In accordance with New Jersey law, adequate notice of this meeting has been provided to the Star Ledger, the Jersey Journal, and the public at large establishing the date, time, and location of this meeting.

In addition, the agenda for this meeting was disseminated on October 17th at the time of preparation and posted on the city's website.

Roll call, please.

Council.

Gonzalez.

Present.

Kelly.

Here.

Here.

Raymouth.

Here.

Scott Roundtree.

Present.

Silva?

Here.

President Klump.

Present.

Council President, Council Members, we are on page four of the special meeting agenda.

Resolutions.

Seven R four A S is the cancellation of commitments payable and 2024 appropriation reserves.

Council as a whole to adopt.

Roll call.

Council?

Yes.

Gonzalez.

Yes.

Kelly.

Yes.

Ray Month.

Yes.

Scott Roundtree.

Yes.

Yes.

President Klump.

Yes.

7R8 A S through C S all regarding the 2025 municipal budget items.

A is authorizing the budget.

B is amending the budget.

And C is the final approval of the 2025 municipal budget.

Council as a whole to adopt A through C.

Before we start, before we vote, is there anything from the council or administration?

Yeah, I just have a question.

From the original, it's now nine ninety.

I believe the original number was nine sixty-seven or not range.

Is there a reason why?

Mr.

BA.

Good morning, Eric Pennington Business Administrator.

There is uh uh two council uh Monsil with you.

Um there is a reason for the difference after going through the budget and making the appropriate changes and doing the uh calculations, a number that you have as the final number is what the uh ultimate budget will be.

And while I'm here, I'll anticipate one question.

Uh I'm gonna anticipate a question that I got from Councilman Gonzalez, which I think is uh sort of an appropriate question for everyone else.

You wanted to know how the uh rate would be affected by the ultimate change, and indeed the rate went down from four point zero one six to four dollars per 100 after the ultimate calculation.

I want to say that the ultimate rate went down from four point zero one six per 100 dollars of assessed valuation to a flat four dollars, so we were able to have a decrease in what the uh ratepayers will ultimately see at the end of the budget once it's adopted.

So I think that's important for everybody to know.

I think two that council Councilman.

Right in the tax rate.

That is right.

So appreciate that.

I think also to Councilman Gonzalez's question.

He's an extraordinary budget chair, and he comes with all these great questions.

And I've spoken with uh our budget director, Darling Tate, our uh acting finance director, Ben Guzman.

Um, and the budget, this past budget actually was handled digitally, but going forward, it'll be done uh more efficiently.

We plan to start working on it immediately for the 2026 budget.

I expect that Councilman Gonzalez will be checking me and make sure that we're doing that.

And I'm prepared to give uh monthly updates or or more frequently as necessary to make sure that we don't have a spending plan that we actually have a real budget in 2026, and so I prepare to work with uh Councilman Gonzalez to make sure that the full council is aware of where we stand as we go forward uh periodically.

Thank you.

Council anything else from the council BA.

Uh Councilman Ramos.

Uh thank you, Mr.

President.

Um, to the BA, you know, I I do want to say that I appreciate you following up on a lot of our inquiries.

Um it put put us in a kind of a tough position this year because the budget was introduced so late in the in the year, it limits the council's ability to provide input, feedback, and suggestions on how we can you know maybe reduce expenditures.

Um, be that as it may.

I know there are a few other towns around the state that are in the process of finalizing their budget as well.

But you know, I really feel that we have to do better when it comes to the budget process.

I know Councilman Gonzalez, as the chair has offered a lot of uh suggestions, he's been very proactive in asking questions.

But as we move into next year's budget process, um we we anticipate some of the same challenges you had this year that you had last year, especially uh pending revaluation, and I strongly encourage the administration as you prepare next year's budget that you know we need we need to tighten our belt a little bit and look to reduce expenditures, especially we're gonna look to potentially borrow money again uh to deal with the offset on on county taxes and and potentially increase taxes in 2026.

So as you go through the process of preparing next year's budget, we gave some suggestions the other day as far as things that may be may seem frivolous or small, uh, but I think you know, every penny counts uh when it comes to um the kinds of things that the city is spending money on, especially as we look toward some tough days ahead.

And um, it's uh tough consideration for me because I'm usually um critical when things come to us late, but you know, I I understand that the alternative is not a good alternative.

You know, having the state come in and potentially adopt the budget for us would put us in an even worse position than the position we're in today.

Yes, sir, Council President, to Councilman Ramos.

Uh, your points are well taken.

And uh, you know, I don't want to put too fine a point on it, but no uh reduction is too small given where we are.

We do have fiscal challenges, and to your point, next year we will have similar challenges until the revaluation is done, so we will have an increased number that we're gonna have to pay to the county because of our imbalance and our ratio.

Uh so we do have to look at uh uh every area we can to make sure that we make uh prudent decisions.

Um this past year, though, we did almost finalize all of the collective bargaining agreements.

There's still a couple out there.

The uh the fire officers union, we still have to deal with Genesso, the nurses union is still pending.

Um, and we're gonna have to start negotiating going forward on that.

Uh so we have some retros that will be uh in next year's budget as well that we're gonna have to account for.

Um, but we have to, to your point, make sure that we look at everything and be careful and prudent with with what we do, and uh we will continue to do so and certainly take your input and suggestions and as we move forward.

Thank you, Councilman Gonzalez.

It's uh I just want to reiterate what Councilman uh Ramos indicated is it it cannot be business as usual.

Uh when we you have, let's say in this case to this year 50 million dollars, next year the as a mayor indicated might be 30 million dollars.

So we have to we have to do some adjustments because uh it cannot continue to be uh let's say what we have been doing forever, somewhere we have to cut.

Otherwise, otherwise the state may want may ask us to cut and uh it would be even worse.

Yes, yes, sir.

Yeah, you're absolutely absolutely right.

Uh we do have to be prudent.

Now we also have to be mindful that what drives much of this is salaries and health care costs.

Those are the things that we have.

We have done uh I think we've done a fairly phenomenal job on the health care cost front.

So with the reference-based pricing that the mayor has uh helped us implement, uh the more uh employees who opt in to the reference space pricing, and I've opted into it.

I'm just you know, I don't really talk about myself with respect to what I do, but I have opted into the reference base pricing.

I've had no issues with it whatsoever.

We need to look at that, and that will help uh with costs um as we as we move forward.

So we'll continue to look at health care, we'll continue to look at uh personnel at minimum.

We'll have to uh continue with a probably a freeze on hiring, except for um you know those areas that are that are critical.

Mr.

BA, one one area I believe the reserve for collectible taxes.

We have this uh this budget 23 million dollars.

I I believe that we can do better than increase and increase the collection rate.

Uh if we let's say plan for whatever sale, tax sale uh before the end of the year, so that we can increase that rate.

Is it is I believe it's too it's that's like five percent more or less or ten percent uh of on collectible taxes.

I believe that if we reduce that to two or three percent, uh we would we might have uh let's say a lower tax rate for uh residents.

Absolutely.

We have an aggressive tax collector, and every now and then, quite frankly, I have to you know tell it, whoa, slow down a little bit, but perhaps you're right.

Um we'll have to let let the range loose.

In fact, um some of the uh uh pilots that we have, the teachers village, for example, is likely gonna go into the tax sale because they have uh uh not paid what they're supposed to pay.

We have to look at all of the pilots and make sure that they're in compliance.

We'll be sending out letters to them and others, and we expect that that should increase the collection rate, so the the amount from collected taxes uh should be adjusted appropriately.

But your point is well taken.

We're looking at every avenue uh with respect to pilots, taxes, and making sure that the uh tax sales are out there and are appropriate.

Some of the impact of the tax sales will be that once the the tax sales are uh they go through and somebody purchases the default, then they're gonna have to come up and pay the back border bills and make sure everything is uh else is done.

I think with Teachers Village, if I'm not mistaken, they owe about $400,000 in water.

So we anticipate once the tax dealt takes place, whoever purchases that is going to pay for the delinquent water bill as well.

So your point is well taken.

We will uh aggressively move forward and get that addressed.

Thank you.

Um so uh let me uh any else councilman Ramos.

Sorry, Council President.

And and at some point soon uh BA, if we can just hear from the administration as to what the plan of action is to address you know the 30 and 20 million dollar loans that we've secured from the state to deal with the um equalization issue because that's that's already been borrowed.

I know the state has timelines on when they expect that money to be paid back.

So just strategies on what the administration is preparing to do to pay that money back.

So we don't need to talk about it today, but soon if we can.

Thank you.

Absolutely.

All right.

So let me just wrap this up.

So uh let me just say, you know, we I realize none of us love the position we're in.

We understand and that it is not the administration's fault that we're in this position.

Um so I want to say I appreciate the the work that the mayor, the BA, the uh finance team that you have, uh Darlene and Ben and Joe uh have done to make this budget uh one that is less uh what's the word I'm looking at less painful than it could have been.

Um so I would say I appreciate that, and we all understand and reflect what could happen if the budget is not passed and the state coming in.

Um services could be cut, uh issues could happen, furloughs, etc.

So this is something that we are um well, I'll let me speak for myself that I support at this point.

And hopefully look forward to my colleagues also voting for the budget so that we can move forward and for next year being work earlier and be in a better position for when the budget comes up for next year.

With that being called, uh councilman, council.

Just wanted to jump in.

So BA, uh I know you've heard it all uh uh uh around the the diocese from from all of our colleagues about the position and things that we're in.

Uh but I just think it's just uh when we talk about what's happening down the line, right?

Our down the line really should be starting now.

And and I know that uh and and hopefully um even with our budget uh chair and and you what you talked about indicated earlier, uh that we will get in front of what we need to do uh for 2026, uh barring an update of where we are in re-evaluation, how far is that process moving, where are they now, so that we can be able to wrap our arms around that, some other revenue generating ideas that can be able to happen.

Um also looking at individuals that may um you know uh maybe in arrears of some other areas, all enter it uh into kind of things that would you know be able to help us look at where we are revenue wise, I think would be would be good and prudent uh for us to be do to do that and to continue to have conversation and to have a uh presentable uh budget to us earlier that we can be able to work through for the the 2026 year um and see where we are comparatively uh to what it is that we need to do uh to help move the the city out out of this you know kind of situation that we're in.

I'm confident uh and hopefully that we can you know we can get there working collectively and collaboratively uh to be able to do that, and that you know requires all of us uh together uh and none of us you know trying to you know work on a separate island uh to get somewhere where we need to get to for the benefit of the residents uh of the city.

I think we we don't want to lose focus of that that everything that we do here is for the benefit of the residents of the city.

Um and so as we continue to do that uh and move forward, you know.

I know we're um you know, kind of locked in, uh, but you we we want to make sure that we're prudent, you know, as we move forward.

So absolutely.

I know council president, you are uh anxious to move on, but councilman uh council actually did raise one other point that I do want to address because I think it's important that certain businesses out there understand the aggressive approach we intend to take in the South Board.

There are several airport parking lots that are operating unlawfully.

Uh we are either in the process of shutting them down or making sure that they go through the appropriate zoning process.

Um I see uh Jennifer Carillo Perez is here in the audience, her partner El Narda Webster represents some of those companies.

They have brought in um checks of uh half a million dollars to bring themselves current.

We expect that that's gonna continue, but they can't just pay their way out of the situation, they have to be in compliance.

They have to be zoned appropriately, they have to have the uh uh proper processes in place to make sure that we are collecting the revenue that we are entitled to, and we will be aggressive to shut them down.

They're on McClellan Street from Freeling Hazen Avenue, they know who they are.

Um I'll be working with the law department to get in order to show cause to shut them down.

And so those people who are listening to this now, they need to get into compliance.

We need the money, uh, but we don't need the money uh to the extent that we're gonna allow these businesses to operate illegally.

So we'll be on top of that and make sure that we collect as well.

Thank you.

All right, with that being said, roll call.

A B and C Council, yes.

Yes, Kelly, yes, no.

Ramos?

Yes.

Scott Roundtree.

Yes.

Silva?

Yes.

President Crumb.

Yes.

Motion to adjourn.

Council?

Yes.

Kelly.

Yes.

Ramos.

Yes.

Scott Roundtree.

Yes.

Yes.

President Crump.

Yes.