Budget in Depth: Revenue Projected to Drop in Most Non Tax Areas

A look at the proposed 2010 town budget shows drops in projected revenues for most non-tax lines in the budget.

Town finance officials noted that the declining revenue projections for areas outside of taxation is the dominating theme of the budget proposal. This includes a by Gov. Chris Christie in March, along with declines in permit fees and interest income.

Councilman Mark Ciarrocca, the finance committee chairman, explained to the Town Council during his budget presentation Tuesday evening that the national housing crisis has reduced construction in Westfield, decreasing the total amount of construction permit fees in the community. The decreasing amount of surplus in town coffers is impacting the amount of investment income earned by town funds each year.

Budget documents released by the town last year, shows that the town is showing a $132,000 drop in permit fees to the building department and a $199,000 drop in investment income for the current budget.

Town Administrator Jim Gildea noted that not every area of non-tax revenue has been seeing decreases in the past year. He said that parking permit fees has been on the rise and seeing more money for the town treasury.

A look at budget documents released by the town Tuesday night, shows that property taxes will account for 64.78-percent - or $25,333,441.11 - of the town's total revenue. Miscellaneous revenue, which includes all fees and investment income will account for 15.14-percent - or $5,921,927.23 - of the revenue pie. The town is projecting state aid to account for 8.04-percent - or $3,145,313 - of the budget. Surplus spending will account for 8.01-percent - or $3,133,000 - of the budget. Delinquent tax payments will account for 4.02-percent - or $1,574,000 of the budget.

Gildea noted that there are several areas of the revenue pie that the town cannot project currently but will help with funding for this year and recouping surplus for next year. He said the category of "miscellaneous revenues not anticipated" - which includes grants and other funds - will likely bring in $250,000 over the course of the year, but the state does not allow this estimate to be used to calculate municipal spending in the proposed budget. MRNA fund estimates - which is roughly $36,000 below the actual 2009 MRNA revenue - will be used towards recouping surplus for the 2011 budget.

A Look at Revenue Projection Line Items in 2010 Budget

Surplus Anticipated

• Fund Balance - $1,840,000 anticipated in 2010, a decrease of $860,000 from 2009.
• Sale of Municipal Assets Account - $1,293,000,  a decrease of $830,100 from 2009.

Miscellaneous Revenues

• Alcoholic Beverage Licenses - $28,850, a decrease of $150 from projected 2009 revenue. Actual 2009 revenue was $150 below projection.
• Other Licenses - $43,500, an increase of $1,500 from projected 2009 revenue. Actual 2009 revenue was $1,676.50 above projection.
• Construction Code Official Fees and Permits - $468,000, a decrease of $132,000 from projected 2009 revenue. Actual 2009 revenue was $131,567.40 below projection.
• Other Fees and Permits - $450,000, an increase of $40,000 from projected 2009 revenue. Actual 2009 revenue was $40,375 above projection.
• Municipal Court Fines - $$750,000, a decrease of $34,000 from projected 2009 revenue. Actual 2009 revenue was $16,415.40 below projection.
• Interest and Costs on Taxes - $310,000, a decrease of $23,000 from projected 2009 revenue. Actual 2009 revenue was $21,457.34 below projection.
• Parking Meters and Permits - $1,800,000, an increase of $138,000 from projected 2009 revenue. Actual 2009 revenue was $144,403.97 above projection.
• Interest on Investments and Deposits - $16,000, a decrease of $199,000 from projected 2009 revenue. Actual 2009 revenue was $198,039.53 below projection.
• Health Services Agreeement - $517,291, an increase of $31,208 from projected 2009 revenue. Actual 2009 revenue was $1,424 below projection.
• Payment in Lieu of Taxes for Senior Citizen Housing - $180,000, an increase of $4,000 from projected 2009 revenue. Actual 2009 revenue was $48,949 above projection.
• Fire Safety Act Fees and Permits - $26,733, a decrease of $2,793 from projected 2009 revenue. Actual 2009 revenue was $5,374 below projection.
• Alliance on Alchoholism and Drug Abuse - $28,376, this line item remains flat from projected 2009 revenue. Actual and projected 2009 revenue was the same on this item.
• Pool Utility Surplus - $125,792, an increase of $125,792 in projected 2009 budget. This is a new revenue line for 2010.
• Cable TV Revenue from Comcast - $209,382.45, a decrease of $21,986.80 from projected 2009 revenue. Actual and projected 2009 revenue was the same at $231,369.25.
• Cable TV Revenue from Verizon - $150,002.78, an increase of $43,055.49 from projected 2009 revenue. Actual and projected 2009 revenue was the same at $106,947.29.
• Prepaid School Taxes - $818,000, a decrease of $6,000 from projected 2009 revenue. Actual 2009 revenue was $962 above projection.
• Total Miscellaneous Revenue - $5,921,927.23, a decrease of $35,374.31

State Aid

• Energy Receipts Tax - $2,543,799, a decrease of $309,928 from 2009.
• CMTRA Allocation - $529,527, a decrease of $631,542 from 2009.
• Public Health Priority Fund Act of 1977 - $22,970, a decrease of $5,456 from 2009.
• Clean Communities Program - $47,076.37, a roughly $1,800 increase from 2009.
• Body Armour Replacement Aid - $1,940.66, a $3,774.69 decrease from 2009.
• State Aid (Mandated and Discretionary) - $3,145,313.03, a decrease of $903,624.32.

The $941,000 cut in state aid figure represents cuts in discretionary state aid. Total state aid includes the clean communities funding which cannot be cut without legislation.

Chapter 159 Grants

These are grant funds that the town cannot anticipate at the present time. Here is a look at 2009 grant revenue received.

• Alcohol Education and Rehab Program - $$788.96 in income in 2009.
• Library Summer Program - $1,250 in income in 2009.
• Public Safety DWI - $13,305.46 in income in 2009.
• H1N1 Virus Grant - $80,204 in income in 2009.
• Paris Grant for Document Scanning - $20,000 in income in 2009.
• Total - $115,278.42 in income in 2009.

Receipts from Delinquent Taxes

• $1,574,000, an increase of $174,000 from projected 2009 budget. Actual 2009 revenue was $93,232.67 above projection.

Total Non Tax Revenue

• $13,774,240.26, a decrease of $2,455,098.63 from projected 2009 revenue. Actual 2009 revenue was $398,246.63 above projection.