Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CMFO Exam > Local Budget Law > Flashcards

Local Budget Law Flashcards

1
Q

Cash Basis Budget

A

-Sufficient Cash collected to meet debt service, operations and mandatory payments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Transitional Year Budget

A
  • budget to cover January 1st - June 30th for municipalities that want to transition to a fiscal year; must be approved by Local Finance Board
  • Budget to cover July 1st - December 30th to revert back to calendar year; must be approved by LFB
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Budget Introduction

A
  • CY - Feb 10
  • FY - Aug 10
  • in writing at meeting of governing body
  • First Reading by title
  • 1 certified copies sent to director within 3 day after approval
  • Once introduced; fix time and place for public hearing
  • Introduced by majority of the full membership
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Local Budget Date Extension

A

-Director of DLGS may with approval from LFB extend dates of introduction & adoption

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Advertisement of Budget

A
  • Advertise after approval
  • contain copy of budget or budget summary
  • set the date time and place of hearing
  • 10 days prior to hearing
  • in local newspaper
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Budget Advertisement Requirements

A
  • Totals of major sections (OE, Capital Improvements, S&W, surplus for previous and current years)
  • Principle and Interest on Debt and total Debt remaining
  • # of Employees
  • Property Tax previous year and estimated for C/Y
  • Amount to be raised by taxes and other revenue sources
  • Appropriations - P/Y & C/Y
  • Location to get copies of budget with contact info
  • Budget title in Bold and 16 Point typeface; remainder in bold 8 point typeface
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Time of Public Hearing

A
  • 28 days after budget introduction for muni

- 18 days after budget introduction for county

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Public Hearing - Time and Place

A
  • held at time and place advertised
  • Budget read in full or by title if atleast one week prior a complete copy of the budget is available for public inspection available to any one that requests a copy
  • Governing body by resolution by majority of the full determine that the budget shall be read by title
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Budget Amendments

A
  • Amendment required by Director of DLGS prior to hearing do not need to be advertised
  • Governing body may amend budget during or after public hearing; amendments must be read in full and submitted to director of DLGS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Requirements for Public Hearing on Amendments

A
  • add new item of appropriation in excess of 1% of total budget
  • increase or decrease any item of appropriation by 10%
  • Increase amount to be raised by 5%
  • Notice of hearing on amendment shall be advertised 3 days before hearing (published in full or summary with same requirements as adoptions)
  • may satisfy publication requirements by publishing a summary and stating the location where the amendments can be read in full
  • Amendments after certification of state aid amounts and for the purposes of appropriating state aid revenue which reduce the amount to be raised by taxes may be made without public hearing or advertisement
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Adoption of Budget

A
  • by resolution of majority of the full
  • County - Feb 25
  • Municipality - C/Y Mar 20; F/Y Sept 20
  • Adopted budget sent to Director of DLGS and library 3 days after adoption
  • Budget adoption constitutes appropriations & amounts to be raised by taxes
  • put on website with “user friendly budget”
  • for muni. that operates on state fiscal year, if the governing body fails to adopt budget w/in permitted time, must notify CFO must notify director w/in one working business day
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Budget Transmission to Local County Board

A

-Clerk Responsible to transmit within 15 days to local county board

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Late Approval of Budget

A
  • Provide statement of reasons for delay to Director of DLGS
  • If county does not receive budget, notify Director
  • Director can then set budget based on prior year appropriations with necessary adjustments for debt service, etc
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Temporary Appropriations - General Budget

A
  • not to exceed 26.25% of previous years budget excluding debt service, capital improvement fund and public assistance.
  • by resolution within 1st 30 days of fiscal year to make appropriations to provide for period prior to budget adoption
  • If budget deadline is extended by Director, permit additional temporary appropriations
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Emergency Temporary Appropriations

A
  • adopted by 2/3 of full membership for period between first of year and budget adoption
  • copy of resolution filed with Director
  • If adopted after introduction and not included in introduced budget, shall be included by amendment in the adopted budget, no public advertising or hearing required
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Budget Sections

A
  • Operation of Local Unit (C/F)
  • Operation of Utility
  • Dedicated Assessment Budget
  • Dedicated by Rider
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Form and Content of Budget

A

-Prefaced with explanatory statement
-Tabulated statement of Anticipated Revenues
-Tabulated statement of Appropriations
Revenues = Appropriations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Budget Revenue Categories

A
  • Surplus Anticipated
  • Misc Revenues
  • Receipt from Delinquent Taxes
  • Amount to be Raised by taxes to support municipal budget
  • Budget will list anticipated revenue, prior year anticipated revenue and revenue realized in prior year
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Surplus in budget

A
  • shall consist of excess of quick assets such as cash, investments, state or public aid receivable, and deferred charges over legal and demand liabilities.
  • unless prior written consent from Director, amount shall not exceed surplus in cash or quick assets at beginning of year
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Misc Revenues in Budget

A
  • amounts reasonably expected to be realized during the year from regular sources or from sources reasonably capable of anticipation
  • anticipated revenue can not exceed cash realized in prior year unless authorized by the Director of DLGS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Misc Revenue due to Sale of Property

A

-may anticipate as misc revenue if obligation is entered into prior to adoption of budget

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Sinking Fund Surpluls

A

-Cash surplus in Sinking Fund, with approval from sinking fund commission and director of DLGS use as anticipated misc revenue in budget

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Receipts from delinquent taxes

A
  • taxes levied for prior years unpaid and owed to local unit
  • Also includes TTL owned by municipalitiy
  • A determination of the % of collection of delinquent taxes for the immediately preceding year - divide amount of prior year’s delinquent taxes collected by the amount of delinquent taxes unpaid and owing on the first day of the year, adjusting by the addition of prior year’s taxes added during such fiscal year, less any prior year’s delinquent taxes abated, remitted or canceled
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Amount to be Raised by Taxes for Municipal Budget

A

Difference between all budget appropriations less anticipated revenues
-includes RUT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Arrangements of Appropriations

A
  • Appropriations for Current Year
  • Appropriations for Previous Year
  • Appropriations by Emergency Resolution
  • Previous Year Appropriations modified by transfers
  • Amounts expended (paid or charged)
  • Amounts expended (reserved)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Separate Items of Appropriations

A
  • Administration, Operation & Maintenance of all departments, etc.
  • Contingent expenses - not more than 3% of budget
  • Interest & Debt redemption charges
  • Deferred charges and statutory expenses
  • Payment of all judgments not for capital purposes and for which notes and bonds cannot be lawfully issued
  • Reserves
  • Cash Deficit of preceding year
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Operation of Utility in Municipal Budget

A
  • in separate section of budget
  • revenues = appropriations
  • revenues can not be excess of realized unless approved by Director and acted upon by governing body (ie pass rate increase by ordinance)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Appropriations of Utility in Municipal Budget

A

-Include at least - operations, interest and debt retirement; deferred charges & statutory expenditures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Utility Operations Surplus or Deficit

A
  • Surplus can be anticipated in C/F budget as “Surplus from,,,utility”
  • Deficit - included in budget as “Deficit in…”
  • Deficit raised in next year’s budget
  • Anticipated Deficit - appropriated as deferred charge in current fund budget
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Transfer of Surplus Revenue of Utility regulated by BPU

A

-Not to exceed 5% of annual costs of operation of utility may be transferred from utility and included in municipal budget

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Dedicated Assessments Budget

A
  • Revenue derived from collection of special assessments on property specially benefited.
  • Shall contain appropriation for payment of debt
  • service
32
Q

Dedicated Revenues

A
  • Trust funds, special taxes, etc
  • can not provide reasonable accurate estimate in advance; sahll include amounts reasonably expected to be realized in cash
  • Classified in budget according to their respective sources and in separate section of budget together with the dedicated appropriations which dedicated revenues are applicable - Revenues must equal appropriations
  • Special statement included in the budget listing dedicated revenues
  • dedicated revenues available for expenditure once cash is received
33
Q

Reserve for Uncollected Taxes

A
  • non spending appropriation in budget
  • must be sufficient so that anticipated cash receipts atleast equal gthe sum of: all current budget appropriations; amount due to school, county taxes, etc; amounts any other anticipated current expenditures
  • RUT may be reduced by sale of total property tax levy as long as entered into prior to budget adoption
34
Q

Sale of Total Property Tax Levy

A
  • Revenue received due to Total Tax Levy sale shall be excluded from any calculation of tax collection rate or receipts from delinquent taxes
  • DLGS must review contract prior to execution
35
Q

Municipality that reverts from Fiscal Year to Calendar Year

A
  • May not issue bonds
  • limit the tax levy by multiplying one half of levy by .95 and 1.05
  • limit appropriations by multiplying one half of total appropriations by .95 and 1.05
36
Q

Adoption of State, calendar fiscal year

A
  • Any municipality for which the fiscal year is not changed may by ordinance adopt a state fiscal year
  • Ordinance will be introduced concurrently with introduction of the budget
37
Q

Inclusion of amount required for school purposes

A

-Amount to be raised for school purposes, required to be certified by the governing body (Type 1 school districts) for inclusion in the budget, shall set forth in a separate section of the budget upon adoption and shall be added to the amount to be raised by taxes for school purposes which were included in the approved budget upon final adoption

38
Q

Temporary Appropriations for Debt Service

A
  • Made last 10 days of the year preceding the beginning of the fiscal year for all interest and debt redemption charges maturing during the fiscal year
  • Example - Debt Service due January 1st
39
Q

Misc Revenues limited to Cash Receipts

A
  • No misc revenue from any source shall be included as anticipated revenue in an amount excess of the amount actually realized in cash from the same source during the next preceding fiscal year
  • Unless director shall determine upon application the facts clearly warrant an expectation tat such excess will be realized and shall certify in writing
40
Q

Examples of Dedicated Revenues

A

-Dog tax, dog license, solid fuel license, sinking fund, recreation programs, bequest, federal grant, motor vehicle fine dedicated to road repairs, refund payment for JIF

41
Q

Accelerated Tax Sale

A
  • may reduce RUT by deducting any or all receipts anticipated during the fiscal year from sale of unpaid taxes or municipal liens when concluded in the final month of the fiscal year.
  • Sale must be authorized by resolution of governing body
  • Proceeds from sale excluded from calculation of tax collection and receipt from delinquent taxes
42
Q

Computation of RUT

A
  • Where less than 100% of current tax collection rate may be anticipated
  • Apply collection rate
  • For municipalities where tax appeal judgments have been awarded, the governing body of the municipality may elect to determine the RUT by using the average of the percentages of the taxes levied for the last three years; done by resolution approved by the majority of the full and prior to introduction of the budget
  • If tax appeals reduce taxes for previous fiscal year, may elect to calculate current year RUT by reducing the certified tax levy of prior year by the tax appeal adjustments; done by resolution approved by majority of the full prior to budget introduction
43
Q

Appropriation of Cash Deficit

A

-Appropriation for “cash deficit of preceding year” shall appear in annual budget in the amount by which the liabilities and cash disbursements exceeded the cash receipts and other realized revenues; except if provided for in surplus anticipated

44
Q

Capital Budget

A
  • Governing Body shall prepare, approve and adopt a budget for expenditure of public funds for capital purposes to give effect to general improvement programs
  • Plan for the expenditure of public funds for capital purposes; showing as income the revenues, special assessments, free surplus and down payment appropriations to be applied to the cost of the capital project, expense of issuance, engineering supervision, contracts and other related expenses
  • Not more than 6 years
45
Q

Cost of Living Adjustment

A

Rate of annual percentage increase rounded to the nearest half percent in the Implicit Price Deflator for State and Local Government Purchases of Goods and Services

  • Computed and published quarterly by US Dept of Commerce
  • Director shall promulgate bi-annually the cost of living adjustment
46
Q

Limitation on Increase of Appropriation - Appropriations CAP

A
  • Not more than 2.5% or Cost of Living Adjustment, whichever is less
  • When computing include: Increase in valuations and PILOTs,
47
Q

Appropriations CAP Exceptions

A
  • Capital Expenditures
  • Debt Service
  • With approval of LFB, amounts required for funding previous years deficit
  • RUT
  • Expenditures derived from new or increased construction, housing, health or fire safety inspection imposed by State Law, rule or regulation or by local ordinance
  • Appropriations of federal, county, ind authority or state funds, or by grants and local matches
  • Free Public Library
  • Implementing housing element and fair share plan
  • Privately owned libraries
  • Expense mandated by natural disaster, state of emergency
  • Costs mandated by court order, by any federal or state statute or administrative rule, directive, order….
  • LOSAP
  • Interlocal service agreements
48
Q

Budget Transfers

A
  • Transfer In to In, In to Out
  • Can not transfer Out to Out, Out to In
  • Once out, your out
49
Q

Tax Levy Cap

A
  • 2% Cap

- Amount to be Raised shall not exceed Sum of New Ratables, Adjusted Tax Levy and Total Waivers

50
Q

Tax Levy Cap Exceptions

A

Add the following to Tax Levy Cap:

  • increases in capital expenditures and debt service
  • increases in pension contributions in excess of 2%
  • Increases in healthcare between above 2% and the increase in SHBP
  • costs directly related to declared emergency
51
Q

Raise Taxes above 2%

A

-Need public referendum

52
Q

Emergency Appropriations

A
  • After adoption of budget for purposes not forseen at time of adoption
  • Appropriation made to meet pressing need for public expenditure to protect or promote public health, safety, morals or welfare, or to provide temporary housing or public assistance prior to next fiscal year
  • Total amount of emergency appropriation raised as deferred charge in following year’s budget, except if financing the emergency appropriation was made through authorization of bonds
53
Q

Emergency Appropriations Procedure under 3% Procedure

A
  • Can not exceed, including any other emergencies from same year, 3% of total current and utility operating appropriations
  • Governing Body by resolution adopted by 2/3 of full, declare emergency
  • Resolution shall set out nature of emergency
  • File resolution with director
54
Q

Emergency Appropriations exceeding 3% Procedure

A
  • If exceeds 3% of current and utility appropriations including all other emergencies in same year
  • Governing body pass resolution 2/3 of full to declare emergency
  • Director shall consider the resolution and if requested by governing body or tax payers hold hearing
  • Director within 5 days after receipt of resolution or hearing held determine whether an emergency exists and determine that such appropriations are necessary and shall fix the maximum amount no to exceed.
55
Q

Financing Emergency

A

-May finance through surplus funds available or issue “emergency notes”

56
Q

Emergency Notes

A
  • May borrow money and issue it negotiable notes to meet emergency appropriation
  • Shall mature not later than the last day of the fiscal year next succeeding the fiscal year in which the notes were issued and the emergency appropriation authorized
  • authorized by resolution
57
Q

Affidavit by finance officer for emergency notes

A
  • affidavit shall be conclusive determination of total amount of emergency appropriation
  • resolution shall recite or determine that such appropriation was required to meet a pressing need for public expenditure
58
Q

Special Emergency Appropriation

A 
Adopt ordinance for following purposes:
-Prepare Tax Map
-Property Re-evaluation
-Revise and Codify Ordinances
-Prepare Master Plan
-Prepare drainage maps for flood control
-Engineering Studies for sewer system
Must file ordinance with Director
59
Q

Authorization of Special Emergency Appropriations

A

-Adopt a resolution or ordinance authorizing special emergency appropriation to cover cost of extraordinary expense not foreseen at the time of budget adoption for repair of streets, road, bridges, other public and private property damaged by flood, hurricane snow, ice, frost or floods

60
Q

Special Emergency Notes

A
  • 1/5 or 1/3 of all notes shall be paid in each year
  • All note and renewals shall mature and be paid by the last day of the third or fifth year following the emergency resolution
  • 1/5 or 1/3 raised in each annual budget until surplus or financing is paid off.
  • Notes authorized by resolution of 2/3 of the full
61
Q

Public Exigency

A

-by resolution make special emergency appropriation for costs arising from a pubic exigency caused by civil disturbance

62
Q

Judgments

A
  • distressed municipality may be resolution not less then 2/3 of full provide for payment of any judgment against it resulting form court order
  • pay through notes or surplus funds
  • pay back 1/5 for five years
63
Q

Budget Transfers

A

-last 2 months of fiscal year and first three months of succeeding year
-resolution by 2/3 of full
No transfers in Nov & Dec from contingent expenses, deferred charges, cash deficit from preceding year, RUT, down payments, CIF, debt service
No transfers in Jan, Feb, Mar from Appr Reserves from contingent expenses, down payments, CIF

64
Q

Cancel unexpended balance

A

-resolution prior to close of year

65
Q

Assessment Revenue Fund

A
  • All receipts derived from special assessments shall be segregated by the municipality and kept in a separate fund
  • Receipts shall only apply the debt payment and other costs associated with the special assessment
66
Q

Public Utility Funds

A
  • All moneys derived from the operation of publicly owned or operated utilities shall be kept in a separate fund “utility fund”
  • moneys shall only be applied to payment of operation and upkeep costs, debt service.
67
Q

Storm Reserve

A
  • Permitted to by resolution to establish storm reserve

- Unexpended balances for snow removal lapse to reserve

68
Q

Tax Anticipation Notes

A
  • Issue notes in anticipation of collection of taxes; cover expenses until taxes are collected
  • by resolution
  • TAN shall not exceed an amount certified in the gross borrowing power, and no note shall be authorized in excess of amount certified as the net borrowing power
69
Q

TAN Calculations

A
  • Gross borrowing power - 30% of tax levy
  • Net borrowing power = Gross borrowing power minus notes outstanding (except notes that will be paid for by TAN)
  • Certification made by CFO and files with clerk and quoted in resolution
70
Q

TAN Maturity & Renewal

A

-within 120 days after beginning of succeeding fiscal year

71
Q

TAN Interest

A

-No more than 6% per annum

72
Q

TAN Sale

A
  • private sale without previous public offering
  • by resolution of governing body or CFO if authorized to sell notes
  • CFO make report in writing at next meeting stating amount, description, interest rate and maturities, price, name of purchasers - entered in full on meeting minutes
73
Q

Examination of Budget

A
  • Director shall examine budget file din his office with reference to all estimates of revenue and the following appropriations: Debt Service, Deferred Charges, Stat. Exp, Cash Deficit of Preceding Year, RUT, Other reserves and nondisbursement items
  • Director approves or refuses to approve
  • Must receive certification from Director before adopting
  • If disapproved, director will supply reasons with instructions for corrections
  • Publish disapproval in one newspaper
  • Governing body will amend disapproved budget in accordance with the instructions of the director
74
Q

Self Examination of Budget

A
  • LFB adopted rules to exempt certain municipalities from director approval; and provide for local examination
  • Municipality must be fiscally sound
  • Director will review every 3rd year
  • Certify to director that the budget complies with the law
  • File budget with Director
75
Q

4-85: Power to change title or text of appropriation

A

-Make correction of the title, text, or amount of any item of appropriation appearing in the adopted budget only as shall be necessary to make said item of appropriation available for the specific purpose or purposes required by the local unit

76
Q

4-87: Special Items of Revenue and Appropriations

A

-Insertion of any special item of revenue in the budget when such item shall have been made available by any public or private funding source and the amount was not determined at the time of budget adoption and approve insertion of an appropriation item of an amount equal to the special item of revenue/

CMFO Exam (12 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions