From increased overtime to a steep decline in city revenue, the coronavirus is adding millions of dollars to Hoboken’s existing budget deficit.

After fee-based revenue started drying up and overtime expenses rose, the city scrapped its drafted budget, which was already tackling a budget deficit worth up to $15 million. Now, officials are considering every possible option, from delaying projects until next year to laying off employees, said operations director and acting business administrator Jason Freeman.

Councilwoman Tiffanie Fisher, who co-chairs the City Council’s finance subcommittee, said the lost revenue from parking, construction permits and court fees alone could add up to $3 to $5 million to the deficit.

“I honestly don’t know what we’re going to do,” she said. “It’s incredibly troubling.”

Parking revenue is down 75%, Freeman said. Meanwhile, the city is also facing new overtime expenses for police and firefighters for responding to the outbreak. The city also made extra purchases to enable employees to work from home, he said.

These shortfalls and expenditures will add to a budget deficit estimated to be between $7 and $15 million. City Hall was already evaluating the potential for layoffs and tax hikes before the economy was teetering into a recession.

“I think everything is on the table in terms of trying to get us into a stable balanced budget position,” Freeman said.

In hopes of saving on insurance expenses, Mayor Ravi Bhalla’s administration has been negotiating with the city workers’ six unions to try and switch to a new health insurance provider.

A month ago, the city sent notices of potential layoff to 79 employees who then filled a City Council meeting, expressing how critical they are to the city and how important their jobs are to them.

But that was before coronavirus started wreaking havoc on the local and national economy.

“I think you’re seeing private companies that are in a much better financial situation than Hoboken laying people off,” Freeman said.

The new state of the national economy and unemployment rates make city layoffs and tax hikes even harder to face, Fisher added.

The budget was previously set for an April 1 introduction, but a new state law allows for deadline extensions for budget introduction and passage.

“Every month this drags on it becomes more and more difficult, but we’re going to do the most responsible thing we can for the taxpayer while also realizing there’s a national pandemic going on right now,” Freeman said.