What is prohibited when a municipality reverts to a calendar fiscal year?

When a municipality reverts to a calendar fiscal year, issuing bonds or notes for financing is prohibited during that transition period. This is primarily to maintain financial stability and ensure that the budgeting process aligns with the new fiscal schedule. The revision of the fiscal year can lead to changes in revenue projections, expense tracking, and overall financial management, which might be unsettled during the transition.

During this period, municipalities need to concentrate on establishing a budget that reflects their annual operations without complicating matters by increasing debt obligations through new bonds or notes. Making such financial commitments could jeopardize the municipality's ability to effectively manage its transformed fiscal framework and could lead to budgetary imbalances.

This context clarifies why the other choices are not inherently prohibited during the transition to a calendar fiscal year. For instance, increasing the municipal tax levy or potentially considering changes in appropriations may still be necessary actions for managing revenues and expenditures effectively. Collecting delinquent taxes is also a standard fiscal activity that would not cease merely because of a change in the fiscal year structure.