Paterson council approves $26.2 million in bills after debate over timing of vendor payments

The Paterson Municipal Council voted to approve payment of $26,194,283.05 in bills during its Oct. 14, 2025 workshop, a roll-call vote that ended 7 in favor, 2 absent.

Council members debated whether a vote to “pay bills” means vendors are immediately paid, and questioned staff about oversight for major projects and the timing of cash withdrawals.

The bill list included two payrolls and a summary of disbursements totaling $11,033,436.74, with computer checks totaling $15,160,846.31. The list also showed a board of education payment of $6,000,708.92 and large recurring items including street-lighting, solid waste, and insurance. “We have before us a bills list of $26,194,282.05,” said a member reading the packet. Councilman Mendez pressed the administration on the contract for the River Street sewer reconstruction and repaving project, noting that the council had approved a third-party firm to oversee the work and that an on-site representative had been required by the contract.

“On the payment of bills I’ve been looking to see if I see any payment for the company that we hired to oversee the project on River Street,” Mendez said. “When we approved the contract there will be a person assigned to the site at all times. I’ve been there twice and I have not seen a person on site.”

CFO-level staff told the council that timing of actual cash availability varies. “Sometimes checks come up here, we pass them, but we don't have the cash. So we hold checks,” a city finance official said, adding the city holds payments during high-expense months such as when a large pension payment is due.

Council members pressed the legal office about whether the practice — passing checks while funds are not yet withdrawn — is consistent with law and with vendors’ expectations that payment follows a council vote. Councilman Mendez framed the issue as a governance and vendor-relations problem: “When we vote payment of bills, we [appear to] vote for something that you’re gonna get paid and still those vendors are getting are waiting to get paid,” he said. The council asked for clearer records on timing and cash-settlement practice.

After debate, the clerk called roll. The record shows Councilwoman Cotton, Councilwoman Davila, Councilman Jackson, Councilman Kalik, Councilman Mendez, Councilman Omar and Councilman Uddin voting “yes.” The item was adopted.

The council also flagged several other agenda items for consent and regular calendar placement, and agreed to return to a handful of items later in the meeting.

Votes at a glance: Payment of bills — $26,194,283.05 — adopted on Oct. 14, 2025; roll-call recorded 7 yes, 2 absent.

The council directed staff to provide follow-up detail about: (1) whether and how often checks are cut but held pending cash availability; (2) contract compliance and on-site supervision for the River Street project; and (3) any vendor complaints about delayed disbursement. Council members said they expect that information before similar votes in the future.