Manchester board adopts $253.9M budget, sets mill rate at 41 mills

The Town of Manchester Board of Directors voted unanimously Tuesday to adopt a $253,922,254 general fund budget for the fiscal year beginning July 1, 2026, setting the general fund mill rate at 41 mills.

Deputy Mayor Jones read the budget resolution and itemized department allocations, including general government at $8,538,960, public works at $17,418,369, public safety at $44,046,039 and a board of education total of $127,983,133. “Be it resolved … that the following be and hereby is adopted as the general fund budget of the Town of Manchester for the fiscal year commencing 07/01/2026 and ending 06/30/2027,” Deputy Mayor Jones read while presenting the finance and revenue figures.

The motion to adopt the general fund budget was moved by Vice Chair Jones and seconded by Director Floyd Crawford; the board recorded a 9–0 vote in favor.

Nut graf: The adopted package trims the manager’s original proposal and reduces an initially projected 8.66 mill increase to an approved 2.96 mill increase, which the chair said was achieved through about $9 million in adjustments to the manager’s recommended budget, including approximately $7.8 million in reductions to the board of education recommendation and $5.2 million in additional state grant funding.

Board members framed the vote as a balance between preserving services and limiting tax impacts. One director said the board “found ways to save more than $1,100,000” through line-item reviews, citing a $75,000 saving by alternating street-line painting to every other year. Director Lentini emphasized the local impacts of broader economic pressures and said the board rejected an 8.6 mill increase in favor of a smaller package that preserves programs for seniors, youth and residents in need: “We listened to comments from residents and businesses throughout this process, and that input can be seen throughout this budget.”

Town Manager Steve Stefano spoke during the water-and-sewer discussion and identified three primary drivers for higher rate increases: compliance with state and federal regulations (including PFAS treatment needs), deferred capital investments and staffing to operate a modern utility. “PFAS … is in some of our wells that we need to do substantial investments in over the next several years,” Stefano said, explaining the justification for proposed water and sewer rate adjustments.

The board adopted several enterprise fund budgets by unanimous votes: the Sanitation Fund (total expenses $10,513,356), the Water Fund (total expenses $16,697,835) and the Sewer Fund (total expenses $16,138,369). The chair noted that, under the adopted budget, the average Manchester homeowner (home value cited in the meeting as roughly $330,000) would see an estimated increase of about $23 per month, or $276 annually, compared with a larger estimated increase under the manager’s original recommendation.

The mill-rate and tax-resolution language adopted by the board sets the town’s general fund rate at 41 mills and applies the statutory motor-vehicle rate of 32.46 mills. The resolution also establishes an additional 4.18 mills for the Special Services District and sets usual tax payment schedules (half due July 2026 and half due January 2027, with small-dollar exceptions noted in the motion).

Other budget highlights approved by the board include authorization for two full-time positions (a property maintenance inspector and a real property appraiser), performance-based merit increases for unaffiliated employees (authorized between 3% and a higher amount where salary compression or structural issues are identified), and continued funding for a warming center and additional school and library staffing tied to a new library opening.

The chair closed the meeting by thanking staff and department heads for their work on a process the board described as difficult but collaborative; the board then voted to adjourn.

What happens next: The budget takes effect July 1, 2026; the town will implement the approved positions, rate adjustments and program funding as described in the adopted resolutions.