City Council Approves $52 Million Transitional Year Budget

After weeks of workshops, hearings and meetings, City Council unanimously approved the 2010 Transitional Year budget on Wednesday night. 

The roughly $52 million budget—which covers the city until Dec. 31, 2010—includes a 5 percent tax cut for Hoboken residents.

"I believe 5 percent is a good start," said Second Ward Councilwoman Beth Mason. "I'm disappointed that it's not more. I believe we could have done more."

State law limits decreases or increases in local purpose taxes to 5 percent in transitional year budgets, said Business Administrator Arch Liston. 

The city had to approve the transitional year budget, because it is changing to a calendar year budget starting Jan. 1, 2011.  

"We brought some tax relief to our citizens," said Councilman-at-Large David Mello. "I know we can bring more." 

A point of contention during the meeting was the size and use of the city's surplus. 

According to the 2010 Financial Statement, the city has been operating with a $11.8 million surplus. The total surplus was $19.9 million, but roughly $8 million of that is reserved and can't be touched, and thus, is not available for tax relief.

"A lot of people don't understand," said Third Ward Councilman Michael Russo about the surplus. "At the end of the day, they want to know when that money is getting back into their pockets, if it ever is."

The budget was first introduced on Sept. 1 by Mayor a surplus in the budget is needed for "a rainy day."

The 2010 transitional year budget includes a $10 million surplus.  

During the Sept. 1 meeting the mayor added that "maintaining a proper surplus will repay taxpayers many times over because it will reduce the cost of running the City every year."