N.J. Stat. § 40A:4-44
The local government board shall adopt, and may from time to time amend, reasonable rules and regulations for capital budgets. Regulations may classify the type of budget required, according to the size of the local unit, the nature of the capital projects or any other reasonable basis of distinction, and shall require a statement of capital undertakings underway or projected for a period not greater than over the next ensuing 6 years as a general improvement program. The statement of capital undertakings for local unit that is required to prepare an asset management plan pursuant to section 7 of the "Water Quality Accountability Act," P.L. 2017, c. 133(C.58:31-7) or that holds a permit pursuant to the "Water Pollution Control Act," P.L. 1977, c.74 (C.58:10A-1 et seq.) shall identify the infrastructure improvements to be undertaken in accordance with the local unit's asset management plan or pursuant to any rule or regulation pertaining to asset management adopted by the Commissioner of Environmental Protection pursuant to P.L. 1977, c.74 (C.58:10A-1 et seq.), as applicable, and their cost.
After promulgation of regulations by the local government board, the governing body shall expend or incur obligations for capital purposes only after the adoption of a capital budget and in accordance with such budget except for the preliminary expense of plans, specifications and estimates.
N.J.S. § 40A:4-44