Pompton Lakes Borough Public Question 1: employee health benefit contributions (non-binding referendum)

Official plain English statement

This non-binding public question asks voters whether employees of the Borough of Pompton Lakes should contribute more than one and one-half percent (1.5%) of their annual salary toward the cost of their health benefits. Following the implementation of Chapter 78, P.L. 2011, employee health benefit contribution rates were phased in pursuant to State law. Upon completion of the statutory phase-in period, the Borough and its employee bargaining units negotiated reduced contribution levels of 1.5% of salary through collective bargaining agreements and/or adopted policies applicable to non-union employees. Pursuant to the Employee Manual, non-union employees contribute in accordance with the same contribution formula established for union employees. Due to substantial annual increases in premiums under the State Health Benefits Plan, the Borough has determined that the current employee contribution structure is financially unsustainable and has contributed to increases in municipal taxes. By way of example, an employee earning an annual salary of $75,000.00 with family health coverage currently contributes approximately $1,125.00 annually toward health benefits under the 1.5% contribution rate, compared to approximately $13,440.04 annually under the contribution levels established pursuant to Chapter 78, P.L. 2011. The Borough estimates that maintaining the current 1.5% employee contribution level increases the municipal budget by approximately $483,140.55 annually, resulting in an estimated additional cost of approximately $115.25 per year to the average residential property tax bill. The results of this referendum are advisory only and are intended to provide guidance to the Mayor and Borough Council concerning public sentiment on this issue.