Presentation on theme: "KINGWOOD UDGET PRESENTATION TOWNSHIP OF KINGWOOD 2012 BUDGET PRESENTATION."— Presentation transcript:
KINGWOOD UDGET PRESENTATION TOWNSHIP OF KINGWOOD 2012 BUDGET PRESENTATION
The following Budget is presented for your review as required by the statutes of the State of New Jersey. Prior to the actual Budget, we have included an analysis of the proposed tax levy as compared to the actual tax levy for the year 2012. The actual Budget is presented in such a way that you may easily distinguish the prior year’s budget and actual figures in comparison to this year’s projection. The revenues reflect an increase over last year’s budget of $50,558.15. Also, this year’s appropriations reflect an increase of $72,558.15 over last year’s final adopted budget. I. Tax Levy Calculation As of the date of introduction of this budget, other tax requirements have not been determined. Therefore, the 2012 tax levies are subject to revision when final certification is made by the County Board of Taxation. Levy Cap Calculation: Prior Year amount to be raised by taxation for Municipal Purposes:$ 1,162,954.00 Add: 2% increase allowed$ 23,259.00 Exclusions: Allowable pension increase$ 1,548.00 Allowable health insurance increase$ 1,015.00 Allowable debt service increase$ 5,040.00 Additions: New ratables adjustment$ 4,358.00 Maximum Allowable Amount to be Raised by Taxation$1,198,174.00 Actual Amount to be Raised by Taxation$1,184,954.00 Amount Under Amount Allowed:$ 13,220.00 Levy CAP Bank$ 56,195.00
Appropriation “CAPS” All municipalities within the State of New Jersey prepare their annual budgets based on what is commonly referred to as the “CAP” law. This law places restrictions on the amount of increases allowed for operations on an annual basis. For the year 2012 the allowed percentage increase is 2.5%, which is the “Implicit Price Deflator”. The municipality is also allowed to increase their budgets by an additional 1.0% if an ordinance is passed by the governing body. The governing body has elected to increase the budget CAP base by 3.5% for 2012. The actual calculation is somewhat complex, but in general, it works as follows. Starting with the figure in the 2011 budget for Total General Appropriations, the following 2011 budget figures are subtracted; reserve for uncollected taxes, debt service (including school debt services if the municipal government pays it), state and federal aid, cash deficit (if any), emergency appropriations up to 3.0%. Take the resulting figure and multiply it by.035 and this gives you the basic CAP, or the amount of appropriations increase allowed over the 2011 Total General Appropriations. In addition to the increase allowed above, other increases are allowed. Increases funded by increased valuations from new construction or improvements, from new or increased service fees, or from the sale of municipal assets, and expenditures mandated by the state and federal government after January 1, 1993 and amounts required to be paid pursuant to any contract with respect to use, services or provision of any project, facility or public improvement, for water, sewer, solid waste, parking or any similar purpose, or payment on account of debt service therefore, between municipality and any other municipality, county, school or other district, agency, authority, commission, instrumentality, public corporation, body corporate and politic or political subdivision of the State. Appropriations for the item subtracted in the above paragraph may be set at any necessary level and not subject to the CAP. The actual CAPS for Kingwood will be reviewed and approved by the Division of Local Government Services in the State Department of Community Affairs, but the calculation upon which this budget was prepared is as follows: The Township incurred $35,000 in Emergency Authorizations for 2011 from Hurricane Irene and the Pre-Halloween snow storm. The entire $35,000 must be raised in the 2012 budget and is 48% of the $72,558.15 increase in the total appropriations for 2012. The next slide is a calculation of the CAP allowed for 2012.
Total Appropriations for 2011$2,772,361.00 Less Exceptions & Adjustments: Capital Improvements$163,600.00 Municipal Debt Service$189,885.00 Grant Funds$4,236.00 Deferred Charges$30,000.00 Other Allowed Exceptions$11,535.00 Reserve for Uncollected Taxes$566,300.00 Total Exceptions & Adjustments$965,556.00 Amount of which "CAP' is applied$1,805,805.00 3.5% "CAP"$63,203.00 2010 & 2011 "CAP" Bank$86,070.00 Additional Amount Allowed due to New Construction$4,358.00 Allowable Operating Approprations within "CAP"$1,959,436.00 Amount Appropriated Within "CAP"$1,822,655.00 Amount under "CAP"$136,781.00
2011 TAX DISTRIBUTION CHART The chart indicates the percentages of the Township’s 2011 tax rate of $2.036. Kingwood Township School represented 44% or $5,425,640.00, Delaware Valley Regional School represented 27% or $3,340,690.83, Hunterdon County represented 18.1% or $2,267,914.93, Kingwood Township’s operating expenses represented 9.4% or $1,162,954.00 and the municipal open space represented 1.5% or $182,500.00.
Salary line items have increased 18.45% since 2005. 2005-2012 SALARY COMPARISON
Other expenses have increased 30.95% since 2005. 2005 – 2012 OTHER EXPENSE COMPARISON
2005-2012 DEFERRED CHARGES COMPARISON Due to Hurricane Irene and the Pre-Halloween snow storm, Kingwood must raise in their 2012 Budget $35,000 through deferred charges to cover the expenses associated with those events. This is the last year for the deferred charge for the preparation of a Master Plan. 2005 2006 2007 2008 2009 2010 2011 2012
2005-2012 CAPITAL IMPROVEMENT FUNDING Through Kingwood Township’s Capital Improvement Funding, the Township has been able to resurface roads, make a donation to the Rescue Squad towards the purchase of a new ambulance, reserve funds for the future purchase of municipal equipment. This planning has made it possible for the Township to issue no debt for the purchase of new equipment or road resurfacing. 2005 2006 2007 2008 2009 2010 2011 2012
2005-2012 RESERVE FOR UNCOLLECTED TAXES COMPARISON A line item in the municipal budget which is designed to insure the municipality sufficient cash to carry out its functions after providing the required tax levy in full to other government units-- schools, county and special districts. This reserve becomes an amount added to the municipal tax levy required to meet the budget, and represents the amount of tax monies expected to remain uncollected at the end of the year, based on the collection level of the previous year. (State of NJ/DCA website)
2005-2012 SURPLUS COMPARISON Kingwood Township has utilized as much surplus as it felt was fiscally sound to minimize the tax increase for 2012.
In 2010, the Township adopted Ordinance No. 16-1-2010 for the installation of solar panels on the DPW garage. The total cost of the project was lower than the anticipated cost of $225,000. The final cost of the installation was $195,860.53. The Township received a grant from the New Jersey Board of Public Utilities in the amount of $115,000. As of December 31, 2011, the Township has recouped $25,435.00 of the costs associated with the installation of the solar panels. As a result of the solar panels, the Township has been able to realize approximately $400.00 per month in electricity costs.
2005-2012 ANTICIPATED REVENUE COMPARISON A comparison of the anticipated revenues for the last five years reveal very little increase in revenues. The greatest increase in 2011 is in the construction permit fees, due largely to the installation of the two solar facilities in the Township.
2005-2012 AMOUNT TO BE RAISED BY TAXATION The Amount to be Raised by Taxation is the amount the taxpayers of Kingwood pay to support the yearly budget. The rate stayed level in 2008 and 2009 and 2010 and 2011. The projected 2012 tax rate for Kingwood will be 19.6 cents. The rate represents an increase in the local property tax rate of.005 cents for 2012. For the average house, assessed at $371,876, the increase will be $18.00.
2005-2012 PERCENTAGE OF SURPLUS USED The chart indicates the percentage of the surplus used towards the last eight years’ budgets. The percentage has not varied very much in the last four years.
This concludes the 2012 Budget presentation. The full budget is available online on the Township’s website,www.kingwoodtownship.com. If you would like any clarification on any item in the budget, please contact the Township offices. Thank you.