Hoboken is beginning its budget process with a warning to residents that city taxes could rise as much as 20%.

Mayor Emily Jabbour said much of the $17 million budget gap stems from rising costs in insurance, infrastructure debt and contracts, including public safety. She said the city’s surplus has been drained in recent years.

The budget is far from final, but Jabbour said a 20% municipal tax increase is on the table.

“That’s not actually what we think we’re going to end up with in terms of a solution, but I want to be clear with people what that equates to,” she said.

Municipal taxes make up one part of the overall property tax bill. School and county taxes could also increase.

Officials said the 20% hike would amount to about $700 for the average assessed property value.

Councilman Paul Presinzano said about two‑thirds of Hoboken residents are renters. But a large tax increase is a cost that could be passed along to tenants and will also be paid by businesses.

“There are probably landlords who are going to pass that on and create this town to become more unaffordable than it is already,” Presinzano said.

Jabbour said she and council members have identified more than $700,000 in expenses they want to cut, including outside consultants and discontinuing print newsletters. Determining where to raise revenue may be more contentious.

“Obviously, parking is one of the biggest revenue sources for the city of Hoboken,” Jabbour said. “We have to look at those fees and see if we’re really covering the costs associated with any number of our services.”

Presinzano warned that higher parking fees or expanded camera‑based enforcement could strain local businesses.

Residents can weigh in at public budget hearings or the online survey expected next week.