CITY OF ASBURY PARK COUNTY OF MONMOUTH, NEW JERSEY FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULES

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1 COUNTY OF MONMOUTH, NEW JERSEY FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULES DECEMBER 31, 2015 AND 2014

2 COUNTY OF MONMOUTH, NEW JERSEY TABLE OF CONTENTS DECEMBER 31, 2015 AND 2014 Independent Auditors' Report Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Regulatory-Basis Financial Statements - Basic Financial Statements Exhibit Current Fund Comparative Balance Sheets - Regulatory Basis Comparative Statements of Operations and Changes in Fund Balance - Regulatory Basis Statement of Revenues - Regulatory Basis Statement of Expenditures - Regulatory Basis A A-1 A-2 A-3 Trust Fund Comparative Balance Sheets - Regulatory Basis General Capital Fund Comparative Balance Sheets - Regulatory Basis Statement of Fund Balance - Regulatory Basis B c C-1 Sewer Utility Fund Comparative Balance Sheets - Regulatory Basis Comparative Statements of Operations and Changes in Fund Balance - Regulatory Basis - Sewer Utility Operating Fund Statement of Revenues - Regulatory Basis - Sewer Utility Operating Fund Statement of Expenditures - Regulatory Basis - Sewer Utility Operating Fund Statement of Fund Balance - Regulatory Basis D D-1 D-2 D-3 D-4

3 Regulatory-Basis Financial Statements - Basic Financial Statements - (Continued) Beach Utility Fund Comparative Balance Sheets - Regulatory Basis Comparative Statements of Operations and Changes in Fund Balance - Regulatory Basis - Beach Utility Operating Fund Statement of Revenues - Regulatory Basis - Beach Utility Operating Fund Statement of Expenditures - Regulatory Basis - Beach Utility Operating Fund Exhibit E E-1 E-2 E-3 Parking Utility Fund Comparative Balance Sheets - Regulatory Basis Comparative Statements of Operations and Changes in Fund Balance - Regulatory Basis - Parking Utility Operating Fund Statement of Revenues - Regulatory Basis - Parking Utility Operating Fund Statement of Expenditures - Regulatory Basis - Parking Utility Operating Fund Statement of Fund Balance - Regulatory Basis F F-1 F-2 F-3 F-4 General Fixed Assets Account Group Comparative Statement of General Fixed Assets G Notes to Basic Financial Statements Supplementary Schedules - Supplementary Information Schedule Current Fund Schedule of Cash and Cash Equivalents Schedule of Change Funds Schedule of County Added Taxes Payable Schedule of Taxes Receivable and Analysis of Property Tax Levy 1-A 2-A 3-A 4-A

4 Supplementary Schedules - Supplementary Information - (Continued) Current Fund {Continued) Schedule of Tax Title Liens Receivable Schedule of Due from State of New Jersey per Chapter 20, P.L Schedule of Due to Parking Utility Capital Fund Schedule of Revenue Accounts Receivable Schedule of County Taxes Payable Schedule of Local District School Tax Payable (Overpaid) Schedule of Due from Federal Emergency Management Agency Schedule of Reserve for Sale of Municipal Assets Schedule of Reserve for Encumbrances - Federal and State Grant Fund Schedule of Reserve for State and Federal Grants Unappropriated - Federal and State Grant Fund Schedule of Appropriated Reserves for Federal and State Grants - Federal and State Grant Fund Schedule of Deferred Charges Schedule of Due from Current Fund - Federal and State Grant Fund Schedule of Grants Receivable - Federal and State Grant Fund Schedule of 2014 Appropriation Reserves Schedule of Reserve for Encumbrances Schedule 5-A 6-A 7-A 8-A 9-A 10-A 11-A 12-A 13-A 14-A 15-A 16-A 17-A 18-A 19-A 20-A Schedule of Due from General Capital Fund - Grant Fund Schedule of Prepaid Taxes Schedule of Tax Overpayments Federal and State 21-A 22-A 23-A

5 Supplementary Schedules - Supplementary Information - (Continued) Current Fund (Continued) Schedule of Reserve for Master Plan Update Schedule of Due to Trust Other Fund - Federal and State Grant Fund Schedule of PILOT Assessments Due to County Schedule of Due to General Capital Fund Schedule of Prepaid Debt Service - COMPTRA Aid Schedule of Other Liens Receivable - New Versailles Schedule of Due from Parking Utility Operating Fund Schedule of Special Emergency Notes Payable Schedule of Due to Granter - Federal and State Grant Fund Schedule of Reserve for Hurricane Sandy Schedule of Due from Sewer Utility Operating Fund Schedule of Pledged PILOT Assessments Due to Trustee (RAB) Schedule of PILOT Assessments Due from Emory Realty, LLC Schedule of Due from Animal Control Trust Fund Schedule of Due from Trust Other Fund Schedule of Accounts Payable 24-A 25-A 26-A 27-A 28-A 29-A 30-A 31-A 32-A 33-A 34-A 35-A 36-A 37-A 38-A 39-A Trust Fund Schedule of Cash and Cash Equivalents Schedule of Investments - Trust Other Fund Schedule of Reserve for Animal Control Trust Fund Expenditures - Animal Control Trust Fund Schedule of Due to State of New Jersey - Animal Control Trust Fund Schedule of Reserve for Encumbrances - Fund Animal Control Trust 5-8

6 Supplementary Schedules - Supplementary Information - (Continued) Trust Fund - Continued Schedule of Miscellaneous Reserve - Trust Other Fund Schedule of Various Reserves - Trust Other Fund Schedule of Due from Federal and State Grant Fund - Trust Other Fund Schedule of Reserve for RC.A. Programs - Trust Other Fund Schedule of Reserve for Community Development Block Grant - Trust Other Fund Schedule of Grants Receivable - CDBG Schedule of Reserve for Encumbrances - Trust Other Fund Schedule of Reserve for Off Duty Police Services Schedule of Due to State of New Jersey - Trust Other Fund Schedule of Due to Current Fund - Trust Other Fund Schedule of Due to Current Fund - Animal Control Trust Fund Schedule 6-B 7-B 8-B 9-B 10-B 11-B 12-B 13-B 14-B 15-B 16-B General Capital Fund Schedule of Cash, Cash Equivalents and Investments Schedule of Cash, Cash Equivalents and Investments Schedule of Deferred Charges to Future Taxation - Funded Schedule of Deferred Charges to Future Taxation - Unfunded Schedule of New Jersey EDA Loan Payable Schedule of Reserve for Regional Contribution Agreements Schedule of Serial Bonds Schedule of Green Acres Loan Payable Schedule of Improvement Authorizations Schedule of Due from Current Fund Schedule of Capital Improvement Fund 1-C 2-C 3-C 4-C 5-C 6-C 7-C 8-C 9-C 10-C 11-C

7 Supplementary Schedules - Supplementary Information - (Continued) General Capital Fund - Continued Schedule of Intergovernmental Receivables Schedule of Bond Anticipation Notes Payable Schedule of Due from Monmouth County Improvement Authority Schedule of Reserve for Contractor Contribution Schedule of Capital Lease Obligations Payable - MCIA Schedule of Reserve for Payment of Bonds Schedule of Reserve for Insurance Proceeds Schedule of Due to Federal and State Grant Fund Schedule of Reserve for Payment of Notes Schedule of Contracts Payable Schedule of Reserve for Encumbrances Schedule of Bonds and Notes Authorized but not Issued Schedule 12-C 13-C 14-C 15-C 16-C 17-C 18-C 19-C 20-C 21-C 22-C 23-C Sewer Utility Fund Schedule of Cash and Cash Equivalents Schedule of Cash and Cash Equivalents - Sewer Utility Capital Fund Schedule of Fixed Capital - Sewer Utility Capital Fund 1-D 2-D 3-D Schedule of Consumer Accounts Receivable - Operating Fund Sewer Utility 4-D Schedule of Sewer Liens Receivable - Sewer Utility Operating Fund Schedule of Reserve for Amortization - Sewer Utility Capital Fund Schedule of 2014 Appropriation Reserves - Sewer Utility Operating Fund 5-D 6-D 7-D

8 Supplementary Schedules - Supplementary Information - (Continued) Sewer Utility Fund - Continued Schedule of Due to Asbury Partners, LLC - Sewer Utility Operating Fund Schedule of Deferred Charges - Sewer Utility Operating Fund Schedule of Sewer Overpayments - Sewer Utility Operating Fund Schedule 8-D 9-D 10-D Schedule of Improvement Authorizations - Fund Sewer Utility Capital 11-D Schedule of Fixed Capital Authorized and Uncompleted - Utility Capital Fund Schedule of Serial Bonds - Sewer Utility Capital Fund Sewer 12-D 13-D Schedule of MCIA Capital Lease Refunding Obligations Payable - Sewer Utility Capital Fund 14-D Schedule of MCIA Capital Lease Obligations Payable - Utility Capital Fund Schedule of Contracts Payable - Sewer Utility Capital Fund Sewer 15-D 16-D Schedule of Accrued Interest on Bonds and Notes - Operating Fund Sewer Utility 17-D Schedule of Due to Current Fund - Sewer Utility Operating Fund 18-D Schedule of Due to Sewer Utility Operating Fund - Capital Fund Sewer Utility 19-D Schedule of Bond Anticipation Notes Payable - Sewer Utility Capital Fund Schedule of Reserve for Encumbrances - Sewer Utility Funds Schedule of Bonds and Notes Authorized but not Issued - Sewer Utility Capital Fund 20-D 21-D 22-D Beach Utility Fund Schedule of Cash and Cash Equivalents Schedule of Reserve for Encumbrances 1-E 2-E

9 Supplementary Schedules - Supplementary Information - (Continued) Beach Utility Fund - Continued Schedule of 2014 Appropriation Reserves Schedule of Prepaid Beach Fees Schedule 3-E 4-E Parking Utility Fund Schedule of Cash and Cash Equivalents Schedule of Cash and Cash Equivalents - Fund Parking Utility Capital 1-F 2-F Schedule of Reserve for Encumbrances - Parking Utility Operating Fund Schedule of 2014 Appropriation Reserves - Parking Utility Operating Fund Schedule of Accrued Interest on Notes - Parking Utility Operating Fund 3-F 4-F 5-F Schedule of Bond Anticipation Notes Payable - Capital Fund Parking Utility 6-F Schedule of Improvement Authorizations - Fund Parking Utility Capital 7-F Schedule of Fixed Capital Authorized and Uncompleted - Parking Utility Capital Fund Schedule of Fixed Capital - Parking Utility Capital Fund Schedule of Reserve for Amortization - Parking Utility Capital Fund Schedule of Due to Current Fund - Parking Utility Operating Fund Schedule of Due from Current Fund - Parking Utility Capital Fund 8-F 9-F 10-F 11-F 12-F Schedule of Capital Lease Obligations Payable - Capital Fund Schedule of Reserve for Parking Improvements - Capital Fund Parking Utility Parking Utility 13-F 14-F Schedule of Reserve for Payment of Notes - Parking Utility Capital Fund 15-F

10 Part II - Single Audit Section Supplementary Information Relating to the Schedules of Expenditures of Federal Awards - Supplementary Information Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by Uniform Guidance Schedule of Expenditures of Federal Financial Awards Schedule A Notes to Schedule of Expenditures of Federal Awards Schedule of Findings and Questioned Costs Part Ill - Comments Section - Supplementary Information Comparative Statements of Operations and Changes in Fund Balance - Current Fund Comparative Statements of Operations and Changes in Fund Balance - Sewer Utility Fund Comparative Statements of Operations and Changes in Fund Balance - Beach Utility Fund Comparative Statements of Operations and Changes in Fund Balance - Parking Utility Fund Comparison of Tax Levies and Collections Comparative Schedule of Tax Rates Officials in Office and Surety Bonds General Comments: Contracts and Agreements Required To Be Advertised for N.J.S. 40A:11-4 Collection of Interest on Delinquent Taxes and Utility Charges Delinquent Taxes and Tax Title Liens, Delinquent Sewer Rents and Liens and PILOTS Cash and Cash Equivalents Revenues Expenditures Payroll School Taxes lnterfunds Library Single Audit of Federal Award Programs Appreciation Follow up on Prior Year's Recommendations Recommendations

11 PARTI REPORT OF AUDIT OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION YEARS ENDED DECEMBER 31, 2015 AND 2014

12 WISS A Partner to Grow With INDEPENDENT AUDITORS' REPORT Honorable Mayor and Members of the City Council City of Asbury Park County of Monmouth Asbury Park, New Jersey Report on the Financial Statements We have audited the accompanying basic financial statements - regulatory basis of the City of Asbury Park ("City"), County of Monmouth, State of New Jersey, which comprise the balance sheets - regulatory basis of the various funds and the statements of general fixed assets account group - regulatory basis of the City of Asbury Park ("City"), County of Monmouth, State of New Jersey, as of December 31, 2015 and 2014 and the related statements of operations and changes in fund balance - regulatory basis, the statements of revenues - regulatory basis, the statements of expenditures - regulatory basis and the statements of fund balance - regulatory basis of the various funds and the related notes to the financial statements for the years then ended as listed in the basic financial statements section of the accompanying table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the financial reporting provisions of the Division of Local Government Services, Department of Community Affairs, State of New Jersey ("Division"). Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and the requirements prescribed by the Division. Those standards and the requirements prescribed by the Division require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 14 Penn Plaza, Suite 1010 New York, NY Eisenhower Parkway, Suite 1850 Livingston, NJ Bartles Corner Road Flemington. NJ

13 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Basis for Adverse Opinion on Generally Accepted Accounting Principles As described in Note 1 to the financial statements, the financial statements are prepared by the City on the basis of the financial reporting provisions of the Division (regulatory basis), which is a basis of accounting other than accounting principles generally accepted in the United States of America, to meet the requirements of the Division. The effects on the financial statements of the variances between the regulatory basis of accounting described in Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material. Adverse Opinion on Generally Accepted Accounting Principles In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on Generally Accepted Accounting Principles paragraph, the financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the City as of December 31, 2015 and 2014, or the results of its operations and changes in fund balances for the years then ended. Unmodified Opinion on Regulatory Basis of Accounting In our opinion, the financial statements referred to above present fairly, in all material respects the balance sheets - regulatory basis of the various funds and account group of the City as of December 31, 2015 and 2014, and the results of its operations and changes in fund balances of such funds - regulatory basis for the funds for the year ended December 31, 2015 in accordance with the financial reporting provisions of the Division of Local Government Services, Department of Community Affairs, State of New Jersey as described in Note 1 to the financial statements. Report on Supplementary Information as Required by the Division in Accordance with the Regulatory-Basis Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplementary information, as defined in the table of contents as schedules 1- A through 15-F and the comments section and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards is presented for purposes of additional analysis as required by the Division and is not a required part of the 2015 regulatory basis financial statements of the City. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The supplementary information identified above is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the regulatory basis financial statements taken as a whole.

14 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July 20, 2016, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. David A. Kaplan Registered Municipal Accountant No. 433 Livingston, New Jersey July 20, 2016!JI M.v "/-' ~ WISS & COMPANY, LLP

15 ws A Partner to Grow With REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS INDEPENDENT AUDITORS' REPORT Honorable Mayor and Members of the City Council City of Asbury Park County of Monmouth Asbury Park, New Jersey We have audited, in accordance with the auditing standards generally accepted in the United States of America; audit requirements as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the "Division"); and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the regulatory basis financial statements of the City of Asbury Park ("City"), County of Monmouth, New Jersey as of and for the year ended December 31, 2015, and the related notes to the regulatory basis financial statements, which collectively comprise the City's basic regulatory basis financial statements, and have issued our report thereon dated July 20, 2016, in which we expressed an adverse opinion on the conformity of the statements with accounting principles generally accepted in the United States of America due to the differences between those principles and the financial reporting provisions of the Division. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the regulatory-basis financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. 14 Penn Plaza, Su ite 1010 New York, NY Eisenhower Parkway, Suite 1850 Li vingston, NJ Bartles Co rn er Ro ad Flemington, NJ

16 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did identify certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as items , , and that we consider to be material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's regulatory-basis financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying schedule of findings and questioned costs as items , , and City of Asbury Park's Response to Findings The City's response to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. The City's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Livingston, New Jersey July 20, 2016 David A. Kaplan Registered Municipal Accountant No. 433 (J/µ,., ~~ WISS & COMPANY, LLP

17 CURRENT FUND EXHIBITS

18 Exhibit A Sheet 1 of 2 CURRENT FUND COMPARATIVE BALANCE SHEETS - REGULATORY BASIS DECEMBER 31, 2015 AND 2014 December 31, Ref ASSETS Current Fund: Cash and Cash Equivalents 1-A $ 9,507, $ 5,652, Cash - Change Funds 2-A Due from State of New Jersey - Senior Citizens' and Veterans' Deductions 6-A 8, , Due from Federal Emergency Management Agency 11-A 396, , Prepaid Debt Service 28-A 642, , ,554, ,860, Receivables and Other Assets with Full Reserves: Delinquent Property Taxes Receivable 4-A 11, , Tax Title Liens Receivable 5-A 380, , Local District School Tax Overpaid 10-A 1, Other Liens Receivable - N. Versailles 29-A 174, Revenue Accounts Receivable 8-A 101, , Due from Animal Control Trust Fund 37-A 6, , Due from Trust Other Fund 38-A 351, , Due from Parking Utility Operating Fund 30-A 93, Due from Sewer Utility Operating Fund 34-A 8, Pilot Assessments Due from Emory Realty, LLC 36-A 46, , ,041, Deferred Charges: Special Emergency Authorizations 16-A 275, , ,681, ,271, Federal and State Grant Fund: Federal and State Grants Receivable 18-A 3,334, ,653, Due from Current Fund 17-A 1,145, , Due from General Capital Fund 21-A 336, ,479, ,766, Total Assets $ 16, 161, $ 11,037, See accompanying notes to financial statements.

19 Exhibit A Sheet 2 of 2 CURRENT FUND COMPARATIVE BALANCE SHEETS- REGULATORY BASIS DECEMBER 31, 2015 AND 2014 LIABILITIES, RESERVES AND FUND BALANCE Ref December 31, 2014 Current Fund: Liabilities: Appropriation Reserves Reserve for Sale of Municipal Assets Special Emergency Notes Payable Reserve for Encumbrances Prepaid Taxes Tax Overpayments Due to Parking Utility Capital Fund Due to General Capital Fund Due to Federal and State Grant Fund Payroll Deductions Payable Pilot Assessments Due to County Pledged Pilot Assessments Due to Trustee (RAB) County Added Taxes Payable Reserve for Master Plan Update Reserve for Hurricane Sandy Accounts Payable Reserve for Receivables and Other Assets Fund Balance Federal and State Grant Fund: Reserve for Federal and State Grants: Appropriated Unappropriated Due to Trust Other Fund Due to Grantor Reserve for Encumbrances Total Liabilities, Reserves and Fund Balance A-3,19-A $ 2,500, A 425, A 275, A 968, A 255, A 330, A 27-A 25, A 1,145, A 26-A 32, A 5, A 11, A 75, A 16, A 5, ,071, A 851, A-1 4, 758, ,681, A 4, 163, A 306, A 32-A 8, A ,479, $ 16,161, $ 1,289, , , , , , , , , , , , ,817, ,041, ,412, ,271, ,388, , , , , ,766, $ 11,037, See accompanying notes to financial statements.

20 Exhibit A-1 Sheet 1of2 CURRENT FUND COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE REGULATORY BASIS YEARS ENDED DECEMBER 31, 2015 AND 2014 Ref December 31, 2014 Revenue and Other Income Realized Fund Balance Utilized Miscellaneous Revenue Anticipated Receipts from Delinquent Taxes Receipts from Current Taxes Non-Budget Revenue Other Credits to Income: Unexpended Balance of Appropriation Reserves Current Budget Appropriations Cancelled lnterfunds Liquidated Prior Year's Local School Tax Overpayment Returned Federal and State Appropriated Reserves Cancelled A-1/A-2 $ 2,104, A-2 26,318, A-2 229, A-2 26,919, A-2 632, A 906, A A,34-A,37-A 105, A 1, A 109, $ 515, ,445, , ,617, , , , Total Revenues 57,326, ,996, Expenditures Budget and Emergency Appropriations: Within "CAP": Operations Including Contingent Deferred Charges and Statutory Expenditures Operations Excluded from "CAP": Other Operations Capital Improvements Municipal Debt Service Deferred Charges Excluded from "CAPS" County Taxes County Added and Omitted Taxes Local District School Tax Local District School Tax Advanced Prior Years Senior Citizens Deductions Disallowed Federal and State Grants Receivable Cancelled lnterfunds Advanced Refund of Prior Year's Revenue A-3 31,514, A-3 4,433, A-3 4,430, A-3 150, A-3 1,986, A-3 169, A 4,252, A 11, A 6,867, A 136, ,926, ,757, ,230, , , 158, , ,682, , ,785, , , , , Total Expenditures 53,951, ,898, See accompanying notes to financial statements.

21 Exhibit A-1 Sheet 2 of 2 CURRENT FUND COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE REGULATORY BASIS YEARS ENDED DECEMBER 31, 2015 AND 2014 December 31, Excess in Revenues Over Expenditures 3,374, ,097, Adjustment to Income Before Fund Balance: Expenditures included above which are by Statute Deferred Charges to Budgets of Succeeding Years A-3 75, Statutory Excess to Fund Balance $ 3,449, $ 2,097, Fund Balance, January 1 A 3,412, ,830, ,862, ,928, Decreased by: Utilized as Anticipated Revenue A-2 2, 104, , Fund Balance, December 31 A $ 4,758, $ 3,412, See accompanying notes to financial statements.

22 ExhibitA-2 Sheet 1of4 CURRENT FUND STATEMENT OF REVENUES - REGULATORY BASIS Fund Balance Anticipated A-1 $ Miscellaneous Revenues: Licenses: Alcoholic Beverages 8-A $ Other 8-A Fees and Permits 8-A Fines and Costs: Municipal Court 8-A Interest and Costs on Taxes 8-A Asbury Towers - In Lieu of Taxes 8-A Transportation Center Lease 8-A Anticipated Utility Operating Surplus - Parking Utility 8-A Zoning 8-A Transfer of Title 8-A Variance Fees 8-A Cookman Avenue Parking Garage - In Lieu of Taxes 8-A Total Miscellaneous Revenues State Aid Without Offsetting Appropriations: Consolidated Municipal Property Tax Relief Aid 8-A Energy Receipts Tax 8-A Transitional Aid 8-A Total State Aid Without Offsetting Appropriations Dedicated Uniform Construction Code Fees Offset \Mth Appropriations: Uniform Construction Code Fees 8-A Total Dedicated Uniform Construction Code Fees Offset with Appropriations Ref. Added by Original N.J.S.A. Amount Budget 40A:4-87 Realized 2,104, $ 3104, , , , , , , ,027, ,400, , , , , , , ,004, ,004, , , , , , , , , ,828, ,381, ,161, ,161, ,331, ,331, ,500, _1_,500, ,992, ~992, , , , , Excess/ (Deficit) $ 4, , , , (6,501.43) 23, , , , , ~ ~ , See accompanying notes to financial statements.

23 ExhibitA-2 Sheet2 of 4 CURRENT FUND STATEMENT OF REVENUES - REGULATORY BASIS YEAR ENDED DECEMBER Added by Original N.J.SA Amount Excess/ Ref. Budget 40A:4-87 Realized (Deficit) Special Items of General Revenue Anticipated With With Prior Written Consent of Director of Local Government Services - Public and Private Revenues Offset With Appropriations: Clean Communities Program A $ 34, $ 34, Recycling Tonnage Grant 18-A 31, , Waterfront Redevelopers Contribution 18-A 150, , Asbury Park Board of Education - School Resource Officer 18-A 283, , Asbury Park Board of Education - Camera Installation 18-A 299, , Madison Marquette - SDA Menu Items 18-A 41, , NJDMHS Mental Health Grant 18-A 114, , NJEDA - Boardwalk Streetscape Grant 18-A 924, , Private Source - Springwood Avenue Park 18-A 150, , Private Source - Boardwalk Streetscape Lighting 18-A $ 130, , Multi-Purpose Senior Center 18-A 31, , Drive Sober or Get Pulled Over 18-A 5, , , COPS Hiring Program A 200, , COPS Hiring Program A 250, , FEMA - Firefighter Grant 18-A 24, , Edward Byrne Memorial JAG Grant 18-A 52, , Rebuild by Design - Grant Writer 18-A 11, , Municipal Open Space Program - Monmouth County - Springwood Avenue Recreation Area - Phase 2 18-A 250, , Municipal Open Space Program - Monmouth County - Springwood Avenue Recreation Area - Phase 3 18-A 250, , ,051, $ 187, $ 3,239, Special Items of General Revenue Anticipated With Prior Written Consent of Director of Local Government Services - Other Special Items: Utility Operating Surplus of Prior Year - Parking Utility 8-A 597, , Uniform Fire Safety Act 8-A 39, , $ (853.76) Cable Television Franchise Agreement 8-A 202, , Ambulance Service Reimbursement 8-A 500, , (61,278.50) Payments in Lieu of Taxes - Redevelopment Projects 8-A 1,583, ,994, , Hotel Occupancy Tax 8-A 160, , , Payments in Lieu of Taxes: 550 Cookman Avenue 8-A 45, , (26, ) Emory Realty 8-A 105, , , Vive 8-A 168, , , Paramount Homes 8-A 140, , (68,028.00) 3,539, ,878, , See accompanying notes to financial statements.

24 ExhibitA-2 Sheet 3 of 4 CURRENT FUND STATEMENT OF REVENUES - REGULATORY BASIS Ref. Receipts from Delinquent Taxes A-1 $ Amount to be Raised by Taxes for Support of Municipal Budget: Local Tax for Municipal Purposes 4-A Minimum Library Levy 4-A Total Amount to be Raised by Taxes A-2 Total Budget Revenues Non-Budget Revenues A-1 Added by Original N.J.S.A. Amount Budget 40A:4-87 Realized 50, $ 229, ,346, ,603, , , ,821, ,078, ,711, $ 187, ,730, , Excess/ (Deficit) $ 5, , , ,656, ~ $ 42,711, $ 187, $ 45,363, $ 2,289, Ref. A-3 A-3, 18-A See accompanying notes to financial statements.

25 CURRENT FUND STATEMENT OF REVENUES - REGULATORY BASIS YEAR ENDED DECEMBER ExhibitA-2 Sheet 4 of 4 Analysis of Realized Revenues Ref. Allocation of Current Tax Collections: Collection Realized 4-A, A-1 $ 26,919, Allocated to: Local District School Tax A-1,10-A 6,867, County Tax A-1,3-A,9-A 4,264, Balance for Support of Municipal Budget Appropriations 15,787, Add: Appropriation "Reserve for Uncollected Taxes" A-3 290, Amount for Support of Municipal Budget Appropriations A-2 $ 16, Receipts from Delinquent Taxes: Delinquent Tax Collections Realized 4-A $ 35, Tax Title Lien Collections Realized 5-A 19, Other Liens Receivable Collected - N. Versailles 29-A 174, Total Delinquent Tax Revenue A-2 $ Analysis of Non-Budget Revenues Miscellaneous Revenues Not Anticipated: Insurance Refunds & Damage $ 140, Admin Fee 106, Certified Mail Fee DWI Inspection Fines 3, Sale of Recyclabels 8, Sign Advertising 7, Returned Petty Cash Marriage Licenses 5, Misc 32, Service Charges- Returned Check Garnishee Fees Bid Fees 1, PILOT Application Fees 9, Special Events Misc 5, Refund of PY Expenditures 69, Reimbursement of Expenditure 62, Rentals - Misc Concessions 7, Affidavit of Redemption 1, Relocation Fees 15, Police Records 14, Fire Reports Sale of Municipal Assets 31, Code Enforcement Birth Certificates Name Change on Certificates 1, Zoning Status Letter Cost Prior to Sale 54, Cost of Sale 24, Interest on Investments 21, % Senior & Vets Admin Fee A-2 $ 632, Less: Interest Received from General Capital Fund 27-A 7, A $ 624, See accompanying notes to financial statements.

26 ExhibitA-3 Sheet 1of5 CURRENT FUND STATEMENT OF EXPENDITURES - REGULA TORY BASIS Original Budget After Paid or Budget Modification Charged Encumbered Reserved Canceled GENERAL GOVERNMENT General Administration: Salaries and Wages $ 225, $ 213, $ 145, $ 67, Other Expenses 88, , , $ 11, , Human Resources: Other Expenses 72, , , Mayor and Council: Salaries and Wages 38, , , other Expenses 4, , , , Municipal Clerk: Salaries and Wages 178, , , , Other Expenses 35, , , , , Director of Communications: Salaries and Wages Financial Administration (Treasury): Salaries and Wages 333, , , , Other Expenses 77, , , , , Audit Services: Other Expenses 50, , , , Revenue Administration (Tax Collection): Salaries and Wages 257, , , , Other Expenses 30, , , , , Tax Assessment Administration: Salaries and Wages 93, , , Other Expenses 103, , , , , Economic Development: Salaries and Wages 88, , , , Other Expenses 10, , , Legal Services (Legal Department): Salaries and Wages 12, , , Other Expenses 310, , , , , Computerized Data Processing: Other Expenses 18, , , Cable TV Advisory Committee: Other Expenses 25, , , , , LAND USE ADMINISTRATION Planning Board: Salaries and Wages 189, , , , Other Expenses 48, , , , , Master Plan Update (Special Emergency) 75, , Zoning Board of Adjustment: Salaries and Wages 26, , , , Other Expenses 28, , , , , Engineering Services: Salaries and Wages 75, , , , Other Expenses 200, , , , , See accompanying notes to financial statements.

27 ExhibitA-3 Sheet2 of 5 CURRENT FUND STATEMENT OF EXPENDITURES - REGULA TORY BASIS Original Budget After Paid or Budget Modification Charged Encumbered Reserved Canceled GENERAL GOVERNMENT CODE ENFORCEMENT AND ADMINISTRATION Code Enforcement: Salaries and Wages $ 355, $ 355, $ 242, $ 113, Other Expenses 25, , , $ 5, , INSURANCE Liability Insurance 920, , 120, , , , Workers Compensation Insurance 1,900, ,700, ,462, , , Employee Group Insurance 5,250, ,250, ,882, , , Unemployment Insurance 150, , , , Payment for Health Insurance Opt Out 50, , , , PUBLIC SAFETY Police Department: Salaries and Wages 9,100, ,995, ,528, , Other Expenses 379, , , , , Fire Department: Salaries and Wages 4, 760, ,750, ,695, , Other Expenses 183, , , , , Municipal Prosecutors Office: Salaries and Wages 30, , , Other Expenses 3, , , PUBLIC WORKS Streets and Road Maintenance: Salaries and Wages (pg 22) 1, 100, , 100, , , Other Expenses 392, , , , , Solid Waste Collection: Salaries and Wages 124, , , , Other Expenses 1,277, ,277, ,195, , , Building and Grounds: Salaries and Wages 243, , , , Other Expenses 71, , , , , HEALTH AND HUMAN SERVICES Social Services: Salaries and Wages 146, , , , Other Expenses 22, , , , , PARKS AND RECREATION Recreation Services and Programs: Salaries and Wages 151, , , Other Expenses 123, , , , , See accompanying notes to financial statements.

28 ExhibitA-3 Sheet3 of 5 CURRENT FUND STATEMENT OF EXPENDITURES - REGULATORY BASIS Original Budget After Paid or Budget Modification Charged Encumbered Reserved Canceled GENERAL GOVERNMENT MUNICIPAL COURT Salaries and Wages Other Expenses PUBLIC DEFENDER Salaries and Wages SENIOR CITIZENS Salaries and Wages Other Expenses UNIFORM CONSTRUCTION CODE - APPROPRIATIQNS OFFSET BY DEDIATED REVENUES (N.J.A.C. 5: ) Construction Code Official: Salaries and Wages Other Expenses UNCLASSIFIED Street Lighting Telephone (excluding equipment acquisition) Gasoline Light, Heat and Power Fire Hydrant Rent Employee Flex Spending Account Contribution to Accumulated Absences Total Operations within "CAPS" Detail: Salaries and Wages Other Expenses (Including Contingent) DEFERRED CHARGES AND STATUTORY EXPENDITURES - MUNICIPAL WITHIN "CAPS" Deferred Charges: Prior Year Bills - Department of Public Works Statutory Expenditures: Contribution to: Public Employees' Retirement System Social Security System (0.A.S.I.) Police and Firemen's Retirement System Police and Firemen's Retirement System - Prior Year's Defined Contribution Retirement Plan Administrative Expenditures Pension Adjustment Fund Total Deferred Charges and Statutory Expenditures - Municipal within "CAPS" Total General Appropriations for Municipal Purposes within "CAPS" $ 283, $ 273, $ 261, , , , $ 13, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,439, ,514, , 176, , ,260, , 128, , 190, ,178, ,310, ,910, , , , , , , , , , , ,011, ,011, ,979, , , , , , , , , ~ , ,433, ,312, ,87:/,, ,947, ,489, , $ 11, , , , , , , , , , , ,369, , ,431, , , , , ,489, See accompanying notes to financial statements.

29 ExhibitA-3 Sheet4 of 5 CURRENT FUND STATEMENT OF EXPENDITURES - REGULATORY BASIS Original Budget After Paid or Budget Modification Charged Encumbered Reserved Canceled GENERAL GOVERNMENT OPERATIONS - EXCLUDED FROM "CAPS" Other Operations - Excluded from "CAPS": Maintenance of Free Public Library: Salaries and Wages Other Expenses BPP - Due to Board of Education Total Other Operations - Excluded from "CAPS" $ 324, $ 324, $ 320, , , , , , , , , , $ 4, , lnterlocal Municipal Service Agreements - Excluded from "CAPS": Monmouth County and Dispatch Services Total lnterlocal Munic. Service Agreements - Exel. from "CAPS" Public and Private Programs Offset by Revenues: Drive Sober or Get Pulled Over 2015 COPS Hiring Program Grant 2014 COPS Hiring Program Grant Recycling Tonnage Grant NJEDA - Boardwalk Streetscape Grant Other Expenses Other Expenses Asbury Park Board of Education Camera Installation Contribution from Private Source - Grant Writer NJDMHS - Mental Health Grant Contribution from Private Sources - Springwood Avenue Park Private Source - Boardwalk Streetscape Lighting Madison Marquette - SDA Menu Items Waterfront Redevelopers Contrib. - Police Asbury Park Board of Education School Resource Officer Clean Communities Program Multi Purpose Senior Center FEMA -Assistance to Firefighters Grant Edward Byrne Memorial JAG Grant Total Public and Private Programs Offset by Revenues Total Operations - Excluded from "CAPS" 657, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,239, ,239, ,242, ,430, ,419, , , , See accompanying notes to financial statements.

30 ExhibitA-3 Sheet 5 of 5 CURRENT FUND STATEMENT OF EXPENDITURES - REGULATORY BASIS YEAR ENDED DECEMBER Original Budget After Paid or Budget Modification Charged Encumbered Reserved Canceled GENERAL GOVERNMENT CAPITAL IMPROVEMENTS - EXCLUDED FROM "CAPS" Capital Improvement Fund $ 150, $ 150, $ 150, Total Capital Improvements Excluded from"caps" 150, ~ MUNICIPAL DEBT SERVICE - EXCLUDED FROM "CAPS" Payment of Bond Principal Interest on Bonds Interest on Notes Interest on TANS Green Trust Loan Program: Loan Repayments for Principal and Interest MCIA Lease NJEDA City Yard 723, , , , , , , , , , , , , , , , , , , , , $ Total Municipal Debt Service - Excluded from"caps" 1, ,986, ~ DEFERRED QHARGES - MUNICIPAb- EXCLUDED FROM"CAPS" Deferred Charges: Special Emergency Authorizations Special Emergency Authorizations 5 Years-Hurricane Sandy 69, , , , , , Total Deferred Charges - Municipal - Excluded from "CAPS" 169, ~ Total General Appropriations for Municipal Purposes Excluded from "CAPS" 6,548, ,736, ,725, $ 11, Total General Appropriations - Excluded from "CAPS" 6,548, ,736, , Subtotal General Appropriations 42,421, ,683, ,214, $ 968, ,500, Reserve for Uncollected Taxes 290, , , Total General Appropriations $ 42, 711, $ 42,97 4, $ 39,505, $ 968, $ 2, $ Detail: Original Budget Special Emergency Authorization - Master Plan Update Special Items of Anticipated Revenue N.J.S.A. 40A:4-87 Ref. A-2 Below Below 20-A A-2 $ 42,711, A-3,16-A 75, A A A-1 Detail: Cash Disbursed Reserve for Uncollected Taxes Appropriated Reserves - Federal and State Grant Fund Increase in Prepaid Debt Service Reserve for Master Plan Deferred Charges Above $ 42,974, A $ 35, 737, A-2 290, A 3,239, A (6,150.00) A-1,24-A 75, A Above $ 39,505, See accompanying notes to financial statements.

31 TRUST FUND EXHIBITS

32 Exhibit B TRUST FUND COMPARATIVE BALANCE SHEETS - REGULATORY BASIS DECEMBER 31, 2015 AND 2014 December 31, ASSETS Ref Animal Control Trust Fund: Cash and Cash Equivalents 1-B $ 12, $ 11, Trust Other Fund: Cash and Cash Equivalents 1-B 6,167, ,665, Investment 2-B 22, , Grants Receivable - CDBG 11-B 715, , Due From Federal and State Grant Fund 8-B 1, ,905, ,281, Total Assets $ 6,917, $ 7,293, LIABILITIES AND RESERVES Animal Control Trust Fund: Reserve for Animal Control Trust Fund Expenditures 3-B $ 6, $ 8, Reserve for Encumbrances 5-B Due to State of New Jersey 4-B 7.80 Due to Current Fund 16-B 6, , , , Trust Other Fund: Reserve for Encumbrances 12-B 22, , Reserves: Various Funds 7-B 3,602, ,587, RCA Programs 9-B 2,364, ,608, Miscellaneous 6-B 9, , CDBG 10-B 518, , Off-Duty Police Services 13-B 30, , Due to State of New Jersey 14-B 4, , Due to Current Fund 15-B 351, , ,905, ,281, Total Liabilities and Reserves $ 6,917, $ 7,293, See accompanying notes to financial statements.

33 GENERAL CAPITAL FUND EXHIBITS

34 Exhibit C GENERAL CAPITAL FUND COMPARATIVE BALANCE SHEETS - REGULATORY BASIS DECEMBER 31, 2015 AND 2014 ASSETS December 31, Ref Cash and Cash Equivalents 1-C,2-C $ 3,606, $ 3,983, Investment in Special Emergency Notes 1-C,2-C 275, , Due from Monmouth County Improvement Authority 14-C 350, , Intergovernmental Grant Receivable - N.J. Department of Transportation 12-C 903, NPP/Community Development Block Grant 12-C 114, , Due from Current Fund 10-C 25, , Deferred Charges to Future Taxation: Funded 3-C 9,497, ,334, Unfunded 4-C 7,812, ,712, Unfunded Capital Lease Obligations 16-C 578, ,176, Total Assets $ 23,161, $ 22,308, LIABILITIES, RESERVES AND FUND BALANCE Bond Anticipation Notes 13-C $ 4,600, $ 3,950, General Serial Bonds 7-C 8,779, ,502, Due to Federal and State Grant Fund 19-C 336, Green Acres Loans Payable 8-C 718, , Loan Payable - NJ EDA 5-C 37, Improvement Authorizations: Funded 9-C 880, , Unfunded 9-C 3,879, ,301, Capital Improvement Fund 11-C 45, , Capital Lease Obligations Payable 16-C 578, , 176, Reserve for Contractor Contribution 15-C 20, , Reserve for Regional Contribution Agreements 6-C 45, , Reserve for Payment of Bonds 17-C Reserve for Payment of Notes 20-C 8, , Reserve for Insurance Proceeds 18-C 1,278, ,278, Reserve for Encumbrances 22-C 483, , Contracts Payable 21-C 1,804, , Fund Balance C-1 40, , Total Liabilities, Reserves and Fund Balance $ 23,161, $ 22,308, There were Bonds and Notes Authorized But Not Issued of $3,212, and $1,762, at December 31, 2015 and 2014, respectively (Schedule 23-C). See accompanying notes to financial statements.

35 Exhibit C-1 GENERAL CAPITAL FUND STATEMENT OF FUND BALANCE-REGULATORY BASIS BALANCE. DECEMBER and 2014 c $ 40, See accompanying notes to finanical statements.

36 SEWER UTILITY FUND EXHIBITS

37 Exhibit D Sheet 1 of 2 SEWER UTILITY FUND COMPARATIVE BALANCE SHEETS - REGULATORY BASIS DECEMBER 31 I 2015 AND 2014 December 31, ASSETS Operating Fund: Cash and Cash Equivalents Receivables With Full Reserves: Consumer Accounts Receivable Sewer Liens Receivable 1-D 4-D 5-D $ 338, $ 4_1~0,'-7_1 o_.o_9_ 12, ,159, , , , , 171, Deferred Charges: Operating Deficit Total Operating Fund D-1,9-D 54, , , ,649, Capital Fund: Cash and Cash Equivalents Fixed Capital Fixed Capital Authorized and Uncompleted Unfunded Capital Lease Obligations Total Capital Fund 1-D,2-D 3-D 12-D 14-D, 15-D 1,254, ,279, ,234, ,241, ,589, ,582, ,695, , 305, , 773, ,408, Total Assets $ 46, 192, $ 49,057, See accompanying notes to financial statements.

38 Exhibit D Sheet 2 of 2 SEWER UTILITY FUND COMPARATIVE BALANCE SHEETS - REGULATORY BASIS DECEMBER 31, 2015 AND 2014 LIABILITIES, RESERVES AND FUND BALANCE December 31, Ref Operating Fund: Appropriation Reserves D-3,7-D $ 171, $ 190, Due to Asbury Partners, LLC 8-D 19, , Reserve for Encumbrances 21-D 84, , Accrued Interest on Bonds and Notes 17-D 103, , Due to Current Fund 18-D 8, Sewer Overpayments 10-D 13, , , , Reserve for Receivables D 26, ,171, Fund Balance D Total Operating Fund 418, ,649, Capital Fund: Bond Anticipation Note Payable 20-D 1,250, ,250, Serial Bonds Payable 13-D 17,084, ,430, Capital Lease Refunding Obligations Payable 14-D 8,695, ,215, Capital Lease Obligations Payable 15-D 1,090, Reserve for Amortization 6-D 14,214, ,868, Contracts Payable 16-D 813, Reserve for Encumbrances 21-D 42, Improvement Authorizations: Funded 11-D 69, , Unfunded 11-D 3,594, ,475, Fund Balance D-4 8, , Total Capital Fund 45, 773, ,408, $ 46, 192, $ 49,057, There were bonds and notes authorized but not issued of $2,584, as of December 31, 2015 and (Schedule 22-D). See accompanying notes to financial statements.

39 Exhibit D-1 SEWER UTILITY OPERATING FUND COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE - REGULATORY BASIS FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 December 31, Ref Revenue and Other Income Realized Fund Balance Utilized $ 195, Sewer Rents D-2 $ 4,324, ,501, Interest/Penalties on Delinquent Accounts D-2 38, , Sewer Connection Fees D-2 6, , Miscellaneous Revenues D-2 1, , Developer's Contribution for Debt Service D-2 690, , Other Credits to Income: Miscellaneous Revenue Not Anticipated 1, Unexpended Balance of Appropriation Reserves 7-D 166, , Current Year's Appropriations Cancelled D , Total Revenues 5,228, ,563, Expenditures Operating D-3 1,736, ,962, Deferred Charges and Statutory Expenditures D-3 110, , Debt Service D-3 3,435, ,560, Refund of Prior Years Revenue 30, Total Expenditures 5,282, ,630, Deferred Charge - Deficit in Operations D, 9-D $ (54,064.09) $ (66,803.66) Fund Balance, January 1 D $ $ 195, Decreased by: Utilized as Anticipated Revenue 195, Fund Balance, December 31 D $ $ See accompanying notes to financial statements.

40 Exhibit D-2 SEWER UTILITY OPERATING FUND STATEMENT OF REVENUES REGULATORY BASIS Anticipated Budget Realized (Deficit) Excess Sewer Rents Sewer Connection Fees Miscellaneous $ 4,528, $ 24, , Developers Contribution for Debt Service and Administrative Fees 690, ,324, , , , $ (204,023.31) (18,585.50) 2, Total Realized $ 5,282, $ 5,062, $ (220,295.21) Detail: Miscellaneous Revenue: Delinquent Penalties Sundry Interest D-1 D-1 D-1 D-3 $ D-1 38, , Above $ ==4=0=,6=13= =60= See accompanying notes to financial statements.

41 SEWER UTILITY OPERA TING FUND STATEMENT OF EXPENDITURES REGULATORY BASIS Exhibit D-3 AEEroEriations Adopted Budget After Paid or Budget Modification Charoed Reserved Canceled Operating: Salaries and Wages $ 565, $ 565, $ 538, $ 26, Other Expenses 1,115, , 115, ,010, , NJEIT Administrative Fee 56, , , , Total Operating 1,736, ,736, ,567, , Debt Service: Payment of Bond Principal 1,346, ,346, ,346, $ 0.20 Interest on Bonds 219, , , Interest on Notes 14, , , MCIA Capital Lease Principal 1,610, ,610, ,610, MCIA Capital Lease Interest 246, , , Total Debt Service 3,435, ,435, ,435, Deferred Charges: Deficit in 2014 Operations 66, , , Total Deferred Charges 66, , , Statutory Expenditures: Contribution to: Social Security System (OAS.I.) 43, , , , Total Statutory Expenditures 43, , , , Total Sewer Utility Appropriations $ 5,282, $ 5,282, $ 5, 111, $ 171, $ Ref. D-2 D-2 Below D D-1 Detail of Paid or Charged: Cash Disbursed 1-D $ 4,480, Accrued Interest on Bonds and Notes 17-D 479, Deferred Charges 9-D 66, Reserve for Encumbrances 21-D 84, Above $ 5, 111, See accompanying notes to financial statements.

42 Exhibit D-4 SEWER UTILITY CAPITAL FUND STATEMENT OF FUND BALANCE - REGULATORY BASIS BALANCE. DECEMBER 31, 2015 AND 2014 D $ 8, ===== See accompanying notes to financial statements.

43 BEACH UTILITY FUND EXHIBITS

44 Exhibit E BEACH UTILITY OPERATING FUND COMPARATIVE BALANCE SHEETS- REGULATORY BASIS AS OF DECEMBER 31, 2015 AND 2014 December 31, ASSETS Cash and Cash Equivalents 1-E $ 1,037, $ 391, Total Assets $ 1,037, $ 391, LIABILITIES. RESERVES AND FUND BALANCE Prepaid Beach Fees Appropriation Reserves Reserve for Encumbrances 4-E E-3,3-E 2-E,3-E $ 13, , , $ 12, , , , , Fund Balance E-1 961, , Total Liabilities, Reserves and Fund Balance $ 1,037, $ 391, See accompanying notes to financial statements.

45 Exhibit E-1 BEACH UTILITY OPERA TING FUND COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE- REGULATORY BASIS FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 December 31, Ref Revenue and Other Income Realized Fund Balance Utilized E-2 $ 125, $ 125, Receipts from Municipal Bathing E-2 1,815, ,235, Beach Chair Locker Rentals E-2 73, , Miscellaneous E-2 2, , Appropriation Reserves Lapsed 3-E 112, , Encumbrances Cancelled 2-E Total Revenues 2, 129, ,432, Expenditures Operating E-3 1, 166, ,098, Deferred Charges and Statutory Expenditures E-3 110, , Total Expenditures 1,276, ,205, Excess in Revenue/ Statutory Excess to Fund Balance 853, , Fund Balance, January 1 E 232, , ,086, , Decreased By: Uitlized as Anticipated Revenue E-2 125, , Fund Balance, December 31 E $ 961, $ 232, See accompanying notes to financial statements.

46 Exhibit E-2 BEACH UTILITY OPERA TING FUND STATEMENT OF REVENUES - REGULATORY BASIS FOR THE Anticipated Budget Realized Excess Operating Surplus Anticipated $ Receipts from Municipal Bathing Beach Chair and Locker Rentals Miscellaneous 125, ,121, , $ 125, ,815, , , $ 694, , , Total Realized $ 1,276, $ 2,016, $ 740, Ref. Miscellaneous Revenues: Detail: Interest 1-E E-3 $ E-1 2, Receipts from Municipal Bathing: Cash Receipts 1-E Prepaid Beach Fees Applied 4-E $ 1,802, , $ 1,815, See accompanying notes to financial statements.

47 Exhibit E-3 BEACH UTILITY OPERA TING FUND STATEMENT OF EXPENDITURES REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31 I 2015 Operating: Salaries & Wages Other Expenses Total Operating Deferred Charges and Statutory Expenditures: Statutory Expenditures: Public Employees Retirement System Social Security System (OAS.I.) Unemployment Compensation Insurance Appropriations Adopted Budget After Budget Modification $ 763, $ 763, , , , 166, , 166, , , , , , , Paid or Charcied Reserved $ 761, $ 1, , , , 156, , , , , ~ Total Deferred Charges and Statutory Expenditures 110, , , , Total Beach Utility Appropriations $ 1,276, $ 1,276, $ 1,230, $ 45, Ref. E-2 E-2 Detail of Paid or Charged: Cash Disbursed 1-E Reserve for Encumbrances 2-E Above Below $ 1,212, , $ 1,230, E See accompanying notes to financial statements.

48 PARKING UTILITY FUND EXHIBITS

49 Exhibit F PARKING UTILITY FUND COMPARATIVE BALANCE SHEETS - REGULATORY BASIS DECEMBER 31, 2015 AND 2014 December 31, Ref ASSETS Operating Fund: Cash and Cash Equivalents 1-F $ 1,729, $ 1,375, Capital Fund: Cash and Cash Equivalents 2-F 264, Fixed Capital 9-F 949, , Fixed Capital Authorized and Uncompleted 8-F 9, , Due from Current Fund 12-F 11, Unfunded Capital Lease Obligations 13-F 87, , Total Capital Fund 1,310, ,170, Total Assets $ 3,039, $ 2,545, LIABILITIES, RESERVES AND FUND BALANCE Operating Fund: Appropriation Reserves F-3,14-F $ 188, $ 74, Reserve for Encumbrances 3-F,14-F 21, , Accounts Payable F Accrued Interest on Notes 5-F 10, , Due to Current Fund 11-F 93, , , Fund Balance F-1 1,508, ,142, Total Operating Fund 1,729, ,375, Capital Fund: Improvement Authorizations - Unfunded 7-F 9, , Bond Anticipation Notes 6-F 800, , Capital Lease Obligations Payable 13-F 87, , Reserve for Amortization 10-F 158, , Reserve for Parking Improvements 14-F 27, Reserve for Payment of Notes 15-F 226, ,309, ,168, Fund Balance F-4 1, , Total Capital Fund 1,310, ,170, Total Liabilities, Reserves and Fund Balance $ 3,039, $ 2,545, There were no bonds or notes authorized but not issued as of December 31, 2015 and See accompanying notes to financial statements.

50 Exhibit F-1 PARKING UTILITY FUND COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE - REGULATORY BASIS FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 December 31, Ref Revenue and Other Income Realized Municipal Parking Fees F-2 $ 3,073, $ 2,452, Miscellaneous 7, Other Credits to Income: Miscellaneous Revenue Not Anticipated F-2 3, , Unexpended Balance of Appropriation Reserves 4-F 72, , Total Revenues 3,150, ,645, Expenditures Operating F-3 685, , Capital Improvements F-3 175, , Deferred Charges and Statutory Expenditures F-3 47, , Debt Service F-3 275, , Surplus (General Budget) F-3 1,004, ,004, Refund of Prior Year Revenue F Total Expenditures 1-F 2,187, ,970, Excess in Revenue/ Statutory Excess to Fund Balance 963, , Fund Balance, January 1 F 1,142, ,064, , 105, ,739, Decreased by: Fund Balance Anticipated by Current Fund 1-F 597, , Fund Balance, December 31 F $ 1,508, $ 1,142, See accompanying notes to financial statements.

51 Exhibit F-2 PARKING UTILITY OPERATING FUND STATEMENT OF REVENUES REGULATORY BASIS FOR THE YEAR ENDED DECEMBER Anticipated Budget Realized Receipts from Municipal Parking Miscellaneous $ 2,187, $ 3,073, , $ 886, , Total Realized $ 2, 187, $ 3,077, $ 890, Miscellaneous Revenues: Detail: Interest Income Above F-3 F-1,1-F $ ==3=,8=37=.2=2= See accompanying notes to financial statements.

52 Exhibit F-3 PARKING UTILITY OPERATING FUND STATEMENT OF EXPENDITURES REGULATORY BASIS FOR THE Appropriations Adopted Budget After Paid or Budget Modification Charged Reserved Operating: Salaries & Wages $ 265, $ 315, $ 303, $ 11, Other Expenses 420, , , , Total Operating 685, , , , Capital Improvements: Paving of Parking Lot 175, , , , Total Capital Improvements 175, , , , Debt Service: Interest on Notes 7, , , Capital Lease 267, , ~ Total Debt Service 275, , ~ Statutory Expenditures: Public Employees Retirement System 15, , , Social Security System (OAS.I.) 17, , , , Unemployment Compensation Insurance 15, , ~ Total Deferred Charges and Statutory Expenditures 47, , , , Surplus (General Budget) 1,004, ,004,000.00!_, 004' Total Parking Utility Appropriations $ 2,187, $ 2,187, $ 1,998, $ 188, Ref. F-2 F-2 Below F Detail of Paid or Charged: Cash Disbursed 1-F $ 1,969, Reserve for Encumbrances 3-F 21, Accrued Interest on Notes 5-F 7, Above $ 1,998, See accompanying notes to financial statements.

53 Exhibit F-4 PARKING UTILITY CAPITAL FUND STATEMENT OF FUND BALANCE BALANCE DECEMBER AND 2014 F $ ==1=, 7=68=.0=0= See accompanying notes to financial statements.

54 GENERAL FIXED ASSETS ACCOUNT GROUP EXHIBIT

55 GENERAL FIXED ASSETS ACCOUNT GROUP COMPARATIVE STATEMENTS OF GENERAL FIXED ASSETS-REGULATORY BASIS DECEMBER 31, 2015 AND 2014 Exhibit G December General Fixed Assets Land $ 110,287, $ 110,287, Buildings 22,406, ,406, Vehicles and Equipment 7,606, ,608, $ 140,300, $ 139,302, Investment in General Fixed Assets $ 140,300, $ 139,302, See accompanying notes to financial statements.

56 NOTES TO BASIC FINANCIAL STATEMENTS

57 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Summary of Significant Accounting Policies Reporting Entity The Governmental Accounting Standards Board (GASB) has established criteria to be used to determine which component units should be included in the financial statements of the oversight entity. The Division of Local Government Services, Department of Community Affairs, State of New Jersey ("Division") requires the financial statements of the City of Asbury Park ("City") to be reported separately. The City is an instrumentality of the State of New Jersey, established to function as a municipality. The City Council consists of elected officials and is responsible for the fiscal control of the City. Except as noted below, the financial statements of the City include every board, body, officer or commission supported and maintained wholly or in part by funds appropriated by the City, as required by N.J.S.A. 40A:5-5. Accordingly, the financial statements of the City do not include the operations of the municipal library or the local school district, inasmuch as their activities are administered by separate boards. Description of Funds The GASB is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. GASB codification establishes three fund types to be used by general purpose governmental units when reporting financial position and results of operations in accordance with accounting principles generally accepted in the United States (GAAP). The accounting policies of the City conform to the accounting principles applicable to municipalities, which have been prescribed by the Division. Such principles and practices are designed primarily for determining compliance with legal provisions and budgetary restrictions and as a means of reporting on the stewardship of public officials with respect to public funds. Under this method of accounting, the financial transactions and accounts of the City are organized on the basis of funds and an account group which is different from the fund structure required by GAAP. A fund or account group is an accounting entity with a separate set of self-balancing accounts established to record the financial position and results of operations of a specific government activity. As required by the Division, the City accounts for its financial transactions through the following individual funds and account group: Current Fund - records resources and expenditures for governmental operations of a general nature, including federal and state grant funds. Trust Fund - records the receipts, custodianship and disbursement of monies in accordance with the purpose for which each reserve was established.

58 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Summary of Significant Accounting Policies - (Continued) General Capital Fund - records the receipt and disbursement of funds for the acquisition of general infrastructure and other capital facilities, other than those acquired through the Current Fund. General bonds and notes payable are recorded in this fund offset by deferred charges to future taxation. Beach Utility Operating Fund - account for the operation and acquisition of capital facilities of the municipally-owned beach. Parking Utility Operating and Capital Funds - account for the operation and acquisition of capital facilities of the municipally-owned parking facilities. Sewer Utility Operating and Capital Funds - account for the operation and acquisition of capital facilities of the municipally-owned sewer utility. General Fixed Assets Account Group - utilized to account for land, buildings, machinery, equipment and vehicles that have been acquired by other governmental funds, other than utility funds. Basis of Accounting The accounting principles and practices prescribed for municipalities by the State of New Jersey differ in certain respects from GAAP applicable to local governmental units. The more significant accounting policies and differences in the State of New Jersey are as follows: A modified accrual basis of accounting is followed with minor exceptions. Revenues - are recorded when received in cash except for certain amounts which are due from other governmental units. Federal and state grants are realized as revenue when anticipated in the City's budget. Receivables for property taxes are recorded with offsetting reserves on the comparative balance sheet - regulatory basis of the City's Current Fund; accordingly, such amounts are not recorded as revenue until collected. Other amounts that are due the City, which are susceptible to accrual are also recorded as receivables with offsetting reserves and recorded as revenue when received. GAAP requires revenues to be recognized in the accounting period when they become susceptible to accrual, reduced by an allowance for doubtful accounts. Expenditures - are recorded on the "budgetary" basis of accounting. Generally expenditures are recorded when an amount is encumbered for goods or services through the issuance of a purchase order in conjunction with the encumbrance accounting system. Unexpended or uncommitted appropriations at December 31 are reported as expenditures through the establishment of appropriation reserves unless cancelled by the governing body. Outstanding encumbrances at December 31 are reported as a cash liability in the financial statements and constitute part of the City's statutory appropriation reserve balance. GAAP requires expenditures in the Current Fund to be recognized in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-term debt, which should be recognized when due.

59 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Summary of Significant Accounting Policies - (Continued) Appropriation Reserves - unexpended appropriation balances are automatically created at December 31st of each year and recorded as liabilities, except for amounts which may be cancelled by the governing body. Appropriation reserves are available, until lapsed at the close of the succeeding year, to meet specific claims, commitments or contracts incurred during the preceding fiscal year. Lapsed appropriation reserves are recorded as income. Appropriations for principal payments on outstanding general capital and utility bonds and notes are provided on the cash basis; interest on general capital indebtedness is on the cash basis, whereas interest on utility indebtedness is on the accrual basis. Appropriation reserves are not established under GAAP. Encumbrances - contractual orders at December 31 are reported as expenditures through the establishment of encumbrances payable. Under GAAP, encumbrances outstanding at year end are reported as reservations of fund balance because they do not constitute expenditures or liabilities. Deferred Charges - the basis of accounting utilized by the City requires that certain expenditures be deferred, and raised as items of appropriation in budgets of succeeding years. These deferred charges include the three general categories, overexpenditures, emergency appropriations and deficits in operations. Overexpenditures occur when expenditures recorded as "paid or charged" exceed available appropriation balances. Emergency appropriations occur when, subsequent to the adoption of a balanced budget, the governing body authorizes the establishment of additional appropriations based on unforeseen circumstances or for other special purposes as defined by statute. Overexpenditures and emergency appropriations are deducted from total expenditures in the calculation of operating results and are established as assets for deferred charges on the Current Fund, Beach Utility Fund, Parking Utility Fund or Sewer Utility Fund balance sheets - regulatory basis. GAAP does not permit the deferral of overexpenditures to succeeding budgets. In addition, GAAP does not recognize expenditures based on the authorization of an appropriation. Instead, the authorization of special purpose expenditures, such as the preparation of tax maps or revaluation of assessable real property, would represent the designation of fund balance. Deficits in current year's operations are deferred charges and must be raised in the subsequent year's budget. GAAP does not permit the deferral of current year's deficits in operations to be deferred to future years. Compensated Absences - expenditures relating to obligations for unused vested accumulated vacation and sick pay are not recorded until paid. GAAP requires that the amount that would normally be liquidated with expendable available financial resources be recorded as an expenditure in the Current Fund and the remaining obligations be recorded as a long-term obligation. Sale of Municipal Assets - the proceeds from the sale of municipal assets can be held in a reserve until anticipated as a revenue in a future budget. GAAP requires such proceeds to be recorded as a revenue in the year of sale.

60 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Summary of Significant Accounting Policies - (Continued) lnterfunds - the advances from the Current Fund are reported as interfund receivables with offsetting reserves, which are created by charges to operations. Income is recognized in the year the receivables are liquidated. lnterfund receivables in the other funds are not offset by reserves. GAAP does not require the establishment of an offsetting reserve. Inventories of Supplies - the costs of inventories of supplies for all funds are recorded as expenditures at the time individual items are purchased. The cost of inventories are not included on the various comparative statements of assets, liabilities and fund balance - regulatory basis. GAAP does not require the establishment of an offsetting reserve. Fixed Capital - Parking and Sewer Utility - the property and equipment purchased by the Parking Utility and Sewer Utility Funds are recorded in its capital account at cost and is adjusted for dispositions and abandonments. The amount reported for reserve for amortization of fixed capital acquired on the balance sheets - regulatory basis of the Parking Utility and Sewer Utility Capital Funds represent the aggregate charges (capital outlay and debt service) to the operating budget and reserve for capital outlay for the costs of the acquisitions of property and equipment and proceeds from grants-in-aid. The Parking Utility and Sewer Utility Funds do not record depreciation of property and equipment. GAAP does not require the establishment of a reserve for amortization of fixed capital, whereas it does require the recognition of depreciation of property and equipment by the Parking Utility and Sewer Utility Funds. Fixed Assets - Current Fund and General Capital Fund - the property and equipment purchased by the Current Fund and the General Capital Fund are recorded as expenditures at the time of purchase and are capitalized in the General Fixed Assets Account Group. Net Pension Liability and Pension Related Deferred Outflows of Resources and Deferred Inflows of Resources and Pension Expense - the requirements of GASS Statement 68, Accounting and Financial Reporting for Pensions and GASS Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date - an amendment of GASB Statement No. 68 require governmental entities to record their distributive share of net pension liability, deferred outflows of resources, deferred inflows of resources and total pension related expense. Accounting principles applicable to municipalities, which have been prescribed by the Division, do not require the recording of these liabilities, deferrals and expenses, but do require the disclosure of these amounts. Refer to Note 7 - Pension Plans for these disclosures. Regulatory-Basis Financial Statements The GASB Codification also defines the financial statements of a governmental unit to be presented in the basic financial statements to be in accordance with GAAP. The City presents the financial statements listed in the table of contents which are required by the Division and which differ from the financial statements required by GAAP. In addition, the Division requires the financial statements listed in the table of contents to be referenced to the supplementary schedules. This practice differs from GAAP.

61 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Summary of Significant Accounting Policies - (Continued) Comparative Data Comparative data for the prior year has been presented in order to provide an understanding of changes in the City's financial position and operations. However, comparative data has not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. Subsequent Events The City has reviewed and evaluated all events and transactions from December 31, 2015 through July 20, 2016, the date that the financial statements were available for issuance. The effects of those events and transactions that provide additional pertinent information about conditions that existed at December 31, 2015 have been recognized in the accompanying financial statements. The following were identified: Bond Ordinance was adopted on February 10, 2016, authorizing an amendment of bond ordinance 3036 increasing the ordinance and the bonds authorized by $550, Bond Ordinance was adopted on April 27, 2016, authorizing various capital improvements and appropriating $1, 750, therefor and authorizing the issuance of $1,662, in bonds or notes to finance part of the cost thereof. Bond Ordinance was adopted on April 27, 2016, authorizing various 2016 roadway improvements and appropriating $1,250, therefor and authorizing the issuance of $1, 187, in bonds or notes to finance part of the cost thereof. Refunding Bond Ordinance was adopted on May 11, 2016, providing for the refunding of certain outstanding qualified 2009 general improvement bonds and authorizing the issuance of not to exceed $4,200, in refunding bonds to effect such refunding. Bond Ordinance was adopted on July 13, 2016, providing for improvements to 4th Avenue and appropriating $2,700,000 therefor and authorizing the issuance of not to exceed $2,700,000 in bonds or notes to finance part of the cost thereof. GASBs Implemented in the 2015 Fiscal Year In June 2012, GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions - an amendment of GASB Statement No. 27 ("GASB No. 68"). The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. It also improves information provided by state and local governmental employers about financial support for pensions that is provided by other entities.

62 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Summary of Significant Accounting Policies - {Continued) In November 2013, GASB issued Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date - an amendment to GASB Statement No. 68 ("GASB 71 "). The objective of this Statement is to improve accounting and financial reporting by addressing an issue in Statement No. 68 concerning the transition provisions related to certain pension contributions made to defined benefit pension plans prior to the implementation of that Statement by employers and nonemployer contributing entities. The City does not follow generally accepted accounting principles. The GASB will not result in a change in the City's assets, liabilities and contribution requirements. However, it did result in additional note disclosures as required by the GASBs. Refer to Note 7 - Pension Plans for these disclosures. Recent Pronouncements The GASB issued Statement 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions in June This Statement replaces the requirements of Statement 45 and the primary objective of this Statement is to improve accounting and reporting by state and local governments for postemployment benefits other than pensions (other postemployment benefits or OPEB). It also improves information provided by state and local government employers about financial support for OPEB that is provided by other entities. The requirements of this Statement are effective for financial statements for reporting periods beginning after June 15, Management has not yet determined the impact of the Statement on the financial statements. The GASB issued Statement 77, Tax Abatement Disclosures in August This Statement is intended to improve financial reporting by requiring disclosure of tax abatement information about a reporting government's own tax abatement agreements and those that are entered into by other governments and that reduce the reporting government's tax revenues. The requirements of this Statement are effective for financial statements for reporting periods beginning after December 15, Management has not yet determined the impact of the Statement on the financial statements. 2. Deposits and Investments Deposits New Jersey statutes permit the deposit of public funds in institutions located in New Jersey that are insured by the Federal Deposit Insurance Corporation (FDIC) or by any other agencies of the United States that insure deposits or the State of New Jersey Cash Management Fund. New Jersey statutes require public depositories to maintain collateral for deposits of public funds that exceed insurance limits as follows: The market value of the collateral must equal five percent of the average daily balance of public funds; or

63 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Deposits and Investments - (Continued) If the public funds deposited exceed 75 percent of the capital funds of the depository, the depository must provide collateral having a market value equal to 100 percent of the amount exceeding 75 percent. All collateral must be deposited with the Federal Reserve Bank, the Federal Home Loan Bank Board or a banking institution that is a member of the Federal Reserve System and has capital funds of not less than $25,000,000. Cash and cash equivalents include petty cash, change funds, amounts on deposit and short'-term investments with original maturities of three months or less. Investments are stated at cost, which approximates fair value. As of December 31, 2015 and 2014, cash and cash equivalents of the City consisted of checking and money market accounts and a special emergency self-funded note. The carrying amount of the City's deposits at December 31, 2015 was $23,917, (excludes petty cash) and the bank balance was $24,576, Of this amount, $550, was covered by federal depository insurance and the remaining $24,025, was covered by a collateral pool maintained by the bank as required by New Jersey Statutes in accordance with the New Jersey Governmental Unit Deposit Protection Act ("GUDPA"). The carrying amount of the City's deposits at December 31, 2014 was $19,770, (excludes petty cash) and the bank balance was $20,031, Of this amount, $750, was covered by federal depository insurance and the remaining $19,010, was covered by a collateral pool maintained by the banks as required by New Jersey Statutes in accordance with the New Jersey Governmental Unit Deposit Protection Act ("GUDPA"). GASB Statement No. 40 requires that the City disclose whether its deposits are exposed to custodial credit risk (risk that in the event of failure of the counterparty, the City would not be able to recover the value of its deposit or investment). Deposits are considered to be exposed to custodial credit risk if they are: uncollateralized (securities are not pledged to the depositor), collateralized with the securities held by the pledging financial institution, or collateralized with securities held by the pledging financial institution's trust department or agent but not in the name of the City. The City does not have a policy for the management of custodial credit risk, other than depositing all of its funds in banks covered by GUDPA. At least five percent of the City's deposits were fully collateralized by funds held by the financial institution, but not in the name of the City. Due to the nature of GUDPA, further information is not available regarding the full amount that is collateralized. Investments New Jersey statutes permit the City to purchase the following types of securities. a. Bonds or other obligations of the United States or obligations guaranteed by the United States. b. Bonds of any Federal Intermediate Credit Bank, Federal Home Loan Bank, Federal National Mortgage Association or of any United States Bank for Cooperatives which have a maturity date not greater than twelve months from the date of purchase.

64 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Deposits and Investments - (Continued) c. Bonds and other obligations of the City or bonds or other obligations of school districts, which are part of the City or school districts located within the City. d. Bonds or other obligations, having a maturity date of not more than twelve months from the date of purchase, which are approved by the New Jersey Department of Treasury, Division of Investments. e. Bonds or other obligations of the United States or obligations guaranteed by the United States. f. Bonds of any Federal Intermediate Credit Bank, Federal Home Loan Bank, Federal National Mortgage Association or of any United States Bank for Cooperatives which have a maturity date not greater than twelve months from the date of purchase. g. Bonds and other obligations of the City or bonds or other obligations of school districts, which are part of the City or school districts located within the City. h. Bonds or other obligations, having a maturity date of not more than twelve months from the date of purchase, which are approved by the New Jersey Department of Treasury, Division of Investments. Custodia/ Credit Risk: All of the City's investments are insured or registered in the City's name or held by an entity as its agent in the City's name. The City does not have a policy for custodial credit risk for its investments. Concentration of Credit Risk: The City places no limit on the amount the City may invest in any one issuer. Credit Risk: The City does not have an investment policy regarding the management of credit risk. GASB 40 requires that disclosures be made as to the credit rating of all debt security investments except for obligations of the U.S. Government or investments guaranteed by the U.S. Government. Interest Rate Risk: The City does not have a policy to limit interest rate risk, however, its practice is typically to invest in investments with short maturities. Marketable securities were donated to the Children's Welfare Fund in the Trust Other Fund. These marketable securities are recorded at cost at $22,296.00, which is less than estimated market value. Other than the marketable securities described above and a self- funded $275, investment in special emergency notes, the City had no other investments during 2015 and School Debt The City of Asbury Park Board of Education is a Type II School District. As such, the members of the Board of Education are elected by the citizens of the City and school appropriations are set by a Board of Education. Bonds and notes authorized by voter referendum to finance capital expenditures are general obligations of the Board of Education and, as such, are reported on the Statement of Net Position of the Board of Education.

65 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Long-Term Debt The Local Bond Law governs the issuance of bonds to finance general municipal capital expenditures. All bonds issued by the City as general obligation bonds backed by the full faith and credit of the City. The following represents bonds outstanding: General Capital Fund $6, 145, Bonds due in annual installments of $280, to$ 445, through April 2028 at interest rates ranging from 4% to 4.75% issued under the Municipal Qualified Bond Act. $2,905, MCIA Serial Bonds due in annual installments of $105, to $210, through January 15, 2031 at interest rates ranging from 2.50% to 5.00%. $341, MCIA Serial Bonds due in annual installments of $14, to $22, through December 1, 2032 at interest rates ranging from 2% to 4%. $1,535, MCIA Refunding Bonds due in annual installments of $182, to $204, through April 1, 2022 at an interest rate of 3.00%. Total General Capital Fund Sewer Utility Capital Fund NJ Environmental Infrastructure Trust 2006 A due in annual installments of $30, to $45, through August 2026 at interest rates ranging from 4% to 5%. NJ Environmental Infrastructure Trust - Fund 2006 due in semiannual installments of $1, to $85,922.1 O through August 2026 at zero interest. NJ Environmental Infrastructure Trust 2007 due in annual installments of $100, to $165, through August 2027 at interest rates ranging from 4.00% to 5.00%. NJ Environmental Infrastructure Trust - Fund 2007 due in semiannual installments of $6, to $310, through August 2027 at zero interest. Sewer Utility Bonds 2009 due in annual installments of $15, to $20, through April 2028 at interest rates ranging from 4.00% to 4.75%. NJ Environmental Infrastructure Trust 2010 due in annual installments of $100, to $265, through August 2028 at interest rates ranging from 3.00% to 5.00% NJ Environmental Infrastructure Trust- Fund 2010 due in semiannual installments of $199, to $399, through September 2029 at zero interest. $ 4,640, ,485, , ,351, $ 8,779, $ 410, , ,565, , 789, , ,675, ,821,933.48

66 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Long-Term Debt- (Continued) Sewer Utility Capital Fund - (continued) 2012 MCIA Revenue Bonds due in annual installments of $20, to $32, through December 2032 at interest rates ranging from 2.00<J 2013 MCIA Refunding Bonds due in annual installments of $32, to $36, through April 2022 at an interest rate of 3.00% Total Sewer Utility Capital Fund $ 427, , $ 17,084, The following summarizes the changes in long-term debt for 2015 and January December ~ 1, 2015 Decreases 31,2015 General Improvements $ 9,502, $ 723, $ 8,779, Sewer Improvements 18,430, ,346, ,084, $ 27,932, $ 2,069, $ 25,863, January December ~ 1, 2014 Increases Decreases 31, 2014 General Improvements $ 10, 142, $ 1,560, $ 2,200, $ 9,502, Sewer Improvements 19,747, , ,586, ,430, $ 29,889, $ 1,830, $ 3,787, $ 27,932, Borrowing Power Under N.J.S. 40A:2-6 As Amended Equalized valuation basis* - December 31, /2% of equalized valuation basis Net debt Remaining borrowing power $ $ $ 1,349, 106, ,218, ,614, ,603, * Equalized valuation basis is the average of the equalized valuation of real estate, including improvements, and the assessed valuation of Class II Railroad Property of the City of the last three (3) preceding years.

67 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Long-Term Debt - (Continued) Summary of Statutory Debt Condition (Annual Debt Statement) The summarized statement of debt condition which follows is prepared in accordance with the required method of setting up the Annual Debt Statement and indicates a statutory net debt of 1.602%. Gross Debt Deductions Net Debt Local School District Debt $ 1,940, $ 1,940, $ Sewer Utility Debt 29,614, ,300, ,313, Parking Utility Debt 800, , General Debt 17,309, , ,301, $ 49,664, $ 28,049, $ 21,614, Net debt $21,614, divided by equalized valuation basis per N.J.S. 40A:2-2, as amended, $1,349, 106, equals 1.602%. Summary of Municipal Debt (excluding Type II School Debt) The City's debt is summarized as follows: Issued: General: Bonds, Notes and Loans $ 14,097, $ 14,284, Parking Utility: Notes 800, , Sewer Utility: Bonds and Notes 18,334, ,680, Capital Lease Obligations 8,695, ,305, Total issued 41,927, ,070, Less: Reserve for payment of bonds and notes 235, , Net debt issued 41,692, ,311, Authorized but not issued: General: Bonds and notes 3,212, ,762, Sewer Utility: Bonds and notes 2,584, ,584, Total authorized but not issued 5, 796, ,346, Net bonds and notes issued and authorized but not issued $ 47,488, $ 48,658,388.88

68 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Long-Term Debt - (Continued) Schedule of Annual Debt Service for Principal and Interest for Bonded Debt Issued and Outstanding Calendar General CaQital Fund Years Principal Interest Total 2016 $ 582, $ 370, $ 952, , , , , , , , , , , , , ,070, , ,014, ,339, , ,622, , , , $ 8, 779, $ 2,849, $ 11,628, Calendar Sewer Utility CaQital Fund Years Principal Interest Total 2016 $ 1,364, $ 227, $ 1,592, ,376, , ,587, ,403, , ,596, ,417, , ,592, ,426, , ,584, ,305, , ,826, ,729, , ,819, , , , $ 17,084, $ 1,578, $ 18,662, Schedule of Sewer Capital Lease Obligations Payable Calendar Sewer Ca~ital Lease and Refunding Obligations Years Principal Interest Total 2016 $ 1,675, $ 406, $ 2,081, ,700, , ,034, ,730, , ,987, ,775, , ,951, ,815, , ,906, $ 8,695, $1,266, $ 9,961,

69 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Long-Term Debt - (Continued) Green Trust Loan Agreements Year Principal Interest Total 2016 $ 77, $ 13, $ 91, , , , , , , , , , , , , , , , $ 718, $ 67, $ 786, Bond anticipation notes Bond Anticipation notes, which are as per the table below, are issued to temporarily finance capital projects, and must be paid off within ten years or retired by the issuance of bonds. Interest Maturity Fund Rate Date Amount General Capital 1.00% 6/17/16 $ 4,600, Sewer Utility Capital 1.00% 6/17/16 1,250, Parking Utility Capital 1.00% 6/17/16 800, $ 6,650, Special emergency notes Interest Maturity Description Rate Date Amount Hurricane Sandy 0.00% 6/28/16 $ 275, $ 275, Fund Balances Appropriated The following fund balances at December 31, 2015 were appropriated in the 2016 budget (as introduced): Current Fund $ 2,508,495.26

70 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Fund Balances Appropriated - (Continued) The following fund balances at December 31, 2014 were appropriated in the 2015 budget (as adopted): Current Fund Beach Utility Operating Fund $ 2, 104, , Property Taxes Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied based on the final adoption of the current year municipal budget, and are payable in four installments on February 1, May 1, August 1 and November 1. The City bills and collects its own property taxes and also the taxes for the County and local school district. The collections and remittance of county and school taxes are accounted for in the Current Fund. City property tax revenues are recognized when collected in cash and any receivables are recorded with offsetting reserves on the comparative balance sheet - regulatory basis of the City's Current Fund. Taxes collected in advance are recorded as cash liabilities in the financial statements and are as follows: 7. Pension Plans Balance December Prepaid taxes $ 255, $ 265, Substantially, all City employees participate in the Public Employees' Retirement System or the Police and Firemen's Retirement System. The Division of Pensions within the Treasury Department of the State of New Jersey is the administrator of the funds and charges municipalities annually for their respective contributions. The plans provide retirement and disability benefits, annual cost sharing multiple-employer defined benefit plans and as such do not maintain separate records for each municipality in the state and, therefore, the actuarial data for the City is not available. The Division of Pensions issues publicly available financial reports for each of the plans that include financial statements and required supplementary information. The reports may be obtained by writing the State of New Jersey, Division of Pensions. Covered employees are required by State statute to contribute a certain percentage of their salary to the plan. Each member's percentage is based on age determined at the effective date of enrollment. In addition, the PERS and PFRS bill the City annually at an actuarially determined rate for its required contribution. The current rate is 6.92% and 10%, respectively, of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended by the Board of Trustees of the respective plan. The City's contributions to the PERS for the years ended December 31, 2015, 2014 and 2013 were $677,763, $666, and $703, respectively, equal to the required contributions for each year. The City's contributions to the PFRS for the years ended December 31, 2015, 2014 and 2013 were $3,011,785.00, $3, 127, , and $3,280,345.00, respectively, equal to the required contributions for each year.

71 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Pension Plans - (Continued) Other Post-Retirement Benefits Other Than Pension State Health Benefits Program (SHBP) Plan Description: The City contributes to the State Health Benefits Program (SHBP) a costsharing, multiple-employer defined benefit post-employment healthcare plan administered by the State of New Jersey Division of Pension and Benefits. SHBP was established in 1961 under N.J.S.A. 52: et seq. to provide health benefits to State employees, retirees, and their dependents. The SHBP was extended to employees, retirees, and dependents of participating local public employers in Local employers must adopt a resolution to participate in the SHBP. Rules governing the operation and administration of the program are found in Title 17, Chapter 9 of the New Jersey Administrative Code. SHBP provides medical, prescription drugs, mental health/substance abuse, and Medicare Part B reimbursement to retirees and their covered dependents. The State Health Benefits Commission is the executive body established by statute to be responsible for the operation of the SHBP. The State of New Jersey Division of Pensions and Benefits issues a publicly available financial report that includes financial statements and required supplementary information for the SHBP. That report may be obtained by writing to: State of New Jersey Division of Pensions and Benefits, P.O. Box 295, Trenton, NJ or by visiting their website at pdf. Plan Coverage: All active employees, including their dependents, are eligible to participate in the SHBP, upon completion of a sixty day waiting period. Retirees with twenty five years or more of active service with the City are also eligible to participate in the SHBP. Funding Policy: Participating employers contractually contribute based on the amount of premiums attributable to their retirees. Post-retirement medical benefits under the plan have been funded on a pay-as-you-go basis since Prior to 1994, medical benefits were funded on an actuarial basis. Contributions to pay for the health premiums of participating employees in the SHBP are billed to the City on a monthly basis. Eligible employees and retirees have the option of choosing from six medical benefit plans (NJ Direct15, NJ Direct10, Aetna, Freedom10, Aetna Freedom15, Aetna HMO or Horizon HMO) with rates ranging from $ for a single participant to $1, for family coverage. The City's contributions to SHBP for post-retirement benefits for the years ended December 31, 2014 and 2013 were $1,299, and $1,433,790.90, respectively, which equaled the required contributions for each year.

72 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Pension Plans - (Continued) Pension Deferral Liabilities The State of New Jersey enacted P.L. 2009, C.19, which authorized the State Department of Treasury, Division of Pensions and Benefits to provide non-state contributing employers the option of paying an amount that represents a fifty percent (50%) reduction of the normal and accrued liability payment of the required contributions to the PERS and PFRS. The deferral amounts are to be paid off over a fifteen year period from April 1, 2012 to April 1, The City opted to defer 50% of its 2009 PERS and PFRS obligations. The amounts deferred were $351, for PERS and $1,299, for PFRS. During the years ended December 31, 2015 and 2014, the following changes occurred in the pension deferral liabilities: January 1, December 31, 2015 Reductions 2015 PERS $ 311, $ 15, $ 296, PFRS 1,151, , ,079, $ 1,463, $ 87, $ 1,375, January 1, December 31, 2014 Reductions 2014 PERS $ 326, $ 14, $ 311, PFRS 1,204, , ,151, $ 1,531, $ 67, $ 1,463, Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Public Employee's Retirement System (PERS) At December 31, 2015 and 2014, the City's liability for its proportionate share of the net pension liability was $15,361,517 and $13,382,879, respectively. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2014, which was rolled forward to June 30, The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating entities, actuarially determined. At June 30, 2015, the City's proportion was percent, which was a decrease of from its proportion measured as of June 30, 2014.

73 City of Asbury Park Notes to Basic Financial Statements Years ended December31, 2015 and Pension Plans - {Continued) At December 31, 2015, the City's deferred outflows of resources and deferred inflows of resources related to PERS were from the following sources: Changes of assumptions Net difference between projected and actual earnings on pension plan investments Differences between expected and actual experience Changes in proportion and differences between City contnbutions and proportionate share of contnbutions City's contnbutions subsequent to the measurement date Deferred Outflows of Resources $ 1,649, , ,164 $ 2,310,340 Deferred Inflows of Resources $ 246, ,027 $ 1,146,011 $294, 164 is reflected above as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions would be recognized in pension expense, if the financial statements were prepared in accordance with generally accepted accounting principles as follows: Year ended December 31: 2016 $ $ 126, , , , , ,165

74 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Pension Plans-(Continued) Actuarial Assumptions The total pension liability for the June 30, 2015 measurement date was determined by an actuarial valuation as of July 1, 2014, which was rolled forward to June 30, This actuarial valuation used the following actuarial assumptions, applied to all periods included in the measurement: Inflation rate Salary increases Thereafter Investment rate of return 3.04% % based on age % based on age 7.90% The actuarial assumptions used in the July 1, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2008 to June 30, Mortality Rates Mortality rates were based on the RP-2000 Combined Healthy Male and Female Mortality Tables (setback 1 year for males and females) for service retirement and beneficiaries of former members with adjustments for mortality improvements from the base year of 2012 based on Projection Scale AA. The RP-2000 Disabled Mortality Tables (setback 3 years for males and setback 1 year for females) are used to value disabled retirees. Long-Term Rate of Return In accordance with State statute, the long-term expected rate of return on plan investments (7.90% at June 30, 2015) is determined by the State Treasurer, after consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries.

75 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Pension Plans - (Continued) Best estimates of arithmetic real rates of return for each major asset class included in PERS's target asset allocation as of June 30, 2015 are summarized in the following table: Target Long-Term Expected Asset Class Allocation Real Rate of Return Cash 5.00% 1.04% Core Bonds 1.75% 1.64% Intermediate-Term Bonds 10.00% 1.79% Mortgages 2.10% 1.62% High Yield Bonds 2.00% 4.03% Inflation-Indexed Bonds 1.50% 3.25% Broad US Equities 27.25% 8.52% Developed Foreign Markets 12.00% 6.88% Emerging Market Equities 6.40% 10.00% Private Equity 9.25% 12.41% Hedge FlUlds I Absolute Return 12.00% 4.72% Real Estate (Property) 2.00% 6.83% Commodities 1.00% 5.32% Global Debtrex US 3.50% -0.40% REIT 4.25% 5.12% % Discount rate The discount rate used to measure the total pension liability was 4.90% as of June 30, This single blended discount rate was based on the long-term expected rate of return on pension plan investments of 7.90%, and a municipal bond rate of 3.80% as of June 30, 2015 based on the Bond Buyer GO 20-Bond Municipal Bond Index which includes tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made based on the average of the last five years of contributions made in relation to the last five years of recommended contributions. Based on those assumptions, the plan's fiduciary net position was projected to be available to make projected future benefit payments of current plan members through Therefore, the long-term expected rate of return on plan investments was applied to projected benefit payments through 2033, and the municipal bond rate was applied to projected benefit payments after that date in determining the total pension liability. Sensitivity of the City's proportionate share of the net pension liability to changes in the discount rate

76 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Pension Plans - (Continued) The following presents the City's proportionate share of the net pension liability as of December 31, 2015 calculated using the discount rate as disclosed above as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.90 percent) or 1-percentage-point higher (5.90 percent) than the current rate: At1% At Current At1% Decrease Discount Rate Increase (3.90%) (4.90%) (5.90%) City's proportionate share of the net pension liability $ 19,092,486 $ 15,361,517 $ 12,233,499 Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in the separately issued financial report for the State of New Jersey Public Employees Retirement System. Additional Information Collective balances at June 30, 2015 are as follows: Collective deferred outflows of resources Collective deferred inflows of resources Collective net pension liability- Local Group City's Proportion $ 2,946,265,815 $ 360,920,604 $ 22,447,996, % The collective pension expense for the Local Group for the measurement period ended June 30, 2015 is $1,472,586,715. The average of the expected remaining service lives of all plan members is and 6.44 years for 2015 and 2014, respectively. Police and Firemen's Retirement System (PFRS) At December 31, 2015 and 2014, the City's liability for its proportionate share of the net pension liability was $62,370,338 and $46,374,297, respectively. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2014, which was rolled forward to June 30, The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating entities, actuarially determined. At June 30, 2015, the City's proportion was percent, which was an increase of from its proportion measured as of June 30, 2014.

77 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Pension Plans - {Continued) At December 31, 2015, the City's deferred outflows of resources and deferred inflows of resources related to PFRS were from the following sources: Changes of assumptions Differences between expected and actual experience Net difference between projected and actual earnings on pension plan investments Deferred Outflows of Resources $ 11,515,114 Deferred Inflows of Resources $ 537,964 1,085,501 Changes in proportion and differences between City contnbutions and proportionate share of contnbutions 634, ,678 City contnbutions subsequent to the measurement date 1,415,791 $ 13,565,776 $ 2,404,143 $1,415, 791 is reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions would be recognized in pension expense, if the financial statements were prepared in accordance with generally accepted accounting principles as follows: Year ended December 31: 2016 $ 1,835, ,835, ,835, ,018, ,219,707 $ 9,745,842

78 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Pension Plans - {Continued) Actuarial Assumptions The total pension liability for the June 30, 2015 measurement date was determined by an actuarial valuation as of July 1, 2014, which was rolled forward to June 30, This actuarial valuation used the following actuarial assumptions, applied to all periods included in the measurement: Inflation rate Salary increases Thereafter Investment rate of return 3.04% % based on age % based on age 7.90% The actuarial assumptions used in the July 1, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2010 to June 30, Mortality Rates Mortality rates were based on the RP-2000 Combined Healthy Mortality Tables projected one year using Projection Scale AA and one year using Projection Scale BB for male service retirements with adjustments for mortality improvements from the base year based on Projection Scale BB. Mortality rates were based on the RP-2000 Combined Healthy Mortality Tables projected fourteen years using Projection Scale BB for female service retirements and beneficiaries with adjustments for mortality improvements from the base year of 2014 based on Projection Scale BB. Long-Term Rate of Return In accordance with State statute, the long-term expected rate of return on plan investments is determined by the State Treasurer, after consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. Best estimates of arithmetic real rates of return for each major asset class included in PFRS's target asset allocation as of June 30, 2015 are summarized in the following table:

79 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Pension Plans- (Continued) Asset Class Cash U.S. Treasuries Investment Grade Credit Mortgages High Yield Bonds Inflation-Indexed Bonds Broad US Equities Developed Foreign Equities Emerging Market Equities Private Equity Hedge Funds I Absolute Retu Real Estate (Property) Commodities Global Debt ex US REIT Target Allocation 5.00% 1.75% 10.00% 2.10% 2.00% 1.50% 27.25% 12.00% 6.40% 9.25% 12.00% 2.00% 1.00% 3.50% 4.25% % Long-Term Expected Real Rate of Return 1.04% 1.64% 1.79% 1.62% 4.03% 3.25% 8.52% 6.88% 10.00% 12.41% 4.72% 6.83% 5.32% -0.40% 5.12% Discount rate The discount rate used to measure the total pension liability was 5. 79% as of June 30, This single blended discount rate was based on the long-term expected rate of return on pension plan investments of 7.90%, and a municipal bond rate of 3.80% as of June 30, 2015 based on the Bond Buyer GO 20-Bond Municipal Bond Index which includes tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made based on the average of the last five years of contributions made in relation to the last five years of recommended contributions. Based on those assumptions, the plan's fiduciary net position was projected to be available to make projected future benefit payments of current plan members through Therefore, the long-term expected rate of return on plan investments was applied to projected benefit payments through 2045, and the municipal bond rate was applied to projected benefit payments after that date in determining the total pension liability. Sensitivity of the City's proportionate share of the net pension liability to changes in the discount rate

80 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Pension Plans - (Continued) The following presents the City's proportionate share of the net pension liability as of December 31, 2015 calculated using the discount rate as disclosed above as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (4.79 percent) or 1-percentage-point higher (6.79 percent) than the current rate: At1% At Current At.1% Decrease Discount Rate Increase (4.79%) (5.79%) (6.79%) City's proportionate share of the net pension liability $ 82,223,907 $ 62,370,338 $ 46, 181,527 Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in the separately issued financial report for the State of New Jersey Police and Firemen's Retirement System. Additional Information Collective balances at June 30, 2015 are as follows: Collective deferred outflows of resources Collective deferred inflows of resources Collective net pension liability- Local Group $ 3,075,206,294 $ 433,559,708 $ 18, 117,234,618 City's Proportion % Collective pension expense for the Local Group for the measurement period ended June 30, 2015 is $1,619,458, The average of the expected remaining service lives of all plan members is 5.53 and 6.17 years for 2015 and 2014, respectively. Special Funding Situation Under N.J.S.A 43:16A-15, local participating employers are responsible for their own contributions based on actuarially determined amounts, except where legislation was passed which legally obligated the State if certain circumstances occurred. The amounts contributed on behalf of the local participating employers under this legislation is considered to be a special funding situation and the State is treated as a nonemployer contributing entity. The nonemployer contributing entities' total proportionate share of the collective net pension liability that is associated with the City as of June 30, 2015 is % and the nonemployer contributing entities' contribution for the year ended June 30, 2015 was $284, The State's proportionate share of the net pension liability attributable to the City for the year ended December 31, 2015 was $5,469,

81 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Compensated Absences As discussed in Note 1 and in accordance with accounting principles prescribed by the Division, the cash basis of accounting is followed for recording the City's liability related to unused vacation and sick pay. The City permits certain employees within limits to accumulate unused vacation and sick pay, which may be taken as time off or paid at a later date at an agreed upon rate. The estimated current cost of such unpaid compensation would approximate $3,562, and $3,870, at December 31, 2015 and 2014, respectively. In accordance with New Jersey accounting principles, this amount is not reported as an expenditure or liability in the accompanying financial statements. 9. Tax Appeals There is one tax appeal pending before the State Tax Court of New Jersey requesting a reduction of assessments for the year 2015 and prior. Any reduction in assessed valuation will result in a refund of prior years taxes in the year of settlement, which may be funded from tax revenues, through the establishment of a reserve or by the issuance of refunding bonds per N.J.S. 40A:2-51. The City has not made a provision for these appeals in the event that the tax reductions are granted. In accordance with the National Council on Governmental Accounting Statement 4, Accounting and Financial Reporting Principles for Claims and Judgments and Compensated Absences, the City charges to current fund operations or a reduction of current tax collections, all state board judgments rendered during the year which will be paid from expendable available resources. The City's share of the County taxes paid on any successful tax appeal would result in appropriate reductions applied against the County tax levy of the following year. 10. Commitments and Contingencies The City receives financial assistance from the State of New Jersey and the U.S. Government in the form of grants. Entitlement to the funds is generally conditional upon compliance with terms and conditions of the grant agreements and applicable regulations, including the expenditure of the funds for eligible purposes. Substantially all grants, entitlements and cost reimbursements are subject to financial and compliance audits by the granters. As a result of these audits, costs previously reimbursed could be disallowed and require repayment to the granter agency. As of December 31, 2015, the City estimates that no material liabilities will result from such audits. The City is involved in certain legal proceedings, the resolution and impact on the financial statements of which, individually or in the aggregate, in the opinion of management as advised by legal counsel, would not be significant to the accompanying financial statements.

82 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Risk Management The City participates in a Joint Insurance Fund ("JIF"), which currently serves as administrator of the City's insurance program. The joint insurance pool is a public utility risk pool currently operating as a common risk management and insurance program for municipalities in New Jersey. The JIF covers all City claims in excess of various deductibles and is funded by City budget appropriations to pay for premiums that are assessed annually. The JIF is expected to be selfsustaining through member premiums, of which the City portion is reported as expenditure in the City's financial statements. In addition, the City is not aware of any claims pending that have a demand in excess of these coverages. 12. Deferred Compensation The City of Asbury Park offers its employees a Deferred Compensation Plan, created in accordance with the provisions of N.J.S. 43:15B-1 et. seq. and the Internal Revenue Code, Section 457. The plan, available to all municipal employees, permits them to defer of a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. Statutory and regulatory requirements governing the establishment and operation of Deferred Compensation Plans have been codified in the New Jersey Administrative Code under the reference N.J.A.C. 5:37. The "Small Business Job Protective Act of 1996" revised several provisions of Section 457 of the Internal Revenue Code. A provision of the act required that all existing plans be modified to provide that the funds be held for the exclusive benefit of the participating employees and their beneficiaries. The administrators for the City of Asbury Park Deferred Compensation Plan are Axa Equitable and Nationwide Financial Solutions. The plan's assets are not the property of the City and therefore are not presented in the financial statements.

83 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and lnterfund Receivables and Payables The following are reflected as interfund receivables and payables on the various balance sheets - regulatory basis: lnterfund lnterfund Fund Receivable Payable Current Fund $ 357, $ 1, 170, Federal and State Grant Fund 1, 145, General Capital Fund 25, Animal Control Trust Fund 6, Other Trust Fund 351, $ 1,528, $ 1,528, The interfund between the Current Fund and the Federal and State Grant Fund is a result of the normal interaction between these two funds. The interfund between the Current Fund and the Other Trust Fund is a result of a prior year's transaction. The interfund between the Current Fund and the Animal Control Trust Fund is a result of the excess in the Reserve for Animal Control Trust Fund being due to the Current Fund. The City will attempt to liquidate all interfunds within one year. 14. Leases Monmouth County Improvement Authority Monmouth County Improvement Authority (MCIA) - The City entered into various capital equipment lease programs with MCIA. The leases are for various equipment that is owned by the MCIA and to which the City has a bargain purchase option at the end of the lease period in the amount of $1.00. The following table depicts the principal and interest due on the MCIA leases. Year Ending Dec. 31, Principal Interest Total 2016 $ 336, $ 25, $ 361, , , , , , , , , , , , , , , $ 578, $ 42, $ 620,630.00

84 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Leases (Continued) Parking Meter Capital Equipment Leases On June 9, 2011, the City entered into an equipment lease for 60 Luke Base Parking Meters. The lease term was for 60 months and the monthly lease payment amount is $13, On August 12, 2011 the city entered into a similar lease for 40 additional Luke Base Parking Meters. The lease term on the August 12, 2011 lease was for 60 months and the monthly lease payment amount is $8, Monthly lease payments are funded by the City's Parking Utility Operating Fund. The total amount of the combined lease obligations unpaid at December 31, 2015 and 2014 was $87, and $340, , respectively. The following table depicts the principal and interest due on the parking meter capital equipment leases. Year Ending Dec. 31, Principal Interest Total 2016 $ 87, $ 1, $ 89, Deferred Charges to be Raised in Succeeding Years' Budgets Certain expenditures are required to be deferred to budgets of succeeding years. At December 31, 2015, the following deferred charges are shown on the Comparative Balance Sheets of the various funds as follows: Balance Balance to December 31, 2016 Budget Succeeding 2015 Appropriation Budgets Current Fund: Special Emergency Authorizations Per N.J.S.A. 40A:4-53 $ 275, $ 115, $ 160, Sewer Utility Operating Fund: 2015 Deficit in Operations $ 54, $ 54,064.09

85 City of Asbury Park Notes to Basic Financial Statements Years ended December 31, 2015 and Non-Recourse Redevelopment Area Bonds In 2013, the City received positive findings from the Local Finance Board regarding the issuance of not to exceed $58,000, in non-recourse redevelopment area bonds. The City issued a portion of those $58,000, non-recourse redevelopment area bonds on July 18, 2013 when it issued $1,055, Redevelopment Area Bonds (Waterfront Redevelopment Area Infrastructure Project), Series 2013A (Non-Recourse). The bonds are not a general obligation of the City. The bonds are not secured by ad valorem taxation. The bonds are secured solely by a pledge of a portion of special assessments the City collects that are generated within a portion of the Waterfront Redevelopment Area. Upon collection, the City records a liability for the pledged portion of the assessment. In March, 2015, the City also received positive findings from the Local Finance Board regarding the issuance of an additional not to exceed $1,250, in Redevelopment Area Bonds for a Hotel Project. These bonds, when issued will also not be secured by ad valorem taxation and will be secured solely by a pledge of a portion of special assessments the City collects that are generated within a portion of the Waterfront Redevelopment Area (Block 4104 Infrastructure Project). These bonds are also not a general obligation of the City. Upon collection, the City records a liability for the pledged portion of the assessment.

86 SUPPLEMENTARY DATA

87 CURRENT FUND SCHEDULES

88 Schedule 1-A CURRENT FUND SCHEDULE OF CASH AND CASH EQUIVALENTS Ref. Current Fund BALANCE, DECEMBER 31, 2014 A $ 5,652, INCREASED BY Taxes Receivable 4-A $ 26,421, Tax Title Liens 5-A 19, Taxes Prepaid 22-A 255, Other Liens Receivable - New Versailles 29-A 174, Due from State of New Jersey - Ch.20, P.L A 25, Miscellaneous Revenue Not Anticipated A-2 624, Revenue Accounts Receivable 8-A 23,032, Due from Federal and State Grant Fund 17-A 1,761, Due from Parking Utility Operating Fund 30-A 93, Due from Sewer Utility Operating Fund 34-A 8, Due from Animal Control Fund 37-A 2, Pilot Assessments Due to County 26-A 114, Pledged Pilot Assessments Due to Trustee (RAB) 35-A 108, Pilot Assessment Due from Emory Realty 36-A 46, Tax Overpayments 23-A 217, Due from Federal Emergency Management Agency 11-A 167, Special Emergency Notes 31-A 275, Reserve for Sale of Municipal Assets 12-A 425, ,775, ,427, DECREASED BY 2015 Appropriations A-3 35,737, Appropriation Reserves 19-A 849, County Taxes 9-A 4,252, County Added Taxes 3-A 7, Pilot Assessments Due to County 26-A 90, Due from Federal and State Grant Fund 17-A 1,420, Reserve for Encumbrances 20-A 5, Due to Parking Utility Capital Fund 7-A 11, Due to General Capital Fund 27-A 274, Local District School Tax 10-A 6,865, Special Emergency Notes Redeemed 31-A 300, Pledged Pilot Assessments Due to Trustee 35-A 105, Payroll Deductions Payable A ,920, BALANCE, DECEMBER 31, 2015 A $ 9,507,343.99

89 Schedule 2-A CURRENT FUND SCHEDULE OF CHANGE FUNDS BALANCE, DECEMBER 31, 2015 AND 2014 Ref. A $ ===== Detail: Tax Collector's Office City Clerk's Office $ $

90 CURRENT FUND SCHEDULE OF COUNTY ADDED TAXES PAYABLE Schedule 3-A BALANCE. DECEMBER 31 I 2014 A $ 7, INCREASED BY 2015 County Added Taxes DECREASED BY Cash Disbursed BALANCE. DECEMBER A-1,A-2 1-A A 11, , , $ 11,690.85

91 Schedule 4-A Sheet 1of2 CURRENT FUND SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY Balance December31, &YY Senior Citizens/ Veterans' Tax Deductions Added Collections Overpayments Allowed/ Taxes Applied Disallowed Cancellations and Adjustments Transferred to Tax Title Liens Balance December31, $ 31, $ 4, $~ $ $ , , , $ 26,942, , $ 265, ,385, $ 242, $ 26, , $ 81, $ 11, $ 31, $ 26,942, $ 78, $ 265, $ 26,421, $ 242, $ 26, $ 4, $ 81, $ 11, Ref. A 4-A 4-A 22-A A-2, 1-A 23-A 6-A 5-A A

92 Schedule 4-A Sheet 2 of 2 CURRENT FUND SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY Analysis of 2015 Tax Levy Tax Yield: General Purpose Tax 4-A,Below $ 26,942, Ref. Tax Levy: Local District School Tax 10-A $ 6,867, County Tax 9-A 4,252, Local Tax for Municipal Purposes A-2 15,346, Minimum Library Levy A-2 474, Add: Additional Tax Levied Above $ 26,942,245.15

93 Schedule 5-A CURRENT FUND SCHEDULE OF TAX TITLE LIENS RECEIVABLE Ref. BALANCE. DECEMBER A $ 255, INCREASED BY Transfers from Taxes Receivable 4-A $ 81, Interest and Costs on Tax Sale 5-A 1, Adjustment 5-A 62, , DECREASED BY Collections BALANCE, DECEMBER 31, 2015 A-2/1-A A 400, , $ 380,723.59

94 CURRENT FUND SCHEDULE OF DUE FROM STATE OF NEW JERSEY PER CHAPTER 20, P.L Schedule 6-A Ref. BALANCE. DECEMBER 31 I 2014 A INCREASED BY Senior Citizens Deductions Per Tax Billing 4-A $ 10, Veterans Deductions Per Tax Billing 4-A 16, $ 7, , , DECREASED BY Cash Receipts 1-A 25, BALANCE, DECEMBER 31, 2015 A $ 8,060.62

95 Schedule 7-A CURRENT FUND SCHEDULE OF DUE TO PARKING UTILITY CAPITAL FUND YEAR ENDED DECEMBER 31 I 2015 BALANCE. DECEMBER DECREASED BY Cash Disbursed BALANCE. DECEMBER A 1-A A $ 11, , $=====

96 Schedule 8-A CURRENT FUND SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE Balance Balance December 31, Accrued December 31, Ref in 2015 Realized 2015 Licenses: Alcoholic Beverages A-2 $ 99, $ 99, Other A-2 154, , Fees and Permits A-2 298, , Fines and Costs: Municipal Court A-2 $ 80, ,421, ,400, $ 101, Interest and Costs on Taxes A-2 81, , Asbury Towers in Lieu of Taxes A-2 184, , Consolidated Municipal Property Tax Relief Aid A-2 8,161, , 161, Energy Receipts Tax A-2 5,331, ,331, Transitional Aid A-2 1,500, ,500, Ambulance Service Reimbursement A-2 438, , Uniform Construction Code A-2 826, , Uniform Fire Safety Act A-2 38, , Cable Television Franchise Agreement A-2 202, , Transportation Center Lease A-2 14, , Zoning A-2 10, , Transfer of Title A-2 38, , Variance Fees A-2 16, , Cookman Avenue Parking Garage - In Lieu of Taxes A-2 78, , Utility Operating Surplus of Prior Year - Parking A-2 597, , Anticipated Utility Operating Surplus - Parking A-2 1,004, ,004, Payments in Lieu of Taxes - Redevelopment A-2 1,994, ,994, Hotel Occupancy Tax A-2 193, , Other PILOTS: 550 Cookman Avenue A-2 18, , Emory Realty, LLC A-2,A , , Vive A-2 184, , Paramount Homes A-2 72, , $ 80, $ 23,100, $ 23,079, $ 101, Ref. A Below A Detail: Cash Receipts 1-A $ 23,032, Received from Emory Realty, LLC 36-A 46, Above $ 23,079,085.15

97 Schedule 9-A CURRENT FUND SCHEDULE OF COUNTY TAXES PAYABLE BALANCE. DECEMBER A $ INCREASED BY 2015 Tax Levy: General County County Health County Open Space Preservation A-1,A-2,4-A $ 3,956, , , ,252, DECREASED BY Cash Disbursements BALANCE. DECEMBER A A 4,252, ,252, $=====

98 Schedule 10-A CURRENT FUND SCHEDULE OF LOCAL DISTRICT SCHOOL TAX PAYABLE (OVERPAID) BALANCE. DECEMBER A,A-1 $ (1,643.00) INCREASED BY Levy Certified By County Tax Board Calendar Year 2015 A-1,A-2,4-A 6,867, ,865, DECREASED BY Cash Disbursed 1-A 6,865, Ref. BALANCE, DECEMBER 31, 2015 A $

99 Schedule 11-A CURRENT FUND SCHEDULE OF DUE FROM FEDERAL EMERGENCY MANAGEMENT AGENCY BALANCE. DECEMBER 31 I 2014 A $ 563, DECREASED BY Cash Receipts 1-A 167, BALANCE, DECEMBER A $ 396,109.47

100 Schedule 12-A CURRENT FUND SCHEDULE OF RESERVE FOR SALE OF MUNICIPAL ASSETS BALANCE. DECEMBER 31 I 2014 A $ INCREASED BY Cash Received BALANCE. DECEMBER A A $ 425, ,000.00

101 Schedule 13-A FEDERAL AND STATE GRANT FUND SCHEDULE OF RESERVE FOR ENCUMBRANCES BALANCE. DECEMBER A $ 64, DECREASED BY Cash Disbursed by Current Fund 17-A 63, BALANCE, DECEMBER 31, 2015 A $ =====

102 FEDERAL AND STATE GRANT FUND SCHEDULE OF RESERVE FOR ST ATE AND FEDERAL GRANTS - UNAPPROPRIATED Schedule 14-A Federal: Edward Byrne Justice Assistance $ 52, Multi-Purpose Senior Center 31, Balance December 31, 2014 Received Transferred to Approp. Reserve Realized Balance as December 31, Revenue 2015 $ 52, , State: Hazardous Discharge Site Remediation 38, EDA - Cyber District 16, Drunk Driving Enforcement Fund $ 8, Recycling Tonnage Grant: , , NJDOT - North Beach Boardwalk Local Aid 50, Body Armor 8, EDA - Bikeway Grant 7, Local: Redeveloper Contribution - Special Police 75, $ 31, , , , , , , , , Total $ 303, $ 35, $ 31, $ 306, Ref. A 17-A A-2/18-A A

103 FEDERAL AND STATE GRANT FUND SCHEDULE OF APPROPRIATED RESERVES Schedule 15-A Sheet 1 of 4 Transferred from 2015 Budget Appropriations Balance Appropriation Balance Grant January 1, 2015 Budget By40A:4-87 Expended Reimbursed Cancelled December 31, 2015 N.J. Dept of Human Services-Mental Health Grant: $ $ 114, $ , $ , Clean Communities Program: , , , , , , , , , Green Communities Program , , Monmouth County Open Space Program Monmouth County Open Space Program - Phase 2 Monmouth County Open Space Program - Phase 3 246, , , $ 89, , , , Recycling Tonnage Grant 48, , , NJ Dept of Law and Public Safety Body Armor Replacement Body Armor Replacement Body Armor Replacement , , , , , ,

104 FEDERAL AND STATE GRANT FUND SCHEDULE OF APPROPRIATED RESERVES Schedule 15-A Sheet 2 of 4 Grant Balance January 1, 2015 Transferred from 2015 Budget Appropriations Appropriation Balance Budget By40A:4-87 ~ended Reimbursed Cancelled December 31, 2015 Boardwalk Streetscape - Private Contribution $ 130, $ 130, NJ Department of Transportation: Local Aid - Drummond and Prospect Urban Aid $ 250, , , , NJ Economic Development Authority: Hazardous Discharge Site Remediation: Other Springwood Avenue 2012 Block 36 Project 6, , , , , , , , NJ Highway Safety: Drunk Driving Enforcement Fund Drunk Driving Enforcement Fund Drunk Driving Enforcement Fund Drunk Driving Prevention Program Pedestrian Safety Act Over the Limit Under Arrest Drive Sober or Get Pulled Over Drive Sober or Get Pulled Over Drive Sober or Get Pulled Over , , , , , , , , $ , , $ 5, , , , , , NJ Alcohol Education and Rehabilitation Fund: Asbury Park BOE - Video Camera Security System 299, , , U.S. Department of Justice: COPS Hiring Recovery Program COPS Hiring Recovery Program COPS Hiring Recovery Program COPS Hiring Recovery Program , , , , , , , , , , , ,442.16

105 FEDERAL AND STATE GRANT FUND SCHEDULE OF APPROPRIATED RESERVES Schedule 15-A Sheet 3 of 4 Transferred from 2015 Budget Appropriations Balance Appropriation Balance Grant Justice Assistance Grant Justice Assistance Grant - Local Solicitation Justice Assistance Grant Justice Assistance Grant Justice Assistance Grant Ed Byrne Justice Assistance Grant January 1, 2015 $ 3, , , Budget By40A:4-87 ~ended $ 52, Reimbursed Cancelled $ 3, December 31, 2015 $ , , , URBAN ENTERPRISE ZONE: Old Man Rafferty's Fire Truck Program Phase VI , , , , Fire Truck Program Phase VI Administrative Charges LED - Street Lighting Project Website Design 150, , , , $ 7, , , , , NJEDA Boardwalk Streetscape Lighting Grant Writer - Rebuild by Design $ 924, , , , , , Safe Streets/Neighborhoods - P.A.L./CAMP 28, , , Youth Employment Training Program Multi Purpose Senior Center Senior Center Contribution - Private Source Department of Homeland Security: FEMA - Assistance to Firefighters Canine Unit Grant Fire Department Grant 49, , , , , , , , , , , , ,038.35

106 FEDERAL AND STATE GRANT FUND SCHEDULE OF APPROPRIATED RESERVES Schedule 15-A Sheet 4 of 4 Transferred from 2015 Budget Appropriations Balance Appropna!Jon Balance Grant January 1, 2015 Budget By 40A:4-87 Expended Reimbursed Cancelled December 31, 2015 NJDOL - National Emergency Grant $ 6, $ 6, Municipal Alliance Grant 1, , Madison Marquette Redeveloper - Special Police 3, , Madison Marquette Redeveloper - SDA Items $ 41, $ 41, Asbury Park BOE - School Resource Officers 283, , $ 28, Municipal Recycling Grant 15, , Private Contribution - Springwood Avenue Park 150, , Waterfront Redeveloper - Special Police 3, , , , Waterfront Redeveloper - Police Contribution 113, _1, , Totals $ 2,388, $ 3,051, $ 187, $ 1,448, $ 93, $ 109, $ 4,163, Ref. A A-3 A-3 17-A 17-A A-1,17-A A

107 Schedule 16-A CURRENT FUND SCHEDULE OF DEFERRED CHARGES Total 2010 Severance Special Emergencies Preparation of Hurricane Sandy Master Plan BALANCE, DECEMBER 31, 2014 Ref. A $ 369, $ 69, $ 300, INCREASED BY 2015 Authorization A-3 75, $ 75, DECREASED BY Raised in 2015 Budget BALANCE, DECEMBER 31, , , A-3 169, , A $ 275, $ - 300, , , $ 200, $ 75,000.00

108 Schedule 17-A FEDERAL AND STATE GRANT FUND SCHEDULE OF DUE FROM CURRENT FUND BALANCE. DECEMBER A $ 776, INCREASED BY Grants Receivable Cancelled lnterfund Liquidated with General Capital Fund Cash Received in Current Fund: Unappropriated Grants Federal and State Grants Receivable A-1, 18-A 1-A,21-A 1-A, 14-A 1-A, 18-A $ 136, , , ,390, ,898, DECREASED BY Appropriated Reserves Cancelled lnterfund Liquidated with Trust Other Fund Cash Disbursed - Reserve for Encumbrances Cash Disbursed - Appropriated Reserves A-1,15-A 1-A,25-A 1-A, 13-A 1-A,15-A 109, , , ,355, ,674, ,529, BALANCE. DECEMBER A $ 1, 145,354.46

109 FEDERAL AND ST A TE GRANT FUND SCHEDULE OF GRANTS RECEIVABLE Schedule 18-A Sheet 1of Balance Budget Balance December 31, Revenue Unappropriated December 31, Grant 2014 Realized Received Cancelled Reserve A~~Jied 2015 Federal: U.S. Department of Justice COPS Hiring Recovery Program $ 750, $ 311, $ 439, COPS Hiring Recovery Program , $ 200, , , COPS Hiring Recovery Program , , , Edward Byrne Memorial Justice Assistance 27, , , $ (0.30) 52, Youth Employment Training Program 63, , , Multi-Purpose Senior Center 31, , , (1,346.00) 31, FEMA: Assist to Firefighters 89, , , , Assist to Firefighters _, , Total Federal Grants 1,071, , , i ) 1,047, State: NJ Department of Human Services - Mental Health Grant: (1.00) , , (392.00) , , , Click it or Ticket (750.00) NJ Highway Traffic Safety Grant - You Drink, You Lose 5, , NJ Commerce Commission - Gateway Sign - Additional 10, , Hazardous Site Discharge Remediation -#P , , Hazardous Site Discharge Remediation-# P , , NJDOT: Transportation Center Improvements 18, (18,074.25) NJ Green Communities 3, , NJ Safe Street & Neighborhoods - P.A.L,/CAMP 29, , Recycling Tonnage Grant 31, $ 31, Drunk Driving Prevention Program , (39,448.00)

110 FEDERAL AND STATE GRANT FUND SCHEDULE OF GRANTS RECEIVABLE Schedule 18-A Sheet 2 of Balance Budget Balance December 31, Revenue Unappropriated December 31, Grant 2014 Realized Received Cancelled Reserve A~~lied 2015 Body Armor Replacement Fund: 2012 $ $ , , Drive Sober or Get Pulled Over: Other 4, $ (4,400.00) Labor Day $ 5, $ 4, (50.00) Holiday Crackdown 7, , , , Municipal Alliance - Drug and Alcohol Abuse 6, (6,107.76) Clean Communtties Program: , , NJEDA - Boardwalk Streetscape Grant 924, , NJ Department of Labor - National Emergency Grant 1, (1,464.77) Total State Grants 181, ,114, , (70,687.78) 3_1, ,020, Local/County Grants: Redeveloper's Contribution - Relocation Officer , (55,000.00) Waterfront Redevelopers Contribution 150, , Madison Marquestte - SDA Menu Items 41, , Private Source - Springwood Avenue Park 150, , Private Source - Boardwalk Streetscape Lighting 130, , County of Monmouth - Open Space , , County of Monmouth - Open Space Program Springwood Ave Phase 2 250, , County of Monmouth - Open Space Program Springwood Ave Phase 3 250, , Rebuild by Design - Grant Writer 11, , Asbury Park Board of Education; Foot Patrol , (9,718.08) School Resource Officers 283, , Camera Installation 299, , ~ Total Local/County Grants 400, ,565, , (64,718.08) 1,265, Total Grants $ 1,653, $ 3,239, $ 1,390, $ (136,752.16) $ 31, $ 3,334, Ref. A A-2,17-A 17-A A-1,17-A 14-A A Detail: Original Budget A-2 $ 3,051, Added by NJSA 40A:4-87 A-2 187, Above $ 3,239,274.32

111 Schedule 19-A Sheet 1 of 3 CURRENT FUND STATEMENT OF 2014 APPROPRIATION RESERVES Salaries and Wages: Operations - Within "CAPS": General Administration $ Mayor and Council Municipal Clerk Financial Administration Tax Assessment Administration Revenue Administration Code Enforcement Police Department Fire Department Streets and Roads Solid Waste Collection Social Services Parks and Recreation Municipal Court Public Defender Senior Center Uniform Construction Code - By Dedicated Revenues (N.J.A.C. 5: ) Balance December 31, 2014 Appropriation Reserve for Reserves Encumbrances , , , , , , , , , , , , , , $ Balance After Transfers , , , , , , , , , , , , , , $ Paid or Charged , , , , , , , , , , , $ Balance Lapsed , , , , , , , , , , , , , , Total Salaries and Wages Other Expenses: Operations - Within "CAPS": General Administration Mayor and Council 506, , , , , , , , , , , ,

112 Schedule 19-A Sheet 2 of 3 CURRENT FUND STATEMENT OF 2014 APPROPRIATION RESERVES Balance December 31, 2014 Appropriation Reserve for Reserves Encumbrances Balance After Transfers Paid or Charged Balance Lapsed Other Expenses (Continued): Operations - Within "CAPS" (Continued): Municipal Clerk Financial Administration Tax Assessment Administration Economic Development Revenue Administration Legal Services and Costs Zoning Board of Adjustment Code Enforcement Liability Insurance Worker Compension Insurance Unemployment Insurance Employee Group Insurance Payment for Health Insurance Opt Out Fire Department Police Department Uniform Construction Code - By Dedicated Revenues (N.J.A.C. 5: ) Streets and Road Maintenance Buidlings and Grounds Street Lighting Telephone Social Services $ 16, $ 13, , , , , , , , , , , , , , , , , , , , , $ 9, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , $ 4, , , , , , , , , , , , , , , , , , $ 16, , , , , , , , , , , , , , , , , , , ,514.51

113 Schedule 19-A Sheet 3 of 3 CURRENT FUND STATEMENT OF 2014 APPROPRIATION RESERVES Gasoline Fire Hydrant Rent Statutory Expenditures Contribution to: Social Security System (OAS.I.) Defined Contribution Retirement Plan Pension Adjustment Fund Administrative Expenses $ Balance December 31, 2014 Appropriation Reserves 42, , $ Reserve for Encumbrances 12, , $ Balance After Transfers 55, , , Paid or Charged $ 12, , $ Balance Lapsed 42, , Total Other Expenses 783, , ,254, , Grand Total $ 1,289, $ 471, $ 1,761, $====== 906, Detail of Paid or Charged: Cash Disbursed Accounts Payable Ref. 1-A 39-A A 20-A $ A-1 Above $ ~ -

114 CURRENT FUND SCHEDULE OF RESERVE FOR ENCUMBRANCES Schedule 20-A BALANCE, DECEMBER 31, 2014 Ref. A $ 477, INCREASED BY 2015 Budget Appropriations Charged A-3 $ 968, Appropriation Reserves Charged 19-A 5, DECREASED BY Transfer to Appropriation Reserves 19-A 471, Transfer to Accounts Payable 39-A 5, Cash Disbursed 1-A 5, , ,450, , BALANCE, DECEMBER 31, 2015 A $ 968,390.69

115 Schedule 21-A FEDERAL AND STATE GRANT FUND SCHEDULE OF DUE FROM GENERAL CAPITAL FUND BALANCE, DECEMBER 31, 2014 A $ 336, DECREASED BY Cash Received by Current Fund on behalf of Federal and State Grant Fund 17-A 336, BALANCE. DECEMBER 31, 2015 A $ =====

116 Schedule 22-A CURRENT FUND SCHEDULE OF PREPAID TAXES BALANCE. DECEMBER 31, 2014 INCREASED BY 2016 Prepaid Taxes Received DECREASED BY Applied to 2015 Taxes BALANCE. DECEMBER A 1-A 4-A A $ 265, , , , $ 255,584.33

117 Schedule 23-A CURRENT FUND SCHEDULE OF TAX OVERPAYMENTS Ref. BALANCE, DECEMBER 31, 2014 A $ 355, INCREASED BY Cash Receipts 1-A DECREASED BY Applied to 2015 Taxes 4-A 217, , , BALANCE, DECEMBER 31, 2015 A $ 330,

118 CURRENT FUND SCHEDULE OF RESERVE FOR MASTER PLAN UPDATE Schedule 24-A BALANCE. DECEMBER A $ INCREASED BY 2015 Appropriation Charged A-3 75, BALANCE, DECEMBER A $ 75, ========

119 Schedule 25-A FEDERAL AND STATE GRANT FUND SCHEDULE OF DUE TO TRUST OTHER FUND BALANCE, DECEMBER 31, 2014 DECREASED BY Disbursed by Current Fund On Behalf of Federal and State Grant Fund A 17-A $ 1, , BALANCE, DECEMBER A $=====

120 Schedule 26-A CURRENT FUND SCHEDULE OF PILOT ASSESSMENTS DUE TO COUNTY BALANCE. DECEMBER INCREASED BY Pilot Assessments Received - 5% County Portion DECREASED BY Cash Disbursements BALANCE, DECEMBER 31, 2015 A 1-A 1-A A $ 8, , , , $ 32, ========

121 Schedule 27-A CURRENT FUND SCHEDULE OF DUE TO GENERAL CAPITAL FUND BALANCE. DECEMBER A $ 307, DECREASED BY Cash Disbursed - Prior Year's lnterfund Cash Receipt - Current Year's Interest 1-A A-2,1-A $ 274, , , BALANCE, DECEMBER A $ ===2=5=,0=00= =00==

122 Schedule 28-A CURRENT FUND SCHEDULE OF PREPAID DEBT SERVICE COMPTRAAID BALANCE, DECEMBER 31 I 2014 A $ 636, INCREASED BY Increase in Prepaid Debt Service A-3 6, BALANCE, DECEMBER 31, 2015 A $ ==6=4=2=,9=00=.0=0=

123 Schedule 29-A CURRENT FUND SCHEDULE OF OTHER LIENS RECEIVABLE - NEW VERSAILLES BALANCE. DECEMBER A $ 174, DECREASED BY Cash Received A-2,1-A 174, BALANCE. DECEMBER A $======

124 Schedule 30-A CURRENT FUND SCHEDULE OF DUE FROM PARKING UTILITY OPERATING FUND BALANCE, DECEMBER 31, 2014 A $ 93, DECREASED BY Cash Received - lnterfund Liquidated A-1, 1-A 93, BALANCE, DECEMBER 31, 2015 A $=====

125 CURRENT FUND SCHEDULE OF SPECIAL EMERGENCY NOTES PAYABLE Schedule 31-A Emergency Description Date of Issue Balance Date of Interest December 31, Maturity Rate 2014 Increased Balance December 31, Decreased 2015 Hurricane Sandy 6/27/2014 Hurricane Sandy 6/28/2015 6/28/ % $ 300, /28/ % $ 275, $ 300, $ 275, $ 300, $ 275, Ref. A 1-A $ 300, $ 275, A A

126 FEDERAL AND STATE GRANT FUND SCHEDULE OF DUE TO GRANTOR Schedule 32-A BALANCE. DECEMBER AND 2014 A $ ======8,=0=96=.8=5=

127 Schedule 33-A CURRENT FUND SCHEDULE OF RESERVE FOR HURRICANE SANDY BALANCE. DECEMBER AND 2014 A $ ====1=6,=5=05=.5=6=

128 Schedule 34-A CURRENT FUND SCHEDULE OF DUE FROM SEWER UTILITY OPERATING FUND BALANCE. DECEMBER A $ 8, DECREASED BY Cash Receipt- lnterfund Liquidated A-1,1-A 8, BALANCE. DECEMBER 31, 2015 A $ ======

129 Schedule 35-A CURRENT FUND SCHEDULE OF PLEDGED PILOT ASSESSMENTS DUE TO TRUSTEE CRAB) BALANCE, DECEMBER 31 I 2014 A $ 1, INCREASED BY Cash Receipts 1-A 108, DECREASED BY Cash Disbursed BALANCE. DECEMBER 31 I A A 110, , $ ======5,=7=16=.6=5=

130 Schedule 36-A CURRENT FUND SCHEDULE OF PILOT ASSESSMENTS DUE FROM EMORY REAL TY, LLC BALANCE, DECEMBER 31, 2014 A $ 46, DECREASED BY Cash Receipt 1-A,8-A 46, BALANCE. DECEMBER 31, 2015 A $ ======

131 Schedule 37-A CURRENT FUND SCHEDULE OF DUE FROM ANIMAL CONTROL TRUST FUND Ref. BALANCE. DECEMBER 31, 2014 A $ 2, INCREASED BY Excess in Reserve for Animal Control Expenditures 16-B 6, DECREASED BY Cash Receipt A-1, 1-A 8, , BALANCE, DECEMBER 31, 2015 A $ 6,

132 Schedule 38-A CURRENT FUND SCHEDULE OF DUE FROM TRUST OTHER FUND BALANCE, DECEMBER A $ 346, INCREASED BY Abandoned Properties Cash Received in Error by Trust Other Fund Prior Year's Liabilites Cancelled 15-B 15-B $ 10, , , DECREASED BY Cash Received by Trust Other Fund in Error 15-B 361, , BALANCE. DECEMBER 31, 2015 A $ ===3=5=1 = 7=60=.3=4=

133 Schedule 39-A CURRENT FUND SCHEDULE OF ACCOUNTS PAYABLE BALANCE. DECEMBER 31 I 2014 A $ INCREASED BY Appropriation Reserves Charged 19-A,20-A 5, BALANCE. DECEMBER A $ ===5=,2=43=.4=2=

134 TRUST FUND SCHEDULES

135 Schedule 1-B TRUST FUND SCHEDULE OF CASH AND CASH EQUIVALENTS Animal Trust Ref. Control Other BALANCE. DECEMBER 31 I 2014 B $ 11, $ 6,665, INCREASED BY Dog License Fees 3-B $ 3, Due from CDBG 11-B 189, Various Reserves 7-B 3,151, State of New Jersey - Dog License Fees 4-B Due to State of New Jersey 14-B 60, Interest on Investments 9-B, 10-B 8, Due from Current Fund 15-B 10, Due from Federal and State Grant Fund 8-B 1, Off Duty Police Services 13-B 420, , ,843, , ,508, DECREASED BY Expenditures Under R.S. 4: B RCA Programs 9-B 229, Reserve for CDBG 10-B 134, Various Reserves 7-B 3,136, Reserve for Encumbrances 5-B, 12-B , Due to State of New Jersey 4-B,14-B , Off Duty Police Services 13-B 482, Due to Current Fund 15-B, 16-B 2, , , ,341, BALANCE, DECEMBER 31, 2015 B $ 12, $ 6,167,403.73

136 Schedule 2-B TRUST OTHER FUND SCHEDULE OF INVESTMENTS BALANCE. DECEMBER AND 2014 B $ 22,296.00

137 Schedule 3-B ANIMAL CONTROL TRUST FUND SCHEDULE OF RESERVE FOR ANIMAL CONTROL TRUST FUND EXPENDITURES BALANCE. DECEMBER B $ 8, INCREASED BY Dog License Fees - Municipal Portion Prior Year' Encumbrance Cancelled Late Fees and Miscellaneous 1-B 5-B 1-B $ 3, , DECREASED BY Expenditures Under R.S. 4: Excess Due to Current Fund 1-B 16-B , , , BALANCE, DECEMBER B $ 6, ======== $ 3, , $ 6, AUDITOR'S NOTE R.S. 4: "There shall be transferred from such special account to the general funds of the Municipality any amounts then in such account which is in excess of the total amount paid into such special account during the last two fiscal years next preceding."

138 Schedule 4-B ANIMAL CONTROL TRUST FUND SCHEDULE OF DUE TO STATE OF NEW JERSEY BALANCE. DECEMBER 31 I 2014 B $ INCREASED BY Cash Receipts DECREASED BY Cash Disbursed BALANCE. DECEMBER B 1-B B $ 7.80 =====

139 Schedule 5-B ANIMAL CONTROL TRUST FUND SCHEDULE OF RESERVE FOR ENCUMBRANCES Ref. BALANCE. DECEMBER B $ DECREASED BY Cash Disbursed 1-B $ Cancelled 3-B BALANCE, DECEMBER 31, 2015 B $

140 Schedule 6-B TRUST OTHER FUND SCHEDULE OF MISCELLANEOUS RESERVE BALANCE, DECEMBER 31 I 2015 AND 2014 B $ 9, =======

141 TRUST OTHER FUND STATEMENT OF VARIOUS RESERVES Schedule 7-B Balance Balance December 31, Disbursements/ December 31, 2014 Receigts Encumbrances 2015 Public Defender Fees $ 8, $ 3, $ $ 12, Animal Welfare Child Welfare 87, , , Bid Deposits City Property 12, , Unemployment Compensation Ins. 156, , , , Planning Board Escrow 346, , , , Tax Sale Premiums 2, 163, ,222, ,544, ,841, Outside Liens 49, ,375, ,270, , MD Sass Waterfront Redevelopment Storm Recovery Trust 40, , , Law Enforcement Trust - Federal Law Enforcement Trust 27, , , , POAA 42, , , , Shade Tree Trust , , , Recreation 21, , , , Wesley Lake Urban Renewal Phase I Operation Warm Beds Fire Prevention Life Hazard 6, , , , th of July 12, , Canine Vest Fund 1, , Senior Citizens , Canine Car Fund Affordable Housing 369, , , , AGTO, LLC Performance Bond 14, , NJ American Water Performance Bond 11, , NJ Natural Gas Performance Bond 11, , Beach Urban Renewal Inspection Beach Urban Renewal Escrow 20, , Metro Homes Escrow Boxing Facility Madison Asbury Retail Escrow 50, , , Madison Wesley Retail Escrow 31, , Special Events 1, , Rain Garden 2, , , , Fire House Bldg. Donation 3, , AP. Beautification Recreation - Tennis Charitable Donations Hurricane Sandy 31, , Community Initiative Street Openings 20, , Elections 2, , PAL/Cadet Program I-Star Waterfront Redevel. Escrow 31, , , , AEF Savoy Theater Escrow 12, , , , Michael's Development Escrow 6, , , Springwood Avenue Redevel. Escrow 18, , , Mattison Avenue Properties APTV Donations Police Community Relations 6, , National Night Out 5, , , Miscellaneous Escrows 11, , $ 3, 151, $ 3, 136, $ 3,602, Ref. B 1-B 1-B B

142 Schedule 8-B TRUST OTHER FUND SCHEDULE OF DUE FROM FEDERAL AND STA TE GRANT FUND BALANCE, DECEMBER DECREASED BY Cash Receipt BALANCE. DECEMBER B 1-B B $ 1, , $ =====

143 Schedule 9-B TRUST OTHER FUND SCHEDULE OF RESERVE FOR R.C.A. PROGRAMS Ref. Total Wall Sprinq Lake Millstone Howell BALANCE, DECEMBER 31, 2014 B $ 2,608, $ 261, $ 41, INCREASED BY Interest Income 1-B 7, DECREASED BY Cash Disbursements 1-B 229, Reserve for Encumbrances 12-B 22, ,616, , , BALANCE, DECEMBER 31, 2015 B $ 2,364, $ 262, $ 41, $ 142, $ 2,163, , , ,169, , , $ 142, $ 1,917,933.14

144 TRUST OTHER FUND SCHEDULE OF RESERVE FOR COMMUNITY DEVELOPMENT BLOCK GRANT Schedule 10-B Ref. BALANCE. DECEMBER 31, 2014 B $ 338, INCREASED BY Grant Awards 11-B $ 411, Interest Earnings 1-B , , DECREASED BY Cash Disbursed 1-B 134, Voluntary Grant Reduction 11-B 68, Grant Receivable Cancelled 11-B 28, , BALANCE, DECEMBER 31, 2015 B $ 518,663.98

145 Schedule 11-B TRUST OTHER FUND SCHEDULE OF GRANTS RECEIVABLE-CDBG Ref. BALANCE. DECEMBER B $ 591, INCREASED BY Grant Award - Original Allocation 10-B $ 386, Grant Award - West Chester Reallocation 10-B 25, , DECREASED BY Cash Receipt 1-B 189, Voluntary Grant Reduction 10-B 68, Cancellation 10-B 28, ,003, , BALANCE, DECEMBER 31, 2015 B $ 715,895.33

146 Schedule 12-B TRUST OTHER FUND SCHEDULE OF RESERVE FOR ENCUMBRANCES Ref. BALANCE. DECEMBER 31 I 2014 B $ 292, INCREASED BY Reserves for RCA Programs Charged 9-B DECREASED BY Cash Disbursed 1-B $ 287, Encumbrances Cancelled 15-B 4, , , , BALANCE, DECEMBER 31, 2015 B $ 22,740.00

147 Schedule 13-B TRUST OTHER FUND SCHEDULE OF RESERVE FOR OFF DUTY POLICE SERVICES Ref. BALANCE. DECEMBER B $ INCREASED BY Cash Receipt 1-B DECREASED BY Cash Disbursed 1-B BALANCE, DECEMBER 31, 2015 B $ 92, , , , ,478.88

148 Schedule 14-B TRUST OTHER FUND SCHEDULE OF DUE TO ST A TE OF NEW JERSEY Ref. Total Marriage Licenses DCA Training Fees BALANCE. DECEMBER B $ 4, $ 1, INCREASED BY Cash Receipts 1-B 60, , , , DECREASED BY Cash Disbursed 1-B 60, , $ 3, , , ~ BALANCE. DECEMBER B $ 4, $ 1, $ 3,377.00

149 Schedule 15-B TRUST OTHER FUND SCHEDULE OF DUE TO CURRENT FUND BALANCE. DECEMBER 31, 2014 B $ 346, INCREASED BY Abandoned Properties Cash Received in Error by Trust Other Fund Prior Year's Encumbrances Cancelled 1-B,38-A $ 12-B,38-A 10, , , DECREASED BY Cash Disbursed by Trust Other Fund in Error 1-B,38-A 361, , BALANCE. DECEMBER 31, 2015 B $ 351,760.34

150 Schedule 16-B ANIMAL CONTROL TRUST FUND SCHEDULE OF DUE TO CURRENT FUND YEAR ENDED DECEMBER 31 I 2015 BALANCE, DECEMBER 31 I 2014 B $ 2, INCREASED BY Excess in Reserve for Animal Control Expenditures 3-B,37-A 6, INCREASED BY Cash Disbursed to Current Fund 1-B 8, , BALANCE, DECEMBER 31, 2015 B $ 6, =======

151 GENERAL CAPITAL FUND SCHEDULES

152 Schedule 1-C GENERAL CAPITAL FUND SCHEDULE OF CASH AND CASH EQUIVALENTS AND INVESTMENTS BALANCE. DECEMBER c $ 4,283, INCREASED BY Cash Receipts: Bond Anticipation Notes Capital Improvement Fund Due from Current Fund Reserve for Regional Contribution Agreements Interest on Investments 13-C $ 11-C 10-C 6-C 10-C 4,600, , , , ,032, ,316, DECREASED BY Cash Disbursed: Reserve for Encumbrances Capital Lease Expenditures Bond Anticipation Notes Due to Federal and State Grant Fund Improvement Authorizations 22-C $ 14-C 13-C 19-C 9-C 628, , ,950, , , ,435, BALANCE. DECEMBER c $ 3,881, Detail: Cash and Cash Equivalents Investment in Special Emergency Notes c c $ 3,606, , $ 3,881,320.78

153 GENERAL CAPITAL FUND SCHEDULE OF CASH, CASH EQUIVALENTS AND INVESTMENTS Schedule 2-C Sheet 1 of 2 Balance December 31, 2014 Receipts Bonds Anticipation Notes Miscellaneous Improvement Authorizations Disbursements Bond Anticipation Notes Miscellaneous From Transfers Tu Balance December 31, 2015 Fund Balance Due to/(from) Current Fund Due to Federal and State Grant Fund Capital Improvement Fund Due from Monmouth County Improvement Authority Due from NPP/CDBG Program - Ordinance 2904 Due from NJ DOT - Ordinance Reserve for Payment of Bonds Reserve for Payment of Notes Reserve for Insurance Proceeds Reserve for Regional Contribution Agreements Reserve for Contractor Contribution Contracts Payable Reserve for Encumbrances $ 40, (307,297.60) 336, , (346, ) (147,490.54) , ,278, , , , , $ 282, , $ 336, , , $ 150, , , $ 33, , , $ 40, (25,000.00) 45, (350,494.59) (114,041.32) (903,017.00) , ,278, , , ,804, , Ordinance ~ Improvement Authorizations 2410 Regional Conservation Agreement Housing Rehabilitation -Middletown 62, , Upgrade and/or closure of Underground Storage Tan ks 2, , Streetscape Improvement Project 26, , West Side Rec. Development /2835 Various Capital Improvements Road Improvement Program 2878 Revaluation of Real Property 47, , , , , ,561.80

154 GENERAL CAPITAL FUND SCHEDULE OF CASH, CASH EQUIVALENTS AND INVESTMENTS Schedule 2-Q Sheet2 of 2 Receiets Balance Bonds Disbursements Balance December 31, Anticipation Improvement Bond Anticipation Transfers December 31, 2014 Notes Miscellaneous Authorizations Notes Miscellaneous From Tu 2015 Ordinance Improvement _Q! _ Authorizations Road Improvement Program $ 33, $ 33, Construction of a Senior Center 2967 Activities Related to Waterfront Redevelopment (3,037.50) $ (3,037.50) 3036 Reconstruction of Foot Bridge at Sunset Lake 449, $ 450, $ 46, $ 450, , , Reconstruction of the Boardwalk 583, ,750, , ,500, , $ 750, , Installation of a Camera System 194, , Acquisition of Various Equipment and Vehicles (490,222.16) 1,400, , , , Various Roadway and Sewer Improvements ,053, Bracketed Amount Denotes Deficit. $ 4,283, $ 4,600, $ 432, $ $ 3,950, $ $ 3,236, $ 3,236, $ 3 881, Ref. c 13-C C-1/10-C/11-C 9-C 13-C 10-C/14-C c Detail: Cash and Cash Equivalents c 3,983, $ 3,606, Investment in Special Emergency Notes c $ , $ 4,283, $ 3,881,320.78

155 GENERAL CAPITAL FUND SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION -FUNDED Schedule 3-C BALANCE. DECEMBER c $ 10,334, DECREASED BY Serial Bond Maturities 7-C $ 723, EDA Loan Maturity 5-C 37, Green Acres Loan Maturity 8-C 76, , Ref. BALANCE, DECEMBER 31, 2015 c $ 9,497,771.79

156 GENERAL CAPITAL FUND SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED Schedule 4-C Anall'.sis of Balance December 31, 2015 Financed by Unexpended Balance Reserve for Balance Bond Unfunded Ordinance December 31, 2015 Payment of December 31, Anticipation Improvement Number Description 2014 Authorizations Notes 2015 Notes Exoenditures Authorizations 2620 Demolition of Unsafe Buildings and Structures $ 86, $ 86, $ 86, Upgrade and/or closure of Underground Storage Tanks 224, , , Streetscape Improvement Project West Side Rec. Development 19, , , Activities Relating to Waterfront Redevelopment 3, , $ 3, Reconstruction of Foot Bridge at Sunset Lake 450, , $ 450, Reconstruction of the Boardwalk 3,500, $ 750, ,750, ,750, Acquisition of Various Equipment and Vehicles 1,428, ,428, ,400, , Various Roadway and Sewer Improvements $ 2,850, ,850, ,850, $ 5,712, $ 2,850, $ 750, $ 7,812, $ 4,600, $ 3, $ 3,208, Ref c 9-C,23-C 20-C c 13-C 2-C Below Detail: Ref. Improvement Authorizations - Unfunded 9-C $ 3,879, Less: Unexpended Note Proceeds Ordinance # C $ 386, Ordinance # C 113, Ordinance # C 170, , Above $ 3,208,968.34

157 Schedule 5-C GENERAL CAPITAL FUND SCHEDULE OF NEW JERSEY EDA LOAN PAYABLE BALANCE, DECEMBER 31 I 2014 c DECREASED BY Current Fund Budget Appropriation 3-C BALANCE. DECEMBER 31 I 2015 c $ 37, , $=====

158 Schedule 6-C GENERAL CAPITAL FUND SCHEDULE OF RESERVE FOR REGIONAL CONTRIBUTION AGREEMENTS Ref. Total Middletown Freehold BALANCE, DECEMBER 31 I 2014 c $ 44, $ 23, $ 21, INCREASED BY Interest on Investments 1-C BALANCE, DECEMBER 31 I 2015 c $ 45, $ 23, $ 21,337.37

159 GENERAL CAPITAL FUND SCHEDULE OF SERIAL BONDS YEAR ENDED DECEMBER Schedule 7-C Sheet 1of2 Maturities of Bonds Amount of Outstanding Balance Balance Date of Original December Interest December 31, December 31, Purpose Issue Issue Date Amount -8!L 2014 Decrease 2015 General Improvements 4/1/2009 $ 6, 145, /1/16 $ 280, % $ 4,915, $ 275, $ 4,640, /1/17 295, % 4/1/18 305, % 4/1/19 315, % 4/1/20 325, % 4/1/21 340, % 4/1/22 350, % 4/1/23 365, % 4/1/24 380, % 4/1/25 395, % 4/1/26 415, % 4/1/27 430, % 4/1/28 445, % MCIA Refunding Bonds 9/30/ , , , MCIA Serial Bonds 1/11/2011 2,905, /15/16 105, % 2,590, , ,485, (Springwood Avenue) 1/15/17 110, % 1/15/18 115, % 1/15/19 120, % 1/15/20 130, % 1/15/21 135, % 1/15/22 140, % 1/15/23 150, % 1/15/24 155, % 1/15/25 165, % 1/15/26 175, % 1/15/27 180, % 1/15/28 190, % 1/15/29 195, % 1/15/30 210, % 1/15/31 210, %

160 GENERAL CAPITAL FUND SCHEDULE OF SERIAL BONDS Schedule 7-C Sheet 2 of 2 Maturities of Bonds Amount of Outstanding Balance Balance Date of Original December31, 2015 Interest December 31, December 31, Purpose Issue Issue Date Amount _.B.!L 2014 Decrease 2015 MCIA Serial Bonds 12/19/2012 $ 341, /1/16 $ 14, % $ 317, $ 14, $ 302, /1/17 14, % 12/1/18 14, % 12/1/19 14, % 12/1/20 14, % 12/1/21 16, % 12/1/22 16, % 12/1/23 16, % 12/1/24 18, % 12/1/25 18, % 12/1/26 18, % 12/1/27 18, % 12/1/28 20, % 12/1/29 20, % 12/1/30 20, % 12/1/31 20, % 12/1/32 22, % 2013 MCIA Refunding Bonds 1/16/2014 1,560, /1/16 182, % 1,535, , ,351, /1/17 182, % 4/1/18 182, % 4/1/19 195, % 4/1/20 199, % 4/1/21 204, % 4/1/22 204, % $ 9,502, $ 723, $ 8 779, Ref. c A-3/3-C c

161 GENERAL CAPITAL FUND SCHEDULE OF GREEN ACRES LOANS PAYABLE Schedule 8-C BALANCE, DECEMBER DECREASED BY Loan Repayments BALANCE, DECEMBER Boardwalk Boardwalk Supplemental Original Loan Loan Ref. c $ 387, $ 153, C 42, , c $ 345, $ 139, West Side Rec. Original Loan Totals $ 254, $ 795, , , $ 233, $ 718,686.79

162 GENERAL CAPITAL FUND Schedule 9-C SCHEDULE OF IMPROVEMENT AUTHORIZATIONS Balance Balance Ordinance Ordinance December31, Paid or December 31, 2015 Description Date Amount Funded Unfunded Authorization Charged Cancelled Funded Unfunded 2410 Regional Conservation Agreement- Housing Rehab. - Middletown 11/03/94 $ 3,510, $ 62, $ 62, Demolition of Unsafe Structures 11/06/02 130, $ 86, $ 86, Upgrade and/or Closure of Underground Storage Tanks 05/21/03 236, , , , , Streetscape Improvement Project 05/18/05 250, , , Various Capital Improvements ,875, , , West Side Rec. Development 03/01/06 800, , , Road Improvement Program 07/03/07 875, , , Revaluation of Real Property 07/02/08 500, , , Road Improvement Program 05/20/09 1,500, , $ 33, Reconstr. of Foot Bridge at Sunset Lake 01/16/13 450, , $ 63, , Reconstruction of Boardwalk 01/16/13 4,500, , , , Installation of a Camera System 01/08/14 353, , , Acquisition of Various Equipment and Vehicles 10/15/14 1,500, , , , Various Roadway and Sewer Improvements 10/28/15 3,903, $ 3,903, , , ,850, $ 505, $ 2,301, $ 3,903, $ 1,916, $ 33, $ 880, $ 3,879, Ref. c c Below Below 12-C c c Cash Disbursed 1-C $ 516, Contracts Payable 21-C 916, Reserve for Encumbrances 22-C ~ Above $ 1,916, Detail of 2015 Authorization: Capital Improvement Fund 11-C $ 150, NJDOT Grant Receivable 12-C 903, Deferred Charges to Future Taxation, Unfunded 4-C 2,850, Above $ 3,903,017.00

163 Schedule 10-C GENERAL CAPITAL FUND SCHEDULE OF DUE FROM CURRENT FUND Ref. BALANCE. DECEMBER 31 I 2014 c DECREASED BY Interest on Investments Due to Current Fund 1-C $ 7, Cash Received 1-C 274, BALANCE, DECEMBER 31, 2015 c $ 307, , $ 25,000.00

164 Schedule 11-C GENERAL CAPITAL FUND SCHEDULE OF CAPITAL IMPROVEMENT FUND BALANCE DECEMBER 31 I 2014 c INCREASED BY 2015 Current Fund Budget Appropriation 1-C/A-3 $ 45, , , DECREASED BY Appropriated to Finance Improvement Authorization 9-C 150, BALANCE DECEMBER 31, 2015 c $ 45,279.30

165 Schedule 12-C GENERAL CAPITAL FUND SCHEDULE OF INTERGOVERNMENTAL RECEIVABLES NPP/ CDBG Ref. Total (Ordinance 2904) NJ Department of Transportation (Ordinance ) BALANCE. DECEMBER c $ 147, $ 147, INCREASED BY Grant Awarded 9-C 903, ,050, , $ 903, , DECREASED BY Cancelled 9-C 33, , BALANCE, DECEMBER c $ 1,017, $ 114, $ 903,017.00

166 Schedule 13-C GENERAL CAPITAL FUND STATEMENT OF BOND ANTICIPATION NOTES PAYABLE Ordinance Number Description Date of Balance Original Date of Date of Interest December 31, Issue Issue Maturity Rate 2014 Balance December 31, Increased Decreased Reconstruction of Footbridge at Sunset Lake 3039 Boardwalk Reconstruction 3084 Acquistion of Various Equipment and Vehicles 06/20/13 06/19/14 06/19/ % $ 450, /19/15 06/17/ % 06/20/13 06/19/14 06/19/ % 3,500, /19/15 06/17/ % 06/19/15 06/19/15 06/17/ % $ 450, $ 450, $ 450, ,500, ,750, ,750, ,400, ,400, Ref. $ 3,500, c $ 4,600, $ 3,950, $ 4,600, C,23-C Below, 1-C C,4-C Detail of Decreased: Note Proceeds Reserve for Payment of Notes 13-C 20-C Above $ 3,200, , $ 3,950,000.00

167 GENERAL CAPITAL FUND SCHEDULE OF DUE FROM MONMOUTH COUNTY IMPROVEMENT AUTHORITY Schedule 14-C BALANCE, DECEMBER 31, 2014 c $ 346, INCREASED BY Capital Lease Funded Expenditures 1-C 3, BALANCE, DECEMBER 31, 2015 c $ 350,494.59

168 Schedule 15-C GENERAL CAPITAL FUND SCHEDULE OF RESERVE FOR CONTRACTOR CONTRIBUTION BALANCE, DECEMBER 31, 2015 AND 2014 C $ 20,400.00

169 Schedule 16-C GENERAL CAPITAL FUND SCHEDULE OF CAPITAL LEASE OBLIGATIONS PAYABLE MONMOUTH COUNTY IMPROVEMENT AUTHORITY YEAR ENDED DECEMBER 31 I 2015 BALANCE, DECEMBER 31, 2014 c $ 1, 176, DECREASED BY 2015 Current Fund Budget Appropriation 16-C 598, BALANCE, DECEMBER c $ ==5=7=8=,2=00= =00=

170 Schedule 17-C GENERAL CAPITAL FUND SCHEDULE OF RESERVE FOR PAYMENT OF BONDS BALANCE. DECEMBER 31, 2015 AND 2014 C $ =====

171 Schedule 18-C GENERAL CAPITAL FUND SCHEDULE OF RESERVE FOR INSURANCE PROCEEDS BALANCE. DECEMBER 31 I 2015 AND 2014 c $ 1,278,

172 Schedule 19-C GENERAL CAPITAL FUND SCHEDULE OF DUE TO FEDERAL AND STATE GRANT FUND BALANCE. DECEMBER c $ 336, DECREASED BY Cash Disbursed - lnterfund Liquidated 1-C BALANCE. DECEMBER c 336, $=====

173 Schedule 20-C GENERAL CAPITAL FUND SCHEDULE OF RESERVE FOR PAYMENT OF NOTES BALANCE. DECEMBER 31, 2014 c $ 758, DECREASED BY Utilized to Pay Down Bond Anticipation Notes 4-C, 13-C 750, BALANCE. DECEMBER c $ 8, =====

174 Schedule 21 - C GENERAL CAPITAL FUND SCHEDULE OF CONTRACTS PAYABLE BALANCE, DECEMBER 31 I 2014 c INCREASED BY Improvement Authorizations Charged 9-C BALANCE. DECEMBER 31, 2015 c $ 887, , $ 1,804,097.03

175 Schedule 22 -C GENERAL CAPITAL FUND SCHEDULE OF RESERVE FOR ENCUMBRANCES BALANCE. DECEMBER Ref. c $ 628, INCREASED BY Improvement Authorizations Charged 9-C DECREASED BY Disbursed 1-C BALANCE, DECEMBER 31, 2015 c 483, ,111, , $ 483,

176 Schedule 23-C GENERAL CAPITAL FUND SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED Ordinance Number Balance December 31, 2015 Description 2014 Authorizations Demolition of Unsafe Buildings and Structures $ 86, Upgrade and/or closure of Underground Storage Tanks 224, Streetscape Improvement Project West Side Rec. Development 19, Reconstruction of the Boardwalk 3, Bond Balance Anticipation December 31, Notes Issued 2015 $ 86, , , , Acquisition of Various Equipment and Vehicles 1,428, Various Roadway and Sewer Improvements $ 2,850, $ 1,762, $ 2,850, Ref. c 4-C $ 1,400, , ,850, $ 1,400, $ 3,212, C c

177 SEWER UTILITY FUND SCHEDULES

178 SEWER UTILITY FUND SCHEDULE OF CASH AND CASH EQUIVALENTS FOR THE Schedule 1-D Ref. Operating Capital BALANCE. DECEMBER D $ 410, INCREASED BY Consumer Accounts Receivable 4-D 4,315, Interest and Miscellaneous Income D-2,19-D 40, Developer's Contribution - Debt Service and Admin. Fees D-2 690, Sewer Connection Fees D-2 6, Sewer Liens 5-D 1, Due to Asbury Partners, LLC 8-D 54, Sewer Overpayments 10-D 13, Proceeds from Sale of Bond Anticipation Notes 20-D 5,123, ,534, $ 1,279, , ,250, ,252, ,532, DECREASED BY Budget Appropriations D-3 4,480, Appropriation Reserves 7-D 149, Due to Asbury Partners, LLC 8-D 45, Accrued Interest on Bonds and Notes 17-D 511, Improvement Authorizations 11-D Due to Current Fund 18-D 8, Bond Anticipation Notes Repaid 20-D Due to Sewer Utility Operating Fund 19-D Reserve for Encumbrances 21-D , 196, , ,250, , ,277, BALANCE, DECEMBER 31, 2015 D $ 338, $ 1,254,807.59

179 SEWER UTILITY CAPITAL FUND SCHEDULE OF CASH AND CASH EQUIVALENTS Schedule 2-D Balance December 31, Receipts Improvement 2014 Other Authorizations Disbursements Balance Transfers December 31, From To 2015 Fund Balance $ Reserve for Encumbrances Contracts Payable Due to Sewer Utility Operating Fund 8, $ 2, $ 2, $ 8, $ 42, , , , Ordinance _Q!L Improvement Authorizations 2722/2842 Odor Control Improvements 2790 Improvements to the Sanitary Sewer System 2903 Preliminary Planning Expenses - Sanitary and Storm Sewer Improvements - Springwood Ave. and Central Business District 2910 Sanitary and Storm Sewer Improvements - Springwood Ave. and Central Business District 3038 Improvements to the Sanitary Sewer System (259.90) 54, (4,255.78) 14, ,205, ,250, , ,250, (259.90) 54, (4,255.78) 14, $ 856, ~ $ 1,279, $ 1,252, $ 24, $ 1,252, $ 856, $ 856, $ 1,254, Ref. D 19-D,20-D 11-D 11-D, 19-D, 20-D D ( ) Bracketed Amount Denotes Deficit.

180 SEWER UTILITY CAPITAL FUND SCHEDULE OF FIXED CAPITAL FOR THE Schedule 3-D BALANCE. DECEMBER INCREASED BY Transferred from Fixed Capital Authorized and Uncompleted BALANCE. DECEMBER D $ 18,241, D 12,992, D $ 31,234,152.85

181 Schedule 4-D SEWER UTILITY OPERA TING FUND SCHEDULE OF CONSUMER ACCOUNTS RECEIVABLE BALANCE, DECEMBER 31, 2014 INCREASED BY Sewer Rents Levied D 4-D $ 1, 159, , 179, DECREASED BY Cash Receipts 1-D Prior Year's Overpayments Applied 10-D Transferred to Sewer Liens 5-D $ 4,315, , , ,339, ,326, BALANCE, DECEMBER 31, 2015 D $ 12,558.64

182 Schedule 5-D SEWER UTILITY OPERA TING FUND SCHEDULE OF SEWER LIENS RECEIVABLE BALANCE. DECEMBER D $ 11, INCREASED BY Transferred from Sewer Accounts Receivable DECREASED BY Collections BALANCE. DECEMBER D 1-D D 4, , , $ 14,016.20

183 Schedule 6-D SEWER UTILITY CAPITAL FUND SCHEDULE OF RESERVE FOR AMORTIZATION BALANCE. DECEMBER D $ 12,868, INCREASED BY Serial Bond Maturities Paid 13-D 1,346, BALANCE. DECEMBER D $ 14,214,600.84

184 Schedule 7-D SEWER UTILITY OPERA TING FUND SCHEDULE OF 2014 APPROPRIATION RESERVES YEAR ENDED DECEMBER 31, 2014 Balance December 31, 2014 Appropriation Reserve for Reserves Encumbrances Balance After Transfers Paid or Charged Balance Lapsed Operating: Salaries and Wages Other Expenses NJEIT Administrative Fee $ 37, $ 37, , $ 125, , , , $ , $ 36, , , Statutory Expenditures: Social Security 3, , $ 190, $ 125, $ 315, $ 149, Ref. D 21-D 1-D 3, $ 166, D-1

185 Schedule 8-D SEWER UTILITY OPERATING FUND SCHEDULE OF DUE TO ASBURY PARTNERS, LLC BALANCE. DECEMBER D $ 9, INCREASED BY Sewer Assessments Interest on Investments 1-D $ 54, , DECREASED BY Cash Disbursed 1-D 64, , BALANCE. DECEMBER D $ 19,331.32

186 Schedule 9-D SEWER UTILITY OPERATING FUND SCHEDULE OF DEFERRED CHARGES BALANCE. DECEMBER D $ 66, INCREASED BY 2015 Deficit in Operations D-1 DECREASED BY 2015 Budget Appropriation D-3 54, , , BALANCE. DECEMBER D $ 54,064.09

187 Schedule 10-D SEWER UTILITY OPERA TING FUND SCHEDULE OF SEWER OVERPAYMENTS Ref. BALANCE. DECEMBER D $ 7, INCREASED BY Cash Receipts 1-D DECREASED BY Applied to Consumer Accounts Receivable 4-D 13, , , BALANCE, DECEMBER 31, 2015 D $ 13,826.84

188 SEWER UTILITY CAPITAL FUND SCHEDULE OF IMPROVEMENT AUTHORIZATIONS Schedule 11-D Ordinance Number 2790 Balance Ordinance December 31, 2014 Description Date Amount Funded Unfunded Improvements to the Sanitary Sewer System 2006 $ 2,200, $ 54, Paid Balance or December 31, 2015 Charged Funded Unfunded $ 54, Sanitary and Storm Sewer Improvements - Springwood Ave. and Central Business District ,800, , $ 122, Improvement to the Sewer Plant 01/24/13 3,300, ,255, $ $ 69, $ 3,377, $ Paid or Charqed Detail: Ref. D D Cash Disbursed 2-D $ Contracts Payable 16-D Reserve for Encumbrances 21-D Above $ 14, $ 1,220, , ,37 4, , $ 69, $ 3,594, Below D D 24, , ~ ,498.75

189 SEWER UTILITY CAPITAL FUND SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED Schedule 12-D Ordinance Number Balance December 31, Transferred to Description 2014 Fixed Ca12ital Improvements to the Sanitary Sewer System $ 54, Preliminary Planning Expenses- Sanitary and Storm Sewer Improvements- Springwood Ave. and Central Business District 500, $ 500, Sanitary and Storm Sewer Improvements- Springwood Ave. and Central Business District 13,727, ,492, Improvement to the Sewer Plant 3,300, Balance December 31, 2015 $ 54, ,235, ,300, $ 17,582, $ 12,992, Ref. D 3-D $ 4,589, D

190 Schedule 13-D Sheet 1of4 SEWER UTILITY CAPITAL FUND SCHEDULE OF SERIAL BONDS Maturities of Bonds Amount of Outstanding Date of Original December Purpose Issue Issue Date Amount Interest _EfilL Balance December 31, 2014 Disbursed Balance December 31, 2015 NJEITTrust Bonds 11/9/2006 $ 605, /01/16 $ 30, /01/17 30, /01/ , /01/21 35, /01/22 40, /01/23 40, /01/24 40, /01/ , % 4.00% 4.00% 4.125% 4.125% 4.250% 5.000% 4.250% 440, , , NJEIT Fund Bonds 11/9/2006 1,629, /01/16 16, /01/16 70, /01/17 14, /01/17 69, /01/18 13, /01/18 77, /01/19 12, /01/19 76, /01/20 11, /01/20 75, /01/21 9, /01/21 73, /01/22 8, /01/22 81, /01/23 6, /01/23 80, /01/24 5, /01/24 78, /01/25 3, /01/25 85, /01/26 1, /01/26 84, % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1,047, , ,300.08

191 Schedule 13-D Sheet 2 of 4 SEWER UTILITY CAPITAL FUND SCHEDULE OF SERIAL BONDS Purpose Date of Issue Amount of Original Issue Maturities of Bonds Outstanding December31, 2015 Date Amount Balance Interest December 31, _B JL 2014 Disbursed Balance December 31, 2015 NJEIT Trust Bonds 11/8/2007 $ 2,160, /01/16 $ 100, /01/17 105, /01/18 110, /01/19 115, /01/20 120, /01/21 125, /01/22 130, /01/23 140, /01/24 145, /01/25 150, /01/26 160, /01/27 165, % $ 1,660, % 5.00% 4.00% 4.00% 5.00% 5.00% 4.25% 4.50% 4.50% 4.50% 4.25% $ 95, $ 1,565, NJEIT Fund Bonds 11/8/2007 6,139, /01/16 65, /01/16 249, /01/17 61, /01/17 254, /01/18 56, /01/18 258, /01/19 51, /01/19 262, /01/20 46, /01/20 267, /01/21 42, /01/21 272, /01/22 36, /01/22 275, /01/23 30, /01/23 288, /01/24 25, /01/24 292, /01/25 19, /01/25 295, /01/26 13, /01/26 307, /01/27 6, /01/27 310, % 4,104, % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 314, ,789,427.45

192 Schedule 13-D Sheet 3 of 4 SEWER UTILITY CAPITAL FUND SCHEDULE OF SERIAL BONDS Maturities of Bonds Amount of Outstanding Balance Balance Date of Original December Interest December 31, December 31, Purpose Issue Issue Date Amount ---.fuilil_ 2014 Disbursed 2015 Sewer Utility Bonds 4/1/2009 $ 260, /01/16 $ 15, % $ 210, $ 10, $ 200, /01/ , % 04/01/ , % 04/01/ , % 04/1/28 20, % 2010A New Jersey Infrastructure 3/10/2010 3,990, /01/16 165, % 2,835, , ,675, Trust Loan 08/01/17 175, % 08/01/18 185, % 08/01/19 195, % 08/01/20 200, % 08/01/21 210, % 08/01/22 220, % 08/01/23 225, % 08/01/24 235, % 08/01/25 245, % 08/01/26 255, % 08/01/27 265, % 08/01/28 100, % 2010A New Jersey Infrastructure 3/10/ ,792, /01/16 199, % 7,421, , ,821, Fund loan 09/01/16 399, % 03/01/17 199, % 09/01/17 399, % 03/01/18 199, % 09/01/18 399, % 03/01/19 199, % 09/01/19 399, % 03/01/20 199, % 09/01/20 399, % 03/01/21 199, % 09/01/21 399, % 03/01/22 199, % 09/01/22 399, % 03/01/23 199, % 09/01/23 399, % 03/01/24 199, % 09/01/24 399, % 03/01/25 199, % 09/01/25 399, % 03/01/26 199, % 09/01/26 399, % 03/01/27 199, % 09/01/27 26, %

193 Schedule 13-D.heel 4 of 4 SEWER UTILITY CAPITAL FUND SCHEDULE OF SERIAL BONDS Maturities of Bonds Amount of Outstanding Balance Balance Date of Original December Interest December 31, December 31, Purpose Issue Issue Date Amount...BillL 2014 Disbursed MClA Revenue Bonds 12/19/2012 $ 483, /01/16 $ 20, % $ 447, $ 20, $ 427, /01/17 20, % 12/01/18 20, % 12/01/19 20, % 12/01/20 20, % 12/01/21 23, % 12/01/22 23, % 12/01/23 23, % 12/01/24 26, % 12/01/25 26, % 12/01/26 26, % 12/01/27 26, % 12/01/28 29, % 12/01/29 29, % 12/01/30 29, % 12/01/31 29, % 12/01/32 32, % 2013 MCIA Refunding Bonds 2/15/ , /01/16 32, % 265, , , /01/17 32, % 04/01/18 32, % 04/01/19 34, % 04/01/20 35, % 04/01/21 36, % 04/01/22 36, % 18,430, $ 1,346, $ 17,084, Ref. D D-3/6-D D

194 Schedule 14-D SEWER UTILITY CAPITAL FUND SCHEDULE OF MCIA CAPITAL LEASE REFUNDING OBLIGATIONS PAYABLE Purpose Maturities of Capital Lease Refunding Amount of Obligations Outstanding Balance Date of Original December 31, 2015 Interest December 31, Issue Issue Date Amount _BE!L 2014 Decreased Balance December 31, 2015 Series 2014 A Refunding Lease Obligations Series 2014 A Refunding Lease Obligations 9/10/2014 $ 2,415, /15/2016 $ 370, % $ 2,345, $ 12/15/ , % 12/15/ , % 12/15/ , % 12/15/ , % 9/10/2014 6,990, /15/2016 1,305, % 6,870, /15/2017 1,320, % 12/15/2018 1,335, % 12/15/2019 1,360, % 12/15/2020 1,390, % $ 9,215, $ 360, $ 1,985, , ,710, , $ 8,695, Ref. D D-3 D

195 Schedule 15-D SEWER UTILITY CAPITAL FUND SCHEDULE OF MCIA CAPITAL LEASE OBLIGATIONS PAYABLE Purpose Amount of Balance Date of Original December 31, Issue Issue 2014 Decreased Balance December 31, 2015 Series 2005 B Lease Obligations 10/6/2005 $ 13,750, $ 1,090, $ 1,090, $ 1,090, $ 1,090, $ $ Ref. D D-3 D

196 Schedule 16-D SEWER UTILITY CAPITAL FUND SCHEDULE OF CONTRACTS PAYABLE BALANCE, DECEMBER D $ INCREASED BY Contract Awarded 11-D 813, BALANCE. DECEMBER 31, 2015 D $ ===8=1=3=,8=23= =00=

197 Schedule 17-D SEWER UTILITY OPERATING FUND SCHEDULE OF ACCRUED INTEREST ON BONDS AND NOTES YEAR ENDED DECEMBER BALANCE, DECEMBER 31, 2014 D $ 134, INCREASED BY 2015 Budget Appropriations: Interest on Bonds D-3 $ 219, Interest on Notes D-3 14, MCIA Lease Interest D-3 246, , , Ref. DECREASED BY Cash Disbursed 1-D 511, BALANCE, DECEMBER 31, 2015 D, Below $ 103, ANALYSIS OF ACCRUAL Serial Bonds Amount Outstanding Date Accrual Interest December 31, of Issue Period Rate 2015 Accrual NJEIT Bonds 11/9/ Months Var. $ 1,367, $ 7, NJEIT Bonds 11/8/ Months Var. 5,354, , Serial Bonds /1/ Months Var. 200, , NJEIT Bonds 3/10/ Months Var. 9,496, , MCIA- Serial Bonds /19/ Month Var. 427, , Refunding Serial Bonds 2/15/ Months Var. 238, , MCIA - Capital Lease Refunding /15/2014 O Days Var. 1,985, MCIA - Capital Lease Refunding /15/2014 O Days Var. 6,710, Bond Anticigation Notes $ 25, 779, $ 91, Ordinance #3038 6/19/ Days 1% $ 1,250, , $ 97, Add: Excess to be utilized in subsequent years budget 5, $ ====10=3.:,0=01;,;,;.0;;;;3=

198 Schedule 18-D SEWER UTILITY OPERATING FUND SCHEDULE OF DUE TO CURRENT FUND BALANCE. DECEMBER DECREASED BY Cash Disbursed BALANCE. DECEMBER D 1-D D $ 8, , $=====

199 SEWER UTILITY CAPITAL FUND SCHEDULE OF DUE TO SEWER UTILITY OPERATING FUND Schedule 19-D BALANCE. DECEMBER 31 I 2014 D $ INCREASED BY Interest Received 1-D 2, DECREASED BY Cash Disbursed - Current Year's lnterfund Liquidated 1-D 2, , BALANCE. DECEMBER 31, 2015 D $====

200 Schedule 20-D SEWER UTILITY CAPITAL FUND STATEMENT OF BOND ANTICIPATION NOTES PAYABLE Ordinance Number Description Date of Balance Original Date of Date of Interest December 31, Issue Issue Maturity Rate 2014 Balance December 31, Increased Decreased Improvements to the Sewer Plant 06/20/13 06/20/13 06/19/ % $ 1,250, /20/13 06/19/15 06/17/ % $ 1,250, $ 1,250, $ 1,250, $ 1, 250, $ 1,250, $ 1,250, $ 1,250, Ref. D 1-D 1-D D

201 Schedule 21-D SEWER UTILITY FUND SCHEDULE OF RESERVE FOR ENCUMBRANCES Operating Fund Capital Fund BALANCE. DECEMBER 31 I 2014 D $ 126, INCREASED BY Budget Appropriations Charged D-3 84, Improvement Authorizations Charged 11-D 210, DECREASED BY Transfer to Appropriation Reserves 7-D 125, Cash Disbursed 1-D $ 42, , , BALANCE. DECEMBER 31, 2015 D $ 84, $ 42,941.47

202 Schedule 22-D SEWER UTILITY CAPITAL FUND SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED Ordinance Number Balance Balance December 31, December 31, Description Preliminary Planning Expenses - Sanitary and Storm Sewer Improvements - Springwood Ave. and Central Business District $ 16, $ 16, Sanitary and Storm Sewer Improvements - Springwood Ave. and Central Business District 517, , Improvement to the Sewer Plant 2,050, ,050, $ 2,584, $ 2,584, Ref. D D

203 BEACH UTILITY FUND SCHEDULES

204 BEACH UTILITY OPERATING FUND SCHEDULE OF CASH AND CASH EQUIVALENTS Schedule 1-E Ref. BALANCE, DECEMBER 31, 2014 E $ 391, INCREASED BY Receipts from Municipal Bathing E-2 $ 1,802, Beach Chair and Locker Rentals E-2 73, Prepaid Beach Fees 4-E 13, Miscellaneous Income E-2 2, ,891, ,283, DECREASED BY Budget Appropriations E-3 $ 1,212, Appropriation Reserves 3-E 33, ,245, BALANCE, DECEMBER 31, 2015 E $ 1,037,868.08

205 Schedule 2-E BEACH UTILITY OPERATING FUND SCHEDULE OF RESERVE FOR ENCUMBRANCES BALANCE, DECEMBER 31, 2014 E $ 31, INCREASED BY 2015 Appropriations Charged E-3 DECREASED BY Cancelled E-1 $ Transfer to Appropriation Reserves 3-E 31, , , , BALANCE, DECEMBER 31, 2015 E $ 17,836.88

206 Schedule 3-E BEACH UTILITY OPERATING FUND SCHEDULE OF 2014 APPROPRIATION RESERVES Balance December 31, 2014 Balance Appropriation Reserve for After Reserves Encumbrances Transfers Paid or Charged Balance Lapsed Operating: Salaries and Wages Other Expenses Statutory Expenditures: Social Security Unemployment Compensation $ 48, $ 48, , $ 31, , , , , , $ 114, $ 31, $ 145, $ 3, $ 44, , , , , , $ 33, $ 112, Ref. E E, 2-E 1-E E-1

207 Schedule 4-E BEACH UTILITY OPERATING FUND SCHEDULE OF PREPAID BEACH FEES Ref. BALANCE, DECEMBER E $ 12, INCREASED BY Prepaid Beach Fees Received 1-E DECREASED BY Applied to 2015 Revenue E-2 13, , , BALANCE, DECEMBER 31, 2015 E $ 13,020.00

208 PARKING UTILITY FUND SCHEDULES

209 Schedule 1-F PARKING UTILITY OPERATING FUND SCHEDULE OF CASH AND CASH EQUIVALENTS Ref. BALANCE, DECEMBER 31 I 2014 F INCREASED BY Receipts from Municipal Parking Fees F-2 $ 3,073, Miscellaneous Revenue Not Anticipated F-2 3, DECREASED BY Budget Appropriations F-3 1,969, Account Payable F Due to Current Fund F-1,11-F 690, Appropriation Reserves 4-F 53, Interest on Notes 5-F 10, $ 1,375, ,077, ,452, ,723, BALANCE, DECEMBER 31, 2015 F $ 1,729,129.16

210 Schedule 2-F PARKING UTILITY CAPITAL FUND SCHEDULE OF CASH AND CASH EQUIVALENTS Description Recei~ts Disbursements Balance Bond Bond Balance December 31, Anticipation Anticipation Improvement December 31, 2014 Notes Other Notes Authorizations 2015 Ordinance Number Due (from) Current Fund $ (11,426.81) $ 11, Fund Balance 1, $ 1, Reserve for Payment of Notes 226, , Reserve for Parking Improvements 27, , Parking Meter Pay Stations 9, $ 800, $ 800, $ , $ - $ 800, $ 265, $ 800, $ $ 264, Ref. F 6-F 12-F, 14-F, 15-F 6-F 7-F F

211 Schedule 3-F PARKING UTILITY OPERATING FUND SCHEDULE OF RESERVE FOR ENCUMBRANCES BALANCE, DECEMBER 31 I 2014 F $ 51, INCREASED BY 2015 Appropriations Charged F-3 DECREASED BY Transfer to Appropriation Reserves 4-F 21, , , BALANCE, DECEMBER F $ 21,617.16

212 Schedule 4-F PARKING UTILITY OPERATING FUND SCHEDULE OF 2014 APPROPRIATION RESERVES Balance December 31, 2014 Balance Appropriation Reserve for After Reserves Encumbrances Transfers Paid or Charged Balance Lapsed Operating: Salaries and Wages Other Expenses MCIA Lease Purchase Capital Improvements: Capital Outlay $ 8, $ 8, , $ 51, , , , $ 8, $ 52, , , Statutory Expenditures: Social Security System 7, , Unemployment Comensation Insurance 15, , $ 74, $ 51, $ 125, Ref. F F,3-F 7, , $ 53, $ 72, F F-1

213 Schedule 5-F PARKING UTILITY OPERATING FUND SCHEDULE OF ACCRUED INTEREST ON NOTES BALANCE, DECEMBER 31, 2014 INCREASED BY 2015 Budget Appropriation: Interest on Notes DECREASED BY Cash Disbursed BALANCE, DECEMBER 31, 2015 Ref. F F-3 1-F F, Below $ 12, , , , $ 10, ANALYSIS OF ACCRUED INTEREST Principal Outstanding December 31, 2015 Date of Issue Accrual Period Interest Rate Amount Outstanding December 31, 2015 Accrual Bond Anticipation Notes Parking Meter Pay Stations Ord. # /19/ days 1.00% $ 800, $ 4, Add: Amount Available For Use in Succeeding Year's Budget 6, $ 10,611.55

214 Schedule 6-F PARKING UTILITY CAPITAL FUND SCHEDULE OF BOND ANTICIPATION NOTES PAYABLE Ordinance Number Description Date of Balance Original Date of Date of Interest December 31, Issue Issue Maturity Rate 2014 Balance December 31, Increased Decreased Parking Meter Pay Stations 3037 Parking Meter Pay Stations 06/20/13 06/19/14 06/19/ % $ 800, /20/13 06/19/15 06/17/ % $ $ 800, $ $ 800, , $ 800, , $ 800, $ 800, Ref. F 2-F 2-F F

215 Schedule 7-F PARKING UTILITY CAPITAL FUND SCHEDULE OF IMPROVEMENT AUTHORIZATIONS Ordinance Number Description Balance December 31, Ordinance 2014 Date Amount Unfunded Balance December 31, Paid or 2015 Charqed Unfunded 3037 Parking Meter Pay Stations 1/24/2013 $ 800, $ 9, $ 9, $ $ 9, $ $ 9, Ref. F 12-F F

216 Schedule 8-F PARKING UTILITY CAPITAL FUND SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED Balance Ordinance Date December 31, Number Description Authorized Amount Parking Meter Pay Stations 1/24/2013 $ 800, $ 10, $ $ 10, $ Transferred to Balance Fixed December 31, Capital $ 9, $ 9, Ref. F 9-F F

217 PARKING UTILITY CAPITAL FUND SCHEDULE OF FIXED CAPITAL Schedule 9-F BALANCE, DECEMBER 31, 2014 F $ 808, INCREASED BY Additions by Capital Outlay Transfer from Fixed Capital Authorized and Uncompleted F-3, 10-F $ 139, F , BALANCE, DECEMBER 31, 2015 F,Below $ 949, Detail: 2013 Parking Meter Pay Stations 2014 Purchase of Vehicle 2014 and 2015 Pay Stations 2015 Parking Lot Paving Above $ 789, , , $ 949,048.95

218 Schedule 10-F PARKING UTILITY CAPITAL FUND SCHEDULE OF RESERVE FOR AMORTIZATION BALANCE. DECEMBER 31, 2014 F $ 18, INCREASED BY Capital Outlay Expenditures F-3, 9-F 139, BALANCE, DECEMBER F $ 158,275.26

219 Schedule 11-F PARKING UTILITY OPERATING FUND SCHEDULE OF DUE TO CURRENT FUND BALANCE, DECEMBER 31, 2014 F $ 93, DECREASED BY Cash Disbursed - lnterfund Liquidated 1-F 93, BALANCE, DECEMBER F $=====

220 Schedule 12-F PARKING UTILITY CAPITAL FUND SCHEDULE OF DUE FROM CURRENT FUND BALANCE. DECEMBER 31 I 2014 F $ 11, DECREASED BY Cash Receipt - lnterfund Liquidated 2-F 11, BALANCE. DECEMBER 31, 2015 F $=====

221 Schedule 13-F PARKING UTILITY CAPITAL FUND SCHEDULE OF CAPITAL LEASE OBLIGATIONS PAYABLE BALANCE, DECEMBER 31 I 2014 F $ 340, DECREASED BY Principal Payments Made on Parking Meter Capital Lease BALANCE, DECEMBER , F $ 87,901.37

222 Schedule 14-F PARKING UTILITY CAPITAL FUND SCHEDULE OF RESERVE FOR PARKING IMPROVEMENTS BALANCE. DECEMBER 31, 2014 F $ INCREASED BY Cash Receipts BALANCE. DECEMBER F F 27, $ 27,000.00

223 Schedule 15-F PARKING UTILITY CAPITAL FUND SCHEDULE OF RESERVE FOR PAYMENT OF NOTES BALANCE, DECEMBER 31, 2014 INCREASED BY Cash Receipts F $ 2-F 226, BALANCE, DECEMBER 31, 2015 F $ 226,648.30

224 PART II SINGLE AUDIT SECTION

225 WISS A Pa rtner to Grow With REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Honorable Mayor and Members of the City Council City of Asbury Park County of Monmouth Asbury Park, New Jersey INDEPENDENT AUDITORS' REPORT Report on Compliance for Each Major Federal Program We have audited the City of Asbury Park's, County of Monmouth, New Jersey ("City") compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended December 31, The City's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with federal and state statutes, regulations and the terms and conditions of federal awards applicable to its federal programs. Auditors' Responsibility Our responsibility is to express an opinion on compliance for each of the City's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the "Division") and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance'J. Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City's compliance. 14 Penn Plaza Suite 1010 New York. NY :; Eisenhower Park'. my. Suite 1850 Livingston. NJ Bartles Corner Road Flemington. NJ

226 Basis for Qualified Opinion on Community Development Block Grant Program and Assistance to Firefighters Program As described in the accompanying schedule of findings and questioned costs, the City did not comply with requirements regarding CFDA Community Development Block Grant Program as described in finding number for Cash Management and did not comply with requirements regarding CFDA Assistance to Firefighters Grant as described in finding number for Reporting. Compliance with such requirements is necessary, in our opinion, for the City to comply with the requirements applicable to those programs. Qualified Opinion on Community Development Block Grant and Assistance to Firefighters Grant In our opinion, except for the noncompliance described in the Basis for Qualified Opinion paragraph, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on the Community Development Block Grant Program and Assistance to Firefighters Program for the year ended December 31, Unmodified Opinion on the Other Major Federal Program In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its other major federal program identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs for the year ended December 31, Other Matters The results of our auditing procedures disclosed other instances on non-compliance, which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as items , and The City's response to the noncompliance findings identified in our audit are described in the accompanying schedule of findings and questioned costs. The City's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. Report on Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that cou ld have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we identified a certain deficiency in internal control over compliance that we consider to be a material weakness.

227 A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item to be a material weakness. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We did not consider the deficiencies in internal control cited above to be significant deficiencies. The City's response to the internal control over compliance finding identified in our audit is described in the accompanying schedule of findings and questioned costs. The City's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. Purpose of this Report The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purposes. David A Kaplan Registered Municipal Accountant No. 433 Livingston, New Jersey July 20, 2016 WISS & COMPANY, LLP

228 City of Asbury Park County of Monmouth Schedule A Schedule of Expenditures of Federal Awards Year Ended December 31, Federal Funding Department CFDA Number Total Award Grant Year Cash Receipts Expenditures U.S. Department of Homeland Security Pass-Through the State of New Jersey: Disaster Grants - Public Assistance Disaster Grants - Public Assistance $ 3,649, , $ , ,648 $ 226,648 Assistance to Firefighters Grant , ,700 24,700 Sub-total - Pass-Through Awards for U.S. Department of Homeland Security 418, ,348 U.S. Department of Health and Human Services Pass -Through the County of Monmouth: Multi-Purpose Senior Center , ,974 19,428 U.S. Department of Justice Hiring Recovery Program - Community Oriented: Police Service Police Service Police Service , ,000 1,376, ,037 86, , , , , , ,742 Edward Byrne Justice Assistance Grant , ,231 Total U.S. Department of Justice 496, ,742 U.S. Department of Housing and Urban Development Community Development Block Grant: Entitlement Community Development Block Grant: Entitlement , , , ,663 Total U.S. Department of Housing and Urban Development 189, ,663 U.S. Department of Labor Youth Employment Training Program , ,336 20,527 Total expenditures $ 1,165,419 $ 962,708 See accompanying Notes to Schedule of Expenditure of Federal Awards.

229 City of Asbury Park Notes to Schedule of Expenditures of Federal Awards December 31, General The accompanying schedule of expenditures of federal awards presents the activity of all federal awards of the City of Asbury Park (City). The City is defined in Note 1 to the City's basic financial statements. All federal awards received directly from federal agencies, as well as federal awards passed through other government agencies are included on the schedule of expenditures of federal awards. 2. Basis of Accounting The accompanying schedule of expenditures of federal awards is presented using the basis of accounting as described in Note 1 to the City's basic financial statements. 3. Relationship to Financial Statements Amounts reported in the accompanying schedule agree with amounts reported in the City's financial statements. 4. Relationship to Federal Financial Reports Amounts reported in the accompanying schedule of expenditures of federal awards agree with the amounts reported in the related federal financial reports. Expenditures incurred for Disaster Grants for Public Assistance are based upon project worksheets submitted to the Federal Emergency Management Agency. Several of the project worksheets are based upon estimated amounts and may change from preliminary estimates resulting in a reduction of funds to be received or funds due back to the granter agency.

230 City of Asbury Park Schedule of Findings and Questioned Costs Year ended December 31, 2015 Part I - Summary of Auditors' Results Financial Statement Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified - Regulatory Basis Adverse - U.S. GAAP Internal control over financial reporting: Material weakness(es) identified? x Yes No None Significant deficiency(ies) identified? Yes x Reported Noncompliance material to basic financial statements noted? x Yes No Federal Awards Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? Yes x No Type of auditors' report issued on compliance for major Unmodified for Disaster Grants federal programs: Qualified for CDBG and Firefighters Assistance Program Internal control over major federal programs: Material weakness(es) identified? x Yes No None Significant deficiency(ies) identified? Yes --- x Reported Any audit findings disclosed that are required to be reported in accordance with 2 CFR (a)? X Yes No Identification of major programs: Program Number(s) Name of Federal Program or Cluster Community Development Block Grant Program Disaster Grants - Public Assistance Firefighters Assistance Program

231 City of Asbury Park Schedule of Findings and Questioned Costs Year ended December 31, 2015 Part II - Financial Statement Findings Local Public Contracts Law MATERIAL WEAKNESS REPORTABLE INSTANCE OF NONCOMPLIANCE Condition/Context: Two vendors were paid in excess of $25, before December 23, 2015, for which no advertisement for bids was solicited. Criteria: New Jersey Local Public Contracts Law. Cause and Effect: The City received a 2014 audit recommendation regarding these two vendors as well as several other vendors who were paid in excess of the bid threshold. The City did take action by soliciting formal bids for these services in However, by the time the contracts were awarded in 2015, the legacy vendors had already been paid amounts that exceeded the bid threshold. Views of Responsible Officials and Planned Corrective Actions: City management concurs with the finding. The City will comply with the statute. Recommendation: It is recommended that competitive bids be solicited for all required goods and services Sewer Billings MATERIAL WEAKNESS REPORTABLE INSTANCE OF NONCOMPLIANCE Condition/Context: Sewer billings were inaccurate. Criteria: City's Ordinance and sewer rate resolution. Cause and effect: Several factors contributed to the inaccuracy of the sewer billings. The more material of those include the omission of one month's water consumption from the sewer billing computation and the incorrect rates being billed for various meter sizes. The effect is that sewer revenues were diminished. Views of Responsible Officials and Planned Corrective Actions: City management concurs with the finding. The City will correct its records and bill for the one month's water consumption that was omitted. Recommendation: accurately. It is recommended that sewer billing be computed

232 City of Asbury Park Schedule of Findings and Questioned Costs Year ended December 31, 2015 PART II - Financial Statement Findings - (Continued) Sewer Connection Fees MATERIAL WEAKNESS REPORTABLE INSTANCE OF NONCOMPLIANCE Condition/Context: Sewer connection fees were either not billed or paid on a timely basis. Criteria: City's Ordinance and sewer connection fee rate resolution. Cause and effect: Lack of control which would preclude applicants from receiving building permits until proof of sewer connection fee payment is provided. The effect is that sewer connection fee revenues were diminished. Views of Responsible Officials and Planned Corrective Actions: City management concurs with the finding. The City will review its sewer connection fee ordinance and also implement the control cited above. Recommendation: It is recommended that the City enforce the provisions of its Sewer Connection Fee Ordinance Information Technology MATERIAL WEAKNESS Condition/Context: Multiple data servers are in use throughout the City. We found that the finance, human resource, tax and sewer applications have no offsite data backup and we found the City had no data disaster recovery plan in place. Criteria: Sound internal control policy. Cause and effect: The City had been utilizing off-site backup for several of its servers but that practice was discontinued. The City has undergone significant changes in key financial positions. The effect is the unpreparedness for a catastrophic loss of data. Views of Responsible Officials and Planned Corrective Actions: City management concurs with the finding. The City Manager will ensure that a written data disaster recovery plan is developed and will also procure an appropriate automatic off-site data backup service. Recommendation: It is recommended that the City review its data disaster recovery plan and ensure all of its data servers are backed up daily off-site.

233 City of Asbury Park Schedule of Findings and Questioned Costs Year ended December 31, 2015 MATERIAL WEAKNESS MATERIAL NONCOMPLIANCE Part Ill- Schedule of Federal Awards Findings and Questioned Costs : Federal Program Community Development Block Grant ("CDBG") (CFDA #14.218) Criteria: In accordance with the Uniform Guidance, the City is required to maintain adequate documentation to support all amounts requested by draw-down. Statement of Condition: During our testing of the CDBG major program, we identified certain draw-down amounts that were not adequately supported by source documentation. Questioned Costs: None. Context: During our testing of Federal grant compliance, we selected a sample of payroll and non-payroll related charges, based on the composition of the types of expenditures charged to each major program. Our sample of payroll and non-payroll charges identified that amounts requested for expenditure reimbursement were not supported by either an itemized listing detailing which items the reimbursement request was made for and a lack of support for the items that were reimbursed. Cause and Effect: Violations of grant requirements could lead to a potential reduction in funding or return of funds. Recommendation: We suggest that every amount requested for reimbursement be supported by a lead sheet that details exactly which expenditures are being requested for reimbursement and adequate evidentiary documentation supporting each item claimed for reimbursement be maintained. Views of Responsible Officials and Planned Corrective Actions: City management concurs with the finding and has developed and approved a corrective action plan in response to the recommendation above.

234 City of Asbury Park Schedule of Findings and Questioned Costs Year ended December 31, 2015 Part Ill- Schedule of Federal Awards Findings and Questioned Costs - (Continued) Instance of Non-Compliance - Sub-recipient monitoring : Federal Program Community Development Block Grant ("CDBG") (CFDA #14.218) Criteria: In accordance with the Uniform Guidance, the City is required to perform monitoring of a sub recipient's activities to determine if the objectives of the activities were met. Statement of Condition: During our testing of the CDBG major program, we identified one instance where the City awarded funds to a sub recipient but did not monitor the sub recipient's success in achieving the objectives of the activity. Questioned Costs: None. Context: During our testing of Federal grant compliance, we selected a sample of payroll and non-payroll related charges, based on the composition of the types of expenditures charged to each major program. Our sample of non-payroll charges identified that amounts were paid to sub recipients based on approved program goals and objectives but no monitoring of the success or failure of the program occurred. Cause and Effect: Violations of grant requirements could lead to a potential reduction in funding or return of funds. Recommendation: We suggest that when the City grants sub recipients awards, the results of the sub recipients' activity be determined by the City through monitoring. Views of Responsible Officials and Planned Corrective Actions: City management concurs with the finding and has developed and approved a corrective action plan in response to the recommendation above.

235 City of Asbury Park Schedule of Findings and Questioned Costs Year ended December 31, 2015 Part Ill- Schedule of Federal Awards Findings and Questioned Costs - (Continued) Instances of Non-Compliance - Reporting : Federal Programs Community Development Block Grant ("CDBG") (CFDA #14.218) Assistance to Firefighters Grant (CFDA #97.044) Criteria: In accordance with the Uniform Guidance, the City is required to submit semiannual financial and performance reports on a periodic basis as stipulated in the grant agreements. Statement of Condition: During our testing of the CDBG and Assistance to Firefighters Grant major programs, we identified instances where the City failed to submit required financial and performance reports. Questioned Costs: None. Context: During our testing of Federal grant compliance, we requested semiannual financial and performance reports and final financial and performance reports. Cause and Effect Violations of grant requirements could lead to a potential reduction in funding or return of funds. Recommendation: We suggest that the City prepare and file all semiannual financial and performance reports and all final financial and performance reports on a timely basis. Views of Responsible Officials and Planned Corrective Actions: City management concurs with the finding and has developed and approved a corrective action plan in response to the recommendation above. Instance of Non-Compliance- Special Tests and Provisions : Federal Program Community Development Block Grant ("CDBG") (CFDA #14.218) Criteria: In accordance with the Uniform Guidance, the City is required to maintain written documentation of the pre and post inspections of all rehabilitation projects.

236 City of Asbury Park Schedule of Findings and Questioned Costs Year ended December 31, 2015 Part Ill- Schedule of Federal Awards Findings and Questioned Costs- (Continued) Statement of Condition: During our testing of the CDBG Grant major programs, we identified one instance where the City failed to provide written documentation of the pre and post inspection of a rehabilitation project it undertook. Questioned Costs: None. Context: During our testing of Federal grant compliance, we requested written evidence of the pre and post inspection of the one rehabilitation project that was undertaken. No such evidence was provided to us. Cause and Effect Violations of grant requirements could lead to a potential reduction in funding or return of funds. Recommendation: We suggest that the City perform ad document, in writing, pre and post inspections of all CDBG funded rehabilitation projects. Views of Responsible Officials and Planned Corrective Actions: City management concurs with the finding and has developed and approved a corrective action plan in response to the recommendation above. Instance of Non-Compliance Data Collection Form for Reporting on Audits of States, Local Governments and Non-Profit Organizations Criteria: In accordance with the Uniform Guidance, the City is required to file its Data Collection Form at the end of the fiscal year within 1 month subsequent to receipt of the audit report. Statement of Condition: During our single audit, we noted that the City did not file its 2014 Data Collection Form. Questioned Costs: None. Context: One of the determining factors in establishing whether or not an auditee may be deemed a low risk auditee is the requirement that the Data Collection Form be timely filed.

237 City of Asbury Park Schedule of Findings and Questioned Costs Year ended December 31, 2015 Part Ill- Schedule of Federal Awards Findings and Questioned Costs- (Continued) Cause and Effect Staff turnover and lack of proper delegation of responsibility for preparing and filing the data collection form are the primary causative factors. The effect is the automatic treatment of the auditee as high risk. Recommendation: It is recommended that the City file its Data Collection Forms timely. Views of Responsible Officials and Planned Corrective Actions: City management concurs with the finding. The City's Chief Financial Officer will file Data Collection Forms timely.

238 City of Asbury Park Schedule of Prior Year Findings Year ended December 31, : Statement of Condition: During our testing of the CDBG major program, we identified certain activities that were performed but not outlined in either its Action Plan or CAPER. Status: This condition has been corrected : Statement of Condition: During our testing of the CDBG major program, we identified certain draw-down amounts that were not adequately supported by source documentation. Status: This condition has not been corrected and corrective action is repeated as finding : Statement of Condition: During our testing of the CDBG major program, we identified one instance where a contractor performed services for the City but did not provide the City with certified payrolls which would have enabled the City to ensure the contractor complied with the provisions of the Davis Bacon Act. Status: This condition has been corrected : Statement of Condition: During our testing of the CDBG major program, we identified one instance where the City awarded funds to a sub recipient but did not monitor the sub recipient's success in achieving the objectives of the activity. Status: This condition has not been corrected and corrective action is repeated as finding : Statement of Condition: During our testing of the CDBG major program, we identified one instance where the City determined that an environmental review was not necessary, but failed to document the exemption. Status: This condition has been corrected.

239 PART Ill COMMENTS SECTION - GENERAL AND OTHER COMMENTS SUPPLEMENTARY INFORMATION

240 COUNTY OF MONMOUTH, NEW JERSEY SUPPLEMENTARY DATA YEARS ENDED DECEMBER 31, 2015 AND 2014 Comparative Statements of Operations and Changes in Fund Balance - Current Fund Year2015 Year2014 Amount Percent Amount Percent Revenue and Other Income Realized Fund Balance Utilized $ 2, 104, % $ 515, % Miscellaneous - From Other Than Local Property Taxes 26,318, % 25,445, % Collection of Delinquent Taxes and Tax Title Liens 229, % 53, % Collection of Current Tax Levy 26,919, % 25,617, % Other Credits to Income 1,755, % 1,363, % Total Revenue 57,326, % 52,996, % Expenditures Budget Expenditures: Municipal Purposes 42,683, % 40,292, % County Taxes 4,264, % 3,689, % Local District School Tax 6,867, % 6,785, % Other Expenditures 136, % 131, % Total Expenditures 53,951, % 50,898, % Excess in Revenues Over Expenditures 3,374, ,097, Adjustments to Income Before Fund Balance: Expenditures Included Af:Jove Which are by Statute Deferred Charges to Budgets of Succeeding Years 75, Statututory Excess to Fund Balance 3,449, ,097, Fund Balance, January 1 3,412, ,830, ,862, ,928, Decreased by: Utilized as Anticipated Revenue 2, 104, Fund Balance, December 31 $ 4,758, $ 3,412,799.85

241 COUNTY OF MONMOUTH, NEW JERSEY SUPPLEMENTARY DATA (CONTINUED) YEARS ENDED DECEMBER 31, 2015 AND 2014 Comparative Statements of Operations and Changes in Fund Balance - Sewer Utility Fund Year2015 Year2014 Amount Percent Amount Percent Revenue and Other Income Realized Fund Balance Utilized $ 195, Collection of Sewer Rents $ 4,324, % 4,501, Miscellaneous - From other Than Sewer Rents 903, % 866, Total Revenue 5,228, % 5,563, Expenditures Budget Expenditures: Operating 1,736, % 1,962, Deferred Charges and Statutory Expenditures 110, % 77, Debt Service 3,435, % 3,560, Other Expenditures 30, Total Expenditures 5,282, % 5,630, Deferred Charge - Deficit in Operations $ 54, $ 66, Fund Balance, January 1 $ $ 195, Decreased by: Utilized as Anticipated Revenue 195, Fund Balance, December 31 $ ===== $ ======

242 COUNTY OF MONMOUTH, NEW JERSEY SUPPLEMENTARY DATA (CONTINUED) YEARS ENDED DECEMBER 31, 2015 AND 2014 Comparative Statements of Operations and Changes in Fund Balance - Beach Utility Fund Year2015 Year2014 Amount Percent Amount Percent Revenue and Other Income Realized Fund Balance Utilized $ 125, % $ 125, % Receipts from Municipal Bathing 1,815, % 1,235, % Beach Chair Locker Rentals 73, % 64, % Miscellaneous 2, % 1, % Other Credits to Income 113, % 5, % Total Revenue 2, 129, % 1,432, % Expenditures Budget Expenditures: Operating 1, 166, % 1,098, % Deferred Charges and Statutory Expenditures 110, % 106, % Total Expenditures 1,276, % 1,205, % Excess in Revenues/Statutory Excess to Fund Balance 853, , Fund Balance, January 1 232, , ,086, , Decreased by: Utilized as Anticipated Revenue 125, , Fund Balance, December 31 $ 961, $ 232,665.44

243 COUNTY OF MONMOUTH, NEW JERSEY SUPPLEMENTARY DATA (CONTINUED) YEARS ENDED DECEMBER 31, 2015 AND 2014 Comparative Statements of Operations and Changes in Fund Balance - Parking Utility Fund Year2015 Year2014 Amount Percent Amount Percent Revenue and Other Income Realized Municipal Parking Fees $ 3,073, % $ 2,452, % Miscellaneous 76, % 192, % Total Revenue 3, 150, % 2,645, % Expenditures Budget Expenditures: Operating 685, % 620, % Deferred Charges and Statutory Expenditures 47, % 42, % Capital Improvements 175, % 20, % Debt Service 275, % 284, % Surplus (General Budget) 1,004, % 1,004, % other Expenditures % Total Expenditures 2,187, % 1,970, % Excess in Revenues/ Statutory Excess to Fund Balance 963, , Fund Balance, January 1 1, 142, ,064, , 105, ,739, Decreased by: Transferred to Current Fund 597, , Fund Balance, December 31 $ 1,508, $ 1, 142,459.81

244 COUNTY OF MONMOUTH, NEW JERSEY SUPPLEMENTARY DATA (CONTINUED) YEARS ENDED DECEMBER 31, 2015 AND 2014 Comparison of Tax Levies and Collections Percentage Year Tax Levy Collections of Collections * 2015 $ 26,942, $ 26,919, % ,674, ,617, % ,632, ,452, % ,096, , 749, % ,611, ,486, % * Percentages of collections are resultant from the City's annual accelerated tax sale. Comparative Schedule of Tax Rates * Tax Rate $ $ $ $ $ Apportionment of Tax Rate: Municipal $ $ $ $ $ Municipal Library County Local School * 2014 tax rates reflect property revaluation, with Local School rate impacted in 2015.

245 COUNTY OF MONMOUTH, NEW JERSEY SUPPLEMENTARY DATA (CONTINUED) Officials in Office and Surety Bonds Name Title Amount of Bond John Moor Mayor Amy Quinn Deputy Mayor Jesse Kendle Councilman Joe Woerner Councilman Amy Quinn Councilwoman Michael Capabianco City Manager Name of Coq2orate Surety Cindy Dye, RMC Municipal Clerk Richard J. Gartz, CPA, Chief Financial Officer $1,000,000.00* RMA Tyrone A Young, CTC Tax Collector $1,000,000.00* Mark Apostolou Municipal Court Judge Patricia Green Court Administrator $1,000,000.00* Erick Aguiar Assessor Frederick Raffetto Attorney Fidelity & Deposit Co. of Maryland *Blanket bond through JIF All of the Bonds were examined and appear to be properly executed.

246 GENERAL COMMENTS DECEMBER 31, 2015 Contracts Required To Be Advertised for N.J.S. 40A:11-4 N.J.S. 40A:11-4a states "Every contract awarded by the contracting agent for the provision or performance of any goods or services, the cost of which exceeds the bid threshold (N.J.S. 40A: 11-3), shall be awarded only by resolution of the governing body of the contracting unit to the lowest responsible bidder after public advertising for bids and bidding therefore, except as is provided otherwise in this act or specifically by any other law. The governing body of a contracting unit may, by resolution approved by a majority of the governing body and subject to subsections b. and c. of this section, disqualify a bidder who would otherwise be determined to be the lowest responsible bidder, if the governing body finds that it has had prior negative experience with the bidder. If the purchasing agent is a qualified purchasing agent, the governing body of the contracting unit may establish that the bid threshold may be up to $36, until June 30, 2015 and $40, thereafter. Authorization was granted by the governing body to increase the previously established bid threshold of $25, to $40,000.00, effective December 23, 2015 as the City's purchasing agent is a qualified purchasing agent. Accordingly, the City's 2015 bid threshold at December 31, 2015 is $40, The governing body of the municipality has the responsibility of determining whether the expenditures in any category will exceed $25,000.00/$40, within the fiscal year. When a question arises, the City Counsel's opinion should be sought before a commitment is made. The system of records did not provide for an accumulation of payments for categories of materials or supplies, or related work or labor. Disbursements were reviewed, however, to determine whether any clear-cut violations existed. The minutes indicate that resolutions were adopted authorizing the awarding of contracts or agreements for "Professional Services" per N.J.S. 40A:11-5. Professional Service contract awards were advertised in Our examination of expenditures on a test basis did reveal individual payments, contracts or agreements that were made in excess of $25,000.00/$40, "for the performance of any work or the furnishing of labor, materials or supplies or the hiring of teams or vehicles" other than those where bids had been previously sought by public advertisement or where a resolution had been previously adopted under the provision of N.J.S. 40A:11-6. Except as noted below, our examination of expenditures revealed that no payments were made in excess of $25,000.00/$40, "for the performance of any work or the furnishing or hiring of any materials or supplies" other than those where bids had been previously sought by public advertisement or where a resolution had been previously adopted under the provision of N.J.S. 40A:11-6.