Hoboken Introduces $118M Budget With No Tax Increase

Hoboken NJ

08 April, 2021

6:22 PM

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HOBOKEN, NJ — Hoboken Mayor Ravi Bhalla and his administration announced on Wednesday that they have crafted a proposed budget without a municipal tax increase. Residents may still see an overall property tax increase this year depending on the final budgets for the county and schools, usually determined in late spring. The City Council voted 8-0 Wednesday to introduce the proposed $118.2 million budget, but they may suggest or make amendments, and it will come up for a final hearing and vote at a future meeting. The proposed Hoboken budget utilizes $7 million allocated to the city of Hoboken from the American Rescue Plan to cover costs and revenue loss caused by the pandemic. The city found out last month that it would get a total of $27 million from the plan. Some of that money will fund small business grants, a housing relief fund for struggling residents, and funds for non-profits, Bhalla said. Last year's final $117.8 million budget required city layoffs and included a small tax increase. Budget chatter The Bhalla administration's budget proposes using $1.8 million less in surplus for the budget in 2021 as compared to a year ago, said a city spokesman. The city said, "Despite substantial shortfalls caused by the COVID-19 pandemic, which includes $6.4 million in lost revenue from various sources, the balanced budget includes capital funding for quality of life projects, maintains and upgrades city services, and reduces discretionary spending." "We've been able to right size our finances and establish a budget with no increase in municipal taxes," said Bhalla. "This budget is a critical step in our continued recovery from the pandemic ... we're also ensuring that we continue to fund critical projects including the city's water main replacements, repaving roads and advancing Vision Zero improvements, upgrading City parks, acquiring additional open space, and much more." Bhalla is up for re-election in November. Sometime Bhalla critic Councilwoman Tiffanie Fisher, who voted to introduce the budget, said this week, "After Mayor Bhalla delivered the highest tax rate increase in a decade, having $7 million in tax relief from American Recoveries Act revenues is welcome. But we need to better understand what the mayor is calling 'rightsizing' costs with increases in the 5 percent range." Bhalla also thanked Sens. Robert Menendez and Cory Booker, and Rep. Albio Sires, for their part in the American Relief Fund. The city cited the following construction projects funded through the budget: Capital improvement projects included in the budget Repaving approximately 75 blocks of roads, including Vision Zero safety improvements, curb extensions, new crosswalks and bike lanes Continued construction on the Northwest Resiliency Park and flood infrastructure, which will mitigate localized rainfall flooding in Northwest HobokenUpgrading Hoboken's water infrastructure through phase two of the water main replacement project Park improvement projects and open space acquisition, including the expansion of the Southwest Resiliency Park, and rehabilitation of the waterfront walkway near 16th Street Upgrading environmental services equipment, including the purchase of one new electric garbage truck Repairs and upgrades to Municipal Garages B, D and G and Midtown Applications for small businesses, and struggling residents "I'm pleased to share that my administration will soon be opening up an application process for our small businesses, residents who are in need of rental relief, and our Hoboken non-profits hit hard during the pandemic," said Bhalla. "These grants will serve as an important lifeline to our community members who are doing everything possible to overcome the significant financial challenges of the past year." Additional criteria and an online guideline for the grant funding will be established by the City and released by June 15. Micro-transit, vaccines, and other programs In addition, the administration has proposed allocating stimulus funding for the following: Expanding mobility options, including an on-demand micro-transit service similar to "Via", which is currently utilized in Jersey City Additional funding for vaccination expansion, testing infrastructure, and other costs associated with mitigating the pandemic Investments in water infrastructure upgrades, including additional water main leak technology that will allow the City to see a crack in a main before it becomes a break "Financial recognition for qualifying municipal employees who have been on the front-lines of the pandemic" Reducing spending The city said that the budget "continues a trend during the Bhalla administration of reduced budgeting on outside legal counsel, which was reduced by $100,000 from last year, and $300,000 since 2017. The Office of the Mayor, Business Administrator, and City Clerk reduced spending by over $65,000 from a year ago, with staff in the Mayor's office having been downsized from two full-time, at-will employees to one in December of 2019." Losing revenues The city said it has lost $6.4 million in revenue due to COVID-10, including: Construction Code: $560,000HPU Transfer: $2.3 million Interest Income: $525,000 Parking Tax: $520,000 Hotel Tax: $365,000 Various Permits/Fees: $300,000 In addition, the city said, the city also saw a rise in fixed costs including: A $1.2 million increase in pension$1.4 million increase in healthcare coverage for employees (both statutory requirements and out of the city's controland an increase of $1.16 million for previously negotiated union contracts. ‍Don't miss Hoboken breaking news alerts when they are announced, or get a free daily morning newsletter with Hoboken news. Sign up with your preferences here. Got news? Email [email protected]. 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