Hanover Unveils FY27 Budget Strategy
Excess levy capacity maintained to smooth property tax increases following last year's override
HANOVER, MA - January 5, 2026 - The Hanover Select Board received its first formal look at the Fiscal Year 2027 operating budget on Monday, outlining a financial strategy designed to smooth property tax increases from the override over the next three years. Town Manager Joe Colangelo and Budget Director Jim Hoyes presented a plan that utilizes excess levy capacity to cap tax hikes at approximately 4.5%—or roughly $457 for the average single-family home—rather than the maximum allowable increase of over 6%.
The Full Story
Town officials described the FY2027 budget proposal as the “end of the beginning,” marking a shift toward long-term sustainability following the recent Proposition 2 ½ override. The proposed plan prioritizes a controlled drawdown of excess levy capacity to avoid sharp spikes in tax bills.
Strategic Use of Excess Levy Capacity Budget Director Jim Hoyes explained that while the town has approximately $1.8 million in excess levy capacity, utilizing it all at once would result in a 6.4% tax increase. Instead, the administration recommends spreading this capacity over fiscal years 2027, 2028, and 2029.
“This provides a nice runway for us to level tax increases,” Hoyes said. “We could have a relatively flat year-over-year 4.5%... tax increase.”.
Under this model, the projected tax impact for the average single-family home in FY27 would be $457, compared to $650 if the full capacity were used. Hoyes noted that by Fiscal Year 2030, excluded debt obligations will drop off, potentially lowering tax increases to less than 1%.
Departmental Shifts & Staffing The budget adheres to strict growth caps: 2.25% for municipal departments and 2.75% for Hanover Public Schools. Despite these constraints, the plan includes targeted staffing increases, including:
Water Treatment: A new full-time employee to handle increased testing requirements, particularly for PFAS.
Town Clerk/Treasurer: Converting a part-time Assistant Town Clerk to full-time to support the Treasurer/Collector’s office.
Council on Aging: Adding a 0.5 FTE administrative assistant and funding a cook position using state earmarks.
Transfer Station Stays Open 4 Days The Transfer Station enterprise fund faces a budget gap, but the Town Manager recommended maintaining the current four-day operating schedule rather than reverting to three days.
“It’s just really been customer request and demand,” Hoyes explained regarding the schedule.
To balance the books, officials are eyeing a permit fee increase capped at 3.5%, which would amount to less than $12 annually for residents.
Innovative Proposal for Organic Fertilizer In a notable policy discussion, Vice Chair Greg Satterwhite proposed shifting the town’s athletic fields from synthetic to organic fertilizers. He suggested funding this transition through the Water Enterprise budget rather than the general fund, arguing that eliminating synthetic chemicals directly protects the town’s water supply from PFAS and carcinogens.
“Some of the chemicals that are in those products actually have known PFAS forever chemicals in them... I think that a case could be made that that would make sense to move those items from the general DPW budget to the water enterprise budget.” — Vice Chair Greg Satterwhite
Town Manager Colangelo estimated the transition to organic pesticides would cost an additional $80,000 annually due to the need for more frequent applications.
Why It Matters
For Hanover homeowners, this budget sets the financial temperature for the next three years. The strategy of “smoothing” the tax rate aims to prevent the sticker shock of a 6%+ increase, but it locks in a steady ~4.5% hike through 2029. Additionally, the proposal to link organic field maintenance to water rates represents a creative—but potentially debatable—use of enterprise funds to solve environmental and budgetary challenges simultaneously.
Official Minutes & Data
Key Motions & Votes
Motion: Approval of draft meeting minutes of November 3rd, December 1st, and December 8th, 2025.
Vote: Unanimous Voice Vote
Motion: To adjourn the meeting.
Vote: Unanimous Voice Vote
Discussion Highlights
Plymouth County Retirement Association: The Board discussed sending a letter to the Retirement Association regarding assessments. Select Board Member Rachel Hughes noted that other towns, including East Bridgewater, are coordinating similar actions to address rising costs.
Regionalization: Board Member Vanessa O’Connor suggested exploring regionalization for the Town Planner position, noting the shared commercial corridor along Route 53 with neighboring towns.
Cemetery Fees: Vice Chair Satterwhite requested a review of cemetery plot pricing, noting that research on the topic was completed over the summer.
What’s Next
February 3, 2026: Formal submission of the Town Manager’s Budget.
February 20, 2026: School Administration will present their detailed budget.
Draft Letter: The Town Manager will refine the letter to the Plymouth County Retirement Association for approval at the next meeting.
Smart fiscal strategy on the excess levy capacity drawdown. Spreading the override impact over 3 years to cap increases at 4.5% instead of maxing out at 6.4% is textbook municipal budgeting done right. The 2030 excluded debt drop-off creating sub-1% growth is the real payoff here, assuming no new levies hit before then. What I found clever was Satterwhite's pitch to fund organic field maintenance through the water enterprise budget by framing pesticide reduction as PFAS mitigation. That's one way to shift GF cost pressures off-balance sheet, though it does raise questions about wheather enterprise funds should subsidize non-core operational upgrades.