The proposed 2015 budgets for Andover schools, town government, and fire departments total $6,652,036, down over $60,000 (or 0.9%) from the 2014 total.

These budgets will result in lower tax bills this year. The State Educational Grant is increased, which will reduce the School District tax burden. Assuming no changes in other offsetting revenues (including use of previous year surplus), and assuming that the County charge doesn’t change, the estimated tax bill for a property assessed at $200,000 for 2015 should go down by about $92.

Andover School Budget

The Budget Committee recommends a total budget, including warrant articles, for the Andover School District for fiscal year 2015-2016 of $4,774,465, up $19,912 (0.4%) over the current year’s budget. This includes an operating budget of $4,729,465 plus warrant articles for an additional $45,000.

A significant increase in the operating budget is for transportation. The first year of the new five-year bus contract is higher than the last year of the previous contract by $94,523 (an increase of 26.5%). The School Board negotiated vigorously to avoid even further increases.

Offsetting some of this increase is a decrease in high school tuition of $34,200, resulting from a predicted decrease in the number of students Andover will send to MVHS. Salary expenses at AE/MS are reduced by $13,153 as a result of teaching staff changes.

And last year’s operating budget included a one-time expense of $50,000 to generate a long-term building and facility maintenance plan, which is not present in this year’s budget.

In view of the unprecedented increase in transportation costs in the new five-year contract, Article 7 on the Andover School District warrant proposes appropriation of up to $10,000 to conduct a study of alternate methods for providing school transportation, including studying the possibility of operating our own bus fleet. The Budget Committee recommends passage of this warrant article.

Article 5 on the school warrant proposes adding $25,000 to the High School Tuition Trust Fund, bringing that fund up to $75,000. Article 6 proposes adding $10,000 to the Special Education Trust Fund, bringing that fund up to the planned total of $100,000.

Last year $25,000 was added to each of these funds. So the amount added to these two “rainy day funds” in this year’s budget is down by $15,000 over last year. The Budget Committee recommends passage of both articles.

The recommended budget for 2015-2016 is up $19,912 over last year’s appropriations. However, the New Hampshire Department of Education is increasing the Education Grant to Andover for 2015-2016 by $57,010, so the amount to be raised by taxes should go down by $37,098.

Any changes in revenues, including changes in the amount of available unexpended surplus (last year’s amount was $396,506), will also have a direct effect on the tax bills.

Andover Town Budget

The Selectmen provided details of their requested budget at the Town Budget Public Hearing on January 21. At the time of publication of this article, the Budget Committee had not finalized its recommendation.

The Selectmen’s 2015 budget is for a total appropriation of $1,749,159. This includes an operating budget of $1,469,980 plus warrant articles of $279,179. This is a decrease over the 2014 net appropriation of $1,830,331 by $81,172. This will reduce the Town tax burden by approximately 8.2%. Any change in revenues would have a direct impact on the tax rate, including any change in the use of previous year surplus. (Last year, $300,000 was used to reduce tax bills.)

The Selectmen propose to establish a procedure for accumulating the necessary funds for rebuilding the Lawrence Street Bridge. The Town’s portion of this expense is estimated to be $1.2 million, with an estimated project date of 2022. A Capital Reserve Fund will be established specifically for the Lawrence Street Bridge project, and $200,000 will be transferred into it from the Bridge Rehabilitation Capital Reserve Fund. An additional $100,000 will be added to this fund this year. In each following year, the Selectmen plan to ask Town Meeting to add another $100,000 to the fund.

The Selectmen also propose to change the way routine highway maintenance is provided. If approved by Town Meeting, these functions would be performed in-house by Town employees, rather than being contracted out to private individuals. The Town will lease a one-ton dump truck and contract for its maintenance. Auxiliary equipment and tools will also be purchased. Two warrant articles will provide the required appropriations.

Significant savings are predicted from this change. The one-time start-up cost for equipment is estimated to be $51,700. Annual operating cost savings are estimated to be approximately $14,500. This indicates a pay-back time of 2.8 years.

To reduce the initial impact of this Highway Department change and to offset some of the increases in operating costs, the usual budgeting of $150,000 for Special Road Projects will be omitted this year.

A warrant article is proposed that will establish a Technology Expendable Trust Fund for purchase and maintenance of computers and related services and appropriate $18,000 for initial funding.

Other warrant articles will add to established funds:

• Add $15,400 to the Revaluation Capital Reserve Fund, bringing the amount in this fund to $81,000.
• Add $10,000 to the Transfer Station Capital Reserve Fund, bringing the amount in this fund to $80,000.
• Add $25,000 to the Ambulance Capital Reserve Fund, bringing the amount in this fund to $100,000.
• Add $10,000 to the Town Buildings Expendable Trust Fund, bringing the amount in this fund to $16,000.
• Add $3,000 to the Fire Emergency Labor Expendable Trust fund, bringing the amount in this fund to $5,000.
• Add $7,500 to the Police Cruiser Capital Reserve Fund, bringing the amount in this fund to $15,500.

Andover Fire Departments

The recommended 2015 budget (net of pass-though items) for the Andover Fire District is $70,512. The recommendation for the East Andover Fire Precinct is $57,900. The total for the two departments is $128,412, up $1,000 or 0.8% over the appropriations for 2014.