CITY OF TRENTON
FY 2012 PROPOSED BUDGET
November 3, 2011
1
Overview
• Proposed FY 2012 budget totals $182.6
million including grants - $22.9 million less
than FY 2011
• Not including grants budget totals $180.8
million - $3.6 million less than FY 2011
budget of $184.4 million and $8.5 million
less than FY 2010 budget of $189.3 million
2
COMPARISION FY2010, FY2011, FY2012 BUDGETS
190
$189.3
188
186
$184.4
Millions
184
182
$180.8
180
178
176
FY 2010 Budget FY 2011 Budget FY 2012 Budget
3
Overview
• Proposed budget increases municipal tax
levy from $71.9 million to $73.2 million –
increase of $1.3 million, or 1.93%
• Represents a decrease of $1.8 million
from the $75 million levy approved in June
4
Revenue Summary
• Revenue totals $182.6 million including grants
• Excluding grants revenue totals $180.8 million –
decrease of $3.9 million from FY 11
• Transitional Aid reduced from $27.1 million to $22 million
• Other state aid totals $46.2 million – down by $55,000
• Local revenues including PILOTS totals $38.9 million –
increase by approximately $200,000
• Municipal purposes tax levy of $71.1 million – increase
of $1.1 million
• Type 1 school tax levy of $2.1 million – increase of
$250,000
5
Revenue Summary
CITY OF TRENTON FY 2012 Budget Projection
Final Introduced
Revenues FY 2011 Budget FY 2012 Budget Variance Pctg
Surplus - - - 0.00%
Transitional Aid 27,100,000.00 22,000,000.00 (5,100,000.00) 12.05%
CMPTRA/Energy Tax 44,103,855.00 44,103,855.00 - 24.16%
Building Aid Allowance 2,130,596.00 2,077,134.00 (53,462.00) 1.14%
Garden State Trust & Watershed 705.00 705.00 - 0.00%
PILOT - Federal & State 15,044,867.85 15,100,239.39 55,371.54 8.27%
PILOT - Commercial 3,526,124.19 3,727,922.98 201,798.79 2.04%
Local Revenues 20,149,225.80 20,103,579.60 (45,646.20) 11.01%
Grant 20,818,695.00 1,787,076.00 (19,031,619.00) 0.98%
Taxes - Municipal 70,071,609.22 71,132,214.18 1,060,604.96 38.96%
Taxes - Type I School Tax 1,858,676.05 2,101,492.25 242,816.20 1.15%
Taxes - Delinquent 663,388.14 423,175.54 (240,212.60) 0.23%
Total Revenues 205,467,742.25 182,557,393.94 (22,910,348.31) 100%
6
State Aid Analysis
State Aid from FY 10 through FY 12
$87.6
$90
$80 $73.3 $68.2
Millions
$70
$60
$50
$40
$30
$20
$10
$-
FY 2010 FY 2011 FY 2012
Fiscal Year
7
FY 2012 Revenue
Taxes - Delinquent
0.2%
Surplus
Taxes - Type I School Tax 0.0% Transitional Aid
1.2% 12.1%
CMPTRA/Energy Tax
24.2%
Building Aid Allowance
Taxes - Municipal (with no
1.1%
increase)
39.0%
Garden State Trust &
Grant Watershed
1.0% 0.0%
Local Revenues
11.0% PILOT - Commercial
2.0% PILOT - Federal & State
8.3%
8
Appropriations Summary
• Overall budget excluding grants totals
$180.8 million, $3.6 million less than FY
11 budget
• Overall budget excluding grants is $8.5
million less than FY 10
9
FY 11 and FY 12 Appropriations Summary
Final Introduced
APPROPRIATIONS FY 2011 Budget FY 2012 Budget Variance Pctg
Mayor's Office 711,838 661,377 (50,461.00) 0.36%
City Council & City Clerk 482,001 533,385 51,384.00 0.29%
Administration 2,687,933 2,632,020 (55,913.00) 1.44%
Finance 1,893,988 1,798,493 (95,495.00) 0.99%
Law 1,850,799 2,090,435 239,636.00 1.15%
Health & Human Services 3,083,155 2,393,198 (689,957.00) 1.31%
Fire 22,004,081 20,184,171 (1,819,910.00) 11.06%
Police 41,083,298 34,298,494 (6,784,804.00) 18.79%
Public Works 14,652,794 14,230,918 (421,876.00) 7.80%
Housing & Economic Dev. 471,243 345,063 (126,180.00) 0.19%
Inspections 1,909,876 1,811,230 (98,646.00) 0.99%
Recreation NR & Culture 1,784,644 1,234,172 (550,472.00) 0.68%
Municipal Court 2,755,909 2,736,232 (19,677.00) 1.50%
Workers Compensation 3,296,092.00 3,582,584.00 286,492.00 1.96%
Group Health, Prescription & Dental 24,964,460.00 26,120,520.00 1,156,060.00 14.31%
Other Employee Benefits 172,200.00 159,200.00 (13,000.00) 0.09%
Unemployment Fund 1,901,970.00 2,691,969.00 789,999.00 1.47%
Liability Insurance 183,345.00 1,578,345.00 1,395,000.00 0.86%
Utilities & Central Accounts 6,933,200.00 7,074,000.00 140,800.00 3.87%
Salary Increase & Sick Pay 1,093,727.00 1,755,965.50 662,238.50 0.96%
Pension & Social Security 20,041,266.00 20,354,115.00 312,849.00 11.15%
Library 2,100,000.00 2,000,000.00 (100,000.00) 1.10%
Grants/Grant Match 21,098,308.00 1,787,076.00 (19,311,232.00) 0.98%
Deferred Charges - 1,158,586.97 1,158,586.97 0.63%
Municipal Debt Service 19,820,121.83 21,227,437.60 1,407,315.77 11.63%
School Debt Service 5,825,867.05 6,020,501.25 194,634.20 3.30%
Reserve for Uncollected Tax 2,665,626.37 2,097,905.62 (567,720.75) 1.15%
Total Appropriations 205,467,742.25 182,557,393.94 (22,910,348.31) 100.00%
10
FY 2012 Appropriations
Municipal Debt Service
11.6%
School Debt Service
3.3% Reserve for Uncollected Tax
Deferred Charges
1.1%
0.6%
Grants/Grant Match
1.0%
Pension & Social Security
11.1%
Salary Increase & Sick Pay
1.0%
Department Operating
47.6%
Utilities & Central Accounts
3.9%
Workers Compensation
2.0%
Liability Insurance Group Health, Prescription &
0.9% Unemployment Fund Dental
1.5% 14.3%
Other Employee Benefits
0.1%
11
Department Spending
• Department operating budgets, including
the library total $87 million - $10.5 million
less than FY 2011
• Over two year period operating budgets
are down from $106.3 million in FY 2010 -
$19.3 million less over two years
• Portion of this decrease is due to SAFER
grant which reduced City costs for Fire
Department
12
FY 2012 Departmental Budget
Final Proposed Variance
APPROPRIATIONS FY 2011 Budget FY 2012 Budget 2012 vs 2011
Mayor's Office 711,838.00 661,377.00 (50,461.00)
City Council & City Clerk 482,001.00 533,385.00 51,384.00
Administration 2,687,933.00 2,632,020.00 (55,913.00)
Finance 1,893,988.00 1,798,493.00 (95,495.00)
Law 1,850,799.00 2,090,435.00 239,636.00
Health & Human Services 3,083,155.00 2,393,198.00 (689,957.00)
Fire 22,004,081.00 20,184,171.00 (1,819,910.00)
Police 41,083,298.00 34,298,494.00 (6,784,804.00)
Public Works 14,652,794.00 14,230,918.00 (421,876.00)
Housing & Economic Dev. 471,243.00 345,063.00 (126,180.00)
Inspections 1,909,876.00 1,811,230.00 (98,646.00)
Recreation, NR &Culture 1,784,644.00 1,234,172.00 (550,472.00)
Municipal Court 2,755,909.00 2,736,232.00 (19,677.00)
Library 2,100,000.00 2,000,000.00 (100,000.00)
Total Departmental Budget 97,471,559.00 86,949,188.00 (10,522,371.00)
13
3 Year Departmental Budget Comparision
120
FY 2010 Budget, FY 2012 Budget,
FY 2011 Budget,
$106.3 $86.9
$97.5
100
80
Millions
60
40
20
0
Budget Year
14
Non-Departmental Expenditures
• Budget increases are still being driven by employee
benefits, contractual obligations, unemployment and
debt service
• Pension and Social Security will increase by $300,000
• Employee health benefits will increase by $1.1 million
• Municipal and School debt service will increase by $1.6
million
• Unemployment costs will increase by $800,000
• Budget will appropriate $1.0 million for the “deferred
charge” related to the State aid that was included in the
FY 2001 budget and never provided to the City
15
NON-DEPARTMENTAL EXPENDITURES
Non-Departmental Expenditures FY 2011 Budget FY 2012 Budget 2012 vs 2011
Workers Compensation 3,296,092.00 3,582,584.00 286,492.00
Group Health, Prescription & Dental 25,136,660.00 26,279,720.00 1,143,060.00
Unemployment Fund 1,901,970.00 2,691,969.00 789,999.00
Liability Insurance 183,345.00 1,578,345.00 1,395,000.00
Utilities & Central Accounts 6,933,200.00 7,074,000.00 140,800.00
Salary Increase & Sick Pay 1,093,727.00 1,755,965.50 662,238.50
Pension & Social Security 20,041,266.00 20,354,115.00 312,849.00
Deferred Charges - 1,158,586.97 1,158,586.97
Municipal Debt Service 19,820,121.83 21,227,437.60 1,407,315.77
School Debt Service 5,825,867.05 6,020,501.25 194,634.20
Grant/Grant Match 21,098,308.00 1,787,076.00 (19,311,232.00)
Reserve for Uncollected Tax 2,665,626.37 2,097,905.62 (567,720.75)
Total Non-Departmental Expenditures 107,996,183.25 95,608,205.94 (12,387,977.31)
16
Reduction in Employees
• Overall City workforce will total 998 in FY
2012 - reduction of 143 from 1,141 FY
2011 level and reduction of 341 from
1,339 FY 2010 level
17
Reduction in Employees
• Overall salary and wages will total $72
million – decrease of $10.3 million from FY
2011
• Decrease is due to September 16th layoff
which provides a net savings of over $5
million in FY 2012
• Savings from layoff increases to $8 million
to $10 million in FY 2013
18
Authorized Positions Comparision
FY 2010, FY 2011, FY 2012
1,600
FY 2010, 1,339
1,400
FY 2011, 1,141
1,200
FY 2012 , 979
1,000
800
600
400
200
-
1
Budget Year
19
Tax Impact of Budget
• Total municipal tax rate will increase from
$3.63 in FY 2011 to $3.70 in FY 2011
• Represents an increase of 7 cents, or
1.93%
• Municipal tax rate will increase from $3.53
to $3.59 – increase of 1.4%
• Type 1 school tax rate will increase from
$0.09 to $0.11
20
Tax Rate Calculation
10/28/2011
Increase in Muncipal &
Assessed value FY 2011 FY 2012 Type I School Tax
$ 3.63 $ 3.70 $ 0.07
1.93%
$50,000 $ 1,815.00 $ 1,850.00 $ 35.00
$62,800 $ 2,279.64 $ 2,323.60 $ 43.96
$75,000 $ 2,722.50 $ 2,775.00 $ 52.50
$100,000 $ 3,630.00 $ 3,700.00 $ 70.00
$125,000 $ 4,537.50 $ 4,625.00 $ 87.50
Assessed value FY 2011 (county, school, city) FY 2012 (county, school, city) Increase in Total Tax
$ 5.478 $ 5.548 $ 0.07
1.28%
$50,000 $ 2,739.00 $ 2,774.00 $ 35.00
$62,800 $ 3,440.18 $ 3,484.14 $ 43.96
$75,000 $ 4,108.50 $ 4,161.00 $ 52.50
$100,000 $ 5,478.00 $ 5,548.00 $ 70.00
$125,000 $ 6,847.50 $ 6,935.00 $ 87.50
21
Conclusion
• Budget presented for introduction reflects the
Administration’s attempt to meet the needs of
the City while maintaining a minimal tax increase
• As economy continues to flounder and State Aid
is reduced the City must continue to reduce
expenditures
• Council now has the opportunity to propose
changes to the budget
• The Administration will work with the Council
and DCA to have a budget adopted as soon as
reasonable
22
APPENDIX
23
Municipal Tax Levy
FY 09 – FY 12
80
$70.1 $71.1
70 $65.1
60
$53.0
50
Millions
40
30
20
10
0 FY 2009 FY 2010 FY 2011 FY 2012
24
FY2012 DEPARTMENTAL BUDGETS
Housing & Economic
Dev.
Public Works 0.4%
16.4%
Inspections
2.1% Recreation
NR &
Police Culture
39.4% 1.7%
Municipal
Court
3.1%
Library
2.3%
Mayor's Office
0.8%
Fire
23.2% City Council &
City Clerk
Finance
Health & Human Administration 0.6%
Law 2.1%
Services 3.0%
2.4%
3.1%
25
FY 2012 NON-DEPARTMENTAL EXPENDITURES
Reserve for Uncollected
Tax Workers Compensation
School Debt Service 2.2% 3.8%
6.4%
Group Health, Prescription
Municipal Debt Service
& Dental
22.6%
28.0%
Unemployment Fund
2.9%
Deferred Charges/Loan
Reserves Liability Insurance
1.2% 1.7%
Salary Increase & Sick
Pension & Social Security Pay Utilities & Central
21.7% 1.9% Accounts
7.5%
26
FY 2012 Authorized Positions
Municipal Court City Council & City Clerk
5% 1% Finance
2%
Mayor's Office
Recreation, NR &Culture Administration Law
1%
1% 2% 1%
Inspections
3%
Health & Human Services
Housing & Economic Dev. 4%
2%
Fire
24%
Public Works
14%
Police (including Crossing
Guards)
40%
27
3 Year Budget History
Final Final Propos e d
Re ve nue s FY 2010 Budge t FY 2011 Budge t FY 2012 Budge t
Surplus - -
Trans itional Aid 34,900,000.00 27,100,000.00 22,000,000.00
CM PTRA 41,485,412.00 21,144,644.00 20,306,834.00
Ene rgy Re ce ipt Tax (& s upp.) 10,067,896.00 22,959,211.00 23,797,021.00
M unicipal Prope rty Tax As s is tance - -
Building Aid Allow ance 1,163,477.00 2,130,596.00 2,077,134.00
Le gis lative M unicipal Block Grant - -
Garde n State Trus t & Wate rs he d 3,502.00 705.00 705.00
PILOT - State 10,886,308.33 15,044,867.85 15,100,239.39
PILOT - Com m e rcial 3,726,165.97 3,526,124.19 3,727,922.98
Local Re ve nue s 20,796,521.79 20,149,225.80 20,103,579.60
Grant 25,333,347.00 20,818,695.00 1,787,076.00
Taxe s - M unicipal Purpos e 65,064,469.50 70,071,609.22 71,132,214.18
Taxe s - Type I School Tax 962,562.08 1,858,676.05 2,101,492.25
Taxe s - De linque nt 521,937.00 663,388.14 423,175.54
Total Re ve nue s 214,911,598.67 205,467,742.25 182,557,393.94
Final Final Propos e d
APPROPRIATIONS FY 2010 Budge t FY 2011 Budge t FY 2012 Budge t
M ayor's Office 679,764.00 711,838.00 661,377.00
City Council & City Cle rk 729,188.00 482,001.00 533,385.00
Adm inis tration 3,282,044.00 2,687,933.00 2,632,020.00
Finance 1,756,687.00 1,893,988.00 1,798,493.00
Law 1,325,886.00 1,850,799.00 2,090,435.00
He alth & Hum an Se rvice s 3,949,149.00 3,083,155.00 2,393,198.00
Fire 22,276,040.00 22,004,081.00 20,184,171.00
Police 43,847,827.00 41,083,298.00 34,298,494.00
Public Work s 15,884,114.00 14,652,794.00 14,230,918.00
Hous ing & Econom ic De v. 708,349.00 471,243.00 345,063.00
Ins pe ctions 2,319,195.00 1,909,876.00 1,811,230.00
Re cre ation, NR &Culture 3,466,042.00 1,784,644.00 1,234,172.00
M unicipal Court 2,929,572.00 2,755,909.00 2,736,232.00
Work e rs Com pe ns ation 3,723,327.00 3,296,092.00 3,582,584.00
Group He alth, Pre s cription & De ntal 24,897,799.00 24,964,460.00 26,120,520.00
Othe r Em ploye e Be ne fits 188,000.00 172,200.00 159,200.00
Une m ploym e nt Fund 800,000.00 1,901,970.00 2,691,969.00
Liability Ins urance 108,362.00 183,345.00 1,578,345.00
Utilitie s & Ce ntral Accounts 7,036,700.00 6,933,200.00 7,074,000.00
Salary Incre as e & Sick Pay 40,780.00 1,093,727.00 1,755,965.50
Pe ns ion & Social Se curity 17,863,850.00 20,041,266.00 20,354,115.00
Library 3,143,911.00 2,100,000.00 2,000,000.00
Grants 25,333,347.00 20,818,695.00 1,787,076.00
Grant M atch 287,154.00 279,613.00 -
De fe rre d Charge s /Loan Re s e rve s 1,504,534.00 - 1,158,586.97
M unicipal De bt Se rvice 21,024,574.25 19,820,121.83 21,227,437.60
School De bt Se rvice 3,958,429.08 5,825,867.05 6,020,501.25
Re s e rve for Uncolle cte d Tax 1,846,974.34 2,665,626.37 2,097,905.62
28
Total Appropriations 214,911,598.67 205,467,742.25 182,557,393.94
5 Year Revenue History
FY 2008 - FY 2012 with Yearly Variances
Final Final Var% Final Var% Final Var% Final Var% Introduced Var%
Revenues FY 2007 Budget FY 2008 Budget FY07 v FY08 FY 2009 Budget FY08 v FY09 FY 2010 Budget FY09 v FY10 FY 2011 Budget FY10 v FY11 FY 2012 Budget FY11 v FY12
Surplus 6,000,000.00 2,300,000.00 -62% - -100% - 0% - 0% - 0%
Capital City/
Transitional Aid 20,500,000.00 37,500,000.00 83% 32,040,000.00 -15% 34,900,000.00 9% 27,100,000.00 -22% 24,000,000.00 -11%
Mun. Homeland
Security Asst. 140,000.00 140,000.00 0% - -100% - 0% - 0% - 0%
CMPTRA 47,641,716.00 47,365,361.00 -1% 44,940,491.00 -5% 41,485,412.00 -8% 21,144,644.00 -49% 20,306,834.00 -4%
Energy Receipt
Tax (& supp.) 5,024,629.00 5,300,984.00 6% 6,612,817.00 25% 10,067,896.00 52% 22,959,211.00 128% 23,797,021.00 4%
Municipal
Property Tax
Assistance - 1,057,259.00 105725800% - -100% - 0% - 0% - 0%
Building Aid
Allow ance 886,066.00 1,454,859.00 64% 1,444,535.00 -1% 1,163,477.00 -19% 2,130,596.00 83% 2,077,134.00 -3%
Legislative
Municipal Block
Grant 388,012.00 388,012.00 0% - -100% - 0% - 0% - 0%
Garden State
Trust &
Watershed 1,319.00 1,280.00 -3% 3,601.00 181% 3,502.00 -3% 705.00 -80% 705.00 0%
PILOT - State 9,886,048.00 10,072,211.00 2% 10,164,777.40 1% 10,886,308.33 7% 15,044,867.85 38% 15,100,239.39 0%
PILOT -
Commercial 3,502,543.00 3,564,630.00 2% 3,623,589.86 2% 3,726,165.97 3% 3,526,124.19 -5% 3,727,922.98 6%
Local Revenues 34,904,943.00 33,632,079.00 -4% 29,318,436.08 -13% 20,796,521.79 -29% 20,149,225.80 -3% 19,775,366.88 -2%
Grant 3,744,657.00 3,939,491.71 5% 7,210,507.00 83% 25,333,347.00 251% 20,818,695.00 -18% 2,087,076.00 -90%
Taxes - Current
(incl. Type I
School) 45,390,607.00 48,160,821.50 6% 53,915,099.01 12% 66,027,031.58 22% 71,930,285.27 9% 73,966,429.74 3%
Taxes -
Delinquent 1,890,729.00 1,260,996.00 -33% 800,000.00 -37% 521,937.00 -35% 663,388.14 27% 423,175.54 -36%
Total Revenues 179,901,269.00 196,137,984.21 9% 190,073,853.35 -3% 214,911,598.67 13% 205,467,742.25 -4% 185,261,904.53 -10%
29