Residents press council on schools, recreation and stormwater during FY2026 budget hearings; council weighs retiree pay action

Public hearings on the proposed FY2026 operating budget, the capital improvement program and changes to rates and levies drew multiple residents urging stronger support for Portsmouth Public Schools, youth recreation and stormwater projects, while retirees pressed the council for increased retirement payouts.

Why it matters: The public hearings are part of the city manager’s proposed FY2026 budget process. Comments from residents and stakeholders touch on programs and capital projects that affect public safety, youth services and long-term fiscal commitments; council members asked staff for cost analyses before acting on retiree requests.

Residents, service providers and retirees used the hearings to press specific budget priorities. Joanne Clark, a Churchland resident who reviewed the budget documents, said the city’s total revenue figure had increased substantially from the prior year and urged council to consider the city’s debt limit in final decisions. “We’re getting close to our debt limit,” she said.

Sergio O’Neil, who identified himself as a Portsmouth resident and product of Portsmouth Public Schools, urged the council to prioritize education and recreation in the operating budget. “They deserve nothing but the best,” he said of the city’s students, and he warned against cuts that would reduce access to summer programs for families who rely on scholarships.

Several speakers raised capital projects listed in the CIP. Clark noted roughly $19 million more for drainage and street improvements and questioned a pattern of transfers from the stormwater fund; she also flagged proposed spending lines that include $6.5 million to replace plumbing in the municipal building, $3.2 million for elevators, $3 million to demolish the jail and what appeared to be $55 million for a public safety and city hall facility. She asked the city to clarify sequencing and whether some building projects could be deferred as the jail and regional facility timelines become clearer.

Residents also asked about utility operations and rates. Mary Smith questioned why the Lake Kilby pumping station appeared to run two 12-hour shifts and asked whether switching to three 8-hour shifts might reduce overtime expense and help ease upward pressure on water rates.

Retiree representatives pressed the council over pension increases and a one-time stipend. Garland Alexander, a retired Portsmouth firefighter, said retirees have not received a raise since 2013 and requested a plan to restore purchasing power; he and others urged an across-the-board approach. Jack Lilienthal, also a retiree, told council that current stipends do not meet the cost-of-living needs of widows and retirees and asked for tangible, ongoing relief.

Council response and next steps: Vice Mayor Moody and other council members said they want to address retirees’ concerns but asked staff for fiscal impact estimates before committing. Moody said the council could consider replacing the proposed $1,500 stipend with a 5% raise for the current budget year, but several members asked the manager to provide cost projections. Council members — including Dodson, Bridal and Tillich — emphasized they had not yet completed individual budget briefings with the manager and wanted the actuarial and fiscal details before any commitment. The city’s actuary and management committed to providing a cost estimate the following week for council review.

What the council did: These items were public hearings; no votes on the operating budget, CIP or rates were taken at the meeting. The council closed the hearings and directed staff to supply additional fiscal information on retiree options and capital sequencing to inform deliberations during upcoming budget sessions.

Ending: The city will continue budget deliberations in follow-up meetings. Council members asked residents to submit comments and attend future hearings; staff will return with requested fiscal impact analyses before any appropriation or compensation changes are approved.