New Jersey Division of Local Government Services Local Finance Notice 2024-02
Local Finance Notice 2024-02 CY 2024 Municipal Levy Cap Referendum Procedure
This Local Finance Notice provides specific instruction and direction to calendar year municipalities considering holding a public referendum to exceed either the:
- Two (2) percent municipal property tax levy cap pursuant to N.J.S.A.40A:4-45.45 et seq.; or
- Two and one-half (2.5) percent appropriation cap pursuant toN.J.S.A. 40A:4-45.3 et seq.
If municipal officials are considering a levy cap referendum, this Notice should be reviewed immediately by those involved in budget preparation and elections.
Levy Cap Referendums Key Elements
1) Municipalities with Type II boards of education will hold their referendum on April 16, regardless of when their school board elections are held.
2) Municipalities that hold non-partisan elections in May and have an election for local officers this year and want to hold a levy cap referendum, will use that election date, May 14, and not the April school date,
regardless of when their school election takes place. A non-partisan municipality without an election each year will hold a levy cap referendum on the regular April school election date.
3) The first deadline municipalities considering a levy cap referendum must meet is to publish a display advertisement announcing that a referendum may be held. The deadlines are February 20 for April levy elections and March 19 for May levy elections.
4) If a municipal cap levy referendum is held at the same time as an April Type II school district election, the polls shall be open from 6:00AM until 8:00PM, and the municipality shall pay 50% of the cost of the base cost of the referendum, the cost of poll workers, and related costs for the hours that exceed the hours set by the Board of Education for the school election.
5) Referendums in State Fiscal Year municipalities will be held at the November General Election
Local Finance Notice 2024-02
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/dlgs/lfns/2024/2024-02.pdf
Contact Wielkotz & Company, LLC Today
For further information on Local Finance Notice 2024-02 and its implementation feel free to reach out to Steven Wielkotz at (973)-835-7900 ext. 201 or sdw@w-cpa.com.
