HANOVER - December 15, 2025 - Facing tightening budgets and rising fixed costs, the Hanover Select Board confronted Plymouth County Treasurer Thomas O’Brien Monday night, urging the County Retirement Association to extend its pension funding schedule to provide relief to struggling municipalities. While O’Brien touted the fund’s strong investment performance and projected full funding by 2031, Town officials argued that sticking to this aggressive timeline is exacerbating a local “fiscal crisis,” forcing cuts to services and personnel across the South Shore.
The Full Story
The central drama of Monday’s meeting revolved not around local bylaws, but around the complex mechanics of the Plymouth County Retirement Association (PCRA), which manages pensions for 52 member units, including Hanover.
County Treasurer Thomas O’Brien and PCRA Executive Director Lauren Durham appeared before the Board to present an update on the system’s health. O’Brien highlighted the fund’s success, noting it has grown from approximately $550 million in 2006 to $1.725 billion today. He reported that the system is on track to be fully funded by fiscal year 2031.
However, that 2031 deadline has come at a steep cost to member towns, which have seen their annual assessments rise significantly—roughly 7.5% annually.
The Push for Relief Select Board member Vanessa O’Connor challenged O’Brien’s reluctance to extend the funding schedule further out, noting that Hanover is not alone in its distress. She cited similar concerns raised by East Bridgewater, Rockland, Norwell, Whitman, and Middleborough.
“In my view, just the sheer number of communities that we are finding that are struggling to retain services, to retain personnel... I think our problem is that we view this as a financial crisis,” O’Connor told O’Brien. “That’s why we’re asking for help.”
The Board argued that extending the schedule to 2035 or 2040—essentially refinancing the mortgage—would lower annual payments, allowing towns to weather the current economic storm of inflation and Proposition 2½ constraints.
The Treasurer’s Defense O’Brien pushed back, warning that “kicking the can down the road” is expensive and could hurt bond ratings. He emphasized the need to keep the 2031 date as a buffer against future market crashes.
“I am not as confident as others about the long-term fiscal stability of our financial marketplace,” O’Brien said. He argued that the Board needs to “keep our powder dry” and only extend the schedule in the event of a major recession or drastic actuarial changes, not just to ease budgetary pressure.
Town Manager Joe Colangelo disputed the Treasurer’s framing, urging the County to be a better partner. “I do think Plymouth County needs to step up to the plate... There could be different payment schedules that provide a significant relief valve and could be a pretty big part of town’s budget solutions.”
Colangelo and Select Board member Rachel Hughes pressed O’Brien to at least provide the data on what the assessments would look like if the schedule were extended to 2034 or 2035.
O’Brien conceded to run those numbers during the association’s valuation process in March and April 2026, though he warned that his five-member board might still vote against an extension.
“If we were to extend the funding schedule now and a crisis were to hit, you’ve lost that leverage. You’ve lost that flexibility... It also costs a lot more to kick the can down the road.” — Thomas O’Brien, Plymouth County Treasurer
Strict Spending Caps & Tax Relief “Lockbox” Adopted In a unanimous vote, the Board adopted Policy 7-20: Post Override Financial Plan, a sweeping new framework designed to prevent the need for future operating overrides. Budget Director Jim Hoyes outlined the policy’s three “guardrails” for fiscal sustainability:
Spending Caps: Annual budget increases will now be capped at 3% for the School Department and 2.5% for Municipal Departments. This “run-rate” limit forces departments to live within Proposition 2½ constraints.
Excess Levy Strategy: The Town will not spend all the “excess levy capacity” (taxing authority) generated by the 2025 override immediately. Instead, these funds will be smoothed out over 3–5 years to prevent sudden spikes in tax bills.
Meals Tax Revenue: Receipts from the local meals tax will no longer fund daily operations. Instead, they are strictly allocated: 60% to Capital Projects, 20% to the Stabilization Fund, and 20% to OPEB (retiree healthcare liabilities).
“This framework ensures that the revenue we have is used strategically, not just consumed by operating costs,” said Town Manager Joe Colangelo. More information is available on the Town’s website.
Room Renovations & Road Work Town Manager Colangelo announced that the Select Board hearing room will soon undergo renovations, including a new table layout to improve sightlines between board members and the audience. Additionally, the West Hanover Square intersection project is 97% complete, with final punch-list items wrapping up this week.
Why It Matters
For Hanover taxpayers, the pension debate is a direct line to their property tax bills and town services. The Town’s required payment to the county pension system is a fixed cost that eats into the operating budget. If the schedule remains at 2031, the Town must continue absorbing high annual increases, which leaves less money for schools, police, fire, and roads—or necessitates overrides. If the County extends the schedule, it could free up immediate cash flow for the Town, though it would almost certainly cost more in interest over the long term. Locally, the new Financial Policy (7-20) acts as a safety valve. By capping department increases at 2.5–3% and diverting meals tax revenue into savings and capital accounts, the Board is attempting to break the cycle of “fiscal cliff” budgeting that leads to frequent override requests.
Official Minutes & Data
Key Motions & Votes
Motion: To approve the renewal of all alcoholic beverage licenses (on-premise restaurant) as listed under agenda item 5.
Outcome: Passed
Vote: Unanimous (Aye)
(Note: The Board voted sequentially to approve various categories of license renewals, including Package Stores, Common Victuallers, Auto Dealers, and Entertainment Licenses. All passed unanimously.)
Motion: To adopt the updated financial policies (Policy 7-20), establishing spending caps and revenue allocation rules.
Outcome: Passed
Vote: Unanimous (Aye)
Motion: To adjourn.
Outcome: Passed
Vote: Unanimous (Aye)
What’s Next
Pension Data: Treasurer O’Brien agreed to analyze the cost impact of extending the funding schedule to a later date (e.g., 2034/2035) during the valuation period in March/April 2026.
Budget Season: Town Manager Colangelo and Budget Director Hoyes will present the nearly complete FY27 budget at the first meeting in January 2026.
Menorah Lighting: Scheduled for Wednesday evening at 5:30 PM at the Sylvester School.
Regional Collaboration: The Board discussed potentially coordinating a formal letter or meeting with other South Shore Select Boards to collectively lobby the County Retirement Board for schedule relief.