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FY23 Audit Report
BID #: N/A
ISSUED: 12/28/2023
DUE: TBD
VALUE: TBD
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Executive Summary
The City of Union City's audit report, conducted for the years ended June 30, 2023 and 2022, reveals the City's financial position and changes in fund balance on a regulatory basis, as prescribed by the New Jersey Division of Local Government Services. This basis differs from U.S. Generally Accepted Accounting Principles (GAAP). The report includes comparative balance sheets, statements of operations, revenues, and appropriations for the Current Fund, and changes in fund balance for the General Capital Fund. The fiscal year ending June 30, 2023 will be the City’s final fiscal year ending on June 30. The City is reverting to a fiscal year based on a calendar year, the first of which will encompass the period January 1, 2024 through December 31, 2024. In order to implement this reversion, the City will have a six month Transition Year for the period July 1, 2023 through December 31, 2023.
Key areas of focus within the audit encompass the Current Fund, Federal and State Grants Fund, General Capital Fund, General Fixed Assets, and Trust Funds, including Animal Control, Community Development Agency, and Public Defender Trust Funds. The audit evaluates internal controls over financial reporting and compliance with applicable laws and regulations. Several audit findings, along with comments and recommendations, are detailed within the report, requiring the City to submit a corrective action plan to the Division of Local Government Services.
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Document Text
--- Document: FY23 Audit Report Document ---
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CITY OF UNION CITY
COUNTY OF HUDSON, STATE OF NEW JERSEY
REPORT OF AUDIT
FOR THE YEARS ENDED
JUNE 30, 2023 AND 2022
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CITY OF UNION CITY
AUDIT OF FINANCIAL STATEMENTS
JUNE 30, 2023
TABLE OF CONTENTS
F I N A N C I A L S E C T I O N
PAGE
EXHIBIT
TABLE
SCHEDULE
Independent Auditor's Report ……………………………………………………………
1
Financial Statements - Regulatory Basis
Current Fund (with Federal and State Grants Fund)
Comparative Balance Sheet ………………………………….........................................
4
A
Comparative Statement of Operations and Changes in Fund Balance …........................
6
A-1
Statement of Revenuess …………………………….......................................................
8
A-2
Analysis of Budgeted Revenues ……………………………………………...........
10
A-2
Analysis of Non-Budget Revenues …………………………………………...........
10
A-2
Statement of Appropriations ……………………………………...................................
11
A-3
Trust Funds
Comparative Balance Sheet ………………………………….........................................
16
B
General Capital Fund
Comparative Balance Sheet …………………..........………………….......…................
17
C
Comparative Statement of Changes in Fund Balance …………………………………… 18
C-1
General Fixed Assets
Statement of General Fixed Assets ………………..........................................................
19
D
Notes to Financial Statements:
Note 1. Summary of Significant Accounting Policies ….................................................
20
Note 2. Cash, Cash Equivalents and Investments …........................................................
25
Note 3. Property Taxes …................................................................................................
27
Note 4. Municpal Debt …................................................................................................
28
Note 5. Fund Balances Appropriated …..........................................................................
31
Note 6. Retirement Systems …........................................................................................
32
Note 7. Other Post-Employment Benefits …...................................................................
39
Note 8. Compensated Absences …..................................................................................
44
Note 9. Risk Managemnet …...........................................................................................
44
Note 10. Clearing Account …..........................................................................................
44
Note 11. Fixed Assets …..................................................................................................
44
Note 12. Deferred Charges to be Rasied in Succeeding Budgets …................................
45
Note 13. Interfund Transactions …..................................................................................
46
Note 14. Related Party Transactions …...........................................................................
46
Note 15. Economic Dependency ….................................................................................
46
Note 16. Tax Abatements …............................................................................................
47
Note 17. Contingent Liabilities …...................................................................................
47
Note 18. Subsequent Events …........................................................................................
49
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CITY OF UNION CITY
AUDIT OF FINANCIAL STATEMENTS
JUNE 30, 2023
TABLE OF CONTENTS
S T A T I S T I C A L S E C T I O N (U N A U D I T E D)
PAGE
EXHIBIT
TABLE
SCHEDULE
Roster of Officials …………………………………………………………………………… 50
Statistical Tables
Schedule of Operations and Changes in Fund Balance …...............................................
51
………….........................
1
Schedule of Tax Rate Information …..............................................................................
52
………….........................
2
Schedule of Tax Levies and Collections …......................................................................
52
………….........................
3
Schedule of Delinquent Taxes and Tax Title Liens ….....................................................
52
………….........................
4
Schedule of Property Acquired by Tax Title Lien Liquidation …...................................
53
………….........................
5
Schedule of Fund Balances ….........................................................................................
53
………….........................
6
S U P P L E M E N T A R Y I N F O R M A T I O N
FUND FINANCIAL SCHEDULES
Fund Financial Schedules - Regulatory Basis
Current Fund Schedule of:
Cash - Treasurer ………………………………………………………………………… 54
A-4
Change Fund ……………………………………………………………………………
55
A-5
Due from State of NJ - Marriage Licenses ……………………………………………… 55
A-6
Taxes Receivable and Analysis of Property Tax Levy …………………………………
56
A-7
Tax Overpayments ………………………………………………………………...........
57
A-8
Due from Property Owners - Relocation Assistance ……………………………………
57
A-9
Revenue Accounts Receivable …………………………………………………………
58
A-10
Interfunds Activity ……………………………………………………………………… 59
A-11
Due from State of New Jersey for
Senior Citizens and Veterans Deductions …………………………………………… 60
A-12
Tax Title Liens Receivable ……………………………………………………………… 60
A-13
Other Receivables ………………………………………………………………………
61
A-14
Appropriation Reserves …………………………………………………………………
62
A-15
Other Intergovernmental Payables ……………………………………………………… 64
A-16
Reserve for Liquor License Retirement ….......................................................................
65
A-17
Prepaid Taxes …………………………………………………………………………… 65
A-18
Local District School Taxes Payable ……………………………………………...........
66
A-19
County Taxes Payable ……………………………………………………….................
66
A-20
Accounts Payable ………………………………………………………………………
67
A-21
Reserve for Encumbrances ……………………………………………………………… 67
A-22
Deferred Charges ………………………………………………………………………
68
A-23
Special Emergency Notes Payable …………………………………………………......
69
A-24
Federal and State Grant Fund Schedule of:
Grants Receivable ………………………………………………....................................
71
A-25
Reserve for Appropriated Grants ………………………………………………………
74
A-26
Interfunds Activity ……………………………………………………………………
80
A-27
Reserve for Unappropriated Grants ….............................................................................
81
A-28
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CITY OF UNION CITY
AUDIT OF FINANCIAL STATEMENTS
JUNE 30, 2023
TABLE OF CONTENTS
S U P P L E M E N T A R Y I N F O R M A T I O N
FUND FINANCIAL SCHEDULES
(continued)
PAGE
EXHIBIT
TABLE
SCHEDULE
Trust Fund Schedule of:
Animal Control Trust Fund - Cash and Cash Equivalents ……………………………… 82
B-1
Animal Control Trust Fund - Due to State of New Jersey ……………………………… 82
B-2
Animal Control Trust Fund - Reserve for Expenditures ………………………………… 83
B-3
Animal Control Trust Fund - Interfunds ……………………………….........................
84
B-4
Other Trust Fund - Cash and Cash Equivalents ………………………………………… 84
B-5
Other Trust Fund - Accounts Receivable ………………………………………………
85
B-6
Other Trust Fund - Interfunds ….....................................................................................
85
B-7
Other Trust Fund - Trust Fund Reserves ………………………………………………… 86
B-8
Other Trust Fund - Reserve for Encumbrances …………………………………………
87
B-9
CDA Trust Fund - Cash and Cash Equivalents …………………………………………
87
B-10
CDA Trust Fund - Due from HUD Community Block Grant …………………………… 88
B-11
CDA Trust Fund - Reserve for Program Income ………………………………………
88
B-12
CDA Trust Fund - Reserve for Community Development Block Grant ………………… 89
B-13
CDA Trust Fund - Interfunds …………………………………………………………… 89
B-14
Public Defender Trust Fund - Cash and Cash Equivalents ……………………………… 90
B-15
Public Defender Trust Fund - Reserve for Public Defender Expenditures ….................
90
B-16
Public Defender Trust Fund - Interfunds ………………………………………………
91
B-17
General Capital Fund Schedule of:
Cash and Cash Equivalents ……………………………………………….....................
92
C-2
Analysis of Cash and Cash Equivalents ……………………………………………
93
C-3
Deferred Charges to Future Taxation - Funded …………………………………………
94
C-4
Deferred Charges to Future Taxation - Unfunded ……………………………………… 95
C-5
Due from Current Fund …………………………………………………………………
96
C-6
Improvement Authorizations ……………………………………………………………
97
C-7
Reserve for Encumbrances ……………………………………………………………..
98
C-8
General Serial Bonds …………………………………………………….......................
99
C-9
Capital Lease Payable - HCIA …..................................................................................... 101
C-10
Green Acres Loans Payable ……………………………………………………….........
102
C-11
Bond Anticipation Notes Payable ………………………………………………….......
104
C-12
Capital Lease Payable ….................................................................................................. 105
C-13
Capital Improvement Fund …………………………………………………………......
106
C-14
Reserve for Retirement of Debt Service ………………………………………………… 106
C-15
Bonds and Notes Authorized but not Issued …………………………………………… 107
C-16
General Fixed Assets Schedule of:
Changes in Fixed Assets by Class ……………………………………….......................
108
D-1
Investment in General Fixed Assets …………………………………………………..… 108
D-2
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CITY OF UNION CITY
AUDIT OF FINANCIAL STATEMENTS
JUNE 30, 2023
TABLE OF CONTENTS
OTHER REPORTING
PAGE
EXHIBIT
TABLE
SCHEDULE
Government Auditing Standards Reporting
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 …………………..........
109
Uniform Guidance and NJ OMB 15-08 Reporting
Independent Auditor's Report on Compliance
For Each Major Federal and State Program and
On Internal Control Over Compliance Required by
The Uniform Guidance and New Jersey OMB Circular 15-08 ………………………… 111
Schedule of Expenditures of Federal Awards ………………………………………………
114
1
Schedule of Expenditures of State Financial Assistance ……………………………………
116
2
Notes to Schedules of Expenditures of Federal Awards
and State Financial Assistance …………………………………………………............
118
Schedule of Findings and Questioned Costs:
Section 1 - Summary of Auditors' Results ………………………………………..........
120
Section 2 - Summary of Financial Statement Findings …………………………….......
121
Section 3 - Schedule of Federal Awards and -
State Financial Assistance - Findings and Questioned Costs ……………………… 122
Summary Schedule of Prior Year Audit Findings and
Questioned Costs as Prepared by Management ……………………………………
123
Letter of Comments and Recommendations as Required by NJ DLGS
General Comments ………………………………………………………………….............
124
Comments and Recommendations ……………………………………………….................. 127
iv
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CITY OF UNION CITY
REPORT OF AUDIT
FINANCIAL SECTION
DONOHUE GIRONDA DORIA TOMKINS LLC
1 Harmon Meadow Blvd, 3002
Secaucus, NJ 07094
―
191 Central Ave, 2nd Fl
Newark, NJ 07103
―
310 Broadway
Bayonne, NJ 07002
CERTIFIED PUBLIC ACCOUNTANTS AND
REGISTERED MUNICIPAL ACCOUNTANTS
www.dgdcpas.com | 201-275-0823
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
Opinions
We have audited the accompanying financial statements – regulatory basis of the City of Union City, New Jersey (the “City”),
which comprise the comparative balance sheets – regulatory basis, of each Fund and the comparative statements of General
Fixed Assets – regulatory basis, as of June 30, 2023 and 2022, and the related comparative statements of operations and
changes in fund balance – regulatory basis, statement of revenues – regulatory basis and statement of appropriations –
regulatory basis, of the Current Fund, and the related statement of changes in Fund Balance – regulatory basis, of the General
Capital Fund, for the years then ended, and the related notes to the financial statements.
Unmodified 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 General Fixed Assets of the City as of June 30, 2023 and 2022, the
respective operations and changes in fund balance – regulatory basis, revenues – regulatory basis and appropriations –
regulatory basis of the Current Fund, the changes in fund balance – regulatory basis of the General Capital Fund, for the years
then ended, in accordance with the financial reporting provisions of the Division of Local Government Services, Department
of Community Affairs, State of New Jersey (the “Division”) as described in Note 1.
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” section of our report, the financial statements referred to above do not present fairly, in
accordance with accounting principles generally accepted in the United States of America, the financial position of the City as
of June 30, 2023 and 2022, and the changes in its financial position for the years then ended.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America, the 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. Our responsibilities under those standards are further
described in the “Auditor's Responsibilities for the Audit of the Financial Statements” section of our report. We are required to
be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements
relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note 1, 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 meet the requirements of the Division. The effects on the financial statements of the variances between the
1
regulatory basis of accounting described in Note 1 and accounting principles generally accepted in the United States of
America, although not reasonably determinable, are presumed to be material and pervasive.
Emphasis of a Matter Regarding Fiscal Year Reversion
As described in Note 18, the fiscal year ended June 30, 2023 will be the City’s final fiscal year ending on June 30. The City is
reverting to a fiscal year based on a calendar year, the first of which will encompass the period January 1, 2024 through
December 31, 2024. In order to implement this reversion, the City will have a six month Transition Year for the period July 1,
2023 through December 31, 2023. Our opinion on the basic financial statements is not affected by the receipt of Transitional
Aid by the City.
Responsibility of Management 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. 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 fraud or error.
Auditor’s Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is
a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance
with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if
there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable
user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit 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
City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Management has omitted the management 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
2
historical context, but is not required by the financial reporting provisions of the Division. Our opinion on the basic financial
statements is not affected by the missing information.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s
financial statements. The information identified in the table of contents as Fund Financial Schedules is 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, respectively, by the
Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards and N.J. Office of Management and Budget Circular 15-08, Single Audit Policy for
Recipients of Federal Grants, State Grants and State Aid. Such information is the responsibility of management and was
derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.
The 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 directly 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
Fund Financial Schedules, Schedule of Expenditures of Federal Awards, and Schedule of Expenditures of State Financial
Assistance are fairly stated in all material respects in relation to the financial statements taken as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the
statistical section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the
basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance
thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider
whether a material inconsistency exists between the other information and the basic financial statements, or the other
information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected
material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 28, 2023, 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 & TOMKINS, LLC
Certified Public Accountants
MARK W. BEDNARZ
RMA No. 547
Secaucus, New Jersey
December 28, 2023
3
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CITY OF UNION CITY
REPORT OF AUDIT
FINANCIAL SECTION:
CURRENT FUND FINANCIAL STATEMENTS
EXHIBIT A
Sheet 1 of 2
CITY OF UNION CITY
CURRENT FUND
JUNE 30, 2023 AND 2022
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS
2023
2022
Ref.
Assets
Current Fund:
Cash and Cash Equivalents
A-4
6,963,427
$
8,702,729
$
Change Fund
A-5
398
830
6,963,825
8,703,559
Intergovernmental Receivable:
Due from State of NJ:
Senior & Veteran Deductions
A-12
23,403
25,167
Marriage Licenses
A-6
861
-
State Aid
A-10
5,000,000
-
5,024,264
25,167
Receivables and Other Assets with Full Reserves:
Taxes Receivable
A-7
20,458
4,522
Tax Title Liens Receivable
A-13
32,573
29,551
Relocation Assistance Receivable
A-9
125,278
11,552
Revenue Accounts Receivable
A-10
248,000
1,705,501
Interfunds Receivable:
Due from Federal and State Grants Fund
A-11
11,864
8,890
Due from CDA Trust Fund
A-11
-
146,035
Other Receivables
A-14
483,366
362,502
921,539
2,268,553
Deferred Charges:
Emergency Authorizations (N.J.S. 40A:4-47)
2,420,000
3,630,000
Special Emergency Authorizations (N.J.S. 40A:4-53)
4,059,176
4,512,996
Cancellation of Grant Receivables
-
498,916
Overexpenditures
1,458,476
4,504,944
COVID-19 Revenue loss
1,035,500
1,380,800
Health Insurance & Solid Waste Removal (COVID)
3,283,600
4,380,000
A-23
12,256,752
18,907,656
Total Current Fund Assets
25,166,380
29,904,935
Federal and State Grant Fund:
Cash and Cash Equivalents
A-4
566,468
3,368,073
Federal and State Grants Receivable
A-25
17,083,221
11,153,147
Total Federal and State Grant Fund Assets
17,649,689
14,521,220
Total Assets
42,816,069
$
44,426,155
$
See Accompanying Notes to the Financial Statements.
4
EXHIBIT A
Sheet 2 of 2
CITY OF UNION CITY
CURRENT FUND
JUNE 30, 2023 AND 2022
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS
2023
2022
Ref.
Liabilities, Reserves and Fund Balance
Current Fund:
Liabilities and Reserves:
Appropriation Reserves
A-3, A-15
1,348,518
$
867,890
$
Tax Overpayments
A-8
1,861
8,634
Interfunds Payable:
Due to Other Trust
A-11
-
69,510
Due to Animal Control Trust
A-11
-
27
Intergovernmental Payables
A-16
30,394
69,918
Reserve for Liquor License Retirement
A-17
58,055
45,005
Prepaid Taxes
A-18
146,707
214,904
Reserve for Encumbrances
A-22
5,608,247
8,845,750
Special Emergency Notes Payable
A-24
7,703,000
11,043,000
Total Liabilities and Reserves
14,896,782
21,164,638
Reserve for Receivables
921,539
2,268,553
Fund Balance
A-1
9,348,059
6,471,744
Total Current Fund Liabilities, Reserves and Fund Balance
25,166,380
29,904,935
Federal and State Grant Fund:
Liabilities and Reserves:
Reserve for Encumbrances
A-22
1,248,499
1,927,660
Reserve for State and Federal Grants:
Appropriated
A-26
14,767,467
12,584,670
Unappropriated
A-28
1,621,859
-
Interfunds Payable:
Due to Current Fund
A-27
11,864
8,890
Total Federal and State Grant Fund Liabilities and Reserves
17,649,689
14,521,220
Total Liabilities, Reserves and Fund Balance
42,816,069
$
44,426,155
$
See Accompanying Notes to the Financial Statements.
5
EXHIBIT A-1
Sheet 1 of 2
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023 AND 2022
COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE
- REGULATORY BASIS
2023
2022
Ref.
Revenue and Other Income Realized
Fund Balance Utilized
A-2
3,275,535
$
467,457
$
Miscellaneous Revenue Anticipated
A-2
89,907,770
79,148,489
Receipts from Delinquent Taxes
A-2
4,522
24,984
Receipts from Current Taxes
A-2
120,297,094
114,811,339
Non-Budget Revenues
A-2
721,901
444,328
Other Credits to Income:
Other Receivables Returned
A-14
362,502
99,663
Unexpended Balance of Appropriation Reserves
A-15
297,453
949,997
Dog License Fund - Statutory Excess
A-11
1,906
6,112
Cancelled Grants
-
103,807
Prior Year Interfunds Returned
-
2,573,544
214,868,683
198,629,720
Expenditures
Budget Appropriations:
Appropriations within "CAPS"
Salaries and Wages
43,572,282
43,027,730
Other Expenses
50,167,108
53,966,047
Deferred Charges and Statutory Expenditures
16,359,616
14,267,458
Appropriations excluded from "CAPS"
Operations
Salaries and Wages
8,244,160
3,980,506
Other Expenses
31,809,794
31,481,489
Capital Improvements
9,139,225
5,200,000
Debt Service
10,160,989
9,684,299
Deferred Charges
4,599,436
4,233,820
Reserve for Uncollected Taxes
1,169,107
1,128,886
Total Budget Appropriations
A-3
175,221,717
166,970,235
Local School District Taxes
A-2, A-19
15,418,637
15,418,637
County Taxes
A-2, A-20
18,445,763
18,691,989
Due County for Added and Omitted Taxes
A-2, A-20
79,428
163,628
Other Receivable Advances
A-14
483,366
362,502
Grant Receivable Writeoffs
A-11
47,308
-
Interfund Advances Originating in Current Year
A-11
11,864
154,925
State Audit Adjustment for Senior and Veterans Deductions
A-12
3,750
6,500
Refund of Prior Year Revenue
-
162,988
Uncollectible Police Detail Funds
-
69,510
209,711,833
202,000,914
Excess in Revenue
5,156,850
-
Deficit in Revenue
-
3,371,194
See Accompanying Notes to the Financial Statements.
6
EXHIBIT A-1
Sheet 2 of 2
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023 AND 2022
COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE
- REGULATORY BASIS
2023
2022
Ref.
Adjustments to Income before Fund Balance:
Expenditures Included Above Which are by Statute
Deferred Charges to Budget of Succeeding Year:
Special Emergencies
A-23
-
$
2,292,597
$
Emergency Authorizations
A-23
995,000
-
Overexpenditures
A-23
-
3,808,393
Statutory Excess to Fund Balance
6,151,850
2,729,796
Fund Balance, Beginning of Year
A
6,471,744
4,209,405
12,623,594
6,939,201
Decreased by Utilized as Anticipated Revenue
A-1
3,275,535
467,457
Fund Balance, End of Year
A
9,348,059
$
6,471,744
$
See Accompanying Notes to the Financial Statements.
7
EXHIBIT A-2
Sheet 1 of 3
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
STATEMENT OF REVENUES - REGULATORY BASIS
Budget as
N.J.S.A.
Excess or
Adopted
40A:4-87
Realized
(Deficit)
Surplus Anticipated
-
$
-
$
-
$
-
$
Surplus Anticipated with Prior Written Consent
of Director of Local Government Services
3,275,535
-
3,275,535
-
3,275,535
-
3,275,535
-
Miscellaneous Revenues:
Local Revenues:
Licenses:
Alcoholic Beverage
219,329
-
228,190
8,861
Other
118,813
-
133,639
14,826
Fees and Permits
191,748
-
209,170
17,422
Fines and Costs - Municipal Court
1,801,963
-
1,859,441
57,478
Interest and Costs on Taxes
235,726
-
214,537
(21,189)
Interest on Investments and Deposits
89,635
-
968,181
878,546
Wedding Fees
31,957
-
34,239
2,282
City Share of Police Details
94,480
-
129,772
35,292
Public Telephone Commissions
115,125
-
103,582
(11,543)
Cable Franchise Fees
227,303
-
194,921
(32,382)
Payment in Lieu of Taxes:
Union Plaza Apartments
346,625
-
337,585
(9,040)
Palisade Urban Renewal Assoc.
36,199
-
43,321
7,122
Holy Rosary
28,790
-
29,845
1,055
Horizon Heights
14,775
-
15,460
685
Serv Properties
940
-
705
(235)
Suede Promotions
20,000
-
20,000
-
Monastery Redevelopment Group LLC
39,420
-
39,451
31
3,612,828
-
4,562,039
949,211
State Aid Without Offsetting Appropriations:
Consolidated Municipal Property Tax Relief Aid
5,621,655
-
5,621,655
-
Energy Receipts Taxes
16,828,507
-
16,828,507
-
Transitional Aid
22,500,000
-
22,500,000
-
Transitional Aid - Various Capital Projects
5,670,000
-
5,670,000
-
State Aid - Additional
10,000,000
-
10,000,000
-
Municipal Relief Fund Aid
1,275,415
-
1,275,415
-
61,895,577
-
61,895,577
-
Dedicated Uniform Construction Code Fees Offset with Appropriations:
Uniform Construction Code Fees
1,605,719
-
1,614,674
8,955
Special Items of Revenue - Shared Service Agreements
Union City Board of Education:
Recreational Center
425,000
-
425,000
-
Solid Waste Removal
522,906
-
1,045,812
522,906
Off Duty Police Officers
100,000
-
114,820
14,820
47th Street Pool
136,000
-
136,000
-
Police Services (School Resource)
436,843
-
667,084
230,241
School Crossing Guards
2,429,444
-
2,429,444
-
Snow Removal
100,000
-
-
(100,000)
Police Services - SLEO
1,531,400
-
1,425,641
(105,759)
5,681,593
-
6,243,801
562,208
See Accompanying Notes to the Financial Statements.
8
EXHIBIT A-2
Sheet 2 of 3
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
STATEMENT OF REVENUES - REGULATORY BASIS
Budget as
N.J.S.A.
Excess or
Adopted
40A:4-87
Realized
(Deficit)
Miscellaneous Revenues (continued):
Special Items of Revenue - Public and Private Revenues
Community Energy Plan Grant
25,000
$
-
$
25,000
$
-
$
COVID-19 Vaccination Supplemental Funding 2023
50,000
-
50,000
-
Recycling Tonnage Grant
107,409
-
107,409
-
Bulletproof Vest
13,640
-
13,640
-
Pedestrian Safety Grant
35,000
-
35,000
-
Municipal Alliance on Alcoholism & Drug Abuse
21,005
-
21,005
-
Body Armor Replacement Fund
9,471
-
9,471
-
Distracted Driving Crackdown Grant
12,250
-
12,250
-
Enhancing Local Public Health Infrastructure
653,917
-
653,917
-
Prevention Coalition Drug-Free Communities
125,000
-
125,000
-
Dept of Community Affairs - 41st Street Park Grant
1,700,000
-
1,700,000
-
Youth Leadership Municipal Alliance
7,616
-
7,616
-
Electric Vehicle DC Fast Charger Community Grant
150,000
-
150,000
-
Clean Energy Electric Vehicle Tourism Grant
42,000
-
42,000
-
Green Acres - 4100 Palisade Acquisition
225,000
-
225,000
-
Drive Sober Year End Holiday Crackdown
10,500
-
10,500
-
Drive Sober Get Pulled Over
8,750
-
8,750
-
National Opioid Settlement
346,324
-
346,324
-
NJDOT Municipal Aid Program 13,37th &38th St Improv
881,990
-
881,990
-
COPS Hiring Program
3,750,000
-
3,750,000
-
COPS Technology & Equipment
1,100,000
-
1,100,000
-
Click it or Ticket
-
14,000
14,000
-
Farmers Market
-
1,220
1,220
-
Strengthening Local Public Health Capacity
274,735
-
274,735
-
9,549,607
15,220
9,564,827
-
Special Items of Revenue - Other
North Hudson Community Action Center Lease
26,640
-
30,364
3,724
Sale of Building
2,469,225
-
2,469,225
-
Capital Surplus
432,000
-
432,000
-
Interfund - CDBG Trust Fund
146,035
-
146,035
-
Interfund - Grant Fund
8,890
-
8,890
-
Emergency Medical Services
800,000
-
1,084,601
284,601
Division of Fire Safety
79,624
-
-
(79,624)
Reserve for Debt Service
156,698
-
156,698
-
Five Year Abatement Program
920,035
-
699,039
(220,996)
American Rescue Plan Act / Coronavirus
State and Local Fiscal Recovery Funds (SLFRF)
COVID-19 Health Insurance Increase
1,000,000
-
1,000,000
-
6,039,147
-
6,026,852
(12,295)
Total Miscellaneous Revenues
88,384,471
15,220
89,907,770
1,508,079
Receipts From Delinquent Taxes
16,481
-
4,522
(11,959)
Subtotal General Revenues
91,676,487
15,220
93,187,827
1,496,120
Amount to Be Raised by Taxes for Support of Municipal Budget:
Local Tax for Municipal Purposes
81,863,170
$
-
$
84,777,403
$
2,914,233
$
Minimum Library Tax
1,575,863
-
1,575,863
-
83,439,033
-
86,353,266
2,914,233
Total Budget Revenues
175,115,520
15,220
179,541,093
4,410,353
Non-Budget Revenues
-
-
721,901
721,901
Total General Revenues
175,115,520
$
15,220
$
180,262,994
$
5,132,254
$
A-3
A-3
See Accompanying Notes to the Financial Statements.
9
EXHIBIT A-2
Sheet 3 of 3
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
STATEMENT OF REVENUES - REGULATORY BASIS
Budget as
N.J.S.A.
Excess or
Adopted
40A:4-87
Realized
(Deficit)
Analysis of Budget Revenue Realized
Allocation of Current Taxes
Revenue from Collections
A-7
119,127,987
$
Add:
Reserve for Uncollected Taxes
A-3
1,169,107
A-1
120,297,094
Less:
Allocated to School Taxes
A-1, A-19
15,418,637
Allocated to County Taxes
A-1, A-20
18,525,191
Amount for Support of Municipal Budget
86,353,266
$
Receipts from Delinquent Taxes
Delinquent Tax Collections
A-7
4,522
A-1
4,522
Miscellaneous Revenues Anticipated
Cash Receipts
A-10
66,764,682
Revenues from Other Funds, Reserves and Deposits
A-10
8,578,261
Non-Reserved Revenues Receivable from State
A-10
5,000,000
Grant Revenue - As Adopted
A-11
9,549,607
Grant Revenue - Added by NJSA 40A:4-87
A-11
15,220
Total Miscellaneous Revenues
A-1
89,907,770
Surplus Anticipated
A-1
3,275,535
Total Budget Revenues Anticipated
179,541,093
$
Analysis of Non-Budget Revenue
Received in Cash
LEA Rebate
82,259
$
Copy of Reports
37,587
31st Street Parking Lot
5,660
Bus Shelter Rent
3,000
Police Detail Admin Fee
97,800
Miscellaneous
208,571
Unclaimed Tax Credit
8,635
Municipal Lien Redemption Interest
332
Building Department Settlements
268,400
Foreclosure Premium to City
700
Foreclosed Property Fees
5,000
Motor Vehicle Inspection Fines
100
Return of Bank Fees
3,224
2% Admin payment-Sr Citizen/Vets
633
A-1
721,901
$
A-4
624,101
$
A-11
97,800
721,901
$
See Accompanying Notes to the Financial Statements.
10
EXHIBIT A-3
Sheet 1 of 5
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
STATEMENT OF APPROPRIATIONS - REGULATORY BASIS
Appropriations
Expended
Adopted
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
(A) Operations - Within "CAPS"
Department of Public Affairs:
Director's Office
Salaries and Wages
320,620
$
323,318
$
323,318
$
-
$
-
$
-
$
Other Expenses
9,000
3,500
3,235
-
265
-
Municipal Court
Salaries and Wages
1,486,920
1,457,220
1,457,218
-
2
-
Other Expenses
240,000
301,435
243,611
57,824
-
-
Public Defender
Other Expenses
85,000
84,000
70,020
12,850
1,130
-
Senior Citizens
Salaries and Wages
651,200
617,000
616,984
-
16
-
Other Expenses
34,000
44,695
44,694
-
1
-
Hispanic/Cultural Affairs
Other Expenses
33,000
33,000
31,050
1,050
900
-
North Hudson Council of Mayors
Other Expenses
100,000
100,000
66,507
22,169
11,324
-
Municipal Land Use Law (NJS 40:55D-1)
Regional Planning Board
Salaries and Wages
23,150
22,231
22,231
-
-
-
Other Expenses
31,000
24,338
10,764
-
13,574
-
Continuous Planning Program
90,000
73,500
40,707
27,410
5,383
-
Celebration of Public Events
Other Expenses
167,000
162,900
162,819
-
81
-
Department of Revenue and Finance:
Director's Office
Salaries and Wages
16,000
15,500
15,500
-
-
-
Other Expenses
5,000
800
757
-
43
-
City Clerk's Office
Salaries and Wages
357,100
357,926
357,926
-
-
-
Other Expenses
130,000
133,642
101,114
32,528
-
-
Treasurer's Office
Salaries and Wages
390,100
392,341
392,341
-
-
-
Other Expenses
820,000
700,000
660,661
26,197
13,142
-
Assessment of Taxes
Salaries and Wages
361,765
367,057
367,057
-
-
-
Other Expenses
16,000
17,239
17,238
-
1
-
Collection of Taxes
Salaries and Wages
236,000
235,418
235,417
-
1
-
Other Expenses
25,000
25,841
25,638
203
-
-
Central Purchasing
Salaries and Wages
129,245
133,074
133,074
-
-
-
Other Expenses
15,000
15,000
8,337
-
6,663
-
Rent Control Board
Salaries and Wages
382,272
374,245
374,245
-
-
-
Other Expenses
60,000
14,500
11,486
3,004
10
-
Insurance
General Liability
2,420,000
2,590,302
2,570,184
20,117
1
-
Workers Compensation
2,150,000
2,156,208
2,151,186
5,022
-
-
Employee Group Health
22,414,228
21,558,770
20,371,079
403,923
783,768
-
Tax Searches
Salaries and Wages
5,000
5,000
5,000
-
-
-
Other Expenses
250
250
-
-
250
-
Elections
Salaries and Wages
10,000
1,811
1,811
-
-
-
Other Expenses
295,000
339,905
321,447
18,458
-
-
Membership NJ League of Municipalities
Other Expenses
4,600
4,600
4,485
75
40
-
Annual Audit
Other Expenses
97,000
92,000
-
92,000
-
-
Printing - All Departments
Other Expenses
633,500
644,394
644,393
-
1
-
Photocopying
Other Expenses
50,000
62,632
62,631
-
1
-
Tax Sale Costs
Other Expenses
10,000
7,905
-
7,905
-
-
See Accompanying Notes to the Financial Statements.
11
EXHIBIT A-3
Sheet 2 of 5
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
STATEMENT OF APPROPRIATIONS - REGULATORY BASIS
Appropriations
Expended
Adopted
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
(A) Operations - Within "CAPS"
Department of Revenue and Finance:
Postage-All Departments
Other Expenses
400,000
$
443,255
$
441,294
$
1,960
$
1
$
-
$
Data Processing
Other Expenses
25,000
17,800
17,725
-
75
-
Day Care Center
Other Expenses
260,000
260,000
130,000
130,000
-
-
Department of Parks and Public Property:
Director's Office
Salaries and Wages
182,000
175,926
175,925
-
1
-
Other Expenses
5,000
5,000
3,497
-
1,503
-
Department of Public Safety:
Director's Office
Salaries and Wages
750,000
746,953
715,124
-
31,829
-
Other Expenses
201,000
219,184
210,983
8,200
1
-
Weddings
Salaries and Wages
31,200
34,175
34,175
-
-
-
Legal Department
Salaries and Wages
201,060
212,408
212,407
-
1
-
Tenant Advocacy
10,000
8,500
8,438
-
62
-
Other Expenses
1,611,000
1,823,780
1,407,760
416,020
-
-
Police Department
Salaries and Wages
23,762,826
23,575,384
23,573,167
-
2,217
-
Overtime
1,000,000
963,048
963,047
-
1
-
Other Expenses
1,200,000
1,229,929
1,027,024
202,854
51
-
Traffic Signs and Safety
Other Expenses
70,000
70,000
25,228
-
44,772
-
Emergency Management Services
Salaries and Wages
33,500
33,500
33,500
-
-
-
Other Expenses
5,500
3,752
3,752
-
-
-
Emergency Medical Services
Salaries and Wages
2,493,235
2,503,134
2,503,134
-
-
-
Other Expenses
135,000
89,000
87,354
766
880
-
Life Hazard Use Fee-Uniform Fire Safety
Other Expenses
30,000
30,000
25,053
1,502
3,445
-
Fleet Maintenance
Other Expenses
800,000
800,000
722,970
55,753
21,277
-
Contribution to UCRA
126,000
-
-
-
-
-
Board of Health
Salaries and Wages
347,000
335,989
335,989
-
-
-
Other Expenses
165,000
154,200
154,035
75
90
-
Welfare
Relocation Assistance
363,862
1,319,421
1,295,130
24,290
1
-
Department of Public Works:
Director's Office
Salaries and Wages
380,000
354,077
354,076
-
1
-
Other Expenses
45,000
55,657
55,416
240
1
-
Street Cleaning
Salaries and Wages
5,325,665
5,414,201
5,414,201
-
-
-
Other Expenses
170,000
258,849
255,499
3,350
-
-
Streets Repairs and Maintenance
Other Expenses
230,000
102,000
91,913
9,743
344
-
Snow Removal
Salaries and Wages
10,000
8,628
8,628
-
-
-
Other Expenses
30,000
34,610
34,610
-
-
-
Board of Adjustment
Salaries and Wages
22,000
22,000
22,000
-
-
-
Other Expenses
46,000
47,172
44,872
2,300
-
-
Solid Waste Disposal
Salaries and Wages
1,344,000
1,353,118
1,353,118
-
-
-
Other Expenses
4,899,544
4,569,544
4,308,000
260,446
1,098
-
Engineering Services
Other Expenses
1,500,000
1,500,000
1,385,619
-
114,381
-
Public Assistance
Other Expenses
460,000
716,597
708,865
7,602
130
-
See Accompanying Notes to the Financial Statements.
12
EXHIBIT A-3
Sheet 3 of 5
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
STATEMENT OF APPROPRIATIONS - REGULATORY BASIS
Appropriations
Expended
Adopted
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
(A) Operations - Within "CAPS"
Department of Parks and Public Property:
Parks and Playgrounds
Other Expenses
800,000
$
854,044
$
755,706
$
98,338
$
-
$
-
$
Public Buildings and Grounds
Salaries and Wages
1,375,000
1,368,911
1,368,910
-
1
-
Other Expenses
900,000
920,055
883,409
36,645
1
-
Recreation
Salaries and Wages
635,000
740,089
740,088
-
1
-
Other Expenses
800,000
768,600
739,529
29,033
38
-
Uniform Construction Code:
State Uniform Construction Code Officials:
Salaries and Wages
1,160,756
1,166,167
1,166,167
-
-
-
Other Expenses
493,000
398,000
251,215
145,244
1,541
-
Department of Parks and Public Property:
Sub-Code Officials:
Electrical Inspector
Salaries and Wages
39,000
39,000
38,250
-
750
-
Fire Inspector
Salaries and Wages
230,000
223,433
223,433
-
-
-
Other Expenses
40,000
26,803
26,802
-
1
-
(A) Operations - Within "CAPS"
Unclassified:
Retirement Benefits
200,000
995,000
959,148
-
35,852
-
Gasoline
700,000
650,000
599,518
50,000
482
-
Telephone
350,000
335,000
312,797
21,267
936
-
Electricity
2,160,000
1,765,000
1,761,301
-
3,699
-
Water
508,000
425,000
424,230
-
770
-
Sewer
95,000
80,000
79,974
-
26
-
Total Operations within "CAPS"
93,460,098
93,739,390
90,400,170
2,236,363
1,102,857
-
Detail:
Salaries and Wages
43,691,614
43,572,282
43,537,461
-
34,821
-
Other Expenses
49,768,484
50,167,108
46,862,709
2,236,363
1,068,036
-
Deferred Charges and Statutory Expenditures -
Deferred Charges - Municipal Within "CAPS"
Overexpenditures
4,504,944
4,504,944
4,504,944
-
-
-
Statutory Expenditures - Contributions to:
PERS
1,858,335
1,853,908
1,853,907
-
1
-
Social Security System
2,500,000
2,394,787
2,394,786
-
1
-
Consolidated Police and
Firemen Pension Fund
5,000
-
-
-
-
-
PFRS
7,134,640
7,134,640
7,134,640
-
-
-
Unemployment Insurance
152,000
152,000
-
152,000
-
-
Pension Adjustment
9,474
9,474
9,474
-
-
-
DCRP
280,000
309,863
309,863
-
-
-
16,444,393
16,359,616
16,207,614
152,000
2
-
Total Appropriations for
Municipal Purposes within "CAPS"
109,904,491
110,099,006
106,607,784
2,388,363
1,102,859
-
Other Operations Excluded from "CAPS"
Free Public Library
1,575,863
1,575,863
1,575,863
-
-
-
North Hudson Fire & Rescue
19,500,000
19,500,000
16,260,131
3,189,171
50,698
-
Health Insurance
2,585,772
2,585,772
2,585,772
-
-
-
Garbage & Trash Removal & Disposal
798,456
798,456
798,456
-
-
-
PFRS
282,488
282,488
282,488
-
-
-
PERS
6,981
6,981
6,981
-
-
-
24,749,560
24,749,560
21,509,691
3,189,171
50,698
-
See Accompanying Notes to the Financial Statements.
13
EXHIBIT A-3
Sheet 4 of 5
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
STATEMENT OF APPROPRIATIONS - REGULATORY BASIS
Appropriations
Expended
Adopted
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
Shared Service Agreements:
Union City Board of Education
Solid Waste Removal
522,906
$
522,906
$
522,906
$
-
$
-
$
-
$
47th Street Pool
136,000
136,000
136,000
-
-
-
Recreation Center Lease
425,000
425,000
425,000
-
-
-
Snow Removal
100,000
100,000
-
-
-
100,000
Off Duty Police Officers
100,000
100,000
100,000
-
-
-
SLEO III Police Officers
1,531,400
1,531,400
727,388
-
-
804,012
Police Services
436,843
436,843
436,843
-
-
-
School Crossing Guards
2,429,444
3,229,929
3,034,968
-
194,961
-
Total Shared Service Agreements
5,681,593
6,482,078
5,383,105
-
194,961
904,012
Public and Private Programs Offset by Revenue:
Matching Funds for Grants
161,501
-
-
-
-
-
Community Energy Plan Grant
25,000
25,000
25,000
-
-
-
COVID-19 Vaccination Supplemental Fun
50,000
50,000
50,000
-
-
-
Recycling Tonnage Grant
107,409
107,409
107,409
-
-
-
Bulletproof Vest
13,640
13,640
13,640
-
-
-
Pedestrian Safety Grant
35,000
35,000
35,000
-
-
-
Municipal Alliance on Alcoholism & Drug Abuse
Grant Award
21,005
21,005
21,005
-
-
-
Local Match
-
5,251
5,251
-
-
-
Body Armor Replacement Fund
9,471
9,471
9,471
-
-
-
Distracted Driving Crackdown Grant
12,250
12,250
12,250
-
-
-
Enhancing Local Public Health Infrastructu
653,917
653,917
653,917
-
-
-
Prevention Coalition Drug-Free Communities
Grant Award
125,000
125,000
125,000
-
-
-
Local Match
-
156,250
156,250
-
-
-
Dept of Community Affairs - 41st Street P
1,700,000
1,700,000
1,700,000
-
-
-
Youth Leadership Municipal Alliance
7,616
7,616
7,616
-
-
-
Electric Vehicle DC Fast Charger Commun
150,000
150,000
150,000
-
-
-
Clean Energy Electric Vehicle Tourism Gr
42,000
42,000
42,000
-
-
-
Green Acres - 4100 Palisade Acquisition
225,000
225,000
225,000
-
-
-
Drive Sober Year End Holiday Crackdown
10,500
10,500
10,500
-
-
-
Drive Sober Get Pulled Over
8,750
8,750
8,750
-
-
-
National Opioid Settlement
346,324
346,324
346,324
-
-
-
NJDOT Municipal Aid Program 13,37th &
881,990
881,990
881,990
-
-
-
COPS Hiring Program
3,750,000
3,750,000
3,750,000
-
-
-
COPS Technology & Equipment
1,100,000
1,100,000
1,100,000
-
-
-
Click it or Ticket
-
14,000
14,000
-
-
-
Farmers Market
-
1,220
1,220
-
-
-
Strengthening Local Public Health
274,735
274,735
274,735
-
-
-
9,711,108
9,726,328
9,726,328
-
-
-
Total Operations Excluded from "CAPS"
40,142,261
40,957,966
36,619,124
3,189,171
245,659
904,012
Other Operations Excluded from "CAPS"
Detail:
Salaries and Wages
8,247,687
9,048,172
8,049,199
-
194,961
804,012
Other Expenses
31,894,574
31,909,794
28,569,925
3,189,171
50,698
100,000
Capital Improvements Excluded from "CAPS":
Capital Improvement Fund
3,469,225
3,469,225
3,469,225
-
-
-
Projects Funded by
Additional Transitional Aid
5,670,000
5,670,000
5,670,000
-
-
-
9,139,225
9,139,225
9,139,225
-
-
-
See Accompanying Notes to the Financial Statements.
14
EXHIBIT A-3
Sheet 5 of 5
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
STATEMENT OF APPROPRIATIONS - REGULATORY BASIS
Appropriations
Expended
Adopted
Budget After
Paid or
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
Municipal Debt Service Excluded from "CAPS":
Payment of Bond Principal
4,850,000
$
4,850,000
$
4,850,000
$
-
$
-
$
-
$
Bond Anticipation Notes
547,000
547,000
547,000
-
-
-
Interest on Bonds
1,982,955
1,982,955
1,982,955
-
-
-
Interest on Notes
546,315
546,315
546,313
-
-
2
Green Trust Loans:
Swimming Pool
49,747
49,747
49,747
-
-
-
17th Street Park
4,353
4,353
4,353
-
-
-
Leggiero Music Park
36,697
36,697
36,697
-
-
-
Interest on Special Emergency Notes
226,425
226,425
226,417
-
-
8
Hudson County Improvement Authority:
Capital Lease - Principal
1,348,036
1,348,036
1,317,323
30,713
-
-
Capital Lease - Interest
149,724
149,724
149,724
-
-
-
Capital Lease:
Ambulance
134,359
134,359
134,359
-
-
-
Street Sweeper
54,216
54,216
54,216
-
-
-
Packer Lease
68,850
68,850
68,850
-
-
-
Parking Authority Debt
-
-
-
-
-
-
Leasing of Vehicles
162,322
162,322
162,322
-
-
-
10,160,999
10,160,999
10,130,276
30,713
-
10
Deferred Charges - Municipal - Excluded from "CAPS":
Special Emergency Authorization -
5 Years (N.J.S.A. 40A:4-55)
477,905
477,905
477,905
-
-
-
Grant Reivable Write-Off
498,917
498,917
498,916
-
-
1
Other Emergencies
3,622,615
3,622,615
3,622,615
-
-
-
4,599,437
4,599,437
4,599,436
-
-
1
Total General Appropriations for Municipal Purposes
Excluded from "CAPS"
64,041,922
64,857,627
60,488,061
3,219,884
245,659
904,023
Total General Appropriations
Excluded from "CAPS"
64,041,922
64,857,627
60,488,061
3,219,884
245,659
904,023
Subtotal General Appropriations
173,946,413
174,956,633
167,095,845
5,608,247
1,348,518
904,023
Reserve for Uncollected Taxes
1,169,107
1,169,107
1,169,107
-
-
-
Total General Appropriations
175,115,520
$
176,125,740
$
168,264,952
$
5,608,247
$
1,348,518
$
904,023
$
A-22
A
Adopted Budget
A-2
175,115,520
$
132,775,313
$
A-4
Cash Disbursements, Net of Refunds
Added by NJSA 40A:4-87
A-2
15,220
1,169,107
A-2
Reserve for Uncollected Taxes
Special Emergencies
A-23
995,000
6,832,955
A-10
Qualified Bonds Paid by State
176,125,740
18,865,553
A-11
Due to Other Funds
Add: Overexpended to Deferred Charge
A-23
-
9,104,380
A-23
Deferred Charges
Less: Cancelled
904,023
(482,356)
A-14
Budget Reimbursements
A-1
175,221,717
$
168,264,952
$
See Accompanying Notes to the Financial Statements.
15
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CITY OF UNION CITY
REPORT OF AUDIT
FINANCIAL SECTION:
TRUST FUND FINANCIAL STATEMENTS
EXHIBIT B
CITY OF UNION CITY
TRUST FUNDS
JUNE 30, 2023 AND 2022
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS
2023
2022
Ref.
Assets
Animal Control Trust Fund
Cash and Cash Equivalents
B-1
10,142
$
9,152
$
Due from Current Fund
B-4
-
27
10,142
9,179
Other Trust Fund
Cash and Cash Equivalents
B-5
11,415,322
14,759,000
Account Receivables
B-6
390,942
407,067
Due from Current Fund
B-7
-
69,510
11,806,264
15,235,577
Community Development Agency Fund
Cash and Cash Equivalents
B-10
6,122
10,275
Due from HUD Community Development Block Grant
B-11
1,270,899
1,927,225
1,277,021
1,937,500
Public Defender Trust Fund
Cash and Cash Equivalents
B-15
-
1,800
Total Assets
13,093,427
$
17,184,056
$
Liabilities and Reserves
Animal Control Trust Fund
Due to the State of New Jersey
B-2
-
$
864
$
Reserve for Animal Control Trust Fund Expenditures
B-3
10,142
8,315
10,142
9,179
Other Trust Fund
Reserve for Other Trust Fund Activity
B-8
11,511,720
13,901,308
Reserve for Encumbrances Payable
B-9
294,544
1,334,269
11,806,264
15,235,577
Community Development Agency Fund
Reserve for Community Development Block Grant
B-13
1,011,620
1,754,443
Reserve for Encumbrances
B-13
265,401
37,022
Due to Current Fund
B-14
-
146,035
1,277,021
1,937,500
Public Defender Trust Fund
Reserve for Public Defender Trust Expenditures
B-16
-
1,800
Total Liabilities and Reserves
13,093,427
$
17,184,056
$
See Accompanying Notes to the Financial Statements.
16
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CITY OF UNION CITY
REPORT OF AUDIT
FINANCIAL SECTION:
GENERAL CAPITAL FUND
FINANCIAL STATEMENTS
EXHIBIT C
CITY OF UNION CITY
GENERAL CAPITAL FUND
JUNE 30, 2023 AND 2022
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS
2023
2022
Ref.
Assets
Cash and Cash Equivalents
C-2, C-3
11,691,949
$
13,209,703
$
Deferred Charges to Future Taxation:
Funded
C-4
67,789,440
74,211,465
Unfunded
C-5
28,919,577
29,691,864
Total Assets
108,400,966
$
117,113,032
$
Liabilities, Reserves and Fund Balance
Liabilities and Reserves:
Capital Improvement Fund
C-14
1,532,811
$
3,101,464
$
Improvement Authorizations:
Funded
C-7
6,371,296
3,176,183
Unfunded
C-7
5,215,375
6,924,316
Encumbrances Payable
C-8
4,552,110
5,786,423
General Serial Bonds
C-9
64,420,000
69,270,000
Capital Lease Payable
C-13
1,181,923
1,330,959
Capital Lease Payable - HCIA
C-10
1,451,732
2,799,768
Green Acres Loans Payable
C-11
735,785
810,738
Bond Anticipation Notes
C-12
22,793,000
23,340,000
Reserve for Retirement of Debt Service
C-15
29,007
185,705
Total Liabilities and Reserves
108,283,039
116,725,556
Fund Balance
C-1
117,927
387,476
Total Liabilities, Reserves and Fund Balance
108,400,966
$
117,113,032
$
Bonds and Notes Authorized But Not Issued
C-16
6,126,577
$
6,351,864
$
See Accompanying Notes to the Financial Statements.
17
EXHIBIT C-1
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
COMPARATIVE STATEMENTS OF CHANGES IN FUND BALANCE - REGULATORY BASIS
2023
2022
Ref.
Balance, June 30, 2022
C
387,476
$
1,423,110
$
Increased by:
Premium on HCIA Note Sales
C-2
162,451
164,366
549,927
1,587,476
Decreased by:
Anticipated as Revenue in Current Budget
C-6
432,000
1,200,000
Balance, June 30, 2023
C
117,927
$
387,476
$
See Accompanying Notes to the Financial Statements.
18
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CITY OF UNION CITY
REPORT OF AUDIT
FINANCIAL SECTION:
GENERAL FIXED ASSETS
FINANCIAL STATEMENTS
EXHIBIT D
CITY OF UNION CITY
GENERAL FIXED ASSETS
JUNE 30, 2023 AND 2022
COMPARATIVE STATEMENT OF GENERAL FIXED ASSETS - REGULATORY BASIS
2023
2022
Ref.
Assets
Land
20,351,200
$
20,351,200
$
Buildings and Improvements
51,324,409
50,932,213
Machinery, Equipment and Other
16,109,446
15,317,057
Total Assets
D-1
87,785,055
$
86,600,470
$
Reserves
Investment in General Fixed Assets
87,785,055
$
86,600,470
$
Total Reserves
D-2
87,785,055
$
86,600,470
$
See Accompanying Notes to the Financial Statements.
19
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CITY OF UNION CITY
REPORT OF AUDIT
FINANCIAL SECTION:
NOTES TO FINANCIAL STATEMENTS
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The City of Union City (the “City”) is organized as a Commission form of government 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 the 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. The Governmental Accounting Standards Board
(“GASB”) establishes criteria to be used to determine which component units should be included in the financial statements
of the primary government (the City). If the provisions of GASB had been complied with, the financial statements of the
Union City Day Care Center (a non-profit organization), the Union City Board of Education, the Union City Housing
Authority, the Union City Parking Authority, the Union City Public Library, and the Union City Redevelopment Agency
would be discretely presented as component units within the City’s financial statements. However, the State of New Jersey,
Department of Community Affairs, Division of Local Government Services (the “Division”) requires the financial statements
of the City to be reported separately from its component units. Accordingly, the financial statements of the City do not
include the operations of these entities.
BASIS OF PRESENTATION
GASB is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
GASB codification establishes three fund categories 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 financial statements of the City have been prepared in conformity with accounting principles and practices prescribed by
the Division, which differ from GAAP. The principles and practices prescribed by the Division 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 its financial transactions
through the following separate funds and account group, which differ from the fund structure required by GAAP.
DESCRIPTION OF FUNDS
The accounts of the City are maintained in accordance with the Division’s principles of fund accounting. The Division’s
principles of fund accounting require that resources be classified for accounting and reporting purposes into funds in
accordance with activities or objectives specified for the resources. The operations of each fund are accounted for with a
separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures. Resources
are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means
by which spending activities are controlled. The General Fixed Assets account group, on the other hand, is a financial
reporting device designed to provide accountability for certain fixed assets and the investment in those fixed assets that are
not recorded in the funds because they do not directly affect net expendable available financial resources.
Current Fund – is used to account for all resources and expenditures for governmental operations of a general nature.
Federal and State Grants Fund – is used to account for receivables due from grantor agencies and the balance of grant
awards available for spending, after first having been formally adopted by Current Fund budget or subsequent insertion in
the budget in accordance with N.J.S.A. 40A:4-87. This fund is presented within the City’s Current Fund statements and
schedules.
20
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
General Capital Fund – is used to account for receipts and disbursements of funds for the acquisition of general capital
facilities, other than those acquired in the Current Fund or the Trust Fund. Bonds, notes and loans payable are recorded in this
fund, offset by deferred charges to future taxation.
General Fixed Assets – is not a separate fund type, but is used to account for fixed assets required in general governmental
operations.
Trust Funds – are used to account for receipts, custodianship and disbursements of dedicated revenues in accordance with
the purpose for which each reserve was created, subject to available cash in each individual trust fund reserve established
pursuant to applicable state statutes or as an agent for individuals and other governmental agencies. The City has the
following Trust Funds:
Animal Control Trust Fund – is used to account for fees collected from dog and cat licenses and expenditures which are
regulated by N.J.S.A 4:19-15.11.
Other Trust Funds – is used to account for the assets and resources held by the City in a trustee or agent capacity.
Included in this fund are monies collected and disbursed for the purposes of: insurance proceeds, Council on Affordable
Housing, tax sale redemption and premiums, escrow accounts, the parking offenses adjudication act, public defender
fees, forfeitures, elevator inspections, fire victims assistance funds, recreation program proceeds, storm recovery trust,
tree planning programs and donations of various sorts and the outside employment of off-duty police officers whereas
fees are charged contractors for the use of police officers and vehicles and police officer overtime is then paid from these
contractor’s fees.
Community Development Agency Fund – is used to account for the assets and resources held by the City in a trustee or
agent capacity, the source of which is United States Housing and Urban Development grant awards such for the
Community Development Block Grant program.
Public Defender Trust Fund – is used to account for public defender fees and the costs of providing public defender
services as necessary.
BASIS OF ACCOUNTING
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 GAAP. The current financial resources focus and modified accrual basis of accounting is generally followed with
significant exceptions which are explained as follows:
Revenues – Revenues are realized when received in cash except for certain amounts which are due from other governmental
units. Receipts from federal revenue sharing funds and other federal and state grants are realized as revenue when anticipated
in the budget. Receivables for property taxes and other amounts that are due to the City are recorded with offsetting reserves
on the balance sheet of the Current Fund. Such amounts are not recorded as revenue until collected. Accordingly, no
provision has been made to estimate that portion of receivables that are uncollectible. Taxes and payments in lieu of taxes
collected in advance are recorded as cash liabilities in the financial statements. GAAP requires revenues to be recognized in
the accounting period when they become measurable and available and in certain instances reduced by an allowance for
doubtful accounts.
Reserve for Uncollected Taxes – Reserve for Uncollected Taxes is required to provide assurance that cash collected for
taxes in the current year will provide sufficient cash flow to meet expected obligations. The minimum amount of Reserve for
Uncollected Taxes is determined on the percentage of collections experienced in the immediate preceding year, unless
allowable alternative methods are utilized. A Reserve for Uncollected Taxes is not established under GAAP.
21
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Advertising Costs - Advertising costs are charged against the appropriate budget line as they occur. The City does not
engage in direct-response advertising.
Encumbrances – Encumbrances are contractual orders outstanding at year end reported as expenditures through the
establishment of an encumbrance payable. Outstanding encumbrances at year end are reported as a cash liability in the
financial statements. Encumbrances do not constitute expenditures under GAAP.
Expenditures – Expenditures are recorded on the “budgetary” basis of accounting. Generally, expenditures are recorded
when an amount is encumbered for goods or services through the issuance of a purchase order in conjunction with the
encumbrance accounting system. Appropriation reserves covering unexpended appropriation balances are automatically
created at the end of each year and recorded as liabilities, except for amounts which may be canceled by the governing body.
Appropriations for principal and interest payments on general capital indebtedness are provided on the cash basis. GAAP
requires expenditures in the current (or general) fund, to be recognized in the accounting period in which the fund liability is
incurred, if measurable, except for un-matured interest on general long-term debt, which should be recognized when due.
Appropriation Reserves – Appropriations are available until lapsed at the close of the succeeding year to meet specific
claims, commitments or contracts incurred during the preceding fiscal year. Transfers are allowed between certain line items
during the first three months of the fiscal year. Lapsed appropriation reserves are recorded as other credits to income.
Appropriation Reserves do not exist under GAAP.
Inventories of Supplies - The cost of inventories of supplies are recorded as expenditures at the time the individual items are
purchased. The costs of inventories are not included on the balance sheets of the Current, Trust or General Capital Funds.
GAAP requires the cost of inventories to be reported as a current asset equally offset by a fund balance reserve.
Property Acquired for Taxes – Property Acquired for Taxes is recorded in the Current Fund at the assessed valuation when
the property was acquired and is subsequently updated for revaluations. The value of the property is fully reserved. GAAP
requires such property to be recorded as a fixed asset at market value on the date of acquisition.
Improvement Authorizations – Improvement Authorizations in the General Capital Fund represent the unexpended balance
of an ordinance appropriation. GAAP does not recognize unexpended balances of ordinances as liabilities.
Deferred Charges to Future Taxation (Funded and Unfunded) - Upon the authorization of general capital projects, the
City establishes deferred charges for the costs of the capital projects to be raised by future taxation. Funded deferred charges
relate to permanent debt issued, whereas unfunded deferred charges relate to temporary or non-funding of the authorized
costs of capital projects. The City may levy taxes on all taxable property within the City to repay the debt. Annually, the City
raises the debt requirements for that particular year in the Current Fund budget. In addition, deferred charges may result from
operating activities and are required to be raised by future taxation either in the succeeding year, within 3 years or within five
years, dependent on the statutory authority applicable to such charges. As the funds are raised by taxation, the deferred
charges are reduced. GAAP does not require the establishment of deferred charges to future taxation.
Compensated Absences and Post-Employment Benefits - Compensated absences for vacation, sick leave and other
compensated absences are recorded and provided for in the annual budget in the year in which they are paid, on a pay-as-you-
go basis. Likewise, no accrual is made for post-employment benefits, if any, which are also funded on a pay-as-you-go basis.
GAAP requires that the amount that would normally be liquidated with expendable financial resources to be recorded as an
expenditure in the operating fund and the remaining obligations be recorded as long-term obligations.
Net Pension and Net OPEB Liabilities - Had generally accepted accounting principles been followed, the City’s share of its
actuarially determined net pension liabilities for the Public Employees Retirement System (“PERS”), Police and Fire
Retirement System (“PFRS”) and other post-employment benefit plans would be required to be accrued on the City’s balance
sheet. Accounting practices prescribed by the Division of Local Government Services only require note disclosure of these
liabilities and related actuarial information. The City appropriates annually the amounts required to be paid in any fiscal year
in that year’s budget its share of PERS and PFRS obligations.
22
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Long-Term Obligations - General long-term debt is recognized as a liability of the General Capital Fund for the full
principal amount.
Leases - Under GASB Statement No. 87, lease commitments, including those with bargain purchase options, are required to
be recorded as lease liabilities at the present value of future lease payments, offset with a tangible asset or right-of-use asset as
applicable. Commitments for the purchase and ownership of capital assets are recorded as financed purchases reflected in the
amount of the liability and corresponding asset. In accordance with accounting practices prescribed by the Division, leases for
operating expenditures are not shown as liabilities and accordingly no corresponding asset is recorded. Leases for non-operating
expenditures for the acquisition of assets with useful lives exceeding five years may be recorded at historical cost as capital
leases or installment purchase agreements payable with offsetting deferred charges if there is either a transfer of ownership of
property or an option for ownership.
Reserves (Other than Reserve for Receivables) - Reserves, other than reserve for receivables, are considered liabilities, and
not a reservation of fund balance.
Reserves for Receivables – Receivables of the City, with the exception of certain intergovernmental receivables, are offset
on the balance sheet with a credit that is created to preserve the revenue recognition basis required by the Division’s
accounting policies. The reserve delays the recognition of these revenues until they are received in cash.
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.
Fund Balance - Fund equity represented on the financial statements consists solely of Fund Balance, which is not further
categorized with respect to reservations (portions of fund equity not available for appropriation for expenditure or legally
segregated for a specific future use) or designations (plans for future use of financial resources).
Use of Estimates - Management uses estimates and assumptions in preparing financial statements. Those estimates and
assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the
reported revenues and expenses. On an ongoing basis, management evaluates the estimates and assumptions based on new
information. Management believes that the estimates and assumptions are reasonable in the circumstances; however, actual
results could differ from those estimates.
General Fixed Assets - Accounting for Governmental Fixed Assets as promulgated by the Division requires the inclusion of
a statement of general fixed assets as part of the City’s basic financial statements. Fixed assets used in governmental
operations (general fixed assets) are accounted for in an account group identified as “General Fixed Assets” and are not
included within the records of any fund types. Purchases from the various funds for general fixed assets are recorded as
expenditures within the respective fund. Public domain (infrastructure) fixed assets consisting of certain improvements,
other than improvements to buildings, such as improvements to roads, bridges, curbs and gutters, streets and sidewalks and
drainage systems, are not capitalized. All fixed assets, except land, are valued at historical cost or estimated historical cost if
actual historical cost is not available. Expenditures for construction in progress are recorded in the General Capital Fund
against authorizations under which the project was approved until such time as the construction is completed and put into
operation. Fixed assets acquired through grants in aid or contributed capital have not been accounted for separately.
The City is required 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. The City has developed a
fixed assets accounting and reporting system based on an inspection and appraisal prepared by an independent appraisal firm.
In accordance with the accounting principles prescribed by the Division, no depreciation has been provided for in the
financial statements. GAAP requires the recording of infrastructure assets and requires capital assets be depreciated over
their estimated useful life unless they are either inexhaustible or are infrastructure assets reported using the modified
approach.
23
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Cash and Investments - New Jersey governmental units are required to deposit public funds in a public depository. Public
depositories are defined by statutes as any state or federally chartered bank, savings bank or an association located in New
Jersey or a state or federally chartered bank, savings bank or an association located in another state with a branch office in
New Jersey, the deposits of which are insured by the Federal Deposit Insurance Corporation (“FDIC”) and which receives or
holds public funds on deposit, but does not include deposits held by the State of New Jersey Cash Management Fund and
New Jersey Asset and Rebate Management Program (“NJARM”). N.J.S.A. 40A:5-15.1 provides a list of securities which
may be purchased by New Jersey municipal units. Cash Equivalents include certificate of deposits with a maturity date of
less than three (3) months. Also see Note 2 - Cash and Cash Equivalents and Investments.
The City is required to annually adopt a cash management plan and to deposit or invest its funds pursuant to the cash
management plan. The cash management plan adopted by the City requires it to deposit funds as permitted in N.J.S.A 40A:5-
15.1, so long as the funds are deposited in public depositories protected from loss under the provisions of the Governmental
Unit Deposit Protection Act (“GUDPA”). GUDPA was enacted in 1970 to protect governmental units from a loss of funds on
deposit with a failed banking institution in New Jersey and requires all public depositories pledge collateral, having a market
value of five percent of the average daily balance of collected public funds, to secure the deposits of governmental units. If a
public depository fails, the collateral it has pledged, plus the collateral of all other public depositories in the collateral pool, is
available to pay the full amount of their deposits to the governmental units.
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 Division in accordance with the Local Budget Law.
Budgets are adopted on the same basis of accounting utilized for the preparation of the City’s financial statements. The
budgetary requirements herein outlined are applicable to only the Current Fund, and not the Trust Fund, General Fixed Assets
or Capital Fund, except to the extent that statutes require the City to adopt annually a six-year capital plan. This plan allows
the governing body to expend or incur obligations for capital purposes only. Such projects under the plan must be adopted
through capital ordinance.
The City must adhere to procedures for adoption of its annual budget as established by the Division. These procedures
include statutory deadlines of: August 10 for introduction and approval and September 20 for adoption. These dates are
subject to extension by the Division with approval of the Local Finance Board. Appropriations within the adopted budget
cannot be modified until the final two months of the year at which time transfers between certain line items are allowed.
Transfers from appropriations excluded from “CAPS” are prohibited unless they are between debt service appropriations.
Under certain circumstances emergency authorizations and insertions of items of revenue and appropriation are allowed by
authorization of the governing body, subject to approval of the Division.
The City must prepare its budgets in compliance with applicable laws capping the amounts by which both the budgeted
appropriations and tax levy can be increased. A description of both “CAP” laws follows:
-
The 1977 Appropriation Cap is calculated using the formulas and provisions of N.J.S.A. 40A:4-45.1 through 4-
45.43a. The law was originally adopted in 1976 and was most recently amended in 2003. Under this law, the City is
permitted to increase its overall appropriations (with certain exceptions) by 2.5% or the “cost of living adjustment”
(COLA), whichever is less. The COLA is calculated based on the traditional Federal government inflation
calculation. The City can, when the COLA is less than or equal to 2.5%, increase its allowable inside-the-cap
spending to 3.5%, upon passage of a COLA Rate Ordinance.
-
The 2010 Levy Cap is calculated using the formulas and provisions of N.J.S.A 40A:4-45.44 through 45.47. It
establishes limits on the increase in the total City amount to be raised by taxation (tax levy). The core of the levy cap
formula is a 2% increase to the previous year’s amount to be raised by taxation, net of any applicable cap base
adjustments and emergency or special emergency appropriations.
Budgetary Comparison Information is presented in the basic financial statements as Exhibits A-2 and A-3.
24
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Financial Statements - The GASB Codification requires the financial statements of a governmental unit presented in its
general purpose financial statements to be in accordance with GAAP. The City presents the financial statements required by
the Division, which differ from the financial statements required by GAAP. These financial statements are listed in the table
of contents.
Comparative Data - Comparative data for the prior year has been presented in the accompanying balance sheets and
statements of operations in order to provide an understanding of changes in the City’s financial position and operations.
Comparative data is not presented in all statements because their inclusion would make certain statements unduly complex
and difficult to understand.
Reclassifications – Certain reclassifications have been made to the prior year financial statement presentation to correspond
to the current year’s format. These reclassifications had no effect on fund balance and changes in fund balance.
Reconciliation of Accounting Basis – As described throughout Note 1, substantial differences exist between GAAP and the
regulatory basis prescribed by the Division. Reconciliation between the two would not be meaningful or informative and
therefore is not provided herein.
NOTE 2.
CASH, CASH EQUIVALENTS AND INVESTMENTS
Custodial Credit Risk is the risk that in the event of a bank failure, the City’s cash deposits may not be returned to it or the
City will not be able to recover the value of its investments or collateral securities in the possession of an outside party.
Investments are exposed to custodial credit risk if they are uninsured, are not registered in the City’s name and are held by
either the counterparty or its trust department or agent, but not in the City’s name. To minimize custodial credit risk, 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 invested in deposits with the
New Jersey Cash Management Fund or the New Jersey Asset & Rebate Management Program (“NJARM”). As of June 30,
2023, and 2022, 79% and 87%, respectively, of the City’s investments and deposits were held in one financial institution.
The remaining funds were distributed among three financial institutions and investment pools. 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.
Foreign Currency Risk is the risk that changes in exchange rates will adversely affect deposits and deposits. None of the
City’s deposits and investments as of June 30, 2023 and 2022 are known to be held in foreign currency.
Credit Risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The City does not
have an investment policy regarding the management of credit risk.
2023
2022
FDIC Insured Deposits
500,000
$
500,000
$
GUDPA Insured Deposits
30,781,496
41,872,103
Government Investment Pools
Maturities less than One Year
NJ Asset & Rebate Management Program
952,929
918,366
NJ Cash Management Fund
503,805
486,046
Total Investments and Deposits
32,738,230
$
43,776,515
$
25
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 2.
CASH, CASH EQUIVALENTS AND INVESTMENTS (continued)
Concentration of Credit Risk - The City places no formal limit on the amount it may invest in any one issuer. New Jersey
Statutes limit municipal investments to those specified and summarily identified in the following paragraph.
Interest Rate Risk is the risk that changes in interest rates will adversely affect the fair value of an investment. 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.
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.
-
Local Finance Notice 2017-24 further authorizes local governments, such as the City, to invest in notes
issued by New Jersey municipalities, counties, fire districts and boards of education without prior Division
approval, so long as such investments are incorporated into a cash management plan.
-
Debt obligations from the following local government entities are statutorily authorized to be incorporated
into a cash management plan without being subject to a 397-day maturity limit: Parking Authorities,
Sewerage and Utilities Authorities, County Improvement Authorities, Pollution control Financing
Authority, certain Water Commissions, Municipal Port Authorities, Municipal Shared Service Energy
Authority as well as bonds issued pursuant to the Local Redevelopment.
Local government investment pools.
Deposits with the State of New Jersey Cash Management Fund.
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 by statute and (e) a master repurchase agreement providing for the custody and
security of collateral is executed.
GASB 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, 2023 and 2022 are invested in the NJ Cash Management Fund, or the NJARM Program, which are
both classified as Government Investment Pools with maturity periods of less than one year.
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
Act, 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, 2023 and 2022, the City has a balance of
$952,929 and $918,366, respectively, in the NJARM Program.
All investments in the New Jersey Cash Management Fund are governed by the regulations of the State of New Jersey
Division of Investment, which prescribe specific standards designed to insure the quality of investments and to minimize the
risks related to investments. Although the Division of Investment has never suffered a default of principal or interest on any
short-term security held within the New Jersey Cash Management Fund due to the bankruptcy of a securities issuer, it has
established a reserve as additional protection for the Other-than-State participants.
26
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 2.
CASH, CASH EQUIVALENTS AND INVESTMENTS (continued)
In addition to the Division of Investment 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
of the New Jersey Cash Management Fund, but instead has a net realizable interest in the joint value of the fund. As of June
30, 2023 and 2022, the City had a balance of $503,805 and $486,046, respectively, in the New Jersey Cash Management
Fund.
NOTE 3.
PROPERTY TAXES
In accordance with the accounting principles prescribed by the Division, receivables for property taxes and tax title liens 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. Since delinquent taxes and tax title liens are fully reserved, no provision has been made
to estimate that portion of the taxes receivable and tax title liens that are uncollectible. GAAP requires such revenue to be
recognized when they are available and measurable, reduced by an allowance for doubtful accounts.
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. Chapter 99 of the Public Laws of 1997 of the State of New Jersey authorized any municipality to have an
accelerated tax sale. An accelerated tax sale permits a municipality to have a tax sale when property taxes are unpaid after
the 11th day of the 11th month of each fiscal year. The City conducted an accelerated tax sale in the years ended June 30,
2023 and 2022. The true tax collection rate, including the proceeds of the accelerated tax sales for the years ended June 30,
2023 and 2022 was 99.98% and 99.04%, respectively. The underlying tax collection rate for the years ended June 30, 2023
and 2022 was 99.30% and 98.55%, respectively.
During fiscal year ended June 30, 2023 the City collected $4,522 from delinquent taxes which represented 13.27% of the
delinquent balances at June 30, 2022. For the fiscal year ended June 30, 2022, the City collected $24,984 from delinquent
taxes which represented 114% of the delinquent balances at June 30, 2021.
Taxes collected in advance are recorded as cash liabilities in the financial statements. As of June 30, 2023 and 2022, the
City’s prepaid taxes were $146,707 and $214,904, respectively.
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 following entities:
Union City Board of Education - 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 school district for the period from July 1 to June 30.
County of Hudson - The City is responsible for levying, collecting and remitting county taxes for the County of
Hudson. Operations is charged for the amount due to 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.
27
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 4.
MUNICIPAL DEBT
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. The term of bond anticipation notes, which are issued to
temporarily finance capital projects, 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. On or before the third anniversary date of the original note through the tenth anniversary date, a payment of
an amount at least equal to the first legally payable installment must be paid or retired.
The City has received loans and capital leases to fund various capital projects. Repayment terms, which are set by the lender,
cannot exceed the statutory period of usefulness as established by the Local Bond Law.
The City’s debt is summarized as follows:
A detail of bonds, notes and loans issued and outstanding follows:
2023
2022
Issued:
General Bonds
64,420,000
$
69,270,000
$
HCIA Lease
1,451,732
2,799,768
Green Acres
735,785
810,738
Capital Leases
1,181,923
1,330,959
BANS
22,793,000
23,340,000
Bonds, notes and loans
90,582,440
97,551,465
Authorized by not Issued:
Bonds and notes
6,126,577
6,351,864
Total Issued and Authorized but not Issued
96,709,017
$
103,903,329
$
2023
2022
$15,735,000 ERI Pension Bonds of 2002 due in annual
installments of $15,000 to $1,695,000 through
January 2033, bearing interest at 5.375% - 6.250%
9,510,000
$
9,825,000
$
$10,300,000 General Obligation Bonds of 2016 due
in annual installments of $540,000 to $890,000 through
July 2030, bearing interest at 2.5% - 3.0%
6,445,000
7,150,000
$18,805,000 Refunding Bonds of 2018 due in
annual installments of $340,000 to $3,875,000 through
November 2023, bearing interest at 4% - 5%
3,875,000
7,705,000
$37,845,000 General Obligation Bonds of 2021 due in
annual instalments of $2,855,000 to $7,145,000 from 8/1/24
through 8/1/2033, bearing interest rates of 0.05% to 2.25%
37,845,000
37,845,000
$6,745,000 Taxable General Obligation Bonds of 2021 due in
annual installments of $855,000 to $1,080,000 from 8/1/2024
through 8/1/2030, bearing interest rates of 1.55%
6,745,000
6,745,000
$4,766,625 HCIA Capital Leases of 2004 due in annual
installments of $150,525 to $585,375 through
January 2024, bearing interest at 5.33%
585,375
1,120,575
28
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 4.
MUNICIPAL DEBT (continued)
Continuation of bonds, notes and loans issued and outstanding:
2023
2022
$2,396,693 HCIA Capital Leases of 2006 due in annual
installments of $71,918 to $122,093 through
January 2024, bearing interest at 4.0% - 5.4%
240,841
$
469,974
$
$5,071,020 HCIA Capital Leases of 2011 due in annual
installments of $97,005 to $449,903 through
March 2024, bearing interest at 5.3% - 8.0%
625,516
1,209,219
$800,000 Green Trust Loan of 2011 due in annual
installments of $33,915 to $48,525 through
March 2031, bearing interest at 2%
344,872
387,086
$70,000 Green Trust Loan of 2011 due in annual
installments of $2,968 to $4,246 through
March 2031, bearing interest at 2%
30,176
33,869
$590,143 Green Trust Loan of 2014 due in annual
installments of $12,447 to $36,155 through
February 2034, bearing interest at 2%
360,737
389,783
$248,357 Capital Lease of 2021 due in annual
installments of $46,787 to $52,642 through
November 2026, bearing interest at 2.99%
201,570
248,357
$433,085 Capital Lease of 2020
177,952
261,901
$289,970 Capital Lease of 2019 due in annual
installments of $53,878 to $62,262 through
July 2024, bearing interest at 3.68%
122,313
180,231
$319,776 Capital Lease of 2021 due in annual
installments of $60,243 to $67,778 through
November 2026, bearing interest at 2.99%
259,533
319,776
$192,142 Capital Lease of 2019 due in annual
installments of $61,733 to $66,390 through
July 2022, bearing interest at 3.70%
-
66,390
$274,933 Capital Lease of 2021 due in annual
installments of $51,706 to $57,816 through
April 2026, bearing various interest rates
167,187
218,893
$35,411 Capital Lease of 2022 due in annual
installments of $6,507 to $7,630 through
September 2026, bearing various interest rates
28,234
35,411
$225,134 Capital Lease of 2022 due in annual
installments of $41,009 to $49,738 through
August 1, 2027, bearing various interest rates
225,134
Bond Anticipation Notes issued FY20 and FY21
and due FY21 and FY22, bearing interest at 1.5% - 2.5%
22,793,000
23,340,000
Total Debt Issued and Outstanding
90,584,463
$
97,553,487
$
29
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 4.
MUNICIPAL DEBT (continued)
The changes in debt for the years ended June 30, 2023 and 2022 are as follows:
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, 2023 is as follows:
BONDS ISSUED, AND AUTHORIZED BUT NOT ISSUED, BY ANOTHER PUBLIC ENTITY AND GUARANTEED
BY THE CITY
UNION CITY BOARD OF EDUCATION
In May 2018 the Union City Board of Education issued Hudson County Improvement Authority Lease Revenue Bonds, the
proceeds of which are being used in connection with the construction of a parking deck adjacent to a Union City Board of
Education school building. These bonds are guaranteed by the City. At June 30, 2023 and 2022, $9,250,000 and $9,725,000,
respectively, of these bonds were outstanding. Principal amounts are due in annual installments ranging from $375,000 to
$3,930,000 through June 2037, and bear interest at rates ranging from 3.76% to 5.00%. As guarantor, the City’s
responsibility is limited to the extent of the amounts outstanding in the event of a default. The City does not expect to be
responsible for any of the debt service payments on the bonds.
Balance
Balance
June 30, 2022
Issued
Cancelled
Paid
June 30, 2023
Short-Term:
Bond Anticipation Notes
23,340,000
$
-
$
-
$
547,000
$
22,793,000
$
Long-Term:
General Bonds and Notes
69,270,000
-
-
4,850,000
64,420,000
Capital Leases
4,130,727
225,134
-
1,722,206
2,633,655
Green Acres Loans
810,738
-
-
74,953
735,785
Authorized but Not Issued
6,351,864
-
225,287
-
6,126,577
Total
103,903,329
$
225,134
$
225,287
$
7,194,159
$
96,709,017
$
Balance
Balance
June 30, 2021
Issued
Cancelled
Paid
June 30, 2022
Short-Term:
Bond Anticipation Notes
13,596,000
$
10,000,000
$
-
$
256,000
$
23,340,000
$
Long-Term:
General Bonds and Notes
73,885,000
-
-
4,615,000
69,270,000
Capital Leases
4,934,857
878,477
-
1,682,607
4,130,727
Green Acres Loans
884,218
-
-
73,480
810,738
Authorized but Not Issued
16,351,864
(10,000,000)
-
-
6,351,864
Total
109,651,939
$
878,477
$
-
$
6,627,087
$
103,903,329
$
Year Ending
December 31,
Principal
Interest
Principal
Interest
Principal
Interest
Total
2023*
4,600,000
$
258,763
$
923,362
$
60,622
$
38,041
$
7,358
$
5,888,146
$
2024
4,830,000
1,655,202
1,195,367
76,985
77,224
13,571
7,848,349
2025
5,025,000
1,534,655
232,142
20,224
78,779
12,018
6,902,818
2026
5,210,000
1,406,015
233,046
11,464
80,362
10,435
6,951,322
2027
5,405,000
1,269,475
49,738
2,696
81,976
8,820
6,817,705
2028-2032
30,510,000
3,912,724
-
-
325,440
20,344
34,768,508
2033-2034
8,840,000
186,319
-
-
53,963
1,083
9,081,365
64,420,000
$
10,223,153
$
2,633,655
$
171,991
$
735,785
$
73,628
$
78,258,212
$
* Six Month Transiton Year: July 1, 2023 through December 31, 2023
General Bonds
Capital Leases
Green Acres Trust Loans
30
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 4.
MUNICIPAL DEBT (continued)
SUMMARY OF STATUTORY DEBT CONDITION - ANNUAL DEBT STATEMENT
At June 30, 2023 the equalized valuation basis of the City was $4,363,598,116. The summarized statement of debt condition,
which was prepared in accordance with the required method of setting up the Annual Debt Statement, indicated a statutory
net debt of 1.736%.
BORROWING POWER UNDER N.J.S.A. 40A:2-6 AS AMENDED
At June 30, 2022 the equalized valuation basis of the City was $4,581,513,915. The summarized statement of debt condition,
which was prepared in accordance with the required method of setting up the Annual Debt Statement, indicated a statutory
net debt of 1.963%.
BORROWING POWER UNDER N.J.S.A. 40A:2-6 AS AMENDED
NOTE 5.
FUND BALANCES APPROPRIATED
Fund balance of the City consists of cash surplus and non-cash surplus. The City can anticipate fund balance to support its
budget of the succeeding year, however, the use of non-cash surplus is subject to the prior written consent of the Division.
Fund balances at June 30, 2023 and 2022 appropriated and included as anticipated revenue in the succeeding year’s budget
were as follows:
* Succeeding year budget is a 6 month Transition Year beginngin July 1, 2023 and ending December 31, 2023.
Gross Debt
Deductions
Net Debt
Local School Debt
-
$
-
$
-
$
General Debt
103,325,362
18,789,007
84,536,355
103,325,362
$
18,789,007
$
84,536,355
$
3-1/2% of Equalized Valuation Basis
170,387,991
$
Net Debt
84,536,355
Remaining Borrowing Power
85,851,636
$
Gross Debt
Deductions
Net Debt
Local School Debt
-
$
-
$
-
$
General Debt
109,497,602
19,550,000
89,947,602
109,497,602
$
19,550,000
$
89,947,602
$
3-1/2% of Equalized Valuation Basis
160,352,987
$
Net Debt
89,947,602
Remaining Borrowing Power
70,405,385
$
Fund Balance
Utilized in Budget
Year
June 30,
of Succeeding Year
2021
4,209,405
$
467,457
$
2022
6,471,744
3,000,000
31
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 6.
RETIREMENT SYSTEMS
Substantially all City employees participate in the State of New Jersey, Public Employees Retirement System (PERS), Police
and Fireman’s Retirement System of New Jersey (PFRS) or the Defined Contribution Retirement Program (DCRP).
STATE-MANAGED PENSION PLANS – PERS
The PERS is a cost-sharing multiple-employer defined benefit pension plan administered by the State of New Jersey,
Division of Pensions and Benefits. For additional information about PERS, please refer to Division of Pension and Benefit’s
Comprehensive Annual Financial Report (CAFR) which can be found at www.state.nj.us/treasury/pensions/annrprts.shtml.
The vesting and benefit provisions are set by N.J.S.A. 43:15A. PERS provides retirement, death and disability benefits. All
benefits vest after ten years of service, except for medical benefits, which vest after 25 years of service or under the disability
provisions of PERS.
The following represents the membership tiers for PERS:
Tier
Definition
1
Members who were enrolled prior to July 1, 2007
2
Members who were eligible to enroll on or after July 1, 2007 and prior to November 2, 2008
3
Members who were eligible to enroll on or after November 2, 2008 and prior to May 22, 2010
4
Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011
5
Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits of 1/55th of final average salary for each year of service credit is available to tiers 1 and 2
members upon reaching age 60 and to tier 3 members upon reaching age 62. Service retirement benefits of 1/60th of final
average salary for each year of service credit is available to tier 4 members upon reaching age 62 and tier 5 members upon
reaching age 65. Early retirement benefits are available to tiers 1 and 2 members before reaching age 60, tiers 3 and 4 with 25
or more years of service credit before age 62 and tier 5 with 30 or more years of service credit before age 65. Benefits are
reduced by a fraction of a percent for each month that a member retires prior to the age at which a member can receive full
early retirement benefits in accordance with their respective tier. Tier 1 members can receive an unreduced benefit from age
55 to age 60 if they have at least 25 years of service. Deferred retirement is available to members who have at least 10 years
of service credit and have not reached the service retirement age for the respective tier.
Net Pension Liability - GASB requires participating employers in PERS to recognize their proportionate share of the
collective net pension liability, collective deferred outflows of resources, collective deferred inflows of resources and
collective pension expense. The Division does not require the City to recognize their proportionate share of the collective net
pension liability, collective deferred outflows of resources, collective deferred inflows of resources or collective pension
expense, however, disclosure of such amounts is required.
Although the Division of Pensions and Benefits administers one cost-sharing multiple-employer defined benefit pension plan,
separate (sub) actuarial valuations are prepared to determine the actuarially determined contribution rate by group. Following
this method, the measurement of the collective net pension liability, deferred outflows of resources, deferred inflows of
resources, and pension expense are determined separately for each individual employer of the State and local groups of the
plan. The allocation percentages for each group of the plan as of June 30, 2022 and 2021 are based on the ratio of each
employer’s contributions to total employer contributions of the group for the fiscal years ended June 30, 2022 and 2021. At
June 30, 2022 and 2021, the City’s net pension liability for PERS, including the City’s proportionate share, was as follows:
Year Ended
Net Pension
June 30,
Rate
Change
Liability
2022
0.14268%
-0.00480%
21,532,456
$
2021
0.14748%
-0.00118%
17,471,377
$
Proportionate Share
32
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 6.
RETIREMENT SYSTEMS (continued)
Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate –
The following presents the City’s proportionate share of the net pension liability of the as of June 30, 2022 and 2021,
calculated using the discount rate as disclosed in the table and paragraphs that follow as well as what the collective net
pension liability would be if it was calculated using a discount rate that is 1% lower or 1% higher than the current rate:
Actuarial Assumptions - The total pension liability for the June 30, 2022 and June 30, 2021 measurement dates were
determined by actuarial valuations as of July 1, 2021 and 2020, respectively, which were rolled forward to June 30, 2022 and
2021, respectively. These actuarial valuations used the following actuarial assumptions, applied to all periods in the
measurement:
Mortality – For the June 30, 2022 and 2021 Measurement Dates, preretirement mortality rates were based on the Pub-2010
General Below-Median Income Employee mortality table with an 82.2% adjustment for males and 101.4% adjustment for
females, and with future improvement from the base year of 2010 on a generational basis. Post-retirement mortality rates
were based on the Pub-2010 General Below-Median Income Healthy Retiree mortality table with a 91.4% adjustment for
males and 99.7% adjustment for females, and with future improvement from the base year of 2010 on a generational basis.
Disability retirement rates used to value disabled retirees were based on the Pub-2010 Non-Safety Disabled Retiree mortality
table with a 127.7% adjustment for males and 117.2% adjustment for females, and with future improvement from the base
year of 2010 on a generational basis. Mortality improvement is based on Scale MP-2021. The actuarial assumptions used in
the July 1, 2021 valuation weas based on the results of an actuarial experience study for the period July 1, 2018 to June 30,
2021. The actuarial assumptions used in the July 1, 2020 valuation weas based on the results of an actuarial experience study
for the period July 1, 2014 to June 30, 2018.
Discount Rate – The discount rate used to measure the total pension liability was 7.00% as of June 30, 2022 and 2021. The
projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at
the current member contribution rates and that contributions from employers and the nonemployer contributing entity will be
based on 100% of the actuarially determined contributions for the State employer and 100% of actuarially determined
contributions for local employers. Based on those assumptions, the plan’s fiduciary net position was projected to be available
to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on
plan investments was applied to all projected benefit payments in determining the total pension liability.
Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of return on plan
investments (7.00% at June 30, 2022 and June 30, 2021) is determined by the State Treasurer, after consultation with the
Directors of the Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. The
long-term expected rate of return was determined using a building block method in which best-estimate ranges of expected
future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic rates of return for each major asset class included in PERS target asset allocations as of June 30, 2022 and 2021
are summarized in the table on the following page:
Rate
Amount
Rate
Amount
1% Decrease
6.00%
27,662,899
$
6.00%
23,792,473
$
Current Discount Rate
7.00%
21,532,456
7.00%
17,471,377
1% Increase
8.00%
16,315,203
8.00%
12,107,032
2022
2021
Investment
Measurement
Rate of
Date of
Price
Wage
Through 2026
Thereafter
Return
June 30, 2022
2.75%
3.25%
2.75-6.55%
3.00-7.00%
7.00%
June 30, 2021
2.75%
3.25%
2.00-6.00%
3.00-7.00%
7.00%
Inflation Rate
Based on Years of Service
Salary Increases
33
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 6.
RETIREMENT SYSTEMS (continued)
Deferred Outflows and Inflows of Resources - The following presents a summary of changes in the collective deferred
outflows of resources and deferred inflows of resources for the years ended June 30, 2022 and 2021:
Amounts reported at June 30, 2022 and 2021 as net deferred outflows of resources and deferred inflows of resources related
to pensions will be recognized in pension expense as follows:
Long-Term
Long-Term
Expected
Expected
Target
Real Rate of
Target
Real Rate of
Asset Class
Allocation
Return
Allocation
Return
U.S. Equity
27.00%
8.12%
27.00%
8.09%
Non-U.S. Developed Markets Equity
13.50%
8.38%
13.50%
8.71%
Emerging Markets Equity
5.50%
10.33%
5.50%
10.96%
Private Equity
13.00%
11.80%
13.00%
11.30%
Real Estate
8.00%
11.19%
8.00%
9.15%
Real Assets
3.00%
7.60%
3.00%
7.40%
High Yield
4.00%
4.95%
2.00%
3.75%
Private Credit
8.00%
8.10%
8.00%
7.60%
Investment Grade Credit
7.00%
3.38%
8.00%
1.68%
Cash Equivalents
4.00%
1.75%
4.00%
0.50%
U.S. Treasuries
4.00%
1.75%
5.00%
0.95%
Risk Mitigation Strategies
3.00%
4.91%
3.00%
3.35%
June 30, 2022
June 30, 2021
Deferred
Deferred
Net Deferred
Deferred
Deferred
Net Deferred
Outflows
Inflows
Outflow /
Outflows
Inflows
Outflow /
of Resources
of Resources
(Inflow)
of Resources
of Resources
(Inflow)
Changes of Assumptions
66,714
$
3,224,261
$
(3,157,547)
$
90,991
$
6,219,923
$
(6,128,932)
$
Difference Between Expected
and Actual Experience
155,411
137,051
18,360
275,546
125,074
150,472
Net Difference Between
Projected and Actual Earnings
on Pension Plan Investments
891,209
-
891,209
-
4,602,420
(4,602,420)
Changes in Proportion
37,926
1,506,868
(1,468,942)
170,024
1,111,197
(941,173)
1,151,260
$
4,868,180
$
(3,716,920)
$
536,561
$
12,058,614
$
(11,522,053)
$
June 30, 2022
June 30, 2021
Year Ended
Year Ended
June 30,
June 30,
2023
(2,079,002)
$
2022
(4,489,180)
$
2024
(1,059,182)
2023
(3,205,264)
2025
(516,542)
2024
(2,185,443)
2026
1,126,900
2025
(1,642,804)
2027
(2,475)
2026
639
(3,716,920)
$
(11,522,053)
$
As at June 30, 2021
As at June 30, 2022
34
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 6.
RETIREMENT SYSTEMS (continued)
Contribution Policy - The contribution policy for PERS is set by N.J.S.A. 43:15A and requires contributions by active
members and their employers. Such contributions may be amended by State legislation. Employers’ contribution amounts
are based on an actuarially determined rate. The annual employer contributions include funding for basic retirement
allowances and non-contributory death benefits. Members contribute at a uniform rate pursuant to the provisions of Chapter
78, P.L. 2011.
Members contribution rates were 7.50% effective starting July 1, 2018. Member contributions include funding for basic
retirement allowances and contributory death benefits. Contributions made by the City and its employees for the previous
three years are as follows:
STATE-MANAGED PENSION PLANS – PFRS
The PFRS is a cost-sharing multiple-employer defined benefit pension plan administered by the State of New Jersey,
Division of Pensions and Benefits. For additional information about PFRS, please refer to Division of Pension and Benefit’s
Comprehensive Annual Financial Report (CAFR) which can be found at www.nj.gov/treasury/pensions/financial-
reports.shtml.
The vesting and benefit provisions are set by N.J.S.A. 43:16A. PFRS provides retirement, death and disability benefits. All
benefits vest after ten years of service, except disability benefits, which vest after 4 years of service. The following
represents the membership tiers for PERS:
Tier
Definition
1
Members who were enrolled prior to May 22, 2010
2
Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011
3
Members who were eligible to enroll on or after June 28, 2011
Service retirement benefits 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. Members may seek
special retirement after achieving 25 years of creditable service, in which benefits would equal 65% (tiers 1 and 2 members)
and 60% (tier 3 members) of final compensation plus 1% for each year of creditable service over 25 years but not to exceed
30 years. Members may elect deferred retirement benefits 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.
Net Pension Liability - GASB Statement No. 68, Accounting and Financial Reporting for Pensions, requires participating
employers in PFRS to recognize their proportionate share of the collective net pension liability, collective deferred outflows
of resources, collective deferred inflows of resources and collective pension expense. The Division does not require the City
to recognize their proportionate share of the collective net pension liability, collective deferred outflows of resources,
collective deferred inflows of resources or collective pension expense, however, disclosure of such amounts is required.
Although the Division of Pensions and Benefits administers one cost-sharing multiple-employer defined benefit pension plan,
separate (sub) actuarial valuations are prepared to determine the actuarially determined contribution rate by group. Following
this method, the measurement of the collective net pension liability, deferred outflows of resources, deferred inflows of
resources, and pension expense are determined separately for each individual employer of the State and local groups of the
plan.
Base Wages
Amount
As a
As a
Year Ended
Subject to
Paid or
Percentage of
Amount
Percentage of
June 30,
Contributions
Charged
Base Wages
Contributed
Base Wages
2023
12,427,377
$
1,860,888
$
14.97%
932,055
$
7.50%
2022
11,477,619
$
1,795,493
$
15.64%
862,956
$
7.50%
2021
10,202,450
$
1,693,538
$
16.60%
765,186
$
7.50%
Employee Contribution
City Contribution
35
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 6. RETIREMENT SYSTEMS (continued)
The allocation percentages for each group of the plan as of June 30, 2022 and 2021 are based on the ratio of each employer’s
contributions to total employer contributions of the group for the fiscal years ended June 30, 2022 and 2021.
Under N.J.S.A. 43:16A-15 the City is responsible for its own contributions based on actuarially determined amounts, except
where legislation was passed that legally obligated the State if certain circumstances occurred. The amounts contributed on
behalf of the City under this legislation are considered to be a special funding situation as defined by GASB Statement No.
68 and the State is treated as a non-employer contributing entity. Since the City does not contribute under this legislation
directly to the plan (except for employer specified financed amounts), there is no net pension liability to report in the
financial statements of the City related to this legislation. However, the City must disclose the State’s total proportionate
share of the collective net pension liability that is associated with the City. At June 30, 2022 and 2021, the City’s net pension
liability for PFRS, including the special funding situation described above and the City’s proportionate share, was as follows:
Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The
following presents the City’s proportionate share of the net pension liability as of June 30, 2022 and 2021, calculated using
discount rates of 7.00% and 7.00%, respectively, as well the City’s proportionate share of the net pension liability if
calculated using discount rates that are 1% lower or 1% higher than the current rate:
Actuarial Assumptions - The total pension liability for the June 30, 2022 and June 30, 2021 measurement dates were
determined by actuarial valuations as of July 1, 2021 and 2020, respectively, which were rolled forward to June 30, 2022 and
2021, respectively. These actuarial valuations used the following actuarial assumptions:
Mortality – For the June 30, 2022 and 2021 Measurement Dates, employee mortality rates were based on the PubS-2010
amount-weighted mortality table with a 105.6% adjustment for males and 102.5% adjustment for females. For healthy
annuitants, mortality rates were based on the PubS-2010 amount-weighted mortality table with a 96.7% adjustment for males
and 96.0% adjustment for females. Disability rates were based on the PubS-2010 amount-weighted mortality table with a
152.0% adjustment for males and 109.3% adjustment for females. Mortality improvement is based on Scale MP-2021. The
actuarial assumptions used in the July 1, 2021 and July 1, 2020 valuations were based on the results of an actuarial
experience study for the period July 1, 2018 to June 30, 2021 and July 1, 2013 to June 30, 2018, respectively.
State of N.J.
Year
(nonemployer)
Ended
Net Pension
On-Behalf
June 30,
Rate
Change
Liability
of City
Total
2022
0.54762%
-0.01753%
62,682,244
$
11,155,602
$
73,837,846
$
2021
0.56515%
0.00577%
41,307,638
$
11,617,765
$
52,925,403
$
City (employer)
Proportionate Share
Rate
Amount
Rate
Amount
1% Decrease
6.00%
86,006,808
$
6.00%
62,724,356
$
Current Discount Rate
7.00%
62,682,244
7.00%
41,307,638
1% Increase
8.00%
43,264,431
8.00%
23,480,533
2022
2021
Investment
Measurement
Rate of
Date of
Price
Wage
Return
June 30, 2022
2.75%
3.25%
7.00%
June 30, 2021
2.75%
3.25%
7.00%
Salary Increases
Inflation Rate
Based on Years of Service
All Future Years
3.25-16.25%
3.25-15.25%
36
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 6. RETIREMENT SYSTEMS (continued)
Discount Rate – The discount rate used to measure the total pension liability was 7.00% as of June 30, 2022 and 2021. The
projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at
the current member contribution rates and that contributions from employers and the nonemployer contributing entity will be
based on 100% of the actuarially determined contributions for the State employer and 100% of actuarially determined
contributions for the local employers. Based on these assumptions, the plan’s fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of
return on plan investments was applied to all projected benefit payments to determine the total pension liability.
Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of return on plan
investments (7.00% at both June 30, 2022 and June 30, 2021) is determined by the State Treasurer, after consultation with the
Directors of the Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. The
long-term expected rate of return was determined using a building block method in which best-estimate ranges of expected
future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of
arithmetic rates of return for each major asset class included in PFRS target asset allocations as of June 30, 2022 and 2021
are summarized in the following table:
Deferred Outflows and Inflows of Resources - The following presents a summary of changes in the collective deferred
outflows of resources and deferred inflows of resources (excluding employer specific amounts) for the years ended June 30,
2022 and 2021:
Long-Term
Long-Term
Expected
Expected
Target
Real Rate of
Target
Real Rate of
Asset Class
Allocation
Return
Allocation
Return
U.S. Equity
27.00%
8.12%
27.00%
8.09%
Non-U.S. Developed Markets Equity
13.50%
8.38%
13.50%
8.71%
Emerging Markets Equity
5.50%
10.33%
5.50%
10.96%
Private Equity
13.00%
11.80%
13.00%
11.30%
Real Estate
8.00%
11.19%
8.00%
9.15%
Real Assets
3.00%
7.60%
3.00%
7.40%
High Yield
4.00%
4.95%
2.00%
3.75%
Private Credit
8.00%
8.10%
8.00%
7.60%
Investment Grade Credit
7.00%
3.38%
8.00%
1.68%
Cash Equivalents
4.00%
1.75%
4.00%
0.50%
U.S. Treasuries
4.00%
1.75%
5.00%
0.95%
Risk Mitigation Strategies
3.00%
4.91%
3.00%
3.35%
June 30, 2022
June 30, 2021
Deferred
Deferred
Net Deferred
Deferred
Deferred
Net Deferred
Outflows
Inflows
Outflow /
Outflows
Inflows
Outflow /
of Resources
of Resources
(Inflow)
of Resources
of Resources
(Inflow)
Changes of Assumptions
171,787
$
7,890,456
$
(7,718,669)
$
219,802
$
12,379,710
$
(12,159,908)
$
Difference Between Expected
and Actual Experience
2,837,166
3,840,140
(1,002,974)
471,270
4,948,228
(4,476,958)
Net Difference Between
Projected and Actual Earnings
on Pension Plan Investments
5,739,852
-
5,739,852
-
17,602,528
(17,602,528)
Changes in Proportion
2,136,049
2,312,741
(176,692)
3,463,493
526,070
2,937,423
10,884,854
$
14,043,337
$
(3,158,483)
$
4,154,565
$
35,456,536
$
(31,301,971)
$
June 30, 2022
June 30, 2021
37
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 6. RETIREMENT SYSTEMS (continued)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized
in pension expense as follows:
Contribution Policy - The contribution policy for PFRS is set by N.J.S.A. 43:16A and requires contributions by active
members and their employers. Such contributions may be amended by State legislation. Employers’ contribution amounts are
based on an actuarially determined rate which includes the normal cost and unfunded accrued liability. The annual employer
contributions include funding for basic retirement allowances and non-contributory death benefits. Members contribute at a
uniform rate pursuant to the provisions of Chapter 78, P.L. 2011. Members contributed at a rate of 10%. Member contributions
include funding for basic retirement allowances and contributory death benefits. Contributions made by the City and its
employees for the previous three years are as follows:
PFRS AND PERS – REGULATORY BASIS DISCLSOURE
N.J.A.C. 5:30-6.1 allows municipalities to include in their annual audits the most recent available audited GASB 68 financial
information published by the New Jersey Division of Pension and Benefits. The information utilized for disclosure in this
report of audit was dated June 30, 2023 and June 30, 2022.
PERS AND PFRS FIDUCIARY NET POSITION
The State of New Jersey issues publicly available financial reports that include the financial statements, required
supplementary information, as well as detailed information about the fiduciary net position of the PERS and PFRS. These
financial statements were prepared in accordance with accounting principles generally accepted in the United States. This
report may be obtained by writing to the State of New Jersey, Department of the Treasury, Division of Pensions and Benefits,
P.O. Box 295, Trenton, New Jersey 08625-0295 or accessed at www.state.nj.us/treasury/pensions.
PERS AND PFRS DEFERRAL
Legislation known as Chapter 19 of the Public Laws of 2009 was enacted and effective on March 17, 2009 allowing for an
adjustment in the contributions the City was required to make to the PERS and PFRS during the year ended June 30, 2009.
Under this legislation, local governments were given the option to defer exactly 50% of their required pension contribution as
certified by the State of New Jersey, Division of Pensions and Benefits or pay the full amount of the required contribution for
the year ended June 30, 2009.
The City elected the 50% deferral. Under the terms of the pension deferral the City was obligated to commence repayment of
the entire deferral in 15 amortized annual installments, commencing with the year ended June 30, 2012. These payments are
added to the regular pension bills. Payments made during the years ended June 30, 2023 and 2022, inclusive of principal and
interest, were $361,117 and $375,298, respectively. The payment due for the pension deferral, inclusive of principal and
interest, in the year ended June 30, 2024 is $366,097.
Year Ended
Year Ended
June 30,
June 30,
2023
(2,957,909)
$
2022
(10,020,955)
$
2024
(1,890,288)
2023
(7,522,165)
2025
(1,800,708)
2024
(6,454,544)
2026
3,761,401
2025
(6,364,965)
2027
36,249
2026
(802,856)
Thereafter
38,002
Thereafter
(136,486)
(3,158,483)
$
(31,301,971)
$
Base Wages
Amount
As a
As a
Year Ended
Subject to
Paid or
Percentage of
Amount
Percentage of
June 30,
Contributions
Charged
Base Wages
Contributed
Base Wages
2023
19,987,255
$
7,417,128
$
37.11%
1,998,725
$
10.00%
2022
20,036,228
$
6,893,372
$
34.40%
2,004,373
$
10.00%
2021
19,605,247
$
6,589,173
$
33.61%
1,960,525
$
10.00%
City Contribution
Employee Contribution
38
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 6. RETIREMENT SYSTEMS (continued)
DEFINED CONTRIBUTION RETIREMENT PROGRAM
The Defined Contribution Retirement Plan (DCRP), established under the provisions of Chapter 92, P.L. 2007 and Chapter
103, P.L. 2007 and expanded under the provisions of Chapter 89, P.L. 2008 and Chapter 1, P.L. 2010, is a multiple employer
defined contribution plan administered by the State of New Jersey, Division of Pensions and Benefits.
The DCRP provides eligible members with a tax-sheltered, defined contribution retirement benefit, along with life insurance
and disability coverage. Individuals eligible for membership in the DCRP include (a) state or local officials elected or appointed
to new office on or after July 1, 2007, (b) employees enrolled in PERS on or after July 1, 2007 or PFRS after May 21, 2010
who earn salary in excess of established maximum compensation limit and (c) employees otherwise eligible for PERS on or
after November 2, 2008 or PFRS after May 21, 2010 that earn below the minimum PERS or PFRS salary but more than $5,000
annually.
State and local government employers contribute 3% of the employees’ base salary. Active members contribute 5.5% of
base salary. Vesting occurs upon commencement of the third year of membership. Should the vesting period not be reached,
contributions will be refunded to the appropriate contributing parties. Employer matching contributions and earnings are only
available after the age of 55. Distributions render the member retired and ineligible for future participation in any State-
administered plans. Otherwise, distributions are available at any time as lump sum, fixed term or life annuity.
Members are covered by employer-paid life insurance in the amount of 1 ½ times the annual base salary on which DCRP
contributions was based. Members are also eligible for 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 until the age of
70 so long as the member remains disabled and has not begun receiving retirement annuity payments.
DEFERRED COMPENSATION PLAN (Unaudited)
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 and AXA Equitable, is a tax-deferred supplemental retirement program
that allows City employees to contribute a portion of their salaries, before federal taxes, to a retirement account. Contributions
are made through payroll deductions, and individuals are 100% vested.
Amounts deferred under the plans are not available to employees until termination, retirement, death or unforeseeable
emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and
all income attributable to those amounts, property or rights are solely the property and rights of the individual contributors and
are not subject to the claims of the City’s general creditors.
NOTE 7.
OTHER POST-EMPLOYMENT BENEFITS
Plan Description and Benefits Provided - The City administers a single-employer, defined benefit post-employment health
insurance plan for its eligible retirees, spouses and dependents.
In accordance with City ordinances, contracts and/or policies, the City provides lifetime medical benefits which include
medical, prescription drug, dental and vision benefits, and reimbursement of the Medicare Part B premiums, to City employees
who were hired prior to October 28, 2013 and who retire under the following conditions:
After twenty-five years of membership in a state or locally administered system.
After fifteen years or more of service and are age 62 or older.
Upon a disability retirement, if eligible.
39
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 7.
OTHER POST-EMPLOYMENT BENEFITS (continued)
For employees hired after October 28, 2013, the City provides lifetime medical benefits which include medical, prescription
drug, dental and vision benefits, and reimbursement of the Medicare Part B premiums, 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 65 or older.
Upon a disability retirement, if eligible.
Plan Membership - Plan membership data applicable to the last 3 valuation years were as follows:
Retiree Contributions - P.L. 2011 c.78 sets forth contribution rates for retirees of the State and local employers, such as the
City. Contributions to the plan are not required for current and future retirees with twenty or more years of creditable service
with the PERS or PFRS as of June 28, 2011. Any employee who retires with less than twenty years of creditable service with
the PERS or PFRS as of June 28, 2011 are required to contribute toward the cost of their postemployment benefits.
Contributions are based on a percentage of postemployment health care premiums, which vary based on healthcare coverage
tier and pension benefit amounts.
Funding Policy - At June 30, 2023 and 2022, the plan was unfunded. In accordance with the regulatory basis of accounting
prescribed by the Division, payments for benefits are contributed by the City on a pay-as-you-go basis. For the years ended
June 30, 2023, 2022 and 2021 the City contributed $14,326,866, $13,208,000, and $12,757,000, respectively.
Under GASB 75 the City would recognize the cost of other postemployment benefits (OPEB) in the year when the employee
services are received and report the accumulated liability for OPEB on the face of its financial statements. Under the
regulatory basis of accounting prescribed by the Division, the City is not required to recognize the cost of OPEB in the year
when the employee services were received or report the accumulated liability on the face of its financial statements.
However, disclosure of such amounts is required.
Net OPEB Obligation - The Total OPEB Liability as of June 30, 2023, based on a discount rate of 3.55% and the Entry Age
Normal cost method, is $375,885,249, which includes liabilities for retirees and actives as detailed below. The Total OPEB
Liability as of June 30, 2022, based on a discount rate of 3.55% and the Entry Age Normal cost method, is $368,747,306,
which includes liabilities for retirees and actives as detailed below. The components of the net OPEB liability of the City at
June 30, 2022 and 2021 were as follows:
2022
2020
2018
Active employees
319
346
315
Retirees
422
388
403
741
734
718
2023
2022
Retiree OPEB Liability
263,106,333
$
268,049,225
$
Active Employee OPEB Liability
112,778,916
100,698,081
Total OPEB liability
375,885,249
368,747,306
OPEB Plan fiduciary net position
-
-
Net OPEB liability
375,885,249
$
368,747,306
$
Plan Fiduciary Net Position as a
Percentage of total OPEB liability
0.00%
0.00%
40
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 7.
OTHER POST-EMPLOYMENT BENEFITS (continued)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate - The following presents the City’s net OPEB
liability as of June 30, 2023 and 2022, respectively, as well what the City’s net OPEB liability would be if it were calculated
using a discount rate 1% lower and 1% higher than the current discount rates of 3.55%, each year:
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates - The following presents the City’s
net OPEB liability as of June 30, 2022 and 2021, respectively, as well what the City’s net OPEB liability would be if it were
calculated using a healthcare cost trend rate 1% lower and 1% higher than the current healthcare cost trend rates:
Actuarial Assumptions - The total OPEB liability as of June 30, 2023 was based on the valuation results as of June 30, 2022
and rolled forward to the June 30, 2023 measurement date. total OPEB liability as of June 30, 2022 was determined by an
actuarial valuation as of June 30, 2022. The following actuarial assumptions applied to all periods in the measurements:
OPEB Expense and Deferred Outflows and Deferred Inflows of Resources - The OPEB expense at June 30, 2023 and 2022
was as follows:
1% Decrease
2.55%
441,611,063
$
2.55%
433,489,109
$
Current Discount Rate
3.55%
375,885,249
3.55%
368,747,306
1% Increase
4.55%
324,291,267
4.55%
317,978,149
2022
2023
2023
2022
1% Decrease
318,040,726
$
315,090,326
$
Current Healthcare Cost Trend Rate
375,885,249
368,747,306
1% Increase
450,997,774
438,101,600
2023
2022
Actuarial cost method
Entry Age Normal Cost Method
Entry Age Normal Cost Method
Salary increase
4% per year
4% per year
Discount rate
3.55%
3.55%
Healthcare cost trend rates
Pre-65
Year 1 trend
5.30%
5.30%
Ultimate trend
Decreasing 0.15% to 0.30% per year to an ultimate rate of
4.50% for 2026 and later years
Decreasing 0.15% to 0.30% per year to an ultimate rate of
4.50% for 2026 and later years
Post-65
Year 1 trend
4.50%
4.50%
Ultimate trend
4.50%
4.50%
Mortality: Pre-Retirement ….......... PUB-2010 (G or S) Headcount-Weighted Healthy
Employee Male / Female Mortality Projected with Scale
MP-2021.
PUB-2010 (G or S) Headcount-Weighted Healthy
Employee Male / Female Mortality Projected with Scale
MP-2021.
Mortality: Post-Retirement …........ PUB-2010 (G) Headcount-Weighted Healthy Annuitant
Male / Female Mortality Projected with Scale MP-2021.
PUB-2010 (G) Headcount-Weighted Healthy Annuitant
Male / Female Mortality Projected with Scale MP-2021.
Mortality: Disabled ….................... PUB-2010 (G or S) Headcount-Weighted Disabled
Retiree Male / Female Mortality Projected with Scale MP-
2021.
PUB-2010 (G or S) Headcount-Weighted Disabled
Retiree Male / Female Mortality Projected with Scale MP-
2021.
2023
2022
Employer service cost
8,332,768
$
11,847,567
$
Recognition of changes in TOL due to
assumption changes and actuarial experience
(13,969,196)
(13,969,196)
Interest cost
13,132,041
9,324,640
OPEB expense
7,495,613
$
7,203,011
$
41
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 7.
OTHER POST-EMPLOYMENT BENEFITS (continued)
The OPEB deferred outflows and deferred inflows of resources at June 30, 2023 and 2022 were as follows:
Deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as
follows:
Changes in Net OPEB Liability and Related Ratios - The following table shows the changes to the City’s net OPEB liability
to the plan and related ratios as of June 30, 2023 and 2022:
2023
2022
Deferred Inflows of Resources:
Differences between expected and actual
demographic experience
(2,756,469)
$
(5,512,937)
$
Changes of assumptions
(49,344,904)
(65,988,847)
Deferred Outflows of Resources
Differences between expected and actual
demographic experience
7,564,542
10,086,056
Changes of assumptions
2,909,699
5,819,400
(41,627,132)
$
(55,596,328)
$
June 30,
June 30,
2024
(13,969,199)
2023
(13,969,196)
$
2025
(14,122,429)
2024
(13,969,199)
2026
(13,535,504)
2025
(14,122,429)
2027
-
2026
(13,535,504)
2028
-
2027
-
Thereafter
-
Thereafter
-
(41,627,132)
$
(55,596,328)
$
As at June 30, 2023
As at June 30, 2022
2023
2022
Total OPEB liability - beginning of year
368,747,306
$
428,460,615
$
Service Cost
8,332,768
11,847,567
Interest Cost
13,132,041
9,324,640
Contributions made
(14,326,866)
(13,208,000)
Actuarial assumption changes
-
(80,285,086)
Actuarial demographic (gain) or loss
-
12,607,570
Total OPEB liability - end of year
375,885,249
$
368,747,306
$
Plan fiduciary net position - beginning of year
-
$
-
$
Net change in plan fiduciary net position
-
-
Plan fiduciary net position - end of year
-
$
-
$
Net OPEB liability - end of year
375,885,249
$
368,747,306
$
Funded ratio
0.00%
0.00%
Covered payroll
32,414,632
$
31,513,847
$
Net OPEB liability as a percentage of covered payroll
1160%
1170%
42
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 7.
OTHER POST-EMPLOYMENT BENEFITS (continued)
Participation in State Health Benefits Plan – Special Funding Situation
Plan Description – The City has 164 members of the State Health Benefits Program (SHBP), a cost-sharing, multiple-
employer defined benefit post-employment healthcare plan, with a special funding situation administered by the State of New
Jersey Division of Pensions and Benefits. SHBP was established in 1961 under N.J.S.A. 52:14-17.25 et seq., to provide
health benefits to State employees, retirees and their dependents. Rules governing the operation and administration of the
program are found in Title 17, Chapter 9 of the New Jersey Administrative Code. SHBP provides medical, prescription
drugs, mental health/substance abuse, and Medicare Part B reimbursement to retirees and their covered dependents. The
SHBP was extended to employees, retirees and dependents of participating local public employers in 1964. Local employers
must adopt a resolution to participate in the SHBP.
The State Health Benefits Commission is the executive body established by statute to be responsible for the operation of the
SHBP. The State of New Jersey Division of Pensions and Benefits issues a publicly available financial report that includes
financial statements and required supplementary information for the SHBP. That report may be obtained by writing to: State
of New Jersey Division of Pensions and Benefits, P.O. Box 295, Trenton, NJ 08625-0295 or by visiting their website at
www.state.nj.us/treasury/pensions.
Funding Policy – Participating employers are contractually required to contribute based on the amount of premiums
attributable to their retirees. Post-retirement medical benefits under the plan have been funded on a pay-as-you-go basis since
1994. Prior to 1994, medical benefits were funded on an actuarial basis. Contributions to pay for the health premiums of
participating retirees in the SHBP are billed to the Borough on a monthly basis.
GASB Statement 75, Accounting and financial Reporting for Postemployment Benefit Plans Other Than Pensions, (“GASB
75”), is effective for fiscal years beginning after June 15, 2017, and replaces the requirements of GASB Statement 45,
Accounting and Financial Reporting by Employers for Postemployment Benefit Plans Other Than Pensions. Under GASB
75, the City would recognize the cost of other postemployment benefits (OPEB) in the year when the employee services are
received and report the accumulated liability for OPEB on the face of its financial statements. Under the regulatory basis of
accounting prescribed by the Division, the Borough is not required to recognize the cost of OPEB in the year when the
employee services were received, or report the accumulated liability on the face of its financial statements. However,
disclosure of such amounts is required.
Special Funding Situation
Under Chapter 330, P.L. 1997, the State shall pay the premium or periodic charges for the qualified local police and
firefighter retirees and dependents equal to 80 percent of the premium or periodic charge for the category of coverage elected
by the qualified retiree under the State managed care plan or a health maintenance organization participating in the program
providing the lowest premium or periodic charge. The State also provides funding for retiree health benefits to survivors of
local police officers and firefighters who die in the line of duty under Chapter 271, P.L.1989.
Therefore, the City is considered to be in a special funding situation as defined by GASB Statement No. 75 and the State is
treated as a non-employer contributing entity. Since the City does not contribute under this legislation directly to the plan,
there is no net OPEB liability, deferred outflows of resources or deferred inflows of resources to report in the financial
statements of the local participating employers related to this legislation. The State’s share of the net OPEB liability as of
June 30, 2022 and 2021 associated with the City is $33,656,011 and $38,497,120, respectively, which represents 164 plan
members, each year, constituting 0.997567% and 0.996984%, respectively, of the State’s total proportionate share of the net
OPEB liability.
Regulatory Basis Disclosure – N.J.A.C. 5:30-6.1 allows local units to disclose the most recently available information as it
relates to the New Jersey Division of Pension and Benefits reporting on GASB 75. As of the date of this report the
information for the period ended June 30, 2023 was not available insofar as it related to the State Plan and the Special
Funding Situation, therefore the information dated June 30, 2022 is disclosed.
43
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 8.
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 if hired before October 28, 2013, and 5 terminal leave days for every year of service if hired
after October 28, 2013. These compensated absences and terminal leave may be taken as time off or paid at a later date 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 amount required to be paid in that year’s budget and no liability
is accrued at June 30, 2022 and 2021. As of June 30, 2023, and 2022 the total accumulated compensated absence liability
was $7,283,609 and $11,793,577, respectively.
NOTE 9.
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.
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.
Workers Compensation - In 1984 the City established a self-insured workers’ compensation obligation program in
accordance with the New Jersey Statute Chapter 40:10. The City dissolved this self-insured workers’ compensation
obligation program in 2009 for a fully insured plan through the New Jersey Intergovernmental Insurance Fund. The City,
however, still has exposure for claims from the prior self-insured worker’s compensation obligation program.
Health Benefits - The City provides health insurance coverage to eligible employees through a self-insured program.
Coverage is available through Horizon Blue Cross Blue Shield New Jersey, and the program is administered through a third
party administrator. The City records expenditures for health insurance claims on a pay-as-you-go basis. At June 30, 2023
and 2022, the City estimated $4,352,865 and $3,684,780, respectively, in health insurance claims were incurred but not
reported based on a 3 month run out period. In accordance with the regulatory basis of accounting prescribed by the
Division, no amount for claims incurred but not reported have been recorded in the financial statements as of June 30, 2023
and 2022.
New Jersey Intergovernmental Insurance Fund - The City entered into an agreement to participate in the New Jersey
Intergovernmental Insurance Fund (“NJIIF”). 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 23 members. 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.
NOTE 10.
CLEARING ACCOUNT
The City maintains a claims account, or a cash clearing account, from which bills are paid for all funds.
NOTE 11.
FIXED ASSETS
In accordance with accounting practices prescribed by the Division, and as further discussed in Note 1, no depreciation has
been provided for, and fixed assets acquired through grants in aid or contributed capital have not been accounted for
separately. The City had the following investment balance and activity in general fixed assets as of and for the years ended
June 30, 2023 and 2022:
44
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 11.
FIXED ASSETS (continued)
NOTE 12.
DEFERRED CHARGES TO BE RAISED IN SUCCEEDING BUDGETS
Certain expenditures are required to be deferred to budgets of succeeding years. Budget over-expenditures are required to be
raised in the next year’s budget. The City has received permission to budget payment of the $6,050,000 budget deficit
emergency authorization over a period of 5 years, beginning in October, 2020. All other deferred charges are funded as
required by statute, or by special Local Finance Notice directive, as is the case with the COVID-19 revenue loss. At June 30,
2023 and 2022, deferred charges shown on the balance sheets of the Current Fund are as follows:
Balance
Balance
June 30, 2022
Additions
Reclass
Deletions
June 30, 2023
Land
20,351,200
$
-
$
-
$
-
$
20,351,200
$
Buildings & Improvements
50,932,213
392,196
-
-
51,324,409
Machinery & Equipment
15,317,057
792,389
-
-
16,109,446
86,600,470
$
1,184,585
$
-
$
-
$
87,785,055
$
Balance
Balance
June 30, 2021
Additions
Reclass
Deletions
June 30, 2022
Land
11,228,600
$
-
$
9,122,600
$
-
$
20,351,200
$
Buildings & Improvements
61,446,099
1,810,830
(9,122,600)
3,202,116
50,932,213
Machinery & Equipment
14,370,447
2,774,310
-
1,827,700
15,317,057
87,045,146
$
4,585,140
$
-
$
5,029,816
$
86,600,470
$
Transition Year
Balance to
Balance
Results of
Budget
Balance
2023 Budget
Succeeding
June 30, 2022
Current Year
Reclass
Appropriations
June 30, 2023
Appropriation
Budgets
Overexpenditures - Current Fund
4,504,944
$
1,458,476
$
4,504,944
$
1,458,476
$
-
$
1,458,476
$
Cancelled Grants Receivable
498,916
-
498,916
-
-
-
COVID-19 Revenue Loss
1,380,800
-
345,300
1,035,500
-
1,035,500
Emergency Authorizations
8,010,000
-
(400)
2,306,000
5,703,600
-
5,703,600
Special Emergency Authorizations (40A:4-53)
Tax Map
124,000
(7,300)
38,900
77,800
-
77,800
Revaluation
1,000,000
-
200,000
800,000
Retirement Benefits
3,388,996
995,000
7,700
1,210,320
3,181,376
1,210,000
1,971,376
18,907,656
$
2,453,476
$
-
$
9,104,380
$
12,256,752
$
1,210,000
$
10,246,752
$
2023 Budget
Balance to
Balance
Results of
Budget
Balance
Appropriation
Succeeding
June 30, 2021
Current Year
Reclass
Appropriations
June 30, 2022
As Introduced
Budgets
Overexpenditures - Current Fund
2,901,704
$
4,504,944
$
-
2,901,704
$
4,504,944
$
4,504,944
$
-
$
Cancelled Grants Receivable
997,836
-
-
498,920
498,916
498,916
-
COVID-19 Revenue Loss
1,726,000
-
-
345,200
1,380,800
345,200
1,035,600
Emergency Authorizations
10,315,400
2,305,400
8,010,000
2,305,400
5,704,600
Special Emergency Authorizations (40A:4-53)
Tax Map
155,600
-
31,600
124,000
38,900
85,100
Revaluation
-
1,000,000
-
1,000,000
Retirement Benefits
3,140,091
1,292,597
-
1,043,692
3,388,996
1,123,398
2,265,598
19,236,631
$
6,797,541
$
-
$
7,126,516
$
18,907,656
$
8,816,758
$
9,090,898
$
45
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 13.
INTERFUND TRANSACTIONS
Interfunds receivable remained on the balance sheets of the fund financial statements at June 30, 2023 and 2022. The
interfund balances are between the Current Fund and the Federal and State Grant Fund, CDA Trust, Other Trust and Animal
Control Trust. These interfunds are the and are the result of a reclassification of reclassifications of expenditures at year end
for which a transfer could not be made on time. As of June 30, 2023, total interfunds of $11,864 are due to the Current Fund.
As of June 30, 2022, total interfunds of $154,925 were due to the Current Fund and total interfunds of $69,537 are due from
the Current Fund to other funds. The City liquidated all other interfund balances by June 30, 2023 and 2022.
NOTE 14.
RELATED PARTY TRANSACTIONS
The Grace Theatre Workshop, Inc.
The Grace Theatre Workshop, Inc. (“Grace Theatre”) receives CDBG funding passed through the City. Grace Theatre was
founded by one of the City’s commissioners. The amount of CDBG funding passed through to Grace Theatre for the years
ended June 30, 2023 and 2022 were not material to the financial statements.
Union City Board of Education
The Union City Board of Education (the “Board”) is a Type I School District, therefore, bonds and notes authorized by the
Board are general obligations of the City and are reported on the balance sheet of the City’s General Capital Fund and are
accordingly included in the summary of municipal debt. The City budgets the principal and interest payments of the Board’s
obligations as they become due. These obligations are funded by the City through an amount to be raised by taxation called
“addition to local district school tax”, less any regular school debt service aid received from the State of New Jersey. For the
years ended June 30, 2023 and 2022, no amounts were required to be budgeted.
No additional Board bonds or notes were authorized or issued during the years ended June 30, 2023 and 2022.
The City has agreements with the Board in which the City is to receive reimbursement for the lease of the recreation center,
snow removal, solid waste pick up, special resource officer, crossing guards, off duty police officers and pool expenses.
During the years ended June 30, 2023 and 2022, the City received $6,243,801 and $5,062,662, respectively, for such
reimbursements. As of June 30, 2023 and 2022, the City has receivables from the Board of $87,020 and $1,553,240,
respectively, for prior year accrued budget revenues. As described in Note 1, the Board is considered a component unit of the
City.
NOTE 15.
ECONOMIC DEPENDENCY
The City is a recipient of State Aid. During the years ended June 30, 2023 and 2022, State Aid accounted for 34% and 30%,
respectively, of the City’s realized general revenues as identified in Exhibit A-2. Included in this aid is 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 requirements, orders and oversight that the Director of the Division
(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. For the years ended June 30, 2023 and
2022, the City received $38,170,500,000 and $26,500,000, respectively, in various forms of Transitional Aid from the State
of New Jersey. $5,000,000 and $-0-, respectively, is receivable from the State as of June 30, 2023 and 2022.
46
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 16.
TAX ABATEMENTS
The City has entered into payment in lieu of taxes (PILOT) agreements with local entities to provide property tax abatements
through certain programs authorized by State statutes. These programs include the Long-Term Tax Exemption Law
(N.J.S.A. 40A:20 et seq) and the Five-year Exemption and Abatement Law (N.J.S.A. 40A:21 et seq). The City has granted
these property tax abatements to foster the development of affordable housing within the City. Under the abatement
agreements, taxes are generally calculated and billed at an amount of 6% - 15% of the entities’ net rental income.
In addition, the City has entered into PILOT agreements with local entities whose exemption from all or part of its tax
assessment is authorized by N.J.S.A. 54:4-3.3 Exemptions of public property, N.J.S.A. 54:4-3.6 Tax exempt property, and
N.J.S.A. 54:4-4 Certain municipal land extending into another county. For the years ended June 30, 2023 and 2022 the City
collected $486,367 and $519,649, respectively, in PILOT agreements, and abated property taxes of approximately
$2,094,133 and $2,000,000, respectively, in accordance with the terms of the individual abatement agreements.
NOTE 17.
CONTINGENT LIABILITIES
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.
LITIGATION
The City is a defendant in a number of lawsuits, none of which are unusual for a municipality of its size and scope of
operation. The City is also engaged in activities, such as police protection and public works construction, which could result
in future litigation with possible significant monetary exposure to the City. Because many lawsuits are still in the discovery
stage, the City’s Attorneys are unable to determine the probability of a successful defense to them at this time. In the opinion
of the City's Attorneys the potential claims against the City not covered by insurance policies would not materially affect the
financial condition of the City.
GRANTS
The City participates in several federal, state and local 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 federal and state grants received and expended in fiscal year
June 30, 2022 and 2021 were subject to the Uniform Guidance and State of New Jersey OMB Circular 15-08 which mandates
that grant revenues and expenditures be audited in conjunction with the City’s annual audit. In addition, the federal, state and
local grant programs are also subject to compliance and financial audits by the grantor agencies or their representatives. As
of June 30, 2023 and 2022, the City does not believe that any material liabilities will result from such audits.
SERVICE AGREEMENTS
NORTH HUDSON SEWERAGE AUTHORITY
The City has entered into a service agreement with the North Hudson Sewerage Authority, (the “NHSA”) to provide
sewerage services to City residents. The NHSA also provides sewerage services to the communities of Hoboken,
Weehawken, and West New York, through separate service agreements. The obligation of the City with respect to its current
service agreement pertains to service charges and annual charges attributable to the City, as described below:
Service Charges - The NHSA charges users of its system with respect to all sewage treated or disposed of by the NHSA 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.
47
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 17.
CONTINGENT LIABILITIES (continued)
Such service charges are established at rates estimated to be sufficient to provide for all amounts necessary to 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 its general bond resolution, provided, however, that the NHSA may
charge service charges which are less than sufficient to comply with the requirements referred to above if each of the
constituent municipalities gives its written consent to such lesser service charges. For the years ended June 30, 2023 and
2022, the rates charged for sewer services were sufficient to comply with the requirements referred to above.
Annual Charges - Annual charges are based upon the application of a formula. 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. 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 constituent municipalities. The most recent determination by the NHSA of the allocation of the annual flow
is as follows: Union City 34%, Hoboken 30%, West New York 27%, and Weehawken 9%.
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. 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. There were no amounts due from the City for the fiscal years ended June 30, 2023 and 2022. The NHSA
estimates that no amounts will be due from the City for Transition Year Ending December 31, 2023.
NORTH HUDSON REGIONAL FIRE AND RESCUE
On October 1, 1998, the municipalities of North Bergen, Union City, Weehawken and West New York formed an Agreement
in order to establish a joint meeting pursuant to the Consolidated Municipal Services Act, N.J.S.A. 40:48B-1 et seq. (the
“Act”). The term of the Agreement expires September 30, 2023, but may be subject to earlier termination pursuant to the
Act. The entity created by the formation of this joint meeting is known as the North Hudson Regional Fire and Rescue (the
“NHRFR”). On December 30, 1998, the Town of Guttenberg was admitted to participate in the NHRFR. The purpose of the
NHRFR is to provide for the joint operation of fire protection, rescue and emergency services, and other related
governmental services.
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.
Required Contributions by the City - The NHRFR is supported principally by annual contributions from its constituent
municipalities. The City’s allocable share is based on each of the four original participating municipalities’ applicable share
of the combined fiscal year 1998 fire budgets. Since Guttenberg was admitted after this allocation was decided on, it
contributes at an alternatively determined amount. The annual contribution share is subject to an increase based on the
percentage of increase of the total fire and rescue related appropriations over the base year. For the years ended June 30,
2022 and 2021, the City contributed $19,449,302 and $19,422,141, respectively, to the NHRFR.
Guarantee of Debt - This capital debt is payable and secured by revenues of the NHRFR. As additional security, each of the
municipalities participating in the NHRFR unconditionally guaranteed their percentage share of debt service on the capital
debt. 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. For the years ended June 30, 2022 and 2021 the City was not
required to contribute any amount above its percentage share of debt service for the capital debt.
48
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
NOTE 17.
CONTINGENT LIABILITIES (continued)
As of December 31, 2022 and 2021 the NHRFR had the following capital debt outstanding:
NOTE 18.
SUBSEQUENT EVENTS
Management has evaluated subsequent events through December 28, 2023, the date which the financial statements were
available to be issued. The following material subsequent events have been noted:
On September 6, 2023, the City adopted an ordinance appropriating $3,300,000 for the acquisition of real property within the
City for the purpose of providing 24 units of affordable housing and other City usage. The City authorized bonds and notes of
$3,300,000 to finance the acquisition.
On November 8, 2023, the City adopted an ordinance appropriating $7,000,000 in funding from the State Transitional Aid
Program for the acquisition of certain capital equipment and the completion of various capital improvements
On December 19, 2023, the City adopted a $779,411 special emergency appropriation for the payment of contractually required
severance liabilities in and for the City.
The City sold notes through the HCIA pooled note financing program, Series 2023 B-1, dated July 25, 2023, in the amount of
$7,038,000 at an interest rate of 5.00%, and Series 2023 B-2 emergency notes, also dated July 25, 2023, in the amount of
$1,210,000 at an interest rate of 6.25%. The 2023 B-1 and B-2 notes mature July 24, 2024. The notes were issued to roll over
the remaining portion of the HCIA Series 2022 B-1 and 2022 B-2 notes.
Change in Fiscal Year
On July 25, 2023, the City adopted an ordinance authorizing a change in its fiscal year from one operating July 1 to June 30,
annually, to one operating from January 1 to December 31, annually. The City will revert to a calendar fiscal year beginning
January 1, 2024. In order to transition the reversion, a six month “transition year” is required covering the period July 1, 2023
through December 31, 2023. The City has adopted the transition year budget and will receive a statutory audit for this transition
year.
December 31,
December 31,
2022
2021
Capital Lease Payable
1,870,000
$
3,615,000
$
Revenue Lease Payable
4,755,000
6,910,000
Loan Payable
1,273,431
1,838,895
7,898,431
$
12,363,895
$
49
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CITY OF UNION CITY
REPORT OF AUDIT
STATISTICAL SECTION
(unaudited)
CITY OF UNION CITY
ROSTER OF OFFICIALS IN OFFICE ON JUNE 30, 2023
JULY 1, 2022 THROUGH JUNE 30, 2023
Term
Title
Name
Expires
Bond
Mayor and Commissioner of the
Department of Public Safety …..............................Brian P. Stack …........................................................
May 17, 2026
Commissioner of the Department of:
Public Affairs ….................................................... Lucio P. Fernandez …...............................................
May 17, 2026
Parks and Recreation …......................................... Celin J. Valdivia …....................................................
May 17, 2026
Public Works …..................................................... Wendy Grullon …......................................................
May 17, 2026
Revenue and Finance ….........................................Maryury A. Martinetti …...........................................
May 17, 2026
Acting City Clerk ….................................................. Hilda I. Rosario
Corporation Counsel …............................................. Donald Scarinci
Tax Collector ….........................................................Sonia Schulman ….........................................................................................
1,000,000
$
Chief Financial Officer / Treasurer…........................ Tammy Zucca …............................................................................................
1,000,000
$
Judge …..................................................................... Lilia A. Munoz …...................................................... December 31, 2025
1,000,000
$
Judge…...................................................................... Carlos H. Acosta, Jr. ….............................................
May 14, 2025
1,000,000
$
Court Director …....................................................... Gustav John Schlaier ….................................................................................
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.
50
Table 1
CITY OF UNION CITY
STATISTICAL SECTION (UNAUDITED)
FOR THE FISCAL YEARS ENDED JUNE 30, 2023 AND 2022
COMPARATIVE SCHEDULES OF OPERATIONS AND CHANGES IN FUND BALANCE-CURRENT FUND
Amount
Percent
Amount
Percent
Revenue and Other Income Realized:
Miscellaneous Revenue Anticipated
89,907,770
$
42.49%
80,769,266
$
40.41%
Receipts from Delinquent Taxes
4,522
0.00%
24,984
0.01%
Receipts from Current Taxes
120,297,094
56.85%
114,811,339
57.44%
Non-Budget Revenues
721,901
0.34%
444,328
0.22%
Other Credits to Income
661,861
0.31%
3,817,847
1.91%
211,593,148
100.00%
199,867,764
100.00%
Expenditures:
Budget Appropriations
175,221,717
83.55%
166,970,235
81.97%
School and County Taxes
33,943,828
16.19%
34,274,254
16.83%
Other Charges
546,288
0.26%
2,461,926
1.21%
209,711,833
100.00%
203,706,415
100.00%
Change in Operations, net of Surplus Utilized
1,881,315
(3,838,651)
Adjustments to Income: Deferred Charges
of Budget of Succeeding Year(s)
995,000
6,100,990
Fund Balance, July 1
6,471,744
4,209,405
Fund Balance, June 30
9,348,059
$
6,471,744
$
June 30, 2022
June 30, 2023
51
Table 2
CITY OF UNION CITY
STATISTICAL SECTION (UNAUDITED)
FIVE-YEAR HISTORY OF TAX RATE AND APPORTIONMENT OF TAX RATE
Year Ended
Total
Local
June 30,
Tax Rate
Municipal
County
School
2023
7.688
5.482
1.220
0.986
2022
7.411
5.232
1.185
0.994
2021
7.385
5.194
1.188
1.003
2020
7.301
5.152
1.137
1.012
2019
7.103
4.898
1.185
1.020
Rates are per $100 of assessed valuation.
County Tax includes County Open Space
Municipal Tax includes Municipal Library Tax
FIVE-YEAR HISTORY OF TAX LEVIES AND COLLECTIONS
Table 3
Year Ended
Collection
June 30,
Tax Levy
Collections
Percentage
2023
119,154,909
$
119,127,987
$
99.98%
2022
114,513,871
113,682,453
99.27%
2021
112,709,909
112,689,174
99.98%
2020
109,252,437
108,013,309
98.87%
2019
107,198,009
106,539,953
99.39%
FIVE-YEAR HISTORY OF DELINQUENT TAXES AND TAX TITLE LIENS
Table 4
Year Ended
Delinquent
Percent of
June 30,
Liens
Taxes
Total
Tax Levy
2023
32,573
$
20,458
$
53,031
$
0.04%
2022
29,551
4,522
34,073
0.03%
2021
26,661
21,847
48,508
0.04%
2020
23,678
1,600,742
1,624,420
1.49%
2019
66,445
33,430
99,875
0.09%
52
Table 5
CITY OF UNION CITY
STATISTICAL SECTION (UNAUDITED)
FIVE-YEAR HISTORY OF PROPERTY ACQUIRED BY TAX TITLE LIEN LIQUIDATION
Year Ended
June 30,
Amount
2023
-
$
2022
-
2021
-
2020
-
2019
-
FIVE-YEAR HISTORY OF FUND BALANCES - CURRENT FUND
Table 6
Utilized in
Year Ended
Budget of
June 30,
Fund Balance
Succeeding Year
2023
9,348,059
$
-
$
*
2022
6,471,744
3,275,535
2021
4,209,405
467,457
2020
2,342,305
1,244,796
2019
3,054,684
2,037,735
* Subsequent year is a 6 month transition year.
53
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CITY OF UNION CITY
REPORT OF AUDIT
SUPPLEMENTARY DATA SECTION
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CITY OF UNION CITY
REPORT OF AUDIT
SUPPLEMENTARY DATA SECTION:
CURRENT FUND SCHEDULES
EXHIBIT A-4
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF CASH - TREASURER
Ref.
Balance, June 30, 2022
A
8,702,729
$
3,368,073
$
Increased by Receipts:
Miscellaneous Revenues Not Anticipated
A-2
624,101
$
-
$
Change Fund
A-5
432
-
Marriage Licenses
A-6
822
-
Tax Collections - Delinquent Taxes
A-7
4,619
Tax Collections - Current Taxes
A-7
118,885,833
Tax Overpayments
A-8
209,523
Revenue Accounts Receivable
A-10
66,634,910
-
Interfunds
A-11 / A-27
18,782,246
1,000,000
Veterans and Sr. Citizens Deductions
A-12
25,167
-
Other Receivables
A-14
362,502
-
Other Intergovernmental Payables
A-16
751,837
-
Liquor License Retirement
A-17
13,050
-
Prepaid Taxes
A-18
146,707
-
Grants Receivable
A-25
-
3,479,298
Unappropriated Grants
A-28
-
1,621,859
206,441,749
6,101,157
215,144,478
9,469,230
Decreased by Disbursements:
Current Budget Appropriations
A-3
132,775,313
-
Tax Overpayments
A-8
216,296
-
Interfunds
A-11 / A-27
26,238,580
788,217
Other Receivables
A-14
1,010
-
Appropriation Reserves
A-15
10,291,880
-
Other Intergovernmental Payables
A-16
791,361
-
Local School District Taxes Payable
A-19
15,418,637
-
County Taxes Payable
A-20
18,525,191
-
Accounts Payable
A-21
582,783
-
Special Emergency Notes Paid by Budget
A-24
3,340,000
-
Grants Appropriated
A-26
-
8,114,545
208,181,051
8,902,762
Balance, June 30, 2023
A
6,963,427
$
566,468
$
State and Federal Grants Fund
Current Fund
54
EXHIBIT A-5
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF CHANGE FUND
Ref.
Balance, June 30, 2022
830
$
Decreased by:
Cash Disbursed
A-4
432
Balance, June 30, 2023
A
398
$
SCHEDULE OF DUE FROM STATE OF NJ - MARRIAGE LICENSES
EXHIBIT A-6
Ref.
Balance, June 30, 2022
-
$
Increased by:
Fiscal Year Accrual
A-2
1,683
1,683
Decreased by:
Cash Receipts
A-4
822
Balance, June 30, 2023
A
861
$
55
EXHIBIT A-7
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY
Senior Citizens
Balance
Added
2023
and Veterans
Transferred to
Balance
Year
June 30, 2022
Taxes
Tax Levy
2021-2022
2022-2023
Deductions
Tax Title Liens
Cancellations
June 30, 2023
2022 and Prior
4,522
$
-
$
-
$
-
$
4,619
$
(97)
$
-
$
-
$
-
$
.
2023
-
-
119,154,909
214,904
118,885,833
27,250
3,022
3,442
20,458
4,522
$
-
$
119,154,909
$
214,904
$
118,890,452
$
27,153
$
3,022
$
3,442
$
20,458
$
A
A-18
A-4
A-12
A-13
A
Analysis of Property Tax Levy:
Delinquent
Current
Tax Yield:
2021-2022 Collections
-
$
214,904
$
General Purpose Tax
116,957,843
$
2022-2023 Collections
4,619
118,885,833
Regional Efficiency Aid Program (REAP)
1,999,758
Senior Citizen and Veteran Deductions
(97)
27,250
Added Taxes (N.J.S.A. 54:4-63.1 et. seq.)
496,678
4,522
$
119,127,987
$
119,454,279
A-2
A-2
Reduction due to Tax Appeals
299,370
119,154,909
$
Tax Levy
Local District School Tax
A-19
15,418,637
$
County Taxes
A-20
18,093,447
County Open Space Taxes
A-20
352,316
Due to County for Added Taxes
A-20
79,428
Amount to be Raised by Taxes
A-2
83,439,033
Added and Omitted Assessments
417,250
Difference to Levy as Assessed
1,354,798
119,154,909
$
Collections
56
EXHIBIT A-8
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF TAX OVERPAYMENTS
Ref.
Balance, June 30, 2022
A
8,634
$
Increased by:
Reclassed from Tax Collections for:
County Tax Appeals
15,764
$
Stat Tax Appeals
161,541
Cash Overpayments
32,218
A-4
209,523
218,157
Decreased by:
Cash Disbursements
A-4
216,296
Balance, June 30, 2023
A
1,861
$
SCHEDULE OF DUE FROM PROPERTY OWNERS - RELOCATION ASSISTANCE
EXHIBIT A-9
Ref.
Balance, June 30, 2022
A
11,552
$
Increased by:
Billings
113,726
Balance, June 30, 2023
A
125,278
$
57
EXHIBIT A-10
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE
Balance
Balance
June 30, 2022
Accruals
Collections
Other
Cancelled
June 30, 2023
Licenses:
Alcoholic Beverage
-
$
228,190
$
228,190
$
-
$
-
$
-
$
Other
-
133,639
131,956
1,683
-
-
Fees and Permits
-
209,170
209,170
-
-
-
Fines and Costs Municipal Court
144,439
1,875,748
1,859,441
-
-
160,746
Interest and Costs on Taxes
-
214,537
214,537
-
-
-
Interest on Investments and Deposits
-
968,181
968,181
-
-
-
Wedding Fees
-
34,239
34,239
-
-
-
City Share of Police Details
-
129,772
-
129,772
-
-
Public Telephone Commissions
-
103,582
103,582
-
-
-
Cable Franchise Fees
-
194,921
194,921
-
-
-
Payment in Lieu of Taxes:
Union Plaza Apartments
-
337,585
337,585
-
-
-
Palisade Urban Renewal Assoc.
-
43,321
43,321
-
-
-
Holy Rosary
-
29,845
29,845
-
-
-
Horizon Heights
-
15,460
15,460
-
-
-
Serv Properties
7,822
939
705
-
7,822
234
Suede Promotions
-
20,000
20,000
-
-
-
Monastery Redevelopment Group LL
-
39,451
39,451
-
-
-
Consolidated Municipal
-
5,621,655
-
5,621,655
-
-
Energy Receipts Taxes
-
16,828,507
15,617,207
1,211,300
-
-
Transitional Aid
-
22,500,000
22,500,000
-
-
-
Transitional Aid - Additional
-
10,000,000
5,000,000
-
-
5,000,000
Transitional Aid - DPW Road Project
-
5,670,000
5,670,000
-
-
-
Municipal Relief Fund Aid
-
1,275,415
1,275,415
-
-
-
Uniform Construction Code Fees
-
1,614,674
1,614,674
-
-
-
Union City Board of Education:
Lease Recreational Center
-
425,000
425,000
-
-
-
Solid Waste Removal
522,906
522,906
1,045,812
-
-
-
Off Duty Police Officers
14,820
100,000
114,820
-
-
-
47th Street Pool
-
136,000
136,000
-
-
-
Police Services
230,241
436,843
667,084
-
-
-
School Crossing Guards
-
2,429,444
2,429,444
-
-
-
Police Services - SLEO
785,273
727,388
1,425,641
-
-
87,020
North Hudson Community
Action Health Center Lease
-
30,364
30,364
-
-
-
Sale of Building
-
2,469,225
2,469,225
-
-
-
Capital Surplus
-
432,000
-
432,000
-
-
Interfund - CDBG Trust Fund
-
146,035
-
146,035
-
-
Interfund - Grant Fund
-
8,890
-
8,890
-
-
Emergency Medical Services
-
1,084,601
1,084,601
-
-
-
Reserve for Debt Service
-
156,698
-
156,698
-
-
Five Year Abatement Program
-
699,039
699,039
-
-
-
American Rescue Plan Act / Coronavirus
State and Local Fiscal Recovery Funds (SLFRF)
COVID-19 Health Insurance Incr
-
1,000,000
-
1,000,000
-
-
1,705,501
$
78,893,264
$
66,634,910
$
8,708,033
$
7,822
$
5,248,000
$
A
A-2, A-4
Intergovernmental Receivable
A, A-2
5,000,000
$
Revenue Accounts Receivable
A
248,000
5,248,000
$
Qualified Bonds Paid By State
6,832,955
$
A-3
Marriage Licenses from State
1,683
A-6
Interfunds:
Prior Balance Anticipated
154,925
A-11
Police Details
129,772
A-11
Reserve for Debt Service
156,698
A-11
Capital Fund Balance
432,000
A-11
ARP Funds
1,000,000
A-11
8,708,033
$
A-2
58
EXHIBIT A-11
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF INTERFUNDS ACTIVITY
Federal and
Public
Animal
General
State Grant
Other
Defender
Control
CDA
Total
Capital Fund
Fund
Trust Fund
Trust Fund
Trust Fund
Trust Fund
Ref.
Increased by:
Cash Disbursements
A-4
26,238,580
$
24,654,296
$
-
$
-
$
9,980
$
-
$
1,574,304
$
Statutory Excess
A-1
1,906
-
-
-
-
1,906
-
Anticipated in Budget:
Reserve for Debt Service
A-10
156,698
156,698
-
-
-
-
-
Capital Fund Balance
A-10
432,000
432,000
-
-
-
-
-
ARP Funds
A-10
1,000,000
-
1,000,000
-
-
-
-
Police Details
A-10
129,772
-
-
129,772
-
-
-
Police Detail Admin Fee
A-2
97,800
-
-
97,800
-
-
-
Grant Revenue As Adopted
A-2
9,549,607
-
9,549,607
-
-
-
-
Grants Added by 40A:4-87
A-2
15,220
-
15,220
-
-
-
-
37,621,583
25,242,994
10,564,827
227,572
9,980
1,906
1,574,304
Decreased by:
Appropriations Due to Other Funds:
Grants Appropriated
9,564,827
-
9,564,827
-
-
-
-
Grant Matches
161,501
-
161,501
-
-
-
-
Capital Improvement Fund
3,469,225
3,469,225
-
-
-
-
-
Transitional Aid Projects
5,670,000
5,670,000
-
-
-
-
-
Total Appropriations Due Funds
A-3
18,865,553
9,139,225
9,726,328
-
-
-
-
Grant Receivable Writeoffs
A-1
47,308
-
47,308
-
-
-
-
Cash Receipts
A-4
18,782,246
16,103,769
788,217
158,062
9,980
1,879
1,720,339
37,695,107
25,242,994
10,561,853
158,062
9,980
1,879
1,720,339
Net Change in Interfunds
(73,524)
-
2,974
69,510
-
27
(146,035)
Balance, June 30, 2022
Interfunds Receivable
A, A-10
154,925
-
8,890
-
-
-
146,035
Interfunds Payable
A
69,537
-
-
69,510
-
27
-
Balance, June 30, 2023
Interfunds Receivable
A, A-1
11,864
$
-
$
11,864
$
-
$
-
$
-
$
-
$
59
EXHIBIT A-12
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF DUE FROM STATE OF NEW JERSEY FOR SR. CITIZENS AND VETERANS DEDUCTIONS
Ref.
Increased by:
Senior Citizen Deductions Per Tax Billings
12,750
$
Veteran Deductions Per Tax Billings
15,250
Allowed by Tax Collector
Current Year
250
Prior Year
250
28,500
$
Decreased by:
Senior Citizen and Veteran Deductions
Disallowed by Tax Collector:
Current Year
1,000
Prior Year
347
1,347
State Share of Senior Citizen and Veteran Deductions
A-7
27,153
Less:
Disallowed by Sate Audit of Deductions
A-1
3,750
Cash Receipts
A-4
25,167
Net Change in Senior Citizen and Veteran Deductions
(1,764)
Balance, June 30, 2022
Receivable
A
25,167
Balance, June 30, 2023
Receivable
A
23,403
$
SCHEDULE OF TAX TITLE LIENS RECEIVABLE
EXHIBIT A-13
Ref.
Balance, June 30, 2022
A
29,551
$
Increased by:
Transfer from Taxes Receivable
A-7
3,022
Balance, June 30, 2023
A
32,573
$
60
EXHIBIT A-14
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF OTHER RECEIVABLES
Balance
Budget
Cash
Cash
Balance
June 30, 2022
Reimbursements
Disbursements
Receipts
June 30, 2023
Due from:
Due from Vendors
-
$
-
$
1,010
$
-
$
1,010
$
Board of Ed - Details
-
560
-
-
560
Retirement Pay - Police
-
138,480
-
138,480
Stop Loss Premiums
205,334
-
-
205,334
-
Union City Parking Authority
157,168
343,316
-
157,168
343,316
362,502
$
482,356
$
1,010
$
362,502
$
483,366
$
A, A1
A-3
A-4
A-4
A, A-1
Increased by:
Decreased by:
61
EXHIBIT A-15
Sheet 1 of 2
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF APPROPRIATION RESERVES
Balance
Paid or
Accounts
Balance
Over
Reserved
Encumbered
After Transfers
Charged
Payable
Lapsed
Expended
(A) Operations - Within "CAPS"
Department of Public Affairs:
Director's Office
Other Expenses
-
$
395
$
504
$
503
$
-
$
1
$
-
$
Municipal Court
Other Expenses
-
2,513
11,513
27,232
113
-
15,832
Public Defender
Other Expenses
-
-
9,625
9,625
-
-
-
Senior Citizens
Other Expenses
1
341
874
873
-
1
-
Hispanic/Cultural Affairs
Other Expenses
-
7,486
7,486
7,486
-
-
-
North Hudson Council of Mayors
Other Expenses
11,324
-
22,169
22,169
-
-
-
Municipal Land Use Law (NJS 40:55D-1)
Other Expenses
-
-
3,462
3,461
-
1
-
Continuous Planning Program
Other Expenses
-
508
(6,200)
(6,708)
-
508
-
Celebration of Public Events
Other Expenses
-
4,322
6,200
6,200
-
-
-
Department of Revenue and Finance:
Director's Office
Other Expenses
-
475
475
475
-
-
-
City Clerk's Office
Other Expenses
-
1,351
12,046
11,347
-
699
-
Postage
Other Expenses
-
-
2,114
2,114
-
-
-
Treasurer's Office
Salaries and Wages
690
-
3
-
-
3
-
Other Expenses
56,049
33,394
32,208
31,596
-
612
-
Assessment of Taxes
Other Expenses
-
960,100
961,616
509,516
452,100
-
-
Collection of Taxes
Other Expenses
1
3,442
3,443
3,439
-
4
-
Data Processing
Other Expenses
-
-
545
545
-
-
-
Central Purchasing
Other Expenses
-
1,243
1,243
1,243
-
-
-
Rent Control Board
Other Expenses
-
8,745
9,602
9,602
-
-
-
Insurance
Workers Compensation
563
25,000
2,645
2,644
-
1
-
Employee Group Health
-
1,116,829
1,116,829
1,376,760
-
-
259,931
Tax Searches
Salaries and Wages
107
-
1
-
-
1
-
Other Expenses
250
-
-
-
-
-
-
Elections
Other Expenses
-
105,177
145,277
174,909
13,668
-
43,300
Membership NJ League of Municipalities
Annual Audit
Other Expenses
-
90,500
90,500
90,500
-
-
-
Photocopying
Other Expenses
-
-
2,006
2,006
-
-
-
Tax Sale Costs
Other Expenses
700
9,300
9,300
9,300
-
-
-
Day Care Center
Other Expenses
-
130,000
130,000
130,000
-
-
-
Department of Parks and Public Property:
Director's Office
Other Expenses
-
152
1
-
-
1
-
Department of Public Safety:
Director's Office
Other Expenses
-
2,294
1,727
1,433
-
294
-
Legal Department
Other Expenses
-
72,576
72,576
326,353
-
-
253,777
Tenant Advocacy
Other Expenses
-
-
622
622
-
-
-
Police Department
Salaries and Wages
53,632
-
(3,377)
(3,377)
-
-
-
Other Expenses
-
150,753
207,163
321,761
-
-
114,598
Traffic Signs and Safety
Other Expenses
33,201
903
42,301
43,204
-
-
903
Balance, June 30, 2022
62
EXHIBIT A-15
Sheet 2 of 2
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF APPROPRIATION RESERVES
Balance
Paid or
Accounts
Balance
Over
Reserved
Encumbered
After Transfers
Charged
Payable
Lapsed
Expended
Balance, June 30, 2022
(A) Operations - Within "CAPS"
Emergency Management Services
Other Expenses
-
$
2,235
$
4,470
$
2,235
$
-
$
2,235
$
-
$
Emergency Medical Services
Other Expenses
-
14,143
10,180
9,611
-
569
-
Life Hazard Use Fee-Uniform Fire Safety
Other Expenses
1
-
1
-
-
1
-
Fleet Maintenance
Other Expenses
-
117,226
126,400
126,345
-
55
-
Department of Public Safety:
Contribution to UCRA
-
126,000
126,000
126,000
-
-
-
Board of Health
Salaries and Wages
8,890
-
1
-
-
1
-
Other Expenses
-
-
5,497
5,497
-
-
-
Welfare
Relocation Assistance
-
15,006
(9,060)
(9,060)
-
-
-
Department of Public Works:
Director's Office
Other Expenses
-
9,076
542
542
-
-
-
Street Cleaning
Other Expenses
-
9,768
27,072
27,072
-
-
-
Streets Repairs and Maintenance
Other Expenses
8
5,148
52,864
49,937
-
2,927
-
Snow Removal
Other Expenses
-
68
1
-
-
1
-
Board of Adjustment
Other Expenses
-
300
(14,471)
(14,471)
-
-
-
Solid Waste Disposal
Other Expenses
386,058
52,928
400,645
400,645
-
-
-
Engineering Services
Other Expenses
-
-
-
101,168
-
-
101,168
Public Assistance
Other Expenses
-
1,900
348
348
-
-
-
Department of Parks and Public Property:
Parks and Playgrounds
Other Expenses
6,780
37,447
83,797
126,686
-
-
42,889
Public Buildings and Grounds
Other Expenses
3,461
51,743
59,703
48,203
-
11,500
-
Recreation
Other Expenses
-
98,136
98,136
198,947
-
-
100,811
Uniform Construction Code:
State Uniform Construction Code Officials:
Other Expenses
9,833
97,074
70,209
70,208
-
1
-
Fire Inspector
Other Expenses
1
-
1
-
-
1
-
Unclassified:
Gasoline
-
80,000
77,907
77,907
-
-
-
Telephone
-
1,250
23,795
22,544
-
1,251
-
Electricity
-
48,138
48,138
496,768
-
-
448,630
Water
-
-
5,965
5,965
-
-
-
Printing
-
-
-
76,637
-
-
76,637
Sewer
1
-
1
-
-
1
-
Deferred Charges and Statutory Expenditures -
Statutory Expenditures - Contributions to:
Social Security System
3,098
-
-
-
-
-
-
Unemployment Insurance
-
196,117
171,510
117,053
54,457
-
-
Other Operations Excluded from "CAPS"
Free Public Library
3,286
161,072
164,358
164,358
-
-
-
North Hudson Fire & Rescue
289,955
4,783,348
5,073,303
4,796,519
-
276,784
-
Shared Service Agreements:
Union City Board of Education
School Crossing Guards
-
198,544
198,544
136,099
62,445
-
-
Hudson County Improvement Authority:
Fire Dept Assets - Interest
-
11,284
11,284
11,284
-
-
-
Total General Appropriations
867,890
$
8,845,750
$
9,713,640
$
10,291,880
$
582,783
$
297,453
$
1,458,476
$
A
A-22
A-4
A-21
A-1
A-23
63
EXHIBIT A-16
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF OTHER INTERGOVERNMENTAL PAYABLES
Decreased by:
Balance
Cash
Cash
Balance
June 30, 2022
Receipts
Disbursements
June 30, 2023
Due to:
Union City Parking Authority
45,019
$
678,594
$
723,613
$
-
$
State of New Jersey:
Training Fees
21,174
73,243
64,023
30,394
Marriage License Fees
3,725
-
3,725
-
69,918
$
751,837
$
791,361
$
30,394
$
A
A-4
A-4
A
Increased by:
64
EXHIBIT A-17
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF RESERVE FOR LIQUOR LICENSE RETIREMENT
Ref.
Balance, June 30, 2022
A
45,005
$
Increased by:
Cash Receipts
A-4
13,050
Balance, June 30, 2023
A
58,055
$
SCHEDULE OF PREPAID TAXES
EXHIBIT A-18
Ref.
Balance, June 30, 2022
A
214,904
$
Increased by:
Cash Collections
A-4
146,707
361,611
Decreased by:
Applied to 2022-2023 Taxes
A-7
214,904
Balance, June 30, 2023
A
146,707
$
65
EXHIBIT A-19
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF LOCAL SCHOOL DISTRICT TAXES PAYABLE
Ref.
Balance, June 30, 2022
A
-
$
Increased by:
Levy School Year
A-1, A-2, A-7
15,418,637
15,418,637
Decreased by:
Cash Disbursements
A-4
15,418,637
Balance, June 30, 2023
A
-
$
SCHEDULE OF COUNTY TAXES PAYABLE
EXHIBIT A-20
Ref.
Balance, June 30, 2022
-
$
Increased by:
County Taxes
A-7
18,093,447
$
County Open SpaceTaxes
A-7
352,316
A-1
18,445,763
Added Taxes
A-1, A-7
79,428
A-2
18,525,191
18,525,191
Decreased by:
Cash Disbursements
A-4
18,525,191
Balance, June 30, 2023
-
$
66
EXHIBIT A-21
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF ACCOUNTS PAYABLE
Ref.
Balance, June 30, 2022
A
-
$
Increased by:
Charges to Appropriation Reserves
A-15
582,783
582,783
Decreased by:
Cash Disbursements
A-4
582,783
Balance, June 30, 2023
A
-
$
SCHEDULE OF RESERVE FOR ENCUMBRANCES
EXHIBIT A-22
Current
Federal and
Fund
State Grant Fund
Ref.
Increased by:
Current Year Appropriations
A-3
5,608,247
$
-
$
Grants Appropriated
A-26
-
1,248,499
5,608,247
1,248,499
Decreased by:
Approriation Reserves
A-15
8,845,750
-
Grants Appropriated
A-26
-
1,927,660
8,845,750
1,927,660
Net Change in Encumbrances
(3,237,503)
(679,161)
Balance, June 30, 2022
A
8,845,750
1,927,660
$
Balance, June 30, 2023
A
5,608,247
$
1,248,499
$
67
EXHIBIT A-23
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF DEFERRED CHARGES
Original
Balance
Budget
Balance
Amount
June 30, 2022
Overexpended
Reclass
Emergencies
Appropriations
June 30, 2023
Overexpenditures - Current Fund:
Appropriation Reserves
696,551
$
696,551
$
1,458,476
$
-
$
-
$
696,551
$
1,458,476
$
Budget Appropriations
2022 Other Expenses
2,324,159
2,324,160
-
-
-
2,324,160
-
Health Insurance
1,484,234
1,484,233
-
-
1,484,233
-
Emergency Authorizations (40A:4-46)
Budget Deficit (Ord. 2019-14)
6,050,000
3,630,000
-
-
-
1,210,000
2,420,000
COVID Expenditures - Health Insurance & Solid Waste Removal
2020 (June 23, 2020)
5,476,657
4,380,000
-
(400)
-
1,096,000
3,283,600
Special Emergency Authorizations (NJSA 40A:4-53.a)
Preparation of Tax Map
2020 (April 16, 2020)
194,500
124,000
-
(7,300)
-
38,900
77,800
Revaluation
2022
-
1,000,000
-
-
-
200,000
800,000
COVID-19 Revenue Loss
1,726,143
1,380,800
-
-
-
345,300
1,035,500
Special Emergency Authorizations (NJSA 40A:4-53.h)
Cancellation of Grants Receivable
2018 (Aug. 2, 2017)
1,516,296
303,256
-
-
-
303,256
-
2019 (2019-R-63)
978,300
195,660
-
-
-
195,660
-
Special Emergency Authorizations (NJSA 40A:4-53.h)
Contractually Required Severance Liabilities
2016 (Ord. 2018-38)
284,543
19,385
-
92,615
-
112,000
-
2017 (Ord. 2018-38)
526,524
127,514
-
(56,514)
-
71,000
-
2018 (Ord. 2018-38)
733,555
266,289
-
(289)
-
146,800
119,200
2019 (Ord. 2018-37)
1,012,741
377,452
-
(452)
-
210,000
167,000
2020 (Reso. June 23, 2020)
673,829
431,200
-
(27,200)
-
135,000
269,000
2021 (Reso. June 30, 2021)
1,093,199
874,559
-
(460)
-
277,000
597,099
2022
1,292,597
1,292,597
-
-
-
258,520
1,034,077
2023
995,000
-
-
-
995,000
-
995,000
18,907,656
$
1,458,476
$
-
$
995,000
$
9,104,380
$
12,256,752
$
A
A-15
A-1, A-3
A-3
A
Appropriatons Inside CAPS
4,504,944
$
Appropriatons Outside CAPS
4,599,436
9,104,380
$
Increased by:
68
EXHIBIT A-24
Sheet 1 of 2
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF SPECIAL EMERGENCY NOTES PAYABLE
Ordinance
Date of
Date of
Maturity
Interest
Balance
Notes
Notes
Paid by Budget
Balance
Number
Issue
Amount
Issue
Date
Rate
June 30, 2022
Issued
Refunded
Appropriation
June 30, 2023
Budget Deficit State Loan:
Series 2022 B-2 (Federally Taxable) (HCIA Local Unit Loan Program)
2019-14
06/24/2019
6,050,000
$
08/05/2022
08/04/2023
3.875%
-
$
2,420,000
$
-
$
-
$
2,420,000
$
Series 2021 C-2 (Federally Taxable) (HCIA Local Unit Loan Program)
2019-14
06/24/2019
6,050,000
08/17/2021
08/16/2022
1.000%
3,630,000
-
2,420,000
1,210,000
-
Preparation of Tax Map
Series 2023A (Tax Exempt) (HCIA Local Unit Loan Program)
*
4/29/2021
155,000
04/06/2023
04/05/2024
4.250%
-
93,000
-
-
93,000
Series 2022A-2 (Federally Taxable) (HCIA Local Unit Loan Program)
*
4/29/2021
155,000
04/18/2022
04/17/2023
2.750%
124,000
-
93,000
31,000
-
COVID Emergency Authorizations of June 23, 2020
Series 2023A (Tax Exempt) (HCIA Local Unit Loan Program)
Health Insurance
*
4/29/2021
4,219,789
04/06/2023
04/05/2024
4.250%
-
2,530,004
-
-
2,530,004
Solid Waste
*
4/29/2021
1,255,611
04/06/2023
04/05/2024
4.250%
-
753,996
-
-
753,996
Series 2022A-1 (Tax Exempt) (HCIA Local Unit Loan Program)
Health Insurance
*
4/29/2021
4,219,789
04/18/2022
04/17/2023
3.000%
3,375,589
-
2,530,004
845,585
-
Solid Waste
*
4/29/2021
1,255,611
04/18/2022
04/17/2023
3.000%
1,004,411
-
753,996
250,415
-
COVID-19 Revenue Loss
Series 2023A (Tax Exempt) (HCIA Local Unit Loan Program)
*
4/29/2021
1,726,000
04/06/2023
04/05/2024
4.250%
-
1,035,600
-
-
1,035,600
Series 2022A-2 (Federally Taxable) (HCIA Local Unit Loan Program)
*
4/29/2021
155,000
04/18/2022
04/17/2023
2.750%
1,380,800
-
1,035,600
345,200
-
Original
Decreased by:
69
EXHIBIT A-24
Sheet 2 of 2
CITY OF UNION CITY
CURRENT FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF SPECIAL EMERGENCY NOTES PAYABLE
Ordinance
Date of
Date of
Maturity
Interest
Balance
Notes
Notes
Paid by Budget
Balance
Number
Issue
Amount
Issue
Date
Rate
June 30, 2022
Issued
Refunded
Appropriation
June 30, 2023
Original
Decreased by:
Contractually Required Severance Liabilities
Special Emergency Notes, Series A of 2023 (Federally Taxable)
2018-37
12/12/2014
1,012,741
$
01/25/2023
01/24/2024
3.850%
-
$
167,000
$
-
$
-
$
167,000
$
2018-38
10/10/2018
1,732,769
01/25/2023
01/24/2024
3.850%
-
380,000
-
-
380,000
Special Emergency Notes, Series A of 2022 (Federally Taxable)
2018-37
12/12/2014
1,012,741
01/26/2022
01/25/2023
0.560%
377,000
-
167,000
210,000
-
2018-38
10/10/2018
1,732,769
01/26/2022
01/25/2023
0.560%
720,000
-
380,000
340,000
-
Series 2023A (Tax Exempt) (HCIA Local Unit Loan Program)
*
4/29/2021
539,000
04/06/2023
04/05/2024
4.250%
-
323,400
-
-
323,400
Series 2022A-2 (Federally Taxable) (HCIA Local Unit Loan Program)
*
4/29/2021
539,000
04/18/2022
04/17/2023
2.750%
431,200
-
323,400
107,800
-
11,043,000
$
7,703,000
$
7,703,000
$
3,340,000
$
7,703,000
$
Ref.
A
A-4
A
Series A of 2022
1,097,000
$
Series A of 2023
547,000
$
Series 2022A-1
4,380,000
Series 2023A
4,736,000
Series 2022A-2
1,936,000
Series 2022B-2
2,420,000
Series 2021C-2
3,630,000
7,703,000
$
11,043,000
$
70
EXHIBIT A-25
Sheet 1 of 3
CITY OF UNION CITY
SCHEDULE OF GRANTS RECEIVABLE
Balance
Balance
Budget
June 30,
As
As Added
Reallocated /
June 30,
Year
2022
Adopted
by 40A:4-87
Received
Cancelled
2023
FEDERAL GRANTS
U.S. Department of Health and Human Services:
Drug Free Community
2022
38,296
$
-
$
-
$
38,296
$
-
$
-
$
2023
-
125,000
-
94,031
-
30,969
Passed through NJ Department of Health
Strengthening Local Public Health Capacity
2022
128,249
-
-
104,249
24,000
-
2023
-
274,735
-
82,669
-
192,066
COVID-19 Vaccination Supplemental Funding
2022
28,269
-
-
28,269
-
-
2023
-
50,000
-
23,976
-
26,024
U.S. Department of Justice:
Bulletproof Vest Partnership Program
2021
16,660
-
-
-
-
16,660
2018
11,063
-
-
1,587
-
9,476
2020
11,522
-
-
-
-
11,522
2022
5,515
-
-
1,688
-
3,827
2023
-
13,640
-
-
-
13,640
COPS Hiring Program
2023
-
3,750,000
-
-
-
3,750,000
COPS Technology & Equipment
2023
-
1,100,000
-
-
-
1,100,000
Passed through NJ Department of Law and Public Safety:
Pedestrian Safety
2022
35,000
-
-
33,000
2,000
-
Non-Motorized Safety
2023
-
35,000
-
-
-
35,000
U.S. Department of Agriculture:
Pass through Entity: State of NJ Department of Health
Program: WIC/Seniors Farmer Market Nutrition Program
2023
-
-
1,220
-
-
1,220
U.S. Department of Treasury:
Passed through County of Hudson
CARES Act - Reimbursements
2021
637,299
-
-
589,771
47,528
-
U.S. Department of Transportation:
Passed through NJ Department of Law and Public Safety:
National Highway Traffic Safety Association - Click it or Ticket
2022
14,000
-
-
14,000
-
-
2023
-
-
14,000
-
-
14,000
U Text, U Drive, U Pay
2022
12,240
-
-
12,240
-
-
Body Worn Camera Grant
2022
476,892
-
-
-
-
476,892
Distracted Driving Crackdown Grant
2023
-
12,250
-
-
-
12,250
Drive Sober or Get Pulled Over Holiday Crackdown
2023
-
10,500
-
8,120
2,380
-
Drive Sober or Get Pulled Over
2023
-
8,750
-
1,740
7,010
-
Total Federal
1,415,005
$
5,379,875
$
15,220
$
1,033,636
$
82,918
$
5,693,546
$
FEDERAL AND STATE GRANTS FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Anticipated in Budget
71
EXHIBIT A-25
Sheet 2 of 3
CITY OF UNION CITY
SCHEDULE OF GRANTS RECEIVABLE
Balance
Balance
Budget
June 30,
As
As Added
Reallocated /
June 30,
Year
2022
Adopted
by 40A:4-87
Received
Cancelled
2023
FEDERAL AND STATE GRANTS FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Anticipated in Budget
STATE GRANTS
NJ Department of Transportation Transportation Trust Fund:
2019 Various Streets - FY 19 Municipal Aid
2020
110,969
$
-
$
-
$
-
$
-
$
110,969
$
2021 Various Streets - FY 21 Municipal Aid
2021
720,000
-
-
-
-
720,000
2021 Various Streets - FY 19 Urban Aid
2021
195,396
-
-
-
-
195,396
Palisade Ave Section 2 - FY20 Local Aid Infrastructure Fund
2016
858,037
-
-
-
-
858,037
Palisade Ave Section 3 - FY21 Local Aid Infrastructure Fund
2021
875,000
-
-
-
-
875,000
Kerrigan Avenue - LAIF Discretionary Funds
2018
709,126
-
-
-
-
709,126
2018 Various Streets - FY 18 Urban Aid
2019
66,150
-
-
-
-
66,150
Palisade Ave Section 1 - FY 19 LAIF
2019
600,000
-
-
-
-
600,000
35th Street Phase 1 - FY20 Municipal Aid
2020
117,725
-
-
-
45,625
72,100
35th Street Phase 2 - FY20 Municipal Aid
2020
74,465
-
-
-
22,297
52,168
Central Ave Corridor Improvements - Local Aid Infrastructure
2022
900,000
-
-
-
-
900,000
13th, 42nd and 47th Streets - Municipal Aid Program
2022
862,176
-
-
-
-
862,176
13th, 37th and 38th Streets - Municipal Aid Program
2023
-
881,990
-
-
-
881,990
NJ Department of Law and Public Safety:
Body Armor Fund
2023
-
9,471
-
9,471
-
-
Edward Byrne Memorial Justice Assistance Grant (JAG)
2022
24,643
-
-
-
-
24,643
NJ Department of Community Affairs:
Urban Enterprize Zone (UEZ) Assistance Fund
2022
885,746
-
-
885,746
-
-
41st Street Park Grant
2023
-
1,700,000
-
850,000
-
850,000
NJ Department of Environmental Protection:
Green Acres Trust Fund Grant - 44th St Acquisition
2020
675,000
-
-
-
-
675,000
Green Acres Trust Fund Grant - 4100 Palisade Ave.
2022
1,000,000
-
-
-
-
1,000,000
Green Acres - 4100 Palisade Ave. - Urban Parks
2022
500,000
-
-
-
-
500,000
2023
-
225,000
-
-
-
225,000
Recycling Tonnage
2023
-
107,409
-
107,409
-
-
Electric Vehicle DC Fast Charger Community Grant
It Pay$ to Plug
2023
-
150,000
-
-
-
150,000
NJ Department of Environmental Protection
Clean Energy Electric Vehicle Tourism Grant
2023
-
42,000
-
-
-
42,000
72
EXHIBIT A-25
Sheet 3 of 3
CITY OF UNION CITY
SCHEDULE OF GRANTS RECEIVABLE
Balance
Balance
Budget
June 30,
As
As Added
Reallocated /
June 30,
Year
2022
Adopted
by 40A:4-87
Received
Cancelled
2023
FEDERAL AND STATE GRANTS FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Anticipated in Budget
STATE GRANTS (continued)
NJ Department of Treasury:
Community Energy Plan Grant
2023
-
$
25,000
$
-
$
25,000
$
-
$
-
$
Passed through County of Hudson:
Municipal Alliance on Alcoholism and Drug Abuse
2022
15,069
-
-
15,069
-
-
2023
-
21,005
-
21,005
-
-
Youth Leadership Municipal Alliance
2023
-
7,616
-
7,616
-
-
Total State
9,189,502
$
3,169,491
$
-
$
1,921,316
$
67,922
$
10,369,755
$
COUNTY GRANTS
County of Hudson:
History Partnership Program - Union City Documentary
2017
1,875
$
-
$
-
$
-
$
1,875
$
-
$
History Partnership Program - Union City Museum
2018
2,500
-
-
-
2,500
-
Open Space Trust Fund:
38th Street Playground Improvements
2019
44,025
-
-
-
44,025
-
Washington Park Improvements Phase II
2019
240
-
-
-
240
-
4100 Palisade Ave
2022
227,500
-
-
-
(44,025)
271,525
Washington Park East Phase II
2021
272,500
-
-
46,638
-
225,862
Total County
548,640
$
-
$
-
$
46,638
$
4,615
$
497,387
$
OTHER PRIVATE GRANTS
National Opioid Settlement
2023
-
$
346,324
$
-
$
346,324
$
-
$
-
$
NJ Association of County and City Health Officials:
Enhancing Local Public Health Infrastructure Grant
2023
-
653,917
-
131,384
-
522,533
Private Total
-
1,000,241
-
477,708
-
522,533
11,153,147
$
9,549,607
$
15,220
$
3,479,298
$
155,455
$
17,083,221
$
Ref.
A
A-27
A-27
A-4
A
A-26
108,147
$
A-27
47,308
155,455
$
73
EXHIBIT A-26
Sheet 1 of 6
CITY OF UNION CITY
FEDERAL AND STATE GRANTS FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF RESERVE FOR APPROPRIATED GRANTS
Budget
Current Year
Paid or
Reallocated /
Year
Reserved
Encumbered
City Match
Awards
Charged
Cancelled
Encumbered
Reserved
FEDERAL GRANTS
U.S. Department of Health and Human Services:
Drug Free Community
2022
15,312
24,750
-
-
40,062
-
-
-
2023
-
-
-
125,000
97,507
-
20,583
6,910
Drug Free Community - Local Match
2022
39,062
-
-
-
39,062
-
-
-
2023
-
-
156,250
-
120,960
-
-
35,290
Passed Through NJ Department of Health
Strengthening Local Public Health Capacity
2022
16,251
51,163
-
-
40,830
24,000
-
2,584
2023
-
-
-
274,735
254,271
-
1,092
19,372
COVID-19 Vaccination Supplemental Funding
2022
-
5,294
-
-
5,294
-
-
-
2023
-
-
-
50,000
48,062
-
-
1,938
U.S. Department of Justice:
COPS Hiring Program
2023
-
-
-
3,750,000
-
-
-
3,750,000
COPS Technology & Equipment
2023
-
-
-
1,100,000
241,027
-
182,122
676,851
Bulletproof Vest Partnership Program
2022
3,826
-
-
-
3,826
-
-
-
2023
-
-
-
13,640
5,856
-
-
7,784
Passed through NJ Department of Law and Public Safety:
Pedestrian Safety Grant
2022
35,000
-
-
-
33,000
2,000
-
-
Non-Motorized Safety
2023
-
-
-
35,000
-
-
-
35,000
U.S. Department of Agriculture:
Pass through Entity: State of NJ Department of Health
Program: WIC/Seniors Farmer Market Nutrition Program
2023
-
-
-
1,220
-
-
-
1,220
Balance, June 30, 2023
Balance, June 30, 2022
Increased by:
Decreased by:
74
EXHIBIT A-26
Sheet 2 of 6
CITY OF UNION CITY
FEDERAL AND STATE GRANTS FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF RESERVE FOR APPROPRIATED GRANTS
Budget
Current Year
Paid or
Reallocated /
Year
Reserved
Encumbered
City Match
Awards
Charged
Cancelled
Encumbered
Reserved
Balance, June 30, 2023
Balance, June 30, 2022
Increased by:
Decreased by:
FEDERAL GRANTS (continued)
U.S. Department of Treasury:
ARP-State and Local Fiscal Recovery Funds
2021
2,756,841
$
34,802
$
-
$
-
$
2,685,277
$
-
$
57,803
$
48,563
$
2022
2,972,155
-
-
-
469,257
-
2,898
2,500,000
U.S. Department of Transportation:
Body Worn Cameras Grant
2022
458,262
-
-
-
32,510
-
47,590
378,162
Passed through NJ Department of Law and Public Safety
National Highway Traffic Safety Association - Restraints Program Management
Click it or Ticket
2022
9,200
-
-
-
9,200
-
-
-
2023
-
-
-
14,000
6,090
-
-
7,910
Distracted Driving Crackdown Grant
2023
-
-
-
12,250
12,250
-
-
-
Drive Sober or Get Pulled Over Holiday Crackdown
2023
-
-
-
10,500
8,120
2,380
-
-
Drive Sober or Get Pulled Over
2023
-
-
-
8,750
1,740
7,010
-
-
Federal Total
6,305,909
116,009
156,250
5,395,095
4,154,201
35,390
312,088
7,471,584
75
EXHIBIT A-26
Sheet 3 of 6
CITY OF UNION CITY
FEDERAL AND STATE GRANTS FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF RESERVE FOR APPROPRIATED GRANTS
Budget
Current Year
Paid or
Reallocated /
Year
Reserved
Encumbered
City Match
Awards
Charged
Cancelled
Encumbered
Reserved
Balance, June 30, 2023
Balance, June 30, 2022
Increased by:
Decreased by:
STATE GRANTS
NJ Department of Transportation
Transportation Trust Fund:
Various Streets 2021 - FY 21 Municipal Aid
2021
327,013
$
216,345
$
-
$
-
$
78,098
$
-
$
138,247
$
327,013
$
Palisade Ave, Section 3
2020
-
935,927
-
-
935,927
-
-
-
35th St Phase 1 - FY20 Municipal Aid
2020
45,625
-
-
-
-
45,625
-
-
NJ Department of Transportation
Transportation Trust Fund:
35th St Phase 2 - FY20 Municipal Aid
2020
22,297
-
-
-
-
22,297
-
-
Central Ave Corridor Improvements - Local Aid Infrastructure
2022
-
472,377
-
-
472,377
-
-
-
13th, 42nd and 47th Streets - Municipal Aid Program
2022
862,176
-
-
-
862,176
-
-
-
13th, 37th and 38th Streets - Municipal Aid Program
2023
-
-
-
881,990
170,066
-
267,974
443,950
NJ Department of Law and Public Safety:
Body Armor Fund
2022
7,000
-
-
-
7,000
-
-
-
2023
-
-
-
9,471
2,682
-
-
6,789
NJ Department of Environmental Protection:
Clean Communities
2021
-
405
-
-
405
-
-
-
2021
-
275
-
-
275
-
-
-
2022
88,109
4,930
-
-
77,827
-
2,473
12,739
Electric Vehicle DC Fast Charger Community Grant
It Pay$ to Plug
2023
-
-
-
150,000
-
-
-
150,000
Clean Energy Electric Vehicle Tourism Grant
2023
-
-
-
42,000
11,223
-
-
30,777
76
EXHIBIT A-26
Sheet 4 of 6
CITY OF UNION CITY
FEDERAL AND STATE GRANTS FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF RESERVE FOR APPROPRIATED GRANTS
Budget
Current Year
Paid or
Reallocated /
Year
Reserved
Encumbered
City Match
Awards
Charged
Cancelled
Encumbered
Reserved
Balance, June 30, 2023
Balance, June 30, 2022
Increased by:
Decreased by:
STATE GRANTS (continued)
NJ Division of Highway Traffic Safety:
Drunk Driving Enforcement Fund
2018
13,933
$
-
$
-
$
-
$
-
$
-
$
-
$
13,933
$
2017
3,664
-
-
-
435
-
-
3,229
Green Acres - Reservoir Purchase
2018
1,000,000
-
-
-
80,618
-
-
919,382
2016
-
177,382
-
-
177,382
-
-
-
Green Acres - 44th St Acquisition
2020
675,000
-
-
-
-
-
-
675,000
Green Acres - 4100 Palisade Ave.
2022
1,000,000
-
-
-
15,200
-
-
984,800
2023
-
-
-
225,000
-
-
-
225,000
Green Acres - 4100 Palisade Ave. - Urban Parks
2022
500,000
-
-
-
-
-
-
500,000
NJ Division of Highway Traffic Safety:
Recycling Tonnage Grant
2021
122,918
-
-
-
122,918
-
-
-
2020
4,809
-
-
-
4,809
-
-
-
2022
134,562
-
-
-
134,562
-
-
-
2023
-
-
-
107,409
-
-
2,100
105,309
NJ Department of Treasury:
Community Energy Plan Grant
2023
-
-
-
25,000
-
-
-
25,000
Passed through County of Hudson:
Municipal Alliance
Program Funds
2022
1,599
-
-
-
1,599
-
-
-
2023
-
-
-
21,005
21,005
-
-
-
Matching Funds
2023
-
-
5,251
-
5,251
-
-
-
Youth Leadership Municipal Alliance
2023
-
-
-
7,616
7,616
-
-
-
77
EXHIBIT A-26
Sheet 5 of 6
CITY OF UNION CITY
FEDERAL AND STATE GRANTS FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF RESERVE FOR APPROPRIATED GRANTS
Budget
Current Year
Paid or
Reallocated /
Year
Reserved
Encumbered
City Match
Awards
Charged
Cancelled
Encumbered
Reserved
Balance, June 30, 2023
Balance, June 30, 2022
Increased by:
Decreased by:
STATE GRANTS (continued)
NJ Administrative Office of the Courts:
Alcohol Education
2013
110
$
-
$
-
$
-
$
-
$
-
$
-
$
110
$
2014
2,216
-
-
-
-
-
-
2,216
2014
3,368
-
-
-
-
-
-
3,368
2016
1,120
-
-
-
-
-
-
1,120
2017
6,406
-
-
-
-
-
-
6,406
2017
11,131
-
-
-
-
-
-
11,131
2018
6,005
-
-
-
-
-
-
6,005
2019
3,295
-
-
-
-
-
-
3,295
2020
1,167
-
-
-
-
-
-
1,167
2022
632
-
-
-
-
-
-
632
NJ Department of Community Affairs:
41st Street Park Grant
2023
-
-
-
1,700,000
-
-
-
1,700,000
Urban Enterprize Zone (UEZ) Assistance Fund
2022
885,746
-
-
-
360,129
-
525,617
-
State Total
5,729,901
1,807,641
5,251
3,169,491
3,549,580
67,922
936,411
6,158,371
78
EXHIBIT A-26
Sheet 6 of 6
CITY OF UNION CITY
FEDERAL AND STATE GRANTS FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF RESERVE FOR APPROPRIATED GRANTS
Budget
Current Year
Paid or
Reallocated /
Year
Reserved
Encumbered
City Match
Awards
Charged
Cancelled
Encumbered
Reserved
Balance, June 30, 2023
Balance, June 30, 2022
Increased by:
Decreased by:
HUDSON COUNTY GRANTS
History Partnership Program - UC Museum
2018
2,500
$
-
$
-
$
-
$
-
$
2,500
$
-
$
-
$
History Partnership Program - Otis Davis Documentary
2019
2,095
2,800
-
-
2,800
2,095
-
-
Open Space Trust Fund
38th Street Playground Improvements
2019
44,025
-
-
-
-
44,025
-
-
Washington Park Improvements Phase II
2019
240
-
-
-
-
240
-
-
Washington Park East Improvements Phase II
2021
272,500
-
-
-
272,500
-
-
-
Ellsworth Park Improvements
2014
-
1,210
-
-
1,210
-
-
-
4100 Palisade Ave.
2022
227,500
-
-
-
-
(44,025)
-
271,525
County Total
548,860
4,010
-
-
276,510
4,835
-
271,525
OTHER PRIVATE GRANTS
National Opioid Settlement
2023
-
$
-
$
-
$
346,324
$
-
$
-
$
-
$
346,324
$
NJ Association of County and City Health Officials:
Enhancing Local Public Health Infrastructure Grant
2023
-
-
-
653,917
134,254
-
-
519,663
Private Total
-
-
-
1,000,241
134,254
-
-
865,987
12,584,670
$
1,927,660
$
161,501
$
9,564,827
$
8,114,545
$
108,147
$
1,248,499
$
14,767,467
$
Ref.
A
A-22
A-27
A-27
A-4
A-25
A-22
A
79
EXHIBIT A-27
CITY OF UNION CITY
FEDERAL AND STATE GRANTS FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF INTERFUNDS
Current
Fund
Ref.
Increased by:
Appropriated in Budget
Grant Awards
A-26
9,564,827
$
City Match
A-26
161,501
Cancelled Receivables
A-25
47,308
Cash Disbursements
A-4
788,217
10,561,853
Decreased by:
Anticipated Grant Revenues
Adopted Budget
A-25
9,549,607
Added by Chapter 159
A-25
15,220
Cash Receipts
A-4
1,000,000
10,564,827
Net Change in Interfunds
(2,974)
Balance, June 30, 2022
-
Balance, June 30, 2023
-
$
80
EXHIBIT A-28
CITY OF UNION CITY
FEDERAL AND STATE GRANTS FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF RESERVE FOR UNAPPROPRIATED GRANTS
Balance
Cash
Balance
June 30, 2022
Receipts
June 30, 2023
FEDERAL GRANTS:
U.S. Department of Treasury:
ARP-State and Local Fiscal Recovery Funds
-
$
1,440,400
$
1,440,400
$
STATE GRANTS:
NJ Department of Environmental Protection:
Clean Communities
-
104,355
104,355
NJ Administrative Office of the Courts:
Alcohol Education
-
9,605
9,605
PRIVATE GRANTS:
National Opioid Settlement
-
67,499
67,499
-
$
1,621,859
$
1,621,859
$
A
A-4
A
81
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tyuiopasdfghjklzxcvbnmqwertyuiopas
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CITY OF UNION CITY
REPORT OF AUDIT
SUPPLEMENTARY DATA SECTION:
TRUST FUND SCHEDULES
CITY OF UNION CITY
EXHIBIT B-1
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF CASH AND CASH EQUIVALENTS - ANIMAL CONTROL TRUST FUND
Ref.
Balance, June 30, 2022
B
9,152
$
Increased by:
Sale of Dog Licenses - State
B-2
921
$
Sale of Dog Licenses - City
B-3
3,834
Sale of Dog Licenses - Late Fees
B-3
440
5,195
14,347
Decreased by:
Due to Current Fund
B-4
1,879
Transmitted to State
B-2
1,785
Accounts Payable
B-3
541
4,205
Balance, June 30, 2023
B
10,142
$
SCHEDULE OF DUE TO STATE OF NEW JERSEY - ANIMAL CONTROL TRUST FUND
EXHIBIT B-2
Ref.
Balance, June 30, 2022
B
864
$
Increased by:
State Fees Collected:
Pilot Clinic Funds
71
$
Registration Fees
355
Population Control Fees
495
B-1
921
1,785
Decreased by:
Transmitted to State
B-1
1,785
Balance, June 30, 2023
B
-
$
82
EXHIBIT B-3
CITY OF UNION CITY
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF RESERVE FOR ANIMAL CONTROL TRUST FUND EXPENDITURES
Ref.
Balance, June 30, 2022
B
8,315
$
Increased by:
Cash Receipts - Dog Licenses
B-1
3,834
$
Cash Receipts - Late Fees
B-1
440
4,274
12,589
Decreased by:
Cash Disbursements
B-1
541
Statutory Excess
B-4
1,906
2,447
Balance, June 30, 2023
B
10,142
$
Maximum Allowable Reserve
License Fees Collected:
2022
6,107
$
2021
4,035
10,142
$
83
CITY OF UNION CITY
EXHIBIT B-4
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF INTERFUNDS - ANIMAL CONTROL FUND
Due To / From
Current Fund
Ref.
Increased by:
Cash Disbursed
B-1
1,879
$
Decreased by:
Cash Disbursed by Current Fund for:
Statutory Excess
B-3
1,906
Net Change in Interfunds
(27)
Balance, June 30, 2022
B
Interfunds Receivable
27
Balance, June 30, 2023
B
-
$
SCHEDULE OF CASH AND CASH EQUIVALENTS - OTHER TRUST FUND
EXHIBIT B-5
Ref.
Balance, June 30, 2022
B
14,759,000
$
Increased by Cash Receipts:
Due from Contractors
B-6
16,125
$
Other Trust Fund Reserves
B-8
8,063,935
8,080,060
22,839,060
Decreased by Cash Disbursements:
Due to Current Fund
B-7
158,062
Other Trust Fund Reserves
B-8
11,265,676
11,423,738
Balance, June 30, 2023
B
11,415,322
$
84
CITY OF UNION CITY
EXHIBIT B-6
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF ACCOUNT RECEIVABLES - OTHER TRUST FUND
Due from
Contractors
Ref.
Balance, June 30, 2022
B
407,067
$
Decreased by Cash Receipts:
Other Trust Fund Reserves
B-5
16,125
Balance, June 30, 2023
B
390,942
$
SCHEDULE OF INTERFUNDS - OTHER TRUST FUND
EXHIBIT B-7
Due To / From
Current Fund
Ref.
Increased by:
Cash Disbursements
B-5
158,062
$
Decreased by:
Expenditures Paid by Current Fund
B-8
227,572
Net Change in Interfunds
(69,510)
Balance, June 30, 2022
B
Interfunds Receivable
69,510
Balance, June 30, 2023
B
-
$
85
CITY OF UNION CITY
EXHIBIT B-8
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF OTHER TRUST FUND RESERVES
Reserved
Encumbered
Increase
Decrease
Encumbered
Reserved
Ambulance Donations
300
$
-
$
-
$
-
$
-
$
300
$
COAH
2,512,366
-
312,927
248,377
-
2,576,916
DARE Donations
1,845
-
-
-
-
1,845
DEA - Federal Equitable Sharing
208
-
7
-
-
215
Disposal of Forfeited Property
17,184
-
-
-
-
17,184
HCLET - Forfeited Property
78,285
14,287
13,864
55,800
-
50,636
Prisoners' Property
25,341
-
-
-
-
25,341
Elevator Inspections
7,579
-
40,283
40,797
-
7,065
Feral Cat Program Donations
431
-
-
-
-
431
Fire Victims Assistance
128
-
42,917
41,615
-
1,430
Insurance Proceeds
60,632
-
-
-
-
60,632
Outside Lien Holders
98,330
146,374
1,491,496
1,583,987
54,075
98,138
P.O.A.A
178,330
10,940
58,071
82,981
540
163,820
Police Donations
1,059
-
-
-
-
1,059
Police Special Detail
(407,067)
-
1,880,189
2,174,343
-
(701,221)
Premium of Tax Lien Sale
7,645,000
1,159,000
1,099,800
5,356,900
237,800
4,309,100
State Unemployment Insurance
-
-
65,069
29,852
-
35,217
Recreation - Senior Citizens Trips
6,624
-
11,693
16,653
-
1,664
Recreation - Soccer Program
25
-
110,076
109,030
-
1,071
Recreation - Swimming Pool
4,348
213
6,847
4,535
2,129
4,744
Recreation - Softball
30
-
1,540
1,570
-
-
Recreation - Baseball
190
-
2,275
1,205
-
1,260
Recreation - Basketball
214
-
7,395
7,609
-
-
Recreation - Volleyball
6,938
-
10,092
15,452
-
1,578
Recreation - Flag Football
5
-
-
-
-
5
Recreation - Football
-
-
5,586
-
-
5,586
Recreation - T-Ball/Baseball/Softball
9,466
3,455
7,535
-
-
20,456
Storm Recovery Trust
370
-
-
-
-
370
Tree Planting Program
840
-
-
-
-
840
Fire Prevention Penalties Trust
10,226
-
318,309
309,261
-
19,274
Escrow Deposits
3,642,471
-
2,552,962
1,388,721
-
4,806,712
Recreation - Soccer - Umpire Fees
(390)
-
25,002
24,560
-
52
13,901,308
$
1,334,269
$
8,063,935
$
11,493,248
$
294,544
$
11,511,720
$
B
B-9
B-9
B
Cash Activity
B-5
8,063,935
$
11,265,676
$
Interfund - Current Fund
B-7
-
227,572
8,063,935
$
11,493,248
$
Balance, June 30, 2023
Balance, June 30, 2022
86
CITY OF UNION CITY
EXHIBIT B-9
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF RESERVE FOR ENCUMBRANCES PAYABLE - OTHER TRUST FUND
Ref.
Balance, June 30, 2022
B
1,334,269
$
Increased by:
Reserve for Other Trust Fund Activity
B-8
294,544
1,628,813
Decreased by:
Encumbrances Paid
B-8
1,334,269
Balance, June 30, 2023
B
294,544
$
SCHEDULE OF CASH AND CASH EQUIVALENTS - CDA FUND
EXHIBIT B-10
Ref.
Balance, June 30, 2022
B
10,275
$
Increased by Cash Receipts:
Due from HUD CDBG
B-11
1,710,001
$
Reserve for Program Income
B-12
6,265
1,716,266
1,726,541
Decreased by Cash Disbursements:
Due to Current Fund
B-14
1,720,419
Balance, June 30, 2023
B
6,122
$
87
CITY OF UNION CITY
EXHIBIT B-11
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF DUE FROM HUD COMMUNITY DEVELOPMENT BLOCK GRANT - CDA FUND
Ref.
Balance, June 30, 2022
B
1,927,225
$
Increased by:
New Grant Authorization
B-13
1,053,888
2,981,113
Decreased by:
Cash Receipts
B-10
1,710,001
$
Cancelled
B-13
213
1,710,214
Balance, June 30, 2023
B
1,270,899
$
SCHEDULE OF RESERVE FOR PROGRAM INCOME - CDA FUND
EXHIBIT B-12
Ref.
Balance, June 30, 2022
-
$
Increased by:
Cash Receipts
B-10
6,265
6,265
Decreased by:
Reserve for Expenditures
B-13
6,265
Balance, June 30, 2023
-
$
88
CITY OF UNION CITY
EXHIBIT B-13
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF RESERVE FOR COMMUNITY DEVELOPMENT BLOCK GRANT - CDA FUND
Ref.
Balance, June 30, 2022
B
1,754,443
$
Increased by:
New Grant Authorization
B-11
1,053,888
$
Reserve for Program Income
B-12
6,265
Encumbrances
B
37,022
1,097,175
2,851,618
Decreased by:
Expenditures Paid by Current Fund
B-14
1,574,384
Cancelled
B-11
213
Encumbrances
B
265,401
1,839,998
Balance, June 30, 2023
B
1,011,620
$
SCHEDULE OF INTERFUNDS - CDA FUND
EXHIBIT B-14
Due To / From
Current Fund
Ref.
Decreased by:
Cash Disbursements
B-10
1,720,339
Increased by:
Expenditures Paid by Current Fund
B-13
1,574,304
Net Change in Interfunds
146,035
Balance, June 30, 2022
Interfunds Payable
B
146,035
Balance, June 30, 2023
B
-
$
89
CITY OF UNION CITY
EXHIBIT B-15
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF CASH AND CASH EQUIVALENTS - PUBLIC DEFENDER TRUST FUND
Ref.
Balance, June 30, 2022
B
1,800
$
Increased by Cash Receipts:
Reserve for Expenditures
B-16
8,180
9,980
Decreased by Cash Disbursements:
Due to Current Fund
B-17
9,980
Balance, June 30, 2023
B
-
$
SCHEDULE OF RESERVE FOR PUBLIC DEFENDER TRUST EXPENDITURES
EXHIBIT B-16
Ref.
Balance, June 30, 2022
B
1,800
$
Increased by:
Cash Receipts
B-15
8,180
9,980
Decreased by:
Paid by Current Fund
B-17
9,980
Balance, June 30, 2023
B
-
$
90
CITY OF UNION CITY
EXHIBIT B-17
TRUST FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF INTERFUNDS - PUBLIC DEFENDER TRUST FUND
Current
Fund
Ref.
Increased by:
Cash Disbursements
B-15
9,980
$
Decreased by:
Expenditures Paid by Current Fund
B-16
9,980
Net Change in Interfunds
-
Balance, June 30, 2022
B
-
Balance, June 30, 2023
B
-
$
91
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CITY OF UNION CITY
REPORT OF AUDIT
SUPPLEMENTARY DATA SECTION:
GENERAL CAPITAL FUND SCHEDULES
EXHIBIT C-2
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF CASH AND CASH EQUIVALENTS
Ref.
Balance, June 30, 2022
C
13,209,703
$
Increased by:
Premiums on Note Sales
C-1
162,451
$
Due from Current Fund
C-6
14,423,564
14,586,015
27,795,718
Decreased by:
Due from Current Fund
C-6
16,103,769
Balance, June 30, 2023
C
11,691,949
$
92
EXHIBIT C-3
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
ANALYSIS OF CASH AND CASH EQUIVALENTS
Receipts
Disbursements
Balance
Improvement
Transfers
Balance,
June 30, 2022
Miscellaneous
Authorizations
Miscellaneous
From
To
June 30, 2023
Fund Balance
387,476
$
162,451
$
-
$
-
$
432,000
$
-
$
117,927
$
Capital Improvement Fund
3,101,464
-
-
-
11,151,878
9,583,225
1,532,811
Encumbrances Payable
5,786,423
-
-
-
5,786,423
4,552,110
4,552,110
Reserve for Debt Service
185,705
-
-
-
156,698
-
29,007
Due from Current Fund
-
14,423,564
(10,230,732)
16,103,769
9,139,225
588,698
-
Improvement Authorizations:
Ord. 14-2011: Pave Bergenline Ave
-
-
(1,210)
-
-
-
1,210
Ord. 08-2013: Washington Park
74,064
-
47,394
-
26,670
-
-
Ord. 01-2014: Various Capital Improvements
(727,807)
-
450,637
-
34,850
1,214,047
753
Ord. 02-2014: Reconstruction of Summit Avenue
-
-
15,795
-
-
15,795
-
Ord. 2017-10: Improvements to 17th Street
-
-
18,343
-
-
18,343
-
Ord. 2017-13: Improvements to City Parks
-
-
10,200
-
12,775
33,620
10,645
Ord. 2017-18: Various Capital Improvements
1,725,823
-
876,098
-
651,316
342,195
540,604
Ord. 2017-19: Various Park Improvements
121,439
-
9,117
-
7,257
13,070
118,135
Ord. 2018-32: Various Road/Bridge Repairs
49,128
-
24,909
-
-
-
24,219
Ord. 2018-36: Various CapitalImprovements
(2,045,892)
-
873,125
-
922,888
6,611,184
2,769,279
Ord. 2019-17: Lead Water Service Replacement
14,844
-
14,844
-
-
-
-
Ord. 2020-05: Various Capital Improvements
444,733
-
64,075
-
521,483
140,825
-
Ord. 2020-16: Various Road Improvements
82,615
-
38,770
-
16,940
2,875
29,780
Ord. 2020-25: Various Sidewalk Repairs
105,387
-
87,293
-
18,094
-
-
Ord. 2020-26: Road Repaving & Repairs
163,350
-
131,467
-
31,883
-
-
Ord. 2021-02: Various Improv. & Equipment
3,346,151
-
2,116,050
-
6,891,968
1,980,633
(3,681,234)
Reso. 2022-04-05: Summit & 38th Garage
394,800
-
623,615
-
159,522
765,700
377,363
Reso. 2022-06-08: Central Ave. Improvements
-
-
1,000,000
-
-
1,000,000
-
Ord. 2022-08: Acquisition of Equipment &
-
-
3,097,646
-
872,354
5,670,000
1,700,000
Ord. 2022-09: Reconstruct DPW Facility -
-
-
30,155
-
-
3,000,000
2,969,845
Ord. 2022-14: Acquisition of 3316
-
-
600,000
-
-
600,000
-
Ord. 2022-15: Portable Traffic Signals
-
-
98,878
-
-
98,878
-
Ord. 2023-58: Central Ave Street Lighting
-
-
-
-
532,844
533,000
156
Ord. 2023-62: Various Road Improvements
-
-
-
-
-
300,000
300,000
Ord. 2023-66: Various Improvements -
-
-
3,531
-
647,130
950,000
299,339
13,209,703
$
14,586,015
$
-
$
16,103,769
$
38,014,198
$
38,014,198
$
11,691,949
$
C
C-2
C-2
C
93
EXHIBIT C-4
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - FUNDED
Ref.
Balance, June 30, 2022
C
74,211,465
$
Increased by:
Capital Lease Issued
C-13
225,134
74,436,599
Decreased by:
General Serial Bond Payment
C-9
4,850,000
$
Capital Lease Payment - HCIA
C-10
1,348,036
Capital Lease Payment
C-13
374,170
Green Acres Loan Payment
C-11
74,953
6,647,159
Balance, June 30, 2023
C
67,789,440
$
General Serial Bonds
64,420,000
$
Capital Lease Payable
1,181,923
Capital Lease Payable - HCIA
1,451,732
Green Acres Loans Payable
735,785
67,789,440
$
94
EXHIBIT C-5
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
Analysis of Ending Balance
Cancelled
Note Funded
Bond
Non-Financed
Improvement Description and
Balance
Improvement
by Budget
Balance
Anticipation
Improvement Authorizations
Authorizing Ordinance Number
June 30, 2022
Authorization
Appropriation
June 30, 2023
Notes
Expended
Unexpended
Ord. 2014-01: Various Capital Improvements
7,499,100
$
-
$
283,400
$
7,215,700
$
7,215,700
$
-
$
-
$
Ord. 2017-10: Improvements to Veterans Park
598,500
-
27,300
571,200
571,200
-
-
Ord. 2017-26: Acquisition of Real Property
1,282,500
-
16,300
1,266,200
1,266,200
-
-
Ord. 2018-36: Various Capital Improvements
10,311,764
-
220,000
10,091,764
10,091,764
-
-
Ord. 2021-02: Various Capital Equip. and Improv.
10,000,000
225,287
-
9,774,713
3,648,136
3,681,234
2,445,343
29,691,864
$
225,287
$
547,000
$
28,919,577
$
22,793,000
$
3,681,234
$
2,445,343
$
Ref.
C
C-7
C-12
C
Decreased by:
95
EXHIBIT C-6
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF DUE FROM CURRENT FUND
Ref.
Balance, June 30, 2022
C
-
$
Increased by:
Cash Disbursements
C-2
16,103,769
$
Appropriated in Current Budget for:
Additional Transitional Aid Projects
C-14
5,670,000
Capital Improvement Fund
C-14
3,469,225
25,242,994
25,242,994
Decreased by:
Anticipated as Revenue in Current Budget:
Capital Surplus Anticipated in Budget
C-1
432,000
Reserve for Retirement of Debt Service
C-15
156,698
Cash Receipts
C-2
14,423,564
Improvement Authorizations Paid by Current
C-7
10,230,732
25,242,994
Balance, June 30, 2023
C
-
$
96
EXHIBIT C-7
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
Improvement Description and
Original
Balance, June 30, 2022
2023
Paid or
Authorizations
Balance, June 30, 2023
Authorizing Ordinance Number
Amount
Funded
Unfunded
Encumbered
Authorizations
Charged
Cancelled
Encumbered
Funded
Unfunded
Ord. 2011-14: Ellsworth Park Improvement
1,016,252
$
-
$
-
$
-
$
-
$
(1,210)
$
-
$
-
$
1,210
$
-
$
Ord. 2013-08: Washington Park
5,508,000
74,064
-
-
-
47,394
-
26,670
-
-
Ord. 2014-01: Various Improvements and
Acquisition of Capital Equipment
35,000,000
-
312,293
173,947
-
450,637
-
34,850
-
753
Ord. 2014-02: Reconstruction of Summit Ave
300,000
-
-
15,795
-
15,795
-
-
-
-
Ord. 2017-10: Improvements to 17th Street
1,500,000
-
-
18,343
-
18,343
-
-
-
-
Ord. 2017-13: Improvements to City Parks
50,000
-
-
33,620
-
10,200
-
12,775
10,645
-
Ord. 2017-18: Various Capital Improvements
6,000,000
1,725,823
-
342,195
-
876,098
-
651,316
540,604
-
Ord. 2017-19: Various Park Improvements
245,000
121,439
-
13,070
-
9,117
-
7,257
118,135
-
Ord. 2018-32: Various Road & Bridge Repairs
175,580
49,128
-
-
-
24,909
-
-
24,219
-
Ord. 2018-36: Various Improvements and
Acquisition of Capital Equipment
10,311,764
-
3,265,872
1,299,420
-
873,125
-
922,888
-
2,769,279
Ord. 2019-17: Lead Water Service Replacement
200,000
14,844
-
-
-
14,844
-
-
-
-
Ord. 2020-05: Various Capital Improvements
750,000
444,733
-
140,825
-
64,075
444,000
77,483
-
-
Ord. 2020-16: Various Road Improvements
200,000
82,615
-
2,875
-
38,770
-
16,940
29,780
-
Ord. 2020-25: Various Sidewalk Repairs
120,000
105,387
-
-
-
87,293
-
18,094
-
-
Ord. 2020-26: Road Repaving & Repairs
175,000
163,350
-
-
-
131,467
-
31,883
-
-
Ord. 2021-02: Various Improv. & Equipment
10,000,000
-
3,346,151
1,980,633
-
2,116,050
225,287
540,104
-
2,445,343
Reso. 2022-04-05: Summit & 38th Garage
1,160,500
394,800
-
765,700
-
623,615
-
159,522
377,363
-
Reso. 2022-06-08: Central Ave. Improvements
1,000,000
-
-
1,000,000
-
1,000,000
-
-
-
-
Ord. 2022-08: Acquisition of Equipment &
Imp. Additional Transitional Aid
5,670,000
-
-
-
5,670,000
3,097,646
-
872,354
1,700,000
-
Ord. 2022-09: Reconstruct DPW Facility -
Additional Transitional Aid
3,000,000
-
-
-
3,000,000
30,155
-
-
2,969,845
-
Ord. 2022-14: Acquisition of 3316
Palisade Ave
600,000
-
-
-
600,000
600,000
-
-
-
-
Ord. 2022-15: Portable Traffic Signals
98,878
-
-
-
98,878
98,878
-
-
-
-
Ord. 2023-58: Central Ave Street Lighting
533,000
-
-
-
533,000
-
-
532,844
156
-
Ord. 2023-62: Various Road Improvements
300,000
-
-
-
300,000
-
-
-
300,000
-
Ord. 2023-66: Various Improvements -
Bergenline Avenue Phase 2
950,000
-
-
-
950,000
3,531
-
647,130
299,339
-
3,176,183
$
6,924,316
$
5,786,423
$
11,151,878
$
10,230,732
$
669,287
$
4,552,110
$
6,371,296
$
5,215,375
$
Ref.
C
C
C-8
C-14
C-6
C-8
C
C
Deferred Charges Unfunded
C-5
225,287
$
Capital Improvement Fund
C-14
444,000
669,287
$
97
EXHIBIT C-8
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF ENCUMBRANCES PAYABLE
Ref.
Balance, June 30, 2022
C
5,786,423
$
Increased by:
Charges to Improvement Authorizations
C-7
4,552,110
10,338,533
Decreased by:
Reversal of Prior Year Balance
C-7
5,786,423
Balance, June 30, 2023
C
4,552,110
$
98
EXHIBIT C-9
Sheet 1 of 2
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF GENERAL SERIAL BONDS
Maturities of Bonds Outstanding
Date of
Original
June 30, 2023
Interest
Balance
Balance
Purpose
Issue
Amount
Date
Amount
Rate %
June 30, 2022
Decrease
June 30, 2023
ERI Pension Bonds
12/15/2002
15,735,000
$
01/01/2024
375,000
$
6.250
9,825,000
$
315,000
$
9,510,000
$
01/01/2025
475,000
6.250
01/01/2026
575,000
6.250
01/01/2027
690,000
6.250
01/01/2028
825,000
6.250
01/01/2029
975,000
6.250
01/01/2030
1,125,000
6.250
01/01/2031
1,300,000
6.250
01/01/2032
1,475,000
6.250
01/01/2033
1,695,000
6.250
2016 General Obligation Bonds
10/27/2016
10,300,000
07/15/2023
725,000
2.500
7,150,000
705,000
6,445,000
Obligation Bonds
07/15/2024
745,000
2.500
07/15/2025
770,000
2.500
07/15/2026
795,000
2.500
07/15/2027
815,000
2.500
07/15/2028
840,000
2.625
07/15/2029
865,000
3.000
07/15/2030
890,000
3.000
2018 Refunding Bonds
09/14/2017
18,805,000
11/01/2023
3,875,000
5.000
7,705,000
3,830,000
3,875,000
General Obligaton Bonds,
01/21/2021
37,845,000
08/01/2024
2,855,000
0.050
37,845,000
-
37,845,000
Series 2021 (Qualified) (Callable)
08/01/2025
2,895,000
2.250
08/01/2026
2,915,000
2.250
08/01/2027
2,940,000
2.250
08/01/2028
2,950,000
2.250
08/01/2029
2,980,000
2.250
08/01/2030
2,990,000
2.250
08/01/2031
5,055,000
2.250
08/01/2032
5,120,000
2.250
08/01/2033
7,145,000
2.250
99
EXHIBIT C-9
Sheet 2 of 2
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF GENERAL SERIAL BONDS
Maturities of Bonds Outstanding
Date of
Original
June 30, 2023
Interest
Balance
Balance
Purpose
Issue
Amount
Date
Amount
Rate %
June 30, 2022
Decrease
June 30, 2023
General Obligaton Bonds,
01/21/2021
6,745,000
$
08/01/2024
855,000
$
1.550
6,745,000
$
-
$
6,745,000
$
Taxable Series 2021 (Qualified) (Non-Callable)
08/01/2025
885,000
1.550
08/01/2026
925,000
1.550
08/01/2027
960,000
1.550
08/01/2028
1,000,000
1.550
08/01/2029
1,040,000
1.550
08/01/2030
1,080,000
1.550
69,270,000
$
4,850,000
$
64,420,000
$
Ref.
C
C-4
C
100
EXHIBIT C-10
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF CAPITAL LEASE PAYABLE - HCIA
Maturities of Lease Obligations
Date of
Original
June 30, 2023
Interest
Balance
Lease
Balance
Purpose
Issue
Amount
Date
Amount
Rate %
June 30, 2022
Payments
June 30, 2023
NHRFR 2004
01/13/2004
4,766,625
$
01/01/2024
585,375
$
5.330
1,120,575
$
535,200
$
585,375
$
NHRFR 2006 A
01/12/2006
1,244,340
01/01/2024
122,093
4.200
239,168
117,075
122,093
NHRFR 2006 B
01/12/2006
1,152,353
01/01/2024
118,748
5.400
230,806
112,058
118,748
NHRFR 2011 A
10/18/2011
1,592,220
09/01/2023
175,613
5.700
342,863
167,250
175,613
NHRFR 2011 B
10/18/2011
3,478,800
09/01/2023
449,903
8.000
866,356
416,453
449,903
2,799,768
$
1,348,036
$
1,451,732
$
Ref.
C
C-4
C
101
EXHIBIT C-11
Sheet 1 of 2
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF GREEN ACRES LOANS PAYABLE
Maturities of Loan Obligations
Date of
Original
June 30, 2023
Interest
Balance
Loan
Balance
Purpose
Issue
Amount
Date
Amount
Rate %
June 30, 2022
Payments
June 30, 2023
Swimming Pool Improvements
12/10/2010
800,000
$
09/10/2023
21,425
$
2.00
387,086
$
42,214
$
344,872
$
03/10/2024
21,639
2.00
09/10/2024
21,855
2.00
03/10/2025
22,074
2.00
09/10/2025
22,295
2.00
03/10/2026
22,518
2.00
09/10/2026
22,743
2.00
03/10/2027
22,970
2.00
09/10/2027
23,200
2.00
03/10/2028
23,432
2.00
09/10/2028
23,666
2.00
03/10/2029
23,903
2.00
09/10/2029
24,142
2.00
03/10/2030
24,383
2.00
09/10/2030
24,627
2.00
17th Street Park Improvements
12/10/2010
70,000
09/10/2023
1,875
$
2.00
33,869
3,693
30,176
03/10/2024
1,893
2.00
09/10/2024
1,912
2.00
03/10/2025
1,931
2.00
09/10/2025
1,951
2.00
03/10/2026
1,970
2.00
09/10/2026
1,990
2.00
03/10/2027
2,010
2.00
09/10/2027
2,030
2.00
03/10/2028
2,050
2.00
09/10/2028
2,071
2.00
03/10/2029
2,092
2.00
09/10/2029
2,112
2.00
03/10/2030
2,134
2.00
09/10/2030
2,155
2.00
102
EXHIBIT C-11
Sheet 2 of 2
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF GREEN ACRES LOANS PAYABLE
Maturities of Loan Obligations
Date of
Original
June 30, 2023
Interest
Balance
Loan
Balance
Purpose
Issue
Amount
Date
Amount
Rate %
June 30, 2022
Payments
June 30, 2023
Park Avenue Playground
05/16/2014
590,143
$
08/16/2023
14,741
$
2.00
389,783
$
29,046
$
360,737
$
02/16/2024
14,888
2.00
08/16/2024
15,037
2.00
02/16/2025
15,188
2.00
08/16/2025
15,340
2.00
02/16/2026
15,493
2.00
08/16/2026
15,648
2.00
02/16/2027
15,804
2.00
08/16/2027
15,962
2.00
02/16/2028
16,122
2.00
08/16/2028
16,283
2.00
02/16/2029
16,446
2.00
08/16/2029
16,611
2.00
02/16/2030
16,777
2.00
08/16/2030
16,944
2.00
02/16/2031
17,114
2.00
08/16/1931
17,285
2.00
02/16/2032
17,458
2.00
08/16/1932
17,633
2.00
02/16/2033
17,809
2.00
08/16/2033
17,987
2.00
02/16/2034
18,167
2.00
810,738
$
74,953
$
735,785
$
Ref.
C
C-4
C
103
EXHIBIT C-12
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF BOND ANTICIPATION NOTES
Original
Decreased by:
Improvement Description and
Issue
Issue
Date of
Interest
Balance
Notes
Reclassify
Notes
Principal
Balance
Authorizing Ordinance Number
Amount
Date
Issue
Maturity
Rate
June 30, 2022
Renewed
and Adjust
Refunded
Paydown
June 30, 2023
HCIA Tax-Exempt Pooled Notes, Series 2022B-1
2014-01
Various Capital Improvements/Acquisition
of Various Capital Equipment
739,000
$
09/20/2019
08/05/2022
08/04/2023
3.00%
-
$
711,600
$
-
$
-
$
-
$
711,600
$
2017-10
Improvements to 17th Street
598,500
09/20/2019
08/05/2022
08/04/2023
3.00%
-
571,200
-
-
-
571,200
2017-26
Acquisition of Real Property
1,282,500
09/20/2019
08/05/2022
08/04/2023
3.00%
-
1,266,200
-
-
-
1,266,200
2018-36
Various Improvements and
Acquisition of Capital Equipment
5,000,000
09/20/2019
08/05/2022
08/04/2023
3.00%
-
4,780,000
-
-
-
4,780,000
HCIA Tax-Exempt Pooled Notes, Series 2021C-1
2014-01
Various Capital Improvements/Acquisition
of Various Capital Equipment
739,000
09/20/2019
08/17/2021
08/16/2022
1.00%
739,000
-
-
711,600
27,400
-
2017-10
Improvements to 17th Street
598,500
09/20/2019
08/17/2021
08/16/2022
1.00%
598,500
-
-
571,200
27,300
-
2017-26
Acquisition of Real Property
1,282,500
09/20/2019
08/17/2021
08/16/2022
1.00%
1,282,500
-
-
1,266,200
16,300
-
2018-36
Various Improvements and
Acquisition of Capital Equipment
5,000,000
09/20/2019
08/17/2021
08/16/2022
1.00%
5,000,000
-
-
4,780,000
220,000
-
HCIA Tax-Exempt Pooled Notes, Series 2022A-1
2021-02
Various Capital Equipment
3,648,136
04/18/2022
04/18/2022
04/17/2023
3.00%
10,000,000
-
(6,351,864)
3,648,136
-
-
2018-36
Various Capital Equipment
5,311,764
04/18/2022
04/18/2022
04/17/2023
3.00%
-
-
5,311,764
5,311,764
-
-
2014-01
Various Capital Improvements/Acquisition
of Various Capital Equipment
1,040,100
03/07/3219
04/18/2022
04/17/2023
3.00%
-
-
1,040,100
1,040,100
-
-
2014-01
Various Capital Improvements/Acquisition
of Various Capital Equipment
7,000,000
07/06/2015
04/18/2022
04/17/2023
3.00%
5,720,000
-
-
5,464,000
256,000
-
HCIA Tax-Exempt Pooled Notes, Series 2023A
2021-02
Various Capital Equipment
3,648,136
04/18/2022
04/06/2023
04/05/2024
4.25%
-
3,648,136
-
-
-
3,648,136
2018-36
Various Capital Equipment
5,311,764
04/18/2022
04/06/2023
04/05/2024
4.25%
-
5,311,764
-
-
-
5,311,764
2014-01
Various Capital Improvements/Acquisition
of Various Capital Equipment
1,040,100
03/07/3219
04/06/2023
04/05/2024
4.25%
-
1,040,100
-
-
-
1,040,100
2014-01
Various Capital Improvements/Acquisition
of Various Capital Equipment
7,000,000
07/06/2015
04/06/2023
04/05/2024
4.25%
-
5,464,000
-
-
-
5,464,000
23,340,000
$
22,793,000
$
-
$
22,793,000
$
547,000
$
22,793,000
$
Ref.
C
contra
contra
C-5
C
Series 2021C-1
7,620,000
$
Series 2023A
15,464,000
$
Series 2022A-1
15,720,000
Series 2022B-1
7,329,000
23,340,000
$
22,793,000
$
104
EXHIBIT C-13
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF CAPITAL LEASE PAYABLE
Maturities of Lease Obligations
Increased by:
Date of
Original
June 30, 2023
Interest
Balance
New
Budget
Balance
Purpose
Issue
Amount
Date
Amount
Rate %
June 30, 2022
Leases
Appropriation
June 30, 2023
Street Sweeper
11/25/2021
248,357
11/25/2023
48,187
$
2.99
248,357
-
46,787
201,570
11/25/2024
49,628
2.99
11/25/2025
51,113
2.99
11/25/2026
52,642
2.99
Ambulance
07/29/2019
289,970
07/29/2023
60,051
3.68
180,231
-
57,918
122,313
07/29/2024
62,262
3.68
Ambulance
11/25/2021
319,776
11/25/2023
62,045
2.99
319,776
-
60,243
259,533
11/25/2024
63,900
2.99
11/25/2025
65,810
2.99
11/25/2026
67,778
2.99
Sanitation Truck
09/20/2019
192,142
Matured in Fiscal Year 2023.
66,390
-
66,390
-
Various Vehicles
08/20/2020
35,411
05/01/2024
7,210
*
21,644
-
6,907
14,737
05/01/2025
7,527
*
Various Vehicles
08/20/2020
397,674
11/01/2023
80,047
*
240,257
-
77,042
163,215
11/01/2024
83,168
*
Tahoe and
11/15/2021
274,933
04/01/2024
53,668
*
218,893
-
51,706
167,187
Interceptors
04/01/2025
55,703
*
04/01/2026
57,816
*
Ford Explorer
03/23/2022
35,411
09/01/2023
6,507
*
35,411
-
7,177
28,234
09/01/2024
6,862
*
09/01/2025
7,235
*
09/01/2026
7,630
*
Senior Bus and
08/01/2022
225,134
08/01/2023
41,009
*
-
225,134
-
225,134
Two Vehicles
08/01/2024
42,453
*
08/01/2025
44,754
*
08/01/2026
47,180
*
08/01/2027
49,738
*
1,330,959
$
225,134
$
374,170
$
1,181,923
$
Ref.
C
C-4
C-4
C
Decreased by:
105
EXHIBIT C-14
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF CAPITAL IMPROVEMENT FUND
Ref.
Balance, June 30, 2022
C
3,101,464
$
Increased by:
2023 Budget Appropriation
C-6
3,469,225
$
2023 Additional Transitional Aid
C-6
5,670,000
Cancelled Ord. 2020-05
C-7
444,000
9,583,225
12,684,689
Decreased by:
Improvement Authorizations
Ord. 2022-08: Acquisition of Equipment &
5,670,000
Ord. 2022-09: Reconstruct DPW Facility -
3,000,000
Ord. 2022-14: Acquisition of 3316
600,000
Ord. 2022-15: Portable Traffic Signals
98,878
Ord. 2023-58: Central Ave Street Lighting
533,000
Ord. 2023-62: Various Road Improvements
300,000
Ord. 2023-66: Various Improvements -
950,000
C-7
11,151,878
Balance, June 30, 2023
C
1,532,811
$
SCHEDULE OF RESERVE FOR RETIREMENT OF DEBT SERVICE
EXHIBIT C-15
Ref.
Balance, June 30, 2022
C
185,705
$
Decreased by:
Anticipated as Revenue in Current Budget
C-6
156,698
Balance, June 30, 2023
C
29,007
$
106
EXHIBIT C-16
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Improvement
Improvement Description and
Balance
Reclassify
Authorization
Balance
Authorizing Ordinance Number
June 30, 2022
and Adjust
Cancelled
June 30, 2023
Ord. 2014-01: Various Capital Improvements
and Acquisition of Various Capital Equipment
1,040,100
$
(1,040,100)
$
-
$
-
$
Ord. 2017-10: Improvements to 17th Street
-
-
-
-
Ord. 2017-26: Acquisition of Real Property
-
-
-
-
Ord. 2018-36: Various Capital Equipment
and Improvements
5,311,764
(5,311,764)
-
-
Ord. 2021-02: Various Capital Equipment
and Improvements
-
6,351,864
225,287
6,126,577
6,351,864
$
-
$
225,287
$
6,126,577
$
Ref.
C
C-5
C-5
C
Decreased by:
107
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CITY OF UNION CITY
REPORT OF AUDIT
SUPPLEMENTARY DATA SECTION:
GENERAL FIXED ASSETS SCHEDULES
EXHIBIT D-1
CITY OF UNION CITY
GENERAL FIXED ASSETS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
SCHEDULE OF CHANGES IN FIXED ASSETS BY CLASS
Balance
Balance
June 30, 2022
Additions
Dispositions
June 30, 2023
Land
20,351,200
$
-
$
-
$
20,351,200
$
Buildings and Improvements
50,932,213
392,196
-
51,324,409
Machinery and Equipment
15,317,057
792,389
-
16,109,446
86,600,470
$
1,184,585
$
-
$
87,785,055
$
Ref.
D
D-2
D-2
D
SCHEDULE OF INVESTMENT IN GENERAL FIXED ASSETS
EXHIBIT D-2
Ref.
Balance, June 30, 2022
D
86,600,470
$
Increased by:
Additions
D-1
1,184,585
Balance, June 30, 2023
D
87,785,055
$
108
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CITY OF UNION CITY
REPORT OF AUDIT
OTHER REPORTING:
GOVERNMENT AUDITING STANDARDS
iopasdfghjklzxcvbnmqwertyuiopasdfg
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DONOHUE GIRONDA DORIA TOMKINS LLC
1 Harmon Meadow Blvd, 3002
Secaucus, NJ 07094
―
191 Central Ave, 2nd Fl
Newark, NJ 07103
―
310 Broadway
Bayonne, NJ 07002
CERTIFIED PUBLIC ACCOUNTANTS AND
REGISTERED MUNICIPAL ACCOUNTANTS
www.dgdcpas.com | 201-275-0823
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
To 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 sheets – regulatory basis, of each Fund and the
comparative statement of General Fixed Assets – regulatory basis, as of June 30, 2023 and 2022, and the related comparative
statements of operations and changes in fund balance – regulatory basis, statement of revenues – regulatory basis and
statement of appropriations – regulatory basis, of the Current Fund, and the statement of changes in fund balance – regulatory
basis, of the General Capital Fund, for the years then ended, and the related notes to the financial statements, and have issued
our report thereon dated December 28, 2023. The opinion to those financial statements is followed by an emphasis of matter
paragraph regarding the City’s dependence on Transitional Aid and the potential material impact on the City should the
Transitional Aid be reduced.
As described in Note 1, 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.
Report on 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) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose
of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion 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.
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 City’s financial statements will not be prevented, or detected and corrected, on
a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe
than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not
designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and
therefore, material weaknesses or significant deficiencies may exist that have not been identified. We identified a certain
deficiency in internal control, described in the accompanying schedule of findings and questioned costs as Finding 2023-001
that we consider to be a material weakness.
109
Report on 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 financial statements. 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 is required to be reported under Government Auditing
Standards.
We noted additional instances of 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
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings
identified in our audit and 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 them.
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 City’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 City’s internal
control and compliance. Accordingly, this communication is not suitable for any other purpose.
DONOHUE, GIRONDA, DORIA & TOMKINS, LLC
Certified Public Accountants
MARK W. BEDNARZ
RMA No. 547
Secaucus, New Jersey
December 28, 2023
110
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CITY OF UNION CITY
REPORT OF AUDIT
OTHER REPORTING:
UNIFORM GUIDANCE & NJ OMB 15-08
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DONOHUE GIRONDA DORIA TOMKINS LLC
1 Harmon Meadow Blvd, 3002
Secaucus, NJ 07094
―
191 Central Ave, 2nd Fl
Newark, NJ 07103
―
310 Broadway
Bayonne, NJ 07002
CERTIFIED PUBLIC ACCOUNTANTS AND
REGISTERED MUNICIPAL ACCOUNTANTS
www.dgdcpas.com | 201-275-0823
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE
FOR EACH MAJOR FEDERAL AND STATE PROGRAM AND
ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY
THE UNIFORM GUIDANCE AND NEW JERSEY OMB CIRCULAR 15-08
To 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
Opinion on 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 OMB 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, 2023. 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.
In our opinion, the City complied, in all material respects, with the 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, 2023.
Basis for Opinion on Each Major Federal and State Program
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; the audit requirements of the Division of Local Government Services, Department of
Community Affairs, State of New Jersey (the “Division”); the audit requirements of Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance) and N.J. OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid
(NJ OMB 15-08). Our responsibilities under those standards, the Uniform Guidance and NJ OMB 15-08 are further
described in the “Auditor’s Responsibilities for the Audit of Compliance” section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant
ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion on compliance for each major federal and state program. Our audit does not provide a legal
determination of the City’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and
maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and
provisions of contracts or grant agreements applicable to the City’s federal and state programs.
111
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements
referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our
audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an
audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, the auditing
requirements of the, Uniform Guidance and NJ OMB 15-08 will always detect material noncompliance when it exists. The
risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with
the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or
in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s
compliance with the requirements of each major federal and state program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, the auditing
requirements of the Division, the Uniform Guidance and NJ OMB 15-08, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit
procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s
compliance with the compliance requirements referred to above and performing such other procedures as we
considered necessary in the circumstances.
Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit
procedures that are appropriate in the circumstances and to test and report on internal control over compliance in
accordance with the Uniform Guidance and NJ OMB 15-08, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we
identified during the audit.
Report on 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 or State program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a 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 “Auditor’s
Responsibilities for the Audit of Compliance” section above and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance.
Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal
control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, no such opinion is expressed.
112
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 the Uniform Guidance and N.J. OMB Circular
15-08. Accordingly, this report is not suitable for any other purpose.
DONOHUE, GIRONDA, DORIA & TOMKINS, LLC
Certified Public Accountants
MARK W. BEDNARZ
RMA No. 547
Secaucus, New Jersey
December 28, 2023
113
Schedule 1
Page 1 of 2
CITY OF UNION CITY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Federal Grantor /
Federal
Pass through Grantor /
Assistance
Pass-through Entity
Program
Provided
Total
Cluster Title / Program Title
Listing
Identifying Number
or Award
to
Federal
Cumulative
Grant Award Period
Number
or Direct Award
Amount
Subrecipients
Expenditures
Expenditures
United States Department of Housing and Urban Development
Passed through: Not applicable
Cluster: CDBG Entitlement Grants
Program: Community Development Block Grant (CDBG)
07/01/2022
-
06/30/2023
14.218
Direct Award
-
$
60,936
$
717,820
$
725,295
07/01/2021
-
06/30/2022
14.218
Direct Award
1,087,008
-
607,712
648,680
07/01/2020
-
06/30/2021
14.218
Direct Award
1,059,939
-
168,390
1,130,436
07/01/2019
-
06/30/2020
14.218
Direct Award
1,019,605
-
49,887
1,470,574
07/01/2018
-
06/30/2019
14.218
Direct Award
1,003,951
-
-
1,064,500
Program: COVID-19 CDBG-CV
07/01/2020
-
06/30/2021
14.218
Direct Award
1,200,000
-
30,495
702,783
Program Income
-
80
160
Total Assistance Listing No. 14.218
60,936
1,574,384
Total CDBG Entitlement Grants Cluster
60,936
1,574,384
Total United States Department of Housing and Urban Development …......................................................
60,936
$
1,574,384
$
United States Department of Justice
Passed through: Not applicable
Cluster: Not Applicable
Program: Bulletproof Vest Partnership Program
04/01/2021
-
08/31/2023
16.607
Direct Award
5,515
$
-
$
3,826
$
5,515
$
04/01/2022
-
08/31/2024
16.607
Direct Award
13,640
-
5,856
5,856
Total Assistance Listing No. 16.607
-
9,682
Program: COPS Technology & Equipment
03/15/2022
-
03/31/2024
16.710
Direct Award
1,100,000
-
241,027
241,027
Total Assistance Listing No. 16.710
-
241,027
Program: Body Worn Camera Policy and Implementation
Cumuluative and Ongoing
16.835
Direct Award
476,892
-
32,510
51,140
Total Assistance Listing No. 16.835
-
32,510
Total United States Department of Justice …...................................................................................................
-
$
283,219
$
United States Department of Transportation
Passed through NJ Department of Law and Public Safety
Program: National Highway Traffic Safety Association - Click it or Ticket
05/22/2023 - 06/25/2023
20.600
100-066-1160-165
14,000
$
-
$
6,090
$
6,090
$
05/22/2022 - 06/26/2022
20.600
100-066-1160-165
14,000
-
9,200
14,000
Total Assistance Listing No. 20.600
-
15,290
Cluster: Highway Safety
Program: National Priority Safety Programs
Non-Motorized Safety
Pedestrian Safety Grant
10/01/2021 - 09/30/2022
20.616
100-066-1160-***
35,000
-
33,000
33,000
Program: Distracted Driving Crackdown Grant
04/01/2023 - 04/30/2023
20.616
100-066-1160-***
12,250
-
12,250
12,250
Program: Drive Sober or Get Pulled Over
08/19/2022 - 09/05/2022
20.616
100-066-1160-***
8,750
-
1,740
1,740
Program: Drive Sober or Get Pulled Over Holiday Crackdown
12/02/2022 - 01/01/2023
20.616
100-066-1160-***
10,500
-
8,120
8,120
Total Assistance Listing No. 20.616
-
55,110
Total Highway Safety Cluster
-
55,110
Total United States Department of Transportation ….....................................................................................
-
$
70,400
$
See Accompanying Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance.
114
Schedule 1
Page 2 of 2
CITY OF UNION CITY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Federal Grantor /
Federal
Pass through Grantor /
Assistance
Pass-through Entity
Program
Provided
Total
Cluster Title / Program Title
Listing
Identifying Number
or Award
to
Federal
Cumulative
Grant Award Period
Number
or Direct Award
Amount
Subrecipients
Expenditures
Expenditures
United States Department of Treasury
Passed through: Not applicable
Cluster: Not Applicable
Program: ARP-State and Local Fiscal Recovery Funds
05/24/2021 - 12/31/2024
21.027
Direct Award
13,309,091
$
-
$
3,154,534
$
14,008,918
$
Total Assistance Listing No. 21.027
-
3,154,534
Total United States Department of Treasury …...............................................................................................
-
$
3,154,534
$
United States Department of Health and Human Services
Passed through: NJDepartment of Health
Cluster: Not Applicable
Program: COVID-19 Vaccination Supplemental Funding
07/01/2021
-
06/30/2022
93.268
046-4230-100-558
50,000
$
5,294
$
50,000
$
07/01/2022
-
06/30/2023
93.268
046-4230-100-558
50,000
48,062
48,062
Total Assistance Listing No. 93.268
-
53,356
Passed through: Not applicable
Cluster: Not Applicable
Program: Drug Free Community Programs (FAIN: H79SP020734)
09/30/2021 - 08/31/2022
93.276
Direct Award
125,000
-
40,062
125,000
09/30/2022 - 09/29/2023
93.276
Direct Award
125,000
-
97,507
97,507
Total Assistance Listing No. 93.276
-
137,569
Passed through: NJDepartment of Health
Cluster: Not Applicable
Program: Strengthening Local Public Health Capacity
07/01/2021 - 06/30/2022
93.323
100-046-4230-***
291,042
-
40,830
264,458
07/01/2022 - 06/30/2023
93.323
100-046-4230-***
274,735
-
254,271
254,271
Total Assistance Listing No. 93.276
-
295,101
Total United States Department of Health and Human Services …...............................................................
-
$
486,026
$
TOTAL FEDERAL AWARDS
60,936
$
5,568,563
$
N/A - Information Not Available or Not Applicable
See Accompanying Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance.
115
Schedule 2
Sheet 1 of 2
CITY OF UNION CITY
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
State Grantor /
Pass through Grantor /
State Account
Program
Provided
Total
Program Title /
Number or
or Award
to
State
Cumulative
Grant Award Period
Program Code
Amount
Subrecipients
Expenditures
Expenditures
NJ Department of Environmental Protection
Passed through: Not applicable
Program: Clean Communities
07/01/2019
-
06/30/2021
4900-765-004
84,097
$
-
$
405
$
84,454
$
07/01/2020
-
09/30/2022
4900-765-004
89,567
-
275
89,567
07/01/2021
-
09/30/2023
4900-765-004
93,039
-
77,827
77,827
Total Clean Communities
-
78,507
Program: Recycling Tonnage
07/01/2020
-
06/30/2021
100-042-4910-224
122,918
-
122,918
122,918
07/01/2019
-
06/30/2020
100-042-4910-224
95,936
-
4,809
4,809
07/01/2021
-
06/30/2022
100-042-4910-224
134,562
-
134,562
134,562
Total Recycling Tonnage
-
262,289
Program: Clean Energy Electric Vehicle Tourism Grant
06/01/2022
-
05/30/2023
*
42,000
-
11,223
11,223
Total Clean Energy Electric Vehicle Tourism Grant
-
11,223
Program: Green Acres Trust:
Green Acres - 4100 Palisade Ave.
06/17/2022
*
*
1,000,000
$
-
15,200
15,200
$
Green Acres - Reservoir Purchase
09/01/2017
-
09/01/2018
100-072-4870-038
1,000,000
-
80,618
80,618
06/20/2016
-
04/07/2017 4800-DJ-2561-0910-01-033
470,000
-
177,382
470,000
Total Green Acres Trust
-
273,200
Total NJ Department of Environmental Protection …..............................................................................................
-
$
625,219
$
NJ Department of Treasury
Passed through the County of Hudson:
Program: Municipal Alliance to Prevent Alcoholism and Drug Abuse
07/01/2022
-
06/30/2023
100-082-C001-004
21,005
$
-
$
21,005
$
21,005
$
07/01/2021
-
06/30/2022
100-082-C001-004
21,005
-
1,599
21,005
07/01/2022
-
06/30/2023
406-7-2022
7,616
-
7,616
7,616
Total Municipal Alliance to Prevent Alcoholism and Drug Abuse
-
22,604
Total NJ Department of Treasury ….........................................................................................................................
-
$
22,604
$
NJ Department of Law and Public Safety
Passed through: Not applicable
Program: Body Armor Replacement Fund
01/01/2022
-
12/31/2026
718-066-1020-***
7,000
$
-
$
7,000
$
7,000
$
01/01/2023
-
12/31/2027
718-066-1020-***
9,471
-
2,682
2,682
Total Body Armor Replacement Fund
-
9,682
Drunk Driving Enforcement Fund
07/01/2017
-
06/30/2018
6400-100-078-6400-000-YYY
20,850
-
435
18,205
Total Drunk Driving Enforcement Fund
-
435
Total NJ Department of Law and Public Safety …...................................................................................................
-
$
10,117
$
See Accompanying Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance.
116
Schedule 2
Sheet 2 of 2
CITY OF UNION CITY
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
State Grantor /
Pass through Grantor /
State Account
Program
Provided
Total
Program Title /
Number or
or Award
to
State
Cumulative
Grant Award Period
Program Code
Amount
Subrecipients
Expenditures
Expenditures
NJ Department of Transportation:
Passed through: Not applicable
Program: Municipal Aid
Various Streets 2021 - FY 21 Municipal Aid
05/01/2019
-
03/25/2021
2021-480-078-6320-10-AOP-6010
720,000
$
-
$
78,098
$
775,453
$
Program: Others
Palisade Ave Section 3
12/01/2020
-
06/30/2023
2021-480-078-6320-AOG-6010
3,500,000
-
935,927
3,500,000
Central Ave Corridor Improvements - Local Aid Infrastructure
07/01/2021
-
06/30/2022
2014-480-078-6320-ALM-6010
900,000
-
472,377
900,000
13th, 42nd and 47th Streets - Municipal Aid Program
07/01/2021
-
06/30/2022
480-078-6010-***
862,176
-
862,176
862,176
13th, 37th and 38th Streets - Municipal Aid Program
07/01/2022
-
*
480-078-6010-***
881,990
-
170,066
170,066
Total Combined Transportation Programs
-
2,518,644
Total NJ Department of Transportation …...............................................................................................................
-
$
2,518,644
$
NJ Department of Community Affairs:
Passed through: Not applicable
Program: Urban Enterprize Zone (UEZ) Assistance Fund
7/1/2021
-
*
2023-022-8030-763-041
885,746
$
-
$
360,129
$
360,129
$
-
360,129
Total NJ Department of Community Affairs …........................................................................................................
-
$
360,129
$
TOTAL STATE FINANCIAL ASSISTANCE
-
$
3,536,713
$
N/A - Information Not Available or Not Applicable
See Accompanying Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance.
117
CITY OF UNION CITY
NOTES TO SCHEDULES OF EXPENDITURES OF
FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED JUNE 30, 2023
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of the City of
Union City (the “City”) under programs of the federal government for the year ended June 30, 2023. The information in the
SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the
SEFA represents only a selected portion of the operations of the City, it is not intended to and does not present the financial
position or changes in fund balance of the City.
The accompanying schedule of expenditures of State financial assistance (SESFA) includes New Jersey State (the “State”)
award activity of the City under programs of the State government for the year ended June 30, 2023. The information in the
SESFA is presented in accordance with the requirements of New Jersey Office of Management and Budget Circular 15-08,
Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid (NJ OMB Circular 15-08). Because the
SESFA represents only a selected portion of the operations of the City, it is not intended to and does not present the financial
position or changes in fund balance of the City.
Reporting Entity
Administration of the federal and State grant programs awarded to the City is performed by the various departments of the
City. The City is the reporting entity for these federal and State grant programs. The City, for purposes of the SEFA and
SESFA, includes all of the primary government as defined criteria established by the Governmental Accounting Standards
Board. The City administers certain federal and state award programs through subrecipients. Those subrecipients are not
considered part of the City’s reporting entity.
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 accounting practices which differ from those required by
accounting principles generally accepted in the United States of America, as described in the following paragraph.
In accordance with directives from the Division, the City fully realizes revenues and charges appropriations when grants are
adopted by the governing body in the budget of its Current Fund. Grant revenues are realized in the Current Fund and the
amount awarded is accounted for as a receivable. Appropriations are charged in the Current Fund and the amount allotted for
spending is accounted for as an appropriated grant reserve. Programs within the General Capital Fund and various trust funds
are accounted for within the equivalent revenue accounts for those respective funds. Expenditures are measured from
payments charged directly to specific grant programs.
Local Contributions
Local matching contributions are required by certain federal and state grants. The amount or percentage of matching
contributions varies with each program. Local matching contributions are generally raised in the Current Fund budget.
NOTE 2. INDIRECT COST RATE
The City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
118
CITY OF UNION CITY
NOTES TO SCHEDULES OF EXPENDITURES OF
FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED JUNE 30, 2023
NOTE 3. CONTINGENCIES
Entitlement to grant 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. Such contingencies are fully disclosed in the Notes to the Financial Statements.
NOTE 4. MONITORING OF SUB-RECIPIENTS
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 $750,000 or more of such assistance to a sub-recipient in a fiscal year, the City is
responsible for determining that the expenditures of federal and state monies passed through to sub-recipients are utilized in
accordance with applicable laws and regulations. Further, the Uniform Guidance places other related responsibilities upon the
City. 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, 2023 were reviewed and findings and questioned
costs, if any, were disclosed.
NOTE 5. RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
The regulations and guidelines governing the preparation of federal and State financial reports vary by federal and state
agency and among programs administered by the same agency. Accordingly, the amounts reported in the federal and state
financial reports do not necessarily agree with the amounts reported in the accompanying schedules of expenditures of federal
awards and state financial assistance, which are prepared on the basis of accounting explained in Note 1.
NOTE 6. PASS-THROUGH AWARDS AND COMMINGLED ASSISTANCE
The City receives federal and State awards passed-through different levels of government. As a result, the individual sources
of federal and State awards may be commingled and not always separately identifiable. In instances in which the federal
amounts received are commingled by the State or other levels of government with other funds and cannot be separately
identified, they are reported as federal expenditures. In instances in which the State amounts received are commingled by
other levels of government, other than federal, and cannot be separately identified, they are reported as State expenditures.
119
CITY OF UNION CITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2023
Section I - Summary of Auditor's Results
Financial Statements
Type of report the auditor issued on whether the financial statements
audited were prepared in accordance with GAAP:
Internal Control over Financial Reporting:
1) Material weakness(es) identified?
P
Yes
Finding 2023-001
No
2) Significant deficiency(ies) identified?
Yes
P
No
Noncompliance material to basic financial statements noted?
Yes
P
No
Federal Awards
Internal Control over Major Federal Programs:
1) Material weakness(es) identified?
Yes
P
No
2) Significant deficiency(ies) identified?
Yes
P
No
Type of auditor's report issued on compliance for major federal programs:
Unmodified for all major federal programs.
Any audit findings disclosed that are required to be reported
in accordance with 2 CFR 200.516(a)?
Yes
P
No
Identification of major Federal Programs:
16.710
-
Program: COPS Technology & Equipment
21.027
-
ARP-State and Local Fiscal Recovery Funds
Dollar threshold used to distinguish between Type A and Type B Programs:
Auditee qualified as low-risk auditee?
Yes
P
No
State Financial Assistance
Internal control over state programs:
1) Material weakness(es) identified?
Yes
P
No
2) Significant deficiency(ies) identified?
Yes
P
No
Type of auditor's report issued on compliance for major State programs:
Unmodified for all major State programs.
Any audit findings disclosed that are required to be reported
in accordance with NJ OMB 15-08, as amended?
Yes
P
No
Identification of major State programs
100-042-4910-224
-
Recycling Tonnage
2023-022-8030-763-041
-
Urban Enterprise Zone
480-078-6010-***
-
NJ Department of Transportation:
Dollar threshold used to distinguish between Type A and Type B Programs:
Adverse-according to GAAP
Unmodified-as prescribed by NJ DLGS
750,000
$
Name of State Program
Program Code
CFDA Number(s)
750,000
$
Name of Federal Program or Cluster
120
CITY OF UNION CITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (continued)
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Section II - Schedule of Financial Statement Findings
(This section identifies the significant deficiencies, material weaknesses, fraud, noncompliance with provisions of laws,
regulations, contracts and grant agreements, and abuse related to the financial statements for which Government Auditing
Standards requires reporting.)
Finding 2023-001
Material Weakness in Internal Control over Financial Reporting
Criteria:
The New Jersey Local Budget Law, N.J.S.A. 40A:4-57, prohibits the expenditure of any moneys in
the excess of the amount appropriated for such purposes.
Condition:
During the year ended June 30, 2023 the City expended $1,458,476 in excess of amounts
appropriation reserves available.
Context:
The City’s 2023 subsidiary budget and appropriation reserve ledgers identified the over-
expenditures as noted in Exhibit A-15.
Effect:
All over-expenditures must be included as an item of appropriation in future budgets of the City.
This appropriation is subject to the 1977 Appropriation Cap and 2010 Levy Cap.
Cause:
The City’s internal controls are not effective as they relate to the timeliness of the determination of
availability of funds prior to the ordering or payment of goods and services or incurring of salaries
and wages. The over-expenditure of funds is a repeat finding.
Questioned Costs:
None.
Recommendation:
The City should implement or strengthen procedures to determine the availability of funds prior to
the ordering or payment of goods and services.
Views of Responsible Officials of the City (unaudited):
Due to unforeseen circumstances and the global pandemic, the City incurred some expenses that were not included in the
original adopted budget.
121
CITY OF UNION CITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (continued)
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Section III - Schedule of Federal Awards and State Financial Assistance Findings and Questioned Costs
(This section identifies audit findings required to be reported by the 2 CFR 200.516(a) and New Jersey OMB Circular 15-
08.)
None identified.
122
CITY OF UNION CITY
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS AND
QUESTIONED COSTS AS PREPARED BY MANAGEMENT
FOR THE YEAR ENDED JUNE 30, 2023
Status of Prior Year Findings
(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 4 of Government Auditing Standards, 2 CFR 200.516(a)
and New Jersey OMB Circular 15-08.)
Finding: 2022-001
Material Weakness in Internal Control over Financial Reporting
Condition:
During the year ended June 30, 2022 the City expended $3,808,393 in excess of the amounts
appropriated in its fiscal year 2022 budget and $696,551 in excess of amounts appropriation
reserves available, for total overexpenditures of $4,504,944.
Current Year Status:
The City has incurred over-expenditures of $1,458,476 during fiscal year ended June 30, 2023.
See Finding 2023-001.
123
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CITY OF UNION CITY
REPORT OF AUDIT
OTHER REPORTING:
LETTER OF COMMENTS AND RECOMMENDATIONS
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CITY OF UNION CITY
GENERAL COMMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
CONTRACTS AND AGREEMENTS REQUIRED TO BE ADVERTISED PER N.J.S.A. 40A:11-3 AND 40A: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 $40,000. 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.” The City has not elected to increase
its bid threshold to over $17,500.
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:
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. We did note, however, instances where accumulated purchases from
individual vendors totaled in excess of $17,500 without public bidding or purchasing through a state contract.
- 2911 Bergenline Ave Renovations (PD Annex)
-
Bergenline Ave Streetscape Phase II
- Sidewalk Repair Program
-
New Entry Ramp
- Fire/Water Heater Cleaning Maintenance
-
Tree Trimming
- 12th & Morris to 14th Street Improvements
-
NJDOT Road Repairs
- Snow Removal
-
Housing Authority Parking Lot Improvements
- Ambulance Billing Services
-
Elevator Maintenance Services
- Road Resurfacing Project
-
Landscape Maintenance Program
- New Vinyl Flooring
-
New Chain Link Fence
- Pools and Spray Grounds Maintenance
-
Flower's Service
- Electrical Repairs
-
Plumbing Repairs
- Improvements to 13th, 37th and 38th Streets
124
CITY OF UNION CITY
GENERAL COMMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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:11-5.1(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 .
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:11-6.1(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.
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.
EXPENDITURE LESS THAN 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.
125
CITY OF UNION CITY
GENERAL COMMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
COLLECTION OF INTEREST ON DELINQUENT TAXES AND ASSESSMENTS
Statutes provide the method for authorizing interest and the maximum rate to be charged for the nonpayment of taxes, or
assessments 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, 2023 included taxes from the fiscal years ended June 30, 2023 and prior. The following
comparison is made of the number of tax title liens receivable:
CHANGE ORDERS EXCEEDING 20 PERCENT OF ORIGINALLY AWARDED CONTRACT PRICE
Change orders exceeding the originally awarded contract price by more than 20% are allowed only in limited instances. The
authorization process requires a resolution of the governing body and an affidavit of publication for notice in an officially
designated newspaper of the entity. The minutes did not indicate change orders which exceeded 20% of the originally
awarded contract during the fiscal year ended June 30, 2023.
Year Ended
Number
June 30,
of Liens
2023
2
2022
2
2021
2
2020
2
2019
3
2018
3
2017
3
2016
4
2015
7
2014
8
126
CITY OF UNION CITY
COMMENTS AND RECOMMENDATIONS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
FINDING 2023-001:
This finding is detailed in Section II – Schedule of Financial Statement Findings, found on page 120.
FINDING 2023-002:
The City did not provide resolutions of contract awards for several vendors requested.
Recommendation:
The City must make all resolutions awarding contracts to vendors available for audit review.
FINDING 2023-003:
Audit testing of the Municipal Court included a review of 25 voided tickets for proper approvals. Of the 25 selected,
2 were not available for audit review.
Recommendation:
The Municipal Court should retain support for voided tickets.
**********************
Status of Prior Years’ Audit Recommendations
A review was performed on all prior year’s recommendations. With the exception of those findings repeated from the prior
year, corrective action was taken on all prior year recommendations.
Corrective Action
In accordance with regulations promulgated by the Single Audit Act and the Division of Local Government Services, all
municipalities are required to prepare and submit to the Division of Local Government Services, a Corrective Action Plan
with regard to audit deficiencies. This plan must be approved by formal resolution of the governing body and submitted
within 60 days from the date the audit is received.
Schedule of Findings and Questioned Costs
We noted certain other matters that we reported in the accompanying schedule of findings and questioned costs section of
this report. Such matters are required to be reported under Government Auditing Standards, Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
and N.J. OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid.
**********************
127
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