Municipal Budget Process

Question 1

Local Budget Law requires this. Listing of intended expenditures

Answer 1

Line Based Budget

Question 2

Listing of expenditures on the basis of work expected to be completed.

Answer 2

Planning Programming Budgeting (PPBS)

Question 3

Starting with zero than justify each purchase regardless of past spending history

Answer 3

Zero Based Budgeting (ZBB)

Question 4

> Assist in budget preparation
Preparation of Annual Financial Statement
Annual Debt Statement
Supplemental Debt Statement
Cash Flow advice

Answer 4

Chief Financial Officer

Question 5

Primary purpose, required by law

Answer 5

Financial Control

Question 6

Focus priorities, policy reform

Answer 6

Policy Instrument

Question 7

Basis for management of operations

Answer 7

Management tool

Question 8

Spending money in areas in need

Answer 8

Economic tool

Question 9

Consists of general revenues, tax revenue, appropriations- general gov’t operation.

Answer 9

Current Fund

Question 10

Dedicated fund monies collected are used for that activity- Dog Trust Fund, Assessment Fund

Answer 10

Trust Funds

Question 11

Issuance of debt, BAN

Answer 11

General Capitol

Question 12

Specific service- water, sewer, electric, pool

Answer 12

Utility

Question 13

What are the two sides of a budget

Answer 13

Appropriations and revenues

Question 14

> Consolidated Municipal Property Tax Relief (CMPTRA)
ABC License Fees
Fees & Permits (dogs, cars, construction)
Court
Parking Meter Collections

Answer 14

Revenues

Question 15

Money going out

Answer 15

Appropriations

Question 16

Budget year starts on January 1st but you don’t need to adopt till

Answer 16

March 20

Question 17

Temporary budget shall not exceed___ of the total budget of the preceding years realized appropriations.

Answer 17

26.25%

Question 18

> 1/1-12/31
Introduction-Feb 10th
Advertisement- 10 days prior to hearing
Public Hearing- before vote for adoption
Adoption- March 20th

Answer 18

Calendar year budget

Question 19

> 7/1-6/30
Introduction- July 27th
Advertisement- 10 days prior to hearing
Public Hearing- before vote for adoption
Adoption- Sept. 1st

Answer 19

State fiscal year budget

Question 20

Permit appropriation transfers to be made last two months of the year. Also allows transfer during the first three months of succeeding year.

Answer 20

N.J.S.A. 40A:4-58

Question 21

N.J.S.A. 40A: 4-46 provides for__ but must be raised by taxation. Financed by surplus and is required to have 2/3 of full membership agree.

Answer 21

Emergency appropriations

Question 22

N.J.S.A. 40A: 4-87 enables the budget to be ___ under certain circumstances except for grants.

Answer 22

amended

Question 23

For a capital budget with a population under 10,000 you need a __ year plan

Answer 23

3

Question 24

For a capital budget with a population over 10,000 you need a __ year plan

Answer 24

6

Question 25

> Bond anticipation notes (BANS)
issued for year or less and renewable up to 5 years
Interest on notes generally lower than bonds

Answer 25

Short Term Notes

Question 26

> Minimum 5 years but as long as 40 years
Minimum life of project must be five years
Every bond requires 5% down payment

Answer 26

Long Term Bonds

Question 27

Where does the 5% come from? located in current fund

Answer 27

Capital Improvement Fund