1. 2015 Municipal Budget Overview
Borough of Montvale
April 14, 2015

2. Key Questions
What are the sources of revenue that the Borough expects in 2015?
What are the Borough’s key expenses and significant expenditures in 2015?
How will this affect our municipal tax rate?
What is the current financial state of the Borough?
What challenges do we face, and what is our strategy to build upon Montvale’s strong financial footing?

3. 2015 Budget Summary Revenues
Budget Year (2015)
Proposed
Prior
Year (2014)
Adopted
Change
Percent
Surplus Anticipated (Utilized)
4,750,000
2,800,000
1,950,000
69.64%
Local
486,450
478,450
8,000
1.67%
State Aid
1,262,378 0%
Construction Code
210,000
225,000
<15,000>
<6.67>%
Interlocal Agreements
166,427
166,381 46
0.03%
Public & Private Revenue
685,600
18,577
667,023 %
Special Items
329,305
300,744
28,561
9.50%
Delinquent Tax
215,000
<5,000>
<2.33>%
Municipal Tax
11,839,107
11,499,918
339,189
2.95%
TOTALS
19,939,267
16,966,448
2,972,819
17.52%

4. 2015 Budget Summary Appropriations
Budget Year (2015) Proposed
Prior Year
(2014)
Adopted
Change
Percent
Salary and Wages
4,445,012
4,245,485
199,527
4.70%
Deferred Charges & Statutory Expenditures
992,956
952,199
40,757
4.28%
Other Appropriations
7,931,257
7,640,232
291,025
3.81%
Debt Service
1,824,105
1,823,305
800
.04%
Capital Improvements
3,166,958
786,100
2,380,858
302.87%
Reserve for Uncollected Taxes
1,578,979
1,519,127
59,852
3.94%
TOTALS
19,939,267
16,966,448
2,972,819
17.52%

5. Significant Expenditures
Road Resurfacing
Fire Engine Replacement
Sewer Line Project at Pascack Brook
Planning, Design, & Engineering Costs for replacement of Montvale Firehouse
While capital expenditures, the Borough is paying for these projects and items with current funds, not additional debt.

6. Property Tax Levies 2015 (Projected) 2014 2013 2012 Municipal
11,839,107
11,499,918
11,181,960
10,767,930
Open Space
102,808
100,465
100,623
118,762
Regional School
12,196,368
11,841,134
11,270,846
10,919,352
Local School
15,523,031
15,070,904
14,645,752
14,217,867
County
5,449,701
5,290,972
4,960,331
4,961,331
Total Levy
45,111,015
43,803,393
42,159,512
40,985,242

7. 2015 Projected Tax Levy

8. Tax Rate Comparison 2015 2014 Change Percent Total Municipal .576 .572
(Projected)
2014
Change
Percent
County
.265
.264
.001
.38%
Regional School
.593
.590
.003
.51%
Local School
.755
.750
.005
.67%
Open Space 0%
Library
.036
.038
<.002>
<5.26>%
Municipal
.540
.534
.006
1.12%
Total Municipal
.576
.572
.004
.70%
Total
2.194
2.181
.013
.60%

9. The average assessed value of a residence is estimated at approximately $514, The projected increase in the 2015 municipal portion of tax for an average residence is estimated at approximately $31.

10. Montvale Surplus Overview
Surplus plays two important roles for the town: 1) it serves as a cushion against the impact of negative financial events; and 2) it provides liquidity for cash flow. Year Utilized in Budget Balance at Year End 2008 $2,325,000 $3,058, $1,800,000 $2,190, $1,800,000 $2,955, $1,800,000 $3,672, $1,800,000 $4,448, $2,100,000 $5,686, $2,800,000 $6,707, (proposed) $4,750,000 $4,572,090

11. Municipal Debt Year Bonds Notes Authorized But Not Issued Total 2010
10,198,000 1,
46,616
12,144,616
2011
12,663,000
1,528
12,644,528
2012
11,175,000
2013
9,685,000
2014
8,155,000

12. Debt Service: Current Schedule
Combined Existing
Outstanding Debt
Year
Principal
Interest
Total
At End of Year
2015
$ 1,575,000
$ ,100
$ 1,824,100
$ 6,580,000
2016
1,595,000
200,950
1,795,950
4,985,000
2017
1,630,000
152,450
1,782,450
3,355,000
2018
1,625,000
105,900
1,730,900
1,730,000
2019
875,000
47,563
922,563
855,000
2020
425,000
21,375
446,375
430,000
2021
10,750
440,750

13. Municipal Debt
The Borough’s bond rating is a AAA with a stable outlook. The following factors (among others) were considered in determining the rating: - Surplus and the ability to replenish - Outstanding debt and the ability to pay - Tax Base - Strong financial management practices and a stable financial position

14. Surplus vs. Municipal Debt
If Montvale has a significant Surplus, why don’t we just pay off our Municipal Debt?
Our current debt is at advantageous rates that might be difficult to replicate in the future
We are careful about economic changes that may place a call on our surplus
In a sense, we are holding down additional debt by paying for capital items with surplus this year
Also: the “fairness” issue…

15. Long-term Investments: Who Should Pay?
For major projects that will serve Montvale for 50+ years, like the new firehouse, financing a large part of it through debt shares the financial burden of paying for it between today’s taxpayers and future Montvale residents.

16. Challenges Ahead Upcoming Infrastructure Investments
Firehouse Replacement
Road Maintenance; Aging Sanitary Sewer System
Fieldstone Turf Replacement
Changing Corporate Real Estate Environment
Are Large Corporate HQs Going to Continue?
Will Tax Appeals Increase in Frequency and Size?
Employee Pension and Health Benefit Liabilities
Much of this Driven by Trenton & Overall Economy
Continue Offering Services While Managing Salaries and Benefits

17. Strategies: Infrastructure
Firehouse Replacement
Explore financing that dovetails with paydown of existing Borough debt
Timing: Spring, 2016
Road Program
Develop a multi-year schedule and treat as a regular line in operating budget
Fieldstone Turf Replacement/Sanitary Sewers
Projects require study
Pursue Grants when Available

18. Strategies: Corporate Real Estate
Evaluate Current Zoning
Review Master Plan
Continue Outreach to New Corporate Tenants
Expand Scope to Nontraditional Tenants
Target Entities with Strong Ties to Specific Location Infrastructure
Establish Increased Reserve for Tax Appeals

19. Strategies: Salary & Benefit Costs
Manage Health Costs; Explore Alternative Plan Designs
Reduced Costs by Approximately 8.2% in 2014
Achieve Greater Efficiency though Continued Successful Shared Services
Realized Savings of Over $300,000 in 2014 through Pascack Valley DPW
Consolidated Municipal Court continues to produce savings
Continue to Pursue Flexible Employment Approach in Administration, etc.

20. Questions?

21. APPENDIX & EXHIBITS

22. Grants Received Clean Communities Recycling Tonnage Grant
2012                       $13,601.29
2013                       $15,976.00
2014                       $14,984.21
Recycling Tonnage Grant
$6,892.00
2013                       $12,143.68
2014                       $10,627.30

23. Medical Benefits Comparison of Health Insurance Costs
for 2014 and 2013
Difference
Actual Cost
Increase
Group Insurance
2014
2013
(Decrease)
Medical
631,079
690,014
(58,935)
Prescription
217,357
229,447
(12,090)
Dental
43,312
52,100
(8,788)
Total
891,748
971,561
(79,813)
% Decrease
8.20%

24. SHARED SERVICE ANALYSIS
BUDGET
(INCREASE)/
2013
2014
DECREASE
ROAD REPAIRS AND MAINTENANCE:
SALARIES AND WAGES
$599,735 $0
OTHER EXPENSES
$306,525
$10,000
$296,525
PUBLIC BUILDINGS AND GROUNDS:
$101,426
$25,000
$76,426
$121,567
$40,000
$81,567
SEWER SYSTEM:
$60,000
$50,000
RECYCLING:
$8,550
$120,000
$5,000
$115,000
MAINTENANCE OF ALL VEHICLES:
$123,000
$34,000
$89,000
OPEN SPACE:
$31,000
$23,899
OTHER EXPENSES - OTHER:
FICA
$56,664
$1,913
$54,752
WORKERS COMPENSATION
$33,399
$1,051
$32,348
PENSION
$70,377
$2,730
$67,647
HEALTH
$217,104
VISION
$4,500
LIFE
$535
CAPITAL IMPROVEMENTS
SHARED SERVICE AGREEMENT:
RIVERVALE
$1,503,000
($1,503,000)
$1,938,281
$1,632,694
$305,587