The city may have to shell out $10 million this year to cover leave-time retirement payments for police officers and firefighters — twice as much as what municipal officials originally expected to pay.
Paterson already was in the process of borrowing $5 million for the accrued leave time payments for 2019. But a surge in impending retirements has doubled the potential cost, officials revealed last week.
“It’s out of control,” said Councilman Flavio Rivera, chairman of the Finance Committee
The specter of an extra $5 million in retirement payments arises as city officials struggle to resolve their ongoing budget crisis. In an effort to avoid laying off firefighters and cops, Mayor Andre Sayegh is asking the City Council for permission to issue an extra $2.93 million in sewer bills to homeowners, businesses, nonprofit groups, county government, St. Joseph’s hospital and other entities.
Paterson’s finance director, Marge Cherone, alerted the City Council to the looming increase in retirement payouts during last Tuesday’s discussion of the sewer fee plan. Administration officials said they were looking for ways to cover the expense without borrowing the money.