HANOVER — Voters will consider a $40.8 million municipal operating budget, up 2.9% over this year’s spending plan, at Town Meeting in May.
The Selectboard unanimously approved the proposed budget, as well as a $2.4 million bond to purchase a new fire engine tower truck, at a Monday meeting.
The board members also recommended a host of other warrant articles, including money for design work and engineering for a paved multi-use path on Reservoir Road paid for with reserve funds, and establishing social districts and joining the clean energy loan program, C-PACER.
The budget includes a proposed general fund of $24.58 million, a 3.8% increase over this year’s. The remainder of the budget includes fire, parking, water, sewer and ambulance funds.
The bulk of the operating budget, $15.7 million, would go toward wages and benefits for town employees. The proposal includes a $322,600 increase in salaries and wages and $95,500 for retirement contributions.
The operating budget also includes a $46,700 increase for utility costs and a $335,000 increase for “all other operating costs.”
About a quarter of the general fund would pay for the Department of Public Works, at $8.75 million. The Department has about 35 employees.
Selectboard member Jennie Chamberlain noted Monday that two appropriations totaling $334,000 for Advance Transit in the parking fund did not include any adjustment for inflation. She questioned whether it should be increased due to rising oil prices as a result of the war in Iran.
Town Manager Rob Houseman, who is also on the AT Board of Directors, said AT sets their budget requests in the fall and has “locked their diesel rate in already,” so it should be relatively insulated from price fluctuations.
AT operates nine bus routes with stops in Hanover, including the Dartmouth-Hanover Downtown Shuttle that runs between the college, downtown Hanover and various college parking lots.
In total, $18.03 million is projected to be raised by taxes in the fiscal year starting July 1 to cover portions of the general fund, fire fund and parking fund.
As a result, the municipal tax rate is expected to go up by 3.1% to $3.40 per $1,000 of assessed valuation, plus an additional amount depending on which Hanover fire district a home is in.
The base increase would leave homeowners on the hook for $1,360 in municipal taxes on a $400,000 home.
The Hanover Finance Committee has not yet put together a position statement on the budget because the group was waiting for the Selectboard to make a final recommendation, Committee Chairman Greg Snyder said Monday. But, “I don’t have anything that is a critical problem to bring to your attention,” Snyder said.
The budget includes using $300,000 of unassigned funds to buy down the tax rate, Hanover Finance Director Ellen Bullion told the Selectboard. The board also opted to move $1 million of unassigned funds into a capital improvement fund for roads, right of ways and bridges and $250,000 into the capital facilities fund.
Both are expected to be drawn on for projects “in the not-too-distant future,” Houseman said in a recording of the March 16 meeting.
With all of the allocations, Hanover will still have about $3.1 million, or about 15.56% of total expenses, in its undesignated fund balance. The balance, which can be used to cover unexpected costs between tax bills or make up for revenue shortfalls, should be between 10% and 15% per town policy.
Along with the budget, Hanover voters will consider a $2.4 million bond to purchase a new fire engine tower truck at Town Meeting. The Selectboard unanimously approved putting the bond on the Town Meeting warrant after about 15 minutes of discussion Monday night.
The town’s current tower truck is nearing the end of its usable life, Houseman said. The current ladder truck purchased in 2005 will reach the end of its life in 2030, Houseman said. Because it will take three years to build a truck, the town needs to approve the purchase now.
The Hanover Fire Department ladder truck has been used twice in the last three years and is already showing signs of deterioration, Houseman said. About a year and a half ago it was offline for six months because of a hydraulic issue.
Hanover is required to have a ladder truck or tower truck — which also features a long boom to reach higher heights with an attached water cannon, but the cannon can be operated remotely unlike a ladder truck — because it has taller buildings such as Dartmouth College dormitories, according to standards set by the National Fire Protection Association and town insurance.
In March, Hanover voters approved a $16.96 million elementary school operating budget, a $33.71 million Dresden School District operating budget and a new collective bargaining agreement for school district service staff.
Hanover Town Meeting will be held on Tuesday, May 12. Ballot voting for officers and zoning changes will be from 7 a.m. to 7 p.m. at the Hanover High School gymnasium at 41 Lebanon St. The business meeting is scheduled for 7 p.m. at the same location.
