CHATHAM, NJ - Two resolutions approving the certification of Covid-19 related losses in revenue and the appropriation of $300,000 in special emergency funds were passed by the Borough of Chatham Council at its virtual meeting on Monday night.
Karen Fornaro, Chatham Borough's chief financial officer, was authorized by the governing body to certify a special emergency related to Covid-19 revenue losses to the state by the Dec. 1 deadline.
Fornaro said that Chatham Borough normally takes in $440,000 in train station parking fees, but projects a 2020 revenue loss of $370,000. The CFO also said that Chatham Borough is losing $78,000 in municipal court revenue.
"This has s direct impact for next year's budget," Fornaro said. "The state has put in place some new legislation that allows us to declare a special emergency, and what you can do is spread this revenue loss to future years' budgets. We can spread it over five years, starting in 2022."
Fornaro explains (in the video below) that the borough will have a $2.2 million fund balance at the end of this year. Last year, it was $2.9 million.
The Covid-19 Special Emergency Resolution says, in part:
2. A Special Emergency Deferred Charge is hereby established for COVID-19 affected revenue losses in the total amount of $300,000.
3. That the total emergency appropriation shall be provided for in the budgets of succeeding years beginning in 2022 by the inclusion of not less than $60,000 (must be at least one-fifth of the total amount).
Jocelyn Mathiasen, council president, said the losses are going to affect budgets in the future in the video below.
Chatham Borough Mayor Thaddeus Kobylarz reported on the "sustained and dangerous surge" in Covid-19 cases in New Jersey and gave his advice to residents in the video below.