Andover officials warn proposed state cap on municipal spending could hobble services
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Summary
City administrators and council members told the Andover City Council that House Bill 2745’s proposed 3% cap on municipal spending could limit services, staffing and capital projects; staff estimated the city would have foregone roughly $2.2 million over four years under such a cap and flagged potential bond/credit impacts on a planned $36 million wastewater bond.
City staff and council members used regular reports to raise alarms about a pending state proposal that would cap municipal spending growth.
City administrator Jennifer McCausland said House Bill 2745 would impose a 3% cap on city expenditures and called it “not reasonable,” saying the measure could prevent cities from funding essential services, salary adjustments and capital projects. “When we started hearing about this last week, Matt pulled up how much money would have not been able to be collected by the City of Andover in 2023, 2024, 2025, 2026 ... it would have been $2,200,000 over the last 4 years,” McCausland said.
Director of finance Matt Kane added that the bill includes no exemption for debt and warned of potential effects on credit ratings and interest costs for major upcoming projects. “We have a wastewater treatment plant that we’re building right now that’s gonna have approximately a $36,000,000 bond on it here in a couple years,” Kane said, noting that higher interest would add long-term costs.
Council members urged residents to contact legislators and noted the measure’s timing during a legislative session. McCausland said she would prepare written testimony and encouraged constituents to reach out to the House Taxation Committee.
No formal council action was taken; the discussion was informational and advisory to residents and legislative contacts.