Garage Garbage

Which would you prefer:

1. Parks locked and neglected throughout the city. Delayed responses from the police and fire department in the event of an emergency as a result of layoffs. Cancellation of the Ragamuffin Parade due to lack of funds. OR
2. A $50 thousand annual bonus

That is what is at stake at the City Council meeting. This is where they will be discussing the refinancing of the city garage - yes, the same one associated with the hospital deal, unanimously approved by City Council on 10/30.

The garage bonds are currently non-taxable, which was fine until the the HUMC sale. Now that the garage is owned by a private entity, the same bonds need to become taxable, and that switch can only be accomplished through a formal refi.

Just like when you refi your mortgage, revised interest rates apply and guess what? They are lower now than when the bonds were originally issued, which translates to a nice $50 thousand annual savings for Hoboken.

If Hoboken does not refinance the bonds, the tax man cometh and this time with ongoing penalties.

To avoid this, the city would have to pay off $4.5 million of the bonds, all of which will need to come out of the 2012 budget. The Mayor has been very clear that this will translate to immediate layoffs and cutbacks in services. Just in time for Christmas.

Stop the madness. Email your City Council person and tell them to ensure that the required super majority votes (6) are there to approve the refinancing.

City Council Members' Contact Information:

Beth Mason
beth@masoncitycouncil.org

Mike Russo
councilmanrusso@aol.com

Tim Occhipinti
timothy.occhipinti@gmail.com

Terry Castellano
email@castellanoforhoboken.com

Jen Giattino
JenGiattino@jenforcitycouncil.com

Ravi Bhalla
rbhalla@hobokennj.org

Carol Marsh
cjmarsh09@gmail.com

Dave Mello
dmello@hobokennj.org

Peter Cunningham
cunningham@hobokennj.org

The Bottom Line

How would you feel if you were told that you could no longer move money from your savings account to your checking account? I know I would feel very threatened and worried if I could pay my bills.

That is exactly what is happening in Hoboken. On Wednesday, the city council failed to achieve the super majority of votes required to move line items from one bucket to another.

What does this mean for Hoboken?

Well, to begin with, it means we can't pay our bills, roughly $2 million dollars in expenses. Next, that means we will stop receiving services from our providers who have not been paid. Our credit ratings can be impacted, which in turn influences our ability to finance ourselves. Finally, it could ultimately mean a state take over, as our own city cannot manage its budget.

First a parking agreement and now a line item transfer.

Stop the madness. Urge your councilperson to vote in favor of this now.


More details at:

http://hoboken.patch.com/articles/city-unable-to-pay-roughly-2m-in-expenses

City Council Members Contact Information:

Beth Mason
beth@masoncitycouncil.org

Mike Russo
councilmanrusso@aol.com

Tim Occhipinti
timothy.occhipinti@gmail.com

Terry Castellano
email@castellanoforhoboken.com

Jen Giattino
JenGiattino@jenforcitycouncil.com

Ravi Bhalla
rbhalla@hobokennj.org

Carol Marsh
cjmarsh09@gmail.com

Dave Mello
dmello@hobokennj.org

Peter Cunningham
cunningham@hobokennj.org