The Newark City Council hit a snag yesterday in its efforts to pass ethics legislation that would reform the way those who do business with the city contribute money to elected officials and candidates for public office.

After failing to reach a compromise on the scope of contract and redeveloper pay-to-play reform, the measures were removed from consideration by the city council. Combined with other ethics reforms previously adopted by the city council, experts said the changes would have made Newark a national leader among municipalities in terms of reform laws.

"I didn't have the votes. We have to go back to the drawing board," said West Ward Councilman Ronald L. Rice, the primary sponsor of the reform package.

Rice said he is confident that he will be able to reach a compromise with his council colleagues and even introduce reforms that go further, such as public campaign financing.

The council and Mayor Cory Booker ran together on a platform of reforming Newark's government and Booker had signed executive orders calling on the council to pass the reforms.

The council already has approved laws that require property owners, developers and consultants dealing with the planning or zoning boards to disclose their contributions, provides for an open appointment process to various boards and bans fundraising on public property.

"What we have done as a council is historic. The fact that we are even having this discussion about reform is tremendous," Rice said.

But Harry Pozycki, chairman of the Citizens' Campaign, a statewide organization advocating campaign fundraising laws, said the efforts the council have already taken are significant, but that they should go further.

"While we applaud the council for the progress made on reform matters we find the continuing delays on the pay-to-play reform to be troubling. With a new mayor and a new council, it's important that the message be sent out that Newark is open for honest business," Pozycki said.

Booker has signed executive orders that prohibit him from accepting campaign cash from city employees and that created an Inspector General. However, Booker's executive orders only apply to the administration and not the city council. Booker spokeswoman Lupe Todd said the mayor would not comment about the council's action yesterday.

The pay-to-play reform ordinance would have limited the amount of money companies seeking city contracts could donate to candidates or election committees.

The redeveloper pay-to-play measure would have banned donations from developers who are doing business with the city. Previously, the council removed from consideration legislation that would create an office of inspector general.

Some council members were concerned that the pay-to-play legislation would put them at a disadvantage, especially given the tremendous ability of Booker to raise money from across the country and outside of Newark. Booker raised nearly $7 million for the 2006 mayoral campaign.

"I'm in a better position because of my connections outside of the city, but what about the grassroots guy? It's a matter of not cutting people out of the process," said Councilman-at-Large Donald Payne Jr.

The council already had relaxed the pay-to-play reforms by increasing the amount of money that could be legally donated in any one year and decreasing the penalty for violating the law.

Under the contract reform, the council increased to $500 from $300 the annual amount that could be donated to a candidate.

The original legislation called for a four-year ban on receiving no-bid contracts for violating the law. That was changed to a one-year suspension from receiving no-bid contracts on the first offense and a two-year ban on the second offense. The penalty changes were also made to the redeveloper pay-to-play.

East Ward Councilman Augusto Amador said he was in support of the other pay-to-play reforms but was concerned that the Inspector General could be used for political retribution.

Ethics experts have said the Inspector General is important because it serves as an enforcement agent for the reform laws.

Rice said that it's now up to the public to express their support for reform in Newark.

"We've done some good things to change the culture. This is the first step. The community needs to speak out about reform," he said.