Special Board of Aldermen Public Hearing Page 2
involved for years in terms of responding to medical calls and saving people’s lives through the
administration of Narcan. In addition to that now since November 17, 2016, they’ve taken on the role
of the safe stations role where they accept anyone who wants help 24 hours a day, 7 days a week, at
any of our fire stations. They’re providing a critical service to the community and therefore the fire
department and the police department our public service agencies are important and one priority of
the budget or a central priority was to make sure that they are able to continue to provide the same
level of service that they always have.
In the schools, the priority was to maintain but also to improve by adding full day kindergarten. This is
something that the Governor has promoted. Something that all of the studies show that results for
those who have full day kindergarten and lower dropout rates, higher grades, and more successful
life. Superintendent Brown did a very good job of reallocating resources so that this important
objective of full day kindergarten at all 12 elementary schools could be accomplished without a huge
increase in the budget. The schools are up 1.9 percent which is less than the public safety agencies
but more than some of the city departments. So those were | think the main priorities of the budget.
CFO Griffin is going to address the next three slides which give more of the financial detail regarding
the budget.
CFO Griffin
Thank you Mayor. The first slide as you can see highlights a few of the cost rivals that the city is
facing in fiscal 2018 namely increase of hydrant rentals, the Pennichuck Water rate increase, capital
equipment reserve fund that’s commonly known as CERF. That increase $1.2 million. Pension costs
duly noted over the last several years increased $2.23 million. Healthcare costs are increasing in a
similar fashion to the rest of the country - $3.64 million. We did have some relief towards the tax rate
which is a decrease in the debt service of $919,000.
With regard to a typical slide that we provide a proposed operating budget for the general fund is
$258.5 million. Spending cap percentage is calculated 1.4 percent. The dollar amount under the
spending amount at this time based on the calculation is $1.9 million. Increase over the fiscal 2017
budget is 4 percent. As the Mayor alluded to during his remarks to the Board of Aldermen, the
projected tax rate should be approximately 3.2 percent. Worst case, we hope to do better than that.
On the revenue side of the ledger, we continue to budget conservatively that provides us some good
revenues above budget. We have been fortunate to have an increase in motor vehicle registrations
over the last several years and that continues although modestly. We do have a low interest rate
environment which constrains our investments to some degree but also allows us to borrow quite
effectively. As we’ve seen over the last several years, there’s always a potential that the State cuts
the revenue to the city.
Taking a look at fiscal ’19 challenges, so we don’t look at this particular budget in a vacuum,
spending cap is tracking slowly upward. It’s a three year trailing average over the last three years.
Assuming a 1.6 percent spending cap percentage, the new allowable spend would be approximately
$4 million. Again potential reductions in State related revenue. As noted on the previous page,
anticipated increases and other employee related costs such as pension and benefits. With that Mr.
Mayor, that concludes my remarks.
Mayor Donchess
Thank you very much. That is our presentation Mr. Chair. Thank you for the opportunity.
