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File #: 22-1105    Version: 1 Name: Resolution Calculating RUT 2022
Type: Resolution Status: Adopted
File created: 8/1/2022 In control: Finance
On agenda: 9/8/2022 Final action: 9/8/2022
Title: Dept/ Agency: Finance Action: ( ) Ratifying (X) Authorizing ( ) Amending Type of Service: Alternate Method of Calculating the Reserve for Uncollected Taxes Purpose: Requesting the consent of the Division of Local Government Services to adjust the amount of Reserve for Uncollected Taxes required to be included in the City Budget. Program Period: Budget Year 2022 Additional Information: A certified copy of this Resolution must be submitted to the Division of Local Government Services.
Sponsors: Patrick O. Council, Louise Scott-Rountree

Title

Dept/ Agency: Finance

Action: (   ) Ratifying    (X) Authorizing    (   ) Amending

Type of Service:  Alternate Method of Calculating the Reserve for Uncollected Taxes

Purpose:  Requesting the consent of the Division of Local Government Services to adjust the amount of Reserve for Uncollected Taxes required to be included in the City Budget.

Program Period: Budget Year 2022

Additional Information: A certified copy of this Resolution must be submitted to the Division of Local Government Services.

Body

                     WHEREAS, N.J.S.A. 40A:4-41, enacted into law (P.L. 2010, c. 56), provides alternate methods of calculating the Reserve for Uncollected Taxes; and

 

                     WHEREAS, for any municipality in which tax appeal judgments have been awarded to property owners from action 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., in the preceding fiscal year, the Governing Body of the municipality may elect to determine the reserve for uncollected taxes by using the average of the percentages of taxes levied which were received in cash by the last day of each of the three (3) preceding fiscal years.  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 Average Tax Levy for the years 2019, 2020 and 2021 was 95.26%; and

 

                     WHEREAS, for the year 2022 the City of Newark will use 95.25% for the Reserve for Uncollected Taxes; 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:4-41c(1).

 

                     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 Newark Municipal Council, approves that the maximum percentage to be used for the reserve for uncollected taxes in the 2022 budget is 95.26% based on N.J.S.A. 40A:4-41c(1); 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 him/her 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(1); and

 

                     BE IT FURTHER RESOLVED, that the Acting City Clerk shall upload a certified copy of this Resolution on the FAST System for the Director of the Division of Local Government Services.

 

 

STATEMENT

 

                     This legislation 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 of Newark.