Hanover Select Board Approves $3.76 Million Override for May Ballot
Board seeks balance between affordability and sustainability as town faces multi-year budget deficits
HANOVER - March 17 - The Hanover Select Board votes to place a $3.76 million override question on the May 17 ballot, creating excess levy capacity to address projected budget deficits. The decision came after extensive discussion during Monday's meeting about balancing affordability for residents with the town's long-term financial sustainability.
The override amount includes $250,000 in excess levy capacity beyond what's needed for the fiscal year 2026 budget. This additional capacity aims to help address projected annual deficits ranging from $1.6 million to $2.2 million over the next five years.
"Getting an override to pass is my number one concern," says Board Chair Vanessa O'Connor. "The balance in getting an override to pass is affordability versus sustainability."
The board's decision represents a compromise between competing priorities. While financial projections indicate the town needs between $1.5 million and $2.2 million annually to reach fiscal year 2032 without service cuts, board members express concern that requesting the full amount would make the override unaffordable for residents.
"I think increasing the levy limit on the ballot question for the full amount required to make this as sustainable as it realistically can be is just not possible," O'Connor says. "It's not practical. It's essentially killing the override in my view."
Town Manager Joe Colangelo supports the board's decision to include excess capacity in the override amount.
"I think it would be insanely foolish for the town to pass an override budget, and if it also passes at the ballot, for those two numbers to match," Colangelo says. "If we're trying to make it sustainable and tell the voters and be real with them that if you pass this, we are trying to get this to 2032, we need to have that excess levy."
The Advisory Committee has already reduced the town manager's proposed override budget by $500,000 to create additional excess levy capacity. This reduction includes $300,000 from schools and $200,000 from municipal departments.
Finance Director Jim Hoyes explains that the town faces significant financial challenges, with expenses projected to grow at 4.7% to 5.1% annually while revenues increase at only 2.7%.
"We're going to have operating budget deficits until fiscal year 32, unless there's some structural changes and significant cuts in expenses," Hoyes says. "The current run rates supporting level services lead to deficits."
These deficits are largely driven by shared town-wide expenses like health care and Plymouth County retirement contributions, which are growing at about 8% annually. Personnel costs, which make up about 90% of department budgets, are another significant factor.
"Without an override at all, we've run out of room of things to cut from the budget to live within a 2.5% levy," says board member Greg Satterwhite. "I think fiscal year 27, we would be looking at serious cuts to a lot of programs. It's going to be a lot of people. It's not scare tactics. That's actually what's going to happen."
The town hasn't had an override since 1997, and voters rejected one last May. The current proposal is 42% less than last year's failed override attempt.
Board member Steve Louko expresses concern about asking for too much.
"I'd be nervous about creating too much in addition to what they created with lowering the town manager's budget," Louko says. "I feel like if you go any higher than 3.6 [million], you kill the whole deal."
The board ultimately votes 4-1 to approve the $3.76 million override question, with Satterwhite casting the dissenting vote.
If approved by voters, the override would not immediately raise property taxes by the full amount. The Advisory Committee recommends using $1.3 million in free cash to offset the property tax impact in fiscal year 2026, effectively phasing in the override's full impact.
In other business, the board:
- Tabled a decision on proposed cemetery fee increases until April 7, requesting more information on actual costs. The fees haven't been raised in 23 years.
- Approved changes to the Annual Town Meeting warrant, including amending a 2015 appropriation for the Cedar School roof to allow funds to be used for Middle School roof repairs.
- Approved a Special Town Meeting warrant that includes $220,000 from free cash to cover snow and ice budget overruns.
- Heard that the town's windmill removal is scheduled to begin the following day.
The board also notes that four community budget forums are planned for April ahead of Town Meeting, and public meetings about municipal aggregation are scheduled for the next Select Board meeting and the following week at the Council on Aging.
The Select Board concludes its open session before entering executive session to discuss legal strategy related to Curaleaf litigation.