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

2. 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

3. FY 2019/20 Recommended Budget

4. 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

5. 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

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

7. 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

8. 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

9. FY 2019/20 Recommended Budget

10. 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

11. FY 2019/20 Recommended Budget

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

13. 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

14. FY 2019/20 Recommended Budget
Call Volume by Type

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

16. 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%

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

18. 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%

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

20. 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

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

22. 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

23. FY 2019/20 Recommended Budget
Thank you.
Annual Operations & Performance Measure Reports can be found on the Town website under General Manager: