Municipal Budget Process

Question 1

Where should you advertise the resolution for introduction of the budget?

Answer 1

In your official newspaper

Question 2

List three types of budgeting concepts

Answer 2

Line Based Budget
Planning Programming Budgeting Systems
Zero Based Budgeting

Question 3

Which concept are municipalities required to use by law?

Answer 3

Line Based Budget

Question 4

Which budget concept is based on what you plan to spend without regard to previous years Spending?

Answer 4

Zero Based Budget

Question 5

Name some of the duties of the Chief Financial Officer.

Answer 5

Assist in Budget Preparation
Assemble Revenue Estimates
Prepare Expenditure Analysis
Preparation of Annual Financial Statement
Annual Debt Statement
Supplemental Debt Statement
Cash Flow Advice

Question 6

Is the CFO permitted to cut the Budget?

Answer 6

No

Question 7

What are some of the main purposes of the budget?

Answer 7

Financial Control - Primary purpose by Law
Policy Instrument - Focus Priorities, policy reform
Management Tool - Basis for management of operations
Economic tool - Spending money in areas needed

Question 8

Name some types of funds

Answer 8

Current Fund - general revenues, tax revenue, appropriations for general government operations
Trust Funds - dedicated fund monies
General Capital - Issuance of debt - Bond Anticipation Notes
Utility - Specific service - water, sewer, electric, pool

Question 9

Which fund is for a dedicated purpose?

Answer 9

A Trust Fund

Question 10

What are the two sides of the budget?

Answer 10

Revenues and Appropriations

Question 11

Are taxes considered revenue?

Answer 11

No

Question 12

What does Pilots stand for

Answer 12

Payment In Lieu of Taxes

Question 13

Name some examples of revenue

Answer 13

Consolidated Municipal Property Tax Relief(CMPTRA)
ABC License Fees
Fees and Permits
Municipal Courts
Parking Meter Collections
PILOTS
Interest on Investments
Cell Tower Rental

Question 14

Does the budget require a majority of all sitting members to pass?

Answer 14

Yes, a super majority

Question 15

The municipal budget runs on a______ year.

Answer 15

Calendar

Question 16

What must the governing body adopt in order to conduct business in the first quarter of the year?

Answer 16

A Temporary Budget

Question 17

When does the budget year start?

Answer 17

January 1

Question 18

The budget has to be introduced by______

Answer 18

Feb. 10

Question 19

The public budget hearing has to be advertised 10 days prior to the hearing. True or False?

Answer 19

True

Question 20

You do not have to have the public hearing before adoption. True or False?

Answer 20

False

Question 21

When must you adopt the temporary budget?

Answer 21

Between Jan 1 and Jan 15

Question 22

What is 26.25%?

Answer 22

The temporary budget amount may not exceed 26.25% of the total budget of the preceding years appropriations

Question 23

What is the state fiscal year?

Answer 23

7/1 - 6/30

Question 24

What is NJSA?

Answer 24

New Jersey Statutes Annotated

Question 25

Are budget transfers permitted?

Answer 25

Yes, during the last two months and the first three months of the succeeding year

Question 26

Are there provisions for emergency appropriations?

Answer 26

Yes but the amount of the appropriation must be raised by taxation the following year. It is financed by surplus at the time and required to have 2/3 of the full membership agree

Question 27

Budgets cannot be amended before or after adoption. True or False?

Answer 27

False, budgets may be amended

Question 28

Who approves municipal financing?

Answer 28

The governing body

Question 29

How does financing get approved?

Answer 29

By Ordinance

Question 30

A municipality with under 10,000 population requires a___ | year plan with the Capital Budget.

Answer 30

3 year plan

Question 31

Is a Capital Budget required to operate on a calendar year?

Answer 31

No.

Question 32

The useful life of equipment must be how many years?

Answer 32

Five

Question 33

What is the minimum down payment?

Answer 33

5%

Question 34

The Capital Plan for over 10,000 is 6 Years. True or False?

Answer 34

True

Question 35

What items are included in the Capital Budget?

Answer 35

Short Term Notes Bond Anticipation Notes Issued for 1yr or less but renewable up to 5 years Interest on notes generally lower than bonds Long Term Bonds Minimum 5 yrs. but as long as 40 yrs. minimum life of project must be at least 5 yrs. every bond requires a 5% downpayment

Question 36

A Capital Bond is like your mortgage

Answer 36

5% down and is financed through traditional financing

Question 37

Where is the Capital Improvement Fund located?

Answer 37

Located in the current Fund

Question 38

Capital often implies debt but is not the case for the Capital Improvement Fund. True or False?

Answer 38

True

Question 39

What are some things you can charge to the Capital Improvement Fund?

Answer 39

Surveying, Architectural and Engineering Fees

Question 40

Can the Capital Improvement Fund be used to fund a project?

Answer 40

Yes

Question 41

Appropriations minus Revenues equals_____?

Answer 41

Amount to be collected by taxes