2016 South Orange Municipal Budget - Que Pasa?
The municipal budget was introduced by the BOT on June 28. The tax increase is 1.9%. The budget is posted on the Village website.
For 2016, $600,000 of surplus was used. It went from $850,000 in 2105 to $250,000 for 2016. It was $1,875,000 in 2011.
By way of comparison, Maplewood's tax increase was 1.97%. It increased its surplus from $800,000 in 2015 to $2,000,000 in 2016.
We're hurting. $250,000 in surplus is extremely low. The Village had to use $600,000 in surplus to bring in the tax increase to under 2%. I've asked Mr. Lewis to post a summary of the factors that drove the budget.
http://southorange.org/DocumentCenter/Home/View/695
Thank you @cramer for posting this. Someone just asked me where it was posted. I left the meeting when it was being discussed as it ran very late.
FilmCarp said:
Man, where can we tighten our belts? What can go? This is tough.
It's extremely tough. One of the reasons that it was so difficult this year, and this comes from what was reported in the News-Record, is that there was a delay in getting Third/Valley completed. The PILOT on that will be $570,000 when fully occupied. But even with that, it's still going to be tough.
The BOT is faced with some difficult decisions. If it cuts, where does it cut? Additional revenues can only come from development/redevelopment, and there is a lot of opposition to redevelopment.
FilmCarp said:
Man, where can we tighten our belts? What can go? This is tough.
Tau.
Morganna said:
FilmCarp said:
Man, where can we tighten our belts? What can go? This is tough.
Tau.
We've had some doozies. Tau pales in comparison.
A few years ago we hired a third person in the IT Dept. to do the work for Maplewood. The idea at the time was that SO would do IT work for other municiaplities and the IT Dept. would be a revenue generator. Our revenue from Maplewood is $57,000. I don't think we break even. We don't do any work for other municipalities.
cramer said:
Morganna said:
FilmCarp said:
Man, where can we tighten our belts? What can go? This is tough.
Tau.
We've had some doozies. Tau pales in comparison.
A few years ago we hired a third person in the IT Dept. to do the work for Maplewood. The idea at the time was that SO would do IT work for other municiaplities and the IT Dept. would be a revenue generator. Our revenue from Maplewood is $57,000. I don't think we break even. We don't do any work for other municipalities.
I read that the sculpture belongs to the people of South Orange so I'm putting in a call tomorrow to get a bid.
http://stormking.org/
cramer said:
The municipal budget was introduced by the BOT on June 28. The tax increase is 1.9%. The budget is posted on the Village website.
For 2016, $600,000 of surplus was used. It went from $850,000 in 2105 to $250,000 for 2016. It was $1,875,000 in 2011.
By way of comparison, Maplewood's tax increase was 1.97%. It increased its surplus from $800,000 in 2015 to $2,000,000 in 2016.
We're hurting. $250,000 in surplus is extremely low. The Village had to use $600,000 in surplus to bring in the tax increase to under 2%. I've asked Mr. Lewis to post a summary of the factors that drove the budget.
http://southorange.org/DocumentCenter/Home/View/695
It would be interesting to know: a) what was never placed in the budget in the first place and deferred (as opposed to what was put in then got whittled down and/or taken out to get under the 2%) and, b) what future capital costs await but not yet finalized and expected to be introduced in the next 1-5 years.
On a related note: has SO refinanced or repackaged of late?
Morganna said:
cramer said:
Morganna said:
FilmCarp said:
Man, where can we tighten our belts? What can go? This is tough.
Tau.
We've had some doozies. Tau pales in comparison.
A few years ago we hired a third person in the IT Dept. to do the work for Maplewood. The idea at the time was that SO would do IT work for other municiaplities and the IT Dept. would be a revenue generator. Our revenue from Maplewood is $57,000. I don't think we break even. We don't do any work for other municipalities.
I read that the sculpture belongs to the people of South Orange so I'm putting in a call tomorrow to get a bid.
http://stormking.org/
This was raised when the sculpture was first installed and we were informed it can only be DONATED and cannot be sold. The website created during the fiasco is still out there and has the background of the $170,000 project at http://www.oocities.org/theunofficaltonysmithproject/index.html
ctrzaska said:
cramer said:
The municipal budget was introduced by the BOT on June 28. The tax increase is 1.9%. The budget is posted on the Village website.
For 2016, $600,000 of surplus was used. It went from $850,000 in 2105 to $250,000 for 2016. It was $1,875,000 in 2011.
By way of comparison, Maplewood's tax increase was 1.97%. It increased its surplus from $800,000 in 2015 to $2,000,000 in 2016.
We're hurting. $250,000 in surplus is extremely low. The Village had to use $600,000 in surplus to bring in the tax increase to under 2%. I've asked Mr. Lewis to post a summary of the factors that drove the budget.
http://southorange.org/DocumentCenter/Home/View/695
It would be interesting to know: a) what was never placed in the budget in the first place and deferred (as opposed to what was put in then got whittled down and/or taken out to get under the 2%) and, b) what future capital costs await but not yet finalized and expected to be introduced in the next 1-5 years.
On a related note: has SO refinanced or repackaged of late?
SO did refinance in 2015. In addition to taking advantage of lower interest rates, the bonds were sold at a premium of $39,540 which is shown as revenue in 2016.
SOPAC continues to drain our resources to the point that the only way we can keep up is by PILOT projects that give away the School Portion of our taxes.
I have been trying, unsuccessfully, for a few years, to have the budget list the PILOT amounts for each PILOTed property. The only thing that is shown in the budget is the total of all PILOTs. Maplewood does list each PILOTed property.
eta - My recollection is that many years ago SO did list PILOTs in the budget. The purpose of listing PILOTs, in addition to transparency, is that it might help people understand how much revenue is generated by PILOTs.
It's not too late to do this. The budget hasn't been finalized yet.
The Maplewood Budget presentation offers much more information to Maplewood residents. I hope that South Orange adopts the same format in the future.
The Maplewood Budget offers the following:
- User Friendly Budget Section - Property Tax Breakdown which shows the total taxes including Schools and County
- User Friendly Budget - Structural Imbalances
- User Friendly Budget Section - Assessed Property Valuations, Exempt Property and Property Tax Appeals
- User Friendly Budget Section - Health Benefits
- User Friendly Budget Section - Accumulated Absence Liability
These are all located at the beginning of the Budget.
http://www.twp.maplewood.nj.us/DocumentCenter/View/2321
cramer said:
The Maplewood Budget presentation offers much more information to Maplewood residents. I hope that South Orange adopts the same format in the future.
The Maplewood Budget offers the following:
- User Friendly Budget Section - Property Tax Breakdown which shows the total taxes including Schools and County
- User Friendly Budget - Structural Imbalances
- User Friendly Budget Section - Assessed Property Valuations, Exempt Property and Property Tax Appeals
- User Friendly Budget Section - Health Benefits
- User Friendly Budget Section - Accumulated Absence Liability
These are all located at the beginning of the Budget.
http://www.twp.maplewood.nj.us/DocumentCenter/View/2321
N. J. state law, adopted in 2015 for municipal budgets beginning in 2016, requires the use of User Friendly Budgets.
http://www.nj.gov/dca/divisions/dlgs/lfns/15/2015-09.pdf
John Gross used to create a Powerpoint deck that highlighted the biggest drivers of the budget, but that hasn't been done in quite a while (and doesn't appear to be on the website any longer)
michaelgoldberg said:
John Gross used to create a Powerpoint deck that highlighted the biggest drivers of the budget, but that hasn't been done in quite a while (and doesn't appear to be on the website any longer)
It hasn't been posted on the website for a few years, even before the changeover to the new website.
I believe Maplewood had the one time benefit of selling the PO site. Without that, we would be in same boat.
cramer said:
The municipal budget was introduced by the BOT on June 28. The tax increase is 1.9%. The budget is posted on the Village website.
For 2016, $600,000 of surplus was used. It went from $850,000 in 2105 to $250,000 for 2016. It was $1,875,000 in 2011.
By way of comparison, Maplewood's tax increase was 1.97%. It increased its surplus from $800,000 in 2015 to $2,000,000 in 2016.
We're hurting. $250,000 in surplus is extremely low. The Village had to use $600,000 in surplus to bring in the tax increase to under 2%. I've asked Mr. Lewis to post a summary of the factors that drove the budget.
http://southorange.org/DocumentCenter/Home/View/695
yahooyahoo said:
I believe Maplewood had the one time benefit of selling the PO site. Without that, we would be in same boat.
cramer said:
The municipal budget was introduced by the BOT on June 28. The tax increase is 1.9%. The budget is posted on the Village website.
For 2016, $600,000 of surplus was used. It went from $850,000 in 2105 to $250,000 for 2016. It was $1,875,000 in 2011.
By way of comparison, Maplewood's tax increase was 1.97%. It increased its surplus from $800,000 in 2015 to $2,000,000 in 2016.
We're hurting. $250,000 in surplus is extremely low. The Village had to use $600,000 in surplus to bring in the tax increase to under 2%. I've asked Mr. Lewis to post a summary of the factors that drove the budget.
http://southorange.org/DocumentCenter/Home/View/695
Thanks. I was wondering how Maplewood was able to add so much to its surplus. We don't have a post office to sell.
cramer said:
yahooyahoo said:
I believe Maplewood had the one time benefit of selling the PO site. Without that, we would be in same boat.
cramer said:
The municipal budget was introduced by the BOT on June 28. The tax increase is 1.9%. The budget is posted on the Village website.
For 2016, $600,000 of surplus was used. It went from $850,000 in 2105 to $250,000 for 2016. It was $1,875,000 in 2011.
By way of comparison, Maplewood's tax increase was 1.97%. It increased its surplus from $800,000 in 2015 to $2,000,000 in 2016.
We're hurting. $250,000 in surplus is extremely low. The Village had to use $600,000 in surplus to bring in the tax increase to under 2%. I've asked Mr. Lewis to post a summary of the factors that drove the budget.
http://southorange.org/DocumentCenter/Home/View/695
Thanks. I was wondering how Maplewood was able to add so much to its surplus. We don't have a post office to sell.
Nope, only a historic building. Our Village Hall.
I may be wrong but I believe the sale of the Maplewood Post Office site, after clean-up concessions and the requirement of upgrading adjacent sewer lines, produced little income immediately and will eventually be, at best, a wash. South Orange could sell SOPAC but it has little value and the Village is still on the hook for the construction financing.
truth said:
I may be wrong but I believe the sale of the Maplewood Post Office site, after clean-up concessions and the requirement of upgrading adjacent sewer lines, produced little income immediately and will eventually be, at best, a wash. South Orange could sell SOPAC but it has little value and the Village is still on the hook for the construction financing.
And for that reason I will purchase tickets to the David Crosby appearance. I want to do my part to defray those costs. Maybe they can start charging for entrance to Town Hall meetings held in the building.
Morganna said:
truth said:
I may be wrong but I believe the sale of the Maplewood Post Office site, after clean-up concessions and the requirement of upgrading adjacent sewer lines, produced little income immediately and will eventually be, at best, a wash. South Orange could sell SOPAC but it has little value and the Village is still on the hook for the construction financing.
And for that reason I will purchase tickets to the David Crosby appearance. I want to do my part to defray those costs. Maybe they can start charging for entrance to Town Hall meetings held in the building.
The revenues from ticket sales don't go to SO to help pay the costs of the construction financing, which the Village assumed in 2013 or 2014. They do go to SOPAC to help offset operating expenses. The Village still gives SOPAC money every year to help offset the operating budget shortfall. I have accepted the fact that SOPAC will need help from the Village probably for as long as SOPAC exists. It's a wonderful asset to the Village.
Having said that, there is no way to escape the fact that it is a drain on Village finances, which is becoming more and more apparent.
The financial contribution by the Village to SOPAC is not a line item. It's included in the Recreation Dept. budget.
True. But how the money is reflected in the budget and surplus could be a different matter.
truth said:
I may be wrong but I believe the sale of the Maplewood Post Office site, after clean-up concessions and the requirement of upgrading adjacent sewer lines, produced little income immediately and will eventually be, at best, a wash. South Orange could sell SOPAC but it has little value and the Village is still on the hook for the construction financing.
cramer said:
ctrzaska said:
cramer said:
The municipal budget was introduced by the BOT on June 28. The tax increase is 1.9%. The budget is posted on the Village website.
For 2016, $600,000 of surplus was used. It went from $850,000 in 2105 to $250,000 for 2016. It was $1,875,000 in 2011.
By way of comparison, Maplewood's tax increase was 1.97%. It increased its surplus from $800,000 in 2015 to $2,000,000 in 2016.
We're hurting. $250,000 in surplus is extremely low. The Village had to use $600,000 in surplus to bring in the tax increase to under 2%. I've asked Mr. Lewis to post a summary of the factors that drove the budget.
http://southorange.org/DocumentCenter/Home/View/695
It would be interesting to know: a) what was never placed in the budget in the first place and deferred (as opposed to what was put in then got whittled down and/or taken out to get under the 2%) and, b) what future capital costs await but not yet finalized and expected to be introduced in the next 1-5 years.
On a related note: has SO refinanced or repackaged of late?
SO did refinance in 2015. In addition to taking advantage of lower interest rates, the bonds were sold at a premium of $39,540 which is shown as revenue in 2016.
Well, there goes that angle...
cramer said:
I have been trying, unsuccessfully, for a few years, to have the budget list the PILOT amounts for each PILOTed property. The only thing that is shown in the budget is the total of all PILOTs. Maplewood does list each PILOTed property.
eta - My recollection is that many years ago SO did list PILOTs in the budget. The purpose of listing PILOTs, in addition to transparency, is that it might help people understand how much revenue is generated by PILOTs.
It's not too late to do this. The budget hasn't been finalized yet.
There is absolutely no reason not to, even if the budget is finalized, though I agree it would be preferable to have the info centralized within the budget itself as an addendum if necessary.
Morganna said:
cramer said:
yahooyahoo said:
I believe Maplewood had the one time benefit of selling the PO site. Without that, we would be in same boat.
cramer said:
The municipal budget was introduced by the BOT on June 28. The tax increase is 1.9%. The budget is posted on the Village website.
For 2016, $600,000 of surplus was used. It went from $850,000 in 2105 to $250,000 for 2016. It was $1,875,000 in 2011.
By way of comparison, Maplewood's tax increase was 1.97%. It increased its surplus from $800,000 in 2015 to $2,000,000 in 2016.
We're hurting. $250,000 in surplus is extremely low. The Village had to use $600,000 in surplus to bring in the tax increase to under 2%. I've asked Mr. Lewis to post a summary of the factors that drove the budget.
http://southorange.org/DocumentCenter/Home/View/695
Thanks. I was wondering how Maplewood was able to add so much to its surplus. We don't have a post office to sell.
Nope, only a historic building. Our Village Hall.
Is the money from that sale already reflected in the budget numbers? I know they anticipate opening in 2017 but I'm not clear on the interim steps.
yahooyahoo said:
True. But how the money is reflected in the budget and surplus could be a different matter.
truth said:
I may be wrong but I believe the sale of the Maplewood Post Office site, after clean-up concessions and the requirement of upgrading adjacent sewer lines, produced little income immediately and will eventually be, at best, a wash. South Orange could sell SOPAC but it has little value and the Village is still on the hook for the construction financing.
Up front I believe net 1.155m was going into surplus and 100k to the AHTF. Subsequent moves I can't recall offhand (addl 100k for AH, etc) but could dig up if it matters. Without PO there would have still been a small increase.
The 2016 municipal budget hasn't even been introduced yet. I haven't been following the BOT meetings - has there been any mention of it? I did email a Village official and haven't received any response.