How can a municipality operating under the state fiscal year revert to a calendar fiscal year?

The correct choice indicates that a municipality operating under the state fiscal year can revert to a calendar fiscal year by applying to the Local Finance Board. This process is specifically designed for local governments to seek approval for changes in their financial management practices, and the Local Finance Board is the governing body that provides oversight and guidance in matters relating to local finance.

When a municipality wishes to transition from a state fiscal year, which typically aligns with the state's budget cycle, to a calendar year, it must adhere to certain protocols. The application to the Local Finance Board allows for a formal review of the request, ensuring that it aligns with state regulations and financial governance. This step is crucial because the local finance structure must maintain financial integrity, accountability, and compliance with state laws.

Other options, while they may seem plausible, do not represent the established procedure for this type of change. For instance, obtaining a waiver from the governor or securing permission from the state legislative body involves different processes that typically pertain to broader fiscal policies rather than specific local finance matters. Holding a public referendum could be more suitable for significant changes in governance or policy but is not the prescribed method for fiscal year changes. Thus, applying to the Local Finance Board is the appropriate and precise route for a municipality aiming