JERSEY CITY, NJ — Jersey City's City Council voted to approve an $8xx million budget on Wednesday that will include a 15 percent tax increase for property owners.
After struggling with a $255 million gap in the proposed $874 million spending plan, the State of New Jersey provided $120 million in aid to help fill the hole.
Mayor James Solomon said the previous administration had left the deficit, and the city was also able to cut the size of the budget slight to the final $886.4 million plan.
The budget covers spending from Jan. 1 through Dec. 31 of this year.
Residents and officials expressed frustrations with the size of the tax increase, but Solomon said workers had done their best to narrow the gap.
"This budget is a significant step towards solving our historic fiscal crisis and protecting basic city services," a Solomon spokesman said Thursday. "There are no easy solutions to a budget crisis of this magnitude."
He added, "The mayor fought for and won a historic $120 million aid package from Trenton to lessen the burden on Jersey City taxpayers and protect vital city services this year - like right to counsel, safer streets and public safety. In the end, we cut city spending by over $58 million and limited this year's tax increase to the lowest possible level.
" While both the cuts and tax increase are painful, we believe they are the first steps towards getting Jersey City's finances back to healthy and stable."
The had held a series of public hearings around the city to discuss the increase.
The aid package included $105 million in long-term, low interest debt and $15 million in transitional aid grants, according to the city.
The city said the money will primarily be applied to payment of outstanding debt that must be paid this year.
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