MANCHESTER, NH – Mayor Jay Ruais released his proposed Fiscal Year 2027 city and school district budgets on Thursday night, marking the next step in Manchester’s annual municipal budget process.
The mayor used the analogy of a Manchester family sitting down at their kitchen table discussing what they can and can’t afford to reflect the overarching values of his budget: seeking affordability and efficiencies while also protecting important city services.
“In a time of continued economic pressure our families, residents and businesses deserve a city government that lives within its means,” he said in a statement. “At the end of every line item in our budget is an individual or family thinking about filling up their car, putting money away for their future, or paying their mortgage.”
The mayor indicated that savings are needed to remain under the city’s tax cap, which would allow a 3 percent increase in revenues appropriated and expenditures for the last fiscal year, an amount equivalent to $8,094,468. With approximately $6 million of unavoidable increases due to things like contractual obligations, rising energy prices and debt repayment requirements as well as a loss of $1.5 million in expected revenue, Ruais highlighted a series of cost reductions within this fiscal year’s proposed budget.
Ruais’ proposed total FY’27 city budget is $200,145,294; a figure comparable to the amount he sought last year. All city department budgets in the proposals have reductions except for the Police Department, which seeks to fill approximately two dozen vacancies in its roster of sworn officers. The Police Department will also take in the city’s Parking Division, which is expected to save $150,000.
A total of $1 million is expected to eventually be saved through the creation of a Purchasing Department, a recommendation made by a new independent city auditor, the first employed by the city since 2018. Just under another $1 million is expected to be saved by removing money kept in reserve for salaries of positions intended to be filled, but currently vacant.
Some of the other cuts include the end of the city’s membership in the New Hampshire Municipal Association and Southern New Hampshire Regional Planning Commission ($111,000), a reduction in the Department of Public Works salt budget ($300,000) that would have to be made up with reserve fund contribution if weather conditions create a shortfall.
The mayor also identified several expenditures intended to be kept or expanded as well for the sake of maintaining city services for residents. A total of $160,000 in community improvement plan funding has been allocated to permanently retain several firefighters hired through SAFER Grant funding, with those firefighters and other recently hired city employees along with any future city employees expected to receive competitive salaries following the city’s recent compensation study. Additionally, $1,4 million in communications upgrades are slated for the Police and Fire Departments and $200,000 is earmarked for new firefighter protective gear.
Road paving funding comes in at $7 million, more than the $6 million last year, but less than the amount recommended by Department of Public Works officials in February.
A total of $300,000 is expected to be put toward the creation of a new Hunt Memorial Pool, $60,000 for additional lighting on archways found in the Gaslight District, Elm Street and Kelley Street and commitments toward a new specialized shelter, engagement center and emergency winter warming center on Elm Street as well as a joint venture that will create a new homeless shelter specifically for homeless families.
“We have to strike a balance. We must live within our means and live up to our responsibilities,” said Ruais in a statement.
The mayor’s proposed Manchester School District budget came in at $234,981,749. This figure is lower than the three budgets proposed by the Manchester Board of School Committee, the least expensive of which does not require a tax cap override from the Manchester Board of Mayor and Aldermen but would likely result in significant layoffs.
Members of the Board of School Committee have criticized Ruais as finalized school district budgets have come in below recommended amounts, an amount of approximately $17 million combined over the last two years. However, Ruais has noted that last fiscal year’s amount was approximately $40 million higher than the last school district budget passed prior to his first election.
In response to the address, Ward 1 Alderman Bryce Kaw-uh was not impressed.
“When I took office, I thought Mayor Ruais wanted to make Manchester the best midsized city in the country — not the worst. His budget would devastate our community. This first draft budget fails to fix our roads, repair our sidewalks, and support our students. The Aldermen have a lot of work ahead of us,” he said.
However, Manchester Association of Police Supervisors President Robert Megowen appreciated Ruais’ comments regarding public safety as his union prepares for collective bargaining renegotiations with the city.
“Manchester officers are working in one of the busiest policing environments in New Hampshire and staffing shortages continue to place a significant burden on the department,” said Megowen. “As our current contract approaches expiration, it has become clear that Manchester must remain competitive with surrounding agencies to recruit and retain the officers our community relies on. We remain committed to working collaboratively with the Mayor and the Board of Aldermen to reach a fair agreement, competitive with local communities, that supports both our officers and the long-term public safety needs of the city.”
The recommended budgets now head to the April 14 Board of Mayor and Aldermen meeting.