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BOROUGH OF WALDWICK
BERGEN COUNTY, NEW JERSEY
REPORT OF AUDIT
FOR THE YEAR ENDED DECEMBER 31, 2016
Exhibits
A A-1
A-2 A-3 B B-1 B-2 c C-1
D
D-1
D-2
D-3 D-4 E
A-4 A-5 A-6
A-7 A-8 A-9 A-10 A-ll A-12 A-13 A-14 A-15 A-16 A-17 A-18
BOROUGH OF WALDWICK TABLE OF CONTENTS
PART I- Report on Andit of Financial Statements and Supplementary Schedules
Independent Auditor's Report
Financial Statements
Comparative Balance Sheets -Regulatory Basis - Current Fund Comparative Statements of Operations and Changes in Fund Balance -
Regulatory Basis - Current Fund Statement of Revenues -Regulatory Basis- Current Fund Statement of Expenditures -Regulatory Basis - Current Fund Comparative Balance Sheets- Regulatory Basis - Trust Funds Statement of Revenues -Regulatory Basis -Municipal Open Space Trust Fund Statement of Appropriations- Regulatory Basis- Municipal Open Space Trust Fund Comparative Balance Sheets- Regulatory Basis - General Capital Fund Comparative Statements of Changes in Fund Balances- Regulatory Basis -
General Capital Fund Comparative Balance Sheets -Regulatory Basis - Water Utility Operating Fund and
Water Utility Capital Fund Comparative Statements of Operations and Changes in Fund Balance -
Regulatory Basis - Water Utility Operating Fund Comparative Statements of Changes in Fund Balances -Regulatory Basis -
Water Utility Capital Fund Statement of Revenues- Regulatory Basis- Water Utility Operating Fund Statement of Expenditures- Regulatory Basis- Water Utility Operating Fund Comparative Balance Sheets- Regulatory Basis -General Fixed Assets Account Group
Notes to Financial Statements
Supplementary Schedules
Current Fund
Statement of Current Cash- Collector-Treasurer Statement of Change Funds Statement of Due from State of New Jersey Senior Citizens' and Veterans' Deductions
Statement of Taxes Receivable Statement of Tax Title Liens Receivable Statement of Grants Receivable Statement of Revenue Accounts Receivable Statement of20 J 5 Appropriation Reserves Statement of Accounts Payable Statement of Prepaid Taxes Statement of Tax Overpayments Statement of County Taxes Payable Statement of Local District School Taxes Payable Statement of Due to State of New Jersey- Sales Tax Payable Statement of Miscellaneous Reserves
1-3
4
5 6-7 8-12 13-14
15 15 16
17
18-19
20
21 21 22 23
24-61
62 63
63 64 65 65 66
67-68 69 69 70 70 70 71 71
Exhibits
A-19 A-20 A-21
B-3 B-4 B-5 B-6 B-7 B-8 B-9 B-10
B-11 B-12 B-13 B-14
B-15 B-16
B-17 B-18 B-19 B-20 B-21 B-22 B-23
C-2 C-3 C-4 C-5 C-6 C-7 C-8 C-9 C-10 C-11 C-12 C-13 C-14 C-15 C-16 C-17 C-18
BOROUGH OF WALDWICK TABLE OF CONTENTS
Supplementary Schedules (Continued)
Current Fund (Continued)
Statement of Appropriated Reserves- Public and Private Programs Statement of Unappropriated Reserves- Public and Private Programs Statement of Due to State ofNew Jersey- Construction Code Fees Payable
Trust Funds
Statement of Trust Cash- Collector-Treasurer Statement of Due to State of New Jersey- Animal Control Fund Statement of Due to Current Fund- Animal Control Fund Statement of Reserve for Animal Control Expenditures- Animal Control Fund Statement of Due to/from Current Fund- Park and Ride Contingency Fund Statement of Due to/from Other Trust Fund- Park and Ride Contingency Fund Statement of Due to General Capital Fund- Park and Ride Contingency Fund Statement of Reserve for Park and Ride Expenditures -
Park and Ride Contingency Fund Statement of Due to Other Trust Fund- Unemployment Insurance Trust Fund Statement of Due to State ofNew Jersey- Unemployment Insurance Trust Fund Statement of Due to Current Fund- Unemployment Insurance Trust Fund Statement of Reserve for Unemployment Insurance Claims -
Unemployment Insurance Trust Fund Statement of Due to Current Fund- Self Insurance Trust Fund Statement of Reserve for Property Insurance Expenditures-
Self Insurance Trust Fund Statement of Due to Current Fund- Other Trust Fund Statement of Developer's Escrow and Other Reserves- Other Trust Fund Statement of Reserve for Payroll Deductions- Other Trust Fund Statement of Reserve for Coah Expenditures- Other Trust Fund Statement of Due from Current Fund- Municipal Open Space Trust Fund Statement of Due to General Capital Fund- Municipal Open Space Trust Fund Statement of Reserve for Municipal Open Space Expenditures -Municipal Open Space Trust Fund
General Capital Fund
Statement of General Capital Cash - Collector-Treasurer Analysis of General Capital Cash Statement of Due From Current Fund Statement of Due from Park & Ride Contingency fund Statement of Due from Municipal Open Space Trust Statement of Deferred Charges to Future Taxation- Funded Statement of Deferred Charges to Future Taxation- Unfunded Statement of Grant and Other Receivables Statement of General Serial Bonds Statement of New Jersey Environmental Infrastructure (NJEIT) Loan Payable Statement of Bond Anticipation Notes Statement of Improvement Authorizations Statement of Accounts Payable Statement of Reserve for Payment of Debt Service Statement of Reserve for Pistol Range Statement of Capital Improvement Fund Statement of Bonds and Notes Authorized But Not Issued
72 72 72
73 74 74 74 75 75 75
76 76 76 76
77 77
77 78 78 79 79 79 80
80
81 82 83 83 83 84 85 86 87 88 89 90 91 91 91 91 92
Exhibits
BOROUGH OF WALDWICK TABLE OF CONTENTS
(Continued)
Supplementary Schedules (Continued)
Water Utility Fund
D-5 Statement of Water Utility Cash- Water Collector-Treasurer 93 D-6 Analysis of Water Utility Capital Cash 94 D-7 Statement of Consumer Accounts Receivable- Water Utility Operating Fund 94 D-8 Statement of New Jersey EIT Loan Receivable- Water Utility Operating Fund 95 D-9 Statement of Fixed Capital- Water Utility Capital Fund 95 D-10 Statement afFixed Capital Authorized and Uncompleted- Water Utility Capital Fund 96 D-11 Statement of 2015 Appropriation Reserves - Water Utility Operating Fund 97 D-12 Statement of Accounts Payable- Water Utility Operating and Capital Funds 97 D-13 Statement of Prepaid Water Rents - Water Utility Operating Fund 98 D-14 Statement of Water Rent Overpayments -Water Utility Operating Fund 98 D-15 Statement of State Water Loan Payable- Water Utility Capital Fund 98 D-16 Statement of Improvement Authorizations- Water Utility Capital Fund 99 D-17 Statement of Capital Improvement Fund- Water Utility Capital Fund 100 D-18 Statement of Due to Water Utility Operating Fund- Water Utility Capital Fund I 00 D-19 Statement of Due to/from Current Fund -Water Utility Operating Fund I 0 I D-20 Statement of Due from Other Trust Fund- Water Utility Operating Fund 101 D-21 Statement of Accrued Interest Payable on Bonds and Notes-
Water Utility Operating Fund I 02 D-22 Statement of Bond Anticipation Notes- Water Utility Capital Fund 103 D-23 Statement of Water Serial Bonds- Water Utility Capital Fund I 04 D-24 Statement of Accrued Interest Payable on Loans -Water Utility Operating Fund I 05 D-25 Statement of Reserve for Tax Map- Water Utility Operating Fund 105 D-26 Statement of Reserve for Amortization -Water Utility Capital Fund I 05 D-27 Statement of Deferred Reserve for Amortization- Water Utility Capital Fund I 06 D-28 Statement of Reserve for Payment of Debt- Water Utility Capital Fund 106 D-29 Statement of Bonds and Notes Authorized But Not Issued I 07
Part II- Government Auditing Standards
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 Auditor's Report I 08-109
Schedule of Expenditures of Federal Awards, Schedule A Schedule of Expenditures of State Financial Assistance, Schedule B
Notes to the Schedules of Expenditures of Federal Awards and State Financial Assistance
Schedule of Findings and Questioned Costs
110 Ill
112-113
114
BOROUGH OF WALDWICK TABLE OF CONTENTS
(Continued)
Part lll- Supplementary Data and Letter of Comments and Recommendations
Comparative Schedule of Tax Rate Infonnatiou Comparison ofT ax Levies and Collection Currently Deliuquent Taxes Property Acquired by Tax Title Lien Liquidatiou Comparison of Water Utility Levies Officials in Office Schedule of Findings of Noncompliance Recommendations
115 115 116 116 116 117
118-119 120
BOROUGH OF WALDWICK
BERGEN COUNTY
NEW JERSEY
PART I
REPORT ON AUDIT OF FINANCIAL STATEMENTS
AND SUPPLEMENTARY SCHEDULES
FOR THE YEAR ENDED DECEMBER 31, 2016
LERCH, VINCI & HIGGINS,LLP CERTIFIED PUBLIC ACCOUNTANTS REGISTERED MUNICIPAL ACCOUNTANTS
DJETER P. LERCH, CPA, RMA, PSA
GARY J. VINCI, CPA, RMA. PSA
GARY W. HIGGINS, CPA, RMA, PSA
JEFFREY C. BLISS, CPA, RMA, PSA
PAULl. LERCH, CPA, RMA, PSA
DONNA L. JAPHET, CPA, PSA
JULIUS B. CONSONI, CPA. PSA
ANDREW D. PARENTE, CPA, RMA, PSA
Honorable Mayor and Members of the Borough Council
Borough of Waldwick Waldwick, New Jersey
Report on the Financial Statements
INDEPENDENT AUDITOR'S REPORT
ELIZABETH A. SfllCK, CPA, RMA, PSA
ROBERT W. HAAG, CPA, PSA
DEBORAH K. LERCH, CPA, PSA
RALPH M. PICONE, CPA, RMA, PSA
DEBRA GOLLE, CPA
CINDY JANACEK , CPA, RMA
MARK SACO, CPA
SHERYL M. NICOLOSI , CPA
We have audited the accompanying balance sheets - regulatory basis of the various funds and account group of the Borough of Waldwick, as of December 31, 2016 and 2015, and the related statements of operations and changes in fund balance - regulatory basis for the years then ended, and the related statement of revenues - regulatory basis and statement of expenditures - regulatory basis of the various funds for the year ended December 31, 2016, and the related notes to the financial statements.
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 accounting and reporting provisions and practices that demonstrate compliance with the regulatory basis of accounting and budget laws prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey as described in Note 1. 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 fi:ee from material misstatements, whether due to fraud or error.
Auditor's 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, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and the audit requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves perfonning procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's 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 entity '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 entity '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.
17-17 ROUTE 208 • FAIR LAWN, NJ 07410• TELEPHONE (201) 791-7100 • FACSIMILE (201 ) 791-3035
WWW.LVHCPA.COM
1
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note I of the financial statements, the financial statements are prepared by the Borough of Waldwick on the basis of the financial accounting and reporting provisions and practices that demonstrate compliance with the regulatory basis of accounting and budget laws prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to meet the financial reporting requirements of the State of New Jersey for municipal government entities.
The effects on the financial statements of the variances between the regulatory basis of accounting described in Note I and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the "Basis for Adverse Opinion on U.S. 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 each fund of the Borough of Waldwick as of December 31,2016 and 2015, or changes in financial position, or, where applicable, cash flows for the years then ended.
Unmodified Opinion on Regulatory Basis of Accounting
In our opinion, the financial statements - regulatory basis referred to above present fairly, in all material respects, the financial position- regulatory basis of the various funds and account group of the Borough of Waldwick as of December 31, 2016 and 2015, and the results of operations and changes in fund balance- regulatory basis of such funds for the years then ended and the respective revenues - regulatory basis and expenditures - regulatory basis of the various funds for the year ended December 31, 2016 in accordance with the financial accounting and reporting provisions and practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey as described in Note I.
Other Matters
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements of the Borough of Waldwick as a whole. The supplementary schedules listed in the table of contents, schedule of expenditures of federal awards, schedule of expenditures of state financial assistance and the supplementary data and letter of comments and recommendations section are presented for purposes of additional analysis and are not a required part of the financial statements of the Borough of Waldwick.
The supplementary schedules listed in the table of contents, schedule of expenditures of federal awards and schedule of expenditures of state financial assistance are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the 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 schedules listed in the table of contents, schedule of expenditures of federal awards and schedule of expenditures of state financial assistance are fairly stated, in all material respects, in relation to the financial statements as a whole on the basis of accounting described in Note I.
2
The supplementary data and letter of comments and recommendations section has not been subject to the auditing procedures applied in the audit of the financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated April 25, 2017 on our consideration of the Borough of Waldwick'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 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 Borough of Waldwick's internal control over financial reporting and compliance.
Fair Lawn, New Jersey April25, 2017
3
~I (ju, o/~~~ •, {£/ 41::H, VINCI & ~ LLP Certified Public Accountants Registered Municipal Accountants
Registered Municipal Accountant RMA Number CR00411
BOROUGH OF WALDWICK COMPARATIVE BALANCE SHEETS- REGULATORY BASIS
CURRENT FUND AS OF DECEMBER 31, 2016 AND 2015
ASSETS Reference
Cash A-4 Cash - Change Funds A-5 Grants Receivable A-9 Due from State ofNJ Senior Citizens' & Veterans'
Deductions A-6
Receivables and Other Assets With Full Reserves Delinquent Property Taxes Receivable A-7 Tax Title Liens Receivable A-8 Property Acquired for Taxes- Assessed Valuation A Revenue Accounts Receivable A-10 Due from Animal Control Fund B-5 Due from Park & Ride Contingency Fund B-7 Due from Other Trust Fund B-17 Due from Selflnsurance Trust Fund B-15 Due from Water Utility Operating Fund D-19
Total Assets
LIABILITIES, RESERVES AND FUND BALANCE
Liabilities Appropriation Reserves A-3,A-11 Accounts Payable A-12 Prepaid Taxes A-13 Tax Overpayments A-14 County Taxes Payable A-15 Due to Park & Ride Contingency Fund B-7 Due to Municipal Open Space Trust Fund B-21 Due to General Capital Fund C-4 Due to Water Utility Operating Fund D-19 Sales Tax Payable A-17 Miscellaneous Reserves A-18 Appropriated Reserves - Public and Private Programs A-19 Unappropriated Reserves - Public and Private Programs A-20 Construction Code Fees Payable A-21
Reserve for Receivables and Other Assets A Fund Balance A-1
Total Liabilities, Reserves and Fund Balance
The Accompanying Notes are an Integral Part of these Financial Statements 4
2016
$ 7,463,607 1,075
19,992
39,112
7,523,786
318,037 1,690
35,510 4,874
4,649 75,070
9,262
449,092
$ 7,972,878
$ 686,552 231,985 182,106 42,824
254 36
1,993 701,525
27,589 13,402 6,556
I ,894,822
449,092 5,628,964
$ 7,972,878
EXHIBIT A
2015
$ 6,812,280 1,075
19,662
38,179
6,871,196
276,561 790
35,510 9,894
14
86,592 !58
409,519
$ 7,280,715
$ 556,846 238,340 266,358
49,548 24,464
5,248 525
74,870 1,890 1,126
675,866 25,584 35,118
3,605
I ,959,388
409,519 4,911,808
$ 7,280,715
EXHIBIT A-1 BOROUGH OF WALDWICK
COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE REGULATORY BASIS- CURRENT FUND
FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
REVENUES AND OTHER INCOME REALIZED Fund Balance Utilized Miscellaneous Revenues Anticipated Receipts from Delinquent Taxes Receipts from Current Taxes Non-Budget Revenue Other Credits to Income
Unexpended Balance of Appropriation Reserves Cancelled Accounts Payable Interfunds Liquidated
EXPENDITURES Budget Appropriations
Operations Salaries and Wages Other Expenses
Capital Improvements Municipal Debt Service Deferred Charges and Statutory Expenditures
County Taxes Couuty Open Space Preservation County Share of Added and Omitted Taxes Local District School Taxes Municipal Open Space Taxes Other Debits
Senior Citizens Deductions Disallowed for Prior Year Taxes Interfunds Created Refund Prior Year Revenue
Total Expenditures
Excess in Revenue
Fund Balance, January I
Decreased by: Utilization as Anticipated Revenue
Fund Balance, December 31
The Accompanying Notes are an Integral Part of these Financial Statements 5
2016
$ 923,000 4,027,327
288,538 40,732,694
184,895
498,310
11,694
46,666,458
4,281,183 5,689,973
75,400 1,696,748 1,025,520 3,749,282
38,581 12,259
28,357,374 78,957
7,114 13,911
45,026,302
1,640,156
4,91 I ,808
6,551,964
923,000
$ 5,628,964
2015
$ 849,957 3,964,431
372,611 40,099,921
140,479
451,811 2,545
169
45,881,924
4,371,178 5,633,877
139,735 1,680,746 1,003,331 3,653,080
38,500 24,779
27,741,678 78,616
86,750 888
44,453,158
1,428,766
4,332,999
5,761,765
849,957
$ 4,911,808
BOROUGH OF WALDWICK STATEMENT OF REVENUES- REGULATORY BASIS
CURRENT FUND FOR THE YEAR ENDED DECEMBER 31,2016
FUND BALANCE ANTICIPATED
MISCELLANEOUS REVENUES Licenses
Alcoholic Beverages Other
Fees and Permits Construction Code Official Other
Fines and Costs Municipal Court
Interest and Costs on Taxes Sewer Privileges Cable Television Franchise Fees Energy Receipts Tax Police Training- Various Municipal Agreements Municipal Alliance on Alcoholism & Drug Abuse-
Donations Clean Communities Recycling Grant History Grant Reserve for Clean Communities Reserve for Police Vest Fund Reserve for Alcohol Education Grant Reserve for Crime Prevention Grant Reserve for Drunk Driving Enforcement Fund Uniform Fire Safety Act- Other Fees & Permits Cell Site Rental Solar Energy Credit
Total Miscellaneous Revenues
RECEIPTS FROM DELINQUENT TAXES
AMOUNT TO BE RAISED BY TAXES FOR SUPPORT OF MUNICIPAL BUDGET
Municipal Operations Free Public Library
Total General Revenues
Non-Budget Revenue
The Accompanying Notes are an Integral Part of these Financial Statements 6
Budget
$ 923,000
18,720 20,195
204,000 226,000
103,000 78,000
I 02,000 149,873
2,468,600 50,385
3,000 14,313 2,795 1,315 4,841 2,100 7,153 3,136
16,310 12,100
360,000 3,500
3,851,336
276,500
8,217,655 509,302
8,726,957
$ 13,777,793
Realized
$ 923,000
18,898 18,407
425,768 216,443
101,598 61,092
101,641 149,873
2,468,600 49,182
1,778 14,313 2,795 1,315 4,841 2,100 7,153 3,136
16,310 12,910
344,888 4,286
4,027,327
288,538
8,903,939 509,302
9,413,241
14,652,106
184,895
$14,837,001
EXHIBIT A-2
Page 1
Excess or (Deficit) Cancelled
$ 178 (1,788)
221,768 (9,557)
(1,402) (16,908)
(359)
(1,203)
$ 1,222
810 (15,112)
786
177,213 1,222
12,038
686,284
686,284
$ 875,535 $ 1,222
BOROUGH OF WALDWICK STATEMENT OF REVENUES- REGULATORY BASIS
CURRENT FUND FOR THE YEAR ENDED DECEMBER 31, 2016
(Continued)
ANALYSIS OF REALIZED REVENUES Allocation of Current Tax Collection
Revenue from Collections Less: Allocation to School, County and Municipal Open Space Taxes
Add: Appropriation "Reserve for Uncollected Taxes"
Balance for Support of Municipal Budget Appropriations
Fees and Permits- Other Borough Clerk Park and Ride Parking Meter Tax Collector Fire Prevention Bureau Police Swimming Pool
Licenses - Other Borough Clerk Board of Health
Non-Budget Cash Receipts Due From Animal Control Fund Due From Selflnsurance Trust Fund Due From General Capital Fund
The Accompanying Notes are an Integral Part of these Financial Statements 7
$
$
$
$
$
EXHIBIT A-2 Page 2
40,732,694 32,236,453
8,496,241
917,000
9,413,241
16,874 41,405 19,005
562 18,019
774 119,804
216,443
695 17,712
$ 18,407
$
$
181,288 28
196 3,383
184,895
BOROUGH OF WALDWICK STATEMENT OF EXPENDITURES- REGULATORY BASIS
CURRENT FUND FOR THE YEAR ENDED DECEMBER 31,2016
Am~rog:riated Expended
OPERATIONS- WITHIN "CAPS" GENERAL GOVERNMENT
General Administration Salaries and Wages Other Expenses
Mayor and Council Salaries and Wages Other Expenses
Municipal Clerk Salaries and Wages Other Expenses
Financial Administration Salaries and Wages
Audit Services Other Expenses
Revenue Administration Salaries and Wages Other Expenses Other Expenses- Liquid ofTTLs/Foreclosed
Property Tax Assessment Administration
Salaries and Wages Other Expenses
Legal Services and Costs Other Expenses
Engineering Services & Costs Other Expenses
Planning Board Salaries and Wages Other Expenses
Board of Adjustment Salaries and Wages Other Expenses
Insurance Self Insurance & Surety Bonds
(NJSA 40A:10-1 et seq.) General Liability Employee Group Health
Health Benefit Waiver
PUBLIC SAFETY FUNCTIONS Police
Salaries and Wages Other Expenses Other Expenses-Acquisition of Police
Vehicles Office of Emergency Management
Other Expenses
$
Budget
176,624 16,190
8,800 4,100
115,010 38,220
141,797
50,720
50,034 73,412
100
34,444 6,115
81,000
8,082
8,557 5,720
8,557 8,500
12,500 337,480 748,942
9,250
2,525,000 78,825
72,329
500
The Accompanying Notes are an Integral Part of these Financial Statements 8
$
Budget After Modification
176,624 16,190
8,800 4,100
115,610 39,120
141,797
50,720
50,089 73,357
100
34,444 6,115
81,000
8,082
8,557 5,720
8,557 8,500
12,500 337,480 748,942
9,250
2,525,000 77,825
73,329
500
$
Paid or Charged
176,624 12,506
8,419 2,742
115,220 39,113
137,889
50,556
50,085 63,409
34,403 2,825
69,865
7,924
8,557 4,918
8,557 4,270
12,500 289,251 686,725
9,246
2,474,103 75,906
66,087
$
Reserved
3,684
381 1,358
390 7
3,908
164
4 9,948
100
41 3,290
11,135
158
802
4,230
48,229 62,217
4
50,897 1,919
7,242
500
EXHIBIT A-3 Page 1
Unexpended Balance
Cancelled
BOROUGH OF WALDWICK STATEMENT OF EXPENDITURES- REGULATORY BASIS
CURRENT FUND FOR THE YEAR ENDED DECEMBER 31,2016
A[!:QrD:Qriated Exncnded
OPERATIONS- WITHIN "CAPS" (Con!' d) PUBLIC SAFETY FUNCTIONS (Cont'd)
Aid to Volunteer Ambulance Companies (First Aid Contribution)
Fire Salaries and Wages Other Expenses Other Expenses~ Fire Hydrant Service
Fire Prevention Bureau Salaries and Wages Other Expenses
PUBLIC WORKS FUNCTION Streets and Road Maintenance
Salaries and Wages Other Expenses Other Expenses - Snow Removal
Other Public Works Function Other Expenses- Mw1icipal Park and Ride Other Expenses- Traffic Control Devices
Solid Waste Collection (Sanitation) Garbage Collection
Recycling Salaries and Wages Other Expenses
Public Buildings and Grounds Other Expenses
Vehicle Maintenance (Municipal Garage) Other Expenses
HEALTH & HUMAN SERVICES Public Health Services
Salaries and Wages Other Expenses- Northwest Bergen
Comm. Contractual Welfare/ Administration of Public Assistance
Other Expenses
PARKS AND RECREATION FUNCTIONS Recreation Services and Programs
(Parks and Playgrounds) Salaries and Wages Other Expenses Other Expenses-Community Television
MUNICIPAL COllRT Salaries and Wages Other Expenses
Public Defender Other Expenses
Budget
$ 20,750
7,280 61,850 25,000
19,277 10,540
720,400 30,700
141,100
3,000 5,800
299,500
80,898 182,480
134,300
210,000
44,651
74,507
100
67,626 40,750
1,000
36,441 58,100
15,070
The Accompanying Notes are an Integral Part of these Financial Statements 9
Budget Afier Paid or Modification Charged
$ 20,750 $ 19,517 $
7,280 7,094 61,850 52,338 25,000 25,000
19,277 18,457 10,540 8,247
720,400 668,446 30,700 17,060
141,100 84,640
3,000 2,644 5,800 2,340
299,500 273,455
80,898 77,891 182,480 87,333
134,300 113,462
210,000 166,105
44,652 44,651
74,506 71,411
100
67,626 61,257 40,750 38,807
1,000 1,000
36,441 35,305 58,100 54,997
15,070 15,070
Reserved
1,233
186 9,512
820 2,293
51,954 13,640 56,460
356 3,460
26,045
3,007 5,147
20,838
43,895
3,095
100
6,369 1,943
1,136 3,103
$
EXHIBIT A-3 Page 2
Unexpended Balance
Cancelled
90,000
EXHIBIT A-3 Page 3
BOROUGH OF WALDWICK STATEMENT OF EXPENDITURES- REGULATORY BASIS
CURRENT FUND FOR THE YEAR ENDED DECEMBER 31,2016
Armropriated Exuended Unexpended Budget After Paid or Balance
OPERATIONS- WITHIN "CAPS" (Cont'd) Budget Modification Charged Reserved Cancelled OTHER COMMON OPERATING
FUNCTIONS Celebration of Public Events, Anniversary
or Holiday Other Expenses $ 5,000 $ 5,000 $ 2,661 $ 2,339
UNIFORM CONSTRUCTION CODE APPROPRIATIONS OFFSET BY DEDICATED REVENUES (NJAC5:23-4.l7) Uniform Construction Code Enforcement
Salaries and Wages 189,077 189,077 189,028 49 Other Expenses 4,340 4,340 4,316 24
UTILITY EXPENSES AND BULK PURCHASES Fuel Oil 100,000 92,100 46,684 45,416 Electricity 87,000 87,000 86,667 333 Telephone 32,400 32,400 32,400 Natural Gas 35,000 35,000 17,839 17,161 Street Lighting 120,000 120,000 100,488 19,512 Water 13,000 19,400 19,350 50 Sewerage Processing and Disposal 22,500 22,500 17,476 5,024
Landfill/Solid Waste Disposal Costs Sanitary Landfill Dump Fees 325,000 325,000 274,619 50,381
Total Operations Within "CAPS" 7,845,245 7,845,245 7,149,755 605,490 $ 90,000
Detail: Salaries and Wages 4,234,473 4,235,129 4,115,986 119,143 Other Expenses (Including Contingent) 3,610,772 3,610,116 3,033,769 486,347 90,000
STATUTORY EXPENDITURES Social Security System (O.A.S.I.) 314,904 314,654 270,191 44,463 Police & Firemen's Retirement System ofNJ 464,020 464,020 462,520 1,500 Public Employee Retirement System 210,020 210,270 210,198 72
Total Statutory Expenditures 988,944 988,944 942,909 46,035
Total Statutory Expenditures-Municipal Within "CAPS" 988,944 988,944 942,909 46,035
Total General Appropriations for Municipal Purposes Within "CAPS" 8,834,189 8,834,189 8,092,664 651,525 90,000
The Accompanying Notes are an Integral Part of these Financial Statements I 0
BOROUGH OF WALDWICK STATEMENT OF EXPENDITURES- REGULATORY BASIS
CURRENT FUND FOR THE YEAR ENDED DECEMBER31,2016
Appropriated Budget After Paid or
Expended
OPERATIONS- EXCLUDED FROM "CAPS" Budget Modification Charged Reserved
UTILITY EXPENSES AND BULK PURCHASES Northwest Bergen Sewer Authority
Share of Costs Village of Ridgewood- Contractual~ Sewer Boro ofHo-Ho-Kus- Contractual- Sewer Recycling Tax Appropriation
EDUCATION FUNCTION Maintenance of Free Public Library
(Ch. 82, P.L. 1985)
PlJBLIC SAFETY FUNCTION "911" Telecommunications System
PUBLIC WORKS FUNCTION NJPDES Storm water Permit
Streets and Roads Salaries and Wages
Other Expenses
INTERLOCAL MUNICIPAL SERVICE AGREEMENTS
Public Safety- Police Training Salaries and Wages Other Expense
PUBLIC AND PRIVATE PROGRAMS OFFSET BY REVENUES
County of Bergen Drug and Alcohol Awareness Grant Municipal Alliance
Local Share Recycling Grant Police Vest Fund Alcohol Education Grant Crime Prevention Grant Drunk Driving Enforcement Fund
History Grant Clean Communities Grant- Salaries and Wages
Total Operations Excluded from "CAPS"
Detail: Salaries and Wages Other Expenses
CAPITAL IMPROVEMENTS Capital Improvement FWld
Total Capital Improvements-Excluded from "CAPS"
$ 1,540,299 $ 2,800 3,167
12,300
521,804
9,815
19,000 2,600
7,900 42,485
3,000 2,795 2,100 7,153 3,136
16,310 1,315
19,154
2,217,133
46,054 2,171,079
75,400
75,400
'The Accompanying Notes are an Integral Part of these Financial Statements 11
1,540,299 $ 2,800 3,167
12,300
521,804
9,815
19,000 2,600
7,900 42,485
3,000 2,795 2,100 7,153 3,136
16,310 1,315
19,154
2,217,133
46,054 2,171,079
75,400
75,400
1,540,299 2,800 3,166 $ 9,888
521,804
9,814
19,000 2,000
4,450 42,010
1,778 2,795
885
1,041 19,154
2,180,884
42,604 2,138,280
75,400
75,400
2,412
600
3,450 475
1,215 7,153 3,136
16,310 274
35,027
3,450 31,577
$
EXHIBIT A-3 Page4
Unexpended Balance
Cancelled
1,222
1,222
1,222
BOROUGH OF WALDWICK STATEMENT OF EXPENDITURES- REGULATORY BASIS
CURRENT FUND FOR THE YEAR ENDED DECEMBER 31,2016
Ag:Qro:Qriated Ex)2ended
MUNICIPAL DEBT SERVICE-Payment of Bond Principal
futerest on Bonds Interest on Notes NJ Infrastructure Trust Loan
Loan Repayments for Principal and Interest .
Total Municipal Debt Service~ Excluded from "CAPS"
DEFERRED CHARGES MUNICIPAL-
Deferred Charges General Capital Fund Unfunded~ Ordinance No 06-06/20-06
Total Deferred Charges-Municipal Excluded from
"CAPS"
Total General Appropriations for Municipal Purposes Excluded from "CAPS"
Subtotal General Appropriations
Reserve for Uncollected Taxes
Total General Appropriations
Cash Disbursed Accounts Payable Due to General Capital Fund Reserve for Uncollected Taxes
Budget
$ 1,435,000 243,912
6,120
12,463
1,697,495
36,576
36,576
4,026,604
12,860,793
917,000
$ 13,777,793
The Accompanying Notes are an Integral Part of these Financial Statements 12
Budget After Modification
$ 1,435,000 243,912
6,120
12,463
1,697,495
36,576
36,576
4,026,604
12,860,793
917,000
$ 13,777,793
Paid or Charged
$ 1,435,000 243,912
6,095
11,741
1,696,748
36,576
36,576
3,989,608
12,082,272
917,000
$ 12,999,272
$ 11,828,923 228,349
25,000 917,000
$ 12,999,272
$
$
EXHIBIT A-3 Page 5
Unexpended Balance
Reserved Cancelled
$ 25
722
747
35,027 1,969
686,552 $ 91,969
686,552 $ 91,969
BOROUGH OF WALDWICK COMPARATIVE BALANCE SHEETS- REGULATORY BASIS
TRUST FUNDS AS OF DECEMBER 31, 2016 AND 2015
ASSETS
ANIMAL CONTROL FUND Cash
PARK AND RIDE CONTINGENCY FUND Cash Due from Current Fund Due from Other Trust Fund
OTHER TRUST FUND Cash Due from Park and Ride Contingency Fund Due from Unemployment Insurance Trust Fund
UNEMPLOYMENT INSURANCE TRUST FUND Cash
SELF INSURANCE TRUST FUND Cash
MUNICIPAL OPEN SPACE TRUST FUND
Cash Due from Current Fund
Total Assets
The Accompanying Notes are an Integral Part of these Financial Statements 13
Reference
B-3
B-3 B-7 B-8
B-3 B-8 B-11
B-3
B-3
B-3 B-21
$
$
EXHIBITB Page 1
2016 2015
27,457 $ 27,252
27,457 27,252
8,041 6,170 5,248
652
8,693 11,418
1,791,585 1,560,531 652
2,760
1,791,585 1,563,943
69,022 73,371
69,022 73,371
134,338 148,033
134,338 148,033
153,407 101,883 254 525
153,661 102,408
2,184,756 $ 1,926,425
BOROUGH OF WALDWICK COMPARATIVE BALANCE SHEETS - REGULA TORY BASIS
TRUST FUNDS AS OF DECEMBER 31, 2016 AND 2015
(Continued)
LIABILITIES, RESERVES AND FUND BALANCE
ANIMAL CONTROL FUND Due to State of New Jersey Due to Current Fund Reserve for Animal Control Expenditures
PARKANDRIDECONTINGENCYFUND Due to Current Fund Due to Other Trust Fund Due to General Capital Fund Reserve for Park and Ride Expenditures
OTHER TRUST FUND Due to Current Fund Due to Park and Ride Contingency Fund Due to Water Utility Operating Fund Developer's Escrow and Other Reserves Reserve for Payroll Deductions Payable Reserve for COAH Expenditures
UNEMPLOYMENT INSURANCE TRUST FUND Due to Other Trust Fund Due to St_ate of New Jersey Reserve for Unemployment Claims
SELF-INSURANCE TRUST FUND Due to Current Fund Reserve for Property Insurance Expenditures
MUNICIPAL OPEN SPACE TRUST FUND
Due to General Capital Fund Reserve for- Expenditures
Total Liabilities, Reserves and Fund Balance
The Accompanying Notes are an Integral Part of these Financial Statements 14
Reference
B-4 B-5 B-6
B-7 B-8 B-9
B-IO
B-I7 B-8
D-20 B-18 B-I9 B-20
B-11 B-12 B-14
B-15 B-16
B-22 B-23
$
$
EXHIBIT B Page2
20I6 20I5
2 $ I4
27,455 27,238
27,457 27,252
4,649 652
1! ,385 4,044 (6I9)
8,693 II ,4I8
75,070 86,592 652
288 1,523,425 1,212,796
30,96I 68,385 I6I,477 195,882
I ,791,585 1,563,943
2,760 2,251
69,022 68,360
69,022 73,371
158 134,338 147,875
134,338 148,033
70,628 15,000 83,033 87,408
153,661 102,408
2,184,756 $ 1,926,425
BOROUGH OF WALDWICK STATEMENT OF REVENUES-REGULATORY BASIS
MUNICIPAL OPEN SPACE TRUST FUND FOR THE YEAR ENDED DECEMBER 31, 2016
AnticiQated Budget After
Budget Modification Realized
Amount to be Raised by Taxation $ 78,703 $ 78,703 $ 78,957 Reserve Funds 14,122 14,122 9,493
$ 92,825 $ 92,825 $ 88,450
Reference B-2 B-2 B-22
STATEMENT OF APPROPRIATIONS-REGULATORY BASIS MUNICIPAL OPEN SPACE TRUST FUND
FOR THE YEAR ENDED DECEMBER 31, 2016
EXHIBITB-1
Excess or Deficit
$ 254 (4,629)
$ (4,375)
EXHIBITB-2
AQQfOQriated ExQended
Development of Lands for Recreation and Conservation:
Other Expenses
Reference
Budget After Budget Modification
$ 92,825 $ 92,825
$ 92,825 $ 92,825
B-1 B-1
Analxsis of Paid or Charged
Cash Disbursements
Due to General Capital
Fund
The Accompanying Notes are an Integral Part of these Financial Statements 15
Paid or Charged Reserved
$ 92,825 $
$ 92,825 $
B-22
$ 12,825
80,000
$ 92,825
BOROUGH OF WALDWICK COMPARATIVE BALANCE SHEETS- REGULATORY BASIS
GENERAL CAPITAL FUND AS OF DECEMBER 31,2016 AND 2015
Reference 2016
ASSETS
Cash C-2,C-3 $ 1,313,752 Deferred Charges to Future Taxation
Funded C-7 7,740,108
Unfunded C-8 1,989,525 Grant and Other Receivable C-9 416,888
Due from Current Fund C-4 36 Due from Park & Ride Contingency Fund C-5 Due from Municipal Open Space Trust Fund C-6 70,628
$ 11,530,937
LIABILITIES, RESERVES AND FUND BALANCE
General Serial Bonds C-10 $ 7,613,000
Loans Payable C-11 127,108 Bond Anticipation Notes C-12 1,843,400 Improvement Authorizations
Funded C-13 823,508 Unfunded C-13 709,452
Accounts Payable C-14 149,769 Reserve for Payment of Debt Service C-15 34,536 Reserve for Pistol Range C-16 I 0,839 Capital Improvement Fund C-17 37,770 Fund Balance C-1 181,555
$ 11,530,937
EXHIBITC
2015
$ 955,628
9,183,931 1,009,302
441,436 74,870 11,385 15,000
$ 11,691,552
$ 9,048,000 135,931 825,900
938,064 308,779 198,424 34,536
34,929 166,989
$ 11,691,552
There were bonds and notes authorized but not issued of$146, 125 and $183,402 at December 31, 2016 and 2015 respectively (Exhibit C-18).
The Accompanying Notes are an Integral Part of these Financial Statements 16
EXHIBIT C-1
BOROUGH OF WALDWICK COMPARATIVE STATEMENTS OF CHANGES IN FUND BALANCES- REGULATORY BASIS
GENERAL CAPITAL FUND FOR THE YEARS ENDED DECEMBER 31,2016 AND 2015
Balance, January 1
Increased by: Cancelled Improvement Authorizations
Decreased by: Loan Receivable Cancelled
Balance, December 31
The Accompanying Notes are an Integral Part of these Financial Statements 17
2016
$ 166,989
14,566
181,555
$ 181,555
2015
$ 178,297
178,297
11,308
$ 166,989
BOROUGH OF WALDWICK COMPARATIVE BALANCE SHEETS- REGULATORY BASIS
WATER UTILITY OPERATING FUND AS OF DECEMBER 31,2016 AND 2015
ASSETS Reference
Cash D-5
Change Fund D Due from Current Fund D-19 Due from Other Trust Fund D-20
Receivables With Full Reserves Consumer Accounts Receivable D-7
Total Assets
LIABILITIES, RESERVES AND FUND BALANCE
Liabilities Appropriation Reserves D-4,D-Il
Accounts Payable D-12
Prepaid Water Rents D-13
Water Rent Overpayments D-14 Due to Current Fund D-19 Due to Water Utility Capital Fund D-18
Reserve for Tax Map D-25 Accrued Interest Payable on Bonds and Notes D-21 Accrued Interest Payable on Loans D-24
Reserve for Receivables D Fund Balance D-1
Total Liabilities, Reserves and Fund Balance
The Accompanying Notes are an Integral Part of these Financial Statements 18
2016
$ 1,019,270 100
1,019,370
29,181
$ 1,048,551
$ 96,181 84,170
952 4,158 9,262 6,025 3,667 6,550
II ,615
222,580
29,181 796,790
$ 1,048,551
$
$
$
$
EXHIBITD Page I
2015
765,801 100
1,890 288
768,079
35,918
803,997
96,650 20,625
4,345 5,371
4,894 3,667 8,000
13,063
156,615
35,918 611,464
803,997
BOROUGH OF WALDWICK COMPARATIVE BALANCE SHEETS- REGULATORY BASIS
WATER UTILITY CAPITAL FUND AS OF DECEMBER 31,2016 AND 2015
(Continued)
Reference
ASSETS
Cash D-5,D-6
Fixed Capital D-9 Fixed Capital Authorized and Uncompleted D-10
NJ EIT Loan Receivable D-8 Due from Water Utility Operating Fund D-18
Total Assets
LIABILITIES, RESERVES AND FUND BALANCE
Serial Bonds Payable D-23
State Water Loans Payable D-15 Bond Anticipation Notes D-22 Accounts Payable D-12 Improvement Authorization Funded D-16
Unfunded D-16
Reserves for Amortization D-26 Deferred Amortization D-27
Payment of Debt D-28
Capital Improvement Fund D-17 Fund Balance D-2
Total Liabilities, Reserves and Fund Balance
2016
$ 112,350 8,569,831
265,367 5,000 6,025
$ 8,958,573
$ 996,000 1,073,736
248,000 27,599
4,198 56,797
6,500,113 16,680 4,008
10,145 21,297
$ 8,958,573
$
$
$
$
EXHIBITD Page2
2015
119,486 8,569,831
144,867 5,000 4,894
8,844,078
1,186,000 1,219,331
133,300 28,696
4,198 74,902
6, !51 ,546 I 0,880 4,008 9,920
21,297
8,844,078
There were bonds and notes authorized but not issued at December 31, 2016 and 2015 in the amount of $669
and $13,641, respectively (Exhibit D-29).
The Accompanying Notes are an Integral Part of these Financial Statements 19
EXHIBITD-1 BOROUGH OF WALDWICK
COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCEREGULATORY BASIS
WATER UTILITY OPERATING FUND FOR THE YEARS ENDED DECEMBER 31,2016 AND 2015
REVENUES AND OTHER INCOME Surplus Anticipated Rents Fire Hydrant Service Miscellaneous Other Credits to Income
Unexpended Balance of Appropriation Reserves
EXPENDITURES Budget Appropriations
Operating Capital Improvements Debt Service Deferred Charges and Statutory Expenditures
Refund of Prior Year Revenues
Excess in Revenue
Fund Balance, January I
Decreased by: Utilization by Water Operating Budget
Fund Balance, December 3 I
The Accompanying Notes are an Integral Part of these Financial Statements 20
2016
$ 1,947,310 25,000 14,019
73,572
2,059,901
1,315,937 6,025
395,406 157,207
1,874,575
185,326
611,464
796,790
$ 796,790
2015
$ 15,524 1,931,732
25,000 18,061
77,882
2,068,199
1,310,757 13,000
412,786 140,390
81
1,877,014
191,185
435,803
626,988
15,524
$ 611,464
EXHIBITD-2
BOROUGH OF WALDWICK COMPARATIVE STATEMENTS OF CHANGES IN FUND BALANCES- REGULATORY BASIS
WATER UTILITY CAPITAL FUND FOR THE YEARS ENDED DECEMBER 31,2016 AND 2015
Balance, January 1
Decreased by: Prior Year Authorizations Cancelled
Balance, December 3 1
STATEMENT OF REVENUES- REGULATORY BASIS WATER UTILITY OPERATING FUND
FOR THE YEAR ENDED DECEMBER 31,2016
Anticipated
Rents Fire Hydrant Service Miscellaneous
Analysis of Miscellaneous Revenue
Interest on Investments and Deposits Interest and Costs on Delinquent Accounts Other Miscellaneous
Analysis of Miscellaneous Revenue
Cash Receipts Due from Water Capital Fund
$
$
The Accompanying Notes are an Integral Part of these Financial Statements 21
1,847,974 25,000 18,000
1,890,974
$
$
$
$
$
$
$
$
2016 2015
21,297 $ 58,327
37,030
21,297 $ 21,297
EXHIBITD-3
Excess or Realized (Deficit)
1,947,310 $ 99,336 25,000 14,019 (3,981)
1,986,329 $ 95,355
3,832 4,102 6,085
14,019
13,946 73
14,019
BOROUGH OF WALDWICK STATEMENT OF EXPENDITURES- REGULATORY BASIS
WATER UTILITY OPERATING FUND FOR THE YEAR ENDED DECEMBER 31, 2016
Appropriated Expended
Operating Salaries and Wages Other Expenses
Capital Improvements Capital Improvement Fund
Debt Service Payment of Bond Principal Payment of Bond Anticipation Notes Interest on Bonds Interest on Notes Environmental Trust Principal & Interest
Deferred Charges and Statutory Expenditures Deferred Charges:
Costs of Improvements - Ordinance #5-95 Costs of Improvements - Ordinance #2-02
Statutory Expenditures: Public Employees Retirement System Social Security System
Cash Disbursed Accounts Payable Due to Water Utility Capital Fund Interest on Bonds and Notes Interest on Loans
$
$
Budget After Budget Modification
744,000 $ 744,000 571,937 571,937
6,025 6,025
I 90,000 190,000 2,004 2,004
32,180 32,180 3,440 3,440
I 84, I 8 I 184,181
12,276 12,276 696 696
89,580 89,580 54,655 54,655
1,890,974 $ 1,890,974
The Accompanying Notes are an Integral Part of these Financial Statements 22
Paid or Charged
$ 735,584 487,767
6,025
190,000
30,462 1,251
I 73,693
12,276 696
89,580 51,060
$ I ,778,394
$ 1,615,416 84,170 18,997 31,713 28,098
$ I ,778,394
Reserved
$ 8,416 84,170
3,595
$ 96,181
EXHIBIT D-4
Cancelled
$ 2,004 1,718 2,189
10,488
$ 16,399
ASSETS
Land
BOROUGH OF WALDWICK COMPARATIVE BALANCE SHEETS- REGULATORY BASIS
GENERAL FIXED ASSETS ACCOUNT GROUP AS OF DECEMBER 31, 2016 AND 2015
2016
$ 1,214,800 Buildings and Building Improvements 7,105,789 Machinery and Equipment 6,616,710
Total Assets $ 14,937,299
FUND BALANCE
EXHIBITE
2015
$ 1,214,800 7,105,789 6,222,536
$ 14,543,125
Investment in General Fixed Assets $ 14,937,299 $ 14,543,125
The Accompanying Notes are an Integral Part of these Financial Statements 23
NOTES TO FINANCIAL STATEMENTS
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The Borough of Waldwick (the "Borough") was incorporated in 1919 and operates under an elected Mayor and Council form of government. The Mayor is elected to a four-year term and the six council members are elected at-large, two each year for terms of three years. The Mayor is the Chief Executive Officer of the Borough and as such presides over all public meetings and makes appointments to various boards. The Borough Council exercises all legislative powers including final adoption of the municipal budget, bond ordinances and confirmation of the Mayor's appointments, and all executive authority which is not specifically provided to the Mayor, by state law. A Borough Administrator is appointed by the Borough Council and is responsible for the implementation of the policies of the Mayor and Council, for the administration of all Borough affairs and for the day to day operations of the Borough. The Borough Administrator is the Chief Administrative Officer for the Borough. The Borough's major operations include public safety, road repair and maintenance, sanitation, fire protection, recreation and parks, health services, and general administrative services.
GASB requires the financial reporting entity to include both the primary government and component units. Component units are legally separate organizations for which the Borough is financially accountable. The Borough is fmancially accountable for an organization if the Borough appoints a voting majority of the organization's governing board and (1) the Borough is able to significantly influence the programs or services performed or provided by the organization; or (2) the Borough is legally entitled to or can otherwise access the organization's resources; the Borough is legally obligated or has otherwise assumed the responsibility to finance the deficits of, or provide financial support to, the organization; or the Borough is obligated for the debt of the organization. Component units may also include organizations that are fiscally dependent on the Borough in that the Borough approves the budget, the issuance of debt or the levying of taxes. The Borough is not includable in any other reporting entity as a component unit.
The financial statements contained herein include only those boards, bodies, officers or commissions as required by NJS 40A:5-5. Accordingly, the financial statements of the Borough do not include the municipal library, volunteer fire department, volunteer ambulance squad, which are considered component units under GAAP. Complete financial statements of the above component units can be obtained by contacting the Treasurer of the respective entity.
B. Description of Regulatorv Basis of Accounting
The financial statements of the Borough of Waldwick have been prepared on a basis of accounting in conformity with accounting principles and practices prescribed or permitted by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the "Division") which is a regulatory basis of accounting other than accounting principles generally accepted in the United States of America (GAAP). 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 Borough accounts for its financial transactions through separate funds, which differ from the fund structure required by GAAP.
The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. GASB has adopted accounting statements to be used by governmental units when reporting financial position and results of operations in accordance with accounting principles generally accepted in the United States of America. (GAAP). The municipalities in the State of New Jersey do not prepare financial statements in accordance with GAAP and thus do not comply with all of the GASB pronouncements.
24
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Basis of Presentation- Financial Statements
The Borough uses funds, as required by the Division, to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial administration by segregating transactions related to certain Borough functions or activities. The Borough also uses an account group, which is designed to provide accountability for certain assets that are not recorded in those Funds.
The Borough has the following funds and account group:
Current Fund - This fund is used to account for the revenues and expenditures for governmental operations of a general nature and the assets and liabilities related to such activities, including Federal and State grants not accounted for in another fund.
Trust Funds- These funds are used to account for assets held by the government in a trustee capacity. Funds held by the Borough as an agent for individuals, private organizations, or other governments are recorded in the Trust Funds.
Animal Control Fund - This fund is used to account for fees collected from dog and cat licenses and expenditures which are regulated by NJS 4:19-15.11.
Park and Ride Contingency Fund- This fund is used to account for the receipts and disbursements relating to parking meter fees collected.
Other Trust Fund - This fund is established to account for the assets and resources, which are held by the Borough as a trustee or agent for individuals, private organizations, other governments and/or other funds. These funds include dedicated fees/proceeds collected, developer deposits, payroll related deposits and funds deposited with the Borough as collateral.
Unemployment Insurance Fund- This fund is used to account for employee and employer contributions for the purpose of providing unemployment benefits to former eligible employees.
Self- Insurance Fund- This fund is used to account for the resources and expenditures for property claims.
Municipal Open Space Trust Fund- This fund is used to account for resources that have accumulated from a dedicated tax and other resources to be nsed for the preservation of open space, recreation and farmland property.
General Capital Fund - This fund is used to account for the receipt and disbursement of funds used and related financial transactions related to the acquisition or improvement of general capital facilities and other capital assets, other than those acquired in the Current Fund.
Water Utility Fund - This fund is used to account for the revenues and expenditures for the operation of the Borough's water utility and the assets and liabilities relative to such activities. Acquisition or improvement of capital facilities and other capital assets for the water utility is accounted for in the capital section of the fund.
25
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2016 AND 2015
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Basis of Presentation- Financial Statements (Continued)
General Fixed Assets Account Group - This account group is used to account for all general fixed assets of the Borough, other than those accounted for in the water utility fund. The Borough's infrastructure is not reported in the account group.
Comparative Data - Comparative data for the prior year has been presented in the accompanying financial statements in order to provide an understanding of changes in the Borough's financial position and operations. However, comparative data have not been presented in all statements because their inclusion would make certain statements unduly complex and difficult to understand.
Reclassifications- Certain reclassifications may have been made to the December 31,2015 balances to confonn to the December 31, 2016 presentation.
Financial Statements- Regulatory Basis
The GASB Codification also requires the financial statements of a governmental unit to be presented in the basic financial statements in accordance with GAAP. The Borough presents the regulatory basis financial statements listed in the table of contents which are required by the Division and which differ from the basic financial statements required by GAAP. In addition, the Division requires the regulatory basis financial statements listed in the table of contents to be referenced to the supplementary schedules. This practice differs from reporting requirements under GAAP.
D. Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the accounting principles and practices prescribed by the Division in accordance with the regulatory basis of accounting. Measurement focus indicates the type of resources being measured. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.
The Borough of Waldwick follows a modified accrual basis of accounting. Under this method of accounting, revenues, except State/Federal Aid, are recognized when received and expenditures are recorded when incurred. The accounting principles and practices prescribed or permitted for municipalities by the Division ("regulatory basis of accounting") differ in certain respects from accounting principles generally accepted in the United States of America (GAAP) applicable to local government units. The more significant differences are as follows:
Cash and Investments - Cash includes amounts in demand deposits as well as short-term investments with a maturity date within three months of the date acquired by the government. Investments are reported at cost and are limited by N.J.S.A. 40A:5-15.1 et seq. GAAP requires that all investments be reported at fair value.
Inventories - The costs of inventories of supplies for all funds are recorded as expenditures at the time individual items are purchased. The costs of inventories are not included on the various balance sheets. GAAP requires inventories to be recorded as assets in proprietary-type funds.
26
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Measurement Focus and Basis of Accounting (Continued)
Property Tax Revenues/Receivables - Real property taxes are assessed locally, based upon the assessed value of the property. The tax biiJ includes a levy for Municipal, County, and School purposes. The bills are mailed annually in June for that calendar year's levy. Taxes are payable in four quarterly installments on February I, May I, August 1, and November 1. The amounts of the first and second installments are determined as one-quarter of the total tax levied against the property for the preceding year. The installment due the third and fourth quarters is determined by taking the current year levy less the amount previously charged for the first and second installments, with the remainder being divided equally. If unpaid on these dates, the amount due becomes delinquent and subject to interest at 8% per annnm, or 18% on any delinquency amount in excess of$1,500. A penalty of up to 6% of the delinquency may be imposed on a taxpayer with a delinquency in excess of $10,000 who fails to pay that delinquency prior to the end of the fiscal year in which the charges become delinquent. The school levy is turned over to the Board of Education as expenditures are incurred, and the balance, if any, must be transferred as of December 31, of each fiscal year. County taxes are paid quarterly on February 15, May 15, August 15 and November 15, to the County by the Borough. When unpaid taxes or any municipal lien, or part thereof, on real property, remains in arrears on April first in the year following the calendar year levy when the same became in arrears, the collector in the municipality shall, subject to the provisions of the New Jersey Statutes, enforce the lien by placing the property on a standard tax sale. The Borough also has the option when unpaid taxes or any municipal lien, or part thereof, on real property remains in arrears on the 11th day of the eleventh month in the fiscal year when the taxes or lien became in arrears, the collector in the municipality shall, subject to the provisions of the New Jersey Statutes, enforce the lien by placing property on an accelerated tax sale, provided that the sale is conducted and completed no earlier than in the last month of the fiscal year. The Borough may institute annual in rem tax foreclosure proceedings to enforce the tax collection or acquisition of title to the property. ln accordance with the accounting principles prescribed by the State of New Jersey, current and delinquent taxes are realized as revenue when collected. Since delinquent taxes and liens are fully reserved, no provision has been made to estimate that portion of the tax receivable and tax title liens that are uncollectible. GAAP requires property tax revenues to be recognized in the accounting period when they become susceptible to accrual (i.e., when they are both levied and available), reduced by an allowance for doubtful accounts.
Miscellaneous Revenues/Receivables - Miscellaneous revenues are recognized on a cash basis. Receivables for the miscellaneous items that are susceptible to accrual are recorded with offsetting reserves on the balance sheet of the Borough's Current Fund. GAAP requires such revenues to be recognized in the accounting period when they become susceptible to accrual (i.e., when they are both measurable and available).
Utility Revenues/Receivables - Utility charges are levied quarterly based upon a flat service charge and if applicable, au excess consumption or usage charge. Revenues from these sources are recognized on a cash basis. Receivables that are susceptible to accrual are recorded with offsetting reserves on the balance sheet of the Borough's water utility
. operating fund. GAAP requires such revenues to be recognized in the accounting period when they become susceptible to accrual, reduced by an allowance for doubtful accounts.
Grant and Similar Award Revenues/Receivables- Federal and State grants, entitlements or shared revenues received for purposes normally financed through the Current Fund are recognized when anticipated in tl1e Borough's budget. GAAP requires such revenues to be recognized as soon as all eligibility requirements imposed by the grantor or provider have been met.
Property Acquired for Taxes- Property acquired for taxes is recorded in the Current Fund at the assessed valuation when such property was acquired, and is fully reserved. GAAP requires such property to be recorded as a capital asset in the government-wide financial statements at fair value on the date of acquisition.
27
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Measurement Focus and Basis of Accounting (Continued)
Interfunds - Interfund receivables in the Current Fund are recorded with offsetting reserves, which are created by charges to operations. Income is recognized in the year the receivables are liquidated. Interfund receivables in the other funds are not offset by reserves. GAAP does not require the establishment of an offsetting reserve for interfunds and, therefore, does not recognize income in the year liquidated.
Appropriation Reserves -Appropriation reserves are recorded as liabilities and are available, until lapsed at the close of the succeeding year, to rrieet specific claims, commitments or contracts incurred during the preceding year. Lapsed appropriation reserves are recorded as additions to income. Appropriation reserves do not exist under GAAP.
Expenditures - 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 an encumbrance accounting system. Outstanding encumbrances at December 31, are reported as a cash liability in the financial statements. Unexpended or uncommitted appropriations, at December 31, are reported as expenditures through the establishment of appropriation reserves unless cancelled by the goveming body. GAAP requires expenditures to be recognized in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-tenn debt, as well as expenditures related to compensated absences and claims and judgements, which are recognized when due.
Encumbrances -Contractual orders outstanding at December 31, are reported as expenditures and liabilities through the establishment of an encumbrance payable. Encumbrances do not constitute expenditures or liabilities under GAAP.
Compensated Absences - Expenditures relating to obligations for unused vested accumulated vacation and sick leave are not recorded until paid; however, municipalities may establish and budget reserve funds subject to NJSA 40A:4-39 for the future payment of compensated absences. GAAP requires that the amount that would normally be liquidated with expendable available financial resources be recorded as an expenditure in the operating funds and the remaining obligations are recorded as a long-term obligation in the govemment-wide financial statements.
Incurred But Not Reported (IBNR) Reserves and Claims Payable - The Borough has not created a reserve for any potential unreported self-insurance losses which have taken place but in which the Borough has not received notices or report of losses (i.e. IBNR). Additionally, the Borough has not recorded a liability for those claims filed, but which have not been paid (i.e. claims payable). GAAP requires that the amount that would normally be liquidated with expendable available financial resources be recorded as an expenditure in the operating funds and the remaining potential claims are recorded as a long-term obligation in the government-wide financial statements.
Tax Appeals and Other Contingent Losses - Losses arising from tax appeals and other contingent losses are recognized at the time a decision is rendered by an administrative or judicial body; however, municipalities may establish reserves transferred from tax collections or by budget appropriation for future payments of tax appeal losses. GAAP requires such amounts to be recorded when it is probable that a loss has been incurred and the amount of such loss can be reasonably estimated.
28
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 1 SUMMARY OF SIGNiFICANT ACCOUNTING POLICIES (Continued)
D. Measurement Focus and Basis of Accounting (Continued)
General Fixed Assets- In accordance with NJAC 5:30-5.6, Accounting for Govermuental Fixed Assets, the Borough of Waldwick has developed a fixed assets accounting and reporting system. Fixed assets are defined by the Borough as assets with an initial, individual cost of$2,000 and an estimated useful life in excess of two years.
Fixed assets used in govermuental operations (general fixed assets) are accounted for in the General Fixed Assets Account Group. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than buildings, such as roads, bridges, curbs and gutters, streets and sidewalks and sewerage and drainage systems are not capitalized.
General Fixed Assets purchased after December 31, 1986 are stated at cost. Donated fixed assets are recorded at estimated fair market value at the date of donation.
General Fixed Assets purchased prior to December 31, 1986 are stated as follows:
Land and Buildings Machinery and Equipment
No depreciation has been provided for in the financial statements.
Assessed Value Replacement Cost
Expenditures for construction in progress are recorded in the General Capital Fund until such time as the construction is completed and put into operation for general fixed assets.
Accounting for utility fund "fixed capital" remains unchanged underNJAC 5:30-5.6.
Property and equipment purchased by the water utility fund are recorded in the capital account at cost and are adjusted for disposition and abandonment. The amounts shown do not purport to represent reproduction costs or current value. Contributions in aid of construction are not capitalized. The balance in the Reserve for Amortization and Deferred Reserve for Amortization accounts in the Utility Capital Fund represents charges to operations for the costs of acquisitions of property, equipment and improvements. The utility does not record depreciation on fixed assets.
GAAP requires that capital assets be recorded in proprietary-type funds as well as the government-wide financial statement at historical or estimated historical cost if actual historical cost is not available. In addition, GAAP requires depreciation on capital assets to be recorded in proprietary-type funds as well as in the government-wide financial statements.
Use of Estimates - The preparation of financial statements requires management of the Borough to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of accrued revenues and expenditures during the reporting period. Accordingly, actual results could differ from those estimates.
29
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 2 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgets aud Budgetary Accouutiug - Au annual budget is required to be adopted and inte1,>rated into the accounting system to provide budgetary control over revenues and expenditures. Budget amounts presented in the accompanying financial statements represent amounts adopted by the Borough and approved by the State Division of Local Government Services as per N.J.S.A. 40A:4 et seq.
The Borough is not required to adopt budgets for the following funds:
Trust Funds (Except Municipal Open Space Trust Fund) General Capital Fund Water Utility Capital Fund
The governing body is required to introduce and approve the annual budget no later than February I 0, of the fiscal year. The budget is required to be adopted no later than March 20, and prior to adoption must be certified by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. The Director of the Division of Local Government Services, with the approval of the Local Finance Board may extend the introduction and approval and adoption dates of the municipal budget. The budget is prepared by fund, function, activity and line item (salary or other expense) and includes information on the previous year. The legal level of control for appropriations is exercised at the individual line item level for all operating budgets adopted. The governing body of the municipality may authorize emergency appropriations and the inclusion of certain special items of revenue to the budget after its adoption and detennination of the tax rate. During the last two months of the fiscal year, the governing body may, by a 2/3 vote; amend the budget through line item transfers. Management has no authority to amend the budget without the approval of the governing body. Expenditures may not legally exceed budgeted appropriations at the line item level. During 2015 the Borough Council increased the original budget by $1,000. The increase was funded by additional aid allotted to the Borough. The Borough Council did not increase the original budget during 2016. In addition, the governing body approved several budget transfers during 2016 and 2015.
NOTE 3 CASH DEPOSITS AND INVESTMENTS
The Borough considers petty cash, change funds, cash in banks, certificates of deposit and deposits with the New Jersey Cash Management Fund as cash and cash equivalents.
A. Cash Deposits
The Borough's deposits are insured through either the Federal Deposit Insurance Corporation (FDIC), National Credit Union Share Insurance Fund (NCUSIF), Securities Investor Protection Corporation (SIPC) or New Jersey's Governmental Unit Deposit Protection Act (GUDPA). The Borough is required to deposit their funds in a depository which is protecting such funds pursuant to GUDPA. The New Jersey Governmental Unit Deposit Protection Act requires all banks doing business in the State of New Jersey to pledge collateral equal to at least 5% of the average amount of its public deposits and I 00% of the average amount of its public funds in excess of the lesser of 75% of its capital funds or $200 million for all deposits not covered by the FDIC.
30
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 3 DEPOSITS AND INVESTMENTS (Continued)
A. Cash Deposits (Continued)
Bank balances are insured up to $250,000 in the aggregate by the FDIC for each bank. NCUSlF insures credit union accounts up to $250,000 in the aggregate for each financial institution. SIPC replaces cash claims up to a maximum of $250,000 for each failed brokerage firm. At December 31,2016 and 2015, the book value of the Borough's deposits were $12,094,004 and $10,571,610 and bank and brokerage firm balances of the Borough's deposits amounted to $12,449,707 and $10,900,125, respectively. The Borough's deposits which are displayed on the various fund balance sheets as "cash" are categorized as:
Bank Balance Depository Account 2016 2015
Insured $ 11,598,167 $ 10,052,025
Uninsured and Collateralized 851 540 848 100
$ 12,449,707 $ 10,900,125
Custodial Credit Risk - Deposits - Custodial credit risk is the risk that in the event of a bank failure, the government's deposits may not be returned to it. The Borough does not have a formal policy for custodial credit risk. As of December 31,2016 and 2015, the Borough's bank balances of$851,540 and $848,100 were exposed to custodial credit risk as follows:
Uninsured and Collateralized:
Collateral held by pledging financial institution's trust department not in the Borough's name
B. Investments
$ 851,540 """$ ~~~8.;.48""''-'1 0;.;;.0
The Borough is permitted to invest public funds in accordance with the types of securities authorized by N.J.S.A. 40A:5-15.1. Investments include bonds or other obligations of the United States or obligations guaranteed by the United States of America, Government Money Market Mutual Funds, bonds or other obligations of the Borough or bonds or other obligations of the school districts which are a part of the Borough or school districts located within the Borough, Local Government investment pools, and agreements for the repurchase of fully collateralized securities, if transacted in accordance with NJSA 40A:5-15.1 (8a-8e ).
As of December 31, 2016 and 2015 the Borough had no outstanding investments.
Interest earned in the General Capital Fund, Animal Control Fund and certain Other Trust Funds are assigned to the Current Fund in accordance with the regulatory basis of accounting. Interest earned in the Water Utility Capital Fund is assigned to the Water Utility Operating Fund in accordance with the regulatory basis of accounting.
31
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 4 TAXES AND UTILITY CHARGES AND FEES RECEIVABLE
Receivables at December 31, 2016 consisted of the following:
Current
2016
Property Taxes $ 3 I 8,037
Tax Title Liens 1,690 Uti! ity Rents $
$ 319,727 $
Water Utility Total
$ 318,037 1,690
29,181 29, I 81
29,181 $ 348,908
In 2016, the Borough collected $276,561 and $35,918 from delinquent taxes and utility charges and fees, which represented I 00% of the delinquent tax and water charges receivable at December 3 I, 20 I 5.
Receivables at December 31, 2015 consisted of the following:
Water Current Utility Total
2015
Property Taxes $ 276,561 $ 276,561
Tax Title Liens 790 790 Utility Rents $ 35,918 35,918
$ 277,351 $ 35,918 $ 313,269
In 2015, the Borough collected $372,61 I and $37,762 from delinquent taxes and utility charges and fees, which represented 100% of the delinquent tax and water charges receivable at December 3 I, 2014.
32
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2016 AND 2015
NOTE 5 DUE TO/FROM OTHER FUNDS
As of December 31, interfund receivables and payables that resulted from various interfund transactions were as follows:
Current Fund
Trust Funds
Animal Control
Park and Ride Contingency
Other Trust
Unemployment Insurance Trust Fund
Self-Insurance Trust Fund
Municipal Open Space
General Capital Fund
Water Utility Operating Fund Water Utility Capital Fund
Total
$
$
Due from
Other Funds
88,981 $
652
254
70,664
6,025
Due to
Other Funds
290 $
4,649
75,722
70,628
15,287
166,576 $ 166,576 $
Due from
Other Funds
86,764 $
5,248
3,412
525
101,255
2,178 4,894
Due to
Other Funds
82,533
14
12,037
86,880
2,760
158
15,000
4,894
204,276 ;;;_$ ~_;;;2_;_04~,2;;,;,7,;;,6
The above balances are the result of expenditures being paid by one fund on behalf of another.
The Borough expects all interfund balances to be liquidated within one year.
33
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 6 FUND BALANCES APPROPRIATED
Under the regulatory basis of accounting, fund balances in the Current Fund and Water Utility Operating Fund are comprised of cash surplus (fund balance) and non-cash surplus (fund balance). All or part of cash surplus as of December 31 may be anticipated in the subsequent year's budget. The non-cash surplus portion of fund balance may be utilized in the subsequent yeru·' s budget with the prior written consent of the Director of the Division of Local Government Services if certain guidelines are met as to its availability. Fund balances at December 31, which were appropriated and included as anticipated revenue in their own respective fund's budget for the succeeding year were as follows:
Current Fund Cash Surplus Non-Cash Surplus
Water Utility Operating Fund
Fund Balance
December 3 1,
$ 5,569,860 59,104
$ 5,628,964
Cash Surplus "'$~~79~6~, 7"'9""0
2016 Utilized
in Subsequent Year's Budget
$ 935,000
$ 935,000
$
34
2015 Fund Utilized
Balance in Subsequent December 31, Year's Budget
$ 4,853,967 $ 923,000 57,841
$ 4,911,808 $ 923,000
$ 611,464 $
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 7 FIXED ASSETS
A. General Fixed Assets
The following is a summary of changes in the general fixed assets account group for the years ended December 31, 2016 and 2015.
35
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2016 AND 2015
NOTE 7 FIXED ASSETS (Continued)
B. Water Utility Fund Fixed Assets
The following is a summary of changes in the Water Utility Fund fixed assets for the years ended December 31, 2016 and 2015.
2016 Fixed Capital
System and System Improvements
Tanks, Pumping Station Structures
Vehicles and Equipment
2015 Fixed Capital
System and System Improvements
Tanks, Pumping Station Structures
Vehicles and Equipment
Balance
January 1,
2016
$ 3,559,475
3,027,568 1,982,788
Additions
$ 8,569,831 ;;;,$ ~~~
Balance
January 1,
2015 Additions
$ 3,517,658 $ 94,317
2,971,068 4,000
1,946,412 36,376
$ 8,435,138 $ 134,693
36
Reductions
$
Reductions
$
Balance,
December 3 1 ,
Adjustment 2016
$
Adjustment
$ (52,500)
52,500
$
$ 3,559,475
3,027,568
1,982,788
$ 8,569,831
Balance,
December 3 1 ,
2015
$ 3,559,475
3,027,568
1,982,788
$ 8,569,831
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTES MUNICIPALDEBT
The Local Bond Law governs the issuance of bonds and notes used to finance capital expenditures. General obligation bonds have been issued for both General Capital and Water Utility Capital fund projects. All bonds are retired in serial installments within the statutory period of usefulness. Bonds issued by the Borough are general obligation bonds, backed by the full faith and credit of the Borough. Bond anticipation notes, which are issued to temporarily finance capital projects, must be paid off within ten years and four months or retired by the issuance of bonds.
The Borough's debt is summarized as follows:
2016 2015
Issued General
Bonds, Loans and Notes $ 9,583,508 $ 10,009,831
Water Utility Bonds, Notes and Loans 2,317,736 2,538,631
Total Issued 11,901,244 12,548,462
Less Funds Temporarily Held to Pay Bonds and Notes 38,544 38,544
Net Debt Issued 11,862,700 12,509,918
Authorized But Not Issued
General Bonds and Notes 146,125 183,402
Water Utility Bonds and Notes 669 13,641
Net Bonds and Notes Issued and Anthorized But Not Issued $ 12,009,494 $ 12,706,961
37
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2016 AND 2015
NOTE 8 MUNICIPAL DEBT (Continued)
Statutory Net Debt
The statement of debt condition that follows is extracted from the Borough's Annual Debt Statement and indicates a statutory net debt of .63% and .67% at December 31, 2016 and 2015, respectively.
Gross Debt Deductions Net Debt
2016 General Debt $ 9,729,633 $ 34,536 $ 9,695,097
School Debt 3,625,000 3,625,000
Water Utility Debt 2,318,405 2,318,405
Total $ 15,673,038 $ 5,977,941 $ 9,695,097
2015 General Debt $ 10,193,233 $ 34,536 $ I 0,158,697
School Debt 4,165,000 4,165,000
Water Utility Debt 2,552,272 2,552,272
Total $ 16,910,505 $ 6,751,808 $ 10,158,697
Statutory Borrowing Power
The Borough's remaining borrowing power under N.J.S. 40A:2-6, as amended, at December 31, was as follows:
3-1/2% ofEqua1ized Valuation Basis (Municipal) Less: Net Debt
Remaining Borrowing Power
$
$
38
54,064,792 $ 9,695,097
53,187,430 10,158,697
44,3 69,69 5 :;;,.$ __ 4:;:;3~, 0:::;28::1., 7:.;;;3~3
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 8 MUNICIPAL DEBT (Continued)
A. Long-Term Debt
The Borough's long-term debt consisted of the following at December 31:
General Obligation Bonds
The Borough levies ad valorem taxes to pay debt service on general obligation bonds. General obligation bonds outstanding at December 31 are as follows:
$6,098,000, 2002 Bonds, due in an annual
installment of $438,000 through February, 2017, interest at 4.625%
$8,127,000,2008 Bonds, due in annual
installments of $750,000 to $802,000
through April, 2020, interest at various rates
$4,508,000, 2014 Bonds, due in annual installments of $290,000 to $420,000 through November, 2026, interest at various rates
General Intergovernmental Loans Payable
$
$
438,000 $ 873,000
3,152,000 3,877,000
4,023,000 4,298,000
7,613,000 ~$ ~~.;:.91,;;,0..;,;48~,0;;.;;0..;;.0
The Borough has entered into a loan agreement with the New Jersey Department of Environmental Protection and Energy for the financing relating to the Borough sanitary sewer infiltration and inflow reduction improvements. The Borough levies ad valorem taxes to pay debt service on general intergovernmental loans issued. General intergovernmental loans outstanding at December 31 are as follows:
$86,874, 2011 Fund Loan due in Semi-annual
installments of$1,589 to $3,178 through August 2029, .interest free
$86,874, 20 II Trust Loan due in Annual installments of $996 to $6,368 through August 2030, interest at 2.53% to 4.51%
$
$
39
59,860 $ 64,627
67,248 71,304
127, I 08 ~$ ~~~1;;.;;3 5;.,;,9;,;;3~1
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2016 AND 2015
NOTE 8 MUNICIPAL DEBT (Continued)
A. Long-Term Debt (Continued)
Water Utility Bonds
The Borough pledges revenue from operations to pay debt service on Water Utility bonds issued. The Water Utility bonds outstanding at December 31 are as follows:
$628,000, 2002 Bonds, due in an annual installment of $48,000 through
February 2017, interest at 4.625%
$1,144,000,2008 Bonds, due in annual
installments of $110,000 to $114,000
through April, 2020, interest at various rates
$564,000,2014 Bonds, due in annual
installments of $30,000 to $60,000 through November, 2026, interest at various rates
Water Utility Intergovernmental Loans Payable
$ 48,000 $ 98,000
444,000 554,000
__ _::_50::...4:.?.:, 0:..::0_::_0 5 34,000
~$ __ "'"99~6"',o""occo $ 1,186,000
The Borough has entered into a loan agreement with the New Jersey Environmental Infrastructure Trust for the financing relating to the water storage tank booster pump and water main construction projects. The Borough pledges revenue from operations to pay debt service on Water Utility intergovernmental loans issued. Water Utility intergovernmental loans outstandmg at December 31 are as follows:
$825,000, 2000 Fund Loan due in Semi-annual installments of$945 to $42,952 through
August 2018, interest free
$830,000, 2000 Trust Loan due in Semi-annual installments of $60,000 to $65,000 through
August 2018, interest at 4.50%
$566,508,2010 Fund Loan due in Semi-annual installments of$9,939 to $19,877 through
August 2030, interest free
$545,000, 2010 Trust Loan due in Annual installments of $20,000 to $45,000 through August 2030, interest at 5.00%
$
$
40
86,308 $ 127,087
125,000 180,000
417,428 447,244
445,000 465,000
1 '073 '73 6 ;:;_$ -~] •c::2,;.;19;.:;,3;;,;;3.,;.1
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 8 MUNICIPAL DEBT (Continued)
A. Long-Term Debt (Continued)
The Borough's principal and interest for long-term debt issued and outstanding as of December 31, 2016 is as follows:
Calendar General Bonds General Loans Water Utilit~ Bonds Water Utility Loans
Year Principal Interest Principal Interest Principal Interest Principal Interest Total
2017 $ 1,478,000 $ 193,605 $ 8,915 $ 2,548 $ 188,000 $ 25,631 $ 157,226 $ 27,875 $ 2,081,800
2018 1,200,000 151,020 9,020 2,443 140,000 20,140 163,713 23,925 1,710,261
2019 1,200,000 115,020 9,140' 2,323 150,000 15,690 54,816 19,750 1,566,739
2020 1,217,000 78,985 9,273 2,190 159,000 10,970 54,816 18,500 1,550,734
2021 420,000 56,650 9,421 2,042 60,000 8,075 54,816 17,250 628,254
2022-2026 2,098,000 150,950 49,835 7,479 299,000 21,475 309,081 64,750 3,000,570
2027-2030 31,504 1,808 279,268 20,750 333,330
$ 7,613,000 $ 746,230 $ 127,108 $ 20,833 $ 996,000 $ 101,981 $ 1,073,736 $ 192,800 $ 10,871,688
Changes in Long-Term Municipal Debt
The Borough's long-term capital debt activity for the years ended December 31, 2016 and 2015 were as follows:
General Capital Fund
Bonds Payable Intergovernmental Loans
General Capital Fund Long-Term Liabilities
Water Utility Capital Fund
Bonds Payable Intergovernmental Loans
Water Utility Capital Fund Long-Term Liabilities
Balance,
January I,
2016
$ 9,048,000 135,931
Additions
$ 9,183,931 """$~~~
$ 1,186,000 1,219,331
$ 2,405,331 """$ ~~~
41
Balance,
December 31,
Reductions 2016
$ 1,435,000 8,823
$ 7,613,000 127,108
Due
Within
One Year
$ 1,478,000 8,915
$ 1,443,823 $ 7,740,108 $ 1,486,915
$ 190,000 $ 145,595
996,000 1,073,736
$ 188,000 157,226
$ 335,595 $ 2,069, 736 $ 345,226
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 8 MUNICIPAL DEBT (Continued)
A. Long-Term Debt (Continued)
Changes in Long-Term Municipal Debt (Continued)
General Capital Fund Bonds Payable Intergovernmental Loans
Balance, January I,
2015
$ 10,388,000 155,984
Additions
General Capital Fund Long-Term Liabilities $10,543,984 "'"$~~~
Water Utility Capital Fund Bonds Payable Intergovernmental Loans
Water Utility Capital Fund Long-Term Liabilities
$ 1,376,000 1,366,525
$ 2,742,525 "'"$~~~~
42
Balance, December 31,
Reductions 2015
Due Within
One Year
$ 1,340,000 $ 9,048,000 $ 1,435,000 20,053 135,931 8,823
$ 1,360,053 $ 9,183,931 $ 1,443,823
$ 190,000 $ 1,186,000 $ 147,194 1,219,331
190,000 145,595
$ 337,194 $ 2,405,331 $ 335,595
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2016 AND 2015
NOTE 8 MUNICIPAL DEBT (Continued)
B. Short-Term Debt
The Borough's short-term debt activity for the years ended December 31, 2016 and 2015 was as follows:
Bond Anticipation Notes
Bond Antici[!ation Notes
Balance Balance,
Rate Maturity January I, Renewed/ Retired/ December 31,
~ Date 2016 Issued Redeemed 2016
General Capital Fund
Various Public Improvements &
Acquisitions 1.10% 7/28/2017 $ 825,900 $ 825,900 $ 825,900 $ 825,900
Various Public Improvements &
Acquisitions 0.95% 7/28/2017 1,017,500 1,017,500
Total General Capital Fund $ 825,900 $ 1,843,400 $ 825,900 $ 1,843,400
Water Utility Capital Fund
Various Public Improvements &
Acquisitions 1.10% 7/28/2017 $ 133,300 $ 133,300 $ 133,300 $ 133,300
Various Public Improvements &
Acquisitions 0.95% 7/28/2017 114,700 114,700
Total Water Capital Fund $ 133,300 $ 248,000 $ 133,300 $ 248,000
43
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 8 MUNICIPAL DEBT (Continued)
B. Short-Term Debt (Continued)
Bond Anticipation Notes (Continued)
Bond Anticipation Notes
Rate
tzhl General Capital Fund
Maturity
Date
Balance
January 1,
2015
Renewed/
Issued
Balance,
Retired/ December 31,
Redeemed 2015
Various Public Improvements &
Acquisitions 0.74% 7/29/2016 $ 2,552,000 $ 825,900 $ 2,552,000 $ 825,900
Various Public Jmpvts. and the Acq.
of New Additional or Repl. Equip.,
and a New Automotive V chicle.
Various Public Impvts. and the Acq.
of new Additional or Replacement
Equip., and a New Pumper Fire Engine
and a New Automotive Vehicle
Rehabilitation of Lindbergh Parkway
Total General Capital Fund
Water Utility Capital Fund
798,000 798,000
1,130,000 1,130,000
185,000 185,000
$ 4,665,000 $ 825,900 $ 4,665,000 $ 825,900
Various Public Improvements &
Acquisitions 0.74% 7/29/2016 $ 452,400 $ 133,300 $ 452,400 $ 133,300
Various Water System
Improvements
Total Water Capital Fund
112,000
$ 564,400 $
112,000
133,300 $ 564,400 ;;c$ ~-"13"'3"',3"'0.;;.0
The purpose of these short-term borrowings was to provide resources for capital construction, acquisitions or improvement projects and other purposes pennitted by State Local Bond Law NJSA 40A:2 et. seq. The amounts issued for governmental activities are accounted for in the General Capital Fund. The amounts issued for the water utility activities are accounted for in the Water Utility Capital Fund.
44
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 8 MUNICIPAL DEBT (Continued)
B. Short-Term Debt (Continued)
Bond Anticipation Notes (Continued)
State law requires that notes are to be issued for a period not exceeding one year and may be renewed from time to time for additional periods, none of which shall exceed one year. All bond anticipation notes, including renewals, shall mature and be paid not later tban the first day of the fifth month following the close of the tenth fiscal year following the date of the original notes. In addition any note renewed beyond the third anniversary date of the original note, requires one legally payable installment to be paid.
NOTE 9 CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS
As of December 31, tbe Borough had the following commitments witb respect to an unfinished capital project and another significant commitment.
Capital Project
Purchase of2017 Ford Vehicle
Replacements of ADA Curb Cuts Along Crescent Ave
NOTE 10 OTHER LONG-TERM LIABILITIES
A. Compensated Absences
Construction Commitment
$ 55,488
$ J 19,316
Estimated Date of
Completion
2017
2016
Under the existing policies and labor agreements of the Borough, employees are allowed to accumulate (witb certain restrictions) unused vacation benefits, personal and sick leave over the life of their working careers and to redeem such unused leave time in cash (with certain limitations) upon death, retirement or by extended absence immediately preceding retirement.
It is estimated that the current cost of such unpaid compensation and salary related payments would approximate $882,645 and $884,534 at December 31, 2016 and 2015, respectively. These amounts which is are considered material to tbe financial statements, are not reported either as an expenditure or liability.
45
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 10 OTHER LONG-TERM LIABILITIES (Continued)
B. Capital Lease Agreement
The Borough entered into an agreement for the leasing of two vehicles. The capital lease agreement is for terms of 2 years payable in advance. The following is a schedule of the future minimum lease payments under capital leases, and the present value of the net minimum lease payments at December 31, 2016.
Year Ended December 31,
2017
Less: Amounts Representing Interest
Present Value of Net Minimum Lease Payments
Amount
$ 30,272
2,099
$ 28,173
The Borough's capital1ease activity as of December 31 was as follows:
Additions Reductions
Balance, December 31
Due Within One Year
46
$ 58,445 30,272
$ 28,173
$ 28 173
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2016 AND 2015
NOTE 10 OTHER LONG-TERM LIABILITIES (Continued)
Changes in Other Long-Term Liabilities
2016
Compensated Absences
Capital Leases Net Pension Liability
PERS PFRS
Total Other Long-Term Liabilities
2015
Compensated Absences
Capital Leases Net Pension Liability
PERS PFRS
Total Other Long-Term Liabilities
$
Balaoce,
January I, 2016
884,534
8,662,799 9,477,718
$ 19,025,051
Balance,
January I, 2015
$ 954,475 10,887
6,794,923 7,761,818
$ 15,522,103
Additions
$ 58,445
3,322,827 2,369,092
$ 5,750,364
Additions
$ 2,199,651 2,178,420
$ 4,378,071
47
Balance, Decem her 3 I ,
Reductions 2016
$ 1,889 $ 882,645
30,272 28,173
349,047 11,636,579 484,950 11,361,860
$ 866,158 $ 23,909,257
Balaoce, December 31,
Reductions 2015
$ 69,941 $ 884,534
10,887
331,775 8,662,799 462,520 9,477,718
$ 875,123 $ 19,025,051
$
$
$
Due
Within One Year
28,173
28,173
Due Within
One Year
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 11 EMPLOYEE RETIREMENT SYSTEMS
The State of New Jersey sponsors and administers the following contributory defined benefit public employee retirement systems (retirement systems) covering substantially all state and local government employees which includes those Borough employees who are eligible for pension coverage.
Police and Firemen's Retirement System (PFRS)- established in July 1944, under the provisions of N.J.S.A. 43: 16A to provide coverage to substantially all full time county and municipal police or firemen and State firemen appointed after December 31, 1944. Membership is mandatory for such employees with vesting occurring after 10 years of membership. PFRS is a cost-sharing multi-employer defined benefit pension plan.
Public Employees' Retirement System (PERS) - established in January 1955, under the provisions of N.J.S.A. 43: 15A to provide coverage, including post-retirement health care for those eligible employees whose local employers elected to do so, to substantially all full-time employees of the State or any county, municipality, school district, or public agency provided the employee is not a member of another State-administered retirement system. Membership is mandatory for such employees and vesting occurs after 1 0 years of service for pension benefits and, if applicable, 25 years for post-retirement healthcare coverage. PERS is a cost-sharing multi-employer defined benefit pension plan.
The State of New Jersey sponsors and administers the following defined contribution public employee retirement program covering certain state and local government employees which include those Borough employees who are eligible for pension coverage.
Defined Contribution Retirement Program (DCRP)- established under the provisions of Chapter 92, P.L. 2007 and Chapter 103, P.L. 2008 to provide coverage to elected and certain appointed officials, effective July 1, 2007. Membership is mandatory for such individuals with vesting occurring after one (1) year of membership. This provision was extended by Chapter l, P.L. 2010, effective May 21,2010, to new employees (Tier 2) of the PFRS and new employees who would otherwise be eligible to participate in PERS and do not work the minimum required hours but earn a base salary of at least $5,000 are eligible for participation in the DCRP. DCRP is a defined contribution pension plan.
Other Pension Funds
The state established and administers a Supplemental Annuity Collective Trust Fund (SACT) which is available to active members of the State-administered retirement systems to purchase annuities to supplement the guaranteed benefits provided by their retirement system. The state or local governmental employers do not appropriate funds to SACT.
The State also administers the Pensions Adjustment Fund (PAF). Prior to the adoption of pension reform legislation, P.L. 2011, C.78, it provided cost of living increases equal to 60 percent of the change in the average consumer price index, to eligible retirees in some State-sponsored pension systems which includes the CPFPF. Cost-of-living increases provided under the State's pension adjustment program are currently suspended as a result of the reform legislation. This benefit is funded by the State as benefit allowances become payable.
The cost of living increase for PFRS and PERS are funded directly by each of the respective systems, but are currently suspended as a result of reform legislation.
According to state law, all obligations of each retirement system will be assumed by the State of New Jersey should any retirement system be terminated.
48
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 11 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Other Pension Funds (Continued)
The State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, issues publicly available financial reports that include the financial statements and required supplementary information of each of the above systems, funds, and trust. The financial reports may be accessed via the New Jersey, Division of Pensions and Benefits website at www.state.nj.us/treasm:y/pensions.
Basis of Accounting
The financial statements of the retirement systems are prepared on the accrual basis of accounting. Employer contributions are recognized when payable to the retirement systems. Benefits and refunds are recognized when due and payable in accordance with the terms of the retirement systems.
Investment Valuation
Investments are reported at fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. Mortgages are valued on the basis of future principal and interest payments, and are discounted at prevailing interest rates for similar instruments. The fair value of real estate investments is based on independent appraisals. Investments that do not have an established market are reported at estimated fair values.
The State of New Jersey, Department of the Treasury, Division of Investment, issues publicly available financial reports that include the financial statements of the State of New Jersey Cash Management Fund. The financial report may be obtained by writing to the State of New Jersey, Department of the Treasury, Division of Investment, P.O. Box 290, Trenton, New Jersey 08625-0290, or at www.state.nj/treasury/doinvest.
Funded Status and Funding Progress
As of July 1, 2015, the most recent actuarial valuation date, which was rolled forward to June 30,2016, the aggregate funded ratio for all the State administered retirement systems, including CPFPF, local PERS and local PFRS is 45.7 percent with an unfunded actuarial accrued liability of $50.3 billion. The CPFPF system is 19.15 percent funded with an unfunded actuarial accrued liability of $8.0 million. The aggregate funded ratio and unfunded accrued liability for the local PERS system is 40.14 percent and $29.6 billion, respectively and the aggregate funded ratio and unfunded accrued liability for local PFRS is 52.01 percent and $20.7 billion, respectively.
The funded status and funding progress of the retirement systems includes actuarial valuations which involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. These amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the probability of future events.
Actuarial calculations reflect a long-term perspective and are based on the benefits provided under the terms of the retirement systems in effect at the time of each valuation and also consider the pattern of the sharing of costs between the employer and members at that point in time. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and members in the future.
49
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 11 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Actuarial Methods and Assumptions
In the July I, 2015 actuarial valuations, the date of the most recent actuarial valuations, the projected unit credit was used as actuarial cost method, and the five year average of market value was used as asset valuation method for pension trust funds. The actuarial assumptions included (a) 7.65% for investment rate of return for all the retirement systems except CPFPF ( 2.85%) and (b) changes to projected salary increases applied through the year 2026 of 1.65-5.15 percent based on age for PERS and 2.10-9.98 percent based on age for PFRS.
Employer and Employee Pension Contributions
The contribution policy is set by laws of the State of New Jersey and contributions are required by active members and participating employers. Plan members and employer contributions may be amended by State of New Jersey legislation, with the amount of contributions by the State of New Jersey contingent upon the annual Appropriations Act. As defined, the various retirement systems require employee contributions based on 10.0% for PFRS, 7.06% for PERS and 5.50% for DCRP of employee's annual compensation for fiscal year 2016.
Annual Pension Cost (APC)
Per the requirements of GASB Statement No. 27, Accounting for Pensions by State and Local Government Employees, for the years ended December 31, 2016 and 2015 for CPFPF, which is a cost sharing plan with special funding situations, the annual pension cost differs from the annual required contribution. For PFRS and PERS, which are cost sharing multi-employer defined benefit pension plans, annual pension cost equals contributions made. In the DCRP, which is a defined contribution plan, member contributions are matched by a 3% employer contribution.
During the years ended December 31, 2016, 2015 and 2014, the Borough, was required to contribute for normal cost pension contributions, accrued liability pension contributions and non-contributory life insurance premiums, the following amounts which equaled the required contributions for each respective year:
Year Ended December 31 PFRS PERS DCRP
2016 $ 462,520 $ 331,775 $ 1,178 2015 473,931 299,189 365 2014 446,194 290,735 1,042
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
Public Employees Retirement System (PERS)
At December 31, 2016 and 2015, the Borough reported a liability of $11,636,579 and $8,662,799, respectively, for its proportionate share of the PERS net pension liability. The net pension liability was measured as of June 30, 2016 and 2015, respectively, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2015 and 2014, respectively. The Borough's proportionate share of the net pension liability was based on a projection of the Borough's long-term share of contributions to the pension plan relative to the projected contributions of all participating governmental entities, actuarially determined. As of the measurement date of June 30,2016, the Borough's proportionate share was .03929 percent, which was an increase of .00070 percent from its proportionate share measured as of June 30, 2015 of .03859 percent.
50
BOROUGH OF WALDWICK NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 11 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Public Employees Retirement System (PERS) (Continued)
For the year ended December 31, 201 6 and 201 5, the pension system has determined the Borough's pension expense to be $1,145,196 and $577,562, respectively, for PERS based on the actuarial valuation which is less than the actual contributions reported in the Borough's financial statements of $331,775 and $299,189, respectively. At December 31, 2016 and 2015, the Borough's deferred outflows of resources and deferred inflows of resources related to PERS pension which are not reported on the Borough's financial statements are from the following sources:
2016 2015
Deferred Deferred Deferred Deferred Outflows Inflows Outflows Inflows
of Resources of Resources of Resources of Resources
Difference Between Expected and Actual Experience $ 216,405 $ 206,664
Changes of Assumptions 2,410,478 930,315 Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 443,713 $ 139,281 Changes in Proportion and Differences Between
Borough Contributions and Proportionate Share of Contributions 401,705 $ 234,120 365,050 302,178
Total $ 3,472,301 $ 234,120 $ 1,502,029 $ 441,459
At December 31, 2016 the amounts reported as deferred outflows of resources and deferred inflows of resources related toPERS pension will be recognized in pension expense as follows:
Year Ending
December 31, Total
2017 $ 727,269
2018 727,269 2019 828,504 2020 724,754 2021 230,385
Thereafter
$ 3,238,181
51
BOROUGH OF WALDWICK NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 11 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Public Employees Retirement System (PERS) (Continued)
Actuarial Assumptions
The Borough's total pension liability reported for the year ended December 31, 2016 was based on the June 30, 2016 measurement date as determined by an actuarial valuation as of July I, 2015, which was rolled forward to June 30, 2016. The total pension liability reported for the year ended December 31, 2015 was based on the June 30, 2015 measurement date as determined by an actuarial valuation as of July I, 2014, which was rolled forward to June 30, 2015. This actuarial valuation used the following actuarial assumptions, applied to all periods in the measurement date:
2016 2015
Inflation Rate 3.08% 3.04%
Salary Increases: 2012-2021 2.15-4.40%
Based on Age Through 2026 1.65-4.15%
Based on Age
Thereafter 2.65-5.15% 3.15-5.40% Based on Age Based on Age
Investment Rate of Return 7.65% 7.90%
Mortality Rate Table RP-2000 RP-2000
Assumptions for mortality improvements are based on Society of Actuaries Scale AA.
The actuarial assumptions used in the July I, 2015 valuation were based on the results of an actuarial experience study for the period July I, 2011 to June 30,2014. The actuarial assumptions used in the July I, 2014 valuation were based on the results of an actuarial study for the period July I, 2008 to June 30, 2011.
52
BOROUGH OF WALDWICK NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 11 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Public Employees Retirement System (PERS) (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rate of return (expected returns, net of pension plans investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plans' target asset allocation as of June 30, 2016 and 2015, as reported for the years ended December 31, 2016 and 2015, respectively, are summarized in the following table:
2016 Long-Term
Target Expected Real Target
Asset Class Allocation Rate of Return Allocation
Cash 5.00% 0.87% 5.00% U.S. Treasuries 1.50% 1.74% 1.75% Investment Grade Credit 8.00% 1.79% 10.00%
Mortgages 2.00% 1.67% 2.10%
High Yield Bonds 2.00% 4.56% 2.00% Inflation-Indexed Bonds 1.50% 3.44% 1.50%
Broad US Equities 26.00% 8.53% 27.25% Developed Foreign Equities 13.25% 6.83% 12.00% Emerging Market Equities 6.50% 9.95% 6.40% Private Equity 9.00% 12.40% 9.25% Hedge Funds/ Absolute Return 12.50% 4.68% 12.00%
Real Estate (Property) 2.00% 6.91% 2.00% Commodities 0.50% 5.45% 1.00%
Global Debt ex US 5.00% -0.25% 3.50% REIT 5.25% 5.63% 4.25%
Discount Rate
The discount rate used to measure the total pension liabilities of the PERS plan was as follows:
2016 2015
Measurement Date
June 30, 2016 June 30,2015
Discount Rate
3.98% 4.90%
53
2015 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%
BOROUGH OF WALDWICK NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 11 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Public Employees Retirement System (PERS) (Continued)
Discount Rate (Continued)
The following table represents the crossover period, if applicable, for the PERS defmed benefit plan: Period of Projected Benefit
Payments for which the Following Rates were Applied:
Long-Term Expected Rate of Return
Municipal Bond Rate *
Through June 30, 2034
From July I, 2034 and Thereafter
*The municipal bond return rate used is 2.85% and 3.80% as of the measurement dates of June 30, 2016 and 2015, respectively. The source is 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.
Sensitivity of Net Pension Liability
The following presents the Borough's proportionate share of the PERS net pension liability as of December 31, 2016 and 2015 calculated using the discount rate of 3.98% and 4.90%, respectively, as well as what the Borough's proportionate share of the PERS net pension liability would be if it were calculated using a discount rate that is !percentage-point lower (2.98% and 3.90%, respectively) or !-percentage-point higher (4.98% and 5.90%, respectively) than the current rate:
1% Current 1% Decrease Discount Rate Increase (2.98%) (3.98%) (4.98%)
2016 Borough's Proportionate Share of
the PERS Net Pension Liability $ 14,259,269 $ 11,636,579 $ 9,471,321
1% Current 1% Decrease Discount Rate Increase (3.90%) (4.90%) (5.90%)
2015 Borough's Proportionate Share of
the PERS Net Pension Liability $ 10,766,799 $ 8,662,799 $ 6,898,820
The sensitivity analysis was based on the proportionate share of the Borough's net pension liability at December 31, 2016 and 2015. A sensitivity analysis specific to the Borough's net pension liability was not provided by the pension system.
54
BOROUGH OF WALDWICK NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 11 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
Public Employees Retirement System (PERS) (Continued)
Pension Plan Fiduciary Net Position
Detailed information about the PERS pension plan's fiduciary net position is available in the separately issued financial report from the State of New Jersey, Department of the Treasury, Division of Pension and Benefits. report may be accessed via the New Jersey, Division of Pensions and Benefits, www .state.nj. us/treasury/pensions.
Police and Firemen's Retirement System (PFRS)
The financial website at
At December 31, 2016 and 2015, the Borough reported a liability of $11,361,860 and $9,477,718, respectively, for its proportionate share of the PFRS net pension liability. The net pension liability was measured as of June 30,2016 and 2015, respectively, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July I, 2015 and 2014, respectively. The Borough's proportionate share of the net pension liability was based on a projection of the Borough's long-term share of contributions to the pension plan relative to the projected contributions of all participating governmental entities, actuarially determined. As of the measurement date of June 30, 2016, the Borough's proportionate share was .05948 percent, which was an increase of .00258 percent from its proportionate share measured as ofJune 30, 2015 of .05690 percent.
For the years ended December 31, 2016 and 2015, the pension system has determined the Borough pension expense to be $1,177,222 and $714,621, respectively, for PFRS based on the actuarial valuation which is more than the actual contributions reported in the Borough's financial statements of $462,520 and $473,931, respectively. At December 31, 2016 and 2015, the Borough's deferred outflows of resources and deferred inflows of resources related to PFRS pension which are not reported on the Borough's financial statements are from the following sources:
2016 2015
Deferred Deferred Deferred Deferred Outflows Inflows Outflows Inflows
of Resources of Resources of Resources of Resources
Difference Between Expected and Actual Experience $ 74,479 $ 81,748
Changes of Assumptions $ 1,573,711 $ 1,749,822 Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 796,103 164,951 Changes in Proportion and Differences Between Borough Contributions and Proportionate Share of Contributions 338,045 410,563 54,694 526,870
Total $ 2,707,859 $ 485,042 $ 1,804,516 $ 773,569
55
BOROUGH OF WALDWICK NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2016 AND 2015
NOTE 14 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Police and Firemen's Retirement System (PFRS) (Continued)
At December 31, 201 6 the amounts reported as deferred outflows of resources and deferred inflows of resources related to PFRS pension will be recognized in pension expense as follows:
Year
Ending December 31,
2017
2018 2019 2020
2021 Thereafter
Actuarial Assumptions
Total
$ 505,596
505,596 703,613 444,651
63,361
$ 2,222,817
The Borough's total pension liability reported for the year ended December 31, 2016 was based on the June 30, 2016 measurement date as determined by an actuarial valuation as of July 1, 2015, which was rolled forward to June 30, 2016. The total pension liability reported for the year ended December 31, 2015 was based on the June 30, 2015 measurement date as determined by an actuarial valuation as of July 1, 2014, which was rolled forward to June 30, 2015. This actuarial valuation used the following actuarial assumptions, applied to all periods in the measurement date:
2016 2015
Inflation Rate 3.08% 3.04% Salary Increases: 2012-2021 2.60-9.48%
Based on Age Through 2026 2.10-8.98%
Based on Age
Thereafter 3.10-9.98% 3.60-10.48% Based on Age Based on Age
Investment Rate of Return 7.65% 7.90%
Mortality Rate Table RP-2000 RP-2000
Assumptions for mortality improvements are based on Society of Actuaries Scale AA and one year using Scale BB.
The actuarial assumptions used in the July I, 2015 and July I, 2014 valuations were based on tbe results of an actuarial experience study for tbe period July I, 2010 to June 30, 2013.
56
BOROUGH OF WALDWICK NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2016 AND 2015
NOTE 11 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Police and Firemen's Retirement System (PFRS) (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rate of return (expected returns, net of pension plans investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plans' target asset allocation as of June 30,2016 and 2015, as reported for the years ended December 31, 2016 and 2015, respectively, are summarized in the following table:
2016 Long-Term
Target Expected Real Target Asset Class Allocation Rate of Return Allocation
Cash 5.00% 0.87% 5.00% U.S. Treasuries 1.50% 1.74% 1.75% Investment Grade Credit 8.00% 1.79% 10.00% Mortgages 2.00% 1.67% 2.10% High Yield Bonds 2.00% 4.56% 2.00% Inflation-Indexed Bonds 1.50% 3.44% 1.50% Broad US Equities 26.00% 8.53% 27.25% Developed Foreign Equities 13.25% 6.83% 12.00% Emerging Market Equities 6.50% 9.95% 6.40% Private Equity 9.00% 12.40% 9.25% Hedge Funds/ Absolute Return 12.50% 4.68% 12.00% Real Estate (Property) 2.00% 6.91% 2.00% Commodities 0.50% 5.45% 1.00%
Global Debt ex US 5.00% -0.25% 3.50% REIT 5.25% 5.63% 4.25%
Discount Rate
The discount rate used to measure the total pension liabilities of the PFRS plan was as follows:
2016 2015
Measurement Date
June 30,2016 June 30, 2015
Discount Rate
5.55% 5.79%
57
2015 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%
BOROUGH OF WALDWICK NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2016 AND 2015
NOTE 11 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Police and Firemen's Retirement System (PFRS) (Continued)
Discount Rate (Continued)
The following table represents the crossover period, if applicable, for the PFRS defmed benefit plan: Period of Projected Benefit Payments for which the Following Rates were Applied: Long-Term Expected Rate of Return
Municipal Bond Rate *
Through June 30, 2050
From July I, 2050 and Thereafter
*The municipal bond return rate used is 2.85% and 3.80% as of the measurement dates of June 30, 2016 and 2015, respectively. The source is 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.
Sensitivity of Net Pension Liability
The following presents the Borough's proportionate share of the PFRS net pension liability as of December 31, 2016 and 2015 calculated using the discount rate of 5.55% and 5.79%, respectively, as well as what the Borough's proportionate share of the PFRS net pension liability would be if it were calculated using a discount rate that is !percentage-point lower (4.55% and 4.79%, respectively) or !-percentage-point higher (6.55% and 6.79%, respectively) than the current rate:
1% Current 1% Decrease Discount Rate Increase (4.55%} (5.55%} (6.55%}
2016 Borough's Proportionate Share of
the PFRS Net Pension Liability $ 14,650,285 $ 11,361,860 $ 8,680,347
1% Current 1% Decrease Discount Rate Increase (4.79%} (5.79%} (6.79%}
2015 Borough's Proportionate Share of
the PFRS Net Pension Liability $ 12,494,641 $ 9,477,718 $ 7,017,687
The sensitivity analysis was based on the proportionate share of the Borough's net pension liability at December 31, 2016 and 2015. A sensitivity analysis specific to the Borough's net pension liability was not provided by the pension system.
58
BOROUGH OF WALDWICK NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2016 AND 2015
NOTE 11 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Police and Firemen's Retirement System (PFRS) (Continued)
Special Funding Situation- PFRS
Under N.J.S.A. 43:16A-15, the Borough is responsible for their own PFRS contributions based on actuarially determined amounts, except where legislation was passed which legally obligated the State to make contributions if certain circumstances occurred. The legislation which legally obligates the State is as follows: Chapter 8, P.L. 2000, Chapter 318, P.L. 2001, Chapter 86, P.L. 2001, Chapter 511, P.L. 1991, Chapter 109, P.L. 1979, Chapter 247, P.L. 1993 and Chapter 201, P.L. 2001. The amounts contributed on behalf of the Borough by the State under this legislation is considered to be a special funding situation as defined by GASB Statement No. 68 and the State is treated as a nonemployer contributing entity. Accordingly, the Borough's proportionate share percentage determined under GASB Statement No. 68 is zero percent and the State's proportionate share is I 00% for PFRS under this legislation.
At December 31, 2016 and 2015, the State's proportionate share of the net pension liability attributable to the Borough for the PFRS special funding situation is $954,114 and $831,164, respectively. For the years ended December 31, 2016 and 2015, the pension system has determined the State's proportionate share of the pension expense attributable to the Borough for the PFRS special funding situation is $121,863 and $103,676, respectively, which is more than the actual contributions the State made on behalf of the Borough of $36,559 and $43,266, respectively. The State's proportionate share attributable to the Borough was developed based on actual contributions made to PFRS allocated to employers based upon covered payroll. These on-behalf contributions have not been reported on the Borough's financial statements.
Pension Plan Fiduciary Net Position
Detailed information about the PFRS pension plan's fiduciary net position is available in the separately issued financial report from the State of New Jersey, Department of the Treasury, Division of Pension and Benefits. The financial reports may be accessed via the New Jersey, Division of Pensions and Benefits, website at www .state .nj. us/treasury/pensions.
NOTE 12 POST-RETIREMENT MEDICAL BENEFITS
The Borough currently does not provide post-retirement medical benefits to their active or retired employees.
NOTE 13 RISK MANAGEMENT
The Borough is exposed to various risks ofloss related to general liability, automobile coverage, theft of, damage to and destruction of assets; errors and omissions; injuries to employees; termination of employees and natural disasters. The Borough has obtained commercial insurance coverage to guard against these events to minimize the exposure to the Borough should they occur.
59
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2016 AND 2015
NOTE 13 RISK MANAGEMENT (Continued)
The Borough has established a Self-Insurance Trust Fund for the purpose of funding non-reimbursable property, plant and equipment claims as well as the deductible portion of the claims. As of December 31, 2016 and 2015 the Borough has available in the Self-Insurance Trust Fund $134,388 and $147,875, respectively for the payment of self-insurance claims.
The Borough of Waldwick is a member of the Bergen County Municipal Joint Insurance Fund (BJIF) and Municipal Excess Liability Joint Insurance Fund (MEL). The joint insurance funds are both an insured and self-administered group of municipalities established for the purpose of insuring against property damage, general liability, motor vehicles and equipment liability and worker's compensation. The Funds are risk-sharing public entity pools. The BJIF and MEL coverage amounts are on file with the Borough.
The relationship between the Borough and respective insurance funds is governed by a contract and by-laws that have been adopted by resolution of each unit's governing body. The Borough is contractually obligated to make all annual and supplementary contributions to the insurance funds, to report claims on a timely basis, to cooperate with the management of the funds, its claims administrator and attorneys in claims investigation and settlement, and to follow risk management procedures as outlined by the funds. Members have a contractual obligation to fund any deficit of the funds attributable to a membership year during which the municipality was a member.
The funds provide its members with risk management services, including the defense of and settlement of claims, and established reasonable and necessary loss reduction and prevention procedures to be followed by the members. Complete financial statements of the funds can be obtained by contacting the respective fund's Treasurer.
There has been no significant reduction in insurance coverage from the previous year nor have there been any settlements in excess of insurance coverage in any of the prior three years.
The Borough has elected to fund its New Jersey Unemployment Compensation Insurance under the "Benefit Reimbursement Method". Under this plan the Borough is required to reimburse the New Jersey Unemployment Trust Fund for benefits paid to its former employees and charged to its account with the State. The Borough is billed quarterly for amounts due to the State. The following is a summary of Borough contributions, employee contributions, reimbursements to the State for benefits paid and the ending balance of the Borough's unemployment compensation trust fund for the current and previous two years:
Year Ended December 31
2016 2015 2014
Employee Contributions
$ 6,565 10,404 10,069
Employer Contributions
$ 17,500
60
Amount Reimbursed
$ 5,903 18,926 18,220
$
Ending Balance
69,022 68,360 76,81 1
BOROUGH OF WALDWICK NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 14 CONTINGENT LIABILITIES
The Borough is a party defendant in some lawsuits, none of a kind unusual for a municipality of its size and scope of operation. In the opinion of the Borough's Attorney, the potential claims against the Borough not covered by insurance policies would not materially affect the financial condition of the Borough.
Pending Tax Appeals- Various tax appeal cases were pending in the New Jersey Tax Comt at December 31,2016 and 2015. Amounts claimed have not yet been determined. The Borough is vigorously defending its assessments in each case. Under the accounting principles prescribed by the Division of Local Government Services, Depmtment of community Affairs, State of New Jersey, the Borough docs not recognize a liability, if any, until these cases have been adjudicated. The Borough expects such amounts, if any, could be material. As of December 31,2016 and 2015, the Borough reserved $413,662 in the Current Fund for tax appeals pending in the New Jersey Tax Comt. Funding of any ultimate liability would be provided for in succeeding years' budget or from fund balance.
Federal and State Awards - The Borough participates in a number of federal and state programs that are fully or partially funded by grants received from other goverrnnental units. Expenditures financed by grants are subject to audit by the appropriate grantor government. If expenditures are disallowed due to noncompliance with grant program regulations, the Borough may be required to reimburse the grantor government. As of December 31,2016 and 2015, significant amounts of grant expenditure have not been audited by the various grantor agencies but the Borough believes that disallowed expenditures, if any, based on subsequent audits will not have a material effect on the overall financial position of the Borough.
NOTE 15 FEDERAL ARBITRAGE REGULATIONS
The Borough is subject to Section 148 of the Internal Revenue Code as it pertains to the arbitrage rebate on all taxexempt obligations, both long and short-term debt. Under the 1986 Tax Reform Act, the Internal Revenue Service (IRS) required that all excess earnings from investment proceeds be rebated to the IRS. Arbitrage, for purposes of these regulations, is defined as the difference between the yield on the investment and the yield on the obligations issued. If there are excess earnings, this amount may be required to be rebated to the IRS. At December 31, 2016 and 2015, the Borough has not estimated its estimated arbitrage earnings due to the IRS, if any.
NOTE 16 SUBSEQUENT EVENTS
Debt Authorized
On February 14, 2017 the Borough adopted a Bond Ordinance authorizing the issuance $756,800 in Bonds or Bond Anticipation Notes to fund certain general capital projects and a Bond Ordinance authorizing the issuance of $103,880 in Bonds on Bond Anticipation Note to fund certain water capital projects. As of the date of this report the Borough has not issued nor awarded the sale of said bonds or notes.
61
SUPPLEMENTARY SCHEDULES
CURRENT FUND
BOROUGH OF WALDWICK STATEMENT OF CURRENT CASH- COLLECTOR-TREASURER
Balance, January 1, 2016
Increased by Receipts: Revenue Accounts Receivable Non-Budget Revenue Senior Citizens' and Veterans' Deductions - Due from State of NJ Taxes Receivable Grants Receivable Receipts from Animal Control Trust Fund Receipts for Park and Ride Contingency Fund Receipts from Other Trust Fund Receipts from Self Insurance Trust Fund Receipts for General Capital Fund Tax Overpayments Prepaid Taxes Miscellaneous Reserves Public and Private Programs -Unappropriated Reserves Construction Code Fees Payable Sales Tax Payable
Decreased by Disbursements: 2016 Budget Appropriations 2015 Appropriation Reserves Accounts Payable Public and Private Programs- Appropriated Reserves Tax Overpayments County Taxes Payable Local District School Taxes Payable Payments to Park and Ride Contingency Fund Payments to Municipal Open Space Trust Fund Payments to General Capital Fund Construction Code Fees Payable Sales Tax Payable
Balance, December 31, 20 I 6
62
$ 3,962,434 181,288 104,179
40,642,648 18,093
42 4,658
13,300 354
1,650 42,824
182,106 25,659 II ,824 22,256
3,942
11,828,923 56,918
232,897 1,420
49,548 3,824,586
28,357,374 14,555 79,228 98,101 19,305 3,075
EXHIBIT A-4
$ 6,812,280
45,217,257
52,029,537
44,565,930
$ 7,463,607
Office
Collector-Treasurer Municipal Court Municipal Clerk Swimming Pool
BOROUGH OF WALDWICK STATEMENT OF CHANGE FUNDS
$
$
Balance, January 1,
2016
850 125 50 50
1,075
STATEMENT OF DUE FROM STATE OF NEW JERSEY SENIOR CITIZENS' AND VETERANS' DEDUCTIONS
Balance, January I, 2016
Increased by: Senior Citizens' Deductions Per Tax Billings Veterans' Deductions Per Tax Billings Senior Citizens' Deductions Allowed by Tax Collector Veterans' Deductions Allowed by Tax Collector
Decreased by: Cash Received from State of New Jersey Senior CitizensN eterans' Deductions Disallowed by Tax Collector-20 16 Senior Citizens/Veterans' Deductions Disallowed by Tax Collector-2015
Balance, December 31, 2016
63
$ 19,250 91,500
2,799 250
104,179 1,573 7,114
EXHIBIT A-5
Balance, December 31,
2016
$ 850 125 50 50
$ 1,075
EXHIBIT A-6
$ 38,179
113,799
151,978
112,866
$ 39,112
Year
Balance, January 1,
2016 2016 Levy
BOROUGH OF WALDWICK STATEMENT OF TAXES RECEIVABLE
Added Taxes
Senior Citizens'
and Veterans'
Deductions Disallowed
Cash Collections 2015 2016
Senior Citizens'
and Veterans'
Deductions Allowed Cancelled
Transferred To Tax
Title Liens
EXHIBIT A-7
Balance, December 31,
2016
2015 2016
$ 276~61 $ 5,905 $ 7,114 1,573 $
$ 288,538 $ 720 $ 322 $ 41,089,028 266,358 40,354,110 $ 113,799 $ 38,439 180 317,715
$ 276,561 $ 41,089,028 $ 5,905 $ 8,687 $ 266,358 $ 40,642,648 $ 113,799 $ 38,439 $ 900 $ 318,037
Tax Yield General Purpose Tax Added Taxes (54:4-63.1 et seq.)
Tax Levy Local District School Tax (Abstract) County Tax (Abstract) County Open Space Tax (Abstract) Due for Added and Omitted Taxes (54:4-63.1 et seq.)
Local Tax for Municipal Purposes Minimum Library Tax Municipal Open Space Tax Municipal Open Space Tax Added Add Additional Tax Levies
Analysis of2016 Property Tax Levy
$ 40,812,697 276,331
$ 3,749,282 38,581 12,259
8,217,655 509,302 78,703
254 125,618
$41,089,028
$28,357,374
3,800,122
8,931,532
$41,089,028
64
BOROUGH OF WALDWICK STATEMENT OF TAX TITLE LIENS RECEIVABLE
Balance, January 1, 2016
Increased by: Transfers from Taxes Receivable
Balance, December 31,2016
Municipal Alliance Program-Donation K9 Unit Donations Clean Communities Recycling Grant History Grant
STATEMENT OF GRANTS RECEJV ABLE
Balance, January I, Accrued
2016 in 2016
$ 12,184 $ 3,000 7,478
14,313 2,795 1,315
$ 19,662 $ 2 I ,423
Cash Received Due from Other Trust Fund
65
$
$
$
Collections
1,778
14,313 2,795
985
19,871
18,093 1,778
$ 19,871
EXHIBIT A-8
$ 790
900
$ 1,690
EXHIBIT A-9
Balance, December 3 1 ,
Cancelled 2016
$ 1,222 $ 12,184 7,478
330
$ 1,222 $ I 9,992
EXHIBIT A-10 BOROUGH OF WALDWICK
STATEMENT OF REVENUE ACCOUNTS RECEIVABLE
Balance, Balance, January 1, December 31,
2016 Accrued Collected 2016 Borough Clerk Licenses
Alcoholic Beverage $ 18,898 $ 18,898 Other 695 695
Fees and Permits 16,874 16,874 Tax Collector
Fees and Permits 562 562 Board of Health
Licenses 17,712 17,712 Construction Code Official
Fees and Permits 425,768 425,768 Fire Prevention Bureau
Fees and Permits 18,019 18,019 Police
Fees and Permits 774 774 Swimming Pool
Fees and Permits 119,804 119,804 Park and Ride Contingency Fund
Fees and Permits 41,405 41,405 Parking Meter
Fees and Permits 19,005 19,005 Municipal Court Fines and Costs $ 9,894 96,578 101,598 $ 4,874
Interest and Costs on Taxes 61,092 61,092 Energy Receipts Tax 2,468,600 2,468,600 Sewer Privileges - Midland Park and Wyckoff 101,641 101,641 Cable Television Franchise Fees 149,873 149,873 Police Training- Various Municipal Agreements 49,182 49,182 Uniform Fire Safety Act 12,910 12,910 Solar Energy Credit 4,286 4,286 Cell Site Rent 344 888 344 888
$ 9,894 $ 3,968,566 $ 3,973,586 $ 4,874
Cash Received $ 3,962,434 Due from Water Utility Operating Fund 11,152
$ 3,973,586
66
Salaries and Wages General Administration Mayor and Council Municipal Clerk Financial Administration Revenue Administration Tax Assessment Administration
Police Fire Fire Prevention Streets and Road Maintenance
Recycling Recreation Services and Programs Municipal Court Uniform Construction Code
BOROUGH OF WALDWICK STATEMENT OF 2015 APPROPRIATION RESERVES
Balance, Balance January 1, Cancelled After
2016 Transfers Payables Modification
$ 47,863 $ 47,863 2,754 2,754 1,923 1,923
207 $ 1,000 1,207 1,475 1,475 7,859 7,859
28,708 28,708 69 69
1,400 1,400 4,777 $ 3,703 8,480 1,282 1,000 2,282 7,055 7,055 1,285 1,285 4,350 4,350
NJPDES Stormwater Permit-Streets and Roads 600 600
Total Salaries and Wages ll1,607 2,000 3,703 117,310
Other Expenses General Administration 3,412 3,412 Employment Services 13,971 13,971 Mayor and Council 1,897 1,897 Municipal Clerk 240 530 770 Audit Services 31,235 31,235 Revenue Administration 1,360 3,000 4,360 Tax Title Liens 100 100 Tax Assessment Administration 722 722 Legal Services & Costs 22,465 22,465 Engineering Services & Costs 2,970 2,970 Planning Board 3,153 131 3,284 Board of Adjustments 552 150 702 Insurance
General Liability 40,700 40,700 Group Insurance for Employees 50,295 57 50,352
Police 53 1,000 1,053 Acquisition of Police Vehicles 15 15 Office of Emergency Management 500 500 Aid to Volunteer Ambulance Companies 1,325 1,325 Fire 12,217 12,217
Fire Prevention 22,746 22,746 Streets and Road Maintenance 419 213 632 Snow Removal 423 423 Municipal Park and Ride 902 902 Traffic Control Devices 972 972 Garbage Collection 2,392 2,392
Recycling 160 160 Public Buildings and Grounds 21,291 21,291 Vehicle Maintenance 11,832 11,832
67
Expended
$ 759 939
143 15,592
1,320
207
470 180
19,610
746
28,943 2,055
8 1,741
917
75
291
104
160 552 944
EXHIBIT A-ll Page 1
Balance Lapsed
$ 47,863 2,754 1,164
268 1,475 7,716
13,116 69 80
8,480 2,075 7,055
815 4,170
600
97,700
2,666 13,971
1,897 770
2,292 2,305
100 714
20,724 2,970 3,284
702
40,700 50,352
136 15
500 1,250
12,217 22,455
632 319 902
972 2,392
20,739 10,888
Northwest Bergen Corum. Contractual
BOROUGH OF WALDWICK STATEMENT OF 2015 APPROPRIATION RESERVES
(Continued)
Balance, Balance January I, Cancelled After
2016 Transfers Payables Modification
$ 1,634 $ 1,634
Welfare/Administration of Public Assistance 100 100 Recreation Services & Programs 4,283 4,283 Community Television 1,712 1,712 Municipal Court 5,240 5,240
Public Defender 11,105 11,105
Celebration of Public Events 1,751 1,751 Uniform Construction Code 5,643 5,643
Fuel Oil 14,131 $ (6,000) 8,131
Electricity 3,223 3,223
Natural Gas 6,896 6,896
Water 423 423 Sewerage Processing and Disposal 5,906 5,906
Sanitary Landfill Dump Fees 82,429 82,429 Accumulated Leave Compensation 3,829 3,829 Social Security 34,973 34,973 Police & Firemen's Retirement System ofNJ 1,500 1,500
Public Employee Retirement System 3,901 $ 38 3,939
Recycling Tax 1,698 1,698 Municipal Alli8nc -Local Share 1,287 621 1,908 Recycling Grant 1,061 1,061
Police Donations 1,400 1,400
Police Vest Fund 2,364 2,364 Steed Donations 431 431
Total Other Expenses 445,239 (2,000) 1,740 444,979
$ 556,846 $ $ 5,443 $ 562,289
Cash Disbursed
Accounts Payable Transferred to Appropriated Reserves
68
Expended
$ 550
267
10
56
2,257
755
513
1,061
2,364
44,369
$ 63,979
$ 56,918 3,636
3,425
$ 63,979
EXHIBIT A-ll Page 2
Balance
Lapsed
$ 1,084
100
4,283
1,712 4,973
11,105
1,741
5,587
8,131 3,223
4,639
423 5,906
81,674
3,829 34,460
1,500
3,939
1,698 1,908
1,400
431
400,610
$ 498,310
Balance, January I, 2016
Increased by:
BOROUGH OF WALDWICK STATEMENT OF ACCOUNTS PAYABLE
Charges to 2016 Budget Appropriation Transferred from 2015 Appropriated Reserves
Decreased by: Cash Disbursements Cancelled Payables Restored to Appropriation Reserves
Balance, December 31, 2016
STATEMENT OF PREPAID TAXES
Balance, January I, 2016
Increased by: 2016 Taxes Collected
Decreased by: Applied to 2016 Taxes
Balance, December 31, 2016
69
EXHIBIT A-12
$ 238,340
$ 228,349 3,636
231,985
470,325
232,897 5,443
238,340
$ 231,985
EXHIBIT A-13
$ 266,358
182,106
448,464
266,358
$ 182,106
Balance, January I, 2016
Increased by: Overpayments
Decreased by: Refunds
Balance, December 31, 2016
Balance, January I, 2016
Increased by: 2016 Tax Levy
County Taxes
BOROUGH OF WALDWICK STATEMENT OF TAX OVERPAYMENTS
STATEMENT OF COUNTY TAXES PAYABLE
County Open Space Preservation Added and Omitted Taxes
Decreased by: Payments
$3,749,282 38,581 12,259
STATEMENT OF LOCAL DISTRICT SCHOOL TAXES PAYABLE
Increased by: Levy- Calendar Year 2016
Decreased by: Payments
70
EXHIBIT A-14
$ 49,548
42,824
92,372
49,548
$ 42,824
EXHIBIT A-15
$ 24,464
3,800,122
3,824,586
$ 3,824,586
EXHIBIT A-16
$ 28,357,374
$ 28,357,374
Balance, January l, 2016
Increased by: Cash Receipts
Decreased by: Payments to State of New Jersey
Balance, December 31, 2016
Tax Appeals Sale of Municipal Assets Po1ice Donations
BOROUGH OF WALDWICK STATEMENT OF DUE TO STATE OF NEW JERSEY
SALES TAX PAYABLE
STATEMENT OF MISCELLANEOUS RESERVES
Balance, January 1,
2016
$ 413,662 262,109
95
$ 675,866
71
EXHIBIT A-17
$ 1,126
3,942
5,068
3,075
$ 1,993
EXHIBIT A-18
Balance, Cash December 31,
Receipts 2016
$ 413,662 $ 25,609 287,718
50 145
$ 25,659 $ 701,525
Drunk Driving Enforcement Fund NJ Alcohol Rehab. Program - Court Police Other Expenses Stormwater Grant Police Vest Fund Recycling Grant
BOROUGH OF WALDWICK STATEMENT OF APPROPRIATED RESERVES
PUBLIC AND PRIVATE PROGRAMS
$
$
Balance, January 1,
2016
12,318 2,219
786 10,261
25,584
Transferred from 2015
Appropriation Reserves
$ 2,364 1,061
$ 3,425
EXHIBIT A-19
Balance, Cash December 31,
Disbursements 2016
$
$
1,250 170
$ 12,318 969 616
10,261 2,364 1,061
1 ,420 ;;$~=27d;,5;;,;8;;;,9
EXHIBIT A-20
STATEMENT OF UNAPPROPRIATED RESERVES- PUBLIC AND PRIVATE PROGRAMS
Drunk Driving Enforcement Fund Police Vest Crime Prevention Alcohol Education Steed Donations Clean Communities
Balance, January 1, 2016
Increased by: Cash Receipts
Decreased by: Payments to State of New Jersey
Balance, December 31, 2016
Balance, January 1, Cash
2016 Receipts
$ 16,310 2,100 $ 4,236 3,136 7,153 1,578 4,841 7,588
$ 35,118 $ 11,824
STATEMENT OF DUE TO STATE OF NEW JERSEYCONSTRUCTION CODE FEES PAY ABLE
72
Anticipated Balance, in 2016 December 31, Budget 2016
$ 16,310 2,100 $ 4,236 3,136 7,153
1,578 4,841 7,588
$ 33,540 $ 13,402
EXHIBIT A-21
$ 3,605
22,256
25,861
19,305
$ 6,556
TRUST FUNDS
EXHIBITB-3
BOROUGH OF WALDWICK STATEMENT OF TRUST CASH- COLLECTOR-TREASURER
Animal Control Park and Ride Other Trust State Unemolovment SelfMinsurance Municioal Ooen Soace
Balance, January 1, 2016 $ 27,252 $ 6,I70 $ I,560,53I $ 73,37I $ I48,033 $ IOI,883
Increased by Receipts: Insurance Reimbursements $ 4,475
COAH Proceeds $ 96,735
Interest on Investments and Deposits $ 28 $ 5 $ I04 I96 $ I2I
Employee Payroll Deductions 7,340,437 6,565
Developer's Escrow and Other Reserves I,I88,744
State Dog License Fees I,2I2 Dog License Fees II,679
Cat License Fees and Late Fees I,76I Receipts from Current Fund I4,555 79,228
Receipts from Park & Ride Contingency Fund I,304
Receipts from Unemployment Insurance Trust Fund 2,760 Budget Appropriation --- I2,500
I4,680 I4,560 8,629,980 6,669 l7,I7I 79,349
4I,932 20,730 IO,I90,5II 80,040 I65,204 I8I,232
Decreased by Disbursements: Expenditures Under R.S. 4:19-15.11 13,223 Payments to Current Fund 42 I3,300 I04 354
Payments to Other Trust Fund I,304 2,760
Payments to General Capital Fund I I,385 I5,000
Payments to Water Utility Operating Fund 288 Payments to State of New Jersey I,2IO 8,I54
Developer's Escrow and Other Reserves 876,337
Payroll Deductions Payable 7,377,86I Reserve for COAH Expenditures I3I,I40
Self· Insurance Expenditures 30,5I2 Municipal Open Space Expenditures --- I2,825
I4,475 I2,689 8,398,926 I I,OI8 30,866 __17,825
Balance, December 31, 2016 $ 27,457 $ 8,04I $ ,1,791,585 $ 69,022 $ 134,338 $ I53,407
73
Increased by:
BOROUGH OF WALDWICK STATEMENT OF DUE TO STATE OF NEW JERSEY
ANIMAL CONTROL FUND
Dog License Fees Collected in 2016
Decreased by: Payments to State of New Jersey
Balance, December 31, 2016
Balance, January 1, 2016
Increased by: Interest on Investments and Deposits
Decreased by: Cash Disbursements
STATEMENT OF DUE TO CURRENT FUND ANIMAL CONTROL FUND
STATEMENT OF RESERVE FOR ANIMAL CONTROL EXPENDITURES ANIMAL CONTROL FUND
Balance, January 1, 2016
Increased by: Dog License Fees Collected in 2016 $ Cat License and Late Fees Collected in 2016
Decreased by: Expenditures Under R.S. 4:19- 15.11
Balance, December 31, 2016
74
EXHIBIT B-4
$ 1,212
1,210
$ 2
EXHIBIT B-5
$ 14
28
42
$ 42
EXHIBITB-6
$ 27,238
11,679 1,761
13,440
40,678
13,223
$ 27,455
BOROUGH OF WALDWICK STATEMENT OF DUE TO/FROM CURRENT FUND
PARK AND RIDE CONTINGENCY FUND
Balance, January 1 , 20 16 (Due from)
Increased by: Park and Ride Permits Collected by Current Fund
Decreased by: Receipts from Current Fund
Balance, December 31, 2016 (Due to)
STATEMENT OF DUE TO/FROM OTHER TRUST FUND PARK AND RIDE CONTINGENCY FUND
Balance, January I, 2016 (Due to)
Decreased by: Payments to Other Trust Fund
Balance, December 31,2016 (Due from)
STATEMENT OF DUE TO GENERAL CAPITAL FUND PARK AND RIDE CONTINGENCY FUND
Balance, January 1, 2016
Decreased by: Payments to General Capital Fund
75
EXHIBITB-7
$ 5,248
4,658
9,906
14,555
$ 4,649
EXHIBITB-8
$ 652
1,304
$ 652
EXHIBITB-9
$ 11,385
$ 11,385
BOROUGH OF WALDWICK STATEMENT OF RESERVE FOR PARK AND RIDE EXPENDITURES
PARK AND RIDE CONTINGENCY FUND
Balance, January I, 2016 (Deficit)
Increased by: Park and Ride Permits Collected by Current Fund Interest on Investments
Balance, December 31, 2016
Balance, January I, 2016
Decreased by: Payments to Other Trust Fund
Balance, January I, 2016
Increased by:
STATEMENT OF DUE TO OTHER TRUST FUND UNEMPLOYMENT INSURANCE TRUST FUND
STATEMENT OF DUE TO STATE OF NEW JERSEY UNEMPLOYMENT INSURANCE TRUST FUND
Benefits Due to State of New Jersey
Decreased by: Payments to State ofNew Jersey
Increased by: Interest on Investments
Decreased by: Payments to Current Fund
STATEMENT OF DUE TO CURRENT FUND UNEMPLOYMENT INSURANCE TRUST FUND
76
$
EXHIBIT B-1 0
$ (619)
4,658 5
4,663
$ 4,044
EXHIBIT B-11
$ 2,760
$ 2,760
EXHIBIT B-12
$ 2,251
5,903
8,154
$ 8,154
EXHIBIT B-13
$ 104
104
BOROUGH OF WALDWICK STATEMENT OF RESERVE FOR UNEMPLOYMENT INSURANCE CLAIMS
UNEMPLOYMENT INSURANCE TRUST FUND
Balance, January I, 2016
Increased by: Employee Payroll Deductions
Decreased by: Benefits Due State ofNew Jersey
Balance, December 31, 20 J 6
Balance, January J, 20 l 6
Increased by:
STATEMENT OF DUE TO CURRENT FUND SELF INSURANCE TRUST FUND
Interest on Investments and Deposits
Decreased by: Payments to Current Fund
$
$
$
$
STATEMENT OF RESERVE FOR PROPERTY INSURANCE EXPENDITURES SELF INSURANCE TRUST FUND
Balance, January I, 2016
Increased by: Insurance Reimbursements 2016 Budget Appropriation
Decreased by: Expenditures
Property Insurance Expenditures
Balance, December 31,2016
$
$ 4,475 12,500
$
77
EXHIBIT B-14
68,360
6,565
74,925
5,903
69,022
EXHIBIT B-J 5
!58
196
354
354
EXIDBITB-16
147,875
16,975
J 64,850
30,512
134,338
EXHIBTTB-17 BOROUGH OF WALDWICK
STATEMENT OF DUE TO CURRENT FUND OTHER TRUST FUND
Balance, January 1, 2016 $ 86,592
Increased by: 2016 Anticipated Revenue 1,778
88,370
Decreased by: Payments to Current Fund 13,300
Balance, December 31, 2016 $ 75,070
EXHIBIT B-18 STATEMENT OF DEVELOPER'S ESCROW AND OTHER RESERVES
OTHER TRUST FUND
Balance, Balance January 1, December 3 I,
2016 Increases Decreases 2016
TTL Premiums $ 485,200 $ 342,500 $ I 86,600 $ 641,100 Basketball Program 38,307 40,2 I 0 46,891 3 I ,626
Swim Meet 2,666 500 3,166 Police Outside Duty 155,117 355,887 313,799 I 97,205 Municipal Court- P.O.A.A. 3,302 102 3,404 Municipal Alliance - Teen Canteen 22,179 86 1,768 20,497 Police Donations 5,01 I 5,01 I
K-9 Unit Donations 1,970 1,970
E-Bay 100 100
Flexible Spending 4,341 12,773 9,221 7,893 Snow Removal Trust 80,864 20,085 100,949 Performance and Maintenance Bonds 94,475 1,908 92,567 Developer1s and Other Escrows 413,339 301,626 313,554 401,411 Road Openings 2,100 2,100 Dumpster Permits 1,200 800 400 Vacant Properties I 5,900 500 I 5,400 Evidence Money 400 400 Wall of Heroes 1,300 1,104 196
$ 1,212,796 $ 1,188,744 $ 878,115 $ 1,523,425
Cash Receipt $ 1,188,744 Cash Disbursements $ 876,337 Due to Current Fund 1,778
$ 1,188,744 $ 878,115
78
Balance, January l, 2016
increased by: Cash Receipts
Decreased by: Cash Disbursements
Balance, December 31, 2016
Balance, January I, 2016
Increased by: Cash Receipts
Increased by: Cash Disbursements
Balance, December 31, 2016
Balance, January 1, 2016
Increased by:
2016 Tax Levy 2016 Added Tax Levy
Decreased by: Cash Receipts
Balance, December 31, 2016
BOROUGH OF WALDWICK STATEMENT OF RESERVE FOR PAYROLL DEDUCTIONS
OTHER TRUST FUND
STATEMENT OF RESERVE FOR COAH EXPENDITURES OTHER TRUST FUND
STATEMENT OF DUE FROM CURRENT FUND MUNICIPAL OPEN SPACE TRUST FUND
79
EXHIBIT B-19
$ 68,385
$ 7,340,437
7,408,822
7,377,861
$ 30,961
EXHIBIT B-20
$ 195,882
96,735
292,617
131,140
$ 161,477
EXHIBIT B-21
$ 78,703 254
$
$
525
78,957
79,482
79,228
254
Balance, January l, 2016
Increased by:
BOROUGH OF WALDWICK STATEMENT OF DUE TO GENERAL CAPITAL FUND
MUNICIPAL OPEN SPACE TRUST FUND
General Capital Fund Improvement Authorizations
Decreased by: Cancelled General Capital Improvement Authorizations Cash Disbursements
Balance, December 31, 2016
$
EXHIBIT B-22
$ 15,000
80,000
95,000
9,372 15 000
24,372
$ 70,628
EXHIBIT B-23
STATEMENT OF RESERVE FOR MUNICIPAL OPEN SPACE EXPENDITURES MUNICIPAL OPEN SPACE TRUST FUND
Balance, January 1, 2016
Increased by: Due from Current Fund:
2016 Tax Levy 2016 Added Tax Levy
Cancelled General Capital Fund Authorizations Interest on Investments and Deposits
Decreased by: Cash Disbursements General Capital Fund Improvement Authorizations
Balance, December 31,2016
$
80
$ 87,408
78,703 254
$ 78,957 9,372
121 88,450
175,858
12,825 80,000
92,825
$ 83,033
GENERAL CAPITAL FUND
EXHIBITC-2
BOROUGH OF WALDWICK STATEMENT OF GENERAL CAPITAL CASH- COLLECTOR-TREASURER
Balance, January I, 2016 $ 955,628
Increased by: 2016 Budget Appropriation:
Capital Improvement Fund $ 75,400 Costs of Improvements - Ord #6-06/20-06 36,576
Receipts from Current Fund 98,10 I Receipts from Park & Ride Contingency Fund 11,385 Receipts from Municipal Open Space Trust Fund 15,000 Interest on Investments and Deposits 3,383 Proceeds from Bond Anticipation Notes 1,843,400 Grant and Other Receivables 253,750
2,336,995
3,292,623 Decreased by Disbursements:
Bond Anticipation Notes 825,900 Improvement Authorizations 954,547 Accounts Payable 198,424
I ,978,871
Balance, December 31, 2016 $ 1,313,752
81
Fund Balance Capital Improvement Fund Grant and Other Receivables
Accounts Payable Due from Current Fund
BOROUGH OF WALDWICK ANALYSIS OF GENERAL CAPITAL CASH
Due from Municipal Open Space Trust Fund Reserve for Payment of Debt Service Reserve for Pistol Range
Improvement Authorizations:
Or d. No.
2-96 9-98114-98/21-98/8-00
1-02 02-03110-05 04-03 11-03 5-05 6-06/20-06 2-07 01-08 01-09
5-10 2-11/7-11
13-ll
2-12
2-13 3-14 7-14 20-14/3-15 1-15 4-15 5-15 11-15
l-16 3-16 16-16
Improvement Description
Various Improvements and Acq. of Equipment Various Improvements and Acq. of Equipment
Various Public Improvements and Acquisition of Equipment Various Public Improvements Renovation and Improvement of Signal Tower Various Public Improvements and Acquisitions Various Public Improvements and Acquisitions Various Public Improvements & Acquisitions Various Public Improvements & Acquisitions Various Public Improvements & Acquisitions Various Public Improvements and the Acq. of New, Additional or Replacement Equip.
Various Public lmpvts. & Acq. Of Equip. Various Public Improvements, the Acq.
of New Additional or Replacement Equip., a New Automotive Vehicle and Addition to the Waldwick Public Library
HoHoKus Brook Embankment Stabilization Project
Various Public Improvements, the Acq. ofNew, Additional or Replacement
Equip., and New Automotive Vehicles Various Public Improvements & Acquisitions Various Public Improvements & Acquisitions Various Public Improvements Improvements to Various ADA Curb Cuts Various Public Improvements & Acquisitions Various Public Improvements
Various Improvements to Maintain the Police Training Facility Various Public Improvements Various Public Improvements & Acquisitions Various Public Improvements Various Public Improvements & Acquisitions
82
EXHIBIT C-3
Balance,
December 31, 2016
$ 181,555
$
37,770 (416,888) 149,769
(36) (70,628) 34,536 10,839
8,602 4,991 4,518 2,157
822 173
3,399 (134,918)
19,303 29,778
60,028 28,645
115,881
889
40,195 108,149 46,117
3,969 2,225
115,201 2,964
100,000 40,810
368,734 17,540
396,663
1,313,752
Balance, January I, 2016
Increased by:
BOROUGH OF WALDWICK STATEMENT OF DUE FROM CURRENT FUND
2016 Budget Appropriation Balance - Interlocal Agreement Receipts Deposited in Current Fund
$
Decreased by: Interest on Investments Cash Receipts
Balance, December 31, 2016
25,000 1,650
3,383 98,1 OJ
STATEMENT OF DUE FROM PARK & RIDE CONTINGENCY FUND
Balance, January 1, 2016
Decreased by: Cash Receipts
STATEMENT OF DUE FROM MUNICIPAL OPEN SPACE TRUST FUND
Balance, January I, 2016
Increased by: Improvement Authorizations Funded by Municipal Open Space
Decreased by: Receipts from Municipal Open Space Cancelled Improvement Authorizations
Balance, December 31, 2016
83
$ 15,000 9,372
EXHIBITC-4
$ 74,870
26,650
101,520
101,484
$ 36
EXHIBITC-5
$ 11,385
$ 11,385
EXHIBITC-6
$ 15,000
80,000
95,000
24,372
$ 70,628
EXHIBITC-7
BOROUGH OF WALDWICK STATEMENT OF DEFERRED CHARGES TO FUTURE TAXATION- FUNDED
Balance, January I, 2016 $ 9,183,931
Decreased by: 2016 Budget Appropriation
Bond Principal $ 1,435,000 Loan Principal 8,823
1,443,823
Balance, December 31, 2016 $ 7,740,108
84
Or d. No.
6-06/20-06
15-I4
1-15
11-I5
1-I6 16-16
BOROUGH OF WALDWICK STATEMENT OF DEFERRED CHARGES TO FUTURE TAXATION- UNFUNDED
Improvement Description
Various Public Improvements & Acquisitions $
Rehabilitation of Walter Hammond Place
Various Public Improvements & Acquisitions
Various Public Improvements
Various Public Improvements & Acquisitions Various Public Improvements & Acquisitions
$
Balance, Cancelled Funded by January 1, 20I6 Improvement Budget
20I6 Authorizations Authorizations AnnroQriation
182,701 $ 36,576
701 $ 70I
775,000
50,900
$ 844,000 173,500
1,009,302 $ 1,017,500 $ 701 $ 36,576
Improvement Authorizations - Unfunded Less: Unexpended Proceeds of Bond Anticipation Notes:
Ord. 01-15 Ord. 11-15 Ord. 01-16 Ord. 16-16
85
Balance, December 31,
20I6
$ I46,125
775,000
50,900
844,000 173,500
$ 1,989,525
$
$
___ Analysis of Balance Financed by Bond
Anticipation Notes
775,000
50,900
844,000 173,500
1,843,400
Exoenditures
$
$
$
134,918
134,918
115,201 40,810
368,734 173,500
EXHIBIT C-8
Unexpended Improvement
Authorizations
$ !1,207
$ 11,207
$ 709,452
698,245
$ I 1,207
Other Receivable Tnterlocal Receivable
Total Ord. No. 16-16 Ord NQ 5-15 Ord_ NQ 16-16
Balance_ January I 2016 $ 441,436 $ 15,811
Increased by Other Agreements 65,741 $ 65,741 Tnterlocal Agreements 10,500 $ 10.500 Grants Awarded 200,500 ----
_____1!!,11_?_ 65,741 ~ 10,500
Decreased by 2016 Budget Appropriation-
Balance- lnterlocal Agreement 15.811 15,811 Cancellations 31,728 Collections 253,750 ----
301,289 _!.ll!l
Balance_ December 31, 2016 $ 416 888 $ 65.741 _, ___ $ 10.500
NJ Department
BOROUGH OF WALDWICK STATEMENT OF GRANT AND OTHER RECEIVABLES
NJ Department NJ Department NJ Department Env Protection ofTranspo!1mim\Q(Irnn~ QfTran~l):QrtatiQn
Ord_ No. 2-13 Ord No 15-14 Ord No 11-15 Ord_ NQ 16-16 Ord No 3-14 Ord. No. 11-14
$ 58,279 $ 24,361 $ 149.000 $ 28.619 $ 4.050
$ 150 000 --- --------
58 279 ~ 149,000 150,000 ~~
24,361 11,908 148,227 --------II 908 ~ __ ,_48,227
--------
$ 46,371 , ___ $ 773 $ 150 000 ~~
"'
EXHIBIT C~9
Count\· of Bergen
Ord. No. 20-1413-15 ~ill
$ 119,316 $ 15,000 $ 12,000 $ 15,000
$ 40 000 $ 10.500
119,316 15,000 12,000 15,000 ~000 10.500
7,367 83 815 9 800
83.815 7,367 ----~
$ 35,501 $ 7,633 $ 12,000 $ 5,200 $ 40,000 $ 10,500
EXHIBIT C-10
BOROUGH OF WALDWICK STATEMENT OF GENERAL SERIAL BONDS
Maturities of Bonds Outstanding Balance, Balance,
Date of Original December 31, 2016 Interest January I, December 31,
Purpose Issue Issue Date Amount Rate 2016 Decreased 2016
General Improvements 5/15/2002 $ 6,098,000 2115/2017 $ 438,000 4.625% $ 873,000 $ 435,000 $ 438,000
General Improvements 4/15/2008 8,127,000 4/15/2017 750,000 3.375 4/15/2018 800,000 3.500 4115/2019 800,000 3.500
4115/2020 802,000 3.500 3,877,000 725,000 3,152,000
General Improvements 1111/2014 4,508,000 11/112017 290,000 2.000 111112018-19 400,000 2.000 11/1/2020 415,000 2.000 1111/2021-23 420,000 2.000 1111/2024-25 420,000 2.500 1111/2026 418,000 2.500 4,298,000 275,000 4,023,000
$ 9,048,000 $ 1,435,000 $ 7,613,000
87
EXHIBIT C-11
BOROUGH OF WALDWICK STATEMENT OF NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE (NJEIT)
LOAN PAYABLE
Balance, January I, 2016 $
Decreased by: Paid by Budget Appropriation
Balance, December 31,2016 $
Analysis of Balance NJEIT- Fund Loan $ NJEIT- Trust Loan
$
88
135,931
8,823
127,108
59,860 67,248
127,108
EXHIBIT C-12
BOROUGH OF WALDWICK STATEMENT OF BOND ANTICIPATION NOTES
Date of Issue of Balance, Balance,
Ord. Original Date of Date of Interest January I, December 31,
No. Imorovement Description Note Issue Maturity Rate 2016 Increased Decreased 2016
1-15 Various Public Improvements & Acquisitions 7/30/2015 7/30/2015 7/29/2016 0.74 % $ 775,000 $ 775,000
7/29/2016 7/2812017 1.10 $ 775,000 $ 775,000
11-15 Various Public Improvements 7/30/2015 7/30/2015 7/29/2016 0.74 50,900 50,900
7/29/2016 7/28/2017 1.10 50,900 50,900
1-16 Various Public Improvements & Acquisitions 11110/2016 11110/2016 7/28/2017 0.95 844,000 844,000
16-16 Various Public Improvements & Acquisitions 11110/2016 11110/2016 7/28/2017 0.95 173,500 173,500
$ 825,900 $ 1,843,400 $ 825,900 $ 1,843,400
Notes Issued $ 1,017,500 Renewals 825,900 $ 825,900
$ 1,843,400 $ 825,900
89
EXHIDITC-13
BOROUGH OF WALDWICK STATEMENT OF IMPROVEMENT AUTHORIZATIONS
2016 Authorizations DO\\-TI- Deferred
payment or Charges Balance, Capital to Future Open Cancelled Balance,
Ord. Ordinance Januarv I 201~ lmpvt. Taxation Grants Space Other Inter local Improvement Paid or DecemQer;Jl 2016
No. Improvement Description Amount Funded Unfunded F~d Unfunded ReceivalJle Trust Fund Receivable Receivable Authorization Charged Funded !Jnfunded
2-96 Various Impvts. & Acq. of Equip. $ 383,400 $ 11,839 $ 3.237 $ 8,602
9-98/14-98/ 21-98/8-00 Various Improvements & Acq. Of Equipment 471,250 4,991 4,991
1-02 Various Public Impvts. & Acq. OfEquip. 1,482,950 15,701 11,183 4,518
02-03/10-05 Various Public Improvements 698,750 2,157 2,157
04-03 Renovation and Improvement of Signal Tower 23,883 822 822
11-03 Various Public Improvements and the Acq. Of New, Additional or Replacement Equipment 173 173
5-05 Various Public Improvements & Acquisitions 2,049,473 3,399 3.399
6-06/20-06 Various Public Improvements & Acquisitions 1,824,050 $ 11,207 $ 11,207
2-07 Various Public Improvements & Acquisitions 1,641,600 21,156 1,853 19.303
01-08 Various Public Improvements and the Acq. ofNew. Additional or Replacement Equip. 1,187,150 29,956 178 29,778
01-09 Various Public Improvements and the Acq. ofNew. Additional or Replacement Equip. 1,230,950 60,028 60.028
5-10 Various Public Impvts. & Acq. Of Equip. 37,044 8,399 28.645 2-1117-11 Various Public Improvements, the Acq.
ofNew Additional or Replacement Equip.,
a New Automotive Vehicle and Addition to the Waldwick Public Library 1,287,750 121,524 5,643 115,881
13-11 HoHoKus Brook Embankment Stabilization Project 22,000 889 889
2-12 Various Public Improvements, the Acq. ofNew, Additional or Replacement Equip., and New Automotive Vehicles 1,397,750 44,215 4,020 40,195
2-13 Various Public Improvements & Acquisitions 1.104,750 134.268 26,119 108.149
9-13 Rehabilitation of Lindbergh Parkway 335.000 3.013 $ 3,013
3-14 Various Public Improvements & Acquisitions 852,500 134,642 3,482 85.043 46.117
7-14 Various Public Improvements 77,000 14,812 10,843 3,969
15-14 Rehabilitation of Walter Hammond Place 150,000 35,914 701 36,615
20-1413-15 Improvements to Various ADA Curb Cuts 86,041 2,225 2.225
1-!5 Various Public Improvements & Acquisitions 844,030 245,971 13,257 117.513 115.201
4-15 Various Public Improvements 40,500 8,514 5,550 2.964
5-15 Various Improvements to Maintain the Police
Training Facility 100,000 100,000 100.000
11-15 Various Public Improvements 2!7,500 150,782 50,900 160.872 40,810
1-16 Various Public Improvements & Acquisitions 1,007,000 ' 43,000 s &44,000 $ 40.000 $ 80,000 638,266 368,734
3-16 Various Public Improvements 20,800 20,800 3,260 17,540
16-16 Various Public Improvements & Acquisitions 419,000 -------- 8,759 173,500 160,500 $ 65,741 $ 10,500 _____lb_337 223.163 173.500
$ 938,064 $ 308,779 $ 72,559 $ 1,017,500 $ 200.500 $ 80,000 $ 65,741 s 10,500 $ 56,367 $ 1,104,316 $ 823,508 ~452
Grant Receivable $ 31,728 Deferred Charges to Future Taxation- Unfunded 701 Due to Municipal Open Space Trust Fund 9,372 Fund Balance 14,566
$ 56,367
Cash Disbursements $ 954,547 Accounts Payable 149,769
$ 1,104,316
90
Balance, January 1, 2016
Increased by:
BOROUGH OF WALDWICK STATEMENT OF ACCOUNTS PAYABLE
Charges to Improvement Authorizations
Decreased by: Cash Disbursements
Balance, December 31, 2016
STATEMENT OF RESERVE FOR PAYMENT OF DEBT SERVICE
Balance, January 1, 2016
Balance, December 31,2016
STATEMENT OF RESERVE FOR PISTOL RANGE
Increased by: 2016 Budget Appropriation Balance - Interlocal Agreement Receipts Deposited in Current Fund
Balance, December 31,2016
$
STATEMENT OF CAPITAL IMPROVEMENT FUND
Balance, January I, 2016
Increased by: 2016 Budget Appropriation
Decreased by: Appropriation to Finance Improvement Authorizations
Balance, December 31, 2016
91
9,189 1,650
EXHIBIT C-14
$ 198,424
149,769
348,193
198,424
$ 149,769
EXHIBIT C-15
$ 34,536
$ 34,536
EXHIBIT C-16
$ 10,839
$ I 0,839
EXHIBIT C-17
$ 34,929
75,400
110,329
72,559
$ 37,770
EXHIBIT C- I 8
BOROUGH OF WALDWICK STATEMENT OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Balance, 20I6 Cancelled Funded Balance,
Ord. January I, Authori- Notes Improvement by Budget December 3 I,
No. 2016 zations Issued Authorizations Appropriation 2016
6-06/20-06 Various Public Improvements & Acquisitions $ 182,701 $ 36,576 $ 146,125
15-14 Rehabilitation of Walter Hammond Place 701 $ 701
1-16 Various Public Improvements & Acquisitions $ 844,000 $ 844,000 16-16 Various Public Improvements & Acquisitions 173,500 173,500
$ 183,402 $ 1,017,500 $ I ,017,500 $ 701 $ 36,576 $ 146,125
92
WATER UTILITY FUND
EXHIBITD-5
BOROUGH OF WALDWICK STATEMENT OF WATER UTILITY CASH- WATER COLLECTOR-TREASURER
Operating Capital
Balance, January I, 2016 $ 765,801 $ 119,486
Increased by: Consumer Accounts Receivable $ 1,938,033 Fire Hydrant Service 25,000 Miscellaneous 13,946 Water Overpayments 4,158 Prepaid Water Rents 952 Interest on Investments and Deposits $ 73 Bond Anticipation Notes 248,000 Receipts for Current Fund 11,152 Receipts from Other Trust Fund 288 Receipts from Water Utility Operating Fund 17,793
1,993,529 265,866
2,759,330 385,352 Decreased by:
2016 Budget Appropriations 1,615,416 2015 Appropriation Reserves 23,078 Accounts Payable 20,625 28,696 Water Overpayments Refunded 439 Improvement Authorizations 111,006 Interest on Bonds and Notes 33,163 Interest on Water Loan 29,546 Bond Anticipation Notes 133,300 Payments to Water Utility Capital Fund 17,793
1,740,060 273,002
Balance, December 31, 2016 $ 1,019,270 $ 112,350
93
Fund Balance Capital Improvement Fund NJ EIT Loan Receivable Accounts Payable
BOROUGH OF WALDWICK ANALYSIS OF WATER UTILITY CAPITAL CASH
Due from Water Utility Operating Fund Reserve for Payment of Debt
Or d. No. Improvement Description
02-08 Various Public Improvements & Acquisitions
3-11 Various Public Improvements & Acquisitions
4-14 Various Public Improvements & Acquisitions
2-15 Various Public Improvements 2-16 Various Public Improvements & Acquisitions
Balance, January I, 2016
Increased by: Water Rents Levied
Decreased by:
STATEMENT OF CONSUMER ACCOUNTS RECEIVABLE WATER UTILITY OPERATING FUND
Collections $ 1,938,033 Overpayments Applied Prepaid Water Rents Applied
Balance, December 31, 2016
4,932 4,345
94
EXHIBITD-6
Balance, December 31,
2016
$ 21,297 10,145 (5,000) 27,599 (6,025) 4,008
3,873
18
307
6,166 49,962
$ 112,350
EXHIBIT D-7
$ 35,918
I ,940,573
1,976,491
1,947,310
$ 29,181
BOROUGH OF WALDWICK STATEMENT OF NEW JERSEY EIT LOAN RECEIVABLE
WATER UTILITY CAPITAL FUND
Balance, January 1, 2016
Balance, December 31, 2016
Generator Springs and Wells Reservoirs Filters
STATEMENT OF FIXED CAPITAL WATER UTILITY CAPITAL FUND
Tanks, Pumping Station Structures Distribution Mains and Accessories Meters and Accessories Fire Hydrants General Equipment Engineering, Legal Vehicles Other
95
Balance, January 1,
2016
$ 74,817 383,707
50,034 812,567
3,027,568 I ,617,639
943,253 76,987
1,358,148 171,828 31,842 21,441
$ 8,569,831
EXHIBITD-8
$ 5,000
$ 5,000
EXHIBITD-9
Balance, December 31,
2016
$ 74,817 383,707
50,034 812,567
3,027,568 1,617,639
943,253 76,987
1,358,148 171,828 31,842 21,441
$ 8,569,831
Ord. No.
2-02 02-08 03-11 04-14 02-15 02-16
BOROUGH OF WALDWICK STATEMENT OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
WATER UTILITY CAPITAL FUND
Increased by: 2016 Authorizations
Deferred Deferred Balance, Reserve Charge to
Ordinance January I, for Future lmnrovement Description Amount 2016 Amortization Revenue
Various Impvts. And Acq. Of Equipment $ 220,500 $ 69 Various Public Improvements & Acquisitions 412,000 4,473 Various Public Improvements & Acquisitions 115,000 18 Various Public Improvements & Acquisitions 135,000 307 Various Public Improvements 140,000 140,000 Various Public Improvements 120,500 $ 5,800 $ 114,700
$ 144,867 $ 5,800 $ 114,700
96
EXHIBIT D-10
Balance, December 31,
2016
$ 69 4,473
18 307
140,000 120,500
$ 265,367
Operating Salaries and Wages Other Expenses
Capital Improvements Capital Outlay
Statutory Expenditures Social Security
Balance, January 1, 2016
Increased by:
BOROUGH OF WALDWICK STATEMENT OF 2015 APPROPRIATION RESERVES
WATER UTILITY OPERATING FUND
Balance, Budget January 1, After
2016 Transfers Modifications
$ 173 $ 2,500 $ 2,673 82,421 (2,500) 79,921
8,000 8,000
6,056 6,056
$ 96,650 $ $ 96,650
STATEMENT OF ACCOUNTS PAYABLE WATER UTILITY OPERATING AND CAPITAL FUNDS
Charges to 2016 Appropriations Charges to Improvement Authorizations
Decreased by: Cash Disbursements
Balance, December 31, 2016
97
EXHIBIT D-11
Balance Expended Lapsed
$ 1,887 $ 786 21,033 58,888
8,000
158 5,898
$ 23,078 $ 73,572
EXHIBIT D-12
Operating Capital Fund Fund
$ 20,625 $ 28,696
84,170 27,599
104,795 56,295
20,625 28,696
$ 84,170 $ 27,599
Balance, January I, 2016
Increased by: Prepaid Rents
Decreased by: Applied to 2016 Water Rents
Balance, December 31, 2016
Balance, January I, 2016
Increased by: Overpayments
Decreased by: Applied to 2016 Water Rents Overpayments Refunded
Balance, December 31, 2016
Balance, January I, 2016
Decreased by: Paid by Budget Appropriation
Balance, December 31, 2016
BOROUGH OF WALDWICK STATEMENT OF PREPAID WATER RENTS
WATER UTILITY OPERATING FUND
STATEMENT OF WATER RENT OVERPAYMENTS WATER UTILITY OPERATING FUND
$
STATEMENT OF STATE WATER LOAN PAYABLE WATER UTILITY CAPITAL FUND
4,932 439
$
$
$
$
$
$
EXHIBIT D-13
4,345
952
5,297
4,345
952
EXHIBIT D-14
5,371
4,158
9,529
5,371
4,158
EXHIBIT D-15
1,219,331
145,595
1,073,736
Analysis of Balance
98
NJ EIT (2000) NJ EIT (20 I 0)
$ 211,308 862 428
$ I ,073,736
BOROUGH OF WALDWICK STATEMENT OF IMPROVEMENT AUTHORIZATIONS
WATER UTILITY CAPITAL FUND
Ord. No. Improvement Description
2-02 Various lmpvts. And Acq. Of
Equipment 02-08 Various Public Improvements & Acquisitions 03-11 Various Public Improvements & Acquisitions 04-14 Various Water System Improvements 02-15 Various Public Improvements 02-16 Various Public Improvements & Acquisitions
Ordinance Amount
$ 220,500 412,000 115,000 135,000 140,000 120,500
Balance, January 1. 2016
Funded Unfunded
$ 69 $ 3,873 600
18 307
74,233
$ 4,198 $ 74,902
2016 Authorizations Deferred Charges
Capital Improvement
Fund
$ 5,800
$ 5,800
$
$
to Future
Revenue
114,700
114,700
Cash Disbursed Accounts Payable
99
$
~
$
$
Paid or Charged
68,067 70,538
138,605
111,006 27,599
138,605
$
$
EXHIBIT D-16
Balance, December 31. 2016 Funded Unfunded
$ 69 3,873 600
18 307
6,166 49,962
4,198 $ 56,797
Balance, January 1, 2016
Increased by: Budget Appropriation
Decreased by:
BOROUGH OF WALDWICK STATEMENT OF CAPITAL IMPROVEMENT FUND
WATER UTILITY CAPITAL FUND
Appropriation to Finance Improvement Authorizations
Balance, December 31,2016
STATEMENT OF DUE FROM WATER UTILITY OPERATING FUND WATER UTILITY CAPITAL FUND
Balance, January 1, 2016
Increased by: 2016 Budget Appropriations:
Capital Improvement Fund $ 6,025 Cost of Improvements 12,972
Decreased by: Cash Receipts 17,793 Interest on Investments and Deposits 73
Balance, December 31,2016
100
EXHIBIT D-1 7
$ 9,920
6,025
15,945
5,800
$ 10,145
EXHIBIT D-18
$ 4,894
18,997
23,891
17,866
$ 6,025
BOROUGH OF WALDWICK STATEMENT OF DUE TO/FROM CURRENT FUND
WATER UTILITY OPERATING FUND
Balance, January l, 2016 (Due from)
Decreased by: Receipts for Current Fund
Balance, December 31, 2016 (Due to)
Balance, January I, 2016
Decreased by: Cash Receipts
STATEMENT OF DUE FROM OTHER TRUST FUND WATER UTILITY OPERATING FUND
101
EXHIBIT D- I 9
$ I,890
11 '152
$ 9,262
EXHIBIT D-20
$ 288
$ 288
EXHIBIT D-21
BOROUGH OF WALDWICK STATEMENT OF ACCRUED INTEREST PAY ABLE ON BONDS AND NOTES
WATER UTILITY OPERATING FUND
Balance, January I, 2016
Increased by: Budget Appropriation
Interest on Bonds Interest on Notes
Decreased by: Interest Paid
Balance, December 31, 2016
Analysis of Balance
Accrued Interest on Notes Accrued h1terest on Bonds
102
$ 30,462 1,251
$
$
$
8,000
31,713
39,713
33,163
6,550
679 5,871
$ 6,550
Ord. No.
02-15
02-16
Improvement Description
Various Public Improvements
Various Public Improvements and Acquisitions
BOROUGH OF WALDWICK STATEMENT OF BOND ANTICIPATION NOTES
WATER UTILITY CAPITAL FUND
Date of Issue of Original
Note Date of
Issue
Date of Interest Maturity Rate
7/30/2015 7/30/2015 7/29/2016 0.74% 7/29/2016 7/28/2017 1.10%
11110/2016 11/10/2016 7/28/2017 0.95%
103
Notes Issued Renewals
$
$
Balance, January 1,
2016
133,300
133,300
$
$
$
$
EXHIBIT D-22
Balance, December 31,
Increased Decreased 2016
$ 133,300 133,300 $ 133,300
114 700 114,700
248,000 $ 133,300 $ 248,000
114,700 133,300 $ 133,300
248,000 $ 133,300
EXHIBIT D-23
BOROUGH OF WALDWICK STATEMENT OF WATER SERIAL BONDS
WATER UTILITY CAPITAL FUND
Maturities of Bonds Outstanding Balance, Balance,
Date of Original December 31, 2016 Interest January I, December 31,
Puroose Issue Issue Date Amount Rate 2016 Decreased 2016
Water Bonds 5/15/2002 $ 628,000 2/15/2017 $ 48,000 4.625 % $ 98,000 $ 50,000 $ 48,000
Water Bonds 4/15/2008 1,144,000 4/15/2017 110,000 3.375 4115/2018 110,000 3.500 4/15/2019 II 0,000 3.500
4/15/2020 114,000 3.500 554,000 II 0,000 444,000
Water Bonds 1111/2014 564,000 111112017 30,000 2.000 111112018 30,000 2.000 11/112019 40,000 2.000 111112020 45,000 2.000 111112021 60,000 2.000 111112022 60,000 2.000 111112023 60,000 2.000 1111/2024 60,000 2.500 111112025 60,000 2.500 111112026 59,000 2.500 534,000 30,000 504,000
$ 1,186,000 $ 190,000 $ 996,000
104
BOROUGH OF WALDWICK STATEMENT OF ACCRUED INTEREST PAYABLE ON LOANS
WATER UTILITY OPERATING FUND
Balance, January l, 2016
Increased by: Budget Appropriation
Interest on Loans
Decreased by:
Interest Paid on Water Loan
Balance, December 31, 20 16
STATEMENT OF RESERVE FOR TAX MAP WATER UTILITY OPERATING FUND
Balance, January 1, 2016
Balance, December 31, 2016
STATEMENT OF RESERVE FOR AMORTIZATION WATER UTILITY CAPITAL FUND
Balance, January 1, 2016
Increased by: 2016 Budget Appropriations:
Serial Bonds
Water Loans Cost oflmprovements:
Ordinance #5-95 Ordinance #2-02
Balance, December 31, 2016
$
105
12,276 696
$ 190,000
145,595
12,972
$
$
$
$
$
$
EXIDBIT D-24
13,063
28,098
41,161
29,546
11,615
EXHIBIT D-25
3,667
3,667
EXIDBIT D-26
6,151,546
348,567
6,500,113
Or d. No.
02-08 04-14 02-15
02-16
BOROUGH OF WALDWICK STATEMENT OF DEFERRED RESERVE FOR AMORTIZATION
WATER UTILITY CAPITAL FUND
Balance, Capital January I, Improvements
Improvement Description 2016 Authorized
Various Public Improvements & Acquisitions $ 3,873 Various Public Improvements & Acquisitions 307 Various Public Improvements 6,700
Various Public Improvements & Acquisitions $ 5,800
$ 10,880 $ 5,800
STATEMENT OF RESERVE FOR PAYMENT OF DEBT WATER UTILITY CAPITAL FUND
Balance, January I, 2016
Balance, December 31, 2016
106
EXHIBIT D-27
Balance, December 31,
2016
$ 3,873 307
6,700
5,800
$ 16,680
EXHIBIT D-28
$ 4,008
$ 4,008
Or d.
5-95 2-02 02-08 02-16
BOROUGH OF WALDWICK STATEMENT OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
WATER UTILITY CAPITAL FUND
Balance, Funded by
January I, 2016 Notes Budget
Improvement Description 2016 Authorizations Issued Appropriation
Various Impvts. & Acq. of Equipment $ 12,276 $ 12,276
Various Impvts. And Acq. Of Equipment 765 696
Various Public Improvements & Acquisitions 600 Various Public Improvements & Acquisitions - $ 114,700 $ 114,700
$ 13,641 $ 114,700 $ 114,700 $ 12,972
107
EXHIBIT D-29
Balance, December 31,
2016
$ 69 600
$ 669
BOROUGH OF WALDWICK
BERGEN COUNTY, NEW JERSEY
PART II
GOVERNMENT AUDITING SECTION
LERCH, VINCI & HIGGINS,LLP
DIETER 1'. LERCH, CPA, RMA . PSA
GARY J. VINCI, CPA, RMA , PSA
GARY W. HIGGINS , CPA, RMA. PSA
JEFFREY C. BLISS , CPA, RMA. PSA
PAULI. LERCH. CPA, RMA, PSA
DONNA L. JAPHET, CPA, PSA
JULIUS B. CONSONI , CPA, PSA
ANDREW D. PARENT E. CPA. RMA, !'SA
CERTIFIED PUBLIC ACCOUNTANTS REGISTERED MUNICIPAL ACCOUNTANTS
ELIZABETH A. SHJCK, CPA, RMA, PSA
ROBERT W. HAAG, CPA, PSA
DEBORAH K. LERCH, CPA, PSA
RALPH M. PICONE, CPA, RMA, PSA
DEBRA GOLLE, CPA
CINDY JANACEK, CPA, RMA
MARK SACO, CPA
SHERYL M. NICOLOSI, CPA
ROBERT AMPONSAH, CPA
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 AUDITOR'S REPORT
Honorable Mayor and Members of the Borough Council
Borough of Waldwick Waldwick, New Jersey
We have audited, in accordance with the 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 and audit requirements prescribed by the Division of Local Government Services, Depmtment of Community Affairs, State of New Jersey, the financial statements - regulatory basis of the Borough of Waldwick as of and for the year ended December 3 I, 20 16, and the related notes to the financial statements, and have issued our repmt thereon dated April 25 , 2017. Our report on the financial statements - regulatory basis was modified to indicate that the financial statements were not prepared in accordance with accounting principles generally accepted in the United States of America but rather prepared in accordance with the regulatory basis of accounting prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, which is a basis of accounting other than accounting principles generally accepted in the United States, to meet the financial reporting requirements of the State of New Jersey for municipal government entities as described in Note 1.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Borough of Waldwick'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 financial statements but not for the purpose of expressing an opinion on the effectiveness of the Borough of Waldwick's internal control. Accordingly, we do not express an opinion on the effectiveness of the Borough of Waldwick' 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 Borough '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.
17-17 ROUTE 208 • FAIR LAWN, NJ 07410• TELEPHONE (20]) 791-7 100 • FACSIMILE (201) 791-3035
WWW.LVHCPA.COM
108
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. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Borough of Waldwick's 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and audit requirements as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey.
However, we noted certain matters that are not required to be reported under Government Auditing Standards that we reported to management of the Borough of Waldwick in Part lli of this report of audit entitled, "Letter of Comments and Recommendations".
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 Borough of Waldwick'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 Borough of Waldwick's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Fair Lawn, New Jersey April25, 2017
109
~.d;: 'rl};a:. ,(_c./ (}l!f:H, VINCI & H~, LLP Certified Public Accountants Registered Municipal Accountants
a~~-Registered Municipal Accountant RMA Number CR00411
BOROUGH OF WALDWICK SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS
FOR THE YEAR ENDED DECEMBER 31, 2016
Federal Grant CFDA Year Number
Note: This schedule is not subject to Single Audit as defined by U.S. Uniform Guidance.
Award Amount
2016 Grant
Receipts
110
Balance, January 1,
2016
$ $
Revenue Realized
Balance, December 31,
Expenditures Adjustment 2016
$ $ $ $
SCHEDULE A
(Memo Only) Cumulative
Expenditures
SCHEDULES
BOROUGH OF WALDWICK SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER3l, 2016
2016 Grant Balance, Balance, (Memo Only)
Grant Grant!Loan Receipts January 1, Revenue December31, Cumulative
State Grant Program Grant Number y,, Award (M<mQJ 2016 Realized Expended AdJustment 2016 Exoenditures
Clean Communities Grant 4900-765-1789000 2016 $ 21,901 $ 21,901 $ 14,313 $ 14,313 $ 14,313
2015 4,841 4,841 4,841 4,841
Body Armor Replacement Fund 1020-718-066-1020-00 I 2016 4,236 4,236 2015 2,100 2,100 885 $ 1,215 885
2014 2,103 s 2,103 2,103
Prior 5,064 261 261 4,803
Drunk Driving Enforcement Fund 1110-448031020-22 2016 16,310 16,310 16,310
2013 3,000 3,000 3,000
2012 15,140 9,318 9,318 5,822
Stormwater Management Grant 4840-150-05-7500 2010 1,469 1,469 1,469
Prior 17,012 8,792 8,792 8,220
Alcohol Education and Rehabilitation Fund 9735-760-060000-60 2016 7,153 7,153 7,153
2008 4,787 2,219 1,250 969 3,818
Recycling Grant N!A 2016 2,795 2,795 2,795 2,795 2,795
2014 1,061 1,061 1,061
Crime Prevention Grant NIA 2016 3,136 3,136 3,136
Department ofTransportation Rehabilitation of Hopper Avenue (Ord. 16-2016) 16-480-078-6320 2016 150,000 150,000 150,000
Rehabilitation of Hewson Avenue (Ord. 11-2015) 15-480-078-6320-AL5-601 0 2015 149,000 148,227 149,000 148,227 773 148,227
Rehabilitation of Walter Hammond Place (Ord. 15-2014) 14-480-078-6320-ALW-60 I 0 2014 125,000 24,361 $ 24,361 100,639
NJ Department of Environmental Protection NJ Environ. Infrastructure Loans - General Capital - Ord. 1-09 4800-504-993150-60 2011 35,056 2,933 2,933 32,123
$ 204,517 $ 200,648 $ 172,311 $ 24,361 ~493
NIA- Not Available
Note: This schedule is not subject to Single Audit in accordance with New Jersey OMB Circular 15-08.
Ill
BOROUGH OF WALDWICK NOTESTOTHESCHEDULESOFEXPENDITURESOF STATE FINANCIAL ASSISTANCE YEAR ENDED DECEMBER 31, 2016
NOTE 1 GENERAL
The accompanying schedules present the activity of all state financial assistance programs of the Borough of Waldwick. The Borough is defined in Note 1(A) to the Borough's financial statements. All state financial assistance passed through other government agencies is included on the schedules of state financial assistance.
NOTE 2 BASIS OF ACCOUNTING
The accompanying schedules are prepared and presented using the regulatory basis of accounting as prescribed for municipalities by the Division of Local Government Services, Department of Community Affairs, State of New Jersey which differ in certain respects from accounting principles generally accepted in the United States of America (GAAP) applicable to local government units. This b(lsis of accounting is described in Note 1 to the Borough's financial statements.
NOTE 3 RELATIONSHIP TO FINANCIAL STATEMENTS
Amounts reported in the accompanying schedules agree with amounts reported in the Borough's financial statements. Financial assistance revenues are reported in the Borough's financial statements on a basis of accounting described above as follows:
Current Fund
General Capital Fund
$
$
47,512 $
150 000
47,512
150,000
197,512 """$ ~~1~97"",5;,;;1,;;c2
NOTE 4 RELATIONSIDP TO FEDERAL AND STATE FINANCIAL REPORTS
Amounts reported in the accompanying schedules may not necessarily agree with the amounts reported in the related federal and state financial reports due to timing differences between the Borough's fiscal year and grant program year.
112
BOROUGH OF WALDWICK NOTESTOTHESCHEDULESOFEXPENDITURESOF STATE FINANCIAL ASSISTANCE YEAR ENDED DECEMBER 31,2016
NOTE 5 STATE LOANS OUTSTANDING
The Borough's state loans outstanding at December 31, 2016, which are not required to be reported on the schedules of expenditnres of state financial assistance, are as follows:
Loan Program
NJ Environmental lnfrastructnre Trust Loan Water Supply Rehabilitation Loans- 2000
NJ Environmental Infrastructure Trust Loan Water Supply Rehabilitation Loans- 20 I 0
NJ Environmentallnfrastructnre Trust Loan Sanitary Sewer Improvement Loans - 2011
113
$ 211,308
862,428
127,108
$ 1,200,844
BOROUGH OF WALDWICK SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Part I- Summary of Auditor's Results
Financial Statements
Type of auditors' report issued on financial s.tatements
Internal control over fmancial reporting:
I) Material weakness( es) identified
2) Significant deficiency(ies) that are not considered to be material weakness( es )?
Noncompliance material to the financial statements noted?
Federal Awards Section- NOT APPLICABLE
State Awards Section- NOT APPLICABLE
Unmodified
_____ yes _ _.;:_:X:.__no
_____ yes --"X"---_none
_____ yes --"X-=-_ no
114
BOROUGH OF WALDWICK
BERGEN COUNTY, NEW JERSEY
PART ill
SUPPLEMENTARY DATA
LETTER OF COMMENTS AND RECOMMENDATIONS
FOR THE YEAR ENDED DECEMBER 31,2016
BOROUGH OF WALDWICK SUPPLEMENTARY DATA
Comparative Schedule of Tax Rate Information
Tax Rate
Apportionment of Tax Rate Municipal LibraJY Municipal Open Space County Local School
Assessed Valuation
2016
2015
2014
Comparison of Tax Levies and Collection Currently
2016
$2.602
.522
.032
.005
.242 1.801
$1,574,059,700
2015 2014
$2.572 $2".510
.522 .521
.032 .032
.005 .005
.237 .226 1.776 1.726
$1 561,824,600
$_1.558 06~,500
A study of this tabulation could indicate a possible trend in future tax levies. A decrease in the percentage of current collection could be an indication of a probable increase in future tax levies.
Percentage
of
Year TaxLevv Cash Collections Collection
2016 $ 41,089,028 $ 40,732,694 99.13%
2015 40,439,563 40,099,921 99.16%
2014 39,223,002 38,766,794 98.84%
]]5
BOROUGH OF WALDWICK SUPPLEMENTARY DATA
Delinquent Taxes and Tax Title Liens
This tabulation includes a comparison, expressed in percentage, of the total of delinquent taxes in relation to the tax levies of the last three years.
Total Percentage
December 31 Delinquent Tax Title Delinquent of
Year Taxes Liens Taxes Tax Levy
2016 $ 318,037 $ 1,690 $ 319,727 0.78%
2015 276,561 790 277,351 0.69%
2014 373,314 373,314 0.95%
Property Acquired by Tax Title Lien Liquidation
The value of property acquired by liquidation of tax title liens on December 31, on the basis of the last assessed valuation of such properties, was as follows:
Comparison of Water Utility Levies
Year Amount
2016 $35~10 2015 35,510 2014 35,510
2016 2015 2014
$1,940,573 1,929,888 1,830,712
* Includes collections of prior years receivables.
116
Collections*
$1,947,310 1,931,732 1,825,215
BOROUGH OF WALDWICK SUPPLEMENTARY DATA
OFFICIALS IN OFFICE
The following officials were in office during the period under audit:
Thomas A. Giordano Andrew Brennecke Gregor Bjork Deborah Dellavechia Charles Farricker Joseph Oravetz Donald Sciolaro Andrew Tatarenko Colleen Ennis
Paula J aegge
Angela Mattiace Mark Messner Joseph Mysliwiec John O'Dwyer Allison Blau Craig Bossong Bernard Mirandi
Mayor Council President Councilman Councilwoman Councilman Councilman Councilman Borough Administrator Chief Financial Officer, Collector- Treasurer Supervisor of Water Consumer Accounts Tax Search Officer Borough Clerk Officer for Searches for Municipal Improvements Tax Assessor Police Chief Construction Code Official Magistrate Court Administrator Attorney Engineer
Corporate Surety
A A
(A) Public employees blanket bond in the amount of$1,000,000 insured by Municipal Joint Insurance Fund.
117
BOROUGH OF WALDWICK SUPPLEMENTARY DATA
SCHEDULE OF FINDINGS OF NONCOMPLIANCE
Current Year Findings
Our audit noted that certain municipal departments ordered goods or services prior to the issuance of a purchase order. It is recommended that procedures be enhanced to ensure that goods or services be ordered only after a purchase order has been executed.
Our audit of Other Trust Fund reserves revealed certain escrow and police outside duty vendor account balances were in a deficit position at year end. It is recommended that escrow and police outside duty vendor accounts be reviewed and any deficit account balances be cleared of record.
Our audit of Payroll Agency bank reconciliations revealed that the reconciled cash balance was not in agreement with the general ledger balance. In addition numerous old outstanding checks remained on the reconciliation at year end. It is recommended that Payroll Agency bank account cash balances be in agreement with general ledger account balances and reconciling items be reviewed and cleared of record.
Contracts and Agreements Required to be Advertised for NJS 40A: 11-4
NJS 40A: 11-4 states "Every contract or agreement, for the perfmmance of any work or the furnishing or hiring of any materials or supplies, the cost or the contract price whereof is to be paid with or out of public funds not included within the tenns of Section 3 of this act, shall be made or awarded only after public advertising for bids and bidding therefore, except as is provided otherwise in this act or specifically by any other law. No work, materials or supplies shall be undertaken, acquired or furnished for a sum exceeding in the aggregate $40,000, except by contract or agreement. n
The Governing Body of the Municipality has the responsibility of detennining whether the expenditures in any category will exceed the bid threshold within the fiscal year. Where question arises as to whether any contract or agreement tnight result in violation of the statute, the Borough Counsel's opinion should be sought before a commitment is made.
The minutes indicate that bids were requested and awarded by public advertising for the following items:
Landscape Maintenance ADA Door Operator Project Hewson Ave. Roadway Rehabilitation Project IRI Storm Water Drainage Improvement Project Operation of Pool Concession Stand
Purchase of Street Sewer Purchase of Ford Vehicle Solid Waste Collections Comingled Recycling Collections
The minutes indicate that resolutions were adopted and advertised, authorizing the awarding of contracts or agreements for "Professional Services" per N.J.S. 40A: 11-5.
Inasmuch as the system of records did not provide for an accumulation of payments for categories for the performance of any work or the furnishing or hiring of any materials or supplies, the results of such an accumulation could not reasonably be ascertained. Disbursements were reviewed, however, to detennine whether any clear-cut violations existed.
Our examination of expenditures did not reveal any individual payments, contracts or agreements in excess of the bid threshold "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 provisions ofN.J.S. 40A: 11-6.
118
BOROUGH OF WALDWICK SUPPLEMENTARY DATA
Collection oflnterest on Delinqnent Taxes and Assessments
The statute provides the method for authorizing interest and the maximum rates to be charged for the non-payment of taxes or assessments on or before the date when they would become delinquent.
The Governing Body on January 1, 2016 adopted the following resolution authorizing interest to be charged on delinquent taxes:
"Resolved that in accordance with N.J.S. 54:4-67, the rate of interest to be charged for nonpayment of taxes or assessments on or before the date when they would become delinquent is hereby fixed at eight percent (8%) per annum on the first $1,500 of the delinquency and eighteen percent (18%) per annum on any amount in excess of$1,500. The Borough hereby grants a grace period often days after that time, taxes will be delinquent and interest will be calculated from the first day that taxes were actually due."
"WHEREAS, Chapter 75 of Law 1991 made changes to certain portions ofN.J.S.A. 54:4 & 5 to allow a municipality to employ a year end penalty for those accounts with tax arrears, interest or other municipal charges to charge a 6% penalty."
"NOW, THEREFORE, BE IT RESOLVED, that the Mayor and Council of the Borough of Waldwick hereby approves this penalty."
It appears from an examination of the Collector's record that interest was collected in accordance with the foregoing resolution.
Delinqnent Taxes and Tax Title Liens
The last tax sale was held on June 15, 2016.
h1spection of tax sale certificates on file revealed that all tax sale certificates were available for audit.
The Borough owns one tax title lien in 2016 and 2015, and did not own a tax title lien in 2014.
119
BOROUGH OF WALDWICK SUPPLEMENTARY DATA
RECOMMENDATIONS
It is recommended that:
1. Procedures be enbanced to ensure that goods or services be ordered only after a purchase order has been executed.
2. Escrow and police outside duty vendor accow1ts be reviewed and any deficit account balances be cleared of record.
3. Payroll Agency bank account cash balances be in agreement with general ledger accormt balances and reconciling items be reviewed and cleared of record.
Status of Prior Years' Audit Findings/Recommendations
A review was performed on all prior year recommendations and corrective action was taken on all.
120