The amount to be raised by taxes for Andover for 2014 is $5,200,882. This is an increase over last year of $95,052 (or 1.9%). The tax bill for a property assessed at $200,000 will increase by about about $75 over last year.
A revaluation of Andover was completed this year, which resulted in a decrease in the total assessed valuation of the town by approximately 6.2%. Each property is assessed separately, so the change in valuation will vary from property to property. But on average, the property valuations are down by 6.2%.
Two Tax Bills in 2015
Based on vigorous discussion at the 2014 Town Meeting, the Selectmen have designated 2015 as the year in which Andover changes to semi-annual tax billing. So before you put away your 2014 tax bill, make a note of one-half of the total amount. Then mark your June 2015 calendar with that amount, because you’ll be receiving a 2015 tax bill in June for one-half the total of your 2014 tax bill.
Your second 2015 tax bill will arrive in late November or early December 2015, and it will reflect your total 2015 tax, minus the payment you made in June.
[For a deeper look at how the revaluation does and doesn’t impact your tax bill, see Total Town Valuation Impacts Tax Rate, Not Total Tax Bills.]
The tax rate is computed by dividing the total amount of taxes to be raised by the total town valuation. To raise the same amount of taxes when the valuation has gone down by 6.2%, the computed tax rate goes up by that same percentage, namely 6.2%.
But since the total amount of taxes to be raised is up 1.9%, the total tax rate had to go up an additional 1.9% to approximately 8%. As a result of complexities in calculating school tax rates, the tax rate for 2014 is actually up about 8.6%. However, the total amount of taxes that appears on each tax bill will, on average, be up only 1.9%.
Andover School District Taxes
The annual School District Meeting for 2014 voted a total appropriation of $4,754,553, up from the previous year by $138,587 (or 3.0%). Included were:
- $50,000 for a comprehensive building maintenance study
- $25,000 to the Special Education Trust Fund
- $25,000 to the High School Tuition Trust Fund
- $30,622 for salary increases
Offsetting this increase was the unexpended fund balance of $396,506 from the previous year. This, along with other revenues – including a State Education Grant of $788,122 – resulted in the amount to be raised by taxes for 2014-2015 to be $3,382,975 (up 3.1% over the previous year).
The School tax rate for 2014 becomes $13.61 ($2.65 for the State component and $10.96 for the Town component). This is an increase of 9.9% over the previous year. But 6.2% of this increase is accounted for by the revaluation.
Andover Town Taxes
The 2014 Andover Town Meeting voted to appropriate a total budget of $1,855,331 – up from the previous year by $287,748 (18.1%). The major increase was to add $200,000 to the Bridge Capital Reserve Fund to build up funds for eventual replacement of the Lawrence Street bridge.
After accounting for offsetting revenues, and after the application of $300,000 from the unexpended fund balance, the amount to be raised by taxes becomes $981,822 – up from last year by $32,012 (3.4%).
The Town tax rate for 2014 becomes $3.92, up 10.4% over the previous year. Again, remember that 6.2% of this change is a result of the downward revaluation of the town.
Fire Department Taxes
The total amount to be raised by taxes for the two Andover fire districts for 2014 is $121,540 – nearly identical to the amount raised for 2013. The tax rates for 2014 are $0.65 for Andover properties and $0.38 for East Andover properties, each up over last year due to the downward revaluation of the tax base.
County Taxes
The bill to Andover from Merrimack County for our share of its 2014 budget is $714,545. This is down from 2013 by $38,262 (5.1%). This decrease helps offset the increases in tax requirements for the Andover School District and the Town.
