On February 6, Town Manager Andrew Flanagan released the recommended Budget & Financial Plan for FY2027. The proposed operating and capital budget totals $265,923,119, an increase of $13,096,655, or 5.18 percent, over the current fiscal year.
The release of the Town Manager’s proposed budget marks the culmination of a collaborative, multi-month process during which all departments provided input on anticipated personnel and operating expenses for the coming fiscal year.
According to the Town Manager, the budget reflects a concerted approach to balancing fiscal stability and delivering quality services, while making targeted investments to meet emerging priorities. “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,” Flanagan wrote in the budget’s transmittal letter.
The recommended budget will undergo thorough review before it is considered for adoption at Annual Town Meeting. It was presented to the Select Board on February 9, and the Finance Committee on February 18. Both boards will have two more opportunities to review the proposal before taking a position on the budget article (Article 4) that will appear on the Town Meeting warrant, including the annual joint Saturday budget meeting scheduled for Saturday, March 14.
The full budget recommendation can be viewed online at: andoverma.gov/fy2027budget
Key Figures
Expenses
Total Budget: $265,923,119 (including Water & Sewer Enterprise Funds & Capital Improvement Program)
School Budget: $110,578,564
Town Operating Budget: $46,603,587 (excluding Water & Sewer Enterprise Funds)
Budget Highlights
Overall budget increase: The total budget increase, inclusive of the Water & Sewer Enterprise Funds, is 5.18 percent. The Town’s operating budget will increase by 2.75 percent, and the School Department’s operating budget will increase by 3.75 percent.
Expanded Fire Rescue Capacity: The budget provides funding to complete a three-year effort to place Andover Fire Rescue’s third ambulance in service 100 percent of the time. This final phase adds two firefighter positions to build on the six added in recent years, as well as a new Assistant Fire Chief position to oversee emergency medical services, training, fire prevention and to provide administrative support to the overall management of the department. This position is common in comparable communities with populations similar to Andover. Revenues from ambulance billing are expected to offset approximately 50 percent of the total cost of these additions.
Transportation Program Manager: The budget funds a dedicated Transportation Program Manager to evaluate roadway improvements, enhance traffic patterns, improve safety, and ensure streets are designed and maintained for all users. The position advances a growing priority of the community, will be funded through revenues from downtown parking and is expected to reduce the Town’s reliance on outsourced engineering services.
Capital Project Manager: The budget includes a Capital Project Manager within the Department of Public Works to support the coordination and execution of complex infrastructure projects as the Town prepares to accelerate capital water main projects in the coming years. This position is funded as part of the approved Water Rate Plan.
Civic Media: The budget outlines the Town’s plan for the Innovation & Technology Department to absorb the broadcasting and civic engagement work currently handled by AndoverTV by establishing a new Civic Media Team under the Chief Innovation Officer. The team will work closely with the Chief Communications Officer to strengthen public-facing communications and improve how residents stay informed and connected to local government. This operation will be funded by PEG franchise funding and will have no impact on the General Fund.
Employee health insurance: The budget reflects a 12 percent increase in health insurance costs for FY2027, which is the result of national healthcare cost inflation trends, and higher utilization of specialty pharmaceuticals, among other factors.
Capital Improvement Program: The Town Manager’s recommended CIP for FY2027 totals $50,758,394, funded through general fund revenue, free cash, general fund borrowing, special dedicated funds, and water and sewer enterprise funds. The full CIP is available at andoverma.gov/FY2027CIP.
Projected tax impact: Based on current projections, the recommended budget and capital plan is expected to result in an average single-family tax bill increase of approximately 4.39 percent for FY2027. Approximately 0.73% of the total increase is attributable to the final debt issuance for the new West Elementary & Shawsheen Preschool (0.65%) and the continuation of the senior tax exemption program (0.08%). This figure is consistent with the Town’s long-range financial plan and is below the 5-year average single-family tax bill increase.
Click here to view the full Recommended Fiscal Year 2027 Budget & Financial Plan.