CITY OF ASBURY PARK A N N U A L F I N A N C I A L R E P O R T

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1 CITY OF ASBURY PARK A N N U A L F I N A N C I A L R E P O R T Photo Credit: APBoardwalk CITY DEPARTMENT ORGANIZATION Charting City Council, Administration, Public Safety, Health and Human Services, Infrastructure Maintenance, and More WHERE MONEY CAME FROM A Breakdown of State Aid, Taxes, Grants, Fees and Permits, and Other Sources of Revenue Coming into City Hall HOW MONEY WAS SPENT How Our Revenue Was Spent, Including Public Safety, Capital Improvements, Social Services, and More FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017

2 2017 Financial Summary CONTENTS 1 CITY ORGANIZATION A MESSAGE FROM CITY MANAGER MICHAEL CAPABIANCO WHERE MONEY CAME FROM WHERE MONEY WENT OPERATING RESULTS NET ASSETS PROPERTY TAXES CAPITAL PLANNING AND DEBT City Hall presents the second annual Financial Report, covering the fiscal year of 2017 in Asbury Park. We continue this reporting tradition in order to share information about Asbury Park's financial status with all residents, and to spread awareness of where the City's money comes from, and how it is spent. The information in this report was drawn from our Finance, Tax Collection, and Tax Assessment departments. More detailed financial and budget information can be found on our website, C I T Y O F A S B U R Y P A R K P A G E 2

3 2017 ASBURY PARK CITY COUNCIL From left to right: Deputy Mayor Amy Quinn, Mayor John Moor Council Members Eileen Chapman, Jesse Kendle, and Yvonne Clayton CITIZENS OF ASBURY PARK CITY COUNCIL PUBLIC LIBRARY ADMINISTRATION City Clerk Communications Human Resources Finance Tax Collector Tax Assessor CITY MANAGER INFRASTRUCTURE MAINTENANCE Planning and Zoning Public Works Code Enforcement Sewer, Parking, and Beach Utilities PUBLIC SAFETY Police Fire Municipal Court Emergency Management HEALTH AND HUMAN SERVICES Social Services Senior Center Community Development Recreation

4 2017 Financial Summary Where the Money Came From REVENUES 2017 PERCENT Property Taxes State Aid Parking Fees Sewer Rents PILOTs Beach Fees Anticipated Surplus Other Funds Municipal Court Other Budget Revenues Construction Code Fees Grants Fees, Permits, and Licenses Developers Contribution for Debt Service Sewer Connection Fees Hotel Occupancy Tax Cable Franchise Fees Interest on Taxes TOTAL REVENUES $ 17,992,986 13,995,844 4,983,158 4,564,015 4,018,466 2,141,161 1,876,000 1,630,196 1,511,096 1,174,805 1,451, , , , , , ,871 $ 57,622, % % 8.65 % 7.92 % 6.97% 3.72 % 3.26 % 2.83 % 2.62 % 2.04 % 2.52 % 1.21 % 0.84 % 0.73 % 0.69 % 0.35 % 0.26 % Property Taxes are billed based on the amount of tax revenue anticipated in the annual budget, and apportioned according to individual property assessments established by the Tax Assessor. Sewer Rents, Parking Fees, and Beach Fees fund the operating costs of the City's utility funds, which are required to be self-supporting and do not rely on revenues from the Current Fund. Construction Code Fees include building permits and other charges paid directly by individuals to offset the costs associated with reviewing applications and performing inspections. Fees, Permits, and Licenses are charges for services that are paid directly by individuals who use those services. Pilots, Grants 9% Other Revenue 10% State Aid 24% Hotel Occupancy Tax is a sales tax levied on hotel room fees that is collected by the State of New Jersey and remitted to the City on a monthly basis. Cable Franchise Fees are payments from Optimum Online and Verizon for the use of city right-of-ways to provide their services. Property Taxes 31% Fees, Permits 4% Utilities 21% Interest on Taxes are interest amounts assessed for overdue payments of property taxes.

5 How the Money was Spent 2017 Financial Summary EXPENDITURES Public Safety Debt Service Group Insurance Infrastructure Maintenance Retirement Contributions General Administration Other Insurance Parking Maintenance Sewer System Maintenance Grants Beach Maintenance Energy and Utilities Capital Improvements Interlocal Agreements Free Public Library Construction Code Reserve for Uncollected Taxes Municipal Court Code Enforcement Parks and Recreation Health and Human Services Deferred Charges TOTAL EXPENDITURES 2017 $ 14,610,667 5,287,497 4,981,045 4,208,635 3,903,024 3,161,783 2,194,887 2,025,930 1,611,601 1,463,710 1,264,643 1,111, , , , , , , , , , ,000 $ 49,757,171 Public Safety includes amounts expended for Police, Fire, emergency dispatch, and Municipal Court. PERCENT Group Insurance is the employer's share of premiums for medical, prescription, and disability insurance programs % % % 8.46 % 7.84 % 6.35 % 4.41 % 4.07 % 3.24 % 2.94 % 2.54 % 2.23 % 1.35 % 1.31 % 0.91 % 0.81 % 0.78 % 0.75 % 0.72 % 0.56 % 0.46 % 0.23 % Infrastructure Maintenance includes amounts expended for Engineering, Planning and Zoning, streets and roads, and buildings and grounds. This encompasses street maintenance, snow removal, leaf collection, garbage collection, shade tree management, building and vehicle maintenance, parks maintenance, and stormwater maintenance. Parking Maintenance is costs contained within the City's self-supporting Parking Utility fund and is fully supported by users fees collected for parking in the City. Sewer System Maintenance is costs contained within the City's self-supporting utility fund and is fully supported by sewer charges. General Administration includes budget appropriations for the City Manager, public communications, human resources, information technology, City Council, City Clerk, Finance Department, and legal services. Beach Maintenance is costs contained within the City's self-supported Beach Utility fund and is fully supported by user fees collected for use of the beach and other amenities related to the beach. The Reserve for Uncollected Taxes is the equivalent of bad debts expenses in a commercial business organization. Health and Human Services includes expenses related to public health programs and senior citizens programs.

6 2017 Financial Summary Operating Results BUDGET FUNDS STATEMENT OF OPERATIONS GENERAL FUND SEWER UTILITY BEACH UTILITY PARKING UTILITY Revenues and Credits Property Tax Receipts User Charges State Payments Local Revenues Grants Unexpected Budget of Prior Year Interfund Loans Returned Total Revenues and Credits $ 15,841, ,992,844 25,262,157 1,451,210 2,757,908 46,239 $ 59,351, ,564,015 1,006,630 88,665 $ 5,659, ,141, , ,287 $ 2,400, ,983,158 51,729 74,566 $ 5,109,453 Expenditures and Other Charges Budget Appropriations Other Charges Total Expenditures and Charges 45,159,402 11,125,424 $ 56,284,826 5,295,500 $ 5,295,500 1,773,000 $ 1,773,000 2,551,950 $ 2,551,950 Net Excess in Revenue $ 3,066,666 $ 363,810 $ 627,096 $ 2,557,503 Beginning Fund Balance 7,581, ,498 1,762,516 3,096,660 Ending Fund Balance $ 10,647,899 $ 555,308 $ 2,389,612 $ 5,654,164 General Fund The General Fund includes revenues and expenses relating to the general functions of government. These functions include public safety, capital improvements, infrastructure maintenance, the Asbury Park Public Library, general administration, senior citizen programs, solid waste management, code enforcement, and health and human services. Budgeting and accounting for the General Fund, which is called the Current Fund in New Jersey, is regulated by OCBOA (other comprehensive basis of accounting) regulatory guidelines. Utility Funds The City's Sewer, Parking, and Beach Utility funds are "enterprise" funds and are accounted for in a manner that is similar to that of commercial organizations. Utility funds are expected to be self-supporting with total costs funded through utility charges and fees.

7 2017 Financial Summary Net Assets GENERAL FUND Net assets of the General Fund are the equivalent of unassigned fund balance, or surplus. Fund balance is necessary for adequate cash flow, and to provide funds for emergencies and unforeseen events. 4 In the State of New Jersey, certain amounts of the fund balance must be restricted for receivables such as taxes, interfunds, and other revenues that have not been collected. Unassigned fund balance increases when these receivables are realized in cash. ENTERPRISE FUNDS The Sewer, Parking, and Beach Utilities are enterprise funds. Accounting in enterprise funds incorporates certain principles that are similar to commercial enterprises, such as accruing expenses. The most important feature of enterprise funds is that they are required to be self-supporting. Each utility fund must realize sufficient revenues to cover the costs of its operations.

8 2017 Financial Summary Property Taxes Property taxes are apportioned based on the assessed values of all residential, commercial, and industrial property within the City PROPERTY ASSESSMENTS Individual property assessments are established by the Tax Assessor. Individual assessments annually increase or decrease depending on market conditions and physical changes on properties. Apartment 11% Industrial 1% Vacant Land 5% In 2017, the net valuation of taxable property in the city increased by 5.88%. Commercial 23% 2016 Net Valuation 2017 Net Valuation Change Percent Increase $ 1,291,621,100 1,372,672,200 81,051, % Residential 60% 2017 PROPERTY TAX BILLING AND COLLECTION TAX BILLING School District County Taxes Municipal Taxes $ 7,103,291 4,020,080 17,491,970 } WHERE YOUR TAX DOLLAR GOES School District 25% Total Taxes Billed $ 28,615,341 TAX COLLECTIONS Collected in 2017 Prepaid in 2016 Senior and Veteran Deductions Total Taxes Collected $ 28,191, ,964 22,500 $ 28,495,527 Municipal 61% County 14% Percentage of Taxes Collected 99.58% 1

9 Capital Planning and Debt 2017 Financial Summary OUTSTANDING DEBT DECEMBER 31, 2016 GENERAL DEBT (tax supported) Bonds and State Loans Capital Leases Short Term Notes Debt Authorized and Not Issued Total General Debt SEWER UTILITY DEBT Bonds and State Loans Capital Leases Short Term Notes Debt Authorized and Not Issued Total Sewer Utility Debt Amount of Self-Supporting Debt $ 8,145,799 50,000 13,000,000 5,338,401 $ 26,534,199 $ 14,093,138 5,320,000 2,200,000 2,072,213 $ 23,685,351 (23,685,351) LEGAL DEBT CAPACITY 2017 CAPITAL IMPROVEMENT PROGRAM CAPITAL EQUIPMENT Police Vehicles Police Vehicles Electronics Social Services Van Public Works Sweeper Public Works Vehicle Building Department Vehicle Fire Protective Gear Administration IT Administration Equipment 3.5 $ 150,000 45,000 45, ,000 50,000 45,000 50,000 75,000 45,000 Net Sewer Utility Debt PARKING UTILITY DEBT Short Term Notes Total Parking Utility Debt Amount of Self-Supporting Debt Net Parking Utility Debt TOTAL DEBT Less: Self-Supporting Debt TOTAL NET DIRECT DEBT $ 0 $ 200,000 $ 200,000 (200,000) $ 0 $ 50,419,550 (23,885,351) $ 26,534,199 MUNICIPAL PROPERTY Police Accreditation Upgrades Administration General Plant INFRASTRUCTURE Planning Main St & Springwood Ave Streetscape Public Works Lighting on Atkins Ave Administration Garbage Cans Administration Road Repaving ADMINISTRATIVE AND DESIGN Soft Cost Fees Administration Road Repaving Design $ 35,000 70,000 $ 150, ,000 35,000 1,000,000 $ 20, ,000 TOTAL $ 3,000,000 1

10 June 2018 Asbury Park City Hall 1 Municipal Plaza Asbury Park, NJ Visit, Follow, Sign-Up & Watch NextDoor.com Text to for Nixle Mobile Alerts APTV Verizon Fios Ch. 30 & Cablevision Ch. 77