city of rahway union county, new jersey...
TRANSCRIPT
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
E-1
E-2
E-3 E-4 F
A-4 A-5 A-6 A-7
A-8 A-9 A-10
CITY OF RAHWAY
TABLE OF CONTENTS
PART I- Report on Audit 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 Fund Statements of Changes in Fund Balance -Regulatory Basis-Assessment Trust Fund
Statements of Changes in Fund Balance- Regulatory BasisOther Trust Fund
Comparative Balance Sheets - Regulatory Basis - General Capital Fund Comparative Statements of Changes in Fund Balance- Regulatory Basis -
General Capital Fund Comparative Balance Sheets- Regulatory Basis- Water Utility Fund Comparative Statements of Operations and Changes in Fund Balance -
Regulatory Basis- Water Utility Operating Fund Comparative Statements of Changes in Fund Balance- 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 - Sewer Utility Fund Comparative Statements of Operations and Changes in Fund Balance-
Regulatory Basis- Sewer Utility Operating Fund Comparative Statements of Changes in Fund Balance- Regulatory Basis-
1-3
4-5
6 7-9
10-14 15-16
17
17 18
19 20-21
22
23 24 25
26-27
28
Sewer Utility Capital Fund 29 Statement of Revenues- Regulatory Basis- Sewer Utility Operating Fund 30 Statement of Expenditures- Regulatory Basis- Sewer Utility Operating Fund 31 Comparative Balance Sheets- Regulatory Basis -General Fixed Assets Account Group 32
Notes to the Financial Statements
Supplementary Schedules
Current Fund
Statement of Cash - Treasurer Statement of Change Funds Statement of Grants Receivable Statement of Due from State of New Jersey- Senior Citizen and Veterans Deductions
Statement of Taxes Receivable and Analysis of Property Tax Levy Statement of Tax Title Liens Statement of Property Acquired for Taxes
33-80
81 82 83
84 85 86 86
Exhibits
A-ll A-12 A-13 A-14 A-15 A-16 A-17 A-18 A-19 A-20 A-21 A-22 A-23 A-24 A-25 A-26 A-27 A-28
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 B-24
CITY OF RAHWAY
TABLE OF CONTENTS
Supplementary Schedules (Continued)
Current Fund
Statement of Revenue Accounts Receivable Schedule of Other Liens Receivable Statement of Due From Rahway Redevelopment Agency Statement of Deferred Charges- Special Emergency Statement of 2015 Appropriation Reserves Statement of Encumbrances Payable Statement of Accounts Payable Statement of Tax Overpayments Statement of Prepaid Taxes Statement of Reserve for Federal and State Grants- Unappropriated Statement of Appropriated Reserves for Grants Statement of County Taxes Payable Statement of Amount Due County for Added Taxes Statement of Local District School Taxes Payable Statement of Special Improvement District Taxes Payable Statement of Reserve for Tax Appeals Statement of Reserve for FEMA Reimbursements Statement of Reserve for Host Community Fees
Trust Fund
Statement of Cash and Investments Statement of Amount Due To State ofNew Jersey- Animal Control Fund Statement of Reserve for Animal Control Expenditures Statement of Due to Current Fund- Animal Control Fund Statement of Community Development Block Grants Receivable Statement of Loans Receivable- Community Development Trust Fund Statement of Deferred Loans Receivable- Community Development Trust Fund Statement of Encumbrances Payable- Community Development Trust Fund Statement of Reserve for Community Development Expenditures Statement of Reserve for Workers' Compensation Claims Statement of Reserve for Unemployment Compensation Claims Statement of Due from Current Fund- Self Insurance Trust Fund Statement of Due to State ofNew Jersey- Self Insurance Trust Fund Statement of Miscellaneous Deposits and Reserves Statement of Due from Current Fund- Other Trust Fund Statement of Other Liabilities Statement of Reserve for Payroll Deductions Payable Statement of Accrued Salaries and Wages Statement of Reserve for Flex Spending- Self Insurance Trust Fund Statement of Due to Current Fund- Community Development Trust Fund Statement of Due to General Capital Fund- Community Development Trust Fund Statement of Due from Other Trust Fund- Self Insurance Trust Fund
87 88 88 89
90-91 92 92 93 93 94 95 96 96 97 97 97 98 98
99 100 100 100 101 102 102 102 103 104 104 105 105 106 107 107 108 108 108 109 109 109
Exhibits
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 C-19 C-20 C-21
CITY OF RAHWAY
TABLE OF CONTENTS
Supplementary Schedules (Continued)
General Capital Fund
Statement of General Capital Cash - Treasurer Analysis of General Capital Cash Statement of Due from Current Fund Statement of Deferred Charges to Future Taxation- Funded Statement of Deferred Charges Unfunded Statement of Improvement Authorizations Statement of General Serial Bonds Statement of Grants Receivable Statement of Loans Receivable Statement of Bond Anticipation Notes Statement of Green Acres Loan Payable Statement of Department of Community Affairs Loan Payable Statement ofNew Jersey Redevelopment Authority Loan Payable Statement of Capital Improvement Fund Statement of Due from Rahway Redevelopment Agency Statement of Contracts Payable Statement of Reserve for Preliminary Expenses Statement of Reserve of Payment of Debt Statement of Deferred Charges- Cancelled Grants Receivable Statement of Bonds and Notes Authorized But Not Issued
Water Utility Fund
110 111-1!2
!13 113 114
115-116 117-119
120 121 122 123 123 123 123 124 124 124 125 125 126
D-5 Statement of Cash- Collector/Treasurer- Water Utility Cash 127 D-6 Analysis of Cash- Water Utility Capital Fund 128 D-7 Statement of Change Fund- Water Utility Operating Fund 129 D-8 Statement of Fixed Capital- Water Utility Capital Fund 129 D-9 Statement of Fixed Capital Authorized and Uncompleted- Water Utility Capital Fund 130 D-1 0 Statement of Consumer Accounts Receivable- Water Utility Operating Fund 131 D-11 Statement of Deferred Charges- Water Utility Operating Fund 131 D-12 Statement of 2015 Appropriation Reserves- Water Utility Operating Fund 132 D-13 Statement of Encumbrances Payable- Water Utility Operating Fund 133 D-14 Statement of Accounts Payable 133 D-15 Statement of Due From Water Utility Capital Fund- Water Utility Operating Fund 133 D-16 Statement of Due from/to Current Fund- Water Utility Operating Fund 134 D-17 Statement of Due to General Capital Fund- Water Utility Capital Fund 134 D-18 Statement of Due to Current Fund- Water Utility Capital Fund 134
CITY OF RAHWAY
TABLE OF CONTENTS
Exhibits
Supplementary Schedules (Continued)
Water Utility Fund
D-19 Statement oflmprovement Authorizations- Water Utility Capital Fund 135 D-20 Statement of Contracts Payable- Water Utility Capital Fund 136 D-21 Statement of Reserve for Amortization- Water Utility Capital Fund 136 D-22 Statement of Reserve for Deferred Amortization- Water Utility Capital Fund 136 D-23 Statement of Water Serial Bonds- Water Utility Capital Fund 137 D-24 Statement of Bond Anticipation Notes- Water Utility Capital Fund 138 D-25 Statement of Capital Improvement Fund- Water Utility Capital Fund 139 D-26 Statement of Accrued Interest Payable on Bonds and Notes- Water Utility
Operating Fund 139 D-27 Statement of Bonds and Notes Authorized But Not Issued- Water Utility Capital Fund 140
Sewer Utility Fund
E-5 Statement of Cash -Collector/Treasurer - Sewer Utility Cash 141 E-6 Analysis of Cash- Sewer Utility Capital Fund 142 E-7 Statement of Consumer Accounts Receivable- Sewer Utility Operating Fund 143 E-8 Statement of Deferred Charges- Sewer Utility Operating Fund 143 E-9 Statement of Fixed Capital- Sewer Utility Capital Fund 144 E-1 0 Statement of Fixed Capital Authorized and Uncompleted- Sewer Utility Capital Fund 145 E-ll Statement of Due from/to Current Fund- Sewer Utility Operating Fund 146 E-12 Statement of Due from Current Fund- Sewer Utility Capital Fund 146 E-13 Statement of Due from Water Utility Operating Fund- Sewer Utility Operating Fund 14 7 E-14 Statement of Due from/to Sewer Utility Operating Fund- Sewer Utility Capital Fund 14 7 E-15 Statement of Due from General Capital Fund- Sewer Utility Capital Fund 147 E-16 Statement of 2015 Appropriation Reserves - Sewer Utility Operating Fund 148 E-17 Statement of Encumbrances Payable- Sewer Utility Operating Fund 148 E-18 Statement of General Serial Bonds - Sewer Utility Capital Fund 149 E-19 Statement of Environmental Infrastructure Loan Payable- Sewer Utility Capital Fund 150 E-20 Statement of Bond Anticipation Notes- Sewer Utility Capital Fund 151 E-21 Statement of Improvement Authorizations- Sewer Utility Capital Fund 152 E-22 Statement of Contracts Payable- Sewer Utility Capital Fund 153 E-23 Statement of Capital Improvement Fund- Sewer Utility Capital Fund 153 E-24 Statement of Accrued Interest on Bonds and Loans- Sewer Utility Operating Fund 153 E-25 Statement of Reserve for Amortization- Sewer Utility Capital Fund 154 E-26 Statement of Reserve for Deferred Amortization 154 E-27 Statement of Reserve for Payment of Debt- Sewer Utility Capital Fund 154 E-28 Statement of Bonds and Notes Authorized But Not Issued- Sewer Utility Capital Fund 155
CITY OF RAHWAY
TABLE OF CONTENTS
PART II- Government Auditing Standards and Single Audit
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
Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by U.S. Uniform Guidance-Independent Auditor's Report
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 Summary Schedule of Prior-Year Audit Findings and Questioned Costs
PART III- Supporting Data and Letter of Comments and Recommendations
Comparative Statements of Operations and Changes in Fund Balance -Current Fund
Comparative Statements of Operations and Changes in Fund Balance -Water Utility Operating Fund
Comparative Statements of Operations and Changes in Fund Balance-Sewer Utility Operating Fund
Comparative Schedule of Tax Rate Information Comparison of Tax Levies and Collection Currently Delinqu~nt Taxes and Tax Title Liens Property Acquired by Tax Title Lien Liquidation Comparison of Water Utility Levies Comparison of Sewer Utility Levies Comparative Schedule of Fund Balance Officials in Office and Surety Bonds General Comments Recommendations
156-157
158-160
161 162-163
164-165
166-168 169
170
171
172 173 173 174 174 174 174 175 176
177-179 180
CITY OF RAHWAY
COUNTY OF UNION
PART I
REPORT ON AUDIT OF FINANCIAL STATEMENTS
AND SUPPLEMENTARY SCHEDULES
YEAR ENDED DECEMBER 31, 2016
LERCH, VINCI & HIGGINS,LLP . CERTIFIED PUBLIC ACCOUNTANTS REGISTERED MUNICIPAL ACCOUNTANTS
DIETER !'. LERCH. CPA, RMA, PSA
GARY J. VINCI, CPA. RMA, PSA
GARY W. HIGGINS. CPA. RMA. PSA
JEFFREY C. BUSS, CPA, RMA. PSA
PAUL l. LERCH, CPA, RMA, PSA
DONNA L. JAPHET. CPA. PSA
JULIUS B. CONSONl, CPA. PSA
ANDREW D. PARENTE. CPA. RMA. PSA
Honorable Mayor and Members of the City Council
City of Rahway Rahway, New Jersey
Report on the Financial Statements
INDEPENDENT AUDITOR'S REPORT
ELIZABETH A. SHICK, CPA. RMA, PSA
ROBERT W. HAAG. CPA, PSA
DEBORAH K. LERCH, CPA, I'SA
RALPH M. PICONE, CPA, RMA. PSA
DEBRA GOLLE. CPA
CINDY JANACEK, CPA, RMA
MARK SACO, CPA
SHERYL M . NICOLOSI, CPA, PSA
We have audited the accompanying balance sheets - regulatory basis of the various funds and account group of the City of Rahway, 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 free 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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the 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 (20 1) 791-7100 • FACSil'vlll..E (20 1) 79 1-3035
WWW.LVHCPA.COM
1
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opmwns.
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 City of Rahway 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 tbe 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 City of Rahway 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 City of Rahway 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 statement of revenues- regulatory basis and statement of 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 1.
Other Matters
Other Information
Our audit was conducted for the purpose of fonning an opinion on the financial statements of the City of Rahway as a whole. The supplementary schedules listed in the table of contents, schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), 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 City of Rahway.
2
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.
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 June 20, 2017 on our consideration of the City of Rahway'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 City of Rahway's internal control over financial reporting and compliance.
Fair Lawn, New Jersey June 20, 2017
3
CITY OF RAHWAY COMPARATIVE BALANCE SHEETS- REGULATORY BASIS- CURRENT FUND
AS OF DECEMBER 31, 2016 AND 2015
Reference
ASSETS
Cash A-4 Cash - Change Funds A-5 Grants Receivable A-6 Due from State of New Jersey- Senior Citizen
and Veterans Deductions A-7
Receivables with Full Reserves Taxes Receivable A-8 Tax Title Liens Receivable A-9 Property Acquired for Taxes (Assessed Value) A-10 Revenue Accounts Receivable A-ll Other Liens Receivable A-12 Due from Rahway Redevelopment Agency A-13 Due from Animal Control Fund B-6 Due from CDBG Trust Fund B-22 Due from Water Utility Operating Fund D-16 Due from Water Utility Capital Fund D-18 Due tfom Sewer Utility Operating Fund E-ll
Deferred Charges
Special Emergency Appropriation A-14
Total Assets
The Accompanying Notes are an Integral Part of these Financial Statements 4
20I6
$ I4,927,2IO $ I,395
370,644
53,93I
I5,353,I80
1,431,8IO 422,273
2,644,300 48,259
9,938 149,300 10,717 65,845
320,418 142,989
5,245,849
224,000
224,000
$ 20,823,029 $
EXHIBIT A Page I
20I5
I4,I46,039 I,295
39I,820
5I,725
I4,590,879
1,786,381 395,011
2,644,300 45,139 36,679 20,866 12,394 65,845
928,520
5,935,135
448,000
448,000
20,974,014
CITY OF RAHWAY COMPARATIVE BALANCE SHEETS- REGULATORY BASIS- CURRENT FUND
AS OF DECEMBER 31, 2016 AND 2015
Reference
LIABILITIES, RESERVES AND FUND BALANCE
Appropriation Reserves A-3, A-15 Encumbrances Payable A-16 Accounts Payable A-17 Tax Overpayments A-18 Prepaid Taxes A-19 Local School Taxes Payable A-24 County Taxes Payable A-23 Due to Other Trust Fund B-17 Due to Selflnsurance Trust Fund B-14 Due to General Capital Fund C-4 Due to Water Utility Operating Fund D-16 Due to Sewer Utility Operating Fund E-ll Due to Sewer Utility Capital Fund E-12 Reserve for Special Improvement District Taxes A-25 Reserve for Federal and Stale Grants- Unappropriated A-20 Reserve for Federal and Stale Grants- Appropriated A-21 Reserve for Tax Appeals A-26 Reserve for FEMA Reimbursements A-27 Reserve for Host Community Fees A-28
Reserve for Receivables A Fund Balance A-1
Total Liabilities, Reserves and Fund Balance
The Accompanying Notes are an Integral Part of these Financial Statements 5
2016
$ 1,737,105 $ 840,853 127,093 93,496
323,989 110,510
15,113 605,362
17,376 734,619 687,725
675,000 198,602
I ,780,249 I ,400,000
199,102
9,546,194
5,245,849 6,030,986
$ 20,823,029 $
EXHIBIT A Page2
2015
905,229 731,446 38,370
154,500 285,972
70,860 20,759
1,184,969 I 7,564
937,090
8,172 351,434 675,000 247,967
1,679,456 1,400,000
461,605 109,810
9,280,203
5,935,135 5,758,676
20,974,014
EXHIBIT A-I
CITY OF RAHWAY COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE
REGULATORY BASIS- CURRENT FUND AS OF DECEMBER 31,2016 AND 2015
Reference
REVENUE AND OTHER INCOME REALIZED Fund Balance Anticipated A-2 Miscellaneous Revenue Anticipated A-2 Receipts from Delinquent Taxes A-2 Receipts from Current Taxes A-2 Non-Budget Revenues A-2 Other Credits to Income Unexpended Balance of Appropriation Reserves A-15 Redemption of Other Liens A-12 Interfunds Liquidated A Statutory Excess - Animal Control Trust fund B-6 Cancellation of Prior Year Accounts Payable A
Total Income
EXPENDITURES Budget Appropriations
Salaries and Wages A-3 Other Expenses A-3 Deferred Charges and Statutory Expenditures A-3 Capital Improvements A-3 Municipal Debt Service A-3
County Taxes A-22 Amount Due County for Added and Omilted Taxes A-23 Local District School Tax A-24 Special Improvement District Tax A-25 Interfunds Advanced A Senior Citizens and Veterans Deductions Disallowed - Prior Year A Cancellation of Grants Receivable A Refund of Prior Year Revenue and Taxes A-4
Total Expenditures
Excess in Revenue
Fund Balance, Beginning of Year A
Decreased by:
Utilized as Anticipated Revenue A-I,A-2
Fund Balance, End of Year A
The Accompanying Notes are an Integral Part of these Financial Statements 6
2016 2015
$ 2,300,000 $ 2,500,000 13,560,225 13,653,946
1,809,776 1,202,752 9I,842,32I 90,496,121
369,941 246,493
404,751 896,239 26,741 11,456
961,780 737,713 I 0, 711 4,918
101,039
Ill ,286,246 I 09,850,677
21,598,900 21,117,300 18,030,665 18,027,313 5,207,956 5,031,885
160,000 165,000 6,253,104 6,046,380
13,639,824 13,497,818 15,113 20,759
42,753,589 41,959,236 130,000 740,000 623,424 1,027,625
130 77,385
301,361 223,831
108,713,936 I 07,934,662
2,572,310 1,916,015
5,758,676 6,342,661
8,330,986 8,258,676
2,300,000 2,500,000
$ 6,030,986 $ 5,758,676
CITY OF RAHWAY
STATEMENT OF REVENUES- REGULATORY BASIS- CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31,2016
Adopted
Reference Budget
Surplus Anticipated A-2 $ 2,300,000
Miscellaneous Revenues
Licenses Alcoholic Beverages A-ll 57,000
Other A-ll 5,000
Fees and Permits A-ll 100,000
Fines and Costs Municipal Court A-ll 685,000
Interest and Costs on Taxes A-ll 200,000
Interest on -Investments and Deposits A-2 48,000
Anticipated Utility Operating Surplusw Water A-li,D-4 334,739
Anticipated Utility Operating Surplus- Sewer A-ll,E-4 342,815
Police Department Fees A-ll 95,000
Payments in Lieu of Taxes (PILOT)
Lower Essex St. - Denholtz Management A-ll 460,000
Landmark- Block 157 Lot 1 A-ll 571,377
Rahway Parking Authority A-ll 170,000
Rosegate A-ll 18,000
Housing Authority A-ll 48,000
Senior Citizen Housing A-ll 250,000
Meyers Sr. Residence A-ll 55,000
Metro A-ll 100,000
Waters Edge A-ll 212,000
Cellular Phone Tower Fees A-ll 425,000
Vacant/Foreclosure House Registration A-ll 325,000
Police Security M Administrative Fees A-ll 150,000
Planning Board Application Fees A-ll 35,000
Street Open Pennits A-ll 40,000
Motor Vehicle Fines A-ll 3,000
UCC Penalties A'll 15,000
Comcast Cable Franchise Fee A-ll 90,000
Unifonn Construction Code Fees A-ll 465,000
State Aid Without Offsetting Appropriations
Consolidated Municipal Property Tax Relief Aid A-ll 846,232
Energy Receipts Taxes A-ll 3,162,741
Interlocal Service Agreement Offset with Appropriations
Berkeley Heights Health Services Contract A-ll 67,000
The Accompanying Notes are an Integral Part of these Financial Statements 7
Added by
NJSA 40A:4-87 Actual
$ 2,300,000
60,700
7,525
127,284
587,883
376,798
65,413
334,739
114,174
95,399
476,902
571,377
170,000
27,036
53,932
269,735
72,052
231,015
421,005
401,588
403,500
236,813
5,745
62,526
3,375
15,770
92,836
436,464
846,232
3,162,741
71,837
$
EXHIBIT A-2
Page 1
Excess or (Deficit)
3,700
2,525
27,284
(97,117)
176,798
17,413
(228,641)
399
16,902
9,036
5,932
19,735
17,052
131,015
209,005
(23,412)
78,500
86,813
(29,255)
22,526
375
770
2,836
(28,536)
4,837
CITY OF RAHWAY
STATEMENT OF REVENUES- REGULATORY BASIS- CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31,2016
Modified
Reference Budget
Public and Private Revenues Offset with Appropriations
Clean Communities A-20 $ 51,064
Recycling Tonnage Grant A-20 62,670
Drunk Driving Enforcement Fund A-20 6,702
Multiple Housing Inspections A-20 ll,094
Body Armor Replacement Program A-20 6,624
Drug Free Communities A-6
Kids Recreation Trust A-20 425
Recreation Heart Grant A-20 1,250
RWJ Foundation A-6
UC History A-6
NJ DOT Highway Safety Grant A-20 87,041
Grabill Charitable Trust A-6 10,000
Alcohol Education and Rehabilitation A-20 11,097
County of Union- Police Body Cameras A-6 30,000
Other Special Items of Revenue
U.C.U.A- Host Community Fees A-ll 2,650,000
U.C.U.A.- Host Community Fees- Excess Tonnage A-28 109,810
Solid Waste Fees
Rahway Housing Authority A-ll 18,000
Rahway Board of Education A-ll 40,000
Bulky Waste Fees
Kenilworth A-ll 60,000
Outside Health Services
Scotch Plains A-ll 66,000
Hillside A-ll 20,000
Winfield A-ll 5,000
Reserve for FEMA Reimbursements A-27 461,605
Hotel Fees A-ll 150,000
Total Miscellaneous Revenues 13,234,286
Receipts from Delinquent Taxes A-2 930,000
Amount to be Raised by Taxes for Municipal Budget
Local Tax for Municipal Purposes 35,878,964
Minimum Library Tax 830,750
Total Amount to be Raised by Taxes A-2 36,709,714
Budget Totals $ 53,174,000
Non~Budget Revenues A-2
The Accompanying Notes are an Integral Part of these Financial Statements 8
Added by
NJSA 40A:4-87
$ 125,000
500
1,125
$ 126,625
$ 126,625
Actual
$ 51,064
62,670
6,702
11,094
6,624
125,000
425
1,250
500
1,125
87,041
10,000
11,097
30,000
2,350,000
109,810
37,000
40,000
75,080
68,328
22,047
8,975
461,605 180,392
13,560,225
1,809,776
36,523,045
830,750
37,353,795
55,023,796
369,941
$ 55,393,737
EXHIBIT A-2
Page2
Excess or
<Deficit)
$ (300,000)
19,000
15,080
2,328
2,047
3,975
30,392
199,314
879,776
644,081
644,081
$ 1,723,171
CITY OF RAHWAY
STATEMENT OF REVENUES- REGULATORY BASIS- CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31,2016
Analysis of Current Tax Collections
Revenue from Collections
Less Allocated to School, County Taxes and
Special District Taxes
Add Appropriation "Reserve for Uncollected Taxes
Balance for Support of Municipal Budget Appropriations
Interest on Investments
Revenue Accounts Receivable
Due from Other Trust Fund
Due from General Capital Fund
Due from Self Insurance Tmst Fund Due from Animal Control Fund
Non~ Budget Revenue
Uniform Fire Safety Act
Zoning Maps/Ordinances
Copies
Engineering Fees
Police Confiscated Cash
Bail Forfeiture
Medicare Reimbursement
Solid Waste Fees
Rahway Geriatrics Center
Refund of Prior Year Expenditures
Sale ofRecyclables
Sale of Vehicles & Equip
Health Services- Board of Education
Board of Adjustment Applications
Administrative Fee- Senior Citizens/Veterans Deductions
Other Miscellaneous
The Accompanying Notes are an Integral Part of these Financial Statements 9
Reference
A-8
A-22, A-23
A-24, A-25
A-3
A-2
A-ll
B-17
C-4
B-14 8-6
A-2
A-I, A-2
EXHIBIT A-2
Page3
$ 91,842,321
56,538,526
35,303,795
2,050,000
$ 37,353,795
$
$
$
44,348
5,675
15,137
188
65
65,413
78,502
10,418
4,409
7,050
3,530
2,716
11,596
34,500
117,603
17,614
16,786
3,240
12,957
4,125 44,895
369,941
EXHIBIT A-3 Page 1
CITY OF RAHWAY STATEMENT OF EXPENDITURES- REGULATORY BASIS- CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31,2016
Atmronriation Exnended Unexpended Budget After Paid or Balances
Budget Modification Charged Reserved Cancelled OPERATIONS- WITH!N "CAPS" General Government
Department of Administration Salaries and Wages $ 344,000 $ 344,000 $ 341,830 $ 2,170 Other Expenses 389,000 389,000 362,006 26,994
Mayor's Office Salaries and Wages 72,000 72,000 72,000
Municipal Council Salaries and Wages 75,000 75,000 74,021 979 Other Expenses 1,000 1,100 1,010 90
Environmental Commission Salaries and Wages 4,000 4,000 3,858 142 Other Expenses ll,OOO 11,000 815 10,185
City Clerk Salaries and Wages 114,000 143,000 139,694 3,306 Other Expenses 34,000 34,000 32,794 1,206
Department of Revenue and Finance Salaries and Wages 490,000 440,000 422,379 17,621 Other Expenses 637,000 677,000 671,230 5,770 Municipal Audit 60,000 73,000 59,000 14,000
Revenue Administration (Tax Collection) Salaries and Wages 161,000 111,000 97,168 13,832 Other Expenses 72,000 72,000 56,421 15,579
Department of Assessment Salaries and Wages 114,000 114,000 106,966 7,034 Other Expenses 80,000 80,000 26,545 53,455
Department of Law Salaries and Wages 77,000 80,000 79,358 642 Other Expenses 500,000 620,000 512,437 107,563
Division of Engineering Other Expenses 400,000 400,000 343,466 56,534
Department of Building, Planning & Economic Development
Salaries and Wages 74,000 74,000 73,974 26 Other Expenses 3,000 3,000 (71,060) 74,060
Planning Board Salaries and Wages 5,000 5,000 4,052 948 Other Expenses 6,000 6,000 4,094 1,906
Zoning Board of Adjustment Salaries and Wages 4,000 4,200 4,178 22 Other Expenses 6,000 6,000 4,097 1,903
Uniform Construction Code Enforcement (NJSA 52:270-120 etc.) Salaries and Wages 441,000 441,000 437,175 3,825
Other Expenses 32,000 32,000 13,891 18,109
Municipal A.B. C. Board Salaries and Wages 3,000 3,000 2,919 81
Other Expenses 1,000 1,000 992 8
Insurance Other Insurance 1,430,000 1,316,000 1,175,087 140,913
Employee Group Insurance 7,813,520 7,795,493 7,604,679 190,814
Police Department Salaries and Wages 8,646,000 8,791,000 8,788,620 2,380
Other Expenses 308,000 308,000 297,759 10,241
The Accompanying Notes are an Integral Part of these Financial Statements 10
EXHIBIT A-3 Page2
CITY OF RAHWAY STATEMENT OF EXPENDITURES- REGULATORY BASIS- CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2016
Aunrouriation Expended Unexpended Budget After Paid or Balances
Budget Modification Charged Reserved Cancelled OPERATIONS- WITHIN "CAPS" (Continued) Office of Emergency Management
Salaries and Wages $ 56,000 $ 56,000 $ 55,835 $ I65 Other Expenses 28,000 28,000 28,000
Fire Department Salaries and Wages 5,433,000 5,588,000 5,587,66I 339 Other Expenses I75,000 I75,000 174,269 73I
Department of Public Works Salaries and Wages 2,60I,OOO 2,201,000 2,123,735 77,265 Other Expenses 1,266,000 1,266,000 932,774 333,226
Solid Waste and Recycling Salaries and Wages 1,108,000 1,I08,000 1,107,123 877 Other Expenses 1,154,000 1,154,000 1,009,907 144,093
Department of Health and Welfare Salaries and Wages 375,000 510,000 505,322 4,678 Other Expenses 152,000 152,000 122,154 29,846
Community Services ~ Senior Services Salaries and Wages 169,000 169,000 158,415 10,585 Other Expenses 44,000 44,000 34,002 9,998
Recreation Department Salaries and Wages 588,000 547,700 526,267 21,433 Other Expenses 200,000 205,000 I96,260 8,740 Municipal Court
Salaries and Wages 469,000 469,000 410,145 58,855 Other Expenses 30,000 38,000 29,931 8,069
Unclassified Electricity 325,000 315,000 259,239 55,76I Heating Fuels ll5,000 90,000 60,746 29,254 Telephone I50,000 160,000 !30,2I1 29,789 Street Lighting 525,000 550,000 463,523 86,477
Total Operations Within "CAPS" 37,370,520 37,35I,493 35,658,974 I,692,5I9
Contingent
Total Operations Including Contingent ~Within "CAPS" 37,370,520 37,35I,493 35,658,974 1,692,5I9
Detail: Salaries & Wages 2I,423,000 21,349,900 21,122,695 227,205 Otfier Expenses (Including Contingent) 15,947,520 16,001,593 I4,536,279 I,465,3I4
The Accompanying Notes are an Integral Part of these Financial Statements 11
CITY OF RAHWAY STATEMENT OF EXPENDITURES- REGULATORY BASIS- CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2016
Aonrooriation Exnended Budget After Paid or
Budget Modification Charged Reserved DEFERRED CHARGES AND STATUTORY EXPENDITURES-MUNICIPAL WITHIN "CAPS"
STATUTORY EXPENDITURES Contribution to:
Public Employees' Retirement System $ 799,505 $ 799,505 $ 799,505 Police and Firemen's Retirement System 3,383,324 3,383,324 3,383,324 Pension Adjustment Fund 20,000 20,000 18,045 $ 1,955 Social Security 775,000 775,000 758,307 16,693 DCRP Contribution 5,127 6,127 5,917 210
Total Deferred Charges and Statutory Expenditures -Municipal Within "CAPS" 4,982,956 4,983,956 4,965,098 18,858
Total General Appropriations for Municipal Purposes Within "CAPS" 42,353,476 42,335,449 40,624,072 1,711,377
OPERATIONS- EXCLUDED FROM "CAPS" Maintenance of Free Public Library (Chapter 82, P.L. 1985) Other Expenses 1,414,000 1,414,000 1,414,000
Police Dispatch 9-1-l System Salaries and Wages 249,000 249,000 228,829 20,171 Other Expenses 90,000 90,000 84,443 5,557
Employee Group Insurance 53,480 53,480 53,480
Interlocal Service Agreements PHPF Berkeley Heights Direct 67,000 67,000 67,000
Public and Private Programs Offset with Revenues Clean Communities Program 51,064 51,064 51,064 Recycling Tonnage Grant 62,670 62,670 62,670 Multiple Housing Inspections 11,094 11,094 11,094 Alcohol Education & Ed 11,097 11,097 11,097 Police Body Armor 6,624 6,624 6,624 NJ DOT Safe Highway Grant 87,041 87,041 87,041 Drug Free Communities 125,000 125,000 Drunk Driving Enforcement Fund 6,702 6,702 6,702 RWJ Foundation 500 500 Recreation Heart Grant 1,250 1,250 1,250 UC History Grant 1,125 l,I25 UC Police Body Camera 30,000 30,000 30,000 UC Kids Recreation Grant 425 425 425 Grahill Charitable Trust 10,000 10,000 10,000
Total Operations M Excluded from "CAPS" 2,151,447 2,278,072 2,252,344 25,728
Detail: Salaries and Wages 249,000 249,000 228,829 20,171 Other Expenses 1,902,447 2,029,072 2,023,515 5,557
The Accompanying Notes are an Integral Part of these Financial Statements 12
EXHIBIT A-3 Page 3
Unexpended Balances Cancelled
EXHIBIT A-3 Page4
CITY OF RAHWAY STATEMENT OF EXPENDITURES- REGULATORY BASIS- CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2016
Approoriation Expended Unexpended Budget After Paid or Balances
Budget Modification Charged Reserved Cancelled
CAPITAL IMPROVEMENTS- EXCLUDED FROM "CAPS" Capital Improvement Fund $ 160,000 $ 160,000 $ 160,000
Total Capital Improvements~ Excluded from "CAPS" 160,000 160,000 160,000
MUNICIPAL DEBT SERVICE- EXCLUDED FROM "CAPS" Payment of Bond Principal 2,929,685 2,929,685 2,929,685
Interest on Bonds 1,546,951 1,546,951 1,546,951 Interest in Notes 180,000 179,828 179,828 Green Acres Loan 73,471 91,670 91,670
Repayment of Principal and Interest NJ DCA Loan Repayment 20,000 20,000 20,000 Capital Grant Agreement ~ Rahway Redevelopment Agency
Library Project/Arts Center Project 1,127,970 1,127,970 1,127,970
Tax Appeal Refunding Note Principal 350,000 350,000 350,000 Interest 7,000 7,000 7,000
Total Municipal Debt Service Excluded from "CAPS" 6,235,077 6,253,104 6,253,104
DEFERRED CHARGES AND STATUTORY EXPENDITURES-
EXCLUDED FROM "CAPS"
Special Emergency Authorizations 224,000 224,000 224,000
Total Deferred Charges and Statutory Expenditures Excluded from "CAPS" 224,000 224,000 224,000
Total General Appropriations ~Excluded from "CAPS" 8,770,524 8,915,176 8,889,448 $ 25,728
Subtotal General Appropriations 51,124,000 51,250,625 49,513,520 1,737,105
Reserve for Uncollected Taxes 2,050,000 2,050,000 2,050,000
Total General Appropriations $ 53,174,000 $ 53,300,625 $ 51,563,520 $ 1,737,105 $
Reference A-2 A-I A-l,A
The Accompanying Notes are an Integral Part of these Financial Statements 13
CITY OF RAHWAY STATEMENT OF EXPENDITURES - REGULATORY BASIS - CURRENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2016
Budget as Adopted Added by N.J.S. 40A:4-87
Cash Disbursements Encumbrances Payable Due to General Capital Fund Transferred to Appropriated Grant Reserves Deferred Charges Reserve for Uncollected Taxes
The Accompanying Notes are an Integral Part of these Financial Statements 14
Reference
A-2
A-4 A-16 C-4
A-21 A-14 A-2
Budget After
Modification
$ 53,174,000 126,625
$ 53,300,625
$
$
EXHIBIT A-3 Page 5
Paid or
Charged
47,747,426 787,502 350,000 404,592 224,000
2,050,000
51,563,520
CITY OF RAHWAY COMPARATIVE BALANCE SHEETS- REGULATORY BASIS- TRUST FUND
AS OF DECEMBER 31, 2016 AND 2015
ASSETS
Animal Control Fund Cash
Community Development Trust Fund Cash Community Development Grants Receivable Loans Receivable Deferred Loans Receivable
Other Trust Fund Cash Due from Current Fund
Self- Insurance Fund Cash Due from Current Fund Due from Other Trust Fund
Total Assets
The Accompanying Notes are an Integral Part of these Financial Statements 15
Reference 2016
B-3 $ 23,047
23,047
B-3 615,203 B-7 380,366 B-8 224,124 B-9 2,535,802
3,755,495
B-3 4,605,386 B-17 605,362
5,210,748
B-3 132,946 B-14 17,376 B-24 26,538
176,860
$ 9,166,150
EXHlBIT B Page I
2015
$ 24,366
24,366
598,095 418,622 240,544
2,579,595
3,836,856
3,842,486 1,184,969
5,027,455
126,416 17,564
143,980
$ 9,032,657
CITY OF RAHWAY COMPARATIVE BALANCE SHEETS - REGULA TORY BASIS - TRUST FUND
AS OF DECEMBER 31, 2016 AND 2015
LIABILITIES, RESERVES AND FUND BALANCES
Animal Control Fund Due to State of New Jersey Reserve for Animal Control Expenditures Due to Current Fund
Community Development Trust Fund Due to Current Fund Due to General Capital Fund Reserve for Loans Receivable Encumbrances Payable Reserve for Community Development Expenditures
Other Trust Fund Due to Self Insurance Trust Fund Miscellaneous Reserves and Deposits Other Liabilities Payroll Deductions Payable Accrued Salaries and Wages Reserve for Flex Spending Fund Balance
Self- Insurance Fund Reserve for Workers' Compensation Reserve for Unemployment Compensation Due to State ofNew Jersey
Total Liabilities and Fund Balance
The Accompanying Notes are an Integral Part of these Financial Statements 16
Reference 2016
B-4 $ 23 B-5 12,307 B-6 10,717
23,047
B-22 65,845 B-23 386,000
B-8, B-9 2,759,926 B-10 144,515 B-11 399,209
3,755,495
B-24 26,538 B-16 4,633,096 B-18 226,390 B-19 188,981 B-20 93,886 B-21 4,207 B-2 37,650
5,210,748
B-12 67,5 IO B-13 105,482 B-15 3,868
176,860
$ 9,166,150
EXHIBIT B Page 2
2015
$ 35 11,937 12,394
24,366
65,845 391,000
2,820,139 94,936
464,936
3,836,856
4,372,566 336,422 198,495 80,373
1,949 37,650
5,027,455
51,429 90,743
1,808
143,980
$ 9,032,657
CITY OF RAHWAY STATEMENTS OF CHANGES IN FUND BALANCE- REGULATORY BASIS
ASSESSMENT TRUST FUND FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
Reference
Balance, Beginning of Year B
Decreased by:
Current Fund Anticipated Revenue
Balance, End of Year B
STATEMENTS OF CHANGES IN FUND BALANCE- REGULATORY BASISOTHER TRUST FUND
FOR THE YEARS ENDED DECEMBER 31,2016 AND 2015
Balance, Beginning of Year
Balance, End of Year
The Accompanying Notes are an Integral Part of these Financial Statements 17
Reference
B
B
$
$
EXHIBIT B-1
$ 9,897
9,897
EXHIBIT B-2
3 7,650 =-$ ~~3"-'7-",6"'5"-0
3 7,650 :;;.$ ~~3;:;,;7:..;,6;,;;5;;,0
CITY OF RAHWAY COMPARATIVE BALANCE SHEETS- REGULATORY BASIS- GENERAL CAPITAL FUND
AS OF DECEMBER 31, 2016 AND 2015
ASSETS
Cash Deferred Charges to Future Taxation
Funded Unfunded Cancelled Grants Receivable
Grants Receivable Loans Receivable Due from Rahway Redevelopment Agency Due from Current Fund Due from Water Utility Capital Fund Due ti-om CDBG Trust Fund
Total Assets
LIABILITIES, RESERVES AND FUND BALANCE
Serial Bonds Payable Bond Anticipation Notes Payable Green Acres Loans Payable Department of Community Affairs Loan Payable NJ Redevelopment Authority Loan Payable Contracts Payable Improvement Authorizations:
Funded Unfunded
Due to Sewer Utility Capital Fund Capital Improvement Fund Reserve for Grants Receivable Reserve for Payment of Debt Reserve for Preliminary Expenses Fund Balance
Total Liabilities, Reserves and Fund Balance
Reference
C-2, C-3 $ 5,992,110
C-5 48,156,090 C-6 3,81 0,186
C-20 140,279 C-9 661,775
C-10 13,495 C-16 811,993 C-4 734,619
D-17 B-23 386,000
$ 60,706,547
C-8 47,611,970 C-11 1,812,570 C-12 336,620 C-13 20,000 C-14 187,500 C-17 1,296,214
C-7 5,042,598 C-7 1,237,259 E-15 C-15 260,175 C-9 421,775
C-19 91,978 C-18 8,257 C-1 2,379,631
$ 60,706,547
There were bonds and notes authorized but not issued on December 31, 2016 and 2015 of$! ,997,616 and $1,703,045, respectively (Exhibit C-21)
The Accompanying Notes are an Integral Part of these Financial Statements 18
EXHIBIT C
$ 5,424,763
42,801,984 10,679,224
140,279 507,639
13,495 39,544
937,090 1,000,000
391,000
$ 61,935,018
$ 42,172,073 9,341,387
402,411 40,000
187,500 I ,902,433
2,552,306 3,139,819
198,566 218,034 175,950
8,257 1,596,282
$ 61,935,018
CITY OF RAHWAY COMPARATIVE STATEMENTS OF CHANGES IN FUND BALANCE- REGULATORY BASIS
GENERAL CAPITAL FUND FOR THE YEARS ENDED DECEMBER 31,2016 AND 2015
Balance, Beginning of Year
Increased by:
Premium on Bond Anticipation Notes
Balance, End of Year
The Accompanying Notes are an Integral Part of these Financial Statements 19
Reference
c
C-2
c
2016
$ I ,596,282
783,349
$ 2,379,631
EXHIBITC-1
2015
$ 984,548
611,734
$ 1,596,282
CITY OF RAHWAY COMPARATIVE BALANCE SHEETS- REGULATORY BASIS
WATER UTILITY FUND AS OF DECEMBER 31, 2016 AND 2015
ASSETS
Operating Fund Cash Cash - Change Fund Due from Current Fund Due from Water Utility Capital Fund
Receivables and Other Assets With Full Reserves Consumer Accounts Receivable
Deferred Charges Emergency Appropriation Overexpenditure of Appropriations Overexpenditure of Appropriation Reserves
Total Operating Fund
Capital Fund Cash Fixed Capital Fixed Capital Authorized and Uncompleted
Total Capital Fund
Total Assets
The Accompanying Notes are an Integral Part of these Financial Statements 20
Reference
D-5 D-7
D-16 D-15
D-10
D-11 D-11 D-11
D-5, D-6 D-8 D-9
2016
$ 1,717,769 $ 200
687,725 902,261
3,307,955
868,109
34,105
34,105
4,210,169
10,070,015 35,748,459 22,785,000
68,603,474
$ 72,813,643 $
EXHIBITD Page I
2015
443,536 200
780,266
1,224,002
828,397
360,000 29,154
389,154
2,441,553
14,426,331 33,048,459 25,085,000
72,559,790
75,001,343
CITY OF RAHWAY COMPARATIVE BALANCE SHEETS- REGULATORY BASIS
WATER UTILITY FUND AS OF DECEMBER 31, 2016 AND 2015
Reference
LIABILITIES, RESERVES AND FUND BALANCE
Operating Fund Appropriation Reserves D-4, D-12 Encumbrances Payable D-13 Accrued Interest on Bonds and Notes D-26 Accounts Payable and Other Liabilities D-14 Due to Current Fund D-16 Due to Sewer Utility Operating Fund E-13
Reserve for Receivables D Fund Balance D-1
Total Operating Fund
Capital Fund Serial Bonds Payable D-23 Bond Anticipation Notes Payable D-24 Contracts Payable D-20 Capital Improvement Fund D-25 Improvement Authorizations
Unfunded D-19 Reserve for Amortization D-21 Reserve for Deferred Amortization D-22 Due to Current Fund D-18 Due to General Capital Fund D-17 Due to Water Utility Operating Fund D-15 Fund Balance D-2
Total Capital Fund
Total Liabilities, Reserves and Fund Balance
2016
$ 67,470 32,483 70,815 19,896
2,495,762
2,686,426
868, I 09 655,634
4,210,169
3,005,000 22,664,498
8,098,924 106,472
6,993,024 25,863,932
303,929 320,418
902,261 345,016
68,603,474
$ 72,813,643
There were bonds and notes authorized but not issued on December 31, 2016 and 2015 of $6,696, I 00 and $6,452,970, respectively (Exhibit D-27).
The Accompanying Notes are an Integral Part of these Financial Statements 21
$
$
EXHIBIT D Page 2
2015
65,791 65,362
800 928,520 385,852
I ,446,325
828,397 166,831
2,441,553
3,805,000 22,721,251
1,347,784 56,472
17,404,834 24,860,710
293,528
1,000,000 780,266 289,945
72,559,790
75,001,343
CITY OF RAHWAY COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE
REGULATORY BASIS- WATER UTILITY OPERATING FUND FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
Revenue and Other Income Realized Rents Additional Water Rents Miscellaneous Revenue Other Credits to Income
Cancellation of Prior Year Accounts Payable Unexpended Balance of Appropriation Reserves
Expenditures Budget Appropriations
Operating Capital Improvements Debt Service Deferred Charges
Overecpenditure of Appropriation Reserves Refund of Prior Year Revenue
Excess (Deficiency) in Revenues Over (Under) Expenditures
Adjustments to Income Before Fund Balance Expenditures Included Above Which by Statute are
Required to be Raised in Subsequent Year's Budget Surplus to General Budget
Statutory Excess to Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
The Accompanying Notes are an Integral Part of these Financial Statements 22
Reference
D-3 D-3 D-3
D-14 D-12
D-4 D-4 D-4 D-4
D-5
D-11 D-4
D
D
2016
$ 6,082,360 286,000 125,643
800
6,494,803
3,933,484 50,000
1,288,222 399,555
34,105
5,705,366
789,437
34,105 (334,739)
488,803
166,83 I
$ 655,634
EXHIBIT D-1
2015
$ 5,721,332
34,382
326
5,756,040
4,228,458 50,000
I, 179,278 335,285
46,814
5,839,835
(83,795)
389,154 (!67,385)
!37,974
28,857
$ 166,83I
CITY OF RAHWAY COMPARATIVE STATEMENTS OF CHANGES IN FUND BALANCE- REGULATORY BASIS
WATER UTILITY CAPITAL FUND FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
Balance, Beginning of Y car
Increased by:
Premium on Issuance of Bonds and Notes
Balance, End of Year
The Accompanying Notes are an Integral Part of these Financial Statements 23
Reference
D
D-5
D
2016
$ 289,945
55,071
$ 345,016
EXHIBIT D-2
2015
$ 189,847
100,098
$ 289,945
CITY OF RAHWAY STATEMENT OF REVENUES- REGULATORY BASIS
WATER UTILITY OPERATING FUND FOR THE YEAR ENDED DECEMBER 31,2016
Reference Anticipated
Rents Additional Water Rents
Nonbudget Revenue
Analysis of Realized Revenue:
Miscellaneous Water Connection Fees Interest on Investments
Cash Receipts Due from Water Utility Capital Fund
D-I,D-10 D-1
D-5 D-15
The Accompanying Notes are an Integral Part of these Financial Statements 24
$ 5,720,000 286,000
$ 6,006,000
EXHIBITD-3
Excess Realized (Deficit)
$ 6,082,360 $ 362,360 286,000
6,368,360 $ 362,360
125,643
$ 6,494,003
$ 118,600 7,043
$ 125,643
$ 122,981 2,662
$ 125,643
CITY OF RAHWAY STATEMENT OF EXPENDITURES -REGULATORY BASIS
WATER UTILITY OPERATING FUND FOR THE YEAR ENDED DECEMBER 31, 2016
Operating Management Fee Other Expenses
Capital Improvements
Capital Improvement Fund
Debt Service
Payment of Bond Principal
Payment of Bond Anticipation Notes
Interest on Bonds Interest on Notes
Deferred Charges Emergency Authorization Overexpenditure of Appropriations Deferred Charges Unfunded~ Water Utility Capital
Surplus (General Budget)
Adopted Budget
Cash Disbursements Encumbrances Payable Due to Current Fund Due to Water Utility Capital Fund Deferred Charges Accrued Interest on Bonds and Notes
Reference
D-5 D-13 D-16 D-15 D-11 D-26
The Accompanying Notes are an Integral Part of these Financial Statements 25
$
$
Appropriation Budget After
Modification
3,233,484 $ 3,233,484 700,000 700,000
50,000 50,000
800,000 800,000
203,222 203,222
130,000 130,000 155,000 155,000
360,000 360,000 29,154 29,154 10,401 10,401
334,739 334,739
6,006,000 $ 6,006,000
$ 6,006,000
EXHIBITD-4
Expended
Paid or Charged
$ 3,233,484 632,530
50,000
800,000
203,222
130,000 155,000
360,000 29,154 10,401
334,739
$ 5,938,530
$ 4,138,267 32,483
1,083,225 10,401
389,154 285,000
$ 5,938,530
Reserved
$ 67,470
$ 67,470
CITY OF RAHWAY COMPARATIVE BALANCE SHEETS- REGULATORY BASIS
SEWER UTILITY FUND AS OF DECEMBER 31,2016 AND 2015
Reference
ASSETS
Operating Fund Cash E-5 Due from Current Fund E-ll Due from Water Utility Operating Fund E-13 Due from Sewer Utility Capital Fund E-14
Receivables and Other Assets With Full Reserves Consumer Accounts Receivable E-7
Deferred Charges
Overexpenditure of Appropriations E-8
Total Operating Fund
Capital Fund Cash E-5, E-6 Fixed Capital E-9 Fixed Capital Authorized and Uncompleted E-10 Due from Current Fund E-12 Due from General Capital Fund E-15 Due from Sewer Utility Operating Fund E-14
Total Capital Fund
Total Assets
The Accompanying Notes are an Integral Part of these Financial Statements 26
2016
$ 274,721
2,495,762
2,770,483
367,953
3,138,436
95,624 3,655,428 2,590,000
798,916
7,139,968
$ 10,278,404
$
$
EXHIBITE Pagel
2015
1,671,637 8,172
385,852 295
2,065,956
349;806
20,745
2,436,507
910,924 3,655,428 1,840,000
351,434 198,566
6,956,352
9,392,859
CITY OF RAHWAY COMPARATIVE BALANCE SHEETS- REGULATORY BASIS
SEWER UTILITY FUND AS OF DECEMBER 31, 2016 AND 2015
Reference 2016
LIABILITIES, RESERVES AND FUND BALANCE
Operating Fund Appropriation Reserves E-3, E-16 $ 34,414 Encumbrances Payable E-17 3,021 Due to Current Fund E-ll 142,989 Due to Sewer Utility Capital Fund E-14 798,916 Accrued Interest on Bond and Loans E-24 24,947
1,004,287
Reserve for Receivables E 367,953 Fund Balance E-1 1,766,196
Total Operating Fund 3,138,436
Capital Fund Serial Bonds Payable E-18 995,030 NJ Environmental Infrastructure Loan Payable E-19 745,467 Bond Anticipation Notes Payable E-20 I ,845,868 Due to Sewer Utility Operating Fund E-14 Improvement Authorizations
Unfunded E-21 I ,056,690 Contracts Payable E-22 52,398 Capital Improvement Fund E-23 374,500 Reserve for Amortization E-25 1,902,363 Deferred Reserve for Amortization E-26 6,700 Reserve for Payment of Debt E-27 111,892 Fund Balance E-2 49,060
Total Capital Fund 7,139,968
Total Liabilities, Reserves and Fund Balance $ 10,278,404
$
$
EXHIBITE Page2
2015
18,215 25,712
26,578
70,505
349,806 2,016,196
2,436,507
1,137,927 859,252
I ,856,793 295
755,604 190,773 353,300
I ,634,756 6,700
111,892 49,060
6,956,352
9,392,859
There were bonds and notes authorized but not issued of $750,000 and $-0-, on December 31, 2016 and 2015, respectively. (Exhibit E-28)
The Accompanying Notes are an Integral Part of these Financial Statements 27
EXHIBITE-1
CITY OF RAHWAY COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE
REGULATORY BASIS- SEWER UTILITY OPERATING FUND FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
Reference
Revenue and Other Income Realized Surplus Anticipated E-3 Rents E-3 Industrial Sewer Flow Charges E-3 Sewer Connection Fees E-3 Miscellaneous Revenue E-3 Other Credits to Income
Unexpended Balance of Appropriation Reserves E-16
Expenditures Budget Appropriations
Operating E-4 Capital Improvements E-4 Debt Service E-4 Deferred Charges and Statutory Expenditures E-4
Excess in Revenues Over Expenditures
Adjustments to Income Before Fund Balance Expenditures Included Above Which by Statute
are Required to be Raised in Subsequent Year E-8 Surplus to General Budget E-4
Statutory Excess to Fund Balance
Fund Balance, Beginning of Year E
Decreased by:
Utilized as Anticipated Revenue E-3
Fund Balance, End of Year E
The Accompanying Notes are an Integral Part of these Financial Statements 28
2016
$ 250,000 4,488,364
302,070
66,576
3,352
5,110,362
4,579,000 21,200
363,243 32,745
4,996,188
114,174
(114,174)
2,016,196
2,016,196
250,000
$ 1,766,196
2015
$ 250,000 4,954,529
181,625
19,927
68,825
5,474,906
4,496,386 25,000
349,542 Il,200
4,882,128
592,778
20,745 (387,612)
225,911
2,040,285
2,266,196
250,000
$ 2,016,196
EXHIBIT E-2
CITY OF RAHWAY COMPARATIVE STATEMENTS OF CHANGES IN FUND BALANCE- REGULATORY BASIS
SEWER UTILITY CAPITAL FUND FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
Reference
Balance, Beginning of Year E
Increased by:
Premium on Bond Anticipation Notes E-5
Balance, End of Year E
The Accompanying Notes are an Integral Part of these Financial Statements 29
$ 49,060 $ 22,378
26,682
$ 49,060 ;:;.$ ~~~49;;;,0;;;:6:;;0
Surplus Anticipated Rents
Industrial Sewer Flow Charges
Nonbudget Revenue
Analysis of Realized Revenue:
Miscellaneous Sewer Connection Fees Interest on Investments and Deposits
CITY OF RAHWAY STATEMENT OF REVENUES- REGULATORY BASIS
SEWER UTILITY OPERATING FUND FOR THE YEAR ENDED DECEMBER 31, 2016
Reference
E-1 E-l,E-3 E-I,E-5
E-4
E-3
E-5 Cash Receipts
Anticipated
$ 250,000 4,950,000
I50,000
$ 5,350,000
E-I4 Due from Sewer Utility
Capital Fund
The Accompanying Notes are an Integral Part of these Financial Statements 30
$ 250,000 4,488,364
302,070
5,040,434
66,576
$ 5,I07,010
$ 63,445 3,13I
$ 66,576
$ 65,280
I,296
$ 66,576
EXHIBIT E-3
$
$
Excess <Deficit)
(461,636) I52,070
(309,566)
EXHIBITE-4
CITY OF RAIIWA Y STATEMENT OF EXPENDITURES -REGULATORY BASIS
SEWER UTILITY OPERATING FUND FOR THE YEAR ENDED DECEMBER31, 2016
Agpronriation Expended Budget Unexpended After Paid or Balances
Budget Modification Charged Reserved Cancelled
Operating Salaries and Wages $ 145,000 $ 145,000 $ 143,647 $ 1,353 Other Expenses 325,000 325,000 293,546 31,454
Sewer Treatment Expense Rahway Valley Sewer Authority 4,025,000 4,025,000 4,024,466 534 Sewer Permit Fees 84,000 84,000 83,984 16
Capital Improvements Capital Improvement Fund 21,200 21,200 21,200
Debt Service Payment of Bond Principal 125,315 125,315 125,315 Payment of Bond Anticipation Notes 10,925 10,925 10,925
Interest on Bonds 35,000 35,000 34,226 $ 774
Interest on Notes 43,000 43,000 35,505 7,495
Principal and Interest on Loans 160,000 160,000 157,272 2,728
Deferred Charges Overexpenditure of Appropriations 20,745 20,745 20,745
Statutory Expenditures Social Security System (O.A.S.I.) 12,000 12,000 10,943 1,057
Surplus (General Budget) 342,815 342,815 114,174 228,641
$ 5,350,000 $ 5,350,000 $ 5,075,948 $ 34,414 $ 239,638
Reference E-3 E-1 E,E-1
Cash Disbursements E-5 $ 4,766,868
Encumbrances Payable E-17 3,021
Deferred Charges E-8 20,745
Due to Current Fund E-1 I 207,601
Accrued Interest on Bonds and Notes E-24 77,713
$ 5,075,948
The Accompanying Notes are an Integral Part of these Financial Statements 31
CITY OF RAHWAY COMPARATIVE BALANCE SHEETS- REGULATORY BASIS
GENERAL FIXED ASSETS ACCOUNT GROUP AS OF DECEMBER 31,2016 AND 2015
2016
ASSETS
Land $ 15,993,700 Land Improvements 2,187,390 Buildings and Building Improvements 37,046,3 I 9 Machinery and Equipment 7,606,121
Total Assets $ 62,833,530
LIABILITIES AND RESERVES
EXHIBITF
2015
$ 15,993,700 2,187,390
36,882,784 7,212,224
$ 62,276,098
Investment in General Fixed Assets $ 62,833,530 $ 62,276,098
The Accompanying Notes are an Integral Part of these Financial Statements 32
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Rahway (the "City") was incorporated in 1858 and operates under the Faulkner Act, an elected Mayor and Council Plan B form of government. The Mayor and nine members of the City Council are elected to four-year terms. Six members of the Council are elected from each of six wards. Three Council members are elected at-large at the same time as the Mayor, two years after the ward seats are up for an election. Under the City's form of government, all executive and administrative authority is rested in the office of the Mayor, who is the Chief Executive Officer of the City. The City Council exercises all legislative powers including final adoption of the municipal budget and bond ordinances. A Business Administrator is appointed by the Mayor and is responsible for the implementation of the policies of the Mayor and Council, the administration of all City affairs and for the day to day operations of the City. The Business Administrator is the Chief Administrator Officer of the City. The City'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 City is financially accountable. The City is financially accountable for an organization if the City appoints a voting majority of the organization's governing board and (1) the City is able to significantly influence the programs or services performed or provided by the organization; or (2) the City is legally entitled to or can otherwise access the organization's resources; the City is legally obligated or has otherwise assumed the responsibility to finance the deficits of, or provide fmancial support to, the organization; or the City is obligated for the debt of the organization. Component units may also include organizations that are fiscally dependent on the City in that the City approves the budget, the issuance of debt or the levying of taxes. The City 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 City do not include the municipal library, parking authority or redevelopment agency, 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 Regulatory Basis of Accounting
The financial statements of the City of Rahway 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 City 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.
33
CITY OF RAHWAY 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 City uses funds, as required by the Division, to report on its fmancial 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 City functions or activities. The City also uses an account group, which is designed to provide accountability for certain assets that are not recorded in those Funds.
The City 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 City 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.
Community Development Block Grant Fund - This fund is used to account for grant proceeds, program income and related expenditures for Federal Block grant entitlements.
Other Trust Fund - This fund is established to account for the assets and resources, which are held by the City 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 City as collateral.
Self Insurance Fund - This fund is used to account for the resources and expenditures for workers compensation and unemployment self-insurance claims and premiums.
General Capital Fund - This fund is used to account for the receipt and disbursement of funds used and related fmancial 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 City'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.
34
CITY OF RAHWAY 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)
Sewer Utility Fund- This fund is used to account for the revenues and expenditures for the operation of the City's sanitary sewerage system and the assets and liabilities relative to such activities. Acquisition or improvement of capital facilities and other capital assets for the sewer utility is accounted for in the capital section of the fund.
General Fixed Assets Account Group - This account group is used to account for all general fixed assets of the City, other than those accounted for in the water and sewer utility funds. The City's infrastructure is not reported in the account group.
Comparative Data - Comparative data for the prior year has been presented in the accompanying fmancial statements in order to provide an understanding of changes in the City'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 conform 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 City presents the regulatory basis financial statements listed in the table of contents which are required by the Division and which differ from the basic fmancial 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 p)'actices 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 fmancial statements.
The City of Rahway 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.
35
CITY OF RAHWAY 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 bill 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 io four quarterly iostallments on February I, May 1, August I, and November I. The amounts of the first and second installments are determined as one-quarter of the total tax levied agaiost 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 remaioder being divided equally. If unpaid on these dates, the amount due becomes delinquent and subject to ioterest at 8% per annum, or I 8% on any delioquency amount in excess of$ I ,500. A penalty of up to 6% of the delioquency may be imposed on a taxpayer with a delioquency in excess of$ I 0,000 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 iocurred, and the balance, if any, must be transferred as of June 30, of each fiscal year. County taxes are paid quarterly on February 15, May 15, August 15 and November 15, to the County by the City. When unpaid taxes or any municipal lien, or part thereof, on real property, remains in arrears on April first io the year following the calendar year levy when the same became io arrears, the collector io the municipality shall, subject to the provisions of the New Jersey Statutes, enforce the lien by placiog the property on a standard tax sale. The City also has the option when unpaid taxes or any municipal lien, or part thereof, on real property remains in arrears on the I I •• day of the eleventh month in the fiscal year when the taxes or lien became io 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 io the last month of the fiscal year. The City may iostitute annual io rem tax foreclosure proceediogs to enforce the tax collection or acquisition of title to the property. In accordance with the accountiog principles prescribed by the State of New Jersey, current and delinquent taxes are realized as revenue when collected. Sioce delioquent 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 offsettiog reserves on the balance sheet of the City'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).
Utilitv Revenues/Receivables - Utility charges are levied quarterly based upon a flat service charge and if applicable, an excess consumption or usage charge. Revenues from these sources are recognized on a cash basis. Receivables that are susceptible to accrual are recorded with offsettiog reserves on the balance sheet of the City's water and sewer utility operatiog funds. 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 io the City'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 io 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 io the goverrnnent-wide fmancial statements at fair value on the date of acquisition.
36
CITY OF RAHWAY 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.
Deferred Charges - Certain expenditures, operating deficits and other items are required to be deferred to budgets of succeeding years. GAAP requires expenditures, operating deficits and certain other items generally to be recognized when incurred, if measurable.
Appropriation Reserves - Appropriation reserves are recorded as liabilities and are available, until lapsed at the close of the succeeding year, to meet 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 governing 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-term 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 government-wide fmancial 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.
37
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER31, 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 Governmental Fixed Assets, the City of Rahway has developed a fixed assets accounting and reporting system. Fixed assets are defined by the City as assets with an initial, individual cost of $2,000 and an estimated useful life in excess of two years.
General fixed assets used in governmental 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, and streets and sidewalks are not capitalized.
General fixed Assets purchased after July I, 2002 are stated as cost. Donated fixed assets are recorded at estimated fair market value at the date of donation.
Fixed Assets purchased prior to July I, 2002 are stated as follows:
Land Buildings and Improvements Machinery and Equipment
No depreciation has been provided for in the financial statements.
Assessed Value Estimated Historical Cost Estimated Historical 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 under NJAC 5:30-5.6.
Property and equipment purchased by the water and sewer utility funds 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 Funds represents charges to operations for the costs of acquisitions of property, equipment and improvements. The utilities do 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 City 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.
38
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 2 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgets aud Budgetary Accounting - An annual budget is required to be adopted and integrated 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 City and approved by the State Division of Local Government Services as per N.J.S.A. 40A:4 et seq.
B.
The City is not required to adopt budgets for the following funds:
Trust Funds General Capital Fund Utility Capital Funds
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 determination 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 2016 and 2015 the City Council increased the original budget by $126,625 and $510,487. The increase for 2016 was funded by additional aid allotted to the City. The increase for 2015 was funded by additional aid allotted to the City in the amount of $150,487, as well as an emergency resolution of $360,000 for water utility expenditures. In addition, the governing body approved several budget transfers during 2016 and 2015.
Excess Exl!enditures Over Al!l!rOl!riations
The following is a summary of expenditures in excess of available appropriations. The overexpended appropriations resulted in unfavorable variances.
Modified Unfavorable 2016 Budget Actual Variance Water Utility Ogerating Fund
Appropriation Reserves Other Expenses $ 20,528 $ 54,633 $ 34,105
2015 Water Utility Ogerating Fund
Other Expenses $ 1,060,000 $ 1,089,154 $ 29,154
Sewer Utility Ogerating Fund Debt Service
Principal and Interest on Loans 133,000 153,745 20,745
In accordance with the regulatory basis of accounting, the above variances or overexpenditures were recorded as deferred charges on the balance sheet of the respective fund at year end and are required to be funded in the succeeding year's budget. GAAP does not permit the deferral of overexpenditures at year end.
39
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2016 AND 2015
NOTE 3 CASH DEPOSITS AND INVESTMENTS
The City 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 City'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 City 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.
Bank balances are insured up to $250,000 in the aggregate by the FDIC for each bank. NCUSIF 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 City's deposits were $38,455,626 and $41,616,088 and bank and brokerage firm balances of the City's deposits amounted to $38,867,556 and $42,883,139, respectively. The City's deposits which are displayed on the various fund balance sheets as "cash" are categorized as:
Bank Balance Depository Account 2016 2015
Insured $ 38,867,556 ~$~~4~2,~8~83dc,1~3~9
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 City does not have a formal policy for custodial credit risk. As of December 31, 2016 and 2015, the City's bank balances were not exposed to custodial credit risk.
B. Investments
The City is permitted to invest public funds in accordance with the types of securities authorized by N.J.S.A. 40A:5-15 .I. 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 City or bonds or other obligations of the school districts which are a part of the City or school districts located within the City, 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 City 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 Utility Capital Funds are assigned to the Utility Operating Funds in accordance with the regulatory basis of accounting.
40
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 4 TAXES AND UTILITY CHARGES RECEIVABLE
Receivables at December 31, 2016 consisted of the following:
Current 2016 Property Taxes $ 1,431,810
Tax Title Liens 422,273
Utility Rents $
$ 1,854,083 $
Utility Water Sewer Total
$ 1,431,810
422,273
868,109 $ 367,953 1,236,062
868,109 $ 367,953 $ 3,090,145
In 2016, the City collected $1,809,776 and $1,178,203 from delinquent taxes and utility charges and fees, which represented 83% and 100% of the delinquent tax, water and sewer charges receivable at December 31, 2015.
Receivables at December 31, 2015 consisted of the following:
Utility Current Water Sewer Total
2015 Property Taxes $ 1,786,381 $ 1,786,381
Tax Title Liens 395,011 395,011
Utility Rents $ 828,397 $ 349,806 1,178,203
$ 2,181,392 $ 828,397 $ 349,806 $ 3,359,595
In 2015, tbe City collected $1,202,752 and $1,011,302 from delinquent taxes and utility charges and fees, which represented 74% and 100% of the delinquent tax, water and sewer charges receivable at December 31, 2014.
41
CITY OF RAHWAY 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 Fund:
Animal Control Other Trust Community Development Self Insurance
General Capital Fund Water Utility Fund:
Operating Capital
Sewer Utility Fund: Operating Capital
Total
$
$
Due from Other Funds
539,969
605,362
43,914 1,120,619
1,589,986
2,495,762 798,916
7,194,528
Due to Due from Other Funds Other Funds
$ 2,045,082 $ 1,006,759
10,717 26,538 1,184,969
451,845 17,564
2,328,090
2,495,762 780,266 1,222,679
941,905 394,319 550,000
$ 7,194,528 $ 6,261,967
$
$
Due to Other Funds
2,499,229
12,394
456,845
198,566
1,314,372 1,780,266
295
6,261,967
The above balances are the result of expenditures being paid by one fund on behalf of another and/or to cover cash balances which were in an overdraft position.
The City expects all interfund balances to be liquidated within one year.
42
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 6 DEFERRED CHARGES TO BE RAISED IN SUCCEEDING BUDGETS
Under the regulatory basis of accounting, certain expenditures are required to be deferred to budgets of succeeding years. At December 31, the following deferred charges are reported on the balance sheets of the following funds:
Subsequent Year Balance to Balance Budget Succeeding
December 31 ArmroQriation Budgets 2016 Current Fund
Special Emergency Authorizations (40A:4-55) $ 224,000 $ 224,000 General Capital Fund
Cancelled Grants Receivable 140,279 $ 140,279 Water Utility Operating Fund
Overexpenditure of Appropriation Reserves 34,105 34,105
$ 398,384 $ 258,105 $ 140,279
Subsequent Year Balance to Balance Budget Succeeding
December 31 AQQrogriation Budgets 2015 Current Fund
Special Emergency Authorizations (40A:4-55) $ 448,000 $ 224,000 $ 224,000 General Capital Fund
Cancelled Grants Receivable 140,279 140,279 Water Utility Operating Fund
Emergency Appropriation 360,000 360,000 Overexpenditure of Appropriations 29,154 29,154
Sewer Utility Opearating Fund Overexpenditure of Appropriations 20,745 20,745
$ 998,178 $ 633,899 $ 364,279
43
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 7 FUND BALANCES APPROPRIATED
Under the regulatory basis of accounting, fund balances in the Current Fund and Utility Operating Funds 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 year'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:
2016
Fund Balance December 31
Current Fund Cash Surplus $ 5,382,411 Non-Cash Surplus 648,575
$ 6,030,986
Water Utility Operating Fund
Cash Surplus $ 621,529 Non-Cash Surplus 34,105
$ 655,634
Sewer Utility Operating Fund Cash Surplus $ 1,766,196 Non-Cash Surplus
$ 1,766,196
Utilized in Subsequent Year's Budget
$ 2,200,000
$ 2,200,000
$
250,000
$ 250,000
44
Fund Balance December 31
$ 4,867,131 891,545
$ 5,758,676
$ 166,831
$ 166,831
$ 1,995,451 20,745
$ 2,016,196
2015 Utilized
in Subsequent Year's Budget
$ 2,300,000
$ 2,300,000
$
250,000
$ 250,000
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 8 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.
Balance, Balance, December 31 , December 31 ,
2015 Increases Decreases 2016 2016 Land $ 15,993,700 $ 15,993,700 Land Improvements 2,187,390 2,187,390 Buildings and Building Improvements 36,882,784 $ 163,535 37,046,319 Machinery and Equipment 7,212,224 393,897 7,606,121
$ 62,276,098 $ 557,432 $ $ 62,833,530
Balance Balance, December 31 , December 31,
2014 Increases Decreases 2015 2015 Land $ 15,993,700 $ 15,993,700 Land Improvements 2,187,390 2,187,390 Buildings and Building Improvements 36,798,556 $ 84,228 36,882,784 Machinery and Equipment 6,792,865 419,359 7,212,224
$ 61,772,511 $ 503,587 $ $ 62,276,098
45
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 8 FIXED ASSETS (Continued)
B. Utility Funds Fixed Assets
The following is a summary of changes in the utility fund fixed assets for the years ended December 31, 2016 and 2015.
Balance, Balance, December 31 , December 31 ,
Water Utility Fund 2015 Increases Decreases 2016
2016 Fixed Capital
System and System Improvements $ 14,357,915 $ 14,357,915 Land, Plant, Building and Building
Improvements 18,116,708 $ 2,700,000 20,816,708 Vehicles and Equipment 573,836 573,836
$ 33,048,459 $ 2,700,000 $ $ 35,748,459
Balance Balance, December 31, December 31,
2014 illcreases Decreases 2015
2015 Fixed Capital
System and System Improvements $ 14,357,915 $ 14,357,915 Land, Plant, Building and Building
Improvements 18,116,708 18,116,708 Vehicles and Equipment 573,836 573,836
$ 33,048,459 $ $ $ 33,048,459
46
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 8 FIXED ASSETS (Continued)
B. Utility Funds Fixed Assets (Continued)
Sewer Utility Fund
2016 Fixed Capital
System and System hnprovements
2015 Fixed Capital
System and System hnprovements
Balance December 31,
2015
$ 3,655,428
Balance December 31,
2014
$ 3,655,428
47
illcreases Decreases
Increases Decreases
Balance, December 31 ,
2016
$ 3,655,428
Balance, December 31,
2015
$ 3,655,428
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 9 MUNICIPAL DEBT
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 utility capital fund projects. All bonds are retired in serial installments within the statutory period of usefulness. Bonds issued by the City are general obligation bonds, backed by the full faith and credit of the City. Bond anticipation notes, which are issued to temporarily fmance capital projects, must be paid off within ten years and four months or retired by the issuance of bonds.
The City's debt is summarized as follows:
Issued General
Bonds, Notes and Loans Water Utility
Bonds and Notes Sewer Utility Bonds, Notes and Loans
Less Funds Temporarily Held to Pay Bonds and Notes
Net Debt Issued
Authorized But Not Issued General
Bonds and Notes Water Utility
Bonds and Notes Sewer Utility Bonds and Notes
Net Bonds and Notes Issued and Authorized But Not Issued
$
$
48
49,968,660 $ 52,143,371
25,669,498 26,526,251
3,586,365 3,853,972
79,224,523 82,523,594
203,870 477,100
79,020,653 82,046,494
1,997,616 1,703,045
6,696,100 6,452,970
750,000
88,464,369 ;;,.$~.,;;9.;;.0,;;;,2.;,;02;;;,5;;,.;0;,;..9
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 9 MUNICIPAL DEBT (Continued)
Statutory Net Debt
The statement of debt condition that follows is extracted from the City's Annual Debt Statement and indicates a statutory net debt of2.11% and 2.12% at December 31, 2016 and 2015, respectively.
Gross Debt Deductions Net Debt 2016 General Debt $ 51,966,276 $ 91,978 $ 51,874,298
School Debt 19,025,000 19,025,000
Utility Debt 36,701,963 35,706,933 995,030
Debt Guarantees (Note 9) 12,210,000 12,210,000
Total $ 119,903,239 $ 67,033,911 $ 52,869,328
Gross Debt Deductions Net Debt
2015 General Debt $ 53,846,416 $ 715,208 $ 53,131,208
School Debt 20,080,000 20,080,000
Utility Debt 36,833,193 35,695,266 1,137,927
Debt Guarantees (Note 9) 13,235,000 13,235,000
Total $ 123,994,609 $ 69,725,474 $ 54,269,135
Statutory Borrowing Power
The City's remaining borrowing power under N.J.S. 40A:2-6, as amended, at December 31, was as follows:
3-1/2% of Equalized Valuation Basis (Municipal) Less: Net Debt
Remaining Borrowing Power
$
$
49
87,660,922 $ 52,869,328
89,686,822 54,269,135
34,791,594 $~~3,:;;5.:::,4,:;.;17:,:.6;,::8~7
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 9 MUNICIPAL DEBT (Continued)
A. Long-TermDebt
The City's long-term debt consisted of the following at December 31:
General Obligation Bonds
The City levies ad valorem taxes to pay debt service on general obligation bonds. General obligation bonds outstanding at December 31 are as follows:
2016 2015 $4,319,000,2006 Bonds, due in an annual installment of$275,000 on June 15,2016, interest at 4.25%. $ 275,000
$7,945,000, 2006 Refunding Bonds, due in an annual installment of$478,887on December 15,2016,
interest at 4.00%. These bonds were refunded in 2016. 5,447,932
$11,650,000,2011 Bonds, due in annual installments of $560,000 to $700,000 through
April 15, 2020, interest at 4.00%. $ 2,600,000 10,150,000
$4,994,538,2012 Refunding Bonds due in annual installments of$451,389 to $509,903 through
December I, 2023, interest at 2.125% to 3.00% 3,439,753 3,895,322
$7,425,000, 2013 Bonds, due in annual installments of $325,000 to $515,000 through
September 15,2032, interest at 3.00% to 4.00% 6,500,000 6,815,000
$1,720,000,2014 Refunding Bonds, due in annual installments of $230,000 to $270,000 through
June 15, 2023, interest at 3.00% to 4.00% 1,710,000 1,710,000
$9,460,000,2015 Bonds, due in annual installments of $350,000 to $700,000 through
August I, 2013, interest at 3.00% to 4.00% 9,l!O,OOO 9,460,000
$4,463,056,2015 Refunding Bonds, due in annual installments of$476,780 to $516,102 through
October!, 2024, interest at 4.00% to 4.25% 3,942,039 4,418,819
50
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 9 MUNICIPAL DEBT (Continued)
A. Long-Term Debt (Continued)
General Obligation Bonds (Continued)
$8,627,000,2016 Bonds, due in annual installments of$400,000 to $797,000 through August 1, 2031, interest at 3.00% to 4.00%.
$11,683,178, 2016 Refunding Bonds, due in annual installments of $484,404 to $1 ,179,92I through Aprill5, 2030, interest at 2.00% to 4.00%.
General Intergovernmental Loans Payable
$ 8,627,000
II,683,I78
$ 4 7,61 I ,970 "-$ ~=-'4,;;;,2,""1 7,;,;2;;,;.,0;.;7,;;.3
The City has entered into loan agreements with the State of New Jersey for the financing relating to the various projects within the City. The City levies ad valorem taxes to pay debt service on general intergovernmental loans issued. General intergovernmental loans outstanding at December 3 I are as follows:
$249,722, 1998 Green Acres Loan due in a Semi-annual installment of $8,407 in June, 2016, interest at 2.00%
$375,000, 1999 Green Acres Loan due in Semi-annual installments of$16,964 to $17,478 through August, 2018, interest at 2.00%
$4 77,200, 2006 Green Acres Loan due in Semi-annual installments of$I2,160 to $I4,690 through August, 2026, interest at 2.00%
$300,000, 2002 New Jersey Downtown hnprovement Zone Loan due in annual an installment of $20,000, interest free.
$750,000, 2003 New Jersey Redevelopment Authority Loan (Amortization schedule not determined at audit date)
51
$
$
$ 8,407
68,880 102,305
267,740 291,699
20,000 40,000
187,500 187,500
544,120 ;;;_$ ~~.;;.62;;;;;94',9.;;1.,;;.1
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 9 MUNICIPAL DEBT (Continued)
A. Long-Term Debt (Continued)
Utility Bonds
The City pledges revenue from operations to pay debt service on utility bonds issued. The water and sewer utility bonds outstanding at December 31 are as follows:
Water Utility
$2,775,000, 2006 Bonds, due in an annual installment of$165,000 on
June 15,2016, interest at 4.25%
$5,190,000, 2009 Refunding Bonds, due in annual installments of $655,000 to $680,000 through
December I, 2018, interest at 3.0% to 3.5%
$1,670,000,2014 Refunding Bonds, due in annual installments of $225,000 to $265,000 through June 15, 2023, intrest at 3.0% to 4.0%
Sewer Utility
Allocated $410,828,2006 Refunding Bonds, due in an annual installment of$27,664 on December 15, 2016.
These bonds were refunded in 2016.
Allocated $980,462, 2012 Refunding Bonds, due in annual installments of$88,611 to $100,097 through December 15, 2023
interest at 2.125% to 3.00%
Allocated $76,944, 2015 Refunding Bonds, due in annual
installments of $8,220 to $8,898 through October I, 2024 interest at 3.00% to 4.00%
Allocated $251 ,822, 2016 Refunding Bonds, due in annual installments of $23,269 to $26,889 through April 15, 2026, interest at 2.00% to 4.00%
52
$
$
$
$
$ 165,000
1,335,000 1,970,000
1,670,000 1,670,000
3,005,000 ;:;,$ ~=3 '"'80;;;5;,;, 0;;,;;0;;;;,0
$ 297,068
675,247 764,678
67,961 76,181
251,822
995,030 ;:;.$ ~....:,;1 ·~13~7~,9;,;;2~7
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 9 MUNICIPAL DEBT (Continued)
A. Long-Term Debt (Continued)
Sewer Utility Intergovernmental Loans Payable
The City has entered into loan agreements with the State of New Jersey for the fmancing relating to the improvement of the City's sewer infrastructure. The City pledges revenue from operations to pay debt service on utility intergovernmental loans issued. Utility intergovernmental loans outstanding of the sewer utility at December 31 are as follows:
$2,606,505, 2002 Environmental Infrastructure Loans, due in annual installments of$17,985 to $133,625 through August 1, 2022, interest at 3.00% to 5.25% $ 745,467 $ 859,252
The City's principal and interest for long-term debt issued and outstanding as of December 31, 2016 is as follows:
Calendar General Capital Water Utility Sewer Utilitv Year Principal Interest Principal Interest Principal Interest Total
2017 $ 3,409,140 $ 1,659,273 $ 880,000 $ 102,208 $ 244,462 $ 48,996 $ 6,344,079
2018 3,538,619 1,538,324 905,000 75,834 249,080 41,811 6,348,668
2019 3,625,761 1,415,333 225,000 44,189 253,776 34,549 5,598,608
2020 3,741,777 1,292,478 245,000 34,829 256,032 28,028 5,598,144
2021 3,867,901 1,162,898 245,000 25,075 261,390 21,176 5,583,440
2022-2026 16,968,392 3,755,212 505,000 20,641 475,757 23,295 21,748,297
2027-2031 12,302,000 1,267,950 13,569,950
2032 515,000 20,600 535,600
Amortization
Unavailable 187,500 187,500
$ 48,156,090 $ 12,112,068 $ 3,005,000 $ 302,776 $ 1,740,497 $ 197,855 $ 65,514,286
53
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 9 MUNICIPAL DEBT (Continued)
A. Long-Term Debt (Continued)
Advance Refundings of Debt
On September 30, 2016, the City issued $11,935,000 in General Obligation Refunding Bonds having an interest rate of 2.00% to 4.00%. These bonds were issued in order to advance refund certain principal maturities and certain interest payments of various General Obligation Refunding Bonds of the City. The total bond principal defeased was $12,210,000 and the total interest payments defeased to the call date was $4,388,594. The net proceeds of$13,336,762 (after payment of underwriting fees, insurance and other issuance costs) were used to purchase U.S. Government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments. As a result, the advance refunding met the requirements of an in-substance debt defeasance and the refunded bond liability was removed from the General Capital Fund and Sewer Utility Capital Fund. This advance refunding resulted in an increase of cash flows over the life of these bond issues in the amount $985,633; however, the economic gain (difference between the present value of the old and new debt service payments) was $987,853. The advanced refunding was undertaken to reduce total debt service payments over the next nine years by $1,180,685.
Debt Guarantees
Rahway Redevelopment Agency-Public Library Project
The Rahway Redevelopment Agency (the "Agency") is a public body corporate and politic created by the City pursuant to the Redevelopment Law by adoption of an ordinance on January 5, 2001. The City has designated the Agency as redeveloper of a public/private project to construct and operate a new free public library for the City's use. In connection with said project, the Agency on October 29, 2001 issued $12,000,000 City-secured Public Library project notes. Such project notes were subsequently refunded on October 17, 2002 by the issuance of $4,665,000 City-secured Public Library Revenue Bonds, Series 2002 and $5,780,000 City-secured Public Library Project Notes, Series 2002. The Series 2002 notes were then refunded on October 29, 2003 by the issuance of $3,500,000 Citysecured Public Library Project Notes, Series 2003. The Series 2003 notes were refunded on October 29, 2004 by the issuance of $2,000,000 City-secured Public Library Revenue Bonds, Series 2004, and $2,500,000 City-secured Public Library Project Notes, Series 2004. The Series 2004 Project Notes were subsequently retired on October 29, 2005 from grant proceeds received as part of the Library project. The Series 2002 bonds were refunded in 2012 through the issuance of $4,505,000 City-Secured Public Library Revenue Refunding Bonds. The Series 2004 bonds were refunded in 2014 through the issuance of $1 ,260,000 City-Secured Public Library Revenue Refunding Bonds. Said bonds and notes are secured through a "Use, Occupancy and Capital Grant Agreement" (the "Agreement"), between the Rahway Redevelopment Agency and the City of Rahway.
The obligation of the City to pay grants and to pay all other amounts provided for under the agreement and to perform its obligations under the Agreement shall be absolute and unconditional.
54
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 9 MUNICIPAL DEBT (Continued)
A. Long-Term Debt (Continued)
Debt Guarantees (Continued)
Rahway Redevelopment Agency-Public Library Proiect (Continued)
The cost aud expense of the performance by the City of its obligations under this Capital Grant Agreement and the incurrence of auy liabilities of the City under this Capital Graul Agreement, including, without limitation, the obligation for the payment of all Basic Grants and additional Grants and all other amounts required to be paid by the City under this Capital Graul Agreement, is a direct, general aud irrevocable obligation, full faith aud credit pledge of the City for which the City is obligated to make any required payments under this Capital Grant Agreement out of the first fimds becoming legally available for such purpose, and to provide fimds for such payments, if not otherwise available, from the levy of ad valorem taxes upon all the taxable property in the City without limitation as to rate or amount, which obligation is not subject to appropriation. As of December 31, 2016 aud 2015, the Agency had outstanding $4,075,000 aud $4,650,000, respectively, subject to the City guarantee.
Rahway Redevelopment Agency- Arts District Extension
On September 15, 2008, the Rahway Redevelopment Agency issued $5,950,000 in tax exempt project notes and $1,550,000 in taxable project notes. The notes, which are guaranteed by the City, were used to (i) refund the $4,000,000 principal balloon payment due on the UClA loan; (ii) provide $3,500,000 for the design and construction of au outdoor amphitheater in the Rahway Arts District; and (iii) pay costs associated with the issuance of such notes. These notes were renewed for an additional year on September 15, 2009 and again on September 15, 2010. On September 8, 2011, the Agency issued $5,075,000 in City-secured Arts District Extension Revenue Bonds. As of December 31, 2016 and 2015, the Agency had outstanding $4,045,000 and $4,310,000, respectively, subject to City guarantee.
Rahway Parking Authority
The Parking Authority of the City of Rahway (the "Authority") is a public body corporate and politic created pursuant to the Parking Authority Law. The Authority has determined to finance the construction of a new multilevel parking garage in the City of Rahway (the "Project") through the issuance of revenue bonds, notes or other debt obligations, in an aggregate principal amount not to exceed $6,000,000 (the "Obligations"). The Obligations shall be general obligations of the Authority payable solely from the revenues of the Authority, including revenues generated by the Project. The Obligations shall also be secured by an Ordinance of the City of Rahway adopted September 8, 2003 unconditionally and irrevocably guaranteeing the payment of principal of and interest on the Obligations and the City shall, if necessary, be obligated to levy ad valorem taxes upon all the taxable property within the City for the payment thereof, without limitation as to rate or amount.
On December 3, 2003, the Authority issued $5,800,000 City-guaranteed Parking Revenue Bonds, Series 2003, subject to this agreement. On May 14,2013, the Authority issued $4,745,000 to refimd the 2003 Bonds. As of December 31, 2016 aud 2015, the Authority had outstanding $4,090,000 and $4,275,000, respectively, subject to the City guarantee.
The parties agree to hold each other harmless for any loss, damage or claim incurred or asserted resulting from the negligence of either party in performing their duties and responsibilities under this Agreement.
55
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 9 MUNICIPAL DEBT (Continued)
A. Long-Term Debt (Continued)
Changes in Long-Term Municipal Debt
The City's long-term capital debt activity for the years ended December 31, 2016 and 2015 were as follows:
Balance, Balance, Due December 31 December 31, Within
2015 Additions Reductions 2016 One Year 2016 General Capital Fund:
Bonds Payable $ 42, I 72,073 $ 20,310,178 $ 14,870,281 $ 47,611,970 $ 3,330,602 lntergovernmental Loans Payable:
Community Affairs Loan 40,000 20,000 20,000 20,000 NJ Redevelopment Authority 187,500 187,500 Green Acres Loans 402,411 65,791 336,620 58,538
General Capital Fund Long-Term Liabilities $42,801,984 $20,310,178 $ 14,956,072 $ 48,156,090 $ 3,409,140
Water Utility Capital Fund: Bonds Payable $ 3,805,000 $ $ 800,000 $ 3,005,000 $ 880,000
Water Utility Capital Fund Long-Term Liabilities $ 3,805,000 $ $ 800,000 $ 3,005,000 $ 880,000
Sewer Utility Capital Fund: Bonds Payable $ 1,137,927 $ 251,822 $ 394,719 $ 995,030 $ 124,398 lntergovernmental Loans Payable: NJ Environmentallnfrastructure 859,252 113,785 745,467 120,064
Sewer Utility Capital Fund Long-Term Liabilities $ 1,997,179 $ 251,822 $ 508,504 $ 1,740,497 $ 244,462
56
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 9 MUNICIPAL DEBT (Continued)
A. Long-Term Debt (Continued)
Changes in Long-Term Municipal Debt (Continued)
2015 General Capital Fund:
Bonds Payable Intergovernmental Loans Payable:
Community Affairs Loan NJ Redevelopment Authority Green Acres Loans
General Capital Fund Long-Term Liabilities
Water Utility Capital Fund: Bonds Payable
Water Utility Capital Fund Long-Term Liabilities
Sewer Utility Capital Fund: Bonds Payable Intergovernmental Loans Payable: NJ Environmental Infrastructure
Sewer Utility Capital Fund Long-Tem1 Liabilities
Balance, December 31
2014
$ 35,465,625
60,000 187,500 475,231
$36,188,356
$ 4,580,000
$ 4,580,000
$ 1,269,375
966,597
$ 2,235,972
Additions
$ 13,923,056
$ 13,923,056
$
$
$ 76,944
$ 76,944
57
Balance, December 31,
Reductions 2015
$ 7,216,608 $ 42,172,073
20,000 40,000 187,500
72,820 402,411
$ 7,309,428 $42,801,984
$ 775,000 $ 3,805,000
$ 775,000 $ 3,805,000
$ 208,392 $ 1,137,927
107,345 859,252
$ 315,737 $ 1,997,179
$
$
$
$
$
$
Due Within
One Year
2,929,685
20,000
65,792
3,015,477
800,000
800,000
125,315
113,784
239,099
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 9 MUNICIPAL DEBT (Continued)
B. Short-Term Debt
The City's short-term debt activity for the years ended December 31, 2016 and 2015 was as follows:
Bond Antici[!ation Notes Balance,
Rate Maturity December 31, Renewed/ Retired/
00 Date 2015 Issued Redeemed
2016 General Capital Fund
Pumose
Road Resurfacings 2.00% 8/5/2016 $ 1,587,708 $ 1,587,708
Various General Improvements 1.50% 8/7/2015 3,352,129 3,352,129
Acquisitions and Improvements within a Duly
Designated Redevelopment Area 2.00% 8/5/2016 750,000 750,000
DPW and Fire Equipment 2.00% 8/5/2016 522,500 522,500
Traffice Maintenance Pickup Truck 1.50% 8/712015 147,250 147,250
Various High School Park Improvements 2.00% 8/5/2016 704,000 704,000
Sidewalk Replacement Program 2.00% 8/5/2016 142,500 142,500
Athletic Field Improvements 2.00% 8/5/2016 1,238,000 1,238,000
Tax Appeal Refunding -Merck 2.00% 8/5/2016 350,000 350,000
Imprvts. To 911 Dispatch Center 2.00% 8/5/2016 247,500 247,500
Acq. Of Police Ballistic Equipment 2.00% 8/5/2016 38,000 38,000 Investigation of Groundwater
Contamination and Remediation 2.00% 8/5/2016 190,400 190,400
Asbestos Remediation 2.00% 8/5/2016 71,400 71,400 Acquisition and Installation of
Police Body Cameras 1.50% 8/3/2017 $ 94,430 2015 Road Improvements 1.50% 8/3/2017 551,595 Various 2015 Improvements 1.50% 8/3/2017 904,760 Improvements to Crosswalk - East
Milton and Lenox 1.50% 8/3/2017 47,500 Environmental Remediation- Various 1.50% 8/3/2017 214,285
9,341,387 1,812,570 9,341,387
58
Balance,
December 31,
2016
$ 94,430 551,595
904,760
47,500 214,285
1,812,570
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 9 MUNICIPAL DEBT (Continued)
B. Short-Term Debt (Continued)
Bond Anticination Notes (Continued)
Balance, Balance,
Rate Maturity December 31, Renewed/ Retired/ December 31,
Gfl Date 2015 Issued Redeemed 2016
2016
Water Utility Caoital Fund
Pumose Various Water Improvements 2,00% 6/29/2017 $ 2,325,174 $ 2,279,911 $ 2,325,174 $ 2,279,911
Various Water Improvements ],50% 6/29/2017 3,027,570 2,957,706 3,027,570 2,957,706
Monroe St. Bridge Water Improvements LSO% 8/3/2017 146,202 144,303 146,202 144,303
Replace Water Main- Hamilton St. ],50% 8/3/2017 1,309,000 1,275,436 1,309,000 1,275,436
Water Treatment Plan Improvements 2.00% 6/29/2017 1,332,874 I ,280,242 1,332,874 1,280,242 Water Treatment Plan Improvements 0.00% 6/29/2017 14,580,431 14,726,900 14,580,431 14,726,900
22,721,251 22,664,498 22,721,251 22,664,498
Sewer Utility Capital Fund
Pumose
Sewer System Improvements L50% 8/3/2017 573,493 565,986 573,493 565,986
Impvts. To Donal Avenue Storm Sewer L50% 8/3/2017 133,300 129,882 133,300 129,882
Emergency Sinkhole Repair ],50% 8/3/2017 500,000 500,000 500,000 500,000
Flood Control Mitigation ],50% 8/3/2017 300,000 300,000 300,000 300,000 Storm Sewer - Kline Place ],50% 8/3/2017 350,000 350,000 350,000 350,000
1,856,793 1,845,868 1,856,793 1,845,868
Total Bond Anticipation Notes $ 33,919,431 $ 26,322,936 $ 33,919,431 $ 26,322,936
59
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 9 MUNICIPAL DEBT (Continued)
B. Short-Term Debt (Continued)
Bond Anticipation Notes (Continued)
Rate
00 2015
General CaQital Fund
Pumose
Road Resurfacings 2.00%
Streetscape Improvements 1.50%
Various General Improvements 1.50%
Acquisition of Equipment 1.50%
Acquisitions and Improvements within a Duly
Designated Redevelopment Area 2.00%
DPW and Fire Equipment 2.00%
Traffice Maintenance Pickup Truck 1.50%
Various High School Park Improvements 2.00%
Sidewalk Replacement Program 2.00%
Athletic Field Improvements 2.00%
Groundwater Remediation at Caniage
City Site 1.50%
Basketball Court Renovations 1.50%
Demolition and Improvements to
Various Redevelopment Properties 1.50%
Tax Appeal Refunding -Merck 2.00%
Acquisition of Fire Pumper and
Rebuild Street Sweeper 1.50%
Improvements to Elm Avenue 1.50%
Imprvts. To 911 Dispatch Center 2.00%
Acq. Of Police Ballistic Equipment 2.00% Investigation of Groundwater
Contamination and Remediation 2.00% Asbestos Remediation 2.00%
Maturity
Date
8/5/2016
8/7/2015
8/7/2015
8/7/2015
8/5/2016
8/5/2016
8/7/2015
8/5/2016
8/5/2016
8/5/2016
8/7/2015
8/7/2015
8/7/2015
8/5/2016
8/7/2015
8/7/2015
8/5/2016
8/5/2016
8/5/2016 8/5/2016
60
Balance, Balance,
December 31, Renewed/ Retired/ December 31,
2014 Issued Redeemed 2015
$ 3,202,065 $ 1,587,708 $ 3,202,065 $ 1,587,708
150,000 150,000
5,098,302 3,352,129 5,098,302 3,352,129
121,600 121,600
3,100,000 750,000 3,100,000 750,000
522,500 522,500 522,500 522,500
147,250 147,250 147,250 147,250
514,000 704,000 514,000 704,000
142,500 142,500 142,500 142,500
2,238,000 1,238,000 2,238,000 1,238,000
200,000 200,000
190,000 190,000
285,000 285,000
700,000 350,000 700,000 350,000
500,000 500,000
238,000 238,000
247,500 247,500 247,500 247,500
38,000 38,000 38,000 38,000
190,400 190,400 190,400 190,400 71,400 71,400
17,825,117 9,341,387 17,825,117 9,341,387
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 9 MUNICIPAL DEBT (Continued)
B. Short-Term Debt (Continued)
Bond Antici2ation Notes (Continued)
Balance, Balance, Rate Maturity December 31, Renewed/ Retired/ December 31,
00 Date 2014 Issued Redeemed 2015
2015 Water Utility Ca2ital Fund
Purpose
Various Water Improvements 1.25% 9/29/2015 $ 2,370,437 $ 2,370,437
Various Water Improvements 2.00% 8/5/2016 2,216,482 $ 5,352,744 2,216,482 $ 5,352,744
Monroe St. Bridge Water Improvements 2.00% 8/5/2016 148,101 146,202 148,101 146,202 Replace Water Main- Hamilton St. 2.00% 8/5/2016 1,309,000 1,309,000 1,309,000 1,309,000
Water Treatment Plan Improvements 2.00% 8/5/2016 1,332,563 1,332,874 1,332,563 1,332,874 Water Treatment Plan Improvements 0.0775% 6/29/2016 14,580,431 14,580,431
7,376,583 22,721,251 7,376,583 22,721,251
Sewer Utility Capital Fund
Puroose
Sewer System Improvements 2.00% 8/5/2016 581,000 573,493 581,000 573,493 Impvts. To Donal Avenue Storm Sewer 2.00% 8/5/2016 133,300 133,300 133,300 133,300
Emergency Sinkhole Repair 2.00% 8/5/2016 300,000 500,000 300,000 500,000 Flood Control Mitigation 2.00% 8/5/2016 300,000 300,000 300,000 300,000 Storm Sewer - Kline Place 2.00% 8/5/2016 350,000 350,000
1,314,300 1,856,793 1,314,300 1,856,793
Total Bond Anticipation Notes $ 26,516,000 $ 33,919,431 $ 26,516,000 $ 33,919,431
The purpose of these short-term borrowings was to provide resources for capital construction, acquisitions or improvement projects and other purposes permitted 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 and sewer utility activities are accounted for in the Water and Sewer Utility Capital Fund.
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 than 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.
61
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2016 AND 2015
NOTE 10 CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS
As of December 31, the City had the following commitments with respect to unfinished capital projects:
Capital Project
Water Treatment Plant Filtration Improvements 2016 Road Resurfacing Project
New Interconnection Pipeline Water Treatment Plant Filter System Improvements Sinkhole Repair Kline Place Drainage Improvements Roadway Resurfacing
NOTE 11 OTHER LONG-TERM LIABILITIES
A. Compensated Absences
Construction Commitment
$7,459,226 573,342
$366,757 166,161 77,763 81,080
277,877
Estimated Date of
Completion
2018 2017
2016 2016 2016 2016 2016
Under the existing policies and labor agreements of the City, employees are allowed to accumulate (with certain restrictions) unused vacation benefits 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. In addition, the City has entered into agreements with certain employees allowing for the deferral of a portion of such employees' salary increases. These salary deferrals will be paid in full upon termination of employment.
It is estimated that the current cost of such unpaid compensation and salary related payments would approximate $7,518,476 and $7,342,267 at December 31, 2016 and 2015, respectively. These amounts which is are considered material to the financial statements, are not reported either as an expenditure or liability.
As of December 31, 2016 and 2015, the City has reserved in the Other Trust Fund $631,318 and $632,977, respectively to fund compensated absences in accordance with NJSA 40A:4-39.
B. Deferred Pension Obligation
During the year ended December 31, 2009 the City elected to contribute 50% of its normal and accrued liability components of the PFRS and PERS obligations and deferred the remaining 50% in accordance with P.L. 2009, c.19. The deferred amount totaled $1,554,082 and will be paid back with interest over 15 years beginning in the 2012 year. The City is permitted to payoff the deferred PFRS and PERS pension obligations at any time. It is estimated that the total deferred liability including accrued interest (at 7.90% effective July I, 2012 and 8.25% prior to July 1, 2012) at December 31, 2016 and 2015 is $1,441,069 and $1,563,008, respectively.
62
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 11 OTHER LONG-TERM LIABILITIES (Continued)
Changes in Other Long-Term Liabilities
Under the regulatory basis of accounting, certain other long-term liabilities which may be considered material to the financial statements are not reported either as an expenditure or a liability. However, under the regulatory basis of accounting, these other long-term liabilities and related information are required to be disclosed in the notes to the fmancial statements in confomrity with the disclosure requirements of the Governmental Accounting Standards Board.
The City's changes in other long-term liabilities for the years ended December 31, 2016 and 2015 were as follows:
Compensated Absences Deferred Pension Obligation Net Pension Liability - PERS Net Pension Liability - PFRS
Balance, December 31,
2015 Additions
$ 7,342,267 $ 1,563,008
20,004,845 65,229,534
759,536 $ 111,476
8,938,022 11,053,197
Balance, December 31,
Reductions 2016
583,327 $ 233,415 842,878
3,122,639
7,518,476 1,441,069 $
28,099,989 73,160,092
Due Within
One Year
235,730
Total Other Long-Term Liabilities $94,139,654 $ 20,862,231 $ 4,782,259 $ 110,219,626 $ 235,730
Compensated Absences Deferred Pension Obligation Net Pension Liability- PERS Net Pension Liability- PFRS
Balance, December 31,
2014
$ 7,567,201 1,675,114 $
17,275,682 47,044,318
Additions
120,512 3,495,325
21,368,468
$
Reductions
Balance, December 31,
2015
224,934 $ 232,618 766,162
7,342,267 1,563,008 $
20,004,845 65,229,534 3,183,252
Due Within
One Year
233,415
Total Other Long-Term Liabilities $73,562,315 $ 24,984,305 $ 4,406,966 $ 94,139,654 $ 233,415
63
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2016 AND 2015
NOTE 12 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 City employees who are eligible for pension coverage.
Consolidated Police and Firemen's Pension Fund (CPFPF) - established in January 1952, under the provisions ofN.J.S.A. 43:16 to provide coverage to municipal police and firemen who were appointed prior to July 1, 1944. The fund is a closed system with no active members. CPFPF is a cost-sharing plan with special funding situations.
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 I 0 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 ofN.J.S.A. 43: !SA 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 I 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 City 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 I, 2007. Membership is mandatory for such individuals with vesting occurring after one (1) year of membership. This provision was extended by Chapter 1, 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. 20 II, 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.
64
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Other Pension Funds (Continued)
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 refonn 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.
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/treasmy/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 ofinvestment, P.O. Box 290, Trenton, New Jersey 08625-0290, or at www.state.niltreasury/doinvest.
Funded Status and Funding Progress
As of July I, 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 52.0 I percent and $20.7 billion, respectively.
65
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2016 AND 2015
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Funded Status and Funding Progress (Continued)
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.
Actuarial Methods and Assumptions
In the July 1, 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 City, 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:
2016 2015 2014
CPFPF
$ 18,045 18,059 27,640
$ 3,183,252 2,872,492 2,859,218
$
66
766,162 751,264 676,787
$ 5,917 3,086 3,627
CITY OF RAHWAY NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 12 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)
At December 31, 2016 and 2015, the City reported a liability of $28,099,989 and $20,004,845, 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 City's proportionate share of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating govermnental entities, actuarially determined. As of the measurement date of June 30, 2016, the City's proportionate share was .09487 percent, which was an increase of .00576 percent from its proportionate share measured as of June 30, 2015 of .08911 percent.
For the years ended December 31, 2016 and 2015, the pension system has determined the City's pension expense to be $2,844,737 and $960,884, respectively, for PERS based on the actuarial valuation which is more than the actual contributions reported in the City's financial statements of $766,162 and $751,264, respectively. At December 31, 2016 and 2015, the City's deferred outflows of resources and deferred inflows of resources related toPERS pension which are not reported on the City'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 $ 522,575 $ 477,245
Changes of Assumptions 5,820,817 2,148,361 Net Difference Between Projected and Actual
Earnings on Pension Plan Investments 1071478 $ 321,639 Changes in Proportion and Differences Between
City Contributions and Proportionate Share
of Contributions 1,188,941 $ 394,946 322,775 501,114
Total $ 8,603,811 $ 394,946 $ 2,948,381 $ 822,753
At December 31, 2016 the amounts reported as deferred outflows of resources and deferred inflows of resources related to PERS pension will be recognized in pension expense as follows:
Year Ending
December 31. Total
2017 $ 1,838,040 2018 1,838,040 2019 2,095,424 2020 1,786,434 2021 650,927
Thereafter
$ 8,208,865
67
CITY OF RAHWAY NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2016 AND 2015
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Pnblic Employees Retirement System (PERS) (Continued)
Actuarial Assumptions
The City'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:
PERS 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.
68
CITY OF RAHWAY NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 12 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%
69
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%
CITY OF RAHWAY NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 12 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 defined 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 1, 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 City'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 City'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% aud 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 City's Proportionate Share of the PERS Net Pension Liability $ 34,433,257 $ 28,099,989 $ 22,871,327
1% Current 1% Decrease Discount Rate Increase {3.90%} {4.90%} {5.90%}
2015
City's Proportionate Share of the PERS Net Pension Liability $ 24,863,575 $ 20,004,845 $ 15,931,321
The sensitivity analysis was based on the proportionate share of the City's net pension liability at December 31, 2016 and 2015. A sensitivity analysis specific to the City's net pension liability was not provided by the pension system.
70
CITY OF RAHWAY NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER31, 2016 AND 2015
NOTE 12 EMPLOYEE RETIREMENT SYSTEMS (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Peusious
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. The financial report may be accessed via the New Jersey, Division of Pensions and Benefits, website at www.state.nj.us/treasury/pensions.
Police and Firemen's Retirement System (PFRS)
At December 31, 2016 and 2015, the City reported a liability of $73,160,092 and $65,229,534, 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 1, 2015 and 2014, respectively. The City's proportionate share of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating governmental entities, actuarially determined. As of the measurement date of June 30, 2016, the City's proportionate share was .38298 percent, which was a decrease of .00863 percent from its proportionate share measured as of June 30, 2015 of .39161 percent.
For the years ended December 31, 2016 and 2015, the pension system has determined the City pension expense to be $7,652,036 and $5,669,411, respectively, for PFRS based on the actuarial valuation which is more than the actual contributions reported in the City's financial statements of $3,183,252 and $2,872,492, respectively. At December 31, 2016 and 2015, the City's deferred outflows of resources and deferred inflows of resources related to PFRS pension which are not reported on the City'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 $ 479,575 $ 562,625
Changes of Assumptions $ 10,133,274 $ 12,042,992 Net Difference Between Projected·and Actual
Earnings on Pension Plan Investments 5,126,180 1,!35,263 Changes in Proportion and Differences Between City Contributions and Proportionate Share
of Contributions 1,506,688 2,216,119 1,933,5!2 1,609,328
Total $ 16,766,142 $ 2,695,694 $ 13,976,504 $ 3,307,216
71
CITY OF RAHWAY NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 12 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, 2016 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, Total
2017 $ 3,381,556
2018 3,381,556
2019 4,581,734 2020 2,758,266
2021 (32,664) Thereafter
$ 14,070,448
Actuarial Assumptions
The City's total pension liability reported for the year ended December 31, 2016 was based on the June 30, 2016 measurement date as detennined 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 detennined 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:
PFRS 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 the results of an actuarial experience study for the period July I, 2010 to June 30, 2013.
72
CITYOFRAIIWAY NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 12 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 m'\ior 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 2015 Long-Term Long-Term
Target Expected Real Target Expected Real Asset Class Allocation Rate of Return Allocation Rate of Return
Cash 5.00% 0.87% 5.00% 1.04%
U.S. Treasuries 1.50% 1.74% 1.75% 1.64%
Investment Grade Credit 8.00% 1.79% 10.00% 1.79%
Mortgages 2.00% 1.67% 2.10% 1.62%
High Yield Bonds 2.00% 4.56% 2.00% 4.03% Inflation-Indexed Bonds 1.50% 3.44% 1.50% 3.25%
Broad US Equities 26.00% 8.53% 27.25% 8.52%
Developed Foreign Equities 13.25% 6.83% 12.00% 6.88%
Emerging Market Equities 6.50% 9.95% 6.40% 10.00% Private Equity 9.00% 12.40% 9.25% 12.41% Hedge Funds/ Absolute Return 12.50% 4.68% 12.00% 4.72% Real Estate (Property) 2.00% 6.91% 2.00% 6.83% Commodities 0.50% 5.45% 1.00% 5.32%
Global Debt ex US 5.00% -0.25% 3.50% -0.40% REIT 5.25% 5.63% 4.25% 5.12%
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%
73
CITY OF RAHWAY NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31,2016 AND 2015
NOTE 12 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 1, 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 AAI Aa or higher.
Sensitivity of Net Pension Liability
The following presents the City'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 City'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 City's Proportionate Share of the PFRS Net Pension Liability $ 94,334,574 $ 73,160,092 $ 55,893,575
1% Current 1%
Decrease Discount Rate Increase
{4.79%) {5.79%) (6.79%)
2015
City's Proportionate Share of the PFRS Net Pension Liability $ 85,993,235 $ 65,229,534 $ 48,298,591
The sensitivity analysis was based on the proportionate share of the City's net pension liability at December 31,2016 and 2015. A sensitivity analysis specific to the City's net pension liability was not provided by the pension system.
74
CITY OF RAHWAY NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 12 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 City 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 City 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 City'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 City for the PFRS special funding situation is $6,143,633 and $5,720,411, 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 City for the PFRS special funding situation is $784,687 and $713,539, respectively, which is more than the actual contributions the State made on behalf of the City of $235,406 and $297,777, respectively. The State's proportionate share attributable to the City 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 City'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/treasurv/pensions.
NOTE 13 POST-RETIREMENT MEDICAL BENEFITS
The State of New Jersey sponsors and administers the post-retirement health benefit program plans for participating municipalities including the City. The plans are classified as either single employer plans or cost sharing multiple employer defmed benefit plans depending on the plan the eligible employee is covered under.
75
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 13 POST-RETIREMENT MEDICAL BENEFITS (Continued)
As a result of implementing Governmental Accounting Standards Board (GASB) Statement No. 43, Financial Reporting for Post-employment Benefit Plans Other than Pension Plans (OPEB), effective for Fiscal Year 2007, the State Health Benefits Program (SHBP), and the Prescription Drug Program (PDP), and Post-Retirement Medical (PRM) of the PERS and the Teacher's Pension and Annuity (TP AF) are combined and reported as Pension and Other Employee Benefit Trust Funds in the State's Comprehensive Annual Financial Report (CAFR). Specifically, SHBPState, PDP-State, and the PRM of the PERS are combined and reported as Health Benefits Program Fund - State classified as a single employer plan. The SHBP-Local, PDP-Local, and the PRM of the TPAF-Local are combined and reported as Health Benefits Program Fund -Local Government classified as a cost sharing multiple-employer plan. The post-retirement benefit programs had a total of 584 state and local participating employers and contributing entities for Fiscal Year 2016.
The State of New Jersey sponsors and administers the following health benefit program covering substantially all local government employees from local participating employers.
State Health Benefits Program Funds (HBPF) - Local Government (including Prescription Drug Program Fund) -Certain local employers who participate in the State Health Benefits Program provide health insurance coverage to their employees at retirement. Under provisions of P.L. 1997, c.330, the State of New Jersey provides partially funded benefits to local police officers and firefighters who retire with 25 years of service (or on disability) from an employer who does not provide coverage. Retirees who are not eligible for employer paid health coverage at retirement can continue in the program by paying the cost of the insurance for themselves and their covered dependents. Also, local employees are eligible for the PDP coverage after 60 days of employment.
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 the above Fund. The financial reports may be assessed via, the New Jersey, Division of Pensions and Benefits website at www .state.nj .us/treasury/pensions.
Basis of Accounting
The financial statements of the health benefit programs are prepared on the accrual basis of accounting. Employer contributions are recognized when payable to the health benefit programs. Benefits or refunds are recognized when due and payable in accordance with the terms of the health benefit programs.
Investment Valuation
Investments are reported at fair value. Investments that do not have an established market are reported at estimated fair values.
Funded Status and Funding Progress
As of July 1, 2015, the most recent actuarial valuation date, the State had a $84.3 billion unfunded actuarial liability for other postemployment benefits (OPEB) which is made up of $25.9 billion for state active and retired members, $16.8 billion for local active and retired members and $41.6 billion for education employees and retirees that become the obligation of the State of New Jersey upon retirement.
'
76
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 13 POST-RETIREMENT MEDICAL BENEFITS (Continued)
Funded Status and Funding Progress (Continued)
The funded status and funding progress of the OPEB 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 OPEB in effect at the time of each valuation and also consider the pattern of the sharing of costs between the employer and members at the 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.
Actuarial Methods and Assumptions
In the July I, 2015 OPEB actuarial valuation, the projected unit credit was used as the actuarial cost method, and the market value was used as asset valuation method for the OPEB. The actuarial assumptions included an assumed investment rate of return of 4.50 percent.
Post-Retirement Medical Benefits Contribution
P.L. 1987, c. 384 and P.L. 1990, c.6 required the Public Employees' Retirement System to fund post-retirement medical benefits for those State and participating local government employees who retire after accumulating 25 years of credited service or on a disability retirement. As ofJune 30, 2016, there were II 0,512 retirees receiving post-retirement medical benefits, and the State contributed $1.37 billion on their behalf. The cost of these benefits is funded through contributions by the State and participating local governments in accordance with P.L. 1994, c.62. Funding of postretirement medical benefits changed from a pre-funding basis to a pay-as-you-go basis beginning in Fiscal Year 1994.
P.L. 1977, c. 136 provides for the State and participating local governments to pay health benefits on a pay-as-you-go basis for all enrolled retired employees, regardless of retirement date, under two provisions. The first is for employees whose pensions are based on 25 years or more of credited service (except those who elect a deferred retirement). The second is for retired employees who are eligible for a disability retirement regardless of years of service. The State and participating local governments contributed $181.9 million for 10,725 eligible retired members for Fiscal Year 2016. This benefit covers the Police and Firemen's Retirement System.
P.L. 1997, c. 330 provides paid post-retirement health benefits to qualified retirees of the Police and Firemen's Retirement System and the Consolidated Police and Firemen's Pension Fund and to dependents of qualified retirees. The State and participating local governments are responsible for 80 percent of the premium for the category of coverage elected by the retiree under the State managed care plan or a health maintenance organization participating in the program, whichever provides the lower charge. The State and participating local governments contributed $48.3 million in Fiscal Year 2016 to provide benefits under Chapter 330 to qualified retirees.
77
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 13 POST-RETIREMENT MEDICAL BENEFITS (Continued)
Post-Retirement Medical Benefits Contribution (Continued)
The State sets the employer contribution rate based on a pay-as-you-go basis rather than the annual required contribution of the employers (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) of the plan over a period not to exceed thirty years. The City's contributions to the State Health Benefits Program Fund-Local Government for post-retirement benefits for the years ended December 31, 2016, 2015 and 2014 were $3,333,962, $3,159,656 and $2,952,040, respectively, which equaled the required contributions for each year.
NOTE 14 RISK MANAGEMENT
The City is exposed to various risks of loss 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 City has obtained commercial insurance coverage to guard against these events to minimize the exposure to the City should they occur.
The City of Rahway is a member of the Garden State Municipal Joint Insurance Fund (GSJIF). The joint insurance fund is 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 Fund is a risk-sharing public entity pool.
The relationship between the City and the insurance fund is governed by a contract and by-laws that have been adopted by resolution of each unit's governing body. The City is contractually obligated to make all annual and supplementary contributions to the insurance fund, to report claims on a timely basis, to cooperate with the management of the fund, its claims administrator and attorneys in claims investigation and settlement, and to follow risk management procedures as outlined by the fund. Members have a contractual obligation to fund any deficit of the fund attributable to a membership year during which the municipality was a member.
The fund provides 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 fmancial statements of the fund can be obtained by contacting the 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.
78
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 14 RISK MANAGEMENT (Continued)
The City has elected to fund its New Jersey Unemployment Compensation Insurance under the "Benefit Reimbursement Method". Under this plan the City 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 City is billed quarterly for amounts due to the State. The following is a summary of City contributions, employee contributions, reimbursements to the State for benefits paid and the ending balance of the City's unemployment compensation trust fund for the current and previous two years:
Year Ended City Employee Amount Ending December 31, Contributions Contributions Reimbursed Balance
2016 $ 26,538 $ 11,799 $ 105,482 2015 17,580 12,862 90,743 2014 $ 27,864 40,434 13,174 86,025
NOTE 15 CONTINGENT LIABILITIES
The City 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 City's Attorney, the potential claims against the City not covered by insurance policies would not materially affect the financial condition of the City.
Pending Tax Appeals- Various tax appeal cases were pending in the New Jersey Tax Court at December 31, 2016 and 2015. Amounts claimed have not yet been determined. The City is vigorously defending its assessments in each case. Under the accounting principles prescribed by the Division of Local Government Services, Department of community Affairs, State of New Jersey, the City does not recognize a liability, if any, until these cases have been adjudicated. The City expects such amounts, if any, could be material. As of December 31, 2016 and 2015, the City reserved $1,400,000 and $1,400,000, respectively in the Current Fund for tax appeals pending in the New Jersey Tax Court. Funding of any ultimate liability would be provided for in succeeding years' budget or from fund balance.
Federal and State Awards -The City participates in a number of federal and state programs that are fully or partially funded by grants received from other governmental 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 City 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 City believes that disallowed expenditures, if any, based on subsequent audits will not have a material effect on the overall fmancial position of the City.
79
CITY OF RAHWAY NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2016 AND 2015
NOTE 16 FEDERAL ARBITRAGE REGULATIONS
The City is subject to Section 148 of the lntemal Revenue Code as it pertains to the arbitrage rebate on all tax-exempt obligations, both long and short-term debt. Under the 1986 Tax Reform Act, the lntemal 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 City had no estimated arbitrage earnings due to the IRS.
NOTE 17 PUBLIC/PRIVATE PARTNERSHIPS
The City preseotly owns a water supply, treatment, transmission, storage and distribution system, and a billing and collections department (the "Water System"). The City has entered into a management services agreemeot with United Water Operations, lnc. for the operation, management, maintenance and repair of the Water System in accordance with the provisions of the "New Jersey Water Supply Public-Private Contracting Act" set forth at N.J.S.A. 58:26-19 et ~·
Pursuant to the terms of the agreement, the City will retain ownership of the Water System and United Water Operations, lnc. will operate, manage, maintain and repair the Water System for a period of tweoty (20) years, beginning September 29, 1999. 1n exchange for these services, the City will pay United Water Operations, lnc. an annual Fixed Management Fee. The agreement does not provide for the payment of any concession fees by United Water Operations, lnc. to the City.
NOTE 18 TAX ABATEMENTS
For the years ended December 31, 2016 and 2015, the City provided property tax abatements through certain programs authorized under State statutes.
• The Long Term Tax Exemption Law (NJSA 40A:20 et.seq.) is focused on broad areas of redevelopment. It allows for a longer abatement term to carry out a larger development plan through declaring an area as being "in need of redevelopment". These long-term property abatements may last up to 30 years from completion of a project or 35 years from execution of the financial agreement. The process is initiated when the municipality passes a resolution calling for the municipal planning board to study the need for designating an area "in need of redevelopment". Upon adopting the planning board's recommendations and formalizing the redevelopment area designation, a municipality adopts a redevelopment plan, engages redevelopment entities to carry out the plan, and may authorize long-term tax abatements in the process. Developers submit abatement applications to the governing body for review. The financial agreement is approved through adoption of a local ordinance. The agreemeot exempts a project from taxation, but requires a payment in lieu of taxes (PILOTs) in an amount based generally on a percentage of project costs or revenue generated by the project, depeoding on the type of project. For the years ended December 31,2016 and 2015 the City abated property taxes totaling $4,248,063 and $2,550,394, respectively under the LTTE program. The City received $2,293,054 and $968,531 in PILOT payments under this program for the years ended December 31, 2016 and 2015, respectively.
80
CITY OF RAHWAY STATEMENT OF CASH- TREASURER
Balance, December 3 I, 2015
Increased by: Taxes Receivable Tax Title Liens Revenue Acct. Receivable Other Liens Receivable Prepaid Taxes Tax Overpayments Grants Receivable Non Budget Revenue Due from State-Senior and Veterans Deductions Receipts from Animal Control Trust Fund Receipts from Water Utility Operating Fund Receipts from Sewer Utility Operating Fund Other Trust Fund Receipts Deposited in Current Fund General Capital Fund Receipts Deposited in Current Fund Reserve for FEMA Reimbursements Unappropriated Reserves for Grants
Decreased by: 2016 Budget Appropriations 2015 Appropriation Reserves Encumbrances Payable Change Fund County Taxes County Added Taxes Local District School Taxes Special Improvement District Taxes Appropriated Reserves for Grants Tax Overpayments Payments to Rahway Redevelopment Agency Refund of Prior Year Revenue Payments to Other Trust Fund Payments to General Capital Fund Payments to Water Utility Capital Fund Payments to Sewer Utility Capital Fund Water Utility Operating Fund Expenditures Paid by Current Fund Sewer Utility Operating Fund Expenditures Paid by Current Fund
Balance, December 31, 20 I 6
81
EXHIBIT A-4
$ 14,146,039
$ 93,I 18,912 38,759
I2,364,069 26,741
323,989 93,496
I 77,801 369,941 206,248
12,453 2,699,470
56,440 825,630 896,760 199,I02 198,602
111,608,413
125,754,452
47,747,426 579,650 563,55 I
100 13,639,824
20,759 42,713,939
130,000 250,448 154,500 128,434 301,361
1,200,478 1,434,094
320,418 35I,434
1,083,225 207,601
110,827,242
$ 14,927,2IO
Tax Collector
City Clerk
Health Officer
Municipal Court
Recreation
CITY OF RAHWAY STATEMENT OF CHANGE FUNDS
Balance, December 31,
2015
$ 1,000
20
25
250
$
$ 1,295 $
82
EXHIBIT A-5
Balance, December 31,
Increased: 2016
$ 1,000
20
25
250
100 100
100 ~$~~~1"',3~9,;;,5
Municipal Alliance Program
Drug Free Communities
Assistance to Firefighters
CITY OF RAHWAY STATEMENT OF GRANTS RECEIVABLE
Balance, 2016
December 31, Revenue
2015 Realized
$ 26,689
250,000 $ 125,000
1,097
County of Union- Police Body Cameras 30,000
Pandemic Influenza Grant 44,114
NJ Health Dept Grant 20
Union County Recreation Grant 69,900
Union County History Grant 1,125
R W J Foundation 500
$ 391,820 $ 156,625
83
EXHIBIT A-6
Balance,
Cash December 31,
Receipts 2016
$ 26,689
49,587 $ 325,413
1,097
30,000
44, I 14
20
69,900
1,125
500
$ 177,801 $ 370,644
CITY OF RAHWAY STATEMENT OF DUE FROM STATE OF NEW JERSEY
SENIOR CITIZEN AND VETERAN DEDUCTIONS
Balance, December 31, 2015
Increased by: Senior Citizens' and Veterans'
Deductions Per Tax Billings
Senior Citizens' and Veterans'
Deductions Allowed by Tax Collector
Decreased by: Cash Receipts
Senior Citizen and Veteran Deductions Disallowed by Tax Collector
Balance, December 31, 2016
84
$ 208,000
4,750
206,248
4,296
EXHIBIT A-7
$ 51,725
212,750
264,475
210,544
$ 53,931
Year
2014 2015
2016
Tax Yield
Balance, December 31,
2015
$ 4,840 1,781,541
1,786,381
$ 1,786,381
General Purpose Tax
$
$
Special Improvement District Tax Added Taxes (54:4-63.1 et seq.)
Tax Levy Special Improvement District Tax
2016
1=
93,247,071
93,247,071
Local District School Tax (Abstract) County Tax County Share of Added Taxes
Local Tax for Municipal Purposes Minimum Library Tax Additional Tax Levied
EXHIBIT A-8 CITY OF RAHWAY
STATEMENT OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY
Senior Senior Citizens' and Citizens' and
Veterans' Veterans' Transferred Balance, Added Deductions Collected In Deductions to Tax December 31, Taxes Disallowed 2015 2016 Allowed Cancelled Title Liens 2016
s 4,340 $ 500 $ 3,808 1,766,677 18,672
3,808 1,771,017 19,172
103,242 $ 4,296 $ 285,972 __ 9_1,347,895 s 212,750 $ 34,048 $ 61,306 1,412,638
$ 107,050 $ 4,296 $ 285,972 $ 93,118,912 s 212,750 $ 34,048 $ 61,306 s 1,431,810
Ana1vsis of 2016 Tax Levv
$ 93,116,780 130,291 103,242
$ 93,350,313
$ 130,000 42,753,589
$ 13,639,824 15,113
13,654,937
35,878,964 830,750 102,073
36,811,787
$ 93,350,313
85
Balance, December 31,2015
Increased by: Transfers from Taxes Receivable
Interest and Costs on Tax Sale
Decreased by:
Redemptions
Balance, December 31, 2016
CITY OF RAHWAY STATEMENT OF TAX TITLE LIENS
$
STATEMENT OF PROPERTY ACQUIRED FOR TAXES
Balance, December 31, 2015
Balance, December 31, 2016
86
61,306
4,715
EXHIBIT A-9
$ 395,011
66,021
461,032
38,759
$ 422,273
EXHIBIT A-10
$ 2,644,300
$ 2,644,300
EXHIBIT A-ll
CITY OF RAHWAY STATEMENT OF REVENUE ACCOUNTS RECEIVABLE
Balance, Balance, December 31, Accrued in December 31,
2015 2016 Collected 2016
Licenses
Alcoholic Beverages $ 60,700 $ 60,700
Other 7,525 7,525
Fees and Pennits 127,284 127,284
Municipal Court
Fines and Costs $ 45,139 591,003 587,883 $ 48,259
Interest and Costs on Taxes 376,798 376,798
Medicare Reimbursement
Interest on Investments 44,348 44,348
Anticipated Utility Operating Surplus ~ Water Utility 334,739 334,739
Anticipated Utility Operating Surplus M Sewer Utility 114,174 114,174
Police Department Fees 95,399 95,399
Payments in Lieu of Taxes Lower Essex St. - Denholtz Management 476,902 476,902
Landmark- Block !57 Lot 1 571,377 571,377
Rahway Parking Authority 170,000 170,000
Rosegate 27,036 27,036
Housing Authority 53,932 53,932
Senior Citizen Housing 269,735 269,735
Meyers Senior Residence 72,052 72,052
Metro 231,015 231,015
Waters Edge 421,005 421,005
Comcast Cable Franchise Fee 92,836 92,836
Cellular Phone Tower Fees 401,588 401,588
Vacant/Foreclosure House Registration 403,500 403,500
Police Security- Administrative Fees 236,813 236,813
Planning Board Application Fees 5,745 5,745
Street Opening Permits 62,526 62,526
Motor Vehicle Fines 3,375 3,375
Uniform Construction Code Penalties 15,770 15,770
Uniform Construction Code Fees 436,464 436,464
Energy Receipts Taxes 3,162,741 3,162,741
Consolidated Municipal Property Tax Relief Aid 846,232 , 846,232
U.C.U.A Host Community Fees 2,350,000 2,350,000
Berkeley Heights Health Services Contract 71,837 71,837
Solid Waste Fees Rahway Housing Authority 37,000 37,000
Rahway Board of Education 40,000 40,000
Bulky Waste Fees
Kenilworth 75,080 75,080
Outside Health Services
Scotch Plains 68,328 68,328
Hillside 22,047 22,047
Winfield 8,975 8,975
Hotel Fees 180,392 180,392
$ 45,139 $ 12,566,273 $ 12,563,153 $ 48,259
Cash Receipts $ 12,364,069
Due from Other Trust Fees 199,084
$ 12,563,153
87
EXHIBIT A-12
CITY OF RAHWAY SCHEDULE OF OTHER LIENS RECEIVABLE
Balance, December 3 1 , 20 15 $ 36,679
Decreased by:
Redemptions 26,741
Balance, December 31, 2016 $ 9,938
EXHIBIT A-13
STATEMENT OF DUE FROM RAHWAY REDEVELOPMENT AGENCY
Balance, December 31, 20 15 $ 20,866
Increased by: Payments to Rahway Redevelopment Agency 128,434
Balance, December 31, 2016 $ 149,300
88
EXHIBIT A-14
CITY OF RAHWAY STATEMENT OF DEFERRED CHARGES- SPECIAL EMERGENCY
Not Less Than Balance, Amount Balance, Amount 1/5 of Amount December 31, Resulting from Reduced December 31,
Puroose Authorized Authorized 2015 2016 2016 2016
Terminal Pay $ 1,120,000 $ 224,000 $ 448,000 $ $ 224,000 $ 224,000
$ 1,120,000 $ 224,000 $ 448,000 $ - $ 224,000 $ 224,000
89
EXHIBIT A-15 Page 1
CITY OF RAHWAY STATEMENT OF 2015 APPROPRIATION RESERVES
Balance Cancelled Balance December 31, Encumbrances After Balance
2015 Payable Modification Expended Lapsed General Government
Department of Administration Salaries and Wages $ 810 $ 8,000 $ 810 $ 810
Other Expenses 23,002 28,002 $ 27,230 772
Mayor's Office Salaries and Wages 629 629 629
Municipal Council Salaries and Wages 979 979 979
Other Expenses 1,973 1,973 1,973
Environmental Commission Salaries and Wages 132 132 132
Other Expenses 257 257 257
City Clerk Salaries and Wages 283 283 283
Other Expenses 1,998 1,998 52 1,946 Department of Revenue and Finance Salaries and Wages 907 1,500 907 907
Other Expenses 1,233 1,333 514 819 Municipal Audit
Department of Assessment Salaries and Wages 499 499 499
Other Expenses 8,922 8,922 76 8,846
Department of Law Salaries and Wages 142 142 142
Other Expenses 38,601 76,601 76,340 261
Municipal Court Salaries and Wages 8,440 8,440 8,440
Other Expenses 6,175 8,175 3,140 5,035
Division of Engineering Other Expenses 92,911 212,911 205,449 7,462
Department of Building, Planning & Economic Development
Salaries and Wages 537 537 537
Other Expenses 2,915 2,915 555 2,360
Planning Board Salaries and Wages 165 165 165
Other Expenses 1,807 4,867 1,674 1,674
Board of Adjustment Salaries and Wages 105 105 105
Other Expenses 2,698 2,698 2,698
Municipal A.B. C. Board Salaries and Wages 333 333 333
Other Expenses 105 105 105
Insurance Other Insurance 67,603 90,603 89,640 963
Employee Group Insurance 59,748 18,177 3,925 3,925
Police Department Salaries and Wages 394 20,000 394 394
Other Expenses 2,774 1,865 4,639 4,639
Office of Emergency Management Salaries and Wages 148 148 148
Other Expenses 318 318 10 308
Fire Department Salaries and Wages 17 58,017 58,000 17
Other Expenses 3,968 7,868 7,732 136
90
EXHIBIT A-15 Page 2
CITY OF RAHWAY STATEMENT OF 2015 APPROPRIATION RESERVES
Balance Cancelled Balance December 31, Encumbrances After Balance
2015 Payable Modification Exoended Lapsed Department of Public Works
Salaries and Wages $ 204 $ 1,204 $ 1,000 $ 204 Other Expenses 191,739 191,739 19,697 172,042
Solid Waste and Recycling Salaries and Wages 774 $ 82,000 774 774 Other Expenses 192,358 167,358 91,022 76,336
Department of Health and Weltluc Salaries and Wages 5 3,205 3,200 5 Other Expenses 5,273 2,554 7,827 7,827
Community Services - Senior Services Salaries and Wages 615 615 615 Other Expenses 277 5,436 713 713
Recreation Department Salaries and Wages 802 14,000 802 802 Other Expenses 14,134 14,134 7,834 6,300
Revenue Administration Salaries and Wages 1,274 1,274 1,274 Other Expenses 5,714 5,714 758 4,956
Uniform Construction Code Enforcement Salaries and Wages 74 5,374 5,300 74 Other Expenses 3,695 9,000 3,695 3,695
Unclassified Electricity 43,323 43,323 17,998 25,325 Heating Fuels 16,597 16,597 25 16,572 Telephone 18,301 18,301 5,797 12,504 Street Lighting 50,263 50,263 47,004 3,259
Statutory Expenditures Contribution to: Social Security System (O.A.S.I.) 5,277 5,277 5,277 Pension Adjustment Fund 41 41 41 DCRP 1,914 1,914 1,914
Police Dispatch 9-1-1 System Salaries and Wages 16,787 787 787 Other Expenses 4,260 496 4,756 4,756
Total $ 905,229 $ 167,895 $ 1,073,124 $ 668,373 $ 404,751
Cash Disbursements $ 579,650
Accounts Payable 88,723
$ 668,373
91
CITY OF RAHWAY STATEMENT OF ENCUMBRANCES PAY ABLE
Balance, December 31, 20 15
Increased by: Charged to 2016 Budget Appropriations
Charged to Appropriated Grant Reserves
Decreased by: Cash Disbursements Cancelled to Appropriation Reserves
Balance, December 31, 2016
STATEMENT OF ACCOUNTS PAYABLE
Balance, December 31, 2015
Increased by: Transferred from 20 15 Appropriation Reserves
Balance, December 31, 2016
92
$
EXHIBIT A-16
$ 731,446
787,502
53,351
840,853
1,572,299
563,551 167,895
731,446
$ 840,853
EXHIBIT A-17
$ 38,370
88,723
$ 127,093
EXHIBIT A- 18
CITY OF RAHWAY STATE ME NT OF TAX OVERPAYMENTS
Balance, December 31, 2015 $ 154,500
Increased by:
Tax Overpayments 93,496
247,996 Decreased by: Cash Disbursements 154,500
Balance, December 31, 2016 $ 93,496
EXHIBIT A-19
STATEMENT OF PREPAID TAXES
Balance, December 31, 2015 $ 285,972
Increased by: Collection of2017 Taxes 323,989
609,961
Decreased by: Applied to 2016 Taxes 285,972
Balance, December 31, 2016 $ 323,989
93
EXHIBIT A-20
CITY OF RAHWAY STATEMENT OF RESERVE FOR FEDERAL AND STATE GRANTS- UNAPPROPRIATED
Balance, Increased 2016 Balance, December 31, by Revenue December 31,
2015 Receipts Realized 2016
Multiple Housing Inspection $ 11,094 $ 10,612 11,094 $ 10,612 Police Body Annor Grant 6,624 6,355 6,624 6,355 Recycling Tonnage Grant 62,670 34,969 62,670 34,969 Alcohol Education and Rehabilitation 1,472 1,472 NJ DOT Highway Safety 87,041 87,041 Recreation Heart Grant 1,250 1,250 Thomas Grahill Trust 10,000 15,000 10,000 15,000 Clean Communities 51,064 58,394 51,064 58,394 Kids Recreation Trust 425 425 Union County Recreation Grant 54,180 54,180 Blue Acres 8,684 8,684 Municipal Alliance 4,985 4,985 Business Action Center 9,625 9,625 Drunk Driving Enforcement Fund 6,702 5,423 6,702 5,423
$ 247,967 $ 198,602 $ 247,967 $ 198,602
94
EXHIBIT A-21 CITY OF RAHWAY
STATEMENT OF APPROPRIATED RESERVES FOR GRANTS
Balance, Transferred from Balance, December 31, 2016 Budget December 31,
2015 Approoriattons Expended 2016
Multiple Housing Inspections $ 18,973 $ ll,094 $ 10,608 $ 19,459 Clean Communities 112,411 51,064 30,844 132,631
Senior Services 15,463 2,168 13,295 Drunk Driving Enforcement Fund 5,090 6,702 11,792 Body Armor Grant 6,720 6,624 3,540 9,804 Public Health Priority Grant 282 282 RWJ Foundation- Kaboom 500 150 350 Municipal Alliance Program 15,207 15,207 Recycling Tonnage Grant 55,009 62,670 25,262 92,417 Safe and Secure Communities 113,305 113,305 Emergency Management Grant 13,242 13,242 Infant Smoke Detector Program 432 432 NJ Tree Foundation 2,500 2,500 Local Law Enforcement Block Grant 17,548 17,548 Hazardous Discharge Site Remediation 208,019 10,299 197,720 ADA Taser Grant 11,240 11,240 Alcohol Education and Rehabilitation Fund 975 11,097 12,072 General Motors- DARE Programs 7,260 7,260 Merck & Co. Mini Grant 15,415 15,415 Recreation Heart Grant 2,628 1,250 3,878 Recreation History Grant 1,125 1,125 County PDA Grant 345 345 Grahill Charitable Trust 12,702 10,000 22,702 NY /NJ Snowflake Youth 5,118 5,118 Drug Free Communities 276,591 125,000 122,014 279,577 Smart Growth Program 8,000 8,000
Green the Streets 97,403 97,403 Statewide Livable Communities- Library 72,396 72,396
Local Domestic Preparedness 2,630 2,630
NJ Health Dept Grant 20 20
Union County Recreation Grant 6,899 6,899
Kids Recreation Grant 203,444 425 17,200 186,669
Pandemic Influenza Grant 44,114 44,114
Child Passenger Safety Grant 2,375 2,375
NJ DOT Highway Safety 58,686 87,041 24,503 121,224
NJ Wayfinding System 75,000 75,000
NJ 911 General Assistance Grant 301 301
NJ 911 Equipment Grant 47 47
You Drink, Your Drive, You Lose 7,091 7,091
NJ DCA Brownfields 27,271 27,271
Downtown Retail Study 2Q,OOO 20,000
Assistance to Firetlghtcrs 1,097 1,097
NJ BPU Clean Energy Program 44,839 44,839
Obey the Signs 4,000 4,000
Click It or Ticket 12,730 4,724 8,006
Byrne Justice Grant 49,638 13,453 36,185
State Forestry Services 3,000 3,000
UC Police Body Cameras 30,000 30,000
Matching Funds for Grants 22,000 22,000
$ 1,679,456 $ 404,592 $ 303,799 $ 1,780,249
Cash Disbursements $ 250,448
Encumbrances Payable 53,351
$ 303,799
95
Increased by: 2016 Levy
General Taxes
County Open Space Taxes
Decreased by: Payments
CITY OF RAHWAY STATEMENT OF COUNTY TAXES PAYABLE
$ 13,260,44 7
379,377
STATEMENT OF AMOUNT DUE COUNTY FOR ADDED TAXES
Balance, December 31, 2015
Increased by: 2016 County Added Taxes
Decreased by: Payments
Balance, December 31, 20 16
96
EXHIBIT A-22
$ 13,639,824
$ 13,639,824
EXHIBIT A-23
$ 20,759
15,113
35,872
20,759
$ 15,113
EXHIBIT A-24
CITY OF RAHWAY STATEMENT OF LOCAL DISTRICT SCHOOL TAXES PAYABLE
Balance, December 31, 2015 $ 70,860
Increased by: 2016 Levy 42,753,589
42,824,449
Decreased by: Payments 42,713,939
Balance, December 31, 2016 $ 110,510
EXHIBIT A-25
STATEMENT OF SPECIAL IMPROVEMENT DISTRICT TAXES PAYABLE
Balance, December 31, 20 15 $ 675,000
Increased by: 2016 Levy 130,000
805,000
Decreased by:
Payments 130,000
Balance, December 31, 2016 $ 675,000
EXHIBIT A-26
STATEMENT OF RESERVE FOR TAX APPEALS
Balance, December 31, 2015 $ 1,400,000
Balance, December 31, 2016 $ 1,400,000
97
EXHIBIT A-27
CITY OF RAHWAY STATEMENT OF RESERVE FOR FEMA REIMBURSEMENTS
Balance, December 31, 2015 $ 461,605
Increased by: FEMA Proceeds 199,102
660,707 Decreased by:
Realized as 20 16 Budgeted Revenue 461,605
Balance, December 31, 2016 $ 199,102
EXHIBIT A-28
STATEMENT OF RESERVE FOR HOST COMMUNITY FEES
Balance, December 31, 2015 $ 109,810
Decreased by: Realized as 2016 Budgeted Revenue $ 109,810
98
EXHIBIT B~3 CITY OF RAHWAY
TRUST FUNDS STATEMENT OF CASH AND INVESTMENTS
Animal Control Community Other Trust Self-
Fund Development Fund Insurance
Balance, December 31, 2015 $ 24,366 $ 598,095 $ 3,842,486 s 126,416
Increased by Receipts: Due State ofNew Jersey Animal Control Licenses 12,249 Community Development Receipts
Grants Receivable 686,636 Loans Receivable 16,420 Deferred Loans Receivable 191,774 Interest on Loans 47,611
Miscellaneous Deposits and Reserves 2,162,549 Current Fund Receipts Deposited in Other Trust Fund 199,084 Selfinsurance Trust Fund Receipts Deposited in Other Trust Fund 26,538 Payroll Deductions Payable 27,711,132 Accrued Salaries and Wages 13,032,467 Reserve for Flex Spending 25,244 Current Fund Budget Appropriations 46,959 Receipts from Current Fund 1,200,478 Interest Eamed 65 5,675 347
12,314 942,441 44,363,167 47}06_
36,680 1,540,536 48,205,653 173,722
Decreased by Disbursements: Reserve for:
Community Development Expenditures Reserve for Expenditures 633,815 Encumbrances Payable 36,518
Miscellaneous Deposits and Reserves 2,632,649
Unemployment Claims 9,739
Workmen's Compensation 31,037 Payroll Deductions Payable 27,720,646 Accrued Salaries & Wages 13,018,954
Other Liabilities 205,032 Reserve for Flex Spending 22,986 Due to State of New Jersey 1,180 Payments to Current Fund 12,453 Payments to General Capital Fund 255,000
13,633 925,333 43,600,267 40,776
Balance, December 31, 2016 $ 23,047 $ 615,203 s 4,605,386 $ 132,946
99
EXHIBIT B-4
CITY OF RAHWAY STATEMENT OF AMOUNT DUE TO STATE OF NEW JERSEY
ANIMAL CONTROL FUND
Balance, December 3 I, 20 15 $ 35
Increased by: License Fees Collected 1,168
1,203
Decreased by: Payments to State of New Jersey I, 180
Balance, December 31,2016 $ 23
EXHIBIT B-5
STATEMENT OF RESERVE FOR ANIMAL CONTROL EXPENDITURES
Balance, December 31, 2015
Increased by: Animal License Fees Collected
Decreased by:
Statutory Excess Due to Current Fund
Balance, December 31, 2016
Balance, December 3 1, 20 15
Increased by: Interest Earned
Statutory Excess
Decreased by:
Payments to Current Fund
Balance, December 31, 2016
STATEMENT OF DUE TO CURRENT FUND ANIMAL CONTROL FUND
100
$
$ 11,937
11,081
23,018
10,711
$ 12,307
EXHIBIT B-6
65
I 0, 711
$ 12,394
10,776
23,170
12,453
$ 10,717
EXHIBIT B-7
CITY OF RAHWAY STATEMENT OF COMMUNITY DEVELOPMENT BLOCK GRANTS RECEIVABLE
Balance, 2016 Balance, December 3 1, Grant Cash December 3 I ,
2015 Awards Receipts 2016
Program Year 2016- Year 41 $ 418,622 $ 418,622 2017- Year 42 $ 648,380 268,014 $ 380,366
$ 418,622 $ 648,380 $ 686,636 $ 380,366
101
CITY OF RAHWAY STATEMENT OF LOANS RECEIVABLE
COMMUNITY DEVELOPMENT TRUST FUND
Balance, December 3 I, 2015
Decreased by: Loan Repayments - Principal
Balance, December 3 I, 2016
STATEMENT OF DEFERRED LOANS RECEIVABLE COMMUNITY DEVELOPMENT TRUST FUND
Balance, December 3 I, 2015
Increased by: Loans Advanced
Decreased by: Loan Repayments
Balance, December 31, 2016
STATEMENT OF ENCUMBRANCES PAY ABLE COMMUNITY DEVELOPMENT TRUST FUND
Balance, December 31, 2015
Increased by: Charged to Program Expenditures
Decreased by: Payments
Balance, December 3 I, 2016
102
EXHIBIT B-8
$ 240,544
16,420
$ 224,124
EXHIBITB-9
$ 2,579,595
147,981
2,727,576
191,774
$ 2,535,802
EXHIBIT B-1 0
$ 94,936
86,097
181,033
36,518
$ 144,515
EXHIBIT B-11 CITY OF RAHWAY
STATEMENT OF RESERVE FOR COMMUNITY DEVELOPMENT EXPENDITURES
Balance, 2016 Balance, December 31, Grants December 31,
2015 ReceiQts Authorized Expenditures Transfer 2016 Union County Projects:
2015 Projects (Year 40) $ 36,692 $ 25,271 $ 11,421 2016 Projects (Year 41) 415,010 404,542 10,468 2017 Projects (Year 42) $ 648,380 413,099 $ 24,000 259,281
Program Income 13,234 $ 255,805 127,000 (24,000) 118,039
$ 464,936 $ 255,805 $ 648,380 $ 969,912 $ $ 399,209
Cash Expended $ 633,815 Encumbrances Payable 86,097
Due to General Capital Fund 250,000
$ 969,912
103
EXHIBIT B-12
CITY OF RAHWAY STATEMENT OF RESERVE FOR WORKERS' COMPENSATION CLAIMS
Balance, December 31, 2015 $ 51,429
Increased by: Current Fund Budget Appropriations $ 46,959 Interest Earned 159
47,118
98,547
Decreased by: Claims 31,037
Balance, December 31, 2016 $ 67,510
EXHIBIT B-13
STATEMENT OF RESERVE FOR UNEMPLOYMENT COMPENSATION CLAIMS
Balance, December 31, 2015 $ 90,743
Increased by: Employee Contributions Due from Other Trust Fund 26,538
117,281
Decreased by: Claims Due to State of New Jersey ll,799
Balance, December 31, 2016 $ 105,482
104
Balance, December 31, 2015
Decreased by: Interest Earnings
Balance, December 31, 2016
CITY OF RAHWAY STATEMENT OF DUE FROM CURRENT FUND
SELF INSURANCE TRUST FUND
STATEMENT OF DUE TO STATE OF NEW JERSEY SELF INSURANCE TRUST FUND
Balance, December 31, 2015
Increased by: Unemployment Claims
Decreased by: Cash Disbursements
Balance, December 3 I, 2016
105
EXHIBIT B-14
$ 17,564
188
$ 17,376
EXHIBIT B-15
$ 1,808
11,799
13,607
9,739
$ 3,868
EXHIBIT B-16
CITY OF RAHWAY STATEMENT OF MISCELLANEOUS DEPOSITS AND RESERVES
Balance, Balance, December 31, December 3 I,
2015 Increases Decreases 2016
State Fees- Building Department $ 68,400 $ 23,068 $ 18,195 $ 73,273 County Red Light Camera Program 70,180 70,180 Street Opening Deposits 129,469 32,939 9,900 152,508 State Department of Human Services 1,932 5,625 6,250 1,307 Parking Offense Adjudication Act 15,051 2,504 17,555 Police Outside Employment 340,707 738,038 655,594 423,151 Professional Review Fees 583,374 248,235 213,016 618,593 Building Department Rezoning Deposits 4,054 4,054 Fire Safety Penalties 10 3,875 3,885 Elevator Inspections 86,348 79,644 68,489 97,503
Narcotics Investigation 40,060 44,448 84,508
Recreation Deposits 40,218 144,413 180,893 3,738
Public Defender 50,586 6,089 56,675
Tax Sale Premiums 1,358,823 725,240 668,840 1,415,223
Third Party Liens 331,584 933,689 904,813 360,460
Terminal Pay 632,977 1,659 631,318
Police Confiscated Money 9,485 9,485 Miscellaneous 14,308 372 14,680 Passaic Valley River Litigation 95,000 95,000 Health Insurance Claims 500,000 500,000
$ 4,372,566 $ 2,988, I 79 $ 2,727,649 $ 4,633,096
Cash Receipts $ 2,162,549 Due from Current Fund 825,630
$ 2,988,179
Cash Disbursements $ 2,632,649 Other Liabilities 95,000
$ 2,727,649
106
CITY OF RAHWAY STATEMENT OF DUE FROM CURRENT FUND- OTHER TRUST FUND
Balance, December 31, 20 15
Increased by: Other Trust Fund Receipts Deposited in Current Fund
Decreased by:
Interest Earned Current Fund Receipts Deposited in Other Trust Fund
Receipts ti·om Cunent Fund
Balance, December 31, 2016
STATEMENT OF OTHER LIABILITIES
Balance, December 3I, 20I5
Increased by:
Charges to Miscellaneous Reserves and Deposits
Decreased by:
Cash Disbursements
Balance, December 31,2016
I07
$
5,675
199,084
1,200,478
$
$
$
EXHIBIT B-17
1,184,969
825,630
2,010,599
1,405,237
605,362
EXHIBIT B-18
336,422
95,000
431,422
205,032
226,390
CITY OF RAHWAY STATEMENT OF RESERVE FOR PAYROLL DEDUCTIONS PAY ABLE
Balance, December 31, 2015
Increased by: Payroll Deductions Received
Decreased by: Payroll Deductions Paid
Balance, December 31, 2016
STATEMENT OF ACCRUED SALARIES AND WAGES
Balance, December 31, 2015
Increased by: Accrued Salaries and Wages Earned
Decreased by: Accrued Salaries and Wages Paid
Balance, December 31, 2016
STATEMENT OF RESERVE FOR FLEX SPENDING SELF INSURANCE TRUST FUND
Balance, December 31, 20 15
Increased by: Cash Receipts
Decreased by: Cash Disbursements
Balance, December 31, 2016
108
$
$
$
$
$
$
EXHIBIT B-19
198,495
27,711,132
27,909,627
27,720,646
188,981
EXHIBIT B-20
80,373
13,032,467
13,112,840
13,018,954
93,886
EXHIBIT B-21
1,949
25,244
27,193
22,986
4,207
Balance, December 31, 2015
Balance, December 31, 2016
CITY OF RAHWAY STATEMENT OF DUE TO CURRENT FUND
COMMUNITY DEVELOPMENT TRUST FUND
STATEMENT OF DUE TO GENERAL CAPITAL FUND COMMUNITY DEVELOPMENT TRUST FUND
Balance, December 31, 2015
Increased by:
General Capital Fund Receipts Deposited in CDBG Trust Fund
Decreased by:
Payments to General Capital Fund
Balance, December 31, 2016
STATEMENT OF DUE FROM OTHER TRUST FUND SELF INSURANCE TRUST FUND
Increased by:
Employee Unemployment Contributions Deposited in Other Trust Fund
Balance, December31, 2016
109
EXHIBIT B-22
$ 65,845
$ 65,845
EXHIBIT B-23
$ 391,000
250,000
641,000
255,000
$ 386,000
EXHIBIT B-24
$ 26,538
$ 26,538
CITY OF RAHWAY STATEMENT OF GENERAL CAPITAL CASH- TREASURER
Balance, December 31, 2015
Increased by Receipts: Interest Earned Grant Proceeds Current Fund Budget Appropriation
Capital Improvement Fund Reserve for Payment of Debt
Receipts from Current Fund Receipts from CDBG Trust Fund Receipts from Water Utility Capital Fund Bond Sale Proceeds Bond Anticipation Note Proceeds
Decreased by Disbursements: Improvement Authorizations Contracts Payable Bond Anticipation Notes Payable Current Fund Expenditures Paid by General Capital Fund Redevelopment Agency Expenditures Paid by General Capital Fund Payments to Sewer Utility Capital Fund
Balance, December 31, 2016
II 0
$ 15,137 37,733
160,000 32,523
I ,434,094 255,000
1,000,000 8,627,000 1,812,570
993,072 1,500,415 8,992,208
350,000 772,449 198,566
EXHIBIT C-2
$ 5,424,763
13,374,057
18,798,820
12,806,710
$ 5,992,110
Fund Balance
CITY OF RAHWAY ANALYSIS OF GENERAL CAPITAL CASH
Capital Improvement Fund Grants Receivable Loans Receivable Due from Current Fund Due from Rahway Redevelopment Agency Due from CDBG Trust Contracts Payable Reserve for Preliminary Expenses Reserve for Payment of Debt Deferred Charge - Cancelled Grants Receivable
Ord. No.
41-97 70-97 26-00/48-0 I /20-02 38-00 14-01/51-01 4-03 21-04 22-04/43-04/43-05 26-05/14-06 31-05/40-06/21-07 10-06 21-06/05-08/33-08/3-11 5-07 36-07/17-09 38-07 4-08 9-08 16-08/24-08 25-08 4-09/35-09 9-09 I 0-09/19-09 12-09 18-09 49-09 7-10/12-11
19-10 8-11 I 0-11
Description
Underground Storage Tanks Combined Sewer Overflow Study CSO Solids and Floatables Control Acq of Property/Construction of Parking Lots 200 I Road Resurfacing Redevelopment Various 2004 Capital Improvements Streetscapc Improvements Construction of Bridge St. Bike Path Various Streetscape Improvements, Phase II 2006 Road Improvements Creation of a Park on Essex Street 2007 Road Resurfacing Downtown Street Loop Modifications Hamilton Arts 2008 Road Resurfacing Acquisition of Police and Fire Equipment Strectscape Improvements - Phase IV Acquisition of Equipment and Improvements Reconstruction and Renovation of Madden Fieldhouse Acquisition of Real Property Storm water Control Projects 2009 Road Resurfacings Completion ofRiverwalk in the Right of Ways of Essex and Hancock St. Acquisition of Vehicles and Equipment Acquisitions and Improvements Within a Duly Designated
Redevelopment Area Acquisition of Real Property- 324 Hamilton St. Basketball Court Renovations 2001 Road Resurfacing Project
Ill
EXI-l!B IT C-3 Page 1
Balance, December 31,
2016
$ 2,379,631 260,175
(240,000) (13,495)
(734,619) (811,993) (386,000)
1,296,214 8,257
91,978 (140,279)
13,460 141,085 52,861
310,826 1,113
10,677 3,175
19,239 34,404 73,472 12,498 58,399 79,129 29,398 18,068
102,837 440
2,232 83,329 69,304 13,834 17,149 16,483 65,179 38,218
515,087 99,879
6,999 114,827
EXHIBIT C-3 Page 2
CITY OF RAHWAY ANALYSIS OF GENERAL CAPITAL CASH
Balance, December 3 I ,
Ord. No. Description 2016
13-11 Various General Improvements $ 31,268 32-11 Acquisition of Equipment 6,018 39-11 Various General Improvements 97,930 14-12 Various 2012 Capital Improvements 13,067 18-12 Acquisition of Fire Pumper and Rebuild of Street Sweeper 39,146 29-12 Improvements to Elm Avenue 14,776 31-12 Resurfacing of a Portion of Hamilton Street 159,967 33-12 Improvements to Police Dept. 911 Dispatch Center 9,323 35-12/16-13/24-13 Various 2012 Capita! Improvements 11,719 9-13/38-13 Various Capital Improvements 239,565 I 0-13 Police Ballistic Equipment 9,677 37-13 DPW and Fire Equipment 56,631 44-13/12-14 2013 Road Improvements 80,853 50-13 Acquisition of Equipment 38,044 6-14 2014 Sidewalk Replacement Program 3,182 7-14 Rahway River Park Athletic Field Improvements 1,135,618 13-14 Various 2014 Capital Improvements 95,009 26-14 Contribution and/or Loan to Rahway Redevelopment Agency
for the Purpose of Acquiring Real Property 750,000 27-14 2014 Road Reconstruction and Resurfacing Program 240,751 30-14 Asbestos Remediation of City Properties 6,453 13-15 Acquisition and Installation of Police Body Cameras 15,279 14-15 2015 Road Improvements 98,484 19-15 Various 2015 Improvements I47,842 27-15 Improvements to Crosswalk- East Milton and Lenox 43,149 35-I5 2015 Basketball and Tennis Court Improvements (I 04,705) 9-16 Environmental Remediation of Various Properties 3,190 18-16 2016 Road Reconstruction and Resurfacing (736, I 06) 30-16 Various 20 16 Capital Improvements (227,490)
$ 5,992,110
112
CITY OF RAHWAY STATEMENT OF DUE FROM CURRENT FUND
Balance, December 31, 2015
Increased by: General Capital Fund Receipts Deposited in Current Fund
Premium on Bond Anticipation Note Reserve for Payment of Debt Grants Receivable
Current Fund Expenditures Paid by General Capital Fund Bond Anticipation Notes
Decreased by: Interest on Investments
Receipts from Current Fund
Balance, December 31, 2016
$
EXHIBIT C-4
$ 937,090
783,349 59,455 53,956
350,000
1,246,760
2,183,850 15,137
1,434,094
1,449,231
$ 734,619
EXHIBIT C-5
STATEMENT OF DEFERRED CHARGES TO FUTURE TAXATION- FUNDED
Balance, December 31, 2015
Increased by: Serial Bonds Issued Refunding Bonds Issued
Decreased by: Serial Bonds Refunded Current Fund Budget Appropriations:
Serial Bonds Principal Paydowns
Community Affairs Loan Principal
Green Acres Loan Principal Paydowns
Balance, December 31, 2016
$
113
$ 42,801,984
8,627,000 11,683,178
20,310,178
63,112,162
11,940,596
2,929,685
20,000
65,791
14,956,072
$ 48,156,090
EXHIBIT C-6 CITY OF RAHWAY
STATEMENT OF DEFERRED CHARGES UNFUNDED
Analxsis of Balance Balance Balance Bond Unexpended
December 31, 2016 Serial Bonds Budget Grant December 31, Anticipation Improvement Ord. No. Description 2015 Authorizations Issued APPropriation Proceeds 2016 Notes Expended Authorization
14-11 Tax Appeal Refunding- Merck $ 350,000 $ 350,000 33-12 Improvements to Police Dept. 911 Dispatch Center 247,500 s 247,500
35-l2/l6-13/24-13 Various 2012 Capital Improvements 1,304,757 1,304,757
9-13/38-13 Various Capital Improvements 1,475,945 1.475,945
10-13 Police Ballistic Equipment 38,000 38,000
22-13 Groundwater Investigation 190,400 190,400
37-13 DPW and Fire Equipment 522,500 522,500
44-13/02-14 2013 Road Improvements 691,942 691,942 50-13 Traffic Maintenance Pickup Truck 147,250 147,250
03-14/20-14 Various High School Park Improvements 489,950 489,950
06-14 2014 Sidewalk Replacement Program 142,500 142,500
07-14 Rahway River Park Athletic Field Improvements 1,238,000 1,238,000
13-14 Various 2014 Capital Improvements 571,427 571,427
26-14 Acquisitions and Imprvts. Within A Duly
Designated Redevelopments Area 750,000 750,000
27-14 Road Resurfacing Project 744,608 744,608
30-14 Asbestos Remediation 71,400 71,400
13-15 Acquisition and Installation ofPolice Body Cameras 94,430 $ 94,430 $ 94,430
14-15 2015 Road Improvements 551,595 551,595 551,595
19-15 Various 2015 Improvements 904,760 904,760 904,760
27-15 Improvements to Crosswalk -East Milton and Lenox 47,500 47,500 47,500
35-15 2015 Basketball and Tennis Court Improvements 104,760 104,760 $ 104,705 $ 55
9-16 Environmental Remediation of Various Properties $ 214,285 214,285 214,285
18-16 2016 Road Reconstruction and Resurfacing 1,190,476 $ 250,000 940,476 736,106 204,370
30-16 Various 2016 Capital Improvements 952,380 952,380 227,490 724,890
$ 10,679,224 $ 2,357,141 $ 8,626,179 $ 350,000 $ 250 000 $ 3,810,186 $ 1,812,570 $ 1,068,301 $ 929,315
Improvement Authorizations- Unfunded $ 1,237,259
Less: Unexpended Note Proceeds 13-15 s 15,279
14-15 98,484 19-15 147,842 27-15 43,149
9-16 3,190
307,944
$ 929,315
II4
Description
Underground Storage Tanks Combined Sewer Overflow Study CSO Solids & Floatables Controls
Acq. OfProperty/Constr. Park UJts 2001 Road Resurfacing Redevelopment Various 2004 Capital Improvements Streetscape Improvements Construction of Bridge St. Bike Path Various Streetscape Improvements., Phase 11
2006 Road Improvements Creation of a Park on Essex Street 2007 Road Reconstruction and Resurfacing Sewer 1&1 Downtown Street Loop Modifications Hamilton Arts 2008 Road Resurfacing Project Acquisition of Police and Fire Equipment Streetscape Improvements- Phase IV Acquisition of Equipment and Improvements Reconstruction and Renovation ofMadden Fieldhouse Acqulsition of Real Property
Storm water Control Projects 2009 Road Resurfacings Completion ofR.iverwalk in the Right of Ways
of Essex: and Hancock Streets Acqulsition of Easements Relating to The
Monroe Street Bridge Replacement Acqulsition of Vehicles & Equip. Acqulsitions and Imprvts. Within A Duly
Designated Redevelopments Area Remediation of Hamilton Laundry Site Acquisition of Real Property -324 Hamilton St. Basketball Court Renovations Streetscape Improvements 2011 Road Resurfacing Project Various General Improvements Ground Water Remediation at Caniage City Site Acquisition of Equipment Various General Improvements Various 2012 Capital Improvements Acquisition of Fire Pumper and Rebuild of Street Sweeper Improvements to Elm A venue Resurfacing of a Portion of Hamilton Street Improvements to Police Dept. 911 Dispatch Center Various 2012 Capital Improvements Various Capital Improvements Police Ballistic Equlpment DPW and Fire Equipment 2013 Road Improvements Acquisition of Equipment 2014 Sidewalk Replacement Program
Ord No
41-97 $
70-97 26-00/48-0 1120-02
38-00
14-01/51-01 4-03 21-04
22-04/43-04/43-05 26-05/14-06
31-05/40-06/21-07 10-06
21-06/05-08/33-08/3-11 5-07
0-20-09 36-07/17-09
38-07 4-08 9-08
16-08/24-08 25-08
4-09/35-09 9-09
10-09/19-09 12-09
18-09
41-09 49-09
7-10/12-11
12-IO 19-10 8-11 9-11 10-11 13-11 4-11 32-11 39-11
14-12 18-12 29-12 31-12 33-12
35-12/16-13/24-13 9-13/38-13
10-13 37-13
44-13/12~14
50-13 6-14
EXHIBIT C-7 Page I
CITI' OF RAHWAY STATEMENT OF IMPROVEMENT AUTHORIZATIONS
2016 Authorizations Balance, Capital Deferred Balance,
Decernber3l 2015 Improvement Charges- Cancelled December 31. 2016 Funded Unfunded Fund Unfunded Expended Contracts Funded Unfunded
13,460 $ 13,460 141,085 141,085 52,861 52,861
310,826 310,826
1,113 1,113 8,100 s 2,577 10,677 3,175 3,175
19,239 19,239 34,404 34,404 73,472 73,472 12,498 12,498 58,399 58,399 79,129 79,129
29,398 29,398 18,068 18,068
102,837 102,837 440 440
2,232 2,232 83,329 83,329 69,304 69,304 13,834 13,834 19,134 $ 1,985 17,149 16,483 16,483
65,179 65,179
1,198 1,198 38,218 38,218
584,672 69,585 515,087 23,467 23,467
139,276 39,397 99,879 6,999 6,999
115,160 333 114,827 31,958 690 31,268
6,018 6,018 99,632 1,702 97,930 16,480 3,413 13,067 39,146 39,146 14,776 14,776
159,967 159,967 $ 9,323 9,323
11,719 11,719 239,565 239,565
9,677 9,677 56,631 56,631 80,853 80,853 68,044 30,000 38,044
7,551 4,369 3,182
115
CITY OF RAHWAY STATEMENT OF IMPROVEMENT AUTHORIZATIONS
2016 Authorizations Balance, Capital Deferred
December31 2015 Improvement Charges-
Description Ord. No. Funded Unfunded F~d Unfimded
Rahway Rlver Park Athletic Field Improvements 7-14 $ 1,135,618
Various 2014 Capital Improvements 13-14 131,769
Contribution and/or Loan to the Rahway Redevelopment Agency for the Purpose of Acquiring Real Property 26-14 750,000
2014 Road Reconstruction and Resurfacing Program 27-14 55,568
Asbestos Remediation of City Properties 30-14 6,453
Acquisition and Installation of Police Body Cameras 13-15 16,807
2015 Road Improvements 14-15 222,699
Various 2015 Improvements 19-15 197,001
Improvements to Crosswalk- East Milton and Lenox 27-15 $ 2,100 47,500
2015 Basketball and Tennis Court Improvements 35-15 45,240 104,760 Environmental Remediation of Various Properties 9-16 $ 10,715 s 214,285
2016 Road Reconstruction and Resurfacing 18-16 59,524 1,190,476
Various 2016 Capital Improvements 30-16 47,620 952,380
$ 2~ $ 3,139,819 $ 117,859 $ 2,357,141
Cash Disbursements
Contracts Payable
116
Cancelled Expended Contracts
$ 36,760
37,357 s 222,540
1,528 124,215 49,159
6,451 149,945 221,810
1,045,630
275,110
$ 2 124,104 $ 236,836
$ 993,072
1,131,032
$ 2,124,104
$
$
Balance,
EXHIBIT C-7
Page 2
December 31, 2016 Funded Unfunded
1,135,618 95,009
750,000 240,751
6,453 $ 15,279
98,484 147,842 43,149
55 3,190
204,370
724,890
5,042,598 $ 1,237,259
Purpose
2006 General Obligation Bonds
2006 Refunding Bonds
20 II General Obligation Bonds
2012 Refunding Bonds
Date of Issue
6/15/2006
1/4/2007
4/15/20 II
5/24/2012
$
CITY OF RAHWAY STATEMENT OF GENERAL SERIAL BONDS
Original Issue
4,319,000
7,945,000
11,650,000
4,994,538
Maturities of Bonds Outstanding
December 3 1. 20 16 Date Amount
4115/2017 $ 560,000 4115/2018 640,000
4115/2018-20 700,000
12/1/2017 451,389
1211/2018 489,005
12/112019 484,825
1211/2020 509,903
12/1/2021 509,903
1211/2022 501,544
12/112023 493,185
Interest Rate
4.000 4.000 4.000
3.000
3.000
2.000
2.125
2.375
2.500
2.625
117
%
Balance, December 3 1,
2015
s 275,000
5,447,932
10,150,000
3,895,322
Increased Decreased
$ 275,000
5,447,932
7,550,000
455,569
EXHIBIT C-8 Page 1
Balance,
December 31, 2016
$ 2,600,000
3,439,753
EXHIBIT C-8 Page 2
CITY OF RAHWAY STATEMENT OF GENERAL SERIAL BONDS
Maturities of Bonds Outstanding Balance, Balance,
Date of Original December3L ?016 Interest December 31, December 31,
Pumose Issue Issue Date Amount Rate 2015 Increased Decreased 2016
2013 General Obligation Bonds 913012013 $ 7,425,000 911512017-18 $ 325,000 3.000 %
9115/2019· 345,000 3.000
911512020 355,000 3.000
911512021 365,000 3.000
911512022 375,000 3.000
911512023 385,000 3.000
911512024 395,000 3.000
911512025 405,000 3.125
911512026 420,000 3.375
9/lS/2027 430,000 3.500
9115/2028 440,000 3.750
911512029 455,000 4.000
911512030 475,000 4.000
9115/2031 490,000 4.000
911512032 515,000 4.000 $ 6,815,000 $ 315,000 $ 6,500,000
2014 Refunding Bonds 9/29/2014 1,720,000 611512017-2018 230,000 3.000 611512019 230,000 4.000
611512020-2022 250,000 4.000 6/15/2023 270,000 4.000 1,710,000 1,710,000
2015 General Obligation Bonds 8/l/2015 9,460,000 8/l/2017 350,000 3.000 8/l/2018 390,000 4.000 8/l/2019 450,000 4.000 8/l/2020 525,000 4.000
8/l/2021 625,000 4.000 81112022-2025 650,000 4.000
8/l/2026 680,000 3.000 8/l/2027 690,000 3.000
8/l/2028-2029 700,000 3.000 8/l/2030 700,000 3.125 8/l/2031 700,000 3.250 9,460,000 350,000 9,110,000
118
EXHIBIT C-8
Page 3
CITY OF RAHWAY STATEMENT OF GENERAL SERIAL BONDS
Maturities of Bonds Outstanding Balance, Balance,
Date of Original December 31, ?016 Interest December 3 I, December 3 1,
Pumose Issue Issue Date Amount Rate 2015 Increased Decreased 2016
2015 Refunding Bonds 8/28/2015 $ 4,463,056 10/1/2017 $ 516,102 4.000 % 1011/2018 506,272 4.000
1011/2019 501,357 4.000 10/112020 491,526 4.125
10/112021 486,611 4.125 1011/2022 476,780 4.200
I 0/1/2023 486,611 4.250 1011/2024 476,780 4.250 $ 4,418,819 $ 476,780 $ 3,942,039
2016 General Obligation Bonds 8/4/2016 8,627,000 8/1/2017-2020 400,000 3.000 8/1/2021 425,000 3.000
8/1/2022-2023 500,000 4.000 8/112024-2026 600,000 4.000 8/1/2027-2029 750,000 3.000
8/1/2030 755,000 3.000 8/1/2031 797,000 3.000 $ 8,627,000 8,627,000
2016 Refunding Bonds 9/15/2016 11,683,178 4/15/2017 498,111 2.000 4/15/2018 498,628 3.000 4/15/2019 489,146 3.000
4/15/2020 484,404 3.000
4115/2021 1,179,921 4.000
4115/2022 1,175,180 4.000
4/15/2023 1,175,180 4.000 4/15/2024 1,170,180 4.000
4115/2025 1,160,697 4.000
4115/2026 1,131,731 2.000 4115/2027 690,000 4.000
4115/2028 685,000 4.000
4115/2029 675,000 4.000 4115/2030 670,000 4.000 11,683,178 __ 1_1,683,178
$ 42,172,073 $ 20,310,178 $ 14,870,78] $ 47,611,970
Paid by Budget Appropriation $ 2,929,685 Refunded 11,940,596
$ 14,870,281
119
EXHIBIT C-9
CITY OF RAHWAY
STATEMENT OF GRANTS RECEIVABLE
Balance, Balance, Pledged to:
December 31, Grants Cash December 31, Improvement Reserve for 2015 Awarded Receipts 2016 Authorization Receivable
NJ Department ofTransJJortation
Ord. 27-14-2014 Road Improvements $ 36,098 $ 36,098
Or d. 14-15-2015 Road Program 53,956 53,956
Ord. 18-16-2016 Road Program $ 195,825 $ 195,825 $ 195,825
County of Union
Ord. 3-14 - HS Park Improvements 75,950 75,950 75,950
Ord. 18-16-2016 Road Program 50,000 50,000 50,000
Recreation Trust
Ord. 17-07- Madden Field Lighting 200,000 200,000 $ 200,000
Ord. 35-09- Madden Fieldhouse 100,000 100,000 100,000
Ord. 35-15 Basketball and Tennis Courts 40,000 40,000 40,000
Community Development Block Grants
Ord. 27-14-2014 Road Improvements I ,635 1,635 Ord. 18-16 - 2016 Road Program 250,000 250,000
$ 507,639 $ 495,825 $ 341,689 $ 661,775 $ 240,000 $ 421,775
Cash Receipts $ 37,733
Due from Current Fund 53,956 Due from CDBG Trust Fund 250,000
$ 341,689
120
CITY OF RAHWAY STATEMENT OF LOANS RECEIVABLE
Balance, December 3 l, 2015
Balance, December 31, 2016
Pledged to: Improvement Authorization
121
EXHIBIT C-10
NJ Environmental Infrastructure
$ 13,495
$ 13,495
$ 13,495
EXlllBITC-11
CUYOFRAHWAY STATEMENT OF BOND ANTICIPATION NOTES
Date of Balance Balance
Original Date of Date of Interest December 31, December3l,
Ord No_ Improvement Description ~ Issue Maturitv "'" 2015 Increases Decreases 2016
14-11 Tax Appeal Refunding- Merck 8/11/2011 8/6/2015 8/5/2016 2.00% $ 350,000 $ 350,000
33-12 Improvements to Police Dept. 911 Dispatch Center 8/9/2013 8/6/2015 8/5/2016 2.00% 247,500 247,500 1.50%
35-12/16-13/24-13 Various 2012 Capital Improvements 8/9/2013 8/6/2015 8/5/2016 2.00% 1,304,757 1,304,757
9-13 Various 2013 Capital Improvements 8/912013 8/6/2015 8/5/2016 2.00% 1,475,945 1,475,945
10-13 Acquisition ofPolice Ballistic Equipment 8/9/2013 8/6/2015 8/512016 2.00% 38,000 38,000
22-13 Investigation of Groundwater Contamination and Remediation 8/9/2013 8/6/2015 8/5/2016 2.00% 190,400 190,400
37-13 DPW and Fire Equipment 8/8/2014 8/6/2015 8/5/2016 2.00% 522,500 522,500
44-13/02-14 20 13 Road Improvements 8/8/2014 8/6/2015 8/5/2016 2.00% 843,100 843,100
50-13 Traffic Maintenance Pickup Truck 8/8/2014 8/6/2015 815/2016 2.00% 147,250 147,250
03-14 Various High School Park Improvements 8/8/2014 8/6/2015 815/2016 2.00% 704,000 704,000
06-14 2014 Sidewalk Replacement Program 8/8/2014 8/6/2015 8/5/2016 2.00% 142,500 142,500
07-14 Rahway River Park Athletic Field Improvements 8/8/2014 8/6/2015 8/5/2016 2.00% 1,238,000 1,238,000
13-14 Various 2014 Capital Improvements 8/8/2014 8/6/2015 8/512016 2.00% 571,427 571,427
26-14 Acquisitions and Imprvts. Within A Duly Designated Redevelopments Area 8/6/2015 8/6/2015 8/5/2016 2.00% 750,000 750,000
27-14 Road Resurfacing Project 8/6/2015 8/6/2015 8/5/2016 2.00% 744,608 744,608
30-14 Asbestos Remediation 8/612015 8/6/2015 8/5/2016 2.00% 71,400 71,400
13-15 Acquisition and Installation ofPolice Body Cameras 8/4/2016 8/4/2016 8/3(2017 1.50% $ 94,430 $ 94,430
14-15 2015 Road Improvements 8/4/2016 8/4/2016 8/3/2017 1.50% 551,595 551,595
19-15 Various 2015Improvements 8/4/2016 8/4f2016 8/3/2017 1.50% 904,760 904,760
27-15 Improvements to Crosswalk- East Milton and Lenox 8/4/2016 8/4/2016 8/3/2017 1.50% 47,500 47,500
9-16 Environmental Remediation ofVarious Properties 8/4/2016 8/4/2016 8/3/2017 1.50% 214,285 214,285
____ 9,341,387 $ 1,812,570 $ 9.341,387 L_h812,570
New Issues- Cash Receipts $ 1,262,570 Due from Current Fund 550,000 Paid with Bond Sale Proceeds $ 8,627,000 Paid with Excess Proceeds 364,387 Paid by Budget Appropriation 350,000
$ 1.812.570 $ 9,341,387
122
EXHIBIT C-!2
CITY OF RAHWAY STATEMENT OF GREEN ACRES LOAN PAY ABLE
Ord. Or d. Ord. Total 22-95 8-97 9-97
Balance, December 3!, 2015 $ 402,411 $ 8,407 $ 102,305 $ 291,699
Decreased by: Principal Paid by Budget Appropriation 65,791 8,407 33,425 23,959
Balance, December 3!, 2016 $ 336,620 $ $ 68,880 $ 267,740
EXHIBIT C-13
STATEMENT OF DEPARTMENT OF COMMUNITY AFFAIRS LOAN PAYABLE
Balance, December 31, 2015 $ 40,000
Decreased by:
Paid by Budget Appropriation 20,000
Balance, December 31, 20 !6 $ 20,000
EXHIBIT C-!4
STATEMENT OF NEW JERSEY REDEVELOPMENT AUTHORITY LOAN PAYABLE
Balance, December 31,2015 $ 187,500
Balance, December 31, 20 16 $ !87,500
EXHIBIT C-15
STATEMENT OF CAPITAL IMPROVEMENT FUND
Balance, December 3!, 20!5 $ 2!8,034
Increased by: Current Fund Budget Appropriation !60,000
378,034
Decreased by: Appropriated to Finance Improvement Authorizations 1!7,859
Balance, December 3!, 2016 $ 260,!75
!23
CITY OF RAHWAY STATEMENT OF DUE FROM RAHWAY REDEVELOPMENT AGENCY
Balance, December 31, 2015
Increased by:
Redevelopment Agency Expenditures Paid by General Capital Fund
Balance, December 31, 2016
STATEMENT OF CONTRACTS PAYABLE
Balance, December 31, 2015
Increased by: Charged to Improvement Authorizations
Decreased by:
Cash Disbursements Cancellations
Balance, December 31, 2016
$ 1,500,415
236,836
STATEMENT OF RESERVE FOR PRELIMINARY EXPENSES
Balance, December 31, 2015
Balance, December 31,2016
124
EXHIBIT C-16
$ 39,544
772,449
$ 811,993
EXHIBIT C-1 7
$ 1,902,433
l,l31,032
3,033,465
1,737,251
$ 1,296,214
EXHIBIT C-18
$ 8,257
$ 8,257
CITY OF RAHWAY STATEMENT OF RESERVE FOR PAYMENT OF DEBT
Increased by: Grant Proceeds on Funded Ordinances General Capital Fund Receipts Deposited in Current Fund
Balance, December 31,2016
$ 32,523 59,455
STATEMENT OF DEFERRED CHARGES- CANCELLED GRANTS RECEIVABLE
Balance, December 31, 2015
Balance, December 31, 2016
125
EXHIBIT C-19
$ 91,978
$ 91,978
EXHIBIT C-20
$ 140,279
$ 140,279
EXHIBIT C-21
CITY OF RAHWAY
STATEMENT OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Balance, Balance,
Or d. December 31, 2016 Notes Issued Grant December 31,
No. Improvement Description 2015 Authorizations for Cash Proceeds 2016
13-15 Acquisition and Installation of Police Body Cameras $ 94,430 $ 94,430
14-15 2015 Road Improvements 551,595 551,595
19-I5 Various 2015 Improvements 904,760 904,760
27-15 Improvements to Crosswalk - East Milton and Lenox 47,500 47,500
35-15 2015 Basketball :3nd Tennis Court Improvements 104,760 $ 104,760
9-16 Environmental Remediation of Various Properties $ 214,285 214,285
18-16 2016 Road Reconstruction and Resurfacing 1,190,476 $ 250,000 940,476
30-16 Various 2016 Capital Improvements 952,380 952,380
$ 1,703,045 $ 2,357,141 $ 1,812,570 $ 250,000 $ 1,997,616
126
CITY OF RAHWAY WATER UTILITY CASH
STATEMENT OF CASH- COLLECTOR/TREASURER
Balance, December 31,2015
Increased by Receipts: Consumer Accounts Receivable Water Connection Fees Interest on Investments Capital Improvement Fund Bond Anticipation Notes Premium on Bond Anticipation Notes Receipts from Current Fund Receipts ti·mn Water Utility Capital Fund Receipts from Sewer Utility Operating Fund
Decreased by Disbursements: 2016 Budget Appropriations 2015 Appropriation Reserves Encumbrances Payable Contracts Payable Improvement Authorizations Interest on Bonds and Notes Payments to Current Fund Payments to General Capital Fund Water Utility Capital Fund Expenditures
Paid by Water Utility Operating Fund Payments to Water Utility Operating Fund
Balance, December 31, 2016
Analysis of Balance
Cash Cash with Fiscal Agents
Operating
$ 6,368,360 118,600
4,381
450,939 2,109,910
4,138,267 34,737 45,263
279,547 2,699,470
580,673
127
$ 443,536
9,052,190
9,495,726
7,777,957
$ 1,717,769
$ 1,717,769
$ 1,717,769
$
EXHIBIT D-5
Capital
2,662 50,000
146,469 55,071
320,418
719,670 2,760,327
1,000,000
450,939
$ 14,426,331
574,620
15,000,951
4,930,936
$ 10,070,015
$ (22,849) 10,092,864
$ 10,070,015
Fund Balance
CITY OF RAHWAY WATER UTILITY CAPITAL FUND
ANALYSIS OF CASH
Capital Improvement Fund Due to Current Fund Due to Water Utility Operating Fund Contracts Payable
Improvement Authorizations
Ord. No.
30-12 28-14 2-15/14-16
10-15
Replacement of Hamilton St. Water Main Various 2014 Water Utility Capital Improvements Improvements to Water Treatment Plant and
Construction of New Interconnection Pipeline Various 2015 Water Utility Improvements
128
EXHIBIT D-6
Balance, December 31,
2016
$ 345,016 106,472 320,418 902,261
8,098,924
190,893 142,086
(739,526) 703,471
$ 10,070,015
Balance, December 31, 2015
Balance, December 31, 2016
Account
Filtration Plant Improvements Wells and Distribution System General Equipment
CITY OF RAHWAY STATEMENT OF CHANGE FUND
WATER UTILITY OPERATING FUND
STATEMENT OF FIXED CAPITAL WATER UTILITY CAPITAL FUND
Increased by: Transferred from
Balance, Fixed Capital December 31 Authorized and
2015 Uncompleted
$ 18,091,708 8,786,803
573,836 Various Water System Improvements 5,571,112 Water Treatment Plant Upgrade $ 2,700,000 Land 25,000
$ 33,048,459 $ 2,700,000
129
EXHIBITD-7
$ 200
$ 200
EXHIBIT D-8
Balance, December 31
2016
$ 18,091,708 8,786,803
573,836 5,571,112 2,700,000
25,000
$ 35,748,459
CITY OF RAHWAY STATEMENT OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
WATER UTILITY CAPITAL FUND
Balance, Increased by:
Or d. Ordinance December 31 2016
No. Imorovement Description Date Amount 2015 Authorizations
30~12/23MI3 Replacement of Hamilton St. Water Main 2012 $ 1,375,000 $ 1,375,000
34M 13/39-14 Preliminary Costs - Water Treatment Plant Upgrade 2013/2014 2,700,000 2,700,000
28-14 Various 2014 Water Utility Capital Improvements 2014 300,000 300,000
2-15 Improvements to Water Treatment Plant and Construction of New Interconnection Pipeline 2015 19,785,000 19,785,000
10-15 Various 2015 Water Utility Improvements 2015 925,000 925,000
28-16 Various Improvements to Water Treatment Plant 7/811905 400,000 $ 400,000
$ 25,085,000 $ 400,000
130
EXHIBIT D-9
Decreased by: Balance,
Transferred to December 31 Fixed Capital 2016
$ 1,375,000
$ 2,700,000
300,000
19,785,000
925,000
400,000
$ 2,700,000 $ 22,785,000
Balance, December 31,2015
Increased by: Water Rents Levied
Decreased by: Collections
Balance, December 31, 2016
Emergency Authorizations
CITY OF RAHWAY STATEMENT OF CONSUMER ACCOUNTS RECEIVABLE
WATER UTILITY OPERATING FUND
STATEMENT OF DEFERRED CHARGES WATER UTILITY OPERATING FUND
Balance, December 31,
2015
$ 360,000
Increased by: Results from
2016
Overexpenditure of Appropriations 29,!54 Overexpenditure of Appropriation Reserve $ 34,105
$ 389,!54 $ 34,105
131
EXHIBIT D-10
$ 828,397
6,408,072
7,236,469
6,368,360
$ 868,109
EXHIBIT D-11
2016 Balance, Budget December 31,
Appropriation 2016
$ 360,000 29,154
$ 34,105
$ 389,154 $ 34,105
Operating Other Expenses
CITY OF RAHWAY STATEMENT OF 2015 APPROPRIATION RESERVES
WATER UTILITY OPERATING FUND
Balance December 31,
2015
$
Cancelled Encumbrances
$
$
$
Adjusted Cash Balance Disbursements
20,528 $ 54,633
20,528 $ 54,633
20,528
Cash Disbursements $ 34,737 Accounts Payable 19,896
$ 54,633
132
$
$
Balance Lapsed
EXHIBIT D-12
$
$
OverExpended
34, I 05
34,105
Balance, December 31, 2015
Increased by:
CITY OF RAHWAY STATEMENT OF ENCUMBRANCES PAYABLE
WATER UTILITY OPERATING FUND
Charged to 2016 Budget Appropriations
Decreased by:
Cash Disbursements
Cancelled to Appropriation Reserves
Balance, December 31, 2016
STATEMENT OF ACCOUNTS PAYABLE
Balance, December 3 I, 2015
Increased by: Transferred from Appropriation Reserves
Decreased by:
Cancelled to Operations
Balance, December 31, 2016
$ 45,263
20,528
STATEMENT OF DUE FROM WATER UTILITY CAPITAL FUND WATER UTILITY OPERATING FUND
Balance, December 31,2015
Increased by: Interest Earned $ 2,662 Water Utility Capital Fund Expenditure Paid by Water Utility Operating Fund 580,673
Decreased by: Cash Receipts from Water Utility Capital Fund 450,939 Budget Appropriation - Bonds and Notes Authorized but not Issued I 0,401
Balance, December 31, 20 16 133
EXHIBIT D-13
$ 65,791
32,483
98,274
65,791
$ 32,483
EXHIBIT D-14
$ 800
19,896
20,696
800
$ 19,896
EXHIBIT D-15
$ 780,266
583,335
1,363,601
461,340
$ 902,261
CITY OF RAHWAY STATEMENT OF DUE FROM/TO CURRENT FUND
WATER UTILITY OPERATING FUND
Balance, December 31, 2015 (Due to)
Increased by:
Water Utility Operating Fund Expenditures Paid by Current Fund
Decreased by:
Payments to Current Fund
Balance, December 31, 2016 (Due from)
STATEMENT OF DUE TO GENERAL CAPITAL FUND WATER UTILITY CAPITAL FUND
Balance, December 31, 2015
Decreased by: Payments to General Capital Fund
Increased by: Receipts from Current Fund
Balance, December 31, 2016
STATEMENT OF DUE TO CURRENT FUND WATER UTILITY CAPITAL FUND
134
EXHIBIT D-16
$ 928,520
1,083,225
2,011,745
2,699,470
$ 687,725
EXHIBIT D-17
$ 1,000,000
$ 1,000,000
EXHIBIT D-18
$ 320,418
$ 320,418
Ordinance Number lmorovement Description
30-12/23-13 Replacement of Hamilton St. Water Main
34-13/ 39-14 Preliminary Costs - Water Treatment Plant Upgrade
28-14 Various 2014 Water Utility Capital Improvements
2-15/14-16 Improvements to Water Treatment Plant and
Construction of New Interconnection Pipeline
10-15 Various 2015 Water Utility Improvements
28-16 Various Improvements to Water Treatment Plant
$
CITY OF RAHWAY STATEMENT OF IMPROVEMENT AUTHORIZATIONS
WATER UTILITY CAPITAL FUND
Balance, December 31 2015 2016
Amount Funded Unfunded Authorizations
1,375,000 $ 190,893
2,700,000 24,402
300,000 108,571
19,785,000 16,359,240
925,000 721,728
400,000 $ 400,000
$ $ 17,404,834 $ 400,000
Debt Authorizations $ 400,000
Cash Disbursements Due to Water Utility Operating Fund Contracts Payable
135
EXHIBIT D-19
Balance Paid or Cancelled December 31 2016 Charged Contracts Funded Unfunded
$ 190,893
$ 24,402
$ 33,515 142,086
10,802,666 5,556,574
18,257 703,471
400,000
$ 10,845,325 $ 33,515 $ $ 6,993,024
$ 2,760,327 580,673
7,504,325
$ 10,264,652
Balance, December 3 I, 2015
Increased by:
CITY OF RAHWAY STATEMENT OF CONTRACTS PAYABLE
WATER UTILITY CAPITAL FUND
Charges to Improvement Authorizations
Decreased by:
Cash Disbursements
Cancellations
Balance, December 31, 2016
$ 719,670
33,515
STATEMENT OF RESERVE FOR AMORTIZATION WATER UTILITY CAPITAL FUND
Balance, December 31, 2015
Increased by: Serial Bonds Paid by Operating Budget
Bond Anticipation Note Principal Paid by Operating Budget
Balance, December 31, 20 16
$ 800,000
203,222
STATEMENT OF RESERVE FOR DEFERRED AMORTIZATION WATER UTILITY CAPITAL FUND
Balance, December 31, 2015 .
Increased by:
Budget Appropriation -Deferred Charges Unti.mded
Balance, December 31, 2016
136
EXHIBIT D-20
$ 1,347,784
7,504,325
8,852,109
753,185
$ 8,098,924
EXHIBIT D-21
$ 24,860,710
1,003,222
$ 25,863,932
EXHIBIT D-22
$ 293,528
I 0,401
$ 303,929
Purpose Date of Issue
Original Issue
Improvement of Water System 6/15/2006 $ 2,775,000
Refunding Water Utility 12/1/2009 5,190,000
2014 Refunding Bonds 9/29/2014 1,670,000
CITY OF RAHWAY STATEMENT OF WATER SERIAL BONDS
WATER UTILITY CAPITAL FUND
Maturities of Bonds Outstanding
December 31, 2016 Date Amount
12/1/2017 $ 655,000 12/1/2018 680,000
6/15/2017-2018 225,000 6/15/2019 225,000
6/15/2020-2021 245,000 6/15/2022 240,000 6/15/2023 265,000
Interest Rate
3.00% 3.50%
3.00% 4.00% 4.00% 4.00% 4.00%
Balance, December 31
2015
$ 165,000
1,970,000
1,670,000
$ 3,805,000
Paid by Budget Appropriation
137
Increased
$
EXHIBIT D-23
Balance, December 31
Decreased 2016
$ 165,000
635,000 $ I ,335,000
1,670,000
$ 800,000 $ 3,005,000
$ 800,000
EXHIBIT D-24
CITY OF RAHWAY WATER UTILITY CAPITAL FUND
STATEMENT OF BOND ANTICIPATION NOTES
Date of Balance Balance
Original Date of Date of Interest December 31 December 31 Ord. No. 1m movement Description Issue Issue Maturitv Rate 2015 Increased Decreased 2016
24-06 Various Water Capital Imprvts. 4/30/2008 6/29/2016 6/29/2017 2.00% s 886,180 886,180
9/29/2015 6/29/2016 2.00% $ 916,253 $ 916,253
34-07 Various Water System Improvements 4/30/2008 6/29/2016 6/29/2017 2.00% 1,108,031 1,108,031
9/29/2015 6/29/2016 2.00% 1,123,221 1,123,221
36-09/13-10 Various Water System Imprvts. 8/11/2011 8/4/2016 8/3/2017 1.50% 1,370,886 1,370,886
8/6/2015 8/5/2016 2.00% 1,388,924 1,388,924
42-09 Water System lmprvts. Relating
to The Monroe Street Bridge 8/11/2011 8/4/2016 8/3/2017 1.50% 144,303 144,303 8/6/2015 8/5/2016 2.00% 146,202 146,202
15-12 2012 Various Water Improvements 8/10/2012 8/4/2016 8/3/2017 1.50% 705,868 705,868
8/6/2015 8/5/2016 2.00% 757,694 757,694
30-12/23-13 Replacement of Water Main on Hamilton St. 8/9/2013 8/4/2016 8/3/2017 1.50% 1,275,436 1,275,436
8/6/2015 8/5/2016 2.00% 1,309,000 1,309,000
34-13 Water Treatment Plant Improvements 9/30/2013 6/29/2016 6/29/2017 2.00% 1,280,242 1,280,242
9/29/2015 6/29/2016 2.00% 1,332,874 1,332,874
28-14 Water System Improvements 9/29/2014 6/29/2016 6/29/2017 2.00% 285,700 285,700
9/29/2015 6/29/2016 2.00% 285,700 285,700
10-15 Various 2015 Water Utility Improvements 9/29/2015 6/29/2016 6/29/2017 2.00% 880,952 880,952 9/29/2015 6/29/2016 2.00% 880,952 880,952
39-14 Water System Plant Improvements 6/30/2015 1,238,000 1,238,000 6/30/2015 6/29/2016 0.0775% 1,238,000 1,238,000
2-15 Improvements to Water Treatment Plant and
Construction of New Interconnection Pipeline 6/30/2015 6/29/2016 6/29/2017 0.0000% 13,488,900 13,488,900 6/30/2015 6/29/2016 0.0775% 13,342,431 13,34?,431
$ 22,721,251 $ 22,664,498 $ 22,721,251 s 22,664,498
Renewals $ 22,518,029 $ 22,518,029
Issued for Cash 146,469 Paid by Budget Appropriation 203,222
$ 22,664,498 s 22,721,251
138
Balance, December 3 1, 2015
Increased by:
CITY OF RAHWAY STATEMENT OF CAPITAL IMPROVEMENT FUND
WATER UTILITY CAPITAL FUND
Water Utility Operating Budget Appropriation
Decreased by:
Appropriated to Finance Improvement Authorizations
Balance, December 31, 2016
EXHIBIT D-25
$ 56,472
50,000
106,472
$ 106,472
EXHIBIT D-26
STATEMENT OF ACCRUED INTEREST PAY ABLE ON BONDS AND NOTES WATER UTILITY OPERATING FUND
Balance, December 31, 2015
Increased by: Budget Appropriations
I nteres! on Bonds
Decreased by: Interest Paid
Balance, December 31, 2016
$
$
139
65,362
285,000
350,362
279,547
70,815
Ordinance Number
45-97
3-04
24-06
34-13
2-15/4-16
28-16
CITY OF RAHWAY WATER UTILITY CAPITAL FUND
STATEMENT OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Balance, December 31, 2016 Budget
Improvement Description 2015 Authorizations Apnronriation
Water Main Replacement $ 783 $ 783
Rehabilitation and Reconstruction of Water System Interconnections 8,572 8,572
Various Water Capital Improvements 620 620
Upgrade to Water Treatment Plant 426 426
Improvements to Water Treatment Plant and Construction of New Interconnection Pipeline 6,442,569
Various Improvements to Water Treatment Plant $ 400,000
$ 6,452,970 $ 400,000 $ 10,401
140
EXHIBIT D-27
Balance, Notes Issued December 31,
for Cash 2016
$ 146,469 $ 6,296,100
400,000
$ 146,469 $ 6,696,100
EXHIBIT E-5
CITY OF RAHWAY SEWER UTILITY CASH
STATE ME NT OF CASH - COLLECTORrfREASURER
Operating Capital
Balance, December 31, 2015 $ 1,671,637 $ 910,924
Increased by Receipts: Consumer Accounts Receivable $ 4,488,364 Industrial Sewer Flow Charges 302,070 Miscellaneous Revenue 63,445 Interest on Investments 1,835 $ 1,296
Receipts from Current Fund 351,434 Receipts from General Capital Fund 198,566 Receipts from Sewer Utility Capital Fund 800,507 Capital Improvement Fund 21,200
5,656,221 572,496
7,327,858 1,483,420
Decreased by Disbursements: 2016 Budget Appropriations 4,766,868 2015 Appropriation Reserves 14,863 Encumbrances Payable 25,712 Improvement Authorizations 458,708 Contracts Payable 128,581 Accrued Interest on Bonds and Loans 79,344 Payments to Current Fund 56,440 Payments to Water Utility Operating Fund 2,109,910 Payments to Sewer Utility Operating Fund 800,507
7,053,137 1,387,796
Balance, December 31, 2016 $ 274,721 $ 95,624
141
Fund Balance Capital Improvement Fund Contracts Payable Reserve for Payment of Debt
CITY OF RAHWAY SEWER UTILITY CAPITAL FUND
ANALYSIS OF CASH
Due from Sewer Utility Operating Fund
Improvement Authorizations
Ord. No.
11-09/21-09 Wastewater Improvements 34-12 Improvements to Donald A venue Storm Sewer
36-13/25-14 Emergency Sinkhole Repair 45-13 Flood Control Mitigation 29-14 Kline Place Storm Sewer 6-16 Inflow and Infiltration Project (Phase III) 19-16 Improvements to Witherspoon St Outfall and Monroe St Sewer Lines
142
EXHIBITE-6
Balance, December 31,
2016
$ 49,060 374,500
52,398 111,892
(798,916)
185,645 54,240 43,510
231,911 185,427
(389,692) (4,351)
$ 95,624
EXHIBIT E-7
CITY OF RAHWAY STATEMENT OF CONSUMER ACCOUNTS RECEIVABLE
SEWER UTILITY OPERATING FUND
Balance, December 31, 2015
Increased by: Sewer Rents Levied
Decreased by: Cash Receipts
Balance, December 31, 2016
STATEMENT OF DEFERRED CHARGES SEWER UTILITY OPERATING FUND
Balance, December 3 1,
2015 Increases
Overexpenditure of Appropriations $ 20,745 ~$~~~
143
$
$ 349,806
4,506,511
4,856,317
4,488,364
$ 367,953
EXHIBIT E-8
Balance, December 31,
Decreases 2016
20,745 ~$~~~
Account
CITY OF RAHWAY STATEMENT OF FIXED CAPITAL SEWER UTILITY CAPITAL FUND
Increased by: Transfers from
Balance, Fixed Capital December 31, Authorized and
2015 Uncompleted
Various Sewer System Improvements $ 3,655,428 $
$ 3,655,428 $
144
EXHIBIT E-9
Balance, December 31,
2016
$ 3,655,428
$ 3,655,428
Ord. No.
11-09/21-09
34-12
36-13/25-14
45-13
29-14
6-16
19-16
CITY OF RAHWAY STATEMENT OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED
SEWER UTILITY CAPITAL FUND
Ordinance Improvement Description Date Amount
Wastewater Improvements 2009 $ 550,000
Improvements to Donald Avenue Stann Sewer 2012 140,000
Emergency Sinkhole Repair 2013 300,000
Flood Control Mitigation 2013 300,000
Improvement of the Stonn Sewer on Kline Place 2014 350,000
Inflow and Infiltration Project (Phase III) 2016 425,000
Improvements_ to Witherspoon St Outfall and Monroe St Sewer Lines 2016 325,000
145
$
$
Balance, December 31,
2015
550,000
140,000
500,000
300,000
350,000
1,840,000
Increased by: 2016
Authorizations
$ 425,000
325,000
$ 750,000 $
Decreased bv: Transfers to
Fixed Capital
$
$
EXHIBIT E-10
Balance, December 31,
2016
550,000
140,000
500,000
300,000
350,000
425,000
325,000
2,590,000
CITY OF RAHWAY STATEMENT OF DUE FROMffO CURRENT FUND
SEWER UTILITY OPERATING FUND
Balance, December 31, 2015 (Due from)
Increased by: Payments to Current Fund
Decreased by: Sewer Utility Operating Fund Expenditures Paid by Current Fund
Balance, December 31, 2016 (Due to)
Balance, December 31, 20 15
Decreased by:
Receipts from Current Fund
STATEMENT OF DUE FROM CURRENT FUND SEWER UTILITY CAPITAL FUND
146
EXHIBIT E-ll
$ 8,172
56,440
64,612
207,601
$ 142,989
EXHIBIT E-12
$ 351,434
$ 351,434
CITY OF RAHWAY STATEMENT OF DUE FROM WATER UTILITY OPERATING FUND
SEWER UTILITY OPERATING FUND
Balance, December 31, 2015
Increased by: Payments to Water Utility Operating Fund
Balance, December 31, 2016
STATEMENT OF DUE FROM/TO SEWER UTILITY OPERATING FUND SEWER UTILITY CAPITAL FUND
Balance, December 31, 2015 (Due to)
Increased by:
Interest Earned
Decreased by:
Payments to Sewer Utility Operating Fund
Balance, December 31, 2016 (Due from)
STATEMENT OF DUE FROM GENERAL CAPITAL FUND SEWER UTILITY CAPITAL FUND
Balance, December 31, 2015
Decrease by:
Receipts from General Capital Fund
147
EXHIBIT E-13
$ 385,852
2,109,910
$ 2,495,762
EXHIBIT E-14
$ 295
1,296
1,591
800,507
$ 798,916
EXHIBIT E-15
$ 198,566
$ 198,566
CITY OF RAHWAY STATEMENT OF 2015 APPROPRIATION RESERVES
SEWER UTILITY OPERATING FUND
Balance Balance Paid December 3 I , After or
2015 Transfers Charged
Operating Salaries and Wages $ 717 $ 17 Other Expenses 16,628 17,328 $ Sewer Treatment Expense Rahway Valley Sewer Authority 1 Sewer Permit Fees 847 847
Statutory Expenditures Social Security 22 22
$ 18,215 $ 18,215 $
STATEMENT OF ENCUMBRANCES PAYABLE SEWER UTILITY OPERATING FUND
Balance, December 31, 2015
Increased by: Charged to Budget Appropriations
Decreased by: Cash Disbursements
Balance, December 31, 20 16
148
14,863
14,863
EXHIBIT E-16
Balance Lapsed
$ 17 2,465
847
22
$ 3,352
EXHIBIT E-1 7
$ 25,712
3,021
28,733
25,712
$ 3,021
EXIDBITE-18
CITY OF RAHWAY STATEMENT OF GENERAL SERIAL BONDS
SEWER UTILITY CAPITAL FUND
Maturities of Bonds Outstanding Balance, Balance,
Date of Original December 31. 2016 Interest December 31, December 31, Pumose Issue Issue Date Amount Rate 2015 Increased Decreased 2016
2006 Refunding Bonds 1/4/2007 $ 410,828 $ 297,068 $ 297,068
2012 Refi.mding Bonds 5124/2012 980,462 12/1/2017 $ 88,611 3.000 %
121112018 95,995 3.000
121112019 95,175 2.000
12/1/2020 100,097 2.125
12/1/2021 100,097 2.375
121112022 98,456 2.500
121112023 96,815 2.625 764,678 89,431 $ 675,247
2015 Refunding Bonds 812812015 76,944 10/1/2017 8,898 3.00 101112018 8,728 4.00 10/1/2019 8,643 4.00 10/I/2020 8,474 4.00 10/1/2021 8,389 4.00 10/1/2022 8,220 4.00 101112023 8,389 4.00 101112024 8,220 4.00 76,181 8,220 67,961
2016 Refunding Bonds 9115/2016 $ 251,822 411512017 26,889 2.00 4/15/2018 26,372 3.00 4/15/2019 25,854 3.00 411512020 25,596 3.00 4/15/2021 25,079 4.00 4/1512022 24,820 4.00 4/15/2023 24,820 4.00 4/15/2024 24,820 4.00 411512025 24,303 4.000 4/15/2026 23,269 2.000 $ 251,822 $ $ 251,822
$ 1,137,927 $ 251,822 $ 394,719 $ 995,030
Paid by Budget Appropriation $ 125,315
Refunded 269.1.404
$ 394,719
149
CITY OF RAHWAY STATEMENT OF ENVIRONMENTAL INFRASTRUCTURE LOAN PAYABLE
SEWER UTILITY CAPITAL FUND
Balance, December 31, 2015
Decreased by:
Principal Paid by Budget Appropriation
Balance, December 31, 2016
ISO
EXHIBIT E-19
$ 859,252
113,785
$ 745,467
EXHIBIT E-20
CITY OF RAHWAY SEWER UTILITY CAPITAL FUND
STATEMENT OF BOND ANTICIPATION NOTES
Date of Balance Balance
Original Date of Date of Interest December 31 December 31
Ord. No. Imorovement Description Issue Issue Maturitv Rate 2015 Increased Decreased 2016
11-09 /21-09 Wastewater Improvements 811112011 8/4/2016 8/3/2017 1.50% $ 529,074 $ 529,074 8/6/2015 8/5/2016 2.00% $ 536,037 $ 536,037
41-11 Sewer System Improvements 8/10/2012 8/4/2016 8/3/2017 1.50% 36,912 36,912
8/6/2015 8/5/2016 2.00% 37,456 37,456
34-12 Improvements to Donald A venue Storm Sewer 8/9/2013 8/4/2016 8/3/2017 1.50% 129,882 129,882
8/6/2015 8/5/2016 2.00% 133,300 133,300
45-13 Flood Control Mitigation 8/8/2014 8/4/2016 8/3/2017 1.50% 300,000 300,000 8/6/2015 8/5/2016 2.00% 300,000 300,000
36-13/25-14 Emergency Sinkhole Repair 8/6/2015 8/4/2016 8/3/2017 1.50% 500,000 500,000 8/6/2015 8/5/2016 2.00% 500,000 500,000
29-14 Storm Sewer- Kline Place 8/6/2015 8/4/2016 8/3/2017 1.50% 350,000 350,000 8/6/2015 8/5/2016 2.00% 350,000 350,000
$ 1,856,793 $ 1,845,868 $ 1,856,793 $ 1,845,868
Renewals $ 1,845,868 $ 1,845,868 Paid by Budget Appropriation 10,925
$ 1,845,868 $ 1,856,793
151
Ordinance
CITY OF RAHWAY STATEMENT OF IMPROVEMENT AUTHORIZATIONS
SEWER UTILITY CAPITAL FUND
Balance, December31.2015 2016
Number Improvement Description Amount Funded Unfunded Authorizations Expended
11-09/21-09 Wastewater Improvements 34-12 Improvements to Donald A venue Storm Sewer
36-13/ 25-14 Emergency Sinkhole Repair 45-13 Flood Control Mitigation Project
29-14 6-16
19-16
Improvement of the Storm Sewer on Kline Place Inflow and Infiltration Project (Phase ill)
Improvements to Witherspoon St Outfall and Monroe St Sewer Lines
$ 550,000 140,000 200,000
350,000 425,000
325,000
152
$ 185,645 54,240 76,172
185,055
254,492 $
$ 755,604 $
Cash Disbursements Contracts Payable
$
425,000
325,000
750,000 $
$
32,662 $
69,065 389,692
4,351
495,770 $
458,708 37,062
$ 495,770
Cancelled Contracts
46,856
EXlllBIT E-21
Balance, December 31 2016
Funded Unfunded
$ 185,645 54,240 43,510
231,911
185,427 35,308
320,649
46,856 ;:.$ ___ _ $ 1,056,690
Balance, December 31, 20 15
Increased by:
CITY OF RAHWAY STATEMENT OF CONTRACTS PAYABLE
SEWER UTILITY CAPITAL FUND
Charges to Improvement Authorizations
Decreased by: Cash Disbursements Cancellations
Balance, December 3 I, 2016
$ 128,58 I 46,856
STATEMENT OF CAPITAL IMPROVEMENT FUND SEWER UTILITY CAPITAL FUND
Balance, December 3 I, 20 !5
Increased by: Budget Appropriation
Balance, December 31, 2016
STATEMENT OF ACCRUED INTEREST ON BONDS AND LOANS SEWER UTILITY OPERATING FUND
Balance, December 3 l, 2015
Increased by: Budget Appropriations
Interest on Bonds and Loans
Decreased by: Interest Paid
Balance, December 31, 2016
!53
EXHIBIT E-22
$ !90,773
37,062
227,835
I 75,437
$ 52,398
EXHIBIT E-23
$ 353,300
2!,200
$ 374,500
EXHIBIT E-24
$ 26,578
77,713
!04,29!
79,344
$ 24,947
CITY OF RAHWAY STATEMENT OF RESERVE FOR AMORTIZATION
SEWER UTILITY CAPITAL FUND
Balance, December 31, 2015
Increased by: Serial Bonds Refunded Principal Paid by Budget Appropriation
Serial Bonds Loans Bond Anticipation Notes
Decreased by:
Refunding Bonds Issued
Balance, December 31, 2016
$ 269,404
125,315 113,785
10,925
STATEMENT OF RESERVE FOR DEFERRED AMORTIZATION
Balance, December 31,2015
Balance, December 31,2016
STATEMENT OF RESERVE FOR PAYMENT OF DEBT SEWER UTILITY CAPITAL FUND
Balance, December 31, 2015
Balance, December 31, 2016
154
EXHIBIT E-25
$ 1,634,756
519,429
2, 154,185
251,822
$ 1,902,363
EXHIBIT E-26
$ 6,700
$ 6,700
EXHIBIT E-27
$ 111,892
$ 111,892
CITY OF RAHWAY SEWER UTILITY CAPITAL FUND
STATEMENT OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED
Ordinance Number Imorovement Description
6-16 Inflow and Infiltration Project (Phase III)
Balance, December 31,
2015
19-16 Improvements to Witherspoon St Outfall and Monroe St 8< _______ _
$
!55
2016 Authorizations
$ 425,000
325,000
$ 750,000 $
EXHIBIT E-28
Balance, Notes Issued December 31,
for Cash 2016
$ 425,000
325,000
$ 750,000
LERCH, VINCI & HIGGINS,LLP
DIETER P. LERCH. CPA. RMA. PSA
GARY J. VINCI, CPA. RMA, PSA
GARY W. HIGGINS. CPA, RMA, PSA
JEr l'REY C. BLISS, CPA, RMA, PSA
PAUl. J. LERCII, CPA, RMA, PSA
DONNA L. JAPHET. CPA, PSA
JULIUS B. CONSONT. CPA. PSA
ANDREW D. PARENTE, CPA, RMA, PSA
CERTIFIED PUBLIC ACCOUNTANTS REGISTERED MUNICIPAL ACCOUNTANTS
ELIZABETH A. SHICK, CPA, RMA, PSA
ROBERT W. HAAG. CPA. PSA
DEBORAHK.LERCH, CPA, PSA
RALPH M. PICONE, CPA, RMA, PSA
DEBRA GOLLE, CPA
CINDY JANACEK, CPA, RMA
MARK SACO, CPA
SHERYL M. NICOLOSI, CPA, PSA
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
Honorable Mayor and Members of the City Council
City of Rahway Rahway, New Jersey
INDEPENDENT AUDITOR'S REPORT
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, Department of Community Affairs, State of New Jersey, the financial statements -regulatory basis of the City of Rahway, as of and for the year ended December 31, 2016, and the related notes to the financial statements, and have issued our report thereon dated June 20, 201 7. Our report on the financial statements - regulatory basis indicated 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 ofNew Jersey for municipal government entities as described in Note I.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Rahway's internal control over financial reporting 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 City of Rahway's internal control. Accordingly, we do not express an opinion on the effectiveness ofthe City of Rahway' s internal control.
17-17 ROUTE 208 • FAIR LAWN, NJ 074 10 • TELEPHONE (201) 791-7100 • FACSIMILE (201) 791-3035
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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 City'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.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identity all deficiencies in intemal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identity 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 City of Rahway'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 an instance of noncompliance or other matter that is required to be reported under Government Auditing Standards and audit requirements as prescribed by the Division of Local Govemment Services, Department of Community Affairs, State of New Jersey and which is described in the accompanying schedule of findings and questioned costs as item 2016-00 I.
However, we noted certain matters that are not required to be reported under Government Auditing Standards that we reported to management of the City of Rahway in Part III 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 City of Rahway'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 City of Rahway's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Fair Lawn, New Jersey June 20, 2017
!57
r / /~4', ~·~(' ;,_; 1 Jr ~~~ ~HJGGIN , LLP
Certified Public Accountan
X' Registered Municipal A ountant RMA Number CR003
LERCH, VINCI & HIGGINS,LLP
mETER P. LERCH. CPA. RMA. PSA
GARY J. VINCI. C PA, RMA. PSA
GARY W. HIGGINS. CPA. RMA. I'SA
JEFFREY C. BLISS, CPA, RMA, PSA
PAUL J. LERCH, CPA, RMA, PSA
DONNA L. JAI'HET, CPA. PSA
JULIUS B. CON SON I. CPA, PSA
ANDREW D. PARENTE, CPA, RMA, PSA
CERTIFIED PUBLIC ACCOUNTANTS REGISTERED MUNICIPAL ACCOUNTANTS
ELIZABETH A. SHICK. CI'A. RMA, PSA
ROBERTW. HAAG, CPA. PSA
DEBORAH K. LERCH, CPA, PSA
RALPH M. PICONE. CPA, RMA, PSA
DEBRA GOLLE, CPA
CINDY JANACEK, CPA, RMA
MARK SACO, C PA
SHERYL M. NICOLOSI, CPA, PSA
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT
ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY U.S. UNIFORM GUIDANCE
Honorable Mayor and Members of the City Council
City of Rahway Rahway, New Jersey
INDEPENDENT AUDITOR'S REPORT
Report on Compliance for Each Major Federal Program
We have audited the City of Rahway's compliance with the types of compliance requirements described in the U.S. Office of Management and Budget COMB) Compliance Supplement that could have a direct and material effect on each of the City of Rahway's major federal programs for the year ended December 31 , 2016. The City of Rahway' s major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the City of Rahway's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to fmancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; audit requirements as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey; and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and U.S. Uniform Guidance, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City of Rahway' s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
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We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City of Rahway's compliance.
Opinion on Each Major Federal Program
In our opinion, the City of Rahway complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2016.
Report on Internal Control Over Compliance
Management of the City of Rahway is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City of Rahway's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with U.S. Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City of Rahway's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of perfonning their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identifY all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identifY any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of U.S. Unifonn Guidance. Accordingly, this report is not suitable for any other purpose.
159
Report on Schedule of Expenditures of Federal Awards Required by U.S. Uniform Guidance
We have audited the financial statements - regulatory basis of the City of Rahway as of and for the year ended December 31, 2016, and the related notes to the financial statements and have issued our report thereon dated June 20, 2017, which contained a modified opinion on those financial statements because they were not prepared in accordance with accounting principles generally accepted in the United States of America and also contained an unmodified opinion on those financial statements prepared in accordance with the regulatory basis of accounting. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of expenditures of federal awards as required by U.S. Uniform Guidance is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The 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 schedule of expenditures of federal awards is fairly stated in all material respects in relation to the financial statements as a whole.
Fair Lawn, New Jersey June 20, 2017
160
' :ZL t:J;l '.~'4/"/2f LERCH, VINCI & HIGGINi, LLP Certified Public Accountants
. erch Registered Muni ipal Accountant RMA Number CR00398
Schedule A
CITY OF RAHWAY SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS
YEAR ENDED DECEMBER 31, 2016
State Original Balance, Balance, Cumulative
CFDA Gum "'~' 2016 December 31, Revenue Adjustment/ December 31, Total Number Number Award Receipts 2015 ~ J;;m~nditure~ Transfer.J: ~1.Mim.J. 2016 ~enditures
U.S. Department of Housing and Urban Ikvelopment (Passed Through Union County Dept. of Community Development)
Community Development Block Grants 14.218 NIA Program Year 40 (Fiscal Year 2014-2015) Roadway Rehabilitation s 213,700 $ 36,692 $ 25,271 $ n,421 I $ 202,279
Program Year 41 (Fiscal Year 2015-2016) Senior Citizen Social Services Program 13,880 $ 13,880 12,880 12,880 13,880
Home Improvement Program 285,000 285,000 259,663 259,663 285,000
Policy & Planning 100,000 72,742 95,467 95,126 341 1
99,659
Code Enforcement Program 47,000 47,000 47,000 36,872 10,128 36,872
Program Year 42 (Fiscal Year 2016-2017) Senior Citizen Social Services Program 13,380 $ 13,380 5,574 7,806 5,574 Home Improvement Program 275,000 275,000 96,810 178,190 96,810
Policy & Planning 76,000 76,000 41,926 $ 24,000 58,074 17,926
Code Enforcement Program 34,000 34,000 18,790 15,210 18,790 Roadway Rehabilitation 250,000 250,000 250,000 (250,000) 250,000
Program Income !3,234 255,805 (24,000) $ (127,000) 118,039
2012 Road Program (Ord. 16-12) 140,000 6,000 (6,000)
I !34,000
2016 Road Program (Ord. 18-16) 255,000 250,000 250,000 250,000
U.S. Department of Transportation (Passed Through New Jersey Department of Law
and Public Safety) Drunk Driving Enforcement Fund 20.601 1160-100-057 s 6,722 5,090 5,09o I 1,632
Drunk Driving Enforcement Fund 20.601 1160-100-057 6,702 6,702 6,702
U.S. Department of Homeland Security (Passed Through New Jersey Department of Law and Public Safety)
Public Assistance Grants 97.036 Hurricane Sandy 1200-100-A92 199,102 199,102 199,102 I 199,102
Emergency Management Program 97.042 1200-100-726 5,000 5,000 5,000
Emergency Management Program 97.042 1200-100-726 3,242 3,242 3,242
Emergency Management Program 97.042 1200-100-726 5,000 5,000 5,000
U.S. Department of Health and Human Services (Passed Through New Jersey Department of Health) HlNI Public Health Emergency Response 93.069 4230-100-4SO 195,788 35,127 35,127 1 160,661
U.S. Department of Justice
(Passed Through New Jersey Department of Law
and Pllblic Safety)
Edward Byrne Justice Grant 16.738 N/A 48,721 12,502 12,502
26.270 I 48,721
Edward Byrne Justice Grant 27,221 27,221 951 951
Edward Byrne Justice Grant 9,915 9,915 9,915
Local Law Enforcement Block Grant- FY 2004 17,548 17,548 17 548
$ 591,581 $ 1,109,989 $ 1,055,467 $ $ (133,000) s 513,103
See Accompanying Notes to Schedule of Expenditures of Federal Awards 161
SCHEDULE B Page 1
CITY OF RAHWAY SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER 31, 2016 Balance. Balance. Cumulative
Award Cash December3l. December31. Total
State Grant Pro<>ram Account Number Amou~ Received 2015 Revenue Expended Adjustment 2016 Expenditure~
Deuartment of Community Affairs Statewide Livable Communities Grant &030-100-655 s 60.000 $ 12.396 s 12.396 $ 47.604
Statewide Livable Communities Grant-Essex Street 60.000 60.000 60.000
Cooperative Housing Inspection 8010-100-023-2010 12.653 5.213 $ 5.213 12.653 13.760 13.760 5.395 8.365 5.395 11.094 s 11.094 11.094
Clean Communities Grant NIA 38.132 25.651 25.651 38.132 44.770 44.770 5.193 39.577 5.193 41.990 41.990 41.990
51.064 51.064 51.064
Brown fields NIA 27.271 27.271 27.271
Denartment of Environmental Protection Clean Energy Program 49.071 32.571 32.571 16.500
12.268 12.268 12.268
Recycling Tonnage Grant 4900-752-001 30.404 13.262 13.262 30.404 4900-752-001 26.956 26.956 12.000 14.956 12.000
14,791 14.791 14.791 62.670 62.670 62.670
Department of Health Public Heal!h Priority Funding 4230-100-307 75.530 282 282 I 75.248
Economic Develo[!ment Anthoritv Hazardous Discharge Site Remediation- FY 2009 313.170 30.180 10.299 19.881 I 293.289
Hazardous Discharge Site Remediation- FY 2011 284.033 177.839 177.839 106.194
Department of Law and Public Safetv Municipal Alliance Program- FY 2009 25.487 $ 26.689 15.207 15.207 I 25,487
Alcohol Education and Rehabilitation 4250-760-050000-63 229 229 229 496 496 496 250 250 250
l 1.097 11.097 11.097
Click It or Ticket Program NIA 3.906 3.599 3.599 8.0061
3.906 9.150 9.131 LJ25 l.l44 3.982
See Accompanying Notes to Schedule of Expenditures of State Financial Assistance 162
SCHEDULE 8 Page2
CITY OF RAHWAY SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED DECEMBER31, 2016 Balance. Balance. Cumulative
Award Cash December 31. December 31. Total State Grant Pro!lram Account Number Amount Received 2015 Revenue Expended ~ustment 2016 Expenditures
Del!artment of Law and Public Safe:D:: {Continued) You Drink. You Drive. You Lose NIA s 7.336 s 7.091 s 7.091 I s 245
Obey the Signs or Pay the Fines N/A 4.000 4.000 4.000
Police Body Annor Grant 1020-718-001 8.605 6.720 s 3.540 3.180 5.425 6.624 s 6.624 6.624
Safe and Secure Communities 1020-100-232 174.150 57.743 57.743 116.407 55.562 55.562 55.562
Drug Free Communities NIA 125.000 26.591 26.591 154.5771
125.000 250.000 s 49.587 250.000 95.423 95.423 125.000 125.000 125.000
Unclassified NJ Child Passenger Safety NIA 7.400 2.375 2.375 5.025
ADA T ASE Grant NIA I 6.320 11.240 11.240 5.080
NJ 911 General Assistance Grant NIA 25.362 301 301 25.061
Senior Services Grant NIA 40.523 8.607 2.168 6.439 34.084 15.000 1.856 1.856 13.144 5.000 5.000 5,000
Local Domestic Preparedness NIA 25.000 2.630 2.630 22.370
Green the Streets Grant NIA 250.000 97.403 97.403 152.597
Smart Gro\~th Program N/A 8.000 8.000 8.000
NJ Health Department Grant N/A 11.731 20 20 11.711
NJ 911 Equipment Grant- FY 2008 NIA 17.637 47 47 17.590
Pandemic Influenza Grant- FY 2008 NIA 13.288 8,987 8.987 4.301
De(!artment ofTransl!ortation 6320-480-60138X-61 2011 Road Resurfacings (Ord. l 0-ll) 190.983 ll5.160 333 114.827 76.156 2014 Road Improvements (Ord. 27-14) 237.820 55.568 37.357 I8.2ll 219.609 2016 Road Improvements (Ord. 18-16) 195.825 195.825 195.825 195.825 Highway Safety Gram 94.544 58.686 24.503 34.183 60.361 Highway Safety Grant 87.041 87.041 87.041
$ 1,351.699 $ 550.415 ~684 s $ 1.419.430
This schedule is not subject to Single Audit in accordance with NJ OMB Circular 15-08.
See Accompanying Notes to Schedule of Expenditures of State Financial Assistance 163
CITY OF RAHWAY NOTES TO THE SCHEDULES OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE YEAR ENDED DECEMBER 31, 2016
NOTE 1 GENERAL
The accompanying schedules present the activity of all federal awards and state financial assistance programs of the City of Rahway. The City is defined in Note 1(A) to the City's financial statements. All federal financial assistance received directly from federal agencies, as well as federal awards and state financial assistance passed through other government agencies is included on the schedules of expenditures of federal awards and 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 basis of accounting is described in Note I to the City's financial statements.
NOTE 3 RELATIONSHIP TO FINANCIAL STATEMENTS
Amounts reported in tl1e accompanying schedules agree with amounts reported in the City's financial statements. Financial assistance revenues are reported in the City's financial statements on a basis of accounting described above as follows:
Federal State Total
Current Fund $ 205,804 $ 354,590 $ 560,394 General Capital Fund 195,825 \95,825 Community Development Grant Fund 904,185 904,185
Total Financial Awards $ 1,109,989 $ 550,415 $ 1,660,404
NOTE 4 RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS
Amounts reported in tbe accompanying schedules may not necessarily agree with the amounts reported in the related federal and state financial reports due to timing differences between the City's fiscal year and grant program year.
164
CITY OF RAHWAY NOTES TO THE SCHEDULES OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE YEAR ENDED DECEMBER 31, 2016
NOTE 5 FEDERAL AND STATE LOANS OUTSTANDING
The City's federal and state loans outstanding at December 31,2016, which are not required to be reported on the schedules of expenditures of federal awards and state financial assistance, are as folJows:
Loan Program
Green Acres Loan Program New Jersey Redevelopment Authority Environmental Inftastructure Loan Dept. of Community Affairs
NOTE 6 DE MINIMIS INDIRECT COST RATE
Amount
$ 336,620 187,500 745,467
20,000
$ 1,289,587
The City has not elected to use the I 0 percent de minimis indirect cost rate allowed under the Uniform Guidance.
165
CITY OF RAHWAY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2016
Part I- Summary of Auditor's Results
Financial Statement Section
Type of auditors' report issued:
Internal control over financial repmting:
I) Material weakness( es) identified?
2) Were significant deficiencies identified that are not considered to be material weaknesses?
Noncompliance material to financial statements noted?
Federal Awards Section
Unmodified on Regulatory Basis
_____ yes _ __:.X.:..__ no
_____ yes _ __:.X.:..__ no
_____ yes _ __:.X.:..__ no
Dollar threshold used to determine Type A programs: $ 750,000
Auditee qualified as low-risk auditee?
Type of auditors' report on compliance for major programs:
Internal Control over compliance:
I) Material weakness( es) identified?
2) Were significant deficiencies identified that are not considered to be material weaknesses?
Any audit findings disclosed that are required to be reported in accordance with U.S. Unifonn Guidance
(section.SlO(a)
Identification of major programs:
CFDA Number(s)
14.218
_____ yes _ __,X_,__ no
Unmodified
_____ yes ----'X_:;__ no
_____ yes ----'X_:;__ no
_____ yes ----'X_:;__ no
Name of Federal Program or Cluster
Community Development Block Grant Funds
166
CITY OF RAHWAY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONT'D)
FOR THE YEAR ENDED DECEMBER 31, 2016
Part I- Summary of Auditor's Results
State Awards Section -Not Applicable
Dollar threshold used to determine Type A programs:
Auditee qualified as low-risk auditee?
Type of auditors' report on compliance for major programs:
Internal Control over compliance:
I) Material weakness(es) identified?
2) Were significant deficiencies identified that are not considered to be material weaknesses?
Any audit findings disclosed that are required to be reported in accordance with N.J. OMB Circular 15-08?
Identification of major programs:
GMIS Number(s)
167
$ __________________ _
_____ yes ____ no
_____ yes ____ no
_____ yes ____ no
_____ yes ____ no
Name of State Program
CITY OF RAHWAY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONT'D)
FOR THE YEAR ENDED DECEMBER 31, 2016
Part III- Schedule of Federal and State Award Findings and Questioned Costs
This section identifies the significant deficiencies, material weaknesses, and instances of noncompliance including questioned costs, related to the audit of major federal and state programs, as required by U.S. Uniform Guidance and New Jersey OMB Circular 15-08.
FEDERAL A WARDS
There are none.
STATE AWARDS
Not Applicable.
168
CITY OF RAHWAY SUMMARY SCHEDULE OF PRIOR-YEAR AUDIT FINDINGS
AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31,2016
This section identifies the status of prior-year findings related to the financial statements and federal and state awards that are required to be reported in accordance with Chapter 6.12 of Government Auditing Standards, U.S. OMB Circular A-133 (section .315(a)(b) and New Jersey OMB's Circular 15-08.
STATUS OF PRlOR YEAR FINDINGS
Finding 2015-001:
Our audit revealed that overexpenditures were incurred during the period under audit for the Water Utility Operating and Sewer Utility Operating Funds.
Current status:
Corrective action has been taken.
169
CITY OF RAHWAY
PART III
SUPPORTING DATA
LETTER OF COMMENTS AND RECOMMENDATIONS
YEAREND ED DECEMBER31, 2016
CITY OF RAHWAY COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCECURRENT FUND
Year Ended Year Ended
December 31, 2016 December 3 l, 20 l 5
Amount Percent Amount Percent
REVENUE AND OTHER INCOME REALIZED
Fund Balance Anticipated $ 2,300,000 2.07 % $ 2,500,000 2.27 Miscellaneous - From Other Than Local
Property Tax Levies !3,930,!66 !2.5! !3,900,439 !2.65
Collection of Delinquent Taxes
and Tax Title Liens !,809,776 !.63 !,202,752 l.ll
Collection of Current Tax Levy 9!,842,32 [ 82.49 90,496,12! 82.38 Other Credits to Income !,403,983 !.30 !,75!,365 !.59
Total Income [ [ [ ,286,246 !00.00 % !09,850,677 [ 00.00
EXPENDITURES
Budget Expenditures
Municipal Purposes 51,250,625 47.12 % 50,387,878 46.68
County Taxes !3,654,937 !2.55 !3,5!8,577 !2.52
Local School Taxes 42,753,589 39.3 [ 4!,959,236 38.87
Special Improvement Taxes !30,000 0.!2 740,000 0.70
Other Expenditures 924,785 0.90 [ ,328,97! !.23
Total Expenditures 108,7!3,936 !00.00 % !07,934,662 !00.00
Excess in Revenue 2,572,3!0 1,916,0!5
Fund Balance, Beginning of Year 5,758,676 6,342,66!
8,330,986 8,258,676
Less Utilization as Anticipated Revenue 2,300,000 2,500,000
Fund Balance, End of Year $ 6,030,986 $ 5,758,676
170
%
%
%
%
CITY OF RAHWAY COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE-WATER UTILITY OPERATING FUND
Year Ended Year Ended December 31, 2016 December 31, 2015
Amount Percent Amount Percent REVENUE AND OTHER INCOME REALIZED
Collection of Water Rents $ 6,368,360 98.05 % $ 5,721,332 99.40 % Water Connection Fees Miscellaneous - From Other Than
Water Rents 126,443 1.95 34,708 0.60
Totallncome 6 494 803 100.00 % 5 756 040 100.00 %
EXPENDITURES
Budget Expenditures
Operating 3,933,484 69.36 % 4,228,458 72.41 % Capital Improvements 50,000 0.88 50,000 0.86 Deferred Charges 399,555 7.05 335,285 5.74 Debt Service 1,288,222 22.71 l, 179,278 20.19
Other Expenditures
Refund of Prior Year Revenue 46,814 0.80
Total Expenditures 5,671,261 100.00 % 5,839,835 100.00 %
Excess (Deficiency) in Revenues Over
(Under) Expenditures 823,542 (83,795)
Adjustments to Income Before Fund Balance
Expenditures Included Above which by Statute
are Required to be Raised in Subsequent Year 389,154 Surplus to General Budget (334,739) (167,385)
Statutory Excess to Fund Balance 488,803 137,974
Operating Deficit
Fund Balance, Beginning of Year 166,831 28,857
Fund Balance, End of Year $ 655,634 $ 166,831
171
CITY OF RAHWAY COMPARATIVE STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE-SEWER UTILITY OPERATING FUND
Year Ended Year Ended December 31, 2016 December 31, 20 15
Amount Percent Amount Percent REVENUE AND OTHER INCOME REALIZED
Fund Balance Anticipated $ 250,000 4.89 % $ 250,000 4.57 % Rents 4,488,364 87.83 4,954,529 90.50 % Industrial Sewer Flow Charges 302,070 5.91 181,625 3.32 Sewer Connection Fees Miscellaneous - From Olher Than Sewer Rents 66,576 1.30 19,927 0.36
Other Credits to Income 3,352 0.07 68,825 1.25
Total Income 5 110 362 100.00 % 5 474 906 100.00 %
EXPENDITURES
Budget Expenditures
Operating 4,579,000 91.65 % 4,496,386 92.10 % Deferred Charges and Statutory Expenditures 32,745 0.66 11,200 0.23 Capital Improvements 21,200 0.42 25,000 0.51 Debt Service 363,243 7.27 349,542 7.16
Total Expenditures 4,996,188 100.00 % 4,882,128 100.00 %
Excess in Revenue 114,174 592,778
Adjustments to Income Before Fund Balance Expenditures Included Above which by Statute
are Required to be Raised in Subsequent Year 20,745 Surplus to General Budget (114,174) (387,612)
Statutory Excess to Fund Balance 225,911
Fund Balance, Beginning of Year 2,016,196 2,040,285
2,016,196 2,266,196
Less Utilization as Anticipated Revenue (250,000) (250,000)
Fund Balance, End of Year $ 1,766,196 $ 2,016,196
172
CITY OF RAHWAY COMPARATIVE SCHEDULE OF TAX RATE INFORMATION
Tax Rate- Calendar Year
Apportionment of Tax Rate
Municipal (I) County Local School
(1) Includes Library
Assessed Valuation
2016
2015
2.519 .935
2.935
$1.457.454 614
2.490 .931
2.896
$L449.192 757
2.399 .982
2.823
2014 $1 44'1,.~_12 047
COMPARISON OF TAX LEVIES AND COLLECTION CURRENTLY
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 Tax Levy Cash Collections Collection
2016 $ 93,350,313 $ 91,842,321 98.38%
2015 92,427,947 90,496,121 97.90%
2014 90,555,835 89,054,640 98.34%
2013 88,206,982 86,556,610 98.12%
2012 85,328,911 84,007,780 98.45%
173
CITY OF RAHWAY DELINQUENT TAXES AND TAX TITLE LIENS
This tabulation includes a comparison, expressed in percentage, of the total of delinquent taxes and tax title liens, in relation to the tax levies of the last five years.
Amount of Amount of Percentage Tax Title Delinquent Total of
Year Liens Taxes Delinquent Tax Levy
2016 $ 422,273 $ 1,431,810 $ 1,854,083 1.99% 2015 395,011 1,786,381 2,181,392 2.36% 2014 224,678 1,400,586 1,625,264 1.79% 2013 196,216 1,511,682 1,707,898 1.93% 2012 133,932 1,323,499 1,457,431 1.71%
PROPERTY ACQUIRED BY TAX TITLE LIEN LIQUIDATION
The value of property acquired by liquidation of tax title liens at year end on the basis of the last assessed valuation of such properties was as follows:
Balance YearEnd
2016 2015 2014 2013 2012
COMPARISON OF WATER UTILITY LEVIES
Year Levy
2016 $6,456,203 2015 5,899,739 2014 5,527,345 2013 5,543,876 2012 5,142,327
*Includes collection of prior year receivables
COMPARISON OF SEWER UTILITY LEVIES
Year 1ro'
2016 $4,506,511 2015 4,943,023 2014 4,634,975 2013 4,689,631 2012 4,490,035
174
Amount
$ 2,644,300 2,644,300 2,644,300 2,644,300 2,644,300
Cash Percentage Collections of Collection*
$6,368,360 $98.64% 5,721,332 96.97 5,638,802 102.02 5,596,506 100.94 5,143,748 100.02
Cash Percentage Collections of Collection
$4,488,364 99.59% 4,954,529 100.23 4,712,956 101.68 4,824,462 102.87 4,640,555 103.35
CITY OF RAHWAY
COMPARATNESCHEDULEOFFUNDBALANCE Utilized in Budget of
Balance Succeeding Year YearEnd Year
Current Fund 2016 $6,030,986 $2,200,000 2015 5,758,676 2,300,000 2014 6,342,661 2,500,000 2013 6,687,249 3,000,000 2012 4,400,604 1,500,000
Water Utility Operating Fund 2016 $655,364 $ -0-2015 166,831 -0-2014 28,857 -0-2013 28,857 -0-2012 28,857 -0-
Sewer Utility Operating Fund 2016 $1,766,196 $250,000 2015 2,016,196 250,000 2014 2,040,285 250,000 2013 1,952,685 -0-2012 963,604 -0-
175
CITY OF RAHWAY OFFICIALS IN OFFICE AND SURETY BONDS AS OF DECEMBER 31, 2015
Amount of Bond
Samson D. Steinman James E. Baker Joanna Miles Jeremy Mojica Rodney F anar Michael Cox Robert Bresenhan, Jr. David Brown Jennifer Wenson Maier Raymond Giacobbe, Jr. Rayna Harris Cherron Rountree Michael Smalling John Rodger
William R. Young, Jr. Frank Ruggiero Richard Lorentzen
Andrea Zapcic Brian M. Hak Roman Montes Marylene Shepard Thomas Mancuso Richard Watkins
Warren J. Hehl
Mayor Councilmember-at-Large Councilmember-at-Large Councilmember-at-Large Councilmember- Ward I Councilmember- Ward 2 Councilmember- Ward 3, Council President Councilmember- Ward 4 Councilmember - Ward 5 Councilmember- Ward 6 City Clerk Business Administrator Director of Public Works and Engineering Director/Chief of Police/Emergency
Management Coordinator Director/Fire Chief Chief Financial Officer Tax Collector/ Tax Search Officer Director of Parks and Recreation Director of Law Municipal Judge Court Administrator Director of Assessments/Tax Assessor Director of Building, Planning and Economic
Development/Construction Code Official Health Officer
$ 50,000 (A) 50,000 (A)
50,000 (A) 50,000 (A) 50,000 (A)
250,000 (A) 50,000 (A)
50,000 (A) 100,000 (B) 50,000 (A)
50,000 (A) 50,000 (A)
A. Public Employee Dishonesty Blanket coverage as written by the Travelers Casualty and Surety Company of America in the amount of $50,000.
B. Municipal Court bond as written by the Travelers Casualty and Surety Company of America in the amount of $100,000, Bond #105421641.
176
CITY OF RAHWAY GENERAL COMMENTS
Current Year
Finding - Our audit indicated that monthly reconciliations of the Net Payroll, Payroll Agency and Professional Escrow bank accounts were not performed.
Recommendation - Formal bank reconciliations be performed on a monthly basis for the Net Payroll, Payroll Agency and Professional Escrow bank accounts.
Finding - Our audit indicated that old outstanding checks remain on the reconciliations of various City bank accounts.
Recommendation - Old outstanding checks be reviewed and appropriately cleared of record from City bank account reconciliations.
Finding- Our audit indicated that purchase orders were not always issued to vendors prior to goods being received and/or services being rendered. In addition, contracts were not always encumbered upon award.
Recommendation - In all instances, contracts be encumbered upon award and purchase orders be issued prior to the ordering of goods or services.
Prior Year Unresolved
Finding - Our audit of the Office of the Tax Collector revealed the following:
a) Prior year tax overpayments reported in the tax system do not appear to reflect valid balances owed by the City.
b) State tax court judgments and applicable refunds were not reflected in the respective taxpayer account histories.
Recommendation -a) Prior years tax overpayments be cleared of record. b) State tax court judgments be reflected in the taxpayer history.
Contracts and Agreements Required to be Advertised for NJS 40A:ll-4
NJS 40A: 11-4 states "Every contract or agreement, for the performance 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 terms of Section 3 of this act, shall be made or awarded only by the Governing Body of the contracting unit 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."
The Governing Body of the City has the responsibility of determining whether the expenditures in any category will exceed $40,000 within the fiscal year. Where question arises as to whether any contract or agreement might result in violation of the statute, the City Council's opinion should be sought before a commitment is made.
177
CITY OF RAHWAY GENERAL COMMENTS
Contracts and Agreements Required to be Advertised for NJS 40A:ll-4 (Continued)
The minutes indicate that bids were requested by public advertising for the following item:
Basketball and Tennis Court Renovations Sewer Inflow and Infiltration- Phase Ill
2016 Roadway Resurfacing Project Sinkhole Repairs
The minutes indicate that resolutions were adopted and advertised, authorizing the awarding of contracts or agreements for "Professional Services" per N.J.S.A. 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 determine whether any clear-cut violations existed.
Collection of Interest on Delinquent Taxes and Assessments
The statutes provide the method for authorizing interest and the maximum rates to be charged for the nonpayment of taxes or assessments on or before the date when they would become delinquent.
The Governing Body on August II, 1986 adopted the following ordinance authorizing interest to be charged on delinquent taxes:
"NOW BE IT RESOLVED, by the Municipal Council of the City of Rahway that the Tax Collector of said City of Rahway, is hereby authorized and directed to provide for a grace period not exceeding ten (I 0) calendar days within which any installment of taxes or assessments may be hereafter received without any charge for interest provided that such payment is received within the said ten (I 0) calendar day period after the date upon which the installment becomes payable. After such date said taxes shall be considered delinquent and interest shall run against such delinquent taxes at the rate of eight (8%) percent, on the first $1,500 of the delinquent taxes and eighteen (18%) percent of any delinquent sum in excess of$1,500."
It appears from an examination of the Collector's records that interest was collected in accordance with the foregoing ordinance.
Collection oflnterest on Delinquent Water and Sewer Rents
The governing body on December 28, 1981 adopted the following ordinance authorizing interest to be charged on delinquent utility rents:
Grace Period. Bills are due upon receipt. A grace period of thirty (30) calendar days is provided within which a payment of utility charges may be hereafter received without any charge for interest, provided that such payment is received within said thirty calendar-day period after the billing date upon which the amount becomes payable.
Interest Rates. After the above grace period, utility charges shall be considered delinquent, and interest shall run against such delinquent charges at the rate of eight percent (8%) on the first one thousand five hundred dollars ($1 ,500) of the delinquent water utility charges and eighteen percent (18%) on any delinquent sums in excess of one thousand five hundred dollars ($1,500).
178
CITY OF RAHWAY GENERAL COMMENTS
Collection oflnterest on Delinquent Water Rents (Continued)
It appears from an examination of the Collector's records that interest was collected in accordance with the foregoing ordinance.
The last tax sale was held on December 9, 2016 and was complete.
The following comparison is made of the number of tax title liens receivable of the last five years.
Year Number of Liens
2016 12 2015 16 2014 II 2013 II 2012 8
179
CITY OF RAHWAY RECOMMENDATIONS
It is recommended that:
*
I. Formal bank reconciliations be performed on a monthly basis for the Net Payroll, Payroll Agency and Professional Escrow bank accounts.
2. Old outstanding checks be reviewed and appropriately cleared of record from City bank account reconciliations.
3. In all instances, contracts be encumbered upon award and purchase orders be issued prior to the ordering of goods or services.
4. With respect to the Office of the Tax Collector:
a) Prior years tax overpayments be cleared of record. b) State tax court judgments be reflected in the taxpayer history.
A review was performed on all prior years' recommendations and corrective action was taken with the exception of those recommendations denoted with an asterisk(*).
The findings noted in our audit were not of such magnitude that they would affect our ability to express an opinion on the financial statements taken as a whole.
Should any questions arise as to our comments and recommendations, or should you desire assistance in implementing our recommendations, please do not hesitate to call us. c . ';:;::L£, ·, ~£, //r
180
RCH, VINCI & HIGGI~ Certified Public Accountants Registered Municipal Accountants
· Die er P. Lerch Certified Public A countant RMA Number CR00398