[Music] Hi, I'm Council President Mary Sohor. Welcome to Council Corner. Our mission is to bring you valuable information about our town, helping you make the
most of everything Oldbridge has to offer. From food and recreation to shopping, Oldbridge truly has it all. Join us and discover the unique experiences waiting for you here. And I'm council vice president Nita
Greenberg Bellite. At 42 square miles, is home to a variety of hidden gems that you may not have explored yet. Whether it's the beautiful parks, delightful restaurants, bustling businesses and shops, we'll make help you discover everything that makes our hometown truly
special. And we'll help keep you updated on the latest events and important issues happening around town. Today we have a special guest. Her name is Dawn Fabota and Dawn is our CFO for Oldbridge Township. Welcome, Dawn. It's so nice to have you here with us today. Thank you
for having Thank you for joining us. Yeah, we really appreciate you taking the time. So, um, first of all, what is the budget development process? Can you give us a little overview? Sure. The budget development process, it's really it's an eight-month process for the
departments, but it's really a 12-month process for the finance department. We're continuously working on the budget. In August each year, a memo goes out to department heads asking for their budget requests and it gives them guidelines and they're able to, you know, they have about a month to submit
their requests into us. And then in October, we hold a first round of meetings with the departments where they're able to justify their requests and, you know, give us any other pertinent information we would need. Then come January after the end of the
year, we hold a second round of meetings with the departments, you know, to go over make any cuts, see if anything has changed, you know, additional needs they might need. And then we look to introduce the budget sometime in February. And then once we introduce the
budget, uh there's certain, you know, requirements we need. We need to advertise in the newspaper. Um we do hold uh council budget subcommittee meetings. There's usually three of those. um they're open to the public and in those meetings as
you know we go line by line through that's the term every every budget item very helpful in detail so it is you know if anybody has any questions at that point that's the time to ask and then we hold the public hearing and look to
adopt sometime late March early April depending on the council meeting schedule yeah so that's a long process it's not something that's done overnight it takes a lot of time and a lot of effort. It's a lot of time. And then literally the day after we adopted the
budget, start with the next one, you know, we roll over. It's so exciting. It's so Well, it's a process, that's for sure. And it is it's a big process. Well, it's important to get all the input from all the heads of department
and really takes them time to go over see what they need and things are always changing too. So, and we really need to look at it. You know, obviously the departments are concerned about their department needs, but you know, administration and finance really needs to look at it from the overall township
standpoint of, you know, obviously public safety is one of the main, you know, employees. Yeah. The top concern. It's a lot. Public works, maintenance of roads, snow removal, you know. Yeah. There's a lot to be considered. There
really is. You know, Yeah. People don't realize how much is involved. For sure. Yeah, you know, till you get down to it like line by line that we do. But those those budget meetings are very, you know, good too because they give you a chance to really understand what the budget is all about, how, you know, how
the money is spent, so to speak, and like you said, where all the money goes. And sometimes that's I think that's great because people just hear numbers and sometimes they're large and it's like, oh. And then you you start to drill down and see what the costs are of
various you know departments like public safety which is totally necessary but you see where there is um you know money involved in here a good amount so that I think that's good right and especially how cost of everything just keeps on
going up to keep it within you know a manner that everyone can afford and um so it is it's quite involved you balance it's between the taxpayer and the and the township, you know, the administration and and the workers at town. And that is a balance because you
have to look at both sides and try to come up with something that, you know, is fair for everybody to to live with, you know. Yes. And obviously some items are discretionary, but there are a lot of big items that are mandatory. Yeah. mandatory and things that take priority
and you know especially in the police department whether it's equipment different technology that they need all the time things are changing constantly so many expenses right true you know insurance went very very high again that's another yes another very
expensive item and I think it's good that you let the public attend because if there are people out there that you know think maybe what is going on or how come things are you know getting more expensive. You can see it for yourself and you can ask any questions. The
process is very transparent. I mean we have a budget book I think in the library that you put one there too for them to to look at. So once we introduce the budget and we present it to council at the meeting then it becomes public so to say. So uh there's a copy available
in the library down at the clerk's office the finance office. It's also posted online within a few days on the township website. makes it very easy for anyone who truly would like to look at it to do so. Yes. And then ask questions at the public hearing. They're more than
welcome to attend. Yes. And ask whatever question they feel, you know, or even come to the budget uh council budget subcommittee meeting. Exactly. Everything is open to the public. That's another good thing. Definitely. How is the municipal budget funded? Well, the
municipal budget is funded through various revenue sources. Obviously um the tax levy is the largest portion um for 2025 uh the municipal tax levy is about 38.6 million which is 52.66% of the budget. So obviously that
is the largest chunk of revenues million share um the second largest is surplus anticipated from fund balance. This year we were able to anticipate 13 million which is um 17.72% of our budget. Um it
we did increase it about one and a half million from last year. Um but we were still able to you know keep our cash reserve um in the surplus in case of emergency. Well, that's another thing. You have to be sure that if, god forbid,
something goes sideways, you do have the ability to fund the necessities that you need to do. Yes, we do always try to take a conservative approach with revenues. I like that. Um, there's certain revenues that if you look at in the budget, um, for instance, interest on investments. Um, we have been doing
very well with that. Um, last year, I know our actual revenue was over 1 million. we had budgeted 350,000 this year I believe we upped it to 550,000 some people would look and say why don't you go up to a million or but
fluctuations we know it happened in in 2020 same thing I had increased it and then interest rates dropped but luckily the first three months of the year were able to kind of carry us and we met or we were very close to so we always try and
keep that conservative revenue approach I think that's what's giving giving us the good bond ratings and good, you know, good audit. We don't do that. You don't go right out to the very limit of what you you know. Yes, it it definitely helps with our bond rating. That's why we have a a double A1 and having a good bond
rating allows us to go out when we need to borrow money at a lower interest and that helps and it actually helps with the municipal utility authority to also. Yes. So, it really has many benefits which is good. No, it's that's that's a very good approach. Yes, another big
portion of our revenues is state aid, which um this year we received 6.3 million which is about 8.65% of our budget. Now in 22 and 23 the state had given out um municipal relief fund. It was like an additional state aid money
that I believe was from COVID funds. In 23 we received 650,000 which we were able to anticipate in 24. When I worked with Hamanchu Sha, the former business administrator and CFO, Hamanchu and I were saying back then, you know, this is
probably a one-time thing. They did it for two years and then that's gone away now. So, that was a little bit of a challenge in this year's budget because we had that $650,000 hole. Yeah. And with the state aid, that's been pretty stable for many years now, hasn't it? Yes. It's been
relatively flat since 2011. Well, that's unfortunate, too, when you think everything else has gone up. Why? Why? Yeah. I mean, they gave us a slight increase, but I think if it equated to about 1% over the last three years, yet a lot of mandates have come about that are, you know, unfunded mandates, right,
that need funding and it's hard to continue on with funding everything and and still keep hold on, you know, on on taxes for the for the residents of the town. Yeah. So, those are pretty much those are our three main revenue sources
um or three largest, I should say. the remainder, which makes up about 20% of the budget, uniform construction code fees for permits for buildings, things like that, code enforcement fees, um, municipal court, local revenue, various
fees, licenses, permits that the departments collect, interest on investment, also um, interest on delinquent taxes and, um, grants. Grants is kind of one that fluctuates yeartoyear. We have certain grants that we receive every single year. They're
relatively the same amount, but sometimes we get a larger grant that may, if you're looking at the budget, might, you know, kind of skew the numbers a little bit there. For instance, in 2024, we received a police technology grant of 1.3 million. And
that's not something that'll be every consistent. We were very lucky to receive that. Yeah. Well, I think we do a great, you know, town does a great job with the grant writing, too. Now, we have this new Yes. We hired um Millennium Strategies um a few about
three or four years back and they have been phenomenal in you know um sending us grant opportunities that we never would have been able to find ourselves or even helping us with the application process because that's what they do. Well, that's great. They have I mean
I've seen so many grants now that we've received and that really does help. Yes. You know with the Yeah, it helps in all the departments too. Like you said, there may be grant out there that you're not familiar with, but having them, they have the knowledge and the wherewithal to go after it. So, that's good. Yes.
And even if we know we have a certain need or we're looking for a certain type of grant, we'll let them know. And even if they don't know of anything right away, they'll keep a lookout for it. Yeah, that's it. That's so It's so interesting. Well, we're going to take a a little break right now. We'll return
soon with our CFO, Joan Fabota. Thank you for calling the National Problem Gambling Helpline. How can I help? So glad you can make it. [Music] Have you ever helped a fellow veteran. Of course. Yes. Have you ever asked for
help yourself? Uhhuh. It's always tough, right? I always feel like I can solve my own problems, but eventually, you know, you just can't deal with it on your own. And you start to question maybe people would be better off without me. When you realize that you're not alone
once you take that first step, there's so much support. For decades, I've taught you everything I know, how to safely build a fire, and how to control the flames. But I can only teach wildfire
prevention. Only you can prevent wildfires. [Music] And we're back with our special guest, Doran Spabota. Great to have you here, Doran. This has been such a greatformational time for us and I think
for the public. I think everyone really will be interested in knowing all of this information. Our next question is, what is the budget for 2025 and how does it compare to the 2024 budget? Well, the total budget for 2025
including municipal library portion is 73,382,373. So this is a total budget increase of about $892,000 or 1.23% 23% over the 2024 budget as mod
modified. And when we say as modified, once we adopt the budget, obviously there's eight or nine months left during the year and certain things happen. We do get additional grants as we saw on Tuesday night's meeting. We already had four chapter 159 resolutions. Um so
those can get added. the state allows you to add them to the budget through that chapter 159 um statute. Um the other thing would be if there's an emergency appropriation. So sometimes things come up. A few years ago, you
know, gasoline prices spiked, so we needed to do an emergency appropriation for gasoline. Um, this year though, when we compared 2025 and 2024 numbers, we did not include that $7 million emergency we had last year for the
national settlement because that would obviously very skew the numbers. So, if somebody's looking at the budget and say, "Whoa, those aren't the numbers in the presentation or what she was discussing." Right. I did not include the 7 million as far as presentation.
Yeah. Well, that makes sense, though. That makes perfect sense. Hopefully just a one-time deal. Yes. Yeah. So, that was that that increase was considering everything that's been going on, a very minimal increase. Yes. And the municipal
tax rate for 2025 is estimated to be 1.030, which is an increase of 1.68% over 2024. So for the average home in Oldbridge assessed at $157,373, the increase would be $27 for
the municipal tax portion. Yeah. So that's that's very it's very significant when you hear that how really well try to keep things, you know, under control, keep keep spending and obviously we understand everybody's I'm the tax
collector as well. We do hear it when people come in to pay their taxes. You know, the cost of everything is going up. And unfortunately for the municipality, it's going up as well. I'm feeling the same thing. Well, that's it. And even though they do um now offer a tax, you know, for seniors a tax, I call
it reimbursement rather than freeze. It is a reimbursement. Yeah. So, even though but as it escalates, you have to pay that upfront. So, it's it's not that easy. you know, some some seniors it really is a big it's very difficult to
get that together. So, that's some of the things that we think about, you know, we're looking Yeah. at the whole town and you try to tell people, you know, that rebate, it's not it'll come back, but you have to put it out. So, be sure you dedicate, you know, your funds
accordingly, but it's it's we try to think of all groups of people in town, you know, to keep things on a relatively even keel. Yes. you know, so it's quite involved and you do your due diligence and explaining it. I hope people understand what's involved. One, we're a
big town and a lot of expenses throughout all the departments. Like you said, public safety is paramount and um with the cost of things go up that we you know, you know absorb it. It has to be spread out. Yes. Our our the public safety portion of the budget is probably
it's about 25% or one quarter of the total budget. Well, the benefits, the pers, pension, you know, all of that. Sure. When you factor Yeah. But I think that's why people come to the community. They want safety, you know, and I think they realize that that to them safety is
something that they don't, you know, they know we're not going to compromise on and they don't want to even being a municipality, we're very serviceoriented, right? And our the budget I want to say it's about 65% is goes towards employee costs,
salaries, um social security, pension, insurance. It's it's a big ticket, but that's what we do. I mean, you have the senior center, you have recreation, you have, like you said, it's all customerbased and all, you know, services and services are not
inexpensive. And I think also compared to other municipalities this size with the amount of employees we have we do a lot phenomenal lot. Yeah. No. No. And I really for the size of the town the population and you think 42 square miles
you know it's it's not easy to manage all that and so I think you know really all the departments are doing a great job. Yeah, that's why we always at the end of the, you know, the budget presentation thank all of you, you know, all the administration, all the departments for really working together
and really trying to think of the town as a whole and work together to make everything as best as possible with the least amount of taxation. I I give you a lot of credit. Really, it's a very very good job. And even with that, I mean, as
far as the workforce, I think they're very efficient. It's streamlined. I don't feel there's a lot of bloat there. I think they do get a lot accomplished with the manpower that we have, which is phenomenal. And um you know, things like I said, thing everything's going up and
you have to make sure that the your employees are well taken care of for the work that they do. You also have to plan for the future and that's a difficult you know it's kind of like with the crystal ball because things can happen like we say co you know then but things
can happen and it you have to be prepared they're depending everybody's depending on you the residents are depending on us to make sure that if something is wrong that we can survive this we can move on you know and be stronger from it and that's a lot to
have to keep in mind that's why the fund balance balance is so important and as you said that's why we get a good Moody's rating and um you know that really is like a cushion of protection for us. Yeah. And our calendar year is a little different too. So that's got to
be a little challenging since we're from January through you know what I mean and not the fiscal year July. So the the state's on a fiscal year, right? So certain things like the state even though we adopted our budget this and you know whenever the county adopts
their budget and the school and all that the state will not certify their tax levies until the state budget passes. So we're off it's not off we're in a different cycle. Yeah. So that makes it a little bit more. So it's always kind of a time crunch because the state usually goes down to the wire the end of
June to adopt their budget and then it's gotten better over the years with technology um because they need to get the certified levies to the county tax administrator and then they need to get us the certified rates so we could get the bills out which are supposed to go
out by July 15th. So right. So it's a time crunch but they you it's been a little bit better. Yeah. But it is that makes a difference too for you because you gota a lot of moving parts working together. Yeah, they definitely are. Oh my goodness gracious. What portion of
the overall tax rate funds the municipal budget? So the municipal tax levy is about 17% of the overall tax rate. And this 17% covers a majority of the municipal services that's provided to the residents of Oldbridge such as we
discussed public safety, um police, emergency management, um public works, maintenance of roads, snow removal, uh recycling, senior and health services, uh parks and facility maintenance, recreation programs, code
enforcement, the construction department, uh community development, which includes engineering, planning, zoning, as well as just the general administration offices, finance, tax collection, clerk, tax assessor. So, it
really does cover a lot in that 17%. Yeah, that's important for the residents to know as well. We keep trying to bring that point out to the public that it really is challenging given the amount of, you know, percentage that we receive to use for our, you know, for taxes.
When we say 17%, it really means 17 cents out of every dollar that like put in those terms people I hope realize that you know even if we're collecting it um we don't use all the money that's collected we have to still pay you know
whether it's school whether it's you know fire library you know everything like that. So, so the other the remaining 83% goes to fund the Old Bridge Board of Ed, the Old Bridge Public Library, Middle Sex County, Middle Sex County Open Space Fund, and
the um four fire districts, Lawrence Harbor, Cheesequake, South Oldbridge, and Madison Park. And by statute, the township collects all those taxes. So, you get one tax bill. on the tax bill, there's a breakdown of the rates, um
what goes to each uh taxing district, and then we have to pay over 100% of the levy to those districts. So even though the township never collects the full 100% of the tax levy, we still have to
pay them 100%. So when in reality, it's actually less than 17 on a dollar that we when you get down to when you get down to it. Plus our labors um our employees are doing the labor, collecting it, sending out the bills, etc. Managing the funds. So, you know,
then we're paying for that where everyone's not paying a portion to pay everyone's salary. Just the way it goes, I guess. Yeah, it is. And I mean, the county does take their fair share. So, we really the dollar is stretched very,
very thin. Thin. Yeah. And as I stated, I mean, we won't have a finalized tax rate until, right, um, sometime mid July and then that's when the tax bills usually go out and and that's when the phone calls come in. Phone calls come in and well, I guess when they go out a
little while this process takes a year that you're non-stop working. Yeah. It's always a work in progress. Finish one budget, you're on to the next. You know, it's never ending. No. So, what do you what are some of the challenges that you face in this year's budget? Um, well,
one of the biggest ones has been inflation. Um, while you know, it's gotten a little better than it was a few years back, it's still every the price of everything is going up. So, we need to even um as part of the, you know, well, in conjunction with the municipal
operating budget, we also do a capital budget, right? We're required to have in the budget kind of a six-year projection. Um, but we always introduce and adopt at the same time as the budget uh bond ordinances for, you know, general arena and parking. With
inflation, even with that, you know, if our departments are going out and getting quotes for equipment, you know, six months later, price could have went up. So, you know, we got to make sure we, you know, add a cushion in for that. Yeah, that's that budgeting and and like
it said crystal ball. You don't know what's going to happen and you have to be ready for it. So, you can't overly anticipate, you know, revenue. It's a good it's a good point. And then also, um, we do need to stay within two statutory caps that the state has, you
know, keeps us to. Um, one is the appropriation cap, which every year the state sets an amount up to two and a half percent that we're allowed to automatically increase. Then we can go up to three and a half% by doing a cap index ordinance, which we do. Um, in
prior years, it was really just kind of we do it the ordinance also helps you to bank any difference between the maximum amount for a, you know, a rainy day. This year we were only under the cap by
about $1,000. Wow. Because if you think of how much everything increases. Sure. Our recycling contract went up 39% starting April 1st. Um you would think they would not be able to give you such an increase without any notice to be
prepared. Like how do you prepare for that? We didn't we didn't find out until February, mid February. You know, 39%. You know, if you can imagine being in business if you raise the prices of things 39%. There would be such an outrage. I
just it's health insurance. It's incredible. Yeah. Health insurance just skyrocketed. It went insane. You know, it's so important and you know, and you know, you want to provide good health insurance for everyone, but it's really it's to a point like it's cost
prohibitive sometimes when you think of how where I don't know where it's going. That's it's very scary. And having to be the one to make sure that Sure. Yeah. All the money's in the coffers. Yeah. Then the um the second uh cap that were
kept to back in 2010, they initiated the property tax levy cap at 2%. Um there are certain exceptions to that for pension, health insurance, um capital debt, things like that, but um so that's a 2% cap. Well, I want to
compliment you on that. and you know for really staying within that 2% because like I said you want to do right by the residents and it's not an easy job that you have doing that for sure but you're doing it well. Yes. Um we also had this
year all nine collective bargaining units were up for negotiations at the end of 24. Um up you know to date we have settled those contracts. That's great too. So um but that was kind of a certain unknown to have to work into the
budget. Um I just mentioned the recycling contract 39% also both um health and liability insuranceances have gone up and then uh state aid I touched on it before the loss of that municipal
you know relief that was 650,000 and as well as the state aid just remaining flat for since 2011 pretty much. That's hard. It's not easy. Yeah, it is. It's hard and it it just takes time and patience
and a lot of hard work from everybody. Yes. Very difficult. Well, there's so many my goodness so many moving parts like Dr. Greenberg said about it and it's not an easy task, but thank you. Truly, I think it's great also to come here, spend some time with us. So truly
the township understands what we're facing, what you're dealing with on a daily basis and that we want to provide services to the town and keep taxes stable and down. Yes. Well, it was a pleasure having you here and thank you again for joining us. I hope everyone in
the public enjoyed meeting our CFO Dons Fabota and all the great information she had to share with us. This has been Council Corner. Thank you for watching.
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