ASSEMBLY, No. 2555

STATE OF NEW JERSEY

INTRODUCED DECEMBER 9, 1996

By Assemblymen ROBERTS and ARNONE

An Act concerning special emergency appropriations by a local unit 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 a layoff of employees, when the total liability is in excess of 10 per cent of the amount to be raised by taxes for municipal purposes in the fiscal year in which the layoffs take place.

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

(cf: P.L.1980, c.105, s.9)

    2. This act shall take effect immediately, and shall be retroactive to December 1, 1996.

STATEMENT

    This bill permits a local unit to adopt an ordinance authorizing special emergency appropriations for the payment of contractually required severance liabilities resulting from a layoff of employees, when the total liability is in excess of 10 per cent of the amount to be raised by taxes for muniucipal purposes in the fiscal year in which the layoffs take place. The effect of this bill is to permit such an appropriation to be spread over several years, rather than in a single budget year, which could create a situation of fiscal distress in a local government unit.

    Under the language of the effective clause, the bill would be retroactive to December 1, 1996.

Permits special emergency appropriation ordinance for contractually required severance liabilities under certain circumstances.