Mayor: City Council action forces Hoboken to begin layoffs
Office of the Mayor announces:
“I deeply regret that this action must be taken, but unfortunately the City Council minority’s blocking of these essential bond ordinances leaves me no choice,” Mayor Zimmer explained. “Layoffs should not be necessary at all, but the City Council minority has intentionally created an easily avoidable budget gap that must now be addressed in a fiscally responsible manner.”
The refinancing of the bonds for the Municipal Garage would have saved the City $50,000. Instead of achieving this savings, the failure to refinance will require the City to unnecessarily spend $4.5 million to pay down the existing bond. This cost will have to be offset by staffing cuts in order to stay within budget and avoid a significant tax increase.
The capital improvement bond was desperately needed in order to address long neglected infrastructure needs including providing heat and proper security measures for the Police Department Headquarters and replacing broken equipment necessary for the City to plow snow, sweep streets, and pick up garbage. These desperately needed items will now have to be deferred or offset by additional cost saving measures.
Since the City Council minority blocked approval of these critically needed bonds, the City is now left with a $7.3 million budget gap. As a result, all City employees were provided with a general advisory concerning possible layoffs earlier today.