N.J. Admin. Code § 5:30-7.6

Current through Register Vol. 57, No. 1, January 6, 2025

Section 5:30-7.6 - Completion of local examination

(a) Prior to adoption of the budget, the governing body and the chief financial officer shall examine the budget for the following:

1. That with reference to the following items, the amounts have been calculated pursuant to law and appropriated as such in the budget:

i. Payment of interest and debt redemption charges;

ii. Deferred charges and statutory expenditures;

iii. Cash deficit of preceding year;

iv. Reserve for uncollected taxes;

v. Other reserves and non-disbursement items; and

vi. Any inclusions of amounts required for school purposes;

2. That the provisions relating to limitation on increases of appropriations at N.J.S.A. 40A:4-45.2 and appropriations for exceptions to limits on appropriations found at N.J.S.A. 40A:4-45.3 et seq., are fully met;

3. That the budget is in such form, arrangement and content as required by the Local Budget Law and N.J.A.C. 5:30-4 and 5;

4. That, pursuant to the Local Budget Law:

i. All estimates of revenue are reasonable, accurate and correctly stated;

ii. Items of appropriation are properly set forth; and

iii. By itemization, form, arrangement, and content, the budget will permit the exercise of the comptroller function within the municipality;

5. That the budget and associated amendments have been introduced, publicly advertised, and adopted in accordance with the relevant provisions of the Local Budget Law, except that failure to meet the deadlines of N.J.S.A. 40A:4-5 shall not prevent such certification; and

6. That all other applicable statutory requirements have been fulfilled.

(b) If the chief financial officer and governing body find that the budget meets the requirements of (a) above, they shall execute the local examination certificate. The chief financial officer shall execute the local examination certificate by signature. The governing body shall execute the certification by passage of a resolution by a not less than a majority of the full membership of the governing body. No locally examined budget shall be adopted unless the local examination certificate has been approved by the chief financial officer and governing body.

(c) A local examination certificate signatory who has reason to believe that any part(s) of the budget may not meet all the requirements of local examination may execute a local examination certificate and take exception to any part(s) of the budget. Such exceptions shall be specific and itemized on the form. The form shall be forwarded to the Director immediately upon execution, and the budget shall not be adopted until the Director makes a determination on the exceptions and directs the governing body to act as the Director determines to be appropriate.

(d) Failure of the governing body or the chief financial officer to execute the local examination certification shall result in the Director examining the budget in full. No budget adoption shall be valid unless all procedures of this subchapter have been followed in their entirety.

(e) Upon adoption of the budget, the municipal clerk shall include the local examination certification with the adopted budget sent to the Director pursuant to N.J.S.A. 40A:4-10.

(f) The local examination certificate shall be subject to acceptance by the Director. Acceptance shall be signified by the Director certifying the amount to be raised by taxation to the county board of taxation.

N.J. Admin. Code § 5:30-7.6