Current through Register Vol. 56, No. 18, September 16, 2024
(a) Every fire
district shall prepare an annual budget for each fiscal year in which an
expenditure of money is expected. Each budget shall include an operations
section, capital budget and program section, and supplemental schedule and
necessary certifications relating thereto. The Board of Commissioners shall
introduce its annual budget by resolution, passed by not less than a majority
of the full membership.
(b) The
budget shall set forth all anticipated revenues and other financing sources of
the district, including the following, where applicable:
1. Fund balance utilized;
2. Miscellaneous anticipated revenues, which
shall not be such amounts as may reasonably be expected to be realized in cash
during the budget year from known and regular sources, or from sources
reasonably capable of anticipating, including amounts expected to be received
from municipalities appropriating money for district purposes, but not
including revenues from taxes to be levied to support the district
budget;
3. Amount to be raised by
taxation to support the district budget, which shall be the amount to be
certified to the assessor of the municipality to be assessed against the
taxable property in the district. Such amount shall be equal to the amount of
the total appropriations set forth in the budget minus the total amount of
surplus (fund balance) and miscellaneous revenues set forth in the
budget;
4. Sale of
assets;
5. Interest on investments
and deposits;
6. Operating grant
revenues;
7. Revenues offset with
appropriations;
8. Other revenue;
and
9. Any other specialized
revenues that the Director may determine necessary based on circumstances
affecting an individual fire district, so that revenues of the fire district
are properly disclosed to the public.
(c) The budget shall set forth all of the
appropriations of the district, including the following, where applicable:
1. For operating appropriations, the
following shall be included, with personnel costs broken out, where applicable:
i. Administration;
ii. Operation and maintenance of each office
or agency of the district;
iii.
Reimbursement to employees of a fire district and any volunteer firemen having
membership in a volunteer fire company within the fire district for expenses
and losses actually incurred in the performance of their duties;
iv. Each paid position of a fire district,
along with the compensation to be paid therefor;
v. Appropriations offset with
revenue;
vi. Appropriations for
duly incorporated first aid/rescue squad;
vii. Emergency appropriations and deferred
charges; and
viii. Amounts
necessary to fund any deficit, or anticipated deficit, from the preceding
budget year;
2. Capital
appropriations, which shall include the following:
i. Amounts necessary in the current budget
year to fund or meet obligations incurred for capital purposes, including
principal and interest on bonds, notes, capital leases, and intergovernmental
loans, itemized according to purpose. For fire trucks, the term "capital lease"
shall encompass not only lease-purchase agreements but also operational
leases;
ii. For capital
appropriations not paid for through borrowing:
(1) The date of the special meeting conducted
pursuant to
N.J.S.A.
40A:14-84;
(2) An affidavit of compliance with
N.J.S.A.
40A:14-84adhering to the content and format
set forth at N.J.A.C. 5:31-2Appendix C; and
(3) A certification of special meeting
results adhering to the content and format set forth at N.J.A.C. 5:31-2Appendix
D;
iii. For debt
service, which shall include bond issuances, lease-purchase agreements, and the
creation of any other debt or liability for permitted purposes, as applicable:
(1) The date of voter approval and
percentages;
(2) The date of Local
Finance Board approval; and
(3) A
certification of special elections results adhering to the content and format
set forth at N.J.A.C. 5:31-2Appendix E;
iv. Amounts reserved for future capital
outlays;
v. Appropriations offset
with grants;
vi. Appropriations
offset with restricted fund balance; and
vii. Appropriations offset with unrestricted
fund balance;
3. Length
of service award programs, once approved by referendum pursuant to
P.L.
1997, c. 388;
and
4. Total appropriations shall
be the sum of (c)1 through 3 above.
(d) The total budget appropriations shall not
exceed total anticipated revenues reasonably expected to be realized.
(e) Where the intended purpose of restricted
fund balance is no longer essential, the board of fire commissioners may
authorize a referendum seeking voter approval to release the restricted fund
balance to be appropriated for other unrestricted purposes that provide and
maintain essential services.
1. If the fund
balance was restricted by a ballot question voted upon pursuant to
N.J.S.A.
40A:14-85, the fund balance shall only be
unrestricted by a referendum to be held on the third Saturday in
February.
2. If the fund balance
was restricted by voter approval at a special meeting held by a fire district
that holds its annual election for board of fire commissioners on the third
Saturday in February, the fund balance shall only be unrestricted with voter
approval during a special meeting held pursuant to N.J.S.A. 40A:14-84.
3. If the fund balance was
restricted by voter approval at a special meeting held by a fire district that
holds its annual election for the board of fire commissioners in conjunction
with the November general election, the fund balance shall only be unrestricted
by a two-thirds vote of the full membership of the board of fire commissioners
during a special meeting held pursuant to
N.J.S.A.
40A:14-84.
(f) If a levy cap referendum is to be held
pursuant to
N.J.S.A.
40A:4-45.45, or a referendum to release
restricted fund balance, an enabling resolution must be adopted by the majority
of the full membership of the board of fire commissioners.
(g) Any resolution authorizing a levy cap
referendum shall adhere to the content and format set forth in N.J.A.C.
5:31-2Appendix A. Any resolution authorizing a referendum on the release of
restricted fund balance shall adhere to the content and format set forth at
N.J.A.C. 5:31-2 Appendix B.
(h) If
either a levy cap or restricted fund balance referendum is planned at the time
of introduction of the budget, the resolution shall be adopted prior to the
budget introduction, with a certified copy of the resolution being filed with
the Director alongside the introduced budget. If the budget is amended prior to
adoption, and the amendment either requires a levy cap or restricted fund
balance referendum to take place or would change the question or questions to
be brought before the voters, the resolution shall be adopted or amended, as
appropriate, and filed with the Director.
(i) The district shall transmit two certified
copies of its budget to the Director at least 60 days prior to the third
Saturday in February, together with all relevant information as prescribed in
this chapter, or as otherwise required by the Director. Upon implementation of
the Financial Automation Submission Tracking (FAST) system, or such other
automated system as may be implemented by the Director, the district shall
electronically submit the certified budget to the Director at least 60 days
prior to the third Saturday in February, together with all relevant information
and documentation as prescribed in this chapter, or as otherwise required by
the Director. The Director shall have the discretion to require the submission
of one or more certified paper copies of the budget, together with all relevant
information and documentation as prescribed in this section or as otherwise may
be required by the Director, parallel to electronic submission.
(j) The following information and
documentation shall accompany the budget:
1.
A computation of the estimated fund balance or deficit from the preceding
fiscal year, along with a reconciliation of fund balance for the current
year;
2. A schedule of debt service
(principal and interest) for the budget year and next succeeding five
years;
3. The levy cap calculation
pursuant to
N.J.S.A.
40A:4-45.45;
4. If a levy cap referendum is to be held
pursuant to
N.J.S.A.
40A:4-45.45 and
40A:4-45.46 and /or a referendum
is to be held on the release of restricted fund balance:
i. A listing of the specific amounts and
budget line items for which funds approved at referendum would be
utilized;
ii. A certified copy of
the enabling resolution or resolutions adopted by the board of fire
commissioners authorizing a referendum; and
iii. The proposed referendum question or
questions;
5.
Compensation paid by the fire district to commissioners and officers. The
schedule shall, at a minimum, provide individual detail on compensation and
hours worked per week;
6. A cost
analysis of employee health benefits comparing the prior and current years,
including, but not limited to:
i. The number
of covered members;
ii. Total
annual cost;
iii. Annual cost
broken down by active employees, retirees, and governing body members;
and
iv. Cost sharing by benefit
recipients;
7. The
accumulated liability for compensated absences that shall, at a minimum,
provide gross days of accumulated absences at the beginning of the current
year, dollar value of compensated absence liability, and the legal basis for
the benefit;
8. A listing of all
shared service agreements to which the fire district is a party;
9. Any contract for the sale of assets;
and
10. Such other information as
the Director may require in order to approve fire district budgets pursuant to
N.J.S.A.
40A:5A-11 or otherwise comply with the
user-friendly budget provisions of N.J.S.A. 40A:5-48 relevant to fire
districts.
(k) Every
fire district budget shall contain a completed questionnaire with answers for
the following questions:
1. Whether the fire
district has any amounts receivable from current or former commissioners,
officers, key employees, or highest compensated employees and, if so, a list of
said individuals, their positions, the amount receivable, and a description of
the amount due to the authority;
2.
Whether the fire district was party to a business transaction with a current or
former commissioner, officer, or employee. The fire district shall also
disclose whether it was a party to any business transactions with an entity in
which any such individuals, or a family member thereof, was an officer, direct
owner, or indirect owner. If the answer is "yes," a description of the
transactions shall be provided, along with the name of the individual(s), the
name of the entity and its relationship to the individual(s), if applicable,
the amount paid, and whether the transaction was subject to a competitive
procurement process;
3. A detailed
list of any of the following expenses paid by the fire district for fire
district commissioners, key employees, highest compensated employees, and
independent contractors, including:
i.
Travel;
ii. Tax indemnification and
"gross-up" payments;
iii.
Discretionary spending;
iv. Housing
and vehicle allowances;
v. Payments
for business use of personal residence;
vi. Health or social club dues, including
initiation fees; and
vii. Personal
services including, but not limited to, maids, chefs, and chauffeurs;
4. An explanation regarding any
payments to employees or commissioners for discretionary bonuses, severance, or
termination;
5. A list of the fire
district's vehicles, including make, model, and year, indicating to whom the
vehicles are assigned and their positions;
6. If the fire district contracts with
another entity to provide fire protection or emergency medical services within
the district, whether there is a written agreement detailing the services the
entity shall provide along with the amount to be paid by the fire district and,
if there is no written agreement, the reason for not having a written agreement
in place, the services provided, and the basis for the amount paid by the
district;
7. Whether the fire
district has a Length of Awards Service Program (LOSAP) plan and, if so:
i. The year in which the LOSAP was
implemented;
ii. The total number
of volunteers presently eligible to participate;
iii. The total number of vested
volunteers;
iv. Whether the annual
contribution for each vested member is fixed or based on an automatic
increase;
v. The total amount
budgeted for LOSAP for the current year; and
vi. Whether the fire district has required
the plan contractor to submit its annual financial statement to the Director of
the Division of Local Government Services pursuant to
N.J.A.C.
5:30-14.49;
8. Such other information as the Director may
require in order to approve fire district budgets pursuant to
N.J.S.A.
40A:5A-11 or otherwise comply with the
user-friendly budget provisions of N.J.S.A. 40A:5-48 relevant to fire
districts.
(l) The
budget and all relevant information shall be reviewed by the Director. If the
Director finds that all requirements of law and the rules of the Local Finance
Board have been met, the Director shall, within 45 days of his or her receipt
of the budget, approve it; otherwise the Director shall, within that time,
refuse to approve it. No district budget shall be adopted by the commissioners
until the Director shall have approved the same, provided, however, that if the
Director has not notified the commissioners of his or her approval or refusal
to approve the budget and the conditions on which approval will be granted at
the end of the 45-day period, the budget will be deemed to have been approved.
Budget adoption shall be by a resolution passed by a majority of the full
membership of the commission.
1. Two certified
copies of the budget, as adopted, shall be transmitted to the Director within
three days after adoption. Upon implementation of the FAST system, or such
other automated system as may be implemented by the Director, the district
shall electronically submit the certified adopted budget to the Director within
three days after adoption. The Director shall have the discretion to require
the submission of one or more certified paper copies of the adopted budget,
together with all relevant information and documentation as prescribed in this
section or as otherwise may be required by the Director, parallel to electronic
submission.
2. One certified copy
of the budget, as adopted, shall be transmitted by the fire district to the
municipality within three days after adoption.
(m) In the event that the adopted budget is
rejected at an annual election of the district held on the third Saturday in
February, the governing body of the municipality shall, within 30 days after
the annual election, prepare and adopt, by resolution passed by a majority vote
of the full membership of the governing body of the local unit, the budget for
the fiscal year of the district. The budget adopted by the governing body of
the local unit shall be in the same line item and detail as that rejected at
the annual election of the district held on the third Saturday in February.
1. Within three days after its adoption, the
municipality shall transmit two certified copies of the budget, as adopted by
the municipality, to the Director and one certified copy of the budget, as
adopted by the municipality, to the commissioners of the district. Upon
implementation of the FAST system, or such other automated system as may be
implemented by the Director, the certified budget as adopted by the local unit
shall be electronically submitted to the Director within three days after
adoption. The Director shall have the discretion to require the submission of
one or more certified paper copies of the adopted budget, together with all
relevant information and documentation as prescribed in this section or as
otherwise may be required by the Director, parallel to electronic
submission.
2. No district budget
adopted by a municipality shall become effective prior to approval by the
Director.
(n) When the
annual budget is approved at an annual election of the district held on the
third Saturday in February or, for fire districts holding their annual election
at the November general election, finally adopted by the board of fire
commissioners of a fire district, or finally adopted by the local unit, as the
case may be, it provides legal authorization for general fund spending. Adopted
budgetary accounts shall be formally integrated in the general fund
ledger.
(o) For fire districts
whose annual elections coincide with the November general election and whose
tax levies do not exceed the permissible property tax levy increase as
determined pursuant to
section
10 of
P.L.
2007, c. 62
(N.J.S.A. 40A:4-45.45), the
Director shall certify to the tax assessor of the municipality or
municipalities in which the fire district is located the amount to be raised by
taxation to support the year's fire district budget upon receipt of the budget
adopted by the board of fire commissioners.
(p) For fire districts whose annual elections
are held on the third Saturday in February, the board of commissioners shall
certify to the Director no later than 10 days after the passage of the budget
referendum, unless the Director grants an extension:
1. The amount to be raised by taxation,
together with the tax rate per 100 dollars of assessed value, pursuant to
N.J.S.A.
54:4-35, and the total "Yes" votes and total
"No" votes;
2. The amount of any
capital project subject to referendum and the total "Yes" votes and total "No"
votes;
3. The results of any levy
cap referendum held pursuant to
N.J.S.A.
40A:4-45.45;
4. The results of any referendum to release
restricted fund balance; and
5. The
appropriated LOSAP amount subject to referendum and the total "Yes" votes and
total "No" votes.
(q)
Upon receipt of the certifications required at (p) above, along with the
election results and a copy of the ballot, the Director shall certify to the
tax assessor of the municipality or municipalities in which the fire district
is located the amount to be raised by taxation to support the year's fire
district budget. In the event a discrepancy exists between the levy in the
adopted budget and the levy approved by the voters on the ballot, the Division
will certify the lesser amount.
(r)
In the event the adopted budget is rejected by a majority of the legal voters
voting in the district at an annual election held on the third Saturday in
February, the board of commissioners shall certify to the Director its intent
to comply with
N.J.S.A.
40A:14-78.5(b) relating to
required actions by the governing body of the municipality in which the
district is located, including holding a hearing and the setting of a budget
for the district. In considering the budget, the governing body shall not
reduce any debt service amount or any appropriated LOSAP amount affirmatively
approved by the voters of the fire district.
(s) For fire districts whose annual elections
coincide with the date of the November general election, in the event a levy
cap or restricted fund balance referendum is held on the third Saturday in
February of the budget year in which the levy increase would apply, the results
of said referendum or referendums shall be submitted to the Director no later
than 10 days after the referendum takes place, unless the Director grants an
extension. Upon receipt of the referendum results, the Director shall certify
to the tax assessor of the municipality or municipalities in which the fire
district is located the amount to be raised by taxation to support the year's
fire district budget.
(t) Every
budget submitted to the Division shall include a budget message, which shall
consist of the following brief statements:
1.
The proposed year's budget compared to the current year's adopted budget, with
a description of the reason for the increase or decrease over 10 percent in any
line item along with any supporting documentation;
2. The impact the proposed year's budget will
have on the amount to be raised by taxation to support the district and upon
unrestricted or restricted fund balances, along with an explanation of the
projected impact on the following year's budget if unrestricted fund balance is
reduced by more than 10 percent;
3.
A statement explaining how the fire district is complying with the property tax
levy cap set forth at
N.J.S.A.
40A:4-45.45, accompanied by an explanation of
any reasons for exceeding the levy cap that identifies the appropriations
causing the fire district to exceed the levy cap;
4. Any service transfers to which the fire
district is a party. If the district is party to a service transfer, the
district shall set forth the levy cap base adjustment attributable to the
service transfer;
5. If the fire
district plans to adopt a resolution for the release of restricted fund
balance, an explanation of the reason and purposes for the
appropriation;
6. The impact the
proposed year's budget will have on capital appropriations, pursuant to
N.J.S.A.
40A:14-78.6.b;
7. Disclosure of any proposed amount provided
for any cash deficit of the preceding year, pursuant to
N.J.S.A.
40A:14-78.6.a, along with an explanation of
why the deficit occurred;
8.
Disclosure of any proposed amount to be provided to purchase first aid,
ambulance, rescue, or other emergency vehicle equipment, supplies, and
materials, pursuant to
N.J.S.A.
40A:14-85.1;
9. Disclosure of the total assessed valuation
of the district and the property tax rate per $ 100.00 of assessed value;
and
10. If the fire district is
providing for a first-year funding appropriation to establish a LOSAP,
disclosure of that action, the amount, and the fact that a public referendum is
required in order to ratify the LOSAP, but if defeated that the board of
commissioners will amend its budget to remove the first year's appropriation
and reduce the amount to be raised by taxation by a like amount.
(u) The budget submission shall
contain a certification of compliance by the fire district with the provisions
of N.J.S.A. 40A:14-70.2, pertaining
to the maintenance of an internet website or webpage.
(v) The secretary, or other official having
been duly designated with those responsibilities, shall attest to the actions
taken by the board of commissioners of a fire district with respect to
approval, adoption, and amendment of the budget, including the recorded vote of
the full membership thereof, by signature on all required certifications and
resolutions.
