City Adopts FY24 Budget

The City Council unanimously approved the FY24 budget submitted by City Manager Karen Conard. This budget, totaling $137,283,375, includes adjustments to compensate for the loss of nearly $4 million in one-time State and Federal funding received in FY23 and results in an increase of just 3.67%, which is below the directive of 4.5% provided by the City Council and well below the current rate of inflation.

The FY24 Budget results in an estimated tax rate of $16.13, an increase of 93 cents or 6.13% over FY23, an annual increase of $447, or $37 per month, for the median single family residential home valued at $480,100. The final tax rate is set by the New Hampshire Department of Revenue Administration (DRA) in the Fall, once all state revenues, property valuation, and county tax obligations are finalized, and the first half of the tax bill will be due in December 2023.

To lessen the impact of the gap left by one-time revenues in the FY23 budget, the FY24 budget utilizes $759,000 of American Rescue Plan Act (ARPA) funds and $2,000,000 from Unassigned Fund Balance to offset taxes, for Capital Improvement Projects, and IT Upgrades and Replacements. This use of both ARPA funds and Fund Balance monies is also intended, over a two-year implementation schedule, to provide a smoother transition for absorbing the increases.

The Proposed Operating Budget (81% of the total budget) is $111,675,612. This represents an increase of $5,540,429 or 5.22% over FY23. The Operating Budget finances the services provided by the General Government, Fire, Police, and School Departments as well as General Fund obligations for the Indoor Pool, Prescott Park, and Community Campus.

The Proposed Non-Operating Budget (19% of the total budget) is $25,607,763 and reflects a decrease of $681,965 or -2.59% from the prior year. The Non-Operating Budget includes expenditures associated with Debt Service, Overlay, Rockingham County Tax, Property & Liability, Landfill Closure Monitoring Fees, and other Legal Obligations, and funds the continued investment in the City’s programs and infrastructure needs, as identified in the Capital Improvement Plan (CIP).

The City Council approved six budget resolutions for Fiscal Year July 1, 2023, through June 30, 2024:

• Resolution No. 9-2023 – Municipal Fees
• Resolution No. 10-2023 – General Fund Expenditures
• Resolution No. 11-2023 – Water Fund Expenditures
• Resolution No. 12-2023 – Sewer Fund Expenditures
• Resolution No. 13-2023 – Special Revenues (including American Rescue Plan (ARPA)), Debt Service Fund, and Committed Fund Balances for Necessary Expenditures
• Resolution No. 14-2023 – Investment Policy

Go to the final FY24 budget.