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Published December 23, 2025 at 7:00 PM

Updated January 23, 2026

Site work for a water / sewer project in Andover, Massachusetts. Completed plans call for site work for a water / sewer project.

https://andovermanews.com/andover-kicks-off-fy27-budget-process-with-50-7m-capital-plan/ ANDOVER, MA — Members of the Select Board, School Committee, and Finance Committee gathered Wednesday for the annual Tri-Board meeting, marking the public start of Andover’s FY27 budget cycle. Town Manager Andrew Flanagan outlined the town’s financial outlook, highlighted major capital priorities, and presented a five-year spending plan that he said remains balanced despite rising costs in several areas. The proposed FY27–31 Capital Improvement Program totals $50.7 million, driven largely by a renewed effort to rebuild Andover’s sidewalk network and to overhaul water infrastructure. Flanagan emphasized that the plan continues to fall within the town’s 7 to 7.5 percent capital target, meaning residents would not see unexpected increases in the annual tax burden associated with routine capital spending. A centerpiece of the proposal is a two-year, $10 million investment to complete the townwide sidewalk master plan released in 2023. The FY27 request includes $5 million, with another $5 million expected next year. At the same time, Andover would continue its long-term initiative to replace unlined cast-iron water mains, dedicating $12 million per year through the water enterprise fund. Town officials said the work could replace all remaining problematic sections of the system within the next decade, with some of the worst areas addressed in the first few years. Rockland Trust The plan also includes $5 million for the second phase of the Chandler Road recreation area, although town leaders said the project will only advance if community consensus emerges on the final design. “If we don’t feel good about where the community stands, we will pull it,” Flanagan told board members, noting the strong demand for additional field space in town. Other major items include $2.2 million to replace Ladder 1, Andover Fire Rescue’s frontline ladder truck. Free cash would cover the full cost, avoiding the need for new borrowing. The town would also continue its annual $1 million technology program, upgrade building systems at several schools and municipal facilities, and fund design work for future improvements at Rec Park and Old Town Hall. Board members questioned how road, sidewalk, and water work will be coordinated to minimize construction impacts, with Finance Committee Chair Paula Colby-Clements noting that overlapping projects could strain neighborhood patience. Flanagan said the town will evaluate its “tolerance” for concurrent work throughout the year and plans a dedicated presentation on long-term infrastructure sequencing. The town enters the FY27 budget cycle with a certified free cash balance of about $26 million, allowing 22 percent to be dedicated to capital projects. Several board members supported revisiting Andover’s reserve policies given the consistently high balances in recent years. On the operating side, the budget remains balanced under current projections. The town is planning increases of 2.75 percent for municipal departments and 3.75 percent for the school district, in line with the town’s long-range plan. Rising health insurance costs continue to be a major pressure point, along with pension obligations and solid-waste expenses. Flanagan said the full FY27 budget will be released in February, with capital hearings continuing through December and a final vote expected at Annual Town Meeting in April. ------------------------------------- Grading & Drainage Improvements Bingham Way - 667-2 Fould's Terrace - 667-3 Bingham Way (667-2) 2-16 Bingham Way, North Andover, MA 01845 Fould's Terrace (667-3) Fould's Terrace, North Andover, MA 01845 Replacement of existing drainage infrastructure, re-grading areas around existing buildings and basement waterproofing on Foulds Terrace and Bingham Way as well as other work as as shown on drawings. Question Deadline 12/10/2025 at 11:00 AM ET All bidding Requests for Information (RFIs) shall be submitted online

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Water / Sewer

$150,000.00

Public - City

Site Work

6

9

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