City manager presents FY22 budget to Dover City Council

posted on: 4/14/2021

City Manager J. Michael Joyal, Jr., presented his proposed fiscal year 2022 budget at the City Council meeting tonight, Wednesday, April 14.

The FY 2022 budget, encompassing all city departments and the Dover School District, provides proposed appropriations of $166,173,251 across all funds. This includes proposed appropriations of $133,834,473 from the general fund, $13,807,584 from special revenue funds, such as grants, and $18,531,194 spending from proprietary funds, such as the sewer and water accounts funded by user fees.

"The proposed budget now before you is directly influenced by identifying and responding to the varied needs and interests of our customers – our community's residents, business and visitors," Joyal said during his budget presentation. "The development of the proposed budget results from a continuous and ongoing review of all municipal function and service priorities."

Joyal's presented budget includes proposed spending of all city departments, including the School Board's "default budget" recommendation for Dover School District's operations. As presented, the proposed FY 2022 budget is a 5.7 percent increase over the current fiscal year's budget, compromised of an 8.4 percent increase of school-related expenses and a 3.4 percent increase of all other non-school related costs.

The School Board passed its "default budget" – the current year's budget with added contractual obligations – on March 8 to comply with existing contractual provisions and to meet the City of Dover Charter deadline to submit a budget. However, the School Board continues to work to find cost reductions and is expected to update its budget in the coming weeks with a goal to deliver a budget within the school's portion of the tax cap formula.

In the proposed FY 2022 budget, the estimated city portion of the local property tax levy is $58,826 below the estimated city portion of the tax cap formula; the estimated local school portion of the property tax levy is $5,243,303 above the estimated school-side of the tax cap formula. With these amounts combined, the proposed budget as presented exceeds the City of Dover Charter's tax cap requirements by $5,184,477. For the City Council to adopt the budget as presented, it would require a two-thirds affirmative vote instead of a majority vote. 

For the average residential property in Dover – valued at $314,022 – the estimated property tax would be $8,356, an increase by $553 or 7.1 percent of the current property tax levy. This includes an estimated $53, or 1.9 percent increase on the city property tax portion; an estimated $487 or 11.8 percent increase to the school property tax portion; and an estimated $13 or 1.7 percent increase for the county property tax portion.

A significant budget driver for both the school and city sides is considerable contribution increases into the New Hampshire Retirement System as required by state law. Reductions in health insurance premiums partially offset the contribution rate increase. 

There has been an increase in non-tax revenues on the city-side from what appears to be an improving economy and the direct result from the stimulus funds and financial assistance provided by the federal and state level.

Other FY 2022 budget highlights include:

• Maintains existing level core city services
• Adds a new police officer position funded by a Community Oriented Policing Services (COPS) grant
• Loss of grant funding for the Police Department's Community Outreach Division eliminates a vacant position
• Includes a new position in the Community Services Utilities Division to assist needs and obligations for water quality permits
• Adds a part-time position in the Human Resources Office for separation of duties as recommended by the City of Dover's financial auditors
• Funds the replacement of a 10-year-old ice resurfacer at the Dover Ice Arena
• Provides a $200,000 increase for street pavement overlays, keeping the City on track to reach the Capital Improvement Program's recommended level of funding within the next two years
• Eliminates $80,000 annual planned reoccurring expense for police officer/patrol vehicle cameras for the next six years by utilizing grants in the current budget cycle.

The budget in its entirety can be viewed under the City of Dover's Budget Revealed webpage at https://www.dover.nh.gov/government/open-government/budget-revealed/fy2022-budget/. Budget presentation videos will also be posted to the page. 

In the coming weeks, the City Council will hold numerous workshops with department managers to understand budget needs from the managers' perspective. The Council will then deliberate and pass a budget in either May or early June. The fiscal year 2022 budget would begin on July 1, 2021.

The City Council's FY 2022 budget schedule for the following Wednesdays: 

• April 21 at 7 p.m. — Budget review workshop — Presentations by School District, Executive, Finance, and Planning departments
• April 28 at 6 p.m. — Budget review workshop — Presentations by Recreation, Library and Welfare departments
• May 5 at 7 p.m. — Budget review workshop — Presentations by Police and Fire departments
• May 12 at 7 p.m. — Regular meeting — Public hearing on School District proposed budget
• May 19 at 7 p.m. — Budget review workshop — Presentation by Community Services Department
• May 26 at 7 p.m. — Regular meeting — Public hearing on City budget
• June 2 at 7 p.m. — Budget review workshop — budget deliberation
• June 2, immediately following the workshop — Special meeting — FY2022 budget adoption