| TERM |
EXPLANATION |
| General
Information (back
to top) |
| CENSUS PROFILE |
Internet links for detailed
demographic information for each municipality are provided to: 1)
the US Census “Quick Facts,” and 2) a detailed profile
of US Census data provided by the NJ State Data Center |
| FISCAL YEAR: |
The period for which a local
unit adopts a budget, pursuant to the Local Budget Law, N.J.S. 40A:4-1
et seq. Most municipalities and all counties operate under a calendar
(January through December) Fiscal Year; approximately 50 municipalities
operate on a State Fiscal Year (July through June). |
| FISCAL YEAR: |
New Jersey municipalities operate
on one of two fiscal years:Calendar year: The period beginning on
January 1 and ending on December 31.State Fiscal Year: The period
beginning on July 1 and ending on June 30 in any municipality in which
the Fiscal year has been changed to a state fiscal year. |
| FORM OF GOVERNMENT:
|
A municipality has a form of
government that falls into one of two broad categories: Statutory
or Optional. See this link for an explanation
of the variations. While the general powers of the government are
the same, the form varies as to number of elected officials, election
basis (partisan or non-partisan), way in which the Mayor is chosen
(election or appointment by governing body) |
| MUNICIPALITY: |
A municipal corporation (the
entire state is divided into 566 municipalities; there are no unincorporated
areas in New Jersey). The name of a New Jersey municipality (i.e.,
city, town, township, borough or village) does not indicate size,
population or form of government; all municipalities have similar
power and authority, varying mostly by the number of elected officials,
how they are elected, and the organizational structure of the corporation. |
| POPULATION: |
The State of New Jersey, Department
of Labor estimated population figures for the year of the report,
and the official 2000 Decennial Census of Population conducted by
the U.S. Department of Commerce, Bureau of the Census. |
| TERM |
EXPLANATION |
| Authorized
Capital Debt (back
to top) |
| ANNUAL DEBT STATEMENT: |
Sworn statement filed by the
chief financial officer of the local unit, pursuant to N.J.S. 40A:2-1
et seq., the Local Bond Law, attesting to the debt condition of the
local unit. This is the source of information for Table 2, Authorized
Capital Debt By Type. |
| CAPITAL DEBT: |
The long-term or short-term
indebtedness authorized by bond ordinance for expenditures of a capital
nature (see also Gross Debt and Net Debt).ISSUED AND OUTSTANDING:
Principal amount of all capital debt issued and unpaid at the end
of the fiscal year.AUTHORIZED AND NOT ISSUED: Principal amount of
all capital debt authorized and not issued as of the end of the fiscal
year. |
| DEBT LIMITATION/CAPACITY |
The statutory debt limit in
New Jersey is 3 1/2% for municipalities and 2% for counties, of the
municipality’s “state equalized valuation" averaged
over three years. Debt capacity is the difference between the debt
limit and net debt. |
| DEDUCTIONS (FROM
GROSS DEBT, TO CALCULATE NET DEBT): |
The Local Bond Law (N.J.S.A.
40A:2-1 et seq.) defines the methods for calculating the deductible
portion of gross capital debt. All school debt within the statutory
limit is deductible. All self-liquidating or utility debt is deductible
if the utility is self-sustaining. If the utility is not self-sustaining,
the operating deficit is capitalized at 5% and becomes a charge against
the debt limit of the municipality. The deductions from other debt
come about through funds on hand, accounts receivable, and similar
specific items allowable as deductions. Also bonds authorized by another
public body and guaranteed by the municipality are deductible. |
| EQUALIZED VALUE
(3 YEAR) |
The average of the three (3)
preceding years of the sum total of: (a) the aggregate equalized valuations
of real property as certified in the Table of Equalized Valuations
published by the Director of the Division of Taxation of the Department
of the Treasury on October 1, of each year; and (b) the assessed valuation
of Class II railroad property as set forth in the Table of Equalized
Valuations referred to in (a) above. |
| GROSS DEBT: |
Includes all bonds and notes
authorized or guaranteed by a local unit or a school district, whether
or not issued. Does not include tax anticipation notes, emergency
notes, special emergency notes, or utility revenue notes. |
| NET DEBT: |
The amount of authorized debt
remaining after statutory deductions are taken. The present law limits
the amount of net debt for municipalities to 3 1/2% of equalized valuation
basis for the sum of municipal and school debt. The present law limits
the amount of net debt for counties to 2% of equalized valuation basis. |
| PER CAPITA FIGURES: |
Computations are based upon
the estimated population for the report year. Care should be taken
in using these figures for comparative purposes, since all services
included are not necessarily provided to the residential population
for the report year. |
| SELF-LIQUIDATING
DEBT |
Debt of a utility operation
where its revenues equal its appropriations every year (self-sustaining)
without a subsidy from the parent government. |
| TERM |
EXPLANATION |
| Classification
of Debt Authorized (back
to top) |
| BOND ORDINANCE: |
An ordinance adopted by the
governing body of the local unit providing for the authorization of
bonded indebtedness and repayment obligations under N.J.S. 40A:2-1
et seq., (the Local Bond Law). |
| CLASSIFICATION
OF DEBT |
A listing by major category
of capital debt authorized during the year. It is NOT a cumulative
list of all debt issued. |
| MUNICIPAL UTILITY: |
An agency created to perform
specific functions within a municipal, county, or regional area. Operations
are separate and distinct from the local unit, but not autonomous
with respect to it. Municipal utilities in New Jersey: water, sewer,
airport, beach, water and sewer, harbor, electric, parking, swimming
pool, country club, golf course, park, recreation, sanitation and
transfer station. |
| TERM |
EXPLANATION |
| Tax
Rate and Levy Information (back
to top) |
| (COUNTY) HEALTH
TAXES: |
The amount paid by a municipality
that receives services from a county health department for the municipality’s
share of the health department’s tax levy as apportioned by
the County Board of Taxation. |
| (COUNTY) LIBRARY
TAXES: |
The amount paid by a municipality
that participates in a county library system for the municipality’s
share of the library system’s tax levy as apportioned by the
County Board of Taxation. |
| ABSTRACT OF RATABLES |
The official report published
each year by each county Board of Taxation. The Abstract lists taxable
value breakdowns, county equalization and apportionment of county
taxes data, tax levies for public school and municipal purposes, miscellaneous
municipal revenues, breakdown of tax-exempt properties, and senior
citizen and veteran’s tax credit information. Data on property
tax levies and assessed value come from the Abstract. |
| COUNTY GOVERNMENT
(TAXES): |
The amount paid by the municipality
to the county for the municipal share of the county tax levy as apportioned
by the County Board of Taxation. |
| COUNTY OPEN SPACE
(TAXES): |
The amount paid by the municipality
to the county for the municipal share of the dedicated open space
county tax levy (approved by public referendum) as apportioned by
the County Board of Taxation |
| COUNTY: |
A local unit of government governed
by a Board of Chosen Freeholders. The County is responsible for welfare,
education, tax assessment, elections, etc. (There are 21 counties
in New Jersey.) |
| EQUALIZED TAX RATE: |
The equalized tax rate is the
tax rate which would apply if the property taxed were assessed at
true value. Because New Jersey defines true value as market value,
and conducts a statistically designed sales ratio program In order
to calculate state promulgated equalization ratios, the equalized
property tax rate for New Jersey municipalities is the general tax
rate multiplied by the equalization ratio. |
| GENERAL TAX RATE: |
The tax rate applied to the
net taxable assessed valuation of a municipality to yield the required
tax levy. It is the rate shown on the Abstract of Ratables and on
the tax bill. Because of varying equalization ratios, it is a rate
that has no meaning when comparing tax rates between municipalities.
It is derived by dividing the total tax levy by the net valuation
taxable. All tax rates shown are based upon $100 valuation (i.e.,
cents per $100 of taxable value). |
| LOCAL/DISTRICT
SCHOOL (TAXES): |
Tax levy raised by the local
school district for the support of the school budget. |
| MUNICIPAL GOVERNMENT
(TAXES): |
The amount of taxes assessed
to support the municipal budget (i.e. to operate and maintain the
municipality and provide for municipal debt service.) |
| MUNICIPAL OPEN
SPACE (TAXES): |
The tax levy raised by the municipality
for dedicated open space purposes (approved by public referendum) |
| REAP TAX CREDIT |
The amount of property tax relief
received by limited number of municipalities that qualify for the
Regional Efficiency Aid Program, a special form of assistance that
reduces the total property tax levy for property owners whose primary
residence is in the municipality. |
| REGIONAL SCHOOL
(TAXES): |
Tax levy raised by the regional
or consolidated school district for the support of the school budget. |
| SCHOOL (TAXES)
IN MUNICIPAL LEVY: |
(a.k.a., Type I School Debt
Service) The amount of principal and interest included in the budget
of the municipal corporation for payment of debt for school structures
in Type I School Districts where the board members are appointed by
the Mayor of the municipality. |
| SPECIAL DISTRICTS: |
Independent governmental corporate
entities created by a municipality to provide specified functions
and having power to raise revenue through taxation and incur debt.
They are primarily autonomous fire districts, and voters within the
geographic boundaries of the district elect their officials. A municipality
may have more than one special district, each covering non-overlapping
parts of the municipality. There are several municipalities that have
solid waste districts that have taxing power, but are governed by
the elected officials of the municipality. Special Improvement Districts
(SID) consist of parcels determined by the governing body that are
subject to a special assessment to support business development. |
| TERM |
EXPLANATION |
| General
Tax Information (back
to top) |
| ACCELERATED TAX
SALE: |
Municipalities have the option
of anticipating their receipts for delinquent taxes in the current
fiscal year by holding its tax sale and receiving its revenue before
the end of the fiscal year – “accelerated” from
the traditional practice of holding the tax sale in the subsequent
fiscal year. |
| REAP QUALIFIED: |
A municipality that receives
Regional Efficiency Aid Program assistance, a special form of property
tax relief that reduces the total property tax levy for property owners
whose primary residence is in the municipality. |
| SENIOR CITIZEN
REIMBURSEMENT |
Senior citizens receive a special
property tax deduction on their tax bill in the amount of $250 for
senior citizens. The deduction is funded by the State. |
| STATE EQUALIZATION
RATIO: |
The equalization ratio promulgated
by the Director of the Division of Taxation on October 1st of each
year. |
| TAX COLLECTION
RATE: |
The percentage of total taxes
billed physically collected during the fiscal year. It includes the
proceeds of an accelerated tax sale for those municipalities that
exercise that option. The rate is used to compute the reserve for
uncollected taxes in the subsequent fiscal year. |
| URBAN AID (Qualification): |
A municipality that is eligible
for special consideration under certain State aid programs. Eligibility
criteria are at N.J.S.A. 53:27D-178 et. seq. and listed on the Division
of Local Government Services web site under “State Aid”
programs. |
| VETERANS REIMBURSEMENT: |
Veterans receive a special property
tax deduction on their tax bill in the amount of $250 for veterans.
The deduction is funded by the State. |
| TERM |
EXPLANATION |
| Ratable
Base (back
to top) |
| APARTMENT (PARCEL): |
For the purposes of categorizing
property, an “apartment” parcel contains more than four
residential living units on the parcel. |
| ASSESSED VALUE: |
The proportional value of property
assessed for real property taxation as determined by the local assessor
whose jurisdiction extends over a municipal area. (see Net Valuation
Taxable.) |
| EQUALIZATION RATIO: |
The ratio of assessed value
to true (market) value of real property. |
| EQUALIZED VALUATION: |
The true (market) value of real
property, calculated by dividing the assessed value by the equalization
ratio (see also State Equalized Value). Equalized, true, and market
values are terms often used interchangeably. |
| EQUALIZED VALUE: |
This item is calculated by dividing
the net valuation taxable by the State Equalization Ratio to arrive
at equalized value. It is promulgated by the Director of Taxation
and represents a uniform computation of property value by formula
designed to provide equitable distribution of State Aid programs. |
| FARM HOMESTEAD |
For the purposes of categorizing
property, a parcel used for residential purposes as part of a farm
and is not eligible for farmland assessment. N.J.S.A. 54:4-23.1 et
seq. |
| FARMLAND: |
For the purposes of categorizing
property, qualified land is assessed as “farmland” at
a fixed value of $500 per acre. N.J.S.A. 54:4-23.1 et seq. |
| NET VALUATION TAXABLE: |
The assessed valuation of real
property excluding Class II railroad property, over which property
taxes are levied. Telephone and telegraph equipment are assessed locally,
and are included in this figure. |
| PARCEL: |
A parcel is a piece of property
entered on the tax map as one unit and carried on the tax rolls for
assessment and tax collection purposes as one unit. |
| RATABLE: |
A ratable is a taxable parcel
of real property. |
| RESIDENTIAL: |
For the purposes of categorizing
property, a “residential” parcel contains four or fewer
residential living units. |
| TAX EXEMPT PROPERTY |
The assessed value of properties
that are not subject to property taxes. Because of difference in assessing
practices, the reliability of these amounts may not be current. |
| TERM |
EXPLANATION |
| State
Aid: Dedicated State Funded Property Tax Relief (back
to top) |
| STATE AID: |
Revenues represent amounts received
from the State under programs authorized by the State Legislature
and funded (mostly) through personal income taxes paid into the Property
Tax Relief Fund. They are solely used to offset or reduce the municipal
tax levy and do not increase local spending. The programs are entitlement
based and subject only to periodic inflationary increases: Consolidated
Municipal Property Tax Relief Aid, Energy Tax Receipts, Legislative
Initiative Block Grant Aid, and Homeland Security Aid. There are two
discretionary aid programs that are based on year-to-year need; Extraordinary
Aid and Special Municipal (Distressed Cities) Aid. There are several,
smaller directed programs that have limited eligibility: Pinelands
Aid and Watershed Aid.Garden State Trust Aid is provided by the state
as a Payment in Lieu of Taxation to municipalities that have dedicated
land as permanent open space N.J.S.A. 13:8C-1 et. Seq. NOTE: The State
Aid totals in the State Aid Table and Budget Information Table may
be subject to small variations due to timing of awards and budget
adoption. |
| TERM |
EXPLANATION |
| Budget
Information (back
to top) |
| ANNUAL BUDGET: |
The governing body of each local
unit is required by N.J.S.A. 40A:4-1 et seq., the Local Budget Law,
to adopt a budget for each calendar year. Every municipality and county
in New Jersey operates on a “modified cash” basis of accounting.
Municipal revenue and appropriation data come from this document. |
| APPROPRIATIONS
INSIDE CAP: |
Total municipal appropriations
budgeted for purposes that are subject to annual limits on increases
in appropriations, commonly known as “inside cap budget”
appropriations (N.J.S.A. 40A:4-45.1 et seq.) |
| CAPITAL IMPROVEMENT: |
The capital improvement expenditure
data in this report includes: down payments on improvements (a 5%
down payment is required in the Local Bond Law when making an appropriation
for improvement by ordinance), "Capital Improvement Fund"
(which may be used to provide the necessary down payment or may be
used to finance the improvement in whole or in part through an ordinance
appropriation), and other capital improvement appropriations for capital
projects or items of equipment such as fire engines, computers, vehicles,
etc., all that usually have less than a five year life expectancy. |
| CAPITAL IMPROVEMENT: |
Amounts appropriated in the
budget to purchase equipment that has an estimated useful life of
five years or greater, amounts used as the required 5% downpayment
for specific capital purposes, or contributions to the capital account
to be used for capital purposes at later time. |
| DEBT SERVICE: |
The payment made by the local
unit of the principal, interest and other charges on the obligations
issued by it whether temporary or permanent. |
| DEFERRED CHARGES: |
Unbudgeted expenditures, payment
of prior year's bills, deferred charges to future taxation. |
| DELINQUENT TAXES: |
All taxes unpaid at the close
of the year. |
| INTERLOCAL SERVICE
AGREEMENTS: |
Appropriations for service agreements
entered into with other municipalities, a board of education, or county
governments (a.k.a., shared services, N.J.S.A. 40:8A-1 et seq.) |
| JUDGMENTS: |
Amounts paid by court order. |
| LIBRARY APPROPRIATION: |
State law (N.J.S.A. 40:54-8)
provides that each municipal public or free library shall be provided
a minimum appropriation equal to one third of a mil of the assessed
value for the current fiscal year. |
| LOCAL NON-TAX REVENUE: |
The amount of local fees and
charges generated by the municipality in support of the municipal
budget. Includes local licensing, municipal court fines, and miscellaneous
revenue sources. |
| OPERATING APPROPRIATIONS
OUTSIDE CAP: |
Total of operating expenses
that are not subject to limits on increases in appropriations (N.J.S.A.
40A: 4-45.1 et seq.) |
| PRECEDING YEAR
CASH DEFICIT |
Amount of funds budgeted to
offset end of year deficits from the previous year’s budget. |
| RECEIPTS FROM DELINQUENT
TAXES: |
The revenue resulting from the
annual tax sale or lien assignment. |
| RESERVE FOR UNCOLLECTED
TAXES: |
A line item in the municipal
budget which is designed to insure the municipality sufficient cash
to carry out its functions after providing the required tax levy in
full to other government units-- schools, county and special districts.
This reserve becomes an amount added to the municipal tax levy required
to meet the budget, and represents the amount of tax monies expected
to remain uncollected at the end of the year, based on the collection
level of the previous year. |
| SPECIAL ITEMS OF
REVENUE: |
Primarily state or federal grants-in-aid
that are offset by spending. Also includes any donations or private
sector revenues used to offset spending for specific purposes. |
| STATE AID: |
The total State aid received
by the municipality and used to offset the municipal property tax
levy. |
| SURPLUS: |
The amount of the municipality
unreserved cash balance used to offset appropriations in the budget.
(also known as “fund balance). Surplus revenue may be in part
offset by deferred charges |
| (back
to top) |
