Hoboken Mayor, Council Members Clash Over Budget Amendment

HOBOKEN, NJ — An amendment to a hotly disputed Hoboken municipal budget has passed a City Council vote, but not without some political fireworks.

Last week, the council approved an amendment to the City of Hoboken’s 2019 operating budget by a 5-4 margin. It will reduce a previously proposed tax increase of 2.8% to 1.7% by making spending cuts. (Watch a video of the June 5 meeting here)

The annual city budget is for $117.6 million, corresponding to a 1.7% increase, which would result in a $7.61 increase per $100,000 of assessed value for municipal purposes.

Councilmembers Tiffanie Fisher, Jen Giattino, Peter Cunningham, Ruben Ramos and Mike DeFusco voted in favor of the amendment and budget reduction.

Councilmembers Jim Doyle, Vanessa Falco, Emily Jabbour and Mike Russo voted in opposition.

‘FICALLY IRRESPONSIBLE, POLITICALLY VINDICTIVE’

On June 6, Mayor Ravinder Bhalla issued a scathing statement via Nixle about the council’s budget amendment, which blasted Fisher and Giattino for spearheading the effort.

Bhalla wrote:

“I want to take this opportunity to update you on the city’s 2019 budget. This year, my administration has done its best to introduce a fiscally responsible budget that sufficiently funds city services while is responsible to taxpayers.

“The budget introduced by my administration included sufficient funding for critical projects including $114,000 for the free HOP bus service, $96,500 to maintain our Office of Constituent Services, and the traditional costs of municipal services including public safety, snow removal, sanitation, and recycling. In addition, the capital budget my administration put forward included $5 million for water main replacement, $2,450,000 for road resurfacing and transportation improvements, as well as funding for Hoboken’s Northwest Resiliency Park.

“However, I’m disappointed by certain portions of amendments to my administration’s budget, introduced by Councilmembers Fisher and Giattino. I believe these amendments are fiscally irresponsible and politically vindictive. Originally, their amendments posed a drastic $836,000 cut to the budget that was thankfully rejected by the New Jersey Department of Community Affairs, which must approve all municipal budgets.

“Fisher and Giattino’s new amendments, which the Department of Community Affairs has expressed that ‘concerns remain’ about the underfunding of the budget, slash the city’s legal department by nearly $100,000, which had already reduced spending by $400,000 in previous years. The cuts to the legal department could substantially jeopardize our ability to continue fighting the Monarch waterfront development, pursue additional affordable housing initiatives, and other critical services offered by the city that require legal representation.

“Second, their amendments target my office and eliminates a member of my staff, Jason Freeman, who goes above and beyond to respond during emergencies, and other important duties. Already, the Office of the Mayor is one of the most understaffed in the region, as documented by our legal department. It’s unfortunate that the amendment targets his employment, as one of the hardest working employees in City Hall.

“Third, the amendments cut the Hoboken Police Department by approximately $100,000, with cuts including equipment and service agreements requested by Police Chief Ken Ferrante. Finally, the budget amendments have the very real possibility of cutting our Office of Constituent Services, and will likely force layoffs and elimination of personnel.

“In the interest of transparency, I want to share with you some of the substantial budgetary constraints beyond our control that impact our overall costs and tax rate this year. Unfortunately, we’ve faced skyrocketing increases in our state pension system costs, which have increased over $1.2 million since last year for a total of $11.1 million. In addition, due to the increased cost of solid waste hauling and recycling throughout region, we’re facing a $345,000 increase from last year, as well as an increase of $1.38 million salary and wages due to previous contractual obligations with various public unions, with 70% of that amount related to public safety personnel.

“Despite these challenges, and the financial constraints imposed by the council that could undermine the city’s ability to operate efficiently, we will make the best of what is given to us and work to continue providing critical services for Hoboken residents.

“A final thank you to our city directors who worked tirelessly to pose fiscally responsible budgets for each of their departments, as well as Councilmembers Doyle, Falco and Jabbour and Russo for recognizing the nuances of the budget and opposing Councilmembers Giattino and Fisher’s fiscally irresponsible amendments.”

Councilwoman Emily Jabbour posted the below message on Twitter about last week's council vote.

‘SPENDING CUTS TO PROTECT TAXPAYERS’

In staunch opposition to Bhalla's claims, Council President Jen Giattino and Councilwoman Tiffanie Fisher said the amendment makes responsible spending cuts to protect the best interest of Hoboken taxpayers.

According to a joint statement from Giattino and Fisher:

“We're incredibly proud of this municipal budget containing a reduction in the original proposed tax increase because it is fiscally responsible, it supports essential city services and public safety and it was arrived through a thoughtful process with input from the City Council, the administration and the community. We are thankful to the State Department of Community Affairs for their assistance in finalizing the budget and ensuring that it met all legal and fiduciary standards. We are pleased that this compromise provides full funding for legal services to continue addressing crucial issues including our Tenant Advocate and the Monarch project appeal that was recently announced. Hoboken taxpayers deserve nothing less than this type of effective local governance that ensures taxpayer resources are spent wisely.”

Councilman Mike DeFusco, who narrowly lost the 2017 mayoral election to Bhalla, also offered support for the amendment and reduced city budget.

“Mayor Bhalla's distorted view of reality when it comes to the municipal budget is almost as troubling as his continual misuse of taxpayer resources for his own petty politics. The DCA absolutely did not reject the city budget as the mayor said in his political attack delivered on a city platform, and the only potential job cuts in this budget will come from a bloated mayor's office that has increased its spending by 40% over the prior administration and engaged in highly questionable political hit jobs. It's unfortunate Mayor Bhalla feels the need to keep personally attacking two dedicated community leaders who have done so much for our city in Councilwomen Giattino and Fisher, and I hope that all residents can see through his bizarre rhetoric and understand that the City Council is doing its job to protect taxpayers while the mayor only cares about political attacks.”

Fisher and Giattino also blasted the way the mayor handled the aftermath of the council’s June 5 amendment to the budget.

“Although we agreed many of the reductions with the administration, we did not reach agreement on all,” Fisher wrote in a June 10 email to her constituents. “And instead of moving forward together, at the end of last week the mayor and the city’s communications director took to email, and once again the city’s Nixle alert system, to send out political attacks in an attempt to discredit all of us who worked hard to deliver the lowest taxes possible. He manufactured crises where none exist and specifically used fear mongering about topics like Monarch and our Constituent Services Office that are important to Hoboken, and to 2nd Ward voters in particular, to get you to vote against us in the upcoming election.”

Giattino agreed with Fisher that the use of taxpayer-funded staff and Nixle communications to send out “politically driven emails” was an example of petty politics. She also questioned several points Bhalla made in his June 6 Nixle alert.

According to Giattino:

• “The Department of Community Affairs did not reject the City Council budget amendment. They approved both budget amendments submitted by the council on May 1 and June 5 as noted above.”
• “The City Council cannot fire employees (except for certain directors and it requires six votes). It can only appropriate money to line items in the municipal budget. It is the mayor who determines how to spend the funds allocated by the council including who to hire and how much to pay (as long as it falls within the salary ordinance).”
• “The City Council supports the Office of Constituent Services and made no changes to the budget introduced by the mayor. If the mayor decides to remove this office that is solely his choice.”
• “The adopted special counsel budget line is $1,020,000, this covers the legal costs of the city. Year to date we have spent less than 30% of that line. There is sufficient money to pay for Monarch, Union Dry Dock, a tenant advocate and all of the other issues the city faces. Historically the special counsel line item has been over budgeted to generate surplus. Our Mayor has shown that he needs to have his purse strings kept tight and that is what the majority of the City Council decided to do.”
• “The mayor increased the salary and wages in the Mayor’s Office by 80% since Mayor [Dawn] Zimmer left office in 2017, while reducing the responsibilities of his office by creating a separate Constituent Service Office. He made a campaign promise not to take a second job, but then took one a month into his first term and has required taxpayers to pay for staff ever since. The City Council has amended this line item to be closer to the cost of [former] Mayor Zimmer’s office in 2017. The mayor also has the ability to reduce the salaries of his staff, instead of reducing headcount, staff which he uses as part of his political operation with tax dollars. His staff are the only department to see raises between 10% to 28% while the majority of our city employees are lucky to get a cost of living increase.”

Giattino and Fisher also criticized the Mayor’s Office when they were asked to exit City Hall last month, claiming that they were “bullied” into leaving the building on request of Bhalla’s administration while looking into a matter involving the potential eviction of a Hoboken resident.

A spokesperson for the Mayor’s Office said their claims were “disingenuous,” and that Giattino and Fisher were politely vacate the building due to the business administrator's policy requiring an appointment to see the city director and staff.”

• See related article: Hoboken Councilwomen: ‘We Were Bullied Into Leaving City Hall’

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