Full Notification

As I prepare to introduce the final municipal budget of my tenure as Mayor, I want to speak to you candidly, not just as your Mayor, but as someone who also pays taxes in Hoboken. 

Over the past years, working with the City Council, we have made real progress to improve Hoboken. With the City Council’s approval, we have invested in modern infrastructure that has mitigated routine water main breaks, expanded our open space with new and improved parks throughout the city, invested heavily in public safety, and reimagined supportive social services for tenants and those neighbors who need a helping hand. Through it all, we have worked to deliver these improvements while keeping our municipal tax rate stable and responsible as well as among the lowest in Hudson County. In fact, over the last 15 years, since I was on the council, the municipal tax levy has gone up only 16%.  

Our success in budgeting has been recognized by third parties, such as S&P Global which provided Hoboken with a credit rating of AA+ for fiscally responsible budgeting. Indeed, we have come a long way since I first took office on the City Council when our credit rating was junk bond status, and we could not borrow for basic capital improvements.

At the same time, we are facing non-discretionary fiscal challenges like rising healthcare costs, approved union contract commitments, and debt service payments, as well as additional external challenges, like many cities across the state and country. Revenue sources we have relied on are now shrinking and less stable. Just this month, the Trump Administration informed us that they are attempting to claw back over $300,000 in COVID-19 relief funding allocated to our Fire Department. Trump funding cuts have also resulted in the cancellation of $250,000 in public health funding that supported critical local initiatives. The Trump Administration has also cancelled the FEMA Building Resilient Infrastructure and Communities program, potentially impacting millions of dollars for major projects like the Southwest Resiliency Park Expansion and Harborside Park, part of the NJDEP’s Rebuild by Design flood protection system for Hoboken. 

In times like these, cities are reminded why we build a rainy-day fund, and thankfully our responsible, long-term budgeting over the past several years has allowed us to accumulate a healthy surplus. To help offset some of our budgetary challenges and ensure we are not unduly burdening taxpayers, the municipal budget my administration will introduce will utilize this rainy-day fund to a higher degree than usual. Taking this into account, coupled with the unique revenue challenges we are facing this year, this year's proposed budget includes a 6.9% increase in the tax levy, which equates to approximately 50 cents per day for the owner of the average assessed property.  

I have already briefed the City Council’s Finance Subcommittee and the councilmembers running to serve as Hoboken’s next mayor, because I believe transparency and collaboration are essential to responsible governance.  

Despite the current challenges, our proposed budget continues to maintain one of the lowest tax rates in Hudson County and supports critical infrastructure plans while preserving quality of life. 

As we move forward, it is very important for residents to understand a fundamental component of how City budgets work: the Mayor proposes a budget, and the adoption – or final version of the budget – is in the hands of the City Council. The City Council can make changes as it deems appropriate and then adopt the final budget.  

The full budget, which will be presented for introduction at a special City Council meeting on Thursday, April 24, via Zoom at 7 p.m., can be found HERE, and I encourage you to review it and participate in the upcoming public workshops because your voice is vital to this process. 

Any adjustments are now the responsibility of the City Council. My office is, as always, available to support the City Council through the next step in the budget process. I am confident that through collaboration, we can continue to deliver good government and fiscal responsibility to Hoboken taxpayers. 

I look forward to continuing this conversation, seeing your involvement in the upcoming budget workshops and council meetings, and ultimately, reading the City Council’s final budget for our City. 

Very truly yours, 

Ravi S. Bhalla 
Mayor