N.J. Admin. Code § 5:31-2.2

Current through Register Vol. 56, No. 11, June 3, 2024

Section 5:31-2.2 - Capital budget and capital program for authorities other than fire districts

(a) Every authority shall prepare and adopt a capital budget, in conjunction with its annual budget, for any year in which it proposes to undertake a capital project.

(b) No authority shall adopt a security agreement unless its provisions are in agreement with a previously adopted capital budget, temporary capital budget or amended capital budget.

(c) Every authority that adopts a capital budget shall also adopt a capital program or modify or add a year to an existing capital program. The capital program shall be submitted to the Director with the capital budget. In any budget year when an authority's governing body decides not to adopt a capital budget or program, the Secretary shall certify to such intent and give the reasons therefor.

(d) Any capital budget or capital program that is to be adopted shall:

1. Be prepared and assembled by the officer(s) responsible for preparing the annual budget;

2. Be adopted by the affirmative vote of a majority of the full membership of the governing body;

3. Be treated as part of the official annual budget;

4. The capital budget shall include by title all projects scheduled for startup in the current budget year, the amounts appropriated and the anticipated financing by source and amount. The capital program period shall include the budget year and five succeeding years;

(e) The Director shall, as part of his or her review of each authority annual budget, determine whether a capital budget and program are required, and if so, whether it has been included in proper form. The review shall not extend to any determination as to the sufficiency or wisdom of its content. Failure to properly submit the capital budget and program may delay approval of the entire annual budget.

(f) Except for the cost of preliminary plans, specifications and estimates, no authority shall make appropriations, authorize expenditures or adopt a security agreement for a capital project unless its provisions are in agreement with a previously adopted capital budget, temporary capital budget or amended capital budget.

(g) Every capital budget and capital program submitted to the Division shall include a budget message, which shall consist of brief statements addressing the following matters:

1. Whether prior consultation and review by affected agencies, governmental entities and jurisdictions served by the authority has been obtained;

2. Whether a specific capital improvement plan or report has been developed with respect to each capital project or project financing with full life cycle costs having been calculated for same, and whether each capital project or project financing is consistent with appropriate elements of master plans or other plans in the jurisdiction(s) served by the authority;

3. Whether a long term infrastructure needs assessment has been prepared;

4. Whether any proposed capital improvement plan has a State Plan designated center, including goals and objectives thereof;

5. The projected impact of proposed capital projects, impact on current and future rates, fees, service charges, or user charges, if the proposed capital improvement plan is undertaken; and

6. For housing authorities only, whether the project has been reviewed and approved by the U.S. Department of Housing and Urban Development.

(h) No authority shall construe a capital budget or program to be an authorization to raise or expend funds. Specific authorization to expend funds for capital improvement purposes is subject to the enabling legislation that created the authority.

(i) Amendments to the capital budget or program are permitted at any time prior to budget adoption and shall be effectuated by resolution after budget adoption, at any time during the fiscal year, to reflect any:

1. Decrease in specific capital project costs or elimination of previously identified projects;

2. Deferral of capital projects funding to future years; or

3. Increase in capital project costs or additional projects with the identification and timing of anticipated funding sources.

(j) All amendments to a capital budget or program shall be approved and adopted by the governing body, at an open public meeting, setting forth the reasons therefor, and passed by not less than a majority of the full membership thereof. The certified budget, together with all relevant information, shall be transmitted to the Division for Director approval in such a manner as may be required by the Director, within 10 days after adoption. One certified copy of the amendment shall be transmitted to each affected local unit within 10 days after adoption.

N.J. Admin. Code § 5:31-2.2

Amended by R.1985 d.511, effective 10/21/1985.
See: 17 New Jersey Register 1823(a), 17 New Jersey Register 2537(a).
Old text deleted in (f) and new text substituted.

Amended by 53 N.J.R. 50(a), effective 1/4/2021