Executive Municipal Budget Overview Presentation
Jill ian Barrick, Business Administrator
Town Council Meeting | May 25, 2021
FY 2021
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWNFY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
● 1.8 cent increase in Municipal Tax Rate
● $5.42 monthly increase to average residential home of
$355,808
● Net Assessed Valuation –$2,296,392,450
● $559,804 under the 2% Property Tax Levy CAP
● One Cent of the Municipal Tax Rate =$229,639
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Budget Summary Points
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Property Tax Rates
FY2020 FY2021 * Difference
Municipal $1.025 $1.043 $0.018
School District* $1.458 $1.446 -$0.013
County* $0.344 $0.332 -$0.012
Library $0.045 $0.043 -$0.002
TOTAL $2.883 $2.871 -$0.011
* FY 2021 Estimated Tax Rates
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FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
FY 2021 Property Tax Rates Breakdown
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$0.36 of Each Total Tax Dollar
Funds Municipal Government
Municipal36.3%
School District50.3%
County11.8%
Library1.5%
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Tax Bill Comparison(per $100k of assessed value)
FY 2021 Total Property Tax $ EffectDecrease of -$2.88/quarter or -$11.53/year
FY2020 FY2021 Difference
Municipal Tax $1,025 $1,043 $18.27
Morris School District Tax* $1,458 $1,446 ($12.42)
Morris County Tax* $355 $340 ($15.12)
Public Library Tax $45 $43 ($2.26)
Total Tax Bill Amount $2,883 $2,871 ($11.53)
* FY 2021 Estimated Tax Amounts
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FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Tax BaseFY 2021 Town Net Assessed Valuation: $2,296,392,450
$29 million increase as compared to 2020 ratables
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2020 2021 Difference
Vacant Land $17,756,200 $26,285,000 $8,528,800
Residential $1,284,274,800 $1,289,671,900 $5,397,100
Commercial $707,233,200 $718,131,450 $10,898,250
Industrial $7,430,100 $7,430,100 $0
Apartment $250,710,500 $254,874,000 $4,163,500
Total Assessed Value $2,267,404,800 $2,296,392,450 $28,987,650
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Equalization Rate
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76.02%
80.24%
85.29%86.02% 85.53%
80.12%
78.32%
72.42%
75.39%74.03%
77.00%
65.00%
70.00%
75.00%
80.00%
85.00%
90.00%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Equalization Rate
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Financial Summary Totals
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FY2020 FY2021
Operating Fund
Municipal Budget $41,847,256 $42,884,114
Grants 573,853 855,822
Operating Fund Total 42,421,109 43,739,936
Percent Change 3.1%
Sewer Utility Fund
Sewer Utility Budget 7,808,746 7,235,258
Capital Improvements Plan 311,000 250,000
Sewer Utility Fund Total 8,119,746 7,485,258
Percent Change -7.81%
Total Financial Budgets $50,540,855 $51,225,194
Percent Change 1.4%
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
2% Property Tax Levy CAP
• Projected Total Revenues - $43,739,936
• Maximum Allowable Municipal Tax Levy Amount -$24,517,272
• FY 2021 Municipal Tax Levy Revenue -$23,957,467
• $559,805 Under Tax Levy Cap Limit
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FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
FY 2021 Anticipated Revenues (%)“Where The Budget $$ Comes From”
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Municipal Tax Levy57.0%
Surplus Anticipated10.1%
Special Items7.0%
Sewer Utility Surplus8.7%
State Aid6.6%Local Revenues
4.9%Receipts from Delinquent Taxes
1.6%
UCC2.3%State & Federal Grants
2.0%
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
COVID-Sensitive Revenues
1 1
2019 Actual
2020Actual
2021Proposed
3-Year Average
FINES & COSTS - Municipal Court 1,072,632 566,551 786,000 886,979
LICENSES - Clerk/Health/Marriage 135,621 100,052 120,000 123,498
Swimming Pool 113,783 64,183 98,000 98,538
Sewer Utility User Fees 7,600,873 6,818,035 7,141,258 7,348,285
Hotel/Motel Tax 606,539 235,782 180,000 496,920
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
General Revenues
Revenue Increases FY2020 vs FY2021 Budget (projected)
• Uniform Construction Code fees $392,000
• Receipts from Delinquent Taxes $125,000
Swimming Pool Fees $98,000
• PILOT - 45 Market (Vertical) $70,000
• Municipal Court $36,000
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FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
“State Aid” aka Energy Tax Receipts and CMPTRA
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$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021
Actual Amount Received State Aid Formula
Cumulatively, the
State has shorted the
Town $19.7 million
since 2001
Full funding of
Energy Tax
Receipts/CMPTRA
equals $0.10 cents or
$340 to the average
homeowner
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Use of Surplus/Fund Balance
• The town typically budgets for between $2.0 and $3.0 million in Surplus annually
• Surplus is generated by lapsed appropriations and unanticipated revenue
• Use of Surplus should be targeted to one-time expenses
• Surplus Policy resolution adopted in 2018.
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Source & Use Amount
Revenue Source
Fund Balance Anticipated (Surplus) $4,400,000
Total $4,400,000
Proposed Appropriation Use
Reserve for Tax Appeals 400,000
Capital Improvements 150,000
Reserve for Sick and Vacation Accumulation 200,000
Reserve for Uncollected Taxes 811,065
Municipal Operations - Property Tax Relief 1,730,890
COVID 19- Loss of Revenue (projected) $1,108,045
Total $4,400,000
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Fund Balance Trend
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$4,362,291
$14,920,374 $14,790,342 $14,647,500
$13,636,594 $14,018,004
$12,431,435
$11,031,435
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
FY 2014 FY 2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021PROPOSED
Fund Bal. December 31st Proposed Fund Balance Target Fund Balance Target
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN 16
FY 2021 Proposed Appropriations (%)“How The Budget Revenues Are Allocated”
Capital Improvements150,000
0.3%
Shared Service Agreements
796,1861 .8%
Reserve for Uncollected Taxes
811 ,0651 .9%
Other4,068,834
9.3%
Debt Services3,171 ,900
7.3%
Pension4,748,310
10.9%
General Government
5,390,38412.3%
Insurance7,031 ,031
16.1%
Public Works6,846,080
15.7%
Public Safety10,726,145
24.5%
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
General AppropriationsDepartmental Operations - $24,690,670
• Up 4%, or $837,241.
• Salary & Wages - $18,689,814 (43% of Total Appropriations)
• Up +4%, or $ 701,737
• 192 Full-Time Employees
184 Current fund, 8 Sewer Utility
• Other Expenses - $ 6,000,856 (14% of Total Appropriations)
• Up 2%, or $135,503
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FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
What Changed? – Largest Increases
OPERATING BUDGET FY2021 Increase*
PFRS Pension 380,144
Medical and Dental Insurance 265,161
Reserve for Vacation and Sick Pay 200,000
Police Salary and Wages 177,872
Recycling and Sanitation Services 160,606
TOTAL CHANGE 1,183,783
*compared to FY2020 Budget
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FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
What Changed? – Largest Decreases
OPERATING BUDGET FY2021 Decrease*
Interest on Bonds -294,690
Tax Assessor –Other Expenses -200,000
Reserve for Tax Appeals -100,000
Capital Improvement Fund -75,000
Zoning - Salary and Wages -55,878
TOTAL CHANGE -725,568
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*compared to FY2020 Budget
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Pension Costs
FY 2021 Pension Cost - $ 3,998,674
FY 2021 Pension Obligations
• PFRS - $380,144 Increase, Up 14.4% from 2020
• PERS - $88,094 Increase, Up 9.8% from 2020
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Rates Per NJ Pension Website https://www.nj.gov/treasury/pensions/2021-employer-billing.shtml
Local Employer contribution rate changes:
• PERS – 15.11% compared to 13.69% in 2020
• PFRS – 32.37% compared to 29.8% in 2020
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Health Care Insurance
FY 2021 Health Care Appropriation total of $6.2 Million which is net of:• Current Employee/Retiree Premium Cost Sharing ($893K)
• Offset from Sewer $217k and Building Dept. $100k
• CMS Drug Subsidy and rebates $101,663
$265,000 increase in 2021
• Broker went out to market for proposals.
• Town converted to Self Insured from fully-insured in 2018; No profit to Insurance Provider
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FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Debt Service (Operating Budget)
Standard & Poor’s Credit Rat ing – “ AA (Posit ive Outlook)”
Principal Debt Payment Obligat ions paid down by $2.3M in FY 2020.
• $2,370,000 scheduled principal payment this year.
Net Debt Outstanding as of 12/ 31/ 20 - $26,002,690
• General Obligation Bonds - $20 million
• Bond Anticipation Notes - $6 million
Total Net Debt to Equalized Valuat ion ($3,005,684,497): 0.86%
Total Net Debt DECLINED BY $18.8 mill ion or 42% since FY 2010
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FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Debt Service (Sewer Utility)
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Principal Debt reduced by $1 ,575,000 in FY 2020.
• 1,070,000 scheduled to be paid off this year (includes $500,000 payments on BAN’s)
Sewer Util ity Debt Outstanding as of 12/ 31/ 20 - $3,454,681
• Long Term Debt - $2,532,681
• Bond Anticipation Notes - $922,000
“ Pay-A-You-Go” - Util ity Budget includes $250,000 for Capital Projects
No NEW Sewer Util ity Debt - 9TH year in a ROW!
FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Capital ProjectsTotal allocated for new capital funding is $4,398,930 which includes:
• $2,285,530 in sidewalk, curb and roadway
improvements
• $105,000 for vehicles and heavy equipment
• $590,900 Park & Playground improvements
• $5,000 for Dam improvements
• $240,000 for Building improvements
• $875,000 Fire Equipment
• $297,500 Section 20
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FY 2021 MUNICIPAL BUDGET PRESENTATION THE TOWN OF MORRISTOWN
Q&A