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:
“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)
Monday, March 20, 2023 (Zoom)
Monday, March 27, 2023 (Zoom)
For more information on how to join the Zoom budget workshops, click here.