APRIL 14, 20 – 7:00 P.M. LINCOLN CENTER...

MINUTES BOARD OF DIRECTORS

BUDGET ADOPTION APRIL 14, 2020 – 7:00 P.M.

LINCOLN CENTER HEARING ROOM

PRESENT: Mayor Moran, Director Dougan and General Manager Shanley.

REMOTE: Deputy Mayor Jones, Secretary Castillo, Directors Bergin, Conyers, Floyd-Cranford, Marois and Schain. Also, Director of Finance Kim Lord, Budget and Research Officer Brian Wolverton and Financial Analyst Farhana Azmat.

The meeting was called to order at 7:00 pm. All in attendance participated in the Pledge of Allegiance to the Flag, led by Mayor Moran.

BUDGET RESOLUTION APRIL 14, 2020

GENERAL FUND

BE IT RESOLVED, by the Board of Directors of the Town of Manchester, Connecticut that the following be and hereby is adopted as the General Fund Budget of the Town of Manchester for the fiscal year commencing July 1, 2020, and ending June 30, 2021.

EXPENDITURES

General Government $6,250,111

Public Works $14,078,753

Public Safety $22,051,570

Human Services $3,149,614

Leisure Services $5,976,935

Education Board of Education $117,774,174

Health-Welfare Private Schools $426,145 Transitional Living Center $68,622

Total Education $118,268,941

Retiree and Pension Benefits $4,696,647

Debt Service $12,961,935

Miscellaneous $413,939

Interfund Transfers $6,516,979

TOTAL GENERAL FUND EXPENDITURES $194,365,424

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Budget Adoption Minutes 4/09/19

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BUDGET RESOLUTION

APRIL 14, 2020

GENERAL FUND REVENUES General Related

Property Taxes, Interest and Lien Fees $150,702,689 Permits, Charges for Services and Other Income $3,778,700 State and Federal Sources $35,537,622 Interfund Transfers $1,846,413 Appropriation of Designated Fund Balance $2,500,000

TOTAL GENERAL FUND REVENUES $194,365,424 BE IT FURTHER RESOLVED that the Board of Directors hereby authorizes the General Manager to authorize the full-time position of Deputy Director of Public Works for Sustainability & Materials, and to amend the job descriptions of Management Analyst and Senior Recreation Supervisor, in accordance with the proposed job descriptions attached hereto. BE IT FURTHER RESOLVED that the performance-based merit increases for unaffiliated employees are authorized between 0% and 2% effective July 1, 2020, and where salary compression or structural issues are identified, the General Manager has discretion to address these issues within budgetary resources, including adjusting relevant salary ranges of the unaffiliated schedule. Director Schain stated he will be voting for the budget as noted before us and is proud to do so. It’s hard to see how anyone could argue with this budget, because it meets the very real needs of our residents and our business community in these very challenging times. This budget provides for no tax increase - a zero tax increase - in the General Fund. In other words, we will not be increasing financial pressures on our people and businesses by raising taxes now. I can assure you that this budget avoids a tax increase in a manner that is fiscally responsible and that protects the well-established financial stability and integrity of our Town, even though others are going to try to tell you something different. It’s important to note that this budget preserves the full range and quality of our Town services, services which people depend upon, and provides the funding needed to preserve the quality of education our public schools offer to Manchester’s young people.


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I extend my thanks and appreciation to the General Manager and Superintendent Geary and their staffs, as well as the Board of Education, for helping us meet our important budget goals. The complex public health and economic crisis we face here in Manchester and across our nation will undoubtedly require budget flexibility on our part during the next year. The budget before us tonight, however, provides a practical and prudent blueprint with which to start the new fiscal year on July 1st, and leaves us in a strong position with real financial strength to make any adjustments that become necessary throughout the year. Given all these sound reasons, I urge all of my colleagues to do the right thing, for the future of our town and the future of our residents, by joining me in supporting this budget package. Thank you. Director Marois commented that as a community, we have come together to fight the coronavirus, and I am so proud to see how our community is handling these unprecedented and uncertain times. Thank you for continuing to support local restaurants and businesses as best you can, while also maintaining social distancing guidelines. Your actions are exactly how we can best support our community and continue to thrive in Manchester. I am amazed to see how well our town staff has rapidly adjusted their way of working amid this ever-evolving virus. Being on the front lines of keeping our community safe and functioning is incredible, and we thank you for your efforts. We can’t forget to say thank you to the super-heroes, the first responders and medical professionals. I can’t express the amount of gratitude we, as a community, have for you in these tiring times. Your persistence and dedication to those in such dire need is appreciated. Our community is in this fight together, and you have done your part to fight this virus. Many of you made sacrifices that you didn’t want to make; like working from home, closing your business, or laying off workers. These decisions are scary, and for many, there is uncertainty about how you’ll collect your next paycheck. Even with Federal stimulus, that can only go so far to help. Yet here you are, still doing your part for the safety of the community. Now that you have done your part, it is our time as your elected officials do our part, to support you as the economic outlook remains uncertain. At a time when every family and business is searching for ways to reduce their expenses, elected officials must do the same. Unfortunately, Manchester’s proposed budget does the opposite and increases taxpayer spending. Manchester residents are all pushed to cut expenses at every corner, and we as a governing body must strive to make tough decisions. Without making our government more efficient now, the burden in the future will be tough to bear when the large use of our reserves fades away. At a time when people are losing their jobs and the economy is facing unprecedented challenges, elected officials should be finding ways to reduce future burdens. Instead, the proposed budget guarantees future burdens. Soon you’ll hear about how successful officials were at achieving a zero tax increase. While I agree with the sentiment of having a zero tax increase, it is misleading. The proposed plan includes taking millions from our emergency fund to pay for non-essential spending increases and that is unsafe. Adopting the current budget only adds future burdens to families. We owe them more than that, especially since the Town has given us an additional 30 days to come up with a more strategic plan. Thank you.


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Director Bergin doesn’t feel the previous comments by his colleague appropriately characterize the use of reserves, as if the reserves are budgeted and then they are spent and they are gone. As he has understood reserves, in review of this budget and past budgets, and in speaking with General Manager Shanley and Budget & Research Officer Wolverton, he noted that reserve funds are put at risk in every budget. Going back five fiscal years, the Town has budgeted an average of $1.7M in reserves every single year and rather than that money being spent and gone, as it has been characterized, the Town has actually spent none of the reserves. We have increased our reserve fund 2.5% over those five fiscal years, and have grown our budget reserve fund by $4.5M. The idea that the money is budgeted and spent on operational needs is inaccurate. The way that it has been described by General Manager Shanley is that this is a way of having money set aside if revenues were to drop or if there were unforeseen expenditures that the Town was to incur. In this pandemic, by definition, that is not non-essential spending but rather it is essential spending if there is an emergency and if the Town needs some discretionary funds to respond to the emergency. While I can’t say for certain that the reserves will dollar for dollar be untouched like they have been in the last five years, if they are spent it would be very much related to the crisis that every town in Connecticut is experiencing. The idea that we should cut expenses and find ways to reduce future burdens, I am not aware of any proposals before us tonight that are alternatives to this budget and I hope that if there are Board members not supporting the Resolution before us that they’d be willing to identify what expenses they are seeking to cut. Thank you. Director Conyers thanked Town staff for their hard work to not only produce the budget but also to offer an amended recommendation in what have been very uncertain times. The COVID-19 outbreak has changed so much over the last month. Our new daily routines are increasingly challenging. Many residents will have difficulties paying their bills, mortgages and taxes in the coming months. Businesses will be forced to adapt and are faced with tough choices of whether to lay off employees, accept loans or how they will be open, if that’s possible, in the future. In these trying times, I believe we must find the best possible solutions with our residents and businesses in mind. In my opinion, putting $2.5 million at risk from our reserves to cover non-essential projects is not the best solution. I believe we should continue finding areas to save our taxpayers money while ensuring a stable reserve account for what lies ahead. Thank you. Director Floyd-Cranford thanked Town staff for their support with this budget. She also thanked Superintendent Matt Geary and the Board of Education Chair, Darryl Thames, for making this budget doable without compromising our children’s education. I’d also like to thank my fellow board members for the long hours and efforts that it took to make this the most fiscally responsible budget possible under these circumstances. As a town leader, I am proud that this budget truly looks to take care of all our residents. For the past few years many people have said that we are in great economic times. From where some of us sit, the economy is good and in fact some would say the economy was great until COVID-19. When you sit in a seat of privilege it can be very easy not to see or understand everyone’s reality. In this “thriving” economy, 65% of the students in Manchester Public Schools qualify for free and reduced lunch based on their family’s income.


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For people who are marginalized and who work but don’t make a lot of money and are economically disadvantaged, they have struggled and continue to struggle in a “thriving” economy. They have jobs but they work for minimum wage. The minimum wage in 2017 was $10.10 and has gradually increased in 2020 in Connecticut to $11 an hour. Thousands of Manchester residents work for minimum wage or barely over that. In these past few years in this “thriving economy” many of our citizens bring home just under $22K a year, not including taxes from that annual salary. I know these residents and you know of these residents. They work long hours at the Dollar Store in the Parkade and then work more hours at Stop & Shop. They work at Family Dollar Store on Broad Street and then they go to their second job at Big Y. They work at the auto stores and meat packing plants. They work at Sally’s Beauty Supply and the other stores in the Parkade that recently had to close due to COVID-19. These are residents in our community and they may see the economy a little bit different because these have not been easy times for them even before this crisis. Where we are looking at going into the rainy day fund for rainy day conditions, it has been pretty much raining for these residents for many years. Many Manchester residents have been laid off and no longer have medical insurance. They can’t pay their rent, mortgages or car loans and some don’t have enough money for bus fare, due to this pandemic. This budget includes not just the perception of our economy but is also based on these realities. This budget takes care of the families from Birch Mountain to the families on Birch Street. This budget shows equity to the residents of Mountain Road to the families on Oak Street and all the streets in Squire Village. This budget considers the Manchester residents who now go to the food banks and stand in long lines at the farmers’ market in Hartford to get food for their children. This budget is for the large business owners and the small business owners. Some people may be too far removed from their own story from when they didn’t have a lot, but I am not so far removed from that story and I can empathize and understand the many residents who are part of our community who need a budget that is fiscally responsible and equitable and fair. Collectively we have made the difficult choice for the benefit of all the people in Manchester. This budget covers all the bases. Everyone has to make some sacrifices. This is the budget where those who have been making the sacrifices and have been struggling the hardest don’t have to be put more at risk. I understand when people are concerned about putting the rainy day fund at risk, but this budget keeps from putting our children and families at risk. I commend my colleagues who support this budget. Thank you. Secretary Castillo thanked Town Manager Shanley and Superintendent Geary, along with their department heads and staff for putting a budget together which has demonstrated collaboration and commitment, especially at this given time with what is happening and not knowing what the future will bring. We have been given a budget that still provides the vital services necessary along with the educational needs for our residents and their families. There will also be no tax increase in our General Fund Budget which will be one less burden to our residents when they are dealing with so many other burdens. Due to these efforts I will be voting in the affirmative to the budget that is being presented to me today. Thank you.


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Vice-Chair Jones expressed her appreciation for General Manager Shanley and Town staff, Superintendent Geary and the Board of Education and Budget and Finance office staffs for their diligence in reviewing the budgets to find savings in an extraordinarily difficult time. That is what this budget has provided. Their work, has given us precious time. Time to see what the short and long term impacts of the pandemic are and what town services may be needed to provide assistance to our residents and businesses, and time to focus on decision making. This budget is not the last decision, but rather one in a string of very difficult decisions that we have been making and will continue to make on behalf of our community. Time will allow us to make the ongoing strategic decisions, difficult decision, that will need to be made. Time to supervise and support our General Manager and Superintendent. We know members of our community are hurting. We know there have been heroic efforts on the part of our delivery services, grocery store staff, first responders, and health care workers. We are indebted to all. Because of those sacrifices, we are committed to our vision for our community, one where all of our residents can thrive. But first we must survive, and that is what this budget will do, aid us in survival and place us in a position to our residents as they move back towards thriving. I would be remiss if I didn’t thank our fellow residents for their thoughtful comments and suggestions as we move through these difficult times. We appreciate your contributions. Thank you. ADOPTED - MOTION TO APPROVE THE BUDGET FOR THE GENERAL FUND. Jones/Castillo 6 Voted in Favor (Directors Conyers, Dougan and Marois voted against)


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BUDGET RESOLUTION

APRIL 14, 2020

SANITATION FUND

BE IT FURTHER RESOLVED that the following be and hereby is adopted as the budget for the Sanitation Fund for the fiscal year commencing July 1, 2020, and ending June 30, 2021. EXPENDITURES Operating Expenses $7,010,813 Interfund Transfers $380,279 Other Non-Operating Expenses $150,000 Total Sanitation Fund Expenses $7,541,092 REVENUES Tipping Fees $7,500,000 Other Revenue $807,000 Appropriation from Net Assets $0 Total Sanitation Fund Revenue and Use of Net Assets $8,307,000 ADOPTED - MOTION TO APPROVE THE BUDGET FOR THE SANITATION FUND. Conyers/Dougan 9 Voted in Favor


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BUDGET RESOLUTION

APRIL 14, 2020

WATER FUND BE IT FURTHER RESOLVED that the following be and hereby is adopted as the budget for the Water Fund for the fiscal year commencing July 1, 2020, and ending June 30, 2021. EXPENDITURES Operating Expenses $6,185,170 Debt Service $548,121 Interfund Transfers $1,914,836 Other Non-Operating Expenses $85,000 Total Water Fund Expenses $8,733,287 REVENUES Sale of Water $8,352,279 Other Revenue $595,136 Appropriation from Net Assets $0 Total Water Fund Revenue and Use of Net Assets $8,947,415 ADOPTED - MOTION TO APPROVE THE BUDGET FOR THE WATER FUND. Schain/Dougan 9 Voted in Favor


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BUDGET RESOLUTION

APRIL 14, 2020

SEWER FUND BE IT FURTHER RESOLVED that the following be and hereby is adopted as the budget for the Sewer Fund for the fiscal year commencing July 1, 2020, and ending June 30, 2021. EXPENDITURES Operating Expenses $5,150,650 Debt Service $3,216,869 Interfund Transfers $1,454,335 Other Non-Operating Expenses $85,000 Total Sewer Fund Expenses $9,906,854 REVENUES Sewer Service $9,404,069 Other Revenue $285,000 Appropriation from Net Assets $217,785 Total Sewer Fund Revenue and Use of Net Assets $9,906,854 ADOPTED - MOTION TO APPROVE THE BUDGET FOR THE SEWER FUND. Bergin/Castillo 9 Voted in Favor


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BUDGET RESOLUTION

APRIL 14, 2020

FIRE DISTRICT SPECIAL FUND BE IT FURTHER RESOLVED that the following be and hereby is adopted as the budget for the Fire District Special Fund for the fiscal year commencing July 1, 2020, and ending June 30, 2021. EXPENDITURES Operating Expenses $16,460,279 Debt Service $103,500 Interfund Transfers $1,455,940 Contingency $20,000 Total Fire Fund Expenditures $18,039,719 REVENUES Property Taxes, Interest and Lien Fees $14,542,616 State and Federal Sources $0 Other Revenue $3,327,103 Appropriation of Fund Balance $170,000 Total Fire Fund Revenue and Use of Fund Balance $18,039,719 ADOPTED - MOTION TO APPROVE THE BUDGET FOR THE FIRE DISTRICT SPECIAL FUND. Marois/Floyd-Cranford 9 Voted in Favor


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BUDGET RESOLUTION

APRIL 14, 2020

INFORMATION SYSTEMS FUND BE IT FURTHER RESOLVED that the following be and hereby is adopted as the budget for the Information Systems Fund for the fiscal year commencing July 1, 2020, and ending June 30, 2021. EXPENDITURES Operating Expenses $1,979,799 Transfer to Capital Improvement Reserve Fund $311,000 Total Information Systems Fund Expenditures $2,290,799 REVENUES User Charges $2,027,969 Interest on Investments $30,000 Use of Net Assets $232,830 Total Information Systems Fund Revenue and Use of Fund Balance $2,290,799 ADOPTED - MOTION TO APPROVE THE BUDGET FOR THE INFORMATION SYSTEMS FUND. Floyd-Cranford/Castillo 9 Voted in Favor


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MILL RATE CALCULATIONS

FY 2020/21 GENERAL FUND A. Adjusted Net Taxable Assessment $4,073,579,493 Minus $1M allowance for assessment appeals $4,072,579,493

THEREFORE, 1 MILL = $4,072,579 B. Tax Dollars Required $145,448,689 C. To allow for approximately 97.8% collection

rate, mill rate should be calculated on a higher requirement; divide Item B by 97.8% $148,720,541

D. Item C Amount, $148,720,541, divided by

$4,072,579 36.52 mills FIRE DISTRICT SPECIAL FUND A. Adjusted Net Taxable Assessment $2,691,986,493

THEREFORE, 1 MILL = $2,691,986 B. Tax Dollars Required $14,402,616 C. Item B Amount, $14,402,616, divided by

$2,691,986 5.35 mills SPECIAL TAXING DISTRICT A. Net Taxable Assessment $26,016,490

THEREFORE, 1 MILL = $26,016 B. Tax Dollars Required $75,000 C. Item B Amount, $75,000, divided by $26,016 2.88 mills


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BUDGET RESOLUTION

APRIL 14, 2020

RESOLVED, that in accordance with the applicable provisions of State Statutes, 1958 Revision, and amendments thereto, the Town Charter as amended, and the Town Ordinances establishing a Fire Department Taxing District and a Special Services District, a rate of 36.52 mills on the dollar is hereby levied on the ratable estate of the Town of Manchester, as of October 1, 2019, according to the respective assessments thereon last made and completed, for maintenance and support of school, principal and interest on outstanding indebtedness and current expenses of the Town, excluding those for the two Special Districts, for the fiscal year commencing July 1, 2020, and ending on June 30, 2021; an additional tax rate of 5.35 mills on the dollar is hereby levied on the ratable estate of the Fire Department Taxing District of the Town of Manchester, as of October 1, 2019 according to the respective assessments thereon last made and completed, for payment of current expenses of the Town Fire Department for the fiscal year commencing July 1, 2020, and ending on June 30, 2021; and an additional tax rate of 2.88 mills on the dollar is hereby levied on the ratable estate of the Special Services District of the Town of Manchester as of October 1, 2019, according to the respective assessments thereon last made and completed, for payment of current expenses of the District for the fiscal year commencing July 1, 2020, and ending on June 30, 2021; each of such taxes to be due and payable, one-half on the first day of July 2020, and one-half on the first day of January 2021, provided, however, that any tax on real estate amounting to not more than four hundred dollars ($400.00) shall be due and payable in one (1) installment on July 1, 2020; further provided that any personal property tax amounting to not more than four hundred dollars ($400.00) and any motor vehicle tax of any amount shall also be due and payable in one (1) installment on July 1, 2020.

ADOPTED - MOTION TO APPROVE THE BUDGET RESOLUTION. Castillo/Schain 9 Voted in Favor


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ADOPTED SCHEDULE OF ALLOCATIONS TO CAPITAL ACCOUNTS

AND TRANSFERS TO NON-LAPSING ACCOUNTS AND SOURCES OF ALLOCATIONS AND TRANSFERS FOR FY 2020/21

Capital Improvement Reserve Fund Uses Amount RR 010 Town-wide Bridge Safety and Repair Program $90,000 GR NEW Light Pole Replacement $90,000 GR 148 Bus Shelter Installation & Replacement $20,000 GR 141 Enhanced Pedestrian Crossings $25,000 RR 002 Swimming Pool Upgrades and Major Repair Program $20,000 RR 002 Outdoor Hard Surface Repairs $25,000 GR 173 Artificial Turf Field $12,000 RR 002 Outdoor Court Reconstruction $28,524 RR 009 Park Upgrades $60,000 GR 170 Passive Recreation Oversight $37,000 GR 172 Community Y Improvements $17,500 GR NEW Athletic Field Lighting $10,000 RR 005 Equipment & Vehicles Replacement Plan $430,000 RR 004 Mechanical Systems $37,672 RR 004 Electrical Systems $40,000 RR 004 Interior Building $40,000 RR 004 Life Safety Systems Replacement $25,000 GR 171 Cheney Hall Maintenance $25,000 GR 112 Probate Court Maintenance $15,000 GR NEW Sustainability & Green Energy $30,000 Source General Fund- Fixed/Miscellaneous $1,077,696 Local Capital Improvement Program (LoCIP) Uses Amount GR NEW Case Cabin Improvements & Vista Landscaping $300,000 GR NEW Charter Oak/ Mt Nebo Trail Upgrades $85,000 GR NEW Cheney Rail Trail Amenities $75,000 GR NEW Skate Park $125,000 Source Local Capital Improvement Program (LoCIP) Grant $585,000


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Closure of Existing Project Account Balances to Unallocated Reserves Uses GR 000 Unallocated General Fund Reserves $398,281.31 Sources GR 174 Retro-Commissioning Town Buildings $170,000.00 GR 132 Case Mountain $97,806.85 GR 130 Sidewalks- Hillstown Rd & Spencer St $119,684.19 GR 153 Salt Shed Replacement $5,886.80 GR 161 Whiton Library Chiller $2,952.47 GR 187 Skate Park Concept Plan $1,951.00 Sewer Reserve Fund Uses Amount SR 435 Video Truck Replacement $215,000 SR 432 Aeration Blower Service Plan $75,000 SR 374 Vehicle Replacement $40,000 SR NEW Generator PLC Upgrade $150,000 Source Sewer Fund Transfer to Sewer Reserve $480,000 Uses WR 291 Water Meter – Annual Purchase $50,000 WR NEW Lab Hood Replacement $30,000 Source Sewer Fund Transfer to Water Reserves $80,000


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Use of Unallocated Reserves for Capital Projects Uses RR 004 Mechanical Systems $97,806 RR 004 Exterior Building $100,000 RR 002 Outdoor Court Reconstruction $61,476 RR 005 Equipment & Vehicles Replacement Plan $170,000 Source GR 000 Unallocated Reserves $429,282 Special Grant Fund Uses Amount SG 022 Dial-a-Ride Operations $140,000 SG 313 Downtown Arts & Culture Grant $30,000 SG 081 Channel 16 $10,500 SG 101 Arts Commission $3,000 Sources General Fund- Fixed/Miscellaneous $183,500

Fire Fund Uses Amount FR 449 Fire Apparatus Replacement Fund $350,000 FR 456 Fire Department Roof Replacements $100,000 FR NEW Staff Vehicle Replacements $25,000 Source Fire Fund Transfer to Fire Reserve $475,000


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Information Systems Reserve Fund Uses Amount IR 619 Information Tech. Replacement/Upgrades Program $110,000 IR NEW Website Redesign $60,000 IR NEW Web Applications $60,000 IR NEW Camera Management System $81,000 Source Information Systems Fund Transfer to Reserve $311,000 Water Reserve Fund Uses Amount WR 291 Water Meter – Annual Purchase $50,000 WR 392 Water Pump Replacement/Well Redevelopment $50,000 WR 413 Filter Media Replacement $45,000 WR 388 Tank Painting $75,000 WR 412 SCADA Water Treatment System $90,000 WR 423 Effluent Pump Motor Control Replacement $32,500 WR 427 Replace Broken Butterfly Valves $150,000 WR NEW Lab Hood Replacement $30,000 WR NEW Backhoe Plate Compactor $15,000 WR 386 Heavy Equipment Replacement – T&D $185,000 WR NEW Organic Compound Reduction at Wells $175,000 Source Water Fund Transfer to Water Reserve $897,500 ADOPTED - MOTION TO APPROVE THE SCHEDULE OF ALLOCATIONS TO CAPITAL ACCOUNTS. Castillo/Jones 8 Voted in Favor (Director Marois voted against)


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RESOLUTION OF THE BOARD OF DIRECTORS OF THE TOWN OF

MANCHESTER, CONNECTICUT WHEREAS, in response to the COVID-19 pandemic and pursuant to his authority within his proclamation of a state of emergency throughout the State of Connecticut, Governor Lamont has issued a number of executive orders; and WHEREAS, Executive Order No. 7S, issued on April 1, 2020, suspends and modifies certain tax deadlines and collection efforts; and WHEREAS, paragraph 6 of Executive Order No. 7S requires municipalities to participate in one of two programs, each of which provide support to taxpayers, businesses, non-profits and residents; and WHEREAS, paragraph 6 of Executive Order No. 7S mandates that the legislative body of the municipality select which of the two programs it will participate in and notify the Secretary of the Office of Policy and Management of its decision by no later than April 25, 2020. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Town of Manchester, by an affirmative vote of its members, hereby adopts the Deferment Program as set forth in paragraph 6.a. of Executive Order 7S and extends the program to all categories of taxpayers, businesses, non-profits and residents. Further, it is resolved that the General Manager, or his designee, shall promptly notify the Secretary of the Office of Policy and Management of Manchester’s selection, with such notification to occur no later than April 25, 2020. ADOPTED - MOTION TO APPROVE THE RESOLUTION AS STATED ABOVE. Castillo/Bergin 9 Voted in Favor Mayor Moran stated taxes come out July 1, 2020 and will be due before October 1, 2020 before they are considered late. General Manager Shanley confirmed that all personal property and vehicle taxes that were due July 1st are now not considered late until after October1, 2020. No interest will be accrued until after October 1st.


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Director Dougan thanked Mayor Moran for his continued leadership during these most difficult times. To all Directors on this board, the hard work you have put into this budget process, the diverse and insightful questions that were asked have collectively given me a greater understanding of the budget during this important process. What unprecedented times we are experiencing. This Corona virus attacked so quickly. She thanked General Manager Shanley for managing a quick response to this dangerous, evolving situation. On behalf of the minority party on the Board of Directors, I would like to congratulate you and your management team for rising to the challenge. To first responders meeting this danger head on, a heart filled thank you to you. Town water is flowing and the sewers are draining and the parks are available for passive use. We are functioning as a Town and we are grateful. What stands ahead will be difficult. Over 75% of the country is financially affected by this corona virus. Our Town residents are hurting. Major corporations in the area are enacting 10 and 20% loss of wages through furlough days. Nonessential retail is closed. Many, I fear, I know, will never reopen, so many layoffs. I question what our town retail will look like on the other side of this pandemic and how it might affect our grand list. We must be ready for that. Financial analysts are predicting the affects from this virus will last more than a year, possibly several years. We must be prepared. We all know that keeping the Town’s reserves available and at levels that do not affect our bond rating is paramount. General Manager Shanley, you wrote a budget, and in the middle of a major crisis you were challenged to rewrite that budget. That was no easy task. And now as the Town and its employees discover a cadence to this new normal, it is my hope for the taxpayers of Manchester that you will rise to the challenge once again, to find more sustainable cuts to this budget. I believe we have to look at least two years out in order to keep up with adjustments that are going to have to be made. The State of Connecticut is going to take hits in income tax and sales tax. The residents of this Town will be affected. The task of sound, sustainable budget reductions rests even more heavily on the Board of Education and Superintendent Geary. I greatly respect the challenge he was up against gearing up teachers and students to teach/learn in a whole new way. It will be a challenge, but know that this Town will be with you as you rise to the occasion. This is budget night, we speak of numbers and money and wages yet to be earned. But before leaving here tonight let us acknowledge the loss of loved ones in our community. To all those grieving tonight and in the days to come know that our mindful and prayerful thoughts are with you. During the height of yesterday’s storm, I looked across the street from my mom’s house. This line of tall unkempt ash trees along the farmer’s field were giving way and bending so much in that strong wind and pelting rain, I just wanted to huddle and take cover. Then I saw her, this grand, beautiful hawk, in this storm, finding draft and taking lift and suspending herself high over the meadow in the middle of this storm. It made me cry and gave me hope and filled me with a sense of strength and reminded me of all that is good and possible and joyful as we weather this corona virus storm. Let us all find small opportunities during this difficult time to lift our thoughts and our hearts and know that we will soar again soon. Thank you Mayor.


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Mayor Moran thanked General Manager Shanley and Budget and Research Officer Brian Wolverton and their staffs for crafting the General Manager’s recommended budget for the fiscal year 2020-2021. I would like to also thank our department heads and Town staff, as well as Superintendent Geary and his staff and members of the Board of Education for their time and input in the budget process. The time, information, and passion you put into your presentations are very helpful in assisting the Board of Directors in the decision making for this budget. And of course we thank our citizens for their very important feedback through public comments, emails, or through direct contact with Board members. Your input is very important. The job of passing an annual budget is one of the most important duties of the Board of Directors. We do not take this responsibility lightly. After spending a few months of breaking down the General Manager’s recommended budget and spending several weeks talking with and listening to the department heads’ budget requests as well as the Board of Education’s recommendations, we adopted the FY21 budget this evening. Back in early March, Mr. Shanley suggested a budget that would have resulted in a 2.28% increase to the General Fund mill rate. But as we got toward the end the workshops, the country, our state and our Town ran right into COVID-19. Since the recommended budget roll out, we have seen many of our businesses shut down, our schools forced into emergency distance learning and many of our citizens laid off or furloughed from their jobs. We are addressing not only the most serious health crisis in our lifetimes but an economic challenge that soon may also be historic. As the repercussions of the pandemic grew, the Board of Directors charged Town staff to look at a 0% mill rate increase. Tonight we passed the FY21 budget without an increase to the General Fund mill rate. The FY 20/21 General Fund mill rate will mirror our present fiscal year at 36.52. To get to zero, there had to be a $3,445,000 in reductions in expenditures from the original budget proposed in early March. This reduction in expenditures comes from $1,202,000 on the municipal side and $2,253,000 from the Board of Education. The reduction in revenue from the motor vehicle supplemental tax was projected at $200,000 and a reduction in interest earnings of $190,000. Fund balance at risk was increased from $2.25 million to $2.50 million. The General Fund increase is 1.09%, with the Town side increase of 1.13% and a big chunk of the increase in the Police Department for pensions, wages and overtime. Revisions to Mr. Shanley’s new budget come with Capital Project postponements, cuts to Public Works, police purchase items and library hours. Vital programs and services must and will continue. One time cuts include summer camp and the fireworks event which will return in the summer of 2021. The biggest portion of the General Fund is the Board of Education budget with a 1.07% increase down from a 2.7% increase last year. We are committed to education! The community of Manchester believes in education. That was loud and clear when we passed two school referendums totaling over $172,000,000. We must continue to work with our State Legislation to assist with costs from magnet school tuition and special education costs that our local Board of Education has no control over. Again, thank you to Superintendent Geary, Chairman Thames and the Board of Education for their work in this process. Your teamwork and your willingness to work on reductions during this crisis are greatly appreciated! The Board of Education will look into cost savings this year and will also be deferring capital programs and projects for future budgets. As Mr.Geary said last week, “Decisions about the rest of the reductions will be made with the goal of protecting programs and positions to preserve the most supportive environment possible for the students.”


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The Fire Fund originally presented in March offered a 4.83% increase to its mill rate and after reconsideration over the last month the mill rate passed tonight with a 3.82% increase. The costs driving the increases are pensions, worker’s compensation and the reduction in the SAFER grant cost sharing for 3 new firefighters. Efforts to defer roof replacements, building repairs, vehicle replacements and apparatus replacement payments assisted in lowering the overall increase. I want to thank Chief Billings and Assistant Chief French for your work. The financial impact on a home in the South Manchester Fire District valued at $175,000 is $29.75/year. The water and sewer rates passed with a 2% and 3.5% increase respectively and they do not deviate from a multiyear plan adopted by previous boards. According to staff, to have forgone rate increases in FY21 would have to be dealt with through a number of adjustments over the next 6 to 10 years as well as the upcoming year. As result of the crisis, there is a chance of water consumption going down which effects revenue. Foregoing these rate increases could have caused a cash flow problem and could have impacted necessary water and sewer operations. Through this budget adoption the Board of Directors formally recognizes the urgent need to preserve Manchester’s resources for today and for future generations through the creation of a sustainability program and the full time position of Deputy Director of Public Works for Sustainability and Materials. However, this is not just a budget move and staffing realignment. According to former Deputy Mayor Peg Hackett, who played a key role in establishing the sustainability task force,” This is a move to strategically and permanently integrate sustainable practices, programs, and policies across every area of our Town’s operations and services, ensuring Manchester remains a thriving efficient, healthy and vibrant community. This work is far-reaching and elevates our town and its citizens in meaningful ways.” I would like to extend my gratitude to all those sitting around this horseshoe, or those who normally sit around the horseshoe, my fellow colleagues on the Board of Directors. Thank you for attending workshops, reading documents and asking questions. I thank you for your time and commitment during this process. Although, we always try to pass a budget 9 to 0, I realize that we are close. The difference between those who voted to move the General Fund forward and those who voted against it was about $500,000, out of a budget close to $195,000,000. We agreed to a 0% mill increase but could not get on the same page when it came to using reserves. That’s where were we were last week and that’s where we are tonight. That difference in philosophy won’t change by postponing the adoption to next week or the week after. Director Dougan, we may not agree completely tonight, but thank you for your leadership through this process. We will get up tomorrow and work on something new. So tonight we adopted a budget and tomorrow Mr. Shanley and Mr. Geary can concentrate on their number one present priority, COVID-19 and its effects on our town and school system. In these times of uncertainty, I have the utmost confidence in Mr. Shanley and Mr. Geary more than ever. As Governors in the region yesterday said, “None of us have done this before!” One thing we have done several times before is the use of reserves to help balance the budget. I believe our General Manager will do everything he can to not spend those reserves. He has never used them. Because of the responsible leadership of past boards, conscientious and conservative stewardship, and the support of its citizens, Manchester has built healthy reserves to prepare us today and for what may lie ahead. Even if we were to spend this FY 21 allocated reserves and maybe some next year, we still would be near the percentage of reserves versus the overall budget that would protect our bond ratings. Furthermore it gives both the municipal staff and the Board of Education staff the whole year to strategically prepare for FY 22 and the challenges ahead. They


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will roll up their sleeves along with the Board of Directors and Board of Education to look very closely at all our expenses and revenues. Tonight, we adopted a budget that doesn’t fall on the backs of our citizens while protecting the vital services and programs necessary for our Town now more than ever. Furthermore, we passed a Resolution giving individual taxpayers the ability to pay their July 1st tax bills with no interest penalty until October 1, 2020. We understand these are very stressful times and we will be here to assist our neighbors in need. We need to come and stay together for our families, our neighbors and our community. COVID-19 is invisible and dangerous. We will continue to social distance to stop the spread, flatten the curve and chase this virus away. Together and yes apart from each other, we can stop it and together we can reopen our businesses, get people back to work and get our children back to school. As Helen Keller who faced many struggles in her life said, “Alone we can do little; together we can do so much!” It’s up to us, all of us. Let’s do it! May God bless our great country and may God bless Manchester, and a big thank you to our healthcare heroes! Good night. ADJOURNMENT: The meeting was adjourned at 8:10 p.m. until the May 5, 2019 Regular Meeting of the Board of Directors at 7:00 p.m. in the Lincoln Center Hearing Room. Bergin/Jones 9 Voted in Favor lgl APPROVED: ATTEST: ____________________________________ Secretary, Manchester Board of Directors

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