Council delays budget review after members say books not delivered; public demands forensic audit amid talk of Riviera shelter and loans

Council members and administration on Sept. 4 clashed over timing and transparency in the city’s budget process after several council members said they had not received budget books in time to prepare for scheduled hearings.

Councilman Gonzales told the administration the books were not available “and we don’t have the books” and that without them he could not attend a planned Saturday budget hearing. The Business Administrator, Eric Pennington, said staff were “pulling them together” and that he would provide an update.

Why it matters: Newark’s budget and its funding choices determine property tax rates, services and how the city addresses a budget shortfall residents described as a structural deficit. Several members of the public called for independent review and accountability before additional abatements or borrowing.

Public comments and demands for audit Public commenters repeatedly urged the council to scrutinize tax abatements, agency spending and prior commitments. Key themes: - Calls for a forensic audit. Lisa Metterson Parker and others urged a forensic audit of city finances and of tax‑abated projects; Parker said the city was “broke” and accused the administration of mismanagement. - Concern over tax increases and borrowing. Several speakers referenced an overall municipal financing gap and a reported request from the administration to borrow from the state. Felicia Austin Singleton said, “We don't have a budget... We need a forensic audit before y'all do anything else in this city.” Deborah Salters and others highlighted property tax increases and asked for clarity on revenue flows. - Pressure over tax‑abated projects and Invest Newark. Commenters asked about past abatements and whether money invested through quasi‑public entities had returned to the city.

Riviera shelter and contract concerns Councilman Silva, who voted to authorize a lease/contract for the Riviera Hotel to house homeless residents and provide services, defended his vote at the meeting. Silva said the site would offer services and a path toward stabilization for people who are unsheltered in the Penn Station area. In response to concerns that the city could be unable to exit the lease, Business Administrator Eric Pennington said the agreement contains an out clause but cautioned that exiting a contract without legal cause could expose the city to litigation; he emphasized that any termination would be handled “legally and prudently.”

Budget calendar and actions - Special emergency appropriation J (public hearing set for Sept. 9) was discussed and the Council deferred some budget items; one special emergency appropriation was deferred to a later hearing. - Council members repeatedly requested the full budget books in advance; several members said they would not participate in a Saturday hearing until they had time to review materials.

Administration response BA Eric Pennington said the municipal tax rate changes were often misreported in the press and provided context: he said the municipal rate increased by about 9% while the overall tax rate change reported in some outlets overstated the number; Pennington urged the public and council to look at the 10‑year trend when judging the administration’s fiscal performance.

Ending Council members asked the administration to deliver budget books as soon as possible and scheduled follow‑up conversations. Residents who spoke said they will press for audits and accountability and signaled plans to continue public oversight at upcoming budget hearings.