EXPLANATORY STATEMENT - (Continued)

TOWNSHIP OF JACKSON

"CAP" Calculation for C/Y 2010 Budget Message

Total General Appropriations for 2009 40,575,652.00 Allowable Operating Appropriations within CAP 33,877,953.80

Gypsy Moth & Mosquito Control (18,850.00)

Police Dispatch/911-Salaries & Wages / Other Expenses (142,261.00) Net CAP Banking Available for 2009 Budget 4,846,016.32

Recycling Tonnage Tax (12,000.00)

Interlocal Services-MUA Sewer & Water Services (7,000.00)

Interlocal Services-Ocean County, Relocation Assistance (10,000.00) MEMO - CAP BANK CALCULATION ANALYSIS:

LOSAP (Length of Service Award Program) (26,000.00) 2009 Favorable CAP Variance for banking (see above) 4,846,016.32

Supplemental Fire Services Program (16,904.00) TOTAL CAP BANKING 4,846,016.32

Public & Private Programs Offset by Revenues (239,623.32)

Municipal Debt Service (4,322,831.45) Chapter 89, Public Laws of 1990 places limits on Municipal spending authority.

Deferred Charges (475,000.00) Commonly referred as to the CAP LAW, a growth restriction is imposed based upon an annual inflation limit on most appropriations noting limited exclusions exist

2010 Proposed Appropriations - Within CAPs 32,056,947.06

Net CAP Balance Before Banking Utilization 1,821,006.74

SUBTOTAL-2009 Amended Appropriations for CAP Adjustments 40,575,652.00 Apply 2008 CAP Banking Available for 2010 Budget 835,284.95

Less Exceptions-Operations Excluded from CAPs: Apply 2009 CAP Banking Available for 2010 Budget 2,189,724.63

Reserve for Uncollected Taxes (2,675,000.00) (E.G.-Debt Service, Grants, Inter-Gov't Contracts, & Uncollectible Tax Reserve). A set State index rate can be increased to a maximum of 3.5% at the discretion of the Governing Body by ordinance of each respective Municipality.

Total Exceptions (7,945,469.77)

Amount on Which CAP is Applied 32,630,182.23 A review of the enclosed calculation reflects last year CAP as a basis for the 2009 budget period. Taking last years total budget and removing the exceptions, a calculation of 0.0% is computed for the annual inflation adjustment. Consideration is given to Municipalities experiencing significant growth by permitting a adjustment for new construction placed on the tax rolls as shown to the left. An allowance is also permitted for unconsumed CAP adjustments by allowing a 2-year banking of CAP credits for good management.

Allowable CAP Index Ordinance 3.50% 1,142,056.38

Allowable Operating Appropriations before Additions/Exceptions 33,772,238.61

Add-On Ratables for New Construction - Assessed Valuation X Tax Rate

Allowable CAP Rate 0.00% -

29,203,090.00 0.3620 105,715.19

Allowable Operating Appropriations within CAP 33,877,953.80

Sheet 3b

NOTE:

MANDATORY MINIMUM BUDGET MESSAGE MUST INCLUDE A SUMMARY OF:

1. HOW THE LEVY AND APPROPRIATION "CAP" WAS CALCULATED. (Explain in words what the "CAPS" mean and show figures.)

2. 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.)

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