Which entity must municipalities apply to if they seek to exceed their debt limit?

Municipalities seeking to exceed their debt limit must apply to the Division of Local Government Services (DLGS) in New Jersey. The DLGS is the key state agency responsible for overseeing local government operations and finances, including the management of municipal debt. When a municipality wishes to exceed its established debt cap, it must demonstrate justification for the request, ensuring that their financial practices remain sound and compliant with state regulations. The review process by the DLGS helps maintain fiscal responsibility and protects the interests of taxpayers by ensuring that municipalities do not take on excessive debt without proper oversight.

Other entities mentioned, such as the NJ Finance Board and NJAC, have roles in local finance and regulations but are not directly responsible for approving requests to exceed a municipality's debt limit. The Municipal Council, being part of the local government, typically enacts the budget and manages local affairs, but does not have the authority to approve debt limits without state sanction. Therefore, the application for exceeding the debt limit rightly falls under the purview of the DLGS.