MANCHESTER, N.H. – On Tuesday, Manchester Mayor Joyce Craig presented an address on her proposed Fiscal Year 2023 City Budget, which now goes to the Board of Mayor and Aldermen for deliberation.
Required by the Manchester City Charter to present a budget that comes within the city’s revenue and expenditure cap rates, which this fiscal year is set at 3.57%, Craig presented a proposed city budget of $166,151,663 and a proposed Manchester School District budget of $189,097,818.
The school district budget also approximately $50 million in non-appropriation revenue sources, most notably $27.2 million in Elementary and Secondary Emergency Relief (ESSER) funding going toward addressing COVID-related issues in the school district, including $11.5 million for HVAC improvements.
An additional $4.4 million in Capital Improvement Project (CIP) Funding is also included in the school district budget going toward the purchase of five school buses, playground replacements at Bakersville and Webster Elementary and deferred maintenance projects among other investments.
On the city side, Craig’s proposed budget aims to bring the Manchester Police Department up to a full complement of 267 officers, provides partial funding for a fifth week of vacation for the city’s firefighters, funds popular recreational initiatives like the annual Fun in the Sun program and coverage of expected increases in contracts with outside vendors in areas such as recycling and yard waste collection, software updates and the Manchester Animal Shelter.
Other investments mentioned include various bond measures to repair and improve parks and recreational facilities around the city, $2.3 million to repave and rehabilitate approximately 32.9 miles of streets and a new program that will pay for 50 percent of a tree in front of a resident’s house if the resident pays for the other half, comparable to an existing program with sidewalks.
However, limitations were also noted, most notably the lack of surplus in the budget stemming from the COVID-19 pandemic’s impact to city revenues in Fiscal Year 2022 ranging from lost income from motor vehicle registration and parking meters fees to lower interest rates and the impact of remote working on downtown businesses.
One-third of each year’s budget surplus goes toward severance payments, which is expected to cost approximately $1.5 million in FY ’23 with current projected retirements. Currently, there is only $400,000 in the city’s severance fund.
The budget Is also unable to fund agreed upon cost-of-living adjustments past June 30, 2022, for 12 collective bargaining agreements and other items that may impact retaining current city employees and attracting new ones.
Craig also referenced the city’s aggressive pursuit of federal grant funding ranging from the RAISE USDOT Grant for development of South Elm Street and the Millyard, $3.6 million in U.S. HUD Community Development Block Grants (CDBG) and HOME Grants, and $43.2 million in American Rescue Plan funding.
However, Craig also noted limitations here as well, citing that 63 percent of the Manchester Health Department’s budget comes from outside grants that may not be available in the future, urging the Aldermen to allocate funding to a reserve fund for the department.
“This budget is the first step in the process, I look forward to hearing from our community and working with the Aldermen to put forward a budget that best meets the needs of our community,” she said. “Together, we must continue to work hard to make our city stronger. I look forward to helping create positive change for Manchester.”
A full copy of the proposed budget can be found here.
The Board of Mayor and Aldermen will hold a public hearing on the city budget on April 19.
FY23 Budget Highlights General Overview provided by Mayor Craig’s office:
- This budget adheres to the revenue and expenditure caps and a includes 3.57% property tax increase, resulting in tax rate change of $0.63, from $17.68 to $18.31
- The increase in property tax revenues equates to $8.2 million, with approximately $4.3 million allocated to the City and $3.9 million is allocated to MANSD
- Allocates $169 million to the city
- Allocates $189 million to the school district, the Board of School Committee’s FY22 charter-complaint budget request
Schools:
- Covers current programming and staff, as well as costs associated with collective bargaining agreements, retirement, and a 6.5% increase in health insurance
- Supports MANSD’s strategic plan to grow our learners, grow our educators and grow our systems
- Continues educator professional development in support of reading and math curriculum, as well as curriculum development at the high school level, giving staff the tools they need to meet the academic, behavioral and social-emotional needs of each student
- Allocates funds for additional special education staff needed to meet increased demand for specialized services and includes additional funds for the increased costs of specialized transportation for special education and unhoused students
- Transportation saw a 137% increase in Mckinney Vento transportation costs and a 19% increase in special education specialized transport ($3.3 million)
- Outlines potential uses of one-time grant funding. This includes teaching personnel, materials and resource investments and ventilation upgrades
- Bonds $4.4 million in bonding for Capital Improvement Projects. This includes the purchase of five school buses, deferred maintenance projects, school parking lot rehabilitation, school playground replacements at Bakersville and Webster Elementary and Cullerot Park access to green space for Northwest students
City:
- Allocates $1.5 million to health insurance due to a significant increase in claims (increase in surgeries, inpatient COVID stays and members reaching the high claim category)
- Allocates $1.4 million to merits, longevity and associated benefits. Meaning, 65% of all city employees will receive at least a 3% increase in pay
- Unable to fund severance or cost-of-living adjustments for the 12 union contracts that expire on June 30, 2022
- Allocates $2 million in American Rescue Plan funds to supplement lost revenues
- Includes $12.9 million for bonded projects including:
- Green streets tree canopy program
- Covers 50% of a resident’s cost for a new tree adjacent to the street – the first time a partnership program to increase green streets has been introduced in the city
- Replacement of the West Side Arena refrigeration system
- Renovations to Derryfield Park, replacing Livingston Park track and replacing playgrounds at Wolfe Park and Sheridan Emmett Park
- Utilizes public-private partnerships, leveraging private funds to upgrade:
- Livingston Park North Little League and North Soccer League fields
- Precourt Park fields for South Little League and South Soccer
- Sheehan Basquil Park for the Pony League fields
- Stevens Park for Cal Ripkin baseball
- $1.6 million for sidewalk repair
- This budget also bonds $2.3 million for roads, in addition to allocating $928,358 from the Degradation fund balance, $400,000 from the Municipal Transportation Balance and $507,000 in annual street reconstruction for a total of $4.1 million to improve 32.9 miles of streets
- Allocates the $3.6 million in federal funds via Community Development Block Grants (CDBG), HOME funds and Emergency Solutions funds as follows:
- Provides $1.04 million in federal funds for homelessness prevention and affordable housing
- Invests 618,750 in federal funds for youth-related programs such as Boys and Girls Club, City Year NH, Granite YMCA, Amoskeag Health, My Turn, Girls at Work and Queen City Bike Collective
- Leverages federal grants to build a stronger Manchester
- $25 million RAISE Grant by the USDOT to revitalize the South Millyard and South Elm Street area
- $43.2 million in American Rescue Plan funding