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

2. 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

3. 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?

4. 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

5. 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

6. 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%

7. 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, ,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

8. 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

9. 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
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

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

11. BUDGET SUMMARY - Appropriations

12. 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

13. 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

14. CASH AVAILABLE FOR EMERGENCY, CONTIGENCY, RUT VARIANCE AND INVESTMENT
2017 Budget - $57,717,821.83
January
December
2016
2017
Collect ½ of 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 ($ ,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, = $1,183, = $1,334,620.76

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

16. TAX RATE COMPARISON