This bill aims to limit the diversion of funds from stormwater, water, and sewer utilities to municipal and county budgets. It reduces the maximum allowable transfer of surplus revenue from these utilities from five percent to three percent of the annual operating costs. Additionally, it lowers the appropriation limit for undesignated funds or unreserved retained earnings held by authorities created by municipalities or counties, also from five percent to three percent of the authority's annual operating costs.

Furthermore, the bill mandates that municipalities and counties must provide written notice to the Division of Local Government Services in the Department of Community Affairs whenever they transfer surplus revenue from stormwater, water, or sewer utilities, or appropriate funds from a water or sewer authority. This requirement aims to enhance transparency and accountability in the management of these funds.

Statutes affected:
Introduced: 40A:4-35.1, 40A:5A-12.1