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2012-05-21 Board of Selectmen Agenda Packet
TOWN OF NORTH ANDOVER BOARD OF SELECTMEN 120 MAIN STREET NORTH ANDOVER,,MASSACHUSETTS 01845 �CTi.Rb T¢✓u Tracy M. Watson,Chairman TEL. (978)688-9510 William F. Gordon FAX(978)688-9556 Rosemary Connelly Smedile Donald B. Stewart Richard M.Vaillancourt BOARD OF SELECTMEN&LICENSING COMMISSIONERS AGENDA MAY 21,2012—7:00 PM TOWN HALL MEETING ROOM 120 MAIN STREET L CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. APPROVAL OF MINUTES A. Open Session Minutes as written May 7, 2012 IV. COMMUNICATIONS AND ANNOUNCEMENTS V. CONSENT ITEMS A. Request to surplus technology equipment B. First Right of Refusal, Affordable Unit Resale, 1 Harvest Drive,Unit 211 at Oakridge Village C. Award and Execute $4,508,348 General Obligation Bonds, dated May 15, 2012, and delivered May 29,2012, and related matters VI. LICENSING COMMISSIONERS; A. St. Gregory's Armenian Apostolic Church requests One-Day Liquor License June 14, 2012 From 6:00— 11:00 P.M. VII. OLD BUSINESS Preparation for Town Meeting A. FYI Budget B. Recommendations on Town Meeting Warrant Articles C. Acceptance and Signing of the Town Meeting Warrant VIIL PUBLIC COMMENT IX. TOWN MANAGER'S REPORT A. Appointments: A vote of the Board of Selectmen is required to approve the Town Manager's Appointments of Sworn Police Personnel 1. Appointment of Police Lieutenant: Charles P. Gray 2. Appointment of Police Sergeants: Daniel P. Lanen and Daniel J, Crevier 3. Appointment of Police Officers: Brian L. Faye, Michael J. Reardon and Steven J. Corr B. John Quirk of Brooks School requests permission to use Town Common on May 24,2012 for graduating seniors picture taking around lunchtime C. Kristen Mullen Girl Scout Leader requests permission to use Town Common on June 12, 2012,from 3:30-5:30 p.m..with 50 attendees X. ADJOURNMENT Approval of Minutes BOARD OF SELECTMEN MINUTES MAY 7, 2012 CALL TO ORDER: Chairman Tracy Watson called the meeting to order at 7:05 PM at Town Hall Meeting Room. ATTENDANCE: The following were present: Tracy Watson, Chairman;William F. Gordon, Clerk; Rosemary Sm edile Licensing Chairman; Donald Stewart, Richard Vaillancourt, Ray Santilli, Assistant Town Manager; and Andrew Maylor, Town Manager. PLEDGE OF ALLEGIANCE APPROVAL OF MINUTES: y Rosemary rove the open Session William Gordon made a MOTION, seconded b Rosema Smedile, to app P Minutes of April 23, 2012, as written. Vote approved 5-0. William Gordon made a MOTION, seconded by Rosemary Smedile, to approve the Executive Session Minutes of April 23, 2012. Vote approved 5-0. COMMUNICATIONS ANNOUNCEMENTS AND PUBLIC COMMENT: The Board presented a Certificate of Appreciation to Richard Vaillancourt for his 7'/z years of service on the ZBA. The Board presented a Proclamation declaring May 9, 2012, as"Senior Center Recognition Day". CONSENT ITEMS: Appointments ntments The Board of Selectmen appointed one resident to the Affordable Housing Trust—Board of Trustees. William Gordon made a MOTION, seconded by Rosemary Smedile, to appoint Joan Fitzgibbons of 54 Dufton Court, North Andover to the position of Board of Trustees of the Affordable Housing Trust effective immediately; said term will end on June 30, 2013. Vote approved 4-0-'1; Tracy Watson abstained. The Board of Selectmen appointed one resident to the Sustainability Committee. William Gordon made a MOTION, seconded by Rosemary of the Sulstao biappoint Will (Commercial Windsor Lane, North Andover to the position of member Subcommittee) effective immediately; said term will end on June 30, 2013. Vote approved 5-0. Preliminary Comcast License renewal Ascertainment Findings, t provided an Information Technology Director matt Killen and an horny Executive ilSummary of a significant m1eestonee of n the the Cable Television Advisory C path that will lead to a new license agreement with Comcast, the ascertainment findings. In order to move forward the Board of Selectmen were asked to accept this report. direct the William Gordon made a MOTION, seconded by Richard Va oro hereby authorize to Comcast as Cable Television Advisory Committee to prepare a formal "Request may be needed consistent with a"dual track" pursuit of both informal and formal renewal proceedings. Vote approved 5-0. Board of Selectmen Meeting Schedule: Jul — December-2012 The Board was asked to approve list o f dateseanidgrequesteld the balance votefto app 2012. The schedule.Town Manager recommended a st William Gordon made a MOTION, seconded by Donald Stewart, to approve the following meeting schedule for the Board's meetings s & July-Decemer 2012; 3 &b 7, 2012.July Vote approved 5o0September 10 & 24, October 15, & 29, November May 7, 2012 2 Board of Selectmen Minutes Ma i Request to Surplus Wood Chips and Compost Material Per the Town Policy regarding surplus material and equipment, DPW Director Bruce Thibodeau requested that the Board approve the surplus of wood chips and compost material. e the request of DPW Smedile to approve q Gordon made a MOTION, seconded by Rosemary , William 'c yards of Director Bruce Thibodeau to surplus 20,000 cubic yards of wood chips and 10 000 cube y composted material. Vote approved 5-0. First Right of Refusal Affordable Housing Resales Community Development Director Curt Bellavance asked the Board not.to exercise their first right of refusal on an Affordable Housing Resale located at 20 Marengo Street at Waverly Oaks and to let CHAPA manage the resale. William refusal as it relates to MOTION, e following eaf affordable housing undit that s for sale t 20 MarengoeStreet at right of refusa Waverly Oaks. Vote approved 5-0. Request of Festival Committee to use the Town Common for Annual Sheep Shearing Festival The Festival Committee requests use of the Town Common on Sunday, May 20, 2012 from 6:00 a.m. to 6:00 p.m. and close adjacent streets during the event. William Gordon made a MOTION, seconded by Rosemary Smedile, hereby approves the request of the Festival Committee to use the Town Common for the Annual Sheep Shearing Festival on May 20, 2012, from 6:00 a.m. to 6:00 p.m. and further approves the request to close Massachusetts Avenue and Academy Road to thru traffic from Osgood Street to Academy Road from 7:00 a.m. to 6:00 p.m. and to designate a section of parking on Osgood Street along the Common as"Handicap Parking Only" during the event. Vote approved 5-0. LICENSING COMMISSIONERS: William Gordon made a MOTION, seconded by Rosemary Smedile, to open a meeting of the North Andover Licensing Commission. Vote approved 5-0. Merrimack College request One-Day All Alcohol License; May 19 .2012 William Gordon made a MOTION, seconded by Tracy Watson, acting as Licensing Commissioners, hereby grants k College for use All Alcohol License Center atnMerrimack College forthe`LLegacy Reception" on May Merrimac g 19, 2012 from 11:00 a.m. to 9:00 P.M. Vote approved 5-0. Merrimack College request One-Day All Alcohol License, May 18 2012 William Gordon made a MOTION, seconded by Tracy Watson, acting as Licensing Commissioners, hereby grants a One-Day All Alcohol License per M.G.L. c. 138, section 14 to John Gallagher of Merrimack College, for use under the tent at the Campus Center Parking Lot at Merrimack College for the "Senior BBQ" on May 18, 2012 from 4:00 p.m. to 9:00 p.m. Vote approved 5-0. Brooks School request One-Day All Alcohol License June 15 2012 William Gordon made a MOTION, seconded by Tracy Watson, acting as Licensing Commissioners, hereby grants a One-Day All Alcohol License per M.G.L. c. 138, section 14 to Donna Adams of 22 Alexis Lane, Sandown New on June Hampshire, ne 15, 2012 from 4 00 p!m. to 10e O Dining p m. Voltetapproved 5h0o1,.Great Pond Road, North Andover William Gordon made a MOTION, seconded by Richard Vaillancourt, to close the meeting of the Licensing Commission. Vote approved 5-0. OLD BUSINESS: Preparation for Town Meeting Numerical Ordering of the Warrant Articles & Recommendations William Gordon made a MOTION, seconded by Rosemary.Smedile, to``TABLE the numerical ordering and recommendations of Town Warrant Articles until the next meeting on May 21, 2012. Vote approved 5-0. Ma '7-2012 3 Board of Selectmen Minutes Y' PUBLIC COMMENT: Resident Michelle Saracusa of 210 Andover Street, North Andover, MA came before the Board appeal M ass the Order of Conditions that was approved by the North Andover Conservation Commission for M DEP file#242-1480 on April 13, 2012. The Board of Selectmen responded that they cannot override any land use board decision. The Board of Selectmen is not a court of appeals. The Town Manager said that the resident has recourse through the state and file an appeal with the DEP or take action against the Town of North Andover, TOWN MANAGER'S REPORT: Appointments The Town Manager appointed Dan Hollins for the position of Senior Working Foreman. Facility and Review Assessments The Town Manager and Director of Facilities Steve Foster have been working together putting together property assessment reports for all of the town's facilities. A report was given to the Board for review. GIS-Operational on the Town Website The GIS (Geographical Information System) is now available to the public from the Town's website with limited access to all of the data available. In addition, the system is now available internally to department and division heads. Over time this system will allow us to become more efficient in the areas of public safety, engineering, assessing and public works. It will also immediately expand the information available to the residents and business owners of North Andover. Police Association Monument—Moving to the new Police Station The North Andover Police Association asked permission to move a memorial monument that is located at their old location and to move to their new location at 1475 Osgood Street. They are planning a solemn service and police escort of the monument once a move date has been set and a special service on Memorial Day. ADJOURNMENT: Richard Vaillancourt made a MOTION, seconded by Rosemary Smedile, to adjourn the meeting at 8:15 p.m. Vote approved 5-0. Adele J. Johnson Administrative Secretary William Gordon, Clerk of the Board Communications And Announcements Consent Items II TOWN OF NORTH ANDOVER,MASSACHUSETTS OFFICE OF Information Technology 120 MAIN STREET,01845 NORTH D��t I- 0 t - e 7 QDRAT fD PPP �SSACHUS�� Telephone(978)794-1504 Matthew Killen, mkillen @townofnorthandover.com Director Memorandum To: Andrew Maylor From: Matthew Killen Date: May 8,2012 re: asset disposal Please find attached a list of assets for disposal. Each of these has been determined to be of no value to the Town.Please let me know if you have any questions regarding these items. Town of North Andover 5/8/2012 office of Information Technology Equipment Disposal Worksheet Make Model Serial Number Description Reason for Disposal 1 VIEWSONIC VA1926W3 Q RS083441249 LCD SCREEN FAILED/CRACKED SCREEN 2 GATEWAY TFT1780PS MW66B BON 03001 LCD SCREEN FAILED/CRACKED SCREEN OPTIPLEX GX520 115MOC1 DESKTOP FAILED:ALL USEABLE PARTS REMOVED 3 DELL CNBSB07677 PRINTER BROKEN ROLLERS/FUSER 4 HP CP2025 KL 3015 08AE03240 PRINTER FAILED:ALL USEABLE PARTS REMOVED 6 KONICA 6 SHARP UX B700 57105986 FAX MACHINE NO DIALTONE FAILED:ALL USEABLE PARTS REMOVED 7 AEG OLYMPIA STARTYPE 2 23012341 TYPEWRITER FAILED:ALL USEABLE PARTS REMOVED 8 MICROTEK SCANMAKER X6 S8C8271846 DESKTOP SCANNER TAPE UNIT FAILED 9 JVC VIDEOMOVIE GR-AX2 10774740 CAMCORDER BF250 NB9810048368 SURGE/BATTERY BATTERY FAILED to APC u APC BF250 NB9810048643 SURGE/BATTERY BATTERY FAILED BF250 NB9810048622 SURGE/BATTERY BATTERY FAILED 12 APC - BATTERY FAILED 13 APC BF250 NB9810048650 SURGE/BATTERY 14 APC BF250 NB9810048619 SURGE/BATTERY BATTERY FAILED ' is OPTI-UPS TS650B 311280701372 SURGE/BATTERY BATTERY FAILED 16 OPTI-UPS TS650B 311281201988 SURGE/BATTERY BATTERY FAILED BATTERY FAILED 17 APC BACK-UPS 500 PB9816514040 SURGE/BATTERY KB-2008 70400398 KEYBOARD MISSING KEYS 18 USERFUL MISSING KEYS 19 GATEWAY 7005395 06E00401362D KEYBOARD KB N/A KEYBOARD CABLE BROKEN 20 DELL CABLE BROKEN 21 DELL KB TH0463CD3717208AE KEYBOARD KEYBOARD CABLE BROKEN C1203505 zz GATEWAY 7002739 CABLE BROKEN 23 GATEWAY 7002739 C1201879 KEYBOARD DESK-JET 648C MX08S121NJNL INKJET PRINTER PAPER FEEDER BROKEN 24 ' PAPER FEEDER BROKEN 25 EPSON STYLUS C88 USPD052216 LASER PRINTER FAILED:ALL USEABLE PARTS REMOVED 26 HP LASERJET 11000 USPD052216 LASER PRINTER 27 HP CLJ CP3505DN CNBC84BOWV COLOR LASER PRINTER FUSER BROKEN 28 HP OFFICE-JET 6500 TH0222100Z05G3 INKJET PRINTER INK HEAD BROKEN 29 HP LaserJet 2605DN CNGC73D56C COLOR LASER PRINTER FAILED:ALL USEABLE PARTS REMOVED 30 DELL OPTI 745 6T1DRD1 DESKTOP COMPUTER OPTI 745 9TIDRDI DESKTOP COMPUTER FAILED:ALL USEABLE PARTS REMOVED 31 DELL 32 GATEWAY E4300 34796987 DESKTOP COMPUTER FAILED:ALL USEABLE PARTS REMOVED 33 CISCO 2610 JAB033885yu IP ROUTER WATER DAMAGE Town of North Andover 5/8/2012 Office of Information Technology Equipment Disposal Worksheet 34 OEM N/A N/A DESKTOP COMPUTER FAILED:ALL USEABLE PARTS REMOVED 35 OEM N/A N/A DESKTOP COMPUTER FAILED:ALL USEABLE PARTS REMOVED 36 HP LaserJet M2727NF CND98C71JC Multi Funt Printer FAILED:ALL USEABLE PARTS REMOVED 37 AEG OLYMPIA STARTYPE 2 worn off TYPEWRITER FAILED:ALL USEABLE PARTS REMOVED 38 GATEWAY E-Series 32335811 DESKTOP COMPUTER FAILED:ALL USEABLE PARTS REMOVED 39 COMPAQ SR 5000 200814ASZ13039 DESKTOP COMPUTER FAILED:ALL USEABLE PARTS REMOVED 4o DELL OPTIPLEX GX240 8XZ81`11 DESKTOP COMPUTER FAILED:ALL USEABLE PARTS REMOVED 41 GATEWAY E-4300 34796981 DESKTOP COMPUTER FAILED:ALL USEABLE PARTS REMOVED 42 GATEWAY TFT1780PS MW664B0009370 LCD SCREEN ON/OFF SWITCH BROKEN 43 DELL MX-032DVX 476051AZ LCD SCREEN ON/OFF SWITCH BROKEN 44 NORTEL/MERIDIAN M7208 n/a PHONE (QTY: 12)NO LONGER USEABLE . i i I COMMUNITY DEVELOPMENT DIVISION Building Conservation Health Planning Zoning MEMORANDUM TO: Andrew W. Maylor,Town Manager FROM: Curt Bellavance, Director RE: Affordable Unit Resale DATE: May 15, 2012 CHAPA (Citizens' Housing and Planning Association), has notified the Town that the following affordable units are up for sale. CHAPA manages the resale of affordable units at Oakridge Village. 1 Harvest Drive, Unit 211 at Oakridge Village The Board of Selectmen has to determine if they want to exercise their right of first refusal. Our office would recommend that the Board of Selectmen should not exercise their right of first refusal for the affordable housing unit. If the Town chooses to exercise its right,then it would be the responsibility of the Town to purchase the property or locate an individual to purchase the property. CHAPA,which is the monitoring agent for the Town and several other communities, has better resources to preserve the unit as affordable and has recently hired new staff to manage the marketing of the units. The timeframe is 120 days to find an applicant that meets the affordable criteria. Because the Town has been handling several affordable unit resale's during the past twelve months, our office has been working more closely with the Housing Partnership Committee and North Andover Housing Trust to ensure that the units stay affordable. The deadline to act is June 8. If the Board does not act the right of first refusal is deemed authorized. It is recommended that the Board of Selectmen not exercise their right of first refusal. 1600 Osgood Street,North Andover,Massachusetts 01845 Phone 978.688.9531 Fax 978.688.9542 Web www.townofnorthandover.com VOTE OF THE BOARD OF SELECTMEN I,the Cleric of the Board of Selectmen of the Town of North Andover,Massachusetts (the board held May` 'Town"), certify that at a meeting of the Y 21, 2012, of which meeting all members of the board were duly notified and at which a quorum was present,the following votes were unanimously passed, all of which appear upon the official record of the board in my I custody: Voted: that the sale of the $4,508,348 General Obligation Municipal Purpose Loan of 2012 Bonds of the Town dated May 15, 2012 (the "Bonds"), to FTN Financial Capital Markets at the price of$4,607,060.47 and accrued interest is hereby approved and confirmed. The Bonds shall be payable on May 15 of the years and in the principal amounts and bear interest at the respective rates; as follows: Interest Interest Year Amount Rate Year Amount Rate 2013 $498,348 2.00% 2019 $275,000 2.00% 2014 490,000 2.00 2020 275,000 2.00 2015 490,000 2.00 2021 265,000 2.00 2016 490,000 2.00 2022 260,000 2.00 2017 490,000 2.00 2025 300,000 2.125 2018 275,000 2.00 2029 400,000 2.50 Further Voted: that the Bonds maturing on May 15, 2025 and May 15, 2029 (each a"Term Bond") shall be subject to mandatory redemption or mature as follows: Term Bond due May 15, 2025 Year Amount 2023 $100,000 2024 100,000 2025* 100,000 *Final Maturity Term Bond due May 15, 2029 Year Amount 2026 $100,000 2027 100,000 2028 100,000 2029* 100,000 *Final Maturity Further Voted: that in connection with the marketing and sale of the Bonds, the preparation and distribution of a Notice of Sale and Preliminary Official Statement dated May 7, 2012, and a final Official Statement dated May 15,2012 (the "Official Statement"), each in such form as may be approved by the Town Treasurer, be and o hereby are ratified, confirmed, approved and adopted. Further Voted: that the Bonds shall be subject to redemption, at the option of the Town, upon such terms and conditions as are set forth in the Official Statement. Further Voted: that the Town Treasurer and the Board of Selectmen be, and hereby are, authorized to execute and deliver a continuing disclosure undertaking in compliance with SEC Rule 15c2-12 in such form as may be approved by bond counsel to the Town, which undertaking shall be incorporated by reference in the Bonds for the benefit of the holders of the Bonds from time to time. Further Voted: that we authorize and direct the Treasurer to establish post issuance federal tax compliance procedures in such form as the Treasurer and bond counsel deem sufficient, or if such procedures are currently in place,to review and update said procedures, in order to monitor and maintain the tax-exempt status of the Bonds. Further Voted: that each member of the Board of Selectmen,the Town Clerk and the Town Treasurer be and hereby are, authorized to take any and all such actions, and execute and deliver such certificates, receipts or,other documents as may be determined by them, or any of them, to be necessary or convenient to carry into effect the provisions of the foregoing votes. I further certify that the votes were taken at a meeting open to the public, that no vote was taken by secret ballot, that a notice stating the place, date, time and agenda for the meeting (which agenda included the adoption of the above votes) was filed with the Town Clerk and a copy thereof posted in a manner conspicuously visible to the public at all hours in or on the municipal building that the office of the Town Clerk is located or, if applicable, in accordance with an alternative method of notice prescribed or approved by the Attorney General as set forth in 940 CMR 29.03(2)(b), at least 48 hours, not including Saturdays, Sundays and legal holidays, prior to the time of the meeting and remained so posted at the time of the meeting, that no deliberations or decision in connection with the sale of the Bonds were taken in executive session, all in accordance with G.L. c.3 OA, §§18-25 as amended. Dated: May 21, 2012 Clerk of the Board of Selectmen BOS11I12702833.1 � 2 I l Certificate of Award I, the Treasurer of the Town of North Andover, Massachusetts, hereby award the $4,508,348 General Obligation Municipal Purpose Loan of 2012 Bonds dated May 15, 2012 (the "Bonds") to the bidder submitting the bid attached hereto in accordance with the terms set forth in the attached bid and in the Notice of Sale dated May 7, 2012 relating to the Bonds, subject to the approval of this award by the Board of Selectmen. Date: May_, 2012 Treasurer Bos111 12702810.1 Standard & Poor's in Services: NEW_ISSUE (see"Rating" herein) N_ 'EN 'TED N.4AY 3 2012 ST,AJ NT DA E OFFICIAL IE NOTICE OF SALE AND PRELIMINAR V,;5 based upon an analysis of existing law and assuming,among other 9 Bond Counsel,b In the opinion of Edwards Wildman Palmer LLP,B matters, compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax of not a specific preference item for purposes of the under the Internal Revenue Code of 1986 ("the Code"). Interest on the Bonds is i federal individual or corporate alternative minimum taxes and such interest is included in adjusted current earnings whe n calculating nipt from Massachusetts personal corporate alternative minimum taxable income. Under existing law, interest on the Bonds is exe Bonds will be designated aL�Qualffled from Massachusetts personal property taxes. The B _� . . I income taxes,and the Bonds are exempt f the Bond Counsel expresses no opinion regarding any Tax Exempt Obligations' for purposes of Section 265 b) 3) o or the accrual or receipt of interest on the Bonds. (See "Tax V other tax consequences related to the ownership or disposition of, Exemption"herein.) $4,5081,348 TOWN OF NORTH ANDOVER Massachusetts GENERAL OBLIGATION MUNICIPAL PURPOSE L OAN OF 2012 BONDS 3 Due: May 15,2013-2029 Dated May 15,2012 MATURITIES Principal Interest Price/ 0 Principal Interest Price/ Year �Amount Rate Yield Year Amount Rate Yield 2022 $260,000 2013 $498,348 2023 100,000 2014 490,000 2024 100,000 2 0 2015 490,000 2025 100,000 2016 490,000 100,000 2026 2017 490,000 2027 100,000 2018 275,000 2028 100,000 2019 275,000 2029 100,000 2020 275,000 2021 265,000 in which the Bonds mature. Interest from the date of the Bonds will be Principal of the Bonds will be payable May 15 of the years -annually thereafter on each May 15 and November 15. The Bonds will be subject to payable on November 15, 2012 and semi redemption prior to their stated dates of maturity as described herein. without coupons, and, when issued, will be registered in the name of Cede & The Bonds are issuable only in fully registered form New York,New York. DTC will act as securities Co., as Bon he Depository Trust Company("DTC"), downer and nominee for T e made in book-entry form, in the denomination of$5,000 or any integral e-�j depository for the Bonds. Purchases of the Bonds will b 2013. (See "Book-Entry Transfer System" multiple thereof, except for one denomination of $3,348 of the Bonds maturing in herein.) own. legality of the Bonds will be approved by Edwards Wildman Palmer LLP,Boston,Massachusetts,Bond Counsel to the T The lega financial advisor to the Town. it is expected that the tt serves finan al UniBank Fiscal Advisory Services,Inc.,Whitinsville,Massachusetts, se es as Bonds,in definitive form,will be delivered to DTC,or the offices of its custodial agent,on or about May 29,2012. SEALED AND ELECTRONIC BIDS RECEIVED 11:00 A.M. (Local Time) Cr Tuesday,May 15,2012 UnlWink- A UniBank Fiscal Advisory Services, Inc. i Table of Contents Page Page Page ......ii Five Years Outstanding Debt........15 Undesignated General Fund ement........ 33 Issue Summary Statement Balance and Free Cash............... Notice of Sale.................................iii Bonded Debt vs.Population, Official Statement........................... 1 Valuations and Income............... 155 Stabilization Fund 34 Introduction..................................... 1 Annual Debt Service................... ..34 Revenue Anticipation Borrowing.16 Collective Bargaining.................. Part I.The Bonds..........................2 Contracts....................................... 16 Physical and Economic Description of the Bonds..........2 Overlapping Debt.......................... 17 Characteristics............................35 Record Date...........................2 Contingent Liabilities....................17 Building Permits.........................35 19 Principal Employers...................35 Book-Entry Transfer System.3 Retirement Plan............................. Authorization and Use of Property Taxation&Valuation.....21 Employment&Payrolls.... Proceeds.................................5 Valuations............... 22 School Facilities.....................................36 Redemption..............................5 Tax Rates.......................................22 Public School Enrollments.........36 Mandatory Redemption.........6 Largest Taxpayers.........................23 Other Data(Demographics)..........37 Sources and Uses of Funds.......6 Tax Levies.....................................23 Litigation.......................................40 Security and Remedies.............6 Calculation of Tax Levies and Opinion of Bond Counsel.........8 Levy Limits......................... ......26 Appendix A.Financial Tax Exemption.........................8 Tax Collections and Abatements ..27 Statements.................................A-1 Rating..................................... 10 Taxes Outstanding.........................28 Appendix B.2011 Audited Limited Town Finances..............................28 Continuing Disclosure......... 10 Budget and Appropriation Financial Statements.................B-1 Process.......... ......................29 ..... Appendix C.Proposed Form of Part II.The Town....................... 11 Budget Comparison....................29 Legal Opinion............................C-1 Governing Bodies and State Aid........................................30 Officers................................. 11 School Building Assistance...........30 Appendix D.Proposed Form of Services.................................. 11 Motor Vehicle Excise....................31 Limited Continuing Disclosure.D-1 Authorization of General Community Preservation Act........31 Obligation Bonds&Notes.... 12 Other Taxes...................................32 Appendix E.Bid Form...............E-1 Debt Limits............................. 12 Tax Increment Financing..............33 Types of Obligations.............. 13 Debt........................................ 14 Authorized Unissued Debt..... 15 The information and expressions of opinion in this Official Statement are subject to change without notice. Neither the delivery of this Official Statement nor any sale Bonds shall,date ofahis Off cial Statement.circumstances, create any implication that there has been no material change in the affairs of the Town since i ISSUE SUMMARY STATEMENT Issuer: Town of North Andover, Massachusetts Date of Sale: Tuesday, May 15, 2012 at 11:00 a.m. (local time) Method of Sale: Sealed and Electronic Bids Minimum Bid: Par plus accrued interest to the date of delivery Location of Sale: UniBank Fiscal Advisory Services,Inc., 49 Church St.,Whitinsville,MA Issue: $4,508,348 General Obligation Municipal Purpose Loan of 2012 Bonds, Book-Entry Only(See "Book-Entry Transfer System",herein.) Dated Date of Bonds: May 15, 2012 Maturity Date of Bonds: Serially on May 15, 2013 —2029, as detailed herein. Redemption: The Bonds are subject to redemption prior to their stated dates of maturity as described herein. Credit Rating: Standard and Poor's Ratings Services rating is pending. Security: The Bonds are valid general obligations of the Town of North Andover, Massachusetts and the principal of and interest on the Bonds are payable from ad valorem taxes which may be levied upon all property within the territorial limits of the Town and taxable by it subject to the limit imposed by Chapter 59, Section 21 C of the General Laws. Basis of Award: Lowest true interest cost(TIC) as of the dated date. Tax Exemption: Refer to Tax Exemption and Appendix C — "Proposed Form of Legal Opinion" herein. Continuing Disclosure: Refer to Continuing Disclosure and Appendix D — "Proposed Form of Limited Continuing Disclosure Certificate"herein. Bank Qualification: The Bonds will be designated as "cluafifwd tax-exempt obligations" for purposes of Section 265 b 3 of the Internal R u evene Code of 1986 as amended. Paying Agent: U.S. Bank National Association,Boston,Massachusetts Legal Opinion: Edwards Wildman Palmer LLP, Boston,Massachusetts Delivery and Payment: It is expected that the Bonds will be delivered to The Depository Trust Company, or the offices of its custodial agent, against payment to the account of the Town in federal reserve funds on or about May 29, 2012. Issue Contacts: Jennifer Yarid,Treasurer,Town of North Andover, Telephone(978) 688-9552 David M. Eisenthal,Vice President,UniBank Fiscal Advisory Services,Inc., Telephone (508) 849-4222 Richard A. Manley, Jr.,Esq., Edwards Wildman Palmer LLP, Boston, Massachusetts. Telephone(617)239-0384 Additional Information: Refer to the Preliminary Official Statement dated May 3, 2012. ii EOFS ALE NOTIC � TOWN OF NORTH ANDOVER Massachusetts $4,508,348 GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2012 BONDS The Town of North Andover Massachusetts, will receive sealed and electronic proposals until 11:00 A.M. (Local Time), on Tuesday, May 15,2012 at UniBank Fiscal Advisory Services, Inc., Whitinsville, Massachusetts, for the purchase of the following described Bonds: $4,508,348 GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2012 BONDS, payable May 15 of the years and in the amounts as follows: Principal Principal Year Amount Year Amount 2022 $260,000 2013 $498,348 2023 100,000 2014 490,000 2024 100,000 2015 490,000 2025 100,000 2016 490,000 2026 100,000 2017 490,000 2027 100,000 2018 275,000 2028 100,000 2019 275,000 2029 100,000 2020 275,000 2021 265,000 The Bonds will be dated May 15, 2012. Interest from the date of the Bonds will be payable on November 15, 2012 and semi-annually thereafter on each May 15 and November 15. Principal of and interest on the Bonds will be paid as described below. The Bonds maturing in the years 2013 through 2020, inclusive, are not subject to redemption prior to their stated dates of maturity. The Bonds maturing on and after May 15, 2021 are subject to redemption prior to their stated dates of maturity, at the option of the Town, on and after May 15, 2020 either in whole or in part at any time, and if in part,by lot within a maturity, at par plus accrued interest to the date set for redemption. For the Bonds maturing on and after May 15, 2021,bidders may specify that all of the principal amount of such bonds, may in lieu of having separate maturity dates, be combined to comprise up to three Term Bonds, and shall be subject to mandatory redemption or mature at par as described above, in each of the years and in the principal amounts specified in the foregoing maturity schedule. Each mandatory redemption shall be allocated to the payment of the Term Bond having the nearest subsequent maturity date. Term Bonds, if any, shall be subject to mandatory redemption on May 15 in the year or years immediately prior to the stated maturity of such Term Bonds (the particular Bonds of such maturity to be redeemed to be selected by lot), as indicated in the foregoing maturity schedule at the principal amount thereof plus accrued interest to the redemption date, without premium. iii The Bonds will be issu ed b y means of a book-entry system with no physical distribution of the Bonds made to the public. One certificate for each maturity of the Bonds will be issued to The Depository Trust Company, New York, New York, (DTC), or its custodial agent, and immobilized in their custody. A book-entry system will be employed, evidencing ownership of the Bonds in principal amounts of $5,000 or integral multiples thereof, except for one denomination of $3,348 of the Bonds maturing in 2013, with transfers of ownership effected on the records of DTC and its participants pursuant to rules and procedures adopted by DTC and its Bonds, shall be required to deposit the Bonds r as a condition to delivery of the Bo q participants. The winning bidder, with DTC, registered in the name of Cede & Co. Principal of and interest on the Bonds will be payable to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants of DTC will be the responsibility of such participants and other nominees of beneficial owners. Neither the Town nor the Paying Agent will be responsible or liable for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants. The legality of the Bonds will be approved by Edwards Wildman Palmer LLP, Boston, Massachusetts, whose opinion will be furnished to the purchaser without charge. Electronic proposals will be submitted through i Dealo. If any provisions in this Notice of Sale conflict with information provided by i Deae, this Notice of Sale shall control. Further information about i Deals', including any fees charged, may be obtained from i Deal° at (212) 849-5000. The Town assumes no responsibility or liability for bids submitted through i Deae. An electronic bid made in accordance with this Notice of Sale shall be deemed an irrevocable offer to purchase the Bonds in accordance with the terms provided in this Notice of Sale and shall be binding upon the bidder as if made by a signed and sealed written bid delivered to the Town. Other bids, including bids by delivered telegram, should be sealed, marked "Proposal for Bonds" and addressed to Ms. Jennifer Yarid Treasurer Town of North Andover c/o UniBank Fiscal Advisory Services Inc. 49 Church Street Whitinsville Massachusetts 01588. Proposals delivered as specified will be accepted. Blank bid forms with signature may be sent to UniBank Fiscal Advisory Services, Inc. or faxed at (508) 234-1938 prior to submitting the bids, with actual bids telephoned to (508) 849-4222, at least one half hour prior to the 11:00 A.M. (local time) sale. UniBank Fiscal Advisory Services, Inc. will act as agent for the bidder in submitting the bids, but neither UniBank Fiscal Advisory Services, Inc. nor the Town is responsible for any errors with respect to bids submitted in this manner. A good faith deposit is not required. Bidders shall state the rate or rates of interest per annum which the Bonds are to bear in a multiple of 1/8th or 1/20th of I%but shall not state (a) more than stated foran interest other Bonds by more than 3%kNo bid of lessdthn par interest rate which exceeds the interest Y and accrued interest to date of delivery will be considered. As between proposals which comply with this Notice of Sale, the award will be to the bidder who offers to purchase all the Bonds at the lowest net effective interest rate to the Town. Such interest rate shall be determined on a true interest cost (TIC) basis, which shall mean that rate which, as of May 15, 2012, discounts semi-annually all future payments on account of principal and interest to the price bid, not including interest accrued to the date of delivery, which accrued interest until the b d paid hasbeen approved successful bybidder. the Treasurer award and t e Bonds to the winning bidder will not be effective Board of Selectmen. On or prior to the date of delivery of the Bonds, the successful bidder shall furnish to the Town a certificate acceptable to Bond Counsel generally to the effect that (i) as of May 15, 2012 (the "Sale Date"), the Purchaser had offered or reasonably expected to offer all of the Bonds to the general public (excluding bond houses, brokers, or similar persons acting in the capacity of underwriters or wholesalers) in a bona fide public offering iv at the paces set forth in such certificate, plus accrued interest, if any, (ii) such prices represent fair market prices of the Bonds as of the Sale Date, and (iii) as of the date of such certificate, all of the Bonds have been offere to the general public in a bona fide offering at the prices set forth in such certificate, and at least 10% of each maturity of the Bonds actually has been sold to the general public at such prices. To the extent the certifications described in the preceding sentence are not factually accurate with respect to the reoffering of the Bonds, Bond Counsel should be consulted by the bidder as to alternative certifications that will be suitable to establish the "issue price" of the Bonds for federal tax law purposes. If a municipal bond insurance policy or similar credit enhancement is obtained with value savings s on the Bonds resulting bidder, such ofin insurance premiums or other certify as to the net present g credit enhancement fees. The Town has not contracted for the issuance of any policy of municipal bond insurance for the Bonds. If the Bonds qualify for issuance of any such policy or commitment therefor, any purchase of such insurance or commitment shall be at the sole option and expense of the bidder. Proposals shall not be conditioned upon the issuance of any such policy or commitment. Any failure of the Bonds to be so insured or of any such policy or commitment to be issued shall not in any way relieve the purchaser of his contractual obligations arising from the acceptance of a proposal for the purchase of the Bonds. Should the successful bidder purchase municipal bond insurance, all expenses associated with such policy or commitment will be borne by the successful bidder, except for the fee paid to Standard & Poor's Ratings Services for the rating of the Bonds. Any such fee paid to Standard&Poor's Ratings Services would be borne by the Town. It shall be a condition to the obligation of the successful bidder to accept delivery of and pay for the Bonds that the bidder shall be furnished, without cost, with (a) the approving opinion of the firm of Edwards Wildman Palmer LLP of Boston, Massachusetts, substantially in the form of Appendix C of the Preliminary Official Statement dated May 3, 2012 included herein, (see "Tax Exemption" and Appendix C in the Preliminary Official Statement), (b) a certificate in form satisfactory to said firm dated as of the date of delivery of the Bonds and receipt of payment therefor to the effect that there is no litigation pending or, to the knowledge of the signers thereof, threatened affecting the validity of the Bonds or the power of the Town to levy and collect taxes to pay them, (c) a certificate of the Town Treasurer to the effect that, to the best of her knowledge and belief, both as of the date of sale and of the date of delivery of the Bonds, the Preliminary Official Statement referred to below does not contain any untrue statement of a material fact and does not omit to state a material fact necessary to make the statements made therein, in the the to circumstans as of the dahecof the Bondsm they were and not misleading; and (d) a Continuing Disclosure Certificate incorporated by reference in the Bonds. It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such numbers on any bond, nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for the Bonds. All expenses in relation to the printing of CUSIP numbers on the Bonds shall be paid for by the Town; provided, however that the Town assumes no responsibility for any CUSIP Service Bureau or other charge that may be imposed for the assignment of such numbers. In order to assist bidders in complying with Rule 15c2-12(b)(5) promulgated by the Securities and Exchange Commission, the Town will undertake to provide annual reports and notices of certain significant events. A description of this undertaking is set forth in the Preliminary Official Statement. The Bonds, in definitive form, will be delivered to the purchaser at DTC, or the offices of its custodial agent, on or about May 29, 2012. The Bonds will be designated as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986 as amended. V Additional information concerning the Town of North Andover and the Bonds is contained in the Preliminary Official Statement dated May 3, 2012, to which prospective bidders are directed. The Preliminary Official Statement is provided for informational purposes only and is not a part of this Notice of Sale. Such Preliminary Official Statement is deemed final by the Town as of its date for purposes of SEC Rule 15c 2-12(b)(1). Copies of the Preliminary Official Statement and a suggested form of proposal for the Bonds may be obtained from David M. Eisenthal, Vice President, UniBank Fiscal Advisory Services, Inc., 49 Church Street, Whitinsville,Bond Massachusetts 01588, telephone (508) 849-4222. Within seven bw ill besfurnished t following the succcessful bidders in accordance herewith, 75 copies of a Final Official Statement Additional copies may be obtained at the successful bidder's expense. The right is reserved to reject any or all bids and to reject any bid not complying with this Notice of Sale and, so far as permitted by law, to waive any irregularity with respect to any proposal. TOWN OF NORTH ANDOVER Massachusetts /s/Jennifer Yarid Treasurer Dated: May 3, 2012 Vi I� OFFICIAL STATEMENT TOWN OF NORTH ANDOVER MASSACHUSETTS $4,508,348 GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2012 BONDS INTRODUCTION This Official Statement is provided for the purpose of presenting certain information relating to the Town of North Andover, Massachusetts (the "Town") in connection with the sale of the $4,508,348 General Obligation Municipal Purpose Loan of 2012 Bonds dated May 15, 2012 (the 'Bonds") of the Town. The Bonds are being offered for sale at public bidding and a Notice of Sale dated May 3, 2012, has been furnished to prospective bidders. Reference is hereby made to the Notice of Sale for the terms and conditions of bidding. The Bonds will be general obligations of the Town for which its full faith and credit are pledged. They are not guaranteed by The Commonwealth of Massachusetts (the "Commonwealth") or any other entity. The security for the Bonds is more fully described under the caption Security and Remedies. See also the caption Opinion of Bond Counsel. Questions regarding information contained in this Official Statement or other matters should be directed to Jennifer Yarid, Town Treasurer (978) 688-9552, David M. Eisenthal, Vice President, UniBank Fiscal Advisory Services, Inc. (508) 849-4222, or Richard A. Manley, Jr., Edwards Wildman Palmer LLP (617) 239-0384. The information contained herein has been obtained from the sources indicated or from the Town. 1 II PART I i THE BONDS DESCRIPTION OF THE BONDS The Bonds will be dated May 15, 2012 and will mature on May 15 of the years and in the principal amounts as follows: Due Principal Due Principal May 15 Amount May 15 Amount 2013 $498,348 2022 $260,000 2014 490,000 2023 100,000 2015 490,000 2024 100,000 2016 490,000 2025 100,000 2017 490,000 2026 100,000 2018 275,000 2027 100,000 2019 275,000 2028 100,000 2020 275,000 2029 100,000 2021 265,000 The Bonds will bear interest at the rate or rates per annum specified by the successful bidder. Principal and semi-annual interest will be paid by U.S. Bank National Association, Boston, Massachusetts, or its successor, acting as paying agent (the "Paying Agent"). Interest from the date of the Bonds will be payable on November 15, 2012 and semi-annually thereafter on each May 15 and November 15. So long as The Depository Trust Company ("DTC"), New York, New York or its nominee, Cede & Co., is the Bondowner, such payments of principal and interest on the Bonds will be made directly to such Bondowner. Disbursement of such payments to the DTC Participants is the responsibility of DTC and disbursement of such payments to the Beneficial Owners is the responsibility of the DTC Participants and Indirect Participants, as more fully described herein. The Bonds are issuable only in fully registered form without coupons, and, when issued, will be registered in the name of Cede & Co., as Bondowner and nominee for DTC. DTC will act as securities depository for the Bonds. Purchases of the Bonds will be made in book-entry form, in the denomination of$5,000 or any integral multiple thereof, except for one denomination of $3,348 of the Bonds maturing in 2013. Purchasers will not receive certificates representing their interests in Bonds purchased. So long as Cede & Co. is the Bondowner, as nominee of DTC, references herein to the Bondowners or registered owner shall mean Cede & Co., as aforesaid, and shall not mean the Beneficial Owners (as defined herein) of the Bonds. (See Book-Entry Transfer System herein.) Record Date The record date for each payment of interest is the last business day of the month preceding the interest payment date, provided that, under certain circumstances, the Paying Agent may establish a special record date. The special record date may not be more than twenty (20) days before the date set for payment. The Paying Agent will mail notice of a special record date to the bondholders at least ten (10) days before the special record date. 2 Book-Entry Transfer System The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the Bonds. The Bonds will be issued in fully-registered form registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One-fully registered certificate will be issued for each maturity of the Bonds, each in the aggregate principal amount of such maturity, and each such certificate will be deposited with DTC. the world's largest securities depository, is a limited-purpose trust company organized under the New DTC, g York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org. Purchases of securities deposited with DTC must be made by or through Direct Participants, which will receive a credit for such securities on DTC's records. The ownership interest of each actual purchaser of each security deposited with DTC ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in securities deposited with DTC are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in securities deposited with DTC, except in the event that use of the book-entry system for such securities is discontinued. To facilitate subsequent transfers, all securities deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the securities deposited with it; DTC's records reflect only the identity of the Direct Participants to whose accounts such securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. 3 Redemption notices shall be sent to DTC. If less than all of a maturity is being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed. I Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to securities deposited with it unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the issuer of such securities or its paying agent as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the securities are credited on the record date (identified in a listing attached to the Omnibus Proxy). Principal and interest payments on securities deposited with DTC will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the issuer of such securities or its paying agent, on the payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC (nor its nominee), the issuer of such securities or its paying agent, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest to Cede &Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the issuer of such securities or its paying agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may,discontinue providing its services as depository with respect to securities held by it at any time by giving reasonable notice to the issuer of such securities or its paying agent. Under such circumstances, in the event that a successor depository is not obtained, physical certificates are required to be printed and delivered to Beneficial Owners. The Town may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, physical certificates will be printed and delivered to Beneficial Owners. The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the Town believes to be reliable,but the Town takes no responsibility for the accuracy thereof. DTC Practices The Town can make no assurances that DTC, Direct Participants, Indirect Participants or other nominees of the Beneficial Owners of the Bonds will act in a manner described in this Official Statement. DTC is required to act according to rules and procedures established by DTC and its participants which are on file with the Securities and Exchange Commission. AUTHORIZATION AND USE OF PROCEEDS $3,882,348 par amount of the Bonds fund purposes authorized under Article 27 of the 2011 Annual Town Meeting on June 7, 2011 as part of the Town's fiscal 2012 capital program. 4 The fiscal 2012 capital purposes funded are as follows: Par Purpose Amount Statute Roadway Improvements $ 342,192.14 Ch. 44, s.7(6) Fire Alarm Boxes and Panels 53,010.85 Ch. 44, s.7(14) Internet Telephone System 375,000.00 Ch. 44, s.7(9) Middle School Roof Replacement 746,174.05 Ch. 44, s.7(3A) Defibrillator Replacement 43,000.00 Ch. 44, s.7(9) Police Station Parking Lot and E 125,000.00 Ch. 44 Exterior Lighting Public Works Emergency Generator 38,000.00 Ch. 44, s.7(9) School Dept. Data Storage and Integration 82,000.00 Ch. 44, s. 7(28)(29) Vehicle Fuel Pump System 45,000.00 Ch. 44, s. 7(9) Dump Truck 182,578.96 Ch. 44, s.7(9) Sargent School Roof Replacement 291,124.00 Ch. 44, s.7(3A) Atkinson School Roof Replacement 531,268.00 Ch. 44, s.7(3A) Sewer Utility Truck 78,000.00 (1) Ch. 44, s.7(9) HVAC Equipment 690,000.00 (1) Ch. 44, s. 8(7C) Valve and Hydrant Replacement 260,000.00 (1) Ch. 44, s. 8(7C) Total $3,882,348.00 (1) Debt service expected to be supported by Enterprise Fund revenues. $225,000 par amount of the Bonds are authorized under Chapter 44, Section 8(7A), of the Massachusetts General Laws, as amended, and a vote of the Town on May 13, 2010 for the purpose of replacing water meters. Debt service for this purpose is expected to be supported by Enterprise Fund revenues. $224,000 par amount of the Bonds are authorized under Chapter 44, Section 7(3A), of the Massachusetts General Laws, as amended, and a vote of the Town on November 15, 2011 for the purpose of replacing the roof at the Middle School. $165,000 par amount of the Bonds are authorized under Chapter 44, Section 7(3A), of the Massachusetts General Laws, as amended, and a vote of the Town on May 12, 2010 for the purpose of installing a fire sprinkler system at the Kittredge School. Original authorization for this purpose was $375,000. $210,000 of the original authorization was rescinded at the November 15, 2011 town meeting. $12,000 par amount of the Bonds are authorized under Chapter 44, Section 7(3A), of the Massachusetts General Laws, as amended, and a vote of the Town on November 15, 2011 for the purpose of replacing the roof at the Sargent School. REDEMPTION Bonds maturing in the years 2013 through 2020, inclusive, are not subject to redemption prior to their stated dates of maturity. Bonds maturing on and after May 15, 2021 are subject to redemption prior to maturity, at the option of the Town, on and after May 15, 2020, either in whole or in part at any time, and if in part,by lot within a maturity, at par plus accrued interest to the date set for redemption. 5 So long as DTC is the registered owner of the Bonds, notice of any redemption of Bonds, prior to their maturities, specifying the Bonds (or portions thereof) to be redeemed shall be mailed to DTC not more than 60 days nor less than 30 days prior to the redemption date. Any failure on the part of DTC to notify the DTC Participants of the redemption or failure on the part of the DTC Participants or of a nominee of a Beneficial Owner (having received notice from a DTC Participant or otherwise) to notify the Beneficial Owner shall not affect the validity of the redemption. If moneys for the redemption are held by the Paying Agent on the redemption date and if notice of the redemption shall have been duly mailed,then from and after the redemption date interest on the Bonds (or portions thereof) called for redemption shall cease to accrue. Mandatory Redemption Term Bonds, if any are specified by the successful bidder, will be subject to mandatory redemption on May 15 in each year or years immediately prior to the stated maturity of such Term Bonds (the particular Bonds of such maturity to be redeemed to be selected by lot) as indicated on the cover page of the Preliminary Official Statement at the principal amount thereof plus accrued interest to the redemption date. SECURITY AND REMEDIES Full Faith and Credit. General obligation bonds and notes of a Massachusetts city or town constitute a pledge of its full faith and credit. Payment is not limited to a particular fund or revenue source. Except for"qualified bonds" as described above(see"Serial Bonds and Notes"under"TYPES OF OBLIGATIONS"herein) and setoffs of state distributions as described below (see "State Distributions" herein), no provision is made by the Massachusetts statutes for priorities among bonds and notes and other general obligations, although the use of certain moneys may be restricted. Tax Levy. The Massachusetts statutes direct the municipal assessors to include annually in the tax levy for the next fiscal year "all debt and interest charges matured and maturing during the next fiscal year and not otherwise provided for and all amounts necessary to satisfy final judgments". Specific provision is also made for including in the next tax levy payments of rebate amounts not otherwise provided for and payment of notes in anticipation of federal or state aid,if the aid is no longer forthcoming. The total amount of a tax levy is limited by statute. However, the voters in each municipality may vote to exclude from the limitation any amounts required to pay debt service on indebtedness incurred before November 4, 1980. Local voters may also vote to exempt specific subsequent bond issues from the limitation. (See "Tax Limitations" Under "PROPERTY TAX" herein.) In addition, obligations incurred before November 4, 1980 may be constitutionally entitled to payment from taxes in excess of the statutory limit. Except for taxes on the increased value of certain property in designated development districts which may be pledged for the payment of debt service on bonds issued to finance economic development projects within such districts, no provision is made for a lien on any portion of the tax levy to secure particular bonds or notes or bonds and notes generally (or judgments on bonds or notes) in priority to other claims. Provision is made, however, for borrowing to pay judgments, subject to the General Debt Limit. (See "DEBT LIMITS" herein.) Subject to the approval of the State Director of Accounts for judgments above $10,000, judgments may also be paid from available funds without appropriation and included in the next tax levy unless other provision is made. Court Proceedings. Massachusetts cities and towns are subject to suit on their general obligation bonds and notes and courts of competent jurisdiction have power in appropriate proceedings to order payment of a judgment on the bonds or notes from lawfully available funds or, if necessary, to order the city or town to take lawful action to obtain the required money, including the raising of it in the next annual tax levy, within the limits prescribed by law. (See "Tax Limitations" under "PROPERTY TAX" herein.) In exercising their discretion as to whether to 6 enter such an order, the courts could take into account all relevant factors including the current operating needs of the city or town and the availability and adequacy of other remedies. The Massachusetts Supreme Judicial Court has stated in the past that a judgment against a municipality can be enforced by the taking and sale of the property of any inhabitant. However, there has been no judicial determination as to whether this remedy is constitutional under current due process and equal protection standards. Restricted Funds. Massachusetts statutes also provide that certain water, gas and electric, community antenna television system, telecommunications, sewer,parking meter and passenger ferry fee receipts may be used only for water, gas and electric, community antenna television system, telecommunications, community preservation and affordable housing, sewer, parking, mitigation of ferry service impacts, community preservation and affordable housing purposes,respectively; accordingly,moneys derived from these sources may be unavailable to pay general obligation bonds and notes issued for other purposes. A city or town that accepts certain other statutory provisions may establish an enterprise fund for a utility, health care, solid waste, recreational or transportation facility and for police or fire services;under those provisions any surplus in the fund is restricted to use for capital expenditures or reduction of user charges. In addition, subject to certain limits, a city or town may annually authorize the establishment of one or more revolving funds in connection with use of certain revenues for programs that produce those revenues; interest earned on a revolving fund is treated as general fund revenue. A city or town may also establish an energy revolving loan fund to provide loans to owners of privately-held property in the city or town for energy conservation and renewable energy projects, and may borrow to establish such a fund. The loan repayments and interest earned of the investment of amounts in the fund shall be credited to the fund. Also, the annual allowance for depreciation of a gas and electric plant or a community antenna television and telecommunications system is restricted to use for plant or system renewals and improvements, for nuclear decommissioning costs, and costs of contractual commitments, or, with the approval of the State Department of Telecommunications and Energy, to pay debt incurred for plant or system reconstruction or renewals. Revenue bonds and notes issued in anticipation of them may be secured by a prior lien on specific revenues. Receipts from industrial users in connection with industrial revenue financings are also not available for general municipal purposes. State Distributions. State grants and distributions may in some circumstances be unavailable to pay general obligation bonds and notes of a city or town in that the State Treasurer is empowered to deduct from such grants and distributions the amount of any debt service paid on "qualified bonds" (See "Serial Bonds and Notes" under "TYPES OF OBLIGATIONS" herein) and any other sums due and payable by the city or town to the Commonwealth or certain other public entities, including any unpaid assessments for costs of any public transportation authority(such as the Massachusetts Bay Transportation Authority or a regional transit authority) of which it is a member, for costs of the Massachusetts Water Resources Authority if the city or town is within the territory served by the Authority, or for charges necessary to meet obligations under the Commonwealth's Water Pollution Abatement or Drinking Water Revolving Loan Programs, including such charges imposed by another local governmental unit that provides wastewater collection or treatment services or drinking water services to the city or town. If a city or town is (or is likely to be) unable to pay principal or interest on its bonds or notes when due, it is required to notify the State Commissioner of Revenue. The Commissioner shall in turn, after verifying the inability, certify the inability to the State Treasurer. The State Treasurer shall pay the due or overdue amount to the paying agent for the bonds or notes, in trust,within three days after the certification or one business day prior to the due date (whichever is later). This payment is limited,however,to the estimated amount otherwise distributable by the Commonwealth to the city or town during the remainder of the fiscal year (after the deductions mentioned in the foregoing paragraph). If for any reason any portion of the certified sum has not been paid at the end of the fiscal year,the State Treasurer shall pay it as soon as practicable in the next fiscal year to the extent of the estimated distributions for that fiscal year. The sums so paid shall be charged (with interest and administrative costs) against the distributions to the city or town. 7 li The foregoing does not constitute a pledge of the faith and credit of the Commonwealth. The Commonwealth has not agreed to maintain existin g levels of state distributions, and the direction to use estimated distributions to pay debt service may be subject to repeal by future legislation. Moreover, adoption of the annual appropriation act has sometimes been delayed beyond the beginning of the fiscal year and estimated distributions which are subject to until the appropriated. ' n ma appropriation y be unavailable to pay local debt service y are Bankruptcy. Enforcement of a claim for payment of principal or interest on general obligation bonds or notes would be subject to the applicable provisions of Federal bankruptcy laws and to the provisions of other statutes, if any, hereafter enacted by the Congress or the State legislature extending the time for payment or imposing other constraints upon enforcement insofar as the same may be constitutionally applied. Massachusetts municipalities are not currently authorized by the Massachusetts General Laws to file a petition for bankruptcy under Federal Bankruptcy laws. In cases involving significant financial difficulties faced by a single city,town, or regional school district, the Commonwealth has enacted special legislation to permit the appointment of a fiscal overseer, finance control board or, in the most extreme cases, a state receiver. In a limited number of these situations, such special legislation has also authorized the filing of federal bankruptcy proceedings, with the prior approval of the Commonwealth. In each case where cl such distressed city,st expired at the district.termination no such Commonwealth's oversight of the financially filings have been approved or made. OPINION OF BOND COUNSEL A copy of the legal opinion of the firm of Edwards Wildman Palmer LLP, of Boston, Massachusetts (see Appendix C), will be furnished to the successful bidder. The opinion will be dated and given on and will speak only as of the date of original delivery of the Bonds to the successful bidder. The scope of engagement of Bond Counsel does not extend to passing upon or assuming responsibility for the accuracy or adequacy of any statements made in this Official Statement other than matters expressly set forth as their opinion and they make no representation that they have independently verified the same. TAX EXEMPTION In the opinion of Edwards Wildman Palmer LLP, Bond Counsel to the Town ("Bond Counsel"), based upon an analysis of existing laws, regulations, rulings, and court decisions, and assuming, among other matters, compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 (the "Code"). Bond Counsel is of the further opinion that interest on the Bonds is not a specific preference item for purposes of the federal individual or corporate alternative minimum taxes. Bond Counsel expresses no opinion as to whether such interest is included in adjusted current earnings when calculating corporate alternative minimum taxable income. In the opinion of Bond Counsel, the Bonds are "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code. Bond Counsel expresses no opinion regarding any other federal tax consequences arising with respect to the ownership or disposition of, or the accrual or receipt of interest on the Bonds. The Code imposes various requirements relating to the exclusion from gross income for federal income tax purposes of interest on obligations such as the Bonds. Failure to comply with these requirements may result in interest on the Bonds being included in gross income for federal income tax purposes, possibly from the date of original issuance of the Bonds. The Town has covenanted to comply with such requirements to ensure that interest on the Bonds will not be included in federal gross income. The opinion of Bond Counsel assumes compliance with these requirements. 8 Bond Counsel is also of the opinion that, under existing law, interest on the Bonds is exempt from Massachusetts personal income taxes, and the Bonds are exempt from Massachusetts personal property taxes. Bond Counsel has not opined as to other Massachusetts tax consequences arising with respect to the Bonds. Prospective Bondholders should be aware, however, that the Bonds are included in the measure of Massachusetts estate and inheritance taxes, and the Bonds and the interest thereon are included in the measure of certain Massachusetts corporate excise and franchise taxes. Bond Counsel has not opined as to the taxability of the Bonds or the income therefrom under the laws of any state other than Massachusetts. A complete copy of the proposed form of opinion of Bond Counsel is set forth in Appendix C hereto. To the extent the issue price of any maturity of the Bonds is less than the amount to be paid at maturity of such Bonds (excluding amounts stated to be interest and payable at least annually over the term of such Bonds), the difference constitutes "original issue discount," the accrual of which, to the extent properly allocable to each owner thereof, is treated as interest on the Bonds which is excluded from gross income for federal income tax purposes and is exempt from Massachusetts personal income taxes. For this purpose, the issue price of a particular maturity of the Bonds is the first price at which a substantial amount of such maturity of the Bonds is sold to the public (excluding bond houses, brokers, or similar persons or organizations acting in the capacity of underwriters, placement agents or wholesalers). The original issue discount with respect to any maturity of the Bonds accrues daily over the term to maturity of such Bonds on the basis of a constant interest rate compounded semi-annually (with straight-line interpolations between compounding dates). The accruing original issue discount is added to the adjusted basis of such Bonds to determine taxable gain or loss upon disposition (including sale, redemption, or payment on maturity) of such Bonds. Bondholders should consult their own tax advisors with respect to the tax consequences of ownership of Bonds with original issue discount, including the treatment of purchasers who do not purchase such Bonds in the original offering to the public at the first price at which a substantial amount of such Bonds is sold to the public. Bonds purchased, whether at original issuance or otherwise, for an amount greater than the stated principal amount to be paid at maturity of such Bonds, or, in some cases, at the earlier redemption date of such Bonds ("Premium Bonds"), will be treated as having amortizable bond premium for federal income tax purposes and Massachusetts personal income tax purposes. No deduction is allowable for the amortizable bond premium in the case of obligations, such as the Premium Bonds, the interest on which is excluded from gross income for federal income tax purposes. However, a Bondholder's basis in a Premium Bond will be reduced by the amount of amortizable bond premium properly allocable to such Bondholder. Holders of Premium Bonds should consult their own tax advisors with respect to the proper treatment of amortizable bond premium in their particular circumstances. Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken) or events occurring (or not occurring) after the date of issuance of the Bonds may adversely affect the value of, or the tax status of interest on,the Bonds. Prospective Bondholders should be aware that from time to time, legislation is or may be proposed which, if enacted into law, could result in interest on the Bonds being subject directly or indirectly to federal income taxation, or otherwise prevent Bondholders from realizing the full benefit provided under current federal tax law of the exclusion of interest on the Bonds from gross income. To date, no such legislation has been enacted into law. However, it is not possible to predict whether any such legislation will be enacted into law. Further, no assurance can be given that any pending or future legislation, including amendments to the Code, if enacted into law, or any proposed legislation, including amendments to the Code, or any future judicial, regulatory or administrative interpretation or development with respect to existing law, will not adversely affect the market value and marketability of, or the tax status of interest on, the Bonds. Prospective Bondholders are urged to consult their own tax advisors with respect to any such legislation, interpretation, or development. 9 Although Bond Counsel is of the opinion that interest on the Bonds is excluded from gross income for federal income tax purposes and is exempt from Massachusetts personal income taxes, the ownership or disposition of, or the accrual or receipt of interest on, the Bonds may otherwise affect the federal or state tax liability of a Bondholder. Among other possible consequences of ownership or disposition of, or the accrual or receipt of interest on, the Bonds, the Code requires recipients of certain social security and certain railroad retirement P benefits to take into account receipts or accruals of interest on the Bonds in determining the portion of such benefits that are included in gross income. The nature and extent of all such other tax consequences will depend upon the particular tax status of the Bondholder or the Bondholder's other items of income or deduction. Except as indicated in the following paragraph, Bond Counsel expresses no opinion regarding any such other tax consequences, and Bondholders should consult with their own tax advisors with respect to such consequences. RATING Application has been made to Standard & Poor's Ratings Services for a rating on the Bonds. Such rating, if obtained, will reflect only the agency's view and will be subject to revision or withdrawal which could affect the market price of the Bonds. CONTINUING DISCLOSURE In order to assist the Underwriters in complying with Rule 15c2-12(b)(5) promulgated by the Securities and Exchange Commission (the "Rule"), the Town will covenant for the benefit of owners of the Bonds to provide certain financial information and operating data relating to the Town by not later than 270 days after the end of each fiscal year, (the "Annual Report"), and to provide notices of the occurrence of certain enumerated events. The covenants will be contained in a Continuing Disclosure Certificate, the proposed form of which is provided in Appendix D. The Certificate will be executed by the signers of the Bonds, and 'incorporated by reference in the Bonds. Except as described in the following paragraph, the Town has not failed to comply, in any material respect, with any previous undertakings to provide financial information and operating data or notices of significant events in accordance with the Rule within the past five years. The Town failed to file unaudited financial statements for the fiscal year ended June 30, 2007 by the due date for such filing. Audited financial statements for the fiscal year ended June 30, 2007 were filed on or about April 17, 2008,upon their completion. 10 PART II THE TOWN The Town of North Andover (the "Town") is located in Essex County, approximately 24 miles north of Boston. d the City of Haverhill, on the east by the Town of It is bordered on the north by the City of Methuen an Boxford, on the west by the Town of Andover and the City of Lawrence, and on the south by the Towns of Middleton and North Reading. North Andover occupies a land area of 26.63 square miles and, according to the 2000 Federal Census, has a population of 27,202. Incorporated as a town in 1855, North and Andover Town Manager by an open town meeting form of government, a five member Board of Selectmen pursuant to a Home Rule Charter, which went into effect on October 1, 1986. CONSTITUTIONAL STATUS AND FORM OF GOVERNMENT Massachusetts cities and towns are subject to the plenary legislative power of the Commonwealth. As stated by the Supreme Judicial Court: A town is not an independent sovereignty. It is merely a subordinate agency of State government. It is a creature of the Commonwealth, from which are derived all its powers and those of its voters and officers. Cities and towns provide general governmental services at the local level. Municipalities were traditionally authorized to exercise only those powers granted by the State legislature, but Massachusetts adopted a Home Rule Amendment to its Constitution in 1966, under which a city or town may exercise by ordinance or by-law any power which the State legislature could confer upon it, provided that the ordinance or by-law is consistent with the laws enacted by the State legislature. Certain powers are excluded from home rule and may still be exercised only when authorized by State law; these powers include the power to levy taxes, the power to borrow money, and the power to enact private or civil laws governing civil relationships except as an incident to the exercise of an independent municipal power. Under the Home Rule Amendment the State legislature may enact general laws relating to a class of two or more municipalities but (except in limited circumstances) may enact a special law relating to a particular city or town only on request of the city or town or on recommendation of the governor and passage by a two-thirds vote of both houses of the legislature. An amendment to the State Constitution provides that any law imposing additional costs on two or more cities or towns by regulating aspects of municipal employment will not be effective within a city or town until the city council or town meeting accepts the law. Local acceptance is not required if the legislature has either passed the law by a two-thirds vote or provided that the additional costs would be assumed by the State. Cities and towns may change their form of government by adopting home rule charters or amending existing charters. A town of less than 12,000 population may not change to a city form of government and a town of less than 6,000 inhabitants may not change from the open town meeting form of government to a limited or representative town meeting form. Cities are generally governed by a city council and an elected mayor who has the power to veto council actions; the council may override a mayoral veto by a two-thirds vote of the councilors. Some cities are governed by a city council and an appointed city manager who has no power to veto council actions; some municipalities, although still called "towns", have adopted a similar form of government with a town council and town manager or administrator. Provision is often made for a referendum on council actions, and for initiation of measures,upon petition of a sufficient number of voters. 11 I Most towns are governed by open town meetings in which any voter may participate. Others have an elected representative town meeting, often with public officers serving as ex officio members of the town meeting. Provision is usually made for a referendum on actions of the representative town meeting upon petition of a sufficient number of voters. Administrative affairs are generally managed by a board of three or more selectmen, sometimes with the assistance of a town manager or executive secretary. School affairs of cities and towns are administered by an elected school committee, except in those towns whose educational functions are carried out entirely through a regional school district. GOVERNING BODIES AND OFFICERS Manner of Term Office Name Selection and Term Expires Selectmen Tracy M. Watson m Chairman Elected/3 years 2014 William Gordon Elected/3 years 2015 Richard M. Vaillancourt Elected/3 years 2015 Rosemary Connelly Smedile Elected/3 years 2013 Donald Stewart Elected/3 years 2014 Town Manager Andrew W. Maylor Appointed/3 years 2015 Town Accountant/Budget Director Lyne M. Savage Appointed/3 years 2015 Treasurer/Collector Jennifer Yarid Appointed Indefinite Town Clerk Joyce A. Bradshaw Appointed Indefinite Director of Public Works Bruce Thibodeau Appointed Indefinite Director of Community Development & Services Curt Bellavance Appointed Indefinite Town Counsel Urbelis, Fieldsteel &Bailin, LLP Appointed Indefinite SERVICES The Town provides general governmental services for the territory within its boundaries, including police and fire protection, disposal of rubbish, public education in grades kindergarten through twelve, water and sewer service, street maintenance, library services, parks, and recreational facilities. The Town is also a member of the Greater Lawrence Regional Vocational Technical High School District, the Greater Lawrence Sanitary District and the Merrimac Valley Regional Transit Authority. The Town's Public Works Department provides water and sewer services to commercial, industrial and residential users in the Town. Approximately 95% of the Town is provided with water service and approximately 75% of the Town is provided with sewer service. The Town's water and sewer services are provided through an Enterprise Fund accounting system. The Town sets its water and sewer rates to cover the operating and capital costs of providing these services. 12 The North Andover Housing Authority was established in 1949 to address the housing needs of low and moderate income families in the Town, as well as to administer programs to achieve overall housing objectives in a fiscally responsible manner. The Authority administers publicly-owned units and rental subsidy programs through the use of federal and state funds, working to coordinate the private and public sectors to provide affordable housing for low and moderate income families residing in the Town. Legislation enacted in 1997 abolished the county governments of Franklin and Middlesex Counties as of July 1, 1997, with their assets, functions, debts and other obligations being assumed by the Commonwealth. The abolishment of the Middlesex County government was in part response to a default by the County in the payment of general obligation notes of the County. The legislation also abolished the county governments of Hampden and Worcester Counties as of July 1, 1998. Legislation enacted in 1998 abolished the county governments of Hampshire, Essex and Berkshire counties as of January 1, 1999, July 1, 1999 and July 1, 2000, respectively. The legislation requires the state secretary for administration and finance to establish a plan to recover the Commonwealth's expenditures for the liabilities and other debts assumed and paid by the Commonwealth on behalf of an abolished county. Unless these provisions are changed by further legislation, the state treasurer shall assess upon each city and town within the jurisdiction of an abolished county an amount not exceeding or equal to the county tax paid by each such city and town for the fiscal year immediately prior to the abolishment of the county (or two years prior in the case of Essex County) until such expenditures by the Commonwealth are recovered. It is possible that similar legislation will be sought to provide for the abolishment of county government in other counties. AUTHORIZATION OF GENERAL OBLIGATION BONDS AND NOTES Serial bonds and notes are authorized by a two-thirds vote of the town meeting. Refunding bonds and notes are authorized by the selectmen. Borrowings for some purposes require State administrative approval. When serial bonds or notes have been authorized, bond anticipation notes may be issued by the officers authorized to issue the serial bonds or notes. Temporary loans in anticipation of the revenue of the current fiscal year in which the debt is incurred or in anticipation of authorized federal and state aid generally may be incurred by the Treasurer with the approval of the Selectmen. DEBT LIMITS General Debt Limit. The General Debt Limit of the Town consists of a Normal Debt Limit and a Double Debt Limit. The Normal Debt Limit for the Town is 5 percent of the valuation of taxable property as last equalized by the State Department of Revenue. The present debt limit of the Town, based on the 2010 equalized valuation, is $223,017,205. The Town can authorize debt up to this amount without State approval. It can authorize debt up to twice this amount (the Double Debt Limit) with the approval of the Municipal Finance Oversight Board. There are many categories of general obligation debt which are exempt from and do not count against the General Debt Limit. Among others, these exempt categories include revenue anticipation notes and grant anticipation notes; emergency loans; loans exempted by special laws; certain school bonds, sewer bonds, solid waste disposal facility bonds and economic development bonds supported by tax increment financing; and subject to special debt limits, bonds for water (limited to 10 per cent of equalized valuation), housing, urban renewal and economic development (subject to various debt limits), and electric, gas, community antenna television systems, and telecommunications systems (subject to separate limits). Revenue bonds are not subject to these debt limits. The General Debt Limit and the special debt limit for water bonds apply at the time the debt is authorized. The other special debt limits generally apply at the time the debt is incurred. 13 i Revenue Anticipation Notes. The amount borrowed in each fiscal year by the issue of revenue anticipation i notes is limited to the tax levy of the prior fiscal year, together with the net receipts in the prior fiscal year from the motor vehicle excise and certain payments made by the Commonwealth in lieu of taxes. The fiscal year ends on June 30. Notes may mature in the following fiscal year, and notes may be refunded into the following fiscal year to the extent of the uncollected, unabated current tax levy and certain other items, including revenue deficits, overlay deficits, final judgments and lawful unappropriated expenditures, which are to be added to the next tax levy,but excluding deficits arising from a failure to collect taxes of earlier years (see "Taxation to Meet Deficits" herein). In any event, the period from an original borrowing to its final maturity cannot exceed one year. TYPES OF OBLIGATIONS General Obligations. Massachusetts cities and towns are authorized to issue general obligation indebtedness of these types: Serial Bonds and Notes. These are generally required to be payable in equal or diminishing annual principal amounts beginning no later than the end of the next fiscal year commencing after the date of issue and ending within the terms permitted by law. A level debt service schedule, or a schedule that provides for a more rapid amortization of principal than level debt service, is permitted. The principal amounts of certain economic development bonds supported by tax increment financing may be payable in equal, diminishing or increasing amounts beginning within 5 years after the date of issue. The maximum terms of serial bonds and notes vary from one year to 40 years, depending on the purpose of the issue. The maximum terms permitted are set forth in the statutes. In addition, for many projects, the maximum term may be determined in accordance with useful life guidelines promulgated by the Massachusetts Department of Revenue ("DOR"). Serial bonds and notes may be issued for the purposes set forth in the statutes. In addition, serial bonds and notes may be issued for any other public work, improvement, or asset not specifically listed in the Statutes that has a useful life or at least 5 years. Bonds or notes may be made callable and redeemed prior to their maturity, and a redemption premium may be paid. Refunding bonds or notes may be issued subject to the maximum applicable term measured from the date of the original bonds or notes and must produce present value savings over the debt service of the refunded bonds. Generally, the first required annual payment of principal of the refunding bonds cannot be later than the first principal payment of any of the bonds or notes being refunded thereby, however, principal payments made before the first principal payment of any of the bonds or notes being refunded thereby may be in any amount. Serial bonds may be issued as "qualified bonds"with the approval of the state Municipal Finance Oversight Board composed of the State Treasurer, the State Auditor, the Attorney General and the Director of Accounts, subject to such conditions and limitations (including restrictions on future indebtedness) as may be required by the Board. Qualified bonds may mature not less than 10 nor more than 30 years from their dates and are not subject to the amortization requirements described above. The State Treasurer is required to pay the debt service on qualified bonds and thereafter to withhold the amount of the debt service paid by the State from state aid or other state payments; administrative costs and any loss of interest income to the State are to be assessed upon the city or town. Tax Credit Bonds and Notes. Subject to certain provisions and conditions, the officers authorized to issue bonds or notes may designate any duly authorized issue of bonds or notes as "tax credit bonds" to the extent such bonds and notes are otherwise permitted to be issued with federal tax credits or other similar subsidies for all or a portion of the borrowing costs. Tax credit bonds may be made payable without regard to the annual installments required by any other law, and a sinking fund may be established for the payment of such bonds. Any investment that is part of such a sinking fund may mature not later than the date fixed for payment or redemption of the applicable bonds. 14 Bond Anticipation Notes. These generally must mature within two years of their original dates of issuance but may be refunded from time to time for a period not to exceed five years from their original dates of issuance, provided that for each year that the notes are refunded beyond the second year they must be paid in part from revenue funds in an amount at least equal to the minimum annual payment that would have been required if the school projects, however, notes may be bonds had been issued at the end of the second year. For certain sc p refunded from time to time for a period not to exceed seven years without having to pay any portion of the principal of the notes from revenue funds. The maximum term of bonds issued to refund bond anticipation notes is measured (except for certain school projects) from the date of the original issue of the notes. Revenue Anticipation Notes. These are issued to meet current expenses in anticipation of taxes and other revenues. They must mature within one year but, if payable in less than one year,may be refunded from time to time up to one year from the original date of issue. Grant Anticipation Notes. These are issued for temporary financing in anticipation of federal grants and state and county reimbursements. They must generally mature within two years but may be refunded from time to time as long as the municipality remains entitled to the grant or reimbursement. Revenue Bonds. Cities and towns may issue revenue bonds for solid waste disposal facilities, for projects financed under the Commonwealth's Water Pollution Abatement or Drinking Water Revolving Loan Programs and for certain economic development projects supported by tax increment financing. In addition to general obligation bonds and notes, cities and towns having electric departments may issue electric revenue bonds, and notes in anticipation of such bonds, subject to the approval of the State Department of Telecommunications and Energy. The Town does not have an electric department. 15 it DEBT (1) The following shows the direct debt outstanding as of May 15, 2012, including the Bonds: General Obligation Bonds: Within General Debt Limit (2) Sewers &Drains $ 12,964,356 Land Acquisition 1,875,000 Schools 11,210,506 Other Building 5,672,883 Streets Sidewalks &Parking 1,031,020 Departmental Equipment 4,042,012 Architectural &Engineering 120,000 Other Inside General 504,752 The Bonds 3,333,348 Total Within Debt Limit $40,753,877 Outside General Debt Limit: Sewers 934,228 Schools 6,280,000 Water 10,879,077 The Bonds 1,175,000 Total Outside Debt Limit 19,268,305 Total Bonds (3) $60,022,182 Temporary Loans in Anticipation o£ Revenue $ 0 Bonds 0 Grants 0 Total Temporary Loans $ 0 $60,022,182 Total Direct Debt (1) Principal amount only. Excludes lease and installment purchase obligations, overlapping debt, unfunded pension liability, and otherpost-employment benefits liability. (2) At the present time, the normal general debt limit is$223,017,205 and the double general debt limit is$446,034,410. (3) $12,463,365 par amount of currently outstanding bonds has been exempted from the provisions of Proposition 2 Y2. AUTHORIZED UNISSUED DEBT AND PROSPECTIVE FINANCING Following delivery of the Bonds, the Town will have $2,166,568 par amount of authorized unissued debt. $2,091,568 of this amount was authorized at the 2011 annual town meeting to fund the Town's fiscal 2012 capital program and $75,000 is for a revenue billing system. The $2,091,568 of fiscal 2012 capital program authorization not issued is expected to be extinguished by grants to be received from the Massachusetts School Building Authority. The Town expects to rescind authorization for the revenue billing system and for $266,000 for the Atkinson School Windows at its June 2012 town meeting. 16 i FIVE YEARS OUTSTANDING DEBT (1) As of June M 2011 2010 2009 2008 2007 Long-Term Indebtedness Within the General Debt Limit: Sewers &Drains $14,077,787 $15,039,658 $16,322,997 $17,079,067 $14,250,137 Land Acquisition 2,155,000 2,420,000 2,680,000 3,247,625 3,662,625 Schools 13,777,061 15,388,164 17,566,442 17,485,819 23,072,580 Other Building 6,289,250 6,390,726 3,344,141 2,541,060 2,983,385 Streets Sidewalks &Parking 1,367,989 1,229,358 1,195,407 1,233,801 633,715 Departmental Equipment 4,653,697 2,915,655 3,451,758 1,804,604 1,892,659 Architectural &Engineering Services 150,000 472,187 521,864 835,818 1,149,772 Athletic&Recreational Facilities 0 0 7,525 45,225 82,908 Other Inside General 529,374 622,096 714,818 536,700 604,800 Total Within the General Debt Limit 43,000,157 44,477,844 45,804,952 44,809,719 48,332,581 Outside the General Debt Limit: Sewers 988,960 1,226,577 1,200,730 1,410,803 1,621,236 Schools 7,580,000 8,845,000 10,065,000 11,315,000 17,600,000 Water 12,063,125 12,123,149 14,261,509 15,951,701 11,216,499 Total Outside the General Debt Limit 20,632,086 24,194,726 25,527,238 28,677,504 30,437,735 Total Long-Term Indebtedness $63,632,243 $68,672,570 $71,332,190 $73,487,223 $78,770,316 Short-Term Indebtedness Revenue Anticipation Notes $ 0 $ 0 $ 0 $ 0 $ 0 Grant Anticipation Notes 0 0 0 0 0 Bond Anticipation Notes 0 0 0 2,144,430 13,044,445 Total Short-Term Indebtedness 0 0 0 2,144,430 13,044,445 Total Outstanding Indebtedness $63,632.243 $68,672,570 $71.332.190 $75,631.653 $91,814,761 (1) Principal amount only. Excludes lease and installment purchase obligations, overlapping debt and unfunded pension liability. BONDED DEBT VS. POPULATION VALUATIONS AND INCOME (000 omitted) As of June 30 2011 2010 2009 2008 2007 Amount (1)(000 omitted) $63,632 $68,673 $71,332 $73,487 $78,770 Per Capita (2) 2,244 $2,474 $2,592 $2,659 $2,850 Percent of Assessed Valuation (3) 1.54% 1.62% 1.60% 1.62% 1.69% Percent of Equalized Valuation (4) 1.43% 1.40% 1.45% 1.58% 1.69% Per Capita as a Percent of Personal Income (2) per Capita 6.54% 7.05% 7.55% 7.74% 8.30% (1) Outstanding principal on general obligation bonds. Excludes lease and installment purchase obligations, overlapping debt, unfunded pension liability, and other post-employment benefits liability. (2)Source• U.S.Department of Commerce,Bureau of the Census-latest applicable actuals or estimates. (3) The assessed valuation used here is the assessed valuation for that fiscal year. (4) The equalized valuation used here is the equalized valuation in effect for that fiscal year. 17 i ANNUAL DEBT SERVICE (11 Cumulative Fiscal Outstanding as of 05/15/11 Current Issue Total Debt % Principal Year Principal(2) Interest 2 Principal Interest 3 Service Refired 4 2012 $ 1,505,000 $ 108,721 - - $ 1,613,721 2.5% 2013 8,322,139 1,835,273 $498,348 $112,709 10,768,468 17.2 2014 7,781,843 1,565,762 490,000 100,250 9,937,855 31.0 2015 6,507,204 1,305,854 490,000 88,000 8,391,058 42.6 2016 5,396,770 1,077,383 490,000 75,750 7,039,903 52.4 2017 4,747,058 893,588 490,000 63,500 6,194,146 61.2 2018 4,787,453 717,005 275,000 51,250 5,830,708 69.6 2019 3,037,957 555,971 275,000 44,375 3,913,303 75.1 2020 2,413,573 449,191 275,000 37,500 3,175,264 79.6 2021 2,109,301 368,779 265,000 30,625 2,773,705 83.6 2022 1,595,146 304,553 260,000 24,000 2,183,699 86.7 2023 1,306,108 249,440 100,000 17,500 1,673,048 89.0 2024 1,307,191 203,904 100,000 15,000 1,626,095 91.3 2025 1,313,397 156,530 100,000 12,500 1,582,427 93.7 2026 1,079,729 113,164 100,000 10,000 1,302,893 95.7 2027 931,188 78,180 100,000 7,500 1,116,868 97.4 2028 897,777 46,247 100,000 5,000 1,049,024 99.0 2029 375,000 19,313 100,000 2,500 496,813 99.8 2030 100,000 4,000 0 0 104,000 100.0°o Total $55,513,834 $10,052.856 $4,508,348 $697,959 $70,772,996 (1) Excludes short-term debt, lease and installment purchase obligations, overlapping debt, unfunded pension liability, and other post-employment liability. (2)Principal and interest on $12 463 365 of previously issued debt is exempt from the limitations of Proposition 21/2. (3)Assumes average coupon rate of 2.50% (4)Includes current issue of the Bonds. REVENUE ANTICIPATION BORROWING The Town has not had to borrow in anticipation of revenue in any of the last five fiscal years. CONTRACTS Municipal contracts are generally limited to currently available appropriations. A city or town generally has authority to enter into contracts for the exercise of any of its corporate powers for any period of time deemed to serve its best interests, but generally only when funds are available for the first fiscal year; obligations for succeeding fiscal years generally are expressly subject to availability and appropriation of funds. Municipalities have specific authority in relatively few cases to enter into long-term contractual obligations that are not subject to annual appropriation, including contracts for refuse disposal and sewage treatment and disposal. Municipalities may also enter into long-term contracts in aid of housing and renewal projects. There may be implied authority to make other long-term contracts required to carry out authorized municipal functions, such as contracts to purchase water from private water companies. Municipal contracts relating to solid waste disposal facilities may contain provisions requiring the delivery of minimum amounts of waste and payments based thereon and requiring payments in certain circumstances without regard to the operational status of the facilities. 18 Municipal electric departments have statutory power to enter into long-term contracts for joint ownership and operation of generating and transmission facilities and for the purchase or sale of capacity, including contracts requiring payments without regard to the operational status of the facilities. The Town does not have an electric department. Cities and towns are authorized to lease (as lessee) off-street parking facilities, school buildings, hospital equipment, data process equipment, energy conservation equipment and educational equipment for periods ranging up to 10 years. They may also lease equipment, with option to purchase, for a period up to 10 years. Contracts may also be made for the installment purchase of energy conservation equipment over a period up to 10 years. Cities and towns may also lease various properties as lessor. The Town has not entered into any lease or installment purchase contracts of a substantial nature. Pursuant to the Home Rule Amendment to the Massachusetts Constitution, cities and towns may also be empowered to make other contracts and leases. OVERLAPPING DEBT (1) Assessments for Operations Authorized and Debt Service Outstanding Unissued FY 2012 Greater Lawrence Regional Vocational- Technical School District(2) $27,490,000 $0 $ 243,954 Greater Lawrence Sanitary District (3) $24,427,417 $0 1,467,854 (1) Excludes temporary loans in anticipation of revenue. Omits debt of the Commonwealth. (2) Source: Greater Lawrence Regional Vocational-Technical School District. Debt is as of May 15, 2012. Other member communities are Andover, Lawrence, and Methuen. Towns may organize regional school districts to carry out general of specialized educational functions. Pursuant to special laws a number of cities may also participate in regional school districts, primarily for vocational education. The operating expenses and debt service of regional school districts are apportioned among the member municipalities in accordance with agreements establishing the districts, subject to the provisions of Education Reform Act of 1993. The Commonwealth has approved a school building assistance grant to the District reimbursing 85.5%of eligible project costs, including interest. (3) Source: The District.Debt is as of May 15, 2012. Other member communities are Andover, Lawrence, Methuen, and Salem, New Hampshire. Each member community pays for its proportionate share of the District's operating costs based on the percent of wastewater received from each community. The District recently completed construction of a sludge bioprocessing facility. The Town's share of capital costs for the District is 7 percent. This percentage is set by statute. RETIREMENT PLAN The Massachusetts General Laws provide for the establishment of contributory retirement systems for state employees, for teachers and for county, city and town employees other than teachers. Teachers are assigned to a separate statewide teachers' system and not to the city and town systems. For all employees other than teachers, this law is subject to acceptance in each city and town. Substantially all employees of an accepting city or town are covered. If a town has a population of less than 10,000 when it accepts the statute, its non-teacher employees participate through the county system and its share of the county cost is proportionate to the aggregate annual rate of regular compensation of its covered employees. In addition to the contributory systems, cities and towns provide non-contributory pensions to a limited number of employees, primarily persons who entered service prior to July 1, 1937 and their dependents. The Public Employee Retirement Administration Commission ("PERAC") provides oversight and guidance for and regulates all state and local retirement systems. 19 The obligations of a city or town, whether direct or through a county system, are contractual legal obligations and are required to be included in the annual tax levy. If a city or town, or the county system of which it is a member, has not established a retirement system funding schedule as described below,the city or town is required to provide for the payment of the portion of its current pension obligations which is not otherwise covered by employee contributions and investment income. "Excess earnings," or earnings on individual employees' retirement accounts in excess of a predetermined rate, are required to be set aside in a pension reserve fund for future, not current, pension liabilities. Cities and towns may voluntarily appropriate to their system's pension reserve fund in any given year up to five percent of the preceding year's tax levy. The aggregate amount in the fund may not exceed ten percent of the equalized valuation of the city or town. If a city or town, or each member city and town of a county retirement system,has accepted the applicable law,it is required to annually appropriate an amount sufficient to pay not only its current pension obligations, but also a portion of its future pension liability. The portion of each such annual payment allocable to future pension obligations is required to be deposited in the pension reserve fund. The amount of the annual city or town appropriation for each such system is prescribed by a retirement system funding schedule which is periodically reviewed and approved by PERAC. Each system's retirement funding schedule is designed to reduce the unfunded actuarial pension liability of the system to zero by not later than June 30, 2030, with annual increases in the scheduled payment amounts of not more than 4.5 percent. The funding schedule must provide that payment in any year of the schedule is not less than 95 percent of the amount appropriated in the previous fiscal year. City, town and county systems which have an approved retirement funding schedule receive annual pension funding grants from the Commonwealth for the first 16 years of such funding schedule. Pursuant to recent legislation, a system (other than the state employees' retirement system and the teachers' retirement system)which conducts an actuarial valuation as of January 1, 2009, or later, may establish a revised schedule which reduces the unfunded actuarial liability to zero by not later than June 30, 2040, subject to certain conditions. If the schedule is so extended under such provisions and a later updated valuation allows for the development of a revised schedule with reduced payments, the revised schedule shall be adjusted to provide that the appropriation for each year shall not be less than that for such year under the prior schedule,thus providing for a shorter schedule rather than reduced payments. City, town and county systems may choose to participate in the Pension Reserves Investment Trust Fund (the "PRIT Fund"), which receives additional state funds to offset future pension costs of participating state and local systems. If a local system participates in the PRIT Fund, it must transfer ownership and control of all assets of its system to the Pension Reserves Investment Management Board, which manages the investment and reinvestment of the PRIT Fund. Cities and towns with systems participating in the PRIT Fund continue to be obligated to fund their pension obligations in the manner described above. The additional state appropriations to offset future pension liabilities of state and local systems participating in the PRIT Fund are required to total at least 1.3 percent of state payroll. Such additional state appropriations are deposited in the PRIT Fund and shared by all participating systems in proportion to their interests in the assets of the PRIT Fund as of July 1 for each fiscal year. Cost-of-living increases for each local retirement system may be granted and funded only by the local system, and only if it has established a funding schedule. Those statutory provisions are subject to acceptance by the local retirement board and approval by the local legislative body,which acceptance may not be revoked. Recent legislation provides that upon local acceptance and subject to certain conditions and limitations, a municipality may establish and implement an early retirement incentive program. Any plan for such program was to be submitted to PERAC by September 27,2010. The Town did not submit such a plan. Substantially all full-time employees of the Town (except teachers and administrators under contract employed by the School Department) participate in the Essex County Public Employees Retirement System ("PERS"), a contributory retirement system that is partially funded by employee contributions. The Town meets it share of cost primarily on a pay-as-you-go basis by contributing annually the amount determined by the State Division 20 of Insurance. The retirement system covers substantially all municipal employees except school teachers, whose pensions are paid by the Commonwealth. The annual contributions of the Town to the Retirement System for the current and last four fiscal years are as follows: Fiscal Year Amount 2012 $3,002,374 2011 2,803,785 2010 2,596,530 2009 2,468,667 2008 2,261,142 Cost-of-living increases for each local retirement system may be granted and funded only by the local system, and only if it has established a funding schedule. Those statutory provisions are subject to acceptance by the local retirement board and approval by the local legislative body, which acceptance may not be revoked. Essex County has accepted this new legislation. As of January 1, 2008 (the most recent available information), the unfunded accrued actuarial liability of the System was approximately$143,750,589. The foregoing data does not include the retirement system costs or liabilities attributable to employees of the county or the retirement system costs or liabilities of any other entity of which the Town is a constituent part. Other Post-Employment Benefits In addition to pension benefits, cities and towns may provide retired employees with health care and life insurance benefits. The portion of the cost of such benefits paid by cities or towns is generally provided on a pay-as-you-go basis. The pay-as-you-go cost to the Town for such benefits for fiscal year 2011 was $2,206,290. The Governmental Accounting Standards Board ("GASB") recently promulgated its Statement Nos. 43 and 45, which will for the first time require public sector entities to report the future costs of these non-pension, post- employment benefits in their financial statements. These new accounting standards do not require pre-funding such benefits, but the basis applied by the standards for measurement of costs and liabilities for these benefits is conservative if they continue to be funded on a pay-as-you-go basis and will result in larger yearly cost and liability accruals than if such benefits were pre-funded in a trust fund in the same manner as traditional pension benefits. Cities and towns that choose to self-insure all or a portion of the cost of the health care benefits they provide to employees and retirees may establish a trust fund for the purpose of paying claims, and Massachusetts General Laws were recently amended to provide cities and towns with legal authority to establish a trust fund for the purpose of pre-funding other post employment benefits liability in the same manner as traditional pension benefits. The Town's OPEB expenditures are financed on a pay-as-you-go-basis from annual appropriations and the Town's current financial statements do not report the financial impact of OPEB until the benefits are paid. During fiscal year 2009, the Town had approximately 217 retirees that received such benefits. For the year ended June 30, 2009, the cost of these benefits totaled approximately$3,978,109. The Town contracted with Nyhart of Indianapolis, Indiana, a benefits consulting firm, to complete a GASB 45 Financial Report for the year ended June 30, 2009. According to this report, at a discount rate of 4.50%, the present value of future benefits totals $190,998,820. The actuarial accrued liability is $114,931,210, current normal cost is $5,804,674, and the present value of future normal costs is $70,262,936. The annual required 21 contribution to cover normal cost and the actuarial accrued liability is $10,964,222. Based on current funding of $3,978,109, the current unfunded portion of the annual required contribution is $6,986,613. The Town expects to complete a new GASB 45 Financial Report for the fiscal year ending June 30, 2011 sometime during fiscal year 2012. PROPERTY TAXATION AND VALUATION Tax Rate and Valuation - General. Property is classified for the purpose of taxation according to its use. The legislature has in substance created three classes of taxable property: (1) residential real property, (2) open space land, and (3) all other (commercial, industrial and personal property). Within limits, cities and towns are given the option of determining the share of the annual levy to be borne by each of the three categories. The share required to be borne by residential real property is at least 50 per cent of its share of the total taxable valuation; the effective rate for open space must be at least 75 per cent of the effective rate for residential real property; and the share of commercial, industrial and personal property must not exceed 175 percent of their share of the total valuation. A city or town may also exempt up to 20 percent of the valuation of residential real property (where used as the taxpayer's principal residence) and up to 10 percent of the valuation of commercial real property (where occupied by certain small businesses). Property may not be classified in a city or town until the State Commissioner of Revenue certifies that all property in the city or town has been assessed at its fair cash value. Such certification must take place every three years, or pursuant to a revised schedule as may be issued by the Commissioner. Related statutes provide that certain forest land, agricultural or horticultural land (assessed at the value it has for these purposes) and recreational land (assessed on the basis of its use at a maximum of 25 percent of its fair cash value) are all to be taxed at the rate applicable to commercial property. Land classified as forest land is valued for this purpose at five percent of fair cash value but not less than ten dollars per acre. In order to determine appropriate relative values for the purposes of certain distributions to and assessments upon cities and towns, the Commissioner of Revenue biennially makes her own redetermination of the fair cash value of the taxable property in each municipality. This is known as the "equalized valuation" (see Debt Limits herein). VALUATIONS The following shows the assessed and equalized valuations for the current and most recent fiscal years: For Fiscal Year 2012 2011 2010 (1) 2009 2008 Real Property(2) $4,023,628,185 $4,008,723,850 $4,124,920,797 $4,355,309,100 $4,452,463,247 Personal Property(2) 121 400,010 112 827,760 108 138,260 99,814,430 82,002,220 Total Assessed Valuation $4,145,028,195 $4,121,551,610 $4,233,059,057 $4,455,123,530 4,534,465,467 Equalized Valuation (3) $4,460,344,100 $4,460,344,100 $4,913,038,200 $4,913,038,200 $4,648,968,500 Percent of Total Assessed to Equalized Valuation 92.9% 92.4% 86.2% 90.7% 97.5% (1)Revaluation year. (2)As of January 1, 2012, 2011, 2010, 2009 and 2008 respectively. (3)Based on equalized valuation in effect for each year. 22 The following table shows the breakdown of the total assessed valuation for fiscal years 2012, 2011 and 2010 by classification: Fiscal Fiscal Fiscal 2012 % 2011 % 2010 % Assessed of Assessed of Assessed of Class Valuation Total Valuation Total Valuation Total Residential $3,586,332,274 86.5% $3,563,558,199 86.5% $3,670,178,348 87.8% Commercial 278,839,111 6.7 283,140,851 6.9 286,494,949 6.3 Industrial 158,456,800 3.8 162,024,800 3.9 168,247,500 3.7 Personal Property 121,400,010 2.9 112,827,760 2.7 108,138,260 2_2 Total $4,145N8,195 100.0% $4,121,551,610 100.0% $4,233,059,057 100.% TAX RATES The following shows the average tax rates per $1,000 of assessed valuation, and the estimated fall value rate based on the equalized valuations for the current and most recent fiscal years: Estimated Fiscal Actual Full Value Year Tax Rate Rate 2012 Residential/Open Space $13.92 $13.59 Commericial/Industrial.Pers. 19.16 2011 Residential 13.52 13.13 Commercial/Industrial/Pers. 18.63 2010 Residential 12.74 11.54 Commercial/Industrial/Pers. 17.69 2009 Residential 11.76 11.21 Commercial/Industrial/Pers. 16.69 2008 Residential 11.40 11.39 Commercial/Industrial/Pers. 13.78 LARGEST TAXPAYERS (1) The following shows the ten largest taxpayers: Fiscal 2012 Nature Assessed Amount of % of Name of Business Valuation Tax Total Lew AIMCO (Royal Crest). Apartments $56,739,590 $789,815 1.30% National Grid Utility 40,458,720 775,189 1.28 Edgewood Retirement Comm. Congregate Care/Nursing Home 36,689,710 702,975 1.16 Mansur Investment Office/Manufacturing 24,646,000 472,217 0.78 Delta/Delta Realty Trust Shopping Mall 18,866,010 361,473 0.60 Ozzy Properties Office 16,295,900 312,229 0.52 Wood Ridge Homes Co-op Housing 11,327,970 217,044 0.36 RCG North Andover Mills Office 10,228,000 195,968 0.32 North Andover 2004 Office 9,601,600 183,967 0.30 Eaglewood Properties Retail 9,200,800 176,287 0.29 Total $226,553,330 $4,187,165 6.91% (1)All of the above taxpayers are current in their real and personal property taxes. 23 I TAX LEVIES Levy-General. The principal tax of Massachusetts cities and towns is the tax on real and personal property. The amount to be levied in each year is the amount appropriated or required by law to be raised for municipal expenditures less estimated receipts from other sources and less appropriations voted from funds on hand. The total amount levied is subject to certain limits prescribed by law; for a description of those limits see "Tax Limitations" herein. As to the inclusion of debt service and final judgments, see Security and Remedies herein. The estimated receipts for a fiscal year from sources other than the property tax may not exceed the actual receipts during the preceding fiscal year from the same sources unless approved by the State Commissioner of Revenue. Excepting special funds the use of which is otherwise provided for by law, the deduction for appropriations voted from funds on hand for a fiscal year cannot exceed the "free cash" as of the beginning of the prior fiscal year as certified by the State Director of Accounts plus up to nine months' collections and receipts on account of earlier years' taxes after that date. Subject to certain adjustments, free cash is surplus revenue less uncollected overdue property taxes from earlier years. Although an allowance is made in the tax levy for abatements (see "Abatements and Overlay" herein) no reserve is generally provided for uncollectible real property taxes. Since some of the levy is inevitably not collected, this creates a cash deficiency which may or may not be offset by other items (see "Taxation to Meet Deficits"herein). Taxation to Meet Deficits. As noted elsewhere (see "Abatements and Overlay" herein) overlay deficits, i.e. tax abatements in excess of the overlay included in the tax levy to cover abatements, are required to be added to the next tax levy. It is generally understood that revenue deficits, i.e. those resulting from non-property tax revenues being less than anticipated, are also required to be added to the tax levy (at least to the extent not covered by surplus revenue). Amounts lawfully expended since the prior tax levy and not included therein are also required to be included in the annual tax levy. The circumstances under which this can arise are limited since municipal departments are generally prohibited from incurring liabilities in excess of appropriations except for major disasters, mandated items, contracts in aid of housing and renewal projects and other long-term contracts. In addition, utilities must be paid at established rates and certain established salaries, e.g. civil service, must legally be paid for work actually performed,whether or not covered by appropriations. In the opinion of Bond Counsel, cities and towns are authorized to appropriate sums, and thus to levy taxes, to cover deficits arising from other causes, such as "free cash" deficits arising from a failure to collect taxes. This is not generally understood, however, and it has not been the practice to levy taxes to cover free cash deficits. Except to the extent that such deficits have been reduced or eliminated by subsequent collections of uncollected taxes (including sales of tax titles and tax possessions), lapsed appropriations, non-property tax revenues in excess of estimates, other miscellaneous items or funding loans authorized by special act, they remain in existence. Tax Limitations. Chapter 59, Section 21C of the General Laws, also known as Proposition 2 1/2, imposes two separate limits on the annual tax levy of a city or town. The primary limitation is that the tax levy cannot exceed 2 1/2 percent of the full and fair cash value. If a city or town exceeds the primary limitation, it must reduce its tax levy by at least 15 percent annually until it is in compliance, provided that the reduction can be reduced in any year to not less than 7 1/2 percent by majority vote of the voters, or to less than 7 1/2 percent by two-thirds vote of the voters. For cities and towns at or below the primary limit, a secondary limitation is that the tax levy cannot exceed the maximum levy limit for the preceding fiscal year as determined by the State Commissioner of Revenue by more than 2 1/2 percent, subject to exceptions for property added to the tax rolls or property which has had an increase, other than as part of a general revaluation, in its assessed valuation over the prior year's valuation. 24 ii This "growth" limit on the tax levy may be exceeded in any year by a majority vote of the voters, but an increase in the secondary or growth limit under this procedure does not permit a tax levy in excess of the primary limitation, since the two limitations apply independently. In addition, if the voters vote to approve taxes in excess of the "growth" limit for the purpose of funding a stabilization fund, such increased amount may only be taken into account for purposes of calculating the maximum levy limit in each subsequent year if the board of selectmen of a town or the city council of a city votes by a two-thirds vote to appropriate such increased amount in such subsequent year to the stabilization fund. The applicable tax limits may also be reduced in any year by a majority vote of the voters. The State Commissioner of Revenue may adjust any tax limit "to counterbalance the effects of extraordinary, non-recurring events which occurred during the base year". The statute further provides that the voters may exclude from the taxes subject to the tax limits and from the calculations of the maximum tax levy (a) the amount required to pay debt service on bonds and notes issued before November 4, 1980, if the exclusion is approved by a majority vote of the voters, and (b) the amount required to pay debt service on any specific subsequent issue for which similar approval is obtained. Even with voter approval, the holders of the obligations for which unlimited taxes may be assessed do not have a statutory priority or security interest in the portion of the tax levy attributable to such obligations. It should be noted that Massachusetts General Laws Chapter 44, Section 20 requires that the taxes excluded from the levy limit to pay debt service on any such bonds and notes be calculated based on the true interest cost of the issue. Accordingly,the Department of Revenue limits the amount of taxes which may be levied in each year to pay debt service on any such bonds and notes to the amount of such debt service, less a pro rata portion of any original issue premium received by the city or town that was not applied to pay costs of issuance. Voters may also exclude from the Proposition 2%2 limits the amount required to pay specified capital outlay expenditures. In addition, the city council of a city, with the approval of the mayor if required, or the board of selectmen or the town council of a Town may vote to exclude from the Proposition 21/2 limits taxes raised in lieu of sewer or water charges to pay debt service on bonds or notes issued by the municipality (or by an independent authority, commission or district) for water or sewer purposes, provided that the municipality's sewer or water charges are reduced accordingly. In addition, Proposition 2 1/2 limits the annual increase in the total assessments on cities and towns by any county, district, authority, the Commonwealth or any other governmental entity (except regional school districts, the MWRA, and certain districts for which special legislation provides otherwise) to the sum of(a) 2.50 percent of the prior year's assessments and (b) "any increases in costs, charges or fees for services customarily provided locally or for services subscribed to at local option". Regional water districts, regional sewerage districts and regional veteran districts may exceed these limitations under statutory procedures requiring a two-thirds vote of the district's governing body and either approval of the local appropriating authorities (by two-thirds vote in districts with more than two members or by majority vote in two-member districts) or approval of the registered voters in a local election (in the case of two-member districts). Under the statute any State law to take effect on or after January 1, 1981 imposing a direct service or cost obligation on a city or town will become effective only if accepted or voluntarily funded by the city or town or if State funding is provided. Similarly, State rules or regulation imposing additional costs on a city or town or laws granting or increasing local tax exemptions are to take effect only if adequate State appropriations are provided. These statutory provisions do not apply to costs resulting from judicial decisions. Pledged Taxes. Taxes on certain property in designated development districts may be pledged for the payment of costs of economic development projects within such districts and may therefore be unavailable for other municipal purposes (see "Tax Increment Financing for Development Districts"herein). 25 Initiative Petitions. Various proposals have been made in recent years for legislative amendments to the Massachusetts Constitution to impose limits on state and local taxes. To be adopted such amendments must be approved by two successive legislatures and then by the voters at a state election. CALCULATION OF TAX LEVIES AND LEVY LIMITS The following table shows the details of the calculation of the tax levies for the most recent fiscal years: (000 omitted) For Fiscal Year 2012 2011 2010 2009 2008 Appropriations $87,593 $87,019 $83,299 $85,801 $85,333 Other Local Expenditures 555 309 898 524 63 State& County Charges 1,881 2,068 2,336 2,307 2,183 Overlay Reserve 460 316 372 319 354 Total Gross Amount to be Raised 90,489 89,712 86,905 88,950 87,933 Less Estimated Receipts & Other Revenue: Estimated Receipts from State 8,607 8,757 8,158 10,310 10,173 Estimated Receipts - Local 21,015 21,365 21,835 22,283 22,457 Available Funds Appropriated Free Cash 0 273 0 0 851 Other Available Funds 240 324 196 0 0 Free Cash & Other Revenue Used to Reduce the Tax Rate 0 418 0 1,283 1,490 Total Estimated Receipts &Revenue 29,863 31,138 30,189 33,876 34,973 Net Amount To Be Raised (Tax Levy) $58,575 56 715 55 075 52 961 The following shows the calculation of levy limits for the most recent fiscal years: (000 omitted) For Fiscal Year 2012 2011 2010 2009 2008 Primary Levy Limit (1) $103,626 $103,039 $105,826 $111,378 $113,362 Prior Fiscal Year Levy Limit 55,489 53,569 51,654 49,875 46,116 2.5% Levy Growth 1,387 1,339 1,291 1,247 1,153 New Growth (2) 738 580 624 533 955 Overrides 0 0 0 0 1,650 Growth Levy Limit 57,614 55,489 53,569 51,654 49,875 Debt Exclusions 3,037 3,100 3,170 3,422 3,098 Capital Exclusions 0 0 0 0 0 Other Adjustments 0 0 0 0 0 Tax Levy Limit 60,651 58,589 56,740 55,077 52,973 Tax Levy 60,626 58,575 56,715 55,075 52,961 Unused Levy Capacity(3) $ 24 $ 14 $ 24 $ 2 $ 11 Unused Primary Levy Capacity (4) $46,012 $47J 50 52 257 $59,724 $63,487 (1) 2.5%of assessed valuation. (2) Allowed addition for new valuations certified by the Department of Revenue. (3) Tax Levy Limit less Tax Levy. (4) Primary Levy Limit less Growth Levy Limit. 26 TAX COLLECTIONS AND ABATEMENTS Payment Dates. The taxes for each fiscal year generally are due in two installments on November 1 (subject to deferral if tax bills are sent out late) and May 1, unless a city or town accepts a statute providing for quarterly tax payments. Under the statute, preliminary tax payments are to be due on August 15 and November 1 with payment of the actual tax bill (after credit is given for the preliminary payments) in installments on February 15 and May 1 if actual tax bills are mailed by December 31. The Town voted to implement quarterly tax billing as of July 1, 1991. Interest accrues on delinquent taxes at the rate of 14 per cent per annum. Lien. Real property (land and buildings) is subject to a lien for the taxes assessed upon it subject to any paramount federal lien and subject to bankruptcy and insolvency laws. (In addition, real property is subject to a lien for certain unpaid municipal charges or fees.) If the property has been transferred, an unenforced lien expires on the fourth December 31 after the end of the fiscal year to which the tax relates. If the property has not been transferred by the fourth December 31, an unenforced lien expires upon a later transfer of the property. Provision is made, however, for continuation of the lien where it could not be enforced because of a legal impediment. Personal Liability. The persons against whom real or personal property taxes are assessed are personally liable for the tax (subject to bankruptcy and insolvency laws.) In the case of real property, this personal liability is effectively extinguished by sale or taking of the property as described in"Taking and Sale"herein. The following shows the total tax levy, the reserve for abatements, the net levy and the amounts collected during each fiscal year and as of a more recent date for the most recent fiscal years: For Fiscal Year 2012 2011 2010 2009 2008 Total Levy $60,626,359 $58,574,724 $56,715,432 $55,074,898 $52,961,163 Overlay Reserve for Abatements 459,973 316,384 371,669 319,197 353,952 Net Tax Tevy (1) $60,166,386 $58,258,340 $56,343,763 54,755,701 52,607,211 Amount collected during Fiscal Year Payable (2) NA $57,433,038 $55,434,744 $53,598,367 $51,363,007 Percent of Net Tax Levy NA 98.58% 98.39% 97.89% 97.63% Amount collected through 2/15/12 (2) $43,955,895 $57,820,206 $556,047,104 $54,686,670 $52,507,309 Percent of Net Tax Levy 73.06% 99.25% 99.47% 99.87% 99.81% (1) Net after deduction of overlay reserve for abatements. (2) Actual collections of levy less refunds and amounts refundable but including proceeds of tax, titles and tax possessions attributed to such levy but not including abatements or other credits. Abatements and Overlay. A city or town is authorized to increase each tax levy by an amount approved by the State Commissioner of Revenue as an "overlay" to provide for tax abatements. If abatements are granted in excess of the applicable overlay, the excess is required to be added to the next tax levy. Abatements are granted where exempt real or personal property has been assessed or where taxable real or personal property has been overvalued or disproportionately valued. The assessors may also abate uncollectible personal property taxes. They may abate real and personal property taxes on broad grounds (including inability to pay) with the approval of the State Commissioner of Revenue. But uncollected real property taxes are ordinarily not written off until they become municipal "tax titles" by purchase at the public sale or by taking, at which time the tax is written off in full by reserving the amount of the tax and charging surplus. 27 The following shows the abatements granted during the fiscal year as well as through a more recent date for the most recent fiscal years: For Fiscal Year 2012 2011 2010 2009 2008 Tax L y( ) Levy 1 $60,626,359 $58,574,724 $56,715,432 $55,074,898 $52,961,163 Overlay Reserve for Abatements 459,973 316,384 316,384 319,197 353,952 Percent of Tax Levy 0.8% 0.5% 0.7% 0.6% 0.7% Abatement Granted: During Fiscal Year Tax Levy NA $251,375 $318,087 $272,993 $213,894 Through 2/15/12 $114,194 251,799 396,726 324,836 320,775 Taking and Sale. Massachusetts law permits a municipality either to sell by public sale (at which the municipality may become the purchaser) or to take real property for nonpayment of taxes. In either case the property owner can redeem the property by paying the unpaid taxes, with interest and other charges, but if the right of redemption is not exercised within six months (which may be extended an additional year in the case of certain installment payments), it can be foreclosed by petition to the Land Court. Upon foreclosure, a tax title purchased or taken by the municipality becomes a "tax possession" and may be held and disposed of in the same manner as other land held for municipal purposes. Sale of Tax Receivables. Cities and towns are authorized to sell delinquent property tax receivables by public sale or auction, either individually or in bulk. TAXES OUTSTANDING For Fiscal Year 2012 2011 2010 2009 2008 Aggregate (1) $570,662 $676,323 $783,546 $1,631,060 $1,599,095 For Current Year(1) $256,788 $479,057 $232,361 $1,168,416 $1,220,977 Tax Titles &Possessions $2,195,958 $2,337,844 $1,997,408 $1,371,734 $1,415,731 (1) Through fiscal year end, except fiscal 2012, which is through February 15, 2012. (2) Excludes tax titles, tax possessions and abated taxes. Includes taxes in litigation, if any. TOWN FINANCES Budget and Appropriation Process The annual appropriations of the Town are ordinarily made at the annual meeting, which takes place in April. Appropriations may also be voted at special meetings. The Finance Committee (also the Board of Selectmen) is required to submit reports and recommendations on proposed expenditures at the annual town meeting. Under certain circumstances and subject to certain limits and requirements, the city council of a city, upon the recommendation of the mayor, may transfer amounts appropriated for the use of one department (except for a municipal light department or a school department) to another appropriation for the same department or for the use of any other department. In a town, town meeting may at any time vote to transfer any amount previously appropriated to any other authorized use by law, and, under certain circumstances and subject to certain limits and requirements, the selectmen of a town, with the concurrence of the finance committee, may transfer amounts appropriated for the use of any department to any other appropriation for the same department or to any other department. 28 Water and sewer department expenditures are included in the budgets adopted by town meetings but electric and gas department funds may be appropriated by the municipal light boards. Under legislation enacted in 1981 any city or town which accepts the legislation may provide that the appropriation for the operating costs of any department may be offset, in whole or in part, by estimated receipts from fees charged for services provided by the department. It is assumed that this general provision does not alter the pre-existing power of an electric or gas department to appropriate its own receipts. The school budget is limited to the total amount appropriated by the town meeting, but the school committee retains full power to allocate the funds appropriated. State legislation known as the Education Reform Act of 1993, as amended, imposes certain minimum expenditure requirements on municipalities with respect to funding for education and related programs and may affect the level of State aid to be received for education. The requirements are determined on the basis of formulas affected by various measures of wealth and income, enrollments, prior levels of local spending and state aid, and other factors. In fiscal 1994 through budgeted 2012, the Town's net school spending exceeded the minimum required local contribution. State and county assessments, the overlay for abatements in excess of overlays, principal and interest not otherwise provided for and final judgments are included in the tax levy whether or not included in the budget. Revenues are not required to be set forth in the budget but estimated non-tax revenues are taken into account by the assessors in fixing the tax levy. (See Property Taxation and Valuation herein.) Budget Comparison The following table sets forth the general governmental budgets for fiscal years 2008 through 2012: 2012 2011 2010 2009 2008 General Government $2,183 $2,229 $2,718 $2,650 $2,321 Public Safety 8,806 8,923 8,926 8,737 8,340 Public Health and Sanitation 982 942 897 891 728 Public Works 4,029 3,910 3,922 4,014 3,685 Schools 36,917 36,985 36,762 36,660 32,079 Culture/Recreation 828 828 813 822 686 Support Services 1,197 1,048 - - - Employee Benefits 14,173 12,335 10,520 11,734 10,183 Unclassified (1) 2,886 3,133 4,222 3,060 3,287 Interest and Debt 7,217 6,913 6,557 8,373 9,549 Totals 1792,19 77 246 75 335 76 942 70 859 (1)Includes overlay, state assessments, liability insurance, transfers to Stabilization Fund, transfers for deficits, and the assessment for the Greater Lawrence Regional Vocational Technical School District. 29 i STATE AID In addition to grants for specified capital purposes (some of which are payable over the life of the bonds issued for the projects), the Commonwealth provides financial assistance to cities and towns for current purposes. Payments to cities and towns are derived primarily from a percentage of the State's personal income, sales and use and corporate excise tax receipts, together with the net receipts from the State Lottery. A municipality's state aid entitlement is based on a number of different formulas, of which the "schools" and "lottery" formulas are the most important. Both of the major formulas tend to provide more state aid to poorer communities. None of the programs have a termination date under existing law, and while a formula might indicate that a particular amount of state aid is owed, the amount of state aid actually paid is limited to the amount appropriated by the state legislature. The state annually estimates state aid, but the actual state aid payments may vary from the estimate. In the fall of 1986,both the State Legislature(by statute repealed as of July 1, 1999) and the voters (by initiative petition) placed limits on the growth of state tax revenues. Although somewhat different in detail, each measure essentially limited the annual growth in state tax revenues to an average rate of growth in wages and salaries in the Commonwealth over the three previous calendar years. If not amended, the remaining measure could restrict the amount of state revenues available for state aid to local communities. The following table sets forth the amount of state aid to the Town in recent years as well as the amount budgeted for 2012: Fiscal Year Total State Aid 2012 (budgeted) $8,138,481 2011 (unaudited) 8,215,797 2010 7,693,927 2009 7,877,022 2008 8,246,640 STATE SCHOOL BUILDING ASSISTANCE PROGRAM Under its school building assistance program, the Commonwealth of Massachusetts provides grants to cities, towns and regional school districts for school construction projects. Until July 26, 2004, the State Board of Education was responsible for approving grants for school projects and otherwise administering the program. Grant amounts ranged from 50% to 90% of approved project costs. Municipalities generally issued bonds to finance the entire project cost, and the Commonwealth disbursed the grants in equal annual installments over the term of the related bonds. Pursuant to legislation which became effective on July 26, 2004, the state legislature created the Massachusetts School Building Authority (the "Authority") to finance and administer the school building assistance program. The Authority has assumed all powers and obligations of the Board of Education with respect to the program. In addition to certain other amounts, the legislation dedicates a portion of Commonwealth sales tax receipts to the Authority to finance the program. Projects previously approved for grants by the State Board of Education are entitled to receive grant payments from the Authority based on the approved project cost and reimbursement rate applicable under the prior law. The Authority has paid and is expected to continue to pay the remaining amounts of the grants for such projects either in annual installments to reimburse debt service on bonds issued by the municipalities to finance such projects or as lump sum payments to contribute to the defeasance of such bonds. 30 Projects on the priority waiting list as of July 1, 2004 are also entitled to receive grant payments from the Authority based on the eligible project costs and reimbursement rates applicable under the prior law. With limited exceptions, the Authority is required to fund the grants for such projects in the order in which they appear on the waiting list. Grants for any such projects that have been completed or substantially completed have been paid and are expected to continue to be paid by the Authority in lump sum payments, thereby eliminating the need for the Authority to reimburse interest expenses that would otherwise be incurred by the municipalities to permanently finance the Authority's share of such project costs. Interest on debt issued by municipalities prior to July 1, 2004 to finance such project costs, and interest on temporary debt until receipt of the grant, is included in the approved costs of such projects. Grants for any such projects that have not yet commenced or that are underway have been and are expected to continue to be paid by the Authority as project costs are incurred by the municipality pursuant to a project funding agreement between the Authority and the municipality eliminating the need for the municipality to borrow even on a temporary basis to finance the Authority's share of the project costs in most cases. The range of reimbursement rates for new project grant applications to the Authority on or after July 1, 2007 has been reduced to between 40% and 80% of the approved project costs. The Authority promulgated new regulations with respect to the application and approval process for projects submitted after July 1, 2007. The Authority expects to pay grants for such projects as project costs are incurred pursuant to project funding agreements between the Authority and the municipalities. None of the interest expense incurred on debt issued by municipalities to finance their portion of the costs of new projects will be included in the approved project costs eligible for reimbursement. MOTOR VEHICLE EXCISE An excise is imposed on the registration of motor vehicles (subject to exemptions) at the rate of$25 per $1,000 of valuation. The excise is collected by and for the benefit of the municipality in which the motor vehicle is customarily kept. Valuations are determined by a statutory formula based on manufacturer's list price and year of manufacture. Bills not paid when due bear interest at 12 percent per annum. Provision is also made, after notice to the owner, for suspension of the owner's operating license or registration by the registrar of motor vehicles. The following table shows the actual receipts from the motor vehicle excise in each of the most recent years: For Fiscal Year (1) 2011 2010 2009 2008 2007 Motor Vehicle Excise Taxes $3,957,753 $3,016,673 $3,267,835 $4,068,019 $3,490,987 (1)Net after refunds. 31 ENTERPRISE FUNDS The Town operates enterprise funds for its water and sewer utilities, and for the operations of the Stevens Estate at Osgood Hill, a Town-owned event and conference center. The Town's Department of Public Works operates the water and sewer utilities. Effective August 1, 2009, the water rate is $3.80 per 100 cubic feet of metered water consumption for the first 2,000 cubic feet of consumption (for each three-month billing cycle) and $5.55 per 100 cubic feet for consumption beyond 2,000 cubic feet; the sewer rate is $5.83 per 100 cubic feet of metered water consumption for the first 2,000 cubic feet of consumption (for each three-month billing cycle) and $8.22 per 100 cubic feet for consumption beyond 2,000 cubic feet. In fiscal 2011, water revenues totaling $5,759,348 exceeded total water expenses of $3,188,559. Sewer revenues totaling $4,930,246 exceeded total sewer expenses of$3,877,585. The following table shows water revenues in the most recent fiscal years: Fiscal Year Receipts 2011 $5,759,348 2010 5,330,700 2009 4,549,458 2008 5,698,435 2007 5,174,840 The following table shows sewer revenues in the most recent fiscal years: Fiscal Year Receipts 2011 $4,930,246 2010 4,847,167 2009 4,488,077 2008 4,098,292 2007 3,652,936 The Town owns and operates the Stevens Estate at Osgood Hill. This facility consists of a mansion house, outbuildings, and 153 acres of wooded property. The facility is available to the public for conferences, weddings, and other social events. In fiscal 2011, revenues totaled $239,200 and expenses totaled $325,092. The following table shows revenues in the most recent fiscal years: Fiscal Year Receipts 2011 $239,200 2010 285,188 2009 193,103 2008 259,238 2007 471,173 32 i I COMMUNITY PRESERVATION ACT The Massachusetts Community Preservation Act (the "CPA"), enacted in September, 2000, permits cities and towns that accept its provisions to levy a surcharge on its real property tax levy and to receive state matching funds for the acquisition, creation, preservation, rehabilitation and restoration of open space, historic resources and affordable housing. The provisions of the CPA must be accepted by the voters of the city or town at an election after such provisions have first been accepted by either a vote of the legislative body of the city or town or an initiative petition signed by 5% of its registered voters. A city or town may approve a surcharge of up to 3% of the real property tax levy, and it may accept one or more exemptions to the surcharge under the CPA, including an exemption for low-income individuals and families and for low and moderate-income senior citizens, an exemption for $100,000 of the value of each taxable parcel of residential real property, and an exemption for commercial and industrial properties in cities and towns with classified tax rates. The surcharge is not counted in the total taxes assessed for the purpose of determining the permitted levy amount under Proposition 2% (see "Tax Limitations" under "PROPERTY TAX" herein). A city or town may revoke its acceptance of the provisions of the CPA at any time after 5 years from the date of such acceptance and may change the amount of the surcharge or the exemptions to the surcharge at any time, provided that any such revocation or change must be approved pursuant to the same process as acceptance of the CPA. Any city or town that accepts the provisions of the CPA will receive annual state matching grants to supplement amounts raised by its surcharge on the real property tax levy. The state matching funds are raised from certain recording and filing fees of the registers of deeds. Those amounts are deposited into a state trust fund and are distributed to cities and towns that have accepted the provisions of the CPA, which distributions are not subject to annual appropriation by the state legislature. The amount distributed to each city and town is based on a statutory formula which requires that 80% of the amount in the state trust fund be used to match an equal percentage of the amount raised locally by each city and town, and that the remaining 20% of the amount in the fund be distributed only to those cities and towns that levy the maximum 3% surcharge based on a formula which takes into account equalized property valuation and population, resulting in larger distributions to those communities with low valuations and small populations. The total state distribution made to any city or town may not,however, exceed 100% of the amount raised locally by the surcharge on the real property tax levy. The amounts raised by the surcharge on real property taxes and received in state matching funds are required to be deposited in a dedicated community preservation fund. Each city or town that accepts the provisions of the CPA is required to establish a community preservation committee to study the community preservation needs of the community and to make recommendations to the legislative body of the city or town regarding the community preservation projects that should be funded from the community preservation fund. Upon the recommendations of the committee, the legislative body of the city or town may appropriate amounts from the fund for permitted community preservation purposes or may reserve amounts for spending in future fiscal years, provided that at least 70% of the total annual revenues to the fund must be spent or set aside for open space purposes, 10% for historic resource purposes and 10% for affordable housing purposes. 33 The CPA authorizes cities and towns that accept its provisions to issue bonds and notes in anticipation of the receipt of surcharge revenues to finance community preservation projects approved under the provisions of the CPA. Bonds and notes issued under the CPA are general obligations of the city or town and are payable from amounts on deposit in the community preservation fund. In the event that a city or town revokes its acceptance of the provisions of the CPA, the surcharge shall remain in effect until all contractual obligations incurred by the city or town prior to such revocation, including the payment of bonds or notes issued under the CPA, have been fully discharged. The Town of North Andover adopted the CPA in March 2001, and has authorized a total of $6,810,000 of bonds under the Act for community preservation purposes. As of June 30, 2011, the CPA fund had a balance of $4,952,216. OTHER TAXES Three additional sources of revenue for local governments are the room occupancy excise tax, local meals excise tax, and the aviation fuel tax. All taxes take effect only where accepted by individual municipalities. Under the room occupancy excise tax, local governments may tax the provision of hotel, motel, or lodging house rooms at a rate not to exceed four percent of the cost of renting such rooms. The tax is paid by the operator of the hotel, motel, or lodging house to the State Commissioner of Revenue, who in turn pays the tax back to the municipality in which the rooms are located. The Town has voted to impose the room occupancy excise tax. The local meals excise tax, effective for sales of restaurant meals on or after October 1, 2009, is a three-fourths percent tax on the gross receipts of a vendor from the sale of restaurant meals. The tax is paid by the vendor to the State Commissioner of Revenue, who in turn pays the tax to the municipality in which the meal was sold. Currently, the Town has not voted to increase the meals or room taxes. TAX INCREMENT FINANCING FOR DEVELOPMENT DISTRICTS Under recent legislation, cities and towns are authorized to establish development districts to encourage increased residential, industrial and commercial activity. All or a portion of the taxes on growth in assessed value in such districts may be pledged and used solely to finance economic development projects pursuant to the city or town's development program for the district. This includes pledging such "tax increments" for the payment of bonds issued to finance such projects. As a result of any such pledge, tax increments raised from new growth properties in development districts are not available for other municipal purposes. Tax increments are taken into account in determining the total taxes assessed for the purpose of calculating the maximum permitted tan levy under Proposition 2%2. The Town has not voted to create any development districts. 34 I UNDESIGNATED GENERAL FUND BALANCE AND FREE CASH Under Massachusetts law an amount known as "free cash" is certified as of the beginning of each fiscal year by the State Bureau of Accounts and this, together with certain subsequent tax receipts, is used as the basis for subsequent appropriations from available funds, which are not required to be included in the annual tax levy. Subject to certain adjustments, free cash is surplus revenue less uncollected and overdue property taxes from prior years. The Town Accountant may certify as available for appropriation an adjusted free cash figure by adding back those uncollected and overdue property taxes which are subsequently collected between July 1 and the following March 31 of any year. The following shows the undesignated general fund balance and free cash for the most recent fiscal years: Undesignated General July 1, Fund Balance Free Cash 2011 $1,533,604 $662,280 2010 $1,549,371 690,952 2009 1,083,404 (71,033) 2008 401,236 (380,948) 2007 1,308,742 983,278 STABILIZATION FUND The Town has maintained a Stabilization Fund for several years. Under Massachusetts statutes, funds may be appropriated from the Fund for any municipal purpose by a two thirds vote of the town meeting. The following is the balance in the account at the end of the most recent fiscal years: June 30 Balance 2011 $2,646,278 2010 2,222,033 2009 1,264,956 2008 1,232,349 2007 1,193,194 INVESTMENTS Investments of funds of cities and towns, except for trust funds, are generally restricted by Massachusetts General Laws Chapter 44, section 55. That statute permits investments of available revenue funds and bond and note proceeds in term deposits and certificates of deposits of banks and trust companies, in obligations issued or unconditionally guaranteed by the federal government of an agency thereof with a maturity of not more than one year, in repurchase agreements, with a maturity of not more than 90 days secured by federal or federal agency securities, or in participation units in the Massachusetts Municipal Depository Trust ("MMDT"), or in shares of SEC-registered money market funds with the highest possible rating from at least one nationally recognized rating organization. MMDT is an investment pool created by the Commonwealth under the supervision of the State Treasurer's office. According to the State Treasurer the Trust's investment policy is designed to maintain an average weighted maturity of 90 days or less and is limited to high-quality, readily marketable fixed income instruments, including U.S. Government obligations and highly-rated corporate securities with maturities of one year or less. 35 Trust funds, unless otherwise provided by the donor, may be invested in accordance with section 54 of Chapter 44 of the General Laws, which permits a broader range of investments than section 55, including any bonds or notes that are legal investments for savings banks in the Commonwealth. The restrictions imposed by sections 54 and 55 do not apply to city and town retirement systems. COLLECTIVE BARGAINING Under Massachusetts Law, strikes by municipal employees are prohibited. Employees of Massachusetts municipalities have certain organizational and representational rights which include the right to organize, to bargain collectively by representatives of their choice on questions of wages, hours and other terms and conditions of employment, and to engage in lawful concerted activities for bargaining or other mutual aid or protection. The Town has approximately 745 full time employees of which approximately 93 percent belong to unions or other collective bargaining groups as follows: Number of Contract Employee Cateizory Represented by Employees Expires General Government Public Works AFSCME, Council 93 32 6/30/13 Town Clerical and Custodian AFSCME, Council 93 30 6/30/13 Police Officers IBPO Local 496 37 6/30/12 Firefighters IAFF, Local 2035 53 6/30/12 Communications Officers AFSCME, Council 93 9 6/30/13 Police Lieutenants IBPO, Local 454 2 6/30/12 Professional Librarians AFSCME, Council 93 6 6/30/13 School Department Teachers Massachusetts Teachers Association 351 8/31/15 Cafeteria Workers North Andover Cafeteria Workers Assoc. 45 6/30/12 Secretaries North Andover Educational Secretaries Assoc. 18 6/30/10 (l) Custodians North Andover Custodial Association 24 6/30/10 (l) Professional Support North Andover Professional Support Assoc. 112 8/31/10 (l) Nurses North Andover School Nurses 9 8/31/12 Total 728 (1) In negotiation. PHYSICAL AND ECONOMIC CHARACTERISTICS General The Town of North Andover (the "Town") is located in the Merrimack Valley of northeastern Massachusetts, approximately 24 miles north of Boston. Located in Essex County, the Town is bordered on the north by the Town of Methuen and the City of Haverhill, on the east by the Town of Boxford, on the west by the Town of Andover and the City of Lawrence, and on the south by the Towns of Middleton and North Reading. 36 Principal Employers (1) Other than the Town itself, the following are the principal employers located in the Town: Approximate Company Nature of Business Current Employees Merrimack College Higher Education 465 Demoulas Supermarkets, Inc. Grocery Store 456 Sweetheart Plastics Plastics Manufacturer 400 Lawrence Eagle Tribune Newspaper 367 Genesis Healthcare Healthcare 356 Edgewood Retirement Community Healthcare 259 A.E.G. Schneider Electronic Controls 256 National Grid Utility Service 244 Brooks School Education 180 Watts Regulators Manufacturing 175 (1) Source: The Town Employment and Payrolls Calendar Year Average 2010 2009 2008 2007 2006 Construction &Natural Resources 472 436 543 513 517 Manufacturing 2,009 1,920 2,413 2,698 2,954 Trade, Transportation &Utilities 2,096 1,997 1,735 1,975 1,971 Financial Activities 478 521 528 517 581 Professional &Business Services 2,489 2,356 2,386 2,440 2,228 Education&Health Services 3,563 3,463 3,284 3,160 3,132 Leisure &Hospitality 1,217 1,178 1,202 1,207 1,140 Information& Other Services 971 971 963 991 967 Total Employment (1) 13,531 13,079 13,591 13,718 13,711 Number of Establishments 984 923 931 934 928 Total Annual Wage (000) $694,613 $658,455 $691,709 $679,700 $670,411 Average Weekly Wage $987 $968 $979 $953 $940 (1) Total employment may differ from the sum of the given column; it includes information from firms for which employment figures are confidential. Building Permits Calendar Estimated Year Number Value 2011 1,100 $43,270,010 2010 1,194 51,445,196 2009 932 50,615,751 2008 708 47,154,238 2007 814 57,681,115 37 Economic Development Holt Road/Clark Street: This industrial park is located west of Route 125 in the northern part of Town and encompasses a total of 395 acres, with direct access to Route 125. AEP Industrial is the major company located in this park. The Town provides water and sewer services. Crusader Paper, located on Holt Road, expanded in 2008 by adding a 30,000 square foot addition to their facility and TBI, Inc. opened a state-of-the-art recycling facility encompassing 30,000 square feet in 2009. North Andover Business Park: This industrial park, which is connected to the Willows Industrial Park, is located on the west side of Route 114 and encompasses 60 acres of land with direct access to Route 114. Companies located in the park include Bake-n-Joy, which just completed a 30,000 square foot conversion of warehouse space to manufacturing, United Plastics and Material Installation. The Town provides water and sewer services. Willows Industrial Park: This park is also located on the west side of Route 114 and encompasses 50 acres of land. Companies located in this park include Watts Regulators, Dow Chemical, Micromatic Products, and Kenics Division Chemineer. The park is connected to the North Andover Business Parks. The Town provides water and sewer services. Osgood Landing at 1600 Osgood Street: The Town entered into a 20 year TIF agreement with Ozzy Properties, current owners of this industrial parcel, located on Route 125 in an Industrial 2 zone. The property also has a 40R designation, which includes a residential, mixed-use, and business zoning overlay. The owners are developing the structure into a multi-tenant commercial and industrial complex. Ozzy Properties has converted several thousand square feet of office and manufacturing space. The property is averaging a lease rate of 75,000 square feet annually. Ophir Optics, Inc. filled 30,000 square feet in 2007 and added 15,000 square feet in 2010. Jessica's Brick Oven, a baking wholesaler,plans to open 65,000 square feet in 2011. Town Meeting adopted the provisions of Massachusetts General Laws, Chapter 43D, which allows expedited permitting. The adoption of 43D allows the Town to identify the portion of commercial property at Osgood Landing as a "Priority Development Site" (PDS). The approval allows the Town to seek funding to support commercial development at Osgood Landing. The goal of the PDS is to recognize property that is specifically identified for commercial development and has a distinct set of permitting regulations that allow potential developers to "fast-track" applications through regulatory boards and commissions. In 2009, the Town was awarded "Platinum" status from the Massachusetts Biotechnology Council for the ability to be shovel-ready when allowing new business to locate in North Andover. The Mentor Network, which employs over 50 people, opened in 2010. Downtown Davis & Furber Mill: This industrial zone, which is adjacent to the downtown and contains mill buildings covers approximately 16.5 acres and contains the headquarters of Converse Inc. footwear and consumer audio manufacturer and retailer Cambridge Soundworks. The mill complex also has offices for Schneider Electric, a French global company that is a world leader in electricity management, and Aurora Imaging. Aurora Imaging Technology, Inc. is a leader in the fight against breast disease as the manufacturer of the Aurora 1.5T Dedicated Breast MRI System. The Aurora Breast MRI System is the only FDA cleared, truly dedicated and truly integrated MRI system designed specifically for breast imaging. With an exclusive precision gradient coil design, the Aurora System provides an elliptical "sweet spot" that images both breasts, chest wall, and axillae in a single bilateral scan without compromise in image contrast or resolution. The Town provides water and sewer services to the mill complex. 38 I Other Areas: The sixth industrial zone, which is located on the southern end of Route 114 on both the northeast and southwest sides of the highway, is comprised of 85 acres of land with direct access to Route 114. The Town operates the Cyr Recycling Facility on a portion of this property and Eastern Technologies is located here. The Town of North Andover provides the water services. The seventh industrial zone is located east of Osgood Street and is comprised of 95 acres of land. Microwave Engineering, which manufactures electronic components specializing in waveguides, adapters, antennas, coils, connectors &passive microwave devices; L-com, a leading manufacturer of connectivity products such as cable assemblies, fiber optics and network equipment; Palestra Gymnastics Academy and Alco Electronics. The Town provides sewer and water services. Airport Industrial Project: This project involves the proposed development of 40.37 acres of the Lawrence Municipal Airport, located off Sutton Street in North Andover, into 10 industrial properties. The project site lies at the end of Clark Road in North Andover on property owned by the Lawrence Municipal Airport. The shape and topography of the site warrants the development of a mix of building sizes from 49,400 sf to 146,000 sf as listed below: Lot# Maximum Size (Square Feet) Lot 1 146,000 Lot 2 54,000 Lot 3 77,000 Lot 4 49,400 The City of Lawrence is working cooperatively with the Town to pursue the construction of the industrial subdivision. The two communities are working together to prepare the description, documents, and plans necessary to complete the installation of utilities and any roadway construction necessary for the industrial park. The project is currently on hold. Adjacent to the airport property is OSI Electronics. OSI is well positioned to meet the challenges of today's Electronic Manufacturing Services Market. The North Andover facility presents their customers with a range of options, whether designing and building prototype or pre-production quantities or transferring mature products to a lower cost environment. Their expertise is in medical, aerospace/military, and telecommunications product manufacturing from components and board assemblies to complete systems, establishes a framework of high quality that encompasses all products we manufacture. 39 OTHER DATA Unemployment (1) Year North Andover Massachusetts United States 2012 (February) 5.7% 7.9% 8.7% 2011 5.9 6.8 8.9 2010 7.7 8.5 9.6 2009 7.9 9.0 9.3 2008 4.5 5.3 5.8 (1) Massachusetts Department of Employment and Training. Full year annual averages except for 2012 which is for the month indicated. Population (1) North Andover Essex County Massachusetts Year Number % Change Number % Change Number % Change 2020 (Prof.) 32,153 6.9% 787,032 4.3% 6,767,712 3.2% 2010 (Prelim.) 28,352 4.2 743,159 2.7 6,547,629 3.1 2000 27,202 19.3 723,419 8.0 6,349,097 5.5 1990 22,792 13.2 670,080 5.8 6,016,425 4.9 1980 20,129 23.6 633,632 (0.7) 5,737,037 0.8 1970 16,284 637,887 5,689,170 (1)Source: U.S.Department of Commerce for actuals,Massachusetts Institute for Social&Economic Research for projections. Population Density (1) North Andover Essex County Massachusetts Year Number Deng (2) Number Density Number Density 2020 (Proj.) 32,153 1,205.9 787,032 1,580.2 6,767,712 863.5 2010 (Prelim.) 28,352 1,063.1 743,159 1,492.1 6,547,629 835.4 2000 27,202 1,019.9 723,419 1,452.4 6,349,097 810.0 1990 22,792 854.6 670,080 1,345.4 6,016,425 767.6 1980 20,129 754.7 633,632 1,272.2 5,737,037 732.0 1970 16,284 610.6 637,887 1,280.7 5,689,170 725.8 (1)Source: U.S.Department of Commerce. (2)Based on 26.7 square miles. 40 Population Composition 2000 (1) North Andover Essex County Massachusetts Age Number Percent Number Percent Number Percent Under 5 Years 1,915 7.0% 48,254 6.7% 397,268 6.3% 5 Years to 19 Years 6,078 22.3 151,038 20.9 1,277,845 20.1 20 Years to 64 Years 15,565 57.2 423,821 58.6 3,813,822 60.1 65 Years & Over 3,644 13.4 100,306 13.9 860,162 13.5 Total 27,202 100.0% 723,419 100.0% 6,349,097 100.0% Median Age 37.2 37.5 36.5 Median Age(1990) 34.2 34.5 33.6 (1)Source: U.S.Department of Commerce. Income Levels (1) North Andover Essex County Massachusetts % Change from % Change from % Change from Year Amount Previous Census Amount Previous Census Amount Previous Census Per Capita-Personal 1999 $34,335 49.6% $26,358 49.9% $25,952 50.7% 1989 22,957 168.4 17,586 129.2 17,224 131.0 1979 8,554 7,673 7,457 Median Family Income (1999) $91,105 $63,746 $61,664 Median Household Income (1999) $72,728 $51,576 $50,502 %Below Poverty Level (1999) 2.9% 8.9% 9.3% (1)Source: U.S.Department of Commerce. Family Income Distribution 1999 (1) North Andover Essex County Massachusetts Income for Families Families Percent Families Percent Families Percent Less than $10,000 77 1.1% 8,075 4.3% 71,198 4.5% $10,000 - $24,999 423 6.0 20,022 10.8 175,120 11.0 $25,000 - $49,999 1,118 15.9 41,277 22.2 368,418 23.2 $50,000 - $74,999 1,187 16.9 40,776 21.9 359,202 22.6 $75,000 - $99,999 1,107 15.8 30,224 16.2 251,231 15.8 $100,000 - $149,999 1,692 24.1 27,479 14.8 222,234 14.0 $150,000 or more 1,408 20.1 18,190 9.8 140,134 8.8 Total 7,012 100.0% 186,043 100.0% 1,587,537 100.0% (1)Source: U.S.Department of Commerce. I 41 Household Income Distribution 1999 (1) North Andover Essex County Massachusetts Income for Households Households Percent Households Percent Households Percent Less than $10,000 448 4.6% 24,033 8.7% 214,700 8.8% $10,000 - $24,999 1,122 11.6 42,354 15.4 385,395 15.8 $25,000 - $49,999 1,812 18.7 66,519 24.2 608,320 24.9 $50,000 - $74,999 1,562 16.1 54,048 19.6 490,998 20.1 $75,000 - $99,999 1,334 13.8 36,066 13.1 312,741 12.8 $100,000 - $149,999 1,929 19.9 32,016 11.6 267,300 10.9 $150,000 or more 1,492 15.4 20,374 7.4 165,134 6.8 Total 9,699 100.0% 275.410 100.0% 2,444,588 100.0% (1)Source: U.S. Department of Commerce. Value Distribution Of Specified Owner-Occupied Housing Units 2000 (1) North Andover Essex County Massachusetts Units Number Percent Number Percent Number Percent Less than $100,000 39 0.7% 6,159 4.4% 113,263 9.5% $1009000 - $149,999 282 5.0 22,028 15.7 277,571 23.4 $15000 - $199,999 681 12.0 32,305 23.1 273,542 23.0 $200,000 - $299,999 1,599 28.2 42,625 30.5 286,599 24.1 $300,000 - $499,999 2,394 42.3 28,043 20.0 170,536 14.4 $500,000 or more 669 11.8 8,771 6.3 66,360 5.6 Total 5,664 100.0% 139 931 100.0% 1,187,871 100.0% Median Value $316,500 $220,000 $185,700 (1)Source: U.S. Department of Commerce Age Distribution Housing Units 2000 (1) North Andover Essex County Massachusetts Year Built Number Percent Number Percent Number Percent 1990 to March 2000 1,401 14.1% 21,706 7.6% 218,407 8.3% 1980 to 1989 1,599 16.1 31,301 10.9 292,701 11.2 1940 to 1979 5,116 51.5 124,424 43.3 1,205,183 46.0 1939 or Earlier 1,827 18.4 109,713 38.2 905,698 34.5 Total 9,943 100.0% 287,144 100.0% 2,621,989 100.0% (1)Source: U.S.Department of Commerce. 42 Housing Unit Inventory 2000 (1) North Andover Essex County Massachusetts Units in Structure Number Percent Number Percent Number Percent 1, Detached 5,609 56.4% 149,666 52.1% 1,374,479 52.4% 1, Attached 651 6.5 13,755 4.8 104,129 4.0 2 to 4 1,448 14.6 70,039 24.4 603,917 23.0 5 to 9 652 6.6 15,840 5.5 156,135 6.0 10 to 19 998 10.0 11,735 4.1 113,697 4.3 20 or More 572 5.8 24,127 8.4 244,892 9.3 Mobil Home, Trailer, or Other 13 0.1 1,982 0.7 24,740 0.9 Total 9,943 100.0% 287,144 100.0% 2,621,989 100.0% (1)Source: U.S.Department of Commerce. Educational Attainment 2000 (1) North Andover Essex County Massachusetts Years of School Completed Number Percent Number Percent Number Percent Less than 9th Grade 400 2.3% 28,862 5.9% 247,556 5.8% 9th to 12th Grade, No Diploma 827 4.7 46,105 9.5 403,537 9.4 High School Graduate 3,501 19.8 136,744 28.1 1,165,489 27.3 Some College,No Degree 2,903 16.4 86,102 17.7 730,135 17.1 Associate's Degree 1,149 6.5 37,065 7.6 308,263 7.2 Bachelor's Degree 5,207 29.5 95,184 19.5 834,554 19.5 Graduate or Professional Degree 3,685 20.9 57,041 11.7 583,741 13.7 Total 17,672 100.0% 487,103 100.0% 4,273,275 100.0% High School Graduate or Higher 16,445 93.1% 412,136 84.6% 3,622,182 84.8% Bachelor's Degree or Higher 8,892 50.3% 152,225 31.3% 1,418,295 33.2% (1)Source: U.S.Department of Commerce. LITIGATION At present there are a number of suits pending in which the Town is a defendant. In the opinion of the Town, there is no litigation, either pending or threatened, which is considered likely to result, either individually or in the aggregate, in final judgments which would materially affect the Town's financial position. TOWN OF NORTH ANDOVER Massachusetts By: /s/Jennifer Yarid Town Treasurer Dated: May 3, 2012 43 APPENDIX A The following Balance Sheets for fiscal years ending June 30, 2007, 2008, 2009, 2010 and 2011 and the Comparative Statements of Revenues, Expenditures and Changes in Fund Balances for fiscal years ending June 30, 2007 through 2011, have been taken from the audited financial statements of the Town for those years. The Town engaged the firm of Powers & Sullivan, LLC, Certified Public Accountants, to audit the accounts for the Town for the year ending June 30, 2011. That audit is reproduced in Appendix B. A-1 TOWN OF NORTH ANDOVER MASSACHUSETTS BALANCESHEET GENERAL FUND (1) June 30, June 30 Assets 2011 2010 2009 2008 2007 Cash&Investments $ 8,975,362 $ 6,472,529 $ 5,796,160 $ 7,580,332 $ 7,976,017 Receivables: Property Taxes 881,754 626,231 1,812,854 1,688,509 1,165,210 Excise Taxes 263,036 305,192 306,586 348,460 268,174 Due from Other Governments 0 0 2,198,586 2,336,849 12,296,650 Tax Liens 1,911,180 1,573,938 963,122 1,059,427 1,217,457 Tax Foreclosures 392,513 392,513 377,080 330,961 237,311 Departmental&Other 313,045 194,463 187,339 330,371 245,956 Intergovernmental 1,688,667 1,902,989 0 0 0 Prepaid Expenditures 0 0 0 0 0 Other Assets 0 0 301,187 116,344 237,311 Total Assets $14.425,557 $11,467,855 $11.942,914 $13,791,253 $23,460,12 4 Liabilities and Fund Equity Liabilities Warrants Payable $ 1,005,705 $ 1,197,834 $ 934,202 $ 698,028 $ 678,148 Accrued Liabilities 2,619,946 2,543,633 2,570,790 2,455,539 2,186,778 Deferred Revenue 5,155,325 4,777,443 5,667,805 5,763,038 15,118,950 Reserve for Tax Refunds 782,000 747,000 1,001,000 1,039,614 730,488 Liabilities Due Depositors 106,160 106,150 106,160 106,160 106,160 Accrued Interest 0 0 0 1,742 48,998 Other Liabilities 82,349 67,586 71,299 115,034 120,501 Total Liabilities 9,751,485 9,439,656 10 351,256 10,179,155 18,990,023 Fund Equity Restricted $1,033,892 0 0 0 0 Assigned 184,314 0 0 0 0 Unassigned 3,455,866 0 0 0 0 Reserved for Encumbrances 0 266,692 250,920 686,913 582,147 Reserved for Debt Service 0 1,102,818 1,171,745 1,240,671 1,088,368 Unreserved: Designated 0 0 0 1,283,278 1,490,844 Designated 658,689 168,993 401,236 1308,742 Total Fund Equity 4,674,0 2,028,199 1,591,658 3,612,098 4 470,101 Total Liabilities and Fund Equity $14,425.557 $11,467,855 $11,942,914 $13,791,253 $23,460,124 (1) Fiscal 2007 and 2008 taken from the audited financial statements of the Town prepared by Sullivan, Rogers& Company, LLC. Fiscal 2009 through 2011 taken from the audited financial statements of the Town prepared by Powers &Sullivan, LLC, Certified Public Accountants. A-2 TOWN OF NORTH ANDOVER,MASSACHUSETTS COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL FUND cl� June 30, Revenues 2011 2010 2009 2008 2007 Property taxes $57,423,755 $56,703,210 $54,496,257 $51,648,818 $48,777,621 Excise taxes 3,790,515 3,515,205 3,727,728 4,068,018 3,477,581 Penalties and interest 336,298 355,251 331,059 292,512 305,539 Licenses,permits and fees 220,650 227,766 215,563 1,536,606 1,245,595 Intergovernmental 15,660,252 14,824,029 14,984,540 16,404,813 15,208,051 Charges for service 836,864 793,374 911,929 828,544 797,455 Interest earnings 364,914 396,306 472,013 848,997 1,082,484 Tax and utility liens 238,977 282,122 135,451 357,435 282,196 Payments in lieu of taxes 1,731,968 1,707,282 1,687,058 1,576,552 1,586,050 Fines and forfeitures 113,167 120,877 155,272 169,526 124,303 Departmental and other 1,271,902 1,103,852 1,240,084 634,707 415,233 Total Revenues $81,989,262 $80,029,274 $78,356,954 $78,366,528 $73,302,108 Expenditures General government $ 2,866,154 $ 2,566,775 $ 2,550,085 $ 2,368,330 $ 2,427,837 Public safety 8,620,394 8,885,597 8,587,440 8,493,189 8,308,701 Education 37,357,213 36,709,223 35,729,622 35,602,795 32,052,996 Public works 4,156,778 4,071,651 4,686,678 4,292,691 3,599,351 Employee benefits 9,415,481 8,959,530 9,389,284 8,890,836 7,957,488 Debt service: Principal 5,574,681 5,348,471 6,362,702 6,094,566 6,588,374 Interest 1,337,978 1,299,581 1,275,869 2,116,652 2,687,682 Health and human services 938,863 921,834 881,624 808,840 729,238 Culture and recreation 813,611 807,017 799,424 772,118 675,313 Pension benefits 9,537,508 8,959,530 8,632,667 7,978,462 7,212,850 Property and liability insurance 276,258 294,085 321,675 322,592 415,406 State and County charges 2,115,484 2,307,758 2,267,181 2,200,498 2,170,566 Total Expenditures $83,010,403 $79,807,963 $81,484,251 $79,941,569 $74,825,802 Excess of revenues over/(under) expenditures $ (1,021,141) $ 221,311 $ (3,127,297) $ (1,575,041) $ (1,523,694) Other Financing Sources(Uses) Operating transfers in 1,322,517 1,241,193 1,100,814 1,178,418 889,668 Sale of capital assets 0 0 0 0 1,770 Premium from issuance of bonds And notes 127,464 10,417 202,338 12,615 0 Operating transfers (out) (5,000) (1,036,380) (196,295) (473,995) (503,666) Total Other Financing Sources/(Uses) $ 1,444,981 $ 215,230 $ 1,106,857 $ 717,038 $ 387,772 Excess of revenues and other financing sources over/(under)expenditures and other financing uses $ 423,840 $ 436,541 $ (2,020,440) $ (858,003) $ (1,135,922) Fund Equity,beginning of year $ 4,250,232 $ 1,591,658 $ 3,612,098 $ 4,470,101 $ 5,606,023 Fund Equity, end of year 4.674.072 2.028.199 1.591.658 3.612,098 4.470.1 01 (1) Fiscal 2007 and 2008 taken from the audited financial statements of the Town prepared by Sullivan,Rogers&Company,LLC.Fiscal 2009 through 2011 taken from the audited financial statements of the Town prepared by Powers&Sullivan,LLC, Certified Public Accountants. (2) Beginning fund balance for fiscal 2011 has been restated in compliance with Statement#54 of the Governmental Accounting Standard Board(GASB). A-3 APPENDIX B There follows in this Appendix audited financial statements of the Town of North Andover, Massachusetts, as of June 30, 2011 together with the auditor's report of Powers&Sullivan, CPAs. I I �I B-1 APPENDIX E This form is provided for the convenience of bidders but its use is not required PROPOSAL FOR $4,508,348 TOWN OF NORTH ANDOVER,MASSACHUSETTS GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2012 BONDS May 15,2012 Ms.Jennifer Yarid,Treasurer Town of North Andover,Massachusetts c/o UniBank Fiscal Advisory Services,Inc. 49 Church Street Whitinsville,Massachusetts 01588 Dear Ms.Yarid: For all of the$4,508,348 Town of North Andover,Massachusetts, General Obligation Municipal Purpose Loan of 2012 Bonds,Book- Entry Only, as further described in the Notice of Sale dated May 3,2012,we bid a price of par plus$ , plus accrued interest to the date of their delivery,provided that the Bonds maturing in the several years set forth below shall bear interest from their dated date until maturity at the respective rates per annum stated in the following table: Year Rate* Year Rate* Year Rate* 2013 2020 2027 2014 2021 2028 2015 2022 2029 2016 2023 2030 2017 2024 2031 2018 2025 2032 2019 2026 *Complete for maturing serial bonds TERM BONDS $ Term Bond maturing on May 15, at %per annum $ Term Bond maturing on May 15, at %per annum $ Term Bond maturing on May 15, at %per annum The undersigned hereby acknowledges the receipt of and the opportunity to examine the Preliminary Official Statement accompanying the said Notice of Sale. II By The following is our computation of the true interest cost and percent true interest cost, made as provided in the above mentioned Notice of Sale,but not constituting any part of the foregoing proposal,of the purchase of$4,508,348 General Obligation Municipal Purpose Loan of 2012 Bonds under the foregoing proposal: True Interest Cost. $ Percent True Interest Cost % (four decimals) UniBank Fiscal Advisory Services,Inc. will assist in submitting bids on this issue if desired. Please sign a blank bid form and mail it in advance of the sale to David M. Eisenthal at the above address or fax it to(508)234-1938. UniBank Fiscal Advisory Services, Inc. will act as agent for bidders if they will telephone final figures to (508) 849-4222 approximately one-half hour before the sale. Bidders are responsible for any errors in bids submitted in this manner. E-1 Licensing Commissioners TOWN OF NORTH ANDOVER OFFICE OF TOWN CLERK 120 MAIN STREET NORTH ANDOVER,MASSACHUSETTS 01845 ,%O R TH 0 Joyce A.Bradshaw, CMMC F a Telephone(978)688-9501 Town Clerk, * FAX(978)688-9557 '=7,9 .NATEG SSHCHUS� MEMORANDUM TO: Rosemary Connelly Smedile, Chairman, Licensing Commission Members of the Board of Selectmen Andrew Maylor, Town Manager „ FROM: Karen A. Fitzgibbons, Asst. Town Clerk DATE: May 15, 2012 SUBJECT: One Day All Alcohol License Attached please find an application for a One Day All Alcohol License and supporting letter from Armen Jeknavorian. St. Gregory Armenian Apostolic Church wishes to hold their 2nd Annual Cigar Night&Dinner in memory of Fr. Vartan Kassabian. The event will be held on Thursday, June 14, 2012 at 158 Main Street during the hours of 6:00 pm to 11:30 pm. The applicant is respectfully asking the Licensing Commission to waive the fee, as has been done in the past. Included in this attachment are favorable recommendations from the North Andover Police and Fire Departments. If you have any questions or concerns,please feel free to contact me or Joyce A. Bradshaw. Thank you. � Y ♦I nilps %m%np u8UUSUbt?U88 UaUAbLU14U , 1aulbrkb8r ' St. Gregory Armenian Apostolic Church tt� of Merrimack Valley 158 Main Street `S North Andover, Massachusetts 01845 Reverend Father Karekin Bedourian Pastor Tv'fa 3 2,012 At n: L.G Yuor orr r.7 s3 1`2,'1, "Aaln Street Novh Andover, MA 01 T rl p1E7P7os'e (if this jett ` is to r: on t"'! l f1dl lial:mr. Ilicefise for i lit 7i;cl F.a.s ci N t`ET 31 r�l�e- 1, i. r"sS,Y 1 %Rrl, 3C .i.t e f t(,-� cs ..�; ca. z, y �i: d.,r' 'Bic, 9 Y LiY ,: I� 9_�� . �J �,. _�; �, u° kAe tee assn ii.- 0 v.: w`'l.i.', J+b_e is i the _ �r r = -r 1 St I - I " ^" r,tIT I �I Telephone and Fax(978)685-5038 E-mail: stgregory@saintgregory.org Web Site: www.saintgregory.org May 0412 01:38p Post Office Locksmith 978-453-2241 p1 TOWN OF NORTH ANDOVER ONE DAY LIQUOR U CE)VSE APPLICATION (30 DAY NOTICE STRONGLY RECOMMENDED) organization holding event, Name&Address of Responsible Party: j St1 alL'D Ing ? Contact Number&e-mail location of Event: IN 5 m Type of Event: N1) RAI� 0 1 6-47— Is the event being Catered? Ycs No Name of Caterer Dee &Ttm a of Event: fJ No=Plrofit nl zation , iherThan Non Profit Wine&Malt All Alcohol Wine &Malt ALCOHOL MUST RE PURCHASED BY THE LICENSEE FROM A WHOLESALER Has permission boon received from the property owner to hold this even 7 Who is serving the alcohol? Toe Does the server have liquor liability Insurance? Have servers had training In alcohol service? -� I, the undersigned, understand and agree to the restriction and responsib Ilitios of holding a Onv Day Alcohol License and certify that I am not prohibited frorti holding such license. I agree that the'rown of North Andover is i no y responsible for the actions of the applicant. AppllCinCS Si$na re Date I I 2 'd L!;g9Re96/,$ UwQ-t WHEE :01 2102 bo RQw TOWN OF NORTH ANDOVER, MASSACHUSETTS Police Department , 1475 Osgood Street North Andover,MA. 01845 Tel:978-683-3168 - -=- To: Karen Fitzgibbons From: Lt.John Carney RE: One Day License Date: May 7, 2012 The Police Department recommends favorable action on the request from Armen Jeknavorian and St. Gregory Armenian Apostolic Church for a one day all alcohol license on June 14th on the Church Grounds as outlined in the application. i TOWN OF NORTH ANDOVER Fire Department Central Fire Headquarters—Fire Prevention 0ffice 124 MAIN STREET NORTH ANDOVER, M/\SQ/\CHU8BT7.s0l845 IAORTH Andrew Mc|uikam 978) Telephone(978) Fire Chief ` ' FAX (978)688-9594 Lt, F. McCarthy Fire Prevention Officer CH fmccarthv(_,,to,vnofilorthandover.com Town Clerk's Office ]20 Main St. North Andover, Mu May \0, 20l2 Karen, The Fire Department recommends favorable action in granting l day liquor license to 3t. Gregory's Church l58 Main St. ou June l4" 20|2 from 6'll:3Opm. For the purpose of the second annual Cigar Niubtund[)inoer. We just ask they be cognizant of setting off a smoke detector during the event as well am making sure all smoking materials are properly discarded. Regards, It Frederick K4uCxdhv ~ Fire Prevention. | � � � � � Old Business i RECOMMENDED AMENDMENT TO THE FY13 TOWN MANAGER'S RECOMMENDED BUDGET As you may recall I have communicated to the School Committee and others that even if the House or Senate proposed budgets increased state aid from that of the governor we should avoid amending the Town Manager's Recommended Budget unless the amount of the difference was$150k or greater. The school committee in fact read an email into their minutes regarding my position at a meeting in March. The House Ways and Means budget released several weeks ago provided NA with $113,458 more in state aid than the governor's budget. The SC was aware of that, but to their credit held the line regarding requesting additional funding because the increased state aid was below the$150k. Well in a truly odd, but positive year, the Senate Ways and Means budget released yesterday proposed state aid to NA of$220,928 above the governor's number. I now feel comfortable that the House number is a reasonable place to budget from and therefore recommend that the selectmen at their next meeting amend the budget you adopted by$113,458 and allocate those funds at the same percentage as we did in the original budget. This would mean an increase in school funding of$77,945 and municipal funding of$35,513. 1 recommend the municipal funding be placed in the Public Safety Salary Reserve to cover the cost of negotiated contracts and overtime. I I i ii i I I �I DRAFT-MAY 17, 2012 TOWN OF NORTH ANDOVER MASSACHUSETTS ANNUAL TOWN MEETING WARRANT ANNUAL FINANCE COMMITTEE REPORT TO VOTERS-MAY 21,2012 tAORTH ox * e.� 41 rao O <OCMILM WKM`7` ��SSACHUS�K�y TUESDAY JUNE 129 2012 7:00 P.M. NORTH ANDOVER HIGH SCHOOL 430 OSGOOD STREET Please Bring This Booklet With You! Additional Information and updates:www.townofnorthandover.com 1 I I II I f i ;r • _y a r y,SS�CNN`+t4 ANNUAL FINANCE COMMITTEE REPORT TO VOTERS "The North Andover,Finance'6I 6nn�itt6e,bi onst tuted as.required by;Massachusetts law=and the North Andover Home Rule Charter,consists Qf a"diverse,group of citizens appointed by the:Town �Moderator'to learn about'explain, and make re6drnrnendafons�bn aill?aspects of municipal finance.on behalf of-the Town's residents.", Introduction 2012 Annual Finance Committee Report The fiscal 2013 budgeting process has been one of great interest and challenge for the Finance Committee. Not only has the composition of the Committee changed but fiscal 2012 also saw a change in Town Manager and a movement of Town Meeting itself. Despite the Committee's review process being changed from prior years,the Committee has been able to fulfill its duties and in doing so create sensible and responsible guidance for the various decisions that need to be made. We are unable to report to you that the fiscal 2013 operating budget shows no increase from the 2012 operating budget. Contractual obligations and continuing concerns and increases in healthcare and pension costs continue to be major drivers in larger budget requests. These increases were not able to be offset by savings in other areas. However, no overrides are necessary to meet the proposed fiscal 2013 operating budget that is being proposed and presented to you for your collective approval. It is our hope that as the future years' debt payments are satisfied,the reductions in principal and interest payments can be used, at least in part, to stabilize our town's tax rate. As long as contractual obligations and the increased funding of health and pension costs do not change,annual tax increases will continue indefinitely and the town will be forced to cut and reduce the overall services offered. There are three items in the capital budget in particular that the Finance Committee feels further review is required before being able to recommend favorable action. 1. The first item relates to the Energy Performance Contracting and the request to borrow or otherwise finance $4,383,076 to award the implementation of an energy savings initiative Article 26 Energy Services Company Project Funding. While everyone on the committee is in favor of the idea of energy savings, there are many concerns and questions as to the 3 NORTH ANDOVER TOWN MEETING SIMPLIFIED RULES OF PARLIAMENTARY PROCEDURE The purpose of Town Meeting is to establish and update the By-laws, operational policies, budgets and land use rules that govern our Town. North Andover's Open Town Meeting has been in force as our form of government since 1646. It represents the purest form of democracy in that every vote truly counts.Each registered voter is guaranteed an equal voice in the decisions made by the Meeting.In order to protect the sanctity of that vote,the North Andover Town Charter empowers the Town Moderator to establish the rules of Procedure under which Town Meeting is to be conducted. These rules are historically based on the traditions established by generations of North Andover citizens and by other New England communities,acting as legislators of their local governments. Specific parliamentary rulings and conduct are governed) by the Moderator, using Massachusetts General Laws, the North Andover Charter, North Andover By-Laws, and local tradition as a guideline. The well-known"Roberts'Rules"are not applied and have no bearing on conduct of the meeting. Past Moderators have also utilized the book "Town Meeting Time, A Handbook of Parliamentary Law", published by the Massachusetts Moderators'Association,to provide guidance for unusual situations. Town Meetings across the Commonwealth of Massachusetts are similar,but not identical,in the manner in which they are conducted. Local traditions can significantly affect a town's proceedings and help define the role and latitude of the Moderator. At North Andover Town Meetings we will endeavor to present all necessary information in an efficient and timely manner so that the most clarity can be afforded to voters, enabling them to make informed decisions. Voters, in turn, have a unique responsibility. Not only must they express, by vote, the decisions made based upon their own judgment and perspective, but also be cognizant of the effect their vote and/or decision has on all citizens of North Andover. The rules of procedure for North Andover Town Meeting follow: 1. The first action required after the announcement of any Article on the Meeting's Warrant is that a Main Motion be proposed. The citizen sponsor of an article, Town Board sponsor,or Town Board with an affirmative recommendation,are likely movers of a main motion. The initial motion for the Town budget will be made by the Finance Committee. Any Town Board or voter may amend the motion for consideration and deliberation of the meeting. 2. All motions must be seconded by a voter other than the person offering the main motion,and only then may discussion and debate begin. 3. Any voter wishing to address the meeting must first gain the attention of the Moderator when no other speaker has the floor. Public microphones are available, where a speaker seeking to be recognized,being courteous to others and those next in line,will call out"Mr.Moderator..." 4. Once recognized by the Moderator, a speaker is given a turn to speak for up to five (5) minutes and must address the meeting on only the article currently under 5 it repetitious statements. In due course it will become apparent that sufficient information has been presented and voters are ready to make their decision and the Moderator shall so rule. Motions to move the question to a vote are in order and are not generally subject to debate.A motion to move the question requires a 2/3 vote for approval. At the Moderator's discretion, such motion may not be allowed and/or may be subject to debate, particularly if the motion to close debate would restrict informed consideration of the entire meeting and/or comes before an appropriate discussion has taken place on the main motion. 11.Votes are taken by two methods — voice ("Ayes" and "Nays"), or a counted vote ("show of hands") — and declared to be complete by the Moderator when he announces the result. If the determination of a voice vote is doubted, a request by at least seven(7)voters, either rising or standing in place,will mandate the Moderator to request a counted vote. 12.Most issues will be decided by a simple majority of those voting. Issues requiring a two-thirds (2/3), four-fifths (4/5), or other majority will be clearly identified to the meeting at the time the article is presented and again at the time of the vote. Articles that require greater than majority votes may be taken by voice and/or a limited counted vote for the efficient conduct of the meeting. The Moderator will declare a vote unanimous,if so understood. Glossary of Town Meeting Terms Town Meeting Town Meeting is the duly-called meeting in which all registered voters are eligible to participate.It is the Town's de facto legislature,where fiscal issues,zoning changes,by-law amendments, and other matters affecting the Town are decided. An Annual Town Meeting is held in the spring to decide issues for the following fiscal year, which begins in July. A Special Town Meeting may be called at any time to deal with issues that cannot wait for the next Annual Meeting.A Special Town Meeting is called by vote of the Selectmen or if two hundred(200)voters sign a petition requesting one. Warrant The Warrant is the official public notice of business to be considered at Town Meeting. It will be publicly posted throughout the Town, set a time and place for the meeting, and contain one or more articles. Once the warrant is opened by the Selectmen articles may be submitted until the stated deadline. Article An Article is the self-described characterization of an issue to be decided at the meeting and must be clearly defined by the petitioner or sponsor. The content of the article must be clearly and completely explained so that voters will fully understand the context and meaning of the article. The scope of each article sets the bounds of actions that may be taken. Amendments or motions outside the scope of issues and/or actions presented in the article at the time of posting of the Warrant may not be considered at the meeting. Articles are submitted by Town Boards or agencies,citizen petitions of ten(10)registered voters at Annual Town Meeting,or one hundred(100)registered voters at Special Town Meeting. 7 Town Clerk The Town Clerk is appointed by the Town Manager and is responsible for distributing notices of any Town Meeting,keeping all public records associated with the meetings, and producing the final recorded minutes of actions voted. The Town Clerk's minutes are the only tangible record of debate and voting,and are used in formal enactment of local By-law. Selectmen The Board of Selectmen is an elected body responsible for calling the meeting and setting the warrant. This executive board is often authorized by the meeting to act on the Town's behalf between Town Meetings and oversee its management through the appointed Town Manager. School Committee The School Committee is an elected body responsible for setting policy and directing management of the schools,through its appointed Superintendent of Schools. Finance Committee The Finance Committee is appointed by the Moderator and is responsible for specific recommendations to the Town Meeting on financial and certain other articles. This body of citizens has the obligation to investigate finance related articles proposed to the meeting and make independent recommendations in the best financial interest of the Town. Planning Board The Planning Board is appointed by the Town Manager and is responsible for administering the Town's Zoning By-law. This Board) is required to hold hearings and make recommendations on articles which affect zoning or environmental issues. Town Counsel Town Counsel is the Town's Attorney, appointed by the Selectmen. Town Counsel will make legal rulings and advise the meeting when that advice is needed. Executives,Staff and Committees Many other participants have strong interest in assuring the success of Town Meeting. They propose issues,explain interests and supply information to the voters. Included in this group are the Town Manager, Superintendent of Schools, Town Accountant, Department Heads, and various other Town Committees. I Operating Staff Significant effort is made to properly organize and operate Town Meeting. Town staff and volunteers provide the necessary support to conduct each Town Meeting and include Registrars of Voters,Voter Check-in Clerks, Counters,Public Safety Officers and Facilities Personnel of the building in which the meeting is held. Respectful Deliberation and Debate: I 9 �I I Addendum A Advisory on Electronic and Other Visual Presentations Any speaker at Town Meeting wishing to utilize an electronic or other visual presentation must abide by this advisory as well as adhere to all rules regulating conduct of any speaker. • The use of electronic/visual presentations are limited to provide necessary information that is not easily conveyed in verbal form, such as maps, graphs, charts and photos.The propriety of use is to improve the clarity of information given to the meeting. The Moderator will encourage consolidation of presentation material to benefit the attending voters,and to ensure balance during the debate. • Electronic/visual presentations by Town agencies, with similar recommendations on an article, are encouraged to consolidate electronic/visual presentations into a single presentation. That presentation, scheduled with the Moderator at least one week prior to a Town Meeting, may utilize up to 15 minutes, with the intent that it will reduce the time needed for multiple presentations and follow-on comment and response. The deadline for submission of a presentation may be waived upon the Moderator's discretion. • Electronic/visual presentations by any citizen must also be coordinated with the Moderator at least one week prior to Town Meeting. • All voters in attendance must be able to see and hear any presentation made, regardless of where they are seated in the venue.If this standard cannot be met then the presentation shall not be allowed as no voter, by happenstance of proximity to any presentation, shall have an advantage of more easily viewing any presentation over any other voter. Equipment availability is the responsibility of the petitioner/presenter. Technical assistance and arrangements for display equipment must be coordinated with the Town Clerk and Moderator, at least one week before the meeting. Computers, projectors and screens may be available. Use of an overhead projector is not allowed. Equipment malfunction or any other reason for lack of ability to use any planned electronic or other visual display will not invalidate consideration of the article or keep the body from considering the motion.It becomes the responsibility of the petitioner/presenter to present arguments in another form within the rules of the Town Meeting. Addendum B Town Bylaws Affecting Town Meeting Chapter 59 §59-1 Adjournment. When a Town Meeting shall be adjourned to a time certain that is more than fourteen(14)days from the time of adjournment,the Town Clerk shall cause notice of the time and place of such adjourned meeting to be duly posted in three(3)or more public places in each precinct in the town two(2)days at least before the time of holding said adjourned meeting,which notice shall also briefly state the business to come before such meeting. 11 TABLE OF CONTENTS Article# Title of Article Page ote Article 1. Reports of Special Committees Article 2. Reports of Receipts and Expenditures Article 3. Authorization of the Town Manager or Superintendent of Schools Regarding Contracts in Excess of Three Years Article 4. Authorization to Accept Grants of Easements Article 5. Authorization to Grant Easements Article 6. Amend General Bylaws-Add New Chapter-Chapter 103-Fingerprint-Based Criminal Record Background Checks Article 7. Amend Chapter 69-7.1-Fire Alarms-Connection Fee of the General Bylaws Article 8. Amend General Bylaws-Chapter 59 Section 6—Annual Town Meeting Date Article 9. Acceptance of Massachusetts General Laws Chapter 59 Section 5K—Senior Work Program Article 10. Adopt the Provisions of Massachusetts General Law Chapter 60,Section 3D-Elderly Disabled Tax Fund. Article 11. Petition the General Court-Rescind the Acceptance of Massachusetts General Law Chapter 31 Section 47- DPW Labor Service. Article 12. Reduction of Community Preservation Act Surcharge. Article 13. Petition the General Court-Special Act-Change in Liquor Quota-All Alcoholic Beverages for Package Stores-LaBotte a,LLC 1820 Turnpike Street. Article 14. Petition the General Court-Amend Charter for the Town of North Andover-Amend Chapter 8-Section 1— Town Election Date. Article 15. Petition the General Court-Amend Charter for the Town of North Andover-Amend Chapter 8-Section 3-1 —Procedures. Article 16. Compensation of Elected Officials. Article 17. Prior Years Unpaid Bills. Article 18. Establishment of Revolving Funds. Article 19. Amend General Fund Appropriation For Fiscal Year 2012. Article 20. General Fund Appropriation-Fiscal Year 2013. Article 21. Water Enterprise Fund Appropriation Fiscal Year 2013 13 i r fj DRAFT - Town of North Andover Annual Town Meeting Warrant June 12, 2012 (May 17, 2012) COMMONWEALTH OF MASSACHUSETTS ESSEX,SS. To either of the Constables of the Town of North Andover: GREETINGS: In the name of the Commonwealth of Massachusetts,and in compliance with Chapter 39 of the General Laws,as amended,and our North Andover Town Bylaws and requirements of the Town Charter,you are hereby directed to notify and wam the inhabitants of the Town of North Andover who are qualified to vote in Town affairs to meet at the North Andover High School,430 Osgood Street,Tuesday June 12,2012,at 7:00 PM then and there to act upon the following articles: Article 1. Reports of Special Committees. To see if the Town will vote to hear the reports of any appointed special committees; Or to take any other action relative thereto. Board of Selectmen Board of Selectmen Recommendation: Vote Required: Majority Vote Article 2. Reports of Receipts and Expenditures. To see if the Town will vote to accept the reports of receipts and expenditures as presented by the Selectmen in the 2011 Annual Town Report; Or to take any other action relative thereto. Board of Selectmen Board of Selectmen Recommendation: Vote Required: Majority Vote 15 i I Bylaws of the Town of North Andover by adding a new chapter, Chapter 103—Fingerprint-Based Criminal Record Background Checks to read as follows: CHAPTER 103 FINGERPRINT-BASED CRIMINAL RECORD BACKGROUND CHECKS Section 103-1 Purpose/Authorization In order to protect the health, safety, and welfare of the inhabitants of the Town of North Andover, and as authorized by Chapter 256 of the Acts of 2010,this by-law shall require a) applicants for certain Town licenses permitting the engagement in specific occupational activities within the Town as enumerated in Section 103.2 below to submit to fingerprinting by the North Andover Police Department, b) the Police Department to conduct criminal record background checks based on such fingerprints,and c) the Town to consider the results of such background checks in determining whether or not to grant a license. The Town authorizes the Massachusetts State Police, the Massachusetts Department of Criminal Justice Information Systems (DCJIS), and the Federal Bureau of Investigation (FBI) as may be applicable to conduct on the behalf of the Town and its Police Department fingerprint-based state and national criminal record background checks, including of FBI records, consistent with this by- law. The Town authorizes the Police Department to receive and utilize FBI records in connection with such background checks,consistent with this by-law. Section 103-2 Applicant's Submission to Fingerprinting by the North Andover Police Department Any applicant for a license to engage in any of the following occupational activities within the Town shall submit a full set of fingerprints taken by the North Andover Police Department within ten (10) days of the date of the application for a license for the purpose of conducting a state and national criminal record background check to determine the suitability of the applicant for the license: Liquor Licensee Manager or Alternate Manager of a Liquor Licensee Hawker and Peddler Hackney Carriage(Taxi)Operator Solicitors and Canvassers Dealers in Junk,Second-Hand Articles and Antiques Second-Hand Motor Vehicle Dealers Ice Cream Truck Vendor At the time of fingerprinting, the Police Department shall notify the individuals fingerprinted that the fingerprints will be used to check the individual's FBI criminal history records. I 17 background checks except as may be provided by law, regulation, and Town policy. The Town shall not disseminate criminal record information received from the FBI to unauthorized persons or entities. Section 103.6 Fees The fee charged by the Police Department for the purpose of conducting fingerprint-based criminal record background checks shall be set by the Board of Selectmen. A portion of the fee, as specified in Mass. Gen. Laws Chapter 6, Section 172B %z, shall be deposited into the Firearms Fingerprint Identity Verification Trust Fund, and the remainder of the fee may be retained by the Town for costs associated with the administration of the fingerprinting system. Or to take any other action relative thereto. Town Manager Board of Selectmen Recommendation: Vote Required: Majority Vote Article 7. Amend Chanter 69-7.1-Fire Alarms-Connection Fee of the General Bylaws. To see if the Town will vote to amend Chapter 69 Section 7.1 by deleting the language shown as stricken: Chapter 69 Section 7.1 Each alarm user shall on or before October 1St of each year remit to the Fire Department a service fee for the coming year for Master Fire Alarm Boxes and Digital Alarms. The fees shall be established by the Board of Selectmen. Those pr-apeAies that eonwi4 to a radio M_asstew Box that is e0fflpafible With the NP-A#h- Andover Fire DepaAment r-eeeivff shall no longff be billed under the existing fee straotufe,onee In accordance with the Town by-law the Board of Selectmen can establish fees,at any time,which reflect the costs of service provided. Fire alarm system devices owned by the Town of North Andover shall be exempt from the provisions of Sections 69-7 and 69-7.1. Until a new fee is established by the Board of Selectmen,the Town shall continue to charge the same fees that were in effect immediately prior to the effective date of this bylaw. Chapter 69 Section 7.1 as amended to read: Each alarm user shall on or before October 1St of each year remit to the Fire Department a service fee for the coming year for Master Fire Alarm Boxes and Digital Alarms. The fees shall be established by the Board of Selectmen. In accordance with the Town by-law the Board of Selectmen can establish fees,at any time, which reflect the costs of service provided. Fire alarm system devices owned by the Town of North Andover shall be exempt from the provisions of Sections 69-7 and 69-7.1. 19 I I I Article 9. Acceptance of Massachusetts General Laws Chapter 59 Section 5K—Senior Work Program. To see if the Town will vote to accept the provisions of MGL Chapter 59, Section 5K, authorizing the continuation of a Senior Citizen Property Tax Work-off Program, and further to allow an approved representative, for persons physically unable, to provide such services to the Town and to authorize the Board of Selectmen to adopt regulations for implementing this program consistent with the intent of the statute; Or to take any other action relative thereto. Town Manager Board of Selectmen Recommendation: Finance Committee Recommendation: Favorable Action Vote Required: Majority Vote EXPLAI'�TAfiI)Ni The following is the t�levant statute SIN Hm S., 111 any city or towu,which accepts the rprov�sions of this se op�sthe board of;' selectmen of aovvn or m a y hav, g a town council form of government fhe town,. council ar the mayor with the>pprovul of the elty counc a Katy may establish a program to: allowy;persons;over the age of fi0 to volunteer t[+ prude gervs,to such city ok town In:%exchange fors such volun#eer serwees the elly,bar town 'shall reduce tha Real rupertiy tnx`' obligatohs of such per"son over the age of 61)'on his tax balls+anti any reduction so)rovi ded shall tie m addition to any,* emphon or aba#ement fio wh�cli any such person is otherwise en#itlgd and no such person sliaai rece� efa rate pf,®r,`be cieijrte�l wath more than the,,currenY;' mmymum wage of suant the commonwealth,per boor fo l serincps provided pur reductbn nor;.;shall.the reduction bf the real property tax bill exceed $1y0h'p in a given year It shall'be the responsibility of the city$or town:to mauttam a record for each.taxpayer; mcluaing, bt�t'not hmlted#o,,'t a Rusher of hours of xer ce And the total aInount by wh ; the real property tax;las beenvreduced and to erode a copy of such record to the assessor m>" hu order that the actual tax bill„reflect the redRCed rate A, of nch rc�oYd shall also be: p„rovided to the.to a er r�orto the�ssuahc of the actual taxbill xp Y p cuih ctttesnd towns shall,,: have the power to create local%rules and procedure's for imp pmeutmg flogs c'661 0n,any wad, consistent with the intent of this section in no instance shall the amQant by uwh�ch a personas property #ate' Iwh�ltty is re�nced,tn' exchange for the provision'qf services be chnssdered tRcome, wages, or emplo�iiaent Cor: purposes of,tax!'ation,as proyitled to`ehspteY>b2� for;the paposegfz withhplrhng taxes as provii ec1 inchapter;6218 for the purposes e,workers compensation.as provuled in;chapter''` 152 or,:any otter;applicable provisions,of the;Gener ail Laws,but such person while`providing such,services,shall'be consi�ered a public employee fbr the purposes of chapter 258;Jut such? services shall be deemed employment Cot”"thee purposes:or Meinplbyment ina rance`is provided iii chapter 151A. , A city or town„bby'vote of itslegislative body,subject to its charter,riray adjust,the s exemption'' in this clause by: (1)all 'an approved representative,for persons physically unable, to!' 21 I Article 11. Petition the General Court-Rescind the Acceptance of Massachusetts General Law Chapter 31 Section 47-DPW Labor Service. To see if the Town will vote to instruct its representatives to the General Court to file special legislation for the purpose of exempting laborer, skilled laborer,mechanic and craftsman worker titles from civil service. Said Act shall read: AN ACT EXEMPTING THE POSITIONS OF LABORER, SKILLED LABORER, MECHANIC AND CRAFTSMAN IN THE TOWN OF NORTH ANDOVER FROM THE PROVISIONS OF THE LABOR SERVICE LAW. Be it enacted by the Senate and House of Representatives in General Court assembled,and by the authority of the same,as follows: SECTION 1. Notwithstanding any general or special law to the contrary, the positions of laborer, skilled laborer, mechanic and craftsman in the Town of North Andover shall be exempt from the provisions of Chapter 31 of the General Laws. SECTION 2. The provisions of Section 1 shall not impair the labor service status of any person holding the position of laborer,skilled laborer,mechanic or craftsman in the Town of North Andover on the effective date of this act. SECTION 3. This act shall take effect upon its passage. Or to take any other action relative thereto. Town Manager Board of Selectmen Recommendation: Vote Required: Majority Vote Article 12. Reduction of Community Preservation Act Surcharge. To see if the Town will vote as follows: Should we,the tax payers of North Andover,reduce the Community Preservation Act surcharge? The CPA was enacted in 2002 at the maximum of 3%. The state matched dollar for dollar. Since that time,many projects benefiting the town have been completed—protection of our drinking water,assisting in renovations of the Town Hall,Steven's Estate,the Senior Center and more at a cost of 21 million tax dollars. Due to the downturn in the economy,the State has reduced their matching amount to.26 cents on the dollar. Is it time to follow the Commonwealth lead and reduce our spending? The CPA surcharge is an additional cost on your real estate tax bill. Should we reduce the surcharge from 3%to a more reasonable land 1/2%? Petition of William P.Callahan and others Board of Selectmen Recommendation: 23 Vote Required: Majority Vote—Hand Count Votes are Taken if Not Unanimous Article 15. Petition the General Court-Amend Charter for the Town of North Andover- Amend Chapter 8-Section 3-1 — Procedures. To see if the Town will vote to petition the General Court to amend the Town Charter for the Town of North Andover by adding the underlined language and deleting the stricken text as follows: Section 3 Procedures 2-3-1 The town meeting shall meet galaf y bet' eea April enly eighth aiidMaytwenty eighth, as specified in the town by-laws and in accordance with Massachusetts General Laws Chapter 39 Section 9 to consider and adopt an annual operating and capital budget,and to act on other matters. The meeting shall be continued on other days,until all articles in the warrant have been acted upon. Or to take any other action relative thereto. Town Clerk Board of Selectmen Recommendation: Vote Required: Majority Vote—Hand Count Votes are Taken if Not Unanimous q , B+XPT ANATIC)N =This legislation tsbemg proposed to change the North AM Chapter That ongtnally hid, dates ineluded: At the2tine,,4 the chapter`enactment'these-dates were.conststent;fyitti the St tote 1Tavmg the pharter be m accorcMance,with Massachusetts;GeneraLLaw chapter 39 5t�on 9 ws71 be consistenfwith any ifu e,`ch es,in`";thesfatute ' Article 16. Compensation of Elected Officials. To see if the Town will vote to fix the salary and compensation of the elected officers of the Town,as provided by Section 108 of Chapter 41 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 Or to take any other action relative thereto. Board of Selectmen Board of Selectmen Recommendation: Finance Committee Recommendation: Favorable Action Vote Required: Majority Vote 25 I �I I� I Article 18. Establishment of Revolving Funds. To see if the town will vote to authorize the following revolving funds for certain Town departments under Massachusetts General Laws, Chapter 44,Section 53E lh for the Fiscal Year beginning July 1,2012; FR�ws�iti�� `Func�,fi��4t�ri�s, � z y� u Account Revolving FY 2013 Number Fund Authorized to Spend Use of Funds Revenue Source Limit 1 2031204 Wheelabrator Director-Community Air quality monitoring Wheelabrator Host $ 35,000 Planning Development Community Agreement 2 2031205 Wheelabrator Director-Community To enforce Trash Wheelabrator Host $ 20,000 Public Safety Development Truck regulations Community Agreement 3 2031207 Health Dept- Director-Community Food Consultant fees Inspection Fees $ 20,000 Food Development and expenses related Inspections to program 4 2031208 Health Dept- Director-Community Septic Consultant Inspection Fees $ 15,000 Septic Development fees and expenses Inspections related to program 5 2031210 Field Director-Division of Field maintenance, Field rental fees, $ 10,000 Maintenance Public Works upgrade and related Grants,Donations, expenses and related Fundraising proceeds 6 2031211 Health Dept Director-Community clinic supplies and Clinic participant $ 30,000 Revolving Development other related fees,Grants, materials Donations,and related Fundraising proceeds 7 2031213 Youth and Assistant Town All programs and Participants'fees, $ 260,000 Recreation Manager activities,expense, Grants,Donations, Services part time help and related Revolving Fundraising proceeds 8 2031217 Elder Assistant Town Senior programs, Participants'fees, $ 20,000 Services Manager classes and activities Grants,Donations, -COA Revol and related Fundraising proceeds 9 Stormwater Director-Community Review,test and Review Fees $ 50,000 Bylaw Development and inspect Stormwater Services Division reports TOTAL $ 460,000 27 Article 19. Amend General Fund Appropriation For Fiscal Year 2012. To see if the Town will vote to amend the General Fund Appropriation for Fiscal Year 2012 as voted under Article 18 of the 2011 Annual Town Meeting; Increase Education by$65,000 for a revised total of$36,981,601 Decrease Snow and Ice Removal by$57,000 for a revised total of$695,448 Decrease Support Services by$65,000 for a revised total of$1,132,064 Increase Health and Human Services by$57,000 for a revised total of$1,039,289 For a Total Net(Decrease)/Increase of$0 and a Revised Total Appropriation of$76,878,055 And further to: Amount Voted Under Article 18 06/07/11 Revised General Fund Appropriation ATM Amendment Total GENERAL GOVERNMENT 2,182,398 0 2,182,398 PUBLIC SAFETY 8,806,071 0 8,806,071 EDUCATION 36,916,601 65,000 36,981,601 SNOW AND ICE REMOVAL 752,448 -57,000 695,448 PUBLIC WORKS 3,276,521 0 3,276,521 HEALTH&HUMAN SERVICES 982,289 57,000 1,039,289 CULTURE&RECREATION 828,357 0 828,357 SUPPORT SERVICES 1,197,064 -65,000 1,132,064 DEBT SERVICE 7,217,435 0 7,217,435 EMPLOYEE BENEFITS 14,173,346 0 14,173,346 LIABILITY INSURANCE 301,030 0 301,030 CAPITAL&RESERVES 0 0 0 FINANCE COMMITTEE RESERVE 0 0 0 GREATER LAW TECH SCHOOL 243,594 0 243,594 SCHOOL BUILDING COMMITTEE 900 0 900 Total Town Meeting Appropriation 76,878,055 0 76,878,055 Or to take any other action relative thereto. Board of Selectmen Board of Selectmen Recommendation: Finance Committee Recommendation: Favorable Action Vote Required: Majority Vote FINANCE`COMMITTEE EXPLANATION; r r This article seeks to 4ronsfer monies from;accounts with surpluses to,accoun"ts'with deficits for FY2012 The'result of an affirmative`or.�es vote will move momes"to accounts tliat are novv lcgown 4o' require funds and reduces,i6r'eliminates Elie need to c r`ry`forward deficits into Fthe FY2013 Budget. 29 Fiscal Year Fiscal Year Fiscal Year 2012 2013 2013 RECAP Department Board of Request Selectmen& Town Manager Recommend PUBLIC SAFETY Police Department 4,210,920 4,663,534 4,338,534 Fire Department 4,322,554 4,561,744 4,437,921 Public Safety Salary Reserve 0 0 173,958 Inspectional Services 251,255 266,872 252,898 Emergency Management 21,342 21,342 21,475 8,806,071 9,513,492 9,224,786 EDUCATION N A Public School 36,916,601 38,306,096 38,206,896 0 0 0 36,916,601 38,306,096 38,206,896 PUBLIC WORKS Administration 391,948 399,642 406,937 Street&Sidewalks 793,820 800,404 781,804 Solid Waste/Recycling 1,293,975 1,268,638 1,268,638 Fleet Maintenance 274,238 276,380 276,380 Structures&Grounds 522,540 538,411 534,611 Snow&Ice Removal 752,448 750,448 752,448 4,028,969 4,033,923 4,020,818 HEALTH&HUMAN SERVICES Health Department 215,835 197,026 203,845 Elder Services 242,863 249,004 249,369 Youth Service 243,197 269,676 257,142 Veterans Service 280,394 364,564 371,369 982,289 1,080,270 1,081,725 CULTURE&RECREATION Stevens Library 828,357 860,860 852,230 Festivals Committee 0 0 0 Recreation 0 0 0 Historical Commission 0 0 0 828,357 860,860 852,230 SUPPORT SERVICES Outside Auditing 60,000 57,000 57,000 Purchasing 48,876 47,877 49,016 Information Technology 988,188 922,422 932,586 Structures and Grounds 100,000 100,300 97,239 1,197,064 1,127,599 1,135,841 I 31 i Fiscal Year Fiscal Year Fiscal Year 2012 2013 2013 STATE ASSESSMENTS RECAP Department Board of Request Selectmen& Town Manager Recommend Spec Ed 4,602 0 0 Mosquito Control 85,849 90,126 90,126 Retired Teachers Health Insurance 1,405,517 1,316,435 1,316,435 Air Pollution Districts 8,484 8,849 8,849 Regional Transit 172,662 184,305 184,305 RMV Non Renewal Surcharge 20,640 19,800 19,800 School Choice 64,036 20,000 20,000 Charter School Assessment 70,095 39,861 39,861 Essex County Agricultural Assessment 49,087 74,850 74,850 1,880,972 1,754,226 1,754,226 General Fund Budget 79,251,414 81,560,924 81,219,892 AND TO FURTHER TRANSFER TO THE GENERAL FUND FROM SPECIAL REVENUE - $ 137,889 GLSD FROM SPECIAL REVENUE - $ 64,200 COMM PROG $ 202.089 Or to take any other action relative thereto, Board of Selectmen Board of Selectmen Recommendation: Finance Committee Recommendation: Favorable Action Vote Required: Majority Vote i 33 I III FINANCE COMMITTEE EXPLANATI©N 'C©NTINUED c We have transferred the recommendeu appropxiat►ans to the �PEB�Rescrve Fund and the,C,a ,- pt al tabilizatton Fwnd,to;tl► Fm pce Cow ntttee eser a Tate Fanab+ee Committee Iteserue'is an account designed to provide management with ltquidtty to`address deficits or emergencies as`,they ocut during the fiscal year,rwithout the need for• lltng a Special Town=Meeting: The-Committee has trot undertaken is,, ectston hghtt" I fl-,* srds to the fIP B apprq axtatton, $25,00Q is less>ahan +A i1hD15%�'��f tahe estii**tid SI6S mtlla its outstonding"hability for retiree healili benefits and cASis en face b such an tnmense habiltt , this symbohe aPproprtahon,'while important, is u1mo1y:finatally, fine The' Committee beliexes that these funds cane used more effectively to�atldress etustmg�rpgram needs,and eneourages nanagement•tA%work vfl►our..Islah delegauiin to find spiuon tq ow address our.nntstiding �ia�ility� egaxdm g,'onr declst eZS,h00 Capttal�; Stabtlizatton fund appropriation,ih Committee does not,'see a compelhng reason tn,build s, reserve wtttiout the corresponding capital plan to sped theseynMls ,Zf need fnrJemergen�y reptrs or unforeseenprbgram cxp ►ses,tie s aPP)roPrllatedto;� the Pimpce Committ ee Reserve at t'h"jk*' Ii 6n of fhe`Board aif Seleetn►en The Committee also encourages the,Board of Selectmen andGhe Town Managex to•.control. expenses ©n'average this budget recommends a 3 5°, increase,in Costs tlhen tempered to'' the previous fiscal year All efforts must be piade to tae tai and non tax revenue effict�ntly: Ottr predicative model continues to indicate,that labtii tvs#s beontl 1% are:tot sustainable; yet the reality''=is that all collective bargaining agreements ar",e fax Ixo�n that number We`; encourage the oard f Selectmen anr3 thel5thiooLBoard to challenge managemeni�toaxequire' all departments to come in;nnder bittlget, possibly,by as much,as 2pyo, through the use of', improyed purchasing,labor management and other tools at h"- dtsposal� Crittcal'life safety;: and other programs should be"exen%pt from this goal.'; To place this:goal into content,a �/o savings; to the bper$ting budget yields Sl 6 nilhon This•is;sufficient funding to address a;' nun►ber of critical sltrii tfalls and needs wtthin our community r Finally we wish to note that as you review this;budget and listen to the pt esentations a#Town'.'' `Meeting,tt is ultimately you the taxpayer who 3'untis thrs iiµdget< 'e encouge yp to as> , questions and, if available, resp�ctfglly requests that the B�iard of'Selectmen prt►vlde�d►et;; preliminary,•es, mated:ltersontiel and bysiness tax rates atecessary to sufipoi this budget at;, Town Meetnng.' l 35 I Article 22. Sewer Enterprise Fund Appropriation-Fiscal Year 2013. To see if the Town will vote to appropriate the amount of$4,873,303 in aggregate,for the purpose listed under the column "FY13 Recommendation: Town Manager, Board of Selectmen" for the Fiscal Year beginning July 1,2012 and ending June 30,2013;without regards to individual line items,and to operate the Sewer Enterprise Fund,that$4,873,303 be raised from sewer receipts and from these receipts$529,744 be transferred to the General Fund for indirect expenses; SEWER ENTERPRISE FY13 Recommendation Town Manager FY12 Department Board of Selectmen Budget Request Personnel 592,222 505,273 509,732 Expense 294,900 307,176 292,175 GLSD Assessment 1,725,000 1,811,000 1,541,247 Settlement 56,000 0 0 Debt Service 2,048,481 2,000,405 2,000,405 Sub-Total Direct Expenditures 4,716,603 4,623,854 4,343,559 Admin/indirect 471,554 529,744 529,744 Total Sewer Enterprise 5,188,157 5,153,598 4,873,303 Or to take any other action relative thereto. Board of Selectmen Board of Selectmen Recommendation: Finance Committee Recommendation: Favorable Action Vote Required: Majority Vote FINANCE COMMITTEE EXPI IATi+©1' ., The purpose of this article.info funtl:the SlWer Enterprise Fund fThe funtl.ts supported b sewer,usage cbarges,which according to the Town, anager,will likely aner'ease to,supporit this appropriation of funds The water rate is set by the Board of Selectman and is established based on the total expenses; of the°department, ipeluding'debt service,direct and;indirect expenses and"the use,of server services by residents and businesses'.Indirech costs are;associated with the Divisipn of Public Works`supervision, General Government costs and`fringe benefits that are related to the operation of tfie Water Department andl are expensed through the:General Fund,or operating budget: .An affirmative or yes vote willensure tike operation of.fhe`department according'to projected needs; As noted.previously, we respectfully request that the Board of"Selectmen; provide the.pzeliminary,estimated rates necessary to supporttiiis budget at Town'Meeting 37 III III Article 25. Capital Improvement Plan Appropriation Fiscal Year 2013.To see if the Town will vote to fund the Capital Improvement Program as listed under the heading "Board of Selectmen/Town Manager Recommendations"and with the language included: FY13 CIP Recommendations Line# Project Description Fund Code BOS,Town Manager's Recommendations 1 Roadways B/N-G $ 476,700 2 Sidewalk Reconstruction B/N-G $ 50,000 3 Building Maintenance B/N-G $ 50,000 4 Replace Fire Chiefs Vehicle B/N-G $ 34,000 5 Replace Mobile Data Terminals B/N-G $ 90,258 6 General IT B/N-G $ 40,000 7 School Dept IT B/N-G $ 165,098 8 Design Work(Central Office&Kittredge B/N-G $ 359,500 School Gym) General Fund Total $ 1,265,556 9 Water Main Replacement B/N-W $ 573,000 10 Water Meter Installation B/N-W $ 60,000 11 Flocculation&Sedimentation Building B/N-W $ 65,000 12 Concrete Repairs and Coating B/N-W $ 97,000 Water Enterprise Fund Total $ 795,000 13 Rea's Pond Sewer Pump Station B/N-S $ 250,000 Replacement 14 School St&Bunkerhill Sewer Replacement B/N-S $ 100,000 15 Osgood St Sewer Preliminary Design B/N-S $ 300,000 Sewer Enterprise Fund Total $ 650,000 *Fund Codes spelled out below Funding Recommendation Code Totals Raise and Appropriate-General Fund R&A-G $ - Raise and Appropriate-Water Enterprise R&A-W $ - Raise and Appropriate-Sewer Enterprise R&A-S Bonds/Notes-General Fund B/N-G $ 1,265,556 Bonds/Notes-Water Enterprise B/N-W $ 795,000 Bonds/Notes-Sewer Enterprise B/N-S $ 650,000 Unexpended Bond Proceeds(Sewer Enterprise) $ (650,000) Total All Capital Projects(New Borrowing) $ 2,060,556 39 FIlYAlYCE"COMMITTEE E PI.ANATI011T A capital iinproyement plan is a malor,non,, j routine expenditure.tor new°,constrii etion; nlainr equipment purchase, or 4mproyement tb existing buildings,faeiUhes„land or infrastructure with an estimated useful life of fire,years}b ,more,'and a=cast of$25,000"or more. Items w O plan are'funded by di bt,the Town will:” issue bonds of 10,15 br 2b years fdependmg a'Pon the`.Pr+ e ar►d pad principal and`�ntere,r; payments older that termhe bonds may bi'gene>al obligation ifundeii b the general tax` ieyyj,pr special obhgg un I uA ed by mater or sewer test In reyiewing fhe proposed protects,the �+in#jpe Comnt�ittee„relied�on the Tpwn Manager's x cri e iw,form fugded for the nz#dear In all cases but.; two,we have agreed,kliat the use bf debt to fhpanee the purchage sbffware equipment and other ijnproyepii*nts�s:prudent and warransed a'Committee we $ye voted unfaVOrabty on the,fotlowingvo items,for?fhe reasi~ns nod ,� IChe first item reiaites to the proposed seer enterprise budget apprppri�tion fora funding to design the newer extension;protect;along the Route 1<25 eoxridore near the Lucent::. facility: This is m) ii small fraction bt the total funding that wdl beF required. en`gage,bwlit .' and complete the sewer protect itself 'At ttns?tme,the Comffiittee has not been satisftied witli. the potential fmancn g options of this'-project;nor have we:I�eeu satisfied , the potenhsl", iphtins and feel thAi there js more W.6t, #o ilo in Yegards to presenting vat ous itse relafed; ophontt and plsins . the second iteiq relate$ to tae ruesforunrds to begmsirgn wor)� based upon the kacilihesssti r Plah Commission ,Agau�,,the fugds requested are $matlporhon of the overall funds that will`lie needejd if this proles#?.proceeds At tWs nine,the Commit tee`; has nat been-"satisfied,that all of'the costs of this,capital protect*aye'been identded analyzed and,consequently,whether the design funds should lie reeoinmend0 fit Grab y There is a possbihty that recpmmendations or'amounfs on evils page"iaaY change befur`e Tom Meeting as adtiiihonal infbrmat,on becomes iivailable If necessary,an update will bte'`lianiled; out a#Town IY�+eehng �� Article 26. Energy Services Company Project Funding. To see if the Town will vote to raise and appropriate $4,383,076 by bonding or otherwise to make improvements to school and town building as identified in the Energy Audit prepared by Ameresco Inc. and detailed in the Appendix of the printed Warrant, and to meet this appropriation,the Treasurer with the approval of the Board of Selectmen is authorized to borrow$4,383,076; Or to take any other action relative thereto. Town Manager Board of Selectmen Recommendation: Finance Committee Recommendation: Unfavorable Action Planning Board Recommendation: Vote Required: Two-thirds(2/3)Vote I 41 I �I Board of Selectmen Recommendation: Finance Committee Recommendation: Favorable Action Vote Required: Two-third(2/3) FINANCE CUl► M TTIEE EXPLANATION This.artacle seeks 46' 4:mend"the ampunt of borrow authored for this program �n a pre�+ious year' ap�talTnvestment Plan This is a te e appxopr�ak�on;; based on updated spending^,proieetions Smce flue is funded through the Community`„ Preservations Aet `Fund,,thQ,amendment'does not unpa t the u�allab ty of fun ng foac" municipAl pi ograms: , Article 29. Report of the Community Preservation Committee and Appropriation From the Community Preservation Fund. To receive the report of the Community Preservation Committee and to see if the Town will vote to raise, borrow, transfer and/or appropriate from the Community Preservation Fund, in accordance with the provisions of Massachusetts General Laws Chapter 4413, a sum of money to be spent under the direction of the Community Preservation Committee; (Information to be provided by CPA Committee prior to warrant being signed). Or to take any other action relative thereto. Community Preservation Committee Board of Selectmen Recommendation: Finance Committee Recommendation: Favorable Action Planning Board Recommendation: Vote Required: Majority Vote FINANCE `COMMITTEE EXPLANATI(tN: The``Community Preservation Act (CPA)', addresses conim Okx ssues such as Xcquxsmtiuu end preservation of open space,creation and supjiort of `afforrable hop`s•in iop of historic; buildings anal'` landscapes,arid creation and support`of recreationaLopportunities Tlie CPA;was adopted at a Special Town Meeting;m January42AOI,and,,.by the voters at the following T;ovvn Election in Maich',of the same year `As,:adopted," it levies a °lo,`surcharge,on;p operity'taxes,rWit two` exeinQtnon§.$100;000.of the`ualue:of every res dential,propertys#nd:ascomple ,exemphp�n on property `owned and occupied by people who qualify fox"ow mcome:tious�ng or'glow or,' moderate=income senior housing.. 43 Article 32. Transfer to Stabilization. To see if the Town will vote to transfer funds into the Stabilization Fund; Or to take any other action relative thereto. Board of Selectmen Board of Selectmen Recommendation: Finance Committee Recommendation: Favorable Action Vote Required: Two-third(2/3)Vote Article 33. Transfer to OPEB Stabilization. To see if the Town will vote to transfer funds into the OPEB Stabilization Fund; Or to take any other action relative thereto. Board of Selectmen Board of Selectmen Recommendation: Finance Committee Recommendation: Vote Required: Two-third(2/3)Vote Article 34. Amend North Andover Zoning Bylaw — Section 8.1.4(a) Off-Street Parking General Requirements. To see if the Town will vote to amend the Town of North Andover Zoning Bylaw, Section 8.1.4(a)Off-Street Parking General Requirements in order to allow seasonal outside seating to not counts towards the parking requirements. Amend Section 8.1.4(a)by adding Note 8 to the use table as follows: Notes: 8. Seasonal outside seating for food establishments shall be exempt from Section (a) of this regulation as long as the seating does not exceed 25% of the indoor seating or a total of twenty outdoor(20)seats,whichever is greater; And further that the non-substantive changes to the numbering of this bylaw by the Town Clerk be permitted in order that it be in compliance with the numbering format of the Zoning Bylaws of the Town of North Andover. Or to take any other action relative thereto. Planning Board Board of Selectmen Recommendation: Planning Board Recommendation: Vote Required: Two-third(2/3)Vote I� 45 Article 36. Amend North Andover Zoning Map -1080 Osgood Street-Assessors May 35-Parcl 19 from Industrial 2 (I2) to Business 2 (B-2). To see if the Town will vote to amend the Town of North Andover Zoning Map,Assessor's Map 35 Parcel 19 from Industrial-2 to Business-2; or to take any other action relative thereto. IX p n t , yr i z } Y i Cam.. { � S R I l y4 H{ x125 ' r 3"a � t t X T t Y 1 � 1 c � t f � 1 Planning Board Board of Selectmen Recommendation: Planning Board Recommendation: Vote Required: Two-third(2/3)Vote 47 c. Areas designated as flood plain on the North Andover Flood Insurance Rate Maps may be determined to be outside the flood plain district by the Building Inspector, in consultation with the Director of the Division of Public Works, if an accurate topographic and property line survey of the area conducted by a registered professional engineer or land surveyor shows that the flood plain contour elevation does not occur in any area of proposed buildings, structures,improvements, excavation,filling,paving,or other work activity. The person requesting the determination shall provide any other information deemed necessary by the Building Inspector, in consultation with the Director of Division of Public Works to make that determination. If the Building Inspector,in consultation with the Director of the Division of Public Works,determines that the Flood Insurance Rate Maps are in error,the subject area shall not be regulated as occurring within the Flood Plain District, and any such determination shall be noted on the Flood Insurance Rate Maps. Nothing in this section shall prohibit the Conservation Commission, Board of Health, or other Town officials or Board from making non- zoning determinations of the flood plain or performing their official duties. 4. NOTIFICATION OF WATERCOURSE ALTERATION If a landowner or project proponent proposes to alter or relocate any watercourse, that person shall notify the following parties and provide evidence of such notification to every town board or official who has jurisdiction over such alteration or relocation prior to or at the time of applying for any approval that is required to perform such alteration of relocation: a. Notify in a riverine situation, the following of any alteration or relocation of a watercourse: 1. Adjacent Communities 3. NFIP State Coordinator Massachusetts Department of Conservation and Recreation 251 Causeway Street Suite 600-700 Boston,MA 02114-2104 4. NFIP Prop-ram Specialist Federal Emergency Management Agency,:Region-1 99 High Street,e Floor Boston,MA 02110 5. REFERENCE TO EXISTING REGULATIONS The Floodplain District is established as an overlay district to all other districts. All development in the district, including structural and non-structural activities, whether permitted by right or by special permit must be in compliance with Chapter 131, Section 40 of the Massachusetts General Laws and with the following: a. Section of the Massachusetts State Building Code which addresses Floodplain and coastal high hazard areas(currently 780 CMR 120.E b. Wetlands Protection Regulations, Department of Environmental Protection (DEP) (currently 310 CMR 10.00); c. Inland Wetlands Restriction,DEP(currently 310 CMR 13.00); a [C W e. Minimum Requirements for the Subsurface Disposal of Sanitary Sewage,DEP(currently 310 CMR 15,Title 5); 49 Article 38. Amend Section 16.2 of the Zoning Bylaw-Allow Drive-thru Restaurants in CDD1 District. To see if the Town will vote to amend Section 16.2 of the Town of North Andover Zoning Bylaws, in the Corridor Development District 1 (CDD1) by inserting the following language: " Drive-thra restaurants shall be permitted within the CDD1 zone provided that they are located more than 250 feet from the R6 zoned district." And further that the non-substantive changes to the numbering of this bylaw by the Town Clerk be permitted in order that it be in compliance with the numbering format of the Zoning Bylaws of the Town of North Andover. Or to take any other action relative thereto. Board of Selectmen Board of Selectmen Recommendation: Planning Board Recommendation: Vote Required: Two-third(2/3)Vote 51 APPENDIX EXECUTIVE SUMMARY OF FACILITIES REPORT 53 I I Public Comment Town Manager' s Report 9 POLICE am amm NERE am am D E P A R T M E 'Community Partnership" The Of(ic�e of Paul Ji cff flklgh(,c CHIEF OF POLICE TO: Andrew Maylor,Town Manager FROM: Paul J. Gallagher, Chief of Police DATE: May 14, 2012 RE: Lieutenant Recommendation I have put a lot of careful thought into my recommendation for the next North Andover Police Lieutenant. In October 2011 four Sergeants took the civil service test, two of them passed. I am very pleased to say that the two that did pass are both highly qualified for the position and outstanding candidates. Sergeant Eric Foulds is a 23 year veteran of the department. In November 2011 he changed his shift to the day shift and since then has become more engaged in the workings and day to day operations of the department. He has begun to learn the management view while continuing to motivate the shift to reduce crime and promote public safety. Sgt. Foulds has taken on many training responsibilities and has assisted in our scenario based training exercises as well as leading roll call trainings. Sgt. Foulds has become a valuable asset to me as a Chief. He works well with all the officers,the general public and handles emergency situations with tact and experience. I am always comfortable when I know he is in charge of the shift. He is fully engaged in the community programs. I am grateful he coordinates the annual Santa Claus Parade and the police/fire family cookout while representing the North Andover Police Association. Provisional Lieutenant Charles Gray is an 11 year veteran of the department. Lieutenant Gray assumed the Criminal Investigations Division Commander position in August 2011 after I was promoted to Chief. While assuming these new duties,he continued to be the Training Officer for the department as well as the K-9 officer. This additional workload was assumed with extended, non-compensated hours and at a great benefit to the department. Lieutenant Gray has taken our training to the next level. After revamping the in-service program in 2009,he has implemented roll call trainings, field training exercises and recruited officers to become instructors for our in- service programs. Other police departments have modeled their training after Lieutenant Gray's initiative. He has completed leadership classes with the FBI LEEDA program and a certificate from Suffolk University for Public Safety Administration. Lieutenant Gray has become a certified sexual assault investigator and has assumed my former position working with our DEA counterparts in supervising drug investigations. Both candidates recently accompanied me to the Massachusetts Chiefs of Police Annual Training for Chiefs & Command Staff conference in Westborough. These officers are the future leaders of the department and work very well together. As a team they have improved the day to day operations of the department. I feel confident as Chief that I have a two excellent officers who have shown that they are willing to do what is right,not only for the department,but for the whole Town. This has been a very difficult decision and they did not make it any easier by being tied in their scores with Civil Service. After very much consideration I am recommending that Provisional Lieutenant Charles P. Gray be the next permanent Lieutenant. I would also like to add I will work closely with both officers and offer Sergeant Eric Foulds training opportunities to fine tune his managerial skills. I i i' °�- 9 P 0 H EMEENNEW mom} ill 1 JAINUM — am am MW NEW- MW amm—aaw UP �. s "> "Community Partnership" 'File Offloe,(Ir Paul J.Galla deer CHIEF OF POLICE TO: Andrew Maylor, Town Manager FROM: Paul J. Gallagher, Chief of Police DATE: May 14, 2012 RE: Police Sergeant Recommendations After careful review of the candidates for two Police Sergeants I am recommending the following officers; Daniel P. Lanen is an eighteen year veteran and our medical training instructor. Daniel J. Crevier is a fourteen year veteran, Accident Reconstruction expert,NEMLEC Rapid Response Team member and currently a Provisional Sergeant. I i s 9.99 ZzEr 9 j a X 4 P 4x C UNNIMMEW ARM AMW ow MW am moor- u: a Y 1 D E P A R T M E N T "Community Partnership" The Office of Paul J.Gallagher CHIEF OF POLICE TO: Andrew Maylor, Town Manager FROM: Paul J. Gallagher, Chief of Police DATE: May 14,2012 RE: Police Officer Recommendations After careful review of the candidates for three Police Officer openings I am recommending the following officers; Brian L. Faye Michael J. Reardon Steven J. Corr All officers have PASSED the prerequisites per Massachusetts Human Resource Division and the background investigation of the North Andover Police Department. If you approve the recommendations they will attend the Lowell Police Academy starting June 4, 2011. I From:Vicky Matheson jmailto:VMatheson(&brooksschool.org] Sent: Monday, May 07, 2012 3:24 PM To: Maylor,Andrew Subject: Brooks Request for Use of Town Common Dear Mr. Maylor, I am sending you this email on behalf of John Quirk,Associate Head for School Affairs at Brooks School. We sent it previously to townmanaeer @townofnorthandover.com Thanks for your help. Regards, Vicky Matheson Administrative Assistant Dean's Office Brooks School North Andover, MA 978-725-6300 86 Hi Mr. Maylor, Hope all is well with you. Hard to believe it's almost May again,and time to send this note. I am again writing to request permission to have our graduating seniors (about 90 students)take a picture at the Phillips Brooks statue on the Old Common.This year, we would hope to wrap up a community service day at the Common, taking our picture sometime around lunchtime on Thursday, May 24. It goes without saying, I hope, that we'll leave everything as we find it.We have at times in the past had a picnic, too, but that is not in the plans currently. I think I recall that there was is form we needed to complete last year. If you could send that along, I'll get it turned around right away.This picture has become something of an honored graduation week tradition, and we look forward to it again this year! Have a great weekend. Best, John H. Quirk Associate Head for School Affairs Brooks School Please note the Massachusetts Secretary of State's office has determined that most entails to and from municipal offices and officials are public records.For more infonration please refer to:hftp:/Avww.sec.state.ma.us/pre/preidx.htm. Please consider the environment before printing this email. Johnson, Adele From: Vicky Matheson [VMatheson @brooksschool.org] Sent: Tuesday, May 15, 2012 5:17 PM To: Johnson, Adele Subject: RE: Use of Town Common for Senior Pictures Dear Adele, Below is the email I received from Mr. Maylor. When I spoke with Mr. Maylor, he did not think we had to complete the application. We will be happy to send it to you if required. Please let me know how to proceed.Thank you in advance for your help. Regards, Vicky Matheson Administrative Assistant Dean's Office Brooks School North Andover, MA 978-725-6300 x3286 Vicky, I approve your request and will make the selectmen aware of the event. Regards, Andrew W. Maylor Town Manager Town of North Andover 120 Main Street North Andover,MA 01845 Phone 978.688.9510 Fax 978.688.9556 Email amaylor @townofnorthandover.com Web www.TownofNorthAndover.com From: John Quirk Sent: Tuesday, May 15, 2012 5:07 PM To: Vicky Matheson Subject: FW: Use of Town Common for Senior Pictures 1 APPLICATION FOR THE USE OF THE NORTH ANDOVER TOW O T' V O� . v , Please read the attached"Regulations for the Use North Andover Town Common"before completing this a 1 ation. I 'r. .,. , Section 1: General Information OFFICE DE TOWN MANAGER, Name of North Andover group or individual applying for use of the Town Common: Note: The applicant,if an individual must be a resident of North Andover or,if a non-profit organization must have its principal place of business located in North Andover. North Andover Address of Group or Individual: Name of Contact Person: &L400 lY� Phone Number of Contact Person: " n U&A 6 5a!! Email Address of Contact Person: Date(s)that Town Common use is requested: Note: Use is limited to one day only with allowances for set up and removal one-half day prior to the use and one-half day after use, unless it is considered a holiday display pursuant to Section 9(b)of the Town Common Use Regulations. Holiday displays may be allowed from Thanksgiving Day until the following January 7en A) Is the purpose of the use of the Town Common for the public display of art, banners,signs and symbols? Yes No B) Is the purpose of the use of the Town Common to conduct an event where more than twenty people may assemble and/or participate? Yes No If the answer to Question A is yes, please complete Section 2. If the answer to Question 8 is yes,please complete Section 3. If the Answer to Questions A& 8 are both yes,please complete both Section 2 and Section 3. Section 2: Use of the Town Common for the Purpose of Display Please describe what you will be displaying including a detailed description and dimensions: Please provide a sketch or picture of what you will be displaying. Will you need access to electricity for your display? If yes,for what purpose Please indicate on the attached map approximately where on the Town Common the display will be erected. 'I Section 3: Use of the Town Common for the Purpose of Conducting an Event Please describe the nature and purpose of the event: The event will begin at a.m./ . and end at a.m./ .m i L In total, how many individuals do you anticipate attending the event?4� �2 w\cw\,s <2 (LA C kACVS At any one time during the event, what is the maximum number of people expected to be on the common? e (� Please indicate on the attached map approximately where on the Town Common the event will take place. Who will be the person or persons representing the applicant who will be present throughout the event? If these persons will be taking shifts, please provide the time of their shifts: Will you be erecting any temporary structures on the common such as tents,fences, athletic equipment? /\Jb— If yes, please describe the size and type of structures: Will you need access to electricity for this event? No If yes,for what purpose: Will you be serving any food or beverages during the event? �y 4kA L-�&\O '' tAS) Will you be charging a fee for any services provided such as food, beverages,games, races,etc.? M3 If yes, please provide a fee schedule and attach. Please describe where vehicles of participants in the event will park: h. MAA)N4 a-1 m rA 4AIt- CcmwyY,,- A. Sb6eeAL— &OrAA LY65� Please describe what your clean up plans consist of in terms of number of people assisting in the clean up, how trash will be removed from the common and disposed, etc.: h r �k v V) Town Common Application Page 2 Section 4: Acknowledgements and Signatures By submitting this application, the signer of this form agrees to the following: 1) That the signer is duly authorized to sign the application on behalf of the applicant and is a resident of North Andover or works for a non-profit organization whose principal place of business is located in North Andover. 2) That the user of the common will comply with all rules, regulations and conditions applicable to the use of the common. 3) That the user of the common will hold the Town, its employees and agents harmless from any and all claims,suits,causes of action,judgments and demands of any nature made or obtained by third parties which result from activities or actions of the Town of North Andover, its agents or servants under this permit and if the judgment is entered against the Town of North Andover, said judgment will be paid by said applicant together with all interest thereon. Signed: wJSrl�� uW� Printed Name: u-1 or\ Date: X115 2012 Return completed application to: Town Manager's Office North Andover Town Hall 120 Main Street North Andover, MA 01845 (978) 688-9510- Phone (978) 688-0516—Fax tyr:secreia rcpt �:r ansd�e�.con- Town Common Application Page 3 -F J. Johnson, Adele From: Carney, John Sent: Wednesday, May 16, 2012 2:49 PM To: Johnson, Adele Cc: Gallagher, Paul Subject: RE: Please send me your recommendations ASAP The Police Department recommends favorable action. Lt.John Carney Operations Divison Commander North Andover Police Department 1475 Osgood Street North Andover,MA 01845 Phone 978.683.3168 Fax 978.686.1212 Email jcarney @napd.us Web www.TownofNorthAndover.com i I I From: Johnson, Adele Sent: Wednesday, May 16, 2012 2:48 PM To: Carney, John; Gallagher, Paul; Thibodeau, Bruce; Barry, Nancy; Melnikas, Andrew; McCarthy, Fred Subject: FW: Please send me your recommendations ASAP Sorry for the short notice, but I would appreciate your recommendations for the use of Town Common. The BOS is meeting on Monday, May 21, 2012. Thanks, Adele J.Johnson Adminstrative Secretary Town of North Andover 120 Main Street North Andover,MA 01845 Phone 978.688.9510 Fax 978.688.9556 Email aiohnson @townofnorthandover.com Web www.TownofNorthAndover.com I 1 I INTEROFFICE MEMORANDUM DATE: May 16, 2012 TO: Adele Johnson, Administrative Secretary FROM: Bruce Thibodeau, Director of Public Works CC: RE: Girl Scout Get Together The Division of Public Works has no objection to the request from Kristen Mullin to hold a get together for Girl Scouts and their mothers on the North Andover Common, June 12, 2012 from 3:30pm to 5:3 0pm. Please remind Ms Mullin that there are to be no vehicles parked on the Common. If she needs any assistance from the DPW, please have her contact my office. I I I I Johnson, Adele From: McCarthy, Fred Sent: Thursday, May 17, 2012 1:45 PM To: Johnson, Adele Subject: RE: Please send me your recommendations ASAP Adele, The Fire Department recommends favorable action for a scheduled event involving the Girl Scouts on the Town Common on June 12, 2012 Regards, Lt Frederick McCarthy Fire Prevention From: Johnson, Adele Sent: Wednesday, May 16, 2012 2:48 PM To: Carney, John; Gallagher, Paul; Thibodeau, Bruce; Barry, Nancy; Melnikas, Andrew; McCarthy, Fred Subject: FW: Please send me your recommendations ASAP Sorry for the short notice, but I would appreciate your recommendations for the use of Town Common. The BOS is meeting on Monday, May 21, 2012, Thanks, Adele J.Johnson Adminstrative Secretary Town of North Andover 120 Main Street North Andover,MA 01845 Phone 978.688.9510 Fax 978.688.9556 Email aiohnson @townofnorthandover.com Web www,TownofNorthAndover.com I From: noreplyCatownofnorthandover.com [mai Ito:noreplly(ccbtownofnorthandover.comI Sent: Wednesday, May 16, 2012 2:43 PM To: Johnson, Adele Subject: Please note thr:Massachusetts;.e,tet..iry ofState s t fic r has deterroined that most ern ads to and frorn munidpal offices"and officials We Public Fot more infrxr manor ptease refer to:httr)://www.sec.state.ma.us/pre/preidx.htm. 1