Councilman Ruben Ramos Endorses Mike DeFusco for Mayor

Fourth Ward Councilman and former State Assemblyman Ruben Ramos is endorsing Mike DeFusco for Mayor along with the Team DeFusco Council slate in the November 7th city election. Ramos was elected decisively in 2015 and has partnered with DeFusco on numerous issues on the city council, from improving traffic conditions in the Southwest to pushing for better pedestrian safety on Newark Street and more.

“Mike DeFusco is the only candidate running for Mayor who truly understands what makes Hoboken so special -- the people who live here,” said Councilman Ramos. “Mike is a valued colleague of mine on the City Council and a tireless advocate for his constituents. As Mayor, I know he will fight hard for everyone. I'm proud to support Mike DeFusco and his entire team.”

DeFusco is running for Mayor along with Council candidates Michael Flett, Andrew Impastato and Vanessa Falco.

“I’m honored to be endorsed by Councilman Ramos, someone I consider not just a colleague but a true friend who shares my vision for a more progressive and inclusive future for our city,” said DeFusco. “Our campaign isn’t about old Hoboken or new Hoboken, but about bridging the political divides that have held our community back for far too long. I look forward to working hard to earn every vote in this election and I thank Ruben Ramos for his strong support for our campaign.”

$8.35 Million

Hard truths are never easy to accept, especially when they come with long term consequences. When we began this campaign together four months ago, we talked about the need for change and for new energy and ideas in City Hall. Now, we’ve learned that Hoboken has rung up a debt of over $8 million to Suez Water that seems to come as a surprise to the very people who were in a position to do something about it. Need for change has never been more urgent.

Some time in 2014, for reasons we are not yet aware of, Mayor Zimmer’s administration stopped paying Suez for repair work the company had done on our city’s aging water infrastructure. These repairs cost the city millions of dollars each year, yet somehow these figures were never included in the city’s municipal budgets or annual audits. Now, with the administration pushing for a new contract with Suez seven years before the current deal expires, the truth about this $8.35 million liability is coming to light.

We don’t know what the ultimate impact will be yet, but if the city has to pay these bills in one year it would cause a 15% tax increase, which would hurt every homeowner and renter in Hoboken. I will do everything I can to help us avoid this outcome.

This all happened at a time when two of my opponents in the race for Mayor, Ravi Bhalla and Jen Giattino, served as Council President and had seats on the Council Infrastructure Committee. Now they are pointing fingers, but the truth is that they have been Mayor Zimmer’s closest allies on the Council and have always been in a position to do something about this unbudgeted liability. Councilman Bhalla has since had to recuse himself from any of these discussions due to a potential conflict of interest stemming from his law firm’s business relationship with Suez.

Yesterday, I sent a letter to the State Department of Community Affairs requesting an official investigation into these issues to find out the extent of the damage done to our finances. Only an independent analysis will reveal how deep a hole we’re in and the costs that could be eventually passed on to taxpayers before it gets any worse.  

I'm running for mayor to bring new energy and new ideas to City Hall, but now it’s clear that we also need a fresh injection of transparency and sound fiscal judgement. As your mayor, I will work tirelessly to resolve any outstanding liability in an open and transparent manner while modernizing our aging infrastructure. Only an honest discussion will allow us to avoid repeating the mistakes of the past.

Now is the time for new leadership and a new direction for our city. I hope you will join me in making that a reality.

DEFUSCO CALLS FOR DCA INVESTIGATION INTO CITY’S UNBUDGETED $8.35 MILLION SUEZ LIABILITY, POTENTIAL FOR MASSIVE TAX INCREASE TO PAY OFF DEBT

Mayoral candidate and Councilman Mike DeFusco is calling for an independent investigation into the recent revelations that the City of Hoboken is carrying an $8.35 million liability to Suez Water for infrastructure repairs over the past three years, a sum that was not accounted for in any recent city budget, or listed on the city’s audit.  Speaking about the liability at last night's City Council meeting, the city's auditor claimed he just became aware of the sum “yesterday” while the City's Business Administrator, Steven Marks, first was alerted of the presence of the liability “a year ago” but claimed to have not realized the extent of the debt until “a few months ago.” The liability came to light due to the administration's push for a new long term contract with Suez, seven years before the current agreement is set to expire, and the questions raised by DeFusco and other members of the City Council.

“This unbudgeted, previously unknown liability is a shocking display of either incompetence or obfuscation by the Zimmer administration and its Council allies Ravi Bhalla, who is a member of the Subcommittee on Infrastructure and Council President Jen Giattino, who is also a member of that committee,” said DeFusco.  “It's difficult to believe that a publicly traded company would allow a liability to get so large over many years and not say anything to the debtor. This could amount to a 15% tax increase to pay off this unfunded liability, which would be a harmful outcome for our city.”

DeFusco has sent a letter (attached) to the State Department of Community Affairs, which oversees local governments, outlining the situation and requesting an official investigation.

At a previous meeting Councilman DeFusco revealed that Councilman Ravi Bhalla had a potential conflict of interest due to his work as a partner for a law firm that Bhalla has now admitted counts Suez as a client. The firm’s business dealings with Suez date back at least to 2014, which was the year Hoboken began negotiating the proposed new contract. Ravi Bhalla has since recused himself from Suez related discussions and votes.  

“As further details come to light, it is becoming more and more clear that the root of this mess was Mayor Zimmer’s intent to try and take this debt off the books through a hasty and ill-planned restructuring of the city’s contract with Suez so she could claim a tax cut for residents going into an election year,” said DeFusco. “It’s not yet clear exactly when Mayor Zimmer became aware of this mounting debt, but her decision, and the willingness of her Council allies, to try to sweep it under the rug rather than publicly acknowledge and address the problem flies in the face of open and responsible government. We need a full and impartial investigation into this matter to determine the extent of the damage that has been caused and the costs that will be eventually passed onto taxpayers thanks to the Zimmer administration's actions.”