Passaic County leaders outline 2025 budget strategy, set public hearing and add construction contract to consent agenda

Passaic County officials on Feb. 11 presented the county's 2025 budget framework, describing steps taken over recent years to stabilize taxes, grow reserves and fund new senior and veterans services. During the meeting the Board of County Commissioners set a public hearing on the 2025 budget and added a late contract award for site improvements at the Lindbergh Castle Carriage House Complex to the consent agenda.

County staff told the board that because federal American Rescue Plan Act funds had to be obligated by Dec. 31, 2024, the county began 2025 facing about a $30 million revenue shortfall that staff expect to address through conservative revenue assumptions, increased fund balance and continued cost controls. Officials said the county ended the previous year with roughly $113 million in fund balance, up from about $34 million in 2015.

The presentation noted a multi-year pattern the county credits for keeping the effective county tax rate lower despite rising property values: an average tax-levy increase of 0.64% over nine years and the county's fifth consecutive year at an AA1 credit rating. Staff described the larger fund balance and reserves as giving the county flexibility to respond to unexpected events, including public-health and economic uncertainty at the federal level.

Officials outlined programmatic priorities funded or advanced in the budget plan. Among the items discussed:

- Veterans and senior housing/services: the county plans to break ground within about 30 days on 65 units of senior and veterans housing and highlighted a new veterans services officer located in the county building to centralize benefits assistance.

- Up-County facilities and grant funding: the board described a $5.3 million project to create an Up-County satellite office that will house the health department, human services and a senior congregate nutrition site. Staff said the $5.3 million came from a mix of grants and trust funds including ARP money, New Jersey Department of Health grant funds, paratransit trust funds and opioid settlement proceeds; operating costs are expected to be grant-funded going forward.

- Senior services and paratransit: staff reported the county delivered about 180,000 Meals on Wheels last year, served roughly 40,000 congregate senior meals and provided approximately 31,000 paratransit trips. The county has launched a micro-transit pilot in Paterson and Clifton intended to provide lower-cost, on-demand trips within those zones and to free paratransit capacity for other rides.

- Shared services: officials described continued expansion of shared-service arrangements, noting Bloomingdale recently joined the county health officer service as the sixth municipality to participate; staff estimated Bloomingdale will save about $350,000 over 10 years.

- Parks and economic development: the county highlighted investments in parks and historic sites, including the Highlands Rail Trail, Dundee Island Park and rehabilitation work on the Vreeland House and historic courthouse. The presentation said those investments support tourism, jobs and property-value growth.

- Jail consolidation savings and liability reductions: commissioners and staff reiterated the county's decision to close the county jail and instead contract with neighboring counties for inmate housing. The presenters said that since 2020 the county has realized about $10 million in savings in the jail-related budget lines and significant reductions in operating and liability costs.

- Labor and capital procurement: the board described a project-labor policy and a Direct Hire program intended to prioritize Passaic County residents on publicly funded capital work. Staff said three contracts have been awarded under the project-labor agreement policy and that the Direct Hire approach has generated substantial savings on smaller projects, giving one example where trail cleanup was completed with county-hired labor for under $20,000 compared with a contractor quote of roughly $110,000.

Following the presentation board members asked questions and made brief comments about credit ratings, reserves and outreach to the public explaining budget priorities. A motion was made, seconded and approved to schedule a public hearing on the 2025 cap resolution and budget for March 11, 2025, at 5:30 p.m.; the board also voted to add a late resolution authorizing an award of contract to ZM Construction LLC for site improvements at the Lindbergh Castle Carriage House Complex (bid C25007) to the consent agenda.

The presentation materials and remarks emphasized the county's strategy of conservative revenue projections, targeted grant-funded investments and programs intended to maintain services without large property-tax increases. Staff said further budget hearings and the formal budget adoption process will follow the March public hearing.

This report is drawn from the Feb. 11, 2025 meeting of the Passaic County Board of County Commissioners and from presentations delivered to the board during that session.