Hillsborough committee introduces $40.1 million 2025 municipal budget; public hearing set for May 27

Acting Chief Financial Officer Joe Manzo presented the Hillsborough Township Committee with the introduced 2025 municipal budget on April 22, saying the proposed operating plan totals about $40.1 million and that a public hearing and final adoption are scheduled for May 27.

Manzo told the committee the coming year began with roughly $2.25 million in revenue and mandatory-cost reductions relative to last year, including the end of a $339,000 municipal relief aid stream and higher required payments for pensions ($377,000), joint insurance fund assessments ($83,000) and health insurance ($345,000). He said the budget introduced to the committee remains within the state—s municipal spending cap but relies partly on assessed-value growth to limit the tax-rate impact.

Manzo said the introduced levy is a 2.47% increase over 2024—s levy but that because town-wide assessed values rose, the tax-rate effect is an increase of 0.8 cents. For an average residential assessed value of about $550,000, he estimated the municipal portion of the tax bill would rise by about $44 annually under the introduced budget. He explained how assessed-value growth reduces rate pressure compared with a static base.

The committee also considered and approved two budget-related municipal measures: an emergency temporary appropriations resolution to ensure bills are paid until final adoption, and a cost-of-living adjustment (COLA) ordinance introduced to allow a statutory 1% add-on to the standard spending-cap calculation if needed. Manzo described the Division of Local Government Services (Department of Community Affairs) review process and said the state will perform a local exam of the budget this cycle.

Committee members and the mayor thanked Manzo for a plain-language walk-through of major revenue and expense drivers. Committeewoman Hand and Deputy Mayor Payne and others discussed amendment rules: Manzo summarized thresholds that would require a separate advertised amendment and additional hearing (for example, a >10% change to a line-item appropriation or a >5% increase to the amount to be raised by taxes).

Votes at a glance

- Emergency temporary appropriations (resolution to fund operations pending adoption): approved (roll-call: yes 5, no 0). Notes: allows township to meet obligations before budget adoption.

- Introduction of 2025 municipal budget and setting public hearing/adoption for May 27, 2025: approved (roll-call: yes 5, no 0). Notes: introduced budget will be reviewed by Division of Local Government Services; adoption scheduled for May 27, 2025, subject to any required amendments.

- Consent agenda (items 1–9, including several personnel hires and the road paving contract): approved (roll-call: yes 5, no 0). See separate article on road paving.

What the presentation covered and why it matters

Manzo outlined the structural challenge facing the budget: the expiration of one-time state aid and statutory increases in pension and insurance assessments that municipalities cannot control. He walked the public through the two cap rules that govern New Jersey municipal budgets (the spending cap and the tax-levy cap), described what categories are largely outside local discretion (statutory obligations, pension and debt service, contractual salary/benefit commitments) and identified the smaller pool of appropriations that represent the committee—s discretionary choices.

He also explained the practical effect of rising total assessed value in Hillsborough: because the tax point (the dollar value of one cent of tax rate) grows with assessed value, the same appropriation increase produces a smaller rate change when total assessed value is higher.

Next steps and public input

The committee set a public hearing and adoption date of May 27, 2025. Manzo said the state review may request amendments; the committee may also amend the budget by resolution before adoption. He described the limited circumstances that trigger a separately advertised amendment and second public hearing (for example, a new appropriation exceeding statutory thresholds or a large percentage change in key lines).

Residents with questions were invited to submit inquiries to Township Clerk Sarah Brake (sbreak@hillsboroughnj.gov) for written responses and to attend the May 27 public hearing. Manzo and the clerk said staff will answer emailed questions submitted between introduction and adoption.

Ending

Committee members praised the clarity of the presentation, encouraged public review of the materials posted by the township, and reiterated that final adoption remains subject to the state—s review and any committee-directed amendments.