In Re Petition for Referendum on City of Trenton Ordinance 09-02

Summary

The Supreme Court of New Jersey held that N.J.S.A. 40:62-3.1, which permits a municipality to sell a water utility serving less than five percent of its population without the usual referendum requirements, does not eliminate the public's right to challenge the ordinance by referendum under the Faulkner Act. The Court reasoned that the statute's language does not expressly preempt the referendum power and that, absent a clear legislative intent, the referendum provision must be liberally construed. A dissenting opinion argued that the statute should be read as a substitute for the referendum process and would have affirmed the lower courts.