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Executive Summary
The Borough of Stockton's financial statements for the year ended December 31, 2017, were audited by Suplee, Clooney & Company, Certified Public Accountants. The audit included an independent auditor's report on the financial statements and supplementary schedules, as well as an examination of internal controls over financial reporting and compliance with government auditing standards. The audit covered various individual funds including the Current Fund, Trust Fund, General Capital Fund, Water Utility Fund, and Sewer Utility Fund, plus the General Fixed Assets Account Group. The auditor's report, dated August 10, 2018, provides opinions on the regulatory basis financial statements and supplementary information.
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Document Text
--- Document: 2017 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, 2017
BOROUGH OF STOCKTON
IN DEX
PARTI
Independent Auditor's Report
Independent Auditor's Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
Financial Statements - Statutory Basis
Current Fund:
1-3
4-5
EXHIBITS
Balance Sheets - Regulatory Basis
"A"
Statements of Operations and Change in Fund Balance - Regulatory Basis for the
Year Ended December 31, 2017
"A-1"
Statement of Revenues - Regulatory Basis for the Year Ended December 31, 2017
"A-2"
Statement of Expenditures - Regulatory Basis for the Year Ended December 31, 2017
"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, 2017
"D-1"
Statement of Revenues - Operating Fund - Regulatory Basis for the Year Ended
December 31, 2017
"D-2"
Statement of Expenditures - Operating Fund - Regulatory Basis for the Year Ended
December 31, 2017
"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, 2017
"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, 2017
"E-3"
Statement of Expenditures - Operating Fund - Regulatory Basis for the Year Ended
December 31, 2017
"E-4"
BOROUGH OF STOCKTON
I N DEX (CONTINUED)
General Fixed Assets Account Group::
Balance Sheets - Regulatory Basis
Notes to Financial Statements
Current Fund:
Schedule of Cash-Treasurer
Schedule of Cash-Collector
Supplementary Schedules - All Funds
Schedule of Due Current Fund - Grant Fund
Schedule of Taxes Receivable and Analysis of Property Tax Levy
Schedule of Due State of New Jersey Per Chapter 20, P.L. 1971
Schedule of Revenue Accounts Receivable
Schedule of lnterfunds
Schedule of Petty Cash Funds
Schedule of 2016 Appropriation Reserves
Schedule of County Taxes Payable
Schedule of Regional High School Taxes Payable
Schedule of Reserve for Grants-Unappropriated
Schedule of Prepaid Taxes
Schedule of Tax Overpayments
Schedule of Grants Receivable - Grant Fund
Schedule of Reserve for Grants Appropriated - Grant Fund
Schedule of Encumbrances Payable
Schedule of Deferred Charges
Trust Fund:
Schedule of Cash-Treasurer
Schedule of Reserve for Animal Control Trust Fund Expenditures
Schedule of Due State of New Jersey - Animal Control Fund
Schedule of Various Reserves and Deposits
Schedule of Due Current Fund
EXHIBITS
"Flt
PAGES
6-32
EXHIBITS
"A-4"
"A-5"
"A-6"
"A-7"
"A-8"
"A-9"
"A-10"
"A-11"
"A-12"
"A-13"
"A-14"
"A-15"
"A-16"
"A-17"
"A-18"
"A-19"
"A-20"
"A-21"
"B-1"
"B-2"
"B-3"
"B-4"
"B-5"
General Capital Fund:
Schedule of Cash-Treasurer
Analysis of Cash
BOROUGH OF STOCKTON
I ND EX (CONTINUED)
Schedule of Reserve for Miscellaneous Deposits
Schedule of Deferred Charges to Future Taxation-Unfunded
Schedule of Grants Receivable
Schedule of Improvement Authorizations
Schedule of Bond Anticipation Notes
Schedule of Capital Improvement Fund
Schedule of lnterfunds
Schedule of Deferred Charges to Future Taxation Funded
Schedule of Green Trust Loans Payable
Schedule of New Jersey Environmental Infrastructure Trust Loans Payable
Schedule of Reserve for Receivables
Schedule of Contracts Payable
Schedule of Bonds and Notes Authorized But Not Issued
Water Utility Fund:
Schedule of Cash-Treasurer for the Year Ended December 31, 2017
Schedule of Encumbrances Payable - Operating Fund
Schedule of Consumer Accounts Receivable - Operating Fund
Schedule of Accrued Interest on Bonds, Notes and Loans - Operating Fund
Schedule of 2016 Appropriation Reserves - Operating Fund
Schedule of lnterfunds - Operating Fund
Schedule of Improvement Authorizations - Capital Fund
Schedule of Reserve for Deferred Amortization - Capital Fund
Schedule of Capital Improvement Fund - Capital Fund
Schedule of Reserve for Amortization - Capital Fund
Schedule of Fixed Capital - Capital Fund
Schedule of Fixed Capital Authorized and Uncompleted - Capital Fund
Schedule of lnterfunds - Capital Fund
Schedule of Bond Anticipation Notes - Capital Fund
Schedule of Reserve for Miscellaneous Deposits - Capital Outlay - Capital Fund
Schedule of Contracts Payable - Capital Fund
Schedule of Bonds and Notes Authorized But Not Issued - Capital Fund
EXHIBITS
"C-2"
"C-3"
"C-4"
"C-5"
"C-6"
"C-7"
"C-8"
"C-9"
"C-10"
"C-11"
"C-12"
"C-13"
"C-14"
"C-15"
"C-16"
"D-4"
"D-5"
"D-6"
"D-7"
"D-8"
"D-9"
"D-10"
"D-11"
"D-12"
"D-13"
"D-14"
"D-15"
"D-16"
"D-17"
"D-18"
"D-19"
"D-20"
BOROUGH OF STOCKTON
I N D EX (CONTINUED)
Sewer Utility Fund:
Schedule of Cash-Treasurer for the Year Ended December 31, 2017
Schedule of Accrued Interest - Operating Fund
Schedule of Consumer Accounts Receivable - Operating Fund
Schedule of lnterfunds - Operating Fund
Schedule of Encumbrances Payable - Operating Fund
Schedule of 2016 Appropriation Reserves - Operating Fund
Schedule of New Jersey Environmental Infrastructure Loan Receivable - Capital Fund
Schedule of Capital Improvement Fund - Capital Fund
Schedule of Fixed Capital Authorized and Uncompleted - Capital Fund
Schedule of lnterfunds - Capital Fund
Schedule of Improvement Authorizations - Capital Fund
Schedule of Fixed Capital - Capital Fund
Schedule of Reserve for Amortization - Capital Fund
Schedule of Reserve for Deferred Amortization - Capital Fund
Schedule of Reserve for Capital Improvement - Capital Fund
Schedule of Bonds Payable - Capital Fund
Schedule of Reserve for Sewer Overpayments - Capital Fund
Schedule of Bond Anticipation Notes - Capital Fund
Schedule of Bonds and Notes Authorized But Not Issued - Capital Fund
PART II
Statistical Data
Officials in Office and Surety Bonds
General Comments and Recommendations
EXHIBITS
"E-5"
"E-6"
"E-7"
"E-8"
"E-9"
"E-10"
"E-11"
"E-12"
"E-13"
"E-14"
"E-15"
"E-16"
"E-17"
"E-18"
"E-19"
"E-20"
"E-21"
"E-22"
"E-23"
PAGES
33-38
39
40-43
BOROUGH OF STOCKTON
PARTI
INDEPENDENT AUDITOR'S REPORT ON
AUDIT OF FINANCIAL STATEMENTS
AND SUPPLEMENTARY SCHEDULES AND DATA
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
FINANCIAL STATEMENTS - REGULATORY BASIS -ALL FUNDS
NOTES TO FINANCIAL STATEMENTS- REGULATORY BASIS
SUPPLEMENTARY SCHEDULES - ALL FUNDS
YEAR ENDED DECEMBER 31, 2017 AND 2016
SuPLEE, CLOONEY & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
308 East Broad Street, Westfield, New Jersey 07090-2122
Telephone 908-789-9300
Fax 908-789-8535
E-mail info@scnco.com
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and Members
of the Borough Council
Borough of Stockton
County of Hunterdon
Stockton, New Jersey 08559
Report on the Financial Statements
We have audited the accompanying balance sheets - regulatory basis of the various
individual funds of the Borough of Stockton, as of December 31, 2017 and 2016, 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, 2017, and the
related notes to the financial statements, which collectively comprise the Borough's regulatory
financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with the regulatory basis of accounting prescribed by the Division of
Local Government Services, Department of Community Affairs, State of New Jersey.
Management is also responsible for the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are free from
material misstatements, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these regulatory financial statements
based on our audit. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America, the audit requirements prescribed by the Division of
Local Government Services, Department of Community Affairs, State of New Jersey (the
"Division"), and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.
1
SuPLEE, CLOONEY & COMPANY
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the regulatory financial statements.
The procedures selected depend on the
auditor's judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error.
In making those risk assessments, the
auditor considers internal control relevant to the 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, 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, 2017 and
2016, 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, 2017.
Opinion on Regulatory Basis of Accounting
In our opinion, the regulatory financial statements referred to above present fairly, in all
material respects, the regulatory basis balances sheets of the various individual funds and
account groups as of December 31, 2017 and 2016, the regulatory basis statement of
operations and changes in fund balance for the years then ended and the regulatory basis
statement of revenues and expenditures and changes in fund balance for the year ended
December 31, 2017 in accordance with the basis of financial reporting prescribed by the
Division of Local Government Services, Department of Community Affairs, State of New Jersey
as described in Note 1.
2
SuPLEE, CLOONEY & CoMPANY
Other Matters
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements
that collectively comprise the Borough of Stockton's regulatory financial statements.
The
supplementary information and data listed in the table of contents as required by the Division of
Local Government Services, Department of Community Affairs, State of New Jersey are
presented for purposes of additional analysis and are not a required part of the regulatory
financial statements.
The supplemental information and data listed above and also listed in the table of
contents are the responsibility of management and were derived from and relates directly to the
underlying accounting and other records used to prepare the regulatory financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the
regulatory financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to
prepare the regulatory financial statements or to the regulatory financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the supplemental information and data listed in the
table of contents are fairly stated, in all material respects, in relation to the regulatory financial
statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report
dated August 10, 2018 on our consideration of the Borough of Stockton's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on internal control over financial reporting or on
compliance.
That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Borough of Stockton's internal control over
financial reporting and compliance.
CERTIFldtzrlt<AC~NT~~
REGISTERED MUNICIPAL ACCOUNTANT NO. 439
August 10, 2018
3
SuPLEE, CLOONEY & CoMPANY
CERTIFIED PUBLIC ACCOUNTANTS
308 East Broad Street, Westfield, New Jersey 07090-2122
Telephone 908-789-9300
Fax 908-789-8535
E-mail info@scnco.com
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Honorable Mayor and Members
of the Borough Council
Borough of Stockton
County of Hunterdon
Stockton, New Jersey 08559
We have audited, in accordance with the auditing standards generally accepted in the
United States of America, the audit requirements prescribed by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey and the
standards applicable to financial audits contained in Government Auditing Standards issued by
the Comptroller General of the United States, the regulatory financial statements of the various
individual funds and the account group of the Borough of Stockton, as of and for the year ended
December 31, 2017, 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 10, 2018.
Our report disclosed that, as described in Note 1 to the financial
statements, the Borough of Stockton prepares its financial statements on a basis of accounting
prescribed by the Division of Local Government Services, Department of Community Affairs,
State of New Jersey, that demonstrates compliance with a modified accrual basis and the
budget laws of the State of New Jersey, which is a comprehensive basis of accounting other
than U.S. generally accepted accounting principles.
Internal Control Over Financial Reporting
In planning and performing our audit of the regulatory financial statements, we
considered the Borough's control over financial reporting (internal control) to determine the audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinions
on the financial statements but not for the purpose of expressing an opinion on the effectiveness
of the Borough's internal control.
Accordingly, we do not express an opinion on the
effectiveness of Borough's internal control.
4
SuPLEE, CLoONEY & CoMPANY
A deficiency in internal control exists when the design or operation of a control does not
allow management or employees, in the normal course of performing their assigned functions,
to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the Borough of Stockton's financial statements will not
be prevented, or detected and corrected on a timely basis.
A significant deficiency is a
deficiency, or a combination of deficiencies, in internal control that is less severe than a material
weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control that
might be material weaknesses or significant deficiencies. Given these limitations, during our
audit we did not identify any deficiencies in internal control that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified. However,
we noted certain immaterial matters involving internal control that we have reported to the
Borough of Stockton in the General Comments and Recommendations Section of the audit
report.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Borough's financial
statements are free from material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with
which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
However, there were immaterial instances of
noncompliance which are discussed in Part II, General Comments and Recommendations
Section of the audit report.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control
and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the Borough of Stockton's internal control or on compliance. This report is an
integral part of an audit performed in accordance with Government Auditing Standards in
considering the Borough of Stockton's internal control and compliance. Accordingly, this
communication is not suitable for any other purpose.
REGISTERED MUNICIPAL ACCOUNTANT NO. 439
August 10, 2018
5
CURRENT FUND
"A"
SHEET#1
BOROUGH OF STOCKTON
CURRENT FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
REF.
31.2017
31.2016
ASSETS
Cash-Treasurer
A-4
$
458,121.52
$
554,804.71
$
458, 121.52
$
554,804.71
Receivables and other Assets with Full Reserves:
Delinquent Property Taxes Receivable
A-7
$
29,708.84
$
12,878.09
Revenue Accounts Receivable
A-9
258.44
189.37
lntertunds Receivable
A-10
758.59
436.07
Prepaid Regional High School Taxes
A-14
194,457.00
A
$
225,182.87
$
13,503.53
Deferred Charges:
Special Emergency Authorization
A-21
$
$
11,153.13
$
$
11,153.13
$
683,304.39
$
579,461.37
Grant Fund:
Due Current Fund
A-6
$
33,070.51
$
26,513.59
$
33,070.51
$
26,513.59
$
716,374.90
$
605,974.96
The accompanying Notes to the Financial Statements are an integral part of this statement.
BOROUGH OF STOCKTON
CURRENT FUND
BALANCE SHEETS - REGULATORY BASIS
LIABILITIES, RESERVES AND FUND BALANCE
Uabflities:
Appropriation Reserves
Encumbrances Payable
Prepaid Taxes
Tax Overpayments
lnterfunds Payable
Reserve for Grants - Unappropriated
County Taxes-Payable
Reserve for Receivables and other Assets
Fund Balance
Grant Fund:
Reserve for Grants Appropriated
A-3:A-12
A-20
A-16
A-17
A-10
A-15
A-13
A
A-1
A-19
$
$
$
$
BALANCE
DECEMBER
31,2017
69,338.75
16,012.78
56,769.53
1,791.00
33,526.01
12,300.00
497.53
190,235.60
225,182.87
267,885.92
683,304.39
-------
33,070.51
$-------
33,070.51
$
716,374.90
=======
$
$
$
$
$
$
SHEET#2
BALANCE
DECEMBER
31.2016
62,502.04
13,239.62
7,501.36
822.48
37,210.22
12,300.00
133,575.72
13,503.53
432,382.12
579,461.37
26,513.59
26,513.59
605,974.96
The accompanying Notes to the Financial Statements are an integral part of this statement.
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENTS OF OPERATIONS
AND CHANGE IN FUND BALANCE- REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31. 2017
REF.
YEAR 2017
REVENUE AND OTHER INCOME
Fund Balance Utilized
A-1 :A-2
$
165,000.00
Miscellaneous Revenue Anticipated
A-2
148,768.61
Receipts from Delinquent Taxes
A-2
12,843.00
Receipts from Current Taxes
A-2
1,895,243.59
Non-Budget Revenue
A-2
15,752.40
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
A-12
35,299.47
Tax Overpayments Canceled
A-17
165.77
lnterfunds Returned
Total Income
$
2,273,072.84
EXPENDITURES
Budget Appropriations:
Operations within "CAPS":
Operating
A-3
$
416,948.00
Deferred Charges and Statutory Expenditures
A-3
33,903.13
Operations Excluded from "CAPS":
Operating
A-3
16, 157.51
Capital Improvements
A-3
28,000.00
Municipal Debt Service
A-3
57,624.15
County Taxes
A-13
346,365.20
County Share of Added Taxes
A-13
497.53
Regional High School Tax
A-14
1,178,294.00
Reserve for Prepaid Regional High School Tax
194,457.00
lnterfunds Advanced
322.52
Total Expenditures
$
2,272,569.04
Excess in Revenue
$
503.80
Adjustments to Income before Fund Balance:
Expenditures Included above which are by Statute
Deferred Charges to the Budget of the Succeeding Year
A-21
Statutory Excess to Fund Balance
$
503.80
Fund Balance
Balance, January 1
A
432,382.12
$
432,885.92
Decreased by:
Utilization as Anticipated Revenue
A-1:A-2
165,000.00
Fund Balance, December 31
A
$
267,885.92
$
$
$
$
$
$
$
$
The accompanying Notes to the Financial Statements are an integral part of this statement.
YEAR 2016
163,000.00
414,154.51
35,028.36
1,911,090.91
9,347.93
37,415.24
20,442.46
4,739.86
2,595,219.27
429,856.27
22,002.50
239,648.54
71,153.13
59,499.41
347,682.36
1,198,318.00
2,368, 160.21
227,059.06
11,153.13
238,212.19
357,169.93
595,382.12
163,000.00
432,382.12
"A-2"
SHEET#1
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31. 2017
ANTICIPATED
EXCESS
OR
REF.
BUDGET
REALIZED
(DEFICIT)
Fund Balance Anticipated
A-1
$
165,000.00
$
165,000.00
$
Miscellaneous Revenues:
Licenses:
Alcoholic Beverages
A-9
$
3,824.00
$
3,824.00
$
Other
A-2
1,500.00
2,784.00
1,284.00
Fees and Permits:
Other
A-9
1,000.00
1,826.50
826.50
Fines:
Municipal Court
A-9
5,000.00
6,294.73
1 ,294.73
Interest and Costs on Taxes
A-9
5,000.00
3,425.59
(1,574.41)
Consolidated Municipal Property Tax Relief Act
A-9
369.00
369.00
Energy Receipts Tax
A-9
45,202.00
45,202.00
Garden State Trust Fund
A-9
6,150.00
6,150.00
Cell Tower Rental
A-9
35,000.00
37,791.08
2,791.08
Hotel and Motel Tax
A-9
21,000.00
22,517.79
1,517.79
Reserve to Pay Debt
A-9
10,306.41
10,306.41
Clean Communities Program
A-18
4,000.00
4,000.00
Recycling Tonnage Grant
A-18
4,277.51
4,277.51
A-1
$
142,628.92
$
148,768.61
$
6,139.69
Receipts from Delinquent Taxes
A-7
10,000.00
12,843.00
2,843.00
Amount to be Raised by Taxation for Support
of Municipal Budget:
Local Tax for Municipal Purposes
A-2:A-7
398,618.75
503,086.86
104,468.11
Budget Totals
$
716,247.67
$
829,698.47
$
113,450.80
Non-Budget Revenue
A-1:A-2
15,752.40
15,752.40
$
716,247.67
$
845,450.87
$
129,203.20
REF.
A-3
The accompanying Notes to the Financial Statements are an integral part of this statement.
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
REF.
Allocation of Current Tax Collections:
Collections Realized on a Cash Basis
A-1 :A-7
Allocated to:
School and County Taxes
Balance for Support of Municipal Budget Appropriations
Add: Appropriation-"Reserve for Uncollected Taxes"
A-3
Amount for Support of Municipal Budget Appropriations
A-2
Other Licenses
A-9
Less Refunds
A-4
A-2
Analysis of Non-Budget Revenues
Miscellaneous Revenue Not Anticipated:
Treasurer:
LOSAP Reimbursement
Cable Franchise Fee
ATT Fee
Miscellaneous
Administrative Fee - Senior Citizen and Veterans
A-4
Excess Animal Control Fees
A-10
A-2
"A-2"
SHEET #2
$
1,895,243.59
1,525,156.73
370,086.86
133,000.00
$
503,086.86
$
3, 134.00
350.00
$
2,784.00
$
6,939.05
2,572.45
4,589.95
1,218.43
110.00
$
15,429.88
322.52
$
15,752.40
The accompanying Notes to the Financial Statements are an integral part of this statement.
OPERATIONS WITHIN "CAPS"
GENERAL GOVERNMENT
Governing Body:
Salaries and Wages
Other Expenses
Municipal Clerk:
Salaries and Wages
Other Expenses
Elections:
Other Expenses
Financial Administration:
Salaries and Wages
Other Expenses
Audit Services
Computer Support:
Other Expenses
Administration & Executive:
Salaries and Wages
Revenue Administration:
Salaries and Wages
Other Expenses
Assessment of Taxes:
Salaries and Wages
Other Expenses
Public Buildings & Grounds:
Other Expenses
Legal Services:
Other Expenses
Engineering Services:
Other Expenses
Planning Board:
Salaries and Wages
Other Expenses
Legal fees
Planner Fees
Engineering Fees
Zoning Board:
Salaries and Wages
Insurance (NJSA 40A:4-45.3(00))
Liability Insurance
Worker Compensation Insurance
Flood Insurance
Employee Bonds
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENT OF EXPENDITURES· REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31. 2017
APPROPRIATIONS
BUDGET AFTER
PAID OR
BUDGET
MODIFICATION
CHARGED
$
10,096.00 $
10,096.00
$
9,982.11
1, 100.00
1,100.00
547.00
45,748.00
45,748.00
45,747.79
3,800.00
3,800.00
2,861.10
500.00
500.00
345.73
18,215.00
18,215.00
18,210.48
1,500.00
1,500.00
1,492.60
18,250.00
18,250.00
17,875.00
8,500.00
8,500.00
8,173.53
6,272.00
6,272.00
6,271 69
16,000.00
16,000.00
8,738.92
2,200.00
2,200.00
2,199.58
6,004.00
6,004.00
6,003.08
550.00
550.00
59.34
12,000.00
12,000.00
8,074.94
7,000.00
7,000.00
2,101.07
18,500.00
18,500.00
16,314.77
3,328.00
3,328.00
3,327.58
1,000.00
1,000.00
408.23
800.00
800 00
784 00
500.00
500.00
409.50
500.00
500.00
5,306.00
5,706.00
5,705.56
30,200.00
30,200.00
16,224.00
17,000.00
17,000.00
16,930.00
4,100.00
4,100.00
4,056.00
1,300.00
1,300.00
700.00
$
The accompanying Notes to the Financial Statements are an integral part of this statement.
RES!;RVED
113.89
553.00
0.21
938.90
154.27
4.52
7.40
375.00
326.47
0.31
7,261.08
0.42
0.92
490.66
3,925.06
4,898.93
2,185.23
0.42
591.77
16.00
90.50
500.00
0.44
6,976.00
70.00
44.00
600.00
$
"A-3"
SHEET#1
CANCELED
7,000.00
PUBLIC SAFETY
Police:
Salaries and Wages
Other Expenses
Aid to Volunteer Fire Company
Municipal Prosecutor:
Salaries and Wages
P!,JBLIC WORKS
Street and Road Maintenance:
Other Expenses
Snow Removal:
Other Expenses
Solid Waste Collection
Other Expenses
Flood Insurance Program:
Other Expenses
Recycling:
Other Expenses
Environmental Commission:
Other Expenses
HEAL TH AND HUMAN SERVICES
Board of Health:
Other Expenses
Animal Control Services:
Salaries and Wages
Other Expenses
PARKS AND RECREATrON
Recreation:
Other Expenses
MUNICIPAL COURT
Municipal Court:
Salaries and Wages
Other Expenses
Public Defender (P.L. 1997, c.256):
Other Expenses
UNCLASSIFIED
Electricity
Street Lighting
Telephone
Natural Gas
TOTAL QPERATIONS WITHIN "CAPS"
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31. 2017
APPROPRIATIONS
BUDGET AFTER
PAID OR
BUDGET
MODIFICATION
CHARGED
$
5,273.00
$
5,273.00
$
5,272.59
150.00
150.00
20,000.00
20,000.00
20,000.00
1,960.00
1,980.00
1,976.97
17,500.00
17,100.00
1,377.00
19,500.00
19,500.00
(2,024.61)
76,000.00
76,000.00
66,493.93
2,000.00
2,000.00
690.38
13,500.00
13,500.00
12,571.76
350.00
350.00
1,000.00
1,000.00
200.00
865.00
885.00
883.93
400.00
400.00
11,500.00
11,500.00
11,439.99
7,841.00
7,841.00
7,840.28
4,500.00
4,500.00
3,587.00
200.00
200.00
100.00
100.00
93.74
13,000.00
13,000.00
12,288.55
5,000.00
5,000.00
2,366.33
2,000.00
2,000.00
1,126.15
$
444,948.00
$
444,948.00
$
349,729.59
$
$
The accompanying Notes to the Financial Statements are an integral part of this statement.
RE~J;;RVED
0.41
150.00
1.03
4,723.00
21,524.61
1,506.07
1,309.62
928.24
350.00
800.00
1.07
400.00
60.01
0.72
913.00
200.00
6.26
711.45
2,633.67
873.85
67,218.41
$
$
"A-3"
SHEET#2
CANCELLED
11,000.00
10,000.00
28,000.00
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2017
APPROPRIATIONS
BUDGET AFTER
PAID OR
BUDGET
MODIFICATION
CHAflliEO
DEFERRED CHARGES AND STATUTORY EXPENDITURES-
flill)NICIPAL WITHlfi''CAE§'.'
Statutory Expenditures
Contribution to
Public Employee's Retirement System
$
12,950.00
$
12,950.00
$
12,807.00
Social Security System
9,500.00
9,500.00
9,274.24
Unemployment Insurance
300.00
300.00
TOTAL DEFERRED CHARGES AND STATUTORY
EXPENDITURES-MUNIC_IPAL WITHIN "CAPS"
$
22,750.00
$
22,750.00
$
22,081.24
TOTAL GENERAL APPROPRIATIONS FOR MUNICIPAL
PURPOSES WITHIN "CAPS"
$
467.698.00
$
467,698.00
$
371,810.83
QPERATIONS EXCLUDED FROM "CAPS"
Length of Service Award Program
$
4,500.00
$
4,500.00
$
4,350.00
Council on Affordable Housing
1,000 00
1,000 00
TOTAL OTHER OPERATIONS - EXCLUDED FROM "CAPS"
$
5,500.00
$
5,500.00
$
4,350.00
INTERLOCAL AGREEMENTS
Township of Delaware Building Inspector
Salaries and Wages
$
2,080.00
$
2,080.00
$
2,078.42
Other Expenses
300.00
300.00
TOTAL INTERLOCAL AGREEMENTS - EXCLUDED FROM "CAP $
2,380.00
$
2,380.00
$
2,078.42
STATE AND FEDERAL PROGRAMS OFF-SET BY REVENUES
Clean Communities Program (N.JSA 40A.4-87 + $4,000 00)
$
4,000.00
$
4,000.00
$
4,000.00
Recycling Tonnage Grant (N.J.SA 40A4-87 + $4,277.51)
4,277.51
4,277.51
4,277.51
TOTAL PUBLIC AND PRIVATE PROGRAMS
$
8,277.51
$
8,277.51
$
8,277.51
TOTAL OPERATIONS - EXCLUDED FROM "CAPS"
$
16, 157.51
$
16,157.51
$
14,705.93
CAPITAL IMPROVEMENTS-EXCLUDED FROM "CAPS"
Capital Improvement Fund
$
28,000.00
$
28,000.00
$
28,000.00
TOTAL CAPITAL IMPROVEMENTS EXCLUDED FROM "CAPS"
$
28,000.00
$
28,000.00
$
28,000.00
MUNICIPAL DEBT SERVICE-EXCLUDE,D FROM "CAPS"
Payment of Bond Anticipation Notes and Capital Notes
$
8,205. 13
$
8,205. 13
$
8,205.00
Interest on Notes
2,101.28
2,101.28
2,093.70
Loan Repayments for Principal and Interest-Green Trust
12,436.63
12,436.63
12,436.63
Loan Repayments for Principal and Interest-NJ Environmental
37,495.99
37,495 99
34,888.82
IOTAL MUNICIPAL DEBT SERVl(E-E2<CLUDED FROM "CAPS~ $
60,239.03
$
60,239.03
$
57,624.15
$
$
$
$
$
$
$
$
$
$
$
$
$
$
The accompanying Notes to the Financial Statements are an integral part of this statement
"A-3"
SHEElJQ
RESERVED
CANCEL~J;_Q
143.00
$
225.76
300.00
668.76
$
67,887. 17
$
28,000.00
150.00
$
1,000.00
1.150.00
$
1 58
$
300.00
301.58
$ -----
$
$
1,451.58
$
$
$
$
0.13
7.58
2,607. 17
$
2,614.88
BOROUGH OF STOCKTON
CURRENT FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31 2017
APPROPRIATIONS
BUDGET AFTER
PAID OR
BUDGET
MODIFICATION
CHARGED
DEFERRED CHARGES-MUNICIPAL EXCLUDED FROM "CAPS"
Emergency Authorization
$
11,153.13 $
11,153.13 $
11,153.13
TOTAL GENERAL APPROPRIATIONS FOR MUNICIPAL
PURPOSES EXCLUD!;;D FROM "CAPS"
$
115,549.67 $
115,549.67
$
111,483.21
SUB-TOTAL GENERAL APPROPRIATIONS
$
583,247.67
$
583,247.67
$
483,294.04
RESERVE FOR UNCOLLECTED TAXES
133,000.00
133,000.00
133,000.00
TOTAL GENERAL APPROPRIATIONS
$
716,247.67
$
716,247.67
$
616,294.04
REF.
A-2
A-3
A-1
Encumbrances Payable
A-20
$
16,012.78
Reserve for Uncollected Taxes
A-2
133,000.00
Deferred Charges
A-21
11,153.13
Reserve for Grants Appropriated
A-19
8,277.51
Disbursements
A-4
447,850.62
$
616,294.04
$
$
$
$
The accompanying Notes to the Financial Statements are an integral part of this statement.
R!;;SERVED
$
1,451.58 $
69,338.75
$
69,338.75
$
A:A-1
"A-3"
SHEET#4
CANCELLED
2,614.88
30,614.88
30,614.88
TRUST FUND
BOROUGH OF STOCKTON
TRUST FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
REF.
31,2017
31.2016
ASSETS
Animal Control Trust Fund:
Cash
B-1
$
2,842.99
$
2,520.47
Due From State of New Jersey
B-3
1.20
1.20
2,844.19
2,521.67
Other Funds:
Cash
B-1
$
26,177.57
$
23,720.65
$
29,021.76
$
26,242.32
LIABILITIES, RESERVES AND FUND BALANCES
Animal Control Trust Fund:
Due Current Fund
B-5
$
758.59
$
436.07
Reserve for Animal Control Fund Expenditures
B-2
2,085.60
2,085.60
2,844.19
2,521.67
Other Funds:
Various Reserves and Deposits
B-4
$
26,177.57
$
23,720.65
26,177.57
23,720.65
$
29,021.76
$
26,242.32
The accompanying Notes to the Financial Statements are an integral part of this statement.
GENERAL CAPITAL FUND
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
BALANCE SHEETS-REGULATORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
REF.
31.2017
31,2016
ASSETS
Cash
C-2
$
486,247.08
$
221,387.46
Deferred Charges to Future Taxation - Funded
C-11
314,337.16
354,374.37
Deferred Charges to Future Taxation - Unfunded
C-5
430,822.58
839,906.67
lnterfunds Receivable
C-10
1,014.88
11,256.01
Grants Receivable
C-6
146,186.12
235,536.67
$
1,378,607 .82
$
1,662,461.18
LIABILITIES. RESERVES AND FUND BALANCE
Bond Anticipation Notes
C-8
$
466,901.00
$
175, 107.00
Contracts Payable
C-15
15,708.04
10,479.50
Green Acres Loan Payable
C-12
86,217.31
96,771.03
N.J. Environmental Trust Loans Payable
C-13
228,119.85
257,603.34
Improvement Authorizations:
Funded
C-7
20,492.81
23,337.93
Unfunded
C-7
132,848.81
600,519.04
Capital Improvement Fund
C-9
259,507.95
231,507.95
Reserve for:
Grants Receivable
C-14
132,649.45
222,000.00
Miscellaneous Reserves
C-4
32,561.97
42,868.38
Fund Balance
C-1
3,600.63
2,267.01
$
1,378,607.82
$
1,662,461.18
The accompanying Notes to the Financial Statements are an integral part of this statement.
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
STATEMENT OF FUND BALANCE- REGULATORY BASIS
Balance, December 31, 2016
c
$
2,267.01
Increased by:
Improvement Authorizations Canceled
C-7
1,333.62
Balance, December 31, 2017
c
$
3,600.63
=========
The accompanying Notes to the Financial Statements are an integral part of this statement.
THIS PAGE INTENTIONALLY LEFT BLANK
WATER UTILITY FUND
0011
BOROUGH OF STOCKTON
WATER UTILITY FUND
BALANCE SHEETS- REGULATORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
REF.
31.2017
31,2016
ASSETS
Operating Fund:
Cash - Treasurer
D-4
$
252,853.89
$
266,016.31
$
252,853.89
$
266,016.31
Receivables and Inventories with Full Reserves:
Consumer Accounts Receivable
D-6
$
1,224.25
$
1,114.08
D
$
1,224.25
$
1,114.08
Total Operating Fund
$
254,078.14
$
267,130.39
Capital Fund:
Fixed Capital
D-14
$
402,376.93
$
402,376.93
Fixed Capital Authorized and Uncompleted
D-15
315,000.00
305,000.00
lnterfunds Receivable
D-16
30,965.48
51,246.32
Total Capital Fund
$
748,342.41
$
758,623.25
$
1,002,420.55
$
1,025,753.64
LIABILITIES. RESERVES AND FUND BALANCE
Operating Fund:
Liabilities:
Appropriation Reserves
D-3:D-8
$
21,903.65
$
34,560.55
Encumbrances Payable
D-5
4,331.17
2,480.74
Accrued Interest on Bonds and Loans
D-7
760.09
655.34
lnterfunds Payable
D-9
31,525.64
51,806.48
$
58,520.55
$
89,503.11
Reserve for Receivables and Inventory
D
1,224.25
1,114.08
Fund Balance
D-1
194,333.34
176,513.20
Total Operating Fund
$
254,078.14
$
267,130.39
Capital Fund:
Improvement Authorizations:
Funded
D-10
$
12,069.58
$
33, 156.42
Unfunded
D-10
2,459.45
10,548.45
Capital Improvement Fund
D-12
17,983.07
10,983.07
Bond Anticipation Notes
D-17
214,218.00
218,069.00
lnterfunds Payable
D-16
559.38
559.38
Reserve for:
Contracts Payable
D-19
12,894.00
999.00
Amortization
D-13
402,376.93
402,376.93
Deferred Amortization
D-11
80,782.00
66,931.00
Capital Outlay
D-18
5,000.00
15,000.00
Total Capital Fund
$
748,342.41
$
758,623.25
$
1,002,420.55
$
1,025, 753.64
The accompanying Notes to the Financial Statements are an integral part of this statement.
"D-1"
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
ST A TEMENTS OF OPERATIONS
AND CHANGE IN FUND BALANCE-REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31. 2017
YEAR ENDED
YEAR ENDED
DECEMBER
DECEMBER
REF.
31, 2017
31, 2016
REVENUE AND OTHER INCOME REALIZED
Fund Balance Utilized
D-1
$
13,000.00
$
13,195.00
Rents
D-2
84,309.65
86,224.17
Other Credits to Income:
Miscellaneous Revenue Not Anticipated
D-2
487.46
473.29
Unexpended Balance of Appropriation Reserves
D-8
31,140.03
32,752.12
TOTAL INCOME
$
128,937.14
$
132,644.58
EXPENDITURES
Operating
D-3
$
83,000.00
$
83,449.00
Statutory Expenditures and Deferred Charges
D-3
1,550.00
1,501.00
Debt Service
D-3
6,567.00
5,502.09
Capital Improvements
D-3
7,000.00
7,000.00
TOTAL EXPENDITURES
$
98,117.00
$
97,452.09
Excess in Revenue
$
30,820.14
$
35, 192.49
Fund Balance
Balance, January 1
D
176,513.20
154,515.71
$
207,333.34
$
189,708.20
Utilization as Anticipated Revenue
D-1
13,000.00
13, 195.00
Balance, December 31
D
$
194,333.34
$
176,513.20
The accompanying Notes to the Financial Statements are an integral part of this statement.
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
STATEMENT OF REVENUES - REGULA TORY BASIS
FOR THE YEAR ENDED DECEMBER 31. 2017
Fund Balance Anticipated
Water Use Charges
Miscellaneous Revenue Not Anticipated
ANALYSIS OF REALIZED REVENUE
Miscellaneous-Collector
Interest on Delinquent Accounts
REF.
D-1 :D-6
D-1 :D-2
D-3
ANTICIPATED
$
13,000.00
$
85,117.00
$
98117.00
$
$
REALIZED
13,000.00
84,309.65
487.46
97 797.11
124.92
362.54
D-2:0-4
$ ===4=8==7·;:46=
$
$
The accompanying Notes to the Financial Statements are an integral part of this statement.
EXCESS
OR
(DEFICIT)
(807.35)
487.46
{319.89}
Operating:
Salaries and Wages
Other Expenses
Total Operating
Capital Improvements:
Capital Improvement Fund
Total Capital Improvements
Debt Services:
Interest on Notes
Total Debt Services
Statutory Expenditures:
Contributions to:
Social Security System (OAS.I.)
Total Statutory Expenditures
Disbursements
Encumbrances Payable
Accrued Interest
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
STATEMENT OF EXPENDITURES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
APPROPRIATIONS
BUDGET AFTER
BUDGET
MODIFICATION
$
23,000.00
$
23,000.00
60,000.00
60,000.00
$
83,000.00
$
83,000.00
$
7,000.00
$
7,000.00
$
7,000.00
$
7,000.00
$
6,567.00
$
6,567.00
$
6,567.00
$
6,567.00
$
1,550.00
$
1,550.00
$
1,550.00
$
1,550.00
$
98,117.00
$
98,117.00
REF.
D-2
D-4
D-5
D-7
$
$
$
$
$
$
$
$
$
$
$
The accompanying Notes to the Financial Statements are an integral part of this statement.
"D-3' 1
EXPENDED
PAID OR
~HARGED
RESERVED
18,332.39
$
4,667.61
42,911.37
17,088.63
61,243.76
$
21,756.24
7,000.00
$
7,000.00
$
6,567.00
$
6,567.00
$
1,402.59
$
147.41
1,402.59
$
147.41
76,213.35
$
21,903.65
D-1
D:D-1
69,866.18
3,631.17
2,716.00
76,213.35
THIS PAGE INTENTIONALLY LEFT BLANK
SEWER UTILITY FUND
SHEET #1
BOROUGH OF STOCKTON
SEWER UTILITY FUND
BALANCE SHEETS - REGULATORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
ASSETS
REF.
31,2017
31 2016
Operating Fund:
Cash - Treasurer
E-5
$
590,616.05
$
542,107.18
lnterfund Receivable
E-8
560.16
560.16
$
591, 176.21
$
542,667 34
Receivables and Inventories with Full Reserves:
Consumer Accounts Receivable
EE-7
$
8,476.98
$
7,000.05
$
8,476.98
$
7,000.05
Total Operating Fund
$
599,653.19
$
549,667.39
Capital Fund
Fixed Capital
E-16
$
2,879,65648
$
2,879,65648
Fixed Capital Authorized and Uncompleted
E-13
70,000.00
70,000.00
lnterfunds Receivable
E-14
186,862.18
141,712.18
Total Capital Fund
$
3, 136,518.66
$
3,091,368.66
$
3,736,171.85
$
3,641,036.05
The accompanying Notes to the Financial Statements are an integral part of this statement
SHEET#2
BOROUGH OF STOCKTON
SEWER UTILITY FUND
BALANCE SHEETS- REGULATORY BASIS
BALANCE
BALANCE
DECEMBER
DECEMBER
LIABILITIES, RESERVES AND FUND BALANCE
REF.
31. 2017
31,2016
Operating Fund:
Liabilities:
Budget Appropriations
E-4:E-10
$
50,786.58
$
79,786.15
Encumbrances Payable
E-9
558.63
4,622.00
lnterfunds Payable
E-8
186,862.18
141,712.18
Sewer Overpayments
E-21
601.10
Accrued Interest
E-6
2,660.34
4,296.31
$
240,867.73
$
231,017.74
Reserve for Receivables
E
8,476.98
7,000.05
Fund Balance
E-1
350,308.48
311,649.60
Total Operating Fund
$
599,653.19
$
549,667.39
Capital Fund:
Improvement Authorizations:
Funded
E-15
$
480.85
$
4,480.85
Unfunded
E-15
44,150.00
50,000.00
Serial Bonds Payable:
E-20
65,337.92
95,593.26
N.J. Environmental Infrastructure Loan Payable
E-11
110,000.00
145,000.00
Bond Anticipation Notes Payable
E-22
30,000.00
Reserve for:
Amortization
E-17
2,702,198.08
2,636,942.74
Deferred Amortization
E-18
20,000.00
20,000.00
Capital Improvements
E-19
3,000.00
3,000.00
Capital Improvement Fund
E-12
160,110.00
135,110.00
Fund Balance
E-2
1,241.81
1,241.81
Total Capital Fund
$
3,136,518.66
$
3,091,368.66
$
3, 736, 171.85
$
3,641,036.05
The accompanying Notes to the Financial Statements are an integral part of this statement.
BOROUGH OF STOCKTON
SEWER UTILITY FUND
STATEMENTS OF OPERATIONS
AND CHANGE IN FUND BALANCE - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
REF.
YEAR 2017
REVENUE AND OTHER INCOME REALIZED
Fund Balance Utilized
E-3
$
22,800.00
Sewer Service Charges
E-3
274,408.99
Miscellaneous
E-3
1,905.71
Other Credits to Income:
Unexpended Balance of Appropriation Reserves
E-10
58,429.39
TOTAL INCOME
$
357,544.09
EXPENDITURES
Operating
E-4
$
173,352.50
Statutory Expenditures and Deferred Charges
E-4
1,800.00
Capital Improvement
E-4
50,000.00
Debt Service
E-4
70,932.71
TOTAL EXPENDITURES
$
296,085.21
Excess in Revenue
$
61,458.88
Fund Balance
Balance, January 1
E-1
311,649.60
$
373, 108.48
Decreased by:
Utilization as Anticipated Revenue
E-1
22,800.00
Balance, December 31
E
$
350,308.48
YEAR 2016
$
22,800.00
285,999.35
1,668.65
66,145.31
$
376,613.31
$
168,450.00
1,503.81
37,329.39
84,812.56
$
292,095.76
$
84,517.55
249,932.05
$
334,449.60
22,800.00
$
311,649.60
The accompanying Notes to the Financial Statements are an integral part of this statement.
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
STATEMENT OF FUND BALANCE- REGULATORY BASIS
Balance, December 31, 2016
and December 31, 2017
E
$
1,241.81
========
The accompanying Notes to the Financial Statements are an integral part of this statement.
BOROUGH OF STOCKTON
SEWER UTILITY OPERATING FUND
STATEMENT OF REVENUES - REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
Fund Balance Utilized
Sewer Charges
Miscellaneous
ANALYSIS OF REALIZED REVENUE
Miscellaneous
Interest on Delinquent Accounts
Miscellaneous
REF.
E-1
E-1:E-7
E-1 :E-3
E-4
E-3:E-5
ANTICIPATED
$
22,800.00
280,000.00
$
302,800.00
$
$
$
REALIZED
22,800.00
274,408.99
1,905.71
299,114.70
1,288.77
616.94
$
1,905.71
======
EXCESS
OR
(DEFICIT)
$
(5,591.01)
1,905.71
$
(3,685.30)
The accompanying Notes to the Financial Statements are an integral part of this statement.
Operating:
Salaries and Wages
Other Expenses
Total Operating
Capital Improvements:
Capital Improvement Fund
Capital Outlay
Lambertville Sewerage Authority
Total Capital Improvements
Debt Service:
Payment of Bond Principal
Interest on Bonds
New Jersey Environmental Infrastructure Loan:
Payment of Bond Principal
Interest on Bonds
Total Debt Service
Deferred Charges and Statutory Expenditures:
Contributions to:
Social Security System (OAS.I.)
Total Statutory Expenditures
Disbursements
Accounts Payable
Accrued Interest
"E-4"
BOROUQH OF STOCKTON
SEWER UTILITY OPERATING FUND
STATEMENT OF EXPENDITURES- REGULATORY BASIS
FOR THE YEAR ENDED DECEMBER 31, 2017
APPROPRIATIONS
EXPENDED
BUDGET AFTER
PAID OR
BUDGET
MODIFICATION
CHARGED
RESERVED
CANCELLED
$
22,000.00
$
22,000.00
$
18,332.39
$
3,667.61
$
151,352.50
151,352.50
118,233.51
33,118.99
$
173,352.50
$
173,352.50
$
136,565.90
$
36,786.60
$
$
25,000.00
$
25,000.00
$
25,000.00
$
$
10,000.00
10,000.00
10,000.00
15,000.00
15,000.00
11,397.43
3,602.57
$
50,000.00
$
86,397.43
$
36,397.43
$
13,602.57
$
$
30,255.34
$
30,255.34
$
30,255.34
$
$
4,779.66
4,779.66
737.44
4,042.22
35,000.00
35,000.00
35,000.00
7,612.50
7,612.50
4,939.93
2,672.57
$
77,647.50
$
77,647.50
$
70,932.71
$
$
6,714.79
$
1,800.00
$
1,800.00
$
1,402.59
$
397.41
$
$
1,800.00
$
1,800.00
$
1,402.59
$
397.41
$
$
302,800.00
$
339,197.43
$
245,298.63
$
50,786.58
$
6,714.79
REF.
E-3
E-1
E:E-1
E-5
$
239,062.63
E-9
558.63
E-6
5,677.37
$
245,298.63
The accompanying Notes to the Financial Statements are an integral part of this statement.
THIS PAGE INTENTIONALLY LEFT BLANK
GENERAL FIXED ASSETS ACCOUNT GROUP
BOROUGH OF STOCKTON
GENERAL FIXED ASSETS ACCOUNT GROUP
BALANCE SHEETS - REGULA TORY BASIS
DECEMBER
DECEMBER
31,2016
31,2017
(as restated)
General Fixed Assets:
Land
$
1,643,525.00
$
1,643,525.00
Buildings and Building Improvements
233,700.00
233,700.00
TOTAL GENERAL FIXED ASSETS
$
1,877,225.00
$
1,877,225.00
Investment in General Fixed Assets
$
11877,225.00
$
1,877,225.00
The accompanying Notes to the Financial Statements are an integral part of this statement.
NOTES TO FINANCIAL STATEMENTS
NOTE 1:
BOROUGH OF STOCKTON
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2017 AND 2016
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 (GASS) 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:
6
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.
7
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.
lnterfunds - lnterfund 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.
lnterfund
receivables in the other funds are not offset by reserves. GAAP does not
require the establishment of an offsetting reserve.
8
NOTE 1:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C.
Basis of Accounting (Continued)
General Fixed Assets - N.J.A.C. 5:30-5.6, Accounting for Governmental
Fixed Assets, as promulgated by the Division of Local Government
Services, which differs in certain respects from generally accepted
accounting principles, requires the inclusion of a statement of general
fixed assets of the Borough as part of its basic financial statements.
General fixed assets are defined as nonexpendable personal and real
property having a physical existence, a useful life of more than one year
and an acquisition cost of $300.00 or more per unit.
Public domain
(''infrastructure") general fixed assets consisting of certain improvements
other than buildings, such as roads, bridges, curbs and gutters, streets
and sidewalks and drainage systems are not capitalized.
General Fixed Assets that have been acquired and are utilized in a
governmental fund operation are accounted for in the General Fixed
Asset Account Group rather than in a governmental fund.
No
depreciation has been provided on General Fixed Assets or reported in
the financial statements.
The Borough has developed a fixed assets accounting and reporting
system based on an inspection and valuation prepared by an
independent appraisal firm.
Adjustments for assets acquired/sold
subsequent to this date have been recorded. Fixed assets are valued at
historical cost or estimated historical cost if actual historical cost is not
available. Buildings and land are stated at the assessed value contained
in the Borough's most recent property revaluation.
Expenditures for construction in progress are recorded in the Capital
Funds until such time as the construction is completed and put into
operation.
Fixed assets acquired through grants in aid or contributed capital has not
been accounted for separately.
Inventories of Supplies - The cost of inventories of supplies for all funds
are recorded as expenditures at the time individual items are purchased.
The cost of inventories is not included on the various balance sheets.
GAAP requires the cost of inventories to be reported as a current asset
and equally offset by a fund balance reserve.
9
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 - The Governmental
Accounting Standards Board (GASS) 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.
10
NOTE 1:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C.
Basis of Accounting (Continued)
Accounting and Financial Reporting for Pensions (Continued) - 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.
11
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.
E.
Restatement/Reclassifications of Prior Balances
Certain accounts have been restated in the prior year to conform to
categories established in the current fiscal year. None of these restated
accounts were material to the financial statements taken as a whole.
12
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, 2017:
Bank
Reconciling Items:
Reconciled
Fund TYPe
Balance
Additions
Deletions
Balance
Current Fund
$ 441,079.94
$21,965.05
$ 4,923.47
$
458,121.52
Animal Control Fund
2,842.99
2,842.99
Other Trust Fund
27,694.30
2,514.05
4,030.78
26,177.57
General Capital Fund
475,576.18
10,670.90
486,247.08
Water Utility Operating Fund
254,452.15
614.32
2,212.58
252,853.89
Sewer Utility Operating Fund
594,540.78
3,924.73
590,616.05
TOTAL DECEMBER 31, 2017
$1,796,186.34
$ 35,764.32
$15,091.56
$1,816,859.10
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, 2017, 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 $1,546, 186.34 was covered under
the provisions of NJGUDPA.
13
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 Local
Government Services of the Department of Community Affairs 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.
14
NOTE 2:
NOTE 3:
CASH AND CASH EQUIVALENTS (CONTINUED)
B.
Investments (Continued)
7.
Deposits with the State of New Jersey Cash Management Fund
established pursuant to section 1 of P.L. 1977, c.281 (c.52:18A-
90.4); or
8.
Agreements for the repurchase of fully collateralized securities if:
a.
the
underlying securities
are
permitted
investments
pursuant to paragraphs (1) and (3) of this subsection;
b.
the custody of collateral is transferred to a third party;
c.
the maturity of the agreement is not more than 30 days;
d.
the underlying securities are purchased through a public
depository as defined in section 1 of P.L. 1970, c.236
(c. 17:19-41); and
e.
a master repurchase agreement providing for the custody
and security of collateral is executed.
The Borough of Stockton had no investments outstanding as of
December 31, 2017.
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.
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.
15
NOTE 3:
LONG-TERM DEBT (CONTINUED)
SUMMARY OF MUNICIPAL DEBT
YEAR 2017
YEAR 2016
YEAR 2015
Issued:
General Capital
Bonds, Notes and Loans
$
781,238.16
$
529,481.37
$
577,988.66
Water Utility:
Bonds and Notes
214,218.00
218,069.00
220,284.00
Sewer Utility:
Bonds and Notes
205,337.92
240,593.26
314,473.70
Net Debt Issued
$
1,200,794.08 $
988,143.63 $
1,112,746.36
Authorized But Not Issued:
General Capital - Bonds and Notes
$
196, 187.99 $
664,799.67
$
364,798.80
Water Capital - Bonds and Notes
20,000.00
20,000.00
20,000.00
Sewer Utility - Bonds and Notes
22, 120.48
52, 120.48
22,120.48
Total Authorized But Not Issued
$
238,308.47 $
736,920.15
$
406,919.28
NET BONDS AND NOTES
ISSUED AND AUTHORIZED
BUT NOT ISSUED
$
1,439, 102.55 $
1,725,063.78 $
1,519,665.64
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 . 780%.
GROSS DEBT
DEDUCTIONS
NET DEBT
Regional School District Debt
$
860,631.21
$
860,631.21
$
Sewer Utility Debt
227,458.40
227,458.40
Water Utility Debt
234,218.00
234,218.00
General Debt
977,426.15
253,837.01
723,589.14
$
2,299,733.76 $
1,576, 144.62 $
723,589.14
NET DEBT $723,589.14 DIVIDED BY EQUALIZED VALUATION BASIS PER
N.J.S.A. 40A:2-2, $92,710,601.33 EQUALS .780 %.
16
NOTE 3:
LONG-TERM DEBT (CONTINUED)
BORROWING POWER UNDER N.J.S.A. 40A:2-6 AS AMENDED
Equalized Valuation Basis- December 31, 2017
$92, 710,601.33
3-1/2% of Equalized Valuation Basis
$3,244,871.05
Net Debt
723,589.14
Remaining Borrowing Power at December 31, 2017
$2.521.281.91
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
Deduction:
Operating and Maintenance Cost
Debt Service Per Water Utility Account
Excess in Revenue - Self Liquidating
17
$115,937.14
$84,550.00
6,567.00
91,117.00
$24,820.14
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
Deduction:
Operating and Maintenance Cost
Debt Service Per Sewer Utility Account
Excess in Revenue - Self Liquidating
General Capital
Green Acres Trust Loan:
$200,000.00 of 2005 Trust Loan due in annual
installments of $6, 156. 7 4 to $12, 131.23 through
January 2025 at an interest rate 2.00%.
$334,744.09
$190,152.50
70,932.71
261,085.21
$73,658.88
$ ==8=6==,2=17=.3=1=
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%.
$282,975.00 of 2006 Trust Loan due in annual
installments of $8,788.26 to $15,427.55 through
August 2021.
18
$
175,000.00
========
$
53,119.85
========
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%.
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.
Bonds and Notes Authorized But Not Issued
$
110,000.00
========
$ ==6=5==,3=3=7.=92=
At December 31, 2017, the Borough has authorized but not issued bonds and
notes as follows:
General Capital Fund
$
196, 187.99
Water Utility Capital Fund
$ ==2=0,==00=0=.0=0=
Sewer Utility Capital Fund
$ ==2=2,==12=0=.4=8=
SCHEDULE OF ANNUAL DEBT SERVICE FOR PRINCIPAL AND INTEREST
FOR GREEN TRUST LOANS ISSUED AND
OUTSTANDING DECEMBER 31, 2017
Calendar
Trust Loan
Year
Principal
Interest
Total
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
$
86,217.31
$
7,057.47
$
93,274.78
19
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, 2017
Calendar
Trust Loan
Fund Loan
Year
2018
2019
2020
2021
2022
2023
2024
2025
2026
Total
Principal
Interest
Principal
Total
$
15,000.00 $
7,412.50
$
14, 105.87 $
36,518.37
15,000.00
6,812.50
13,728.23
35,540.73
20,000.00
6,212.50
16,497.49
42,709.99
20,000.00
5,412.50
8,788.26
34,200.76
20,000.00
4,587.50
24,587.50
20,000.00
3,762.50
23,762.50
20,000.00
2,912.50
22,912.50
20,000.00
1,912.50
21,912.50
25,000.00
1,062.50
26,062.50
$
175,000.00 $
40,087.50
$
53, 119.85 $
268,207.35
SCHEDULE OF ANNUAL DEBT SERVICE FOR PRINCIPAL AND INTEREST
FOR NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE LOANS ISSUED AND
OUTSTANDING DECEMBER 31, 2017
Calendar
Year
2018
$
2019
2020
Total
$
SEWER UTILITY
Trust Loan
Principal
Interest
35,000.00 $
5,775.00
35,000.00
3,937.50
40,000.00
2,100.00
110,000.00
======== $
11,812.50
20
Total
$
40,775.00
38,937.50
42,100.00
$
121,812.50
NOTE 3:
NOTE4:
LONG-TERM DEBT (CONTINUED)
SCHEDULE OF ANNUAL DEBT SERVICE FOR PRINCIPAL AND INTEREST
FOR BONDED DEBT ISSUED AND OUTSTANDING DECEMBER 31, 2017
SEWER UTILITY
Calendar
Year
Principal
Interest
Total
2018
$
31,768.10
$
3,266.90
$
35,035.00
2019
33,569.82
1,678.49
35,248.31
Total
$
65,337.92
$
4,945.39
$
70,283.31
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.
21
NOTE 4:
SHORT-TERM DEBT (CONTINUED)
Outstanding Bond Anticipation Notes are summarized as follows:
Interest
Original
General Capital
Rate
Issue Date
Amount
2010-02
1.73%
9/23/2010
$
32,711.00
2011-01
1.73%
9/21/2012
134, 190.00
2016-08
1.73%
9/15/2017
300,000.00
$
466,901.00
Water Capital
2012-04
1.73%
9/21/2012
$
168,354.00
2014-04
1.73%
9/19/2014
45,864.00
$
214,218.00
Sewer Capital
2016-09
1.73%
9/15/2017
$
30,000.00
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 2017.
22
NOTE 5:
NOTE 6:
NOTE 7:
FUND BALANCES APPROPRIATED
Fund balances at December 31, 2017 which were appropriated and included as
anticipated revenue in their own respective funds for the year ending
December 31, 2018 were as follows:
Current Fund
Water Operating Fund
Sewer Operating Fund
PROPERTY TAXES
$165,000.00
$ 17,000.00
$ 52,800.00
Property taxes attach as an enforceable lien on property as of January 1. Taxes
are levied based on the final adoption of the current year municipal budget, and
are payable in four installments on February 1, May 1, August 1 and
November 1. The Borough bills and collects its own property taxes and also
taxes for the County and local school district. The collections and remittance of
county and school taxes are accounted for in the Current Fund.
Borough
property tax revenues are recognized when collected in cash and any
receivables are recorded with offsetting reserves on the balance sheet of the
Borough's Current Fund.
Taxes Collected in Advance~ Taxes collected in advance and recorded as cash
liabilities in the financial statements are as follows:
Prepaid Taxes
PENSION PLANS
BALANCE
DECEMBER
31, 2017
$56,769.53
BALANCE
DECEMBER
31,2016
$7,501.36
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. shtm I.
23
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 (OCRP) - 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.
Effective July 2017, PERS provides for employee contributions of 7.34% 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.
24
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 $12,807.00 for 2017,
$12,284.00 for 2016 and $12,482.00 for 2015.
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"
which requires the State of New Jersey to calculate and allocate, for note
disclosure purposes only, the unfunded net pension liability of Public Employees
Retirement System (PERS) and the Police and Firemen's Retirement System
(PFRS) of the participating municipality as of December 31, 2017.
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, 2017.
Public Employees Retirement System (PERS)
At June 30, 2017, the State reported a net pension liability of $345,284.00 for the
Borough of Stockton's proportionate share of the total net pension liability. The
total pension liability for the June 30, 2017 measurement date was determined by
an actuarial valuation as of July 1, 2016, which was rolled forward to June 30,
2017. 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, 2017, the Borough's proportion was 0.0014832795
percent, which was an increase of 0.0000416759 percent from its proportion
measured as of June 30, 2016.
For the year ended June 30, 2017, the State recognized an actuarially
determined pension expense of $22,713.00 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, 2017 billing
was $12,807.00.
25
NOTE 7:
PENSION PLANS {CONTINUED)
Accounting and Financial Reporting for Pensions - GASS 68 {Continued)
Public Employees Retirement System {PERS) {Continued)
At June 30, 2017, the State reported deferred outflows of resources and deferred
inflows of resources related to PERS from the following sources:
Deferred
Inflow of
Resources
Differences between expected and actual experience
Changes of assumptions
$69,308.00
Deferred
Outflow of
Resources
$8, 130.00
69,563.00
Net difference between projected and actual earnings
on pension plan investments
Changes in proportion and differences between Borough
contributions and proportionate share of contributions
31,546.00
$100,854.00
2,351.00
26,658.00
$106,702.00
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,
2018
2019
2020
2021
2022
26
Amount
$5,355.00
10,302.00
4,022.00
(7,650.00)
(6,181.00)
$5,848.00
NOTE 7:
PENSION PLANS (CONTINUED)
Accounting and Financial Reporting for Pensions - GASB 68 (Continued)
Public Employees Retirement System (PERS) (Continued)
Actuarial Assumptions
The total pension liability for the June 30, 2017 measurement date was
determined by an actuarial valuation as of July 1, 2016, which rolled forward to
June 30, 2017. These actuarial valuations used the following assumptions:
Inflation
Salary Increases (based on age)
Though 2026
Thereafter
Investment Rate of Return
June 30, 2017
2.25 Percent
1.65-4.15 Percent
2.65-5.15 Percent
7.00 Percent
June 30, 2016
3.08 Percent
1.65-4.15 Percent
2.65-5.15 Percent
7.65 percent
Preretirement mortality rates were
based
on the
RP-2000
Employee
Preretirement Mortality Table for male and female active participants. For State
employees, mortality tables are set back 4 years for males and females. For local
employees, mortality tables are set back 2 years for males and 7 years for
females. In addition, the tables provide for future improvements in mortality from
the base year of 2013 using a generational approach based on the plan actuary's
modified MP-2014 projection scale. Postretirement morality rates were based on
the RP-2000 Combined Healthy Male and Female Mortality Tables (set back 1
year for males and females) for service retirements and beneficiaries of former
members and a one-year static projection based on mortality improvement Scale
AA.
In addition, the tables for service retirements and beneficiaries of former
members provide for future improvements in mortality from the base year of 2013
using a generational approach based on the plan actuary's modified MP-2014
projection scale. Disability retirement rates used to value disabled retirees were
based on the RP-2000 Disabled Mortality Table (set back 3 years for males and
set forward 1 year for females).
The actuarial assumptions used in the July 1, 2016 valuation were based on the
results of an actuarial experience study for the period July 1, 2011 to June 30,
2014. It is likely that future experience will not exactly conform to these
assumptions. To the extent that actual experience deviates from these
assumptions, the emerging liabilities may be higher or lower than anticipated.
The more the experience deviates, the larger the impact on future financial
statements.
27
NOTE 7:
PENSION PLANS (CONTINUED)
Accounting and Financial Reporting for Pensions - GASB 68 (Continued)
Public Employees Retirement System (PERS) (Continued)
Long-Term Rate of Return
In accordance with State statute, the long-term expected rate of return on plan
investments (7.00% at June 30, 2017 and 7.65 at June 30, 2016) is determined
by the State Treasurer, after consultation with the Directors of the Division of
Investment and Division of Pensions and Benefits, the board of trustees and the
actuaries. The long-term expected rate of return was determined using a building
block method in which best-estimate ranges of expected future real rates of
return (expected returns, net of pension plan investment expense and inflation)
are developed for each major asset class. These ranges are combined to
produce the long-term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage and by adding
expected inflation. Best estimates of arithmetic rates of return for each major
asset class included in PERS's target asset allocation as of June 30, 2017 are
summarized in the following table:
June 30, 2017
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Absolute return/risk mitigation
5.00%
5.51%
Cash
5.50%
1.00%
US Treasuries
3.00%
1.87%
Investment Grade Credit
10.00%
3.78%
Public High Yield
2.50%
6.82%
Global Diversified Credit
5.00%
7.10%
Credit oriented hedge funds
1.00%
6.60%
Debt related private equity
2.00%
10.63%
Debt related real estate
1.00%
6.61%
Private Real Estate
2.50%
11.83%
Equity related real estate
6.25%
9.23%
U.S. Equity
30.00%
8.19%
Non-U.S. developed market
equity
11.50%
9.00%
Emerging markets equity
6.50%
11.64%
Buyouts venture capital
8.25%
13.08%
100.00%
28
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 5.00% and
3.98% as of June 30, 2017 and 2016, respectively. This single blended discount
rate was based on the long-term expected rate of return on pension plan
investments of 7.00% and 7.65%, and a municipal bond rate of 3.58% and
2.85% as of June 30, 2017 and 2016, 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 contribution rate in the
most recent fiscal year. The State employer contributed 40% of the actuarially
determined contributions and the local employers contributed 100% of their
actuarially determined contributions. Based on those assumptions, the plan's
fiduciary net position was projected to be available to make projected future
benefit payments of current plan members through 2040. Therefore, the long-
term expected rate of return on plan investments was applied to projected benefit
payments through 2040 and the municipal bond rate was applied to projected
benefit payments after that date in determining the total pension liability.
Sensitivity of the Collective Net Pension Liability to Changes in the Discount Rate
The following presents the collective net pension liability of the participating
employers as of June 30, 2017 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:
1%
Decrease
4.00%
June 30, 2017
At Current
Discount Rate
5.00%
1%
Increase
6.00%
Borough's proportionate share
of the pension liability
$428,348.00
$345,284.00
$276,081.00
29
NOTE 7:
NOTE8:
NOTE 9:
NOTE 10:
NOTE 11:
PENSION PLANS (CONTINUED)
Accounting and Financial Reporting for Pensions - GASS 68 {Continued)
Public Employees Retirement System (PERS) (Continued)
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in
the separately issued Financial Report for the State of New Jersey Public
Employees Retirement System (PERS). The report may be obtained at State of
New Jersey Division of Pensions and Benefits P.O. Box 295 Trenton, New
Jersey 08625-0295 http://www. state. nj. us/treasury/pensions.
COMPENSATED ABSENCES
The Borough does not have a policy which allows employees to accrue unused
vacation and sick pay.
LITIGATION
The Borough Attorney's letter did not indicate any litigation, claims or contingent
liabilities that are either not covered by the Borough's insurance carrier or would
have a material financial impact on the Borough.
TAX APPEALS
There are tax appeals filed with the County and State Tax Court of New Jersey
requesting a reduction of assessments for the year 2017.
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.
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 2017 audit report. There
were no findings and questioned costs for 2017. In addition, these programs are
also subject to compliance and financial audits by the granters or their
representatives. As of December 31, 2017, the Borough does not believe that
any material liabilities will result from such audits.
30
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.
NOTE 13:
INTERFUNO RECEIVABLES AND PAYABLES
The following interfund balances remained on the balance sheets at December 31,
2017:
INTERFUND
INTERFUND
FUND
RECEIVABLE
PAYABLE
Current
$
758.59
$
33,526.01
Grant
33,070.51
Animal Control
758.59
General Capital
1,014.88
Water Utility Operating
31,525.64
Water Utility Capital
30,965.48
559.38
Sewer Utility Operating
560.16
186,862.18
Sewer Utility Capital
__
186,862.18
TOTAL
$
253,231.80
$
253,231.80
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 2017.
31
NOTE 15:
GASS 45: OTHER POST-EMPLOYMENT BENEFITS
The Borough is required to implement the note disclosure prov1s1on of GASS
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. OPES 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.
NOTE 16:
RESTATEMENT
As stated in Note 1, restatements were made to prior year balances as follows:
BEGINNING
BEGINNING
BALANCE
BALANCE
(AS REST A TED)
12/31/2016
ADJUSTMENT
12/31/2016
EXPLANATION
GENERAL FIXED ASSETS
ACCOUNT GROUP:
Land
-0.00-
$1,643,525.00
$1,643,525.00
To record fixed
Buildings and Improvements
-0.00-
233,700.00
233,700.00
assets per ledger
NOTE17:
SUBSEQUENTEVENTS
The Borough has evaluated subsequent events occurring after the financial
statement date through August 10, 2018 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.
32
BOROUGH OF STOCKTON
SUPPLEMENTARY SCHEDULES - ALL FUNDS
YEAR ENDED DECEMBER 31, 2017
Balance, December 31, 2016
Increased by Receipts:
Collector
Petty Cash Fund
State of New Jersey-Chapter 20, P.L. 1971
Revenue Accounts Receivable
Miscellaneous Revenue Not Anticipated
lnterfunds Received
Reserve for Grants Receivable
Decreased by Disbursements:
2017 Appropriations
2016 Appropriation Reserves
Petty Cash Fund
Tax Overpayments Refunded
lnterfunds Disbursed
County Taxes
Regional High School Tax
Miscellaneous Revenue Anticipated - Refunds
Balance, December 31, 2017
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF CASH-TREASURER
REF.
CURRENT FUND
A
$
554,804.71
A-5
$
1,958,732.87
A-11
100.00
A-8
5,500.00
A-9
137,415.51
A-2
15,429.88
A-10
6,556.92
A-18
2, 123,735.18
$
2,678,539.89
A-3
$
447,850.62
A-12
40,442.19
A-11
100.00
A-17
2,318.23
A-10:A-6
10,241.13
A-13
346,365.20
A-14
1,372,751.00
A-2
350.00
2,220,418.37
A
$
458,121.52
"A-4"
FEDERAL AND STATE
GRANT FUND
$
$
6,556.92
6,556.92
$
6,556.92
$
6,556.92
6,556.92
$
-0-
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF CASH-COLLECTOR
REF.
Increased by
Received:
Interest on Delinquent Taxes
A-9
$
3,425.59
Taxes Receivable
A-7
1,894,412.72
2018 Taxes Prepaid
A-16
56,769.53
Tax Overpayments
A-17
4, 125.03
$
1,958,732.87
Decreased by Disbursements:
Payments to Treasurer
A-4
$
1,958, 732.87
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF DUE CURRENT FUND - GRANT FUND
Balance, December 31, 2016
A
$
26,513.59
Increased by:
Disbursements
A-4
6,556.92
Balance, December 31, 2017
A
$
33,070.51
======
"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, 2016
2017 LEVY
IN 2016
IN 2017
APPLIED
CANCELED
31 2017
2016
s
12,878.09
$
$
$
12,843.00
$
$
35.09
$
2017
1,926, 783.62
7,501.36
1,887,069.72
672.51
1,831.19
29,708.84
$
12,878.09
$
1,926,783.62
$
7.501.36
$
1,899,912.72
$
672.51
$
1,866.28
$
29,708.84
REF.
A
A-2:A-16
A-2
A-2:A-17
A
REF.
Collector
A-5
$
1,894,412 .72
State of New Jersey
A-8
5,500.00
$
1,899,912.72
ANALYSIS OF 2017 PROPERTY TAX LEVY
TAX YIELD
General Purpose Tax
$
1,924,026.07
Added Taxes (54:4-63.1 et. seq.)
2,757.55
$
1,926. 783.62
TAX LEVY
Regional High School Tax (Abstract)
A-14
$
1,178,294.00
County Taxes:
County Tax
A-13
$
289,248:48
County Library Tax
A-13
28,955.11
County Open Space Preservation Tax
A-13
28.161.61
County Added
A-13
497.53
346,862.73
Local Tax for Municipal Purposes (Abstract)
A-2
$
398,618.75
Add: Additional Tax Levied
3,008.14
Local Tax for Municipal Purposes Levied
401,626.89
$
1.926,783.62
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF DUE STATE OF NEW JERSEY
PER CHAPTER 20. P.L. 1971
Increased by:
Deductions Per Tax Dupticate:
Veterans
Decreased by:
Received From State of New Jersey
SUMMARY OF 2017 EXEMPTIONS
Senior Citizens and Veterans Deductions
Per Tax Billings
A-4
A-7
$
5,500.00
$
5,500.00
=======
$
5,500.00
==========
"A-9"
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE
BALANCE
BALANCE
DECEMBER
ACCRUED
COLLECTED BY
DECEMBER
REF.
31,2016
IN 2017
COLLECTOR
TREASURER
31, 2017
Clerk:
Alcoholic Beverage Licenses
A-2
$
$
3,824.00
$
$
3,824.00
$
Other Licenses
A-2
3,134.00
3,134.00
Fees and Permits
A-2
1,826.50
1,826.50
Municipal Court:
Fines and Costs
A-2
189.37
6,363.80
6,294.73
258.44
Interest and Costs on Taxes
A-2
3,425.59
3,425.59
Consolidated Municipal Property Tax Relief Act
A-2
369.00
369.00
Energy Receipts Tax
A-2
45,202.00
45,202.00
Garden State Preservation Trust Fund
A-2
6,150.00
6,150.00
Hotel and Motel Tax
A-2
22,517.79
22,517.79
Cell Tower Rental
A-2
37,791.08
37,791.08
Reserve to Pay Debt Service
A-2
10,306.41
10,306.41
$
189.37
$
140,910.17
$
3,425.59
$
137,415.51
$
258.44
REF.
A
A-5
A-4
A
"A-10"
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF INTERFUNDS
ANIMAL
GENERAL
GRANT
CONTROL
CAPITAL
REF.
TOTAL
FUND
FUND
FUND
Balance, December 31, 2016:
Due From
A
$
436.07
$
$
436.07
$
Due To
A
37,210.22
26,513.59
10,696.63
Receipts
A-4
6,556.92
6,556.92
Disbursements
A-4
10,241.13
10,241.13
Excess Animal Control Reserve
A-2
322.52
322.52
Balance, December 31, 2017:
Due From
A
$
758.59
$
$
758.59
$
Due To
A
33,526.01
33,070.51
455.50
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF PETTY CASH FUNDS
REF.
Increased by:
Disbursements
A-4
$
100.00
Decreased by
Receipts
A-4
$
100.00
"A-12"
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF 2016 APPROPRIATION RESERVES
BALANCE
BALANCE
DECEMBER
AFTER
PAID OR
BALANCE
31,2016
TRANSFERS
CHARGED
LAPSED
SALARIES AND WAGES
Governing Body
$
0.46
$
0.46
$
$
0.46
Municipal Clerk
701.25
701.25
701.25
Administration
268.40
268.40
268.40
Assessment of Taxes
1.82
1.82
1.82
Tax Collection
0.55
0.55
0.55
Planning Board
0.39
0.39
0.39
Zoning Board
0.08
0.08
0.08
Police
1.04
1.04
1.04
Municipal Prosecutor
0.52
0.52
0.52
Municipal Court
0.11
0.11
0.11
Animal Control Services
1.80
1.80
1.80
Building Inspector
0.08
0.08
0.08
OTHER EXPENSES
Governing Body
43.00
43.00
43.00
Municipal Clerk
591.52
669.75
114.17
555.58
Elections
87.24
8724
87.24
Financial Administration:
Other Expenses
1,756.51
929.01
672.50
256.51
Assessment of Taxes
500.00
500.00
500.00
Collection of Taxes
56717
627.17
627.17
Public Works
4,509.18
3,309.18
2,670.00
639.18
Public Defender
200.00
20000
200.00
Legal Services and Costs
1,252.91
1,252.91
46720
785.71
Legal Consultants
1,252.00
1,252.00
232.50
1,019.50
Engineering Services
175.51
9,259.26
9,068.29
190.97
Engineering Consultants
500.00
500.00
500.00
Planning Board:
Other Expenses
405.92
405.92
405.92
Consultants
325.00
325.00
31.25
293.75
Insurance:
Workers Comp.
273.00
273.00
273.00
Other Insurance
1,632.00
132.00
132.00
Flood
2,086.62
2,086.62
402.50
1,684.12
Police
150.00
150.00
150.00
Snow Removal
3,770.00
3,770.00
1,425.00
2,345.00
Emergency Repairs to Worman Road
456.50
456.50
Solid Waste Collection
17,808.36
23,274.58
10,932.44
12,342.14
Building and Grounds
1.00
1.00
1.00
Recycling
1,959.22
2,990.20
2,061.94
928.26
Board of Health
200.00
600.00
600.00
Building Inspector
300.00
300.00
300.00
Recreation
567.06
567 06
567.06
Environmental
350.00
350.00
350.00
Municipal Court
600.00
600.00
600.00
Electricity
6.83
6.83
6.83
Street Lighting
2,634.26
2,634.26
840.97
1,79329
Telephone
2,269.91
2,461.35
191.44
2,269.91
Natural Gas
1,294.98
1,294.98
275.49
1,019.49
Social Security System
454.34
454.34
454.34
Unemployment Insurance
500.00
500.00
500.00
Length of Service Award Program
1,000.00
1,000.00
1,000.00
Capital Improvement Fund Lambertville Sewerage Authority
10,000.00
10,000.00
10,000.00
Surety Bond Premium
2.00
2.00
2.00
Council on Affordable Housing
1,500.00
1,500.00
1,500.00
$
62,502.04
$
75,741.66
$
40,442.19
$
35,299.47
REF.
A
A-4
A-1
Balance, December 31, 2016
A-12
$
62,502.04
Encumbrances Payable
A-20
13,239.62
$
75,741.66
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF COUNTY TAXES PAYABLE
REF.
2017 Tax Levy:
County Taxes
A-1 :A-7
$
289,248.48
County Open Space
A-1 :A-7
28, 161.61
County Library
A-1 :A-7
28,955.11
County Share of Added Taxes
A-1:A-7
497.53
$
346,862 73
Decreased by:
Disbursements
A-4
346,365.20
Ba~nce, December31,2017
A
$
497.53
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF REGIONAL HIGH SCHOOL TAX PAYABLE
REF.
Increased by:
Levy
A-1 :A-7
Decreased by:
Disbursements
A-4
Balance, December 31, 2017 (prepaid)
A
SCHEDULE OF GRANTS UNAPPROPRIATED
Balance, December 31, 2016
and December 31, 2017
A
$
1, 178,294.00
1,372,751 00
$
(194,457.00)
$
12,300.00
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF PREPAID TAXES
REF.
Balance, December 31, 2016 (2017 Taxes)
A
$
7,501.36
Increased by:
Collection of 2018 Taxes
A-5
56,769.53
$
64,270.89
Decreased by:
Application to 2017 Taxes Receivable
A-7
7,501.36
Balance, December 31, 2017 (2018 Taxes)
A
$
56,769.53
SCHEDULE OF TAX OVERPAYMENTS
Balance, December 31, 2016
A
$
822.48
Increased by:
Receipts
A-5
4,125.03
$
4,947.51
Decreased by:
Disbursements
A-4
$
2,318.23
Applied
A-7
672.51
Canceled
A-1
165.77
3, 156.51
Balance, December31, 2017
A
$
1,791.00
"A-18"
BOROUGH OF STOCKTON
GRANT FUND
SCHEDULE OF GRANTS RECEIVABLE
ACCRUED
BALANCE
2017
CASH
DECEMBER
BUDGET
RECEIPTS
CANCELED
31,2017
Clean Communities Program
$
4,000.00
$
4,000.00
$
Recycling Tonnage Grant
4,277.51
2,556.92
1,720.59
$
8,277.51
$
6,556.92
$
1,720.59
$
-0.00-
REF.
A-2
A-4
A-19
A
"A-19"
BOROUGH OF STOCKTON
GRANT FUND
SCHEDULE OF RESERVE FOR GRANTS APPROPRIATED
BALANCE
2017
BALANCE
DECEMBER
BUDGET
DECEMBER
31,2016
APPROPRIATIONS
CANCELED
~2017
Clean Communities Program
$
23,910.54
$
4,000.00
$
$
27,910.54
Alcohol Education and Rehabilitation Fund
178.59
178.59
Recycling Tonnage Grant
2,424.46
4,277.51
1,720.59
4,981.38
$
26,513.59
$
8,277.51
$
1,720.59
$
33,070.51
REF.
A
A-3
A-18
A
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF ENCUMBRANCES PAYABLE
REF.
Balance, December 31, 2016
A
$
13,239.62
Increased by:
Charges to Appropriations
A-3
16,012.78
$
29,252.40
Decreased by:
Transferred to Appropriation Reserves
A-12
13,239.62
Balance, December 31, 2017
A
$
16,012.78
BOROUGH OF STOCKTON
CURRENT FUND
SCHEDULE OF DEFERRED CHARGES
Balance, December 31, 2016
A
$
11,153.13
Decreased by:
Raised by Budget
A-3
$
11,153.13
=======
Balance, December 31, 2016
Increased by Receipts
Dog License Fees
Due from State of New Jersey
Various Reserves and Deposits
Decreased by Disbursements:
Expenditures under R.S.4:19-15.11
Due from State of New Jersey
Various Reserves and Deposits
Balance, December 31, 2017
B
B-2
B-3
B-4
B-2
B-3
B-4
B
BOROUGH OF STOCKTON
TRUST FUND
SCHEDULE OF CASH-TREASURER
ANIMAL CONTROL
$
2,520.47
$
906.52
67.80
974.32
$
3,494.79
$
584.00
67 80
651.80
$
2 842.99
TRUST OTHER
$
23,720.65
$
185,385.06
185,385 06
$
209,105.71
$
182,928.14
182,928.14
$
26 177.57
BOROUGH OF STOCKTON
TRUST FUND
SCHEDULE OF RESERVE FOR ANIMAL CONTROL TRUST FUND EXPENDITURES
REF.
Balance, December 31, 2016
B
Increased by:
Animal Control Fees Collected
B-1
Decreased by:
Expenditures under R.S.4:19-15.11:
Disbursements
B-1
$
584.00
Statutory Excess Due Current Fund
B-5
322.52
Balance, December 31, 2017
B
LICENSE FEES COLLECTED
YEAR
AMOUNT
2016
$
1,093.00
2015
992.60
$
2,085.60
SCHEDULE OF DUE STATE OF NEW JERSEY -
ANIMAL CONTROL FUND
Balance, December 31, 2016 (Due From)
B
Increased by:
Disbursements
B-1
Decreased by:
Receipts
B-1
Balance, December 31, 2017 (Due From)
B
$
$
$
$
$
$
2,085.60
906.52
2,992.12
906.52
2,085.60
(1.20)
67.80
66.60
67.80
(1.20)
BOROUGH OF STOCKTON
TRUST FUND
SCHEDULE OF VARIOUS RESERVES AND DEPOSITS
BALANCE
BALANCE
DECEMBER
DECEMBER
31.2016
RECEIPTS
DISBURSEMENTS
31,2017
State Unemployment Insurance
$
17,290.85
$
448.68
$
$
17,739.53
Stockton Park Auxiliary
907.64
907.64
Payroll Agency
1,141.66
169,955.38
169,955.36
1,141.68
Planning Board Escrow
4,380.50
14,981.00
12,972.78
6,388.72
$
23,720.65
$
185,385.06
$
182 928.14
$
26177.57
REF.
B
B-1
B-1
B
BOROUGH OF STOCKTON
TRUST FUND
SCHEDULE OF DUE CURRENT FUND
ANIMAL
REF.
TOTAL
CONTROL
Balance, December 31, 2016:
Due To
B
$
436.07
$
436.07
Increased by:
Excess Reserve
B-2
322.52
322.52
Balance, December 31, 2017:
Due To
B
$
758.59
$
758.59
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF CASH - TREASURER
REF.
Balance, December 31, 2016
c
$
221,387.46
Increased by Receipts:
Budget Appropriations:
Capital Improvement Fund
C-9
$
28,000.00
lnterfunds
C-10
10,726.00
Bond Anticipation Notes
C-8
466,901.00
Grants Receivable
C-6
89,350.55
594,977.55
$
816,365.01
Decreased by Disbursements:
Bond Anticipation Notes
C-8
$
166,902.00
Contracts Payable
C-14
152,424.65
Miscellaneous Deposits
C-4
10,306.41
lnterfunds
C-10
484.87
330,117.93
Balance, December 31, 2017
c
$
486,247.08
Capital Improvement Fund
Grants Receivable
Contracts Payable
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
ANALYSIS OF CASH
Improvement Authorizations Funded as Set Forth On "C-7"
Improvement Authorizations Expended as set forth on "C-5"
Cash on Hand to Pay Notes
lnterfunds Receivable
Reserve for Receivables
Miscellaneous Reserves
Capital Fund Balance
Unexpended Proceeds of Bond Anticipation Notes Issued as set forth on "C-5"
$
BALANCE
DECEMBER
31 2017
259,507.95
(146, 186.12)
15,708.04
20,492 81
(196,187.99)
232,266.41
(1,014.88)
132,649.45
32,561.97
3,600.63
132,848.81
$ ==4=8=6=24=7=.0=8=
C-2
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF RESERVE FOR MISCELLANEOUS DEPOSITS
BALANCE
BALANCE
DECEMBER
DECEMBER
31. 2016
DISBURSEMENTS
31, 2017
Purchase of Recreation Equipment
$
2,215.00
$
$
2,215.00
Debt Service
4,697.24
4,697.24
State Aid - Bridge Street
26,309.64
10,306.41
16,003.23
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
$
42,868.38
$
10,306.41
$
32,561.97
REF.
c
C-2
c
"C-5"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION- UNFUNDED
ANALYSIS OF BALANCE, DECEMBER 31, 2017
BALANCE
BALANCE
BOND
UNEXPENDED
ORDINANCE
DECEMBER
DECEMBER
ANTICIPATION
IMPROVEMENT
NUMBER
IMPROVEMENT DESCRIPTION
31,2016
DECREASED
31.2017
NOTES
EXPENDITURES
AUTHORIZATIONS
2005-06
Reconstruction of Mill Street
$
104,798.06
$
$
104,798.06
$
$
104,798.06
$
2010-02
Improvements to Woolverton Road
33,738.61
9,753.47
23,985.14
23,985.14
2011-01
Improvements to Old Prallsville Road
141,370.00
141,370.00
2012-08
Road and Drainage Improvements - Wilson Drive
260,000.00
168,610.07
91,389.93
91,389.93
2016-08
Reconstruction of Glenwood Lane
300,000.00
89,350.55
210,649.45
210,649.45
$
839,906.67
$
409,084.09
$
430,822.58
$
234,634.59 $
196,187.99
$
REF.
c
c
C-3
Paid by Budget
C-8
$
8,205.00
Grants Received
C-14
89,350.55
Canceled
C-7
311,528.54
$.
409,084.09
Bond Anticipation Notes
C-8
$
466,901.00
Less: Cash on Hand to Pay Notes
C-3
232,266.41
$
234,634.59
Improvement Authorizations-Unfunded
C-7
$
132,848.81
Less: Unexpended Proceeds of Bond
Anticipation Notes - 2016-08
C-3
$
132,848.81
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF GRANTS RECEIVABLE
Balance, December 31, 2016
c
$
235,536.67
Decreased by:
Receipts
C-2
89,350.55
Balance, December 31, 2017
c
$
146,186.12
========
"C-7"
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
BALANCE
BALANCE
ORDINANCE
ORDINANCE
DECEMBER 31, 2016
PAID OR
DECEMBER 31, 2017
NUMBER
IMPROVEMENT DESCRIPTION
DATE
AMOUNT
FUNDED
UNFUNDED
CHARGED
CANQELED
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
04111/11
280,000.00
1,333.62
141,370.00
142,703.62
2012-08
Road and Drainage Improvements - Wilson Drive
12/10/12
425,000.00
168,610.07
168,610.07
2015-05
Purchase and Installation of Drainex Equipment
08/10/15
20,000.00
327.06
327.06
2015-06
Authorize Section 20 Costs
08/10/15
6,000.00
1,743.50
603.75
1,139.75
2016-05
Stabilization of Worman Road
07/11/16
20,000.00
7,246.25
498.75
6,747.50
2016-06
Purchase and Install Stockton Park Equipment
07111/16
10,000.00
10,000.00
10,000.00
2016-07
Preparation of an Open Space/Recreation Plan
07/11/16
8,50000
2,687.50
409.00
2,278.50
2016-08
Reconstruction of Glenwood Lane
10/10/16
300,000.00
288,990.50
156, 141.69
_____!g848.81
$
23,337.93
$
600,519.04
$
157,653.19
$
312,862.16
$
20,492.81
$
132,848.81
REF.
c
c
C-14
C:C-3
C:C-5
Capital Surplus
C-1
$
1,333.62
Deferred Charges to Future Taxation - Unfunded
C-5
_lli528.54
$
312,862.16
uc-au
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
31,2016
INCREASED
DECREASED
31.2017
2010-02
Improvements to Woolverton Street
09/23/10
9/16/2016
9/15/2017
1.20%
$
33,737.00
$
$
33,737.00
$
9/15/2017
9/14/2018
1.73%
32,711.00
32,711.00
2011-01
Improvements to Old Prallsville Road
09/21/12
9/16/2016
9/15/2017
1.20%
141,370.00
141,370.00
9/15/2017
9/1412018
1.73%
134,190.00
134,190.00
2016-08
Reconstruction of Glenwood Lane
9/15117
9/15/2017
9/14/2018
1.73%
300,000.00
300,000.00
$
175,107.00
$
466,901.00
$
175, 107.00
$
466,901.00
REF.
c
C-2
C:C-5
Disbursements
C-2
$
166,902.00
Paid by Budget
C-5
8,205.00
$
175,107.00
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
REF.
Balance, December 31, 2016
c
$
231,507.95
Increased by:
2017 Budget Appropriation
C-2
28,000.00
Balance, December 31, 2017
c
$
259 507.95
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF INTERFUNDS
WATER
CURRENT
CAPITAL
REF.
TOTAL
FUND
FUND
Balance, December 31, 2016:
Due From
c
$
11,256.01
$
10,696.63
$
559.38
Receipts
C-2
10,726.00
10,726.00
Disbursements
C-2
484.87
484.87
Balance, December 31, 2017:
Due From
c
$
1,014.88
$
455.50
$
559.38
Balance, December 31, 2016
Decreased by:
N.J.E.l.T. Loans Paid by Budget
Green Trust Loans Paid by Budget
Balance, December 31, 2017
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF DEFERRED CHARGES
TO FUTURE TAXATION FUNDED
REF.
c
C-13
$
C-12
c
$
354,374.37
29,483.49
10,553.72
40,037.21
$
314,337.16
"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, 2017
INTEREST
DECEMBER
DECEMBER
IMPROVEMENT DESCRIPTION
ISSUE
ISSUE
DATE
AMOUNT
RATE
31. 2016
DECREASED
31.2017
Open Space Acquisition
01/07/2005
$
200,000.00
2018
$
10,765.86
2.00%
2019
10,98224
2.00%
2020
11,202.99
2.00%
2021
11,428.17
2.00%
2022
11,657.88
2.00%
2023
11,892.20
2.00%
2024
12,131.23
2.00%
2025
6,156.74
2.00%
$
96,771.03
$
10,553.72
$
86,217.31
REF.
c
C-11
c
~
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, 2017
INTEREST
DECEMBER
DECEMBER
IMPROVEMENT DESCRIPTION
ISSUE
ISSUE
DATE
AMOUNT
RATE
31,2016
DECREASED
31,2017
Mill Street
11/09/2006
$
300,000.00
08/01/18-19
$
15,000.00
4.000%
$
$
$
08/01/20
20,000.00
4.000%
08/01121-22
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%
190,000.00
15,000.00
175,000.00
Mill Street
11/09/2006
282,975.00
2018
14,105.87
2019
13,728.23
2020
16,497.49
2021
8,788.26
67,603.34
14,483.49
____g 119.85
$
257,603.34
$
29,483.49
$
228,119.85
REF.
c
C-11
c
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF RESERVE FOR RECEIVABLES
Balance. December 31, 2016
c
$
222,000.00
Decreased by:
Grants Received
C-5
89,350.55
Balance. December 31, 2017
c
$
132,649.45
=======
SCHEDULE OF CONTRACTS PAYABLE
Balance, December 31, 2016
c
$
10,479.50
Increased by:
2017 Contracts
C-7
157,653.19
$
168, 132.69
Decreased by:
Disbursements
C-2
152,424.65
Balance, December 31, 2017
c
$
15,708.04
BOROUGH OF STOCKTON
GENERAL CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
ORDINANCE
NUMBER
2005-06
2012-08
IMPROVEMENT DESCRIPTION
Reconstruction of Mill Street
Road and Drainage Improvements - Wilson Drive
$
BALANCE
DECEMBER
31.2017
104,798.06
91,389.93
$
196,187.99
Balance, December 31, 2016
Increased by Receipts:
Capital Improvement Fund
Collections
lnterfunds
Bond Anticipation Notes
Miscellaneous Revenue Not Anticipated
Decreased by Disbursements:
2017 Appropriations
2016 Appropriation Reserves
Accrued Interest
Contracts Payable
Bond Anticipation Notes
lnterfunds
Balance, December 31, 2017
BOROUGH OF STOCKTON
WATER UTILITY FUND
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31. 2017
REF.
OPERATING
D
$
266,016.31
D-12
$
D-6
84,309.65
D-9:D-16
0-17
D-2
487.46
84,797.11
$
350,813.42
D-3
$
69,866.18
D-8
5,201.26
D-7
2,611.25
D-19
D-17
D-9:0-16
20,280.84
97,959.53
D
$
252,853.89
"D-4"
CAPITAL
$
$
7,000.00
20,280.84
214,218.00
241,498.84
$
241,498.84
$
27,280.84
214,218.00
241,498.84
$
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
SCHEDULE OF ENCUMBRANCES PAYABLE
REF.
Balance, December 31, 2016
D
$
2,480.74
Increased by:
Transferred from 2017 Appropriation
D-3
3,631.17
$
6, 111.91
Decreased by:
Transferred to Appropriation Reserves
D-8
1,780.74
Balance, December 31, 2017
D
$
4,331.17
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
SCHEDULE OF CONSUMER ACCOUNTS RECEIVABLE
Balance, December 31, 2016
Increased by:
Water Rents Levied - Net
Decreased by:
Collection
Canceled
Balance, December 31, 2017
D
D-2:D-4
D
$
84,309.65
35.00
$
1,114.08
84,454.82
$
85,568.90
84,344.65
$
1,224.25
======
SCHEDULE OF ACCRUED INTEREST ON BONDS, NOTES AND LOANS
Balance, December 31, 2016
D
$
655.34
Increased by:
Charges to Budget Appropriations
D-3
2,716.00
$
3,371.34
Decreased by:
Disbursements
D-4
2,611.25
Balance, December 31, 2017
D
$
760.09
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
SCHEDULE OF 2016 APPROPRIATION RESERVES
BALANCE
BALANCE
DECEMBER
AFTER
PAID OR
BALANCE
31, 2016
TRANSFERS
CHARGED
LAPSED
Operating
Salaries and Wages
$
7.59
$
7.59
$
$
7.59
Other Expenses
34,552.84
36,333.58
5,201.26
31,132.32
Contributions to
Social Security System (OAS I)
0.12
0.12
0.12
$
34,560.55
$
36,341.29
$
5,201.26
$
31, 140.03
REF.
D
D-4
D-1
Balance, December 31, 2016
D-8
$
34,560.55
Encumbrances Payable
D-5
1,780.74
$
36,341.29
BOROUGH OF STOCKTON
WATER UTILITY OPERATING FUND
SCHEDULE OF INTERFUNDS
SEWER
WATER
OPERATING
CAPITAL
REF.
TOTAL
FUND
FUND
Balance, December 31, 2016:
Due To
D
$
51,806.48
$
560.16
$
51,246.32
Decreased by:
Disbursements
D-4
20,280.84
20,280.84
Balance, December 31, 2017:
Due To
D
$
31,525.64
$
560.16
$
30,965.48
"D-10"
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
BALANCE
BALANCE
ORDINANCE
ORDINANCE
DECEMBER 31, 2016
2017
PAID OR
DECEMBER 31, 2017
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
$
0.30
$
$
$
$
0 30
$
2008-11
Acquisition and Installation of Capital Equipment
11/10/2008
20,000.00
0.48
0.48
2011-05
Acquisition and Installation of Capital Equipment
11/14/2011
15,000.00
15,000.00
8,000.00
7,000.00
2012-04
Pump Station Repairs
03/12/2012
175,000.00
10,466.72
8,089.00
2,377.72
2014-04
Improvements to Water Utility
08/11/2014
50,000.00
81.73
81.73
2015-07
Purchase and Installation of Equipment
09/14/2015
10,000.00
3,155.64
2,686.73
468.91
2016-10
Purchase and Installation of Equipment
10/10/2016
15,000.00
15,000.00
13,500.00
1,500.00
2017-03
Purchase and Installation of Equipment
04110/2017
10,000.00
10,000.00
6,900.11
3,099.89
$
33~
$
10,548.45
$
10,000.00
$
39, 175.84
$
12,069.58
$ ~59.45
REF.
D
D
D-18
D-19
D
D
ORDINANCE
NUMBER
IMPROVEMENT DESCRIPTION
General Improvements:
2006-21
Purchase and Installation of Equipment
2007-11
Purchase and Installation of Equipment
2011-05
Purchase and Installation of Equipment
2014-04
Improvements to Water Utility
2012-04
Pump Station Repairs
2015-07
Purchase and Installation of Equipment
2016-10
Purchase and Installation of Equipment
2017-03
Purchase and Installation of Equipment
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR DEFERRED AMORTIZATION
DATE OF
ORDINANCE
12/01/2006
10/29/2007
11/14/2011
08/11/2014
03/12/2012
09/14/2015
10/10/2016
04/10/2017
REF.
$
$
BALANCE
DECEMBER
31.2016
10,000.00
10,000.00
15,000.00
2,500.00
4,431.00
10,000.00
15,000.00
66,931.00
D
INCREASED BY
FIXED
NOTES
CAPITAL
PAID BY
AUTHORIZED
BUDGET
$
$
1,636.00
2,215.00
10,000.00
$
10,000.00
$
3,851.00
D-15
D-17
$
$
"D-11"
BALANCE
DECEMBER
31,2017
10,000.00
10,000.00
15,000.00
4,136.00
6,646.00
10,000.00
15,000.00
10,000.00
80,782.00
D
Balance, December 31, 2016
Increased by
2017 Budget Appropriation
Balance, December 31, 2017
Balance, December 31, 2016
and December 31, 2017
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
REF.
D
D-4
D
SCHEDULE OF RESERVE FOR AMORTIZATION
D
$
10,983.07
7,000.00
$
17,983.07
$
402,376.93
===:::::i::::===
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL
ACCOUNT
Unallocated Balance of 1938 and Prior
Fire Hydrants
Pumping Equipment
Spring and Wells
Storage Tanks
Distribution Mains and Accessories
Purification System
General Equipment
General Construction Expenditures
Meters
Generator
Thermal Coil Meter Pits
Touch Reader
Painting of Various Buildings
Roof Replacements
Purchase and Installation of Water Meters (Ord. 11/12/73)
Repairs and Construction of a Cover for the Reservoir of
the Water System (Ord 11/12/73)
Improvement to the Water Supply System (12/11/74)
Construction of a Water Main Extension (Ord. 04/28/86)
Water Line on Route 523 and Broad Street
Water Tower Pipe Extension
Water Tank Painting
Replacement of Water Line on Ferry Street
Water Line Construction
Water Main Construction on Mill Street
Water Tank Renovations
Well House Renovations
Capital Outlay
Construction of New Water Services on Broad and Bridge Street
Painting of the Water Tank
Authorizing New Services on Railroad Avenue and Main Street
Preparation of EPA Application
$
BALANCE
DECEMBER
31, 2016
AND 2017
7,523.00
15,167.00
32,948.00
3,998.00
12,574.00
27, 136.00
1,766.00
8,915.00
3,674.00
1,145.00
10,843.00
1,781.00
400.00
1,455.00
1,050.00
13,877.00
10, 100.00
2,283.00
49,650.00
35,048.00
1,18500
2,227.00
56,000.00
4,630.00
1,390.00
1,152.00
2,423.00
11,575.00
10,163.00
57,035.00
6,500.00
6,763.93
$
402,376.93
========
D
"D-15"
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
BALANCE
BALANCE
ORDINANCE
ORDINANCE
DECEMBER
DECEMBER
NUMBER
IMPROVEMENT DESCRIPTION
DATE
AMOUNT
31,2016
AUTHORIZED
31,2017
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
2016-10
Purchase and Installation of Equipment
10/10/2016
15,000.00
15,000.00
15,000.00
2017-03
Purchase and Installation of Equipment
04/10/2017
10,000.00
10,000.00
10,000.00
$
305,000.00
$
10,000.00
$
315,000.00
REF.
D
D-11
D
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF INTERFUNDS
GENERAL
WATER
CAPITAL
OPERATING
REF.
TOTAL
FUND
FUND
Balance, December 31, 2016:
Due From
D
$
51,246.32
$
$
51,246.32
Due To
D
559.38
559.38
Increased by:
Receipts
D-4
20,280.84
20,280.84
Balance, December 31, 2017:
Due From
D
$
30,965.48
$
$
30,965.48
Due To
D
559.38
559.38
"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
31,2016
INCREASED
DECREASED
31,2017
2012-04
Pump Station Repairs
09/21/2012
09/16/2016
09115/2017
1.20%
$
170,569.00
$
$
170,569.00
$
09/15/2017
09/14/2018
1.73%
168,354.00
168,354.00
2014-04
Improvements to Water Utility
09/19/2014
09/16/2016
09/15/2017
1.20%
47,500.00
47,500.00
09/15/2017
09/14/2018
1.73%
45,864.00
45,864.00
$
218,069.00
$
214,218.00
$
218,069.00
$
214,218.00
REF.
D
D-4
D
Paid by Budget
D-11
$
3,851.00
Disbursements
D-4
214,218.00
$
218,069.00
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR MISCELLANEOUS DEPOSITS - CAPITAL OUTLAY
APPROPRIATED
BALANCE
TO FINANCE
BALANCE
DECEMBER
IMPROVEMENT
DECEMBER
ITEM
31. 2016
AUTHORIZATION
31. 2017
Capital Outlay
$
15,000.00
$
10,000.00
$
5,000.00
$
15,000.00
$
10,000.00
$
5,000.00
REF.
D
D-10
D
BOROUGH OF STOCKTON
WATER UTILITY CAPITAL FUND
SCHEDULE OF CONTRACTS PAYABLE
REF.
Balance, December 31, 2016
D
$
999.00
Increased by
Contracts Issued
D-10
39, 175.84
$
40,174.84
Decreased by:
Disbursements
D-4
27,280.84
Balance, December 31, 2017
D
$
12,894.00
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
IMPROVEMENT DESCRIPTION
Acquisition and Installation of Capital Equipment
BALANCE
DECEMBER
31, 2017
$
20,000.00
------'-----
$
20,000.00
Balance, December 31, 2016
Increased by Receipts:
Consumer Accounts Receivable
Miscellaneous
lnterfunds
Bond Anticipation Notes
Capital Improvement Fund
Decreased by Disbursements:
2017 Appropriations
2016 Appropriation Reserves
lnterfunds
Improvement Authorizations
Accrued Interest
Balance, December 31, 2017
BOROUGH OF STOCKTON
SEWER UTILITY FUND
SCHEDULE OF CASH - TREASURER
FOR THE YEAR ENDED DECEMBER 31. 2017
REF.
OPERATING
E
$
542,107.18
E-7
$
273,807.89
E-3
1,905.71
E-8:E-14
45,675.00
E-22
E-12
321,388.60
$
863,495.78
E-4
$
239,062.63
E-10
25,978.76
E-8:E-14
525.00
E-15
E-6
7,313.34
272,879.73
E
$
590,616.05
"E-5"
CAPITAL
$
-0-
$
525.00
30,000.00
25,000.00
55,525.00
$
55,525.00
$
45,675.00
9,850.00
55,525.00
$
-0-
"E-6"
BOROUGH OF STOCKTON
SEWER UTILITY OPERATING FUND
SCHEDULE OF ACCRUED INTEREST
REF.
Balance, December 31, 2016
E
$
4,296.31
Increased by
Charges to 2017 Budget
E-4
5,677.37
$
9,973.68
Decreased by:
Disbursements
E-5
7,313.34
Balance, December 31, 2017
E
$
2,660.34
ANALYSIS OF BALANCE
Accrued Interest on Bonds
$
254.09
Accrued Interest on Loans
2,406.25
E-6
$
2,660.34
BOROUGH OF STOCKTON
SEWER UTILITY OPERATING FUND
SCHEDULE OF CONSUMER ACCOUNTS RECEIVABLE
Balance, December 31, 2016
E
$
7,000.05
Increased by:
Sewer Use Charges Levied - Net
275,885.92
$
282,885.97
Decreased by:
Collections
E-5
$
273,807.89
Overpayments Applied
E-21
601.10
E-3
274,408.99
Ba~nce, December31,2017
E
$
8,476.98
BOROUGH OF STOCKTON
SEWER UTILITY OPERATING FUND
SCHEDULE OF INTERFUNDS
SEWER
WATER
CAPITAL
OPERATING
REF.
TOTAL
FUND
FUND
Balance, December 31, 2016:
Due from
E
$
560.16
$
$
560.16
Due to
E
141,712.18
141,712.18
Receipts
E-5
45,675.00
45,675.00
Disbursements
E-5
525.00
525.00
Balance, December 31, 2017:
Due from
E
$
560.16
$
$
560.16
Due to
E
186,862.18
186,862.18
BOROUGH OF STOCKTON
SEWER UTILITY OPERATING FUND
SCHEDULE OF ENCUMBRANCES PAYABLE
REF.
Balance, December 31, 2016
E
$
4,622.00
Increased by:
Transfer from 2017 Appropriations
E-4
558.63
$
5, 180,63
Decreased by:
Transfer to Appropriation Reserves
E-10
4,622.00
Balance, December 31, 2017
E
$
558.63
"E-10"
BOROUGH OF STOCKTON
SEWER UTILITY OPERATING FUND
SCHEDULE OF 2016 APPROPRIATION RESERVES
BALANCE
BALANCE
DECEMBER
AFTER
PAID OR
BALANCE
fil_, 2016
TRANSFERS
CHARGED
LAPSED
Operating:
Salaries and Wages
$
7.59
$
7.59
$
$
7.59
Other Expenses
67,446.24
72,068.24
25,978.76
46,089.48
Capital Outlay
12,329.39
12,329.39
12,329.39
Social Security
2.93
2.93
2.93
$
79,786.15
$
84,408.15
$
25,978.76
$
58,429.39
REF.
E
E-5
E-1
Balance, December 31, 2016
E-10
$
79,786.15
Encumbrances Payable
E-9
4,622.00
$
84,408.15
"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, 2017
DECEMBER
DECEMBER
IMPROVEMENT DESCRIPTION
ISSUE
ISSUE
RATE
DATE
AMOUNT
31.2016
DECREASED
31.2017
N.J. Environmental Infrastructure Trust Loan
10/15/2000
$
495,000.00
5.25%
08/01/18
$
35,000.00
5.25%
08/01/19
35,000.00
5.25%
08/01/20
40,000.00
$
145,000.00
$
35,000.00
$
110,000.00
REF.
E
E-17
E
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF CAPITAL IMPROVEMENT FUND
Balance, December 31, 2016
E
$
135,110.00
Increased by:
Receipts
E-5
25,000.00
Balance, December 31, 2017
E
$
160,110.00
=======
ORDINANCE
NUMBER
2008-12
2015-01
2015-08
2016-09
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
ORDINANCE
IMPROVEMENT DESCRIPTION
DATE
AMOUNT
Acquisition and Installation of Capital Equipment
11/10/2008
$
20,000.00
Acquisition and Installation of Capital Equipment
02/09/2015
10,000.00
Acquisition and Installation of Capital Equipment
09/14/2015
10,000.00
Sewer I Pump Station Emergency Repair
10/10/2016
30,000.00
REF.
"E-13"
BALANCE
DECEMBER
31,2016
AND 2017
$
20,000.00
10,000.00
10,000.00
30,000.00
$
70,000.00
E
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF INTERFUNDS
SEWER
OPERATING
REF.
TOTAL
FUND
Balance, December 31, 2016:
Due from
E
$
141,712.18
$
141,712.18
Receipts
E-5
525.00
525.00
Disbursements
E-5
45,675.00
45,675.00
Balance, December 31, 2017:
Due from
E
$
186,862.18
$
186,862.18
"E-15"
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
BALANCE
BALANCE
ORDINANCE
ORDINANCE
DECEMBER 31, 2016
PAID OR
DECEMBER 31, 2017
NUMBER
IMPROVEMENT DESCRIPTION
DATE
AMOUNT
FUNDED
UNFUNDED
CHARGED
FUNDED
UNFUNDED
2008-12
Acquisition and Installation of Capital Equipment
11/10/2008
$
20,000.00
$
$
20,000.00
$
5,350.00
$
$
14.650.00
2015-01
Acquisition and Installation of Capital Equipment
02/9/2015
10.000.00
450.75
450.75
2015-08
Acquisition and Installation of Capital Equipment
09/14/2015
10,000.00
4,030.10
4,000 00
30.10
2016-09
Sewer I Pump Station Emergency Repair
10/10/2016
30,000.00
30,000.00
500.00
29.500.00
$
4,480.85
$
50.000.00
$
9,850.00
$
480.85
$
44, 150.00
REF.
E
E
E-5
E
E
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF FIXED CAPITAL
BALANCE
BALANCE
DECEMBER
DECEMBER
ACCOUNT
31,2017
31, 2016
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
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR AMORTIZATION
REF.
Balance, December 31, 2016
E
$
2,636,942.74
Increased by:
Bonds Paid by Budget
E-19
$
30,255.34
Loans Paid by Budget
E-11
35,000.00
65,255.34
Balance, December 31, 2017
E
$
2,702,198 08
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR DEFERRED AMORTIZATION
Balance, December 31, 2016
and December 31, 2017
E
SCHEDULE OF RESERVE FOR CAPITAL IMPROVEMENTS
Balance, December 31, 2016
and December 31, 2017
E
$
20,000.00
=======
$
3,000 00
=======
"E-20"
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF BONDS PAYABLE
DATE OF
AMOUNT OF
OUTSTANDING
BALANCE
BALANCE
ORIGINAL
ORIGINAL
DECEMBER 31, 2017
DECEMBER
DECEMBER
IMPROVEMENT DESCRIPTION
ISSUE
ISSUE
DATE
AMOUNT
31,2016
DECREASED
31.2017
Sewer Improvements
1979
$
591,000.00
12/02/18
$
31,768.10
12/02/19
33,569.82
$
95,593.26
$
30,255.34
$
65,337.92
REF.
E
E-17
E
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF RESERVE FOR SEWER OVERPAYMENTS
Balance, December 31, 2016
E
$
601.10
Decreased by:
Applied to Receivable
E-7
$
601.10
======
ORDINANCE
IMPROVEMENT DESCRIPTION
2016-09
Pump Station Repairs
BOROUGH OF STOCKTON
SEWER CAPITAL FUND
SCHEDULE OF BOND ANTICIPATION NOTES
DATE OF
ISSUE OF
ORIGINAL
NOTE
09/15/2017
DATE OF
ISSUE
09/15/2017
DATE OF
INTEREST
MATURITY
RATE
09/14/2018
1.73%
"E-22"
BALANCE
DECEMBER
INCREASED
n2011
$
30,000.00
$
30,000.00
$
30,000.00
$
30,000.00
REF.
E-5
E
BOROUGH OF STOCKTON
SEWER UTILITY CAPITAL FUND
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
IMPROVEMENT DESCRIPTION
Repair and Improvement of the Wastewater Collection System
Acquisition and Installation of Capital Equipment
$
BALANCE
DECEMBER
31,2017
2,120.48
20,000.00
$
22,120.48
THIS PAGE INTENTIONALLY LEFT BLANK
PARTll
BOROUGH OF STOCKTON
STATISTICAL DATA
LIST OF OFFICIALS
COMMENTS AND RECOMMENDATIONS
YEAR ENDED DECEMBER 31, 2017
COMPARATIVE STATEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE - CURRENT FUND
YEAR 2017
YEAR 2016
AMOUNT
%
AMOUNT
%
REVENUE AND OTHER INCOME REALIZED
Fund Balance Utilized
$
165,000.00
7.26% $
163,000.00
6.28%
Miscellaneous-from other than Local Property
Tax Levies
199,986.25
8.80%
486,100.00
18.73%
Collection of Delinquent Taxes and Tax Title Liens
12,843.00
0.57%
35,028.36
1.35%
Collection of Current Tax Levy
1,895,243.59
83.37%
1,911,090.91
73.64%
TOTAL INCOME
$
2,273,072.84
100.00% $
2,595,219.27
100.00%
EXPENDITURES
Budget Expenditures:
Municipal Purposes
$
552,632.79
24.32% $
822,159.85
34.72%
County Taxes
346,862.73
15.26%
347,682.36
14.68%
School Taxes
1, 178,294.00
51.85%
1,198,318.00
50.60%
Other
194,779.52
8.57%
TOTAL EXPENDITURES
$
2,272,569.04
100.00% $
2,368, 160.21
100.00%
Excess in Revenue
$
503.80
$
227,059.06
Adjustments to Income before Fund Balance:
Expenditures Included above which are by Statute
Deferred Charges to Budget of Succeeding Year
11,153.13
Statutory Excess of Fund Balance
$
503.80
$
238,212.19
Fund Balance, January 1
432,382.12
357,169.93
$
432,885.92
$
595,382.12
Less: Utilization as Anticipated Revenue
165,000.00
163,000.00
Fund Balance, December 31
$
267,885.92
$
432,382.12
33
COMPARATIVE STATEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE-WATER UTILITY FUND
YEAR 2017
YEAR 2016
AMOUNT
%
AMOUNT
%
REVENUE AND OTHER INCOME REALIZED
Fund Balance Utilized
$
13,000.00
10.08% $
13,195.00
9.95%
Collection of Water Rents
84,309.65
65.39%
86,224.17
65.00%
Miscellaneous-from other than Water Rents
31,627.49
24.53%
33,225.41
25.05%
TOTAL INCOME
$
128,937.14
100.00% $
132,644.58
100.00%
EXPENDITURES
Budget Expenditures:
Operating
$
83,000.00
84.59% $
83,449.00
85.63%
Deferred Charges and Statutory Expenditures
1,550.00
1.58%
1,501.00
1.54%
Debt Service
6,567.00
6.69%
5,502.09
5.65%
Capital Improvements
7,000.00
7.14%
7,000.00
7.18%
TOTAL EXPENDITURES
$
98,117.00
100.00% $
97,452.09
100.00%
Excess in Revenue to Fund Balance
$
30,820.14
$
35,192.49
Fund Balance, January 1
176,513.20
154,515.71
$
207,333.34
$
189,708.20
Utilization as Anticipated Revenue
13,000.00
13,195.00
Fund Balance, December 31
$
194,333.34
$
176,513.20
34
COMPARATIVE STATEMENT OF OPERATIONS AND
CHANGE IN FUND BALANCE-SEWER UTILITY FUND
YEAR 2017
YEAR 2016
AMOUNT
%
AMOUNT
%
REVENUE AND OTHER INCOME REALIZ!;D
Fund Balance Utilized
$
22,800.00
6.38% $
22,800.00
6.05%
Collection of Sewer Rents
274,408.99
76.75%
285,999.35
75.94%
Miscellaneous - from other than Sewer Rents
60,335.10
16.87%
67,813.96
18.01%
TOTALJNCOME
$
357,544.09
100.00% $
376,613.31
100.00%
EXPENDITURES
Budget Expenditures:
Operating
$
173,352.50
58.55% $
168,450.00
57.67%
Deferred Charges and Statutory Expenditures
1,800.00
0.61%
1,503.81
0.51%
Debt Service
50,000.00
16.89%
37,329.39
12.78%
Capital Improvements
70,932.71
23.95%
84,812.56
29.04%
TOTAL EXPENDITURES
$
296,085.21
100.00% $
292,095.76
100.00%
Excess in Revenue
$
61,458.88
$
84,517.55
Fund Balance, January 1
311,649.60
249,932.05
$
373, 108.48
$
334,449.60
Utilization as Anticipated Revenue
22,800.00
22,800.00
Fund Balance. December 31
$
350,308.48
$
311,649.60
35
COMPARATIVE SCHEDULE OF TAX RA TE INFORMATION
Tax Rate
Appointment of Tax Rate:
Municipal
County
County Open Space
County Library
Regional School
Assessed Valuations:
2017
2016
2015
$
2017
$2.095
$0.434
0.315
0.031
0.032
1.283
93,930,579.00
$
92,770,853.00
2016
$2.081
$0.414
0.313
0.031
0.032
1.291
$
93, 131,630.00
COMPARISON OF TAX LEVIES AND COLLECTION CURRENTLY
2015
$2.065
$0.402
0.307
0.030
0.031
1.295
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.
2017
2016
2015
$
Tax Levy
1,926,783.62
$
1,930,561.45
1,925,485.20
Currently
Cash
Percentage of
Collections
Collection
1,895,243.59
1,911,090.91
1,884,348.50
36
98.36%
98.99%
97.86%
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
2017
$
29,708.84
$
29,708.84
1.54%
2016
12,878.09
12,878.09
0.67%
2015
35,028.36
35,028.36
1.82%
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
2017
$
84,454.82
$
84,309.65
2016
84,228.90
83,114.82
2015
85,617.87
85,328.05
*
Includes Collection of Prior Year Levies
COMPARISON OF SEWER UTILITY LEVIES
CASH
YEAR
LEVY
COLLECTIONS
2017
$
275,885.92
$
274,408.99
2016
277,894.68
270,894.63
2015
281,907.20
277,675.95
*
Includes Collection of Prior Year Levies
37
COMPARATIVE SCHEDULE OF FUND BALANCES
UTILIZED
BALANCE
IN BUDGET OF
YEAR
DECEMBER 31
SUCCEEDING YEAR
2017
$
267,885.92
$
165,000.00
2016
432,382.12
165,000.00
Current Fund
2015
357, 169.93
163,000.00
2014
308,028.64
163,000.00
2013
300,963.66
163,000.00
2017
$
194,333.34
$
17,000.00
2016
176,513.20
13,000.00
Water Utility Operating Fund
2015
154,515.71
13,195.00
2014
157,695.16
13,000.00
2013
138,577.45
-0-
2017
$
350,308.48
$
52,800.00
2016
311,649.60
22,800.00
Sewer Utility Operating Fund
2015
249,932.05
22,800.00
2014
274,863.98
26,954.30
2013
241,418.20
-0-
38
OFFICIALS IN OFFICE AND SURETY BONDS
The following officials were in office during the period under audit:
Timothy Nemeth
Nie Messina
Donald Vandegrift
Aaron Lipsen
Tony Grecco
Adam Juncosa
Kathryn Steffanelli
Donna Griffiths
Michele Hovan
Diane McDaniel
Michelle Trivigno
Edward Martin
Cindy Hooven
Mayor
Council President
Councilman
Councilman
Councilman
Councilman
Councilwoman
Tax/Utilities Collector,
Deputy Clerk
Borough Clerk/Administrator,
Registrar of Vital Statistics
Chief Municipal Finance Officer
Assessor
Magistrate
Court Administrator
All bonds were examined and were properly executed.
39
AMOUNT
OF BOND
$80,000.00
$250,000.00
NAME OF SURETY
Selective Insurance Company
Selective Insurance Company
GENERAL COMMENTS AND RE COMMENDATIONS
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 July 1, 2015, the bid threshold in accordance with N.J.S.A. 40A:11-3 was
increased to $40,000.00 by resolution of the governing body.
The governing body of the Municipality has the responsibility of determining whether the
expenditures in any category will exceed $40,000.00 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.
Glenwood Lane Improvement Project
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 $40,000.00 "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 2017 for the following professional
services:
Borough Auditor
Borough Engineer
Borough Attorney
Planning Board Attorney
Bond Counsel
Our audit discovered The Borough does not always award professional service contracts
with not to exceed amounts. It was also noted that not all vendors were awarded contracts per
resolution of the Governing Body as required.
40
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 2, 2017 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 2017.
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 2017.
The following comparison is made of the number of tax title liens receivable on
December 31st of the last three years:
NUMBER OF LIENS
2017
None
2016
None
2015
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.
41
OTHER COMMENTS
lnterfunds
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.
Segregation of Duties
Consideration should be given to provide more adequate segregation of duties with
respect to the recording and treasury functions.
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.
42
RECOMMENDATIONS
*That the Borough issue a purchase order prior to the purchase of any goods or services.
That all purchases be made in accordance with the local Public Contracts law.
*Prior Year Recommendations
43
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local preference
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performance bond
Evidence Detected
"...pation Notes - Capital Fund Schedule of Bonds and Notes Authorized But Not Issued - Capital Fund PART II Statistical Data Officials in Office and Surety Bonds General Comments and Recommendations EXHIBITS "E-5" "E-6" "E-7" "E-8" "E-9" "E-10" "E-11" "E-12" "E-13" "E-14" "E-15" "E-16" "E-17"..."
liquidated damages
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Timeline
First Discovered
Apr 2, 2026
Last Info Update
Apr 2, 2026
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