Hackensack introduces 2026 budget proposing roughly 10.2% tax-levy increase

Hackensack — The City Council on April 6 introduced the 2026 municipal budget, proposing a roughly 10.2% increase in the tax levy, City CFO Jim Mangan said during a special meeting. The council voted to authorize the budget’s introduction and to permit a title-only reading ahead of a fuller public presentation and a May 5 public hearing, pending state review.

Mangan told the council the budget process began late last year and moves through multiple drafts. He said total spending in the draft is up about $7.1 million, with approximately $6.1 million tied to employee health benefits and roughly $900,000 attributable to higher sewer processing charges from the Bergen County Utilities Authority. Mangan said changing how the city bills certain PILOT (payment in lieu of taxes) agreements will raise surplus in 2026 and anticipated revenue in 2027, but cannot be counted as anticipated revenue for the 2026 budget.

"It's a retooling," Mangan said, calling the plan "a sound budget" that adds oversight and addresses long-standing imbalances. Speaking candidly about past practice, he said, "we dropped the ball," and said the budget attempts to correct that by rebuilding reserves and stabilizing future years.

Why it matters: The tax-levy increase is larger than in recent years and, if adopted, will affect homeowners and businesses. Mangan and council members framed the introduction as the start of a multi-step review: council members will hear a detailed departmental presentation April 21, followed by a public hearing and a potential adoption vote May 5 after state approval.

Council members pressed Mangan on the role of PILOT agreements and property appeals in driving assessment changes. Mangan said some large commercial parcels that previously produced sizable tax bills have come off the tax rolls under PILOT arrangements or as a result of demolitions and appeals, which lowers overall assessments and can increase tax rates for remaining taxpayers.

Public reaction: During the agenda-only comment period residents warned of local effects. "If taxes increase 10%, you're going to see a lot of businesses closing," resident Erika Solis said, adding that rising costs have already pushed some local commercial rents up. Donna West urged residents and officials to avoid public shaming and to support young people after a recent youth incident, saying adults should "help our young people to do a better job." Daryl Watkins asked the public to wait for facts in the public reporting of that incident.

Votes at a glance: The council recorded unanimous roll-call votes on the measures needed to advance the budget. For each vote Deputy Mayor Toomey, Councilwoman Clark-Collins, Councilman Carroll, Councilman Diaz and Mayor Gaines voted in favor.

Next steps: Mangan will post the state budget document on the city website and said he will present a detailed departmental review at the council’s April 21 meeting. The council expects a May 5 public hearing and a subsequent adoption vote if state approval is granted.