ALLENTOWN – The Borough Council is asking the state Legislature to extend an existing 2 percent cap on police and fire arbitration contract awards for five more years.
Doing so, according to a resolution the council passed on July 18, will provide time for the Assembly and Senate to acquire data to examine and then make a final decision as to whether the 2 percent cap law should be made permanent.
In July 2010, Gov. Chris Christie and the Legislature enacted a permanent 2 percent cap on municipal and school board tax levies with limited exceptions that did not include police and fire arbitration contract awards, according to the resolution.
In December 2010, the Legislature unanimously approved and Christie enacted a temporary 2 percent cap on police and fire arbitration contract awards in an effort to control increasing salary costs and to provide a solution to assist local governments in keeping property taxes down and costs under control, according to the resolution.
The December 2010 legislation included an April 1, 2014 sunset on the 2 percent arbitration cap while the 2 percent property tax levy remained permanent for municipalities and school boards.
In June 2014, the Legislature unanimously approved and Christie enacted an extension to Dec. 31, 2017 for the 2 percent arbitration cap, however, the 2 percent property tax levy cap continues to remain permanent, without an exemption for police and fire arbitration contract awards, according to the resolution.
Allentown officials said salary costs, to a great extent, drive property tax increases and said they “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.”
Borough officials said if the cap on police and fire arbitration contract awards expires while the 2 percent tax levy cap remains in effect, they may be forced to reduce or eliminate municipal services in order to fund arbitration awards that exceed a 2 percent cap.
Given that possibility, Allentown’s council members are calling on New Jersey’s elected state representatives to extend the 2 percent cap on police and fire arbitration contract awards for five more years.
In other action on July 18, the council passed a resolution transferring membership and terms from the borough’s former Shade Tree Advisory Committee to the new Shade Tree Commission.
Residents who will serve on the Shade Tree Commission are Robert Mayer (through Dec. 31, 2017), Jason Cincotta (Dec. 31, 2018), Carla Lebentritt (Dec. 31, 2018), Robert Kline (Dec. 31, 2019), Suzanne Valpreda (Dec. 31, 2019) and alternate No. 2 Terry Brown (Dec. 31, 2021). There is a vacancy in the alternate No. 1 position for a term that will end Dec. 31, 2020.
Don Stein, who is not a borough resident, will be the Shade Tree Commission’s consultant.
