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Executive Summary
This document represents the audited financial statements for the City of Union City, New Jersey, for the fiscal years ended June 30, 2014, and 2013. It includes the reports of independent auditors, letters of comments, and recommendations. The audit covers the financial statements of various funds, including the Current Fund, Trust Funds, General Capital Fund, and Fixed Assets, and also includes supplementary information and reports on federal and state grant programs. The financial statements are prepared on a regulatory basis accounting, which differs from generally accepted accounting principles (GAAP).
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--- Document: Annual Financial Statement (Audited) Document ---
CITY OF UNION CITY
NEW JERSEY
AUDIT OF FINANCIAL STATEMENTS
AND
FEDERAL AND STATE GRANT PROGRAMS
FOR THE YEARS ENDED JUNE 30, 2014 AND 2013
WITH
REPORTS OF INDEPENDENT AUDITOR’S
AND
LETTERS OF COMMENTS AND RECOMMENDATIONS
CITY OF UNION CITY
TABLE OF CONTENTS
JUNE 30, 2014
EXHIBIT
PAGE
INTRODUCTORY SECTION
Independent Auditor's Report
1 - 4
FINANCIAL SECTION
Current Fund
Comparative Balance Sheets
A
Comparative Statements of Operations and Change
in Fund Balance
A-1
Statement of Revenues
A-2
Statement of Expenditures
A-3
Trust Funds
Comparative Balance Sheets
B
General Capital Fund
Comparative Balance Sheets
C
Statement of Fund Balance
C-1
Fixed Assets
Comparative Balance Sheets
D
NOTES TO THE FINANCIAL STATEMENTS
5 - 38
SUPPLEMENTARY INFORMATION SECTION
Current Fund
Schedule of:
Cash - Treasurer
A-4
Petty Cash
A-5
Cash - Tax Collector
A-6
Taxes Receivable
A-7
Tax Overpayments
A-8
Foreclosed Property at Assessed Valuation
A-9
Revenue Accounts Receivable
A-10
Interfunds Receivable / (Payable)
A-11
Due To the State of New Jersey for Senior Citizens'
and Veterans' Deductions
A-12
Tax Title Liens Receivable
A-13
CITY OF UNION CITY
TABLE OF CONTENTS
JUNE 30, 2014
EXHIBIT
PAGE
SUPPLEMENTARY INFORMATION SECTION (continued)
Current Fund (continued)
Schedule of:
Other Receivables
A-14
Appropriation Reserves
A-15
Other Intergovernmental Liabilities
A-16
Other Reserves
A-17
Prepaid Taxes
A-18
Local School District Taxes Payable
A-19
County Taxes Payable
A-20
Accounts Payable
A-21
Reserve for Encumbrances
A-22
Deferred Charges
A-23
Note Payable
A-24
Grants Receivables
A-25
Reserve for Grants - Unappropriated
A-26
Reserve for Grants - Appropriated
A-27
Reserve for Neighborhood Housing
A-28
Trust Funds
Schedule of:
Cash and Cash Equivalents - Dog License Fund
B-1
Due To the State of New Jersey - Dog License Fund
B-2
Reserve for Dog License Fund Expenditures
B-3
Due To Current Fund - Dog License Fund
B-4
Cash and Cash Equivalents - Other Trust Fund
B-5
Due From Property Owners Other Trust Fund
B-6
Due From General Capital Fund Other Trust Fund
B-7
Reserve for Other Trust Fund Activity
B-8
Due To Current Fund - Other Trust Fund
B-9
Reserve for Encumbrances Payable - Other Trust Fund
B-10
Cash and Cash Equivalents - CDA Fund
B-11
Due From HUD CDBG Grant - CDA Fund
B-12
Reserve for Program Income - CDA Fund
B-13
Reserve for Community Development Block Grant - CDA Fund
B-14
Due To Current Fund - CDA Fund
B-15
Cash and Cash Equivalents - Public Defender Trust Fund
B-16
CITY OF UNION CITY
TABLE OF CONTENTS
JUNE 30, 2014
EXHIBIT
PAGE
SUPPLEMENTARY INFORMATION SECTION (continued)
Trust Funds (continued)
Schedule of:
Reserve for Public Defender Trust Expenditures
B-17
Due From Current Fund - Public Defender Trust Fund
B-18
Accounts Payable - Public Defender Trust Fund
B-19
General Capital Fund
Schedule of:
Cash and Cash Equivalents
C-2
Analysis of Cash and Cash Equivalents
C-3
Schedule of:
Deferred Charges to Future Taxation - Unfunded
C-4
Deferred Charges to Future Taxation - Funded
C-5
Capital Improvement Fund
C-6
Improvement Authorizations
C-7
General Serial Bonds
C-8
School Serial Bonds
C-9
Capital Lease Payable - HCIA
C-10
Green Acres Loans Payable
C-11
Bond Anticipation Notes
C-12
Encumbrances Payable
C-13
Due From Current Fund
C-14
Bonds and Notes Authorized But Not Issued
C-15
Due From State of New Jersey - Green Acres
C-16
Due From State of New Jersey - Green Trust
C-17
Due From County of Hudson
C-18
Reserve for General Serial Bonds
C-19
Due To Other Trust Fund
C-20
Fixed Assets
Schedule of:
Fixed Assets - Aquisitions and Disposals
D-1
Reserve for Fixed Assets
D-2
CITY OF UNION CITY
TABLE OF CONTENTS
JUNE 30, 2014
EXHIBIT
PAGE
ACCOMPANYING INFORMATION SECTION
Schedule of:
Operations and Changes in Fund Balance
39
Tax Rate Information
40
Tax Levies and Collections
41
Delinquent Taxes and Tax Title Liens
42
Property Acquired by Tax Title Lien Liquidation
43
Fund Balances
44
Roster of Officials
45
SCHEDULE
PAGE
SINGLE AUDIT SECTION
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
46 - 48
Independent Auditor's Report on Compliance
For Each Major Federal and State Program and
on Internal Control Over Compliance Required by
OMB Circular A-133 and New Jersey OMB Circular 04-04
49 - 51
Schedule of Expenditures of Federal Awards
1
Schedule of Expenditures of State Financial Assistance
2
Schedule of Expenditures of Other Financial Assistance
3
Notes to Schedules of Expenditures of Federal Awards
and State Financial Assistance
52 - 54
Schedule of Findings and Questioned Costs:
Section 1 - Summary of Auditors' Results
55 - 56
Section 2 - Financial Statement Findings
57 - 58
Section 3 - Federal Award and State Financial Assistance
Findings and Questioned Costs
59 - 64
Summary Schedule of Prior Audit Findings and Questioned
Costs as Prepared by Management
65
GENERAL COMMENTS
General Comments
66 - 69
Comments and Recommendations
70 - 72
INTRODUCTORY SECTION
DONOHUE, GIRONDA & DORIA
Certified Public Accountants
310 Broadway
Bayonne, NJ 07002
(201) 437-9000
Fax: (201) 437-1432
E-Mail: dgd@dgdcpas.com
Matthew A. Donohue, CPA
Linda P. Kish, CPA, RMA
Robert A. Gironda, CPA
Tammy L. Zucca, CPA, RMA
Robert G. Doria, CPA (N.J. & N.Y.)
Mark W. Bednarz, CPA, RMA
Frederick J. Tomkins, CPA, RMA
Jason R. Gironda, CPA
INDEPENDENT AUDITOR’S REPORT
The Honorable Mayor and
Members of the Board of Commissioners
City of Union City, New Jersey
Report on the Financial Statements
We have audited the accompanying financial statements – regulatory basis of the City of Union
City, New Jersey (the “City”), which comprise the comparative balance sheet – regulatory basis,
of each fund and account group as of June 30, 2014 and 2013, and the related comparative
statement of operations and changes in fund balance – regulatory basis, of each fund, and the
statement of revenues – regulatory basis and statement of appropriations – regulatory basis, of
the Current Fund, for the years then ended, and the related notes to the financial statements,
which collectively comprise the City’s basic 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 financial reporting provisions of the Division of Local Government
Services, Department of Community Affairs, State of New Jersey (the “Division”). 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
misstatement, whether due to error or fraud.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America, audit requirements prescribed by the Division and the standards applicable to
the 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
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note A, the financial statements are prepared by the City on the basis of the
financial reporting provisions of the Division, which is a basis of accounting other than
accounting principles generally accepted in the United States of America, to comply with the
requirements of the Division. The effects on the financial statements of the variances between
the regulatory basis of accounting described in Note A 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 in the first paragraph do not present fairly, in accordance with accounting principles
generally accepted in the United States of America, the financial position of the City as of June
30, 2014 and 2013, or the changes in its financial position for the years then ended.
Opinion on Regulatory Basis Accounting
In our opinion, the financial statements referred to in the first paragraph present fairly, in all
material respects, the comparative financial position – regulatory basis, of each fund and account
group of the City as of June 30, 2014 and 2013, and each fund’s respective operations and
changes in fund balance – regulatory basis, and the Current Fund’s respective revenues –
regulatory basis and appropriations – regulatory basis, for the years then ended, on the basis of
the financial reporting provisions of the Division as described in Note A.
2
Other Matters
Required Supplementary Information
Management has omitted the management’s discussion and analysis that accounting principles
generally accepted in the United States of America require to be presented to supplement the
basic financial statements. Such missing information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. Our opinion on the basic financial statements is not
affected by the missing information.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The accompanying information
section and schedule of expenditures of other financial assistance are presented for purposes of
additional analysis and is not a required part of the basic financial statements. The
supplementary information and general section are presented for purposes of additional analysis
as required by the Division. The schedule of expenditures of federal awards and the schedule of
expenditures of state financial assistance are presented for purposes of additional analysis as
required by the U.S. Office of Management and budget Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations and N.J. Office of Management and Budget
Circular 04-04, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid,
respectively. The supplementary information, accompanying information section, general
section, schedule of expenditures of federal awards and schedule of expenditures of state
financial assistance are also not required parts of the basic financial statements.
The supplementary information, accompanying information section, general section, schedule of
expenditures of federal awards and the schedule of expenditures of state financial assistance are
the responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information
has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such
information to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our
opinion, the supplementary information, accompanying information section, general section,
schedule of expenditures of federal awards and the schedule of expenditures of state financial
assistance are fairly stated in all material respects in relation to the basic financial statements as a
whole.
The schedule of expenditures of other financial assistance has not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we do not
express an opinion or provide any assurance on it.
3
Emphasis of Matter
As described in Note 11, the City is the recipient of State Aid that is material to the City as
appropriated in the City's fiscal year 2015 budget. Minimum conditions on receipt of this aid are
set forth in a Memorandum of Understanding with the Director of the Division of Local
Government Services, Department of Community Affairs, State of New Jersey.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated April
8, 2015 on our consideration of the City’s internal control over financial reporting and our tests
of its compliance with certain provisions of laws, regulations, contracts and grant agreements
and other matters. The purpose of that report is to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide
an opinion on the internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in
considering the City’s internal control over financial reporting and compliance.
DONOHUE, GIRONDA & DORIA
Certified Public Accountants
FREDERICK J. TOMKINS
Registered Municipal Accountant #327
Bayonne, New Jersey
April 8, 2015
4
FINANCIAL SECTION
CURRENT FUND
1/2
See Accompanying Notes to the Financial Statements.
EXHIBIT A
THE CITY OF UNION CITY
CURRENT FUND
JUNE 30, 2014 AND 2013
COMPARATIVE BALANCE SHEETS
Ref.
2014
2013
ASSETS
Cash and Cash Equivalents
A-4
10,034,962
$
18,813,607
$
Change Fund
Unchanged
830
830
10,035,792
18,814,437
Other Assets:
Revenue Accounts Receivable
A-10
6,777,364
80,000
Grants Receivable
A-25
9,104,876
9,248,330
15,882,240
9,328,330
Deferred Charges
A-23
3,571,384
4,613,253
3,571,384
4,613,253
Receivables and Other Assets with Full Reserves:
Delinquent Taxes Receivable
A-7
187,172
110,490
Property Acquired for Taxes at Assessed Valuation
A-9
171,900
171,900
Tax Title Liens Receivable
A-13
81,018
56,989
Other Receivables
A-14
18,361
21,723
Interfunds Receivable:
Due from General Capital Fund
A-11
2,352,471
-
Due from Other Trust Fund
A-11
332,267
119,065
Due from Dog License Trust
A-11
172
8,463
Due from CDA Trust
A-11
-
86,971
A
3,143,361
575,601
Total Assets
32,632,777
$
33,331,621
$
2/2
See Accompanying Notes to the Financial Statements.
EXHIBIT A
THE CITY OF UNION CITY
CURRENT FUND
JUNE 30, 2014 AND 2013
COMPARATIVE BALANCE SHEETS
Ref.
2014
2013
LIABILITIES, RESERVES AND FUND BALANCE
Appropriation Reserves
A-3, A-15
1,846,123
$
2,326,329
$
Tax Overpayments
A-8
36,155
22,022
Prepaid Taxes
A-18
93,263
115,806
Accounts Payable
A-21
543,504
121,890
Reserve for Encumbrances
A-22
3,996,417
5,238,796
Reserve for Unappropriated Grants
A-26
15,803
81,093
Reserve for Appropriated Grants
A-27
2,163,470
1,599,278
Reserve for Neighborhood Housing
A-28
1,824
1,824
Other Reserves
A-17
227,180
748,501
Local School District Taxes Payable
A-19
12,334,910
13,876,773
Intergovernmental Payables:
Due to State of NJ - Sr. Citizens' & Veterans'
A-12
33,346
28,970
Other
A-16
2,428,867
1,765,475
Note Payable
A-24
2,560,000
3,200,000
Interfunds Payable:
Due to Capital Fund
A-11
-
1,281,613
Due to Other Trust Fund
A-11
-
-
Due to CDA Trust Fund
A-11
123,533
-
Due to Public Defender Trust Fund
A-11
-
1,363
26,404,395
30,409,733
Reserve for Receivables
Above
3,143,361
575,601
Total Liabilities
29,547,756
30,985,334
Fund Balance
A-1
3,085,021
2,346,287
Total Liabilities, Reserves and Fund Balance
32,632,777
$
33,331,621
$
1/2
See Accompanying Notes to the Financial Statements.
EXHIBIT A-1
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014 AND 2013
COMPARATIVE STATEMENTS OF OPERATIONS
AND CHANGE IN FUND BALANCE
Ref.
2014
2013
REVENUE AND OTHER INCOME REALIZED
Miscellaneous Revenue Anticipated
A-2
45,268,974
$
47,022,783
$
Receipts from Delinquent Taxes
A-2
74,121
108,729
Receipts from Current Taxes
A-2
99,643,523
96,428,494
Non-Budget Revenues
A-2
396,762
349,122
Unexpended Balances of Appropriations Cancelled
A-3
421,624
902,713
Other Credits to Income:
Dog License Fund - Statutory Excess
A-11
2,755
1,910
CDA Trust Fund - Grant Appropriation Cancelled
A-11
-
7,310
Unexpended Balance of Appropriation Reserves
A-15
706,448
284,120
Reimbursement of Prior Years' Library Expenditures
A-17
-
725,823
Accounts Payable Cancelled
A-21
-
813,716
Grants Receivable Adjustments
A-25
479,552
-
Grants Appropriated Reprogrammed
A-27
13,800
359,975
Interfunds Returned
A-11
123,533
-
Total Income
147,131,092
147,004,695
EXPENDITURES
Budget Appropriations
A-3
111,626,821
111,512,374
Local School District Taxes
A-2, A-19
15,418,637
15,418,637
County Taxes
A-2, A-20
16,413,178
18,109,605
Interest on Late County Tax Payments
A-4
-
22,906
Expenditures without Appropriations
A-4
14,000
18,782
Overexpenditure of Appropriation Reserves
A-4
208,214
-
Overexpenditures of Grants
A-4
17,477
-
Interfund Overexpenditures
A-4
-
19,336
Refunds of Prior Year Taxes
A-7
171,875
526,705
Tax Judgements on Prior Year Taxes
A-8
16,349
627,761
Interfund Advances Originating in Current Year
A-11
2,659,657
345,895
Other Receivable Cancelled
A-10
85,841
-
Grants Receivable Cancelled
A-25
-
246,956
Total Expenditures
146,632,049
146,848,957
Excess in Revenue
499,043
$
155,738
$
Adjustments to Income before Fund Balance:
Expenditures Included Above Which are by Statute
Deferred Charges to Budget of Succeeding Year:
Expenditures without Appropriations
A-23
14,000
18,782
Overexpenditures of Appropriation Reserves
A-23
208,214
-
Overexpenditures of Grants
A-23
17,477
-
Interfund Overexpenditures
A-23
-
19,336
239,691
38,118
2/2
See Accompanying Notes to the Financial Statements.
EXHIBIT A-1
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014 AND 2013
COMPARATIVE STATEMENTS OF OPERATIONS
AND CHANGE IN FUND BALANCE
Ref.
2014
2013
Statutory Excess to Fund Balance
738,734
$
193,856
$
Fund Balance, Beginning of Year
A
2,346,287
2,152,431
Fund Balance, End of Year
A
3,085,021
$
2,346,287
$
1/2
See Accompanying Notes to the Financial Statements.
EXHIBIT A-2
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
STATEMENT OF REVENUES
Excess or
Ref.
Budget
Realized
(Deficit)
Miscellaneous Revenues:
Local Revenues:
Licenses:
Alcoholic Beverage
A-10
210,000
$
216,648
$
6,648
$
Other
A-10
113,000
141,076
28,076
Fees and Permits
A-10
270,000
169,417
(100,583)
Fines and Costs:
Municipal Court
A-10
2,456,159
2,632,917
176,758
Interest and Costs on Taxes
A-10
510,000
440,695
(69,305)
Interest on Investments and Deposits
A-10
36,000
34,683
(1,317)
Wedding Fees
A-10
28,000
32,025
4,025
Cable Franchise Fees
A-10
180,000
230,467
50,467
Payment in Lieu of Taxes
Union Plaza Apartments
A-10
251,153
251,151
(2)
Union City Renaissance Urban Renewal
A-10
7,967
10,248
2,281
Palisade Urban Renewal Assoc.
A-10
22,638
40,786
18,148
Holy Rosary
A-10
37,160
20,288
(16,872)
Horizon Heights
A-10
7,893
14,973
7,080
Total Local Revenues
4,129,970
4,235,374
105,404
State Aid Without Offsetting Appropriations
Consolidated Municipal Property Tax Relief Aid
A-10
4,300,699
4,300,699
-
Energy Receipts Taxes
A-10
9,449,463
9,449,463
-
Additional State School Aid
A-10
1,427,475
1,427,475
-
Transitional Aid
A-10
18,000,000
18,000,000
-
Total State Aid Without Offsetting Appropriations
33,177,637
33,177,637
-
Dedicated Uniform Construction Code Fees Offset with Appropriations
Uniform Construction Code Fees
A-10
1,000,000
1,222,359
222,359
Special Items of Revenue - Interlocal Service Agreements
Union City Board of Education:
Lease Recreational Center
A-10
300,000
300,000
-
Solid Waste Removal
A-10
360,000
360,000
-
Gasoline
A-10
40,000
40,000
-
47th Street Pool
A-10
136,000
136,000
-
Off Duty Police Officers
A-10
80,000
80,000
-
Police Services
A-10
604,569
604,569
-
Snow Removal
A-10
100,000
20,437
(79,563)
School Crossing Guards
A-10
951,971
951,971
-
Total Special Items of Revenue - Interlocal Service Agreements
2,572,540
2,492,977
(79,563)
Special Items of Revenue - Public and Private Revenues
Summer Food Program
151,771
151,771
-
Drunk Driving Enforcement fund
15,748
15,748
-
Reserve for Grants Unapproriated:
Clean Communities
78,878
78,878
-
Alcohol Education
2,216
2,216
-
Byrne Justice Assistance Grant
27,424
27,424
-
Municipal Alliance
33,172
33,172
-
Municipal Alliance
57,412
57,412
-
Distracted Driving Crackdown
5,000
5,000
-
Click it or Ticket
4,000
4,000
-
New Jersey Departmet of Transporation -
West Street (Section 3)
650,000
650,000
-
West Street (Section 3)
349,090
349,090
-
Summit Avenue Section 3 (Discretionary Aid)
260,000
260,000
-
Hudson County Open Space -
Ellsworth Park Improvements
500,000
500,000
-
Total Special Items of Revenue - Public and Private Revenues
A-25
2,134,711
2,134,711
-
Special Items of Revenue - Other
Interfunds:
Due from CDA Trust Fund
A-10, A-11
98,997
98,997
-
Due from Other Trust Fund
A-10, A-11
119,065
119,065
-
Due from Dog License Trust Fund
A-10, A-11
6,553
6,553
-
Reserve for Payment of Debt - General Capital Fund
A-10, A-11
761,597
761,597
-
North Hudson Community Action Health Center Lease
A-10
106,560
97,680
(8,880)
Emergency Medical Services
A-10
500,000
711,178
211,178
2/2
See Accompanying Notes to the Financial Statements.
EXHIBIT A-2
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
STATEMENT OF REVENUES
Excess or
Ref.
Budget
Realized
(Deficit)
Special Items of Revenue - Other (Continued)
Five Year Abatement Program
A-10
50,000
210,846
160,846
Total Special Items of Revenue - Other
1,642,772
2,005,916
363,144
Total Miscellaneous Revenues
A-1
44,657,630
45,268,974
611,344
Receipts From Delinquent Taxes
A-1, A-7
99,208
74,121
(25,087)
Subtotal General Revenues and Fund Balance Anticipated
44,756,838
45,343,095
586,257
Amount to Be Raised by Taxes for Support of Municipal Budget
Local Tax for Municipal Purposes
64,876,792
$
65,818,517
$
941,725
$
Addition to Local District School Tax
966,765
966,765
-
Minimum Library Tax
1,026,426
1,026,426
-
Total Amount to Be Raised by Taxes for Support of Municipal Budget
Below, A-7
66,869,983
67,811,708
941,725
Non-Budget Revenues
Below, A-1, A-4
-
396,762
396,762
Total General Revenues
A-3
111,626,821
$
113,551,565
$
1,924,744
$
Below
ANALYSIS OF REALIZED REVENUE
Allocation of Current Taxes
Revenue from Collections
A-7
98,178,007
$
Add: Reserve for Uncollected Taxes
A-3
1,465,516
A-1
99,643,523
Less:
Allocated to School Taxes
A-1, A-19
15,418,637
Allocated to County Taxes
A-1, A-20
16,413,178
Amount for Support of Municipal Budget
Above
67,811,708
$
Receipts from Delinquent Taxes
Delinquent Tax Collections
A-1, A-7
74,121
Miscellaneous Revenues Anticipated
A-10
43,134,263
Public and Private Revenues
A-25
720,711
Revenues Appropriated 40A:4-87
A-25
1,414,000
A-1
45,268,974
ANALYSIS OF NON-BUDGET REVENUE
Miscellaneous Refunds
25,397
$
31st Street Parking Lot
5,490
Election Fees
1,240
Restitution
100
Police Administrative Fees
13,242
State Aid - Local Enforcement Agency Rebates
93,303
Motor Vehicle Inspection Fines
2,127
Copy of Reports
15,419
Fire Reports
30,920
Senior Citizens' and Veterans' Deduction Administration Fee
1,508
Non-budgeted PILOTS
15,490
Other Miscellaneous Receipts
192,526
Above, A-1
396,762
Above
113,551,565
$
1/6
See Accompanying Notes to the Financial Statements.
EXHIBIT A-3
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
STATEMENT OF EXPENDITURES
Total for
SFY 2014 as
Modified
Expended SFY 2014
by all
Paid or
Expenditures
Ref.
SFY 2014
Transfers
Charged
Cancelled
Reserved
Operations within "CAPS"
DEPARTMENT OF PUBLIC AFFAIRS
Director's Office
Salaries and Wages
100,500
$
97,500
$
96,872
$
-
$
628
$
Other Expenses
4,000
4,000
3,348
-
652
Municipal Court
Salaries and Wages
1,320,000
1,274,048
1,269,464
-
4,584
Other Expenses
210,000
210,000
209,885
-
115
Public Defender
Salaries and Wages
50,000
50,000
49,950
-
50
Senior Citizens
Salaries and Wages
101,800
101,800
101,293
-
507
Other Expenses
40,000
40,000
29,016
-
10,984
Hispanic/Cultural Affairs
Other Expenses
93,000
103,225
103,220
-
5
North Hudson Council of Mayors
Other Expenses
70,000
60,000
51,159
-
8,841
Municipal Land Use Law (NJS 40:55D-1)
Regional Planning Board
Salaries and Wages
19,600
18,100
17,500
-
600
Other Expenses
20,000
20,000
19,616
-
384
Continuous Planning Program
29,000
29,000
27,755
-
1,245
Veterans Affairs
Salaries and Wages
8,200
3,200
1,346
-
1,854
Other Expenses
500
500
-
-
500
Celebration of Public Events
Other Expenses
66,000
66,000
65,913
-
87
Total Department of Public Affairs
2,132,600
2,077,373
2,046,337
-
31,036
Detail:
Salaries and Wages
1,600,100
1,544,648
1,536,425
-
8,223
Other Expenses
532,500
532,725
509,912
-
22,813
DEPARTMENT OF REVENUE AND FINANCE
Director's Office
Salaries and Wages
133,700
133,700
133,700
-
-
Other Expenses
5,000
5,000
4,973
-
27
City Clerk's Office
Salaries and Wages
529,000
445,000
442,863
-
2,137
Other Expenses
80,000
80,000
68,017
-
11,983
Treasurer's Office
Salaries and Wages
500,000
445,000
443,602
-
1,398
Other Expenses
550,000
635,000
621,110
-
13,890
Assessment of Taxes
Salaries and Wages
199,000
195,000
193,610
-
1,390
Other Expenses
80,000
80,000
76,665
-
3,335
Collection of Taxes
Salaries and Wages
291,000
313,557
313,557
-
-
Other Expenses
44,000
44,000
20,326
-
23,674
Central Purchasing
Salaries and Wages
174,000
165,000
159,162
-
5,838
Other Expenses
8,000
8,000
7,787
-
213
Rent Control Board
Salaries and Wages
342,400
330,400
329,902
-
498
Other Expenses
54,000
54,000
42,519
-
11,481
Insurance
General Liability
1,825,000
1,955,000
1,906,537
-
48,463
Workers Compensation
1,425,000
1,425,000
1,420,046
-
4,954
Employee Group Health
17,343,503
17,017,073
16,706,741
-
310,332
Tax Searches
Salaries and Wages
5,300
5,300
5,000
-
300
Other Expenses
5,100
100
-
-
100
Elections
Salaries and Wages
10,000
29,065
12,648
-
16,417
Other Expenses
95,000
117,000
116,723
-
277
2/6
See Accompanying Notes to the Financial Statements.
EXHIBIT A-3
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
STATEMENT OF EXPENDITURES
Total for
SFY 2014 as
Modified
Expended SFY 2014
by all
Paid or
Expenditures
Ref.
SFY 2014
Transfers
Charged
Cancelled
Reserved
DEPARTMENT OF REVENUE AND FINANCE
(Continued)
Membership NJ League of Municipalities
Other Expenses
4,000
$
4,000
$
3,886
$
-
$
114
$
Annual Audit
Other Expenses
70,000
70,000
-
-
70,000
Tax Sale Costs
Other Expenses
15,000
15,000
15,000
-
-
Postage-All Departments
Other Expenses
200,000
203,900
199,862
-
4,038
Data Processing
Other Expenses
50,000
50,000
49,263
-
737
Day Care Center
Other Expenses
260,000
260,000
260,000
-
-
CDA Operations
Salaries and Wages
250,000
378,761
378,760
-
1
Total Department of Revenue and Finance
24,548,003
24,463,856
23,932,259
-
531,597
Detail:
Salaries and Wages
2,434,400
2,440,783
2,412,804
-
27,979
Other Expenses
22,113,603
22,023,073
21,519,455
-
503,618
DEPARTMENT OF PUBLIC SAFETY
Director's Office
Salaries and Wages
136,000
126,000
123,644
-
2,356
Other Expenses
25,000
35,000
33,793
-
1,207
Weddings
Salaries and Wages
28,000
35,000
34,650
-
350
Legal Department
Salaries and Wages
11,000
11,000
10,000
-
1,000
Other Expenses
1,200,000
1,207,000
1,186,442
-
20,558
Police Department
Salaries and Wages
17,540,320
17,284,630
17,284,629
-
1
Overtime
912,722
780,765
780,765
-
-
Other Expenses
500,000
471,426
471,426
-
-
Traffic Signs and Safety
Other Expenses
121,000
121,000
120,670
-
330
Emergency Management Services
Salaries and Wages
31,500
26,683
26,682
-
1
Other Expenses
5,000
5,000
4,985
-
15
Emergency Medical Services
Salaries and Wages
1,095,500
1,176,298
1,176,297
-
1
Other Expenses
60,000
88,900
78,442
-
10,458
Life Hazard Use Fee-Uniform Fire Safety
Salaries and Wages
162,000
155,000
153,583
-
1,417
Other Expenses
12,000
12,000
9,101
-
2,899
Contribution to Union City Redevelopment Agency
75,000
75,000
73,188
-
1,812
Board of Health
Salaries and Wages
282,500
289,900
289,090
-
810
Other Expenses
130,000
110,000
105,744
-
4,256
Divisions of Inspections
Other Expenses
12,000
4,000
28
-
3,972
Welfare
Relocation Assistance
50,000
50,000
47,276
-
2,724
School Crossing Guards
Salaries and Wages
941,046
964,720
956,267
-
8,453
Other Expenses
10,925
12,942
12,915
-
27
Total Department of Public Safety
23,341,513
23,042,264
22,979,617
-
62,647
Detail:
Salaries and Wages
21,140,588
20,849,996
20,835,607
-
14,389
Other Expenses
2,200,925
2,192,268
2,144,010
-
48,258
3/6
See Accompanying Notes to the Financial Statements.
EXHIBIT A-3
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
STATEMENT OF EXPENDITURES
Total for
SFY 2014 as
Modified
Expended SFY 2014
by all
Paid or
Expenditures
Ref.
SFY 2014
Transfers
Charged
Cancelled
Reserved
DEPARTMENT OF PUBLIC WORKS
Director's Office
Salaries and Wages
123,000
$
107,000
$
105,699
$
-
$
1,301
$
Other Expenses
3,000
3,000
2,979
-
21
Street Cleaning
Salaries and Wages
2,621,600
2,787,230
2,787,230
-
-
Other Expenses
175,000
255,000
254,705
-
295
Streets Repairs and Maintenance
Other Expenses
95,000
95,000
91,418
-
3,582
Snow Removal
Salaries and Wages
146,000
146,000
134,493
-
11,507
Other Expenses
287,470
287,470
271,022
-
16,448
Board of Adjustment
Salaries and Wages
20,000
20,866
20,866
-
-
Other Expenses
88,000
88,000
48,549
-
39,451
Solid Waste Disposal
Salaries and Wages
1,269,100
1,341,038
1,341,038
-
-
Other Expenses
3,698,900
3,698,900
3,461,347
-
237,553
Recycling Program
Other Expenses
45,000
45,000
13,999
-
31,001
Public Assistance
Other Expenses
75,000
75,000
72,153
-
2,847
Engineering Services
Other Expenses
300,000
300,000
282,070
-
17,930
Interlocal Municipal Service Agreements
Central Maintenance Facility Lease
100,000
100,000
20,437
79,563
-
Total Department of Public Works
9,047,070
9,349,504
8,908,005
79,563
361,936
Detail:
Salaries and Wages
4,179,700
4,402,134
4,389,326
-
12,808
Other Expenses
4,867,370
4,947,370
4,518,679
79,563
349,128
DEPARTMENT OF PARKS AND PUBLIC PROPERTY
Director's Office
Salaries and Wages
150,500
150,500
150,476
-
24
Other Expenses
4,000
4,000
2,936
-
1,064
Parks and Playgrounds
Salaries and Wages
310,290
280,290
271,090
-
9,200
Other Expenses
242,000
247,053
245,633
-
1,420
Public Buildings and Grounds
Salaries and Wages
880,000
928,633
928,633
-
-
Other Expenses
465,000
465,000
464,905
-
95
Recreation
Salaries and Wages
445,000
440,000
340,240
-
99,760
Other Expenses
300,000
320,000
319,677
-
323
Interlocal Municipal Service Agreements
47th Street Pool
136,000
136,000
95,991
-
40,009
Recreation Center Lease
300,000
300,000
300,000
-
-
Total Department of Parks and Public Property
3,232,790
3,271,476
3,119,581
-
151,895
Detail:
Salaries and Wages
1,785,790
1,799,423
1,690,439
-
108,984
Other Expenses
1,447,000
1,472,053
1,429,142
-
42,911
UNIFORM CONSTRUCTION CODE
State Uniform Construction Code Officials:
Salaries and Wages
807,500
707,500
676,050
-
31,450
Other Expenses
45,000
145,000
138,511
-
6,489
Sub-Code Officials:
Plumbing Inspector
Salaries and Wages
15,000
15,000
-
-
15,000
Other Expenses
1,500
1,500
-
-
1,500
Electrical Inspector
Salaries and Wages
38,000
38,000
33,173
-
4,827
Other Expenses
1,500
1,500
1,500
-
-
4/6
See Accompanying Notes to the Financial Statements.
EXHIBIT A-3
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
STATEMENT OF EXPENDITURES
Total for
SFY 2014 as
Modified
Expended SFY 2014
by all
Paid or
Expenditures
Ref.
SFY 2014
Transfers
Charged
Cancelled
Reserved
UNIFORM CONSTRUCTION CODE
(Continued)
Elevator Inspector
Other Expenses
55,000
$
55,000
$
43,264
$
-
$
11,736
$
Fire Inspector
Salaries and Wages
35,000
35,000
29,585
-
5,415
Other Expenses
1,500
1,500
1,500
-
-
Total Uniform Construction Code
1,000,000
1,000,000
923,583
-
76,417
Detail:
Salaries and Wages
895,500
795,500
738,808
-
56,692
Other Expenses
104,500
204,500
184,775
-
19,725
UNCLASSIFIED
Retirement Benefits
200,000
200,000
171,449
-
28,551
Gasoline
425,000
425,000
393,191
-
31,809
Telephone
220,000
220,000
219,462
-
538
Electricity
950,000
726,000
698,654
-
27,346
Water
60,000
96,000
76,645
-
19,355
Natural Gas
300,000
292,000
241,367
-
50,633
Street Lighting
1,000,000
870,000
867,109
-
2,891
Sewer
65,000
65,000
58,310
-
6,690
Fire Hydrants
289,200
269,200
258,390
-
10,810
Printing-All Departments
270,000
405,000
386,653
-
18,347
Photocopying
45,000
45,000
40,307
-
4,693
Fleet Maintenance & Repairs
550,000
550,000
542,046
-
7,954
Total Unclassified
4,374,200
4,163,200
3,953,583
-
209,617
Detail:
Salaries and Wages
-
-
-
-
-
Other Expenses
4,374,200
4,163,200
3,953,583
-
209,617
TOTAL OPERATIONS WITHIN "CAPS"
67,676,176
67,367,673
65,862,965
79,563
1,425,145
Detail
Salaries and Wages
32,036,078
31,832,484
31,603,409
-
229,075
Other Expenses
35,640,098
35,535,189
34,259,556
79,563
1,196,070
DEFERRED CHARGES AND STATUTORY
EXPENDITURES - MUNICIPAL WITHIN "CAPS"
Prior Year Bills
878,440
878,440
878,439
1
-
Overexpenditures
357,480
357,480
357,480
-
-
Grant receivable write-off
252,000
252,000
252,000
-
-
Deficit in Operations
362,105
362,105
32,080
330,025
-
Statutory Expenditures - Contributions to:
Social Security System (O.A.S.I.)
1,325,000
1,484,898
1,484,898
-
-
Police and Fire Retirement System
4,460,504
4,592,686
4,592,686
-
-
Public Employees Retirement System
1,249,089
1,224,108
1,224,107
-
1
Consolidated Police and Firemen's Penison Fund
84,579
84,579
84,578
-
1
Unemployment Insurance
130,000
130,000
85,117
-
44,883
Defined Contribution Retirement Plan
5,000
46,404
46,403
-
1
Total Deferred Charges and Statutory Expenditures -
Municipal Within "CAPS"
9,104,197
9,412,700
9,037,788
330,026
44,886
Total General Appropriations for Municipal Purposes
Within "CAPS"
76,780,373
76,780,373
74,900,753
409,589
1,470,031
OTHER OPERATIONS EXCLUDED FROM "CAPS"
Employee Group Health
197,676
197,676
197,676
-
-
Declared State of Emergency Costs for Snow Removal
134,375
134,375
134,375
-
-
Maintenance of Free Public Library
1,026,426
1,026,426
948,128
-
78,298
Contribution to North Hudson Fire & Rescue Joint Meeting
17,800,000
17,800,000
17,531,530
-
268,470
Total Other Operations Excluded from "CAPS"
19,158,477
19,158,477
18,811,709
-
346,768
5/6
See Accompanying Notes to the Financial Statements.
EXHIBIT A-3
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
STATEMENT OF EXPENDITURES
Total for
SFY 2014 as
Modified
Expended SFY 2014
by all
Paid or
Expenditures
Ref.
SFY 2014
Transfers
Charged
Cancelled
Reserved
INTERLOCAL MUNICIPAL SERVICE AGREEMENTS
Union City Board of Education
Solid Waste Removal
360,000
$
360,000
$
360,000
$
-
$
-
$
Gasoline
40,000
40,000
40,000
-
-
Off Duty Police Officers
80,000
80,000
62,280
-
17,720
Police Services
604,569
604,569
604,569
-
-
Total Interlocal Municipal Service Agreements
1,084,569
1,084,569
1,066,849
-
17,720
PUBLIC AND PRIVATE PROGRAMS OFFSET
BY REVENUES
Summer Food Program
151,771
151,771
151,771
-
-
Reserve for Grants Unapproriated:
Clean Communities
78,878
78,878
78,878
-
-
Recycling Tonnage Grant
-
-
-
-
Drunk Driving Enforcement fund
15,748
15,748
15,748
-
-
Alcohol Education
2,216
2,216
2,216
-
-
Byrne Justice Assistance Grant
27,424
27,424
27,424
-
-
Municipal Alliance
41,466
41,466
41,466
-
-
Municipal Alliance
57,412
57,412
57,412
-
-
Click it or Ticket
4,000
4,000
4,000
-
-
Distracted Driving Crackdown
5,000
5,000
5,000
-
-
New Jersey Departmet of Transporation -
West Street Improvements (Section 3)
349,090
349,090
349,090
-
-
Resurfacing West Street (Section 3)
650,000
650,000
650,000
-
-
Summit Avenue Section 3 (Discretionary Aid)
260,000
260,000
260,000
-
-
Hudson County Open Space-
Ellsworth Park Improvements
500,000
500,000
500,000
-
-
Total Public and Private Programs Offset by Revenue
2,143,005
2,143,005
2,143,005
-
-
Total Operations Excluded from "CAPS"
22,386,051
22,386,051
22,021,563
-
364,488
Detail
Salaries and Wages
15,748
15,748
15,748
-
-
Other Expenses
22,370,303
22,370,303
22,005,815
-
364,488
CAPITAL IMPROVEMENTS EXCLUDED FROM "CAPS"
Capital Improvement Fund
300,000
300,000
300,000
-
-
41st Street Sewer and Street Repair
110,000
110,000
98,396
-
11,604
Total Capital Improvements Excluded from "CAPS"
410,000
410,000
398,396
-
11,604
MUNICIPAL DEBT SERVICE EXCLUDED FROM "CAPS"
Payment of Bond Principal
2,638,107
2,638,107
2,638,107
-
-
Payment of Bond Anticipation Notes & Capital Notes
807,000
807,000
807,000
-
-
Interest on Bonds
2,800,000
2,800,000
2,788,287
11,713
-
Interest on Notes
270,020
270,020
270,020
-
-
Hudson County Improvement Authority:
Fire Dept Assets - Principal
438,853
438,853
438,853
-
-
Fire Dept Assets - Interest
443,290
443,290
442,968
322
-
Green Trust Loan Program:
Swimming Pool Improvements
49,747
49,747
49,747
-
-
17th Street Park Improvements
4,353
4,353
4,353
-
-
44th Street Playground
9,741
9,741
9,741
-
-
Ellsworth and 23rd Street
78,674
78,674
78,674
-
-
38th Street Park
10,856
10,856
10,856
-
-
Total Municipal Debt Service Excluded from "CAPS"
7,550,641
7,550,641
7,538,606
12,035
-
DEFERRED CHARGES-MUNICIPAL-EXCLUDED FROM "CAPS"
Special Emergency Authorizations - 5 years (N.J.S. 40A:4-55)
640,000
640,000
640,000
-
-
Total Deferred Charges-Municipal-Excluded from "CAPS"
640,000
640,000
640,000
-
-
Total General Appropriations for Municipal Purposes
Excluded from "CAPS"
30,986,692
30,986,692
30,598,565
12,035
376,092
6/6
See Accompanying Notes to the Financial Statements.
EXHIBIT A-3
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
STATEMENT OF EXPENDITURES
Total for
SFY 2014 as
Modified
Expended SFY 2014
by all
Paid or
Expenditures
Ref.
SFY 2014
Transfers
Charged
Cancelled
Reserved
LOCAL DISTRICT SCHOOL PURPOSES
EXCLUDED FROM "CAPS"
Type 1 District School Debt Service
Payment of Bond Principal
2,320,000
$
2,320,000
$
2,320,000
$
-
$
-
$
Interest on Bonds
74,240
74,240
74,240
-
-
Total Local District School Purposes Excluded from "CAPS"
2,394,240
2,394,240
2,394,240
-
-
Total General Appropriations Excluded from "CAPS"
33,380,932
33,380,932
32,992,805
12,035
376,092
Subtotal General Appropriations
110,161,305
110,161,305
107,893,558
421,624
1,846,123
Reserve for Uncollected Taxes
1,465,516
1,465,516
1,465,516
-
-
TOTAL GENERAL APPROPRIATIONS
111,626,821
$
111,626,821
$
109,359,074
$
421,624
$
1,846,123
$
Ref.
A-2
A-1
Below
A-1
A
Reserve for Uncollected Taxes
A-2
1,465,516
$
Cash Disbursements
A-4
100,912,885
Capital Improvement Fund
A-11
300,000
Reserve for Prior Year Bills
A-11, A-17
21,196
Grants Appropriated
A-27
2,134,711
Grants Appropriated - City Match
A-27
8,294
Transfer to Reserve for Encumbrances
A-22
3,234,912
Deferred Charges
A-23
1,281,560
Above
109,359,074
$
TRUST FUNDS
1/2
See Accompanying Notes to the Financial Statements.
EXHIBIT B
THE CITY OF UNION CITY
TRUST FUNDS
JUNE 30, 2014 AND 2013
COMPARATIVE BALANCE SHEETS
Ref.
2014
2013
ASSETS
Dog License Fund
Cash and Cash Equivalents
B-1
12,652
$
20,215
$
Total Dog License Fund
12,652
20,215
Other Trust Fund
Cash and Cash Equivalents
B-5
6,663,334
7,826,143
Due from Property Owners
B-6
51,029
51,029
Due from General Capital Fund
B-7
18,090
18,090
Total Other Trust Fund
6,732,453
7,895,262
Community Development Agency Fund
Cash and Cash Equivalents
B-11
519
5,760
Due from HUD CDA Grant
B-12
47,237
81,211
Due from Current Fund
B-15
123,533
-
Total Community Development Agency Fund
171,289
86,971
Public Defender Trust Fund
Cash and Cash Equivalents
B-16
20,270
10,910
Due from Current fund
B-18
-
1,363
Total Public Defender Trust Fund
20,270
12,273
Total Assets
6,936,664
$
8,014,721
$
2/2
See Accompanying Notes to the Financial Statements.
EXHIBIT B
THE CITY OF UNION CITY
TRUST FUNDS
JUNE 30, 2014 AND 2013
COMPARATIVE BALANCE SHEETS
Ref.
2014
2013
LIABILITIES, RESERVES AND FUND BALANCE
Dog License Fund
Due to State of New Jersey
B-2
4,019
$
3,509
$
Reserve for Dog License Expenditures
B-3
8,461
8,243
Due to Current Fund
B-4
172
8,463
Total Dog License Fund
12,652
20,215
Other Trust Fund
Reserve for Other Trust Activities
B-8
5,638,210
6,720,570
Due to Current fund
B-9
332,228
119,065
Reserve for Encumbrances Payable
B-10
762,015
1,055,627
Total Other Trust Fund
6,732,453
7,895,262
Community Development Agency Fund
Reserve for Community Development Block Grant
B-14
171,289
-
Due to Current Fund
B-15
-
86,971
Total Community Development Agency Fund
171,289
86,971
Public Defender Trust Fund
Reserve for Public Defender Trust Expenditures
B-17
14,470
8,983
Accounts Payable
B-19
5,800
3,290
Total Public Defender Trust Fund
20,270
12,273
Total Liabilities, Reserves and Fund Balance
6,936,664
$
8,014,721
$
GENERAL CAPITAL FUND
See Accompanying Notes to the Financial Statements.
EXHIBIT C
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
JUNE 30, 2014 AND 2013
COMPARATIVE BALANCE SHEETS
2014
2013
Ref.
ASSETS
Cash and Cash Equivalents
C-2, C-3
84
$
84
$
Due from State of New Jersey - Green Acres Trust Loan
C-16
-
590,143
Due from State of New Jersey - Green Acres Trust Grant
C-17
780,000
1,370,143
Due from County of Hudson
C-18
25,000
790,000
Due from Current Fund
C-14
-
1,281,613
Deferred Charges to Future Taxation:
Funded
C-5
56,667,280
56,995,180
Unfunded
C-4
28,681,824
29,488,824
Total Assets and Deferred Charges
86,154,188
$
90,515,987
$
LIABILITIES, RESERVES AND FUND BALANCE
Capital Improvement Fund
C-6
311,763
$
11,763
$
Improvement Authorizations:
Funded
C-7
322,877
1,657,587
Unfunded
C-7
2,086,471
7,367,259
General Serial Bonds
C-8
44,151,892
46,789,999
School Serial Bonds
C-9
-
2,320,000
Capital Lease Payable - HCIA
C-10
10,879,619
6,709,059
Green Acres Loan
C-11
1,635,769
1,176,122
Bond Anticipation Notes
C-12
20,828,000
21,635,000
Encumbrances Payable
C-13
3,513,496
2,813,867
Due to Current Fund
C-14
2,388,970
-
Due to Other Trust Fund
C-20
18,090
18,090
Fund Balance
C-1
17,241
17,241
Total Liabilities, Reserves and Fund Balance
86,154,188
$
90,515,987
$
Bonds and Notes Authorized But Not Issued
C-15
7,853,824
$
7,853,824
$
See Accompanying Notes to the Financial Statements.
EXHIBIT
C-1
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
STATEMENT OF FUND BALANCE
Ref.
Balance, June 30, 2013
C
Balance, June 30, 2014
C
17,241
$
17,241
$
FIXED ASSETS
See Accompanying Notes to the Financial Statements.
EXHIBIT D
THE CITY OF UNION CITY
FIXED ASSET GROUP OF ACCOUNTS
JUNE 30, 2014 AND 2013
COMPARATIVE BALANCE SHEETS
As Restated
2014
2013
Ref.
FIXED ASSETS
Land
11,228,900
$
11,228,900
$
Buildings and Improvements
49,374,852
47,682,641
Furniture and Fixtures
69,871
69,871
Machinery, Equipment and Other
7,734,596
7,527,051
D-1
68,408,219
$
66,508,463
$
RESERVE
Reserve for Fixed Assets
D-2
68,408,219
$
66,508,463
$
(This Page Intentionally Left Blank)
NOTES TO THE FINANCIAL STATEMENTS
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. REPORTING ENTITY
The City of Union City (the “City”) is organized as a Commission under the provisions of
N.J.S.A. 40:70-1. Five members comprise the City Board of Commissioners and serve in
both administrative and legislative capacities. The Commissioners are elected at-large by
voters of the City and serve four year concurrent terms beginning the third Tuesday of May
following their election. The Mayor is elected by Board of Commissioners for a four year
term. The Mayor presides over the Board of Commissioners, but has no veto power. Each
commissioner acts as the director of one of the five major departments of the City. There is
no single chief executive.
The financial statements of the City include every board, body, officer or commission
supported and maintained wholly or in part by funds appropriated by the City, as required by
N.J.S.A. 40A:5-5. Accordingly, the financial statements of the City do not include the
operations of the Municipal Library, the not-for-profit Union City Day Care Center, the
Union City Housing Authority, the Union City Board of Education, Union City
Redevelopment Agency, and the Union City Parking Authority.
Governmental Accounting Standards Board (“GASB”) Statement 14 establishes criteria to be
used to determine which component units should be included in the financial statements of
the oversight entity. The Division requires the financial statements of the City to be reported
separately. If the provisions of GASB No. 14 had been complied with, the following
financial statements of the component units would have been discretely presented with the
financial statements of the City, the primary government:
Union City Board of Education
Union City Parking Authority
Union City Public Library
Union City Redevelopment Agency
Union City Housing Authority
Audit reports of the component units are available at each of the respective component units.
If the report were prepared in conformity with accounting principles generally accepted in
the United States of America, these component units would be indicated in the City’s
financial statements.
5
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. DESCRIPTION OF FUNDS
The Governmental Accounting Standards Board (GASB) is the accepted standard-setting
body for establishing governmental accounting and financial reporting principles. GASB
codification establishes three fund types and two account groups to be used by general
purpose governmental units when reporting financial position and results of operations in
accordance with accounting principles generally accepted in the United States of America
(GAAP).
The accounting policies of the City 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
City 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 City accounts for its financial transactions through the following
individual funds and account groups:
Current Fund - resources and expenditures for governmental operations of a general nature,
including federal and state grant funds.
Trust Fund - receipts, custodianship and disbursements of funds in accordance with the
purpose for which each reserve was created.
General Capital Fund - receipts and disbursements of funds for the acquisition of general
capital facilities, other than those acquired in the Current Fund. Bonds, notes and loans
payable are recorded in this fund, offset by deferred charges to future taxation.
General Fixed Assets - used to account for fixed assets required in general governmental
operations.
6
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. BASIS OF ACCOUNTING
Budgets and Budgetary Accounting - An annual budget is required to be adopted and
integrated into the accounting system to provide budgetary control over revenues and
expenditures. Budget amounts presented in the accompanying financial statements represent
amounts adopted by the City and approved by the State Division of Local Government
Services, in accordance with N.J.S.A. 40A:4 et seq. Budgets are adopted on the same basis
of accounting utilized for the preparation of the City’s financial statements.
The accounting principles and practices prescribed for municipalities by the State of New
Jersey differ in certain respects from GAAP applicable to local government units. The more
significant differences are as follows:
Grant Revenues - Federal and State grants, entitlements or shared revenues received for
purposes normally financed through the current fund are recognized when anticipated in the
City budget. GAAP requires such revenues to be recognized in the accounting period when
they become susceptible to accrual.
Property Taxes and Other Revenues - property taxes and other revenues are recognized on a
cash basis. Receivables for property taxes and other items that are susceptible to accrual are
recorded with offsetting reserves on the balance sheet of the City’s current fund. GAAP
requires such revenue to be recognized in the accounting period in which they become
available and measurable, reduced by an allowance for doubtful accounts.
Reserve for Uncollected Taxes - the minimum amount of which is determined on the
percentage of collections experienced in the immediate preceding year, is required to provide
assurance that cash collected in the current year will provide sufficient cash flow to meet
expected obligations. A Reserve for Uncollected Taxes is not established under GAAP.
Expenditures - unexpended or uncommitted appropriations, at June 30, are reported as
expenditures through the establishment of appropriation reserves unless canceled by the
governing body. GAAP requires expenditures in the current fund, to be recognized in the
accounting period in which the fund liability is incurred, if measurable, except for unmatured
interest on general long-term debt, which should be recognized when due.
Encumbrances - contractual orders at June 30th are reported as expenditures through the
establishment of a reserve for encumbrances. Encumbrances do not constitute expenditures
or liabilities under GAAP.
7
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. BASIS OF ACCOUNTING (Continued)
Appropriation Reserves - are available until lapsed at the close of the succeeding year, to
meet specific claims, commitments or contracts incurred during the preceding year. Lapsed
appropriation reserves are recorded as additions to income. Appropriation reserves are not
established under GAAP.
Compensated Absences - expenditures relating to obligations for unused vested accumulated
vacation and sick-pay are not recorded until paid. GAAP requires that the amount that would
normally be liquidated with expendable available financial resources be recorded as an
expenditure in the operating funds and the remaining obligations be recorded as a long-term
obligation.
Property Acquired for Taxes - is recorded in the current fund at the assessed valuation when
such property was acquired and fully reserved. GAAP requires such property to be recorded
in the general fixed assets account group at market value on the date of acquisition.
Sale of Municipal Assets - the proceeds of the sale of municipal assets can be held until
made available through a future budget appropriation. GAAP requires such proceeds to be
recorded as revenue in the year of sale.
Interfunds - advances from the current fund are reported as interfund receivable with
offsetting reserves which are created by charges to operations. Income is recognized in the
year the receivables are liquidated. Interfund receivables in the other funds are not offset by
reserves. Under GAAP, interfund receivables are not recorded through operations.
General Fixed Assets - N.J.A.C. 5:30-5.6 codifies Technical Accounting Directive No. 86-2,
Accounting for Governmental Fixed Assets, as promulgated by the Division of Local
Government Services, which differs in certain respects from GAAP, requires the inclusion of
a statement of general fixed assets of the City as part of its basic financial statements. It also
requires the City to place a value on all fixed assets put into service, to maintain a subsidiary
ledger of detailed records of fixed assets and to provide property management standards to
control fixed assets. General fixed assets are defined as non-expendable personal property
having a physical existence, a useful life of more than five years and an acquisition cost of
$5,000 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 capitalized.
8
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. BASIS OF ACCOUNTING (Continued)
General Fixed Assets (Continued) - General Fixed Assets that have been acquired and are
utilized in a governmental fund operation are accounted for in a separate General Fixed
Assets Fund rather than in a governmental fund. No depreciation has been provided on
general fixed assets or reported in the financial statements (Exhibit D). 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 costs of inventories are 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.
Use of Estimates - the preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect certain reports, amounts and
disclosures. Accordingly, actual results could differ from those estimates.
Subsequent Events - Management has reviewed and evaluated all events and transactions that
occurred between June 30, 2014 through April 8, 2015, the date that the financial statements
were issued for possible disclosure and recognition in the financial statements, and no items,
other than those already included in Note 11, contingent liabilities, have come to the attention
of the City that would require disclosure.
NOTE 2. CASH AND CASH EQUIVALENTS AND INVESTMENTS
A. DEPOSITS
All bank deposits and investments as of the balance sheet date are classified as to credit risk.
Deposits are exposed to custodial credit risk if they are not covered by depository insurance
and the deposits are:
(a) Uncollateralized.
(b) Collateralized with securities held by the pledging financial institution.
(c) Collateralized with securities held by the pledging financial institution’s trust department
or agent but not in the City’s name.
9
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 2. CASH AND CASH EQUIVALENTS AND INVESTMENTS (Continued)
B. DEPOSITS (Continued)
All bank deposits as of the balance sheet date are entirely insured or collateralized by a
collateral pool maintained by public depositories as required by the Governmental Unit
Deposit Protection Act (“GUDPA”) or are on deposit with the New Jersey Cash Management
Fund or the New Jersey Asset & Rebate Management Program (“NJARM”).
Custodial credit risk is the risk that, in the event of a bank failure, the City’s deposits may not
be returned to it. The City does not have a deposit policy for custodial credit risk. As of
June 30, 2014 and 2013, none of the City’s bank balances of $18,322,032 and $27,141,263,
respectively, was exposed to custodial credit risk.
As of June 30, 2014 and 2013, the City’s deposits and investments are summarized as
follows:
2014
2013
Insured - FDIC
839,847
$
854,007
$
Insured - GUDPA
16,157,828
24,963,307
NJARM
867,429
867,280
NJ Cash Management Fund
456,928
456,669
Total
18,322,032
$
27,141,263
$
C. INVESTMENTS
New Jersey statutes permit the City to purchase the following types of securities:
• Bonds or other obligations of the United States of America or obligations guaranteed by the
United States of America.
• Government money market mutual funds.
• Any obligation that a federal agency or a federal instrumentality has issued in accordance
with an act of Congress, which security has a maturity date not greater than 397 days from
the date of purchase, provided that such obligation bears a fixed rate of interest not
dependent on any index or other external factor
• 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.
• Bonds or other obligations having a maturity date not more than 397 days from the date of
purchase, approved by the Division of Investment of the Department of the Treasury for
investment by local units.
10
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 2. CASH AND CASH EQUIVALENTS AND INVESTMENTS (Continued)
C. INVESTMENTS (Continued)
New Jersey statutes permit the City to purchase the following types of securities (Continued):
• Local government investment pools.
• Deposits with the State of New Jersey Cash Management Fund established pursuant to
section 1 of P.L. 1977, c. 281 (C.52:18A-90.4).
• Agreements for the repurchase of fully collateralized securities if (a) the underlying
securities are permitted investments pursuant to the first and third bullets on the preceding
page, (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.17:9-41) and (e) a master
repurchase agreement providing for the custody and security of collateral is executed.
As of June 30, 2014 and 2013, the City’s investments are recorded in the financial statements
and have been recorded at the carrying amount. The difference between the carrying amount
and market value is not material to the financial statements.
Interest Rate Risk
The City does not have a formal investment policy that limits investment maturities as a
means of managing its exposure to fair value losses arising from increasing interest rates.
Concentration of Credit Risk
The City places no limit on the amount the City may invest in any one issuer. The City only
deposits funds in money market funds, the NJ Cash Management Fund, or the NJARM
Program.
Custodial credit risk is the risk that, in the event of the failure of the counterparty, the City
will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. Investment securities are exposed to custodial credit risk if
they are uninsured, are not registered in the City’s name, and are held by either:
a. The counterparty or
b. The counterparty’s trust department or agent but not in the City’s name
Foreign currency risk is the risk that changes in exchange rates will adversely affect
investments. The City does not have investments denominated in foreign currency.
At June 30, 2014 the City’s investments were not exposed to custodial credit risk or foreign
currency risk.
11
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 2. CASH AND CASH EQUIVALENTS AND INVESTMENTS (Continued)
C. INVESTMENTS (Continued)
GASB Statement No. 40 requires that the City disclose the credit rating of all debt security
investments except for obligations of the U.S. government or investments guaranteed by the
U.S. government. The City is exempt from this requirement because all its investments at
June 30, 2014 are invested in money market funds, the NJ Cash Management Fund, or the
NJARM Program.
New Jersey Cash Management Fund and NJARM Program
All investments in the New Jersey Cash Management Fund are governed by the regulations
of the Investment Council, which prescribe specific standards designed to insure the quality
of investments and to minimize the risks related to investments. In all the years of the
Division of Investment’s existence, the Division has never suffered a default of principal or
interest on any short-term security held by it due to the bankruptcy of a securities issuer;
nevertheless, the possibility always exists, and for this reason a reserve is being accumulated
as additional protection for the Other-than-State participants. In addition to the Council
regulations, the Division sets further standards for specific investments and monitors the
credit of all eligible securities issuers on a regular basis. The City does not own specific
identifiable securities, but instead has a net realizable interest in the joint value of the fund.
As of June 30, 2014 and 2013, the City had a balance of $456,928 and $456,669,
respectively, in the New Jersey Cash Management Fund.
The NJARM Program is a financial services organization created and run exclusively for
New Jersey municipalities, authorities, schools and other local and regional governmental
type entities. The Program was designed to help achieve excellence in the governmental
unit’s investment program. Created as a joint trust investment under the Interlocal Services
Ace, NJARM provides participants with investment and arbitrage rebate compliance services
for both bond proceeds and general operating funds. The program is a means for local
governments in the State to invest collectively the proceeds of taxable and tax-exempt
borrowings and other funds on hand. As of June 30, 2014 and 2013, the City has a balance
of $867,429 and $867,280, respectively, in the NJARM Program.
NOTE 3. TAXES RECEIVABLE, TAX TITLE LIENS
In accordance with the accounting principles prescribed by the State of New Jersey, taxes
receivable and tax title liens are realized as revenue when collected. Since delinquent taxes and
liens are fully reserved, no provision has been made to estimate that portion of the taxes
receivable and tax title liens that are uncollectible.
12
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 3. TAXES RECEIVABLE, TAX TITLE LIENS (Continued)
During fiscal year ended June 30, 2014 the City collected $268,190 from delinquent taxes which
represented 44.26% of the delinquent balances at June 30, 2013. For the fiscal year ended June
30, 2013, the City collected $182,550 from delinquent taxes which represented 59.65% of the
delinquent balances at June 30, 2012.
NOTE 4. PROPERTY TAX CALENDAR
Property tax revenues are collected in quarterly installments due August 1, November 1,
February 1, and May 1. Property taxes unpaid on October 1 of the fiscal year following their
final due date are subject to tax sale in accordance with the statutes. The amount of tax levied
includes not only the amount required in support of the City’s annual budget, but also the
amounts required in support of the budget of the entities that follow. Receivables for property
taxes are recorded with offsetting reserves on the balance sheet of the City’s Current Fund;
accordingly, such amounts are not recorded as revenue until collected. GAAP requires such
revenue to be recognized when they are available and measurable, reduced by an allowance for
doubtful accounts.
School Taxes
The City is responsible for levying, collecting and remitting school taxes for the Union City
Board of Education. Operations are charged for the full amount required to be raised from
taxation to operate the local school district for the period from July 1 to June 30.
County Taxes
The City is responsible for levying, collecting and remitting county taxes for the County of
Hudson. Operations is charged for the amount due the County for the year, based upon the
ratables required to be certified to the County Board of Taxation by January 10 of the current
year. In addition, Operations is charged for the County share of Added and Omitted Taxes
certified to the County Board of Taxation by October 10 of the current year and due to be paid to
the County by February 15 of the following year.
Prepaid Taxes
Taxes collected in advance are recorded as cash liabilities in the financial statements. As of June
30, 2014 and 2013, the City’s prepaid taxes were $93,263 and $115,806, respectively.
13
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 5. SCHOOL DISTRICT
At June 30, 2014 and 2013, the amount of authorized and unissued school indebtedness was $0
each year.
NOTE 6. LONG-TERM DEBT
A. SUMMARY OF MUNICIPAL DEBT
The Local Bond Law, N.J.S.A. 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 City are general obligation bonds,
backed by the full faith and credit of the City. Bond Anticipation Notes, which are issued to
temporarily finance capital projects, shall mature and be paid off within ten years of original
date financed by the issuance of bonds.
The following is a summary of changes in long-term debt for the year ended June 30, 2014:
Bonds and Notes
Balance
Issued/
Balance
June 30, 2013
Authorized
(Unissued)
Paid
June 30, 2014
General Bonds and Notes
68,424,999
$
-
$
20,828,000
$
24,273,107
$
64,979,892
$
Bonds Issued by Another
Public Body and Guaranteed
by Municipalities
1,793,700
-
-
1,793,700
Green Acres Loans
1,176,122
-
590,143
130,496
1,635,769
HCIA Capital Leases
6,709,059
-
4,609,412
438,852
10,879,619
Authorized but Not Issued
7,853,824
-
-
7,853,824
Total General Debt
85,957,704
-
26,027,555
24,842,455
87,142,804
School Serial Bonds
2,320,000
-
-
2,320,000
-
Total
88,277,704
$
-
$
26,027,555
$
27,162,455
$
87,142,804
$
The repayment schedule of annual debt service principal and interest for the next five years,
and five-year increments there-after, for bonded debt issued and outstanding as of June 30,
2014 is as follows:
14
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 6. LONG-TERM DEBT (Continued)
A. SUMMARY OF MUNICIPAL DEBT (Continued)
Fiscal
General Bonds
HCIA Lease
Green Acres Trust Fund Loans
Year Ending
Principal
Interest
Principal
Interest
Principal
Interest
Total
2015
2,582,108
$
2,857,842
$
453,888
$
414,570
$
145,565
$
26,151
$
6,480,124
$
2016
2,521,251
2,922,956
480,577
383,604
161,064
29,003
6,498,455
2017
2,455,108
2,940,130
518,940
349,766
154,513
25,813
6,444,270
2018
2,088,425
3,299,569
562,303
313,895
78,550
23,101
6,365,843
2019
3,760,000
1,645,907
590,664
275,498
69,218
21,577
6,362,864
2020-2024
21,610,000
5,326,079
3,653,833
689,948
367,537
86,449
31,733,846
2025-2029
3,540,000
2,490,313
405,985
47,996
6,484,295
2030-2034
5,595,000
933,125
-
-
253,337
11,297
6,792,759
B. SUMMARY OF STATUTORY DEBT CONDITION - ANNUAL DEBT STATEMENT
This summarized statement of debt condition which is prepared in accordance with the
required method of setting up the Annual Debt Statement and indicates a statutory net debt of
2.05%. The Equalized Valuation Basis of the City at June 30, 2014 is $3,109,786,455.
Gross
Debt
Deductions
Net Debt
General Debt
76,263,185
$
12,575,000
$
63,688,185
$
C. BORROWING POWER UNDER N.J.S.A. 40A:2-6 AS AMENDED
3-1/2% of Equlaized Valuation Basis
108,842,526
$
Net Debt
63,688,185
Remaining Borrowing Power
45,154,341
$
15
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 6. LONG-TERM DEBT (Continued)
D. GENERAL SERIAL BONDS PAYABLE
The city issues bonds to fund various capital projects. Bonds Payable consists of the
following:
ERI
2007
Pension
Refunding
Fiscal
Total
Bonds
Issue
Year Ending
Payments
Principal
Principal
2015
2,582,108
$
665,000
$
1,917,108
$
2016
2,521,251
725,000
1,796,251
2017
2,455,109
825,000
1,630,109
2018
2,088,425
15,000
2,073,425
2019
3,760,000
30,000
3,730,000
2020
3,945,000
100,000
3,845,000
2021
4,150,000
165,000
3,985,000
2022
4,350,000
225,000
4,125,000
2023
4,540,000
315,000
4,225,000
2024
4,625,000
375,000
4,250,000
2025
475,000
475,000
-
2026
575,000
575,000
-
2027
690,000
690,000
-
2028
825,000
825,000
-
2029
975,000
975,000
-
2030
1,125,000
1,125,000
-
2031
1,300,000
1,300,000
-
2032
1,475,000
1,475,000
-
2033
1,695,000
1,695,000
-
44,151,893
$
12,575,000
$
31,576,893
$
The 2007 Refunding Issue Bonds refunded $8,690,000 of the City’s outstanding obligations
securing bonds issued by the Hudson County Improvement Authority; $15,506,000 of the
2006 General Improvement Bonds; $3,510,000 of the 1997 Refunding Issue; and $1,430,000
of the ERI Pension Bonds.
16
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 6. LONG-TERM DEBT (Continued)
E. LOANS AND CAPITAL LEASES PAYABLE
The city receives loans and capital leases in order to fund various capital projects. Loans and
Capital Leases Payable consisted of the following:
Hudson County Improvement Authority
Lease Payments
Green
Cost of Facilities
2011 A&B
N. Hudson Reg.
Acres
NHRFR
Fire Dept.
Fire & Rescue
Fiscal
Loans
Total
Series 2004
Assets
Series 2006A&B
Year Ending
Principal
Payments
Principal
Principal
Principal
2015
145,565
$
744,263
$
250,875
$
158,888
$
334,500
$
2016
161,064
791,093
267,600
165,578
357,915
2017
154,513
924,893
367,950
173,940
383,003
2018
78,550
995,138
401,400
182,303
411,435
2019
69,218
1,050,330
418,125
190,665
441,540
2020
70,610
1,125,593
451,575
200,700
473,318
2021
72,030
1,184,131
468,300
209,063
506,768
2022
73,479
1,264,410
501,750
219,097
543,563
2023
74,955
1,348,036
535,200
229,133
583,703
2024
76,462
1,451,732
585,375
240,841
625,516
2025
77,997
-
-
-
-
2026
79,566
-
-
-
-
2027
81,165
-
-
-
-
2028
82,797
-
-
-
-
2029
84,461
-
-
-
-
2030
86,158
-
-
-
-
2031
60,840
-
-
-
-
2032
34,743
-
-
-
-
2033
35,441
-
-
-
-
2034
36,155
-
-
-
-
1,635,769
$
10,879,619
$
4,248,150
$
1,970,208
$
4,661,261
$
17
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 6. LONG-TERM DEBT (Continued)
F. NOTES PAYABLE
The term of bond anticipation notes cannot exceed one year, but the notes may be renewed
from time to time for a period not exceeding one year. All such notes must be paid or
permanently financed no later than the tenth anniversary of the date of the original note. The
State of New Jersey also prescribes that on or before the third anniversary date of the original
note and through to the tenth anniversary date, a payment of an amount at least equal to the
first legally payable installment of the bonds in anticipation of which such notes were issued,
be paid or retired.
NOTE 7. FUND BALANCE APPROPRIATED
Fund balances at June 30, 2014 and 2013 which were appropriated and included as anticipated
revenue in their own respective funds for the years ending June 30, 2014 and 2013 were $0 and
$0 respectively. There was no fund balance included as anticipated revenue for the fiscal year
2015 budget.
NOTE 8. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION
A. STATE-MANAGED PENSION PLANS
Substantially all full-time City employees participate in the Public Employees Retirement
System (PERS) and the Police and Firemen’s Retirement System of NJ (PFRS). The PERS
and PFRS systems are cost-sharing multiple-employer contributory defined benefit
retirement systems sponsored and administered by the State of New Jersey, Department of
Treasury, Division of Pensions and Benefits.
The PERS was established in January 1955 under provisions of N.J.S.A. 43:15A and
provides coverage to substantially all full time employees of the City provided the employee
is not a member of another State administered retirement system. Membership is mandatory
for such employees and vesting occurs after 8 to 10 years of service
The PFRS was established in July 1944, under the provisions of N.J.S.A. 43:16A to provide
coverage to substantially all full time county and municipal police or firemen and state
firemen appointed after June 30, 1944. Membership is mandatory for such employees with
vesting occurring after 10 years of membership.
18
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 8. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (Continued)
A. STATE-MANAGED PENSION PLANS (Continued)
The cost of living increase for PERS and PFRS are funded directly by each of the respective
systems, but are currently suspended as a result of reform legislation.
According to state law, all obligations of PERS and PFRS will be assumed by the State of
New Jersey should the PERS and PFRS be terminated. The State of New Jersey, Department
of Treasury, Division of Pensions and Benefits, issues publicly available financial reports
that include the financial statements and required supplementary information of the PERS
and PFRS. The financial reports may be accessed via the New Jersey Division of Pensions
and Benefits website at www.state.nj.us/treasury/pensions.
Significant Legislation
P.L. 2011, c. 78, effective June 28, 2011, made various changes to the manner in which
PERS and PFRS operate and to the benefit provisions of those systems.
Chapter 78’s provisions impacting employee pension and health benefits include:
•
For new members of PERS hired on or after June 28, 2011 (Tier 5 members), the years of
creditable service needed for early retirement benefits increased from 25 to 30 years and the
early retirement age from age 55 to 65 for Tier 5 members.
•
The eligible age to qualify for a service retirement in the PERS increased from age 62 to 65
for Tier 5 members.
•
The annual benefit under special retirement for new PFRS members enrolled after 28, 2011
(Tier 3 members), decreased from 65 percent of final compensation to 60 percent of final
compensation after 25 years of service and from 70 percent of final compensation to 65
percent final compensation after 30 or more years of service.
•
It increases in active member contribution rates for PERS active members from 5.5% of
annual compensation to 6.5% plus an additional 1% phased-in over 7 years; For fiscal year
2012, the member contribution rates will increase in October 2011. The phase-in of the
additional incremental member contribution rates for PERS members will take place in July
of each subsequent fiscal year.
•
The payment of automatic cost-of-living adjustment (COLA) additional increases to current
and future retirees and beneficiaries is suspended until reactivated as permitted by this law.
19
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 8. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (Continued)
A. STATE-MANAGED PENSION PLANS (Continued)
•
New employee contribution requirements towards the cost of employer-provided health
benefit coverage. Employees are required to contribute a certain percentage of the cost of
coverage. The rate of contribution is determined based on the employee’s annual salary and
the selected level of coverage. The increased employee contributions will be phased in over a
4-year period for those employed prior to Chapter 78’s effective date with a minimum
contribution required to be at least 1.5% of salary.
•
In addition, this new legislation changes the method for amortizing the pension systems’
unfunded accrued liability (from a level percent of pay method to a level dollar of pay).
Contribution Requirements – PERS
The contribution policy is set by N.J.S.A. 43:15A and requires contributions by active
members and contributing employers. Plan member and employer contributions may be
amended by State of New Jersey legislation. Members contribute at a uniform rate. The full
normal employee contribution rate became 5.5% of annual compensation, effective July 1,
2007 for most PERS state employees and effective July 1, 2008 for PERS local employees,
based on Chapter 103, P.L. 2007. The rate for members who are eligible for the Prosecutors
Part of PERS (Chapter 366, P.L. 2001) is 8.5% of base salary effective July 1, 2008.
Pursuant to the provisions of Chapter 78, P.L. 2011, the active member contribution rate
increased from 5.5% of annual compensation to 6.5% plus an additional 1% phased-in over 7
years beginning in fiscal year 2013. The rate for members who are eligible for the
Prosecutors Part of PERS (Chapter 366, P.L. 2001) increased from 8.5% of base salary to
10%. For fiscal year 2012, the member contribution rate increased in October 2011. The
phase-in of the additional incremental member contribution rate will take place in July of
each subsequent fiscal year. Employers’ contribution amounts are based on an actuarially
determined rate. The annual employer contributions include funding for basic retirement
allowances, cost-of-living adjustments, and non-contributory death benefits.
Chapter 19, P.L. 2009, effective March 17, 2009, provided an option for local employers to
contribute 50% of the normal and accrued liability contribution amounts certified by PERS
for payments due in State fiscal year 2009. This law also provided that a local employer may
pay 100% of the required contribution. Such an employer will be credited with the full
payment and any such amounts will not be included in their unfunded liability. The actuaries
for PERS will determine the unfunded liability of those retirement systems, by employer, for
the reduced normal and accrued liability contributions provided under this law. This
unfunded liability will be paid by the employer in level annual payments over a period of 15
years beginning with the payments due in the State fiscal year ending June 30, 2012 and will
be adjusted by the rate of return on the actuarial value of assets.
20
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 8. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (Continued)
A. STATE-MANAGED PENSION PLANS (Continued)
Contribution Requirements – PERS (Continued)
The City and employees’ contributions to PERS normal pension, non-contributory group life
insurance (NCGI) and early retirement incentive (ERI) for the past three years were as
follows:
Three-Year Trend Information
Public Employees Retirement System (PERS)
City Contribution
Pension
Non-
Early
Year Ended
Percentage of
Contributory
Retirement
Employee
June 30,
Amount
Covered Payroll
Deferral
Life Insurane
Incentive
Contributions
2014
1,249,089
$
13.20%
62,831
$
17,503
$
139,545
$
646,434
$
2013
1,145,652
9.95%
61,009
68,186
139,768
638,848
2012
1,288,235
11.70%
60,226
82,076
140,973
611,053
Contribution Requirements – PFRS
The contribution policy is set by N.J.S.A. 43:16A and requires contributions by active
members and contributing employers. Plan member and employer contributions may be
amended by State of New Jersey legislation. Employers’ contribution amounts are based on
an actuarially determined rate. The annual employer contributions include funding for basic
retirement allowances, cost-of-living adjustments, and non-contributory death benefits.
Members contribute at a uniform rate of 8.5% of base salary. Pursuant to the provisions of
Chapter 78, P.L. 2011, the active member contribution rate increased from 8.5% to 10% in
October 2011.
Chapter 19, P.L. 2009, effective March 17, 2009, provided an option for local employers to
contribute 50% of the normal and accrued liability contribution amounts certified by PFRS
for payments due in State fiscal year 2009. This law also provided that a local employer may
pay 100% of the required contribution. Such an employer will be credited with the full
payment and any such amounts will not be included in their unfunded liability. The actuaries
for PFRS will determine the unfunded liability of those retirement systems, by employer, for
the reduced normal and accrued liability contributions provided under this law. This
unfunded liability will be paid by the employer in level annual payments over a period of 15
years beginning with the payments due in the State fiscal year ending June 30, 2012 and will
be adjusted by the rate of return on the actuarial value of assets.
21
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 8. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (Continued)
A. STATE-MANAGED PENSION PLANS (Continued)
Contribution Requirements – PFRS (Continued)
The City and employees’ contributions to PFRS normal pension, NCGI and ERI for the past
three years were as follows:
Three-Year Trend Information
Police and Firemen's Retirement System (PFRS)
City Contribution
Pension
Non-
Early
Year Ended
Percentage of
Contributory
Retirement
Employee
June 30,
Amount
Covered Payroll
Deferral
Life Insurane
Incentive
Contributions
2014
4,592,686
$
29.03%
285,489
$
152,303
$
31,994
$
1,644,713
$
2013
4,159,235
23.00%
278,086
171,772
30,789
1,537,230
2012
3,863,384
20.77%
276,072
141,510
29,118
1,584,591
Vesting and Benefit Provisions – PERS
The vesting and benefit provisions are set by N.J.S.A. 43:15A and 43:3B. The PERS
provides retirement, death and disability benefits. All benefits vest after eight to ten years of
service, except for medical benefits, which vest after 25 years of service or under the
disability provisions of the PERS.
For Tier 1 members, retirement benefits for age and service are available at age 60 and are
generally determined to be 1/55 of final average salary for each year of service credit, as
defined. Final average salary equals the average salary for the final three years of service
prior to retirement (or highest three years’ compensation if other than the final three years).
Members may seek early retirement after achieving 25 years of service credit, as defined, or
they may elect deferred retirement after achieving eight to ten years of service credit, in
which case benefits would begin the first day of the month after the member attains normal
retirement age.
Members are always fully vested for their own contributions and, after three years of service
credit, become vested for earnings on their contributions at 2% per annum. In the case of
death before retirement, members’ beneficiaries are entitled to full interest credited to the
members’ accounts.
22
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 8. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (Continued)
A. STATE-MANAGED PENSION PLANS (Continued)
Vesting and Benefit Provisions – PERS (Continued)
Eligible retirees receiving monthly benefits are entitled to cost-of-living adjustment (COLA)
increases equal to 60% of the change in the average consumer price index for the calendar
year in which the pensioner retired, as compared to the average consumer price index for a
12-month period ending with each August 31st immediately preceding the year in which the
adjustment becomes payable. The regular retirement allowance is multiplied by the 60%
factor as developed and results in the dollar amount of the adjustment payable. Retired
members become eligible for pension adjustment benefits after 24 months of retirement. The
COLA increases are funded by the retirement system and are included in the annual actuarial
calculations of the required state and state-related employer contributions. Pursuant to the
provisions of Chapter 78, P.L. 2011, COLA increases are suspended for all current and future
retirees of all retirement systems. No further COLA increases will be granted. The law does
not reduce any COLA increases that have already been added to retiree benefits.
Chapter 103, P.L. 2007 amended the early retirement reduction formula for members hired
on or after July 1, 2007 and prior to November 2, 2008 (Tier 2 members) and retiring with 25
years of service to be reduced by 1% for every year between age 55 and 60, plus 3% for
every year under age 55. Also, this law provided that the amount of compensation for Tier 2
members used for employer and member contributions and benefits under the PERS cannot
exceed the annual maximum wage contribution base for Social Security, pursuant to the
Federal Insurance Contributions Act.
Chapter 89, P.L. 2008 increased the PERS eligibility age for unreduced benefits from age 60
to age 62 for members hired on or after November 1, 2008 and on or before May 21, 2010
(Tier 3 members). It also increased the minimum annual compensation required for
membership eligibility for new Tier 3 members from $1,500 to $7,500 in addition to
amending the early retirement reduction formula for Tier 3 members retiring with 25 years of
service to 1% for every year between age 55 and 62, plus 3% for every year under age 55.
Chapter 1, P.L. 2010, effective May 21, 2010, changed the membership eligibility criteria for
new members of PERS hired after May 21, 2010 (Tier 4 and Tier 5 members) from the
amount of annual compensation to the number of hours worked weekly. Also, it returned the
benefit multiplier for these members of PERS to 1/60 from 1/55, and it provided that the
retirement allowance for these members be calculated using the average annual
compensation for the last five years of service instead of the last three years of service. Tier 4
and Tier 5 members of PERS no longer receive pension service credit from more than one
employer. Pension service credit is earned for the highest paid position only. This law also
closed the Prosecutors Part of the PERS to new members.
23
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 8. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (Continued)
A. STATE-MANAGED PENSION PLANS (Continued)
Vesting and Benefit Provisions – PERS (Continued)
Chapter 3, P.L. 2010, effective May 21, 2010, replaced the accidental and ordinary disability
retirement for Tier 4 and Tier 5 members of the PERS with disability insurance coverage
similar to that provided by the State to individuals enrolled in the State’s Defined
Contribution Retirement Program.
Chapter 78, P.L. 2011, provides that new members of PERS hired on or after June 28, 2011
(Tier 5 members) need 30 years of creditable service and age 65 for receipt of the early
retirement benefit without a reduction of ¼ of 1% for each month that the member is under
age 65. Tier 5 members are eligible for a service retirement benefit at age 65.
Vesting and Benefit Provisions – PFRS
The vesting and benefit provisions are set by N.J.S.A. 43:16A and 43:3B. The PFRS
provides retirement as well as death and disability benefits. All benefits vest after ten years
of service, except disability benefits which vest after four years of service. Retirement
benefits for age and service are available at age 55 and are generally determined to be 2% of
final compensation for each year of creditable service, as defined, up to 30 years plus 1% for
each year of service in excess of 30 years. Final compensation equals the compensation for
the final year of service prior to retirement. Members may seek special retirement after
achieving 25 years of creditable service or they may elect deferred retirement after achieving
ten years of service, in which case benefits would begin at age 55 equal to 2% of final
compensation for each year of service. The annual benefit under special retirement is 65% of
the member’s final compensation plus 1% for each year of creditable service over 25 years
but not to exceed 30 years. The maximum allowance is therefore 70% of final compensation.
Pursuant to the provisions of Chapter 78, P.L. 2011, the annual benefit under special
retirement for members enrolled after June 28, 2011 (Tier 3 members), is 60% of the
member’s final compensation plus 1% for each year of creditable service over 25 years but
not to exceed 30 years. The maximum allowance is therefore 65% of final compensation.
Widow/widowers of members retired since December 18, 1967 receive 50% of the retiree’s
final compensation. The minimum annual widow/widower’s benefits of an accidental
disability retiree prior to December 18, 1967 and of all retirees since December 18, 1967 is
$4,500.
Members are always fully vested for their own contributions. In the case of death before
retirement, members’ beneficiaries are entitled to full payment of members’ contributions
providing no survivor death benefits are payable.
24
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 8. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (Continued)
A. STATE-MANAGED PENSION PLANS (Continued)
Vesting and Benefit Provisions – PFRS (Continued)
Eligible retirees receiving monthly benefits are entitled to cost-of-living adjustment (COLA)
increases equal to 60% of the change in the average consumer price index for the calendar
year in which the pensioner retired, as compared to the average consumer price index for a
12-month period ending with each August 31st immediately preceding the year in which the
adjustment becomes payable. The regular retirement allowance is multiplied by the 60%
factor as developed and results in the dollar amount of the adjustment payable. Retired
members become eligible for pension adjustment benefits after 24 months of retirement.
The COLA increases are funded by the retirement system and are included in the annual
actuarial calculations of the required state and state-related employer contributions.
Pursuant to the provisions of Chapter 78, P.L. 2011, COLA increases are suspended for all
current and future retirees of all retirement systems. No further COLA increases will be
granted. The law does not reduce any COLA increases that have already been added to
retiree benefits.
Pursuant to Chapter 1, P.L. 2010, for new members of PFRS hired after May 21, 2010 (Tier
2 members), this law capped the maximum compensation that can be used to calculate a
pension from these plans at the annual wage contribution base for Social Security, and
required the pension to be calculated using a three year average annual compensation
instead of the last year’s salary.
B. DEFINED CONTRIBUTION RETIREMENT PROGRAM
The Defined Contribution Retirement Program (the “DCRP”), was established July 1, 2007,
under the provisions of Chapters 92 and 103, P.L. 2007. Individuals eligible for membership
in the DCRP include local officials who are elected or appointed on or after July 1, 2007; and
employees enrolled in the PERS on or after July 1, 2007 who earn in excess established
“maximum compensation” limits.
A local elected official is any individual who holds elected public office. Officials elected on
or after July 1, 2007 will only be enrolled in DCRP. Elected officials already enrolled in
PERS prior to July 1, 2007 based on elected office will remain a PERS member while
serving that same elected office. Any break in service or election to a different elected office
will automatically enroll the elected official in DCRP. If a retired member of another State-
administered retirement system is elected to office, that elected official can choose to either
continue receiving retirement benefits from the former employment or suspend such benefits
and participate in DCRP.
25
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 8. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (Continued)
B. DEFINED CONTRIBUTION RETIREMENT PROGRAM (Continued)
A local appointed official is any individual appointed by the governor, including those
requiring advice and consent of the Senate, or an individual appointed in a similar manner by
the governing body of a local public entity. On or after July 1, 2007, a newly appointed
official who does not have an existing PERS account will only be enrolled in the DCRP.
Appointed officials already enrolled in PERS prior to July 1, 2007 will remain a PERS
member while serving that same appointed office.
An appointed official is permitted to join or remain in PERS if that appointed official holds a
professional license or certificate to perform and is serving in any of the following capacities:
Certified Health Officer, Tax Collector, Chief Financial Officer, Construction Code Official,
Qualified Purchasing Agent, Tax Assessor, Municipal Planner, Registered Municipal Clerk,
Licensed Uniform Subcode Inspector Principal/Certified Public Works Manager.
Additional minimum DCRP eligibility criteria for a newly elected or appointed official are
the same as for a PERS position. However, in the case of DCRP, eligible officials can
irrevocable waiver their participation when earning less than $5,000 annually.
Eligible PERS members are enrolled in the DCRP when annual salary exceeds the maximum
compensation limit. This may occur upon enrollment into the PERS when an annual base
salary is reported on the enrollment application that will exceed the maximum compensation;
or when a PERS member’s annual salary is increased to where it will exceed the maximum
compensation and it is reported by the employer to the Division of Pensions and benefits.
Enrolled members contribute 5.5% of the base salary to a tax-deferred investment account
established with Prudential Financial, which administers the DCRP for the Division of
Pensions and Benefits. Members enrolled due to income levels in excess of maximum
compensation limits only contribute based on that amount in excess. Member contributions
are matched by a 3% employer contribution.
Newly eligible and enrolled members that have existing DCRP accounts or are active or
vested members of another State-administered retirement system are immediately vested in
DCRP. Conversely, those officials not qualifying for immediate vesting in DCRP will
become fully vested upon commencement of their third year of membership. In such case
there is no eligible third year of membership, all employee and employer contributions will
be refunded to the appropriate contributing parties.
26
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 8. RETIREMENT SYSTEMS AND DEFERRED COMPENSATION (Continued)
B. DEFINED CONTRIBUTION RETIREMENT PROGRAM (Continued)
DCRP members may elect to receive all or a portion of the account in a lump-sum
distribution, or as a fixed term or life annuity. There is no minimum retirement age under the
DCRP. Any distributions of mandatory contributions will automatically render the member
retired. Lump-sum cash distributions to members under the age of 55 are limited to the
member’s contributions and earnings. Employer matching contributions and earnings are
only available after the age of 55. A member may begin collecting an annuity or take a cash
distribution at any time after termination of employment, but will no longer be eligible to
participate in any State-administered retirement system upon a return to public employment
in New Jersey.
DCRP members are covered by employer-paid life insurance, payable to their designated
beneficiaries, in the amount of 1½ times the annual base salary on which DCRP contributions
were based. This benefit continues for up to two years if on an approved leave of absence
without pay for personal illness. Life insurance may also be available to members upon
retirement at an amount reduced to 3/16 of the annual base salary on which DCRP
contributions were based who qualify by being 60 or older with 10 years of participation in
DCRP or any age with 25 years of participation. In the case of members enrolled due to
income levels in excess of maximum compensation limits, years of participation in either
scenario would also include participation in PERS.
DCRP members are eligible employer-paid long-term disability coverage after one year of
participation. Eligibility occurs after six consecutive months of total disability. Members
would receive a regular monthly income benefit up to 60% of the base salary on which
DCRP contributions were based during the 12 months preceding the onset of the disability,
offset by any other periodic benefit the member may be receiving. Benefits will be paid so
long the member remains disabled or until the age of 70. Benefits terminate should the
member begin receiving retirement annuity payments. As of June 30, 2014, the City has 207
employees who were DCRP Members.
NOTE 9. COMPENSATED ABSENCES
Under the existing union contracts and policy of the City, certain employees are allowed to
accumulate unused vacation and sick pay over the life of their working careers. In addition,
certain employees are also entitled to accrue 7.5 terminal leave days for every year of service.
These compensated absences and terminal leave may be taken as time off or paid at a later date
and at an agreed upon rate. The accumulated cost of such unpaid compensation is not required to
be reported in the financial statements as presented. The City appropriates, annually, the
amounts required to be paid in any fiscal year in that year’s budget and no liability is accrued at
June 30, 2014 and 2013.
27
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 9. COMPENSATED ABSENCES
As of June 30, 2014 and 2013 the total accumulated compensated absence liability was
$6,154,336 and $6,142,387, respectively. In addition, as of June 30, 2014 and 2013 the terminal
leave liability was $3,410,841.
NOTE 10. TAX APPEALS
There are several tax appeals filed with the State Tax Court of New Jersey and the Hudson
County Board of Taxation requesting a reduction of assessments for various years. Any
reduction in assessed valuation will result in a refund of prior years’ taxes in the year of
settlement, which may be funded from current tax revenues through the establishment of a
reserve or by the issuance of refunding bonds per N.J.S.A. 40A:2-51.
NOTE 11. TRANSITIONAL AID CONDITIONS
The City receives a substantial amount of financial support from the State of New Jersey in the
form of Transitional Aid to Localities (Transitional Aid). P.L. 2013, c.77 and P.L. 2011, c.144
condition Transitional Aid on conditions, requirements, orders and oversight that the Director of
the Division of Local Government Services (the “Director”) deems necessary including, but not
limited to, requiring approval by the Director of personnel action, professional services and
related contracts, payment in lieu of tax agreements, acceptance of grants from State, federal or
other organizations, and the creation of new or expanded public services. The minimum
conditions on the receipt of the Transitional Aid are set forth by a Memorandum of
Understanding with the Director.
The Transitional Aid to the City from the State is material to the total revenue the City needs for
operations.
NOTE 12. CONTINGENT LIABILITIES
The City 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 expenditures of funds for eligible
purposes. The state and federal grants received and expended in fiscal year June 30, 2014 were
subject to the Single Audit Act Amendments of 1996 and State of New Jersey OMB Circular 04-
04 which mandates that grant revenues and expenditures be audited in conjunction with the
City’s annual audit.
In addition, these programs are also subject to compliance and financial audits by the grantors or
their representatives. As of June 30, 2014, the City does not believe that any material liabilities
will result from such audits.
28
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 13. RISK MANAGEMENT
The City 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.
A. PROPERTY AND LIABILITY INSURANCE
The City 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 City. Settled claims have not exceeded this commercial coverage in any of the past
three fiscal years.
B. SELF-INSURANCE PROGRAM
The City had established a self-insurance program in accordance with the New Jersey Statute
Chapter 40:10. The Chapter enabled the governing body of any local unit to create a fund to
provide insurance coverage for its exposure to a wide variety of property and casualty risks.
In 1998 the City had established a self-insured health insurance benefits program (vision,
dental, prescription and major medical) which the City later dissolved in 2010 for a fully
insured plan through Horizon Blue Cross Blue Shield of New Jersey. In 1984 the City had
established a self-insured workers’ compensation obligation program which the City later
dissolved in 2009 for a fully insured plan through the New Jersey Intergovernmental
Insurance Fund. The City still has exposure for claims from the prior self-insured worker’s
compensation obligation program. The latest available information states that at December
31, 2014 and 2013, the City’s exposure for claims incurred under its obligation to provide
workers’ compensation insurance amounted to approximately $377,555 and $402,555,
respectively (information is not available as of June 30, 2014 and 2013).
C. CONTINGENT LIABILITIES
The City is a party defendant in some lawsuits, none of a kind unusual for a municipality of
its size and scope of operation. In the opinion of the City's Attorney the potential claims
against the City not covered by insurance policies would not materially affect the financial
condition of the City, except for the following claims:
29
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 13. RISK MANAGEMENT (Continued)
C. CONTINGENT LIABILITIES (Continued)
Orchard Holdings- Contract Dispute- Mediation
Orchard is claiming additional per unit costs for the concrete work related to the installation
of 11 traffic lights. Orchard claims that during the project, state and federal authorities
dictated that the concrete at the affected intersections be ADA compliant to exact
measurements. In turn, Orchard claims that it was caused to utilize additional units of
concrete and due to the required precision, additional man hours and costs were incurred for
the additional concrete work. Therefore, Orchard is claiming that they are due an increase in
the per unit cost of the contract that should reflect the actual cost incurred and not the per unit
price listed in the contract. On January 6, 2015, the City and Orchard have agreed to resolve
this litigation by way of a settlement. The Commissioners of the City executed a settlement
agreement wherein the City will pay Orchard $70,000 in exchange for a full dismissal and
release.
D. FEDERAL AND STATE AWARDS
The City participates in a number of federal and state programs that are fully or partially
funded by grants received from other governmental units. Expenditures financed by grants
are subject to audit by the appropriate grantor government. If expenditures are disallowed
due to noncompliance with grant program regulations, the City may be required to reimburse
the grantor government. As of June 30, 2014, significant amounts of grant expenditures have
not been audited by the various grantor agencies but the City believes that disallowed
expenditures, if any, based on subsequent audits will not have a material effect on any of the
individual governmental funds or the overall financial position of the City.
NOTE 14. INTERFUND RECEIVABLES AND PAYABLES
Interfund balances remained on the balance sheets of the fund financial statement at June 30,
2014. The interfund balances are the result of revenues earned in one fund which are due to
another fund and/or expenditures paid by one fund on behalf of another fund and/or to cover cash
balances which were in a cash overdraft position. The City expects to liquidate all interfund
balances within one year.
NOTE 15. DEFERRED COMPENSATION
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 403(b) and 457(b). The plan, which is administered by Valic, permits
participants to defer a portion of their salary until future years. Amounts deferred under the
plans are not available to employees until termination, retirement, death or unforeseeable
emergency.
30
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 16. POST RETIREMENT BENEFITS
The City of Union City provides lifetime medical benefits to City employees who retire under
the following conditions:
•
After twenty-five years of membership in a state or locally administered retirement system.
•
After fifteen years or more of service and are age 62 or older.
•
Upon a disability retirement, if eligible.
Retiree Contributions
Current retirees, dependents and survivors are not required to contribute toward the cost of the
postretirement medical and prescription drug coverage. All costs are paid 100% by the City.
Any employee who retires after satisfying the eligibility requirements who had less than 20 years
of PERS or PFRS as of June 28, 2011, shall be required to contribute toward the cost of
postretirement healthcare benefits cost as set forth in P.L. 2011 c. 78 (Chapter 78). The retiree
contributions are based on a percentage of the postretirement healthcare, phased-in over a four-
year period, which vary based on healthcare coverage tier and amount of PERS or PFRS pension
amounts.
As of June 30, 2014 and 2013, the City had 366 and 361 employees, respectively, who were
eligible.
The City of Union City is self-insured and accounts for post-retirement health costs on a pay-as-
you-go basis. Expenditures during the year ended June 30, 2014 and 2013 were $6,134,190 and
$5,663,163, respectively.
In accordance with GAAP and accrual accounting principles, the costs associates with post-
employment healthcare benefits (“OPEB”), generally should be associated with the periods in
which the cost occurs, rather than in future years when it will be paid. In adopting the
requirements of GASB Statement No. 45 the cost of OPEB is recognized in the year when the
employee services are received, the accumulated liability (as calculated on a tri-ennial basis) is
reported from prior years and provides information useful in assessing potential demands on cash
flows. Recognition of the liability accumulated from prior years is phased in over 25 years,
commencing with the current 2012 liability.
As of January 1, 2012 the Actuarial Accrued Liability is $127,064,643 for retirees and
$96,575,554 for active employees for a total accrued liability of $223,640,197. Under the GASB
accounting standard, the Annual Required Contribution (“ARC”) is $19,516,529 for the year
ending December 31, 2012 assuming a 25 year amortization of the Unfunded Actuarial Accrued
Liability. The Net OPEB Obligation is $47,718,375, based on estimated 2012 cash payments of
$6,400,000 and the ARC stated above.
31
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 17. NEW JERSEY INTERGOVERNMENTAL INSURANCE FUND
The City entered into a three year agreement to participate in the New Jersey Intergovernmental
Insurance Fund (“NJIIF”) from January 1, 2011 through December 31, 2014. The NJIIF was
established in 1997 as a self-insured property and casualty insurance program for New Jersey
Municipalities. Initially, it began with 14 members and currently has approximately 40.
The Commissioners of NJIIF arrange through their insurance professionals the pooled purchase
of insurance utilizing high deductibles and self-insured retentions. The participants share in each
other’s losses through the funding of claims under these deductibles.
The program is administered by Governmental Risk Management Associates of Old Bridge,
New Jersey. The Underwriting Manager is Arthur J. Gallagher Associates of Wayne, New
Jersey. The City of Union City is represented by their Risk Management Consultant, Beckerman
& Company of Colonia, New Jersey.
NOTE 18. NORTH HUDSON SEWERAGE AUTHORITY
During October, 1996, the West New York Municipal Utilities Authority (WNYMUA) was
acquired by the Hoboken - Union City - Weehawken Sewerage Authority (HUCWSA), and
together, these entities were consolidated to create the North Hudson Sewerage Authority
(NHSA). The acquisition was executed through the issuance and sale of $104,945,000 Sewer
Revenue Bonds, Series 1996, issued by the NHSA on October 15, 1997.
In connection with the creation of the NHSA, a service agreement between the City (together
with the Hudson County municipalities of Hoboken, West New York and Weehawken) and the
NHSA was executed. The related obligation of the City with respect to the current service
agreement pertains to service charges and annual charges, as described below:
Service Charges
The NHSA will charge to users of its system, service charges, pursuant to the service agreement,
with respect to all sewage treated or disposed of by the NHSA and for all use and services of its
system, in accordance with the New Jersey Sewerage Authorities Law, Ch. 138, L. 1946, and in
a manner consistent with the submission relied upon by the United States Environmental
Protection Agency (EPA) and the New Jersey Department of Environmental Protection (NJDEP)
in issuing a federal grant or in such other manner that the EPA and the NJDEP approve. Such
service charges shall be established at rates estimated to be sufficient to provide for all amounts
necessary to pay or provide for the expenses of operation and maintenance of the NHSA’s
system and the principal and interest on any and all bonds as they become due, to maintain the
amounts required to be held on deposit in the sinking fund and the bond reserve fund and to
comply in all respects with the terms and provisions of the general bond resolution adopted by
the HUCWSA on April 24, 1989, as amended, and the New Jersey Sewerage Authorities Law,
provided, however, that the NHSA may charge service charges which are less than sufficient to
32
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 18. NORTH HUDSON SEWERAGE AUTHORITY (Continued)
Service Charges (Continued)
comply with the requirements referred to above if each of the municipalities gives its written
consent to such lesser service charges.
Annual Charges
Annual charges are based upon application of a formula which is explained in the next two
paragraphs. If, but only if, the application of the formula yields a positive dollar amount for any
fiscal year during which the service agreement is in effect, the City shall be obligated to pay to
the NHSA its allocable share of such positive dollar amount as an annual charge. Such annual
charges shall be the excess, if any of the amount determined by the items in the first paragraph
following, less the amount determined by the items in the second paragraph following to
determine the excess, if any.
The sum of all of the amounts reasonably expected by the NHSA to be expended in the fiscal
year of the NHSA (1) to pay or provide for the expenses of construction, acquisition, operation
and maintenance of its system, as well as administrative and other expenses of the NHSA related
to its system prior to placing the system in operation, and the principal of and interest on all
bonds as the same become due; (2) to maintain such reserves or sinking funds as may be required
by the terms of the contract of the NHSA or any bond resolution, or as may be deemed necessary
by the NHSA; and (3) to comply in all respects with the terms of the general bond resolution
adopted by the HUCWSA on April 24, 1989, as amended, and the New Jersey Sewerage
Authorities Law.
The sum of the following amounts to the extent available to be used to pay or provide for the
amounts described in the preceding paragraph: (1) service charges collected by the NHSA; (2)
the proceeds of bonds received by or for account of the NHSA with respect to its system; (3) the
proceeds of insurance awards received by or for account of the NHSA with respect to its system;
(4) contributions received by or for account of the NHSA with respect to its system and not
under any circumstances repayable by the NHSA until after the payment in full of all other
obligations of the NHSA including its bonds, original or refunding or both, or (5) any other funds
on hand or available therefor.
Annual charges, if any, are assessed to and payable by the City in the same percentage as the
most recent determination by the NHSA of the allocation of the annual flow among the
municipalities. The most recent determination by the NHSA of the allocation of the annual flow
is as follows: (i) Hoboken 27%, (ii) Union City 32%, (iii) Weehawken 10% and (iv) West New
York 31%.
33
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 18. NORTH HUDSON SEWERAGE AUTHORITY (Continued)
Annual Charges (Continued)
On or before January 1 of each fiscal year, the NHSA will make an estimate of the amount of the
annual charges, if any, which will become payable by the City for such fiscal year. On or before
February 15 of each fiscal year, the City will pay to the NHSA the amount of any annual charges
not paid relating to any prior fiscal year. The City will pay to the NHSA that part of the
estimated amount of the annual charges for the current fiscal year in four equal installments on
March 1, June 1, September 1, and November 1 of such fiscal year. No amounts were due from
the City for the fiscal years ended June 30, 2014 and 2013. The NHSA estimates that no
amounts will be due from the City for fiscal year ending June 30, 2015.
NOTE 19. NORTH HUDSON REGIONAL FIRE AND RESCUE
Background of the Agreement
On October 1, 1998, the Hudson County municipalities of North Bergen, Union City,
Weehawken and West New York had formed the Agreement in order to form a joint meeting
pursuant to the Consolidated Municipal Services Act, N.J.S.A. 40:48B-1 et seq. (the “Act”). The
entity created by the formation of this joint meeting is known as the North Hudson Regional Fire
and Rescue (the “NHRFR”), which is a public body, corporate and politic, constituting a political
subdivision of the State of New Jersey, having all powers and authorities permitted by the Act.
The purpose of the NHRFR is to provide for the joint operation of fire protection, rescue and
emergency services, and other related governmental services.
On December 30, 1998, another Hudson County municipality, the Town of Guttenberg, duly
adopted a resolution approving it to officially enter into the Agreement, and Guttenberg was
admitted to participate in the NHRFR.
The term of the Agreement expires September 30, 2023, but may be subject to earlier
termination pursuant to the Act. The operations of the NHRFR commenced on January 1, 1999.
The NHRFR is governed by a five member management committee, consisting of one
representative from each municipality, and this committee may appoint one or two executive
director(s), and other such officers, employees and counsel as it deems necessary. A
municipality’s admission to or withdrawal from the NHRFR requires four votes from the
management committee.
34
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 19. NORTH HUDSON REGIONAL FIRE AND RESCUE (Continued)
Required Contributions by the City
The City adopted an ordinance on September 30, 1998, authorizing the sale, lease transfer,
conveyance or other disposition of and improvement of real and personal property to the
NHRFR, pursuant to New Jersey Statutes.
As of June 30, 2014 and 2013, the City contributed $17,800,000 and $21,490,194, respectively,
to the NHRFR. This annual contribution is based on each of the four original participating
municipalities’ applicable share of the combined fiscal year 1998 fire budgets of those four
municipalities. The combined fiscal year 1998 fire budgets of those four municipalities totaled
$29,121,874. Since Guttenberg entered after this allocation was decided on, it contributes an
alternatively determined amount. This share is subject to an increase based on the percentage of
increase of the total fire and rescue related appropriations over the base year (SFY 1998) of the
four original participating municipalities. Guttenberg’s allocation is subject to this rate increase,
but is not subject to the matter described below regarding a redetermination of the allocation
formula. The Agreement also contains provisions for a growth value adjustment to be made in
calendar year 2001, in which the budget balance allocation formula described above is
redetermined. This redetermined allocation is based upon a factor entitled “Growth Percentage”.
This factor is determined by expressing “Growth Value” as a percentage of the total of all
equalized values of the four original participating municipalities. Growth value is determined by
taking the aggregate assessed value of all new construction in the City from July 1, 1997 through
June 30, 2000, and deducting from that the aggregate assessed value of all demolition. If the
resulting amount is negative, the growth value is expressed as zero.
With respect to the redetermined allocation formula, the Agreement expressly states:
“Starting with the NHRFR fiscal year budget for January 1, 2001 through December 31, 2001,
allocations of the Budget Balance among the Original Parties shall be subject to two (2) separate
calculations, as follows:
FIRST, the Budget Balance shall be multiplied by the Total Growth Percentage, and the product
so determined shall be allocated among the Original Parties in ratio to their respective Individual
Growth Percentages; and
SECOND, there shall be subtracted from the Budget Balance determined in FIRST above, and
the remainder of the Budget Balance amount shall be allocated among the Original Parties based
on their respective Base Year Percentages.”
35
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 19. NORTH HUDSON REGIONAL FIRE AND RESCUE (Continued)
Guarantee of Debt
On January 25, 2005 the Hudson County Improvement Authority issued $8,565,000 in Lease
Revenue Bonds Series 2005, consisting of $4,510,000 Tax-Exempt Lease Revenue Bonds, Series
2005A and $4,055,000 Taxable Lease Revenue Bonds, Series 2005B. These Series 2005 Bonds
were issued to finance certain costs associated with the facilities leased to and utilized by the
NHRFR. The Series 2005 Bonds are payable and secured by revenues of the Authority, which
are derived from the lease of the Facilities to NHRFR. The lease payments, which are allocated
among the municipalities participating in the NHRFR are sufficient to pay the debt service on the
Series 2005 Bonds. As additional security, each of the municipalities participating in the
NHRFR unconditionally guaranteed their percentage share of debt service on each series of the
Series 2005 Bonds. In the event that a municipalities’ percentage share of revenues is not
sufficient to pay its percentage share of debt service, the municipality is obligated to levy ad
valorem taxes upon all taxable property within its jurisdiction without limitation as to rate or
amount in order to make such payments.
NOTE 20. CLEARING ACCOUNT
The City maintains a claims account, or a cash clearing account, from which bills are paid for all
funds.
NOTE 21. FIXED ASSETS
The City had the following investment balance and activity in general fixed assets for and as of
the year ended June 30, 2014:
Balance
June 30, 2013
Balance
As Restated
Additions
Deletions
June 30, 2014
Land
11,228,900
$
-
$
-
$
11,228,900
$
Buildings and Improvements
47,682,641
1,692,211
-
49,374,852
Furniture and Fixtures
69,871
-
-
69,871
Machinery and Equipment
7,527,051
207,545
-
7,734,596
66,508,463
$
1,899,756
$
-
$
68,408,219
$
36
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 22. DEFERRED CHARGES
Certain expenditures are required to be deferred to budgets of succeeding years. As of June 30,
2014, the following deferred charges are shown on the balance sheets of the Current Fund:
Increased by:
Decreased by:
Adjustments to
Balance
Income before
Budget
Balance
June 30, 2013
Fund Balance
Appropriations
June 30, 2014
Expenditures without Appropriations:
Current Fund
Other Expenses
18,782
$
-
$
-
$
18,782
$
Salaries and Wages Balance Adjustment
88,038
-
87,484
554
Grant Fund
Pedestrian Safety Grant
-
14,000
-
14,000
Overexpended Appropriation Reserve:
Other Expenses
-
208,214
-
208,214
Overexpended Grant Fund:
Municipal Alliance Grant
-
17,477
-
17,477
Overexpended Trust Fund reserves:
CDA Trust Fund
111,512
-
111,512
-
Other Trust Fund
95,874
-
95,874
-
Public Defender Trust Fund
41,451
-
41,451
-
State Unemployment Trust Fund
21,159
-
21,159
-
Deficit in Operations
32,080
-
32,080
-
Cancelled Grants Receivable
1,004,357
-
252,000
752,357
Retirment Benefits (5 Years Future Taxation)
3,200,000
-
640,000
2,560,000
4,613,253
$
239,691
$
1,281,560
$
3,571,384
$
37
THE CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
NOTE 23. SUBSEQUENT EVENTS
On October 16, 17, 21 and 22, and November 25, 2014, the State of New Jersey, Department of
Agriculture performed an administrative review of the 2014 Summer Food Program. The
administrative review process is designed to check program compliance and determine if the
City has systems accountability in place for the period of June through August to accurately
identify eligible meals for reimbursement and legitimate program expenses. The administrative
review is not a formal audit process. Based on the administrative review, the state agency has
made comments and listed program deficiencies noted as well as the corresponding corrective
actions necessary for program compliance.
Issuance of Notes
On November 25, 2014, the City sold a note through the HCIA pooled note financing program in
the amount of $29,931,000 at an interest rate of 1.00%.
Capital Ordinances
On October 21, 2014, the City adopted a bond ordinance authorizing the completion of various
capital improvements and the acquisition of various capital equipment in the amount of
$35,000,000, authorizing the issuance of bonds or notes in the same amount.
On October 21, 2014, the City adopted a capital improvement ordinance to provide funding for
the reconstruction and/or repaving of Summit Avenue in the amount of $300,000.
NOTE 24. RESTATEMENT OF BEGINNING BALANCE-FIXED ASSETS GROUP OF
ACCOUNTS
During the audit of the Fixed Assets Group of Accounts, it was determined that the prior year
ending balances were not correct. In prior years, the appraisal company included, in buildings
and improvements, sidewalks in the City which are not considered fixed assets per GASB 34.
38
SUPPLEMENTARY INFORMATION – CURRENT FUND
EXHIBIT A-4
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF CASH - TREASURER
Ref.
Balance, June 30, 2013
A
18,813,607
$
Increased by Receipts:
Miscellaneous Revenues Not Anticipated
A-2
396,762
$
Petty Cash
A-5
2,000
Tax Collector
A-6
99,469,317
Revenue Accounts Receivable
A-10
34,621,625
Interfunds
A-11
14,279,486
State of New Jersey - Veterans and
Senior Citizens Deductions
A-12
66,424
Tax Title Liens
A-13
38,315
Other Liabilities
A-16
684,404
Other Reserves
A-17
123,893
Note Payable
A-24
2,560,000
Grants Receivable
A-25
2,676,623
Reserve for Grants - Unappropriated
A-26
15,803
154,934,652
173,748,259
Decreased by Disbursements:
Expenditures without Appropriations
A-1
14,000
Overexpenditure of Appropriation Reserves
A-1
208,214
Overexpenditure of Grants
A-1
17,477
Appropriations
A-3
100,912,885
Petty Cash
A-5
2,000
Tax Overpayments
A-8
546,350
Interfunds
A-11
17,690,799
Appropriation Reserves
A-15
781,460
Other Liabilities
A-16
21,012
Other Reserves
A-17
749,751
Local School District Taxes Payable
A-19
16,960,500
County Taxes Payable
A-20
16,413,178
Accounts Payable
A-21
121,890
Reserve for Encumbrances
A-22
5,238,796
Notes Payable
A-24
3,200,000
Grants Appropriated
A-27
834,985
163,713,297
Balance, June 30, 2014
A
10,034,962
$
EXHIBIT A-5
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF PETTY CASH
Ref.
Balance, June 30, 2013
-
$
Increased by:
Cash Receipts
A-4
2,000
2,000
Decreased by:
Cash Disbursements
A-4
2,000
Balance, June 30, 2014
-
$
EXHIBIT A-6
SCHEDULE OF CASH - TAX COLLECTOR
Ref.
Balance, June 30, 2013
-
$
Increased by:
Operating Fund:
Taxes Receivable
A-7
98,035,959
$
Tax Overpayments
A-8
544,134
Revenue Accounts Receivable
A-10
967,836
Prepaid Taxes
A-18
93,263
99,641,192
99,641,192
Decreased by:
Payments to Treasurer
A-4
99,469,317
Tax Refunds
A-7
171,875
99,641,192
Balance, June 30, 2014
-
$
EXHIBIT A-7
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF TAXES RECEIVABLE
Added and
Senior Citizens
Balance
Omitted
2014
2012-2013
2013-2014
and Veterans
Transferred to
Adjustments/
Balance
Year
June 30, 2013
Taxes
Tax Levy
Collections
Collections
(Refunds)
Deductions
Tax Title Liens
Cancellations
June 30, 2014
2012-2013
110,490
$
-
$
-
$
-
$
35,806
$
(171,875)
$
-
$
62,344
$
171,875
$
12,340
$
110,490
-
-
-
35,806
(171,875)
-
62,344
171,875
12,340
2013-2014
-
487,480
97,693,484
115,806
98,000,153
-
62,048
-
(171,875)
174,832
110,490
$
487,480
$
97,693,484
$
115,806
$
98,035,959
$
(171,875)
$
62,048
$
62,344
$
-
$
187,172
$
Ref.
A
Below
Below
A-18
A-6
A-6
A-12
A-13
Reserve
A
Ref.
Levy 2013-2014
Above
97,693,484
$
Delinquent
Current
Added Taxes
Above
487,480
Collections/(Refunds):
Total Municipal Levy
Below
98,180,964
$
2012-2013
(171,875)
$
115,806
$
2013-2014
35,806
98,000,153
Tax Levy
Local District School Tax
A-19
15,418,637
$
Senior Citizens' and
County Taxes
A-20
16,327,089
Veterans' Deductions
-
62,048
Due to County for Added Taxes
A-20
86,089
31,831,815
$
Tax Title Liens
38,315
-
Amount to be Raised by Taxes
A-2
66,869,983
(97,754)
$
98,178,007
$
Adjustment to Added Assessments
(520,834)
Ref.
Below
A-2
66,349,149
Refunds of Prior Year Taxes
A-1
(171,875)
$
Above
98,180,964
$
Receipts from Delinquent Taxes
A-2
74,121
Above
(97,754)
$
EXHIBIT
A-8
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF TAX OVERPAYMENTS
Ref.
Balance, June 30, 2013
A
Increased by:
Tax Judgements on Prior Year Taxes
A-1
16,349
$
Cash Collections
A-6
544,134
Decreased by:
Cash Disbursements
A-4
Balance, June 30, 2014
A
EXHIBIT A-9
SCHEDULE OF FORECLOSED PROPERTY
AT ASSESSED VALUATIONS
Ref.
Balance, June 30, 2013
A
Balance, June 30, 2014
A
22,022
$
36,155
$
582,505
546,350
560,483
171,900
$
171,900
$
1/2
EXHIBIT A-10
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE
Balance
Accrued
Collections
Interfunds
Balance
Ref.
June 30, 2013
in 2013-2014
Collector
Treasurer
Receivable
Cancelled
June 30, 2014
Licenses:
Alcoholic Beverage
A-2
-
$
216,648
$
216,648
$
-
$
-
$
-
$
-
$
Other
A-2
-
141,076
141,076
-
-
-
-
Fees and Permits
A-2
-
169,417
169,417
-
-
-
-
Fines and Costs:
Municipal Court
A-2
-
2,632,917
-
2,632,917
-
-
-
Interest and Costs on Taxes
A-2
-
440,695
440,695
-
-
-
-
Interest on Investments and Deposits
A-2
-
34,683
-
34,683
-
-
-
Wedding Fees
A-2
-
32,025
-
32,025
-
-
-
Cable Franchise Fees
A-2
-
230,467
-
230,467
-
-
-
Payment in Lieu of Taxes
Union Plaza Apartments
A-2
-
251,151
-
251,151
-
-
-
Union City Renaissance Urban Renewal
A-2
-
10,248
-
10,248
-
-
-
Palisade Urban Renewal Assoc.
A-2
-
40,786
-
40,786
-
-
-
Holy Rosary
A-2
-
20,288
-
20,288
-
-
-
Horizon Heights
A-2
-
14,973
-
14,973
-
-
-
Consolidated Municipal Property Tax Relief Aid
A-2
-
4,300,699
-
4,300,699
-
-
-
Energy Receipts Taxes
A-2
9,449,463
-
9,449,463
-
-
-
Additional State School Aid
A-2
-
1,427,475
-
1,427,475
-
-
-
Transitional Aid
A-2
-
18,000,000
-
13,500,000
-
-
4,500,000
Uniform Construction Code Fees
A-2
-
1,222,359
-
1,222,359
-
-
-
Union City Board of Education:
Lease Recreational Center
A-2
-
300,000
-
-
-
-
300,000
Solid Waste Removal
A-2
-
360,000
-
-
-
-
360,000
Gasoline
A-2
80,000
40,000
-
34,159
-
85,841
-
47th Street Pool
A-2
-
136,000
-
113,333
-
-
22,667
Off Duty Police Officers
A-2
-
80,000
-
62,280
-
-
17,720
Snow Removal
A-2
-
20,437
-
-
-
20,437
Police Services
A-2
-
604,569
-
-
-
-
604,569
School Crossing Guards
A-2
-
951,971
-
-
-
-
951,971
Interfunds:
Due from CDA Trust Fund
A-2, A-11
-
98,997
-
98,997
-
-
-
Due from Other Trust Fund
A-2, A-11
-
119,065
-
119,065
-
-
-
Due from Dog License Trust Fund
A-2, A-11
-
6,553
-
6,553
-
-
-
2/2
EXHIBIT A-10
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE
Balance
Accrued
Collections
Interfunds
Balance
Ref.
June 30, 2013
in 2013-2014
Collector
Treasurer
Receivable
Cancelled
June 30, 2014
Reserve for Payment of Debt - General Capital Fund
A-2, A-11
-
761,597
-
-
761,597
-
-
North Hudson Community Action Health Center Lease
A-2
-
97,680
-
97,680
-
-
-
Emergency Medical Services
A-2
-
711,178
-
711,178
-
-
-
Five Year Abatement Program
A-2
-
210,846
-
210,846
-
-
-
80,000
$
43,134,263
$
967,836
$
34,621,625
$
761,597
$
85,841
$
6,777,364
$
Ref.
A
A-2
A-6
A-4
A-11
A-1
A
EXHIBIT A-11
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF INTERFUNDS RECEIVABLE/(PAYABLE)
General
Dog
Capital
Other
Public Defender
Licenses
CDA
Ref.
Total
Fund
Trust Fund
Trust Fund
Trust Fund
Trust Fund
Balance, June 30, 2013
Receivable
A
214,499
$
-
$
119,065
$
-
$
8,463
$
86,971
$
Payable
A
(1,282,976)
(1,281,613)
-
(1,363)
-
-
(1,068,477)
(1,281,613)
119,065
(1,363)
8,463
86,971
Increased by:
Statutory Excess
A-1
2,755
-
-
-
2,755
-
Cash Disbursements
A-4
17,690,799
4,699,084
12,048,567
28,196
1,459
913,493
Revenue Accounts Receivable
A-10
761,597
761,597
-
-
-
-
18,455,151
5,460,681
12,048,567
28,196
4,214
913,493
Decreased by:
Anticipated Revenue
A-2, A-10
224,615
-
119,065
-
6,553
98,997
Charges to 2014 Appropriations
A-3
321,196
300,000
-
21,196
-
-
Cash Receipts
A-4
14,279,486
1,526,597
11,716,300
5,637
5,952
1,025,000
14,825,297
1,826,597
11,835,365
26,833
12,505
1,123,997
Balance, June 30, 2014
Receivable
A
2,684,910
2,352,471
332,267
-
172
-
Payable
A
(123,533)
-
-
-
(123,533)
2,561,377
$
2,352,471
$
332,267
$
-
$
172
$
(123,533)
$
Interfund Returned
A-1
123,533
$
-
$
-
$
-
$
-
123,533
Interfund Advanced
A-1
2,659,657
2,352,471
307,014
-
172
-
EXHIBIT A-12
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF DUE TO THE STATE OF NEW JERSEY
FOR SENIOR CITIZENS' AND VETERANS' DEDUCTIONS
Ref.
Balance, June 30, 2013
A
Increased by:
Senior Citizens' and Veterans' Deductions
Disallowed by Tax Collector (Net)
Below
12,702
$
Cash Receipts
A-4
66,424
Decreased by:
Senior Citizens' and Veterans' Deductions
Per Tax Billings (Net)
Below
73,500
Senior Citizens' and Veterans' Deductions
Allowed by Tax Collector (Net)
Below
1,250
Balance, June 30, 2014
A
Analysis of State's Share of Senior Citizens' and Veterans' Deductions
Senior Citizens' and Veterans' Deductions (Net):
Per Tax Billings
Above
73,500
$
Allowed by Tax Collector
Above
1,250
Disallowed by Tax Collector
Above
(12,702)
A-7
28,970
$
74,750
79,126
108,096
33,346
$
62,048
$
EXHIBIT A-13
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF TAX TITLE LIENS RECEIVABLE
Ref.
Balance, June 30, 2013
A
Increased by:
Transfer from Taxes Receivable
A-7
Decreased by:
Cash Receipts
A-4
Balance, June 30, 2014
A
81,018
$
62,344
119,333
56,989
$
38,315
EXHIBIT A-14
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF OTHER RECEIVABLES
Transfer from
Balance
FY13 Appropriation
June 30, 2013
Reserves
Due from:
Redevelopment Agency
21,723
$
3,362
$
Total Other Receivables
21,723
$
3,362
$
Ref.
A
A-15
18,361
$
A
Balance
June 30, 2014
18,361
$
1/5
See Accompanying Notes to the Financial Statements.
EXHIBIT A-15
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
STATEMENT OF APPROPRIATION RESERVES
Balance
Balance
After
Paid or
Balance
Expenditures
Ref.
June 30, 2013
Transfers
Charged
Lapsed
Operations within "CAPS"
DEPARTMENT OF PUBLIC AFFAIRS
Director's Office
Salaries and Wages
167
$
167
$
-
$
167
$
Other Expenses
799
799
618
181
Municipal Court
Salaries and Wages
11,446
846
-
846
Other Expenses
7,999
16,799
16,350
449
Public Defender
Other Expenses
9,800
9,800
9,175
625
Senior Citizens
Salaries and Wages
151
151
-
151
Other Expenses
9,798
5,798
4,865
933
Hispanic/Cultural Affairs
Other Expenses
351
1,351
1,112
239
North Hudson Council of Mayors
Other Expenses
51,947
51,947
51,159
788
Municipal Land Use Law (NJS 40:55D-1)
Regional Planning Board
Salaries and Wages
700
700
-
700
Other Expenses
-
-
-
-
Continuous Planning Program
2,035
4,835
4,800
35
Veterans Affairs
Salaries and Wages
300
300
-
300
Other Expenses
200
200
-
200
Celebration of Public Events
Other Expenses
39
39
(301)
340
Total Department of Public Affairs
95,732
93,732
87,778
5,954
Detail:
Salaries and Wages
12,764
2,164
-
2,164
Other Expenses
82,968
91,568
87,778
3,790
DEPARTMENT OF REVENUE AND FINANCE
Director's Office
Salaries and Wages
1
1
-
1
Other Expenses
118
118
(100)
218
City Clerk's Office
Salaries and Wages
3,138
3,138
-
3,138
Other Expenses
16,923
16,923
8,621
8,302
Treasurer's Office
Salaries and Wages
8,340
1,940
-
1,940
Other Expenses
17,280
21,280
19,207
2,073
Assessment of Taxes
Salaries and Wages
7,110
-
-
-
Other Expenses
5,777
29,177
29,124
53
Collection of Taxes
Salaries and Wages
4,470
4,470
-
4,470
Other Expenses
8,262
6,312
6,100
212
Central Purchasing
Salaries and Wages
10,925
10,925
3,000
7,925
Other Expenses
367
367
110
257
Rent Control Board
Salaries and Wages
5,008
-
-
-
Other Expenses
-
8,800
8,782
18
2/5
See Accompanying Notes to the Financial Statements.
EXHIBIT A-15
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
STATEMENT OF APPROPRIATION RESERVES
Balance
Balance
After
Paid or
Balance
Expenditures
Ref.
June 30, 2013
Transfers
Charged
Lapsed
DEPARTMENT OF REVENUE AND FINANCE
(Continued)
Insurance
General Liability
25,134
$
25,134
$
25,045
$
89
$
Workers Compensation
2,382
2,382
1,650
732
Employee Group Health
122,052
34,952
34,941
11
Tax Searches
Salaries and Wages
200
200
-
200
Elections
Salaries and Wages
96
96
-
96
Other Expenses
241
2,191
1,950
241
Annual Audit
Other Expenses
67,700
67,700
67,700
-
Tax Sale Costs
Other Expenses
15,000
15,000
13,543
1,457
Postage-All Departments
Other Expenses
4,497
2,752
2,752
-
Data Processing
Other Expenses
858
858
(400)
1,258
CDA Operations
Salaries and Wages
1,704
1,704
-
1,704
Total Department of Revenue and Finance
327,583
256,420
222,025
34,395
Detail:
Salaries and Wages
40,992
22,474
3,000
19,474
Other Expenses
286,591
233,946
219,025
14,921
DEPARTMENT OF PUBLIC SAFETY
Director's Office
Salaries and Wages
8,116
8,116
-
8,116
Other Expenses
2,306
2,306
1,162
1,144
Weddings
Salaries and Wages
750
750
-
750
Legal Department
Salaries and Wages
1,000
-
-
-
Other Expenses
7,568
27,568
21,594
5,974
Police Department
Salaries and Wages
59,654
36,717
4,160
32,557
Overtime
21,770
70
(5,666)
5,736
Other Expenses
31,706
31,706
16,362
15,344
Traffic Signs and Safety
Other Expenses
313
16,613
12,149
4,464
Emergency Management Services
Salaries and Wages
923
923
-
923
Other Expenses
475
475
64
411
Emergency Medical Services
Salaries and Wages
892
892
-
892
Other Expenses
6,049
6,049
3,887
2,162
Life Hazard Use Fee-Uniform Fire Safety
Salaries and Wages
2,311
2,311
-
2,311
Other Expenses
3,694
3,094
-
3,094
Contribution to Union City Redevelopment Agency
3,415
3,415
3,415
-
3/5
See Accompanying Notes to the Financial Statements.
EXHIBIT A-15
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
STATEMENT OF APPROPRIATION RESERVES
Balance
Balance
After
Paid or
Balance
Expenditures
Ref.
June 30, 2013
Transfers
Charged
Lapsed
DEPARTMENT OF PUBLIC SAFETY
(Continued)
Board of Health
Salaries and Wages
354
$
354
$
-
$
354
$
Other Expenses
213
6,113
5,953
160
Divisions of Inspections
Other Expenses
600
600
-
600
School Crossing Guards
Salaries and Wages
4,401
25,336
25,333
3
Other Expenses
1
1
-
1
Total Department of Public Safety
156,511
173,409
88,413
84,996
Detail:
Salaries and Wages
100,171
75,469
23,827
51,642
Other Expenses
56,340
97,940
64,586
33,354
DEPARTMENT OF PUBLIC WORKS
Director's Office
Salaries and Wages
12,061
12,061
-
12,061
Other Expenses
1,297
1,297
492
805
Street Cleaning
Salaries and Wages
5,842
5,842
-
5,842
Other Expenses
3,369
3,369
2,008
1,361
Streets Repairs and Maintenance
Other Expenses
5,340
5,340
899
4,441
Board of Adjustment
Salaries and Wages
500
500
-
500
Other Expenses
11,398
32,598
21,103
11,495
Solid Waste Disposal
Salaries and Wages
801
801
-
801
Other Expenses
392,582
352,582
352,582
-
Recycling Program
Other Expenses
25,389
30,689
30,537
152
Public Assistance
Other Expenses
5,382
6,082
5,882
200
Engineering Services
Other Expenses
50,026
72,526
72,456
70
Total Department of Public Works
513,987
523,687
485,959
37,728
Detail:
Salaries and Wages
19,204
19,204
-
19,204
Other Expenses
494,783
504,483
485,959
18,524
DEPARTMENT OF PARKS AND PUBLIC PROPERTY
Director's Office
Salaries and Wages
7,921
7,921
-
7,921
Other Expenses
2,688
2,688
1,313
1,375
Parks and Playgrounds
Salaries and Wages
5,071
4,071
(479)
4,550
Other Expenses
2,023
2,023
1,046
977
Public Buildings and Grounds
Other Expenses
33,340
42,440
42,169
271
Recreation
Salaries and Wages
-
-
-
-
Other Expenses
29,840
49,840
39,004
10,836
4/5
See Accompanying Notes to the Financial Statements.
EXHIBIT A-15
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
STATEMENT OF APPROPRIATION RESERVES
Balance
Balance
After
Paid or
Balance
Expenditures
Ref.
June 30, 2013
Transfers
Charged
Lapsed
DEPARTMENT OF PARKS AND PUBLIC PROPERTY
(Continued)
Interlocal Municipal Service Agreements
Recreation Center Lease
83,514
$
83,514
$
2,891
$
80,623
$
Total Department of Parks and Public Property
164,397
192,497
85,944
106,553
Detail:
Salaries and Wages
12,992
11,992
(479)
12,471
Other Expenses
151,405
180,505
86,423
94,082
UNIFORM CONSTRUCTION CODE
State Uniform Construction Code Officials:
Salaries and Wages
15,189
15,189
-
15,189
Other Expenses
7,950
7,950
5,437
2,513
Sub-Code Officials:
Plumbing Inspector
Other Expenses
500
500
-
500
Electrical Inspector
Other Expenses
500
500
-
500
Elevator Inspector
Other Expenses
2,608
2,608
450
2,158
Fire Inspector
Salaries and Wages
347
347
-
347
Other Expenses
500
500
-
500
Total Uniform Construction Code
27,594
27,594
5,887
21,707
Detail:
Salaries and Wages
15,536
15,536
-
15,536
Other Expenses
12,058
12,058
5,887
6,171
UNCLASSIFIED
Gasoline
34,264
34,264
20,678
13,586
Telephone
24,589
24,589
4,946
19,643
Electricity
164,861
164,861
52,712
112,149
Water
4,541
4,541
4,541
-
Natural Gas
224,840
214,991
20,591
194,400
Street Lighting
143,397
143,397
98,167
45,230
Sewer
237
237
-
237
Fire Hydrants
24,998
24,998
24,018
980
Printing-All Departments
21,843
63,843
62,945
898
Photocopying
13,571
7,571
7,266
305
Fleet Maintenance & Repairs
30,952
30,952
8,694
22,258
Total Unclassified
688,093
714,244
304,558
409,686
Detail:
Salaries and Wages
-
-
-
-
Other Expenses
688,093
714,244
304,558
409,686
TOTAL OPERATIONS WITHIN "CAPS"
1,973,897
1,981,583
1,280,564
701,019
Detail
Salaries and Wages
201,659
146,839
26,348
120,491
Other Expenses
1,772,238
1,834,744
1,254,216
580,528
5/5
See Accompanying Notes to the Financial Statements.
EXHIBIT A-15
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
STATEMENT OF APPROPRIATION RESERVES
Balance
Balance
After
Paid or
Balance
Expenditures
Ref.
June 30, 2013
Transfers
Charged
Lapsed
DEFERRED CHARGES AND STATUTORY
EXPENDITURES - MUNICIPAL WITHIN "CAPS"
Statutory Expenditures - Contributions to:
Social Security System (O.A.S.I.)
14,257
$
5,257
$
-
$
5,257
$
Consolidated Police and Firemen's Pension Fund
1
1
-
1
Unemployment Insurance
-
1,314
1,314
-
Defined Contribution Retirement Plan
7
7
-
7
Total Deferred Charges and Statutory Expenditures -
Municipal Within "CAPS"
14,265
6,579
1,314
5,265
Total General Appropriations for Municipal Purposes
Within "CAPS"
1,988,162
1,988,162
1,281,878
706,284
OTHER OPERATIONS EXCLUDED FROM "CAPS"
Maintenance of Free Public Library
85,769
85,769
85,769
-
Contribution to North Hudson Fire & Rescue Joint Meeting
252,398
252,398
252,234
164
Total Other Operations Excluded from "CAPS"
338,167
338,167
338,003
164
Total Operations Excluded from "CAPS"
338,167
338,167
338,003
164
Detail
Other Expenses
338,167
338,167
338,003
164
TOTAL GENERAL APPROPRIATIONS
2,326,329
$
2,326,329
$
1,619,881
$
706,448
$
Ref.
A
Below
A-1
Cash Disbursements
A-4
781,460
$
Deferred Charges - Overexpenditures
A-23
208,214
Due from Union City Redevelopment Agency
A-14
3,362
Maintenance of Free Public Library
A-17
83,341
Transfer to Accounts Payable
A-21
543,504
Above
1,619,881
$
EXHIBIT A-16
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF OTHER INTERGOVERNMENTAL LIABILITIES
Balance
Cash
Cash
June 30, 2013
Receipts
Disbursements
Due to:
North Hudson Sewerage Authority
1,757,123
$
644,328
$
-
$
NJ Construction Code Fees
8,352
40,076
21,012
1,765,475
$
684,404
$
21,012
$
Ref.
A
A-4
A-4
2,428,867
Balance
June 30, 2014
2,401,451
27,416
A
EXHIBIT A-17
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF OTHER RESERVES
Balance
June 30, 2013
Increased by
Decreased by
Liquor License Retirement and Escrow
26,430
$
14,400
$
-
$
Library Bills
-
83,341
-
Outside Lien Holder
2,022
-
-
COAH Security Deposit
34,689
-
-
Reserve for Prior Year Bills
-
21,196
-
Reserve for Parking Authority Surcharge
-
109,493
64,391
Retirement Benefits
685,360
-
685,360
748,501
$
228,430
$
749,751
$
Ref.
A
Below
Below
Charge to 2014 Budget Appropriations
A-3
21,196
$
-
$
Cash Receipts
A-4
123,893
-
Cash Disbursements
A-4
-
749,751
Charges to 2013 Appropriation Reserves
A-15
83,341
-
Above
228,430
$
749,751
$
2,022
83,341
227,180
$
A
-
34,689
45,102
Balance
June 30, 2014
40,830
$
21,196
EXHIBIT A-18
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF PREPAID TAXES
Ref.
Balance, June 30, 2013
A
Increased by:
Cash Collections
A-6
Decreased by:
Applied to 2013 Taxes
A-7
Balance, June 30, 2014
A
93,263
115,806
$
93,263
$
209,069
115,806
EXHIBIT A-19
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF LOCAL SCHOOL DISTRICT TAXES PAYABLE
Ref.
Balance, June 30, 2013
A
Increased by:
Levy School Year
A-1, A-2, A-7
Decreased by:
Cash Disbursements
A-4
Balance, June 30, 2014
A
EXHIBIT A-20
SCHEDULE OF COUNTY TAXES PAYABLE
Ref.
Balance, June 30, 2013
A
Increased by:
County Taxes
A-7
16,327,089
$
Added Taxes
A-7
86,089
A-1, A-2
Decreased by:
Cash Disbursements
A-4
Balance, June 30, 2014
A
15,418,637
13,876,773
$
29,295,410
16,960,500
12,334,910
$
16,413,178
16,413,178
-
$
-
$
16,413,178
EXHIBIT A-21
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF ACCOUNTS PAYABLE
Ref.
Balance, June 30, 2013
A
Increased by:
Charges to Appropriation Reserves
A-15
Decreased by:
Cash Disbursements
A-4
Balance, June 30, 2014
A
EXHIBIT A-22
SCHEDULE OF RESERVE FOR ENCUMBRANCES
Ref.
Balance, June 30, 2013
A
Increased by:
Charges to 2013 Appropriations
A-3
3,234,912
$
Grants Appropriated
A-27
761,505
Decreased by:
Cash Disbursements
A-4
Balance, June 30, 2014
A
3,996,417
121,890
9,235,213
5,238,796
$
665,394
121,890
$
3,996,417
$
543,504
543,504
$
5,238,796
EXHIBIT A-23
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF DEFERRED CHARGES
Increased by:
Decreased by:
Adjustments to
Balance
Income before
Budget
June 30, 2013
Fund Balance
Appropriations
Expenditures without Appropriations:
Current Fund
Other Expenses
18,782
$
-
$
-
$
Salaries and Wages Balance Adjustment
88,038
-
87,484
Grant Fund
Pedestrian Safety Grant
-
14,000
-
Overexpended Appropriation Reserve:
Other Expenses
-
208,214
-
Overexpended Grant Fund:
Municipal Alliance Grant
-
17,477
-
Overexpended Trust Fund reserves:
CDA Trust Fund
111,512
-
111,512
Other Trust Fund
95,874
-
95,874
Public Defender Trust Fund
41,451
-
41,451
State Unemployment Trust Fund
21,159
-
21,159
Deficit in Operations
32,080
-
32,080
Cancelled Grants Receivable
1,004,357
-
252,000
Retirement Benefits (5 Years Future Taxation)
3,200,000
-
640,000
4,613,253
$
239,691
$
1,281,560
$
Ref.
A
Below
A-3
Expenditures without Appropriations
A-1
14,000
$
Overexpenditures - Appropriation Reserves
A-1, A-15
208,214
Overexpenditures - Grant Fund
A-1
17,477
Above
239,691
$
2,560,000
18,782
$
-
-
-
-
554
A
3,571,384
$
June 30, 2014
Balance
752,357
-
17,477
14,000
208,214
EXHIBIT A-24
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF NOTE PAYABLE
Ref.
Balance, June 30, 2013
A
Increased by:
Cash Receipts
A-4
Decreased by:
Cash Disbursement
A-4
Balance, June 30, 2014
A
2,560,000
$
2,560,000
3,200,000
$
3,200,000
5,760,000
SUPPLEMENTARY INFORMATION – STATE AND FEDERAL GRANT FUND
1/2
EXHIBIT A-25
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SFY 2014
Balance
Budget
Transfer from
June 30,
Revenue
Unappropriated
Reprogrammed/
2013
Realized
Received
Reserve
Cancelled
STATE GRANTS
NJ Department of Transportation
Transportation Trust Fund:
West Street - Phase III FY13 Discretionary Aid
39,009
$
650,000
$
487,500
$
-
$
West Street - Phase III FY13 Municipal Aid
-
250,000
112,033
-
West Street - Phase III FY13 Urban Aid
-
99,090
-
-
Summit Avenue Improvements
-
-
57,593
57,593
Summit Avenue Section 3
-
260,000
-
-
NJ Department of Law and Public Safety:
NJ Division of Criminal Justice:
Body Armor Fund
4,828
-
4,828
-
Body Armor Fund
4,446
-
13,482
9,036
NJ Division of Highway Traffic Safety:
Pedestrian School Safety
-
-
14,500
14,500
NJ Department of Environmental Protection:
Clean Communities
-
78,878
-
78,878
-
Statewide Livable Communities Aid -
Municipal Owned Historic Buildings
50,000
-
-
-
Recycling Tonnage
-
-
87,924
87,924
Green Acres Trust Fund Grant - Resevoir Purchase
650,000
-
-
-
NJ Administrative Office of the Courts:
Alcohol Education
-
2,216
-
2,216
-
NJ Office of Emergency Management:
Emergency Management Grant
5,000
-
-
-
STATE GRANTS (Continued)
NJ Department of Treasury:
NJ Division of Motor Vehicles:
Drunk Driving Enforcement Fund
-
15,748
15,748
-
-
Passed through County of Hudson:
Municipal Alliance on Alcoholism and Drug Abuse 10
13,082
-
-
-
Municipal Alliance on Alcoholism and Drug Abuse 11
39,019
-
-
-
Municipal Alliance on Alcoholism and Drug Abuse 12
6,002
-
-
-
Municipal Alliance on Alcoholism and Drug Abuse 13
30,894
-
49,988
19,094
Municipal Alliance on Alcoholism and Drug Abuse 14
-
33,172
-
-
Municipal Alliance on Alcoholism and Drug Abuse 15
-
57,412
-
-
PORT AUTHORITY OF NEW YORK AND NEW JERSEY GRANTS
Various Street Improvements
500,000
-
-
-
Various Street Improvements
2,862,395
-
-
-
COUNTY OF HUDSON GRANTS
Open Space Trust Fund:
Ellsworth Park Improvements
-
500,000
-
-
Michael Leggerio Park (Formerly 38th Street Amphitheater)
325,000
-
325,000
-
15th Street Library Glass
35,000
-
-
-
Doric Park (Firemen's Memorial Park)
400,000
-
-
-
FEDERAL GRANTS
US Department of Agriculture:
Passed through State of NJ Department of Agriculture:
Summer Food Program
15,250
151,771
40,433
-
U.S. Department of Health and Human Services:
Strengthening Union City Families
682,318
-
306,500
-
FEDERAL GRANTS (Continued)
U.S. Department of Labor:
Summer Youth Program
197,175
-
-
-
-
U.S. Department of Justice:
Bulletproof Vest Partnership Program
2,641
-
-
-
Bulletproof Vest Partnership Program
7,800
-
6,338
-
Community Oriented Policing Services (COPS) -
Secure Our Schools
31,966
-
-
-
Secure Our Schools
58,025
-
-
-
Law Technology Project
197,325
-
38,400
-
ARRA - Hiring Recovery Program
787,310
-
1,072,103
291,405
Passed through State of NJ Department of Law and Public Safety:
Passed through County of Hudson:
Byrne Justice Assistance Program
-
27,424
-
-
Byrne Justice Assistance Program
30,851
-
-
-
U.S. Department of Transportation:
State Aid Highway Project -
500,000
-
650,000
-
5,000
158,925
6,612
1,462
31,966
58,025
6,002
27,424
201,509
$
39,019
Balance
SCHEDULE OF GRANTS RECEIVABLE
June 30,
2014
99,090
260,000
-
137,967
-
126,588
400,000
13,082
35,000
-
-
-
-
2,862,395
30,851
500,000
57,412
33,172
50,000
-
2,641
-
375,818
197,175
2/2
EXHIBIT A-25
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SFY 2014
Balance
Budget
Transfer from
June 30,
Revenue
Unappropriated
Reprogrammed/
2013
Realized
Received
Reserve
Cancelled
Balance
SCHEDULE OF GRANTS RECEIVABLE
June 30,
2014
Resurface Street -
Central Avenue
35,593
$
-
$
-
$
-
$
Central Avenue
30,579
-
-
-
Transportation Trust Fund
652,403
-
-
-
Passed through State of NJ Department of Law and Public Safety:
Click It or Ticket
-
4,000
-
-
Distracted Driving Crackdown
-
5,000
-
-
Passed through State of NJ Department of Transportation:
Discretionary Program
64,000
-
-
-
Purchase of Senior Citizen Van
125,000
-
-
-
Purchase of Ambulance
75,000
-
-
-
FEDERAL GRANTS (Continued)
U.S. Department of Transportation: (Continued)
Passed through State of NJ Department of Transportation: (Continued)
29th Street Improvements
20,862
$
-
$
-
$
-
$
25th Street Improvements
100,000
-
-
-
Central Avenue
49,246
-
-
-
Various Streets
63,388
-
-
-
Various Streets
243,434
-
-
-
Signal Improvement Project
87,013
-
-
-
Mountain Road
280,800
-
-
-
Mountain Road
308,653
-
-
-
U.S. Department of Energy:
ARRA - Energy Efficiency & Conservation Block Grant
137,023
-
44,253
-
-
Total Grants
9,248,330
$
2,134,711
$
2,676,623
$
81,094
$
479,552
$
Ref.
A
Below
A-4
A-26
A-1
Budget Appropriations
A-2
720,711
$
Revenues added by N.J.S. 40A:4-87
A-2
1,414,000
Above
2,134,711
$
64,000
280,800
243,434
87,013
75,000
30,579
9,104,876
$
A
652,403
35,593
$
5,000
92,770
308,653
100,000
49,246
63,388
125,000
4,000
20,862
$
EXHIBIT
A-26
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF RESERVE FOR GRANTS - UNAPPROPRIATED
Balance
Transferred
June 30,
to
Cash
2013
Budget
Receipts
STATE GRANTS:
NJ Administrative Office of the Courts:
Alcohol Education
2,216
$
2,216
$
3,368
$
NJ Department of Environmental Protection:
Clean Communities
78,877
78,877
-
Total State Grants
81,093
81,093
3,368
HUDSON COUNTY GRANT:
Open Space Trust Fund:
Washington Park Improvements
-
-
12,435
81,093
$
81,093
$
15,803
$
Ref.
A
A-25
A-4
15,803
$
A
June 30,
2014
Balance
3,368
$
-
12,435
3,368
1/2
EXHIBIT A-27
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF RESERVE FOR GRANTS APPROPRIATED
Transferred from 2014
Balance
Budget
Deferred Charge/
June 30,
Appropr-
Reprogrammed/
Year
2013
City Match
iations
Expended
Cancelled
STATE GRANTS
NJ Department of Transportation
Transportation Trust Fund:
West Street - Phase II
2011 - 2012
61,172
$
-
$
-
$
13,792
$
-
$
West Street - Phase III FY13 Municipal Aid
2013 - 2015
-
-
250,000
250,000
-
West Street - Phase III FY13 Urban Aid
2013 - 2015
-
-
99,090
99,000
-
West Street - Phase III FY13 Discretionary Aid
2013 - 2015
-
-
650,000
485,824
-
Summit Avenue Section 3 FY14 Municipal Aid
2014 - 2015
-
-
260,000
-
-
NJ Department of Law and Public Safety:
NJ Division of Criminal Justice:
Body Armor Fund
2009 - 2010
497
-
-
-
-
Body Armor Fund
2011 - 2012
17
-
-
-
-
Body Armor Fund
2012 - 2013
14,073
-
-
13,485
-
NJ Division of Highway Traffic Safety:
Pedestrian School Safety
2013 - 2014
-
-
-
14,000
(14,000)
NJ Department of Environmental Protection:
Clean Communities Challenge Grant
2013 - 2014
-
-
78,878
192
-
Statewide Livable Communities:
Historic Buildings
2004 - 2005
50,000
-
-
-
-
Recycling Tonnage
2011 - 2012
66,289
-
-
-
-
NJ Administrative Office of the Courts:
Alcoholic Education
2010 - 2011
1,142
-
-
-
-
Alcoholic Education
2012 - 2013
5,395
-
-
1,225
-
Alcoholic Education
2013 - 2014
-
2,216
-
-
NJ Department of Treasury:
NJ Division of Motor Vehicles:
Drunk Driving Enforcement Fund
2011 - 2012
5,963
-
-
-
-
Drunk Driving Enforcement Fund
2011 - 2012
7,427
-
-
7,427
-
Drunk Driving Enforcement Fund
2013 - 2014
-
-
15,748
7,753
-
Municipal Alliance to Prevent Alcoholism and Drug Abuse
2011
4,242
-
-
4,242
-
Municipal Alliance to Prevent Alcoholism and Drug Abuse
2013
22,891
-
-
22,720
-
Municipal Alliance to Prevent Alcoholism and Drug Abuse
2014
-
8,294
33,172
58,646
(17,477)
Municipal Alliance to Prevent Alcoholism and Drug Abuse
2015
-
-
57,412
-
-
Total State Grants
239,108
8,294
1,446,516
978,306
(31,477)
COUNTY OF HUDSON GRANTS
Open Space Trust Fund
Ellsworth Park Improvements
2014 - 2016
-
500,000
-
-
15th St Library
2008
35,000
-
-
-
-
Total County Grants
35,000
-
500,000
-
-
FEDERAL GRANTS
U.S. Department of Agriculture:
Passed through NJ Department of Agriculture:
Summer Food Program
2013 - 2014
-
-
151,771
138,189
-
U.S. Department of Health and Human Services:
Strengthening Union City Families
2010 - 2011
153,007
-
-
16,703
-
Strengthening Union City Families
2011 - 2012
157,044
-
-
27,458
-
U.S. Department of Justice:
Passed through State of NJ Department of Law and Public Safety:
Community Oriented Policing Services (COPS):
Secure Our Schools
2010 - 2011
152,841
-
-
-
-
Law Technology Project
2010 - 2011
151,223
-
-
250
-
ARRA - Hiring Recovery Program
2009 - 2010
609,993
-
-
402,112
-
Passed through State of NJ Department of Law and Public Safety:
Passed through County of Hudson:
Byrne Justice Assistance Grant
2014
-
-
27,424
21,171
-
Byrne Justice Assistance Grant
2013
6,456
-
-
1,793
-
U.S. Department of Transportation:
Passed through NJ Department of Transportation:
Highway Planning and Construction -
Metropolitan Planning Organization -
Mountain Road
2011 - 2012
20,897
-
-
1,508
13,800
Passed through State of NJ Department of Law and Public Safety:
Click-it or Ticket
2013 -2014
-
-
4,000
4,000
-
Distracted Driving Crackdown
2014
-
-
5,000
5,000
-
90
171
297
-
47,380
$
497
17
260,000
50,000
-
6,253
78,686
66,289
1,142
2,216
57,412
4,170
-
150,973
-
136,304
-
5,589
129,586
4,663
207,881
152,841
588
35,000
747,089
164,176
June 30,
2014
5,963
7,995
-
500,000
535,000
13,582
2/2
EXHIBIT A-27
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF RESERVE FOR GRANTS APPROPRIATED
Transferred from 2014
Balance
Budget
Deferred Charge/
June 30,
Appropr-
Reprogrammed/
Year
2013
City Match
iations
Expended
Cancelled
June 30,
2014
U.S. Department of Energy:
ARRA - Energy Efficiency & Conservation Block Grant
2009 - 2010
73,709
$
-
$
-
$
-
$
-
$
Total Federal Grants
1,325,170
-
188,195
618,184
13,800
Total
1,599,278
$
8,294
$
2,134,711
$
1,596,490
$
(17,677)
$
Ref.
A
A-3
A-3
Below
Below
Cash Disbursements
A-4
834,985
$
Reserve for Encumbrances
A-22
761,505
Above
1,596,490
$
Deferred Charge-Expenditure without Appropriation
A-23
(14,000)
$
Deferred Charge - Overexpenditure
A-23
(17,477)
Reprogrammed/Cancelled
A-1
13,800
Above
(17,677)
$
881,381
A
2,163,470
$
73,709
$
EXHIBIT A-28
THE CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF RESERVE FOR NEIGHBORHOOD HOUSING
Ref.
Balance, June 30, 2013
A
Balance, June 30, 2014
A
1,824
$
1,824
$
SUPPLEMENTARY INFORMATION – TRUST FUNDS
EXHIBIT
B-1
THE CITY OF UNION CITY
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF CASH AND CASH EQUIVALENTS - DOG LICENSE FUND
Ref.
Balance, June 30, 2013
B
Increased by:
Sale of Dog Licenses - State
B-2
1,448
$
Sale of Dog Licenses - City
B-3
3,495
Due to Current Fund
B-4
1,030
Decreased by:
Due to Current Fund
B-4
Balance, June 30, 2014
B
EXHIBIT
B-2
SCHEDULE OF DUE TO THE STATE OF NEW JERSEY - DOG LICENSE FUND
Ref.
Balance, June 30, 2013
B
Increased by:
State Fees Collected:
Cash Receipts
B-1
Decreased by:
Transmitted to State - by Current Fund
B-4
Balance, June 30, 2014
B
4,957
938
4,019
$
1,448
13,536
12,652
$
5,973
3,509
$
26,188
20,215
$
EXHIBIT
B-3
THE CITY OF UNION CITY
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF RESERVE FOR DOG LICENSE FUND EXPENDITURES
Ref.
Balance, June 30, 2013
B
Increased by:
Cash Receipts
B-1
Decreased by:
Expenditures Paid by Current Fund
B-4
522
$
Statutory Excess
B-4
2,755
Balance, June 30, 2014
B
LICENSE FEES COLLECTED
2012
2013
3,277
8,243
$
3,495
11,738
8,461
$
3,875
8,461
$
4,586
$
EXHIBIT
B-4
THE CITY OF UNION CITY
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF DUE TO CURRENT FUND - DOG LICENSE FUND
Ref.
Balance, June 30, 2013
B
Increased by:
Transmitted to State
B-2
938
$
Reserve for Expenditures
B-3
522
Statutory Excess
B-3
2,755
Due to Current
B-1
1,030
Decreased by:
Cash Disbursements
B-1
Balance, June 30, 2014
B
8,463
$
5,245
13,708
13,536
172
$
EXHIBIT
B-5
THE CITY OF UNION CITY
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF CASH AND CASH EQUIVALENTS - OTHER TRUST FUND
Ref.
Balance, June 30, 2013
B
Increased by Cash Receipts:
Reserve for Other Trust Fund Activity
B-8
6,780,178
$
Due to Current Fund
B-9
11,021,220
Decreased by Cash Disbursements:
Reserve for Other Trust Fund Activity
B-9
11,835,365
Due to Current Fund
B-8
7,128,842
Balance, June 30, 2014
B
EXHIBIT
B-6
SCHEDULE OF DUE FROM PROPERTY OWNERS - OTHER TRUST FUND
Ref.
Balance, June 30, 2013
B
Balance, June 30, 2014
B
17,801,398
25,627,541
7,826,143
$
51,029
$
51,029
$
6,663,334
$
18,964,207
EXHIBIT
B-7
THE CITY OF UNION CITY
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF DUE FROM GENERAL CAPITAL FUND - OTHER TRUST FUND
Ref.
Balance, June 30, 2013
B
Balance, June 30, 2014
B
18,090
$
18,090
$
EXHIBIT
B-8
THE CITY OF UNION CITY
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF RESERVE FOR OTHER TRUST FUND ACTIVITY
Balance
Balance
June 30, 2013
Increase
Decrease
June 30, 2014
Accumulated Absences Trust
37,495
$
-
$
-
$
Bankruptcy for Tax Collector
257
-
-
Battered Wives
5,262
11,081
6,853
COAH
3,175
143,178
-
Court Bails
9,135
4,820
-
Cultural Center Donations
-
500
500
DARE Donations
1,845
-
-
DEA
36,212
99,494
26,512
Developer's Escrow
9,070
46,892
-
Disposal of Forfeited Property-HCLET
59,218
19,197
13,440
Fire Victims Fund
1
8,476
256
Hardship Fees - Rent Control
424
200
-
Insurance Proceeds
121,298
91,533
193,038
Outside Lien Holders - New
578,615
61,856
-
Outside Lien Holders - Old
127
-
-
Parking Authority Surcharge
100,004
88,102
180,723
P.O.A.A
151
67,493
50,220
Police Details
-
600,692
822,419
Premium of Tax Lien Sale
4,460,364
3,466,900
3,415,454
Prisoners' Property
13,077
-
-
Recycling Funds
46,656
4,484
-
Relocation Program
-
900
-
Reserve for EMS
15,715
822,585
838,300
Self Insurance Trust
676,493
195,550
872,043
Snow Removal Trust
4,725
-
4,355
Soccer Program
14,975
39,034
45,038
State Health Benefits
437,034
909,523
1,264,469
State Unemployment Insurance
44,271
11,422
32,018
Swimming Pool
1,925
5,000
3,792
Tenants Accounting Escrow
200
-
-
Tree Donation
500
-
-
Trust Company for Journal
750
-
-
Disposal of Forfeited Property
-
15,684
-
Guaranty Milling Paving
-
12,000
12,000
Peer Review
-
12,490
-
Workers' Compensation
41,596
41,092
81,108
6,720,570
$
6,780,178
$
7,862,538
$
Ref.
B
B-5
Below
Cash Disbursements
B-5
7,128,842
$
Prior Year Encumbrance Cancelled
B-10
(28,319)
Encumbrances Payable
B-10
762,015
Above
7,862,538
$
12,490
370
23,675
7,383
13,077
51,140
-
900
4,511,810
640,471
-
8,221
624
127
17,424
(221,727)
1,580
82,088
3,133
8,971
B
5,638,210
$
200
500
750
15,684
-
19,793
146,353
-
37,495
$
257
9,490
13,955
1,845
109,194
55,962
64,975
EXHIBIT
B-9
THE CITY OF UNION CITY
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF DUE TO CURRENT FUND - OTHER TRUST FUND
Ref.
Balance, June 30, 2013
B
Increased by:
Cash Receipts
B-5
11,021,220
$
Encumbrances Paid
B-10
1,027,308
Decreased by:
Due to Current Fund
B-5
Balance, June 30, 2014
B
EXHIBIT
B-10
SCHEDULE OF RESERVE FOR ENCUMBRANCES PAYABLE - OTHER TRUST FUND
Ref.
Balance, June 30, 2013
B
Increased by:
Reserve for Other Trust Fund Activity
B-8
Decreased by:
Encumbrances Cancelled
B-8
28,319
$
Reserve for Other Trust Fund Activity
B-9
1,027,308
Balance, June 30, 2014
B
12,048,528
12,167,593
1,055,627
762,015
$
1,055,627
$
1,817,642
11,835,365
762,015
119,065
$
332,228
$
EXHIBIT
B-11
THE CITY OF UNION CITY
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF CASH AND CASH EQUIVALENTS - CDA FUND
Ref.
Balance, June 30, 2013
B
Increased by Cash Receipts:
Due from HUD CDBG Grant
B-12
1,091,559
$
Reserve for Program Income
B-13
27,197
Decreased by Cash Disbursements:
Due from Current Fund
B-15
Balance, June 30, 2014
B
EXHIBIT
B-12
SCHEDULE OF DUE FROM HUD CDBG GRANT - CDA FUND
Ref.
Balance, June 30, 2013
B
Increased by:
New Grant Authorization
B-14
Decreased by:
Cash Receipts
B-11
Balance, June 30, 2014
B
1,138,796
5,760
$
1,118,756
1,091,559
519
$
1,057,585
81,211
$
47,237
$
1,124,516
1,123,997
EXHIBIT B-13
THE CITY OF UNION CITY
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF RESERVE FOR PROGRAM INCOME - CDA FUND
Ref.
Balance, June 30, 2013
Increased by:
Cash Receipts
B-11
Decreased by:
Reserve for Expenditures
B-14
Balance, June 30, 2014
-
$
-
$
27,197
27,197
27,197
EXHIBIT
B-14
THE CITY OF UNION CITY
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF RESERVE FOR COMMUNITY DEVELOPMENT
BLOCK GRANT - CDA FUND
Ref.
Balance, June 30, 2013
B
Increased by:
New Grant Authorization
B-12
1,057,585
$
Reserve for Program Income
B-13
27,197
Decreased by:
Expenditures Paid by Current Fund
B-15
Balance, June 30, 2014
B
EXHIBIT
B-15
SCHEDULE OF DUE TO/(FROM) CURRENT FUND - CDA FUND
Ref.
Balance, June 30, 2013 (Due to)
B
Increased by:
Reserve for Expenditures -
Paid by Current Fund
B-14
Decreased by:
Cash Disbursements
B-11
Balance, June 30, 2014 (Due from)
B
86,971
$
1,084,782
913,493
1,123,997
1,084,782
-
$
1,000,464
(123,533)
$
913,493
171,289
$
EXHIBIT
B-16
THE CITY OF UNION CITY
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF CASH AND CASH EQUIVALENTS -
PUBLIC DEFENDER TRUST FUND
Ref.
Balance, June 30, 2013
B
Increased by Cash Receipts:
Reserve for Expenditures
B-17
Decreased by Cash Disbursements:
Due to Current Fund
B-18
Balance, June 30, 2014
B
EXHIBIT
B-17
SCHEDULE OF RESERVE FOR PUBLIC DEFENDER
TRUST EXPENDITURES
Ref.
Balance, June 30, 2013
B
Increased by:
Received in Current Fund
B-16
Decreased by:
Paid by Current Fund
B-18
7,000
$
Accounts Payable
B-19
2,510
Balance, June 30, 2014
B
23,980
8,983
$
14,997
9,510
20,270
$
10,910
$
25,907
14,470
$
5,637
14,997
EXHIBIT B-18
THE CITY OF UNION CITY
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF DUE FROM CURRENT FUND -
PUBLIC DEFENDER TRUST FUND
Ref.
Balance, June 30, 2013
B
Increased by:
Received in Current Fund
B-16
Decreased by:
Reserve for Expenditures -
Paid by Current Fund
B-17
Balance, June 30, 2014
B
EXHIBIT B-19
SCHEDULE OF ACCOUNTS PAYABLE -
PUBLIC DEFENDER TRUST FUND
Ref.
Balance, June 30, 2013
B
Increased by:
Reserve for Expenditures
B-17
Balance, June 30, 2014
B
-
$
3,290
$
5,800
$
2,510
7,000
1,363
$
5,637
7,000
SUPPLEMENTARY INFORMATION – GENERAL CAPITAL FUND
EXHIBIT
C-2
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF CASH AND CASH EQUIVALENTS
Ref.
Balance, June 30, 2013
C
Balance, June 30, 2014
C
84
$
84
$
1/2
EXHIBIT
C-3
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
ANALYSIS OF CASH AND CASH EQUIVALENTS
Balance
Cash
Cash
Transfers
Improvement Authorizations
Ref.
June 30, 2013
Receipts
Disbursements
To
From
Fund Balance
C-1
17,241
$
-
$
-
$
-
$
-
$
Capital Improvement Fund
C-6
11,763
-
-
300,000
-
Encumbrances Payable
C-13
2,813,867
-
-
3,513,496
2,813,867
Due from Current Fund
C-14
(1,281,613)
-
-
6,677,466
3,006,883
Due from State of New Jersey:
Green Acres
C-16
(590,143)
-
-
590,143
-
Green Trust
C-17
(1,370,143)
-
-
590,143
-
Due from County of Hudson
C-18
(790,000)
-
-
765,000
-
Reserve for General Serial Bonds
C-19
-
-
-
761,597
761,597
Due to Other Trust Fund
C-20
18,090
-
-
-
-
Improvement Authorizations:
Improvement to Ellisworth Park
(4,824)
-
-
-
-
Redevelopment Funding
-
-
-
-
-
Traffic Lights
83,912
-
-
-
20,417
Various Capital Improvements
-
-
-
-
-
17th Street Park
11,074
-
-
-
4,651
Reconstruction of 15th St. Library into a Museum
and Cultural Center
-
-
-
-
-
Traffic Light Improvements
-
-
-
-
-
Construction of Doric Water Park
-
-
-
-
-
Reconstruction of Roof at Jose Marti Park
5,690
-
-
-
880
Street Improvements - Broadway and Park Avenue
37,506
-
-
-
-
Indian Park Pond - 33rd Street
-
-
-
-
-
Reconstruct New York Ave
2,407
-
-
-
550
Ellsworth Park Improvement
284,749
-
-
-
250,412
Reconstruct 34th Street
-
-
-
-
-
44th and 45th St Park Improvements
-
-
-
-
-
Leggerio Park Improvements
118,497
-
-
-
4,871
Traffic Signals and Sidewalks
56,464
-
-
-
-
Improvement Authorizations (Continued):
34,337
-
-
1,857
-
4,810
37,506
(4,824)
(25,000)
-
-
-
(780,000)
18,090
-
-
Balance
June 30, 2014
311,763
17,241
$
-
63,495
3,513,496
-
6,423
2,388,970
113,626
56,464
2/2
EXHIBIT
C-3
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
ANALYSIS OF CASH AND CASH EQUIVALENTS
Balance
Cash
Cash
Transfers
Improvement Authorizations
Ref.
June 30, 2013
Receipts
Disbursements
To
From
Balance
June 30, 2014
Pave Bergenline Avenue
-
$
-
$
-
$
992,000
$
992,000
$
Various Police Equipment
1,007,128
-
-
-
-
Improvments to City Parks
41,924
-
-
-
30,491
Reconstruct 15th Street
-
-
-
-
-
Installation of Computer Equipment
4,997
-
-
-
707
Summit Avenue
55,967
-
-
-
843
Purchase of 2 Ambulances
-
-
-
-
-
Supplemental Funding - Amphitheater
-
-
-
-
-
New York Avenue Reconstruction
-
-
-
-
-
Washington Park
1,293,726
-
-
-
5,917,210
Reconstruction Various Streets
(252,056)
-
-
-
343,482
Leggeiro Music Park Improvements
354,578
-
-
-
40,983
Various Capital Improvements
(1,930,717)
-
-
-
1
84
$
-
$
-
$
14,189,845
$
14,189,845
$
Ref.
C
contra
contra
-
-
4,290
55,124
C
84
$
-
$
1,007,128
11,433
-
313,595
(1,930,718)
(4,623,484)
(595,538)
-
EXHIBIT
C-4
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
Bond
Balance
Anticipation
Purpose
June 30, 2013
Notes
Ellisworth Park Improvements
4,824
$
-
$
17th Street Park
330,000
-
Traffic Light Improvements
687,700
28,297
24th Street Park Improvements
423,360
17,640
Construction of New Parking Deck
1,514,026
60,159
Construction of Doric Water Park
5,476,506
224,595
Construction of 39th Street Skate Park
257,852
12,032
Reconstruction of Roof at Jose Marti Park
80,436
4,011
Street Improvements - Broadway and Park Ave.
2,478,120
100,266
Reconstruct New York Ave
2,579,250
-
Ellsworth Park Improvement
2,579,250
-
Reconstruct 34th Street
237,500
-
44th and 45th St Park Improvements
109,250
-
DPW Roof Reconstruction
313,500
-
Leggerio Park Improvements
655,500
-
Traffic Signals and Sidewalks
247,000
-
Pave Bergenline Avenue
80,750
-
Various Police Equipment
1,045,000
-
Reconstruct Ambulance Building Roof
133,000
-
Improvments to City Parks
270,750
-
Reconstruct 15th Street
318,250
-
Reconstruct 16th Street
156,000
-
Installation of Computer Equipment
95,000
-
Tax Refunding Ordinance
440,000
110,000
Summit Avenue
500,000
250,000
Supplemental Funding - Amphitheater
627,000
-
Washington Park
4,959,000
-
Reconstruction Various Streets
950,000
-
Various Capital Improvements
1,940,000
-
29,488,824
$
807,000
$
Ref.
C
C-12
28,681,824
$
C
405,720
2,377,854
1,453,867
76,425
5,251,911
245,820
250,000
Balance
June 30, 2014
659,403
4,824
$
330,000
2,579,250
237,500
109,250
313,500
655,500
247,000
318,250
80,750
1,045,000
133,000
1,940,000
627,000
2,579,250
156,000
95,000
330,000
270,750
4,959,000
950,000
EXHIBIT
C-5
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - FUNDED
Ref.
Balance, June 30, 2013
C
Increased by:
HCIA Leases
C-10
4,609,412
$
Green Acres Loan Correction
C-11
590,143
Decreased by:
General Serial Bonds Payment
C-8
2,638,107
School Serial Bonds Payment
C-9
2,320,000
HCIA Lease Payment
C-10
438,852
Green Acres Loan Payment
C-11
130,496
Balance, June 30, 2014
C
5,527,455
56,667,280
$
56,995,180
$
62,194,735
5,199,555
EXHIBIT
C-6
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF CAPITAL IMPROVEMENT FUND
Ref.
Balance, June 30, 2013
C
Increased by:
2014 Budget Appropriation
C-14
Balance, June 30, 2014
C
311,763
$
300,000
11,763
$
EXHIBIT
C-7
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
Original
Balance, June 30, 2013
Paid or
(Cancelled)/
Balance, June 30, 2014
Improvement Description
Amount
Funded
Unfunded
Charged
Reappropriated
Funded
Traffic Lights
2,000,000
$
-
$
83,912
$
20,417
$
-
$
-
$
17th Street Park
610,000
-
11,074
4,651
-
-
Reconstruction of Roof at Jose Marti Park
90,000
-
5,690
880
-
-
Street Improvements - Broadway and Park Avenue
2,782,000
-
37,506
-
-
-
Reconstruct New York Ave
2,715,000
-
2,407
550
-
-
Ellsworth Park Improvement
2,715,000
-
284,749
250,412
-
-
Leggerio Park Improvements
690,000
-
118,497
4,871
-
-
Traffic Signals and Sidewalks
260,000
-
56,464
-
-
-
Various Police Equipment
1,100,000
-
1,007,128
-
-
-
Improvments to City Parks
285,000
-
41,924
30,491
-
-
Installation of Computer Equipment
100,000
-
4,997
707
-
-
Summit Avenue
750,000
-
55,967
843
-
-
Pave Bergenline Avenue
992,000
-
-
992,000
992,000
-
Washington Park
5,508,000
1,293,726
4,959,000
4,925,210
(992,000)
-
Reconstruction Various Streets
1,000,000
-
697,944
343,482
-
-
Leggeiro Music Park Improvements
1,470,286
354,578
-
40,983
-
313,595
Various Capital Improvements
1,940,000
9,283
-
1
-
9,282
1,657,587
$
7,367,259
$
6,615,498
$
-
$
322,877
$
Ref.
C
C
Below
C
Paid by Current Fund
C-14
5,915,869
$
Encumbrances Payable
C-13
3,513,496
Encumbrances Payable - Prior Year Reversals
C-13
(2,813,867)
Above
6,615,498
$
Unfunded
63,495
$
6,423
37,506
4,810
1,857
34,337
113,626
56,464
1,007,128
11,433
4,290
55,124
2,086,471
$
C
354,462
-
-
335,516
-
1/2
EXHIBIT
C-8
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF GENERAL SERIAL BONDS
Maturities of
Bonds Outstanding
Date of
Original
June 30, 2014
Interest
Balance
Purpose
Issue
Amount
Date
Amount
Rate %
June 30, 2013
Decrease
ERI Pension Bonds
12/15/02
15,735,000
$
1/1/2015
665,000
$
5.375
1/1/2016
725,000
5.375
1/1/2017
825,000
5.375
1/1/2018
15,000
6.250
1/1/2019
30,000
6.250
1/1/2020
100,000
6.250
1/1/2021
165,000
6.250
1/1/2022
225,000
6.250
1/1/2023
315,000
6.250
1/1/2024
375,000
6.250
1/1/2025
475,000
6.250
1/1/2026
575,000
6.250
1/1/2027
690,000
6.250
1/1/2028
825,000
6.250
1/1/2029
975,000
6.250
1/1/2030
1,125,000
6.250
1/1/2031
1,300,000
6.250
1/1/2032
1,475,000
6.250
1/1/2033
1,695,000
6.250
13,160,000
$
585,000
$
2007A Refunding
02/07/07
24,305,000
11/1/2017
145,000
4.000
11/1/2018
3,730,000
5.000
11/1/2019
3,845,000
5.000
11/1/2020
3,985,000
5.000
11/1/2021
4,125,000
4.000
11/1/2022
4,225,000
4.125
11/1/2023
4,250,000
4.125
24,305,000
-
Balance
June 30, 2014
12,575,000
$
24,305,000
2/2
EXHIBIT
C-8
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF GENERAL SERIAL BONDS
Maturities of
Bonds Outstanding
Date of
Original
June 30, 2014
Interest
Balance
Purpose
Issue
Amount
Date
Amount
Rate %
June 30, 2013
Decrease
Balance
June 30, 2014
2007B Refunding
02/07/07
9,325,000
11/1/2013
2,053,106
$
5.430
11/1/2014
1,917,108
5.470
11/1/2015
1,796,251
5.520
11/1/2016
1,630,109
5.560
11/1/2017
1,928,425
5.590
9,324,999
$
2,053,107
$
46,789,999
$
2,638,107
$
Ref.
C
C-5
C
44,151,892
$
7,271,892
$
EXHIBIT
C-9
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF SCHOOL SERIAL BONDS
Maturities of
Original
Bonds Outstanding
Date of
Issue
June 30, 2014
Interest
Balance
Purpose
Issue
Amount
Date
Amount
Rate %
June 30, 2013
Decrease
School Improvements
3/19/1992
26,975,000
$
2,320,000
$
2,320,000
$
2,320,000
$
2,320,000
$
Ref.
C
C-5
C
Balance
June 30, 2014
-
$
-
$
EXHIBIT C-10
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF CAPITAL LEASE PAYABLE - HCIA
Ref.
Balance, June 30, 2013
C
6,709,059
$
Increased by:
HCIA Leases
C-5
4,609,412
11,318,471
Decreased by:
Loan Payment
C-5
438,852
Balance, June 30, 2014
C
10,879,619
$
Fiscal
Cost of Facilities
NHRFR
Year
Series 2004
2006 Series A
2006 Series B
2011 Series A
2011 Series B
Total
2015
250,875
$
83,625
$
75,263
$
107,040
$
227,460
$
744,263
$
2016
267,600
86,970
78,608
113,730
244,185
791,093
2017
367,950
91,987
81,953
120,420
262,583
924,893
2018
401,400
95,333
86,970
127,110
284,325
995,138
2019
418,125
98,677
91,988
133,800
307,740
1,050,330
2020
451,575
103,695
97,005
142,163
331,155
1,125,593
2021
468,300
107,040
102,023
148,853
357,915
1,184,131
2022
501,750
112,057
107,040
157,215
386,348
1,264,410
2023
535,200
117,075
112,058
167,250
416,453
1,348,036
2024
585,375
122,093
118,748
175,613
449,903
1,451,732
4,248,150
$
1,018,552
$
951,656
$
1,393,194
$
3,268,067
$
10,879,619
$
Analysis of Capital Lease Payments
Regional Fire and Rescue
Fire Dept Equipment NHRFR
EXHIBIT C-11
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF GREEN ACRES LOANS PAYABLE
Ref.
Balance, June 30, 2013
C
Increased by:
2014 Green Acres Loan Received
C-5
Decreased by:
Loan Payment
C-5
Balance, June 30, 2014
C
Fiscal
Year
Interest
2015
26,151
$
2016
29,003
2017
25,813
2018
23,102
2019
21,577
2020
20,186
2021
18,767
2022
17,320
2023
15,842
2024
14,335
2025
12,798
2026
11,231
2027
9,632
2028
7,999
2029
6,336
2030
4,638
2031
2,906
2032
1,954
2033
1,256
2034
543
271,389
$
74,955
1,635,769
$
78,550
76,462
77,997
79,566
69,218
70,610
72,030
73,479
81,165
82,797
84,461
86,158
36,154
1,176,122
$
1,635,769
$
130,496
590,143
Principal
145,565
$
161,064
60,840
34,743
35,441
154,513
1,766,265
Analysis of Repayment of Loan and Interest
1/3
EXHIBIT C-12
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF BOND ANTICIPATION NOTES
Original
Issue
Date of
Interest
Balance
Improvement Description
Amount
Issue
Maturity
Rate %
June 30, 2013
Increase
Decrease
Traffic Light Improvements
772,000
$
12/19/12
12/20/13
1.125
687,700
$
-
$
687,700
$
24th Street Park Improvements
475,000
12/19/12
12/20/13
1.125
423,360
-
423,360
Construction of New Parking Deck
1,700,000
12/19/12
12/20/13
1.125
1,514,026
-
1,514,026
Construction of Doric Water Park
6,150,000
12/19/12
12/20/13
1.125
5,476,506
-
5,476,506
Reconstruction of 39th Street Skate Park
290,000
12/19/12
12/20/13
1.125
257,852
-
257,852
Reconstruction of roof at Jose Marti Park
90,000
12/19/12
12/20/13
1.125
80,436
-
80,436
Street Improvements - Broadway and Park Avenue
2,782,000
12/19/12
12/20/13
1.125
2,478,120
-
2,478,120
Supplemental Funding Amphitheater
627,000
06/05/12
06/05/13
1.125
627,000
-
627,000
17th Street Park
330,000
05/22/13
05/23/14
1.00
330,000
-
330,000
Summit Avenue
750,000
05/22/13
05/23/14
1.00
500,000
-
500,000
Reconstruct New York Ave
2,579,250
05/22/13
05/23/14
1.00
2,579,250
-
2,579,250
Ellsworth Park Improvement
2,579,250
05/22/13
05/23/14
1.00
2,579,250
-
2,579,250
Reconstruct 34th Street
237,500
05/22/13
05/23/14
1.00
237,500
-
237,500
44th and 45th St Park Improvements
109,250
05/22/13
05/23/14
1.00
109,250
-
109,250
DPW Roof Reconstruction
313,500
05/22/13
05/23/14
1.00
313,500
-
313,500
Leggerio Park Improvements
655,500
05/22/13
05/23/14
1.00
655,500
-
655,500
Traffic Signals, Sidewalks
247,000
05/22/13
05/23/14
1.00
247,000
-
247,000
Pave Bergenline Avenue
80,750
05/22/13
05/23/14
1.00
80,750
-
80,750
Various Equipment Police
1,045,000
05/22/13
05/23/14
1.00
1,045,000
-
1,045,000
Reconstruct Roof Amb Building
133,000
05/22/13
05/23/14
1.00
133,000
-
133,000
Improvments to City Parks
270,750
05/22/13
05/23/14
1.00
270,750
-
270,750
Reconstruct 15th Street
318,250
05/22/13
05/23/14
1.00
318,250
-
318,250
Reconstruct 16th Street
156,750
05/22/13
05/23/14
1.00
156,000
-
156,000
-
-
-
-
-
-
-
-
-
-
-
-
-
Balance
June 30, 2014
-
-
-
-
$
-
-
-
-
-
-
2/3
EXHIBIT C-12
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF BOND ANTICIPATION NOTES
Original
Issue
Date of
Interest
Balance
Improvement Description
Amount
Issue
Maturity
Rate %
June 30, 2013
Increase
Decrease
Balance
June 30, 2014
Installation of Computer Equipment
95,000
05/22/13
05/23/14
1.00
95,000
$
-
$
95,000
$
Tax Refunding Ordinance
550,000
05/22/13
05/23/14
1.00
440,000
-
440,000
Traffic Light Improvements
772,000
12/10/13
12/10/14
1.00
-
659,403
-
24th Street Park Improvements
475,000
12/10/13
12/10/14
1.00
-
405,720
-
Construction of New Parking Deck
1,700,000
12/10/13
12/10/14
1.00
-
1,453,867
-
Construction of Doric Water Park
6,150,000
12/10/13
12/10/14
1.00
-
5,251,911
-
Reconstruction of 39th Street Skate Park
290,000
12/10/13
12/10/14
1.00
-
245,820
-
Reconstruction of roof at Jose Marti Park
90,000
12/10/13
12/10/14
1.00
-
76,425
-
Street Improvements - Broadway and Park Avenue
2,782,000
12/10/13
12/10/14
1.00
-
2,377,854
-
Supplemental Funding Amphitheater
627,000
12/10/13
12/10/14
1.00
-
627,000
-
17th Street Park
330,000
05/13/14
05/13/15
1.00
-
330,000
-
Summit Avenue
750,000
05/13/14
05/13/15
1.00
-
250,000
-
Reconstruct New York Ave
2,579,250
05/13/14
05/13/15
1.00
-
2,579,250
-
Ellsworth Park Improvement
2,579,250
05/13/14
05/13/15
1.00
-
2,579,250
-
Reconstruct 34th Street
237,500
05/13/14
05/13/15
1.00
-
237,500
-
44th and 45th St Park Improvements
109,250
05/13/14
05/13/15
1.00
-
109,250
-
DPW Roof Reconstruction
313,500
05/13/14
05/13/15
1.00
-
313,500
-
Leggerio Park Improvements
655,500
05/13/14
05/13/15
1.00
-
655,500
-
Traffic Signals, Sidewalks
247,000
05/13/14
05/13/15
1.00
-
247,000
-
Pave Bergenline Avenue
80,750
05/13/14
05/13/15
1.00
-
80,750
-
Various Equipment Police
1,045,000
05/13/14
05/13/15
1.00
-
1,045,000
-
Reconstruct Roof Amb Building
133,000
05/13/14
05/13/15
1.00
-
133,000
-
245,820
-
$
-
405,720
1,453,867
5,251,911
659,403
250,000
76,425
2,377,854
627,000
330,000
80,750
1,045,000
133,000
2,579,250
2,579,250
237,500
109,250
313,500
655,500
247,000
3/3
EXHIBIT C-12
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF BOND ANTICIPATION NOTES
Original
Issue
Date of
Interest
Balance
Improvement Description
Amount
Issue
Maturity
Rate %
June 30, 2013
Increase
Decrease
Balance
June 30, 2014
Improvments to City Parks
270,750
05/13/14
05/13/15
1.00
-
$
270,750
$
-
$
Reconstruct 15th Street
318,250
05/13/14
05/13/15
1.00
-
318,250
-
Reconstruct 16th Street
156,750
05/13/14
05/13/15
1.00
-
156,000
-
Installation of Computer Equipment
95,000
05/13/14
05/13/15
1.00
-
95,000
-
Tax Refunding Ordinance
550,000
05/13/14
05/13/15
1.00
-
330,000
-
21,635,000
$
20,828,000
$
21,635,000
$
Ref.
C
Below
Below
Contra
20,828,000
$
20,828,000
$
Deferred Charges to Future Taxation - Unfunded
C-4
-
807,000
Above
20,828,000
$
21,635,000
$
95,000
20,828,000
$
C
330,000
270,750
$
318,250
156,000
EXHIBIT C-13
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF ENCUMBRANCES PAYABLE
Ref.
Balance, June 30, 2013
C
Increased by:
Charges to Improvement Authorizations
C-7
Decreased by:
Reverse Prior Year Balance
C-7
Balance, June 30, 2014
C
3,513,496
$
3,513,496
6,327,363
2,813,867
$
2,813,867
EXHIBIT C-14
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF DUE FROM/(TO) CURRENT FUND
Ref.
Balance, June 30, 2013 (Due From)
C
Increased by:
Return of Escrow Funds
C-19
761,597
$
Due from Hudson County
C-18
765,000
Due from Green Acres Trust Loan
C-16
590,143
Due from Green Acres Trust Grant
C-17
590,143
Capital Improvement Fund
C-6
300,000
Decreased by:
Charges to Improvement Authorizations
C-7
5,915,869
Reserve for General Serial Bonds
C-19
761,597
Balance, June 30, 2014 (Due To)
C
1,281,613
$
3,006,883
(2,388,970)
$
6,677,466
4,288,496
EXHIBIT C-15
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Balance
Improvement Description
June 30, 2013
Improvement to Ellisworth Park
4,824
$
Washington Park
4,959,000
Reconstruction Various Streets
950,000
Various Capital Improvements
1,940,000
7,853,824
$
Ref.
C
1,940,000
4,959,000
950,000
Balance
June 30, 2014
4,824
$
C
7,853,824
$
EXHIBIT C-16
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF DUE FROM STATE OF NEW JERSEY - GREEN ACRES TRUST LOAN
Ref.
Balance, June 30, 2013
C
Decreased By:
Cash Receipt - Due from Current
C-14
Balance, June 30, 2014
C
EXHIBIT C-17
SCHEDULE OF DUE FROM STATE OF NEW JERSEY - GREEN ACRES TRUST GRANT
Ref.
Balance, June 30, 2013
C
Decreased By:
Cash Receipt - Due from Current
C-14
Balance, June 30, 2014
C
-
$
590,143
$
590,143
780,000
$
1,370,143
$
590,143
EXHIBIT C-18
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF DUE FROM COUNTY OF HUDSON
Balance
Due from
June 30, 2013
Current
Open Space Grant:
Washington Park
500,000
$
500,000
$
Leggeiro Park Improvements
265,000
265,000
Community Development Block Grant -
Leggeiro Park Improvements
25,000
790,000
$
765,000
$
Ref.
C
C-14
Balance
June 30, 2014
-
$
C
25,000
25,000
$
-
EXHIBIT C-19
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF RESERVE FOR GENERAL SERIAL BONDS
Anticipated
Bond Proceeds
Balance
Revenue Realized
Due from
June 30, 2013
in Current Fund
Current Fund
2007 Refunding Serial Bonds -
Swimming Pool Improvement (47th St.)
-
$
761,597
$
761,597
$
-
$
761,597
$
761,597
$
Ref.
C
C-14
C-14
-
$
C
-
$
Balance
June 30, 2014
EXHIBIT C-20
THE CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF DUE TO OTHER TRUST FUND
Ref.
Balance, June 30, 2013
C
Balance, June 30, 2014
C
18,090
$
18,090
$
SUPPLEMENTARY INFORMATION – FIXED ASSETS
EXHIBIT D-1
THE CITY OF UNION CITY
FIXED ASSET GROUP OF ACCOUNTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF FIXED ASSETS - ACQUISITIONS AND DISPOSALS
Balance
June 30, 2013
Balance
As Restated
Additions
Deletions
June 30, 2014
Land
11,228,900
$
-
$
-
$
11,228,900
$
Buildings and Improvements
47,682,641
1,692,211
-
49,374,852
Furniture and Fixtures
69,871
-
-
69,871
Machinery and Equipment
7,527,051
207,545
-
7,734,596
66,508,463
$
1,899,756
$
-
$
68,408,219
$
Ref.
D
D-2
D-2
D
EXHIBIT D-2
THE CITY OF UNION CITY
FIXED ASSET GROUP OF ACCOUNTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
SCHEDULE OF RESERVE FOR FIXED ASSETS
Ref.
Balance, June 30, 2013 As Restated
D
66,508,463
$
Increased by:
Additions
D-1
1,899,756
68,408,219
Decreased by:
Deletions
D-1
-
Balance, June 30, 2014
D
68,408,219
$
ACCOMPANYING INFORMATION
THE CITY OF UNION CITY
SCHEDULE OF OPERATIONS AND CHANGES IN FUND BALANCE
FOR THE FISCAL YEARS ENDED JUNE 30, 2014 AND 2013
June 30, 2014
June 30, 2013
Amount
Percent
Amount
Percent
Revenue and Other Income Realized:
Miscellaneous Revenue Anticipated
45,268,974
$
30.77%
47,022,783
$
31.99%
Receipts from Delinquent Taxes
74,121
0.05%
108,729
0.07%
Receipts from Current Taxes
99,643,523
67.72%
96,428,494
65.59%
Other Credits to Income
2,144,474
1.46%
3,444,689
2.34%
Total Income
147,131,092
100.00%
147,004,695
99.99%
Expenditures:
Budget Appropriations
111,626,821
76.13%
111,512,374
75.94%
School and County Taxes
31,831,815
21.71%
33,528,242
22.83%
Other
3,173,413
2.16%
1,808,341
1.23%
Total Expenditures
146,632,049
100.00%
146,848,957
100.00%
Excess in Revenue
499,043
155,738
(Deficit) in Revenue
Adjustments to Income before Fund Balance:
Expenditures Included Above Which are by Statute
Deferred Charges to Budget of Succeeding Year
Expenditures without Appropriations
14,000
18,782
Overexpenditure of Appropriation Reserves
208,214
-
Overexpenditure of Grants
17,477
-
Interfund Overexpenditures
-
19,336
239,691
38,118
Statutory Excess to Fund Balance
738,734
193,856
$
Deficit in Operations to be Raised in Budget
of Succeeding Year
Fund Balance, Beginning of Year
2,346,287
2,152,431
FunFund Balance, End of Year
3,085,021
$
2,346,287
$
39
THE CITY OF UNION CITY
SCHEDULE OF TAX RATE INFORMATION
FOR THE LAST FIVE FISCAL YEARS
Local
County
School
Year
Tax Rate
Municipal
Taxes
Taxes
2014
6.624
4.503
1.082
1.039
2013
6.545
4.320
1.124
1.101
2012
6.401
4.137
1.167
1.097
2011
6.189
3.997
1.090
1.102
2010
5.930
3.786
1.039
1.105
40
THE CITY OF UNION CITY
SCHEDULE OF TAX LEVIES AND COLLECTIONS
FOR THE LAST FIVE FISCAL YEARS
Cash
Percent
Year
Tax Levy
Collection
Collected
2014
98,180,964
$
98,178,007
$
99.997%
2013
97,092,453
95,328,494
98.183%
2012
95,065,168
93,847,126
98.719%
2011
90,217,685
88,452,521
98.043%
2010
86,938,593
86,065,314
98.996%
41
THE CITY OF UNION CITY
SCHEDULE OF DELINQUENT TAXES AND TAX TITLE LIENS
FOR THE LAST FIVE FISCAL YEARS
Delinquent
Percent of
Year
Liens
Taxes
Total
Tax Levy
2014
81,018
$
187,172
$
268,190
$
0.27%
2013
56,989
110,490
167,479
0.17%
2012
64,515
96,647
161,162
0.17%
2011
633,478
53,582
687,060
0.76%
2010
40,520
80,913
121,433
0.14%
42
THE CITY OF UNION CITY
SCHEDULE OF PROPERTY ACQUIRED BY TAX TITLE LIEN LIQUIDATION
FOR THE LAST FIVE FISCAL YEARS
Year
Amount
2014
171,900
$
2013
171,900
2012
171,900
2011
171,900
2010
171,900
43
THE CITY OF UNION CITY
SCHEDULE OF FUND BALANCES
FOR THE LAST FIVE FISCAL YEARS
Utilized in
Budget of
Year
Balance
Suceeding Year
June 30, 2014
3,085,021
$
-
$
June 30, 2013
2,346,287
-
June 30, 2012
2,152,431
-
June 30, 2011
2,152,431
1,065,000
June 30, 2010
3,217,431
117,000
44
THE CITY OF UNION CITY
ROSTER OF OFFICIALS
JUNE 30, 2014
Name
Title
Bond
Brian P. Stack
Mayor and Commissioner - Public Safety
Lucio P. Fernandez
Commissioner - Public Affairs
Celine Valdivia
Commissioner - Parks and Public Property
Tilo E. Rivas
Commissioner - Public Works
Maryury A. Martinetti
Commissioner - Revenue and Finance
William Senande
City Clerk (Resigned September 30, 2013)
Laura Miller
Acting City Clerk (October 1, 2013 through January 26, 2014)
Dominick Cantatore
Acting City Clerk (Effective January 27, 2014)
Donald Scarinci
Corporation Counsel
Sonia Schulman
Tax Collector
1,000,000
$
Lilia A. Munoz
Judge
1,000,000
$
Sixto L. Macias
Judge
1,000,000
$
Gustav John Schlaier
Court Director
1,000,000
$
Douglas Gutch
Treasurer
1,000,000
$
Richard P. Cahill
Chief Financial Officer (Resigned August 31, 2013)
1,000,000
$
Margaret S. Cherone
Acting Chief Financial Officer (September 1, 2013 through March 31, 2014)
1,000,000
$
Susan M. Colditz
Acting Chief Financial Officer (Effective April 1, 2014)
1,000,000
$
There was a Public Employees Dishonesty Blanket Position Bond with individual coverage of $1,000,000 for all employees,
issued by Fidelity and Deposit Company of Maryland.
45
(This Page Intentionally Left Blank)
SINGLE AUDIT SECTION
DONOHUE, GIRONDA & DORIA
Certified Public Accountants
310 Broadway
Bayonne, NJ 07002
(201) 437-9000
Fax: (201) 437-1432
E-Mail: dgd@dgdcpas.com
Matthew A. Donohue, CPA
Linda P. Kish, CPA, RMA
Robert A. Gironda, CPA
Tammy L. Zucca, CPA, RMA
Robert G. Doria, CPA (N.J. & N.Y.)
Mark W. Bednarz, CPA, RMA
Frederick J. Tomkins, CPA, RMA
Jason R. Gironda, CPA
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 Board of Commissioners
City of Union City, New Jersey
We have audited , in accordance with the auditing standards generally accepted in the United
States of America, the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, and audit requirements
prescribed by the Division of Local Government Services, Department of Community Affairs,
State of New Jersey (the “Division”), the accompanying financial statements – regulatory basis
of the City of Union City, New Jersey (the “City”), which comprise the comparative balance
sheet – regulatory basis, of each fund and account group as of June 30, 2014 and 2013, and the
related comparative statement of operations and changes in fund balance – regulatory basis, of
each fund, and the statement of revenues – regulatory basis – and statement of appropriations –
regulatory basis, of the Current Fund, for the years then ended, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements and have
issued our report thereon dated April 8, 2015.
As described in Note A, the City prepares its financial statements on a basis of accounting
prescribed by the Division 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
accounting principles generally accepted in the United States of America.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s
internal control over financial reporting (internal control) to determine the audit procedures that
are appropriate in the circumstances for the purposes of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion of the effectiveness of the City’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s
internal control.
46
Our consideration of internal control was for the limited purpose described in the preceding
paragraph of this section and was not designed to identify all deficiencies in internal control that
might be material weaknesses or significant deficiencies and therefore, material weaknesses or
significant deficiencies may exist that were not identified. However, as described in the
accompanying schedule of findings and questioned costs, we identified certain deficiencies in
internal control that we consider to be material weaknesses.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control such that there is a reasonable
possibility that a material misstatement of the entity’s financial statements will not be prevented,
or detected and corrected on a timely basis. We consider the deficiencies described in the
accompanying schedule of findings and questioned costs, Findings FS14-01 and FS14-02, to be
material weaknesses.
A significant deficiency is a deficiency, or 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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free
of 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.
We noted additional instances of deficiencies and noncompliance which are required to be
reported under audit requirements prescribed by the Division, and which are described in the
accompanying comments and recommendations section of this report.
The City’s Response to Findings
The City’s response to the findings identified in our audit is described in the accompanying
schedule of findings and questioned costs. The City’s response was not subjected to the auditing
procedures applied in the audit of the financial statements and, accordingly, we express no
opinion on it.
47
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity’s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity’s
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
DONOHUE, GIRONDA & DORIA
Certified Public Accountants
FREDERICK J. TOMKINS
Registered Municipal Accountant #327
Bayonne, New Jersey
April 8, 2015
48
DONOHUE, GIRONDA & DORIA
Certified Public Accountants
310 Broadway
Bayonne, NJ 07002
(201) 437-9000
Fax: (201) 437-1432
E-Mail: dgd@dgdcpas.com
Matthew A. Donohue, CPA
Linda P. Kish, CPA, RMA
Robert A. Gironda, CPA
Tammy L. Zucca, CPA, RMA
Robert G. Doria, CPA (N.J. & N.Y.)
Mark W. Bednarz, CPA, RMA
Frederick J. Tomkins, CPA, RMA
Jason R. Gironda, CPA
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE
FOR EACH MAJOR FEDERAL AND STATE PROGRAM AND
ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY
OMB CIRCULAR A-133 AND NEW JERSEY OMB CIRCULAR 04-04
The Honorable Mayor and
Members of the Board of Commissioners
City of Union City, New Jersey
Report on Compliance for Each Major Federal and State Program
We have audited the City of Union City, New Jersey’s (the City’s) compliance with the types of
compliance requirements described in the U.S. OMB Circular A-133 Compliance Supplement
and the N.J. OMB State Grant Compliance Supplement that could have a direct and material
effect on each of the City’s major federal and state programs for the year ended June 30, 2014.
The City’s major federal and state programs are identified in the summary of auditor’s results
section of the accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts
and grants applicable to its federal and state programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the City’s major federal
and state programs based on our audit of the types of compliance requirements referred to above.
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; U.S.
OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and
N.J. OMB Circular 04-04, Single Audit Policy for Recipients of Federal Grants, State Grants
and State Aid. Those standards, U.S. OMB Circular A-133 and N.J. OMB Circular 04-04
require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a
direct and material effect on a major federal or state program occurred. An audit includes
49
examining, on a test basis, evidence about the City’s compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each
major federal and state program. However, our audit does not provide a legal determination of
the City’s compliance.
Opinion on Each Major Federal and State Program
In our opinion, the City complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major
federal and state programs for the year ended June 30, 2014.
Other Matters
The results of our auditing procedures disclosed instances of noncompliance, which are required
to be reported in accordance with OMB Circular A-133 and NJ OMB Circular 04-04 and which
are described in the accompanying schedule of findings and questioned costs as Findings SA14-
01 through SA14-05 Our opinion on each major federal and state program is not modified with
respect to these matters.
The City’s response to the noncompliance findings identified in our audit are described in the
accompanying schedule of findings and questioned costs. The City’s response was not subjected
to the auditing procedures applied in the audit of compliance and, accordingly, we express no
opinion on the response.
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control
over compliance with the types of compliance requirements referred to above. In planning and
performing our audit of compliance, we considered the City’s internal control over compliance
with the types of requirements that could have a direct and material effect on a major federal and
state program to determine the auditing procedures that are appropriate in the circumstances for
the purpose of expressing our opinion on compliance for each major federal and state program
and to test and report on internal control over compliance in accordance with U.S. OMB Circular
A-133 and N.J. OMB Circular 04-04, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on
the effectiveness of the City’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal or state program on a timely basis. A material weakness in
internal control over compliance is a deficiency, or combination of deficiencies, in internal
control over compliance, such that there is a reasonable possibility that material noncompliance
with a type of compliance requirement of a federal program will not be prevented, or detected
and corrected, on a timely basis. A significant deficiency in internal control over compliance is a
50
deficiency, or a combination of deficiencies, in internal control over compliance with a type of
compliance requirement of a federal or state program that is less severe than a material weakness
in internal control over compliance, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies and
therefore, material weaknesses or significant deficiencies may exist that were not identified.
However, we identified certain deficiencies in internal control over compliance, as described in
the accompanying schedule of findings and questioned costs as items SA14-01 through SA14-
05, that we consider to be material weaknesses.
The City’s response to the internal control over compliance findings identified in our audit are
described in the accompanying schedule of findings and questioned costs. The City’s response
was not subjected to the auditing procedures applied in the audit of compliance and, accordingly,
we express no opinion on the response.
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of U.S. OMB Circular A-133 and N.J. OMB Circular 04-04. Accordingly, this
report is not suitable for any other purpose.
DONOHUE, GIRONDA & DORIA
Certified Public Accountants
FREDERICK J. TOMKINS
Registered Municipal Accountant #327
Bayonne, New Jersey
April 8, 2015
51
See Accompanying Notes to Schedules of Expenditures of Awards and Financial Assistance
SCHEDULE 1
THE CITY OF UNION CITY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
Program
Program Income/
Federal
Amount/
Current Year
Reprogrammed/
State Account Number/
CFDA
Grant Period
Funds
Funds Available
Current Year
Disbursements
Cancellations/
Funds Available
Cumulative
Federal Department and Program
Grant Number
Number
From
To
Grant Award
Received
June 30, 2013
Appropriations
and Charges
Transfers
June 30, 2014
Expenditures
U.S. Department of Agriculture:
Passed through State of NJ Department of Agriculture:
**
Summer Food Program
10-3350-100-033(034)
10.559
07/01/13
06/30/14
151,770
$
40,433
$
-
$
151,770
$
138,189
$
-
$
13,581
$
138,189
$
Total U.S. Department of Agriculture
40,433
-
151,770
138,189
-
13,581
U.S. Department of Housing and Urban Development:
Passed through the County of Hudson:
Community Development Block Grant:
Leggerio Park Improvements
*
14.218
07/01/13
06/30/14
25,000
-
25,000
-
-
-
25,000
-
** Community Development Block Grant
B-13-MC-34-0119
14.218
07/01/13
06/30/14
1,057,585
1,010,349
-
1,057,585
913,493
27,197
171,289
886,296
** Community Development Block Grant
B-12-MC-34-0119
14.218
07/01/12
06/30/13
1,269,275
81,210
-
-
-
-
-
1,269,275
Total U.S. Department of Housing and Urban Development
1,091,559
25,000
1,057,585
913,493
27,197
196,289
U.S. Department of Justice:
Bulletproof Vest Partnership Program
2012BUBX12060891
16.607
06/01/11
06/30/12
22,117
6,338
-
-
-
-
-
21,170
Community Oriented Policing Services (COPS) -
Secure Our Schools
2010CKWX0724
16.710
06/01/10
06/30/11
152,841
-
152,841
-
-
-
152,841
-
Law Technology Project
2010CKWX0054
16.710
06/01/10
06/30/11
300,000
38,400
151,223
-
250
-
150,973
149,027
**
ARRA - Hiring Recovery Program
2009RKWX0629
16.710
06/01/09
11/30/10
2,209,264
1,072,103
609,993
-
402,112
-
207,881
2,001,383
Total Community Oriented Policing Services (COPS)
1,110,503
914,057
-
402,362
-
511,695
Passed through State of NJ Department of Law and Public Safety:
Passed through the County of Hudson:
Edward Byrne Memorial Justice Assistance Grant Program
100-066-1020-157
16.738
01/01/14
12/31/14
27,424
-
-
27,424
21,171
-
6,253
21,171
Edward Byrne Memorial Justice Assistance Grant Program
100-066-1020-157
16.738
01/01/13
12/31/13
30,851
-
6,456
-
1,793
-
4,663
26,188
Total Edward Byrne Memorial Justice Assistance Grant Program
-
6,456
27,424
22,964
-
10,916
Total U.S. Department of Justice
1,116,841
920,513
27,424
425,326
-
522,611
U.S. Department of Transportation:
Passed through State of NJ Department of Transportation:
Highway Planning and Construction -
Local Municipal Aid -
West Street - Phase II
78-630-480-AK
20.205
07/01/11
06/30/12
281,322
-
61,172
-
-
(61,172)
-
220,150
Metropolitan Planning Organization -
Mountain Road
78-6300-480-***
20.205
07/01/11
06/30/12
280,800
-
20,897
-
1,508
(13,800)
5,589
261,411
Total Highway Planning and Construction
-
82,069
-
1,508
(74,972)
5,589
Passed through State of NJ Division of Highway Traffic Safety:
Click-it or Ticket
66-1160-100-113
20.602
05/19/14
06/01/14
4,000
-
-
4,000
4,000
-
-
4,000
2014 Distracted Driving Crackdown
PT-14-03-02-DD-52
20.616
04/01/14
04/21/14
5,000
-
-
5,000
5,000
-
-
5,000
Total Pass through State of NJ Division of Highway Traffic Safety
-
-
9,000
9,000
-
-
Total U.S. Department of Transportation
-
82,069
9,000
10,508
(74,972)
5,589
U.S. Department of Energy:
ARRA - Energy Efficiency & Conservation Block Grant
DE-FOA-0000013
81.128
07/01/09
06/30/10
521,600
44,253
73,709
-
-
-
73,709
447,891
Total U.S. Department of Energy
44,253
73,709
-
-
-
73,709
U.S. Department of Health and Human Services:
Substance Abuse and Mental Health Administration:
Strengthening Union City Families
1U79SM060322-01
93.243
09/30/11
09/29/12
1,363,281
306,499
157,044
-
27,458
-
129,586
1,233,695
Strengthening Union City Families
1U79SM060322-01
93.243
09/30/10
09/29/11
1,379,660
-
153,007
-
16,703
-
136,304
1,243,356
Total U.S. Department of Health and Human Services
306,499
310,051
-
44,161
-
265,890
TOTAL FEDERAL AWARDS
2,599,585
$
1,411,342
$
1,245,779
$
1,531,677
$
(47,775)
$
1,077,669
$
* - Information not available
** - Denotes Major Program
See Accompanying Notes to Schedules of Expenditures of Awards and Financial Assistance
SCHEDULE 2
THE CITY OF UNION CITY
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
Program
Program Income/
Amount/
Current Year
Reprogrammed/
State Account Number/
Grant Period
Funds
Funds Available
Current Year
Disbursements
Cancellation/
Funds Available
Cumulative
State Department and Program
Grant Number
From
To
Grant Award
Received
June 30, 2013
Appropriations
and Charges
Transfers/City Match
June 30, 2014
Expenditures
NJ Department of Environmental Protection:
Clean Communities (Municipality Road Mileage)
42-4900-765-004
07/01/13
06/30/14
78,877
$
-
$
-
$
78,877
$
192
$
-
$
78,685
$
-
$
Total Clean Communities (Municipality Road Mileage)
-
-
78,877
192
-
78,685
Statewide Livable Communities Aid -
Municipal owned Historic Buildings
4875-542-042-4875-001
07/01/04
06/30/05
50,000
-
50,000
-
-
-
50,000
-
Recycling Tonnage
42-4900-752-001
07/01/11
06/30/12
85,221
87,924
66,289
-
-
-
66,289
-
Total Recycling Tonnage
87,924
66,289
-
-
-
66,289
Capital Fund Grant:
Green Acres Trust:
**
Washington Park Improvements
0910-10-003
04/02/13
04/01/15
780,000
-
-
-
780,000
780,000
-
779,973
Total Green Acres Grant
-
-
-
780,000
780,000
-
Total NJ Department of Environmental Protection
87,924
116,289
78,877
780,192
780,000
194,974
NJ Department of Treasury:
NJ Division of Motor Vehicles:
Drunk Driving Enforcement Fund
6400-100-078-6400-000-YYY
07/01/13
06/30/14
15,748
15,748
-
15,748
7,753
-
7,995
7,753
Drunk Driving Enforcement Fund
6400-100-078-6400-000-YYY
07/01/12
06/30/13
13,684
-
7,427
-
7,427
-
-
13,684
Drunk Driving Enforcement Fund
6400-100-078-6400-000-YYY
07/01/12
06/30/13
6,600
-
5,963
-
-
-
5,963
637
Total Drunk Driving Enforcement Fund
15,748
13,390
15,748
15,180
-
13,958
Passed through the County of Hudson:
Municipal Alliance to Prevent Alcoholism and Drug Abuse
100-082-C001-004
07/01/14
06/30/15
57,412
-
-
57,412
-
-
57,412
-
Municipal Alliance to Prevent Alcoholism and Drug Abuse
100-082-C001-004
01/01/14
06/30/14
33,172
-
-
33,172
58,646
25,771
297
58,646
Municipal Alliance to Prevent Alcoholism and Drug Abuse
100-082-C001-004
01/01/13
12/31/13
66,345
49,988
22,891
-
22,720
-
171
66,174
Municipal Alliance to Prevent Alcoholism and Drug Abuse
100-082-C001-004
01/01/12
12/31/12
68,772
-
4,242
-
4,242
-
-
68,772
Total Municipal Alliance to Prevent Alcoholism and Drug Abuse
49,988
27,133
90,584
85,608
25,771
57,880
Total NJ Department of Treasury
65,736
40,523
106,332
100,788
25,771
71,838
NJ Department of Law and Public Safety:
Body Armor Replacement Fund
66-1020-718-001
07/01/12
06/30/13
14,073
13,485
14,073
-
13,485
-
588
13,485
Body Armor Replacement Fund
66-1020-718-001
07/01/11
06/30/12
4,290
4,290
17
-
-
-
17
4,273
Body Armor Replacement Fund
66-1020-718-001
07/01/09
06/30/10
9,284
535
497
-
-
-
497
8,787
Total Body Armor Replacement Fund
18,310
14,587
-
13,485
-
1,102
NJ Division of Highway Traffic Safety:
Pedestrian School Safety
PSF-14-01-18
07/01/13
06/30/14
15,000
-
-
-
14,000
14,000
-
14,000
Pedestrian School Safety
66-1160-100-131
07/01/12
06/30/13
16,000
14,500
-
-
-
-
-
16,000
Total Pedestrian School Safety
14,500
-
-
14,000
14,000
-
NJ Office of Emergency Management:
Emergency Management Grant
07/01/12
06/30/13
5,000
-
-
-
-
-
-
5,000
Total NJ Department of Law and Public Safety
32,810
14,587
-
27,485
14,000
1,102
NJ Department of Transportation:
West Street - Phase II
78-630-480-AK
07/01/11
06/30/12
281,322
-
-
-
13,792
61,172
47,380
295,114
** West Street - Section 3-FY13 Discretionary Aid
13-480-078-6320-ALD-6010
07/01/13
06/30/15
650,000
487,500
-
650,000
485,824
-
164,176
485,824
** West Street - Section 3-FY13 Municipal Aid
13-480-078-6320-ALL-6010
07/01/13
06/30/15
250,000
112,033
-
250,000
250,000
-
-
250,000
** West Street - Section 3-FY13 Urban Aid
13-480-078-6320-ALJ-6010
07/01/13
06/30/15
99,090
-
-
99,090
99,000
-
90
99,000
Summit Avenue Section 3-FY14 Municipal Aid
14-480-078-6320-ALW-6010
05/21/14
11/21/15
260,000
57,593
-
260,000
-
-
260,000
-
Summit Avenue Section 3-FY14 Urban Aid
14-480-078-6320-ALS-6010
05/21/14
11/21/15
98,470
-
-
-
-
-
-
-
Total NJ Department of Transportation
657,126
-
1,259,090
848,616
61,172
471,646
NJ Administrative Office of the Courts:
Alcohol Education and Rehabilitation
98-9735-760-001
07/01/13
06/30/14
2,217
-
-
2,217
-
-
2,217
-
Alcohol Education and Rehabilitation
98-9735-760-001
07/01/12
06/30/13
5,395
-
5,395
-
1,225
-
4,170
1,225
Alcohol Education and Rehabilitation
98-9735-760-001
07/01/10
06/30/11
3,167
-
1,142
-
-
-
1,142
2,025
Total NJ Administrative Office of the Courts
-
6,537
2,217
1,225
-
7,529
TOTAL STATE AWARDS
843,596
$
177,936
$
1,446,516
$
1,758,306
$
880,943
$
747,089
$
* - Information not available
** - Denotes Major Program
See Accompanying Notes to Schedules of Expenditures of Awards and Financial Assistance
SCHEDULE 3
THE CITY OF UNION CITY
SCHEDULE OF EXPENDITURES OF OTHER FINANCIAL ASSISTANCE
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
Program
Program Income/
Amount/
Current Year
Reprogrammed/
Grant Period
Funds
Funds Available
Current Year
Disbursements
Cancellation/
Funds Available
Cumulative
Local Department and Program
Grant Number
From
To
Grant Award
Received
June 30, 2013
Appropriations
and Charges
Transfers/ Adj
June 30, 2014
Expenditures
County of Hudson Grants:
County of Hudson Open Space Trust Grants:
Ellsworth Park Improvements
PI-02-14
9/30/2014
9/28/2016
500,000
$
-
$
-
$
500,000
$
-
$
-
$
500,000
$
-
$
Michael Leggerio Park (Formerly 38th Street
Amphitheater)
PI-01-06
1/1/2007
12/31/07
325,000
325,000
-
-
15th Street Library
*
07/01/12
06/30/13
35,000
35,000
-
-
35,000
-
Total County of Hudson Open Space Trust Fund
325,000
35,000
500,000
-
-
535,000
Capital Fund Grants:
County of Hudson Open Space Trust Grants:
Washington Park
PI-16-10
12/21/10
12/20/13
500,000
500,000
-
-
500,000
500,000
-
500,000
Leggerio Park Improvements
*
07/01/12
06/30/13
265,000
265,000
-
-
-
265,000
Total County of Hudson Open Space Trust Fund
765,000
-
-
500,000
500,000
-
TOTAL OTHER FINANCIAL ASSISTANCE
1,090,000
$
35,000
$
500,000
$
500,000
$
500,000
$
535,000
$
* - Information not available
** - Denotes Major Program
THE CITY OF UNION CITY
NOTES TO SCHEDULES OF EXPENDITURES OF
FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
A. BASIS OF ACCOUNTING
The accounting policies of the City conform to the accounting principles and practices prescribed
by the Division of Local Government Services, Department of Community Affairs, State of New
Jersey (the “Division”). 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 City accounts for federal awards and state financial assistance through the following
accounting practices which differ from those required by accounting principles generally
accepted in the United States of America.
The City, in accordance with the Division’s directives, fully realizes revenues and charges
appropriations when grants are adopted by the governing body in the budget of its Current Fund.
The revenues are charged and the receivable accounted for in the State and Federal grants fund.
Appropriations are charged and the amount allotted for spending is accounted for as an
appropriated reserve. Programs within the General Capital Fund and various Trust Funds (other
than the State and Federal Grants Fund) are accounted for within the equivalent revenue accounts
for those respective funds. Expenditures are measured from payments charged directly to
specific grant programs.
Federal and State Awards provided to subrecipients are treated as expenditures when paid to the
subrecipients.
B. REPORTING ENTITY
The City of Union City, New Jersey (the “City”) for purposes of the Supplementary Schedule of
Expenditures of Federal, State and County Awards includes all the funds of the primary
government as defined by GASB 14, The Financial Reporting Entity.
The City administers certain federal and state award programs through subrecipients. Those
subrecipients are not considered part of the City of Union City’s reporting entity.
C. PASS-THROUGH AWARDS
The City receives certain federal awards from pass-through awards of the state. The amounts
received are commingled by the state with other funds and cannot be separately identified. The
total amount of such pass-through awards is included in the Supplementary Schedules of
Expenditures of Awards and Financial Assistance.
52
THE CITY OF UNION CITY
NOTES TO SCHEDULES OF EXPENDITURES OF
FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
D. LOCAL CONTRIBUTIONS
Local matching contributions are required by certain federal and state grants. The percentage of
matching contributions varies with each program. Local matching contributions are raised in the
Current Fund budget.
E. MONITORING OF SUBRECIPIENTS
Under the requirements of the Single Audit Act and State regulations, if the City, as a primary
recipient, receives federal and state financial assistance and provides $500,000 or more of such
assistance to a subrecipient in a fiscal year, the City is responsible for determining that the
expenditures of federal and state monies passed-through to subrecipients are utilized in
accordance with applicable laws and regulations. Further, OMB Circular A-133 places other
related responsibilities upon primary recipients. Those responsibilities may be discharged in any
of several ways, including relying on independent audits performed by subrecipients.
Subrecipient audit reports for the fiscal year ended June 30, 2014, were reviewed and any
findings and questioned costs were disclosed separately.
F. CONTINGENCIES
Entitlement to the funds is generally conditional upon compliance with terms and conditions of
the grant agreements and applicable laws and regulations. Federal and state grants, entitlements
and cost reimbursements are subject to financial and compliance audits by grantors.
G. ADJUSTMENTS, TRANSFERS AND REPROGRAMMED FUNDS
Amounts reported in the accompanying schedules as “adjustments, transfers and reprogrammed
funds” represent grant balances and prior year encumbrances that were cancelled and expended
in the current year. These adjustments were made to conform with the modified accrual basis of
accounting.
H. RELATIONSHIP TO FINANCIAL STATEMENTS – STATUTORY BASIS
Amounts reported in the accompanying schedules of expenditures agree with amounts reported
in the City’s statutory basis financial statements. These amounts are reported in the Current
Fund, General Capital Fund or CDA Trust Fund as follows:
53
THE CITY OF UNION CITY
NOTES TO SCHEDULES OF EXPENDITURES OF
FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
H. RELATIONSHIP TO FINANCIAL STATEMENTS–STATUTORY BASIS (continued)
Federal
State
Other
Total
Funds Received:
Current Fund:
Grants Appropriated
1,508,027
$
843,596
$
325,000
$
2,676,623
$
Grants Unappropriated:
Current Year
-
3,368
12,435
15,803
General Capital Fund
-
-
765,000
765,000
CDA Trust Fund
1,091,559
-
-
1,091,559
2,599,586
$
846,964
$
1,102,435
$
4,548,985
$
Expenditures:
Current Fund:
Grants Appropriated
618,184
$
978,306
$
-
$
1,596,490
$
General Capital Fund
-
780,000
500,000
1,280,000
CDA Trust Fund
913,493
-
-
913,493
1,531,677
$
1,758,306
$
500,000
$
3,789,983
$
54
CITY OF UNION CITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
Section 1 - Summary of Auditors' Results
Financial Statement Section
Unmodified - O.C.B.O.A.
A) Type of Auditors Report Issued:
Adverse - G.A.A.P.
B) Internal Control over Financial Reporting:
1) Material weakness(es) identified?
Yes
No
2) Significant deficiency(ies) identified?
Yes
None reported
C) Noncompliance material to basic financial statements noted?
Yes
No
Federal Awards Section
D) Internal Control over major programs:
1) Material weakness(es) identified?
Yes
No
2) Significant deficiency(ies) identified?
Yes
None reported
E) Type of auditor's report on compliance for major program
Unqualified
F) Any audit findings disclosed that are required to be reported
in accordance with OMB Circular A-133 [section 510(e)]?
Yes
No
G) Identification of major programs:
CFDA Number(s)
Name of Federal Program or Cluster
14.218
Community Development Block Grant
10.559
Summer Food Program
16.710
ARRA Highway Recovering Program
H) Dollar threshold used to distinquish between Type A and
Type B Programs.
$300,000
I) Auditee qualified as low-risk auditee?
Yes
No
55
CITY OF UNION CITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
Section 1 - Summary of Auditors' Results
State Awards Section
J) Dollar threshold used to distinquish between Type A and
Type B Programs.
$300,000
K) Auditee qualified as low-risk auditee?
Yes
No
L) Internal Control over major programs:
1) Material weakness(es) identified?
Yes
No
2) Significant deficiency(ies) identified?
Yes
None reported
M) Type of auditor's report on compliance for major programs:
Unqualified
N) Any audit findings disclosed that are required to be reported
in accordance with N.J. OMB Circular 04-04?
Yes
No
O) Identification of major programs:
State Grant/Project Number(s)
Name of State Program
0910-10-003
Green Acres Trust - Washington Park Improvements
13-480-078-6320-ALD-6010
NJDOT - West Street Section 3 Discretionary Aid
13-480-078-6320-ALL-6010
NJDOT - West Street Section 3 Municipal Aid
13-480-078-6320-ALJ-6010
NJDOT - West Street Section 3 Urban Aid
56
THE CITY OF UNION CITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
Section 2 – Financial Statement Findings
(This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts, violations of
provisions of contracts and grant agreements, and abuse related to the financial statements for which
Governmental Auditing Standards requires reporting in a Circular A-133 audit and New Jersey OMB 04-
04. See paragraphs 13.15 and 13.35.)
FINDING FS14-01
Material Weakness in Internal Control over Financial Reporting
Criteria:
The City is responsible for reconciling bank account balances to the
general ledger in a periodic or timely manner.
Condition:
The City did not reconcile the developer’s escrow trust bank account
balance to the general ledger in a periodic and timely manner. This is a
prior year finding not corrected as of June 30, 2009.
Context:
The developer’s escrow trust bank account was not reconciled to the
general ledger at the date of the audit resulting in a net adjustment to the
general ledger cash balance to agree to the bank statement.
Effect:
There was no activity posted to the general ledger and discrepancies may
have existed that may have otherwise been discovered if it had been
reconciled to the bank balance.
Cause:
The City has not reconciled the developer’s escrow trust bank account
balance to the general ledger in a periodic and timely manner.
Questioned Costs:
None.
Recommendation:
The City must reconcile the developer’s escrow trust bank account
balance to the general ledger in a periodic and timely manner.
Views of Responsible
Officials and Planned
Corrective Actions:
The City will delegate responsibility to financial staff to reconcile the
developer’s escrow trust bank account balance to the general ledger in a
periodic and timely manner.
57
THE CITY OF UNION CITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
FINDING FS14-02
Material Weakness in Internal Control over Financial Reporting
Criteria:
N.J.S.A. 40A:4-57 prohibit the overexpenditure of any appropriation
reserves, trust funds and grants. They also prohibit expenditures without
appropriations.
Condition:
The City had $14,000 in expenditures without appropriations, $208,214
in overexpenditures of appropriation reserves, $17,477 in grant
overexpenditures and $221,727 in overexpenditures of police detail trust
reserves.
Context:
The City had expenditures without appropriations and overexpenditures.
Effect:
Adjustments were necessary to the subsequent year’s budget to provide
for the expenditures without appropriations and the overexpenditures.
Cause:
The City was not properly monitoring expenditures prior to payment.
Questioned Costs:
None.
Recommendation:
The City must review all expenditures prior to payment to ensure that
there are sufficient funds in the accounts.
Views of Responsible
Officials and Planned
Corrective Actions:
The City acknowledges this finding and will monitor all expenditures
more diligently in the future.
58
THE CITY OF UNION CITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
Section 3 – Federal Awards and State Financial Assistance Findings and Questioned Costs
(This section identifies the audit findings required to be reported by Section .510(a) of Circular A-133 and
New Jersey OMB Circular 04-04.)
FINDING SA14-01
Material Weakness in Internal Control Over Compliance – Special Tests and Provisions and
Cash Management
Summer Food Program – CFDA 10.559
Criteria:
OMB Circular 0584 (section 0002), requires that accurate planning of
meals by site is conducted, all associates are properly trained prior to the
beginning of the program, daily site logs are accurately maintained as to
the count of meals served and the site participant ethnic count and the
request for reimbursement of meals claimed is made within 60 days of
the end of the month the service is provided.
Condition:
The City did not perform proper planning of meal counts, properly train
associates, maintain accurate counts of meals and participant ethnic count
nor did they request reimbursement in a timely manner.
Context:
Meal counts by site were not properly planned, proper training was not
performed as observed by the NJ Department of Agriculture, nor were
accurate counts of meals and participant ethnic counts maintained and
therefore reimbursement requests may not be accurate. Also,
reimbursement requests were not requested in a timely manner.
Effect:
Inadequate planning, training, meal counts and untimely submissions of
requests for reimbursements could cause loss and/or non-approval of
reimbursements.
Cause:
The City did not have proper procedures in place to assure accurate
planning of meals by site, training, accurate meal counts and site
participant ethnic count or submission of timely and accurate
reimbursement requests.
Questioned Costs:
None.
59
THE CITY OF UNION CITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
FINDING SA14-01 (Continued)
Summer Food Program – CFDA 10.559 (Continued)
Recommendation:
The City must establish procedures to assure that planning of meals by
site, meal counts and site participant ethnic counts are accurately
maintained and reimbursement requests are timely submitted. The City
must provide the proper training to all associates prior to the beginning of
the program.
Views of Responsible
Officials and Planned
Corrective Actions:
The City has established and implemented new internal control
procedures with the assistance and approval of the State Department of
Agriculture. The City has also hired a grants administrator in September
2014 who has begun to handle all grant compliance.
60
THE CITY OF UNION CITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
FINDING SA14-02
Material Weakness in Internal Control Over Compliance – Period of Availability of Funds
Summer Food Program – CFDA 10.559
Criteria:
OMB Circular 0584 (section 0002), requires that the application for the
grant be made by April 15th of the year of the program.
Condition:
The City did not apply for the grant in a timely manner.
Context:
The application for the 2014 Summer Food Program should be filed by
April 15th of the program year.
Effect:
Untimely filing of the application could cause the City to become
ineligible for funding and loss of grant.
Cause:
The City did not maintain proper deadlines for the preparation of the
Summer Food Program application.
Questioned Costs:
None.
Recommendation:
The City must establish procedures to assure that the application is filed
by the deadline.
Views of Responsible
Officials and Planned
Corrective Actions:
The City has established and implemented new internal control
procedures with the assistance and approval of the State Department of
Agriculture. The City has also hired a grants administrator in September
2014 who has begun to handle all grant compliance. The City will be
filing the 2015 application in a timely manner.
61
THE CITY OF UNION CITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
FINDING SA14-03
Material Weakness in Internal Control Over Compliance – Procurement, Suspension and
Debarment
Summer Food Program – CFDA 10.559
Criteria:
OMB Circular 0584 (section 0002), requires that the provider execute the
Summer Food Program invitation for bid and contract before the program
begins and before payments are made.
Condition:
The City had a resolution for the bid, however, the contract was never
formally accepted by resolution nor was the contract signed by the City.
Context:
A resolution should be adopted and the contract should be signed prior to
the beginning of the program.
Effect:
Non-compliance with OMB Circular 0584 (section 0002).
Cause:
The City did not have proper procedures in place to assure the contract is
accepted and signed by the City.
Questioned Costs:
None.
Recommendation:
The City must establish procedures to assure that the resolution and
contract for the Summer Food Program are properly adopted and signed.
Views of Responsible
Officials and Planned
Corrective Actions:
The City has established and implemented new internal control
procedures with the assistance and approval of the State Department of
Agriculture. The City has also hired a grants administrator in September
2014 who has begun to handle all grant compliance.
62
THE CITY OF UNION CITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
FINDING SA14-04
Material Weakness in Internal Control Over Compliance – Special Tests and Provisions
Summer Food Program – CFDA 10.559
Criteria:
OMB Circular 0584 (section 0002), requires that site visits are performed
on a regular basis.
Condition:
The City did not perform site visits on a regular basis. Many sites had no
record of any site visits.
Context:
Site visits are required to assure proper conditions are being met for the
distribution of food.
Effect:
Non-compliance with OMB Circular 0584 (section 0002).
Cause:
The City did not perform maintain the required records of site visits.
Questioned Costs:
None.
Recommendation:
The City must perform the required site visits and maintain accurate
records of the visits.
Views of Responsible
Officials and Planned
Corrective Actions:
The City has established and implemented new internal control
procedures with the assistance and approval of the State Department of
Agriculture. The City has also hired a grants administrator in September
2014 who has begun to handle all grant compliance.
63
THE CITY OF UNION CITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
FINDING SA14-05
Material Weakness in Internal Control Over Compliance – Matching, Level of Effort,
Earmarking
Community Development Block Grant – CFDA 14.218
Criteria:
Pursuant to the regulations delineated at 24CFR 570.902(a), the CDBG
timeliness standard states that sixty (60) days prior to the end of its
program year, a CDBG grantee may have no more than 1.5 times the
amount of its last annual grant in its CDBG line of credit together with
CDBG program income on hand.
Condition:
As of May 2, 2014, the City’s timeliness standard was 1.81. To date, the
City has failed to meet the timeliness standard twice.
Context:
The timeliness standard is helpful for keeping track of drawdown
progress.
Effect:
Failure to meet the 1.5 timeliness requirement at the time of the next 60-
day ratio may result in a reduction of a future grant by 100 percent of the
amount in excess of the 1.5 standard.
Cause:
The City did not drawdown funds on a timely basis.
Questioned Costs:
None.
Recommendation:
The City should continue its internal monitoring to ensure that activities
are moving steadily to completion so that final payment(s) can be made.
Views of Responsible
Officials and Planned
Corrective Actions:
The City has delegated responsibility to an individual who will oversee
all CDBG drawdowns.
64
THE CITY OF UNION CITY
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS AND
QUESTIONED COSTS AS PREPARED BY MANAGEMENT
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
(This section identifies the status of prior year audit findings related to the basic financial
statements and federal and state awards that are required to be reported in accordance with
Chapter 6.12 of Government Auditing Standards, U.S. OMB Circular A-133 (Section .315(a)(b))
and New Jersey OMB Circular 04-04.)
Financial Statement Findings
FINDING FS13-01
Condition:
The City did not reconcile the outside lien holders and developer’s
escrow trust bank account balances to the general ledger in a periodic
and timely manner.
Recommendation:
The City must reconcile the outside lien holders and developer’s
escrow trust bank account balances to the general ledger in a periodic
and timely manner.
Status:
Recommendation has been adopted for the outside lien holders bank
account however, the developer’s escrow trust bank account finding is
repeated in finding FS14-01.
FINDING FS13-02
Condition:
The City did not properly maintain a complete accounting system with
an audit trail properly reflecting the activity for the year.
Recommendation:
The City must properly maintain a complete accounting system with
an audit trail properly reflecting the activity for the year.
Status:
Recommendation has been adopted and is no longer a reportable
finding.
65
(This Page Intentionally Left Blank)
GENERAL COMMENTS
THE CITY OF UNION CITY
GENERAL COMMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
CONTRACTS AND AGREEMENTS REQUIRED TO BE ADVERTISED PER N.J.S.A.
40A:11-3 AND 11-4, ET SEQ.
N.J.S.A. 40A:11-3 states: “When the cost or price of any contract awarded by the contracting
agent in the aggregate does not exceed in a contract year the total sum of $17,500, the contract
may be awarded by a purchasing agent when so authorized by ordinance or resolution, as
appropriate to the contracting unit, of the governing body of the contracting unit without public
advertising for bids except that the governing body of any contracting unit may adopt an
ordinance or resolution to set a lower threshold for the receipt of public bids or the solicitation of
competitive quotations. If the purchasing agent is qualified pursuant to subsection b. of section 9
of P.L. 1971, c.198 (C.40A:11-9), the governing body of the contracting unit may establish that
the bid threshold may be up to $36,000. Such authorization may be granted for each contract or
by a general delegation of the power to negotiate and award such contracts pursuant to this
section.”
N.J.S.A. 40A:11-4 states: “Every contract awarded by a contracting agent for the provision or
performance of any goods or services, the cost of which in the aggregate exceeds the bid
threshold, shall be awarded only by resolution of the governing body of the contracting unit to
the lowest responsible bidder after public advertising for bids and bidding therefore, except as is
provided otherwise in this act or specifically by any other law.”
The minutes indicate that bids were requested by public advertisement and contracts awarded for
the following items:
Sporting Equipment
Construction Services
NJ DOT Road Program
Poly Garbage Bags
Garbage Disposal Services
Printing Services
Summer Food for Children Programs
Landscaping Services
Pool Cleaning Services
Cleaning Supplies and Equipment
The system of records does not provide for an accumulation by categories of payments for the
performance of any work or the furnishing or hiring of any materials or supplies. The results of
such accumulation could not be reasonably ascertained. Disbursements were reviewed, however,
to determine whether any clear-cut violation existed.
Our examination of expenditures did not reveal any individual payments, contracts or
agreements in excess of $17,500 “for the performance of any work, or for the furnishing of any
materials, supplies or labor, or the hiring of teams or vehicles,” other than those where bids had
been previously sought by public advertisement or where a resolution had been previously
adopted under the provision of N.J.S.A. 40A:11-6.
66
THE CITY OF UNION CITY
GENERAL COMMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
CONTRACTS
AND
AGREEMENTS
EXCEPTED
FROM
PUBLIC
ADVERTISEMENT FOR BIDS PER N.J.S.A. 40A:11-5, et seq., 40A:11-6.1(b) AND
40A:11-12
N.J.S.A. 40A:11-12 states: “Any contracting unit under this act [the City] may without
advertising for bids, or having rejected all bids obtained pursuant to advertising therefore,
purchase any goods or services under any contract or contracts for such goods or services
entered into on behalf of the State by the Division of Purchase and Property in the Department
of the Treasury.”
When utilizing state contracts, as the contracts are commonly referred to, the City is required to
place its order with the vendor offering the lowest price, including delivery charges, that best
meets the City’s requirements, and is also required to document such with specificity prior to
placing the order.
N.J.S.A. 40A:11-5.1(a)(i) states: “Any contract the amount of which exceeds the bid
threshold, may be negotiated and awarded by the governing body without public advertising for
bids and bidding thereof and shall be awarded by resolution of the governing body if the
subject matter thereof consists of professional services. The governing body shall in each
instance state supporting reasons for its action in the resolution awarding each contract and
shall forthwith cause to be printed once, in the official newspaper, a brief notice stating the
nature, duration, service and amount of the contract, and that the resolution and contract are on
file and available for public inspection in the office of the clerk.”
There are additional exceptions noted in N.J.S.A. 40A:11-5, et seq., for contracts which may be
negotiated and awarded by resolution of the governing body without public advertising for
bids. The City has also awarded contracts under other exceptions noted in N.J.S.A. 40A:11-5
including:
• N.J.S.A. 40A:11-5.1(dd), the provision or performance of goods or services for the
support or maintenance of proprietary computer hardware and software, except that this
provision shall not be utilized to acquire or upgrade non-proprietary hardware or to
acquire or update non- proprietary software;
• N.J.S.A. 40A:11-5.1(f), the supplying of any product or the rendering of any service by a
public utility, which is subject to the jurisdiction of the Board of Public Utilities or the
Federal Energy Regulatory Commission or its successor, in accordance with tariffs and
schedules of charges made, charged or exacted, filed with the board or commission, and
• N.J.S.A. 40A:11-5.1(x) The printing of municipal ordinances or other services
necessarily incurred in connection with the revision and codification of municipal
ordinances.
67
THE CITY OF UNION CITY
GENERAL COMMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
CONTRACTS
AND
AGREEMENTS
EXCEPTED
FROM
PUBLIC
ADVERTISEMENT FOR BIDS PER N.J.S.A. 40A:11-5, et seq., 40A:11-6.1(b) AND
40A:11-12 (Continued)
N.J.S.A. 40A:11-6.1(b) states: “When in excess of the bid threshold, and after documented
effort by the contracting agent [the City] to secure competitive quotations, a contract for
extraordinary unspecifiable services may be awarded upon a determination in writing by the
contracting agent that the solicitation of competitive quotations is impracticable. Any such
contract shall be awarded by resolution of the governing body.”
N.J.S.A. 40A:11-5.1(a)(ii) further states: “The governing body shall in each instance state
supporting reasons for its action in the resolution awarding each [extraordinary unspecifiable
service] contract and reasons for its action in the resolution awarding each contract and shall
forthwith cause to be printed…a brief notice of the award of such contract.”
The notice shall be printed once, in the official newspaper, a brief notice stating the nature,
duration, service and amount of the contract, and that the resolution and contract are on file
and available for public inspection in the office of the clerk.
EXPENDITURE LESS THAN THE BID THRESHOLD BUT 15% OR MORE OF THAT
AMOUNT PER N.J.S.A. 40A:11-6.1
N.J.S.A. 40A:11-6.1 states, “For all contracts that in the aggregate are less than the bid threshold
but 15 percent or more of that amount, except for paragraph (a) of subsection (1) of section 5 of
P.L. 1971, c.198 (C.40A:11-5) concerning professional services and paragraph (b) of that
subsection concerning work by employees of the contracting unit, the contracting unit agent shall
award the contract after soliciting at least two competitive quotations, if practicable.” The City
advised us that quotations were, for the most part, solicited for items, the cost of which is $2,625
or more, within the terms of N.J.S.A. 40A:11-6.1.
68
THE CITY OF UNION CITY
GENERAL COMMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
COLLECTION OF INTEREST ON DELINQUENT TAXES
The statute provides the method for authorizing interest and the maximum rates to be charged for
the nonpayment of taxes on or before the date when they would become delinquent.
The Governing body on the 20th day of May, 1980, adopted the following resolution authorizing
interest to be charged on delinquent taxes.
“WHEREAS, the City of Union City is desirous of determining rates of interest to be
charged for delinquent payment of taxes.
NOW THEREFORE, BE IT RESOLVED by the Mayor and the Board of Commissioners
of the City of Union City as follows:
1. Pursuant to N.J.S.A. 54:4-67, the rate of interest to be charged for the non-payment of taxes
on or before the date when they would become delinquent is hereby fixed at eight percent
(8%) per annum on the first $1,500 of the delinquency and eighteen percent (18%) per
annum on any amount in excess of $1,500 to be calculated from the date the tax was payable
until the date of actual payment, provided however that no interest shall be charged if
payment of any installment is made within the tenth (10th) calendar day following the date
upon which the same becomes payable”.
It appears from the examination of the Collector’s records that interest was generally collected in
accordance with the foregoing resolutions.
TAXES AND TAX TITLE LIENS
The taxes outstanding at June 30, 2014, included taxes from the fiscal years ended June 30, 2014
and 2013. The following comparison is made of the number of tax title liens receivable at June
30, 2014:
Period Ended
Number of Liens
June 30, 2014
7
June 30, 2013
6
June 30, 2012
8
June 30, 2011
12
June 30, 2010
9
June 30, 2009
0
June 30, 2008
0
June 30, 2007
0
June 30, 2006
0
June 30, 2005
3
69
THE CITY OF UNION CITY
COMMENTS AND RECOMMENDATIONS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
FINDING 1:
The City has advanced to, or borrowed, monies from various funds. This
comment is repeated from the prior year.
Recommendation:
Interfund advances should be avoided, if possible, and be settled prior to
the year-end.
FINDING 2:
In order to maintain a positive cash flow the City is not paying over to the
School District the appropriation for local school purposes according to
statutory deadlines. This comment is repeated from the prior year.
Recommendation:
The City must pay over to the School District the appropriation for local
school purposes according to statutory deadlines.
FINDING 3:
During expenditure testing, there were many Business Registration
Certificates (BRC’s) and W-9’s unavailable for review. There were also
several vouchers that could not be located, several vendors that were not
issued a 1099 and many purchase orders that could not easily be traced to
the bills lists.
Recommendation:
The City should maintain all vouchers, vendor BRC’s and W-9’s on file
and ready for audit review and assure 1099’s are issued to all necessary
vendors. Also, bills lists should be maintained and be more user friendly.
FINDING 4:
During bid testing, there were 5 instances where vendors were paid over
the $36,000 bid threshold and no bid process or state contract was
awarded.
Recommendation:
Every contract awarded by the City for the provision or performance of
any goods or services, the cost of which in the aggregate exceeds the bid
threshold, shall be awarded only by resolution of the governing body of
the City and to the lowest responsible bidder after public advertising for
bids. Documentation of these procedures is to be made available for audit
review for all bids and state contracts.
FINDING 5:
During our test of overtime approval and procedures, there were many
payments of overtime which could not be traced to overtime sheets, 2
instances where employees signed off on their own timesheets, several
instances where auditor was unable to trace to overtime approval sheets
and several instances where auditor was unable to agree to payroll records.
Recommendation:
The City should make sure all overtime records are available for review,
properly documented, approved by the department head and accurate.
70
THE CITY OF UNION CITY
COMMENTS AND RECOMMENDATIONS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
FINDING 6:
Receipts are not being turned over to the tax collector and deposited
within 48 hours.
Recommendation:
All receipts should be deposited within 48 hours.
FINDING 7:
There were several receipts that were not posted to the proper revenue
accounts.
Recommendation:
All receipts should be posted to the proper revenue accounts.
FINDING 8:
The City’s departments do not maintain receipt ledgers and do not
reconcile permits/licenses to the tax collector’s monthly reports.
Recommendation:
Every department must maintain a receipt ledger of permits/licenses
issued and reconcile them to the tax collector report. If there are
differences, they must be reconciled on a monthly basis.
FINDING 9:
The official petty cash custodians per the State of New Jersey, Bureau of
Financial Regulation and Assistance, are no longer employed by the City
and most departments listed no longer have petty cash funds.
Recommendation:
The City should adopt resolutions rescinding petty cash funds that are no
longer in existence and change the custodians for active funds.
FINDING 10:
There is a possible investigation pending against a former Union City
Community Development employee for misappropriation of federal funds.
Recommendation:
The City should implement internal control procedures for awarding
contracts to Community Development vendors.
FINDING 11:
Checks received for police detail reimbursements are not being distributed
correctly. The City and PBA shares are being calculated at the wrong
amounts, resulting in excess funds being sent to both parties.
Recommendation:
Reimbursement checks should be properly calculated and distributed.
FINDING 12:
During our review of retiree health benefits, there were 13 retirees that
were listed on the monthly health benefit bills that were deceased.
Recommendation:
The City must implement internal control procedures to assure that
monthly retiree bills are accurate.
71
THE CITY OF UNION CITY
COMMENTS AND RECOMMENDATIONS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
FINDING 13:
There are several old outstanding checks per the City’s various bank
reconciliations.
Recommendation:
Old outstanding checks over one year old should be reviewed and
cancelled, if necessary.
72
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