HAVERHILL — Mayor Melinda Barrett’s new $252.5 million spending plan that goes into effect July 1 includes the largest property tax hike in city history — $444 for the owner of the average valued single family home.
That’s more than last year’s $180 increase and the prior’s year’s $215 increase combined.
The council voted 10-0 to approve the budget, with Councilor Colin LePage absent.
Following approval of the budget, Barrett told the council that some residents will be “quite upset” with the tax increase but that it is needed to “right the ship.”
According to the mayor’s office, the property tax rate is set to increase by 8%, however, property valuations and the tax rate shift could affect this, and those decisions will not be made until the annual tax classification hearing this fall. At the classification hearing, the mayor and council could decide to increase the tax burden for businesses, which would give homeowners a tax break, or vice-versa.
The mayor’s budget also calls for big increases to the water and wastewater rates: the cost of water is set to rise by 17% and wastewater rates are up 11%.
Council President Thomas Sullivan said the council passed the budget at a rare Monday night meeting so that city CFO Angel Perkins could attend and answer questions.
Council chambers were mostly empty as Barrett announced that this year’s budget talks included members of the City Council in an effort to “be more open than perhaps in the past.”
Councilors often argued and haggled with former Mayor James Fiorentini right up until the June 30 deadline for passing a spending plan for the new fiscal year, which begins July 1.
Barrett offered few details about the budget, other than to say it will address a deficit in free cash, will maintain services that people expect and want, including strong public safety departments, a strong DPW, and will fund schools as best the budget can.
“It is not where we want to be but it’s where we find ourselves,” she said. “I think this is the step we have to take to correct the deficit that we have in free cash and funding ongoing items with free cash. It’s a step forward.”
Councilor John Michitson blamed the need for the biggest tax increase in city history on the former mayor’s refusal to raise taxes as much as he could have during his 20-year run in the corner office. Michitson claimed Fiorentini returned $37.5 million to taxpayers during his tenure that could have been used to increase city spending and services.
“If only half this funding was used to either pay down the Hale debt and/or saving the funding in a lock box for future needs, we would not be boxed in today,” said Michitson.
Michitson said the new budget includes many deferred “financial responsibilities” he said can no longer be deferred. He said the new budget includes “just a .8% increase in the number of city employees,” which he said are at the highest levels since 2001.
“And with 71% of students in the district having high needs, we need to help them to earn a living wage, and that’s going to cost money, so that’s increasing,” Michitson said of increases in the school budget.
Funding for recent pay increases for teachers and firefighters are major drivers of increases in the new city budget, but neither were mentioned during Monday’s meeting.
The 2025 budget also includes money for upcoming collective bargaining agreements that will expire July 1, as well as cost of living increases for non-union employees.
In February, Barrett announced the city and Haverhill Firefighters Local 1011 had come to a collective bargaining agreement that will cost the city about $1.2 million, increasing the firefighter budget by 15% over the past three years. The firefighter contract expires July 1, and expectations are they could receive another pay increase.
According to a budget forecast, by 2030 the city’s operating budget will exceed $300 million.
To view the FY25 budget document visit cityofhaverhill.com and click on the link to the Auditor’s Office.
'; var element = document.getElementById("sub_message"); element.appendChild(subMessage); console.log("Code Loaded!"); } else { var subMessage = document.createElement('div'); subMessage.id = 'sub-message-top'; subMessage.class = 'panel panel-default'; subMessage.style.backgroundColor = '#eee'; subMessage.style.borderRadius = '5px'; subMessage.style.padding = '10px'; subMessage.style.marginTop = '25px'; subMessage.style.marginBottom = '25px'; subMessage.innerHTML = '
Support local journalism.
Subscribe Today'; var element = document.getElementById("sub_message"); element.appendChild(subMessage); console.log("Code Loaded!"); }}
