Passaic administration introduces $118.7 million 2025 municipal budget; council sets Sept. 2 adoption hearing

The city of Passaic introduced its 2025 municipal budget at the July 15 City Council meeting, with Omar Garcia, the city's chief financial officer and finance director, presenting the mayor's proposed plan that would appropriate $118,671,554 for the year.

Garcia told the council the proposed budget breaks spending into salaries and wages ($52,725,000, about 44 percent), other expenses including health benefits and liability ($46,111,000, about 39 percent), pension contributions ($15,258,000, about 13 percent), debt service ($2,076,000, about 2 percent), capital improvements ($700,000, about 1 percent) and a reserve for uncollected taxes ($1,800,000, about 1 percent). "The proposed appropriations for 2025 is $118,671,554," Garcia said.

Why it matters: the budget shows sharp increases in employee health-care costs that echo a broader statewide issue. Garcia said the State Health Benefit Commission approved about a 15 percent rate increase for 2025 and that the city has seen roughly a 50 percent increase in the state health benefit premiums over three years. To offset part of the 2025 increase, the administration plans to use $500,000 from reserves; the budget as proposed uses $13.4 million of fund balance or surplus to balance revenue and appropriations.

Key numbers and impacts - Total appropriations: $118,671,554. - Amount to be raised by taxes: $79,900,080 (about 67 percent…