N.J. Admin. Code § 5:31-2.3

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

Section 5:31-2.3 - Budget introduction and adoption for authorities other than fire districts

(a) This rule establishes procedures applicable to the introduction and adoption of budgets for authorities other than fire districts.

(b) The governing body shall introduce and approve its annual budget by resolution, passed by not less than a majority of the full membership.

(c) The budget shall set forth all the anticipated revenues of the authority, including the following, where applicable in comparison to the prior year:

1. Unrestricted net position that shall not exceed the amount of working capital reduced by unrestricted assets not ordinarily convertible into cash; or the estimated year-end balance of unrestricted net position, whichever is the lower;

2. Rents, fees, and other charges that are reasonably expected to be realized from users of facilities and/or services provided by the authority;

3. Amounts expected to be received from local unit or units pursuant to financing agreements with respect to use, services, or provisions of a project, facility, or public improvement of an authority or payments for debt service therefor;

4. Interest on investments and deposits (investments, certificates of deposit, savings accounts, etc.) held for operating purposes as opposed to other purposes;

5. Other income, consisting of amounts reasonably expected to be collected from regular and recurring sources;

6. Amounts reasonably expected to be collected from unrestricted grants that may be used to finance budget appropriations; and

7. Total anticipated revenues.

(d) The budget shall set forth all of the appropriations of the authority including the following, where applicable for the current and prior year:

1. Administrative and operating expenses, including personnel salary and wage and fringe benefits, as well as maintenance and repair of facilities and improvements;

2. Provision for bond principal maturing during the budget year;

3. Provision for note principal maturing during the budget year;

4. Provision for future plant reconstruction and replacement, consisting of amounts determined by management to provide a reserve fund for future fund for future plant reconstruction and replacement;

5. Contribution to the Public Employees' Retirement System;

6. Contribution to the Social Security System;

7. Contribution to the Unemployment Compensation Insurance fund;

8. Addition to the Renewal and Replacement and Operations and Maintenance Reserves;

9. Provision for interest accruing during the fiscal year on debt issued and outstanding;

10. Provision for deficit of the preceding fiscal year and anticipated deficit of the current fiscal year;

11. Provision for amortization of intangible assets;

12. Provision for uncollectible accounts;

13. Capital outlay for property, plant, and equipment acquisitions expected to be paid from the operating budget;

14. Unrestricted net position utilized; and

15. Total appropriations.

(e) The authority shall transmit three certified copies of the budget to the Director at least 60 days prior to the end of the current fiscal year, together with all relevant information and documentation as prescribed in this section or as otherwise may be 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 authority shall electronically submit the certified budget to the Director at least 60 days prior to the end of the current fiscal year, together with all relevant information and documentation as prescribed in this section or as otherwise may be 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.

(f) The following information and documentation shall accompany the budget:

1. A computation of the projected balance of unrestricted net position;

2. The schedule of rates, fees, and charges in effect or proposed and computation of revenue reasonably expected to be realized;

3. A computation of the budgeted provision for doubtful accounts, including the method utilized and the percentage to billings, compared with the most recent moving average of uncollectible accounts to billings.

4. A computation of the amount of the budgeted provision for future plant reconstruction or replacement.

5. Summary of applicable provisions of service agreements and computation of amount due from each local unit and total amount due under such provisions;

6. Computation or explanation of amounts expected to be realized from other sources accompanied by copies of grant agreements or other applicable agreements, if any;

7. Schedule of debt service (principal and interest) for the prior adopted budget year, current proposed budget year, and at least the next succeeding five years; and

8. Computation of an anticipated deficit or net income for the current year.

(g) No authority budget shall be finally adopted until the Director shall have approved the same. Final budget adoption shall be by resolution passed by a majority of the full membership of the authority governing body.

(h) The budget shall be adopted not later than the beginning of the authority's fiscal year, except that the governing body may adopt or amend the budget at any time after the Director shall have approved the same.

1. Two certified copies of the budget as adopted shall be transmitted by the authority 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 authority shall electronically submit the certified budget, as adopted, 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 authority to each local unit within three days after adoption.

(i) Upon adoption, the budget shall constitute an appropriation for the purposes stated therein for the purposes of the authority.

N.J. Admin. Code § 5:31-2.3

Amended by R.1985 d.511, effective 10/21/1985.
See: 17 New Jersey Register 1823(a), 17 New Jersey Register 2537(a).
Substantially amended.

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