New Jersey § 40a:4-3

§ 40a:4-3.

a. Except as provided in subsection b. or c. of this section, any municipality operating under the State fiscal year as of January

1, 1997 shall continue to operate under the State fiscal year; and any municipality

which was required to change to the State fiscal year but failed to implement the

change shall continue to operate under the calendar year fiscal year. b. Any municipality may apply to the Local Finance Board for approval to convert to

the State fiscal year, and the Board shall approve the conversion if it finds it is

in the interest of the taxpayers of the municipality to change. Any municipality whose fiscal year is changed pursuant to this section shall prepare

a transition year budget to cover the period between January 1 and June 30 prior to

the beginning of its first State fiscal year. c. A municipality operating under the State fiscal year, and which has adopted an

ordinance pursuant to subsection b. of section 3 of P.L.1991, c. 75 ( C.40A:4-3.2 ) (as amended by section 2 of P.L.2008, c. 92 ), may apply to the Local Finance Board for approval to revert to a calendar fiscal

year, commencing on January 1 of the succeeding calendar year. The Board shall approve the reversion after verification that ordinances have properly

been adopted and that the municipality is poised to make a six-month transition year

budget. A municipality that reverts to a calendar fiscal year pursuant to this subsection

shall prepare a six-month transition year budget to cover the fiscal period between

July 1 and December 31 immediately prior to the beginning of the calendar fiscal year. A municipality that reverts to a calendar fiscal year pursuant to the provisions of

this section shall: (1) not issue bonds, notes or any other form of borrowing to finance that reversion; (2) limit the municipal tax levy to an amount within the lower and upper amounts calculated

by multiplying one-half the levy of the municipality for the current State fiscal

year by .95 and 1.05, unless a different amount is approved by the director. The tax collector in consultation with the chief financial officer shall compute

the estimated tax levy range for the municipality to use for the transition year; (3) limit total appropriations during the transition year budget to an amount within

the lower and upper amounts calculated by multiplying one-half the total appropriations

for the municipality for the current State fiscal year by .95 and 1.25, unless a different

amount is approved by the director. The chief financial officer shall compute the estimated total appropriations range

for the municipality to use for the transition year.