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
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