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Council told city will seek $15 million increase for Pequodock/McCormick water work via NJ Infrastructure Bank
Summary
Acting finance director said the city will seek an additional $15 million for work at the Pequodock and McCormick water treatment plants, to be financed through the New Jersey Infrastructure Bank with anticipated principal forgiveness of around 50%; council asked for additional debt-service and lease-cost details.
The Newark Municipal Council heard details on Sept. 3 about a proposed increase of $15 million for ongoing work at the city's Pequodock water treatment plant and related work at the McCormick water treatment plant.
"This is to amend an existing project for the Pequodock water treatment plant. There's been a need to increase due to cost overruns, and for additional work that's being done to the McCormick Water Treatment Plant. So we're looking to increase that by an additional $15,000,000," said Moen Ruizmann, acting director of finance.
Ruizmann said the funds would be borrowed through the New Jersey Infrastructure Bank (NJIB) at low or no interest and that the city expects a portion of the borrowed principal to be forgiven. "What that amount is exactly is not known, but it is anticipated to be a minimum of 50%... 50% of it to be forgiven," he said.
Council members used the presentation to press for broader fiscal context. Councilman Gonzales asked for a report showing how recent bonding and long‑term leases affect the city's debt service and future capacity to finance projects. Ruizmann and other finance staff committed to gather information on debt‑service impacts and on annual costs of long‑term leases identified by council members, including a high‑cost monthly/annual example discussed at the meeting.
The council did not take a recorded final vote on the ordinance at the premeeting; the item was presented as an ordinance on first reading and the administration indicated next steps would include applying to the NJIB and returning to council for subsequent approvals required by local finance procedures.
Ending: Finance staff said they would supply the requested debt service and lease-cost information to council members and return with further approvals after the NJIB and other required boards review the application.
