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City finance staff explains tax-rate rise, commercial valuation drop and plans to resume twice-weekly trash pickup
Summary
Finance staff described why Hackensack’s 2025 tax bill will rise, noted declining commercial property valuations over four years and said the city can resume twice-weekly garbage collection as soon as Aug. 1 with minimal budget impact.
A city finance staff member told the Hackensack City Committee of the Whole that the certified 2025 tax rate will raise the average homeowner’s total tax bill by about $491.41, or roughly 5 percent, compared with 2024.
“Now in Hackensack, the average home is assessed at $321,205,” the staff member said. Using last year’s assessment, the speaker summarized components of the 2024 bill and then reported updated 2025 figures: “So that same home in 2025 is gonna have a total tax bill of $10,307.44, k, which is an increase of $491.41 or 5%.”
The staff member said the increase is driven in part by falling commercial property valuations, which push up the municipal tax rate even when the municipal levy itself rose only modestly. “The municipal levy was up 3 quarters of a percent, but yet the municipal tax bill is up 2.4%,” the presenter said, explaining that lower commercial valuations require the rate to rise to raise the same revenue. The speaker reported that total commercial valuations and the number of commercial properties have dropped for four consecutive years and said the city needs to “take a long, hard look at what's happening.”
A discrepancy between press reporting and the county certification also drew questions. The staff member said newspaper reports stated the county levy rose 4.5 percent, but the county’s certified number showed a 9.9 percent increase; the staff member said they would further investigate whether the difference stems from a county budget amendment or changes in equalization.
On timing, the staff member reminded the committee that tax bills must be mailed by June under the statute cited in the meeting and that the city issues estimated third-quarter bills when county numbers are not yet available. “So in September, what we'll do is we'll send out fourth quarter adjusted bills. It'll be an adjustment to make up for the difference from the third quarter,” the staff member said.
The speaker also outlined why twice-weekly summer garbage pickup was suspended during the COVID-19 pandemic and explained the city’s efforts to restore service. The staff member said a depleted fleet and long parts lead times made resuming the service earlier impractical, but that recent truck repairs, one delivered vehicle and another expected soon have improved capacity. The presenter said the city could resume twice-weekly collection on Aug. 1 and that doing so would require hiring a couple of part-time workers but would have “no budget impact or a very, very minimal budget impact.”
Council members asked follow-up questions about commercial properties converting to residential uses, tax-abatement pilot programs and how pilot agreements affect the tax roll. The staff member said pilot arrangements move properties from commercial (4A) classification to tax-exempt (15F) status while they are under the pilot, and that pilot properties can reduce the taxable base.
No formal votes were recorded in the transcript on these matters; council members requested follow-up information and a deeper review of valuation trends at a future finance-committee meeting.
