$40.1M Budget With Tax Increase Approved In Hillsborough

HILLSBOROUGH, NJ — A $40.1 million municipal budget for 2025 was approved by the Township Committee at the Tuesday night meeting, which includes a 0.008 municipal tax rate increase.

Deputy Mayor Catherine Payne, Liaison to the Budget Committee, stated, "This budget represents a significant commitment to our community's future. By focusing on infrastructure and public safety, we are not only improving the daily lives of our residents but also laying the groundwork for a thriving and sustainable Hillsborough."

An average home assessed in 2024 at $550,000 will pay an increase of $44 per year for the municipal services portion of the tax bill.

"I am happy with the budget presented, with a less than 1 cent increase," said Committeeman Shawn Lipani.

The budget was approved by Republicans Payne, Lipani, Committeeman Robert Britting, and Mayor John Ciccarelli.

Democrat committeewoman Samantha Hand voted against the budget.

"We are currently in an unstable economic environment caused by uncertainty at the federal level, with a possible recession looming. As a result, Hillsborough Township has an obligation to do everything within its power to reduce the tax burden on our residents. This budget does not do that. We have a spending issue, we have a debt issue, and we are on a fiscal slippery slope," said Hand.

Hillsborough Township Acting Chief Financial Officer Joe Manzo previously presented this year's municipal budget at the April 22 Township Committee meeting.

The main pressures driving the tax increase had to do with a combination of revenue not being received in 2025 and increases.

Revenue not available in 2025:

• Municipal relief aid $339,211
• Liquor license sale - $483,258
• Property Sale - $626,010

Significant increases:

• Pensions - $377,386
• JIF(Joint Insurance Funds) - $83,488
• HIF(Health Insurance Funds) - $344,839

"Those six items together are two-and-a-quarter-million dollars. When the calendar year started on Jan. 1, we were already in the hole two and a quarter million dollars," said Manzo at the April meeting. "You are not alone if it makes you feel any better. Everybody in the state lost the municipal relief aid, everybody in the state saw an increase in their pension bill."

Manzo also broke down the largest areas of spending from the budget, including:

• Public Safety - 25 percent
• Public Works - 10 percent
• Insurance - 11 percent
• Pension and Social Security - 13 percent

Under the new budget, improvements will be made to police, roads, and DPW.

Those improvements include:

Public Safety: The 2025 budget allocates funds to upgrade and expand the Police Department facilities to accommodate the increase in personnel.

Road and Infrastructure Improvements: In 2025, Hillsborough will continue its $9 comprehensive road paving and preservation program on around 30 roads through repaving and road preservation.

Department of Public Works Facility Improvements: The Department of Public Works building is set to undergo a much-needed rehabilitation to enhance both functionality and efficiency. In addition to facility upgrades, the Township is investing in new equipment that will support uninterrupted maintenance and snow and tree removal operations that are critical to ensuring the safety, accessibility, and convenience of all residents year-round.

"While I support the police and essential township services such as DPW, I cannot in good conscious and with my commitment to the residents of Hillsborough to be fiscally responsible, support a budget that will take an additional $2.8 million out of taxpayer pockets," said Hand.

Before Lipani's vote, he shared why he was approving the budget.

"We have the lowest debt ratio of anybody in the county, at like .35 percent… we have a double A bond rating. What does that mean? That means the professionals who run the numbers say, Hillsborough, you are running it the right way," said Lipani. "So I can take the political rhetoric out of it and just tell you that there is work that needs to be done around, and we are doing that without taking a large tax burden on the public, and you will feel the benefits for the next 30 years."

In closing, Ciccarelli thanked the Finance Committee, Township departments, interim CFO Joe Monzo, and residents for their efforts in completing the budget.

"I look forward to seeing the projects and efforts to be delivered by the departments in 2025," said Ciccarelli. "Let’s get to work.”

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