Mayor delivers budget address, highlights gains and challenges for 2017

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Mayor Gatsas delivers annual budget address.

MANCHESTER, NH – Mayor Ted Gatsas delivered his seventh budget address on Tuesday night at City Hall, starting off by calling out the state for “downshifting” expenses to municipalities, pointing out a funding increase in the proposed school budget, and wishing his mother, Perley, a happy birthday.

Gatsas said the city is trending in a “positive direction,” which includes a $20 million reserve, and a $10.5 “rainy day fund.” Gatsas also announced the establishment of a $400,000 “weather reserve account” to cover shortfalls in the general operating budget, capitalizing on this year’s mild weather and low expenditures.

“This evening, I am honored to stand before you and tell you that given the economic times that we have lived through, and the challenges we have faced, Manchester is thriving, and has succeeded in the face of adversity because of sound fiscal planning and management and our hometown pride,” Gatsas said.

“As you will see in the presentation before you this evening on the municipal side of the budget there is a funding cut, and on the school side there is a funding increase. While the appropriation is well within the tax cap, we must not ignore the fact that for years the State of New Hampshire has downshifted costs to the municipalities including the City of Manchester.”

The proposed $306,512,365 budget includes a 4 percent decrease in stabilization grants due to a change in state law relative to adequacy funding, said Gatsas. “It’s time for Concord to be consistent when it comes to costs and revenues that have a direct effect on municipalities and become our partner, rather than our adversary, when it comes to budgeting.”

Gatsas also pointed out that every dollar of revenue raised under the tax cap has been put toward education, which translates to a $3.1 million or a 3.48 percent increase.


 

Budget Highlights

Tax Cap:

  • 00% increase – amount allowed under tax cap set forth in City Charter;
  • 00% generates approximately $1,996,596 in additional revenue.

Manchester School District:

  • Total school spend is $162,673,307.   This is not inclusive of additional federal monies received by the Manchester School District;
  • The appropriation in the Mayor’s Tax Cap budget is the same appropriation presented in the Superintendents Tax Cap budget;
  • Every additional dollar of monies raised by the tax cap is allocated to the Manchester School District;
  • More dollars have gone to the Manchester School District than raised by the tax cap;
  • Expenditures at the Manchester School District have increased while expenditures in the city have decreased.
  • The effective percentage change in the tax rate, within the 1.00% tax cap, for the Manchester School District is 3.48%.
  • In FY2017, and in each year moving forward, the Manchester School District will see a 4% decrease in stabilization funding as set forth in state law.

Manchester’s Municipal Spending & Reserves:

  • Total city spend is: $143,839,058. This represents a decrease in municipal spending over FY2016;
  • This is the second year in a row municipal spending has decreased over the previous year;
  • All city departments FY2017 funding levels are inclusive of a 3% decrease in their operating budgets excluding payroll and contracts;
  • The effective percentage change in the tax rate, within the 1.00% tax cap, for the City of Manchester is negative 1.13%;
  • The city will close FY2016 with a general fund reserve of $20 million, an 8.5% increase over FY2015;
  • At the close of FY2016 the rainy day fund will have a projected balance of $10.5 million;
  • There is a projected $800,000 savings in healthcare. In FY2017 the health insurance line item is flat-funded due to projected savings;
  • There is an additional $70,000 in savings of the energy line-item of the budget based on continued realized savings from the conversion of our street lights to LED;
  • A Winter Weather Reserve Account is established and funded through FY2016 winter weather operations surplus of $400,000;
  • The Recreation Enterprise Fund is eliminated and folded into the general fund within Parks & Recreation.
  • Fully funds approve police complement of 237 officers;
  • Maintains complement and coverage ratios for Manchester Fire Department;
  • Fully funds the entire umbrella of the Public Works Department;
  • The Chief Negotiator position is permanently placed within the Human Resources Dept.
  • City severance is funded in accordance with the projected 40-50 anticipated retirements;
  • The Manchester Transit Authority subsidy is sully funded and will maintain all service routes;

Economic Development:

  • A $350,000 capital investment to fully fund an integrated, permitting, licensing and billing system called “Track-It.” This will automate the permitting process and licensing process and allow online connectivity with real-time updates;
  • Continues to fund the INTOWN Summer Concert Program at the increased level of $18,000 brought forward in FY2016.

Capital Budget (Road Reconstruction & Deferred Building Maintenance):

  • Continues to fund the proposed 5 year, $18 million investment in roads through the Annual Road Replacement Fund (A.R.R.F.). FY2017 A.R.R.F. funding is $3 million;
  • Continues $3 million for Motorized Equipment Replacement Program (M.E.R.). M.E.R. includes funding for new fire engines and police cruisers;
  • $1 million proposed for deferred maintenance projects
  • $550,0000 allocated for information technology upgrades
  • $1.2 million for replacement of police records management system;
  • $200,000 for city match for bridge repairs to South Elm Street bridge
  • $150,000 in a cash CIP allocation generated from public works surplus for the refurbishment of JFK Coliseum locker rooms.

Relative to the Community Improvement Program:

  • Community Improvement Proposal (C.I.P) continues to fund municipal infrastructure projects and over 20 local area non-profit agencies;
  • Continues city partnership with the Manchester Community Resource Program (MCRC);
  • Through CDBG entitlement funding continues non-profit support for the City Year Whole City, Whole Child program, Meals on Wheels program, Serenity Place wrap-around care initiative in the heroin and opioid epidemic and the Queen City Bike Collective that is working with inner-city youth on life skills;
  • Funds ADA improvements to our city sidewalks;
  • Fully funds Teen Night to align with the Manchester Health Department Neighborhood Improvement Strategy.

You can read Mayor Gatsas’ full remarks below as well as the FY2017 Budget Supplement.


 

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About this Author

Carol Robidoux

PublisherManchester Ink Link

Longtime NH journalist and publisher of ManchesterInkLink.com. Loves R&B, German beer, and the Queen City!