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COUNTY OF MIDDLESEX, NEW
JERSEY
NOTES TO FINANCIAL STATEMENTS – STATUTORY BASIS
FOR THE YEARS ENDED DECEMBER 31, 2002 AND DECEMBER 31, 2001
1) FORM OF GOVERNMENT
The County of Middlesex is governed by a seven member Board of Chosen
Freeholders who are elected for terms of three years. The Board operates
under the commission form of government. Professional department heads in
County government are appointed by the Board and are responsible to the
chairperson and the committee charged with the specific operation. The
County follows the Civil Service merit system of employment and the
Freeholder Board abides by the regulations of the New Jersey Civil Service
Commission.
2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
GASB Statement No. 14 established the GAAP criteria to be used to
determine which component units should be included in the financial
statements of the oversight entity. As set forth by the accounting
principles and practices prescribed by the Division of Local Government
Services, Department of Community Affairs, State of New Jersey, as noted
below, the financial statements of the County of Middlesex are reported
separately.
The financial statements of the County of Middlesex includes every board,
body, officer or commission supported and maintained wholly or in part by
funds appropriated by the County, as required by the provisions of N.J.S.A.
40A: 5-5. The financial statements, however, do not include the operations
of Middlesex County Joint Health Insurance Fund, the County College, the
Vocational Schools, the Board of Social Services, the Utilities Authority,
the Mosquito Commission and the Improvement Authority which are subject to
separate examination. Moreover, the assets, liabilities and reserves of
the County’s constitutional offices and other various departments,
including the Office of the County Clerk, Surrogate’s Office, Sheriff’s
Office, Mental Health Clinics, Adult Correction Center and Office of the
County Adjuster which result from the specific activity of the individual
office or department and are subject to separate audit, are not combined
with the financial statements of the County of Middlesex.
Description of Funds
The accounting policies of the County of Middlesex conform to the
accounting principles and practices applicable to municipalities and
counties which have been prescribed by the Division of Local Government
Services, Department of Community Affairs, State of New Jersey. Such
principles and practices are designed primarily for determining compliance
with legal provisions and budgetary restrictions and as a means of
reporting on the stewardship of public officials with respect to public
funds. Under this method of accounting, the County of Middlesex accounts
for its financial transactions through the following separate funds:
Current Fund
Represents resources and expenditures for governmental operations of a
general nature, including Federal and State grant funds, except as
otherwise noted.
Trust Fund
Represents receipts, custodianship and disbursement of funds in accordance
with the purpose for which each reserve was created, pursuant to the
provisions of N.J.S.A. 40A: 4-39.
2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
Description of Funds (cont’d)
General Capital Fund
Represents resources, including Federal and State Grants in aid of
construction, and expenditures for the acquisition of general capital
facilities, other than those acquired through the Current Fund, including
the status of bonds and notes authorized for said purposes.
Bond and Interest Fund
Accounts for status of funds transferred to separate accounts for the
purpose of paying matured bonds and notes, together with interest thereon.
General Fixed Asset Account Group
Accounts for fixed assets used in governmental fund type operations for
control purposes. All fixed assets are valued at historical cost or
estimated historical cost if actual historical cost is not available or
any other reasonable basis, provided such basis is adequately disclosed in
the financial statements. Donated fixed assets are valued at their
estimated fair value on the date of donation. No depreciation is recorded
on general fixed assets.
The Governmental Accounting Standards Board (GASB) is the accepted
standards-setting body for establishing government accounting and
financial reporting principles. GASB’s Codification of Governmental
Accounting and Financial Reporting Standards recognizes three fund
categories and two account groups as appropriate for the accounting and
reporting of the financial position and results of operations in
accordance with generally accepted accounting principles. This structure
of funds and account groups differs from the organization of funds
prescribed under the regulatory basis of accounting utilized by the
County. The resultant presentation of financial position and results of
operations in the form of financial statements is not intended to present
the general-purpose financial statements required by GAAP.
Basis of Accounting
The accounting principles and practices prescribed for municipalities and
counties by the Division differ in certain respects from Generally
Accepted Accounting Principles (GAAP) applicable to local government
units. The more significant differences are as follows:
Revenues
Revenues are recorded as received in cash except for statutory
reimbursements and grant funds, which are due from other governmental
units. State and Federal grants, entitlements and shared revenues received
for operating purposes are realized as revenues when anticipated in the
County budget. Receivables for property taxes are recorded with offsetting
reserves within the Current Fund. Other amounts that are due to the County
which are susceptible to accrual are recorded as receivables with
offsetting reserves. These reserves are liquidated and revenues are
recorded as realized upon receipt of cash. GAAP requires the recognition
of revenues for general operations in the accounting period in which they
become available and measurable.
Expenditures
For purposes of financial reporting, expenditures are recorded as “paid or
charged” or “appropriation reserves”. Paid or charged refers to the County
“budgetary” basis of accounting. Generally, these expenditures are
recorded when an amount is encumbered for goods or services in conjunction
with the
2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
Basis of Accounting (cont’d)
Expenditures (cont’d)
encumbrance accounting system. Reserves for unliquidated encumbrances at
the close of the year are reported as a cash liability. Encumbrances do
not constitute expenditures under GAAP. Appropriation reserves refers to
unexpended appropriation balances at the close of the year. Appropriation
reserves are automatically created and recorded as a cash liability,
except for amounts, which may be canceled by the governing body.
Appropriation reserves are available until lapsed at the close of the
succeeding year, to meet specific claims, commitments or contracts
incurred and not recorded in the preceding fiscal year. Lapsed
appropriation reserves are recorded as income.
Generally, unexpended balances of budget appropriations are not recorded
as expenditures under GAAP. For the purpose of calculating the results of
Current Fund operations, the regulatory basis of accounting utilized by
the County requires that certain expenditures be deferred, and raised as
items of appropriation in budgets of succeeding years. These deferred
charges include the two general categories of overexpenditures and
emergency appropriations. Overexpenditures occur when expenditures
recorded as “paid or charged” exceed available appropriation balances.
Emergency appropriations occur when, subsequent to the adoption of a
balanced budget, the governing body authorizes the establishment of
additional appropriations based on unforeseen circumstances or for other
special purposes as defined by statute.
Compensated Absences
The County records expenditures for earned, but unused vacation and sick
leave in the accounting period that the payments are made to the employee
pursuant to established personnel policy procedures. GAAP requires that
expenditures be recorded in the governmental (Current) fund in the amount
that would normally be liquidated with available financial resources, and
that expenditures be recorded in the enterprise fund on a full accrual
basis.
Inventories of Supplies
The cost of inventories of supplies for all funds is recorded as
expenditures at the time individual items are purchased. The cost of
inventories is included on the Current Fund balance sheet, for inventory
that has been established and reported at year-end with an offsetting
reserve. Although the expenditure method of accounting for purchases of
supplies is in accordance with GAAP, the cost of inventory on hand at the
close of the year should be reported on the balance sheet with an
offsetting reserve for conformity with GAAP.
Lease Purchase Agreements
The County’s participation in lease purchase agreements are reflected by
the annual appropriation of minimum lease payments within the County’s
operating budgets. The terms of the lease, including total future minimum
lease payments are disclosed in the Notes to Financial Statements. Capital
lease amounts payable are recorded within the General Capital Fund. GAAP
requires the value of the lease purchase agreement to be recorded in the
general fixed asset account group and the recording of the non-current
lease payments in the long-term debt account group.
Self Insurance Reserves
Charges to self-insurance reserves are recorded when payments of claims
and related expenses are made. Increases to self-insurance reserves are
recorded from budgetary appropriations in the accounting period in which
budgetary expenditures are recorded. Earnings on investments and
miscellaneous reimbursements are credited to reserves when received in
cash. GAAP requires that liabilities for incurred claims are recorded as
determined actuarially, and that operating transfers to self-insurance
funds not exceed the amount determined.
2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
Basis of Accounting (cont’d)
Interfunds
Interfund receivables in the Current Fund are recorded with offsetting
reserves, which are created by charges to operations. Income is recognized
in the year receivables are liquidated. GAAP does not require the
establishment of an offsetting reserve. Interfund receivables in the other
funds are not offset by reserves.
Fixed Assets
Property and equipment acquired by the Current and the General Capital
Funds are recorded as expenditures at the time of purchase and are not
capitalized in their own respective funds. Such assets are recorded at
cost in the General Fixed Assets Group of Accounts. The values of County
owned assets acquired prior to the implementation of the fixed asset
accounting system were recorded at cost, estimated cost, estimated
replacement value and assessed valuation for real property. Depreciation
is not recorded an operating expense of the general government (Current
Fund).
General Fixed Assets
Technical Accounting Directive No. 85-2, issued by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey,
established a mandate for fixed asset accounting by municipalities and
counties, effective December 31, 1985. Assets acquired through December
31, 1985 were valued based on actual costs, where available, and other
methods, including current replacement value and estimated historical
costs. Assets acquired subsequent to December 31, 1985 were valued based
on actual costs. The initial inventory for assets acquired through
December 31, 1985 utilized a $1,000 threshold. For all assets acquired
subsequent to December 31, 1985, the threshold is $300. Improvements other
than buildings, which consist of “infrastructure” fixed assets such as
roads, bridges, curbs and gutters, streets, sidewalks, drainage systems,
etc., are excluded from the general fixed account group. Depreciation is
not recorded in the general fixed asset account group. Lease Purchase
Agreements have been recorded for amounts authorized and reported and
classified in General Fixed Assets under Lease Purchase Agreements
(completed and in progress). The General Fixed Asset Account Group at
December 31, 2001 and 2000 does not include Roosevelt Hospital, as the
facility was transferred to the M.C.I.A., Note 18.
Disclosures about Fair Value of Financial Instruments
The following methods and assumptions were used to estimate the fair value
of each class of financial instruments for which it is practicable to
estimate that value:
Cash and cash equivalents and short-term investments: The carrying amount
approximates fair value because of the short maturity of those
instruments.
Long-term investments: The fair value of long-term investments are
estimated based on quoted market prices for those or similar investments.
Additional information pertinent to the value of these investments is
provided in Note 7.
Long-term debt: The County’s long-term debt is stated at face value. The
debt is not traded and it is not practicable to determine its fair value
without incurring excessive cost. Additional information pertinent to the
County’s long-term debt is provided in Notes 4 and 14.
2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
Basis of Accounting (cont’d)
Recent Accounting Standards
In December 1998, the Government Accounting Standards Board (GASB) issued
Statement No. 33, “Accounting and Financial Reporting for Nonexchange
Transactions, effective for periods beginning after June 15, 2000. The
Statement establishes standards for nonexchange transactions involving
financial or capital resources that principally focus on the timing of
recognition of nonexchange transactions.
In June 1999, GASB issued Statement No. 34, Basic Financial Statements and
Managements Discussion and Analysis for State and Local Governments. The
Statement establishes new financial reporting requirements for state and
local governments throughout the United States. The provisions of this
Statement are effective in phases depending upon the local units total
annual revenues. Governments with total annual revenues of $100 million or
more (Phase 1) are to apply the Statement for periods beginning after June
15, 2001.
GASB issued Statement 35 in November, 1999. The Statement establishes
accounting and financial reporting standards for public colleges and
universities within the financial reporting guidelines of GASB Statement
34.
GASB issued Statement 36 in April, 2000. The Standard amends certain
provisions of Statement No. 33 with regards to the timing of revenue
recognition between provider and recipient governments.
In June 2001, GASB issued Statement No. 37, Basic Financial Statement and
Managements Discussion and Analysis for State and Local governments;
Omnibus an amendment of GASB Statements No. 21 and No. 34. This Statement
amends Statement 21 due to changes to the fiduciary fund structure
required by Statement 34. In addition Statement No. 37 provides
clarification and modifies other provisions with respect to Statement 34.
GASB issued Statement No. 38 Certain Financial Statement Note Disclosures
in June, 2001. The Statement modifies certain financial statement
disclosure requirements. This statement is generally effective when the
provisions of Statement 34 are required to be implemented.
The County does not prepare its financial statements in accordance with
generally accepted accounting principles. The adoption of these new
standards will not adversely effect the reporting on the County’s
financial condition.
Comparative Data
Comparative total data for the prior year has been presented in order to
provide an understanding of changes in the County’s financial position and
operations. However, comparative data has not been presented in each of
the statements since their inclusion would make the statement unduly
complex and difficult to read.
Prior Period Adjustments and Reclassifications
Certain reclassifications have been made to the 2001 financial statements
to conform to classifications in 2002.
3) DEFERRED COMPENSATION TRUST FUND
The County of Middlesex has established a deferred compensation plan
pursuant to Section 457 of the Internal Revenue Code and under the
provisions of N.J.S.A. 43:15B-1. The plan includes the employees of
Middlesex County, Middlesex County Board of Social Services, and the
Middlesex County Mosquito Extermination Commission.
The plan is an arrangement whereby a public employer may establish a plan
to permit its employees to voluntarily authorize a portion of their
current salary to be withheld and invested in one or more of the types of
investments permitted under the governing regulations. The County has
engaged four private contractors to administer the plan. Contributions are
recognized when received by the administrators, withdrawals and
administrative fees when paid by the administrators, and earnings when the
company with which the funds are invested notifies the administrators.
Statutory and regulatory requirements governing the establishment and
operation of deferred compensation plans have been codified in the New
Jersey Administrative Code as N.J.A.C. 5:37. The more significant of these
provisions include no personal liability to the employer for negative
return on investments, retention of assets by the employer, eligible
investment types, and the requirement for an independent review of all
program funds by a private contractor retained to administer the program.
Pursuant to revisions to the Federal Internal Revenue Code, the State has
amended the deferred compensation plan enabling statute. During 1998, the
County implemented the required amendments to the Deferred Compensation
Plan for compliance with federal and state regulations.
4) DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITIONS
Summary of County Debt
Year 2002 Year 2001 Year 2000
Issued:
General Bonds and Notes $288,003,000 $304,376,000 $223,709,000
Loans 6,446,808 6,038,689 3,244,264
Net Debt Issued 294,449,808 310,414,689 226,953,264
Authorized but not issued:
General Bonds and Notes 138,108,140 89,846,132 111,649,536
Bonds and Notes Issued and Authorized
but not Issued 432,557,948 400,260,821 338,602,800
Less Bonds issued and authorized but not
Issued – County College CH. 12 5,527,760 5,087,140 4,071,520
Net Bonds and Notes Issued and Authorized
but not issued $427,030,188 $395,173,681 $334,531,280
4) DEBT, DEBT SERVICE AND STATUTORY DEBT CONDITIONS (cont’d)
Bonds Issued - 2002
During 2002, the County issued $32,294,000 General Obligation Bonds,
Series 2002 A & B, dated January 15, & June 15, 2002. The Bonds have
principal maturities ranging from $175,000 due on January 15, 2003 through
final maturity of $900,000 due on June 15, 2017. The interest rate ranges
from annual rates of 3.00% through 4.75%. The Bonds were issued to finance
General Improvements, County College, County Vocational Schools, and
various open space capital improvements.
Bonds Issued - 2001
During 2001, the County issued $75,250,000 General Obligation Bonds,
Series 2001 A & B, dated January 15, & June 15, 2001. The Bonds have
principal maturities ranging from $85,000 due on January 15, 2002 through
final maturity of $2,400,000 due on June 15, 2016. The interest rate
ranges from annual rates of 4.00% through 6.20%. The Bonds were issued to
finance General Improvements, County College, and County Vocational
Schools.
Loans Issued - 2002
During 2002, the County participated in the Green Trust Loan Program
administered by the State of New Jersey. The Green Trust Program Loan has
been recorded within the General Capital Fund in the amount of $6,446,808.
Analysis of Balance – By Project – December 31, 2002:
Old Bridge Park Acquisition $3,244,264
Bank of China Property Acquisition 2,202,544
Sewaren Marine Park Development 1,000,000
$6,446,808
At the date of this report, the State has provided the County with loan
amortization schedules for repayment of the Bank of China Property
Acquisition Property loan and Sewaren Marin Park Development loan. The
loan schedules commenced in 2002 and 2003, respectively with final
maturities in 2021, and bear a 2% interest rate. The schedule for the
remaining loan has not been provided.
Loans Issued - 2001
During 2001, the County participated in the Green Trust Loan Program
administered by the State of New Jersey. The Green Trust Program Loan has
been recorded within the General Capital Fund in the amount of $6,038,689.
As of the date of this report, the State of New Jersey has not provided a
loan amortization schedule to the County for the $3,244,264 loan issued in
2000.
Note 4 continued on excel (6 pages)
5) FUND BALANCE APPROPRIATED
Fund balance for the Current Fund at December 31, 2002 was reported in the
amount of $19,314,047, of which $6,000,000 was appropriated and included
as anticipated revenue for the year ending December 31, 2003.
Fund balance for the Current Fund at December 31, 2001 was reported in the
amount of $17,544,931, of which $4,500,000 was appropriated and included
as anticipated revenue for the year ending December 31, 2002.
.
6) INVENTORY – MATERIALS AND SUPPLIES
For the years ended 2002 and 2001, the County has reported Inventory on
the balance sheet of the Current Fund. The Inventory is reported with an
offsetting reserve. The amount reported is as follows:
2002 2001
Inventory (Current Fund)
Materials & Supplies $1,414,535 $1,304,355
7) CASH, CASH EQUIVALENTS AND INVESTMENTS
Deposits
New Jersey statutes permit the deposit of public funds in institutions
located in New Jersey which are insured by the Federal Deposit Insurance
Corporation (FDIC), or by any other agencies of the United States that
insures deposits or the State of New Jersey Cash Management Fund.
New Jersey statutes require public depositories to maintain collateral for
deposit of public funds that exceed insurance limits as follows:
The market value of the collateral must equal 5 percent of the average
daily balance of public funds;
or
If the public funds deposited exceed 75 percent of the capital funds of
the depositor, the depository must provide collateral having a market
value equal to 100 percent of the amount exceeding 75 percent.
All collateral must be deposited with the Federal Reserve Bank, the
Federal Home Loan Bank Board or a banking institution that is a member of
the Federal Reserve System and has capital funds of not less than
$25,000,000. The State of New Jersey Cash Management Fund is authorized by
statute and regulation of the State Investment Council to invest in fixed
income and debt securities, which mature within one year.
Collaterialization of Fund investments is generally not required. “Other
Than State” participants contribute one tenth of one percent per year of
the value of the aggregate units owned by them to establish a Reserve
Fund, which is supplemented by the proportional interest of “Other Than
State” participants in gains on investment transaction realized. The
Reserve Fund is available to cover losses of “Other Than State”
participants occasioned by the bankruptcy of an issuer of an investment
held by the Fund and losses on sales of securities.
7) CASH, CASH EQUIVALENTS AND INVESTMENTS (cont’d)
Deposits (cont’d)
At December 31, 2002, the County’s recorded cash, cash equivalents and
investments amounted to $157,477,143, and an amount of $160,810,883 was on
deposit with the respective institutions, excluding Deferred Compensation
Fund and Bond Interest Fund, of which cash, cash equivalent and
investments are held by the respective Trustees.
At December 31, 2001, the County’s recorded cash, cash equivalents and
investments amounted to $170,464,216, and an amount of $176,398,129 was on
deposit with the respective institutions, excluding Deferred Compensation
Fund and Bond Interest Fund, of which cash, cash equivalent and
investments are held by the respective Trustees.
An Analysis of the County’s cash, cash equivalents and investments at
December 31, 2002 and 2001, by Fund/Category (Type) is as follows:
By Fund:
2002 2001
Fund Amount Amount
Current $ 67,157,979 $56,055,982 Trust 47,699,363 38,518,677
General Capital 42,619,801 75,890,157
Total Cash, Cash Equivalents & Investments $157,477,143 $170,464,816
By Category (Type)
2002 2001
Cash & Cash Equivalents: Amount Amount
Change Fund $ 600 $ 600
Demand Accounts 10,184,206 5,393,976
Savings, Money Market / N.O.W. 14,967,026 15,837,276
State of NJ Cash Mgmt. Fund 132,306,363 149,214,016
Total Cash & Cash Equivalents 157,458,195 170,445,868
Investments:
Custodial Agreement - Forward Delivery Agreement 18,948 18,948
Total Cash, Cash Equivalents & Investments $157,477,143 $170,464,816
7) CASH, CASH EQUIVALENTS AND INVESTMENTS (cont’d)
Investments
New Jersey statutes establish the following securities as eligible for the
investment of County funds:
1. Bonds or other obligations of the United States of America or
obligations guaranteed by the United States;
2. Government money market mutual fund;
3. Any obligation that a federal agency or a federal instrumentality has
issued in accordance with an act of Congress, which security has a
maturity date not greater than 397 days from the date of purchase,
provided such obligations bear a fixed rate of interest not dependent on
any index or other external factor;
4. Bonds or other obligations of the local unit or bonds or other
obligations of school districts of which the local unit is a part or
within which the school district is located;
5. Bonds or other obligations, having a maturity date of not more than 397
days from the date of purchase, approved by the Division of Investment in
the Department of the Treasury for investment by local units;
6. Local Government investment pools;
7. Deposits with the State of New Jersey Cash Management Fund established
pursuant to section 1 of P.L. 1997, c. 281 (C.52:18A-90.4); or
8. Agreements for the repurchase of fully collateralized securities, if:
a. the underlying securities are permitted investments pursuant to
paragraphs (1) and (3);
b. the custody of collateral is transferred to a third party;
c. the maturity of the agreement is not more than 30 days;
d. the underlying securities are purchased through a public depository as
defined in section 1 of P.L. 1970, c. 235 (C.19:9-41) and for which a
master repurchase agreement providing for the custody and security of
collateral is executed.
All bank deposits and investments as of the balance sheet date, are
classified as to credit risk by the three categories described below:
Category 1: Includes investments that are insured or registered or for
which the securities are held by the County or its agent in the County’s
name.
Category 2: Includes uninsured and unregistered investments for which the
securities are held by the bank’s or dealer’s trust department or agent in
the County’s name.
Category 3: Includes uninsured and unregistered investments for which the
securities are held by the bank or dealer, or by its trust department or
agent, but not in the County’s name. Investments in the New Jersey Cash
Management Fund are included in this category.
7) CASH, CASH EQUIVALENTS AND INVESTMENTS (cont’d)
Investments (cont’d)
As of December 31, the County’s deposits and investments are summarized as
follows:
2002 2001
Category Amount Amount
1 - - 2 - - 3 $160,810,883 $176,398,129
During the period ended December 31, 2002 and 2001, the County held
investments in the State of New Jersey Cash Management Funds. Under the
criteria established in Governmental Accounting Standards Board Statement
No. 9, the year end balances in a New Jersey Cash Management Fund are
considered to be cash equivalents under GAAP.
The investment recorded in the general-purpose financial statements have
been recorded at the carrying amount The difference between the carrying
amount and market value is not material to the general- purpose financial
statements.
New Jersey Cash Management Fund – All investments in the Fund are governed
by the regulations of the Investment Council, which prescribe specific
standards designed to insure the quality of investments and to minimize
the risks related to investments. In all the years of the Division of
Investment’s existence, the Division has never suffered a default of
principal or interest on any short-term security held by it due to the
bankruptcy of a securities issuer; nevertheless, the possibility always
exists, and for this reason a reserve is being accumulated as additional
protection for the “Other-than-State” participants. In addition to the
Council regulations, the Division sets further standards for specific
investments and monitors the credit of all eligible securities issuers on
a regular basis.
As of December 31, 2002 and 2001, the County had $132,306,363 and
$149,214,016, respectively, recorded as investments on deposit with the
New Jersey Cash Management Fund.
The County authorized participation in a Forward Treasury Purchase
Agreement dated March 20, 1995. The Agreement requires the County to
deposit funds with the Custodian in the designated Custodial Account.
Accordingly, the County authorizes the Custodian to purchase qualified
securities. On each respective payment date, the County shall be able to
withdraw the related deposit amounts in the manner set forth in the
Forward Delivery Agreement. The County receives revenue/interest up front
upon execution of the Agreement. The investment in the Forward Treasury
Purchase Agreement at December 31, 2002 and 2001 is recorded in the amount
of $18,948. During 2000, the County has amended the Agreement for periods
extending to February, 2004 and 2005.
8) ASSESSMENT AND COLLECTION OF PROPERTY TAXES
New Jersey statutes require that taxable valuation of real property be
prepared by the local unit tax assessor as of October 1 in each year and
filed with the County Board of Taxation by January 10th of the following
year. Upon the filing of certified adopted budgets by the Local Units,
Local School District, County and Special Districts, the tax rate is
struck by the County Tax Board based on the certified amounts in each of
the taxing districts for collection to fund the budgets. Pursuant to
statute, this process is to be completed on or before May 3, with a
completed duplicate of the tax rolls to be delivered to the local unit tax
collector on or before May 13th. New Jersey statutes require that each
local unit provide for sufficient anticipated cash receipts equal to the
“lawful yearly expenditure” which includes the total amount of property
taxes to be raised by the local unit that is due to the County.
9) PENSION AND RETIREMENT PLANS
Employees of the County of Middlesex are enrolled in one of the two cost
sharing multiple-employer public employee retirement systems: the Public
Employees Retirement System (PERS) or the Police and Firemen’s Retirement
System (PFRS). The Division of Pensions in the Department of Treasury,
State of New Jersey, administers the PERS and PFRS plans. The plans are
funded annually based on the projected benefit method with aggregate level
normal cost and frozen initial unfunded accrued liability. The plans,
which cover public employees throughout the state, do not maintain
separate records for each reporting unit and, accordingly, the actuarial
data for the employees of the County who are members of the plans are not
available. The contributions in 2002 and 2001 were $4,054,724 and
$3,825,089 for PERS and $4,319,599 and $4,980,812 for PFRS, respectively,
which includes contributions from the employees that are remitted on a
quarterly basis.
10) ACCRUED SICK AND VACATION BENEFITS
The County of Middlesex has established uniform personnel policy
procedures which set forth the terms under which an employee may
accumulate unused benefits, as follows:
Sick Leave
Sick leave for permanent employees accumulates in accordance with the
terms of approved contracts. Any amount of sick leave allowance not used
in a calendar year accumulates to the employee’s credit to be used if and
when needed. Upon normal retirement, employees are entitled to receive a
lump sum payment as supplemental compensation for one-half of earned and
unused accumulated sick leave to their credit on the effective date of
retirement, up to a maximum of $15,000. In addition, the County offers a
sick leave buyout option, on an annual basis, in the amount of one day’s
pay for every three days credited and not used, to a maximum of five days
paid, so long as the employee did not use more than five sick days in the
current year.
10) ACCRUED SICK AND VACATION BENEFITS (con’t)
Vacations
Vacation pay for permanent employees also accumulates in accordance with
the terms of approved contracts. Vacation days are to be taken in the year
earned and do not accumulate, except that vacation time earned in the
current year may be carried over to the next succeeding year only.
The County maintains current records of each employee’s status relating to
earned and unused sick and vacation pay. At December 31, 2002 and 2001,
the estimated cost of unused sick pay is calculated to be $8,331,460 and
$8,512,221 respectively. At December 31, 2002 and 2001, the estimated cost
of unused accrued vacation pay is calculated to be $3,967,305 and
$3,256,338 respectively. Management indicates that this amount
approximates the calculation as required by GASB No. 16, however, the
methodology utilized does not fully meet the recognition and measurement
criteria as set forth by the GASB. No estimate is provided for the
approximate current cost of unused vacation pay based upon the policy
restrictions on accumulations. As disclosed in Note 2, the County makes
provision for the lump sum payment of benefits in each year’s operating
budget, based on cost projections for employees nearing normal retirement
eligibility. In order to partially fund these benefits, the County has
established a trust fund entitled “Supplemental Compensation at
Retirement,” and each year an annual appropriation is raised in the
operating budget and transferred to the fund. In 2002, $25,000 was
appropriated and 2001, $250,000 was appropriated and added to the fund and
$175,576 was disbursed to employees during 2002 while $117,199 was
disbursed to employees during 2001. The 2003 and 2002 budget appropriation
equals $100,000 and $25,000 respectively.
11) LEASES
The County has purchased various office and other equipment which is being
capitalized as installment purchases of fixed assets in accordance with
Technical Accounting Directive No. 85-2.
The County has entered into lease commitments for the rental of various
office space, storage space and parking facilities throughout the County
of Middlesex.
The future annual operating lease payment due over the remaining terms of
the leases for the next five succeeding years is as follows:
2002 2001
Year Amount Amount
2002 2,491,899
2003 2,580,371 2,591,143
2004 2,618,123 2,539,526
2005 2,583,201 2,546,598
2006 2,592,902 2,550,006
2007 2,600,299
12) RISK MANAGEMENT
In response to rising premiums for traditional commercial insurance
coverage, the County maintains a self-insurance risk management program
for all liability claims including, but not limited to, general, police
professional, hospital professional, public officials, and automobile
liability. A commercial excess liability policy is in place to cover
catastrophic type claims, which would include any claim exceeding the
policy’s $350,000 self- insurance retention. A self-insurance Liability
Fund has been established to fund those claims below $350,000. The County
of Middlesex together with the autonomous agencies; County College, Board
of Social services, Improvement Authority, Mosquito Extermination
Commission comprising the Middlesex County Insurance Commission. The
Middlesex County Insurance Commission provides liability coverage to above
named autonomous agencies through Self-Insurance Liability Fund and Excess
Liability policy. The Middlesex County Insurance Commissioners retain the
services of an actuary to establish the amount of cash reserves deemed
necessary to pay claims.
The County also maintains a self-insured Worker’s Compensation Fund for
all workers compensation claims with the exception of these claims which
occurred during the period April 3, 1998 to June 2, 2000. Claims which
occurred between April 3, 1998 and June 2, 2000 are covered in total by a
commercial primary Workers Compensation Insurance policy. Claims occurring
after June 2, 2000 are self-insured, however, a commercial excess Worker’s
Compensation policy is in place, subject to a $250,000 Self-Insurance
Retention, to cover a $250,000 Self-Insurance Retention, to cover these
claims.
The financial statements do not reflect any charges for claims incurred
but not reported and any reported incurred claims that remain unpaid at
December 31, 2002 for the respective funds.
The Commissioners assessed the following participants for 2002 and 2001,
as follows:
2002 2001
AGENCY TOTAL TOTAL
County College $131,536 $118,664 Board of Social Services 78,165 90,257
County Improvement Authority
(Excluding Tamarack) 54,448 50,588
$264,149 $259,509
The respective agency assessments have been computed by an actuarial
analysis.
The estimated liability, as established by the third party administrator,
for claims incurred and reported for the Self-Insurance Fund at December
31, 2002 and 2001 totaled $2,013,737 and $2,062,546, respectively. The
County has appropriated funds in the 2003 and 2002 Budgets, in accordance
with this funding plan.
The County has purchased commercial public entity excess liability
insurance for general liability and automobile liability coverage in
effect at December 31, 2002 and 2001, was as follows:
Limits of Insurance:
Each Accident or
Occurrence Limit $ 15,000,000
Policy Aggregate Limit 30,000,000
Self-Insured Limit Retention 350,000
12) RISK MANAGEMENT (cont’d)
During 2002 and 2001, the County maintained two individual excess
healthcare/professional liability coverages, combined as follows:
Limit of Liability:
A. 100% of the loss in excess of all underlying Insurance not to exceed,
subject to retention:
B. $5,000,000 per occurrence or:
C. $7,000,000 Annual Aggregate (as defined)
Retention Limits
per medical incident $ 250,000
annual aggregate 750,000
YEAR ENDED DECEMBER 31, 2002.
The estimated liability, as established by the third party administrator,
for claims incurred and reported for the Worker’s Compensation Fund at
December 31, 2002 is $4,195,541. This represents the run-off claims on
file prior to the County purchase of commercial coverage policy for
worker’s compensation claims prior to April, 1998 and after June 2, 2000.
The County has purchased commercial coverage for worker’s compensation for
the subsequent period: April 3, 1998 – June 2, 2000.
The County has opted to self insure worker’s compensation effective for
the period commencing June 2, 2000. The above number includes claims
incurred after June 2, 2000.
The County maintains a self-insurance fund for employment compensation
insurance costs. The County remits to the State of New Jersey for costs
incurred, on a quarterly basis, as determined and billed by the State.
The activity within each of the Self-Insurance Fund reserves, the Worker’s
Compensation Fund reserves and Unemployment Compensation Fund reserves for
the year ended December 31, 2002 were as follows:
Balance Increases to Decrease to Balance
12/31/01 Reserves Reserves 12/31/02
Self-Insurance Fund $8,669,744 $641,151 $1,665,327 $7,645,568
Worker’s Comp. Fund 4,108,397 824,490 1,889,613 3,043,274
Unemploy. Comp. Fund 440,206 141,336 155,756 425,816
12) RISK MANAGEMENT (cont’d)
YEAR ENDED DECEMBER 31, 2001.
The estimated liability, as established by the third party administrator,
for claims incurred and reported for the Worker’s Compensation Fund at
December 31, 2001 is $4,381,948. This represents the run-off claims on
file prior to the County purchase of commercial coverage policy for
worker’s compensation claims prior to April, 1998. The County has
purchased commercial coverage for worker’s compensation for the subsequent
period: April 3, 1998 – June 2, 2000.
The activity within each of the Self-Insurance Fund reserves, the Worker’s
Compensation Fund reserves and Unemployment Compensation Fund reserves for
the year ended December 31, 2001 were as follows:
Balance Increases to Decrease to Balance
12/31/00 Reserves Reserves 12/31/01
Self-Insurance Fund $8,603,771 $1,115,574 $1,049,601 $8,669,744
Worker’s Comp. Fund 4,680,705 2,263,110 2,835,418 4,108,397
Unemploy. Comp. Fund 665,983 157,645 383,422 440,206
Increases to Reserves represents amounts received from participant
assessments, charges to the County Operating Budget, interest on
investments and deposits, subrogation’s and third party reimbursements and
refunds. Decreases to Reserves represent the payment on adjudicated or
settled claims, asserted costs and administrative fees and charges.
The County of Middlesex participates in the Middlesex County Joint Health
Insurance Fund (MCJHIF). The MCJHIF consists of eight (8) County agencies
within Middlesex County, representing a total of 5,158 and 5,263 retirees,
cobra participants and active employees as of December 31, 2002 and 2001
respectively. The MCJHIF’s purpose is to provide health care benefits to
all eligible participants for medically necessary services covered under
the health plan choices offered. The Fund is regulated by the State of New
Jersey Department of Insurance as provided by statute and regulations and
is subject to reporting requirements mandated by the State.
The assessments of the participating members are determined and certified
by the actuary and approved by a majority vote of the Fund Commissioners.
The Commissioners of the MCJHIF have the authority, by majority vote, to
levy on the participating local units an additional assessment to assure
the payment of the Funds’ obligations.
Changes in the MCJHIF’s fund balance for each fund year at December 31, is
as follows:
At December 31,
2002 2001
Fund/Surplus Fund/Surplus
Fund (Deficit) (Deficit)
Year Balance Balance
2002 $ 35,429
2001 (209,999) $ 176,906
2000 129,338
12) RISK MANAGEMENT (cont’d)
The Fund uses reinsurance agreements to reduce its exposure to large
losses on certain types of insured events. Reinsurance may allow recovery
of a portion of losses from reinsurers.
Accordingly, the financial statements of the County do not report or
reflect its participatory share of fund claims, expenditures or fund
(deficit) balance at December 31, 2002 and 2001.
13) POST RETIREMENT HEALTH CARE BENEFITS
The County provides health benefits through the Middlesex County Joint
Health Insurance Fund to certain retirees and their dependents, as
follows:
Retired employees pay the full cost of coverage under the Plan, in most
cases. However, the former employer may assume that cost if the retired
employee meets certain requirements. If the retired employee is paying the
full cost of coverage, the monthly premiums will be billed to such retired
employee on a monthly basis or as otherwise established by the Middlesex
County Joint Health Insurance Fund. The Plan Sponsor has agreed to pay
retiree coverage if:
1. the retiree receives retirement benefits from a State of New Jersey
administered retirement system; and,
2. he or she has 25 or more years of service credited in that retirement
system or was a participant in a State of New Jersey Early Retirement
Incentive Program; or
3. he or she retired on an approved disability retirement (regardless of
years of service) in that retirement system;
4. the employer has agreed to pay for coverage of a surviving spouse of a
retiree who qualified under the provision listed above.
At December 31, 2002, approximately 614 retirees, representing the County
and Roosevelt Care Center, were receiving non-contributory health coverage
benefits at an estimated annual cost to the County of approximately
$4,310,373.
At December 31, 2001, approximately 581 retirees, representing the County
and Roosevelt Care Center, were receiving non-contributory health coverage
benefits at an estimated annual cost to the County of approximately
$3,125,400.
14) COUNTY-GUARANTEED CAPITAL EQUIPMENT LEASE REVENUE BONDS
AND OTHER ISSUES
2002
The Middlesex County Improvement Authority has outstanding various issues
of County Guaranteed Equipment Lease Revenue Bonds and various other
County-Guaranteed Bonds. These Bonds are serviced through rental payments
of the governmental entities that participate in the equipment lease
program. In addition to these bonds being secured by a lien on the pledged
property, they are further secured by a full and unconditional guarantee
of the County of Middlesex to pay, when due, the principal of, redemption
premium, if any, and interest on the Bonds. Total outstanding Improvement
Authority Equipment Lease Revenue Bonds and other County-Guaranteed Bonds,
guaranteed by the County of Middlesex at December 31, 2002 amounted to
$141,895,000, and are listed below:
Original Bonds
Issue Payable Amount Dec.31,2002
Capital Equipment Lease Revenue Bonds,
Series 1992 $ 7,070,000 $ 310,000
Series 1993 5,395,000 210,000
Series 1994 9,915,000 2,080,000
Series 1995 8,495,000 1,075,000
Series 1996 8,635,000 1,910,000
Series 1997 10,460,000 2,705,000
Series 1998 10,210,000 4,410,000
Series 1999 9,450,000 4,310,000
Series 2000 13,515,000 9,015,000
Series 2001 9,755,000 9,055,000
Series 2002 10,290,000 10,290,000
Tamarack Golf Course Project, Series 1996 7,500,000 6,195,000
Capital Improvement Revenue Bonds, Series 1996
(County Share) 5,965,000 4,290,000
Piscataway Golf Course Project, Series 1998 5,000,000 4,625,000
Open Space Trust Revenue Bonds, Series 1998 30,000,000 25,830,000
Open Space Trust Revenue Bonds, Series 1999 19,295,000 17,400,000
Middlesex County Educational Services Comm., Series 1994 9,000,000 545,000
Middlesex County Educational Services Comm., Series 1999 7,455,000
7,150,000
Capital Improvement Revenue Bonds, Series 1999 9,535,000 8,510,000
The Meadows at Middlesex Golf Course 6,500,000 6,165,000
Middlesex County Educational Services Comm., Series 2000 16,170,000
15,815,000
$141,895,000
14) COUNTY-GUARANTEED CAPITAL EQUIPMENT LEASE REVENUE BONDS
AND OTHER ISSUES (con’t)
2001
The Middlesex County Improvement Authority has outstanding various issues
of County Guaranteed Equipment Lease Revenue Bonds and various other
County-Guaranteed Bonds. These Bonds are serviced through rental payments
of the governmental entities that participate in the equipment lease
program. In addition to these bonds being secured by a lien on the pledged
property, they are further secured by a full and unconditional guarantee
of the County of Middlesex to pay, when due, the principal of, redemption
premium, if any, and interest on the Bonds. Total outstanding Improvement
Authority Equipment Lease Revenue Bonds and other County-Guaranteed Bonds,
guaranteed by the County of Middlesex at December 31, 2001 amounted to
$144,830,000, and are listed below:
Original Bonds
Issue Payable Amount Dec. 31, 2001
Capital Equipment Lease Revenue Bonds,
Series 1992 $ 7,070,000 $ 555,000
Series 1993 5,395,000 345,000
Series 1994 9,915,000 2,760,000
Series 1995 8,495,000 1,285,000
Series 1996 8,635,000 2,370,000
Series 1997 10,460,000 3,885,000
Series 1998 10,210,000 5,525,000
Series 1999 9,450,000 6,880,000
Series 2000 13,515,000 11,760,000
Series 2001 9,755,000 9,755,000
Tamarack Golf Course Project, Series 1996 7,500,000 6,520,000
Capital Improvement Revenue Bonds, Series 1996
(County Share) 5,965,000 4,655,000
Piscataway Golf Course Project, Series 1998 5,000,000 4,815,000
Open Space Trust Revenue Bonds, Series 1998 30,000,000 26,930,000
Open Space Trust Revenue Bonds, Series 1999 19,295,000 18,055,000
Middlesex County Educational Services Comm., Series 1999 7,455,000
7,195,000
Capital Improvement Revenue Bonds, Series 1999 9,535,000 9,035,000
The Meadows at Middlesex Golf Course 6,500,000 6,335,000
Middlesex County Educational Services Comm., Series 2000 16,170,000
16,170,000
$144,830,000
Note 15 continued on excel
16) LEASE AGREEMENTS RECEIVABLE
The County reports the following lease agreements within the General
Capital Fund balance sheet as at December 31, 2002 and 2001:
2002 2001 Final
Amount Amount Payment Lessee Recorded Recorded Date
County of Somerset, NJ $ 4,154,349 $ 4,580,363 May 1, 2016
City of New Brunswick, NJ 13,068,069 13,068,069 May 1, 2029
$17,222,418 $17,648,432
The County has authorized and entered into a lease agreement receivable
with the County of Somerset, New Jersey in conjunction with the
construction of the youth detention center as part of a cost-share
agreement.
The County has authorized and executed a lease agreement with the City of
New Brunswick, New Jersey in connection with the Civic Square II Project.
17) LEASE AGREEMENT - TAMARACK GOLF COURSE
Pursuant to a Lease and Agreement, dated as of April 1, 1996 (the “Lease
and Agreement”), between the Authority and the County, the Authority has
acquired a leasehold interest in the Golf Course for a period of 19 years.
The Lease and Agreement provides that the Authority shall be responsible
for the operation and maintenance of the Golf Course and shall be entitled
to all revenues and user fees related to the Golf Course. In addition, the
Authority shall have the ability to make alterations, additions and
improvements to the Golf Course (at its own expense). The Lease and
Agreement provided that the Authority will pay the County any Net Profits
after Reserves for capital improvements/investments on an annual basis.
During 2002 and 2001, the Golf Course has realized net income in the
amount of $25,000 and $25,000 respectively, which represents the amount
due to the County.
18) HEALTH AND HOSPITALS
The County provides certain medical and health services to residents
through the Raritan Bay Mental Health Center, several health clinics and
the Roosevelt Care Center (the “Center”). Effective June 14, 1997, the
Board of Chosen Freeholders transferred operation of, including the
license to operate the Center, to the Middlesex County Improvement
Authority (“MCIA”). On May 6, 1999, the Board of Chosen Freeholders
adopted a resolution authorizing the transfer of ownership of the Center
from the County to the MCIA. On November 15, 1999, the Board of Chosen
Freeholders adopted a resolution affirming the sale of the Center to the
MCIA. Agreements and contracts authorizing the transfer of the lands and
buildings were executed on January 19, 2000 and title of the property was
transferred to the MCIA.
18) HEALTH AND HOSPITALS (cont’d)
The Middlesex County Board of Chosen Freeholders, by way of Resolution
01-340, unanimously voted to proceed with the construction of a new
180-bed state-of-the-art long-term care County Facility to replace the
outdated Roosevelt Care Center Annex that had 100 beds. In furtherance of
Resolution 01-340, the Middlesex County Board of Chosen Freeholders
unanimously adopted a $19 million bond ordinance number 331 providing for
the construction of the new long-term care County Facility. The Board also
adopted Resolution 01-1141, dated July 19, 2001, accepting the proposal of
Gilbane to provide project/construction management services; and
Resolution 01-1448, dated August 16, 2001, accepting the proposal of
Nadaskay Kopelson Architects to provide professional architectural
services. The design and construction of the new County Facility is
proceeding and is expected to be completed on or about June 2004. The MCIA
will operate the new County Facility.
Simultaneous with the construction of the new County Facility, the Board
has determined that its 180-bed capacity would not be sufficient to meet
the future long-term care needs of the County. To this end, the Board has
determined to investigate the feasibility of renovating that portion of
the existing Roosevelt Care Center that has been designated as “historic”
that was built as part of the original facility. The proposed renovation
if undertaken would include approximately 7,500 sq. ft. of new
construction and provide for 165 residents. The Board adopted Resolution
02-1642 on September 16, 2002 accepting the proposal of Gilbane to
undertake the feasibility study, which has been completed and submitted to
the Board of Chosen Freeholders for consideration. Engineering and
architectural fees have been appropriated. It is anticipated that the
balance needed for construction will be included in the County’s 2004
capital budget.
19) COMMITMENTS AND CONTINGENCIES
As of the date of this report, the County had litigation pending. This
litigation can be generally categorized as negligence claims, workmen’s
compensation, condemnation cases and other miscellaneous cases.
Management’s review of the litigation pending indicates that any judgments
rendered against the County will not have a material adverse impact on the
County’s financial position.
As more fully described in Note 12, the County of Middlesex is
self-insured for general liability, police liability, medical malpractice
liability, public officials’ liability and property damage to County
vehicles and for Worker’s Compensation with the exception of claims which
occurred between April 1, 1998 and June 2, 2000. The estimated reserve
requirement for these claims is set forth in Note 12.
The County participates in a number of federal and state assisted programs
that are subject to audit and adjustment by the respective grantors. The
audits of these programs for or including the years ended December 31,
2002 and 2001 may have not been conducted or completed as of the date of
this report. Grantor agencies reserve the right to conduct additional
audits of the County’s grant program for economy, efficiencies and program
results which may result in disallowed costs to the County. However,
County management does not believe such audits would result in any
material amounts of disallowed costs.
20) SUBSEQUENT EVENTS
- January 14 -
The County closed on a Bond Anticipation Note sale in the aggregate
principal amount of $16,500,000 (“The Notes”). The Notes are dated January
14, 2003 and are due January 13, 2004 and renewed Bond Anticipation Notes
maturing on January 15, 2003 in the amount of $16,500,000.
- March 6 -
A Bond Ordinance was adopted by the Board of Chosen Freeholders amending
Bond Ordinance number 316 for an additional appropriation in the amount of
$2,400,000 providing for the construction of a Vocational and Technical
High School and a science and Technology Academy. The ordinance increases
the authorization of issuance of $2,400,000 in bonds or notes of the
County. This ordinance does not require a down payment.
A bond ordinance was adopted by the Board of Chosen Freeholders amending
Bond Ordinance number 322 for an additional appropriation in the amount of
$924,464 providing for the acquisition of land from the Township of
Woodbridge and the improvement thereof for park purposes. The ordinance
increased the appropriation for additional funds to be received from the
New Jersey Department of Environmental Protection and therefore, does not
authorize an increase in bonds or notes of the County.
- March 10 -
The County 2003 Operating Budget was adopted.
- April 3 -
Board of Chosen Freeholders adopted a Resolution setting the date of a
public hearing on the prospective financing by the Middlesex County
Improvement Authority relating to the acquisition of Open Space within the
County in an amount not to exceed $80,000,000.
A Bond Ordinance appropriating $42,272,714 was adopted by the Board of
Chosen relating to the 2003 Capital Projects of the County. The ordinance
authorizes the issuance of $40,259,727 in bonds or notes of the County.
The down payment of $2,012,987 has been provided for in the 2003 Operating
Budget.
A Bond Ordinance appropriating $1,757,987 was adopted by the Board of
Chosen Freeholders providing for the renovation of the original portion of
the Roosevelt Care Center and authorizing the issuance of $1,674,273 in
bonds or notes of the County. The down payment of $83,714 has been
provided for in the 2003 Operating Budget.
A Bond Ordinance providing for Guide rail Safety Improvements to County
Roads was adopted re-appropriating $1,000,000 from Bond Ordinance numbers:
279, 296, 318 and 339.
A Bond Ordinance amending Bond Ordinance 279 (adopted on April 19, 1990)
was adopted by the Board of Chosen Freeholders. This amending ordinance
amends the description of projects authorized to include new projects;
re-appropriates money therein to new purposes and reallocates the
authorization of bond or notes to such purposes.
A Bond Ordinance amending Bond Ordinance 296 (adopted on June, 20 1994)
was adopted by the Board of Chosen Freeholders. This amending ordinance
amends the description of projects authorized to include new projects;
reappropriates money therein to new purposes and reallocates the
authorization of bond or notes to such purposes.
- April 3 (con’t)-
A Bond Ordinance amending Bond Ordinance 324 (adopted on April 17, 2000)
was adopted by the Board of Chosen Freeholders. This amending ordinance
amends the description of projects authorized to include new projects;
reappropriates money therein to new purposes and reallocates the
authorization of bond or notes to such purposes.
A Bond Ordinance amending Bond Ordinance 339 (adopted on May 2, 2202) was
adopted by the Board of Chosen Freeholders. This amending ordinance amends
the description of projects authorized to include new projects;
reappropriates money therein to new purposes and reallocates the
authorization of bond or notes to such purposes.
- May 1 -
The Board of Chosen Freeholders adopted a Lease Ordinance to participate
in the Capital Equipment Lease Revenue Bond Program of the MCIA and a
Guarantee Ordinance in an amount not to exceed $16,000,000 to guarantee
the Capital Equipment Lease Revenue Bonds of the MCIA.
- May 8 -
A Public Hearing was held on the use of Middlesex County Open Space
Recreation and Farmland and Historical Preservation Trust Fund (“Trust
Fund”) and to authorize bonds to be issued by the MCIA in the amount not
to exceed $80,000,000 the proceeds of which will be used to acquire “Open
Space” land within the County to be used for passive/active recreation,
and preservation of farmland and historical facilities and authorized the
use of the “Trust Fund” to pay debt service on such bonds.
- May 15 -
The Board of Chosen Freeholders adopted a resolution to authorize the sale
of $43,534,000 Bond Anticipation Notes and adopted a resolution
authorizing the form and sale of bonds in the aggregate principal amount
of $23,257,000 general obligation bonds consisting of $14,252,000 general
improvement bonds and $6,980,000 County College Bonds (County College Bond
Act, 1971 N.J. laws C. 12) and $2,000,000 Vocational Technical School
Bonds, which bonds are issued pursuant to various bond ordinances duly
adopted by the County.
- June 25 -
The County Closed on a $23,237,000 General Obligation Bond sale. The
General Obligation Bonds are dated June 15, 2003 and consist of
$14,257,000 General Improvement Bonds and $6,980,000 County College Bonds
(County College Bond Act, 1971 N.J. laws C. 12) and $2,000,000 Vocational
Technical School Bond Bonds. The County also closed on a Bond Anticipation
Note sale in the aggregate principal amount of $43,534,000 (“The Notes”).
The Notes are dated June 25, 2003 and are due June 24, 2004 and renewed a
portion of Bond Anticipation Notes dated June 27, 2002 and maturing on
June 26, 2003 in the amount of $24,750,000 and temporarily financed
$18,784,000 in additional capital improvements.
The Middlesex County Improvement Authority closed on its County-Guaranteed
Capital Equipment Lease Revenue Bonds, Series 2003 which bonds were
guaranteed by the County in the aggregate principal amount of $14,740,000.
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