CMFO - Local Budget Law

CMFO - Local Budget Law A Governing Body may increase it's appropriations cap to ________ by passing a _______________________________ - ✔✔c. 3.5% by passing a cost of living adjustment ordinance The flexible chart o ...

CMFO - Local Budget Law A Governing Body may increase it's appropriations cap to ________ by passing a _______________________________ - ✔✔c. 3.5% by passing a cost of living adjustment ordinance The flexible chart of accounts is a coding system which categorizes: a. Debt service payments b. Capital Projects c. Budget appropriations and revenues d. Utility Rates - ✔✔c. Budget appropriations and revenues The reserve for uncollected taxes is: a. a line item for tax credits for seniors & veterans b. The tax rate of the municipality c. An appropriation required by statute to cover the cash flow requirements of the school, county and municipal obligations d. An appropriation for tax liens - ✔✔c. An appropriation required by statute to cover the cash flow requirements of the school, county and municipal obligations At the end of the second budget year, any remaining uncommitted appropriation reserves are: a. Transferred to accounts payable b. Added to the line item account c. Lapsed and returned to fund balance through journal entries d. Credited to the reserve for encumbrances - ✔✔c. Lapsed and returned to fund balance through journal entries The difference between the amount of appropriations for the budget year and the and the anticipated revenues is the: - ✔✔c. Amount to be raised for taxation The Local Budget Law is referred to as NJSA: a. 40A:2-1 et seq b. 40A:4-1 et seq c. 40A:11-1 et seq d. 40A:12-1 et seq - ✔✔b. 40A:4-1 et seq For a given budget year, budget transfers between appropriation reserves are permitted: a. During the last two months of the budget year b. During the first three months of the budget year c. Immediately after adoption of the budget d. As soon as the overexpenditure is realized - ✔✔b. During the first three months of the budget year A municipal budget constitutes two functions of authority which are: a. The improvements of roads and other capital projects and property tax credits b. The establishment of appropriations necessary to meet expenditures and the authority to tax to provide revenue c. The rates for sewer and water utilities and payment of debt service d. The payment of salaries and wages and the purchase of capital items - ✔✔b. The establishment of appropriations necessary to meet expenditures and the authority to tax to provide revenue Resolutions authorizing the transfer of appropriations require what vote of the governing body: - ✔✔d. 2/3 of the full membership The four major categories of revenues anticipated in a municipal budget are: - ✔✔Surplus, miscellaneous revenue, taxes & delinquent taxes An over-expenditure of appropriation and a prior year bill are known as what type of appropriation in a municipal budget? - ✔✔Deferred Charge The certification of new construction or improvements by the local tax assessor, and the amount of local taxes that would have been generated would have what affect on the CAP base? - ✔✔It would increase the CAP Base What revenue is determined by subtracting from the total general appropriations the surplus anticipated, miscellaneous revenues and receipts from delinquent taxes? - ✔✔The amount to be raised by taxation Unless action is taken by the governing body, what is the maximum increase for appropriations subject to the CAP? - ✔✔2.5% Additions to the budget after adoption are generally referred to as: - ✔✔Chapter 159 amendments By Statute, the temporary budget must be adopted in calendar year towns between January 1st and: - ✔✔January 31st Miscellaneous Revenues may: a. be anticipated in the budget up to the amount received in cash in the preceding year b. be anticipated in the budget in amount greater than was received in cash in the preceding year c. be anticipated in the budget in an amount greater than was received in cash in the preceding year when supported by documentation d. a or c - ✔✔d. a or c The official budget required to be adopted by local governments in NJ is a: a. Zero based budget b. planning-programming budget c. Line Item budget d. Long range budget - ✔✔c. Line Item budget The lower the estimated tax collection rate the: a. Lower the municipal purpose tax rate b. Higher the reserve for tax appeals c. Higher the RUT d. Lower the surplus - ✔✔c. Higher the RUT A municipality with a population of 7,350 must adopt a capital budget program for _________ years - ✔✔3 years Regulations concerning fiscal controls are established in: - ✔✔NJAC 5:30 et seq Current Fund appropriations for accumulated absencea liabilities must be: a. deposited in a dedicated trust fund b. cannot be used for any other purpose unless first approved by the local finance board c. must not exceed the value of the total accumulated absences, less any amount reserved from prior years appropriations and held in the trust fund d. all of the above - ✔✔d. all of the above In which budget must a deficit in a muncipal utility be raised? - ✔✔Current Fund Tax maps, master plans, codifications and revaluations may be financed with: - ✔✔Special Emergency Notes The debt limit of a municipality may not exceed what percentage of the prior three years equalized assessed real property valuations - ✔✔3.5% Cash received from property owners for local improvement assessments must first be pledged to: - ✔✔Assessment lien bonds and notes Municipalities must adopt a(n) ______________ and apply to the ________________ to convert to SFY - ✔✔Ordinance/ Local Finance Board Levy & Appropriation Limit for transition year from SFY to Calendar Year - ✔✔Levy & appropriations must be within .95% - 1.05% of the prior year Vote to introduce, amend and adopt the budget - ✔✔Majority of the full membership Procedure (steps) to adopt budget - ✔✔Introduction (approval) Public Advertising Public Hearing Amendments & hearings Adoption Statutory deadline to introduce (approve) budget - ✔✔February 10th August 10th SFY How long after approval (adoption) must a certified copy of the budget be sent to the director? - ✔✔3 days How many days between the budget advertisement and the public hearing? - ✔✔At least 10 days How many days between the introduction (approval) and the public hearing? - ✔✔At least 28 days When is an advertisement and public hearing required for a budget amendment? - ✔✔Adds a new appropriation of 1% or more of the total budget Increases the amount to be raised by taxation by 5% or more (unless for a temporary emergency appropriation) Increases or decreases and item of appropriation by 10% or more When must the advertisement for public hearing on budget amendments be published? - ✔✔At least three days before the hearing T/F - Amendments required by the director may be made prior to the public hearing on the budget without advertisement - ✔✔True T/F - All amendments of the budget must be read in full and filed with the director - ✔✔True Vote to adopt budget - ✔✔Majority of full membership Statutory deadline to adopt budget - ✔✔March 20 September 20 (SFY) The budget provides the authority to: - ✔✔Tax & Spend Who must file the certified budget to the County Tax Board after adoption? In how many days? - ✔✔Clerk 15 days How is the temporary budget calculated? - ✔✔26.25% of PY budget excluding debt service, Capital & Public assistance Temporary budget for debt service must be adopted when? - ✔✔During the last 10 days of the prior fiscal year Emergency temporary appropriations adopted after the introduction (approval) of the budget must be: - ✔✔Included in the budget by amendment Vote for Emergency Temporary Appropriations - ✔✔2/3 Full membership T/F - A copy of resolutions authorizing emergency temporary appropriations must be filed with the director - ✔✔True In the current section of accounts, shall consist of the excess of quick assets such as cash, investments, state or public aid receivable and deferred charges over legal and demand libailities - what does this describe? - ✔✔Surplus Revenue amounts that may be reasonably expected to be realized in cash during the fiscal year from known and regular sources or from sources reasonably capable of anticipation - what does this describe? - ✔✔Misc. Revenues Anticipated How much can be anticipated in miscellaneous revenues - ✔✔No more than realized in cash from the same source the prior year When must the sale of land be contracted in order to anticipate the revenue in the budget? - ✔✔Prior to adoption The difference between the total of all general municipal budget appropriations, including chapter 6 school debt service and such deferred charges and statutory expenditures for chapter 6 school as are required to be raised in the municipal budget, less the total of anticipated revenues - what does this describe - ✔✔Amount to be raised by taxation Maximum surplus that can be anticipated from a utility regulated by the Board of Public Utilities - ✔✔5% of the annual costs of operation of the utility Dedicated revenues stated in the budget shall be classified according to their respective sources and shall be stated in a seperate section of the budget, together with the appropriations to the purpose to which such dedicated revenues are applicable. The total of anticipated revenues must equal the total of appropriations - What does this describe? - ✔✔Trust Fund Accounts When and how must a cash deficit be raised - ✔✔In full in the succeeding years budget as a deferred charge Exceptions to the budget CAP (5) - ✔✔Debt Service Capital Expenditures Free Public Library RUT Grants Vote for an emergency appropriation - ✔✔2/3 of full membership Surplus Anticipated must not exceed __________________________ - ✔✔The amount of surplus held in cash or quick access Taxes equal: - ✔✔Total appropriation less all other revenues Columns required on budget document - ✔✔Current Year Amount Prior Year Amount Prior Year Emergencies Prior Year as modified by transfers Amounts expended Amounts reserved Minimum requirements for utility budget - ✔✔Operations, Debt Service, Deferred Charges & Statutory Expenditures An amount which is not in excess of the percentage of taxes levied and payable the prior year which was received in cash by the last day of the prior year - What does this describe? - ✔✔RUT The governing body may by resolution adopted by ___________, allow for the RUT to be calculated using the _________________. This must be done ____________________ - ✔✔Majority of the full membership average percentages of taxes collected for the last three years prior to introduction The governing body may by resolution adopted by ___________, reduce the certified tax levy of the prior year by the amount of tax levy adjustments resulting from _________________. This must be done ____________________ - ✔✔Majority of the full membership tax appeals prior to introduction Appropriations CAP - ✔✔2.5% or the cost of living adjustment, whichever is less unless a COLA ordinance is adopted What is necessary to increase the levy by more than 2%? - ✔✔A referendum approved by over 50% of the people voting Vote for emergency appropritaion - ✔✔2/3 of full membership A copy of Emergency Appropriation Resolutions must be: - ✔✔Filed with the Director If an emergency appropriation exceeds _______ of the total current and utility operating appropritionas, the governing body must __________________________ by resolution adopted by ______________. A hearing may be held if requested by the taxpayers and the maximum amount of the emergency will be set by the ___________________ - ✔✔3% Petition the Director 2/3 of the full membership Director Vote to approve Emergency notes - ✔✔Majority of full membership Allowable expenses for Special Emergency Appropritions - ✔✔Tax Maps Revals Revision/Codification of Ordinances Drainage Maps for flood control A copy of all resolutions relating to special emergencies must be: - ✔✔Filed with the director Vote for Special Emergency Notes - ✔✔2/3 of full governing body The governing body of a _______________ municipality may by resolution adopted by ______________ fund any __________________ from surplus or borrowing and at least _______________ shall be paid each year - ✔✔Distressed 2/3 full membership judgment from a court order 1/5 Vote for budget transfers - ✔✔2/3 full membership Maximum amt for Tax Anticipated Notes - ✔✔Shall not exceed the gross borowing power )30% of the tax levy of the prior year + 30% of misc. revenues realized in cash the PY - excess of the first over the 2nd) Maturity requirement for TANs - ✔✔120 days after the beginning of the next year Interest rate for TANs - ✔✔Cannot exceed 6% per annum Change in text or title statute - ✔✔40A:4-85 Special Items of Revenue & Appropriations statute - ✔✔40A: 4-87 (Chapter 159)