Jersey City Municipal Council Caucus Meeting - July 14, 2026

The Jersey City Municipal Council held a caucus meeting on July 14, 2026, starting at 12:15 PM with eight of nine council members present. The meeting focused on the city's fiscal crisis, a budget introduction, and various resolutions. Council President Ridley began by recapping a morning meeting with the New Jersey Department of Community Affairs (DCA) regarding the Q3 tax rate, budget authority, and a proposed Memorandum of Understanding (MOU) for transitional aid.

DCA Meeting Recap & Budget Discussion

Council President Ridley reported that DCA confirmed the council has the authority to introduce a resolution at the Wednesday council meeting to set the Q3 tax rate, which must be done to allow tax bills to go out and maintain city liquidity. The council had previously voted down a proposed rate at the July 1 meeting. Ridley stated the council retains its legislative power over the budget and can propose cuts; accepting an MOU does not alter that. However, the DCA strongly discouraged tapping into the city's “rainy day” fund (fund balance) for 2026 beyond the $2.3 million already budgeted for snow removal. The DCA also advised against land sales to raise revenue. Regarding the transitional aid loan, the state administration is insisting on an interest-bearing loan, not a no-interest loan as in the past. Two loan agreement options were provided to the council: one assuming a 15% tax rate increase and one with a 20% increase. DCA made clear that any savings found through budget cuts would not allow a deviation from those two rates but would instead go toward repaying the loan or benefit the 2027 budget. Several council members expressed frustration that the administration had not communicated these details earlier, leaving the council little time to deliberate.

Budget Introduction Presentation

Business Administrator Bill presented the introduced Fiscal Year 2026 budget: total $886.5 million. He emphasized that the headline figure includes over $100 million in inherited unpaid obligations from prior administrations. The “true cost” of running the city is estimated at $798.4 million, a reduction of about $58 million or nearly 7% from 2025 when adjusted for one-time items. Key reductions came from health benefits savings (switching from Horizon to Meritain) and paying down deferred spending. Department spending (excluding public safety) saw real cost reductions of ~$9.7 million. Public safety accounts for 70% of salaries and wages. The budget assumes a 15.5% tax rate increase, which on a home assessed at $500,000 is an additional $634/year ($53/month). Combined with expected school and county increases, the total increase is ~$1,700/year ($143/month). Revenue sources include $82.8 million in PILOTs (down 9%), $33 million from MUA franchise payments (a higher amount due to debt maneuvers expected to decline in 2027), and $185 million in state aid (including $105 million from the loan). The loan is expected to be repaid over 10 years at 2.75% interest. The city's cash balance as of July 1 was $115 million, emphasizing the need for a Q3 tax rate to avoid cash shortages.

Council Requests and Administration Response

Council members made several data requests, including a list of new hires since January 15, salaries of laid-off employees, the pilot audit update, a five-year financial plan (in Excel format), and an organizational chart. Corporation Counsel noted that lawsuits would be a legal mechanism to compel compliance but encouraged dialogue. The administration cited staffing constraints and said some documents would be provided during budget hearings. Councilman Gilmore corrected the record that the council's budget has actually decreased by $1.1 million, contrary to reports of a 20% increase.

Departmental Resolutions and Ordinances

The council discussed numerous items:

• Data Centers (3.1): First reading of an ordinance to remove “cyber hotels” (data centers) as a principal use in industrial districts, consistent with the master plan. Councilwoman Little indicated she will introduce a resolution opposing data centers.
• Central Avenue Redevelopment Plan (10.28): Authorized opening the plan to discuss subdividing a lot to allow 100% affordable senior housing. Council expressed support but cautioned against other changes.
• Morris Canal Redevelopment (10.29): Authorized opening the plan for 417 Communipaw; developer proposes a six-story building with affordable housing and grocery space instead of the previously approved 17-story with community center. Councilman Gilmore was not fully briefed; further discussion expected.
• Cannabis License Renewals (10.31-10.35): Resolutions renewing local support for several retail cannabis businesses. Corporation Counsel advised that the council must provide reasons on the record for any denial; approval requires only brief reasons.
• Police Off-Duty Scheduling Software (10.40): Awarded a contract to Extra Duty Solutions at no direct cost to the city, funded by an 8% transaction fee on off-duty assignments. Software will digitize scheduling and improve accountability.
• Towing Claims (10.37-10.38): Settlements totaling $93,000 for emergency towing services during winter storms, with one additional claim pending.
• Emergency Demolition (10.49): Ratified $11,700 emergency demolition of a collapsed building at 84 Stagment Street after developer failed to act. Council urged placing a lien on the property.
• Air Conditioning Units (10.36): Ratified $77,532 emergency contract for temporary cooling at municipal court and East District police station while permanent HVAC replacements are bid.
• HVAC Services Bid Rejection (10.46): Rejected all bids for citywide HVAC maintenance as the low bid ($9.89 million) exceeded the budget; city will negotiate directly.
• Recreation Field Fees (3.8): First reading of ordinance to establish fees for athletic field rentals, with a focus on non-resident vs. resident rates. Council requested adjustments for Jersey City-based nonprofits.
• Environmental Justice Task Force (4.6): Second reading ordinance establishing an Environmental Commission and Environmental Justice Task Force. The administration recommended passing it and later amending based on stakeholder input. Councilwoman Singh expressed concerns about mayoral appointments and lack of council approval.
• Cannabis Transfer Tax (4.10): Ordinance repealing the medical cannabis transfer tax and harmonizing it with recreational cannabis tax. All revenues will now go to the general operating fund rather than the affordable housing trust fund, as required by state law.
• Holiday Project Discharge (10.22-10.23): Resolutions issuing a certificate of completion and discharging affordability restrictions for nine two-family homes built in 1990. Council asked for details on tenants and potential protections; law department will review legal rights.
• Christopher Columbus Drive Improvements (10.26): Amended professional services contract (no cost increase) to extend design work due to MUA discovering deteriorated sewer infrastructure.
• VIA Settlement (10.43): Settlement agreement with River North Transit LLC (VIA) resolving a contract dispute; clarifies monthly payments and continues ridership data reporting. Contract runs through mid-2028.
• Debt Collection RFP (10.41): Authorized RFP for collection of outstanding municipal court judgments (civil infractions) on a contingency basis.
• Other Items: Several items were withdrawn or carried over, including the appointment of James Carroll (withdrawn), the Cateen memorial plaque gift (withdrawn pending final mock-ups), and three pilot-related ordinances (carried to September).

Key Outcomes

• Q3 Tax Rate Resolution: To be introduced at the Wednesday meeting; council will decide between 15% or 20% increase or another amount, but DCA warned that a lower rate could reduce the state loan amount.
• Budget Hearings: Scheduled to begin after departmental line-item budgets are provided; council president may adjust timeline if documents are delayed. The budget must be adopted by August.
• MOU Vote: The council is expected to vote on one of two loan agreements on Wednesday.
• Closed Session: Authorized for August 19, 2026, at 5 PM to discuss pending litigation.
• Claims and Requests: Administrative claims and data requests to be addressed; GPS tracking and use of city vehicles to be audited.