Current through Register Vol. 56, No. 18, September 16, 2024
(a)
Within 45 days after the appointment of the majority of the members to the
board, the mayor of the municipality, in consultation with the municipality's
governing body, shall develop a proposed financial plan covering the three-year
period beginning with the municipality's current fiscal year.
(b) The financial plan shall be composed of
the following sections: a budgetary plan, an operations plan, an economic
development plan and a capital improvement plan.
1. The budgetary plan shall be general in
nature and shall include revenue and spending targets that must be met by the
municipality through its annual budget. Spending targets may be set by
budgetary line item. If, in the opinion of the board, the municipality does not
have an adequate cash management plan or cash flow analysis, the board may
require that the plan include such matters. The board shall ensure that the
provisions of the plan comply with all applicable provisions of State
law.
2. The operations plan shall
identify and describe opportunities to reduce the costs of providing municipal
services through general reductions of municipal expenditures; sales of surplus
municipal assets; changes in staffing patterns; development of new sources of
revenues; implementation of shared services with other government agencies;
contracting of services to other providers; modifications in municipal service
levels; improved or lower cost operating methods and practices; and any other
measures which would serve to reduce the costs of providing municipal services
as may be developed by the municipality or the board.
3. The capital improvement plan shall follow
and reflect the capital improvement plan adopted pursuant to the "Local Budget
Law," 40A:4-1 et seq., and any
applicable rules adopted by the Local Finance Board.
4. The economic development plan shall
identify and describe appropriate actions for the economic development of the
municipality planned by all government agencies, non-profit and private sector
organizations engaged in the economic development of the
municipality.
(c) Within
30 days of developing the financial plan, the governing body shall conduct a
public hearing on the proposed financial plan and may then adopt it in full or
with amendments.
(d) Not later than
120 days after the date that the financial review board has its first meeting,
the governing body of the municipality shall submit the proposed financial plan
to the board for the board's review and approval.
(e) Not more than 60 days after submission of
the proposed financial plan or recommendations for modification of an approved
financial plan to the board, the board shall determine whether the proposed
plan or the proposed plan modification is complete and complies with all
necessary statutes and regulations.
1. If the
board determines that the proposed plan, or the proposed plan modification, is
complete and complies with all necessary statutes and regulations, the board
shall, by resolution, approve the financial plan or the financial plan
modification.
2. If the board
determines that the proposed plan or proposed plan modification is incomplete;
that the budget plan therein fails to contain projections of revenues and
expenditures that are based on reasonable and appropriate assumptions and
methods of estimation; that the proposed plan or proposed plan modification
fails to demonstrate that the operations of the municipality will be conducted
within the cash resources available to the municipality according to reasonable
and appropriate assumptions and methods of estimation; or that the proposed
plan or proposed plan modification fails to comply with the provisions of these
rules, the board shall, by resolution, disapprove the plan.
(f) In the event that the
governing body of the municipality either fails to submit a financial plan as
required or fails to submit a financial plan that receives the approval of the
board, the board shall, by resolution, formulate and adopt a financial plan to
be effective until the governing body of the municipality submits a financial
plan that is approved by the board.
(g) Once adopted by the board, the provisions
of the financial plan shall be binding on the municipality.
(h) The municipality shall submit a copy of
the adopted financial plan to the Local Finance Board.
