Dear Friend,I am writing to you today with a recap of Monday night's City Council meeting, which lasted over seven hours. Below are a few of the major issues covered at the meeting.
Hoboken University Medical Center
During the meeting we were given the opportunity to question representatives of Hoboken University Medical Center. As many of you are aware I have always expressed great concern over the hospital's finances. I am even more concerned after Monday's meeting. Last year the hospital lost $22.3 million and is projected to lose another $11 million this year. When I questioned CEO Spiros Hatiras about how he plans to keep the hospital running with such a disastrous financial picture, he explained that he expects the hospital to receive $10.7 million is "stabilization funding" from the state. Unfortunately, Mr. Hatiras said the hospital does not have a contingency plan in the event the state does not provide the hospital with that amount of funding. I truly believe the only way to save the hospital is to make serious budget cuts and start at the top.
4th Ward Council Seat
When Councilwoman Dawn Zimmer was elected Mayor she resigned her 4th Ward Council seat. Last night the City Council appointed Michael Lenz to be the new 4th Ward Councilman by a vote of 4-3-1. I abstained last night from voting for Councilman Lenz and would like to take this opportunity to explain my vote. First and foremost, my vote was not against Mr. Lenz, but rather a vote against the process in which he was appointed. I do not believe the selection process was as open, transparent and inclusive as it could have been. I truly do believe that the residents of the 4th Ward deserve a representative on the City Council, which is why I proposed holding a Special Meeting in their ward, and allowing residents who were interested in the position to be able to submit their resumes and have the opportunity to speak to City Council and their fellow residents. This also would have allowed many of the residents who are too busy to attend City Council meetings at City Hall to attend one right in their own ward. Several residents who spoke also felt this way. However, Mayor Zimmer and the Council majority rejected this idea and called for a vote instead and unanimously supported Michael Lenz. I look forward to working with him on the City Council.
Salary Cuts
Also on the agenda was an ordinance, which I sponsored, that would cut the salaries of the Mayor, City Council, and City Directors by 15%. However, the ordinance was voted down by my City Council colleagues. The residents of our city were hit last year with the biggest tax increase in Hoboken's history. The only way to provide serious tax relief is to make budget cuts and start at the top. Currently many of our City Directors are paid salaries that are scaled for Manhattan rather than Hoboken. In a few weeks the Mayor is expected to present her budget to the City Council and I will continue to fight for more cuts, so taxpayers get the relief they deserve.
My Comments:
The HUMC:
Beth and her husband Ricky were right about the HUMC all along. They were convinced that the Hospital Plan was not a good business plan and let the public know very early in the process. Ricky Mason, being a bankruptcy attorney in one of the nation's most prestigious law firms did research and using his judgement and experience knew the plan to restore the Hospital wasn't on sound footing from the get go. This I feel must be said by me as the editor of this blog since credit must be given where credit is due. Earlier today I posted a video of Peter Cammarano castigating the naysayers of the HUMC plan including Beth. Beth Mason was right all along and "Patronage Peter" was downright gullible or lying through his teeth all along. .
Beth is also conceptually correct in that cuts needs to be made ASAP especially at the the top. The problem is that the contracts need to be reviewed since I will be willing to make a bet that the Roberts Administration gave the Hospital Authority a very generous contract and probably has poison pills all over it. I hope I am wrong. One way to get rid of the current management would be to see if there is a failure to perform clause in the contract. Pretty standard stuff but do you think the Dave Roberts Administration included it? We shall see. That would give the city an out to possibly bring in another management team to unwind the assets and perhaps preserve the parts that are working. The Hospital in its present form can't exist.
4th Ward Council Seat:
On the other hand, I have no issue with the City Council vote putting Michael Lenz in the 4th Ward seat temporarily until the next election. If the shoe was on the other foot I am sure Beth Mason had she won the election woudl have expedited putting Ines Garcia-Keim or one of her other political supporters in the Second Ward Seat as expeditiously as possible. To the victor go the spoils. The 4th Ward special election will allow the public to give their input by voting in the 4th Ward Council person until the expiration of that term in 2011. It should not necessarily be the same process that appoints Directors. The City Council has statutory authority to make temporary appointments and it has the right to do so expeditiously. The 4th Ward deserves representation. If you don't Michael Lenz then that is fine. I know in that past he has ticked of many who have opposed reform and quite frankly that is to be expected. I judge him to be quite informed on the issues and his expertise on the budget should be a help to the City Council.
Salary Cuts:
The mayor's salary down to $87,000 a year? That is what Beth Mason recommended in the last meeting. Absolutely nuts I tell you my readers. At $103K , Dawn Zimmer's Mayoral salary is already down $26K from the zenith of the nice bump up Peter Camamrano gave himself at $129K just this last July. It is already lower than every fire and police captain, the City Clerk and probably some sergeants too. First of all if the goal to cut employee expenses by 25% you don't need to cut salaries 25%. You can trim benefits like Health Insurance and Hoboken is self-insured so that cut is a no-brainer. You can also use attrition as well.
While I am all for additional tax relief you can't cut Director's salaries too much or you won't be able to attract the appropriate talent. This reads as sour grapes and an attempt to handicap the Zimmer Administration in getting the help it needs. Peter Cammarano created additional Director positions and Beth Mason had no problem then.
If Beth wants to truly help the taxpayer, she can re-open the Church Square towers PILOT issue and have those who can afford to pay more into the PILOT that goes back to the City. That would be a good start. ◦
