Newark staff outline 2026–28 budget and five‑year forecast, warn of gap when 3.25% utility tax sunsets

At a March work session, Mayor Michael Hand and city staff presented the City of Newark’s 2026–28 operating budget framework and a five‑year financial forecast that remains balanced through the next biennium but shows a structural gap beginning in fiscal 2029–30 after the city’s 3.25% utility users tax (UUT) is scheduled to sunset.

“Personnel costs are our largest cost — about 53% of the operating budget — and pension obligations are legally required and can be volatile,” Finance Director Kristen Lee told the council during the presentation. Lee said the city’s combined pension liability stands at roughly $387 million, with a funded status near 69% and an unfunded accrued liability of about $121 million.

Lee described the city’s tools for smoothing pension costs, including a Section 115 trust. “We contributed $12 million…