New Jersey § 52:27bbb-27

§ 52:27bbb-27.

a. During the rehabilitation term, the chief operating officer shall not increase

the municipal portion of the general tax rate over the rate established for the year

during which the rehabilitation took effect. During the economic recovery term, the governing body of the qualified municipality

may only increase the municipal tax levy by three percent per year, notwithstanding

the spending limitations set forth in P.L.1976, c. 68 ( C.40A:4-45.1 et seq. ) and the limitations on increases to the tax levy pursuant to sections 9 through

13 of P.L.2007, c. 62 ( C.40A:4-45.44 through C.40A:4-45.47 and C.40A:4-45.3e ), except upon application by the mayor of the qualified municipality to the Local

Finance Board for authorization. b. The chief operating officer shall, in consultation with the mayor, annually prepare

a budget pursuant to the provisions of the “Local Budget Law,” N.J.S.40A:4-1 et seq. This budget shall conform in all respects with the requirements of the “Local Budget

Law,” N.J.S.40A:4-1 et seq. and shall be subject to the limitations on spending by municipalities set forth in

P.L.1976, c. 68 ( C.40A:4-45.1 et seq. ). The Local Finance Board may grant exceptions to the spending limitations set forth

in P.L.1976, c. 68 ( C.40A:4-45.1 et seq. ) upon application by the chief operating officer, if the Local Finance Board finds

such exceptions to be necessary for the rehabilitation of the municipality. c. Upon the preparation of the budget during the rehabilitation term , the chief operating officer, in consultation with the mayor, shall fix: a date,

place and time for the holding of a public hearing upon the budget; the amounts of

money necessary to be appropriated for the use of the municipality for the ensuing

year; and the various items and purposes for which the same are to be appropriated. The hearing shall be held in accordance with the provisions of the “Local Budget

Law,” N.J.S.40A:4-1 et seq. ; however, the hearing shall be held at least 28 days after the date on which the

budget is advertised. Notice of hearing, contents of the notice and the format and purpose of the hearing

shall be as provided in that law. As part of the budget request, the chief operating officer may include provision

for anticipation of rehabilitation aid if other revenues are insufficient to meet

the revenues needed to offset total appropriations. d. Following the hearing or hearings on the budget pursuant to subsection c. of this section , the governing body shall vote upon the proposed budget. Failure to adopt the budget shall be communicated to the chief operating officer

along with the reasons for each line item that is rejected. If the chief operating officer does not approve those alternatives proposed by the

governing body, any disputed line item shall be considered an impasse and subject

to the dispute resolution process set forth in section 5 of P.L.2002, c. 43 ( C.52:27BBB-5 ). e. If the budget proposed by the chief operating officer includes a provision for

rehabilitation aid, the chief operating officer shall apply to the director for approval

of the amount and shall supply the director with documentation justifying the need. The director shall then recommend an amount to the State Treasurer. The treasurer, after consideration of the recommendation, shall determine the amount

of the rehabilitation aid to be requested. f. During the period that the municipality is under rehabilitation and economic recovery,

the commissioner shall ensure that those appropriations in the municipal budget necessary

for the improvement of internal audit mechanisms and controls are present on an annual

basis.