December 11, 2023

Select Board Reviews Articles Approved at Special Town Meeting and Accepts Capital Improvement Plan for FY2025-2029

• Select Board discusses articles approved at the November 20 Special Town Meeting and considers next steps;
• Receives update on Town’s long-term borrowing and votes to approve issuance of general obligation bonds; and
• Votes to accept Town Manager’s recommended Capital Improvement Plan for FY2025-2029.

ANDOVER, MA – The Andover Select Board held its final meeting of the calendar year on Monday, December 11 in the School Committee Conference Room at the Andover Public Schools Administrative Offices. The meeting included discussion of the two items approved during the Special Town Meeting held on November 20: Article 1, which relates to the authorization of a ballot question pertaining to Andover’s open Town Meeting form of government, and Article 7B, which appropriates funds for the design of an “interim” renovation project to Andover High School.

The Board also received an update on the Town’s long-term borrowing for authorized projects, voting to approve the issuance of general obligation bonds that will enable the borrowing of $55 million. Considering the proposal in a second reading, the Board also voted to accept the Town Manager’s recommended Capital Improvement Program, which outlines capital investments in projects, programs, and equipment totaling $18,104,126 in FY2025.

Discussion of Article 1

Article 1 was submitted by a private petitioner and sought authorization for the Select Board to place a non-binding question on the Annual Town Election ballot asking voters if they favor or oppose retaining Andover’s open town meeting form of government. 

This article was approved by Town Meeting, however the action was strictly advisory, as a vote at Special Town Meeting is not among the legally permissible vehicles for placing non-binding questions on a local ballot, per Chapter 53 Section 18A of Massachusetts General Law. There are three permissible vehicles for placing a question of this nature on local ballots: a vote of the Select Board, a vote of the annual town meeting, or Select Board approval of a petition signed by ten registered voters. If the Select Board declines to approve a 10-voter petition, a petition signed by 10 percent of registered voters in the Town can be submitted to the Registrar of Voters. 

Members of the Select Board expressed a desire to honor Special Town Meeting’s sentiment in favor of asking residents if they are in support of Andover’s existing form of government . 

In the form that it was presented to Special Town Meeting, the proposed ballot question had several flaws that may result in confusion among voters. Select Board Member Chris Huntress volunteered to work with Town Counsel Doug Heim to develop a refined question that would reflect the spirit of what was approved by Special Town Meeting with improved clarity. 

The Board did not vote on how to proceed on Article 1 and the potential ballot question, but agreed to revisit the topic at a future meeting when a revised question is drafted. The Board may decide to place a non-binding question on the ballot at any point prior to 35 days before the election. The Town Election is scheduled for Tuesday, March 26, 2024.

Discussion of Article 7B

Town Manager Andrew Flanagan provided an update on recent action taken by the Town in response to the passage of Article 7B, which authorized the appropriation of $500,000 to study and design an interim project making short-term investments at the existing Andover High School. The project would seek to address the school’s most significant deficiencies, including overcrowding, and is anticipated to cost approximately $50 million to $60 million. 

The design of the interim project will be managed by the Permanent Town Building Advisory Committee (PTBAC). The Committee is comprised of five core members, with additional members added to give the committee even deeper expertise. Representatives from the school administration, Town administration, the Andover High School Building Committee, and the School Committee will be added to help oversee the interim Andover High School project. 

This approach is similar to the model followed during recent Town building projects, including the Ballardvale Fire Station and the Robb Center, where the core membership of the PTBAC was expanded to include representatives with project-specific expertise. 

Chief Administrative and Financial Officer Patrick Lawlor was recently appointed as the Town administration’s representative, and Assistant Superintendent for Administration and Finance Keith Taverna was appointed as Andover Public Schools’ representative on Monday. Mark Johnson will serve as the Andover High School Building Committee’s representative, and a designee from the School Committee is expected to be named in the coming days. 

Flanagan noted that selection of a consultant to design the interim project at Andover High School will take place over the coming months. When the design of the interim project is completed, an article will be submitted to Town Meeting seeking borrowing authorization to fund the project. The design process is not expected to be complete in time for a borrowing authorization article to be included on the warrant for the Annual Town Meeting in 2024. 

 Long-Term Borrowing
 The Select Board voted to approve the issuance of general obligation bonds, which will enable the Town to borrow $55 million for several previously approved projects.

Chief Administrative and Financial Officer Patrick Lawlor provided the Board with a brief overview of the bond issuance process prior to the Board’s vote. According to Lawlor, the Town went out to market on December 6 with the intent to borrow $55 million. The solicitation garnered 12 bids, which represents one of the most competitive bidding processes for general obligation bonds seen in recent years. The process resulted in a net interest rate for the bonds of 3.59 percent, which Lawlor described as a favorable rate given the current market conditions. The Town also received $3.8 million in bond premium, discounting the Town’s total borrowing to about $52 million. 

Projects that will be funded through this bond issuance include West Elementary and Shawsheen Preschool, the Ledge Road Landfill, watermain projects, Town building and school projects, and public works and fire rescue vehicles. 

Capital Improvement Program
The Select Board considered the Capital Improvement Program (CIP) for FY2025-2029 recommended by Town Manager Andrew Flanagan. The CIP was initially reviewed by the Board during its November 29 meeting, and was further reviewed during a Tri-Board Meeting held on December 6.

The CIP serves as a comprehensive framework for capital investments in Town projects, programs, and equipment over the next five years, and recommends the expenditure of $18,104,126 in FY2025. This funding level represents 5.53 percent of the budget, which is below the 5.72 percent target established in the Town’s long term financial plan.

The total recommendation for FY2025 has increased by $150,000 since the plan was initially presented to account for an additional expenditure from free cash for the removal of hazardous trees on Town conservation properties. Funding for this priority was added to the CIP based on input from the Select Board and residents.

The total CIP is recommended to be funded through several sources: general fund revenue, general fund borrowing, “free cash,” specially dedicated funds (e.g., Chapter 90 funding), and the Water and Sewer Enterprise Fund.

The Board voted unanimously to accept the recommended CIP. The CIP will eventually be presented at Annual Town Meeting through a series of articles corresponding to each funding source. The full plan can be viewed online at: andoverma.gov/CIP2025.

Town Manager Andrew Flanagan also provided an overview of the FY2025 budget, outlining revenue and expenditure assumptions that will be relied on as the administration develops a budget proposal in the coming weeks. Consistent with Andover’s long term financial plan, funding for Andover Public Schools is anticipated to increase by 3.75 percent in FY2025, resulting in a recommended budget of $103.3 million, and funding for Town departments is expected to increase by 2.75 percent, resulting in a recommended budget of $48.48 million. 

The Town Manager’s FY2025 budget recommendation will be released in February and will undergo extensive review by the Select Board and Tri-Board before ultimately being considered by Town Meeting in April.

Other Actions 

The full meeting can be viewed online through AndoverTV.