The 2014 local municipal budget summary shows a $727,483 increase over the 2013 budget. Key drivers of increased expenses include $915,000 for health insurance, $621,500 for salaries and wages, and $208,023 for debt service. Revenues are increased through $1,261,730 raised by local taxation, $395,119 in anticipated miscellaneous revenues, and $300,000 from available fund balance. Several items reduced the budget increase, including $-62,116 for the library appropriation and $-842,000 from accelerated Sandy reimbursements. The total tax levy and tax rate are increased to cover remaining budget needs.

3. 2014 Local Municipal Budget
p
g

4. 2014 Budget Summary
2014
2013
$ Diff
% Diff
Revenues
Fund Balance
2,800,000 3,043,750 -243,750 -8.01%
, ,
, ,
,
Local Revenues
17,978,703 18,007,084
-28,381 -0.16%
2,146,048 2,146,048
, ,
, ,
0.0%
State Aid
Grants
284,603
284,603
0.0%
q
750,000
,
950,000 -200,000 -21.0%
,
,
Delinquent Taxes
Library Tax Levy
3,816,785 3,878,901
-62,116 -1.6%
Local Tax Levy
y
44,934,394 43,672,664 1,261,730 2.89%
, ,
, ,
, ,
Totals 72,710,533 71,983,050
727,483 1.01%

5. Revenues

6. 2014 Budget Summary
g
y
2014
2013
$ Diff
% Diff
Appropriations
Salaries & Wages
28,623,600 28,002,100
621,500
2.22%
Other Expenses
22,556,435 21,287,373 1,269,062
5.96%
Statutory/Deferred
6,650,120
6,944,223
Grants
331,330
331,330
-
0.0%
Capital Imp. F d
C i lI
Fund
725,000
725 000
725,000
725 000
-
0.0%
0 0%
Debt Service
12,574,048 13,208,024
-294,103
-633,976
-4.24%
-4.80%

7. 2014 Budget Summary
g
y
2014
2013
$ Diff
% Diff
Appropriations
A
i i
R.U.T.
1,250,000
1,485,000
Totals 72,710,533 71,983,050
Local Taxation
Ratable Base
Tax Rate
-235,000 -15.8%
727,483
1.01%
1,261,730
2.89%
11,183,675,429 11,316,442,065 -132,766,636
-1.17%
44,934,394
40.18
43,672,664
38.60
1.579 4.09%

8. Appropriations

9. 2014 Anticipated Revenues
p
2013 Budget 2013 Realized 2014 Budget
Licenses
Li
Fees & Permits
Municipal Court
l
Int. & Costs on Taxes
Parking Regulations
Int. on Investments
Beach Fees
410,000
410 000
875,000
785,000
245,000
2,800,000
8,000
3,950,000
449,018
449 018
1,044,662
632,572
337,203
2,786,354
5,445
3,901,460
430,000
430 000
950,000
630,000
255,000
2,785,000
5,000
3,900,000
Rent/Sale of Property
190,000
170,299
170,000
Airport Fees
145,000
139,847
135,000

10. 2014 Anticipated Revenues
p
2013 Budget 2013 Realized 2014 Budget
Boat Ramp Fees
30,000
32,074
32,000
Aquatic & Fitness
1,000,000
1,064,289
1,025,000
Smoke Detectors
175,000
181,460
175,000
EMS
580,000
712,551
630,000
2,146,048
2,146,048
2,146,048
Construction Code
650,000
1,094,472
950,000
Upper Twp. Dispatch
222,789
222,789
222,789
Library- Contracted Services
LibraryLib
209,019
209 019
209,019
209 019
222,323
222 323
State Aid

11. 2014 Anticipated Revenues
p
2013 Budget 2013 Realized 2014 Budget
Library- Return to Taxpayer
LibraryLib
OCTD Staffing
Grants
G
Hurricane Sandy
Capital Funds
d
Capital Funds- Notes
FundsTotal Local Revenues
2013 Excess Revenue
Delinquent Taxes
1,140,951
1 140 951
25,000
284,603
284 603
842,000
600,000
3,124,325
20,437,735
1,140,951
1 140 951
25,000
284,603
284 603
842,000
600,000
3,124,325
21,146,447
708,712
1,593,766
1 593 766
25,000
284,603
284 603
418,500
300,000
3,124,325
20,409,354
950,000
1,110,747
750,000

12. 2014 Increases in Revenues
Amount to be raised by Taxation- City
Taxation-
$1,261,730
Misc. Revenues Anticipated
$395,119
Fund Balance
$300,000
Grants
$0.00
State Aid
$0.00
Amount to be raised by Taxation- Library
Taxation-
$-62,116
Receipts f
R i from Delinquent Taxes
D li
T
$-200 000
200,000
Sandy Anticipated Reimbursements
$-125 250
125,250
Sandy Accelerated Reimbursements
$-842,000
TOTAL BUDGET INCREASE
$727,483

13. History of Fund Balance
2005
2006
2007
2008
2009
Balance 1/1/FY
4,989,423
4,732,441
5,481,815
5,340,221
4,803,672
Utilized in
Budget
g
3,430,000
3,185,000
3,200,000
2,390,004
2,067,000
Balance
Remaining
1,559,423
1,547,441
2,281,815
2,950,217
2,736,672
% Used
68.75%
67.30%
58.37%
44.75%
43.03%
% Remaining
31.25%
32.70%
41.63%
55.25%
56.97%
Local Municipal
Budgets
% Remaining to
Budget
51,791,085 52,621,283 56,306,981 60,097,230 62,054,416
3.01%
2.94%
4.05%
4.91%
4.41%

14. History of Fund Balance
y
2010
2011
2012
2013
2014*
Balance
B l
1/1/FY
5,236,486
5 236 486
5,431,337
5 431 337
5,032,608
5 032 608
4,638,161
4 638 161
5,811,666
5 811 666
Utilized in
Budget
2,327,075
2,550,000
2,500,000
3,043,750
2,800,000
Balance
Remaining
2,909,411
2,881,339
2,532,608
1,594,411
3,011,666
% Used
44.44%
46.95%
49.68%
62.62%
48.18%
% Remaining
55.56%
53.05%
50.32%
34.38%
51.82%
Local Municipal
Budgets
63,938,949
68,840,928
68,021,825
70,907,950
72,710,533
% Remaining to
Budget
B d
4.55%
4.19%
3.72%
2.25%
4.14%
*Per AFS

15. History of Fund Balance
y

16. Fund Balance Remaining
g

17. How is Fund Balance Replenished?
Collecting Revenues in excess of what is
anticipated (MRA)
Misc.
Misc Revenues Not Anticipated (MRNA)
Collecting Taxes in excess of the anticipated %,
a.k.a. Reserve for Uncollected T
k R
f U ll
d Taxes (RUT)
Receipts from Delinquent Taxes (RDT’s)
Expired Appropriations from 2012
Canceled Appropriations/Accounts from 2013

18. Why leave a Fund Balance Reserve?
Stability of future operations and budgets
y
p
g
Fund Balance can be used to fund an unanticipated
emergency
A Reserve Provides Cash Flow for the Municipality
Revenues are not collected consistently during the fiscal
year
Payrolls exceed $1 million every 2 weeks
The Cit is the p i
Th City i th paying agent for all outside agencies:
t f ll t id
i
County, School, Library, SID’s
Key indicator to bond rating agencies

19. Total 2013 Tax Rate- 84.2 Cents
Rate-

20. What’s a Penny???
What s
A penny to the Municipal tax rate is a fraction of
the ratable base, in 2014 a penny to the O.C. tax
(
)
rate = $1,118,000 (Ratable base is 11.18 billion)
1/10 of a penny = $111,800
----------------------------------A penny to a taxpayer = $10 per $100,000 of
property, or $50 for a $500,000 home
The 2014 proposed local tax increase of 1.57 cents
means a $78.50 increase to a $500,000 home

21. Ratable Trends & Tax Revenue
Ratables
R bl
3,660,499,421
97,676,092
72.9
2003*
7,411,270,164
129,800,600
41.2
2004
7,549,955,663
138,685,499
41.6
2005
Years
Local T R
L l Tax Rate
2002
*Revaluation
Increase
I
7,774,231,834
7 774 231 834
224,276,171
224 276 171
43.2
43 2
2006
8,014,307,303
240,075,469
44.4
2007
8,249,356,764
235,049,461
46.5
2008*
12,740,485,933
88,478,300
33.2
2009
12,820,330,392
79,844,459
34.9
2010
12,852,616,046
12 852 616 046
32,285,654
32 285 654
35.9
35 9
2011
12,852,929,492
313,446
33.8
2012*
12,171,789,847
-681,139,645
35.6
2013*
11,316,442,065
-855,347,782
38.6
2014*
11,183,675,429
-132,766,636
40.18

22. Ratable Changes
$11,316,442,065
$11,183,675,429
$ - 132,766,636
2013 Ratable Base
2014 Ratable Base
(Decrease in Ratables)
$ - 15,521,600
, ,
$ - 183,623,201
$ - 15,267,536
5, 67,536
$ + 81,645,701
$ - 132 766 636
132,766,636
207 Tax Appeals from 2013
pp
2014 Compliance Plan (4,512)
Demos/Misc. Adjustments
e os/ sc. djust e ts
Added Assessments

23. 2014 Tax Rate Increase
2014 Proposed Budget
2014 “What if Budget
What if”
_ 44,934,394
44,934,394__
11,183,675,429
44,934,394__
44,934,394
11,316,442,065
= 40.18 cents
= 39.71 cents
Increase of 1.579 cents from
2013
Increase of 1.107 cents from
2013

24. Assessments & Your Taxes
$500k House that stayed the
same for 2014
$500k House with an average
reduction for 2014
2013
$500,000 x 38.6 = $1,930
2013
$500,000 x 38.6 = $1,930
2014
$500,000 x 40.18 = $2,009
2014
$459,300 x 40.18 = $1,845
Increase of $79.00
Decrease of $-85.00
$-

25. Sandy s Budget Impact
Sandy’s
2013 Budget
$3,625,000 Emergency Authorized in late 2012, which must be
p
paid down over a maximum of 5 y
years, or $725,000 per y
p year
$725,000 was budgeted on the expense side in 2013
$543,750 was budgeted as a revenue, taken out of fund balance
($725,000 x 75% = $543,750)
The $543,750 was realized and replenished to fund balance in
2013, plus another $842,000 in FEMA reimbursements
The remaining unspent balance of $198k in the emergency
account was also canceled in 2013

26. Sandy s Budget Impact
Sandy’s
2013 Budget
$3,625,000
-725,000
-842,000
-198,000
$1,860,000
Original Emergency Authorization
Statutory minimum pay down
Accelerated FEMA reimbursements
Canceled balance also used to pay down note
Outstanding Emergency Note 12/31/13

27. Sandy s Budget Impact
Sandy’s
2014 Budget
$1,860,000 Outstanding Emergency Note 12/31/13
$ 465,000 Statutory minimum appropriation (1/4th of note)
$ 418,500 Anticipated Revenue (90% of appropriation)
$ 725,000 2013 Budget Appropriation
$ 465,000 2014 Budget Appropriation
$-260 000 Appropriation Reduction due to faster note pay down
260,000 A
i i R d i d
f
d

28. Capital Budget Impact
2013 Budget
$3,124,325 Was in the budget as Reserve for Debt
Service/Payment of Notes….mostly made up of:
$1,950,000 Final payment from the Library for the expansion
$1,084,750 FEMA reimbursement to pay off Waverly Geotubes
from the November 2009 Nor’easter
These two items will not be in the 2014 budget, but are assumed at
the moment for a more realistic comparison of the two budgets.
By Introduction the 2014 budget will do down by approx. $3 mil.

29. 2014 Local Municipal Budget
End of Workshop #1

30. 2014 Local Municipal Budget
Workshop #2

31. 2014 Increases in Expenses
Health Insurance
$915,000
Salaries & Wages
$621,500
Debt Service
$208,023
General Liability Insurance
$152,650
Departmental Other Expenses
$99,160
Citywide Expenses
$83,050
Utilities
$62,000
City Clerk Other Expense
$57,100
$57 100
FICA/Unemployment
$10,800
Grants
-
Capital Improvement Fund
-
Workers Compensation Insurance
$-8,950
Trash/Tipping/Recycling
$-28,832
Pensions
$-44,903

32. 2014 Increases in Expenses
p
Library Appropriation
$-62,116
Reserve for Uncollected Taxes
$-235,000
Hurricane Sandy Emergency
$-260,000
260 000
Sandy Accelerated Note Pay Down
$-842,000
TOTAL BUDGET INCREASE
$727,483
$727 483

33. 2014 Increases in Revenues
Amount to be raised by Taxation- City
Taxation-
$1,261,730
Misc. Revenues Anticipated
$395,119
Fund Balance
$300,000
Grants
$0.00
State Aid
$0.00
Amount to be raised by Taxation- Library
Taxation-
$-62,116
Receipts f
R i from Delinquent Taxes
D li
T
$-200 000
200,000
Sandy Anticipated Reimbursements
$-125 250
125,250
Sandy Accelerated Reimbursements
$-842,000
TOTAL BUDGET INCREASE
$727,483

34. History of Pension Costs
2003
2004
2005
PFRS
’08=100%
235,000
423,000
708,521 1,195,000 1,783,316 2,253,268
PERS
’08=80%
71,000
76,000
148,628
287,000
374,558
660,558
CPFRS
27,000
18,000
1,000
1,000
7,500
7,500
333,000
517,000
TOTALS
VARIANCE
2006
2007
2008
857,150 1,483,000 2,165,374 2,921,326
+184,000 +340,150 +625,850 +682,374 +755,952
,
,
,
,
,

35. History of Pensions
2009
PFRS
2010
2011
2012
2013
2014
2,552,644 2,633,413 2,941,637 2,695,260 2,921,058 2,825,014
Fully Funded
In 2008
PERS
927,178 1,037,909 1,247,564 1,337,245 1,270,288 1,315,406
Fully Funded
In 2009
CPFRS
TOTALS
Percent
Variance
8,800
8,800
3,488,622 3,680,122
19.4%
+567,296
+567 296
5.5%
8,800
9,645
8,977
-
4,198,001 4,042,150 4,200,323 4,140,420
14.1%
+191,500 +517 879
+191 500 +517,879
-3.7%
3.7%
-1.4%
-155 884 +158,173
155,884 +158 173
-59 903
59,903

36. History of Health Insurance
% Budget
Increase
% Expended
Increase
Budgeted
Expended
2004
4,540,000
4 540 000
4,559,766
4 559 766
2005
5,045,000
4,409,018
11.1%
-3.3%
2006
4,550,000
4,542,271
-9.8%
3.0%
2007
5,170,000
5,485,005
13.6%
20.75%
2008
6,019,200
6,009,843
16.4%
9.57%
*2009
5,853,000
5,256,869
-2.76%
-12.53%
2010
5,866,000
5,631,290
0.22%
7.12%
2011
6,115,000
6 115 000
5,903,994
5 903 994
4.2%
4 2%
4.8%
4 8%
2012
6,597,000
6,408,801
7.9%
8.6%
*2013
6,125,000
, ,
5,973,089
, ,
-7.15%
-6.8%
2014
7,040,000
*City Changed Health Benefit Programs
14.94%

37. 2013 Debt Service & Cap ta
0 3 ebt Se v ce Capital
Bond Principal
p
Bond Interest
Interest on Notes (BAN’s)
Green Acres Trust Program
TOTAL DEBT SERVICE
5% Down payment for Ordinances
CIF Small Equipment Ordinance
TOTAL CAPITAL
IMPROVEMENT FUND
$ , ,
$7,525,000
$1,827,550
$427,250
$54,822
$9,834,622
$600,000
$125,000
$725,000

38. Total Debt Service Annually
Year
2008
2009
2010
2011
2012
2013
2014
Debt Service
% Increase
$7,125,000
4.2%
$ , ,
$7,561,315
6.1%
$7,812,967
3.3%
$7,975,087
$7 975 087
2.1%
2 1%
$8,320,220
4.3%
$9,626,599
15.7%
$9,834,622
, ,
2.1%
AVERAGE = 5.4%

39. History of Library Appropriation

40. History of Full Time Staffing
2003 2004 2005 2006 2007 2008
Administration
13
13
13
12
12
12
Community Services
30
27
27
26
25
16
Community Development
20
20
20
21
-
-
-
-
-
-
26
25
Planning & Engineering
Legal
-
Statutory Offices
11
10
10
10
10
10
Financial Management
16
16
15
15
16
15
Police Department
78
78
76
76
76
72
Fire & Rescue
66
66
66
66
66
64
Public Works
60
58
55
54
43
50
Grant Positions
3
3
3
3
-
-
297
291
285
283
274
264
TOTAL

41. History of Full Time Staffing
2009 2010 2011 2012 2013 2014
Administration
12
12
15
15
16
20
Community S i
C
i Services
16
16
31
30
30
-
Community Operations
-
-
-
-
-
81
Planning & Engineering
25
24
-
-
-
-
-
1
1
1
1
1
Statutory Offices
S
Offi
10
10
10
10
10
9
Financial Management
15
14
14
13
13
12
p
Police Department
72
72
71
72
71
70
Fire & Rescue
64
62
62
61
63
63
Public Works
50
50
46
50
50
-
-
-
-
-
-
-
264
261
250
252
254
256
Legal
Grant Positions
TOTAL

42. Department of Administration
2014 Budget reflects reorganization changes
Engineering went to Community Operations
New Division Public Relations & Information
Includes the POPS Orchestra
20 Full Time Personnel
7,758 PPT Hours
OE: up $19,910
$19 910
Includes offices of the Mayor, BA, HR,
Purchasing, OEM
Purchasing OEM, Capital Planning, IT, PR &
Planning IT
Information, Neighborhood & Social Services

43. Department of Community Operations
2014 Budget reflects reorganization changes
g
g
g
Engineering moved from Administration
All of the former Public Works Department
p
All of the former Community Services Department
except for Public Relations & Info, POPS, and
p
Neighborhood & Social Services
81 Full Time Personnel
56,858 PPT Hours (41,000 of which are at the A&F Center)
OE: up $62,250
$62 250

44. Department of Community Operations
Includes the Divisions of:
Community Operations Administration
Environmental Operations
Facility Maintenance
Field Operations
Fleet Maintenance
Aquatic & Fitness Center
Recreation & Leisure Programs
Music Pier Operations
Planning, Zoning, Municipal Code & Licensing
Construction Code
Engineering & Project Management

45. Department of Law
2014 Budget is down $12,000
$12 000
1 Full Time Solicitor and 1 Part Time
Prosecutor
OE: down $13,000 from 2013
S&W: up $1,000

46. Department of Financial Management
2014 Budget is up $49,300
$49 300
12 Full Time Personnel, down 1 from 2013
17,076
1 0 6 PPT Hours
H
OE: up $40,300 (increased contributions to Museum & Arts Center)
S&W: up $9,000
Includes Accounting & Payroll Tax Assessment
Payroll,
& Collection, Revenue Collection, Beach Fees,
Parking and Airport

47. Statutory Offices
y
City Clerk
3 Full Time Personnel, same as 2013
F ll
Personnel
1,040 PPT Hours
OE: up $57,100 due to Municipal Election Year
S&W: up $17,000 (currently overlap with pending retirement)
Municipal Court
6 Full Time Personnel, down 1 from 2013
2,912
2 912 PPT Hours (increased due to FT reduction)
H
OE: up $1,000
S&W: down $70,000
$70 000

48. Department of Fire & Rescue Services
2013 Budget is up $21,500
$21 500
59 Full Time Firefighters, same as 2013
3 Full Time Rescue EMT’s, same as 2013
F ll Ti R
EMT’
1 Full Time Clerical, same as 2013
OE: up $25,500
S&W: down $4,000
$4 000
This budget includes Lifeguard Operations

49. Department of Police Protection
2014 Budget is down $32,300
$32 300
58 Full Time Officers, same as 2013
12 Full Time Civilians, down 1 from 2013
F ll Ti Ci ili
d
f
9,212 PPT Hours
OE: down $39,300 (mostly due to replacing only
)
2 Police vehicles instead of 4)
S&W: up $7,000

50. 2014 Local Municipal Budget
p
g