Sharp exchanges over board appointment and finances dominate Paterson meeting
PATERSON, N.J. – A special meeting of the Paterson City Council on March 25 moved briskly through routine approvals but was marked by a tense dispute over a board appointment and a detailed discussion of the city’s finances, including a $70 million borrowing measure to stabilize cash flow.
The virtual session opened with six members present and three absent, quickly advancing into resolutions ranging from redevelopment studies to public works purchases. While several items passed unanimously with little resistance, a prolonged debate over a rent leveling board appointment exposed divisions over process, transparency, and legal standards.
Redevelopment study raises preservation concerns
The council unanimously approved a resolution to hire a consultant for a feasibility study on the historic Ivanhoe Wheelhouse building near the Great Falls.
Officials described the study as exploratory. “This is a feasibility study… to see what the potential future uses of this building could be, how it could be restored,” an administrator told the council.
Councilman Luis Velez emphasized the need to protect the site, referencing prior discussions. “We cannot give our landmarks and historic landmarks to anybody out there. We want to conserve it,” he said.
Key Points
- Council approved a $70M borrowing plan to address timing gaps in city revenue
- Heated debate erupted over a rent leveling board appointment and resignation validity
- Multiple infrastructure and redevelopment measures passed with broad support
Dispute erupts over rent leveling board appointment
The most contentious exchange centered on a resolution to appoint Cheryl Lynn Hajes to the rent leveling board, following what Councilman Velez described as a public resignation by a previous appointee.
Velez argued the resignation was clear and immediate. “I am resigning as your commissioner on the rent leveling board… I cannot in no good conscious serve,” he said, quoting the individual’s public statement.
However, Corporation Counsel cautioned that legal confirmation of a vacancy was still pending. “We reached out to the rent leveling board… so that the things that we sign off on are legally competent and the council and the city are protected,” the attorney said.
Councilwoman Ruby Cotton strongly objected, citing lack of documentation. “How you vote on no paperwork in front of us?… I can’t support something that I know is not right,” she said, voting no.
Councilwoman Maritza Davila initially abstained, citing “mixed feelings,” but later changed her vote to yes after colleagues emphasized the council was voting only on the appointment, not the resignation.
Other members dismissed the procedural concerns. Councilman Shahin Khalique said, “What I see in front of me… is just a resolution… I have got nothing to do with who resigning.”
The measure ultimately passed 6–1, with two absent.
Public works and infrastructure approvals
The council approved the purchase of a sanitation vehicle and traffic safety materials, including new stop signs and solar-powered signals in multiple wards.
Council members used the opportunity to press for timely delivery and safety improvements. “Since streets were repaved people are driving like highways… immediate action would be greatly appreciated,” one member said regarding delayed stop sign installations.
$70M borrowing plan explained as “math problem”
The most significant financial item involved approval of up to $70 million in tax anticipation notes to address uneven cash flow tied to delayed state aid.
City officials stressed the borrowing was temporary and necessary. “This is an exercise to ensure that we meet our payroll obligations… and it just stabilizes our cash flow situation,” the business administrator said.
He explained that while the city maintains a balanced annual budget, revenue arrives later in the year, while major expenses—such as a $30.5 million pension payment—are due earlier.
Councilman Velez underscored that the move was not long-term debt. “We are taking a loan against our tax revenue… when that tax revenue comes in, we’re going to pay it off,” he said.
Officials also noted the city has not used such borrowing since 2018, framing the move as a response to delayed state aid, including $7.2 million still outstanding.
Closing remarks and public portion
No members of the public spoke during the meeting. Before adjournment, council members offered condolences following the death of longtime Passaic County Community College President Dr. Steven Rose.
“There will never be another Dr. Steven Rose,” Council President Lilisa Mimms said.
The meeting concluded after all agenda items passed, with most votes unanimous aside from the contested board appointment.