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City finance director reports projected $1.218 million FY2025 general fund surplus; police overtime cited as driver of expenditure deficit
Summary
City finance staff reported a projected FY2025 general fund operating surplus of $1,218,000 driven by stronger revenues (interest income, motor vehicle registrations, permitting) offset by an expenditure deficit largely from police overtime tied to 23 vacancies.
City finance staff presented an updated FY2025 general fund forecast at the Manchester Board Mayor & Aldermen meeting on Feb. 18, projecting a $1,218,000 operating surplus as of Feb. 18.
The forecast breaks the surplus into a $1,589,000 revenue surplus and a $371,000 expenditure deficit. Finance staff attributed the expenditure deficit primarily to police overtime and noted the department currently had 23 officer vacancies, which increased overtime hours. The presenter said the expectation is that the expenditure deficit will improve before fiscal year end.
Revenue strength was described as coming mainly from interest income, motor vehicle registrations and increased permitting. The presenter said the school district provided a permit fee schedule for a priority project that projects $867,000 in permits to be issued before fiscal year end; staff said they are monitoring the permitting schedule and will adjust projections if permit receipts do not materialize.
Other figures cited: 21 retirements through Feb. 18 (compared with 25 the prior year); severance paid through Feb. 18 of $1,078,543 (compared with $941,814 a year earlier); and an anticipated summons reserve account balance of $849,810 once entries are posted. The forecast also includes $200,000 drawn from the contingency account.
The finance presentation prompted clarifying questions from board members about the permit revenue and motor vehicle registration trends; staff said planning and department-level salary savings are also contributing to the improvement in projections.
No board action was taken on the forecast itself; it was presented as financial information to inform upcoming budget decisions and CIP matters.
