Manchester's Budget Season Begins With $203 Million Proposal

MANCHESTER, CT — Manchester General Manager Steve Stephanou Tuesday unveiled a proposed $203.4 million budget for the 2022023 fiscal year.

The bottom line of $203,492,007 represents an increase of $5,486,796, or 2.77 percent over the current year's spending plan.

"The past two years have been enormously challenging for the Town and entire Manchester community. In the face of this adversity, and under the leadership of the Board of Directors, the town of Manchester has responded exceptionally well," Stephanou said. "The pandemic is not yet over, but thanks to the efforts of Town staff and the incredible resiliency of Manchester residents, our community is currently positioned to emerge from it stronger, more resilient, and more equitable than before the pandemic, and this proposed budget represents that vision."

He added, "The proposed budget invests in education, public safety, social equity, technology, and sustainability, without compromising the quality-of-service residents and businesses expect from their local government,” said Stephanou “In addition, this budget preserves Manchester’s AAA Credit Rating and prioritizes the long-term fiscal health of the Town."

Under the recommended budget, municipal services spending will increase 2.4 percent over the FY22 budget.

The Board of Education budget shows an increases of 2.90 percent, with a total General Fund recommended increase of 2.7 percent, and a proposed tax rate of 32.18 mills, a 12 percent reduction from last year.

The municipal spending increases reflect "contractually obligated" wage increases and pension costs, fully
funding capital projects, and increased non-personnel costs affected by inflation, Stephanou said.

The Fire Fund, which provides resources for Manchester Fire-Rescue-EMS, includes a proposed 4.85 percent expenditure increase and proposed tax rate of 4.73 mills, a 12.5 percent reduction from last year. The Fire Fund increases primarily reflect rising pension costs, the first year of payments toward a fire truck
replacement, plus overtime and termination benefits, and the partial funding of an additional assistant chief position, Stephanou said.

Water and Sewer rates are recommended to increase by 5 percent "to keep pace with the water and sewer utilities infrastructure, environmental needs, and declining billed consumption," Stephanou said.

The budget includes a recommended tax rate of 32.18 mills, marking the 12 percent reduction from the FY22 levy of 36.52 mills.

"This is a result of a sizable increase in the grand list," Stephanou said. Overall, the Real Estate Grand List is up 18.43 percent, with residential values (single-family, residential condominiums, two-family, three-family, and four-family properties) up 26 percent.

Because of the 2021 revaluation. Industrial property values are up 13.46 percent, while apartment values are up 10.99 percent. Other commercial properties values, primarily retail, are down 1.56 percent.

"The revaluation impact on residents and the lowered mill rate will vary depending on the unique circumstances of each property," Stephanou said. "For some properties that have experienced significant value increases, the relative burden shift from commercial to residential will result in
a net tax increase, although the increase will be less than the increase in property value because of the mill rate reduction.

"Depending on the increase in the assessed value of their property, net taxes will go up only a small percentage for some residents, while those with relatively small increases in property value will see a tax decrease. As a result of the revaluation, many businesses with commercial property in Manchester will see a tax decrease."

Manchester Mayor Jay Moran said it's about the taxpayers.

"Over the course of the next weeks, the Board of Directors will roll up our sleeves and dive into this budget proposal, with a focus on making sure that adopting a budget that minimizes any cost increase for residents, while ensuring the Town maintains the service levels that make Manchester such a great place to work, play, live, and go to school."

The full proposed budget can be viewed online at: http://budget1.townofmancheste...