NEWS

Balanced budget heads to council with some opposition

Joe Williams
Reporter

NEWARK – The Newark City Council next week will consider passing a balanced 2015 General Fund Budget totaling $29.7 million that does not increase safety forces but does avoid laying off employees.

On Monday night, the Finance Committee forwarded that proposal to the full council via a 4-1 vote, with Councilman Doug Marmie, R-6th Ward, dissenting.

Marmie said he opposes the budget as proposed by Mayor Jeff Hall because it does not adequately address priorities set by residents, the council and the mayor — "in particular streets, safety forces and making sure of our fiscal responsibility for the future. We're still deficit-spending with the budget stabilization fund and decreasing the percentage going into capital improvements."

Hall's proposed budget package for 2015 totals $97.37 million, down roughly $7.3 million from this year's total of $104.6 million. The General Fund is the only part of that package that reflects an increase — $334,901 above the 2014 total of $29.38 million.

Two separate budgets for grant funds ($2.5 million) and all other funds ($65.1 million) show significant decreases from 2014 totals of $3.4 million and $71.7 million, respectively.

Hall proposes balancing the General Fund in part by using $300,000 from the budget stabilization — or "rainy day" — fund, carrying over $1.25 million into next year, and increasing the percentage of income tax collections to the general fund while decreasing the allocation to capital improvements.

Currently set at 85 and 15 percent, respectively, Hall has proposed a 90/10 split, which he said will be mostly offset by granting medical insurance premium holidays.

The city is partially self-insured and has overfunded its program, he said. It cannot return money but instead can grant premium holidays — pay periods without deductions. On those paydays, the city's share would go into capital improvements.

"With the premium holidays, the level of capital improvements would stay the same and the level of road funding would stay the same," Hall said.

Hall said the city is still struggling to offset the $2 million it lost annually when the state reduced local government funds and eliminated the estate tax.

Hall said he has met with department heads to discuss budget requests line by line, and all are aware of the city's financial constraints.

"It's a very tight budget, and we know we will have to run very, very lean in 2015, still," he said.

Finance Committee Chairman Jeremy Blake, D-2nd Ward, said he will ask the council to expedite the budget package — or waive second readings — when members meet in Council Chambers at 7 p.m. Dec. 15, the last full council meeting scheduled for this year.

"It's a balanced budget," he said. "We're allocating money for our local heroes, police and fire ... city services, quality water service. There is not as much money as we'd like, but there is money in there for streets and paving for next year."

Although the council can opt to approve an interim budget before Jan. 1, it must adopt a final budget by April 1.

At this coming Monday's council meeting, the panel also is expected to vote on changing the capital improvements formula to help balance the budget. The Capital Improvements Committee unanimously forwarded that to the council.

Councilwoman Carol Floyd, D-7th Ward, said she plans to offer an amendment to limit that change to one year so the council can evaluate the formula's efficiency annually.

jwilliams6@newarkadvocate.com

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Twitter: @JoeAdvocate