Included in Self Liquidating Calculation Flashcards
Receipts Included in Self Liquidating Calculation
Sewer Rents Prepaid Sewer Rents Applied Sewer Rents Overpayments Applied Interest Income Miscellaneus Fees
Not included in Self Liquidating Calculation
Lapsed Appropriation Reserves
Capital Outlay
Deferred Charges
Operating and Maintenance Costs included in the self liquidating calculation
Salaries and Wages Other Expenses PERS Social Security Debt Service
Statement where self liquidating calculation is done annually
Annual debt statement
If a utility is self liquidating….
utility debt is deducted from net debt
When is annual debt statement due?
January 31
When is annual financial statement due?
February 10
What does Fixed Capital represent?
Items which are completed
Fixed Capital Authorized and Uncomplete
Authorized but not complete
Reserve for Amortization represents
Bought and paid for
Supplemental debt statement is calculated
And filed by when?
As of the date of introduction
Prior to adoption
Reserve for Down Payment
Similar to CIF but is only used to make 5% down payment
Funded through operating budget
Fund Balance comes from:
- Cancellation of I/A
- Premium on the sale of bonds
- can be used to fully fund ordinance
- can be used to pay down debt but must be shown as a special item of revenue in the annual budget
Direct budget appropriation
In operating/current fund budget
must comply with “useful life” in Local Bond Law
Reserve for Specific Improvements
Amts may be budgeted and accumulated from year to year for specific purposes
Down Payment
Must be available prior to adoption of bond ordinance
CIF, Specific reserves, developers contribution
Not from Fund Balance
Capital Improvement Fund
Only used to finance appropriations made by ordinance
Not direct spending
Used for down payment, partially or fully fund ordinance, preliminary planning expenses
Raised in current fund or operating fund in the case of utility
General Capital Utility Capital Funds
Referred to as capital outlay
Appropriations in the capital fund
are created by bond ordinances
Bonding
set forth by Local Bond Law NJSA 40A:2
Capital Budget
does not appropriate any funds
Methods of Financing
Current Fund Appropriation
Deferred Charges to Future Taxation
Resolution for Preliminary Planning Expenses
Deferred Charges to Future Taxation
May appropriate in the current fund budget amounts to pay for “bonds and notes authorized but not issued”
Resolution for Preliminary Planning Expenses
May authorize funds by resolution from the CIF to pay for engineering fees, architectural fees, etc
Financing
All debt must be retired within the useful life of the project as stated in Local Bond Law
Bond Ordinance
authorizes the issuance of debt
fund local and general improvements
Reappropriation Ordinance
Unexpended balances for prior ordinances may be authorized to fund a different project
Why have a capital program?
Provides LT plan of priorities
Financing
Financial stability - avoid tax rate fluctuations
eliminate last minute emergency
update public improvement portion of master plan
credit ratings
eliminates conflicts proposed by different agencies
Capital Programming, Planning & Budgeting
Required by Local Budget Law NJSA 40A:4
Capital projects in the current budget exceed $25,000
A capital project ordinance is foreseen
If neither condition exists a capital budget does not need to be filed
Capital plan required
Whenever a capital budget is submitted
Population <10,000 = 3 yr period
Population > 10,000 = 6 yr period
Capital Budget
covers projects in the first year of the capital plan
capital program
long term plan
