On Thursday, the Division of Local Government Services issued Local Finance Notice 2024-03 outlining appropriations cap relief for CY2024/SFY2025 budgets.
As we reported last week, the Local Finance Board approved the following appropriation increases in excess of 3.5% for the following CY2024/SFY2025 budget appropriations:
- Garbage and Trash Removal and Disposal: restricted to municipalities that did not utilize this exception in their CY2023/SFY2024 budgets.
- Recycling: restricted to municipalities that did not utilize this exception in their CY2023/SFY2024 budgets.
- Liability Insurance (including Property, Casualty, and Cybersecurity) and
- Worker’s Compensation Insurance.
The appropriation cap exception will be calculated using the amount of the increase over the prior year appropriation that exceeds 3.5%, which is the COLA rate.
The Division has prepared an addendum to the levy cap workbook to calculate the allowable appropriation cap exception – which goes on sheet 20 of the budget. The Division’s Municipal Budget Template has been updated to allow the selection of the following FCOA codes on Sheet 2.
We would like to thank the Division for their collaboration and commitment to helping municipalities as costs for these services continue to rapidly outpace inflation.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.