This bill aims to limit the diversion of funds from stormwater, water, and sewer utilities to municipal and county budgets. It amends existing laws to reduce the allowable transfer of surplus revenue from these utilities from five percent to three percent of the annual operating costs. Additionally, it modifies the provisions regarding the appropriation of undesignated funds or unreserved retained earnings held by authorities, also capping this at three percent of the authority's annual operating costs, down from five percent.

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 oversight regarding the management of funds related to these essential services.

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