Hoboken Budget Proposed: $132M With Small Tax Increase

HOBOKEN, NJ — The administration of Mayor Ravi Bhalla will present its proposed $131.97 million municipal budget on Wednesday to the Hoboken City Council.

The budget, down from the $147.77 million proposed last year, requires 68 million from the taxpayers, more than the $64.8 million required last year. If passed as is, the average owner of $525,000 in property would pay a tax increase of $144 a year.

"The balanced budget overcomes significant fixed-cost increases created by rising inflation o
and union contract settlements and prepares for the city’s future through critical infrastructure improvements and personnel investments," said a release from the city.

Councilman Michael DeFusco, who has criticized Bhalla in the past, said the budget was in response to moves Bhalla made during his unopposed election bid in fall.

"Step 1: hire friends, inflate contracts, look the other way when inefficiencies are present, and right before your election, pass an unsustainable tax decrease," DeFusco wrote on Twitter Monday. "Step 2: once re-elected, introduce an inflated budget, despite nearly 30 million in federal funding due to Covid. Step 3 (forthcoming). Have an ally on City Council cut spending + call it a win-win, even though residents are still getting nailed with an unnecessary tax increase."

Population Has Grown

Bhalla said, “Hoboken has grown almost 20 percent over the past decade to 60,419 residents, and our services must grow simultaneously to support those residents, visitors, and business owners."

He added, "We are putting forward a responsible, balanced budget that provides the services our community deserves through investments in our frontline workers, our first responders, and our infrastructure."

A release said the proposed budget provides for crucial personnel investments with approximately $8 million in salary and wage increases through union contracts already adopted by the Hoboken City Council.

The budget includes a municipal tax increase of approximately 5.6 percent. The tax increase remains below the rate of inflation and below the increase of the Consumer Price Index, the city noted.

Property taxes are determined by the city budget (under consideration on Wednesday), along with the school and county budgets. The latter are both struck between March and June.

The release said, "As a way to offset the rising costs due to inflation and non-discretionary spending, the administration worked closely with the city’s Self-Insurance Fund Commission to reduce the cost of health insurance by over $3 million. Despite rising costs throughout the Ccountry, operating expenses in this budget have remained nearly flat in an effort to mitigate the impact on the Hoboken taxpayer."

The release listed capital improvements to come, including modernizing the Recreation Department, repaving 80 blocks of streets, and replacing old water mains.

The 2021 municipal budget represented a reduction of 2.8 percent in municipal taxes.

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