Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
Business administrator warns Newark may face roughly $40 million county payment tied to budget ratio deficiency
Summary
Eric Pennington told the council the city faces a ratio deficiency that could require about $40 million in payments to the county; administration is considering options including bonding and asset dispositions and will meet with the budget committee.
City business administrator Eric Pennington told the Newark Municipal Council that the city’s outstanding ratio deficiency to the county could be substantially larger this year and would require a significant budget response.
Pennington said the city had previously paid varying amounts to the county in prior years and that the outstanding ratio deficiency this year could be “closer to $40,000,000.” He described ongoing budget challenges and said the city is exploring ways to offset the deficiency, including selling or reducing unneeded properties and potentially issuing bonds.
“You know, the 30,000,000 last year… and this year, it’ll be closer to $40,000,000,” Pennington told the council. When asked by Councilman Gonzales whether the city would seek a state loan, Pennington replied, “No. We have to take a different approach. We may have to bond for it.” He said the administration would meet with the budget committee the following Monday to address unresolved issues.
Why it matters: A multi‑million-dollar deficit or required payment to county authorities materially affects municipal finance choices, may require short-term borrowing or asset strategies, and can influence service and staffing decisions.
What’s next: Administration planned a meeting with the budget committee to define options and will provide additional information to the council; the transcript shows no final fiscal decision recorded during the excerpt.
