UPCOMING
BUDGET
MEETINGS:
Wednesday, March 30
7 p.m.
City Council Workshop
Budget review:
School, Executive, Finance, Planning and Information Technology departmental budgets
Wednesday, April 6
7 p.m.
City Council Workshop
Budget review:
Welfare, Library, Recreation and Community Services, departmental budgets
Wednesday, April 13
7 p.m.
City Council Meeting
School budget public hearing
Wednesday, April 20
7 p.m.
City Council Special Meeting
City budget public hearing
Wednesday, April 20
Following Special Meeting
City Council Workshop
Fire and Police departmental budgets
Wednesday, May 4
6 p.m.
City Council Workshop
General budget review
Wednesday, May 4
Following Workshop
City Council Special Meeting
Budget adoption
Wednesday, May 11
7 p.m.
City Council Meeting
Fallback budget adoption date
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INFORMATION, RESOURCES
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On Wednesday, March 23, 2022, I presented the proposed Fiscal Year 2023 budget to the City Council.
The budget can be viewed online here, and copies are available for review at the Public Library and City Hall. The video of my presentation is available online here.
In my letter to the City Council, included as part of the budget, I explain that the budget proposal continues to prioritize and support efficient delivery of core municipal services in the areas of public safety, education and infrastructure maintenance along with other basic yet essential local government activities. It does so cognizant of the challenges we face in securing the supply and delivery of certain commodities, recruiting and retaining qualified employees in a scarce labor market and other increasing inflationary pressures that are developing from the impacts of the COVID-19 pandemic and the ongoing war in Ukraine perpetrated by Russia.
Budget Considerations and Development
Consistent with efforts undertaken in years past, the development of the Proposed Fiscal Year 2023 Budget results from a continuous and ongoing review of all municipal functions and service priorities by the elected Dover School Board and our administrative staff in consultation with the citizen members of various advisory boards and commissions. Ultimately, the proposed budget has been directly influenced by identifying and responding to the varied needs and interests of our customers – our community's residents, businesses and visitors.
In striving to meet our customers' needs and expectations and address the many other factors that influence the budgeting process, including contractual obligations and costs downshifted from other levels of government, this budget proposal reflects a total of $180,987,528 for spending across all funds. This is an 11.1% increase over the prior year, comprised of a 13.4% increase attributable to school-related expenses and a 9.2% increase attributable to all other non-school-related expenses.
Please be aware that the estimated local school portion of the property tax levy for the proposed budget is an estimated $4,284,435 more than the corresponding amount reflected in the tax cap formula. This overage is partially attributable to a $2,017,611 reduction in state education funding. In accordance with the City Council's earlier budget guidance, the School Board has continued to identify and is expected to present before your final budget vote the various options they may consider in making cost reductions and/or revenue adjustments to fall within the property tax cap levy.
The tax cap overage attributable to the school portion of the tax cap formula, as noted above, is partially offset by the estimated city property tax levy being $100,000 less than the amount reflected in the City portion of the tax cap formula. As a result, the proposed budget as assembled exceeds the tax cap requirements of our City Charter by an estimated $4,184,435. Therefore, the adoption of the budget as currently presented will require a two-thirds affirmative vote by the City Council as opposed to a simple majority.
Budget Prioritization
The budget for Fiscal Year 2023, as proposed, reflects an allocation of resources that will address our community's overall strategic priorities and diverse requirements for municipal services. Those priorities have been derived and are continuously refined by listening to the "voice of our customers." This is accomplished through several means, including the engagement of residents and business owners in collaborative planning and community problem-solving activities, citizen input provided during public hearings and citizen forums, formal and informal customer surveys, actual demand for services, and the mandates imposed by state and federal agencies as directed by those legislative bodies. Ultimately, feedback from our customers drives the strategic planning incorporated into our community's Master Plan and reaffirms the following strategic focus areas for the prioritization and allocation of available funds:
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Public Safety – To proactively protect citizens and mitigate losses from medical emergencies, crime, fire and natural/manmade disasters.
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Public Education – To support and provide access for all students to experience opportunities for a quality education.
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Public Infrastructure – To maintain safe and reliable public roads, stormwater, drinking water, sewer systems, and municipal facilities.
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Economic Development – To support and encourage a quality of life that sustains a robust economy and availability of quality employment.
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Fiscal Stewardship – To responsibly manage and ensure the sustainability of financial practices necessary for the ongoing provision of all essential municipal services.
Core Service Deliverables
The core services to be supported by the resources allocated within the Proposed Fiscal Year 2023 Budget include the essential functions of general government, public safety, public works, culture and recreation, human services, and education. Other resource allocations include our community's required share of funding for intergovernmental services provided by Strafford County.
In evaluating the funding requested and deemed necessary to include in the proposed budget for the core services and various activities and programs delivered by our municipal government, prime consideration was given specifically to those services that continue to be mandated or otherwise are legally required to be provided. Additional consideration was given for those services that substantially covered their costs via grants and/or user fees, those services with increasing demand for services and those services that were not otherwise readily available via the private sector.
Throughout the proposed budget, contracting of numerous services for delivery by private sector providers was evaluated and, if proven cost-effective, was recommended. This includes contracting in the areas of grounds care maintenance, road and utility construction, solid waste and recycling, specialized administrative, technical and consulting activities, facility repairs, and more. Where deemed necessary and proven to be the most effective and efficient means for delivering services, dedicated and competent staff have been employed and are proposed to continue delivering services in-house.
As identified in the various sections of this document, the Proposed Fiscal Year 2023 Budget reflects certain adjustments to ensure that core service deliverables are maintained and remain sustainable for the long term. In proposing the priorities and adjustments reflected throughout the proposed budget, additional consideration was given to ensure that our limited resources are also being invested wisely into the service areas that support leading practices.
Some of the more significant adjustments in this year's proposed budget include the following:
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Public Education – Reflects funding recommended by the Dover School Board to meet School Department obligations, including offsetting a significant loss in state education funding.
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Public Safety – Funds the activation of a third emergency ambulance to address multiple simultaneous calls and improve response time. Includes the hiring of eight new firefighter positions required for staffing the third ambulance across four shifts, 24 hours a day, seven days a week. The first year of the additional ambulance service is funded 100% by grant funds, gradually reduced in future years. Continues funding of an existing social worker position within the Police Department, connecting residents with mental health and social services, utilizing 55% grant funds for the current year. Continues funding of three existing police officer positions utilizing up to 100% grant funds, gradually reduced in future years. Funds a continuing program for mental health and wellness for Police and Fire Department employees, utilizing 100% grant funds, gradually reduced in future years.
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Information Technology – Funds two new IT positions supporting the specific operational needs of Police, Fire and Community Services Departments utilizing 100% grant funds, gradually reduced in future years. Funds cybersecurity needs, including application maintenance updates and replacement of an aging enterprise-wide backup system utilizing 100% grant funds.
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Business Development – Reflects the funding associated with the reorganization of the Office of Business Development to include the addition of a new Business Development Coordinator position to be hired mid-year.
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Human Resources – Funds across all city departments the implementation of the second year of a contractually negotiated classification and wage plan as recommended by an independent consultant and subsequently authorized by City Council. Funds the administration of new employee background checks for all City departments within the Office of Human Resources.
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Pavement, Sidewalk and Bridge Improvements – Funding continues to be incrementally increased for ongoing street pavement repairs remaining on track for a one-year timeframe for achieving the target level identified in the most recent Capital Improvements Program (CIP). Sidewalk and bridge improvements are fully funded for the current year at the CIP target level.
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Utilities – Funds a new pump station operator position in the Water Fund in anticipation of a new Pudding Hill Aquifer Treatment Plant being constructed and becoming operational.
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Public Transit – Funds a significant increase in Dover's share of COAST public transit system for inter- and intra-city routes utilizing grant funds. The first year is funded 100% by grant funds, gradually reduced in future years.
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Grant Reimbursement – Funds continued homeless support services, including shelter operations and mobile trailer operations, utilizing 100% grant funds for three years. Funds water and sewer infrastructure-related projects including 100% cost of existing engineer position, utilizing grant funds gradually reduced in future years. Funds COVID-19 related expenses including reimbursement for existing positions involved with continued grant administration and reporting, business assistance and public health communications, utilizing up to 100% grant funds gradually reduced in future years,
Conclusion
Over the next several weeks, the School Board, department heads and I look forward to providing more detailed information regarding the various revenue and expenditure items included in this proposed budget.
I wish to thank the School Board, the School Superintendent, our department heads and their staff for the effort invested in assembling this budget. I also specifically wish to acknowledge Dan Lynch, our Finance Director and his staff for the considerable effort invested in producing the budget book and other supporting materials.
Lastly, as I have done in years past, I want to note the significant and extraordinary efforts our municipal employees make day in and day out in delivering the many varied services and programs that contribute to our community's overall quality of life. Having dealt with the COVID-19 situation and other challenges that have arisen throughout the year, we have been well served by the dedication, commitment and perseverance of our teachers, maintenance workers, administrative staff and public safety forces. Please join me once again in acknowledging and thanking them for not only their dedication and the positive difference they make in our lives and others each and every day, but the comfort and selfless service they give to our community at all times.
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J. Michael Joyal, Jr.
City Manager
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The proposed budget for fiscal year 2023 is $180,987,528 across all funds, an increase over the previous year of $18,134,646, or 11.1%. The General Fund portion of the budget, funded primarily through property taxes, is $141,057,001, an increase over the previous year of $10,542,897, or 8.1%.
The total estimated tax rate, as proposed, is $22.67 per $1,000 valuation, an increase over the current rate of 97 cents per $1,000 valuation, or 4.5%. This estimated total tax rate breaks down as:
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City portion: $8.15, an increase of 13 cents, or 1.6%;
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School portion, local: $11.09, an increase of $1.16, or 11.7%;
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School portion, state: $1.15, a decrease of 47 cents, or 29%;
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Strafford County portion: $2.28, an increase of 15 cents, or 7%.
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Based on the average residential property assessment of $368,141, the estimated average property tax bill, based on the proposed budget, is $8,344, an increase of $357, or 4.5%.
The final tax rate for Fiscal Year 2023 will be certified by New Hampshire Department of Revenue Administration in the Fall of 2022, once they have information on the adopted budget and taxable assessed property values.
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Long before a proposed budget is presented to the City Council, many factors contribute to how the budget is developed over the course of the fiscal year. Although the budget is largely the result of a detailed and complex analysis of city finances, many other factors help shape the proposed budget.
The budget is developed with direction from the adopted City Financial Policies. These include maintenance of reserves, capital outlay financing and debt policies. (The financial policies are included in FY 2023 Proposed Budget in Appendix A on page 783.)
The City's budget process begins annually in the fall with the Capital Improvements Program (CIP) budget. All capital spending of $25,000 or more for items with useful lives of three years or longer is included in the CIP. Based on City Council financing policy, items are identified for bonding, annual operating budget or other types of financing. Items identified for the annual operating budget are included in the next City Manager's proposed annual budget.
Departments are responsible for submitting their annual budget request to the City Manager. After reviews with the departments, the City Manager makes any final adjustments to the proposed budget. The City Manager's proposed annual budget (which includes the School Board request) for the next fiscal year, is due to the City Council by April 15 of each year. The City Council may add to, or cut from, the Manager's proposed budget by majority vote; however, the City Council must pass the budget by June 15 after separate public hearings for the City and School budgets and the budget becomes effective July 1. To adopt a tax-cap compliant budget, a majority vote of the City Council is required. Adopting a budget above the tax cap requires a two-thirds affirmative vote by the City Council.
If the City Council does not adopt the budget by June 15, the City Manager's proposed budget takes effect July 1. After the original budget is adopted, the City Manager may make appropriation transfers within a non-school department or transfer between non-school departments with City Council approval. After initial adoption, the City Council may amend the budget by a two-thirds vote.
Several other factors contribute to the development of the budget over the course of the year, including:
The Master Plan
The Master Plan is a comprehensive plan which guides the long-term development of the community. This plan is a good gauge of community expectations and priorities, and is an important contributing factor to the proposed budget. For more on the Master Plan, click here.
Contractual obligations
Another important factor in developing the budget is the City's contractual obligations. These include debt service, long-term contracts with vendors, and labor contracts, for example.
Operational needs
A careful analysis of the city's operational needs, including inflationary increases, is another factor in preparing the budget.
Mandates and downshifting
Preparing a proposed budget also requires careful attention to the cost of state and federal mandates and the downshifting of costs. This includes the permitting for wastewater treatment, stormwater mandates by state and federal agencies and the associated equipment upgrades, and reduced education adequacy funding. These and other mandates or downshifting of costs to the city can have financial implications in the current fiscal year and for years to come.
Solid financial policies
In preparing the budget each year, the city adheres to consistent and established financial policies. These policies ensure stringent compliance with accounting and budgeting standards, balanced budgets, and maintain stabilization funds, such as the fund balance.
The Tax Cap
By charter, the City of Dover's budget is required to meet the constraints of a tax cap, which limits spending based on a formula that weighs development, the prior year's budget, and the cost of living index. The budget process is guided by the provisions of the tax cap. Proposed budgets above the tax cap require a two-thirds majority vote of the City Council.
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Want to know more? In addition to the online resource for this fiscal year's budget, check out Budget Revealed for more information about the budget process, including previous budgets, insight into the budget cycle, and additional multimedia content.
Click on the image below to view:
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