Hudson Reporter Archive

City can’t pay its bills

After a dramatic Sunday evening special City Council meeting that essentially paved the way for the complicated sale of Hoboken University Medical Center, the council meeting on Wednesday was expected to be routine. But with the Hoboken City Council, it’s never that simple.
The four council minority members aligned against Mayor Dawn Zimmer voted down a resolution that would re-allocate funds from the current budget to pay bills, leaving Business Administrator Arch Liston with no choice but to call the state to discuss how to pay approximately $2 million in expenses.
Councilwoman Beth Mason, who voted against the resolution, said there was a “lack of information” about where the money was going.
“This is a very telling time in the budget year to see where monies are moved and why,” said Councilman Michael Russo, who also voted against the legislation.
The resolution needed six votes to pass and would have moved money around in the current budget to pay bills. It failed by a 5-4 vote.
After the vote failed, city attorney Mark Tabakin, when asked by Council President Ravinder Bhalla what happens next, said “nothing good.”

Green building supported; questioned by public

The council voted unanimously to support green (environmentally friendly) development in Hoboken.
“By adopting this non-binding Green Building resolution, the council is reiterating the commitment to Green Building Policies, and stating support for the development and future adoption of new legislation that includes commercial and residential structures,” wrote Brandy Forbes, the director of community development, in a letter to the council.
Despite being passed unanimously, the legislation did not receive resounding support from the public.
“I’m glad you all support green, but you’re not going to do anything about it,” said Helen Hirsch, 91, a local government activist. “This is a game you’re all playing…only when there is money to be made will any of these things be really enforced.”
Forbes maintained that City Hall is becoming greener.
“The [old] light fixtures in City Hall have been replaced with more efficient light fixtures,” Forbes said, adding that the same was also done in the city’s parking garages.
Vic Zarish, the general manager of the Neumann Leathers Building, tied the resolution to issues surrounding his buildings. He wants the city to rezone the property so it can be replaced by residential and commercial buildings. So far, artists working in the building have fought such a change.
Zarish said that if the city approves more new construction, that would be the cost-efficient way to enable green development.
Mason disagreed with Zarish’s statement, saying that developers in town such as Larry Bijou have already turned existing properties around with green development.
Zarish said he believes the council is cowering to the group of artists.
“I don’t cower to anybody; thank you,” said 1st Ward Councilwoman Theresa Castellano.

Garage refinancing fails again

As a result of the hospital sale, the city needs to change the status of a portion of the bonds that financed building the midtown municipal garage from nontaxable to taxable bonds, since the new owners of Hoboken University Medical Center are for-profit. Not refinancing would cost the city approximately $4 million to change the bonds, while a refinance is advertised as saving the city $50,000.
Zimmer has said that a failure to refinance could cause the city to call for layoffs because an approximate $4 million budget hole would have to be filled. The measure previously failed, but Zimmer is hoping to avoid potential layoffs for next year by presenting the ordinance again. However, her council foes believe the city should use the surplus from the city’s Parking Utility to pay down the bond.
The council voted 5-4 to introduce the change of status, but it will still have to undergo a final vote. In order for the bond to pass at this final vote, it needs six votes. Thus, one of the mayor’s opponents on the council will have to switch his or her vote at the next meeting.

Public concerns; other business

Hirsch and Zarish also spoke during the public portion of the meeting.
Hirsch, who uses a walker, had concerns about accessibility in the city. “There are restaurants and stores I can’t get into,” Hirsch said.
The council agreed that the city should be cognizant of handicap accessibility.
The council allows residents to speak for five minutes about resolutions, ordinances, and during the public portion. Several towns include such time limits on speakers. However, Zarish said the rule is “annoying” and he thinks the American Civil Liberties Union should become involved. He said it’s difficult to get a point across while always looking at the clock.
In other business:
• The council authorized an $80,000 professional services contract with Ferraioli, Wielkotz, Cernilo & Cuva, P.A. for municipal auditing services.
• After a brief discussion, the council tabled an ordinance that would charge a $200 fee for a defendant in Hoboken to use the local public defender’s office.
• Due to the League of Municipalities convention in Atlantic City, the next council meeting will be held on Monday, Nov. 14 at 7 p.m. instead of the usual Wednesday evening meeting time. The League of Municipalities is an annual convention with representatives from municipalities across the state.
Ray Smith may be reached at RSmith@hudsonreporter.com

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