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Budget Options

Budget Options. May 12, 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 12, 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 Case Tax Rate Surplus 000’s$ 1,850 1,760 Pension Deferral PERS - -- PFERS --- BOTH 0 391 Added Cost Cuts People Salaries -- -- Other -- -- Tax Dollars 1036310060 Tax Rate 0.556 0.0 Tax Rate Increase 3.1% 0% Berkeley Heights Budget Pre-lim-2009

  5. 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 1.900,000 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 3.1 * 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 6,180021 Operating Expenses 2,389,381 2,405,590   Unclassified 1,119,000 1,128,500 Insurance (Health +) 2,177,702 2,435,000   Social Security 429,570 526,000 Pension PERS+PFERS 763,314 865,191 Sub-total $13,004,001 13,535,292  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   $16,373,99516,806,860

  9. Back-Up Data Increases 2009 Base over 2008 expenditures Health Insurance delta = $257,298 Social Security delta = $ 96,430 Pension Total delta = $ 101,877 Other delta = $ 226,653 total increases = $ 682,258 out of total increase of $ 432,865 because there are decreases note could defer $391,000 and lower expenditure total to $16,415,860 and net increase over 2008 to $ 41,865 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 6,180021 Operating Expenses 2,389,381 2,405,590   Unclassified 1,119,000 1,128,500 Insurance (Health +) 2,177,702 2,435,000   Social Security 429,570 526,000 Pension PERS+PFERS 763,314 470,191 Sub-total $13,004,001 13,144,292  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   $16,373,99516,415,860

  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 10,363,000 TOTAL REVENUE $16,373,984 $16,806,860 Berkeley Heights Budget July 8, 2008.

  12. REVENUE COMPARISON- DEFERRAL CASE GENERAL REVENUE 2008 2009 ZERO TAX 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 10,060,000 TOTAL REVENUE $16,373,984 $16,415,860 Berkeley Heights Budget July 8, 2008.

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

  14. INCREASED MAJOR COST IMPACTS PENSIONS $ 284,314 police $ 192,020 employees $ 92,294 POLICE S/W (contract) $ 244,177 HEALTH INSURANCE $ 195,910 LOSS IN STATE AID $ 185,820 TOTAL $ 910,221 Berkeley Heights Budget July 8, 2008.

  15. 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.

  16. 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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