"The Right To Clean Water is a Human and Constitutional Right" - A Story About Our Town and TWW

                 From time to time, I check on the various community Facebook pages to see what members are interested in.   A topic that seems to come up often is Trenton Water Works and, more specifically, what the Township is doing on behalf of its residents to address the poorly performing water utility that serves a majority of our community.  Surprisingly, many comments demonstrate a lack of awareness of the actions taken by the municipal government over the past several years to address the issue.  In response, I thought I would pull together information shared on the township website (www.lawrencetwp.com)  and my blog   (https://lawrencetownshipnjmanagerkpn.blogspot.com/).  Both sources provide information on all things “Lawrence Township” and should be a part of your “search” for information on any given topic related to the community.  The information is also frequently shared on our Facebook page (https://www.facebook.com/TownshipofLawrence/).  We can only make the information available to you, but you must take a step to receive it.

                Many, but not all, of our residents, are customers of Trenton Water Works.  Over the years, customers (including me) have received alarming notices from the utility about one issue or another relating to the quality of water we drink and use.  As you may know, Trenton Water Works is a public utility owned and operated by the City of Trenton (one of the oldest in the country).  With more than 225,000 customers, it serves the City of Trenton and portions of Hamilton, Ewing, Lawrence, and Hopewell.  It has been operating, believe it or not, since 1804!  In our recent history, over the past several decades, the aging infrastructure and poor management have been a consistent concern for all.

                In 2010, there was a serious initiative to sell TWW water lines and other infrastructure that serves the “outside water users ” (Hamilton, Lawrence, Hopewell, and Ewing) to New Jersey American Water for $80 million.  The sale met with opposition from customers from the townships concerned that the deal would result in higher water costs and resistance within the City that it would lose a significant asset that funded a portion of Trenton’s budget.  Ultimately, the residents of Trenton voted against the sale.  I was the Municipal Attorney for Lawrence Township back then, and my personal opinion then, as it is now, was that the deal with NJ American Water was good for the customers in the Township.  NJ American Water was a professionally managed water utility serving millions of customers in more than 20 states.  It had the means to replace the old water lines (with many being lead-based) and would be able to improve (pledging to commit millions of dollars to do so) and operate the facility with the highest standards.  Instead, we were left with TWW being owned and maintained by the City of Trenton and beholden to a dysfunctional city council that voted against funding much-needed improvements to the facility.

                In 2020, the New Jersey Department of Environmental Protection filed a lawsuit against Trenton and TWW to compel the water utility to take certain corrective actions to improve the infrastructure and operations of the facility.  I provided a copy of a Press Release explaining the action taken by the State against the City and then wrote a blog article that fully discusses the lawsuit.[i]  After NJDEP’s lawsuit was filed and made public, township officials from the outside water users (Hamilton, Lawrence, Ewing, and Hopewell) met to discuss the civil action and agreed that the towns should join the lawsuit to advocate on behalf of their residents who were customers of TWW.   As a result, the towns joined together and filed a motion to intervene in the lawsuit.  In an article I posted in my blog dated July 13, 2020[ii] I explained the action taken by the town to join the lawsuit to ensure they had a “seat at the table” to advocate for its residents.  In their filing, the townships demanded that “Trenton and TWW provide safe and clean drinking water for its residents.  The right to clean water is a human and constitutional right.  This is non-negotiable.  It is clear that Trenton and TWW have repeatedly and egregiously missed benchmarks in fulfilling their obligation to provide safe and clean water for the customers.” Another demand was asking the court to force Trenton to sell the portion of TWW that serves their townships “because TWW has proven incapable of consistently producing safe drinking water.”  

                Since the time the townships joined the lawsuit (during the time of the pandemic, which slowed the progress of the case), there have been many court conferences among the parties, site inspections and reviews, and many positive actions by TWW to improve the facility, infrastructure, and management.  In addition, the new makeup of the Trenton City Council is a significant and positive development for the success of TWW.  Mayor Reed Gusciora was never the problem.  He understood the need for TWW to improve in all respects, and now, I believe the new governing body has demonstrated through their actions and vote that they know and understand that the facility needs to be properly funded to meet the demands and conditions set by NJDEP officials. 

                Since NJDEP is the administrative entity that has the authority over water utility companies operating in New Jersey, it is best positioned to enforce the regulations, identify the issues causing TWW to operate below standards, and compel specific and necessary action for it to improve. Remember, in addition to your township, the State of New Jersey and Mercer County are public entities that represent you and your interests as residents.  I have read many comments on Facebook by residents that believe nothing is being done by their municipal officials.  It’s not true.   Improving a failing water utility with infrastructure that is aged and operated by underqualified professionals for decades will take time.  Have the actions taken by NJDEP and the townships to compel TWW to improve worked?  Yes, but we ain't done yet!  TWW has made progress, but it still has a long way to go to get where it needs to be to regain the confidence of its customers.  Confidence that the water we all drink and use and pay for is safe.  Not from time to time, but always.  Getting all of us to that mindset will take sustained and effective efforts by the City of Trenton and TWW to work to do what needs to be done.  Until that day happens, rest assured, the NJDEP and the townships will be relentless in their efforts to achieve the goal we all want – consistently safe water to drink and use – and one day not worrying whether it is or not.   

                For those wanting to take a deeper dive into this subject matter, I encourage you to visit my blog, where I go into more detail and provide links to pleadings by the parties.

               

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[i]  https://lawrencetownshipnjmanagerkpn.blogspot.com/2020/06/nj-ags-civil-action-against-city-of.html  and  https://lawrencetownshipnjmanagerkpn.blogspot.com/2020/06/to-those-who-want-to-better-understand.html

 

[ii] https://lawrencetownshipnjmanagerkpn.blogspot.com/2020/07/the-municipalities-file-their-motion-to.html

What a long strange trip it's been….. The Boulevard at Brunswick Pike

            About two weeks ago, many of you saw actual work to further the project that, through many iterations, became known as "THE BOULEVARD AT BRUNSWICK PIKE – A UNIFIED STREETSCAPE." On February 20, 2020, I published an article detailing the long history of the project and explaining some key factors, including a timeline for work to commence. Little did I know that in just several weeks, a health pandemic would rock our world in too many ways to describe here. Needless to say, this capital improvement project, along with many others (worldwide), was sidelined to allow government officials to focus on the immediate health and safety challenges presented by an unprecedented event where no playbook existed.   Witnessing the "shovel in the ground" on this project was an incredible and long-awaited moment for our community.   The following incorporates some of the information I shared in my 2020 article and some present-day facts to get you all up to date.

             In checking the records in our engineering department, the earliest documentation we found about the Township's efforts to improve the streetscape along Brunswick Pike date to 2005.  For those involved in all things "Lawrence" back then, you may have a personal recollection of discussions on this topic before 2005, but for our purposes, I am putting 18 years as the most accurate time frame.  Records I have reviewed indicate that our Township officials agreed with NJDOT (2010) on a plan to create a pedestrian-friendly urban streetscape that promotes commercial development.  The agreement included slowing traffic speed, improving pedestrian circulation and connectivity, and adding aesthetic elements to provide context for a "Main Street" environment. The design and planning were completed in 2015.

            For those who may not be aware, this section of road between Brunswick Circle to Lake Drive (U.S. Route 1) has always been owned and maintained by the State of New Jersey.  For the past several years, the Township took over that portion by agreement with the State after the State completed improvements that included the construction of the round-a-bout at Whitehead Rd, created on-street parking, widened the grass medians, and installed pedestrian crosswalks. These improvements provided the "bones" for the Township to complete the final improvements in creating a more pedestrian-friendly ("Main Street") environment.

             Once that work was completed, the Township immediately applied for and received a $60,000 grant to study and design a streetscape.  We then had our "community conversation" at several meetings (2/11/20 – Growth and Redevelopment Committee Meeting, 3/11/20 at the Slackwood Fire House, and council meetings) and obtained feedback and support from the stakeholders (i.e., our residents). 

            This has been a very long process, but our commitment to get this done was strong and sincere.  This section of our town deserves the attention we are giving it now after a long strange trip to get here. Though some may believe the plan falls short of expectations or possibilities, these improvements are thoughtful, significant, reasonable, and represent a fiscally responsible project.   And when you throw in the fact that we won a $700,000 grant from the State of New Jersey to do this work, it is hard to see a downside.

             The goals and framework we followed for this project are as follows:

 • Integrate the commercial corridor with the surrounding residential neighborhoods;

• Create safe pedestrian connections;

• Transform a highway to a more pedestrian-oriented "place";

• Honor the history of this transportation corridor; and

• Engage the community in design development

             Though our community discussions and planning involved the installation of "wind turbines" on the Whitehead Road round-a-bout, they have proven problematic from a traffic safety standard. We are opting for landscaping and planting a mature Red Bud tree at the center.

             I hope that our community can rally behind this project and appreciate the importance of responsibly making the strategic improvements we can and should make throughout our town.  Eighteen years is a long time, but over the last six years, we recentered our focus, kept our eye on the prize, and are getting it done!

The link to the report on the streetscape purpose and elements is here: 

https://www.lawrencetwp.com/media/Departments/EngineeringPlanningZoning/Reports%20MP%20Ammendments/Brunswick%20Pike%20Streetscape%20Design%20May%202020.pdf

Embracing the Sense of Community - Lawrence Township Memorial Day Parade and Ceremony

             Memorial Day holds a special place in the hearts of Lawrence Township residents. It's a time when the community comes together to honor and remember those who made the ultimate sacrifice for our country. However, as the years have passed, the significance of Memorial Day has often been overshadowed by barbecues, pool parties, and trips to the shore. It should be a time for us to pause, reflect, and rekindle the true spirit of this important day. 

            In Lawrence Township, I believe our sense of community is strong. It's a place where neighbors help neighbors, and unity is valued. The Memorial Day Parade is a powerful reminder of the collective spirit within our town. It is a day when residents put aside their busy lives to pay tribute to the brave men and women who have served in the military. As a child in the 1970s, I fondly remember attending and participating in the parade. I remember the streets lined with residents waving flags, fire trucks blaring their sirens, and kids running along the parade route pretending they were a part of it all – and they were! And, of course, the free candy that was thrown out to everyone from the floats that passed by  -- only the strong survived the mad dash for the pack of Smarties and gum on the roadway!

            In Lawrence, we have worked hard over the past several years to promote and make the parade a bigger and better event. Our Recreation Superintendant, Nancy Bergen, and her staff work hard behind the scenes to make it all happen, along with the support and assistance of the Township's Patriotic Committee.

            The parade and ceremony offer a unique opportunity to unite our community. Regardless of our backgrounds, political affiliations, or personal beliefs, we can all connect to honor our servicemen and servicewomen. By taking just a couple of hours out of our holiday festivities, we can come together as one, demonstrating our shared values and gratitude for the sacrifices made by our military personnel.

            The parade is a platform for various volunteer groups to showcase their dedication and commitment to serving others and for all of us to acknowledge and thank the local organizations that help make our community a special place to live and work. By attending the parade, we ensure that their efforts do not go unnoticed and that we stand behind them as they march in honor of our fallen heroes.

            The parade culminates in a solemn ceremony (at Veterans Park), adding another layer of significance to the day. The ceremony serves as a poignant reminder of the true purpose of Memorial Day and helps us reflect on the sacrifices made by our fallen heroes. We have named Paul Tweedly the Grand Marshal for the parade this year, leading the procession along the route and speaking at the ceremony. Paul is a retired captain from the Trenton, N.J. Fire Department and proprietor of Captain Paul's Firehouse Dogs in town. He has shown exceptional dedication to emergency services, the military, and their families, as well as unwavering commitment to our community.   He is a true community all-star.

            Join us on May 27, 2023, at 10:00 AM for the start of the Parade at Lawrence High School, which culminates in the ceremony at Veterans Park.

See our related press release for more information on our Grand Marshal and parade and ceremony details:

Grand Marshal 2023- Paul Tweedly.pdf (lawrencetwp.com)

If it's on the internet, it must be true.......ehhh, not really! A brief history of my salary and my responsibilities.

I recently came upon a Facebook post on one of the several community pages that stated the following:  

While raising our taxes, the town manager went from a salary of about $140000 to

$225,000. Why is the council making these moves. Did anyone else ever get a salary increase like

that???????! No wonder the manager wants behind-closed-doors meetings instead of public 

discussions.

So, I thought, ok  -- this may be the time where I peel away the onion of misinformation and celebrate a little more transparency with facts and context.  My salary was an issue at the last election, and it seems like it may be again in this year's election.  I responded to the post as follows (with some slight modifications included):

Hey Everyone; not everything you find and read online is true or provides context or explanation. The Employment Agreement I executed with the Township of Lawrence is dated April 28, 2017, and is available to anyone who makes an OPRA request. I took over the position of Municipal Manager from my predecessor, Richard Krawzcun, who was earning approximately $227,000 annually (yes, six years ago). My initial salary was $164,000, not $140,000, as the post suggests.  More than $60,000 less than the predecessor Municipal Mananger. 

The Employment Agreement provided for annual adjustments based on the cost of living increases received by other "Unclassified and/or Exempt" personnel working for our town. In addition, the Agreement provided for performance appraisals conducted on a semi-annual basis for December 2017, 2018, and 2019 and June 2018, 2019 (a probationary period to allow the elected officials to evaluate my performance more regularly and make incremental salary adjustments to close the salary gap with my predecessor). These performance reviews were negotiated and built into the Agreement because the disparity between the initial salary of $164,000 and the salary of my predecessor was substantial, and I would not accept the position otherwise.  

The Township hired me as the Municipal Manager and QPA (Qualified Purchasing Agent has a separate average statewide salary of approximately $45,000).  In addition to the responsibilities of a municipal manager by statute in our form of government, I am the Director of Community Development (previously a full-time township position) a member of the Planning Board and Director of Public Safety.  Also, when the Director of Affordable Housing (Andrew Link) retired (earning a salary and benefits that totaled more than $120K), I took on his responsibilities because I knew affordable housing from when I worked with him as the Municipal Attorney. I did this for no additional compensation (and hired an outside firm to process applications for less than $12,000 annually, so we didn't have to employ any support staff - saving the Township approximately $115,000).

With these savings, we were able to add the Community Aide position to our operations -- providing the Township with a professional and designated information officer to better communicate with our residents on various platforms and support new businesses. The governing body wanted to implement this for several years, and we seized the opportunity to do it at the right time. We accomplished this AND reduced THE OVERALL costs to the taxpayer. In addition, for those that have stated publicly and incorrectly, I do NOT take health benefits from the Township, which can cost more than $20,000 for families.

Moreover, because of my experience as the Municipal Attorney for the Township, I frequently review and prepare documents that, under my predecessor, were done by the Township Attorney (charging an hourly rate). There are way too many instances to name where my prior municipal attorney experience has allowed our community to save thousands of dollars in legal fees because we do not have to engage and pay a private attorney to do the work or provide guidance on issues.

Finally, when my contract was renewed and extended in July 2020 (also available to anyone who makes an OPRA request), the governing body included that I am to maintain a social media presence on various social media sites (which consists of a blog site) and to roll out a committed social media program and communications plan for the Township.

So, if you judge me......please consider the facts and what I do for the community. Also, please do not compare me to Business Administrators within Ewing Township, Hamilton Township, Trenton, or any other community with a directly elected Mayor.  That would be comparing apples to oranges.  They have fewer responsibilities than Municipal Managers. We are a Council-Manager form of government. Our elected officials are part-time. Our Mayor has no authority or responsibility over municipal operations or even an office in our Municipal Building. A municipal manager is responsible for all of the day-to-day operations of the municipal government (and all that it entails with 12 departments and more than 200 employees providing services to our community) AND is ultimately responsible for resident concerns.

For directly elected Mayor towns, along with a full-time business administrator, the Mayor is a full-time position, earning a full-time salary (and benefits), with authority to hire and fire department heads, handles constituency concerns, and is involved more directly in preparing the municipal budget. And has one or more full-time assistants. That is not what we do here.  Our elected officials appoint the municipal manager, set policy and are responsible to adopt a municipal budget and pass other important ordinances and resolutions. 

I hope this shines more light and clarifies how much I am paid, how my salary has increased over the six years I have been working here (which is close to equal to my predecessor of six years ago), and my overall responsibilities. I will leave for another day how we transformed our grant program to bring in millions of dollars more annually to this community compared to past years. As opposed to how the person who posted on FB about my salary increases, the other way to look at it is that our elected officials required the newly hired municipal manager to prove his value over a period of 2.5 years instead of simply matching the salary of the prior manager.  Six years into this job, I am now at the salary level of my predecessor.  

As for the comment that I want "behind closed doors meetings," I can only say that it is not only false, it is simply incredible in light of all of the information I have made available to all of you in the past six years.  The effort I have made to explain our decisions or the process we follow is well documented, and the community is more informed now than ever before.   

The Municipal Budget Process - Part II

            I intend this article to better inform those interested in our public budget process. Although it is a bit choppy with dates and descriptions, I hope that by the end of the article, the reader will be more informed about what we do and when, and maybe prompt them to participate or follow along more closely.

            Here we go:

            By mid-January, the CFO (Peter Kiriakatis) prepares a detailed municipal budget after reviewing the departmental budgets and having multiple meetings with me that provide him with the necessary budget forecasting to accurately determine costs (i.e., appropriations) and revenues anticipated for the coming year. From this process, Peter prepares the 2023 Recommended Budget. This document contains all the budget details (broken down line by line), so anyone can identify the expenses and revenues involved in running the municipal government.

            At the January 17 council meeting, I presented the Recommended Budget to the elected officials (i.e., council members), and Peter provided a presentation identifying specific factors that impacted us this year. We then made the Recommended Budget available on our website and social media pages. 

            On January 20, 2023, I published an article, "A Story About Our Budget Process and the Lawrence Community," on my blog, website, and social media sites. The Lawrence Gazette also published it so we ensured it reached as many people as possible. The article intended to give the reader a broad sense of our budget preparation process. Part two explains how we involve the public.

            From when I provided the Recommended Budget to the council members to when we formally introduced the 2023 Municipal Budget in early March, the budget is revised as we receive information that more accurately presents the picture of 2023 municipal finances. During this time, I provide our elected officials with updated information as they go through their process.

            On January 24, 2023, I provided council members with a document titled "The 2023 Budget Message." It explains the thought process and factors considered that helped determine what we believe is the most fiscally responsible budget for the coming year. Since the budget changes (over these early months), I modified the budget message multiple times and released the final version to the public at the formal introduction of the budget at the March 7 public meeting.

            Adopting the municipal budget is the most important authority our form of government grants to the council members. The voters elect the council members, who are responsible for thoroughly reviewing the budget, questioning it, working with the Municipal Manager on modifying it, and ultimately adopting a budget they can support and believe to be in the community's best interests.   

            There are five council members, and a majority vote is required to adopt the budget. Of course, there are times when some members disagree on budget matters, but the majority rules whether to adopt or reject the budget.

            From late January through February, the department heads present their budgets to the council members at open public meetings. These occurred on February 7 and February 21. If a department head cannot participate in the meeting, the presentation is available on our website for the community to review.

            On March 7, 2023, I formally introduced the 2023 Municipal Budget to the council members at a public meeting with a decreased tax increase at the request of council members. At my request, our CFO attended the January 17, February 7, February 21, and March 7 meetings and was ready to answer any questions the public had. According to NJ Budget Law, we must adopt the municipal budget by April 28, 2023. We have scheduled our public hearing to adopt (or reject) the budget for April 18, 2023.

            When the council members appointed me, they made it clear they wanted our process to be more transparent and for me to step out from my office and engage the public more meaningfully through social media and any other means possible. With this in mind, the budget process we engage in allows any interested resident to be better informed. In addition to how we put information out, any resident may contact me to ask questions. I am happy to meet with anyone should a phone call or email not satisfy them. My predecessor often met with residents regarding the budget. However, I believe the information we provide to the public on the website, social media sites, local newspapers, public meetings, and my blog reduced the need for those types of meetings. To date, I received two telephone calls regarding this year's budget, and both were a "thank you" for the article in the Lawrence Gazette.

            As for our budget this year, the tax increase of 2.50 cents (1 cent = $470,635) is driven by several factors. First and foremost, we are not immune from the higher costs of almost everything due to post-pandemic inflation. In addition to inflation factors, we identified serious public safety issues to address this year. Our Fire Chief and Police Chief at the public meeting on February 7 thoroughly explained these issues.

            We are hiring three firefighters, two emergency medical technicians, two civilian employees for the LTPD (to return police officers to doing police work), and two public works employees to better manage our parks and township lands.   These additions to staff represent 1.0 cent of our (2.50 cent) increase. Also, due to the NJ Budget Law, we could not claim (or add to our revenue) $450,000 of the cannabis tax we will receive in 2023. Our inability to claim this revenue makes our budget 1.0 cent more than we actually need. So we are up a cent for the 2024 budget!

            If we didn't have a serious public safety issue to address or could have claimed the cannabis tax revenue, we would be down to a .005 cent increase. The remaining half cent increase over last year is primarily explained by contractual increases (salaries, township share of pension contribution, ELSA, health insurance, 911 dispatch, and garbage collection) totaling more than one million dollars which we were able to offset by increased revenues.  

            The township's finances are strong. Each year we reduce our debt (and expect to be debt free in 2027), increase our Surplus Fund (so we borrow less), and enjoy the highest credit ratings that allow us to get the best financing terms when needed. We also remain the 3rd lowest tax rate in Mercer County while seeing the values in houses increase.  We have rebuilt our staff to better meet the services that our community expects and demands. For those who want us to use more from our Surplus Fund to reduce this year's tax increase, the answer is that is shortsighted and simply fiscally irresponsible. When you use more Surplus than you can regenerate, you trigger a downward financial spiral that leads us to areas we have been before not so long ago (2009 through 2015)  – and I won't allow us to go back to those troubling times without a fight.  

REVISED 2023 Municipal Budget Message

Below is the revised version of a previously released budget message.  The revised message provides for a reduction of the tax increase from 2.75 cents to 2.50 cents.  This is what is in the budget introduced to the governing body at the March 7, 2023 meeting.

Key facts to help you understand the budget comparison from 2022 to 2023.  First, the 2023 Municipal Budget Amount is $61,763,587, which is $8,983,314 more than the 2022 Municipal Budget.  However, the growth in the budget is driven primarily by two factors: 1) $4.9 million in grant funds received; and 2) the transfer of $3,350,000 from our Surplus Fund to our Capital Improvement Fund.   These two factors total $8,250,000, and both have absolutely nothing to do with an increased burden on our taxpayers but must be included in our budget as required by law.  

The difference in the Amount to be Raised by Taxation from 2022 to 2023 is $1,259,547.27.  This translates to an increase of $18.75 (or $75 annually) quarterly to a taxpayer with a home assessed at $300,000.   The increase is more fully explained in the message below.

2023 Lawrence Township Budget Message

            The challenges we face in our 2023 municipal budget are the challenges we all face as individuals; the rising costs of all things across many industries in a post-pandemic world otherwise known as inflation.  Fortunately, we are well positioned to meet this challenge because our budgets over the past several years have conservatively addressed our needs, reduced our debt[1], and maintained the services to the community at the levels we expect and demand.   This year we planned a budget and our future on fiscally solid ground.

            With inescapable increases across all categories of appropriations (i.e., costs) partially offset by an increase in ratables, a half year of a new cannabis tax, and a successful grant program,[2] we are still able to address serious public safety needs by funding three new firefighter and two new EMT positions[3] and recommend a budget that provides for a 2.50 -cent tax increase.  We continue to maintain and increase our Surplus Fund[4] by using only as much as can be regenerated by year-end.  By doing this, we can better maintain our high credit rating and enjoy the benefits of the best rates for financing our essential community projects and infrastructure improvements. 

             Additionally, this year we plan to transfer $3,350,000 from our Surplus Fund to our Capital Improvement Fund to fund our future capital improvement projects to avoid paying higher financing charges from bonding for the work.  Importantly, this transfer does not factor in the amount to be collected by taxation. 

            The recommended municipal tax rate for 2023 is .6520 [".6270], which represents a 2.50¢ increase^[5].  One (1) cent = $470,635.

            The Amount to be Raised by Taxation in 2023 is $30,686,650.90 [$29,427,103.63], which is $1,259,547.27 over 2022.

ü  The Levy Cap Bank available from 2021 and 2022 is $1,978,355 [$1,353,473], and we will use $0 to remain within the 2% tax levy cap.  NOTE:  The 2023 Recommended Budget is $3,595,303 [$895,916] under the Levy Cap and is available for "Banking." This addition to the 2021 and 2022 banks will leave a usable "cap bank" of $5,573,658 [$2,249,389] for future budgets.         
 

ü  The 2022 year-end Surplus Fund balance is $20,687,139.52 versus a 2021 year-end balance of $17,529,312.69, an increase of $3,157,826.83 

ü  The Surplus balance remaining available after applying an amount as anticipated revenue will be $10,772,139.52 [$10,679,312.69], an increase of $92,826.83 over the 2022 remaining balance.   

ü  The cash reserve balance for tax appeals is $6,219,491.18 [$6,219,491.18].

ü  The decrease in outstanding debt continues.  The 2010 closing balance was $30,797,000.  The 2022 closing balance is $13,210,850 [$15,631,000].   

            Fiscal strength is evident as $9,915,000 [$6,850,000] in Surplus Fund used in the 2023 budget has been regenerated at the close of 2022.  Surplus Fund is the excess in the following Balance Sheet categories:  Amount to be Raised by Taxation, Miscellaneous Revenues Anticipated (MRA), Delinquent Taxes, Prior Year Appropriations Lapsed, and Miscellaneous Revenues Not Anticipated (MRNA). 

            In 2023, we recommend utilizing $9,915,000.00 from Surplus Fund, $20,331,936.67 in MRA, $830,000 in Delinquent Taxes and $30,686,650.90 in Amount to be Raised for Taxes.  The total of these balance sheet categories equates to the municipal budget of $61,763,587.57.

 s/Kevin P. Nerwinski                                            2/27/2023

________________________________________

Kevin P. Nerwinski, Esq.                               (Date)

Municipal Manager/QPA

Township of Lawrence

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[1] We are on schedule to be debt free at the end of 2027 if no new debt is taken on.

[2] 1) ELSA increase; 2) Health Benefits increase; 3) Contractual increases to Salary & Wages; 4) New Hires (i.e., three firefighter, two EMTs and two PW employees); 5) Increase in Uncollected Taxes; 6) Increase in Debt Service (principal and interest/Capital Improvement Funding); 7) Increase in solid waste collection; and 8) Increase in Public Employee Pension contributions; and Emergency Dispatch Service incease.

[3] Multiple hires for Fire and EMT positions is required so that we can create an additional shift for each department. Less than these numbers will not accomplish our goal.  At this point, it is either all or nothing to address this important need.  NOTE:  We are also adding two new Public Works laborers to address increased responsibilities to maintain Brunswick Avenue Streetscape, Hero Dog Parks, and our other community parks.

[4] This is also known as Fund Balance on our General Ledger.

[5] NOTE:  Figures in [ ] are 2022 amounts included for comparison.

 

2023 Lawrence Township Budget Message

                                          2023 Lawrence Township Budget Message

           The challenges we face in our 2023 municipal budget are the challenges we all face as individuals; the rising costs of all things across many industries in a post-pandemic world, otherwise known as inflation.  Fortunately, we are well positioned to meet this challenge because our budgets over the past several years have conservatively addressed our needs, reduced our debt[1], and maintained the services to the community at the levels we expect and demand.   This year we planned a budget and our future on fiscally solid ground.

             With inescapable increases across all categories of appropriations (i.e., costs) partially offset by an increase in ratables, a half year of a new cannabis tax, and a successful grant program,[2] we are still able to address serious public safety needs by funding three new firefighters and two new EMT positions[3] and recommend a budget that provides for a 2.75-cent tax increase.  We maintain and increase our Surplus Fund[4] by using only as much as can be regenerated by year-end.  By doing this, we can better support our high credit rating and enjoy the benefits of the best rates for financing our essential community projects and infrastructure improvements.   Additionally, this year we plan to transfer $3,350,000 from our Surplus Fund to our Capital Improvement Fund to fund our future capital improvement projects to avoid paying higher financing charges from bonding for the work.  Significantly, this transfer does not factor in the Amount to be Collected for Taxation. 

             The recommended municipal tax rate for 2023 is .6545 [".6270], which represents a 2.75¢ increase^[5].  One (1) cent = $470,635.

             The Amount to be Raised by Taxation in 2023 is $30,804,309.70 [$29,427,103.63], which is $1,377,206.7 over 2022.

 ü  The Levy Cap Bank available from 2021 and 2022 is $1,978,355 [$1,353,473], and we will use $0 to remain within the 2% tax levy cap.  NOTE:  The 2023 Recommended Budget is $3,477,645 [$895,916] under the Levy Cap and is available for "Banking." This addition to the 2021 and 2022 banks will leave a usable "cap bank" of $5,456,000 [$2,249,389] for future budgets.    

ü  The 2022 year-end Surplus Fund balance is $20,687,139.52 versus a 2021 year-end balance of $17,529,312.69, an increase of $3,157,826.83          

ü  The Surplus balance remaining available after applying an amount as anticipated revenue will be $10,772,139.52 [$10,679,312.69], an increase of $92,826.83 over the 2022 remaining balance.

ü  The cash reserve balance for tax appeals is $6,219,491.18 [$6,219,491.18].

ü  The decrease in outstanding debt continues.  The 2010 closing balance was $30,797,000.  The 2022 closing balance is $13,210,850 [$15,631,000].   

            Fiscal strength is evident as $9,915,000 [$6,850,000] in Surplus Fund used in the 2023 budget has been regenerated at the close of 2022.  Surplus Fund is the excess in the following Balance Sheet categories:  Amount to be Raised by Taxation, Miscellaneous Revenues Anticipated (MRA), Delinquent Taxes, Prior Year Appropriations Lapsed, and Miscellaneous Revenues Not Anticipated (MRNA). 

             In 2023, we recommend utilizing $9,915,000.00 from Surplus Fund, $20,276,842.93 in MRA, $830,000 in Delinquent Taxes, and $30,804,309.70 in Amount to be Raised for Taxes.  These balance sheet categories equate to the municipal budget of $61,826,152.63.

 s/Kevin P. Nerwinski                                           2/21/2023

NOTE to be included in a published article:  The budget message and recommended budget are prepared by the Municipal Manager (and Chief Finance Officer) and presented to the Lawrence Township Municipal Council for review and consideration.  The elected officials will review the proposed budget, consider the presentations by department heads and pose questions to the Municipal Manager and Chief Financial Officer, and, ultimately, decide whether to approve the budget as recommended or make adjustments they deem necessary and appropriate. 

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[1] We are on schedule to be debt free at the end of 2027 if no new debt is taken on.

[2] 1) ELSA increase; 2) Health Benefits increase; 3) Contractual increases to Salary & Wages; 4) New Hires (i.e., three firefighter, two EMTs and two PW employees); 5) Increase in Uncollected Taxes; 6) Increase in Debt Service (principal and interest/Capital Improvement Funding); 7) Increase in solid waste collection; and 8) Increase in Public Employee Pension contributions; and Emergency Dispatch Service incease.

[3] Multiple hires for Fire and EMT positions is required so that we can create an additional shift for each department. Less than these numbers will not accomplish our goal.  At this point, it is either all or nothing to address this important need.  NOTE:  We are added two new Public Works laborers to address increased responsibilities to maintain Brunswick Avenue Streetscape, Hero Dog Parks, and our other community parks.

[4] This is also known as Fund Balance on our General Ledger.

[5] NOTE:  Figures in [ ] are 2022 amounts included for comparison.