Newly Adopted Refunding Bond Rule - 05/23/2012

Newly Adopted NJAC 5:30-2.5 Permits Issuance of Certain Refunding Bonds without Prior Board Approval.  At its May 9 meeting, the Local Finance Board adopted NJAC 5:30-2.5, a rule that allows municipalities, counties and school districts to issue refunding bonds without prior Board approval so long as their issuance realizes debt service savings on the outstanding obligations and certain criteria are met.  NJAC 5:30-2.5 will be effective on June 4, 2012.  If you have any questions about this rule adoption, please contact the Local Finance Board at 609-292-0479.

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N.J.S.A. 34:13A-8.2 provides that "public employers shall file with the commission a copy of any contracts negotiated with public employee representatives following consummation of negotiations." This requirement applies to ALL PUBLIC SECTOR EMPLOYERS FOR ALL BARGAINING UNITS. Additionally, N.J.S.A.34:13A-16.8(d)(2) requires all public employers to provide a summary of all costs and their impact associated with the negotiated agreement for all bargaining units. Full details and requirements along with forms, instructions and examples can be found on the PERC website. Questions may be directed to contracts@perc.state.nj.us or by calling PERC at 609-292-9898.

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Due to the heavy volume of public budget hearings that have been scheduled for the next several weeks, and staffing constraints at the Division of Local Government Services, the Division will not be able to complete its review prior to every scheduled date.  Your municipality should be prepared to move forward with the public hearing with the understanding that no budget action will be able to be taken except in those cases where the Division has completed its review.  Please inform the Division either by e-mail to DLGS@dca.state.nj.us or telephone (609) 292-4806 when your next governing body meeting date is scheduled and the Division will make every attempt to have the budget review completed by that time.  IF YOUR MUNICIPALITY QUALIFIES FOR LOCAL EXAMINATION, you can proceed to adopt at your regularly scheduled meeting.

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Local Finance Notice 2012-4 provides "Guidance on Preparing for Tax Appeals and Paying for their Impact; Including a Discussion of the Newly Enacted P.L. 2011, c. 224."  This Notice discusses issues in financing repayment of tax refunds under several fiscal circumstances.  It also reviews the new capability for financing current year appeals that result in a cash deficit due to tax appeals.

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Local Finance Notice 2012-1 provides an update regarding the annual cost of living increase for municipalities and fire districts that have Length of Service Award Plans (LOSAP) and provide a COLA increase each year.  The Notice describes the separate increase calculations for both municipal and fire district LOSAP plans that provide for COLA increases.

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