FY 2019/20 Recommended Budget Town of Manchester, Connecticut March 13, 2019

FY 2019/20 Recommended Budget Summary Total General Fund budget $192,578,917 Expense increase of 2.84% Results in mill rate increase of 2.26% Modest increase in sewer rates (2.0%) and no increase (0%) in water rates Fire Fund: 1.57% tax increase; includes savings in overtime due to new firefighter positions added in current year plus 75% grant reimbursement for those positions

FY 2019/20 Recommended Budget

FY 2019/20 Recommended Budget FY 2019/20 Financial Highlights- Town Includes overall Town government increase of 2.99%, or $1,802,977 Town government operations (excluding non-operating expenses) increase by $396,972, or 0.79% Includes shift of Town retiree pension costs to non-operating budget; net pension increase of $260,617 based on valuation of pension funds Increase of $862,763 or 2.26% for wages & contractual salary adjustments Health insurance increased by $528,085; total general fund (Town-side) cost $9,751,848

FY 2019/20 Recommended Budget FY 2019/20 Financial Highlights- Town Proposed position to focus on digital communications, social media platforms, Channel 16, etc. Downtown District manager position shifted from Downtown District Fund to General Fund; decreases Special Services District mill rate in half (6.06 mills to 3.05 mills) Newly-authorized dispatcher position funded for end of year hire Additional part time funding provided in Office of Neighborhoods & Families for equity & inclusion Additional part time funding also provided in Senior Center and Senior Adult & Family Services (~$15k) Part time Health inspector funded to assist with after-hours inspections and enforcement of new cosmetology ordinances 2 frozen positions Civil Engineering, Director of Administrative Services); 31 total frozen

FY 2019/20 Recommended Budget Health Inspections Conducted By Type & Compliance Rate

FY 2019/20 Recommended Budget FY 2019/20 Financial Highlights Non-operating budget (excluding debt) increase of $1.4M, or 13.9% Shift of retiree pension costs: $1,017,378 Absent this shift, increase is $388,627, or 3.84% Additional $218,000 set aside for potential increase to minimum wage General fund capital budget increases by $160,000 Capital improvement plan for FY19 utilizes: $1,514,000 in General Fund $300,000 in one-time funding sources from unallocated balances and available surpluses in revolving accounts $225,000 in LoCIP funding Fund balance designation of $100,000 for equipment & vehicles

FY 2019/20 Recommended Budget FY 2019/20 Financial Highlights Board of Education increases 2.95% or $3.3 million in Manager’s recommended budget New State ECS funding formula has been proposed, reducing assistance to wealthy communities while increasing aid to non-wealthy communities Board of Education recommended budget was released before Governor’s proposal to allow half of the increase to the Alliance grant ($600K) to be used towards core educational costs Manager’s recommend accounts for repurposing as Alliance expense of another $400,000 for a total General Fund education adjustment of -$1,000,000 Governor proposed State-mandated Town share of teacher retirement costs ($315,607) is reflected in other education-related costs, apart from Board of Education budget

FY 2019/20 Recommended Budget

FY 2019/20 Recommended Budget General Fund Summary Proposed budget requires mill rate increase of 2.26% Four year average: 1.38% mill rate increase Utilizes $2,500,000 use of fund balance to protect local property taxpayers from legislative uncertainty Grand List growth of about 0.7% Generates about $1M in new revenue at the current mill rate

FY 2019/20 Recommended Budget

FY 2019/20 Recommended Budget Tax Impact Resulting mill rate of 36.62 (currently 35.81) Examples of tax increases on homeowners:

FY 2019/20 Recommended Budget Fire Fund Expenditure increase of 2.9% Proposed mill rate of 5.18 Increase of 1.57% compared to current mill rate Additional three firefighters authorized in current year to reduce mandatory overtime triggered by contractual staffing minimum Overtime savings of $300,000 incorporated into budget request SAFER Grant covers 75% of cost of additional firefighters in FY20

FY 2019/20 Recommended Budget Call Volume by Type

FY 2019/20 Recommended Budget Cardiac Arrest- Percent of patients with return of spontaneous circulation

FY 2019/20 Recommended Budget Water Fund Total operating expenditure increase of 7.2% Includes 2-year phase-in of sewer use fees paid to Sewer Fund ($158k) Non-operating expenses decrease by -6.2% Decrease in debt service reflects short term note paydowns as accounting function based on GAAP Proposed rate increase of 0%

FY 2019/20 Recommended Budget Average Daily Turbidity: Raw Water, Filtered Water and State Limit

FY 2019/20 Recommended Budget Sewer Fund Total operating expenditure increase of 3.3% Increases in utilities & treatment chemicals Non-operating decreases by $171,774 Method of budgeting debt service changes, same as Water Fund Proposed rate increase of 2.0%

FY 2019/20 Recommended Budget % Removal of cBOD, TSS, Nitrogen, & Phosphorus TSS= Total Suspended Solids, cBOD=Carbonaceous Biochemical Oxygen Demand

FY 2019/20 Recommended Budget Sanitation Fund Total expenditure increase of 5.1% Additional costs associated with odor control & new landfill gas collection system Tip fee revenues expected to remain flat; concerted effort to manage volume will reduce historic revenue surpluses

FY 2019/20 Recommended Budget Tonnage of Refuse by Type & Fiscal Year

FY 2019/20 Recommended Budget Summary Total General Fund budget $192,578,917 Expense increase of 2.84% Use of reserves $2,500,000 Results in mill rate increase of 2.26% Increases in Sewer Funds reflect continuing phase-in of debt service costs associated with plant rebuild; no increase recommended for water rates Fire Fund: 1.57% tax increase

FY 2019/20 Recommended Budget Thank you. Annual Operations & Performance Measure Reports can be found on the Town website under General Manager: http://generalmanager1.townofmanchester.org/index.cfm/annual-reports/