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Andover officials move to exceed revenue-neutral rate; 2026 budget presented for public comment
Summary
City staff presented the proposed 2026 budget and the council adopted a resolution to exceed the revenue-neutral rate, voting 6-0. Staff said work to close a $1.5 million gap included delaying purchases, revising pay-plans and drawing nearly $1 million in savings from a self-funded health plan.
The Andover City Council adopted a resolution to levy property taxes above the revenue-neutral rate on a 6-0 roll-call vote and opened a public hearing on the city’s proposed 2026 budget.
City Administrator Jennifer McCausland presented the budget process, saying the city intends to return the mill rate to 42.981 — the same mill rate used in 2024 — after staff removed nearly $366,000 of requested items and made changes elsewhere to close about a $1.5 million gap. “The promise I made to you a little less than a year ago was that we would get back to the 42.981 mill rate for 2026,” McCausland said.
The budget presentation explained choices staff and department heads made to reduce spending. Examples included delaying equipment purchases for parks, trimming travel and conference expenses, delaying one firefighter’s start date from January to April and tightening how the new salary administration plan is applied. Finance Director Matt Cain explained the technical steps and timelines for complying with state truth-in-taxation requirements and for certifying the final budget to the county.
McCausland and other staff highlighted nearly $1 million in savings achieved since switching to a self-funded employee health plan in mid-2023. HR Director Chastity Page and staff were credited for employee efforts to use rebates and discounts that reduced health-plan costs. City staff said those savings were used to reduce the budgeted amount for benefits in 2026 with confidence because of two years of plan data.
The council took the required step under state statute to notify the public and to hold a hearing about exceeding the revenue-neutral rate. The governing body adopted the resolution to exceed the rate in order to account for growth-driven expenditures — new infrastructure, personnel and planned capital projects such as wastewater, streets, parks and a new fire station — and to comply with statutory notice and hearing requirements. The formal vote to adopt the resolution passed 6-0 (Barry, Hamilton, Henry, O'Kady, Warrington, Weimer voting yes).
McCausland said the governing body will not adopt the 2026 budget tonight; staff will return on Sept. 9 for final adoption after considering public feedback received during the hearing. She reminded residents that the city’s budget covers only city services and not county, school or other taxing jurisdictions shown on property notices.
Members of the public did not approach the podium during the revenue-neutral-rate hearing. The public hearing on the 2026 budget that followed was also opened and no public comments were offered before the council closed the hearing.
The council and staff emphasized the scale of planned capital work: staff presented a capital improvement program that includes a planned wastewater treatment plant expansion and other investments that together account for most of the proposed increase in total expenditures for 2026. McCausland told the council that staff trimmed discretionary items and sought department trade-offs to protect services that affect residents.
The council’s final adoption of the budget is scheduled for the Sept. 9 meeting, at which time the city will also confirm the exact mill rate for 2026 and finalize appropriation amounts.
