The Municipal Clerk holds one of the most important and exacting
positions in municipal government. So important, in fact, that in
New Jersey 1) the position is a statutory one, 2) Municipal Clerks
may attain tenure in office, and 3) Municipal Clerks must achieve
certification through education and testing.
What began in 1973 as a project of self-improvement and professional
growth, the Municipal Clerks' Association established the "Registered
Municipal Clerk Concept Development Committee." It was this hard-working
group that drafted the initial legislation calling for certification.
Originally introduced as S411/A893, prefiled in 1974 as A2659, the
bill was conditionally vetoed.
For the next ten years, the Association worked with Rutgers,
the State University, to enhance educational course content and to
develop a voluntary certification program. In 1983, the Association's
"Registered Municipal Clerk Statute Implementation Committee" modified
the initial legislation and found sponsorship for A3917, prefiled
as A593, in 1984. On May 31, 1985, Governor Thomas H. Kean signed
the bill which became Chapter 174 of the Public Laws of 1985 thereby
establishing the designation of Registered Municipal Clerk.
So diverse is the role of the Municipal Clerk, encompassing
a myriad of state statutes and serving all levels of government, that
legislation was enacted in 1991 specifically designed to define the
"Core" duties of this statutory office.
[N.J.S.A. 40A:9-133.1]12/98
A.
No
person shall be appointed or reappointed as a Municipal Clerk unless
that person holds a Registered Municipal Clerk Certificate. 9/14/07
B.
Within
90 days of the occurrence of a vacancy in the office of Municipal
Clerk by reason of the departure of a registered Municipal Clerk,
the Governing Body may appoint a person who does not hold a registered
Municipal Clerk certificate to serve as Acting Municipal Clerk for
a period not to exceed one (1) year and commencing on the date of
the vacancy. Any person so appointed may, with the approval of the
Director of the Division of Local Government Services in the Department
of Community Affairs, be reappointed as Acting Municipal Clerk for
a maximum of two (2) subsequent one-year terms following the termination
of the temporary appointment. No local unit shall fill the position
of Acting Municipal Clerk for more than three (3) consecutive years.
Time served as Acting Municipal Clerk may be credited toward the experience
authorized as a substitute for the college education requirement pursuant
to section 2 of P.L.1985, c.174 (C.40A:9-133.2). Time served as Acting
Municipal Clerk may not be credited as time served as Municipal Clerk
for the purpose of acquiring tenure pursuant to section 7 of P.L.1985,
c.174 (C.40A:9-133.7). The term begins on the actual date of appointment.
9/15/10
[P.L. 1997, C. 279]
A.
In
the case of a vacancy, an appointment is made for a new term and not
for the unexpired term.
B.
(Reserved)
10/31/04; 9/14/07; 10/15/10
C.
If
an RMC has been appointed as Municipal Clerk and then vacates the
office, within ninety (90) days of the date of the vacancy, the Governing
Body can appoint a non-RMC as Acting Clerk for a one (1) year term.
10/31/04
1.
With written permission from the Director of the Division of Local
Government Services, the Governing Body may appoint an Acting Clerk
for two (2) additional one (1) year terms. 10/31/04
a.
The person being appointed for the second or third year term must
complete a questionnaire from the Division of Local Government Services.
Said questionnaire must be submitted with the letter from the Governing
Body for the Director's review. No approvals for temporary positions
will be granted without provision of these two (2) documents. [REFERENCE-October
15, 2013 GovConnect Update] 9/15/13
2.
Time served as Acting Clerk may not be credited as time served as
Municipal Clerk for the purposes of tenure.
3.
A Governing Body may not appoint someone who holds an RMC certificate
as an Acting Clerk.
D.
If
a Governing Body fails or refuses to comply with this section, the
Director may order the Governing Body to comply by a certain date
which shall afford the Governing Body a reasonable time within which
to comply.
Required for appointment as well as for application to take
the examination for certification as Registered Municipal Clerk (RMC)12/98
A.
At
least twenty-one (21) years of age.
B.
Citizen
of the United States.
C.
Of
good moral character.
D.
In
receipt of a high school diploma or an equivalent certificate accepted
by the Commissioner of Education.
E.
Completion
of at least two years of education at a college of recognized study
which can be substituted with year-for-year full-time experience or
the equivalent part-time experience in county or local government
performing duties relative to those performed by a Municipal Clerk.
10/31/04
[N.J.S.A. 40A:9-133(b)] 9/15/10
The re-appointment of an incumbent Municipal Clerk within sixty
(60) days of the expiration of the prior term shall date back to the
expiration date of the initial term (for purposes of tenure). If an
incumbent Municipal Clerk is not reappointed at the date of expiration,
it is suggested that the Municipal Clerk notify the Governing Body
of the requirement to reappoint within sixty (60) days or appoint
a new Municipal Clerk at completion of the sixty (60) days. 10/31/04
12/98
In addition to the above qualifications, the applicant must
present proof of completion of the following courses offered through
Rutgers, the State University, or similar courses offered at a college
or university approved by the Division of Local Government Services
of the Department of Community Affairs.
12/98
A.
The
Director of the Division of Local Government Services, Department
of Community Affairs, conducts examinations for certification as Registered
Municipal Clerk (RMC).
B.
All
Municipal Clerk Certificates issued pursuant to this statute shall
be renewed upon application, payment of the required fee, and verification
that the applicant has met the requirements set forth below for recertification:
C.
Nothing
in the statute shall be construed as requiring a Governing Body to
pay any of the costs an individual may incur in complying with the
requirements for obtaining or renewing a Registered Municipal Clerk
Certificate.
12/98
Application for and Issuance of Registered Municipal Clerk Certificates
(RMC)
A.
Proof
of the above shall be provided on the application forms for the examinations
in the manner as prescribed by the Director.
B.
Each
application shall be accompanied by a fee in the amount of fifty dollars
($50.00) payable to the order of the State Treasurer.
C.
Upon
successful completion of the examination, a Registered Municipal Clerk
(RMC) certificate shall be issued for a fee of fifty dollars ($50.00)
payable to the order of the State Treasurer.
12/98
A.
Terms
of Certifications:
1.
All Municipal Clerks who were issued their RMC certificates prior
to October 1, 1998 must be recertified by September 30, 2000 and every
two (2) years thereafter.
2.
All Municipal Clerks who were issued their RMC certificates after
October 1, 1998 must be recertified two (2) years from the date on
which the certificate was issued originally, and every two (2) years
thereafter.
B.
Each
applicant for renewal of a Registered Municipal Clerk Certificate
shall submit:
1.
On a form prescribed by the Director, furnish proof of having earned
at least 2.0 continuing education units in subject areas related to
the statutory duties of the Municipal Clerk and minimum contact hours
as prescribed by the Director. A continuing education unit equals
ten (10) contact hours. Contact Hours must be earned as shown in each
of the following subject areas:
10/31/04; 9/15/06; 9/15/14
a.
Elections: 2 contact hours
b.
Finance: 2 contact hours
c.
Licensing: 2 contact hours
d.
Professional Development: 2 contact hours
e.
Records: 2 contract hours
f.
Ethics: 3 contact hours
g.
The remaining seven contact hours can be earned in Information Technology,
which is optional, and/or in any of the above subject areas at the
preference of the Municipal Clerk.
|
10/31/04; 9/15/06; 9/15/14
|
2.
Payment of a fee of fifty dollars ($50) to the order of the Treasurer
of the State of New Jersey.
|
Upon submission of the above, the Director shall renew the Registered
Municipal Clerk Certificate.
|
C.
Where
the holder of a Registered Municipal Clerk Certificate has allowed
the certificate to lapse by failing to renew the Certificate, a new
application and certificate shall be required. If application is made
within six (6) months of the expiration of the Certificate, then application
may be made in the same manner as renewal by the application shall
be accompanied by the fee for a new application; provided, however,
that such application may be made in the same manner as a renewal
within twelve (12) months of the expiration of the certificate if
the Director determines that either of the following circumstances
prevents a certificate holder from earning the required continuing
education units within six (6) months of the expiration of the certificate:
[N.J.S.A. 40A:9-133.7] 10/31/04
A.
A
Registered Municipal Clerk who has served for three (3) consecutive
years and is reappointed as Municipal Clerk cannot be removed from
office except for good cause shown after a fair and impartial hearing
by the Director (or designee) of the Division of Local Government
Services. 10/31/04
B.
The
definition of good cause for removal of a Municipal Clerk may include
the failure of the Municipal Clerk to meet the continuing education
requirements set forth in the statute.
[N.J.S.A. 40A:9-165]
Determined by ordinance of the Governing Body for elective officials,
managerial, executive and confidential employees, and in some municipalities,
for all other municipal officers and employees as well.
A.
Unless the Governing Body can show good cause, it cannot deny an
increase in salary (given to all other municipal officers and employees)
to the Municipal Clerk, Tax Assessor, Chief Financial Officer or Tax
Collector.
B.
The Governing Body cannot reduce the salary of the Municipal
Clerk, Tax Assessor, Chief Financial Officer or Tax Collector unless
a similar reduction is imposed for all other municipal
officers and employees. 9/15/10
[N.J.S.A. 40A:9-133.5]
B.
The Governing Body or Chief Executive Officer of any municipality
may request a review by the Director of the practices of the Municipal
Clerk.
C.
No Certificate shall be revoked or suspended except upon a proper
hearing by the Director or his designee after due notice.
D.
If the Certificate is revoked, such person shall be removed from
office by the Director, his office declared vacant, and he shall not
be eligible to hold that office nor make application for recertification
for a period of five (5) years from the date of the revocation.
The Governing Body shall provide for the defense of any action
or legal proceeding directly related to the official duties of the
Municipal Clerk except for:
A.
A criminal proceeding instituted on behalf of the municipality.
[N.J.S.A. 40A:9-135]
A.
This position may be created by ordinance adopted by the Governing
Body. Term of appointment, compensation, power, duties and functions
are determined by the ordinance.
B.
In the absence or disability of the Municipal Clerk, the Deputy shall
have all the powers of the Municipal Clerk and shall perform the functions
and duties of the office. 10/31/05
C.
The Deputy is not covered by laws pertaining to tenure
or salary, wages and compensation for Municipal Clerks.
D.
The Governing Body of a city of the first class having a population
of not less than 240,000 persons or more than 250,000 persons according
to the 2000 federal decennial census, may appoint two (2) persons
to serve as Deputy Municipal Clerks and provide for appointments,
compensation, term, powers, duties and functions. The Governing Body
shall appoint one (1) of the Deputy Municipal Clerks to serve as Acting
Municipal Clerk during the absence or disability of the Municipal
Clerk, and that person shall have all the powers of the Municipal
Clerk and shall perform the functions and duties of that office. 10/31/05
[N.J.S.A. 40A:9-133]
A.
SECRETARY OF THE MUNICIPAL CORPORATION
B.
SECRETARY TO THE GOVERNING BODY
1.
Prepare agenda for annual Reorganization Meeting of the Governing
Body. For Governing Bodies elected for terms of office commencing
January 1, the date and time of its annual organization or reorganization
meeting shall be at 12:00 Noon on January 1, or at some other hour
on any day during the first week in January. [N.J.S.A. 40:45A-1] Terms
of office for Governing Body members elected under the Uniform Non-Partisan
Elections Law commence at 12 Noon [N.J.S.A. 40:69A-207] on July 1,
and annual organization meeting must be held on July 1 of each year.
9/15/10
3.
Prepare meeting agenda at the discretion of the Governing Body, be
present at all meetings of the Governing Body.
4.
Keep an official record of the proceedings of every meeting, retain
the original copies of all minutes, ordinances and resolutions.
5.
Process, record, file and, when necessary, advertise ordinances,
resolutions and the municipal budget.
6.
Administer and record oaths of office: 10/31/04
7.
Maintain custody of all official records not specifically handled
by other departments.
8.
Act as liaison to the public and correspondent on behalf of the Governing
Body.
C.
CHIEF ADMINISTRATIVE OFFICER OF ALL ELECTIONS held in the municipality
1.
Certify vacancies at a local level.
2.
Maintain receipt of nominating petitions and certification to the
County Clerk of local candidates nominated by petition.
3.
Exercise quasi-judicial authority in determining the validity of
petitions.
4.
Conduct the drawing for positions of candidates on the local ballot.
5.
Furnish material for local elections.
6.
Suggest polling places.
7.
Maintain receipt of election results.
8.
Certify to the County Clerk persons elected to partisan county committee
offices in each election district.
9.
Canvass the votes for and certify election of candidates for municipal
office in non-partisan local governments.
D.
CHIEF REGISTRAR OF VOTERS in the municipality
E.
ADMINISTRATIVE OFFICER with responsibilities as follows:
1.
Acceptance of applications for licenses and permits and the issuance
of licenses and permits, except where statute or municipal ordinance
has delegated that responsibility to some other municipal officer.
2.
Issue assessment search certificates.
3.
Conduct business with other municipal departments as directed by
the Governing Body.
4.
Purchase equipment and supplies when required.
5.
Maintain personnel records when required.
6.
Certify to the municipality's Bond Counsel as to the proper advertising,
filing of Supplemental Debt Statement and that no protests have been
filed with the municipality as to the adoption of bond ordinances.
9/15/19
|
Helpful tip: See reference material LFN 2013-03; New Jersey
Department of Community Affairs, Division of Local Government Services; http://www.nj.gov/dca/divisions/dlgs/resources/local_fin_notices.html
9/15/14
|
F.
RECORDS COORDINATOR AND MANAGER responsible for implementing local
archives and records retention programs as mandated.
G.
OTHER DUTIES that may be imposed by state statutes and regulations
or municipal ordinances or regulations.
The Municipal Clerk of New Jersey must continually strive for
professional developments. A number of organizations are available
to provide each Municipal Clerk with "networking" opportunities as
well as opportunity for continuing education, research services and
legislative support. All Municipal Clerks and Deputy Municipal Clerks
are encouraged to join these organizations and participate in their
sponsored activities. In addition to the three organizations listed
below, Municipal Clerks are also encouraged to join their County Municipal
Clerks' Associations.
A.
Municipal Clerks' Association of New Jersey, Inc. (MCANJ) 9/15/10;
9/15/18; 9/15/2021
MCANJ Executive Board members can be contacted through the website
at www.njclerks.org
MCANJ, whose membership is made up of NJ Municipal Clerks, Deputies,
County Clerks and Clerks of the Board of County Commissioners, sponsors
educational programs and conferences throughout the year. Working
with Rutgers University, MCANJ sponsors educational programs at the
spring and fall conferences, as well as educational seminars throughout
the year and at the annual New Jersey State League of Municipalities
Conference.
MCANJ also publishes the QUILL quarterly, which brings to its members up-to-date information regarding
education, legislative concerns of the Municipal Clerk and recent
court decisions which affect local government and the functions of
the Municipal Clerk.
In addition to the scholarship fund program for continuing education
for new and experienced Municipal Clerks, and the mentoring program
"Peer Alliance for Learning" (PAL) which provides a tremendous networking
program for new appointees, membership in MCANJ provides a much-valued
networking program for all participants.
All members of MCANJ are qualified to join this Association's
Legal Defense Fund and are encouraged to do so.
B.
International Institute of Municipal Clerks (IIMC) 9/15/10
|
8331 Utica Avenue, Suite 200
Phone: (909) 944-4162
Toll Free: (800) 251-1639
Fax: (909) 944-8454
|
www.iimc.com 10/31/04
The IIMC conducts an educational program for the international
certification of the Municipal Clerk, known as the Certified Municipal
Clerk designation (CMC). Services include a monthly newsletter, an
annual conference and publication of research reports pertinent to
the Municipal Clerk's function. In addition to IIMC's monthly publication, The News Digest, two publications should be part of the
Municipal Clerk's library - The Language of Local Government and Roll
Call, Strategy for a Professional Clerk.
C.
New Jersey State League of Municipalities 9/15/10
|
222 West State Street, Trenton, NJ 08608
Phone: (609) 695-3481
Fax: (609) 695-0151
|
www.njslom.org 9/15/06
The League serves New Jersey municipalities and local government
officials. Services include a Bureau of Municipal Information, ordinance
and code files, research services and a legislative committee which
protects the welfare of municipal government through
careful study of all bills and resolutions. The League's many publications
include New Jersey Municipalities, the League magazine.
[Relocated from Chapter 10, 10/31/04]
The following is an outline of the background and functions
of the principal municipal appointed officials.
A.
Chief Administrative Officer (C.A.O.): This
is an appointed position and although the specific title varies according
to the form of government (manager, business administrator, municipal
administrator), the C.A.O. generally coordinates the departmental
activities of the municipality. Specific powers vary by form of government
and provisions of the municipality's administrative code, but usually
include responsibilities for personnel and the purchasing system.
Many C.A.O.s hold a masters degree in public or business administration.
In some forms of government the municipal manager is the chief executive
officer (C.E.O.).
B.
Chief Financial Officer (C. F. O.): The C.F.O.
is responsible for the preparation of the Annual Financial Statement,
Annual Debt Statement, and Balance Sheet. The C.F.O. is also responsible
for all general financial matters such as budget execution, bond issuance,
investments, and revenue analysis. The person holding this position
also prepares the official municipal budget based on spending decisions
made by the business administrator, manager, mayor, and ultimately
the governing body. The position of comptroller is used to denote
the C.F.O. in the town form of government (and in some cities). The
functions are similar to the C.F.O. in other forms of government,
including budget control and all other general fiscal functions.
C.
Municipal Attorney (Corporation Counsel):
The Municipal Attorney is an appointed position carrying a one-year
term, unless otherwise provided by law. The attorney provides legal
counsel to the governing body and appointed officials. Also, in general,
the attorney defends the municipality in instances of litigation.
D.
Municipal Engineer: The Municipal Engineer
is a statutory municipal-appointed position with the individual holding
a Professional Engineer's license (P.E.) and having a civil engineering
background. Many municipalities have the Director of Public Works
hold a P.E. and, thus, serve as the Municipal Engineer.
E.
Municipal Clerk: The Municipal Clerk is a
mandatory position in every municipality. The principal duties are
maintaining minutes and records of municipal governing body meetings,
and supervising conduct of elections.
F.
Tax Collector: The Tax Collector must have
the designation of Certified Tax Collector for permanent appointment.
The Tax Collector collects taxes and other revenues. He or she also
transmits tax bills and performs an annual tax sale. The functions
of the Tax Collector are more fully described in the following section.
G.
Tax Assessor: The Tax Assessor must have the
designation of Certified Tax Assessor (C.T.A.) prior to permanent
appointment. The assessor must value all real property (commercial,
industrial, and residential property) and maintain adequate property
records. The functions of the Tax Assessor are more fully described
in the following section.
|
Method of Selection
|
Term of Office
|
Mandatory (M) or Permissive (P) Position
|
Certification Required
|
Tenure
|
Statutory Source
| |
|---|---|---|---|---|---|---|
|
Finance Officer
|
Appointed
|
4 yrs
|
M
|
Yes
|
Yes
|
40A:9-140.1
|
|
Treasurer: In General
|
Appointed
|
M
|
Yes (as CFO)
| |||
|
Comptroller Town
|
Appointed
|
3 yrs
|
P
| |||
|
Tax Collector
|
Appointed by Governing Body or CEO
|
4 yrs
|
M
|
Yes
|
Yes
|
40A:9-141 - 145.12
|
|
Tax Assessor
|
Appointed
|
4 yrs
|
M
|
Yes
|
Yes
|
40A:9-146 - 148.1
|
|
Municipal Clerk
|
Appointed
|
3 yrs
|
M
|
Yes
|
Yes
|
40A:9-133
|
|
Attorney 9/15/13
|
Appointed
|
1 yr
|
Yes*
|
No
|
40A:9-139
| |
|
Auditor 9/15/13
|
Appointed
|
1 yr
|
M
|
Yes**
|
No
|
40A:5
|
|
Engineer
|
Appointed
|
3 years unless otherwise specified by law
|
M
|
Yes
|
No
|
40A:9-140
|
|
*Must be licensed attorney
**Must be an RMA-Registered Municipal Auditor
|
Municipalities interact with numerous state agencies, which
have broad oversight powers as well as providing assistance to municipalities
and counties which impact on the policies and operations of the local
unit. The following are some of the state agencies, which interact
with municipalities and their major functions:
|
Department of Community Affairs 9/14/07
|
|
Division of Local Government Services — Financial
and Managerial Assistance 9/14/07
|
|
Division of Housing — Housing Inspection
|
|
Department of Treasury
|
|
Division of Pensions — Pension Reporting
|
|
Division of Taxation — Tax Assessment Management
|
|
Division of Elections
|
|
Division of Alcoholic Beverage Control
|
|
Legalized Games of Chance Control Commission
|
|
Division of Revenue and Enterprise Services 9/15/17
|
A.
THE DIVISION OF LOCAL GOVERNMENT SERVICES
The Division is the most active state agency on local government
financial and management functions. New Jersey has long had a system
of state supervision of local government finance under the control
of the Division of Local Government Services (DLGS).
1.
INTERNAL ORGANIZATION OF DIVISION OF LOCAL GOVERNMENT SERVICES
There is a three-bureau organization of the Division of Local
Government Services. The following are the major responsibilities
of the bureaus:
a.
Bureau of Financial Regulation and Assistance - provides fiscal oversight
and essential services in designated areas affecting the responsiveness
and accountability of local governments. These are as follows:
(1)
Financial Regulation: enforces the Local Bond Law, Local Budget
Law, and Local Fiscal Affairs Law; spot checks performance of local
audits.
(2)
Budget Assistance: assists in the preparation, development,
and control of local governments' budgets; develops standardized budget
procedures for federal and state grant programs.
(3)
Financial investigation and inspection: conducts audits of urban
aid funds; investigates confidential reports for director.
(4)
Administers the urban aid program, financial assistance to fiscally
stressed cities.
(5)
Quality Assurance (Single Audit Section) Municipalities are
required to file a single audit with the Division of Local Government
Services if the total of federal grants and/or state grants is twenty-five
thousand dollars ($25,000) or more according to NJ 87-11.
b.
Bureau of Local Management Services - provides local government units
with advisory and technical assistance on a variety of subjects, and
financial aid through several state budgeted programs. The advisory
services provided by the bureau include data processing support and
review of installations as well as public purchasing guidelines.
c.
Bureau of Authority Regulation - this bureau has responsibility for
regulating local public authorities and special districts on matters
relating to budgeting, accounting and financial reporting, as well
as review of authority contracts for privatization of water supply,
resource recovery, and waste treatment facilities to insure that an
undue financial burden is not placed on taxpayers.
2.
LOCAL FINANCE BOARD
Currently, the Local Finance Board is comprised of seven (7)
members that serve for five (5) year staggered terms.
The Local Finance Board is empowered to study the entire field
of local government, and to promulgate rules and regulations for the
interpretation and administration of state laws within the jurisdiction
of the Division of Local Government Services. The board also advises
the Director concerning the administration of the division, the exercise
of his powers, and the problems of local government. Perhaps its most
recognized responsibility is the conduct of hearings with respect
to extensions of credit for municipalities who want to exceed their
debt limit. These hearings serve to protect the public interest by
assuring that the proposed indebtedness does not exceed the capacity
of the local government to pay. The hearing is also intended to assure
that the proposed facility is relevant to the public's interest. Similarly,
the board holds hearings with respect to extensions of credit for
Type I school districts that have utilized their total debt authorization
and want to exceed the debt limit of the municipality.
Possibly the strongest power of the Local Finance Board is the
supervision of the financial affairs of municipalities which fall
under the Local Authorities Fiscal Control Law (N.J.S.A. 40A:5A-1
et seq.). This takes effect under any of the following conditions:
9/15/2022
a.
A default exists in the payment of bond obligations or notes;
b.
Payments are due and owing the state, county, school districts, or
special districts for more than two (2) years;
c.
The cash deficit of the preceding year amounts to more than four
(4%) percent of the total tax levy;
d.
The percentage of current tax collections for two (2) successive
years falls below seventy (70%) percent;
e.
The required budget appropriation for debt service on bonds and notes
exceeds twenty-five (25%) percent of the total appropriations for
operating purposes for the year just ended;
f.
A judicial determination of gross failure to comply with provisions
of the Local Bond Law, Local Budget Law or the Local Fiscal Affairs
Law which substantially jeopardizes the fiscal integrity of the municipality.
|
The Local Finance Board must also approve the creation of local
authorities, review financing of proposed projects of such authorities,
and make recommendations in respect to such project financing following
public hearing. The board may issue orders to authorities to correct
deficits or to alleviate any financial difficulties, including increasing
rates or charges, or to dissolve an authority.
|
|
The Local Finance Board regularly issues Local Finance Notices
concerning the work of the Division of Local Government Services and
the problems of local government, requirements of law and regulations,
along with recommendations for improvements. Previous reports have
dealt with such subjects as post-audit corrective action plans, local
bond law, installment payments ("pay as you go financing"), the investment
of local unit funds, surplus policy, capital budgets, the Flexible
Chart of Accounts, electronic data processing, and procurement practices
(P.L. 1999, c. 440).
|
B.
REGULATORY AND SERVICE RESPONSIBILITIES OF THE DIVISION OF LOCAL
GOVERNMENT SERVICES (DLGS) (9/15/17)
1.
The Division of Local Government Services has four (4) principal
responsibilities, as follows:
a.
Regulation of municipal, county and authority finances.
b.
Providing technical assistance to local governments and authorities
in developing and strengthening managerial planning and financial
competence.
c.
Research in local government finance and operations, including the
distribution of data.
d.
Administration of various state grant and aid programs.
2.
Regulatory functions of the division include:
a.
Annual audit performed by a registered municipal accountant. 9/14/07
b.
Review, registration and approval of cooperative purchasing systems
together with the enforcement of the Local Public Contracts Law.
c.
Examination and certification of municipal, special district and
authority budgets and amendments thereto; preparation of the budget
of any local unit whose budget has not been adopted within the time
limits prescribed by the local budget law; and preparation and supply
of forms. 9/14/07, 9/15/10
d.
Annual promulgation of maximum percentage increase allowed under
municipal "cap" law and enforcement of the law in relation to annual
budgets. 9/14/07
e.
Review of the annual financial statements. 9/14/07
f.
Review of the annual debt statement. 9/14/07
g.
Issuance of regulations and forms for the preparation of local capital
improvement program and capital budget. 9/14/07
h.
Review and approval (or disapproval) of emergency appropriation resolutions
exceeding three (3%) percent of the total current and utility operating
appropriations in the budget adopted for that year. 9/14/07
i.
Approval of applications for establishment of petty cash funds. 9/14/07
j.
Review and determination of eligibility for certain municipalities
which want to offer tax abatement or exemption for commercial/industrial
projects. 9/14/07
k.
Approve municipal deferred compensation programs. 9/14/07
l.
Approve by-laws for a joint insurance fund with another local government
unit(s) and the plan of risk management. 9/14/07
m.
Determine amount of grants or loans to municipalities eligible for
financial assistance Special Municipal Aid [N.J.S.A. 52:27BB-118-24
— N.J.S.A. 52:27D-43] 9/14/07; 9/15/10
3.
Service Functions of the division include technical and managerial
assistance as follows: 9/14/07
a.
Auditing, budgeting, accounting, purchasing, and numerous other areas
of financial management.
b.
Debt management.
c.
Computer systems and financial software packages.
d.
Interlocal Services Act.
e.
Publication of a Local Finance Notice.
f.
Joint and cooperative purchasing under the Local Public Contracts
Law.
g.
Assistance with municipal and county charter study commissions.
h.
Deferred Compensation and Self-insurance programs.
i.
Training programs for local officials.
j.
Certification of Municipal Tax Collectors, Municipal Clerks and Finance
Officers.
4.
The division also administers several direct financial aid programs.
The following is a summary of these aid programs for which the director
has the responsibility for distribution, contingent on the availability
of annual budget appropriations.
a.
Extraordinary Municipal Aid formerly the
Discretionary Aid Program): This aid program is designed to minimize
property tax increases in those municipalities that demonstrate a
clear need for additional state funds despite their efforts to provide
property tax savings for current and future budget years. Generally,
the municipality has experienced unique circumstances to warrant this
aid (N.J.S.A. 52:27D-118.35).
b.
Municipal (Urban) Aid: to maintain and improve
municipal services and to offset local property taxes. Eligibility
and aid allocations are based on various indicators of fiscal distress,
including population and population density, effective tax rate, equalized
valuation per capita, incidence of welfare recipients and public housing.
(N.J.S.A. 52:27D-178 to 181)
c.
Special Municipal Aid: provides loans, loan
guarantees and grants to help fiscally distressed cities regain their
financial stability. An eligible municipality is one qualified under
the Urban Aid Law of 1978, or under supervision of the Local Finance
Board, or one that has issued qualified bonds. The Director of the
division "is provided" broad discretion in establishing the various
factors relating to fiscal distress and determining the amount of
grants or loans within available appropriations, subject to concurrence
of the Local Finance Board.
As a condition of receiving such assistance, an eligible municipality
must implement any fiscal recovery measures recommended by the Director
with approval by the board, and the municipality must agree to management
and fiscal audit by the Director. (N.J.S.A. 52:27D-118.24 to 118.31)
9/14/07; 9/15/10
While the general laws governing the above aid programs set
forth eligibility based on various formula factors, the legislature
and the governor, by language in the annual state appropriations law,
often modify the formulas or freeze the aid allocations to municipalities
to avoid changing payments. On the other hand, the legislature has
delegated extremely broad discretion to the director of DLGS in allocating
funds under programs such as aid to distressed cities. In 1995 the
State legislature is considering combining the numerous State revenue
programs into four (4) or five (5) block grants. Known as the Consolidated
Municipal Property Tax Relief Aid, this will eliminate the necessity
of budgeting State revenues in literally dozens of categories.
C.
DIVISION OF TAXATION, DEPARTMENT OF TREASURY
It is also responsible for the supervision of property tax assessment
at the municipal, county, and state levels. 9/14/07; 9/15/13
2.
The principal property tax administrative responsibilities for the
supervision of property tax assessment are: 9/14/07; 9/15/13
a.
Direct assistance to local assessors on such matters as property
appraisal and methods of assessing unusual, complex properties. Plan
training of new assessors to deal with their responsibilities under
the law.
b.
Coordination of efforts of Assessors, County Tax Administrators and
County Boards of Taxation with those of the division, and promulgation
of uniform rules governing county tax board hearings and procedures.
c.
Operation of the state equalization program and preparation of the
annual table of equalized valuations used in the distribution of state
school aid; apportionment of county taxes among local taxing districts;
apportionment of current and/or capital costs of regional and consolidated
school districts; and apportionment of certain state aid health grants.
d.
Certifies Municipal Tax Assessor. 9/14/07
e.
Review of municipal contracts for professional revaluations and approves
same where warranted. Review includes inquiry into the financial status
of revaluation companies, as well as their competence and ability
to perform in accordance with the contract. 9/14/07
f.
Insure that all municipalities have a tax map. Examination of all
local tax maps and suggest revisions when needed. Approval of tax
maps when completed and in compliance with all requirements. ("Tax
Map Specifications" is a guide issued for municipalities in preparing
a tax map.) 9/14/07
g.
Development of data processing systems and programs for use by local
Tax Assessors and County Tax Administrators. 9/14/07
h.
Administration of law providing for payments-in-lieu of taxes to
municipalities for certain State owned tax-exempt property. 9/14/07
i.
Administration of homestead rebate law. 9/14/07
