Hanover Select Board Considers Enterprise Fund for Transfer Station
Town weighs $260-$300 sticker fee as officials grapple with financial constraints
HANOVER, MA - October 7 - The Hanover Select Board is considering moving the town's transfer station to an enterprise fund model, potentially requiring residents to pay between $260 and $300 for stickers. This proposal comes as the town faces significant budget constraints for fiscal year 2026, with looming cuts to public safety, the Public Works, and other town services.
Town Manager Joe Colangelo presented the enterprise fund option as a way to address the $1.6 million cost of operating the transfer station. The move would take this expense out of the general budget, potentially freeing up funds for other services.
"If we don't get creative, absent all of this, even if we don't get creative generally with a realistic way of reducing the waste that we produce, then I think we're going to lose the service anyways," said Select Board Chair Vanessa O'Connor.
She added “But this intermediate step buys us some breathing room, lets us revisit it, lets us address those things, and keeps the service that people want. Privatization, I've heard screamed in all directions that a lot of people don't want it, at least the longer tenured Hanover residents.”
The proposed sticker fee has raised concerns among board members and residents about affordability and the future of waste management in Hanover.
"If we price it too high, we're not going, meaning if private collectors are less expensive than what the sticker price is gonna be, no one will opt for the sticker price," said resident Kathy Hassey.
Board member Rhonda Nyman suggested a pilot program to gauge demand before fully committing to the enterprise fund model. "Could we do a pilot program and see really what the need is, and how much revenue and what we can charge for stickers and who wants them?" Nyman asked.
Colangelo cautioned that even with the transfer station removed from the general budget, the town still faces a challenging financial situation. He projected that department budgets would need to be reduced by $850,000 if the transfer station remains in the general fund, or increased by only $450,000 if moved to an enterprise fund.
To soften the blow on essential services, Colangelo proposed using all of the meals tax revenue for the FY26 operating budget and potentially tapping into the town's $7.5 million Other Post-Employment Benefits (OPEB) trust fund.
"I'm gonna suggest as a way to soften the blow on some of those items listed above, to use all of the meals tax in FY26 towards the operating budget, not just half of it," Colangelo said.
O'Connor emphasized the importance of community input on budget priorities. She proposed sending out a town-wide survey to gauge residents' preferences on which services to maintain in a base budget scenario.
"I think residents should weigh in on what the services are that they prioritize and want to see that remain in town when we're looking at a base budget scenario," O'Connor said.
The Select Board is expected to receive a preliminary budget presentation on Nov. 4, with further discussions and potential decisions on the transfer station and other budget matters to follow.
The town is also exploring the creation of a multifamily overlay district, which could impact future development and potentially jeopardize state funding if not implemented. The planning board is currently discussing the proposal, with a Special Town Meeting scheduled for Dec. 9 to consider the zoning change among other articles.
In other business, the board discussed the Route 139 traffic preliminary designs from MassDOT. A public information meeting is scheduled for Nov. 14 at 6 p.m., to be held virtually.
Colangelo urged the board and the Route 139 committee to identify a preferred alternative shortly after the public meeting to keep the project moving forward.
"I think the quicker after November 4th that the Select Board can identify a preferred alternative, the quicker that the project will actually come to fruition," Colangelo said.