and setback
1 year for females) are used to value disabled retirees.
25
NOTE 7:
PENSION PLANS (CONTINUED)
Accounting and Financial Reporting for Pensions - GASB 68 (Continued)
Public Employees Retirement System (PERS) (Continued)
Actuarial Assumptions (Continued)
The actuarial assumptions used were based on the results of an actuarial
experience study for the period July 1, 2008 to June 30, 2011. It is likely that
future experience will not exactly conform to these assumptions. To the extent
that actual experience deviates from these assumptions, the emerging liabilities
may be higher or lower than anticipated. The more the experience deviates, the
larger the impact on future financial statements.
Long-Term Rate of Return
In accordance with State statute, the long-term expected rate of return on plan
investments is determined by the State Treasurer, after consultation with the
Directors of the Division of Investments and Division of Pensions and Benefits,
the board of trustees and the actuaries. Best estimates of arithmetic real rates of
return for each major asset class included in PERS's target asset allocation as of
June 30, 2014 and June 30, 2015 are summarized in the following table:
June 30, 2015
June 30, 2014
Long-Term
Long-Term
Target
Expected Real
Target
Expected Real
Asset Class
Allocation
Rate of Return
Allocation
Rate of Return
Cash
5.00%
1.04%
6.00%
0.80%
Core Bond
1.00%
2.49%
Intermediate Term Bonds
11.20%
2.26%
Mortgages
2.10%
1.62%
2.50%
2.17%
High Yield Bonds
2.00%
4.03%
5.50%
4.82%
Inflation Indexed Bonds
1.50%
3.25%
2.50%
3.51%
Broad U.S. Equities
27.25%
8.52%
25.90%
8.22%
Developed Foreign Markets
12.00%
6.88%
12.70%
8.12%
Emerging Market Equities
6.40%
10.00%
6.50%
9.91%
Private Equity
9.25%
12.41%
8.25%
13.02%
Hedge Funds/Absolute Returns
12.00%
4.72%
12.25%
4.92%
Real Estate (Property)
2.00%
6.83%
3.20%
5.80%
Commodities
1.00%
5.32%
2.50%
5.35%
U.S. Treasuries
1.75%
1.64%
Investment Grade Credit
10.00%
1.79%
Global Debt ex US
3.50%
(0.40)%
REIT
4.25%
5.12%
100.00%
100.00%
26
NOTE 7:
PENSION PLANS (CONTINUED)
Accounting and Financial Reporting for Pensions - GASB 68 (Continued)
Public Employees Retirement System (PERS) (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 4.90% and
5.39% as of June 30, 2015 and 2014, respectively. This single blended discount
rate was based on the long-term expected rate of return on pension plan
investments of 7.9%, and a municipal bond rate of 4.30% and 4.29% as
of June 30, 2015 and 2014, respectively, based on the Bond Buyer Go 20-Bond
Municipal Bond Index which includes tax-exempt general obligation municipal
bonds with an average rating of AA/Aa or higher. The projection of cash flows
used to determine the discount rate assumed that contributions from plan
members will be made at the current member contribution rates and that
contributions from employers will be made based on the average of the last five
years of contributions made in relation to the last five years of recommended
contributions. Based on those assumptions, the plan's fiduciary net position was
projected to be available to make projected future benefit payments of current
plan members through 2033. Therefore, the long-term expected rate of return on
plan investments was applied to projected benefit payments through 2033, and
the municipal bond rate was applied to projected benefit payments after that date
in determining the total pension liability.
Sensitivity of the collective net pension liability to changes in the discount rate.
The following presents the collective net pension liability of the participating
employers as of June 30, 2015 respectively, calculated using the discount rate as
disclosed above as well as what the collective net pension liability would
be if it was calculated using a discount rate that is 1-percentage point
lower or 1- percentage point higher than the current rate:
June 30, 2015
1%
At Current
1%
Decrease
Discount Rate
Increase
3.90%
4.90%
5.90%
Borough's proportionate share
of the pension liability
$398,642.00
$320,741.00
$255,429.00
Pension plan fiduciary net position
Detailed information about the pension plan’s fiduciary net position is available in
the separately issued Financial Report for the State of New Jersey Public
Employees Retirement System (PERS).
27
NOTE 8:
COMPENSATED ABSENCES
The Borough does not have a policy which allows employees to accrue unused
vacation and sick pay.
NOTE 9:
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.
NOTE 10:
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 2015. 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.S.A. 40A:2-51.
NOTE 11:
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 2015 audit report. In
addition, these programs are also subject to compliance and financial audits by
the grantors or their representatives. As of December 31, 2015, the Borough
does not believe that any material liabilities will result from such audits.
NOTE 12:
RISK MANAGEMENT
The Borough is exposed to various risks of loss related to torts; theft of, damage
to, and destruction of assets; errors and omissions, injuries to employees; and
natural disasters. The Borough maintains 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.
28
NOTE 13:
INTERFUND RECEIVABLES AND PAYABLES
The following interfund balances remained on the balance sheets at December 31,
2015:
INTERFUND
INTERFUND
FUND
RECEIVABLE
PAYABLE
Current
$5,175.93
$29,862.31
Grant
21,683.05
Animal Control
937.14
Trust Other
4,235.19
General Capital
8,179.26
Water Utility Operating
50,594.28
Water Utility Capital
50,590.68
Sewer Utility Operating
116,712.18
Sewer Utility Capital
116,712.18
TOTAL
$202,341.10
$202,341.10
All balances resulted from the time lag between the dates that short-term loans
were disbursed and payments between funds were made.
NOTE 14:
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 $400.00 for 2015.
NOTE 15:
GASB 45: OTHER POST-EMPLOYMENT BENEFITS
The Borough is required to implement the note disclosure provision of GASB
Statement 45, “Accounting and Financial Reporting by Employers for Post
Employment Benefits Other Than Pension.” This statement which was adopted
during 2004 by the Government Accounting Standard Board (GASB) requires the
Borough to disclose in the notes of the financial statements the future cost of the
other post employment benefits (OPEB) on a present value basis instead of the
present pay as you go method. OPEB obligations are non-pension benefits that
the Borough has contractually agreed to provide employees once they have
retired. The Borough does not provide post retirement benefits other than pension
to its employees which is provided through the New Jersey pension system.
29
NOTE 16:
SUBSEQUENT EVENTS
The Borough has evaluated subsequent events occurring after the financial
statement date through August 29, 2016. which is the date the financial statements
were available to be issued. Based upon this evaluation, the Borough has
determined that there are no subsequent events needed to be disclosed.
30
BOROUGH OF STOCKTON
SUPPLEMENTARY SCHEDULES - ALL FUNDS
YEAR ENDED DECEMBER 31, 2015
"A-4"
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF CASH-TREASURER
FEDERAL AND STATE
REF.
CURRENT FUND
GRANT FUND
Balance, December 31, 2014
A
$
433,596.71
$
Increased by Receipts:
Collector
A-5
$
1,897,671.27
$
State of New Jersey-Chapter 20, P.L. 1971
A-8
6,250.00
Revenue Accounts Receivable
A-9
145,076.77
Miscellaneous Revenue Not Anticipated
A-2
50,371.33
Interfunds Received
A-10:A-22
12,206.00
Reserve for Grants - Unappropriated
A-11:A-15
6,150.00
4,000.00
2,117,725.37
4,000.00
$
2,551,322.08
$
4,000.00
Decreased by Disbursements:
2015 Appropriations
A-3
$
492,778.18
$
2014 Appropriation Reserves
A-12
20,416.18
Interfunds Disbursed
A-10:A-21
3,035.78
County Taxes
A-13
342,309.97
Regional High School Tax
A-14
1,018,618.00
Refund of Prior Year Revenues
A-1
525.00
1,877,683.11
Balance, December 31, 2015
A
$
673,638.97
$
-0-
"A-5"
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF CASH-COLLECTOR
REF.
Received:
Interest on Delinquent Taxes
A-9
$
4,734.69
Taxes Receivable
A-7
1,886,200.03
2016 Taxes Prepaid
A-16
2,366.49
Tax Overpayments
A-17
4,120.06
Senior Citizen Deductions Disallowed
A-8
250.00
$
1,897,671.27
Decreased by Disbursements:
Payments to Treasurer
A-4
$
1,897,671.27
"A-6"
REF.
Balance, December 31, 2014
A
$
17,683.05
Increased by:
Cash Receipts
A-4
Cash Disbursements
A-4:A-10
4,000.00
Balance, December 31, 2015
A
$
21,683.05
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF DUE CURRENT FUND - GRANT FUND
"A-7"
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY
BALANCE
BALANCE
DECEMBER
COLLECTED
OVERPAYMENTS
DECEMBER
YEAR
31, 2014
2015 LEVY
IN 2014
IN 2015
APPLIED
CANCELED
31, 2015
2014
$
19,324.45
$
$
$
19,324.45
$
$
$
$
19,324.45
$
$
$
19,324.45
$
$
$
2015
1,925,482.21
11,089.78
1,873,125.58
133.14
6,105.35
35,028.36
$
19,324.45
$
1,925,482.21
$
11,089.78
$
1,892,450.03
$
133.14
$
6,105.35
$
35,028.36
REF.
A
A-2:A-16
A-2
A-2
A
Collector
A-5
$
1,886,200.03
State of New Jersey
A-8
6,250.00
$
1,892,450.03
ANALYSIS OF 2015 PROPERTY TAX LEVY
TAX YIELD
General Purpose Tax
$
1,923,168.72
Added Taxes (54:4-63.1 et. seq.)
2,313.49
$
1,925,482.21
TAX LEVY
Regional High School Tax (Abstract)
A-14
$
1,206,017.00
County Taxes:
County Tax (Abstract)
A-14
$
342,309.97
Due County for Added Taxes (54:4-63.1 et. seq.)
A-14
412.28
County Tax (Abstract)
A-13
342,722.25
Local Tax for Municipal Purposes (Abstract)
A-2
$
376,067.35
Add: Additional Tax Levied
675.61
376,742.96
$
1,925,482.21
"A-8"
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF DUE STATE OF NEW JERSEY
PER CHAPTER 20, P.L. 1971
REF.
Balance, December 31, 2014
A
$
2,779.76
Increased by:
Deductions Per Tax Duplicate:
Senior Citizens
$
250.00
Veterans
6,000.00
6,250.00
$
9,029.76
Decreased by:
Received From State of New Jersey
A-4
$
6,250.00
Disallowed by Collector - 2015 Taxes
A-5
250.00
Senior and Veterans Deduction Canceled
A-1
2,779.76
9,279.76
Balance, December 31, 2015 (Due to)
A
$
(250.00)
SUMMARY OF 2015 EXEMPTIONS
Senior Citizens and Veterans Deductions
Per Tax Billings
A-7
$
6,250.00
"A-9"
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE
BALANCE
BALANCE
DECEMBER
ACCRUED
DECEMBER
REF.
31, 2014
IN 2015
COLLECTOR
TREASURER
31, 2015
Clerk:
Alcoholic Beverage Licenses
A-2
$
$
3,824.00
$
$
3,824.00
$
Municipal Court:
Fines and Costs
A-2
246.29
3,172.69
3,418.98
Interest and Costs on Taxes
A-2
4,734.69
4,734.69
Consolidated Municipal Property Tax Relief Act
A-2
597.00
597.00
Energy Receipts Tax
A-2
44,974.00
44,974.00
Hotel and Motel Tax
A-2
22,727.28
22,727.28
Cell Tower Rental
A-2
34,300.28
34,300.28
Capital Fund Surplus
A-2
25,000.00
25,000.00
Reserve to Pay Debt Service
A-2
10,235.23
10,235.23
$
246.29
$
149,565.17
$
4,734.69
$
145,076.77
$
REF.
A
A-5
A-4
A
COLLECTED BY
"A-10"
WATER
ANIMAL
TRUST
GENERAL
UTILITY
GRANT
CONTROL
OTHER
CAPITAL
OPERATING
REF.
TOTAL
FUND
FUND
FUND
FUND
FUND
Balance, December 31, 2014:
Due from
A
$
4,238.79
$
$
$
4,235.19
$
$
3.60
Due to
A
19,754.95
17,683.05
2,071.90
Cash Receipts
A-4
12,206.00
4,000.00
8,206.00
Cash Disbursements
A-4
3,035.78
937.14
2,098.64
Balance, December 31, 2015:
Due from
A
$
5,175.93
$
$
937.14
$
4,235.19
$
$
3.60
Due to
A
29,862.31
21,683.05
8,179.26
SCHEDULE OF INTERFUNDS
CURRENT FUND
BOROUGH OF STOCKTON
"A-11"
BOROUGH OF STOCKTON
GRANT FUND
SCHEDULE OF RESERVE FOR GRANTS-UNAPPROPRIATED
BALANCE
BALANCE
DECEMBER
CASH
APPLIED TO
DECEMBER
31, 2014
RECEIPTS
RECEIVABLE
31, 2015
Clean Communities
$
4,000.00
$
4,000.00
$
4,000.00
$
4,000.00
Recycling Tonnage Grant
578.96
578.96
$
4,578.96
$
4,000.00
$
4,578.96
$
4,000.00
REF.
A
A-4
A-18
A
"A-12"
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF 2014 APPROPRIATION RESERVES
BALANCE
BALANCE
DECEMBER
AFTER
PAID OR
BALANCE
31, 2014
TRANSFERS
CHARGED
LAPSED
SALARIES AND WAGES
Governing Body
$
383.24 $
0.24 $
$
0.24
Municipal Clerk
0.64
0.64
0.64
Financial Administration
0.86
0.86
0.86
Administration
0.59
0.59
0.59
Assessment of Taxes
0.61
0.61
0.61
Revenue Administration
43.64
43.64
43.64
Planning Board
36.00
36.00
36.00
Police
0.35
0.35
0.35
Municipal Prosecutor
0.88
0.88
0.88
Municipal Court
290.22
290.22
290.22
Animal Control Services
0.12
0.12
0.12
Building Inspector
19.64
19.64
19.64
OTHER EXPENSES
Governing Body
0.53
0.53
0.53
Municipal Clerk
113.17
113.17
Elections
416.40
0.40
0.40
Financial Administration:
Other Expenses
147.00
147.00
147.00
Computer Support
62.30
524.10
523.60
0.50
Assessment of Taxes
247.96
450.96
450.96
Revenue Administration
385.36
19.36
19.36
Legal Services and Costs
435.00
434.00
1.00
Engineering Services
308.00
308.00
Planning Board:
Other Expenses
166.99
166.99
42.60
124.39
Legal Fees
0.50
325.50
325.50
Engineering Fees
0.50
637.50
637.00
0.50
Insurance:
Liability Insurance
985.86
985.86
985.86
Employee Bonds
479.00
479.00
479.00
Police
150.00
150.00
150.00
Environmental Commission
350.00
350.00
350.00
Recreation
972.00
537.00
537.00
Public Defender
200.00
200.00
200.00
Municipal Court
411.00
600.00
189.00
411.00
Streets and Road Maintenance
0.25
0.25
0.25
Snow Removal
940.00
940.00
Solid Waste Collection
11,867.58
18,364.78
11,963.42
6,401.36
Recycling
2,463.20
1,667.20
1,030.98
636.22
Building and Grounds
1,636.46
6,386.46
1,656.00
4,730.46
Street Lighting
712.76
1,886.46
1,886.17
0.29
Electricity
815.80
831.15
15.35
815.80
Telephone
4,018.59
4,199.78
181.19
4,018.59
Natural Gas
497.76
667.96
170.20
497.76
Public Employee's Retirement System
0.15
0.15
0.15
Social Security System
95.12
95.12
95.12
Unemployment Insurance
250.00
250.00
250.00
Length of Service Award Program
17,200.00
17,200.00
17,200.00
Capital Improvement Fund Lambertville Sewerage Authority
15,222.36
15,222.36
15,222.36
$
60,532.22 $
74,535.83 $
20,416.18 $
54,119.65
REF.
A
A-4
A-1
Balance, December 31, 2014
A-12
$
60,532.22
Encumbrances Payable
A-20
14,003.61
$
74,535.83
"A-13"
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF COUNTY TAXES PAYABLE
REF.
Balance, December 31, 2014
A
$
2015 Tax Levy:
County Taxes
A-1:A-7
$
285,858.78
County Open Space
A-1:A-7
27,833.31
County Library
A-1:A-7
28,617.88
County Share of Added Taxes
A-1:A-7
412.28
342,722.25
$
342,722.25
Decreased by:
Cash Disbursements
A-4
342,309.97
Balance, December 31, 2015
A
$
412.28
"A-14"
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF REGIONAL HIGH SCHOOLTAX PAYABLE
REF.
Balance, December 31, 2014 (Prepaid)
A
$
(1,003.17)
Increased by:
Levy
A-1:A-7
1,206,017.00
$
1,205,013.83
Decreased by:
Cash Disbursements
A-4
1,018,618.00
Balance, December 31, 2015
A
$
186,395.83
"A-15"
Balance, December 31, 2014
A
$
6,150.00
Increased by:
Cash Receipts
A-4
6,150.00
Balance, December 31, 2015
A
$
12,300.00
SCHEDULE OF GRANTS UNAPPROPRIATED
"A-16"
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF PREPAID TAXES
REF.
Balance, December 31, 2014 (2015 Taxes)
A
$
11,089.78
Increased by:
Collection of 2016 Taxes
A-5
2,366.49
$
13,456.27
Decreased by:
Application to 2015 Taxes Receivable
A-7
11,089.78
Balance, December 31, 2015 (2016 Taxes)
A
$
2,366.49
"A-17"
SCHEDULE OF TAX OVERPAYMENTS
Balance, December 31, 2014
A
$
17,042.27
Increased by:
Cash Receipts
A-5
4,120.06
$
21,162.33
Decreased by:
Cash Disbursements
A-4
$
Applied
A-7
133.14
Canceled
A-1
5.12
138.26
Balance, December 31, 2015
A
$
21,024.07
"A-18"
ACCRUED
2015
UNAPPROPRIATED
BUDGET
APPLIED
Clean Communities Program
$
4,000.00
$
4,000.00
Recycling Tonnage Grant
578.96
578.96
$
4,578.96
$
4,578.96
REF.
A-2
A-11
BOROUGH OF STOCKTON
GRANT FUND
SCHEDULE OF GRANTS RECEIVABLE
"A-19"
BOROUGH OF STOCKTON
GRANT FUND
SCHEDULE OF RESERVE FOR GRANTS APPROPRIATED
BALANCE
2015
BALANCE
DECEMBER
BUDGET
DECEMBER
31, 2014
APPROPRIATIONS
31, 2015
Clean Communities Program
$
11,910.54
$
4,000.00
$
15,910.54
Alcohol Education and Rehabilitation Fund
118.16
118.16
Recycling Tonnage Grant
1,075.39
578.96
1,654.35
$
13,104.09
$
4,578.96
$
17,683.05
REF.
A
A-3
A
"A-20"
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF ENCUMBRANCES PAYABLE
REF.
Balance, December 31, 2014
A
$
14,003.61
Increased by:
Charges to Appropriations
A-3
7,409.49
$
21,413.10
Decreased by:
Transferred to Appropriation Reserves
A-12
14,003.61
Balance, December 31, 2015
A
$
7,409.49
"B-1"
BOROUGH OF STOCKTON
TRUST FUND
SCHEDULE OF CASH-TREASURER
REF.
ANIMAL CONTROL
TRUST OTHER
Balance, December 31, 2014
B
$
2,571.30
$
26,747.11
Increased by Receipts:
Dog License Fees
B-2
$
979.34
$
Due from State of New Jersey
B-3
81.00
Various Reserves and Deposits
B-4
167,291.86
1,060.34
167,291.86
$
3,631.64
$
194,038.97
Decreased by Disbursements:
Expenditures under R.S.4:19-15.11
B-2
$
544.00
$
Due from State of New Jersey
B-3
81.00
Various Reserves and Deposits
B-4
170,053.32
625.00
170,053.32
Balance, December 31, 2015
B
$
3,006.64
$
23,985.65
"B-2"
BOROUGH OF STOCKTON
TRUST FUND
SCHEDULE OF RESERVE FOR ANIMAL CONTROL TRUST FUND EXPENDITURES
REF.
Balance, December 31, 2014
B
$
2,526.70
Increased by:
Animal Control Fees Collected
B-1
979.34
$
3,506.04
Decreased by:
Expenditures under R.S.4:19-15.11:
Cash Disbursements
B-1
544.00
Statutory Excess Due Current Fund
B-1
937.14
Balance, December 31, 2015
B
$
2,024.90
LICENSE FEES COLLECTED
YEAR
AMOUNT
2014
$
1,042.30
2013
1,432.60
$
2,474.90
"B-3"
SCHEDULE OF DUE STATE OF NEW JERSEY -
ANIMAL CONTROL FUND
Balance, December 31, 2014
B
$
44.60
Increased by:
Cash Receipts
B-1
81.00
$
125.60
Decreased by:
Cash Disbursements
B-1
81.00
Balance, December 31, 2015
B
$
44.60
"B-4"
BOROUGH OF STOCKTON
TRUST FUND
SCHEDULE OF VARIOUS RESERVES AND DEPOSITS
BALANCE
BALANCE
DECEMBER
CASH
DECEMBER
31, 2014
RECEIPTS
EXPENDED
31, 2015
State Unemployment Insurance
$
14,522.91
$
22.70
$
25.50
$
14,520.11
Stockton Park Auxiliary
906.64
906.64
Payroll Agency
2,394.86
160,165.82
160,165.82
2,394.86
Planning Board Escrow
4,687.51
7,103.34
9,862.00
1,928.85
$
22,511.92
$
167,291.86
$
170,053.32
$
19,750.46
REF.
B
B-1
B-1
B
"B-5"
BOROUGH OF STOCKTON
TRUST FUND
SCHEDULE OF DUE CURRENT FUND
TRUST
ANIMAL
REF.
TOTAL
OTHER
CONTROL
Balance, December 31, 2014:
Due from
B
$
$
$
Due to
B
4,235.19
4,235.19
Decreased by:
Cash Disbursements
B-1
937.14
937.14
Balance, December 31, 2015:
Due to
B
$
5,172.33
$
4,235.19
$
937.14
"C-2"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF CASH - TREASURER
REF.
Balance, December 31, 2014
C
$
252,941.23
Increased by Receipts:
Budget Appropriations:
Capital Improvement Fund
C-9
$
50,000.00
Interfunds
C-10
2,098.64
Miscellaneous Deposits
C-4
1,723.36
Bond Anticipation Notes
C-8
183,313.00
$
237,135.00
490,076.23
Decreased by Disbursements:
Bond Anticipation Notes
C-8
$
183,313.00
Fund Balance
C-1
25,000.00
Contracts Payable
C-14
5,466.94
Miscellaneous Deposits
C-4
10,235.23
Interfunds
C-10
19,432.10
243,447.27
Balance, December 31, 2015
C
$
246,628.96
"C-3"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
ANALYSIS OF CASH
BALANCE
DECEMBER
31, 2015
Capital Improvement Fund
$
190,007.95
Contracts Payable
10,000.00
Grants Receivable
(13,536.67)
Improvement Authorizations Funded as Set Forth On "C-7"
21,683.06
Improvement Authorizations Expended as set forth on "C-5"
(196,187.99)
Interfunds Receivable
(8,179.26)
Miscellaneous Reserves
41,323.51
Capital Fund Balance
57,267.01
Unexpended Proceeds of Bond Anticipation Notes Issued as set forth on "C-5"
144,251.35
$
246,628.96
REF.
C-2
"C-4"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF RESERVE FOR MISCELLANEOUS DEPOSITS
BALANCE
BALANCE
DECEMBER
CASH
CASH
DECEMBER
31, 2014
RECEIPTS
DISBURSEMENTS
31, 2015
Purchase of Recreation Equipment
$
2,215.00
$
$
$
2,215.00
Debt Service
2,973.88
1,723.36
4,697.24
State Aid - Bridge Street
35,000.00
10,235.23
24,764.77
Purchase of Public Safety Equipment
6,635.50
6,635.50
Master Plan Revisions
2,811.00
2,811.00
Prallsville Road Improvements
200.00
200.00
$
49,835.38
$
1,723.36
$
10,235.23
$
41,323.51
REF.
C
C-2
C-2
C
"C-5"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
ANALYSIS OF BALANCE, DECEMBER 31, 2015
BALANCE
BOND
UNEXPENDED
ORDINANCE
DECEMBER
ANTICIPATION
IMPROVEMENT
NUMBER
IMPROVEMENT DESCRIPTION
31, 2015
NOTES
EXPENDITURES
AUTHORIZATIONS
2005-06
Reconstruction of Mill Street
$
104,798.06
$
$
104,798.06
$
2010-02
Improvements to Woolverton Road
34,763.74
34,763.00
0.74
2011-01
Improvements to Old Prallsville Road
148,550.00
148,550.00
2012-08
Road and Drainage Improvements - Wilson Drive
260,000.00
91,389.93
168,610.07
$
548,111.80
$
183,313.00 $
196,187.99
$
168,610.81
REF.
C
C-8
C-3
Improvement Authorizations-Unfunded
C-7
$
312,862.16
Less: Unexpended Proceeds of Bond
Anticipation Notes - 2010-02 and 2011-01
C-3
144,251.35
$
168,610.81
"C-6"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF GRANTS RECEIVABLE
REF.
Balance, December 31, 2014
C
$
13,536.67
Balance, December 31, 2015
C
$
13,536.67
"C-7"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
BALANCE
BALANCE
ORDINANCE
ORDINANCE
DECEMBER 31, 2014
2015
PAID OR
DECEMBER 31, 2015
NUMBER
IMPROVEMENT DESCRIPTION
DATE
AMOUNT
FUNDED
UNFUNDED
AUTHORIZATIONS
CHARGED
FUNDED
UNFUNDED
General Improvements:
2010-02
Woolverton Road
02/08/10
$
140,000.00
$
$
1,548.47 $
$
$
$
1,548.47
2011-01
Old Prallsville Road
04/11/11
280,000.00
143,503.62
800.00
142,703.62
2012-08
Road and Drainage Improvements - Wilson Drive
12/10/12
425,000.00
168,960.07
350.00
168,610.07
2013-02
Codification of Land Use Ordinances
07/08/13
10,000.00
2015-05
Purchase and Installation of Drainex Equipment
08/10/15
20,000.00
20,000.00
4,316.94
15,683.06
2015-06
Authorize Section 20 Costs
08/10/15
6,000.00
6,000.00
6,000.00
$
$
314,012.16
$
26,000.00
$
5,466.94
$
21,683.06
$
312,862.16
REF.
C
C
C-19
C-14
C:C-3
C:C-5
"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, 2014
INCREASED
DECREASED
31, 2015
2010-02
Improvements to Woolverton Street
09/23/2010
9/19/2014
9/18/2015
1.06%
$
35,789.00
$
$
35,789.00
$
9/18/2015
9/16/2016
1.50%
34,763.00
34,763.00
2011-01
Improvements to Old Prallsville Road
09/21/2012
9/19/2014
9/18/2015
1.06%
155,730.00
155,730.00
9/18/2015
9/16/2016
1.50%
148,550.00
148,550.00
$
191,519.00
$
183,313.00
$
191,519.00
$
183,313.00
REF.
C
C-2
C-2
C:C-5
Disbursement
C-2
$
183,313.00
Paid by Budget
8,206.00
$
191,519.00
"C-9"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
REF.
Balance, December 31, 2014
C
$
166,007.95
Increased by:
2015 Budget Appropriation
C-2
50,000.00
$
216,007.95
Decreased by:
Appropriation to Finance
Improvement Authorizations
C-7
26,000.00
Balance, December 31, 2015
C
$
190,007.95
"C-10"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF INTERFUNDS
WATER
CURRENT
CAPITAL
REF.
TOTAL
FUND
FUND
Balance, December 31, 2014:
Due from
C
$
2,071.90
$
2,071.90
$
Due to
C
11,226.10
11,226.10
Receipts
C-2
2,098.64
2,098.64
Disbursements
C-2
19,432.10
8,206.00
11,226.10
Balance, December 31, 2015:
Due from
C
$
8,179.26
$
8,179.26
$
"C-11"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES
TO FUTURE TAXATION FUNDED
REF.
Balance, December 31, 2014
C
$
435,245.13
Decreased by:
N.J.E.I.T. Loans Paid by Budget
C-13
$
30,427.55
Green Trust Loans Paid by Budget
C-12
10,141.92
40,569.47
Balance, December 31, 2015
C
$
394,675.66
"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, 2015
INTEREST
DECEMBER
DECEMBER
IMPROVEMENT DESCRIPTION
ISSUE
ISSUE
DATE
AMOUNT
RATE
31, 2014
DECREASED
31, 2015
Open Space Acquisition
01/07/2005
$
200,000.00
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%
$
117,258.72 $
10,141.92
$
107,116.80
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, 2015
INTEREST
DECEMBER
DECEMBER
IMPROVEMENT DESCRIPTION
ISSUE
ISSUE
DATE
AMOUNT
RATE
31, 2014
DECREASED
31, 2015
Mill Street
11/09/2006
$
300,000.00
08/01/16
$
15,000.00
5.000%
$
$
$
08/01/17-19
15,000.00
4.000%
08/01/20
20,000.00
4.000%
08/01/21-22
20,000.00
4.125%
08/01/23
20,000.00
4.250%
08/01/24
20,000.00
5.000%
08/01/25
20,000.00
4.250%
08/01/26
25,000.00
4.250%
220,000.00
15,000.00
205,000.00
Mill Street
11/09/2006
282,975.00
2016
14,955.52
2017
14,483.49
2018
14,105.87
2019
13,728.23
2020
16,497.49
2021
8,788.26
97,986.41
15,427.55
82,558.86
$
317,986.41
$
30,427.55
$
287,558.86
REF.
C
C-11
C
"C-14"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF CONTRACTS PAYABLE
REF.
Balance, December 31, 2014
C
$
10,000.00
Increased by:
Charges to Improvement Authorizations
C-7
5,466.94
$
15,466.94
Decreased by:
Cash Disbursements
C-2
$
5,466.94
5,466.94
Balance, December 31, 2015
C
$
10,000.00
"C-15"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
BALANCE
ORDINANCE
DECEMBER
NUMBER
IMPROVEMENT DESCRIPTION
31, 2015
2005-06
Reconstruction of Mill Street
$
104,798.06
2010-02
Improvements to Woolverton Street
0.74
2012-08
Road and Drainage Improvements - Wilson Drive
260,000.00
$
364,798.80
"D-4"
BOROUGH OF STOCKTON
WATER UTILITY FUND
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31, 2015
REF.
OPERATING
CAPITAL
Balance, December 31, 2014
D
$
232,808.77
$
Increased by Receipts:
Capital Improvement Fund
D-14
$
$
7,000.00
Collections
D-6
85,328.05
Interfunds
D-9:D-16
240,726.10
40,967.68
Bond Anticipation Notes
D-17
220,284.00
Miscellaneous Revenue Not Anticipated
D-2
435.85
326,490.00
268,251.68
$
559,298.77
$
268,251.68
Decreased by Disbursements:
2015 Appropriations
D-3
$
58,615.99
$
2014 Appropriation Reserves
D-8
3,107.36
Accrued Interest
D-7
2,352.00
Contracts Payable
D-20
29,599.08
Bond Anticipation Notes
D-17
220,284.00
Interfunds
D-9:D-16
252,099.08
18,368.60
316,174.43
268,251.68
Balance, December 31, 2015
D
$
243,124.34
$
"D-5"
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
SCHEDULE OF ENCUMBRANCES PAYABLE
REF.
Balance, December 31, 2014
D
$
3,141.78
Increased by:
Transferred from 2015 Appropriation
D-3
2,605.30
Transferred from Appropriation Reserves
D-8
700.00
$
6,447.08
Decreased by:
Transferred to Appropriation Reserves
D-8
3,141.78
Balance, December 31, 2015
D
$
3,305.30
"D-6"
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
SCHEDULE OF CONSUMER ACCOUNTS RECEIVABLE
REF.
Balance, December 31, 2014
D
$
2,819.53
Increased by:
Water Rents Levied - Net
85,617.87
$
88,437.40
Decreased by:
Collection
D-2:D-4
85,328.05
Balance, December 31, 2015
D
$
3,109.35
"D-7"
SCHEDULE OF ACCRUED INTEREST ON BONDS, NOTES AND LOANS
Balance, December 31, 2014
D
$
1,500.00
Increased by:
Charges to Budget Appropriations
D-3
2,000.00
$
3,500.00
Decreased by:
Cash Disbursements
D-4
$
2,352.00
Canceled
D-1
492.66
2,844.66
Balance, December 31, 2015
D
$
655.34
"D-8"
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
SCHEDULE OF 2014 APPROPRIATION RESERVES
BALANCE
BALANCE
DECEMBER
AFTER
PAID OR
BALANCE
31, 2014
TRANSFERS
CHARGED
LAPSED
Operating:
Salaries and Wages
$
510.73
$
510.73
$
$
510.73
Other Expenses
7,953.96
11,095.74
3,807.36
7,288.38
Contributions to:
Social Security System (O.A.S.I.)
39.88
39.88
39.88
$
8,504.57
$
11,646.35
3,807.36
$
7,838.99
REF.
D
D-4
D-1
Balance, December 31, 2014
D-8
$
8,504.57
$
Encumbrances Payable
D-5
3,141.78
$
11,646.35
"D-9"
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
SCHEDULE OF INTERFUNDS
WATER
CURRENT
CAPITAL
REF.
TOTAL
FUND
FUND
Balance, December 31, 2014:
Due to
D
$
61,967.26
$
3.60
$
61,963.66
Increased by:
Cash Receipts
D-4
240,726.10
240,726.10
Decreased by:
Cash Disbursements
D-4
252,099.08
252,099.08
Balance, December 31, 2015:
Due to
D
$
50,594.28
$
3.60
$
50,590.68
"D-10"
BALANCE
BALANCE
ORDINANCE
ORDINANCE
DECEMBER 31, 2014
2015
PAID OR
DECEMBER 31, 2015
NUMBER
IMPROVEMENT DESCRIPTION
DATE
AMOUNT
FUNDED
UNFUNDED
AUTHORIZATION
CHARGED
FUNDED
UNFUNDED
General Improvements:
2007-11
Purchase and Installation of Equipment
10/29/2007
$
10,000.00
$
4,872.30
$
$
$
4,872.00
$
0.30
$
2008-11
Acquisition and Installation of Capital Equipment
11/10/2008
20,000.00
2,649.91
2,649.43
0.48
2011-05
Acquisition and Installation of Capital Equipment
11/14/2011
15,000.00
15,000.00
15,000.00
2012-04
Pump Station Repairs
03/12/2012
175,000.00
11,226.10
200.00
11,026.10
2014-04
Improvements to Water Utility
08/11/2014
50,000.00
8,373.37
8,291.64
81.73
2015-07
Purchase and Installation of Equipment
09/14/2015
10,000.00
10,000.00
4,457.40
5,542.60
$
19,872.30
$
22,249.38
$
10,000.00
$
20,470.47
$
20,542.90
$
11,108.31
REF.
D
D
D-12
D-20
D
D
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
"D-11"
BALANCE
FIXED
NOTES
BALANCE
ORDINANCE
DATE OF
DECEMBER
CAPITAL
PAID BY
DECEMBER
NUMBER
IMPROVEMENT DESCRIPTION
ORDINANCE
31, 2014
AUTHORIZED
BUDGET
31, 2015
General Improvements:
2006-21
Purchase and Installation of Equipment
12/01/2006
$
10,000.00
$
$
10,000.00
2007-11
Purchase and Installation of Equipment
10/29/2007
10,000.00
10,000.00
2011-05
Purchase and Installation of Equipment
11/14/2011
15,000.00
15,000.00
2014-04
Improvements to Water Utility
08/11/2014
2,500.00
2,500.00
2012-04
Pump Station Repairs
03/12/2012
2,216.00
2,216.00
2015-07
Purchase and Installation of Equipment
09/14/2015
10,000.00
10,000.00
$
37,500.00
$
10,000.00
$
2,216.00
$
49,716.00
REF.
D
D-12
D-17
D
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR DEFERRED AMORTIZATION
INCREASED BY
"D-12"
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
REF.
Balance, December 31, 2014
D
$
21,983.07
Increased by:
2015 Budget Appropriation
D-4
7,000.00
$
28,983.07
Decreased by:
Appropriation to Finance
Improvement Authorizations
D-10
10,000.00
Balance, December 31, 2015
D
$
18,983.07
"D-13"
Balance, December 31, 2014
D
$
402,376.93
Balance, December 31, 2015
D
$
402,376.93
SCHEDULE OF RESERVE FOR AMORTIZATION
"D-14"
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL
BALANCE
BALANCE
DECEMBER
DECEMBER
ACCOUNT
31, 2014
31, 2015
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
$
402,376.93
$
402,376.93
REF.
D
D
"D-15"
BALANCE
BALANCE
ORDINANCE
ORDINANCE
DECEMBER
DECEMBER
NUMBER
IMPROVEMENT DESCRIPTION
DATE
AMOUNT
31, 2014
AUTHORIZED
31, 2015
General Improvements:
2006-21
Purchase and Installation of Equipment
12/01/2006
$
10,000.00
$
10,000.00
$
$
10,000.00
2007-11
Purchase and Installation of Equipment
10/29/2007
10,000.00
10,000.00
10,000.00
2008-11
Acquisition and Installation of Capital Equipment
11/10/2008
20,000.00
20,000.00
20,000.00
2011-05
Acquisition and Installation of Capital Equipment
11/14/2011
15,000.00
15,000.00
15,000.00
2012-04
Pump Station Repairs
03/12/2012
175,000.00
175,000.00
175,000.00
2014-04
Improvements to Water Utility
08/11/2014
50,000.00
50,000.00
50,000.00
2015-07
Purchase and Installation of Equipment
09/14/2015
10,000.00
10,000.00
10,000.00
$
280,000.00
$
10,000.00
$
290,000.00
REF.
D
D-10
D
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
"D-16"
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF INTERFUNDS
GENERAL
WATER
CAPITAL
OPERATING
REF.
TOTAL
FUND
FUND
Balance, December 31, 2014:
Due from
D
$
73,189.76
$
11,226.10
$
61,963.66
Increased by:
Cash Receipts
D-4
40,967.68
11,226.10
29,741.58
Decreased by:
Cash Disbursements
D-4
18,368.60
18,368.60
Balance, December 31, 2015:
Due from
D
$
50,590.68
$
0.00
$
50,590.68
"D-17"
BOROUGH OF STOCKTON
WATER 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, 2014
INCREASED
DECREASED
31, 2015
2012-04
Pump Station Repairs
09/21/2012
09/19/2014
09/18/2015
1.06%
$
175,000.00
$
$
175,000.00
$
09/18/2015
09/16/2016
1.05%
172,784.00
172,784.00
2014-04
Improvements to Water Utility
09/19/2014
09/19/2014
09/18/2015
1.06%
47,500.00
47,500.00
09/18/2015
09/16/2016
1.05%
47,500.00
47,500.00
$
222,500.00
$
220,284.00
$
222,500.00
$
220,284.00
REF.
D
D-4
D-4
D
Paid by Budget
$
2,216.00
Cash Disbursements
C-2
220,284.00
$
222,500.00
"D-18"
BALANCE
BALANCE
DECEMBER
DECEMBER
ITEM
31, 2014
31, 2015
Capital Outlay
$
15,000.00
$
15,000.00
$
15,000.00
$
15,000.00
REF.
D
D
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR MISCELLANEOUS DEPOSITS - CAPITAL OUTLAY
"D-19"
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
BALANCE
DECEMBER
IMPROVEMENT DESCRIPTION
31, 2015
Acquisition and Installation of Capital Equipment
$
20,000.00
$
20,000.00
"D-20"
REF.
Balance, December 31, 2014
D
$
14,085.01
Increased by:
Contracts Issued
D-10
20,470.47
$
34,555.48
Decreased by:
Disbursements
D-4
29,599.08
Balance, December 31, 2015
D
$
4,956.40
SCHEDULE OF CONTRACTS PAYABLE
"E-5"
BOROUGH OF STOCKTON
SEWER UTILITY FUND
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31, 2015
REF.
OPERATING
CAPITAL
Balance, December 31, 2014
E
$
410,676.91
$
-0-
Increased by Receipts:
Consumer Accounts Receivable
E-7
$
277,675.95
$
Miscellaneous
E-3
1,566.50
Interfunds
E-8
17,022.00
15,519.15
Capital Improvement Fund
E-12
17,022.00
296,264.45
32,541.15
$
706,941.36
$
32,541.15
Decreased by Disbursements:
2015 Appropriations
E-4
$
200,528.15
$
2014 Appropriation Reserves
E-10
20,773.75
Interfunds
E-8:E-14
15,519.15
17,022.00
Accrued Interest
E-6
13,774.95
Refund of Prior Years Revenue
E-1
250,596.00
32,541.15
Balance, December 31, 2015
E
$
456,345.36
$
-0-
"E-6"
BOROUGH OF STOCKTON
SEWER UTILITY OPERATING FUND
SCHEDULE OF ACCRUED INTEREST
REF.
Balance, December 31, 2014
E
$
4,936.94
Increased by:
Charges to 2015 Budget
E-4
19,800.00
$
24,736.94
Decreased by:
Cash Disbursements
E-5
$
13,774.95
Canceled
E-1
6,665.68
20,440.63
Balance, December 31, 2015
E
$
4,296.31
"E-7"
SCHEDULE OF CONSUMER ACCOUNTS RECEIVABLE
Balance, December 31, 2014
E
$
10,873.50
Increased by:
Sewer Use Charges Levied - Net
281,907.17
$
292,780.67
Decreased by:
Collections
E-5
277,675.95
Balance, December 31, 2015
E
$
15,104.72
"E-8"
BOROUGH OF STOCKTON
SEWER UTILITY OPERATING FUND
SCHEDULE OF INTERFUNDS
SEWER
CAPITAL
REF.
TOTAL
FUND
Balance, December 31, 2014:
Due to
E
$
115,209.33 $
115,209.33
Receipts
E-5
17,022.00
17,022.00
Disbursements
E-5
15,519.15
15,519.15
Balance, December 31, 2015:
Due to
E
$
116,712.18
$
116,712.18
"E-9"
BOROUGH OF STOCKTON
SEWER UTILITY OPERATING FUND
SCHEDULE OF ENCUMBRANCES PAYABLE
REF.
Balance, December 31, 2014
E
$
20,773.75
Increased by:
Transfer from 2015 Appropriations
E-4
17,210.37
$
37,984.12
Decreased by:
Transfer to Appropriation Reserves
E-10
20,773.75
Balance, December 31, 2015
E
$
17,210.37
"E-10"
BOROUGH OF STOCKTON
SEWER UTILITY OPERATING FUND
SCHEDULE OF 2014 APPROPRIATION RESERVES
BALANCE
BALANCE
DECEMBER
AFTER
PAID OR
BALANCE
31, 2014
ENCUMBRANCES
TRANSFERS
CHARGED
LAPSED
Operating:
Salaries and Wages
$
86.48
$
$
86.48
$
$
86.48
Other Expenses
20,773.75
20,773.75
20,773.75
Social Security
65.93
65.93
65.93
$
152.41
$
20,773.75
$
20,926.16
$
20,773.75
$
152.41
REF.
E
E-5
E-1
Balance, December 31, 2014
E-10
$
152.41
Encumbrances Payable
E-9
20,773.75
$
20,926.16
"E-11"
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, 2015
DECEMBER
DECEMBER
IMPROVEMENT DESCRIPTION
ISSUE
ISSUE
RATE
DATE
AMOUNT
31, 2014
DECREASED
31, 2015
N.J. Environmental Infrastructure Trust Loan
10/15/2000
$
495,000.00
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%
08/01/19
35,000.00
5.25%
08/01/20
40,000.00
205,000.00
30,000.00
175,000.00
N.J. Environmental Infrastructure Fund Loan
10/15/2000
488,624.00
0.00%
08/01/16
15,065.83
39,684.32
24,618.49
15,065.83
$
244,684.32
$
54,618.49
$
190,065.83
REF.
E
E-17
E
"E-12"
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
Balance, December 31, 2014
E
$
113,088.00
Increased by:
Cash Receipts
E-5
17,022.00
$
130,110.00
Decreased by:
Cash Disbursements
E-5
20,000.00
Balance, December 31, 2015
E
$
110,110.00
"E-13"
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
BALANCE
BALANCE
ORDINANCE
ORDINANCE
DECEMBER
DECEMBER
NUMBER
IMPROVEMENT DESCRIPTION
DATE
AMOUNT
31, 2014
AUTHORIZED
31, 2015
2008-12
Acquisition and Installation of Capital Equipment
11/10/2008
$
20,000.00
$
20,000.00
$
$
20,000.00
2015-01
Acquisition and Installation of Capital Equipment
02/09/2015
10,000.00
10,000.00
10,000.00
2015-08
Acquisition and Installation of Capital Equipment
09/14/2015
10,000.00
10,000.00
10,000.00
$
20,000.00
$
20,000.00
$
40,000.00
REF.
E
E-15
E
"E-14"
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF INTERFUNDS
SEWER
OPERATING
REF.
TOTAL
FUND
Balance, December 31, 2014:
Due from
E
$
115,209.33
$
115,209.33
Receipts
E-5
15,519.15
15,519.15
Disbursements
E-5
17,022.00
17,022.00
Balance, December 31, 2015:
Due from
E
$
116,712.18
$
116,712.18
"E-15"
ORDINANCE
2015
PAID OR
NUMBER
IMPROVEMENT DESCRIPTION
DATE
AMOUNT
FUNDED
UNFUNDED
AUTHORIZATION
CHARGED
FUNDED
UNFUNDED
2008-12
Acquisition and Installation of Capital Equipment
11/10/2008
$
20,000.00
$
$
20,000.00
$
$
$
$
20,000.00
2015-01
Acquisition and Installation of Capital Equipment
02/9/2015
10,000.00
10,000.00
9,549.25
450.75
2015-08
Acquisition and Installation of Capital Equipment
09/14/2015
10,000.00
10,000.00
5,969.90
4,030.10
$
$
20,000.00
$
20,000.00
$
15,519.15
$
4,480.85
$
20,000.00
REF.
E
E
E-13
E-5
E
E
ORDINANCE
DECEMBER 31,2014
BALANCE
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
BALANCE
DECEMBER 31,2015
"E-16"
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL
BALANCE
BALANCE
DECEMBER
DECEMBER
ACCOUNT
31, 2015
31, 2014
Miscellaneous Equipment
$
4,612.00
$
4,612.00
Improvement Authorizations:
Construction of Sanitary Sewer System:
1974
1,200,000.00
1,200,000.00
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
$
2,879,656.48
$
2,879,656.48
REF.
E
E
"E-17"
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR AMORTIZATION
REF.
Balance, December 31, 2014
E
$
2,481,001.33
Increased by:
Bonds Paid by Budget
E-19
$
27,442.48
Loans Paid by Budget
E-11
54,618.49
82,060.97
Balance, December 31, 2015
E
$
2,563,062.30
"E-18"
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR DEFERRED AMORTIZATION
REF.
Increased by:
Transferred from Capital Improvement Fund
E-15
$
20,000.00
Balance, December 31, 2015
E
$
20,000.00
"E-19"
Balance, December 31, 2014 and
December 31, 2015
E
$
3,000.00
SCHEDULE OF RESERVE FOR CAPITAL IMPROVEMENTS
"E-20"
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF BONDS PAYABLE
DATE OF
AMOUNT OF
OUTSTANDING
BALANCE
BALANCE
ORIGINAL
ORIGINAL
DECEMBER 31, 2015
DECEMBER
DECEMBER
IMPROVEMENT DESCRIPTION
ISSUE
ISSUE
DATE
AMOUNT
31, 2014
DECREASED
31, 2015
Sewer Improvements
1979
$
591,000.00
12/02/16
$
28,814.61
12/02/17
30,255.34
12/02/18
31,768.10
12/02/19
33,569.82
$
151,850.35
$
27,442.48
$
124,407.87
REF.
E
E-17
E
"E-21"
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
BALANCE
DECEMBER
IMPROVEMENT DESCRIPTION
31, 2015
Repair and Improvement of the Wastewater Collection System
$
2,120.48
Acquisition and Installation of Capital Equipment
20,000.00
$
22,120.48
THIS PAGE INTENTIONALLY LEFT BLANK
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 FEDERAL AWARDS
AND STATE FINANCIAL ASSISTANCE
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL
AWARDS AND STATE FINANCIAL ASSISTANCE
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, 2015, 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 29, 2016. 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. Also, a Statement of General Fixed Assets
has been omitted from the financial statements.
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.
SCC
SUPLEE, CLOONEY & COMPANY
C E R T I F I E D P U B L I C A C C O U N T A N T S
308 East Broad Street, Westfield, New Jersey 07090-2122
Telephone 908-789-9300 Fax 908-789-8535
E-mail info@scnco.com
31
32
SCHEDULE 1
BOROUGH OF STOCKTON
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED DECEMBER 31, 2015
CUMULATIVE
FEDERAL
GRANT
EXPENDITURES
FEDERAL GRANTOR/PASS THROUGH
CFDA
GRANT PERIOD
AWARD
2015
2015
DECEMBER
GRANTOR/PROGRAM TITLE
NUMBER
STATE ACCOUNT NUMBER
FROM
TO
AMOUNT
RECEIVED
EXPENDITURES
31, 2015
Department of Transportation
Highway Planning and Construction - Passed
Through the New Jersey Department of
Transportation
Old Prallsville Road
20.205
2011-078-6320-001-AK3
$
155,937.00 $
$
$
124,268.88
Totals
$
$
$
124,268.88
Continuous
33
SCHEDULE 2
BOROUGH OF STOCKTON
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
YEAR ENDED DECEMBER 31, 2015
CUMULATIVE
GRANT
2015
EXPENDITURES
GRANT PERIOD
AWARD
FUNDS
2015
DECEMBER
STATE GRANTOR/PROGRAM TITLE
STATE ACCOUNT NUMBER
FROM
TO
AMOUNT
RECEIVED
EXPENDITURES
31, 2015
Department of Environmental Protection
Clean Communities Program
4900-765-042-4900-004-V42Y-6020
$
4,000.00 $
$
$
89.46
Clean Communities Program
4900-765-042-4900-004-V42Y-6020
4,000.00
Clean Communities Program
4900-765-042-4900-004-V42Y-6020
4,000.00
Clean Communities Program
4900-765-042-4900-004-V42Y-6020
4,000.00
Clean Communities Program
4900-765-042-4900-004-V42Y-6020
4,000.00
4,000.00
Recycling Tonnage Grant
4900-752-042-4900-001-V42Y-6020
408.11
Recycling Tonnage Grant
4900-752-042-4900-001-V42Y-6020
537.34
Recycling Tonnage Grant
4900-752-042-4900-001-V42Y-6020
129.94
Recycling Tonnage Grant
4900-752-042-4900-001-V42Y-6020
578.96
Total
$
4,000.00 $
$
89.46
p
y
GRAND TOTAL
$
4,000.00 $
$
89.46
Continuous
Continuous
Continuous
Continuous
Continuous
Continuous
Unappropriated
Unappropriated
Continuous
34
BOROUGH OF STOCKTON
NOTES TO THE SCHEDULES OF EXPENDITURES OF
FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE
YEAR ENDED DECEMBER 31, 2015
NOTE 1. GENERAL
The accompanying schedules of expenditures of financial awards and financial assistance
present the activity of all federal and state financial assistance programs of the Borough of
Stockton, County of Hunterdon, New Jersey. All federal and state financial assistance received
directly from federal or state agencies, as well as federal financial assistance passed through
other government agencies is included on the Schedule of Expenditures of Federal Awards and
State Financial Assistance.
NOTE 2. BASIS OF ACCOUNTING
The accompanying schedules of expenditures of financial assistance are 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 FEDERAL AND STATE FINANCIAL REPORTS
Amounts reported in the accompanying schedules of expenditures agree with the amounts
reported in the related federal and state financial reports.
NOTE 4. RELATIONSHIP TO FINANCIAL STATEMENTS - REGULATORY BASIS
Amounts reported in the accompanying schedules agree with amounts reported in the
Borough’s regulatory basis financial statements. These amounts are reported in the Current
Fund, Grant Fund, General Capital Fund or Trust Other Fund. Reconciliations of revenues and
expenses are presented on the following page.
35
NOTE 4. RELATIONSHIP TO FINANCIAL STATEMENTS - REGULATORY BASIS (CONTINUED)
Revenues:
State
Total
Grant Fund
$
4,000.00
$
4,000.00
$
4,000.00
$
4,000.00
NOTE 5. OTHER
Matching contributions expended by the Borough in accordance with terms of the various grants
are not reported in the accompanying schedules.
36
THIS PAGE INTENTIONALLY LEFT BLANK
PART III
BOROUGH OF STOCKTON
STATISTICAL DATA
LIST OF OFFICIALS
COMMENTS AND RECOMMENDATIONS
YEAR ENDED DECEMBER 31, 2015
COMPARATIVE STATEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE - CURRENT FUND
YEAR 2015
YEAR 2014
AMOUNT
%
AMOUNT
%
REVENUE AND OTHER INCOME REALIZED
Fund Balance Utilized
$
163,000.00
7.01% $
163,000.00
7.16%
Miscellaneous-from other than Local Property
Tax Levies
258,886.52
11.13%
186,547.38
8.20%
Collection of Delinquent Taxes and Tax Title Liens
19,324.45
0.83%
26,909.25
1.18%
Collection of Current Tax Levy
1,884,348.50
81.03%
1,899,113.44
83.46%
TOTAL INCOME
$
2,325,559.47
100.00% $
2,275,570.07
100.00%
EXPENDITURES
Budget Expenditures:
Municipal Purposes
$
561,440.20
26.59% $
535,290.35
25.42%
County Taxes
342,309.97
16.21%
335,638.57
15.94%
School Taxes
1,206,017.00
57.12%
1,233,198.00
58.57%
Other
1,462.14
0.07%
1,378.17
0.07%
TOTAL EXPENDITURES
$
2,111,229.31
100.00% $
2,105,505.09
100.00%
Excess in Revenue
$
214,330.16
$
170,064.98
Fund Balance, January 1
308,028.64
300,963.66
$
522,358.80
$
471,028.64
Less: Utilization as Anticipated Revenue
163,000.00
163,000.00
Fund Balance, December 31
$
359,358.80
$
308,028.64
37
COMPARATIVE STATEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE-WATER UTILITY FUND
YEAR 2015
YEAR 2014
AMOUNT
%
AMOUNT
%
REVENUE AND OTHER INCOME REALIZED
Fund Balance Utilized
$
13,000.00
$
Collection of Water Rents
85,328.05
84,705.31
85.47%
Miscellaneous-from other than Water Rents
8,767.50
14,402.40
14.54%
TOTAL INCOME
$
107,095.55
100.00% $
99,107.71
100.00%
EXPENDITURES
Budget Expenditures:
Operating
$
84,660.00
$
68,034.00
85.05%
Deferred Charges and Statutory Expenditures
1,400.00
1,256.00
1.57%
Debt Service
4,215.00
6,200.00
7.75%
Capital Improvements
7,000.00
4,500.00
5.63%
TOTAL EXPENDITURES
$
97,275.00
100.00% $
79,990.00
100.00%
Excess in Revenue to Fund Balance
$
9,820.55
$
19,117.71
Fund Balance, January 1
157,695.16
138,577.45
$
167,515.71
$
157,695.16
Utilization as Anticipated Revenue
13,000.00
Fund Balance, December 31
$
154,515.71
$
157,695.16
38
COMPARATIVE STATEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE-SEWER UTILITY FUND
YEAR 2015
YEAR 2014
AMOUNT
%
AMOUNT
%
REVENUE AND OTHER INCOME REALIZED
Fund Balance Utilized
$
26,954.30
$
Collection of Sewer Rents
277,675.95
88.71%
284,477.20
91.05%
Miscellaneous - from other than Sewer Rents
8,384.59
2.68%
27,978.95
8.95%
TOTAL INCOME
$
313,014.84
100.00% $
312,456.15
100.00%
EXPENDITURES
Budget Expenditures:
Operating
$
167,500.00
53.86% $
133,537.50
46.98%
Deferred Charges and Statutory Expenditures
6,609.50
2.13%
1,456.04
0.51%
Debt Service
101,860.97
32.75%
105,461.78
37.10%
Capital Improvements
35,022.00
11.26%
17,022.00
5.99%
Other
26,792.55
9.43%
TOTAL EXPENDITURES
$
310,992.47
100.00% $
284,269.87
100.00%
Excess in Revenue
$
2,022.37
$
28,186.28
Adjustments to Income before Fund Balance:
Expenditures Included Above which are by Statute
Deferred Charges to Budget of Succeeding Year
5,259.50
$
2,022.37
$
33,445.78
Fund Balance, January 1
274,863.98
241,418.20
$
276,886.35
$
274,863.98
Utilization as Anticipated Revenue
26,954.30
Fund Balance, December 31
$
249,932.05
$
274,863.98
39
COMPARATIVE SCHEDULE OF TAX RATE INFORMATION
2015
2014
2013
Tax Rate
$2.065
$2.059
$2.122
Appointment of Tax Rate:
Municipal
$0.402
$0.382
$0.366
County
0.307
0.300
0.302
County Open Space
0.030
0.029
0.030
County Library
0.031
0.030
0.031
District School
0.702
Regional School
1.295
1.318
0.691
Assessed Valuations:
2015
$
93,131,630.00
2014
$
93,562,795.00
2013
$
93,646,236.00
COMPARISON OF TAX LEVIES AND COLLECTION CURRENTLY
A study of this tabulation could indicate a possible trend in future tax levies. A decrease
in the percentage of current collection could be an indication of a probable increase in future tax
levies.
Cash
Percentage of
Year
Tax Levy
Collections
Collection
2015
$
1,925,485.20
$
1,884,348.50
97.86%
2014
1,926,457.98
1,899,113.44
98.58%
2013
1,987,173.10
1,956,887.71
98.48%
Currently
40
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
2015
$
35,028.36
$
35,028.36
1.82%
2014
19,324.45
19,324.45
1.00%
2013
26,910.35
26,910.35
1.35%
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
2015
$
85,617.87
$
85,328.05
2014
84,740.32
84,705.31
2013
83,073.80
83,916.30
*
Includes Collection of Prior Year Levies
COMPARISON OF SEWER UTILITY LEVIES
CASH
YEAR
LEVY
COLLECTIONS
2015
$
281,907.20
$
277,675.95
2014
279,309.16
284,477.20
2013
277,088.60
274,419.89
*
Includes Collection of Prior Year Levies
41
COMPARATIVE SCHEDULE OF FUND BALANCES
UTILIZED
BALANCE
IN BUDGET OF
YEAR
DECEMBER 31
SUCCEEDING YEAR
2015
$
357,169.93
$
163,000.00
2014
308,028.64
163,000.00
Current Fund
2013
300,963.66
163,000.00
2012
337,291.72
163,000.00
2011
272,645.47
124,084.67
2015
$
154,515.71
$
13,195.00
2014
157,695.16
13,000.00
Water Utility Operating Fund
2013
138,577.45
-0-
2012
113,553.07
-0-
2011
88,252.06
-0-
2015
$
249,932.05
$
22,800.00
2014
274,863.98
26,954.30
Sewer Utility Operating Fund
2013
241,418.20
-0-
2012
157,779.88
-0-
2011
148,654.75
-0-
42
OFFICIALS IN OFFICE AND SURETY BONDS
The following officials were in office during the period under audit:
AMOUNT
NAME
TITLE
OF BOND
NAME OF SURETY
Timothy Nemeth
Mayor
Nic Messina
Council President
Donald Vandegrift
Councilman
Aaron Lipsen
Councilman
Tony Grecco
Councilman
Adam Juncosa
Councilman
Kathryn Steffanelli
Councilwoman
Donna Griffiths
Tax/Utilities Collector,
$80,000.00
Selective Insurance Company
Deputy Clerk
Michele Hovan
Borough Clerk/Administrator,
Registrar of Vital Statistics
Diane McDaniel
Chief Municipal Finance Officer
$250,000.00
Selective Insurance Company
Michelle Trivigno
Assessor
Edward Martin
Magistrate
Cindy Hooven
Court Administrator
All bonds were examined and were properly executed.
The Borough does not maintain blanket bond coverage for individuals not specifically covered by a separate bond.
43
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 did not indicate that any bids were requested by public advertising in 2015.
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 2015 for the following professional
services:
Borough Auditor
Borough Engineer
Borough Attorney
Planning Board Attorney
Bond Counsel
44
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 1, 2015 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 2015.
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 2015.
The following comparison is made of the number of tax title liens receivable on
December 31st of the last three years:
YEAR
NUMBER OF LIENS
2015
None
2014
None
2013
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
45
OTHER COMMENTS
Interfunds
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.
Other Fund Vouchers
The Borough has not maintained a complete encumbrance accounting system in
accordance with the minimum requirements as promulgated by the Division of Local
Government Services. We noted that several purchase orders are processed as confirming
orders. This is where goods have been received or services have been rendered prior to the
issuance of a purchase order. In effect, the controls that minimize the possibility of
overexpenditures and unauthorized purchases are not in operation.
46
RECOMMENDATIONS
*That the Fixed Assets Ledger be updated for all additions and deletions.
*That the Borough issue a purchase order prior to the purchase of any goods or services.
*Prior Year Recommendations
47
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