Manchester 2023-24 Budget Proposal: At A Glance

MANCHESTER, CT — Here is the Manchester town manager's proposed budget for the 2023-24 fiscal year at a glance:

• Bottom Line: $233,191,608
• Increase: $12,142,610 or 5.49 percent over the current fiscal year's general fund and fire fund budgeted expenditures
• Education: $125,947,062, an increase of $5.7 million or 4.81 percent
• Municipal Positions: The budget funds some additional positions, including a patrol officer, facilities maintainer, and reorganizations of multiple part time staff into single full-time in the communications and animal control divisions
• Manchester Fire/8th District Merger: The merger adds the full cost of the fire operation to the General Fund and expands the fire operation to cover the entire town, resulting in a fire budget of $21,643,533 added to the General Fund, plus $2,746,457 in other fire-related costs in finance, building maintenance, retiree benefits, and insurance. Following the merger, residents in the 8th District will begin to receive charges for sewer service, which had been incorporated into the 8th Utilities District property taxes.

• Other Factors Impacting the Increase:

1. Increased costs for health care, debt service and our required contributions to the pension fund
2. With several collective bargaining agreements expiring in this era of inflation, wages and benefits will likely increase more than the usual 2 percent general wage increase
3. Inflation and supply chain constraints will continue to increase costs of materials, supplies, and contracted services
4. The state grant to fund the loss associated with the motor vehicle tax cap will end, reducing next year’s revenue by $3.3 million
5. State aid is remaining flat, which in a high inflationary environment, represents an actual cut in resources
6. With the announced takeover of Manchester Memorial by Yale-New Haven, the town is are expected to lose an additional $2-3 million as those properties move from taxable to exempt status

• Tax Impact: The budget as proposed would carry a tax rate of 38.25 mills, an increase from the current rate of 5.90 for general fire coverage residents and 4.85 percent for 8th District residents. The increase would follow four years of increases of less than 2 percent and 10 years of less than 3 percent with inflation is at its highest level in 40 years
• Impact on Property Taxes: A home with a market value of $180,000, assessed (70 percent) at $126,000 would carry at tax burden of $4,820, an increase of $286; A home with a market value of 225,000, assessed at $157,500, would carry a tax burden of $6,024, an increase of $335; A home with a market value of $325,000, assessed at $227,500, would carry a tax burden of $8,702, an increase of $485. Should the Board of Directors wish to limit the tax rate increase, staff is prepared top resent service reduction options for consideration. These include reducing public safety staffing, closing recreational facilities and/or libraries, and decreasing the maintenance of our parks, streets, and trails

See the full budget book here.

See the full budget review schedule here.