Mayor Announces Lay Offs

After the refinancing of, the city is now left with a budget gap, Mayor Dawn Zimmer announced on Thursday afternoon, and the city will have to start the lay off process.

Earlier the mayor announced that the lay offs could result in a 10 percent cut across the board.

"I deeply regret that this action must be taken, but unfortunately the City Council minority's blocking of these essential bond ordinances leaves me no choice," Zimmer said.

During Wednesday's meeting, the members of the council minority didn't believe that lay offs would follow if the ordinance failed.

Now, the mayor said, the city is responsible for a $4.5 million payment, which has to come out of the city's budget.

The bond on the midtown garage will be switched to a taxable bond—because it will be in use by a private entity after the sale of Hoboken's hospital—which is what the ordinance on Wednesday would have done.

The mayor has asked every city director to submit a plan to the city next week, according to spokesman Juan Melli. It's unclear how many people will have to be laid off, Melli said, but it will have to happen "as soon as possible."