WHERE DO OUR TAXES GO? Presented by Mayor David Scapicchio

WHERE DO OUR TAXES GO? Members of the Township Finance Committee: Members of the Township Finance Committee: –Steve Rattner, Township Council –Jim Buell, Township Council –Phil Tobey, Township Council –John Sorel, Resident –Anthony McKeon, Resident –Roy Hansel, Resident

WHERE DO OUR TAXES GO? Members of Council: Members of Council: –Robert Greenbaum, Council President –Steve Rattner, Council Vice-President –Ray Perkins –Colleen Labow –Jim Buell –Phil Tobey –Russ Tepper Bill Sohl, Township Administrator Bill Sohl, Township Administrator Sherry Jenkins, Chief Financial Officer Sherry Jenkins, Chief Financial Officer

WHERE DO OUR TAXES GO?

The average property tax bill in 2006 for Mt. Olive Township was approximately $7,782 ($199,000 average assessment) The average property tax bill in 2006 for Mt. Olive Township was approximately $7,782 ($199,000 average assessment) Of that, $1,788 or 23% went to the Township for municipal services Of that, $1,788 or 23% went to the Township for municipal services The remainder – about $6,000 – went to the schools ($5,166) and the County ($828) The remainder – about $6,000 – went to the schools ($5,166) and the County ($828) This breakdown is fairly typical for municipalities in New Jersey This breakdown is fairly typical for municipalities in New Jersey

WHERE DO OUR TAXES GO? What does the average property owner get for $1,788 per year? What does the average property owner get for $1,788 per year?

WHERE DO OUR TAXES GO? Professionally trained firefighters and police at your call 24/7 protecting you and your family Professionally trained firefighters and police at your call 24/7 protecting you and your family Weekly garbage and recyclable pickup for your household Weekly garbage and recyclable pickup for your household Operation, maintenance and upkeep of parks, playgrounds and recreation programs for you and your family to enjoy Operation, maintenance and upkeep of parks, playgrounds and recreation programs for you and your family to enjoy Operation and maintenance of the municipal beach and lake to enjoy Operation and maintenance of the municipal beach and lake to enjoy

WHERE DO OUR TAXES GO? A public library system for enjoyment and educational enrichment A public library system for enjoyment and educational enrichment Health officials and inspectors who make sure that the restaurants you eat at are sanitary and clean Health officials and inspectors who make sure that the restaurants you eat at are sanitary and clean Cleaning, maintenance and repair of public streets Cleaning, maintenance and repair of public streets Monitoring of development and home improvements to ensure work is done in accordance with all building codes Monitoring of development and home improvements to ensure work is done in accordance with all building codes

WHERE DO OUR TAXES GO? How do those services make up your overall municipal tax bill? How do those services make up your overall municipal tax bill?

WHERE DO OUR TAXES GO?

Costs can be further broken down into fixed or mandated versus discretionary. Fixed costs include: Costs can be further broken down into fixed or mandated versus discretionary. Fixed costs include: Employee salaries, benefits, pension and social security costs represent 50% of the municipal budget or about $900 per year Employee salaries, benefits, pension and social security costs represent 50% of the municipal budget or about $900 per year Debt service and capital is 16% of the municipal budget or $290 per year Debt service and capital is 16% of the municipal budget or $290 per year The reserve for uncollected taxes which allows us to have enough cash to meet our bills represents 12% of the budget or about $215 per year The reserve for uncollected taxes which allows us to have enough cash to meet our bills represents 12% of the budget or about $215 per year

WHERE DO OUR TAXES GO? Other fixed costs include: Other fixed costs include: –Utility charges –General insurance for our buildings and equipment –Maintenance of the library These costs represent 10% of the budget or $180 per year These costs represent 10% of the budget or $180 per year

WHERE DO OUR TAXES GO? The average homeowner pays the following annual costs for these services: The average homeowner pays the following annual costs for these services: 1. Library - $90/year 1. Library - $90/year 2. Turkey Brook Park Maintenance - $15/year and Turkey Brook Park Construction - $65/year 2. Turkey Brook Park Maintenance - $15/year and Turkey Brook Park Construction - $65/year 3. Budd Lake Fire Department Engine - $6/year 3. Budd Lake Fire Department Engine - $6/year 4. Budd Lake Rescue Squad Ambulance - $2/year 4. Budd Lake Rescue Squad Ambulance - $2/year 5. Police, Fire, Rescue Services - $420/year 5. Police, Fire, Rescue Services - $420/year 6. Road, Park and Building Maintenance - $125/year 6. Road, Park and Building Maintenance - $125/year

WHERE DO OUR TAXES GO? Expense increases from 2006 to 2007: Expense increases from 2006 to 2007: –1. Debt Service - $299,000 –2. Salaries - $217,000 –3. Library - $155,000 –4. Pension - $315,000 –5. Health/General Insurance - $155,000 –6. Fleet Maintenance - $75,000

WHERE DO OUR TAXES GO? Expense decreases from 2006 to 2007: Expense decreases from 2006 to 2007: –1. Reserve for Uncollected Taxes - $258,000 –2. Legal - $43,500 –3. Departmental Operating Budgets - $52,500

WHERE DO OUR TAXES GO? 2006 VERSUS 2007: 2006 VERSUS 2007: –The total budget for 2006 = $24,670,115 and for 2007 = $25,532,124 –This year the tax rate increased 3.50% which equals about $54 per year or $4.50 per month to the average homeowner –No services have been eliminated or reduced

WHERE DO OUR TAXES GO? Type of Tax 2006 Tax Rate 2007 Tax Rate Net Change PercentChange Local % Sanit % Open Space % Total %