Emergency Loan Proposal Slashed More Than 50% In Parsippany

PARSIPPANY, NJ — After tabling a controversial $5 million emergency loan twice, Parsippany Township Council agreed at Tuesday's meeting to reduce the proposed loan to $2.3 million.

The township faces an estimated $9 million revenue deficit because of the pandemic, and the administration will need to address a deficit of $2-2.8 million before presenting the budget to the council.

Parsippany faces immediate budget difficulties, because much of the federal stimulus money for offsetting pandemic losses isn't immediately available. But Parsippany expects to receive half of its $5.38 million allocation this year and the other half in 2022.

Reducing the loan to $2.3 million gives the township an opportunity to repay the loan in full next year with COVID relief money.

"If we borrow the $2.3 million, it’s going to be on the condition that the township pays back $2.3 million with the pandemic-recovery money that we will receive in 2022," said Council President Michael dePierro. "We will not burn the taxpayers at all."

What Happens Now

Council members previously critiqued the size of the proposed $5 million loan and said they didn't have enough information to settle on it. After discussions with Soriano's administration, the council voted unanimously to vacate the $5 million proposal and introduce a new ordinance to authorize the smaller amount.

"When we receive the $2.7 (million), let’s pay our $2.3 (million) back completely," said Council Vice President Loretta Gragnani.

The council passed two other resolutions related to the budget to meet requirements from the New Jersey Division of Community Affairs. One authorizes CFO Juan Uribe to apply for the loan, while the other authorizes the issuance of special emergency notes that cover the loan.

A second reading, public discussion and final vote could occur at June 15's council meeting. Parsippany returned Tuesday to in-person meetings at Town Hall.

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