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July 3, 2012

Re:       New Content on DLGS Web Site

Dear Mayor:

The Division of Local Government Service’s has posted the following new content on their website:

1.         Employee Pension Contribution Rate Increase: Pursuant to Chapter 78, P.L.
2011, Pension and Health Benefit Reform, PERS and TPAF employee pension contribution rates will increase from 6.5% to 6.64% of salary with the first paycheck on or after July 1, 2012. Details are available online at:

2.         Health Benefit Contribution Rate Increase: Chapter 78, P.L. 2011, established a four year schedule that phases in increases to employees' contributions for health benefits.  This July begins Year 2 of the phase in for employees who are not covered by a contract.  For those employees covered by a contract, the second year phase in will begin on the calendar date of the second year.  The minimum contribution by an employee is the greater of 1.5% of their base salary or the percentage of their premium.  For additional information please review our May 25 Dear Mayor Letter, LFN 2011-34 and LFN 2011-20R.  Additional details on the health benefit reforms are available online at:

3.         Proposed Regulations: The Local Finance Board is proposing amendments to N.J.A.C. 5:30-9A.3 and 5:30-9A.7, which concern the use of procurement cards and electronic funds transfers.  These proposed amendments would eliminate the monetary limit currently in place for transactions involving procurement cards and electronic funds transfers, as well as allow use of procurement cards by a County Sheriff or County Prosecutor to arrange for travel, room, and board expenses of defendants, witnesses, or experts required for matters before the courts.  The full proposal can be viewed online at:   Please submit comments by August 17, 2012 to: Patricia McNamara, Executive Secretary - Local Finance Board - Department of Community Affairs - P.O. Box 803 - Trenton, New Jersey 08625-0803

4.         Fire Commission Budgets:       Local Finance Notice 2012-11 discusses P.L. 2011 c. 153, a recently enacted law which allows a Board of Fire Commissioners to insert an additional item of revenue, accompanied by an offsetting appropriation, into an already adopted fire district budget with the approval of the Director of the Division of Local Government Services.  The law establishes a process for fire districts, similar to that of municipalities and counties, to insert special items of revenue into their budgets after the budget is adopted. 

5.         State Tax Court:          The State Tax Court has updated their website with the new report for May 2012.  You will need to reach out to your town attorney and/or assessor for copies of any stipulations that may have been taken into consideration for these judgments as they will not be listed on the report itself.  Please take note that the report is searchable by municipality.  Prior reports are available online at  For questions, please call 609-292-6858 or e-mail

Conferences / Training:

1.         NJLM Educational Foundation:          On July 12, 2012, the NJLM Educational Foundation will present "Year 4 of Economic Recovery: New Municipal Realities to Come" from 9:00 a.m. to 1:00 p.m. at the Edward J. Bloustein School of Planning and Public Policy Special Events Forum-Rutgers, the State University of New Jersey.   This half-day program will examine the current recovery in terms of jobs, housing, commercial real estate, and the implications for municipalities, and fiscal trends and how we do business going forward.  The focus audience includes mayors and elected officials at all levels of government and corporate/business leaders interested in hearing the latest on the state of the economy.  For more information on this program please visit the NJLM Educational Foundation website at or contact Suzanne Delany at or 609-695-3481, ext. 111.

2.         Historic Preservation Grant Workshop:          The New Jersey Historic Trust is now accepting applications ( for Historic Site Management Grants.  The grants are available for eligible recipients such as certified nonprofit organizations and agencies of state, county or municipal government.  Applications are due by September 20, 2012. Potential applicants and professional consultants are invited to attend an applicant workshop from 1 p.m. to 3 p.m. on July 18, 2012 at the Rutgers EcoComplex in Bordentown.  Participants may register to attend by calling (609) 984-0473 or by e-mailing njht@dca.state.nj.usa.

Recent Reminders:

1.         Newly Adopted Refunding Bond Rule: NJAC 5:30-2.5 Permits Issuance of Certain Refunding Bonds without Prior Board Approval.  The Local Finance Board adopted NJAC 5:30-2.5 at its May 9th meeting, a rule that allows municipalities, counties and school districts to issue refunding bonds without prior Board approval so long as their issuance realizes debt service savings on the outstanding obligations and certain criteria are met including filing a post-closing report with the Local Finance Board.  NJAC 5:30-2.5 is effective as of June 4, 2012, and can be accessed at   If you have additional questions about this rule adoption, please contact the Local Finance Board at 609-292-0479.

2.         The Division of Taxation has EXTENDED the filing deadlines for 2011 Property Tax Reimbursement (PTR) and Homestead Benefit applications from June 30, 2012 to October 19, 2012.  Members of the public who need assistance should be referred to the Property Tax Reimbursement Hotline at 800-882-6597 or the Homestead Benefit Hotline at 888-238-1233.

Very truly yours,


William G. Dressel, Jr.
Executive Director




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