New Jersey Division of Local Government Services Local Finance Notice 2022-18
Wielkotz & Company
October 19, 2022
Local Finance Notice 2022-18 Calendar Year 2023 Municipal and County Budget Cap Information
- Under the 1977 cap law, municipalities and counties are prohibited from increasing their final appropriations by more than 2.5% unless action is taken by the governing body to increase their final appropriations subject to the cap to the statutorily permitted three and a half percent (3.5%).
- A municipality or county may increase the COLA percentage up to 3.5% or bank the difference between its final appropriation subject to the cap and 3.5% for up to two years.
Using the Allowable Percentage Increase
- After January 1st, a cap increase ordinance must be introduced by the governing body, and a public hearing held at least 10 days after the publication date. The ordinance takes effect immediately upon passage.
- The 1977 cap law includes a cap exception for Group Health Insurance, and the 2010 levy cap exception is for increases over 2%. The increase for CY 2023 is 19.6%, so the increase will be 19.6% for the levy cap calculation.
Local Finance Notice 2022-18
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/22/2022-18.pdf
Contact Wielkotz & Company, LLC Today
For further information on Local Finance Notice 2022-18 and its implementation feel free to reach out to Steven Wielkotz at (973)-835-7900 ext. 201 or sdw@w-cpa.com.
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