The Redevelopment Agency adopted a $1.41-million budget for 2021, which remained much the same from the 2020 spending plan.
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The seven-member Board of Commissioners adopted the 2021 budget (Resolution 19-21) during its monthly regular meeting on March 17.
Chief Financial Officer Frank Ruggiero described the budget as fairly flat from last year during his report to commissioners. The $1.471-million budget uses about $104,000 of surplus. The 2020 budget consisted of revenues of $1.375 million and total appropriations of $1.444 million.
The vast majority of the budget typically constitutes a capital grant agreement, essentially pass-through funds from the city to pay debt service for the Rahway Public Library facility and Arts District projects, like the Hamilton Stage. Debt service consisted of almost $700,000 for the Rahway Public Library facility and $445,000 for Arts District projects in the 2020 spending plan, with total remaining principal of $5.425 million, including $3.175 million the Arts District projects. Debt service this year makes up $1.141 million.
Other appropriations in this year’s budget include $271,652 for operating expenses; $47,508 for salaries and wages, and $9,986 for fringe benefits. On the revenue side, in addition to the surplus, the city’s contribution will be $100,000, in addition to the city debt of $1.141 million. The budget also anticipates $100,000 in redeveloper fees, another $24,000 in rent and $1,146 in interest.
Redeveloper fees often are paid after certain milestones are reached redevelopment projects. As part of redevelopment agreements the agency negotiates with developers, it receives fees for each unit constructed, usually some portion upon the execution of the agreement, another portion upon issuance of permits, and remaining balance upon issuance of the first certificate of occupancy (CO).
City Council in March 2010 approved borrowing $8.5 million to construct the Hamilton Stage facility
. Originally, the plan was to build an adjacent amphitheater on the site of the former Hamilton Laundry but plans shifted in early 2011, focusing on the black box theater and instead a parking lot rather than amphitheater. Renovations to the former Bell Building began a decade ago this week.
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