EXPLANATORY STATEMENT - (Continued)

EXPLANATORY STATEMENT - (Continued)
BUDGET MESSAGE
Property Tax Levy Cap Calculation 2010:PROPERTY TAX LEVY CAP
Prior Year Amount to be Raised by Taxation$24,453,967Chapter 62, Public Laws 2007 places a 4% limit on the amount the municipality can increase its tax-levy.
Less: Prior Year Recycling Tax11,567The tax levy cap calculation is subject to various exclusions such as changes in debt service, State Aid formula loss, Certain Pension increases, Capital Improvements
Net Prior Year Tax Levy for Municipal Purpose Tax for Cap Calculation24,442,400Fund 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.
Plus: 4% Cap Increase977,696
Adjusted Tax Levy Prior to Exclusions25,420,096
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(289,077)
Allowable Pension Increases95,631
Allowable Increase in Health Care Costs357,050
Recycling Tax Appropriation12,000
Deferred Charges to Future Taxation Unfunded Capital Improvement Fund143
100,000
Add Total Exclusions275,747
Less Cancelled Exclusions7
Adjusted Tax Levy25,695,836
Additions:
New Ratable Adjustment to Levy105,569
Maximum Allowable Amount to be Raised by Taxation$25,801,405
Amount to be Raised by Taxation for Municipal Purposes$25,585,255

Sheet 3b-1

NOTE:

MANDATORY MINIMUM BUDGET MESSAGE MUST INCLUDE A SUMMARY OF:

  1. HOW THE "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.) (See Management Section of Budget Manual