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Home My Public Portal About2023 Municipal Budget Presentation1 00,6 BOROUGH OF FRANKLIN LAKES 2023 MUNICIPAL BUDGET PRESENTATION APRIL 18, 2023 •Adopt prudent budget based on established objectives that will provide high level of services to taxpayers. •Objectives •Maintain appropriate surplus level •Reduce debt over time •Minimize tax increases in compliance with applicable caps The Borough is responsible for collecting all property taxes. 15.34%of your property taxes are used for municipal purposes. The remainder of your bill is for your local and regional schools, and County government purposes. (Percentages based on 2022 tax bills) Local Schools40.43% Regional Schools27.14% County15.04% Library 2.05%%Municipal 15.34% Lowest Municipal Tax Rates in Bergen County (2022) Ratio of Municipal Assessed to Equalized Rank Municipality Tax Rate True Value Tax Rate 1 Alpine 0.186 105.85 0.197 2 Franklin Lakes 0.258 94.97 0.245 3 Wyckoff 0.268 98.98 0.265 4 Old Tappan 0.355 96.81 0.344 5 Upper Saddle River 0.438 81.30 0.356 Ratio of County Municipal Assessed to Equalized Rank Municipality Tax Rate True Value Tax Rate 2 Franklin Lakes 0.258 94.97 0.245 3 Wyckoff 0.268 98.98 0.265 5 Upper Saddle River 0.438 81.30 0.356 7 Saddle River 0.391 104.23 0.408 8 Mahwah 0.478 88.90 0.408 10 Waldwick 0.531 88.83 0.472 11 Ramsey 0.511 93.30 0.477 23 Ridgewood 0.626 84.43 0.529 25 Ho-Ho-Kus 0.642 83.50 0.536 26 Glen Rock 0.632 87.55 0.553 27 Oakland 0.548 102.66 0.563 29 Allendale 0.577 100.22 0.578 32 Midland Park 0.794 80.35 0.638 Revenues Budget 2022 Budget 2023 Surplus 2,450,000 1,400,000 Total Miscellaneous Revenues 6,114,274*4,420,517 Receipts from Delinquent Taxes 245,000 496,000 Local Tax for Municipal Purposes 13,007,680 13,724,392 Total General Revenues $21,816,954 $20,040,909 *includes $1,163,810 from American Rescue Plan Act grant 2020 2021 2022 Actual Actual Actual 2023 2024 Realized Realized Realized Budget Projected Surplus Anticipated $ 1,100,000 $ 2,000,000 $ 2,450,000 1,400,000 1,400,000 Miscellaneous Revenues Local Revenues 1,239,805 1,436,173 1,286,165 1,194,749 1,475,000 State Aid 1,781,701 1,781,701 1,781,701 1,886,604 1,781,700 Uniform Construction Code Fees 750,474 893,301 652,770 652,700 655,000 Shared Services/Public & Private Revenues 110,617 158,594 177,158 22,467 65,000 Other Special Items 651,022 897,751 2,164,400*663,997 147,725 Subtotal Miscellaneous Revenues 4,533,619 5,167,485 6,062,194 4,315,613 4,124,425 Receipts from Delinquent Taxes 532,262 497,698 255,146 496,000 500,000 Local Tax for Municipal Purposes 13,642,251 14,358,844 14,116,928 13,724,392 14,244,175 Total General Revenues $ 19,808,132 $ 22,024,027 $ 22,884,268 $ 20,040,909 20,268,600 *includes $1,163,810 from American Rescue Plan Act grant Appropriations Final 2022 2023 Operating Expenses: Salaries & Wages 6,285,394 6,540,530 Other Expenses 8,898,270 8,985,745 Other Appropriations -Pension ($1,565,635) & social security payments ($307,000)1,705,000 1,872,635 Capital Improvements 2,463,810*200,000 Debt Service –bond & note principal & interest 1,612,000 1,592,000 Reserve for Uncollected Taxes 850,000 850,000 Total General Appropriations $21,816,954 $20,040,909 *includes $1,163,810 from American Rescue Plan Act grant Total of $20.04 million includes “non-discretionary” items: •$2.15 million –Insurance including group medical ($1.56 million) •$1.88 million –Pension and social security •$1.62 million –Library •$1.59 million –Garbage and recycling •$1.59 million –Debt service These items alone total $8.83 million –over 44% Salaries and Wages ($6.54 million), the majority of which are subject to contractual obligations, account for nearly 33% These fixed cost items account for nearly 77% of 2023 budget Net decrease in appropriations of $712,235 from 2022* Major increases •$691,000 –Garbage and Recycling Collection and Disposal •71% increase •$197,135 –Salaries and Wages •$150,635 –Pension •$89,969 –Library –statutory formula Total of $1,128,739 for these items alone All other appropriations decreased by $1,840,974, including: •$2,263,810 –Capital Improvements *not including $1,163,810 from American Rescue Plan Act grant 2020 Budget 2021 Budget 2022 Budget 2023 Budget 2024 Projected Salaries and Wages $ 6,017,366 $ 6,264,985 6,285,395 6,540,530 6,802,150 Other Expenses 7,946,205 8,381,962 8,823,055 8,985,744 9,165,450 Deferred Charges & Statutory Expenditures 1,473,717 1,535,000 1,707,480 1,872,635 2,031,000 Debt Service & Capital Improvements 2,410,500 3,006,000 4,075,810 1,792,000 1,420,000 Reserve for Uncollected Taxes 905,000 905,000 850,000 850,000 850,000 Total General Appropriations $18,752,788 $20,092,947 $21,741,740 $20,040,909 20,268,600 % of 2023 Total Budget Line Item Budget Budget Police –salaries and wages $3,387,415 16.90% Health Insurance costs 1,648,300 8.22% Library –operating costs 1,619,087 8.08% Debt Service 1,592,000 7.94% Solid Waste Collection/Disposal Costs 1,584,000 7.90% Pension Costs –all employees 1,565,635 7.81% Public Works –salaries and wages 1,191,380 5.94% Amount to be Raised by Taxation $13,724,392 Net Assessed Valuations $4,513,665,700 Municipal Tax Rate •$0.304 per $100 of assessed value •$3.04 per $1,000 of assessed value •$0.011 per $100 of assessed value increase from 2022 5.51%increase in amount to be raised by taxation 3.79%increase in amount of municipal taxes paid Impact on Average Home assessed at $1,063,000 •$3,232 -2023 •$3,114 -2022 •$3,107 -2021 •$3,093 -2020 •$3,029 -2019 •$2,997 -2018 •$2,997 -2017 •$2,987 -2016 8.2%increase in 8 year period since 2016 •Average increase of 1.03% per year State imposes 2% cap on increase in the amount to be raised by taxation from prior year Exclusions from cap •Includes allowable increases in pension, debt service and value of new construction •With exclusions, 2022 budget is under cap by $171,016 Also permitted to “bank” amount that budgets from 3 prior years were under cap •Cap bank total from 2020-2022 -$1,202,751 Proposed 2022 budget tax levy cap balance is $1,373,767 Decrease debt •Budget is consistent with Borough’s Capital Projects and Debt Service Plan •Appropriates $200,000 in the Capital Improvement Fund in the Operating Budget •Capital Projects and Debt Service Analysis meets the budget objective of reducing Borough debt over time •Steady reduction in debt –Over $8 million decrease from high of $16.7 mil in 2008 •Current debt -$8,565,000 Stabilize use of surplus •Mayor and Council amended Fund Balance policy to reflect policy and practice of maintaining fund balance of approximately 15 to 20% of the previous year’s Operating Budget •Fund Balance at end of 2022 was $3,725,325, or 17.08% of the 2022 Realized Budget Fund capital expenditures in operating budget •$200,000 allocated in 2022 budget •Funds also available from Reserve from Sale of Assets •Budget anticipates that all capital expenditures will be funded through the Operating Budget and the Reserve from Sale of Assets in 2022 •No further debt will be incurred Control expenses •Continue to reinforce message of fiscal responsibility in all departments BOROUGH OF FRANKLIN LAKES 2023 Municipal Budget Garbage & Recycling Costs UP 71 Increase in Municipal Taxes On Average Home of taxes pay for all municipal services Budget as Introduced - Public Hearing on April 18,2023