Revenue $310,893,296
Local Revenue Receipts
Local revenue receipts are funds generated at the local level, aside from property taxes. Some of the most common types of local receipts include excise taxes, regulatory fees (such as fines, licenses, and permits), user fees (for services such as water, sewer, and garbage), departmental revenues, and investment income. Typically, local receipts are deposited into the community's general fund unless they are designated for specific departmental uses in accordance with state regulations.
Certain local receipts are mandated by law (for example, motor vehicle excise taxes, hunting licenses, and firearms permits), while others can be negotiated (such as investment income and payments in lieu of taxes). Additionally, some revenue sources are established through the adoption of local ordinances or bylaws. With user fees, a community can set charges that either partially or fully fund a particular service, and periodically reassess them to ensure an adequate revenue stream to support those services.
Local Excise Taxes
Motor vehicle excise tax represents the city's largest single source of local revenue. Up until February 2026, this category experienced a substantial year-over-year decline of over 22%. However, in March, there was a notable recovery as the majority of the city's motor vehicle excise tax was collected. Initially, revenue estimates suggested that this category would remain flat in 2027; however, following the results from March's collections, we felt confident enough to increase this estimate by 6.5%.
In addition to motor vehicle excise, the city has also implemented:
- A 3% cannabis excise tax
- A 0.75% meals tax
- A 6% room tax
Furthermore, per state regulations, there is a 1% boat excise tax, of which 50% of the annual revenue is allocated to the Waterways Revolving Fund. This fund can be utilized for harbor and waterway maintenance, infrastructure improvements, and enhancing boating safety.
| Excise | 2023 Actual | 2024 Actual | 2024 % Change | 2025 Actual | 2025 % Change | 2026 Projected | 2027 Proposed | 2027 % Change | 2027 $ Change |
|---|---|---|---|---|---|---|---|---|---|
| Boat Excise | $9,246 | $9,938 | 7.5% | $6,991 | -29.7% | $8,497 | $6,900 | -18.8% | $(1,597) |
| Cannabis Excise | $1,143,086 | $1,180,917 | 3.3% | $1,155,574 | -2.1% | $1,133,040 | $1,133,040 | 0.0% | – |
| Farm Animal Excise | $1,953 | $2,358 | 20.8% | $1,506 | -36.1% | $1,500 | 0.0% | $1,500 | |
| Hotel Room Tax | $345,181 | $311,751 | -9.7% | $316,502 | 1.5% | $309,979 | $310,000 | 0.0% | $21 |
| Meals Tax | $1,279,635 | $1,292,616 | 1.0% | $1,312,554 | 1.5% | $1,259,948 | $1,300,000 | 3.2% | $40,052 |
| Motor Vehicle Excise | $7,700,291 | $8,459,321 | 9.9% | $9,308,339 | 10.0% | $8,477,111 | $9,025,789 | 6.5% | $548,678 |
| Grand Total | $10,479,391 | $11,256,901 | 7.4% | $12,101,467 | 7.5% | $11,188,575 | $11,777,229 | 5.3% | $588,654 |
Other Local Receipts
A Payment in Lieu of Taxes (PILOT) is a contribution made by tax-exempt organizations or government entities to local governments to compensate for the loss of property tax revenue. These payments are generally voluntary or based on negotiated agreements, designed to help municipalities fund essential public services, including fire safety and infrastructure.
Waste Disposal Fee as a PILOT Agreement
One example of a PILOT agreement is the Waste Disposal Fee that the city has with Covanta. Currently, the city receives a rate of $4.69 per ton of trash processed at the waste disposal facility. With an average monthly tonnage of 53,000, this results in approximately $250,000 in monthly revenue for the city.
Additional PILOT Agreements
- Bradford Solar
- NRG DG Haverhill
- Nautilus Solar
- Fondi Road Solar
- BWC Camp Brook
- Kearsarge Haverhill
| 2023 Actual | 2024 Actual | 2024 % Change | 2025 Actual | 2025 % Change | 2026 Projected | 2027 Proposed | 2027 % Change | 2027 $ Change | |
|---|---|---|---|---|---|---|---|---|---|
| Penalties and Interest on Excise | $92,246 | $105,194 | 14.0% | $116,886 | 11.1% | $105,194 | $105,000 | -0.2% | $(194) |
| Penalties and Interest on Taxes | $517,218 | $695,267 | 34.4% | $626,663 | -9.9% | $637,167 | $637,000 | 0.0% | $(167) |
| Payment in Lieu of Taxes | $16,348 | $16,348 | 0.0% | $35,798 | 119.0% | $35,798 | $281,555 | 686.5% | $245,757 |
| Waste Disposal Facility Payment | $2,746,258 | $3,163,498 | 15.2% | $3,083,604 | -2.5% | $2,978,566 | $3,023,244 | 1.5% | $44,678 |
| Grand Total | $3,372,070 | $3,980,307 | 18.0% | $3,862,951 | -2.9% | $3,756,725 | $4,046,799 | 7.7% | $290,074 |
Fees
User fees are charges designed to partially or fully finance specific services and can be periodically evaluated to maintain a sufficient revenue stream for that service. A fee represents the cost levied on individuals who utilize or gain benefits from the service. Such fees may be implemented when a local government delivers a particular service (like a police detail), grants a permit or license, or provides a benefit, such as a recreational program.
| Fees | 2023 Actual | 2024 Actual | 2024 % Change | 2025 Actual | 2025 % Change | 2026 Projected | 2027 Proposed | 2027 % Change | 2027 $ Change |
|---|---|---|---|---|---|---|---|---|---|
| Abandoned Property Fee | $22,750 | $24,500 | 7.7% | $19,275 | -21.3% | $10,000 | $10,000 | 0.0% | – |
| Ambulance Fee | $150,000 | $155,250 | 3.5% | $160,684 | 3.5% | $135,770 | $140,000 | 3.1% | $4,230 |
| Clerk Fees | $68,883 | $77,035 | 11.8% | $60,178 | -21.9% | $50,000 | $55,000 | 10.0% | $5,000 |
| Fire | $73,465 | $63,440 | -13.6% | $56,308 | -11.2% | $46,000 | $50,000 | 8.7% | $4,000 |
| Fire Detail Admin. Fee | $7,396 | $6,900 | -6.7% | $11,734 | 70.1% | $8,000 | $10,000 | 25.0% | $2,000 |
| Planning & Appeals | $40,981 | $11,585 | -71.7% | $14,600 | 26.0% | $14,000 | $14,000 | 0.0% | – |
| Police Detail Administration Fee | $95,017 | $106,098 | 11.7% | $129,193 | 21.8% | $109,000 | $115,000 | 5.5% | $6,000 |
| Police Misc Fees | $3,720 | $6,435 | 73.0% | $4,215 | -34.5% | $4,200 | $4,200 | 0.0% | – |
| Tax Collection Fees | $665,771 | $666,186 | 0.1% | $695,926 | 4.5% | $585,000 | $600,000 | 2.6% | $15,000 |
| Waterway Fee | $870 | $774 | -11.0% | $735 | -5.0% | $700 | $700 | 0.0% | – |
| Grand Total | $1,128,853 | $1,118,203 | -0.9% | $1,152,848 | 3.1% | $962,670 | $998,900 | 3.8% | $36,230 |
Department Revenue
Department revenue consists of funds received by local departments—such as police, public works, and town clerk—that do not come from property taxes, local aid, or specific state grants.
This year, the estimate for cable fees has been lowered for the segment of the franchise fee allocated to capital. This reduction will be deposited to the newly established Cable Public Access revolving fund, which was adopted by the City Council in 2026.
Medicaid reimbursement (also known as School-Based Medicaid Programs or School-Based Services (SBS) claiming) allows local governments to receive federal funds to offset costs for providing health-related services—such as nursing, therapy, and mental health care—to Medicaid-eligible students.
| 2023 Actual | 2024 Actual | 2024 % Change | 2025 Actual | 2025 % Change | 2026 Projected | 2027 Proposed | 2027 % Change | 2027 $ Change | |
|---|---|---|---|---|---|---|---|---|---|
| Cable Fee | $336,306 | $442,891 | 31.7% | $530,751 | 19.8% | $303,253 | $200,000 | -34.0% | $(103,253) |
| Compost Revenues | $23,544 | $23,319 | -1.0% | $20,028 | -14.1% | $20,000 | $20,000 | 0.0% | – |
| Health Services | $22,549 | $15,385 | -31.8% | $11,620 | -24.5% | $10,000 | $10,000 | 0.0% | – |
| Recycling Revenue | $26,814 | $53,266 | 98.6% | $34,773 | -34.7% | $30,000 | $30,000 | 0.0% | – |
| Refuse Charges | $123,448 | $144,727 | 17.2% | $165,328 | 14.2% | $160,000 | $160,000 | 0.0% | – |
| Sale of Trash Bags/Carts | $139,473 | $137,608 | -1.3% | $137,002 | -0.4% | $135,000 | $135,000 | 0.0% | – |
| Lease & Rentals | $191,513 | $225,058 | 17.5% | $199,510 | -11.4% | $198,450 | $198,450 | 0.0% | – |
| School Medicaid | $789,022 | $796,530 | 1.0% | $1,014,469 | 27.4% | $950,000 | $1,000,000 | 5.3% | $50,000 |
| Grand Total | $1,652,669 | $1,838,782 | 11.3% | $2,113,480 | 14.9% | $1,806,703 | $1,753,450 | -2.9% | $(53,253) |
License & Permits
Licenses and permits serve as local receipts, reflecting fees imposed for the privilege of engaging in specific activities, such as construction, health services, and alcohol sales.
The city has experienced a significant year-over-year decline in licenses and permits, with a drop of over 27% as of March 2026, primarily due to a reduction in building permits. This decline is attributed to several large projects that were permitted in previous fiscal years. While the city remains active in issuing permits, the revenue decrease is largely a result of the scale of these ongoing projects.
| License & Permits | 2023 Actual | 2024 Actual | 2024 % Change | 2025 Actual | 2025 % Change | 2026 Projected | 2027 Proposed | 2027 % Change | 2027 $ Change |
|---|---|---|---|---|---|---|---|---|---|
| Building Permits | $2,902,224 | $1,606,758 | -44.6% | $1,784,220 | 11.0% | $1,527,301 | $1,327,000 | -13.1% | $(200,301) |
| Clerk-All Other Licenses | $315,965 | $308,745 | -2.3% | $279,885 | -9.3% | $120,000 | $250,000 | 108.3% | $130,000 |
| Constable License Fee | $1,285 | $900 | -30.0% | $821 | -8.8% | $680 | -100.0% | $(680) | |
| Fire | $107,070 | $109,565 | 2.3% | $108,353 | -1.1% | $80,000 | $90,000 | 12.5% | $10,000 |
| Gas | $62,481 | $72,741 | 16.4% | $59,910 | -17.6% | $50,000 | $50,000 | 0.0% | – |
| Health Licenses | $254,985 | $253,685 | -0.5% | $202,056 | -20.4% | $150,000 | $175,000 | 16.7% | $25,000 |
| Liquor License | $95,529 | $96,740 | 1.3% | $100,931 | 4.3% | $80,931 | $90,000 | 11.2% | $9,069 |
| Marriage | $18,050 | $24,071 | 33.4% | $47,005 | 95.3% | $40,000 | $42,000 | 5.0% | $2,000 |
| Plumbing | $116,270 | $191,580 | 64.8% | $83,140 | -56.6% | $75,000 | $95,000 | 26.7% | $20,000 |
| Sealer Weights & Measures | $22,005 | $29,417 | 33.7% | $16,300 | -44.6% | $16,000 | $16,000 | 0.0% | – |
| Wire Inspector | $202,515 | $348,283 | 72.0% | $205,774 | -40.9% | $150,000 | $165,000 | 10.0% | $15,000 |
| Grand Total | $4,098,379 | $3,042,484 | -25.8% | $2,888,395 | -5.1% | $2,289,912 | $2,300,000 | 0.4% | $10,088 |
Fines & Investments
Parking meter revenue estimates have been increased due to an uptick in collections between March 2025 and 2026.
Investment income has been reduced as ARPA and borrowing proceeds will no longer be available for investment in 2027.
| 2023 Actual | 2024 Actual | 2024 % Change | 2025 Actual | 2025 % Change | 2026 Projected | 2027 Proposed | 2027 % Change | 2027 $ Change | |
|---|---|---|---|---|---|---|---|---|---|
| Court Fines | $29,824 | $133,075 | 346.2% | $183,522 | 37.9% | $130,000 | $144,000 | 10.8% | $14,000 |
| Non Criminal Fines | $3,860 | $5,130 | 32.9% | $6,550 | 27.7% | $6,550 | $5,000 | -23.7% | $(1,550) |
| Parking Fines | $248,148 | $241,899 | -2.5% | $263,531 | 8.9% | $270,825 | $227,000 | -16.2% | $(43,825) |
| Parking Meters | $561,447 | $319,171 | -43.2% | $196,126 | -38.6% | $196,125 | $230,000 | 17.3% | $33,875 |
| Towing Fines | $23,750 | $26,175 | 10.2% | $24,775 | -5.3% | $24,775 | $19,000 | -23.3% | $(5,775) |
| Investment Income | $1,606,088 | $3,222,599 | 100.6% | $3,120,502 | -3.2% | $1,976,991 | $1,000,000 | -49.4% | $(976,991) |
| Grand Total | $2,473,117 | $3,948,049 | 59.6% | $3,795,006 | -3.9% | $2,605,266 | $1,625,000 | -37.6% | $(980,266) |
Other Available Revenue
This revenue group comprises free cash used to support the operating budget, indirect receipts from Enterprise funds for administrative overhead reimbursement, and funding from the Hospital Trust fund, which subsidizes the Public Health department.
Since 2025, the city has made a concerted effort to reduce the annual allocation from free cash, aligning with the current administration's goal. By decreasing reliance on free cash (one-time funds) for recurring expenses, this strategy aims to foster a structurally sustainable operating budget.
In Massachusetts, Free Cash is a certified, unrestricted revenue source that represents unspent funds from the previous fiscal year's operations. It is calculated by the Department of Revenue's (DOR) Division of Local Services and is generated when actual revenues exceed budget estimates, and expenditures are lower than appropriations.
| Other Available Revenue | 2023 Actual | 2024 Actual | 2024 % Change | 2025 Actual | 2025 % Change | 2026 Projected | 2027 Proposed | 2027 % Change |
|---|---|---|---|---|---|---|---|---|
| Free Cash (Budget Only) | $6,508,915 | $6,193,120 | -4.9% | $5,300,000 | -14.4% | $5,200,000 | $5,150,000 | -1.0% |
| Transfer From Enterprise | $854,634 | $872,801 | 2.1% | $890,257 | 2.0% | $908,062 | $935,304 | 3.0% |
| Transfer from Trust & Agency | $354,281 | – | -100.0% | $100,000 | 0.0% | $125,000 | $125,000 | 0.0% |
| Grand Total | $7,717,830 | $7,065,921 | -8.4% | $6,290,257 | -11.0% | $6,233,062 | $6,210,304 | -0.4% |