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17 -151
No. Date of Adoptio �t� 21 , 2 017
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RESOLUTION URGING THE STATE LEGISLATURE TO EXTEND
THE 2% CAP ON POLICE AND FIRE ARBITRATION CONTRACT AWARDS
WHEREAS, local municipalities require specific tools to address the rising cost of
municipal government; and
WHEREAS, in July 2010 the Governor and New Jersey State Legislature enacted a
permanent 2% cap on municipal and school board tax levies with limited exceptions that
did not include police and fire arbitration contract awards; and
WHEREAS, salary costs are a large part of the driver in the increases of local property
taxes: and
WHEREAS, in December 2010 the Legislature unanimously approved and the Governor
enacted a temporary 2% cap on police and fire arbitration contract awards in an effort to
control increasing salary costs and provide a solution to assist local governments in
keeping property taxes down and cost under control; and
WHEREAS, the December 2010 legislation included an April 1, 2014 sunset on the 2%
arbitration cap while the 2% property tax levy remained penmanent for municipalities and
school boards; and
WHEREAS, in June 2014 the Legislature unanimously approved and the Governor
enacted an extension to December 31, 2017 for the 2% arbitration cap, however, the 2%
property tax levy cap continues to remain permanent, without an exemption for police
and fire arbitration contract awards: and
WHEREAS, municipalities continue to contain costs and provide vital services to
residents within the 2% property tax levy while the New Jersey economy retrains
sluggish and taxpayers struggle to keep their homes and pay their taxes; and
WHEREAS, we recognize that this change in arbitration reform needs a longer time to
mature in order to see the benefits of the legislation and its actual impact on the cost of
local government budgets and the impact on taxpayers; and
WHEREAS, the Police and Fire Public Interest Arbitration Impact Task Force, which
was established in the December 2010 legislation, is not due to submit its final report on
its findings, recommendations until the same day of the expiration of the cap on interest
arbitration awards. December 31, 2017: and
WHEREAS, we recognize it is now time for our taxpayers to benefit directly from these
cost saving measures as many police and fire contracts will come due for negotiation
after the sunset date; and
NO. 17 -151
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WHEREAS, if the cap on interest arbitration expires while the 2% levy cap remains in
effect, municipalities will be forced to reduce or eliminate municipal services so to fund
interest arbitration awards,
NOW, THEREFORE, BE IT RESOLVED, that the Mayor and Council of the Borough
of Carteret along with the New Jersey State League of Municipalities, urge the State
Legislature to extend the 2% cap on Police and Fire Arbitration Contract Awards for 5
more years at which time the Legislature will have hard data to examine and then make a
final decision as to whether this law should be made permanent; and
BE IT FURTHER RESOLVED, that a copy of this Resolution is forwarded to the
members of the New Jersey General Assembly, the New Jersey State Senate, the
Commissioner of the Department of Labor, the Lieutenant Governor and the Governor of
the State of New Jersey and the League of Municipalities.
Adopted this 21 st day of September, 2017
and certified as a true copy of the
original on September 22, 2017.
KATHLEEN M. BARNEY, MMC
Municipal Clerk
RECORD OF COUNCIL VOTE
COUNCILMAN I VES I NO I NV I A.B. 11 COUNCILMAN IYESINO INV I A.B.
X
X - Indicate Vote AB - Absent NV - Not Voting XOR - Indicates Vote to Overrule Veto
Adopted at a meeting of the Municipal Council
� � septetiber u, 2017