Newark manager previews FY2026 budget with $20 million general-fund gap; warns of PFAS, substation costs and possible rate hikes

City Manager Tom Coleman on Aug. 18 presented a high-level preview of the proposed fiscal 2026 operating and capital budget to the City of Newark Council, saying the city faces an approximate $20 million shortfall in the general fund and will likely need new revenue or spending reductions to maintain current service levels.

Coleman said the city is "projecting revenues of approximately a $128,000,000," while department director figures show operating expenses of about $127,600,000, leaving a structural gap that planners expect to fill with a mix of transfers, borrowing and potential rate or tax increases.

The nut graf: Coleman and budget staff told council that the shortfall stems from rising personnel and utility purchase costs, inflation on materials, the end of federal grant programs such as ARPA, weaker permit revenues tied to slower construction activity, and continuing capital needs including a planned electric substation and federally required PFAS treatment at the Curtis Water Treatment Plant.

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