HADLEY — Splitting the tax rate so there is more burden on commercial property owners, encouraging more commercial and residential development and passing a Proposition 2½ tax-cap override are some of the ideas for confronting what is likely to be a significant deficit in the town’s fiscal year 2027 budget.
In advance of the first presentation of next year’s spending plan on Wednesday, Feb. 4, the Select Board and Finance Committee last week held the first “Finance Night and Listening Session,” with a second scheduled for Feb. 11 at 6 p.m. at the Senior Center, collecting suggestions for how to avert anticipated personnel and program cuts.
For resident Dylan Barstow-Manz, town officials need to consider the income side, with another attempt to pass an override being the most immediate solution. But Barstow-Manz said more development and enhancing the sewer infrastructure on Route 9 is necessary to achieve greater density, even if it means housing that might accommodate local college students.
“So the next solution is a growth mandate,” Barstow-Manz said. “Putting a stop to development is the opposite of a solution, in my opinion.”
Former Finance Committee member Paul Benjamin, too, said rezoning could change the town for the better, pointing to how Lowe’s home improvement store was built after rezoning land in 2003, but that an override is a priority. He said the town has to try again after a $2.25 million override failed last September.
“The only thing we can do right away is increase the taxes to fill this gap,” Benjamin said.
Andrew Bass of North Hadley suggested a split tax rate, with businesses paying more, as a way to get support from residents for an override.
“We need the commercial district to pay for that, not the residents,” Bass said. “The residents are not the ones putting the burden on the town.”
At the outset of the meeting, Select Board Chairman Randy Izer said any concepts and out-of-the-box thinking would be welcome. “We’re in dire straits, quite frankly, and we need all the help we can get,” Izer said.
Residents are encouraged to continue sending questions to info@hadleyma.gov, with answers to be posted online.
As a result of the failed override, officials cut $600,000 by eliminating nine positions, most of which were vacant, but with two layoffs at the Fire Department and EMS.
As ideas came in, Select Board members offered insights.
Izer said pursuing a Chapter 40R smart growth district for Route 9 is a good idea, but won’t help right away. “If it comes to fruition, it’s years out,” Izer said. “It’s not going to help us in the near term.”
There are also 55-and-over projects at the Village Barn Shops, being reviewed by the Planning Board, and another planned for the former Babb Farm at the corner of Rocky Hill Road and North Maple Street. Both will bring in some new growth revenue.
Select Board member David J. Fill II said the Route 9 corridor is what keeps the town alive, and offers an opportunity to grow the way out of the problem.
“We have to find ways to increase our revenues, grow intelligently, in ways that have the least impact on town resources,” Fill said.
The elephant in the room is the skyrocketing health insurance costs, some said.
Select Board member Molly Keegan said this was the talk of the recent Massachusetts Municipal Association conference in Boston. “This was the number one conversation at the conference,” Keegan said
Interim Town Administrator Mike Mason said one way to remedy this impact is having fewer employees and to have employees move onto a spouse’s plan.
“We’re looking at potentially incentivizing folks to not take health insurance,” Mason said.
Out of the conference, Keegan said Chapter 90 road money will be increasing and there could be more aid coming for rural communities. Those won’t save the budget, though.
“There’s no one thing that’s going to come close to saving the day,” Keegan said.
“The bottom line is the commonwealth is in a very difficult position because of federal funding,” Keegan said. “One begets the other. I don’t think we can expect to be bailed out by the state anytime soon.”
Mason said there will be a structural deficit even if insurance is resolved, which is why budget discussions with Finance Director Linda Sanderson are already looking at further consolidation.
Another resident with an idea was Linda LaDuc, noting the senior center has at least 104 volunteers contributing many hours each weekday.
“Why don’t we have more volunteers in the town, volunteers could do marketing, volunteers could do communication, the volunteers could take weight off the small number of people the town can afford to pay,” LaDuc said.
Evan Jacobs, who described himself as a new resident, said that the town could get more people and businesses to move to Hadley.
“I feel like a lot of people don’t even know we exist,” Jacobs said. “I think there’s a lot more we could do to unleash our creativity there on the marketing side of things.”
Mason said part of his work involves doing outreach to local legislators and the federal delegation for more support, observing that this also includes projects like $2 million for emergency repairs to make the levee and dike system safe, and potentially up to $80 million more to enhance the levee system.