Local Government in New Jersey

Questions and Answers

Which of the following are types of local government? (Select all that apply)

Local authorities (correct)

Counties (correct)

School districts (correct)

Municipalities (correct)

Special districts (correct)

How many counties are there in New Jersey?

Twenty-one (21)

How are counties classified?

Classified on the basis of size, geographical area, and population density.

How many municipalities are there in New Jersey?

Five hundred sixty-five (565) Signup and view all the answers

Which of the following are forms of local government? (Select all that apply)

Municipal Manager Act of 1923 Signup and view all the answers

What is a major source of revenue for local government?

Property taxes Signup and view all the answers

What does the Municipal Certified Finance Officer Certification Law refer to?

Chapter 110 of the Laws of 1988 Signup and view all the answers

What does PEERA stand for?

Public Employer-Employee Relations Act of 1968 (Collective Bargaining) Signup and view all the answers

What are the primary functions of the Tax Collector?

<ol> <li>Receive & collect moneys assessed or raised by taxation or assessment. 2. Enter into the suitable books of accounts all receipts received in a day. 3. Deposit such public moneys in an authorized public depository. 4. Prepare monthly reports to the governing body. 5. Prepare & furnish a detailed list of all delinquent tax payers. 6. Conduct a tax sale of delinquent taxes.</li> </ol> Signup and view all the answers

What are the primary functions of the Tax Assessor?

<ol> <li>Ascertain the names of owners of all real property. 2. Determine the full and fair value of each real property. 3. On or before Jan. 10, audit & determine the taxable valuations of each taxpayer. 4. Determine the taxable value of tangible personal property not used in business. 5. Compile a tax list and duplicate.</li> </ol> Signup and view all the answers

What does DLGS stand for?

Division of Local Government Services Signup and view all the answers

What are the five major components of the DLGS?

<ol> <li>Bureau of Financial & Assistance. 2. Bureau of Local Management Services. 3. Bureau of Authority Regulation. 4. Office of Local Government Research. 5. Local Finance Board.</li> </ol> Signup and view all the answers

What is the strongest power of the Local Finance Board?

The supervision of financial affairs of a municipality. Signup and view all the answers

Define budget.

A financial plan involving the estimate of expenditures and the proposed method of financing these expenditures through various revenue sources. Signup and view all the answers

What must be done to a budget for there to be authority to spend or tax?

Adoption of the budget. Signup and view all the answers

Who has the authority to approve the insertion of any special item of revenue in a budget?

The Director of the DLGS has the authority. Signup and view all the answers

What is the statute for the insertion of any special item of revenue in the budget?

N.J.S.A. 40A:4-87 Signup and view all the answers

What is the insertion of any special item of revenue in the budget referred to as?

Chapter 159 Resolutions Signup and view all the answers

What are the essentials of budget preparations?

<ol> <li>Budget calendar. 2. Standard budget forms. 3. Comparative fiscal data. 4. Meetings should be held. 5. CEO should establish guidelines. 6. Identify work programs & develop workload data.</li> </ol> Signup and view all the answers

What is the COLA rate ordinance requirement?

When the COLA is less than or equal to 2.5%, a county or municipality can increase its allowable inside-the-cap spending to 3.5%, upon passage of a resolution. Signup and view all the answers

What does a county need to pass for a COLA rate?

Resolution Signup and view all the answers

What does a municipality need to pass for a COLA rate?

Ordinance Signup and view all the answers

What does the tax levy cap law establish?

A new system of homestead credits to reduce property taxes. Signup and view all the answers

What is the local tax levy cap?

2% cap Signup and view all the answers

What is the Fiscal Year Change Law?

Chapter 75, Public Laws of 1991 Signup and view all the answers

What does the Fiscal Year Change Law require?

Municipalities with a population in excess of 35,000, who receive Municipal Revitalization Program aid in 1990, change their fiscal year from Jan. 1 - Dec. 31 to the State Fiscal Year, July 1 - June 30. Signup and view all the answers

What is the budget abbreviation for Salary and Wages?

SW Signup and view all the answers

What is the budget abbreviation for Other Expenses?

OE Signup and view all the answers

What are the major items of revenue in the budget?

<ol> <li>Surplus. 2. Miscellaneous revenues. 3. Delinquent taxes. 4. Current taxes.</li> </ol> Signup and view all the answers

A budget must be introduced no later than when?

February 10, unless an extension is determined by the DLGS. Signup and view all the answers

How many copies of the budget must be filed with the DLGS, and within how many days of introduction/approval?

3 certified copies within 3 days Signup and view all the answers

What are the publication dates for a budget?

10 days prior to the public hearing and 28 days after introduction (approval). Signup and view all the answers

When must a municipality adopt temporary appropriations by?

January 31 Signup and view all the answers

Why does a municipality need to adopt temporary appropriations by January 31?

To cover commitments from the beginning of the fiscal year to the date of budget adoption. Signup and view all the answers

Temporary appropriations cannot exceed what percent?

26.25% of the total of all budget appropriations of the preceding year Signup and view all the answers

What are the votes needed to approve a budget transfer resolution?

Two-third vote of the full governing body are needed. Signup and view all the answers

Budget transfers cannot be done:

Outside the cap to inside the cap, or outside the cap to outside the cap. Signup and view all the answers

Emergency appropriations cannot exceed what percentage of the total of the current & utility operating appropriations?

3% Signup and view all the answers

What are the program periods?

Population under 10,000 have a minimum program period of 3 years; Population over 10,000 have a minimum program period of 6 years. Signup and view all the answers

Who makes up the Municipal Bond Team?

Chief financial officer (CFO), bond counsel, financial advisor, municipal auditor, project engineer, architect. Signup and view all the answers

A bond ordinance can only be adopted when?

If a capital budget (or temporary capital budget) has been adopted. Signup and view all the answers

Does a capital budget amendment need to be advertised?

No; if a particular statement is made part of the bond ordinance than advertisement is not needed. Signup and view all the answers

What is the Debt Limit?

3.5% of the average of the prior three years equalized assessed real property valuations. Signup and view all the answers

What does the Bond Law require?

The period of usefulness of a project to be financed by bonds must be at least 5 years. Signup and view all the answers

What must municipalities provide on a bond?

5% down payment is needed. Signup and view all the answers

List the procedures for authorizing debt.

<ol> <li>Preparation of the 'capital budget sections'. 2. Preparation of the supplemental debt statement (SDS). 3. Other expenses - section 20 costs. 4. After adoption, ordinance is published in a paper & doesn't take effect for 20 days (Estoppel Period).</li> </ol> Signup and view all the answers

Define Estoppel Period.

The 20 days after the adoption of an ordinance before it takes effect. Signup and view all the answers

Another name for 'Other Expenses'.

Section 20 Costs Signup and view all the answers

Name the responsibilities of the Municipal Clerk with respect to the issuance of debt.

<ol> <li>Filing the Supplemental Debt Statement. 2. Introduction of bond ordinances at meetings. 3. Obtain affidavits of the newspaper publication of the ordinance. 4. Notify all persons affected by local improvement ordinances. 5. Publish the ordinance again after adoption. 6. Publishing the 'notice of sale' in at least 2 newspapers at least 7 days prior to the sale which has been authorized by resolution. 7. Obtain and forward to the bond counsel specimens of the signature appearing on the bonds. 8. Sign & seal documents regarding the delivery of the bonds as requested by the CFO. 9. Notes must be manually executed by the clerk, and will be requested to execute various closing documents in connection with the sale of notes.</li> </ol> Signup and view all the answers

Define idle funds.

The investment of funds to provide maximum return on cash balance. Signup and view all the answers

What is the formula for cash flow?

Open Cash Balance + Cash Receipts - Cash Disbursements Signup and view all the answers

Which of the following are types of securities and deposits municipalities can invest in? (Select all that apply)

Government Money Market funds Signup and view all the answers

Where should idle funds be deposited?

Interest bearing accounts Signup and view all the answers

Who is responsible for making and being responsible for municipal deposits?

The CFO is authorized by governing body resolution. Signup and view all the answers

Local contracting units are required by the DLGS to maintain:

An encumbrance account system. Signup and view all the answers

What does a purchase manual do?

Sets forth the procedures used by the contracting unit. Signup and view all the answers

Define the two types of purchasing types.

Centralized - administered by a 'purchasing agent'; Decentralized - require the functional unit departments to make a more active role in obtaining quotes, soliciting vendors, preparing bids, etc. Signup and view all the answers

Define requisition.

An internal form by which a user department initiates a request for purchase. Signup and view all the answers

What is the bid threshold?

$40,000 with a QPA, $17,500 without Signup and view all the answers

What is the quote threshold?

15% of the local unit's bid threshold; $6,000 with a QPA, $2,625 without. Signup and view all the answers

When is a BRC required?

Purchases over 15% of the local unit's bid threshold require a BRC. Signup and view all the answers

What is the purpose of formal bidding?

It promotes competition. Signup and view all the answers

What is the price in which single purchases should be included as part of a town's inventory of fixed assets?

$5,000 Signup and view all the answers

The Annual Audit is performed by?

Registered Municipal Accountant or Certified Public Accountant. Signup and view all the answers

Define fund structure.

A set of self-balancing accounts. Signup and view all the answers

Name the funds used by New Jersey municipalities.

<ol> <li>Current fund (general operating nature). 2. General capital fund. 3. Trust fund (records specific i.e. animal control). 4. Utility operating & capital funds (enterprise funds). 5. State and federal grant funds.</li> </ol> Signup and view all the answers

In double-entry bookkeeping, what must occur?

Debits and credits should be equal. Signup and view all the answers

What are the basic elements of internal controls?

<ol> <li>Separation of duties. 2. Written procedure for reviewing transactions. 3. Written procedure to establish safeguards against duplicate payment of bills. 4. Prompt deposit of all funds within 48 hours of receipt. 5. Use of pre-numbered receipts and checks. 6. Preparation of a record of all cash receipts as soon as the cash is received. 7. Current and complete posting of all records. 8. Verification of the tax bills, collections & overpayments. 9. Prompt collection and accounting of all delinquent taxes, fees & assessments. 10. Prohibition against cashing employee checks. 11. Check the entries & calculations on timesheets, payroll & deductions registers. 12. Provision for inventory control of supplies and equipment. 13. Periodic surprise cash counts.</li> </ol> Signup and view all the answers

What is the purpose of a single audit?

To avoid duplication in effort when separate audits are performed. Signup and view all the answers

Who must respond to the audit? How?

The CFO must respond in writing to each of the recommendations by submitting to the DLGS a Corrective Action Plan. Signup and view all the answers

What are the limitations of the petty cash fund?

$500 with a maximum drawdown of $50 per individual purchase. Signup and view all the answers

Who performs school district audits?

Registered Municipal Accountant or a Certified Public Accountant with a School Auditor's License. Signup and view all the answers

Who is responsible for the day-to-day administrative operations of the school district?

The Business Administrator is responsible. Signup and view all the answers

Name the reasons school finance is relevant to municipalities.

<ol> <li>The largest portion of the entire property tax bill goes for school purposes. 2. CFO, CTC, CMC may be appointed as treasurer of school monies. 3. Certain school finances are included in the municipal budget (Type I). 4. Outstanding school debt is reported on the 'annual debt statement'. 5. School districts may use part of the municipal statutory debt limit. 6. School districts may cooperate with the municipality. 7. Municipal governing body must review defeated school budget. 8. A municipality can transfer its surplus funds to the schools.</li> </ol> Signup and view all the answers

Who is appointed by the mayor in a Type I school district and elected by the voters in a Type II district?

School Board members Signup and view all the answers

When must the adoption of the school district's budget be done? Who must it be submitted to?

On or before January 15, it must be submitted to the County Superintendent. Signup and view all the answers

What is the publication requirement for the school district budget?

7 days prior to the public hearing. Signup and view all the answers

When is the Public Hearing/Adoption of the school budget?

First Tuesday in March / March 18. Signup and view all the answers

When is the school board election?

First Tuesday in April (Type II only). Signup and view all the answers

Name the sections of the school budget.

<ol> <li>Current expenses (operations). 2. Vocational evening school/classes. 3. Vocational evening school/classes for foreigners. 4. Capital reserve fund. 5. Debt service.</li> </ol> Signup and view all the answers

What must Financial Disclosure Statements include? (Select all that apply)

Source of fees Signup and view all the answers

What does Pay-to-Play require?

Businesses must submit a list of contributions made to elected officials. Businesses awarded contracts in excess of $50,000 a year must file an annual disclosure of contributions statement with ELEC. Signup and view all the answers

Local authorities are considered?

"Quasi-public" Signup and view all the answers

How are self-liquidating municipalities created?

By ordinance. Signup and view all the answers

How are special districts created?

By petition, proposed ordinance for Local Finance Board approval. Signup and view all the answers

How are local authorities created?

Ordinance, Resolution, for Local Finance Board approval. Signup and view all the answers

Study Notes

Types of Local Government

Local governments include counties, municipalities, school districts, local authorities, and special districts.

Counties in New Jersey

New Jersey has 21 counties.
Counties are classified based on size, geographical area, and population density.

Municipalities in New Jersey

There are 565 municipalities in New Jersey.
Local government can take various forms including the Commission Act of 1911, Municipal Manager Act of 1923, and Optional Municipal Charter Law.

Revenue Sources and Budgeting

Property taxes are a major revenue source for local government.
The budget is a financial plan estimating expenditures and proposed financing methods.
Adoption of the budget is required to authorize spending or taxation.

Tax Roles

The Tax Collector is responsible for collecting taxes, maintaining records, and conducting tax sales.
The Tax Assessor determines ownership and valuations of real property and compiles tax lists.

Local Government Services

The Division of Local Government Services (DLGS) oversees local government finances, with five components including the Bureau of Financial Assistance and Local Management Services.
The Local Finance Board has the authority to supervise financial affairs of municipalities.

Budgeting Procedures

Budget must be introduced by February 10 unless extended by DLGS.
Three certified copies of the budget must be filed with the DLGS within three days of introduction.
Temporary appropriations must be adopted by January 31 to cover fiscal commitments.

Emergency and Regular Appropriations

Emergency appropriations cannot exceed 3% of total operating appropriations.
Budget transfers require a two-thirds vote of the governing body.

Capital and Debt Management

Bond ordinances require the adoption of a capital budget.
Municipalities must provide a 5% down payment for issued bonds.

Auditing and Internal Controls

Annual audits are performed by a Registered Municipal Accountant or Certified Public Accountant.
Internal controls include separation of duties, written procedures, and regular cash collections.

School Finance and Governance

School finance impacts local municipalities due to property tax allocations and shared responsibilities.
School budgets must be submitted to the County Superintendent by January 15.

Purchasing and Contracting

Local contracting units must maintain an encumbrance account system.
The bid threshold is set at $40,000 with a Qualified Purchasing Agent (QPA), and $17,500 without.

Financial Disclosure and Ethics

Pay-to-Play policies require businesses to disclose contributions to elected officials following significant contracts.
Financial Disclosure Statements must detail sources of income, fees, and gifts.

Special Districts and Authorities

Self-liquidating municipalities, local authorities, and special districts are established through ordinances or petitions requiring Local Finance Board approval.

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Description

Explore the various types of local government in New Jersey, including counties and municipalities. This quiz also covers revenue sources, budgeting processes, and the roles of tax collectors and assessors. Test your knowledge on how local governance operates in this state.