TOWNSHIP OF MOORESTOWN

AUDIT REPORT FOR THE YEAR ENDED DECEMBER 31, 2018

TOWNSHIP OF MOORESTOWN COUNTY OF BURLINGTON

CONTENTS

PART 1 PAGE

Independent Auditor’s Report 1 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 5

EXHIBITS Financial Statements – Regulatory Basis: Current Fund: Statements of Assets, Liabilities, Reserves & Fund Balance – Regulatory Basis A 9 Statement of Operations and Changes in Fund Balance – Regulatory Basis A-1 11 Statement of Revenues – Regulatory Basis A-2 12 Statement of Expenditures – Regulatory Basis A-3 15

Trust Fund: Statements of Assets, Liabilities, Reserves & Fund Balance – Regulatory Basis B 21 Statement of Operations and Changes in Reserve For Future Use – Open Space Fund B-1 23 Statement of Revenues – Open Space Fund B-2 24 Statement of Expenditures – Open Space Fund B-3 25

General Capital Fund: Statements of Assets, Liabilities, Reserves & Fund Balance – Regulatory Basis C 27

Water-Sewer Utility Fund: Statements of Assets, Liabilities, Reserves & Fund Balance – Regulatory Basis D 29 Statements of Operations & Changes in Operating Fund Balance – Regulatory Basis D-1 31 Statement of Fund Balance – Regulatory Basis D-2 31 Statement of Revenues – Regulatory Basis D-3 32 Statement of Expenditures – Regulatory Basis D-4 33

General Fixed Assets Account Group: Statement of Fixed Assets & Fund Balance - Regulatory Basis E 35

Notes to Financial Statements 39 (continued)

EXHIBITS PAGE Supplemental Exhibits: Current Fund Schedule of Cash and Investments - Treasurer A-4 87 Schedule of Change Funds A-5 88 Schedule of Taxes Receivable & Analysis of Property Tax Levy A-6 89 Schedule of Tax Title Liens A-7 90 Schedule of Property Acquired for Taxes A-8 90 Schedule of Revenue Accounts Receivable A-9 91 Schedule of 2017 Appropriation Reserves A-10 93 Schedule of Local District School Taxes Payable A-11 96 Schedule of State & Federal Grants Receivable A-12 97 Schedule of Reserves for State & Federal Grants and Matching Funds – Appropriated A-13 98 Schedule of Reserves for State Grants - Unappropriated A-14 99

Trust Fund: Schedule of Fund Balance – Regulatory Basis B-4 103 Schedule of Cash and Investments - Treasurer B-5 104 Analysis of Assessment Cash and Investments B-6 106 Schedule of Assessment Liens B-7 107 Dog License Fund: Schedule of Reserve - Expenditures B-8 107 Schedule of Due from Township Clerk B-9 108 Trust Fund Other: Schedule of Due from/to Current Fund B-10 108 Trust Assessment Fund: Schedule of Reserve for Assessments & Liens B-11 108 Dog License Fund: Schedule of Due to State of New Jersey B-12 109 Schedule of Due From/(To) Current Fund B-13 109 Schedule of Municipal Open Space Reserve B-14 110 Schedule of Payroll Fund Cash B-15 111 Trust Fund – Other: Schedule of Miscellaneous Trust Reserves B-16 112

General Capital Fund: Schedule of Fund Balance – Regulatory Basis C-1 115 Schedule of Cash and Investments - Treasurer C-2 115 Analysis of Cash and Investments C-2a 116 Schedule of Deferred Charges to Future Taxation Unfunded C-3 117 Schedule of Due From/(To) Current Fund C-4 118 Schedule of Deferred Charges to Future Taxation – Funded C-5 118 Schedule of Improvement Authorizations C-6 119 Schedule of Capital Improvement Fund C-7 121 Schedule of General Serial Bonds C-8 122 Schedule of Bonds & Notes Authorized But Not Issued C-9 123 Schedule of Reserve for Debt Service C-10 124 Schedule of Bond Anticipation Notes Payable C-11 125 Schedule of Receivables C-12 126 (continued)

EXHIBITS PAGE Water Sewer Utility Operating Fund: Schedule of Utility Cash and Investments – Treasurer D-5 129 Schedule of Due From/(To) Capital Fund D-6 130 Analysis of Assessment Trust – Cash D-7 130 Analysis of Cash - Capital Fund D-8 131 Schedule of Service Charges Receivable D-9 132 Schedule of Assessments Receivable D-10 132 Schedule of Assessments Held in Abeyance D-11 133 Schedule of Fixed Capital D-12 133 Schedule of Fixed Capital Authorized & Uncompleted D-13 134 Schedule 2017 Appropriation Reserves D-14 135 Schedule of Accrued Interest on Bonds and Notes D-15 135 Schedule of Reserve for Assessments D-16 136 Schedule of Improvement Authorizations D-17 137 Schedule of Capital Improvement Fund D-18 138 Schedule of Reserve for Amortization D-19 138 Schedule of Deferred Reserve for Amortization D-20 138 Schedule of Serial Bonds Payable – Capital Fund D-21 139 Schedule of Fund Balance – Capital Fund D-22 140 Schedule of Bonds & Notes Authorized But Not Issued – Capital Fund D-23 141

General Fixed Assets Fund: Schedule of Investment in Fixed Assets E-1 145

PART II

Schedule of Financial Statement Findings – Government Auditing Standards: Schedule of Financial Statement Findings 149 Summary Schedule of Prior Year Audit Findings and Questioned Costs as Prepared by Management 150

PART III

Letter of Comments and Recommendations – Regulatory Basis: Officials in Office 153 General Comments 155 Other Comments (Findings) 156 Recommendations 156 Acknowledgment 157 (concluded) ******************

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PART I

INDEPENDENT AUDITOR'S REPORTS FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA FOR THE YEAR ENDED DECEMBER 31, 2018

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INDEPENDENT AUDITOR’S REPORT

Honorable Mayor and Members of the Township Council Township of Moorestown County of Burlington Moorestown, New Jersey

Report on the Financial Statements

We have audited the accompanying statements of assets, liabilities, reserves and fund balance - regulatory basis of the various funds and account group of the Township of Moorestown as of December 31, 2018 and 2017, and the related statements of operations and changes in fund balance - regulatory basis for the years then ended, the related statements of revenues - regulatory basis, and statements of expenditures - regulatory basis for the year ended December 31, 2018 and the related notes to the financial statements, which collectively comprise the Township’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and in compliance with audit requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Township’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating

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the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

Basis for Adverse Opinion on Accounting Principles Generally Accepted in the United States of America

As described in Note 1, the financial statements are prepared by the Township of Moorestown on the basis of the financial reporting provisions of the Division of Local Government Services, Department of Community Affairs, State of New Jersey, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to meet the requirements of the State of New Jersey.

The effects on the financial statements of the variances between the regulatory basis of accounting described in Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

Adverse Opinion on Accounting Principles Generally Accepted in the United States of America

In our opinion, because of the significance of the matter discussed in the “Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles” paragraph, the financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Township, as of December 31, 2018 and 2017, or the results of its operations and changes in fund balance for the years then ended.

Unmodified Opinion on Regulatory Basis of Accounting

In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities, reserves and fund balance - regulatory basis of the various funds of the Township, as of December 31, 2018 and 2017, and the results of its operations and changes in fund balance - regulatory basis of such funds for the years then ended, and the statements of revenues - regulatory basis, statements of expenditures - regulatory basis of the various funds, and general fixed assets group of accounts – regulatory basis, for the year ended December 31, 2018 in conformity with accounting principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey as described in Note 1.

Emphasis of Matter

Change in Accounting Principle

As discussed in Note 1 to the financial statements, during the year ended December 31, 2018 the Township adopted Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Post-employment Benefits Other than Pensions - an Amendment of GASB Statement No. 45, 57, & 74. Our opinion is not modified with respect to this matter.

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Other Matters

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Township’s basic financial statements. The supplemental schedules presented for the various funds and letter of comments and recommendations section are presented for purposes of additional analysis as required by the Division of Local Government Services, Department of Community Affairs, State of New Jersey and are not a required part of the basic financial statements.

The supplemental schedules presented for the various funds are the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements of each of the respective individual funds and account group taken as a whole.

The letter of comments and recommendations section has not been subject to the auditing procedures applied in the audit of the financial statements, and accordingly, we do not express an opinion or provide assurance on it.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated August 5, 2019 on our consideration of the Township's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Township's internal control over financial reporting and compliance.

Respectfully submitted,

HOLMAN FRENIA ALLISON, P.C.

Michael Holt Certified Public Accountant Registered Municipal Accountant RMA No. 473

Medford, New Jersey August 5, 2019

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INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Honorable Mayor and Members of the Township Council Township of Moorestown County of Burlington Moorestown, New Jersey

We have audited, in accordance with the auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States and audit requirements as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, the financial statements - regulatory basis of the Township of Moorestown, as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the Township's basic financial statements, and have issued our report thereon dated August 5, 2019. Our report indicated that the Township’s financial statements were not prepared in accordance with accounting principles generally accepted in the United States of America but rather prepared in accordance with the regulatory basis of accounting prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Township's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Township’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Township’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any

5 deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Township's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and audit requirements as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Township's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards and audit requirements as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey in considering the Township’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Respectfully Submitted,

HOLMAN FRENIA ALLISON, P.C.

Michael Holt Certified Public Accountant Registered Municipal Accountant RMA No. 473

Medford, New Jersey August 5, 2019

6 FINANCIAL STATEMENTS

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8 EXHIBIT A (Page 1 of 2) TOWNSHIP OF MOORESTOWN CURRENT FUND STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND FUND BALANCE - REGULATORY BASIS DECEMBER 31, 2018 AND 2017

ASSETS REFERENCE 2018 2017

Regular Fund: Cash: Treasurer A-4$ 22,815,949 $ 32,676,340 Change Fund A-5 650 575

Total 22,816,599 32,676,915

Receivables & Other Assets With Full Reserves: Delinquent Taxes Receivable A-6 727,120 793,927 Tax Title Liens Receivable A-7 1,220,143 1,166,115 Foreclosed Property - Assessed Valuation A-8 101,300 101,300 Revenue Accounts Receivable A-9 13,340 18,186 Due From Interfunds: Animal Control Fund B 9,661 3,279 Truth Other Fund B 15,219 3,375 Truth Assessment Fund B 147 9 General Capital C 3 - Bond & Coupon Account A 6,966 6,966

Total Receivables & Other Assets With Full Reserves 2,093,899 2,093,157

Other Accounts Receivable: Due from State of NJ - Burial Permits A 80 75

Total Other Accounts Receivable 80 75

Total Regular Funds 24,910,578 34,770,147

Federal & State Grants: State Grants Receivable A-12 - 125,000 Due From Current Fund A 222,811 113,232

Total State & Federal Grants 222,811 238,232

Total Assets $ 25,133,389 $ 35,008,379

The accompanying Notes to the Financial Statement are an integral part of these Statements.

9 EXHIBIT A (Page 2 of 2) TOWNSHIP OF MOORESTOWN CURRENT FUND STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND FUND BALANCE - REGULATORY BASIS DECEMBER 31, 2018 AND 2017

LIABILITIES RESERVES & FUND BALANCE REFERENCE 2018 2017

Regular Fund: Liabilities: Appropriation Reserves A-3$ 930,361 $ 1,249,343 Reserve for Encumbrances A-3 673,700 778,908 Accounts Payable A 142,809 120,994 Due County for Added & Omitted Taxes A-6 182,979 298,603 Local District School Taxes Payable A-11 9,392,549 8,759,609 Prepaid Taxes A-4 1,042,614 11,491,521 Tax Overpayments A 200,647 72,221 Due to State of New Jersey for Senior Citizen & Veteran Deductions A 39,186 39,340 Due to State - Marriage License Fees A 671 321 Due to State - DCA Fees A 31,240 48,849 Due to Interfunds: Federal & State Grant A 222,811 113,232 Payroll Fund E 7,698 1 Capital Fund C - 7 Water and Sewer Operating Fund D 502 - Reserve for: Tax Appeals A 1,251,689 1,294,909 Tax Assessment Revaluation A 262 262

Subtotal Regular Fund 14,119,718 24,268,120

Reserve for Receivables & Other Assets A 2,093,899 2,093,157 Fund Balance A-1 8,696,961 8,408,870

Total Regular Fund 24,910,578 34,770,147

State & Federal Grants: Reserve for Federal & State Grants: Appropriated A-13 195,955 174,771 Unappropriated A-14 14,828 51,264 Encumbrances Payable A-13 12,028 12,197

Total State & Federal Grants 222,811 238,232

Total Liabilities, Reserves & Fund Balance$ 25,133,389 $ 35,008,379

The accompanying Notes to the Financial Statement are an integral part of these Statements.

10 EXHIBIT A-1 TOWNSHIP OF MOORESTOWN CURRENT FUND STATEMENTS OF OPERATIONS AND CHANGES IN FUND BALANCE - REGULATORY BASIS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

REFERENCE 2018 2017 Revenue & Other Income Realized: Fund Balance Utilized A-1,A-2$ 2,605,000 $ 2,011,800 Miscellaneous Revenue Anticipated A-2 6,199,177 5,804,586 Receipts From Delinquent Taxes & Tax Title Liens A-2 790,077 887,064 Receipts From Current Taxes A-2 102,867,495 103,272,713 Nonbudget Revenue A-2 468,513 208,843 Other Credits to Income: Unexpended Balance of Appropriation Reserves A-10 867,882 714,687 Cancellation of Prior Year Accounts Payable A 11,520 30,218 Prior Year Interfunds Returned A - 66,065 Change Fund Adjustment A 75 -

Total 113,809,739 112,995,976

Expenditures: Budget Appropriations Within "CAPS": Operations: Salaries & Wages A-3 8,240,716 8,044,285 Other Expenses A-3 7,538,299 7,423,188 Deferred Charges & Statutory Expenditures A-3 1,663,023 1,656,008 Excluded From "CAPS": Operations: Salaries & Wages A-3 69,400 47,438 Other Expenses A-3 1,663,948 1,632,972 Capital Improvements A-3 350,000 200,000 Municipal Debt Service A-3 3,967,929 3,747,925 Deferred Charges A-3 525,000 39,016 Judgements A-3 - - Fire District Taxes A-6 2,851,411 2,808,935 County Taxes A-6 15,894,662 17,707,916 Local District School Tax A-11 67,731,107 66,465,222 Municipal Open Space A-6 407,452 408,445 Senior Citizen & Veteran Deductions Disallowed: Prior Year A 1,167 2,500 Refund of Prior Year Revenue A 438 13,625 Interfund Reserves Created A 12,096 3,570

Total Expenditures 110,916,648 110,201,045

Excess/(Deficit) in Revenue 2,893,091 2,794,931

Statutory Excess to Fund Balance 2,893,091 2,794,931 Fund Balance January 1 A 8,408,870 7,625,739

Total 11,301,961 10,420,670 Decreased by: Utilization as Anticipated Revenue A-1,A-2 2,605,000 2,011,800

Fund Balance December 31 A $ 8,696,961 $ 8,408,870

The accompanying Notes to the Financial Statement are an integral part of these Statements.

11 EXHIBIT A-2 (Page 1 of 3) TOWNSHIP OF MOORESTOWN CURRENT FUND STATEMENT OF REVENUES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

APPROPRIATED BY EXCESS OR BUDGET N.J.S.A.40A:47-87 REALIZED (DEFICIT)

Fund Balance Utilized$ 2,605,000 $ - $ 2,605,000 $ -

Miscellaneous Revenue: Licenses - Alcoholic Beverages 15,000 - 16,500 1,500 Licenses - Other 1,000 - 1,517 517 Fees & Permits - Other 140,000 - 136,123 (3,877) Fines & Costs - Municipal Court 200,000 - 186,196 (13,804) Interest & Costs on Taxes 255,000 - 251,797 (3,203) Parking Meters 15,000 - 53,148 38,148 Interest on Investments & Deposits 142,900 - 346,429 203,529 Recreation Fees 265,000 - 294,285 29,285 Police Accident Report Fees 5,000 - 4,997 (3) Special Police Duty Service Charges 175,000 - 165,648 (9,352) Street Opening Permits 1,725 - 2,075 350 Cable Television Fees 92,093 - 92,094 1 Consolidated Municipal Property Tax Relief Act 44,470 - 44,470 - Energy Receipts Tax 1,749,493 - 1,749,493 - Supplemental Franchise & Gross Receipts Tax (P.S.E.& G.) 248,525 - 248,525 - Fees & Permits: Uniform Construction Code 1,250,000 - 1,272,079 22,079 General Capital Surplus 250,000 - 250,000 - Reserve for Payment of Bonds 130,000 - 130,000 - Water & Sewer Fund Reimbursement 350,000 - 350,000 - Shared Service Reimbursements 33,600 - 40,050 6,450 Library Services Reimbursement 165,000 - 165,000 - BOE Reimbursement - Resource Officer 139,600 - 143,663 4,063 Tower Rents 82,385 - 87,627 5,242 State/Federal/Local Grants: Body Armor Replacement 3,151 - 3,151 - Recycling Tonnage 40,348 - 40,348 - Drunk Driving Enforcement Fund 7,765 - 7,765 - Clean Communities Program 45,265 - 45,265 - Safe and Secure 60,000 - 60,000 - E.M.A - HMEP Grant 9,400 - 9,400 - Bulletproof Vest Partnership Grant 1,532 - 1,532 -

The accompanying Notes to the Financial Statement are an integral part of these Statements.

12 ` EXHIBIT A-2 (Page 2 of 3) TOWNSHIP OF MOORESTOWN CURRENT FUND STATEMENT OF REVENUES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

APPROPRIATED BY EXCESS OR BUDGET N.J.S.A.40A:4-87 REALIZED (DEFICIT)

Total Miscellaneous Revenues 5,918,252 - 6,199,177 280,925

Receipts From Delinquent Taxes 775,000 - 790,077 15,077

Subtotal General Revenues 9,298,252 - 9,594,254 296,002

Local Tax for Municipal Purposes 14,758,840 - 16,021,517 1,262,677 Minimum Library Tax 1,534,908 - 1,534,908 -

Budget Totals 25,592,000 - 27,150,679 1,558,679 Nonbudget Revenues - - 468,513 468,513

Total$ 25,592,000 $ - $ 27,619,192 $ 2,027,192

ANALYSIS OF REALIZED REVENUES

Allocation of Current Tax Collections: Revenue From Collections $ 103,167,495 Less: School, County Taxes, Special District & Open Space 86,884,632

Balance for Support of Municipal Budget Appropriations 16,282,863 Add: Budget Appropriation - Reserve for Uncollected Taxes 1,573,562 Less: Reserve for Tax Appeals Pending (300,000)

Total Amount for Support of Municipal Budget Appropriation$ 17,556,425

Receipts From Delinquent Taxes: Delinquent Tax Collections $ 790,077

Total Receipts From Delinquent Taxes $ 790,077

The accompanying Notes to the Financial Statement are an integral part of these Statements.

13 EXHIBIT A-2 (Page 3 of 3) TOWNSHIP OF MOORESTOWN CURRENT FUND STATEMENT OF REVENUES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

ANALYSIS OF NONBUDGET REVENUE

Miscellaneous Revenue Not Anticipated: Miscellaneous Advertising Fee $ 2,974 FEMA Reimbursement 3,191 False Alarm Fees 23,050 Peddler/Solicitor Permit 3,215 Developer Application Fees 3,559 Insurance Refunds 2,500 Efficiency Award/JIF Safety Award 2,500 Tax Premium on Foreclosures 14,600 Cancel unallocated UCC Reserve Balance 321,447 Photo Copies 41 Payment in Lieu of Taxes - PILOT 26,981 JIF Dividends 43,774 RAPID Program 1,200 Street and Zoning Maps 820 Cancel Prior Years Outstanding Checks 951 Scrap Metal & Waste Oil 7,094 DMV Inspection Fees 332 Towing Fees 960 State of NJ 2% Administration Fee & Homestead Rebate Mailing 3,293 Miscellaneous 3,304 Refund Prior Year Expenditures 2,727

Total $ 468,513

The accompanying Notes to the Financial Statement are an integral part of these Statements.

14 EXHIBIT A-3 (Page 1 of 6) TOWNSHIP OF MOORESTOWN CURRENT FUND STATEMENT OF EXPENDITURES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

APPROPRIATIONS PAID OR CHARGED BUDGET AFTER OPERATIONS WITHIN "CAPS" BUDGET MODIFICATION EXPENDED ENCUMBERED RESERVED CANCELED

General Government: General Administration: Salaries and Wages $ 261,290 $ 217,290 $ 215,632 $ - $ 1,658 $ - Other Expenses 64,740 64,740 56,887 1,837 6,016 - Human Resources: Other Expenses 31,480 22,980 11,360 1,110 10,510 - Mayor & Council: Salaries and Wages 24,795 24,795 24,795 - - - Other Expenses 6,775 6,775 6,213 343 219 - Municipal Clerk:

15 Salaries and Wages 85,910 85,910 85,764 - 146 - Other Expenses 20,970 22,970 20,334 1,298 1,338 - Financial Administration (Treasury): Office of Controller: Salaries and Wages 221,515 221,515 221,013 - 502 - Other Expenses 21,258 21,258 20,471 699 88 - Auditing Services: Other Expenses 30,500 30,500 30,500 - - - Computer Data Processing: Salaries and Wages 56,960 56,960 56,536 - 424 - Other Expenses 80,660 131,860 62,876 62,295 6,689 - Revenue Administration (Tax Collection): Salaries and Wages 116,650 116,650 116,409 - 241 - Other Expenses 12,000 12,000 8,826 - 3,174 - Tax Assessment: Salaries and Wages 121,720 121,720 121,716 - 4 - Other Expenses 33,325 33,325 4,893 7,483 20,949 - Legal Services (Legal Department): Other Expenses 186,500 206,500 152,129 31,365 23,006 - Engineering Services: Other Expenses 132,500 132,500 109,729 7,357 15,415 - Economic Development Agencies: Other Expenses 2,500 2,500 2,500 - - - EXHIBIT A-3 (Page 2 of 6) TOWNSHIP OF MOORESTOWN CURRENT FUND STATEMENT OF EXPENDITURES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

APPROPRIATIONS PAID OR CHARGED BUDGET AFTER OPERATIONS WITHIN "CAPS" BUDGET MODIFICATION EXPENDED ENCUMBERED RESERVED CANCELED

Land Use Administration: Planning Board: Salaries and Wages 213,855 216,355 215,486 - 869 - Other Expenses 62,600 62,600 41,194 6,961 14,445 - Zoning Board of Adjustments: Salaries and Wages 76,490 77,490 76,840 - 650 - Other Expenses 43,100 43,100 35,011 - 8,089 - Insurance: Unemployment Compensation 12,000 12,000 10,465 - 1,535 - Worker's Compensation 219,800 219,800 219,755 - 45 - Employee Group Insurance 2,290,500 2,290,500 2,150,945 1,000 138,555 - 16

Other Insurance Premiums 213,600 213,600 211,478 - 2,122 - Health Benefit Waiver 33,100 33,100 32,092 - 1,008 - Public Safety Functions: Police: Salaries and Wages 4,602,375 4,506,375 4,364,170 - 142,205 - Other Expenses 191,384 191,384 133,019 57,730 635 - Prosecutor: Salaries and Wages 19,971 19,971 19,971 - - - Public Works Functions: Department of Public Works: Office of the Director: Salaries and Wages 203,100 189,100 186,674 - 2,426 - Other Expenses 12,925 8,925 4,737 742 3,446 - Road Repairs & Maintenance: Salaries and Wages 845,800 845,800 821,052 - 24,748 - Other Expenses 231,150 254,150 221,322 29,331 3,497 - Maint. Of Motor Vehicles Salaries and Wages 110,500 110,500 99,297 11,203 - Other Expenses 143,500 154,500 117,364 10,018 27,118 - Division of Sanitation Other Expenses 705,500 705,500 492,693 199,777 13,030 - Building & Grounds: Other Expenses 364,000 364,000 259,956 89,548 14,496 - EXHIBIT A-3 (Page 3 of 6) TOWNSHIP OF MOORESTOWN CURRENT FUND STATEMENT OF EXPENDITURES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

APPROPRIATIONS PAID OR CHARGED BUDGET AFTER OPERATIONS WITHIN "CAPS" BUDGET MODIFICATION EXPENDED ENCUMBERED RESERVED CANCELED

Public Works Functions (continued): Shade Tree: Salaries and Wages 168,275 168,275 161,324 - 6,951 - Other Expenses 79,150 79,150 57,382 12,534 9,234 - Shade Tree Advisory Committee: Other Expenses 2,000 2,000 505 1,090 405 - Health & Human Services: Environmental Committee: Other Expenses 2,500 2,500 1,040 - 1,460 - Animal Control: Contractual Service 2,100 2,100 1,925 - 175 - 17

Contributions to Social Services Agencies: Other Expenses 2,000 2,000 910 1,090 - - Parks & Recreation: Recreation Services & Programs: Salaries and Wages 423,350 388,350 378,379 - 9,971 - Other Expenses 128,940 128,940 101,117 15,420 12,403 - Parks & Playgrounds: Salaries and Wages 93,035 97,335 96,097 - 1,238 - Other Expenses 93,792 93,792 62,837 13,932 17,023 - Utility Expenses & Bulk Purchases: Electricity 337,500 316,500 266,367 30,758 19,375 - Street Lighting Other Expenses 285,000 277,000 250,455 25,000 1,545 - Telephone Expenses 112,500 112,500 95,361 1,424 15,715 - Water 8,500 8,500 4,196 113 4,191 - Gas (Natural/Propane) 38,000 38,000 30,192 510 7,298 - Telecommunications 3,800 3,800 3,472 - 328 - Gasoline 161,000 181,000 142,493 18,900 19,607 - Solid Waste Disposal Cost: - Other Expenses 719,000 719,000 648,641 - 70,359 - Code Enforcement & Administration Building & Inspections Salaries and Wages 455,725 437,225 429,764 - 7,461 - Other Expenses 176,950 176,950 120,779 42,540 13,631 - EXHIBIT A-3 (Page 4 of 6) TOWNSHIP OF MOORESTOWN CURRENT FUND STATEMENT OF EXPENDITURES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

APPROPRIATIONS BUDGET AFTER PAID OR CHARGED OPERATIONS WITHIN "CAPS" BUDGET MODIFICATION EXPENDED ENCUMBERED RESERVED CANCELED

Municipal Court Municipal Court Salaries and Wages 138,000 142,000 141,932 - 68 - Other Expenses 47,850 47,850 42,017 835 4,998 - Public Defender Other Expenses 8,750 8,750 6,330 660 1,760 - Unclassified: Accum. Absence Compensation 5,000 115,000 115,000 - - - Sick Sell-back 49,000 49,000 - - 49,000 - Condo Services 130,000 130,000 - - 130,000 - 18

Total Operation Within "CAPS" 15,779,015 15,779,015 14,200,619 673,700 904,696 -

Detail: Salaries and Wages 8,326,416 8,240,716 7,979,943 - 260,773 - Other Expenses (Including Contingent) 7,452,599 7,538,299 6,220,676 673,700 643,923 -

Deferred Charges/Statutory Expenditures - Municipal Within "CAPS": Social Security 370,000 370,000 348,747 - 21,253 - Public Employees Retirement System 422,389 422,389 422,389 - - - Police & Fire Retirement System 861,634 861,634 861,634 - - - Defined Contribution Plan 9,000 9,000 4,588 - 4,412 -

Total Deferred Charges & Statutory Expenditures Within "CAPS" 1,663,023 1,663,023 1,637,358 - 25,665 -

Total General Appropriations for Municipal Purposes Within "CAPS" 17,442,038 17,442,038 15,837,977 673,700 930,361 - EXHIBIT A-3 (Page 5 of 6) TOWNSHIP OF MOORESTOWN CURRENT FUND STATEMENT OF EXPENDITURES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

APPROPRIATIONS BUDGET AFTER PAID OR CHARGED OPERATIONS EXCLUDED FROM "CAPS" BUDGET MODIFICATION EXPENDED ENCUMBERED RESERVED CANCELED

Maintenance of Free Public Library: Other Expenses 1,559,908 1,559,908 1,559,908 - - - Public & Private Programs Offset by Revenues: Supplemental Fire Services Program 5,979 5,979 5,979 - - - Safe and Secure Communities Grant 60,000 60,000 60,000 - - - County E.M.A. - Homeland Security Grant 9,400 9,400 9,400 - - - Clean Communities Act 45,265 45,265 45,265 - - - Body Armor Replacement Fund 3,151 3,151 3,151 - - - Drunk Driving Enforcement Grant 7,765 7,765 7,765 - - - Recycling Tonnage 40,348 40,348 40,348 - - - Bulletproof Vest Partnership Grant 1,532 1,532 1,532 - - - 19

Total Operations Excluded From "CAPS" 1,733,348 1,733,348 1,733,348 - - -

Detail: Salaries and Wages 9,400 69,400 69,400 - - - Other Expenses 1,723,948 1,663,948 1,663,948 - - -

Capital Improvements - Excluded from "CAPS": Capital Improvement 350,000 350,000 350,000 - - -

Total Capital Improvements Excluded from "CAPS" 350,000 350,000 350,000 - - - EXHIBIT A-3 (Page 6 of 6) TOWNSHIP OF MOORESTOWN CURRENT FUND STATEMENT OF EXPENDITURES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

APPROPRIATIONS BUDGET AFTER PAID OR CHARGED OPERATIONS EXCLUDED FROM "CAPS" BUDGET MODIFICATION EXPENDED ENCUMBERED RESERVED CANCELED

Municipal Debt Service - Excluded from "CAPS": Payment of Bond Principal 2,826,065 2,826,065 2,826,065 - - - Interest on Bonds 796,000 796,000 795,878 - - 122 Interest on Notes 345,987 345,987 345,986 - - 1

Total Municipal Debt Service Excluded from "CAPS" 3,968,052 3,968,052 3,967,929 - - 123

Judgements 525,000 525,000 525,000 - - -

20 Total General Appropriations Excluded from "CAPS" 6,576,400 6,576,400 6,576,277 - - 123

Subtotal General Appropriations 24,018,438 24,018,438 22,414,254 673,700 930,361 123 Reserve For Uncollected Taxes 1,573,562 1,573,562 1,573,562 - - -

Total General Appropriations $ 25,592,000 $ 25,592,000 $ 23,987,816 $ 673,700 $ 930,361 $ 123

Adopted Budget $ 25,592,000

Total $ 25,592,000

Reserve for Uncollected Taxes $ 1,573,562 Cash Disbursements 23,163,858 Refunds Current Year Appropriations (925,114) Due to Trust Payroll Fund 8,049 Reserve for Federal & State Grants 167,461

$ 23,987,816

The accompanying Notes to the Financial Statement are an integral part of these Statements. EXHIBIT B (Page 1 of 2) TOWNSHIP OF MOORESTOWN TRUST FUND STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND FUND BALANCE - REGULATORY BASIS DECEMBER 31, 2018 AND 2017

ASSETS REFERENCE 2018 2017

Other Trust Funds: Cash - Collector - Treasurer B-5$ 5,315,639 $ 5,697,555

Total Other Trust Funds 5,315,639 5,697,555

Municipal Open Space Fund: Cash - Collector - Treasurer B-5 2,727,373 2,734,945

Total Municipal Open Space Fund 2,727,373 2,734,945

Assessment Fund: Cash - Treasurer B-5,B-6 11,212 11,074 Assessment Liens B-7 287 287

Total Assessment Funds 11,499 11,361

Animal Control Fund: Cash - Treasurer B-5 36,047 29,524

Total Animal Control Fund 36,047 29,524

Payroll Fund: Cash B-15 (2,987) 17,004 Due from Current Fund A 7,698 1

Total Payroll Fund 4,711 17,005

Total Assets$ 8,095,269 $ 8,490,390

The accompanying Notes to the Financial Statement are an integral part of these Statements.

21 EXHIBIT B (Page 2 of 2) TOWNSHIP OF MOORESTOWN TRUST FUND STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND FUND BALANCE - REGULATORY BASIS DECEMBER 31, 2018 AND 2017

REFERENCE 2018 2017 Other Trust Funds: Due to Current Fund A$ 15,219 $ 3,375 Various Reserves B-16 5,300,420 5,694,180

Total Other Trust Funds 5,315,639 5,697,555

Municipal Open Space Fund: Reserve for Future Use B-1 2,727,373 2,734,945

Total Municipal Open Space Fund 2,727,373 2,734,945

Assessment Funds: Reserve for Assessments & Liens B-11 287 287 Due to Current Fund A 147 9 Fund Balance B-4 11,065 11,065

Total Assessment Funds 11,499 11,361

Animal Control Fund: Due Township Clerk's Account B-9 29 29 Due Current Fund B-13 9,661 3,279 Due to State of New Jersey B-12 1 1 Reserve for Animal Control Expenditures B-8 26,356 26,215

Total Animal Control Fund 36,047 29,524

Payroll Fund: Payroll Deductions Payable B 4,711 17,005

Total Payroll Fund 4,711 17,005

Total Liabilities, Reserves & Fund Balance$ 8,095,269 $ 8,490,390

The accompanying Notes to the Financial Statement are an integral part of these Statements.

22 EXHIBIT B-1 TOWNSHIP OF MOORESTOWN TRUST - MUNICIPAL OPEN SPACE FUND STATEMENTS OF OPERATIONS AND CHANGES IN RESERVE FOR FUTURE USE - REGULATORY BASIS DECEMBER 31, 2018 AND 2017

REVENUE REALIZED: 2018 2017

Amount to be Raised by Taxation$ 407,452 $ 408,445 County Open Space - Matching Funds 132,600 135,200 State Matching Funds - 550,000 Interest Income 28,254 12,952 Miscellaneous 1,000 25,000

Total Income 569,306 1,131,597

EXPENDITURES:

Budget Appropriations: Salary and Wages 137,140 174,586 Other Expenses 272,668 135,681 Debt Service 167,070 166,951

Total Expenditures 576,878 477,218

Statutory Excess to Reserve (7,572) 654,379

RESERVE FOR FUTURE USE:

Balance January 1, 2,734,945 2,080,566

Balance December 31, $ 2,727,373 $ 2,734,945

The accompanying Notes to the Financial Statement are an integral part of these Statements.

23 EXHIBIT B-2 TOWNSHIP OF MOORESTOWN TRUST - MUNICIPAL OPEN SPACE FUND STATEMENT OF REVENUES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

ANTICIPATED EXCESS OR BUDGET REALIZED (DEFICIT)

Amount to be Raised by Taxation$ 402,857 $ 407,452 $ 4,595 Interest Income 12,000 28,254 16,254 County Open Space - Matching Funds 132,600 132,600 - Miscellaneous - 1,000 1,000 Reserve for Future Use 2,734,945 2,734,945 -

Total Revenues $ 3,282,402 $ 3,304,251 $ 21,849

The accompanying Notes to the Financial Statement are an integral part of these Statements.

24 EXHIBIT B-3 TOWNSHIP OF MOORESTOWN TRUST - MUNICIPAL OPEN SPACE FUND STATEMENT OF EXPENDITURES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

APPROPRIATIONS BUDGET PAID OR CHARGED ORIGINAL AFTER BUDGET MODIFICATION EXPENDED ENCUMBERED RESERVED CANCELLED

Maintenance of Lands for Recreation & Conservation: Salary and Wages$ 165,000 $ 165,000 $ 137,140 $ - $ 27,860 $ - Other Expenses 322,036 322,036 272,668 49,368 -

Total 487,036 487,036 409,808 - 77,228 -

Capital Improvements: Acquisition of Farmland 250,000 250,000 - - 250,000 - Down Payments on Improvements 22,500 22,500 - - 22,500 -

Total 272,500 272,500 - - 272,500 -

Debt Service: Payment of Bond Principal 53,935 53,935 53,935 - - - Interest on Bonds 1,010 1,010 1,010 - - - Interest on Installment Purchase 112,125 112,125 112,125 - - -

Total Debt Service 167,070 167,070 167,070 - - -

Reserve for Future Use 2,355,796 2,355,796 - - 2,355,796 -

Total Statement of Expenditures$ 3,282,402 $ 3,282,402 $ 576,878 $ - $ 2,705,524 $ -

Disbursed $ 576,878

Total $ 576,878

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26 EXHIBIT C TOWNSHIP OF MOORESTOWN GENERAL CAPITAL FUND STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND FUND BALANCE - REGULATORY BASIS DECEMBER 31, 2018 AND 2017

ASSETS REFERENCE 2018 2017

Cash C-2$ 5,329,866 $ 2,041,709 Accounts Receivable: Department of Transportation C-12 549,250 609,000 CDBG C-12 - 78,000 Due From County C-12 - 90,000 Due from Current Fund C-4,A - 7 Deferred Charges to Future Taxation: Funded C-5 39,200,000 25,315,000 Unfunded C-3 4,417,967 16,764,929

Total Assets$ 49,497,083 $ 44,898,645

LIABILITIES, RESERVES & FUND BALANCE

Reserve for Encumbrances C-6$ 1,286,794 $ 2,952,300 Serial Bonds Payable C-8 39,200,000 25,315,000 Bond Anticipation Notes Payable C-11 - 11,565,000 Improvement Authorizations: Funded C-6 3,888,753 547,633 Unfunded C-6 4,349,297 3,579,690 Reserve For Payment of Debt Service C-10 433,722 333,150 Capital Improvement Fund C-7 134,371 157,621 Due to Current Fund C-4,A 3 - Fund Balance C-1 204,143 448,251

Total Liabilities, Reserves & Fund Balance$ 49,497,083 $ 44,898,645

There were bonds and notes authorized but not issued on December 31, 2018 of $4,417,967 and on December 31, 2017 was $5,199,928.

The accompanying Notes to the Financial Statement are an integral part of these Statements.

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28 EXHIBIT D (Page 1 of 2) TOWNSHIP OF MOORESTOWN WATER-SEWER UTILITY FUND STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND FUND BALANCE - REGULATORY BASIS DECEMBER 31, 2018 AND 2017

ASSETS REFERENCE 2018 2017

Operating Fund: Cash - Treasurer D-5$ 6,259,109 $ 6,703,614 Due Interfunds: Utility Capital Fund D 74 10 Utility Assessment Fund D 37 4 Current Fund A 502 -

Total 6,259,722 6,703,628

Receivables & Other Assets With Full Reserves: Utility Charges Receivable D-9 722,208 918,332

Total Receivable & Other Assets With Full Reserves 722,208 918,332

Total Operating Fund 6,981,930 7,621,960

Assessment Trust Fund: Cash - Treasurer D-5 83,194 82,261 Assessments Receivable D-10 2,123 2,123 Assessments Held in Abeyance D-11 57,202 58,102

Total Assessment Trust Fund 142,519 142,486

Capital Fund: Cash - Treasurer D-5 7,835,540 6,775,347 Fixed Capital: Completed D-12 47,047,346 46,991,471 Authorized & Uncompleted D-13 55,432,500 23,177,500

Total Capital Fund 110,315,386 76,944,318

Total Operating & Capital Fund $ 117,439,835 $ 84,708,764

Bonds and Notes authorized but not issued as of December 31, 2018 was $32,275,595 and as of December 31, 2017 was $4,567,595.

The accompanying Notes to the Financial Statement are an integral part of these Statements.

29 EXHIBIT D (Page 2 of 2) TOWNSHIP OF MOORESTOWN WATER-SEWER UTILITY FUND STATEMENTS OF ASSETS, LIABILITIES, RESERVES AND FUND BALANCE - REGULATORY BASIS DECEMBER 31, 2018 AND 2017

LIABILITIES RESERVES & FUND BALANCE REFERENCE 2018 2017

Operating Fund: Liabilities: Appropriation Reserves D-4$ 875,571 $ 1,320,434 Reserve for Encumbrances D-4 528,958 383,413 Accounts Payable D 71,044 187,035 Accrued Interest on Bonds D-15 355,588 248,702

Subtotal 1,831,161 2,139,584

Reserve for Receivables D 722,208 918,332 Fund Balance D-1 4,428,561 4,564,044

Total Operating Fund 6,981,930 7,621,960

Assessment Trust Fund: Reserve for Assessments D-16 59,325 60,225 Due Water & Sewer Operating Fund D 37 4 Fund Balance D-2 83,157 82,257

Total Assessment Trust Fund 142,519 142,486

Capital Fund: Reserve for Encumbrances D-17 31,990,142 4,808,250 Serial Bonds D-21 24,005,000 20,485,000 Improvement Authorizations: Funded D-17 5,105,920 1,481,016 Unfunded D-17 2,064,176 4,454,500 Reserves for: Amortization D-19 45,024,251 43,990,376 Deferred Amortization D-20 1,175,000 1,126,000 Capital Improvement Fund D-18 603,326 252,326 Due to Utility Operating Fund D 74 10 Fund Balance D-22 347,497 346,840

Total Capital Fund 110,315,386 76,944,318

Total Liabilities, Reserves & Fund Balance $ 117,439,835 $ 84,708,764

The accompanying Notes to the Financial Statement are an integral part of these Statements.

30 EXHIBIT D-1 TOWNSHIP OF MOORESTOWN WATER-SEWER UTILITY OPERATING FUND STATEMENTS OF OPERATIONS AND CHANGE IN OPERATING FUND BALANCE - REGULATORY BASIS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

2018 2017 Revenue & Other Income Realized: Fund Balance Utilized$ 1,788,500 $ 2,383,500 Service Charges 8,355,037 8,117,604 Interest on Investments 150,340 60,695 Miscellaneous 527,621 682,636 Capital Surplus - 100,000 Cancellation of Prior Year Accounts Payable 209 1,959 Unexpended Balance of Appropriation Reserves 1,113,121 126,264

Total Income 11,934,828 11,472,658

Expenditures: Budget Appropriations: Operating 7,879,544 7,880,983 Capital Improvements 497,500 167,500 Debt Service 1,549,311 781,945 Deferred Charges & Statutory Expenditures 355,456 1,205,408

Total Expenditures 10,281,811 10,035,836

Statutory Excess to Fund Balance 1,653,017 1,436,822 Fund Balance January 1 4,564,044 5,510,722

Total 6,217,061 6,947,544 Less: Fund Balance Utilized by Operating Budget 1,788,500 2,383,500

Balance December 31$ 4,428,561 $ 4,564,044

EXHIBIT D-2 WATER-SEWER UTILITY ASSESSMENT TRUST FUND STATEMENT OF FUND BALANCE - (STATUTORY BASIS) FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017

Balance December 31, 2017$ 82,257

Increased by: Lien Receipt 900

Balance December 31, 2018 83,157

The accompanying Notes to the Financial Statement are an integral part of these Statements.

31 EXHIBIT D-3 TOWNSHIP OF MOORESTOWN WATER-SEWER UTILITY OPERATING FUND STATEMENT OF REVENUES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

EXCESS OR ANTICIPATED REALIZED (DEFICIT)

Operating Surplus $ 1,788,500 $ 1,788,500 $ - Water Use Charges 4,805,000 4,722,596 (82,404) Sewer Use Charges 3,305,000 3,632,441 327,441 Interest on Investments 60,000 150,340 90,340 Miscellaneous - Water 459,000 444,621 (14,379) Miscellaneous - Sewer 82,500 83,000 500

Total $ 10,500,000 $ 10,821,498 $ 321,498

Other Revenues/Interfunds $ 1,782,638 Cash Receipts 9,038,860

Total $ 10,821,498

ANALYSIS OF REALIZED REVENUES

Miscellaneous - Water: Penalties on Delinquent Accounts $ 35,565 Meter Pit Covers 4,130 Water Connection Fees 46,610 Tower Rental Fees 350,508 Miscellaneous 7,808

Total $ 444,621

Miscellaneous - Sewer: Sewer Connection Fees $ 69,903 Miscellaneous 13,097

Total $ 83,000

The accompanying Notes to the Financial Statement are an integral part of these Statements.

32 EXHIBIT D-4 TOWNSHIP OF MOORESTOWN WATER-SEWER UTILITY OPERATING FUND STATEMENT OF EXPENDITURES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

BUDGET UNEXPENDED AFTER PAID OR BALANCE BUDGET MODIFICATION CHARGED RESERVED CANCELED

Operating: Salaries & Wages$ 1,927,725 $ 1,927,725 $ 1,773,518 $ 154,207 $ - Other Expenses 6,101,819 6,101,819 5,314,063 637,756 150,000 Capital Improvements: Capital Outlay 147,500 147,500 29,389 68,111 50,000 Capital Improvements Fund 400,000 400,000 400,000 - - Debt Service: Payment of Bond Principal 765,000 765,000 765,000 - - Interest on Bonds 701,000 784,312 784,311 - 1 Interest on Notes 101,500 18,188 - - 18,188 Statutory Expenditures: Contribution to: Social Security System (O.A.S.I.) 150,000 150,000 137,005 12,995 - PERS 200,456 200,456 200,456 - - Unemployment/Disability Insurance 5,000 5,000 2,498 2,502 -

Total Expenditures$ 10,500,000 $ 10,500,000 $ 9,406,240 $ 875,571 $ 218,189

Original Budget$ 10,500,000

Total$ 10,500,000

Accrued Interest on Bonds/Notes$ 106,886 Reserve for Encumbrances 528,958 Capital Improvement Fund 400,000 Refunds (125,956) Cash Disbursed 8,496,352

Total $ 9,406,240

The accompanying Notes to the Financial Statement are an integral part of these Statements.

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34 EXHIBIT E TOWNSHIP OF MOORESTOWN GENERAL FIXED ASSETS ACCOUNT GROUP STATEMENTS OF FIXED ASSETS AND FUND BALANCE - REGULATORY BASIS DECEMBER 31, 2018 AND 2017

ASSETS 2018 2017

Land & Buildings$ 43,273,137 $ 43,273,137 Equipment & Vehicles 12,308,268 11,945,338

Total$ 55,581,405 $ 55,218,475

FUND BALANCE

Investment in General Fixed Assets$ 55,581,405 $ 55,218,475

The accompanying Notes to the Financial Statements are an integral part of these Statements.

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36 TOWNSHIP OF MOORESTOWN COUNTY OF BURLINGTON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

************

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38

TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 1. Summary of Significant Accounting Policies

Description of Financial Reporting

The Township of Moorestown, County of Burlington, New Jersey (hereafter referred to as the “Township") is governed by the Township form of government, with a 5-member Township Council. Administrative responsibilities are assigned to the Township Manager. Policy is determined by Council and the Manager is responsible for carrying out such policy.

Component Units - The financial statements of the component unit of the Township of Moorestown are not presented in accordance with Governmental Accounting Standards Board Statement No. 14, as amended by GASB Statements No. 39, 61 and 80. If the provisions of GASBS No. 14, as amended by GASB Statements No. 39, 61 and 80, had been complied with, the financial statements of the following component unit would have been either blended or discretely presented with the financial statements of the Township, the primary government:

The Free Public Library of the Township of Moorestown 11 West Second Street Moorestown, New Jersey 08057

Annual financial reports may be inspected directly at the office of this component unit during regular business hours.

Basis of Accounting, Measurement Focus and Basis of Presentation - The financial statements of the Township contain all funds and account groups in accordance with the “Requirements of Audit” as promulgated by the State of New Jersey, Department of Community Affairs, Division of Local Government Services. The principles and practices established by the Requirements of Audit 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. Generally, the financial statements are presented using the flow of current financial resources measurement focus and modified accrual basis of accounting with minor exceptions as mandated by these “Requirements”. In addition, the prescribed accounting principles previously referred to differ in certain respects from accounting principles generally accepted in the United State of America applicable to local government units. The more significant differences are explained further in this note.

In accordance with the “Requirements”, the Township accounts for its financial transactions through the use of separate funds, which are described as follows:

Current Fund – This fund accounts for revenues and expenditures for governmental operations of a general nature, including federal and state grant funds.

Trust Funds – These funds account for receipts, custodianship and disbursement of funds in accordance with the purpose for which each reserve was created.

Trust Assessment Fund– This fund accounts for the financing of local improvements deemed to benefit the properties against which assessments are levied.

General Capital Fund – This fund accounts for receipt and disbursement of funds for the acquisition of general capital facilities, other than those acquired in the Current Fund.

39

TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 1. Summary of Significant Accounting Policies (continued):

Utility Operating and Capital Funds – These funds accounts for utility operations that are financed through user fees. The funds are operated on a basis similar to private business enterprises where the intent is that the costs of providing the utility to the general public be financed through user fees. Operations relating to the acquisition of capital facilities for utility purposes are recorded in the Utility Capital Fund.

Utility Assessment Fund – This fund accounts for the financing of utility improvements deemed to benefit the properties against which assessments are levied.

General Fixed Asset Account Group – The Fixed Asset Account Group of accounts is utilized to account for property, land, buildings, and equipment that have been acquired by other funds of the Township.

Budgets and Budgetary Accounting - The Township must adopt an annual budget for its Current and Utility Funds in accordance with N.J.S.A.40A:4 et seq. N.J.S.A.40A:4-5 requires the governing body to introduce and approve the annual municipal budget no later than February 10th of each year. At introduction, the governing body must fix the time and place for a public hearing on the budget and must advertise the time and place at least ten days prior to the hearing in a newspaper published and circulating in the municipality. The public hearing must not be held less than twenty-eight days after the date the budget was introduced. After the hearing has been held, the governing body may, by majority vote, adopt the budget or may amend the budget in accordance with N.J.S.A.40A:4-9. Amendments to adopted budgets, if any are detailed in the statements of revenues and expenditures.

An extension of the statutory dates for introduction, approval and adoption of the municipal budget may be granted by the Director of Local Government Services, with the permission of the Local Finance Board. Budgets are adopted on the same basis of accounting utilized for the preparation of the Township’s financial statements. Once a budget is approved it may be amended after November 1, by a resolution adopted by the governing body.

Cash, Cash Equivalents and Investments - Cash and Cash equivalents include petty cash, change funds and cash on deposit with public depositories. All certificates of deposit are recorded as cash regardless of the date of maturity. Under GAAP, investments are reported at fair value but under regulatory basis of accounting, investments are stated at cost. Therefore unrealized gains or losses on investments have not been recorded.

New Jersey municipal units are required by N.J.S.A.40A:5-14 to deposit public funds in a bank or trust company having its place of business in the State of New Jersey and organized under the laws of the United States or of the State of New Jersey or in the New Jersey Cash Management Fund. N.J.S.A.40A:5- 15.1 provides a list of investments, which may be purchased by New Jersey municipal units. In addition, other State statutes permit investments in obligations issued by local utilities and other state agencies.

N.J.S.A.17:9-41 et seq. establishes the requirements for the security of deposits of governmental units. The statute requires that no governmental unit shall deposit public funds in a public depository unless such funds are secured in accordance with the Governmental Unit Deposit Protection Act, which was enacted in 1970 to protect governmental units from a loss of funds on deposit with a failed banking institution in New Jersey. Public depositories include State or federally chartered banks savings banks or

40

TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 1. Summary of Significant Accounting Policies (continued): associations located in or having a branch office in the State of New Jersey, the deposits of which are federally insured. All public depositories must pledge collateral, having a market value at least equal to five percent of the average daily balance of collected public funds, to secure the deposits of Governmental Units. If a public depository fails, the collateral it has pledged, plus the collateral of all other public depositories, is available to pay the amount of their deposits to the Governmental Units.

The cash management plan adopted by the Township requires it to deposit funds in public depositories protected from loss under the provisions of the Act.

Interfunds - Interfund receivables and payables that arise from transactions between funds are recorded by all funds affected by such transactions in the period in which the transaction is executed. Interfund receivables in the Current Fund are recorded with offsetting reserves, which are created by charges to operations. Income is recognized in the year the receivables are liquidated. Interfund receivables in the other funds are not offset by reserves.

Inventories and Supplies - The cost of inventories of supplies for all funds are recorded as expenditures at the time individual items are purchased. The costs of inventories are not included on the various statements of assets, liabilities, reserves and fund balance.

General Fixed Assets – Accounting for governmental fixed assets, as required by N.J.A.C.5:30-5.6, differs in certain respects from accounting principles generally accepted in the United States of America. In accordance with the regulations, all local units, including municipalities, must maintain a general fixed assets reporting system that establishes and maintains a physical inventory of nonexpendable, tangible property as defined and limited by the U.S. Office of Management and Budget Circular A-87 (Attachment B, Section 19), except that the useful life of such property is at least five years. The Township has adopted a capitalization threshold of $5,000.00, the maximum amount allowed by the Circular. Generally, assets are valued at historical cost; however, assets acquired prior to December 31, 1985 are valued at actual historical cost or estimated historical cost. In some instances, assets are valued at the assessed valuation of the property at the time of acquisition, which approximates fair value. No depreciation of general fixed assets is recorded. Donated general fixed assets are recorded at their acquisition value as of the date of the transaction. Interest costs relative to the acquisition of general fixed assets are recorded as expenditures when paid. Public domain ("infrastructure") general fixed assets consisting of certain improvements such as roads, bridges, curbs and gutters, streets and sidewalks and drainage systems are not capitalized. Expenditures for construction in progress are recorded in the capital funds until such time as the construction is completed and put into operation. The Township is required to maintain a subsidiary ledger detailing fixed assets records to control additions, retirements, and transfers of fixed assets. In addition, a statement of general fixed assets, reflecting the activity for the year, must be included in the Township's basic financial statements.

The regulations require that general fixed assets, whether constructed or acquired through purchase, grant or gift be included in the aforementioned inventory. In addition, property management standards must be maintained that includes accurate records indicating asset description, source, ownership, acquisition cost and date, the percentage of federal participation (if any), and the location, use, and condition of the asset. Periodically, physical inventories must be taken and reconciled with these records. All fixed assets must be adequately controlled to safeguard against loss, damage, or theft.

Utility Fixed Assets – Property and equipment purchases by a utility fund are recorded in the utility capital account at cost and are adjusted for disposition. The amounts shown do not represent replacement

41

TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 1. Summary of Significant Accounting Policies (continued): cost or current value. The reserve for amortization and deferred reserve for amortization in the utility capital fund represent the cost of the utility fixed assets reduced by the outstanding balances of bonds, loans, notes, or other borrowings that are attributable to the acquisition, construction or improvement of those assets.

Foreclosed property – Foreclosed Property or “Property Acquired for Taxes” is recorded in the Current Fund at the assessed valuation when such property was acquired and is fully reserved. Ordinarily it is the intention of the Township to resell foreclosed property in order to recover all or a portion of the delinquent taxes or assessments and to return the property to a taxpaying basis. For this reason the value of foreclosed property has not been included in the General Fixed Assets Account Group. If such property is converted to a municipal use, it will be recorded in the General Fixed Assets Account Group.

Deferred Charges – The recognition of certain expenditures is deferred to future periods. These expenditures or deferred charges are generally overexpenditures of legally adopted budget appropriations or emergency appropriations made in accordance with N.J.S.A.40A:4-46 et seq. Deferred charges are subsequently raised as items of appropriation in budgets of succeeding years.

Fund Balance – Fund Balance included in the Current and Utility Operating Funds represent the amount available for anticipation as revenue in future year’s budgets, with certain restrictions.

Revenues – are recorded when received in cash except for certain amounts, which are due from other governmental units. Revenue from Federal and State grants are realized when anticipated as such in the Township’s budget. Receivables for property taxes are recorded with offsetting reserves on the statement of assets, liabilities, reserves and fund balance of the Township’s Current Fund; accordingly, such amounts are not recorded as revenue until collected. Other amounts that are due the Township, which are susceptible to accrual are also recorded as receivables with offsetting reserves and recorded as revenues when received.

Utility Revenues – Utility charges are levied quarterly based upon a flat service charge and if applicable, an excess consumption or usage charge. Revenues from these sources are recognized on a cash basis. Receivables that are susceptible to accrual are recorded with offsetting reserves on the balance sheet of the Townships utility operating fund.

Property Tax Revenues – are collected in quarterly installments due February 1, May 1, August 1 and November 1. The amount of tax levied includes not only the amount required in support of the Township’s annual budget, but also the amounts required in support of the budgets of the County of Burlington, Fire Districts and the Moorestown Township School District. Unpaid property taxes are subject to tax sale in accordance with statutes.

County Taxes – The municipality is responsible for levying, collecting and remitting County taxes for the County of Burlington. Operations is charged for the amount due the County for the year, based upon the ratables required to be certified to the County Board of Taxation by January 10th of the current year. In addition, operations is charged for the County share of Added and Omitted Taxes certified to the County Board of Taxation by October 10th of the current year and due to be paid to the County by February 15th of the following year.

42

TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 1. Summary of Significant Accounting Policies (continued):

School Taxes – The municipality is responsible for levying, collecting and remitting school taxes for the Moorestown Township School District. Operations are charged for the full amount required to be raised from taxation to operate the local school district July 1 to June 30.

Deferred School Taxes – School taxes raised in advance in the Current Fund for a school fiscal year (July I to June 30) which remain unpaid at December 31 of the calendar year levied may be deferred to fund balance to the extent of not more than 50% of the annual levy providing no requisition has been made by the school district for such amount.

Reserve for Uncollected Taxes – The inclusion of the “Reserve for Uncollected Taxes” appropriation in the Township’s annual budget protects the Township from taxes not paid currently. The Reserve, the minimum amount of which is determined on the percentage of collections experienced in the immediate preceding year, with certain exceptions, is required to provide assurance that cash collected in the current year will provide sufficient cash flow to meet expected obligations.

Expenditures – are recorded on the “budgetary” basis of accounting. Generally, expenditures are recorded when an amount is encumbered through the issuance of a numerically controlled purchase order or when a contract is executed as required by Technical Accounting Directive No. 85-1. When an expenditure is paid, the amount encumbered is simultaneously liquidated in its original amount. Encumbrances are offset by an account entitled reserve for encumbrances. The reserve is classified as a cash liability under New Jersey municipal accounting. At December 31, this reserve represents the portion of appropriation reserves that has been encumbered and is subject to the same statutory provisions as appropriation reserves. Appropriations for interest payments on outstanding general capital bonds and notes are provided on the cash basis. Appropriations for interest payments on outstanding utility capital bonds and notes are provided on the accrual basis.

Appropriation Reserves – Appropriation reserves covering unexpended appropriation balances are automatically created at year-end and recorded as liabilities, except for amounts, which may be cancelled by the governing body. Appropriation reserves and reserve for encumbrances at current year end are available until December 31st of the succeeding year to meet specific claims, commitments or contracts incurred during the preceding year. Any unspent balances at this time are lapsed appropriation reserves and recorded as income.

Long-Term Debt - Long-Term Debt relative to the acquisition of capital assets, is recorded as a liability in the General and Utility Capital Fund. Where an improvement is a “local improvement”, i.e. assessable upon completion, long-term debt associated with that portion of the cost of the improvement to be funded by assessments is transferred to the Trust Fund upon the confirmation of the assessments or when the improvement is fully and permanently funded.

Compensated Absences – Expenditures relating to obligations for unused vested accumulated vacation and sick leave are not recorded until paid; however, municipalities may establish and budget reserve funds subject to NJSA 40A:4-39 for the future payment of compensated absences.

Recent Accounting Pronouncements – The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. GASB adopts accounting statements to be used by governmental units when reporting financial position and results of operations in accordance with accounting principles generally accepted in the United States of America (GAAP). The municipalities in the State of New Jersey do not prepare

43

TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 1. Summary of Significant Accounting Policies (continued): their financial statements in accordance with GAAP and thus do not comply with all of the GASB pronouncements. The following GASB pronouncement effective for the current year did have a significant impact on the Township’s financial statements.

Statement No. 75, Accounting and Financial Reporting for Post-employment Benefits Other than Pensions. This Statement replaces the requirements of Statement No. 45, Accounting and Financial Reporting by Employers for Post- employment Benefits Other Than Pensions, as amended, and No. 57, OPEB Measurements by Agency Employers and Agent Multi-Employer Plans, for OPEB. Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, establishes new accounting and financial reporting requirements for OPEB Plans.

Note 2. Deposits and Investments

The Township is governed by the deposit and investment limitations of New Jersey state law.

Deposits

Custodial Credit Risk Related to Deposits - Custodial credit risk is the risk that, in the event of a bank failure, the Township’s deposits may not be returned. Although the Township does not have a formal policy regarding custodial credit risk, NJSA 17:9-41 et seq. requires that the governmental units shall deposit public funds in public depositories protected from loss under the provisions of the Governmental Unit Deposit Protection Act (GUDPA). GUDPA is a supplemental insurance program set forth by the New Jersey Legislature to protect the deposits of local governmental agencies. The program is administered by the Commissioner of the New Jersey Department of Banking and Insurance. Under the Act, the first $250,000 of governmental deposits in each insured depository is protected by FDIC. Public funds owned by the Township in excess of FDIC insured amounts are protected by GUDPA. However, GUDPA does not protect intermingled trust funds such as salary withholdings, bail funds or funds that may pass to the Township relative to the happening of a future condition. Such funds are shown as Uninsured and Uncollateralized in the schedule below.

As of December 31, 2018, the Township’s bank balance of $52,397,414 was insured or collateralized as follows:

Insured under FDIC and GUDPA $ 44,257,233 Uninsured and Uncollateralized 8,140,181

$ 52,397,414

Investments

The Township had no investments as of December 31, 2018.

44

TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 3. Property Taxes

The following is a three-year comparison of certain statistical information relative to property taxes and property tax collections for the current and previous two years.

Comparison Schedule of Tax Rates (Excludes Fire District Tax Rates) 2018 2017 2016

Tax Rate $ 2.486 2.508$ 2.498$

Apportionment of Tax Rate: Municipal 0.366 0.371 0.371 Municipal Library 0.038 0.038 0.039 Municipal Open Space 0.010 0.010 0.010 County General 0.391 0.434 0.448 Local School 1.681 1.655 1.630

Assessed Valuation

Year Amount

2018 $ 4,028,675,687 2017 4,016,243,417 2016 4,001,990,084

Comparison of Tax Levies and Collections

Cash Percentage Of Year Tax Levy Collections Collection

2018 $ 104,209,061 $ 103,167,495 99.00% 2017 105,319,276 104,022,713 98.76% 2016 103,601,497 102,392,996 98.83%

Delinquent Taxes and Tax Title Liens

Tax Title Delinquent Total Percentage Of Year Liens Taxes Delinquent Tax Levy

2018 $ 1,220,143 $ 727,120 $ 1,947,263 1.87% 2017 1,166,115 793,927 1,960,042 1.86% 2016 1,113,057 889,129 2,002,186 1.93%

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 3. Property Taxes (continued):

Number of Tax Title Liens

Year Number

2018 19 2017 19 2016 21

The last tax sale was held on December 4, 2018.

Note: 4: Property Acquired By Tax Title Lien Liquidation

The value of properties acquired by liquidation of tax title liens based on the last assessed valuation of such properties as of December 31, 2018 was as follows:

Year Amount

2018 $ 101,300 2017 101,300 2016 101,300

Note: 5: Water and Sewer Utility Service Charges

The following is a three-year comparison of water and sewer utility charges (rents) and collections for the current and previous two years.

Cash Percentage Of Year Beginning Balance Levy Total Collections Collection

2018 $ 918,332 $ 8,214,649 $ 9,132,981 $ 8,364,637 91.58% 2017 795,597 8,302,811 9,098,408 8,180,076 89.90% 2016 706,331 8,408,715 9,115,046 8,319,449 91.27%

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 6. Fund Balances Appropriated

The following schedule details the amount of fund balances available at the end of the current year and two previous years and the amounts utilized in the subsequent year’s budgets:

Utilized in Percentage Balance Budget of of Fund Year December 31, Succeeding Year Balance Used

Current Fund: 2018$ 8,696,961 $ 2,605,000 29.95% 2017 8,408,870 2,605,000 30.98% 2016 7,625,739 2,011,800 26.38%

Utility Operating Fund: 2018 $ 4,428,561 $ 1,902,500 42.96% 2017 4,564,044 1,788,500 39.19% 2016 5,510,722 2,383,500 43.25%

Note 7. Disaggregated Receivable and Payable Balances

There are no significant components of receivable and payable balances reported in the financial statements.

Note 8. Interfund Receivables, Payables and Transfers

The following interfund balances were recorded in the various statements of assets liabilities, reserves and fund balances at December 31, 2018:

Interfund Interfund Fund Receivable Payable

Current Fund$ 25,030 $ 231,011 State and Federal Grant Fund 222,811 - Animal Control Trust Fund - 9,661 Trust Assessment Fund - 147 Trust Other Fund 7,698 15,219 Capital Fund - 3 Utility Assessment Fund - 37 Utility Operating Fund 613 - Utility Capital Fund - 74

$ 256,152 $ 256,152

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 8. Interfund Receivables, Payables and Transfers (continued):

The interfund receivables and payables above predominately resulted from payment made by certain funds on behalf of other funds. All interfund balances are expected to be repaid within one year.

A summary of interfund transfers is as follows:

Transfers Transfers Fund In Out

Current Fund $ 145,040 $ 12,443 State and Federal Grant Fund - 109,579 Trust Other Fund 12,443 35,461 Utility Operating Fund 900 400,000 Utility Assessment Fund - 900 Utility Capital Fund 400,000 -

$ 558,383 $ 558,383

Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them (i.e. interest earning), (2) provide cash flow to other funds to temporary finance expenditures that are on a reimbursable basis (i.e. grants), (3) when no bank account exists for a fund, and (4) utilizing surplus or fund balance from one fund as budgeted revenue in another.

Note 9. Fixed Assets

The following is a summary of changes in the General Fixed Assets Account Group for the year ended December 31, 2018.

Balance Balance December 31, December 31, 2017 Additions Deletions 2018

Land & Buildings $ 43,273,137 -$ -$ $ 43,273,137 Vehicles & Equipment 11,945,338 362,930 - 12,308,268

$ 55,218,475 $ 362,930 -$ $ 55,581,405

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 10. Pension Obligations

A. Public Employees’ Retirement System (PERS)

Plan Description - The State of New Jersey, Public Employees' Retirement System (PERS) is a cost- sharing multiple-employer defined benefit pension plan administered by the State of New Jersey, Division of Pensions and Benefits (the Division). For additional information about PERS, please refer to Division's Comprehensive Annual Financial Report (CAFR) which can be found at http://www.nj.gov/treasury/pensions/financial-reports.shtml.

The vesting and benefit provisions are set by N.J.S.A. 43:15A. PERS provides retirement, death and disability benefits. All benefits vest after ten years of service, except for medical benefits, which vest after 25 years of service or under the disability provisions of PERS.

The following represents the membership tiers for PERS:

Tier Definition 1 Members who were enrolled prior to July 1, 2007 2 Members who were eligible to enroll on or after July 1, 2007 and prior to November 2, 2008 3 Members who were eligible to enroll on or after November 2, 2008 and prior to May 22, 2010 4 Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011 5 Members who were eligible to enroll on or after June 28, 2011

Service retirement benefits of 1/55th of final average salary for each year of service credit is available to tiers 1 and 2 members upon reaching age 60 and to tier 3 members upon reaching age 62. Service retirement benefits of 1/60th of final average salary for each year of service credit is available to tier 4 members upon reaching age 62 and tier 5 members upon reaching age 65. Early retirement benefits are available to tiers 1 and 2 members before reaching age 60, tiers 3 and 4 with 25 or more years of service credit before age 62 and tier 5 with 30 or more years of service credit before age 65. Benefits are reduced by a fraction of a percent for each month that a member retires prior to the age at which a member can receive full early retirement benefits in accordance with their respective tier. Tier 1 members can receive an unreduced benefit from age 55 to age 60 if they have at least 25 years of service. Deferred retirement is available to members who have at least 10 years of service credit and have not reached the service retirement age for the respective tier.

Basis of Presentation - The schedules of employer allocations and the schedules of pension amounts by employer (collectively, the Schedules) present amounts that are considered elements of the financial statements of PERS or its participating employers. Accordingly, they do not purport to be a complete presentation of the financial position or changes in financial position of PERS or the participating employers. The accompanying Schedules were prepared in accordance with U.S. generally accepted accounting principles. Such preparation requires management of PERS to make a number of estimates and assumptions relating to the reported amounts. Due to the inherent nature of these estimates, actual results could differ from those estimates.

Contributions - The contribution policy for PERS is set by N.J.S.A. 43:15A and requires contributions by active members and contributing employers. State legislation has modified the amount that is contributed by the State. The State's pension contribution is based on an actuarially determined amount, which includes the employer portion of the normal cost and an amortization of the unfunded accrued liability. Funding for noncontributory group insurance benefits is based on actual claims paid. For the fiscal year 2018, the State's pension contribution was less than the actuarial determined amount. The local

49

TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 10. Pension Obligations (continued)

A. Public Employees’ Retirement System (PERS) employers' contribution amounts are based on an actuarially determined rate, which includes the normal cost and unfunded accrued liability. Chapter 19, P.L. 2009 provided an option for local employers of PERS to contribute 50% of the normal and accrued liability contribution amounts certified for payments due in State fiscal year 2009. Such employers will be credited with the full payment and any such amounts will not be included in their unfunded liability. The actuaries will determine the unfunded liability of those retirement systems, by employer, for the reduced normal and accrued liability contributions provided under this law. This unfunded liability will be paid by the employer in level annual payments over a period of 15 years beginning with the payments due in the fiscal year ended June 30, 2012 and will be adjusted by the rate of return on the actuarial value of assets. For the year ended December 31, 2018, the Township’s contractually required contribution to PERS plan was $696,712.

Components of Net Pension Liability - At December 31, 2018, the Township’s proportionate share of the PERS net pension liability was $13,791,324. The net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was determined using update procedures to roll forward the total pension liability from an actuarial valuation as of July 1, 2017, which was rolled forward to June 30, 2018. The Township’s proportion of the net pension liability was based on the Township’s actual contributions to the plan relative to the total of all participating employers’ contributions for the year ended June 30, 2018. The Township’s proportion measured as of June 30, 2018, was .0700440500% which was a decrease of .0062788331% from its proportion measured as of June 30, 2017.

Collective Balances at December 31, 2018 and December 31, 2017

12/31/2018 12/30/2017

Actuarial valuation date (including roll forward) June 30, 2018 June 30, 2017

Deferred Outflows of Resources $ 2,647,607 $ 4,295,866 Deferred Inflows of Resources 6,284,802 4,316,287 Net Pension Liability 13,791,324 17,766,747

Township's portion of the Plan's total net pension Liability 0.07004% 0.07632%

Pension Expense and Deferred Outflows/Inflows of Resources - At December 31, 2018, the Township’s proportionate share of the PERS expense, calculated by the plan as of the June 30, 2018 measurement date is $339,573. This expense is not recognized by the Township because of the regulatory basis of accounting as described in Note 1, but as previously mentioned the Township contributed $696,712 to the plan in 2018.

50

TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 10. Pension Obligations (continued)

A. Public Employees’ Retirement System (PERS)

At December 31, 2018, the Township reported deferred outflows of resources and deferred inflows of resources related to PERS from the following sources:

Outflows Deferred Inflows of Resources of Resources

Differences between Expected and Actual Experience $ 263,003 $ 71,113

Changes of Assumptions 2,272,582 4,409,732

Net Difference between Projected and Actual Earnings on Pension Plan Investments - 129,363

Changes in Proportion and Differences between Township Contributions and Proportionate Share of Contributions 112,022 1,674,594

$ 2,647,607 $ 6,284,802

The Township will amortize the above sources of deferred outflows and inflows related to PERS over the following number of years:

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 10. Pension Obligations (continued)

A. Public Employees’ Retirement System (PERS)

De fe rre d De fe rre d Outflow of Inflow of Resources Resources Differences between Expected and Actual Experience Year of Pension Plan Deferral: June 30, 2014 - - June 30, 2015 5.72 - June 30, 2016 5.57 - June 30, 2017 5.48 - June 30, 2018 5.63 -

Changes of Assumptions Year of Pension Plan Deferral: June 30, 2014 6.44 - June 30, 2015 5.72 - June 30, 2016 5.57 - June 30, 2017 - 5.48 June 30, 2018 - 5.63

Net Difference between Projected and Actual Earnings on Pension Plan Investments Year of Pension Plan Deferral: June 30, 2014 - 5.00 June 30, 2015 - 5.00 June 30, 2016 5.00 - June 30, 2017 5.00 - June 30, 2018 5.00 -

Changes in Proportion and Differences between Contributions and Proportionate Share of Contributions Year of Pension Plan Deferral: June 30, 2014 6.44 6.44 June 30, 2015 5.72 5.72 June 30, 2016 5.57 5.57 June 30, 2017 5.48 5.48 June 30, 2018 5.63 5.63

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 10. Pension Obligations (continued)

A. Public Employees’ Retirement System (PERS)

The following is a summary of the deferred outflows of resources and deferred inflows of resources related to PERS that will be recognized in future periods:

Year Ending Dec 31, Amount

2019 $ 2,560,319 2020 2,344,850 2021 (5,989,661) 2022 (2,149,815) 2023 (402,890)

$ (3,637,197)

Actuarial Assumptions - The total pension asset/(liability) as of the measurement date was determined by using an actuarial valuation as noted in the table below, with update procedures used to roll forward the total pension liability to the measurement date. The actuarial valuations used the following actuarial assumptions:

Inflation 2.25%

Salary Increases: Through 2026 1.65% - 4.15% Based on Age Thereafter 2.65% - 5.15% Based on Age

Investment Rate of Return 7.00%

Mortality Rate Table RP-2000

Period of Actuarial Experience Study upon which Actuarial Assumptions were Based July 1, 2011 - June 30, 2014

Pre-retirement mortality rates were based on the RP-2000 Employee Preretirement Mortality Table for male and female active participants. For State employees, mortality tables are set back 4 years for males and females. For local employees, mortality tables are set back 2 years for males and 7 years for females. In addition, the tables provide for future improvements in mortality from the base year of 2013 using a generational approach based on the plan actuary’s modified MP-2014 projection scale. Post-retirement mortality rate were based on the RP-2000 Combined Healthy Male and Female Mortality Tables (setback 1 year for males and females) for service retirements and beneficiaries of former members and a one-year static projection based on the mortality improvement Scale AA. In addition, the tables for service

53

TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 10. Pension Obligations (continued)

A. Public Employees’ Retirement System (PERS) retirements and beneficiaries of former members provide for future improvements in mortality from the base year of 2012 using a generational approach based on the plan actuary’s modified MP-2014 projection scales. Disability retirement rates used to value disabled retirees were based on the RP-2000 Disabled Mortality Table (set back 3 years for males and set forward 1 year for females).

The actuarial assumptions used in the July 1, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2011 to June 30, 2014. It is likely that future experience will not exactly conform to these assumptions. To the extent that actual experience deviates from these assumptions, the emerging liabilities may be higher or lower than anticipated. The more the experience deviates, the larger the impact on future financial statements.

Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of return on plan investments (7.00% at June 30, 2018) is determined by the State Treasurer, after consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. The long-term expected rate of return was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic rates of return for each major asset class included in PERS’s target asset allocation as of June 30, 2018 are summarized in the following table:

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 10. Pension Obligations (continued)

A. Public Employees’ Retirement System (PERS)

Long-Term Target Expected Real Asset Class Allocation Rate of Return

Risk Mitigation Strategies 5.00% 5.51% Cash Equivalents 5.50% 1.00% U.S. Treasuries 3.00% 1.87% Investment Grade Credit 10.00% 3.78% High Yield 2.50% 6.82% Global Diversified Credit 5.00% 7.10% Credit Oriented Hedge Funds 1.00% 6.60% Debt Related Private Equity 2.00% 10.63% Debt Related Real Estate 1.00% 6.61% Private Real Asset 2.50% 11.83% Equity Related Real Estate 6.25% 9.23% U.S. Equity 30.00% 8.19% Non-U.S. Developed Markets Equity 11.50% 9.00% Emerging Markets Equity 6.50% 11.64% Buyouts/Venture Capital 8.25% 13.08%

100.00%

Discount Rate - The discount rate used to measure the total pension liability was 5.66% as of June 30, 2018. The single blended discount rate was based on long-term expected rate of return on pension plan investments of 7.00%, and a municipal bond rate of 3.87% as of June 30, 2018 based on the Bond Buyer Go 20-Bond Municipal Bond Index, which includes tax-exempt general obligation municipals bonds with an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made based on the contribution rate in the most recent fiscal year. The State employer contributed 50% of the actuarially determined contributions and the local employers contributed 100% of their actuarially determined contributions. Based on those assumptions, the plan’s fiduciary net position was projected to be available to make projected future benefit payments of current plan members through 2046. Therefore, the long-term expected rate of return on plan investments was applied to projected benefit payments through 2046 and the municipal bond rate was applied to projected benefit payments after that date in determining the total pension liability.

Sensitivity of the Township’s proportionate share of the Net Pension Liability to Changes in the Discount Rate - The following presents the Township’s proportionate share of the net pension liability calculated using the discount rate as disclosed above, as well as what the Township’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (4.66%) or 1-percentage-point higher (6.66%) than the current rate:

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 10. Pension Obligations (continued)

A. Public Employees’ Retirement System (PERS)

1% Current 1% Decrease Discount Rate Increase (4.66%) (5.66%) (6.66%)

Township's Proportionate Share of the Net Pension Liability$ 17,341,001 $ 13,791,324 $ 10,813,372

B. Police and Firemen’s Retirement System (PFRS)

Plan Description – The State of New Jersey, Police and Firemen’s Retirement System (PFRS) is a cost- sharing multiple-employer defined benefit pension plan administered by the State of New Jersey, Division of Pensions and Benefits (the Division). For additional information about PFRS, please refer to the Division’s Comprehensive Annual Financial Report (CAFR) which can be found at http://www.nj.gov/treasury/pensions/financial-reports.shtml.

The vesting and benefit provisions are set by N.J.S.A. 43:16A. PFRS provides retirement as well as death and disability benefits. All benefits vest after ten years of service, except disability benefits which vest after four years of service.

The following represents the membership tiers for PFRS:

Tier Definition 1 Members who were enrolled prior to May 22, 2010. 2 Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011 3 Members who were eligible to enroll on or after June 28, 2011

Service retirement benefits are available at age 55 and are generally determined to be 2% of final compensation for each year of creditable service, as defined, up to 30 years plus 1% for each year of service in excess of 30 years. Members may seek special retirement after achieving 25 years of creditable service, in which benefits would equal 65% (tiers 1 and 2 members) and 60% (tier 3 members) of final compensation plus 1 % for each year if creditable service over 25 years but not to exceed 30 years. Members may elect deferred retirement benefits after achieving ten years of service, in which case benefits would begin at age 55 equal to 2% of final compensation for each year of service.

Basis of Presentation - The schedules of employer allocations and the schedules of pension amounts by employer (collectively, the Schedules) present amounts that are considered elements of the financial statements of PFRS or its participating employers. Accordingly, they do not purport to be a complete presentation of the financial position or changes in financial position of PFRS or the participating employers. The accompanying Schedules were prepared in accordance with U.S. generally accepted accounting principles. Such preparation requires management of PFRS to make a number of estimates and assumptions relating to the reported amounts. Due to the inherent nature of these estimates, actual results could differ from those estimates.

Contributions - The contribution policy for PFRS is set by N.J.S.A. 43:16A and requires contributions by active members and contributing employers. State legislation has modified the amount that is contributed

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 10. Pension Obligations (continued)

B. Police and Firemen’s Retirement System (PFRS) by the State. The State's contribution amount is based on an actuarially determined rate which includes the normal cost and unfunded accrued liability. For fiscal year 2018, the State contributed an amount less than the actuarially determined amount. The Local employers’ contribution amounts are based on an actuarially determined rate which includes the normal cost and unfunded accrued liability. Chapter 19, P.L. 2009 provided an option for local employers of PFRS to contribute 50% of the normal and accrued liability contribution amounts certified for payments due in State fiscal year 2009. Such employers will be credited with the full payment and any such amounts will not be included in their unfunded liability. The actuaries will determine the unfunded liability of those retirement systems, by employer, for the reduced normal and accrued liability contributions provided under this law. This unfunded liability will be paid by the employer in level annual payments over a period of 15 years beginning with the payments due in the fiscal year ended June 30, 2012 and will be adjusted by the rate of return on the actuarial value of assets. For the year ended December 31, 2018, the Township’s contractually required contributions to PFRS plan was $972,826.

The employee contributions for PFRS are 10.00% of employees’ annual compensation, as defined.

Net Pension Liability and Pension Expense - At December 31, 2018 the Township’s proportionate share of the PFRS net pension liability was $13,464,916. The net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was determined using update procedures to roll forward the total pension liability from an actuarial valuation as of July 1, 2017, to the measurement date of June 30, 2018. The Township’s proportion of the net pension liability was based on the Township’s actual contributions to the plan relative to the total of all participating employers’ contributions for the year ended June 30, 2018. The Township’s proportion measured as of June 30, 2018, was .0995068433%, which was an increase of .0021490998% from its proportion measured as of June 30, 2017.

Collective Balances at December 31, 2018 and Decmber 31, 2017

12/31/2018 12/31/2017

Actuarial valuation date (including roll forward) June 30, 2018 June 30, 2017

Deferred Outflows of Resources $ 1,623,623 $ 2,308,874 Deferred Inflows of Resources 4,501,492 3,782,922 Net Pension Liability 13,464,916 15,030,153

Township's portion of the Plan's total net pension Liability 0.09951% 0.09736%

Pension Expense and Deferred Outflows/Inflows of Resources – At December 31, 2018, the Township’s proportionate share of the PFRS expense, calculated by the plan as of the June 30, 2018 measurement date was $811,817. This expense is not recognized by the Township because of the regulatory basis of accounting as described in Note 1, but as previously mentioned the Township contributed $972,826 to the plan in 2018.

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 10. Pension Obligations (continued)

B. Police and Firemen’s Retirement System (PFRS)

At December 31, 2018, the Township had deferred outflows of resources and deferred inflows of resources related to PFRS from the following sources:

De fe rre d Outflows De fe rred Inflows of Resources of Resources

Differences between Expected and Actual Experience $ 136,988 $ 55,721

Changes of Assumptions 1,155,782 3,450,826

Net Difference between Projected and Actual Earnings on Pension Plan Investments - 73,665

Changes in Proportion and Differences between Township Contributions and Proportionate Share of Contributions 330,853 921,280

$ 1,623,623 $ 4,501,492

The Township will amortize the above sources of deferred outflows and inflows related to PFRS over the following number of years:

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 10. Pension Obligations (continued)

B. Police and Firemen’s Retirement System (PFRS)

De fe rre d De fe rre d Outflow of Inflow of Resources Resources Differences between Expected and Actual Experience Year of Pension Plan Deferral: June 30, 2014 - - June 30, 2015 - 5.53 June 30, 2016 - 5.58 June 30, 2017 5.59 - June 30, 2018 5.73 -

Changes of Assumptions Year of Pension Plan Deferral: June 30, 2014 6.17 - June 30, 2015 5.53 - June 30, 2016 5.58 - June 30, 2017 - 5.59 June 30, 2018 - 5.73

Net Difference between Projected and Actual Earnings on Pension Plan Investments Year of Pension Plan Deferral: June 30, 2014 - 5.00 June 30, 2015 - 5.00 June 30, 2016 5.00 - June 30, 2017 5.00 - June 30, 2018 5.00 -

Changes in Proportion and Differences between Contributions and Proportionate Share of Contributions Year of Pension Plan Deferral: June 30, 2014 6.17 6.17 June 30, 2015 5.53 5.53 June 30, 2016 5.58 5.58 June 30, 2017 5.59 5.59 June 30, 2018 5.73 5.73

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 10. Pension Obligations (continued)

B. Police and Firemen’s Retirement System (PFRS)

The following is a summary of the deferred outflows of resources and deferred inflows of resources related to PERS that will be recognized in future periods:

Year Ending Dec 31, Amount

2019 $ 148,035 2020 (326,568) 2021 (1,110,707) 2022 (1,371,177) 2023 (217,450)

$ (2,877,867)

Special Funding Situation – Under N.J.S.A. 43:16A-15, local participating employers are responsible for their own contributions based on actuarially determined amounts, except where legislation was passed which legally obligated the State if certain circumstances occurred. The legislation which legally obligates the state is as follows: Chapter 8, P.L. 2000, Chapter 318, P.L. 2001, Chapter 86, P.L. 2001, Chapter 511, P.L, 1991, Chapter 109, P.L. 1979, Chapter 247, P.L. 1993 and Chapter 201, P.L. 2001. The amounts contributed on behalf of the local participating employers under this legislation is considered to be a special funding situation as defined by GASB Statement No. 68 and the State is treated as a non- employer contributing entity. Since the local participating employers do not contribute under this legislation directly to the plan (except for employer specific financed amounts), there is no net pension liability to report in the financial statements of the local participating employers related to this legislation.

Additionally, the State’s proportionate share of the PFRS net pension liability attributable to the Township is $1,828,986 as of December 31, 2018. The net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was determined using update procedures to roll forward the total pension liability from an actuarial valuation as of July 1, 2017, to the measurement date of June 30, 2018. The State’s proportion of the net pension liability associated with the Township was based on a projection of the Township’s long-term share of contributions to the pension plan relative to the projected contributions of all participating members, actuarially determined. The State’s proportion measured as of June 30, 2018 was .0995068433%, which was an increase of .0021490998% from its proportion measured as of June 30, 2017, which is the same proportion as the Township’s. At December 31, 2018, the Township’s and the State of New Jersey’s proportionate share of the PFRS net pension liability were as follows:

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 10. Pension Obligations (continued)

B. Police and Firemen’s Retirement System (PFRS)

Township's Proportionate Share of Net Pension Liability$ 13,464,916

State of New Jersey's Proportionate Share of Net Pension Liability Associated with the Township 1,828,986

$ 15,293,902

At December 31, 2018, the State’s proportionate share of the PFRS expense, associated with the Township, calculated by the plan as of the June 30, 2018 measurement date was $216,641.

Actuarial Assumptions - The total pension asset/(liability) as of the measurement date was determined by using an actuarial valuation as noted in the table below, with update procedures used to roll forward the total pension liability to the measurement date. The actuarial valuations used the following actuarial assumptions:

Inflation 2.25%

Salary Increases: Through 2026 2.10% - 8.98% Based on Age Thereafter 3.10% - 9.98% Based on Age

Investment Rate of Return 7.00%

Mortality Rate Table RP-2000

Period of Actuarial Experience Study upon which Actuarial Assumptions were Based July 1, 2010 - June 30, 2013

Pre-retirement mortality rates were based on the RP-2000 Employee Preretirement Mortality Table for male and female active participants. For State employees, mortality tables are set back 4 years for males and females. For local employees, mortality tables are set back 2 years for males and 7 years for females. In addition, the tables provide for future improvements in mortality from the base year of 2012 using a generational approach based on the plan actuary’s modified MP-2014 projection scale. Post-retirement mortality rate were based on the RP-2000 Combined Healthy Male and Female Mortality Tables (setback 1 year for males and females) for service retirements and beneficiaries of former members and a one-year static projection based on the mortality improvement Scale AA. In addition, the tables for service retirements and beneficiaries of former members provide for future improvements in mortality from the base year of 2012 using a generational approach based on the plan actuary’s modified MP-2014 projection scales. Disability retirement rates used to value disabled retirees were based on the RP-2000 Disabled Mortality Table (set back 3 years for males and set forward 1 year for females).

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 10. Pension Obligations (continued)

B. Police and Firemen’s Retirement System (PFRS)

The actuarial assumptions used in the July 1, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2010 to June 30, 2013.

Long-Term Expected Rate of Return - In accordance with State statute, the long-term expected rate of return on plan investments (7.00% at June 30, 2018) is determined by the State Treasurer, after consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. The long-term expected rate of return was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic rates of return for each major asset class included in PFRS’s target asset allocation as of June 30, 2018 are summarized in the following table:

Long-Term Target Expected Real Asset Class Allocation Rate of Return

Risk Mitigation Strategies 5.00% 5.51% Cash Equivalents 5.50% 1.00% U.S. Treasuries 3.00% 1.87% Investment Grade Credit 10.00% 3.78% High Yield 2.50% 6.82% Global Diversified Credit 5.00% 7.10% Credit Oriented Hedge Funds 1.00% 6.60% Debt Related Private Equity 2.00% 10.63% Debt Related Real Estate 1.00% 6.61% Private Real Asset 2.50% 11.83% Equity Related Real Estate 6.25% 9.23% U.S. Equity 30.00% 8.19% Non-U.S. Developed Markets Equity 11.50% 9.00% Emerging Markets Equity 6.50% 11.64% Buyouts/Venture Capital 8.25% 13.08%

100.00%

Discount Rate - The discount rate used to measure the total pension liability was 6.51% as of June 30, 2018. The single blended discount rate was based on long-term expected rate of return on pension plan investments of 7.00%, and a municipal bond rate of 3.87% as of June 30, 2018 based on the Bond Buyer Go 20-Bond Municipal Bond Index, which includes tax-exempt general obligation municipals bonds with an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 10. Pension Obligations (continued)

B. Police and Firemen’s Retirement System (PFRS) that contributions from employers will be made based on the contribution rate in the most recent fiscal year. The State employer contributed 40% of the actuarially determined contributions and the local employers contributed 100% of their actuarially determined contributions. Based on those assumptions, the plan’s fiduciary net position was projected to be available to make projected future benefit payments of current plan members through 2057. Therefore, the long-term expected rate of return on plan investments was applied to projected benefit payments through 2057 and the municipal bond rate was applied to projected benefit payments after that date in determining the total pension liability.

Sensitivity of the Township’s proportionate share of the Net Pension Liability to Changes in the Discount Rate - The following presents the Township’s proportionate share of the net pension liability calculated using the discount rate as disclosed above, as well as what the Township’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.51%) or 1-percentage-point higher (7.51%) than the current rate:

1% Current 1% Decrease Discount Rate Increase (5.51%) (6.51%) (7.51%)

Township's Proportionate Share of the Net Pension Liability$ 18,021,119 $ 13,464,916 $ 9,680,596

State of New Jersey's Proportionate Share of Net Pension Liability associated with the Township 2,447,871 1,828,986 1,314,949

$ 20,468,990 $ 15,293,902 $ 10,995,545

Related Party Investments - The Division of Pensions and Benefits does not invest in securities issued by the Township.

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 11. Municipal Debt

The following schedule represents the Township’s summary of debt, as filed in the Township’s Annual Debt Statement required by the Local Bond Law of New Jersey for the current and two previous years:

2018 2017 2016 Issued: General: Bonds, Notes and Loans$ 39,200,000 $ 36,880,000 $ 33,970,750 Utility: Bonds, Notes and Loans 24,005,000 20,485,000 9,624,250

Total Debt Issued 63,205,000 57,365,000 43,595,000

Authorized but not issued: General: Bonds, Notes and Loans 4,417,967 5,199,929 3,798,206 Utility: Bonds, Notes and Loans 32,275,595 4,567,595 9,085,845

Total Authorized But Not Issued 36,693,562 9,767,524 12,884,051

Total Gross Debt $ 99,898,562 $ 67,132,524 $ 56,479,051

Deductions: General: Funds on Hand For Payment of Bonds and Notes: Reserve for Debt Service$ 433,722 $ 333,150 $ 386,538 Utility: Self Liquidating Debt 56,280,595 25,052,595 18,710,095

Total Deductions 56,714,317 25,385,745 19,096,633

Total Net Debt $ 43,184,245 $ 41,746,779 $ 37,382,418

Summary of Statutory Debt Condition - Annual Debt Statement

The following schedule is a summary of the previous schedule and is prepared in accordance with the required method of setting up the Annual Debt Statement:

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 11. Municipal Debt (continued):

Gross Debt Deductions Net Debt

Local School Debt $ 53,705,000 $ 53,705,000 $ - General Debt 43,617,967 433,722 43,184,245 Utility Debt 56,280,595 56,280,595 -

$ 153,603,562 $ 110,419,317 $ 43,184,245

Net Debt $43,184,245 divided by the average Equalized Valuation Basis per N.J.S.A 40A:2-2 as amended, $4,688,388,504, equals 0.921%. New Jersey statute 40A:2-6, as amended, limits the debt of a Municipality to 3.5% of the last three preceding year’s average equalized valuations of real estate, including improvements and the assessed valuation of Class II Railroad Property. The remaining borrowing power in dollars at December 31, 2018 is calculated as follows:

Borrowing Power Under N.J.S. 40A:2-6 as Amended

3 1/2% of Equalized Valuation Basis (Municipal) $ 164,093,598 Net Debt 43,184,245

Remaining Borrowing Power $ 120,909,353

Self-Liquidating Utility Calculation per N.J.S.A. 40A:2-46

Cash Receipts From Fees, Rents or Other Charges for the Year $ 10,821,498

Deductions: Operating and Maintenance Costs $ 8,235,000 Debt Service 1,549,311

Total Deductions 9,784,311

Excess/(Deficit) in Revenue $ 1,037,187

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 11. Municipal Debt (continued):

General Debt

A. Serial Bonds Payable

On August 10, 2010, the Township issued $8,297,000 of General Obligation Bonds. The General Obligation Bonds were issued at interest rates varying from 2.00% to 3.65% and mature on August 15, 2030.

On May 21, 2013, the Township issued $16,950,000 of General Obligation Bonds. The General Obligation Bonds were issued at interest rates varying from 2.00% to 4.00% and mature on January 1, 2033.

On April 14, 2015, the Township issued $3,950,000 of General Refunding Bonds. The General Refunding Bonds were issued at interest rates varying from 2.00% to 3.00% and mature on January 15, 2021.

On August 28, 2018, the Township issued $18,212,000 of General Obligation Bonds less a premium on bonds applied of $1,447,000 for a net issuance of $16,765,000. The General Obligation Bonds were issued at interest rates varying from 3.00% to 5.00% and mature on February 1, 2037.

Principal and interest due on the outstanding bonds is as follows:

Year Principal Interest Total

2019 $ 2,600,000 $ 1,378,391 $ 3,978,391 2020 2,645,000 1,344,050 3,989,050 2021 2,710,000 1,252,350 3,962,350 2022 2,075,000 1,167,600 3,242,600 2023 2,135,000 1,089,775 3,224,775 2024-2028 11,535,000 4,164,688 15,699,688 2029-2033 10,990,000 1,763,325 12,753,325 2034-2037 4,510,000 294,575 4,804,575

$ 39,200,000 $ 12,454,754 $ 51,654,754

B. Bond Anticipation Notes Payable – Short Term Debt

The Township had no bond anticipation notes outstanding in the General Capital Fund at December 31, 2018.

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 11. Municipal Debt (continued):

C. Bonds and Notes Authorized But Not Issued

As of December 31, 2018, the Township had $4,417,967 in various General Capital bonds and notes authorized but not issued.

Water & Sewer Utility Debt

A. Serial Bonds Payable

On August 15, 2010, the Township issued $3,492,000 of Utility Revenue Bonds. The Bonds were issued at interest rates varying from 2.00% to 3.65% and mature on August 15, 2030.

On May 21, 2013, the Township issued $2,450,000 of Utility Revenue Bonds. The Bonds were issued at interest rates varying from 3.00% to 4.00% and mature on January 15, 2033.

On April 14, 2015, the Township issued $620,000 of Utility Refunding Bonds. The Bonds were issued at interest rates varying from 2.00% to 3.00% and mature on January 15, 2021s.

On August 30, 2017, the Township issued $15,350,000 of Utility Revenue Bonds. The Bonds were issued at interest rates varying from 2.75% to 5.00% and mature on February 1, 2042.

On August 28, 2018, the Township issued $4,498,000 of Utility Revenue Bonds less a premium on bonds applied of $213,000 for a net issuance of $4,285,000. The Bonds were issued at interest rates varying from 3.00% to 5.00% and mature on February 1, 2043.

Principal and interest due on the outstanding bonds is as follows:

Year Principal Interest Total

2019 $ 895,000 $ 849,617 $ 1,744,617 2020 905,000 826,406 1,731,406 2021 935,000 788,906 1,723,906 2022 920,000 749,906 1,669,906 2023 940,000 709,681 1,649,681 2024-2028 5,110,000 2,905,563 8,015,563 2029-2033 5,425,000 1,822,038 7,247,038 2034-2038 4,705,000 1,063,575 5,768,575 2039-2043 4,170,000 282,806 4,452,806

$ 24,005,000 $ 9,998,498 $ 34,003,498

B. Bond Anticipation Notes Payable – Short Term Debt

The Township had no bond anticipation notes outstanding in the Utility Capital Fund at December 31, 2018.

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 11. Municipal Debt (continued):

C. Bonds and Notes Authorized But Not Issued

As of December 31, 2018 the Township had $32,275,595 in various Utility bonds and notes authorized but not issued.

Summary of Principal Debt

A summary of the changes in long-term and short term debt of the Township is as follows:

Balance Balance Balance December 31, Accrued/ Retired/ December 31, Due Within 2017 Increases Decreases 2018 One Year General Capital: General Bonds$ 25,315,000 $ 18,212,000 $ 4,327,000 $ 39,200,000 $ 2,600,000 Bond Anticipation Notes 11,565,000 - 11,565,000 - -

$ 36,880,000 $ 18,212,000 $ 15,892,000 $ 39,200,000 $ 2, 600,000

Utility Capital: Utility Bonds $ 20,485,000 $ 4,498,000 $ 978,000 $ 24,005,000 $ 895,000 Bond Anticipation Notes - - - - -

$ 20,485,000 $ 4,498,000 $ 978,000 $ 24,005,000 $ 895,000

Note 12. Deferred School Taxes

School taxes have been raised and the liability deferred by statutes. The balance of unpaid local school taxes levied, amount deferred and the amount reported as a liability (payable) at December 31, are as follows: Balance, December 31, Local Taxes 2018 2017

Total Balance of Local Tax $ 33,865,548 $ 33,232,608 Deferred Taxes 24,472,999 24,472,999

Local Tax Payable $ 9,392,549 $ 8,759,609

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 13. Housing Trust Fund, Developers Agreement with Toll Brother, Inc. for Low and Moderate-Income Housing Contributions and Mandatory Development Fees

The Trust Fund contributions along with interest earnings are dedicated to financing the Township’s Low and Moderate-Income Housing Program needed to meet the State of New Jersey’s council on Affordable Housing (COAH) requirements.

In the early 1990’s, the Township entered into an agreement with Toll Brothers, Inc., a private developer, for the collection of low and moderate-income housing fees for each certificate of occupancy issued at the Moorestown Hunt (252 units) and Laurel Creek (457 units) developments. The fees were collected into a trust fund called Housing Trust Fund I. The total fees from this agreement collected by Housing Trust Fund I was $5,420,300.76.

In June 1997, the Township adopted a Mandatory Development Fee Ordinance that established standards for the collection, maintenance and expenditure of development fees for developments approved after June 1997, for the purpose of providing low and moderate-income housing. This ordinance required residential development to pay one half (1/2) of one (1) percent and nonresidential development to pay one (1) percent of the equalized assessed value of the proposed development. These fees were setup in an account called Housing Trust Fund II.

In February 2005, the Township’s Mandatory Development Fee Ordinance was amended to require residential development to pay one (1) percent and nonresidential development to pay two (2) percent of the equalized assessed value of the proposed development.

In September 2009, the Township’s Mandatory Development Fee Ordinance was amended to require residential development to pay one and one-half (1 1/2) percent and nonresidential development to pay two and one-half (2 1/2) percent of the equalized assessed value of the proposed development.

In 2018, the Township collected $234,024 in Mandatory Development Fees and interest on deposits. The Total amount collected from June 1997, through December 2018 for Trust Fund, was $4,109,221.11.

As of December 31, 2018, the Township had $1,293,704 on deposit in the in the dedicated Low and Moderate Income Housing Trust Accounts. $247,089 was expended in 2018 for the housing program.

Note 14. Disclosure for Municipal Open Space Trust Fund

The Township’s Open Space Trust Fund Program was approved by referendum in 1998 and the fund subsequently established in 1999. The purpose of the fund is to establish a dedicated tax for the acquisition of lands, either in fee simple or a lesser interest, including, but not limited to an easement restricting development, for recreation and conservation, including the development or maintenance of such acquired lands, or for farmland acquisition and preservation, or for historic property preservation or acquisition, or for the payment of debt service for any of the aforesaid purposes.

The Program has subsequently been amended and extended through several referendums. Most recently, the voters have approved an annual tax rate of between one ($0.01) cent and six ($0.06) cents per $100 of assessed real property valuation. The tax rate is to be established annually by Resolution of the Township Council each year through year 2028.

The Township has generated $21,234,714 in tax revenue, interest income and other sources from 1999 through 2018. The Township has incurred $18,507,340 in program expenditures through December 2018. To date, the Township has preserved 340 acres for open space or farmland through this program.

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 14. Disclosure for Municipal Open Space Trust Fund (continued)

The Township also participates in the Burlington County Open Space Program, which provides up to 25% matching funds for approved projects and the State of New Jersey Green Acres Program, which provides up to 50% matching funds for approved projects.

Installment Purchase Agreement (IPA)

On May 8, 2008, the Township Council of the Township of Moorestown entered into an agreement with the Board of Chosen Freeholder of the County of Burlington to purchase Block 8700, lot 18 of Moorestown Township in the amount of $2,990,000 through an installment purchase agreement. Burlington County facilitated the transaction, will continue to act as the paying agent, and is responsible for 25% of the cost. The Township of Moorestown is the owner of the property and will reimburse Burlington County 75% of the cost.

Under the terms of the agreement, the County purchased 2 zero coupon notes totaling $1,166,668.10. The notes will mature and be payable to the seller in the amount of $2,990,000 on November 15, 2027. The agreement also calls for the County to make semi-annual interest payments to the seller of five (5) percent of the outstanding balance. The Township is responsible for reimbursing the County 75% of the interest expense. On May 8, 2008, the Township paid the County $917,670.88 for its share of the notes and interest expense. The Township made additional interest expense reimbursements to the county in the amount of $1,177,312.50 as of December 31, 2018. The balance of the Township’s share of future interest payments is $1,009,125. The Township will continue to reimburse the County $112,125 each year for its share of the interest expense until the notes mature in 2027.

Note 15. Accrued Sick, Vacation and Compensation Time

As discussed in Note 1 and in accordance with accounting principles prescribed by the State of New Jersey, the cash basis of accounting is followed for recording the Township’s liability related to unused vacation, sick pay and compensation time. The Township permits certain employees within limits to accumulate unused vacation, sick pay and compensation time, which may be taken as time off or paid at a later date at an agreed upon rate. In accordance with New Jersey accounting principles, this unused accumulated absences amount is not reported as a liability in the accompanying financial statements. It is estimated that accrued benefits for compensated absences are valued at $982,844 at December 31, 2018.

The Township has established a Trust Fund in accordance with NJSA 40A:4-39 to set aside funds for future payments of compensated absences. As of December 31, 2018, the Township has reserved in the Other Trust Fund $408,884 to fund compensated absences in accordance with NJSA 40A:4-39.

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 16. Joint Insurance Fund

The Township participates in the Professional Municipal Management Joint Insurance Fund (PMMJIF), the Municipal Excess Liability Joint Insurance Fund (MEL) and the New Jersey Environmental Joint Insurance Fund (EJIF), public entity risk pools. Coverage under this joint plan offers workers’ compensation and employers’ liability, liability other than motor vehicles, property damage other than motor vehicle and motor vehicles. Excess insurance coverages and limits for these types of insurance are provided by third party insurance carriers. The Township is assessed for the contributions for these funds and is responsible for any reserve deficiencies. No contingency or provision has been made in these financial statements for possible deficiencies. No deficiencies occurred at the end of 2018 for the joint insurance pool. The Township’s total 2018 premiums were $828,483. After applying dividends and other credits of $21,976, the township’s net cost of participation for 2018 was $806,507.

Limits of coverage, per occurrence are as follow:

Township Third Party Deductible JIF MEL Carrier

Workman’s Compensation & Statutory Employer’s Liability None $200,000 $800,000 $5,000,000 Property Damage, Automobile Ranging From Physical Damage & Contractors $25,000 to Equipment $1,000 $ 50,000 $200,000 $100,000,000 General Liability, Physical Damage, Automobile Liability and Police Excess to Professional Liability None $200,000 $800,000 $5,000,000 Excess to Crime and Dishonesty $1,000 $ 50,000 $950,000

Excess Public Officials Bonds Varies $2,000,000 * Public Officials Employee Varies $1,000,000 Practices Liability

*The deductible of the Excess Public Official Bond is the amount of any other surety bonds.

Note 17. Contingencies

Grantor Agencies

The Township receives financial assistance from the State of New Jersey and the U.S. government in the form of grants. Entitlement to the funds is generally conditional upon compliance with terms and conditions of the grant agreements and applicable regulations, including the expenditure of the funds for eligible purposes. Substantially all grants, entitlements and cost reimbursements are subject to financial and compliance audits by grantors. As a result of these audits, costs previously reimbursed could be disallowed and require repayment to the grantor agency. As of December 31, 2018 the Township estimates that no material liabilities will result from such audits.

Litigation

The Township is a defendant in several legal proceedings that are in various stages of litigation. It is believed that the outcome, or exposure to the Township, from such litigation is either unknown or potential losses, if any, would not be material to the financial statements.

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 17. Contingencies (continued)

Tax Appeals Losses arising from tax appeals are recognized at the time a decision is rendered by an administrative or judicial body; however, municipalities may establish reserves transferred from tax collections or by budget appropriation for future payments of tax appeal losses. The Township currently has a tax appeal reserve balance of $1,251,689 in addition to its available fund balance for this purpose. There are no significant pending tax appeals as of December 31, 2018.

The previous settlement of various tax appeals for the Moorestown Mall properties and anchor stores will result in future tax credits against the mall properties future tax obligation as follows: Year 2019 - $850,000; Year 2020 - $850,000; Year 2021 - $850,000; Year 2022 - $850,000; Year 2023 - $325,000. The Township has already factored in the use of additional surplus along with a modest tax increase to manage this obligation.

Note 18. Postemployment Benefits Other Than Pensions

A. Local Plan

General Information about the OPEB Plan

The financial statements of the Township are not prepared in accordance with Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. The following information is provided in accordance with the requirements of the Statement and has been implemented prospectively.

Moorestown Township provides post-employment medical and prescription drug coverage to eligible retired employees and their spouses and additionally dental, and vision benefits to eligible retired firefighters and their spouses. Any municipal employee hired after January 1, 2006, is ineligible for the above mentioned benefits. Firefighters hired after July 1, 2008, are ineligible for the above mentioned benefits. Public Works employees hired after January 1, 2007, are ineligible for the above mentioned benefits. Employees referred to as 911 employees hired after January 1, 2005, are ineligible for the above mentioned benefits. The Township Plan is a single employer defined benefit OPEB plan that is administered on a pay-as-you-go basis. The Township Plan does not issue a separate financial report.

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 18. Postemployment Benefits Other Than Pensions (continued):

Employees and Retirees Covered – At December 31, 2018, the following employees were covered by the Township plan:

As of As of Participant Data 12/31/2017 12/31/2018

Active Employees Total 70 70

Average Age 44.5 45.9 Average Service 16.4 17.8

Retired Employees Retirees 24 24 Spouses 17 14 Total 41 38

Average Age 57.3 58.5

Actuarial Assumptions and Other Inputs

This valuation has been conducted as of December 31, 2018 based on census, plan design and premium information provided by the Township. Census includes 38 retired participants (including spouses) and 70 active participants. The Measurement Date, for each fiscal year is as of the end of the prior year. Thus, the Total OPEB Liability for fiscal year ending December 31, 2018 of $9,309,087 is measured at December 31, 2017 as allowed under GASB 75.

The values are determined in accordance with GASB 75 including the Individual Entry Age Normal Cost method with the normal cost determined as a percentage of pay. Standard roll forward and backward techniques were used to adjust valuation dates to measurement dates. The following assumptions and other inputs applied to all periods in the measurement, unless otherwise specified:

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 18. Postemployment Benefits Other Than Pensions (continued):

Actuarial Cost Method Individual Entry Age Normal as a level percentage of pay

Discount Rate Based on Muni 20 year Aa as published by Fidelity Investments 3.31% as of December 31, 2018 (measured at December 31, 2017).

Inflation Rate 2.50%

Salary Increases 3.00%

Health Care Cost Trend 7.00% for 2016-2019 grading down to 3.5% (by 0.5% increments) in 2026.

Per Capita Claims Costs and Premiums Annual per capita cost for retiree and spouse at age 64 and 65. Age 64 $ 21,879 Age 65 N/A

Dental (all ages) N/A

Per capita costs (non Medicare eligible) are adjusted to reflect expected costs changers Age Based Utilitzation related to age. Age factors range from .60 for under age 30 to 3.00 for 75 and up.

Rates of Mortality RP 2014 White or Blue Collar Table projected to 2023 with scale MP18.

Rates of Turnover Ultimate termination rates vary by age

Rates of Retirement Annual rates varying by age

Rates of Disability None assumed

Spouse Assumption Marrital status is assumed not to change prior to or after retirment

Retiree Participation 100% of eligible retirees are assumed to elect to participate in the plan

Funding Policy Pay as you go

Investment Rate of Return Not applicable

Asset Valuation Method Not applicable

Discount Rate – The discount rate is the single rate that reflects (1) the long-term expected rate of return on the OPEB plan investments that are expected to be used to finance the payments of benefits, to the extent that the OPEB plan’s fiduciary net position is projected to be sufficient to make projected benefit payments and OPEB plan assets are expected to be invested using a strategy to achieve that return and (2) a yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of Aa, to the extent that the conditions for use of the long-term expected rate of return are not met. For the total OPEB liability calculation as of December 31, 2018, the discount rate utilized was 3.31%.

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 18. Postemployment Benefits Other Than Pensions (continued):

Changes in the Total OPEB Liability – The changes to the total OPEB Liability during the year ending December 31, 2018 were as follows:

Changes in the Total OPEB Liability Total OPEB Liability Balance, January 1, 2018 $ 9,204,950 Changes for the Year: Service Cost 133,363 Interest Cost 337,542 Difference between Actual and Expected 279,158 Benefits Paid (implicit) (645,926) Net Changes 104,137 Balance, December 31, 2018 $ 9,309,087

Sensitivity of the Total OPEB Liability to Changes in the Discount Rate

The following presents the total OPEB liability of the Township, as well as what the Township’s total OPEB liability would be, if it were calculated using a discount rate that is 1-percentage-point lower (2.31 percent) or 1-percentage pointer higher (4.31 percent) that the current discount rate:

December 31, 2018

At 1% At Discount At 1% Decrease (2.31%) Rate (3.31%) Increase (4.31%)

Total OPEB Liability $ 11,708,557.00 $ 9,309,087.00 $ 10,078,902.00

The following presents the total OPEB liability of the Township, as well as what the Township’s total OPEB liability would be, if it were calculated using a healthcare cost trend rate that is 1-percentage-point lower or 1-percentage pointer higher that the current healthcare cost trend rate:

December 31, 2018

Healthcare Cost 1% Decrease Trend Rate* 1% Increase

Total OP EB Liability $ 10,221,936.00 $ 9,309,087.00 $ 11,461,160.00

* See Healthcare Cost Trend Assumptions for details of rates.

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 18. Postemployment Benefits Other Than Pensions (continued):

OPEB Expense and Deferred Outflows and Deferred Inflows of Resources Related to OPEB

For the year ended December 31, 2018, the Township’s OPEB expense was estimated to be $472,741. At December 31, 2018, the Township reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred Outflows of Inflows of Resources Resources Differences between Expected and Actual Experience $ - -$

Changes of Assumptions or other inputs 257,684 (216,022)

Total $ 257,684 $ (216,022)

Amounts reported as deferred outflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ending December 31,

2019 $ 1,836 2020 1,836 2021 1,836 2022 1,836 Thereafter 34,324

$ 41,668

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 18. Postemployment Benefits Other Than Pensions (continued):

Other Supplementary Information

Schedule of Changes in the Township’s Total OPEB Liability and Related Ratios

Schedule of Changes in the Township's Total OPEB Liability and Related Ratios

Fiscal Year Ending December 31, 2018 2017 2016

Service Cost$ 133,363 $ 136,986 N/A Interest Cost 337,542 326,565 Changes of Assumptions 279,158 (255,299) Difference between Actual and Expected - - Benefits Paid (implicit) (645,926) (603,669)

Net Change in Total OPEB Liability 104,137 (395,418)

Total OPEB Liability (Beginning) 9,204,950 9,600,368

Total OPEB Liability (Ending)$ 9,309,087 $ 9,204,950

Total Covered Employee Payroll 3,052,664 3,052,663

Net OPEB Liability as a Percentage of Payroll 305% 302%

77

TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 18. Postemployment Benefits Other Than Pensions (continued):

Schedule of Funding Progress

Schedule of Funding Progress

December 31, Year Ended 2018 2017

Total OPEB Liability $ 9,309,087 $ 9,204,950 Fiduciary Net Position - -

Net OPEB Liability $ 9,309,087 $ 9,204,950

Funded Ratio 0% 0%

Covered Payroll 3,052,664 3,052,663

Net OPEB Liability as a Percentage of Covered Payroll 305% 302%

Schedule of Employer Contributions Contributions Actuarial Percentage Year Ended Determined Actual Contribution Covered Covered December 31, Contribution Contribution Deficiency Payroll Payroll

$ $ 2018 $ 470,905 $ 645,926 (175,021) 3,052,664 21%

2017 463,551 603,669 (140,118) 3,052,663 20%

B. State Plan

General Information about the OPEB Plan

The State Health Benefit Local Government Retired Employees Plan (the Plan) is a cost-sharing multiple- employer defined benefit other postemployment benefit (OPEB) plan with a special funding situation. It covers employees of local government employers that have adopted a resolution to participate in the Plan. For additional information about the Plan, please refer to the State of New Jersey (the State), Division of Pensions and Benefits’ (the Division) Comprehensive Annual Financial Report (CAFR), which can be found at https://www.state.nj.us/treasury/pensions/financial-reports.shtml.

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 18. Postemployment Benefits Other Than Pensions (continued):

The Plan provides medical and prescription drug to retirees and their covered dependents of the participating employers. Under the provisions of Chapter 88, P.L 1974 and Chapter 48, P.L. 1999, local government employers electing to provide postretirement medical coverage to their employees must file a resolution with the Division. Under Chapter 88, local employers elect to provide benefit coverage based on the eligibility rules and regulations promulgated by the State Health Benefits Commission. Chapter 48 allows local employers to establish their own age and service eligibility for employer paid health benefits coverage for retired employees. Under Chapter 48, the employer may assume the cost of postretirement medical coverage for employees and their dependents who: 1) retired on a disability pension; or 2) retired with 25 or more years of service credit in a State or locally administered retirement system and a period of service of up to 25 years with the employer at the time of retirement as established by the employer; or 3) retired and reached the age of 65 with 25 or more years of service credit in a State or locally administered retirement system and a period of service of up to 25 years with the employer at the time of retirement as established by the employer; or 4) retired and reached age 62 with at least 15 years of service with the employer. Further, the law provides that the employer paid obligations for retiree coverage may be determined by means of a collective negotiations agreement.

In accordance with Chapter 330, P.L. 1997, which is codified in N.J.S.A 52:14-17.32i, the State provides medical and prescription coverage to local police officers and firefighters, who retire with 25 years of service or on a disability from an employer who does not provide postretirement medical coverage. Local employers were required to file a resolution with the Division in order for their employees to qualify for State-paid retiree health benefits coverage under Chapter 330. The State also provides funding for retiree health benefits to survivors of local police officers and firefighters who die in the line of duty under Chapter 271, P.L.1989.

Pursuant to Chapter 78, P.L, 2011, future retirees eligible for postretirement medical coverage who have less than 20 years of creditable service on June 28, 2011 will be required to pay a percentage of the cost of their health care coverage in retirement provided they retire with 25 or more years of pension service credit. The percentage of the premium for which the retiree will be responsible will be determined based on the retiree’s annual retirement benefit and level of coverage.

Basis of Presentation

The schedule of employer and nonemployer allocations and the schedule of OPEB amounts by employer and nonemployer (collectively, the Schedules) present amounts that are considered elements of the financial statements of its participating employers or the State as a nonemployer contributing entity. Accordingly, they do not purport to be a complete presentation of the financial position or changes in financial position of the participating employers or the State. The accompanying Schedules were prepared in accordance with U.S. generally accepted accounting principles. Such preparation requires management of the Plan to make a number of estimates and assumptions relating to the reported amounts. Due to the inherent nature of these estimates, actual results could differ from those estimates.

Allocation Methodology

GASB Statement No. 75 requires participating employers in the Plan to recognize their proportionate share of the collective net OPEB liability, collective deferred outflows of resources, collective deferred inflows of resources, and collective OPEB expense. The special funding situation’s and nonspecial funding situation’s net OPEB liability, deferred outflows of resources, deferred inflows of resources, and OPEB expense are based on separately calculated total OPEB liabilities. For the special funding situation and the nonspecial funding situation, the total OPEB liabilities for the year ended June 30, 2018 were

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 18. Postemployment Benefits Other Than Pensions (continued):

$6,338,578,586 and $9,642,524,641, respectively. The nonspecial funding situation’s net OPEB liability, deferred outflows of resources, deferred inflows of resources, and OPEB expense are further allocated to employers based on the ratio of the plan members of an individual employer to the total members of the Plan’s nonspecial funding situation during the measurement period July 1, 2017 through June 30, 2018. Employer and nonemployer allocation percentages have been rounded for presentation purposes; therefore, amounts presented in the schedule of OPEB amounts by employer and nonemployer may result in immaterial differences.

Special Funding Situation

Under Chapter 330, P.L. 1997, the State shall pay the premium or periodic charges for the qualified local police and firefighter retirees and dependents equal to 80 percent of the premium or periodic charge for the category of coverage elected by the qualified retiree under the State managed care plan or a health maintenance organization participating in the program providing the lowest premium or periodic charge. The State also provides funding for retiree health benefits to survivors of local police officers and firefighters who die in the line of duty under Chapter 271, P.L.1989.

Therefore, these employers are considered to be in a special funding situation as defined by GASB Statement No. 75 and the State is treated as a nonemployer contributing entity. Since the local participating employers do not contribute under this legislation directly to the plan, there is no net OPEB liability, deferred outflows of resources or deferred inflows of resources to report in the financial statements of the local participating employers related to this legislation. However, the notes to the financial statements of the local participating employers must disclose the portion of the nonemployer contributing entities’ total proportionate share of the collective net OPEB liability that is associated with the local participating employer.

The participating employer allocations included in the supplemental schedule of employer special funding allocations and the supplemental schedule of special funding amounts by employer for each employer are provided as each employer is required to record in their financial statements, as an expense and corresponding revenue, their proportionate share of the OPEB expense allocated to the State of New Jersey under the special funding situation and include their proportionate share of the collective net OPEB liability in their respective notes to their financial statements. For this purpose, the proportionate share was developed based on eligible plan members subject to the special funding situation. This data takes into account active members from both participating and non-participating employer locations and retired members currently receiving OPEB benefits.

Additionally, the State’s proportionate share of the OPEB liability attributable to the Township is $9,184,311.00 as of December 31, 2018. The OPEB liability was measured as of June 30, 2018. The total OPEB liability used to calculate the OPEB liability was determined using update procedures to roll forward the total OPEB liability from an actuarial valuation as of July 1, 2017, to the measurement date of June 30, 2018. The State’s proportion of the OPEB liability associated with the Township was based on a projection of the Township’s long-term share of contributions to the OPEB plan relative to the projected contributions of all participating members, actuarially determined. The State’s proportion measured as of June 30, 2018 was 0.147804%, which was an increase of 0.007693% from its proportion measured as of June 30, 2017, which is the same proportion as the Township’s. At December 31, 2018, the Township’s and the State of New Jersey’s proportionate share of the OPEB liability were as follows:

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TOWNSHIP OF MOORESTOWN NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

Note 18. Postemployment Benefits Other Than Pensions (continued):

State of New Jersey's Proportionate Share of OPEB Liability Associated with the Township 9,184,311.00

At December 31, 2018, the State’s proportionate share of the OPEB expense, associated with the Township, calculated by the plan as of the June 30, 2018 measurement date was $278,020.00.

Note 19. Subsequent Events

Management has reviewed and evaluated all events and transactions that occurred between December 31, 2018 and August 5, 2019, the date the financial statements were available to be issued and has noted the following:

During April of 2019, the Township approved one new bond ordinance. Ordinance 4-2019 was approved to be used for the update of the Township’s American with Disabilities Act (ADA) transition plan for a total of $95,000 and authorized the issuance of debt in the amount of $90,250 in bonds or notes.

During June of 2019, The Township approved one new bond ordinance. Ordinance 13-2019 was approved to be used for the resurfacing of Garwood Road for a total of $200,000 and authorized the issuance of debt in the amount of $190,000 in bonds or notes.

During July of 2019, The Township approved one new bond ordinance. Ordinance 17-2019 was approved to be used for the resurfacing of Borton’s Landing Road Phase II for a total of $550,000 and authorized the issuance of debt in the amount of $285,000 in bonds or notes.

During August of 2019, The Township approved one new bond ordinance. Ordinance 21-2019 was approved to be used for the Lenola Town Center Streetscape for a total of $1,500,000 and authorized the issuance of debt in the amount of $500,000 in bonds or notes.

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82 SUPPLEMENTAL EXHIBITS

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84 CURRENT FUND

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86 EXHIBIT A-4 (Page 1 of 2) TOWNSHIP OF MOORESTOWN CURRENT FUND SCHEDULE OF CURRENT CASH AND INVESTMENTS - TREASURER FOR THE YEAR ENDED DECEMBER 31, 2018

CURRENT GRANTS

Balance December 31, 2017 $ 32,676,340 $ -

Increased by Receipts: Taxes Receivable $ 92,555,939 $ - Prepaid Taxes 1,042,614 - Revenue Accounts Receivable 6,500,229 - Due From State of New Jersey - Senior Citizen & Veteran Deductions 91,914 - Due to State of New Jersey: Fees & Permits 110,796 - Petty Cash 450 - Transfer from Trust - Other Funds 599 - Transfer from Payroll Fund 4,028 - Refunds to Appropriations 925,114 - Transfer from Grant Fund 109,580 - Reserve for State & Federal Grants: Unappropriated - 14,828 State Grants Receivable - 241,197

Total Receipts 101,341,263 256,025

Subtotal 134,017,603 256,025

87 EXHIBIT A-4 (Page 2 of 2) TOWNSHIP OF MOORESTOWN CURRENT FUND SCHEDULE OF CURRENT CASH AND INVESTMENTS - TREASURER FOR THE YEAR ENDED DECEMBER 31, 2018

CURRENT GRANTS

Decreased by Disbursements: 2018 Appropriations 23,163,858 - 2017 Reserved Appropriations 1,024,542 - Tax Overpayments 73,578 - County Taxes 16,010,286 - Special District Taxes 2,851,411 - Local District School Tax 67,098,167 - Municipal Open Space Tax 407,452 - Due to State of New Jersey 109,178 - Reserve for Tax Appeals 343,221 - Petty Cash 450 - Transfer to Trust - Other Funds 12,443 - Transfer to Trust - Animal Control 439 Transfer to Trust - Trust Assessment 138 Refunds of Revenue 3,998 - Accounts Payable 102,493 - Transfer to Current Fund - 109,580 Reserve for Appropriated Grants - 146,445

Total Disbursements 111,201,654 256,025

Balance December 31, 2018 $ 22,815,949 $ -

EXHIBIT A-5 SCHEDULE OF CHANGE FUNDS FOR THE YEAR ENDED DECEMBER 31, 2018

Tax Collector $ 200 Township Clerk 50 Municipal Court 200 Recreation Director 75 Police 50 Construction Department 75

Balance December 31, 2018 $ 650

88 EXHIBIT A-6 TOWNSHIP OF MOORESTOWN CURRENT FUND SCHEDULE OF TAXES RECEIVABLE AND ANALYSIS OF PROPERTY TAX LEVY FOR THE YEAR ENDED DECEMBER 31, 2018

BALANCE DUE FROM TRANSFER TO BALANCE DECEMBER 31, 2018 ADDED COLLECTED STATE OF OVERPAYMENTS TAX DECEMBER 31, YEAR 2017 LEVY TAXES 2017 2018 NEW JERSEY APPLIED/CREATED TITLE LIENS CANCELED 2018

2016$ 1,772 $ - $ - $ - $ - $ - $ - $ - $ 2 $ 1,770 2017 792,155 - - - 790,077 (1,167) 666 2,579

Total 793,927 - - - 790,077 (1,167) - - 668 4,349 2018 - 103,033,240 1,175,821 11,491,520 91,766,112 111,867 (202,004) 51,508 267,287 722,771

Total$ 793,927 $ 103,033,240 $ 1,175,821 $ 11,491,520 $ 92,556,189 $ 110,700 $ (202,004) $ 51,508 $ 267,955 $ 727,120

ANALYSIS OF 2018 PROPERTY TAX LEVY

General Purpose Tax $ 100,181,829

89 Fire District Tax 2,851,411 Added & Omitted Taxes (54:4-6 et seq) 1,175,821

Total $ 104,209,061

TAX LEVY: District School Tax $ 67,731,107 County Taxes$ 14,650,058 County Open Space Taxes 1,061,625 Due County for Added & Omitted Taxes 182,979 15,894,662 Special District Taxes 2,851,411 Municipal Open Space 402,857 Municipal Open Space - Added/Omitted Taxes 4,595 Municipal Library 1,534,908 Local Tax for Municipal Purposes 14,758,840 Add: Additional Taxes Levied 1,030,681 15,789,521

Total $ 104,209,061 EXHIBIT A-7 TOWNSHIP OF MOORESTOWN CURRENT FUND SCHEDULE OF TAX TITLE LIENS FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017$ 1,166,115

Increased by: Other Municipal Liens $ 2,520 Transfers From 2018 Taxes Receivable 51,508 54,028

Balance December 31, 2018 $ 1,220,143

EXHIBIT A-8 SCHEDULE OF PROPERTY ACQUIRED FOR TAXES FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2018 & 2017 $ 101,300

90 EXHIBIT A-9 (Page 1 of 2) TOWNSHIP OF MOORESTOWN CURRENT FUND SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE FOR THE YEAR ENDED DECEMBER 31, 2018

BALANCE BALANCE DECEMBER 31, ACCRUED IN DECEMBER 31, 2017 2018 COLLECTED 2018 Miscellaneous Revenue Anticipated: Licenses - Other$ - $ 1,517 $ 1,517 $ - Licenses - Alcohol Beverages - 16,500 16,500 - Fees & Permits - Other - 136,123 136,123 - Fines & Cost Municipal Court 18,186 181,350 186,196 13,340 Interest & Costs on Taxes - 251,797 251,797 - Parking Meters - 53,148 53,148 - Interest Earned on Investments - 346,429 346,429 - General Capital Surplus - 250,000 250,000 - Reserve for Payment of Bonds - 130,000 130,000 - Recreation Fees - 294,285 294,285 - Police Accident Report Fees - 4,997 4,997 - Special Police Service Charges - 165,648 165,648 - Street Opening Permits - 2,075 2,075 - Cable Television Fees - 92,094 92,094 - Consolidate Municipal Property Tax Relief Aid - 44,470 44,470 - Energy Receipts Tax - 1,749,493 1,749,493 - Energy Receipts Tax: Public Service Electric & Gas - 248,525 248,525 - BOE Reimbursement - Resource Officer - 143,663 143,663 - Tower Rents - 87,627 87,627 - Fees & Permits - Construction Code Official - 1,272,079 1,272,079 - Utility Fund Reimbursement - 350,000 350,000 - Shared Service Reimbursement - 40,050 40,050 - Library Services Reimbursement - 165,000 165,000 - - Total Anticipated Revenues 18,186 6,026,870 6,031,716 13,340

Nonbudget Revenues: Miscellaneous Advertising Fee - 2,974 2,974 - FEMA Reimbursement - 3,191 3,191 - False Alarm Fees - 23,050 23,050 - Peddler/Solicitor Permit - 3,215 3,215 - Developer Application Fees - 3,559 3,559 - Efficiency Award/JIF Safety Award - 2,500 2,500 - Sale of Assets - 321,447 321,447 -

91 EXHIBIT A-9 (Page 2 of 2) TOWNSHIP OF MOORESTOWN CURRENT FUND SCHEDULE OF REVENUE ACCOUNTS RECEIVABLE FOR THE YEAR ENDED DECEMBER 31, 2018

BALANCE BALANCE DECEMBER 31, ACCRUED IN DECEMBER 31, 2017 2018 COLLECTED 2018

Photo Copies - 41 41 Tax Premium on Foreclosures - 14,600 14,600 - Payment in Lieu of Taxes - PILOT - 26,981 26,981 - RAPID Program - 1,200 1,200 - Streer Maps - 820 820 - Cancel Prior Years Outstanding Checks - 951 951 - Scrap Metal & Waste Oil - 7,094 7,094 - DMV Inspection Fees - 332 332 - Towing Fees - 960 960 - State of NJ 2% Administration Fee & Homestead Rebate - 3,293 3,293 - Miscellaneous - 3,304 3,304 - Refund Prior Year Expenditures - 2,727 2,727 -

Total Nonbudget Revenue - 468,513 468,513 -

Total Revenue Accounts Receivable $ 18,186 $ 6,495,383 $ 6,500,229 $ 13,340

Cash Receipts $ 6,500,229

Total $ 6,500,229

92 EXHIBIT A-10 (Page 1 of 3) TOWNSHIP OF MOORESTOWN CURRENT FUND SCHEDULE OF 2017 APPROPRIATION RESERVES FOR THE YEAR ENDED DECEMBER 31, 2018

2017 2017 BALANCE PAID ENCUMBRANCES RESERVE AFTER OR BALANCE PAYABLE BALANCE TRANSFERS CHARGED LAPSED General Government: General Administration: Salaries and Wages$ - $ 11,035 $ 11,035 $ 1,884 $ 9,151 Other Expenses 11,806 5,975 17,781 10,058 7,723 Human Resources: Other Expenses - 45,003 45,003 - 45,003 Mayor & Council: Other Expenses 272 2,279 2,551 272 2,279 Municipal Clerk: Salaries and Wages - 593 593 - 593 Other Expenses 1,160 1,638 2,798 1,160 1,638 Financial Administration (Treasury): Office of Controller: Salaries and Wages - 4 4 - 4 Other Expenses 2,386 11,609 13,995 7,286 6,709 Auditing Services: Other Expenses - 400 400 - 400 Computer Data Processing: Salaries and Wages - 634 634 - 634 Other Expenses 12,199 35,662 37,861 12,199 25,662 Revenue Administration (Tax Collection): Salaries and Wages - 2,162 2,162 688 1,474 Other Expenses - 3,275 3,275 - 3,275 Tax Assessment: Salaries and Wages - 1,300 1,300 1,297 3 Other Expenses 5,396 12,660 18,056 8,025 10,031 Legal Services (Legal Department): Other Expenses - 30,995 30,995 17,393 13,602 Engineering Services: Other Expenses 37,370 4,971 82,341 70,097 12,244 Land Use Administration: Planning Board: Salaries and Wages - 7,543 7,543 - 7,543 Other Expenses 1,124 12,119 13,243 1,779 11,464 Zoning Board of Adjustments: Salaries and Wages - 2,342 2,342 795 1,547 Other Expenses - 5,598 5,598 3,118 2,480 Code Enforcement & Administrative: Building & Insprctions Salaries and Wages 11,123 11,123 1,302 9,821 Other Expenses 84,943 42,038 126,981 85,180 41,801 Insurance: Unemployment Compensation - 2,790 2,790 501 2,289 Worker's Compensation - 190 190 - 190 Employee Group Insurance 2,112 134,350 136,462 2,734 133,728 Other Insurance Premiums - 601 601 - 601 Health Benefit Waiver - 5,480 5,480 - 5,480

93 EXHIBIT A-10 (Page 2 of 3) TOWNSHIP OF MOORESTOWN CURRENT FUND SCHEDULE OF 2017 APPROPRIATION RESERVES FOR THE YEAR ENDED DECEMBER 31, 2018

2017 2017 BALANCE PAID ENCUMBRANCES RESERVE AFTER OR BALANCE PAYABLE BALANCE TRANSFERS CHARGED LAPSED Public Safety Functions: Police: Salaries and Wages - 206,523 206,523 68,202 138,321 Other Expenses 45,363 593 45,956 45,719 237 Public Works Functions: Department of Public Works: Office of the Director: Salaries and Wages - 6,084 6,084 1,151 4,933 Other Expenses - 1,616 1,616 - 1,616 Road Repairs & Maintenance: Salaries and Wages - 30,148 30,148 10,356 19,792 Other Expenses 82,578 46,322 128,900 97,087 31,813 Building & Grounds: Other Expenses 72,490 28,822 101,312 70,833 30,479 Shade Tree: Salaries and Wages - 2,047 2,047 1,067 980 Other Expenses 48,038 8,744 56,782 46,808 9,974 Shade Tree Advisory Committee: Other Expenses - 135 135 - 135 Maintenance of Motor Vehicles: Salaries and Wages - 4,273 4,273 1,742 2,531 Other Expenses 23,967 17,604 41,571 31,026 10,545 Division of Sanitation: Other Expenses 213,227 10,814 224,041 222,276 1,765 Health & Human Services: Environmental Committee: Other Expenses - 1,808 1,808 65 1,743 Animal Control: Contractual Service - 148 148 148 - Contributions to Social Services Agencies: Other Expenses 1,090 - 1,090 280 810 Parks & Recreation: Recreation Services & Programs: Salaries and Wages - 21,743 21,743 634 21,109 Other Expenses 29,000 6,937 35,937 28,394 7,543 Parks & Playgrounds: Salaries and Wages - 7,071 7,071 3,639 3,432 Other Expenses 40,069 14,342 54,411 36,164 18,247

94 EXHIBIT A-10 (Page 3 of 3) TOWNSHIP OF MOORESTOWN CURRENT FUND SCHEDULE OF 2017 APPROPRIATION RESERVES FOR THE YEAR ENDED DECEMBER 31, 2018

2017 2017 BALANCE PAID ENCUMBRANCES RESERVE AFTER OR BALANCE PAYABLE BALANCE TRANSFERS CHARGED LAPSED Utility Expenses & Bulk Purchases: Electricity 26,675 75,382 62,057 22,443 39,614 Street Lighting Other Expenses 25,000 5,273 30,273 25,660 4,613 Telephone Expenses 1,536 5,842 7,378 816 6,562 Water - 7,077 7,077 78 6,999 Gas (Natural/Propane) 2,400 13,916 16,316 6,122 10,194 Telecommunications 290 1,143 1,433 285 1,148 Gasoline 7,972 40,792 33,764 13,989 19,775 Solid Waste Disposal: Other Expenses - 69,863 69,863 49,583 20,280 Municipal Court: Salaries and Wages - 7,806 7,806 - 7,806 Other Expenses 445 7,463 7,908 450 7,458 Public Defender: Other Expenses - 730 730 - 730 Unclassified Sick Sell Back - 38,000 38,000 36,903 1,097 Condo Services - 125,000 150,000 110,412 39,588 Statutory Expenditures: Social Security - 38,266 38,266 2,269 35,997 Defined Contribution Plan - 2,647 2,647 - 2,647

Total$ 778,908 $ 1,249,343 $ 2,028,251 $ 1,160,369 $ 867,882

Cash Disbursed $ 1,024,542 Accounts Payable 135,827

Total $ 1,160,369

95 EXHIBIT A-11 TOWNSHIP OF MOORESTOWN CURRENT FUND SCHEDULE OF LOCAL DISTRICT SCHOOL TAXES PAYABLE FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017: School Tax Payable$ 8,759,609 School Tax Deferred 24,472,999 $ 33,232,608

Increased by: Fiscal Year Levy - 2018 to 2019 67,731,107

Subtotal 100,963,715

Decreased by: Cash Disbursements 67,098,167

Balance December 31, 2018: School Tax Payable 9,392,549 School Tax Deferred 24,472,999

Total $ 33,865,548

Local District School Tax Liability: Cash Payments $ 67,098,167 School Tax Payable December 31, 2018 9,392,549

Total 76,490,716

School Tax Payable December 31, 2017 8,759,609

Amount Charged to 2018 Operations $ 67,731,107

96 EXHIBIT A-12 TOWNSHIP OF MOORESTOWN FEDERAL AND STATE GRANT FUND SCHEDULE OF STATE AND FEDERAL GRANTS RECEIVABLE FOR THE YEAR ENDED DECEMBER 31, 2018

BALANCE BALANCE DECEMBER 31, DECEMBER 31, 2017 REVENUE RECEIVED CANCELLED 2018

State Grant Awards: Safe & Secure Communities$ - $ 60,000 $ 60,000 $ - $ - Clean Communities Grant - 45,265 45,265 - - Recycling Tonnage Grant - 40,348 40,348 - - Drunk Drivinf Enforcement Fund - 7,765 7,765 - - Body Armor Replacement - 3,151 3,151 - - Federal Grant Awards: Bulletproof Vest Partnership Grant - 1,532 1,532 - - EMA Assistance Grant - 9,400 9,400 - - Local Grant Awards: County Parks Grant 125,000 - 125,000 - -

Total$ 125,000 $ 167,461 $ 292,461 $ - $ -

Original Budget$ 167,460

Total$ 167,460

Cash$ 241,197 Transferred from Unappropriated Reserves 51,264

Total$ 292,461

97 EXHIBIT A-13 TOWNSHIP OF MOORESTOWN FEDERAL AND STATE GRANT FUND SCHEDULE OF RESERVES FOR STATE AND FEDERAL GRANTS AND MATCHING FUNDS - APPROPRIATED FOR THE YEAR ENDED DECEMBER 31, 2018

BALANCE BALANCE DECEMBER 31, ENCUMBRANCES DECEMBER 31, 2017 BUDGET EXPENDED RECLASSIFIED CANCELLED 2018 State Grants: Drunk Driving Enforcement Fund$ 15,219 7,765$ 1,421$ $ - $ - $ 21,563 Recycling Tonnage 129,366 40,348 21,073 400 - 149,041 Alcohol Education & Enforcement Grant 682 - - - - 682 Safe & Secure Communities - 60,000 60,000 - - - Clean Communities Grant - 45,265 57,062 11,797 - - Body Armor 3,147 3,151 6,298 - - -

Total State Grants 148,414 156,529 145,854 12,197 - 171,286

Federal Grants: Town Center Parking Plan 2,044 - - - - 2,044 Bulletproof Vests Partnership Grant 3,219 1,531 3,219 - - 1,531 EMA Assistance Grant - 9,400 9,400 - - -

Total Federal Grants 5,263 10,931 12,619 - - 3,575

Township Matching Funds/Local Grants: Municipal Drug Alliance Grant 2,293 - - - - 2,293 Tree Replacement 5,090 - - - - 5,090 Defibrillator Grant 611 - - - - 611 Recreation Trust Grant 13,100 - - - - 13,100

Total Matching Funds 21,094 - - - - 21,094

Total $ 174,771 167,460$ 158,473$ $ 12,197 -$ $ 195,955

Original Budget 167,460$ -$ Cash Disbursed - 146,445 Encumbrances Payable - 12,028

Total 167,460$ 158,473$

98 EXHIBIT A-14 TOWNSHIP OF MOORESTOWN FEDERAL AND STATE GRANT FUND SCHEDULE OF RESERVES FOR STATE GRANTS - UNAPPROPRIATED FOR THE YEAR ENDED DECEMBER 31, 2018

TRANSFERRED BALANCE TO 2018 BALANCE DECEMBER 31, GRANT DECEMBER 31, GRANT 2017 APPROPRIATED RECEIVED 2018

Federal Grants: EMA Grant $ - $ - $ 10,000 $ 10,000 Bulletproof Vest Partnership - - 2,328 2,328 State Grants: Recycling Tonnage Grant 40,348 40,348 - - Drunk Driving Enforcement Fund 7,765 7,765 2,500 2,500 Body Armor Replacement Fund 3,151 3,151 - -

Total Grants $ 51,264 $ 51,264 $ 14,828 $ 14,828

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100 TRUST FUND

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102 EXHIBIT B-4 TOWNSHIP OF MOORESTOWN TRUST ASSESSMENT FUND SCHEDULE OF FUND BALANCE - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2018 & 2017 $ 11,065

103 EXHIBIT B-5 (Page 1 of 2) TOWNSHIP OF MOORESTOWN TRUST FUND SCHEDULE OF CASH AND INVESTMENTS - TREASURER FOR THE YEAR ENDED DECEMBER 31, 2018

TRUST ASSESSMENT ANIMAL CONTROL TRUST OTHER OPEN SPACE

Balance December 31, 2017 11,074$ 29,524$ $ 5,697,555 $ 2,734,945

Increased by Receipts: Due Township Clerk -$ 12,722$ -$ -$ Due to State - 1,309 - - Due Interfunds: Current Fund 138 439 12,443 - Reserve for: Developers Escrow - - 104,153 - Performance Escrow - - 40,557 - Special Law Enforcement Fund - - 4,656 - Tax Title Lien Redemption - - 984,403 - Unemployment Compensation - - 13,709 - Uniform Construction Code - Third Party Inspection Fees - - 2,618 - Health Benefit Premiums & Self-Insurance - - 3,635,711 - Tax Sale Premium - - 509,094 - Recreation Programs - - 177,387 - Low & Moderate Housing Trust Fund - - 234,024 - Open Space Trust - - - 569,306 Library Insurance - - 209,483 - Renaissance Fund - - 76 - Tree Remembrance Fund - - 1,435 - Recreation Donation Trust - - 31,501 - POAA - - 454 - Public Defender - - 9,423 - Snow Removal - - 135,392 - Accumulated Leave Fund - - 203,259 -

Total Increases 138 14,470 6,309,778 569,306

Total Increases & Balances 11,212 43,994 12,007,333 3,304,251

104 EXHIBIT B-5 (Page 2 of 2) TOWNSHIP OF MOORESTOWN TRUST FUND SCHEDULE OF CASH AND INVESTMENTS - TREASURER FOR THE YEAR ENDED DECEMBER 31, 2018

TRUST ASSESSMENT ANIMAL CONTROL TRUST OTHER OPEN SPACE

Decreased by Disbursements: Dog Fund Expenditures - 6,638 - - Due to State - 1,309 - - Due Current Fund: Interfunds Liquidated - - 599 - Reserve for: Developers Escrow - - 134,484 - Performance Escrow - - 242,108 - Open Space Trust - - - 576,878 Recreation Donation Trust - - 58,100 - Tax Title Lien Redemption - - 984,096 - Uniform Construction Code - Third Party Inspection Fees - - 321,447 - Health Benefit Premiums & Self-Insurance - - 3,636,585 - Recreation Programs - - 141,744 - Tree Rememberance Fund - - 350 - Renaissance Fund - - 405 - Library Insurance - - 209,483 - Accumulated Leave - - 158,449 - Tax Sale Premium - - 437,100 - Snow Removal Trust - - 119,655 - Low & Moderate Housing Trust - - 247,089 -

Total Disbursements - 7,947 6,691,694 576,878

Balance December 31, 2018 11,212$ $ 36,047 $ 5,315,639 $ 2,727,373

105 EXHIBIT B-6 TOWNSHIP OF MOORESTOWN TRUST ASSESSMENT FUND ANALYSIS OF ASSESSMENT CASH AND INVESTMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

BALANCE ASSESSMENT BALANCE DECEMBER 31, RECEIPTS BOND/NOTE DECEMBER 31, 2017 TRANSFER MISCELLANEOUS PAYMENTS 2018

Fund Balance$ 11,065 -$ $ - $ - $ 11,065 Due From Current Fund 9 - 138 - 147

Total $ 11,074 -$ $ 138 $ - $ 11,212

106 EXHIBIT B-7 TOWNSHIP OF MOORESTOWN TAX ASSESSMENT FUND SCHEDULE OF ASSESSMENT LIENS FOR THE YEAR ENDED DECEMBER 31, 2018

BALANCE BALANCE ORDINANCE DECEMBER 31, PLEDGED TO NUMBER IMPROVEMENT DESCRIPTION 2018 RESERVE

262 Lenola Road - Curbs & Gutters $ 287 $ 287

EXHIBIT B-8 TRUST FUND - ANIMAL CONTROL FUND SCHEDULE OF RESERVE FOR ANIMAL CONTROL FUND EXPENDITURES FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017 $ 26,215

Increased by: Dog License Fees $ 11,481 Miscellaneous Other Fees 1,241 12,722

Subtotal 38,937

Decreased by: Due Current Fund 5,943 Expenditures (R.S.4:19-15.11) 6,638 12,581

Balance December 31, 2018 $ 26,356

LICENSE FEES COLLECTED

2017 $ 12,314 2016 14,042

Total $ 26,356

107 EXHIBIT B-9 TOWNSHIP OF MOORESTOWN ANIMAL CONTROL FUND SCHEDULE OF DUE FROM TOWNSHIP CLERK FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2018 & 2017$ (29)

EXHIBIT B-10 TRUST FUND - OTHER SCHEDULE OF DUE FROM/(TO) CURRENT FUND FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017$ (3,375)

Increased by: Interfund Liquidation $ 599 UCC Fees Due From Current - 599

Subtotal (2,776)

Decreased by: Interfund Created 12,443 UCC Fees Received From Current - 12,443

Balance December 31, 2018 $ (15,219)

EXHIBIT B-11 TRUST ASSESSMENT FUND SCHEDULE OF RESERVE FOR ASSESSMENTS AND LIENS FOR THE YEAR ENDED DECEMBER 31, 2018

ORDINANCE NUMBER IMPROVEMENT DESCRIPTION AMOUNT Assessment Liens: 262 Lenola Road $ 287

Total $ 287

108 EXHIBIT B-12 TOWNSHIP OF MOORESTOWN ANIMAL CONTROL FUND SCHEDULE OF DUE TO STATE OF NEW JERSEY FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017$ 1

Increased by: Dog License Fees Collected: State Share 13,809

Subtotal 13,810

Decreased by: Payments 13,809

Balance December 31, 2018$ 1

EXHIBIT B-13

SCHEDULE OF DUE FROM/(TO) CURRENT FUND FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017$ (3,279)

Decreased by: Excess Funds in Dog License Reserve$ 5,943 Interest Earnings 439 6,382

Balance December 31, 2018$ (9,661)

109 EXHIBIT B-14 TOWNSHIP OF MOORESTOWN TRUST - MUNICIPAL OPEN SPACE FUND SCHEDULE OF RESERVE FOR FUTURE USE FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017$ 2,734,945

Increased by: Interest 28,254$ Open Space Matching Funds 132,600 Refunds 1,000 Taxes 407,452 569,306

Subtotal 3,304,251

Decreased by: Open Space Expenditures 576,878 576,878

Balance December 31, 2018 $ 2,727,373

110 EXHIBIT B-15 TOWNSHIP OF MOORESTOWN PAYROLL FUND SCHEDULE OF PAYROLL FUND CASH FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017$ 17,004

Increased by Receipts: Net Payroll & Payroll Deductions$ 16,776,535 Due Current Fund - Interest Earnings 4,381 16,780,916

Subtotal 16,797,920

Decreased by Disbursements: Net Payroll & Payroll Deductions 16,796,879 Due Current Fund - Interest Earnings 4,028 16,800,907

Balance December 31, 2018 $ (2,987)

111 EXHIBIT B-16 TOWNSHIP OF MOORESTOWN TRUST FUND - OTHER STATEMENT OF MISCELLANEOUS TRUST RESERVES FOR THE YEAR ENDED DECEMBER 31, 2018

BALANCE INCREASED BY DECREASED BY BALANCE DECEMBER 31, INTEREST DECEMBER 31, 2017 RECEIPTS EARNINGS OTHER DISBURSEMENTS OTHER 2018

Developers Escrow $ 463,148 99,102$ 5,051$ -$ $ 134,484 -$ $ 432,817 Performance Escrow 1,915,766 32,775 7,782 - 242,108 - 1,714,215 Special Law Enforcement 19,355 4,656 - - - - 24,011 Recreation Improvements/Affinity 66 - - - - - 66 Recreation Programs 192,152 174,767 2,620 - 141,744 - 227,795 CASA 100 - - - - - 100 Library Insurance - 209,483 - - 209,483 - - Bikeway 7,920 - - - - - 7,920 POAA 2,249 454 - - - - 2,703

112 Sustainable New Jersey 125 - - - - - 125 Sidewalk Repairs 6,370 - - - - - 6,370 Public Defender 11,482 9,423 - - - - 20,905 Gym Repairs 2,688 - - - - - 2,688 Teleport Aesthetic Fee 76,200 - - - - - 76,200 Renaissance Fund 6,965 76 - - 405 - 6,636 South Lenola Road 9,765 - - - - - 9,765 Strawbridge Lake 7,827 - - - - - 7,827 UCC Trust 318,829 - 2,618 - 321,447 - - Unemployment Compensation 104,351 13,709 - - - - 118,060 Tax Title Lien Redemption 9,718 984,403 - - 984,096 - 10,025 Health Benefits & Self-Insurance 5,901 3,635,711 - - 3,636,585 - 5,027 Premium Received on Tax Sale 690,404 509,094 - - 437,100 - 762,398 Low & Moderate Housing Trust 1,306,769 222,313 11,711 - 247,089 - 1,293,704 Tree Remembrance Fund 3,597 1,387 48 - 350 - 4,682 Snow Removal 123,269 135,000 392 - 119,655 - 139,006 Recreation Donation Trust 45,090 31,086 415 - 58,100 - 18,491 Accumulated Leave Fund 364,074 200,000 3,259 - 158,449 - 408,884

Total $ 5,694,180 6,263,439$ 33,896$ -$ $ 6,691,095 -$ $ 5,300,420 GENERAL CAPITAL FUND

113 THIS PAGE INTENTIONALLY LEFT BLANK.

114 EXHIBIT C-1 TOWNSHIP OF MOORESTOWN GENERAL CAPITAL FUND SCHEDULE OF FUND BALANCE - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017 $ 448,251

Increased by: $2,630 Premium on Sale of Notes 3,262 5,892 Cancellation of Balance

Subtotal 454,143

Decreased by: Transferred to 2018 Budget 250,000

Balance December 31, 2018 $ 204,143

EXHIBIT C-2 SCHEDULE OF CASH AND INVESTMENTS - TREASURER FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017 $ 2,041,709

Increased by: Premiums on Note Sale$ 2,630 Bond Proceeds 18,212,000 Grant Receipts 477,750 Current Fund Budget Appropriation: Capital Improvement Fund 350,000 Reserve for the Payment of Debt Service (Turf Field Reimbursements) 17,717 Due Current Fund 10 19,060,107

Subtotal 21,101,816

Decreased by: Improvement Authorizations 3,826,950 Note Redemption 11,565,000 Transfer Fund Balance to Current Fund Budget 250,000 Current Fund Budget Revenue - Reserve to Pay Debt 130,000 15,771,950

Balance December 31, 2018 $ 5,329,866

115 EXHIBIT C-2a

TOWNSHIP OF MOORESTOWN GENERAL CAPITAL FUND ANALYSIS OF CASH AND INVESTMENTS AT DECEMBER 31, 2018

BALANCE BALANCE (OVERDRAFT) BANS/ DISBURSEMENTS (OVERDRAFT) DECEMBER 31, BONDS RECEIPTS IMPROVEMENT TRANSFERS DECEMBER 31, 2017 ISSUED MISCELLANEOUS AUTHORIZATIONS MISCELLANEOUS FROM TO 2018

Fund Balance $ 448,251 $ - $ 2,630 $ - $ 250,000 $ - $ 3,262 $ 204,143 Capital Improvement Fund 157,621 - 350,000 - - 373,250 - 134,371 Due Current Fund (7) - 10 - - - - 3 Reserve for Payment of Debt Service 333,150 - 17,717 - 130,000 - 212,855 433,722 Reserve for Turf Field Replacement 71,328 - - - - 71,328 - - Reserve for Town Hall 1 - - - - 1 - -

ORDINANCE IMPROVEMENT NUMBER AUTHORIZATIONS

1897 Aesthetic Impact Fees 3,300 ------3,300 21-2003 Snyder Place 3,390 ------3,390 4-2005 Reconstruction of Pearl Street 6,750 ------6,750 7-2009/2-2010/35-2011 Hall & Library Renovation (2,467) ------(2,467) 37-2008 Acquisition of 1 High Street 31,724 ------31,724 33-2011 Preliminary Expenses - Park Lighting 12 ------12 6-2012 Reconstruction of W. Spruce & Magnolia 63,860 ------63,860 25-2012 Wesley Bishop North Fields 60,134 ------60,134 17-2013 2013 Roads Resurfacing Program 102,084 1,496,000 - 2,848 1,496,000 - - 99,236 18-2013 Purchase of DPW Vehicles 34,675 427,500 - 26,314 427,500 - - 8,361

116 19-2013 Memorial & Wesley Bishop 48,842 413,000 - 3,318 413,000 - - 45,524

23-2013 Purchase of Police Vehicles 1,429 137,750 - 1,429 137,750 - - - 5-2014 2015 Roads Resurfacing Program 30,603 340,000 - 64,702 300,000 - - 5,901 6-2014 Purchase Police Vehicles & Equipment 26,254 313,500 - 26,254 313,500 - - - 7-2014 Various Drainage Improvements 35,453 267,450 - 11,472 267,450 - - 23,981 8-2014 Prelim Exp - Wesley Bishop & Jeff Young 127,563 142,500 - 3,595 142,500 - - 123,968 9-2014 Roof Replacement of DPQ Building 3,250 ------3,250 3-2015/7-2016 Reconstruction of Municipal Lot 22,322 1,092,500 - 22,322 1,092,500 - - - 12-2015 Pleasant Valley Mill & Paving (26,596) 330,000 - 76,062 330,000 - - (102,658) 16-2015/8-2016/8-2017 Wesley Bishop Hockey Rink 71,147 285,000 - 59,300 285,000 - - 11,847 18-2015 2016 Road Resurfacing 183,557 1,550,000 - 428,395 1,280,000 - - 25,162 19-2015 2016 Road Reconstruction 284,033 308,750 - 1,250 300,000 - - 291,533 21-2015 Purchase Police Vehicles 16,726 194,750 - 14,243 194,750 - - 2,483 22-2015 Purchase DPW Vehicles 103,378 422,750 - 2,568 422,750 - - 100,810 23-2015 Installation Lighting Controls Fields 2,488 66,500 - 2,488 66,500 - - - 2-2016 Library Demolition Project - 152,000 - - 152,000 - - - 13-2016 Construction of Dog Park (60,540) 180,500 90,000 24,477 180,500 - - 4,983 14-2016 Purchase Police Vehicles/Equipment 36,064 266,000 - 36,064 266,000 - - - 16-2016 Fencing Lenola Ball-Fields 2,322 40,000 - 2,322 40,000 - - - 2017-2 Replace W.B. Park Synthetic Turf Field 87,963 575,000 78,000 12,706 575,000 - 71,328 224,585 2017-4 2017 Roads Resurfacing Program 2,000,446 2,253,400 309,750 1,701,051 2,253,400 - - 609,145 2017-7 Improvements to Recreation Center Facilities 157,512 213,750 - 99,584 213,750 - - 57,928 2017-10 Resurfacing of Borton's Landing Road 413,187 415,150 - 627,176 415,150 - - (213,989) 2017-15 Replace DPW Roof 12,500 120,000 - 40,111 - - - 92,389 2017-17 Acquire Affordable Controls (2,877,750) 2,892,750 - 2,818 - - - 12,182 2017-20 Purchase Police Vehicles 9,500 180,500 - 147,499 - - - 42,501 2017-21 Recon Maple Dawson Courts 16,250 308,750 - 298,621 - - - 26,379 6-2018 Garwood Road Resurfacing - 451,250 - 26,873 - - 23,750 448,127 7-2018 2018 Roads Resurfacing - 2,375,000 - 39,440 - - 125,000 2,460,560 13-2018 Acquisition of 1245 N. Church - - - 21,148 - - 215,000 193,852 18-2018 Purchase of Police Vehicles - - - 500 - 216,117 9,500 (207,117)

Total $ 2,041,709 $ 18,212,000 $ 848,107 $ 3,826,950 $ 11,945,000 $ 660,696 $ 660,695 $ 5,329,865 EXHIBIT C-3 TOWNSHIP OF MOORESTOWN GENERAL CAPITAL FUND SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - UNFUNDED FOR THE YEAR ENDED DECEMBER 31, 2018

ANALYSIS OF BALANCE BALANCE INCREASED BY IMPROVEMENT TRANSFERRED BALANCE UNEXPENDED ORDINANCE DECEMBER 31, IMPROVEMENT AUTHORIZATIONS TO DECEMBER 31, IMPROVEMENT NUMBER DESCRIPTION 2017 AUTHORIZATIONS CANCELLED FUNDED 2018 EXPENDITURES AUTHORIZATIONS

14-2008/7-2009/ Municipal Complex 2-2010/35-2011/ 24-2012$ 107,157 $ - $ 104,690 $ - $ 2,467 $ 2,467 $ - 17-2013 2013 Roads Resurface Program 1,496,000 - - 1,496,000 - - - 18-2013 Purchase of DPW Vehicles 427,500 - - 427,500 - - - 19-2013 Memorial & W.B. Parks 413,000 - - 413,000 - - - 23-2013 Purchase of Police Vehicles 137,750 - - 137,750 - - - 5-2014 2015 Roads Resurfacing Program 878,750 - 538,750 340,000 - - - 6-2014 Purchase Police Vehicles & Equipment 313,500 - - 313,500 - - - 7-2014 Various Drainage Improvements 313,500 - 46,050 267,450 - - - 8-2014 Prelim Exp - Wesley Bishop & Jeff Young 142,500 - - 142,500 - - - 9-2014 Roof Replacement of DPQ Building 61,750 - 61,750 - - - - 3-2015/7-2016 Reconstruction of Municipal Lot 1,092,500 - - 1,092,500 - - -

117 12-2015 Pleasant Valley Mill & Paving 502,550 - 172,550 330,000 - - -

16-2015/8-2016 Wesley Bishop Hockey Rink 285,000 - - 285,000 - - - 18-2015 2016 Road Resurfacing 1,876,250 - 226,250 1,550,000 100,000 - 100,000 19-2015 2016 Road Reconstruction 308,750 - - 308,750 - - - 21-2015 Purchase Police Vehicles 194,750 - - 194,750 - - - 22-2015 Purchase DPW Vehicles 422,750 - - 422,750 - - - 23-2015 Installation Lighting Controls Fields 66,500 - - 66,500 - - - 2-2016 Library Demolition Project 152,000 - - 152,000 - - - 13-2016 Construction of Dog Park 180,500 - - 180,500 - - - 14-2016 Purchase Police Vehicles/Equipment 266,000 - - 266,000 - - - 16-2016 Fencing Lenola Baseball Fields 47,500 - 7,500 40,000 - - - 2-2017 Replace Artificial Turf 578,672 - 3,672 575,000 - - - 4-2017 2017 Roads Program 2,253,400 - - 2,253,400 - - - 7-2017 Improve Rec Facilities 213,750 - - 213,750 - - - 10-2017 Bortons Landing Road 415,150 - - 415,150 - - - 15-2017 Repalce DPW Roof 235,500 - 65,500 120,000 50,000 - 50,000 17-2017 Affordable Controls 2,892,750 - - 2,892,750 - - - 20-2017 Police Vehicles & Equipment 180,500 - - 180,500 - - - 21-2017 Maple/Dawson Courts 308,750 - - 308,750 - - - 6-2018 Garwood Resurfacing - 451,250 - 451,250 - - - 7-2018 2018 Road Resurface - 2,375,000 - 2,375,000 - - - 13-2018 Acquistion 1245 N. Church - 4,085,000 - - 4,085,000 - 4,085,000 18-2018 Purchase of Police Vehicles - 180,500 - - 180,500 66,203 114,297

Total $ 16,764,929 $ 7,091,750 $ 1,226,712 $ 18,212,000 $ 4,417,967 $ 68,670 $ 4,349,297 EXHIBIT C-4 TOWNSHIP OF MOORESTOWN GENERAL CAPITAL FUND SCHEDULE OF DUE FROM/(TO) CURRENT FUND FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017$ 7

Decreased by: Interest Earned on Investments $ 10 Other Transfers from Current - 10

Balance December 31, 2018 $ (3)

EXHIBIT C-5 SCHEDULE OF DEFERRED CHARGES TO FUTURE TAXATION - FUNDED FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017 $ 25,315,000

Increased by: 2018 Bonds Issued 18,212,000

Subtotal 43,527,000

Decreased by: Budget Appropriations: Serial Bonds Payable $ 2,880,000 Premium used to paydown 2018 Bonds 1,447,000 4,327,000

Balance December 31, 2018 $ 39,200,000

118 EXHIBIT C-6 (Page 1 of 2) TOWNSHIP OF MOORESTOWN GENERAL CAPITAL FUND SCHEDULE OF IMPROVEMENT AUTHORIZATIONS FOR THE YEAR ENDED DECEMBER 31, 2018

PRIOR YEAR ORDINANCE IMPROVEMENT ORDINANCE BALANCE DECEMBER 31, 2017 2018 ENCUMBRANCES BALANCE DECEMBER 31, 2018 NUMBER DESCRIPTION DATE AMOUNT FUNDED UNFUNDED AUTHORIZATIONS RECLASSIFIED EXPENDED ENCUMBRANCES CANCELED FUNDED UNFUNDED

1897-99 Aesthetic Impact Fees 8/18/1999 19,800$ 3,300 $ - $ - $ - $ - $ - -$ $ 3,300 -

2020-02/ 12/11/2002 25,000 21-2003 Reconstruction of Snyder Place 7/28/2003 155,000 3,390 ------3,390 -

4-2005 Reconstruction of Pearl Street 4/4/2005 247,500 6,749 ------6,749 -

14-2008/ Preliminary Expenses to Town 7/14/2008 250,000 - 88,028 - 16,663 - - 104,691 - - 7-2009 Hall & Library Renovations 4/20/2009 2,000,000 2-2010 3/28/2010 500,000 35-2011 12/12/2011 1,500,000 24-2012 9/10/2012 13,075,000

37-2008 Acquisition of 1 High Street 12/1/2008 425,000 31,723 ------31,723 -

33-2011 Preliminary Expenses - Park Lighting 10/24/2011 0 12 - - - - - 12 - -

6-2012 Reconstruction of W. Spruce & Magnolia 2/27/2012 379,500 61,338 - - 2,524 - 2,524 - 61,338 - 119

25-2012 Wesley Bishop North Fields 9/10/2012 1,510,000 60,133 ------60,133 -

17-2013 2013 Roads Resurfacing Program 9/10/2013 1,575,000 - 88,951 - 13,133 2,848 - 99,236 - -

18-2013 Purchase of DPW Vehicles 9/10/2013 450,000 - 34,615 - 60 26,314 - 8,361 - -

19-2013 Memorial & Wesley Bishop 9/10/2013 435,000 - 48,843 - - 3,318 - - 45,525 -

23-2013 Purchase of Police Vehicles 10/07/2013 145,000 - 1,429 - - 1,429 - - - -

5-2014 2014/2015 Roads Resurfacing 8/18/2014 925,000 - 606,711 - 2,642 64,702 - 544,651 - -

6-2014 Purchase Police Vehicles & Equip 8/18/2014 330,000 - 3,332 - 22,922 26,254 - - - -

7-2014 Various Drainage Improvements 8/18/2014 330,000 - 69,051 - 12,452 11,472 - 70,031 - -

8-2014 Prelim. Exp. - Wesley Bishop 8/18/2014 150,000 - 50,430 - 77,133 3,595 77,133 - 46,835 -

9-2014 Replace DPW Roof 8/18/2014 65,000 3,250 61,750 - - - - 65,000 - -

3-2015 Reconstruction of Municipal Lot 4/27/2015 150,000 - 1,356 - 20,966 22,322 - - - - 7-2016 5/23/2016 1,000,000

12-2015 Pleasant Valley Mill & Paving 7/27/2015 725,000 - 187,527 - 154,427 76,062 19,759 172,550 73,583 - EXHIBIT C-6 (Page 2 of 2) TOWNSHIP OF MOORESTOWN GENERAL CAPITAL FUND SCHEDULE OF IMPROVEMENT AUTHORIZATIONS FOR THE YEAR ENDED DECEMBER 31, 2018

PRIOR YEAR ORDINANCE IMPROVEMENT ORDINANCE BALANCE DECEMBER 31, 2017 2018 ENCUMBRANCES BALANCE DECEMBER 31, 2018 NUMBER DESCRIPTION DATE AMOUNT FUNDED UNFUNDED AUTHORIZATIONS RECLASSIFIED EXPENDED ENCUMBRANCES CANCELLED FUNDED UNFUNDED

16-2015 Wesley Bishop Hockey Rink 9/21/2015 100,000 - 14,415 $ - $ 56,732 $ 59,300 $ - $ - $ 11,847 $ - 8-2016/8-2017 5/23/2016 150,000

18-2015 2016 Road Resurfacing 11/30/2015 1,975,000 - 412,588 - 367,219 428,395 22,974 226,250 2,188 100,000

19-2015 2016 Road Reconstruction 11/30/2015 325,000 - 273,038 - 19,745 1,250 19,745 - 271,788 -

21-2015 Purchase Police Vehicles 11/30/2015 205,000 - 3,588 - 13,138 14,243 2,483 - - -

22-2015 Purchase DPW Vehicles 11/30/2015 445,000 - 103,378 - - 2,568 86,177 - 14,633 -

23-2015 Installation Lighting Controls Fields 11/30/2015 70,000 2,488 - - - 2,488 - - - -

13-2016 Construction of Dog Park 9/12/2016 370,000 - 9,113 - 20,347 24,477 - - 4,983 -

14-2016 Purchase Police Vehicles/Equipment 9/26/2016 280,000 - 3,753 - 32,311 36,064 - - - -

16-2016 Install Fencing at Ball Parks 9/26/2016 50,000 - 9,822 - - 2,322 - 7,500 - -

120 2-2017 Replace Artificial Turf Field 2/6/2017 650,000 - 153,530 - 9,433 12,706 - 79,047 71,210 -

4-2017 2017 Roads Program 3/27/2017 2,450,000 - 97,780 - 1,980,666 1,701,051 348,567 - 28,828 -

7-2017 Improve Rec Facilities 6/12/2017 225,000 - 157,512 - - 99,584 43,601 - 14,327 -

10-2017 Bortons Landing Road 6/26/2017 850,000 365,750 415,150 - 45,287 627,176 49,263 - 149,748 -

15-2017 Replace DPW Roof 9/11/2017 248,000 - 207,000 - 41,000 40,111 81,655 65,500 10,734 50,000

17-2017 Acquire Affordable Controls 9/25/2017 3,045,000 - 15,000 - - 2,818 - - 12,182 -

20-2017 Purchase Police Vehicles 11/13/2017 190,000 9,500 180,500 - - 147,499 42,500 - 1 -

21-2017 Recon Maple Dawson Courts 11/27/2017 325,000 - 281,500 - 43,500 298,621 25,952 - 427 -

6-2018 Garwood Road Resurfacing 6/11/18 725,000 - - 725,000 - 26,873 45,695 - 652,432 -

7-2018 2018 Roads Resurfacing 6/11/18 2,500,000 - - 2,500,000 - 39,440 343,378 - 2,117,182 -

13-2018 Acquisition of 1245 N. Church 7/9/18 4,300,000 - - 4,300,000 - 21,148 185 - 193,667 4,085,000

18-2018 Purchase of Police Vehicles 9/24/18 190,000 - - 190,000 - 500 75,203 - - 114,297

Total $ 547,633 $ 3,579,690 $ 7,715,000 $ 2,952,300 $ 3,826,950 $ 1,286,794 $ 1,442,829 $ 3,888,753 $ 4,349,297

Capital Improvement Fund $ 373,250 Deferred Charges to Future Taxation - Unfunded 7,091,750 Grant 250,000 $ - Cash Disbursed - 3,826,950

Total $ 7,715,000 $ 3,826,950 EXHIBIT C-7 TOWNSHIP OF MOORESTOWN GENERAL CAPITAL FUND SCHEDULE OF CAPITAL IMPROVEMENT FUND FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017$ 157,621

Increased by: 2018 Budget Appropriation 350,000

Subtotal 507,621

Decreased by: Appropriated to Finance Improvement Authorizations 373,250

Balance December 31, 2018$ 134,371

121 EXHIBIT C-8

TOWNSHIP OF MOORESTOWN GENERAL CAPITAL FUND SCHEDULE OF GENERAL SERIAL BONDS FOR THE YEAR ENDED DECEMBER 31, 2018

MATURITIES OF BONDS OUTSTANDING BALANCE DECREASED DECREASED BALANCE DATE OF ORIGINAL DECEMBER 31, 2018 INTEREST DECEMBER 31, BONDS BY PRINCIPAL BY PREMIUM DECEMBER 31, PURPOSE ISSUE ISSUE DATE AMOUNT RATE 2017 ISSUED PAID APPLIED 2018

General Improvement Bonds 08/15/10 8,297,000 8/15/19 385,000 2.500% $ 6,000,000 -$ $ 375,000 $ - $ 5,625,000 Series 2010 8/15/20 400,000 3.000% 8/15/21 415,000 3.000% 8/15/22 430,000 3.000% 8/15/23 445,000 3.000% 8/15/24 460,000 3.000% 8/15/25 480,000 3.125% 8/15/26 500,000 3.250% 8/15/27 520,000 3.250% 8/15/28 530,000 3.375% 8/15/29 530,000 3.500% 8/15/30 530,000 3.625%

General Obligation Refunding 02/27/12 5,790,000 1,240,000 - 1,240,000 - -

General Obligation Bonds 05/21/2013 16,950,000 1/15/19 855,000 3.000% 14,910,000 - 500,000 - 14,410,000 Series 2013 1/15/20 870,000 3.000% 1/15/21 890,000 3.000% 1/15/22 910,000 3.000% 1/15/23 935,000 3.000% 1/15/24 960,000 3.000% 1/15/25 990,000 3.250% 1/15/26 1,000,000 3.500% 1/15/27 1,000,000 3.500% 1/15/28 1,000,000 4.000% 1/15/29 1,000,000 4.000% 1/15/30 1,000,000 4.000% 1/15/31 1,000,000 4.000% 1/15/32 1,000,000 4.000% 1/15/33 1,000,000 4.000%

Refunding Bonds - Series 2015 04/14/2015 3,950,000 1/15/19 780,000 3.000% 3,165,000 - 765,000 - 2,400,000 1/15/20 800,000 3.000% 1/15/21 820,000 3.000%

General Obligation Bonds Series 2018 8/28/2018 18,212,000 2/1/19 580,000 5.000% - 18,212,000 - 1,447,000 16,765,000 2/1/20 575,000 5.000% 2/1/21 585,000 5.000% 2/1/22 735,000 5.000% 2/1/23 755,000 5.000% 2/1/24 780,000 5.000% 2/1/25 795,000 5.000% 2/1/26 815,000 5.000% 2/1/27 840,000 5.000% 2/1/28 865,000 5.000% 2/1/29 900,000 5.000% 2/1/30 945,000 5.000% 2/1/31 990,000 4.000% 2/1/32 1,030,000 4.000% 2/1/33 1,065,000 3.000% 2/1/34 1,100,000 3.125% 2/1/35 1,130,000 3.250% 2/1/36 1,140,000 3.250% 2/1/37 1,140,000 3.250%

Total $ 25,315,000 18,212,000$ $ 2,880,000 $ 1,447,000 $ 39,200,000

Paid by Current Fund $ 2,826,065 Paid by Open Space 53,935

$ 2,880,000

122 EXHIBIT C-9 TOWNSHIP OF MOORESTOWN GENERAL CAPITAL FUND SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED FOR THE YEAR ENDED DECEMBER 31, 2018

BALANCE IMPROVEMENT BALANCE ORDINANCE DECEMBER 31, IMPROVEMENT AUTHORIZATIONS BONDS/NOTES DECEMBER 31, NUMBER IMPROVEMENT DESCRIPTION 2017 AUTHORIZATIONS CANCELLED ISSUED/PAID 2018

23-2012 / 35-2011 / 2-2010 / 7-2009 / Amend Municipal Complex 14-2008 Project $ 107,156 $ - $ 104,690 $ - $ 2,466 5-2014 2015 Roads Resurfacing Program 578,750 - 538,750 40,000 - 7-2014 Various Drainage Improvements 46,050 - 46,050 - - 9-2014 Roof Replacement of DPQ Building 61,750 - 61,750 - - 12-2015 Pleasant Valley Milling and Paving 172,550 - 172,550 - - 18-2015 2016 Road Resurfacing Program 596,250 - 226,250 270,000 100,000 19-2015 2016 Road Reconstruction Project 8,750 - - 8,750 - 16-2016 Install Fencing - Lenola Baseball Fields 7,500 - 7,500 - - 2-2017 Replace W.B. Synthetic Turf Field 3,672 - 3,672 - -

123 15-2017 Replace DPW Roof 235,500 - 65,500 120,000 50,000 17-2017 Acquire Affordable Housing Controls 2,892,750 - - 2,892,750 - 20-2017 Police Vehicles & Equipment 180,500 - - 180,500 - 21-2017 Reconstruction - Maple Dawson Tennis/B-Ball Courts 308,750 - - 308,750 - 6-2018 Garwood Road Resurfacing - 451,250 - 451,250 - 7-2018 2018 Roads Resurfacing Program - 2,375,000 - 2,375,000 - 13-2018 Acquistion of 1245 N. Church Street - 4,085,000 - - 4,085,000 18-2018 Purchase Police Vehicles - 180,500 - - 180,500

Total$ 5,199,928 $ 7,091,750 $ 1,226,712 $ 6,647,000 $ 4,417,966 EXHIBIT C-10 TOWNSHIP OF MOORESTOWN GENERAL CAPITAL FUND SCHEDULE OF RESERVE FOR DEBT SERVICE FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017$ 333,150

Increased by: Receipts $ 17,717 Cancelled Improvement Authorizations 212,855 230,572

Subtotal 563,722

Decreased by Disbursements: Anticipated Revenue Current Fund 130,000

Balance December 31, 2018 $ 433,722

ANALYSIS OF BALANCE

ORDINANCE NUMBER DESCRIPTION OF IMPROVEMENT AMOUNT PLEDGED TO

10-2006/25-2006 Construction of Artificial Turf Field $ 14,525 Bonds 16-2012 Installation of Lighting at Sports Fields 88,934 Bonds 28-2008 Wesley Bishop/Jeff Young Park Improvements 43,703 Bonds 30-2009 Purchase DPW Vehicles 11,207 Bonds 31-2009 Various Drainage 43,831 Bonds 25-2012 Wesley Bishop North Fields (lower turf) 12,000 Bonds 17-2013 2013 Roads Resurfacing Program 99,236 Bonds 18-2013 Purchase DPW Vehicles 8,361 Bonds 5-2014 2015 Roads Resurfacing Program 5,902 Bonds 7-2014 Various Drainage 23,981 Bonds 2-2017 Replace Artificial Turf 82,042 Notes

Total $ 433,722

124 EXHIBIT C-11 TOWNSHIP OF MOORESTOWN GENERAL CAPITAL FUND SCHEDULE OF BOND ANTICIPATION NOTES PAYABLE FOR THE YEAR ENDED DECEMBER 31, 2018

ORIGINAL BALANCE BALANCE ORDINANCE DATE OF ISSUE INTEREST DECEMBER 31, DECEMBER 31, NUMBERIMPROVEMENT DESCRIPTION ISSUE DATE MATURITY RATE 2017 ISSUED MATURED 2018

2013-17Road Resurfacing Program 2013 09/01/15 08/30/17 08/29/18 3.000%$ 1,496,000 $ - $ 1,496,000 $ -

2013-18Purchase DPW Vehicles & Equipment 09/01/15 08/30/17 08/29/18 3.000% 427,500 - 427,500 -

2013-19 Memorial Park and Skate Park 09/01/15 08/30/17 08/29/18 3.000% 413,000 - 413,000 -

2013-23 Purchase Police Vehicles 09/01/15 08/30/17 08/29/18 3.000% 137,750 - 137,750 -

2014-05 Road Resurfacing Program 2015 09/01/15 08/30/17 08/29/18 3.000% 300,000 - 300,000 -

2014-06 Purchase Police Vehicles & Equipment 09/01/15 08/30/17 08/29/18 3.000% 313,500 - 313,500 -

2014-07 Various Drainage Repairs 09/01/16 08/30/17 08/29/18 3.000% 267,450 - 267,450 -

2014-08 Wesley Bishop/Jeff Young Park 09/01/16 08/30/17 08/29/18 3.000% 142,500 - 142,500 -

2015-03/2016-07 Parking Lot - 2nd Street 09/01/15 09/01/16 09/01/17 2.000% 1,092,500 - 1,092,500 -

2015-12 Pleasant Valley Ave Milling & Paving 08/30/17 08/30/17 08/29/18 3.000% 330,000 - 330,000 - 125

2015-16/2016-08 Wesley Bishop Hockey Rink Recon 09/01/16 08/30/17 08/29/18 3.000% 285,000 - 285,000 -

2015-18 2016 Road Resurfacing Program 09/01/16 08/30/17 08/29/18 3.000% 1,280,000 - 1,280,000 -

2015-19 2016 Roads Reconstruction Project 08/30/17 08/30/17 08/29/18 3.000% 300,000 - 300,000 -

2015-21 Purchase Police Vehicles/Equipment 09/01/16 08/30/17 08/29/18 3.000% 194,750 - 194,750 -

2015-22 Purchase DPW Vehicles/Equipment 08/30/17 08/30/17 08/29/18 3.000% 422,750 - 422,750 -

2015-23 Install Lighting Controls - Parks 09/01/16 08/30/17 08/29/18 3.000% 66,500 - 66,500 -

2016-2 Library Demolition Project 09/01/16 08/30/17 08/29/18 3.000% 152,000 - 152,000 -

2016-13 Construction of Dog Park 08/30/17 08/30/17 08/29/18 3.000% 180,500 - 180,500 -

2016-14 Purchase of Police Vehicles/Equipment 08/30/17 08/30/17 08/29/18 3.000% 266,000 - 266,000 -

2016-16 Install New Fencing at Lenola Baseball Fiel 08/30/17 08/30/17 08/29/18 3.000% 40,000 - 40,000 -

2017-2 Replace W.B. Park Synthetic Turf Field 08/30/17 08/30/17 08/29/18 3.000% 575,000 - 575,000 -

2017-4 2017 Roads Resurfacing Program 08/30/17 08/30/17 08/29/18 3.000% 2,253,400 - 2,253,400 -

2017-7 Improvements to Recreation Center Facilitie 08/30/17 08/30/17 08/29/18 3.000% 213,750 - 213,750 -

2017-10 Resurfacing of Borton's Landing Road 08/30/17 08/30/17 08/29/18 3.000% 415,150 - 415,150 -

$ 11,565,000 $ - $ 11,565,000 $ - EXHIBIT C-12 TOWNSHIP OF MOORESTOWN GENERAL CAPITAL FUND SCHEDULE OF RECEIVABLES FOR THE YEAR ENDED DECEMBER 31, 2018

Department of Due From County Transportation CDBG Parks Grant - Dog Park

Balance December 31, 2017 $ 609,000 $ 78,000 $ 90,000

Increased by: 2018 Grant Awards 250,000 - -

Subtotal 859,000 78,000 90,000

Decreased by: Grant Receipts 309,750 78,000 90,000

Balance December 31, 2018 $ 549,250 $ - $ -

126 WATER-SEWER UTILITY FUND

127 THIS PAGE INTENTIONALLY LEFT BLANK.

128 EXHIBIT D-5 TOWNSHIP OF MOORESTOWN WATER-SEWER UTILITY OPERATING FUND SCHEDULE OF UTILITY CASH AND INVESTMENTS - TREASURER FOR THE YEAR ENDED DECEMBER 31, 2018

OPERATING FUND ASSESSMENT TRUST CAPITAL FUND

Balance December 31, 2017$ 6,703,614 $ 82,261 $ 6,775,347

Increased by Receipts: Anticipated Revenues$ 8,889,518 $ 900 $ - Interest Earnings 149,342 933 64 Premiums on Notes Issued - - 657 Bond Proceeds - - 4,498,000 Appropriation Refunds 125,956 - - Transfer from Utility Operating Fund - - 400,000 Transfer from Utility Assessment Fund 900 - -

Subtotal 9,165,716 1,833 4,898,721

Total 15,869,330 84,094 11,674,068

Decreased by Disbursements: 2018 Budget Appropriations 7,818,927 - - 2017 Appropriation Reserves 590,726 - - Accounts Payable 115,780 - - Overpayments 7,108 - - Transfer to Utility Operating Fund - 900 - Interest on Bonds 677,425 - - Revenue Refunds 255 - - Transfer to Utility Capital Fund 400,000 - - Improvement Authorizations - - 3,838,528

Total Disbursements 9,610,221 900 3,838,528

Balance December 31, 2018 $ 6,259,109 $ 83,194 $ 7,835,540

129 EXHIBIT D-6 TOWNSHIP OF MOORESTOWN WATER-SEWER UTILITY OPERATING FUND SCHEDULE OF DUE FROM/(TO) WATER-SEWER UTILITY CAPITAL FUND FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017$ 10

Increased by: Current Year Interest Earned 64

Balance December 31, 2018 $ 74

EXHIBIT D-7 WATER-SEWER ASSESSMENT TRUST FUND ANALYSIS OF WATER-SEWER UTILITY ASSESSMENT TRUST CASH FOR THE YEAR ENDED DECEMBER 31, 2018

Fund Balance $ 83,157

Increased by:

Due to Utility Operating 37

Balance December 31, 2018 $ 83,194

130 EXHIBIT D-8 TOWNSHIP OF MOORESTOWN WATER-SEWER UTILITY CAPITAL FUND ANALYSIS OF CASH FOR THE YEAR ENDED DECEMBER 31, 2018

BALANCE BALANCE (OVERDRAFT) DISBURSEMENTS (OVERDRAFT) DECEMBER 31, BOND RECEIPTS IMPROVEMENT TRANSFERS DECEMBER 31, 2017 ISSUED MISCELLANEOUS AUTHORIZATIONS MISCELLANEOUS FROM TO 2018

Fund Balance $ 346,840 $ - $ 657 $ - $ - -$ -$ $ 347,497 Capital Improvement Fund 252,326 - 400,000 - 49,000 - 603,326 Due Water & Sewer Utility Operating Fund 10 - 64 - - - - 74 Miscellaneous 1 ------1

ORDINANCE IMPROVEMENT NUMBER AUTHORIZATIONS

17-2010 Repairs to Sewer Plant (1,095) ------(1,095) 6-2012 Reconstruction of W. Spruce and Magnolia Court 16,008 ------16,008 7-2012 East Second Street Water Main 217,210 ------217,210 18-2013 Purchase of DPW Vehicles 144,307 - - 113,994 - - - 30,313 21-2013 Infrastructure Improvements 379,470 403,000 - 69,812 - - - 712,658

131 10-2014 Replacement of Various Water Mains 178,736 - - 13,300 - - - 165,436

10-2015 WTP Feasibility Study 31,948 - - 31,036 - - - 912 13-2015/12-2016 Kings Highway WTP Improvements 864,687 - - 650,872 - - - 213,815 19-2015 2016 Roads Reconstruction Project 164,290 - - 11,311 - - - 152,979 20-2015/12-2017 Replace Various Water Mains 1,925,820 - - 823,600 - - - 1,102,220 22-2015 Purchase DPW Vehicles 83,485 ------83,485 24-2015 Pavement Repairs 14,520 - - 13,190 - - - 1,330 11-2016 N Church WTP Equipment 1,970 ------1,970 5-2017 N. Church WTP Upgrades 1,142,028 - - 649,933 - - - 492,095 6-2017 Hartford Road WTP Upgrades 842,336 - - 805,218 - - - 37,118 15-2017 Replace Various STP Roofs 22,340 600,000 - 421,231 - - - 201,109 16-2017 Replace Various Water Mains 148,110 3,495,000 - 190,571 - - - 3,452,539 17-2018 Extend Fiber Network - - - 44,460 - - 49,000 4,540

Total $ 6,775,347 $ 4,498,000 $ 400,721 $ 3,838,528 $ - 49,000$ 49,000$ $ 7,835,540 EXHIBIT D-9 TOWNSHIP OF MOORESTOWN WATER-SEWER UTILITY OPERATING FUND SCHEDULE OF SERVICE CHARGES RECEIVABLE FOR THE YEAR ENDED DECEMBER 31, 2018

TOTAL WATER SEWER

Balance December 31, 2017$ 918,332 $ 503,714 $ 414,618

Increased by: Service Charges Levied 8,205,304 4,603,976 3,601,328 Transferred to Overpayment 9,345 4,908 4,437

Subtotal 9,132,981 5,112,598 4,020,383

Decreased by: Collections 8,361,898 4,725,351 3,636,547 Collections by Current Fund 502 171 331 Overpayments Applied 2,237 2,237 - Cancellations 46,136 25,861 20,275

Subtotal 8,410,773 4,753,620 3,657,153

Balance December 31, 2018 $ 722,208 $ 358,978 $ 363,230

EXHIBIT D-10 WATER-SEWER UTILITY ASSESSMENT TRUST FUND SCHEDULE OF WATER-SEWER ASSESSMENTS RECEIVABLE FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2018 & 2017 $2,123

BALANCE ORDINANCE DATE OF DECEMBER 31, NUMBER IMPROVEMENTS DESCRIPTION CONFIRMATION 2018

426 Sanitary Sewer Improvements - Route 38 12/17/62 $ 698 451 Water Improvements - Westfield Road 12/29/66 1,425

Total $ 2,123

132 EXHIBIT D-11 TOWNSHIP OF MOORESTOWN WATER-SEWER UTILITY ASSESSMENT TRUST FUND SCHEDULE OF WATER-SEWER ASSESSMENTS HELD IN ABEYANCE FOR THE YEAR ENDED DECEMBER 31, 2018

BALANCE ORDINANCE DATE OF DECEMBER 31, NUMBER IMPROVEMENTS DESCRIPTION CONFIRMATION 2018

Sanitary Sewer Improvements: 430 Stanwick Road 11/29/65 $ 397 540 Timber Croft Road 06/22/70 1,174 426 Route No. 38 07/24/70 2,893 471/567/588 North Valley Road 08/28/72 17,300 643 Mount Laurel Road 08/14/78 4,242 767/793 Ivy & Regenhard Avenues 03/10/80 5,400 Water Improvements: 350 Hartford & Borton Landing Roads 10/31/60 5,108 451 Westfield Road 10/29/66 8,383 485 Tom Brown Road 12/29/66 10,383 583 North Church Street 06/19/72 334 585 Riverton Road 02/28/72 1,588

Total $ 57,202

The above represents connection fees not yet due on rural properties located within the Township until connection is made to the water and sewer systems

EXHIBIT D-12 WATER-SEWER UTILITY CAPITAL FUND SCHEDULE OF FIXED CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017 $ 46,991,471

Increased by: Paid by Operating Budget $ 55,875 55,875

Balance December 31, 2018 $ 47,047,346

133 EXHIBIT D-13

TOWNSHIP OF MOORESTOWN WATER-SEWER UTILITY CAPITAL FUND SCHEDULE OF FIXED CAPITAL AUTHORIZED AND UNCOMPLETED FOR THE YEAR ENDED DECEMBER 31, 2018

BALANCE TRANSFER BALANCE ORDINANCE IMPROVEMENT DECEMBER 31, TO FIXED AUTHORIZATION DECEMBER 31, NUMBER DESCRIPTION DATE AMOUNT 2017 AUTHORIZATIONS CAPITAL CANCELLED 2018

6-2012 W. Spruce and Magnolia Court 2/27/12 95,500$ $ 95,500 $ - $ - $ - $ 95,500

7-2012 E. Second Street Water Main 2/27/12 1,275,000 1,275,000 - - - 1,275,000

18-2013 Purchase of DPW Vehciles 9/10/13 450,000 450,000 - - - 450,000

21-2013/14-2017 Infrastructure Improvements 9/10/13 1,175,000 1,615,000 - - - 1,615,000

10-2014 Varioues Water Mains 8/18/14 1,700,000 1,700,000 - - - 1,700,000

10-2015 WTP Feasibility Study 5/18/15 250,000 250,000 - - - 250,000

134 13-2015/12-2016 P.E. Kings Highway WTP 7/27/15 710,000 7,885,000 - - - 7,885,000

19-2015 2016 Roads Reconstruction 11/30/15 180,000 180,000 - - - 180,000

20-2015/12-2015 Various Water Mains 11/30/15 1,650,000 2,250,000 - - - 2,250,000

22-2015 Purchase DPW Vehicles 11/30/15 85,000 85,000 - - - 85,000

24-2015 Pavement Repairs 11/30/15 125,000 125,000 - - - 125,000

11-2016 Purchase N Church St WTP Equipment 8/8/16 380,000 380,000 - - - 380,000

5-2017 N. Church WTP Upgrades 4/24/17 1,500,000 1,500,000 - - - 1,500,000

6-2017 Hartford Road WTP Upgrades 4/24/17 1,050,000 1,050,000 - - - 1,050,000

15-2017 Replace Various STP Roofs 9/11/17 662,000 662,000 - - - 662,000

16-2017 Replace Various Water Mains 9/11/17 3,675,000 3,675,000 - - - 3,675,000

17-2018 Extend Fiber Network 9/10/18 980,000 - 980,000 - - 980,000

20-2018 Upgrade N Church WTP 12/17/18 18,975,000 - 18,975,000 - - 18,975,000

21-2018 Upgrade Hartford WTP 12/17/18 123,000 - 12,300,000 - - 12,300,000

Total $ 23,177,500 $ 32,255,000 $ - $ - $ 55,432,500 EXHIBIT D-14 TOWNSHIP OF MOORESTOWN WATER-SEWER UTILITY OPERATING FUND SCHEDULE OF 2017 APPROPRIATION RESERVES FOR THE YEAR ENDED DECEMBER 31, 2018

BALANCE DECEMBER 31, ENCUMBRANCES MODIFIED PAID OR BALANCE 2017 RECLASSIFIED BALANCE CHARGED LAPSED

Operations: Salaries & Wages$ 198,380 $ - 198,380$ 37,524$ $ 160,856 Other Expenses 988,497 356,909 1,345,406 525,018 820,388 Capital Improvements: Capital Outlay 106,545 26,504 133,049 26,486 106,563 Statutory Expenditures: Social Security System 24,087 - 24,087 1,617 22,470 Unemployment/Disability Insurance 2,925 - 2,925 81 2,844

Total $ 1,320,434 $ 383,413 1,703,847$ 590,726$ $ 1,113,121

Cash Disbursed 590,726$

Total 590,726$

EXHIBIT D-15 SCHEDULE OF ACCRUED INTEREST ON BONDS AND NOTES FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017 $ 248,702

Increased by: Utility Operating Budget Appropriation 784,311

Subtotal 1,033,013

Decreased by: Cash Disbursements 677,425

Balance December 31, 2018 $ 355,588

ANALYSIS OF ACCRUED INTEREST DECEMBER 31, 2018

PRINCIPAL OUTSTANDING 12/31/18 FROM TO PERIOD AMOUNT Series

2010 G.O. Bonds$ 2,525,000 8/15/18 12/31/18 4.5 Months$ 28,141 2013 G.O. Bonds 2,110,000 7/15/18 12/31/18 5.5 Months 32,078 2015 Refunding Bonds 500,000 7/15/18 12/31/18 5.5 Months 5,225 2017 G.O. Bonds 15,350,000 8/1/2018 12/31/18 5 Months 229,630 2018 G.O. Bonds 4,285,000 8/1/2018 12/31/18 5 Months 60,514

Total$ 24,770,000 $ 355,588

135 EXHIBIT D-16 TOWNSHIP OF MOORESTOWN WATER-SEWER UTILITY ASSESSMENT TRUST FUND SCHEDULE OF RESERVE FOR ASSESSMENTS FOR THE YEAR ENDED DECEMBER 31, 2018

BALANCE ORDINANCE DECEMBER 31, NUMBER IMPROVEMENTS DESCRIPTION 2018

Assessments Receivable: Water Improvements: 426 Route No. 38 $ 698 451 Westfield Road 1,425 Deferred Assessments: Sanitary Sewer Improvements: 430 Stanwick Road 397 540 Timber Croft Road 1,174 426 Route No. 38 2,893 471/567/588 North Valley Road 17,300 643 Mount Laurel Road 4,242 767/793 Ivy & Regenhard Avenues 7,200 Water Improvements: - 350 Hartford & Borton Landing Roads 5,108 451 Westfield Road 6,583 485 Tom Brown Road 10,383 583 North Church Street 334 585 Riverton Road 1,588

Total $ 59,325

136 EXHIBIT D-17 TOWNSHIP OF MOORESTOWN WATER-SEWER UTILITY CAPITAL FUND SCHEDULE OF IMPROVEMENT AUTHORIZATIONS FOR THE YEAR ENDED DECEMBER 31, 2018

BALANCE BALANCE ORDINANCE ORDINANCE DECEMBER 31, 2017 ENCUMBRANCES DECEMBER 31, 2018 NUMBERIMPROVEMENT DESCRIPTION DATE AMOUNT FUNDED UNFUNDED AUTHORIZATIONS RECLASSIFIED EXPENDED ENCUMBRANCES FUNDED UNFUNDED

6-2012 Reconstruction of W. Spruce and Magnolia Court 2/27/12 95,500 $ 8,388 $ - $ - $ 7,620 $ - $ 7,620 $ 8,388 $ -

7-2012 East Second Street Water Main 2/27/12 1,275,000 217,210 - - - - - 217,210

18-2013 Purchase of DPW Vehicles 9/10/13 450,000 57,212 1,000 - 87,095 113,994 - 30,313 1,000

21-2013 Water & Sewer Infrastructure Improvements 9/10/13 1,175,000 267,370 440,000 - 112,100 69,812 45,100 667,558 37,000

10-2014 Replacment of Various Water Mains 8/18/14 1,700,000 4,825 - - 173,911 13,300 160,611 4,825 -

10-2015 WTP Feasibility Study 5/18/15 250,000 3,215 - - 28,733 31,036 - 912 -

13-2015/12-2016 Kings Highway WTP Improvements 7/27/15 710,000 180,942 - - 683,746 650,872 181,241 32,575 -

19-2015 2016 Roads Reconstruction Project 11/30/15 180,000 151,690 - - 12,600 11,311 12,600 140,379 -

137 20-2015 Replace Various Water Mains 11/30/15 1,650,000 246,109 - - 1,679,711 823,600 894,339 207,881 -

22-2015 Purchase DPW Vehicles 11/30/15 85,000 83,485 500 - - - - 83,485 500

24-2015 Pavement Repairs 11/30/15 125,000 1,520 - - 13,000 13,190 - 1,330 -

11-2016 Purchase North Church Street WTP Equipment 8/08/16 380,000 1,970 - - - - - 1,970 -

5-2017 N. Church WTP Upgrades 4/24/17 1,500,000 204,735 - - 937,293 649,933 287,360 204,735 -

6-2017 Hartford Road WTP Upgrades 4/24/17 1,050,000 52,345 - - 789,991 805,218 - 37,118 -

15-2017 Replace Various STP Roofs 9/11/17 662,000 - 553,000 - 99,340 421,231 186,407 14,702 30,000

16-2017 Replace Various Water Mains 9/11/17 3,675,000 - 3,460,000 - 183,110 190,571 - 3,452,539 -

17-2018 Extend Fiber Network 9/10/18 980,000 - - 980,000 - 44,460 687,467 - 248,073

20-2018 Construct N Church WTP 12/17/18 18,975,000 - - 18,975,000 - - 18,240,620 - 734,380

21-2018 Construct Hartford WTP 12/17/18 12,300,000 - - 12,300,000 - - 11,286,777 - 1,013,223

Total $ 1,481,016 $ 4,454,500 $ 32,255,000 $ 4,808,250 $ 3,838,528 $ 31,990,142 $ 5,105,920 $ 2,064,176

Capital Improvement Fund $ 49,000 Bonds & Notes Authorized 32,206,000

Total $ 32,255,000 EXHIBIT D-18 TOWNSHIP OF MOORESTOWN WATER-SEWER UTILITY CAPITAL FUND SCHEDULE OF CAPITAL IMPROVEMENT FUND FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017$ 252,326

Increase by: Anticipated from Water-Sewer Utility Operating 400,000

Subtotal 652,326

Decreased by: Appropriated to Finance Improvement Authorizations 49,000

Balance December 31, 2018$ 603,326

EXHIBIT D-19 SCHEDULE OF RESERVE FOR AMORTIZATION FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017$ 43,990,376

Increased by: Paid by Operating Budget$ 55,875 Premium Utilized to Pay 2018 Bond Issue 213,000 Bonds Redeemed 765,000 1,033,875

Balance December 31, 2018$ 45,024,251

EXHIBIT D-20 SCHEDULE OF DEFERRED RESERVE FOR AMORTIZATION FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017$ 1,126,000

Increased by: Down Payment on Ordinances from Capital Improvement Fund 49,000

Balance December 31, 2018$ 1,175,000

138 EXHIBIT D-21 TOWNSHIP OF MOORESTOWN WATER-SEWER UTILITY CAPITAL FUND SCHEDULE OF SERIAL BONDS PAYABLE FOR THE YEAR ENDED DECEMBER 31, 2018

MATURITIES OF BONDS OUTSTANDING BALANCEDECREASED BY BALANCE DATE OF ORIGINALDECEMBER 31, 2018 INTEREST DECEMBER 31, BONDS PRINCIPAL PREMIUM DECEMBER 31, PURPOSE ISSUE ISSUE DATE AMOUNT RATE 2017 ISSUED PAID APPLIED 2018

General Obligation Bonds 08/15/10 3,492,000 8/15/19 160,000 2.500%$ 2,525,000 $ - $ 155,000 $ - $ 2,370,000 Series 2010 8/15/20 165,000 3.000% 8/15/21 175,000 3.000% 8/15/22 180,000 3.000% 8/15/23 185,000 3.000% 8/15/24 195,000 3.000% 8/15/25 200,000 3.125% 8/15/26 210,000 3.250% 8/15/27 215,000 3.250% 8/15/28 225,000 3.375% 8/15/29 230,000 3.500% 8/15/30 230,000 3.625%

General Obligation Bonds 05/21/2013 2,450,000 1/15/19 115,000 3.000% 2,110,000 - 115,000 - 1,995,000 Series 2013 1/15/20 120,000 3.000% 1/15/21 120,000 3.000% 1/15/22 125,000 3.000% 1/15/23 130,000 3.000% 1/15/24 130,000 3.000% 1/15/25 135,000 3.250% 1/15/26 140,000 3.500% 1/15/27 140,000 3.500% 1/15/28 140,000 4.000% 1/15/29 140,000 4.000% 1/15/30 140,000 4.000% 1/15/31 140,000 4.000% 1/15/32 140,000 4.000% 1/15/33 140,000 4.000%

Refunding Bonds - Series 2015 04/14/2015 620,000 1/15/19 125,000 3.000% 500,000 - 120,000 - 380,000 1/15/20 125,000 3.000% 1/15/21 130,000 3.000%

General Obligation Bonds 08/15/2017 15,350,000 2/1/19 375,000 5.000% 15,350,000 - 375,000 - 14,975,000 Series 2017 2/1/20 375,000 5.000% 2/1/21 390,000 5.000% 2/1/22 495,000 5.000% 2/1/23 505,000 5.000% 2/1/24 515,000 5.000% 2/1/25 530,000 5.000% 2/1/26 540,000 5.000% 2/1/27 555,000 5.000% 2/1/28 575,000 4.000% 2/1/29 595,000 4.000% 2/1/30 635,000 4.000% 2/1/31 730,000 2.750% 2/1/32 730,000 2.875% 2/1/33 730,000 2.875% 2/1/34 730,000 3.000% 2/1/35 740,000 3.000% 2/1/36 740,000 3.000% 2/1/37 740,000 3.125% 2/1/38 750,000 3.125% 2/1/39 750,000 3.000% 2/1/40 750,000 3.000% 2/1/41 750,000 3.000% 2/1/42 750,000 3.000%

General Obligation Bonds 8/28/18 4,498,000 2/1/19 120,000 5.000% - 4,498,000 - 213,000 4,285,000 Series 2018 2/1/20 120,000 5.000% 2/1/21 120,000 5.000% 2/1/22 120,000 5.000% 2/1/23 120,000 5.000% 2/1/24 120,000 5.000% 2/1/25 125,000 5.000% 2/1/26 135,000 5.000% 2/1/27 140,000 5.000% 2/1/28 145,000 5.000% 2/1/29 155,000 5.000% 2/1/30 160,000 5.000% 2/1/31 170,000 4.000% 2/1/32 175,000 4.000% 2/1/33 185,000 3.000% 2/1/34 190,000 3.125% 2/1/35 195,000 3.250% 2/1/36 200,000 3.250% 2/1/37 205,000 3.250% 2/1/38 215,000 3.250% 2/1/39 220,000 3.375% 2/1/40 230,000 3.375% 2/1/41 240,000 3.375% 2/1/42 240,000 3.500% 2/1/43 240,000 3.500%

Total $ 20,485,000 $ 4,498,000 $ 765,000 $ 213,000 $ 24,005,000

139 EXHIBIT D-22 TOWNSHIP OF MOORESTOWN WATER-SEWER UTILITY CAPITAL FUND SCHEDULE OF FUND BALANCE FOR THE YEAR ENDED DECEMBER 31, 2018

Balance December 31, 2017$ 346,840

Increased by: Premiums on Bond Sale 657

Balance December 31, 2018$ 347,497

140 EXHIBIT D-23 TOWNSHIP OF MOORESTOWN WATER-SEWER UTILITY CAPITAL FUND SCHEDULE OF BONDS AND NOTES AUTHORIZED BUT NOT ISSUED FOR THE YEAR ENDED DECEMBER 31, 2018

IMPROVEMENT BALANCE AUTHORIZATION BALANCE ORDINANCE IMPROVEMENT DECEMBER 31, 2018 BALANCE BONDS DECEMBER 31, NUMBER DESCRIPTION 2017 AUTHORIZATIONS CANCELLED ISSUED 2018

17-2010 Repairs to Sewer Plant $ 1,095 $ - $ - $ - $ 1,095

18-2013 Purchase of DPW Vehicles and Equipm 1,000 - - - 1,000

21-2013 Improvements to Water and Sewer Infrastructure 440,000 - - 403,000 37,000

22-2015 Purchase DPW Vehicles 500 - - - 500

15-2017 Replace Various STP Roofs 630,000 - - 600,000 30,000

16-2017 Replace Various Water Mains 3,495,000 - - 3,495,000 -

22-2015 Extend Fiber Network - 931,000 - - 931,000

15-2017 Upgrade N Church WTP - 18,975,000 - - 18,975,000

16-2017 Upgrade Hartford WTP - 12,300,000 - - 12,300,000

Total$ 4,567,595 $ 32,206,000 $ - $ 4,498,000 $ 32,275,595

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142 GENERAL FIXED ASSETS

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144 EXHIBIT E-1 TOWNSHIP OF MOORESTOWN GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF INVESTMENT IN FIXED ASSETS DECEMBER 31, 2018 AND 2017

BALANCE BALANCE DECEMBER 31, NET DECEMBER 31, 2017 ADDITIONS DELETIONS 2018

Land & Buildings $ 43,273,137 $ - $ - $ 43,273,137 Equipment & Vehicles 11,945,338 362,930 - 12,308,268

Total $ 55,218,475 $ 362,930 $ - $ 55,581,405

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146

TOWNSHIP OF MOORESTOWN

PART II

SCHEDULE OF FINANCIAL STATEMENT FINDINGS - GOVERNMENT AUDITING STANDARDS

FOR THE YEAR ENDED DECEMBER 31, 2018

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148

TOWNSHIP OF MOORESTOWN SCHEDULE OF FINANCIAL STATEMENT FINDINGS FOR THE YEAR ENDED DECEMBER 31, 2018

This section identifies the significant deficiencies, material weaknesses and instances of noncompliance related to the basic financial statements that are required to be reported in accordance with Government Auditing Standards and with audit requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey.

None.

149

TOWNSHIP OF MOORESTOWN SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS AND QUESTIONED COSTS AS PREPARED BY MANAGEMENT FOR THE YEAR ENDED DECEMBER 31, 2018

This section identifies the status of prior year findings related to the financial statements, federal awards and state financial assistance that are required to be reported in accordance with Government Auditing Standards, Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance), and New Jersey OMB’s Circular 15-08.

Financial Statement Findings

No Prior Year Findings.

FEDERAL AWARDS

N/A – No Federal Single Audit in prior year.

STATE FINANCIAL ASSISTANCE

N/A – No State Single Audit in prior year.

150

TOWNSHIP OF MOORESTOWN

PART III

LETTER OF COMMENTS AND RECOMMENDATIONS – REGULATORY BASIS

FOR THE YEAR ENDED DECEMBER 31, 2018

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152

OFFICIALS IN OFFICE AND SURETY BONDS

The following officials were in office at December 31, 2018:

Name Title

Stacey F. Jordan Mayor Manuel Delgado Deputy Mayor Michael Locatell Councilmember Victoria Napolitano Councilmember Lisa L. Petriello Councilmember Thomas Neff Township Manager Thomas J. Merchel Director of Finance Jennifer DellaValle Tax Collector Karen Ketchen Court Administrator Patricia L. Hunt Township Clerk Lois F. Downey Judge of the Municipal Court Kelly Grant Solicitor Alaimo Group Engineer

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154

Honorable Mayor and Members of the Township Council Township of Moorestown Moorestown, New Jersey

In accordance with requirements prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, the following are the General Comments and Recommendations for the year ended December 31, 2018.

GENERAL COMMENTS:

Contracts and Agreements required to be advertised by (N.J.S.A.40A:11-4)

N.J.S.A.40A:11-4 states every contract or agreement, for the performance of any work or furnishing or hiring of any materials or supplies, the cost or the contract price whereof is to be paid with or out of public funds not included within the terms of Section 3 of this act, shall be made or awarded only by the Governing Body of the contracting unit after public advertising for bids and bidding therefore, except as is provided otherwise in this act or specifically by any other Law. No work, materials or supplies shall be undertaken, acquired or furnished for a sum exceeding in the aggregate the bid threshold, except by contract or agreement.

The bid threshold in accordance with N.J.S.A. 40A:II-4 was $17,500 through November 19, 2018 and $40,000 for the remainder of the year ended December 31, 2018.

It is pointed out that the governing body of the municipality has the responsibility of determining whether the expenditures in any category will exceed the statutory minimum within the fiscal year. Where question arises as to whether any contract or agreement might result in violation of the statute, the solicitor's opinion should be sought before a commitment is made.

Inasmuch as the system of records did not provide for an accumulation of payments for categories for the performance of any work or the furnishing or hiring of any materials or supplies, the results of such an accumulation could not reasonably be ascertained. Disbursements were reviewed, however, to determine whether any clear-cut violations existed.

Our examination of expenditures did not reveal any individual payments or contracts in excess of the bid threshold “for the performance of any work, or the furnishing of any materials, supplies or labor” other than those where bids had been previously sought by public advertisement or where a resolution had been previously adopted under the provisions of N.J.S.A.40A:11-6.

155

Collection of Interest on Delinquent Taxes and Assessments

N.J.S.54:4-67, provides the method for authorizing interest and the maximum rates to be charged for the nonpayment of taxes or assessments on or before the date when they would become delinquent.

The governing body on January 8, 2018 adopted the following resolution authorizing interest to be charged on delinquent taxes:

NOW THEREFORE, BE IT RESOLVED, that if said taxes are deemed to be delinquent for non- payment of taxes, the Tax Collector shall charge eight (8%) percent per annum on the first $1,500.00 of the delinquency, and eighteen (18%) percent per annum on any amount in excess of $1,500.00; and

BE IT FURTHER RESOLVED, by the Council of the Township, that the Tax Collector shall allow that no interest will be charged on payments received and made by the tenth calendar day following the date upon which the same became payable; and

BE IT FURTHER RESOLVED, by the Council of the Township, that the Tax Collector shall charge, in addition to the interest for delinquent taxes, as noted above, a penalty of six (6%) percent of the amount of the delinquency in taxes in excess of $10,000.00 to a taxpayer who fails to pay the delinquency prior to the end of the calendar year.

It appears from an examination of the Collector's record that interest was collected in accordance with the foregoing resolution.

OTHER COMMENTS (FINDINGS):

None.

RECOMMENDATIONS:

None.

156 Appreciation

We express our appreciation for the assistance and courtesies extended to the members of the audit team.

Respectfully submitted,

HOLMAN FRENIA ALLISON, P. C.

Michael Holt Certified Public Accountant Registered Municipal Accountant RMA No. 473

Medford, New Jersey August 5, 2019

157