Conference/Public Meeting Agenda/Documents — Packet

Best Practices Worksheet CY 2012/SFY2013 West Orange Township (Essex) 0722 Please see Color Key at bottom of sheet for limits on answers Answer Question Comments Has your municipality fully and accurately disclosed in the "Budget Message" section of your CY2012/SFY 2013 budget the following: Revenues at Risk; Non-Recurring Cost 19 Yes Reductions; Anticipated CY2013/SFY 2014 Appropriation Increases; and Structural Balance Offsets as detailed in Local Finance Notice 2011-37? In preparing your annual budget it is important for both the governing body and public to understand the concept of surplus and how it accumulates (or declines) over the years. A While this review and analysis is formal policy regarding surplus serves as a basis for decisions concerning future financial performed extensively during the solvency, and the lack of a policy could lead bond rating agencies to downgrade your budget process, no formal policy has 20 Prospective municipality's credit rating. In developing said surplus policy your CFO should analyze been established. We will work toward and explain at least a five-year trend of surplus; illustrating the factors causing each establishing such a policy for the annual increase or decrease. A surplus policy with realistic and sustainable goals can upcoming budget season. then be determined. Does your municipality have a written policy goal

upcoming budget season. then be determined. Does your municipality have a written policy goal for the amount of surplus available in support of municipal operations, and is this goal evaluated annually? In preparing your annual budget for the current year it is important that the impact that these decisions may have on future years' budgets be presented, evaluated and considered before final action is taken. Long term plans concerning revenue, appropriations, tax levy, tax levy cap and surplus are critical toward sustaining (or 21 Yes achieving) a solid fiscal condition. Are projections calculated and discussed in sufficient detail so that the governing body understands the impact that the current year's budget may have on the future tax levy (as restricted by the levy cap) and future surplus balances for at least two (2) future year's budgets? Certain municipalities have indirectly pledged prompt payment (i.e. issued a guarantee) of debt service with respect to debt issued by counties, independent authorities or developers. Bond Rating Agencies (e.g. Moody's, Fitch, Standard & Poor's) have downgraded certain municipalities' bond ratings to below investment grade for lack of preparation in the event a lender calls in a The Township has not issued any such 22 N/A debt guarantee. If your municipality guarantees any debt, are direct service revenues that may debt. be pledged against debt repayment monitored by the municipal CFO; and to the extent that cash flow from pledged revenue will not satisfy the debt repayment, are sufficient funds held in reserve to satisfy the guarantee or is an existing authorization in place to issue debt (e.g. a bond ordinance) in the event a lender calls in the guarantee?

Best Practices Worksheet CY 2012/SFY2013 West Orange Township (Essex) 0722 Please see Color Key at bottom of sheet for limits on answers Answer Question Comments Such reporting has historically been provided to the governing body. However, in 2012 the Township has transitioned to a new finance and collections recording system. During Do elected officials receive status reports at least quarterly on all budget revenues and 23 Yes this extensive transition, the first two appropriations as they correspond to the annual adopted budget? quarterly reports we not available for distribution in a timely manner. However, the 2012 third and fourth quarter reports will be distributed the month following the end of the quarter. Given the potential fiscal impact of property tax appeals on municipalities, the Tax Assessor and CFO should review the status of filed appeals on a regular basis to determine their effect on future budgets and

rty tax appeals on municipalities, the Tax Assessor and CFO should review the status of filed appeals on a regular basis to determine their effect on future budgets and plan accordingly. With input and approval from the governing body, this plan should include an evaluation of current assessment values and should consider setting aside an adequate estimated reserve to fund potentially successful state tax court appeals. Has your municipality considered a 24 Yes property reassessment/revaluation to counter the effect of successful residential tax appeals? In answering this question, a yes answer indicates that the municipality either 1) determined after reviewing assessed values that a reassessment/revaluation is unnecessary due to assessed values accurately reflecting market values (resulting in a small number of successful appeals); or 2) if the impact of appeals is significant, a revaluation plan has been filed with your County Board of Taxation. In developing your multi-year capital plan, is your municipality dedicating sufficient 25 Yes revenues to fund maintenance, repair and eventual replacement of infrastructure such as roads, storm sewers, sanitary sewers and water systems? N.J.S.A. 40A:4-62.1 allows for the creation of a dedicated trust fund to reserve funds budgeted during years with relatively little snowfall for use in future years when excessive snowfalls may exceed budgeted funds. Although this past winter may have 26 Yes been mild, a responsible budget will take into consideration its impact on future years. In your 2012 budget, has your municipality reserved at least the average of snow removal expenses incurred over a minimum of 3 years?

Best Practices Worksheet CY 2012/SFY2013 West Orange Township (Essex) 0722 Please see Color Key at bottom of sheet for limits on answers Answer Question Comments Health Insurance - HI The Townships policy prohibits such Does your municipality exclude from healthcare coverage part-time elected and 27 Yes healthcare coverage for part time appointed officials (less than 35 hours per week)? appointees hired after 1/1/1996. The Townships policy prohibits such Does your municipality limit health benefits to full-time (35 or more hours weekly) 28 Yes healthcare coverage for part time employees (excluding elected and appointed officials)? employees hired after 1/1/1996. Does your municipality conduct a monthly review of health benefit covered lives in an 29 Yes effort to delete employees, spouses or dependents who should no longer be receiving coverage?

Best Practices Worksheet CY 2012/SFY2013 West Orange Township (Essex) 0722 Please see Color Key at bottom of sheet for limits on answers Answer Question Comments As explained in Local Finance Notices 2011-20R and 2011-34, P.L. 2011 c. 78 requires employees to contribute toward healthcare based on a percentage of total premium 30 Yes cost, subject to a four-year phase-in. Has your municipality implemented the employee healthcare contribution provisions contained in P.L.2011 c. 78? Municipalities frequently contract with or designate insurance brokers to secure healthcare coverage from insurance carriers. Brokers are typically paid by third-party administrators (TPA's) hired to collect, review and pay healthcare bills. The municipality pays the TPA, who in turn pays the broker. Broker fees are often directly related to the amount of insurance premiums or fees paid by the municipality (i.e. the higher the premium, the larger the broker's commission). Thus, the municipality-broker-TPA 31 N/A The Township does not employ a TPA arrangement is vulnerable to abuse because brokers could face conflicting incentives in seeking lower-cost insurance alternatives. If your municipality contracts with or otherwise designates an insurance broker, is the structure for broker payments pre-set (i.e. plainly disclosed in the resolution and/or contract designating the broker of record) so as to mitigate the risk of brokers recommending more expensive insurance coverage to earn higher fees? The State Health Benefits Program (SHBP) offers medical, prescription and dental coverage options for more than 850,000 participants, including employees, dependents and retirees. All plans have substantial networks of healthcare providers, and provide 32 Yes services nationwide. 62% of municipalities, and

, including employees, dependents and retirees. All plans have substantial networks of healthcare providers, and provide 32 Yes services nationwide. 62% of municipalities, and 33% of counties, within New Jersey participate in SHBP. As your municipality's collective bargaining agreements come up for renegotiation, do your municipality's negotiation proposals seek contract provisions allowing its employees to be switched to SHBP? If your municipality does not participate in the State Health Benefits Program (SHBP), 33 Yes have competitive proposals for health insurance been solicited in the last three years; including from the Division of Pensions and Benefits for SHBP health insurance coverage? Personnel - PE

Best Practices Worksheet CY 2012/SFY2013 West Orange Township (Essex) 0722 Please see Color Key at bottom of sheet for limits on answers Answer Question Comments N.J.S.A. 43:15A-7.2 and 43:15C-2(b)(4) preclude independent contractors and individuals performing professional services for any municipality or agency (e.g. municipal attorney, auditor, planner) under a professional services contract awarded pursuant to the Local 34 Yes Public Contracts Law from membership in the Public Employees' Retirement System (PERS) and Defined Contribution Retirement Program (DCRP) . Has your municipality reviewed the status of your independent contractors and professional services providers to ensure they are not deemed eligible for PERS and/or DCRP? The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments. The law requires that overtime pay must be paid for all hours over 40 hours in a work week except for those employees classified as exempt and thus not entitled to overtime. Management employees such as elected officials, municipal managers/administrators, municipal clerks, CFOs, public works superintendents, police chiefs and other department 35 Yes heads are typically classified as having exempt status and are not entitled to overtime pay. Other municipal employees may also be classified as exempt under the FLSA (you should consult with your labor counsel for more detailed guidance). Does your municipality refrain from paying overtime to employees who are classified as exempt under the FLSA? In answering this question, be aware that exempt status would also preclude overtime pay for time worked during emergencies, attendance at night meetings, participation in training sessions, and police “off-duty”

empt status would also preclude overtime pay for time worked during emergencies, attendance at night meetings, participation in training sessions, and police “off-duty” assignments (a/k/a “Jobs in Blue”). N.J.S.A. 34:13A-8.2 requires public employers, including municipalities, to file with the Public Employment Relations Commission (PERC) a copy of all contracts negotiated with public employee representatives. This includes, but is not limited to, collective 36 Yes bargaining agreements, memoranda of understanding, contract amendments, and "side letter" or "side bar" agreements. Copies of same may be emailed to contracts@perc.state.nj.us. Has your municipality filed all current contracts with PERC?

Best Practices Worksheet CY 2012/SFY2013 West Orange Township (Essex) 0722 Please see Color Key at bottom of sheet for limits on answers Answer Question Comments Does your municipality make available to the public free of charge, either through an internet posting or on-site review, documents that show the current salaries of all 37 Yes personnel and additional documents that would allow the public to view how your municipality’s salaries have changed over a three year period? Are standardized forms completed and filed, either electronically or by paper, to verify all 38 Yes employee time worked (e.g. time cards, electronic time keeping)? Does your personnel/human resources office maintain records that account for all leave 39 Yes time earned and used by employees? Do supervisors review and approve/deny employee time and attendance documentation 40 Yes before those records are submitted to management and, in the case of department heads, is such documentation reviewed and verified independently? Does your municipality limit the carry forward of accrued vacation time to no more than the amount earned in the previous year (meaning no employee hired after the effective Township policy allows up to two years 41 No date of the limitation policy can keep in any given year more vacation time that they of vacation carry forward. earned in the prior year)?