Select Board Begins Annual Tax Classification Process, Engages National Grid on Solutions to Frequent Power Outages

ANDOVER, MA - The Select Board met on Wednesday, November 12 in the Select Board Room at Town Offices. The meeting covered several major items, beginning with the Board’s annual tax classification hearing for FY2026, during which updated assessor data and several shift factor scenarios were reviewed. The Board also received a presentation from National Grid on electric service reliability in Andover, including an overview of system performance and ongoing infrastructure improvements intended to reduce the frequency and duration of outages.

Additionally, the Board reviewed and voted on the means tested senior property tax exemption for FY2026 and continued its ongoing work on the comprehensive review of the Long Range Financial Plan. Earlier in the meeting, Memorial Hall Library Director Esme Green provided an update on library operations and current initiatives, highlighting recent activity levels, community engagement efforts, and priorities for the year ahead.

Tax Classification Hearing for FY2026
The Select Board conducted its annual public hearing on tax classification and reviewed factors that determine the distribution of the property tax levy among residential, commercial, industrial, and personal property classes for FY2026. Chief Assessor Tristan Hoare presented updated assessment data certified by the Department of Revenue and outlined options for the Board’s consideration.

According to Hoare, the total assessed value of all property in Andover for FY2026 is $13.75 billion, an increase of 4.3% over last year. Residential property accounts for $11.32 billion, up 4.2%, while commercial property increased 2.4% to $863.5 million. Industrial property saw the largest growth, rising 7.7% to $1.18 billion, while personal property declined slightly by 0.1%. The average single-family home assessment increased to $1,072,150.

Andover maintains a split tax rate, meaning that commercial and industrial taxpayers pay a higher rate than residential taxpayers. The Board reviewed estimated tax rates under several shift factor scenarios. A shift of “168” would result in the most uniform tax increases across property classes, setting the residential tax rate at $12.31 per $1,000 of assessed value and the commercial/industrial rate at $24.18 per $1,000. Under this scenario, the average single-family tax bill would increase by 2.7%, while commercial and industrial bills would rise by 2.7% and 7.7%, respectively.

The Board also examined options to retain the FY2025 levy shares with a shift factor of “166.5,” which would set the residential rate at $12.36 and the commercial, industrial, and personal property (CIP) rate at $23.97, resulting in a 3.1% increase for the average single-family bill. A third option, with a shift factor of “167,” would set the residential rate at $12.34 and the CIP rate at $24.04, producing a 3.0% increase for single-family homes.

The Board will vote on the residential factor and related exemptions at its next meeting.

Discussion with National Grid on Power Reliability
The Select Board received a presentation from representatives of National Grid following the Board’s request that the utility attend a meeting to address concerns about frequent power outages in Andover. The discussion focused on the structure of the town’s electric distribution system, reliability metrics, and steps National Grid is taking to improve service.

National Grid reported that Andover’s electric system serves approximately 14,625 customers through five substations, 33 feeders, and approximately 356 miles of distribution lines, including 198 miles of overhead and 157 miles underground. The company explained how outages are defined and measured, noting that reliability is tracked using industry-standard indices such as SAIDI (average outage duration) and SAIFI (average outage frequency). For 2024, Andover’s estimated SAIFI was 1.425, and its SAIDI was 270.6 minutes. Both are higher than system-wide averages and reflect the impact of several significant outages.

The presentation outlined ongoing and planned reliability initiatives, including vegetation management programs, installation of fault detection and automated restoration technologies such as FLISR (Fault Location Isolation and Service Restoration), and targeted capital projects. In Andover, National Grid has pruned more than 150 miles of lines and removed over 300 hazard trees in the past two years. Additional improvements include installing cutout-mounted reclosers, replacing aging underground cables, and implementing resiliency measures such as spacer cables to reduce tree-related outages. A major capital project under evaluation would retire the Andover 3 substation and either rebuild it with upgraded feeders or install new feeders from the Burtt Road substation.

Following the presentation, the Select Board requested that National Grid return with a detailed plan outlining system improvements that will reduce the frequency and duration of outages. Chair Alex Vispoli asked that this plan be provided to the Board by the end of the year.

Seniors Means Tested Property Tax Exemption
The Select Board voted to set the means tested senior tax exemption rate for FY2026. This program provides a tax exemption to certain residents who have owned and occupied their home for at least the last 10 years, were 65 years of age as of last December, and received the senior circuit breaker tax credit when they filed their previous year’s Massachusetts income tax return.

Andover approved a home rule petition establishing a means tested senior tax exemption at Annual Town Meeting in 2018. The measure went into effect in FY2020 and has been reauthorized through FY2027. The home rule petition allows the rate of the exemption to be set at 50 to 100 percent of the amount of the circuit breaker income tax credit received by eligible applicants in the previous year.

The Select Board voted to set the means tested senior tax exemption rate at 100 percent of the circuit breaker tax credit, consistent with the rate used each year since the program was adopted. The maximum circuit breaker credit for the 2024 tax year was $2,730.

The deadline to apply for this exemption was September 2025. The Assessor’s Office conducts extensive outreach to ensure that potentially eligible residents are aware of the program.

A total of 96 applicants qualified for the exemption for FY2026. Applicants earned a total of $199,938 in circuit breaker tax credits, with an average credit of $2,082.68. The cost to fund this exemption is estimated at $21.44 per Andover taxpayer, based on the average residential tax bill and assuming a 100 percent exemption.

Long Range Financial Plan Review
The Select Board held its third workshop on the Long Range Financial Plan (LRFP) as part of the comprehensive review initiated by Town Manager Andrew Flanagan earlier this summer. The LRFP, first introduced in 2016, serves as the foundation for the Town’s financial planning activities and provides a multi-year outlook of major revenues and expenditures. It is a dynamic, public-facing model designed to identify potential budget challenges, evaluate strategies to achieve long-term fiscal stability, and align the Town’s financial policies with the priorities of the Select Board and other governing bodies. The review currently underway is intended to update the plan so that it reflects present conditions and positions the Town to meet community priorities in the years ahead.

Since July, the Town has undertaken a comprehensive process to review all major components of the LRFP. This work has involved extensive engagement from the Select Board, School Committee, and Finance Committee, each of which has now participated in two workshops. A public forum was held on October 23 to provide residents an additional opportunity to learn about the process and offer feedback. Phase 3 of the review, which will include an assessment of the Town's financial policies, is expected to begin in November. The Capital Improvement Program was released in November 14, and a Tri Board meeting will be held on December 3.

The presentation reviewed several revenue assumptions that will shape the Town’s long-term financial outlook. New growth, a standing category of revenue, has been projected using an adjusted 10-year average and is now proposed to be reduced by 10 percent in preliminary estimates for FY2027. Excess levy capacity is projected at approximately $307,500, consistent with the Select Board’s request that the Town maintaining roughly $300,000 that increases by 2.5 percent annually. The Board also reviewed trends in permit revenue, which is currently running ahead of projections and often serves as an indicator of future growth.

The workshop also focused on projected expenditures, including capital spending, debt service, OPEB and pension obligations, health insurance, and the operating budgets for Town and School departments. Capital spending within the levy limit is expected to total approximately 7 to 7.5 percent of the Town and School operating budgets. The Town anticipates including a recommendation for a $10 million borrowing authorization to implement the Sidewalk Master Plan. Significant increases in health insurance costs, estimated at 10 to 14 percent, represent a substantial challenge heading into FY2027 due to rising pharmaceutical costs, specialty treatments, and changes in federal policy.

The Board reviewed updated projections for long-term liabilities, including OPEB and pension obligations. The Town expects to increase its OPEB appropriation by 7 to 9 percent for FY2027, consistent with its long-standing practice of redirecting savings from OPEB reforms into the trust. Pension assessments are projected to exceed prior estimates for FY2027 through FY2029, although updated actuarial projections indicate that the liability is now expected to be fully funded by 2030 rather than 2032. The LRFP will next be discussed during a Tri Board meeting of the Select Board, Finance Committee, and School Committee on December 3, which will mark the final phase of the review process. The updated plan will be incorporated into the FY2027 budget and financial plan that will be released in February.

Other Actions 

• Memorial Hall Library Director Esmé Green provided an update on the library. Her presentation highlighted activity levels over the past year, including more than 217,000 visitors, over 618,000 circulation transactions, and continued growth in library card registrations. She also discussed current priorities such as expanded community outreach efforts, space planning to address needs identified in the library’s strategic plan, and ongoing work to further integrate the facility with other improvements around Downtown Andover. 

The full meeting can be viewed online through AndoverTV. The Board is scheduled to meet next on Monday, November 17 at 6:30 PM.