Hanover Approves $9.9M Bond for Water and Public Safety Upgrades

The Hanover Select Board has approved a $9.9 million bond anticipation note (BAN) to support critical municipal projects, including upgrades to the town’s water infrastructure, the purchase of emergency vehicles, and other previously approved capital expenditures.

During its Feb. 18 meeting, the board discussed the town’s financial strategy, ultimately deciding to issue a short-term bond rather than committing to long-term borrowing at this time.

“We retained our AA2 rating that we’ve had for quite some time, and we received the MIG1 rating from Moody’s, which is the highest they give for municipalities for short-term issuances,” said Town Manager Joe Colangelo.

The bond will finance key infrastructure projects, including the renovation of a water storage tank and the King Street water main replacement.

“Most of them are previously borrowed items that we did a ban for two years ago,” Colangelo explained. “And then there’s two or three new items that have since been approved by voters that are part of this issuance, two of which are the water projects that were approved a year or two ago at Town Meeting for the water tank renovation and for the King Street waterline.”

The King Street water main project was initially authorized for $2 million but came in under budget at $1.8 million. The water treatment facility improvements, originally estimated at $1.75 million, ended up costing $850,000. The Select Board emphasized that the town only borrows what is actually spent on projects.

“If things came in less, that’s all you can borrow on,” said Budget Director Jim Hoyes. “But the other ones came in as estimated.”

Board members also discussed the town’s broader approach to water infrastructure improvements and long-term financing. Some members raised concerns about relying on short-term borrowing rather than committing to a structured, long-term bond that could stabilize financing costs.

“Eventually we’re going to have to pay this money back. I mean, we can’t just keep kicking the can down the road and pay interest on it forever and pay closing costs every time,” said Select Board member Steve Louko.

Colangelo assured the board that the town's borrowing strategy was based on careful planning.

“We don’t borrow for something that we don’t [purchase], so we only borrow for what we actually [spend],” he said.

While Hanover’s water system improvements are progressing, the discussion highlighted ongoing challenges in funding infrastructure projects without adding long-term financial strain. The town is expected to revisit its borrowing approach next year when the bond anticipation note comes due for renewal.

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