Select Board Votes to Accept FY2027 CIP, Authorizes Bond Sale, Adopts Town Housing Production Plan

ANDOVER, MA - The Select Board met on Monday, December 8 in the Select Board Room at Town Offices, marking their final scheduled meeting of 2025. Town Manager Andrew Flanagan presented his recommended Capital Improvement Program (CIP) for FY2027–FY2031, the Board’s third review of the plan that culminated in a vote to accept the plan. The CIP proposes $50.76 million in investments for FY2027 alone, supporting projects such as water main replacements, sidewalk repairs, the purchase of a new aerial ladder truck for Fire Rescue, and continued development of the Chandler Road Recreation Area.

Following the CIP discussion, the Board voted to approve the sale of $38.56 million in general obligation bonds to fund a variety of capital needs. The borrowing includes permanent financing for the West Elementary School project, as well as new funding for infrastructure and equipment outlined in prior Town Meeting authorizations. The Town secured a strong premium and competitive interest rate due in part to its AAA bond rating.

Also during the meeting, the Merrimack Valley Planning Commission presented a draft of the Town’s Housing Production Plan, outlining strategies to guide the creation of additional housing in Andover that aligns with the Town's needs and in accordance with state guidelines. The Board voted to adopt the plan following the presentation. Finally, Town Counsel Doug Heim provided an update on the ongoing review of the Select Board’s Policy Guidelines. The presentation detailed completed work and a proposed strategy for addressing remaining policy sections; the Board voted to endorse the recommendation.

FY2027-FY2031 Capital Improvement Program
The Select Board conducted its third review of the Town Manager’s recommended Capital Improvement Program (CIP) for Fiscal Years 2027 through 2031. The proposed plan was first introduced to the Board on November 17 and reviewed again during a joint Tri-Board meeting on December 3 with the Finance Committee and School Committee. Town Manager Andrew Flanagan presented a summary of recommended capital expenditures for FY2027, which represents the first year of the five-year plan.

The CIP proposes investments in several significant Town priorities. These include $12 million to accelerate the updated water main replacement program and $5 million for the first phase of the sidewalk improvement program. A total of $5 million is proposed to support Phase 2 of the Chandler Road Recreation Area project, with $4 million from general fund borrowing and $1 million from Free Cash. The plan also recommends $2.2 million in Free Cash for the replacement of “Ladder 1,” Andover Fire Rescue’s front-line ladder truck. Additional appropriations include $1 million for Town-wide technology improvements, $250,000 for minor sidewalk repairs, and $200,000 for the purchase of solid waste and recycling toters.

Following the presentation, the Select Board voted to accept the recommended CIP. The plan is consistent with the Town’s capital planning policy, targets, and financial best practices. Notably, although the total cost of projects recommended for FY2027 is more than double that of the current year, the projected incremental tax impact is limited to $10 per average tax bill.

The CIP will ultimately be presented to Annual Town Meeting through a series of warrant articles corresponding to each funding source. The Select Board will review and vote on recommendations for each article during its annual article review process early next year.

The full recommended CIP for FY2027-FY231 can be viewed online.

Debt Issuance
The Select Board voted to approve the sale of the Town’s $38,565,000 General Obligation Municipal Purpose Loan of 2025 Bonds. The proceeds from this issuance will support a wide range of capital priorities, including permanent financing for the West Elementary School Building Project and major investments in infrastructure, facilities, and public safety equipment.

Town Manager Andrew Flanagan explained that this annual borrowing is a standard part of funding the Capital Improvement Program approved by Town Meeting. The largest share of this issuance, more than $26 million, is designated for West Elementary as the project nears closeout. Additional funds will support $8.7 million in water and sewer infrastructure, $3.8 million in general Town facility and equipment upgrades, and $631,400 in school building projects.

Thanks in part to the Town’s AAA bond rating, which was recently reaffirmed by Standard & Poor’s, the borrowing was secured at an interest rate of 3.775%. In a competitive sale, the Town also received a $1.715 million premium, which reduced the amount borrowed from $40.28 million to $38.57 million and enabled funding for additional project components without increasing the debt burden on taxpayers.

Housing Production Plan
The Select Board received a presentation from the Merrimack Valley Planning Commission (MVPC) on a proposed Housing Production Plan for the Town of Andover. An overview of the plan was presented by Ian Burns and Kayla Rennie of MVPC and Assistant Planning Director Lisa Schwarz.

The plan is intended to guide future housing policy, zoning, and development efforts in a manner that responds to the Town’s evolving demographics and housing needs. It includes a detailed assessment of current housing conditions, projected needs, and strategic recommendations to foster the development of a diverse and sustainable housing supply.

MVPC staff outlined several key findings from the plan. Among them was the fact that Andover’s population is aging significantly, with a 43% increase in residents aged 65 and older between 2010 and 2021. Meanwhile, the proportion of residents under the age of 45 has declined. Housing costs in Andover remain well above the regional average, and nearly 40% of renter households are cost-burdened, meaning that they spend more than 30% of their income on housing. These trends highlight the importance of expanding housing opportunities for seniors, low- and moderate-income families, and young professionals.

To address these challenges, the plan recommends a multi-pronged strategy that includes updates to zoning bylaws, promotion of mixed-use development in appropriate areas, the creation of local funding sources for affordable housing, and active efforts to partner with regional and state agencies. It also encourages the Town to maintain safe and healthy housing stock and to pursue strategies that reduce displacement and increase economic mobility.

Following the presentation, the Select Board voted to formally adopt the Housing Production Plan. This adoption signals the Town’s commitment to implementing the recommendations outlined in the plan and positions Andover to remain eligible for certain state-level housing incentives.

The full Housing Production Plan can be viewed online.

Select Board Policy Guidelines
Town Counsel Doug Heim provided the Select Board with an update on the Legal Department’s ongoing review of the Select Board’s Policy Guidelines, an initiative originally requested by the Board last year. The goal of this effort is to modernize the document by creating a more streamlined, user-friendly, and up-to-date policy framework that reflects current practices and legal standards.

Heim presented an overview of the process used to date, including a new organizational structure that separates policy content into two categories: a “Handbook” containing essential operational guidance and a “Library” for topic-specific policies. This structure is intended to make the document more navigable and to distinguish between regularly referenced operational policies and less frequently used items. As part of this process, several outdated or redundant policies have been retired, and others have been revised or newly drafted.

Progress has been made on multiple sections of the Handbook, including adoption of new adoption of new sections related to Board Governance, the Code of Conduct, Meeting Procedures, Board Operations, and Town Meeting-related policies. First readings have also been completed on policies related to the Board’s roles as Water and Sewer Commissioners and on Finance and Investment guidelines. The policy library has been updated to reflect changes, including the removal of a prior Small Cell Wireless policy that is no longer in use.

Looking ahead, Heim outlined a proposed timeline for completing remaining sections, which include Land Use, Alcohol Licensing, Town Manager Evaluation, and Public Records and Fees. He also identified policies that could be addressed more quickly and proposed scheduling first and second readings at upcoming meetings in January.

The Select Board voted to approve Heim’s recommendations and expressed appreciation for the Legal Department’s comprehensive and thoughtful approach to updating the policy document.

 The full meeting can be viewed online through AndoverTV. The Board is scheduled to meet next on Monday, January 5.