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Andover council votes 6-0 to adopt resolution to exceed revenue-neutral rate, advances 2026 budget process
Summary
After presentations from the city administrator and finance director, the council adopted a resolution to levy property tax revenue above the revenue-neutral rate and heard details of the proposed 2026 budget, including a plan to return the mill rate to 42.981 and a $20 million wastewater treatment expansion proposal.
The Andover City Council adopted a resolution to levy property taxes exceeding the revenue-neutral rate by a 6-0 roll-call vote during an RNR public hearing, advancing the city’s 2026 budget process. The council held the hearing after presentations from City Administrator Jennifer McCausland and Finance Director Matt Kane.
McCausland told the council the draft 2026 budget returns the city’s proposed mill rate to 42.981 — the same level as 2024 — after staff removed about $366,000 in requested items to close a roughly $1.5 million shortfall. “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. She also said the governing team delayed or reduced items across departments, delayed a firefighter start date to April 1 rather than Jan. 1, and limited merit increases to preserve market adjustments while lowering overall cost impacts.
Kane outlined the technical calculation and context for the revenue-neutral rate (the statute-driven “truth in taxation” framework), showed assessed‑valuation growth and a history of mill rates, and described major planned capital spending. He noted the largest near-term capital item is a planned wastewater treatment-plant expansion (budgeted $20 million for 2026) and that the city expects nearly $21 million in total capital investments in 2026 across funds. Kane also highlighted savings realized from the city’s self‑insured health plan, which he said yielded nearly $1,000,000 of budgeted savings.
No members of the public spoke during the RNR hearing. After the public‑hearing portion, Council member (speaker 4) moved to adopt the resolution to exceed the revenue-neutral rate; the motion was seconded and the city took a roll‑call vote. Dana Engstrom, city clerk, read the roll; the motion carried, recorded as unanimous Yea votes by the attending council members.
Council and staff emphasized the vote does not finalize the 2026 budget. McCausland and Kane said the governing body will take final action on the full 2026 budget at the council meeting scheduled for Sept. 9, giving staff time to incorporate public feedback and finalize technical numbers. The staff presentation noted that TIF (tax increment financing) revenues related to the Heritage TIF district are accounted for separately and that the county’s certified mill rate could differ slightly when valuations are finalized in November.
