Hanover Weighs Transfer Station's Future Amid Budget Crunch

Town officials consider enterprise fund model or privatization as financial pressures mount

HANOVER, MA - September 23 - The Hanover Select Board is grappling with the future of the town's transfer station as part of broader efforts to address looming budget constraints. At a recent meeting, officials discussed potentially moving the transfer station to an enterprise fund model or privatizing the service entirely.

Town Manager Joe Colangelo presented preliminary budget figures for fiscal year 2026, highlighting a projected $1.5 million increase in fixed town-wide expenditures against only $670,000 in new revenue. This leaves a significant gap that needs to be addressed.

"We are in an era of financial crisis and difficult choices," Colangelo said. "In my opinion, this [enterprise fund] will probably be more palatable to the board and to the public compared to the alternative."

The transfer station, which costs approximately $1.6 million annually to operate, has become a focal point in budget discussions. Colangelo plans to present an initial FY2026 budget on Nov. 4 that does not include funding for the transfer station within the operating budget.

Select Board Chair Vanessa O'Connor emphasized that the transfer station discussion is separate from any potential override vote. "Whatever the outcome of moving the transfer station into an enterprise fund is, there will not be funding for the transfer station included in the base operating budget for 2026," she said.

Board member Greg Satterwhite advocated for eliminating the transfer station entirely, citing potential cost savings and the opportunity to focus resources on core services like education and public safety.

"I think we need to get away from these things that hold us back from moving forward into a budget that makes sense for our town," Satterwhite said.

However, other board members and residents expressed concerns about losing the transfer station service. Board member Rhonda Nyman cautioned against using the transfer station as a scapegoat for budget issues.

"I wouldn't be opposed to charging if we had to charge for a sticker, if that's gonna help bring revenues into the town," Nyman said. "I'm all for that. I just didn't wanna see the transfer station shut down."

The board voted to reconstitute the Transfer Station Study Committee, which will evaluate the enterprise fund proposal and explore options if the town ultimately discontinues the service. The committee is expected to present recommendations before a special town meeting scheduled for Dec. 9.

Resident Christine Lyons suggested exploring additional revenue options, such as opening the transfer station to neighboring towns for a fee. "Any way that we can generate fees, especially when I looked at some of the fees that we've been generating, $73,000 for something, if we open that up to other towns for those types of services, maybe have them pay for the fees to use our transfer station and maybe keep it a reduced rate for us," she said.

The transfer station debate is part of a larger discussion on Hanover's fiscal challenges. Colangelo presented a list of potential "levers" to address the budget shortfall, including considering an override, using more meals tax revenue for the operating budget, and potentially tapping into the town's OPEB trust funds or stabilization fund.

As the town grapples with these financial pressures, officials are emphasizing the need for creative solutions and community input. The Select Board is considering sending out a survey to residents to gauge priorities for town services in the event of significant budget cuts.

The special town meeting on Dec. 9 is expected to include discussions on the transfer station funding, MBTA Communities zoning reconsideration, and updates to the South Shore Tech Regional School agreement. The meeting is scheduled for 7 p.m. at Hanover High School Auditorium.