City of Hoboken introduces FY2023 budget

The Bhalla Administration will present its municipal budget on Wednesday, March 15, to the Hoboken City Council for introduction. The proposed budget provides for critical infrastructure investments, Vision Zero safety upgrades, and quality-of-life improvements while maintaining a balanced budget despite rising inflation rates and increases in non-discretionary costs.

The proposed 2023 budget allocates millions in investments in upgrading Hoboken’s infrastructure, including:  

• Proactive replacements of 7,650 linear feet of aging water mains in 2023 with millions annually in capital improvements to upgrade the entire water main system  
• The installation of 15 new water pressure sensors to monitor Hoboken’s drinking water system
• Inserting 260 new leak detection sensors into the water main system to proactively repair water mains before they break
• Final acquisition of Union Dry Dock and the public planning process for Maritime Park
• Capital construction costs to build out the 5-acre Northwest Resiliency Park, begin construction on the expanded Southwest Resiliency Park, continue planning for the buildout of a new park at 800 Madison Street, and other flood resiliency projects
• Installing 10 new electric vehicle charging stations, including fast chargers, to meet the growing demand for electric vehicle infrastructure  
• Constructing Vision Zero safety upgrades through the Vision Zero Action Plan to continue to mitigate roadway motorist, pedestrian, and cyclist conflicts
• Two new social workers to focus on expanding the City’s social services
• Additional staffing in the Division of Housing to continue to support those most in need of housing  
• Expansion of the City’s recreation programs and online access to registration and scheduling

“The proposed 2023 budget will allow us to continue to transform our City for the better through critical investments that provide for not just the residents of today but the residents of tomorrow,” said Mayor Ravi S. Bhalla. “This responsible budget prioritizes major investments in infrastructure upgrades through millions annually in water main replacements, flood resiliency projects, Vision Zero safety improvements, and much more. My Administration looks forward to working with the City Council to finalize this budget in the coming weeks.”

The $135 million budget includes a municipal tax increase of approximately 7 percent, which equates to an estimated $13 a month for a property owner with an average assessed property of $526,800. Hoboken has the lowest municipal tax on the average residential assessment in Hudson County. Over the past decade, Hoboken’s average assessed tax has increased only 1.13 percent annually, which remains significantly below the average inflation rate over the same span. In 2022, the City adopted a final budget with a minor increase of 2.5 percent, which was also far below the rate of inflation for the previous year.  

The proposed budget will also expand the City’s surplus to affirm the City’s continued AA+ credit rating.

The proposed budget overcomes significant fixed cost increases, including over $1 million increases in State pension costs, a nearly $2 million increase in healthcare costs, over $1 million in contract obligations, an annual inflation rate of ~6.5 percent, and high interest rates. At the same time, the Administration has reduced costs in a number of discretionary spending areas by bringing many services in-house rather than hiring third-party contractors. Investments in both the Engineering Department and Legal Department have been made to reduce outside costs and save taxpayer money.  

Once the budget is introduced, a copy will be made available on the City’s website at www.hobokennj.gov/resources/government-finances.

The Administration will host nine budget workshops over three days via Zoom. The schedule for the workshops is as follows:

Thursday, March 16, 2023 (Zoom)

• Administration – 6:00 pm
• Corp Counsel – 6:40 pm
• City Clerk – 7:10 pm
• Community Development – 7:40 pm

Monday, March 20, 2023 (Zoom)

• Public Safety – 6:00 pm
• Health & Human Services – 7:00 pm

Monday, March 27, 2023 (Zoom)

• Transportation & Parking – 6:00 pm
• Environmental Services – 6:30 pm
• Water Utility – 7:15 pm

For more information on how to join the Zoom budget workshops, click here.