Bayonne CFO explains expenses in tentative 2015 budget to City Council

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Terrence Malloy, Bayonne’s Chief Financial Officer (CFO), addressed the City Council on the subject of the upcoming 2015 budget, which will be proposed next month. 

 [fve]http://youtu.be/wi0kCtLL4n4[/fve]

To fully understand the budget, Malloy explained the effect of being reliant on non-recurring revenues. The problem is when non-recurring revenue is used and there is no new revenue to replace it, a structural revenue deficit is created.

He measures the structural revenue deficit in three ways: gross structural, adjusted structural and the net structural deficit.

Malloy announced the 2015 gross non-recurring revenue sis $20.667 million, 2015 structural as $20.667 million and then the 2015 net structural revenue deficit as $15.667M.

He also mentioned a list of non-recurring revenues that has been appropriated since fiscal 1997, totaling $468 million, of which $53 million was anticipated, but not received.

The revenue was used for general support of the municipal budget such as police services, fire services, public works and trash collection, as well as other services the city provides.

Despite the municipal tax increase every year, the deficit has not been reduced because of tax appeals, rise in pension, health benefits and emergencies such as snow and Superstorm Sandy.

Also since fiscal year 2008, the annual state aid has been reduced by $7.4 million, Malloy said.

Some of the highlights of this year’s budget includes the reduction of $4 million in non-recurring revenues, an EMR contract reduced to 0 and the balance of the MUA concession fee being appropriated.

The anticipated budget will be adopted no later than June.