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Rahway council tables 2026 budget after public questions about transparency and PILOT payments
Summary
After a statutory public hearing on the introduced 2026 municipal budget, Rahway council voted to table formal adoption pending review by the Local Finance Board and continued questions from residents about PILOT collections, utility surpluses and whether the introduced budget was available in writing at the July meeting.
Rahway’s City Council opened a statutory public hearing on the 2026 municipal budget on Aug. 3 and, after more than an hour of public questions, voted to table formal adoption while the city’s application awaits the Local Finance Board’s Aug. 12 review. Dita Lerch, the city’s auditor, told the council: "Tonight's purpose is to hold a hearing on the on the budget as it was introduced in July," and emphasized no final action would be taken at the meeting.
Business Administrator Matt Pankovich outlined the spending plan and major line items, saying, "The total citywide spending plan totals over a $100,000,000," with a municipal portion of $79,643,000 and key cost drivers including an approximate $3,000,000 increase in health benefits. Residents pressed the council on process and specifics: Andrew Garcia Phillips called attention to dramatic year-to-year fluctuations in PILOT (payment in lieu of taxes) receipts for several developments and said, "The pilot program needs a forensic audit." Lisa Vandiver and Alan Levy also urged clearer access to and documentation of the introduced budget, citing multiple versions posted online and the timing of the written filing required by statute.
Councilman Brown moved to table adoption of the municipal budget (resolution AR-189-26); Councilwoman Joanna Miles seconded. A roll call vote produced a majority in favor of tabling the adoption so the city's application before the Local Finance Board can be resolved. The administration said the city followed statutory advertising and filing deadlines and that some one-time revenues and utility fund balances were used to limit the net tax increase for residents.
What happens next: the Local Finance Board hearing is scheduled for Aug. 12; the council will resume action only after the state review and any necessary amendments are resolved.
