Title
Dept/ Agency: Offices of Municipal Council/City Clerk
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Computation of Reserve for Uncollected Taxes
Purpose: Requesting consent of Local Government Services to allow
City to Calculate the Reserve for Uncollected Taxes required to be
included in the City Budget
Budget Year: 2017
Additional Information:
Certified copy of this resolution must be submitted to the Division of Local Government
City Clerk Note: This resolution is done on the advice of the City's Auditor
body
WHEREAS, N.J.S.A. 40A:4-41c (2), enacted into law (P.L. 2010, c. 56), provides alternate methods of calculating the Reserve for Uncollected Taxes; and
WHEREAS, one method under N.J.S.A. 40A:4-41c(2) permits the Governing Body of any municipality in which the amount of tax reductions resulting from tax appeal judgments of the County Tax Board pursuant to R.S. 54:3-21 et seq., or the State Tax Court pursuant to R.S. 54:48-1 et seq., result in tax reductions in the preceding fiscal year, may elect to calculate the current year reserve for uncollected taxes by reducing the certified tax levy of the prior year by the amount of the tax levy adjustment resulting from those judgments. Election of this choice shall be made by resolution, approved by a majority vote of the full membership of the governing body prior to the introduction of the annual budget pursuant to N.J.S.A. 40A:4-5; and
WHEREAS, the City of Newark’s Adjusted Tax Levy in 2016 was $428,980,343.81; and
WHEREAS, during 2016 the City of Newark’s Tax Levy was reduced by $2,675,309.65 in 2016 tax appeals; and
WHEREAS, the City of Newark has determined that it is advantageous for the City of Newark to utilize the method under N.J.S.A. 40A:4-41(c) (2).
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT: by a majority vote of the full membership of the Municipal Council of the City of Newark, approves that the maximum percentage to be used for the reserve for uncollected taxes in the 2017 budget is 96.34% based on N.J.S.A. 40A:4-41c (2); and
BE IT FURTHER RESOLVED, that the Director of the Division of Local Government Services in the Department of Community Affairs, be and is hereby requested to give his written consent to allow the City of Newark to compute the Reserve for Uncollected Taxes pursuant to the provisions of N.J.S.A. 40A:4-41c(2); and
BE IT FURTHER RESOLVED, that the City Clerk shall file two (2) certified copies of this resolution with the Director of the Division of Local Government Services.
STATEMENT
This resolution hereby authorizes the Municipal Council, by a majority vote of the full membership, to approve the use of an alternate method of calculating the Reserve for Uncollected Taxes which will be beneficial for the City.