Budget Introduction – April 18 , 2017 Township of Millburn Budget Introduction – April 18 , 2017

Budget Analysis Amount to be Raised by Taxation = 2 % increase Increase to approximately 1 cent in 2017 (revaluation conversion) What are the “drivers” Insurance Health, Workmen's Compensation, and General Liability Capital Improvements

Revaluation If the value of my home goes up will my taxes go up by the same amount? Not necessarily What is the 1/3 Rule during a Revaluation?

Tax Point Everyone talks about what their tax point is. What is it? This is also referred to as a cent or penny on the tax rate A Tax Point is 0ne Ten-Thousandths of the total amount of Assessed Valuations for a municipality Assessed Valuations are also referred to as Ratables or the NVT Mathematically stated it is .0001

Tax Point Can you compare a tax point from one community to another? Each community tracks it’s Market to Assessed Ratio This is the ratio that approximates the difference between market values to those that are reflected as assessed valuations in the Assessor’s records. Unless everyone is at 100% you are not comparing like communities

Tax Point Community Ratables Tax Point Community A $ 8,176,105,000 $ 8,176,105,000 $ 817,610.50 Community B 9,790,902,341 $ 979,090.23 Community A Ratio 100% Community B Reval. Pending Ratio 86.30%

Average Household Class Description 2016 Tax Value % of 2016 Total 2017 % of 2017 1 Vacant Land 42,999,800 .53 40,231,000. .41 2 Residential 6,742.691,900 82.47 7,956,428,000 81.32 3A Farm (Regular) 3B Farm (Qualified) 4A Commercial 1,275,293,400 15.6 1,619,772,100 16.56 4B Industrial 50,503,000 .62 74,906,500 .77 4C Apartment 64,616,900 .79 92,268,900 .94 Totals 8,176,105,000 9,783,606500

TAX IMPACT ON AVERAGE – “all things being equal” Description Prior to Revaluation (2016 Budget) Post Revaluation Average Value of Property 1,083,000 1,290,300 Assessed Value of All Properties 8,176,105,000 9,790,902,341 Your Property as a % of Total .0132% .0131% Amount to Be Raised by Taxes 41,356,590.65 Tax Rate (Amt. To be Raised/Assessed Value) .505 / $100 AV .429 / $100AV Your Share of Taxes Your Estimated Local Tax Bill $5,459.06 $5,417.73 DECREASE OF $41.33 ON AVERAGE

TAX IMPACT ON AVERAGE – (2017 Budget Impact) Description Prior to Revaluation (2016 Budget) Post to Revaluation (2017 Budget) Average Value of Property 1,083,000 1,290,300 Assessed Value of All Properties 8,176,105,000 9.790.902.341 Your Property as a % of Total .0132% .0131% Amount to Be Raised by Taxes 41,356,590.65 42,200,414.92 Tax Rate (Amt. To be Raised/Assessed Value) .505 / $100 AV .429/$100AV Your Share of Taxes Your Tax Bill $5,459.06 $5,528.25 INCREASE OF $69.19 ON AVERAGE

BUDGET SUMMARY Appropriations Revenues Municipal Taxes Within CAP = 43,485,661.72 (75 %) Outside CAP = 14,232,160.11 (25%) Total = 57,717,821.83 = 1.8% increase Revenues General Revenues = 7,575,855.44 (13%) Surplus Anticipated = 4,700,000.00 (8%) Amount to Be Raised = 42,200,414.92 (73%) Library = 3,241,551.47 (5%) Municipal Taxes .Rate = $.429 Amount To be Raised = 42,200,414.92 = 2% increase

BUDGET SUMMARY - Appropriations

BUDGET SUMMARY-General Revenues Local Revenues ($2,079,000) State Aid and Grants (2,573,394.29) Other (2,923,461.15) ABC Fees & Permits Licenses Interest Golf, Recreation, Pool Court Construction Energy Tax Receipts Municipal Alliance Various Public Safety Clean Communities) Joint Meeting Hotel Tax Cable Franchise Fees Capital Fund Balance/Reserve for Debt Service Other Trust Funds

What do I get for my $1 General Government Insurance Public Safety $0.1090 Insurance $0.1422 Public Safety $0.2537 Public Works $0.1082 Health and Human Services $0.0018 Parks and Recreation $0.0254 Education (including Library) $0.0575 Utilities and Bulk Purchases $0.0465 Landfill / Solid Waste Disposal $0.0321 Statutory Expenditures $0.0818 Shared Services $0.0221 Court and Public Defender $0.0081 Capital $0.0442 Debt $0.0327 Deferred Charges $0.0070 Reserve for Uncollected Taxes $0.0404

CASH AVAILABLE FOR EMERGENCY, CONTIGENCY, RUT VARIANCE AND INVESTMENT 2017 Budget - $57,717,821.83 January December 2016 2017 Collect ½ of 2016 tax levy in the first and second quarter of 2017 $20,675,540.33 Taxes are certified in the 3rd quarter. ½ of 2017 tax levy collected in the 3rd and 4th quarter $21,100,207.46 Total Collected (Maximum) = $41,775,747.99 Total Needed in 2017 = $42,200,414.92 Needed Cash Flow $( 424,666.93) Fund Balance = $10,988,202.77 2017 Obligations Reserved ($950,000.00) Used FB in 2016 Budget ($4,700,000.00) Remaining Fund Balance = $ 5,338,202.77 1st Half Tax Difference ($ 424,666.93) Average Monthly Payroll ($ 825,000.00) Average Monthly Bills List ($ 420,000.00) RUT ($2,333,915.08) $ 1,334,620.76 CASH AVAILABLE FOR EMERGENCY, CONTIGENCY, RUT VARIANCE AND INVESTMENT 2015 = $607,875 2016 = $1,183,817.35 2016 = $1,334,620.76

DEBT SERVICE COMPARISON Rating Agencies view Debt to Budget Ratio – Should be no more than 10% of budget

TAX RATE COMPARISON