Hanover Approves 1.15 Split Tax Rate for FY2025

Town Faces Tough Budget Decisions Amid Potential Override

HANOVER, MA - November 18 - The Hanover Select Board voted Monday night to set a 1.15 split tax rate for fiscal year 2025, increasing the commercial tax burden in an effort to address budget shortfalls while balancing the needs of residents and businesses.

The board approved the new rate after a lengthy discussion and public comments from both business owners and residents. The 1.15 split means commercial properties will pay a higher tax rate than residential properties.

"I would like to recommend that the Board considers a split rate close to 1.3 this year and have a plan to get us to 1.6 or 1.75 in the next three years," said Rachel Hughes, a School Committee Member and former Advisory Committee Member who presented data on tax rates in comparable communities.

However, business owners expressed concerns about the impact of a higher rate. Frank Giglio, owner of Merchants Row, warned, "You're basically saying is, don't come to our town, don't develop, oh, I'm sorry, we have a little bit of traffic. These are the services that everybody in this town needs."

The board ultimately settled on the 1.15 rate as a compromise, an increase over the current split of 1.04 and above the Assessors recommendation of 1.06. The vote was 3-1 with Select Board member Rhonda Nyman voting against.

The tax rate decision comes as Hanover officials grapple with potential budget cuts and consider asking voters to approve an override to increase property taxes beyond the limits of Proposition 2½.

Town Manager Joseph Colangelo presented preliminary budget scenarios for fiscal year 2026, including a potential override option. The override scenario would provide level services for most town departments and increase funding for Hanover Public Schools.

"This scenario also shows about double the level services fund budget in Hanover Public Schools," Colangelo explained. "That number that they gave me two weeks ago was 1.8 million for level services to the current year, not to 24, to the current year. So this roughly doubles that in an effort to move them certainly as close as possible to FY24."

The potential override has sparked debate about funding priorities. School Committee member Libby Corbo questioned the proposed $3.5 million increase for schools in the override scenario, stating, "Level services, obviously, I don't think there's anyone in this room who thinks that level services is something that's a sustainable goal or should be a goal of funding."

Public safety officials also voiced concerns about potential cuts. Police Union President Andrew Braun said, "I'm here to tell you as an insider looking out if there's any further cuts to public safety, it's going to leave the people of this town in unsafe position."

Fire Captain Dana Allen echoed these concerns, stating, "We are headed in a backward direction. Our ability to deliver service has a direct correlation of the number of staff we have available."

The Select Board is seeking resident input on budget priorities. Chair Vanessa O'Connor proposed conducting a townwide survey, saying, "We really need to evaluate at their core what services the town provides that are the priorities so that we can effectively consider what we want to put out there as a number or what we don't want to put out there as a number for an override scenario."

Colangelo emphasized the need for a sustainable long-term plan, stating, "I would not and would refuse to give you any sort of formal proposal on an override until [Budget Director James] Hoyes and I can really do our best to show what is sustainable over five, seven, ten years out in the future."

The board will continue budget discussions in the coming weeks, with a goal of finalizing direction by Dec. 31. A more complete budget presentation is expected on Jan. 6.

In other business, the board approved an updated mission statement and timeline for the Transportation Study Committee, which will examine options for the town's transfer station and potential private curbside pickup.

The board also discussed an upcoming Massachusetts Department of Transportation public meeting on Dec. 5 regarding proposed changes to the town center roadway configuration.