Proposed Budget & Financial Plan for FY2027 in Andover, MA
On February 6, Town Manager Andrew Flanagan unveiled the proposed Budget & Financial Plan for the fiscal year 2027, totaling $265,923,119. This represents an increase of $13,096,655, or 5.18%, over the previous year. The budget development process involved contributions from all departments to accurately project personnel and operating costs. Flanagan emphasized maintaining fiscal health while delivering quality services and addressing new community priorities. He stated, "The budget has been developed to deliver the Town’s most fundamental services at a high level, while also allocating resources to meet the evolving expectations of the community."
The budget proposal will undergo review before its potential adoption at the Annual Town Meeting. It was presented to the Select Board on February 9 and the Finance Committee on February 18. Both entities have planned further reviews, including a joint budget session on March 14, before making a decision on the budget article (Article 4) for the Town Meeting warrant. Detailed recommendations are accessible at andoverma.gov/fy2027budget.
Key Budget Allocations
The recommended budget includes diverse funding allocations. The total budget of $265,923,119 encompasses the Water & Sewer Enterprise Funds and the Capital Improvement Program. The School Operating Budget stands at $110,578,564, while the Town Operating Budget is $46,603,587, excluding the Water & Sewer funds. Overall, the budget marks a 5.18% increase, with the Town’s operating budget rising by 2.75% and the School Department’s allocation increasing by 3.75%.
Highlighted Budget Items
The budget includes significant initiatives such as the expansion of Fire Rescue Services, completing efforts to fully operationalize a third Andover Fire Rescue ambulance, which involves hiring additional firefighters and creating an Assistant Fire Chief role. Revenue from ambulance billing is expected to cover half of these costs. Furthermore, a new Transportation Program Manager will focus on road improvements and traffic safety, funded by downtown parking revenues.
Other key items include adding a Capital Project Manager within the Department of Public Works to manage infrastructure projects, funded through the Water Rate Plan, and forming a Civic Media Team within the Innovation & Technology Department, funded by PEG franchise revenues. Additionally, a 12% increase in health insurance costs is anticipated, driven by national inflation trends and the growing use of specialty drugs.
The recommended Capital Improvement Program (CIP) for FY2027 totals $50,758,394, funded through various sources, including general fund revenue and borrowing. Tax implications suggest a projected average single-family tax bill increase of 4.39% for FY2027, aligning with long-range financial strategies and reflecting debt obligations and senior tax exemptions. For more information, contact the Town of Andover at 36 Bartlet Street, Andover, MA 01810, or call 978-623-8200.