A state official has put in writing that the introduced 15.5 percent tax hike that accompanies Jersey City’s preliminary $886,546,594.16 municipal budget is non-negotiable.
By John Heinis/Hudson County View
“I would like to reiterate that DLGS [Department of Local Government Services] will not approve a local purpose tax levy lower than $457,972,500, which is a 15% increase over the local purpose tax levy of CY2025, per the attached loan agreement, which was approved 9-0 by the City Council,” wrote DLGS Deputy Director Kathleen Long in an email to Jersey City Council President Denise Ridley and Councilman at-Large Rolando Lavarro yesterday.
“For your information, modifying this levy increase was not/is not on the table for any updated agreements … I would ask that you refrain from submitting any draft amendments in contravention of the loan agreement as it would be a waste of time and resources to review.”
Long noted that she sent the email after watching the Finance Department’s budget hearing the day prior and heard that there were ongoing efforts to reduce the city’s tax rate for 2026.
At their July 15th meeting, the council unanimously approved a memorandum of understanding with the state for the terms to repay a $105 million loan, the bulk of a $120 million aid package approved by the state legislature at the end of June (the other $15 million was a grant).
The governing body voted for a 10-year repayment schedule at 2.75 percent interest rate, one of two options HCV exclusively reported last month. They are poised to vote on the second and final reading of the budget at their August 19th public session.
Lavarro said Saturday that he considers the DLGS “a partner in addressing Jersey City’s fiscal challenges” before sharing his reply to the council.
“As the email from Kathleen Long clearly asserts, reducing the levy below the MOU threshold and 15% tax increase is not possible contrary to what I said at yesterday’s Finance budget hearing and in every prior budget hearing and the July 15 council meeting,” he wrote.
“I misunderstood what DLGS communicated to me, Council President Ridley and [Ward F] Councilman [Frank] Gilmore in our meeting on July 13. That being said, I want you to know that my intention was not to mislead the city council or the public.”
The Jersey City councilman added that he was going to continue working on budget amendments over the next two days and publicly acknowledge that the introduced tax rate cannot be reduced.
