2013 Municipal Budget Presentation April 2, 2013

Borough Leadership Mayor Suzanne M. Walters Council Members: Judith M. Davies-Dunhour, Council President Barry D. Mastrangelo Joan T. Kramar Albert J. Carusi Karen M. Lane Joselyn O. Rich Jill Gougher, Borough Administrator Suzanne Stanford, Borough Clerk James Nicola, Chief Financial Officer

Municipal Tax Levy and Assessed Values Local Tax Levy and Assessed Values Change% Local Purpose Tax Levy 9,882, ,554, , % Local Tax Rate % Assessed Valuation 4,425,123,139 4,435,159,991 (10,036,852.00)-0.23%

2013 Revenue Plan 2012YTD2013$% DescriptionBudgetThru 12/31PlanDiff Surplus Anticipated$925,000 $1,000,000$75, % Misc. Revenues: ABC Licenses$10,000$10,188$10,000$00.00% Fees & Permits$248,000$245,015$245,000-$3, % Court-Fines & Costs$74,000$89,995$80,000$6, % Int. & Costs on Taxes$74,000$72,183$70,000-$4, % Parking Meters$340,000$365,355$350,000$10, % Interest on Investments$25,000$8,949$7,000-$18, % Beach Tags$709,000$704,172$700,000-$9, % Tennis Courts$20,000$19,556$19,000-$1, % UFC Official$154,000$157,203$154,000$00.00% Arts & Crafts Show$84,000$80,035$80,000-$4, % Marina$4,500$4,956$4,500$00.00% Cable TV Franchise$26,000$27,280$26,000$00.00% Beach Concession$40,000$35,000 -$5, % Rent$108,000$107,039$100,000-$8, % Special Events$29,000$20,813$20,000-$9, % Total Misc. Revenues$1,945,500$1,947,739$1,900,500-$45, %

2013 Revenue Plan continued 2012YTD2013$% DescriptionBudgetThru 12/31PlanDiff State Aid Energy Receipts Tax$214,317 $00.00% Total State Aid$214,317 $00.00% Uniform Construction Code$285,000$461,995$300,000$15, % Special Items of Revenue Grants$195,494 $ 12,783-$182, % Uniform Fire Safety Act$6,000$7,041$7,000$1, % Reserve to Pay Bonds$60,033 $63,377$3, % Capital Fund Balance$48,000 $0-$48, % Total Special Items$309,527$310,568$83,160-$226, % Receipts from Delinquent Taxes$327,000$320,785$250,000-$77, % Sub-Total Revenues$4,006,344$4,180,404$3,747,977-$258, % Amount To Be Raised By Taxes$9,554,967$9,791,590$9,882,620$327, % Total Revenues$13,561,311$13,971,994$13,630,597$69, %

Functional Areas Administration & Finance Public Safety Public Works Natural Resources Beach, Recreation & Tourism Debt Service Utilities – Water & Sewer

2013 Administration & Finance Committee Barry D. Mastrangelo, Chair Joan T. Kramar Albert Carusi

Administration and Finance include the following functional areas: Administration which includes Council, Administrator, Municipal Clerks Office, Engineering and Finance Tax Administration which includes Tax Collection and Tax Assessment Planning and Zoning Boards Legal Construction Office Insurance – Medical, General Liability, Workers Compensation, Property and Vehicle 2013 Administration & Finance Functional Areas

2013 Administration & Finance Summary The total for Administration and Finance is up $73,162 or 2.64%. The most significant increase is in Group Medical Insurance which saw an increase of $28,337. This is due to the increase in the State Health Benefits Program. The second greatest increase is $12,741 which is in Other Insurance due to an upgrade in Liability coverage which reduces the Boroughs long term exposure in any future lawsuits. Almost all Departmental Operating Expenses remained the same or decreased. Capital Projects for Administration and Finance in 2013include Computer upgrades, purchase of new phone system, and purchase of an Electronic Sign for Borough Hall. While the cost of these projects total $125,000 the Borough only needed to fund in this year’s budget $42, The balance being funded in prior capital budgets Other Unclassified Expenses Included in this category are FICA, Unemployment Insurance, longevity payout, PFRS, PERS DCRP, 100 th Anniversary Funds, Contingent, Capital Improvement Fund and Deferred Charges. There is an overall decrease of $57, The three biggest reductions are in PFRS down $32,585, Longevity down $14,270 and Capital Improvement Fund down $20, Debt Service: The Debt Service has increased over 2012 by $96,996. This is due to the permanent bonding in 2011.

Administration & Finance Expenditure Comparison 2012 vs. 2013

2013 Public Safety Committee Albert Carusi, Chair Barry D. Mastrangelo Judith M. Davies-Dunhour

Public Safety Functional Areas Public Safety includes the following function areas: Police Fire Department Municipal Court including Public Defender and Prosecutor Uniform Fire Code Office of Emergency Management Fire Hydrant Service.

2013 Public Safety Summary The overall Public Safety Budget is up $113,852. The biggest increase is in Police Salaries and Wages which is up $90,615. This is due to contractual increases and increase in overtime and Class II salaries. Vol. Fire Department – Expenses remained flat at $204,300. Biggest portion of expenses is $100,000 for EMS stipend and $58,700 for Fire Stipend. Aid to Vol. Rescue Squad remains flat at $70,000 Police salaries are up $113, Police Other Expenses remain flat. Municipal Courts Salaries increased by $21,830 due to the Inter-local shared service with Avalon. The Borough will be receiving revenue from Avalon for 2013 in the amount of $51,900 for their share of the Inter-local shared service. The Borough will realize a net savings of $30, Municipal Court Other Expenses decreased slightly by $320. Public Defender Fees remained flat. Prosecutor Salaries remained flat. Uniform Fire Subcode salaries increased by $1,777 due to salary increases Uniform Fire Subcode Other Expenses decreased by $50. Office of Emergency Management Salaries remained flat. Office of Emergency Management Other Expenses remained flat. Fire Hydrant Service Other Expenses remained flat Capital: $454,000 - $135,360 funded by prior years. $318,640 funded in Fire: Power Lift Stretchers/Cot System $82,000, Misc. Fire Equipment $15,000 Police: New 911 system $200,000, computer upgrades $100,000, Radio Equipment $3,500, firearms $2,500, 4wd Vehicle $45,000, Equipment $6, Goals: Continue to work on Shared Services for Dispatching.

2012YTD2013 $ % BudgetThru 12/31PlanDiff.Diff Public Safety Fire Department O/E$204,300$211,276$204,300$00.00% Police Department S&W$1,651,947$1,667,859$1,742,562$90, % Police Department O/E$82,900$81,926$82,900$00.00% Office of Emergency Mgt. S&W$12,400$12,015$12,400$00.00% Office of Emergency Mgt.O/E$6,400$6,046$6,400$00.00% Aid to Vol. Rescue Squad$70,000 $00.00% Municipal Courts S&W$119,822$118,771$141,652$21, % Municipal Courts O/E$15,420$9,613$15,100-$ % Public Defender$3,500 $00.00% Municipal Prosecutor S&W$20,000 $00.00% Uniform Fire Code Off. S&W$88,850 $90,627$1, % Uniform Fire Code Off. O/E$8,050$6,189$8,000-$ % Fire Hydrant Service O/E$2,800 $00.00% Total Public Safety$2,286,389$2,298,845$2,400,241$113, % 2013 Public Safety Expenditure Comparison 2012 vs. 2013

2013 Public Works Committee Joan T. Kramar, Chair Barry D. Mastrangelo Karen Lane

Public Works Functional Areas The Public Works department functional areas include: DPW Labor Pool Solid Waste Grounds Special Events Safety Compliance

2013 Public Works Summary The Public Works budget has an increase of $35,525 or 1.77%. The majority of this increase is due to contractual wage increases. Labor Pool Salaries increased by $8,209 due to union contracts Special Events Salaries remained flat. Solid Waste Salaries increased by $17,014 due to union contracts Public Works Other Expenses increased by $800. Solid Waste Other Expenses increased by $2,702. Building and Grounds increased by $5,300. Board of Health remained flat at $2,000. Expenses include pest control. Safety Compliance increased by $1, General Bulk Utilities: Bulk Utilities include Gasoline, Electric, Street Lighting and Telephone. The Utility Expenses remained flat Capital Projects: The 2013 Capital Project costs total $3,296,500, of this $2,764,662 has been funded in prior year Capital Budgets. $531,838 will be funded in 2013 Capital. PW: Purchase of Recycling/Trash Packer - $250,000, Dump Truck $130,000, Pick Up Trucks $45,000 Buildings: Imp to Buildings $57,500, Police Building Improvements $500,000(Prep of Specs), 9/11 Project $122,215, Bulkhead replacement $400,000, Fishing Pier Reconstruction $40,400 PW: Trash Containers - $22,000, Flags & Banners $10,000, Radios $5,000 Parking Meters/Kiosk $72,000, Street Signs $6,000, Landscaping Imp $5,000, Trash Truck Floors $20,000, Genie Scissor Lift $38,000, Grounds Equipment $20,000,HVAC Units $32,000, Tools/Chest $7,500 and Snow Plow rack $4,000 Various Parking Lots, Streets & Sidewalks: $1,500,000 Streets & Curbs $10,000

2013 Public Works Expenditure Comparison 2012 vs YTD2013 $ % DescriptionBudgetThru 12/31PlanDiff.Diff Public Works Labor Pool S&W$876,327$771,058$884,536$8, % Special Events S&W$40,000$38,529$40,000$00.00% Public Works O/E$119,900$118,599$120,700$ % Solid Waste S&W$625,309$568,871$642,323$17, % Solid Waste O/E$186,748$244,736$189,450$2, % Buildings & Grounds O/E$135,550$132,512$140,850$5, % Board of Health S&W$445$356$445$00.00% Board of Health O/E$2,000$1,383$2,000$00.00% Safety Compliance O/E$23,500$20,347$25,000$1, % Total Public Works$2,009,779$1,896,391$2,045,304$35, %

2013 Natural Resources Committee Joselyn Rich, Chair Albert Carusi Karen Lane

Natural Resources Functional Areas Animal Control Natural Resources – Beach, Bay, Bird Sanctuary

2013 Natural Resources Summary The Total Budget for Natural Resources for 2013 is $45,575. There is a overall reduction of $3,425 for Bird Sanctuary maintenance $5000 Misc $6,575. Includes printing of promotional materials, dues for Shade Tree, purchase of periodicals, contract for Tree Removal and weed control and training for Shade Tree Committee members. Professional Fees $34,000 includes site monitoring and preparation of annual progress report required to be submitted to State. Animal control 2013 $20,000: no change from prior year. Animal control contract with Middle Township $9968, Ross Environmental skunk control $5,000, County Animal Shelter $4,379, spray/neuter fund $653. Goals for 2013: Prepare master plan for dredging and Bird Sanctuary, continue with site 103 project capital: Beach Improvements $40,000

2013 Natural Resources Expenditure Comparison 2012 vs YTD2013 $ % DescriptionBudget Thru 12/31PlanDiff.Diff Natural Resources$49,000$41,595$45,575-$3, % Animal Control$20,000$5,957$20,000$00.00% Total Natural Resources$69,000$47,552$65,575-$3, %

2013 Beach, Recreation & Tourism Committee Judith Davies-Dunhour, Chair Joan Kramar Joselyn Rich

Beach, Recreation & Tourism Functional Areas Beach, Recreation and Tourism functional areas include: Beach Recreation Tourism Marina

2013 Beach, Recreation and Tourism Summary The overall BRT budget is down $6,252. The Borough will have a Full Time Tourism Department starting April 1 st and still realize an overall savings. Marina salaries remained flat at $6,000 Beach Salaries remained flat at $580,000. Other Expenses remained flat at $51,000 Recreation Salaries down $4,252. Other Expenses remained flat at $45,300 Arts & Craft was combined with Tourism. Salaries decreased by $2,000 and Other Expenses remained flat Capital: Total Capital for 2013 is $123,500. Funded in prior years is $78,961. Funding required in 2013 is $44,539. Court Repairs $39,500, Equipment for New Recreation Support Building $21,000 and Upgrade to Playgrounds $14,000, ADA Water Fountains $15,000, Signage for Recreation Buildings $6,000, replace Rescue Boards $10,000 and purchase Lifeboats $18,

2013 Beach, Recreation and Tourism Expenditure Comparison 2012 vs YTD2013 $ % DescriptionBudget Thru 12/31PlanDiff.Diff Beach & Recreation Marina, Docks, Bulkheads S&W$6,000$5,244$6,000$00.00% Beach S&W$580,000$556,132$580,000$00.00% Beach O/E$51,000$49,589$51,000$00.00% Parks/Playgrounds S&W$131,252$118,406$127,000-$4, % Parks/Playgrounds O/E$45,300$39,011$45,300$00.00% Arts & Craft S&W$14,420$13,568$0-$14, % Arts & Craft OE$30,200$25,051$0-$30, % Tourism S&W$38,000$27,801$50,420$12, % Tourism OE$88,065$79,597$118,265$30, % Total Beach & Recreation$984,237$914,399$977,985-$6, %

2012YTD2013 $ % Budget Thru 12/31PlanDiff.Diff Utility Expenses Gasoline$160,000 $00.00% Electric$105,000$98,000$105,000$00.00% Street Lighting$110,000 $00.00% Telephone$60,000$57,501$60,000$00.00% Total Utility$435,000$425,501$435,000$00.00% 2013 General Utility Expenses

Debt Service 2012YTD2013 $ % BudgetThru 12/31PlanDiff.Diff Bond Principal$2,275,000 $2,405,000$130, % Bond Interest$794,517 $720,017-$74, % NJEIT Principal$135,900 $153,118$17, % NJEIT Interest$48,600 $72,878$24, % Total Debt Service$3,254,017 $3,351,013$96, %

Unclassified Expenditures 2012YTD2013 $ % DescriptionBudgetThru 12/31PlanDiff.Diff Unclassified F.I.C.A.$400,000$365,017$400,000$00.00% Unemployment Ins.$25,000$21,585$27,000$2, % Longevity$38,887$38,886$24,617-$14, % P.F.R.S.$294,179 $261,594-$32, % P.E.R.S.$284,338 $294,782$10, % DCRP$2,000$2,864$3,500$1, % 100th Anniversary$10,000 $00.00% Contingent$5,000$0$5,000$00.00% Capital Improvement Fund$50,000 $30,000-$20, % Special Emergency$10,000 $00.00% Deferred Charge-Ordinance 1269$4,950 $0-$4, % Total Unclassified$1,124,354$1,081,819$1,066,493-$57, %

Reserve For Uncollected Taxes 2012YTD2013 $ % DescriptionBudget Thru 12/31PlanDiff.Diff Reserve for Uncollected Taxes$430,000 $00.00%

2013 Budget

Water & Sewer Utility Fund Committee Karen M. Lane, Chair Judith M. Davies-Dunhour Joselyn O. Rich

Water & Sewer Functional Areas Operation of Sanitary Sewer Pump Stations Operation of Water System Maintenance of Sanitary Sewer Pump Stations Maintenance of Water System, Water Tower, Water Wells

Water & Sewer Utility Fund Summary There is an overall increase in the Utility Budget of $59, Because the Utility was not self liquidating we were required to budget $65,000 for capital improvements. Debt Service increased $27,928 due to permanently funding prior year projects and utilizing NJEIT funding for the Outfall projects. Operating Expenses decreased by $42,635. The primary decrease came from the fees charged by the CMCMUA. This is the second year for significant decreases in the operating budget. Improvements of our infrastructure have resulted in less storm water infiltration in our sewer systems resulting in a reduction in fees being charged by the Cape May County Municipal Utility Authority. Revenues: Water Rents: The Borough collected $1,247, in 2012 and we are anticipating $1,247,000 in the 2013 Budget. Sewer Rents: The Borough collected $1,505, in 2012 and we are anticipating $1,505,000 in the 2013 budget. Fire Hydrant Service: No change in Revenue $2,800 Miscellaneous Revenues: The Borough Collected $90, and we are anticipating $90,000 in the 2013 Budget. Surplus: The Borough is utilizing $193,258 to offset expenses in This is a decrease of $12,181 from Because of an overall reduction in water usage the Borough authorized a rate increase on basic water rtes and connection fees. Due o this increase the Borough is anticipating an additional $65,000 in Water Rents and $20,000 in Sewer rents. The Rate increase should allow the Borough to be self liquidating at the end of 2013.

Water & Sewer Utility Fund Summary continued Expenditures: Salaries and Wages: 2013 Salaries are $405,000. This is a slight increase of $11,526 from 2012 due to anticipated contractual salary increases. Other Expenses: 2013 Appropriations are $478,830. This is an increase of $7,365 over Most of the increase is in cost of repairs. Cape May County MUA Fee: 2013 Appropriation is 1,150,000. This is a decrease of $50,000 over Debt Service: 2013 Debt Service is $989,028, an increase of $27,928 over Capital: 2013 Capital Projects total $1,754,000, $216,632 is funded from prior year budgets and $1,537,368 is funded through the 2013 Capital Plan. Water/Sewer Upgrades $1,450,000, Sewer Pumps-Lift Stations $45,000, GIS Study $10,000, Fire Hydrants $10,000, Manhole Inserts $4,000, Drill New South End Well $100,000, Dewatering System Improvements $75,000, Scata System $50,000 Meter/RT Upgrades $10, Goals: Complete Outfall Projects, Finalize permit request to the State for an increase in our Water Allocation Permit, create Water Conservation Master Plan and begin process of becoming Sustainable Jersey certified.

2013 Water & Sewer Revenue Plan 2012YTD2013$% BudgetThru 12/31PlanDiff.Diff REVENUES Surplus Anticipated$205,439 $193,258-$12, % Water Rents$1,280,000$1,247,921$1,312,000$32, % Sewer Rents$1,500,000$1,505,344$1,525,000$25, % Fire Hydrant Service$2,800 $00.00% Miscellaneous$75,000$90,586$90,000$15, % Total Revenues$3,063,239$3,052,090$3,123,058$59, %

2013 Water & Sewer Utility Fund Expenditure Comparison 2012 vs $ % DescriptionBudgetRequestedDiff.Diff Water & Sewer Budget Salaries & Wages $ 393,474 $ 405,000$11, % Other Expenses$471,465$478,830$7, % Cape May County MUA$1,200,000$1,150,000-$50, % TOTAL OPERATING EXPENSES$2,064,939$2,033,830-$31, % Capital Improvement Fund$0$65,000 Debt Service$961,100$989,028$27, % Statutory Expenditures$37,200$35,200-$2, % Total Water & Sewer Utility$3,063,239$3,123,058$59, %