The Newark Municipal Council on Tuesday approved a 2025 municipal budget package and a separate resolution cancelling certain 2024 appropriation reserves, setting a final municipal tax rate of $4 per $100 of assessed valuation.

Business Administrator Eric Pennington told the council that after final calculations the rate fell from 4.016 per $100 of assessed valuation to a flat $4. "The ultimate rate went down from 4.016 per $100 of assessed valuation to a flat $4," Pennington said. The council then voted to adopt the three budget motions (authorization, amendment and final approval) together; one member voted no.

The vote on the 2025 budget package (items 8A–C on the special meeting agenda) followed public discussion among council members about the timing of the budget, likely cost pressures from a pending revaluation and several outstanding collective bargaining agreements. Council members urged the administration to tighten expenditures and present next year’s budget earlier so the council can provide meaningful input.

Councilman Ramos praised the administration’s follow-up on inquiries but said the late introduction limited the council’s ability to offer reductions. "I do wanna say that I appreciate you following up on a lot of our inquiries. It put us in a kind of a tough position this year because the budget was introduced so late in the year," Ramos said.

Council budget chair Gonzales said the city cannot continue with the same spending pattern. "It cannot be business as usual," Gonzales said, noting that revaluation and rising salary and health care costs will require adjustments.

Pennington and council members discussed several fiscal levers the administration plans to pursue. Pennington said some appropriations were reduced by about $1 million each, which he described as lowering the tax rate by roughly one cent for each $1 million in reductions. He said the administration will pursue higher collection rates on delinquent accounts, including tax sales for chronic delinquents, and will continue aggressive enforcement against businesses operating without proper zoning or approvals.

Pennington identified specific enforcement actions in the South Ward against airport parking lots operating without appropriate zoning and permitting. He said some operators recently delivered checks totaling about $500,000 to bring accounts current but added they also must complete proper zoning and compliance. "They have to be zoned appropriately. They have to have the proper processes in place to make sure that we are collecting the revenue that we are entitled to, and we will be aggressive to shut them down," Pennington said, naming McClellan Street and Frelinghuysen Avenue as locations under scrutiny.

Council members also remarked on outstanding state loans and the city’s repayment timelines. Councilman Ramos asked for an administration briefing on strategies to repay the approximately $30 million and $20 million in state loans the city secured to address equalization issues. Pennington said the administration will prepare such a plan and provide updates.

The council also noted several pending labor negotiations that will affect future budgets, including the fire officers and nurses unions. Pennington said a small number of collective bargaining agreements remain to be finalized and that anticipated retrospective pay will appear in next year’s budget.

The meeting opened with the council taking up Resolution 7R4AS, a cancellation of commitments payable in 2024 appropriation reserves; the council adopted that resolution before moving to the budget items.

With the budget package passed, the council president called for adjournment.

Votes at a glance
- Resolution 7R4AS (cancellation of 2024 appropriation reserves): adopted (roll call recorded in meeting transcript).
- 2025 municipal budget package (8A: authorize; 8B: amend; 8C: final approval): adopted; roll call recorded with one "no" vote (Quintana).