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Manchester forecasts small FY2025 operating deficit; board passes bond resolution
Summary
City finance staff reported a modest FY2025 operating deficit driven primarily by police overtime; the board also passed a bond resolution by title during the Nov. 19 meeting.
Finance staff told the Board that the current projected FY2025 general fund operating deficit stood at $71,000 (composed of an expenditure deficit of $711,000 and a revenue surplus of $640,000) based on department head estimates as of Nov. 19. The forecast attributes the expenditure gap largely to police overtime driven by 22 vacancies and to severance/payroll timing. Interest income and motor vehicle registration revenues improved the forecast relative to the previous month.
The finance director said the city’s 7s account (reserve) is expected to hold about $1.2 million after entries are posted, and cautioned that winter months are the highest fiscal-risk period. The board discussed monitoring overtime and exploring cost-savings measures that do not affect public safety.
Separately the board passed a bond resolution by title as part of the evening’s agenda. The finance presentation and passage of the bond resolution occurred in sequence; staff reiterated they would continue to monitor police overtime and winter spending and report back if the deficit trajectory worsens.
What’s next: Finance staff will provide monthly forecasts and a plan to address overtime and staffing vacancies; aldermen asked for follow-up reports if projections change materially.
