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March 15, 2012

Re:    Two New Rule Comments by the League

Dear Mayor:

The League of Municipalities recently weighed in on two new rules proposed by the Division of Local Government Services.

The League supports proposed rule N.J.A.C. 5:30-2.5, which would allow any municipality, county, or school district to issue refunding bonds where the issuance of refunding those bonds realizes debt service savings on outstanding obligations, without prior approval of the Local Finance Board, when certain conditions are met.

The League believes that this new rule would facilitate the issuance of refunding bonds.  Previously, municipalities were required to apply to the Local Finance Board for approval of such bonds.  This extra step took time and cost municipalities money.

If you would like to comment on this rule, Submit written comments by April 21, 2012 to:

Patricia McNamara, Executive Secretary
Local Finance Board
Department of Community Affairs
PO Box 803
Trenton, NJ 08625-0803

The League also supports proposed new rules N.J.A.C. 5:30-3.9 and 5:31-2.10, which would exempt extraordinary expenses related to a declared emergency from the property tax levy cap. 

Extraordinary costs are defined as “expenditures incurred for the immediate preparation, response, recovery, and restoration of public services due to extreme weather conditions or other catastrophic events that are the subject of a gubernatorial emergency declaration, and only for that portion of costs exceeding the cost of providing services under non-emergency conditions.”

However, the League did offer one suggestion.  Currently the proposal only exempts extraordinary costs after a declaration of emergency by the governor.  We would suggest that costs incurred after a declaration of emergency by the President of the United States should also be included within this rule.

If you would like to comment on this rule, submit written comments by May 4, 2012 to:

Marc H. Pfeiffer, Deputy Director
Division of Local Government Services
Department of Community Affairs
PO Box 803
Trenton, NJ 08625-0803

If you have any questions about these proposed rules, or would like to bring a proposed rule that you believe the League should weigh in on to our attention, please do not hesitate to contact Staff Attorney Matthew Weng at 609-695-3481 ext 137, or at mweng@njslom.com.

Very truly yours,

 

William G. Dressel, Jr.
Executive Director

 

 

 

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