When the governing body of any municipality shall be required by petition to submit to the voters proposed increases in salaries, wages or compensation or if the governing body shall deem it advisable to have a referendum in respect to the salaries of its members, or any other elective official, or any managerial executive or confidential employee, the governing body shall adopt an ordinance definitely fixing such salaries and the operative date. Where any such ordinance provides for salary increases, they may be made to take effect on a specified date or apportioned to be effective on different specified dates during a period not to exceed 3 years. Any such ordinance may be adopted notwithstanding a prior referendum in respect to salaries, wages or compensation.

The clerk of the municipality shall forthwith forward a certified copy of the ordinance to the officer whose duty it is to prepare the ballots for the election, notifying such officer that there is to be a vote on the question.

Such officer, in the manner and form provided by law, shall place the question upon the ballot, to be used at the election in such municipality, in substantially the following form: “Shall the salaries of the (members of the governing body, other elective officials, managerial executives, confidential employees, as designated) of (name of municipality) be fixed as follows, (amount or amounts) per annum?”

If it is proposed to reduce or increase salaries, the following form shall be used: “Shall the salaries of the (members of the governing body, other elective officials, managerial executives, confidential employees, as designated) of (name of municipality) be reduced (or increased) as follows: (members of the governing body, other elective officials, managerial executives, confidential employees, as designated) $ from $ (amount of present salary) to $ (amount of proposed or adopted salary) per annum?”

If a majority of the legal voters of the municipality voting upon such question at the election shall vote “Yes,” the salaries so adopted shall be payable to the members of the governing body or other elective officials or managerial executives or confidential employees, as the case may be, on and after the date specified in the ordinance and until again changed in the manner provided by law. The referendum vote shall be binding during the period of 2 years following such vote.

L.1971, c. 200, s. 1, eff. July 1, 1971. Amended by L.1976, c. 96, s. 2, eff. Sept. 21, 1976.