When adopting a State Fiscal Year, what action does a municipality need to take?

When a municipality decides to adopt a State Fiscal Year, it is required to adopt an ordinance. This process ensures that the change in the fiscal year aligns with statutory requirements and is officially codified within the municipality's governance framework. Adopting an ordinance provides the necessary legal authority and public acknowledgment of the change in the fiscal year, allowing for consistent budgetary planning and financial reporting aligned with the State's fiscal year.

This action is crucial because it not only establishes the fiscal year for financial operations but also ensures transparency and compliance with local and state regulations. Ordinances typically undergo a more formal adoption process compared to resolutions, which may be used for less formal or temporary actions, emphasizing the significance of the fiscal year change.

Decisions like these involve careful consideration of the municipality's financial practices and alignment with State guidelines, reinforcing the municipality's accountability to its constituents while meeting statutory obligations.