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

2. 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

3. FY 2019/20 General Government Budget

4. 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)

5. 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 of the budget book for details

6. 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 of the budget book for details

7. 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 & of the budget book for details

8. 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 of the budget book for details

9. 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 local election being substantially less than cost of 2018 Gubernatorial/midterm election
Refer to pages of the budget book for details

10. 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 of the budget book for details

11. 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

12. 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

13. 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 of the budget book for details

14. 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%)

15. Thank you.