2008 TOWNSHIP OF MOUNT OLIVE MUNICIPAL BUDGET Mayor David M. Scapicchio William Sohl, Business Administrator Sherry Jenkins, Chief Financial Officer

2008 MUNICIPAL BUDGET In preparing the 2008 municipal budget, we were faced with: 1. Large mandated expenditure increases 2. Little, if any, increase in state aid 3. Revaluation 4. A spending “CAP” as well as the new Property Tax Levy “CAP”

2008 MUNICIPAL BUDGET Because of the revaluation – The normal property tax calculation has changed for 2008 The effect of the revaluation is different for every property owner and therefore the effect of the 2008 budget will also be different

2008 MUNICIPAL BUDGET Revaluation facts: The average assessed home went from $198,000 to $380,300 from 2007 to 2008 The ratable base shifted by 2.0% from commercial to residential from 2007 to 2008 The actual rate in 2007 was $4.101 and the recast rate based upon the new ratable base is $2.207

2008 MUNICIPAL BUDGET Overall review: 1. The appropriation or spending CAP was set at 2.5%. The Mayor’s budget is within the appropriation/spending CAP. 2. The Property Tax Levy Cap was set at 4% with allowances for some items like debt service and pension. The Mayor’s budget is within the levy cap. 3. The proposed municipal increase is 4.1 tax points. This equates to $196 per year or $16 per month for a home assessed at the average assessment of $200,000 in 2007 and $380,300 in 2008.

2008 MUNICIPAL BUDGET Ratables: The ratable base increased to $3.673 billion which is an 85.65% increase over 2007 Moving into 2008 we don’t expect significant ratable growth via added/omitted assessments

2008 MUNICIPAL BUDGET RATABLE ANALYSIS

2008 MUNICIPAL BUDGET Surplus: Our surplus balance at 12/31/07 was $4,908,023.27 which was $841,446.15/20.69% higher than it was at 12/31/06 Surplus increased from additional realized revenue, primarily from taxes, budget balances lapsed and cancelled and miscellaneous revenues not anticipated Our eight year average from 2000 – 2007 was $3,958,000 and we exceeded that by $950,000

2008 MUNICIPAL BUDGET

2008 MUNICIPAL BUDGET Overall changes in revenue from 2007 to 2008 : 1. Surplus – Increased $174,000 2. Construction Fees – Decreased $55,000 due to slowed construction/development 3. Delinquent Taxes – Decreased $228,000 due to fewer taxes outstanding at year-end 4. Open Space Trust – Decreased $100,000 based upon the projected year-end balance in the trust 5. Local Revenues/State Aid/Other Revenues – Increased $109,000 based upon prior year realizations

2008 MUNICIPAL REVENUES

2008 MUNICIPAL BUDGET Changes in expenditures: 1. Salaries/Benefits – Increased $341,000 based upon negotiated contract settlements 2. Roads O/E – Increased $42,000 due to depletion of the accumulated snow trust 3. Fleet Maintenance – Increased $88,000 because of cost of living adjustments and non-contract repair increases 4. Library – 1/3 mil requirement increased $45,000 5. Pension – Increased $400,000 as mandated by the State

2008 MUNICIPAL BUDGET Changes in expenditures (continued): 6. Reserve for Uncollected Taxes – Decreased $521,000 as a result of funds on hand for tax appeals plus appeals recently settled 7. Debt Service – Increased $646,000 due to new borrowings in 2007 and required paydowns in 2008 8. Utilities – Increased $175,000 due to the volatility of the vehicle fuel market and the addition of the new DPW building 9. All Municipal Departments – Operating budgets were decreased 5% overall

2008 MUNICIPAL BUDGET Moving into 2008: We have: 1. $700,000 on hand for tax appeals at 12/31 2. $172,711 in our accumulated absence trust fund for retirement payouts 3. $1,908,000 remaining in surplus to ensure that we will regenerate what we use in the 2008 budget…we do anticipate that regeneration will be significantly less than in 2007 4. We have used many balances on hand in trust funds and various deposits to reduce 2008 budget requests as feasible

2008 MUNICIPAL BUDGET In summary: This budget provides for the same level of services that are expected from the citizens of the Township with a minimal tax increase. We have analyzed future surplus levels and made the appropriate recommendations. Thanks to everyone for their input and assistance.