UPCOMING
BUDGET
MEETINGS:
Wednesday, Feb. 21,
7 p.m.
City Council Workshop
Budget review:
School, Executive, Finance, Library, Welfare, and DoverNet departmental budgets
Wednesday, Feb. 28
7 p.m.
City Council Regular Meeting
School budget public hearing
Wednesday, March 6
City Council Workshop
Budget review:
Police, Fire and Rescue, and Planning departments
Wednesday, March 13
7 p.m.
City Council Meeting
Regular meeting
Wednesday, March 20
7 p.m.
City Council Special Meeting
City budget public hearing
City Council Workshop
Community Services and Recreation budgets
Wednesday, March 27
7 p.m.
City Council Meeting
Regular meeting
Wednesday, April 3
6 p.m.
City Council Workshop
General budget review
Wednesday, April 3
Following Workshop
City Council Special Meeting
Budget adoption
Wednesday, April 10
7 p.m.
City Council Meeting
Fallback budget adoption date
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MORE
INFORMATION, RESOURCES
AVAILABLE AT:
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The Budget is Revealed
Proposed budget totals $198,713,177
Exceeds estimated tax cap by $2,110,951 due to $2.5 million decrease in state education funding
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Last night, on Wednesday, Feb. 14, 2024, I presented my proposed Fiscal Year 2025 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 on the dedicated FY2025 Budget Revealed webpage. This page includes video recordings and budget documents from the School Board's budget review and will include all City Council budget workshops and meetings and associated budget documents.
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 current economic and financial conditions impacting our citizens and the continuing challenges we face with the recruitment and retention of qualified employees and inflationary pressures driving the costs of products and purchased services required in all areas of our municipal
operations.
Budget Considerations and Development
The development of the Proposed Fiscal Year 2025 Budget results from an ongoing year-round 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 presented for Fiscal Year 2025, as in years past, 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 the needs and expectations of our customers and to address the many other considerations that influence the budgeting process, including contractual obligations and regulatory requirements from other levels of government, this budget proposal reflects a total of $198,713,177 for spending across all funds. This is a 6.4% increase over the prior year which is comprised of a 4.4%
increase attributable to school-related expenses and an 8.3% increase attributable to all other non-school
related expenses including public water and sewer utilities.
Please be aware that the estimated local school portion of the property tax levy for this proposed budget is $2,136,019 more than the related amount reflected in the tax cap formula. This overage is directly attributable to the $2,511,925 decrease in funding anticipated to be provided by the State of New Hampshire for public education here in Dover during Fiscal Year 2025.
The tax cap overage attributable to the school portion of the tax cap formula as noted above is slightly offset by the estimated city property tax levy being $25,069 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 $2,110,950. Therefore, the adoption of the budget as currently presented will require a two-third’s affirmative vote by the City Council as opposed to a simple majority.
Budget Prioritization
The Proposed Budget for Fiscal Year 2025 reflects an allocation of resources that will continue to address our community’s overall strategic priorities and diverse requirements for municipal services. Those priorities have been derived and continue to be reinforced by listening to the “voice of our customers”. This is accomplished through a number of means including actively engaging residents and business owners in collaborative planning and community problem-solving activities, encouraging citizen input during public hearings and public forums, conducting formal and informal customer surveys, evaluating the actual demand for services and addressing 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, drinking water, sewer and stormwater 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 2025 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 to 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 2025 Budget reflects certain adjustments to ensure that core service deliverables are not only maintained but 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 the funding amount most recently recommended by the Dover School Board to meet School Department needs. This includes eliminating nearly all School-related capital reserve contributions while also addressing a significant reduction in State education funding.
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Public Safety – Continues the third and final year of partially funding several Police Officer and Firefighter positions utilizing grant funds thereby allowing for the full expense to be absorbed gradually into the budget over multiple years. Also continues funding a program for mental health and wellness for Police and Fire Department employees utilizing the final year of gradually reducing grant funds similarly.
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Inspection Services – Moves all expenses and revenues reflected in the budget for the Inspection Services cost center entirely into the Planning Department's budget, whereas it was previously included in the Fire and Rescue Department. Also reflects the physical move of the Inspection Services offices and staff from the Liberty North End Fire Station during the forthcoming fiscal year.
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Street and Sidewalk Improvements – Funds sidewalk improvements at the level reflected in the recently adopted Capital Improvements Program (CIP). Pavement overlay maintenance expense is increased over the prior year's amount but at an increment less than that identified in the CIP.
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Stormwater – Funds are increased for the general drainage improvements and stormwater system maintenance expenses necessary for achieving compliance with federal Clean Water Act permit obligations.
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Recycling and Solid Waste Management – Funds contractual increases in curbside collection and disposal costs and incorporates a fee increase to sustain current and future operations of existing “pay as you throw” solid waste management program.
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Public Drinking Water – Funds increased expenses for supplies and maintenance necessary to ensure safe and reliable drinking water for the community. Includes costs and offsetting revenues from prior contamination settlement and state grants associated with full year of operation of new Pudding Hill treatment plant. Also reflects funding for operations of all other well and treatment facilities, a new standpipe supplementing Garrison Hill tank and a system-wide expansion of groundwater monitoring and water quality testing required to maintain compliance with federal and state public drinking water supply regulations.
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Information Technology – Funds ongoing cybersecurity improvements including network and building security installations and ongoing system updates per federal standards and industry best practices utilizing funds from final year of a three-year grant.
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Health Insurance – Funds contractual increases in current employee health insurance premiums and additional Other Post Employment Benefit (OPEB) obligations due to employee retirements.
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Public Transit – Funds a significant increase in Dover’s share of COAST public transit system for both inter- and intra-city routes while also utilizing the final year of gradually reducing grant funds that have allowed for absorbing full expense into budget over three years.
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Elections – Funds the replacement of paper ballot vote tabulating machines for all wards over three years.
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Grant Reimbursement – Funds ongoing homeless support services including outreach and emergency shelter operations utilizing 100% grant funds from various sources. Funds remaining COVID-19-related expenses including reimbursement for existing positions that remain involved with ongoing grant administration and reporting obligations, business assistance and public health communications utilizing final year of a three-year grant.
Conclusion
Over the course of the next few 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. In addition, we will present budget options to the City Council for it to consider as part of its final budget deliberations. These additions may include further adjustments in expenses and other potential sources of non-tax revenue. Ultimately, the City Council's thoughtful discussions and further adjustments will assure Dover’s citizens that the
budget finally adopted for the coming year has been thoroughly reviewed and justified.
As always, I wish to thank the School Board, the School Superintendent, our department heads and all of their staff for the effort invested in assembling this budget proposal all the while continuing to ensure that our services are delivered with quality and efficiency, especially given our ongoing recruitment and staffing challenges. I also wish to extend my gratitude and ask you to join me in acknowledging Dan Lynch, our Finance Director, and his staff, for the extraordinary effort they have made to ensure the timely production of this budget book and all other supporting materials.
Finally, I would be remiss if I did not also make note of the significant and often extraordinary efforts each and every one of our municipal employees makes each and every day delivering the many services and programs that contribute to the overall quality of life in our community. They are our teachers, maintenance workers, administrative and professional staff and public safety forces. We are well served by their dedication, commitment and perseverance as public employees. Please join me in acknowledging and thanking them for the dedication and positive difference they make in our own lives and for others each and every day.
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J. Michael Joyal, Jr.
City Manager
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The proposed budget for fiscal year 2025 is $198,713,177 across all funds, an increase over the previous year of $12,036,666, or 6.4%. The General Fund portion of the budget, funded primarily through property taxes, is $157,993,146, an increase over the previous year of $8,432,880, or 5.6%.
The total estimated tax rate, as proposed, is $19.75 per $1,000 valuation, an increase over the current rate of $1.05 per $1,000 valuation, or 5.6%. This estimated total tax rate breaks down as:
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City portion: $6.98, an increase of 29 cents, or 4.3%;
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School portion, local: $9.75, an increase of 78 cents, or 8.7%;
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School portion, state: $1.20, a decrease of 6 cents, or 4.8%;
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Strafford County portion: $1.82, an increase of 4 cents, or 2.2%.
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Based on the average residential property assessment of $457,687, the estimated average property tax bill, based on the proposed budget, is $9,040, an increase of $481, or 5.6%.
The final tax rate for Fiscal Year 2025 will be certified by New Hampshire Department of Revenue Administration in the fall of 2024 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 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 Feb. 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 April 15 after separate public hearings for the City and School budgets. The adopted 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 April 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 that 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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