June 18, 2010 (Newark) – A unanimous vote by the Newark Municipal Council last night paved the way for the City to apply to the State to create a Municipal Utilities Authority and to allow the administration to submit a balanced budget to the State. The resolution was approved at last night’s regular meeting of the Newark Municipal Council, attended by eight of the nine Council members.
 
The Council voted on the resolution after several days of meetings and discussions with the administration on budget issues, and solutions to the City’s budget crisis. The resolution specifically allows the City to submit an application to the Local Finance Board for its “findings, recommendations and/or approvals as provided by the applicable New Jersey Statute,” according to language included in the resolution. The administration has been vocal recently in its belief that the creation of an MUA is the only way to balance the City’s budget and recover from the economic crisis facing Newark. Without a balanced budget submitted to the State in a timely manner, Newark faces potential State takeover of its financial operations.
 
“Contrary to the community opposition to the MUA, this was a necessary step to allow us as a body to receive the administration’s budget plan, review it, and then find other creative ways to balance the budget,” says West Ward Councilman Ronald Rice. “I am not sure if the MUA is the right thing to do. However, the Mayor believes that it’s what he needs to balance the budget, so we have a responsibility to allow him to create and submit a budget, and then have the proper discussions about other alternatives to the MUA. The bottom line is that we have a duty to look at all options before deciding on one, and this vote will allow us to do that,” he said.
 
The proposal that will be debated throughout the summer gives the City Council the power to create the governance structure of the authority, appoint commissioners, and approve all authority contracts. Personnel decisions, facilities maintenance and revenue collection will be up to the authority, city officials said recently, freeing it from civil service regulations. In voting in the affirmative for the resolution, Council members were adamant in their position that this vote was not a final vote to create an MUA, but merely a necessary step in the total budget process for a review and a consideration of the application.
 
Council Vice President Luis Quintana added during the meeting that “tonight’s vote is by no means a final step in the process. It’s a first step, and the public can be sure that their input will be heard and considered before we make a final, well-informed decision.”