Additionally, we have proposed reducing the reliance on surplus by $2.4M annually to responsible levels that we feel are sustainable going forward.
Combined, these changes seek to reduce the impact on residents while still protecting the City’s long-term financial stability. As Diane said best at our last Council meeting: “We should be doing everything we can to reduce the tax burden on residents.”
Over the past several weeks, we worked closely with our Council colleagues and the administration to incorporate feedback and refine the proposal. The amendment seeks to lessen the tax burden, rebuild surplus reserves to healthier levels, reduce reliance on surplus funding, and better position Hoboken heading into next year’s budget cycle.
In the end, we decided not to move forward with a vote on the amendment at the City Council meeting last week so discussions could continue and the proposal could be further refined before the next Council meeting.
Where things stand now
Although our proposal was the only detailed amendment formally proposed that night, CM Russo and CM Presinzano also submitted more of a framework for discussion with the administration to identify additional possible cuts. They are meeting this week to discuss those ideas further, and I am hopeful additional reductions will come from that process.
Our proposal already incorporates some of these concepts, including healthcare savings and eliminating the Director of Social Services position through an administrative reorganization.
Many of the concepts CM Russo and CM Presinzano hope to discuss - including labor negotiations, healthcare changes, and operational efficiencies - are part of broader conversations we have been having around long-term structural changes, and savings.
But as I have said before, many cannot realistically be implemented within this budget cycle, and some could impact services or financial stability if pursued too aggressively.
Ultimately, the budget needs five votes.
Right now, Diane, Ruben and I are at approximately 10.5%. Mike and Paul are pushing for lower. Other members of the Council submitted an alternative proposal today that I have not yet had the opportunity to review. But Diane, Ruben and I remain focused on getting the number as low as reasonably possible while still protecting the City’s long-term financial stability.
So... more work to do.
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