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HomeMy Public PortalAboutr 14-032No 14 -32 Date of Adoption F k 13 , 2014 II RESOLUTION CALLING ON THE LEGISLATURE TO NIAKE PERMANENT THE 2% CAP ON INTEREST ARBITRATION AWARDS WHEREAS, on December 21, 2010, Governor Christie signed into law reforms to the Arbitration process that took effect January 1, 2011; and WHEREAS, the reforms capped arbitration awards on economic factors to no more than 2 %, provided for random selection of arbitrators, expedited the determination of awards, required thearbitra!or to provide a written report detailing the weight accorded to each of the required considerations and expedited the appeal process; and WHEREAS, these reforms marked a dramatic change to the arbitration process and have helped municipalities to control the never- ending rise in public safety personnel costs; and WHEREAS, a key element of the reforms, capping arbitration awards on economic .factors to.uo more than 2% of the property tax levy will expire on April 1, 2014; and WHEREAS, while municipalities are statutorily limited to raise their property tax levy by no more than 2 %, with very limited. exceptions, failure to extend the 2% cap on interest arbitration awards will force municipalities throughout the State to further reduce or even eliminate crucial services, persoimel, and long - overdue infrastructure improvement projects in order to fund an arbitration award; mid WHEREAS, the 2% Interest Arbitration cap has controlled one of the largest municipal expense, public safety salaries, not only through arbitration awards but through contract negotiations; and WHEREAS, absent further action by the Legislature, any contract that expires on or after April 1, 2014, will be subject to all new procedures and requirements, EXCEPT the 2% awards cap; and WHEREAS, without those limits, arbitrators will be able to impose awards that do not acco it for the 2% limit on (lie property tax levy, which would hmmnedialely threaten funding for all outer municipal services; and WHEREAS, without the 2% cap on Interest Arbitration Awards but with the 2% cap on property tax levy local budget makers could be forced to reduce other essential municipal services to ftmd an arbitration award; NOW, THEREFORE, BE IT RESOLVED, that the Mayor and Council of the Borough of Carteret strongly urges the Legislature to permanently extend the 2% cap on interest arbitration awards prior to the April 1, 2014 sunset; and BE IT FURTHER RESOLVED, that a that a copy of this duly adopted resolution be forwarded to Senate President Stephen Sweeney, Assembly Speaker Vincent Prieto, the legislators of the Borough of Carteret's Slate Legislative representatives, Governor Clris Christie, mid fire New Jersey State League of Municipalities. Adopted this 13 day of February , 2014 • and certified as a true copy of the original on Febmary 14, 2014, KATHLEEN M. BARNEY, MMC RECORD OF COUNCIL COUNCIL,N N YES NO NV A.B. COUNCILMAN YES NO NV A.B. DIAZ X NAPI IN DDASCIO X - Indicate Vote All - Absent NV - Not Voting XOR - Indicates Vote to Ove,.Ie Veto Adopted at a meeting of the Municipal Council II F 13 2014 K ftFRK � t��