Haddon Heights 2010 Municipal Budget Introduction<br />Mayor Scott Alexander<br />Borough CFO Sharon Smith<br />April 20th...
State of Haddon Heights<br />CPI in the Philadelphia area dropped 55% 2006 to 2007, then again 110% 2008 to 2009, now up i...
Budget Process<br />Stayed the course for fiscal responsibility<br />Found additional expense reductions to offset loss of...
What are others Doing?<br />Courierpostonline April 12th, 2010<br />“Furlough or layoff plans are being analyzed in dozens...
What we are Doing!<br />Because we started implementing a sound fiscal policy in 2008 we will not:<br />Lay off employees,...
2010 Budget Summary<br />Miscellaneous Revenues*: down $179,442 (12.1%) to $1.30m<br />State Revenue is down $193,885 (20....
Municipal Budget History & Share<br />* Excludes Grants<br />2010 Haddon Heights Budget Introduction<br />
Miscellaneous Revenues<br />Misc Revenue ($1.505m) consist of: 1) Non-State revenues (license fees, permits fees, Municipa...
State Revenues<br /><ul><li>The State cut $193,885 (20.4% of 2009 State Revenue), which represents 15% of 2010 Misc Revenue.
State Revenues have dropped a total of $716,000 (48%) since 2007
Extraordinary Aid was not elected in 2008 due to its requirements of zero cash surplus</li></ul>COMPTRA – Consolidated Pro...
Surplus<br />In 2010 we are using $75,000 or 16.7% less in available surplus then in 2009. Because of this and the fact th...
Property Tax Rate & Savings<br />The 2010 tax rate is projected to be down (.4%) or $.01 versus 2009 for a total of $2.54 ...
Appropriations<br /><ul><li>Total appropriations are down $47,958 (.64%) versus 2009
Overhead Expenses have been reduced by $63,437 (2.19%) as a result of the decrease in State revenues.
Largest expense increases include Employee Group Health (18%) and Workers Compensation (40%)
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Haddon Heights 2010 Budget Introduction by Mayor Alexander on April 20th, 2010

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Mayor Alexander and Borough CFO Sharon Smith introduced a 2010 Municipal Budget on April 20th announcing a projected decrease in property taxes for the second year in a row and the first back to back property tax reduction in the Borough in 68 years. The reduction is projected to be (.4%) or a $30 savings for a home assessed at $295,000. Because of the Governing Body's continued focus on fiscal responsibility and running the Borough like a business, they were able to handle a 20% reduction in aid from the State, while not layoff or furlough employees nor cut services to provide a 2.46% increase in the Municipal tax levy. The School District tax levy request increased 2.48% from 2009 and the County is projected to increase 6% over last year.

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Haddon Heights 2010 Budget Introduction by Mayor Alexander on April 20th, 2010

  1. 1. Haddon Heights 2010 Municipal Budget Introduction<br />Mayor Scott Alexander<br />Borough CFO Sharon Smith<br />April 20th, 2010<br />
  2. 2. State of Haddon Heights<br />CPI in the Philadelphia area dropped 55% 2006 to 2007, then again 110% 2008 to 2009, now up in March, 2010<br />The Unemployment rate increased 108% from 2006 to 2010 in the State of New Jersey<br />Haddon Heights Tax rate growth in 2009 slowed to 14.9% of the growth rate in 2006<br />Tax lien property sales decreased slightly in 2009 and there is an expectation it will be lower in 2010<br />The foreclosure rate in Haddon Heights was flat 4th Q ‘09 to 1xt Q ’10, versus a 7% increase for all U.S.<br />2010 Haddon Heights Budget Introduction<br />
  3. 3. Budget Process<br />Stayed the course for fiscal responsibility<br />Found additional expense reductions to offset loss of State Aid<br />Worked with Department Heads to finalize and sign off on individual Department budgets<br />Special Budget Committee reviewed and endorsed the introduced budget<br />Will not use “gimmicks” versus sound fiscal budgeting<br />Planned for future years<br />2010 Haddon Heights Budget Introduction<br />
  4. 4. What are others Doing?<br />Courierpostonline April 12th, 2010<br />“Furlough or layoff plans are being analyzed in dozens of towns including Medford, Mount Laurel, Collingswood, Haddonfield, Gloucester Township and West Deptford. Such proposals have to be approved by the state's Civil Service Commission”<br />“Local leaders in towns such as Collingswood, Mount Laurel, Moorestown, Medford and Medford Lakes are also seeking wage freezes or benefit contributions from unionized employees”<br />The Retrospect April 2nd, 2010<br />“Haddon Township Commissioners adopt accelerated tax sale plan”<br />“…a process already in use in neighboring Collingswood”<br />2010 Haddon Heights Budget Introduction<br />
  5. 5. What we are Doing!<br />Because we started implementing a sound fiscal policy in 2008 we will not:<br />Lay off employees,<br />Implement furloughs, or<br />Use accelerated tax sales<br />Non-union employees will start contributing 1.5% toward health benefits effective May 22nd<br />We froze non-union salaries in 2009 and in 2010 have made inflation adjustments<br />Our employees and residents will experience a continued quality of life in the Borough of Haddon Heights<br />2010 Haddon Heights Budget Introduction<br />
  6. 6. 2010 Budget Summary<br />Miscellaneous Revenues*: down $179,442 (12.1%) to $1.30m<br />State Revenue is down $193,885 (20.4%) to $754,209<br />Overhead Expenses: down $63,437 (2.19%) to $2.82m<br />General Obligations to Appropriations Ratio: down to 4.94%<br />Projected Municipal Tax Levy: up 2.46% to $5.18m<br />Projected Blended Tax Levy:<br />Conservatively we are projecting that the County will increase their tax levy request by 6% versus 2009. The School district is requesting a 2.64% tax levy increase for their 2010/2011 budget. These when combined with the Muni projected 2.46% will provide a blended 2010 tax rate down (.4%).<br />* Excludes Grants<br />2010 Haddon Heights Budget Introduction<br />
  7. 7. Municipal Budget History & Share<br />* Excludes Grants<br />2010 Haddon Heights Budget Introduction<br />
  8. 8. Miscellaneous Revenues<br />Misc Revenue ($1.505m) consist of: 1) Non-State revenues (license fees, permits fees, Municipal Court fees, Interest on Taxes, Interest on Investments, Cable Franchise Fees, UCC, Rentals, Recreation Programs, and PILOTS), 2) Grants, and 3) State Revenue<br />State revenues are down $193,885 (20.4%). Non-State revenues are up slightly by $14,000. Court revenues are growing, and rental and program fees are just starting. We expect UCC fees to increase as the economy picks up. Overall we expect a jump in non-State revenues in 2011 to offset continued declines in State Revenues.<br />2010 Haddon Heights Budget Introduction<br />
  9. 9. State Revenues<br /><ul><li>The State cut $193,885 (20.4% of 2009 State Revenue), which represents 15% of 2010 Misc Revenue.
  10. 10. State Revenues have dropped a total of $716,000 (48%) since 2007
  11. 11. Extraordinary Aid was not elected in 2008 due to its requirements of zero cash surplus</li></ul>COMPTRA – Consolidated Property Tax Relief Aid<br />ERT – Energy Receipts Tax<br />2010 Haddon Heights Budget Introduction<br />
  12. 12. Surplus<br />In 2010 we are using $75,000 or 16.7% less in available surplus then in 2009. Because of this and the fact that our appropriations are down, the Acid Test Ratio has increased to 5.33%.<br />The Acid Test Ratio is the measure of how much the Borough is putting into savings after paying for appropriations in any given year. The Borough did not save in 2005, 2006 or 2007 but used all available cash in order to qualify for extraordinary aid.<br />Cash Surplus<br />60%<br />51%<br />46%<br />100%<br />* Includes anticipated 2009 grant payments<br />Acid Test Ratio<br />2010 Haddon Heights Budget Introduction<br />
  13. 13. Property Tax Rate & Savings<br />The 2010 tax rate is projected to be down (.4%) or $.01 versus 2009 for a total of $2.54 per $100 of assessed value. A home assessed at $295,000, which is the averaged assessed value of homes in Haddon Heights will see a $30 reduction in their 2010 tax bill.<br />If all taxing entities come in as projected, then this is the first back to back annual property tax reduction in Haddon Heights since 1941/1942, 68 years ago.<br />The average annual blended property tax increase from 2004 to 2008 was 4.95%, which is close to the 100 year average of 5.1%.<br />If nothing changed in how this Borough was run starting in 2008 , the rate would have followed its course and increased 4.95% in 2009 (versus a -2.2% reduction) and again 4.95% in 2010 (versus a -.4% reduction)<br />This means a $295,000 assessed value homeowner would have paid an additional $1,657 in property taxes and a $500,000 homeowner $2,810 in extra property taxes over the last two years.<br />2010 Haddon Heights Budget Introduction<br />
  14. 14. Appropriations<br /><ul><li>Total appropriations are down $47,958 (.64%) versus 2009
  15. 15. Overhead Expenses have been reduced by $63,437 (2.19%) as a result of the decrease in State revenues.
  16. 16. Largest expense increases include Employee Group Health (18%) and Workers Compensation (40%)
  17. 17. Largest decreases include Capital Improvement Fund (-67%) and Unemployment (-89%)</li></ul>2010 Haddon Heights Budget Introduction<br />
  18. 18. General Obligations<br />Haddon Heights General Obligations consist of Long-Term Bonds, Green Acres loans, Bond Anticipation Notes (BAN) and Temporary Anticipation Notes (TAN)<br />An objective of the Office of the CFO is to keep the ratio of General obligations to appropriations (minus RUT & Grants) to 7% or lower.<br />Bonds – the Municipality has not bonded since 2002 and in 2010 we are bonding 8 years of BANs<br />Series 1997 – rolling off 2010<br />Series 2002 – rolling off 2018<br />Series 2010 ($2.703 million) – rolling off 2021<br />Series 2019 ($3.05 million) – includes capital approved from 2009 to 2018<br />Green Acres<br />1998 – rolling off 2013<br />2004 – rolling off 2022<br />BAN<br />2007 - $35,700; 2008 - $104,000; 2009 - $71,800; 2010 - $54,100; 2011 - $27,260<br />TAN<br />2007 - $41,673; 2008 - $59,736; 2009 - $0; 2010 - $0<br />2010 Haddon Heights Budget Introduction<br />
  19. 19. General Obligations to Appropriations Ratio<br />The ratio for all General Obligations will be held to 7% or less going forward. This will ensure appropriate allocation of revenue and control on obligations<br />Haddon Heights ratio is better then both surrounding Municipalities and the State<br />These ratios do not include paying down BAN principal using Project Garnet proceeds<br />General Obligations to Appropriations Ratio<br />2019 Series Starts<br />2002 Series rolls off<br />7%<br />2010 series rolls off;<br />1997 series rolls off; 2010 Starts<br />2010 Haddon Heights Budget Introduction<br />
  20. 20. Project Garnet Net Cash Use<br />Pay down BAN principal prior to 2019 Bond Series ordinance, thereby reducing general obligation ratio<br />Fund specific future capital requests directly versus using BANs and Bonds<br />Offset Municipal tax levies through cash surplus use or line item appropriations<br />Invest into other economic development opportunities<br />2010 Haddon Heights Budget Introduction<br />Project Garnet Net Cash Forecast<br />
  21. 21. Summary<br />Because we started implementing a sound fiscal policy in 2008 we will not:<br />Lay off employees,<br />Implement furloughs, or<br />Use accelerated tax sales<br />If all taxing entities come in as projected, then this is the first back to back annual property tax reduction in Haddon Heights since 1941/1942, 68 years ago. (2.2%) in 2009 and (.4%) in 2010<br />If nothing changed in how this Borough was run starting in 2008 , the rate would have followed its course and increased 4.95% in 2009 (versus a -2.2% reduction) and again 4.95% in 2010 (versus a -.4% reduction). This means a $295,000 assessed value homeowner would have paid an additional $1,657 in property taxes and a $500,000 homeowner $2,810 in extra property taxes over the last two years.<br />Objectives for a sound fiscal policy are to keep the General Obligations to Appropriations Ratio below 7% and increase the Acid Test Ratio through higher cash surplus and controlled appropriations.<br />2010 Haddon Heights Budget Introduction<br />

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