Prior to the 2012 partnership, each year Bayonne faced a serious financial crisis caused by a recurring $30 million annual shortfall in the city budget.
In 2009 layoff notices were sent to hundreds of employees, including police and firefighters. On March 4, 2009 the Bayonne Community News reported that closing the budget gap would require as 50% increase in the municipal tax rate. The City sold assets and found other ways to avoid the crisis temporarily, but each year closing the budget gap became more difficult.
Bayonne’s water and wastewater infrastructure were also in deep trouble. Although ratepayers saw large annual increases, the city water system’s infrastructure was decaying and costly upgrades were needed—with no funds to pay for them. An order from the Department of Environmental Protection would ban all development in the entire city—from major projects to single-family homes—unless costly improvements were made to Bayonne’s water and wastewater operations.
There’s no question that the Bayonne Veolia partnership has and continues to yield tremendous benefits for city residents.
Taxpayers are saving millions of dollars in lower borrowing costs because the city bond rating improved from a very poor Baa1 to an excellent A3.
The company also agreed to spend another $157 Million over the term of the Agreement on Bayonne’s water system upgrades to meet DEP standards. That opened the door to the MOTBY waterfront development and other projects throughout the City.
