City Hall: Next city, school budgets could go up more than 5%

Jan. 13—PREPARE TO TIGHTEN your belt a little more.

City and school budgets for the next fiscal year could increase by more than 5%.

Sharon Wickens, the city's finance director, on Thursday notified aldermen of the official tax cap number, which is based on the three-year average change in the Consumer Price Index. Also on Thursday, the U.S. Bureau of Labor Statistics released its CPI statistics for 2023.

This year's tax cap allowed for a 4.96% increase, but the actual tax rate came in at 3.4%.

Manchester's final Department of Revenue Administration tax rate for fiscal year 2024 was set in December at $18.86 per $1,000, up 62 cents — or 3.4% — from the previous year's $18.24 per $1,000, according to Wickens.

Manchester operates under a cap on property taxes established by a voter-approved amendment to the city charter. Generally referred to as a tax cap, the charter provision limits the total amount of money raised from property taxes, rather than the tax rate itself.

The cap limits the city's tax revenue to the average increase in the federal consumer price index, or CPI, during the three previous calendar years, plus the value of new construction.

According to the Bureau of Labor Statistics, the CPI for All Urban Consumers (CPI-U) over the past 12 months comes in at 3.4%.

Combined with the 2021 CPI-U figure of 7% and the 2021 figure of 6.5%, the three-year average used in preparation for the FY 2025 budget works out to 5.63%.

Under the city charter, the mayor must propose a city budget within the tax cap limitations. The charter gives aldermen the ability to override the cap.

In his inaugural speech earlier this month, Mayor Jay Ruais said he has been having budget discussions with department heads over the past two months.

Next fiscal year, Ruais said, the city faces mandatory increases of approximately $5 million for contracted Cost of Living Adjustments for employees.

"We have a $1.7 million hole we have to fill created by the surplus used in the budget and when setting the tax rate, and last year, the Board of Mayor and Alderman had to add $2 million to cover health care expenses," Ruais said. "Those health care costs continue to increase. The goal of our administration is not to simply come under the tax cap, but to take great care with how our dollars are raised, and spent."

Ruais has already halted all non-emergency hires by the city and has proposed a spending freeze on all non-essential spending.

"We have to prioritize our spending on that which is necessary, and keep more of your hard earned dollars in your pocket," Ruais said.

Info on school projects

The Manchester School District has scheduled a series of informational meetings over the next two months for seven schools directly impacted by upcoming planned facilities projects — Wilson, Beech Street and McDonough elementary schools, along with all four middle schools.

Last year, school officials received final approval from city aldermen to move ahead with "priority one" projects in the long-term facilities plan.

Priority one work includes closing Henry Wilson Elementary School, building a new elementary school near the current Beech Street School, shifting Hillside and McLaughlin Middle Schools to a grade 5-8 model, and making additions and renovations at all four middle schools to accommodate fifth-grade students and the "team" middle school model.

"With this work receiving final approval late last month, we are excited to move into the planning process," Superintendent Jennifer Gillis said in a statement. "I encourage our families and interested community members to take part. These meetings will provide a school-specific opportunity to learn more about the work, ask questions and share concerns."

The full schedule of meetings:

—Henry Wilson Elementary School (555 Cedar St.) — Wednesday, Jan. 24, at 5 p.m.

—Beech Street Elementary School (333 Beech St.) — Monday, Jan. 29, at 5 p.m.

—McDonough Elementary School (550 Lowell St.) — Wednesday, Jan. 31, at 5 p.m.

—Hillside Middle School (112 Reservoir Ave.) — Thursday, Feb. 1, at 6 p.m.

—Middle School at Parkside (75 Parkside Ave.) — Monday, Feb. 5, at 5 p.m.

—Southside Middle School (300 South Jewett St.) — Tuesday, Feb. 6, at 5 p.m.

—McLaughlin Middle School (201 Jack Lovering Dr.) — Thursday, Feb. 8, at 5 p.m.

In addition to these public meetings, each school will host a meeting for staff on the topic.

More information on the district's long-term facilities planning work is available at mansd.org/page/facilities-planning.

Tour of Millyard

The Manchester Conservation Commission has scheduled the fourth in its series of Outreach Tours on Saturday Jan. 20, at 10:30 a.m. to educate residents about how the "Mighty Merrimack" helped build the Queen City's industrial roots.

Manchester's Amoskeag Manufacturing Company was once the largest textile producer in the world, and much of the infrastructure that supported this industry is still part of the city's fabric.

This tour, which is free and open to the public, will explore how the growth of Manchester's textile industry was a direct result of the natural resources provided by the Merrimack River Watershed.

The tour will meet at the Millyard Museum, 200 Bedford St. in Manchester (entrance on the Commercial Street side). Tour participants will have a brief chance to explore the museum before a presentation by local historians and then head out on a tour of the revitalized Waumbec Mills, built in 1897.

The event will end at noon. Participants are encouraged to wear sturdy footwear and have clothing appropriate for the outdoors. Stair climbing may be required to access some portions of the tour.

The tour may be canceled for inclement weather.

Register online at:

manchesternh.recdesk.com/Community/Program/Detail?programId=341

Christmas tree pickup

Christmas Tree curbside collection is happening this week in Manchester, the only week the city will be picking up trees.

Collection is the same day as regular trash/recycling pickup. All ornamentation, including tinsel, must be removed. No artificial trees will be accepted.

The Manchester Drop-Off Facility will also accept discarded real trees now through March at no cost. Facility permits are required.

Paul Feely is the City Hall reporter for the New Hampshire Union Leader and Sunday News. Reach him at pfeely@unionleader.com.