Portsmouth Town Council proposes $77.2M FY 26 budget with 1.49% tax increase

The Portsmouth Town Council meeting on April 28, 2025, focused on the proposed fiscal year 2026 budget, which totals $77.2 million. This budget represents a 3.76% increase from the previous year and includes a modest property tax rate increase of 1.49%. The proposed tax rate will be $13.37 per $1,000 of assessed value, remaining well below the state’s statutory tax cap by over $1 million.

Key priorities outlined in the budget include support for local schools, public safety, and infrastructure improvements. Personnel costs are the largest budget driver, reflecting wage agreements and efforts to retain staff. The budget also allocates over $650,000 for targeted capital investments, including upgrades in public safety and road maintenance.

The council highlighted that Portsmouth's tax rate is competitive compared to other municipalities in Rhode Island, falling below the statewide midpoint while providing full municipal services. Over 80% of the town's revenue comes from property taxes, emphasizing the importance of a stable tax base for funding local services.

The council also discussed the capital improvement plan, which addresses critical needs such as fire and EMS equipment, public works vehicles, and technology upgrades. The proposed budget includes a projected $1.3 million for road maintenance, with an additional state grant expected to enhance road conditions further.

Looking ahead, the council scheduled a public hearing on June 11, with final budget adoption set for June 30. This budget aims to maintain fiscal responsibility while ensuring the continuity of essential services for the community.