City finance staff seeks reserve transfers to cover 2025 obligations including health benefits and utilities

Finance staff presented resolution 26‑043 to authorize appropriation reserve transfers for calendar year 2025 obligations, a routine mechanism permitted under New Jersey law (NJSA 40:4‑59) for moving unexpended funds to satisfy prior year contractual commitments.

Danny Beige Knott of the finance department explained most transfers are for salary, wages and operating expenses tied to retirements and unfilled positions and that the transfer process allows the city to pay 2025 obligations while the temporary budget remains in effect. Council members asked whether the largest line items — including $2,172,600 listed for health benefits and a combined $884,000 for electricity/street lighting tied to mid‑2025 PSE&G rate increases and the opening of a new public safety building — were part of the larger budget challenge the mayor described. Finance confirmed the health‑benefits transfers are among the under‑budgeted items contributing to this year’s pressures.

Council requested supporting documentation: the original 2025 analyses that gave rise to the transfers, a building‑by‑building breakdown of electricity costs, and further detail on program line items referenced in attachments. Finance said it will provide those materials and clarified that these transfers are for obligations already incurred in 2025, not for the 2026 budget. Council members also discussed normal carryover practices for unspent funds and the impact of tapping reserves on future years’ fiscal flexibility.

Next steps: Finance staff will circulate the supporting analyses and a breakdown of utility and program line items to council members ahead of the formal council meeting.