The Paterson Municipal Council voted Thursday to issue third‑quarter estimated tax bills using a 2% municipal tax increase and to adopt a $54,527,765 emergency temporary appropriation to cover city operations in June and July.

The council’s vote followed an extended public and council debate about an administration proposal that had initially included a 5.6% tax levy increase. Council members said they rejected the larger increase in earlier sessions and insisted the estimated bills be set at 2% so the city could meet state requirements tied to transitional aid.

Chief Financial Officer (CFO) (unnamed in the record) told the council the estimated tax bills were being prepared on the 2% municipal levy the state requires when a municipality is seeking transitional aid. The CFO also provided preliminary figures showing the city’s municipal tax base increasing from about $170 million last year to roughly $174 million this year and said the school portion of local taxes was up about 4%.

Council members pressed for clarity on the overall effect of school, county and municipal changes on a typical taxpayer. The CFO estimated the increase for an average assessed house would be roughly $215 for the year, a figure council members and the public disputed and asked the administration to break down by assessment band.

Councilwoman Mims told colleagues that approving the temporary appropriation was necessary to avoid a city shutdown and to ensure employees were paid while the administration and council continued budget negotiations. “This tonight ensures us that the tax bills…will be at the 2%,” she said during the debate.

Councilman Jackson asked for more time to review budget materials; the CFO confirmed a USB copy of the budget had been provided and that the state’s transitional‑aid determination was expected in early July. Council members also discussed how the administration budgets for filled and vacant positions, and whether anticipated state aid had been built into departmental spending lines.

Vote and next steps
- Item 51 (authorize issuance of estimated tax bills for third quarter 2025): adopted, 6 in favor, 1 opposed, 2 absent. The motion to send bills at 2% passed by roll call. (Recorded roll calls show multiple council members voting yes; the tally announced was 6 yes, 1 no, 2 absent.)

- Item 52 (calendar year 2025 emergency temporary appropriations for June–July 2025): adopted, 6 in favor, 1 opposed, 2 absent. The appropriation will fund operations through July; council members said they will meet in July to review line‑by‑line cuts and the DCA/DCA‑transitional‑aid letter once it arrives.

Why it matters
The 2% levy and the temporary appropriations are a stopgap measure that keep city services running and tax bills on schedule while the council continues to negotiate and review the administration’s introduced budget. Council members repeatedly said the 2% figure was a legal minimum tied to seeking state transitional aid and that larger increases would be revisited only after the state letter arrives.

What council asked for next
Council members asked the CFO and administration for: a clearer breakdown of how the combined municipal, school and county increases affect households by assessment band; a full line‑item review of vacancies and wage assumptions; and the transitional‑aid letter when it is issued, expected in early July. Council President Alex Mendez and other members scheduled a line‑by‑line review meeting in the coming week.

Ending
Council members described the votes as temporary and conditional: the tax bills will go out at the mandated 2% to avoid late billing and to preserve payroll and services, while an in‑depth budget review will determine whether additional changes are needed once state aid is confirmed.