The amounts to be raised by taxes for Andover for 2016 add up to $5,475,266. This is an increase over last year of $381,301 (7.5%). A small increase in the total town valuation for 2016 helped hold the increase in the tax rate to just under 7%. The 2016 tax bill for a property valued at $200,000 increased by about $275.
The total Andover tax burden over the five years prior to 2016 had remained almost flat, fluctuating up and down around the $5,000,000 mark. The sudden rise this year is the first big increase since 2011, when the total tax burden jumped from about $4,400,000 to almost $5,000,000. The reasons for this year’s big increase are cited below.
Andover School Taxes
The 2016 annual School District Meeting voted a total appropriation of $4,900,864, up from the previous year by $126,399 (2.6%). The increase was driven by increased busing costs, a new teachers’ contract, and increased Special Education staff.
An operating budget of $4,862,300 was approved. In addition, $25,000 was added to the Special Education Trust Fund, bringing it to $100,000 plus interest. This continued a plan of adding $25,000 to this fund each year to provide for unanticipated expenses for Special Education that are impossible to predict or budget for.
Another $10,000 was added to the High School Tuition Trust Fund, bringing it to $60,000 plus interest. This fund provides a source of funding for unexpected high school enrollments.
Finally, $3,564 was approved for salaries, part of implementing this year’s new teachers’ contract.
Offsetting these appropriations was an unexpended fund balance of $333,367 at the end of the 2015-2016 school year, down 27.5% from the 2014-2015 school year. The 2014-2015 unexpended fund balance was unusually high, due to a “premium holiday” for health and workers compensation insurance and some savings in salaries and heating oil. The 2015-2016 figure is more typical (but still about double what the SAU would like to see unexpended at the end of a school year).
The State Education Grant this year is $858,469, up about 3.4%. After accounting for other revenues, the amount to be raised by taxes for 2016 is $3,495,530, up 7.9% over the previous year.
The School tax rate for 2016 becomes $13.94 ($2.33 for the State component and $11.61 for the Town component). This is an increase of 7.3% over the previous year.
Andover Town Taxes
The 2016 Andover Town Meeting voted to appropriate an operating budget of $1,612,904, up from the previous year by $134,256 or 9.1%. The meeting also approved $30,000 to outfit a donated dump truck for Highway Department use. Replacement of the Town Hall roof ($25,000) and acquiring a special-purpose forest fire truck ($48,847) were also approved by the voters. Other warrant articles (including $150,000 for road projects, which was intentionally omitted from the previous year’s budget) brought the total appropriation to $1,999,727, up from the previous year by $349,558 (21.2%).
The Select Board voted to use $150,000 of accumulated fund surplus to offset 2016 taxes. After taking account of other revenues, the amount to be raised by taxes becomes $1,167,133, up from last year by $145,304 (14.2%).
The Town tax rate for 2016 is $4.61, up 13.3% over the previous year.
Fire Department Taxes
The total amount to be raised by taxes for the two Andover districts for 2016 is $125,803, up less than 2% over the amount raised for 2015. The tax rates for 2016 are $0.68 for Andover properties and $0.37 for East Andover properties.
County Taxes
The bill to Andover from Merrimack County for our share of the county’s 2016 budget is $686,800. This is down from 2015 by $22,354 (-3.2%). The county tax rate for this year is $2.71 (-3.9%).
As usual, this article wouldn’t have been possible without Ed Hiller’s invaluable insights and rigorous organizational skills that he provides so generously as a member of the Andover Budget Committee. Thanks, Ed!