Health insurance, benefits drive majority of Haverhills proposed property tax increase
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Summary
City auditor Angel told the Haverhill City Council that a 12.5% rise in employee health insurance costs, combined with prior debt service and school funding increases, account for the bulk of an estimated $299 tax increase for the average single-family home.
Angel, city auditor, told the Haverhill City Council the largest single driver of this years proposed property tax increase is employee benefits.
"The largest driver this year is employee benefits," Angel said, adding that the city saw "an average increase of 12 and a half percent, which amounted to just about, well, just shy of dollars 4,000,000." She said that increase accounts for about $139 of an estimated $299 tax increase for an average single-family home valued at $532,000.
The auditor outlined several other contributors to the levy increase. She said payments related to "the Constantino" project were being phased in over multiple years, with borrowing and earlier favorable market rates affecting timing; the first payment will not be required until fall 2027 and is reflected in the 2026 operating budget. Angel also cited education contributions, noting a 2.5% increase to direct school contributions and a larger Chapter 70 estimate in the 6%-7% range noted in the budget book.
During council discussion, Councilor Rogers asked what "state assessment" meant; Angel replied that it referred to Cherry Sheet assessments the state subtracts from the citys monthly state aid and listed items such as school choice, charter school charges, MBTA assessments and mosquito control. Angel said the Cherry Sheet assessment was roughly $9.3 million for 2025 and that the Senate budget then under consideration estimated $9.6 million. She said Chapter 70 was estimated at about $94 million, a 7.1% increase.
Councilors pressed on the health-insurance increase and how the spending decisions had been made. Councilor Baselier noted the GIC health-insurance rise was 12.5% after a 5% increase the previous year and called it "anomalous" compared with recent years. Angel said the city had modeled a long-term levy strategy and aimed to minimize and stabilize levy use while keeping a prudent excess levy as a buffer against economic downturns.
The auditor said department requests originally totaled about $278 million; the mayors office and staff reductions brought the proposed budget down substantially through line-item reviews, trimming roughly $1.3 million after departmental conversations. Angel emphasized the overall goal was a balanced, sustainable budget that preserves services and meets financial benchmarks.
Councilors also asked about resident relief options such as senior tax credits and senior work-off programs; Angel said the city had held an initial meeting and that follow-up work was planned prior to final adoption.
Why it matters: Councilors and residents framed the issue as a straightforward trade-off: rising fixed costs mean the city must either raise revenue or cut services. Angel said the city was trying to preserve services and avoid layoffs while building and stabilizing levy capacity for the coming decade.
