The legislation, S-956, authorizes a municipality to adopt an ordinance for special emergency appropriations for the payment of non-recurring expenses related to a consolidation with another town or towns. Special emergency appropriations are paid for through “special emergency notes,” which can be paid off in five years.
Under current law, municipalities can use special emergency appropriations to pay for things like preparing an approved tax map, codifying ordinances or preparing drainage maps for flood control purposes.
Municipal consolidation is seen by many as an effective tool to reduce New Jersey’s high property taxes. This law will allow consolidating municipalities to immediately begin to experience the financial savings of municipal consolidation.
The New Jersey State League of Municipalities supports this legislation.