N.J. Admin. Code § 5:30-13.5

Current through Register Vol. 56, No. 23, December 2, 2024

Section 5:30-13.5 - Financial plan preparation

(a) Within 45 days after the appointment of the majority of the members to the board, the mayor of the municipality, in consultation with the municipality's governing body, shall develop a proposed financial plan covering the three-year period beginning with the municipality's current fiscal year.

(b) The financial plan shall be composed of the following sections: a budgetary plan, an operations plan, an economic development plan and a capital improvement plan.

1. The budgetary plan shall be general in nature and shall include revenue and spending targets that must be met by the municipality through its annual budget. Spending targets may be set by budgetary line item. If, in the opinion of the board, the municipality does not have an adequate cash management plan or cash flow analysis, the board may require that the plan include such matters. The board shall ensure that the provisions of the plan comply with all applicable provisions of State law.

2. The operations plan shall identify and describe opportunities to reduce the costs of providing municipal services through general reductions of municipal expenditures; sales of surplus municipal assets; changes in staffing patterns; development of new sources of revenues; implementation of shared services with other government agencies; contracting of services to other providers; modifications in municipal service levels; improved or lower cost operating methods and practices; and any other measures which would serve to reduce the costs of providing municipal services as may be developed by the municipality or the board.

3. The capital improvement plan shall follow and reflect the capital improvement plan adopted pursuant to the "Local Budget Law," 40A:4-1 et seq., and any applicable rules adopted by the Local Finance Board.

4. The economic development plan shall identify and describe appropriate actions for the economic development of the municipality planned by all government agencies, non-profit and private sector organizations engaged in the economic development of the municipality.

(c) Within 30 days of developing the financial plan, the governing body shall conduct a public hearing on the proposed financial plan and may then adopt it in full or with amendments.

(d) Not later than 120 days after the date that the financial review board has its first meeting, the governing body of the municipality shall submit the proposed financial plan to the board for the board's review and approval.

(e) Not more than 60 days after submission of the proposed financial plan or recommendations for modification of an approved financial plan to the board, the board shall determine whether the proposed plan or the proposed plan modification is complete and complies with all necessary statutes and regulations.

1. If the board determines that the proposed plan, or the proposed plan modification, is complete and complies with all necessary statutes and regulations, the board shall, by resolution, approve the financial plan or the financial plan modification.

2. If the board determines that the proposed plan or proposed plan modification is incomplete; that the budget plan therein fails to contain projections of revenues and expenditures that are based on reasonable and appropriate assumptions and methods of estimation; that the proposed plan or proposed plan modification fails to demonstrate that the operations of the municipality will be conducted within the cash resources available to the municipality according to reasonable and appropriate assumptions and methods of estimation; or that the proposed plan or proposed plan modification fails to comply with the provisions of these rules, the board shall, by resolution, disapprove the plan.

(f) In the event that the governing body of the municipality either fails to submit a financial plan as required or fails to submit a financial plan that receives the approval of the board, the board shall, by resolution, formulate and adopt a financial plan to be effective until the governing body of the municipality submits a financial plan that is approved by the board.

(g) Once adopted by the board, the provisions of the financial plan shall be binding on the municipality.

(h) The municipality shall submit a copy of the adopted financial plan to the Local Finance Board.

N.J. Admin. Code § 5:30-13.5

Amended by R.2003 d.404, effective 10/20/2003.
See: 35 New Jersey Register 2427(a), 35 New Jersey Register 4862(b).
Substituted references to the municipality for references to the City throughout.