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Council hears temporary emergency appropriations; administration warns of $29 million equalization funding gap
Summary
Council reviewed a set of temporary emergency appropriations including funds for hiring police officers and overtime, while the business administrator said the city is pursuing an extension and state assistance to address an approximate $29 million shortfall tied to equalization and revaluation issues.
City officials presented a package of temporary emergency appropriations and discussed the city’s still‑outstanding 2025 budget timeline and an estimated equalization shortfall.
Business Administrator Eric Pennington told the council the city had appealed a state fine and requested an extension from the New Jersey Department of Community Affairs (DCA) after missing a filing deadline. He said the administration expects to introduce a budget in mid‑July and would ask the council to meet for a special session. Pennington said some savings from health‑care changes would help offset the roughly $29 million shortfall tied to the equalization ratio and that the administration had been in discussions with the DCA and the governor’s office seeking further assistance.
Council members asked for clarity about the proposed interim tax rate in the resolution that would permit the city to issue estimated tax bills. Pennington said the administration proposed a 4.068 rate (compared with last year’s 3.803) to avoid a later “sticker shock” on third‑ and fourth‑quarter bills, and noted that the final rate could be lower once state and municipal calculations are settled. He emphasized that the rate choice reflects technical equalization allocations and the need to balance county and municipal shares of property taxes.
Council also reviewed specific temporary appropriations that were included on the agenda: funding for hiring 15 police officers, overtime to address violent crime, and temporary operating funds for the water and sewer utility until the 2025 budget is adopted. The council requested additional written details on how specific appropriations will be calculated and asked that any questions be sent to the administration before the next meeting.
Ending — follow up requested
The business administrator asked council members to provide availability for a special meeting once a formal budget is ready. He also said the administration would continue conversations with state officials concerning the equalization matter and promised to supply the council with written responses to members’ questions.
