Mayor Joey Hobbs told the Manchester Finance Committee during the April 22 meeting that the city could be looking at a $1.5 million deficit in the upcoming year’s budget draft that he intends to present at the Board of Mayor and Aldermen meeting.

“We had hoped to get the budget to everybody so we could start the conversation, but it’s taking a little longer…” Hobbs said.

The city should close out this year’s budget with about $12 million in reserve, next year’s general fund is estimated to be down to $10.5 million, according to the mayor.

“We are looking at investing in employees this year,” Hobbs said.

Hobbs said the big change from this year would be mostly in employee incentives. Employee raises will add about $700,000 for the city’s 150—160 full time employees and an overall spend of about $900,000 for additional employeerelated spends.

Employee insurance cost increased 11.27%, city building and vehicle insurance increased about 10% and employee retirement plan increased also.

A revised timeline for the budget approval will be to present the budget at BOMA May 5, discuss changes at the May 18 Finance Committee meeting and have BOMA vote on the changes at the June meeting. They will then have a special call meeting on June 16.

While the Finance Committee did not comment on the mayor’s initial budget estimates, a budget with a deficit could likely be a hard sale in an election year.

This year’s budget will likely come in over $1 million to the good, due in part to the sale o f property in the Manchester Industrial Park to Little Leaf Industries.

Three aldermen seats will be up for grabs in the August General Election and Vice Mayor Mark Messick is running as an Independent for County Mayor.