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A REFUNDING BOND ORDINANCE AUTHORIZING THE ISSUANCE OF $30,100,000.00 AGGREGATE PRINCIPAL AMOUNT OF REFUNDING BONDS AND/OR REFUNDING NOTES BY THE CITY OF NEWARK, IN THE COUNTY OF ESSEX, STATE OF NEW JERSEY, FOR THE PURPOSE OF FUNDING AN EMERGENCY TEMPORARY APPROPRIATION TO REPAY A TRANSITIONAL AID LOAN FROM THE DIVISION OF LOCAL GOVERNMENT SERVICES WITHIN THE DEPARTMENT OF COMMUNITY AFFAIRS OF THE STATE OF NEW JERSEY.
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WHEREAS, due to an increase in taxes payable to the County of Essex, New Jersey (the "County"), the City of Newark, in the County of Essex, State of New Jersey (the "City") faced a serious fiscal emergency for its Fiscal Year 2025 budget and requested Fiscal Year 2025 Transitional Aid to Localities ("Transitional Aid") administered by the Division of Local Government Services within the Department of Community Affairs of the State of New Jersey (the "Division"); and
WHEREAS, the Division determined to lend the City $30,000,000.00 in Transitional Aid (the "State Loan") to balance the City's Fiscal Year 2025 budget pursuant to an Amended Loan Agreement between the Division and the City, dated August 11, 2025 (the "Agreement"); and
WHEREAS, pursuant to the terms of the Agreement, the State Loan is due and payable in full to the Division no later than March 3, 2026; and
WHEREAS, the Municipal Council of the City adopted a resolution providing for a $30,000,000 emergency temporary appropriation (the "Emergency Temporary Appropriation") pursuant to N.J.S.A. 40A:4-20 to repay the State Loan; and
WHEREAS, the payment of such Emergency Temporary Appropriation is a purpose for which an appropriation may lawfully be made for the period between the beginning of the 2026 fiscal year and the date of the adoption of the 2026 annual budget of the City; and
WHEREAS, the amount of the Emergency Temporary Appropriation will be included under the appropriate heading in the City's 2026...
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