WHERE DO OUR TAXES GO?

1. WHERE DO OUR TAXES GO? Presented by Mayor David Scapicchio

2. WHERE DO OUR TAXES GO? • Members of the Township Finance Committee: • Steve Rattner, Township Council • Russ Tepper, Township Council • Roy Hansel, Resident

3. Members of Council: Ray Perkins, Council President Phil Tobey, Council Vice-President Rob Greenbaum Colleen Labow Steve Rattner Alex Roman Russ Tepper Bill Sohl, Township Administrator Sherry Jenkins, Chief Financial Officer WHERE DO OUR TAXES GO?

4. WHERE DO OUR TAXES GO?

5. WHERE DO OUR TAXES GO? • The average property tax bill in 2007 for Mt. Olive Township was approximately $8,161 ($199,000 average assessment) • Of that, $1,831 or about 22% went to the Township for municipal services • The remainder – $6,330 – went to the schools ($5,463) and the County ($867) • This breakdown is fairly typical for municipalities in New Jersey

6. WHERE DO OUR TAXES GO? • What does the average property owner get for $1,831 per year?

7. WHERE DO OUR TAXES GO? • Professionally trained firefighters and police at your call 24/7 protecting you and your family • 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 and maintenance of the municipal beach and lake to enjoy

8. WHERE DO OUR TAXES GO? • 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 • Cleaning, maintenance and repair of public streets • Monitoring of development and home improvements to ensure work is done in accordance with all building codes

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

10. WHERE DO OUR TAXES GO?

11. WHERE DO OUR TAXES GO? • 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 $915 per year • Debt service and capital is 16% of the municipal budget or $293 per year • The reserve for uncollected taxes which allows us to have enough cash to meet our bills represents 10% of the budget or about $183 per year

12. WHERE DO OUR TAXES GO? • 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 $183 per year

13. WHERE DO OUR TAXES GO? • The average homeowner pays the following annual costs for these services: • 1. Library - $88/year • 2. Turkey Brook Park Maintenance - $15/year and Turkey Brook Park Construction - $65/year • 5. Police, Fire, Rescue Services - $439/year • 6. Road, Park and Building Maintenance - $183/year

14. WHERE DO OUR TAXES GO? • Expense increases from 2007 to 2008: • 1. Debt Service - $646,821 • 2. Salaries - $319,405 • 3. Library - $44,813 • 4. Pension - $399,792 • 5. Fleet Maintenance - $88,280 • 6. Departmental Operating Budgets - $83,058 • 7. Utilities - $194,750

15. WHERE DO OUR TAXES GO? • Expense decreases from 2007 to 2008: • 1. Reserve for Uncollected Taxes - $521,710 • 2. General/Group Insurance - $79,775

16. WHERE DO OUR TAXES GO? • 2007 VERSUS 2008: • The total budget for 2007 = $25,532,124 and for 2008 = $26,858,169 • This year the proposed municipal tax rate increased 9.65% or 4.1 tax points which equals about $196 per year or $16 per month to the average homeowner • No services have been eliminated or reduced

17. WHERE DO OUR TAXES GO?