Governor Mikie Sherrill • Lt. Governor Dr. Dale G. Caldwell |
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| News for Local Government Officials |
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Finance NewsNew LFNs on Storm Response and Impact of P.L. 2025 c.185 on Local Unit - 01/30/2026 Local Finance Notices 2026-04 and 2026-05 are now available on the DLGS website. LFN 2026-04 provides updated budget and procurement guidance relevant to the winter storm of last weekend. LFN 2026-05 explains the impact of recently enacted P.L. 2025 c.185, which amends several key statutory provisions relating to budget and AFS submission deadlines, audit deadlines, filling vacancies in statutory positions requiring DLGS certification, and the mailing of estimated tax bills. These Notices can be accessed at https://www.nj.gov/dca/dlgs/lfns/2026/2026-04.pdf and https://www.nj.gov/dca/dlgs/lfns/2026/2026-05.pdf. Please review each notice thoroughly. CY2026 Temporary Budgets - 12/30/2025N.J.S.A. 40A:4-19 had previously limited the maximum of total appropriations made in a temporary budget to 26.25% of the total of the appropriations made for all purposes in the budget for the preceding fiscal year, excluding appropriations made for interest and debt redemption charges, capital improvement fund, and public assistance. P.L. 2025, c.185, signed by Governor Murphy on December 23, 2025, increased this maximum percentage to 35% for temporary budgets adopted by counties and calendar year municipalities starting on January 1, 2026. The maximum percentage for the temporary budgets of State Fiscal Year municipalities remains 26.25%. The Division will be issuing a Local Finance Notice to further explain the updates P.L. 2025, c.185 has made to the Local Budget Law, Local Fiscal Affairs Law, and other laws. CY 2026 / FY 2027 Transitional Aid to Localities - 01/28/2026Transitional Aid is the only discretionary aid available for municipal budgets and will only be available to municipalities that have severe structural difficulties and anticipate problems making payments toward nondiscretionary or critical obligations, including, but not limited to, debt service, contractual obligations, and payroll. A Transitional Aid award is conditioned on the municipality meeting the following requirements: - Submitting to broad State oversight of hiring, procurement, and other matters; - Performing reasonable revaluations or reassessments of property as required by law; and - Submitting to such additional fiscal control measures as may be directed by the DLGS. Applicants who are awarded aid will be required to sign a Memorandum of Understanding (MOU) with the DLGS acknowledging State oversight and committing to compliance therewith. Municipalities intending to apply for Transitional Aid should carefully review LFN 2026-03 and the CY 2026 / SFY 2027 Transitional Aid Application, available on the DLGS website at https://nj.gov/dca/dlgs/resources/transitional_aid/CY2026.FY2027%20TA%20Application%20FINAL.docx. Calendar year applicants must submit a "Notice of Intent to Apply" by February 13, 2026, and a final application by February 27, 2026. Fiscal year applicants must submit a "Notice of Intent to Apply" by August 21, 2026, and a final application by September 25, 2026. Municipal Clerks, please forward this notice to Elected Officials. CY2026 Cap Referendum Guidance - 12/17/2025Local Finance Notice 2025-19 (https://www.nj.gov/dca/dlgs/lfns/2025/2025-19.pdf) provides guidance to municipalities regarding 2026 Levy and Appropriation Cap Referendum procedures. Municipalities considering a levy cap referendum must publish a display advertisement announcing that a referendum may be held and that mail-in ballots are available. For an April 21 referendum, the deadline for this public notice is Tuesday, February 24. For a May 12 referendum, the deadline is Tuesday, March 17. Please review the Notice for further details. New CY2026 Budget LFN - 12/15/2025 Local Finance Notice 2025-18 (https://www.nj.gov/dca/dlgs/lfns/2025/2025-18.pdf) contains important updates on the budget process for counties and calendar year municipalities. Please thoroughly review this Notice in conjunction with our previous 2026 FAST System and Templates Update EGG Notice. It is recommended that municipalities and counties review the Division's budget examination notes from its most recent examination. Prior to this year's AFS and budget submission, please ensure that noted items, if included again in the 2026 budget, are reviewed and appropriately presented in the 2026 submissions. Note that the deadline for Chapter 159 submission is December 19, 2025 (exceptions will be handled on a case-by-case basis). County Constitutional Officers - 2025 Reimbursement & 2026 Minimum Sal - 12/08/2025Local Finance Notice 2025-16R, available at https://www.nj.gov/dca/dlgs/lfns/2025/2025-16R.pdf, supplements the guidance from LFN 2025-16 by announcing the CY2026 statutory minimum salaries for county constitutional officers. The Excel-based reimbursement form can be accessed on the Municipal and County Budgets webpage under the General Publications heading. Please direct any questions to Jorge Carmona at Jorge.Carmona@dca.nj.gov FY2026 Municipal and County Budget Cap Information - 10/09/2025Local Finance Notice 2025-14 addresses issues related to CY 2026 municipal and county budgets and the 1977 and 2010 cap laws. It includes information on the 1977 cap law cost of living adjustment (COLA, formerly called Index Rate) and the use of the COLA ordinance (resolution) and group health insurance increase thresholds. Please review the notice at https://www.nj.gov/dca/dlgs/lfns/2025/2025-14.pdf for additional details. Important FAST Annual and Supplemental Debt Statement Update - 09/05/2025 The Division of Local Government Services has created standardized Excel templates for Annual Debt Statements and Supplemental Debt Statements, replacing the existing process of completing data entry directly in FAST and generating a PDF copy of the submitted information. State Fiscal Year municipalities are currently using the new template for their SFY 2025 Annual Debt Statement, while Calendar Year municipalities and all counties will use the new template starting with their CY 2025 Annual Debt Statement. All municipalities and counties, regardless of budget cycle, must use the Excel template of the Supplemental Debt Statement starting today, September 4, 2025. All templates are made available on the Division's FAST webpage: https://www.nj.gov/dca/dlgs/Fast.shtml. The Annual and Supplemental Debt Statement submission process is similar to that of the Budget and Annual Financial Statement, where, upon completion of the Excel workbook, it is uploaded to FAST and submitted by the Chief Financial Officer. All existing user access to these modules will remain intact, with those with the data entry level of access able to upload documents, while those with CFO access will be able to upload and submit documents. No data entry will be required in FAST itself for these modules. Data entry tabs will be removed, and uploads and submission will take place on the "Attachments & Submission" tab within the record. For Supplemental Debt Statements, additional statuses will be added in order for municipalities and counties to indicate to the Division the final action on a bond ordinance. When an SDS is submitted, it will default to the status of "Filed - Pending Adoption." Within each SDS record, the CFO will be able to update the status to "Filed - Approved" or "Filed - Rescinded," indicating whether the ordinance was ultimately adopted. This functionality will be available soon. For any questions regarding this update or FAST technical assistance, contact Matt Gallello at Matthew.Gallello@dca.nj.gov. New LFN 2025-12 – Long-Term PILOTs & Affordable Housing PILOTs - 09/19/2025Local Finance Notice 2025-12 explains P.L. 2025, c.91 - recently enacted legislation concerning the 5% county share of Payments-in-Lieu-of-Taxes (PILOTs) awarded under the Long-Term Tax Exemption Law (N.J.S.A. 40A:20-1 et seq.), including a new quarterly reporting requirement for CMFOs. The Notice also explains options available to municipalities to offer PILOTs for affordable housing projects. Please review LFN 2025-12 at https://www.nj.gov/dca/dlgs/lfns/2025/2025-12.pdf for further information. A standard template for the quarterly report is available as part of the Municipal Tax Abatement Toolkit at https://www.nj.gov/dca/dlgs/taxabatementkit.shtml. LFN 2025-03 Deadline for FY 2026 Transitional Aid to Localities - 07/25/2025Reminder for FY 2026 Transitional Aid applicants. https://www.nj.gov/dca/dlgs/lfns/2025/2025-03.pdf concerns the CY 2025 / SFY 2026 Transitional Aid Application Process for CALENDAR YEAR and FISCAL YEAR municipalities. Any FISCAL YEAR municipality that intends to apply for FY 2026 Transitional Aid to Localities (Transitional Aid) must notify the Division of Local Government Services (DLGS) by emailing the information set forth in the "Notice of Intent to Apply" to dlgs-ta@dca.nj.gov by no later than August 25, 2025, for FY 2026 applicants. Transitional Aid is only available to communities experiencing extreme fiscal distress that would otherwise result in the municipality's inability to maintain essential services or pay debt service. If Transitional Aid is awarded, Transitional Aid program participants must comply with significant conditions including, but not limited to: the elimination of health care for all officers and employees other than those with full-time status; a ban on certain travel and other discretionary costs; requirements to obtain State approvals for hires as well as for certain contracts and initiatives; and the assignment of a Municipal Technical Advisor to assist the municipality in restoring fiscal health and maintaining program compliance. Municipalities intending to apply for Transitional Aid should carefully review LFN 2025-03 and the CY 2025 / SFY 2026 Transitional Aid Application (available on the DLGS website) as soon as possible. The deadline (August 25, 2025) is rapidly approaching for FY 2026 applicants. Please note that this application is applicable for both CALENDAR YEAR municipalities and FISCAL YEAR municipalities. Municipal Clerks, please forward this notice to Elected Officials: Notice of Adjustment to Statutory Contract Review Thresholds - 06/02/2025 This Notice is being sent on behalf of the Office of the State Comptroller - Public Contracting Oversight Division. Take notice that, pursuant to N.J.S.A. 52:15C-10(d), the Office of the State Comptroller, after consultation with the Department of the Treasury, has exercised statutory authority to adjust the threshold amounts set forth in N.J.S.A 52:15C-10 (a) and (b). Accordingly, as of July 1, 2025, all "contracting units" as defined pursuant to N.J.S.A. 52:15C-10(a) shall notify the Office of the State Comptroller of contracts that meet or exceed the below thresholds as follows: (1) For contracts involving consideration or an expenditure of more than $3,000,000, but less than $15,200,000, no later than 20 business days after the contract award; (2) For contracts involving consideration or an expenditure of $15,200,000 or more, at the earliest time practicable as the contracting unit commences the procurement process, but no later than the time the contracting unit commences preparation of: any bid specification or request for proposal; concession offering; proposal to purchase, sell, or lease real estate; or other related activities and contracts, but not less than 30 days prior to public advertisement or other public or private solicitation; and (3) For contracts issued pursuant to an emergency or public exigency involving consideration or an expenditure of more than $3,000,000, no later than 30 business days after the award of a contract. For additional information, please refer to https://nj.gov/comptroller/about/work/contracting/contracts.shtml. For questions regarding this program: contracts@osc.nj.gov. FAST Chapter 159 Filing Reminder - 05/08/2025Municipalities and counties are reminded that Chapter 159 budget amendments for 2025 cannot be filed in the FAST system until the 2025 adopted budget has been uploaded and submitted in the adopted budget module. In FAST, no additional access is needed for the CFO to complete and file a Chapter 159. An Amendment Preparer level of access has also been added to FAST to allow other municipal and county staff, such as an Assistant CFO, the ability to perform data entry, upload supporting documentation, and submit filings for Chapter 159 and Chapter 85, Petty Cash Funds, and Dedications by Rider. CFO confirmation is required for providing this access in FAST. To ensure timely approval of such requests, it is suggested that CFOs email their approval to Matt Gallello at Matthew.Gallello@dca.nj.gov at the time the staff member submits a request in FAST. For technical questions regarding FAST, contact Matt Gallello at the email address above. For procedural questions regarding Chapter 159 submissions, contact Jorge Carmona at Jorge.Carmona@dca.nj.gov. FAST Adopted Budget Certification - 05/01/2025Similar to prior years, municipalities and counties are reminded that certified copies of adopted budgets are typically made available in July, coinciding with the adoption of the State budget. Tax levy certifications are completed concurrently with budget certifications. Once available, a PDF copy of the certified adopted budget is posted in the FAST system and emailed by FAST to the CFO of the municipality. New LFB-Authorized Appropriations Cap Exceptions - 03/13/2025Local Finance Notice 2024-21R, available at https://www.nj.gov/dca/dlgs/lfns/2024/2024-21R.pdf, explains the March 12, 2025 Local Finance Board approval of Liability Insurance and Workers Compensation Insurance as additional appropriations cap exceptions for CY2025 and SFY2026 municipal budgets. This is in addition to the one-time exception approved in December for Garbage and Trash Removal and Disposal. Please review the Local Finance Notice for important details. The Division has posted Local Finance Notice 2025-03 Municipal Clerks, please forward this notice to Elected Officials: https://www.nj.gov/dca/dlgs/lfns/2025/2025-03.pdf concerns the CY 2025 / SFY 2026 Transitional Aid Application Process for CALENDAR YEAR and FISCAL YEAR municipalities. Transitional Aid is only available to communities experiencing extreme fiscal distress that would otherwise result in the municipality's inability to maintain essential services or pay debt service. If Transitional Aid is awarded, Transitional Aid program participants must comply with significant conditions including, but not limited to: the elimination of health care for all officers and employees other than those with full-time status; a ban on certain travel and other discretionary costs; requirements to obtain State approvals for hires as well as for certain contracts and initiatives; and the assignment of a Municipal Technical Advisor to assist the municipality in restoring fiscal health and maintaining program compliance. Municipalities intending to apply for Transitional Aid should carefully review LFN 2025-03 and the CY 2025 / SFY 2026 Transitional Aid Application (available on the DLGS website) as soon as possible. Deadlines are rapidly approaching. Please note that this application is applicable for CALENDAR YEAR municipalities or FISCAL YEAR municipalities. Volunteer Incentive Program FCOA Code - 02/04/2025Municipalities reporting salaries/wages or other expenses for Volunteer Incentive Programs in their budget must utilize FCOA code 25-245. This is an existing user-defined public safety code available on all general appropriation pages. For 2025 budgets, this FCOA code must only be used for Volunteer Incentive Program appropriations. Any other user-defined public safety functions must now utilize codes 25-241 through 25-244. These codes can be utilized more than once in the budget document. Municipalities are reminded to reference the "Active FCOA Codes for Budget Workbooks" spreadsheet available on the Division's website when selecting FCOA codes for their budget workbooks: https://www.nj.gov/dca/dlgs/FAST/Budget_FCOA_Codes.xlsx. 2025 Municipal Information Sheets and FAST Report Hub - 01/10/20252025 Municipal Information Sheets are now available for reference in the Report Hub section of FAST. The Report Hub is accessed by clicking the "FAST Municipality and County" header in the FAST Portal, and then selecting "Report Hub", which is the last option listed. Levy Cap Reports, Appropriation Cap Calculation Reports, Dedication by Rider Reports, Petty Cash Reports, and State Aid Reports, along with final/certified versions of prior year financial documents, are also available in the Report Hub. As the Division finalizes its transition to the Report Hub, the Fiscal Reports section of the DLGS website should no longer be referenced for the most current versions of the reports mentioned in this notice. Reports of Budget Emergencies will still be available on the Fiscal Reports webpage as Emergency and Special Emergency functions are pending FAST implementation. 2025 FAST System Update - 12/06/2024Please read carefully the below FAST system update. FAST "folders" for the 2025 Budget, 2024 Annual Financial Statement, and 2024 Annual Debt Statement are now available in the FAST portal for Calendar Year Municipalities and Counties. Municipalities and Counties are required to use the following documents: - 2025 Municipal Budget (Version 2025.0, used for both introduction and adoption) - 2025 County Budget (Version 2025.0, used for both introduction and adoption) - 2024 Municipal and County Annual Financial Statement (Version 2024.0) - 2025 Municipal User-Friendly Budget (Version 2025.0) Prior year versions of these templates will not be accepted through FAST. The Municipal Budget, County Budget, and Annual Financial Statement workbooks all contain a "data migration" that will import prior year data, reducing data entry. Macros in the excel workbook must be enabled in order for this functionality to execute properly. Instructions for this process are included on the first tab of each workbook. Version numbers of documents are always listed on the Key Inputs tab. The templates are available on the Division's website, on the FAST page: https://www.nj.gov/dca/dlgs/Fast.shtml Similar to prior years, DocuSign will be utilized by municipalities and counties to certify introduced and adopted budgets. Municipal Clerks are reminded that they do not need to login to FAST in order to complete their certification of the budget. Once the CFO completes their certification, the Clerk and Auditor of Record will receive an emailed link which takes them to their certification page. Also on the Division's FAST website page is an updated listing of Flexible Chart of Account codes and user guides for each FAST system module. Municipalities and counties are reminded that data entry for Annual Debt Statements is completed in FAST itself. The Annual Debt Statement module has also been updated to roll the prior year data to the current year, reducing data entry. A PDF report of the Annual Debt Statement is generated upon filing, to be used as the official copy. While currently available for data entry, Annual Debt Statements cannot be submitted until January 1, 2025. The deadline for calendar year entities to submit a Chapter 159 to the Division for 2024 is December 20, 2024. Chapter 159s, along with Chapter 85, Petty Cash, and Dedication by Rider functions, must be submitted through FAST. Paper or emailed copies of documents related to these functions will not be accepted. For technical assistance regarding FAST or any of the financial document workbooks, contact Matt Gallello at Matthew.Gallello@dca.nj.gov. |
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Updated: 01/30/2026