Portsmouth Budget Passed, Tax Rate To Increase By 2.3 Percent

PORTSMOUTH, NH — The Portsmouth City Council has approved the next year's budget, which is 3.8 percent higher than this fiscal year. The new budget includes new positions for the police and fire departments and more than $1 million in additional funds for collective bargaining. The new budget takes effect July 1.

The $118,638,630 budget was approved by the City Council on Monday. With additional revenues expected for next year to help offset the 3.8 percent increase, the new tax rate for Portsmouth is expected to be $16.21 per $1,000 in assessed property value, which would be 37 cents higher than the current rate. This represents a 2.3 percent increase in the city's portion of the tax rate.

Before the budget was passed, Councilor Rick Becksted moved that the city manager reduce the new budget by another $500,000, saying that the city can find reductions in some salaries or positions. He said this reduction would correspond with the inflation rate. But no other councilor seconded his motion.

Councilor Nancy Pearson said that in contrast to previous years, she is happy to support a generous budget.

"This is the most generous budget with the most direct impact on hires, specifically for police and fire," said Pearson. "I'm glad we are able to do this."

Councilor Ned Raynolds said that when it comes to serving the taxpayers, this is "a very responsible budget, and somewhat of an achievement."

He said that about five new positions — the need for which has been discussed for the past several years — are finally being added.

"I think we are long overdue," said Reynolds.

Raynolds noted that the new positions are being added with a relatively low budget increase. Additional revenue has helped, he said.

The budget passed on Monday is a result of the City Council's adjustments to the $120,039,950 budget originally recommended by the city manager last month. Over the past few weeks, the council has made reductions to that proposed budget including delaying about $1 million of debt service.

About $1.12 million of the budget is designated as contingency to cover any additional expenses for union contracts, as city officials are negotiating 12 new collective bargaining agreements.

The budget includes a 4.62 percent increase to general government, a 3.25 percent increase in the police budget, a 2.97 percent increase to the fire department budget and a 3.17 percent increase to the schools budget.

The new budget passed in an 8-1 vote, with Becksted voting against. It will be in effect July 1.

Also on Monday, the City Council approved a 4 percent increase to the sewer rate and a 2 percent increase to the water rate.