Finance committee projects roughly $500,000 surplus for FY25; establishes non‑lapsing senior transportation account

Sharon Wiccans, the city finance officer, told the Committee on Accounts, Enrollment, Revenue Administration on July 1 that the city’s unaudited financial results through 11 months of fiscal 2025 show most departments within budgetary benchmarks and that the city is likely to finish the fiscal year with a surplus.

"So, I'm hopeful that we end the year with a with a bit of a surplus," Wiccans said, adding she estimated the surplus at about $500,000 though the exact figure will be clearer when June closes and year-end reports are finalized in July.

Wiccans reported that the average unobligated balance benchmark after 11 months is 8.33 percent and that all departments are within 10 percent of that benchmark except the Department of Public Works. She said the overall obligated percentage after 11 months is 11.79 percent compared with 11.07 percent a year earlier. Wiccans estimated the severance reserve account will have between $300,000 and $400,000 remaining and said contingency remains $145,000.

On revenues, Wiccans said some lines outperformed last year — auto registrations were about $656,000 higher and interest income about $310,000 higher — while state revenue was roughly $1.1 million lower than the prior year. She also said taxes as a whole may miss the budget by about $100,000 while building permit revenue could exceed projections by roughly $100,000.

Committee members pressed for clarification about interest income and its ranking among revenue sources; Wiccans said interest likely ranks among the city’s top five revenue sources this year and that she expects interest to beat budget by roughly $200,000 to $300,000.

Separately, the committee reviewed a proposal to create a non‑lapsing balance-sheet account to hold funds for a senior transportation project. Committee members were told the account holds money already raised and earmarked for the project — an initial "nugget" of $3,000 was cited as already raised — and that donations and other designated funds may be placed in the account. Finance will control expenditures from the account to ensure payments align with the purpose for which the account was created.

A committee speaker described the account as being managed by the health department and the Manchester Transit Authority (MTA) in consultation with the mayor's office; the finance department will confirm that any disbursement matches the approved plan. The committee was told that, before spending money, a plan will be created and stakeholders will be in agreement about next steps. Wiccans said there is not a separate formal authorization process beyond those internal reviews but that finance will not process payments that are not aligned with the designated purposes.

A motion to accept the finance report and related materials for the first 11 months of FY25 was made and seconded; the committee voted to accept the report. A separate motion to create the non‑lapsing senior transportation account was moved by Alderman O'Neil and seconded by Alderman Vincent; the committee voted in favor.

The committee flagged a pending county tax challenge related to tax rates; Wiccans said the city had budgeted conservatively and is "doing a little bit better than what we had thought" heading into the new fiscal year. She advised that final surplus figures will be clearer in July after staff closes June activity and verifies there are no lagging items.