HANOVER — February 2 and 12, 2026 — Town Manager Joe Colangelo and Budget Director Jim Hoyes submitted a fiscal year 2027 operating budget that aims to “stop kicking the can down the road” by converting short-term debt into long-term bonds and strategically drawing down excess levy capacity to moderate tax increases. The proposal, paired with a massive $27.5 million plan to address PFAS “forever chemicals” in the town’s water supply, sets a course for Hanover’s fiscal health through 2032 while targeting a steady 4.35% property tax increase for the average homeowner.
The Full Story
During a marathon session on February 2, Budget Director Jim Hoyes presented a “road map” for Hanover’s financial future, emphasizing a transition from interest-only payments to principal-plus-interest debt management. The town is currently benefiting from a AA2 bond rating, which was reaffirmed by Moody’s following a successful analyst call on February 4. This high credit standing allowed the town to secure competitive interest rates on a recent $7.5 million bond sale, resulting in $285,000 in “favorability”—premiums that were immediately used to pay off debts for a large area mower, a woodchipper, and police radios.
“We stopped kicking the can down the road on some of these debt items... everything will end up getting paid off quicker. Recognition for policies, the fact that we have the eye on the long term and we’re demonstrating fiscal discipline was a plus.” — Jim Hoyes, Budget Director
The proposed FY2027 budget of roughly $61.7 million incorporates a disciplined drawdown of the $1.8 million in excess levy capacity created by last year’s override. By using $910,000 of that capacity in the coming year, officials believe they can keep property tax increases at approximately $450 for the average single-family home—a significant reduction from the 6.7% increase seen in 2025.
A looming challenge remains the Water Enterprise Fund. The town is preparing for a three-phase, $27.5 million PFAS remediation project across all three water treatment plants. While current water rates are projected to rise by only 3.5% in FY2027 through the use of retained earnings, Hoyes warned that debt from the PFAS project could lead to total rate increases of 33% to 35% over the next four years.
Why It Matters
For the average Hanover resident, this meeting signals a shift toward predictable tax bills. By spreading the use of “excess” tax capacity over three years, the town is avoiding a “tax cliff” while funding critical infrastructure. However, the cost of clean water remains a major future expense; the $27.5 million PFAS project is a necessary but expensive mandate that will eventually be reflected in quarterly water bills.
Official Minutes & Data
Key Motions & Votes (February 12, 2026)
Motion: To approve the results of the $7,545,000 general obligation bond sale to Fidelity Capital Markets at a price of $8,257,695.58.
Vote: 4-0 (Member Rachel Hughes recused) (17:25)
Motion: To approve the sale of $850,000 in bond anticipation notes (BAN) to Piper Sandler & Co. at an interest rate of 3.5%.
Outcome: Passed Unanimously
Key Motions & Votes (February 2, 2026)
Motion: To accept the Town Manager’s FY2027 Operating Budget submission.
Outcome: Budget submitted for review by the Advisory Committee.
Motion: To extend the certified useful life of the town’s ambulance from 5 years to 12 years to facilitate a 10-year debt note.
Outcome: Passed (1:37:45)
Public Comment
Greg Satterwhite (speaking as a resident) addressed “vile” and “disrespectful” social media comments directed at town officials. He challenged residents to engage directly with the public budget process rather than relying on “uncensored” Facebook groups, asserting, “Yes, we can do math.”
What’s Next
The Advisory Committee will begin detailed department-level budget reviews throughout February and March. A final presentation on the PFAS remediation project costs is scheduled for the Select Board’s February 23 meeting. The Annual Town Meeting is set for May 4, 2026, where residents will cast the final vote on these financial plans.
Source Video: Hanover Select Board Meeting (VOD) - February 12, 2026; February 2, 2026