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HomeMy Public PortalAboutr 17-151Yvesolutiou of th e �Orough of TarteZe#, N- 17 -151 No. Date of Adoptio �t� 21 , 2 017 n P 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 PAGE 2_ of 2 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