Financing Options Outlined for Future Andover High School Project
Town Manager Andrew Flanagan and Keith Taverna provided a report outlining potential strategies for funding a future Andover High School building project during a tri-board meeting.
Report focuses on two approaches: a conventional debt exclusion approach, and an alternative approach referred to as the Fiscal Stability Plan that would seek an override to establish permanent additional levy capacity dedicated to capital projects.
On Wednesday, November 4, Town Manager Andrew Flanagan and Superintendent of Schools Keith Taverna presented potential financing options for a future Andover High School building project during a Tri-Board meeting of the Select Board, Finance Committee, and School Committee. The presentation was developed in response to a March 2026 request from the School Committee to examine financing options, the Massachusetts School Building Authority (MSBA) process, and potential next steps for a future project.
The presentation outlined two potential approaches. Under a conventional debt exclusion approach, the Town would borrow all of its local share of a future project and seek voter approval of a temporary Proposition 2½ debt exclusion to support the resulting debt service. The second approach, referred to as the Fiscal Stability Plan, would seek voter approval of a Proposition 2½ override to establish permanent additional levy capacity dedicated to capital investment. Funds would begin accumulating before major borrowing occurs and could be used to reduce the amount borrowed, support debt payments, and build long-term capacity for future Town and School capital projects.
Both approaches assume that a future AHS project would be completed with financial support from the MSBA. The current analysis assumes an effective MSBA reimbursement of approximately 22 percent. The presentation also relies on a series of planning assumptions related to project cost, construction escalation, borrowing rates, and timing. These estimates are intended to provide a framework for comparing the two approaches and would change as a project advances through the MSBA process.
The November 4 presentation represents an early step in a broader community discussion about the future of Andover High School and how a major building project could be financed. The full report prepared by the Town Manager and Superintendent provides additional information about the history and needs of AHS, the MSBA process, the financial assumptions used in the analysis, and the policy considerations associated with each approach.