P.L.2017, CHAPTER 101, approved July 7, 2017

Senate, No. 956 (First Reprint)

 


An Act concerning expenses related to the consolidation of municipalities and amending N.J.S.40A:4-53 1[and P.L.2007, c.62]1.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    N.J.S.40A:4-53 is amended to read as follows:

     40A:4-53.  A local unit may adopt an ordinance authorizing special emergency appropriations for the carrying out of any of the following purposes:

     a.     Preparation of an approved tax map.

     b.    Preparation and execution of a complete program of revaluation of real property for the use of the local assessor, or of any program to update and make current any previous revaluation program when such is ordered by the county board of taxation.

     c.     Preparation of a revision and codification of its ordinances.

     d.    Engagement of special consultants for the preparation, and the preparation of a master plan or plans, when required to conform to the planning laws of the State.

     e.     Preparation of drainage maps for flood control purposes.

     f.     Preliminary engineering studies and planning necessary for the installation and construction of a sanitary sewer system.

     g.    Authorized expenses of a consolidation commission established pursuant to the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.35 et seq.) or sections 25 through 29 of the "Uniform Shared Services and Consolidation Act," [sections 1 through 35 of] P.L.2007, c.63 [(C.40A:65-1 through C.40A:65-35)] (C.40A:65-25 through C.40A:65-29).

     h.    Contractually required severance liabilities resulting from the layoff or retirement of employees.  Such liabilities shall be paid without interest and, at the sole discretion of the local unit, may be paid in equal annual installments over a period not to exceed five years.

     i.     Preparation of a sanitary or storm system map.

     j.     Liabilities incurred to the Department of Labor and Workforce Development for the reimbursement of unemployment benefits paid to former employees.

     k.    1[Non-recurring] Subject to approval by the Director of the Division of Local Government Services, non-recurring1 expenses incurred by a municipality to implement a consolidation with another municipality, or municipalities, pursuant to the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.35 et seq.); the sparsely populated municipalities law, P.L.1995, c.376 (C.40:43-66.78 et seq.); sections 25 through 29 of the "Uniform Shared Services and Consolidation Act," P.L.2007, c.63 (C.40A:65-25 through C.40A:65-29); or N.J.S.40A:7-1 et seq., in the case of a consolidation effectuated through the annexation of land comprising an entire municipality or entire municipalities, to another municipality.  1The director shall approve the ordinance if he or she determines that the non-recurring expenses are reasonable and permissible by law and that the consolidation will result in long-term savings for the municipality.1

     A copy of all ordinances or resolutions as adopted relating to special emergency appropriations shall be filed with the director.

(cf:  P.L 2015, c.95, s.39)

 

     1[2.  Section 10 of P.L.2007, c.62 (C.40A:4-45.45) is amended to read as follows

     10.  a. (1) In the preparation of its budget the amount to be raised by taxation by a local unit shall not exceed, except as provided in paragraph (2) of this subsection, the sum of new ratables, the adjusted tax levy, and the total of waivers approved pursuant to section 11 of P.L.2007, c.62 (C.40A:4-45.46); provided, however, that in the case of a county, the amount to be raised by taxation shall not exceed the amount permitted by section 4 of P.L.1976, c.68 (C.40A:4-45.4).

     (2)  A local unit that has not been granted approval for a waiver pursuant to section 11 of P.L.2007, c.62 (C.40A:4-45.46), may add to its adjusted tax levy in any one of the next three succeeding years, the amount of the difference between the maximum allowable amount to be raised by taxation or county purposes tax, as applicable, for the current local budget year pursuant to paragraph (1) of this subsection and the actual amount to be raised by taxation or county purposes tax, as applicable, for the current local budget year.

     b.  The following exclusions shall be added to the calculation of the adjusted tax levy:

     increases in amounts required to be raised by taxation for capital expenditures, including debt service as defined by law; increases in pension contributions and accrued liability for pension contributions in excess of 2.0%; increases in health care costs equal to that portion of the actual increase in total health care costs for the budget year that is in excess of 2.0% of the total health care costs in the prior year, but is not in excess of the product of the total health care costs in the prior year and the average percentage increase of the State Health Benefits Program, P.L.1961, c.49 (C.52:14-17.25 et seq.), as annually determined by the Division of Pensions and Benefits in the Department of the Treasury; [and] extraordinary costs incurred by a local unit directly related to a declared emergency, as defined by regulation promulgated by the Commissioner of the Department of Community Affairs, in consultation with the Commissioner of Education, as appropriate; and any non-recurring expenses incurred by a municipality to implement a consolidation with another municipality, or municipalities, pursuant to the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.35 et seq.); the sparsely populated municipalities law, P.L.1995, c.376 (C.40:43-66.78 et seq.); sections 25 through 29 of the "Uniform Shared Services and Consolidation Act," P.L.2007, c.63 (C.40A:65-25 through C.40A:65-29); or N.J.S.40A:7-1 et seq., in the case of a consolidation effectuated through the annexation of land comprising an entire municipality or entire municipalities, to another municipality.

     If there are no exclusions, then the amount of the difference shall reduce the adjusted tax levy by that amount.  Any cancelled or unexpended appropriation for any exclusion pursuant to this subsection or waiver pursuant to section 11 of P.L.2007, c.62 (C.40A:4-45.46), also shall be deducted from the sum of the exclusions listed in this subsection or directly reduce the adjusted tax levy if there are no exclusions.

(cf: P.L.2010, c.44, s.9)]1

 

     1[3.] 2.1  This act shall take effect immediately.

 

 

                                

 

     Authorizes special emergency appropriations for the payment of certain expenses incurred by municipalities to implement a municipal consolidation.