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HomeMy WebLinkAbout2014 Annual Town Report «m^ � . « � . Town of North Andover, Massachusetts 2014 Annual Report Table of Contents North Andover Service Listings Division of Public Works Our Town 3 Division of Public Works 63 Town Offices 4 Town Officers and Committees 10 Division of Community Services Commission on Disability Issues 68 General Government Housing Authority 73 Board of Selectmen and Town Manager 15 Assessors Office 26 School Department Town Accountant 27 Public School System 75 Town Treasurer 28 Town Meetings and Elections Town Clerk 29 Annual Town Election, March 25, 2014 80 Community Development and Services Annual Town Meeting Minutes, May 20, 2014 82 Community and Economic Development 30 Animal Inspector 32 Financial Reports Board of Appeals for Zoning 33 Fiscal Year 2014 Revenue Budget 121 Building Department 34 General Fund Fiscal Year 2014 Conservation Commission 35 Expenditure Budget 124 Elder Services 38 Sewer Enterprise Fund Fiscal Year 2014 Budget 128 Health Department 42 Water Enterprise Fund Fiscal Year 2014 Budget 130 Historical Commission 44 Stevens Estate Enterprise Fund Planning Department 45 Fiscal Year 2014 Budget 132 Stevens Memorial Library 47 Veterans' Services 55 Supplements Youth and Recreation Services Department 57 Comprehensive Annual Financial Report Division of Public Safety for Fiscal Year Ended June 30, 2014 Emergency Management 59 Management Letter Fire Department 60 Reports on Federal Award Programs Police Department 61 North Andover Service Listings Our Town INCORPORATED ASSESSED VALUATION April 7,1855 Real Estate Only $4,152,636,587 Personal Property $116,997,715 SITUATION Total $4,269,634,301 About 24 miles north of Boston Latitude 42°40" TAX RATE Longitude 717' For the period from July 1,2012 June 30,2013 Residential$13.72,Commercial $18.85 COUNTY Essex TAX BILLS Tax bills are paid quarterly. Payments are due on August 1, POPULATION November 1,February 1,and May 1.If unpaid by due date, 30,152 interest will be added according to law from the date due to the date payment is made.Motor Vehicle Excise is due thirty AREA days from date of issuance.Water bills are issued quarterly Approximately 26.63 square miles and are due 30 days from date of issuance. ELEVATION ANNUALTOWN ELECTION 91 feet.847 inches above sea level at Town Building Last Tuesday in March TOWN HALL TOWN MEETING Built in 1925 Open Town Meeting Meets in May SENATORS IN CONGRESS PRECINCTVOTING LOCATIONS* Edward Markey(617) 565-8519 All precincts vote at North Andover High School, Elizabeth Warren(617)565-3170 430 Osgood St. REPRESENTATIVE IN CONGRESS Polls open 7:00 a.m.until 8:00 p.m. Seth Moulton(978)531-1669 Call Town Clerk's Office at(978) 688-9501 for information. STATE REPRESENTATIVES 14th Essex—Precincts 1,2,3,4,and 5 Town of North Andover Web Site Diana DiZoglio(617) 722-2060 www.townofnorthandover.com 18th Essex—Precincts 6,7,and 8 James J.Lyons Jr.(617) 722-2014 STATE SENATORS 1st Essex Precincts 1,2,3,and 4 Kathleen O'Connor Ives (617) 722-1604 1st Essex and Middlesex Precincts 5,6,7,and 8 Bruce E.Tarr(617) 722-1600 *Polling locations subject to change. — 3 — Town Offices FIRE DEPARTMENT TOWN CLERK 124 Main Street 120 Main Street Emergency:911 PHONE: (978) 688-9500 PHONE: (978) 688-9590 FAX: (978) 688-9557 FAX: (978) 688-9594 HOURS: Mon.,Wed,Thurs.8:00-4:30 BUSINESS HOURS: Mon.,Wed,Thurs.8:00-4:30 Tues.8:00-6:00 Tues.8:00-6:00 Fri.8:00—Noon Fri.8:00—Noon Call for Passport Hours SCHOOL ADMINISTRATION POLICE DEPARTMENT 1600 Osgood Street 1475 Osgood Street PHONE: (978) 794-1503 Emergency:911 FAX: (978) 794-0231 PHONE: (978) 683-3168 HOURS: 8:00-4:30 FAX: (978) 681-1172 TTY. (978) 683-3168 North Andover High School HOURS:24 hours a day 430 Osgood Street (978) 794-1711 ANIMAL CONTROL North Andover Middle School PHONE: (978) 683-3168 495 Main Street (978) 794-1870 PUBLIC LIBRARY Atkinson Elementary School 345 Main Street 111 Phillips Brook Road PHONE: (978) 688-9505 (978) 794-0124 FAX: (978) 688-9507 Franklin Elementary School HOURS:Please call for hours 2 Cypress Terrace (978) 794-1990 PUBLIC WORKS Kittredge Elementary School 384 Osgood Street 601 Main Street PHONE: (978) 685-0950 (978) 794-1688 FAX: (978) 688-9573 HOURS: Mon.,Wed,Thurs.8:00-4:30 Sargent Elementary School Tues.8:00-6:00 300 Abbott Street Fri.8:00—Noon (978) 794-3673 SENIOR CENTER Thomson Elementary School 120R Main Street 266 Waverly Road PHONE: (978) 688-9560 (978) 794-1545 FAX: (978) 688-9563 HOURS: Call for Hours TOWN MANAGER 120 Main Street PHONE: (978) 688-9510 FAX: (978) 688-9556 — 4 — TOWN ACCOUNTANT BUILDING DEPARTMENT 120 Main St. 1600 Osgood Street PHONE: (978) 688-9520 PHONE: (978) 688-9545 FAX: (978) 688-9522. ADA Coordinator Municipal Budgeting Building Permits Municipal Financial Reporting Building Information State&Federal Reporting Demolition Permits Accounts Payable Fireplace&Chimney Permits Payroll Gas Permits Masonry Permits ASSESSORS Occupancy Permits 120 Main Street Plumbing Permits PHONE: (978) 688-9566 Relocating Structure Permits FAX: (978) 688-9556 Replacement Door Permits Exemption Applications Replacement Window Permits Motor Vehicle Excise Questions Roofing Permits Property Assessments Sealer of Weight and Measures Tax Rate Information Sign Permits Swimming Pool Permits BOARD OF HEALTH Tent Permits Vinyl Siding Permits 1600 Osgood Street Woodstove Permits PHONE: (978) 688-9540 Zoning By-Law Enforcement/Questions Communicable Diseases Info/Surveillance Environmental Health Concerns COMMISSION ON DISABILITIES Food Establishment Permits/Complaints Food Sanitation Training Programs American Disabilities Act Coordinator Health Screening:Blood Pressure,TB Home Visits CONSERVATION COMMISSION Housing:Requirements for safe and sanitary housing 1600 Osgood Street Influenza PHONE: (978) 688-9530 Nuisance and Sanitation Complaints Wetlands Information Public Swimming Pool Permits Rabies Vaccination Clinics:Dogs and Cats Recreational Camp Permits Subsurface Sewage Disposal:Permits and Information on Location Tanning&Massage Est.Permits Tobacco Control Program Vaccine Depot Well Drilling Permits — 5 — COUNCIL ON AGING-SENIOR CENTER FIRE DEPARTMENT 120R Main Street 124 Main Street PHONE: (978) 688-9560 PHONE: Emergency 911 Alzheimer's Identification/Intervention Program Non-Emergency(978) 688-9590 Assistance Programs Blasting Permits Blood Pressure Clinics Burning Permits 1/15-5/1 Choral Group Fire Prevention Discussion Group Fire Inspection- Smoke Detectors Educational Programs Flammable Liquids/LP Gas Permits Elders at Risk Oil Heat Appliance Installation Fitness Programs Sprinkler Fire Alarm Plan Review Free Pamphlets Sprinkler Installation Friendly Visitor Program Underground Fuel Tank Installation/Removal Fund-Raising Permits Handicapped Accessible Health Care Proxy LIBRARY Health Screenings 345 Main Street Home Care Services PHONE: (978) 688-9505 Homestead Act FAX: (978) 688-9507 Immunization Programs Anne Bradstreet Collection Income Tax Assistance Book Discussion Series Informational and Referral Books Lectures Books on Tapes Lending Library Boston Globe on CD-ROM Lunch Program Camcorder Magazines and Newspapers Cassette Players Meals on Wheels Computers (PC and Mac) Memorials Conference Room Monthly Parties Dial-Up Access Newsletter Exhibits Outreach Friends of Stevens Memorial Library Recreational Programs Geneology and Local History Senior/Disabled Tax Relief Program Handicapped Accessible SHINE(Serving Health Insurance Needs for Elders) Inter-Library Loan Telephone Reassurance Program Language Tapes Transportation Programs:Medical&Grocery Large Print Books ShoppingVolunteer Opportunities Magazines and Newspapers Weight Maintenance Program Meeting Room Widows/Widowers Support Group Merrimack Valley Library Consortium Member Museum Passes EMERGENCY MANAGEMENT SERVICES Music CDs PHONE: (978) 688-4904 On-line Periodical Database Auxiliary Police Original Art for Loan Disaster Services Phonedisc Evacuation Coordination Services Photocopies(reduce and enlarge) Liaison for State and Federal Agencies Records Local Emergency Planning Committee Rental Books Radio Communication Capability with Local, Reference Services State and Federal Agencies Special Programs for Adults and Young Adults Storyhours/Children's Programs EMERGENCY MEDICAL SERVICES Talking Books for the Blind PHONE:911 Tax Forms Television with Cable TV Hook-up Videos — 6 — PARKING CLERK PUBLIC WORKS 120 Main Street 384 Osgood Street PHONE: (978) 688-9550 PHONE: (978) 685-0950 Parking Ticket Information/Payment EMERGENCY(Non-Business Hours):(978) 683-3168 FAX: (978) 688-9573 PERSONNEL HOURS: Mon.,Wed,Thurs.8:00-4:30 Town Hall Tues.8:00-6:00 120 Main Street Fri.8:00—Noon PHONE: (978) 688-9526 Field and Park Maintenance Town Employment Opportunities Boat and Fishing Permits -Lake Cochichewick Pothole and Road Hazard Repairs PLANNING Public Tree Issues 1600 Osgood Street Recycling Permits PHONE: (978) 688-9535 Sewer Connections Flood Maps Sewer Blockages Planning Board Agendas Snow Removal Regulations Site Plan Review Street/Sidewalk Resurfacing Info. Subdivision Plans Trash&Recycling Collection Info. Zoning By-Law Water Connections Zoning Map Information Water Leaks Water Main Replacement POLICE DEPARTMENT Water Meters Watershed Information 1475 Osgood Street PHONE: Emergency 911 RECREATION Non-Emergency(978) 683-3168 PHONE: (978) 682-9000 FAX: (978) 681-1172 Arts in the Parks/Children's Theatre TTY. (978) 683-3168 Band Concerts Adult Police Academy Alcohol Server Training Information Boys Basketball Animal Control Field/Park Administration Auction Permits Field/Playground Permits Bicycle Helmet Sales Field Trips Girls Basketball Bicycle Registration Girls Softball Burial Permits(Non-Business Hours) Indoor/Outdoor Skating Information Business Security Surveys Parent Guide to Childress Resources. Car Seat Loan Program Child Identification Program Playground Areas Citizen Advisory Council Program Information/Registration Community Policing Seasonal Employment/Volunteer Opportunities Crime Watch Sports Organization Information Tennis Court Passes D.A.R.E.Program Womens Softball Detective Hot Line Firearm Permits School Safety Questions Student Police Academy Town Emergencies(Non-Business Hours) Traffic Control and Safety Issues — 7 — SCHOOL ADMINISTRATION— TOWN CLERK SUPERINTENDENT'S OFFICE Town Hall,Main Floor 1600 Osgood Street PHONE: (978) 688-9500—General Information PHONE: (978) 794-1503 (978) 688-9501 Town Clerk FAX: (978) 794-0231 Absentee Ballots Art:K-12 Alcoholic Liquor License Athletics (794-3144) Appointed Committee Listing Community Schools Program (978-794-3080) Automatic Amusement Device License Day Care Programs Birth Certificates Breakfast Club Bowling Alley/Billiard License Extended Kindergarten Business Certificates KidStop! Census Information/jury List EXCEL Enrichment Program Certification of Petitions High School SAT Prep Class I—Dealer License High School Driver Education Class II—Used Cars License Mens Basketball Class III Junk Dealer License Summer School Common Victualler License Academic Remediation Coordinates Annual Town Report Camps Death Certificates Technology Training Dog License—due January 1 Computers:K-12(978-794-3144) Elected Officials Current Listing Continuing Education(978-794-1711) Entertainment License English as a Second Language Fishing and Hunting License Literary Publications Justice of the Peace Music:K-12 Marriage License Physical Education:K-12 (978-794-3144) Massachusetts Income Tax Forms Special Education:Pre-School-12(978-794-1717) Nomination Papers Notary Public SCHOOL CLOSINGS Passports When weather conditions cause schools to be closed Raffle Permits or to delay their openings, PLEASE DO NOT Residential Street Listing CALL THE SCHOOL DEPARTMENT, POLICE Voter Registration DEPARTMENT, OR FIRE DEPARTMENT. TREASURER/TAX COLLECTOR Announcements are made on GOVERNMENT Town Hall,Main Floor ACCESS CHANNEL 22,local television stations PHONE: (978) 688-9550 (WBZ—Channel 4,WCVB—Channel 5,WHDH— Betterments Channel 7) and radio stations(WBZ AM,WRKO AM, Motor Vehicle Excise Tax Payments WBMX FM,WCCM AM,WLLH AM WHAV AM). Municipal Lien Certificates Parking Ticket Payments SELECTMEN'S OFFICE Real Estate Information/Payments Town Hall,Second Floor Water/Sewer Bill Payments PHONE: (978) 688-9510 Appointments—Boards/Commissions VETERANS' SERVICES Selectmen's Meeting Agendas Town Hall Utilities Hearings PHONE: (978) 688-9552 All Veteran Benefits STEVENS ESTATE AT OSGOOD HILL Discharge Papers Recorded 723 Osgood St. Flags and Holders for Graves PHONE: (978) 682-7072 Headstones and Grave Markers Facility Rental Information Veterans'Assistance — 8 — YOUTH AND RECREATION SERVICES 33 Johnson St. PHONE: (978) 682-9000/688-9515 EMERGENCY BEEPER: (508) 387-4919 WEB SITE:www.nayouth.com Crisis Intervention Information and Referral Social Programs Recreation Programs Juvenile Court Services Support Services Student-Run Services Adventure Programs Ropes Course Clothes Closet Summer Programs Job Bank Peer Mediation Joseph N.Hermann Youth Center Prevention Programs 24-Hour Emergenc Response Attendance Officer Holiday Giving Program Parenting Programs Family Services Youth Concert Series Recreation and Use of Fields Stevens Pond — 9 — Town Officers and Committees Officials and Term Expiration Dates AFFORDABLE HOUSING TRUST, COMMUNITY AND ECONOMIC BOARD OF TRUSTEES2 DEVELOPMENT George Koehler, Chairperson 2016 Eric Kfoury,Division Director Stephen L. Bernard 2015 Robert Bernardin 2016 COMMUNITY PRESERVATION COMMITTEE Joan Fitzgibbons 2015 John Simons, Chair(Planning Bd.Appt.) 2016 Roger B. Lawson,Jr. 2015 Alberto Angles,Jr.' 2017 Laurie A. Burzlaff 2015 Albert Fowler2 2015 Tracy M.Watson 2016 Deborah A. Feltovic 2016 (Cons. Comm.Appt.) ASSESSORS, BOARD OF Charles Gangi 2016 David J.Minicucci, Chairperson 2015 (Historical Comm.Appt.) George R. Barker,Jr. 2015 Terrence Holland 2017 Bryan Perry 2015 (Youth&Recreation Council Appt.) Garrett Boles, Chief Assessor Bradford B.Wakeman' 2016 William Gordon' 2017 AUDIT COMMITTEE Richard Vaillancourt, Chairperson' 2015 CONSERVATION COMMISSION Robert Ercolini' 2015 Louis Napoli, Chairperson 2017 Vidya Iyer' 2015 Deborah A. Feltovic 2015 David Torrisi 2015 Joseph W. Lynch,Jr. 2016 Karin Rhoton' 2015 John Mabon 2016 Albert P.Manzi,Jr. 2017 CABLE TV ADVISORY COMMITTEE Sean F.McDonough 2015 Ronn R. Faigen 2017 Douglas Saal 2016 Arthur S. Fundeklian 2016 Jennifer A. Hughes, Leonard I. Hafetz 2015 Conservation Administrator Robert S. Parker 2017 CONSTABLES2 COMMISSION ON DISABILITY ISSUES2 Ronald E. Bertheim 2016 James F. Lyons,Jr., Chairperson 2017 Richard D. Cain,Jr. 2015 Terry J. Brown 2016 Ronald Pollone 2017 Susan Christensen 2017 Nancy D.Murphy 2015 Donald B. Stewart 2015 Darcy Rubino 2016 Phyllis A.Jones 2015 COMMUNITY ACCESS & MEDIA, BOARD OF DIRECTORS Stephen J.D'Onofri, President' 2016 John W. Graham7 2015 Randall Hart' 2015 Thomas D.Ippolito' 2015 Elected Official Michael Grant' 2016 'Appointed by Selectmen Brian Fraser, Executive Director 3 Appointed by Town Manager 'Appointed by Town Moderator IAppointed by School Committee 6Appointed by School Superintendent 'Replacement by Vote of Remaining Members — 10 — COUNCIL ON AGING2 FESTIVAL COMMITTEE Elizabeth A. Poirier, Chairperson 2016 Jeff Coco, Co-Chairperson 2015 Maria V. Rosati 2015 Joan Heafey, Co-Chairperson 2015 Peter Aziz 2017 Sharon Coco 2015 William P. Callahan 2016 William Dolan 2015 Pricilla Cole 2016 James Fazio 2015 Dorothy Consiglio 2017 E.J. Foulds 2015 John Gilboard 2015 Neil Hamel 2015 John W. Graham 2017 Gen Koenig 2015 Patricia A. Long 2017 Conner Lincoln 2015 Joseph Sergi 2017 Jenn McLean 2015 Margaret V. Shaheen 2016 William Murphy 2015 Irene M. O'Brien,Director, Elder Services Dorothy Nolin 2015 Pristene Pazzanese 2015 CULTURAL COUNCIL Philip Pelletier 2015 Linda Ann MacDonald, Chairperson 2016 Martha Salisbury 2015 Helena Minton 2017 Michael Wilson 2015 Carmen Santiago 2016 Suzanne Fischer 2015 Jennifer Recklet Tassi 2016 Julie Faro 2015 FINANCE COMMITTEE Karin Valliere-Moscetto 2015 William Callahan, Chairperson 2015 Diane Hinckley 2017 Karen Blake 2015 Liz Gerron 2016 EMERGENCY MANAGEMENT AGENCY2 Susan Almono 2016 Jeffrey J. Coco,Director 2015 Chris Nobile 2017 John P. Savastano, Deputy Director 2015 Thomas Ringler 2017 Paul Gallagher, Co-Dep.Director, 2015 Martha Solof 2016 Police Dept. Liaison Tim Tschirhart 2016 Andrew V.Melnikas, Co-Dep.Director, 2015 Donald Elliot 2017 Fire Dept. Liaison Connor Lincoln, 2015 FIRE CHIEF Senior Operations Officer Andrew V.Melnikas Frank Dushame, Operations Division 2015 Neil Hamel, Operations Division 2015 FINANCE DIRECTOR/TOWN ACCOUNTANT Carl Langlois, Operations Division 2015 Lyne M. Savage 2018 William M. Hastings, 2015 RACES Sr. Communications Officer GREATER LAWRENCE COMMUNITY Timothy McDonald, 2015 ACTION COUNCIL RACES Communicator Jonathan Pearlson 2015 Steven Tessler, RACES Communicator 2015 GREATER LAWRENCE REGIONAL TECHNICAL HIGH SCHOOL DISTRICT COMMITTEE REPRESENTATIVE' Frank A. Rossi 2017 Elected Official Appointed by Selectmen Appointed by Town Manager 'Appointed by Town Moderator IAppointed by School Committee 6Appointed by School Superintendent Replacement by Vote of Remaining Members — 11 — GREATER LAWRENCE SANITARY LICENSING COMMISSIONERS DISTRICT REPRESENTATIVE Tracy Watson, Chairperson 2017 Andrew W.Maylor 2015 Phil DeCologero 2018 Donald B. Stewart 2017 BOARD OF HEALTH' Richard M.Vaillancourt 2018 Thomas Trowbridge, DDS,MD, 2015 Rosemary Connelly Smedile 2016 Chairperson LarryF. Fixler 2017 MACHINE SHOP VILLAGE Francis P.MacMillan,Jr.,MD 2017 NEIGHBORHOOD CONSERVATION Joseph McCarthy 2016 DISTRICT COMMISSION Edwin C. Pease 2015 Liz Fennessy, Chairperson 2017 Francis P.MacMillan,MD, Harry Aznoian 2015 Public Health Physician Philip L. Pelletier 2016 Susan Y. Sawyer, REHS/RS, Lauretta Wentworth 2016 Public Health Director Janice Williams 2015 Michele Grant, Public Health Inspector Kenneth J.Tokarz,Alternate 2017 Debra Rillahan, R.N., Public Health Nurse MERRIMACK VALLEY PLANNING HARBOR MASTER COMMISSION Peter Boynton 2016 Richard J. Byers(Appt.by Planning Bd.) HISTORICAL COMMISSION OLD CENTER HISTORIC DISTRICT Kathleen Szyska, Chairperson 2015 COMMISSION Anne Erickson 2016 George Schruender, Chairperson 2015 Charles Gangi 2016 Harry Aznoian 2017 Patricia Long 2015 Leslie M. Frazier 2016 James F.Wefers 2014 Shepard Spear 2017 Janice Williams 2014 Martha Larson 2015 Michael Lenihan 2017 HOUSING AUTHORITY' Kathleen Szyska 2016 Edward Snell, Chairperson 2016 Roger D. Lawson,Jr. 2015 Edward Capodilupo 2020 David M.Mermelstein 2016 Stephen Long 2017 Mary Beth Soucy 2018 Madeleine Sutcliffe, State Appointee 2016 Cathy Hoog, Executive Director HUMAN RESOURCES' Cathy J.Darby,Director INSPECTORS' Gerald A. Brown,Inspector of Buildings & Zoning Enforcement Officer Brian Leathe, Local Building Inspector Stephen C. Galinsky, Plumbing&Gas Inspector Peter Murphy, Electrical Inspector R.David Lindsay,DVM, 2016 Animal Inspector Elected Official Appointed by Selectmen Appointed by Town Manager 'Appointed by Town Moderator IAppointed by School Committee 6Appointed by School Superintendent 'Replacement by Vote of Remaining Members — 12 — PATRIOTIC OBSERVANCE & MARCHING SCHOOL BUILDING COMMITTEE COMMITTEE Stanley B. Limpert, Chairpersons Ted Tripp, Chairperson 2016 Jordan Burgess' Paul Gangi 2016 Jay Burke Rev. Richard Knight 2016 Eva Hamori4 Daniel P. Lanen 2016 Dan Ryan' Gerry Maguire 2016 Maureen Walsh Sakakeeny4 Joe Edward Smith 2016 Thomas Zahoruiko4 Domenic Terranova 2016 Matt Twiss 2016 SCHOOL COMMITTEE' Ian Wilson 2016 Andrew P.McDevitt, Chairperson 2018 Adele Johnson 2016 Brian D. Gross 2017 Ross McQuate 2016 Stanley B. Limpert 2017 Ann Armitage 2016 David Torrisi 2018 Joe Guggenberg 2016 Zora Warren 2016 Muriel Katschker 2016 Edward Mitchell,Veteran's Director 2016 SCHOOL SUPERINTENDENTS Kevin Hutchinson PLANNING BOARD' John Simons, Chairperson 2015 SELECTMEN, BOARD OF' Michael Colantoni 2017 Richard Vaillancourt, Chairperson 2018 David R. Kellogg 2016 Rosemary Connelly Smedile 2016 Lora McSherry 2015 Donald B. Stewart 2017 Peter Boynton 2017 Tracy M.Watson 2017 Lynne Rudnicki,Associate 2017 Phil DeCologero 2018 POET LAUREATE STEVENS ESTATE, BOARD OF TRUSTEES2 Karen M. Kline 2016 Kevin J.Willoe, Chairperson 2016 William V.Dolan 2015 POET LAUREATE COMMITTEE Eric P. Frahlic 2017 Marina Salenikas, Chairperson 2017 E.William Hanson 2017 Thomas James Baker 2017 Stephanie Jones 2015 Jill Barker 2015 David Boudreau 2017 Kristen Hollenbeck 2015 Jonathan Albano 2016 Chandrika Shah 2015 Blair Woodman 2016 STEVENS MEMORIAL LIBRARY, Kathleen Keenan, Library Director, Ex Officio BOARD OF TRUSTEES Maria G.Mesinger, Chairperson POLICE CHIEF Ann Cavanaugh Paul J. Gallagher William Duffy,Jr. Eva Hamori PUBLIC WORKS3 E.William Hansen Bruce D.Thibodeau,Director Peter Lafond Raymond Vivenzio PURCHASING DIRECTOR Kathleen Keenan, Library Director Raymond Santilli REGISTRAR OF VOTERS, BOARD Elected official Martha Salisbury, Chairperson 2017 'Appointed by Selectmen Carrie Crouch 2016 'Appointed by Town Manager Wendy D.Wakeman 2015 'Appointed by Town Moderator Joyce A. Bradshaw,Town Clerk, IAppointed by School Committee Ex Officio 6Appointed by School Superintendent 'Replacement by Vote of Remaining Members — 13 — SUSTAINABILITY COMMITTEE WINDRUSH FARMS STEERING COMMITTEE Lisa Conti 2015 Rosemary Connelly Smedile, 2015 Will Edwards 2015 Chairperson Stephen E. Foster 2015 Thomas Coppa' 2015 Raymond Geraneo 2015 Jennifer Hughes' 2015 Martha Mittelstaedt 2015 John Mabon' 2015 Susan Almono 2016 Josselyn Shaunessey Julio Giglio 2016 (Appt.by Lic.Bd.of Directors) Michael Carney 2016 Amanda Hogan Robert Rafferty 2016 (Appt.by Lic.Bd.of Directors) Katie Champagne 2016 Shepard Spear 2016 YOUTH & RECREATION COUNCIL Michael Carney 2016 Thomas Cieslewski, Chairperson 2016 Donald B. Stewart, Selectman, Justin Benincasa 2016 Ex Officio Peter Breen 2015 Bruce D.Thibodeau, Carrie Crouch 2015 Public Works Director, Ex Officio Sandra L. Goldstein Savoie 2016 John D. Lennhoff 2017 TOWN CLERK William McCarthy 2015 Joyce A. Bradshaw Hollie Williams 2017 Andrew Firmin 2017 TOWN COUNCIL Rick Gorman, Executive Director Urbelis &Fieldsteel, LLP ZONING BOARD OF APPEALS2 TOWN MANAGER Albert P.Manzi,III, Chairperson 2015 Andrew W.Maylor Richard J. Byers 2015 Alan E. Cuscia 2017 TOWN MODERATOR' D. Paul Koch,Jr. 2016 Mark S.DiSalvo 2018 Ellen P.McIntyre 2016 Michael P. Liporto,Associate 2015 TREASURER COLLECTOR Douglas Ludgin,Associate 2016 Jennifer A.Yarid Deney Morganthal,Associate 2017 VETERANS' SERVICES2 Edward V.Mitchell,Director 2015 Neil Patnaude, Graves Officer 2017 Elected Official Appointed by Selectmen s Appointed by Town Manager 4Appointed by Town Moderator Appointed by School Committee 6Appointed by School Superintendent 'Replacement by Vote of Remaining Members — 14 — Rosemary Connelly Smedile, Chairman William F. Gordon Board of Selectmen and Town Manager Donald B.Stewart b Richard M. Vaillancourt, Clerk Tracy M.Watson, Chairman of the Licensing Commission Andrew W. Maylor, Town Manager The following pages contain excerpts from the approved minutes from various Selectmen's meetings held during Calendar Year 2014. These minutes are not intended to provide the reader with a comprehensive list of all business before the Board during 2014,but instead are intended to provide an overview of the issues addressed by the Board and the Town Manager, and various votes taken by the Board. Please note that the format of the minutes may have been changed for presentation purposes and should not be construed as the official record of said meetings. During 2014 the Board of Selectmen and the Town Manager, along with a dedicated and professional staff, continued to focus on our core goals of sustainability and steward- ship evidenced by increasing reserves and improved town infrastructure.Just as important is maintaining a customer friendly service oriented government which is engaged in an ongoing dialogue with all stakeholders. The motto adopted several years ago of"plan the work and work the plan" has resonated beyond town hall to the School committee and Finance com- mittee enabling us to establish positive strategic relationships with each.We have shown that by working together we can find a way to serve our residents while continuing to make strides towards making North Andover a model community that others will want to emulate. The Board and the Town Manager would like to take this opportunity to express their sincere appreciation to all those individuals who have taken time away from their families and friends to serve on the many committees, commissions and boards that are the lifeblood of the Town.The Board and the Town Manager are grateful for the depth of experience and talent that each individual brings to these committees.We would also like to recognize Karen Robertson, Adele Johnson, and Laurie Burzlaff for their continued devotion to serving the public and assisting the Manager and the Board. January 2014 GFOA's distinguished Budget Presentation Award The Government Finance Officers' Association (GFOA) has awarded the Town of North Andover its Distinguished Budget Presentation Award for the current budget. This award is the highest form of recognition in governmental budgeting. North Andover received this award two years in a row.Thank you to Lyne Savage, Budget Director/Town Accountant. Massachusetts Tree Wardens' and Foresters' Association — 'Tree Warden of the Year Award'to John Lavin At their annual conference last week, the Massachusetts Tree Wardens'and Foresters'Asso- ciation presented the`Tree Warden of the Year Award'to John Lavin.Along with the award, the Association's Executive Board will plant a tree in North Andover this spring in John's honor. Emerald Ash Borer— Ken Gooch, Department of Conservation and Recreation Ken Gooch of the Massachusetts Department of Conservation and Recreation provided the Board with an update of the Emerald Ash Borer insect that has infested some Ash Trees in North Andover.The U.S. Forest Service is currently in the process of delineating the recent find.In order to complete some of the necessary work,he is requesting permission for DCR to `drop and peel'trees of Town owned property.Jennifer Hughes, Conservation Administrator is supporting this work. — 15 — A public meeting will be held on January 28,2014 at 6:30 p.m. at the Stevens Memorial Library. Tracy Watson made a MOTION, seconded by Donald Stewart,that the Board of Select- men give permission to the Massachusetts Department of Conservation and Recreation to drop and peel trees on Town owned property due to the Emerald Ash Borer situation. Vote approved 5-0. Purchase & Development of former Bradstreet School Property Per the Selectmen's previous vote, discussions have been ongoing between the Town and Hearthstone Realty Corporation (along with respective legal counsels) regarding the pur- chase and development of the former Bradstreet School property. The Purchase and Sales Agreement and the Land Development Agreement need to be approved and signed by the Board of Selectmen. The Town Manager said he would meet with the Historical Commission to ask them to reconsider its vote and rescind their motion on the demolition delay.Once the agreements are approved and signed by the Board they are legally binding documents and the former school will be demolished. William Gordon made a MOTION, seconded by Richard Vaillancourt, that the Board of Selectmen approve and execute the `Purchase and Sale Agreement'between the Town of North Andover and Bradstreet Partners, LLC for the former Bradstreet School property at 70 Main Street,North Andover. Vote approved 5-0. Richard Vaillancourt made a MOTION, seconded by Donald Stewart that the Board of Selectmen approve and execute the `Land Development Agreement' between the Town of North Andover and Bradstreet Partners, LLC for the former Bradstreet School property at 70 Main Street,North Andover. Vote approved 5-0. February 2014 FY2013 Audit Report— Powers &Sullivan, LLC(independent auditors) Richard Sullivan and representatives from Powers &Sullivan, LLC the Town's independent auditors were present and reviewed their report and findings.The overall financial picture is very good with no serious internal problems;the auditors said they have an unqualified opin- ion meaning an accurate report. The Management letter was short with a few comments and recommendations; four out of six prior year recommendations were resolved and two in the near future.There are only three recommendations for the current year, Audit of Student Activity Funds, Police Detail and Ambulance Receivables, Trust Account Reconciliations. Informational Comments on Government Accounting Standards Board (GASB) Statements for Pensions and OPEB and Reserve Fund for Future Payment of Compensated Absences. Mr. Sullivan commended the work of the Finance Director Lyne Savage and her staff for all their work.It was a pleasure to work with the Town's financial team and thanked them for their assistance. Adoption of Financial Reserve Policies Swearing-in Ceremony Five Police Officers were sworn into office and have successfully completed the Police Recruit Academy.The Officers are as follows:Julie A.Nigro,Michael P.Hennessy,Fredy Almanzar Thomas,Matthew J. Zahoruiko, and Kara A. Caffrey. Update on Group Insurance Commission (GIC) conversion The Town Manager gave an update of the conversion of the Health Insurance for all Town Employees and Retirees to the State GIC. A meeting was held in February with the Public Employee Committee to discuss the process on how the mitigation fund would be used to offset and reimbursement for high out-of-pocket medical costs. — 16 — Rules and Regulations Governing Takeout Food Served by Mobile Food Vendors The Mobile Food Regulation Committee met several times over the last six months and voted 4-2 upon the drafted regulations before the Board tonight.The regulations will not apply to ice cream trucks and canteen trucks which are regulated by the State. There were two dis- senting votes on the fact that they did not support the downtown parking restriction and the limiting the licenses to four.All other portions of the draft regulations were supported by all the committee members. Nadine Levin owner of Pipe Dream Cupcakes and Susan Roberts owner of Fredericks Pastries gave their opinions of the regulations and objected to some of its content. There was a lengthy discussion regarding the safety of pedestrians, restricted areas for locating the mobile food trucks, the extension of time trucks were able to sell their prod- ucts and other legal aspects of the regulations. William Gordon made a MOTION, seconded by Tracy Watson, to extend operation hours between the hours of 7:00 a.m. and 9:00 p.m.to give the Town Manager the authority to designate parking on non-school property and to limit mobile food trucks to refrain from parking on Main Street from Sutton Street to Second Street and to refrain from parking on High Street between Water Street and Prescott Street. A limit to four (4) vendor licenses will be permitted and the Community Development Director will alert the Town Manager if more applications are needed to amend the regulations.This is all contingent upon advice from Legal Counsel.Vote approved 4-0-1.Donald Stewart voted present. Update—Cyr Recycling Center DPW Director Bruce Thibodeau gave an update on the Cyr Recycling Center. Last year the site was very successful, the reduction in the amount of material entering the site was dramatic,which was the main goal.The DEP has new regulations in calendar year 2014 the requirements create an odor control plan, a vector control plan and stipulates that materials can no longer remain on site for more than one year.This could pose a potential problem for the ongoing operation of the site as a recycle facility in the future. However, it is imperative that we hold the line on the amounts coming into the facility to that primarily from Town residents to be in compliance with the new regulations. Town Manager's FY15 Recommended Budget The Town Manager Andrew Maylor presented a detailed summary of his FY15 Recom- mended General Fund Operating Budget.After the presentation he requested that the Board forward the Budget to the Finance Committee immediately for review. William Gordon made a MOTION, seconded by Richard Vaillancourt, to accept and approve the Town Manager's FY15 General Fund Operating Budget reserving the ability to make amendments as additional information comes forward and to forward the budget to the Finance Committee.Vote approved 5-0. March 2014 North Andover Legislative Delegation—Senator Tarr, Senator O'Connor Ives, Representative Lyons and Representative DiZoglio Senator Kathleen O'Connor Ives told the Selectmen that the Transportation Bond Bill re- cently approved by the Senate includes $1.5 million to improve bicycle and pedestrian safety along Route 114 between the Lawrence city line and Hillside Road,but the House version of the bill does not include this project.Much work needs to be done to work out the differences between the two versions. Representative Diana DiZoglio said she and others who represent the town are working towards getting a commuter rail stop in North Andover. The Merrimack Valley Planning Council is scheduled to consider that project and this would encourage economic development along the Route 125 corridor in North Andover.Representative James Lyons introduced a bill to deny state benefits to people who are not entitled to them and put the money saved into aid to cities and towns.The state spends $2 billion a year on benefits that could go to the cities and towns. Senator Tarr gave the Selectmen a handout with state projected revenue forecasts — 17 — with a 4.9% increase. He encouraged the Selectmen and Town Manager to write letters on the Town's behalf to include the Route 114 improvements to the Committee that will make decisions on the Transportation Bond Bill. Senator Tarr commented about several bills before the House and Senate re: Local Aid, Unfunded Mandates, Prevailing Wage, and Special Education Circuit Breaker/Regional Transportation.The Selectmen thanked them for work- ing together to help the Town of North Andover and their continued work in the State. Affordable Housing Trust & Bread & Roses Partnership Bread&Roses Housing Community Land Trust in partnership with the North Andover Af- fordable Housing Trust is opening its application process for an Affordable Home Ownership Opportunity at 91 Waverly Road, North Andover, selling price of$175,000. There will be seminars in April and May at the Stevens Memorial Library. Youth & Recreation Services Spring Carnival, April 24-27, 2014 The Joseph N. Herman Youth Center Inc. in conjunction with the Board of Directors of Youth&Recreation Services,requested permission to hold their 23rd Annual Spring Carni- val at 1600 Osgood Street from April 24-27,2014. Hours of operation are as follows:Thurs- day, April 24, 1:00 p.m. to 10:00 p.m.; Friday, April 25, 1:00 p.m. to 10:00 p.m.; Saturday, April 26, 1:00 p.m.to 10:00 p.m.and Sunday,April 27, 1:00 p.m.to 6:00 p.m.Carrie Crouch requested starting at 12:00 noon on Sunday, April 27, 2014, a change from the original re- quest at 1:00 p.m.William Gordon made a MOTION, seconded by Tracy Watson that the Board of Selectmen approves the request to hold the Youth&Recreation Services 23rd An- nual Spring Carnival at 1600 Osgood Street from April 24-27,2014,to waive all permit fees and to extend the time on Sunday,April 27,2014.Vote approved 5-0. Acceptance of Donations from Youth Sports Groups for Town's Athletic Fields/Facilities - $49,250 The Youth Sports Groups have made their annual donation, based on their respective pro- gram registrations, for the Town's Athletic Fields/Facilities. Donations over the past four years have totaled just over$200,000.Donald Stewart made a MOTION,seconded by Tracy Watson, that the Board of Selectmen accepts the donations from Youth Sports Groups for Town's Athletic Fields/Facilities in the amount of$49,250. Vote approved 5-0. Request by Police Department to install a stop sign on Hodges Street at May Street A resident asked about installing a stop sign at the corner of Hodges Street at May Street. Traffic Safety Officer Mark Wilson after an investigation of Hodges Street at May Street said that the area of May and Hodges Streets is a shortcut from Main Street and an entry/exit area for senior housing. Chief Paul Gallagher and Officer Wilson recommended the placement of the Stop sign and asked the Board's approval.Tracy Watson made a MOTION, seconded by Richard Vaillancourt, that the Board of Selectmen approve the request from the Police De- partment to install a stop sign at Hodges Street at May Street.Vote approved 5-0. Town Meeting Warrant— Report of the Community Preservation Committee John Simons, Chair of the Community Preservation Committee briefed the Board regarding the recommended projects for CPA funding as follows: McEvoy Field (Phase 2), $290,000 Open Space Recreation; Stevens Estate — Stained Glass Window Refurbishment, $25,120 Historical Preservation; Multi-Use Trail (Phase 1), $176,000 Open Space Recreation; Sar- gent School Playground, $92,260 Open Space Recreation; Old Center Preservation Project, $570,000 Open Space/Historical Preservation; Nan's Trail, $68,435 Open Space; Reserve for Affordable Housing, $196,600 Affordable Housing; Administrative Expenses, $30,000 Administrative Expenses;for a total of$1,448,415.The Board will formally vote their recom- mendations on this article at the April 14,2014 meeting. — 18 — Preliminary Design of New Fire Station The Architect and the Owner's Project Manager have been working for the past few months with a Design Advisory Group including representatives of the North Andover Fire Depart- ment.The Town Manager presented a preliminary design of the new Fire Station. April 2014 North Andover High School Varsity Wrestling Team The Board presented a Certificate of Accomplishment to the Wrestling Team for becoming the Massachusetts Division II State Champions for the 2013-2014 seasons. Stevens Pond Update and 2014 Fees Rick Gorman Director of Youth&Recreation Services prepared a memo with an overview of the work done at the Stevens Pond and the events planned for the 2014 season.A fee schedule was attached; The Selectmen were asked to set fees and given two options. Option A sets fees at the same level as last years; Option B includes a $15 increase to "Season Car Pass" only. William Gordon made a MOTION, seconded by Donald Stewart, that the Board of Selectmen approves the 2014 fees for Stevens Pond at last year's rates with no increases. Vote approved 5-0. 2014 Annual Town Meeting Warrant Since the Board voted the warrant at their last meeting on March 31,2014,changes have been made and incorporated into the warrant. These were small changes to language in various Articles and a message from the Town Moderator and the Finance Committee Report.The Board is requested to re-open the warrant,accept the 2014 warrant as presented and close the warrant. Tracy Watson made a MOTION,seconded by William Gordon,that the Board of Select- men re-opens the 2014 Annual Town Meeting Warrant.Vote approved unanimous 5-0. William Gordon made a MOTION,seconded by Tracy Watson,that the Board of Select- men accepts the 2014 Annual Town Meeting Warrant as presented. Vote approved unani- mous 5-0. Tracy Watson made a MOTION,seconded by William Gordon,that the Board of Select- men closes the 2014 Annual Town Meeting Warrant.Vote approved unanimous 5-0. Economic Development Self-Assessment Curt Bellavance Director of Community Development briefed the Board of a program to assess the Town by Dr. Bluestone of the Dukakis Center. The assessment will evaluate the strengths and weaknesses that exist in the town and do a comparison with other communi- ties like North Andover.There will be a kick-off meeting in early June and a report back in September or October. Endorsement of"North Andover Middle School — North Andover, Massachusetts—Safe Routes to School Infrastructure Program" Grant. Last June, the Board was presented with a preliminary assessment prepared by MassDOT for a`Safe Routes to School Infrastructure Program'for the North Andover Middle School. In September the Board endorsed the report and sent a letter of support to MassDOT.The Board is being asked to endorse and support this expanded grant program.Gene Willis,DPW Engineer gave an overview of the program and the changes that MassDOT has proposed. This grant will be fully funded by the state.Donald Stewart made a MOTION, seconded by William Gordon, that the Board of Selectmen endorse the North Andover Middle School— North Andover,Massachusetts— Safe routes to School Infrastructure Program' Grant. Vote approved 5-0. — 19 — May 2014 3rd Quarter Financial Report Finance Director/Town Accountant Lyne Savage Finance Director/Town Accountant Lyne Savage gave a budget status report for FY14 for revenue and expenses for the 3rd quarter ending March 31, 2014. Property Tax Revenue collections are at 74.3%;Tax Title collections are up by$276,950 compared to last year;Mo- tor Vehicle Excise Tax collections are at 92.6%which is up 20.4% from last year; Meal Tax collections are running at 79.1%; Penalties and Interest are at 174.4% of budget;Ambulance Services collections are on track at 82.4%;Inspection Fees aggregate collections are at 83.3%; Interest Income are at 76.4%. Expenses for all departments are running approximately at 71.6%,with exception of Snow&Ice Budget at a deficit of(8569,919.46).The Town identi- fied surpluses within various line items in the operating budget that will be able to absorb this deficit without having to go to Town Meeting to request additional funding. Enterprise Funds:Water revenue collections are at 86.7%of budget with expenditures running at 62.3%. Sewer revenue collections are at 79.3% of budget with expenditures running at 53.2%. All indications are that both water and sewer will end the year with a surplus. Stevens Estate collections are a 78.9% of budget which is down 11% with expenditures running at 78.9% of budget down 5% or $9,448.With the continued hard work of the Division Director there have been several more events booked between now and year end and based on that the Estate should end the year with a small profit. ISO's Public Protection Classification ISO collects information on municipal fire-protection efforts in communities throughout the United States. In each of those communities, ISO analyzes relevant data and then assigns a Public Protection Classification from 10 to 10. Class 1 generally represents superior property fire protection, and Class 10 indicates that the area's fire-suppression program doesn't meet ISO's minimum criteria. By classifying communities' ability to suppress fires, ISO helps the communities evaluate their public fire-protection services.The program provides an objective and countrywide standard that helps insurance companies establish appropriate fire insurance premiums for residential and commercial properties. The Town of North Andover's rating improved from a grade of 4 to a grade of 3. Public Hearing Richard Vaillancourt made a MOTION,seconded by Tracy Watson,to re-open and continue a Public Hearing from April 28,2014 regarding the Road Layout Hearing—Empire Drive Roll Call vote:William Gordon yes,Donald Stewart yes,Rosemary Smedile yes,Richard Vaillancourt, and Tracy Watson yes.Vote approved 5-0. Town Counsel has reviewed and approved as to form the conveyance documents submit- ted by the developer's counsel,subject to receipt and approval of final executed documents and updated title certification prior to recording and recommend that the Selectmen approve the layout of Empire Drive. Richard Vaillancourt made a MOTION, seconded by Tracy Watson that the Board of Selectmen recommend acceptance of Empire Drive as a public way, and declare that public necessity and convenience require the aforesaid way to be laid out and do hereby order and direct that said way be laid out as shown on Plan of Land entitled"Street Layout Plan of Em- pire Drive located in North Andover, MA"; Scale linch = 40 feet; prepared by Christiansen &Sergi Professional Engineers Land Surveyors, 160 Summer Street, Haverhill,MA 01830, dated January 1, 2014, and to accept deeds to all related open space parcels and easements, shown on Plans filed with the Essex County (Northern District) Registry of Deeds of the Land Court on October 16, 2009 as Plan No.18083E and on the above referenced Street Layout Plan.Vote approved 5-0. Tracy Watson made a MOTION, seconded by William Gordon, to close the Public Hearing on the road layout of Empire Drive.Vote approved 5-0. Roll Call vote:William Gordon yes,Donald Stewart yes,Rosemary Smedile yes,Richard Vaillancourt, and Tracy Watson yes.Vote approved 5-0. — 20 — June 2014 Certificate of Achievement for Excellence in Financial Reporting for FY13 The Certificate of Achievement for Excellence in Financial Reporting for FY13 has been awarded to the Town of North Andover by the Government Finance Officers Association (GFOA)for its comprehensive annual financial report.The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting. Approve a 20-Year Lease between Town of North Andover and SBA Steel LLC for a wireless communications facility at 723 Osgood Street(Stevens Estate) The current 10-year lease for a wireless communications facility at the Stevens Estate expires in July 2014. In April, the Town issued a Request for Proposals seeking to issue a 20-year lease. Only one company, the current lessee, submitted a proposal. The lease will result in revenue of over 81M over the lease period plus 50%of lease payments from all tenants located on the tower.As the current lessee will be awarded the lease, no new constructions, permits, etc.will be required. Richard Vaillancourt made a MOTION, seconded by Donald Stewart that the Board of Selectmen approves the 20-year lease between the Town of North Andover and SBS Steel LLC for a wireless communications facility at 723 Osgood Street(Stevens Estate)."Vote ap- proved 5-0. Approval of Preservation Restriction Agreement for the Captain Nathaniel Stevens House, 140 Academy Road, North Andover Historic New England has recently worked with the owner of the property to protect the Captain Nathaniel Stevens House at 140 Academy Road with a preservation restriction agree- ment. Pursuant to MGL c184, §§31-33, the Board of Selectmen are asked to approve the agreement.The North Andover Historical Commission has unanimously voted in support of this arrangement. William Gordon made a MOTION, seconded by Richard Vaillancourt that the Board of Selectmen approves the Preservation Restriction Agreement for the Captain Nathaniel Stevens House at 140 Academy Road,North Andover."Vote approved 5-0. Approval of'Inter Agency Police Mutual Aid Agreement' of Essex County Chiefs of Police Association Police Chief Paul Gallagher is requesting the Board to approve the`Inter Agency Police Mu- tual Aid Agreement'of the Essex County Chiefs of Police Association. Chief Gallagher was present at the meeting to respond to any questions. Tracy Watson made a MOTION, seconded by Richard Vaillancourt that the Board of Selectmen approves the `Inter Agency Police Mutual Aid Agreement' of the Essex County Chiefs of Police Association."Vote approved 5-0. July 2014 Acceptance of Donations for Summer Fun scholarships ($5,400) and for Summer Fun activities ($7,792.70)from Joseph N. Hermann Youth Center, Inc. to the Youth & Recreation Services The Joseph N. Hermann Youth Center, Inc. has for many years supported the activities and services provided by the Youth &Recreation Services Department. This donation totaling $13,192 is designated for Summer Fun scholarships and activities. William Gordon made a MOTION, seconded by Rosemary Smedile that the Board of Selectmen accept the donations from the Joseph N. Hermann Youth Center, Inc. in the amount of$5,400 for Summer Fun scholarships and $7.792.70 for Summer Fun activities to the Youth&Recreation Services. Vote approved 4-0. — 21 — Approval of 5-year lease, with additional 5-year extension option, for 170-172 Sutton Street with North Andover Thrift Shop In May, the Town issued a Request for Proposals for`Lease of Property' at 170-172 Sutton Street for the purposes of a non-profit thrift shop. Only one proposal from the North Ando- ver Thrift Shop was received and evaluated. Per Town Meeting vote, any contract(or in this case, a lease)with a term exceeding three years requires the vote of at least four(4) members of the Board. Rosemary Smedile made a MOTION, seconded by William Gordon that the Board of Selectmen approves a 5-year lease, with an additional 5-year extension option, for 170-172 Sutton Street with North Andover Thrift Shop.Vote approved 4-0. Proposed Dog Park Locations For discussion purposes a preliminary analysis was prepared by the Engineering staff at Pub- lic Works for six(6)potential sites for a dog park.Five of the sites are as follows:Cyr 1,Cyr 2, Reynolds 1, Reynolds 2, and Stevens Estate 1, are adjacent to active playgrounds and athletic fields.The last one is located along the access road from Charles Street to the Greater Law- rence Sanitary District which is closer to the downtown area.After a discussion of the various sites, the Town Manager asked the Board if they wanted to pursue this and focus on a site. The Board indicated that they would like more information on the Charles Street site.The Town Manager will proceed with the Department of Public Works and the GLSD to move forward with this proposed site and provide an update at the Board's next meeting. August 2014 Request from Kerry Anne Kilkelly of the Actors Company to use the Town Common on Friday, August 22, 2014 from 5:00-8:00 p.m. for a free theatrical performance of William Shakespeare's "Much Ado About Nothing". Rosemary Smedile made a MOTION, seconded by Don Stewert that the Board of Select- men approves the request of Kerry Anne Kilkelly of the Actors Company to use the Town Common on Friday, August 22,2014 from 5:00-8:00 p.m. for a free theatrical performance of William Shakespeare's"Much Ado About Nothing".Vote approved 3-0. MassDOT Special Speed Regulation No. 7929 —Andover Street (Chickering Road/ Johnson Street) MassDOT has modified the speed limit on Andover Street between Chickering Road and Johnson Street.A stretch of Andover Street is under Town jurisdiction and recommended by the North Andover Police Department to modify the speed limit due to curve in roadway. Tracy Watson made a MOTION,seconded by William Gordon,that the Board of Selectmen adopt the modified speed limits on Andover Street between Chickering Road and Johnson Street per MassDOT Special Speed Regulation No. 7929. Vote approved 4-0-1. (Donald Stewart abstained.) Removal of Public Shade Trees per MGL c87, §3 —266 Waverly Road William Gordon made a MOTION,seconded by Tracy Watson,to open a public hearing per MGL c87, §3 for the removal of public shade trees at 266 Waverly Road.Vote approved 5-0. Chairman Vaillancourt recognized Assistant Superintendent,James Mealey, who spoke on behalf of the North Andover School Department regarding the request.The School De- partment is requesting to remove two (2) public shade trees from the Town's right-of-way in front of the Thomson Elementary School at 266 Waverly Road.The removal of the trees is requested in order to create twelve (12) additional parking spaces needed for daily school op- erations.New trees would be planted in another area. Selectmen expressed concerns with the change in esthetics and effect on neighborhood by removing healthy trees. Rosemary Smedile, made a MOTION, seconded by William Gordon, to close a public hearing per MGL c87, §3 for the removal of public shade trees at 266 Waverly Road. Vote approved 5-0. — 22 — William Gordon made a MOTION, seconded by Rosemary Smedile, that the Board of Selectmen deny the request of the North Andover School Department to remove two (2) public shade trees at 266 Waverly Road.Vote approved 4-0-1. (Donald Stewart abstained.) September 2014 Welcome Home—Specialist Roger Mendel, U.S. Army Chairman Vaillancourt welcomed home Specialist Roger Mendel, U.S.Army,who returned home to North Andover last week from his first deployment to Afghanistan. He is the son of Teresa and Roger Mendel of Osgood Street.The Board thanked Specialist Mendel and his family for his service. Police Department Staff Recognition (taken out of order) Police Chief Gallagher recognized Police Department staff,Lieutenant EJ Foulds,Lieutenant Charles Gray, Sargent Michael Davis, Officers Jason Wedge, Robert Hillner, Eric Sewade, and Thomas Driscoll and Communication Officers,John Wood and Natasha Hubbard, for keeping the public safe during an incident on August 31st. Accept Donation ($10,000)from Wheelabrator North Andover to fund Trauma Intervention Program for FY15 Chairman Vaillancourt announced that Wheelabrator North Andover has generously agreed to donate $10,000 to pay the cost of the Trauma Intervention Program for FY15.The Board noted this has been an annual donation.Tracy Watson made a MOTION, seconded by Wil- liam Gordon, that the Board of Selectmen accept the donation from Wheelabrator North Andover in the amount of$10,000 to fund the Trauma Intervention Program for FY15.Vote approved 5-0. Approve Seven (7) Year Contract between Town of North Andover and SHI International Corporation and Tyler Technologies, Inc. for September 1, 2014 through August 31, 2021 to implement and maintain financial software system Town Manager,Andrew Maylor, explained that during the budget process,the town made a commitment to upgrade the financial software to a unified system.Mr.Maylor explained that Town Meeting authorized the Board of Selectmen to give authority to the Town Manager to enter into contracts that exceed 3 years. Lyne Savage, Finance Director/Town Accountant, and Matt Killen,IT Director,both recommend approval for these services.William Gordon made a MOTION, seconded by Rosemary Smedile,that the Board of Selectmen approve the seven year contract to implement and maintain financial software system between the Town of North Andover and SHI International Corporation and Tyler Technologies, Inc. for Sep- tember 1,2014 through August 31,2021.Vote approved 5-0. October 2014 November Elections (taken out of order) Town Clerk Joyce Bradshaw was present to provide information regarding the upcoming elec- tion scheduled for Tuesday,November 4,2014,and requested the Board vote to open the polls at 6:00 a.m. and vote to approve and sign the Warrant for the election. Tracy Watson made a MOTION, seconded by Donald Stewart,that the Board of Select- men approve to open the polls for the November 4,2014 Elections at 6:00 a.m.Vote approved 5-0. Tracy Watson made a MOTION,seconded by William Gordon,that the Board of Select- men approve and sign the Warrant for the November 4,2014 election.Vote approved 5-0. FY16 Budget Policy Statement In accordance with the Town Charter,Chapter 9-2-3,"on or before the first day of November of each year, the Board of Selectmen, after consulting with the Town Manager, shall issue a policy statement relating to the budget for the ensuing fiscal year.The statement shall estab- - 23 — lish the outer limits of possible budget growth for the town."Town Manager,Andrew Maylor, gave an overview of the budget process and presented to the Board the FY16 Budget Policy Statement. Mr. Maylor read the action items/goals from the Budget Policy Statement. The Board thanked Mr.Maylor for a great job. Rosemary Smedile made a MOTION, seconded by William Gordon, that the Board of Selectmen approve the FY16 Budget Policy Statement as presented.Vote approved 4-0. National Grid Pole Petition— Regency Place and Blue Ridge Road William Gordon made a MOTION, seconded by Donald Stewart,to open a Public Hearing on National Grid Pole Petition#16683985—Regency Place and Blue Ridge Road. Vote ap- proved 4-0. Chairman Valliancourt recognized the representative from National Grid, Dave Aguar, who explained the purpose of the petition is so National Grid can put in new underground utilities at Regency Place and Blue Ridge Road. Rosemary Smedile made a MOTION, seconded by William Gordon, to close the Public Hearing on National Grid Pole Petition #16683985—Regency Place and Blue Ridge Road. Vote approved 4-0. William Gordon made a MOTION, seconded by Rosemary Smedile, to approve National Grid pole petition #16683985 Regency Place and Blue Ridge Road,to install primary pullbox,primary electrical conduit and secondary electrical conduit as presented. Vote approved 4-0. November 2014 Winter Parking Ban The Board received a memo from Police Chief Paul Gallagher recommending no changes be made to the Winter Parking Ban for the upcoming season and explaining how residents will be notified of the ban.The proposed`All Night Winter Parking Ban'will be in effect for the months of December,January,and February.Residents will be notified via town wide call and information will also be posted on the website.William Gordon made a MOTION,seconded by Tracy Watson,that the Board of Selectmen approve the proposed`All Night Winter Park- ing Ban'from December 1,2014 through February 28,2015.Vote approved 5-0. Personnel Policy Amendments (Taken out of Order) The purpose of the hearing is to receive comments on proposed amendments to the Personnel Policy affecting non-union personnel. William Gordon made a MOTION, seconded by Rosemary Smedile,to open the public hearing to receive comments on proposed amendments to the Personnel Policy affecting non- union personnel.Vote approved 5-0. Human Resources Director, Cathy Darby, briefed the Board on the substantive changes to the Personnel Policy for non-union personnel.Ms.Darby explained that the revisions were distributed to impacted employees for comment prior to the public hearing. Tracy Watson commented that she heard from several employees that they were happy with the process. Rosemary Smedile made a MOTION, seconded by Tracy Watson to close the public hearing to receive comments on proposed amendments to the Personnel Policy affecting non- union personnel.Vote approved 5-0. Chairman Vaillancourt requested Ms.Darby provide employees with a bulleted list of the substantive changes. Tracy Watson made a MOTION, seconded by Donald Stewart,that the Board of Select- men approve the proposed amendments to the Personnel Policy affecting non-union person- nel.Vote approved 5-0. December 2014 FY15 Property Tax Classification The Board discussed the tax classification options and the levy and split amounts.In response to a question from the Board,Town Manager,Andrew Maylor,explained that a levy of 1.25% would fund the current year budget. If the levy is 2.5%, excess funds would be raised. Mr. — 24 — Maylor indicated that the current reserve policies of the town have put it in a position to be able to absorb cuts by the state. Rosemary Smedile made a MOTION, seconded by William Gordon, that the Board of Selectmen set the levy at 1.25%.Vote approved 5-0. The Board continued discussions about the shift between residential and commercial. William Gordon made a MOTION seconded by Donald Stewart that the Board of Se- lectmen adopt a shift of 1.34%and residential factor of.950192 for the purpose of classifying the FY2015 North Andover property tax rates. Vote approved 5-0. Town Manager Recommended FY2016-2020 Capital Improvement Plan The Town Manager's recommended FY2016-2020 Capital Improvement Plan was provided for review. Per Chapter 9, Section 5-1 of the Town Charter, the Board of Selectmen has 30 days to act on the CIP and forward to the Finance Committee once approved. The Town Manager explained the plan is consistent with previous years with the Facilities Master Plan being the centerpiece of the plan. One change was the design of classroom space has been moved out a year. The School Department needs one more year to determine where class- rooms are needed, so the design of the renovations for the DPW facility has been moved to FY16 and design of classroom space has been moved to FY17.It was recommended the Board accept the CIP as submitted reserving the right to make any changes at future meetings. The Town Manager also indicated that one of his goals in the future is to have a Facilities Improvement Plan. William Gordon made a MOTION, seconded by Rosemary Smedile that the Board of Selectmen accept the FY2016-2020 Capital Improvement Plan reserving the right to make changes as additional information becomes available and forwarding the document to the Finance Committee for their review.Vote approved 5-0. Approve and sign documents for sale of Bradstreet School Chairman Vaillancourt explained that the Board needs to vote to sign the documents to trans- fer the Bradstreet School property. Tracy Watson made a MOTION, seconded by Donald Stewart,that the Board of Select- men vote to execute,in connection with the disposition of the former Bradstreet School prop- erty, a Quitclaim Deed, Land Development Agreement, Addendum to Land Development Agreement, Power of Attorney and ancillary documents associated with the transaction.Vote approved 3-0. Approve and sign determination and consent for representation by Kopelman and Paige, P.C. for commuter shuttle agreement Chairman Vaillancourt explained that because Kopelman and Paige,P.C.is General Counsel to the Merrimack Valley Regional Transit Authority, a determination and consent by the Board is needed so that Kopelman and Paige, P.C. can represent the Town in the commuter shuttle agreement. Tracy Watson made a MOTION, seconded by Donald Stewart that it is determined, pursuant to Rule 1.7 of the Massachusetts Rules of Professional Conduct, that the Town of North Andover Board of Selectmen consents to Kopelman and Paige, P.C., to advise and negotiate on the Town's behalf in the matter of a multiparty agreement between the Town, the Merrimack Valley Regional Transit Authority and Ozzy Properties,for commuter shuttle services as disclosed in a letter to the Board dated December 16,2014, notwithstanding that Kopelman and Paige, P.C. serves as General Counsel to Merrimack Valley Regional Transit Authority.Vote approved 3-0. — 25 — Assessors Office Garrett C. Boles, Chief Assessor Aggregate Value of Real Estate-12 month $4,171,263,210 Aggregate Value of Personal Property $123,012,880 Real Estate Tax Levy-12 months $62,536,923.36 Personal Property Tax Levy-12 month $2,495,765.59 Residential Rate per Thousand $14.39 C.I.P. Rate per Thousand $20.29 Water Lein $222,225.68 Sewer Lein $256,878.33 Interest(Water) $27,529.39 Interest(Sewer) $32,094.37 Betterment with Interest Chapter 80(Sewer) $54,093.95 Chapter 40(Sewer) — Committed Interest(Sewer) — Committed Interest(Water) — Water/Sewer Lien Demand $19,465.19 Water/Sewer Lien Demand Commit Interest $2,298.11 Buildings and Vacant Land Assessed Single Family 6258 Condominiums 2059 Misc. Res. 29 Two Family 414 Three Family 46 Four—Eight Family 52 Vacant Land 432 Residential/Commercial 36 Commercial Buildings and Land 508 Industrial Buildings and Land 83 Personal Property Accounts 881 Chapter 61—Forest Property 7 Chapter 61A—Farm Property 137 Chapter 61B—Recreational Land 7 Exempt Buildings and Land 421 Public Utilities 4 Utilities Valued by State 6 — 26 — Town Accountant Lyne Savage Report of the Financial Operations for the fiscal year beginning July 1,2014 are as follows: Fiscal Year Highlights On June 18, 2014 we sold $8,448,668 general obligation bonds for the purpose of funding various capital improvements, including, ambulance, roadway improvements, municipal and school technology, building maintenance, district wide paving, facilities master plan (cen- tral office, Kittredge school gym), energy efficiency improvement to public buildings, public works equipment(front end loader and tractor), carbon filter actuators and emergency power upgrades WTP. Department of Revenue certified the following Free Cash amounts as of July 1,2014: General Fund $5,407,340 Water Enterprise Fund $2,662,977 Sewer Enterprise Fund $1,735,826 Stevens Estate Enterprise Fund $104,355 Capital Projects Fund The Capital Projects Fund is used to account for the acquisition or construction of major capital facilities and equipment.In fiscal year 2014 the Town expended$8,382,015 including: Education $168,734 or 2.0% Municipal Buildings $2,425,629 or 28.9% Other CIP(roadways, sidewalks, $1,479,185 or 17.6% vehicles, etc.) Water $1,139,004 or 13.6% Sewer $2,569,870 or 30.7% Chapter 90 $599,593 or 7.2% Enterprise Fund • Water fund retained earnings increased from $1,948,959 to $2,820,122 due to an in- crease an increase in water revenue collections well as a reduction in expenditures for the year. • Sewer fund retained earnings increased from $915,136 to $1,767,240 due to an increase in revenue collections as well as reduction in expenditures. • Stevens Estate FY14 retained earnings increase from $71,235 to $105,006 due to an increase in event revenues. Financial reports are detailed in the supplement at the end of Town Report. — 27 — Town Treasurer Jennifer Yarid, Treasurer As Town Treasurer, I submit my report for the 12 months ending June 30,2014. Receipts July 1,2013 to June 30,2014 $126,309,710.00 Disbursements July 1,2013 to June 30,2014 $117,983,383.00 RECONCILIATION OF CASH Developer Bond Escrows $3,518,697.00 Petty Cash 950.00 Bank of America 2,117,838.00 TD Bank 5,412,254.00 Century Bank 1,309,549.00 Fidelity 721,723.00 Georgetown Savings 108,128.00 Lowell Five 18,259,370.00 M.M.D.T. 3,669,346.00 Mt. Washington 11,274,034.00 People's 631,058.00 Santander 13,002.00 Smith Barney 934,990.00 Unibank 406,777.00 Total $48,377,716.00 UNCOLLECTED BALANCES—JUNE 30, 2014 Real Estate 2014 $501,316.00 2013 228,632.00 2012 72,049.00 2011 0.00 Personal Property 2014 30,865.00 2013 11,612.00 2012 13,466.00 2011 7,736.00 Motor Vehicle Excise 2014 176,423.00 2013 60,847.00 2012 21,208.00 2011 20,369.00 — 28 — Town Clerk Joyce A. Bradshaw, CMMC, Town Clerk I respectfully submit the report of the Town Clerk for the Year 2014. Our Annual Town Election on March 25, 2014 reelected Donald B. Stewart and Tracy M.Watson to the Board of Selectman. Brian Gross and Stanley Limpert were re-elected to the School Committee for three year terms.Frank Rossi was elected to a three year term as the Greater Lawrence Regional High School Representative.A very busy time with our Annual Town Meeting on May 20, 2014 again successfully completed in one night with all articles approved by the Attorney General. North Andover voters now number over 19,000. It is a daunting task to keep up with census and voter updates. We were ably assisted by Roseann Houle in completing and organizing over 11,000 census forms. We continue our passport agency authority and processed over 900 passports under the able direction of Suzanne Pelich and Patricia Sifferlen. This is one of the best services we provide to North Andover citizens and others as well.Open Meeting Law postings and assur- ing mandatory ethics filings for over 3,000 employees and members is a challenge.New state systems now include birth records and death records in 2014.These on-line initiatives require significant training and perseverance until technical glitches are ironed out.A dedicated and creative staff make all this possible. Karen Fitzgibbons,Assistant Town Clerk,is responsible for all the birth records and pro- cessing all licensing for the Board of Selectmen.Her attention to detail and expert guidance to new business owners fosters a rich environment for growth in the Town.Her help is invaluable in promoting business growth and keeping established businesses here.The staff that answers and directs resident inquiries in a professional and friendly manner is often the first contact a resident has.What a pleasure to call and get a real person to help and guide our residents and visitors to where they need to go for help. We recorded 255 Births, 92 Marriages, and 298 Deaths in 2014. Another busy year! Working with elected boards, appointed committees and outstanding personnel is a pleasure in North Andover as all these talented individuals give so much of their time and themselves. Their expertise and dedication to our community makes our Town the fine place to work and live.Thanks to all our residents for their continued support. — 29 — Community and Economic Development Eric J. Kfoury, Director The Division of Community and Economic Development oversees programs in land use plan- ning, economic development, health, transportation, and affordable housing. It manages the Town's land use authorities, the Health Department and the Stevens Estate, a special event and conference center owned by the Town.The primary objectives of the division are to en- hance the physical environment and improve the quality of life for North Andover residents, as well as to foster business development and promote economic growth. The division provides technical support to a variety of groups and committees and manages a variety of projects. It is staffed by a Director, Assistant Director and Administrative Assistant. In 2014, the divi- sion saw two significant personnel changes. First,Jean Enright was placed in the position of Assistant Director in August 2014. Second, Division Director, Curt Bellavance, resigned in December 2014. There are four land use departments, including Building, Planning, Conservation, and Zoning. These departments assist residents and contractors involved in construction and land development achieve code and regulatory compliance to protect their health, safety and welfare; reduce potential hazards; protect the environment; and maintain a well-designed, physically integrated, livable and prosperous community. Between them, there are a total of 8 full-time employees and 4 part-time employee, as well as senior volunteers, interns, special employees and consultants assisting them.Finally,there are 3 autonomous boards(Conserva- tion, Planning, and the Zoning Board of Appeals)with a combined total of 21 members. The Health Department protects the public health of residents, workers and patrons of the town through field inspections,compliance/enforcement activities,consultation and guid- ance, and the monitoring of potential environmental hazards. It is managed by 3 full-time employees, 1 part-time employee, and 1 intern.The staff assists a 5-member Board of Health in shaping policies, developing local regulations and implementing programs. The Stevens Estate is an events and function center for people and corporate groups sup- porting local businesses, tourism and a variety of town recreational, educational and com- munity events.It operates under an Executive Director and an Events Manager.A 7-member Board of Trustees advises the staff on various capital improvement and operational matters. In 2014, various community and economic development initiatives took place. Among them: • Continued master site planning for the integrated development of the former Davis &Furber buildings (East and West Mills). • Continued expansion at Merrimack College including construction of new on- campus student residences; bookstore renovations; innovation center; and the Volpe Center renovations. • Opening of a Dunkin Donuts adjacent to the airport and of a Pentucket Bank office branch in the Butcher Boy plaza. • Sale of the 1.15-acre former Bradstreet School property at the western end of the downtown corridor to allow for the construction of a new two-story com- mercial building and a new 15 unit residential apartment building to begin in Spring 2015. — 30 — Some of the largest employers in North Andover include: NAME CATEGORY EMPLOYEES Merrimack College Higher Education 748 Demoulas Supermarkets Grocery Store 400 Edgewood Retirement Healthcare 360 Watts Water Manufacturing 250 Technologies National Grid Utility 225 The Eagle Tribune Newspaper 205 With regard to affordable housing,the division continued its efforts to maintain and sup- port State sponsored programs and funding activities focused on promoting affordable hous- ing in the town, as well as the Commonwealth and Merrimack Valley region.The Town is a member of the North Shore HOME Consortium. In addition to working with the Planning Board,Zoning Board of Appeals,Conservation Commission and the Board of Health, the division assists the various boards, commissions and organizations regularly or on an as needed basis.These include: Local.- North Andover Merchants Association North Andover Affordable Housing Housing Partnership Committee Trust Disabilities Commission Community Preservation Committee Technical Review Committee Regional and State Designees.- Merrimack Valley Regional Transit Authority Merrimack Valley Economic Metropolitan Planning Organization Development Council Merrimack Valley Chamber of Commerce — 31 — Animal Inspector R. David Lindsay DVM, Inspector of Animals The following is a summary by the Animal Inspector for the calendar year 2014(prior years included for comparison). 2012 2013 2014 Number of animals quarantined for biting 32 26 20 Number of animals tested for Rabies 1 2 2 Number of animals testing positive for Rabies 1 1 0 Number of Cats quarantined for exposure to Rabies 22 16 19 Number of Dogs quarantined for exposure to Rabies 7 3 9 Number of Barns inspected 10 11 10 Number of Dairy cows and heifers 19 27 27 Number of Dairy herds' 2 2 2 Number of Beef cattle 6 0 12 Number of Steers/Oxen 0 2 2 Number of Beef herds' 1 1 1 Number of Horses/Ponies/Donkeys/Mules 54 55 65 Number of Goats 8 9 10 Number of Sheep 4 4 5 Number of Swine 2 1 2 Number of Swine herds' 2 1 2 Number of Fallow Deer 19 14 15 Number of Llamas/Alpacas 5 5 4 Number of Gamebirds 17 9 15 Number of Guinea Fowl 20 20 0 Number of Peacock 9 9 8 Number of Chickens 128 86 51 Definition herd: 1 or more animals. — 32 — Albert P. Manzi III, Esq., Chairman Ellen P. McIntyre, Vice Chairman Zoning Board of Appeals Richard J. Byers, Esq., Clerk �� D. Paul Koch Jr., Esq. Allan Cuscia Michael P. Liporto,Associate Member Doug Ludgin, Associate Member Deney Morganthal, Associate Member The North Andover Zoning Board of Appeals is a voluntary land use appeals board that is ap- pointed by the North Andover Board of Selectmen and is comprised of five regular members and three alternate members. The Zoning Board of Appeals annually elects a Chairperson, Vice-Chairperson, and Clerk pursuant to the adopted rules and regulations of the Zoning Board.Zoning Board members are each appointed to three year term.Regular Zoning Board meetings typically are scheduled on the 2nd Tuesday of each month and special meetings are scheduled as needed by the Zoning Board of Appeals. Generally, pursuant to MGL Ch. 40A, the North Andover Zoning Bylaw, The North Andover Town Charter, and the adopted Rules and Regulation of the Board, the purpose of the Zoning Board of Appeals is to hear petition(s) from aggrieved party who has stand- ing to seek relief from the North Andover Zoning Bylaw for a particular purpose by means of a dimensional variance, stemming from a particular zoning dimensional requirement that results in a hardship for the land owner with respect to the soil, shape &topography of their property.The Zoning Board of Appeals also hears petitions of land owners who have stand- ing that require a Special Permit for a particular use as required by the North Andover Zon- ing Bylaw.The Zoning Board of Appeals also has the authority to hear zoning enforcement requests from an aggrieved party who has standing to bring the request for enforcement and make subsequent findings thereto. Additionally, pursuant to MGL Ch. 40B and related regulations, the Zoning Board of Appeals is charged with hearing applications for affordable housing petitions when the appli- cant seeks a single comprehensive permit to construct an affordable housing project that may require zoning relief from other aspects of the Town of North Andover Zoning Bylaw(s)that the Zoning Board of Appeals would not otherwise hear pursuant to MGL Ch. 40A. From April 2014 the date of our last report through April 2015,the Zoning Board of Ap- peals took the following action: The Zoning Board of Appeals held 11 regular meetings and 1 special meeting. In the ordinary course of business, 15 petitions were filed that included 6 Variance requests and 7 Special Permit requests.After public hearings the Zoning Board took the following action: 6 Variance requests were granted, 7 Special Permit requests were granted, no Variance request were Denied, and 1 Request to Withdraw Without Prejudice was allowed. On July 22nd the ZBA held the above noted special meeting and granted a Special Permit and Variance to the Town of North Andover for the newly proposed Fire Station located off Prescott Street.Additionally,it should be noted effective January 2015 the Board's Adminis- trative staff hours were reduced by the Town from full time to half time. Board office hours have been adjusted accordingly to comport with the half time staff schedule. — 33 — Gerald A. Brown, Inspector of Buildings,Zoning Enforcement Building Department Officer Jim Hurley, Plumbing &Gas Inspector Brian Leathe, Local Building Inspector Peter Murphy, Electrical Inspector Maura Deems, Building Dept. Assistant The following comparison table indicates construction activity for the Fiscal Year 2014.The permitting process and inspection remained on schedule. We wish to thank those Town Departments that cooperated in the proper enforcement of Public Safety and Zoning By-Laws. NUMBER OF PERMITS PERMITS ISSUED FY 14 FY 13 FY 12 FY 11 New Single Dwellings 45 56 30 26 Multi Dwellings 4 2 12 13 Residential Additions &Alterations 678 657 696 689 New Commercial & Industrial Building 10 3 3 4 Commercial & Industrial Additions, Alterations 113 98 103 106 Pools 18 10 17 17 Assessory Building 20 13 10 13 Miscellaneous (Signs, Demolition, Foundations, 207 292 185 170 C of O, Town Owned) Certificate of Inspections 102 101 91 92 Wireless Facilities/Solar Installs 88 3 8 3 Total # permits 1285 1235 1220 1133 Total Building permit fees $634,902.81 $657,992.27 $816,364.33 $593,243.33 Electrical Permits 760 759 712 685 Gas Permits 606 529 407 422 Plumbing Permits 556 557 500 406 Total # permits 1922 1845 1619 1513 Total utility fees $189,725.87 $271,893.84 $173,397.08 $157,094.91 Total # permits issued—Buildings& Utilities 3207 3080 2839 2646 Total Building& Utility fees $824„628.68 $929,886.11 $989,761.41 $750,338.24 — 34 — Louis Napoli, Chairman Joseph Lynch, Vice Chairman John Mabon Albert P. Manzi,Jr. Conservation Commission Deb Feltovic Sean McDonough Douglas Saal Jennifer A. Hughes, Conservation Administrator Heidi Gaffney, Conservation Field Inspector Donna Wedge, Administrative Assistant The Conservation Commission is comprised of seven (7) volunteer members who are ap- pointed by the Board of Selectmen for three (3) year terms. In addition, the Conservation Department is staffed by an Administrator, a Field Inspector and a Departmental Assistant who are responsible for the issuance of permits,ongoing inspection of permitted sites,wetland delineation reviews, open space management and monitoring and providing information and assistance to residents and developers regarding the Town's natural resources. The Conservation Commission administers the Wetlands Protection Act (M.G.L. C. 131 S. 40) and the Town of North Andover Wetlands Protection Bylaw and Regulations (C. 178 of the Code of North Andover). These state and local regulations help protect valuable natural resources including North Andover's lakes, rivers, ponds, marshes, swamps, lands subject to flooding, vegetated freshwater wetlands, riverfront areas, ephemeral/vernal pools, and ephemeral/vernal pool habitats. These wetland resource areas play an important role in the following public health and safety interests: Protection of public and private water supplies; Protection of Ground Water Supply; Flood Control; Storm Damage Prevention; Prevention of Pollution; Protection of Fisheries; Protection of Wildlife &Wildlife Habitat; Recreation; Sedimentation and Erosion Control. In addition, wetlands provide a wealth of values to the public. Wetland benefits can be divided into three basic categories:fish and wildlife values,environmental quality values,and socio-economic values.Destruction or alteration of wetland resource areas eliminates or mini- mizes these important functions and values. For example, drainage of wetlands eliminates all the beneficial effects of the wetland on water quality and directly contributes to flooding problems. When wetlands are filled or their functions impaired, these benefits are lost and we all pay the price — in increased flooding and storm damage to streets and homes; more contamination of surface, groundwater and drinking water supplies; loss of wildlife habitat; and loss of valuable open space. Any construction(including,but not limited to:a permanent structure, addition, deck,pa- tio,shed,pool,roadway,driveway,septic system replacement/repair,public and private utilities, etc.) or alteration of land (including grading, landscaping, tree removal, etc.) within 100 feet of any wetland resource area or within 200 feet of a perennial stream/river in North Andover requires public review and a permit from the Conservation Commission. The Conservation Commission and professional staff are required to examine the potential impacts any proposed activity may have on identified wetland resource areas.Meetings are held twice a month for the purpose of reviewing project applications and conducting other Commission related business. — 35 — In fiscal year 2014, the Conservation Commission reviewed and permitted 21 Requests for Determination of Applicability(RDA),35 Notice of Intents(NOI),3 Abbreviated Notice of Resource Area Delineation (ANRAD) and 11 Small Projects (70 total permits). In ad- dition, numerous Modifications, Extension Permits and Certificates of Compliances were reviewed and issued by the department. Some of the significant projects permitted or under construction in fiscal year 2014 include:permitting of the Riding Academy 40B with a Con- servation Restriction over a large open space parcel; ongoing construction of the Regency Place and Stanton Woods subdivisions; ongoing construction of 40B developments at Mer- rimack Condominiums and the near completion of construction of the Meadows (Oakridge Village/Maplewood Reserves);permitting for drainage work at the Thrift Shop;construction of Pentucket Bank in the Butcher Boy Plaza; new single family homes constructed on Great Pond Road; new townhouses on Cotuit Street;various town sewer and roadway projects;per- mitting of a new parking lot and stormwater improvements at the North Andover Country Club; foundation restoration and additional parking at the Parson Barnard Barn; approval of a dry hydrant at Windrush Farm; and ongoing drainage work at Royal Crest. Eagle Scout projects approved included new boardwalks at Osgood Hill and Weir Hill. In addition to the administrative permit review process,the Department conducts weekly inspections for building permit applications and monitoring of active, permitted projects. Enforcement action and issuance of fines,when appropriate,is also a function of the Depart- ment. The Conservation Department, in cooperation with the Board of Health and DPW continue to coordinate efforts on beaver population and control where it causes damage to public and private properties and affects water supplies. The Department is also charged as active land managers of Town owned Open Space properties.A 2013 study by the Trust for Public Land, states that every dollar Massachusetts spends on conservation returns 84 and supports jobs for hundreds of thousands of people. With that in mind the Conservation Department,in conjunction with the Planning Depart- ment, undertook an update of the Town's Open Space Plan (last updated in 2010) which allows North Andover to accept state grant monies for open space purchase.The plan, origi- nally anticipated to be completed in fiscal year 2014,will require additional work to finalize maps depicting all of the towns open space and recreational areas.The plan is anticipated to be complete by the end of 2015 to ensure that the town continues to have the ability to accept grant monies for the purchase and protection of vital open space. Trails and Open Space The Conservation Commission maintains updated Open Space Rules and Regulations for all town-owned Open Spaces.Local volunteers,including members of the Friends of North An- dover Trails (FONAT) and several eagle scouts, completed maintenance and improvements to several existing trail systems this year including a boardwalk extension on Weir Hill,a new boardwalk at Osgood Hill and general trail maintenance at Foster Farm, Bruin Hill,Mazu- renko Farm and the Shawsheen River Trail. In the spring of 2014 Essex County Greenbelt Association constructed a new trail on the Farnsworth Reservation. Also during the spring, members of FONAT held a grand opening for a new hiking and mountain bike trail on con- servation restricted land on the former Boston Ski Hill (now the home of Brightview North Andover). These maintenance and improvement activities were very much needed and will benefit the residents of North Andover for decades to come.The Conservation Department is grateful to these organizations and volunteers for their efforts. In 2013 the non-native and invasive Emerald Ash Borer was found in trees on the Os- good Hill property.This insect,which has devastated ash trees across the United States and Canada,had only been detected in Western Massachusetts up to this point.The Department of Conservation and Recreation(DCR)went to work immediately to determine the scope of the infestation and issued a quarantine which regulates the movement of wood products in affected counties.More information can be found at www.emeraldashborer.info. — 36 — Hunting Hunting continues to be an important and effective land management tool in the control of deer populations throughout the commonwealth. Hunting is generally allowed pursuant to state statute on Open Space properties within the Commonwealth unless otherwise pro- hibited. Some method of hunting is, and has been, allowed on many Open Space properties in North Andover.The Conservation Department plays an important role in administering Hunting policies on town-owned Open Spaces by annually issuing special Hunting Licenses to promote an orderly coexistence with other recreational users during the hunting season. This year the Conservation Department is applying for a Forest Stewardship Matching Grant and hopes to implement the recommendations of the 2013 Forest Management Plan for Greater Osgood Hill. In addition, Bylaw Regulation revisions including new submission guidelines to reduce paper submittals and changes to the Stormwater section are also in process. — 37 — Elder Services Irene M. O'Brien, Director "WHERE DO WE GROW FROM HERE" Mission Statement The Elder Service Staff is encouraged to create an atmosphere that acknowledges the value of human life affirms the dignity and self-worth of the older adult in the community and main- tains a climate of Respect,Trust and Support. Vision Statement We strive to be the most trusted resource in supporting the needs of the older adult in the community. Significant Changes Due to relentless efforts in negotiating with local State officials and representatives and the successful lobbying by Massachusetts Councils on Aging, Senior Centers in Massachusetts received an increase in funding from $7.00 per older adult to$8.00.This reflected an increase in our Formula Grant Funding from $37,181 to $42,730. In 2002, there were 4,200 older adults in the North Andover community. We currently have 5,632 seniors which is an 8%growth over last year and a 34.9%increase over the last 11 years. The North Andover Senior Center, with the support we receive from the municipality, volunteer efforts and many community based organizations is able to offer a variety of pro- grams and services to the older adult living in North Andover.These combined efforts allow our clients to live independently in their own homes and be engaged in their community. FY 13 FY 14 FY 14 CATEGORY TOTAL ACTUAL ACTUAL PROJECTED Outreach Contacts 8,094 5,782 11,564 Community Education 8,635 4,320 8,640 Congregate Meals 3,678 2,101 4,202 Home Delivered Meals 17,519 8,486 16,972 Recreation 10,851 5,836 11,672 Transportation 4,834 2,520 5,040 Community Projects 4,320 2,370 4,740 Fitness 5,672 2,317 4,634 Prior Year Accomplishments With the increase funding in our Formula Grant we have increased the hours for the part- time driver and the Friendly Visitor Coordinator. We also have added two additional part time drivers who are vendors and paid through our donations account.These two drivers have allowed us to provide transportation for seniors to events such as Supper Club and Mystery Ride when the full-time driver is not available. *A successful pilot program in Memoir Writing was launched in collaboration with the Stevens Memorial Library.This program was a great success and we will be continuing with the development through the coming year. Our original goal was to tell these stories using NACA in taping the stories. We have changed our focus from the broadcasting to possibly short book writing. — 38 — COA BOARD OF DIRECTORS Elizabeth Poirier, Chairperson Jack Graham, Vice Chairperson Priscilla Cole, Treasurer Margaret Shaheen, Secretary BOARD MEMBERS Peter Aziz Dorothy Consiglio John Gilboard John Graham Patricia Long Albert Movsesian Maria Rosati ADMINISTRATIVE AND SUPPORT STAFF Cahla Ahlstrom John Conlon Robert Connelly Paula Crudale Donna Delaney Sandy Flaherty Barbara Joseph Jose Morel Patricia Patnaude Jamie Phelan Nancy Stevenson Bonnie Wolstromer SPECIAL GROUP CHAIRS AND FACILITATORS Fred Arakelian William Callahan Arleen Coon Gail Holleran Thomas Kooken Milton Long Carol &John Melvidas Robert Milstone Ruth McCarey John Minihan Richard Slade NUTRITION SUPPORT Judy A. Lalmond Maryanne Ramsey MEALS ON WHEELS DRIVERS Steve Anderson Toney Fragala Edward Laycock Lenny Nussbaum Patricia Patnaude Jack Trayer Robert&Maryanne Whitley SENIOR WELLNESS WALK IN CLINIC SUPPORT Rita Lonardo RN,Visiting Nurses Association Tina Cormio RN, Middlesex Community College &Students Registration Support Volunteers: Arleen Coon, Priscilla Cole, Elizabeth Poirier, Patricia Long MEDICAL TRANSPORT VOLUNTEERS Paula Crudale,Transportation Coordinator Jennifer Abouezzi Louise& Peter Aziz Theresa Battles Raymond Berthold Sarah Dunlap John Graham Betty Little Sue O'Brien Elizabeth Poirier Susan Solomon Sharleen Sullivan *An additional goal for last year was to increase community involvement in our Alzheim- er's support program; possibly having cable broadcast the event.We offered two special lec- tures focusing on Nutrition and Brain Health. This program was advertised throughout the community, one of the events was held in the evening. Unfortunately because of copyright laws we were unable to broadcast the event. Over 40 people attended each program. *Increased the number of seniors and the number of volunteers participating in the Friendly Visitor Program.Over the last year,25 volunteers have been paired up with 27 homebound adults. The purpose is to keep our older seniors safe in their homes.These volunteers serve as additional eyes in the community and report back to the Friendly Visitor Coordinator and Outreach Man- ager.Identifying any problems the seniors may be experiencing is successful in that the Friendly Visitors are asked to report any immediate problems as well as submit a monthly report explaining what the senior and Visitor did together,particularly noting any noticeable decline in the senior. — 39 — The Friendly Visitor Coordinator visits seniors every 2 to 3 months to be sure the program is working and keeps in touch with the Friendly Visitors.We also updated our Friendly Visi- tors'"Confidentiality Statement" and initiated a"Conflict of Interest" statement.The trend today is to assist seniors to stay healthy and safe as they"age in place"which is a labor intensive endeavor.This program has been very successful. *Represents goals that were set and achieved in FY2014.These combined goals allow our clients to live independently in their homes and continue to be engaged in their community. Support from the Friends of the North Andover Senior Center The Borderline Running Club brought back the 4"of July road race and designated pro- ceeds to benefit The Friends of the North Andover Senior Center. The staff at the Senior Center contributed greatly in support of this event. With the funding received from the 4" of July Road race our computer lab was updated with built in counter top for easy access to computers along with keyboard trays. The room was painted and personal needs shelves were built above the computer area. A bi-fold door was added to an existing closet and 6 new red chairs were purchased. New electrical wiring conduits were installed under the computer area. Electrical boxes and conduits were added to our reception area.In activity room 1,a pocket book shelf was added as well as shelving in two storage areas.A new Bunt coffee maker was installed to replace a broken model. The Friends of the North Andover Senior Center provided over 500 R/T ticket books from the MVTA for North Andover Seniors to purchase at a savings of 50% off the original cost. Market Basket food gift cards were purchased and distributed to over 30 low income elders. Scholarship Funding and Emergency Funds were all provided to many low income elders. In FY 15 we will continue collaboration with the following town departments: • Veterans Services -Patriot's Day,Memorial Day and Veteran's Day celebrations • Stevens Memorial Library-educational programs • Stevens Estate- outings • Youth&Recreation Services- Stevens Pond trip,Jimmy Buffett Walking Group In FY 15 community outreach programs: • Police Department National Night Out community outreach • Health Department providing community education, support for the Outreach B/P clinics held at the North Andover Housing Authority complexes. • Intergenerational programs with the Thompson and Franklin Elementary Schools. • TRIAD group for older adults working with the Sheriff's Department,Attorney Gen- eral's Office and local law enforcement developing and initiating programs that keep our seniors engaged and safe in their community. • Ongoing collaboration with North Andover Housing Authority to continue educating their residents about programs and services. • Merrimack Valley Philharmonic Society provided philharmonic performance tickets at no cost. FY15 Elder Service Department Goals 1. To launch an Anti-Bullying campaign collaborating with TRIAD along with the Youth Center,North Andover High School and NACAM. • TRIAD sounding board for change • To develop 3 scenarios using high school students acting out bullying/same scenario using older adults • CAM will produce film and broadcast on local network. • Taking it to the street, High school,Youth center, and Senior Center. — 40 — 2. To improve quality and preparation,in our existing food program. • To increase the participation in congregate lunches — Things to do to make food more appealing • Looking at alternative sources for meal preparation and service • Update equipment within kitchen area — Dishwasher — 3 sink area needs replacing — Cleanliness in food area — Safety Certification 3. To continue working with the Steven Memorial Library; moving the memoir writing group from a Pilot Program to a success story.As well as develop a new program servic- ing new technology equipment and how to use it. 4. To further support the Boarderline Running Club in the upcoming 4t'of July road race. • Volunteers • Advertising • Water station support These combined goals and objectives allow our clients to live independently in their homes and continue to be engaged in their community. Conclusion The North Andover Senior Center is the only municipally funded resource and referral agen- cy for the older adult living in the North Andover Community. The Elder Service Depart- ment continues to educate the citizens of North Andover so that they are aware of services available to support seniors in their homes. The challenge to the community as a whole is to find resources to continue funding new programs and enhance activities to meet the ever changing needs of the older adult. The Council on Aging Board of Directors and the staff at the North Andover Senior Center are committed to supporting and helping the older adult remain active, engaged and independent in the community. — 41 — Susan Sawyer, Public Health Director STAFF Debra Rillahan, Public Health Nurse Michele Grant, Public Health Inspector Health Department Lisa Blackburn,Admin.Assistant BOARD OF HEALTH MEMBERS Dr.Thomas Trowbridge,Chairman Larry Fixler,Secretary Edwin Pease Dr. Francis MacMillan Jr. Joseph McCarthy The Mission of the Health Department is to protect the public health by maintaining a com- prehensive program of environmental health services. Board of Health The North Andover Board of Health (BOH) is a five member board, whose members are appointed by the Town Manager for three-year, overlapping terms. One member must be a physician.The Board generally meets on the fourth Thursday of each month.The staff assists the BOH in shaping policies by implementing programs and developing regulations that the members deem significant to providing a healthy environment for the citizens and workers within the Town of North Andover. Staff In 2014 the Health Department staff executed the public health mission,which includes;field inspections,compliance and enforcement activities,monitoring of environmental hazards,so- cietal health related issues and consultation and guidance to citizens and governmental agen- cies. Deb Rillahan, the Public Health Nurse, continued regular health initiatives including; flu vaccination programs, senior health clinics and emergency preparedness. Michele Grant, the Public Health Inspector, continued to ensure the integrity of the inspection program including: trash truck permitting, food establishments, swimming pools,body art and rental housing, complaint response etc. Lisa Blackburn, Administrative Assistant, supported the staff and successfully maintained order over; the hundreds of permits issued by the Health Department, the multiple financial accounts and daily clerical support to the staff. Board members and staff also participated in emergency response measures on a 24/7 on call basis for public health emergencies as needed, such as; small oil spills,restaurant fire and flood occur- rences,rental housing issues, etc as needed.The Director was responsible for all public health programs as deemed by the needs of the community and as directed by the Board. The Department staff wishes to acknowledge our continued satisfaction with the various appointed persons and consultant run health programs; Dr. Francis MacMillan Sr.; Town Medical physician, Mill River Inc.; septic consultant, Tech Environmental; Incinerator air quality monitoring,Ron Beauregard;Tobacco Control,Wendy Adams;Bioterrorism Coordi- nator, Ed Johnson; Sealer of Weights and Measures; Dr. David Lindsey the Animal Inspec- tor; and food consultants, Public Protection Services (PPS). Regional Initiatives The North Andover Health Department is a member of multiple regional efforts such as the Healthy Communities Tobacco Control Program with sixteen communities and financed by a state grant. Their goal is to deter youth access and the use of tobacco products. The NA Board members worked together to draft a forward thinking revised regulation,which high- lights are; requiring e-cigarettes be kept behind the counter, limits cheap single cigar sales and eliminated flavored tobacco products to tobacco stores only.The Health Director is also — 42 — a town representative of the Greater Lawrence Public Health Bioterrorism Coalition,Greater River Valley Medical Reserve Corps the Northeast Regional Emergency Planning Commis- sion and the Greater Lawrence All Hazards Planning Committee.These groups are made up of multiple communities, and a variety of disciplines, to work for a common goal to become prepared for all types of public health emergencies. By being part of these groups North An- dover benefits by having partners who can share staff or supplies in times of need. Other 2014 Public Health Topics Programs and issues which required increased attention by the Health Department for 2014: • Board begins focusing on the local and regional response to Lyme and other related tick borne disease. • The Town continues to see new growth in restaurants and eating establishments. • Food safety focus for 2014 was to ensure compliance to food handlers wearing hats as required. • Streamlining the permit process continues to be a department priority. • Emergency preparedness for "all hazard events" moves forward; focusing on turning planning into practice. • Continued to encourage local outreach projects. Supported college interns who focused on various public health projects to promote career paths toward public health or envi- ronmental paths. • Held quarterly blood drives and two food safety manager(Servsafe) classes • Focus on mobile truck permitting processes • Continued trash truck route monitoring pilot program Annual Report Permit Statistics-2015 (Calendar Year—]/1/2014-12/31/2014) PERMIT TYPE OF COMMERCIAL PERMITS 269 (includes Animal —"the keeping of" (11), Body Art Establishments (1), Ice Rink(3), Recreational Camps (31 sessions), Sun-tanning Establishments (3), Swimming Pools (public/semi-public) (22), Tobacco Sales (23), Well Construction (1), Dumpsters (156), Frozen Desserts (18) PROFESSIONAL PERMITS 60 (includes Body Art Practitioner(1), Funeral Director(2), Septic Disposal Works Installer(27), Title 5 Inspector(30) FOOD EST/Related permits & reviews (145) 306 (includes temporary events) (161) SEPTIC 193 (includes Title 5 (89), Plan Reviews (35), Soils (18), Component and system repairs/new systems) (51) OFFAL HAULERS (81)/TRASH HAULERS (55 companies) & 263 PLACARDS (127) COMPLAINTS RESPONDED TO 50 (various categories) — 43 — Kathleen Szyska, President Anne Ericson, Secretary Historical Commission Patricia Long, Treasurer Charles J. Gangi James Wefers Jan Williams Nicholas Pelletier The North Andover Historical Commission is a seven person volunteer board whose members are appointed by the Board of Selectmen. Our mission is to serve as a resource to the citizens of North Andover in matters pertaining to the history of the town, helping to protect and preserve houses, landscapes, monuments and places of historic value. We also serve on the Community Preservation Act Board,the North Andover Historical District Commission and the Neighborhood Conservation District Commission (Machine Shop Village), as required by law. In 2014 the Commission worked with the Town to develop an RFP to insure the comple- tion of the Old Burying Ground Restoration and Preservation project.This historic project, supported by CPA funding,will ensure that our 1660 Old Burying Ground on Academy Road will continue to exist as an important record of our town's history.The contract was awarded to Fannin—Lehner Consultants of Concord,Massachusetts. The Commission worked with developers to ensure protection of the Berry Street Neigh- borhood Burying Ground. We also signed an agreement with the Berry Street developers that requires the developers to build a replica Federal Style farmhouse in place of the original farmhouse that the Commission allowed to be demolished. The replica farmhouse will be used as offices and a clubhouse for the development.This agreement ensures that the historic agricultural landscape of our Town will be maintained on the Route 114 gateway to North Andover. Throughout 2014 the Commission advised and approved appropriate restoration and re- pair work done by the Town on the oldest town-owned building, the Scholfield Mill, circa 1802. The Historical Commission in indebted to Carol Majahad,Director of the North Ando- ver Historical Society,for her continued support and assistance throughout the year. — 44 — Jean Enright, Interim Town Planner Planning Department NORTH ANDOVLR PLANNING BOARD John Simons, Chairman Peter Boynton Michael Colantoni Dave Kellogg Lora McSherry Lynne Rudnicki The Planning Department consists of a Town Planner, a Planning Assistant, and a six mem- ber volunteer Planning Board.The Department reviews and endorses all Approval Not Re- quired Plans(M.G.L.Ch.41 Sec. 81-L and 81-P),all Preliminary and Definitive Subdivision plans as required by M.G.L. Ch. 41 Sec. 81 - K to 81 - GG and the North Andover Subdi- vision Rules and Regulations, and reviews the Development Schedules for all subdivisions under Section 8.7 Growth Management.The Planning Department also reviews applications for the following seventeen different Special Permits, as authorized by M.G.L. Ch. 40A and the North Andover Zoning Bylaw, and Chapter 160, Stormwater Management and Erosion Control Bylaw: • Section 2.30.1 Common Driveway • Section 4.125 R-6 Zone • Section 4.136 Watershed Protection District • Section 7.2.1 Access Other Than Street Frontage • Section 7.2.2 Frontage Exception Lot • Section 8.3 Site Plan Review • Section 8.5 Planned Residential Development • Section 8.9 Wireless Service Facilities • Section 11 Planned Development District • Section 12 Large Estates Condominium Conversion • Section 13 Continuing Care Retirement Center • Section 14 Independent Elderly Housing • Section 15 Planned Commercial Development District • Section 16 Corridor Development District • Section 17 Osgood Smart Growth Overlay District • Section 18 Downtown Overlay District • Chapter 160 Town Bylaws, Land Disturbance Permit Planning Board Changes Peter Boynton joined the Planning Board in 2014 as an associate member. The Planning Board is fully staffed with five full members and one associate member. Past Year Overview During FY 2014,the Planning Department reviewed and granted the following permits: — 45 — # of Permits Type of Application Reviewed Approval Not Required 2 Site Plan Review Special Permit 5 Site Plan Review Modification 1 Watershed Special Permit 7 Land Disturbance Permit 1 Total 16 The Board also held public hearings for zoning changes for the Annual Town Meeting FY14, including bylaw amendments for Wind Facilities, Medical Marijuana Treatment Fa- cilities,and the Downtown Overlay District, as well as a zoning map amendment to establish a Medical Marijuana Treatment Facilities Overlay District. The Planning Department participated in the National Pollutant Discharge Elimination System (NPDES)Task Force.This task force supports the efforts for the town's requirement to file a permit on a yearly basis with Massachusetts Department of Environmental Protec- tion as part of a Federal NPDES program. Representatives from various town departments meet to coordinate the information that is required by this permit program. The Planning Department also coordinates and manages the Technical Review Commit- tee(TRC)meetings,which are held at the request of applicants who may want to open a new business,construct a new commercial building,or residential development in North Andover. The TRC meetings include representatives from several town departments and provide ap- plicants with a venue to ask questions about the permitting process. In FY14, the Planning Department hosted eighteen TRC meetings for various projects, ranging from new restau- rants, spas, manufacturing, ice cream shop,wine shop, new school administration building, and a new fire station. The Planning Department goals for FY 15 include the following: • Preliminary efforts for a Multi-Use Path.This path will provide a recreational facility for walker and bicyclists throughout the town. • Update Subdivision Regulations and Watershed Special Permit requirements to make all regulations consistent with the new Stormwater Regulations required by the Envi- ronmental Protection Agency and the town's NPDES permit. • Work with the Affordable Housing Trust to implement plans to provide housing for "special needs"populations,including veterans,the disabled and the elderly.The Trust is exploring collaborations with local service providers to provide housing for these populations.This is an on-going effort The Planning Board meets regularly, as needed, two Tuesdays of every month and con- ducts Saturday morning site visits.Planning Board meetings are held at the Town Hall Board of Selectmen Meeting Room located at 120 Main Street. All interested persons may appear and be heard. Persons needing special accommodations and/or those interested in viewing the application materials should contact the North Andover Planning Department at (978) 688-9535. — 46 — BOARD OF TRUSTEES Maria Galvagna Mesinger, Chair E.William Hansen, Vice Chair Stevens Memorial Library Raymond Vivenzio, Treasurer Eva Hamori,Secretary Ann Haltmaier Cavanaugh William B. Duffy,Jr. Peter J. Lafond Mary Rose Quinn, Director To the Citizens of North Andover: The Trustees of the Stevens Memorial Library herewith present their 106' Report, com- mencing with the report from the Library Director, Kathleen Keenan. Report of the Library Director To the Trustees of the Stevens Memorial Library, I hereby submit the 106'h Report of the Director which is for the period January 1,2014—December 31,2014. The Library's Mission Stevens Memorial Library serves as a resource for our entire community, providing informa- tional, educational, and enrichment services. The Library is our gateway to the Merrimack Valley Library Consortium:35 neighboring libraries with over 3,000,000 items to read,watch or listen to.It also is our gateway to the entire Massachusetts public library system:370 librar- ies with an additional 30,000,000 items. The Library's impact on the community can be divided into three key areas: providing children with literacy-rich environments, beginning at birth; enriching lives by providing materials and experiences that make North Andover a great home town; and helping patrons acquire new skills and provide the resources to grow and prosper. Partnerships Stevens Memorial Library services are greatly enriched by its partnership with several groups and the support of many individuals. The dedicated Friends of the Library group is an in- tegral partner in all our programming activities throughout the year. Summer at the Stevens programs(June through August for children,teens and adults) and Sunday at the Stevens pro- grams (September through May) are a direct result of their hard work. The Stevens Estate was a generous host for our second summer of Family Movies under the Tent.We coordinated with the North Andover schools to insure school summer reading materials were available and with the Youth and Recreation Dept. to increase the variety of fun family activities in Town. Other summer program partners include the Massachusetts Library System reading program specialists, the Massachusetts Board of Library Commissioners, and the Boston Bruins. Once again, the North Andover Arts Council provided financial assistance in sup- port of several special events. We are grateful to the Friends,to our volunteers,and to our many partners who made 2014 both rewarding and memorable. Library Events and Programs Library staff worked joyously to provide an even wider range of regular activities, from story times for babies,toddlers, and the younger elementary patrons to elementary and middle school book clubs.Monthly adult book discussion groups were lively.The Writers Group met regularly and enjoyed November's NalloWriMo (National Novel Writing Month) workshops. Memoir writing workshops with the Senior Center were well attended.Sunday afternoons were busywith movie matinees or special visitors,such as authors Saloma Miller Furlong and Esther Ehrlich. — 47 — Summer at the Stevens programs put the fun in science, with children's visitors bringing in "creepy crawlies" and "animal invaders", and others teaching us about the chemistry of bubbles.Authors like Ted Reinstein and Anthony Amore gave insights into their work while farmer Dave Valentine explained the basics of seed saving and Lorraine Falcone shared tips on organizing ourselves.The Rebel Shakespeare Co., a teen theater group, chose Stevens as one of the few places to visit,performing As You Like It in the Rotunda.The Delvena Theatre Co.presented Meet Julia Child to round out the season. We are appreciative of the work of numerous other authors and performers who presented programs throughout this past year that entertained, educated, and inspired our audiences. 2014 by the Numbers By the Numbers data is based on FY2014(July 2013.June 2014) as reported to the Massachu- setts Board of Library Commissioners. In an average Stevens week: • the Library was open 7 days for 61 hours, Labor Day through Memorial Day, and 5 days in the summer(2,903 hours/year). • 3,392 visitors came into the building(176,385 visitors/year). • 1,281 visitors used a public computer(66,612 sessions/year). • 3,979 items were borrowed(206,941 items/year). • 1,164 items came and went through interlibrary loan services(60,559 items/year). • 591 information and reference questions were answered by staff(30,744 questions/ year). • 17 events were held in a meeting room (923 events/year). Library Initiatives • With progress in Library building improvements made over the past few years, the Library's focus shifted to technology.The existing patron public internet system had a major upgrade. Later in the year, the Library was able to expand the system, adding several more computers in the Teen Room,bringing the total of public stations to 30. WiFi reception was also improved with the relocation and addition of WiFi access points. • Digital signage was added to support news and publicity efforts. • With the continued increase in demand for digital resources, the Library apportioned more of its funds to purchase e-books, online subscriptions to sources like ValeeLine and Morningstar, Zinio e-magazines, and Freegal downloadable music. • A visible,though not physical,alteration in the Library came with the many changes in staffing. Several staff retired or had the opportunity to advance in their careers.They are greatly missed. Looking Forward The Stevens Memorial Library looks forward with enthusiasm to 2015 as we build on and enhance our programs, services, and collections for the residents of North Andover. Key will be the development of a 2015-2020 Long Range Plan. Respectfully submitted, Kathleen Keenan Library Director Report of the Board of Trustees The Board of Trustees offers its sincere thanks to the Library staff who continue to provide the public with exceptional Library services. The Board also extends its appreciation to the many volunteers for their behind-the-scenes activities; their efforts enable staff to provide — 48 — and focus on direct services to the patrons.The Board extends a special thanks to the Friends of the Library whose numerous hours of volunteer service generate the funds that allow the Library to enhance its services beyond the annual budget.Their extremely popular book sales draw customers from around the region.It is the cooperation of these many groups and indi- viduals that made so many of the programs and services mentioned above possible. The Library staff experienced several changes in 2014 and the Board wishes to acknowl- edge the dedicated service as well as leadership given by staff who are on new paths. Our deepest appreciation goes to Mary Rose Quinn,Irja Finn, Susan Bergman, and Betsy Miller. Library Director Mary Rose Quinn leaves us after seven years for an exciting opportunity as the Head of State Programs and Government Liaison at the Massachusetts Board of Li- brary Commissioners.Assistant Library Director Kathleen Keenan became Interim Director during the search for a new Director.In December,the Board of Trustees appointed Kathleen Keenan as the new Director. The Board continues to oversee the investment and expenditure of Endowed Funds and Special Gifts.Proceeds from donors purchase books,furnishings,and equipment and are tra- ditionally used to enhance the building and grounds, and the services, programs, collections and activities of the Library.The Annual Financial Report for Fiscal Year 2014(July 1,2013 —June 30,2014)is included below. Respectfully submitted, Maria Galvagna Mesinger, Chair Ann Haltmaier Cavanaugh E.William Hansen,Vice Chair William B. Duffy,Jr. Raymond Vivenzio,Treasurer Peter J. Lafond Eva Hamori, Secretary Financial Report Summary The Trustees made some banking changes in FY2014 to streamline money management and reporting. The Trustees held three accounts at Sovereign Bank, which became Santander Bank.These accounts were: • Endowment Checking,4ccount. • Money Market Account. • Copier/Special Gifts Checking,4ccount. The following accounts were closed and their balances transferred into the Santander (Sovereign)Endowment Checking,4ccount: • Santander(Sovereign)Money MarketAccount. • Santander(Sovereign) Copier/Special Gifts Checking,4ccount. A new account used to manage the copier at Library sourced by the Trustees was opened at TD Bank: • TD Bank Copier Checking,4ccount. A Town revenue account(2051658.1.6.0610.0000.0.483000)was added to manage dona- tions for memorial books (aka special gifts).This change puts all records for these donations in a single accounting system. . The Endowment Checking Account remains at Santander. From time to time, money from Endowment Funds,held through Fidelity Investments, is transferred to Endowment Check- ing Account. — 49 — Contents • Endowment Funds Summary: Fidelity Investments • Santander(Sovereign)Endowment Checking Account Activity:6/23/2013—6/22/2014 • Santander (Sovereign) Money Market Account Activity: 7/1/2013 — 6/30/2014 Santander(Sovereign) Copier Special Gifts Account Activity: 7/1/2013—6/30/2014 • TD Bank Copier Checking Account Activity: 7/1/2013—6/30/2014 • Total Trustee Accounts Expenditures FY2014: combined Santander Endowment Checking and TD Bank Copier Checking Accounts Note: • The Santander Endowment Checking Account (account number ending in 4327) monthly statements do not end on the last day of the month. For consistency and a proper year end summary, a request to Santander is needed to adjust the statement dates.This can be accomplished by either extending one statement to the 30th/31st or provide a one time statement for the 23rd of the month to the 30th/31st which would then re-align the dates going forward. ENDOWMENT FUNDS SUMMARY: FIDELITY INVESTMENTS Value as of June 30, 2014 $721,723.30 HISTORICAL FUNDS VALUE UNITS PERCENTAGE PRESENT VALUE Charles Whitney Davis Fund $10,000.00 6742.8727 2.83% $20,455.13 Carrie Millar Dushame Memorial Fund $250,000.00 94195.3193 39.59% $285,750.29 Phillips Fund $2,550.00 2369.8682 1.00% $7,189.22 Berrian Fund $1,000.00 1184.9341 0.50% $3,594.61 Katherine Currier Osgood, Gayton Osgood, and Mary Ellen Osgood Fund $50,000.00 18482.2386 7.77% $56,067.60 Elizabeth P. Stevens Fund $10,000.00 9479.4692 3.98% $28,756.85 Nathaniel/Elizabeth P. Stevens Fund $25,000.00 21325.3808 8.96% $64,692.53 Dale Stevens Fund $13,500.00 11849.3373 4.98% $35,946.07 Anne Bradstreet Fund $1,500.00 1184.9341 0.50% $3,594.61 M.T. Stevens, Abbot Stevens, Mary O. Tyler Stevens & Reynolds Fund $61,682.81 71096.0137 29.88% $215,676.39 $425,232.81 237910.3679 100.00% $721,723.30 Value per Investment Unit 6/30/14 $3.03359 — 50 — SANTANDER(SOVEREIGN) ENDOWMENT CHECKING ACCOUNT ACTIVITY: 6/23/2013 —6/22/2014 Beginning Balance 6/23/2013 $19,767.16 Receipts from Money Market Account $1,534.46 Copier/Printer Account Transfer $12.54 Friends of the Stevens Memorial Library $0.00 Annual Appeal $1,985.00 Total Receipts $3,532.00 Expenditures Collections(Books & Periodicals,e-content) $433.58 Building Maintenance $485.97 Supplies & Equipment $572.71 Professional Services—Audit $0.00 Community Outreach/Fundraising $1,752.76 Programs $4,405.20 Professional Development/Training $2,646.47 Bank Service Charges $0.00 Total Expenditures ($10,296.69) Ending Balance 6/22/2014 $13,002.47 SANTANDER(SOVEREIGN) MONEY MARKET ACCOUNT ACTIVITY-7/1/13-6/30/14 Beginning Balance 7/1/2013 $1,532.98 Transactions $0.00 Balance Subtotal $1,532.98 Interest Earned $1.48 Tax Withheld $0.00 Balance as of 3/13/14 $1,534.46 3/13/14 Closed account & transfer to Santander Endowment Checking ($1534.46) Account Balance 6/30/2014 $0.00 — 51 — SANTANDER (SOVEREIGN) COPIER/SPECIAL GIFTS CHECKING ACCOUNT ACTIVITY-7/1/13-6/30/14 Beginning Balance 7/1/2013 $1,747.95 Receipts Copier & Computer Printouts $0.00 Total Receipts $0.00 Expenditures Copier/Printing lease $250.50 Copier/Printer Supplies $1,372.41 Books $112.50 Periodicals $0.00 Total Expenditures ($1,735.41) 3/13/14 Closed account &transfer to Santander Endowment Checking ($12.54) Ending Balance 6/30/2014 $0.00 TD BANK COPIER CHECKING ACCOUNT ACTIVITY-7/1/13-6/30/14 Beginning Balance 7/1/2013 (Account opened 10/7/13) $0.00 Receipts Copier & Computer Printouts $4,984.62 Total Receipts $4,984.62 Expenditures Copier/Printing lease $1,756.73 Copier/Printer Supplies $2,569.53 Books $0.00 Periodicals $0.00 Total Expenditures ($4,326.26) Ending Balance 6/30/2014 $658.36 — 52 — COMBINED TD BANK&SANTANDER COPIER CHECKING AccoUNTs-7/1/13-6/30/14 Santander Copier Account: 7/1/13-3/13/14 TD Bank Copier Account: 10/7/13-6/30/14 Beginning Balances 7/1/2013 Santander Copier/Special Gifts Checking Account $1,747.95 TD Bank Copier Checking Account $0.00 Total Combined Beginning Balance $1,747.95 Receipts TD Bank Copier& Computer Printout Deposits $4,984.62 Santander Copier & Computer Printout Deposits $0.00 Total Receipts $4,984.62 Expenditures Santander Copier/Printing lease $250.50 TD Bank Copier/Printing lease $1,756.73 Santander Copier/Printer supplies $1,372.41 TD Bank Copier/Printer supplies $2,569.53 Santander Books $112.50 TD Bank Books $0.00 Total Expenditures ($6,061.67) 3/13/14 Closed account & transfer to Santander Endowment Checking ($12.54) Total Combined Ending Balance 6/30/2014 $658.36 — 53 — TOTAL TRUSTEE ACCOUNTS EXPENDITURES EY2014: COMBINED SANTANDER ENDOWMENT CHECKING AND TD BANK COPIER CHECKING ACCOUNTS Beginning Balances 7/1/2013 Santander Endowment Checking Account $19,767.16 Santander Money Market Account $1,532.98 Santander Copier/Special Gifts Account $1,747.95 TD Bank Copier Checking Account $0.00 Total Combined Beginning Balance $23,048.09 Receipts Santander Endowment Checking Account $1,985.00 Santander Money Market Account $1.48 Santander Copier/Special Gifts Account $0.00 TD Bank Copier Checking Account $4,984.62 Total Combined Receipts $6,971.10 Expenditures Santander Endowment Checking Account $10,296.69 Santander Money Market Account $0.00 Santander Copier/Special Gifts Account $1,735.41 TD Bank Copier Checking Account $4,326.26 Total Combined Expenditures ($16,358.36) Transfers In Santander Endowment Checking Account $1,547.00 Santander Money Market Account $0.00 Santander Copier/Special Gifts Account $0.00 TD Bank Copier Checking Account $0.00 Total Transfers In $1,547.00 Transfers Out Santander Endowment Checking Account $0.00 Santander Money Market Account $1534.46 Santander Copier/Special Gifts Account $12.54 TD Bank Copier Checking Account $0.00 Total Transfers In $1,547.00 Combined Ending Balance 6/30/2014 $13,660.83 — 54 — Veterans' Services North Andover-Boxford District Edward V. Mitchell, Director of Veterans'Services The Department of Veterans' Services is to advocate on behalf of all the Commonwealth's Veterans and provide them with quality support services and to direct an emergency financial assistance program for those Veterans and their dependents who are in need of benefits and services. In 1946, the Selectmen of the Towns of North Andover and Boxford voted to form a district and appointed a District Director of Veterans'Services to carry out the provisions of Chapter 115 of the General Laws.The Veterans Service Officer(VSO)is located at the North Andover Town Hall on Main Street.Walk-ins are always welcome however;we recommend calling first to ensure a representative is present. Office Hours Monday, 8:00 a.m.to 4:30 p.m. Tuesday, 8:00 a.m.to 6:00 p.m. Wednesday, 8:00 a.m.to 4:30 p.m. Thursday, 8:00 a.m.to 4:00 p.m., open for urgent matters only! Friday, 8:00 a.m.to 12:00 p.m., open for urgent matters only! Office phone(978) 688-9525 or via e-mail emitchel@townofnorthandover.com Services Provided as Directed by the Commonwealth of Massachusetts • Financial assistance • Medical Services • Educational&Burial Benefits • Property Tax Exemptions • Veterans War Bonus • Gold Star Mothers&Fathers Annuities • Obtaining copies of discharges • Replacement of Service Medals • Burial Internment for Veteran and Spouse • V.A. Home Loans and education benefits • Life Insurance and Widows Pensions • Veterans Disability Comp&Pensions • V.A. Hospitals/Clinic Enrollment&Prescription plan All of these programs are subject to eligibility according to State and Federal guidelines. NORTH ANDOVER/BOXFORD VETERANS SERVICES DISTRICT BOARD MEMBERS Director of Veterans Services: Edward V. Mitchell Boxford Town Manager:Alan Benson North Andover Town Manager:Andrew W. Maylor — 55 — Expenditures The Veterans Services salary and office expenses total$400,031.80.The Town of Boxford ap- portionment for salary and office expenses total $17,512.00.As December 31st The Town of North Andover expended a total of$211,288.63 for emergency/financial assistance with 75% of this expenditure being reimbursed by the Commonwealth of Massachusetts. Enhancements To help offset the increased demand for benefits and services we obtained a part-time office administrator. To accommodate the increased staffing level the Veterans Service office was relocated to the ground floor and all case files were transferred to digital media. Are you a veteran or a widow(er) of a veteran? Is your income less than$1,915 per month(single applicants)with cash assets below 85,000? Married Veterans,is your combined income below$2,585 month&cash assets below 89,800? Primary residence and automobiles are not counted as assets If so you may be entitled to REIMBURSEMENT of your MEDICAL EXPENSES and/or FINANCIAL ASSISTANCE Under Massachusetts General Law Chapter 115 Call your Veteran's Service Officer for more information (978) 688-9525 — 56 — Youth & Recreation Services Department Rick Gorman, Executive Director The Youth&Recreation Services Department,under the direction of Rick Gorman contin- ued to provide superior quality services and a full complement of programs. The programs consisted of support programs, court-related programming, student leadership programs, family and individual services as well as a host of social, recreational and adventure services. In 2014,Youth &Recreation Services serviced 3,300 youth. 2014 also marked the 26th an- niversary of our founding in 1988.2014 also marked the 14th year the doors of the Joseph N. Hermann Youth Center have been opened. The outstanding professional staff consists of Rick Gorman—Executive Director, Molly Malandrino—Support Services Coordinator,Micaela Tetrault—Social Programs Coordina- tor and Josh Peters—Recreation Coordinator. Demi Tetrault came on board as a full-time employee on July 1,2014. Demi's position is Program Coordinator/Administrative Assistant. After 14 years the Joseph N.Hermann Youth Center continues to be a lively and safe place for the youth of North Andover.The center is open six days a week for middle and high school aged youth. On Saturday afternoons we have also built in time for 4th/5th graders to experi- ence the center in preparation for when they enter the middle school. The Youth&Recreation Director also chairs the Town Fields Committee.The position is responsible for permitting fields,working with our youth sports programs and developing short and long term plans for use and development.In the fall of 2014 we brought online the Dale Street Athletic Field and we completed the McEvoy/Chadwick redevelopment project. Work now begins on preliminary plans for redevelopment of the Middle School Athletic Complex. 2014 also marked the fifth year of raising funds for new fields/facilities.We have now raised 8250k. In January 2014 we opened an outdoor skating rink on the basketball court for all town residents.2014 also saw our biggest and best summer.Over 20 summer programs were offered at the Center, along with Children's Shows and Concerts on the North Andover Common as well as a busy season at Stevens Pond. We are extremely pleased that the department gained a full-time position in 2014. The Center also was lucky to have so many adult volunteers assisting in areas of fundraising,mar- keting,public relations,finance,budgeting,technology, and customer service. The Youth&Recreation Services Board of Directors and Joseph N.Hermann Youth Cen- ter,Inc.also ran the 6th annual"Taste of North Andover"fundraiser.The event provides food, fun, and live and silent auctions.In December the Annual Fund appeal went to all residents. The Center continues to offer part-time employment for the youth of North Andover, as we employed 110 kids during the summer and an additional 30 during the school year. The lifeline of Youth&Recreation Services is to provide support services.This past year we saw a record amount of requests for services and I am pleased to say we were able to meet all requests. Our Thanksgiving Drive and Holiday Gift Drive also serviced the most families ever. I am once again pleased and proud of our constant mission of helping the youth and families in this community.The following are the services we provided during the last year: Adventure Programs Student-Run Programs • Challenge Course • NAYRS News • Skateboard Park • Youth Council • Rock Climbing Programs • Senior Youth Council • Hiking/Walking Programs • Teenco Dance Committee • Outdoor Ice Skating • Helping Hands • Ropes Course Groups • Community Involvement Programs • Brooks Sunday Night Skating • Walk for Youth Event — 57 — Student-Run Programs (continued) Social/Recreation Programs • Grandstand (continued) • Front Office • Youth Center Classes • YouthLeadership Committee • NAYS/NABC 4th Grade Basketball • Tournament of Champions Support Services • Event of the Day • High School Girls Group • Extensive 8 week Summer Programs • Middle School Girls Group • Crusaders Special Olympics • Youth Tracking and Outreach Basketball • Holiday Giving Program • 4 on 4 Fall Soccer Tournament • Thanksgiving Drive • 4 on 4 Winter Volleyball Tournament • Personal Care Drive • Video Game Tournaments • Crisis Intervention • Skateboard Lessons • Job Bank • Middle School Service Groups • Collaboration with Local • Pick-up Beach Volleyball Therapists/Counselors • Street Hockey League • Collaboration with NAHS • Youth Center Field Trips Advisory • Information and Referral Services Special Events • Participation in Community • Annual Spring Carnival Collaborative Initiative (CCI) • Youth Appreciation Day • Collaboration with high school • End of School Party Student Assistance Team (SAT) • Half-day school events • First Aid/CPR classes • Turkey Toss • Simon Potter Project • End of Summer Celebration • NAYS/YMCA 3 on 3 Tourney Social/Recreation Programs • Youth Center Fundraisers • 7th/8th grade Teenco Dances • Welcome Back to School Event • 6th grade Teenco Dances • 6th Grade Orientation Program • 8th grade Dress-up Dance • Big Screen Movie Nights • Basketball Tournaments • Various Events • Boys and Girls Flag Football • Joseph Walsh Summer League Court-Related Programs • Black Knights Winter League Juvenile Diversion — 58 — Jeffrey J. Coco, Director John P. Savastano, Deputy Director Emergency Management Paul J. Gallagher, Police Chief Andrew Melnikas, Fire Chief Connor Lincoln,Senior Operations Officer William Hastings, Senior Communications Officer Emergency Management's duties include supporting public safety incidents,hazardous mate- rial incident support, regional emergency planning committee coordination, auxiliary police support, mass causality incident support, incident evacuation, state and federal resource co- ordination, emergency communications, disaster response planning, natural and manmade disaster response and mitigation. North Andover Emergency Management activated its emergency operations center(EOC) and/or responded to three "State of Emergency"incidents this year,which included the Oc- tober snowstorm.A heartfelt note of thanks to Joyce Bradshaw and the Town Clerk's office, the Town Manager's staff and the Health department for their support and volunteerism dur- ing and after the October snowstorm;their efforts greatly helped minimize the impact of the multitude of issues we faced with this incident. Our RACES communicators continue to support monthly communications tests with MEMA to maintain communications proficiency and readiness in event of emergencies.We also conduct weekly testing of our primary communications to insure readiness during emer- gency situations. The RACES,as well as the Emergency Management operations staff contribute countless hours of voluntary services to the town in support of any events that may require communica- tions coverage or crowd control and public safety assistance during incidents. We thank Mr. Benjamin Farnum for his continued support allowing us the use of Boston Hill for one of the repeaters and we are indebted to Andover Emergency Management direc- tor/Police Chief for his allowing the use an antenna and our alternate repeater on Holt Hill in Andover. The placement of these two repeaters and antennas allows us fairly large com- munication coverage of the town. We continue to recruit operations officers and RACES communicators holding valid Ra- dio Amateur Licenses from the Federal Communications Commission(FCC).We are also on the lookout for volunteers to join our Auxiliary Police group.Auxiliary Police candidates must be over the age of 21 and able to pass a background investigation conducted by our local police department.All town residents meeting these criteria are eligible to apply regardless of race, sex or creed. Interested individuals may contact the undersigned at any time.We continue to support, at their requests,the police and fire departments during other incidents. As always our thanks to the many town boards and departments including Town Man- ager,the Finance Board,Honorable Board of Selectmen,DPW,Police,and Fire departments who can always be depended on to support our efforts including all MEMA,FEMA exercises and real emergencies that may arise. My personal thanks to the Emergency Management Deputy Director,John Savastano, Operations Staff,headed by Connor Lincoln,Transportation Officer Neil Hamel, the Com- munications staff, headed by William Hastings and the RACES communicators and all the Emergency management Officers;without your dedicated support and all the voluntary ser- vice you provide to our community, our agency could not support our community. I greatly appreciate your time and effort. — 59 — Fire Department Andrew V. Melnikas, Fire Chief In the year 2014,we welcome two new members to the Fire Department, brought about by both a transfer and a retirement.As a department we continued to make great strides both in the areas of fire equipment and vehicles.In October,we took ownership of a new Ambulance, one which will assist us in serving the townspeople more efficiently in the coming years. The progress made in the year 2014 was highlighted by groundbreaking for a new Fire Headquarters in November.This new facility will have state of the art accommodations and was long overdue. I would be remiss if I didn't thank all those involved in seeing this dream come to fruition. NORTH ANDOVER FIRE DEPARTMENT INCIDENTS Reported Building Fires 514 Medical Emergencies 2311 Hazardous Conditions Response 167 Service Calls 409 Good Intent Calls 57 False Alarms 74 Total 3847 — 60 — Police Department Paul J. Gallagher, Chief During 2014 the North Andover Police Department, once again, committed to provide ex- cellent safety and security to the residents of North Andover. One trend in 2014 that was disturbing to all members of the Department was the ongoing rise in opioid overdoses. Start- ing in February of 2014, North Andover Police joined other departments in the Merrimack Valley to join regional task forces and work at the street level of narcotic distribution problem. Patrol Officers adopted a zero tolerance for drug use and abuse, especially while operating a motor vehicle. Charges of Operating under the influence of drugs were prevalent, as they were across Essex County.The Police Department is currently working with the District At- torney's Office to find new and innovative ways of dealing with the opioid epidemic and work with families whose loved ones are in need of assistance in fighting this addiction. The Police Department saw two senior Officers retire in 2014. Officer Tracy Castiglione and Officer Charles Fucca both left after a total of more than 65 years of service. Officer Fucca was the court liaison officer and Officer Castiglione, our first woman officer, is best known as pioneering the D.A.R.E and School Resource Officer programs.With the vacan- cies, and others from the prior year, five new recruits graduated from the Reading Police Academy during 2014. These officers were formerly reserve officers who were hired as full time candidates when the position opened. These new Officers were given some additional training and were promptly placed on the streets to begin their careers. Our 6th annual National Night Out was our biggest and best to date.We conservatively estimated over 4000 people attended the event and our local businesses gave out information and samples. Our State Representatives,District Attorney,local officials, and other dignitar- ies made appearances and were very impressed.The Police Department continues to stress the importance of Police-Community relations and the positive impact it has on the community. The North Andover Police Department received several grants for traffic and alcohol enforcement.Our Anti-Crime unit was utilized to conduct enforcement of a pedestrian cross- walk violations and underage alcohol enforcement. The plan was to send a strong message to North Andover and Merrimack College minors that the Town of North Andover takes underage drinking very seriously. The Department participated in the"Drive Sober or Get Pulled Over"4th mobilization with a grant from EOPSS. Officers worked four hour shifts between the hours of 8:00 p.m. to 4:00 a.m.,Thursday through Sunday.The goal was to identify impaired operators and get them off the streets.This grant was successful in not only identifying impaired operators,but also numerous civil violations were issued. The Department utilized the 2013-2014 Pedestrian/Bicycle Safety Grant from EOPSS to educate motorists regarding their responsibilities with regards to pedestrians in cross walks, and enforce crosswalk violations as well as other motor vehicle infractions. A decoy pedes- trian was used in crosswalks around several of the schools, as well as the downtown area, and uniformed officers stopped any violators. The majority of violators were issued either a civil citation or written warning, along with an informational handout regarding pedestrians, excessive speed and stopping distances.The use of this grant was timed to coincide with the start of school in North Andover. School safety was another priority in 2014. With school violence on the rise, Officers worked with Fire Personnel and now with some school administration.The training focuses on identifying threats, communicating with public safety and the school department through a unified command system and keeping the students and staff as safe as possible while provid- ing an environment that is conducive to learning. The police department partnered with North Andover CAM to place a studio in our Community/Emergency Operating Center.This will enable to broadcast live television such as snow emergencies,public forums or town board meetings to our residents. — 61 — The Department received a donation from the North Andover Dunkin Donuts to pur- chase five new police bicycles, lights and helmets for the Bicycle Patrol Unit to replace out- dated equipment.The Bicycle Patrol Unit is part of the Department's commitment to Com- munity Policing due to the officers being easily accessible to citizens for personal interaction and their ability to patrol areas not available to police cruisers, such as Weir Hill.This Unit has also been used to assist with the growing number of road races and other events being held in North Andover, including the first ever marathon, half-marathon and duathlon. Again, I want to thank you for your continued support of the of North Andover Police Department.The officers are dedicated to keep North Andover a safe community. 2014 INCIDENT MAJOR TYPES Accident No Injury 569 Accident w/Injury 113 Assault 20 Assault and Battery 62 B & E 36 B&E into MV 224 Disturbance - General 425 Domestic 142 Driving Under the Influence 50 Drug Violation 25 Harassment 53 Harassment Order Violation 10 Identity Theft 41 Larceny 354 Larceny of Motor Vehicles 11 MV Accident Hit & Run 93 Neighbor Complaint 66 MV Stop 7,623 MV Citations 3,670 Total Call For Service(Not All Listed Above) 34,071 — 62 — Division of Public Works Bruce D.Thibodeau P.E., Director Division of Public Works Water Supply & Distribution Distribution In FY14, 1,030 feet of 8-inch ductile iron pipe was installed.The water distribution system now consists of 148.84 miles of main pipe; 6 twelve-inch check valves;4 twelve-inch altitude valves;5 twenty-four-inch butterfly valves;556 twelve-inch,4 ten-inch, 1109 eight-inch, 1879 six-inch, and 4 four-inch gate valves;with 1,531 public hydrants. Size of Pipe (Inches) 24 12 10 8 6 4 Length of Pipe (Feet) 1,917 275,601 7,615 412,459 80,979 684 There were installed in FY14 either wholly or partially, 55 water services. Ten fire hy- drants were replaced and thirteen water main breaks or leaks were repaired. Hydrants were inspected,repaired,flagged and painted as necessary. Statistics Relating to Distribution System Kind of Pipe Cast Iron,Ductile Iron,HDPE Sizes 3"to 24" Extended During the Year(Feet) 1,030 Discontinued(Feet) 0 Total Number of Hydrants Added During the Year 12 Total Number of Hydrants Now In Use 1,531 Number of Stop Gates Now In Use 3,565 Number of Stop Gates Smaller Than 4 Inches 0 Number of Blowoffs 6 Range of Pressure on Mains 20 to 148 psi Kind of Service Pipe Cement Lined, Lead Lined, Cast Iron,Ductile Iron Size of Service Pipe 3/a"to 10" Number of Service Taps Added This Year 55 Number of Service Taps Now In Use 7,718 Number of Meters Installed 780 During FY14, our water distribution system was extended 1,030 feet by developers in a new road called Stanton Way and a small section of Abbott Street near the Sargent School. Phase V of our Meter Replacement program was awarded to Five Oaks Construction of Gro- ton,MA.A total of 400 meters were installed by Five Oaks,while 380 meters were installed by Water Department personnel. Water Supply & Distribution Drinking Water Treatment Plant(DWTP) & Booster Pumping Stations Throughout this fiscal year many repairs and improvements were made within the DWTP, Booster Pump Stations(BPS) and Storage Tanks.The following are just a few of the projects completed: • Replaced the roof on the main building; • Replaced spent carbon in two filters with virgin activated carbon; • Replaced the HVAC with a new efficient unit; • Replaced the VFD's on the Raw water pump#3 and Finish water pump#1; — 63 — • Relined the second 3200 gal chemical tank for the storage of FINISHED WATER PUMPED FY 2014 Sodium Hydroxide used in pH control; • Bradford standpipe was drained MONTHS MILLION GALLONS (MG) and repairs completed on the fill July 2013 129.117 line support system; August 131.523 Replaced forty valve actuators September 106.283 on the carbon filters; October 87.517 Replaced the lights along the November 71.917 driveway and in the foyer of the December 2013 76.093 Water Treatment plant with new January 2014 76.669 LED energy efficient lights; February 67.154 Passed the requirements to be March 75.245 recertified for bacterial sam- April 74.365 pling in our lab. May 90.115 Replaced the Fire Suppression June 2014 127.840 system in the Control Room • Replaced two gear boxes on the TOTAL 1110.838 flocculation mixers • New plastic shrouds were man- Average daily consumption-3.04 MG/day ufactured and installed over the Max day pumping—June 6, 2014: 6.011 MG sedimentation and flocculation Largest pumping period—July 24-30, 2013: gear boxes to protect them from 35.84 MG the elements. • Recoated concrete roof of Back Wash tank Cross Connection Control Program (CCCP) The program is ongoing annually in accordance with the Department of Environmental Protection, Division of Water Supply 310 CMR 22.22 Regulations.The Town's Water De- partment is ultimately responsible for all actions regarding this program to insure that it is managed and maintained correctly according to Federal &State Laws.No cross connection violations were detected in FY 13 thus the program is extremely successful in keeping our water safe from outside contaminated sources. Six hundred and fifty seven(657) devices were successfully tested. Sewage Collection &Treatment Collection In North Andover, sewage is designed to flow in three divisions: The East Side Drainage Area with its trunk sewer following Lake Cochichewick to the Merrimack River; the West Side Drainage Area with two trunk sewers: one on Waverly Road,Mass Ave., Beverly Street and Sutton Street, the other along the Shawsheen River; and the Central Drainage Area bounded by Waverly Road,Middlesex Street, and Main Street.All sewerage from the Town is treated at the Greater Lawrence Sewage Treatment Plant before being discharged to the Merrimack River. There are 90.70 miles of sewers in the North Andover Sewerage System with 5,758 house connections. — 64 — Size of Sewers Length of Sewers Size of Sewers Length of Sewers (inches) (feet) (inches) (feet) 36 440 15 2,889 30 10,179 12 42,584 27 4,171 10 11,177 24 19,359 8 277,763 21 7,939 6 82,154 18 19,992 In FY14,on Sutton Street from Methuen Ave to the Airport Entrance,Commonwealth Construction replaced 1,197 feet of 8-inch clay pipe with 12-inch PVC pipe. We are also planning to upgrade another section of Sutton Street from Charles Street to High Street. Likewise,the existing 8-inch clay pipe will be upgraded to new 12-inch PVC pipe.Upgrading these areas on Sutton Street is necessary to accommodate increased flow rates from the future Reas Pond Sewer Station,to be built in FY16. Four main line back-ups were cleared by our Sewer Crew using the high-powered jet truck. Sewer Pump Station (SPS) The Town has the responsibility of maintaining twenty-two sewer pump stations (SPS). These stations are scattered throughout the town and assist the low lying areas in pumping the sewerage to a higher location so that it will eventually reach the Greater Lawrence Sani- tary District for treatment. As with anything mechanical,repairs were made to the stations throughout the year.The sewer personnel oversaw the installation of new level controller sticks in several of the stations to prevent overflows;and the installation of a surge buster at the Forest View sewer pump sta- tion to relieve pressure in the system plus all wet wells were pumped and cleaned. Solid Waste Collection and Disposal Solid Waste Northside Carting of North Andover completed the fifth year of a five-year contract for col- lection and transportation of solid waste. A total of 8000 tons of solid waste was delivered to the Wheelabrator facility on Holt Road. The total was a bit higher than previous years, however,the recycling tonnage also increased from the previous fiscal year. The enforcement of waste bans on visible recyclables in the trash continued to reduce the potential overall tonnage. The seventh annual Earth Day cleanup was a success. 150 volunteers removed 80 cubic yards of trash from roadways and public areas. Recycling The Sustainability Committee's (formally Solid Waste Advisory Committee) efforts to pro- mote and enhance recycling continued to be very successful in the past fiscal year. Programs to improve education and outreach, increase school recycling volumes, collect all numbered plastic curbside, and not allow visible cardboard and paper to be placed in the trash have ap- preciably decreased solid waste tonnage and increased recycling tonnage. The change over to weekly collection and to single stream,which means that all recycling materials may be put out for collection into one covered container marked as recyclables, has been very successful and increased recycling participation by 2%per year.Appliance pick-up and operation of a drop-off center for recycling at the TBI Facility, 210 Holt Road by our contractor, Northside Carting continues. Further, the DPW continues to provide drop off three days per week for yard waste at the Cyr Recycling Facility on Sharpeners Pond Road. A total of 2700 tons of yard waste, paper, glass, tin, aluminum and plastic were recycled in this fiscal year. — 65 — Approximately 400 residents participated in two household hazardous waste days con- ducted by Clean Harbors. Fall leaf pickup, spring brush cleanup and Christmas tree pickup were also conducted in this fiscal year. Highway & Engineering Numerous upgrades were made to the storm water drainage system to eliminate flooding onto private property and on roadways. A non-funded mandate has been promulgated for storm water pollution elimination and is being administered through the Environmental Pollution Agency(USEPA). Final permits and requirements have not been issued however, based on the work of the Engineering De- partment the DPW is in compliance with the draft regulations and has implemented proce- dures to stay in compliance. The amount of Chapter 90 money the Town receives annually is approximately$800,000. This can not address all the needs in a Town with approximately 145 miles of roads. In order to seek additional funding, through Local Funds to supplement the Chapter 90 allotment,it became necessary to develop a program that will identify needs, project costs, and assist to prioritize the improvements of roads in Town. Therefore, DPW sought outside assistance through an experienced consultant to prepare pavement management plan which investigated all roads in Town, rated condition of roads, identified repair methods, and costs. The work included a physical inspection of all roads in the spring of 2014. The software allows us to develop projects and identify potential funding sources. Using the pavement Management process we have been following a program that estab- lishes a priority for how funds are directed to types of roads.The arterials and collector roads are improved with Chapter 90 money and then local funding is directed to the local streets such as neighborhood streets that never seem to get improved.We have followed this program now in FY 2014 during which we received approval for funding of$390,000. Below is a list of the streets improved in FY 2014 which amounted to approximately 6 miles of improvements. PAVED ROADWAYS FY 11 Street Location Pembrook Road Mifflin to Greene Davis Street Main St.to Pleasant St Ash Street Berry to Campbell Campbell Road Ash to Salem Herrick Road Middlesex to Waverly Silsbee Road Herrick to Lyman Phillips Court Osgood to Pleasant Johnson Circle Johnson to dead end Raleigh Tavern Lane Entire length Lisa Lane Johnson to Kieran Wayne Street To end Bradford Street Route 125 to Settlers Ridge School Street Main to dead end Pond Street Great Pond Rd to Boxford town line Boston Street Old Cartway to Andover town line Engineering The Engineering Department is involved in major endeavors, along with the day-to-day re- quests for information from town boards, businesses, developers, and residents. The Dept. provided reviews, comments, and engineering input on various projects before the Planning Board, Board of Appeals, and Conservation Commission. — 66 — Design projects produced or worked on this past year were the construction of the new McEvoy softball fields and playground, drainage on Appledore St., major federal grant for reconstruction of Green and Parker Streets to include sidewalks,Water&High Street street- light replacements, downtown parking analysis and design, designs for drainage into and out of Becky's pond off of Peters St., and completion of the Dale St. athletic fields. The Department is continuing with its efforts to convert paper plans to electronic format and file them within its database. Some of these plans have been imported into our GIS. Engineering has also been working with MA Dept. of Transportation and neighborhood residents on a grant for Safe Routes to Schools.The grant is 100%federally funded and will pay for design and construction of. sidewalks on Green St., Parker St. and school property, crosswalks,the realignment of the Greene Street intersection with Mass Ave,the intersection and the addition of green spaces at the intersections.Approximately 3400 feet of sidewalkwill be created.The design is complete and should go out to bid in FY 2016. Forestry &Tree Maintenance Our skyworker bucket truck was active in this fiscal year. A total of 200 trees were pruned, 25 were removed and 25 new trees were planted. Approximately 2000 Christmas trees were chipped in January and a large amount of brush was chipped during the curbside spring clean- up conducted in April. Our tree department crews again worked with the various Committees in many ways throughout the year: Christmas lights were put up in the Old Center Common as well as the downtown area which made for a wonderful and festive display,flags were put up along Mass. Ave and Main Street for the 4th of July celebration and Veterans Day,and wreaths were hung along these same streets for the Christmas holiday. Playground Maintenance The playground system consists of Grogan's Field, 4.7 acres; Drummond Field, 5.0 acres; American Legion Beach, 1.4 acres; Carl Thomas Playground, 4.7 acres; Aplin Playground, 1.8 acres;McEvoy Playground,4.1 acres,Reynolds Playground 3.0 acres;the Gallagher Field at the Town Farm 2.5 acres, the Cyr Recreation Area, 10.3 acres and the new Foster Farm Fields 6.0 acres.This brings the total number of acres to 43.5. Parks & School Grounds Maintenance The parks area consists of the Center Common, 8.1 acres;training grounds, 1.9 acres;Memo- rial Park,2.7 acres;Old Burying Ground, 1 acre;Historical Society Plot;Farrington Burying Grounds; and 20 small plots at street intersections—a total of 15 acres. All park areas were maintained, and mowed an average of once per week. All triangles at various locations were maintained and mowed. School ground areas consists of the Bradstreet School, 1.20 acres;Thomson School, 3.00 acres; Kittredge School, 6.57 acres; Franklin School, 8.77 acres; Sargent School 15 acres; North Andover Middle School and Atkinson School, 38.34 acres; and the High School, 44.52 acres—a total of 117.40 acres. Baseball fields, track and field facilities, field hockey, soccer, lacrosse, and football fields were maintained for competitive school events and for youth and adult athletic events. Our thanks to all the volunteer organizations for funding programs, making improve- ments and for providing their time and effort in maintaining and improving our playing fields. — 67 — James Lyons, Chairperson Commision on Disability Issues Nancy Murphy, Vice Chairperson Donald Stewart, Subcommittee Chair/ First Officer Phyllis A.Jones, Secretary Who We Are We are a community educational group established to advance the community interests of cit- izens with disabilities who live in North Andover.Our Commission is made up of individuals with and without disabilities who are providing an important civic duty for the town.We are all volunteers appointed by the Board of Selectmen and Town Manager.We are encouraged by the enthusiasm the members bring to The Commission as we volunteer our time and skills to represent and ensure equal access and treatment for people with disabilities. The North Andover Commission on Disability Issues (NACDI) continues to work to- ward educating the local community(and building citizen support) concerning the needs and interests of people with disabilities-4 quorum was achieved at most of our meetings this year. There were a couple of meetings that we had to re-schedule due to some absolutely terrible weather, and serious barriers we had encountered. The Commission has partnered with other groups to assist with PowerPoint trainings, workshops, focus groups, and other forums to help ensure that the people acquire a basic un- derstanding of The Americans with Disabilities Act(ADA),IDEA,Fair Housing, and other disability related laws. Finding ways to get people to understand their obligations under the ADA is an ongoing, constant struggle for those of us who have disabilities.We appreciated interested persons coming to our meetings. Some of the recommendations we have made for improvements include: updating the Town's antiquated ADA Transition Plan,providing awareness trainings,installing direction- al signs,acquiring audible pedestrian signals, adapting counters and doorways,alternate print formats (i.e., Braille, audiotape, Screen readers, computer disc, etc.) ramps, etc. Overall, mu- nicipalities and businesses are willing to make these changes because they realize that making goods and services fully accessible increases their activities and sales. Among this years' accomplishments Among the major initiative this year included the 2014 Accessible Parking Signs Project.The Commission has fully completed the arduous process of donating free signs to supportive businesses in town.We called this the 2014 Accessible Parking Signs Project.This initiative has indeed gone a long way toward helping all of us stop people without a disability from con- sidering or thinking about going into an accessible(HP)spot. The accessible signs are helping people with disabilities in our town,and serve as a deterrent to breaking the law.The signs tell drivers:Warning, $200.00 Fine for parking in this HP space. The Commission,in partnership with the Town had nicely promoted the initiative by pur- chasing the new signs for interested merchants in town.The project and the signs we donated were only for the North Andover businesses. We have finished delivering these signs to business owners, and asked that they have it posted at their place of business,which they all did.This will help further promote the busi- ness, and shows their gesture of good will, demonstrating their interest and commitment to serving customers with disabilities at the business on an equal opportunity basis. Equal ac- cessibility is good business!As we all know,the number of people with disabilities is growing daily on an alarming rate. During our regularly scheduled meeting in April, the Commission voted to request the Town Manager to use a small amount of our tiny budget this year for the purpose of buy- ing signs to be used throughout town for the express purpose of decreasing the improper use of accessible parking spaces. Special thanks to Nancy Rose, of the Boston Development Group (North Andover Office Park); Sam Yameen of Sam's Mobil Mart, (Mass Ave), Chris Witkowski, Bertucci's Restaurant; Terry Edwards, North Andover Burger King; Henrique — 68 — LaCosta, General Manager, Staples; Bruce Thibodeau,North Andover Director of Depart- ment of Public Works; and Board of Selectmen Chairman, Richard Vaillancourt. They have shown tremendous sensitivity,and concern for the interests ofresidents with disabili- ties. Additionally,by working together with our spirit of mutual cooperation, and by posting the signs at their places of business the merchants have indeed demonstrated the gesture of good will, and demonstrated their commitment to serving customers with disabilities on an equal opportunity basis. We successfully donated all of the signs this summer,and fall,2014.Commission members worked very hard to make this happen. Statistics show that,for example:In a recent New York Times report, at least 227 workers at a Florida International Airport were caught parking near airport terminals with illegally obtained disabled parking permits.Many were carrying heavy baggage at the time they were questioned. Commissioners joined with disability rights advo- cates, seniors, and others to recognize The Americans with Disabilities Act(ADA)Anniver- sary at the State House.The Americans with Disabilities Act protects the right to services and activities for people with disabilities in the most-integrated,least-restrictive setting.The U.S. Supreme Court's Olmstead decision states that the Americans with Disabilities Act guarantees the right to choice &freedom to live in the community.We educated people about Olmstead Act and spoke out to ensure that we maintain the right to live in the community,and to choose. We educate people on the ADA as well as state regulations and all pertinent matters related to people with disabilities. We strongly emphasize that the Town needs to update its ADA Transition Plan that is sorely outdated, and no longer pertinent.We educate in all critical areas, i.e., municipal obligations, employment, transportation, public accommoda- tions and access to programs, facilities. People with disabilities are faced with restrictions and a diversity of issues. At this time, more than 59 million Americans have a physical or mental disability and this number is growing fast! People with disabilities are a group that has been faced with restrictions and limitations.We have had a history of unequal treatment and political powerlessness.We educate against the stereotyped assumptions that people with disabilities encounter that are not indicative of our ability to participate in, and contribute to society and their community. Our State House,One Ashburton Place,and other testimonies this year helped the Com- mission's understanding of transportation needs, concerns and ideas for improving these critical services utilized by persons with disabilities, persons with low incomes, etc. al. To- gether, Commissioners recommended service improvements and modifications to maintain or enhance current service levels and delivery methods while achieving efficiencies and cost- savings; as well as other reforms, initiatives or improvements to paratransit services in the Commonwealth that will enhance the quality,customer-service or efficiency of these services. During July,interested Commissioners attended the annual ADA Day Celebration at the Dunn Pond State Park in Gardner, MA. This event has grown in popularity year over the years and The Town's Commission, and The State were pleased to support the event. This year approximately 150 people from Municipal Commissions, and other groups attended. The Department of Conservation&Recreations Universal Access program was present with accessible kayaks, and other outdoor activities. Our Mission is to educate North Andover's disability needs for the town and its resi- dents, visitors and families with disabilities. Commissioners have provided technical assis- tance, training interested persons and Town Officials how to do access surveys, community education, trainings, meetings, and other activities to provide technical assistance with The Americans with Disabilities Act(ADA),The Mass Architectural Access Board(AAB) Reg- ulations, etc. We completed a brief exterior access survey at a supportive business in Town. We surveyed a newly constructed, shopping center, and found that they have done a good job in achieving ADA compliance. We continue delivering community education for the town on ADA awareness needs/is- sues,including offering training and proper transition plan development for interested Town Officials; Posting Public Service Announcements (PSA's) to inform residents about needed resources such as loans available for Assistive Technology for all interested residents. For — 69 — example we advised the Town to prominently Post public notice of the ADA compliance at all town buildings and schools where the public is invited. School Departments, especially when accepting federal funding, are also clearly required to be able to produce, and follow-up on a modern ADA Transition Plan. What We Are Doing At Present We had worked effectively in partnership with The Licensing Commission to inform Town businesses of their access needs and find that that usually they are cooperative in getting their businesses, parking areas, goods and services up to code.Without any notice, the Licensing Commission has stopped sending us the Licensing requests, and the listing like they did up until two years ago.We were never informed why.The dedication and hard work of the Town Clerk's office, and the North Andover Department of Public Works are much appreciated. Additionally, Commissioners attended the March Legislative Reception, sponsored by The Mass Developmental Disabilities Council at the 2nd Floor Grand Staircase Hall in the State House.We joined with other Commissioners, advocates,family members,legislators, agency heads and staff at this important event. Speakers included State Senators and Representa- tives, State Secretaries, Commissioners and Directors.This was an ideal opportunity where commissioners met with other Commissions, family members, advocates, state agency heads, and legislators to educate them about our needs. Commissioners participated in the fall Back to Business Expo &Job Fair at the Merrimack Valley Chamber of Commerce. This was an effective marketing and promotional opportunities held in Merrimack Valley this year that included an extensive multimedia advertising campaign-newspaper/television/radio. The Commission would like to express our thanks to all participants, Legislators, Board Members,volunteers and staff for this tremendous show of support for the disability commu- nity of the Greater Merrimack Valley,as we join together to celebrate our combined strength. We continued providing disability related Technical Assistance (TA) and community ADA inclusionary activities to heighten awareness and educate our community about the Americans with Disabilities Act(ADA), Federal Fair Housing,IDEA, and other civil rights laws. Commissioners provided community awareness activities for our ADA technical as- sistance services.In fact, a significant trend that stands out as exemplary this year is found in the high volume of community outreach activities The Commission provided.This is due to our Commissioners, support from The Board of Selectmen, and all who assisted in organiz- ing dozens of folks (Commissioners, consumers, and Municipal staff) to actively participate at numerous major community education events that were held this year. Why should all businesses and town public offices be ADA compliant?Not to mention possible revenue loss, all businesses are required to comply with the ADA... since 1990.The ADA is the national civil rights legislation adopted to prohibit discrimination against people with disabilities. Title III of the ADA prohibits discrimination on the basis of disability that would prevent persons from having full and equal use and access to community businesses such as rests, hotels,golf courses, grocery stores, professional offices, theaters, etc.The law mandates that Municipalities, as well as businesses: Remove architectural barriers in facilities when "readily achievable" meaning easily car- ried out without excessive cost or expense or difficulties. • Make reasonable modifications in policies, practices and procedures to ensure equal access to people with disabilities. • Provide aids and services to ensure effective communications with people who have sensory disabilities(visual,hearing,learning disabilities, etc.). Every year, the numbers and needs of people with disabilities increase. We link the in- creased demand for services to an increase in consumers needs in northeastern Massachusetts. Another example of a highly successful community education activity (as described in the — 70 — Commission Bylaws) included the Annual Massachusetts Statewide Disabilities Education Day that was held at the Statehouse on March 21st.In solidarity,we educated our elected of- ficials that The Municipal Commissions provide valuable educational activities to the citizens of the Commonwealth.Our Consumers educated their public officials about their needs,and how Commissions, and other key programs help them. Commissions provide services and initiate activities that benefit all of the citizens of the Commonwealth by: • Educating public officials about the needs for providing services to assist people with disabilities to live in the communities such as North Andover. We testified before the Safety Committee that was headed by; Senator James E. Timilty at that time. As concerns a vitally important bill that would give the Architectural Access Board (AAB) the ability to make employee-only spaces accessible,gives The Board more in harmony with the ADA to make accessible buildings, and would require more designated ac- cessible parking, and generally make the1414B statute better match the,4mericans With Disabilities Act(14D14). The Architectural Access Board promulgates rules and regulations designed to make public buildings accessible to and safe for use by persons with disabilities. We testified that we are a consumer-controlled Disability Commission providing aware- ness and education to people with disabilities who wish to live independently in the com- munity.The Commissions on Disability are a community of people who educate their own home communities in order to join together to create an all-inclusive community that is free of architectural, communication, attitudinal, as well as economic barriers for all people with disabilities. The Commissioner's philosophy states that people with disabilities are the best determinants of our own needs and service choices. Last year,the intent of Senate Bill 1183 was to extend the Board>s jurisdiction over"public buildings"to include employee areas to bring the Board>s enabling legislation into compliance with the Americans with Disabilities Act.For many years we have witnessed the need for this measure to be passed in Massachusetts, and I feel it is long overdue.The Board>s jurisdiction must be expanded in order to submit its regulations to the Department of Justification for certification as being substantially equivalent to Title III of the ADA. In September, The Commission co-sponsored a 2 day Community Access Monitors (CAM) Training along with The following Commissions: Haverhill, Andover, Newbury- port,Lowell, and other area commissions.The CAM training is provided by The Massachu- setts Office on Disability (MOD). There are Community Access Monitor Trainings being held throughout the Commonwealth all throughout the year. Community Access Monitors play an essential role in encouraging access improvements.While they do not have legal en- forcement authority, monitors have proven to be highly effective advocates. Monitors are a full partner in the implementation process by coordinating advocacy efforts with municipal disability commissions,ADA Coordinators,building inspectors, and others. Being a Community Access Monitor requires knowledge of access laws and regulations, understanding of the range of organizations that have responsibilities under both state and federal regulations, skill in surveying and advocacy, and the ability to be persuasive and per- sistent.Through this training program, participants gained the knowledge and skills needed to become an effective accessibility advocate. Accessibility in Massachusetts in mandated by complex and far-reaching state and federal laws, whose enforcement depends upon the ac- tive involvement of the disability community. In close partnership with The Massachusetts Office on Disability(MOD) we encouraged people to get involved; every individual makes a difference. The law is behind this. Through your efforts, and the collective effort of the Community Access Monitor Program of MOD and the whole advocacy movement,you will help bring about change.If there are questions, or you are interested in attending an upcom- ing training,please feel free to contact Jeffrey Dougan at(800) 322-2020 Among The Commission's most productive community education gatherings this year included an activity completed with the partnership of the Town manager's office where we — 71 — submitted a written request to the Town of North Andover, as well as the State of Massachu- setts (Department of Transportation -DOT) to install audible traffic pedestrian signals at all of the 8 intersections in Town along route 125.The Audible Pedestrian Signal(APS) is a device that communicates information about pedestrian crossing in non-visual format such as audible tones,verbal messages, and/or vibrating surfaces.The Audible Pedestrian Signals are quite necessary for individuals (with a number types of disabilities) to be able to safely cross the busy streets in an accessible way. The APS is a vitally important technical device that provides an audible alarm whenever the signal goes red to notify pedestrians who are blind, and have various other disabilities when it is safe to cross the street. Now,the state intersections along Route 125,(at these criti- cal sites where pedestrians and others who need the device on order to safely cross the street) have the opportunity to become safer, as well as more user friendly. It is our opinion, since individuals with disabilities have hereby requested that the devices be installed at these various sites,it is a requirement of The ADA that the State, and the Town install them. Future Missions: What we hope to accomplish in F.Y.2015 There are many issues which we plan to address in F.Y. 2015 as we enter the new year. We continue to strongly advise the Town to complete a proper, and complete ADA Transition Plan.Then,we plan to continue educating citizens of North Andover to the needs of residents with disabilities.This includes people with all types of disabilities, and of all ages. It is dif- ficult for individuals without disabilities to understand even the simplest barriers that can be encountered such as getting into a store with stairs or even a high threshold,going along side- walks which are cluttered, cars blocking sidewalk curb cuts, etc. All people should be aware of the telephone relay service,how to provide print-reading materials in alternate formats(i.e., Braille, large print, computer disc, etc). People with psychiatric and many other disabilities encounter stigma and prejudice in our daily lives. We are attempting to make people more aware of these issues and others,which are very complex.We aim to hold true to our motto, which is "To educate, inform, and heighten awareness-for the good of all North Andover citizens." Conclusion We meet on the third Thursday of the month in the conference room of the Town Hall at 5:15p.m.We have had and will continue to have very informative guest speakers. All persons interested in learning more about the Commission, The ADA or any other disability related issues are welcome to come to our meetings which are held the third Thurs- day of the month at 5:15 at the Town Hall.If you are interested,please call Nancy,she can be reached by calling the Town Manager's number. — 72 — Cathy Hoog, PHM, LMHC, LMFT Housing Authority Ted Snell, Chairman Stephen Long, Treasurer Mary Beth Soucy, Assistant Treasurer Edward Capodilupo Madeleine Sutcliffe, State Appointee As the Executive Director of NAHA,I am pleased to submit on behalf of the North Andover Housing Authority Board of Commissioners, the Authority's annual report.This report has been prepared in accordance with Chapter 121B of the General Laws of Massachusetts,which govern housing authorities. The Housing Authority owns and manages 297 income based rental units of Public Hous- ing in North Andover.The Authority-owned units are distributed in six elderly and two fam- ily developments,which consist of: State funded Fountain Drive 40 units of elderly/handicapped Bingham Way 42 units of elderly/handicapped Foulds Terrace 52 units of elderly/handicapped O'Connor Heights 20 units of elderly/handicapped 10 units of congregate housing Veteran's Housing 14 two bedroom family units 10 three bedroom family units Ashland Street 4 three bedroom family units Federally funded: McCabe Court 45 units of elderly/handicapped Morkeski Meadows 60 units of elderly/handicapped Public Housing units administered by the North Andover Housing Authority are subject to the following income limits: State Federal 1 person household $45,500 $44,750 2 52,000 51,150 3 58,500 57,550 4 65,000 63,900 5 70,200 69,050 6 75,400 74,150 7 80,600 79,250 8 or more 85,800 84,350 The state minimum age requirement for elderly is 60, or handicapped.The federal mini- mum age requirement for elderly is 62, or handicapped. The minimum head of household age for family housing is 18 or over. Neither program has an asset limit. Income from assets is added to total income and that must remain within the above thresholds. North Andover residents and people who work in North Andover receive a preference for these programs. In addition to owned units, the Authority also administers rental subsidy programs through the use of Federal and State funds.These programs are designed to provide a subsidy for housing to eligible elderly/handicapped, families, and single individuals. The Authority currently administers 133 Section 8 Housing Choice Vouchers and 2 Mass Rental Vouchers (MRVP). — 73 — The Authority offers the Family Self-Sufficiency Program(FSS)to those individuals par- ticipating in the Section 8 Housing Choice Voucher Program. FSS is a HUD funded social service program designed to promote employment and increase assets for families receiving Section 8 rental subsidies. During a five to seven year period, participants work individually with a case-manager on such goals as education,money management,job training, childcare, transportation, and homeownership education. A key component of the FSS Program is the establishment of an escrow or savings account that accumulates as earned income increases. Families receive the funds after they successfully complete the program. Many FSS families have used their escrow to purchase homes. FSS is unique because of its individual approach to supporting families and is one of the few asset building government programs in existence. Future Plans/Goals • Modernization improvements to housing authority properties • Educate residents on available community resources and services • Promote community and intergenerational activities for the elderly • Partner with the private and public sector to maximize services and resources for residents • Provide financial education to housing authority residents and Section 8 participants to promote financial independence • Promote home-ownership education for public housing tenants and Section 8 participants The North Housing Authority is dedicated to serving the housing needs of the community. The mission of the North Andover Housing Authority is to promote adequate and afford- able housing, economic opportunity, and a suitable living environment free from discrimina- tion. Working together with the staff, board of commissioners, residents, and community members,the North Andover Housing Authority strives to create neighborhoods where resi- dents continue to be a valuable part of the community. — 74 — North Andover Public Schools Schools opened for the 2013/14 school year on September 3, 2013, as the district welcomed 4,807 students in grades Pre-K through 12 into our town's schools.The high school increased its enrollment by 45 students, and the Thomson School added an additional kindergarten classroom, thus increasing the kindergarten enrollment by 37 students over the 2012/13 school year at the Thomson School. School Building Projects School building projects, approved at Town Meeting, continued to progress.The Kittredge gym construction,which began in early October of 2013,was completed in the spring of 2014. While the approved funding supported the building of the new gym, the Kittredge Elemen- tary School Gymnasium Capital Campaign was established through community volunteers as a multi-tiered fundraising initiative to support the town's significant capital investment to enhance the quality of the building. A formal dedication of the gym will take place in De- cember of 2014. In addition, construction began on the district's main office project in the spring of 2014, built on the site of the former police department,and occupancy is expected in early spring of 2015 with full occupancy projected for the summer of 2015. Strategic District Improvement Plan Using guidance from the Department of Elementary and Secondary Education (DESE), building principals and administrators completed Phase 1 of North Andover's Strategic Dis- trict Improvement Plan which encompasses the following objectives and initiatives:Engaging and motivating students, professional practice, and curriculum and resources. Action steps, progress to date, and evidence documentation were recorded for each initiative. Phase 2 will begin in September,2014. Teaching and Learning As a school district,North Andover continued to do well on the Massachusetts Comprehen- sive Assessment System (MCAS). In 2014, the district's MCAS tested students scored an aggregate score in English Language Arts (ELA) of 92.2 percent and 87.1 percent in Math- ematics (Math). ELA and Math had a Median Student Growth Percentile (MSGP) of 56 percent that is 5 percentage points higher than the State set target of 51 percent. In North Andover, 80 percent of our ELA students scored proficient or advanced com- pared to the State average of 69 percent.Additionally, 71 percent of our math students scored proficient or advanced compared to the state average of 60 percent.In ELA,23 percent of our students scored advanced compared to the State average of 18 percent; and in Math, 35 per- cent of our students scored in the advanced range compared to the State average of 28 percent. During the spring session of MCAS testing, all but the Sargent School participated in a pilot of PARCC (Partnership for Assessment of Readiness for College and Careers) testing, which is a new platform of assessments being developed that is intended to replace MCAS. The PARCC assessments will be scrutinized for possible adoption over the next two years. Teachers from all three levels attended a Model Curriculum Unit workshop as well as the Department of Elementary and Secondary Education's Curriculum Summit.These curricu- lum units will be used for ideas on activities and teacher resources. North Andover teachers participated in 7 half-day curriculum days and two full days during the school year where they were given to opportunity to learn more about the Model Curriculum Units, as well as focusing on students as mathematicians, collaborating around the writing process, using Google Apps, collaborative practice and looking at student work and data to inform instruction. In January, Dr. Elizabeth Englander, Director of the Mas- - 75 — sachusetts Aggression Reduction Center,gave a presentation to all teachers on anti-bullying training, and Ralph Fletcher, children's author and teacher of writing, presented to elemen- tary teachers on helping them use wiser ways to teach writing. Elementary Schools The official elementary enrollment(Pre-K through 5)for the 2012/13 school year was 2,250, with the largest increase, 40 students, at the kindergarten level. Average class size in grades K 2 was 23.80, and for grades 3-5, the average class size was 24.06. The median student growth percentile for North Andover elementary schools, which measures how much the student changed relative to other students statewide with similar scores in previous years, remained high at 50 percent or higher in four of the five elementary schools. Atkinson School was honored with a visit by State Secretary of Education Matt Malone in March,2014,who spoke in a number of classrooms.The Atkinson School organized a num- ber of service projects for the benefit of those in need during the 12/13 school year, and the pledges connected mathematics specific to each grade level. Over the past three years, At- kinson families and students have collected over$24,000 for St.Jude's Hospital for Children. At the Franklin School, the "Franklin Flyer," a student newspaper written by and for stu- dents, re-emerged in the winter of 2014 with a number of interviews of Franklin and district staff, including the Superintendent and Director of Food Services for North Andover Public Schools. Students partnered with students at the Leahy School Lawrence, and made fleece scarves to send to them, along with gloves and activity books as part of the Joey Middlemiss, ,411 You Need is Love mission. Kittredge School students were able to display their artwork on their school's website with their own publication of"Kangaroo Creations." Students at the Kittredge School continued the spirit of giving back by shipping"Care"packages to the troops stationed overseas. The Sargent School began Phase I of the new playground project in October, 2013, with Phase II and III expected to be completed by September,2015.As part of Sargent's"salute to Veterans," students wrote letters of support for armed forces personnel stationed throughout the world. The Thomson School hosted a Holiday Fair in November where families enjoyed games, crafts, photo shots, face painting, balloon animals and treats. In January, Thomson School students in grade 5 made snow men and delivered them to the Senior Center as part of their January theme of"filling our buckets"with kind deeds." Middle School Middle School enrollment increased by 4 students over the previous school year for a total of 1,184 students in grades 6, 7 and 8. NAMS students continued to show a strong academic performance with 85 percent of students scoring proficient or higher in ELA and 71 percent proficient or higher in math. Equally strong was the student growth percentile with 55 per- cent in ELA and 60 percent in math. During the 2014/15 school year,NAMS teachers will continue their work on curriculum and instructional alignment. In 2013/14, significant progress was made with common as- sessment alignment. Teachers designed and implemented common assessments, discussed student results, and reviewed grading practices.To increase rigor for all students to achieve at higher levels of learning,teachers will continue their work with adopting higher order think- ing skills into their daily lessons during the 2014/15 school year. NAMS continued to be in the forefront of anti-bullying activities and was chosen as one of only four schools in Massa- chusetts to participate in the Office Depot Foundation bullying prevention program "Be the Difference, Speak Up Against Bullying!" — 76 — High School The High School experienced an increase in enrollment over last year by 12 students for a to- tal of 1,377 students in grades 9 through 12 for the 2013/14 school year.High School students continue to excel as 96 percent of students scored proficient or higher in ELA, 83 percent of students scored proficient or higher in math, and 86 percent of students scored proficient or higher in science/technology/ engineering. The student growth percentile in ELA was 57 percent and 46 percent in math.The percent of members of the Class of 2014 reporting that they were going to college after graduation was 92.7. NAHS students received a number of academic awards in the 2013/14 school year. The Abigail and John Adams Scholarship was awarded to 85 students who received scores of 4dvanced and Proficient on the grade 10 MCAS tests in ELA and Math.Eight NAHS students were recognized by the National Merit Schol- arship Program, and 74 NAHS students received scholar awards by demonstrating college- level achievement through AP courses and exams. Athletics North Andover High School athletic teams had another impressive season this fall.The boys' Golf and Soccer teams were Division 2 North finalists, and the Cheerleading, Boys' Soccer, Girls'Volleyball and Boys'Golf teams all won Merrimack Valley Championships. Music Dept. During April vacation,four of NAHS'performing groups(Wind ensemble,Scarlet and Black Singers,Symphonic Band and Concert Choir)were given a"once in a lifetime"opportunity to travel to Walt Disney World to compete in the Festival Disney music competition.The Con- cert Choir and Wind Ensemble earned the "Best in Class" award for being the top group in their division,and the Wind Ensemble earned the"Bronze Award"for being the third ranked concert band at the festival. The North Andover Marching Band tied for second place in their division at the Regional New England Scholastic Band Association(NESBA) Championship on November 2,2013, with a score of 92.6, the highest NAHS has achieved in six years. Drama Guild The High School Drama Guild's 58 cast and crew members celebrated its 201h anniversary participating in the Fall Festival of Shakespeare in Lenox,MA,with a 90-minute adaptation of Shakespeare's Hamlet. Building Respectful Community (BRC) The district continues to strive to make social and emotional learning a necessary component of North Andover's Curriculum. Supporting this initiative,the Parent Resource Network pre- sented a free event for parents in the fall of 2013 entitled Best Friends/Worst Enemies:Friend- sbip Development,Popularity and Social Cruelty in Childhood with Michael Thompson, Ph.D., and in the spring another event entitled Nortb,4ndover C,4RES—Teen Substance,4buse,4ware- ness was sponsored by the Parent Resource Network.A number of events were held in the fall of 2013 as part of each school's R.A.I.S.E. activities to give back to the community, a few of which are listed under each school.In addition,a food drive at the Middle School was held for Bread&Roses in Lawrence, the Atkinson School PTO organized activities at the to give to needy North Andover families, a coat drive was held at the Sargent School and a Turkey toss at the High School to collect food items for the local food pantry,among many other activities. Service projects by students include a video produced by two Middle School students entitled "Hallway Pride."High school students participated in Special Olympics Track and Field Day and a"random act of kindness"initiative to impact their fellow students. — 77 — Associated Programs Scarlet Knights Academy Scarlet Knight Academy is an alternative to the traditional high school program, offering evening classes that are designed to meet the specific needs of individual students. Scarlet Knight Academy provides rigorous curriculum,delivered through dynamic instruction within small student-centered classes.With an emphasis on supporting the whole student,we strive to create an environment where individuals can take risks and challenge themselves both academically and personally. Students enrolled in the Scarlet Knight Academy will earn a North Andover High School diploma, and as such, must meet graduation requirements outlined for all students which includes passing the ELA, Math and Science MCAS exams. In addition, all Scarlet Knight Academy students must participate in the work-study/community involvement program. Stu- dents must participate in a minimum of ten(10)hours per week of paid or volunteer work. Community Programs Community Programs continued to offer before- and after-school programs for North An- dover students. Breakfast Club is located at all five elementary schools and serves a healthy breakfast beginning at 7 a.m. and runs until school opens at 8:25 a.m. Kids'Stop is located at Atkinson, Franklin, Sargent and Thomson elementary schools and the Middle School and is open until 6:00 p.m. A number of popular after-school activities hosted by Community Programs include the Robotics League,the Ski and Snowboard Program at Bradford ski area, and the EXCEL program, which offers an exciting medley of mini courses for elementary, middle and high school students. Noteworthy Events Both Kathy Callagy, former Bradstreet School Principal, and Anne Ericson,Middle School teacher,were inducted into the Teacher Hall of Fame and honored during Teacher Apprecia- tion Week. Each had taught over 35 years in North Andover schools. Mike Motherway, an engineering and technology teacher at the High School,was honored by Kronos,which spon- sored a national contest to identify teachers who inspired the workforce of the future. The Engineering and Technology program at the High School was awarded$10,000 by Kronos in Mike Motherway's name.The Pristash Award(parents who make a difference through their service to our schools) recipients for 2013/14 were Debbi Raffalli, Helen Pickard and Amy Mastromonaco. — 78 — School Enrollment Grade 01 02 03 04 05 06 07 08 09 10 11 12 KF KP PK Grand Total Atkinson 76 56 65 66 73 52 21 110 519 Franklin 71 96 99 99 103 55 20 543 Kittredge 46 48 51 54 54 34 16 303 Sargent 86 88 82 98 119 53 25 551 Thomson 44 52 46 56 54 55 20 327 I v NAMS 363 420 400 1183 I NAHS 324 338 367 321 1350 SKA 3 5 16 24 SSO 14 14 OOD 2 1 1 3 9 9 5 5 9 7 7 74 TOTAL4888 Annual Town Election March 25, 2014 PRECINCT % OF SELECTMAN 1 2 3 4 5 6 7 8 TOTALS VOTE SELECTMAN BLANKS 56 88 41 40 25 46 32 37 365 14% BLANKS DONALD B. STEWART 148 209 93 117 52 80 58 83 840 33% DONALD B. STEWART TRACY M. WATSON 126 169 89 106 44 113 55 92 794 31% TRACY M. WATSON ADAM P. SAPIENZA 63 88 43 88 33 78 69 58 520 21% ADAM P. SAPIENZA 00 I ID WRITE-INS 1 2 0 1 0 1 0 2 7 WRITE-INS PRECINCT TOTAL 394 556 266 352 154 318 214 272 2526 100% PRECINCT TOTAL PRECINCT % OF SCHOOL COMMITTEE 1 2 3 4 5 6 7 8 TOTALS VOTE SCHOOL COMMITTEE BLANKS 116 175 71 76 49 111 58 60 716 28% BLANKS BRIAN D. GROSS 138 187 98 139 50 102 71 101 886 35% BRIAN D. GROSS STANLEY B. LIMPERT 137 190 96 133 49 103 79 110 897 36% STANLEY B. LIMPERT WRITE-INS 3 4 1 4 6 2 6 1 27 1% WRITE-INS PRECINCT TOTAL 394 556 266 352 154 318 214 272 2526 100% PRECINCT TOTAL PRECINCT GREATER LAWRENCE GREATER LAWRENCE REGIONAL HIGH % OF REGIONAL HIGH SCHOOL REPRESENTATIVE 1 2 3 4 5 6 7 8 TOTALS VOTE SCHOOL REPRESENTATIVE BLANKS 37 72 25 32 25 43 22 22 278 22% BLANKS FRANK A. ROSSI 159 203 107 144 51 114 83 114 975 77% FRANK A. ROSSI WRITE-IN 1 3 1 0 1 2 2 0 10 1% WRITE-IN PRECINCT TOTAL 197 278 133 176 77 159 107 136 1263 100% PRECINCT TOTAL I 00 I Total Number of Registered 18,894 Voters Percent of Registered Voters 7% Voting Today Annual Town Meeting Minutes May 20, 2014 Town Moderator Mark S.DiSalvo called the 2014 Annual Town Meeting to order at 7:19 p.m. in the Auditorium of the North Andover High School 430 Osgood Street on Tuesday May 20,2014.America the Beautiful was performed by the North Andover High School Chorus. Moderator DiSalvo introduced Board and Committee members and participating Town Of- ficials.He summarized the Simplified Rules of Parliamentary Procedure which are printed in their entirety in the Report of the Finance Committee.There is no quorum requirement for any Annual or Special Town Meeting as established by Article 14 of the 1999 Annual Town Meeting and approved by the Attorney General on July 27, 1999. The Moderator DiSalvo explained the voting procedure using raised cards for voting and the implementation of the bylaw allowing votes to be declared by the Moderator for issues requiring a two-thirds vote at each session. Check lists showed a total of 335 voters present. A motion was made by Rosemary Connelly Smedile, 65 Greene Street, Chairman of the Board of Selectmen, seconded by Donald B. Stewart,52 Prospect Street,to dispense with the reading of the warrant,and with the reading of the constable's return of service of that warrant and further moved that the Moderator not be required to read articles of the warrant verbatim, but to be allowed to refer to articles by number and by subject matter;and further that amend- ments need not be read but are to be voted upon as displayed or otherwise provided,in print, to the voters in attendance.Motion unanimously approved. The 2014 Annual Town Meeting dissolved by unanimous vote at 9:00 p.m. on May 20, 2014 with all articles voted. Article 1. Reports of Special Committees. UNANIMOUS VOTE to hear and/or accept the reports of any appointed special committees,if any.No reports given. Article 2. Reports of Receipts and Expenditures. UNANIMOUS VOTE to accept the reports of receipts and expenditures as presented by the Selectmen in the 2013 Annual Town Report. Article 3. Authorization of the Town Manager or Superintendent of Schools Regarding Contracts in Excess of Three Years. UNANIMOUS VOTE in accordance with the provisions of Massachusetts General Laws Chapter 30B, Section 12(b),to authorize the Town Manager or the Superintendent of Schools to solicit and award contracts, except personnel contracts,for terms exceeding three years,including any renewal, extension or option,provided in each instance the longer term is determined to be in the best interest of the Town by vote of at least four(4) members of the Board of Selectmen or the School Committee, as appropriate. Article 4. Authorization to Accept Grants of Easements. UNANIMOUS VOTE to authorize the Board of Selectmen and the School Committee to accept grants of easements for access,water, drainage, sewer,roadway and utility purposes on terms and conditions the Board and Committee deem in the best interest of the Town. — 82 — Article 5. Authorization to Grant Easements. UNANIMOUS VOTE to authorize the Board of Selectmen and the School Committee to grant easements for access,water, drainage, sewer,roadway and utility purposes on terms and conditions the Board and Committee deem in the best interest of the Town. Article 6. Amend General Bylaws—Chapter 88 Dogs. UNANIMOUS VOTE to amend the Town of North Andover General Bylaws by deleting Chapter 88— Dogs and inserting the following Chapter 88—Animal Control in place thereof, CHAPTER 88—ANIMAL CONTROL 88-1 Animal Control Pursuant to the authority set forth in MGL Chapter 140, §§136A to 175,the following bylaw is enacted for the regulation of dogs in the Town of North Andover. 88-2 Definitions As used in this bylaw,the following words and terms have the following meanings: 88-2.1 Animal Control Officer(ACO) A person appointed by the Board of Selectmen in accordance with the provisions of M.G.L.Chap- ter 140, §§151 and 151A. 88-2.2 Destruction An order by the Hearing Authority that a vicious dog be destroyed in accordance with MGL Chapter 140, §§136A to 175 and Massachusetts Society for the Prevention of Cruelty to Animals guidelines. 88-2.3 Keeper A person,business, corporation, entity or society other than the owner,having possession of a dog. 88-2.4 Kennel A pack or collection of dogs on a single premises,including a commercial boarding or training kennel, commercial breeder kennel, domestic charitable corporation kennel personal kennel, or veterinary kennel. 88-2.5 Kennel License A special license issued to a kennel,which allows payment of a single fee covering all dogs in the kennel;with the kennel license,the kennel owner receives a special kennel tag for each dog in the kennel. 88-2.6 License A dog's registration, evidenced by a tag issued annually by the Town Clerk to the owner of each dog residing in North Andover and worn by the dog securely fixed to its collar or harness. 88-2.7 License Transfer The registration issued to a dog already licensed in another U.S.jurisdiction, after the dog moves into the Town of North Andover. 88-2.8 Licensed Period An annual period from January 1 through December 31. — 83 — 88-2.9 Muzzling Using a device that fits over a dog's mouth and prevents it from biting,but that does not cause any injury or interfere with the vision or respiration of the dog that wears it. 88-2.10 Nuisance Dog A dog that(i)by excessive barking or other disturbance,is a source of annoyance to a sick person residing in the vicinity; (ii)by excessive barking, causing damage or other interference, a reason- able person would find such behavior disruptive to one's quiet and peaceful enjoyment; or(iii)has threatened or attacked livestock, a domestic animal or a person,but such threat was not a grossly disproportionate reaction under all the circumstance. 88-2.11 Permanent Restraint An order issued by the Hearing Authority under Section 88-5,requiring vicious dog's keeper or owner to restrain it. 88-2.12 Restraint Limiting,restricting, or keeping an animal under control by means of a physical barrier(i.e., a leash, substantial chain or line,visible or invisible fence). 88-2.13 Running at Large A dog is running at large if it is not on the private property of its keeper or owner, or on private property with the express permission of that property's owner, or on a leash. 88-2.14 Temporary Restraint An order issued by the ACO under Section 88-4,requiring the dog's keeper or owner to restrain a nuisance dog or suspected vicious dog for thirty(30) days. 88-2.15 Vicious Dog A dog that,without provocation,bites a human being or kills or maims a domestic animal with- out provocation. 88-2.16 Other Meanings Any word or term defined in MGL Chapter 140§136A, and not otherwise defined here,is incor- porated by reference. 88-3 Vaccination,Licensing and Fees 88-3.1 Four or fewer Dogs License and vaccination requirements All dogs six months and older,while residing in the Town of North Andover,must have a license from the Town Clerk.To obtain or renew the license, each dog owner must annually present proof of a current rabies vaccination.When a veterinarian determines that vaccination is inadvis- able, the owner may present a veterinarian's certificate exempting an old or sick dog from vaccina- tion for stated period of time. New Dogs Within thirty(30) days of acquiring a dog six(6) months of age or older, each dog owner in North Andover must present proof of that dog's current rabies vaccination and obtain a license and dog tag from the Town Clerk. New Puppies Within six(6)months of a puppy being born,each dog owner in North Andover must present proof of that puppy's current rabies vaccination and obtain a license and dog tag from the Town Clerk. — 84 — New Residents A new resident who owns a dog six(6)months of age or older must license it within thirty(30) days af- ter moving into North Andover.The Town Clerk will issue each dog a transfer license upon the owner's surrender of a current license from another U.S.jurisdiction and proof of current rabies vaccination. The transfer license is valid until the next regular licensing period. Lost Tags and Replacement Tags Dog owners must replace a lost tag within three (3)business days of the loss,by obtaining a replacement tag from the Town Clerk. Tag exemptions for dog events and medical reasons: *A dog while actually participating in an official dog sporting or dog fancy event(if the event sponsors do not allow participants to wear tags)is exempt from the requirement that its license tag be affixed to its collar,provided its keeper has the tag at the event and available for inspection by the ACO. *When a veterinarian determines that a dog cannot wear a collar for medical reasons,the dog is exempt from wearing a tag until it recovers,from the requirement that its license tag be affixed to its collar, provided its keeper has the tag in his or her possession and available for inspection by the ACO. Annual Renewal Dog owners must renew each dog license annually.The annual licensing period runs from January 1 through December 31. License Due Date and Late Fee The application form for obtaining, renewing or transferring a license shall be available to each house- hold no later than December 31 each year.Dog owners must return forms and fees to the Clerk by March 1 (or the first business day thereafter,if March 1 falls on Friday, Saturday, Sunday or legal holi- day),Any license renewed after this date is overdue, and the owner must pay a late fee as determined by the Board of Selectmen in addition to the license renewal fee,The overdue license fee and the late fee may be added to the owner's tax bill or may be recovered through the imposition of a municipal charges lien on any property standing in the name of the dog owner,pursuant to MGL Chapter 40§58. License Fees The fees for licensing each dog shall be determined by the Board of Selectmen,The fees shall differen- tiate between neutered or spayed dogs, and non-neutered or non-spayed dogs.The fee for neutered or spayed dogs shall be less than the fee for non-neutered or non-spayed dogs. 88-3.2 More than Four Dogs License and Vaccination Requirements Anyone who owns or boards more than four dogs within the Town of North Andover must apply for and obtain a kennel license from the Town Clerk. (This requirement shall not apply to medical boarding by a licensed veterinarian practicing in the Town of North Andover.)To obtain or renew the license,the kennel licensee who is also the owner of the dogs must present proof of current rabies vac- cinations for each dog older than six months in the kennel.When it is off the kennel property, each dog in the kennel must wear a kennel tag,issued by the Town Clerk, affixed to its collar or harness. Kennel licensees who offer temporary boarding services must obtain valid proof that each dog in the kennel that is older than 6 months has received a current rabies vaccination which proof must be maintained in accordance with 88-3.1. New Dogs and New Puppies The kennel licensee who is also the owner of the dogs must report to the Town Clerk each new dog in the kennel within thirty(30) days of its acquisition, show proof of current vaccination, and obtain a kennel tag for that dog.The kennel licensee must show proof of current vaccination and obtain a tag for each puppy when it reaches six months old. — 85 — Inspection Process Before the Town Clerk can issue the kennel license,the Health Division Animal Inspector must inspect the proposed kennel,file a report on the inspection, and favorably recommend that the kennel meets all the following requirements: *The location of the kennel is appropriate for housing multiple dogs. *The location of the kennel on the property will have no significant adverse effect on the peace and quiet or sanitary conditions of the neighborhood. *The area provided for housing,feeding, and exercising dogs is no closer than twenty(20)feet to any lot line. *The area provided for housing,feeding, and exercising dogs is no closer than fifty(50)feet to any existing dwelling on an abutting lot. *The kennel will be operated in a safe, sanitary and humane condition. *Records of the numbers and identities of the dogs are properly kept. *The operation of the kennel will be consistent with the health and safety of the dogs and of the neighbors. Periodic Inspections Before a kennel license is renewed, and at any time they believe it necessary,the ACO and/or the Health Division may inspect any kennel.If the ACO or the Health Division determine that the kennel is not being maintained in a safe, sanitary and humane condition, or if the kennel records on the numbers and identities of the dogs are not properly kept,the ACO will report the viola- tions to the Hearing Authority for a hearing on whether to impose fines or revoke the kennel license. Kennel Review Hearings Within seven(7)business days after receiving the ACO's report of violations,the Hearing Au- thority will notify all interested parties of a public hearing to be held within fourteen(14) days after the notice date.Within seven(7)business days after the public hearing, the Hearing Au- thority shall revoke the kennel license, suspend the kennel license, order compliance, or otherwise regulate the kennel. Penalties Any person maintaining a kennel after the kennel license has been denied,revoked or suspended will be subject to the penalties in Section 88-7 of this bylaw. Annual Renewal Each kennel licensee must renew the license annually at the Town Clerk's Office.The annual li- censing period runs from January 1 to December 31. License Due Date Kennel license renewal forms will be sent to each licensed kennel no later than December 1 each year. Kennel licensees must return forms and fees to the Town Clerk by January 15 (or the first business day thereafter, if the 15t'falls on Friday, Saturday, Sunday or legal holiday). Failure to pay on time will result in a late fee due in addition to the license fee.The overdue license fee and the late fee may be added to the licensee's tax bill or may be recovered through the imposition of a municipal charges lien on any property standing in the name of the kennel licensee,pursuant to MGL Chapter 40, §58.Nothing in this bylaw shall prevent or abrogate the Board of Health's authority to license and inspect kennels in the Town of North Andover. Fees The fees for licensing each kennel shall be established by the Board of Selectmen. — 86 — 88-3.3 Conduct of Animals 88-3.3.1 Endangered Safety No animal keeper or owner shall allow its animal to bite,menace or threaten, all without provocation, so as to endanger the safety of any person.This section is not meant to preclude an animal from acting as a watchdog on its keeper's or owner's property. 88-3.3.2 Disturbing the Peace No animal keeper or owner shall allow the animal to disturb the peace of any neighborhood by making excessive noise without provocation.Noise is excessive if it is uninterrupted bark- ing,yelping,whining or howling for a period of time exceeding 15 minutes.This section is not meant to preclude a dog from acting as a watchdog on its keeper's or owner's property. 88-3.3.3 Damaging Property No animal keeper or owner shall allow the animal to damage public or private property or re alty. 88-3.3.4 Running at Large When not on the private property of its keeper or owner, or on private property with the ex- press permission of that property's owner, an animal must be on a leash. Public Gatherings-Leash Control Only Animals shall be prohibited at public gatherings permitted by the Town Manager or Town Manager's designee unless specifically allowed.Unless prohibited by the Board of Selectmen for any particular gathering, an animal may be at any other public gathering not otherwise specified in this bylaw only it if is on six-foot or shorter leash, and the owner or keeper of the animal shall not allow it to act in violation of this bylaw or other applicable law. School Grounds The School Principal shall have jurisdiction over the presence of animals on school grounds. Exception for Assistance Animals(Service Animals) Section 88-3.3.4 does not apply to any properly trained assistance animal or service animal while performing its duties. 88-3.3.5 Chasing No animal keeper or owner shall allow the animal to chase a person,motor-powered vehicle, human-powered vehicle, or animal drawing or carrying a person. 88-3.3.6 Dog Litter Every dog keeper or owner is responsible for expeditiously removing any dog feces the dog deposits anywhere except on its keeper's or owner's private property, on other private property with the property owner's permission.This provision does not apply to any assistance dog or service dog while it is performing its duties. 88-4 Animal Control Officer 88-4.1 Appointment The Board of Selectmen shall appoint an Animal Control Officer(ACO) under the provisions of MGL Chapter 140, §§151 and 151A to carry out the provisions of this bylaw and to perform such other duties and responsibilities as the Board of Selectmen or its designee may determine. — 87 — 88-4.2 Duties The ACO's duties shall include but not be limited to the following: *Enforce the Town of North Andover Animal Control bylaw and relevant State laws and regulations. *Explanation of bylaw violations. *Notification to the owner of unlicensed dogs. Issuance of Temporary Restraint Orders The ACO shall issue an order of temporary restraint to the keeper of any animal that is a nui- sance or that is awaiting a decision under Section 88-6 as to whether it is vicious.An order of temporary restraint is an order that the animal must be confined to its keeper's or owner's prop- erty when not on a six(6)foot or shorter leash or may be ordered to be sheltered at a local kennel or veterinarian facility at the animal owner's expense;muzzling will be at the ACO's discretion. It shall be in force for no more than thirty(30) days unless the ACO renews it in writing for sub- sequent thirty(30) day periods.The ACO shall rescind or stop renewing the order when,in the ACO's judgment,restraint is no longer required.The animal's keeper or owner can petition the Hearing Authority under Section 88-5.2 to rescind the order for Temporary Restraint. Issuance of an Order of Confinement The ACO may make arrangements for the temporary housing of any animal that is to be con- fined under the provisions of this bylaw.The housing may be at local veterinary clinics, or at dog kennels within the Town or neighboring towns, and shall be at the animal owner's expense. Complaint Resolution The ACO shall keep accurate, detailed records of the confinement and disposition of all animals held in custody and of all bite cases reported, and the result of investigations of the same.The ACO shall maintain a telephone log of all calls regarding animals and submit a monthly report summarizing the log to the Hearing Authority. 88-5 Hearing Authority 88-5.1 Hearing Authority The Hearing Authority shall be the Police Chief or his or her designee. 88-5.2 Right to Appeal When the ACO has investigated a complaint regarding an animal's behavior and has issued a finding or an order of Temporary Restraint with which either the animal's keeper or owner or the complainant disagrees,then either party may appeal by sending a written request to the Town Clerk within ten(10)business days after issuance of the ACO's decision. Following the Clerk's receipt of a written appeal,the Hearing Authority shall hold a public hearing on the appeal. 88-5.3 Findings and Further Appeals The Hearing Authority shall decide whether to uphold,reverse, or modify the ACO's decision and shall mail its ruling to the animal owner, complainant, and ACO. 88-5.4 Hearings The Hearing Authority shall hold public hearings and make decisions on any vicious dog declara- tion under Section 88-6. 88-5.5 Further Appeals An appeal from a decision of the Hearing Authority may be made by either the Owner or Com- plainant. — 88 — 88-6 Vicious Dogs 88-6.1 Declaring a Dog Vicious Any dog that,without provocation,bites a human being or kills or maims a domestic animal without provocation may be declared vicious by the Hearing Authority.An exception may be made for a puppy(animal under six(6) months old)that draws blood, or for a dog that attacks or bites an unaccompanied domestic animal on the dog keeper's property. 88-6.2 Procedure for Declaring a Vicious Dog Upon the written complaint of the ACO, any other public safety agent, or upon the written com- plaint of any person the Hearing Authority shall hold a public hearing, after which it will deter- mine whether it should declare a dog vicious and,if so declared,what remedy is appropriate. 88-6.3 Exceptions A dog shall not be declared vicious if the Hearing Authority determines any of the following: *The person's skin was not broken. *The person who was bitten was willfully trespassing, committing a crime, or attempting to commit a crime on the premises occupied by the dog's keeper or owner. *The dog was being teased, tormented, abused, or assaulted by the injured person or animal prior to attacking or biting. *The dog was protecting or defending a human being in its immediate vicinity from attack or assault. 88-6.4 Remedies Upon its finding that the dog is vicious,the Hearing Authority shall order one of the following remedies;permanent restraint, destruction in accordance with MSPCA guidelines, or any other remedy authorized by applicable law. *Permanent Restraint Order is an order that the dog must at all times while on its keeper's or owner's property be kept within the keeper's or owner's house or a secure enclosure,The secure enclosure shall be a minimum of five feet wide,ten feet long, and five feet in height, with a horizontal top covering the entire enclosure; shall be constructed of not less than nine (9)gauge chain link fencing;the floor shall be not less than three (3)inches of poured concrete;with the bottom edge of fencing embedded in the concrete; shall be posted with a clearly visible warning sign including awarning symbol;must contain and provide protection from the elements;and shall comply with all applicable building codes and with the Zon- ing Bylaws of the Town of North Andover.In addition,the keeper or owner of the dog shall annually provide proof to the Town Clerk of a liability insurance policy of at least One Hun- dred Thousand(8100,000)Dollars for the benefit of the public safety; and whenever the dog leaves its keeper's or owner's property,it must be muzzled and restrained on a lead no longer than six feet or confined in an escape-proof enclosure. *Destruction is an order that the dog be destroyed in accordance with MGL Chapter 140 and Massachusetts Society for the Prevention of Cruelty of Animals guidelines. 88-7 Penalties 88-7.1 The owner,keeper and/or person otherwise in control of a dog shall be subject to a fine for each violation of this chapter in the same calendar year as follows: a. For a violation of Section 88-3.2, Section 88-3.3.2,Section 88-3.3.3,Section 88-3.3.4, Section 88-3.3.5, Section 88-3.3.6: First offense: $25 Second offense: $50 Third and subsequent offense: $100 — 89 — b. For a violation of Section 88-3.3.1, and Restraining Orders Issued under Sections 88- 4.2 or 88-6.4 First offense: $50 Second offense: $100 Third and subsequent offense: $150 c. For a violation of any other section: First offense: $25 Second offense: $50 Third and subsequent offense: $100 In the case of a continuing offense, each day shall constitute a separate violation. 88-7.2 Reimbursement of Costs If the ACO confines a dog and the animal owner does not pay all fees directly to the kennel or veterinary clinic,then the dog's keeper must reimburse the Town of North Andover for any ex- penses incurred in boarding that dog.If the dog has not been licensed,the keeper must obtain a license and pay any applicable late fee before the dog can be released. 88-8 Miscellaneous 88-8.1 Enforcement In addition to any other means of enforcement,the provisions of this bylaw and the regulations adopted pursuant thereto may be enforced by non-criminal disposition in accordance with the provisions of this bylaw, and MGL Chapter 40, §21D.The North Andover Police Chief or his designee,including the Animal Control Officer, and any North Andover Police Officer shall have authority to enforce the provisions of this chapter. 88-8.2 Orders of the ACO and Hearing Officer Any orders of confinement,muzzling or disposition issued by the ACO or the Hearing Officer may be in addition to the fines authorized by this chapter. 88-8.3 Non-Waiver of Statutory Remedies The provisions of this chapter are intended to be in addition to and not in lieu of those contained in MGL Chapter 140, §136A, et sec., as amended by Chapter 193 of Legislative Acts of 2012; nothing contained in this chapter shall deprive the Town from employing the remedies provided in those sections, including but not limited to disposition of a dog found to be a dangerous dog or nuisance dog, as provided in§157, as amended.To the maximum extent possible,the provisions of this chapter shall be deemed to be consistent with and/or supplementing those contained in MGL Chapter 140, as provided in§136A, et sec , as amended. Board of Selectmen — 90 — Article 7. Acceptance of a Public Way—Nutmeg Lane, Periwinkle Way,Thistle Road. UNANIMOUS VOTE to accept and name Nutmeg Lane, Periwinkle Way and Thistle Road as public ways, as laid out by the Board of Selectmen, and as shown on the following plans: Plan entitled"Street Layout Plan,Nutmeg Lane,North Andover,Massachusetts, Date:December 19,2007, Scale: 1"= 40', prepared for North Andover Land Corp.,"by Hayes Engineering,Inc.,Wakefield,MA; Plan entitled "Street Layout Plan, Periwinkle Way,North Andover,Massachusetts,Date: December 19,2007, Scale 1" =40',prepared for North Andover Land Corp.,"by Hayes Engineering,Inc.,Wakefield,MA and Plan entitled"Street Layout Plan,Thistle Road,North Andover,Massachusetts,Date:December 19,2007, Scale 1"=40',prepared for North Andover Land Corp.,"by Hayes Engineering,Inc.,Wakefield,MA, and to accept deeds to the streets and all related easements shown on said plans. Planning Board Article 8. Acceptance of a Public Way—Empire Drive. UNANIMOUS VOTE to accept and name Empire Drive as a public way, as laid out by the Board of Selectmen, and as shown as"Empire Drive"on a plan entitled,"Street Layout Plan of Empire Drive Located in No.Andover,Mass. Scale 1"=40'; Date January 1,2014, Christiansen&Sergi Professional Engineers Land Surveyors, 160 Summer St. Haverhill,MA 01830"and to accept deeds to the street and all related easements shown on said Plans filed with the Essex County(Northern District) Registry of Deeds of the Land Court on October 16,2009 as Plan Number 18083E and on the above-referenced Street Layout Plan. Planning Board Article 9. Acceptance of a Public Way—Woodlea Road. UNANIMOUS VOTE TO"TAKE NO ACTION"to accept and name Woodlea Road as a public way, as laid out by the Board of Selectmen, and as shown as"Woodlea Road"on a plan entitled,"Street Layout Plan,Woodlea Subdivision prepared for Ashwood Corporation, LLC, Scale 1"=30';Date April 5, 2013 revised March 24,2014,by Gateway Consultants"and to accept deeds to the street and all related restrictions and easements, shown on the plan entitled"Special Permit and Definitive Plans Woodlea Village"recorded as Plan No. 12873 and Plan No. 13263 at the North Essex Registry of Deeds and on the above referenced Street Layout Plan. Planning Board Article 10. Transfer use of land located on Chickering Road and Prescott Street from 'school purposes'to 'municipal use'. TWO-THIRD VOTE DECLARED BY THE MODERATOR voted to transfer the care, custody, control and management of certain property,from the School Committee, currently held for school purposes,to the Board of Selectmen,for general municipal purposes,being that portion of land located on Chickering Road and Prescott Street described in an Order of Taking recorded with the Essex North Registry of Deeds,in Book 1170, Page 335, and shown as"Lot A"on a sketch plan entitled"Central Fire Station High School Property,"dated February 7,2014, prepared by Sullivan Engineering,which sketch plan is on file with the Town Clerk. — 91 — Article 11. Citizen's Petition—Petition the General Court—Age Exemption—William Gregory Gordon— Police Officer. TWO-THIRD VOTE DECLARED BY THE MODERATOR to Petition the General Court to enact Legislation so that William Gregory Gordon shall be eligible to have his name certified for original appointment to the position of police officer for the Town of North Andover, notwithstanding his having reached the age of 32 before taking any civil service examination in connection with that appointment. William Gregory Gordon shall be eligible for appointment to the position of police officer in the Town of North Andover if he otherwise qualifies and is selected for appointment under Chapter 31 of the General Laws, any regulations of the civil service commission, and any lawful hiring practices for the Town of North Andover. Petition of William G. Gordon, et al Article 12. Citizen's Petition—Petition the General Court—Age Exemption—Albert P. Manzi, III—Police Officer. TWO-THIRD VOTE DECLARED BY THE MODERATOR to Petition the General Court to enact Legislation so that Albert P.Manzi, III shall be eligible to have his name certified for original appointment to the position of police officer for the Town of North Andover, notwithstanding his having reached the age of 32 before taking any civil service examination in connection with that appointment. Albert P.Manzi, III shall be eligible for appointment to the position of police officer in the Town of North Andover if he otherwise qualifies and is selected for appointment under Chapter 31 of the General Laws, any regulations of the civil service commission, and any lawful hiring practices for the Town of North Andover. Petition of Albert P. Manzi, lll, et al Article 13. Citizen's Petition—A Resolution to Support Passage of a Constitutional Amendment Providing That Only Human Beings Have Constitutional Rights. VOTED to instruct our Senators and Congressional representatives to support a Constitutional amendment to clarify that corporations and other entities created by law do not have the same rights as human beings. WHEREAS,the first amendment to the United States Constitution was designed to protect the free speech rights of human beings,not entities created by law; WHEREAS,corporations are not mentioned in the Constitution and The People have never granted Constitutional rights to corporations,unions and non-profits; WHEREAS,the United States Supreme Court's ruling in Citizen United v. Federal Election Commission overturned longstanding precedent prohibiting corporations from spending their general treasury funds to influence elections; WHEREAS,the above-mentioned Supreme Court ruling has unleashed unprecedented spending by corporations to influence elections,as occurred in the elections of November 2012 and in gubernatorial elections and special Congressional elections since then; WHEREAS,the impact of that ruling will be felt at the local,state and federal level as big campaign donors seek to dominate policy making;and WHEREAS,Article V of the United States Constitution empowers and obligates The People of the United States to use the constitutional amendment process to correct wrong decisions of the United States Supreme Court; — 92 — NOW THEREFORE,BE IT RESOLVED that the citizens of North Andover,Massachusetts hereby instruct the Senators and members of Congress representing North Andover to propose and/or support an amendment to the United States Constitution making it clear that corporations,unions and non-profit entities,since they are created by law,are not entitled to the constitutional rights of human beings. VOTED MAY 20, 2014: YES-176 NO-43 Petition of Frederick Nothnagel, et al Article 14. Citizen's Petition—To 'amend'Article 6, By-Law 112-2.4 approved by Town Meeting on May 21, 2013,and to amend the Board of Selectmen's Regulations approved pursuant to said Article 6, By- Law 112-2.4,whereby the Board of Selectmen is authorized to regulate mobile food vendors. MAJORITY VOTE that said By-Law be amended such that the provisions of said By-Law and Regulations with respect to Public Vending locations and parking shall not apply to any mobile food vendor who was licensed as of May 21,2013, and who currently holds a valid Mobile Food Truck license in North Andover,but shall apply to any change or substantial extension of such license or change in the nature of the activities of the mobile food vendor carried out thereunder when such change results in a substantially different purpose or for the same purpose in a substantially different manner or to a substantially different extent that was set forth in the original application pursuant to which said Mobile Food Truck was granted. Petition of Nadine Levin, et al Approved By Attorney General September 3, 2014-Posted September 8, 2014 Article 15. Set Salaries and Compensation of Elected Officials. UNANIMOUS VOTE to fix the salary and compensation of the elected officers of the Town, as provided by Chapter 41, §108 of the Massachusetts General Laws as follows: Board of Selectmen/Licensing Commissioners,per person,per annum $5,000 Chairman of Board of Selectmen,per annum,in addition $500 School Committee,per person,per annum $5,000 Chairman,School Committee,per annum,in addition $500 Moderator, For Annual Town Meeting $500 For each Special Town Meeting $250 Board of Selectmen Article 16. Continue and Approve Revolving Funds. UNANIMOUS VOTE to authorize the following revolving funds for certain Town departments under Massachusetts General Laws, Chapter 44, §53E 1/2 for the Fiscal Year beginning July 1,2014: — 93 — Revolving Fund Accounts Account Revolving Authorized Revenue FY 2015 Number Fund to Spend Use of Funds Source Limit 1. 2031204 Wheelabrator Director- Air quality Wheelabrator $ 35,000 Planning Community monitoring Host Development Community Agreement 2. 2031205 Wheelabrator Director- To enforce Wheelabrator $20,000 Public Safety Community Trash Truck Host Development regulations Community Agreement 3. 2031207 Health Dept- Director- Food Inspection $20,000 Food Community Consultant fees Fees Inspections Development and expenses related to program 4. 2031208 Health Dept- Director- Septic Inspection $ 15,000 Septic Community Consultant fees Fees Inspections Development and expenses related to program 5. 2031210 Field Director- Field Field rental $ 10,000 Maintenance Division of maintenance, fees, Grants, Public Works upgrade Donations, and and related related Fund- expenses raising proceeds 6. 2031211 Health Dept Director- Clinic supplies Clinic $ 30,000 Revolving Community and other participant Development related fees, Grants, materials Donations, and related Fundraising proceeds 7. 2031213 Youth and Director- All programs Participants' $260,000 Recreation Division of and activities, fees, Grants, Services Public Works expense, part Donations, and Revolving time help related Fund- raising proceeds 8. 2031217 Elder Services Director of Senior Participants' $20,000 - COA Revol Human programs, fees, Grants, Services classes and Donations, and activities related Fund- raising proceeds 9. Stormwater Director- Review, test Review Fees $ 50,000 Bylaw Community and inspect Development Stormwater reports TOTAL $460,000 Revolving Fund Account Receipts And Expenditures Account Revolving Balance FY13 FY13 Balance Receipts thru Expenditures Number Fund 7/1/12 Receipts Expenditures 6/30/13 12/31/13 thru 12/31/13 Balance 2031204 Wheelabrator $75,059 $25,000 $(10,604) $89,455 $25,000 $(6,248) $108,207 Planning 2031205 Wheelabrator $48,664 $12,950 $(2,020) $59,594 $3,200 $(2,410) $60,384 Public Safety 2031207 Health Dept- $80,588 $29,035 $(26,011) $83,612 $23,445 $(7,526) $99,532 Food Inspections 2031208 Health Dept- $14,059 $18,193 $(14,135) $18,117 $9,805 $(6,623) $21,299 Septic 2031210 Field Maintenance $10,150 $4,000 $(11,466) $2,684 $1,200 $- $3,884 2031211 Health Dept $1,964 $35,083 $(11,903) $25,144 $2,224 $(18,479) $8,889 Revolving 2031213 Youth and $218,082 $272,539 $(294,223) $196,399 $133,822 $(187,318) $142,903 Recreation Services Revolving 2031217 Elder Services- $9,091 $33,304 $(28,735) $13,660 $13,913 $(13,075) $14,499 COA Revol Board of Selectmen Article 17. Approve Payment of Prior Years Unpaid Bills. UNANIMOUS VOTE to authorize payment of the following unpaid bills from prior year(s),by the respective department,using appropriations of the current fiscal year, Prior Year Invoices FY13 Vendor Amount Department Gatehouse Media $ 114.12 Treasurer Pitney Bowes $ 194.56 Treasurer First Student $ 325.55 School GLEC $ 351.11 School Total $ 985.34 Board of Selectmen Article 18. Amend Capital Improvement Plan Appropriations from a Prior Year. UNANIMOUS VOTE to amend the vote under Article 27 of the warrant for the June 2011 Annual Town Meeting,"Capital Improvement Plan Appropriation Fiscal Year 2012,"to provide that the appropriation under Line 12,"Atkinson School Window Replacement,"as amended by a vote under Article 24 of the June 2012 Annual Town Meeting,is hereby increased by$42,515.85, and that to meet this additional appropriation,unexpended bond proceeds in the following amounts from the following articles shall be transferred, said sums representing amounts not needed for the completion of the projects for which they were originally borrowed,which projects are complete and for which no liability remains, Amount Project Date/Article Number Date of Bonds $25,536.45 Middle School 06/07/2011, Art. 27, Line 4 06/24/2013 Roof Replacement as amended by 11/5/11. Art. 1 $16,979.40 Sargent School 06/07/2011, Art. 27, Line 11 05/17/2012 Roof Replacement as amended by 11/5/11. Art. 1 — 96 — Article 19. UNANIMOUS VOTE to raise and appropriate funds for Fiscal Year 2015 as presented under the column titled"Board of Selectmen&Finance Committee&Town Manager Recommend" General Government $2,336,445 Public Safety $ 9,982,596 Education $42,312,661 Snow and Ice Removal $ 875,000 All Other Public Works $ 3,446,636 Health and Human Services $ 1,221,135 Culture and Recreation $ 942,646 Support Services $ 1,704,357 Debt Service $ 5,876,612 Employee Benefits $ 14,819,472 Liability Insurance $422,925 Regional Schools $293,066 for a total appropriation of$84,231,551 and to further appropriate$165,000 for Deficit(Snow and Ice) reserve and to transfer to the General Fund from Special Revenue-GLSD$143,103,and from Special Revenue- Community Programs$61,350,for a total of$204,453. Article 20. Appropriation—Water Enterprise Fund for Fiscal Year 2015. UNANIMOUS VOTE to appropriate the amount of$5,592,600 in aggregate,for the purpose listed under column"FY15 Recommendation:Town Manager, Board of Selectmen, Finance Committee"for the Fiscal Year beginning July 1,2014 and ending June 30,2015;without regards to individual line items, and to operate the Water Enterprise Fund,that$5,592,600 be raised from Water receipts and from these receipts $900,710 be transferred to the General Fund for indirect cost and$600,000 to Capital Projects: WATER ENTERPRISE Fiscal Fiscal Year 2015 Fiscal Year Recommendation Year 2015 Town Manager 2014 Department Board of Selectmen Budget Request Finance Committee Personnel 868,045 896,678 896,678 Expense 1,482,469 1,488,819 1,488,819 Debt Service 1,662,449 1,706,393 1,706,393 Sub-Total Direct Expenditures 4,012,963 4,091,890 4,091,890 Transfer to Capital Projects 0 0 600,000 Admin/Indirect 878,741 900,710 900,710 Total Water Enterprise 4,891,704 4,992,600 5,592,600 Board of Selectmen — 97 — Article 21. Appropriation—Sewer Enterprise Fund for Fiscal Year 2015. UNANIMOUS VOTE to appropriate the amount of$4,718,451 in aggregate,for the purpose listed under the column"FY15 Recommendation:Town Manager, Board of Selectmen, Finance Committee"for the Fiscal Year beginning July 1,2014 and ending June 30,2015;without regards to individual line items, and to operate the Sewer Enterprise Fund,that$4,718,451 be raised from sewer receipts and from these receipts $423,863 be transferred to the General Fund for indirect expenses: SEWER ENTERPRISE Fiscal Fiscal Year 2015 Fiscal Year Recommendation Year 2015 Town Manager 2014 Department Board of Selectmen Budget Request Finance Committee Personnel 517,849 371,208 356,950 Expense 318,275 325,700 325,700 GLSD Assessment 1,655,000 1,655,000 1,655,000 Debt Service 1,992,000 1,956,938 1,956,938 Sub-Total Direct Expenditures 4,483,124 4,308,846 4,294,588 Admin/Indirect 529,744 423,863 423,863 Total Sewer Enterprise 5,012,868 4,732,709 4,718,451 Board of Selectmen Article 22. Appropriation—Stevens Estate Enterprise Fund for Fiscal Year 2015. UNANIMOUS VOTE to appropriate the amount of$292,719 in aggregate,for the purpose listed under the column"FY15 Recommendation:Town Manager, Board of Selectmen, Finance Committee"for the Fiscal Year beginning July 1,2014 and ending June 30,2015;without regards to individual line items, and to operate the Stevens Estate at Osgood Hill Enterprise Fund that$292,719 be raised from Stevens Estate at Osgood Hill Fund and from these receipts $47,622 be transferred to the General Fund for indirect expenses, STEVENS ESTATE AT OSGOOD HILL ENTERPRISE Fiscal Fiscal Year 2015 Fiscal Year Recommendation Year 2015 Town Manager 2014 Department Board of Selectmen Budget Request Finance Committee Personnel 96,125 108,932 108,932 Expense 129,389 159,947 136,165 Debt Service 0 0 0 Sub-Total Direct Expenditures 225,514 268,879 245,097 Admi n/Indirect 46,460 47,622 47,622 Total Stevens Estate Enterprise 271,974 316,501 292,719 Board of Selectmen — 98 — Article 23. Appropriation—Capital Improvement Plan for Fiscal Year 2015. TWO-THIRD VOTE DECLARED BY THE MODERATOR to fund the Capital Improvement Program as listed under the heading"Board of Selectmen/Finance Committee/Town Manager Recommendations" and with the language included: Fiscal Year 2015 CIP Recommendations OTHER BOARD OF FUNDING SELECTMEN SOURCES FINANCE (GRANTS, AUTHORIZED COMMITTEE CHAPTER 90, TO BORROW TOWN MANAGER CPA& RAISE& RETAINED EXCESS BOND UNDER CHAPTER LINE# PROJECT DESCRIPTION RECOMMENDATIONS SPEC REV) APPROPRIATED EARNINGS PROCEEDS 44 1 Roadway Improvements $840,000 $(775,000) $- $65,000 2 Sidewalks $75,000 $75,000 Reconstruction 3 Franklin School Drainage $73,500 $(73,500) $- Repair&Underground Storage Tank Removal 4 Facilities Master Plan $6,377,767 $6,377,767 Implementation* 5 Municipal IT $50,000 $50,000 6 Building Maintenance $150,000 $150,000 7 School IT $106,422 $106,422 8 District Wide Paving $152,401 $(10,343) $142,058 9 Equipment 6-Wheel $160,000 $160,000 Dump Truck 10 Installation of Fiber $57,000 $(57,000) $- Optics 11 Water&High Street $650,000 $(56,172) $593,828 Eights,Intersection,Road Improv 12 Carpet Replacement $149,263 $149,263 (District Wide) 13 Addition to 170 Sutton St. $150,000 $(150,000) $- (Thrift Shop) General Fund Total $8,991,353 $(775,000) $(223,500) $- $(123,516) $7,869,337 14 Water Treatment $600,000 $- $- $(600,000) $- $- Plant Process Control Computer Water Enterprise Fund Total $600,000 $- $- $(600,000) $- $- 16 Sewer Utility Truck $78,000 $(2,317) $75,683 Sewer Enterprise Fund Total $78,000 $(2,317) $75,683 Total All Funds $9,669,353 $(775,000) $(223,500) $(600,000) $(125,833) $7,945,020 *See Appendix A for more information — 99 — that to meet this appropriation: (1)The Treasurer with the approval of the Board of Selectmen is authorized to borrow$7,945,020 under chapter 44 of the Massachusettes General Law or any other enabling authority; (2) The appropriations for items 3 and 13 above shall be raised in the tax levy; (3) The appropriation for item 14 above shall be funded with Water Enterprise fund retained earnings; (4) a portion of the appropriation for item 8 above in the amount of$152,401 shall be funded with the transfer from the following project in the amount set forth below,said sum represents excess bond proceeds not needed for the completion of the project: Amount Project Date/Article Number Date Bonded $10,343 Modular Classrooms-Sch Comm Programs 2009/Art lA 12/15/2009 $10,343 (5) a portion of the appropriation for item 10 above in the amount of$57,000 shall be funded with the transfer from the following project in the amount set forth below,said sum represents excess bond proceeds not needed for the completion of the project: Amount Project Date/Article Number Date Bonded $57,000 Fire Dept Radio Equipment 2010/Art 28 Sec 10 2/17/2011 $57,000 (6) a portion of the appropriation for item 11 above in the amount of$650,000 shall be partially funded with the transfer from the following project in the amount set forth below,said sum represents excess bond proceeds not needed for the completion of the project: Amount Project Date/Article Number Date Bonded $1,107 Fire Dept Radio Equipment 2010/Art 28 Sec 10 2/17/2011 $55,066 Library HVAC System 2010/Art 2 2/17/2011 $56,173 (7)a portion of the appropriation for item 16 above in the amount of$78,000 shall be partially funded with the transfer from the following project in the amount set forth below,said sum represents excess bond proceeds not needed for the completion of the project: Amount Project Date/Article Number Date Bonded $2,317 Sewer Utility Truck 2012 2012/Art 27 Sec 13 5/17/2012 $2,317 Article 24. Report of the Community Preservation Committee-Appropriation From Community Preservation Committee Fund. UNANIMOUS VOTE to receive the report of the Community Preservation Committee and to raise, transfer and/or appropriate from the Community Preservation Fund in accordance with the provisions of Massachusetts General Laws, Chapter 44B, a sum of money to be spent under the direction of the Community Preservation Committee as shown in the List of Approved Projects in Article 24; and,with regard to the appropriation of the $570,000 for the Old Center Preservation Project,to authorize an expenditure not to exceed$570,000 for the purchase of a conservation restriction or other interest from Center Realty Trust or its nominee,in three parcels of land, shown as Lot 1, Lot 2 and Lot 3 on the Plan — 100 — of Land submitted to the Community Preservation Committee,which three parcels of land are a portion of the parcels of land described in deeds recorded with North Essex Registry of Deeds in Book 2073, Page 40 and Book 890, Page 349, and which are a portion of the parcels known as Assessor's Map 59, Parcel 1,Assessor's Map 96, Parcel 26, and Assessor's Map 96, Parcel 33, and expenses incidental and related thereto for purposes of the purchase of a conservation restriction or other interest, and that the Town Manager be authorized to file on behalf of the Town any applications for funds in any way connected with the scope of the acquisition of said conservation restriction,that the Board of Selectmen be authorized to determine the final purchase price of the restriction and any other interests which maybe acquired for the purposes stated herein, and that the Town Manager and the Board of Selectmen be authorized to enter into all agreements and execute all instruments,including but not limited to grant agreements, easements and conservation restrictions in accordance with Massachusetts General Laws Chapter 184, on terms and conditions they deem to be in the best interest of the Town and as may be necessary on behalf of the Town of North Andover to affect the purchase of said conservation restriction; and,with regard to the other appropriations listed in said Article 24,that the Town Manager and Board of Selectmen be authorized to enter into all agreements and execute all instruments,including but not limited to deeds, easements, and restrictions in accordance with Massachusetts General Laws Chapter 184, on terms and conditions as they deem to be in the best interest of the Town,to carry out the purposes of M.G.L. Chapter 44B. LIST OF APPROVED PROJECTS—COMMUNITY PRESERVATION FUND Description Amount Category McEvoy Field— Phase 2 $290,000 Open Space— Recreation Stevens Estate—Stained Glass Window $25,120 Historical Preservation Refurbishment Multi-Use Trail — Phase 1 $176,000 Open Space— Recreation Sargent School Playground $92,260 Open Space— Recreation Old Center Preservation Project $570,000 Open Space/Historical Preservation Nan's Trail $68,435 Open Space Reserve for Affordable Housing $196,600 Affordable Housing Administrative Costs $30,000 Administrative and Operating Expenses Total for Approved Projects $1,448,415 Community Preservation Committee Article 25. Establish OPEB Stabilization Fund. UNANIMOUS VOTE to create an Other Post-Employment Benefits (OPEB) Stabilization Fund for the purpose of funding costs and liabilities associated with municipal health insurance benefits provided to retired town and school employees, as authorized by Chapter 40, §5B of the General Laws, as amended, Town Manager Article 26. Transfer of Funds from Health Insurance Trust Fund to OPEB Stabilization Fund. UNANIMOUS VOTE to transfer from the Health Insurance Trust Fund to the OPEB Stabilization Fund a sum of$1,000,000. Town Manager — 101 — Article 27. Transfer to Capital Stabilization. UNANIMOUS VOTE to transfer$213,000 from available funds or free cash into the Capital Stabilization Fund. Town Manager Article 28. Transfer to Stabilization. UNANIMOUS VOTE to transfer$625,000 from available funds or free cash into the Stabilization Fund. Town Manager Article 29, Citizen's Petition—Authorization to Acquire Berry Street Property consisting of approximately 26 acres of land and building, including a home built in 1824,an historic cemetery dating back to the mid 1700's, land for conservation and as a location for a critically needed out-country fire station and to fund said acquisition by issuance of Bonds and/or Notes,Appropriations, Grants, including Community Preservation Act funds,and from other sources as may be determined by the Board of Selectmen and in an amount not to exceed two million five hundred thousand dollars ($2,500,000),without further Town Meeting approval. UNANIMOUS VOTE TO"TAKE NO ACTION"to authorize the Board of Selectmen to acquire by purchase,lease,gift,grant, eminent domain, or otherwise two parcels of land and buildings thereon,if any, of which, as approximately 8.7 acres of land and buildings recorded as being owned as of February 28,2014 by North Andover Holdings, LLC, and approximately 17 acres of land and buildings recorded as being owned as of February 28,2014 by Berry Street Trust, u/d/t dated August 7, 1981 recorded with the Essex North Registry of Deeds(the Registry) at Book 1524,page 97, as amended by Trustee's Certification and First Amendment to Berry Street Trust, dated May 9,2006, and recorded with the Registry at Book 10177, Page 74 and further amended by Trustee's Certificate and Second Amendment, dated December 16,2009, and recorded with the Registry at Book 11882, Page 180, all of which is described as follows and to fund said acquisition by issuance of Bonds and/or Notes,Appropriations, Grants,including Community Preservation Act funds, and from other sources, as may be determined by the Board of Selectmen and in an amount not to exceed two million five hundred thousand dollars (82,500,000),without further Town Meeting approval. Property Description The fee simple estate in and to the land in North Andover,Essex County,Commonwealth of Massachusetts,together with the buildings and improvements thereon,on the northeasterly side of Turnpike Street and Northerly side of Berry Street,and being shown as Lots 1-9 inclusive,Parcel A and Parcel B,and Lot 12 on a plan of land entitled"Definitive Subdivision Plan,Framar Way,off Berry Street, North Andover,MA,Date:August 2011,Prepared for:Margaret Fiore,Goldsmith,Prest&Ringwall,Inc., Engineers and Surveyors",which said plan is recorded with the Essex North District Registry of Deeds as Plan No. 16683. Together containing 25,702 acres,more or less,and all of said boundaries being shown on said Plan No. 16683 hereby attached in two formats. Excepting therefrom the following,viz. *Such rights,if any,as the inhabitants of the town may have in and to certain portions of the premises to be used by them as a burial place,said burial lot containing approximately 7,500 square feet,and being shown on said plan; — 102 — *Land along Turnpike Street,also known as Salem Turnpike,released to the Middleton and Danvers Railroad by release dated September 20, 1901,recorded with said Registry at Book 191,Page 220;and *That portion of the premises taken by the Commonwealth of Massachusetts for highway purpose,along Turnpike Street,said taking being recorded with Registry at Book 689,Page 281,and shown on Plan No. 1638 in said Registry. For title to the above premises,see deed recorded at Book 1524,Page 103,and at Book 12923,Page 102 in said Registry of Deeds, Petition of Robert Ercolini et al Article 30. Amend Zoning Bylaw—Section 8: Supplementary Regulations by replacing Subsection 8.11: Wind Facilities. UNANIMOUS VOTE to amend the Town of North Andover Zoning Bylaw,by replacing Section 8.11 Wind Facilities with the following, Section 8.11 Wind Facilities 8.11.1 Purpose *The purpose of this bylaw is to provide standards for the placement, design, construction, operation, monitoring, modification and removal of wind facilities that address public safety, minimize impacts on scenic, natural and historic resources and to provide adequate financial assurance for the eventual decommissioning of such facilities. *The provisions set forth in this bylaw shall take precedence over all other bylaws when considering applications related to the construction, operation, and/or repair of land-based wind facilities. *No wind facilities shall be placed, constructed or modified within the Town without first obtaining approval from the Special Permit Granting Authority(SPCA).The Planning Board shall be the Spe- cial Permit Granting Authority for the issuance of a Special Permit to allow the placement, construc- tion and modification of wind facilities within the town.This bylaw is intended to be used in conjunc- tion with other regulations adopted by the Town, and other zoning and general bylaws designed to encourage appropriate land use, environmental protection,preservation of the rural character, and the provision of adequate infrastructure development in North Andover. *Applicability This section applies to all utility-scale and on-site wind facilities proposed to be constructed after the effective date of this section.This section also pertains to physical modifications to existing wind facilities that materially alter the type,configuration,location or size of such facilities or related equip- ment. *Definitions *Critical Electric Infrastructure(CEI):electric utility transmission and distribution infrastructure, including but not limited to substations,transmission towers,transmission and distribution poles, supporting structures,guy-wires, cables,lines and conductors operating at voltages of 13.8 kV and above and associated telecommunications infrastructure. CEI also includes all infrastructure de- fined by any federal regulatory agency or body as transmission facilities on which faults or distur- bances can have a significant adverse impact outside of the local area, and transmission lines and associated equipment generally operated at voltages of 100 kV or higher,and transmission facilities which are deemed critical for nuclear generating facilities. — 103 — *Height:The height of a wind facility measured from natural grade to the tip of the rotor blade at its highest point, or blade-tip height.This measure is also commonly referred to as the maximum tip height(MTH). *Wind Facility:All of the equipment, machinery and structures together utilized to convert wind to electricity.This includes,but is not limited to, developer-owned electrical equipment, storage, collection and supply equipment, service and access roads, and one or more wind facilities. *Wind Monitoring or Meteorological Tower:A temporary tower equipped with devices to measure wind speed and direction, to determine how much electricity a wind facility can be expected to generate. *Application Procedures *The construction and operation of all such proposed wind facilities shall be consistent with all applicable local, state and federal requirements, including but not limited to all applicable safety, construction, environmental, electrical, communications and aviation requirements. *A Special Permit for the construction of wind facilities designed to service the principal use may be granted by the Planning Board in all zoning districts subject to the following requirements and the Special Permit provisions of Section 10.3. *All plans and maps shall be prepared, stamped and signed by a professional engineer licensed to practice in Massachusetts. *The application shall contain the following documents: *A site plan showing the following information: *Property lines and physical dimensions of the site parcel and adjacent parcels within 500 feet of the site parcel; *Outline of all existing buildings, including purpose (e.g. residence, garage, etc.) on site parcel and all adjacent parcels within 500 feet of the site parcel,including distances from the wind facility to each building shown; *Location of the proposed tower, foundations, guy anchors, access roads, and associated equipment; *Zoning designation for the parcel; *Location of all existing and proposed roads,both public and private, and including tem- porary roads or driveways, on the site parcel and adjacent parcels within 500 feet of the site parcel; *Location of all existing above ground or overhead gas or electric infrastructure,including Critical Electric Infrastructure,and utility rights of way(ROW)and easements,whether fully cleared of vegetation or only partially cleared,within 500 feet of the site parcel; *Existing areas of tree cover, including average height of trees, on the site parcel and any adjacent parcels within a distance, measured from the wind facility foundation, of 3.0 times the MTH; *Location of all wetlands on the parcel; *Proposed changes to the landscape of the site,grading,vegetation clearing and planting, exterior lighting(other than FAA lights), screening vegetation or structures; *Documentation of the wind facility's manufacturer and model, rotor diameter, tower height, tower type(freestanding or guyed), and foundation type/dimensions; *Name, address, phone number and signature of the applicant, as well as all co-applicants or property owners,if any; — 104 — *The name, contact information and signature of any agents representing the applicant; *A operations and maintenance plan for the wind facility; *A construction plan indicating manufacturer's specifications for the tower materials, con- struction details and details for footing and guying. *A statement that evidences the wind facility's conformance with Section 9.c., listing existing ambient sound levels at the site and maximum projected sound levels from the wind facility; *Waivers Documentation requirements may be waived at the discretion of the Planning Board. * Site Control The applicant shall submit documentation of actual or prospective access and control of the project site sufficient to allow for installation and operation of the proposed wind facility.Control shall include the legal authority to prevent the use or construction of any structure for human habitation,or inconsistent or interfering use,within the setback areas. *Temporary Meteorological Towers (MET Towers) A building permit shall be required for stand-alone temporary met towers. A Special Permit shall not be required for MET towers. MET towers shall not be located within setback distance from the sideline of any utility ROW. *Design Requirements *No tower inclusive of its appurtenant device(s)shall exceed 150 feet in height nor be erected nearer to any property line than a distance equal to ten (10) times the blade diameter, unless the Board determines such restriction to be unnecessary due to the shape, topography, use or ownership of the abutting property and the Board determines that a reduction to this setback requirement will not substantially derogate from the intent or purpose of this subsection. *Wind facilities shall be lighted only if required by the FAA. Lighting of other parts of the wind facility, such as appurtenant structures, shall be limited to that required for safety and operational purposes, and shall be reasonably shielded from abutting properties. Except as required by the FAA, lighting of the wind facility shall be directed downward and shall incorporate full cut-off fixtures to reduce light pollution. * Signs on wind facilities shall comply with the Town's sign by-law. The following signs shall be required: *Those necessary to identify the owner, provide a 24-hour emergency contact phone number, and warn of any danger. *Educational signs providing information about the facility and the benefits of renewable energy. *Wind facilities shall be erected in such a manner to inhibit unauthorized access, either in the form of a suitable locked gate and fence surrounding the base of the tower, a non-climbable section of tower to a height of 10 feet above the ground or other means determined suitable by the Board. — 105 — *Reasonable efforts, as determined by the Special Permit Granting Authority, shall be made to place all developer-owned utility connections from the wind facility underground, depending on appropriate soil conditions, shape, and topography of the site and any requirements of the utility provider. Utility owned electrical equipment required for utility interconnections may be above ground,if required by the utility provider. *All appurtenant structures to wind facilities shall be subject to applicable regulations concerning the bulk and height of structures, lot area, setbacks, open space, parking and building coverage requirements. All such appurtenant structures, including but not limited to, equipment shelters, storage facilities,transformers, and substations, shall be architecturally compatible with each oth- er and contained within the wind facility tower whenever technically and economically feasible. Whenever reasonable, structures should be shaded from view by vegetation and/or located in an underground vault and joined or clustered to avoid adverse visual impacts. *A wind facility may not be sited within: *a distance equal to ten(10)times the blade diameter of the wind facility from buildings,criti- cal infrastructure—including Critical Electric Infrastructure and above-ground natural gas distribution infrastructure—or private or public ways that are not part of the wind facility; *a distance equal to ten (10) times the blade diameter of the wind facility from the nearest existing residential or commercial structure. *Wind facilities shall be sited in a manner that minimizes shadowing or flicker impacts.The ap- plicant has the burden of proving that this effect does not have significant adverse impact on neighboring or adjacent uses. *Operations *The applicant shall maintain the wind facility in good condition.Maintenance shall include,but not be limited to, painting, structural repairs, emergency braking (stopping) and integrity of se- curity measures. Site access shall be maintained to a level acceptable to the local Fire Chief and Emergency Medical Services.The project owner shall be responsible for the cost of maintaining the wind facility and any access road(s),unless accepted as a public way. *The operation of any facility authorized by the Board shall not cause interference to neighboring television and radio reception, and,if such occurs any time after installation, the applicant shall, in a timely manner and at his expense, correct the cause of the interference as determined by a qualified engineer/technician. *The operation of the wind facility shall not exceed thirty(30) dB as measured at the applicant's property lines, and, if such excess noise occurs any time after installation, the applicant shall, in a timely manner and at his expense, correct the cause of the noise as determined by a qualified engine er/technician. *The applicant shall maintain the facility and all devices authorized by the Board in a manner that ensures its continued performance and safety. It shall be the responsibility of the applicant to an- nually inform (in writing) the Inspector of Buildings that the tower and all devices are in good operating condition and in continued use. *The applicant shall provide a copy of the project summary, electrical schematic, and site plan to the police and fire departments, and/or the local emergency services entity designated by the lo- cal government, as well as the local electrical utility company. Upon request the applicant shall cooperate with local emergency services in developing an emergency response plan. All means — 106 — of disconnecting the wind facility shall be clearly marked. The applicant or facility owner shall identify a responsible person for public inquiries or complaints throughout the life of the project. *Wind facilities shall be designed to prevent unauthorized access. For instance,the towers of wind shall be designed and installed so that step bolts or other climbing features are not readily acces- sible to the public and so that step bolts or other climbing features are not installed below the level of 8 feet above the ground. Electrical equipment shall be locked where possible. *Clearing of natural vegetation shall be limited to that which is necessary for the construction, operation and maintenance of the wind facility or otherwise prescribed by applicable laws,regula- tions, and bylaws, and subject to existing easements,restrictions and conditions of record. *Modifications All material modifications to a wind facility made after issuance of the required building permit shall require approval by the Special Permit Granting Authority. *Removal Requirements Any wind facility which has reached the end of its useful life or has been abandoned shall be removed. The owner/operator shall physically remove the facility no more than 150 days after the date of discon- tinued operations.The applicant shall notify the Special Permit Granting Authority by certified mail of the proposed date of discontinued operations and plans for removal.Decommissioning shall consist of. *Physical removal of all wind facilities, structures, equipment, security barriers and transmission lines from the site. *Disposal of all solid and hazardous waste in accordance with local,state,and federal waste disposal regulations. * Stabilization or re-vegetation of the site as necessary to minimize erosion. The Special Permit Granting Authority may allow the owner to leave landscaping or designated below-grade founda- tions in order to minimize erosion and disruption to vegetation. *Applicants for utility-scale wind facilities shall provide a form of surety, either through escrow account, bond or otherwise, to cover the cost of removal or failure to maintain, in the event the town must maintain or remove the facility and remediate the landscape, in an amount and form determined to be reasonable by the Special Permit Granting Authority,but in no event to exceed more than 125 percent of the cost of removal and compliance with the additional requirements set forth herein, as determined by the applicant. Such surety will not be required for municipally or state- owned facilities.The applicant shall submit a fully inclusive estimate of the costs associ- ated with removal, prepared by a qualified engineer.The amount shall include a mechanism for calculating increased removal costs due to inflation. *Abandonment Absent notice of a proposed date of decommissioning or written note of extenuating circumstances,the wind facility shall be considered abandoned when the facility fails to operate for more than one year without the written consent of the Special Permit Granting Authority.If the applicant fails to remove the facility in accordance with the requirements of this section within 150 days of abandonment or the proposed date of decommissioning,the town may enter the property and physically remove the facility. Planning Board — 107 — Article 31. Amend Zoning Bylaw—Section 8: Supplementary Regulations by replacing Subsection 8.12: Medical Marijuana Treatment Facilities. UNANIMOUS VOTE to amend the Town of North Andover Zoning Bylaw,by replacing Section 8.12 Medical Marijuana Treatment Center with the following, or to take any other action relative thereto. Section 8.12 Medical Marijuana Overlay District *Establishment:The Medical Marijuana Overlay District("MMOD")is established as an overlay district. The boundaries of the MMOD are shown on the Zoning Map on file with the Town Clerk and are described below.Within the MMOD,all requirements of the underlying district(s)remain in effect,except where these regulations provide an alternative to such requirements.Land within the MDOD maybe used either for(1) a Registered Marijuana Dispensary("RMD"),in which case the requirements set forth in this section shall apply;or(2) a use allowed in the underlying district,in which case the requirements of the underlying district shall apply.If the provisions of the MMOD are silent on a zoning regulation,the requirements of the underlying district shall apply.If the provisions of the MMOD conflict with the requirements of the underlying district,the requirements of the MMOD shall control. *Purpose:To provide for the placement of RMDs,in accordance with the Humanitarian Medical Use of Marijuana Act,M.G.L.c.94C,App.§1-1,et seq.,in locations suitable for lawful medical marijuana facilities and to minimize adverse impacts of RMDs on adjacent properties,residential neighborhoods,historic districts,schools,playgrounds and other locations where minors congregate by regulating the siting,design,placement,security,and removal of RMDs. *Boundaries:Boundaries of the MMOD are shown on the Zoning Map and shall include the following parcels as identified on the FY 2014 Assessor's Zoning Map:Map 77 Parcels 3, 12, 13, 14,&17. *Definitions:where not expressly defined in the Zoning Bylaws,terms used in the MMOD Bylaw shall be interpreted as defined in the Humanitarian Medical Use of Marijuana Act,M.G.L.c.94C,App.§1-1,et seq.and the Department of Public Health Regulations promulgated thereunder, 105 CMR 725.001,et seq.,and otherwise by their plain language. Registered Marijuana Dispensary:also known as a Medical Marijuana Treatment Center,means a not-for-profit entity registered under 105 CMR 725.100,that acquires,cultivates,possesses, processes(including development of related products such as edible marijuana-infused products ("MIPs"),tinctures,aerosols,oils,or ointments),transfers,transports,sells,distributes,dispenses,or administers marijuana,products containing marijuana,related supplies,or educational materials to registered qualifying patients or their personal caregivers.Unless otherwise specified,RMD refers to the site(s)of dispensing,cultivation,preparation,sale and distribution of marijuana. *Location: *RMDs may be permitted in the MMOD pursuant to a Special Permit. *RMDs may not be located within 500 feet of the following: *School, including a public or private elementary, vocational, or secondary school or a public or private college,junior college, or university; *Child Care Facility; *Library; *Playground; — 108 — *Public Park; *Youth center; *Public swimming pool; *Video arcade facility; or *Similar facility in which minors commonly congregate. *The distance under this section is measured in a straight line from the nearest point of the prop- erty line of the protected uses identified in Section 8.12.5 (2).to the nearest point of the property line of the proposed RMD. *Procedure: *The Planning Board shall be the Special Permit Granting Authority(SPCA) for a RMD special permit. *The minimum lot size for the location of an RMS within the Overlay District is one acre. *Application:In addition to the materials required under Section 10.3 the applicant shall include: *The name and address of each owner of the facility/operation; *Evidence that the Applicant has site control and the right to use the site for a facility in the form of a deed or valid purchase and sale agreement, or, in the case of a lease, a notarized statement from the property owner and a copy of the lease agreement; *A copy of its registration as an RMD from the Massachusetts Department of Public Health ("DPH"); *A detailed floor plan of the premises of the proposed RMD that identifies the square footage available and describes the functional areas of the RMD,including areas for any preparation of MIPS; *Detailed site plans that include the following information: *Compliance with the requirements for parking and loading spaces, for lot size, frontage, yards and heights and coverage of buildings, and all other provisions of this Bylaw; *Convenience and safety of vehicular and pedestrian movement off the site, if vehicular and pedestrian traffic off-site can reasonably be expected be substantially affected by on- site changes; *Adequacy as to the arrangement and the number of parking and loading spaces in rela- tion to the proposed use of the premises, including designated parking for home delivery vehicle(s), as applicable; *Design and appearance of proposed buildings, structures, freestanding signs, screening and landscaping; and *Adequacy of water supply, surface and subsurface drainage and light. *A description of the security measures,including employee security policies, approved by DPH for the RMD; *A copy of the emergency procedures approved by DPH for the RMD; — 109 — *A copy of the policies and procedures for patient or personal caregiver home-delivery ap- proved by DPH for the RMD; *A copy of the policies and procedures for the transfer, acquisition, or sale of marijuana between RMDs approved by DPH; *A copy of proposed waste disposal procedures; and *A description of any waivers from DPH regulations issued for the RMD. *The SPCA shall refer copies of the application to the Building Department, Fire Department, Police Department, Board of Health, the Conservation Commission, and the Department of Public Works.These boards/departments shall review the application and shall submit their writ- ten recommendations.Failure to make recommendations within 35 days of referral of the applica- tion shall be deemed lack of opposition. *After notice and public hearing and consideration of application materials, consultant reviews, public comments, and the recommendations of other town boards and departments, the SPCA may act upon such a permit. *Special Permit Conditions on RMDs:The SPCA shall impose conditions reasonably appropriate to improve site design,traffic flow,public safety,protect water quality, air quality, and significant environmental resources, preserve the character of the surrounding area and otherwise serve the purpose of this section. In addition to any specific conditions applicable to the applicant's RMD, the SPCA shall include the following conditions in any special permit granted under this Bylaw: *The hours of operation shall be set by the Special Permit Granting Authority,but in no event shall a facility be open to the public, nor shall any sale or other distribution of marijuana oc- cur upon the premises or via delivery from the premises,between the hours of 8:00 p.m. and 8:00 a.m. *No Medical Marijuana Facility shall have a gross floor area of less than 2,500 square feet or in excess of 20,000 square feet. *An RMD shall not be located in buildings that contain any medical doctor offices or the offic- es of any other professional practitioner authorized to prescribe the use of medical marijuana. *No smoking, burning or consumption of any product containing marijuana or marijuana- related products shall be permitted on the premises of an RMD. *Signage for the RMD shall include the following language: "Registration card issued by the MA Department of Public Health required."The required text shall be a minimum of two inches in height. *All aspects of an RMD relative to the acquisition, cultivation, possession, processing, sales, distribution, dispensing, or administration of marijuana,products containing marijuana, re- lated supplies, or educational materials must take place at a fixed location within a fully en- closed building and shall not be visible from the exterior of the business. *Ventilation—all facilities shall be ventilated in such a manner that: — 110 — *No pesticides,insecticides or other chemicals or products used in the cultivation or pro- cessing are dispersed into the outside atmosphere;and *No odor from marijuana or its processing can be detected by a person with an unimpaired and otherwise normal sense of smell at the exterior of the MMD or at any adjoining use or property. *The permit holder shall file a copy of any Incident Report required under 105 CMR 725.110(F)with the Zoning Enforcement Officer and the SPCA within 24 hours of creation by the RMD. Such reports may be redacted as necessary to comply with any applicable state or federal laws and regulations. *All Special Permit holders for uses under this section shall provide the Police Department, Fire Department, Building Commissioner, Board of Health, and Special Permit Granting Authority with the names, phone numbers, mailing and email addresses of all management staff and key-holders,including a minimum of two (2) operators or managers of the facilities identified as designated contact persons to whom notice should be made if there are operating problems associated with any use under this section. All such contact information shall be updated as needed to keep it current and accurate. *The permit holder shall file a copy of any summary cease and desist order, cease and desist order, quarantine order, summary suspension order, order limiting sales, notice of a hearing, or final action issued by DPH or the Division of Administrative Law Appeals, as applicable, regarding the RMD with the Zoning Enforcement Officer and SPCA within 48 hours of receipt by the RMD. *The special permit shall lapse upon the expiration or termination of the applicant's registra- tion by DPH. *The permit holder shall notify the Zoning Enforcement Officer and SPCA in writing within 48 hours of the cessation of operation of the RMD or the expiration or termination of the permit holder's registration with DPH. *Prohibition Against Nuisances:No use shall be allowed in the RMD which creates a nuisance to abutters or to the surrounding area,or which creates any hazard,including but not limited to,fire, explosion,fumes,gas,smoke,odors,obnoxious dust,vapors,offensive noise or vibration,flashes, glare,objectionable effluent or electrical interference,which may impair the normal use and peaceful enjoyment of any property,structure or dwelling in the area. *Annual Reporting:Each RMD permitted under this Bylaw shall,as a condition of its special permit,file an annual report to and appear before the Special Permit Granting Authority and the Town Clerk no later than January 31st,providing a copy of all applicable state licenses for the Facility and/or its owners and demonstrate continued compliance with the conditions of the Special Permit. *The special permit shall be limited to the current applicant and shall lapse if the permit holder ceases operating the RMD. 8.12.10 Severability:The provisions of this Bylaw are severable.If any provision,paragraph,sentence, or clause of this Bylaw or the application thereof to any person,establishment,or circumstances shall be held invalid,such invalidity shall not affect the other provisions or application of this Bylaw. Planning Board — 111 — Article 32. Amend Zoning Map—Medical Marijuana Treatment Facilities Overlay District. UNANIMOUS VOTE to amend the Zoning Map for the Town of North Andover to rezone the following parcels, as identified on the 2014 Assessor's Map:Map 77 Parcels 3, 12, 13, 14&17,to allow for the installation and operation of Medical Marijuana Dispensaries, as described in the Zoning Bylaw—Section 8.12 Medical Marijuana Overlay District, Map 77 Parcel 13 Northerly 100'+/-by Holt Road Easterly 370'+/-by Lot 4 Southerly 130'+/-by Parcel 3 Westerly 400'+/-by Clark Street Map 77 Parcel 14 Northerly 245'+-by Holt Road Easterly 330'+/-by Lot 3 Southerly 250"+/-by Parcel 3 Westerly 370'+/-by Lot 7 Map 77 Parcel 3 Northerly by 410'+/-by Lots 3,4,and 7 Easterly 250'+/-by City of Lawrence Airport Commission Southerly 465+/-by City of Lawrence Airport Commission Westerly 460'+/-by Clark Street Map 77 Parcel 12(3 sided lot) Northerly 410"+/-by Parcel 17 Easterly 270'+/-by Clark Street Southerly 285'+/-by City of Lawrence Airport Commission Map 77 Parcel 17 Northerly 120'+/-by City of Lawrence Airport Commission Easterly 210"+/-by Clark Street Southerly 410"+/-by Parcel 12 Westerly 590'+/-by City of Lawrence Airport Commission Planning Board Article 33. Amend Zoning Bylaw—Section 18: Downtown Overlay District. UNANIMOUS VOTE to amend the Town of North Andover Zoning Bylaw, Section 18—Downtown Overlay District,in the following manner: Section 18 Downtown Overlay District Section 18.1 Location and Applicability:Amend the first sentence in the second paragraph to read,An application for the Downtown Overlay District shall be in accordance with the standards set forth in this section and shall be reviewed by the PlanningBoard,as Special Permit Granting Authority, or otherwise." Section 18.2 Permitted Uses:Add the following uses to the list of uses allowed: 22.All uses allowed by right in the underlying zoning districts are allowed. — 112 — Add the following uses to the list of uses allow allowed by Special Permit: 10.All uses allowed in the underlying zoning district by Special Permit are allowed by Special Permit issued by the Planning Board Add Section 18.7 Waivers: Where it can be demonstrated to the Planning Board,as the Special Permit Granting Authority,that the following waivers are consistent with one or more of the purposes of this District,as defined in Section 18.0,would enhance or facilitate the planning,design and/or layout of existing or new structures or uses permitted within the District,and would not interfere or negatively impact abutting properties,the Planning Board may grant those waivers: a. Waivers of limited dimensional,design,or other criteria set forth in Sections 18.3 through 18.6 of the Downtown Overlay District; b. Waivers of other limited dimensional,design,density,or other criteria under the Zoning Bylaw. c. Notwithstanding anything to the contrary in the Zoning Bylaw,no waiver shall be granted for building height in excess of the building height existing on the parcel as of the date of the adoption of this amendment,or for floor area ratio in excess of 2.0. d. The Planning Board's authority to grant waivers as described herein shall expire two (2)years after the date of adoption of this Section 18.7. Add Section 18.8 Underlying Zoning: The Downtown Overlay District is an overlay district superimposed on all underlying zoning districts. Within the Downtown Overlay District,the regulations for use,dimension,and all other provisions of the Zoning Bylaw governing the underlying zoning district(s)shall remain in full force,except for those sites undergoing development pursuant to Section 18. To the extent that there is a conflict between the provisions of the underlying zoning and the provisions of the Downtown Overlay District,the provision of Section 18 shall govern,unless waived by the Planning Board,in accordance with Section 18.7. Planning Board Section 18 as amended to read as follows: Section 18 Downtown Overlay District 18.0 Purpose. Downtown zoning is the creation of a specific zoning overlay district for the unique needs of small mixed use commercial areas;to provide goods,services and housing in a more compact environment; to encourage redevelopment;and,to create a vibrant,walkable,pedestrian-and bicycle-friendly environment.The Downtown Overlay District seeks to preserve and enhance the existing mixed uses of downtown North Andover. It is hereby declared to be the intent of the Downtown Overlay District to establish reasonable standards that permit and control mixed residential,commercial,governmental,institutional,and office uses in the Town of North Andover.Furthermore,it is the intent of this district to: 1. Encourage a diverse mix of residential,business,commercial,office,governmental,institutional and entertainment uses for workers,visitors,and residents. 2. Encourage mixed uses within the same structure. 3. Encourage first floor retail space 4. Encourage a pedestrian and bicycle friendly environment so that commercial enterprises and consumer services do not rely on automobile traffic to bring consumers into the area. 5. Permit uses that promote conversion of existing buildings in a manner that maintains and enhances the visual character and architectural scale of existing development within the district. — 113 — 6. Minimize visual and functional conflicts between residential and nonresidential uses within and abutting the district. 7. Allow for more compact development than maybe permitted in other zoning districts to reduce the impacts of sprawl. 8. Encourage consolidation of curb cuts for vehicular access and promote more efficient and economical parking facilities. 9. Encourage uses that minimize noise and congestion. 10.Allow for an appropriate density of land uses and people to support a vibrant downtown. This bylaw is intended to be used in conjunction with the existing zoning and other regulations as adopted by the town,including historic district regulations,design guidelines,and other local bylaws designed to encourage appropriate and consistent patterns of village development. 18.1 Location and Applicability The Downtown Overlay District shall consist of the area delineated on the Town's zoning map,but shall include the area along Main Street from Sutton Street to Merrimac Street;Water Street from the intersection with Main Street to High Street,including the mill buildings;portions of Waverley Road,First Street and Second Street;Ellis Court;School Street;Saunders Street;and Cleveland Street.Said area is described on the Town of North Andover Zoning Map as amended through Annual Town Meeting 2008. An application for the Downtown Overlay District shall be in accordance with the standards set forth in this section.An application for the Downtown Overlay shall be in accordance with the standards set forth in this section and shall be reviewed by the Planning Board,as Special Permit Granting Authority,or otherwise. 18.2 Permitted Uses The following uses shall be permitted by right in the Downtown Overlay District: 1. General merchandise retail stores and salesrooms 2. Specialty food stores,retail bakeries and coffees shops 3. Sporting goods stores 4. Craft,hobby,book and music stores 5. Art gallery 6. Hardware stores 7. Convenience stores 8. Drug stores,pharmacies 9. Banks 10. Professional offices 11. Medical or dental offices 12. Business services such as copying and mailing services 13. Travel agency 14. Municipal,civic or public service buildings,such as post office,telephone exchanges,town offices, school,library,museum,or place of worship 15. Hall,club,theater,or other place of amusement or assembly 16. Food services establishments such as full or limited service restaurants and drinking establishments 17. Indoor amusements 18. Bed and breakfast facility or inn with six(6)rooms or less 19. Multi-family dwelling 20. Mixed-use structures 21. Any accessory use customarily incident to any of the above permitted uses,provided that such accessory use shall not be injurious,noxious,or offensive to the neighborhood. 22.All uses allowed by right in the underlyin z8 onin8 districts are allowed. — 114 — The following uses shall be permitted by special permit in the Downtown Overlay District: 1. Drive-thrus for any of the above allowed uses 2. Free-standing automated teller machine(ATM) 3. Day care center 4. Bed and breakfast facility or inn with more than six(6)rooms 5. Hotel or motel 6. Funeral homes 7. Any retail use listed above as an allowed use that exceeds a gross floor area of 25,000 sq.ft. 8. Public garage 9. All uses allowed in the underlying zoning districts are allowed. 18.3 Design Guidelines The Downtown Overlay District is an integral commercial center;it represents an important part of the Town's heritage and its character creates an identity for North Andover today.Compatible design helps to enhance the quality of life for all residents while strengthening the economic viability of the Downtown. The Downtown Overlay District Design Guidelines seek to encourage visual harmony and historic integrity,and encourage creative design solutions.The Design Guidelines do not dictate style,but rather suggest a variety of choices for achieving design compatibility within the Downtown Overlay District. The Design Guidelines can also help to protect the property values by encouraging improvements that maintain buildings as viable assets. The Design Guidelines apply only within the Downtown Overlay District and supplement the site and design criteria provisions of this Section. 18.3.1 Urban Design Features a. Alleys,parks or open spaces,patios,sidewalks and planting strips,outdoor seating areas for private commercial use b. Building type(for example townhouse,storefront retail) c. Signage 18.3.2 Architectural features for any work consisting of an increase in floor area through either the place- ment or construction of a new principal structure,a new accessory structure,an addition,alteration or rehabilitation to a principal or accessory structure,a conversion of one use type to another,or any new use or structure requiring a curb cut. a. Building facades(new and rehabilitation&repair) b. Exterior features c. Building height,setbacks and build-to-lines d. Roofs and rooftop features e. Exterior materials,doors and windows f. Exterior colors g. Signage,flags and banners h. Sign design standards as applicable and consistent with Section 6 of this Bylaw i. Exterior illumination 18.3.3 On-site and off-site improvements a. Fences and walls b. Patio,square,or plaza c. Landscaping with areas and plants noted d. Special pavement and sidewalk treatment e. Setbacks and sidewalk and utility easements f. Street and parking lot lighting g. Street furniture,trash containers,benches news racks,kiosks h. Parking standards including shared parking agreements — 115 — i. Refuse storage and access j. Traffic circulation plan and street improvements as needed to relieve excessive congestion 18.4 Site and Design Criteria. The site and design criteria within this Section shall be applicable to all residential projects greater than three(3) units,mixed use and nonresidential property. 18.4.1 Site Access New curb cuts on existing public ways shall be minimized.To the extent feasible,access to businesses shall be provided through one of the following methods: (a)through a common driveway serving adjacent lots or premises or(b)through an existing side or rear street thus avoiding the principal thoroughfare.Garages doors or loading docks are prohibited on the front facade of any building facing the street. a. Curb cuts within two hundred(200)feet of intersections are subject to site plan review. b. Curb cuts greater than thirty(30)feet and driveway openings greater that twenty(20)feet are subject to a site plan review.Full width curb cuts are prohibited. 18.4.2 Parking Requirements The following criteria are included to ensure that new and renovated offstreet parking areas are constructed in accordance with the Downtown character and the provisions of this bylaw. a. Parking areas shall be located to the side and rear of the structure.Parking areas shall be designed such that parking is prohibited within the required front yard setback. b. Parking areas shall include provisions for the"parking"of bicycles in bicycle racks in locations that are safely segregated from automobile traffic and parking.For parking areas of ten(10) or more spaces,bicycle racks facilitating locking shall be provided to accommodate one(1)bicycle per twenty(20)parking spaces or fraction thereof C. Where possible,parking areas shall be interconnected in a manner that allows the unobstructed flow of pedestrians between businesses and the parking areas. d. The applicant may reduce the number and/or the location of the required parking spaces as described in Section 8.1 of this Bylaw.Consideration may be given to the hours of usage of the proposed use/structure,hours of usage of other uses/structures within the Downtown Overlay District,amount of shared parking with other uses,as well as other relevant information to assist the granting authority in determining the need for additional parking for motor vehicles. Relief may be granted provided that it is demonstrated that the additional demand for such spaces can be reasonably met without placing an undue burden on existing facilities already relying on such spaces under the following conditions: i. Allow parking areas to be shared with adjoining businesses based upon having peak user demands at different times provided that all businesses sharing parking are located on the same lot. ii. On-street parking spaces within a radius of two hundred(200)feet may be counted as part of the required parking need. iii.Parking spaces on a separate lot or lots within a radius of six hundred(600)feet,measured from the lot line of the principal use,maybe counted. e. Where such parking abuts a residential district,it shall not be located within less than five(5) feet of the lot line,and a wall or fence of solid appearance or a tight evergreen hedge having a height of no less than five(5)feet shall be erected and maintained between such area and the property in the residential district. 18.4.3 Pedestrian and Bicycle Circulation Provision for safe and convenient pedestrian access shall be incorporated into plans for new construction of buildings and parking areas,and should be designed in concert with landscaping plans noted below. New construction should improve pedestrian access to buildings,sidewalks and parking areas,and should be completed with consideration of safety,handicapped access and visual quality.Where appropriate, — 116 — applicants are encouraged to provide pedestrian and/or bicycle paths connecting their site with abutting areas in order to promote pedestrian and bicycle circulation and safety.When parking is located in the rear,pedestrian access via a pedestrian-oriented alley or walkway through to the primary street is encouraged. 18.4.4 Landscaping and Appearance Appropriate landscaping and design shall be incorporated into new and expanded development within the district.Landscape design plans shall be prepared by a landscape architect,although the permitting authority may accept a plan prepared by someone other than a landscape architect if it believes the plan meets the design guidelines noted below and is in concert with the intent of this regulation.Landscape plans shall show the type,size and location of all proposed plantings. a. Side yards shall be screened or landscaped as follows: ii. Where the distance between structures on adjacent lots is ten(10)feet or less the side yard shall be screened from public view by a solid fence or tight landscaping having a height of no less than five(5)feet.A chain link fence shall not be permitted. iii.Where the distance between structures is greater than ten(10)feet the space shall be appropriately landscaped. b. Large parking areas(e.g.greater than twenty(20)parking spaces)shall be separated by landscaped islands of at least eight(8)feet in width,or in the alternative shall devote at least five (5)percent of the interior of the parking lot to landscaping.In addition,a minimum of one(1) shade tree shall be planted for every six(6)parking spaces required or built,within appropriate locations on the lot(s).The plan shall show the location of plantings,including use of plantings to buffer neighboring properties,and along the street frontage and pedestrian ways.Trees planted within parking areas shall be planted in protected pervious plots of at least sixty(60) square feet of area.Parking areas shall be screened with trees or plantings at least three(3)feet in height. c. A minimum of one(1)shade tree shall be planted for every forty(40)feet of street frontage or fraction thereof Trees may be clustered and should be located between the sidewalk and the curb or in tree wells installed in the sidewalk. d. Streetscapes shall be accentuated with benches,planters,and other similar amenities to encourage pedestrian use. e. Any exterior lighting shall be directed downward to reduce glare onto adjacent properties. 18.5 Intensity of Use within the Downtown Overlay District. 18.5.1 Location and Distribution of Uses The ground floor of the front facade of a commercial building or a mixed use residential/commercial building shall be occupied by business uses only.When the rear facade faces a parking area,the ground floor shall also be occupied by business uses only,including in the rear of buildings. 18.5.2 Height To accomplish the purposes of this Section,the Planning Board is authorized to grant a Special Permit to allow an increase in the height of structures either in existence,as reconstructed,or as new construction, so that the total height does not exceed forty-five(45)feet or three(3)stories within this overlay district.If any construction of a structure increases the intensity of use over what was previously in existence on the lot,the Planning Board shall allow this increase only upon a finding that the additional height is consistent with the scale of adjacent structures and is necessary to maintain the area's character.The Planning Board must further find that the relaxation of height limitations will not interfere or negatively impact abutting properties,particularly property used or zoned for single-family residential purposes. 18.5.3 Setback In keeping with the purpose of the Downtown Overlay District it is recognized that the areas have developed with distinct development patterns to match the traditional needs of the small lots and buildings that have made Downtown unique.Building setbacks within the overlay district may allow establishment of average setbacks so that redevelopment and new development will be in keeping with the — 117 — existing streetscape layout.To accomplish the purposes of this Section,the Building Inspector is authorized to allow a calculation of front,side and rear setback standards for new or preexisting structures as follows: a. Front,side and rear building setbacks shall be calculated as follows:The maximum front and street-side building setback may not exceed the average front yard depth of the nearest two(2)lots on both sides of the subject lot or ten(10)feet,whichever is less. i. If one or more of the lots required to be included in the averaging calculation is vacant,such vacant lot(s)will be deemed to have a yard depth of zero feet. ii. Lots fronting a street other than the subject lot or separated from the subject lot by a street or alley may not be used in the computing average. iii.When the subject lot is a corner lot,the average setback will be computed on the basis of the two (2) adjacent lots that front on the same street as the subject lot. iv. When the subject lot abuts a corner lot fronting on the same street,the average setback will be computed on the basis of the abutting corner lot and the nearest two(2)lots that front on the same street as the subject lot. Calculating Setbacks Example:(12 ft.+8 f.+12 ft.+0 ft.)14=8 ft. subject lot vacant lot average setback F�ft8ft 12 ft. setback=0 subject lot subject lot 3 1u fused i n cant ludect 2 lots used in calculation not Of in calculation lculatiun t- H 0 STREET STREET subject lot i � - w Slots used in cal culat`n .. STREET b. The following exceptions to the maximum front and street side building setbacks apply: i. A portion of the building may be set back from the maximum setback line in order to provide an articulated facade,window box,hanging sign,awning or marquee,or to accommodate a building entrance feature,provided that the total area of the space created must not exceed one(1)square foot for every linear foot of building frontage. ii. A building may be set back farther than the maximum setback in order to accommodate an outdoor eating area.In order to preserve the continuity of the streetwall,the building maybe set back no more than twelve(12)feet from the front or street side property line or at least forty(40)percent of the building facade must be located at the maximum setback line. — 118 — Exceptions to Minimum Front and Street Side Setbacks sib rt,x sa rt sr)o sq.rr j 121 Lot t ine 50 R 30 h. 18.5.4 Orientation Buildings shall be oriented parallel with the front setback line to establish and preserve a consistent building line,with primary entrances oriented toward the street.The front facade of a principal building shall face onto a public street and not towards a parking lot. 18.5.5 Articulation Large expanses of blank walls are prohibited.A single building with a width of more than sixty(60)feet facing a street line or a public or municipal parking area shall be divided visually into sub-elements which, where appropriate,express the functional diversity within the building.Major articulations shall be spaced no farther apart than twenty-five(25)percent of the building length at street level.The articulation of a facade on a building shall be continued on all sides visible from a public street or courtyard. 18.5.6 Transparency The intent of these transparency standards is to maintain a sense of visual continuity and provide interest for pedestrians by ensuring that the solid-to-void ratio(the percentage of glass to solid wall surface that is used on a building face) appears similar to that seen in traditional store fronts. a. A minimum of sixty(60)percent of the street-facing building facade between two(2)feet and eight(8)feet in height must be comprised of clear windows that allow views of indoor nonresidential space or product display areas. b. The bottom edge of any window or product display window used to satisfy the transparency standard of paragraph(a) above may not be more than three(3)feet above the adjacent sidewalk. c. Product display windows used to satisfy these requirements must have a minimum height of four(4)feet and be internally lit. 18.5.7 Doors and Entrances a. Buildings must have a primary entrance door facing a public sidewalk.Entrances at building corners may be used to satisfy this requirement. b. Building entrances may include doors to individual shops or businesses,lobby entrances, entrances to pedestrian-oriented plazas,or courtyard entrances to a cluster of shops or businesses. c. The main business entrance to each ground floor business shall be accentuated by larger doors, signs,roof overhangs,hooded front door,canopy or similar means. d. Where a building has a street frontage greater than one hundred(100)feet,doors must be placed an average of one door every fifty(50)feet of frontage. 18.5.8 Utilities Underground utilities for new and redeveloped building may be required unless physically restricted or blocked by existing underground obstructions. — 119 — 18.6 Special Permit Standards and Criteria In addition to the specific criteria regarding the grant of a special permit contained in Section 10.31 of this bylaw,the Planning Board shall issue a special permit only after consideration of the following: a. Impact on the neighborhood visual character,including architectural design,views and vistas; and b. Degree to which the proposed use will share an access driveway and/or parking with an adjacent use and avoids new curb cuts. Section 18.7 Waivers: Where it can be demonstrated to the Planning Board,as the Special Permit Granting Authority,that the following waivers are consistent with one or more of the purposes of this District,as defined in Section 18.0,the Planning Board may grant those waivers: would enhance or facilitate the planning,design and/or layout of existing or new structures or uses permitted within the District,and would not interfere or negatively impact abutting properties, a. Waivers of limited dimensional,design,or other criteria set forth in Sections 18.3 through 18.6 of the Downtown Overlay District; b. Waivers of other limited dimensional,design,density,or other criteria under the Zoning Bylaw. c. Notwithstanding anything to the contrary in the Zoning Bylaw,no waiver shall be granted for building height in excess of the building height existing on the parcel as of the date of the adoption of this amendment,or for floor area ratio in excess of 2.0. d. The Planning Board's authority to grant waivers as described herein shall expire two (2)years after the date of adoption of this Section 18.7. Section 18.8 Underlying Zoning: The Downtown Overlay District is an overlay district superimposed on all underlying zoning districts. Within the Downtown Overlay District,the regulations for use,dimension,and all other provisions of the Zoning Bylaw governing the underlying zoning district(s)shall remain in full force,except for those sites undergoing development pursuant to Section 18. To the extent that there is a conflict between the provisions of the underlying zoning and the provisions of the Downtown Overlay District,the provision of Section 18 shall govern,unless waived by the Planning Board,in accordance with Section 18.7. The 2014 Annual Town Meeting for the Town of North Andover dissolved by Unanimous Vote at 9:OOPM. Respectfully submitted, Joyce A. Bradshaw, CMMC,Town Clerk — 120 — Financial Reports-July 1, 2013-June 30, 2014 Town of North Andover General Fund Revenue Executive Summary For the Period 07/01/2013 through 06/30/2014 Fiscal Year: 2013-2014 07/01/2013-06/30/2014 Year To Date Bud et Budget Balance REVENUES PROPERTY TAXES Personal Property Tax(+) $2,369,468.61 $2,369,468.61 $2,398,221.76 $28,753.15 98.8% Real Estate Tax(+) $60,227,127.32 $60,227,127.32 $61,043,605.42 $816,478.10 98.7% Tax Title(+) $594,247.22 $594,247.22 $0.00 ($594,247.22) 0.0% Defferred Property Taxes(+) $14,450.53 $14,450.53 $0.00 ($14,450.53) 0.0% Sub-total:PROPERTY TAXES $63,205,293.68 $63,205,293.68 $63,441,827.18 $236,533.50 99.6% LOCAL RECEIPTS MotorVehcile Excise(+) $4,362,822.78 $4,362,822.78 $3,600,000.00 ($762,822.78) 121.2% Jet Fuel(+) $25,032.34 $25,032.34 $20,550.83 ($4,481.51) 121.8% Meals Tax(+) $478,253.51 $478,253.51 $453,587.76 ($24,665.75) 105.4% Hotel Occupancy Excise Tax(+) $81.69 $81.69 $0.00 ($81.69) 0.0% Penalties/Interest Prop Tax(+) $132,629.45 $132,629.45 $100,000.00 ($32,629.45) 132.6% Penalties/Interest Motor Veh(+) $20,086.27 $20,086.27 $19,000.00 ($1,086.27) 105.7% Penalties/Interest Tax Title(+) $318,304.42 $318,304.42 $35,000.00 ($283,304.42) 909.4% Over/Under(+) $579.24 $579.24 $0.00 ($579.24) 0.0% Lien Certificate(+) $30,305.00 $30,305.00 $36,149.20 $5,844.20 83.8% Treasures Demand Fee(+) $77,085.54 $77,085.54 $61,176.83 ($15,908.71) 126.0% Payment in Lieu of Taxes(+) $35,336.32 $35,336.32 $30,000.00 ($5,336.32) 117.8% Wheelabrator Annual Payment(+) $296,587.00 $296,587.00 $285,269.85 ($11,317.15) 104.0% Wheelabrator Host Fee(+) $1,535,095.68 $1,535,095.68 $1,500,000.00 ($35,095.68) 102.3% Ambulance Sevices(+) $958,290.87 $958,290.87 $863,833.18 ($94,457.69) 110.9% Dog Fees(+) $41,250.00 $41,250.00 $45,678.25 $4,428.25 90.3% Town Clerk Fees(+) $26,720.50 $26,720.50 $26,624.70 ($95.80) 100.4% Cable Fees(+) $5,246.00 $5,246.00 $5,000.00 ($246.00) 104.9% Clerk Violation Fees(+) $3,070.00 $3,070.00 $2,000.00 ($1,070.00) 153.5% Passports(+) $20,875.00 $20,875.00 $19,000.00 ($1,875.00) 109.9% Clerk Application Fees(+) $100.00 $100.00 $1,000.00 $900.00 10.0% Conservation Fees(+) $593.20 $593.20 $659.12 $65.92 90.0% Planning Board Fees(+) $7,573.00 $7,573.00 $22,628.99 $15,055.99 33.5% Police Fees(+) $5,102.05 $5,102.05 $2,880.93 ($2,221.12) 177.1% Building Inspection Fees(+) $634,902.81 $634,902.81 $600,000.00 ($34,902.81) 105.8% Plumbing Inspection Fees(+} $62,485.15 $62,485.15 $60,000.00 ($2,485.15) 104.1% Electrical Inspection Fees(+) $94,360.12 $94,360.12 $86,391.84 ($7,968.28) 109.2% Weights and Measureres(+) $5,633.00 $5,633.00 $3,408.00 ($2,225.00) 165.3% Recycling Fees(+) $61,686.13 $61,686.13 $49,000.00 ($12,686.13) 125.9% School Medicaid Reimbursment(+) $205,915.70 $205,915.70 $150,000.00 ($55,915.70) 137.3% School Misc(+) $7,207.02 $7,207.02 $0.00 ($7,207.02) 0.0% Library Fines(+) $2,056.37 $2,056.37 $0.00 ($2,056.37) 0.0% Bathing Beach Receipts(+) $24,882.00 $24,882.00 $30,000.00 $5,118.00 82.9% Rental Income(Thrift'Shop,Credit $12,050.00 $12,050.00 $11,580.00 ($470.00) 104.1% union)(+) Cell Tower Lease(+) $95,978.03 $95,978.03 $84,554.00 ($11,424.03) 113.5% Assessors Receipts(+) $1,448.00 $1,448.00 $1,700.00 $252.00 85.2% Town Clerk Misc Receipts(+} $250.00 $250.00 $0.00 ($250.00) 0.0% Misc Departmental Receipts(+) $30,481.41 $30,481.41 $2,017.00 ($28,464.41) 1511.2% - 121 - Town of North Andover General Fund Revenue Executive Summary For the Period 07/01/2013 through 06/30/2014 Fiscal Year: 2013-2014 07/01/2013-06/30/2014 Year To Date Budget Budget Balance Board of Appeals Receipts(+) $2,200.00 $2,200.00 $3,000.00 $800.00 73.3% Police 10%Admin Fee(+) $37,890.63 $37,890.63 $35,000.00 ($2,890.63) 108.3% Fire Alarm Box Permit Fee(+} $21,465.00 $21,465.00 $21,476.00 $11.00 99.9% Veterans Benefits(Boxford)(+) $17,411.26 $17,411.26 $17,083.16 ($328.10) 101.9% Liquor Licenses(+) $95,275.00 $95,275.00 $91,755.00 ($3,520.00) 103.8% Other Alcohol Licenses(+) $3,700.00 $3,700.00 $800.00 ($2,900.00) 462.5% Food Licenses(+) $4,750.00 $4,750.00 $3,700.00 ($1,050.00) 128.4% Misc Licenses(+) $11,430.00 $11,430.00 $10,600.00 ($830.00) 107.8% License to Carry Firearms(+) $6,800.00 $6,800.00 $3,297.50 ($3,502.50) 206.2% Fire Permits(+) $47,345.00 $47,345.00 $39,739.38 ($7,605.62) 119.1% Gas Permits(+) $32,880.60 $32,880.60 $16,198.84 ($16,681.76) 203.0% Fishing and Boating Licenses(+) $5,835.00 $5,835.00 $4,706.00 ($1,129.00) 124.0% Burial Permits(+) $3,858.00 $3,858.00 $2,314.00 ($1,544.00) 166.7% Health Dept Fees(+) $60,679.80 $60,679.80 $57,851.10 ($2,828.70) 104.9% Parking Fines(+) $14,110.00 $14,110.00 $19,703.45 $5,593.45 71.6% Court Fines(+) $84,604.50 $84,604.50 $95,860.82 $11,256.32 88.3% False Alarm Fines(+) $4,900.00 $4,900.00 $5,880.00 $980.00 83.3% Interest Income(+) $121,626.68 $121,626.68 $118,400.00 ($3,226.68) 102.7% Sub-total:LOCAL RECEIPTS $10,197,117.07 $10,197,117.07 $8,756,055.73 ($1,441,061.34) 116.5% MISC NON RECURRING Misc Non Recurring- $4,694.13 $4,694.13 $0.00 ($4,694.13) 0.0% Intergovernmental(+) Misc Non Recurring-Hopkinton Bill $42,665.47 $42,665.47 $0.00 ($42,665.47) 0.0% (+) Misc Non Recurring -Departmental $121,841.69 $121,841.69 $0.00 ($121,841.69) 0.0% (+) Misc Non Recurring-Medicare Part $84,517.52 $84,517.52 $95,000.00 $10,482.48 89.0% D(+) Misc Non Recurring-Bond Premium $143,149.43 $143,149.43 $0.00 ($143,149.43) 0.0% (+) Sub-total:MISC NON RECURRING $396,868.24 $396,868.24 $95,000.00 ($301,868.24) 417.8% STATE AID Exemption:Vets,Blind&Surviving $70,251.00 $70,251.00 $73,484.00 $3,233.00 95.6% Spouse(+) State Owned Land(+) $196,920.00 $196,920.00 $196,920.00 $0.00 100.0% Veterens Benefits(+) $152,915.00 $152,915.00 $212,557.00 $59,642.00 71.9% Unrestricted General Government $1,774,377.00 $1,774,377.00 $1,774,377.00 $0.00 100.0% Aid(+) Chapter 70(+) $7,163,024.00 $7,163,024.00 $7,068,576.00 ($94,448.00) 101.3% Charter Tuition Assessment $78,438.00 $78,438.00 $11,096.00 ($67,342.00) 706.9% Reimbursement(+) School Building Assistance(+) $412,131.00 $412,131.00 $412,131.00 $0.00 100.0% Sub-total:STATE AID $9,848,056.00 $9,848,056.00 $9,749,141.00 ($98,915.00) 101.0% TRANSFER/OTHER REVENUE SOURCES Transfer from Sewer(+) $413,525.00 $413,525.00 $413,525.00 $0.00 100.0% Transfer from Water(+) $878,741.00 $878,741.00 $878,741.00 $0.00 100.0% Transfer from Stevens Estate(+) $46,460.00 $46,460.00 $46,460.00 $0.00 100.0% - 122 - Town of North Andover General Fund Revenue Executive Summary For the Period 07/01/2013 through 06/30/2014 Fiscal Year: 2013-2014 07/01/2013-06/30/2014 Year To Date Budget Budget Balance Transfer from Special Revenue(+) $62,700.00 $62,700.00 $62,700.00 $0.00 100.0% Transfer from Capital(+) $611.12 $611.12 $0.00 ($611.12) 0.0% Transfer from-GLSD(+) $141,336.38 $141,336.38 $141,336.38 $0.00 100.0% Sub-total:TRANSFER/OTHER $1,543,373.50 $1,543,373.50 $1,542,762.38 ($611.12) 100.0% REVENUE SOURCES Total:REVENUES $85,190,708.49 $85,190,708.49 $83,584,786.29 ($1,605,922.20) 101.9% NET ADDITION DEFICIT $85,190,708.49 $85,190,708.49 $83,584,786.29 ($1,605,922.20) 101.9% — 123 — Town of North Andover General Fund Expense Executive Summary - For the Period 07/01/2013 through 06/30/2014 Fiscal Year: 2013-2014 ❑ Include Pre Encumbrance Budget Range To Date Year To Date Balance Encumbrance Budget Balance EXPENSES GENERAL GOVERNMENT Town Moderator(+) $825.00 $500.00 $500.00 $325.00 $0.00 $325.00 39.4% Town Manager(+) $312,969.57 $310,824.74 $310,824.74 $2,144.83 $0.00 $2,144.83 0.7% Finance Committee(+) $795.00 $408.85 $408.85 $386.15 $0.00 $386.15 48.6% Assistant Town Manager(+) $56,175.89 $55,766.42 $55,766.42 $409.47 $0.00 $409.47 0.7% Human Resources(+) $85,528.80 $83,552.06 $83,552.06 $1,976.74 $0.00 $1,976.74 2.3% Town Accountant(+) $226,454.36 $218,517.61 $218,517.61 $7,936.75 $7,767.55 $169.20 0.1% Assessors(+) $310,567.97 $304,632.23 $304,632.23 $5,935.74 $3,240.00 $2,695.74 0.9% Treasurer/Collector(+) $305,595.37 $300,032.58 $300,032.58 $5,562.79 $0.00 $5,562.79 1.8% Legal(+) $155,586.19 $100,049.25 $100,049.25 $55,536.94 $0.00 $55,536.94 35.7% Town Clerk(+) $281,215.19 $262,269.46 $262,269.46 $18,945.73 $0.00 $18,945.73 6.7% Community Development(+) $221,514.89 $200,887.81 $200,887.81 $20,627.08 $0.00 $20,627.08 9.3% N Planning(+) $112,368.65 $108,924.64 $108,924.64 $3,444.01 $0.00 $3,444.01 3.1% Conservation(+) $92,680.40 $89,235.71 $89,235.71 $3,444.69 $0.00 $3,444.69 3.7% Board of Appeals(+) $37,316.03 $36,990.83 $36,990.83 $325.20 $0.00 $325.20 0.9% Sub-total:GENERAL GOVERNMENT $2,199,593.31 $2,072,592.19 $2,072,592.19 $127,001.12 $11,007.55 $115,993.57 5.3% PUBLIC SAFETY Police(+) $4,587,399.24 $4,203,036.18 $4,203,036.18 $384,363.06 $36,846.99 $347,516.07 7.6% Fire(+) $4,640,687.72 $4,628,974.41 $4,628,974.41 $11,713.31 $11,713.31 $0.00 0.0% Public Safety Reserve(+) $208,714.48 $208,714.48 $208,714.48 $0.00 $0.00 $0.00 0.0% Inspection Services(+) $266,854.27 $256,665.80 $256,665.80 $10,188.47 $246.00 $9,942.47 3.7% Emergency Management(+) $31,475.00 $30,400.43 $30,400,43 $1,074.57 $0.00 $1,074.57 3.4% Sub-total:PUBLIC SAFETY $9,735,130.71 $9,327,791.30 $9,327,791.30 $407,339.41 $48,806.30 $358,533.11 3.7% EDUCATION Franklin School(+) $4,445,525.51 $4,438,387.40 $4,438,38T40 $7,138.11 $7,138.11 $0.00 0.0% Systemwide(+) $4,037,580.10 $4,036,929.51 $4,036,929.51 $650.59 $650.59 $0.00 0.0% High School(+) $8,964,277.81 $8,953,529.51 $8,953,529.51 $10,748.30 $10,419.30 $329.00 0.0% Central Office(+) $1,080,856.09 $1,079,707.47 $1,079,707.47 $1,148.62 $1,081.55 $67.07 0.0% Town of North Andover General Fund Expense Executive Summary - For the Period 07/01/2013 through 06/30/2014 Fiscal Year: 2013-2014 ❑ Include Pre Encumbrance Budget Range To Date Year To Date Balance Encumbrance Budget Balance Middle School(+) $6,652,460.23 $6,646,791.40 $6,646,791.40 $5,668.83 $4,809.23 $859.60 0.0% Atkinson School(+) $2,394,122.49 $2,390,154.49 $2,390,154.49 $3,968.00 $3,968.00 $0.00 0.0% Kittridge School(+) $1,764,094.44 $1,761,848.78 $1,761,848.78 $2,245.66 $2,245.66 $0.00 0.0% Thomson School(+) $2,027,004.69 $2,023,802.28 $2,023,802.28 $3,202.41 $3,191.50 $10.91 0.0% Sargent School(+) $3,568,275.64 $3,565,699.64 $3,565,699.64 $2,576.00 $2,501.05 $74.95 0.0% All Elementary(+) $168,627.21 $168,627.21 $168,627.21 $0.00 $0.00 $0.00 0.0% Out of District(+) $4,760,311.79 $4,760,193.91 $4,760,193.91 $117.88 $0.00 $117.88 0.0% Sub-total:EDUCATION $39,863,136.00 $39,825,671.60 $39,825,671.60 $37,464.40 $36,004.99 $1,459.41 0.0% PUBLIC WORKS Administration(+) $397,912.80 $385,959.94 $385,959.94 $11,952.86 $3,290.22 $8,662.64 2.2% Streets and Sidewalks(+) $933,344.65 $824,239.97 $824,239.97 $109,104.68 $46,991.28 $62,113.40 6.7% Solid Waste(Trash)Collections(+) $1,141,708.92 $1,043,418.69 $1,043,418.69 $98,290.23 $95,678.05 $2,612.18 0.2% N Fleet Maintenance(+) $363,248.90 $349,223.68 $349,223.68 $14,025.22 $4,865.08 $9,160.14 2.5% Structures and Grounds(+) $525,974.34 $512,856.55 $512,856.55 $13,117.79 $10,073.39 $3,044.40 0.6% Snow and Ice(+) $1,332,871.35 $1,332,871.35 $1,332,871.35 $0.00 $0.00 $0.00 0.0% Sub-total:PUBLIC WORKS $4,695,060.96 $4,448,570.18 $4,448,570.18 $246,490.78 $160,898.02 $85,592.76 1.8% HEALTH AND HUMAN SERVICES Health(+) $202,311.28 $201,945.01 $201,945.01 $366.27 $0.00 $366.27 0.2% Elder Services(+} $252,473.85 $252,232.64 $252,232.64 $241.21 $0.00 $241.21 0.1% Youth Services(+) $306,934.03 $295,654.54 $295,654.54 $11,279.49 $1,768.03 $9,511.46 3.1% Veterans Services(+) $366,153.04 $331,588.35 $331,588.35 $34,564.69 $633.89 $33,930.80 9.3% Sub-total:HEALTH AND HUMAN $1,127,872.20 $1,081,420.54 $1,081,420.54 $46,451.66 $2,401.92 $44,049.74 3.9% SERVICES CULTURE AND RECREATION Library(+) $863,687.00 $860,413.68 $860,413.68 $3,273.32 $1,014.00 $2,259.32 0.3% Sub-total:CULTURE AND $863,687.00 $860,413.68 $860,413.68 $3,273.32 $1,014.00 $2,259.32 0.3% RECREATION SUPPORT SERVICES Purchasing(+) $49,807.38 $49,118.90 $49,118.90 $688.48 $0.00 $688.48 1.4% Auditing(+) $58,000.00 $57,580.00 $57,580.00 $420.00 $0.00 $420.00 0.7% Town of North Andover General Fund Expense Executive Summary - For the Period 07/01/2013 through 06/30/2014 Fiscal Year: 2013-2014 ❑ Include Pre Encumbrance Budget Range To Date Year To Date Balance Encumbrance Budget Balance Informaton Technology(+) $1,002,753.62 $930,251.63 $930,251.63 $72,501.99 $69,368.07 $3,133.92 0.3% Facilities(+) $236,732.50 $201,457.93 $201,457.93 $35,274.57 $34,761.74 $512.83 0.2% Sub-total:SUPPORT SERVICES $1,347,293.50 $1,238,408.46 $1,238,408.46 $108,885.04 $104,129.81 $4,755.23 0.4% DEBT SERVICE Included-Principal-LT(+) $3,931,889.69 $3,931,889.69 $3,931,889.69 $0.00 $0.00 $0.00 0.0% Included-Interest-LT(+) $579,627.19 $579,627.19 $579,627.19 $0.00 $0.00 $0.00 0.0% Included-Interest-ST(+) $1,977.25 $1,977.25 $1,977.25 $0.00 $0.00 $0.00 0.0% Excluded-Principal-LT(+) $1,434,856.00 $1,434,856.00 $1,434,856.00 $0.00 $0.00 $0.00 0.0% Excluded-Interest-LT(+) $376,114.56 $376,114.56 $376,114.56 $0.00 $0.00 $0.00 0.0% Sub-total: DEBT SERVICE $6,324,464.69 $6,324,464.69 $6,324,464.69 $0.00 $0.00 $0.00 0.0% EMPLOYEE BENEFITS I Retirement Assessment(+) $3,442,269.00 $3,442,269.00 $3,442,269.00 $0.00 $0.00 $0.00 0.0% iv Workers Compensation(+) $280,196.35 $271,426.17 $271,426.17 $8.770.18 $0.00 $8,770.18 3.1% ON Unemployment(+) $125,000.00 $100,210.55 $100,210.55 $24,789.45 $2,223.90 $22,565.55 18.1% I Group Insurance(+) $10,678,407.84 $10,547,403.32 $10,547,403.32 $131,004.52 $0.00 $131,004.52 1.2% Payroll Taxes-Medicare(+) $630,976.71 $630,976.71 $630,976.71 $0.00 $0.00 $0.00 0.0% Police and Fire Accident Ins(+) $81,772.17 $46,932.61 $46,932.61 $34,839.56 $0.00 $34,839.56 42.6% Sub-total: EMPLOYEE BENEFITS $15,238,622.07 $15,039,218.36 $15,039,218.36 $199,403.71 $2,223.90 $197,179.81 1.3% LIABILITY INSURANCE Liability Insurance(+) $301,404.51 $301,404.51 $301,404.51 $0.00 $0.00 $0.00 0.0% Sub-total:LIABILITY INSURANCE $301,404.51 $301,404.51 $301,404.51 $0.00 $0.00 $0.00 0.0% STATE CHARGES Special Education(+) $7,298.00 $11,769.00 $11,769.00 ($4,471.00) $0.00 ($4,471.00) -61.3% Mosquito Control(+) $91,385.00 $91,372.00 $91,372.00 $13.00 $0.00 $13.00 0.0% Retired Municipal Teachers(+) $661,130.00 $755,578.00 $755,578.00 ($94,448.00) $0.00 ($94,448.00) -14.3% Air Pollution Control(+) $9,251.00 $9,251.00 $9,251.00 $0.00 $0.00 $0.00 0.0% Regional Transit Authorities(+) $185,776.00 $185,776.00 $185,776.00 $0.00 $0.00 $0.00 0.0% RMV Non Renewal Surcharge(+) $17,280.00 $18,580.00 $18,580.00 ($1,300.00) $0.00 ($1,300.00) -7.5% School Choice Assessment(+) $14,068.00 $5,000.00 $5,000.00 $9,068.00 $0.00 $9,068.00 64.5% Town of North Andover General Fund Expense Executive Summary - For the Period 07/01/2013 through 06/30/2014 Fiscal Year: 2013-2014 ❑ Include Pre Encumbrance Budget Range To Date Year To Date Balance Encumbrance Budget Balance Charter School Assessment(+) $78,265.00 $140,003.00 $140,003.00 ($61,738.00) $0.00 ($61,738.00) -78.9% Essex County Agriculture Tech $37,659.00 $37,659.00 $37,659.00 $0.00 $0.00 $0.00 0.0% Assessment(+) Sub-total:STATE CHARGES $1,102,112.00 $1,254,988.00 $1,254,988.00 ($152,876.00) $0.00 ($152,876.00) 13.9% OTHER NON DEPARTMENTAL Regional School(+) $251,985.63 $240,750.00 $240,750.00 $11,235.63 $0.00 $11,235.63 4.5% Sub-total:OTHER NON $251,985.63 $240,750.00 $240,750.00 $11,235.63 $0.00 $11,235.63 4.5% DEPARTMENTAL Total:EXPENSES $83,050,362.58 $82,015,693.51 $82,015,693.51 $1,034,669.07 $366,486.49 $668,182.58 0.8% NET ADDITION DEFICIT $83,050,362.58 $82,015,693.51 $82,015,693.51 $1,034,669.07 $366,486.49 $668,182.58 0.8% I N V I Town of North Andover Sewer Enterprise Financial Report For the Period 07/01/2013 through 06/30/2014 Fiscal Year: 2013-2014 ❑ Include Pre Encumbrance Budget Range To Date Year To Date Balance Encumbrance Budget Balance REVENUES REVENUE Interest/Penalties(+) $22,000.00 $29,717.09 $29,717.09 ($7,717.09) $0.00 ($7,717.09) -35.1% User Charges(+) $4,338,587.00 $4,601,891.68 $4,601,891.68 ($263,304.68) $0.00 ($263,304.68) -6.1% Sewer Hookups(+) $65,000.00 $26,684.00 $26,684.00 $38,316.00 $0.00 $38,316.00 58.9% Other Fees(+) $300,000.00 $339,419.93 $339,419.93 ($39,419.93) $0.00 ($39,419.93) -13.1% Rental Income(+) $0.00 $240.00 $240.00 ($240.00) $0.00 ($240.00) 0.0% Interest Income(+) $4,000.00 $9,098.90 $9,098.90 ($5,098.90) $0.00 ($5,098.90) -127.5% Sub-total:REVENUE $4,729,587.00 $5,007,051.60 $5,007,051.60 ($277,464.60) $0.00 ($277,464.60) 5.9% Total : REVENUES $4,729,587.00 $5,007,051.60 $5,007,051.60 ($277,464.60) $0.00 ($277,464.60) 5.9% EXPENSES SALARIES N Salaries(-) $367,526.68 $367,526.68 $367,526.68 $0.00 $0.00 $0.00 0.0% 00 Sub-total:SALARIES ($367,526.68) ($367,526.68) ($367,526.68) $0.00 $0.00 $0.00 0.0% EXPENDITURES Expenses(-) $318,336.50 $178,826.09 $178,826.09 $139,510.41 $31,413.82 $108,096.59 34.0% Sewer Assessments(-) $1,638,198.82 $1,322,543.56 $1,322,543.56 $315,655.26 $0.00 $315,655.26 19.3% Sub-total:EXPENDITURES ($1,956,535.32) ($1,501,369.65) ($1,501,369.65) ($455,165.67) ($31,413.82) ($423,751.85) 21.7% DEBT SERVICE Long Term Principal(-) $1,248,005.00 $1,243,005.26 $1,243,005.26 $4,999.74 $0.00 $4,999.74 0.4% MWPAT Principal(-) $400,896.00 $400,895.53 $400,895.53 $0.47 $0.00 $0.47 0.0% Long Term Interest(-) $293,476.00 $289,430.73 $289,430.73 $4,045.27 $0.00 $4,045.27 1.4% MWPAT Interest(-) $49,623.00 $49,622.60 $49,622.60 $0.40 $0.00 $0.40 0.0% Sub-total:DEBT SERVICE ($1,992,000.00) ($1,982,954.12) ($1,982,954.12) ($9,045.88) $0.00 ($9,045.88) 0.5% INTERFUND TRANSFERS Transfer to General Fund-Indirect $413,525.00 $413,525.00 $413,525.00 $0.00 $0.00 $0.00 0.0% Cost(-) Sub-total:INTERFUND TRANSFERS ($413,525.00) ($413,525.00) ($413,525.00) $0.00 $0.00 $0.00 0.0% Town of North Andover Sewer Enterprise Financial Report For the Period 07/01/2013 through 06/30/2014 Fiscal Year: 2013-2014 ❑ Include Pre Encumbrance Budget Range To Date Year To Date Balance Encumbrance Budget Balance Total : EXPENSES ($4,729,587.00) ($4,265,375.45) ($4,265,375.45) ($464,211.55 a ($31,413.82) ($432,797.73) 9. /02 NET ADDITION DEFICIT $0.00 $741,676.15 $741,676.15 ($741,676.15) ($31,413.82) ($710,262.33) 0.0% I N I Town of North Andover Water Enterprise Financial Report For the Period 07/01/2013 through 06/30/2014 Fiscal Year: 2013-2014 ❑ Include Pre Encumbrance Budget Range To Date Year To Date Balance Encumbrance Budget Balance REVENUES REVENUE Interest/Penalties(+) $20,000.00 $23,849.36 $23,849.36 ($3,849.36) $0.00 ($3,849.36) -19.2% User Charges(+) $4,324,704.00 $4,547,027.41 $4,547,027.41 ($222,323.41) $0.00 ($222,323.41) -5.1% Water Hookups(+) $40,000.00 $41,250.00 $41,250.00 ($1,250.00) $0.00 ($1,250.00) -3.1% Other Fees(+) $500,000.00 $657,322.22 $657,322.22 ($157,322.22) $0.00 ($157,322.22) -31.5% Misc Departmental Revenue(+) $0.00 $6,686.59 $6,686.59 ($6,686.59) $0.00 ($6,686.59) 0.0% Interest Income(+) $7,000.00 $15,185.82 $15,185.82 ($8,185.82) $0.00 ($8,185.82) -116.9% Bond Premium(+) $0.00 $4,348.95 $4,348.95 ($4,348.95) $0.00 0 Sub-total:REVENUE $4,891,704.00 $5,295,670.35 $5,295,670.35 ($403,966.35) $0.00 ($403,966.35) 8.3% Total :REVENUES $4,891,704.00 $5,295,670.35 $5,295,670.35 0($403,966.35) $0.00 ($403,966.35) 8. /o 3 Uj EXPENSES O SALARIES Salaries(-) $870,802.61 $870,802.61 $870,802.61 $0.00 $0.00 $0.00 0.0% Sub-total:SALARIES ($870,802.61) ($870,802.61) ($870,802.61) $0.00 $0.00 $0.00 0.0% EXPENDITURES Expenses(-) $1,451,682.82 $1,003,920.47 $1,003,920.47 $447,762.35 $157,144.77 $290,617.58 20.0% Sub-total:EXPENDITURES ($1,451,682.82) ($1,003,920.47) ($1,003,920.47) ($447,762.35) ($157,144.77) ($290,617.58) 20.0% DEBT SERVICE Long Term Principal(-) $1,166,448.05 $1,166,448.05 $1,166,448.05 $0.00 $0.00 $0.00 0.0% Long Term Interest(-) $187,924.79 $187,924.79 $187,924.79 $0.00 $0.00 $0.00 0.0% MWPAT Principal(-) $251,505.00 $251,505.00 $251,505.00 $0.00 $0.00 $0.00 0.0% MWPAT Interest(-) $84,599.73 $84,599.73 $84,599.73 $0.00 $0.00 $0.00 0.0% Sub-total:DEBT SERVICE ($1,690,477.57) ($1,690,477.57) ($1,690,477.57) $0.00 $0.00 $0.00 0.0% INTERFUND TRANSFERS Transfer to General Fund-Indirest $878,741.00 $878,741.00 $878,741.00 $0.00 $0.00 $0.00 0.0% Cost(-) Sub-total: INTERFUND TRANSFERS ($878,741.00) ($878,741.00) ($878,741.00) $0.00 $0.00 $0.00 0.0% Operating Statement with Encumbrance Printed: 09/29/2014 10:03:12 AM Report: rptGLOperatingStatementwithEnc 3.2.13 Page: 1 Town of North Andover Water Enterprise Financial Report For the Period 07/01/2013 through 06/30/2014 Fiscal Year: 2013-2014 ❑ Include Pre Encumbrance Budget Range To Date Year To Date Balance Encumbrance Budget Balance Total:EXPENSES ($4,891,704.00) ($4,443,941.65) ($4,443,941.65) ($447,762.35) ($157,144.77 NET ADDITION DEFICIT $0.00 $851,728.70 $851,728.70 ($851,728.70) ($157,144.77) ($694,583.93) 0.0% I w I Town of North Andover Stevens Estate Financial Statement For the Period 07/01/2013 through 06/30/2014 Fiscal Year: 2013-2014 ❑ Include Pre Encumbrance Budget Range To Date Year To Date Balance Encumbrance Budget Balance REVENUES REVENUE Stevens Estate Receipts(+) $271,974.00 $337,053.81 $337,053.81 ° ($65,079.81) $0.00 ($65,079.81) -23. 109 Interest Income(+) $0.00 $480.14 $480.14 ° Misc Revenue + ($480.14) $0.00 ($480.14) 0. Jo 0 ( ) $0,00 $17.37 $17.37 ($17.37) $0.00 ($17.37) 0.0% Sub-total:REVENUE $271,974.00 $337,551.32 $337,551.32 ($65,577.32) $0.00 ($65,577.32) 24.1% Total:REVENUES $271,974.00 $337,551.32 $337,551.32 ($65,577.32) $0.00 ($65,577.32) 24.1 EXPENSES SALARIES Salaries(-) $96,125.00 $113,933.33 $113,933.33 ($17,808.33) $0.00 ($17,808.33) -18.5% Sub-total:SALARIES ($96,125.00) ($113,933.33) ($113,933.33) $17,808.33 $0.00 $17,808.33 18.5% EXPENDITURES w Expenses(-) $129,389.00 $143,387.30 $143,387.30 ($13,998.30) $650.72 ($14,649.02) -11.3% N Sub-total:EXPENDITURES � ($129,389.00) ($143,387.30) ($143,387.30) $13,998.30 ($650.72) $14,649.02 11.3% INTERFUND TRANSFERS Transfer to General Fund-Indirect $46,460.00 $46,460.00 $46,460.00 $0.00 $0.00 $0.00 0.0% Cost(-) Sub-total: INTERFUND TRANSFERS ($46,460.00) ($46,460.00) ($46,460.00) $0.00 $0.00 $0.00 0.0% Total:EXPENSES ($271,974.00) ($303,780.63) ($303,780.63) $31,806.63 ($650.72) $32,457.35 11.9% NET ADDITION DEFICIT $0.00 $33,770.69 $33,770.69 ($33,770.69) ($650.72) ($33,119.97) 0.0% TOWN OF NORTH ANDOVER MASSACHUSETTS �i° Y 1 ii yuiM� i yy fJ COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2014 t t vta v .N ���;D/�p�t f i�� t,4+� 8 f��Y r�r5h���!"�,',`� ';,,'� � w �L.,,b �„ "„.�WI�A'✓"��i'/f l ,, ,,-..:,� � 5 ���, �7�,���f�11 t � i/�i%r ll� r I,lfi/ '✓fit %JJr �,�itr ,,1� GN' U ¢,�✓ % �1��f0 tfl�. �1 ter k- 1' ���mtmuiW!]k+ '�'�r�iii �W IA C'I ,n, rlr r+NtY44r fir,//%wtr,Jn"'viau Ncnth Andover Central Fur Statim Board of Selectmen Town Manager 1 ��� Ili qi� illui4ii ' riaiir /////G%/.id�II�iVgV l�li11V)iIVNNNIIII l lu k V irrr�� iP j i "III I A, f^ 1 t � Front row:Rosemary C.Smedile,Andrew Maylor('town Mgr),Tracy M.Watson Back row:Richard M.Vaillancourt,William F.Gordon,Donald B.Stewart TOWN OF NORTH ANDOVER, MASSACHUSETTS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2014 „ i; oio✓i,,; %ii//l%///i�' �� Prepared by: Lyne M. Savage, Finance Director/Town Accountant TOWN OF NORTH ANDOVER, MASSACHUSETTS COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2014 TABLE OF CONTENTS IntroductorySection.........................................................................................................................................................1 Letterof transmittal ......................................................................................................................................................3 Organizationalchart.....................................................................................................................................................8 Principaltown officials..................................................................................................................................................9 Certificate of achievement for excellence in financial reporting.................................................................................10 FinancialSection ...........................................................................................................................................................11 Independent auditor's report......................................................................................................................................13 Management's discussion and analysis ....................................................................................................................15 Basic financial statements .........................................................................................................................................24 Statementof net position........................................................................................................................................25 Statementof activities............................................................................................................................................26 Governmental funds— balance sheet ....................................................................................................................28 Reconciliation of the governmental funds balance sheet total fund balances to the statement of net position.....29 Governmental funds—statement of revenues, expenditures and changes in fund balances ...............................30 Reconciliation of the statement of revenues, expenditures, and changes in fund balances of governmental funds to the statement of activities.........................................................................................................................31 Proprietary funds—statement of net position.........................................................................................................32 Proprietary funds—statement of revenues, expenses and changes in net position..............................................33 Proprietary funds—statement of cash flows..........................................................................................................34 Fiduciary funds—statement of fiduciary net position.............................................................................................35 Fiduciary funds—statement of changes in fiduciary net position...........................................................................36 Notes to basic financial statements........................................................................................................................37 Required supplementary information.........................................................................................................................63 Retirement system schedules................................................................................................................................66 Retirement system schedule of funding progress..............................................................................................67 Retirement system schedule of employer contributions.....................................................................................68 Other postemployment benefit plan schedules......................................................................................................69 Other postemployment benefit plan schedule of funding progress and schedule of employer contributions....70 Other postemployment benefit plan actuarial methods and assumptions..........................................................71 Notes to required supplementary information ........................................................................................................72 Combining and individual fund statements................................................................................................................75 Nonmajor governmental funds...............................................................................................................................76 Nonmajor governmental funds—combining balance sheet...............................................................................78 Nonmajor governmental funds—combining statement of revenues, expenditures, and changes in fund balances .............................................................................................................................................................82 Agencyfund ...........................................................................................................................................................85 Agency fund—statement of changes in assets and liabilities............................................................................86 StatisticalSection ..........................................................................................................................................................87 Net position by component—last ten years...............................................................................................................88 Changes in net position — last ten years....................................................................................................................89 Fund balances, governmental funds—last ten years................................................................................................91 Changes in fund balances, governmental funds— last ten years..............................................................................92 Assessed value and actual value of taxable property by classification and tax rates—last ten years......................93 Principal taxpayers—current year and nine years ago .............................................................................................94 Property tax levies and collections—last ten years...................................................................................................95 Ratios of outstanding debt and general bonded debt—last ten years ......................................................................96 Direct and overlapping governmental activities debt—as of June 30, 2014. ............................................................97 Computation of legal debt margin — last ten years ....................................................................................................98 Demographic and economic statistics— last ten years..............................................................................................99 Principal employers (excluding Town)—current year and nine years ago..............................................................100 Full-time equivalent Town employees— last ten years............................................................................................101 Operating indicators by function/program— last ten years......................................................................................102 Capital asset statistics by function/program— last ten years...................................................................................104 AdditionalInformation..................................................................................................................................................105 Enterprise funds—schedule of revenues, expenses and changes in net position — budgetary basis— budgetand actual ....................................................................................................................................................106 Introductory Section r North Andover Lake Cochichewick Introductory Section Town of North Andover, Massachusetts 1 Comprehensive Annual Financial Report This page intentionally left blank. Town of North Andover, Massachusetts 2 Comprehensive Annual Financial Report Town of North Andover 120 Main Street North Andover, Massachusetts 01845 (978) 688-9523 FAX (978) 688-9522 Letter of Transmittal December 1, 2014 To Members of the Board of Selectmen and Citizens of the Town of North Andover: At the close of each fiscal year, state law requires the Town of North Andover to publish a complete set of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP), and that are audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the Comprehensive Annual Financial Report (CAFR)of the Town of North Andover, Massachusetts, for the fiscal year ending 2014 for your review. This report consists of management's representations concerning the finances of the Town of North Andover. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the Town of North Andover has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Town of North Andover's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the Town of North Andover's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements for the fiscal year ended June 30, 2014, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The Town of North Andover's financial statements have been audited by Powers &Sullivan, LLC, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Town of North Andover for the fiscal year ended June 30, 2014 are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the Town of North Andover's financial statements for the fiscal year ended June 30, 2014, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the Town of North Andover was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal Town of North Andover, Massachusetts 3 Comprehensive Annual Financial Report requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the Town of North Andover's separately issued Single Audit Report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement that analysis and should be read in conjunction with it. The Town of North Andover's MD&A can be found immediately following the report of the independent auditors. Profile of the Town The Town of North Andover is located in Essex County, approximately 24 miles north of Boston. The Town is 26.63 square miles and lies along the banks of the Merrimack River and is surrounded by the Towns of Boxford, Andover, Middleton, North Reading, and the Cities of Lawrence, Methuen and Haverhill. The settlement of the Town began in 1640 and was incorporated as Andover in 1646. The community was split into the North Parish (now North Andover) and South Parish (now Andover) in 1709 and North Andover was incorporated as a separate entity in 1855. North Andover is governed by an open Town Meeting form of government, a five-member Board of Selectmen and a Town Manager pursuant to a Home Rule Charter that went into effect in 1986. Although North Andover contains several Commercial Office Parks, the Town has retained a rural character and contains over 3,000 acres of preserved open space and farmland. North Andover is served by the following interstates: Route 495, Route 125, Route 133 and Route 114. North Andover is a thriving community with an excellent school system, efficient services and a strong commitment to its citizens. As of the 2010 U.S Census the Town's population is 28,382. The Town provides general governmental services for its citizens, including police and fire protection, collection and disposal of refuse, public education for pre-kindergarten through grade twelve, water and sewer services, parks and recreation, health and social services, libraries/culture as well as maintenance of streets and other infrastructures. The Town is governed by a home rule charter that provides for an Open Town Meeting - Board of Selectmen - Town Manager form of town government; with Town Meeting defined as the Legislative body, Board of Selectmen as the Executive body and the Manager as the chief administrative officer. In accordance with Chapter 2 "the legislative powers of the town shall be exercised by a town meeting open to all registered voters of the town". As defined in Chapter 3 "the Board of Selectmen shall serve as the chief goal-setting and policy-making agency of the town and, as such, shall not normally administer the day-to-day affairs of the town, but shall instead regularly direct the Town Manager to help it in carrying out its administrative duties, and make recommendations to the town meeting relating to actions required to be taken by that body." As defined in Chapter 4 "the Town Manager shall be the chief administrative officer of the town and shall be responsible for administering and coordinating all employees, activities and departments placed by general law, this charter or by-law under the control of the Board of Selectmen and of the Town Manager." The School Committee has general charge and superintendence of the public schools of the Town. The School Committee is comprised of five members elected at large. The School Committee has the power to select and terminate a superintendent of schools, establish educational goals and policies for the schools consistent with the requirements of the laws of the commonwealth and standards established by the Commonwealth. The School Committee also has all the power and duties given to school committees by the laws of the Commonwealth. In addition to being shaped and influenced by the Town's elected officials and appointed staff, Town policy and programs are impacted by the actions of the Town's Boards and Commissions. The size, responsibility and source of authority of the Town's Boards and Commissions vary. With the exception of those members who derive their appointments as a result of their position in Town government and the Town Charter mandating their Town of North Andover, Massachusetts 4 Comprehensive Annual Financial Report membership, the Board of Selectmen and Town Manager appoint members in accordance with the Town Charter or Massachusetts General Law. The Town provides a full array of high quality services to the general public, including: full-time police and fire protection; schools for grades pre- kindergarten through 12, (one pre-kindergarten, five elementary, one middle, one senior high, and one regional vocational technical high school); solid waste disposal and recycling; street maintenance and snow removal; public health and natural resource protection; community development and planning; elder, youth and veteran services; a full service library; and various parks, playgrounds, conservation lands, and recreational programs. The Town also operates its own water supply, purification, and distribution system, and provides sanitary waste disposal via connections to a regional treatment facility(Greater Lawrence Sanitary District). During the summer months the Town operates Steven's Pond, a family and youth oriented recreation area located off Pleasant Street, which includes recreational and instructional swimming, shaded picnic tables, volleyball, horseshoe pits and a children's playground. The Merrimack Valley Transit Authority ("MVTA") provides bus coverage for certain routs around the Town with connections to the surrounding communities with the Merrimack Valley area. The Town of North Andover is committed to a high degree of community responsiveness, providing high quality services to its citizens, and conducting all its affairs in a professional manner. Factors Affecting Economic Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the Town of North Andover operates. Local economy North Andover is a well-balanced mix of commercial development situated in three distinct areas throughout Town. Downtown North Andover serves the local community with small retail and office space as well as providing a mix of fast food and full service restaurants. The downtown is also home to a large mix-use mill complex that houses larger companies, rental housing, manufacturing, restaurants and offices. North Andover is bisected by two state highways that connect to an interstate highway. These two corridors, which comprise the other commercial districts, boast three industrial parks that serve larger national and international businesses. The state highways also provide a mix of regional commercial and retail businesses that serve residents and neighboring communities. Located at the intersection of the two state highways, on a 220- acre campus, is the Merrimack College with over 2,800 students. The college was recently ranked as one of the nation's best liberal arts colleges. Long-term financial planning The Town of North Andover has a proud history of maintaining a solid financial position in all economies, as indicated by its "AA+" bond rating. The Town's financial actions are generally guided by a number of formal financial policies including long range planning tools such as a five year Capital Improvement Program, prioritizing spending plans and identifying discretionary spending, pay-as-you go financing strategies, long-term planning for all liabilities including pension and insurance reserves, and municipal best practices, which are reviewed annually at the beginning of each budget development cycle. Given a number of years of reduced state aid in the first decade of this century, followed by only modest growth since that time, the Town has been able to minimize the impact to municipal and school services through a combination of prudent budgeting, user fee adjustments, strong tax collections, modification of employee health benefits and continued property growth. Over the last few years the Town has been able to make transfers into Town of North Andover, Massachusetts 5 Comprehensive Annual Financial Report their reserve funds from Free Cash. As of June 2014, the Stabilization Fund undesignated fund balance is $3,555,225 and the Capital Stabilization Fund balance is $452,417. The Town is currently managing approximately$51.1 million worth of long debt. This indebtedness consists of approximately$32.1 million of general obligation bonds. Approximately$7.8 million or 15% of the $51.1 million is scheduled to be paid by the end of fiscal 2015 and the remaining $43.3 million by fiscal 2034. Approximately $19.0 million is self-supporting through enterprise fund revenues. The Town of North Andover has enhanced its revenue flexibility by establishing enterprise funds and many other user supported programs. This has allowed the Town to shift the operating costs to the users of certain services so that little or no tax support goes towards providing these services. By doing so, the Town is able to provide the maximum tax dollars available to all other services. The Town has several committees which assist the Town Manager on different levels. In May 2004 Town Meeting adopted the Revenue/Fixed Cost Committee whose main purpose is to advise the Town Manager and other Town officials on projected revenues, other financial sources and fixed cost to facilities the annual budget development process. And the Audit Committee assists the Town Manager with the selection of the independent auditor, oversight of the audit process, and resolution of audit findings. Cash management policies and practices It is the policy of the Town of North Andover to comply with the laws of the Commonwealth of Massachusetts regarding the investment of public funds while achieving the highest return with the maximum security and meeting the daily cash flow demands of the Town. As of June 30, 2014, cash and cash equivalents totaled $48 million. Risk management The Town of North Andover manages its risk through premium based coverage with commercial insurance carriers. With the move from the Towns self-insured health plan to the GIC the Town has further reduced their risk related to health insurance claims. The Town is exposed to various risks of loss related to general liability, property and casualty, workers' compensation and unemployment compensation claims. Buildings and property are fully insured against fire, theft and natural disaster to the extent that losses exceed the Town's deductible per incident. These deductibles vary by type of incident, none of which exceed $25,000. Pension and other post-employment benefits The Town of North Andover contributes to the Essex Regional Retirement System. The System recently reported that the total unfunded liability for the pension plan increased by$46.9 million from $257.8 million to $304.7 million, using an estimated 8% annual return on funds, or has earned more than 18%from January 1, 2010 to December 31, 2013. North Andover's share of this liability is determined annually based on payroll cost but has generally been approximately 14.73%which would extrapolate to an unfunded liability of$45 million. The Town of North Andover also provides postretirement health care benefits for certain retirees and their dependents. There were 380 retired employees receiving these benefits, which are financed on a pay-as-you-go basis for its unfunded liability. For Fiscal 2014, the Town conducted an actuarial valuation dated 7/1/13 to determine the unfunded liability of$86,605,373 which is down $13,463,471 from the previous actuarial dated 7/1/12. The primary reason for the decrease was a negotiated change (increase) in the percentage contribution of health insurance premiums by town employees. The Town migrated all employees and retirees to the Group Insurance Commission (GIC) health insurance plans in January 2014 and the effect of that change on the OPEB Town of North Andover, Massachusetts 6 Comprehensive Annual Financial Report liability is not yet known. The Town established an Other Postemployment Benefit Stabilization fund in 2014, to date it has been funded with $1 million. The Town will continue to contribute to this fund based on the policy that was adopted February10, 2014. Additional information on the Town of North Andover's pension and postemployment benefits can be found in the notes to the financial statements. Annual budget process and controls The Town Manager is responsible for preparing and presenting the budget to the Finance Committee and the Board of Selectmen. The Selectmen review all requests and Town wide issues and present a budget to Town Meeting for approval. A nine member Finance Committee reviews the budget and makes its independent recommendations to Town Meeting. The level of budgetary control is established by Town Meeting and this approval defines the level at which expenditures may not exceed appropriations. The Town Accountant is responsible for ensuring all payroll and invoices are within the budgetary control level before authorizing payment. Additional appropriations may be approved at subsequent Town Meetings. These controls ensure compliance with the budget approved by Town Meeting. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA)awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town for its CAFR for the fiscal year ended June 30, 2013. This was the second consecutive year that the Town has achieved this prestigious award. In order to be awarded a Certificate of Achievement, the Town had to publish an easily readable and efficiently organized CAFR that satisfied both generally accepted accounting principles and applicable program requirements. A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. However, we believe that our current CAFR continues to meet the Certificate of Achievement for Excellence in Financial Reporting Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The Town also received the GFOA's Distinguished Budget Presentation Award for its annual budget document for the fiscal year ended June 30, 2013. This was the second consecutive year that the Town has achieved this prestigious award. To qualify for the Distinguished Budget Presentation Award, the Town's budget document had to be judged proficient as a policy document, a financial plan, an operations guide, and a communications device. North Andover's Police Department is a Massachusetts Accredited Police Department and has been so since May 2010. The preparation of this report would not have been possible without the skill, effort and dedication of the staff of the Finance and Accounting departments. We would like to express our appreciation to all of the members of the departments who assisted in providing the data necessary to prepare this report. Credit also is due to the Town Selectmen, Finance Committee and Audit Committee for their unfailing support for maintaining the highest standards of professionalism in the management of the Town of North Andover's finances. Respectfully submitted, Andrew W. Maylor Lyne M. Savage Town Manager Finance Director/Town Accountant Town of North Andover, Massachusetts 7 Comprehensive Annual Financial Report Organizational Chart i Citizens of North Andover i Town Meeting Finance Committee,.. Board of Selectmen School Cormittee i Ta rnCc�{nsel, Tx�wn It craget Schrrnl superintendent l AsslstantTaxmManager(Purchasing 7 ( Community Services Community Finance Public Works Administration € ,Fire iri,..,ri,�. Emergency Management Development [ } man Resources Finance Director DPW Director' i9Q I3tvrgon head € Ch(ef Director r3irector �. LI�Yef � tt>=fdBet .. Streacs{5i€ievrall�= Clerk/Licensing Gnmmunicaticsns 7' _ Elder Services Punning Treas/Cc?It I Sdeitens Library Elect Maintenance t 5---- anservatifln i Assessing Snlld Veterans services Health I'•� ��_ — i Inspectional Human Resources 5dfster/sewer Stevens Estate .Engineering/CIS i 'Youth(Reccreation Town of North Andover, Massachusetts 8 Comprehensive Annual Financial Report Principal Town Officials Elected Officials Board of Selectmen Richard M Vaillancourt, Chairman William F. Gordon, Clerk Rosemary Connelly Smedile Donald B. Stewart Tracy M. Watson, Licensing Chairman Town Moderator Mark DiSalvo School Committee Andrew McDevitt, Chair Brian Gross, Vice Chair Stan Limpert, Clerk David Torrisi, Member Zora Warren, Member Appointed Officials— by School Committee Superintendent Kevin Hutchinson Appointed Officials— by Board of Selectmen Town Manager Andrew W. Maylor Town Accountant Lyne M Savage Fire Chief Andrew Melnikas Police Chief Paul J. Gallagher Town Counsel Urbelis & Fieldsteel, LLP Appointed Officials— by Town Manager Assistant Town Manager/Purchasing Raymond Santilli Community Development Director Curt T. Bellavance Conservation Administrator Jennifer A Hughes Director of Elder Services Irene M. O'Brien Finance Director Lyne M Savage Human Resources Cathy J. Darby Inspector of Building Gerald A. Brown Library Director Vacant Public Works Director Bruce D. Thibodeau Public Health Director Susan Y. Sawyer Town Clerk Joyce A. Bradshaw Town Treasurer Jennifer A. Yarid Town Planner Mathew Eggi Veterans Director Edward V. Mitchell Youth Services Director Richard Gorman Town of North Andover, Massachusetts 9 Comprehensive Annual Financial Report i Government Finance Officers Association, Certificate of Achievement for Excellence, in F i 0, 0, Reporting irtd t Town of North Andover Massachusetts For its Comprehensive Annual Financial Repo for the Fiscal,, Year Ended, 3 *4�w 40-PA*00 Executive Director/CEO Town of North Andover, Massachusetts 10 Comprehensive Annual Financial Report Financial Section I� � F i f u I I g F l r � r w � » r � y4„ a 4 l U N �I Former Davis and Furber West Mill Photo courtesy of Millie Matasso Financial Section Town of North Andover, Massachusetts 11 Comprehensive Annual Financial Report This page intentionally left blank. Town of North Andover, Massachusetts 12 Comprehensive Annual Financial Report Powers & Sullivan, L.U. � 1, Certified Public Accountants Independent Auditor's Report Suite 101 To the Honorable Board of Selectmen tiVaktJicl 1 S1A OINNr1 T. 781-911-1700 Town of North Andover, Massachusetts F. 781-914-17411 �w�w w.�aa>w�r�a n til tiau ll ll i Grua,cra>rm Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of North Andover, Massachusetts, as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the Town's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of North Andover, Massachusetts, as of June 30, 2014, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Town of North Andover, Massachusetts 13 Comprehensive Annual Financial Report Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of North Andover, Massachusetts' basic financial statements. The introductory section, combining and individual fund statements, statistical section, and additional information are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section, statistical section and additional information have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 1, 2014, on our consideration of the Town of North Andover, Massachusetts' internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town of North Andover, Massachusetts' internal control over financial reporting and compliance. December 1, 2014 Town of North Andover, Massachusetts 14 Comprehensive Annual Financial Report Management's Discussion and Analysis Town of North Andover, Massachusetts 15 Comprehensive Annual Financial Report Management's Discussion and Analysis As management of the Town of North Andover, we offer readers of these financial statements this narrative overview and analysis of the financial activities for the year ended June 30, 2014. We encourage readers to consider the information presented in this report. All amounts, unless otherwise indicated, are expressed in whole dollars. The Governmental Accounting Standards Board (GASB) is the authoritative standard setting body that provides guidance on how to prepare financial statements in conformity with generally accepted accounting principles (GAAP)for states and local governmental entities. Users of these financial statements (such as investors, rating agencies and management) rely on the GASB to establish consistent reporting standards for all governments in the United States. This consistent application is the only way users (including citizens, the media, legislators and others)can assess the financial condition of one government compared to others. Financial Overview • Governmental net position increased by$156,000 in 2014. This increase was due to several positive factors that are more fully described on page 20. The positive factors were offset by a $5.6 million increase in the other postemployment benefits (OPEB) liability bringing the total liability to $42.3 million at year-end. • At the close of the current year, the Town's general fund reported a fund balance of$10.1 million, an increase of$2.4 in comparison with the prior year. Total fund balance represents 11%of general fund expenditures. • The Town's governmental debt (short-term and long-term combined) increased by$3.3 million during the current year. This change was due to the issuance of$13.2 million of short and long-term debt, offset by $9.5 million in principal payments on long-term debt. • The Town's business—type activities increased by$3.0 million during the current year. $1.3 million of this increase was due to the water and sewer rates being designed to cover principal payments on long-term debt and not being designed to cover depreciation expense. • In order to take advantage of favorable interest rates, the Town issued $4,210,000 of general obligation refunding bonds on July 9, 2013. The transaction resulted in an economic gain of$424,435 and a reduction of$489,914 in future debt service payments. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the Town of North Andover's basic financial statements. These basic financial statements comprise of three components: 1)government-wide financial statements, 2)fund financial statements, and 3) notes to the financial statements. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of finances, in a manner similar to private-sector business. The statement of net position presents information on all assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position is improving or deteriorating. Town of North Andover, Massachusetts 16 Comprehensive Annual Financial Report The statement of activities presents information showing how the government's net position changed during the most recent year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities include general government, public safety, education, public works, health and human services, culture and recreation, support services, and interest. The business-type activities include the activities of the water, sewer, and Osgood Hill Estate operations. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Fund accounting is used to ensure and demonstrate compliance with finance-related legal requirements. All of the funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the governmental-wide financial statements. However, unlike the government-wide financial statements, governmental fund statements focus on near-term inflows of spendable resources, as well as on balances of spendable resources available at the end of the year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town of North Andover adopts an annual appropriated budget for its general fund. A budget to actual schedule has been provided for the general fund to demonstrate compliance with this budget. Proprietary funds. The Town maintains two types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government- wide financial statements. The Town uses enterprise funds to account for its water, sewer, and Osgood Hill Estate operations, all of which are considered to be major funds. The Town of North Andover adopts annual appropriated budgets for each enterprise fund. A budget to actual schedule has been provided, as additional information, to demonstrate compliance with these budgets. The Internal Service fund is used to account for the financing of services provided by one department to other departments or governmental units. This fund is used to account for risk-financing activities related to active employees' and retirees' health insurance. Town of North Andover, Massachusetts 17 Comprehensive Annual Financial Report Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the Town's own programs. The accounting used for fiduciary funds is much like that used for propriety funds. Private-purpose trust funds and agency funds are reported and combined into a single, aggregate presentation in the fiduciary fund financial statements under the captions "private purpose trust funds" and "agency funds," respectively. Notes to the basic financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. North Andover's assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $142.2 million at the close of 2014. Net position includes $148.1 million as the net investment in capital assets (e.g., land, buildings and building improvements, machinery and equipment and infrastructure); less any related debt used to acquire those assets that are still outstanding. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the investment in its capital assets is reported net of its related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the net position, $9.4 million, represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position has a year-end deficit balance of $15.3 million. The primary reason for this deficit balance is the recognition of the $44.1 million OPEB liability. At the end of the current year, the Town is able to report positive balances in two of the three categories of net position, for the Town as a whole and for its governmental activities. Its business-type activities report positive balances in all categories. The governmental activity and business-type activity components of the Town are presented on the following pages. Town of North Andover, Massachusetts 18 Comprehensive Annual Financial Report Governmental Activities. The Town of North Andover's assets and deferred outflows of resources exceeded liabilities for governmental activities by$94.7 million at the close of 2014. 2014 2013 Assets: Current assets........................................................... $ 44,473,557 $ 34,261,926 Noncurrent assets(excluding capital)............................. - 399,232 Capital assets............................................................ 134,996,739 134,528,958 Total assets......................................................... 179,470,296 169,190,116 Deferred Outflows of Resources: Deferred charges on refunding...................................... 230,563 347,266 Liabilities: Current liabilities(excluding debt)................................... 8,852,949 7,750,897 Noncurrent liabilities(excluding debt).............................. 42,994,897 37,408,389 Current debt.............................................................. 5,294,425 5,726,246 Noncurrent debt......................................................... 27,872,574 24,122,058 Total liabilities...................................................... 85,014,845 75,007,590 Net Position: Net investment in capital assets..................................... 106,117,880 106,453,985 Restricted................................................................. 9,444,583 8,207,148 Unrestricted............................................................... (20,876,449) (20,131,341) Total net position.................................................. $ 94,686,014 $ 94,529,792 Program Revenues: Charges for services................................................... $ 7,010,301 $ 6,974,866 Operating grants and contributions................................. 18,994,028 18,592,278 Capital grants and contributions..................................... 1,807,772 2,556,861 General Revenues: Real estate and personal property taxes.......................... 62,195,623 60,284,114 Tax liens................................................................... 570,085 401,204 Motor vehicle and other excise taxes.............................. 4,673,160 4,462,710 Penalties and interest on taxes...................................... 501,903 316,019 Payments in lieu of taxes............................................. 2,008,020 1,974,424 Community preservation taxes....................................... 1,433,013 1,390,831 Grants and contributions not restricted to specific programs................................................... 2,279,506 2,338,662 Unrestricted investment income..................................... 241,618 198,915 Total revenues...................................................... 101,715,029 99,490,884 Expenses: General government................................................... 3,685,321 3,665,170 Public safety.............................................................. 15,242,286 15,017,342 Education.................................................................. 70,591,546 70,340,318 Public works.............................................................. 6,719,915 6,963,935 Health and human services.......................................... 2,228,573 2,162,118 Culture and recreation............................................. 1,453,223 1,679,351 Support services........................................................ 1,444,333 1,281,204 Interest..................................................................... 1,025,900 1,192,955 Total expenses..................................................... 102,391,097 102,302,393 Excess(deficiency)before transfers............................... (676,068) (2,811,509) Transfers..................................................................... 832,290 1,098,126 Change in net position.............................................. 156,222 (1,713,383) Net position,beginning of year....................................... 94,529,792 96,243,175 Net position,end of year................................................ $ 94,686,014 $ 94,529,792 Town of North Andover, Massachusetts 19 Comprehensive Annual Financial Report The governmental expenses totaled $102.4 million of which $27.8 million (27%)was directly supported by program revenues consisting of charges for services, operating and capital grants and contributions. General revenues totaled $73.9 million, primarily coming from property taxes, motor vehicle excise, payments in lieu of taxes and non-restricted state aid. The governmental net position increased by$156,000 during the current year. This was due to positive general fund budgetary results totaling $3.0 million, the recognition of$1.8 million in capital grants, and a $1.4 million increase in the internal service fund. These increases were offset by a $5.6 million increase in the other postemployment benefits liability. Business-type Activities. The Town of North Andover's assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources for business-type activities by$47.5 million at the close of 2014. 2014 2013 Assets: Current assets............................................................. $ 11,074,453 $ 12,358,806 Noncurrent assets(excluding capital)............................... 577,484 678,103 Capital assets.............................................................. 56,976,623 56,499,301 Total assets........................................................... 68,628,560 69,536,210 Deferred Outflows of Resources: Deferred charges on refunding........................................ 141,043 186,248 Liabilities: Current liabilities(excluding debt).................................... 361,174 427,249 Noncurrent liabilities(excluding debt)................................ 1,852,818 1,691,859 Current debt................................................................ 3,240,133 3,411,542 Noncurrent debt........................................................... 15,770,161 19,674,451 Total liabilities........................................................ 21,224,286 25,205,101 Net Position: Net investment in capital assets....................................... 42,012,200 40,243,610 Unrestricted................................................................. 5,533,117 4,273,747 Total net position.................................................... $ 47,545,317 $ 44,517,357 Program Revenues: Charges for services..................................................... $ 10,520,803 $ 10,688,268 Operating grants and contributions................................... 122,529 127,545 Total revenues....................................................... 10,643,332 10,815,813 Expenses: Water......................................................................... 3,200,373 3,033,371 Sewer........................................................................ 3,238,708 3,517,562 Osgood Hill ................................................................ 344,001 332,189 Total expenses....................................................... 6,783,082 6,883,122 Excess(deficiency)before transfers................................. 3,860,250 3,932,691 Transfers....................................................................... (832,290) (1,098,126) Change in net position................................................ 3,027,960 2,834,565 Net position,beginning of year......................................... 44,517,357 41,682,792 Net position,end of year.................................................. $ 47,545,317 $ 44,517,357 Business-type net position of$42.0 million represents the net investment in capital assets and $5.5 million is unrestricted. The Town's business-type activities net position increased by$3.0 million in the current year. Town of North Andover, Massachusetts 20 Comprehensive Annual Financial Report The water enterprise fund net position increased by$1.2 million. This increase was due to debt service principal payments exceeding depreciation expense by$554,000, and also $766,000 of positive budgetary results. The sewer enterprise fund net position increased by$1.4 million. This increase was due to debt service principal payments exceeding depreciation expense by$795,000 and also $741,000 of positive budgetary results. The Osgood Hill enterprise fund net position increased by$454,000 which was due to additional capital contributions of$506,000 from the community preservation fund. Financial Analysis of the Governmental Funds As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the Town of North Andover's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town of North Andover's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the year. As of the end of the current year, governmental funds reported combined ending fund balances of$24.2 million, of which $10.1 million is for the general fund, $6.8 million is for the community preservation fund, $3.4 million is for municipal capital project funds, and $3.8 million is for nonmajor governmental funds. Cumulatively there was an increase of$6.9 million in fund balances from the prior year. The general fund is the chief operating fund. At the end of the current year, unassigned fund balance of the general fund totaled $9.0 million, while total fund balance was $10.1 million. $762,000 of fund balance was restricted for debt service. Fund balance has been assigned for encumbrances in the amount of$366,000. Total fund balance represents 11%of general fund expenditures. The Town's general fund increased by$2.4 million in 2014 which was due to $2.0 million of better than anticipated revenue collections, such as tax liens, motor vehicle and other excise taxes, penalties and interest on taxes, intergovernmental revenues, and departmental receipts. Also contributing to the increase were various underspent appropriations totaling $686,000 that included general government, public safety, public works and employee benefits. The community preservation fund increased by$1.2 in 2014, which is due to timing differences between the receipt and expenditure of surcharge and state grant revenues. The highway chapter 90 fund recognized revenues and expenditures totaling $587,000 and accordingly did not reflect a net change in fund balance at year-end. The municipal capital project fund increased by$3.1 million in 2014, which is due to timing differences between the receipt and expenditure of bond proceeds. The nonmajor governmental funds increased by$268,000 in 2014, which is due to timing differences between the receipt and expenditure of bond proceeds and grants. General Fund Budgetary Highlights The original 2014 approved budget for the General Fund authorized $83.2 million in appropriations and other amounts to be raised. This includes $174,000 of encumbrances and continuing appropriations carried forward from the prior year. Town of North Andover, Massachusetts 21 Comprehensive Annual Financial Report Capital Asset and Debt Administration Capital Assets. In conjunction with the annual operating budget, the Town annually prepares a capital budget for the upcoming year and a five-year Capital Improvement Plan (CIP)that is used as a guide for future capital expenditures The Town's investment in capital assets for its governmental and business-type activities as of June 30, 2014, amounts to $192.0 million (net of accumulated depreciation). This investment in capital assets includes land, construction in progress, land improvements, buildings and building improvements, machinery and equipment, library books, vehicles, a water treatment plant, pump stations, a reservoir, and other infrastructure. The Town invested $8.7 million for capital asset additions in 2014. The major governmental capital asset events during the current year include various improvements to school and town buildings associated with the facilities mater plan, an energy efficiency project, construction of playing fields, a new front-end loader, as well as various sidewalk and roadway improvements. The major business-type capital asset events during the current year consisted of a new HVAC system, meter replacements, roofing, windows and other improvements at the Stevens Estate, as well as various water and sewer main improvements. Debt Administration. Outstanding gross long-term governmental debt, as of June 30, 2014, totaled $32.5 million, an increase of$3.0 million from the prior year. This was due to the issuance of general obligation bonds and premiums from the issuance of the bonds totaling $12.5 million, and principal payments totaling $9.5 million. Outstanding governmental short-term debt totaled $660,000 at year-end and is due on June 18, 2015. Outstanding gross long-term debt of the water enterprise fund, as of June 30, 2014, totaled $9.3 million, a decrease of$1.2 million from the prior year. This was due to the issuance of$386,000 of general obligation bonds and principal payments totaling $1.5 million. Outstanding gross long-term debt of the sewer enterprise fund, as of June 30, 2014, totaled $9.7 million, a decrease of$2.9 million. This was due to the issuance of$81,000 of general obligation refunding bonds and principal payments totaling $3.0 million. In order to take advantage of favorable interest rates, the Town issued $4,210,000 of general obligation refunding bonds on July 9, 2013. The proceeds of the refunding bonds were used to complete a current refunding of existing debt. The refunded bonds totaled $4,370,000 and became callable on July 15, 2013. As a result of the transaction, the refunded bonds were paid down on the call date and the liability has been removed from the statement of net position. The transaction resulted in an economic gain of$424,435 and a reduction of$489,914 in future debt service payments. Please refer to notes 4, 7 and 8 to the basic financial statements for further discussion of the major capital and debt activity. Requests for Information This financial report is designed to provide a general overview of the Town of North Andover's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, Town Hall, 120 Main Street, North Andover, Massachusetts 01845. Town of North Andover, Massachusetts 22 Comprehensive Annual Financial Report This page intentionally left blank. Town of North Andover, Massachusetts 23 Comprehensive Annual Financial Report Basic Financial Statements Town of North Andover, Massachusetts 24 Comprehensive Annual Financial Report STATEMENT OF NET POSITION J U N E 30,2014 Primary Government Governmental Business-type Activities Activities Total ASSETS CURRENT: Cash and cash equivalents.................................. $ 35,690,312 $ 8,058,863 $ 43,749,175 Investments...................................................... 378,867 - 378,867 Receivables,net of allowance for uncollectibles: Real estate and personal property taxes............. 1,083,256 - 1,083,256 Tax and utility liens......................................... 1,968,114 108,253 2,076,367 Motor vehicle and other excise taxes................. 278,464 - 278,464 User charges................................................ - 2,806,718 2,806,718 Community preservation................................. 22,580 - 22,580 Departmental and other.................................. 566,756 - 566,756 Intergovernmental.......................................... 3,268,923 100,619 3,369,542 Tax foreclosures................................................ 655,028 - 655,028 Working capital deposit....................................... 561,257 - 561,257 Total current assets.................................... 44,473,557 11,074,453 55,548,010 NONCURRENT: Receivables,net of allowance for uncollectibles: Intergovernmental.......................................... - 577,484 577,484 Capital assets,nondepreciable............................. 25,431,782 6,838,382 32,270,164 Capital assets,net of accumulated depreciation....... 109,564,957 50,138,241 159,703,198 Total noncurrent assets............................... 134,996,739 57,554,107 192,550,846 TOTAL ASSETS.................................................... 179,470,296 68,628,560 248,098,856 DEFERRED OUTFLOWS OF RESOURCES: Deferred charges on refunding............................. 230,563 141,043 371,606 LIABILITIES CURRENT: Warrants payable............................................... 3,108,918 138,034 3,246,952 Accrued payroll.................................................. 2,827,805 - 2,827,805 Tax refunds payable........................................... 1,602,000 - 1,602,000 Accrued interest................................................ 318,739 166,140 484,879 Other liabilities................................................... 85,327 - 85,327 Liabilities due depositors..................................... 106,160 - 106,160 Compensated absences...................................... 804,000 57,000 861,000 Notes payable................................................... 660,000 - 660,000 Bonds payable.................................................. 4,634,425 3,240,133 7,874,558 Total current liabilities................................. 14,147,374 3,601,307 17,748,681 NONCURRENT: Compensated absences...................................... 670,000 33,000 703,000 Other postemployment benefits............................. 42,324,897 1,819,818 44,144,715 Bonds payable.................................................. 27,872,574 15,770,161 43,642,735 Total noncurrent liabilities............................ 70,867,471 17,622,979 88,490,450 TOTAL LIABILITIES................................................ 85,014,845 21,224,286 106,239,131 NET POSITION Net investment in capital assets................................ 106,117,880 42,012,200 148,130,080 Restricted for: Debt service...................................................... 762,324 - 762,324 Community preservation...................................... 7,176,228 - 7,176,228 Permanent funds: Expendable.................................................. 735,384 - 735,384 Nonexpendable............................................. 29,215 - 29,215 Gifts and grants................................................. 741,432 - 741,432 Unrestricted.......................................................... (20,876,449) 5,533,117 (15,343,332) TOTAL NET POSITION........................................... $ 94,686,014 $ 47,545,317 $ 142,231,331 See notes to basic financial statements. Town of North Andover, Massachusetts 25 Comprehensive Annual Financial Report STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2014 Program Revenues Operating Capital Charges for Grants and Grants and Net(Expense) Functions/Programs Expenses Services Contributions Contributions Revenue Primary Government: Governmental Activities: General government.................. $ 3,685,321 $ 573,817 $ 273,029 $ $ (2,838,475) Public safety............................ 15,242,286 2,495,472 152,746 (12,594,068) Education................................ 70,591,546 3,648,664 17,983,068 30,932 (48,928,882) Public works............................ 6,719,915 141,574 22,379 949,933 (5,606,029) Health and human services......... 2,228,573 148,718 446,031 - (1,633,824) Culture and recreation............... 1,453,223 2,056 90,203 826,907 (534,057) Support services....................... 1,444,333 - - - (1,444,333) Interest................................... 1,025,900 26,572 - (999,328) Total Governmental Activities... 102,391,097 7,010,301 18,994,028 1,807,772 (74,678,996)' Business-Type Activities: Water..................................... 3,200,373 5,237,290 15,186 - 2,052,103 Sewer..................................... 3,238,708 4,945,962 107,343 1,814,597 Osgood Hill.............................. 344,001 337,551 - (6,450) Total Business-Type Activities.. 6,783,082 10,520,803 122,529 - 3,860,260 Total Primary Government....... $ 109,174,179 $ 17,531,104 $ 19,116,557 $ 1,807,772 $ (70,718,7461 See notes to basic financial statements. (Continued) Town of North Andover, Massachusetts 26 Comprehensive Annual Financial Report STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2014 Primary Government Governmental Business-Type Activities Activities Total Changes in net position: Net(expense) revenue from previous page.... $ (74,678,996) $ 3,860,260 $ (70,718,746)' General revenues: Real estate and personal property taxes, net of tax refunds payable.................... 62,195,623 - 62,195,623 Tax liens.............................................. 570,085 - 570,085 Motor vehicle and other excise taxes......... 4,673,160 - 4,673,160 Penalties and interest............................. 501,903 - 501,903 Payments in lieu of taxes........................ 2,008,020 - 2,008,020 Community preservation taxes................. 1,433,013 - 1,433,013 Grants and contributions not restricted to specific programs............................... 2,279,506 - 2,279,506 Unrestricted investment income................ 241,618 - 241,618 Transfers, net.......................................... 832,290 (832,290) - Total general revenues and transfers............ 74,735,218 (832,290) 73,902,928 Change in net position......................... 156,222 3,027,960 3,184,182 Net Position: Beginning of year.................................. 94,529,792 44,517,357 139,047,149 End of year.......................................... $ 94,686,014 $ 47,545,317 $ 142,231,331 (Concluded) Town of North Andover, Massachusetts 27 Comprehensive Annual Financial Report GOVERNMENTALFUNDS BALANCE SHEET JUNE 30,2014 Municipal Nonmajor Total Community Highway Capital Governmental Governmental General Preservation Chapter90 Projects Funds Funds ASSETS Cash and cash equivalents..................................... $ 15,393,542 $ 6,794,353 $ - $ 5,617,397 $ 3,626,011 $ 31,431,303 Investments......................................................... - - - 378,867 378,867 Receivables,net of uncollectibles: Real estate and personal property taxes................ 1,083,256 - 1,083,256 Tax liens......................................................... 1,968,114 1,968,114 Motor vehicle and other excise taxes.................... 278,464 - 278,464 Community preservation.................................... - 22,580 - 22,580 Departmental and other..................................... 523,430 - - 43,326 566,756 Intergovernmental............................................. 399,232 369,000 2,038,164 462,527 3,268,923 Tax foreclosures................................................... 655,028 - - - 655,028 Due from other funds............................................. 415,971 415,971 TOTALASSETS.................................................. $ 20,717,037 $ 7,185,933 $ 2,038,164 $ 5,617,397 $ 4,510,731 $ 40,069,262 LIABILITIES Warrants payable............................................. $ 1,184,795 $ 9,705 $ 296,193 $ 1,515,644 $ 97,842 $ 3,104,179 Accrued payroll................................................ 2,612,661 - - - 215,144 2,827,805 Tax refunds payable.......................................... 1,602,000 - 1,602,000 Liabilities due depositors.................................... 106,160 106,160 Other liabilities................................................. 85,327 - - 85,327 Due to other funds............................................ - 85,911 - 330,060 415,971 Notes payable.................................................. 660,000 660,000 TOTAL LIABILITIES.............................................. 5,590,943 9,705 382,104 2,175,644 643,046 8,801,442 DEFERRED INFLOWS OF RESOURCES Unavailable revenues........................................ 5,016,229 391,580 1,656,060 43,326 7,107,195 FUND BALANCES Nonspendable................................................. - - - - 29,215 29,215 Restricted....................................................... 762,324 6,784,648 3,441,753 3,795,144 14,783,869 Assigned........................................................ 366,486 - - - 366,486 Unassigned..................................................... 8,981,055 8,981,055 TOTAL FUND BALANCES..................................... 10,109,865 6,784,648 3,441,753 3,824,359 24,160,625 TOTAL LIABILITIES,DEFERRED INFLOWS OF RESOURCES,AND FUND BALANCES................ $ 20,717,037 $ 7,185,933 $ 2,038,164 $ 5,617,397 $ 4,510,731 $ 40,069,262 See notes to basic financial statements. Town of North Andover, Massachusetts 28 Comprehensive Annual Financial Report RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TOTAL FUND BALANCES TO THE STATEMENT OF NET POSITION JUNE 30,2014 Total governmental fund balances..................................................................... $ 24,160,625 Capital assets(net)used in governmental activities are not financial resources and,therefore, are not reported in the funds.................................................. 134,996,739 Accounts receivable are not available to pay for current-period expenditures and,therefore, are unavailable in the funds................................. 7,107,195 Internal service funds are used by management to account for unemployment, health insurance activities.The assets and liabilities of the internal service funds are included in the governmental activities in the statement of net position........... 4,815,527 In the statement of activities, interest is accrued on outstanding long-term debt, whereas in governmental funds interest is not reported until due........................ (318,739) Long-term liabilities are not due and payable in the current period and,therefore, are not reported in the governmental funds. Bonds payable...................................................................................... (32,506,999) Deferred charges on refunding................................................................. 230,563 Other postemployment benefits................................................................ (42,324,897) Compensated absences......................................................................... (1,474,000) Net effect of reporting long-term liabilities............................................. (76,075,333) Net position of governmental activities................................................................ $ 94,686,014 See notes to basic financial statements. Town of North Andover, Massachusetts 29 Comprehensive Annual Financial Report GOVERNMENTALFUNDS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30,2014 Municipal Nonmajor Total Community Highway Capital Governmental Governmental General Preservation Chapter 90 Projects Funds Funds REVENUES: Real estate and personal property taxes, net of tax refunds................................ $ 61,992,217 $ $ $ $ $ 61,992,217 Tax and utility liens.................................. 594,247 594,247 Payments in lieu of taxes.......................... 1,867,019 141,001 2,008,020 Community preservation taxes................... - 1,433,914 - 1,433,914 Motor vehicle and other excise taxes........... 4,866,192 - - 4,866,192 Charges for services................................ 958,291 3,930,085 4,888,376 Penalties and interest on taxes.................. 578,989 - 578,989 Licenses and permits............................... 268,696 433,388 702,084 Fines and forfeitures................................ 105,671 - - 105,671 Intergovernmental................................... 17,589,455 805,907 587,498 3,312,000 22,294,860 Departmental and other............................ 1,332,588 - - 38,411 1,370,999 Contributions.......................................... - - 757,570 757,570 Investment income................................. 142,704 36,126 - 62,788 241,618 TOTAL REVENUES........................ 90,296,069 2,275,947 587,498 8,675,243 101,834,757 EXPENDITURES: Current: General government............................ 2,171,607 - - 3,466,954 212,305 5,850,866 Public safety...................................... 9,351,264 279,397 686,356 10,317,017 Education.......................................... 40,092,434 - - 6,809,864 46,902,298 Public works....................................... 4,508,698 587,498 1,025,655 67,928 6,189,779 Health and human services................... 1,084,887 - - - 483,569 1,568,456 Culture and recreation.......................... 861,157 1,120,803 - 157,265 2,139,225 Support Services................................. 1,239,502 - 102,819 - 1,342,321 Pension benefits................................. 10,837,358 - 10,837,358 Property and liability insurance............... 301,405 301,405 Employee benefits............................... 11,599,341 11,599,341 State and county charges......................... 1,254,988 1,254,988 Debt service: Principal............................................ 5,366,746 5,366,746 Principal-current refunding.................. 4,168,651 4,168,651 Interest............................................. 957,719 - 957,719 TOTAL EXPENDITURES.................. 93,795,757 1,120,803 587,498 4,874,825 8,417,287 108,796,170 EXCESS(DEFICIENCY)OF REVENUES OVER(UNDER)EXPENDITURES............. (3,499,688) 1,155,144 - (4,874,825) 257,956 (6,961,413) OTHER FINANCING SOURCES(USES): Issuance of bonds................................... - - 7,961,675 219,822 8,181,497 Issuance of refunding bonds...................... 4,010,000 - - 4,010,000 Premium from issuance of bonds............... 143,149 143,149 Premium from issuance of refunding bonds.. 218,946 - 218,946 Transfers in............................................ 1,548,828 49,825 1,598,653 Transfers out.......................................... (259,927) (259,927) TOTAL OTHER FINANCING SOURCES(USES)...................... 5,920,923 7,961,675 9,720 13,892,318 NET CHANGE IN FUND BALANCES.............. 2,421,235 1,155,144 3,086,850 267,676 6,930,905 FUND BALANCES AT BEGINNING OF YEAR.............................................. 7,688,630 5,629,504 354,903 3,556,683 17,229,720 FUND BALANCES AT END OF YEAR............ $ 10,109,865 $ 6,784,648 $ $ 3,441,753 $ 3,824,359 $ 24,160,625 See notes to basic financial statements. Town of North Andover, Massachusetts 30 Comprehensive Annual Financial Report RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2014 Net change in fund balances-total governmental funds.................................................... $ 6,930,905 Governmental funds report capital outlays as expenditures. However,in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay............................................................................................... 6,442,548 Depreciation expense.................................................................................... (5,974,767) Net effect of reporting capital assets......................................................... 467,781 Revenues in the Statement of Activities that do not provide current financial resources are unavailable in the Statement of Revenues, Expenditures and Changes in Fund Balances. Therefore,the recognition of revenue for various types of accounts receivable(i.e.,real estate and personal property,motor vehicle excise,etc.)differ between the two statements. This amount represents the net change in unavailable revenue.................................................................. (119,728) The issuance of long-term debt(e.g.,bonds and leases)provides current financial resources to governmental funds,while the repayment of the principal of long- term debt consumes the financial resources of governmental funds. Neither transaction,however,has any effect on net position. Also,governmental funds report the effect of premiums,discounts,and similar items when debt is first issued,whereas these amounts are deferred and amortized in the Statement of Activities. Issuance of bonds......................................................................................... (8,181,497) Issuance of refunding bonds........................................................................... (4,010,000) Premium from issuance of bonds..................................................................... (143,149) Premium from issuance of refunding bonds........................................................ (218,946) Debt service principal payments....................................................................... 5,366,746 Debt service principal payments-current refunding............................................. 4,168,651 Net effect of reporting long-term debt........................................................ (3,018,195) Some expenses reported in the Statement of Activities do not require the use of current financial resources and,therefore,are not reported as expenditures in the governmental funds. Net change in compensated absences accrual.................................................... 102,000 Net change in accrued interest on long-term debt................................................ 48,524 Net change in other postemployment benefits..................................................... (5,567,508) Amortization of deferred charges on refunding.................................................... (116,703) Net effect of recording long-term liabilities and amortizing deferred losses........ (5,533,687) Internal service funds are used by management to account for health insurance and workers'compensation activities. The net activity of internal service funds is reported with governmental activities........ 1,429,146 Change in net position of governmental activities............................................................. $ 156,222 See notes to basic financial statements. Town of North Andover, Massachusetts 31 Comprehensive Annual Financial Report PROPRIETARY FUNDS STATEMENT OF NET POSITION JUNE 30,2014 Governmental Business-type Activities-Enterprise Funds Activities Health Insurance Osgood Internal Service Water Sewer Hill Total Fund ASSETS CURRENT: Cash and cash equivalents.................................... $ 4,385,369 $ 3,554,352 $ 119,142 $ 8,058,863 $ 4,259,009 Receivables,net of allowance for uncollectibles: Userfees....................................................... 1,366,651 1,440,067 - 2,806,718 - Utility liens...................................................... 64,116 44,137 108,253 Intergovernmental............................................ - 100,619 100,619 - Working capital deposit......................................... - - - - 561,257 Total current assets...................................... 5,816,136 5,139,175 119,142 11,074,453 4,820,266 NONCURRENT: Receivables,net of allowance for uncollectibles: Intergovernmental............................................ - 577,484 - 577,484 - Capital assets,nondepreciable............................... 1,982,535 123,762 4,732,085 6,838,382 Capital assets,net of accumulated depreciation......... 27,199,927 21,678,363 1,259,951 50,138,241 Total noncurrent assets................................. 29,182,462 22,379,609 5,992,036 57,554,107 TOTALASSETS...................................................... 34,998,598 27,518,784 6,111,178 68,628,560 4,820,266 DEFERRED OUTFLOWS OF RESOURCES Deferred charges on refunding................................ 26,295 114,748 - 141,043 LIABILITIES CURRENT: Warrants payable................................................. 105,551 20,087 12,396 138,034 4,739 Accrued interest................................................... 47,430 118,710 - 166,140 - Compensated absences........................................ 33,000 21,000 3,000 57,000 Bonds payable..................................................... 1,464,699 1,775,434 - 3,240,133 - Total current liabilities................................... 1,650,680 1,935,231 15,396 3,601,307 4,739 NONCURRENT: Compensated absences........................................ 17,000 15,000 1,000 33,000 - Other postemployment benefits............................... 1,102,754 717,064 - 1,819,818 Bonds payable..................................................... 7,857,775 7,912,386 - 15,770,161 Total noncurrent liabilities.............................. 8,977,529 8,644,450 1,000 17,622,979 TOTAL LIABILITIES................................................. 10,628,209 10,579,681 16,396 21,224,286 4,739 NET POSITION Net investment in capital assets.................................. 21,345,982 14,674,182 5,992,036 42,012,200 - Unrestricted............................................................ 3,050,702 2,379,669 102,746 5,533,117 4,815,527 TOTAL NET POSITION............................................ $ 24,396,684 $ 17,053,851 $ 6,094,782 $ 47,545,317 $ 4,815,527 See notes to basic financial statements. Town of North Andover, Massachusetts 32 Comprehensive Annual Financial Report PROPRIETARY FUNDS STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET POSITION YEAR ENDED JUNE 30,2014 Governmental Business-type Activities-Enterprise Funds Activities Health Insurance Osgood Internal Service Water Sewer Hill Total Fund OPERATING REVENUES: Employee contributions................................................ $ $ $ $ $ 1,601,292 Employer contributions................................................. 6,233,531 Charges for services.................................................... 5,213,441 4,916,245 337,551 10,467,237 - Penalties and interest................................................... 23,849 29,717 - 53,566 - TOTAL OPERATING REVENUES............................... 5,237,290 4,945,962 337,551 10,520,803 7,834,823 OPERATING EXPENSES: Cost of service and administration.................................. 1,869,855 556,718 252,636 2,679,209 - GLSD assessment....................................................... - 1,322,544 - 1,322,544 Repairs and maintenance............................................. 191,949 48,863 4,684 245,496 Depreciation............................................................... 863,677 849,346 86,681 1,799,704 - Employee benefits....................................................... - - - - 6,411,053 TOTAL OPERATING EXPENSES............................... 2,925,481 2,777,471 344,001 6,046,953 6,411,053 OPERATING INCOME(LOSS).................................... 2,311,809 2,168,491 (6,450) 4,473,850 1,423,770 NONOPERATING REVENUES(EXPENSES): Investment income...................................................... 15,186 9,130 24,316 5,376 I nterest expense......................................................... (274,892) (461,237) (736,129) - Intergovernmental....................................................... 98,213 98,213 TOTAL NONOPERATING REVENUES(EXPENSES),NET................................ (259,706) (353,894) (613,600) 5,376 INCOME(LOSS)BEFORE CONTRIBUTIONS ANDTRANSFERS................................................. 2,052,103 1,814,597 (6,450) 3,860,250 1,429,146 CAPITAL CONTRIBUTIONS AND TRANSFERS: Capital Contributions.................................................... - - 506,436 506,436 - Transfers out.............................................................. (878,741) (413,525) (46,460) (1,338,726) TOTAL CAPITAL CONTRIBUTIONS AND TRANSFERS.. (878,741) (413,525) 459,976 (832,290) - CHANGE IN NET POSITION....................................... 1,173,362 1,401,072 453,526 3,027,960 1,429,146 NET POSITION AT BEGINNING OF YEAR........................ 23,223,322 15,652,779 5,641,256 44,517,357 3,386,381 NET POSITION AT END OF YEAR................................... $ 24,396,684 $ 17,053,851 $ 6,094,782 $ 47,545,317 $ 4,815,527 See notes to basic financial statements. Town of North Andover, Massachusetts 33 Comprehensive Annual Financial Report PROPRIETARY FUNDS STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30,2014 Business-type Activities-Enterprise Funds Governmental Activities- Health Insurance Osgood Internal Service Water Sewer Hill Total Fund CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers and users.................................................. $ 5,275,261 $ 4,995,737 $ 337,551 $ 10,608,549 $ 1,601,292 Receipts from interfund services provided.......................................... - - - - 6,233,531 Payments to vendors..................................................................... (1,119,244) (1,498,366) (145,174) (2,762,784) - Payments to employees................................................................. (870,803) (378,527) (113,934) (1,363,264) Payments for interfund services used................................................ (7,653,678) NET CASH FROM OPERATING ACTIVITIES......................................... 3,285,214 3,118,844 78,443 6,482,501 181,145 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers out............................................................................... (878,741) (413,525) (46,460) (1,338,726) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds from the issuance of bonds................................................ 267,191 - - 267,191 Proceeds from the issuance of refunding bonds................................... 119,056 80,944 200,000 Capital contributions...................................................................... - - 506,436 506,436 Acquisition and construction of capital assets...................................... (965,319) (805,271) (506,436) (2,277,026) Principal payments on bonds........................................................... (1,417,953) (1,643,903) (3,061,856) Principal payments on bonds-current refunding.................................. (119,858) (1,261,489) (1,381,347) Interest expense........................................................................... (268,176) (350,852) (619,028) NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES....... (2,385,059) (3,980,571) (6,365,630) - CASH FLOWS FROM INVESTING ACTIVITIES: Investment income........................................................................ 15,186 9,130 - 24,316 5,376 NET CHANGE IN CASH AND CASH EQUIVALENTS.............................. 36,600 (1,266,122) 31,983 (1,197,539) 186,521 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR.................. 4,348,769 4,820,474 87,159 9,256,402 4,072,488 CASH AND CASH EQUIVALENTS AT END OF YEAR............................. $ 4,385,369 $ 3,554,352 $ 119,142 $ 8,058,863 $ 4,259,009 RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH FROM OPERATING ACTIVITIES: Operating income(loss)................................................................. $ 2,311,809 $ 2,168,491 $ (6,450) $ 4,473,850 $ 1,423,770 Adjustments to reconcile operating income(loss)to net cash from operating activities: Depreciation............................................................................ 863,677 849,346 86,681 1,799,704 - Changes in assets and liabilities: User fees............................................................................ 22,101 30,937 - 53,038 Utility liens........................................................................... 15,870 18,838 34,708 Working capital deposit.......................................................... - - - (561,257) Warrants payable.................................................................. (29,952) (8,018) (1,788) (39,758) 4,632 Health claims payable............................................................ - (686,000) Accrued compensated absences.............................................. 10,000 (11,000) (1,000) Other postemployment benefits................................................ 91,709 70,250 - 161,959 Total adjustments.............................................................. 973,405 950,353 84,893 2,008,651 (1,242,625) NET CASH FROM OPERATING ACTIVITIES......................................... $ 3,285,214 $ 3,118,844 $ 78,443 $ 6,482,501 $ 181,145 NONCASH INVESTING,CAPITAL,AND FINANCING ACTIVITIES: Intergovernmental debt service subsidy(MCWT)................................. $ - $ 99,687 $ - $ 99,687 $ - Net change in deferred charges....................................................... 14,492 30,713 45,205 See notes to basic financial statements. Town of North Andover, Massachusetts 34 Comprehensive Annual Financial Report FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2014 Private Purpose Agency Trust Funds Funds ASSETS CURRENT: Cash and cash equivalents........................................ $ 91,736 $ 4,158,338 LIABILITIES Warrants payable..................................................... - 60,813 Liabilities due depositors........................................... - 4,097,525 TOTAL LIABILITIES..................................................... - 4,158,338 NET POSITION Held in trust for other purposes................................... $ 91,736 $ - See notes to basic financial statements. Town of North Andover, Massachusetts 35 Comprehensive Annual Financial Report FIDUCIARY FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION YEAR ENDED JUNE 30, 2014 Private Purpose Trust Funds ADDITIONS: Contributions: Private donations..................................................... $ 9,436 Net investment income: Interest.................................................................. 26 TOTAL ADDITIONS............................................. 9,462 CHANGE IN NET POSITION.................................. 9,462 NET POSITION AT BEGINNING OF YEAR....................... 82,274 NET POSITION AT END OF YEAR................................. $ 91,736 See notes to basic financial statements. Town of North Andover, Massachusetts 36 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying basic financial statements of the Town of North Andover, Massachusetts (Town) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The Governmental Accounting Standards Board (GASB) is the recognized standard-setting body for establishing governmental accounting and financial reporting principles. The significant accounting policies are described herein. A. Reporting Entity The Town is a municipal corporation that is governed by an elected Board of Selectmen (Board). For financial reporting purposes, the Town has included all funds, organizations, account groups, agencies, boards, commissions and institutions. The Town has also considered all potential component units for which it is financially accountable as well as other organizations for which the nature and significance of their relationship with the Town are such that exclusion would cause the basic financial statements to be misleading or incomplete. As required by GAAP, these basic financial statements present the Town (the primary government)and its component units. It has been determined that there are no component units that meet the requirements for inclusion in the Town's financial statements. Joint Venture Ajoint venture is an organization (resulting from a contractual arrangement)that is owned, operated and governed by two or more participants as a separate and specific activity subject to joint control in which the participants retain an ongoing financial interest or ongoing financial responsibility. Joint control means that no single participant has the ability to unilaterally control the financial or operating policies of the joint venture. The Town participates in the following joint ventures with other municipalities to pool resources and share the costs, risks, and rewards of providing goods and services to venture participants directly, or for the benefit of the general public or specified recipients. Greater Lawrence Sanitary District(GLSD) GLSD operates a wastewater treatment plant for five member communities and is located within the Town. The GLSD is governed by a seven member board consisting of one appointed representative from the Town. The Town is indirectly liable for the GLSD's debt and other expenditures and is assessed annually for its share of operating and capital costs. For the year ended June 30, 2014, the Town's assessment totaled $1,322,544. Separate financial statements may be obtained by writing to the Treasurer of the GLSD at 240 Charles Street, North Andover, MA 01845. Greater Lawrence Regional Technical Vocational School(GLRTVS) The GLRTVS is governed by a seven member school committee consisting of one elected representative from the Town. The Town is indirectly liable for the GLRTVS' debt and other expenditures and is assessed annually for its share of operating and capital costs. For the year ended June 30, 2014, the Town's assessment totaled $240,750. Separate financial statements may be obtained by writing to the Treasurer of the GLRTVS at 57 River Road, Andover, MA 01810. Town of North Andover, Massachusetts 37 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 B. Government-Wide and Fund Financial Statements Government-Wide Financial Statements The government-wide financial statements (i.e., statement of net position and the statement of changes in net position) report information on all of the non-fiduciary activities of the primary government and its component units. Governmental activities, which are primarily supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which are supported primarily by user fees and charges. Fund Financial Statements Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Nonmajor funds are aggregated and displayed in a single column. Major Fund Criteria Major funds must be reported if the following criteria are met: • If the total assets, deferred outflows of resources, liabilities, deferred inflows of resources, revenues, or expenditures/expenses of an individual governmental or enterprise fund are at least 10 percent of the corresponding element (assets, deferred outflows of resources, liabilities, deferred inflows of resources, etc.)for all funds of that category or type (total governmental or total enterprise funds), and • If the total assets, deferred outflows of resources, liabilities, deferred inflows of resources, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding element for all governmental and enterprise funds combined. Additionally, any other governmental or enterprise fund that management believes is particularly significant to the basic financial statements may be reported as a major fund. Fiduciary funds are reported by fund type. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation Government-Wide Financial Statements The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded when the liabilities are incurred. Real estate and personal property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The statement of activities demonstrates the degree to which the direct expenses of a particular function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include the following: • Charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment. Town of North Andover, Massachusetts 38 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 • Grants and contributions that are restricted to meeting the operational requirements of a particular function or segment. • Grants and contributions that are restricted to meeting the capital requirements of a particular function or segment. Taxes and other items not identifiable as program revenues are reported as general revenues. For the most part, the effect of interfund activity has been removed from the government-wide financial statements. However, the effect of interfund services provided and used between functions is not eliminated as the elimination of these charges would distort the direct costs and program revenues reported for the functions affected. Fund Financial Statements Governmental fund financial statements are reported using the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences, claims and judgments which are recognized when the obligations are expected to be liquidated with current expendable available resources. Real estate and personal property tax revenues are considered available if they are collected within 60 days after year-end. Investment income is susceptible to accrual. Other receipts and tax revenues become measurable and available when the cash is received and are recognized as revenue at that time. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria is met. Expenditure driven grants recognize revenue when the qualifying expenditures are incurred and all other grant requirements are met. The following major governmental funds are reported: The general fund is the primary operating fund. It is used to account for all financial resources, except those that are required to be accounted for in another fund. The community preservation fund is a special revenue fund used to account for the 3% local real estate tax surcharge on nonexempt property(and matching state trust fund distribution)that can be used for open space, historic resource and affordable housing purposes. Property exempt from the surcharge consists of the first $100,000 of all residential property and also property owned by low income seniors with a low or moderate income as defined by Massachusetts Department of Revenue (DOR)guidelines. Disbursements from this fund must originate from the Community Preservation Committee and be approved by Town Meeting. The highway chapter 90 fund is a capital projects fund used to account for activities reimbursed through the State's Chapter 90 highway improvement program. The municipal capital projects fund is used to account for the acquisition of non-school related capital assets that are funded through both appropriations and borrowings. Town of North Andover, Massachusetts 39 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 The nonmajor governmental funds consist of other special revenue, capital projects and permanent funds that are aggregated and presented in the nonmajorgovernmental funds column on the governmental funds financial statements. The following describes the general use of these fund types: The special revenue fund is used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than permanent funds or capital projects. The capital projects fund is used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets of the governmental funds. The permanent fund is used to account for and report financial resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the governmental programs. Proprietary fund financial statements are reported using the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded when the liabilities are incurred. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary funds principle ongoing operations. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. The following major proprietary funds are reported: The water enterprise fund is used to account for the water activities. The sewer enterprise fund is used to account for the sewer activities. The Osgood Hill enterprise fund is used to account for the operation of Osgood Hill Estate activities. Additionally, the following proprietary fund type is reported: The internal service fund is used to account for the financing of services provided by one department to other departments or governmental units. This fund is used to account for risk financing activities related to employees' health insurance. Fiduciary fund financial statements are reported using the flow of economic resources measurement focus and use the accrual basis of accounting, except for agency funds which have no measurement focus. Fiduciary funds are used to account for assets held in a trustee capacity for others that cannot be used to support the governmental programs. The following fiduciary fund types are reported: The private-purpose trust fund is used to account for trust arrangements that exclusively benefit individuals, private organizations, or other governments. Some of these trusts have donor restrictions and trustee policies that do not allow the endowment portion and any unrealized appreciation to be spent. The donor restrictions and trustee policies only allows the trustees to authorize spending of the realized investment earnings. The Town's educational scholarship trusts are accounted for in this fund. Town of North Andover, Massachusetts 40 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 The agency fund is used to account for assets held in a custodial capacity. Such assets consist primarily of performance bonds and bid deposits. Agency funds do not present the results of operations or have a measurement focus. D. Cash and Investments Government-Wide and Fund Financial Statements Cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with an original maturity of three months or less from the date of acquisition. Investments are carried at fair value. E. Accounts Receivable Government-Wide and Fund Financial Statements The recognition of revenue related to accounts receivable reported in the government-wide financial statements and the proprietary funds and fiduciary funds financial statements are reported under the accrual basis of accounting. The recognition of revenue related to accounts receivable reported in the governmental funds financial statements are reported under the modified accrual basis of accounting. Real Estate, Personal Property Taxes and Tax Liens Real estate and personal property taxes are levied and based on values assessed on January 1 st of every year. Assessed values are established by the Board of Assessor's for 100% of the estimated fair market value. Taxes are due on August 1 st, November 1 st, February 1 st and May 1 st and are subject to penalties and interest if they are not paid by the respective due date. Real estate tax liens are processed one year after the close of the valuation year on delinquent properties and are recorded as receivables in the year they are processed. Real estate receivables are secured via the tax lien process and are considered 100% collectible. Accordingly, an allowance for uncollectibles is not reported. Personal property taxes cannot be secured through the lien process. The allowance for uncollectibles is estimated based on historical trends and specific account analysis. Motor Vehicle Excise Motor vehicle excise taxes are assessed annually for each vehicle registered and are recorded as receivables in the year of the levy. The Commonwealth is responsible for reporting the number of vehicles registered and the fair values of those vehicles. The tax calculation is the fair value of the vehicle multiplied by$25 per$1,000 of value. The allowance for uncollectibles is estimated based on historical trends and specific account analysis. Town of North Andover, Massachusetts 41 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 Community Preservation Surcharges Community preservation surcharges are levied annually at a rate of 3%of resident's real estate tax bills with exemptions for the first$100,000 of residential property and property owned by qualified persons with low income and seniors (60+)with low or moderate income defined by DOR guidelines. The surcharge is due with the real estate tax on August 1st, November 1st, February 1st and May 1st and are subject to penalties and interest if they are not paid by the respective due date. Overdue surcharges are included on the tax liens processed on delinquent real estate taxes. Surcharges are recorded as receivables in the year of the levy. Since the receivables are secured via the lien process, these accounts are considered 100% collectible and therefore do not report an allowance for uncollectibles. Water and Sewer User Charges and Utility Liens User fees are levied monthly based on individual meter readings and are subject to penalties and interest if they are not paid by the respective due date. Water and sewer liens are processed approximately six months after the end of the year and are included as a lien on the property owner's tax bill. Water and sewer charges and liens are recorded as receivables in the year of the levy. Since the receivables are secured via the lien process, these accounts are considered 100% collectible and therefore do not report an allowance for uncollectibles. Departmental and Other Departmental and other receivables consist primarily of amounts due from ambulance charges and police details. These receivables are recorded when the applicable service has been performed. The allowance for uncollectibles is estimated based on historical trends and specific account analysis. Intergovernmental Various federal and state grants for operating and capital purposes are applied for and received annually. For non-expenditure driven grants, receivables are recorded as soon as all eligibility requirements imposed by the provider have been met. For expenditure driven grants, receivables are recorded when the qualifying expenditures are incurred and all other grant requirements are met. These receivables are considered 100% collectible and therefore do not report an allowance for uncollectibles. F. Inventories Government-Wide and Fund Financial Statements Inventories are recorded as expenditures at the time of purchase. Such inventories are not material in total to the government-wide and fund financial statements, and therefore are not reported. Town of North Andover, Massachusetts 42 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 G. Capital Assets Government-Wide and Proprietary Fund Financial Statements Capital assets, which include land, land improvements, buildings and improvements, machinery and equipment, library books, vehicles, infrastructure (e.g., roads, treatment plants, pump stations ,sewer mains and similar items) and construction-in-progress, are reported in the applicable governmental or business-type activity column of the government-wide financial statements and in the proprietary fund financial statements. Capital assets are recorded at historical cost, or at estimated historical cost, if actual historical cost is not available. Donated capital assets are recorded at the estimated fair market value at the date of donation. Except for the capital assets of the governmental activities column in the government-wide financial statements, construction period interest is capitalized on constructed capital assets. All purchases and construction costs in excess of$10,000 are capitalized at the date of acquisition or construction, respectively, with expected useful lives of greater than one year. Capital assets (excluding land) are depreciated on a straight-line basis. The estimated useful lives of capital assets are as follows: Estimated Useful Life Capital Asset Type (in years) Land improvements................................ 20-30 Buildings and improvements..................... 7-50 Machinery and equipment........................ 3-20 Library books......................................... 10 Vehicles............................................... 5 Treatment plants.................................... 10-40 Pump stations........................................ 20-40 Reservoirs............................................ 20-40 Infrastructure......................................... 20-60 The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized and are treated as expenses when incurred. Improvements are capitalized. Governmental Fund Financial Statements Capital asset costs are recorded as expenditures in the acquiring fund in the year of the purchase. H. Deferred Outflows/Inflows of Resources Government-Wide Financial Statements (Net Position) In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s)and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Town has reported deferred charges on refunding in this category. Town of North Andover, Massachusetts 43 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s)and so will not be recognized as an inflow of resources (revenue) until that time. The Town does not have any items that qualify for reporting in this category. Governmental Fund Financial Statements In addition to liabilities, the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents assets that have been recorded in the governmental fund financial statements but the revenue is not available and so will not be recognized as an inflow of resources (revenue) until it becomes available. The Town has reported unavailable revenues from property taxes in this category. I. Interfund Receivables and Pavables During the course of its operations, transactions occur between and within individual funds that may result in amounts owed between funds. Government-Wide Financial Statements Transactions of a buyer/seller nature between and within governmental funds are eliminated from the governmental activities in the statement of net position. Any residual balances outstanding between the governmental activities and business-type activities are reported in the statement of net position as "internal balances". Fund Financial Statements Transactions of a buyer/seller nature between and within funds are not eliminated from the individual fund statements. Receivables and payables resulting from these transactions are classified as "Due from other funds" or"Due to other funds"on the balance sheet. J. Interfund Transfers During the course of its operations, resources are permanently reallocated between and within funds. These transactions are reported as transfers in and transfers out. Government-Wide Financial Statements Transfers between and within governmental funds are eliminated from the governmental activities in the statement of net position. Any residual balances outstanding between the governmental activities and business- type activities are reported in the statement of activities as "Transfers, net". Fund Financial Statements Transfers between and within funds are not eliminated from the individual fund statements and are reported as transfers in and transfers out. Town of North Andover, Massachusetts 44 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 K. Net Position and Fund Eguity Government-Wide Financial Statements (Net Position) Net position reported as "net investment in capital assets" includes capital assets, net of accumulated depreciation, less the principal balance of outstanding debt used to acquire capital assets. Unspent proceeds of capital related debt are not considered to be capital assets. Net position is reported as restricted when amounts that are not available for appropriation or are legally restricted by outside parties for a specific future use. Net position has been "restricted for" the following: "Debt service" represents amounts accumulated from the Massachusetts School Building Authority (MSBA)to reduce school construction excluded debt service costs over the life of the loans. "Community preservation" represents amounts restricted for the purpose of acquiring land for conservation, recreational, and affordable housing purposes. "Permanent funds—expendable" represents the amount of realized and unrealized investment earnings of donor restricted trusts. The donor restrictions and trustee policies only allows the trustees to approve spending of the realized investment earnings that support governmental programs. "Permanent funds - nonexpendable" represents the endowment portion of donor restricted trusts that support governmental programs. "Gifts and grants" represents restrictions placed on assets from outside parties. Sometimes the Town will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds)and unrestricted resources. In order to calculate the amounts to report as restricted— net position and unrestricted— net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the Town's policy to consider restricted — net position to have been depleted before unrestricted —net position is applied. Fund Financial Statements (Fund Balances) Governmental fund balances are classified as nonspendable, restricted, committed, assigned, or unassigned based on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The governmental fund balance classifications are as follows: "Nonspendable"fund balance includes amounts that cannot be spent because they are either not in spendable form or they are legally or contractually required to be maintained intact. "Restricted" fund balance includes amounts subject to constraints placed on the use of resources that are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or that are imposed by law through constitutional provisions or enabling legislation. Town of North Andover, Massachusetts 45 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 "Committed"fund balance includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government's highest level of decision-making authority. Town Meeting is the highest level of decision-making authority for the government that can, by adoption of an article prior to the end of the year, commit fund balance. Once adopted, the limitation imposed by the article remains in place until a similar action is taken to remove or revise the limitation. "Assigned" fund balance includes amounts that are constrained by the Town's intent to be used for specific purposes, but are neither restricted nor committed. Town Meeting may assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year's appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment. "Unassigned"fund balance includes the residual classification for the general fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund. The Town's spending policy is to spend restricted fund balance first, followed by committed, assigned and unassigned fund balance. Most governmental funds are designated for one purpose at the time of their creation. Therefore, any expenditure from the fund will be allocated to the applicable fund balance classifications in the order of the aforementioned spending policy. The general fund and certain other funds may have more than one purpose. L. Long-term debt Government-Wide and Proprietary Fund Financial Statements Long-term debt is reported as liabilities in the government-wide and proprietary fund statement of net position. Material bond premiums and discounts are deferred and amortized over the life of the bonds using the straight- line method. Bonds payable are reported net of the applicable bond premium or discount. Governmental Fund Financial Statements The face amount of governmental funds long-term debt is reported as other financing sources. Bond premiums and discounts, as well as issuance costs, are recognized in the current period. Bond premiums are reported as other financing sources and bond discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual bond proceeds received, are reported as general government expenditures. M. Investment Income Excluding the permanent funds, Investment income derived from major and nonmajor governmental funds is legally assigned to the general fund unless otherwise directed by Massachusetts General Law (MGL). N. Compensated Absences Employees are granted vacation and sick leave in varying amounts based on collective bargaining agreements, state laws and executive policies. Compensated absence liabilities related to both governmental and business- type activities are normally paid from the funds reporting payroll and related expenditures. Compensated absences are reported in governmental funds only if they have matured. Town of North Andover, Massachusetts 46 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 Government-Wide and Proprietary Fund Financial Statements Vested or accumulated vacation and sick leave are reported as liabilities and expensed as incurred. Governmental Fund Financial Statements Vested or accumulated vacation and sick leave, which will be liquidated with expendable available financial resources, are reported as expenditures and fund liabilities upon maturity of the liability. O. Use of Estimates Government-Wide and Fund Financial Statements The preparation of basic financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure for contingent assets and liabilities at the date of the basic financial statements and the reported amounts of the revenues and expenditures/expenses during the year. Actual results could vary from estimates that were used. P. Total Column Government-Wide Financial Statements The total column presented on the government-wide financial statements represents consolidated financial information. Fund Financial Statements The total column on the fund financial statements is presented only to facilitate financial analysis. Data in this column is not the equivalent of consolidated financial information. Q. Appropriation Deficits A general fund appropriation deficit was reported in state and county charges. This deficit is not required to be raised in the subsequent year tax levy. NOTE 2 -CASH AND INVESTMENTS A cash and investment pool is maintained that is available for use by all funds. Each fund type's portion of this pool is displayed on the balance sheet as "Cash and Cash Equivalents." The deposits and investments of the trust funds are held separately from those of other funds. Statutes authorize the investment in obligations of the U.S. Treasury, agencies, and instrumentalities, certificates of deposit, repurchase agreements, money market accounts, bank deposits and the State Treasurer's Investment Pool (Pool). The Treasurer may also invest trust funds in securities, other than mortgages or collateral loans, which are legal for the investment of funds of savings banks under the laws of the Commonwealth. In addition, there are various restrictions limiting the amount and length of deposits and investments. The Pool meets the criteria of an external investment pool. The Pool is administered by the Massachusetts Municipal Depository Trust(MMDT), which was established by the Treasurer of the Commonwealth who serves as Trustee. The fair value of the position in the Pool is the same as the value of the Pool shares. Town of North Andover, Massachusetts 47 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 Custodial Credit Risk—Deposits In the case of deposits, this is the risk that in the event of a bank failure, the Town's deposits may not be returned to it. The Town's policy is to minimize custodial credit risk by only investing in highly rated banks, which is determined through the utilization of a bank rating service. At year-end, the carrying amount of deposits totaled $43,239,985 and the bank balance totaled $44,384,812. Of the bank balance, $2,713,172 was covered by Federal Depository Insurance, $30,265,294 was covered by the Depositor's Insurance Fund, and $11,406,346 was collateralized. Interest Rate Risk The Town's investment policy limits investment maturities to one year as a means of managing its exposure to fair value losses arising from increasing interest rates. The Town participates in MMDT, which maintains a cash portfolio and a short-term bond fund with combined average maturities of approximately three months. As of June 30, 2014, the Town had the following investments and maturities: Maturities Investment Type Fair Value 1-5 Years 6-10 Years Debt Securities Bond Mutual Funds....................................$ 98,502 $ - $ 98,502 Repurchase Agreements............................ 630,000 630,000 - Total Debt Securities......................................... 728,502 $ 630,000 $ 98,502 Other Investments Equity Mutual Funds......................................... 280,365 Money Market Mutual Funds........................ 459,918 MMDT..................................................... 3,669,346 Total Investments..............................................$ 5,138,131 Custodial Credit Risk— Investments For an investment, this is the risk that, in the event of a failure by the counterparty, the Town will not be able to recover the value of its investments or collateral security that are in the possession of an outside party. The Town did not have investments that were exposed to custodial credit risk. The Town's policy to minimize custodial credit risk is to obtain from brokerage houses and broker/dealers 1)audited financial statements, 2) proof of National Association of Security Dealers certification, 3)a statement that the dealer has read the Town's investment policy and will comply with it and 4) be in business for no less than five years and have a minimum capitalization of$10 million. Credit Risk Standard and Poor's Investors Service rated the $98,502 of bond mutual funds AA. The $630,000 of repurchase agreements and $3,669,346 of MMDT deposits were unrated. The Town's investment policy limits investments in debt securities to U.S. Treasuries and U.S. Agency Obligations, which are AAA rated, and like-kind investments that are fully collateralized. Town of North Andover, Massachusetts 48 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 Concentration of Credit Risk The Town limits the amount the Town may invest in any one issuer to 10%. The Town does not have investments in corporate bonds or equity securities and therefore does not have exposure to concentration of credit risk. NOTE 3 -RECEIVABLES At June 30, 2014, receivables for the individual major and non-major governmental funds including the applicable allowances for uncollectible accounts are as follows: Allowance Gross for Net Amount Uncollectibles Amount Receivables: Real estate and personal property taxes......................... $ 1,204,256 $ (121,000) $ 1,083,256 Tax liens.................................................................. 1,968,114 - 1,968,114 Motor vehicle and other excise taxes............................. 670,464 (392,000) 278,464 Community preservation surcharges.............................. 22,580 - 22,580 Departmental and other.............................................. 837,745 (270,989) 566,756 Intergovernmental...................................................... 3,268,923 - 3,268,923 Total......................................................................$ 7,972,082 $ (783,989) $ 7,188,093 At June 30, 2014, receivables for the water and sewer enterprise funds are as follows: Allowance Gross for Net Amount Uncollectibles Amount Receivables: User charges............................................................ $ 2,806,718 $ - $ 2,806,718 Utility liens................................................................ 108,253 - 108,253 Intergovernmental...................................................... 678,103 - 678,103 $ 3,593,074 $ - $ 3,593,074 Governmental funds report unavailable revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. At the end of the current year, the various components of unavailable revenue reported in the governmental funds were as follows: Other General Governmental Fund Funds Total Receivable and other asset type: Real estate and personal property taxes......................... $ 1,191,961 $ - $ 1,191,961 Tax liens.................................................................. 1,968,114 - 1,968,114 Motor vehicle and other excise taxes............................. 278,464 - 278,464 Community preservation surcharges.............................. - 22,580 22,580 Departmental and other.............................................. 523,430 43,326 566,756 Intergovernmental (highway construction assistance)........ - 1,656,060 1,656,060 Intergovernmental (school construction assistance).......... 399,232 - 399,232 Intergovernmental (CPA state match)............................ - 369,000 369,000 Tax foreclosures........................................................ 655,028 - 655,028 Total......................................................................$ 5,016,229 $ 2,090,966 $ 7,107,195 Town of North Andover, Massachusetts 49 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 NOTE 4 -CAPITAL ASSETS Capital asset activity for the year ended June 30, 2014, is as follows: Beginning Ending Governmental Activities: Balance Increases Decreases Balance Capital assets not being depreciated: Land........................................................ $ 22,158,954 $ - $ - $ 22,158,954 Construction in progress............................... 4,663,916 3,184,768 (4,575,856) 3,272,828 Total capital assets not being depreciated.... 26,822,870 3,184,768 (4,575,856) 25,431,782 Capital assets beino depreciated: Land improvements..................................... 3,257,450 - - 3,257,450 Buildings and building improvements.............. 133,795,275 5,629,486 - 139,424,761 Machinery and equipment............................. 9,136,975 344,138 (121,475) 9,359,638 Library books............................................. 4,319,452 103,488 - 4,422,940 Vehicles.................................................... 5,729,330 609,325 (326,851) 6,011,804 Infrastructure............................................. 38,784,176 1,147,199 - 39,931,375 Total capital assets being depreciated......... 195,022,658 7,833,636 (448,326) 202,407,968 Less accumulated depreciation for: Land improvements..................................... (2,361,135) (98,261) - (2,459,396) Buildings and improvements.......................... (52,361,529) (3,590,543) - (55,952,072) Machinery and equipment............................. (5,633,915) (646,120) 121,475 (6,158,560) Library books............................................. (4,044,977) (47,394) - (4,092,371) Vehicles.................................................... (3,668,900) (334,842) 326,851 (3,676,891) Infrastructure............................................. (19,246,114) (1,257,607) - (20,503,721) Total accumulated depreciation................. (87,316,570) (5,974,767) 448,326 (92,843,011) Total capital assets being depreciated, net........... 107,706,088 1,858,869 - 109,564,957 Total governmental activities capital assets, net.... $ 134,528,958 $ 5,043,637 $ (4,575,856) $ 134,996,739 Town of North Andover, Massachusetts 50 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 Ending Ending Business-Type Activities: Balance Increases Decreases Balance Capital assets not being depreciated: Land.........................................................$ 6,097,262 $ - $ - $ 6,097,262 Construction in progress............................... 234,684 506,436 - 741,120 Total capital assets not being depreciated.... 6,331,946 506,436 - 6,838,382 Capital assets being depreciated: Land improvements..................................... 232,105 - - 232,105 Buildings and improvements......................... 2,028,474 379,923 - 2,408,397 Machinery and equipment............................. 2,291,645 393,728 - 2,685,373 Vehicles.................................................... 566,086 3,157 - 569,243 Treatment plants......................................... 16,573,234 - - 16,573,234 Pump stations............................................ 4,493,451 80,484 - 4,573,935 Reservoirs................................................. 1,477,296 - - 1,477,296 Infrastructure............................................. 54,399,127 913,298 - 55,312,425 Total capital assets being depreciated......... 82,061,418 1,770,590 - 83,832,008 Less accumulated depreciation for: Land improvements..................................... (118,587) (9,619) - (128,206) Buildings and improvements......................... (878,782) (84,495) - (963,277) Machinery and equipment............................. (1,178,356) (154,596) - (1,332,952) Vehicles.................................................... (373,035) (30,567) - (403,602) Treatment plants......................................... (10,722,930) (430,838) - (11,153,768) Pump stations............................................ (2,345,667) (120,385) - (2,466,052) Reservoirs................................................. (1,241,826) (36,396) - (1,278,222) Infrastructure............................................. (15,034,880) (932,808) - (15,967,688) Total accumulated depreciation................. (31,894,063) (1,799,704) - (33,693,767) Total capital assets being depreciated, net........... 50,167,355 (29,114) - 50,138,241 Total business-type activities capital assets, net....$ 56,499,301 $ 477,322 $ - $ 56,976,623 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General government................................................. $ 314,043 Public safety........................................................... 560,656 Education............................................................... 3,273,944 Public works........................................................... 1,498,648 Human services...................................................... 139,963 Culture and recreation.............................................. 187,513 Total depreciation expense-governmental activities............ $ 5,974,767 Business-Type Activities: Water..................................................................... $ 863,677 Sewer.................................................................... 849,346 Osgood Hill............................................................. 86,681 Total depreciation expense- business-type activities............ $ 1,799,704 Town of North Andover, Massachusetts 51 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 NOTE 5- INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS Interfund receivables and payables totaled $415,971 as of June 30, 2014 and consisted of$85,911 due to the general fund from the highway chapter 90 fund, as well as $330,060 due to the general fund from the State and Federal education grant funds. The outstanding balances resulted from the time lag between the dates that reimbursable expenditures are incurred and reimbursements from the Massachusetts Highway Department, as well as other State and Federal entities, are received. Interfund transfers for the year ended June 30, 2014, are summarized as follows: Operating Transfers In: Nonmajor General Governmental Operating Transfers Out: Fund Funds Total Nonmajor Governmental Funds............... $ 210,102 $ 49,825 $ 259,927 (1) Water Enterprise Fund........................... 878,741 - 878,741 (2) Sewer Enterprise Fund.......................... 413,525 - 413,525 (2) Osgood Hill Enterprise Fund................... 46,460 - 46,460 (2) Total.................................................. $ 1,548,828 $ 49,825 $ 1,598,653 (1) Budgeted transfers to the general fund from other available funds. Also, transfers to and from nonmajor and municipal capital project funds. (2) Budgeted transfers to the general fund for indirect costs. NOTE 6— LEASES Operating Lease The Town entered into a commercial lease for office space for the Schools Business Office that expires July 31, 2015. The future minimum lease payments are as follows: Governmental Years Ending June 30, Activities 2015...................................................... $ 91,098 2016...................................................... 91,098 Total...................................................... $ 182,196 Town of North Andover, Massachusetts 52 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 NOTE 7 -SHORT-TERM FINANCING Short-term debt may be authorized and issued to fund the following: • Current operating costs prior to the collection of revenues through issuance of revenue or tax anticipation notes (RANS or TANS). • Capital project costs and other approved expenditures incurred prior to obtaining permanent financing through issuance of bond anticipation notes (BANS)or grant anticipation notes (GANS). Short-term loans are general obligations and carry maturity dates that are limited by statute. Interest expenditures and expenses for short-term borrowings are accounted for in the general fund and enterprise funds, respectively. Details related to the short-term debt activity for the year ended June 30, 2014, are as follows: Rate Beginning Ending Type Purpose (%) Due Date Balance Additions Reductions Balance BAN School design services....... 0.55 6/27/2014 $ 359,000 $ - $ 359,000 $ - BAN Facilities master plan......... 0.45 6/18/2015 - 660,000 - 660,000 Total......................................... $ 359,000 $ 660,000 $ 359,000 $ 660,000 NOTE 8 - LONG-TERM DEBT State law permits the Town, under the provisions of Chapter 44, Section 10, to authorize indebtedness up to a limit of 5% of its equalized valuation. Debt issued in accordance with this section of the law is designated as being "inside the debt limit." In addition, however, a Town may authorize debt in excess of that limit for specific purposes. Such debt, when issued, is designated as being 'outside the debt limit." In order to take advantage of favorable interest rates, the Town issued $4,210,000 of general obligation refunding bonds on July 9, 2013. The proceeds of the refunding bonds were used to complete a current refunding of existing debt. The refunded bonds totaled $4,370,000 and became callable on July 15, 2013. As a result of the transaction, the refunded bonds were paid down on the call date and the liability has been removed from the statement of net position. The transaction resulted in an economic gain of$424,435 and a reduction of$489,914 in future debt service payments. There was no difference between the face value of the debt refunded and the reacquisition price. Town of North Andover, Massachusetts 53 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 Details related to the outstanding indebtedness at June 30, 2014, and the debt service requirements are as follows: Bonds Payable-Governmental Funds Original Interest Maturities Loan Rate Beginning Ending Project Through Amount (%) Balance Additions Reductions Balance Municipal Purpose Loan of 2004................... 2016 12,705,555 2.00-5.00 1,763,894 1,408,396 355,498 Municipal Purpose Loan of 2005................... 2025 8,205,261 3.00-4.00 2,916,751 2,834,864 81,887 High School Construction............................ 2026 3,000,000 3.30-5.00 1,950,000 1,950,000 - Municipal Purpose Loan of 2007................... 2016 406,805 3.60-4.50 119,850 39,950 79,900 Municipal Purpose Loan of 2008................... 2028 1,486,026 4.00-4.40 728,811 124,443 604,368 Land Acquisition-Refunding....................... 2018 2,960,000 3.00-4.00 1,590,000 295,000 1,295,000 Municipal Purpose Loan of 2008-Refunding.. 2019 9,540,000 3.00-4.00 5,255,000 930,000 4,325,000 Municipal Purpose Loan of 2009................... 2029 7,122,134 2.75-5.00 4,809,197 579,655 4,229,542 Municipal Purpose Loan of 2010................... 2029 4,171,222 2.25-4.00 3,186,800 326,800 2,860,000 Municipal Purpose Loan of 2011................... 2021 4,365,353 2.00-3.75 3,360,000 502,500 2,857,500 Municipal Purpose Loan of 2012................... 2029 3,255,348 2.00-2.50 2,882,302 364,700 2,517,602 Municipal Purpose Loan of 2013................... 2022 926,199 2.00-3.00 926,199 179,089 747,110 Municipal Purpose Loan of 2014-Refunding.. 2026 4,010,000 2.00-3.25 - 4,010,000 - 4,010,000 Municipal Purpose Loan of 2014................... 2034 8,181,497 2.00-3.25 - 8,181,497 - 8,181,497 Sub-total.................................................. 29,488,804 12,191,497 9,535,397 32,144,904 Unamortized premium................................ - 362,095 - 362,095 Total governmental bonds payable................ $ 29,488,804 $ 12,553,592 $ 9,535,397 $ 32,506,999 Debt service requirements for principal and interest for Governmental bonds payable in future years are as follows: Year Principal Interest Total 2015.......... $ 4,583,965 $ 977,907 $ 5,561,872 2016.......... 4,219,670 840,238 5,059,908 2017.......... 4,053,720 717,220 4,770,940 2018.......... 3,858,052 587,871 4,445,923 2019.......... 2,283,249 476,197 2,759,446 2020.......... 1,663,918 404,518 2,068,436 2021.......... 1,623,918 353,886 1,977,804 2022.......... 1,266,418 310,468 1,576,886 2023.......... 1,208,400 273,268 1,481,668 2024.......... 1,213,399 237,131 1,450,530 2025.......... 1,125,399 199,777 1,325,176 2026.......... 920,399 165,697 1,086,096 2027.......... 785,399 136,899 922,298 2028.......... 769,000 109,900 878,900 2029.......... 754,998 83,675 838,673 2030.......... 350,000 58,113 408,113 2031.......... 355,000 47,613 402,613 2032.......... 365,000 36,075 401,075 2033.......... 370,000 24,213 394,213 2034.......... 375,000 12,188 387,188 Totals........ $ 32,144,904 $ 6,052,854 $ 38,197,758 Town of North Andover, Massachusetts 54 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 Bonds Payable-Water Enterprise Fund Original Interest Maturities Loan Rate Beginning Ending Project Through Amount N Balance Additions Reductions Balance Municipal Purpose Loan of 2003................... 2015 $ 4,401,970 2.30-4.00 $ 275,805 $ $ 139,903 $ 135,902 Municipal Purpose Loan of 2004-Refunding.. 2016 985,438 2.00-4.20 291,105 101,606 189,499 Municipal Purpose Loan of 2005................... 2016 2,942,000 3.00-4.00 666,189 422,987 243,202 Municipal Purpose Loan of 2007................... 2016 815,000 3.60-4.50 244,500 81,500 163,000 MCWT.................................................... 2028 5,532,288 2.00 4,355,739 251,505 4,104,234 Municipal Purpose Loan of 2008................... 2018 1,000,000 3.70-5.0 0 500,000 100,000 400,000 Municipal Purpose Loan of 2008-Refunding.. 2018 1,888,108 3.00-4.00 200,000 40,000 160,000 Municipal Purpose Loan of 2009................... 2019 450,000 2.75-5.00 270,000 45,000 225,000 Municipal Purpose Loan of 2010................... 2030 2,025,000 2.25-4.00 1,638,200 128,200 1,510,000 Municipal Purpose Loan of 2011................... 2021 225,000 2.00-3.75 180,000 22,500 157,500 Municipal Purpose Loan of 2012................... 2022 1,175,000 2.00-2.50 1,057,500 117,500 940,000 Municipal Purpose Loan of 2013................... 2022 795,000 2.00-3.00 795,000 87,110 707,890 Municipal Purpose Loan of 2014-Refunding.. 2016 119,056 2.00-3.25 - 119,056 - 119,056 Municipal Purpose Loan of 2014................... 2024 267,191 2.00-3.25 - 267,191 - 267,191 Total Water Enterprise bonds payable........... $ 10,474,038 $ 386,247 $ 1,537,811 $ 9,322,474 Debt service requirements for principal and interest for Water Enterprise fund bonds and notes payable in future years are as follows: Year Principal Interest Total 2015.......... $ 1,464,699 $ 235,854 $ 1,700,553 2016.......... 1,090,276 192,003 1,282,279 2017.......... 860,037 162,634 1,022,671 2018.......... 860,432 139,129 999,561 2019.......... 721,074 115,857 836,931 2020.......... 627,255 98,111 725,366 2021.......... 607,983 84,023 692,006 2022.......... 591,328 70,943 662,271 2023.......... 388,108 57,973 446,081 2024.......... 394,191 49,064 443,255 2025.......... 378,397 39,708 418,105 2026.......... 384,729 30,777 415,506 2027.......... 391,188 21,717 412,905 2028.......... 397,777 12,528 410,305 2029.......... 65,000 6,600 71,600 2030.......... 100,000 4,000 104,000 Totals........ $ 9,322,474 $ 1,320,920 $ 10,643,394 Town of North Andover, Massachusetts 55 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 Bonds Payable-Sewer Enterprise Fund Original Interest Maturities Loan Rate Beginning Ending Project Through Amount N Balance Additions Reductions Balance MCWT..................................................... 2021 $ 7,356,555 3.70-5.40 $ 3,077,862 $ $ 500,582 $ 2,577,280 Municipal Purpose Loan of 2003.................... 2018 4,091,216 2.30-3.70 1,249,193 1,215,098 34,095 Municipal Purpose Loan of 2005.................... 2016 1,979,739 3.00-4.00 442,056 282,145 159,911 Municipal Purpose Loan of 2007.................... 2016 720,000 3.60-4.50 280,650 93,550 187,100 Municipal Purpose Loan of 2008.................... 2028 3,925,290 3.70-5.00 3,061,191 205,557 2,855,634 Municipal Purpose Loan of 2008-Refunding... 2019 1,156,892 3.00-4.00 570,801 110,345 460,456 Municipal Purpose Loan of 2010.................... 2022 3,830,001 2.75-5.00 2,540,002 320,001 2,220,001 Municipal Purpose Loan of 2010-Refunding... 2020 250,000 2.25-3.50 175,000 25,000 150,000 Municipal Purpose Loan of 2012.................... 2022 78,000 2.00-2.50 70,200 7,800 62,400 Municipal Purpose Loan of 2013-Refunding... 2018 1,145,000 2.00-3.00 1,145,000 245,001 899,999 Municipal Purpose Loan of 2014-Refunding... 2016 80,944 2.00-3.25 - 80,944 - 80,944 Total Sewer Enterprise bonds payable........... $ 12,611,955 $ 80,944 $ 3,005,079 $ 9,687,820 Debt service requirements for principal and interest for Sewer Enterprise fund bonds and notes payable in future years are as follows: Year Principal Interest Total 2015.......... $ 1,775,434 $ 363,110 $ 2,138,544 2016.......... 1,425,280 301,680 1,726,960 2017.......... 1,138,300 249,910 1,388,210 2018.......... 1,153,970 204,507 1,358,477 2019.......... 963,635 159,617 1,123,252 2020.......... 902,399 121,888 1,024,287 2021.......... 652,400 90,247 742,647 2022.......... 502,399 68,867 571,266 2023.......... 209,600 50,327 259,927 2024.......... 204,601 41,681 246,282 2025.......... 204,601 62,986 267,587 2026.......... 194,601 24,290 218,891 2027.......... 189,601 15,776 205,377 2028.......... 170,999 7,481 178,480 Totals........ $ 9,687,820 $ 1,762,367 $ 11,450,187 The Sewer Enterprise Fund is scheduled to be subsidized by the Massachusetts Clean Water Trust (MCWT)on a periodic basis for principal in the amount of$678,103 and interest costs of$319,824. Thus, net MCWT loan repayments, including interest, are scheduled to be $1,979,811. The principal subsidies are guaranteed and therefore a $678,103 intergovernmental receivable has been reported in the proprietary fund financial statements. Since the Town is legally obligated for the total amount of the debt, such amounts have been recorded in the accompanying basic financial statements. The 2014 principal and interest subsidies totaled $99,687 and $98,213, respectively. The Commonwealth has approved school construction assistance. The assistance program, which is administered by the Massachusetts School Building Authority, provides resources for future debt service of general obligation school bonds outstanding. During year 2014, $412,000 of such assistance was received. Approximately$412,000 will be received in future years. Of this amount, $13,000 represents reimbursement of long-term interest costs, and $399,000 represents reimbursement of approved construction costs. Accordingly, a $399,000 intergovernmental receivable and corresponding unavailable revenue have been reported in the governmental fund financial statements. The unavailable revenue has been recognized as revenue in the conversion to the government-wide financial statements. Town of North Andover, Massachusetts 56 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 The Town is subject to various debt limits by statute and may issue additional general obligation debt under the normal debt limit. At June 30, 2014, the Town had the following authorized and unissued debt. Purpose Amount Revenue billing system........................................ $ 75,000 Energy efficiency improvements to buildings............. 1,049,027 Total................................................................ $ 1,124,027 Changes in Long-term Liabilities During the year ended June 30, 2014, the following changes occurred in long-term liabilities: Beginning Ending Due within Balance Additions Reductions Balance One Year Governmental Activities: Long-term bonds.......................... $ 29,488,804 $ 12,191,497 $ (9,535,397) $ 32,144,904 $ 4,583,965 Unamortized premium................... - 362,095 - 362,095 50,458 Bonds payable, net....................... 29,488,804 12,553,592 (9,535,397) 32,506,999 4,634,423 Other postemployment benefits....... 36,757,389 8,195,353 (2,627,845) 42,324,897 - Compensated absences................ 1,576,000 823,000 (925,000) 1,474,000 804,000 Total governmental....................... $ 67,822,193 $ 21,571,945 $ (13,088,242) $ 76,305,896 $ 5,438,423 Beginning Ending Due within Balance Additions Reductions Balance One Year Business-Type Activities: Long-term bonds.......................... $ 23,085,993 $ 467,191 $ (4,542,890) $ 19,010,294 $ 3,240,133 Other postemployment benefits....... 1,657,859 238,403 (76,444) 1,819,818 - Compensated absences................ 91,000 56,000 (57,000) 90,000 57,000 Total business-type...................... $ 24,834,852 $ 761,594 $ (4,676,334) $ 20,920,112 $ 3,297,133 The governmental activities long-term liabilities are generally liquidated by the general fund and the business-type activities long-term liabilities are generally liquidated by the applicable enterprise fund. NOTE 9—GOVERNMENTAL FUND BALANCE CLASSIFICATIONS GASB 54 provides for two major types of fund balances, which are nonspendable and spendable. Nonspendable fund balances are balances that cannot be spent because they are not expected to be converted to cash or they are legally or contractually required to remain intact. Examples of this classification are prepaid items, inventories, and principal (corpus)of an endowment fund. The Town has reported principal portions of endowment funds as nonspendable. In addition to the nonspendable fund balance, GASB 54 has provided a hierarchy of spendable fund balances, based on a hierarchy of spending constraints. • Restricted: fund balances that are constrained by external parties, constitutional provisions, or enabling legislation. Town of North Andover, Massachusetts 57 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 • Committed: fund balances that contain self-imposed constraints of the government from its highest level of decision making authority. • Assigned: fund balances that contain self-imposed constraints of the government to be used for a particular purpose. • Unassigned: fund balance of the general fund that is not constrained for any particular purpose Massachusetts General Law Ch.40 §5B allows for the establishment of stabilization funds for one or more different purposes. The creation of a fund requires a two-thirds vote of the legislative body and must clearly define the purpose of the fund. Any change to the purpose of the fund along with any additions to or appropriations from the fund requires a two-thirds vote of the legislative body. At year end the balance of the general stabilization fund, and capital stabilization fund was $3,555,225, and $239,417, respectively. Both stabilization funds are reported as unassigned fund balance within the general fund. The Town has classified its fund balances with the following hierarchy. Municipal Nonmajor Total Community Capital Governmental Governmental General Preservation Projects Funds Funds FUND BALANCES Nonspendable: Permanent fund principal......................... $ $ $ $ 29,215 $ 29,215 Restricted for: Municipal federal and state grants.............. 109,984 109,984 Education federal and state grants............. 7,753 7,753 Receipts reserved for appropriations.......... 132,739 132,739 Municipal revolving funds......................... 514,733 514,733 Education revolving funds........................ 205,836 205,836 School lunch funds................................. 31,782 31,782 Other special revenue funds..................... 856,670 856,670 Affordable housing trust fund.................... 974,271 974,271 Other trust funds.................................... 75,365 75,365 Education capital projects........................ 150,627 150,627 Other permanent funds............................ 735,384 735,384 Debt service.......................................... 762,324 - 762,324 CPA fund.............................................. - 6,784,648 6,784,648 Municipal capital projects......................... - - 3,441,753 3,441,753 Assigned to: Encumbrances: General government............................... 11,008 - 11,008 Public safety.......................................... 48,806 48,806 Education............................................. 36,005 36,005 Public works.......................................... 160,897 160,897 Human and human services..................... 2,402 2,402 Culture and recreation............................. 1,014 1,014 Support services.................................... 104,130 104,130 Employee benefits.................................. 2,224 2,224 Unassigned............................................... 8,981,055 - 8,981,055 TOTAL FUND BALANCES..................................$ 10,109,865 $ 6,784,648 $ 3,441,753 $ 3,824,359 $ 24,160,625 Town of North Andover, Massachusetts 58 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 NOTE 10 - RISK FINANCING The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the Town carries commercial insurance. The Town participates in a premium-based workers' compensation plan for its active and retired employees. The amount of claim settlements has not exceeded insurance coverage in any of the three preceding years. Health Insurance In 2013 the Town joined the Commonwealth of Massachusetts' group insurance plan which is a premium based health insurance plan. Since that time the internal service fund has accounted for residual health insurance claims. As of June 30, 2014, there was no remaining liability for incurred but not reported claims; changes in the reported liability since July 1, 2012, are as follows: Current Year Balance at Claims and Beginning of Changes in Claims Balance at Year Estimate Payments Year-End Year 2013................... $ 518,000 $ 12,356,000 $ (12,188,000) $ 686,000 Year 2014................... 686,000 6,968,000 (7,654,000) - NOTE 11 -PENSION PLAN Plan Description-The Town contributes to the Essex Regional Retirement System (the "System"), a cost sharing multiple-employer defined benefit pension plan administered by the Essex County Retirement Board. School teachers and certain administrators are members of the Commonwealth of Massachusetts' Teachers Retirement System, to which the Town does not contribute. All pension benefits and expenses paid by the Teachers Retirement System are funded by the Commonwealth of Massachusetts (the "Commonwealth"). The amount of these on-behalf payments totaled $7,395,089 for the year ended June 30, 2014, and accordingly are reported in the general fund as intergovernmental revenues and pension benefit expenditures. The System provides retirement, disability and death benefits to plan members and beneficiaries. Chapter 32 of the MGL assigns authority to establish and amend benefit provisions of the plan. Cost-of-living adjustments granted between 1981 and 1997 and any increase in other benefits imposed by the Commonwealth's state law during those years are borne by the Commonwealth and are deposited into the pension fund. Cost-of-living adjustments granted after 1997 must be approved by the System and are borne by the System. The System issues a publicly available financial report in accordance with guidelines established by the Commonwealth's Public Employee Retirement Administration Commission. That report may be obtained by contacting the System located at 36 Federal Street, Salem, Massachusetts, 01970. Funding Policy- Plan members are required to contribute to the System at rates ranging from 5% to 11% of annual covered compensation. The Town is required to pay into the System its share of the system-wide actuarial determined contribution, which is apportioned among the employers based on active current payroll. The contributions of plan members and the Town are governed by Chapter 32 of the MGL. The Town's contributions to the System for the years ended June 30, 2014, 2013, and 2012 totaled $3,442,269, $3,186,990, and $3,002,374, respectively, which equaled its required contribution for each year. Town of North Andover, Massachusetts 59 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 The schedule of funding progress, presented as required supplementary information, following the notes to the basic financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Additionally, the schedule of employer contributions, presented as required supplementary information, following the notes to the basic financial statements, presents multiyear trend information for required and actual contributions relating to the cost- sharing plan as a whole, of which the Town is one participating employer, as well as the Town's proportionate share of the plan's annual contributions. This information is designed to be helpful for understanding the scale of the information presented relative to the Town. NOTE 12— POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS Plan Description—The Town of North Andover administers a single-employer defined benefit healthcare plan (the "Retiree Health Plan"). The plan provides lifetime healthcare insurance for eligible retirees and their spouses through the Town's group health insurance plan, which covers both active and retired members. Chapter 32B of the MGL assigns authority to establish and amend benefit provisions of the plan. Benefit provisions are negotiated between the Town and the unions representing Town employees and are renegotiated each bargaining period. The Retiree Health Plan does not issue a publicly available financial report. Funding Policy—Contribution requirements are also negotiated between the Town and union representatives. The required contribution is based on a pay-as-you-go financing requirement. The Town contributes a variable portion of the cost of current-year premiums, which varies by plan, for eligible retired plan members and their spouses. Plan members receiving benefits contribute the remaining portion of their premium costs. For 2014, the Town contributed $2.7 million to the plan. Annual OPEB Cost and Net OPEB Obligation—The Town's annual other postemployment benefit (OPEB)cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities (or funding excess)over a period not to exceed thirty years. The components of the Town's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the Town's net OPEB obligation are summarized in the following table: Annual required contribution........................................ $ 8,342,451 Interest on net OPEB obligation.................................... 1,728,686 Adjustment to annual required contribution..................... (1,637,381) Annual OPEB Cost(expense)...................................... 8,433,756 Contributions made.................................................... (2,704,289) Increase in net OPEB obligation................................... 5,729,467 Net OPEB obligation- beginning of year......................... 38,415,248 Net OPEB obligation-end of year................................. $ 44,144,715 Town of North Andover, Massachusetts 60 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 The Town's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2014 and the two preceding years was as follows: Percentage of Year Annual Annual OPEB Net OPEB Ended OPEB Cost Cost Contributed Obligation 6/30/2014 $ 8,433,756 32% $ 44,144,715 6/30/2013 10,748,052 30% 38,415,248 6/30/2012 12,196,334 34% 30,919,382 Funded Status and Funding Progress—As of July 1, 2013 the actuarial accrued liability for benefits was $86.6 million, all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $44 million, and the ratio of the UAAL to the covered payroll was 197 percent. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions—Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members)and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the July 1, 2013 actuarial valuation, actuarial liabilities were determined using the projected unit credit cost method. The actuarial assumptions included a 4.5% investment return assumption, which is based on the expected yield on the assets of the Town, calculated based on the funded level of the plan at the valuation date, a 3% inflation rate assumption, and an annual health care trend rate of 9% initially, graded to 5% over 8 years. The UAAL is being amortized with a level percentage of pay over a 30 year period on an open basis. The remaining amortization period at June 30, 2014 is 30 years. NOTE 13—COMMITMENTS The Town has entered into, or is planning to enter into, contracts related to energy efficiency improvements for Town buildings totaling approximately$1 million. Town of North Andover, Massachusetts 61 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 NOTE 14—CONTINGENCIES The Town participates in a number of Federal award programs. These programs are subject to financial and compliance audits. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the Town expects such amounts, if any, to be immaterial. Various legal actions and claims are pending against the Town. Litigation is subject to many uncertainties, and the outcome of individual litigated matters is not always predictable. Although the amount of liability, if any, at June 30, 2014, cannot be ascertained, management believes any resulting liability should not materially affect the financial position of the Town at June 30, 2014. NOTE 15— IMPLEMENTATION OF NEW GASB PRONOUNCEMENTS During 2014, the following GASB pronouncements were implemented: • GASB Statement#65, Items Previously Reported as Assets and Liabilities. Financial statement changes include the presentation of deferred outflows and inflows in the Statement of Net Position and Balance Sheet. Notes to the basic financial statements were changed to provide additional disclosure on deferred outflows of resources and deferred inflows of resources. • GASB Statement#70, Accounting and Financial Reporting for Nonexchange Financial Guarantees. The implementation of this pronouncement did not impact the basic financial statements. The following GASB pronouncements will be implemented in future years: • The GASB issued Statement#67, Financial Reporting for Pension Plans, which is required to be implemented in 2015. • The GASB issued Statement#68, Accounting and Financial Reporting for Pensions, which is required to be implemented in 2015. • The GASB issued Statement#69, Government Combinations and Disposals of Government Operations, which is required to be implemented in 2015. • The GASB issued Statement#71, Pension Transition for Contributions Made Subsequent to the Measurement Date, which is required to be implemented simultaneously with GASB Statement#68 in 2015. Management is currently assessing the impact the implementation of these pronouncements will have on the basic financial statements. Except as discussed below, management does not expect that these new GASB statements will have a significant effect on the basic financial statements. GASB Statements#67 and#68 will substantially change the reporting for pension liabilities and expenses. Certain changes in pension liabilities will be immediately recognized and reported as pension expense or reported as deferred outflows/inflows of resources depending on the nature of the changes. Substantial changes to methods and assumptions used to determine information for GAAP reporting purposes will be required. Current actuarial methods may continue to be used to determine future amounts. Town of North Andover, Massachusetts 62 Comprehensive Annual Financial Report Required Supplementary Information Town of North Andover, Massachusetts 63 Comprehensive Annual Financial Report GENERALFUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL YEAR ENDED JUNE 30,2014 Budgeted Amounts Amounts Current Year Carried forward Initial Original Final From Prior Year Budget Budget Budget REVENUES: Real estate and personal property taxes, net of tax refunds................................................. $ $ 62,877,694 $ 62,877,694 $ 62,877,694 Taxliens................................................................ - - - Payments in lieu of taxes.......................................... 1,815,270 1,815,270 1,815,270 Motor vehicle and other excise taxes........................... 4,074,139 4,074,139 4,074,139 Charges for services................................................ 863,833 863,833 863,833 Penalties and interest on taxes................................... 251,326 251,326 251,326 Licenses and permits................................................ 230,962 230,962 230,962 Fines and forfeitures................................................ 121,444 121,444 121,444 Intergovernmental.................................................... 9,994,141 9,994,141 9,994,141 Departmental and other............................................ 1,130,682 1,130,682 1,130,682 Investment income................................................... 118,400 118,400 118,400 TOTAL REVENUES......................................... 81,477,891 81,477,891 81,477,891 EXPENDITURES: Current: General government............................................ 2,462 2,195,833 2,198,295 2,202,056 Public safety....................................................... 26,461 9,735,131 9,761,592 9,761,592 Education.......................................................... 29,149 40,122,915 40,152,064 40,144,270 Public works....................................................... 67,423 4,114,638 4,182,061 4,762,484 Health and human services................................... 4,962 1,161,872 1,166,834 1,132,834 Culture and recreation.......................................... 776 863,687 864,463 864,463 Support services................................................. 37,756 1,347,294 1,385,050 1,385,050 Pension benefits.................................................. - 3,442,269 3,442,269 3,442,269 Property and liability insurance............................... - 377,612 377,612 301,405 Employee benefits............................................... 5,000 12,211,811 12,216,811 11,801,353 State and county charges.......................................... - 1,102,112 1,102,112 1,102,112 Debt service: Principal............................................................ 5,427,568 5,427,568 5,366,746 Interest.............................................................. 947,622 947,622 957,719 TOTAL EXPENDITURES.................................. 173,989 83,050,364 83,224,353 83,224,353 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES............................................ (173,989) (1,572,473) (1,746,462) (1,746,462) OTHER FINANCING SOURCES(USES): Premium from issuance of bonds................................ - - - Transfers in............................................................ 1,542,762 1,542,762 1,542,762 TOTAL OTHER FINANCING SOURCES(USES)... 1,542,762 1,542,762 1,542,762 NET CHANGE IN FUND BALANCE................................. (173,989) (29,711) (203,700) (203,700) BUDGETARY FUND BALANCE,Beginning ofyear............. 5,006,938 5,006,938 5,006,938 BUDGETARY FUND BALANCE,End of year..................... $ (173,989) $ 4,977,227 $ 4,803,238 $ 4,803,238 See notes to required supplementary information. Town of North Andover, Massachusetts 64 Comprehensive Annual Financial Report Actual Amounts Variance Budgetary Carried Forward To Final Amounts To Next Year Budget $ 62,611,049 $ $ (266,645) 594,247 594,247 1,867,019 51,749 4,866,192 792,053 958,291 94,458 578,989 327,663 268,696 37,734 105,671 (15,773) 10,194,366 200,225 1,338,043 207,361 121,627 3,227 83,504,190 2,026,299 2,111,312 11,008 79,736 9,351,264 48,806 361,522 40,092,434 36,005 15,831 4,508,698 160,897 92,889 1,084,887 2,402 45,545 861,157 1,014 2,292 1,239,502 104,130 41,418 3,442,269 - - 301,405 - - 11,599,341 2,224 199,788 1,254,988 - (152,876) 5,366,746 957,719 - - 82,171,722 366,486 686,145 1,332,468 (366,486) 2,712,444 143,149 143,149 1,543,373 611 1,686,522 143,760 3,018,990 (366,486) 2,856,204 5,006,938 - $ 8,025,928 $ (366,486) $ 2,856,204 Town of North Andover, Massachusetts 65 Comprehensive Annual Financial Report Retirement System Schedules of Funding Progress and Employer Contributions The Retirement System Schedule of Funding Progress presents multiyear trend information about whether the actuarial value of planned assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. The Retirement System Schedule of Employer Contributions presents multiyear trend information for required and actual contributions relating to the cost-sharing plan as a whole, of which the Town is one participating employer, as well as the Town's proportionate share of the plan's annual contributions. Town of North Andover, Massachusetts 66 Comprehensive Annual Financial Report ESSEX REGIONAL RETIREMENT SYSTEM SCHEDULE OF FUNDING PROGRESS Actuarial UAAL as a Actuarial Accrued Unfunded Percentage Actuarial Value of Liability(AAL) AAL Funded Covered of Covered Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll Date (A) (B) (B-A) (A/B) (C) ((B-A)/C) 01/01/13 $ 314,565,925 $ 619,339,080 $ 304,773,155 50.8% $ 119,292,287 255.5% 01/01/11 278,332,006 536,115,536 257,783,530 51.9% 119,707,156 215.3% 01/01/08 301,420,965 445,171,554 143,750,589 67.7% 111,726,856 128.7% 01/01/06 261,327,047 376,034,621 114,707,574 69.5% 98,641,094 116.3% 01/01/04 229,852,971 333,396,222 103,543,251 68.9% 93,404,002 110.9% 01/01/02 218,346,198 287,390,715 69,044,517 76.0% 85,005,338 81.2% 01/01/00 190,363,700 253,847,100 63,483,400 75.0% 69,525,900 91.3% 01/01/99 180,034,700 268,386,000 88,351,300 67.1% 89,645,300 98.6% The Town's share of the UAAL, as of January 1, 2013 is approximately 14%or$42.7 million. See notes to required supplementary information. Town of North Andover, Massachusetts 67 Comprehensive Annual Financial Report ESSEX REGIONAL RETIREMENT SYSTEM SCHEDULE OF EMPLOYER CONTRIBUTIONS System Wide Town of North Andover (B/A) Year Annual (A) (B) Town's Percentage Ended Required Actual Percentage Actual of System Wide June 30 Contributions Contributions Contributed Contributions Actual Contributions 2014 $ 24,110,012 $ 24,110,012 100% $ 3,442,269 14.3% 2013 22,770,925 22,770,925 100% 3,186,990 14.0% 2012 21,084,190 21,084,190 100% 3,002,374 14.2% 2011 19,093,942 19,093,942 100% 2,803,785 14.7% 2010 17,648,487 17,648,487 100% 2,596,530 14.7% 2009 15,601,671 15,601,671 100% 2,468,667 15.8% 2008 15,788,864 15,788,864 100% 2,261,142 14.3% 2007 16,622,274 16,622,274 100% 2,227,020 13.4% 2006 13,080,011 13,080,011 100% 2,181,588 16.7% 2005 12,223,776 12,223,776 100% 1,946,329 15.9% 2004 12,516,569 12,516,569 100% 1,693,461 13.5% The Town's Actual Contributions equaled 100%of its Required Contributions for each year presented. See notes to required supplementary information. Town of North Andover, Massachusetts 68 Comprehensive Annual Financial Report Other Postemployment Benefit Plan Schedules The Schedule of Funding progress compares, over time, the actuarial accrued liability for benefits with the actuarial value of accumulated plan assets. The Schedule of Employer Contributions compares, overtime, the annual required contributions to the actual contributions made. The Schedule of Actuarial Methods and Assumptions presents factors that significantly affect the identification of trends in the amounts reported. Town of North Andover, Massachusetts 69 Comprehensive Annual Financial Report OTHER POSTEMPLOYMENT BENEFIT PLAN SCHEDULE OF FUNDING PROGRESS AND SCHEDULE OF EMPLOYER CONTRIBUTIONS Schedule of Funding Progress Actuarial Accrued UAAL as a Actuarial Liability(AAL) Unfunded Percentage Actuarial Value of Projected AAL Funded Covered of Covered Valuation Assets Unit Credit (UAAL) Ratio Payroll Payroll Date (A) (B) (B-A) (A/B) (C) ((B-A)/C) 07/01/13 $ - $ 86,605,373 $ 86,605,373 0.0% $ 43,951,748 197.0% 07/01/12 - 100,068,844 100,068,844 0.0% 41,265,503 242.5% 07/01/10 - 118,595,377 118,595,377 0.0% 39,329,676 301.5% 07/01/08 - 125,963,157 125,963,157 0.0% 39,189,469 321.4% Schedule of Employer Contributions Annual Actual Year Required Contributions Percentage Ended Contribution Made Contributed 6/30/14 $ 8,342,451 $ 2,704,289 32.4% 6/30/13 10,674,564 4,184,956 39.2% 6/30/12 12,141,886 4,184,956 34.5% 6/30/11 12,441,414 3,839,408 30.9% 6/30/10 11,241,110 4,346,876 38.7% 6/30/09 10,964,622 3,978,109 36.3% The Town implemented GASB Statement No. 45 for the year ended June 30, 2009. Information for prior years is not available. See notes to required supplementary information. Town of North Andover, Massachusetts 70 Comprehensive Annual Financial Report OTHER POSTEMPLOYMENT BENEFIT PLAN ACTUARIAL METHODS AND ASSUMPTIONS Actuarial Methods: Valuation date................................................... July 1, 2013 Actuarial cost method......................................... Projected Unit Credit Amortization method.......................................... Level percentage of pay over thirty years based on an open group. Remaining amortization period............................. 30 years, open basis Actuarial Assumptions: Investment rate of return..................................... 4.5% Inflation rate assumption..................................... 3.0% Medical/drug cost trend rate................................. 9.0% graded to 5.0% over 8 years Plan Membership: Current retirees, beneficiaries, and dependents....... 380 Current active members...................................... 747 Total............................................................... 1,127 See notes to required supplementary information. Town of North Andover, Massachusetts 71 Comprehensive Annual Financial Report Notes to Required Supplementary Information Year Ended June 30, 2014 NOTE A-STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY 1. Budgetary Information Municipal Law requires the Town to adopt a balanced budget that is approved by Town Meeting. The Finance Committee presents an annual budget to Town Meeting, which includes estimates of revenues and other financing sources and recommendations of expenditures and other financing uses. Town Meeting, which has full authority to amend and/or reject the budget or any individual line item, adopts the expenditure budget by majority vote. Increases or transfers between departments subsequent to the approval of the annual budget, requires majority Town Meeting approval via a supplemental appropriation. The majority of the Town's appropriations are non-continuing which lapse at the end of each year. Others are continuing appropriations for which the governing body has authorized that an unspent balance from a prior year be carried forward and made available for spending in the current year. These carry forwards are included as part of the subsequent year's original budget. Generally, expenditures may not exceed the legal level of spending authorized for an appropriation account. However, the Town is statutorily required to pay debt service, regardless of whether such amounts are appropriated. Additionally, expenditures for disasters, natural or otherwise, and final judgments may exceed the level of spending authorized by majority vote of the Town Meeting. The Town adopts an annual budget for the general fund in conformity with the guidelines described above. The original 2014 approved budget for the general fund authorized $83.2 million in appropriations and other amounts to be raised. The Town Accountant's office has the responsibility to ensure that budgetary control is maintained on an individual line item appropriation account basis. Budgetary control is exercised through the Town's accounting system. 2. Budgetary- GAAP Reconciliation For budgetary financial reporting purposes, the Uniform Municipal Accounting System basis of accounting (established by the Commonwealth of Massachusetts) is followed, which differs from the GAAP basis of accounting. A reconciliation of budgetary-basis to GAAP-basis results for the general fund for the year ended June 30, 2014, is presented below: Net change in fund balance- budgetary basis.............................................. $ 3,018,990 Perspective difference: Activity of the stabilization funds recorded in the general fund for GAAP......................................................................... 21,077 Basis of accounting differences: Net change in recording 60 day receipts................................................... (208,832) Net change in recording tax refunds payable............................................. (410,000) Recognition of revenue for on-behalf payments.......................................... 7,395,089 Recognition of expenditures for on-behalf payments.................................... (7,395,089) Net change in fund balance- GAAP basis................................................... $ 2,421,235 Town of North Andover, Massachusetts 72 Comprehensive Annual Financial Report Notes to Required Supplementary Information Year Ended June 30, 2014 NOTE B— PENSION PLAN The Town contributes to the System, a cost-sharing multiple-employer defined benefit pension plan administered by the Essex Regional Retirement System. Substantially all employees are members of the System, except for public school teachers and certain administrators who are members of the Massachusetts Teachers Retirement System, to which the Town does not contribute. Pension benefits and administrative expenses paid by the Teachers Retirement Board are the legal responsibility of the Commonwealth. The amount of these on-behalf payments totaled $7,395,089 for the year ended June 30, 2014, and, accordingly, are reported in the general fund as intergovernmental revenues and pension expenditures. The System provides retirement, disability and death benefits to plan members and beneficiaries. Chapter 32 of the MGL assigns authority to establish and amend benefit provisions of the plan. Cost-of-living adjustments granted between 1981 and 1997 and any increase in other benefits imposed by the Commonwealth's state law during those years are borne by the Commonwealth and are deposited into the pension fund. Cost-of-living adjustments granted after 1997 must be approved by the Andover Contributory Retirement Board and are borne by the System. Plan members are required to contribute to the System at rates ranging from 5% to 11% of annual covered compensation. The Town is required to pay into the System its share of the system-wide actuarial determined contribution, which is apportioned among the employers based on active current payroll. The contributions of plan members and the Town are governed by Chapter 32 of the MGL. The Town's contributions to the System for the years ended June 30, 2014, 2013, and 2012 totaled $3,442,269, $3,186,990, and $3,002,374, respectively, which equaled its required contribution for each year. The following actuarial methods and assumptions were used in the Retirement System's most recent actuarial valuation: Actuarial Methods and Assumptions: Valuation Date.....................................January 1, 2013 Actuarial Cost Method...........................Entry Age Normal Cost Method Amortization Method.............................Approximate level percent of payroll closed Remaining Amortization Period...............21 years for the fresh start base Asset Valuation Method.........................A five-year(20% per year)smoothing method that reflects differences between expected market asset return and actual market return Actuarial Assumptions: Investment rate of return......................8.00% Projected salary increases................... 3.75% per annum (ultimate rate) Cost of living adjustments.................... 3.0% of first$13,000 of retirement income Plan Membership: Retired, disabled and beneficiaries receiving benefits........................................ 1,670 Inactive participants................................................................................................ 1,009 Active participants..................................................................................... 2,816 Total....................................................................................................... 5,495 Town of North Andover, Massachusetts 73 Comprehensive Annual Financial Report Notes to Required Supplementary Information Year Ended June 30, 2014 The schedule of funding progress presents multiyear trend information relating to the cost-sharing plan as a whole, of which the Town is one participating employer, about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Additionally, the schedule of employer contributions presents multiyear trend information for required and actual contributions relating to the cost-sharing plan as a whole, of which the Town is one participating employer, as well as the Town's proportionate share of the plan's annual contributions. This information is designed to be helpful for understanding the scale of the information presented relative to the Town. NOTE C—OTHER POSTEMPLOYMENT BENEFITS PLAN The Town administers a single-employer defined benefit healthcare plan ("The Retiree Health Plan"). The plan provides lifetime healthcare insurance for eligible retirees and their spouses through the Town's group health insurance plan, which covers both active and retired members. Additionally, retired teachers and their spouses receive health insurance through the Group Insurance Commission of the Commonwealth of Massachusetts (GIC). Each participating municipality is assessed for the governmental share of health and life insurance premiums paid on behalf of its teacher retirees by the state. The Town currently finances its other postemployment benefits (OPEB)on a pay-as-you-go basis. As a result, the funded ratio (actuarial value of assets expressed as a percentage of the actuarial accrued liability) is 0%. In accordance with Governmental Accounting Standards, the Town has recorded its OPEB cost equal to the actuarially determined annual required contribution (ARC)which includes the normal cost of providing benefits for the year and a component for the amortization of the total unfunded actuarial accrued liability of the plan. The Schedule of Funding Progress presents multi-year trend information which compares, over time, the actuarial accrued liability for benefits with the actuarial value of accumulated plan assets. The Schedule of Employer Contributions compares, overtime, the annual required contributions to the actual contributions made. Projections of benefits for financial reporting purposes are based on the substantive plan and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The Schedule of Actuarial Methods and Assumptions presents factors that significantly affect the identification of trends in the amounts reported. Town of North Andover, Massachusetts 74 Comprehensive Annual Financial Report Combining and Individual Fund Statements Town of North Andover, Massachusetts 75 Comprehensive Annual Financial Report Nonmajor Governmental Funds Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Municipal Federal and State Grants—This fund is used to account for grant funds received from state and federal governments which are designated for specific non-school related programs. Education Federal and State Grants—This fund is used to account for grant funds received from state and federal governments which are designated for specific education related programs. Receipts Reserved for Appropriation—This fund is used to account for receipts from a specific revenue source that by law is accounted for separately from the general fund and must be spent by appropriation. Municipal Revolving Funds—This fund is used to account for various municipal department's revolving funds established in accordance with MGL Chapter 44, Section 53E 'h and other applicable statutes. Education Revolving Funds—This fund is used to account for the school department's revolving funds established in accordance with MGL Chapter 44, Section 53E 'h and Chapter 71. School Lunch Funds—This fund is used to account for all cafeteria activities and is funded by user charges, federal and state grants, and commodities received. Other Special Revenue Funds—This fund is used to account for the activity of donated funds, gifts, and public safety details. Affordable Housing Trust Fund—This fund is used to account for activities relating to the preservation and creation of affordable housing in the Town. Other Trust Funds—This fund is used to account for activities of conservation and public safety trust funds. Capital Projects Funds Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. Education Capital Projects—This fund is used to account for the acquisition of school related capital assets that are funded through both appropriations and borrowings. Town of North Andover, Massachusetts 76 Comprehensive Annual Financial Report Permanent Funds Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support governmental programs. Permanent Funds Principal—This fund is used to account for all non-library related gifts, bequests and contributions for which only earnings may be expended to benefit the Town. Library Permanent Funds—This fund is used to account for gifts, bequests and contributions held for which only earnings may be expended for purposes specified by the donor in relation to library activities. Town of North Andover, Massachusetts 77 Comprehensive Annual Financial Report NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30,2014 Special Revenue Funds Municipal Education Receipts Municipal Federal and Federal and Reserved for Revolving State Grants State Grants Appropriation Funds ASSETS Cash and cash equivalents................................ $ 112,516 $ 22,323 $ 132,739 $ 532,581 Investments.................................................... - - - - Receivables, net of uncollectibles: Departmental and other................................ - 43,326 Intergovernmental........................................ - 462,527 - TOTAL ASSETS............................................. $ 112,516 $ 484,850 $ 132,739 $ 575,907 LIABILITIES Warrants payable........................................ $ 2,532 $ 9,405 $ - $ 17,848 Accrued payroll........................................... - 137,632 - Due to other funds....................................... - 330,060 - TOTAL LIABILITIES......................................... 2,532 477,097 17,848 DEFERRED INFLOWS OF RESOURCES Unavailable revenues................................... - - 43,326 FUND BALANCES Nonspendable............................................ - - - - Restricted.................................................. 109,984 7,753 132,739 514,733 TOTAL FUND BALANCES................................ 109,984 7,753 132,739 514,733 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES,AND FUND BALANCES........... $ 112,516 $ 484,850 $ 132,739 $ 575,907 Town of North Andover, Massachusetts 78 Comprehensive Annual Financial Report Special Revenue Funds Education School Other Affordable Other Revolving Lunch Special Revenue Housing Trust Funds Funds Funds Trust Fund Funds Subtotal $ 326,513 $ 49,803 $ 863,541 $ 974,271 $ 75,365 $ 3,089,652 43,326 - - - - - 462,527 $ 326,513 $ 49,803 $ 863,541 $ 974,271 $ 75,365 $ 3,595,505 $ 54,569 $ 6,617 $ 6,871 $ $ $ 97,842 66,108 11,404 - 215,144 - - - 330,060 120,677 18,021 6,871 643,046 - - - 43,326 205,836 31,782 856,670 974,271 75,365 2,909,133 205,836 31,782 856,670 974,271 75,365 2,909,133 $ 326,513 $ 49,803 $ 863,541 $ 974,271 $ 75,365 $ 3,595,505 (Continued) Town of North Andover, Massachusetts 79 Comprehensive Annual Financial Report NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30,2014 Capital Project Funds Permanent Funds Total Education Permanent Library Nonmajor Capital Funds Permanent Governmental Projects Principal Funds Subtotal Funds ASSETS Cash and cash equivalents.............................. $ 150,627 $ 29,215 $ 356,517 $ 385,732 $ 3,626,011 Investments.................................................. - - 378,867 378,867 378,867 Receivables, net of uncollectibles: Departmental and other............................... - - 43,326 Intergovernmental...................................... - - - - 462,527 TOTAL ASSETS............................................ $ 150,627 $ 29,215 $ 735,384 $ 764,599 $ 4,510,731 LIABILITIES Warrants payable....................................... $ - $ - $ - $ - $ 97,842 Accrued payroll......................................... 215,144 Due to other funds..................................... 330,060 TOTAL LIABILITIES....................................... 643,046 DEFERRED INFLOWS OF RESOURCES Unavailable revenues................................. 43,326 FUND BALANCES Nonspendable........................................... - 29,215 - 29,215 29,215 Restricted................................................. 150,627 - 735,384 735,384 3,795,144 TOTAL FUND BALANCES.............................. 150,627 29,215 735,384 764,599 3,824,359 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES,AND FUND BALANCES......... $ 150,627 $ 29,215 $ 735,384 $ 764,599 $ 4,510,731 (Concluded) Town of North Andover, Massachusetts 80 Comprehensive Annual Financial Report This page intentionally left blank. Town of North Andover, Massachusetts 81 Comprehensive Annual Financial Report NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30,2014 Special Revenue Funds Municipal Education Receipts Municipal Federal and Federal and Reserved for Revolving State Grants State Grants Appropriation Funds REVENUES: Payments in lieu of taxes............................................ $ $ $ $ Charges for services....................................................... 568,984 Licenses and permits................................................. 41,597 95,935 Intergovernmental..................................................... 186,353 2,964,074 - - Departmental and other.............................................. - - 7,411 Contributions............................................................ - 386,620 Investment income.................................................... 10 - - TOTAL REVENUES........................................... 186,363 2,964,074 41,597 1,058,950 EXPENDITURES: Current: General government.............................................. 12,981 - 59,950 16,061 Public safety......................................................... 105,449 - - 546,279 Education............................................................ - 3,006,638 - Public works......................................................... 4,496 - 5,691 Human services.................................................... 43,985 407,185 Culture and recreation............................................ 56,394 - - TOTAL EXPENDITURES.................................... 223,305 3,006,638 59,950 975,216 EXCESS(DEFICIENCY)OF REVENUES OVER(UNDER)EXPENDITURES............................... (36,942) (42,564) (18,353) 83,734 OTHER FINANCING SOURCES(USES): Issuance of bonds and notes....................................... - Transfers in.............................................................. Transfers out............................................................ (5,455) TOTAL OTHER FINANCING SOURCES(USES)..... (5,455) NET CHANGE IN FUND BALANCES............................... (36,942) (42,564) (18,353) 78,279 FUND BALANCES AT BEGINNING OF YEAR.................... 146,926 50,317 151,092 436,454 FUND BALANCES AT END OF YEAR.............................. $ 109,984 $ 7,753 $ 132,739 $ 514,733 Town of North Andover, Massachusetts 82 Comprehensive Annual Financial Report Special Revenue Funds Education School Other Affordable Other Revolving Lunch Special Revenue Housing Trust Funds Funds Funds Trust Fund Funds Sub-total $ - $ - $ 141,001 $ $ $ 141,001 2,218,589 1,127,012 15,500 3,930,085 295,856 - - 433,388 - 90,488 40,153 3,281,068 6,000 - 25,000 - 38,411 137,098 - 224,395 - - 748,113 - 4 - 6,424 101 6,539 2,657,543 1,127,016 471,384 31,424 40,254 8,578,605 - - 8,852 114,461 - 212,305 - - 9,135 - 25,493 686,356 2,568,617 1,118,876 6,528 - 6,700,659 - - 57,741 67,928 32,399 483,569 - - 62,502 - - 118,896 2,568,617 1,118,876 177,157 114,461 25,493 8,269,713 88,926 8,140 294,227 (83,037) 14,761 308,892 (62,700) (141,336) (209,491) (62,700) (141,336) (209,491) 26,226 8,140 152,891 (83,037) 14,761 99,401 179,610 23,642 703,779 1,057,308 60,604 2,809,732 $ 205,836 $ 31,782 $ 856,670 $ 974,271 $ 75,365 $ 2,909,133 (Continued) Town of North Andover, Massachusetts 83 Comprehensive Annual Financial Report NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30,2014 Capital Project Funds Permanent Funds Total Education Permanent Library Nonmajor Capital Funds Permanent Governmental Projects Principal Funds Sub-total Funds REVENUES: Payments in lieu of taxes..............................................$ $ $ $ $ 141,001 Charges for services.................................................... 3,930,085 Licenses and permits................................................... 433,388 Intergovernmental....................................................... 30,932 3,312,000 Departmental and other................................................ - 38,411 Contributions.............................................................. 9,457 9,457 757,570 Investment income...................................................... - 15 56,234 56,249 62,788 TOTAL REVENUES............................................ 30,932 15 65,691 65,706 8,675,243 EXPENDITURES: Current: General government................................................ - - - - 212,305 Public safety........................................................... - 686,356 Education.............................................................. 109,205 6,809,864 Public works........................................................... - 67,928 Human services...................................................... - - 483,569 Culture and recreation.............................................. 38,369 38,369 157,265 TOTAL EXPENDITURES...................................... 109,205 - 38,369 38,369 8,417,287 EXCESS(DEFICIENCY)OF REVENUES OVER(UNDER)EXPENDITURES................................. (78,273) 15 27,322 27,337 257,956 OTHER FINANCING SOURCES(USES): Issuance of bonds and notes......................................... 219,822 - - - 219,822 Transfers in............................................................... 49,825 49,825 Transfers out.............................................................. (50,436) (259,927) TOTAL OTHER FINANCING SOURCES(USES)......, 219,211 - - - 9,720 NET CHANGE IN FUND BALANCES................................. 140,938 15 27,322 27,337 267,676 FUND BALANCES AT BEGINNING OF YEAR..................... 9,689 29,200 708,062 737,262 3,556,683 FUND BALANCES AT END OF YEAR................................$ 150,627 $ 29,215 $ 735,384 $ 764,599 $ 3,824,359 (Concluded) Town of North Andover, Massachusetts 84 Comprehensive Annual Financial Report Agency Fund This fund is used to account for assets held by the Town in a trustee capacity or as an agent for individuals, private organizations, and other governmental units. The majority of the assets in the agency fund relate to conservation, highway and planning board bid deposits as well as student activity deposits. Town of North Andover, Massachusetts 85 Comprehensive Annual Financial Report AGENCYFUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES YEAR ENDED JUNE 30, 2014 Beginning End of Year Additions Deletions of Year ASSETS CURRENT: Cash and cash equivalents................... $ 4,178,183 $ 4,338,281 $ (4,358,126) $ 4,158,338 LIABILITIES Guaranteed deposits........................... $ 3,612,190 $ 2,450,034 (2,559,642) $ 3,502,582 Other deposits.................................... 359,357 171,352 (146,871) 383,838 Student Activities................................ 206,636 1,716,895 (1,651,613) 271,918 TOTAL LIABILITIES................................$ 4,178,183 $ 4,338,281 $ (4,358,126) $ 4,158,338 Town of North Andover, Massachusetts 86 Comprehensive Annual Financial Report Statistics Section �j i M k ;f ���:. �1wi'�ViYpnyl%o�bD�ll�i ry �f f t l�rr�Kr : North Andover Historical Society Courtesy of Brenda Tomasz Statistical Section This part of the comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Town's overall financial health. Financial Trends • These schedules contain trend information to help the reader understand how the Town's financial performance and well-being have changed over time. Revenue Capacity • These schedules contain information to help the reader assess the Town's most significant local revenue source, the property tax. Debt Capacity • These schedules present information to help the reader assess the affordability of the Town's current levels of outstanding debt and the Town's ability to issue additional debt in the future. Demographic and Economic Information • These schedules offer demographic and economic indicators to help the reader understand the environment within which the Town's financial activities take place. Operating Information • These schedules contain service and infrastructure data to help the reader understand how the information in the Town's financial report relates to the services the Town provides and the activities it performs. SOURCES: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The Town implemented GASB Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year. Town of North Andover, Massachusetts 87 Comprehensive Annual Financial Report Net Positions By Component Last Ten Years Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Governmental activities Net investment in capital assets..............................$ 83,953,156 $ 88,197,300 $ 96,211,743 $ 98,468,392 $ 98,988,296 $ 100,868,439 $ 102,754,256 $ 105,155,466 $ 106,453,985 $ 106,117,880 Restricted.......................................................... 1,406,105 3,923,673 5,327,670 8,491,986 8,753,852 6,539,198 7,574,263 8,225,177 8,207,148 9,444,583 Unrestricted........................................................ 16,746,454 12,820,381 9,472,994 8,427,511 3,498,800 (2,610,402) (11,696,666) (17,137,468) (20,131,341) (20,876,449) Total governmental activities net position......................... $ 102,105,715 $ 104,941,354 $ 111,012,407 $ 115,387,889 $ 111,240,948 $ 104,797,235 $ 98,631,853 $ 96,243,175 $ 94,529,792 $ 94,686,014 Business-type activities Net investment in capital assets.............................. 18,706,981 22,554,318 28,849,317 29,977,126 32,209,814 32,898,415 36,443,088 37,264,739 40,243,610 42,012,200 Unrestricted........................................................ 8,257,052 7,087,365 2,407,297 3,278,409 1,616,637 3,608,473 2,479,721 4,418,053 4,273,747 5,533,117 Total business-type activities net position.........................$ 26,964,033 $ 29,641,683 $ 31,256,614 $ 33,255,535 $ 33,826,451 $ 36,506,888 $ 38,922,809 $ 41,682,792 $ 44,517,357 $ 47,545,317 Primary government Net investment in capital assets.............................. 102,660,137 110,751,618 125,061,060 128,445,518 131,198,110 133,766,854 139,197,344 142,420,205 146,697,595 148,130,080 Restricted.......................................................... 1,406,105 3,923,673 5,327,670 8,491,986 8,753,852 6,539,198 7,574,263 8,225,177 8,207,148 9,444,583 Unrestricted........................................................ 25,003,506 19,907,746 11,880,291 11,705,920 5,115,437 998,071 (9,216,945) (12,719,415) (15,857,594) (15,343,332) Total primary government net position............................. $ 129,069,748 $ 134,583,037 $ 142,269,021 $ 148,643,424 $ 145,067,399 $ 141,304,123 $ 137,554,662 $ 137,925,967 $ 139,047,149 $ 142,231,331 Town of North Andover, Massachusetts 88 Comprehensive Annual Financial Report Changes in Net Positions Last Ten Years Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Expenses Governmental activities: General government............................................... $ 2,622,386 $ 2,779,374 $ 3,299,710 $ 3,531,917 $ 4,123,262 $ 4,021,067 $ 4,559,013 $ 3,794,618 $ 3,665,170 $ 3,685,321 Public safety......................................................... 11,147,327 12,011,224 12,241,105 12,929,068 14,509,962 14,654,536 15,134,400 14,825,939 15,017,342 15,242,286 Education............................................................. 46,457,274 50,523,956 52,015,222 57,679,448 64,495,293 66,409,142 70,860,920 69,540,668 70,340,318 70,591,546 Public works.......................................................... 6,566,414 4,466,922 5,496,347 6,097,048 7,382,073 6,227,974 6,485,227 5,715,405 6,963,935 6,719,915 Health and human services...................................... 1,491,158 1,617,246 1,697,653 1,766,854 2,041,742 2,054,742 2,080,778 2,146,195 2,162,118 2,228,573 Culture and recreation............................................. 2,172,150 2,494,159 1,931,878 1,953,619 2,052,225 2,109,924 2,192,035 2,015,651 1,679,351 1,453,223 Support services.................................................... - - - - - - - 1,266,046 1,281,204 1,444,333 Interest................................................................ 3,264,870 3,636,270 2,720,892 2,178,255 1,202,891 1,506,325 1,370,287 1,354,251 1,192,955 1,025,900 Total government activities expenses................................. 73,721,579 77,529,151 79,402,807 86,136,209 95,807,448 96,983,710 102,682,660 100,658,773 102,302,393 102,391,097 Business-type activities: Water................................................................... 2,761,393 2,946,719 2,929,823 3,222,251 3,591,641 2,972,303 3,188,559 3,180,102 3,033,371 3,200,373 Sewer.................................................................. 2,822,651 3,076,592 3,418,575 3,423,734 3,878,647 3,644,464 3,877,585 3,572,401 3,517,562 3,238,708 Osgood Hill........................................................... 416,628 502,926 515,640 474,413 381,463 259,595 325,092 295,606 332,189 344,001 Total business-type activities expenses.............................. 6,000,672 6,526,237 6,864,038 7,120,398 7,851,751 6,876,362 7,391,236 7,048,109 6,883,122 6,783,082 Total primary government expenses.................................. $ 79,722,251 $ 84,055,388 $ 86,266,845 $ 93,256,607 $ 103,659,199 $ 103,860,072 $ 110,073,896 $ 107,706,882 $ 109,185,515 $ 109,174,179 Program Revenues Governmental activities: Public safety charges for services.............................. $ 2,402,044 $ 3,527,254 $ 2,609,422 $ 3,028,126 $ 2,682,759 $ 2,266,216 $ 2,536,254 $ 2,851,539 $ 2,798,269 $ 2,495,472 Education charges for services................................. 2,355,214 2,366,543 2,137,410 3,328,079 3,204,499 3,229,655 3,165,842 3,443,280 3,409,555 3,648,664 Other charges for services....................................... 1,762,520 1,689,807 1,699,407 982,438 670,781 716,819 862,199 875,080 767,042 866,165 Education operating grants and contributions............... 10,275,091 10,938,343 12,305,566 13,281,265 14,454,951 15,206,781 17,480,918 16,720,192 17,289,331 17,983,068 Other operating grants and contributions..................... 2,641,334 1,878,664 1,854,031 3,213,290 2,048,360 1,241,709 1,372,095 1,489,093 1,302,947 1,010,960 Education government capital grant and contributions.... 34,618,264 - 2,985,922 - - - - 960,154 696,209 30,932 Public works capital grant and contributions................. 399,865 86,308 287,274 975,861 2,235,219 455,022 1,026,557 - 1,449,134 949,933 Other capital grant and contributions.......................... - - - - 7,792 - 829,740 579,896 411,518 826,907 Total government activities program revenues...................... 54,454,332 20,486,919 23,879,032 24,809,059 25,304,361 23,116,202 27,273,605 26,919,234 28,124,005 27,812,101 Business-type activities: Water charges for services....................................... 4,217,638 5,267,016 5,174,840 5,670,444 4,541,749 5,327,867 5,750,569 5,436,873 5,387,685 5,237,290 Sewer charges for services...................................... 3,937,143 3,536,767 3,425,722 3,873,561 4,294,388 4,682,139 4,797,301 5,015,808 4,964,813 4,945,962 Osgood Hill charges for services............................... 426,494 507,693 471,173 257,694 193,103 285,188 239,200 280,068 335,770 337,551 Other operating grants and contributions..................... 272,260 414,429 227,214 252,266 201,398 177,861 141,724 234,388 127,545 122,529 Total business-type activities program revenues................... 8,853,535 9,725,905 9,298,949 10,053,965 9,230,638 10,473,055 10,928,794 10,967,137 10,815,813 10,643,332 Total primary government program revenues....................... $ 63,307,867 $ 30,212,824 $ 33,177,981 $ 34,863,024 $ 34,534,999 $ 33,589,257 $ 38,202,399 $ 37,886,371 $ 38,939,818 $ 38,455,433 Net(Expense)/Program Revenue Governmental activities................................................... $ (19,267,247) $ (57,042,232) $ (55,523,775) $ (61,327,150) $ (70,503,087) $ (73,867,508) $ (75,409,055) $ (73,739,539) $ (74,178,388) $ (74,578,996) Business-type activities................................................... 2,852,863 3,199,668 2,434,911 2,933,567 1,378,887 3,596,693 3,537,558 3,919,028 3,932,691 3,860,250 Total primary government net(expense)/program revenue...... $ (16,414,384) $ (53,842,564) $ (53,088,864) $ (58,393,583) $ (69,124,200) $ (70,270,815) $ (71,871,497) $ (69,820,511) $ (70,245,697) $ (70,718,746) (Continued) Town of North Andover, Massachusetts 89 Comprehensive Annual Financial Report Changes in Net Positions Last Ten Years Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General Revenues and other Changes in Net Positions Governmental activities: Real estate and personal property taxes, net of tax refunds payable....................................... $ 45,446,613 $ 47,687,495 $ 49,146,112 $ 52,131,731 $ 54,443,171 $ 55,855,205 $ 57,726,043 $ 60,060,304 $ 60,284,114 $ 62,195,623 Tax liens............................................................... 342,485 365,140 290,057 293,055 85,265 908,371 576,219 355,176 401,204 570,085 Motor vehicle and other excise taxes.......................... 3,829,751 4,076,385 3,432,710 4,148,303 4,033,853 3,165,811 3,748,360 3,923,189 4,462,710 4,673,160 Penalties and interest on taxes................................. 230,649 410,394 305,539 292,512 307,534 277,662 223,861 258,471 316,019 501,903 Payment in lieu of taxes........................................... 1,291,432 1,441,209 1,623,750 1,704,677 1,815,176 1,838,821 1,867,094 1,903,510 1,974,424 2,008,020 Community preservation surcharge............................ 1,076,634 1,196,950 1,249,235 1,240,697 511,703 1,263,566 1,312,401 1,363,553 1,390,831 1,433,013 Grants and contributions not restricted to specific programs................................................. 3,345,265 3,297,899 3,589,640 4,071,414 3,847,997 2,748,904 2,222,543 2,133,066 2,338,662 2,279,506 Unrestricted investment income................................. 367,927 880,381 1,136,035 888,152 504,476 449,199 445,515 194,547 198,915 241,618 Miscellaneous........................................................ - - 1,770 - - - - - - - Transfers.............................................................. 896,724 522,018 819,980 931,091 807,971 916,256 1,121,637 1,159,045 1,098,126 832,290 Total governmental activities............................................ 56,827,480 59,877,871 61,594,828 65,701,632 66,357,146 67,423,795 69,243,673 71,350,861 72,465,005 74,735,218 Business-type activities: Transfers.............................................................. (896,724) (522,018) (819,980) (931,091) (807,971) (916,256) (1,121,637) (1,159,045) (1,098,126) (832,290) Total primary government general revenues and other changes in net positions.......................................... $ 55,930,756 $ 59,355,853 $ 60,774,848 $ 64,770,541 $ 65,549,175 $ 66,507,539 $ 68,122,036 $ 70,191,816 $ 71,366,879 $ 73,902,928 Changes in Net Position Governmental activities................................................... $ 37,560,233 $ 2,835,639 $ 6,071,053 $ 4,374,482 $ (4,145,941) $ (6,443,713) $ (6,165,382) $ (2,388,678) $ (1,713,383) $ 156,222 Business-type activities................................................... 1,956,139 2,677,650 1,614,931 2,002,476 570,916 2,680,437 2,415,921 2,759,983 2,834,565 3,027,960 Total primary government changes in net positions............... $ 39,516,372 $ 5,513,289 $ 7,685,984 $ 6,376,958 $ (3,575,025) $ (3,763,276) $ (3,749,461) $ 371,305 $ 1,121,182 $ 3,184,182 * In 2012,the Town consolidated support services into a separate functional line-item. Prior to 2012,support services were blended within the general government functional line-item. (Concluded) Town of North Andover, Massachusetts 90 Comprehensive Annual Financial Report Fund Balances,Governmental Funds Last Ten Years Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General Fund Reserved.. $ 275,028 $ 1,015,945 $ 1,670,515 $ 1,927,584 $ 1,422,665 $ 1,369,510 $ $ $ $ Unreserved.................................. 3,477,419 4,590,078 2,799,586 1,684,514 168,993 658,689 Restricted.. 1,033,892 964,966 896,040 762,324 Assigned..................................... 184,314 411,861 173,989 366,486 Unassigned................................. 3,455,866 5,412,549 6,618,601 8,981,055 Total general fund............................. $ 3,752,447 $ 5,606,023 $ 4,470,101 $ 3,612,098 $ 1,591,658 $ 2,028,199 $ 4,674,072 $ 6,789,376 $ 7,688,630 $ 10,109,865 All Other Governmental Funds Reserved.. $ 457,221 $ 426,777 $ 584,112 $ 1,619,701 $ 29,028 $ 29,111 $ - $ - $ - $ - Unreserved,reported in: Special revenue funds.. 2,209,480 4,201,047 5,607,342 6,917,728 9,953,042 9,055,517 Capital projects funds.. (30,799,369) (5,833,628) 3,369,779 1,532,240 2,107,039 3,163,123 Permanent funds.. 382,071 426,611 533,644 531,528 447,756 459,616 - - - - Nonspendable.............................. 29,134 29,184 29,200 29,215 Restricted.. 10,315,497 11,714,886 9,705,816 14,021,545 Unassigned................................. (193,926) - Total all other governmental funds........ $ (27,750,597) $ (779,193) $ 10,094,877 $ 10,601,197 $ 12,536,865 $ 12,707,367 $ 10,344,631 $ 11,744,070 $ 9,541,090 $ 14,050,760 The Town implemented GASB 54 in year 2011,fund balances prior to year 2011 have been reported in the pre-GASB 54 format. Town of North Andover, Massachusetts 91 Comprehensive Annual Financial Report Changes in Fund Balances,Governmental Funds Last Ten Years Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Revenues: Real estate and personal property taxes, net of tax refunds................................................ $ 45,008,746 $ 47,835,561 $ 48,777,621 $ 51,648,818 $ 54,496,257 $ 56,703,210 $ 57,423,755 $ 59,803,225 $ 60,311,614 $ 61,992,217 Motor vehicle and other excise taxes........................... 3,784,239 4,010,270 3,477,581 4,068,018 3,727,728 3,515,205 3,790,515 3,917,020 4,260,419 4,866,192 Intergovernmental................................................... 16,886,075 43,747,281 30,272,942 30,502,211 20,016,089 19,834,322 21,826,135 22,241,592 22,474,244 22,294,860 Departmental and other............................................ 9,665,052 11,055,480 10,020,527 11,396,570 11,108,856 10,602,746 11,104,508 11,466,482 11,500,455 12,439,870 Interest income....................................................... 472,635 1,004,421 1,343,385 1,062,356 521,278 516,898 445,515 194,547 198,915 241,618 Total Revenue................................................ 75,816,747 107,653,013 93,892,056 98,677,973 89,870,208 91,172,381 94,590,428 97,622,866 98,745,647 101,834,757 Expenditures: General government................................................ 3,461,227 2,437,000 4,255,964 3,262,011 2,949,377 2,710,315 3,102,753 2,864,390 2,317,174 5,850,866 Public safety.......................................................... 9,633,069 9,131,365 9,209,888 10,619,206 12,133,006 11,844,721 13,085,968 9,430,923 10,115,031 10,317,017 Education.............................................................. 40,003,409 37,593,675 37,410,950 42,270,522 45,280,664 44,325,754 46,382,790 45,775,410 48,191,658 46,902,298 Public works.......................................................... 6,210,568 3,107,989 4,577,335 6,541,888 6,238,578 5,669,065 5,405,654 5,409,310 6,024,483 6,189,779 Health and human services....................................... 970,184 1,096,011 1,098,927 1,182,780 1,664,490 1,363,830 1,347,082 1,428,586 1,462,526 1,568,456 Culture and recreation.............................................. 4,497,161 2,006,980 1,468,542 1,544,228 1,642,496 3,903,682 2,325,296 2,212,683 2,995,960 2,139,225 Support services..................................................... - - - - - - - 1,039,174 1,101,281 1,342,321 Pension benefits..................................................... 6,048,643 6,544,692 7,212,850 7,978,462 8,632,667 8,959,530 9,537,508 9,969,374 10,452,145 10,837,358 Property and liability insurance................................... 338,998 340,145 415,406 322,592 321,675 294,085 276,258 271,059 290,896 301,405 Employee benefits................................................... 6,411,883 6,842,992 7,957,488 8,890,836 9,389,284 7,636,441 9,415,481 11,100,080 11,250,204 11,599,341 State and county charges......................................... 1,239,139 1,508,576 2,170,566 2,200,498 2,267,181 2,307,758 2,115,484 1,813,511 1,788,615 1,254,988 Debt service: Principal............................................................ 5,792,801 5,784,931 6,588,374 6,094,566 6,362,702 5,348,471 5,574,681 5,995,123 5,219,330 5,366,746 Principal-current refunding................................... - - - - - - - - - 4,168,651 Interest.............................................................. 3,311,451 3,526,616 2,742,094 2,180,794 1,275,869 1,299,581 1,352,790 1,254,252 1,114,259 957,719 Total Expenditures.................................................. 87,918,533 79,920,972 85,108,384 93,088,383 98,157,989 95,663,233 99,921,745 98,563,875 102,323,562 108,796,170 Excess of revenues over(under)expenditures.............. (12,101,786) 27,732,041 8,783,672 5,589,590 (8,287,781) (4,490,852) (5,331,317) (941,009) (3,577,915) (6,961,413) Other Financing Sources(Uses) Issuance of bonds................................................... 11,205,261 495,000 129,000 1,486,026 7,122,134 4,171,222 4,365,353 3,255,348 926,199 8,181,497 Issuance of refunding bonds...................................... - - - 12,500,000 - - - - - 4,010,000 Premium from issuance of bonds................................ 527,918 75,921 3,726 12,615 202,338 10,417 127,464 41,359 24,215 143,149 Premium from issuance of refunding bonds.................. - - - 182,792 - - - - - 218,946 Payments to refunded bond escrow agent.................... - (21,053,797) - Sale of capital assets............................................... - - 1,770 - - - - - - - Transfers in........................................................... 1,656,438 1,687,539 1,393,334 2,555,701 1,100,814 3,121,748 1,322,517 1,819,046 1,556,007 1,598,653 Transfers out......................................................... (759,714) (1,165,521) (573,354) (1,624,610) (222,277) (2,205,492) (200,880) (660,001) (232,232) (259,927) Total other financing sources(uses)................................ 12,629,903 1,092,939 954,476 (5,941,273) 8,203,009 5,097,895 5,614,454 4,455,752 2,274,189 13,892,318 Net change in fund balance........................................... $ 528,117 $ 28,824,980 $ 9,738,148 $ (351,683) $ (84,772) 607,043 $ 283,137 $ 3,514,743 $ (1,303,726) $ 6,930,905 Debt service as a percentage of noncapita I expenditures..... 13.88% 13.80% 11.23% 9.23% 8.17% 7.49% 7.45% 7.71% 6.59% 6.44% In 2012,the Town consolidated support services into a separate functional line-item. Prior to 2012,support services were blended within the general government functional line-item. Town of North Andover, Massachusetts 92 Comprehensive Annual Financial Report Assessed Value and Actual Value of Taxable Property by Classification and Tax Rates Last Ten Years Assessed and Actual Values and Tax Rates Total Total Total Residential Residential Commercial Industrial Personal Commercial Commercial Direct Town Year Value Tax Rate Value Value Property Value Tax Rate Rate Value 2005 $ 3,437,798,500 $ 11.52 $ 239,818,629 $ 176,063,300 $ 77,626,380 $ 493,508,309 $ 12.59 $ 11.65 $ 3,931,306,809 2006 $ 3,743,701,112 $ 11.14 $ 240,357,988 $ 175,698,300 $ 81,016,630 $ 497,072,918 $ 13.47 $ 11.41 $ 4,240,774,030 2007 (1) $ 4,113,245,116 $ 10.45 $ 286,085,303 $ 174,371,400 $ 77,931,290 $ 538,387,993 $ 12.63 $ 10.70 $ 4,651,633,109 2008 $ 4,001,584,703 $ 11.40 $ 283,789,944 $ 167,088,600 $ 82,002,220 $ 532,880,764 $ 13.78 $ 11.68 $ 4,534,465,467 2009 $ 3,910,976,509 $ 11.76 $ 280,591,491 $ 163,741,100 $ 99,814,430 $ 544,147,021 $ 16.69 $ 12.36 $ 4,455,123,530 2010 (1) $ 3,670,178,348 $ 12.74 $ 286,494,949 $ 168,247,500 $ 108,138,260 $ 562,880,709 $ 17.69 $ 13.40 $ 4,233,059,057 2011 $ 3,563,558,199 $ 13.52 $ 283,140,851 $ 162,024,800 $ 112,827,760 $ 557,993,411 $ 18.63 $ 14.21 $ 4,121,551,610 2012 $ 3,586,332,274 $ 13.92 $ 278,839,111 $ 158,456,800 $ 121,400,010 $ 558,695,921 $ 19.16 $ 14.63 $ 4,145,028,195 2013 (1) $ 3,713,065,744 $ 13.72 $ 278,124,243 $ 161,446,600 $ 116,997,715 $ 556,568,558 $ 18.85 $ 14.39 $ 4,269,634,302 2014 $ 3,652,658,906 $ 14.41 $ 276,804,384 $ 155,524,200 $ 123,301,890 $ 555,630,474 $ 19.45 $ 15.08 $ 4,208,289,380 Total Assessed Value by Classification Total Assessed Value by Classification Year Ended June 30,2013 Year Ended June 30,2014 4%3% 3% 4% 0 ®Residential ®Commercial ❑Industrial ❑Personal Property ®Residential ®Commercial ❑Industrial -Personal Property Commercial Value as % of Total Value 18.0% 16.0% 14.0% 12.0% � � 10.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (1)Revaluation year. Source: Assessor's Department,Town of North Andover All property in the Commonwealth of Massachusetts is assessed at 100%of fair cash value. Note:Chapter 59,Section 21C of the Massachusetts General Laws,known as"Proposition 2 1/2",imposes 2 separate limits on the annual tax levy of the Town. The primary limitation is that the tax levy cannot exceed 2 1/2 percent of the full and fair cash value. The secondary limitation is that the tax levy cannot exceed the maximum levy limit for the preceding year as determined by the State Commissioner of Revenue by more than 2 1/2 percent,subject to an exception for property added to the tax rolls and for certain substantial valuation increases other than as part of a general revaluation. The secondary limit may be exceeded in any year by a majority vote of the voters,however it cannot exceed the primary limitation. Town of North Andover, Massachusetts 93 Comprehensive Annual Financial Report Principal Taxpayers Current Year and Nine Years Ago 2014 2005 Percentage of Percentage of Total Taxable Total Taxable Property Assessed Assessed Assessed Assessed Name Type Valuation Rank Value Valuation Rank Value AIMCO(Royal Crest) Apartments $ 53,771,450 1 1.30% $ 0.00% National Grid Utility $ 43,178,590 2 1.05% $ - 0.00% Edgewood Retirement Community Congregate Care/Nursing Home $ 37,808,040 3 0.92% $ 27,110,000 3 0.60% Mansur Investment Office/Manufacturing $ 22,716,500 4 0.55% $ - 0.00% Delta/Delta Realty Trust Shopping Mall $ 19,754,350 5 0.48% $ 15,640,700 6 0.35% O=y Properties Office $ 15,779,400 6 0.38% $ - 0.00% Wood Ridge Homes Co-op Housing $ 13,249,140 7 0.32% $ 10,881,500 7 0.24% RCG North Andover Mills Office $ 12,841,500 8 0.31% $ - 0.00% Eaglewood Properties Retail $ 9,234,200 9 0.22% $ 0.00% North Andover2004 Office $ 6,691,600 10 0.16% $ - 0.00% NAM Partners Limited Office/Manufacturing $ - $ 63,891,500 1 1.42% T.J.Flatley Co. Apartments $ $ 60,137,800 2 1.34% Lucent Technologies Manufacturing $ $ 25,207,800 4 0.56% Mass Electric Utility $ $ 4,033,700 10 0.09% Jefferson Equity Partners Office Par $ $ 19,836,900 5 0.44 BF No,Andover Office Park Office $ $ 9,763,400 8 0.22 D&L Andover Prop.LLC Office Park $ - $ 9,294,300 9 0.21 Totals $235,024,770 5.70% $245,797,600 5A7% Source: Official Statement for Sale of Bonds Town of North Andover, Massachusetts 94 Comprehensive Annual Financial Report Property Tax Levies and Collections Last Ten Years Percent of (2) Less (2) First Year Percent of Delinquent Total Total Tax Total Abatements& Net Current Net Levy Tax Tax Collections to Year Tax Levy Exemptions Tax Levy Tax Collections Collected Collections Collections Net Tax Levy 2005 $ 45,816,708 $ 392,122 $ 45,424,586 $ 44,793,849 98.61% $ 531,598 $ 45,325,447 99.78% 2006 $ 48,400,403 $ 590,643 $ 47,809,760 $ 47,500,514 99.35% $ 276,489 $ 47,777,003 99.93% 2007 (1) $ 49,783,252 $ 461,962 $ 49,321,290 $ 48,595,456 98.53% $ 629,957 $ 49,225,413 99.81% 2008 $ 52,961,163 $ 353,952 $ 52,607,211 $ 51,348,979 97.61% $ 981,309 $ 52,330,288 99.47% 2009 $ 55,074,898 $ 319,197 $ 54,755,701 $ 53,651,783 97.98% $ 675,917 $ 54,327,700 99.22% 2010 (1) $ 56,715,432 $ 371,669 $ 56,343,763 $ 55,671,800 98.81% $ 179,088 $ 55,850,888 99.13% 2011 $ 58,574,724 $ 316,384 $ 58,258,340 $ 57,441,580 98.60% $ 368,082 $ 57,809,662 99.23% 2012 $ 60,626,359 $ 459,973 $ 60,166,386 $ 59,454,694 98.82% $ 424,999 $ 59,879,693 99.52% 2013 (1) $ 61,434,579 $ 629,707 $ 60,804,872 $ 60,215,656 99.03% $ 174,857 $ 60,390,513 99.32% 2014 $ 63,441,828 $ 564,134 $ 62,877,693 $ 62,596,596 99.55% $ - $ 62,596,596 99.55% Real Estate Tax Levies vs.First Year Collections Last Ten Years 110,000,000 100,000,000 90,000,000 80,000,000 70,000,000 c 60,000,000 0 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (1)Revaluation year. (2)Includes tax liens. Source:Assessor's Department,Town of North Andover Town of North Andover, Massachusetts 95 Comprehensive Annual Financial Report Ratios of Outstanding Debt and General Bonded Debt Last Ten Years Governmental Activities General Percentage Percentage U.S.Census Personal Assessed Obligation Per of Personal of Assessed Year Population Income Value Bonds Capita Income Value 2005 27,025 $ 1,044,969,910 $ 3,931,306,809 $ 62,326,700 $ 2,306 5.96% 1.59% 2006 27,390 $ 1,080,264,953 $ 4,240,774,030 $ 57,036,769 $ 2,082 5.28% 1.34% 2007 27,412 $ 1,102,755,288 $ 4,651,633,109 $ 50,577,395 $ 1,845 4.59% 1.09% 2008 27,566 $ 1,131,129,553 $ 4,534,465,467 $ 38,148,855 $ 1,384 3.37% 0.84% 2009 27,753 $ 1,161,578,875 $ 4,455,123,530 $ 38,908,287 $ 1,402 3.35% 0.87% 2010 28,352 $ 1,210,382,515 $ 4,233,059,057 $ 37,731,038 $ 1,331 3.12% 0.89% 2011 28,352 $ 1,234,590,165 $ 4,121,551,610 $ 36,521,710 $ 1,288 2.96% 0.89% 2012 28,352 $ 1,259,281,969 $ 4,145,028,195 $ 33,781,935 $ 1,192 2.68% 0.81% 2013 28,352 $ 1,284,467,608 $ 4,269,634,302 $ 29,488,804 $ 1,040 2.30% 0.69% 2014 28,422 $ 1,339,386,750 $ 4,208,289,380 $ 32,144,904 $ 1,131 2.40% 0.76% Business-type Activities(1) Total Primary Government General Total Obligation Capital Net Debt Per Year Bonds Leases Outstanding Capita 2005 $ 33,332,542 $ - $ 95,659,242 $ 3,540 2006 $ 30,370,700 $ - $ 87,407,469 $ 3,191 2007 $ 30,818,817 $ - $ 81,396,212 $ 2,969 2008 $ 35,338,363 $ - $ 73,487,218 $ 2,666 2009 $ 32,424,871 $ - $ 71,333,158 $ 2,570 2010 $ 30,944,105 $ - $ 68,675,143 $ 2,422 2011 $ 27,115,434 $ - $ 63,637,144 $ 2,245 2012 $ 24,743,238 $ - $ 58,525,173 $ 2,064 2013 $ 23,085,993 $ - $ 52,574,797 $ 1,854 2014 $ 19,010,294 $ - $ 51,155,198 $ 1,800 (1)Water and Sewer Funds Source: Audited Financial Statements, U.S. Census, Division of Local Services Town of North Andover, Massachusetts 96 Comprehensive Annual Financial Report Direct and Overlapping Governmental Activities Debt As of June 30, 2014 Estimated Estimated Share of Debt Percentage Overlapping Town of North Andover, Massachusetts Outstanding Applicable Debt Debt repaid with property taxes Greater Lawrence Regional Vocational Technical School District... $ 21,855,000 0.8% $ 259,779 Greater Lawrence Sanitary District.......................................... 29,694,674 6.4% 1,655,000 Subtotal, overlapping debt.......................................................... 1,914,779 Town direct debt....................................................................... 32,144,904 Total direct and overlapping debt................................................. $ 34,059,683 Methodologies used to calculate overlapping debt: Greater Lawrence Regional Vocational Technical School District: The Town's overlap is based on pupil enrollment. Greater Lawrence Sanitary District: The Town's overlap is based on the percent of wastewater received by the District. Source: Official Statement for Sale of Bonds Note: Overlapping governments are those that coincide, at least in part, with geographic boundaries of the Town. This schedule estimates the portion of outstanding debt of those overlapping governments that is borne by the taxpayers of the town. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the property taxpayers should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. Town of North Andover, Massachusetts 97 Comprehensive Annual Financial Report Computation of Legal Debt Margin Last Ten Years Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Equalized Valuation................................. $ 4,010,449,200 $ 4,648,968,500 $ 4,648,968,500 $ 4,648,968,500 $ 4,913,038,200 $ 4,913,038,200 $ 4,460,344,100 $ 4,460,344,100 $ 4,446,186,000 $ 4,446,186,000 Debt Limit-5%of Equalized Valuation......... $ 200,522,460 $ 232,448,425 $ 232,448,425 $ 232,448,425 $ 245,651,910 $ 245,651,910 $ 223,017,205 $ 223,017,205 $ 222,309,300 $ 222,309,300 Less: Outstanding debt applicable to limit........... 56,138,372 52,713,614 48,332,581 44,809,719 45,804,952 44,477,844 45,590,789 35,050,079 30,545,849 33,116,011 Authorized and unissued debt.................. 41,577,757 13,747,450 7,993,738 12,765,223 10,111,025 3,391,000 6,688,916 1,970,568 182,659 1,124,027 Legal debt margin.................................... $ 102,806,331 $ 165,987,361 $ 176,122,106 $ 174,873,483 $ 189,735,933 $ 197,783,066 $ 170,737,500 $ 185,996,558 $ 191,580,792 $ 188,069,262 Total debt applicable to the limit as a percentage of debt limit.................... 48.73% 28.59% 24.23% 24.77% 22.76% 19.49% 23.44% 16.60% 13.82% 15.40% Source: Official Statement for Sale of Bonds Town of North Andover, Massachusetts 98 Comprehensive Annual Financial Report Demographic and Economic Statistics Last Ten Years Per Capita Population Personal Personal Median Unemployment Year Estimates Income Income Age Rate 2005 27,025 $ 1,044,969,910 $ 38,667 37 4.2% 2006 27,390 $ 1,080,264,953 $ 39,440 37 4.1% 2007 27,412 $ 1,102,755,288 $ 40,229 37 3.9% 2008 27,566 $ 1,131,129,553 $ 41,034 37 4.6% 2009 27,753 $ 1,161,578,875 $ 41,854 37 7.7% 2010 28,352 $ 1,210,382,515 $ 42,691 37 7.3% 2011 28,352 $ 1,234,590,165 $ 43,545 37 5.9% 2012 28,352 $ 1,259,281,969 $ 44,416 37 5.2% 2013 28,352 $ 1,284,467,608 $ 45,304 37 5.2% 2014 28,422 $ 1,339,386,750 $ 47,125 37 5.7% Source: Commonwealth of Mass, Division of Local Services, Executive Office of Labor and Workforce Development. Median age is based on most recent census data. Town of North Andover, Massachusetts 99 Comprehensive Annual Financial Report Principal Employers(excluding Town) Current Year and Nine Years Ago 2014 2005 Nature Percentage of Percentage of of Total Town Total Town Employer Business Employees Rank Employment Employees Rank Employment Merrimack College Higher Education 675 1 2% 450 4 2% Demoulas Supermarkets,Inc. Grocery Store 400 2 1% 230 9 1% Converse,Inc Shoe Manufacturing 350 3 1% n/a n/a n/a Edgewood Retirement Community Heathcare 345 4 1% n/a n/a n/a Watts Regulators Manufacturing 250 5 1% n/a n/a n/a National Grid(formely Mass Electic) Utility Services 225 6 1% 300 6 1% Lawrence Eagle Tribune Newspaper 205 7 1% 375 5 1% Brooks School Education 185 8 1% n/a n/a n/a Genesis Healthcare Healthcare 170 9 1% n/a n/a n/a Stop&Shop Grocery Store 150 10 1% n/a n/a n/a Lucent Technoligies Manufacturing n/a n/a n/a 500 3 2% Borden Chemical Chemical Manufacturing n/a n/a n/a 600 1 2% A.E.G Schneider Electronic Controls n/a n/a n/a 540 2 2% Sweetheart Plastics Plastics Manufacturing n/a n/a n/a 300 7 1% Morton International Inc Manufacturing n/a n/a n/a 250 8 1% Solectron Corp Contractor n/a n/a n/a 200 10 1% Source:Massachusetts Department of Workforce Development Town of North Andover, Massachusetts 100 Comprehensive Annual Financial Report Full-Time Equivalent Town Employees Last Ten Years Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Full-Time Equivalents Town................................................. 26 26 25 25 25 26 26 27 26 26 Public Safety....................................... 112 113 112 113 113 114 114 112 112 112 School................................................ 443 441 441 442 446 449 451 443 479 479 Public works........................................ 26 25 24 24 23 23 23 23 23 23 Community services.............................. 13 13 11 13 13 14 14 14 14 14 Support Services ................................. 2 2 3 4 4 4 8 9 9 9 Library................................................ 11 12 11 12 12 12 12 12 12 12 Total ................................................. 633 631 627 634 637 641 647 639 675 675 Source:Annual Budget Report, School Dept Town of North Andover, Massachusetts 101 Comprehensive Annual Financial Report Operating Indicators by Function/Program Last Ten Years Year Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General Government Population............................................................. 27,025 27,390 27,412 27,566 27,753 28,352 28,352 28,352 28,352 28,422 Registered Voters,Annual Town Election..................... 17,043 17,128 16,400 16,787 18,059 18,169 17,256 18,307 18,598 18,247 Town Clerk Births............................................................... 317 287 304 310 291 285 285 263 289 289 Marriages.......................................................... 123 110 84 87 78 95 84 74 86 115 Deaths.............................................................. 290 257 278 310 268 296 279 183 251 250 Dogs licensed................................................. 1,947 2,033 2,348 2,308 2,396 2,314 2,361 2,110 2,390 2,132 Business Certificates........................................... 105 101 78 89 110 87 91 84 92 87 New Voter Registrations....................................... 387 884 785 1,746 612 1,099 866 1,523 1,450 797 Passport Applications.......................................... 780 1,191 755 783 786 773 745 701 920 885 Public Safety Police Complaints Issued......................................... 659 - 153 127 140 110 86 434 589 n/a Arrests.............................................................. 310 490 410 400 406 409 396 285 364 312 Summons/Hearings............................................. 298 381 385 132 132 368 286 149 214 303 Citations.................................................... 3,451 4,956 5,004 4,399 3,742 3,748 2,953 2,938 3,646 2,707 Parking tickets issued.......................................... 731 1,091 821 920 680 624 645 548 484 n/a Total number of animal complaints......................... 223 195 214 253 271 295 297 383 489 n/a Fire Incidents Fire and Rescue............................................ 2,306 2,335 2,247 1,564 1,612 3,986 1,358 1,515 1,396 1,283 Ambulance Calls............................................ 2,499 2,756 2,624 2,885 2,650 2,616 2,444 2,663 2,745 2,379 Permits/certificates issued Smoke Detectors............................................ 517 520 501 385 406 327 401 322 444 613 Carbon Monoxide Detectors.............................. - - 392 349 377 314 377 295 412 587 Fireworks Display Permits................................ 1 1 1 1 1 1 1 1 1 1 Liquid Gas Storage Permits.............................. 137 148 40 40 28 38 29 19 27 65 Open Air Burning Permits................................. 649 - - - - - - - - 345 Oil Burner Install Permits.................................. 35 51 40 35 46 70 45 26 47 26 Sprinkler Inspections....................................... - 16 81 49 23 13 27 23 32 35 Underground Tank Installation........................... 3 7 7 11 6 22 26 8 6 27 Underground Tank Removals............................ 9 8 3 4 13 6 7 8 2 5 Building Department Permits issued.................................................... 2,487 2,744 2,381 2,456 2,214 2,470 2,375 2,774 3,080 3,207 Education Public school enrollment....................................... 4,491 4,671 4,624 4,546 4,604 4,614 4,638 4,766 4,783 4,801 (continued) Human Services Town of North Andover, Massachusetts 102 Comprehensive Annual Financial Report Operating Indicators by Function/Program Last Ten Years Year Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Planning Plan reviews...................................................... 16 16 13 12 8 2 5 27 33 18 Board of Health Inspections Food Est.(related permits&reviews).................. 151 147 192 198 198 179 288 225 234 352 Septic(all related reviews/permits/inspections)..... 135 135 67 53 30 49 46 22 140 202 OFFA Haulers/Trash Haulers&Placards................. 179 159 133 131 257 237 250 256 241 273 Commercial Permits 201 248 264 246 256 254 262 266 241 295 Professional Permits 40 63 70 75 75 83 82 89 53 101 Council on Aging Home delivered meals served................................ 13,829 13,999 17,605 18,527 19,685 15,106 15,541 18,369 17,519 16,230 Outreach Case Management 1,163 2,429 4,510 3,062 4,243 4,532 8,203 8,895 8,094 9,981 Community Education 1,720 1,861 3,619 3,698 3,900 7,078 6,708 7,682 8,635 8,417 Recreation 11,820 10,913 10,781 12,983 8,013 9,961 11,221 21,796 13,414 18,005 Transportation 984 1,008 1,174 2,242 3,379 4,234 4,285 4,598 6,822 6,377 Libraries Program attendance................................................ 2,029 2,571 2,225 3,304 8,060 3,867 4,489 4,122 4,938 6,631 Number of Library Card Holders ................................ 25,901 26,483 27,384 28,155 29,883 16,465 16,779 17,604 19,094 20,143 Circulation ............................................................. 218,117 220,477 206,606 201,961 213,598 212,970 213,517 206,362 185,419 176,385 PC&Internet Use................................................... 400 389 698 804 896 914 1,221 1,295 1,273 1,281 Reference Questions............................................... 18,824 20,384 23,380 24,549 26,758 28,069 28,503 29,318 29,081 30,744 Inter-Library Loans 46,796 46,978 53,021 59,939 49,302 54,073 53,367 56,569 57,952 60,559 Youth&Recreation Services Memberships 611 646 656 694 709 691 Summer Programs 75 792 814 854 798 832 Overall Services n/a 2,973 2,961 3,098 3,179 3,215 Sewer Service connections................................................. 81 99 45 32 31 46 58 14 54 43 Water Daily consumption(in million gallons).......................... 2.8640 2.9698 2.8126 2.9669 2.7371 2.8675 3.0120 2.6328 2.2101 3.0600 Source:Various Town Departments and Annual Town Report (concluded) N/A: Information not available Town of North Andover, Massachusetts 103 Comprehensive Annual Financial Report Capital Asset Statistics by Function/Program Last Ten Years Year Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General Government Number of Buildings.................... 13 13 13 13 13 13 13 13 13 13 Police Number of Stations..................... 1 1 1 1 1 1 1 1 1 1 Fire Number of Stations..................... 2 2 2 2 2 2 2 2 2 2 Education Number of elementary schools...... 5 5 5 5 5 5 5 5 5 5 Number of middle schools............ 1 1 1 1 1 1 1 1 1 1 Number of high schools................ 1 1 1 1 1 1 1 1 1 1 Public Works Water mains (miles).................... 146 147 147 147 148 148 148 148 148 148 Fire hydrants.............................. 1,470 1,475 1,477 1,479 1,487 1,489 1,511 1,515 1,515 1,515 Sanitary sewers (miles)................ 86 87 88 88 89 89 90 90 90 90 Storm sewers (miles)................... 99 99 99 99 99 99 99 99 99 99 Culture and Recreation Playgrounds.............................. 17 17 17 17 17 17 17 17 17 17 Parks....................................... 2 2 2 2 2 2 2 2 2 2 Playgrounds-Acreage................. 90 90 90 90 90 90 90 90 90 90 Parks -Acreage.......................... 11 11 11 11 11 11 11 11 11 11 Public beaches........................... 1 1 1 1 1 1 1 1 1 1 Ball fields.................................. 39 39 39 39 39 39 39 39 39 39 Tennis courts............................. 6 6 6 6 6 6 6 6 6 6 Source: Various Town Departments N/A: Information not available Town of North Andover, Massachusetts 104 Comprehensive Annual Financial Report Additional Information Town of North Andover, Massachusetts 105 Comprehensive Annual Financial Report ENTERPRISE FUND SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET POSITION BUDGETARY BASIS-BUDGET AND ACTUAL YEAR ENDED JUNE 30,2014 Water Fund Amounts Actual Carried Variance Original Final Budgetary Forward To To Final Budget Budget Amounts Next Year Budget OPERATING REVENUES: Charges for services........................................................................ $ 4,864,704 $ 4,864,704 $ 5,252,289 $ $ 387,585 Penalties and interest........................................................................ 20,000 20,000 23,849 3,849 TOTAL OPERATING REVENUES.................................................. 4,884,704 4,884,704 5,276,138 391,434 OPERATING EXPENSES: Cost of service and administration....................................................... 2,524,481 2,524,481 1,960,899 157,145 406,437 GILDS assessment............................................................................ - - - - - TOTAL OPERATING EXPENSES................................................... 2,524,481 2,524,481 1,960,899 157,145 406,437 OPERATING INCOME(LOSS)........................................................ 2,360,223 2,360,223 3,315,239 (157,145) 797,871 NONOPERATING REVENUES(EXPENSES): Investment income........................................................................... 7,000 7,000 15,186 8,186 Interest expense.............................................................................. (272,525) (272,525) (268,176) 4,349 Debt service-principal...................................................................... (1,417,953) (1,417,953) (1,417,953) - TOTAL NONOPERATING REVENUES(EXPENSES),NET.................................................... (1,683,478) (1,683,478) (1,670,943) 12,535 INCOME(LOSS)BEFORE TRANSFERS.......................................... 676,745 676,745 1,644,296 (157,145) 810,406 TRANSFERS: Transfers out................................................................................... (878,741) (878,741) (878,741) - CHANGE IN NET POSITION.......................................................... (201,996) (201,996) 765,555 (157,145) 810,406 NET POSITION AT BEGINNING OF YEAR............................................... 2,054,567 2,054,567 2,054,567 - NET POSITION AT END OF YEAR.......................................................... $ 1,852,571 $ 1,852,571 $ 2,820,122 $ (157,145) $ 810,406 Town of North Andover, Massachusetts 106 Comprehensive Annual Financial Report Sewer Fund Osgood Hill Fund Amounts Amounts Actual Carried Variance Actual Carried Variance Original Final Budgetary Forward To To Final Original Final Budgetary Forward To To Final Budget Budget Amounts Next Year Budget Budget Budget Amounts Next Year Budget $ 4,703,587 $ 4,703,587 $ 4,968,237 $ $ 264,650 $ 271,974 $ 271,974 $ 337,551 $ $ 65,577 22,000 22,000 29,717 7,717 - - - - 4,725,587 4,725,587 4,997,954 272,367 271,974 271,974 337,551 65,577 696,823 696,823 546,875 31,414 118,534 225,514 225,514 257,320 651 (32,457) 1,638,199 1,638,199 1,322,544 - 315,655 - - - - 2,335,022 2,335,022 1,869,419 31,414 434,189 225,514 225,514 257,320 651 (32,457) 2,390,565 2,390,565 3,128,535 (31,414) 706,556 46,460 46,460 80,231 (651) 33,120 4,000 4,000 9,099 5,099 - - - - - (343,099) (343,099) (339,054) 4,045 (1,648,901) (1,648,901) (1,643,901) 5,000 (1,988,000) (1,988,000) (1,973,856) 14,144 - - - 402,565 402,565 1,154,679 (31,414) 720,700 46,460 46,460 80,231 (651) 33,120 (413,525) (413,525) (413,525) (46,460) (46,460) (46,460) - - (10,960) (10,960) 741,154 (31,414) 720,700 - - 33,771 (651) 33,120 1,026,085 1,026,085 1,026,085 - 71,235 71,235 71,235 - - $ 1,015,125 $ 1,015,125 $ 1,767,239 $ (31,414) $ 720,700 $ 71,235 $ 71,235 $ 105,006 $ (651) $ 33,120 Town of North Andover, Massachusetts 107 Comprehensive Annual Financial Report TOWN OF NORTH ANDOVER, MASSACHUSETTS MANAGEMENT LETTER JUNE 30, 2014 Powers & Sullivan, L.U. � 1, Certified Public Accountants 100 C,tullaaaalanawlc¢ Parkws!a,N Suite 101 Wakdickl,i11A Gila," To the Honorable Board of Selectmen T. 781-914-1700 Town of North Andover, Massachusetts: F, 781-914-1701 �w�w w,laa>w�r�a n til tiau ll ll i Grua,cra>a.m. In planning and performing our audit of the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of North Andover, Massachusetts' (the "Town") as of and for the year ended June 30, 2014, in accordance with auditing standards generally accepted in the United States of America, we considered the Town's internal control over financial reporting (internal control)as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control. Accordingly, we do not express an opinion on the effectiveness of the Town's internal control. However, during our audit we became aware of matters that are opportunities for strengthening internal controls and enhancing operating efficiency. The memorandum that accompanies this letter summarizes our comments and suggestions concerning those matters. We will review the status of these comments during our next audit engagement. We have already discussed these comments and suggestions with various Town personnel, and will be pleased to discuss them in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations. This communication is intended solely for the information and use of management of the Town of North Andover, Massachusetts, and is not intended to be and should not be used by anyone other than these specified parties. The Town of North Andover's written response to the matters identified in our audit has not been subjected to the audit procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. December 1, 2014 TOWN OF NORTH ANDOVER, MASSACHUSETTS MANAGEMENT LETTER JUNE 30, 2014 TABLE OF CONTENTS PAGE Consider Centralizing the Collection of Permits, Fees and Other Receipts.................................................... 1 Trust Account Reconciliation ........................................................................................................................... 1 Integration of Accounts Receivable Software.................................................................................................. 1 Management of Student Activity Funds...........................................................................................................2 Police Detail and Ambulance Receivables......................................................................................................3 Government Accounting Standards Board (GASB) Statements for Pensions and OPEB..............................3 Consider Centralizing the Collection of Permits, Fees and Other Receipts Comment The Town had several departments in various locations that handled money. While not all of it was cash there is always a risk that payments could be lost or misappropriated. As an alternative to ensure that proper procedures exist in each of these departments, we recommended that the Town consider centralizing the collection of all permits, fees and other charges through a single office in town hall. In this way, all payments for goods and services could be managed by one office that is equipped to receive record and deposit funds. For the Town this would be the office of Treasurer/Collector. Current Status The Town has effectively implemented a process where all cash collections within Town Hall are centralized within the Treasurer's office. Additionally, a process was implemented where collections outside Town Hall are limited to check payment only. Trust Account Reconciliations Comment The Town maintains numerous trust accounts on the general ledger. While the investment activity from these accounts was posted to the general ledger on a monthly basis, reconciliations between the bank and the individual accounts on the general ledger were being performed on an annual basis. We indicated that quarterly reconciliations between the trust account statements and the general ledger balances would provide a better check and balance than the annual reconciliation process. Current Status The Town has implemented procedures to reconcile the individual trust account statement balances and the general ledger balances on a quarterly basis. Integration of Accounts Receivable Software Comment We indicated that the Town should consider eliminating the use of a stand-alone accounts receivable system and shift toward an integrated system. An integrated system would provide greater efficiencies as well as real-time, up-to-date data for important management decisions. We recommended that the Town perform a review of the current accounting system and consider implementing an integrated system. Current Status The Town has purchased and is currently working towards the full implementation of a new accounting system that includes an integrated accounts receivable module. 1 Recommendation We recommend that the Town continue to work towards the full implementation of the new accounting system including a fully integrated accounts receivable module. Management's Response The Town has started the implementation of the new accounting system. Each module will be phased in starting with the General Ledger going live July 1, 2015, Payroll and Permits January 1, 2016, Taxes June 2016, Tax Title August 2016 and Utility billing December 2016. Management of Student Activity Funds Comment Massachusetts General Law (MGL), Chapter 71, Section 47 requires that school districts maintain student activity funds in accordance with guidelines issued by the Department of Elementary and Secondary Education (DESE). In 2014 the DESE published a comprehensive manual titled Agreed-Upon Procedures and Audit Guidelines— Student Activity Funds. Within each section of the manual is the DESE Policy Guidance, the MGL Requirement and DESE's explanation of what type of policies, internal controls and audit procedures should be implemented in order to be in compliance with the law. These guidelines can be found on the DESE website at the following address: http://www.doe.mass.edu/finance/accounting One of the MGL requirements is that an annual audit of the student activities be completed and that at least once every three years the procedures should be performed by an outside independent auditor if student activity balances exceed $25,000. The DESE manual provides guidance on the acceptable methods and timing of the audit. Current Status An internal audit of the student activity funds was performed and documented as of June 30, 2014; however, the last independent audit was conducted for the fiscal year ending June 30, 2011. To comply with the DESE guidelines, an independent audit should be completed. Recommendation We recommend that the District implement policies and procedures to comply with the guidelines established by the DESE. Management's Response An independent audit will be conducted by June 30, 2015, and every three years after this per the School Department's "Policy and Procedures". 2 Police Detail and Ambulance Receivables Comment The Town does not record the monthly commitment, collection, and abatement of police detail and ambulance activity against the corresponding receivable balances maintained on the general ledger. An adjustment is recorded at year-end to balance with the police department and ambulance billing agent's records. Recording the police detail and ambulance activity against the receivable account and reconciling the balance on a monthly basis would provide a better check and balance than what currently exists. Current Status The Town has implemented procedures to reconcile police detail activity on a monthly basis; however, procedures have not been implemented to reconcile the ambulance activity from the billing agent's records to the Town's general ledger on a monthly basis. Recommendation We recommend that the Town develop procedures to record the ambulance activity on the general ledger and to reconcile the general ledger balance to the billing agent's records on a monthly basis. Management's Response The Town will implement procedures similar to the Police Details to reconcile the Ambulance receivables with the billing agent's records on a monthly basis. Government Accounting Standards Board (GASB) Statements for Pensions and OPEB Current Comment The GASB has issued new pronouncements that will significantly affect the accounting and reporting requirements for pensions. These new standards are required to be implemented in 2015 and will substantially impact the Town's financial statements and will also affect the requirements for accumulating the necessary data to meet the reporting requirements. The new standards that have been issued and their effective dates are as follows: • The GASB issued Statement#67, Financial Reporting for Pension Plans, an amendment of GASB Statement No. 25, which was required to be implemented in year 2015. • The GASB issued Statement#68, Accounting and Financial Reporting for Pensions, an amendment of GASB Statement No. 27, which is required to be implemented in year 2015. The GASB is expected to issue additional standards following#67 &#68 for Pensions, which will similarly affect accounting and financial reporting for OPEB Plans. The GASB is encouraging earlier application of these standards. See below for a brief summary of these new standards: ➢ GASB#67 and #68 will substantially change the reporting for pension liabilities and expenses. Changes in pension liability will be immediately recognized as pension expense or reported as deferred outflows/inflows of resources depending on the nature of the changes. Substantial changes to methods 3 and assumptions used to determine actuarial information for GAAP reporting purposes will be required. Current actuarial methods may continue to be used to determine funding amounts. Employers will report in their financial statements a net pension liability(asset) determined annually as of the year end. Net pension liability(asset) equals the total pension liability for the plan net of the plan net position. Pension liability is the actuarial present value of projected benefits attributed to past service, and plan net position is the accumulated plan assets net of any financial statement liabilities of the plan. The Town should expect to record significant pension and OPEB liabilities in the future. While the most significant changes from these GASB's do not go into effect until 2015, we wanted to make the Town aware of the magnitude these changes will have on financial statement reporting and disclosures. 4 TOWN OF NORTH ANDOVER, MASSACHUSETTS REPORTS ON FEDERAL AWARD PROGRAMS YEAR ENDED JUNE 30, 2014 TOWN OF NORTH ANDOVER, MASSACHUSETTS REPORTS ON FEDERAL AWARD PROGRAMS YEAR ENDED JUNE 30, 2014 TABLE OF CONTENTS PAGE Report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards...........1 Report on compliance for each major federal program; report on internal control over compliance; and report on schedule of expenditures of federal awards required by OMB Circular A-133..................3 Schedule of expenditures of federal awards.................................................................................................5 Notes to schedule of expenditures of Federal awards..................................................................................6 Schedule of findings and questioned costs...................................................................................................7 Powers & Sullivan, L.U. � 1, Certified llubllc Accountants REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING rare AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT Same 101 OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH tivakdickL SIA OINNO GOVERNMENT AUDITING STANDARDS T. 781-914-1700 �w�w w,ra�>w���a n til tiiu ll ll i�ru2,cr�>rm Independent Auditor's Report To the Honorable Board of Selectmen Town of North Andover, Massachusetts We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the Town of North Andover, Massachusetts, as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the Town of North Andover, Massachusetts' basic financial statements, and have issued our report thereon dated December 1, 2014. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Town of North Andover, Massachusetts' internal control over financial reporting (internal control)to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town of North Andover, Massachusetts' internal control. Accordingly, we do not express an opinion on the effectiveness of the Town of North Andover, Massachusetts' internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town of North Andover, Massachusetts' financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 1 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. edd December 1, 2014 2 Powers & Sullivan, LU Certified Public AAecountants REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON 100 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY suite 101 OMB CIRCULAR A-133 WakdickL NIA c:rINSO T. 7981-914 1700 F. 7S1-914-1701 Independent Auditor's Report "'"`'w,po ermindsuffi an,coin To the Honorable Board of Selectmen Town of North Andover, Massachusetts Report on Compliance for Each Major Federal Program We have audited the Town of North Andover, Massachusetts' compliance with the types of compliance requirements described in the OMB CircularA-133 Compliance Supplement that could have a direct and material effect on each of the Town of North Andover, Massachusetts' major federal programs for the year ended June 30, 2014. The Town of North Andover, Massachusetts' major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the Town of North Andover, Massachusetts' major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Town of North Andover, Massachusetts' compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the Town of North Andover, Massachusetts' compliance. Opinion on Each Major Federal Program In our opinion, the Town of North Andover, Massachusetts complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2014. Report on Internal Control Over Compliance Management of the Town of North Andover, Massachusetts is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In 3 planning and performing our audit of compliance, we considered the Town of North Andover, Massachusetts' internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Town of North Andover, Massachusetts' internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 We have audited the financial statements of the Town of North Andover, Massachusetts, as of and for the year ended June 30, 2014, and have issued our report thereon dated December 1, 2014, which contained an unmodified opinion on those financial statements. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditure of federal awards is fairly stated in all material respects in relation to the financial statements as a whole. December 1, 2014 4 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2014 Federal CFDA Federal Grantor/Program Title Number Expenditures U.S. DEPARTMENT OF AGRICULTURE: Passed through Massachusetts Department of Elementary and Secondary Education: Non-Cash Assistance (Commodities): National School Lunch Program 10.555 $ 63,751 Cash Assistance: School Breakfast Program 10.553 20,286 National School Lunch Program 10.555 264,589 TOTAL AGRICULTURE 348,626 U.S. DEPARTMENT OF TRANSPORTATION: Passed through the Massachusetts Executive Office of Public Safety and Security: State and Community Highway Safety 20.600 1,479 U.S. DEPARTMENT OF EDUCATION: Passed through Massachusetts Department of Elementary and Secondary Education: Title I Grants to Local Educational Agencies 84.010 245,432 Special Education Grants to States 84.027 1,067,656 Improving Teacher Quality State Grants 84.367 58,420 ARRA- Race to the Top 84.395 59,537 Passed through Massachusetts Department of Early Education and Care: Special Education - Preschool Grants 84.173 22,023 TOTAL EDUCATION 1,453,068 U.S. DEPARTMENT OF HOMELAND SECURITY: Passed through the State Office of Emergency Manaaement: Public Assistance Grants 97.036 264,859 TOTAL $ 2,068,032 See notes to schedule of expenditures of federal awards. Town of North Andover, Massachusetts 5 Reports on Federal Award Programs Notes to Schedule of Expenditures of Federal Awards Year Ended June 30, 2014 Note 1 -Definition of Reporting Entity The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the Town of North Andover, Massachusetts. All federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other governmental agencies is included on the schedule. Note 2 -Significant Accounting Policies The accounting and reporting policies of the Town of North Andover, Massachusetts, are set forth below: (a) Basis of Presentation -The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting. Accordingly, expenditures are recognized when the liability is incurred. (b) Cash Assistance -School Breakfast and Lunch Program- Program expenditures represent federal reimbursement for meals provided during the year. (c) Non-Cash Assistance (Commodities)—School Lunch Program— Program expenditures represent the value of donated foods received during the year. Note 3— Program Clusters In accordance with Subpart A§_.105 of OMB Circular No. A-133, Audits of States, Local Governments and Non Profit Organizations, certain programs have been clustered in determining major programs. The following represents the clustered programs: CFDA Name of Cluster/Program Number Child Nutrition Cluster School Breakfast Program 10.553 National School Lunch Program 10.555 Special Education Cluster Special Education Grants to States 84.027 Special Education Preschool Grants 84.173 Town of North Andover, Massachusetts 6 Reports on Federal Award Programs Schedule of Findings and Questioned Costs Year Ended June 30, 2014 A. Summary of Auditor's Results 1. The auditor's report expresses an unmodified opinion on the financial statements of the Town of North Andover, Massachusetts. 2. No significant deficiencies relating to the audit of the financial statements are reported in the Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. 3. No instances of noncompliance material to the financial statements of the Town of North Andover, Massachusetts, were disclosed during the audit. 4. No significant deficiencies relating to the audit of the major federal award programs is reported in the Report on Compliance for Each Major Federal Program; Report on Internal Control over Compliance; and Report on Schedule of Expenditures of Federal Awards required by OMB Circular A-133. 5. The auditor's report on compliance for the major federal award programs for the Town of North Andover, Massachusetts, expresses an unmodified opinion. 6. No audit findings that are required to be reported in accordance with Section 520(a)of OMB A-133 are reported in this schedule. 7. The programs tested as major programs include: CFDA Program Title Number Special Education Grants to States 84.027 Special Education - Preschool Grants 84.173 8. The threshold for distinguishing Types A and B programs was $300,000. 9. The Town of North Andover, Massachusetts was determined to be a low-risk auditee. B. Findings-Financial Statements Audit None. C. Finding and Questioned Costs— Major Federal Award Programs None. D. Prior Year Audit Findings and Questioned Costs None. Town of North Andover, Massachusetts 7 Reports on Federal Award Programs Town of North Andover Directory www.townofnorthandover.com Emergency Numbers Fire Rescue or Ambulance..................................................................911 Police.................................................................................................911 Your Town Government General Information ..........................................................978-688-9500 Accounting Office.............................................................978-688-9520 Animal Control Officer...................................................... 978-683-3168 Animal Inspector...............................................................978-475-3600 Assessor's Office ...............................................................978-688-9566 Community Development and Services .............................978-688-9533 Building Department.........................................................978-688-9545 Conservation Department..................................................978-688-9530 Health Department ...........................................................978-688-9540 Planning Department.........................................................978-688-9535 Zoning Board of Appeals...................................................978-688-9541 Emergency Management Agency.......................................978-688-9580 Fire Department—General Business ..................................978-688-9590 Housing Authority..............................................................978-682-3932 Library—Stevens Memorial................................................978-688-9505 Police Department—General Business............................... 978-683-3168 Public Works Trash and Recycling.....................................................978-685-0950 Water/Sewer Department.............................................978-688-9570 Water Treatment Plant ................................................. 978-688-9574 Recreation Department......................................................978-682-9000 School Department Superintendent's Office ................................................978-794-1503 Atkinson School ...........................................................978-794-0124 Franklin School.............................................................978-794-1990 High School .................................................................978-794-1711 Kittredge School...........................................................978-794-1688 Middle School..............................................................978-794-1870 Sargent School .............................................................978-725-3673 Thomson School ..........................................................978-794-1545 Sealer of Weights and Measures ........................................978-688-9533 Selectmen's Office ............................................................978-688-9510 Senior Citizen's Center.......................................................978-688-9560 Town Clerk........................................................................978-688-9501 Town Manager..................................................................978-688-9510 Town Moderator................................................................978-688-9510 Treasurer/Collector ............................................................978-688-9550 Veteran's Services..............................................................978-688-9525 Youth Services...................................................................978-682-9000