Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)
Senator LINDA R. GREENSTEIN
District 14 (Mercer and Middlesex)
Co-Sponsored by:
Senator O'Scanlon
SYNOPSIS
Requires Local Finance Board to make certain findings prior to dissolution of municipal water authority.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the dissolution of municipal water authorities and supplementing P.L.1983, c.313 (C.40A:5A-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. In addition to the provisions of section 20 of P.L.1983, c.313 (C.40A:5A-20), the Local Finance Board shall not approve an ordinance dissolving an authority that has been established, pursuant to section 4 of P.L.1957, c.183 (C.40:14B-4), for the purposes of constructing, operating, and maintaining a water system, unless the board finds that:
(1) the municipality seeking dissolution has implemented an asset management plan for its water system, and submitted a report based on its asset management plan to the Department of Environmental Protection and to the Division of Local Government Services pursuant to subsections a. and b. of section 7 of P.L.2017, c.133 (C.58:31-7);
(2) the municipality seeking dissolution has developed a plan to dedicate funds on an annual basis to address and remediate the highest priority projects for its water system identified in the asset management plan, as required pursuant to subsection a. of section 7 of P.L.2017, c.133 (C.58:31-7); and
(3) all fund balances held by the authority shall be used by the municipality only for the purposes of its water system, and shall not be used for general municipal purposes.
b. In the case of an authority that was established by more than one municipality, the board shall not approve the dissolution of the authority unless the board finds that each municipality has met the requirements of subsection a. of this section.
c. The Local Finance Board may require a municipality to submit any information it deems appropriate for the board to make its findings pursuant to subsection a. of this section.
2. This act shall take effect immediately.
STATEMENT
This bill would require the Local Finance Board (board) to make certain findings prior to approving the dissolution of a municipal water authority.
Specifically, under the bill, the board would be prohibited from approving an ordinance to dissolve a municipal water authority unless the board finds that:
(1) the municipality seeking dissolution has implemented an asset management plan for its water system and submitted a report based on its asset management plan to the appropriate State agencies, as required pursuant to the State “Water Quality Accountability Act” (WQAA), P.L.2017, c.133 (C.58:31-1 et seq.);
(2) the municipality seeking dissolution has developed a plan to dedicate funds on an annual basis to address and remediate the highest priority projects for its water system identified in the asset management plan, as required by the WQAA; and
(3) all fund balances held by the authority will be used by the municipality only for the purposes of its water system, and not for general municipal purposes.
In the case of an authority that was established by more than one municipality, the board would be prohibited from approving the dissolution of the authority unless the board finds that each municipality seeking dissolution has met the requirements of the bill.
The requirements of this bill would be in addition to those imposed pursuant to section 20 of the “Local Authorities Fiscal Control Law,” P.L.1983, c.313 (C.40A:5A-20) concerning the dissolution of authorities by local units.