Hoboken approves amendment to municipal budget that cuts property taxes by 2.8%

hoboken building clinton street

Hoboken property owners would see their municipal tax rates decrease under the latest version of the budget. (Reena Rose Sibayan | The Jersey Journal)

Oh, if only every year was an election year.

Whether it was coincidence or choice, Hoboken residents reaped the benefit Wednesday night when the Hoboken City Council approved an amendment to the 2021 municipal budget that slashed property taxes by 2.83%. In April, the city introduced a budget that kept taxes stable.

The cuts amount to about $1.7 million total and largely came from spending categories that had updated, reduced need estimates since the budget was first introduced, said finance committee chair Councilwoman Emily Jabbour.

The average homeowner will see a $74 reduction in their annual property taxes. The budget amendment passed unanimously at Wednesday’s City Council meeting.

“I’m really proud that we got to this point,” Jabbour said.

Mayor Ravi Bhalla is up for reelection in November. The three at-large city council seats, including Jabbour’s, are also on the ballot.

About $500,000 was reduced from tax appeals based on updated data from the last couple of months, and another $500,000 was cut because the end of New Jersey’s state of emergency meant an end to federal reimbursements for some COVID-19 costs, she said. Medical claims were also reduced by about $200,000, the councilwoman said.

While much of the amendment removed spending from throughout the budget, councilmembers were passionate about adding $250,000 for certain historic street repair projects.

That funding will go toward projects on Court Street and Castle Point Terrace, whose cobblestone and brick surfaces need renovations, councilmembers said.

“This is a continuation of a start that we made many years ago and that we can finish within the next couple,” said Councilman Mike DeFusco.

Many councilmembers contributed ideas toward the budget amendment, Jabbour said.

“There were lots of points of view that were reflected here in away that I think was very collaborative,” she said.

The councilwoman said she hopes to have the budget approved by the state for final passage by the council’s August meeting.

It includes $7 million in American Rescue Plan Act relief. Last year’s budget increased municipal taxes by 7.5%.

“After a year and a half of hardship, I’m glad to report that taxpayers will see a tax reduction in this year’s budget, providing much-needed relief while maintaining important city projects, including water main upgrades, funding for parks, and improvements to critical infrastructure,” Bhalla said in a statement.

“Even though we’ve faced substantial financial challenges during a global health pandemic, our collaboration with the City Council and assistance through the American Rescue Plan has allowed us to produce another balanced budget for the third year in a row.”

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