How Much is Portsmouth's New Budget?

In the face of declining New Hampshire Retirement System contributions and other state grants, Portsmouth officials have put together a proposed fiscal year 2014 budget of more than $93.2 million that calls for a 45-cent property tax increase.

City Manager John Bohenko, Mayor Eric Spear and City Councilor Nancy Novelline Clayburgh said the proposed spending package reflects a commitment by city departments to stay below the 4 percent increase threshold set by the council in December. It also includes an additional $1,256,903 for retirement system benefits for police officers, firefighters, teachers and other municipal employees.

The bottom line proposed fiscal year 2014 budget that Bohenko presented on Friday morning at City Hall is $93,223,137, which is up $2,666,869 over this year's budget. The city's proposed operating budget of $73,216,323 represents a 3.92 percent increase.

"The biggest story of this budget is probably retirement," Bohenko said. In 2010, the state contributed 35 percent of the city's retirement system contributions and next year that number will be 0, Bohenko said. The city's proposed contribution of more than $1.25 million represents a 26 percent increase from this year.

He said 46 percent of the proposed operating budget of more than $73 million is related to the lack of state retirement system contributions, which is an issue that other cities and towns across the state are dealing with, he said.

If approved, Bohenko said the city's local property tax rate would increase from $17.55 per one thousand dollars of assessed valuation to $18 per one thousand dollars of assessed valuation. To put that into perspective, Bohenko said the city's tax rate would have gone up only 14 cents instead of 45 cents if not for the lack of state retirement system contributions.

"Given that we still have a really good story to tell," said Bohenko. Overall, he said the city will maintain the same level of services next year as it has this year. He said the Portsmouth Police Department will lose two positions, but $80,000 will be transferred from the city's parking and transportation fund to pay for a full-time downtown beat police officer.

Spear echoed Bohenko's sentiments. Despite dealing with some of the most challenging economic times, Spear said the city has managed to come out of it "rather successfully."

Spear believes the proposed budget is a good reflection of how the city wants to conduct its business while improving infrastructure, maintaining good schools and public safety. "What this will do is make sure the budget is the document that expresses the city's values on how we want to spend the city's money," he said.

Clayburgh said the council's decision to set a 4 percent spending increase threshold in December and the city departments' willingness to stay within that threshold has made the budget setting process much easier this year.

Bohenko said the public will also have several opportunities to weigh in the proposed spending package. He said the council will hold a work session on April 6 from 9 a.m. to 3 p.m. to discuss the proposed police, fire, and school budgets followed by a full calender of public hearings in April and May. He said the work session will be videotaped for YouTube and rebroadcast on Channel 22.