Parsippany Mayor Defends Proposed $5 Million Budget Loan

PARSIPPANY, NJ — As Parsippany faces significant budgetary issues, Mayor Michael Soriano defended his administration's proposal for the township to take out a $5 million emergency loan. Councilmembers expressed concerns over the idea, as officials figure out ways to bounce back from financial issues associated with the pandemic.

At May 4's meeting, the Township Council unanimously voiced that the administration didn't provide them with enough information to make an informed decision. Members have also voiced concerns over potential tax increases it could cause.

Soriano rebutted in a statement that the proposed emergency note would be necessary to recover from budgetary issues that came during and before the pandemic.

"A combination of poor fiscal practices from the previous administration led to an absence of revenue surpluses across all departments," Soriano said. "Now, coupled with a global pandemic that shook the country’s financial institutions to their core, Parsippany is facing a budgetary storm that we must address and correct today."

Parsippany will receive nearly $5.4 million in municipal aid from the American Rescue Plan Act — a federal COVID relief package that became law March 11. But the funding won't help the township immediately, Soriano says.

"The most we can expect is half of that before the end of the year," he said. "We have bills to pay now. This is not just some abstract allocation of finances. Township operations may be at stake. The water we drink, the garbage that’s collected, the emergency services we rely on, all of them are vulnerable to cease operation if we cannot pay for them to operate."

Some candidates running for Parsippany mayor and council have publicly opposed the proposed budget. Parsippany First — a ticket including mayoral candidate Louis Valori and council hopefuls Gary Martin and Justin Musella — wrote the following on its Facebook page: "Soriano and his administration have mismanaged the Township for the past three years with historical tax increases, 40 percent water bill increase. Mismanaged Utilities, Over Development and Soaring increase in crime; resulting in the outrageous outcome above."

The Township Council will next meet at 7 p.m. Tuesday at the Parsippany Police Athletic League Building (33 Baldwin Rd.). The meeting will include a second reading and public hearing on the proposed $5 million loan. The in-person meeting will follow COVID-19 protocols.

Soriano is running unopposed for re-election in the Democratic primary. He will face either former Mayor James Barberio or former Councilmember Lou Valori — both Republicans.

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