EXPLANATORY STATEMENT - (Continued)
BUDGET MESSAGE
Property Tax Levy Cap Calculation 2009:PROPERTY TAX LEVY CAP
Prior Year Amount to be Raised by Taxation$23,661,969Chapter 62, Public Laws 2007 places a 4% limit on the amount the municipality can increase its tax levy.
Less: Prior Year Recycling Tax12,000
Less: Prior Year Capital Improvement Fund200,000The tax levy cap calculation is subject to various exclusions such as changes in debt service, State Aid formula loss, Certain Pension increases, Capital Improvement Fund Appropriations and various other exclusions. The law also allows for various adjustments such as the value of new ratables. Additionally, the law allows for waivers as approved by the Local Finance Board. If a waiver application is rejected the municipality may put those waiver items to referendum.
Net Prior Year Tax Levy for Municipal Purpose Tax for Cap Calculation23,449,969
Plus: 4% Cap Increase937,999
Adjusted Tax Levy Prior to Exclusions24,387,968
Exclusions:The calculation on this page demonstrates the Borough's compliance with the property tax levy cap law.
Changes in Debt Service and county leases(123,726)
Offsets to State formula aid loss105,117
Allowable Pension Increases172,023
Recycling Tax Appropriation12,000
Capital Improvement Fund100,000
Add Total Exclusions265,414
Less Cancelled Exclusions319,432
Adjusted Tax Levy24,333,950
Additions:
New Ratable Adjustment to Levy301,115
Maximum Allowable Amount to be Raised by Taxation$24,635,065
Amount to be Raised by Taxation for Municipal Purposes$24,634,167
Sheet 3b-1
NOTE:
MANDATORY MINIMUM BUDGET MESSAGE MUST INCLUDE A SUMMARY OF:
HOW THE "CAP" WAS CALCULATED. (Explain in words what the "CAPS" mean and show figures)
A SUMMARY BY FUNCTION OF THE APPROPRIATIONS THAT ARE SPREAD AMONG MORE THAN ONE OFFICIAL LINE ITEM
(e.g. If Police S&W appears in the regular section and also under "Operations Excluded from "CAPS" section, combine the figures for purposes of citizen understanding.) (See Management Section of Budget Manual)