Hanover: CPA Surcharge Change, Market Basket Liquor License Turned Down At Town Meeting

by | Jun 30, 2020 | News

In Hanover, the Special and Annual Town Meeting was held at the U Sports Complex. Discussion focused on the operating budget, CPA funding, and liquor licenses.

A lot of the early discussion focused around reducing the Community Preservation Act surcharge from 3 percent to 1.2 percent. This was brought forward by the Selectmen as an option to reduce the tax burden on residents. The article was voted down.  

“It’s the considered belief of the CPC that Article 7 is a real bad idea for Hanover,” said CPC member Bill Scarpelli. “It will actually cost the town a significant stream of revenue that really needs to be banked for future necessary capital projects.”

Scarpelli said a reduction would have provided taxpayers with $32 each quarter in tax relief, but the town would lose out on $1.7 million over the two years of the proposed reduction.

“There is a significant proposed project on the horizon that requires substantial CPA funds, and that project is the Sylvester School renovation,” said Scarpelli. “Now, make no mistake, to have any chance of getting that project off the ground and viable, the town cannot pass up and essentially forfeit $1.7 million.”

Caleb Estabrooks felt reducing the surcharge could lead to the town missing out on opportunities, such as open space or future projects.

“It’s a lot of projects that we would have had to pay for otherwise. The Town Hall needed renovation, it had to happen. We were able to use CPC funds to pay for it instead of having to dig out of other budgets,” said Estabrooks. “There will continue to be other projects like that, where we can use this to enhance our town and to do the work that needs to be done, instead of kicking the can down the road.”

Residents approved a $64.23 million operating budget for FY 21. The current level of services are maintained, but Town Manager Joe Colangelo said more than 14 capital projects were removed from the original budget.

Ted Hickey, the Chair of the Advisory Committee, said that $1.5 million was used from free cash to balance the budget.

“The town’s current free cash position is very strong, we’re fortunate. We’re at $4.3 million, which is 6.7 percent of the budget. This represents the highest level of free cash we’ve had since at least 2003, so it’s a bit of an anomaly,” said Hickey. “Under our recommended budget, 36 percent of the town’s free cash balance would be used towards the operating budget – the highest amount proportionately since the last economic downturn, when an average of 68 percent of free cash was used to balance the 2010 through 2013 budgets.”

The average increase to residential property tax bills is up 1.96 percent. The budget avoids cuts in personnel.

“We were able to recall all the positions that we either furloughed or were part of the layoffs a couple of weeks ago,” said Dr. Thomas Raab, an Assistant School Superintendent. “There’s only a few positions left that are really long-term sub positions that change from year to year that we need to evaluate on an annual basis.”

Further discussion focused on a liquor license for the Market Basket at Hanover Crossing, which was not approved.

Suhas Patel, the owner of Vintage Wine & Spirits, was concerned with the impact on family-owned stores.

“All of the current liquor store owners and beer and wine store operators have paid a high price for their licenses to operate their business in this great town,” said Patel. “By approving another full liquor license to Market Basket, especially at no cost, will diminish our business value. Market Basket will do just fine without a liquor license.”

Each resident who spoke was in opposition of the license.

“We gave 14 residential liquor licenses to Hanover Crossing. Please, don’t give any more to Hanover Crossing,” said Dan Pallotta. “I am super psyched that we’re getting Market Basket. Everywhere I go in the state, I find a Market Basket. You guys are going to love it. It’s not the end of the world to go down the street and pick up a six-pack.”

The Hanover Special and Annual Town Meeting concluded in one night.

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