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Budget Options

Budget Options. May 19, 2009. 5 Options are considered. Base: No pension deferrals, 2% raise, no layoffs Option A: Defer ½ PERS payment Option B: Defer ½ PFRS payment Option AB: Defer both PERS and PFRS, put savings in surplus

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Budget Options

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  1. Budget Options May 19, 2009

  2. 5 Options are considered • Base: No pension deferrals, 2% raise, no layoffs • Option A: Defer ½ PERS payment • Option B: Defer ½ PFRS payment • Option AB: Defer both PERS and PFRS, put savings in surplus • Option A*: Layoff 1 police officer, eliminated raises, find $34K of other cuts

  3. Pension Deferrals • All deferrals would be paid in 2012 at apparently no interest. • Not sure if PFRS can be deferred as we did not request LFB approval.

  4. 2009 Scenarios for Tax Rate Increases Over 2008 Base Zero Alternate Case Tax Rate Deferral Surplus 000’s$ 1,850 1,728 1459 Pension Deferral PERS - -- PFERS --- BOTH 0 391 391 Added Cost Cuts People Salaries -- -- Other -- -- Tax Dollars 1032310060 10323 Tax Rate 0.554 0.0 0.554 Tax Rate Increase 2.6% 0% 2.6% Berkeley Heights Budget Pre-lim-2009

  5. 5-19-09 From draft # 8 workup Comparison of Options

  6. ANALYSIS OF SURPLUS (year end) YEAR REVENUE FUND USAGE BALANCE ----- 2,749,330 2002 1,900,000 2,437,276 2003 1,000,000 2,222,893 2004 1,850,000 2,190,952 2005 1,850,000 2,030,178 2006 1,850,000 2,001,254 2007 1,850,000 2,126,771 2008 1,512,000 1.949,000 2009 1,850,000 ---- Berkeley Heights Budget July 8, 2008.

  7. ANNUAL CHANGE IN LOCAL VS. TOTAL TAX • YEAR % TOTAL % LOCAL • 4 9 • 7 8.2 • 8.9 7.8 • 1.6 2.9 • 2.5 0 • * 0 or 2.6 * 1.09% school, 5.3 % county Berkeley Heights Budget July 8, 2008.

  8. COSTS OF BERKELEY HEIGHTS SERVICES A. Expenditures (inside 3.5% CAP) 2008 2009 Base   Salary & Wages 6,166,034 6,172,821 Operating Expenses 2,389,381 2,255,676   Unclassified 1,119,000 1,128,500 Insurance (Health +) 2,177,702 2,421,000   Social Security 429,570 526,000 Pension PERS+PFERS 763,314 865,191 Sub-total $13,004,001 13,369,188  B. Operations Outside 3.5% CAP Debt Service (P + I) 1,018,798 1,003,384 Appeal of Taxes 50,000 10,000 Library 1,143,039 1,143,374 Capital Improvement Fund 130,000 5,000 Other 193,157 419,810 Sub-total $ 2,534994 2,581,568 C. Reserve for Uncollected Taxes $ 835,000 700,000 TOTAL APPROPRIATED EXPENSE   $16,373,99516,650,756 Draft #8 adjusted 5-189-09

  9. Back-Up Data Increases 2009 Base over 2008 expenditures Health Insurance delta = $213,250 Social Security delta = $ 96,430 Pension Total delta = $ 101,877 Other delta = $ 0 total increases = $ 411,557 out of total increase of $ 276,761 because there are decreases that offset the increases note could defer $391,000 and lower expenditure total to $16,259,756 and net decrease over 2008 to $114,239 Berkeley Heights Budget July 8, 2008.

  10. COSTS OF BERKELEY HEIGHTS SERVICES-deferral A. Expenditures (inside 3.5% CAP) 2008 2009 Zero Tax   Salary & Wages 6,166,034 6,172,821 Operating Expenses 2,389,381 2,255,676   Unclassified 1,119,000 1,128,500 Insurance (Health +) 2,177,702 2,421,000   Social Security 429,570 526,000 Pension PERS+PFERS 763,314 470,191 Sub-total $13,004,001 12,978,188  B. Operations Outside 3.5% CAP Debt Service (P + I) 1,018,798 1,003,384 Appeal of Taxes 50,000 10,000 Library 1,143,039 1,143,374 Capital Improvement Fund 130,000 5,000 Other 193,157 419,810 Sub-total $ 2,534994 2,581,568 C. Reserve for Uncollected Taxes $ 835,000 700,000 TOTAL APPROPRIATED EXPENSE   $16,373,99516,259,756

  11. REVENUE COMPARISON GENERAL REVENUE 2008 2009 BASE SURPLUS $ 1,512,270 1,850,000 LOCAL $1,428,900 1,246,900 STATE AID $ 2,166,395 2,012,530 CONSTRUCTION CODE $ 650,000 448,000 OTHER $ 702,707 891,978 SUB-TOTAL $6,460,252 6,449,408 TAXES $9,913,732 10,201,347 TOTAL REVENUE $16,373,984 $16,650,756 Berkeley Heights Budget July 8, 2008.

  12. REVENUE COMPARISON- DEFERRAL CASE GENERAL REVENUE 2008 2009 ZERO TAX SURPLUS $ 1,512,270 1,722,000 LOCAL $1,428,900 1,246,900 STATE AID $ 2,166,395 2,012,530 CONSTRUCTION CODE $ 650,000 448,000 OTHER $ 702,707 770,326 SUB-TOTAL $6,460,252 6,199,756 TAXES $9,913,732 10,060,000 TOTAL REVENUE $16,373,984 $16,259,756 Berkeley Heights Budget July 8, 2008.

  13. Question and Answer Period Berkeley Heights Budget July 8, 2008.

  14. COMPARATIVE SUMMARY ’07 VS. ‘08 20072008 $ $ APPROPRIATION 16,256,575.93 16,361,365.92 REVENUE 6,399,179.07 6,433,799.27 TAX 9,857,395.96 9,927,566.65 ASSESSMENT 1,836,199,720 1,823,659,020 TAX RATE per $100 $0.54$0.54 Berkeley Heights Budget July 8, 2008.

  15. REVENUE GENERAL REVENUE$ SURPLUS $ 1,512,270 LOCAL FEES/PERMITS $ 694,000 OTHER ** $ 734,900 STATE AID $ 2,096,385 (adjusted) CONSTRUCTION CODE $ 650,000 ( ~ 50 /50 ) OTHER *** $ 690,077 SUB-TOTAL $ 6,433,799 TAXES $ 9,927,566 TOTAL REVENUE $ 16,361,365 ** 16.9 lic, 145 court, 90 int. taxes, 299 int. invest., 184 sewer (all 000’s $) *** grants 22.8,fire safety 25.3,cable 47, rents 215,cap surplus 80,del taxes 300 Berkeley Heights Budget July 8, 2008.

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