FY 2009/10 Recommended Budget Town of Manchester, Connecticut

1. FY 2009/10 Recommended BudgetTown of Manchester, Connecticut March 17, 2009

2. FY 2009/10 Recommended Budget • Board of Directors Priorities: • Promote Environmental Stewardship • Make the Community Safer • Focus on Education and Facility Renovations • Promote Positive Youth Development • Restore Neighborhood Pride • Limit Tax Increases • Foster Economic Development

3. FY 2009/10 Recommended Budget • FY 2009/10 Financial Highlights: • Town operations increase of 0.8% or $517K • Education increase of 1.0%, or $965K • Total Expenditure increase of 0.9% or $1.48 million • Non-tax revenues down by $1.5 million • Tax increase necessary: 2.5% • Growth plus settlement of revaluation appeals adds $405,000 • Resulting tax levy increase of 2.9% • GF mill rate of 26.94 vs. current 29.22 (-7.8%)

4. FY 2009/10 Recommended Budget

5. FY 2009/10 Recommended Budget

6. FY 2009/10 Recommended Budget • General Fund Expenditure Drivers: • $424K: Salary adjustments full-time staff (+2.2%) • $395K Health insurance active employees • $288K pension fund contribution

7. FY 2009/10 Recommended Budget • Measures to Limit Expenditures • 2007/08: • Health Insurance administration bid • Electricity supplier bid • 8.0 FTE frozen and unfunded positions (4.5 in GF) • 2008/09 • Pension investment assumptions • 11.5 FTE frozen and unfunded positions (7.75 in GF) • New medical services billing practices, to reduce required transfer to Fire Fund • Ongoing restructuring of employee benefits • As of 2007/08, all bargaining units and unaffiliated have had health insurance benefits restructured • As of 2007/08, transition from Defined Benefit to Defined Contribution is complete (does not apply to Fire or Police unions)

8. FY 2009/10 Recommended Budget • Measures to Limit Expenditures • 2009/10: • Total of 14.25 positions frozen and unfunded in General Fund – up from 7.75 in General Fund in 2008/09 • Frozen positions in Town Clerk and Assessor’s Office • Four Patrol Officer positions frozen • Alternative service delivery in Senior Center – 2 positions unfunded • Total 17.75 frozen and unfunded all funds • Reduction of $25,000 in non-core Police Dept. services • Closure of two pools in summer 2009 for reduction of $28,000 in Recreation operating costs plus avoided capital costs ($75K for Verplanck and $45K for Waddell) • Elimination of indoor swimming program for savings of $26,500

9. FY 2009/10 Recommended Budget • Measures to Limit Expenditures • 2009/10: • Reduce hours of Whiton Branch Library from 50/week to 16/week to save $60,000 • Contract for meal service at Senior Center for savings of $31,780 • Optimization of bus service at Senior Center to save $43,000 • Public Works – Pavement program reduced by $54,000 • Public Works – Streetlights budget reduced by $132,000 • Reductions in discretionary training and professional development - $35,000 • Reductions in part-time staffing of $67,000 beyond those resulting from service level reductions • Reduce size of town fleet by 10 or more vehicles

10. FY 2009/10 Recommended Budget • Measures to Limit Expenditures • 2009/10: • Where appropriate, shift costs to non-tax supported sources: • Mechanic charged to Sanitation • Use of existing reserves for portion of 09/10 capital budget • Leverage grant funds for library computers • Change health insurance administrator for retirees age 65 and over: approximate savings of $200,000 • Accrued vacancy savings of $125,000 • Voluntary salary freeze by department heads and some management staff saves $50,000+ ($45K in GF)

11. FY 2009/10 Recommended Budget New/Redirected Resources: • Resource Office for Neighborhoods and Families • Reassignment from Recreation Department • Funding for part-time administrative support position • Addition of $50,000 for Safety Net services • Redirect $30,000 from discretionary youth funding to new Youth Commission and Resource Office for Neighborhoods & Families

12. FY 2009/10 Recommended Budget • Debt Service: • Proposed budget for Debt Service decreases by $151,605 • Includes set-aside to level off debt service payments 2008/09, 2009/10, and 2010/11 • FY 2009/10 assumes bond issue on 2007 and/or 2008 authorization

13. FY 2009/10 Recommended Budget • Revenue Drivers • Grand List • Grand List growth of 0.1% adds $85,000 in new revenue • Settlement of appeals to 2006 revaluation adds $320,000 in revenue • Net decrease in all sources of State Aid of -$777K. • Non-tax local sources down by about $760K • Town Clerk fees (-$248,000), Building permits (-$151,095), Interest earnings (-473,600) all impacted by changing economic conditions

14. FY 2009/10 Recommended Budget • Mill Rate • Required tax rate increase of 2.5% • Growth plus settlements adds $405,000 • Resulting tax levy of $112.5 million: +2.9% • Resulting GF mill rate of 26.94 • Reduction of 2.28 mills, or -7.8%, vs. 2008/09 mill rate of 29.22

15. FY 2009/10 Recommended Budget Fire Fund • Expenditure increase of 4.4% • Reduce minimum staffing on night shift from 16 to 15 – saves $110,000 • Resulting mill rate of 3.55 • Fire Fund tax levy increase of 5%

16. FY 2009/10 Recommended Budget Water and Sewer • Combined expenditure increase of 2.6% • Water 3.3% • Sewer 1.8% • Rate increases: • Water 5% • Sewer 8%

17. FY 2009/10 Recommended Budget Sanitation Fund • Expenditures increase by 2.4% • New contract for curbside collection adds $220K • New hauler • Recycling collection • Change to tipper barrels • Every other week collection of recyclables