Township of Toms River
P.O. Box 728
Toms River, NJ 08753
Debbi Winogracki
Public Information Officer
Toms River Township
732-341-1000 ext. 8211
732-232-8288 cell
FOR IMMEDIATE RELEASE
July 2, 2013
2013 Toms River Township Municipal Budget
Toms River Township released their 2013 Municipal Budget recently. Mayor Thomas F.
Kelaher stated, “The singular focus in our preparation of the 2013 budget has been the
continuation of a high level of service to our residents in spite of the monumental challenges
we face in the continuing recovery after Superstorm Sandy. For over 80% of our population,
Superstorm Sandy basically ended for them the day their power was restored. Our ongoing
challenge is to balance the needs of those residents with the demands for continuing and
expanding services for those who were impacted by Sandy.” The Mayor added, “It was also
critical for the Township to be proactive in addressing the reduction of the assessed valuation
base caused by Sandy and the recently-completed reassessment. If we did not act, there would
have been an inevitable shift in the property tax burden onto the properties that were not
damaged from Sandy, which would have been untenable for most of those property owners.”
Mayor Kelaher summarized the Township’s budget strategy as follows:
•
# 1 Priority – reduce the property tax impact on the properties NOT impacted by Sandy.
If nothing is done to address this, there will be large “spike” in the property taxes of
those property owners not impacted by Sandy. If proactive measures are not taken,
property tax increases would range from 20 to 30% for properties NOT impacted by
Sandy.
•
Over $2.3 billion in damage to the ratable base from Superstorm Sandy
•
Overall reduction in the ratable base inclusive of damage from Sandy is $4 billion
from 2012 to 2013. Since 2009 (the year of the revaluation), the ratable base
has decreased by over $6.2 billion.
1
•
Continue level of public services to areas of Township unaffected by Sandy (80% of the
Township)
•
Expand level of public services as necessary for areas impacted by Sandy, inclusive of
police and public works
•
Address the issue of replacement of police officers due to a record number of retirees
over the past 2 budget years (27% of the force has retired)
•
Initiate capital projects necessary to rebuild from the storm and continue with capital
projects for areas of the township NOT impacted by Sandy
2
3
Budget Summary:
•
Increase in the size of the budget approximately $16 million, due primarily to an
increase in deferred charges pertaining to Sandy expenditures & a substantial increase
in the Reserve for Uncollected Taxes
•
“Other Expense” (i.e. Departmental expenses) are basically “flat” once again for the 4th
budget year in a row
•
Over half of the increase in the Salary/Wage expense is due to the police department –
replacing police officers
•
The property tax levy is $4.7 million LESS than 2012 and is actually LESS than the levy in
2011
•
The property tax levy is over $10 million UNDER the state-imposed levy CAP
•
On the appropriations side, the budget is $2 million UNDER the appropriations CAP
•
The Township aggressively sought funding to help offset the loss of the ratable base
and received
•
$5 million in the form of a FEMA Community Disaster Loan
•
$15.5 million in State CDBG Essential Services Grant Funding which will be
dedicated to expenditures in the Police Department, Department of Public
Works and Landfill expenditures.
•
The budget also includes anticipated FEMA reimbursement of over $7 million for
storm-related costs
4
5
6
7
8
Summary of Impact on Property Taxes:
•
Based on the new “average” assessed residential valuation for 2013 of $234,597, the
“average” residential home will pay $1,245.39 in municipal purposes taxes in 2013. This
represents a decrease from $1,413.40 in 2012.
•
It is vitally important to note, however that, due to the reassessment, the tax rate for
municipal purposes of .5309 per $100 of assessed valuation will impact each property
differently. Some properties will have an increase while others will decrease and some
will stay the same. To determine the impact on individual properties, property owners
can apply the 2012 municipal purposes tax rate of .3981 to their 2012 assessment and
then apply the 2013 tax rate of .5309 to their 2013 assessment
•
It is very important to note that the Township applied for additional assistance from
the State CDBG Essential Services grant program on behalf of the Toms River Board of
Education. The State NJDCA approved funding of $12.5 million on 6/27/13, which will
be utilized to REDUCE the tax levy from the Board of Education.
9
Budget Amendment:
•
At the conclusion of today’s budget hearing, the budget, as introduced, will need to be
amended, principally due to additional CDBG Essential Services funding in the amount
of $6.266 million, that has been approved by the State NJDCA and the requirement to
dedicate expenditures in the budget to that revenue source (police, DPW and landfill
costs). The amendment will be read into the record and then set for a public hearing
(on the amendment only) on 7/9/13, after which time, the budget, as amended can be
adopted. The total amount of the amendment (i.e. net change in the budget), after
“netting” out the revenue and expenditures will be $200,826.33.
10
2013 TOMS RIVER
TOWNSHIP MUNICIPAL
BUDGET
Mayor Thomas F. Kelaher
Paul J. Shives, Business Administrator
July 2, 2013
2013 Budget Challenges
• The impact of “Sandy”
• Damage to ratable base
• Increased demand for services, especially police and public works
• Ongoing cleanup costs
• Replacement of Township infrastructure and facilities
• Reassessment –
• Addressing the “shift” in property values due to reductions from
Sandy and overall reductions in assessed value for most properties
• Retirement of record number of Police Officers
Budget Strategy
• # 1 Priority – reduce the property tax impact on the properties
•
•
•
•
NOT impacted by Sandy. If nothing is done to address this,
there will be large “spikes” in the property taxes of those
property owners not impacted by Sandy. If proactive measures
are not taken, property tax increases would range from 30 to
40% for properties NOT impacted by Sandy.
Continue level of public services to areas of Township
unaffected by Sandy (80% of the Township)
Expand level of public services as necessary for areas
impacted by Sandy inclusive of police and public works
Address the issue of replacement of police officers due to a
record number of retirees over the past 2 budget years (27% of
the force has retired)
Initiate capital projects necessary to rebuild from the storm and
continue with capital projects for areas of the township NOT
impacted by Sandy
$18,000,000,000.00
$16,330,239,318
$16,000,000,000.00
$14,000,000,000.00
$13,384,652,660
$12,000,000,000.00
$11,358,769,560
$10,000,000,000.00
$8,000,000,000.00
$6,000,000,000.00
$4,000,000,000.00
$2,000,000,000.00
$-
2012 Ratable Base
2013 Without Storm
Damage
2013 WITH Storm
Damaage
Assessed Valuation Comparision
$18,000,000,000.00
$17,565,329,442.00
$17,114,850,650.00
$16,950,383,560.00
$16,330,239,318.00
$16,000,000,000.00
$14,000,000,000.00
$11,358,769,560.00
$12,000,000,000.00
$10,000,000,000.00
$8,000,000,000.00
$6,000,000,000.00
$4,000,000,000.00
$2,000,000,000.00
$2009 Assessment
2010 Assessment
2011 Assessment
2012 Assessment
2013 Assessment
$5,118,892.41
$9,044,291.65
General Administration/Support
Serv.
Public Safety
$10,033,473.33
Comm Dev/Zoning/Human Serv.
$25,611,455.07
Public Works/Eng/Rec
Bldg Inspection
$12,381,505.00
Utilities and Landfill
Ins. & Employee Benefits
Capital/Debt Service
Deferred Charges
Reserve for Uncoll. Taxes
$15,428,155.33
$1,769,780.11
$27,992,175.00
$1,755,656.44
$7,562,500.00
Major Budget Factors
$16,000,000.00
$229,633.00
$493,535
$804,615
Pension Contributions
$14,000,000.00
$1,686,722
Debt Service
$12,000,000.00
$3,079,049
$10,000,000.00
Insurance
$8,000,000.00
Salaries and Wages
$6,000,000.00
$9,033,473
$4,000,000.00
Reserve for Uncollected
Taxes
$2,000,000.00
$-
Emergency
Authorizations (Deferred
Charges)
Increase In Salaries/Wages 2013 Budget
$1,800,000.00
Total Increase in
S/W
$1,600,000.00
Increase in Police
S/W
$1,686,721.86
$1,400,000.00
$1,200,000.00
$877,355.00
$1,000,000.00
$800,000.00
$600,000.00
$400,000.00
$200,000.00
$-
$3,000,000.00
$3,805,100.00
$8,492,807.00
$1,235,000.00
Surplus
Local Revenue
$60,299,375.84
$32,865,601.51
State Aid
UCC Fees
Other Misc
Revenue
Delinquent Tax
Revenue
Local Taxes
$7,000,000.00
Summary of Budget
• Increase in the size of the budget approximately $16
•
•
•
•
million, due primarily to an increase in deferred charges
pertaining to Sandy expenditures & a substantial increase
in the Reserve for Uncollected Taxes
“Other Expense” (i.e. Departmental expenses) are
basically “flat” once again for the 4th budget year in a row
Over half of the increase in the Salary/Wage expense is
due to the police department – replacing police officers
The property tax levy is $4.7 million LESS than 2012 and
is actually LESS than the levy in 2011
The property tax levy is over $10 million UNDER the
state-imposed levy CAP
Summary of Budget
• On the appropriations side, the budget is $2 million
UNDER the appropriations CAP
• The Township aggressively sought funding to help offset
the loss of the ratable base and received
• $5 million in FEMA CDL
• $15.5 million in State CDBG Funding
• The budget also includes anticipated FEMA reimbursement of over
$7 million for storm-related costs
$90,000,000.00
Compliance with Levy/Appropriations Caps
$82,423,032.24
$80,204,429.86
$80,000,000.00
$70,708,263.00
$70,000,000.00
$60,325,282.58
$60,000,000.00
$50,000,000.00
Limit
$40,000,000.00
Budget
$30,000,000.00
$20,000,000.00
$10,000,000.00
$-
Levy Cap
Approrpriations Cap
Municipal Levy Comparision 2011 - 2013
$66,000,000
65,017,507.96
$65,000,000
$64,000,000
$63,000,000
$62,000,000
$61,479,907.00
$60,299,375.84
$61,000,000
$60,000,000
$59,000,000
$58,000,000
$57,000,000
2011 Levy
2012 LEVY
2013 LEVY
$1,559.32
$1,600.00
$1,413.40
$1,400.00
$1,245.39
$1,200.00
$1,000.00
$800.00
$600.00
$400.00
$200.00
$-
2012 "Average"
municipal taxes
Without FEMA/CDBG
funding
2013 "Average"
municipal taxes
“Average” Property Tax for Municipal
Purposes 2013
• Based on the new “average” assessed residential
valuation for 2013 of $234,597, the “average” residential
home will pay $1,245.39 in municipal purposes taxes in
2013. This represents a decrease from $1,413.40 in
2012.
• It is vitally important to note, however that, due to the
reassessment, the tax rate for municipal purposes of
.5309 per $100 of assessed valuation will impact each
property differently. Some properties will have an
increase while others will decrease and some will stay the
same. To determine the impact on individual properties,
property owners can apply the 2012 municipal purposes
tax rate of .3981 to their 2012 assessment and then apply
the 2013 tax rate of .5309 to their 2013 assessment.
Toms River Bd. Of Ed. – CDBG Funding
• It is very important to note that the Township applied
for additional assistance from the State CDBG
Essential Services grant program on behalf of the
Toms River Board of Education. The State NJDCA
approved funding of $12.5 million on 6/27/13, which
will be utilized to REDUCE the tax levy from the Board
of Education.
Toms River Bd. Of Ed. – CDBG Funding
TRBOE Levy - WITH CDBG Funding
$132,000,000.00
$130,174,935.00
$130,000,000.00
$128,000,000.00
$126,000,000.00
$124,000,000.00
$122,000,000.00
$120,000,000.00
$117,674,935.00
$118,000,000.00
$116,000,000.00
$114,000,000.00
$112,000,000.00
$110,000,000.00
TR Board of Education Levy TR Board of Education Levy
- Budget as approved
- WITH CDBG Funding
Budget Amendment
• At the conclusion of today’s budget hearing, the budget,
as introduced, will need to be amended, principally due to
additional CDBG Essential Services funding that has
been approved by the State NJDCA and the requirement
to dedicate expenditures in the budget to that revenue
source (police, DPW and landfill costs). The amendment
will be read into the record and then set for a public
hearing (on the amendment only) on 7/9/13, after which
time, the budget, as amended can be adopted. The total
amount of the amendment (i.e. net change in the budget),
after “netting” out the revenue and expenditures will be
$200,826.33.
Resolution of the Township of Toms River,
County of Ocean, State of New Jersey, to Amend
Approved Budget in accordance with the Provision of
NJSA 40A:4-9
July 2, 2013
WHEREAS, the local municipal budget for 2013 was approved on the 28th day of May,
and;
WHEREAS, the public hearing on said budget was advertised on June 1,
2013, and
WHEREAS, it is desired to amend said approved budget; and,
WHEREAS, the public hearing on the said budget amendment will be advertised on the
6th day of July, 2013 and held on the 9th day of July, 2013;
NOW, THEREFORE, BE IT RESOLVED by the Governing Body of the Township of Toms
River, County of Ocean that the following amendments to the approved 2013 budget
be made:
From
To
1.
2.
Surplus Anticipated
Total Surplus Anticipated
3.
Miscellaneous Revenues - Section B:
State Aid Without Offsetting Appropriations:
Res. For Garden State Trust Fund
Total Section B: State Aid Without Offsetting
Appropriations
3.
3.
Miscellaneous Revenues - Section F:
Special Items of General Revenue
Anticipated with Prior Written
Concent of Director of Local
Government Services - Public and
Private Revenues Offset with
Appropriations:
Recycling Tonnage Grant
COPS in SHOPS Shore Initative 2013
Municipal Alliance on Alcoholism
and Drug Abuse
Ocean County 966 Reimbursement
Program
NJ Depart of Human Services - Division
of Youth & Family Services
COPS in SHOPS Shore Initative 2012
NJDL&PS - Click It or Ticket It
State of NJ - Drive Sober or Get Pulled Over
County of Ocean Grant - Senior Center/
Caregiver Participant Contribution
County of Ocean-Senior Transportation Grant
Total Section F: Special Item of General
Revenue Anticipated with Prior Written
Consent of Director of Local Government
Services - Public and Private Revenues
Miscellaneous Revenues - Section G:
Special Items of General Revenue
$
$
$
$
9,000,000.00
9,000,000.00
$
$
3,000,000.00
3,000,000.00
0.00
$
300.04
8,492,807.00
$
8,493,107.04
0.00
0.00
$
$
177,138.44
2,400.00
0.00
$
48,000.00
0.00
$
1,824.00
0.00
0.00
0.00
0.00
$
$
$
$
54,691.00
2,400.00
4,000.00
2,200.00
0.00
0.00
$
$
3,500.00
2,000.00
338,246.07
$
636,399.51
1.
3.
Anticipated with Prior Written
Concent of Director of Local
Government Services - Other Special Items:
CDBG Funds
Total Section G: Special Item of General
Revenue Anticipated with Prior Written
Consent of Director of Local Government
Services - Other Special Items
SUMMARY OF REVENUES
Surplus Anticipated (Sheet 4, #1)
Miscellaneous Revenues:
Total Section B:State Aid Without Offsetting
Appropriations
Total Section F: Special Items of Revenue
Anticipated with Prior Written consent of
Director of Local Government Services-Public
and Private Revenues
5.
6.
7.
8.
Total Section G Special Items of Revenue
Anticipated with Prior Written consent of
Director of Local Government Services-Other
Special Items
Total Miscellaneous Revenues
Subtotal General Revenues (Items1,2,3,4)
Amount to be Raised by Taxes for Support of
Municipal Budget:
a.) Local Tax for Municipal Purposes Including
Reserve for Uncollected Taxes
Total Amount to be Raised by Taxes for
Support of Municipal Budget
Total General Revenues
GENERAL APPROPRIATIONS
(A) Operations -within "CAPS"
Township Council (Governing Body)
Other Expenses
Office of the Clerk-Elections
Salaries and Wages
Other Expenses
Department of Police
Salaries and Wages
Streets and Road Maintenance
Salaries and Wages
Solid Waste Collection
Salaries and Wages
Recycling
Salaries and Wages
Landfill Expenses
General Liability
Health Benefit Waiver
Total Operations{Item 8(A)} within "CAPS"
Total Operations Including Contingent within
"CAPS"
Detail:
Salaries and Wages
Other Expenses (Including Contingent)
(H-1) Total General Appropriations for
Municipal Purposes within 'CAPS"
(A) Operations -Excluded from "CAPS"
CDBG ESSENTIAL SERVICES FUNDING:
Police Salaries and Wages
Department of Public Works:
$
9,244,382.00
$ 15,510,417.00
$ 23,516,922.00
$ 29,782,957.00
$
9,000,000.00
$
3,000,000.00
$
8,492,807.00
$
8,493,107.04
$
338,246.07
$
636,399.51
$ 23,516,922.00
$ 39,834,320.07
$ 55,834,320.07
$ 29,782,957.00
$ 46,398,808.55
$ 56,398,808.55
$ 60,688,644.69
$ 60,324,971.66
$ 60,688,644.69
$116,522,964.76
$ 60,324,971.66
$116,723,780.21
$
7,900.00
$
32,900.00
$
$
8,500.00
18,450.00
$
$
33,000.00
36,900.00
$ 21,277,355.00
$
9,666,938.00
$
2,539,591.68
$
1,639,591.68
$
2,108,757.12
$
908,757.12
$ 2,075,751.20
$ 2,982,500.00
$ 1,260,000.00
$
220,000.00
$ 70,779,654.86
$ 1,275,751.20
$ 1,982,500.00
$ 1,245,000.00
$
235,000.00
$ 55,337,187.86
$ 70,784,654.86
$ 55,342,187.86
$ 39,482,402.86
$ 31,302,252.00
$ 25,011,485.86
$ 30,330,702.00
$ 80,204,429.86
$ 64,761,962.86
0.00
$ 11,610,417.00
9.
8.
Streets and Road Maintenance - S & W
Solid Waste Collection - S & W
Recycling - S & W
Landfill Expenses
Total Other Operations-Excluded from "CAPS"
Public and Private Programs Offset by
Revenues
State of NJ-Department of Human Resources
Division of Youth & Family Services Grant
Local Match
Municipal Alliance Grant
Municipal Alliance Grant-Local Match
State of NJ Drive Sober or Get Pulled Over
State of NJ DHS-Click It or Ticket It
State of NJ COPS in SHOPS Grant -Shore
Initiative- 2013
County of Ocean-Senior Center Part. Contrib.
County of Ocean-Senior Center Transportation
Grant
County of Ocean - 966 Reimbursement
State of NJ COPS in SHOPS Grant -Shore
Initiative- 2012
Total Public and Private Programs Offset by
Revenue
Total Operation - Excluded from "CAPS"
Detail:
Salaries and Wages
Other Expenses
(H-2) Total General Appropriations for
Municipal Purposes Excluded from "CAPS"
(O) Total General Appropriations - Excluded
from "CAPS"
(L) Subtotal General Appropriations
{Items (H-1) and (O)}
(M) Reserve for Uncollected Taxes
Total General Appropriations
GENERAL APPROPRIATIONS
Summary of Appropriations
(H-1) Total General Appropriations for
Municipal Purposes within "CAPS"
(A) Operations Excluded from "CAPS"
Other Operations
Public & Private Progs Offset by Revs
Total Operations - Excluded from "CAPS"
(M) Reserve for Uncollected Taxes
Total General Appropriations
$
0.00
0.00
0.00
0.00
1,265,463.00
$
900,000.00
$ 1,200,000.00
$
800,000.00
$ 1,000,000.00
$ 16,775,880.00
0.00
0.00
0.00
0.00
0.00
0.00
$
$
$
$
$
$
54,691.00
12,579.00
48,000.00
12,000.00
2,200.00
4,000.00
0.00
0.00
$
$
2,400.00
3,500.00
0.00
0.00
$
$
2,000.00
1,824.00
0.00
$
2,400.00
$
$
1,143,932.51
4,935,640.51
$ 1,289,526.51
$ 20,591,651.51
$
$
1,679,600.00
3,256,040.51
$ 16,261,308.00
$ 4,330,343.51
$ 27,260,618.84
$ 42,916,629.84
$ 27,260,618.84
$ 42,916,629.84
$107,465,048.70
$ 9,057,916.06
$116,522,964.76
$107,678,592.70
$ 9,045,187.51
$116,723,780.21
$ 80,204,429.86
$ 64,761,962.86
$ 1,265,463.00
$ 1,143,932.51
$ 4,935,640.51
$ 9,057,916.06
$116,522,964.76
$ 16,775,880.00
$ 1,289,526.51
$ 20,591,651.51
$ 9,045,187.51
$116,723,780.21
BE IT FURTHER RESOLVED, that two certified copies of this Resolution be filed forthwith
with the Division of Local Government Services for certification of the 2013 Municipal
Budget so amended along with each of the following:
•
•
•
•
Business Administrator
Township Attorney
Township Auditor
Chief Financial Officer
Approved as to Content:
____________________________
Christine J Manolio