Strategic Deal Saves Taxpayers Millions; Landmark Financing Covers Nearly 75% of Project Costs

The City Council announced today that the City has secured $9.2 million in “forgiven” funding to modernize aging drainage and sewer systems—money that never has to be repaid by local taxpayers.

The math for the City is simple: Hackensack is investing nearly $13 million in critical infrastructure repairs but only has to pay back about $3.5 million.

This massive savings was made possible through the New Jersey Infrastructure Bank (I-Bank), a state-run program that helps towns fund major repairs like roads and sewers. Unlike a traditional bank, the I-Bank can “forgive” huge portions of a loan—meaning the State pays that portion back instead of local residents. To make the deal even better, three-quarters of the remaining $3.5 million loan is completely interest-free.

“This is a massive financial win for every resident in Hackensack,” said Mayor Caseen Gaines. “We are fixing the ‘bones’ of our City—replacing old pipes and stopping floods—without sticking our taxpayers with the full bill. Our administration is committed to chasing every dollar we can to make Hackensack more resilient and affordable, and this $9.2 million savings is a direct result of those efforts.”

The project focused on the Anderson Street Drainage Area, specifically neighborhoods west of the railroad that have been hit hard by storms for decades. Because Hackensack is an older City, many streets still use a combined sewer system where rainwater and waste share the same pipes. As too many residents know, during heavy rains, this can cause backups into basements. This project was designed to end that cycle by separating those systems once and for all.

Key benefits of the project include:

• Massive New Capacity: Crews installed over 4,000 feet of new drainage culverts and 7,000 feet of new wastewater piping to handle even the heaviest downpours.
• Direct Neighborhood Relief: The work benefited the areas between Central Avenue and Passaic Street, specifically residents on Clay Street, Railroad Avenue, Berdan Place, James Street, and Berry Street.
• Extra Impact for Stanley Place: The project provides much-needed relief for Stanley Place, which has historically been hit particularly hard during rainstorms because it sits right at the edge of two major drainage areas.
• Reliability in Power Outages: The City installed a new emergency backup generator at the Kennedy Pump Station, ensuring that the sewer system keeps working even if the power goes out.
• A Cleaner River: The project diverts over 22 acres of rainwater directly to the Hackensack River through modern filtration units that clean the water before it enters the river.

“Our goal is to be the best possible stewards of the public’s money,” Deputy Mayor Agatha Toomey added. “Closing this deal today ensures that we are improving the quality of life in our neighborhoods—fewer puddles on the street and more reliable sewers underground—while simultaneously strengthening our City’s balance sheet.”

Since taking office on July 1, 2025, the Mayor and Council have prioritized a “Grant-First” strategy to protect both the environment and the City’s budget. This infrastructure victory joins a growing list of recent successes, including the use of a Green Acres grant to transform a vacant lot at 155 Main Street into a permanent downtown pocket park at no cost to local taxpayers.

In January, just six months after the current administration was sworn in, the City announced they had successfully captured $225,000 in environmental and tree-planting grants—accounting for over 85% of all such funding the City has received in the last five years.

This smart planning follows, when the city saved over $5 million by coordinating sewer repairs with the Main Street streetscape project. By combining the work into a single construction window, the City ensured they only had to dig once, avoiding the extra cost and resident frustration of tearing up the same street twice. Previous work in the Clay Street area also secured over $5.1 million in loan forgiveness.

With the financing officially closed these critical infrastructure projects, marking a major milestone for our community. To sustain this momentum, future planning will continue to leverage New Jersey Infrastructure Bank (I-Bank) funding. This strategic financial framework guarantees the continuous, timely delivery of the city’s capital projects.