Municipal Finance

Question 1

What is Aggregation and why is it important

Answer 1

It is the grouping of similar goods and services. Purchase in larger quantitities you get a better price

Question 2

budget process. how far in advance must a public hearing be published, and how many days in between introduction and approval shall a public hearing be held?

Answer 2

10-28 day rule

10 days of publication before hearing, and 28 days between introduction/approval and public hearing held

Question 3

When budget is introduced/adopted, where does it need to go and when?

Answer 3

1. 3 copies to DLGS within 3 days of introduction/adoption
2. within 15 days after final adoption, it must go to the county tax board because they set the rates for tax bills
3. municipality can finally adopt without the State approval. The stat DLGS reviews the budget

Question 4

What is the vote to adopt the budget?

Answer 4

the majority vote by FULL MEMBERSHIP (not who is present) of the governing body. ie: if there is a 7 member body 4 is the majority

Question 5

True/false: the budget must have original signatures

Answer 5

true. manual signatures when submitted

Question 6

how many votes needed when money is involved?

Answer 6

2/3 of full governing body

Question 7

how many votes need when money not involved?

Answer 7

majority vote of full governing body

Question 8

how many days to publicize before public hearing

Answer 8

7 days

Question 9

how many days after introduction for hearing?

Answer 9

10 days

Question 10

what is the number of votes required for passage of resolution and ordinances?

Answer 10

the majority of the full membership of the governing body

Question 11

Notes: if a resolution or ordinance changes something financially for example an emergency appropriation-transers-bond ordinance, because teh bond changes the debt service then it must be a ___ vote

Answer 11

2/3 vote of the full memberhsip (not who is in attendance at the meeting) of the governing body

Question 12

Bond Law

Answer 12

NJSA 40A:2

Question 13

Budget

Answer 13

NJSA 40A:4

Question 14

Fiscal Affairs Statute

Answer 14

NJSA 40A:5

Question 15

Public Contracts Law Statute

Answer 15

NJSA 40A:11

Question 16

what are the Statutory protected classes of positions?

Answer 16

Tax Assessor, Tax Collector, CFO, Municipal Clerk

Question 17

What is the process for Statutory protected positions?

Answer 17

The positions can’t be abolished, but they can be reduced to part-time or consolidated through a shared-services agreement.

Question 18

what is the local finance board?

Answer 18

the municipality goes to teh LFB to seek relief from statutory issues such as to exceed the cap limit

Question 19

True or false: does the DLGS give relief to Statutory issues

Answer 19

false

Question 20

When can you do appropriation transfers?

Answer 20

the last 2 months of the fiscal year or first three months of the new one

Question 21

Who is required to file a FDS -Financial Disclosure Form?

Answer 21

Agency, Employee, Officer

Agency- any agency, board, governing body within a county or municipality and any independent local authority (sewerage, utilities, housing, fire districts, transportation authority

Employee- any person, compensated or not full or part-time employed by or serving on a local government agency, who is not a local gov. officer but shall not mean any employee of a school district

Officer -compensated or not, par/full time who is- elected to any office of a local gov agency 2. serving on a local gov agency which has the authority to enact ordinance, approve development apps or grant zoning variances 3. member of an independent muniipal, county or regional authority. 4 mangerial executive or cinfidential employee of a local gov agency.

Question 22

who is not required to file a FDS?

Answer 22

municipal court judge or clerk, members of County oards of Taxation, registered Municipal Accounts engaged in annual audit

Question 23

What are the Municipal Finance Accounts?

Answer 23

Centralized and Decentralized
Centralized - when one dept is responsible for all major financial functions ie: tax asessment, collection, accounting, budgeting, purchasing and treasure management. In most cases CFO reports directly to the Mayor, Manger or Administrator. Generally agree tha a centralized Finance dept provides for better coordination of financial activities and simplified financial procedures proticularly necessary in larger municipalities

Decentralized - exists when the fiscal responsibilities are shared by a number of departments or officials. Example: Tax Collector may be fully responsbile for his/her office reporting directly to the Mayor, Manager or Administrator. Same would hold true for the Treasurer.

Question 24

What is Debt Service

Answer 24

Principal and interest paid on what the municpality borrowed or what is owed

Question 25

``` What is the General Ledger 2. who does it? 3. why is a general ledger kept? 4where does it go? 5. what does it do? 6. what does the genreal ledger contain? 7. why is the general ledger so important? ```

Answer 25

the official financial permanent record of the municipality that contains a summary of all finanical transactions as recored on the original books of entry (budget, cash disbursements, registser, cash reeipts register, etc) -CFO maintains the ledger -to provide an audit trail for testing compliance with laws and regulations- used to make and prepare financial statements --gives precise account of balances 6-the funds, accoutns and transactions in double-entry form; utilizing the debit and credit system of account 7. helps avoid over expenditures, CFO keeps it, it is the Official Permanent Record, Debits and Credits system, double entry

Question 26

taxpayers are given a __ grace period from the due date of taxes. what happens if it is missed?

Answer 26

10 day grace period. The interest is calculated back to the 1st day due

Question 27

Explain an emergency appropriation and given specific reasons

Answer 27

It is authorized by the adoption of an ordinance (remember money is involved) by 2/3 vote of the full membership of the governing body. For the reparie, reconstruction of streets, roads, bridges or other property damaged by flood or hurricane. other examples: preparation of an approved tax map, execution of a revaluation, revision & codification of ordinances, preparation of a master plan, drainage maps for flood control purposes, preliminary engineering studies/planning for installatin & construction of sanitary sewer, expenses Municipal Consolidation Act, contractually required severance liabilities from layoff or retirment when total liability is in excess of 10% of the amount to be raised by taxation in the fiscal year of such layoff or retirements, preparation of a sanitary or storm system map.

Question 28

what time frame can special emergency appropriation be paid back?

Answer 28

over the next 5 years

Question 29

Summary of Special emrgency appropriation

Answer 29

adopted by ordinance by 2/3 membership, pay back over 5 years, for storm damage infrastructure, prep of tax map, reval, cod of ord, master plan

Question 30

when must the tax appeal be filed

Answer 30

by April 1st, to the County Tax Board and copies to the municipal clerk and assessor

Question 31

what is the last date to settle a tax appeal and why?

Answer 31

the cut-off is October 1st so that the county can get the tax bills out

Question 32

change orders to contracts can not be more than the ____ total of ___ percentage?

Answer 32

Aggregate, 20%

Question 33

in the budget where do you find items listed for Capital Improvements? Capital impreovement plans legth of term?

Answer 33

they are in the Capital portion of the budget (bondable items also). term for small municipalities is 3 years, large municipalities is 6

Question 34

true/false: every aspect of a bond ordinance must be done right

Answer 34

true

Question 35

what qualifies as a bondable item?

Answer 35

must have a value of at least 5 years

Question 36

what is a supplemental debt statement?

Answer 36

indicates the annual debt as of the end of the prior calendar or fiscal year, whicever is appropriate , plus cumulative interim debt. The municipality an't exceed 3.5% of the average of three years of the equalized total value of real property

Question 37

what is surplus?

Answer 37

the fund balance

Question 38

what is Fund Balance?

Answer 38

surplus

Question 39

before the end of the year name three things the municipality must do?

Answer 39

cancel any unexpended balances, complete all transfers and account are in good standing, pay all bills. If you wait until the end of the year, the surplus won't be available for 2 years

Question 40

name three things associated with the introduction of a temporary budget

Answer 40

adopted by resolution within the first 30 days of the budget year. 2. requires affirmative vote of the majority o full membership of the gov. body 3. shall not exceed 26.25 of the total appropriations made preceding fiscal year

Question 41

give at least 3 examples of a fixed asset and the amount of money associated with general fisced assets by statute?

Answer 41

1 Lands owned by the municipality 2. buildings owned by the municipality 3. vehicular equipment owned by the municipality- all vehicles must be in excess of $5k individually

Question 42

what is a flexible chart of accounts FCOA?

Answer 42

a 13 digit account code used to idenify all accounts included in the financial records of the municipality. each sequence identifies the level of fianancial account 1 first 2 the fund ( current, general capital) NEXT 3- general ledger/trial balanace account (asset accounts, liability/fun balance (surplus) NEXT 2 - appropriation/NJCAFR - general ledger & budget category such as anticipate revenue NEXT THREE - subsidiary accounts for revenue and appropriations (debt/trust fund etc) LAST 3 - detail line items (salaries and wages and O.E. expenses) these may be modified to meet own unique needs

Question 43

what is the procedure to enter into a shared service agreement?

Answer 43

1. a resolution is required, doesn't have to set forth terms but shall clearly identify it by reverece. 2. an agreement must be filed and open to public inspection of the local unit immediately 3. the aggrement shall take effect upon adoption of resolutions by all parties therto

Question 44

name at least 5 services eligible to participate under the Uniform Shared Services and Consolidation Act

Answer 44

gerneral government administration, health, police and fire, code enforcement, tax assessment and collection, financial administration, environmental services, joint municipal courts, youth, senior services. welfare and social services programs. NOTE, in the case of a contract for the joint provision of sercices, whereby state certification requirments are a condition of employment, the contract shall provide the payment of a salary to the employee and shall designate on the municipalities as the promary employers of the employee for the purpose of that person's tenure rights.