ASSEMBLY, No STATE OF NEW JERSEY. 209th LEGISLATURE PRE-FILED FOR INTRODUCTION IN THE 2000 SESSION

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1 ASSEMBLY, No. STATE OF NEW JERSEY 0th LEGISLATURE PRE-FILED FOR INTRODUCTION IN THE 000 SESSION Sponsored by: Assemblyman FRANCIS J. BLEE District (Atlantic) Assemblyman GUY R. GREGG District (Sussex, Hunterdon and Morris) Co-Sponsored by: Assemblymen Lance, LeFevre and Roberts SYNOPSIS Provides property tax relief grants for certain municipalities, appropriates $. million. CURRENT VERSION OF TEXT Introduced Pending Technical Review by Legislative Counsel.

2 A BLEE, GREGG AN ACT providing property tax relief grants for certain municipalities, supplementing Title of the Revised Statutes and making an appropriation. BE IT ENACTED by the Senate and General Assembly of the State of New Jersey:. There shall be established within the Division of Local Government Services in the Department of Community Affairs, hereinafter referred to as the division, a grant-in-aid program known as the Municipal Economy Property Tax Relief Program under which grants shall be made to municipalities in accordance with the following criteria: a. A municipal governing body shall submit its application for grant funds to the Director of the Division of Local Government Services in the Department of Community Affairs, hereinafter referred to as the director, on or before May of each year. b. The application shall include: () a request for a specific amount of money from the Municipal Economy Property Tax Relief Program; () a long range plan for achieving municipal government economies as demonstrated in a three-year budget projection; and () a copy of the municipality's budget and a statement of the municipality's property tax levy for the previous budget year, other documents included by the municipality or required by the director and an analysis of the budget demonstrating: (a) that the municipality has a legitimate need for financial assistance; (b) that the municipality has made efforts to achieve economies in government spending; (c) that the municipality has made a substantial effort to control the municipal tax rate; (d) that the municipality has implemented innovative initiatives, which need not be limited to the sharing of local government services with other municipalities, to reduce the level of local property taxation; (e) that the municipality has shown restraint in municipal spending in the previous budget year; and (f) the fiscal impact that the amount of the municipality's specific grant request would have made on its budget for the previous budget year, including the property tax savings that would have resulted from such a request for a property assessed at $0,000. c. Each county in the State shall be allocated an equal share of the total amount appropriated to the division from the Property Tax Relief Fund for the Municipal Economy Property Tax Relief Program in each State fiscal year, to be distributed by the director to municipalities in

3 A BLEE, GREGG those counties. The director shall evaluate all applications received from municipalities for property tax relief grants under the Municipal Economy Property Tax Relief Program and shall distribute grant awards to municipalities within each county based upon the director's assessment of where the grants would have the greatest impact on achieving municipal government economies, reducing the level of property taxation, and satisfying legitimate needs for financial assistance. In the event that any grant funds under the Municipal Economy Property Tax Relief Program remain undistributed after FY or after the end of any succeeding State fiscal year for which an appropriation to the division for the Municipal Economy Property Tax Relief Program has been made, there shall be established a discretionary fund, and municipalities may make application for such funds as still remain undistributed as determined by the director. Any grant funds paid from the discretionary fund shall be appropriated and expended by the municipality exclusively to reduce the property tax rate for municipal purposes as approved in its succeeding year's municipal budget. No grant funds may be used for additional or supplemental municipal government spending.. The funds that a municipality acquires pursuant to P.L., c. (C. ) (pending before the Legislature as this bill) shall be appropriated by the municipality in compliance with the "Local Budget Law," N.J.S.0A:- et seq. Notwithstanding any provisions of the "Local Budget Law," any municipality qualifying for a grant under the Municipal Economy Property Tax Relief Program pursuant to the provisions of P.L., c. (C. ) (pending before the Legislature as this bill) shall not anticipate the receipt of the amount of the State property tax relief grant revenue requested or certified to it by the director in its current year's municipal budget to fund an appropriation. Grant funds shall be allocated to municipalities after local municipal budgets are adopted.. Grant funds allocated to a municipality pursuant to section of P.L., c. (C. ) (pending before the Legislature as this bill) shall be appropriated and expended by the municipality exclusively to reduce the property tax rate for municipal purposes as approved in its succeeding year's municipal budget. No grant funds may be used for additional or supplemental municipal government spending. A Municipality shall not be eligible to receive a grant under the Municipal Economy Property Tax Relief Program for the same municipal budget year as it receives State aid pursuant to P.L. c. (C.:D-.) known as the Supplemental Municipal Property Tax Relief Act - Discretionary Aid.

4 A BLEE, GREGG Any municipality which receives a grant under section of P.L., c. (C. ) (pending before the Legislature as this bill) shall be permitted to amend its current year's municipal budget to incorporate those grant funds in its current year's municipal budget as revenue, thereby increasing its surplus revenue for the purpose of reducing its property tax requirements for its succeeding year's municipal budget by a matching amount.. There shall be established a Commission on Municipal Economy located in, but not of, the Division of Local Government Services in the Department of Community Affairs. The Commission shall be composed of five members, appointed by the Director of the Division of Local Government Services, who shall also chair the Commission. Other members of the Commission shall include: one sitting mayor of a New Jersey municipality, one sitting member of a municipal city council or commission in New Jersey, one member of the New Jersey State Legislature, and one city or township administrator serving in that capacity in New Jersey. The Division of Local Government Services shall submit to the commission the names of ten municipalities which accomplished the greatest success in achieving municipal government economies and reducing the level of property taxation. The commission shall select one municipality, out of the ten, to be recognized by the State of New Jersey as "The Most Economical Municipality in the State of New Jersey," to be highlighted as a model for other municipalities to emulate throughout the State, and to receive a grant in the amount of $0,000 which shall be subject to the requirements of section of P.L., c. (C. ) (pending before the Legislature as this bill).. The Director of the Division of Local Government Services in the Department of Community Affairs shall adopt specific regulations, pursuant to the "Administrative Procedure Act," P.L., c. (C.:B- et seq.), to govern provisions of assistance under P.L., c. (C. ) (pending before the Legislature as this bill).. There is appropriated from the Property Tax Relief Fund to the Division of Local Government Services in the Department of Community Affairs in FY : the amount of $.0 million for a Municipal Economy Property Tax Relief Program under which competitive grants shall be made to municipalities; and the amount of $0. million for the Commission on Municipal Economy to award to the municipality it selects as "The Most Economical Municipality in the State of New Jersey.". This act shall take effect immediately.

5 A BLEE, GREGG STATEMENT This bill establishes a Municipal Economy Property Tax Relief Program under which property tax relief grants are to be made to municipalities after municipal application to the Director of the Division of Local Government Services in the Department of Community Affairs for such grant funds. Specifically, the bill provides for a $.0 million appropriation in FY to establish a Municipal Economy Property Tax Relief Program. Each county in the State will be allocated an equal share of the total $.0 million amount, to be distributed to municipalities in that county. The bill also provides for a $0,000 appropriation to be allocated to the Commission on Municipal Economy to award to the municipality it selects as "The Most Economical Municipality in the State of new Jersey." The competitive grants under the Municipal Economy Property Tax Relief Program are to be made according to the following criteria: a. A municipal governing body shall submit its application for grant funds to the Director of the Division of Local Government Services in the Department of Community Affairs, hereinafter referred to as the director, on or before May of each year. b. The application shall include: () a request for a specific amount of money from the Municipal Economy Property Tax Relief Program; () a long range plan for achieving municipal government economies as demonstrated in a three-year budget projection; and () a copy of the municipality's budget and a statement of the municipality's property tax levy for the previous budget year, other documents included by the municipality or required by the director and an analysis of the budget demonstrating: (a) that the municipality has a legitimate need for financial assistance; (b) that the municipality has made efforts to achieve economies in government spending; (c) that the municipality has made a substantial effort to control the municipal tax rate; (d) that the municipality has implemented innovative initiatives, which need not be limited to the sharing of local government services with other municipalities, to reduce the level of local property taxation; (e) that the municipality has shown restraint in municipal spending in the previous budget year; and (f) the fiscal impact that the amount of the municipality's specific grant request would have made on its budget for the previous budget year, including the property tax savings that would have resulted from such a request for a property assessed at $0,000.

6 A BLEE, GREGG c. Each county in the State shall be allocated an equal share of the total amount appropriated for the Municipal Economy Property Tax Relief Program in each State fiscal year, to be distributed by the director to municipalities in those counties. The director shall evaluate all applications received from municipalities for property tax relief grants under the Municipal Economy Property Tax Relief Program and shall distribute grant awards to municipalities within each county based upon the director's assessment of where the grants would have the greatest impact on achieving municipal government economies, reducing the level of property taxation, and satisfying legitimate needs for financial assistance. In the event that any grant funds from the Municipal Economy Property Tax Relief Program remain undistributed after FY or after the end of any succeeding State fiscal year for which an appropriation for the Municipal Economy Property Tax Relief Program has been made, there shall be established a discretionary fund, and municipalities may make application for such funds as still remain undistributed as determined by the director. Any grant funds paid from the discretionary fund shall be appropriated and expended by the municipality exclusively to reduce the property tax rate for municipal purposes as approved in its succeeding year's municipal budget. No grant funds may be used for additional or supplemental municipal government spending. Further, the funds that a municipality acquires in this bill will be appropriated by the municipality in compliance with the "Local Budget Law," N.J.S.0A:- et seq. Notwithstanding any provisions of the "Local Budget Law," any municipality qualifying for a grant under the this bill will not be allowed to anticipate the receipt of the amount of the State property tax relief grant revenue requested or certified to it by the director in its current year's municipal budget to fund an appropriation. Grant funds will be allocated to municipalities after their local municipal budgets are adopted. Also, competitive grant funds allocated to a municipality pursuant to section of this bill will be appropriated and expended by the municipality exclusively to reduce the property tax rate for municipal purposes as approved in its succeeding year's municipal budget. No grant funds may be used for additional or supplemental municipal government spending. Municipalities receiving State aid pursuant to P.L. c. (C.:D-.) known as the Supplemental Municipal Property Tax Relief Act - Discretionary Aid program will not be eligible to receive property tax relief grant funds for the same municipal budget year. In addition, any municipality which receives a grant under section of this bill will be permitted to amend its current year's municipal

7 A BLEE, GREGG 0 budget to incorporate those grant funds in its current year's municipal budgets as revenue, thereby increasing its surplus revenue for the purpose of reducing its property tax requirements for its succeeding year's municipal budget by a matching amount. Lastly, the bill establishes a Commission on Municipal Economy located in, but not of, the Division of Local Government Services in the Department of Community Affairs. The Commission is to be composed of five members, appointed by the Director of the Division of Local Government Services, who will also chair the Commission. Other members of the Commission shall include: one sitting mayor of a New Jersey municipality, one sitting member of a municipal city council or commission in New Jersey, one member of the New Jersey State Legislature, and one city or township administrator serving in that capacity in New Jersey. The Division of Local Government Services is directed in the bill to submit to the commission the names of ten municipalities which accomplished the greatest success in achieving municipal government economies and reducing the level of property taxation. The commission is directed to select one municipality, out of the ten, to be recognized by the State of New Jersey as "The Most Economical Municipality in the State of New Jersey" and be highlighted as a model for other municipalities to emulate throughout the State and receive a grant in the amount of $0,000 which shall be subject to the requirements of section of this bill.

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