Hoboken City Council Narrowly Passes $150.3 million Budget with 4.5% Municipal Tax Increase

August 21, 2025

HOBOKEN — The Hoboken City Council on Wednesday narrowly approved a revised municipal budget of $150,267,179.02, accompanied by a 4.5% increase in municipal property taxes, following intense scrutiny and sharp debate among council members. The motion passed on a 5–3 vote. 

Key Financial Shifts & Tax Adjustments

Initially, in May, the council had introduced a preliminary budget featuring a 6.9% tax hike. Since then, through strategic amendments, the municipal tax increase was reduced to 4.5% — thanks to roughly $1.58 million in expenditure cuts. 

Revenues for the new budget are projected to come from a mix of sources:

$71.3 million anticipated from taxes $12 million in surplus funds $8 million expected from parking utility revenues $2.5 million attributed to the water utility Nearly $3 million in PILOT (Payments In Lieu Of Taxes) $180,000 from cannabis-related revenue 

Strategic Spending Cuts

To accommodate the tax reduction, officials introduced targeted cuts across multiple departments:

City Clerk’s Office: trimmed by $30,000 Corporation Counsel: cut by $125,000 Insurance costs: reduced by $265,000 Additional reductions were made in housing, zoning, redevelopment, and public safety divisions 

Capital Investments Remain on Track

Despite budget constraints, Hoboken’s ambitions for infrastructure and resilience remain strong, embodied in its six-year, $333 million capital plan, which includes:

$79.6 million for Maritime Park $22.9 million for water main replacements $40 million to rehabilitate the Midtown Garage $21 million earmarked for expanding Southwest Park 

Councilman Phil Cohen emphasized the public value of these investments, referencing successes like the Northwest Resiliency Park, which mitigated flooding from tidal surges. 

Council Reactions

Councilwoman-at-Large Emily Jabbour stressed that the initial 7% tax proposal was negotiated down to 4.5%, which, when combined with education and county budgets, means the net impact on residents may be closer to 2%. 

In contrast, 1st Ward Councilman Paul Presinzano criticized the notion that tax increases were inevitable, accusing colleagues of blind adherence to mayoral budgets. He directly challenged Jabbour, saying, “Councilwoman Jabbour, maybe you just basically said if you’re elected mayor, you’re gonna raise the taxes… For eight years you sat up here and followed the mayor’s budget through.” 

Voting Outcome

The final budget was approved by a 5–3 vote. Supporters included Council President Jim Doyle, Council Members Fisher, Cohen, Quintero, and Jabbour. Dissenters were Presinzano, Russo, and 4th Ward Councilman Ruben Ramos. 

Notably, the budget remains under the 2% state levy cap, providing a buffer of more than $81,000. 

Looking Ahead

Hoboken’s passage of this revised budget signals a cautious balance: preserving critical infrastructure and services while offering modest relief to taxpayers. With the city still grappling with debt and rising fixed costs, future budget cycles may demand further discipline or renewed revenue strategies to sustain long-term goals.