UCCF 4/27/17: Cap Bank

By John Bury | May 8, 2017

2017-339: Resolution to exceed the County tax levy limit and to establish a CAP Bank (N.J.S. 40A: 4-45.14).
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2 Responses to “UCCF 4/27/17: Cap Bank”

  1. Ileen Cuccaro says:

    They just never stop, if someone does not think they will spend this money given the chance they are sadly mistaken

  2. Tom Maciejewski says:

    This CAP Bank is often misused. The purpose of it was to allow counties and municipalities some flexibility for budgeting. The law requires the towns/counties to pass a resolution in order to bank the ability to use the cap in future years. The creators of this legislature thought that would be enough for towns and counties to not use this tool, knowing it would be questioned by their residency, however, as you see here the local governments just shrug the whole thing off as a “planning tool”.

    What this does is give the towns or in this case the county the right to overspend, up to 3.5% per year and to bank for up to 2 years any portion of this expenditure that they dont use.

    So if they dont use it this year they can spend the banked portions in the following years. This is above and beyond the COLA ( Cost of Living Adjustments ) already in the budgeting process.

    There is no reason for towns or counties to use this and most dont even fully understand it, but they vote it in every year.