New Jersey Division of Local Government Services Local Finance Notice 2021-15

Tropical Storm Ida caused severe weather conditions and flooding for which Governor Murphy declared a state of emergency pursuant to Executive Order 259. This Local Finance Notice informs impacted local units of relevant post-storm financing and procurement-related matters.

Emergency Appropriations for Storm Response and Recovery

• A resolution making emergency appropriations must be approved by a two-thirds vote of the full membership of the governing body and certified by the Chief Financial Officer.
• Municipalities may use special emergency funding provisions to repair and reconstruct streets, roads, bridges, or other public property damaged by flood (or hurricane).
• Municipalities that have not adopted their budgets may use the provisions of N.J.S.A. 40A:4-20 to make emergency temporary appropriations directly associated with storm response efforts. The normal rules regarding emergencies must be followed.
• N.J.S.A. 40A:4-55.1 through 55.6 allows municipalities to finance over three years an appropriation for extraordinary expenses for the repair or reconstruction of streets, roads, or bridges damaged by flooding.
• Municipalities and counties seeking to spread emergency-related costs over a period of years must first seek Local Finance Board approval.
• In the event of a pressing need, a fire district may make emergency appropriations post-budget adoption for purposes unforeseen at the time of budget adoption, or for which adequate provision was not made.
• A Board of Fire Commissioners must adopt a resolution declaring an emergency and file the resolution immediately with the municipal governing body. The municipal governing body must approve the emergency appropriation before it takes effect.
• A fire district may finance any emergency appropriation from its available surplus funds or borrow money for a period of time not to exceed one year.

Emergency Procurement

• In circumstances where an emergency affects the public health, safety or welfare, a contract may be awarded without public bidding regardless of the bid threshold. Such contracts are exempt from Pay-to-Play due to public exigency.
• Contracting units may enter into emergency contracts without first obtaining a vendor’s or contractor’s Business Registration Certificate, but they must confirm compliance with applicable Public Works Contractor Registration and prevailing wage requirements prior to making payment for completed work.
• Local governments can access all State cooperative purchasing contracts through the Department of Treasury’s Division of Purchase and Property website.

Overtime Pay Prohibition for Elected Officials and Management

Elected officials are not entitled to reimbursement for overtime. Management employees are typically classified as having exempt status under the federal Fair Labor Standards Act and thus not entitled to overtime pay.

Local Finance Notice 2021-15

Please follow the link below to read more about these items and guidance on how your local unit can implement them:https://www.nj.gov/dca/divisions/dlgs/lfns/21/2021-15.pdf

Contact Wielkotz & Company, LLC Today

For further information on Local Finance Notice 2021-15 and its implementation feel free to reach out to Steven Wielkotz at (973)-835-7900 ext. 201 or sdw@w-cpa.com.