New Jersey Statutes Title 40A. Municipalities and Counties 40A § 5A-20.1

a. Whenever there is available an undesignated fund balance or unreserved retained earnings held by a municipal utilities authority with a water supply operation that is being dissolved by a municipality, no more than five percent of the annual costs of operation of the authority, as set forth in the final adopted budget of the authority, may be appropriated therefrom for uses not directly related to drinking water management, unless the Local Finance Board determines that the municipality has demonstrated a need for greater than five percent based on a showing of significant fiscal distress.

b. The Local Finance Board may condition its approval for a municipality's proposal to dissolve a municipal utilities authority on the municipality's proposal to comply with subsection a. of this section.

c. This section shall not apply to a regional authority.