Budget Blow Out – City Council Tonight

Finance Director Nick Trisante is giving the highline. Here are all the COST DRIVERS:

Health Care Cost is close to $15MM, actual:  $14,800.000
– built in anticipated 10% increase, not actual but scaled in accounting
Pension – this is a full complete figure:  $3,266,918
7.7% increase is for Police & Fire
– an amendment will be required to adjust 7MM
Retroactive Pay – this is approximate – $3,000,000
– 2.5 years of salaries and wages not yet paid $2,900,000
Deferred Charges – $1,619,392
Salary Settlements – $1,500,000
– this relates to those ridiculous benefits carrying special NJ vacations and sick time over years.
It is now being capped to two years.  It is not yet in affect.  Speculated to begin 2010.
Irresponsible Debt Management – $1,200,000
– Nick Trasente said it was done for a full year instead of the needed four months
– Pier C bonded cost is in this but was not necessary – a $5,000,000 bond
Decrease in State Aid – $505,000  another $380,000 is on hold by the State.
Decrease in Revenue – $160,000  cardboard recycling went down

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