LFN CY 2014 FIRE DISTRICT BUDGET INSTRUCTIONS. September 16, 2013

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1 LFN September 16, 2013 Cntact Infrmatin Directr's Office V F Lcal Gvernment Research V F Financial Regulatin and Assistance V F Lcal Finance Bard V F Lcal Management Services V F Authrity Regulatin V F Mail and Delivery 101 Suth Brad St. PO Bx 803 Trentn, New Jersey Web: Distributin Fire District Bards f Cmmissiners CY 2014 FIRE DISTRICT BUDGET INSTRUCTIONS This Lcal Finance Ntice reviews the CY 2014 Fire District budget preparatin prcess, frms, and guidance n the steps districts shuld fllw t prepare their budget. Fire District budget dcuments are nw available fr dwnlading n the Divisin f Lcal Gvernment Services web site. Users can view and dwnlad the fllwing items: Budget Excel Wrkbk, including Supplemental Schedules and Levy Cap Wrkbk (XLS) Budget Package, including certificatins, reslutins and transmittal checklist (MS Wrd) Budget Instructins/Reference Guide Budget Calendar The Divisin requires all Fire Districts t have at least ne fficial enrlled in the internet-based GvCnnect (thrugh the State s My New Jersey prtal) netwrk t receive Divisin and ther state gvernment ed infrmatin n a timely basis. District leadership shuld make sure an apprpriate individual is enrlled. Persnnel in need f access that d nt have it can cntact the GvCnnect Help Desk at egg@dca.state.nj.us r Budget Sheets and Excel Wrkbk The fllwing applies t the Excel-based budget wrkbk; the wrkbk is designed fr use with all versins f Micrsft Excel since The Divisin issued wrkbk must be used by all districts. Each budget page has its wn tab in the wrkbk. The wrkbk includes wrksheets fr the Levy Cap Calculatin and built-in links t ensure integrity f data entry. Supplemental Schedules are prvided t accunt fr Levy Cap issues. Appendices are included that display mre line items than allwed n sme budget sheets. Frmula cells are prtected t safeguard the wrkbk frm alteratin.

2 Lcal Finance Ntice September 16, 2013 Page 2 The wrkbk is designed fr Supplemental Schedules t be cmpleted first. Relevant cells n thse sheets will autmatically transfer t the Levy Cap Calculatin wrksheets, and then t Budget pages. Mre detailed infrmatin abut the levy cap is included as Appendices t this Ntice. Appendix A includes details f the cap calculatin frmula and levy cap referendum prcedures; Appendix B are tables detailing levy cap exclusins; and Appendix C is a cpy f the budget law, with new prvisins highlighted. Internet Web Site Infrmatin and Certificatin All fire districts shall maintain either an Internet website r a webpage n the municipality's Internet website. The purpse f the website r webpage shall be t prvide increased public access t the fire district's peratins and activities. NJSA 40A: requires the fllwing items as the minimum requirement fr public disclsure. A descriptin f the fire district's missin and respnsibilities Cmmencing with 2013, the budgets f at least three cnsecutive fiscal years The mst recent Cmprehensive Annual Financial Reprt (Unaudited) r similar financial infrmatin Cmmencing with Calendar Year Ending 2012, the annual audits f at least three cnsecutive fiscal years The fire district's rules, regulatins, and fficial plicy statements deemed relevant by the cmmissiners t the interests f the residents within the district Ntice psted pursuant t the "Open Public Meetings Act" fr each meeting f the bard f fire cmmissiners, setting frth the time, date, lcatin and agenda f each meeting Beginning January 1, 2013, the apprved minutes f each meeting f the bard f fire cmmissiners including all reslutins f the cmmissin and their cmmittees; fr at least three cnsecutive fiscal years The name, mailing address, electrnic mail address and phne number f every persn wh exercises day-t-day supervisin r management ver sme r all f the peratins f the fire district A list f attrneys, advisrs, cnsultants and any ther persn, firm, business, partnership, crpratin r ther rganizatin which received any remuneratin f $17,500 r mre during the preceding fiscal year fr any service whatsever rendered t the fire district but shall nt include vlunteers receiving benefits under a length f service award prgram (LOSAP) The Chairman f the Fire District will certify n the Budget Frm that the web site r web page as identified abve cmplies with the minimum statutry requirements f NJSA 40A: as listed abve.

3 Lcal Finance Ntice September 16, 2013 Page Prperty Tax Levy Cap Summary The passage f PL 2010, c 44 made substantial amendments t the riginal levy cap law that tk effect in There are several items f nte that require Fire District attentin: 1. The levy cap was decreased frm an annual increase f fur percent t tw percent and the allwable exclusins mdified (see belw). 2. The authrity t request levy cap waivers frm the Lcal Finance Bard was eliminated. Lcal cap referendums are the nly methd fr exceeding the cap beynd the frmula. 3. Creatin f Cap Banking started with CY 2011, a) banks the amunt f the difference between the maximum allwable amunt t be raised by taxatin and the actual amunt t be raised by taxatin. b) permits a district that has kept its budget under cap t add t its adjusted tax levy in any ne f the three succeeding years c) Levy cap bank certificatins are available fr the Districts t dwnlad frm the Dcument Library sectin f the GvCnnect Prtal 4. The public referendum questin t increase the amunt t be raised by taxatin by mre than the allwable adjusted tax levy requires an affirmative vte in excess f 50% f thse vting n the questin at the electin. 5. Capital apprpriatins (page 9) require a Special Meeting in 2013 t be eligible fr apprpriatin in the CY 2014 Budget. If these capital apprpriatins are being financed there must be a referendum vte in the frm f a Special Electin r a questin n the General Electin ballt, alng with apprval by the Lcal Finance Bard. A Special Electin shall be held in the same manner as the General Electin. Frms are available n ur web page t certify the results f any Special Meeting as well as a frm t certify the results f any electins. Prperty Tax Levy Cap Exclusins The fllwing items are exclusins frm the levy cap pursuant t NJSA 40A: (b): a. Increases in apprpriatins fr capital imprvements are exclusins frm the levy cap, regardless f hw they are funded. This includes year-t-year increases in debt service, capital leases, dwn payments, and Reserve fr Future Capital Outlay. The amunt f the increase is a permanent exclusin. b. Increases in pensin cntributins and accrued liability fr pensin cntributins in excess f 2%. c. Increases in health care csts in excess f 2% f the prir year cst, but nt in excess f the average percentage increase f the State Health Benefits Prgram (SHBP) as annually determined by the Divisin f Pensin and Benefits. Fr CY 2014, the SHBP increase percent is 6.6%. d. Extrardinary csts incurred by a lcal unit directly related t an emergency declared by the Gvernr.

4 Lcal Finance Ntice September 16, 2013 Page 4 Other Budget Related Requirements 1. Budget at Intrductin: The intrduced budget must be cap cmpliant and balanced upn intrductin. This means that the budget must be at r under the levy cap and prperly reflect any prpsed levy cap referendum. All required budget dcumentatin must be cnsistent with the intrduced budget. 2. Levy Cap Referendums: The budget message n Page 3 must indicate if the district plans t include a levy cap increase questin as part f its budget referendum. An intrduced budget requiring referendum questins must include separate line item apprpriatins that will be funded by the tax levy increase prpsed by the referendum. Transfers t r frm referendum line item apprpriatins are nt permitted at any time. This means that referendum line items are expended after the base line item amunt is depleted. In additin, referendum funds that are unexpended at the end f the fiscal year must be cancelled at year end, unless reserves are justified t the Divisin. The Divisin will rder the cancellatins if balances are fund during review f the fllwing year s budget, and the levy cap will be adjusted accrdingly. Treatment f Unexpended Apprpriatins: Any cancelled r unexpended apprpriatins fr exclusins r referendums will be deducted frm the adjusted levy based n the audit reprt r as nted in the budget message. 3. Grants: When grants have been awarded prir t budget intrductin, include the anticipated grant revenue in the budget alng with the crrespnding grant apprpriatin. Grants awarded subsequent t budget intrductin will be prcessed as a budget amendment either at the public hearing r at any time after final adptin as allwed by NJSA 40A: (e). 4. Capital Apprpriatins: Capital apprpriatins (page 9) require a Special Meeting in 2013 t be eligible fr apprpriatin in the CY 2014 Budget. If these capital apprpriatins are being financed there must be a referendum vte in the frm f a Special Electin r a questin n the General Electin ballt, alng with apprval by the Lcal Finance Bard. A Special Electin shall be held in the same manner as the General Electin. Frms are available n ur web page t certify the results f any Special Meeting as well as a frm t certify the results f any electins. Capital apprpriatins listed n page 9 require The date f the vter electin The percentage f affirmative vtes fr the capital items The date f Lcal Finance Bard apprval, if financing is necessary Restricted, unrestricted and/r grant revenue utilized fr capital purpses will be cnsidered in the calculatin f the Levy Cap - The District must mentin in the budget message if they plan t use unrestricted r grant revenue t purchase capital items 5. Budget Submittal and Public Hearing Dates: The statutry due date fr 2014 fire district budgets is December 17, Hwever, due t tight time cnstraints, the Divisin recmmends earlier submittal; Nvember 1. Reminder: Budgets are examined by their Public Hearing Dates, nt accrding t the date they are received. All budgets must be apprved by the Divisin befre a district can frmally adpt their budget.

5 Lcal Finance Ntice September 16, 2013 Page 5 6. Increase in Certain Shared Services Cst - Levy Cap Exclusins: The Divisin has determined that recipients f shared services may exclude frm their levy cap calculatin increases passed n by the prvider fr the general exclusins described abve. In these cases, the prvider must certify t their recipients the specific increases in service charges in their budget, the amunt passed alng t their recipients wh must budget the increases. Certificatins f shared service exclusins will be part f the recipient s budget submissin and reflected in the levy cap calculatin wrkbk (LC-4). The use f this exceptin is ptinal; prviders and recipients are nt bligated t accunt fr the exceptins if they chse nt t d s. This calculatin is reflected n Page 10B in the budget wrkbk. 7. Service Transfers: A service transfer ccurs when ne lcal unit transfers the respnsibility and the cst f funding a service t anther lcal unit r t a subrdinate agency f the lcal unit, such as a utility r authrity. In these cases, the transferring lcal unit n lnger has the respnsibility f funding the cst f the service. In these cases, there will be a levy cap base adjustment fr bth gvernment entities, prrated as necessary fr the perid f time the transfer is in effect. Fr the transferring lcal unit, the adjustment will be based n the prir year s expenditure less ffsetting revenues. Fr the prviding lcal unit, the adjustment will be the current year apprpriatin, less ffsetting revenues the prvider will receive. Shared services are nt cnsidered transferred services and will nt result in levy cap base adjustments. Service transfers and the impact n the levy cap must als be described in the lcal unit s budget message. 8. Release f Restricted Fund Balance Referendum Reslutin: Restricted Fund Balance is the accumulatin f funds that are reserved fr use as capital imprvements r as dwn payments fr fixed asset acquisitin. The amunt is shwn n Supplemental Schedule SS-2. Restricted Fund Balance shall be used exclusively fr its intended purpse. Fr certain unique circumstances, a Fire District culd have a Restricted Reserve where the intended purpse is n lnger essential. If s, a District that previusly apprpriated funds fr restricted purpses but nw finds it advisable and necessary t release these funds fr ther unrestricted purpses, a public referendum is required. This referendum questin will ask the vters t apprve the release f Restricted Fund Balance as General Unrestricted Revenue and will further request that thse funds be apprpriated in the prpsed budget as a way t prvide and maintain essential services fr the District. The District must identify the apprpriatins fr which this amunt will be used. The vte will take place in the same manner as a Levy Cap Referendum (see Appendix A fr guidelines). 9. Electin Results: Electin Results, alng with a cpy f the ballt, are submitted t the Directr within 5 days after the annual electin in February. Failure t submit will delay the certificatin f taxes t the municipality. When a discrepancy exists between the levy in the adpted budget and the levy apprved by the vters n the ballt, the Divisin will certify the lessr amunt. 10. Audit Reprt: The 12/31/2012 audit reprt was due t the Divisin by May 5, A grup affidavit accepting the audit was required at the first regular scheduled meeting after the audit was received and a synpsis f the audit was t be published thereafter. In additin, if the audit reprt includes findings, a crrective actin plan was required t be submitted t the Divisin within 45 days after receipt f the audit. Please verify that all f these

6 Lcal Finance Ntice September 16, 2013 Page 6 dcuments related t the audit were filed with the Divisin. Yur budget cannt be examined withut these dcuments. Fr Additinal Infrmatin Bureau f Authrity Regulatin staff will respnd t s (preferred) t dlgs@dca.state.nj.us, r calls t (609) with questins r need fr assistance as timely as pssible. District persnnel that are enrlled in GvCnnect shuld regularly check their fr updates r changes t budget prcedures. Other individuals can keep up n Divisin activities thrugh ur DLGS-News list serve. Apprved: Thmas H. Neff, Directr

7 Lcal Finance Ntice September 16, 2013 Page 7 APPENDIX A 1. Fire District Prperty Tax Levy Cap Levy Cap Frmula The law (NJSA 40A: thrugh 45.47) establishes a frmula that limits increases t the amunt t be raised by taxatin (tax levy) in all lcal units that raise prperty taxes (municipal, cunty and fire districts). The cre f the frmula is a tw percent increase t the previus year s tax levy which is then subject t exceptins. The frmula t calculate the levy cap is as fllws: Base Frmula Starting with the prir year Fire District Tax Levy: Deduct any ne-year exclusins: Add/deduct the net cst increase r decrease if service delivery is transferred frm ne gvernment agency t anther. Please cnsult with the Divisin fr additinal guidance if this prvisin will be used. Add tw percent (2%) f the sum f the previus steps Add t it the district tax value f added assessments as certified by the Tax Assessr based n Octber 1 added assessment tax billing. The Municipal Tax Assessr will prepare a certificatin based n the bundary f each fire district in a municipality. The Divisin f Taxatin will prvide Tax Assessrs directin n preparing and submitted this frm. Add General Exclusins: There are several general exclusins: increases in debt service and capital expenditures; weather and ther declared emergencies; pensin cntributins in excess f tw percent, and health benefit cst increases in excess f 2 percent but limited by the increase in State Health Benefit rate increases. While sme levy cap exclusins are treated as permanent add-ns, thers will nly be exclusins fr the life f the specific apprpriatin. Table 1 fllwing lists each exclusin, its explanatin, and treatment. 2. Levy Cap Referendum Questins General Infrmatin A fire district may exceed the tw percent prperty tax levy cap by a referendum questin at the annual budget referendum asking the vters t apprve an amunt that will be added t the tax levy. The cntent f the referendum becmes an immediate additin t the district s prperty tax levy and is part f the base amunt fr the fllwing year. The levy cap referendum becmes part f the annual budget referendum and is subject t prcedures set frth in the budget referendum law, NJSA 40A:14-72 & A 50% apprval is required. T place a prperty tax levy cap referendum n the budget: 1. The intrduced and apprved budget submitted t the Divisin f Lcal Gvernment Services must include and identify the specific amunts and budget line items fr which funds apprved at referendum will be used.

8 Lcal Finance Ntice September 16, 2013 Page 8 2. A budget amendment may include items t be part f a referendum questin. 3. The adpted budget cntains all amunts t be put ut fr public vte. 4. At adptin, the Bard f Cmmissiners must pass a reslutin authrizing the referendum questin. The reslutin must be in the frm f the mdel reslutin included in this Ntice. 5. The ballt must include the referendum questin and explanatry statement in the frm f the samples included in this Ntice. Public Questin [NJSA 40A: (b)] The public questin fr a cap levy referendum shall reference nly the Amunt Prpsed fr Cap Levy Referendum that is part f the calculatin f the Maximum Allwable Amunt t be Raised by Taxatin as shwn n the LC-1 frm that is part f the Fire District Budget package. The Public Questin and Interpretative Statement t be placed n the ballt shall be as fllws: Public Questin "Shall the Bard f Cmmissiners f (name and number f fire district) be authrized t adpt the (insert year) Fire District Budget, ntwithstanding that its prperty tax levy will exceed the Prperty Tax Levy Cap Maximum Allwable Amunt t be Raised by Taxatin increase limitatin by (insert percent) r (insert dllar amunt) as prvided by N.J.S.A. 40A: b. A "yes" vte will authrize the Bard f Cmmissiners f the fire district t adpt the budget that was intrduced and published. N.J.S.A. 40A: prvides a prperty tax levy cap f tw percent (2%) n the amunt f increase. This amunt can be exceeded when apprved by referendum f the vters. The fllwing are thse line items t which the increases apply: (List line items) If referendum is apprved (a yes vte) by at least 50 percent f the vters casting a vte at the referendum, the budget will be deemed adpted. A "n" vte means that the District Bard f Cmmissiners must adpt the budget within the increase limits set frth by the law. (Insert here any ther such relevant infrmatin as the Bard may wish t include in the Statement.). Cnduct f Electin The Directr f the Divisin f Lcal Gvernment Services has determined pursuant t NJSA 40A:45-47 that the plling places and electin shall be handled as part f the annual fire district electin pursuant t NJSA 40A:14-72 et seq.

9 Lcal Finance Ntice September 16, 2013 Page 9 Enabling Reslutin The referendum must be authrized by Bard f Cmmissiners reslutin. The reslutin must include the fllwing elements: A declaratin f the amunt f the increase abve the maximum allwable amunt t be raised by taxatin therwise permitted and the percentage increase ver the maximum allwable amunt the amunt represents. The apprpriatin line items and the amunt t be apprpriated fr each apprpriatin item if the vters apprve the questin and if the vters disapprve the questin The language f the ballt questin The interpretative statement fr the ballt questin Any ther infrmatin the Bard f Cmmissiners chses t include If planned at the time f intrductin, the reslutin must be apprved by a majrity f the full membership f the Bard f Cmmissiners prir t intrductin f the budget. A certified cpy f the reslutin is t be filed with the Divisin as part f the intrduced budget. If the budget is amended prir t adptin and a referendum created r amended, the reslutin must be adpted r amended as apprpriate and filed with the Divisin. The Attrney General has prvided the Divisin advice with regard t the amunt t be apprpriated in cntext f the amunts in the reslutin if the vters disapprve the questin. The advice cncludes that the infrmatin set frth in gd faith in a reslutin is designed t mre fully infrm the vters as t the questin befre them and nt t limit the discretin f the Bard f Cmmissiners in finally frmulating its budget if the referendum is rejected. This prvides the Bard flexibility t amend the budget t meet current needs if the referendum is rejected. Therefre the reslutin must reflect a gd faith effrt n the part f the Bard n its estimates f where the added spending will take place. The mdel reslutin is n the Divisin web site.

10 Lcal Finance Ntice September 16, 2013 Page 10 Statutry Exclusin APPENDIX B 2010 LEVY CAP EXCLUSIONS Applicatin and Interpretatin Ntes Capital expenditure increases Imprvements financed under Lcal Bnd Law prvisins meeting the definitin in the law nn-perating expenses with useful life f mre than 5 years All apprpriatins in the capital imprvement sectin f the budget, including, but nt limited t: Capital leases, regardless f when entered int. Capital cash apprpriatin in budget but excluding any apprpriatins that are ffset with grant revenues Deferred charges t future taxatin unfunded (where an imprvement is authrized and funding is prvided frm a budget apprpriatin in lieu f issuing debt service) Increases in capital expenditure csts that are part f a shared service agreement; pursuant t certificatins by service prvider. Capital expenditure exclusins will be treated as permanent exclusins Debt service increases All apprpriatins in the debt service sectin f the budget, including, but nt limited t: General Obligatin, full faith and credit debt Refunding bnds, regardless f purpse Bnd Anticipatin Ntes Interest n Tax Anticipatin Ntes Lcal Budget Law prtected ntes (NJSA 40A:4-75) Emergency Ntes as authrized under the Lcal Budget Law Special Emergency Ntes Debt service emergencies and dwn-payment emergencies Increases in debt service that is part f a shared service agreement; pursuant t certificatins by service prvider. Increases in debt service are treated as permanent exclusins (n reductin f base when debt is reduced, i.e., claw-back). Lcal Budget Law prtected ntes will nly be excluded fr the time the emergency is funded.

11 Lcal Finance Ntice September 16, 2013 Page 11 Statutry Exclusin Applicatin and Interpretatin Ntes Emergencies weather and declared emergencies Regulatins are expected t be prpsed shrtly t define emergencies eligible fr cap relief and will likely prvide fr the fllwing: Extrardinary csts related t an emergency frmally declared by the Gvernr f New Jersey. Examples are weather related (i.e., hurricanes, snw strms) and civil disturbances pursuant t NJSA 40A:4-46, 40A:4-53, 54, 55, et seq. Csts f emergencies that are funded thrugh shared service agreements. An emergency will nly be excluded fr the time the emergency is funded. Pensins and Health Benefits All increases in PERS, PFRS, lcal system pensin cntributins, accrued liability, early retirement, prepayment f deferred pensin bligatins, and LOSAP apprpriatins ver 2% are treated as permanent exclusins. Payments f deferred pensin bligatins are exclusins nly fr the life f the repayment; all ther increases are permanent exclusins. All increases in health insurance cverage ver 2% and belw the SHB average increase are exclusins. Increases in csts f health insurance waivers are nt treated as exclusins. Beginning with FY 2011, csts related t health insurance waivers must be reflected as a separate line item in the budget. Optinally, increases in pensin and health benefits that are part f increased csts t a shared service agreement; pursuant t certificatins by service prvider.

12 Lcal Finance Ntice September 16, 2013 Page 12 APPENDIX C 2010 Lcal Unit Levy Cap Law P.L. 2007, Chapter 62, as amended by P.L. 2008, Chapter 6 and as amended by P.L.2010, Chapter 44 (S-29 R1), apprved July 13, 2010 (Additins frm P.L. 2010, c.44 are underlined; deletins nt shwn) 40A: Definitins relative t prperty tax levy cap cncerning lcal units. Fr the purpses f sectins 9 thrugh 13 f P.L.2007, c.62 (C.40A: thrugh C.40A: and C.40A:4-45.3e): "Adjusted tax levy" means an amunt nt greater than the amunt t be raised by taxatin f the previus fiscal year, less any waivers frm a prir fiscal year required t be deducted by the Lcal Finance Bard pursuant t sectin 11 f P.L.2007, c.62 (C.40A: ), that result multiplied by 1.02, t which the sum f exclusins defined in subsectin b. f sectin 10 f P.L.2007, c.62 (C.40A: ) shall be added. "Amunt t be raised by taxatin" means the prperty tax levy set in the annual budget f a lcal unit. "Lcal unit" means a municipality, cunty, fire district, r slid waste cllectin district, but shall nt include a municipality that had a municipal purpses tax rate f $0.10 r less per $100 fr the previus tax year. "New ratables" means the prduct f the taxable value f any new cnstructin r imprvements times the tax rate f a lcal unit fr its previus tax year. (cf: P.L.2007, c.62, s.9) 40A: Cap n calculatin f adjusted tax levy by lcal unit; exclusins. 10. a. (1) In the preparatin f its budget the amunt t be raised by taxatin by a lcal unit shall nt exceed, except as prvided in paragraph (2) f this subsectin, the sum f new ratables, the adjusted tax levy, and the ttal f waivers apprved pursuant t sectin 11 f P.L.2007, c.62 (C.40A: ); prvided, hwever, that in the case f a cunty, the amunt t be raised by taxatin shall nt exceed the amunt permitted by sectin 4 f P.L.1976, c.68 (C.40A:4-45.4). (2) A lcal unit that has nt been granted apprval fr a waiver pursuant t sectin 11 f P.L.2007, c.62 (C.40A: ), may add t its adjusted tax levy in any ne f the next three succeeding years, the amunt f the difference between the maximum allwable amunt t be raised by taxatin r cunty purpses tax, as applicable, fr the current lcal budget year pursuant t paragraph (1) f this subsectin and the actual amunt t be raised by taxatin r cunty purpses tax, as applicable, fr the current lcal budget year.

13 Lcal Finance Ntice September 16, 2013 Page 13 b. The fllwing exclusins shall be added t the calculatin f the adjusted tax levy: increases in amunts required t be raised by taxatin fr capital expenditures, including debt service as defined by law; increases in pensin cntributins and accrued liability fr pensin cntributins in excess f 2.0%; increases in health care csts equal t that prtin f the actual increase in ttal health care csts fr the budget year that is in excess f 2.0% f the ttal health care csts in the prir year, but is nt in excess f the prduct f the ttal health care csts in the prir year and the average percentage increase f the State Health Benefits Prgram, P.L.1961, c.49 (C.52: et seq.), as annually determined by the Divisin f Pensins and Benefits in the Department f the Treasury; and extrardinary csts incurred by a lcal unit directly related t a declared emergency, as defined by regulatin prmulgated by the Cmmissiner f the Department f Cmmunity Affairs, in cnsultatin with the Cmmissiner f Educatin, as apprpriate. If there are n exclusins, then the amunt f the difference shall reduce the adjusted tax levy by that amunt. Any cancelled r unexpended apprpriatin fr any exclusin pursuant t this subsectin r waiver pursuant t sectin 11 f P.L.2007, c.62 (C.40A: ), als shall be deducted frm the sum f the exclusins listed in paragraphs (1) thrugh (6) r directly reduce the adjusted tax levy if there are n exclusins. (cf: P.L.2009, c.19, s.4) 40A: a Amunts raised t pay recycling tax treated as exclusin fr calculatin f adjusted tax levy. 4. Ntwithstanding the prvisins f sectin 10 f P.L.2007, c.62 (C.40A: ) t the cntrary, amunts required t be raised t pay the recycling tax impsed by sectin 4 f P.L.2007, c.311 (C.13:1E-96.5) shall be treated as an exclusin that shall be added t the calculatin f the adjusted tax levy. L.2008, c.6, s.4. 40A: Public questin submitted fr apprval t raise taxes abve the limitatin allwable. 11 a. (Deleted by amendment, P.L.2009, c.44) b. (1) The gverning bdy f a lcal unit may request apprval, thrugh a public questin submitted t the legal vters residing in its territry t increase the amunt t be raised by taxatin by mre than the allwable adjusted tax levy. Apprval shall be by an affirmative vte f in excess f 50 percent f the peple vting n the questin at the electin. The lcal unit budget prpsing the increase shall be intrduced and apprved in the manner therwise prvided fr budgets f that lcal unit at least 20 days prir t the date n which the referendum is t be held, and shall be published in the manner therwise prvided fr budgets f the lcal unit at least 12 days prir t the referendum date, unless therwise directed by the Directr f the Divisin f Lcal Gvernment Services in the Department f Cmmunity Affairs.

14 Lcal Finance Ntice September 16, 2013 Page 14 (2) The public questin t be submitted t the vters at the referendum shall state nly the amunt by which the adjusted tax levy shall be increased by mre than the therwise allwable adjusted tax levy, and the percentage rate f increase which that amunt represents ver the allwable adjusted tax levy. The public questin shall include an accmpanying explanatry statement that identifies the changes in apprpriatins r revenues that warranted the gverning bdy's decisin t ask the public questin; r, in the alternative and subject t the apprval f the Directr f the Divisin f Lcal Gvernment Services in the Department f Cmmunity Affairs, a clear and cncise narrative explanatin f the circumstances fr the increased adjusted tax levy being prpsed. (3) Unless therwise prvided pursuant t sectin 1 f P.L.1989, c.31 (C.40A:4-5.1), a referendum cnducted pursuant t this subsectin shall be held: (a) fr calendar year budgets nly n the furth Tuesday in January and the secnd Tuesday in March ther than in a year when a presidential primary electin ccurs, in which case n such electin n that date may be called; and (b) fr fiscal year budgets, nly the last Tuesday in September, r the secnd Tuesday in December; prvided, hwever, that n referendum shall be held n the same day as a referendum t exceed the schl district levy cap. (4) Any decisin f the vters rejecting an increase t the tax levy cap under this subsectin shall be final and cnclusive, and n appeal r review shall be taken therefrm and n waiver applicatin shall be made t the Lcal Finance Bard. (5) The directr is authrized t act as necessary in rder t cnslidate ballt questins and prcedures when a gverning bdy elects t hld a referendum under bth this sectin and sectin 9 f P.L.1983, c.49 (C.40A: ). 1 c. (Deleted by amendment, P.L.2010, c.44) d. The adjusted tax levy shall be increased r decreased accrdingly whenever the respnsibility and assciated cst f an activity perfrmed by a lcal unit is transferred t r frm a lcal unit, ther gvernment entity, r ther service prvider. (cf: P.L.2007, c.62, s.11) 40A: Actins taken by directr t implement prvisins cncerning cap n the prperty tax levy; rules, regulatins. 12. a. The Directr f the Divisin f Lcal Gvernment Services in the Department f Cmmunity Affairs shall take such actin as is deemed necessary and cnsistent with the intent f sectins 9 thrugh 11 f P.L.2007, c.62 (C.40A: thrugh C.40A: ) t implement its prvisins. b. The directr, in cnsultatin with the Cmmissiner f Educatin regarding referendum dates, shall prmulgate rules and regulatins t effectuate the purpses f subsectin b. f sectin 11 f P.L.2007, c.62 (C.40A: ). L.2007, c.62, s This act shall take effect immediately and shall be applicable t the next lcal budget year fllwing enactment.