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Council amends green-infrastructure appropriation, increasing project to $800,000 amid state reimbursement plan
Summary
An ordinance to increase funding for the Clinton-Badger green infrastructure sewer project to $800,000 passed after city finance and water utility directors described cost increases driven by inflation and bid responses; state principal forgiveness was cited as the reimbursement path.
The Newark Municipal Council on March 5 amended a prior ordinance to increase the appropriation for the Green Infrastructure sewer project (Clinton and Badger Avenue triangle) to $800,000, citing construction cost increases since an earlier approval.
Benjamin Guzmanak, the city’s finance director, told the council that the project was originally approved for $450,000 but that post-pandemic inflation and cost overruns pushed the lowest responsive bid nearer to $800,000. “Therefore, we're amending the original ordinance to increase it by $350,000 for a total of $800,000,” Guzmanak said.
Kareem Madin, director of Water and Sewer Utilities, said the project is part of a principal-forgiveness program from the New Jersey Infrastructure Bank and that the state had approved the city to move forward and award the contract; the city planned to increase bonding authority to cover the revised total. Madin described the project area as the Clinton and Badger Avenue triangle.
Public commenters raised broader budget concerns about bonding and future repayments. Deborah Salters asked whether the $800,000 would be reimbursed; staff clarified the city expects state principal forgiveness and/or reimbursement under the infrastructure program once work is complete. Another speaker urged prioritizing housing bonds over smaller infrastructure notes; a separate speaker praised the water department’s work.
The council adopted the ordinance on roll call. The minutes show the vote carried with council members recorded in favor.
Why it matters: Green infrastructure projects can reduce combined-sewer overflows and flooding; cost increases and how the city finances them affect near-term budgets and long-term debt obligations. The administration said state funding mechanisms will mitigate the local fiscal burden.
What’s next: City staff will proceed with awarding the contract and seek the approved principal-forgiveness funds; the council will receive follow-up reporting on contract award and project timeline.
