New Jersey Administrative Code
Title 5 - COMMUNITY AFFAIRS
Chapter 30 - LOCAL FINANCE BOARD
Subchapter 7 - MUNICIPAL BUDGET LOCAL EXAMINATION AND APPROVAL
Section 5:30-7.5 - Qualifying for budget local examination

Universal Citation: NJ Admin Code 5:30-7.5

Current through Register Vol. 56, No. 18, September 16, 2024

(a) If determined to be eligible for local examination, the chief financial officer shall determine if the municipality meets all of the following criteria:

1. The outstanding indebtedness of the previous fiscal year is not in excess of 3.5 percent;

2. All emergencies approved for the previous fiscal year did not exceed three percent of total appropriations;

3. The tax collection rate exceeded 90 percent;

4. Total deferred charges did not equal or exceed four percent of the total tax levy;

5. There were no "agreed upon procedural deficiencies" not performed by the registered municipal accountant and noted on Sheet 1a of the Annual Financial Statement;

6. There was no operating deficit for the previous fiscal year;

7. The municipality did not conduct an accelerated tax sale for less than three consecutive years;

8. The municipality did not conduct a tax levy sale the previous fiscal year and does not plan to conduct one in the current year;

9. The current year budget does not contain a budget cap waiver, per 40A:4-45.3(ee); and

10. The municipality will not apply for Extraordinary Municipal Aid (52:27D-118.3 5) in the current year.

(b) The chief financial officer shall record the determination on a form, prepared by the Director as part of the annual financial statement, and provide a copy of the form to the governing body. Prior to introduction of the budget, if the governing body chooses not to locally examine the budget, it shall pass a resolution to that effect and immediately forward it to the Director.

(c) If all of the criteria in (a) above are met, and the governing body does not elect to have the Director examine the budget, the municipality shall locally examine its budget.

(d) If the municipality fails to meet any of the criteria in (a) above, the Director shall examine the budget for that year.

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