S1114

An Act concerning expenses related to the consolidation of municipalities and amending N.J.S.40A:4-53.

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.).

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. 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.

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

(cf: P.L.2010, c.46, s.1)

2. This act shall take effect immediately.

STATEMENT

This bill would authorize a municipality to adopt an ordinance authorizing special emergency appropriations for the payment of non-recurring expenses incurred by that 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.); or 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.

Under current law, special emergency appropriations are paid for through the issuance of “special emergency notes,” which must be paid off in five years. The use of special emergency appropriations, and the issuance of special emergency notes to fund the non-recurring costs and expenses associated with the consolidation process will allow consolidating municipalities to immediately begin to experience the financial savings of municipal consolidation by spreading the effect of the non-recurring costs associated with municipal consolidation over a five-year period.