Township Council Meeting — Packet

1. Conference Meeting Agenda Documents: CA 12.9.25.PDF 1.I. Debt Management Plan - REVISED 12.9.25 Documents: WEST ORANGE DEBT AND FINANCE PRESENTATION 12-9-25 (REVISED).PDF 2. Bill List Documents: 12.9.25.PDF 12.9.25 SUPPLEMENTAL.PDF 3. Public Meeting Agenda - REVISED Documents: PM 12.9.25 - REVISED.PDF 4. Resolution(S) 4.I. 261-25 Documents: 261-25 AUTHORIZING AWARD OF CONTRACT FOR TREE PLAINTING TO CERBOS - 2026.PDF 261-25 CERBO SUBMISSION.PDF 261-25 PLAN HOLDERS LIST-2026 TREE PLANTING-UNOFFICIAL.PDF 4.II. 273-25 Documents: 273-25 ESSEX COUNTY COMMUNITY DEVELOPMENT BLOCK PROGRAM 2026.PDF 273-25 EXHIBIT A-FY 2026 PRIORITY LIST.PDF 4.III. 274-25 Documents: 274-25 RAFFLE LICENSES 12.9.25.PDF 4.IV. 275-25 Documents: 275-25 RELEASE OF PERFORMANCE BOND 609 EAGLE ROCK AVENUE.PDF 275-25 CO BOND RELEASE.PDF

4.IV. 275-25 Documents: 275-25 RELEASE OF PERFORMANCE BOND 609 EAGLE ROCK AVENUE.PDF 275-25 CO BOND RELEASE.PDF 4.V. 276-25 Documents: 276-25 RESOLUTION FOR TREE REMOVAL SERVICES - 2026.PDF 4.VI. 277-25 Documents: 277-25 EMERGENCY TREE SERVICES - 2026.PDF 4.VII. 278-25 Documents: 278-25 WEST ORANGE - FY27 SUBSTANCE USE DISORDER GRANT RESOLUTION.PDF 4.VIII. 279-25 Documents: 279-25 RESOLUTION AUTHORIZING PAYMENT FOR RUTGERS TB SERVICES.PDF 279-25 NJMS GTBI.WEST ORANGE TB SERVICE AGREEMENT RBHS05105.DOCX (003).PDF 4.IX. 280-25 Documents: 280-25 OVERPAYMENT RESOLUTION - COUNTY BOARD JUDGMENT 2025.PDF 4.X. 281-25 Documents: 281-25 REFUND TAX EXEMPT VETERAN 2025.PDF 4.XI. 282-25 REMOVED 4.XII. 283-25 REMOVED 4.XIII. 284-25 Documents: 284-25 REFUND OVERPAYMENT OF Q4 TAXES.PDF 4.XIV. 285-25 Documents: 285-25 TAX COURT JUDGMENT RESOLUTION.PDF

284-25 REFUND OVERPAYMENT OF Q4 TAXES.PDF 4.XIV. 285-25 Documents: 285-25 TAX COURT JUDGMENT RESOLUTION.PDF 4.XV. 286-25 Documents: 286-25 RESOLUTION - SAFE STREETS FOR ALL.PDF 286-25 FY24 GRANT AGMT. SAFE STREETS AND ROADS FOR ALL GRANT PGM..PDF 286-25 FY24_TERMS-CONDITIONS.PDF 286-25 FY24_EXHIBITS.PDF 4.XVI. 287-25 Documents: 287-25 AUTHORIZING AGREEMENT - STERLING SECURITIES FOR ARMEDUNARMED MUNICIPAL COURT SECURITY - 2026 REDLINED.DOC.PDF 287-25 AGREEMENT FOR ARMED-UNARMED SECURITY OFFICERS FOR MUNICIPA COURT SECURITY - 2026 REDLINED.DOC.PDF 4.XVII. 288-25 Documents: 288-25 EXECUTIVE SESSION.PDF 5. Ordinance(S) On Second And Final Reading 5.I. 2945-25 Documents: 2945-25 ORDINANCE-ALL-WAY STOP INTERSECTION DARTMOUTH RD AT FOREST HILL RD.PDF 2945-25 DARTMOUTH-ROAD-FOREST-HILL-ROAD-ALL-WAY-STOPFINAL.PDF

Township of West Orange CONFERENCE MEETING AGENDA Council Chambers – 66 Main Street Tuesday, December 9, 2025 Meeting No. 27 This is to inform the general public that this meeting is being held in compliance with Section 5 of the Open Public Meetings Act, Chapter 231, Public Law 1975. The annual notice was emailed to the Star Ledger and filed in the Township Clerk’s office on January 7, 2025, and published in the West Orange Chronicle on January 16, 2025. Roll Call –Councilwoman Rudin, Councilwoman Scarpa, Councilwoman Casalino, Council President Krakoviak, Mayor McCartney =========================================================== 6:30 P.M.  Proclamation: 40th Anniversary of CASA of Essex County (Court Appointed Special Advocate Program that works with Essex County Family Court)  Debt Management Plan – John Ditinyak  Council Liaison Announcements  Public Meeting – 7:00 p.m. Agenda is subject to change.

Township of West Orange Debt & Finance Presentation Presented by: John C. Ditinyak, CFO Phoenix Advisors December 9, 2025

The State of the Township’s Debt! • The Township’s net debt as of 2024 is over $171 million! • Net debt has increased by 56% over the last five years! • Payment of debt is 12.5% of the budget! • The Township, recognizing that allowing the debt to increase exponentially places a financial burden on the residents, has developed a long-term debt management plan that will guide this and future councils’ capital planning. 2

Debt Management Plan Goals: • Continue to pay down outstanding debt thereby reducing the related debt services over time • Look to take advantage of lower interest rates, when possible, to permanently finance outstanding notes, thereby reducing interest rate risk • Over time, replace borrowing with “pay-as-you-go” funding using cash rather than credit for capital investment • Carefully manage capital spending with strategic planning to build “pay-go” capability • Achieve strategic success by freeing up millions of debt service dollars annually to support operations, capital investment, and when possible, return value to the taxpayers through increased usage of surplus rather than taxation. 3

What is Municipal Debt? • The Township has both Operating Expenses and Capital Expenses: • Operating Expenses include the salaries and wages of employees, utility expenses, garbage and community programming - just to name a few. Operating Expenses are broadly defined as the ongoing expenses to run the day-to-day Township services. • Capital Expenses are individual purchases for land, infrastructure improvements, equipment, vehicles and major renovation/construction projects. Capital Expenses are typical high value purchases. For that reason, the cost is too great to include the full amount of the purchase in one budget year. • For example, let’s say the Township wants to construct a new public works building. The cost of the construction could be $30M. The Township will go out into the capital markets and issue bonds for $30M so that we have the funds to pay for the project. The bonds will then be repaid, with interest, via annual appropriations in the budget. The repayment schedule follows the useful life of the asset that was purchased to spread the cost over the generations of residents who benefit from the project. In this example, the repayment would be over 25 years. 4

What is Municipal Debt? (cont.) • Municipal debt can best be compared to a resident’s mortgage. Most homeowners do not have the funds to pay cash for their home, so they go to a bank and get a longterm loan (i.e. a mortgage). The homeowner pays principal and interest every month until the loan is repaid. • The interest rate on the loan determines the amount of interest the homeowner will pay over the life of the loan. For example, a 30-year mortgage for $500,000 at 5% will cost the homeowner $465,000 in interest. If the rate moves up 1%, then the homeowner will pay $580,000 in interest over the life of the loan. • Just as market conditions can raise or reduce interest rates for homeowners, the Township’s short and long-term debt is impacted by changes in the municipal bond market. As rates climb, the Township’s debt service expense will increase and will generally be passed along to the taxpayer. • Due to the size and credit rating of municipal entities, municipal bond rates are generally lower than those of a resident. For example, a 30-year mortgage rate is currently 6.25% and a 30-year tax-exempt municipal bond rate is currently 4.25%. 5

Historical Municipal Bond Rates Percentage of Time "AAA" Municipal Rates Have Been Lower than Current Levels (Since 1985) 48% 45% Municipal Rates ° 42% a % Ht 33%33%33%33% | Maturity (Year) | (Year) mma % of Time Rates Have Been Lower Than Current Levels (Since1985) ====Current Municipal Rate Curve ====Average Municipal Rate Curve (Since 1985) 8% 37% 36% 36%37%37%38%38% 38% 38%38% 38%38% 38% 38% 38% 35%, 138% £33,33% 94 % of Time Municipal Rates Have Been Lower Than Current Levels