04/08/2026
HIDDEN FEES AND BUDGET BUSTING
It’s important to inform Hardwick citizens about issues that affect them and their taxes.
Today’s post: hidden fees and budget busting. Grab a cup of coffee or a shot of bourbon, because here we go! Warning! There’s math involved.
I’m not targeting any department, employee, or property owner. I’m telling a story with practical examples.
Case One: Hidden fees.
Marty submits the annual highway budget to the finance committee. His budget includes himself and three employees. Even if not filled, they will be. Marty budgets $45,000 for each full-time employee. We hire two people to fill the open positions. $90K for their salaries is in Marty’s budget, everything’s fine.
Here’s the interesting part. Marty’s budget is fine, but there are fees the salary doesn’t include. Health insurance, disability, retirement funds, and other miscellaneous parts of the ‘benefit package’ for full-time employees. These don’t come out of Marty’s budget; they come out of the general municipal budget.
In the past, no one examined these fees, finance pointed them out this year, calculated the percentages and say this averages $17,000 per person. Let’s say that equates to 30%. These fees are non-negotiable.
This means the true cost of hiring the full-time highway employee is $62K, not $45K. The two employees cost the town $124K annually, not $90K. Marty’s budget is fine, the town’s may not be.
We don’t have many full-time employees making under 45K, but we do have some making over $100K.
Every time the town hires a full-time employee, we MUST add 30% to determine the true cost to the town. Think about this when the select board signs off on a $100K salary. They just cost us $130K.
New math: online statistics say the average real estate tax bill in Hardwick is over $6,000. We’ll use $6k for this calculation. To pay for Marty’s two new employees, it takes almost 22 property owners.
Are you starting to get it?
Case Two: More Budget Busting!
AH, the cost of schools. It’s half of our budget. Here’s my example. This one might need a double shot of the good stuff.
Mrs. A lives in a 5-room, one-bath apartment in Gilbertville. She’s old, she’s lived there over 70 years. Her late hubby was not skilled at repairs. Three of her apartments are uninhabitable. The 4-family needs a complete renovation, a new roof, heating, and all systems.
Mrs. A pays her yearly sewer bill of $1,250, the flat fee for a residential unit. She pays $2,000 in real estate taxes. She has meals delivered, so does few dishes daily, takes a bath weekly, suses the toilet and washes her hands four times a day. Someone takes her laundry out a few times a month since she lacks a washer and dryer.
When Mrs. A dies, her children return from New Hampshire and sell the dilapidated home to an ugly home buyer, Mr. Z, for short money.
Mr. Z renovates the home into four brand new 3-bedroom, one-and-a-half-bath apartments with modern amenities like dishwashers and washer/dryer hookups. He rents them at market rates. What the tenants pay does not affect the town’s budget.
Mrs. A’s old place is now occupied by a couple and their two kids, another couple and their two kids, a single woman and her three kids (plus one on the way), and a single mom and her four kids round out the new tenants. Mr. Z, an absentee landlord, doesn’t know about the boyfriend, other adults or the friend and her child also living there. He knows about six adults and eleven children, and one on the way.
Mr. Z is thrilled with his investment. He pays $1250 per apartment for sewer, the going fee per household. This amounts to $10,000 a year. The taxes have increased, he will be paying above the average, say $8,000 a year. The house is renovated, neighbors are happy, and the town is getting four times the amount of taxes and sewer fees.
Mrs. A’s low sewer usage is now a problem. The property now has eleven kids living there, (maybe more) including Johnny who flushes his dinosaurs and the two teenage girls who send tampons down the pipes. All adults including the extras, take a daily shower. The kids get nightly baths, which means at least eleven baths and six showers every day. Each of the apartments runs a load of dishes and at least one load of laundry every day, while the woman with the four kids says she’s doing laundry “all the time” to keep up with the kids’ dirty clothes. With at least seventeen people, the toilets are often flushing, and water is running for somewhere constantly.
If Mrs. A’s sewer usage was a one on the scale, now it’s on steroids and more like a ten on the scale. The new issues from the place keeps Scott up at night.
The town is thrilled about the increased real estate taxes from this property, now at $8,000 instead of $2,000. Yes, there’s a catch.
With 11 new kids in the school, the state mandate a minimum of $10,500 per child, adds $115,500 onto the town’s school budget. If any special needs kids live there, that figure goes up.
In contrast to Mrs. A’s previous contributions of $2,000 in taxes and $1,250 for sewer, the new property owner provides $8,000 in real estate taxes and $10,000 annually for sewer. Where the property was no burden previously, the town now faces thousands of gallons of sewerage and $115,500 in school assessments.
Using the $6K per property average, it now takes 19 property owners to cover the school costs of the children from that one building. Keep this in mind every time someone talks about adding new apartments, or a new house is built.
Adding the new school assessment and benefit package for two employees, $150 thousand dollars is added to the town budget. This is Non negotiable.
BUSTED! Have another cocktail.
25 property owners to cover the new costs. How many property owners do we have in town to cover the entire budget?
Just two examples that show how things no one thinks about breaks our budget and causes a property tax increase.
Our select board must consider hidden fees and make sound fiscal decisions. Responsible growth requires balancing any hidden fee against generated income and the benefits offered to citizens. As a business person, I’ve encountered these situations and will bring my knowledge to make wise decisions that benefit all.
I am running for Select Board because I know I can make a difference in Hardwick. I bring common sense. I ask for your support.