Business administrator outlines 2025 budget, cites revaluation, state loans and property tax increase

Eric Pennington, the city's business administrator, presented the mayor's recommended 2025 general fund budget to the Newark Municipal Council on Sept. 12 and described a mix of one-time and ongoing fiscal pressures that underlie the plan.

Pennington said the 2025 recommended general fund is $970,000,000 and told the council: "The 2025 general fund budget contains a property tax increase of $735.12 from 3.803 to 4.016 per $100 of assessed value over 2024 on the average residential assessment." He listed major drivers of the increase as higher pension costs, rising health insurance and debt service, and an increased Essex County tax levy.

Why it matters: Pennington and council members framed the tax change as part of a multi-year adjustment linked to an overdue property revaluation and temporary state loan arrangements. Without the loans and other measures, Pennington said the average homeowner's bill would have risen much more.

Most important facts

- Budget totals and scope: Pennington told the council the recommended 2025 general fund budget is $970,000,000. He said the city manages more than 3,800 employees and serves a population of more than 311,000 residents.

- Property tax change and drivers: Pennington described a property tax increase on the typical residential assessment and identified specific cost increases: pensions (+$15,000,000), health…