The Andover Budget Committee has finalized its recommended 2013 budgets. The committee members worked hard to balance requests for increased funding for the School and the Town with the desire to keep the growth in property taxes within manageable limits. The budgets they are recommending are the results of these difficult compromises.
The recommended 2013 school budget is $4.50 million, up $145,827 (3.4%) from the 2012 appropriation. The recommended 2013 town budget is $1.51 million, up $122,932 (8.9%) from the 2012 net appropriation.
The budgets for the two fire departments are only slightly reduced from those of last year. Assuming that the Merrimack County charge to Andover remains the same this year as last year, the total recommended 2013 budgets will be $6.84 million, up $266,314 (4.1%) from the total 2012 net appropriations.
Estimated revenues in 2013 are expected to go down by $174,319 (primarily from the lack of unexpended surplus from the current 2012-2013 school budget), resulting in a total of $440,633 in additional taxes to be raised in 2013 compared with 2012. This increased tax burden will result in an estimated increase by 9.0% in the tax that Andover property owners will see in their tax bills in November 2013.
Voters at the annual School District Meeting on Monday, March 4, and the Town Meeting on Tuesday, March 12, will have the opportunity to review, discuss, and modify these budgets prior to voting to appropriate the funds. Each meeting takes place in the AE/MS gym and starts at 7 PM.
Andover School District Budget
The Budget Committee recommended an operating budget for the school district of $4,460,714. This budget does not provide funding of approximately $64,000 for salary and benefits for an additional fourth grade teacher requested by the School Board. The committee also recommended rejection of Warrant Article 6 that would provide $64,428 in additional funds to change the kindergarten from half-day to full-day.
The committee did recommend approval of Warrant Article 5 to ratify the negotiated teachers’ contract that provides $36,142 for salary increases for 2013. These recommendations were made in consideration of the other significant increases in both the town and school budgets. It was felt prudent to postpone staff increases and kindergarten program changes until a later year.
The recommended total school budget, including Warrant Article 5 but not Warrant Article 6, is $4,496,854, up by $145,827 (3.4%) over the 2012 appropriation. Major increases are:
- $80,000 for increased costs for Regular Education
- $36,142 contracted increase in salaries and benefits
- $32,327 increase in Special Education costs.
Offsetting these increases is a reduction in the budget for Buildings and Grounds by $10,127.
The predicted lack of any unexpended surplus funds from the current 2012-2013 school year, along with other decreases in state aid, will result in a further impact on taxes. The amount to be raised by taxes to fund the recommended school budget is predicted to be $3.51 million, up $320,216 (10.0%) from last year’s amount. This will result in an estimated increase in the tax rate by $1.21.
Andover Town Budget
The recommended 2013 budget for the Town, including warrant articles, is $1,510,986. The appropriation for 2012 was $1,388,054, net of $13,444 from a capital reserve fund. The recommended 2013 budget is up from the 2012 net appropriation by $122,932 (8.9%).
The areas seeing the largest increases in budgeted spending for 2013 are:
- Highways and Bridges Projects: $62,500
- Town Office: $14,800 for additional staff, $14,295 for computer services, and $10,000 for emergency generator
- Police: $13,610 increased benefits costs and $5,824 for an additional officer
Assuming other Town revenues remain the same for 2013 as for last year, the amount to be raised by taxes to fund the recommended Town budget is predicted be $1.02 million, up $122,612 (13.7%) from last year’s amount. This will result in an estimated increase in the tax rate by $0.46.
Andover Fire Departments
The 2013 budget recommendation for the Andover Fire District is $67,362, and for the East Andover Fire Precinct is $53,312, for a total of $120,674. This is slightly less than the total 2012 appropriation of $123,119 for the two fire departments.
Estimated Tax Rates
Prediction of the impact that these recommended budget increases will have on the property tax rate for 2013 requires estimates of the other revenues that reduce the tax burden. It appears now that these revenues will be significantly less in 2013 than they were in 2012.
In particular, there is no unexpended surplus available from the 2012 school appropriation, whereas last year there was $164,687 to offset taxes.
Based on reasonable estimates of other revenues, the total Andover tax rate for 2013 is predicted to increase by about 9.0%. The tax bill for a property in the East Andover fire district valued at $200,000 will be approximately $4,008, up $332 from the $3,676 of 2012. Similar amounts are estimated for a property in the Andover fire district.