Middle Introduces 2016 Budget; Tax Rate Will Remain Level

COURT HOUSE – Middle Township Committee used its work session March 21 as a forum for a presentation of its 2016 budget. It followed that by formally introducing the budget at the regular business meeting later that evening.
The $20,459,648 current fund budget kept the local purpose tax rate at its current $.452 cents per $100, or $452 for a property assessed at $100,000. This is the second year in a row that the township has held its tax rate steady.
The budget projects 60 percent of the township’s revenue from the local tax with the remaining 40 percent coming from miscellaneous revenue and use of surplus.
The 2016 budget made use of less surplus than was used in 2015 and kept projections of miscellaneous revenue largely the same as the previous year. “We took a conservative approach,” said Chief Financial Officer John Clifford, meaning that revenues from 2015 that exceeded anticipated levels were not projected to do so again in 2016.
Anticipated revenues for the sewer utility came in slightly higher than in 2015 with the total anticipated at $4,570,500. The portion of that revenue from user charges was kept steady with no increase.
Mayor Michael Clark, who in the past had supported small tax increases as a prudent long-term budget practice, was asked why his first budget as a member of the majority on committee did not adopt that principle? Clark’s response was that it was not necessary this year. “We have a good budget,” that did not require an increase.
Daniel Lockwood, former committeeman, raised several issues from the floor during the work session presentation some of which involved different options for accounting for revenues and expenses.
One issue that absorbed the most time was the township’s skipping of a capital debt payment in the 2016 budget which is allowed because a group of short term debt obligations will be part of a new longer term bond issue this year.
Clifford defended the approach as legal and acceptable because of the anticipated “cleanup” of temporary debt. “This made it possible to put $200,000 into the capital improvement account and use a little less surplus this year,” he stated.
With the budget formally introduced, there will be a public hearing and resolution for adoption in April.
Joint Insurance Fund
Part of the work session was given over to a presentation by Paul Forlenza from the Atlantic County Municipal Joint Insurance Fund. The JIF is essentially a self-insurance mechanism by which Atlantic and Cape May county municipalities gain liability insurance at rates significantly lower than those they would pay on the commercial market.
The JIF has been in business for 29 years and 41 municipalities, including all 16 in Cape May County, are members.
Forlenza explained that the JIF was established by statute and is a state-regulated entity. Its focus is on reducing the number of liability claims through safety programs and risk management efforts, while also offering professional claims and litigation management when needed.
Since the JIF has no profit incentive “premiums collected by the JIF and not spent on losses and other program expenses are returned to the members with interest,” Forlenza said. Since inception the JIF has returned a total of $28 million in excess premiums in the form of dividends to members.
The focus of many of JIF’s programs is on training and risk management exercises that reduce incidents where claims are filed.
Prudent management has also allowed JIF to operate on just 11 cents per dollar, significantly less than a commercial insurance carrier. The essence of Forlenza’s presentation was that lower overhead, lack of a profit incentive, professional litigation and claims management, and intimate ties with municipal customers allows the JIF to be a strong partner for municipal governments in its two-county range.
Shopping Carts
The proposed shopping cart ordinance was again on the agenda. The aim will be to significantly reduce the number of shopping carts taken off store premises and left in various areas especially bus stops. 
Police Chief Christopher Leusner informed committee of the results of his calls to businesses in the state that used the proposed electronic fence which will lock wheels of an equipped cart when it is taken off the store’s lot. 
Leusner found a number of stores where the system was viewed positively as “something that works” to help the stores keep track of carts. Interspersed with the positive responses were a number of instances where store managers pointed to high costs and the ability of individuals to find ways to defeat the system.
The problem is most pronounced in Rio Grande shopping areas. Leusner will next invite store representatives to attend a designated work session. The goal is better management of carts, not necessarily an ordinance that mandates a specific approach.
To contact Vince Conti, email vconti@cmcherald.com.