Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Budget topic
No spam. Unsubscribe anytime.
Trenton administration lays out $298M draft budget; tax rate proposed to rise about 2%
Summary
City administration presented a draft FY2026 budget of about $298.4 million including grants, proposing a 2% municipal tax-rate increase and an estimated $59 million in transition aid; staff said appropriations exceed the 3.5% cap and a Local Finance Board waiver will be sought.
City finance staff presented a draft FY2026 budget to the Council on April 7 that totals roughly $298.4 million including grants and assumes $59 million in transition aid and $10 million in capital city aid.
"Our proposed budget for this year is $298.4 million including grants," said the finance presenter during a statement to council. The administration described a projected municipal tax‑rate increase of about 2% (from roughly $3.70 to $3.78) and explained why the total levy can fall slightly even as the rate rises: the city expects to lose between $45 million and $48 million in ratable value due to revaluations, appeals or changes in taxable status for some properties.
The administration said appropriations exceed the statutory 3.5% cap by roughly $18 million and that the city will request a waiver from the Local Finance Board prior to adoption. Officials projected the state would finalize aid numbers in July, with an adoption target in September or October once the Local Finance Board review is complete. The administration gave an example homeowner impact: an estimated $74 a year on a $100,000 assessed property under the draft rate.
Council members asked for clarification on the composition of aid and revenue (transition aid vs. capital city aid vs. energy-receipts tax), debt-service strategies including potential refinancing and shared services, and whether library funds were restricted to existing library operations. Staff said transition aid is competitive through the Department of Community Affairs, capital city aid is a state line item, and energy receipts are formula-based allocations distributed to municipalities.
Council directed staff to provide additional detail on revenue composition and on options to reduce long-term debt service; staff said they are actively searching for a permanent finance director while the treasurer continues to manage cash and investments.
