FY 2019/20 Recommended Budget General Government & Fixed/Miscellaneous Town of Manchester, Connecticut March 7, 2019

FY 2019/20 General Government Budget Shift of Town employee retiree pension costs to Fixed/Misc. Defined benefit pension contributions based on actuarial valuation of pension funds, current & future needs net of employee contributions and interest earnings Roughly 80% of cost is associated with retired employees Portion of DB pension costs associated with retired employees will now be shown in Fixed Miscellaneous, similar to retiree health benefits, instead of in the department operating budgets Contributions for active employees will remain in department budgets Police retiree pension costs are budgeted in Police Administration

FY 2019/20 General Government Budget

FY 2019/20 General Government Budget Teacher Pension Governor’s proposal phases in Town cost share of teacher pension costs 25% of current pension cost for towns at or below state median for average teacher salary (i.e. Manchester) Budgeted in “Other Education Related” section of General Fund Phased in over 3 years FY20: $315,607 FY21: $651,758 FY22: $987,909 Tax impact of about 0.08 mills per yr (0.24 mills total)

FY 2019/20 General Government Budget FY 2019/20 General Government Summary (Includes Board of Directors, General Manager, Budget, HR, Customer Service, Finance, Planning, Town Clerk, Registrars, Town Attorney & Probate Court) Overall expenditure increase of $214,324 or 3.5% for General Government departments within General Fund Information Systems fund increases by $91,712 or 4.7% Refer to pages 41-100 of the budget book for details

FY 2019/20 General Government Budget Board of Directors budget increases $46,100 (14.0%) $35,000 equity & inclusion advising $5,000 Manchester bicentennial seed money General Manager increases $65,244 (14.0%) Full year funding for Deputy General Manager position which was only funded for 8 months in FY 2019/20 Offsetting reduction in Human Resources department Refer to pages 42-45 of the budget book for details

FY 2019/20 General Government Budget Central Administrative Offices: Budget & Research -$1,750 (-0.7%) Human Resources -$37,229 (-6.3%) Freezes Dir. Of Admin. Services; adds proposed communications & community engagement position Customer Service +$3,818 (2.5%) Town Attorney +$5,959 (1.5%) Refer to pages 46-57 & 91-92 of the budget book for details

FY 2019/20 General Government Budget Finance Departments: 1.55% increase Finance Administration +$6,481 (3.3%) Accounting +$7,554 (1.4%) Assessment & Collection -$23,273 (-2.2%) +$17,517 or 1.7% net of retiree DB pension shift General Services +$45,695 (8.1%) $52,200 budgeted for central printing & toner costs General fund office supply budgets reduced ~$62k total $11,000 decrease as a result of switching to IP telephony Refer to pages 58-79 of the budget book for details

FY 2019/20 General Government Budget Planning & Economic Devel. +$103,241 (14.9%) Shift Downtown Manager from SSD to General Fund Reduces SSD mill rate from 6.06 to 3.05 mills Town Clerk +$10,509 (2.3%) Registrar -$20,824 (-7.3%) Decrease reflects cost of 2019 local election being substantially less than cost of 2018 Gubernatorial/midterm election Refer to pages 80-90 of the budget book for details

FY 2019/20 Fixed/Miscellaneous Budget Total General Fund (non-BOE) health insurance cost in FY20 for active and retired employees: $9,751,848 (+5.7%) Defined benefit cost associated with non-uniformed retired Town employees in General Fund shifted to Fixed/Misc: $1,017,378 Police retiree pension budgeted in Police admin. Total General Fund pension increase $260,617 (6.28%) Miscellaneous +$235,977 $218k included as contingency for minimum wage increase; would increase part time wages by $1/hr Refer to pages 211-214 of the budget book for details

FY 2019/20 Fixed/Miscellaneous Budget Debt Service +$758,349 (6.35%) FY20 debt service budget: $12,697,594 2019 GO Bond (schools & public works) +$569,341 Refer to page 214 of the budget book for details

FY 2019/20 Fixed/Miscellaneous Budget Interfund Transfers Capital Reserve +$160,000 (11.8%) $1,514,000 in projects funded through General Fund Net of $300k use of reserves, $225k LoCIP Information Systems +$22,906 (2.0%) MSIP -$100,538 (-6.2%) Paramedic Program (General Fund)+$46,653 (2.1%) Refer to page 213 of the budget book for details

FY 2019/20 Information Systems Budget Information Systems increase of $91,712 (4.7%) $10,558 in software service contract increases $15k provided for community engagement software $8,250 increase in professional development & cybersecurity training Refer to pages 94-99 of the budget book for details

FY 2019/20 General Government & Fixed/Miscellaneous Budget SUMMARY General Government + $214,324 (3.5%) Debt Service + $758,349 (6.3%) Shift of Retiree Pension $1,017,378 Other Fixed/Miscellaneous +$388,627 (3.8%) Information Systems + $91,712 (4.7%)

Thank you.