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Portsmouth staff outlines FY2026 budget priorities: schools, public safety, utilities and capital projects
Summary
Finance staff presented a $338 million FY2026 general fund budget that increases school funding, includes a five percent compensation plan for city employees, water/sewer and stormwater rate changes, and capital projects including a new K–8 school and sewer pump station upgrades.
City finance staff presented highlights of the proposed FY2026 operating and capital budgets at the April 22 work session, projecting a $338 million budget supported by $244.5 million in local revenues and outlining major program drivers.
Key operating and capital items presented by Craig Burke included:
- A proposed contribution for Portsmouth Public Schools of about $81.4 million, a 7.6% increase over the prior year. - A citywide compensation plan intended to move positions onto a graded step system and overall compensation movement of about 5% in the first year. - Water and sewer rate increases of 5% to support system maintenance and customer service improvements, and a $2 increase in the stormwater fee to address maintenance and infrastructure needs. - Capital projects including planning/design funding for a new K–8 school, city hall relocation planning tied to civic center demolition, sewer pump station upgrades, and neighborhood improvements (Ebony Heights, Prentice Place, Edgewood Park).
Burke said the budget also anticipates roughly $18 million in casino‑related revenues and noted prior decisions (including the PBTRA personal property tax relief rate and a 6¢ real estate tax credit) that affect the fiscal picture. He told council that the boat tax change and civic organization funding would be incorporated in the FY2026 materials where council provided consensus.
Council members asked for clearer, comparative revenue figures to assist policy tradeoffs (for example, how much 1¢ of a given tax yields in revenue and how machinery and tools is assessed relative to real estate), and asked staff to provide standardized impact reporting for civic recipients. Staff agreed to provide more detailed, comparative revenue breakouts and to circulate additional memos from constitutional offices where appropriate.
No final appropriation votes were taken at the work session; staff will incorporate council consensus items into the budget and return with ordinance language and supporting memos for formal adoption.
