City officials told the Newark Municipal Council at its Jan. 6 pre-meeting that the city must declare an emergency temporary appropriation to account for a $30 million loan and pursue refunding bonds to repay the state.

"The first item ... is for the amount of $30,000,000," Finance Director Guzman said, describing a 2025 loan tied to the county tax levy with a payment date of March 3, 2026. He said the appropriation would allow the city to budget the liability during the temporary budget period and that an ordinance to issue refunding bonds would allow the city to sell notes in the market to fund the appropriation and repay the state. Guzman also said the city plans to submit applications to the local finance board; that board meets Feb. 12, he noted.

Business Administrator Eric Pennington said the administration still prefers selling high-value city properties to reduce the balance, but acknowledged the time pressure. "The strategy has not changed. We still intend to sell high value properties, but we need to make sure that we have a fallback position," Pennington said, adding that the debt's March due date creates urgency.

Council members asked for clarification about the repayment approach and whether selling assets remains the primary plan rather than borrowing. Staff said the three-part approach being advanced as added starters includes (1) declaring the emergency temporary appropriation, (2) advancing a refunding-bond ordinance to the market, and (3) applying to the local finance board for approval.

The items were presented as added starters for consideration at the council's next meeting; no final vote was recorded in the pre-meeting discussion. Director Guzman said the administration intends to advance the ordinance in January so staff can submit materials to the local finance board in time for its February meeting.