Township Manager’s Proposed 2021 Municipal Budget Dean B. Kazinci

Township Manager’s Proposed 2021 Municipal Budget Dean B. Kazinci Township Manager

Proposed 2021 Municipal Budget Budget Preparation Process 1.Department Head Requests (September 2020) 2.Manager/CFO Review (October 2020) 3.Manager/CFO/Department Head Public Hearings (November 2020) 4.Public Input at Council Meetings (2/9, 2/23) 5.Manager/CFO/Auditor review 6.Manager’s presentation to Council of proposed budget appropriations and estimated revenues

Proposed 2021 Municipal Budget Budget Preparation Process 7. 8. 9. 10. Council review and public hearings (March) CFO/Auditor’s Revenue and tax levy cap projections CFO/Auditor’s review and recommendations Manager’s Budget to Council rev. statutory 2/26 or next regularly scheduled meeting 11. Council introduction of budget by revised statutory date of 3/30 or next meeting (4/13) 12. Hearing and adoption of budget by revised statutory date of 4/30 or next meeting (5/11)

Assumptions 2021 Budget is dependent upon: Council determination of 2021 Municipal Budget Appropriations Fund Balance (Surplus) available for 2021 2020 Municipal Revenues’ Analysis and 2021 Revenue Anticipations (On going) State Aid allocations for 2021 Special Emergency Financing for Terminal Leave

Appropriation vs. Revenues vs. Rate Appropriations – what the municipality intends to spend on operations Revenues – what the municipality earns through various fees and the collection of taxes Rate – the amount of taxes to be raised / the net property valuation (total value of all properties in the Township) Simply stated, the tax rate is a percentage of your property value that you are taxed on

2020 Tax Breakdown Tax Breakdown Total Property Taxes: 166,593,069.28 Proposed budget refers to municipal portion of taxes only All taxes are paid to and collected by the municipality’s Tax Collection Office Total School Levy 94,433,784 57% Municipal Levy 54,012,907.98 32% Library County Levy Municipal OpenCounty Open 2,065,719.66 Space Levy Space Levy 14,937,891.82 1.3% 9% 515,254 627,511.82 0.3% 0.4% Taxes are forwarded to all taxing entities biweekly/quarterly Tax Breakdown comparison: Municipal – 38% (1943) vs. 32% (2020)

Known Impacts on 2021 Budget Increase in PFRS and PERS payments Increase in Public Entity Joint Insurance Fund Increase in Recycling Disposal Costs, Tree Trimming Increase in Contractual Obligations to Employees Increase in Debt Service Labor Negotiations – 6 unions out of contract on 12/31/21

Proposed 2021 Municipal Budget Proposed tax rate increase is 2.5% Estimated annual tax increase: Average home assessed at 387,405 Increase in Taxes Per year: 105.47 Per month: 8.79 Tax Levy Budget Appropriations Minus Revenues Possible Appropriations Cap Issue If Cap Bank Ordinance Is Not Adopted No Tax Levy Cap Issue Expected

How We Arrived at 2.5 % Tax Rate Increase Special Emergency Financing for 2021 Terminal Leave Payments Reduction in salary and wages by 387,600 due to breakage/delayed hiring/attrition Utilized additional 1,000,000 in surplus through cancellation of unspent 2020 appropriations

How We Arrived at 2.5 % Tax Rate Increase Responsible spending by Department Heads and dedicated attention to procurement by Purchasing Agent (COVID-19 CARES Reimbursement of 192,635.33) Includes funding for potential agreement with Teaneck Swim Club Maintained or reduced operating expenses for all departments

How We Arrived at 2.5 % Tax Rate Increase Reduced 2021 Capital Program BCUA bill reduction by 4% Negotiated delayed retroactive payments to expired labor contracts (July 1st vs. January 1st) Proposed budget includes additional tree removal funds and does not disrupt services

American Rescue Plan Act of 2021 Proposed 1.9 Trillion American Rescue Plan Act of 2021 would potentially provide Teaneck with 3.957 million Half of the funds to be disbursed within 60 days of enactment and other half to be disbursed in 2022 Funds to be used by 12/31/2024 Projected that funds will be utilized for revenue shortfalls due to COVID-19 Pandemic Conditions subject to change until final guidance is received

2021 Proposed Budget Budget Appropriation Categories Total: 72,695,665.00 Salaries & Wages 35,426,000 49% Other Expenses 22,284,547.80 31% Reserve For uncollected taxes, 1,671,127 2% Special Emergency 617,369.20 1% Capital Improvement Fund, 255,000 0% Debt Service 2,897,120 4% Deferred & Statutory 9,724,501 13%

Proposed Salaries & Wages Total: 35,246,000.00 Court 435,000 1% Purchasing 152,000 0% Fire Assessor 10,125,000 210,000 29% 1% Collector 245,000 1% Finance 295,000 1% Human Resources 305,000 1% Manager 412,000 1% Clerk 194,000 Crossing Guards 0% 200,000 0% Council 49,000 Recreation 0% 1,885,000 Library 1,913,000 6% 5% Health 726,000 2% Police 12,400,000 35% DPW 4,790,000 14% Building 910,000 3%

Salary & Wage Increases Required by Union Contract Under Binding Arbitration (Public Safety) 20,570,379 58% Under Contract 10,557,360 30% Only 12% of salary & wages or 4,118,261 Excluded Employees and Department Heads Total: 35,246,000

Collective Bargaining Agreements Police SOA Exp. December 31, 2021 PBA 215 Exp. December 31, 2021 AFSCME Exp. December 31, 2021 Library Exp. December 31, 2021 DPW Supervisors Exp. December 31, 2020* DPW Non-Supervisors Exp. December 31, 2021 PFOA Local 242 Exp. December 31, 2021 FMBA Local 42 Exp. December 31, 2023

Salaries and Wages Summary and Recommendations 2021 Recommendations Department of Public Works (DPW) Fill (2) vacant laborer positions Fill (1) vacant position with a plumber Fill (1) vacant position with a carpenter Public Works 4,790,000 14% Fill (1) vacant position with a tree climber

Salaries and Wages Summary and Recommendations Police 2021 Recommendations Authorized strength via ord. (115) uniformed officers Current table of organization provides 97 sworn officers Police Dept., 12,400,00035% 5 positions to be filled on or after July 1st to bring table of organization to 95 sworn officers 2 officers retiring on 8/1 and will be replaced in January 2022

Salaries and Wages Summary and Recommendations Fire 2021 Recommendations Authorized Strength of 92 uniformed Fire Fighters Current table of organization provides 91 fire fighters Fire Dept. 10,125,000 29% Current strength of 87 fire fighters with 2 positions to be filled on or after July 1st 2 fire fighters to be added in January 2022

Salaries and Wages Summary and Recommendations Finance Department 2021 Recommendations Convert Accountant position to Deputy CFO Finance 295,000 .08%

Salaries and Wages Summary and Recommendations Health Department 2021 Recommendations Due to a retirement and resignation, will be filling Deputy Registrar and a Registered Environmental Health Specialist position on or after July 1st Health 726,000 2% Fill Social Services Specialist position on or after July 1st to replace Vantage Social Services

Salaries and Wages Summary and Recommendations Court Office 2021 Recommendations Due to a resignation, we will be filling vacant Deputy Court Administrator position on or after July 1st Court 435,000 1%

Salaries and Wages Summary and Recommendations Recreation Department 2021 Recommendations Fill vacant full-time Senior Center attendant position on or after September 1st Position was approved in 2020 Budget Recreation 1,885,000 5%

Salaries and Wages Summary and Recommendations Public Library 2021 Recommendations Add Digital Librarian on or after September 1st Library 1,913,000 5%

Salaries and Wages Summary and Recommendations Terminal Leave Trust Continue to utilize 5-Year Special Emergency Financing to offset terminal leave payments in 2021

What are Special Emergency Appropriations? Per N.J.S.A. 40A:4-53: Preparation of Tax Maps Revaluation Codification of Ordinances Preparation of Master Plan Drainage Maps/Flood Control Engineering/Planning of Sanitary Sewer System Municipal Consolidation Severance Liabilities (Terminal Leave) Preparation of Sanitary/Storm System Map Tax Appeal Refunds

Salaries and Wages Summary and Recommendations Overtime Dept. Fire DPW Police 2021 500,000 326,400 600,000 2020 500,000 326,400 600,000 Change % 0% 0% 0% Spent 668,854.99 273,303.67 794,766.03

Appropriations Other Expenses Group Insurance For Employees 5,615,500 25% Utilities 6,920,100 31% Department Operating Expenses 7,658,447.80 34% Contributions to Self-Insurance Fund 1,250,000.00 6% Total: 22,284,547.80 Other Insurance Premiums 840,500 3%

Total: 6,920,100.00 Utilities BERGEN COUNTY UTILITIES AUTHORITY 4,685,000 68% GASOLINE 127,000 2% DIESEL FUEL 207,500 3% WATER/FIRE HYDRANT SERVICE 563,900 ELECTRIC 8% 589,700.00 STREET LIGHTING 493,000 9% 7% HEATING OIL NATURAL GAS TELEPHONE 20,000 105,500 128,500 0% 1% 2%

Contributions to Self-Insurance Fund Maintain 2020 Appropriation Title 59 Tort Claims Workman’s Compensation Claims Contributions to SelfInsurance Fund 1,250,000 6% Proposed Settlements to be funded

Other Insurance Premiums PEJIF Premium Increase ( 31,000) Auto Liability and collision Employment Practices Other Insurance Premiums 840,500 4% Public Officials Facilities

Debt Service Debt Service Highlights 2020 Bond Sale financed 13,280,000 at 1.343 % fixed for life of loan (13 years) Debt Service 2,897,120 4% Slight reduction in line item due to payoff in Debt Service

Statutory Expenditures Major Adjustments Statutory Expenditures PFRS increased 555,000 (9%) PERS increased 115,000 (8%) DCRP increased 20,000 (100%) Total line item increased 690,000 or 7.9% Statutory Exp. 9,424,500 13% Increases due to new increased life expectancy projections and drop in long term investments by pension funds

Capital Improvement Fund Total Cost of Improvements Capital Improvement Fund 4,930,000 255,000 (5% Down payment) Capital Improvement Fund Review March 25, 2021

Estimated Revenue Delinquent 925,000 LocalTaxes, Revenue, 4,403,500 Surplus, 6,100,000 1% 6% State Revenue, 3,379,296 8% 5% Total: 72,695,665 Municipal Levy, 57,887,869 80%

Estimated Local Revenue Total: 4,403,500.00 Fees & Permits - Building, 1,250,000 29% Fees & Permits – Other 1,387,500 32% Licenses - Other, 62,000, Licenses -1% Alcoholic SID Downtown Business Loan, Beverages, 62,000 40,000 Fines & Costs - Municipal 1% 0% Hotel Occupancy Tax; 336000; Court, 450,000, 9% 0.08 Fines - Library, 15,000, 0% Sewer Use Charges, Rental 445000of Township Property, Interest on Investments; Interest & Costs on Taxes, 15000; 0.00 445,000.00 90,000 2% 230,000 5%

Estimated State Revenue Total: 3,379,296.00 Energy Receipts Tax 3299357 1 Consolidated Municipal Property Tax Relief Aid 79,939 2%

Factors Potentially Impacting Budget Special Emergencies – (Terminal Leave Payouts, Tax Map, Code Recodification) Glenpointe Tax Appeal Settlement Holy Name Medical Center Tax Appeal Impact of tax appeals (State/County) Interest rates/Bond Rating Flat state aid Labor contract negotiations (6 contracts expiring 12/31/21) Pension Contribution Increases New Parking Meter Program Credit Card Acceptance through awarding of new Banking Institutions Workman’s Compensation/Settlement Claims Slight increase in Joint Insurance Fund Costs

Budget Wrap - Up Appropriations Revenue Delinquent LocalTaxes Revenue Surplus 6,100,000 925,000 State Revenue 4,403,500 8% Salaries & Wages 35,2466,000 49% Reserve for Uncollected Taxes 1,671,127 Special Emergency 2% 1% 6% 3,379,296 5% Other Expenses 22,284,547.80 31% 617,369.20 1% Capital Debt Service Deferred & 2,897,120 Improvement Fund 255,000 Statutory 4% 0% 9,724,501 13% Total: 72,695,665 Municipal Levy 57,887,869 80% Total: 72,695,665

Strategies Short & Long Term Credit Card Acceptance for Court and other departments Migrate funds to newly contracted banking institutions Cost Containment (discretionary spending freeze enacted for 2021) Merge Fire Dispatch with City of Hackensack (in progress) Sale/development of selected municipally owned property Enhance ratables through business attraction and development Outsourcing of School Crossing Guards Improved Infrastructure to attract economic development Redevelopment of Alfred Avenue Debt Management Plan Pedestrian Safety Measures

Upcoming Budget Meeting Tentative Agenda Thursday, March 18, 2021 Review - Police Department Budget Review – Fire Department Budget Review – Public Works Budget Review - Various Budget Accounts

Upcoming Budget Meeting Tentative Agenda Thursday, March 25, 2021 Review - Recreation Department Budget Review – Library Budget Review – Legal Budget Review - Capital Budget Review – Manager/Council/Clerk Review - Various Budget Accounts

Thank you!