Hanover Considers $960 Tax Increase for Average Homeowner
Town grapples with finance department staffing shortages amid budget discussions
HANOVER - December 16 - Hanover's Select Board is weighing a potential override budget scenario that could increase the average residential tax bill by $960 in fiscal year 2026. The board discussed this option alongside a base budget scenario that would result in a $270 increase during their recent meeting.
Town Manager Joe Colangelo presented updated budget projections, stating, "If that was the one that we went live with starting July 1st, the increase to the average bill would be about $270. Under the override scenario that's shown here tonight, the increase would be about $960."
The override budget includes a $3.5 million allocation for schools, which Colangelo described as "more of a Joe number than a school number." He explained that this figure doesn't tie directly to any number provided by the school committee or administration.
Board members expressed interest in meeting with the School Committee to better understand their budget needs. Board Chair Vanessa O'Connor emphasized the importance of resident support for the override, stating, "I do absolutely think that it's critical that the town and residents come out and support a budget that will take away our reliance on free cash."
The base budget scenario includes $900,000 in free cash to balance revenues with expenditures. Jim Hoyes, assisting with financial matters, explained the town's free cash projections, noting, "We would end the year ideally with $1 million or $1.1 million of free cash flowing into fiscal year 27."
Amid these budget discussions, the town is facing significant staffing challenges in its finance department. Colangelo reported the departure of both the finance director and treasurer-collector.
"We are right now reorganizing our treasurer collector's office," Colangelo said. "We had some departures in that office a few weeks ago. We have an existing employee that was actually working in our planning department who has a strong background in accounting and finance. We've moved into the deputy collector treasurer role."
The town has posted the treasurer-collector position and plans to hire for the town accountant position after the new year. In the interim, Colangelo stated, "We have a contracted town accountant that's coming in now, two to three days a week. Her name is Artie. She has 30 years of experience as a municipal finance director."
Board member Rhonda Nyman expressed concern about the staffing situation, asking, "Do we need help, you know? Do we look at maybe asking folks from the state, maybe DLS, things like that. Maybe they can come down and help in the interim?"
Colangelo assured the board that the town is managing the situation, with assistance from various sources including neighboring towns. He emphasized that hiring for these crucial positions is a priority.
The board also discussed the annual allocation of deferred compensation for the town manager, approving $19,000 as per Colangelo's contract. This decision was based on a recent performance evaluation where Colangelo received a rating of "exceeding expectations."
In other business, the board acknowledged the Department of Revenue's certified tax rates for fiscal year 2025, with a residential rate of $12.35 and a commercial, industrial, and personal property rate of $14.60.
The Select Board plans to continue budget discussions in January, including a joint meeting with the school committee to address education funding needs. A community budget forum, originally scheduled for December, has been moved to mid-January to provide more concrete information to the public.