Newark's 2022 general fund budget includes six newly-funded positions
NEWARK — The city of Newark's proposed 2022 budget includes six newly-funded positions, two created by city council and four positions that have been unfunded.
City Council's Finance Committee approved the proposed $39.1 million general fund budget Monday night, passing it on to the full council for a Dec. 20 vote. The other budgets approved were the all other funds budget of $64.6 million and the grants budget of $2.6 million.
The six newly-funded positions include two in income tax, two in streets/traffic and one each in the prosecutor’s office and adult probation. Council created the two positions in streets/traffic. The other four positions already existed, but were not funded.
Mayor Jeff Hall told council the city has reduced its workforce by about 150 from its peak employment many years ago.
“The city has been pretty efficient and lean for years," Hall said. "Some of those positions were not funded because there weren’t funds. Some positions were there because that’s what they need to run those departments properly. Income tax cut back over several years to help with the budget.”
Councilman Doug Marmie, the finance committee chairman, asked why the fire department salaries increased about 8% when the raises were 4%,.
Fire Chief Pat Connor replied that the SAFER grant scales down the federal government's contributions for those positions, meaning the city will need to pay a larger share.
Marmie said the city needs to monitor funding from gas tax revenue for the streets/traffic department in 2022.
“Gas taxes are down and that hurt the street and traffic department funding," Marmie said. "We really have to keep a close eye on that this year. We’ve made up for it a little bit this year, but we need to have a game plan if gas taxes stay down. We’re going to have to really figure out some ways to create efficiencies or look at other opportunities to reduce expenses in that department.”
The mayor said the city will add to its budget stabilization fund to guard against such revenue shortfalls, and added that the state legislature may look at alternatives in response to lower gas consumption reducing gas tax revenue.
"We are doubling up budget stabilization to almost $1.4 million by the end of next year, and that's up from $650,000 at the beginning of this year."
The city's Rainy Day Fund balance is more than $1 million, which Marmie said helps the city's bond rating, which earns a lower interest rate on borrowing.
"All the departments across the city, I want to thank because it really starts with them and they watch their budgets," Hall said. "I think they've become much more fiscally responsible over the last 10 years because we tried to teach them that."
kmallett@newarkadvocate.com
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This article originally appeared on Newark Advocate: Newark's 2022 general fund budget includes six newly-funded positions
