League of
Women Voters of the Upper ValleyWhat are Hanover’s main sources of revenue and expense?
Hanover’s yearly budget is about $33 million—including the Town general fund and enterprise funds ($19 million), the Hanover School District ($7.5 million), and the Dresden School District ($6.5 million).
-- For school expenditures:
Like most towns, Hanover spends about 70% of its property tax revenue
to fund the public schools (with 50% of that to the Hanover School
District for elementary education, 45% to the Dresden School District
for middle- and high-school education, and 5% to the state of New
Hampshire for state education taxes).
Detailed information about the school budget is mailed to all taxpayers
yearly in February, as a part of the school district annual report
mailed before the annual school district meetings. Copies are also
available at Town Hall, in the town libraries, in the schools, and in
the school district office.
-- For municipal expenditures:
About 30% of the property tax revenue goes to Hanover’s municipal
budget to finance police, fire, public works, libraries, parks and
recreation, administration, and other public services. Although
municipal activity accounts for over 55% of Hanover’s annual budget,
much of this activity is funded by service fees (e.g., for sewer,
parking, and ambulance).
Detailed information about the municipal budget is mailed to local
taxpayers yearly in April, as a part of the town annual report sent
before Town Meeting. Copies are also available at Town Hall and in the
town libraries.
Understanding two terms may help your understanding of the municipal
budget.
(1) "The General Fund" covers all funding that doesn’t come from a special account (such as a trust or special district revenues). The General Fund is used for administration, libraries, recreation, planning and zoning, police, public works, and town property maintenance. (2) "Trust Funds" are special funds set aside for capital improvements projects or other specified uses.
What is the budget process?
• Municipal budget: The municipal fiscal year begins July 1. Starting in November, all departments, committees, and others requesting town appropriations submit budget proposals. Town administrators meet with these groups and derive a line-by-line budget proposal. During February and March, the budget is discussed in detail at a series of public meetings of the Select Board. The Board approves a final budget proposal in mid- to late-March. Finally, the proposal is discussed, possibly amended, and voted at Town Meeting in May.
• School district budgets: The schools’ fiscal year also begins July 1. Starting in October, administrators at the three schools draft their proposed budgets. In November, the principals and the district administrators review these budgets and compile them for the school boards. After receiving the proposed budget in December, the school boards hold a series of open meetings/public hearings in January, during which budgets are discussed in detail. Hanover voters discuss and vote on the final budget at the annual School District Meetings in March. For the Dresden district and Hanover district, the vote is by ballot, so the budget may not be amended. Until 2005, the Hanover district vote was during an open meeting, so the budget could be amended.
What is the role of the Finance Committee?
Although the Select Board oversees the municipal budget and the school boards oversee the school budgets, the Finance Committee is the only group that looks at the entire financial situation for the town—including both the municipal and the school budgets. Committee members serve as an independent body representing the citizens, to observe, question, advise and make recommendations about both budgets. After attending all municipal and school budget hearings, the committee holds its own public meeting to gain citizen input. The Committee decides whether to support the budgets or not, and reports its findings in writing the Annual Reports and orally at the annual meetings.
If you have any questions about finances, you may contact:
• Municipal budget: 643-0705, or betsy.mcclain@hanovernh.org
• School budgets: 643-6050, extension 228, or john.aubin@valley.net
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