TOWNSHIP OF JACKSONEXPLANATORY STATEMENT - (Continued) BUDGET MESSAGE
"CAP" Calculation for C/Y 2009 Budget Message
Total General Appropriations for 200841,498,474.00Allowable Operating Appropriations within CAP34,814,732.39
CAP Base Adjustments:
PERS - 2009 Appropriations @ 100%604,218.00
PFRS - 2008 Appropriated / Paid & Charged1,583,645.002009 Proposed Appropriations - Within CAPs32,710,382.66
Defined Contribution Benefit (DCRP)-08-CAP Correction(5,000.00)
Net CAP Base Adjustments2,182,863.00Net CAP Balance Before Banking Utilization2,104,349.73
SUBTOTAL-2008 Amended Appropriations for CAP Adjustments43,681,337.00Apply 2007 CAP Banking Available for 2009 Budget1,845,163.66
Less Exceptions-Operations Excluded from CAPs:Apply 2008 CAP Banking Available for 2009 Budget835,284.95
Gypsy Moth & Mosquito Control(27,950.48)
Police Dispatch/911-Salaries & Wages / Other Expenses(122,220.00)Net CAP Banking Available for 2009 Budget4,784,798.34
PERS/PFRS & DCRP(2,020,840.20)
Recycling Tonnage Tax(12,000.00)
Interlocal Services-MUA Sewer & Water Services- (85,000.00)MEMO - CAP BANK CALCULATION ANALYSIS:
Interlocal Services-Ocean County, Relocation Assistance(10,000.00)2009 Favorable CAP Variance for banking (see above)4,784,798.34
LOSAP (Length of Service Award Program)(23,100.00)TOTAL CAP BANKING4,784,798.34
Supplemental Fire Services Program(16,904.00)
Public & Private Programs Offset by Revenues(805,424.21)Chapter 89, Public Laws of 1990 places limits on Municipal spending authority.
Total Capital Improvements(200,000.00)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
Municipal Debt Service(4,041,775.00)
Deferred Charges(350,000.00)(E.G.-Debt Service, Grants, Inter-Gov't Contracts, & Uncollectible Tax Reserve).
Reserve for Uncollected Taxes(2,620,000.00)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(10,335,213.89)
Amount on Which CAP is Applied33,346,123.11A 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 2.5% 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 Rate2.50%33,346,123.11
Allowable CAP Index Ordinance1.00%333,653.08
Allowable Operating Appropriations before Additions/Exceptions34,513,237.42
Add-On Ratables for New Construction - Assessed Valuation X Tax Rate
37,971,659.000.7940301,494.97
Allowable Operating Appropriations
within CAP34,814,732.39
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.)