The meeting commenced with Business Administrator Eric Pennington presenting the Department of Administration’s budget. He highlighted the department’s oversight of a $914 million operational budget and 3,800 employees. The budget aims to maintain fiscal prudence while supporting Mayor Ras J. Baraka’s initiatives, including public safety improvements, affordable housing, and economic development. Pennington emphasized the challenges of rising pension costs, health benefits, and an $89.60 average property tax increase. The city has requested a $22 million loan from the state to mitigate the tax rate increase due to diminishing ratables and increased county levies.

Councilman Carlos M. Gonzalez raised concerns about budgeted vacancies, questioning the rationale behind funding positions unlikely to be filled due to a hiring and promotion freeze. Pennington clarified that some positions remain budgeted to ensure continuity, and adjustments are being made to stay within expenditure limits. Councilman Patrick O. Council inquired about the financial implications of the $22 million increase in county levies, attributed to lower property assessments. Pennington noted that a revaluation contract had been signed, but complete revaluation would take until approximately 2027.

Councilman Anibal Ramos Jr. voiced concerns about the 15% increase in expenditures from the previous year, questioning the Department of Administration’s strategy to navigate future financial challenges. Pennington acknowledged the need for a long-term strategy, particularly given the reliance on loans and the delayed revaluation process. Ramos emphasized the importance of preparing for tougher times and avoiding temporary solutions.

The council also delved into the specifics of the $22 million state loan, noting it is a zero-interest loan with no immediate repayment required. The budget’s increase was attributed to information technology expenses, with the city falling behind industry standards. Concerns about cyber threats necessitated increased funding for IT upgrades, including more efficient procurement of cell phones and devices for city employees. Despite some savings from these measures, the overall rising costs for a modernized IT infrastructure were acknowledged.

Further discussions revealed ongoing development in the city, with increased development expected to boost funds. However, a hiring freeze remains as a fiscal prudence measure, with exceptions for essential hires and promotions. Questions were raised about the city’s equalization rate and financial obligations to the county, including a $24 million payment due this year. There was also a decrease in expected payments in lieu of taxes (PILOT) from $25 million to $23 million, possibly due to properties transitioning from tax-abated status to ratables.

The council sought transparency regarding salary increases for directors, noting discrepancies in raises. A directive is in place to ensure no full-time employee earns less than $40,000, with planned adjustments. The discussion included a call for a comprehensive list of directors receiving raises and the justification for those increases. Pennington explained that many raises are due to reinstated longevity benefits, not individual raises.

The Department of Economic and Housing Development (EHD) presented a $3.97 million budget for 77 full-time employees, aiming to add 3,000 new housing units over five years and support low to moderate-income homebuyers. Concerns were raised about salary variations within the EHD, with management changes contributing to fluctuations. Revenue from fees associated with vacant properties currently goes to the general fund, though there was interest in reallocating some revenue back to the department.

The council discussed the status of properties transferred to Invest Newark, seeking updates on rehabilitation or development. The Deputy Mayor promised to provide this information in subsequent meetings. Council members emphasized the need for transparency in managing the city’s property inventory, with plans to release a list of properties quarterly.

The discussion also touched on the Department of Public Safety’s budget, reporting a 1.5% increase in the police department’s budget due to salary and contractual obligations. The fire department’s budget saw a decrease in positions, reflecting retirements and lower pay rates for new hires. Concerns were raised about the temporary closure of two firehouses pending remediation and the impact on public safety. The budget for equipment had decreased, attributed to these closures and staffing changes.

The council addressed crossing guard vacancies, with 17 positions unfilled despite hiring 11 new guards. Questions arose about the impact of unchanged pay rates on recruitment. The Director explained that overtime expenses were driven by personnel adjustments and the opening of a new precinct. The use of drones for operational safety during public events was noted, with only two operational drones currently available.