Hoboken Council Passes 2010 Budget 7-2

The City Council approved a close-to-$100 million budget for the 2010 fiscal year Wednesday evening, although several council members said they voted for the measure reluctantly. The vote was 7-2 with Second Ward Councilwoman Beth Mason and First Ward Councilwoman Theresa Castellano voting no. 

The exact amount of the budget is $99,835,721.12, which allows a tax cut of 0.6 percent, according to Councilman Michael Lenz. During the meeting he also explained that the budget is fully funded. The total amount in taxes to be paid by Hoboken residents is a little more than $60 million.

The budget approval was far behind schedule. There are roughly three months left in the 2010 fiscal year.

During her campaign Mayor Dawn Zimmer said she'd cut the budget by 25 percent. 

"The hypocrisy is staggering," said Third Ward Councilman Michael Russo, who voted in favor of the budget. "We're spending money like drunken sailors."

Russo proposed to cut the budget by enforcing a residency law and laying off those city workers who do not live in Hoboken. 

Roughly 80 percent of the budget consists of personnel costs, Lenz said. 

Councilman-at-Large Ravinder Bhalla—who ran on the mayor's ticket and voted in favor of the budget—said he was hopeful, and said the budget truly reflects the cost of running the city. 

Councilman-at-Large David Mello said he voted in favor, because it means that the city may regain control of its budget from the state.  In 2008, a state fiscal monitor was appointed to oversee Hoboken's finances after city officials were not able to pass a balanced budget. The monitor, who has the authority to overule city council votes, may be removed if state officials approve the new budget.

"It's time to move forward," Mello said. 

Sixth Ward Councilman Nino Giacchi voted in favor, but said he did so reluctantly. "You're putting me in the position that I have to vote yes," he said.

Giacchi especially disagreed with the $4.2 million penalty that was included in the budget, which the city needs to pay the state after illegally implementing a pension program. 

"I apologize to you, to the public," Giacchi said. "We fell short again, I'm sorry."