4/27/16 Council Meeting

PERTH AMBOY – On the Agenda at this Meeting was Resolution R-191-4/16 Amending the CY2016 Budget. A pubic hearing on Amendments and possible adoption of amended budget was to be held on May 2, 2016 at 4:30 p.m. at City Hall Chambers. Questions were asked about some of the items on the budget data sheet. A copy of the 2016 Municipal Budget was available for the public at the 4/27/16 Council Meeting. During the 4/27/16 Council Meeting CFO and Comptroller Jill Goldy reread the following statement regarding the cap. The first time this statement was read was at the 4/18/16 Budget Hearing.

In New Jersey, budget appropriations are generally subject to a year over year increase of 2%. The calculation of this increase is subject to various exceptions. As well, if an ordinance is passed by the local unit’s governing body, the local unit can elect to use a 3.5% cap and may bank the available amount to which appropriations in the adopted budget are under the 3.5% cap. Two years’ worth of cap bank are available for use in subsequent years’ budgets.

As it historically does, the City elected the 3.5% cap for 2016, not because it excepts to exceed the 2% cap on appropriations but merely to allow for the banking of the higher amount should capacity be needed for either the 2017 or 2018 budgets. In fact, if the 2016 budget is adopted as was introduced, such budget is well within the 2% appropriations cap.

The 2014 cap bank is $2,406,958.18 and will expire upon adoption of the 2016 budget. The 2015 cap bank is $1,220,358.53 and will remain available for use in the 2017 budget if needed. The 2016 cap bank, should the 2016 budget be adopted as introduced, would be $1,076,521.67 and would be available for either the 2017 budget if needed, or could be available for the 2018 budget.