N.J. Stat. Ann. § 54:8-16

The mayor or other chief executive officer of any city, town borough or village, the township committee of any township, and the governing body of any other municipality proceeding under this article may appoint one or more special attorneys and other necessary assistants to aid in the prosecution of these actions, but no such attorney shall be appointed in any city except with the concurrence of the city counsel or other regular legal advisor. The compensation of the special attorneys and other assistants shall be fixed in cities, boroughs and villages by the mayor or other chief executive officer, and in all other municipalities by the governing body. In all cases it shall be paid by the municipality.