Nick Trasente's presentation on FY 2011

Nick's presentation on FY 2011. Go to http://www.ustream.tv , search "Hoboken", look for the second tape of 3 of Wednesday March 3rd Council meeting and go to minute 19 to hear Nick's executive summary of the operating and extraordinary expenses that this $101MM budget, $54MM tax levee budget does.

It's 10% below the 2010 Fiscal Year Budget. The 2010 FY budget did NOT budget for over $5MM in tax appeals which comes out of the tax levee ie it's an adjustment to the operating budget - you can't bond for tax appeals. This means the reduction in taxes over FY2010 is actually more than 10% because tax appeals were paid in FY 2010 but not projected in that budget that is used for comparison to this 2011 calendar budget.

Pay close to pages 5+ that goes over the surplus:  $25MM - MANDATORY deductions like giving tax back to veterans to get to $14.7MM usable.  Of the $14.7MM usable $9,585,000 was used for extraordinary expenses that would have otherwise come from the tax levee.  So, $9,585,000 of the $14.7MM surplus was used to give back to tax payers.  The difference was used as savings for unexpected expenses and to improve our bond rating.  All of the work on the waterfront, 3 remaining pumps, termites will have to be bonded for.  Improving our bond rating will reduce our interest rate on that money.  It's like having a down payment on a mortgage.  If you have a down payment, you will pay far less on interest and surcharges than if you have no equity.

CY 2011 Budget Presentation Nick Trasente