Local Finance Notice 2024-09 General Ledger & Encumbrance Accounting Systems: Local Finance Board Regulatory Update The Local Finance Board made updated to N.J.A.C 5:30-5.7 as part of its readoption of N.J.A.C 5:30. It establishes required procedures for proper maintenance of a general ledger accounting system. This is applicable to all local units, including authorities, fire districts, and joint meetings/regional service agencies. Now all local units are required to do the following: Maintain a general ledger for all funds of a local unit. Maintain required books of original entry in a ..read more

Version 2.1 of the Local Public Contracts Law In April of 2024 the Division of Local Government Services and the Rutgers Center for Government Services provided an update to the Local Public Contracts Law. Highlights of Version 2.1 of Local Public Contracts Law N.J.S.A.40A:11-51 is repealed. Expanded and updated public work regulation and reporting content, generally in Appendix E (p. 97-101) including online reporting of wages and “The “Wall.” Appendix A – Prevailing wage threshold for municipalities increase taking effect on 7/1/2024 of $19,375. Added reference to the meaning of “custom fa ..read more

Highlights of the Revisions In April 2024 an updated version of the Uniform Grants Guidance was released. Some of the most significant revisions include the following: Increase the Single Audit threshold to $1 million from $750,000, potentially reducing the number of single audits required each year. Increase the de minimis indirect cost rate percentage to 15% from 10%, potentially increasing the number of recipients using the de minimum indirect cost rate. Increase the threshold used to define a capital expenditure to $10,000 from $5,000, reducing the administrative requirements related to l ..read more

Local Finance Notice 2024-05 CY 2024/SFY 2025 State Aid Certification On February 27, 2024, Governor Phil Murphy presented his proposed FY 2025 budget to the State Legislature. No municipality will receive less total State formula aid in support of its CY 2024 or SFY 2025 budget than it received in support of its prior year budget. Please note that Municipal Relief Fund Aid issued in CY 2023/SFY 2024 was a one-time appropriation. Budget Certification The State Fiscal Year 2025 Budget proposes a $7.2 Million dollar increase in Energy Tax Receipts Aid (ETR). For every Municipality, this equates ..read more

Local Finance Notice 2023-15 Current Public Bidding Thresholds and Office of State Comptroller Reporting Thresholds Pursuant to N.J.S.A. 40A:11-3(c) and 18A:18A-3(b), the State Treasurer has exercised her authority to adjust bid thresholds for contracting units subject to the Local Public Contracts Law and the Public School Contracts Law. These adjustments became effective on July 1, 2020 Updates to Thresholds The maximum bid threshold for contracting units that have appointed a Qualified Purchasing Agent has been increased from $40,000 to $44,000. The maximum bid threshold for contracting un ..read more

Local Finance Notice 2023-19 Calendar Year 2024 Municipal & County Budget Cap Information This Local Finance Notice addresses issues related to the CY 2024 Municipal and County Budgets, the 1977 and 2010 cap laws, and the Cost of Living Adjustment. Cost of Living Cap Adjustment The annual COLA is based on the Implicit Price Deflator for State and Local Governments calculated by the U.S. Department of Commerce, Bureau of Economic Analysis. The automatic increase to the 1977 cap law base is 2.5%, except that the governing body may pass a COLA ordinance increasing the base by 3.5%. A municip ..read more

Local Finance Notice 2024-01 LOSAP CY 2023 Annual CPI Adjustment (For Use in CY 2024) This Local Finance Notice provides local units administering a Length of Service Awards Program with information regarding award increases and cost of living adjustments to maximum award amounts. New programs must provide a benefit between $100 and $1,150 per year. Automatic CPI adjustments are permissible if authorizing language was included in the enabling resolution or ordinance. Time-to-time CPI adjustments can be made up to a maximum equal to the cumulative percentage increase since the award was la ..read more

Local Finance Notice 2024-02 CY 2024 Municipal Levy Cap Referendum Procedure This Local Finance Notice provides specific instruction and direction to calendar year municipalities considering holding a public referendum to exceed either the: Two (2) percent municipal property tax levy cap pursuant to N.J.S.A.40A:4-45.45 et seq.; or Two and one-half (2.5) percent appropriation cap pursuant toN.J.S.A. 40A:4-45.3 et seq. If municipal officials are considering a levy cap referendum, this Notice should be reviewed immediately by those involved in budget preparation and elections. Levy Cap Referend ..read more

Local Finance Notice 2024-03 Appropriations Cap Relief for CY2024/SFY2025 Budgets N.J.S.A. 40A:4-45.3d authorizes the Local Finance Board (Board) to grant additional exceptions to the municipal appropriations cap (also known as the “1977 cap”) upon finding that extraordinary circumstances exist resulting in an unanticipated increase in expenditures for a service essential to the health, safety, and welfare of New Jersey residents. Such exceptions, when granted by the Board, are applicable to all municipalities but only effective for the local budget year in which the exceptions are granted. Th ..read more

Local Finance Notice 2024-04 New Russia-Belarus Law Developments & Implementation Required by Contracting Units On August 4, 2023, a company obtained a temporary restraining order (TRO) from the United States District Court for the District of New Jersey, which enjoins the State from enforcing the “Prohibited Activities in Russia or Belarus” law against that company on the ground that the statute is likely inconsistent with federal law. At that time, due to the ongoing litigation, the New Jersey Department of the Treasury (Treasury) removed the Russia Belarus list from its website, and the ..read more