Select Board Receives Overview of Capital Improvement Program for FY2027-2031, Completes Annual Tax Classification Process, and Approves LIP Application for Proposed Development on Andover Street

ANDOVER, MA - The Select Board met on Monday, November 17 in the Select Board Room at Town Offices. During the meeting, Town Manager Andrew Flanagan introduced his recommended Capital Improvement Program (CIP) for FY2027-FY2031, marking a significant milestone in the annual budget development process. The CIP proposes the investment of $50.76 million to support a host of priorities including sidewalk improvements, the acceleration of the water main replacement program, construction of the Chandler Road Recreation Area, and the purchase of a new Fire Rescue ladder truck. Also in the area of Town finance, the Board continued its annual tax classification process and voted to adopt a shift factor that maintains Andover’s split tax rate structure between residential properties and commercial and industrial properties. 

A significant portion of the meeting was devoted to the Board’s continued review of a 40-unit housing development on Andover Street, known as Trailside Andover, that is being proposed under the state’s Local Initiative Program. Considering the application in a second reading, the Board discussed several concerns related to the project, including traffic and environmental impacts. After extensive discussion, the Board voted 3-2 to approve the application with conditions that will require the applicant to support traffic mitigation measures and to fund a traffic corridor study in the Andover Street/Dascomb Road area. The Board also received a presentation from Town staff regarding the potential immediate closing of Pearson Street in response to a recent accident involving a motor vehicle being struck by a train after entering the railroad crossing at Essex Street from Pearson Street. 

Introduction of FY2027-FY2031 Capital Improvement Program
Town Manager Andrew Flanagan released the recommended Capital Improvement Program (CIP) for FY2027–FY2031 on Friday, November 14, and provided a comprehensive overview of the plan during Monday’s meeting. The CIP outlines a five-year strategy for funding major capital projects and maintaining critical infrastructure while adhering to the Town’s financial policies and sustainability targets.

The CIP recommends $50,758,394 in investments for FY2027, funded through a combination of general fund revenue, borrowing, “free cash,” special dedicated funds, and water and sewer enterprise funds. Highlights of the plan include Phase 1 of the Town-wide sidewalk program ($5 million), Year 1 of the updated water main replacement program ($12 million), and $5 million for construction of Phase 2 of the Chandler Road Recreation Area, contingent on community input and design development. Other notable recommendations include $2.2 million for replacement of Andover Fire Rescue’s “Ladder 1” truck, $1 million for technology improvements, and $200,000 for trash and recycling toters.

Flanagan emphasized that the CIP meets the Town’s target of allocating 7–7.5% of the combined Town and School operating budgets, while maintaining debt and reserve benchmarks. He also noted that the plan includes significant investment in water and sewer infrastructure, with $26.3 million allocated to enterprise fund projects.

The Town Manager outlined the review process for the CIP in the months ahead, which includes presentations to the Finance Committee on November 19, a Tri-Board meeting on December 3, and a Select Board vote on whether to accept the plan on December 7. Additional review will occur during warrant article meetings in February and March, as well as at the annual budget workshop in March.

Flanagan thanked and acknowledged Deputy Town Manager for Administration & Finance Alex Magee, Director of Budget & Capital Management Hayley Green, and Administration & Finance Analyst Sarah Carroll for their contributions to the development and production of the CIP.

FY2026 Tax Classification Process
The Select Board revisited the annual tax classification process in a second reading and voted to adopt a shift factor of “168” for FY2026. This option provides the most uniform tax increases across property classifications, as outlined in the presentation by Chief Assessor Tristan Hoare.

Under the adopted shift, the residential tax rate will be $12.31 per $1,000 of assessed value, while the commercial, industrial, and personal property  rate will be $24.18 per $1,000. Based on the updated assessments certified by the Department of Revenue, the average single-family home assessment increased to $1,072,150, resulting in an average estimated tax bill of $13,198, a 2.7% increase over last year. Commercial and industrial properties will see increases of approximately 2.7% and 7.7%, respectively.

The Board’s decision follows a review of several scenarios presented during the November 13 meeting, which included options to retain prior-year levy shares or adjust the shift factor to balance impacts across classes. The adopted shift maintains Andover’s split tax rate structure, ensuring that commercial and industrial taxpayers continue to bear a greater share of the overall tax levy.

Trailside Andover Local Initiative Program
The Select Board continued its review of a Local Initiative Program (LIP) application for a proposed housing development at 84–88 Andover Street, referred to as Trailside Andover. The project, presented by DREAM Development and Hearthstone Realty Corporation, would create 40 units of housing, including 10 affordable units, on a 2.52-acre site near the intersection of Andover Street and Dascomb Road. While the development will not have an age restriction, the units are “age targeted,” meaning that they are intended to provide opportunities for older residents to downsize without leaving Andover. The proposal includes indoor and surface parking, outdoor gathering spaces, and other amenity spaces. 

A LIP is a state-sanctioned program under Chapter 40B that allows developers to build housing developments not otherwise permitted under local zoning, provided that a percentage of units serve households earning below 80% of the Area Median Income and that developer profits are capped at 20% of total costs. The process involves three levels of review: first, the Select Board determines whether the Town wishes to partner with the developer to advance the project; second, the Town and developer apply to the Executive Office of Housing and Livable Communities (EOHLC) for project eligibility; and third, if approved, the developer applies for a Comprehensive Permit with the Zoning Board of Appeals (ZBA), which undertakes a formal review.

After extensive discussion, the Select Board voted 3–2 in support of the LIP application. The Board added two conditions to its approval in response to concerns regarding the project’s potential traffic impacts. First, the developer must fund a traffic impact peer review study in connection with the Zoning Board of Appeals’ consideration of a Comprehensive Permit application and fund any traffic mitigation measures recommended by that review should a permit be issued. Second, approval is conditioned upon the applicant fully funding a traffic corridor study for Andover Street/Dascomb Road if the applicant receives a Comprehensive Permit and chooses to move forward with the project.

Recommendation on Pearson Street
Deputy Town Manager Mike Lindstrom presented an overview of the Town’s evaluation of whether Pearson Street should be closed following an October 9 incident in which a vehicle was struck at the Essex Street railroad crossing after approaching from Main Street via Pearson Street. The prospect of closing the roadway was reviewed by the Town’s internal traffic safety working group, which includes representatives from the Town Manager’s Office, Police, Fire Rescue, Public Works, and Planning.  The review considered regulatory requirements, logistical challenges, and long-term planning implications.

Lindstrom explained that any closure would require approval from the MBTA as Pearson Street lies within the MBTA’s Zone of Influence. Closing the roadway could also trigger additional railroad signal modifications and safety studies. The absence of a safe or legal turnaround for vehicles traveling down Pearson Street, impacts to residents and businesses, and the need to maintain emergency access were cited as significant operational concerns. 

It was noted that the upcoming Old Town Yard redevelopment includes plans for a circumferential roadway that will provide a safe turnaround and improve traffic circulation in the area. Until that infrastructure is in place, closure is not recommended. Lindstrom stated that closing Pearson Street now would create new hazards and operational challenges, despite the Town’s conceptual support for closure in the future. 

Other Actions 

• During the Town Manager Report, Town Manager Andrew Flanagan announced that S&P Global Ratings has assigned a ‘AAA’ long-term rating to the Town’s $40.3 million Series 2025 general obligation bonds and reaffirmed Andover’s existing ‘AAA’ rating with a stable outlook. S&P cited the Town’s strong economic base, prudent budgeting, improved pension funding, and stable reserves. The report also noted that Andover’s credit profile is resilient enough to be rated above the sovereign in a stress scenario, reflecting disciplined financial management supported by the Select Board and Town departments.

The full meeting can be viewed online through AndoverTV. The Board is scheduled to meet next on Friday, November 21 at 4:00 PM to consider the appointment of a Town Accountant.