Mayor Christina Deal announces independent probe after auditors find tax-assessment error, outlines revenue gains and infrastructure work

Mayor Christina Deal opened the meeting with the city’s required State of the City and disclosed that auditors identified a significant 2024 tax-assessment error that created a gap in tax collections for 2025. She said the city’s reserves will cover immediate impacts while the administration — with the city attorney — commissions an independent investigation to determine how the error occurred and whether any individuals should be held accountable. The mayor said the auditors will release the final annual financial statement after the council approves a 2025 transfer resolution this evening.

Deal highlighted several revenue bright spots as she sought to reassure residents: the 2% cannabis transfer tax yielded $270,460 in 2025, roughly $85,000 above budget and about $50,000 more than the prior year; hotel and short-term-rental occupancy fees (including 46 registered STRs) generated about $196,000; and parking revenue hit a record $597,581, up about $33,362 from the previous year. She said those gains, together with reserves, will let the city manage short-term budget pressure while staff model longer-term impacts for the 2026 budget.

The mayor reviewed personnel changes and volunteer capacity: the city employs 26 full-time and 12 part-time staff, recorded several retirements, and welcomed a list of recent hires. She thanked more than 100 volunteers who serve on boards and commissions and noted Lambertville will soon be one of fewer than 50 certified local governments in New Jersey under a National Park Service historic-preservation program; the certified status should help the historic preservation commission pursue dedicated grant funding.

On housing, Deal said the governing body is expected to endorse the housing element and fair-share plan tonight as a formal promise to current and future residents. She noted that Region 9, a nonprofit housing corporation, recently purchased and began renovating two apartment properties to preserve affordable units. Deal also updated the council on a court matter related to the high-school redevelopment plan: K. Hovnanian filed to intervene and asked to rescind a conditional judgment; the Superior Court ordered the city to amend its redevelopment plan consistent with prior amendments the council used to allow a proposed inclusionary project, and the city is negotiating a redevelopment agreement. The mayor said the city’s primary concerns for that redevelopment remain environmental conditions at the site, stormwater management, and traffic and pedestrian circulation.

Deal reviewed municipal work completed in the past year — Church Street repaving and one-way restoration, an Upper York Street retaining wall, library repointing and elevator replacement, a firehouse stormwater infrastructure project, and public works garage expansion and OSHA upgrades — and noted projects still in progress, including a planned replacement of a roughly 500-foot water main on South Franklin Street (about a month of work planned in April) followed by repaving. She said Kavama Park will reopen March 1 after a yearlong closure and described work with state and federal partners on resilience planning.

The mayor also summarized several environmental and public-health items: the city received a 155-page resilience action plan and secured multiple small grants for conservation and restoration work, including $95,300 from the Sourland Conservancy/Delaware Watershed program to restore roughly 16.5 acres along Rustland Lake Nature Trail and a $4,000 pollinator-garden grant for Ely Playground. She said the city is pursuing a New Jersey Department of Environmental grant opportunity that could provide more than $1,000,000 in potential green stormwater infrastructure funding along the eastern edge of Music Mountain (award pending and subject to application review). Deal updated residents on PFAS concerns in private wells and described a recent meeting with the Department of Environmental Protection; she said DEP agreed to expand testing and will conduct pre- and post-treatment sampling to help identify causes of elevated results and that a small state grant will fund about 15 free PFAS tests for residents in partnership with Garden State Labs.

On emergency preparedness, the mayor defended the city’s snow-removal decisions during a recent severe storm and said clearing the Central Business District required roughly $88,800 in overtime. She told residents the city prioritized emergency-access routes and that officials will consider options such as a contingency fund or pre-arranged contractual arrangements for future extreme events.

The council voted on several routine items after the address, including approving minutes and accepting administrative reports. Deal said the auditors will post the annual financial statement early next week and promised to keep residents informed as the independent review proceeds.