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Annual Audit Report
BID #: N/A
ISSUED: 6/16/2025
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Executive Summary
This document is an audit report for the City of Union City, New Jersey, covering the year ended December 31, 2024, and the six-month transition year ended December 31, 2023. The audit includes financial statements for various funds (Current, Federal and State Grants, General Capital, and Trust) and the Statement of General Fixed Assets, prepared on a regulatory basis as prescribed by the New Jersey Division of Local Government Services, rather than Generally Accepted Accounting Principles (GAAP). The report provides opinions on the fairness of the presentation of these financial statements on the regulatory basis. It also addresses internal control over financial reporting, compliance with laws and regulations, and compliance with requirements for major federal and state programs. The audit was conducted by Donohue Gironda Doria Tomkins LLC, Certified Public Accountants, with the report issued on June 16, 2025.
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--- Document: Annual Audit Report Document ---
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CITY OF UNION CITY
COUNTY OF HUDSON, STATE OF NEW JERSEY
REPORT OF AUDIT
FOR THE YEAR ENDED
DECEMBER 31, 2024
AND THE SIX MONTH TRANSITION YEAR ENDED
DECEMBER 31, 2023
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CITY OF UNION CITY
AUDIT OF FINANCIAL STATEMENTS
DECEMBER 31, 2024
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 Sheets ………………………………….......................................
4
A
Comparative Statements 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 Sheets ………………………………….......................................
16
B
General Capital Fund
Comparative Balance Sheets …………………..........………………….......…..............
17
C
Comparative Statements 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 …................................................................................................
27
Note 5. Fund Balances Appropriated …..........................................................................
31
Note 6. Retirement Systems …........................................................................................
31
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 …..................................................................................................
45
Note 12. Deferred Charges to be Rasied in Succeeding Budgets …................................
45
Note 13. Interfund Transactions …..................................................................................
46
Note 14. Related Party Transactions …...........................................................................
46
Note 15. Tax Abatements …............................................................................................
46
Note 16. Economic Dependency ….................................................................................
47
Note 17. Prepaid Debt Service - Qualified Bonds ….......................................................
47
Note 18. Contingent Liabilities …...................................................................................
47
Note 19. Subsequent Events …........................................................................................
49
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Index - 1
CITY OF UNION CITY
AUDIT OF FINANCIAL STATEMENTS
DECEMBER 31, 2024
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 and Apportionment of Tax Rate …...............................................
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 - Current Fund ….................................................................
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 to State - Overpayment Received …………………………………………………
55
A-6
Due from State of NJ Prepaid Qualified Bonds …..........................................................
55
A-6a
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
Reserve for Retro Pay …………………………………………………………………… 65
A-18a
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 ………………………………………………....................................
70
A-25
Reserve for Appropriated Grants ………………………………………………………
73
A-26
Interfunds ……………………………………………………………………................
80
A-27
Reserve for Unappropriated Grants ….............................................................................
81
A-28
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Index - 2
CITY OF UNION CITY
AUDIT OF FINANCIAL STATEMENTS
DECEMBER 31, 2024
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 Payable ………………………………… 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
Encumbrances Payable…………………………………………………………….........
98
C-8
General Serial Bonds …………………………………………………….......................
99
C-9
Capital Lease Payable - HCIA …..................................................................................... 100
C-10
Green Acres Loans Payable ……………………………………………………….........
101
C-11
Bond Anticipation Notes Payable ………………………………………………….......
103
C-12
Capital Lease Payable ….................................................................................................. 104
C-13
Capital Improvement Fund …………………………………………………………......
105
C-14
Reserve for Retirement of Debt Service ………………………………………………… 105
C-15
Bonds and Notes Authorized but not Issued …………………………………………… 106
C-16
General Fixed Assets Schedule of:
Changes in Fixed Assets by Class ……………………………………….......................
107
D-1
Investment in General Fixed Assets …………………………………………………..… 107
D-2
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Index - 3
CITY OF UNION CITY
AUDIT OF FINANCIAL STATEMENTS
DECEMBER 31, 2024
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 …………………..........
108
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 ………………………… 110
Schedule of Expenditures of Federal Awards ………………………………………………
113
1
Schedule of Expenditures of State Financial Assistance ……………………………………
115
2
Notes to Schedules of Expenditures of Federal Awards
and State Financial Assistance …………………………………………………............
117
Schedule of Findings and Questioned Costs:
Section 1 - Summary of Auditors' Results ………………………………………..........
119
Section 2 - Summary of Financial Statement Findings …………………………….......
120
Section 3 - Schedule of Federal Awards and -
State Financial Assistance - Findings and Questioned Costs ……………………… 121
Summary Schedule of Prior Year Audit Findings and
Questioned Costs as Prepared by Management ……………………………………
122
Letter of Comments and Recommendations as Required by NJ DLGS
General Comments ………………………………………………………………….............
123
Comments and Recommendations ……………………………………………….................. 126
………………………………………………
………………………………………………
Index - 4
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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 December 31, 2024 and 2023, 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 December 31, 2024 and 2023,
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 December 31, 2024 and 2023, 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
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.
1
Emphasis of a Matter Regarding Fiscal Year Reversion
As described in Note 1, the fiscal year ended June 30, 2023 was the City’s final fiscal year ending on June 30. The City has
reverted to a fiscal year based on a calendar year, the first of which encompasses the current period under audit: January 1,
2024 through December 31, 2024. In order to implement this reversion, the City, in accordance with State Law, operated on a
six month Transition Year for the period July 1, 2023 through December 31, 2023. Financial statement dates noted herein of
December 31, 2023 represent six months, but are referred to as a “year” as State Law refers to this six month period as a
Transition Year. Our opinion on the basic financial statements is not affected by this change in fiscal year.
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
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.
2
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 June 16, 2025, 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
June 16, 2025
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
AS OF DECMEBER 31, 2024 AND 2023
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS
2024
2023
Ref.
Assets
Current Fund:
Cash and Cash Equivalents
A-4
11,344,528
$
7,301,602
$
Change Fund
A-5
398
398
11,344,926
7,302,000
Intergovernmental Receivable:
Due from State of NJ:
Senior & Veteran Deductions
A-12
12,250
14,092
Prepaid Debt Service - Qualified Bonds
A-6a
1,270,044
1,198,414
1,282,294
1,212,506
Receivables and Other Assets with Full Reserves:
Taxes Receivable
A-7
65,359
40,399
Tax Title Liens Receivable
A-13
36,416
35,400
Relocation Assistance Receivable
A-9
131,918
228,990
Revenue Accounts Receivable
A-10
1,335,264
2,785,558
Interfunds Receivable:
Due from Federal and State Grants Fund
A-11
-
18,718
Other Receivables
A-14
2,303,387
2,299,018
3,872,344
5,408,083
Deferred Charges:
Emergency Authorizations (N.J.S. 40A:4-47)
-
1,210,000
Special Emergency Authorizations (N.J.S. 40A:4-53)
4,367,886
4,838,587
Budget Deficit
-
886,337
Overexpenditures
3,208,607
8,277,756
COVID-19 Revenue loss
690,270
1,035,500
Health Insurance & Solid Waste Removal (COVID)
2,187,600
3,283,600
A-23
10,454,363
19,531,780
Total Current Fund Assets
26,953,927
33,454,369
Federal and State Grant Fund:
Cash and Cash Equivalents
A-4
2,287,661
1,821,867
Federal and State Grants Receivable
A-25
24,777,364
18,538,242
Total Federal and State Grant Fund Assets
27,065,025
20,360,109
Total Assets
54,018,952
$
53,814,478
$
See Accompanying Notes to the Financial Statements.
4
EXHIBIT A
Sheet 2 of 2
CITY OF UNION CITY
CURRENT FUND
AS OF DECMEBER 31, 2024 AND 2023
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS
2024
2023
Ref.
Liabilities, Reserves and Fund Balance
Current Fund:
Liabilities and Reserves:
Appropriation Reserves
A-3, A-15
372,780
$
1,413,564
$
Tax Overpayments
A-8
11,350
8,946
Interfunds Payable:
Due to General Capital Fund
A-11
-
4,552,090
Intergovernmental Payables
A-16
60,193
14,923
Reserve for Liquor License Retirement
A-17
72,340
58,715
Prepaid Taxes
A-18
510,958
558,171
County Added and Omitted Taxes Payable
A-20
23,573
47,756
Accounts Payable
A-21
434,118
507,265
Reserve for Retro Pay
A-18a
374,000
-
Reserve for Encumbrances
A-22
6,039,530
5,043,797
Special Emergency Notes Payable
A-24
3,156,000
6,493,000
Total Liabilities and Reserves
11,054,842
18,698,227
Reserve for Receivables
3,872,344
5,408,083
Fund Balance
A-1
12,026,741
9,348,059
Total Current Fund Liabilities, Reserves and Fund Balance
26,953,927
33,454,369
Federal and State Grant Fund:
Liabilities and Reserves:
Reserve for Encumbrances
A-22
1,884,826
676,727
Reserve for State and Federal Grants:
Appropriated
A-26
25,137,490
19,629,330
Unappropriated
A-28
42,709
35,334
Interfunds Payable:
Due to Current Fund
A-27
-
18,718
Total Federal and State Grant Fund Liabilities and Reserves
27,065,025
20,360,109
Total Liabilities, Reserves and Fund Balance
54,018,952
$
53,814,478
$
See Accompanying Notes to the Financial Statements.
5
EXHIBIT A-1
Sheet 1 of 2
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
AND THE SIX MONTH TRANSITION YEAR ENDED DECEMBER 31, 2024
COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE
- REGULATORY BASIS
2024
2023
Ref.
Revenue and Other Income Realized
Miscellaneous Revenue Anticipated
A-2
110,449,780
$
45,999,998
$
Receipts from Delinquent Taxes
A-2
20,081
12,840
Receipts from Current Taxes
A-2
122,418,101
61,089,271
Non-Budget Revenues
A-2
544,259
1,004,964
Other Credits to Income:
Other Receivables Returned
A-14
2,299,018
483,366
Unexpended Balance of Appropriation Reserves
A-15
601,297
109,924
Accounts Payable Cancelled
A-21
43,365
-
Dog License Fund - Statutory Excess
A-11
10,412
-
Cancelled Grants
A-11
-
837
Prior Year Interfunds Returned
A-11
18,718
11,864
236,405,031
108,713,064
Expenditures
Budget Appropriations:
Appropriations within "CAPS"
Salaries and Wages
46,034,546
24,411,256
Other Expenses
57,741,104
34,473,626
Deferred Charges and Statutory Expenditures
15,315,875
2,101,009
Appropriations excluded from "CAPS"
Operations
Salaries and Wages
5,673,921
2,587,998
Other Expenses
49,751,797
19,721,231
Capital Improvements
1,000,000
7,000,000
Debt Service
9,658,185
7,140,547
Deferred Charges
11,025,490
1,210,000
Total Budget Appropriations
A-3
196,200,918
98,645,667
Local School District Taxes
A-2, A-19
15,418,637
6,167,455
County Taxes
A-2, A-20
22,804,653
9,875,001
Due County for Added and Omitted Taxes
A-2, A-20
23,573
47,756
Other Receivable Advances
A-14
2,303,387
2,299,018
Grant Receivable Writeoffs
A-11
434,742
-
Interfund Advances Originating in Current Year
-
18,718
State Audit Adjustment for Senior and Veterans Deductions
A-12
250
-
Refund of Prior Year Revenue
A-4
201,841
144,477
237,388,001
117,198,092
Deficit in Revenue
982,970
8,485,028
See Accompanying Notes to the Financial Statements.
6
EXHIBIT A-1
Sheet 2 of 2
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
AND THE SIX MONTH TRANSITION YEAR ENDED DECEMBER 31, 2024
COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE
- REGULATORY BASIS
2024
2023
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
1,084,279
$
7,598,691
$
Overexpenditures
A-23
2,577,373
-
Statutory Excess to Fund Balance
2,678,682
Deficit in Operations to be Raised
in Budget of Succeeding Year
886,337
$
Fund Balance, Beginning of Year
A
9,348,059
9,348,059
Fund Balance, End of Year
A
12,026,741
$
9,348,059
$
See Accompanying Notes to the Financial Statements.
7
EXHIBIT A-2
Sheet 1 of 3
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
STATEMENT OF REVENUES - REGULATORY BASIS
Budget as
N.J.S.A.
Excess or
Adopted
40A:4-87
Realized
(Deficit)
Miscellaneous Revenues:
Local Revenues:
Licenses:
Alcoholic Beverage
27,680
$
-
$
228,411
$
200,731
$
Other
31,242
-
121,720
90,478
Fees and Permits
184,046
-
202,511
18,465
Fines and Costs - Municipal Court
1,731,800
-
1,850,799
118,999
Interest and Costs on Taxes
196,126
-
249,213
53,087
Interest on Investments and Deposits
1,543,220
-
965,648
(577,572)
Wedding Fees
38,606
-
43,709
5,103
City Share of Police Details
115,444
-
105,950
(9,494)
Public Telephone Commissions
103,582
-
91,555
(12,027)
Cable Franchise Fees
194,921
-
179,421
(15,500)
Payment in Lieu of Taxes:
Union Plaza Apartments
337,585
-
379,274
41,689
Palisade Urban Renewal Assoc.
43,321
-
60,710
17,389
Holy Rosary
29,845
-
30,976
1,131
Horizon Heights
15,460
-
15,211
(249)
Serv Properties
939
-
13,440
12,501
Suede Promotions
20,000
-
15,000
(5,000)
Monastery Redevelopment Group LLC
39,451
-
39,391
(60)
4,653,268
-
4,592,939
(60,329)
State Aid Without Offsetting Appropriations:
Consolidated Municipal Property Tax Relief Aid
-
-
-
-
Energy Receipts Taxes
22,741,715
-
22,741,715
-
Transitional Aid
41,906,886
-
41,906,886
-
Transitional Aid - Supplemental
6,819,280
-
6,819,280
-
71,467,881
-
71,467,881
-
Dedicated Uniform Construction Code Fees Offset with Appropriations:
Uniform Construction Code Fees
1,441,042
-
1,491,559
50,517
Special Items of Revenue - Shared Service Agreements
Union City Board of Education:
Solid Waste Removal
522,904
-
392,180
(130,724)
47th Street Pool
136,000
-
181,334
45,334
Lease Recreational Center
450,000
-
450,000
-
Off Duty Police Officers
100,000
414,938
796,120
281,182
Police Services - SLEO III's
1,460,832
-
718,548
(742,284)
Police Services - School Resource
425,724
531,308
1,004,561
47,529
School Crossing Guards
4,039,484
-
4,590,053
550,569
7,134,944
946,246
8,132,796
51,606
See Accompanying Notes to the Financial Statements.
8
EXHIBIT A-2
Sheet 2 of 3
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
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
National Opioid Settlement
970,110
$
49,302
$
1,019,412
$
-
$
Spotted Lanternfly Grant
20,000
-
20,000
-
Municipal Alliance on Alcoholism and Drug Abuse
21,005
-
21,005
-
Drug-Free Communities
-
125,000
125,000
-
Recycling Tonnage
29,987
-
29,987
-
Distracted Driver Crackdown
12,250
-
12,250
-
Body Armor Replacement Fund
10,930
13,119
24,049
-
Clean Communities
118,532
-
118,532
-
DOT: LAIF 2024 Road Improvement 37th and 38th St.
1,700,000
-
1,700,000
-
DCA Social Services Grant
5,000,000
-
5,000,000
-
HC History Patnership Program Grant Funding
9,900
-
9,900
-
HC Local Arts Program
5,874
-
5,874
-
Alcohol Education
3,065
-
3,065
-
NJACCHO
168,049
-
168,049
-
DOT Hudson Avenue Improvements
4,000,000
-
4,000,000
-
DOT 39th Street Bergenline Ave to Kennedy Blvd
4,500,000
-
4,500,000
-
Plug in Electric Vehicle Charging Stations
24,000
-
24,000
-
Click It or Ticket
10,500
-
10,500
-
Energy Efficiency & Conservation Block Grant
123,130
-
123,130
-
Urban Enterprize Zone Assistance Fund -
-
1,811,223
1,811,223
-
Bergenline Streetscape (37th & 43rd)
1,774,933
-
1,774,933
-
Strengthening Local Public Health Capacity Program 202
74,664
-
74,664
-
Bulletproof Vest Program
-
32,607
32,607
-
Green Acres 4100 Palisade Ave Acq.
-
886,000
886,000
-
Sustained Enforcement Grant
-
52,000
52,000
-
NIBRS Compliance Grant
-
75,000
75,000
-
Justice Assistance Grant - 2023
-
26,567
26,567
-
Justice Assistance Grant - 2024
-
32,408
32,408
-
Hudson County Open Space -
4100 Palisade Ave Soccer Field
-
216,000
216,000
-
Liberty Place Playground
-
500,000
500,000
-
18,576,929
3,819,226
22,396,155
-
Special Items of Revenue - Other
Rental Income Teamsters Building (3 Months)
33,775
-
120,629
86,854
Emergency Medical Services
1,082,382
-
1,752,344
669,962
Reserve for Debt Service
29,007
-
29,007
-
Five Year Abatement Program
699,039
-
466,470
(232,569)
1,844,203
-
2,368,450
524,247
Total Miscellaneous Revenues
105,118,267
4,765,472
110,449,780
566,041
Receipts From Delinquent Taxes
16,481
-
20,081
3,600
Subtotal General Revenues
105,134,748
4,765,472
110,469,861
569,641
Amount to Be Raised by Taxes for Support of Municipal Budget:
Local Tax for Municipal Purposes
83,508,621
$
-
$
83,564,564
$
55,943
$
Minimum Library Tax
1,798,924
-
1,798,924
-
85,307,545
-
85,363,488
55,943
Total Budget Revenues
190,442,293
4,765,472
195,833,349
625,584
Non-Budget Revenues
-
-
544,259
544,259
Total General Revenues
190,442,293
$
4,765,472
$
196,377,608
$
1,169,843
$
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 YEAR ENDED DECEMBER 31, 2024
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
Cash Receipts
A-4
116,834,807
$
State ARP Disaster Recovery Mitigation Funds
A-4
3,000,000
State REAP Aid
A-6a
2,000,000
Applied from Tax Overpayments
A-8
2,123
Revenue from Collections
A-7
121,836,930
Add:
Current Year Taxes Collected in Prior Year
A-7, A-18
558,171
Add:
State Share of Deductions
A-7, A-12
23,000
A-1
122,418,101
Add:
Reserve for Uncollected Taxes
A-3
1,192,250
123,610,351
Less:
Allocated to School Taxes
A-1, A-19
15,418,637
Allocated to County Taxes
A-1, A-20
22,828,226
Amount for Support of Municipal Budget
85,363,488
$
Receipts from Delinquent Taxes
Delinquent Tax Collections
A-7
21,913
State Share of Prior Year Deductions
A-7, A-12
(1,832)
A-1, A-7
20,081
Miscellaneous Revenues Anticipated
Cash Receipts
A-10
16,556,737
Revenues from Other Funds, Reserves and Deposits
A-10
29,007
State Aid
A-6a
71,467,881
Grant Revenue - As Adopted
A-11
18,576,929
Grant Revenue - Added by NJSA 40A:4-87
A-11
3,819,226
Total Miscellaneous Revenues
A-1
110,449,780
Surplus Anticipated
A-1
-
Total Budget Revenues Anticipated
195,833,349
$
Analysis of Non-Budget Revenue
Received in Cash
Copies of Reports
49,219
$
31st Street Parking Lot
6,300
Bus Shelter Rent
3,000
Sale of Assets
10,000
Police Detail Admin Fee
214,795
Rent - Foreclosed Property Fees
21,000
Motor Vehicle Inspection Fines
175
Refunds
3,275
Miscellaneous
13,714
Prior Year Municipal Lien Receipts
11,567
Unclaimed Funds
67,653
HCIA Trust Account Balance in Debt Service Fund to City
103,275
Void Prior Year Accounts Payable Checks
10,826
Tax Lien Judgment
29,000
2% Admin payment-Sr Citizen/Vets
460
A-1, A-4
544,259
$
See Accompanying Notes to the Financial Statements.
10
EXHIBIT A-3
Sheet 1 of 5
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
STATEMENT OF APPROPRIATIONS - REGULATORY BASIS
Appropriations
Expended
Adopted
Budget After
Paid or
Over
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
Expended
(A) Operations - Within "CAPS"
Department of Public Affairs:
Director's Office
Salaries and Wages
372,885
$
375,051
$
375,051
$
-
$
-
$
-
$
-
$
Other Expenses
4,500
1,176
1,123
53
-
-
-
Municipal Court
Salaries and Wages
1,282,200
1,229,642
1,229,642
-
-
-
-
Other Expenses
185,000
244,572
201,159
43,413
-
-
-
Public Defender
Other Expenses
80,000
81,600
69,350
12,250
-
-
-
Senior Citizens
Salaries and Wages
672,000
700,072
700,072
-
-
-
-
Other Expenses
32,000
45,300
45,300
-
-
-
-
Hispanic/Cultural Affairs
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
22,503
22,503
22,500
-
3
-
-
Other Expenses
20,000
63,709
47,555
15,385
769
-
-
Continuous Planning Program
70,000
79,163
74,634
4,529
-
-
-
Celebration of Public Events
Other Expenses
167,000
121,807
121,807
-
-
-
-
Department of Revenue and Finance:
Director's Office
Salaries and Wages
15,520
15,520
15,500
-
20
-
-
Other Expenses
2,500
985
985
-
-
-
-
City Clerk's Office
Salaries and Wages
406,500
442,098
442,098
-
-
-
-
Other Expenses
100,000
118,588
94,760
20,192
3,636
-
-
Treasurer's Office
Salaries and Wages
415,000
422,025
418,639
-
3,386
-
-
Other Expenses
616,336
668,843
607,341
61,502
-
-
-
Assessment of Taxes
Salaries and Wages
412,000
420,120
420,120
-
-
-
-
Other Expenses
20,000
17,143
17,143
-
-
-
-
Collection of Taxes
Salaries and Wages
250,000
258,159
258,159
-
-
-
-
Other Expenses
25,000
29,098
23,638
5,460
-
-
-
Central Purchasing
Salaries and Wages
207,000
227,947
227,947
-
-
-
-
Other Expenses
10,000
6,916
6,271
645
-
-
-
Rent Control Board
Salaries and Wages
319,000
322,381
322,381
-
-
-
-
Other Expenses
15,000
23,312
16,966
6,346
-
-
-
Insurance
General Liability
2,680,962
2,755,187
2,705,187
50,000
-
-
-
Workers Compensation
2,231,675
2,377,378
2,352,378
25,000
-
-
-
Employee Group Health
26,179,086
26,179,086
26,088,536
387,007
-
-
296,457
Tax Searches
Salaries and Wages
5,000
5,000
5,000
-
-
-
-
Elections
Salaries and Wages
10,000
2,123
2,123
-
-
-
-
Other Expenses
245,000
245,599
236,034
9,565
-
-
-
Membership NJ League of Municipalities
Other Expenses
4,600
4,600
4,554
-
46
-
-
Annual Audit
Other Expenses
95,000
95,000
-
95,000
-
-
-
Printing - All Departments
Other Expenses
592,789
575,508
510,868
64,640
-
-
-
Photocopying
Other Expenses
55,000
51,708
51,011
697
-
-
-
Tax Sale Costs
Other Expenses
10,000
10,000
-
-
10,000
-
-
Department of Revenue and Finance:
Postage-All Departments
Other Expenses
450,000
482,178
480,058
2,120
-
-
-
Data Processing
Other Expenses
20,000
18,193
18,193
-
-
-
-
See Accompanying Notes to the Financial Statements.
11
EXHIBIT A-3
Sheet 2 of 5
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
STATEMENT OF APPROPRIATIONS - REGULATORY BASIS
Appropriations
Expended
Adopted
Budget After
Paid or
Over
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
Expended
(A) Operations - Within "CAPS"
Department of Parks and Public Property:
Director's Office
Salaries and Wages
158,000
$
183,104
$
183,104
$
-
$
-
$
-
$
-
$
Other Expenses
5,000
5,065
5,065
-
-
-
-
Department of Public Safety:
Director's Office
Salaries and Wages
704,000
726,855
709,776
-
17,079
-
-
Other Expenses
200,000
222,540
210,869
11,671
-
-
-
Weddings
Salaries and Wages
30,000
41,775
41,775
-
-
-
-
Legal Department
Salaries and Wages
290,700
294,542
294,542
-
-
-
-
Other Expenses
1,825,000
1,825,000
2,059,318
275,658
-
-
509,976
Police Department
Salaries and Wages
25,011,041
23,429,015
23,428,649
-
366
-
-
Overtime
1,200,000
1,520,599
1,518,586
-
2,013
-
-
Other Expenses
1,100,000
1,119,623
961,217
158,406
-
-
-
Traffic Signs and Safety
Other Expenses
100,000
102,166
102,166
-
-
-
-
Emergency Management Services
Salaries and Wages
33,505
33,505
33,500
-
5
-
-
Other Expenses
5,000
7,533
7,343
190
-
-
-
Emergency Medical Services
Salaries and Wages
3,155,000
3,005,163
3,005,163
-
-
-
-
Other Expenses
135,000
135,000
90,372
42,742
1,886
-
-
Life Hazard Use Fee-Uniform Fire Safety
Other Expenses
30,000
13,317
13,317
-
-
-
-
Fleet Maintenance
Other Expenses
800,000
805,774
790,874
14,900
-
-
-
Contribution to UCRA
60,000
60,000
60,000
-
-
-
-
Board of Health
Salaries and Wages
49
49
-
-
49
-
-
Welfare
Relocation Assistance
-
(9,200)
(10,900)
-
1,700
-
-
Department of Public Works:
Director's Office
Salaries and Wages
280,000
300,569
300,569
-
-
-
-
Other Expenses
55,500
262,394
260,604
1,790
-
-
-
Street Cleaning
Salaries and Wages
6,324,000
6,358,178
6,357,317
-
861
-
-
Other Expenses
233,600
290,650
288,894
1,756
-
-
-
Streets Repairs and Maintenance
Other Expenses
172,174
190,037
148,676
41,361
-
-
-
Snow Removal
Salaries and Wages
100,000
29,272
29,272
-
-
-
-
Other Expenses
200,000
109,705
104,615
5,090
-
-
-
Board of Adjustment
Salaries and Wages
22,000
22,000
22,000
-
-
-
-
Other Expenses
47,000
56,959
51,808
5,151
-
-
-
Solid Waste Disposal
Salaries and Wages
1,390,000
1,358,569
1,357,025
-
1,544
-
-
Other Expenses
4,880,364
4,620,364
4,080,987
258,109
281,268
-
-
UEZ Operations
Other Expenses
-
10,577
10,577
-
-
-
-
Engineering Services
Other Expenses
1,800,000
1,800,000
2,451,391
22,473
-
-
673,864
Public Assistance
Other Expenses
-
-
225,270
1,500
-
-
226,770
(A) Operations - Within "CAPS"
Department of Parks and Public Property:
Parks and Playgrounds
Other Expenses
650,000
842,598
725,898
116,700
-
-
-
Public Buildings and Grounds
Salaries and Wages
1,400,000
1,433,577
1,433,577
-
-
-
-
Other Expenses
920,000
1,277,894
1,203,511
73,513
870
-
-
Recreation
Salaries and Wages
750,000
1,026,123
1,026,123
-
-
-
-
Other Expenses
550,000
416,050
365,559
50,491
-
-
-
See Accompanying Notes to the Financial Statements.
12
EXHIBIT A-3
Sheet 3 of 5
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
STATEMENT OF APPROPRIATIONS - REGULATORY BASIS
Appropriations
Expended
Adopted
Budget After
Paid or
Over
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
Expended
(A) Operations - Within "CAPS"
Uniform Construction Code:
State Uniform Construction Code Officials:
Salaries and Wages
1,440,000
$
1,588,457
$
1,588,457
$
-
$
-
$
-
$
-
$
Other Expenses
350,000
349,159
278,387
70,772
-
-
-
Department of Parks and Public Property:
Sub-Code Officials:
Electrical Inspector
Salaries and Wages
40,000
40,750
40,750
-
-
-
-
Fire Inspector
Salaries and Wages
280,000
199,803
199,803
-
-
-
-
Other Expenses
30,000
30,000
29,444
556
-
-
-
Unclassified:
Retirement Benefits
300,000
1,084,279
1,084,279
-
-
-
-
Gasoline
700,000
572,638
517,638
55,000
-
-
-
Telephone
325,000
348,117
339,934
8,183
-
-
-
Electricity
2,500,000
3,692,227
4,562,533
-
-
-
870,306
Water
595,000
442,630
441,046
1,584
-
-
-
Sewer
125,000
83,986
83,986
-
-
-
-
Total Operations within "CAPS"
99,702,989
101,198,277
101,395,256
2,043,569
336,825
-
2,577,373
Detail:
Salaries and Wages
46,997,903
46,034,546
46,009,220
-
25,326
-
-
Other Expenses
52,705,086
55,163,731
55,386,036
2,043,569
311,499
-
2,577,373
Deferred Charges and Statutory Expenditures -
Deferred Charges - Municipal Within "CAPS"
Overexpenditures
1,458,476
1,458,476
1,458,476
-
-
-
-
Prior Year Bill-Reporting System NJ NIBR
6,000
6,000
-
-
-
6,000
-
Prior Year Bills Florio & Kenny
76,809
76,809
76,809
-
-
-
-
Prior Year Bills Cleary Giacobbee
10,027
10,027
10,027
-
-
-
-
Prior Year Bill Donohue, Gironda & Doria
15,000
15,000
15,000
-
-
-
-
Statutory Expenditures - Contributions to:
PERS
2,155,434
2,150,855
2,150,855
-
-
-
-
Social Security System
2,600,000
2,609,212
2,589,163
-
20,049
-
-
Consolidated Police and
Firemen Pension Fund
12,438
12,438
12,438
-
-
-
-
PFRS
7,592,363
7,487,370
7,480,072
-
7,298
-
-
Unemployment Insurance
600,000
250,853
(116)
250,969
-
-
-
DCRP
320,000
358,498
358,498
-
-
-
-
14,846,547
14,435,538
14,151,222
250,969
27,347
6,000
-
Cash Deficit of Preceding Year
886,337
886,337
886,337
-
-
-
-
Total General Appropriations for
Municipal Purposes within "CAPS"
115,435,873
116,520,152
116,432,815
2,294,538
364,172
6,000
2,577,373
Other Operations Excluded from "CAPS"
Free Public Library
1,798,924
1,798,924
1,798,924
-
-
-
-
North Hudson Fire & Rescue
22,179,624
22,179,624
18,529,209
3,641,807
8,608
-
-
Health Insurance
820,914
820,914
820,914
-
-
-
-
Garbage & Trash Removal & Disposal
1,020,486
1,020,486
1,020,486
-
-
-
-
Workers Compensation
470,950
470,950
470,950
-
-
-
-
Liability Insurance
118,638
118,638
118,638
-
-
-
-
26,409,536
26,409,536
22,759,121
3,641,807
8,608
-
-
Shared Service Agreements:
Union City Board of Education
Solid Waste Removal
522,904
522,904
522,904
-
-
-
-
47th Street Pool
136,000
136,000
136,000
-
-
-
-
Recreation Center Lease
450,000
450,000
450,000
-
-
-
-
Snow Removal
-
-
-
-
-
-
-
Off Duty Police Officers
100,000
514,938
514,938
-
-
-
-
SLEO III Police Officers
1,460,832
1,460,832
686,581
-
-
774,251
-
Police Services - SRO
425,724
957,032
957,032
-
-
-
-
School Crossing Guards
4,039,484
4,039,484
3,244,136
103,185
-
692,163
-
Total Shared Service Agreements
7,134,944
8,081,190
6,511,591
103,185
-
1,466,414
-
See Accompanying Notes to the Financial Statements.
13
EXHIBIT A-3
Sheet 4 of 5
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
STATEMENT OF APPROPRIATIONS - REGULATORY BASIS
Appropriations
Expended
Adopted
Budget After
Paid or
Over
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
Expended
Public and Private Programs Offset by Revenue:
Clean Communities
118,532
$
118,532
$
118,532
$
-
$
-
$
-
$
-
$
Click it or Ticket
10,500
10,500
10,500
-
-
-
-
Spotted Lanternfly Grant
20,000
20,000
20,000
-
-
-
-
Recycling Tonnage Grant
29,987
29,987
29,987
-
-
-
-
Body Armor Replacement Fund
10,930
10,930
10,930
-
-
-
-
Distracted Driving Crackdown -
U Text U Drive U Pay
12,250
12,250
12,250
-
-
-
-
Municipal Alliance on Alcoholism & Drug Abuse
Grant Award
21,005
21,005
21,005
-
-
-
-
Local Match
5,251
5,251
5,251
-
-
-
-
Drug-Free Communities
Grant Award
-
125,000
125,000
-
-
-
-
DOT LAIF - 2024
Road Improvement 37th & 38th
1,700,000
1,700,000
1,700,000
-
-
-
-
Alcohol Education
3,065
3,065
3,065
-
-
-
-
DCA Social Services Grant
5,000,000
5,000,000
5,000,000
-
-
-
-
Urban Enterprise Zone Assistance Fund
1,774,933
3,586,156
3,586,156
-
-
-
-
NJ Electric Vehicle Charging Grant
24,000
24,000
24,000
-
-
-
-
Energy Efficiency &
Conservation Block Grant
123,130
123,130
123,130
-
-
-
-
National Opioid Settlement
970,110
970,110
970,110
-
-
-
-
HC History Partnership Program Grant
9,900
9,900
9,900
-
-
-
-
NJACCHO
168,049
168,049
168,049
-
-
-
-
Strengthening Local Public Health
Capacity Program
74,664
74,664
74,664
-
-
-
-
NJDOT - Hudson Avenue
4,000,000
4,000,000
4,000,000
-
-
-
-
HC Local Arts Program
5,874
5,874
5,874
-
-
-
-
Bulletproof Vest Program
-
32,607
32,607
-
-
-
-
Green Acres 4100 Palisade Ave Acq.
-
886,000
886,000
-
-
-
-
Sustained Enforcement Grant
-
52,000
52,000
-
-
-
-
Body Armor Replacement Fund
-
13,119
13,119
-
-
-
-
Hudson County Open Space -
4100 Palisade Ave Soccer Field
-
216,000
216,000
-
-
-
-
Liberty Place Playground
-
500,000
500,000
-
-
-
-
National Opioid Settlement
-
49,302
49,302
-
-
-
-
NIBRS Compliance Grant
-
75,000
75,000
-
-
-
-
Justice Assistance Grant - 2023
-
26,567
26,567
-
-
-
-
Justice Assistance Grant - 2024
-
32,408
32,408
-
-
-
-
NJDOT 36th - 39th St Bergenline to JFK
4,500,000
4,500,000
4,500,000
-
-
-
-
18,582,180
22,401,406
22,401,406
-
-
-
-
Total Operations Excluded from "CAPS"
52,126,660
56,892,132
51,672,118
3,744,992
8,608
1,466,414
-
Other Operations Excluded from "CAPS"
Detail:
Salaries and Wages
6,194,089
7,140,335
5,570,736
103,185
-
1,466,414
-
Other Expenses
45,932,571
49,751,797
46,101,382
3,641,807
8,608
-
-
Capital Improvements Excluded from "CAPS":
Capital Improvement Fund
1,000,000
1,000,000
1,000,000
-
-
-
-
Municipal Debt Service Excluded from "CAPS":
Payment of Bond Principal
4,830,000
4,830,000
4,830,000
-
-
-
-
Bond Anticipation Notes
547,000
547,000
547,000
-
-
-
-
Interest on Bonds
1,635,112
1,635,112
1,635,111
-
-
1
-
Interest on Notes
1,006,317
1,006,317
1,006,317
-
-
-
-
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
298,011
298,011
298,011
-
-
-
-
Hudson County Improvement Authority:
Capital Lease - Principal
826,216
826,216
826,216
-
-
-
-
Capital Lease - Interest
25,235
25,235
21,401
-
-
3,834
-
Capital Lease:
Ambulance
134,359
134,359
134,359
-
-
-
-
Street Sweeper
54,216
54,216
54,216
-
-
-
-
Leasing of Vehicles
214,757
214,757
214,757
-
-
-
-
9,662,020
9,662,020
9,658,185
-
-
3,835
-
See Accompanying Notes to the Financial Statements.
14
EXHIBIT A-3
Sheet 5 of 5
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
STATEMENT OF APPROPRIATIONS - REGULATORY BASIS
Appropriations
Expended
Adopted
Budget After
Paid or
Over
Budget
Modification
Charged
Encumbered
Reserved
Cancelled
Expended
Deferred Charges - Municipal - Excluded from "CAPS":
Special Emergency Authorization -
5 Years (N.J.S.A. 40A:4-55)
869,210
$
869,210
$
869,210
$
-
$
-
$
-
$
-
$
Overexpenditures -
TY2023 Special Aid
6,819,280
6,819,280
6,819,280
-
-
-
-
Special Emergency Notes
3,337,000
3,337,000
3,337,000
-
-
-
-
11,025,490
11,025,490
11,025,490
-
-
-
-
Total General Appropriations for Municipal Purposes
Excluded from "CAPS"
73,814,170
78,579,642
73,355,793
3,744,992
8,608
1,470,249
-
Total General Appropriations
Excluded from "CAPS"
73,814,170
78,579,642
73,355,793
3,744,992
8,608
1,470,249
-
Subtotal General Appropriations
189,250,043
195,099,794
189,788,608
6,039,530
372,780
1,476,249
2,577,373
Reserve for Uncollected Taxes
1,192,250
1,192,250
1,192,250
-
-
-
-
Total General Appropriations
190,442,293
$
196,292,044
$
190,980,858
$
6,039,530
$
372,780
$
1,476,249
$
2,577,373
$
A-22
A
A-23
Adopted Budget
A-2
190,442,293
$
146,217,207
$
A-4
Cash Disbursements, Net of Refunds
Added by NJSA 40A:4-87
A-2
4,765,472
1,192,250
A-2
Reserve for Uncollected Taxes
Special Emergencies
A-23
1,084,279
6,465,111
A-6a
Qualified Bonds Paid by State
196,292,044
23,401,406
A-11
Due to Other Funds
Add: Overexpended to Deferred Charge
A-23
2,577,373
13,370,303
A-23
Deferred Charges
374,000
A-18
Reserved for Retro Pay
Less: Cancelled
1,476,249
(39,419)
A-14
Budget Reimbursements
A-1
197,393,168
$
190,980,858
$
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
AS OF DECMEBER 31, 2024 AND 2023
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS
2024
2023
Ref.
Assets
Animal Control Trust Fund
Cash and Cash Equivalents
B-1
4,714
$
10,194
$
Other Trust Fund
Cash and Cash Equivalents
B-5
11,816,578
11,521,221
Account Receivables
B-6
454,447
395,511
12,271,025
11,916,732
Community Development Agency Fund
Cash and Cash Equivalents
B-10
10,250
6,815
Due from HUD Community Development Block Grant
B-11
2,310,733
2,094,616
2,320,983
2,101,431
Public Defender Trust Fund
Cash and Cash Equivalents
B-15
2,150
1,675
Total Assets
14,598,872
$
14,030,032
$
Liabilities and Reserves
Animal Control Trust Fund
Due to the State of New Jersey
B-2
5
$
-
$
Reserve for Animal Control Trust Fund Expenditures
B-3
4,709
10,155
Prepaid License
B-1
-
39
4,714
10,194
Other Trust Fund
Reserve for Other Trust Fund Activity
B-8
11,002,488
11,134,518
Reserve for Encumbrances Payable
B-9
1,268,537
782,214
12,271,025
11,916,732
Community Development Agency Fund
Reserve for Community Development Block Grant
B-13
1,106,777
1,490,127
Reserve for Encumbrances
B-13
1,214,206
611,304
2,320,983
2,101,431
Public Defender Trust Fund
Reserve for Public Defender Trust Expenditures
B-16
2,150
1,675
Total Liabilities and Reserves
14,598,872
$
14,030,032
$
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
AS OF DECEMBER 31, 2024 AND 2023
COMPARATIVE BALANCE SHEETS - REGULATORY BASIS
2024
2023
Ref.
Assets
Cash and Cash Equivalents
C-2, C-3
7,958,349
$
10,142,950
$
Deferred Charges to Future Taxation:
Funded
C-4
56,125,446
62,228,037
Unfunded
C-5
28,081,577
28,628,577
Interfunds Receivable:
Due from Current Fund
C-6
-
4,552,090
Total Assets
92,165,372
$
105,551,654
$
Liabilities, Reserves and Fund Balance
Liabilities and Reserves:
Capital Improvement Fund
C-14
372,811
$
1,532,811
$
Improvement Authorizations:
Funded
C-7
6,848,618
9,753,874
Unfunded
C-7
3,254,331
4,418,158
Encumbrances Payable
C-8
3,315,618
4,893,572
General Serial Bonds
C-9
54,990,000
59,820,000
Capital Lease Payable
C-13
514,926
884,077
Capital Lease Payable - HCIA
C-10
-
826,216
Green Acres Loans Payable
C-11
620,520
697,744
Bond Anticipation Notes
C-12
21,955,000
22,502,000
Reserve for Retirement of Debt Service
C-15
-
29,007
Total Liabilities and Reserves
91,871,824
105,357,459
Fund Balance
C-1
293,548
194,195
Total Liabilities, Reserves and Fund Balance
92,165,372
$
105,551,654
$
Bonds and Notes Authorized But Not Issued
C-16
6,126,577
$
6,126,577
$
See Accompanying Notes to the Financial Statements.
17
EXHIBIT C-1
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
COMPARATIVE STATEMENTS OF CHANGES IN FUND BALANCE - REGULATORY BASIS
2024
2023
Ref.
Balance, December 31, 2023
C
194,195
$
117,927
$
Increased by:
Premium on HCIA Note Sales
C-2
99,353
76,268
Balance, December 31, 2024
C
293,548
$
194,195
$
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
AS OF DECMEBER 31, 2024 AND 2023
COMPARATIVE STATEMENT OF GENERAL FIXED ASSETS - REGULATORY BASIS
2024
2023
Ref.
Assets
Land
20,618,690
$
20,351,200
$
Buildings and Improvements
55,234,470
51,705,099
Machinery, Equipment and Other
20,092,619
19,470,175
Total Assets
D-1
95,945,779
$
91,526,474
$
Reserves
Investment in General Fixed Assets
95,945,779
$
91,526,474
$
Total Reserves
D-2
95,945,779
$
91,526,474
$
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 YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
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.
REPORTING PERIOD
The City Board of Commissioners authorized the changing of the City fiscal year from a year ended June 30 to a year ended
December 31. This report represents the first fiscal calendar year period of January 1, 2024 to December 31, 2024. the City’s
future fiscal accounting years will be from January 1 to December 31 of each year. This report also contains audited information
for the six month “transition year” for the period from July 1, 2023 to December 31, 2023. The six month transition year was
required by the Division for any municipality to revert to a calendar year.
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.
20
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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.
21
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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.
Long-Term Obligations - General long-term debt is recognized as a liability of the General Capital Fund for the full principal
amount.
22
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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.
23
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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.
24
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Budgetary Comparison Information is presented in the basic financial statements as Exhibits A-2 and A-3.
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 December 31, 2024 and
2023, 81% and 76%, 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 December 31, 2023 and June 30, 2023 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.
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.
25
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 2.
CASH, CASH EQUIVALENTS AND INVESTMENTS (continued)
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 December 31, 2024 and 2023 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 December 31, 2024 and 2023, the City has a balance of
$517,124 and $978,437, 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.
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 December 31, 2024
and 2023, the City had a balance of $544,592 and $517,339, respectively, in the New Jersey Cash Management Fund.
26
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
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 during the year ended December 31, 2024 and the
transition year ended December 31, 2023. The true tax collection rate, including the proceeds of the accelerated tax sales for
the year ended December 31, 2024 and the transition year ended December 31, 2023 was 98.9% and 99.6%, respectively. The
underlying tax collection rate for the year ended December 31, 2024 and the transition year ended December 31, 2023 was
98.2% and 99.1%, respectively.
During the year ended December 31, 2024, the City collected $20,081 from delinquent taxes which represented 49.7% of the
delinquent balances at December 31, 2023. During the transition year ended December 31, 2023, the City collected $12,840
from delinquent taxes which represented 63% of the delinquent balances at June 30, 2023.
Taxes collected in advance are recorded as cash liabilities in the financial statements. As of December 31, 2024 and 2023, the
City’s prepaid taxes were $510,958 and $558,171, 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.
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:
27
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 4.
MUNICIPAL DEBT (continued)
A detail of bonds, notes and loans issued and outstanding follows:
Dec. 31,
Dec. 31,
2024
2023
Issued:
General Bonds
54,990,000
$
59,820,000
$
HCIA Lease
-
826,216
Green Acres
620,520
697,744
Capital Leases
514,926
884,077
BANS
21,955,000
22,502,000
Bonds, notes and loans
78,080,446
84,730,037
Authorized by not Issued:
Bonds and notes
6,126,577
6,126,577
Total Issued and Authorized but not Issued
84,207,023
$
90,856,614
$
Dec. 31,
Dec. 31,
2024
2023
$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%
9,135,000
$
9,510,000
$
$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%
4,975,000
5,720,000
$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%
34,990,000
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%
5,890,000
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
$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
$800,000 Green Trust Loan of 2011 due in annual
installments of $33,915 to $48,525 through
March 2031, bearing interest at 2%
279,953
323,447
$70,000 Green Trust Loan of 2011 due in annual
installments of $2,968 to $4,246 through
March 2031, bearing interest at 2%
24,496
28,301
$590,143 Green Trust Loan of 2014 due in annual
installments of $12,447 to $36,155 through
February 2034, bearing interest at 2%
316,071
345,996
28
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 4.
MUNICIPAL DEBT (continued)
Continuation of bonds, notes and loans issued and outstanding:
The changes in debt for the year ended December 31, 2024 are as follows:
Dec. 31,
Dec. 31,
2024
2023
$248,357 Capital Lease of 2021 due in annual
installments of $46,787 to $52,642 through
November 2026, bearing interest at 2.99%
103,755
$
153,383
$
$433,085 Capital Lease of 2020
7,527
97,905
$289,970 Capital Lease of 2019 due in annual
installments of $53,878 to $62,262 through
July 2024, bearing interest at 3.68%
-
62,262
$319,776 Capital Lease of 2021 due in annual
installments of $60,243 to $67,778 through
November 2026, bearing interest at 2.99%
133,588
197,488
$274,933 Capital Lease of 2021 due in annual
installments of $51,706 to $57,816 through
April 2026, bearing various interest rates
113,519
167,187
$35,411 Capital Lease of 2022 due in annual
installments of $6,507 to $7,630 through
September 2026, bearing various interest rates
14,865
21,727
$225,134 Capital Lease of 2022 due in annual
installments of $41,009 to $49,738 through
August 1, 2027, bearing various interest rates
141,672
184,125
Bond Anticipation Notes issued 2024 and TY2023
and due 2025 and 2024, bearing interest at 4.25% - 5.0%
21,955,000
22,502,000
Total Debt Issued and Outstanding
78,080,446
$
84,732,060
$
Balance
Balance
Dec. 31, 2023
Paid
Dec. 31, 2024
Short-Term:
Bond Anticipation Notes
22,502,000
$
547,000
$
21,955,000
$
Long-Term:
General Bonds and Notes
59,820,000
4,830,000
54,990,000
Capital Leases
1,710,293
1,195,367
514,926
Green Acres Loans
697,744
77,224
620,520
Authorized but Not Issued
6,126,577
-
6,126,577
Total
90,856,614
$
6,649,591
$
84,207,023
$
29
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 4.
MUNICIPAL DEBT (continued)
The changes in debt for the transition year ended December 31, 2023 are as follows:
DEBT SERVICE TO MATURITY
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 December 31, 2024 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 December 31, 2024 and 2023, $8,750,000 and
$9,250,000, 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.
SUMMARY OF STATUTORY DEBT CONDITION - ANNUAL DEBT STATEMENT
At December 31, 2024 the equalized valuation basis of the City was $5,815,934,224. 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 1.282%. At December 31, 2023 the equalized valuation basis of the City was $4,868,228,323. 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 1.635%.
Balance
Balance
June 30, 2023
Paid
Dec. 31, 2023
Short-Term:
Bond Anticipation Notes
22,793,000
$
291,000
$
22,502,000
$
Long-Term:
General Bonds and Notes
64,420,000
4,600,000
59,820,000
Capital Leases
2,633,655
923,362
1,710,293
Green Acres Loans
735,785
38,041
697,744
Authorized but Not Issued
6,126,577
-
6,126,577
Total
96,709,017
$
5,852,403
$
90,856,614
$
Year Ending
December 31,
Principal
Interest
Principal
Interest
Principal
Interest
Total
2025
5,025,000
$
1,575,244
$
232,142
$
20,224
$
78,778
$
12,018
$
6,954,870
$
2026
5,210,000
1,444,326
233,046
11,464
80,361
10,435
6,992,329
2027
5,405,000
1,304,995
49,738
2,696
81,977
8,820
6,855,922
2028
5,615,000
1,156,246
-
-
83,624
7,172
6,862,042
2029
5,860,000
996,071
-
-
85,305
5,491
6,946,867
2030-2034
27,875,000
2,088,901
-
-
210,472
8,764
30,183,137
54,990,000
$
8,565,783
$
514,926
$
34,384
$
620,518
$
52,700
$
64,795,167
$
General Bonds
Capital Leases
Green Acres Trust Loans
Gross Debt
Deductions
Net Debt
Gross Debt
Deductions
Net Debt
Local School Debt
-
$
-
$
-
$
-
$
-
$
-
$
General Debt
92,442,097
17,885,000
74,557,097
98,396,321
18,789,007
79,607,314
92,442,097
$
17,885,000
$
74,557,097
$
98,396,321
$
18,789,007
$
79,607,314
$
At December 31, 2024
At December 31, 2023
30
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 4.
MUNICIPAL DEBT (continued)
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 December 31, 2024 and 2023 appropriated and included as anticipated revenue in the succeeding year’s
budget were as follows:
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), all of
which are multiple employer plans sponsored and administered by the State of New Jersey. The PERS and PFRS are cost
sharing multi-employer contributory defined benefit public employee retirement systems. The DCRP is a defined contribution
plan.
STATE-MANAGED PENSION PLANS – PERS
Regulatory Basis Disclosure –The New Jersey Division of Local Government Services allows municipalities to include in
their annual audits the most recent available audited PERS GASB 68 financial information published by the New Jersey
Division of Pension and Benefits. As of the date of this report information for the period ended June 30, 2024 was not available,
therefore the information dated June 30, 2023 is disclosed.
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
Dec. 31, 2024
Dec. 31, 2023
3-1/2% of Equalized Valuation Basis
203,557,698
$
170,387,991
$
Net Debt
74,557,097
79,607,314
Remaining Borrowing Power
129,000,601
$
90,780,677
$
Fund Balance
Utilized in Budget
At
December 31,
of Succeeding Year
Year Ended December 31, 2024
12,026,741
$
-
$
*
Transition Year Ended December 31, 2023
9,348,059
$
TY
-
$
TY - Represents the Six Month Transition Year beginngin July 1, 2023 and ending December 31, 2023.
* - Per introduced budget subject to amendment prior to adoption.
31
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 6.
RETIREMENT SYSTEMS (continued)
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, 2023 and 2022 are based on the ratio of each
employer’s contributions to total employer contributions of the group for the fiscal years ended June 30, 2023 and 2022. At
June 30, 2023 and 2022, the City’s net pension liability for PERS, including 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 of the as of June 30, 2023 and 2022, 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, 2023 and June 30, 2022 measurement dates were
determined by actuarial valuations as of July 1, 2022 and 2021, respectively, which were rolled forward to June 30, 2023 and
2022, respectively. These actuarial valuations used the following actuarial assumptions, applied to all periods in the
measurement:
Year Ended
Net Pension
June 30,
Rate
Change
Liability
2023
0.15627%
0.01359%
22,634,415
$
2022
0.14268%
-0.00480%
21,532,456
$
Proportionate Share
Rate
Amount
Rate
Amount
1% Decrease
6.00%
29,465,192
$
6.00%
27,662,899
$
Current Discount Rate
7.00%
22,634,415
7.00%
21,532,456
1% Increase
8.00%
16,820,520
8.00%
16,315,203
2023
2022
Investment
Measurement
Rate of
Date
Price
Wage
Return
June 30, 2023
2.75%
3.25%
7.00%
June 30, 2022
2.75%
3.25%
7.00%
Inflation Rate
Salary Increases
Based on Years of Service
2.75-6.55%
2.75-6.55%
32
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 6.
RETIREMENT SYSTEMS (continued)
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, 2022
and 2021 valuations were based on the results of an actuarial experience study for the period July 1, 2018 to June 30, 2021.
Discount Rate – The discount rate used to measure the total pension liability was 7.00% as of June 30, 2023 and 2022. 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 non-employer 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, 2023 and June 30, 2022) 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, 2023 and 2022 are summarized in the following table:
Target
Long-Term Expected
Target
Long-Term Expected
Asset Class
Allocation
Rate of Return
Allocation
Rate of Return
U.S. Equity
28.00%
8.98%
27.00%
8.12%
Non-U.S. Developed Markets Equity
12.75%
9.22%
13.50%
8.38%
Emerging Markets Equity
5.50%
11.13%
5.50%
10.33%
Private Equity
13.00%
12.50%
13.00%
11.80%
Real Estate
8.00%
8.58%
8.00%
11.19%
Real Assets
3.00%
8.40%
3.00%
7.60%
High Yield
4.50%
6.97%
4.00%
4.95%
Private Credit
8.00%
9.20%
8.00%
8.10%
Investment Grade Credit
7.00%
5.19%
7.00%
3.38%
Cash Equivalents
2.00%
3.31%
4.00%
1.75%
U.S. Treasuries
4.00%
3.31%
4.00%
1.75%
Risk Mitigation Strategies
3.00%
6.21%
3.00%
4.91%
International Small Cap Equity
1.25%
9.22%
*
*
June 30, 2023
June 30, 2022
33
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
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, 2023 and 2022:
Amounts reported at June 30, 2023 and 2022 as net 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 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:
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
49,723
$
1,371,743
$
(1,322,020)
$
66,714
$
3,224,261
$
(3,157,547)
$
Difference Between Expected
and Actual Experience
216,414
92,522
123,892
155,411
137,051
18,360
Net Difference Between
Projected and Actual Earnings
on Pension Plan Investments
104,234
-
104,234
891,209
-
891,209
Changes in Proportion
1,819,120
989,381
829,739
37,926
1,506,868
(1,468,942)
2,189,491
$
2,453,646
$
(264,155)
$
1,151,260
$
4,868,180
$
(3,716,920)
$
June 30, 2023
June 30, 2022
Year Ended
Year Ended
June 30,
June 30,
2024
(128,214)
$
2023
(3,053,978)
$
2025
(71,564)
2024
(1,555,899)
2026
100,006
2025
(758,782)
2027
(17,897)
2026
1,655,375
2028
304
2027
(3,636)
(264,155)
$
(3,716,920)
$
As at June 30, 2022
As at June 30, 2023
Base Wages
Amount
As a
As a
Subject to
Paid or
Percentage of
Amount
Percentage of
Contributions
Charged
Base Wages
Contributed
Base Wages
December 31,
2024
12,762,324
$
2,150,855
$
16.85%
957,528
$
7.50%
*December 31,
2023
6,337,814
$
-
$
0.00%
475,861
$
7.50%
June 30,
2023
12,427,377
$
1,860,888
$
14.97%
932,055
$
7.50%
*Represents Six Month Transition Year from July 1, 2023 to December 31, 2023
Year Ended
Employee Contribution
City Contribution
34
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 6. RETIREMENT SYSTEMS (continued)
STATE-MANAGED PENSION PLANS – PFRS
Regulatory Basis Disclosure –The New Jersey Division of Local Government Services allows municipalities to include in
their annual audits the most recent available audited PFRS GASB 68 financial information published by the New Jersey
Division of Pension and Benefits. As of the date of this report information for the period ended June 30, 2024 was not available,
therefore the information dated June 30, 2023 is disclosed.
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.
The allocation percentages for each group of the plan as of June 30, 2023 and 2022 are based on the ratio of each employer’s
contributions to total employer contributions of the group for the fiscal years ended June 30, 2023 and 2022.
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.
35
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 6. RETIREMENT SYSTEMS (continued)
At June 30, 2023 and 2022, 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, 2023 and 2022, 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, 2023 and June 30, 2022 measurement dates were
determined by actuarial valuations as of July 1, 2022 and 2021, respectively, which were rolled forward to June 30, 2023 and
2022, respectively. These actuarial valuations used the following actuarial assumptions:
Mortality – For the June 30, 2023 and June 30, 2022 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% 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, 2022 and July 1, 2021 valuation were based on the results of an actuarial experience
study for the period July 1, 2018 to June 30, 2021.
Discount Rate – The discount rate used to measure the total pension liability was 7.00% as of June 30, 2023 and 2022. 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 non-employer 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 June 30, 2023 and June 30, 2022) 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.
State of N.J.
Year
(nonemployer)
Ended
Net Pension
On-Behalf
June 30,
Rate
Change
Liability
of City
Total
2023
0.54786%
0.00024%
60,532,017
$
11,153,728
$
71,685,745
$
2022
0.54762%
-0.01753%
62,682,244
$
11,155,602
$
73,837,846
$
City (employer)
Proportionate Share
Rate
Amount
Rate
Amount
1% Decrease
6.00%
84,340,766
$
6.00%
86,006,808
$
Current Discount Rate
7.00%
60,532,017
7.00%
62,682,244
1% Increase
8.00%
40,705,017
8.00%
43,264,431
2023
2022
Investment
Measurement
Rate of
Date
Price
Wage
Return
June 30, 2023
2.75%
3.25%
7.00%
June 30, 2022
2.75%
3.25%
7.00%
Inflation Rate
Salary Increases
Based on Years of Service
3.25-16.25%
3.25-16.25%
36
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 6. RETIREMENT SYSTEMS (continued)
Best estimates of arithmetic rates of return for each major asset class included in PFRS target asset allocations as of June 30,
2023 and 2022 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,
2023 and 2022:
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized
in pension expense as follows:
Target
Long-Term Expected
Target
Long-Term Expected
Asset Class
Allocation
Rate of Return
Allocation
Rate of Return
U.S. Equity
28.00%
8.98%
27.00%
8.12%
Non-U.S. Developed Markets Equity
12.75%
9.22%
13.50%
8.38%
Emerging Markets Equity
5.50%
11.13%
5.50%
10.33%
Private Equity
13.00%
12.50%
13.00%
11.80%
Real Estate
8.00%
8.58%
8.00%
11.19%
Real Assets
3.00%
8.40%
3.00%
7.60%
High Yield
4.50%
6.97%
4.00%
4.95%
Private Credit
8.00%
9.20%
8.00%
8.10%
Investment Grade Credit
7.00%
5.19%
7.00%
3.38%
Cash Equivalents
2.00%
3.31%
4.00%
1.75%
U.S. Treasuries
4.00%
3.31%
4.00%
1.75%
Risk Mitigation Strategies
3.00%
6.21%
3.00%
4.91%
International Small Cap Equity
1.25%
9.22%
*
*
June 30, 2023
June 30, 2022
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
130,649
$
4,087,362
$
(3,956,713)
$
171,787
$
7,890,456
$
(7,718,669)
$
Difference Between Expected
and Actual Experience
2,591,860
2,886,840
(294,980)
2,837,166
3,840,140
(1,002,974)
Net Difference Between
Projected and Actual Earnings
on Pension Plan Investments
3,082,781
-
3,082,781
5,739,852
-
5,739,852
Changes in Proportion
1,281,138
1,755,792
(474,654)
2,136,049
2,312,741
(176,692)
7,086,428
$
8,729,994
$
(1,643,566)
$
10,884,854
$
14,043,337
$
(3,158,483)
$
June 30, 2023
June 30, 2022
Year Ended
Year Ended
June 30,
June 30,
2024
(1,728,077)
$
2023
(3,320,889)
$
2025
(1,104,349)
2024
(2,122,255)
2026
(1,052,014)
2025
(2,021,683)
2027
2,197,495
2026
4,222,982
2028
21,178
2027
40,698
Thereafter
22,201
Thereafter
42,665
(1,643,566)
$
(3,158,483)
$
37
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 6. RETIREMENT SYSTEMS (continued)
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:
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 year ended December 31, 2024 and the transition year ended
December 31, 2023, inclusive of principal and interest, were $366,097 and $-0-, respectively. The payment due for the pension
deferral, inclusive of principal and interest, in the year ended December 31, 2025 is $368,833.
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.
Base Wages
Amount
As a
As a
Subject to
Paid or
Percentage of
Amount
Percentage of
Contributions
Charged
Base Wages
Contributed
Base Wages
December 31,
2024
19,058,752
$
7,480,072
$
39.25%
1,908,146
$
10.00%
*December 31,
2023
9,657,283
$
-
$
0.00%
965,728
$
10.00%
June 30,
2023
19,987,255
$
7,417,128
$
37.11%
1,998,725
$
10.00%
*Represents Six Month Transition Year from July 1, 2023 to December 31, 2023
Year Ended
City Contribution
Employee Contribution
38
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 6. RETIREMENT SYSTEMS (continued)
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.
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:
2024
2022
2020
Active employees
364
319
346
Retirees
462
422
388
826
741
734
39
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 7.
OTHER POST-EMPLOYMENT BENEFITS (continued)
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 December 31, 2024, June 30, 2024 and June 30, 2023, 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 year ended December 31, 2024, (six month) transition year ended December 31, 2023 and fiscal year June
30, 2023, the City contributed $8,128,744, $14,810,266, and $14,326,866, 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 December 31, 2024, based on a discount rate of 4.08% and the Entry
Age Normal cost method, is $395,495,457, which includes liabilities for retirees and actives as detailed below. The Total OPEB
Liability as of June 30, 2024, based on a discount rate of 3.93% and the Entry Age Normal cost method, is $399,758,822, which
includes liabilities for retirees and actives as detailed below. 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 components of the net OPEB liability of the City at December 31, 2024, June 30, 2024 and June 30, 2023 were as follows:
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate - The following presents the City’s net OPEB liability
as of December 31, 2024 and June 30, 2023, 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 noted in the table:
Dec. 31, 2024
June 30, 2024
June 30, 2023
Retiree OPEB Liability
278,072,023
$
285,799,724
$
263,106,333
$
Active Employee OPEB Liability
117,423,434
113,959,098
112,778,916
Total OPEB liability
395,495,457
399,758,822
375,885,249
OPEB Plan fiduciary net position
-
-
-
Net OPEB liability
395,495,457
$
399,758,822
$
375,885,249
$
Plan Fiduciary Net Position as a
Percentage of total OPEB liability
0.00%
0.00%
0.00%
1% Decrease
3.08%
461,676,111
$
2.55%
441,611,063
$
Current Discount Rate
4.08%
395,495,457
3.55%
375,885,249
1% Increase
5.08%
343,127,964
4.55%
324,291,267
June 30, 2023
December 31, 2024
40
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 7.
OTHER POST-EMPLOYMENT BENEFITS (continued)
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 December 31, 2024 and June 30, 2023, 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 noted in the
table below:
Actuarial Assumptions - The total OPEB liability as of December 31, 2024, June 30, 2024 and June 30, 2023 was based on
the valuation results as of June 30, 2024, June 30, 2024 and June 30, 2022, respectively, and rolled forward to the December
31, 2024 and June 30, 2023 measurement dates. 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 December 31, 2024,
June 30, 2024 and June 30, 2023 was as follows:
Dec. 31, 2024
June 30, 2023
1% Decrease
338,040,183
$
318,040,726
$
Current Healthcare Cost Trend Rate
395,495,457
375,885,249
1% Increase
469,445,044
450,997,774
2024 (December 31 and June 30)
2023 (June 30)
Actuarial cost method
Entry Age Normal Cost Method
Entry Age Normal Cost Method
Salary increase
4% per year
4% per year
Discount rate
4.08% (3.93% as of June 30, 2024)
3.55%
Healthcare cost trend rates
Pre-65 Medical
Year 1 trend
7.00%
5.30%
Ultimate trend
Decreasing 0.5% per year to an ultimate rate of 4.50% for
2029 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 Medical
Year 1 trend
4.50%
4.50%
Ultimate trend
4.50%
4.50%
Prescription Drug
Year 1 trend
7.00%
6.25%
Ultimate trend
Decreasing 0.5% per year to an ultimate rate of 4.50% for
2029 and later years
Decreasing 0.25% - 0.5% per year to an ultimate rate of
4.50% for 2026 and later years
Medicare Part B
Year 1 trend
5.00%
5.00%
Ultimate trend
5.00%
5.00%
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.
July 1, 2024 -
July 1, 2023 -
July 1, 2022 -
December 31, 2024
June 30, 2024
June 30, 2023
Employer service cost
4,834,253
$
8,332,768
$
8,332,768
$
Recognition of changes in TOL due to
assumption changes and actuarial experience
(6,412,064)
(13,969,196)
(13,969,196)
Interest cost
7,870,389
13,132,041
13,132,041
OPEB expense
6,292,578
$
7,495,613
$
7,495,613
$
41
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 7.
OTHER POST-EMPLOYMENT BENEFITS (continued)
The OPEB deferred outflows and deferred inflows of resources at December 31, 2024, June 30, 2024 and June 30, 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 December 31, 2024, June 30, 2024 and June 30, 2023:
December 31, 2024
June 30, 2024
June 30, 2023
Deferred Inflows of Resources:
Differences between expected and actual
demographic experience
-
$
(2,756,469)
$
(2,756,469)
$
Changes of assumptions
(38,407,521)
(49,344,904)
(49,344,904)
Deferred Outflows of Resources
Differences between expected and actual
demographic experience
22,179,947
7,564,542
7,564,542
Changes of assumptions
-
2,909,699
2,909,699
(16,227,574)
$
(41,627,132)
$
(41,627,132)
$
Dec. 31
June 30,
2025
(12,530,665)
2024
(13,969,199)
2026
(5,469,451)
2025
(14,122,429)
2027
1,298,301
2026
(13,535,504)
2028
1,298,301
2027
-
2029
(87,457)
2028
-
Thereafter
(736,603)
Thereafter
-
(16,227,574)
$
(41,627,132)
$
As at December 31, 2024
As at June 30, 2023
Dec. 31, 2024
June 30, 2024
June 30, 2023
Total OPEB liability - beginning of year
399,758,822
$
375,885,249
$
368,747,306
$
Service Cost
4,834,253
8,666,079
8,332,768
Interest Cost
7,870,389
13,388,690
13,132,041
Contributions made
(8,128,744)
(14,810,266)
(14,326,866)
Actuarial assumption changes
(8,839,263)
(7,901,165)
-
Actuarial demographic (gain) or loss
-
24,530,235
-
Total OPEB liability - end of year
395,495,457
$
399,758,822
$
375,885,249
$
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
395,495,457
$
399,758,822
$
375,885,249
$
Funded ratio
0.00%
0.00%
0.00%
Covered payroll
31,821,076
$
31,821,076
$
32,414,632
$
Net OPEB liability as a percentage of covered payroll
1243%
1256%
1160%
42
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 7.
OTHER POST-EMPLOYMENT BENEFITS (continued)
Participation in State Health Benefits Plan – Special Funding Situation
Regulatory Basis Disclosure –The New Jersey Division of Local Government Services allows municipalities to include in
their annual audits the most recent available audited GASB 75 financial information published by the New Jersey Division of
Pension and Benefits. As of the date of this report information for the period ended June 30, 2024 was not available, therefore
the information dated June 30, 2023 is disclosed.
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 City 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 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.
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, 2023 and
2022 associated with the City is $28,532,304 and $33,656,011, respectively, which represents 161 and 164 plan members,
respectively, constituting 0.817757% and 0.997567%, respectively, of the State’s total proportionate share of the net OPEB
liability.
43
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
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
December 31, 2024 and 2023. As of December 31, 2024 and 2023, the total accumulated compensated absence liability was
$10,442,596 and $8,157,873, 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 December 31, 2024,
the City estimated $4,352,865 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 December 31, 2024 and 2023.
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.
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 year ended December 31,
2024:
Balance
Balance
Dec. 31, 2023
Additions
Deletions
Dec. 31, 2024
Land
20,351,200
$
267,490
$
-
$
20,618,690
$
Buildings & Improvements
51,705,099
3,529,371
-
55,234,470
Machinery & Equipment
19,470,175
622,444
-
20,092,619
91,526,474
$
4,419,305
$
-
$
95,945,779
$
44
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 10.
FIXED ASSETS (continued)
The City had the following investment balance and activity in general fixed assets as of and for the transition year ended
December 31, 2023:
NOTE 11.
CLEARING ACCOUNT
The City maintains a claims account, or a cash clearing account, from which bills are paid for all funds.
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 December
31, 2024 and 2023, deferred charges shown on the balance sheets of the Current Fund are as follows:
*Calendar Year 2025 budget not adopted as of the audit report date. 2025 appropriations are subject to change.
Balance
Balance
June 30, 2023
Additions
Deletions
Dec. 31, 2023
Land
20,351,200
$
-
$
-
$
20,351,200
$
Buildings & Improvements
51,324,409
380,690
-
51,705,099
Machinery & Equipment
16,109,446
3,360,729
-
19,470,175
87,785,055
$
3,741,419
$
-
$
91,526,474
$
Calendar Year
Balance to
Balance
Results of
Budget
Balance
2025 Budget*
Succeeding
Dec. 31, 2023
Current Year
Reclass
Appropriations
Dec. 31, 2024
Appropriation
Budgets
Overexpenditures - Current Fund
1,458,476
$
3,208,607
$
-
$
1,458,476
$
3,208,607
$
3,208,607
$
-
$
Operating Deficit
886,337
-
-
886,337
-
-
-
COVID-19 Revenue Loss
1,035,500
-
-
345,230
690,270
453,000
237,270
Emergency Authorizations
11,312,880
-
-
9,125,280
2,187,600
1,095,600
1,092,000
Special Emergency Authorizations (40A:4-53)
Tax Map
77,800
-
38,900
38,900
31,400
7,500
Revaluation
800,000
-
-
200,000
600,000
200,000
400,000
Retirement Benefits
3,960,787
1,084,279
-
1,316,080
3,728,986
1,179,365
2,549,621
19,531,780
$
4,292,886
$
-
$
13,370,303
$
10,454,363
$
6,167,972
$
4,286,391
$
Calendar Year
Balance to
Balance
Results of
Budget
Balance
2024 Budget*
Succeeding
June 30, 2023
Current Year
Reclass
Appropriations
Dec. 31, 2023
Appropriation
Budgets
Overexpenditures - Current Fund
1,458,476
$
-
$
-
$
1,458,476
$
1,458,476
$
-
$
Operating Deficit
-
886,337
-
886,337
886,337
-
COVID-19 Revenue Loss
1,035,500
-
-
1,035,500
345,230
690,270
Emergency Authorizations
5,703,600
6,819,280
-
1,210,000
11,312,880
9,125,280
2,187,600
Special Emergency Authorizations (40A:4-53)
Tax Map
77,800
-
-
77,800
38,900
38,900
Revaluation
800,000
-
800,000
200,000
600,000
Retirement Benefits
3,181,376
779,411
-
-
3,960,787
1,316,080
2,644,707
12,256,752
$
8,485,028
$
-
$
1,210,000
$
19,531,780
$
13,370,303
$
6,161,477
$
45
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 13.
INTERFUND TRANSACTIONS
Interfunds receivable remained on the balance sheets of the fund financial statements at December 31, 2024 and 2023. The
interfund balances are between the Current Fund and the Federal and State Grant Fund and General Capital Fund. 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 December 31, 2024 and 2023, there were no outstanding interfund balance son the books of
the City.
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 December 31, 2043 and 2023 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
transition year ended December 31, 2024 and 2023, no amounts were required to be budgeted.
No additional Board bonds or notes were authorized or issued during the transition year ended December 31, 2024 and 2023.
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 transition year ended December 31, 2024 and 2023, the City received $8,132,796 and $572,306, respectively, for such
reimbursements. As of December 31, 2024 and 2023, the City has receivables from the Board of $2,645,153 and $1,127,133,
respectively, for prior year accrued budget revenues. As described in Note 1, the Board is considered a component unit of the
City.
NOTE 15.
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 year ended December 31, 2024 and the transition
year ended December 31, 2023, the City collected $554,002 and $231,816, respectively, in PILOT agreements, and abated
property taxes of approximately $734,638 and $2,208,537, respectively, in accordance with the terms of the individual
abatement agreements.
46
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 16.
ECONOMIC DEPENDENCY
The City is a recipient of State Aid. During the year ended December 31, 2024 and the six month transition year ended
December 31, 2023, State Aid accounted for 36% and 35%, 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 year ended December 31, 2024 and the six month transition year ended December 31, 2023, the City received
$48,726,166 and $7,000,000, respectively, in various forms of Transitional Aid from the State of New Jersey.
NOTE 17.
PREPAID DEBT SERVICE – QUALIFIED BONDS
From July 1, 2023 to December 31, 2023 the City operated on a six-month transition year as an interim period between its
fiscal year ended June 30, 2023 and its reversion to a calendar fiscal year beginning January 1, 2024. Since this transition year,
Qualified Bond have been made by the State on the City’s behalf and incorporated into the City’s State Aid formula on a State
Fiscal Year basis, while the City operations on a Calendar Year. This results in prepaid debt service in the amount of Qualified
Bonds paid by the State on the City’s behalf for the six month period subsequent to year end. The following schedule
summarizes the State Aid received, qualified bond payments applied and the prepaid amounts as of December 31, 2024 and
2023.
NOTE 18.
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. The following are matters in which extensive damages are claimed by the plaintiff, and could potentially
have a material adverse effect to the City.
Just Block 112 LLC, et al vs. City – Plaintiff alleges interference by the City with respect to the plaintiff’s desire (and
application) to redeveloper certain real property in a neighboring municipality. Counsel representing the City in this case does
not anticipate an unfavorable outcome, but the plaintiffs assert damages of $110,000,000.
2024
2023
Balance, Beginning of Year
1,198,414
$
-
$
Add:
State Aid
73,467,881
32,169,460
74,666,295
32,169,460
Less:
Received in Cash
66,931,140
25,441,692
Qualified Bond Payments
6,465,111
5,529,354
Balance, End of Year
1,270,044
$
1,198,414
$
47
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 18.
CONTINGENT LIABILITIES (continued)
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 the year ended December
31, 2024 and the transition year ended December 31, 2023 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 December 31, 2024 and 2023, 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.
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 transition year ended December 31, 2023 and
the fiscal year ended June 30, 2023, 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 as of December 31, 2024 and 2023. The NHSA estimates that no
amounts will be due from the City for calendar year ending December 31, 2025.
48
CITY OF UNION CITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
NOTE 18.
CONTINGENT LIABILITIES (continued)
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 year ended December 31, 2024 and the
transition year ended December 31, 2023, the City contributed $22,171,016 and $10,063,730, 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 year ended December 31, 2024 and the transition year ended December
31, 2023, the City was not required to contribute any amount above its percentage share of debt service for the capital debt.
NOTE 19.
SUBSEQUENT EVENTS
Management has evaluated subsequent events through June 16, 2025, the date which the financial statements were available to
be issued. The following material subsequent events have been noted:
On March 4, 2025, the City adopted an ordinance appropriating $750,000 for the completion of various capital improvements.
The City authorized funding from the Capital Improvement Fund to finance the acquisition.
On April 1, 2025, the City adopted an ordinance appropriating $100,000 for the completion of various capital improvements.
The City authorized funding from the Capital Improvement Fund to finance the acquisition.
On April 15, 2025, the City adopted an ordinance appropriating $300,000 for the completion of various lighting improvements.
The City authorized funding from the Capital Improvement Fund to finance the acquisition.
On May 16, 2025, the City adopted an ordinance appropriating $600,000 for the completion of various lighting improvements.
The City authorized funding from the Capital Improvement Fund to finance the acquisition.
On March 13, 2025, the City issued $15,589,000 of Tax-Exempt County-Guaranteed Pooled Notes through the Hudson
County Improvement Authority’s Local Union Loan Program. The notes mature March 12, 2026 at an interest rate of 4%.
The City is expecting to issue $6,747,000 of General Obligation Bonds, Series 2025, on or around July 1, 2025. Annual
principal payments of $275,000 to $547,000 are anticipated from 2026 through 2042. The bonds are being issued pursuant to
the provisions of the Municipal Qualified Bond Act.
49
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CITY OF UNION CITY
REPORT OF AUDIT
STATISTICAL SECTION
(unaudited)
CITY OF UNION CITY
ROSTER OF OFFICIALS IN OFFICE
JANUARY 1, 2024 THROUGH DECEMBER 31, 2024
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. ….............................
Resigned Oct. 1, 2024
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 YEAR ENDED DECEMBER 31, 2024 AND THE TRANSITION YEAR ENDED DECEMBER 31, 2023
COMPARATIVE SCHEDULES OF OPERATIONS AND CHANGES IN FUND BALANCE-CURRENT FUND
Amount
Percent
Amount
Percent
Revenue and Other Income Realized:
Miscellaneous Revenue Anticipated
110,449,780
$
46.72%
45,999,998
$
41.91%
Receipts from Delinquent Taxes
20,081
0.01%
12,840
0.01%
Receipts from Current Taxes
122,418,101
51.78%
62,126,875
56.61%
Non-Budget Revenues
544,259
0.23%
1,004,964
0.92%
Other Credits to Income
2,972,810
1.26%
605,991
0.55%
236,405,031
100.00%
109,750,668
100.00%
Expenditures:
Budget Appropriations
196,200,918
82.65%
99,683,271
84.31%
School and County Taxes
38,246,863
16.11%
16,090,212
13.61%
Other Charges
2,940,220
1.24%
2,462,213
2.08%
237,388,001
100.00%
118,235,696
100.00%
Change in Operations, net of Surplus Utilized
(982,970)
(8,485,028)
Adjustments to Income: Deferred Charges
of Budget of Succeeding Year(s)
3,661,652
7,598,691
Deficit in Operations to be Raised
in Budget of Succeeding Year
886,337
Fund Balance, July 1
9,348,059
9,348,059
Fund Balance, June 30
12,026,741
$
9,348,059
$
* 6 month transition year: July 1, 2023 to December 31, 2023
*December 31, 2023
December 31, 2024
51
Table 2
CITY OF UNION CITY
STATISTICAL SECTION (UNAUDITED)
FIVE-YEAR HISTORY OF TAX RATE AND APPORTIONMENT OF TAX RATE
Total
Local
Year Ended
Tax Rate
Municipal
County
School
December 31,
2024
1.848
1.275
0.342
0.231
*December 31,
2023
7.688
5.482
1.220
0.986
June 30,
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
Calendar Year 2024 reflects the first year of a revaluation.
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
Collection
Year Ended
Tax Levy
Collections
Percentage
December 31,
2024
123,720,945
$
122,418,101
$
98.95%
*December 31,
2023
61,336,526
61,089,271
99.60%
June 30,
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%
FIVE-YEAR HISTORY OF DELINQUENT TAXES AND TAX TITLE LIENS
Table 4
Delinquent
Percent of
Year Ended
Liens
Taxes
Total
Tax Levy
December 31,
2024
36,416
$
65,359
$
101,775
$
0.08%
*December 31,
2023
35,400
40,399
75,799
0.12%
June 30,
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%
* 6 month transition year: July 1, 2023 to December 31, 2023
52
Table 5
CITY OF UNION CITY
STATISTICAL SECTION (UNAUDITED)
FIVE-YEAR HISTORY OF PROPERTY ACQUIRED BY TAX TITLE LIEN LIQUIDATION
Year Ended
Amount
December 31,
2024
-
$
*December 31,
2023
-
June 30,
2023
-
2022
-
2021
-
FIVE-YEAR HISTORY OF FUND BALANCES - CURRENT FUND
Table 6
Utilized in
Budget of
Year Ended
Fund Balance
Succeeding Year
December 31,
2024
12,026,741
$
-
$
i
*December 31,
2023
9,348,059
-
C
June 30,
2023
9,348,059
-
*
2022
6,471,744
3,275,535
2021
4,209,405
467,457
* 6 month transition year: July 1, 2023 to December 31, 2023
C Subsequent year is a 12 month calendar year ended December 31, 2024.
i Based on introduced budget. Budget not adopted as of audit report date.
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 YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF CASH - TREASURER
Ref.
Balance, December 31, 2023
A
7,301,602
$
1,821,867
$
Increased by Receipts:
Miscellaneous Revenues Not Anticipated
A-2
544,259
$
-
$
State Aid
A-6a
66,931,140
-
Due to State - Payment Error
A-6
10,000,000
-
Tax Collections - Delinquent Taxes
A-2
21,913
-
Tax Collections - Current Taxes
A-2
116,834,807
-
State ARP Disaster Recovery Mitigation
A-2
3,000,000
Tax Overpayments
A-8
231,793
-
Revenue Accounts Receivable
A-10
16,556,737
-
Interfunds
A-11 / A-27
19,048,988
-
Veterans and Sr. Citizens Deductions
A-12
22,760
-
Other Receivables
A-14
1,385,498
-
Other Intergovernmental Payables
A-16
840,789
-
Liquor License Retirement
A-17
13,625
-
Prepaid Taxes
A-18
510,958
-
Grants Receivable
A-25
-
14,431,085
Unappropriated Grants
A-28
-
42,709
235,943,267
14,473,794
243,244,869
16,295,661
Decreased by Disbursements:
Refund of Prior Year Revenue
A-1
201,841
-
Current Budget Appropriations
A-3
146,217,207
-
Due to State - Payment Error
A-6
10,000,000
-
Tax Overpayments
A-8
227,266
-
Interfunds
A-11 / A-27
24,993,402
14,008,000
Other Receivables
A-14
1,339,980
-
Appropriation Reserves
A-15
6,156,929
-
Other Intergovernmental Payables
A-16
795,519
-
Local School District Taxes Payable
A-19
15,418,637
-
County Taxes Payable
A-20
22,852,409
-
Accounts Payable
A-21
360,151
-
Special Emergency Notes Paid by Budget
A-24
3,337,000
-
Grants Appropriated
A-26
-
-
231,900,341
14,008,000
Balance, December 31, 2024
A
11,344,528
$
2,287,661
$
State and Federal Grants Fund
Current Fund
54
EXHIBIT A-5
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF CHANGE FUND
Ref.
Balance, December 31, 2024 and 2023
A
398
$
SCHEDULE OF DUE TO STATE - OVERPAYMENT RECEIVED
EXHIBIT A-6
Ref.
Balance, December 31, 2023
A
-
$
Increased by:
Cash Receipts
A-4
10,000,000
10,000,000
Decreased by:
Cash Disbursements
A-4
10,000,000
Balance, December 31, 2024
A
-
$
SCHEDULE OF DUE FROM STATE OF NEW JERSEY PREPAID QUALIFIED BONDS
EXHIBIT A-6a
Ref.
Balance, December 31, 2023
A
1,198,414
$
Increased by:
State Aid Anticipated
A-2
71,467,881
$
Converted to REAP by State
A-2
2,000,000
73,467,881
74,666,295
Decreased by:
Cash Receipts
A-4
66,931,140
Debt Service Paid In Lieu of Aid Receipts
A-3
6,465,111
73,396,251
Balance, December 31, 2024
A
1,270,044
$
55
EXHIBIT A-7
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY
Senior Citizens
Balance
Added
2024
July 1, 2023-
and Veterans
Transferred to
Balance
Year
Dec. 31, 2023
Taxes
Tax Levy
Dec. 31, 2023
2024
Deductions
Tax Title Liens
Cancellations
Dec. 31, 2024
Prior Year Tax
40,399
-
$
-
$
-
$
21,913
$
(1,832)
$
-
$
9,179
$
11,139
$
.
Current Year
-
-
123,720,945
558,171
121,836,930
23,000
3,685
1,244,939
54,220
40,399
$
-
$
123,720,945
$
558,171
$
121,858,843
$
21,168
$
3,685
$
1,254,118
$
65,359
$
A
A-18
A-2
A-12
A-13
A
Analysis of Property Tax Levy:
Delinquent
Current
Tax Yield:
2024 Collections
21,913
$
121,836,930
$
General Purpose Tax
118,596,588
$
Collections 7/1/23-12/31/23
-
558,171
Regional Efficiency Aid Program (REAP)
4,996,630
Senior Citizen and Veteran Deductions
(1,832)
23,000
Added Taxes (N.J.S.A. 54:4-63.1 et. seq.)
127,727
20,081
$
122,418,101
$
123,720,945
A-2
A-2
Reduction due to Tax Appeals
1,419,067
122,301,878
$
Tax Levy
Local District School Tax
A-19
15,418,637
$
County Taxes
A-20
22,186,210
County Open Space Taxes
A-20
618,443
Due to County for Added Taxes
A-20
23,573
Amount to be Raised by Taxes
A-2
85,307,545
Added and Omitted Assessments
104,154
Difference to Levy as Assessed
62,383
123,720,945
$
Collections
56
EXHIBIT A-8
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF TAX OVERPAYMENTS
Ref.
Balance, December 31, 2023
A
8,946
$
Increased by:
Reclassed from Tax Collections for:
County Tax Appeals
78,480
$
State Tax Appeals
65,006
Cash Overpayments
88,307
A-4
231,793
240,739
Decreased by:
Cash Disbursements
A-4
227,266
$
Apply to Current Year Taxes
A-2
2,123
229,389
Balance, December 31, 2024
A
11,350
$
SCHEDULE OF DUE FROM PROPERTY OWNERS - RELOCATION ASSISTANCE
EXHIBIT A-9
Ref.
Balance, December 31, 2023
A
228,990
$
Decreased by:
Reclassification of Prior Tax Lien Cash Receipt
97,072
Balance, December 31, 2024
A
131,918
$
57
EXHIBIT A-10
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE
Balance
Balance
Dec. 31, 2023
Accruals
Collections
Other
Dec. 31, 2024
Licenses:
Alcoholic Beverage
-
$
228,411
$
228,411
$
-
$
-
$
Other
-
121,720
121,720
-
-
Fees and Permits
-
202,511
202,511
-
-
Fines and Costs Municipal Court
126,194
1,922,444
1,850,799
-
197,839
Interest and Costs on Taxes
-
249,213
249,213
-
-
Interest on Investments and Deposits
-
965,648
965,648
-
-
Wedding Fees
-
43,709
43,709
-
-
City Share of Police Details
-
105,950
105,950
-
-
Public Telephone Commissions
-
91,555
91,555
-
-
Cable Franchise Fees
-
179,421
179,421
-
-
Payment in Lieu of Taxes:
Union Plaza Apartments
-
379,274
379,274
-
-
Palisade Urban Renewal Assoc.
13,745
46,965
60,710
-
-
Holy Rosary
-
30,976
30,976
-
-
Horizon Heights
-
15,211
15,211
-
-
Serv Properties
466
13,440
13,440
-
466
Suede Promotions
-
15,000
15,000
-
-
Monastery Redevelopment Group
-
39,391
39,391
-
-
Uniform Construction Code Fees
-
1,491,559
1,491,559
-
-
Union City Board of Education:
Solid Waste Removal
-
522,904
392,180
-
130,724
47th Street Pool
56,667
136,000
181,334
-
11,333
Lease Recreational Center
-
450,000
450,000
-
-
Off Duty Police Officers
281,182
514,938
796,120
-
-
Police Services - SLEO III's
283,816
686,581
718,548
-
251,849
Police Services - School Resource
447,162
957,032
1,004,561
-
399,633
School Crossing Guards
1,576,326
3,347,321
4,590,053
-
333,594
Rental Income Teamsters Building
-
130,455
120,629
-
9,826
Emergency Medical Services
-
1,752,344
1,752,344
-
-
Reserve for Debt Service
-
29,007
-
29,007
-
Five Year Abatement Program
-
466,470
466,470
-
-
2,785,558
$
15,135,450
$
16,556,737
$
29,007
$
1,335,264
$
A
A-2, A-4
A-2, A-11
A
58
EXHIBIT A-11
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF INTERFUNDS ACTIVITY
Federal and
Animal
General
State Grant
Other
Control
Public
CDA
Total
Capital Fund
Fund
Trust Fund
Trust Fund
Defender
Trust Fund
Ref.
Increased by:
Cash Disbursements
On Behalf of Other Funds
A-4
24,993,402
$
7,807,037
$
14,429,275
$
1,818,153
$
1,083
$
4,125
$
933,729
$
Statutory Excess
A-1
10,412
-
-
-
10,412
-
-
Anticipated in Budget:
Reserve for Debt Service
A-10
29,007
29,007
-
-
-
-
-
Grant Revenue As Adopted
A-2
18,576,929
-
18,576,929
-
-
-
-
Grants Added by 40A:4-87
A-2
3,819,226
-
3,819,226
-
-
-
-
47,428,976
7,836,044
36,825,430
1,818,153
11,495
4,125
933,729
Decreased by:
Appropriations Due to Other Funds:
Grants Appropriated
22,396,155
-
22,396,155
-
-
-
-
Grant Matches
5,251
-
5,251
-
-
-
-
Capital Improvement Fund
1,000,000
1,000,000
-
-
-
-
-
Total Appropriations Due Funds
A-3
23,401,406
1,000,000
22,401,406
-
-
-
-
Grant Receivable Writeoffs
A-1
434,742
-
434,742
-
-
-
-
Reimburse Other Fund
A-14
10,468
-
10,468
-
-
-
-
Cash Receipts
A-4
19,048,988
2,283,954
13,997,532
1,818,153
11,495
4,125
933,729
42,895,604
3,283,954
36,844,148
1,818,153
11,495
4,125
933,729
Net Change in Interfunds
4,533,372
4,552,090
(18,718)
-
-
-
-
Balance, December 31, 2023
Interfunds Receivable
A, A-1
18,718
-
18,718
-
-
-
-
Interfunds Payable
A
4,552,090
4,552,090
-
-
-
-
-
Balance, December 31, 2024
Interfunds Receivable
A, A-1
-
$
-
$
-
$
-
$
-
$
-
$
-
$
Interfunds Payable
A
-
$
-
$
-
$
-
$
-
$
-
$
-
$
59
EXHIBIT A-12
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF DUE FROM STATE OF NEW JERSEY FOR SR. CITIZENS AND VETERANS DEDUCTIONS
Ref.
Increased by:
Senior Citizen Deductions Per Tax Billings
11,000
$
Veteran Deductions Per Tax Billings
13,500
Allowed by Tax Collector
Current Year
250
24,750
$
Decreased by:
Senior Citizen and Veteran Deductions
Disallowed by Tax Collector:
Current Year
1,750
Prior Year
1,832
3,582
State Share of Senior Citizen and Veteran Deductions
A-7
21,168
Less:
Disallowed by Sate Audit of Deductions
A-1
250
Cash Receipts
A-4
22,760
23,010
Net Change in Senior Citizen and Veteran Deductions
(1,842)
Balance, December 31, 2023
Receivable
A
14,092
Balance, December 31, 2024
Receivable
A
12,250
$
SCHEDULE OF TAX TITLE LIENS RECEIVABLE
EXHIBIT A-13
Ref.
Balance, December 31, 2023
A
35,400
$
Increased by:
Transfer from Taxes Receivable
A-7
3,685
39,085
Decreased by:
Cancellations
2,669
Balance, December 31, 2024
A
36,416
$
60
EXHIBIT A-14
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF OTHER RECEIVABLES
Balance
Budget
Cash
Cash
Balance
Dec. 31, 2023
Reimbursements
Interfunds
Disbursements
Receipts
Dec. 31, 2024
Due from:
Due from Vendors
352
$
-
$
-
$
-
$
352
$
-
$
Stop Loss Premiums
584,020
-
-
-
584,020
-
Health Benefit Back Deductions
-
39,419
-
-
-
39,419
Employee Overpayment
-
-
10,468
-
-
10,468
Pension Deduction Shortage
-
-
-
1,060
1,060
-
Board of Ed - Details
560
-
-
-
560
-
Retirement Pay - Police
300
-
-
-
300
-
BOE - Crossing Guard Summer
799,206
-
-
-
799,206
-
Union City Parking Authority
914,580
-
-
1,338,920
-
2,253,500
2,299,018
$
39,419
$
10,468
$
1,339,980
$
1,385,498
$
2,303,387
$
A, A-1
A-3
A-11
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 YEAR ENDED DECEMBER 31, 2024
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
4,207
$
-
$
140
$
140
-
$
-
$
-
$
Municipal Court
Other Expenses
-
7,943
39,869
47,181
-
-
7,312
Public Defender
Other Expenses
-
-
5,650
5,650
-
-
-
Senior Citizens
Salaries and Wages
13,845
-
-
-
-
-
-
Other Expenses
-
-
2,134
3,042
-
-
908
Hispanic/Cultural Affairs
Other Expenses
-
2,025
2,025
2,025
-
-
-
North Hudson Council of Mayors
Other Expenses
50,000
-
44,338
44,338
-
-
-
Municipal Land Use Law (NJS 40:55D-1)
Regional Planning Board
Other Expenses
-
44
5,280
5,166
-
114
-
Continuous Planning Program
Other Expenses
7,142
5,400
22,038
22,038
-
-
-
Celebration of Public Events
Other Expenses
-
1,881
1,996
1,996
-
-
-
Department of Revenue and Finance:
City Clerk's Office
Other Expenses
-
6,969
15,074
12,403
1,504
1,167
-
Treasurer's Office
Salaries and Wages
4,461
-
-
-
-
-
-
Other Expenses
12,772
62,931
73,357
73,357
-
-
-
Collection of Taxes
Other Expenses
-
3,015
3,214
199
3,015
-
-
Central Purchasing
Other Expenses
-
-
31
31
-
-
-
Rent Control Board
Other Expenses
-
-
2,444
2,444
-
-
-
Insurance
General Liability
350
-
350
120,701
-
-
120,351
Workers Compensation
934
25,000
8,824
8,749
-
75
-
Employee Group Health
852,786
2,034,401
2,435,523
1,872,875
87,865
474,783
-
Tax Searches
Other Expenses
125
-
-
-
-
-
-
Elections
Other Expenses
-
2,525
6,535
6,535
-
-
-
Membership NJ League of Municipalities
Other Expenses
-
145
145
145
-
-
-
Annual Audit
Other Expenses
48,500
-
48,500
21,750
26,750
-
-
Printing - All Departments
Other Expenses
-
-
26,770
26,770
-
-
-
Photocopying
Other Expenses
-
1,394
2,438
2,438
-
-
-
Tax Sale Costs
Other Expenses
5,000
-
6,840
6,840
-
-
-
Data Processing
Other Expenses
130,000
-
130,000
130,000
-
-
-
Department of Public Safety:
Director's Office
Salaries and Wages
17,441
-
-
-
-
-
-
Other Expenses
-
10,363
13,433
13,433
-
-
-
Legal Department
Tenant Advocacy
-
-
488
488
-
-
-
Other Expenses
1
189,086
360,310
499,394
-
-
139,084
Police Department
Salaries and Wages
25,000
-
-
(11,416)
-
11,416
-
Overtime
-
-
-
-
-
-
-
Other Expenses
-
170,150
181,645
201,843
-
-
20,198
Traffic Signs and Safety
Other Expenses
35,000
-
35,000
35,000
-
-
-
Emergency Management Services
Other Expenses
-
144
144
144
-
-
-
Emergency Medical Services
Other Expenses
-
20,499
24,272
20,882
295
3,095
-
Balance, December 31, 2023
62
EXHIBIT A-15
Sheet 2 of 2
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF APPROPRIATION RESERVES
Balance
Paid or
Accounts
Balance
Over
Reserved
Encumbered
After Transfers
Charged
Payable
Lapsed
Expended
Balance, December 31, 2023
(A) Operations - Within "CAPS"
Life Hazard Use Fee-Uniform Fire Safety
Other Expenses
172
$
380
$
156
$
156
$
-
$
-
$
-
$
Fleet Maintenance
Other Expenses
-
26,680
123,056
128,971
-
-
5,915
Department of Public Safety:
Board of Health
Other Expenses
-
-
5,525
5,525
-
-
-
Welfare
Relocation Assistance
-
5,015
3,315
(6,400)
-
9,715
-
Department of Public Works:
Director's Office
Other Expenses
-
1,667
4,170
4,138
-
32
-
Street Cleaning
Salaries and Wages
490
-
-
-
-
-
-
Other Expenses
-
549
875
326
549
-
-
Solid Waste Disposal
Other Expenses
-
-
-
108,479
-
-
108,479
Board of Adjustment
Other Expenses
-
6,000
6,000
6,000
-
-
-
Engineering Services
Other Expenses
960
10,700
11,660
236,814
-
-
225,154
Public Assistance
Other Expenses
-
4,218
26,087
24,937
614
536
-
Department of Parks and Public Property:
Parks and Playgrounds
Other Expenses
-
87,632
103,372
46,390
1,824
55,158
-
Public Buildings and Grounds
Salaries and Wages
-
-
-
-
-
-
-
Other Expenses
2,183
59,928
179,067
171,266
4,244
3,557
-
Recreation
Salaries and Wages
-
-
-
-
-
-
-
Other Expenses
-
90,178
104,131
67,041
-
37,090
-
Uniform Construction Code:
State Uniform Construction Code Officials:
Other Expenses
-
61,058
54,154
50,985
3,169
-
-
Fire Inspector
Other Expenses
-
7,763
9,533
4,434
540
4,559
-
Unclassified:
Retirement Benefits
200,000
-
200,000
-
200,000
-
-
Gasoline
-
50,000
45,046
45,046
-
-
-
Telephone
-
50
29,130
29,130
-
-
-
Electricity
-
-
52,119
52,119
-
-
-
Water
-
-
3,893
3,893
-
-
-
Deferred Charges and Statutory Expenditures -
Prior Year Bills - Traffic Lights
-
93,953
93,953
93,953
-
-
-
Statutory Expenditures - Contributions to:
PERS
-
-
-
-
-
-
-
Social Security System
1,913
-
-
-
-
-
-
DCRP
-
-
139
139
-
-
-
Unemployment Insurance
282
206,400
115,462
115,462
-
-
-
Other Operations Excluded from "CAPS"
Free Public Library
-
137,610
137,610
137,610
-
-
-
North Hudson Fire & Rescue
-
1,650,101
1,650,101
1,650,101
-
-
-
Capital Lease - Principal
-
-
-
3,833
-
-
3,833
Total General Appropriations
1,413,564
$
5,043,797
$
6,457,361
$
6,156,929
$
330,369
$
601,297
$
631,234
$
A
A-22
A-4
A-21
A-1
A-23
63
EXHIBIT A-16
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF OTHER INTERGOVERNMENTAL PAYABLES
Decreased by:
Balance
Cash
Cash
Balance
Dec. 31, 2023
Receipts
Disbursements
Dec. 31, 2024
Due to:
Union City Parking Authority
-
$
775,411
$
775,411
$
-
$
State of New Jersey:
Training Fees
7,598
53,503
16,133
44,968
Marriage License Fees
7,325
11,875
3,975
15,225
14,923
$
840,789
$
795,519
$
60,193
$
A
A-4
A-4
A
Increased by:
64
EXHIBIT A-17
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF RESERVE FOR LIQUOR LICENSE RETIREMENT
Ref.
Balance, December 31, 2023
A
58,715
$
Increased by:
Cash Receipts
A-4
13,625
Balance, December 31, 2024
A
72,340
$
SCHEDULE OF PREPAID TAXES
EXHIBIT A-18
Ref.
Balance, December 31, 2023
A
558,171
$
Increased by:
Cash Collections
A-4
510,958
1,069,129
Decreased by:
Applied to 2024 Taxes
A-7
558,171
Balance, December 31, 2024
A
510,958
$
SCHEDULE OF RESERVE FOR RETRO PAY
EXHIBIT A-18a
Ref.
Balance, December 31, 2023
A
-
$
Increased by:
Current Budget Appropriations
A-3
374,000
Balance, December 31, 2024
A
374,000
$
65
EXHIBIT A-19
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF LOCAL SCHOOL DISTRICT TAXES PAYABLE
Ref.
Balance, December 31, 2023
A
-
$
Increased by:
Levy School Year (July to December)
A-1, A-2, A-7
15,418,637
15,418,637
Decreased by:
Cash Disbursements
A-4
15,418,637
Balance, December 31, 2024
A
-
$
SCHEDULE OF COUNTY TAXES PAYABLE
EXHIBIT A-20
Ref.
Balance, December 31, 2023
A
47,756
$
Increased by:
County Taxes
A-7
22,186,210
$
County Open SpaceTaxes
A-7
618,443
A-1
22,804,653
Added Taxes
A-1, A-7
23,573
A-2
22,828,226
22,875,982
Decreased by:
Cash Disbursements
A-4
22,852,409
Balance, December 31, 2024
A
23,573
$
66
EXHIBIT A-21
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF ACCOUNTS PAYABLE
Ref.
Balance, December 31, 2023
A
507,265
$
Increased by:
Charges to Appropriation Reserves
A-15
330,369
837,634
Decreased by:
Cancelled
A-1
43,365
$
Cash Disbursements
A-4
360,151
403,516
Balance, December 31, 2024
A
434,118
$
SCHEDULE OF RESERVE FOR ENCUMBRANCES
EXHIBIT A-22
Current
Federal and
Fund
State Grant Fund
Ref.
Increased by:
Current Year Appropriations
A-3
6,039,530
$
-
$
Grants Appropriated
A-26
-
1,884,826
6,039,530
1,884,826
Decreased by:
Approriation Reserves
A-15
5,043,797
-
Grants Appropriated
A-26
-
676,727
5,043,797
676,727
Net Change in Encumbrances
995,733
1,208,099
Balance, December 31, 2023
A
5,043,797
676,727
Balance, December 31, 2024
A
6,039,530
$
1,884,826
$
67
EXHIBIT A-23
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF DEFERRED CHARGES
Appropriation
Original
Balance
Current Budget
Reserves
Budget
Balance
Amount
Dec. 31, 2023
Overexpended
Overexpended
Emergencies
Appropriations
Dec. 31, 2024
Overexpenditures - Current Fund:
Appropriation Reserves
1,458,476
$
1,458,476
$
-
$
631,234
$
-
$
1,458,476
$
631,234
$
Budget Appropriations
2,577,373
-
2,577,373
-
-
-
2,577,373
Budget Deficit (Transition Year 2023)
886,337
886,337
-
-
-
886,337
-
Emergency Authorizations (40A:4-46)
Budget Deficit (Ord. 2019-14)
6,050,000
1,210,000
-
-
-
1,210,000
-
Budget Appropriations (Reso 12/28-3)
6,819,280
6,819,280
-
-
-
6,819,280
-
COVID Expenditures - Health Insurance & Solid Waste Removal
2020 (June 23, 2020)
5,476,657
3,283,600
-
-
-
1,096,000
2,187,600
COVID-19 Revenue Loss
1,726,143
1,035,500
-
-
-
345,230
690,270
Special Emergency Authorizations (NJSA 40A:4-53.a)
Preparation of Tax Map
2020 (April 16, 2020)
194,500
77,800
-
-
-
38,900
38,900
Revaluation
2022
1,000,000
800,000
-
-
-
200,000
600,000
Special Emergency Authorizations (NJSA 40A:4-53.h)
Contractually Required Severance Liabilities
2018 (Ord. 2018-38)
733,555
119,200
-
-
-
119,200
-
2019 (Ord. 2018-37)
1,012,741
167,000
-
-
-
167,000
-
2020 (Reso. June 23, 2020)
673,829
269,000
-
-
-
134,770
134,230
2021 (Reso. June 30, 2021)
1,093,199
597,099
-
-
-
281,700
315,399
2022
1,292,597
1,034,077
-
-
-
258,527
775,550
2023
995,000
995,000
-
-
-
199,000
796,000
TY2023 (Reso. 2023-80)
779,411
779,411
-
-
-
155,883
623,528
CY 2024 (Ord. 2024-29)
1,084,279
-
-
-
1,084,279
-
1,084,279
19,531,780
$
2,577,373
$
631,234
$
1,084,279
$
13,370,303
$
10,454,363
$
A
A-3
A-15
A-3
A-3
A
Increased by:
68
EXHIBIT A-24
CITY OF UNION CITY
CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
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
Dec. 31, 2023
Issued
Refunded
Appropriation
Dec. 31, 2024
Series 2023B-2 (Federally Taxable) (HCIA Local Unit Loan Program)
Budget Deficit State Loan:
2019-14
06/24/2019
6,050,000
$
07/25/2023
07/24/2024
6.250%
1,210,000
$
-
$
-
$
1,210,000
$
-
$
Series 2023A (Tax Exempt) (HCIA Local Unit Loan Program)
COVID Emergency Authorizations of June 23, 2020
Health Insurance
*
4/29/2021
4,219,789
04/06/2023
04/05/2024
4.250%
2,530,004
-
1,685,600
844,404
-
Solid Waste
*
4/29/2021
1,255,611
04/06/2023
04/05/2024
4.250%
753,996
-
502,400
251,596
-
Series 2024A (Tax Exempt) (HCIA Local Unit Loan Program)
COVID Emergency Authorizations of June 23, 2020
Health Insurance
*
4/29/2021
4,219,789
03/26/2024
03/25/2025
4.250%
-
1,685,600
-
-
1,685,600
Solid Waste
*
4/29/2021
1,255,611
03/26/2024
03/25/2025
4.250%
-
502,400
-
-
502,400
Special Emergency Notes, Series A of 2023 (Federally Taxable)
Contractually Required Severance Liabilities
2018-37
12/12/2014
1,012,741
01/25/2023
01/23/2024
4.100%
167,000
-
-
167,000
-
2018-38
10/10/2018
1,732,769
01/25/2023
01/23/2024
4.100%
380,000
-
-
380,000
-
Special Emergency Notes, Series A of 2024 (Federally Taxable)
Preparation of Tax Map
*
4/29/2021
155,000
03/13/2024
03/12/2025
4.900%
-
38,900
-
-
38,900
COVID-19 Revenue Loss
*
4/29/2021
1,726,000
03/13/2024
03/12/2025
4.900%
-
690,270
-
-
690,270
*
4/29/2021
539,000
03/13/2024
03/12/2025
4.900%
-
238,830
-
-
238,830
Series B of 2023 (Federally Taxable)
Preparation of Tax Map
*
4/29/2021
155,000
03/22/2023
03/14/2024
4.300%
93,000
-
38,900
54,100
-
COVID-19 Revenue Loss
*
4/29/2021
1,726,000
03/22/2023
03/14/2024
4.300%
1,035,600
-
690,270
345,330
-
*
4/29/2021
539,000
03/22/2023
03/14/2024
4.300%
323,400
-
238,830
84,570
-
6,493,000
$
3,156,000
$
3,156,000
$
3,337,000
$
3,156,000
$
Ref.
A
A-4
A
Series A of 2023
547,000
$
Series 2024A
2,188,000
$
Series B of 2023
1,452,000
Series A of 2024
968,000
Series 2023A
3,284,000
3,156,000
Series 2023B-2
1,210,000
6,493,000
$
Original
Decreased by:
69
EXHIBIT A-25
Sheet 1 of 3
CITY OF UNION CITY
SCHEDULE OF GRANTS RECEIVABLE
Balance
Transfer from
Balance
Budget
Dec. 31,
As
As Added
Unappropriated
Reallocated /
Dec. 31,
Year
2023
Adopted
by 40A:4-87
Received
Reserve
Cancelled
2024
FEDERAL GRANTS
U.S. Department of Health and Human Services:
Drug Free Community
TY2023
95,528
$
-
$
-
$
95,528
$
-
$
-
$
-
$
2024
-
-
125,000
30,555
-
-
94,445
Passed through NJ Department of Health
Strengthening Local Public Health Capacity
TY2023
406,046
-
-
338,500
-
67,546
-
2023
129,835
-
-
100,390
-
29,445
-
2024
-
74,664
-
10,691
-
-
63,973
U.S. Department of Justice:
Bulletproof Vest Partnership Program
2021
16,660
-
-
16,660
-
-
-
2018
9,476
-
-
9,476
-
-
-
2020
11,522
-
-
11,522
-
-
-
2023
7,784
-
-
3,184
-
-
4,600
TY23
42,297
-
-
-
-
-
42,297
2024
-
-
32,607
-
-
-
32,607
COPS Hiring Program
2023
3,654,423
-
-
529,492
-
-
3,124,931
COPS Technology & Equipment
2023
836,473
-
-
357,140
-
-
479,333
TY23
1,200,000
-
-
943,121
-
-
256,879
Edward Byrne Memorial Justice Assistance Grant (JAG)
2022
24,643
-
-
24,643
-
-
-
TY23
28,718
-
-
-
-
-
28,718
2024
-
-
26,567
-
-
-
26,567
2024
-
-
32,408
-
-
-
32,408
National Incident-Based Reporting System (NIBRS) Compliance Grant
2024
-
-
75,000
-
-
-
75,000
Passed through NJ Department of Law and Public Safety:
Pedestrian Safety
TY23
35,000
-
-
35,000
-
-
-
U.S. Department of Agriculture:
Pass through Entity: State of NJ Department of Health
Spotted Lanternfly Treatment Program
TY23
15,000
-
-
-
-
-
15,000
2024
-
20,000
-
-
-
-
20,000
U.S. Department of Transportation:
Passed through NJ Department of Transportation:
Congressional Grant - Central Ave Corridor Improvements
TY23
1,103,850
-
-
-
-
-
1,103,850
Passed through NJ Department of Law and Public Safety:
National Highway Traffic Safety Association - Click it or Ticket
2024
-
10,500
-
9,765
-
735
-
Sustained Traffic Enforcement Program Grant (STEP) (Massachusetts)
2024
-
-
52,000
-
-
-
52,000
Body Worn Camera Grant
2022
401,957
-
-
210,894
-
-
191,063
Distracted Driving Crackdown Grant
2024
-
12,250
-
-
-
12,250
-
Automated License Plate Reader Program
TY23
222,000
-
-
221,500
-
500
-
Drive Sober or Get Pulled Over
TY23
8,750
-
-
7,070
-
1,680
-
Energy Efficiency & Conservation Block Grant Program (EECBG)
2024
-
123,130
-
-
-
-
123,130
Total Federal
8,249,962
$
240,544
$
343,582
$
2,955,131
$
-
$
112,156
$
5,766,801
$
FEDERAL AND STATE GRANTS FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
Anticipated in Budget
70
EXHIBIT A-25
Sheet 2 of 3
CITY OF UNION CITY
SCHEDULE OF GRANTS RECEIVABLE
Balance
Transfer from
Balance
Budget
Dec. 31,
As
As Added
Unappropriated
Reallocated /
Dec. 31,
Year
2023
Adopted
by 40A:4-87
Received
Reserve
Cancelled
2024
FEDERAL AND STATE GRANTS FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
Anticipated in Budget
STATE GRANTS
NJ Department of Transportation Transportation Trust Fund:
2021 Various Streets - FY 21 Municipal Aid
2021
720,000
$
-
$
-
$
292,693
$
-
$
427,307
$
-
$
2021 Various Streets - FY 19 Urban Aid
2021
195,396
-
-
195,396
-
-
-
Kerrigan Avenue - LAIF Discretionary Funds
2018
709,126
-
-
-
-
438,051
271,075
Hudson Avenue
2024
-
4,000,000
-
-
-
-
4,000,000
Central Ave Corridor Improvements - Local Aid Infrastructure
2022
900,000
-
-
900,000
-
-
-
13th, 42nd and 47th Streets - Municipal Aid Program
2022
215,544
-
-
215,544
-
-
-
13th, 37th and 38th Streets - Municipal Aid Program
2023
587,212
-
-
266,950
-
320,262
-
Local Transportation Projects Fund
13th, 37th and 38th Street Improvements
TY23
299,000
-
-
-
-
299,000
-
13th, 42nd and 47th Street Improvements
TY23
443,000
-
-
383,862
-
59,138
-
18th, 19th and 16th Street Improvements
TY23
860,394
-
-
645,295
-
-
215,099
36th - 39th St Bergenline to JFK
2024
-
4,500,000
-
-
-
-
4,500,000
Local Aid Infrastructure Fund (LAIF)
Road Improvement 37th & 38th
2024
-
1,700,000
-
1,007,262
-
-
692,738
NJ Department of Law and Public Safety:
Body Armor Fund
2024
-
10,930
-
-
10,930
-
-
2024
-
-
13,119
13,119
-
-
-
NJ Department of Community Affairs:
Urban Enterprize Zone (UEZ) Assistance Fund
2024
-
1,774,933
1,811,223
1,774,933
-
-
1,811,223
41st Street Park Grant
2023
850,000
-
-
-
-
-
850,000
Local Recreation Gant - Pool Improvements
TY23
97,000
-
-
86,300
-
10,700
-
DCA Social Services Grant
2024
-
5,000,000
-
3,750,000
-
-
1,250,000
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
2024
-
-
886,000
-
-
-
886,000
Green Acres - 4100 Palisade Ave. - Urban Parks
2022
500,000
-
-
-
-
-
500,000
2023
225,000
-
-
-
-
-
225,000
Clean Communities Grant
2024
-
118,532
-
118,532
-
-
-
Electric Vehicle DC Fast Charger Community Grant
It Pay$ to Plug
2023
150,000
-
-
-
-
-
150,000
TY23
24,000
-
-
-
-
24,000
-
TY23
24,000
-
-
-
-
-
24,000
TY23
24,000
-
-
-
-
-
24,000
2024
-
24,000
-
-
-
-
24,000
NJ Department of Environmental Protection
Clean Energy Electric Vehicle Tourism Grant
2023
42,000
-
-
11,583
-
-
30,417
Recycling Tonnage Grant
2024
-
29,987
-
29,987
-
-
-
71
EXHIBIT A-25
Sheet 3 of 3
CITY OF UNION CITY
SCHEDULE OF GRANTS RECEIVABLE
Balance
Transfer from
Balance
Budget
Dec. 31,
As
As Added
Unappropriated
Reallocated /
Dec. 31,
Year
2023
Adopted
by 40A:4-87
Received
Reserve
Cancelled
2024
FEDERAL AND STATE GRANTS FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
Anticipated in Budget
STATE GRANTS (continued)
NJ Administrative Office of the Courts:
Alcohol Education
2024
-
$
3,065
$
-
$
3,065
$
-
$
-
$
-
$
NJ Department of Treasury:
Passed through County of Hudson:
Municipal Alliance on Alcoholism and Drug Abuse
TY23
21,005
-
-
21,005
-
-
-
2024
-
21,005
-
-
-
-
21,005
Youth Leadership Municipal Alliance
TY23
7,616
-
-
7,616
-
-
-
Total State
8,569,293
17,182,452
2,710,342
9,723,142
10,930
1,578,458
17,149,557
COUNTY GRANTS
County of Hudson:
History Partnership Program
2024
-
9,900
-
8,018
-
-
1,882
Local Arts Program
2024
-
5,874
-
4,689
-
-
1,185
Open Space Trust Fund:
Washington Park Soccer Field Improvements
TY23
201,000
-
-
133,613
-
67,387
-
4100 Palisade Avenue Acquisition
TY23
147,225
-
-
-
-
(67,387)
214,612
4100 Palisade Ave
2022
271,525
-
-
-
-
-
271,525
4100 Palisade Ave Soccer Field
2024
-
-
216,000
-
-
-
216,000
Liberty Place Playground
2024
-
-
500,000
-
-
-
500,000
Total County
619,750
15,774
716,000
146,320
-
-
1,205,204
OTHER PRIVATE GRANTS
National Opioid Settlement
2024
-
970,110
-
945,706
24,404
-
-
2024
-
-
49,302
49,302
-
-
-
NJ Association of County and City Health Officials:
Enhancing Local Public Health Infrastructure Grant
TY23
648,175
-
-
133,892
-
-
514,283
2023
451,062
-
-
451,062
-
-
-
2024
-
168,049
-
26,530
-
-
141,519
Private Total
1,099,237
1,138,159
49,302
1,606,492
24,404
-
655,802
18,538,242
$
18,576,929
$
3,819,226
$
14,431,085
$
35,334
$
1,690,614
$
24,777,364
$
Ref.
A
A-27
A-27
A-4
A-28
A
72
EXHIBIT A-26
Sheet 1 of 7
CITY OF UNION CITY
FEDERAL AND STATE GRANTS FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
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
TY2023
21,412
$
74,750
$
-
$
-
$
95,109
$
-
$
1,053
$
-
$
2024
-
-
-
125,000
29,921
-
74,800
20,279
Drug Free Community - Local Match
TY2023
140,625
-
-
-
140,625
-
-
-
Passed Through NJ Department of Health
Strengthening Local Public Health Capacity
2022
2,584
-
-
-
-
2,584
-
-
2023
26,672
-
-
-
-
26,672
-
-
TY2023
112,504
172,293
-
-
217,251
67,546
-
-
2024
-
-
-
74,664
23,319
-
8,280
43,065
U.S. Department of Justice:
COPS Hiring Program
2023
3,584,704
-
-
-
667,132
-
-
2,917,572
COPS Technology & Equipment
2023
676,851
44,162
-
-
225,750
-
-
495,263
TY2023
1,200,000
-
-
-
949,506
-
198,559
51,935
Bulletproof Vest Partnership Program
TY2023
42,297
-
-
-
-
-
19,474
22,823
2023
4,155
3,629
-
-
3,184
-
4,600
-
2024
-
-
-
32,607
-
-
-
32,607
Passed through NJ Department of Law and Public Safety:
Pedestrian Safety Grant
TY2023
35,000
-
-
-
35,000
-
-
-
Passed through County of Hudson:
Byrne Justice Assistance Grant
TY2023
28,718
-
-
-
28,441
-
-
277
Byrne Justice Assistance Grant
2024
-
-
-
26,567
-
-
-
26,567
2024
-
-
-
32,408
-
-
-
32,408
National Incident-Based Reporting System (NIBRS) Compliance Grant
2024
-
-
-
75,000
-
-
-
75,000
Balance, December 31, 2024
Balance, December 31, 2023
Increased by:
Decreased by:
73
EXHIBIT A-26
Sheet 2 of 7
CITY OF UNION CITY
FEDERAL AND STATE GRANTS FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF RESERVE FOR APPROPRIATED GRANTS
Budget
Current Year
Paid or
Reallocated /
Year
Reserved
Encumbered
City Match
Awards
Charged
Cancelled
Encumbered
Reserved
Balance, December 31, 2024
Balance, December 31, 2023
Increased by:
Decreased by:
FEDERAL GRANTS (continued)
U.S. Department of Agriculture:
Pass through Entity: State of NJ Department of Health
Spotted Lanternfly Treatment Program
TY2023
15,000
$
-
$
-
$
-
$
-
$
-
$
-
$
15,000
$
2024
-
-
-
20,000
-
-
-
20,000
U.S. Department of Treasury:
ARP-State and Local Fiscal Recovery Funds
2022
2,500,700
-
-
-
2,500,700
-
-
-
U.S. Department of Transportation:
Body Worn Cameras Grant
2022
185,898
23,794
-
-
18,630
-
23,794
167,268
Passed through NJ Department of Law and Public Safety
National Highway Traffic Safety Association - Restraints Program Management
Click it or Ticket
2024
-
-
-
10,500
9,765
735
-
-
Sustained Traffic Enforcement Program Grant (STEP) (Massachusetts)
2024
-
-
-
52,000
-
-
-
52,000
Distracted Driving Crackdown Grant
2024
-
-
-
12,250
-
12,250
-
-
Drive Sober or Get Pulled Over Holiday Crackdown
TY2023
7,350
-
-
-
5,670
1,680
-
-
Automated License Plate Reader Program
TY2023
500
221,500
-
-
221,500
500
-
-
Energy Efficiency & Conservation Block Grant Program (EECBG)
2024
-
-
-
123,130
-
-
40,787
82,343
Federal Total
8,584,970
540,128
-
584,126
5,171,503
111,967
371,347
4,054,407
74
EXHIBIT A-26
Sheet 3 of 7
CITY OF UNION CITY
FEDERAL AND STATE GRANTS FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF RESERVE FOR APPROPRIATED GRANTS
Budget
Current Year
Paid or
Reallocated /
Year
Reserved
Encumbered
City Match
Awards
Charged
Cancelled
Encumbered
Reserved
Balance, December 31, 2024
Balance, December 31, 2023
Increased by:
Decreased by:
STATE GRANTS
NJ Department of Transportation
Transportation Trust Fund:
Various Streets 2021 - FY 21 Municipal Aid
2021
443,976
$
-
$
-
$
-
$
16,670
$
427,306
$
-
$
-
$
Hudson Avenue
2024
-
-
-
4,000,000
-
-
-
4,000,000
NJ Department of Transportation
Transportation Trust Fund:
18th, 19th & 16th St Improvements - FY24 Municipal Aid
TY2023
860,394
-
-
-
487,027
-
373,367
-
Central Ave Corridor Improvements - Local Aid Infrastructure
TY2023
1,033,227
-
-
-
(70,623)
-
-
1,103,850
13th, 42nd and 47th Streets - Municipal Aid Program
TY2023
443,000
-
-
-
383,863
59,137
-
-
13th, 37th and 38th Streets - Municipal Aid Program
2023
378,492
-
-
-
58,230
320,262
-
-
TY2023
299,000
-
-
-
-
299,000
-
-
36th - 39th St Bergenline to JFK
2024
-
-
-
4,500,000
-
-
-
4,500,000
Local Aid Infrastructure Fund (LAIF)
Road Improvement 37th & 38th
2024
-
-
-
1,700,000
898,636
-
654,117
147,247
NJ Department of Law and Public Safety:
Body Armor Fund
2023
3,160
3,629
-
-
2,856
-
3,933
-
2024
-
-
-
10,930
-
-
10,930
-
2024
-
-
-
13,119
-
-
-
13,119
75
EXHIBIT A-26
Sheet 4 of 7
CITY OF UNION CITY
FEDERAL AND STATE GRANTS FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF RESERVE FOR APPROPRIATED GRANTS
Budget
Current Year
Paid or
Reallocated /
Year
Reserved
Encumbered
City Match
Awards
Charged
Cancelled
Encumbered
Reserved
Balance, December 31, 2024
Balance, December 31, 2023
Increased by:
Decreased by:
STATE GRANTS (continued)
NJ Department of Environmental Protection:
Clean Communities
2024
-
$
-
$
-
$
118,532
$
-
$
-
$
-
$
118,532
$
TY2023
60,198
9,548
-
-
63,984
-
-
5,762
2022
-
881
-
-
881
-
-
-
Electric Vehicle DC Fast Charger Community Grant
It Pay$ to Plug
2023
150,000
-
-
-
-
-
-
150,000
TY2023
24,000
-
-
-
-
24,000
-
-
TY2023
24,000
-
-
-
-
-
-
24,000
TY2023
24,000
-
-
-
-
-
-
24,000
2024
-
-
-
24,000
21,146
-
-
2,854
Clean Energy Electric Vehicle Tourism Grant
2023
7,610
-
-
-
7,610
-
-
-
NJ Division of Highway Traffic Safety:
Drunk Driving Enforcement Fund
2018
13,933
-
-
-
-
-
-
13,933
2017
2,653
-
-
-
-
-
452
2,201
Green Acres - Reservoir Purchase
2018
919,382
-
-
-
267,527
-
-
651,855
Green Acres - 44th St Acquisition
2020
675,000
-
-
-
-
-
-
675,000
Green Acres - 4100 Palisade Ave.
2022
984,800
-
-
-
27,623
-
18,797
938,380
2023
225,000
-
-
-
-
-
-
225,000
2024
-
-
-
886,000
-
-
-
886,000
Green Acres - 4100 Palisade Ave. - Urban Parks
2022
500,000
-
-
-
-
-
-
500,000
NJ Division of Highway Traffic Safety:
Recycling Tonnage Grant
2024
-
-
-
29,987
-
-
-
29,987
2023
91,907
2,275
-
-
29,396
-
4,218
60,568
76
EXHIBIT A-26
Sheet 5 of 7
CITY OF UNION CITY
FEDERAL AND STATE GRANTS FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF RESERVE FOR APPROPRIATED GRANTS
Budget
Current Year
Paid or
Reallocated /
Year
Reserved
Encumbered
City Match
Awards
Charged
Cancelled
Encumbered
Reserved
Balance, December 31, 2024
Balance, December 31, 2023
Increased by:
Decreased by:
STATE GRANTS (continued)
NJ Department of Treasury:
Community Energy Plan Grant
2023
2,700
$
15,500
$
-
$
-
$
14,700
$
3,500
$
-
$
-
$
Passed through County of Hudson:
Municipal Alliance
Program Funds
TY2023
5,176
3,749
-
-
8,925
-
-
-
Matching Funds
TY2023
-
2,251
-
-
2,251
-
-
-
Youth Leadership Municipal Alliance
TY2023
-
7,616
-
-
7,616
-
-
-
Program Funds
2024
-
-
-
21,005
14,905
-
6,000
100
Matching Funds
2024
-
-
5,251
-
2,251
-
3,000
-
NJ Administrative Office of the Courts:
Alcohol Education
2014
750
561
-
-
1,311
-
-
-
2014
3,368
-
-
-
250
-
-
3,118
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
TY2023
9,605
-
-
-
-
-
-
9,605
2024
-
-
-
3,065
-
-
-
3,065
77
EXHIBIT A-26
Sheet 6 of 7
CITY OF UNION CITY
FEDERAL AND STATE GRANTS FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF RESERVE FOR APPROPRIATED GRANTS
Budget
Current Year
Paid or
Reallocated /
Year
Reserved
Encumbered
City Match
Awards
Charged
Cancelled
Encumbered
Reserved
Balance, December 31, 2024
Balance, December 31, 2023
Increased by:
Decreased by:
STATE GRANTS (continued)
NJ Department of Community Affairs:
41st Street Park Grant
2023
1,700,000
$
-
$
-
$
-
$
-
$
-
$
-
$
1,700,000
$
DCA Social Services Grant
2024
-
-
-
5,000,000
4,777,522
-
158,419
64,059
DCA Local Recreation Grant-Pool Improvements
TY23
97,000
-
-
-
86,300
10,700
-
-
Lead Grant Assistance Program
TY23
87,700
-
-
-
36,428
-
-
51,272
Urban Enterprize Zone (UEZ) Assistance Fund
TY2023
-
87,689
-
-
87,689
-
-
-
2024
-
-
-
1,774,933
1,510,109
-
264,824
-
2024
-
-
-
1,811,223
-
-
-
1,811,223
State Total
9,099,787
133,699
5,251
19,892,794
8,745,083
1,143,905
1,498,057
17,744,486
HUDSON COUNTY GRANTS
History Partnership Program
2024
-
-
-
9,900
-
-
8,338
1,562
Local Arts Program
2024
-
-
-
5,874
5,874
-
-
-
Open Space Trust Fund
Washington Park Soccer Field Improvements
TY2023
67,387
-
-
-
-
67,387
-
-
4100 Palisade Ave.
TY2023
147,225
-
-
-
-
(67,387)
-
214,612
2022
271,525
-
-
-
-
-
-
271,525
4100 Palisade Ave Soccer Field
2024
-
-
-
216,000
-
-
-
216,000
Liberty Place Playground
2024
-
-
-
500,000
-
-
-
500,000
County Total
486,137
-
-
731,774
5,874
-
8,338
1,203,699
78
EXHIBIT A-26
Sheet 7 of 7
CITY OF UNION CITY
FEDERAL AND STATE GRANTS FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF RESERVE FOR APPROPRIATED GRANTS
Budget
Current Year
Paid or
Reallocated /
Year
Reserved
Encumbered
City Match
Awards
Charged
Cancelled
Encumbered
Reserved
Balance, December 31, 2024
Balance, December 31, 2023
Increased by:
Decreased by:
OTHER PRIVATE GRANTS
National Opioid Settlement
2023
346,324
$
-
$
-
$
-
$
-
$
-
$
-
$
346,324
$
TY223
163,302
-
-
-
-
-
-
163,302
2024
-
-
-
970,110
-
-
-
970,110
2024
-
-
-
49,302
-
-
-
49,302
NJ Association of County and City Health Officials:
Enhancing Local Public Health Infrastructure Grant
TY223
581,829
-
-
-
96,245
-
7,084
478,500
2023
366,981
2,900
-
-
369,881
-
-
-
2024
-
-
-
168,049
40,689
-
-
127,360
Private Total
1,458,436
2,900
-
1,187,461
506,815
-
7,084
2,134,898
19,629,330
$
676,727
$
5,251
$
22,396,155
$
14,429,275
$
1,255,872
$
1,884,826
$
25,137,490
$
Ref.
A
A-22
A-27
A-27
A-27
A-25
A-22
A
79
EXHIBIT A-27
CITY OF UNION CITY
FEDERAL AND STATE GRANTS FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF INTERFUNDS
Current
Fund
Ref.
Increased by:
Appropriated in Budget
Grant Awards
A-26
22,396,155
$
City Match
A-26
5,251
Cancelled Receivables
A-25
434,742
Cash Disbursements
A-4
14,008,000
36,844,148
Decreased by:
Anticipated Grant Revenues
Adopted Budget
A-25
18,576,929
Added by Chapter 159
A-25
3,819,226
Grant Expenditures Paid by Current Fund
A-26
14,429,275
36,825,430
Net Change in Interfunds
18,718
Balance, December 31, 2023
Interfunds Payable
A
18,718
Balance, December 31, 2024
A
-
$
80
EXHIBIT A-28
CITY OF UNION CITY
FEDERAL AND STATE GRANTS FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF RESERVE FOR UNAPPROPRIATED GRANTS
Decreased for
Balance
Cash
Revenue
Balance
Dec. 31, 2023
Receipts
Anticipated
Dec. 31, 2024
STATE GRANTS:
NJ Department of Law and Public Safety:
Body Armor Grant
10,930
$
-
$
10,930
$
-
$
PRIVATE GRANTS:
National Opioid Settlement
24,404
42,709
24,404
42,709
35,334
$
42,709
$
35,334
$
42,709
$
A
A-4
A-25
A
81
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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 YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF CASH AND CASH EQUIVALENTS - ANIMAL CONTROL TRUST FUND
Ref.
Balance, December 31, 2023
B
10,194
$
Increased by:
Sale of Dog Licenses - State
B-2
1,034
$
Sale of Dog Licenses - City
B-3
4,039
Sale of Dog Licenses - Late Fees
B-3
890
Other Municipal Fees
B-3
52
6,015
16,209
Decreased by:
Due to Current Fund
B-4
11,495
Balance, December 31, 2024
B
4,714
$
SCHEDULE OF DUE TO STATE OF NEW JERSEY - ANIMAL CONTROL TRUST FUND
EXHIBIT B-2
Ref.
Balance, December 31, 2023
B
-
$
Increased by:
State Fees Collected:
Pilot Clinic Funds
75
$
Registration Fees
374
Population Control Fees
585
B-1
1,034
1,034
Decreased by:
Transmitted to State
B-4
1,029
Balance, December 31, 2024
B
5
$
82
EXHIBIT B-3
CITY OF UNION CITY
TRUST FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF RESERVE FOR ANIMAL CONTROL TRUST FUND EXPENDITURES
Ref.
Balance, December 31, 2023
B
10,155
$
Increased by:
Cash Receipts - Dog Licenses
B-1
4,039
$
Cash Receipts - Late Fees
B-1
890
Miscellaneous
B-1
52
Prior Year Prepaid
B
39
5,020
15,175
Decreased by:
Expenditures
B-4
54
Statutory Excess
B-4
10,412
10,466
Balance, December 31, 2024
B
4,709
$
Maximum Allowable Reserve
License Fees Collected:
TY2023
435
$
FY2023
4,274
4,709
$
83
CITY OF UNION CITY
EXHIBIT B-4
TRUST FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF INTERFUNDS - ANIMAL CONTROL FUND
Due To / From
Current Fund
Ref.
Increased by:
Transfer to Clear Interfund
B-1
11,495
Decreased by:
Cash Disbursed by Current Fund for:
Due to State
B-2
1,029
Expenditures from Reserve
B-3
54
Statutory Excess
B-3
10,412
11,495
Net Change in Interfunds
-
Balance, December 31, 2023
B
-
Balance, December 31, 2024
B
-
$
SCHEDULE OF CASH AND CASH EQUIVALENTS - OTHER TRUST FUND
EXHIBIT B-5
Ref.
Balance, December 31, 2023
B
11,521,221
$
Increased by Cash Receipts:
Other Trust Fund Reserves
B-8
9,663,623
21,184,844
Decreased by Cash Disbursements:
Due to Current Fund
B-7
1,818,153
$
Other Trust Fund Reserves
B-8
7,550,113
9,368,266
Balance, December 31, 2024
B
11,816,578
$
84
CITY OF UNION CITY
EXHIBIT B-6
TRUST FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF ACCOUNT RECEIVABLES - OTHER TRUST FUND
Due from
Contractors
Ref.
Balance, December 31, 2023
B
395,511
$
Increased by:
Other Trust Fund Reserves
B-8
58,936
Balance, December 31, 2024
B
454,447
$
SCHEDULE OF INTERFUNDS - OTHER TRUST FUND
EXHIBIT B-7
Due To / From
Current Fund
Ref.
Increased by:
Cash Disbursements
B-5
1,818,153
$
Decreased by:
Expenditures Paid by Current Fund
B-8
1,818,153
Net Change in Interfunds
-
Balance, December 31, 2023
B
-
Balance, December 31, 2024
B
-
$
85
CITY OF UNION CITY
EXHIBIT B-8
TRUST FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF OTHER TRUST FUND RESERVES
Reserved
Encumbered
Increase
Decrease
Encumbered
Reserved
Recreation - Soccer - Umpire Fees
40
$
-
$
29,898
$
29,783
$
-
$
155
$
Escrow Deposits
5,135,017
-
2,144,399
1,406,560
-
5,872,856
Batterred Wives Fund
-
-
200
-
-
200
P.O.A.A
155,880
-
63,928
76,352
11,045
132,411
Disposal of Forfeited Property
17,184
-
-
-
-
17,184
Police Special Detail
(669,935)
-
1,645,192
1,818,153
-
(842,896)
Police Donations
1,059
-
-
-
-
1,059
Outside Lien Holders
261,109
445,697
2,795,607
2,692,359
713,113
96,941
Ambulance Donations
300
-
-
-
-
300
DARE Donations
1,845
-
-
-
-
1,845
Feral Cat Program Donations
431
-
-
-
-
431
State Unemployment Insurance
-
20,183
95,921
20,335
50,377
45,392
Fire Prevention Penalties Trust
2,998
-
567,944
406,145
-
164,797
Tree Planting Program
840
-
-
-
-
840
Fire Victims Assistance
1,430
-
-
1,430
-
-
Recreation - Senior Citizens Trips
1,428
-
12,663
11,368
-
2,723
Insurance Proceeds
61,632
-
-
61,632
-
-
HCLET - Forfeited Property
56,233
2,245
14,829
-
37,202
36,105
Premium of Tax Lien Sale
3,095,900
306,400
1,201,800
1,543,000
456,800
2,604,300
Recreation - Swimming Pool
1,418
1,750
6,565
8,213
-
1,520
Storm Recovery Trust
370
-
-
-
-
370
DEA - Federal Equitable Sharing
220
-
11
-
-
231
Recreation - Soccer Program
1,528
-
2,330
3,858
-
-
Recreation - Softball
230
-
-
-
-
230
Recreation - Baseball
-
1,830
35
-
-
1,865
Recreation - Basketball
70
955
70
-
-
1,095
Recreation - Volleyball
71
3,154
483
-
-
3,708
Recreation - Flag Football
5
-
-
-
-
5
Recreation - Football
12,291
-
-
-
-
12,291
Recreation - T-Ball/Baseball/Softball
20,621
-
-
-
-
20,621
COAH
2,911,646
-
1,038,136
1,180,084
-
2,769,698
Elevator Inspections
37,316
-
102,548
108,994
-
30,870
Prisoners' Property
25,341
-
-
-
-
25,341
11,134,518
$
782,214
$
9,722,559
$
9,368,266
$
1,268,537
$
11,002,488
$
B
B-9
B-9
B
Cash Activity
B-5
9,663,623
$
7,550,113
$
Due from Contractor
B-6
58,936
-
Interfund - Current Fund
B-7
-
1,818,153
9,722,559
$
9,368,266
$
Balance, December 31, 2024
Balance, December 31, 2023
86
CITY OF UNION CITY
EXHIBIT B-9
TRUST FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF RESERVE FOR ENCUMBRANCES PAYABLE - OTHER TRUST FUND
Ref.
Balance, December 31, 2023
B
782,214
$
Increased by:
Reserve for Other Trust Fund Activity
B-8
1,268,537
2,050,751
Decreased by:
Add Back Prior Year Encumbrances
B-8
782,214
Balance, December 31, 2024
B
1,268,537
$
SCHEDULE OF CASH AND CASH EQUIVALENTS - CDA FUND
EXHIBIT B-10
Ref.
Balance, December 31, 2023
B
6,815
$
Increased by Cash Receipts:
Reimbursements
B-13
5,665
$
Due from HUD CDBG
B-11
915,874
Reserve for Program Income
B-12
15,625
937,164
943,979
Decreased by Cash Disbursements:
Due to Current Fund
B-14
933,729
Balance, December 31, 2024
B
10,250
$
87
CITY OF UNION CITY
EXHIBIT B-11
TRUST FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF DUE FROM HUD COMMUNITY DEVELOPMENT BLOCK GRANT - CDA FUND
Ref.
Balance, December 31, 2023
B
2,094,616
$
Increased by:
New Grant Authorization
B-13
1,131,991
3,226,607
Decreased by:
Cash Receipts
B-10
915,874
Balance, December 31, 2024
B
2,310,733
$
SCHEDULE OF RESERVE FOR PROGRAM INCOME - CDA FUND
EXHIBIT B-12
Ref.
Balance, December 31, 2023
-
$
Increased by:
Cash Receipts
B-10
15,625
15,625
Decreased by:
Reserve for Expenditures
B-13
15,625
Balance, December 31, 2024
-
$
88
CITY OF UNION CITY
EXHIBIT B-13
TRUST FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF RESERVE FOR COMMUNITY DEVELOPMENT BLOCK GRANT - CDA FUND
Ref.
Balance, December 31, 2023
B
1,490,127
$
Increased by:
New Grant Authorization
B-11
1,131,991
$
Reimbursement
B-10
5,665
Reserve for Program Income
B-12
15,625
Encumbrances
B
611,304
1,764,585
3,254,712
Decreased by:
Expenditures Paid by Current Fund
B-14
933,729
Encumbrances
B
1,214,206
2,147,935
Balance, December 31, 2024
B
1,106,777
$
SCHEDULE OF INTERFUNDS - CDA FUND
EXHIBIT B-14
Due To / From
Current Fund
Ref.
Decreased by:
Cash Disbursements
B-10
933,729
Increased by:
Expenditures Paid by Current Fund
B-13
933,729
Net Change in Interfunds
-
Balance, December 31, 2023
-
Balance, December 31, 2024
B
-
$
89
CITY OF UNION CITY
EXHIBIT B-15
TRUST FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF CASH AND CASH EQUIVALENTS - PUBLIC DEFENDER TRUST FUND
Ref.
Balance, December 31, 2023
B
1,675
$
Increased by Cash Receipts:
Reserve for Expenditures
B-16
4,600
6,275
Decreased by Cash Disbursements:
Due to Current Fund
B-17
4,125
Balance, December 31, 2024
B
2,150
$
SCHEDULE OF RESERVE FOR PUBLIC DEFENDER TRUST EXPENDITURES
EXHIBIT B-16
Ref.
Balance, December 31, 2023
B
1,675
$
Increased by:
Cash Receipts
B-15
4,600
6,275
Decreased by:
Paid by Current Fund
B-17
4,125
Balance, December 31, 2024
B
2,150
$
90
CITY OF UNION CITY
EXHIBIT B-17
TRUST FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF INTERFUNDS - PUBLIC DEFENDER TRUST FUND
Current
Fund
Ref.
Increased by:
Cash Disbursements
B-15
4,125
$
Decreased by:
Expenditures Paid by Current Fund
B-16
4,125
Net Change in Interfunds
-
Balance, December 31, 2023
B
-
Balance, December 31, 2024
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 YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF CASH AND CASH EQUIVALENTS
Ref.
Balance, December 31, 2023
C
10,142,950
$
Increased by:
Premiums on Note Sales
C-1
99,353
10,242,303
Decreased by:
Due from Current Fund
C-6
2,283,954
Balance, December 31, 2024
C
7,958,349
$
92
EXHIBIT C-3
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
ANALYSIS OF CASH AND CASH EQUIVALENTS
Receipts
Disbursements
Balance
Improvement
Transfers
Balance,
Dec. 31, 2023
Miscellaneous
Authorizations
Miscellaneous
From
To
Dec. 31, 2024
Fund Balance
194,195
$
99,353
$
-
$
-
$
-
$
-
$
293,548
$
Capital Improvement Fund
1,532,811
-
-
-
2,160,000
1,000,000
372,811
Encumbrances Payable
4,893,572
-
-
-
4,893,572
3,315,618
3,315,618
Reserve for Debt Service
29,007
-
-
-
29,007
-
-
Due from Current Fund
(4,552,090)
-
(7,807,037)
2,283,954
1,000,000
29,007
-
Improvement Authorizations:
Ord. 2011-14: Ellsworth Park Improvement
1,210
-
1,210
-
-
-
-
Ord. 2013-08: Washington Park
-
-
13,119
-
-
13,119
-
Ord. 2014-01: Various Imp. / Acquisitions
-
-
30,064
-
-
34,564
4,500
Ord. 2017-13: Improvements to City Parks
8,147
-
8,147
-
-
-
-
Ord. 2017-18: Various Capital Improvements
702,926
-
505,959
-
178,257
258,962
277,672
Ord. 2017-19: Various Park Improvements
118,135
-
118,135
-
-
-
-
Ord. 2018-32: Various Road/Bridge Repairs
-
-
22,599
-
-
22,599
-
Ord. 2018-36: Various CapitalImprovements
2,111,325
-
1,123,656
-
1,075,074
1,326,847
1,239,442
Ord. 2020-05: Various Capital Improvements
-
-
60,008
-
-
77,483
17,475
Ord. 2020-16: Various Road Improvements
29,551
-
29,551
-
-
-
-
Ord. 2020-25: Various Sidewalk Repairs
3,368
-
3,368
-
-
-
-
Ord. 2020-26: Road Repaving & Repairs
173
-
173
-
-
-
-
Ord. 2021-02: Various Improv. & Equipment
(3,819,744)
-
320,931
-
399,048
423,535
(4,116,188)
Reso. 2022-04-05: Summit & 38th Garage
377,363
-
-
-
-
159,522
536,885
Ord. 2022-08: Acquisition of Equipment &
1,700,000
-
571,354
-
267,286
838,640
1,700,000
Ord. 2022-09: Reconstruct DPW Facility -
2,969,845
-
-
-
-
-
2,969,845
Ord. 2023-58: Central Ave Street Lighting
156
-
532,845
-
-
532,844
155
Ord. 2023-62: Various Road Improvements
-
-
265,233
-
-
265,233
-
Ord. 2023-66: Various Improvements -
-
-
293,095
-
647,129
940,224
-
Ord. 2023-76: Various Improvements
3,843,000
-
2,780,431
-
692,127
-
370,442
Ord. 2024-03: Various Park/Safety Surface Imp
-
-
621,081
-
28,919
650,000
-
Ord. 2024-07: Various Roadway Improvements
-
-
321,690
-
3,310
325,000
-
Ord. 2024-18: Park Safety Improvements
-
-
70,288
-
3,568
75,000
1,144
Ord. 2024-22: Various Parking Lot Improvements
-
-
114,100
-
20,900
135,000
-
Ord. 2024-30: Pool and Boiler Improvements
-
-
-
-
-
975,000
975,000
10,142,950
$
99,353
$
-
$
2,283,954
$
11,398,197
$
11,398,197
$
7,958,349
$
C
C-2
C-2
contra
contra
C
93
EXHIBIT C-4
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - FUNDED
Ref.
Balance, December 31, 2023
C
62,228,037
$
Decreased by:
General Serial Bond Payment
C-9
4,830,000
$
Capital Lease Payment - HCIA
C-10
826,216
Capital Lease Payment
C-13
369,151
Green Acres Loan Payment
C-11
77,224
6,102,591
Balance, December 31, 2024
C
56,125,446
$
General Serial Bonds
54,990,000
$
Capital Lease Payable
514,926
Green Acres Loans Payable
620,520
56,125,446
$
94
EXHIBIT C-5
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED
Analysis of Ending Balance
Note Funded
Bond
Non-Financed
Improvement Description and
Balance
by Budget
Balance
Anticipation
Improvement Authorizations
Authorizing Ordinance Number
Dec. 31, 2023
Appropriation
Dec. 31, 2024
Notes
Expended
Unexpended
Ord. 2014-01: Various Capital Improvements
7,188,300
$
284,290
$
6,904,010
$
6,904,010
$
-
$
-
$
Ord. 2017-10: Improvements to Veterans Park
543,900
22,490
521,410
521,410
-
-
Ord. 2017-26: Acquisition of Real Property
1,249,900
51,680
1,198,220
1,198,220
-
-
Ord. 2018-36: Various Capital Improvements
9,871,764
188,540
9,683,224
9,683,224
-
-
Ord. 2021-02: Various Capital Equip. and Improv.
9,774,713
-
9,774,713
3,648,136
4,116,188
2,010,389
28,628,577
$
547,000
$
28,081,577
$
21,955,000
$
4,116,188
$
2,010,389
$
Ref.
C
C-12
C
Decreased by:
95
EXHIBIT C-6
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF DUE FROM CURRENT FUND
Ref.
Balance, December 31, 2023
C
4,552,090
$
Increased by:
Cash Disbursements
C-2
2,283,954
$
Appropriated in Current Budget for:
Capital Improvement Fund
C-14
1,000,000
3,283,954
7,836,044
Decreased by:
Anticipated as Revenue in Current Budget:
Reserve for Retirement of Debt Service
C-15
29,007
Improvement Authorizations Paid by Current
C-7
7,807,037
7,836,044
Balance, December 31, 2024
C
-
$
96
EXHIBIT C-7
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF IMPROVEMENT AUTHORIZATIONS
Improvement Description and
Original
Balance, December 31, 2023
2024
Paid or
Balance, December 31, 2024
Authorizing Ordinance Number
Amount
Funded
Unfunded
Encumbered
Authorizations
Charged
Encumbered
Funded
Unfunded
Ord. 2011-14: Ellsworth Park Improvement
1,016,252
$
1,210
$
-
$
-
$
-
$
1,210
$
-
$
-
$
-
$
Ord. 2013-08: Washington Park
5,508,000
-
-
13,119
-
13,119
-
-
-
Ord. 2014-01: Various Improvements and
Acquisition of Capital Equipment
35,000,000
-
-
34,564
-
30,064
-
-
4,500
Ord. 2017-13: Improvements to City Parks
50,000
8,147
-
-
-
8,147
-
-
-
Ord. 2017-18: Various Capital Improvements
6,000,000
702,926
-
258,962
-
505,959
178,257
277,672
-
Ord. 2017-19: Various Park Improvements
245,000
118,135
-
-
-
118,135
-
-
-
Ord. 2018-32: Various Road & Bridge Repairs
175,580
-
-
22,599
-
22,599
-
-
-
Ord. 2018-36: Various Improvements and
Acquisition of Capital Equipment
10,311,764
-
2,111,325
1,326,847
-
1,123,656
1,075,074
-
1,239,442
Ord. 2020-05: Various Capital Improvements
750,000
-
-
77,483
-
60,008
-
17,475
-
Ord. 2020-16: Various Road Improvements
200,000
29,551
-
-
-
29,551
-
-
-
Ord. 2020-25: Various Sidewalk Repairs
120,000
3,368
-
-
-
3,368
-
-
-
Ord. 2020-26: Road Repaving & Repairs
175,000
173
-
-
-
173
-
-
-
Ord. 2021-02: Various Improv. & Equipment
10,000,000
-
2,306,833
423,535
-
320,931
399,048
-
2,010,389
Reso. 2022-04-05: Summit & 38th Garage
1,160,500
377,363
-
159,522
-
-
-
536,885
-
Ord. 2022-08: Acquisition of Equipment &
Imp. Additional Transitional Aid
5,670,000
1,700,000
-
838,640
-
571,354
267,286
1,700,000
-
Ord. 2022-09: Reconstruct DPW Facility -
Additional Transitional Aid
3,000,000
2,969,845
-
-
-
-
-
2,969,845
-
Ord. 2023-58: Central Ave Street Lighting
533,000
156
-
532,844
-
532,845
-
155
-
Ord. 2023-62: Various Road Improvements
300,000
-
-
265,233
-
265,233
-
-
-
Ord. 2023-66: Various Improvements -
Bergenline Avenue Phase 2
950,000
-
-
940,224
-
293,095
647,129
-
-
Ord. 2023-76: Various Improvements
950,000
3,843,000
-
-
-
2,780,431
692,127
370,442
-
Ord. 2024-03: Various Park/Safety Surface Imp
-
-
-
650,000
621,081
28,919
-
-
Ord. 2024-07: Various Roadway Improvements
-
-
-
325,000
321,690
3,310
-
-
Ord. 2024-18: Park Safety Improvements
-
-
-
75,000
70,288
3,568
1,144
-
Ord. 2024-22: Various Parking Lot Improvements
-
-
-
135,000
114,100
20,900
-
-
Ord. 2024-30: Pool and Boiler Improvements
-
-
-
975,000
-
-
975,000
-
9,753,874
$
4,418,158
$
4,893,572
$
2,160,000
$
7,807,037
$
3,315,618
$
6,848,618
$
3,254,331
$
Ref.
C
C
C-8
C-14
C-6
C-8
C
C
97
EXHIBIT C-8
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF ENCUMBRANCES PAYABLE
Ref.
Balance, December 31, 2023
C
4,893,572
$
Increased by:
Charges to Improvement Authorizations
C-7
3,315,618
8,209,190
Decreased by:
Reversal of Prior Year Balance
C-7
4,893,572
Balance, December 31, 2024
C
3,315,618
$
98
EXHIBIT C-9
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF GENERAL SERIAL BONDS
Maturities of Bonds Outstanding
Date of
Original
Dec. 31, 2024
Interest
Balance
Balance
Purpose
Issue
Amount
Date
Amount
Rate %
Dec. 31, 2023
Decrease
Dec. 31, 2024
ERI Pension Bonds
12/15/2002
15,735,000
$
01/01/2025
475,000
$
6.250
9,510,000
$
375,000
$
9,135,000
$
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
07/15/2025
770,000
2.500
5,720,000
745,000
4,975,000
Obligation Bonds
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
General Obligaton Bonds,
01/21/2021
37,845,000
08/01/2025
2,895,000
2.250
37,845,000
2,855,000
34,990,000
Series 2021 (Qualified) (Callable)
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
General Obligaton Bonds,
01/21/2021
6,745,000
08/01/2025
885,000
1.550
6,745,000
855,000
5,890,000
Taxable Series 2021 (Qualified) (Non-Callable)
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
59,820,000
$
4,830,000
$
54,990,000
$
Ref.
C
C-4
C
99
EXHIBIT C-10
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF CAPITAL LEASE PAYABLE - HCIA
Maturities of Lease Obligations
Date of
Original
Dec. 31, 2024
Interest
Balance
Lease
Balance
Purpose
Issue
Amount
Date
Amount
Rate %
Dec. 31, 2023
Payments
Dec. 31, 2024
NHRFR 2004
01/13/2004
4,766,625
$
01/01/2024
585,375
$
5.330
585,375
$
585,375
$
-
$
NHRFR 2006 A
01/12/2006
1,244,340
01/01/2024
122,093
4.200
122,093
122,093
-
NHRFR 2006 B
01/12/2006
1,152,353
01/01/2024
118,748
5.400
118,748
118,748
-
826,216
$
826,216
$
-
$
Ref.
C
C-4
C
100
EXHIBIT C-11
Sheet 1 of 2
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF GREEN ACRES LOANS PAYABLE
Maturities of Loan Obligations
Date of
Original
Dec. 31, 2024
Interest
Balance
Loan
Balance
Purpose
Issue
Amount
Date
Amount
Rate %
Dec. 31, 2023
Payments
Dec. 31, 2024
Swimming Pool Improvements
12/10/2010
800,000
$
03/10/2025
22,074
2.00
323,447
$
43,494
$
279,953
$
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
03/10/2025
1,931
2.00
28,301
3,805
24,496
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
101
EXHIBIT C-11
Sheet 2 of 2
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF GREEN ACRES LOANS PAYABLE
Maturities of Loan Obligations
Date of
Original
Dec. 31, 2024
Interest
Balance
Loan
Balance
Purpose
Issue
Amount
Date
Amount
Rate %
Dec. 31, 2023
Payments
Dec. 31, 2024
Park Avenue Playground
05/16/2014
590,143
$
02/16/2025
15,188
2.00
345,996
$
29,925
$
316,071
$
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
08/16/2031
17,285
2.00
02/16/2032
17,458
2.00
08/16/2032
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
697,744
$
77,224
$
620,520
$
Ref.
C
C-4
C
102
EXHIBIT C-12
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF BOND ANTICIPATION NOTES
Original
Decreased by:
Improvement Description and
Issue
Issue
Date of
Interest
Balance
Notes
Notes
Principal
Balance
Authorizing Ordinance Number
Amount
Date
Issue
Maturity
Rate
Dec. 31, 2023
Renewed
Refunded
Paydown
Dec. 31, 2024
HCIA Tax-Exempt Pooled Notes, Series 2024B-1
2014-01
Various Capital Improvements/Acquisition
of Various Capital Equipment
739,000
$
09/20/2019
07/12/2024
07/11/2025
4.50%
-
$
655,910
$
-
$
-
$
655,910
$
2017-10
Improvements to 17th Street
598,500
09/20/2019
07/12/2024
07/11/2025
4.50%
-
521,410
-
-
521,410
2017-26
Acquisition of Real Property
1,282,500
09/20/2019
07/12/2024
07/11/2025
4.50%
-
1,198,220
-
-
1,198,220
2018-36
Various Improvements and
Acquisition of Capital Equipment
5,000,000
09/20/2019
07/12/2024
07/11/2025
4.50%
-
4,371,460
-
-
4,371,460
HCIA Tax-Exempt Pooled Notes, Series 2023B-1
2014-01
Various Capital Improvements/Acquisition
of Various Capital Equipment
739,000
09/20/2019
07/25/2023
07/24/2024
5.00%
684,200
-
655,910
28,290
-
2017-10
Improvements to 17th Street
598,500
09/20/2019
07/25/2023
07/24/2024
5.00%
543,900
-
521,410
22,490
-
2017-26
Acquisition of Real Property
1,282,500
09/20/2019
07/25/2023
07/24/2024
5.00%
1,249,900
-
1,198,220
51,680
-
2018-36
Various Improvements and
Acquisition of Capital Equipment
5,000,000
09/20/2019
07/25/2023
07/24/2024
5.00%
4,560,000
-
4,371,460
188,540
-
HCIA Tax-Exempt Pooled Notes, Series 2024A
2021-02
Various Capital Equipment
3,648,136
04/18/2022
03/26/2024
03/25/2025
4.25%
-
3,648,136
-
-
3,648,136
2018-36
Various Capital Equipment
5,311,764
04/18/2022
03/26/2024
03/25/2025
4.25%
-
5,311,764
-
-
5,311,764
2014-01
Various Capital Improvements/Acquisition
of Various Capital Equipment
1,040,100
03/07/3219
03/26/2024
03/25/2025
4.25%
-
1,040,100
-
-
1,040,100
2014-01
Various Capital Improvements/Acquisition
of Various Capital Equipment
7,000,000
07/06/2015
03/26/2024
03/25/2025
4.25%
-
5,208,000
-
-
5,208,000
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
-
5,208,000
256,000
-
22,502,000
$
21,955,000
$
21,955,000
$
547,000
$
21,955,000
$
Ref.
C
contra
contra
C-5
C
Series 2023A
15,464,000
$
Series 2024A
15,208,000
$
Series 2023B-1
7,038,000
Series 2024B-1
6,747,000
22,502,000
$
21,955,000
$
103
EXHIBIT C-13
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF CAPITAL LEASE PAYABLE
Maturities of Lease Obligations
Date of
Original
Dec. 31, 2024
Interest
Balance
Budget
Balance
Purpose
Issue
Amount
Date
Amount
Rate %
Dec. 31, 2023
Appropriation
Dec. 31, 2024
Street Sweeper
11/25/2021
248,357
$
11/25/2025
51,113
$
2.99
153,383
$
49,628
$
103,755
$
11/25/2026
52,642
2.99
Ambulance
07/29/2019
289,970
Matured July 29, 2024
62,262
62,262
-
Ambulance
11/25/2021
319,776
11/25/2025
65,810
2.99
197,488
63,900
133,588
11/25/2026
67,778
2.99
Various Vehicles
08/20/2020
35,411
05/01/2025
7,527
*
14,737
7,210
7,527
Various Vehicles
08/20/2020
397,674
Matured November 1, 2024
83,168
83,168
-
Tahoe and
11/15/2021
274,933
04/01/2025
55,703
*
167,187
53,668
113,519
Interceptors
04/01/2026
57,816
*
Ford Explorer
03/23/2022
35,411
09/01/2025
7,235
*
21,727
6,862
14,865
09/01/2026
7,630
*
Senior Bus and
08/01/2022
225,134
08/01/2025
44,754
*
184,125
42,453
141,672
Two Vehicles
08/01/2026
47,180
*
08/01/2027
49,738
*
884,077
$
369,151
$
514,926
$
Ref.
C
C-4
C
Decreased by:
104
EXHIBIT C-14
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF CAPITAL IMPROVEMENT FUND
Ref.
Balance, December 31, 2023
C
1,532,811
$
Increased by:
Additional Transitional Aid
C-6
1,000,000
2,532,811
Decreased by:
Improvement Authorizations
Ord 2024-03: Various Park/Safety Surface Imp
650,000
$
Ord 2024-07: Various Roadway Improvements
325,000
Ord 2024-18: Park Safety Improvements
75,000
Ord 2024-22: Various Parking Lot Improvements
135,000
Ord 2024-30: Pool and Boiler Improvements
975,000
C-7
2,160,000
Balance, December 31, 2024
C
372,811
$
SCHEDULE OF RESERVE FOR RETIREMENT OF DEBT SERVICE
EXHIBIT C-15
Ref.
Balance, December 31, 2023
C
29,007
$
Decreased by:
Anticipated in Current Fund Budget
C-6
29,007
Balance, December 31, 2024
C
-
$
105
EXHIBIT C-16
CITY OF UNION CITY
GENERAL CAPITAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Improvement Description and
Balance
Balance
Authorizing Ordinance Number
Dec. 31, 2023
Dec. 31, 2024
Ord. 2021-02: Various Capital Equipment and Improvements
6,126,577
$
6,126,577
$
6,126,577
$
6,126,577
$
Ref.
C
C
106
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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 YEAR ENDED DECEMBER 31, 2024
SCHEDULE OF CHANGES IN FIXED ASSETS BY CLASS
Balance
Balance
Dec. 31, 2023
Additions
Dispositions
Dec. 31, 2024
Land
20,351,200
$
267,490
$
-
$
20,618,690
$
Buildings and Improvements
51,705,099
3,529,371
-
55,234,470
Machinery and Equipment
19,470,175
622,444
-
20,092,619
91,526,474
$
4,419,305
$
-
$
95,945,779
$
Ref.
D
D-2
D-2
D
SCHEDULE OF INVESTMENT IN GENERAL FIXED ASSETS
EXHIBIT D-2
Ref.
Balance, December 31, 2023
D
91,526,474
$
Increased by:
Additions
D-1
4,419,305
Balance, December 31, 2024
D
95,945,779
$
107
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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 December 31, 2024 and 2023, 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 June 16, 2025. The opinion to those financial statements is followed by an emphasis of matter paragraph regarding
the City’s reversion to a calendar fiscal year from a fiscal year ended June 30, annually, and the operation of a six month
transition year ending December 31, 2023, in accordance with State Law.
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. Given
these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material
weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
108
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.
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
June 16, 2025
109
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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 December 31, 2024. 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 six month transition year ended December
31, 2024.
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.
110
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.
111
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
June 16, 2025
112
Schedule 1
Page 1 of 2
CITY OF UNION CITY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE TRANSITION YEAR ENDED DECEMBER 31, 2024
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)
07/01/2024
-
06/30/2025
14.218
Direct Award
1,131,991
$
-
$
2,993
$
2,994
$
07/01/2023
-
06/30/2024
14.218
Direct Award
1,114,194
-
461,819
485,159
07/01/2022
-
06/30/2023
14.218
Direct Award
1,053,888
-
338,436
1,166,525
07/01/2021
-
06/30/2022
14.218
Direct Award
1,087,008
-
120,729
933,593
07/01/2020
-
06/30/2021
14.218
Direct Award
1,059,939
-
7,352
1,157,788
Program: COVID-19 CDBG-CV
07/01/2020
-
06/30/2021
14.218
Direct Award
1,200,000
-
2,400
1,202,299
Total Assistance Listing No. 14.218
-
933,729
Total CDBG Entitlement Grants Cluster
-
933,729
Total United States Department of Housing and Urban Development ….................................................................
-
$
933,729
$
United States Department of Justice
Passed through: Not applicable
Cluster: Not Applicable
Program: Bulletproof Vest Partnership Program
04/01/2022
-
08/31/2024
16.607
Direct Award
13,640
$
-
$
3,184
$
9,040
$
Program: COPS Hiring Program
10/01/2022
-
09/30/2027
16.710
Direct Award
3,750,000
-
667,132
832,428
Program: COPS Technology & Equipment
03/15/2022
-
03/31/2024
16.710
Direct Award
1,100,000
-
225,750
604,737
12/29/2022
-
12/31/2024
16.710
Direct Award
1,200,000
949,506
949,506
Total Assistance Listing No. 16.710
-
1,842,388
Program: Edward Byrne Memorial Justice Assistance Grant Program
08/22/2023
-
09/30/2025
16.738
Direct Award
28,718
-
28,441
28,441
Passed through: NJ Law and Public Safety
Program: Body Worn Camera Policy and Implementation
Cumuluative and Ongoing
16.835
100-066-1020-495-092120
476,892
-
18,630
285,830
Total United States Department of Justice ….............................................................................................................
-
$
1,892,643
$
United States Department of Transportation
Passed through NJ Department of Law and Public Safety
Cluster: Highway Safety
Program: National Highway Traffic Safety Association - Click it or Ticket
05/20/2024 - 06/02/2024
20.600
100-066-1160-119-031750
10,500
$
-
$
9,765
$
9,765
$
Program: National Priority Safety Programs
Non-Motorized Safety
Pedestrian Safety Grant
10/01/2023 - 09/30/2024
20.600
100-066-1160-***
35,000
-
35,000
35,000
Total Assistance Listing No. 20.600
-
44,765
Program: Drive Sober or Get Pulled Over Holiday Crackdown
08/19/2022 - 09/05/2022
20.616
100-066-1160-157-031020
10,500
-
5,670
13,790
Total Highway Safety Cluster
-
50,435
Total United States Department of Transportation …...............................................................................................
-
$
50,435
$
See Accompanying Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance.
113
Schedule 1
Page 2 of 2
CITY OF UNION CITY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE TRANSITION YEAR ENDED DECEMBER 31, 2024
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
16,618,182
$
-
$
2,500,700
$
16,618,182
$
Program: Automated License Plate Reader Program
06/19/2023 - 12/31/2025
21.027
100-066-1020-580-091980
222,000
221,500
221,500
Total Assistance Listing No. 21.027
-
2,722,200
Total United States Department of Treasury ….........................................................................................................
-
$
2,722,200
$
United States Department of Health and Human Services
Passed through: Not applicable
Cluster: Not Applicable
Program: Drug Free Community Programs (FAIN: H79SP020734)
09/30/2022 - 09/29/2023
93.276
Direct Award
125,000
$
-
$
95,109
$
123,947
$
09/30/2023 - 09/29/2024
93.276
Direct Award
125,000
-
29,921
29,921
Total Assistance Listing No. 93.276
-
125,030
Passed through: NJDepartment of Health
Cluster: Not Applicable
Program: Strengthening Local Public Health Capacity -
Epidemiology & Lab Capacity (Covid 19 Enhanced Detection Expansion)
See Note 6
07/01/2023 - 06/30/2024
93.323
100-046-4230-***
406,046
-
108,626
338,500
07/01/2024 - 06/30/2025
93.323
100-046-4230-***
74,664
-
11,659
23,319
Total Assistance Listing No. 93.276
-
120,285
Passed through: NJDepartment of Health
Cluster: Not Applicable
Program: Strengthening Local Public Health Capacity
Public Health Crisis Response (COVID Public Health Workforce)
See Note 6
07/01/2023 - 06/30/2024
93.354
100-046-4230-***
406,046
-
108,626
338,500
07/01/2024 - 06/30/2025
93.354
100-046-4230-***
74,664
-
11,659
23,319
Total Assistance Listing No. 93.276
-
120,285
Total United States Department of Health and Human Services …..........................................................................
-
$
365,600
$
TOTAL FEDERAL AWARDS …...............................................................................................................................
-
$
5,964,607
$
N/A - Information Not Available or Not Applicable
No funds were passed through to subrecipients.
See Accompanying Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance.
114
Schedule 2
Sheet 1 of 2
CITY OF UNION CITY
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FOR THE TRANSITION YEAR ENDED DECEMBER 31, 2024
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
07/01/2021
-
09/30/2023
765-042-4900-004-178910
93,039
$
-
$
881
$
93,039
$
07/01/2023
-
06/30/2024
765-042-4900-004-178910
104,355
63,984
98,593
Total Clean Communities
-
64,865
Program: It Pay$ to Plug
02/03/2024
-
11/21/2024
*
24,000
-
21,146
21,146
Program: Recycling Tonnage
07/01/2022
-
06/30/2023
100-042-4910-224-238490
107,409
-
29,396
42,623
Program: Clean Energy Electric Vehicle Tourism Grant
06/01/2022
-
05/30/2023
*
42,000
-
7,610
42,000
Program: Green Acres Trust:
Green Acres - 4100 Palisade Ave.
06/17/2022
*
*
1,000,000
-
27,623
42,823
Green Acres - Reservoir Purchase
09/01/2017
-
09/01/2018
100-072-4870-038
1,000,000
-
267,527
348,145
Total Green Acres Trust
-
295,150
Total NJ Department of Environmental Protection …..............................................................................................
-
$
418,167
$
NJ Department of Treasury
Passed through the County of Hudson:
Program: Municipal Alliance to Prevent Alcoholism and Drug Abuse
07/01/2023
-
06/30/2024
100-082-C001-004
21,005
$
-
$
8,925
$
21,005
$
07/01/2024
-
06/30/2025
100-082-C001-004
21,005
-
14,905
14,905
Program: Youth Leadership Municipal Alliancee
09/01/2023
-
09/30/2025
406-7-2022
7,616
-
7,616
7,616
Total Municipal Alliance to Prevent Alcoholism and Drug Abuse
-
31,446
Passed through: Not Applicable
Program: Community Energy Plan Grant
06/01/2022
-
11/30/2023
71D-082-2014-022
25,000
-
14,700
21,500
Total NJ Department of Treasury ….........................................................................................................................
-
$
46,146
$
NJ Department of Law and Public Safety
Passed through: Not applicable
Program: Body Armor Replacement Fund
01/01/2023
-
12/31/2027
718-066-1020-001-090160
9,471
$
-
$
2,856
$
5,538
$
Total NJ Department of Law and Public Safety …...................................................................................................
-
$
2,856
$
See Accompanying Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance.
115
Schedule 2
Sheet 2 of 2
CITY OF UNION CITY
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FOR THE TRANSITION YEAR ENDED DECEMBER 31, 2024
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-606281
720,000
$
-
$
16,670
$
813,407
$
Program: Local Aid Infrastructure
Road Improvement 37th & 38th
*
-
*
2018-480-078-6320-AMU-600088
1,700,000
-
898,636
898,636
Program: Others
18th, 19th & 16th St Improvements - FY24 Municipal Aid
*
-
*
2024-480-078-6320-APS-606284
860,394
-
487,027
487,027
Central Ave Corridor Improvements - Local Aid Infrastructure
*
-
*
2014-480-078-6320-ALM-600084
1,103,850
-
(70,623)
-
13th, 42nd and 47th Streets - Municipal Aid Program
07/01/2023
-
*
2022-480-078-6320-AO1-606282
443,000
-
383,863
383,863
13th, 37th and 38th Streets - Municipal Aid Program
07/01/2022
-
*
2023-480-078-6320-APF-606283
881,990
-
58,230
561,728
Total Combined Transportation Programs
-
1,773,803
Total NJ Department of Transportation …...............................................................................................................
-
$
1,773,803
$
NJ Administrative Office of the Courts:
Passed through: Not applicable
Program: Alcohol Education and Rehabilitation
07/01/2013
-
*
760-098-9735-001-060000
3,368
$
-
$
250
$
250
$
07/01/2013
-
*
760-098-9735-001-060000
2,216
-
1,311
2,216
Total Alcohol Education and Rehabilitation
-
1,561
Total NJ Administrative Office of the Courts ….......................................................................................................
-
$
1,561
$
NJ Department of Community Affairs:
Passed through: Not applicable
Program: Urban Enterprize Zone (UEZ) Assistance Fund
7/1/2023
-
**
2025-763-022-8030-041-090240
1,774,933
$
1,510,109
$
1,510,109
$
7/1/2022
**
2023-08031-0858
1,702,712
87,689
1,702,712
Total Urban Enterprize Zone (UEZ) Assistance Fund
-
1,597,798
Program: DCA Local Recreation Grant-Pool Improvements
5/17/2023
-
12/31/2024
2023-495-022-8030-668-041190
97,000
-
86,300
86,300
Program: Lead Grant Assistance Program
1/1/2023
-
12/31/2024
23-100-022-8020-304
87,700
-
36,428
36,428
Program: DCA Social Services Grant
7/1/2023
-
12/31/2024
2024-495-022-8030-742-040018
5,000,000
-
4,777,522
4,777,522
Total NJ Department of Community Affairs …........................................................................................................
-
$
6,498,048
$
TOTAL STATE FINANCIAL ASSISTANCE ….....................................................................................................
-
$
8,740,581
$
N/A - Information Not Available or Not Applicable
See Accompanying Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance.
116
CITY OF UNION CITY
NOTES TO SCHEDULES OF EXPENDITURES OF
FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER 31, 2024
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 six month transition year ended December 31,
2024. 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 six month transition year ended December 31,
2024. 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.
117
CITY OF UNION CITY
NOTES TO SCHEDULES OF EXPENDITURES OF
FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER 31, 2024
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 six month transition year ended December 31, 2024 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.
The following awards include both state and federal funding which are not separately identifiable, and which are reported on
the schedule of expenditures of federal awards:
Strengthening Local Public Health Capacity
The City receives grant awards from the New Jersey Department of Health and Human Services which include pass-through
Federal funding commingled with State NJ Health and Human Services (NJHHS) funding. The source of the Federal funds is
the United States Department of Health and Human Services (USHHS) Strengthening Local Public Health Capacity Grants,
specifically, which consists of the Epidemiology and Lab Capacity (Covid 19 Enhanced Detection Expansion) Program
(Assistance Listing Number 93.323) and the Public Health Crisis Response (COVID Public Health Workforce) Program
(Assistance Listing Number 93.354). The City’s accounting system commingles these programs. A review of the USHHS
funding indicates approximately 50% is from each of these Federal programs, then passed through the State NJHHS along with
State funds. Accordingly, the SEFA allocates this commingled funding as 50% to each.
118
CITY OF UNION CITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2024
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?
Yes
P
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:
14.218
-
CDBG Entitlement Grants Cluster
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
2024-495-022-8030-742-040018
-
DCA Social Services Grant
100-072-4870-038
-
Green Acres Trust
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
119
CITY OF UNION CITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (continued)
FOR THE YEAR ENDED DECEMBER 31, 2024
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.)
No reportable findings.
120
CITY OF UNION CITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (continued)
FOR THE YER ENDED DECEMBER 31, 2024
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.)
No reportable findings identified.
121
CITY OF UNION CITY
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS AND
QUESTIONED COSTS AS PREPARED BY MANAGEMENT
FOR THE YEAR ENDED DECEMBER 31, 2024
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.)
No applicable prior-year audit findings.
122
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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 YEAR ENDED DECEMBER 31, 2024
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 $44,000. 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 elected to increase its bid threshold to
$44,000.
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.
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 $44,000 “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.
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.”
123
CITY OF UNION CITY
GENERAL COMMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
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 $6,600 or more, within the terms of N.J.S.A. 40A:11-6.1.
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.
124
CITY OF UNION CITY
GENERAL COMMENTS
FOR THE YEAR ENDED DECEMBER 31, 2024
TAXES AND TAX TITLE LIENS
The taxes outstanding at December 31, 2024 included taxes from the year ended December 31, 2024 and the transition year
ended December 31, 2023 and prior. The following comparison is made of the number of tax title liens receivable:
Number
Year Ended
of Liens
Calendar Year Ended
December 31, 2024
3
Transition Year Ended
December 31, 2023
3
State Fiscal Year Ended
June 30, 2023
2
June 30, 2022
2
June 30, 2021
2
June 30, 2020
2
June 30, 2019
3
June 30, 2018
3
June 30, 2017
3
June 30, 2016
4
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 City identified no change orders which exceeded 20% of the originally awarded
contract during the year ended December 31, 2024.
125
CITY OF UNION CITY
COMMENTS AND RECOMMENDATIONS
FOR THE ENDED DECEMBER 31, 2024
FINDING 2024-001:
Overexpenditures
The City expended $2,577,373 in excess of amounts appropriated in the current year budget, and $631,234 in excess of amounts
available in its appropriation reserves. 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.
Recommendation:
The City should implement or strengthen procedures that will identify and prevent
overexpenditures of appropriations prior to ordering goods and services.
FINDING 2024-002:
Fixed Assets Inventory
Audit sampling of 29 vehicles on the City’s fixed assets inventory identified four vehicles that were previously junked, but
remain on the inventory. An additional two vehicles could not be located at time of inspection.
Recommendation:
Fixed Asset disposal documentation should be forwarded to City officials responsible for
updating and maintaining the City’s fixed assets inventory.
FINDING 2024-003:
Tax Deductions
The City did not provide three of 25 tax abatement applications requested for audit testing. The City did not provide four of
of 25 veteran deduction applications requested, therefore it could not be determined whether these property owners were
eligible for the tax deduction.
Recommendation:
The City should retain applications supporting abatements and veterans deductions, and verify
whether deductions were properly removed when property is sold or transferred.
FINDING 2024-004:
Procurement
The City did not provide resolutions awarding contracts for several vendors with contracts exceeding the pay to play
threshold. One instance was noted in which no proof of advertisement was provided for the request of proposals. Several bid
packages did not include proof of submission of certain required forms and documentation identifying other responding
bidders.
Recommendation:
The City must retain and make available for audit review all resolutions awarding contracts,
proofs of advertisement for solicitation of fair and open proposals and bids, and all forms required
with the submission of bids.
**********************
126
CITY OF UNION CITY
COMMENTS AND RECOMMENDATIONS
FOR THE ENDED DECEMBER 31, 2024
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.
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127
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