By Beth David, Editor
The Town of Fairhaven faces forecasted deficits starting with $1,158,858 for Fiscal Year 2028, increasing to $2,153,646 in FY30, according to financial projections presented to the Select Board at its 7/27/26 meeting.
The town’s operating budget for FY27 is $63.2 million, with $13.1 million from state aid and $9.2 from local receipts (building fees, excise taxes).
Town Administrator, Keith Hickey, and Assistant TA of Finance/Town Accountant Anne Carreiro, presented the numbers using conservative revenue estimates based on historical trends, and using contractual obligations to estimate expenditures/
SB member, Rick Trapilo, has been talking about getting a financial forecast since before he got elected, saying the town has to identify the problem before it can fix it.
He has consistently said the town has a “spending problem,” language that SB chairperson, Andrew Romano, took exception to.
Mr. Romano said it was insulting to department heads to imply that they are overspending.
Mr. Trapilo, however, would not back down, saying th town has both a revenue and expenditure problem.
Mr. Trapilo has been highlighting his business experience, trying to make parallels to government spending.
Mr. Hickey, however, tried to explain that government and business operate on different premises. The town does not have the same tools available to it that a business has, including its ability to simply raise the price of goods.
The town’s ability to increase property taxes is regulated by Proposition 2 /12, which limits the town to a 2 1/2% increase plus new growth and a few other factors..
Everyone did seem to agree that the state’s aid to municipalities is sorely lacking, has not kept up with inflation, and has not made up for the restrictions imposed by Prop 2 1/2.
One variable is the income from the Wind Turbines, about $150-200K per year, that will end in a few years at the end of the lease.
There was some confusion as to if it is the town or the developer who does not want to renew the lease. The developer has asked the town to revise the terms of the lease to make it easier for them to get financing to upgrade the WTs. But there is some question as to whether or not they could get a permit to upgrade due to changes in the town’s bylaws.
Mr. Hickey said he would reach out to the developer..
Another variable is the loss of income from tuition paid by Acushnet students attending high school. The town of Acushnet has not yet reached a deal with Fairhaven, but they did make a deal with Old Rochester Regional, which means that at least some students will go to ORR instead of FHS. That number is unclear.
Mr. Trapilo also suggested an immediate hiring and wage freeze. Mr. Hickey explained that collective bargaining agreements complicate the implementation of that. (See page 4 for letter from Mr. Trapilo.)
“I’m not sure what the fix is,” said Mr. Hickey, adding that the it is not a one year problem.
He said he had met with the mayor of New Bedford to start discussing places where the two municipalities can share resources. He said the mayor seemed open to working with the town. They talked about possibly using their tourism resources to promote Fairhaven and its events, as the town eliminated the tourism department.
Mr. Hickey said he is actively looking for places to regionalize or share resources to save money.
He also said that the town has a tremendous resource in the newly created 40R district. He said the town will soon be aggressively promoting the district to developers and current property owners.
The 40R overlay district allows for denser development and mixed use development, with a relaxing of the parking requirements.
Developers can build up to five stories high for residential and commercial uses in the same building. The district includes the plazas that include Walmart, Staples, Ocean State Job Lot, Stop & Shop; and also include Middle Street along the waterfront.
Town staff have also been trying to identify other areas for increased revenue. One of those is short term rentals (STRs). Property owners are supposed to register with the state, collect hotel tax, and that revenue should come back to the town. The town definitely has many STRs, but it seems that none of them are complying.
The town is trying to identify those properties, and will send letters to the owners informing them of their responsibilities. Mr. Hickey said he estimates about $50K in revenue per year from STRs.
“It isn’t going to fix the problem,” he said. “But it’s going to help.”
The revised documents used in the meeting are available on the town’s website, under Select Board documents, agendas, and minutes.
•••
Click here to download the 8/6/26 issue: 08-06-26 Marketplace
Support local journalism, donate to the Neighb News with PayPal
