LEBANON — Predictions that the coronavirus pandemic would handicap town and city budgets failed to materialize over the past year as Upper Valley residents continued to pay taxes, buy cars and register their dogs.
Officials in three Upper Valley communities — Lebanon, Hanover and Norwich — recently reported that revenues for the past year largely reflected those before the arrival of COVID-19.
Meanwhile, the few areas that were hit hard by stay-at-home orders, such as parking and airport fees, will likely be recouped via federal stimulus funds, they said.
“Many of us were really quite surprised that we did not see significant difficulties in people’s ability to pay their property taxes,” Hanover Town Manager Julia Griffin said Monday morning.
“We saw no drop-off at all in terms of where we typically are two weeks beyond when taxes are due,” she added.
Griffin was one of several Upper Valley managers who watched last spring as the region’s unemployment rates rose and wondered whether property owners would be able to pay their tax bills.
While Hanover had the lowest level of unemployment in the state — 2.9% — in mid-April 2020, businesses and property owners along Main Street struggled as shoppers stayed home and Dartmouth College transitioned to remote learning.
However, Griffin said, only about a dozen taxpayers were delinquent — the number town officials typically expect — and motor vehicle registrations were “strong.”
But the town’s parking system saw “profound” losses, Griffin said.
The $2.3-million-operation took in about half of its projected revenue, she said, adding that officials expect parking to rebound this year as vaccines are distributed and the summer tourist season returns.
In Lebanon, where the unemployment rate hit nearly 12% last year, more property tax revenue was collected in 2020 than the year prior, City Manager Shaun Mulholland told the City Council last week.
About 1.9% of all property taxes went uncollected last year, compared to 1.8% the year before, he said, adding that motor vehicle registrations also beat projections.
Mulholland said Lebanon’s budget was buoyed by development fees that the city charges for new residential and commercial buildings, which saw a “significant increase.”
Overall, Lebanon saw $33.5 million in general fund revenue, including property tax revenue, last year.
That’s $1.1 million more than the $32.4 million the city brought in last year.
But, Mulholland said, the city saw fewer dollars from recreation programs. Those were heavily cut back to prevent the spread of COVID-19, and the Veterans Memorial Pool was closed.
Lebanon Municipal Airport, which typically requires money from the city’s general fund to stay afloat, also saw fewer planes and fees, Mulholland said.
More than $2 million in federal aid will help recover the airport losses, though, making it revenue-neutral for the next two years, according to Mulholland.
And stimulus dollars will go to recouping the shortfall in recreation fees.
Norwich’s revenues remain “pretty much on track,” Miranda Bergmeier, the assistant to the town manager, said Monday.
Hartford Town Manager Tracy Yarlott-Davis said Monday that she would need more time to provide information on the town’s revenue situation.
The municipal officials said they’re expecting revenues to rebound — and possibly beat past performances — in the coming years as the country recovers from the economic fallout of the pandemic.
For instance, employment levels have improved in both Vermont and New Hampshire.
“Obviously, the economy seems to be on a rebound, on the way up,” Mulholland said.
That means the city’s employees could see a cost-of-living raise next year instead of the layoffs that Mulholland worried would come last year.
Tim Camerato can be reached at tcamerato@vnews.com or 603-727-3223.
