MANCHESTER, N.H. – On Tuesday, the Manchester Board of Mayor and Aldermen approved the City of Manchester’s Fiscal Year 2026 budget at a grand total amount of $201,366,017 with the general fund coming in at $196,511,261.
Deliberations on the budget were less contentious than last year’s process, where the mayor initially had to veto his own budget before the board passed a general fund budget coming in at $185,401,207. The proposed Aldermanic grand total amount budget, developed by Ward 10 Alderman Bill Barry, Ward 3 Alderman Pat Long and Ward 9 Alderman Jim Burkush, was approximately $1.5 million higher than the mayor’s proposed grand total budget, as amendments (see below) included additional funding to the city’s severance account in addition to money allocated into the severance account from surplus revenue rolling over from Fiscal Year 2025.
Normally, surplus is divided by thirds equally into the severance account, the city’s emergency reserve or “Rainy Day” fund and funding used to lower the city’s tax rate. This year, that third would have amounted $689,666 for each account. However, the board suspended its rules to allow the third for rainy day funds to be transferred into the third allocated for tax relief. Additional funds were allocated into the upcoming fiscal year’s Community Improvement Plan (CIP) fund after concerns of lower expected Community Development Block Grants and HOUSE Grants from the U.S. Department of Housing and Urban Development. Additional funding for a new Opticom traffic light controller system, designed to facilitate traffic light signal switching when emergency vehicles are driving by, was also approved through an additional motion from Burkush, utilizing a total of A total of $1.6 million from the city’s special reserve account.
After the budget was approved, Ward 1 Alderman Chris Morgan requested to make a motion to reconsider the budget and decrease health insurance funding for city employees by $400,000 with that money going back to taxpayers. Morgan cited the over $3 million in the city’s health insurance reserve account as the reasoning behind his request.
City of Manchester Chief Financial Officer Sharon Wickens called the proposal “a roll of the dice,” but noted that she would move forward at the board’s decision.
Several members of the board cited premium increases of nearly 10 percent recently for City of Nashua employees as a point for concern, with others asking why this proposal did not come before the board prior to the initial passage of the budget. Ward 7 Alderman Ross Terrio said that he would prefer $200,000 but was fine with Morgan’s amount.
The reconsideration vote failed, 10-4. Morgan was joined by Long, Aldermanic chair Joseph Kelly Levasseur and Ward 11 Alderman Norm Vincent.
Manchester Mayor Jay Ruais was pleased that the budget took into account principles recommended by the city’s recent compensation study, referring to it as “reality-based.”
“Budgets are about making tough choices, reaching compromise and finding balance. Every budget presents unique challenges, but covering essential services in a cost-effective manner is always the goal. That is exactly what our new budget for FY’ 26 delivers,” said Ruais.
Other FY’ 2026 appropriations that were approved on Tuesday night included…
- $4,976,749 to the Parking Fund from parking revenues
- $28,168,194 to the Environmental Protection Division of Department of Public Works coming from sewer user rental charges
- $42,884,197 to the Manchester Airport Authority from special airport revenue funds
- $1,999,838 to the Manchester Transit Authority
- $6,300,000 to the Manchester School Food and Nutrition Services program from the school food and nutrition services revenues
- Any incremental meals and rooms tax revenue to fulfill obligations in the Civic Center Fund
- $400,000 to the Central Business Service District from Central Business Service District funds.