Post on 26-Jul-2020
Township of EdisonNew Jersey2020 Budget Presentation
Introduction
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MayorThomas Lankey
Council Members
Council PresidentJoyce Ship-Freeman
Vice PresidentSamip Joshi
Richard BrescherJoseph CoyleRobert Diehl
Alvaro GomezAjay Patil
2019 Tax Rate ComparisonSource: NJ Department of Treasury 2019 Abstract of Ratables for Middlesex County
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County Tax County Open Space Tax
District School Tax
Reg. Consol. & Joint School Tax
Municipal Local Purpose Tax
Municipal Open Space Tax
Municipal Library Tax General Tax Rate County Equalization
RatioEffective Tax
Rate
Cranbury Twp 0.372 0.032 0.996 0.000 0.348 0.020 0.031 1.799 96.82 1.734
South Brunswick Twp 0.951 0.080 3.040 0.000 0.887 0.040 0.087 5.085 37.66 1.911
Monroe Twp 0.429 0.036 1.463 0.000 0.474 0.015 0.039 2.456 83.43 2.048
Old Bridge Twp 0.838 0.071 2.987 0.000 0.980 0.000 0.076 4.952 43.16 2.134
South Plainfield Boro 0.998 0.084 3.594 0.000 1.321 0.000 0.092 6.089 35.86 2.171
Piscataway Twp 0.365 0.031 1.257 0.000 0.621 0.000 0.034 2.308 95.95 2.205
Edison Twp 0.867 0.073 3.108 0.000 1.280 0.000 0.080 5.408 41.11 2.217
Plainsboro Twp 0.369 0.031 1.508 0.000 0.347 0.009 0.034 2.298 96.98 2.227
South River Boro 1.240 0.105 4.334 0.000 2.443 0.000 0.115 8.237 28.91 2.372
New Brunswick City 0.364 0.031 0.927 0.022 1.046 0.000 0.033 2.423 99.36 2.374
Sayreville Boro 0.752 0.064 2.905 0.000 1.423 0.020 0.069 5.233 48.05 2.484
Metuchen Boro 0.809 0.068 3.684 0.000 1.328 0.000 0.073 5.962 44.29 2.628
Helmetta Boro 0.420 0.036 1.908 0.000 0.725 0.000 0.000 3.089 86.16 2.631
Carteret Boro 0.372 0.032 1.150 0.000 1.175 0.030 0.034 2.793 96.27 2.657
South Amboy City 0.372 0.032 1.148 0.000 1.186 0.000 0.034 2.772 96.41 2.666
East Brunswick Twp 1.463 0.123 7.115 0.000 2.164 0.019 0.136 11.020 24.36 2.679
Perth Amboy City 0.378 0.032 0.803 0.000 1.743 0.000 0.033 2.989 96.59 2.841
Woodbridge Twp 1.289 0.109 5.829 0.000 3.058 0.000 0.119 10.404 27.82 2.877
Middlesex Boro 1.129 0.095 5.263 0.000 2.575 0.000 0.105 9.167 31.78 2.899
Milltown Boro 0.735 0.062 3.731 0.000 1.466 0.000 0.068 6.062 48.78 2.945
Spotswood Boro 0.396 0.034 1.893 0.000 0.962 0.000 0.036 3.321 91.26 3.002
North Brunswick Twp 0.671 0.057 3.548 0.000 1.302 0.030 0.060 5.668 54.28 3.052
Dunellen Boro 0.340 0.029 1.893 0.000 0.810 0.000 0.031 3.103 106.34 3.265
Jamesburg Boro 0.676 0.057 3.584 0.000 1.806 0.000 0.062 6.185 52.85 3.269
Highland Park Boro 0.878 0.074 5.176 0.000 2.207 0.000 0.080 8.415 40.78 3.422
2019 Taxes in Other Towns
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A. Effective Tax Rate From the 2019 Middlesex County Abstract of Ratables
B. 2019 Taxes equals Effective Rate x Market Value of $437,200
C. Average Household Market Value is $437,200 and an Assessed Value of $179,900
Taxes(1)Effective
RateCranbury Twp 7,583 1.734South Brunswick Twp 8,356 1.911Monroe Twp 8,952 2.048Old Bridge Twp 9,331 2.134South Plainfield Boro 9,491 2.171Piscataway Twp 9,641 2.205Edison Twp 9,692 2.217Plainsboro Twp 9,736 2.227South River Boro 10,371 2.372New Brunswick City 10,379 2.374Sayreville Boro 10,862 2.484Metuchen Boro 11,488 2.628Helmetta Boro 11,502 2.631Carteret Boro 11,615 2.657South Amboy City 11,656 2.666East Brunswick Twp 11,715 2.679Perth Amboy City 12,422 2.841Woodbridge Twp 12,576 2.877Middlesex Boro 12,676 2.899Milltown Boro 12,878 2.945Spotswood Boro 13,124 3.002North Brunswick Twp 13,344 3.052Dunellen Boro 14,276 3.265Jamesburg Boro 14,291 3.269Highland Park Boro 14,961 3.422
2020 Tax Levy Breakdown
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2020 Average Household Market Value $476,240
Assessed Value $180,400
Total Tax Rate 5.656Total Taxes $10,203.42
School$5,711.46 55.97%
Municipal$2,475.09 24.26%
Library$156.95 1.54%
County$1,859.92 18.23%
Total Ratable Value
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YEARTOTAL NET
TAXABLE VALUE EQUALIZATION
RATE
Change in Equalization
RateEQUALIZED
VALUE 2014 7,028,001,196 49.83 -0.27 14,103,955,842 2015 7,064,183,022 48.19 -1.64 14,707,968,404 2016 7,066,343,552 45.07 -3.12 15,727,414,723 2017 7,096,395,983 44.60 -0.47 15,961,613,143 2018 7,144,232,527 43.21 -1.39 16,583,245,741 2019 7,194,825,765 41.11 -2.1 17,551,031,338 2020 7,261,505,066 37.88 -3.23 19,214,656,348
7*Proposed based on current budget presentations
County Equalized Value
2014 2015 2016 2017 2018 2019 2020
% Change 2019-2020
Carteret Boro 1,960,746,661 2,215,022,158 2,183,837,869 2,206,662,949 2,289,561,570 2,566,484,822 2,749,814,139 7.143%Cranbury Twp 1,561,888,554 1,467,820,463 1,559,947,896 1,525,848,058 1,630,433,601 1,825,460,397 1,904,783,157 4.345%Dunellen Boro 553,084,033 568,041,053 593,289,232 601,419,131 597,114,728 622,635,344 647,453,389 3.986%East Brunswick Twp 7,243,291,908 7,171,369,479 7,140,250,110 7,273,330,826 7,514,827,698 7,836,894,006 7,609,709,616 -2.899%Edison Twp 14,154,869,738 14,707,968,404 15,727,414,723 15,961,613,143 16,583,245,741 17,551,031,338 19,214,656,348 9.479%Helmetta Boro 204,530,949 201,665,013 202,885,809 211,121,144 207,868,241 217,881,336 216,995,616 -0.407%Highland Park Boro 1,293,534,693 1,275,352,475 1,298,309,135 1,271,362,906 1,362,134,950 1,408,215,339 1,413,751,393 0.393%Jamesburg Boro 432,680,593 443,277,283 435,350,539 443,026,923 446,595,618 450,458,510 438,678,405 -2.615%Metuchen Boro 2,121,701,671 2,190,249,757 2,283,881,743 2,343,041,025 2,380,520,174 2,402,189,438 2,488,765,476 3.604%Middlesex Boro 1,409,619,504 1,407,192,360 1,416,000,849 1,459,868,096 1,487,917,062 1,558,756,387 1,546,308,514 -0.799%Milltown Boro 865,099,041 857,046,578 858,236,200 882,224,874 892,836,364 914,675,588 965,595,580 5.567%Monroe Twp 6,719,653,264 7,373,011,854 8,097,648,564 8,647,586,697 8,915,617,575 9,309,723,058 9,627,707,884 3.416%New Brunswick City 3,173,887,778 3,276,893,385 3,209,818,471 3,340,868,868 3,447,263,259 3,465,543,605 3,555,744,868 2.603%
North Brunswick Twp 4,573,448,641 4,488,181,475 4,535,680,708 4,498,276,710 4,591,529,090 4,653,563,648 4,792,576,882 2.987%Old Bridge Twp 6,807,582,255 7,009,317,782 7,355,860,113 7,537,644,595 8,228,233,085 8,121,067,833 8,435,071,630 3.867%Perth Amboy City 3,204,095,668 3,206,794,805 3,074,156,692 3,264,101,142 3,178,439,442 3,462,346,579 3,507,489,171 1.304%Piscataway Twp 6,158,768,621 6,362,944,683 6,992,903,825 6,992,261,473 6,982,716,964 7,900,321,863 8,172,161,130 3.441%Plainsboro Twp 3,793,949,572 3,934,558,955 4,049,537,640 4,337,221,593 4,485,181,379 4,693,534,890 4,582,818,068 -2.359%Sayreville Boro 4,441,520,316 4,446,175,185 4,569,924,865 4,673,153,751 4,703,088,282 4,835,821,184 5,058,685,991 4.609%South Amboy City 836,937,513 829,336,800 859,767,737 842,359,951 877,872,449 930,577,455 958,844,813 3.038%South Brunswick Twp 7,857,568,028 7,979,299,583 8,751,413,961 8,677,593,421 8,842,349,546 10,203,328,560 10,057,209,811 -1.432%South Plainfield Boro 3,714,283,185 3,832,729,139 3,813,794,648 3,723,235,606 3,843,714,759 4,006,630,876 4,356,261,017 8.726%South River Boro 1,319,732,478 1,293,849,676 1,341,187,237 1,354,166,813 1,386,482,532 1,423,394,580 1,450,246,131 1.886%Spotswood Boro 763,687,429 773,106,424 779,306,164 785,955,400 793,187,090 819,444,152 854,448,456 4.272%Woodbridge Twp 10,754,813,319 10,844,503,459 11,525,153,357 10,713,831,035 10,913,703,479 11,549,228,325 11,849,664,473 2.601%
95,920,975,412 98,155,708,228 102,655,566,087 103,567,776,130 106,582,434,678 112,729,209,113 116,455,441,958 3.305%
Levy Cap Calculation
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Levy CAP Calculation ADJUSTED TAX LEVY 95,928,036.75
Prior Year Amount Raised by Taxation 92,125,992.89 Additions:Less: Prior Year Deferred Charges: Emergencies - New Ratable Adjustment to Levy 600,901.12
92,125,992.89 Subtotal 96,528,937.87Add: 2% CAP Increase 1,842,519.86 Adjusted Tax Levy Prior to Exclusions 93,968,512.75
Cap Bank Data
Exclusions: 2017 3,743,314.00Allowable Debt Service and Capital Lease 1,969,368.00 2018 1,160,833.00
Less Cancelled or Unexpended Exclusion 9,844.00 2019 335,176.00
ADJUSTED TAX LEVY 95,928,036.75 Total Allowable 2020 Operating Appropriations within "CAP" 101,768,260.87
2020 Budget Amount to be Raised 99,700,451.97
Amount that 2019 Local Tax is Under Tax Levy Cap 2,067,808.90
2020 Non-Property Tax Revenue
Surplus Anticipated$7,289,246 14.43%
Library $6,327,927 12.53%
Other Misc. Local Revenues $9,430,999
18.67%
Energy Receipts and Property Tax
Assistance $16,042,72631.76%
Fees & Permits$1,593,687 3.15%
Municipal Hotel Tax$905,640 1.79%
Uniform Construction
Code $5,396,302 10.68%
Latchkey$1,000,000 1.98%
Tax Appeal Settlements $2,531,950
5.01%
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2020 Appropriations
Municipal Services $44,241,244 29.45%
Public Safety $56,607,408 37.68% Debt Service,
Infrastructure Improvements $15,249,367 10.15%
Insurance $27,792,683 18.50%
Library $6,327,927 4.21%
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Change in Revenues and Appropriations
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Source: Township of Edison
Non-Property Tax Revenues Appropriations
2020 2019 2018Difference
(2020-19)Percent Change
Other Misc. Local Revenues 8,494,476 7,365,847 8,068,549 1,128,629 15.322%Energy Receipts and Property
Tax Assistance 16,042,726 16,042,726 16,042,726 - 0.000%Fees and Permits 1,593,687 1,418,056 1,346,800 175,631 12.385%
Uniform Construction Code 5,396,302 4,959,001 6,283,342 437,301 8.818%Municipal Hotel Tax 905,640 1,058,105 1,087,101 (152,465) -14.409%
Latchkey 1,000,000 2,124,012 2,025,609 (1,124,012) -52.919%Surplus Anticipated 7,289,246 8,222,182 9,250,359 (932,936) -11.347%
Sub-Total 40,722,077 41,189,929 44,104,485 (467,852) -1.136%
Note Sale Premium 936,523 1,175,524 731,565 (239,001) -20.331%Cancellation of Appropriations
and Fund Emergency Notes - 3,245,000 - (3,245,000) -100.000%Tax Appeal Settlements 2,531,950 - - 2,531,950 100.000%
Total 44,190,550 45,610,453 44,836,050 (1,419,903) -3.113%
Note: Does not include Debt Service and Library
2020 2019 DifferencePercent Change
Public Safety 56,607,408 55,193,867 1,413,541 2.561%Insurance 27,792,683 26,788,065 1,004,618 3.750%
Municipal Services 44,241,244 43,247,975 993,269 2.297%Total 128,641,335 125,229,907 3,411,428 2.724%
One Time Revenues
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2020 2019 2018 2017 2016 2015 2014FEMA Reimbursement - Sandy 657,382
Reserve for NJEIT Loan 144,947Sale of Liquor Licenses 412,000 350,000 1,000,000
Community Contribution 500,000 400,000Cancellation of Trust Interfund 492,493
Reserve for Debt Service 104,716 102,411 100,158 97,954 189,488Note Sale Premium 936,523 1,175,524 731,565 210,953 643,000
FEMA Reimbursement - January Blizzard 300,000Cancellation of Funded Ordinances 2,436,000
Cancellation of MCIA Rerve Fund 253,000Sale of Property 121,000
Cancellation of Tax Maps Reserve 600,000Stormwater Discharge Fees 473,312
Capital Surplus 305,922Cancel 2018 Appropriations 3,245,000
Fund Emergency Notes 2,263,600Tax Appeal Settlements 2,531,950
Sub Total 3,573,189 6,786,535 1,610,957 1,941,907 5,063,981 0 1,802,329
Surplus Used in Budget 7,289,246 5,958,522 9,250,359 7,987,461 3,736,455 10,000,000 6,450,000
Total 10,862,436 12,745,057 10,861,316 9,929,368 8,800,436 10,000,000 8,252,329
Total Assessed Value
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2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
7.237 7.303
7.108 7.050 6.992 7.028 7.064 7.066 7.096 7.144 7.195 7.261
(In Billions)
Source: Township of Edison
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Tax Appeal Overview
At the State Tax Court level a total of 105 appeals were filed in 2019. Over 30% of those appeals have been resolved, further showing our approach to resolving matters in a timely fashion to lessen the exposure to the Township. According to our Tax Appeal Professionals we have approximately 446 appeals open at the Tax Court level representing 270 properties. Prior to the onset of the pandemic the Reserve for Tax Appeals is sufficient to cover the Township’s liability based on our Risk Exposure Analysis of each property.
*154=138+16 Assessor Appeals for Hospital Properties**190=170+20 Assessor Appeals for Hospital Properties
Year Docket Cases Properties Total Assessment Change
Total Refunds Paid (multiple year of
appeals)
Appeals Still Pending
2009 167 204 35,238,200.00 $ 1,288,399.22 2010 273 307 194,836,600.00 2,429,151.61 12011 292 353 151,817,200.00 6,697,780.81 22012 259 381 134,042,598.00 5,501,359.38 122013 325 422 141,313,800.00 6,465,084.29 182014 257 349 187,251,669.00 8,700,875.75 442015 153 201 161,029,228.00 7,730,464.60 362016 154 190 76,011,820.00 3,656,739.34 852017 123 149 12,633,700.00 639,995.65 1072018 96 126 16,315,700.00 1,558,853.07 682019 105 153 12,527,000.00 442,104.65 73
Total $ 45,110,808.37 446
Tax Appeal Debt Repayment
15
2014 2015 2016 2017 2018 2019 2020 2021
2.9700 2.9710
4.5220 4.1000
2.1100 2.0900 2.0700 2.0490
(In Millions)
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For the years 2014 through 2019 the Township invested $101.12 million in the Township’s infrastructure. These investments were made in the following categories:
Investing in Edison
Category AmountRoads $40.00 millionDPW $14.00 millionRecreation $3.00 million
Police $11.70 millionFire $8.80 millionGeneral* $9.76 millionBuildings $13.86 million
* General includes Animal Shelter, Health and Senior Services and Various Technology
Road Improvement Program
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Year Number ofTotal Length (Centerline
miles)Construction Cost
2014(1) 36 15.2 $2.90 million
2015/2016 62 18.64 $7.90 million
2016/2017 58 15.85 $6.00 million
2017 59 17.6 $5.20 million
2018 (2) 73 10.81 $6.00 million
2019 (3) 73 15.6 $6.00 million
2020 (4) 57 15.0 $6.00million
Total 418 108.7 $40.00 million
1 Includes 11 streets (3.2 miles) paved by the Edison Township Road Department
2 Does not include the resurfacing of roadways or portions of roadways associated with the Drainage projects, or DOT funded projects funded with FY18 monies under contract and yet to be paved.
3 Approximate Length and quantity of streets. Projects under construction but not yet complete.
4 Approximate Length and quantity of streets. Projects have been awarded but not under construction.
What Do You Get for $2,475.09
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Police, Fire Protection and Emergency Medical Services
Road Infrastructure Improvements
Snow Plowing and Salting Services
Recycling Collection
Community Outreach Program
Recreation Programming for all ages and interests
Maintenance of parks and fields
Animal Control and Shelter Services
Support of Edison Arts Society and the Edison Memorial Tower
Vital Statistics and Health Services
Senior Services (transportation, social activities, senior lunch program)
School$5,711.46 55.97%
Municipal$2,475.09 24.26%
Library$156.95 1.54%
County$1,859.92 18.23%
Financial Challenges
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The COVID-19 pandemic resulted in a three month hold on all our lives. The State has just begun Phase II of re-opening. The full impact of the shutdown has not yet been fully evaluated.
The great recession caused a decline in total assessed values beginning 2011 leading to significant tax appeals. In 2019 105 tax appeals were filed and 30% have been resolved. The Township continues to address appeals in a timely basis.
In 2020, the Township returned $2.5 million in tax appeal resolutions to the budget. This is a one time revenue.
Edison paid tax refunds totaling more than $45 million between 2009 and 2019.
Though total assessed values began increasing in 2014, they still have not reached pre-recession levels.
Financial Challenges
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• Rather than dramatically increasing tax rates to make up for the revenue shortfall, the Township used all available reserves in order to deliver quality services.
• Approximately 85% of the Township’s budget is due to union contracts and state regulations.
• The majority of the Township’s reserves is used to balance the 2020 Budget.• Due to the pandemic, it is unclear if the Township will be able to refill its reserves.
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Edison Moving Forward
Address the financial challenges.
Update financial projections to reflect necessary changes in revenues and operating costs while still maintaining Edison’s investment in its infrastructure.
Expansion of tax base through responsible redevelopment and economic growth.
Expansion of our animal welfare services and outreach.
Continue evaluation of Community Center Project.
Maintain investments for infrastructure improvements.
Prioritizing investment in public safety both through capital investments and a stringent hiring process.
Sustain technological initiatives that reduce costs and gain productivity.
Identify and modify organizational processes to ensure efficient and accurate work flow.
Continue increasing our commercial ratable base to ensure a stable residential tax rate.