March 2, 2012
By LYNDSAY CAYETANA BOUCHAL
BYRAM -- The state Department of Community Affairs doesn't believe the township's ordinance to increase its appropriations cap from 2.5 percent to 3.5 percent can be repealed by petition.
The ordinance was approved in a 3-2 vote Feb. 7; however, a committee of five petitioners submitted a petition for a referendum Monday.
"About 99 percent of the municipalities and counties pass the COLA (cost of living adjustment) ordinance to go to 3.5 percent," said Lisa Ryan, a public information officer for the Department of Community Affairs. "Even if they don't need the increase, the law requires the ordinance to be passed so the local governing unit can create the appropriation cap bank. We don't believe this is the type of ordinance that can be repealed by petition because it is part of the budget process and it would not be able to wait to November for an election to decide a result," Ryan said.
Township Manager Joe Sabatini could not comment on the issue Thursday; he is currently waiting for a response from Township Attorney Thomas Collins, who is reviewing the state requirement.
Petitioner Harvey Roseff said there is no case law on this matter after speaking with the state Division of Law Services.
"I say she's wrong," Roseff said. "If this has to be, we have spoken to our legal scholars and we'll take this to court."
"A Faulkner government allows us to challenge our local government when we think they've done something wrong," Roseff said.
Roseff and fellow petitioners Joann Smith, Eugenia Moran, Merwyn Lee and Nelson Drobness believe that increasing the township's spending limit and establishing a cap bank is not fiscally responsible.
Matthew Weng, staff attorney for the New Jersey State League of Municipalities, said municipal appropriations are limited to a 2.5 percent cap increase or the cost of living adjustment determined by the Department of Community Affairs, whichever is less. The municipality also has the option of voting to raise the spending cap to a maximum of 3.5 percent.
The appropriations cap determines how much Byram can spend, while the tax levy cap determines how much Byram can tax its residents.
On Feb. 5, the petitioners turned in their petition in support of a referendum with 420 signatures. The number required was 15 percent of voters in the last election, or 253 signatures.
Township Clerk Doris Flynn has 20 days from the submittal date to certify the petition and verify the signatures.
Should the petition be certified, the Byram Township Council would have to hold a special election at an estimated cost of $15,000 if it wanted to exceed the spending cap, Flynn confirmed. Otherwise the issue is moot, as it would not automatically be placed on the November ballot.
Weng said state statute requires that any ordinance to be voted on by the voters must be submitted at the next general or regular municipal election occurring not less than 40 days after the final date for withdrawal of the petition, provided that if no such election is to be held within 90 days the council shall provide a special election to be held not less than 40 nor more than 60 days from the final date for withdrawal of the petition.
Since 2003, Byram has unanimously voted to increase the spending cap each year as recommended by township professionals. The council has routinely approved the spending cap increase, and any unappropriated funds are retained in a cap bank to be used in case of emergencies.
Byram's appropriations that were within the cap in 2010 equated to about $8.1 million. With the 3.5 percent cap applied, appropriations totaled about $8.4 million. About $240,000 was retained in the cap bank for potential use in 2011.
In 2011, Byram's appropriations were nearly $8.4 million, about $74,000 over the 2.5 percent cap. The township then used $74,000 from the 2010 cap bank for assistance, dropping the unappropriated funds to about $165,000. An additional cap bank was created in 2011 from other unused funds, equating to another $122,000, or a total of $287,000 for potential use in 2012.
