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Paterson council approves budget introduction and a series of finance measures; several items moved to regular review
Summary
At a Sept. 9 special meeting the Paterson Municipal Council introduced the 2025 municipal budget (3.5% introduction), approved finance motions to adjust reserve and cap accounting, advanced an ordinance on cap banking and authorized a settlement after executive session. Several agenda items (including a UEZ plan) were moved to regular for more review.
The Paterson Municipal Council on Sept. 9 introduced the city's 2025 municipal budget and approved multiple finance measures, while deferring other items for further review.
In a procedural vote on Item 2 (resolution 25426), the council voted to introduce the calendar-year 2025 municipal budget by title only. Administration officials said the introduction reflects a 3.5% levy increase and uses $1,000,000 from reserves with DCA concurrence to narrow an earlier 5.6% proposal. Council President Mims said the city faces a $33,000,000 deficit and that the introduction is needed to avoid service interruptions; the introduction passed on roll call. The introduction is not final adoption; the council and administration said further work will continue before final adoption.
The council also adopted a finance resolution (Item 3, Res. 25:427) to increase the reserve for uncollected taxes so staff may present to the local finance board; the vote was 8 in favor, 1 against. Separately, Item 6 (Res. 25:430) authorized an application to the local finance board to move $780,000 from inside the statutory cap to outside the cap to comply with New Jersey's 2.5% cap law; the council approved the measure (7 yes, 1 no, 1 absent). The council held a first reading on an ordinance to exceed municipal appropriation limits and establish a cap bank (NJSA 40:4-45.14); that first reading passed (5 yes, 3 no, 1 absent) and the second reading was set for Sept. 16.
After an executive session on pending litigation, the council voted to approve a settlement in the matter Marcus Fuller v. City of Paterson; the resolution passed by roll call (6 yes, 1 no, 2 absent). Council members said the settlement related to a pending claim that required confidential handling before public action.
Several agenda items were moved to the council's regular meeting for fuller review, including an Urban Enterprise Zone (UEZ) five-year master plan; council members requested additional documentation and outreach evidence before a final vote.
What happens next: introduction of a municipal budget is a procedural step that does not immediately take effect. Council members, the administration and state reviewers (DCA) said they would continue negotiations to reduce the increase ahead of final adoption.
