Officials Pledge Commitment to Enhancing Quality of Life While Maintaining Tax Stability
Mayor John Labrosse and the City Council have announced the adoption of Hackensack’s new municipal budget for the fiscal year 2024. Guided by the mission of improving the quality of life for Hackensack residents, the new budget ensures the enhancement of services with only a modest increase to taxes – only the second municipal tax rate increase in the last nine years.
“Hackensack’s 2024 budget reflects a thoughtful balance between fiscal responsibility and community investment,” said Hackensack Mayor John Labrosse. “Our commitment to the residents of Hackensack is unwavering, and this budget ensures we can continue to enhance our services and infrastructure without placing additional financial burdens on our community.”
Residents are reminded that the tax bills recently sent out are only estimated bills for the third quarter. Third and fourth quarter tax bills are always adjusted to compensate for the differences in the 2024 first and second quarter bills, which were based on the prior year’s tax bill. To obtain the 2024 estimated annual tax bill, one must take the assessed value of their property and multiply it by the 2024 estimated rate of .0305 (Multiplying the third quarter estimated bill by 4 will NOT give you the 2024 total tax bill – it will produce a higher number). The actual annual tax bill will also be provided on the 4th quarter tax bill.
The projected 2024 municipal tax rate is still 17% lower than what it was in 2015.
Despite a 5% increase in overall spending, amounting to an approximate $6 million rise, Hackensack has managed to balance the budget effectively. The majority of the 2024 budget’s increase is due to health benefits and insurance, which saw a substantial rise of approximately $7 million. This is largely attributed to deferred medical claims from the pandemic period, inflation, and rising post-pandemic medical costs.
Hackensack, which operates on a self-insured model, is not subject to the state-determined costs and premiums like the majority of New Jersey municipalities that participate in the State health benefits plan. Instead the city pays individual claims, providing flexibility but also presenting unique financial challenges. To address these challenges, Hackensack has taken several proactive steps to manage and reduce costs including:
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Marketing new cost-saving plans to all employees
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Switching prescription providers
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Partnering with an analytics firm to screen claims and secure rebates from pharmaceutical companies
Additionally, salaries and wages have been stabilized, and aggressive monitoring of overtime has been implemented. While certain positions remain open, there have been no reductions in public safety staff.
While the new tax rate will see a modest increase to 1.375 (compared to 1.3 last year), increases in budget spending will be offset by several revenue enhancements such as:
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PILOT revenue increase of approximately $2 million, now at $6.5 million in annual revenue
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Local revenue increase of approximately $1.6 million
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State aid increased by approximately $250,000
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Revenue from note sales and realized capital grants of approximately $1 million
Looking ahead, Hackensack is also committed to exploring further cost-saving measures and enhancing the efficiency of its healthcare provisions. Some of the planned actions the city intends to take include:
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Investigating new providers
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Considering a Medicare Advantage Plan for all Medicare retirees
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Creating a new plan for pre-Medicare retirees
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Contracting with a private company to screen all out-of-network claims for compliance
“As new developments bring in PILOT revenue, the city can continue to provide tax relief while improving infrastructure, thereby perpetuating a cycle of growth and prosperity,” added Deputy Mayor Kathy Canestrino. “Our main goals include maintaining long-term tax stability, providing funding for community improvements, and implementing a robust redevelopment plan to drive non-tax revenue and subsequent tax relief.”
