New Providence’s police department renovation is now estimated at about $13.5 million, up from its original $10 million estimate. On Tuesday, Nov. 10, the borough council introduced an ordinance that would appropriate another $2.2 million for the project and authorize a proposed $2.09 million bond or note issuance to cover the gap.
The project was first approved in 2023, when construction was estimated at $10 million, according to TAPinto New Providence. Council member Lisa McKnight attributed the increase to higher material and labor costs since that estimate.
The council also discussed whether borrowing fits the borough’s finances. Council member Kathleen Dolan said rising costs were difficult to forecast three years ago and described borrowing as prudent if the borough can secure a reasonable rate. Bernadette Cuccaro said Jim Testa consulted the borough’s bond consultant, who advised that the proposed bond sale fits within the borough’s budget scope.
Why the Price Tag Grew Without the Project Growing
Officials said the project’s scope has not grown since 2023: no building area has been added, and some proposed features have been dropped. Bernadette Cuccaro said the borough declined some additional elements proposed by the Union County Improvement Authority. The proposed additional funds are expected to include anticipated or escalated costs of $2.5 million or less.
Council member Nadine Geoffroy pointed to the roughly $2 million bond sale and $1 million grant as a $3 million increase in project funding, and asked whether the scope could still be changed. She said the facts and research should be fully understood before the council proceeds. McKnight said the roughly $2 million increase was unavoidable at this stage and that she wanted to understand its full effect on the borough.
The Union County Improvement Authority requires the borough to show that all project funds are available before construction can begin, rather than starting with appropriated funds while seeking more money later. The proposed bond sale is scheduled for January 8, 2027. In an October announcement, the borough said it received a $1 million grant through the UCIA’s 2026 Capital Project Grant Program for the Public Safety Building addition and renovation. The grant came from a $10 million capital program for Union County municipalities and did not require a local matching contribution from taxpayers, according to the borough.
What the borrowing framework establishes
The borough’s 2026 Financial & Cash Management Plan and 2025 budget presentation provide context for the borough’s financial planning. The 2025 budget presentation says the multiyear capital plan is intended to structure capital debt and manage it through the operating budget. See the Borough of New Providence’s 2026 Financial & Cash Management Plan and 2025 budget presentation. The UCIA’s 2026 grant-program application says municipalities are not required to provide matching funds and that the authority may finance up to 100% of a requested amount. That grant condition is separate from the borough’s proposed bond borrowing.
Earlier Debate Over Financing and Asbestos
The financing debate follows an earlier council review of a police headquarters proposal estimated at just under $10 million. Officials considered a 20-year bond that would add about $135 a year to an average homeowner’s tax bill, according to citizenportal.ai. That discussion also identified asbestos and construction-sequencing questions for further finance committee review. Council member Nadine Geoffroy said the Finance Committee had in the past put forth a schedule showing the budget impact of large-scale borough projects.
Cuccaro said the proposed estimate went to the public safety committee in August. She said she did not know who on the committee shared it with the full council and heard no feedback afterward. The next council agenda is expected to include an amended capital plan as the borough works through the financing details.
Officials Say the Current Building Is No Longer Workable
Council member Matthew Cumiskey said the borough must either issue the bonds or decide that the financial impact on residents is too great to proceed. He described the police department’s original space as unacceptable and said the department would have to move back there if the project does not move forward. Cuccaro said the original building is inadequate for current needs and does not conform to Department of Corrections specifications.
Separately, the council approved a $100,000 Community Development Block Grant allocation for an ADA-accessible bathroom and automatic door entry system at the new police station, a feature officials say will accommodate all community members and visitors.
