2020 Passaic CountyBudget Introduction

February 11, 2020

Passaic County Board of Chosen

Freeholders

Cassandra “Sandi” Lazzara, Director

Pasquale “Pat” Lepore, Dep Director

Assad R. Akhter

John W. Bartlett, Esq.

Theodore “TJ” Best

Terry Duffy

Bruce James

2020 Passaic County Budget Development Process

Includes a detailed and analytical review of each department concentrating on the following:

• Reviewing each table of organizations focusing on

vacancies

• Reviewing operating expenses looking at a five-year

historic trend in spending

• Reviewing current and future grant opportunities

• Examining future departmental needs

• Identifying potential future risk areas

• Five-year capital request for each department

Vision, Mission & GoalsVision

Passaic County will continue to highlight our Rich History and Bright Future by continuing to build on our fiscal stability. We will continue to focus on quality of life issues, assure a safe and maintained infrastructure and offer cultural and recreational opportunities for all our residents and visitors. We will continue to offer support for those most in need with compassion and the dignity they deserve.

Mission

To protect and preserve the quality of life for our diverse population, all while being effective and efficient stewards of tax dollars.

Our Goals• Protect the County's bond rating

• Continue our conservative budgeting approach

• Stabilize taxes

• Continue to increase crucial appropriations

• Increase reserves to insure fiscal stability for future generations

• Continue to provide critical investments in our infrastructure our parks and our historic sites

• Reduce debt for future generations

• Continue to identify shared services with our municipalities and other counties

Achieving Our GoalsProtecting the County's Bond Rating

Moody’s Investors Services

Upgrades Passaic County to Aa1

The second highest rating available from Moody’s and the highest rating in Passaic

County history!

Passaic County’s Rating History

DATE RATING AGENCY RATING REASON

1998 Moody’s A3 Downgraded

March 2010 Moody’s A2 Upgrade

April 2010 Moody’s Aa3 Recalibration

June 2013 Standard & Poor’s AA Upgrade

November 2017 Moody’s Aa2 Upgrade

October 2019 Moody’s Aa1 Upgrade

Achieving Our Goals - Stabilizing Taxes

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2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

• The last four (4) years the county levy has increased an average of ONLY 0.46%• Over the last ten (10) years the county levy has increased an average 1.76%, staying under the state mandated cap

Achieving Our Goals - Stabilizing Taxes

0.66

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0.71

0.72

0.73

0.74

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0.76

2015 2016 2017 2018 2019

County tax rate continues to decline

Achieving Our GoalsContinuing to increase crucial appropriations

APPROPRIATIONS 2020 2019 CHANGE PERCENTAGE

General Government $44,109,531 $43,146,992 $962,539 2.23%

Insurance $80,721,000 $84,421,000 ($3,700,000) (4.38%)

Regulation $31,868,184 $31,815,334 $52,850 (0.37%)

Roads & Bridges $4,363,840 $4,155,050 $208,790 5.02%

Correction & Penal $46,764,726 $48,083,925 ($1,319,199) (2.74%)

Health & Welfare $70,620,333 $69,968,097 $652,236 0.93%

Education $22,987,355 $22,504,129 $483,226 2.15%

Parks & Recreation $6,880,761 $5,194,885 1,685,876 32.45%

Unclassified $10,468,151 $11,009,319 ($541,168) (4.92%)

Contingency $50,000 $50,000 $0.00 0.00%

Capital Improvements $3,500,000 $2,000,000 $1,500,000 75.00%

Debt Service $54,634,550 $53,878,159 $756,391 1.40%

Deferred Charges & Statutory Expenditures

$49,561,244 $50,120,560 ($559,316) (1.12%)

Total (Net of Grants) $426,529,675 $426,347,450 $182,225 0.04%

Achieving Our Goals

Increasing reserves to insure fiscal stability for future

generations

HIGHEST FUND BALANCE IN PASSAIC COUNTY HISTORY

Without using one-time gimmicks, Passaic County increased fund balance

194% over the past seven (7) years

YEAR FUND BALANCE

2019 $77,510,058

2018 $66,427,185

2017 $50,056,246

2016 $45,016,252

2015 $34,364,188

2014 $26,052,147

2013 $26,351,307

Source, Passaic County Audit Reports, and 2019 Annual Financial Statement (unaudited)

RESERVES 2017 2018 2019

Workers’ Compensation $5,456,202 $4,135,509 $9,616,289

Health Benefits $13,912,500 $22,005,719 $25,067,153

Liability Insurance $5,436,558 $5,352,632 $17,405,901

Snow Removal $783,671 $877,784 $2,174,124

Accumulated Absences $774,927 $999,488 $1,645,217

Unemployment Compensation $731,357 $588,015 $1,254,670

County Pension Plan $575,735 $577,063 $1,748,320

TOTAL RESERVES $27,670,950 $34,536,210 $58,911,674

TOTAL RESERVES PLUS FUND BALANCE $77,727,196 $100,963,395 $136,121,732

Achieving Our GoalsIncreasing reserves to insure fiscal stability for future generations

Source, Passaic County Audit Reports, and 2019 Annual Financial Statement (unaudited)

YEAR FUND BALANCE ANTICIPATED FUND BALANCE REGENERATED CURRENT FUND BALANCE

2019 $19,000,000 $30,082,873 $77,510,058

2018 $19,000,000 $35,370,939 $66,427,185

2017 $18,000,000 $23,039,994 $50,056,246

2016 $18,000,000 $28,652,064 $45,016,252

2015 $18,000,000 $26,312,041 $34,364,188

Achieving Our GoalsBalance than Never anticipating more Fund we regenerate

Source, Passaic County Audit Reports, and 2019 Annual Financial Statement (unaudited)

Achieving Our Goals

Continuing to provide critical investments in our infrastructure, parks and historic sites

Projects Currently Under Construction:

• Rehabilitation of Courthouse Annex, Paterson

• New DPW Building, Wayne

• Two Bridges Road Bridge and West End Extension Project,

Wayne

• Replacement of Morsetown Road Culvert, West Milford

• Energy Savings Program

• 2019 Road Resurfacing Program (total of 9.76 miles)

• Goffle Brook Park Improvements, South of Diamond

Bridge Avenue, Hawthorne

• Weasel Brook Park – Phase II Improvements, Clifton

• Dundee Island Park, Passaic

• Elevator Renovations at Parking Garage and Board of

Social Services, Paterson

Achieving Our Goals

Reducing debt for future generations

YEAR PRINCIPAL INTEREST TOTAL DEBT SERVICE

2020 $28,717,000 $8,939,760 $37,656,760

2021 26,073,000 7,993,136 34,066,136

2022 25,800,000 7,124,678 32,924,678

2023 24,505,000 6,307,867 30,812,867

2024 25,448,000 5,450,955 30,898,955

2025 22,696,000 4,539,263 27,235,263

2026 23,439,000 3,653,351 27,092,351

2027 19,282,000 2,865,850 22,147,850

2028 17,795,000 2,164,645 19,959,645

2029 11,395,000 1,675,008 13,070,008

2030 9,705,000 1,309,808 11,014,808

2031 9,895,000 1,011,570 10,906,570

2032 6,705,000 704,845 7,409,845

2033 6,852,000 512,395 7,364,395

2034 4,820,000 323,050 5,143,050

2035 4,060,000 230,950 4,290,950

2036 2,370,000 142,650 2,512,650

2037 2,385,000 71,550 2,456,550

TOTAL $271,942,000 $55,021,330 $326,963,330

• 84% of debt will be amortized over the next 10 years

• Debt principal drops off starting in 2021

• Capital Budget adopted policy is to issue no more than $10,000,000 in debt per year

Source, Passaic County Department of Finance

Achieving Our Goals

Continuing to identify shared services

Partnering with local governments to consolidate and regionalize operations

Youth Detention Center with Essex County

Consumer Affairs with Bergen County

Public Health Services

• Borough of Haledon

• Borough of Wanaque

• Borough of Woodland Park

• Township of West Milford

Information Technology

• City of Passaic

• Borough of Pompton Lakes

• Wanaque Board of Education

• Borough of Woodland Park

Operation of Hamilton House Museum - City of Clifton

Fueling – Pompton Lakes, Prospect Park and West Milford

Brining – Borough of Hawthorne

PASSAIC COUNTY’S FUTURE IS BRIGHT

• Replacement of the Fairlawn Avenue Bridge, Paterson

• Paterson Hamburg Turnpike and Alps Road intersection improvements, Wayne

• Superstructure reconstruction of Spruce Street Bridge, Paterson

• 2020 road resurfacing program (approx. 4.5 miles)

• Replacement of Kingsland Avenue Bridge, Clifton

• Replacement of North Haledon Avenue culvert, NorthHaledon

• Lambert Castle & Carriage House Restoration, Paterson

• Morris Canal Greenway – Browertown Road Project, LittleFalls & Woodland Park

• Goffle Brook Park parking lot expansion, Hawthorne

• Rifle Camp Park Phase I improvements – Woodland Park

• Highlands Preserve Athletic Field improvements – WestMilford

• Elevator renovation for Court House, Paterson

• Highlands Rail Trail – Phase I, Wanaque

Bright FutureInvesting in our infrastructure, parks and historic sites in 2020

Bright FutureContinued growth in the tax base

• 11% overall growth in Passaic County over the past 5 years and every municipality has seen positive growth

• Passaic, Paterson and Prospect Park have had over 20% growth since 2015

Source, Passaic County Board of Taxation, Abstract of Ratables

EQUALIZED VALUATION OF CONSTITUENT MUNICIPALITIES

MUNICIPALITY 2019 2017 2015 % Increase from 2015 to 2019

Bloomingdale $ 834,954,585 $ 843,411,170 $ 796,502,271 4.83%

Clifton 10,110,595,494 9,662,113,780 9,558,441,489 5.78%

Haledon 592,972,127 537,152,256 538,282,439 10.16%

Hawthorne 2,610,503,015 2,363,975,373 2,309,625,963 13.03%

Little Falls 1,655,423,783 1,627,535,576 1,648,964,705 0.39%

North Haledon 1,376,047,491 1,315,477,970 1,302,643,635 5.63%

Passaic 3,852,023,124 3,430,959,275 3,089,652,409 24.67%

Paterson 7,599,909,715 6,091,931,422 5,925,172,890 28.26%

Pompton Lakes 1,214,545,374 1,125,987,876 1,125,411,927 7.92%

Prospect Park 320,825,501 282,294,785 264,717,261 21.20%

Ringwood 1,707,595,885 1,632,305,507 1,638,586,197 4.21%

Totowa 2,174,893,916 2,128,007,043 2,167,694,622 0.33%

Wanaque 1,318,773,459 1,262,422,911 1,257,130,277 4.90%

Wayne 10,316,180,734 10,104,904,128 9,285,439,839 11.10%

West Milford 3,026,786,605 2,997,893,718 2,907,269,303 4.11%

Woodland Park 1,808,328,203 1,802,509,345 1,689,584,117 7.03%

TOTAL $50,520,359,011 $47,208,882,135 $45,505,119,344 11.02%

Bright Future

Real estate transfer fees increased 67% since 2011

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2011 2012 2013 2014 2015 2016 2017 2018 2019

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Bright Future

Median home values in Passaic County on the rise - $354,823

• Up 2.2% over the past year

• Predictions are they will rise 2.4% over the next year

• 9th highest median home value of New Jersey’s 21 counties

• Above the state median home values - $336,389

• Over the last 10 years unemployment has

dropped 68%

• November 2019 - 3.9%

• January 2010 - 12.2%

Bright FutureUnemployment rate is at historic low

QUESTION & ANSWERRich History. Bright Future.