At its December meeting, the Local Finance Board approved exceptions to the appropriations cap. Local Finance Notices (LFN) 2024-21 outlines these cap relief measures for CY2025/SFY2026 municipal budgets.
The exception applies to Garbage and Trash Removal and Disposal for increases in excess of 3.5% over last year’s appropriation. This permissive exception is restricted to those municipalities that did not utilize the exception in their CY2023 and CY2024 or SFY2024 and SFY2025 budgets.
The appropriation cap exception will be calculated using the amount of the increase over the prior year appropriation that exceeds 3.5%, which is the cost-of-living adjustment (COLA) rate. The Division has prepared an addendum to the levy cap workbook to calculate the allowable appropriation cap exception, which goes on sheet 20 of the budget documents.
The appropriation cap exception can be used up to the amount calculated in the workbook. Municipalities that utilized the Garbage and Trash Collection and Disposal exclusion in their CY2023 or CY2024/SFY2024 or SFY2025 municipal budgets cannot utilize the same exclusion in their CY2025/SFY2026 budgets.
Please share this information with your municipal finance officer.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.